Federal Reserve Bulletin, 1933-06

FEDERAL RESERVE BULLETIN JUNE 1933 ISSUED BY THE FEDERAL RESERVE BOARD AT WASHINGTON Recent Banking Developments Banking Act of 1933 Gold Reserves of Principal Countries, 1913-1933 Annual Report of Bank for International Settlements UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON: 1933 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BOARD Ex officio members: EUGENE R. BLACK, Governor. WILLIAM H. WOODIN, CHARLES S. HAMLIN. Secretary of the Treasury, Chairman. ADOLPH C. MILLER. GEORGE R. JAMES. J. F. T. O'CONNOR, J. J. THOMAS. Comptroller of the Currency. M. S. SZYMCZAK. E. M. MCCLELLAND, Assistant to the Governor. E. A. GOLDENWEISER, Director, Division of Research CHESTER MORRILL, Secretary. and Statistics. J. C NOELL, Assistant Secretary and Fiscal Agent. CARL E. PARRY, Assistant Director, Division of Research S. R. CARPENTER, Assistant Secretary. and Statistics. WALTER WYATT, General Counsel. E. L. SMEAD, Chief, Division of Bank Operations. GEORGE B. VEST, Assistant Counsel* J. R. VAN FOSSEN, Assistant Chief, Division of Bank LEO H. PAULGER, Chief, Division of Examinations. Operations. FRANK J. DRINNEN, Federal Reserve Examiner. FEDERAL ADVISORY COUNCIL District no.1 (BOSTON) THOMAS M. STEELE. District no.2 (NEW YORK) WALTER E. FREW. District no.3 (PHILADELPHIA) HOWARD A. LOEB. District no.4 (CLEVELAND) H. C. MCELDOWNEY 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) WALTER W. SMITH, President. District no.9 (MINNEAPOLIS) THEODORE WOLD. District no. 10 (KANSAS CITY) W. T. KEMPER. District no.11 (DALLAS) JOSEPH H. FROST. District no. 12 (SAN FRANCISCO) HENRY M. ROBINSON. WALTER LICHTENSTEIN, Secretary II Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OFFICERS OF FEDERAL RESERVE BANKS Federal Reserve Bank Chairman Governor Deputy governor Cashier of- Boston F. H. Curtiss R. A. Young W. W. Paddock W. Willett. New York J. H. Case _.._ J W . E . R . C . B ra u n r e gess C R . . H M . . C G o i e d . n i ey.i A. W. Gilbart J. W. Jones.» E. R. Kenzel W. B. Matteson.i W. S. Logan J. M. Rice.' L R. Rounds Allan Sproul.1 L. F. Sailer L. W. Knoke.1 Philadelphia. R. L. Austin G. W. Norris W. H. Hutt C. A. Mcllhenny. W. G. McCreedy.» Cleveland L. B. Williams E. R. Fancher M.J. Fleming H. F. Strater. F. J. Zurlinden Richmond W. W. Hoxton G. J. Seay C. A. Peple G. H. Keesee. R. H. Broaddus J. S. Walden, Jr.* Atlanta ' Oscar Newton W. S.Johns3 H. F. Conniff M. W. Bell. W. S. McLarin, Jr.* Chicago E. M. Stevens J. B. McDougal C. R. McKay W. H. Snyder» H. P. Preston _. W. C. Bacbman.i J. H. Dillard R. H. Buss.i 0. J. Netterstrom.1 A. T. Sihler.i E. A. Delaney.* St. Louis J. S. Wood W. McC. Martin 0. M. Attebery S. F. Gilmore.* J. G. McConkey A. H. Haill.» F. N. Hall.» G. 0. Hollocher.* 0. C. Phillips.* Minneapolis J. N. Peyton W. B. Geery Harry Yaeger H. I. Ziemer. H. I. Ziemer F. C. Dunlop.* Kansas City M. L. McClure G. H. Hamilton C. A. Worthington.... J. W. Helm. J. W. Helm Dallas C. C. Walsh B. A. McKinney R. R. GUbert Fred Harris R. B. Coleman W. 0. Ford.» San Francisco Isaac B. Newton J U. Calkins W. A. Day W. M. Hale. Tra Clerk i Assistant deputy governor. • Controller 8 Acting governor. MANAGING DIRECTORS OF BRANCHES OF FEDERAL RESERVE BANKS I 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 J. H. Frye. 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 J. 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 only official organ or periodical publication of the Board. The BULLETIN will be sent to all member banks without charge. To others the subscription price, which covers the cost of paper and printing, is $2. Single copies will be sold at 20 cents. Outside of the United States, Canada, Mexico, and the insular possessions, $2.60; single copies, 25 cents. in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

TABLE OF CONTENTS Review of the month—Recent banking developments 331 Report of Reconstruction Finance Corporation 341 Annual report of the Bank for International Settlements 355-367 National summary of business conditions 342 Financial, industrial, and commercial statistics: Reserve bank credit, gold stock, money in circulation, etc 343-346 Member and nonmember bank credit: All banks in the United States 348 All member banks 341, 347, 404 Weekly reporting member banks in 90 leading cities 349, 405 Brokers' loans 349 Acceptances and commercial paper 350 Discount rates and money rates 351, 406 Security prices, security issues, United States Government securities _ _ 352 ; Production, employment, car loadings, and commodity prices 353, 408-410 Merchandise exports and imports 354 Department stores—Indexes of sales and stocks 354 Freight-car loadings, by classes 354 Financial statistics for foreign countries: Gold reserves of central banks and governments, 1913-1933 368-372 Gold production _ 373 Gold movements- _ 373-375 Government note issues and reserves 376 Bank for International Settlements 376 Central banks 377-379 Commercial banks 380 Discount rates of central banks 381 Money rates 381 Foreign exchange rates 382 Price movements: Security prices _ _- 383 Wholesale prices - 383, 384 Retail food prices and cost of living 384 Law department: Banking Act of 1933 (approved June 16, 1933)-.. 385-401 Federal Reserve statistics by districts, etc.: Banking and financial statistics 402-407 Industrial and commercial statistics 408-411 IV Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN VOL. 19 JUNE 1933 No. 6 REVIEW OF THE MONTH United States Government securities purchased by the Federal Reserve banks in the open mar- During May there was a further inflow of currency to the Federal Reserve banks, which ket, were used in repayment of borrowing at brought the total return of cur- the Federal Reserve banks and in a reduction Return flow of i March 4 to $1,670,- of the reserve banks' holdings of acceptances. rency snce currency and X ™ . „ The reserve banks' portfolio of open-market gold 000,000. This return flow com- bills declined by $155,000,000 during the pares with total withdrawals of month and their holdings of discounts by $1,840,000,000 between February 1 and March $85,000,000. Member bank reserve balances 4, so that total money in circulation at the end at the end of May were about $325,000,000 in of May was $170,000,000 larger than at the end excess of legal reserve requirements. of January. A part of this increase may reflect Publication of weekly statistics showing the the recent growth in the volume of business movement of loans, investments, deposits, and activity with a consequent increase in the other items on the statements demand for currency for pay rolls and for retail member banks °^ member banks in leading trade. It would appear, therefore, that all or cities was resumed by the Fednearly all of the currency withdrawn during the eral Reserve Board during May. The figures period prior to the closing of the banks has published currently at the present time include been returned to the Federal Reserve banks. reports from member banks in 90 leading cities, The country's stock of monetary gold showed compared with 101 cities included in previous little change during May, while the gold reports. In the cities included in the weekly reserves of the Federal Reserve banks increased statement practically all the previously reportby $125,000,000 between April 26 and May 31, ing banks have been reopened under license; 1933. Of this amount $75,000,000 represented and present reports include about 90 percent gold returned from circulation and $50,000,000 of the banking resources covered by the earlier gold deposited with the Federal Reserve banks statistics. by the Treasury. By the end of May, gold coin At the reporting banks, total loans and inand certificates officially recorded as outside vestments increased by $525,000,000 between the Treasury and the Federal Reserve banks March 1 and May 31, more than three fourths were reduced to $605,000,000, the lowest of the increase being at member banks in New amount since 1922. In this total is included a York City. This increase reflected a growth of considerable volume of gold coin and gold $315,000,000 in holdings of United States Govcertificates that have been lost or destroyed, ernment securities and of $220,000,000 in loans as well as gold coin exported without a record other than security loans, while loans on secuand gold certificates held abroad. Funds made available to member banks dur- rities declined slightly, notwithstanding an ing May through the return flow of currency, increase of about $200,000,000 in loans to together with the proceeds of $55,000,000 of brokers and dealers in securities. The increase 331 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

332 FEDERAL RESERVE BULLETIN JUNE 1933 in loans may have reflected in large part the influence of the recent banking crisis on cuspurchase of acceptances by the reporting banks. tomers' rates was confined for the most part to Money rates declined somewhat further dur- the northeastern sections of the country, where ing May, and at the end of the month were rates rose sharply in February and March, close to the low levels pre- both in New York City and in other leading Money rates vailing before the banking northern and eastern cities. In southern and crisis. The table shows that western cities, on the other hand, where movein the open market in New York quotations ments of customers' rates are usually on a on prime commercial paper had dropped by smaller scale, there was relatively little change the week ending June 3 to 2 percent, as com- in the level of these rates which remained within pared with a range of 1% to l}i percent in the the general range that has prevailed in these week ending January 28, while quotations on cities since the autumn of 1931. The chart prime 90-day bankers' acceptances had again dropped to a range of three eighths to one half RATES CHARGED CUSTOMERS percent, compared with one fourth percent during the earlier period. Call loans to brokers, in which there has been the greatest increase during the banking crisis, were quoted at 1 percent at the end of May, as compared with 4.75 percent during the week ending March 18. OPEN-MARKET RATES IN NEW YORK CITY 1924 1925 1926 1927 1929 1930 1931 1932 1933 Week ending- also shows that the passing of the banking crisis was accompanied by a decline in custom- Jan. 28 Mar. 18 June 3 ers' rates in the northeastern sections of the Prevailing rate on: country and that in May these rates were back Prime commercial paper, 4-6 months „__ W-ig 4 -4H 2 to the levels which prevailed in the autumn of Aver P a r g i e m r e a b te a n o k n e r c s a ' l a l c l c o e a p n t s a - n . c es, 9 _ 0 days. 1.00 2^-3^' 1.00 1932. 4.75 Prices of many commodities that are freely Rates at most of the reserve banks on dis- traded in in the organized exchanges and counts for and advances to member banks quickly respond to changes in under sections 13 and 13a of the Federal Commodity prices business and financial condiand the foreign ex- Reserve Act have been reduced recently. On changes tions have advanced rapidly May 26 the rate at the Federal Reserve Bank in American markets since of New York was reduced from 3 to 2}{ percent; the early part of April. This advance has coron May 27 the rate at Chicago, on June 1 the responded both to the decline in the exchange rate at Boston, on June 2 the rate at San value of the dollar which has occurred during Francisco, on June 8 the rates at Philadelphia this period and to a rise in the world price and St. Louis, and on June 10 the rate at level of these commodities. Cleveland were reduced from 3% to 3 percent. Changes in the exchange value of the dollar Changes during recent years in rates charged in relation to the British pound are shown in by banks in leading cities to their own custom- the upper section of the chart, which comers are shown on the chart, pares fluctuations in the Paris quotations of Customer rates which compares the average British pounds and United States dollars. The rate charged customers in New comparison is made in terms of the French York City with a weighted average of custom- franc, the most important currency now on a ers' rates in 8 other northern and eastern gold basis, and shows percentage changes in cities, and 27 southern and western cities. The the quotations since February of this year^ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1933 FEDERAL RESERVE BULLETIN 333 The chart indicates that the quotation of the of exchange each day. This index should dollar has fallen by about 15 percent during closely parallel the index of American prices for this period in terms of the French franc, these international commodities shown in the whereas the British pound has declined by 2 upper line. The chart shows that these two percent during the same period. indexes have actually fluctuated very closely The extent to which the rise in the prices of together throughout the period, but since the certain commodities in this country has corre- first of March the index of American prices sponded on the one hand to the change in the has been consistently higher than the comparvalue of the dollar abroad and on the other able British index. It appears, therefore, that hand to changes in world prices is shown in the American prices have advanced somewhat more lower section of the chart. Each of the three rapidly than British prices even after allowance has been made for differences due to de- PRICES AND EXCHANGE RATES preciation in the exchange value of the dollar. Feb 1933 = 100 At the end of May, American prices of these six commodities averaged about 60 percent higher than in February. Of this rise of 60 points in the index, about one half appears to correspond to a rise in the British or world prices of these commodities. Of the other half of the advance, a part corresponded to the INDEX OF SIX INTERNATIONAL COMMODITIES decline in the exchange value of the dollar as compared with the pound sterling, and a part represented price advances in the American market in excess both of the advance in British prices and of the depreciation of the dollar in the exchange market. On May 26 there was introduced in the two houses of Congress a resolution authorizing the issuance of United States Govgold°cfauses° ernment obligations payable in Feb legal tender money rather than lines in this section represents a simple index in gold and declaring that all debts, public and of fluctuations since February 1 in daily prices private, whether they contain the so-called of six basic materials—cotton, lard, silver, gold clause or not, can be satisfied by payment copper, tin, and rubber. The lower line is an in legal tender money. In explanation of this index of the prices of these six international resolution the following statement was given commodities in the British market in terms of out at the Treasury Department: the pound sterling and shows that on the aver- "A joint resolution was introduced today in age the prices of these commodities have ad- both houses of Congress designed to clarify the effect of recent legislation upon the status vanced in Great Britain during the period by of the 'gold clause' in public and private somewhat more than 30 percent. Inasmuch obligations. This resolution has the support as the pound sterling was relatively stable in of the administration. terms of gold currencies during this period, "Since March 6, when the President declared this advance reflects almost entirely a rise in a bank holiday, transactions involving payments in gold have been brought under control the world price of these commodities. The in order to protect and maintain the supply middle line shows an index of these British which constitutes a reserve for the Nation's prices converted into dollars at the current rate currency. Gold is not now paid, nor is it Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

334 FEDERAL RESERVE BULLETIN JUNE 193a available for payment, upon public or private STATEMENT debts. "Recently the Thomas amendment to the Certain questions of interpretation have agricultural relief act has made all coins and arisen with respect to the legislation empowercurrencies of the United States legal tender ing the President to prevent the withdrawal for the payment of every debt, public and and hoarding of gold and the provision in the private. Due, however, to the language used, Thomas amendment making all coins and curdoubt has arisen whether obligations expressed rencies legal tender for all debts. Additional to be payable in a particular kind of money, and immediate legislation is necessary to such as gold coin, may be satisfied by payment remove the disturbing effect of this uncertainty in other forms of legal tender. and to insure the success of the policy by closing "While the Supreme Court of New York is possible legal loopholes and removing inconreported to have held in a recent case that an sistencies. obligation calling for payment in gold coin (1) By the Emergency Banking Act and the could be satisfied by payment of other lawful existing Executive orders gold is not now paid, forms of money, confusion may be created if or obtainable for payment, on obligations, pubthe existing legislation is differently construed lic or private. By the Thomas amendment in other jurisdictions. One of the purposes of currency was intended to be made legal tender the resolution is to remove any doubt and to for all debts. However, due to the language avoid confusion, so that debtors and creditors used doubt has arisen whether it has been made may have a clear definition of their legal legal tender for payments on gold clause obliposition. gations, public and private. This doubt should be removed. These gold clauses interfere with "Another purpose of the resolution is to make the power of Congress to regulate the value of clear that future obligations, public and private, the money of the United States and the enshall not contain the gold clause. The Thomas forcement of them would be inconsistent with amendment did not contain specific provision existing legislative policy. The Government to this effect. Such a provision is contained should have specific authority to control its in the resolution. gold resources. Furthermore, private debtors "The resolution makes it clear that all obligawith gold clause obligations are entitled to tions, past and future, will be upon the same protection and a prompt and clear definition of footing." their legal position. Reports made upon this resolution by the (2) Future issues of Government obligations Committees on Banking and Currency of the should be payable in lawful currency of the Senate and of the House of Representatives are United States and not in any specified coin. as follows: To promise to do otherwise, under the present circumstances, would open the Government to severe and merited criticism. This, however, [CALENDAR NO. 112. SENATE REPORT NO. 99. 73D requires legislation amending existing statutes Cong., 1st sess.] relating to Government obligations. It is es- UNIFORM VALUE OF UNITED STATES COINS sential that all obligations of the Government, AND CURRENCIES past and iuture, be treated alike. (3) In making all coins and currencies of the May 15 (calendar day, May 27), 1933.—Ordered to be United States legal tender the Thomas amendprinted ment has created confusion, which was not in- Mr. Fletcher, from the Committee on Banking tended, in the provisions of preexisting law and Currency, submitted the following report relating to gold coins when below standard to accompany S.J.Res. 56 weight, subsidiary coins, and minor coins. Philippine coins may also have been made legal The Committee on Banking and Currency, to tender for payment of debts in the continental whom was referred the joint resolution (S.J.Res. United States contrary to the real intent. 56) to assure uniform value to the coins and These uncertainties should be corrected. currencies of the United States, having considered the same, report favorably thereon to the RECOMMENDATIONS Senate wi^01^ amendment and recommend It is of the utmost importance that legislathat the joint resolution do pass. tion along the lines of that suggested in the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1933 FEDERAL RESERVE BULLETIN 335 joint resolution be enacted immediately be- The resolution accomplishes three purposes: cause— (1) It declares that the clauses in public and (a) It completely regularizes the present de private obligations stating that they are payfacto situation as to both public and private able in gold or a specific coin or currency are debts. contrary to public policy; (2) it provides that (b) An offering of Treasury obligations must obligations, public and private, expressed to be be announced on June 5 and issued June 15. payable in gold or in a specific coin or currency, It is essential that no question as to the good may be discharged dollar for dollar in legal faith of the Government be raised in connection tender. It also provides that no future obliwith this issue or future issues. gations, public or private, shall be expressed as (c) It would greatly facilitate administra- payable in any specific coin or currency; (3) it tion of the orders against hoarding. makes certain technical amendments to the (d) It would eliminate an existing uncer- Thomas amendment which are necessary to tainty in business. carry out the intention of that legislation (e) It places old "gold clause'' and new regarding what shall be legal tender in the "legal tender" obligations on the same footing United States. in respect of payment. 1. The occasion for the declaration in the (/) It would make certain of accomplish- resolution that the gold clauses are contrary to ment the declared policy of the Congress. public policy arises out of the experiences of the present emergency. These gold clauses REFERENCES TO STATUTES CONTAINING GOLD render ineffective the power of the Government CLAUSE to create a currency and determine the value thereof. If the gold clause applied to a very The act of February 4, 1910, provides: limited number of contracts and security issues, That any bonds and certificates of indebtedness of it would be a matter of no particular consethe United States hereafter issued shall be payable, quence, but in this country virtually all obliprincipal and interest, in United States gold coin of the gations, almost as a matter of routine, contain present standard of value. * * * (36 Stat. 192, the gold clause. In the light of this situation sec. 768, title 31, U.S.C.) two phenomena which have developed during The second Liberty Bond Act, under which the present emergency make* the enforcement bonds, notes, and certificates of indebtedness of the gold clauses incompatible with the public are issued, provides: interest. The first is the tendency which has The principal and interest thereof shall be payable developed internally to hoard gold; the second in United States gold coin of the present standard of is the tendency for capital to leave the country. value. (Sees. 752 and 753, title 31, U.S.C.) Under these circumstances no currency system, Similar provisions are contained in the fol- whether based upon gold or upon any other lowing statutes: Sections 408, 744, 745, 746, foundation, can meet the requirements of a and 751, title 31, and section 760, title 39 and situation in which many billions of dollars of section 447, title 12, United States Code. securities are expressed in a particular form of the circulating medium, particularly when it is [House Report no. 169. 73d Cong., 1st sess.] the medium upon which the entire credit and currency structure rests. UNIFORM VALUE OF COINS AND CURRENCIES 2. There can be no substantial question as to OF THE UNITED STATES the constitutional power of the Congress to make this legislation applicable to all obliga- May 27, 1933.—Committed to the Committee of the Whole House on the state of the Union and ordered tions, public and private, both past and future. to be printed The power of Congress to issue a currency and determine the value thereof and to provide for Mr. Steagall, from the Committee on Banking the borrowing of funds by the Government is and Currency, submitted the following report express and undoubted. It is also undoubted to accompany H.J.Res. 192 that Congress has all powers necessary to make the exercise of these two express powers effec- The Committee on Banking and Currency, tive. Contracts of private individuals, past or to whom was referred the resolution (H.J.Res. future, are valid and enforceable only insofar 192) to assure uniform value to the coins and as they do not conflict with public policy as currencies of the United States, having con- enunciated by Congress in the exercise of its sidered the same, report favorably thereon and constitutional powers. When, therefore, as is recommend that the bill do pass. declared in this resolution, the enforcement or 177784—33 2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

336 FEDERAL RESERVE BULLETIN JUNE 1933 making of gold-clause provisions obstructs the matter stricken out shown in brackets, as proper exercise of the congressional powers, follows: such provisions must yield. Nor does the fact- ACT OF MAY 12, 1933 that outstanding obligations of the Govern- SEC. 43. Whenever the President finds, upon inment are expressed as payable in gold coin vestigation, that (1) the foreign commerce of the impose a limitation, under the circumstances United States is adversely affected by reason of the obtaining, upon the exercise of the powers con- depreciation in the value of the currency of any other government or governments in relation to the present ferred by the Constitution. The Government standard value of gold, or (2) action under this section cannot, by contract or otherwise, divest itself is necessary in order to regulate and maintain the of its sovereign power. All contracts of the parity of currency issues of the United States, or (3) Government are made in the light of this inalien- an economic emergency requires an expansion of credit, or (4) an expansion of credit is necessary to able power to legislate as the public interest secure by international agreement a stabilization at may demand. It is too well settled to admit proper levels of the currencies of various governof controversy that contracts or provisions of ments, the President is authorized, in his discretion— contracts, even though not inconsistent with (a) To direct the Secretary of the Treasury to public policy when made, may subsequently enter into agreements with the several Federal Reserve banks and with the Federal Reserve Board become contrary to public policy, as authoriwhereby the Federal Reserve Board will, and it is tatively announced by the legislative branch of hereby authorized to, notwithstanding any provisions the Government, and that, in such event, they of law or rules and regulations to the contrary, permit become invalid and unenforceable. such reserve banks to agree that they will, (1) conduct, pursuant to existing law, throughout specified So far as the future is concerned the power to periods, open market operations in obligations of the borrow, both of the Government and of private United States Government or corporations in which the United States is the majority stockholder, and (2) interests, will be seriously impaired unless outpurchase directly and hold in portfolio for an agreed standing obligations and future obligations are period or periods of time Treasury bills or other placed upon the same footing in respect of the obligations of the United States Government in an medium of payment. Considerations of both aggregate sum of $3,000,000,000 in addition to those they may then hold, unless prior to the termination equity and practical necessity demand that this of such period or periods the Secretary shall consent be done, and it is the purpose of the resolution to their sale. No suspension of reserve requirements to accomplish this end. of the Federal Reserve banks, under the terms of 3. The second section of the resolution is a section ll(c) of the Federal Reserve Act, necessitated by reason of operations under this section, shall reclarification of a clause in the act approved quire the imposition of the graduated tax upon any May 12, 1933. Under that act as passed, coins deficiency in reserves as provided in said section ll(c). of the Philippines would be legal tender in the Nor shall it require any automatic increase in the rates of interest or discount charged by any Federal United States, and abrased gold coins would Reserve bank, as otherwise specified in that section. be legal tender at their face value. This situ- The Federal Reserve Board, with the approval of the ation, which occurred through inadvertence, Secretary of the Treasury, may require the Federal should be corrected as is done by the resolution. Reserve banks to take such action as may be necessary, in the judgment of the Board and of the This legislation is complementary to the steps Secretary of the Treasury, to prevent undue credit already taken under the Emergency Banking expansion. Act to protect the monetary system and is (b) If the Secretary, when directed by the Presiessential for the accomplishment of national dent, is unable to secure the assent of the several recovery. Federal Reserve banks and the Federal Reserve Board In conformity with 2a of rule XIII of the to the agreements authorized in this section, or if operations under the above provisions prove to be House rules, there is herewith printed in full inadequate to meet the purposes of this section, or if paragraph (1) of subsection (b) of section 43 for any other reason additional measures are required of the act entitled "An act to relieve the in the judgment of the President to meet such purposes, then the President is authorized— existing national economic emergency by in- (1) To direct the Secretary of the Treasury to creasing agricultural purchasing power, to raise cause to be issued in such amount or amounts as he revenue for extraordinary expenses incurred by may from time to time order, United States notes, as reason of such emergency, to provide emer- provided in the Act entitled "An act to authorize the gency relief with respect to agricultural in- issue of United States notes and for the redemption of funding thereof and for funding the floating debt of debtedness, to provide for the orderly liquidathe United States", approved February 25, 1862, and tion of joint-stock land banks, and for other acts supplementary thereto and amendatory thereof, purposes", approved May 12, 1933, showing in the same size and of similar color to the Federal the change made in the last sentence of para- Reserve notes heretofore issued and in denominations of $1, $5, $10, $20, $50, $100, $500, $1,000, and graph (1) of subsection (b) of said section 43 $10,000; but notes issued under this subsection shall by showing new matter printed in italics and be issued only for the purpose of meeting maturing Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNK 1933 FEDERAL RESERVE BULLETIN 337 Federal obligations to repay sums borrowed by the The principal and interest thereof shall be payable in United States and for purchasing United States bonds United States gold coin of the present standard of value. and other interest-bearing obligations of the United The same provision appears in the second, States: Provided, That when any such notes are used for such purpose the bond or other obligation so ac- third, and fourth Liberty Loan Acts and in quired or taken up shall be retired and canceled. other loan laws since then. Such notes shall be issued at such times and in such Millions of our people bought these bonds amounts as the President may approve but the aggrewith this pledge. Whether all gave equal gate amount of such notes outstanding at any time shall not exceed $3,000,000,000. There is hereby weight to it is irrelevant where honor is inappropriated, out of any money in the Treasury not volved. The pledge alone counts though no otherwise appropriated, an amount sufficient to enable more than one man gave it heed. the Secretary of the Treasury to retire and cancel 4 As a matter of fact this pledge has been a per centum annually of such outstanding notes, and the Secretary of the Treasury is hereby directed to vital consideration not alone with public securiretire and cancel annually 4 per centum of such out- ties but also with a great number of corporate standing notes. [Such notes and all other coins and borrowings. Their total has been estimated at currencies heretofore or hereafter coined or issued by a hundred billions in par value. Importance or under the authority of the United States shall be legal tender for all debts public and private.] has been attached to the gold promise by count- All coins and currencies of the United States (including less treasurers of universities, colleges, other Federal Reserve notes and circulating notes of Federal educational and philanthropic institutions, by Reserve banks and national banking associations) hereall sorts of men who are entrusted with investtofore or hereafter coined or issued, shall be legal tender ing the resources that support work for humanfor all debts, public and private, public charges, taxes, duties, and dues, except that gold coins, when below the ity. This includes the officers of our mutual standard weight and limit of tolerance provided by law savings banks with their nine billion and more for the single piece, shall be legal tender only at valuation of deposits, the life-insurance companies with in proportion to their actual weight. more than 120,000,000 policies outstanding, and all other officials who must think of safety MINORITY VIEWS first when exercising their trust. Shall the This proposal has two elements. First, it solemn pledge to them be broken? renounces obligations of the United States. The good faith of a nation is its greatest asset. Secondly, it prohibits future obligations of the We have boasted that in this no nation is our same sort. superior. Upon it we have relied in our in- The second of these elements calls for no pro- ternational relations. On the very eve of a test here. If in the judgment of the Treasury conference that bids fair to be of supreme confuture borrowings or issuance of currency sequence to the welfare of the world, we are would better not be subject to payment or re- asked to replace good faith with bad faith, to demption in gold, very well. Questioning of tell those with whom we confer that whatever such judgment need not distract attention agreements we make may be repudiated next from the far more important issue, that of the day or next year. If we break solemn pledges public faith. to our own, what may be expected of those to In 1869 it was enacted (remember that others? "equivalent" means "equal work"): We are asking sundry nations to pay us what The faith of the United States is solemnly pledged to they owe. Will they be more likely to make the payment in coin or its equivalent of all the obliga- good their promises if we set them the example tions of the United States not bearing interest, known of repudiation? as United States notes, and of all the interest-bearing obligations of the United States, except in cases where That is the right name for it, repudiation, the law authorizing the issue of any such obligations has and this bill ought to be known throughout expressly provided that the same may be paid in lawful history as the repudiation bill of 1933. money or other currency than gold or silver. We are making huge loans to our own people, Yet we are now asked to declare that because to States, to cities, to various kinds of governsuch provisions "obstruct the power of the mental agencies. If we repudiate, shall we Congress to regulate the value of the money of expect them to pay? the United States", the faith that we solemnly It is true that legal casuistry, in England and pledged 64 years ago is to be repudiated. in one of our own subordinate courts, has re- What emergency can justify breaking the sol- cently perverted the plain meaning of language emn pledge of a nation? Do "solemn" and in order to give a color of defense to repudiation. "pledge" mean nothing? Not all the subtleties of all the lawyers in the When the first Liberty bond law was enacted world can change the fact that both parties in April of 1917, it said of the bonds: to these contracts understood the word&Ho Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

338 FEDERAL RESERVE BULLETIN JUNE 1933 mean what they said, what it has been hitherto respect thereto, shall be discharged upon payaccepted that they meant. ment, dollar for dollar, in any coin or currency Our Constitution forbade the States to impair which at the time of payment is legal tender the obligations of contracts. For some un- for public and private debts. Any such proviknown reason the fathers did not impose the sion contained in any law authorizing obligasame prohibition on the Nation. But the moral tions to be issued by or under authority of the principle involved is the same. The sanctity United States, is hereby repealed, but the reof contracts is the cornerstone of our civiliza- peal of any such provision shall not invalidate tion. To violate that sanctity is to invite ruin. any other provision or authority contained in The circumstances under which this expres- such law. sion of views was prepared made it impossible (b) As used in this resolution, the term " oblito sumit them to other members of the com- gation" means an obligation (including every mittee, but I am sure I am not alone in enter- obligation of and to the United States, excepttaining them. ing currency) payable in money of the United ROBERT LUCE. States; and the term "coin or currency" means coin or currency of the United States, including The resolution was passed by both Houses, Federal Reserve notes and circulating notes of and was approved by the President on June 5. Federal Reserve banks and national banking The text of the resolution is given below: associations. SEC. 2. The last sentence of paragraph (1) [PUBLIC RESOLUTION—No. 10—73D CONGRESS] of subsection (b) of section 43 of the act entitled "An act to relieve the existing national IHJ.Ees. 192] economic emergency by increasing agricultural JOINT RESOLUTION purchasing power, to raise revenue for extraor- To assure uniform value to the coins and currencies dinary expenses incurred by reason of such of the United States emergency, to provide emergency relief with respect to agricultural indebtedness, to provide Whereas the holding of or dealing in gold affect for the orderly liquidation of joint-stock land the public interest, and are therefore subject banks, and for other purposes", approved to proper regulation and restriction; and May 12, 1933, is amended to read as follows: Whereas the existing emergency has disclosed "All coins and currencies of the United that provisions of obligations which purport States (including Federal Reserve notes and to give the obligee a right to require paycirculating notes of Federal Reserve banks ment in gold or a particular kind of coin or and national banking associations) heretofore currency of the United States, or in an or hereafter coined or issued, shall be legal amount in money of the United States meastender for all debts, public and private, public ured thereby, obstruct the power of the charges, taxes, duties, and dues, except that Congress to regulate the value of the money gold coins, when below the standard weight of the United States, and are inconsistent and limit of tolerance provided by law for the with the declared policy of the Congress to single piece, shall be legal tender only at maintain at all times the equal power of valuation in proportion to their actual weight." every dollar, coined or issued by the United States, in the markets and in the payment Approved June 5, 1933, 4:40 p.m. of debts. Now, therefore, be it Resolved by the Senate and House of Representatives of the United States of America in The principal changes in central gold re- Congress assembled, That (a) every provision serves of European countries during the latter contained in or made with respect to any oblipart of April and the early part gation which purports to give the obligee a right to require payment in gold or a particular of MaJ were losses of $67,000,kind of coin or currency, or in an amount in 000 by Switzerland, $37,000,000 money of the United States measured thereby, by Netherlands, and $9,000,000 by Germany, is declared to be against public policy; and no and a gain of $11,000,000 by Italy. Reserves such provision shall be contained in or made in England, which had a considerable growth with respect to any obligation hereafter earlier in the year, showed little change for the incurred. Every obligation, heretofore or hereafter incurred, whether or not any such period, and the gold outflow from France also provision is contained therein or made with ceased. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

339 FEDERAL RESERVE BULLETIN JUNE 1933 GOLD RESERVES OF SELECTED CENTRAL BANKS Dollar quotations on sterling averaged $3.93 during May, as compared with $3.58 during [In millions of dollarsl April. In terms of gold currencies, however, Change from— sterling showed little change. On May 4 the Central bank of— D 19 a 3 te 3 , G s o er ld v e r s e- Month Year borrowing resources of the exchange equalizabefore before tion account were increased by £200,000,000. The account was established by the British E Fr n a g n l c a e nd M M a a y y 2 3 6 1 p 3 * , 9 1 0 7 7 3 + + 2 3 + + 2 5 8 8 1 Government in June 1932 with original powers Germany May 31 -9 -117 Italy May 20 i +52 to borrow up to £150,000,000 for the purpose of N Be e l t g h i e u r m lands. M M a a y y 2 1 2 8 3 3 7 3 2 6 + -4 2 4 0 dealing in gold and foreign currencies in order Switzerland. . May 23 407 - - 3 6 7 7 -83 to limit fluctuations in the pound. v Preliminary, Gold stock of the Bank of France increased 84,000,000 francs ($3,300,000) The Bank of England purchased £394,000 Bank of France in the 4 weeks ending May 26. ($1,900,000) of gold in May. From the be- On that date the bank's holdings amounted to ginning of February through 80,950,000,000 francs ($3,173,000,000) as com- England April, the months immediately pared with the peak of 83,359,000,000 francs preceding, the bank had ac- ($3,268,000,000) reached at the beginning of quired reserves at the average rate of about December 1932. Notes returning from circu- £19,800,000 ($96,600,000) a month. There lation in the past month went to increase was a heavy transfer of funds from bankers' "other" deposits at the bank. These deposits, to Government deposits during the past which include reserve balances of the French month, principally in the week ending May 31 when the British Treasury was preparing for BANK OF FRANCE [In millions of francs; figures preliminary] BANK OF ENGLAND Change from— [In thousands of pounds sterling; figures preliminary] May 26, 1933 Apr. 28, May 27, Change from— 1933 1932 May 31, 1933 Apr. 26, June 1, Gold 80,950 +84 +1,480 1933 1932 Foreign exchange 3,887 +41 -5,114 Domestic discounts and advances. 6,124 -331 -736 Government deposits 2,265 -75 -1,167 Gold 186,333 +394 +57,716 Other deposits 18,393 +1,212 -5,735 Discounts and advances 11, 249 -382 -1,233 Notes in circulation 83, 266 -1,726 +1,848 Securities 339,809 +3,468 -5, 295 Bankers' deposits .. 77, 472 -23,464 -12,485 Public deposits 33, 246 +22,464 +14,693 Other deposits 39, 536 +2,431 +5, 386 commercial banks, have decreased substantially Notes in circulation 374,063 +2,128 +18, 649 over the past year, chiefly as a result of the purchase of foreign exchange from the Bank of large payments of interest to be made on the France. public debt on June 1. Because of the antic- At the end of April the French Government ipation of these payments, the low level to obtained a credit of £30,000,000 from a syndiwhich bankers' balances were reduced by the cate of London banks, to run for a maximum Treasury's accumulation of funds was con- period of 6 months and to bear interest at the sidered temporary by the money market, as rate of 2}{ percent per annum. In granting indicated by the continued ease of short- the credit the participating London banks term rates. The rate on prime bankers' agreed to purchase 3-month Treasury bills acceptances remained at about one half of 1 from the French Government renewable at percent. their maturity for another 3 months. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

340 FEDERAL RESERVE BULLETIN JUNE 1933 Total gold and foreign-exchange reserves of gold and foreign-exchange reserves would be the Reichsbank declined 61,000,000 reichmarks permitted. ($14,500,000 at par of exchange) Reichsbank in the month ending May 31. Appointment of New Members of Federal Reserve Currency returning from circu- Board lation was used by the market to purchase re- On June 13, 1933, Mr. J. J. Thomas, of serves from the bank, to build up deposits, and Nebraska, and Mr. M. S. Szymczak, of Illinois, were appointed as members of the Fedto repay discounts and advances. eral Reserve Board for the unexpired portions Reserve losses by the Reichsbank have been of the 10-year terms ending January 24, 1943, heavy in the current year. In 1932 the bank's and April 18, 1943, respectively. reserves decreased by 236,000,000 reichsmarks ($56,200,000); and in the first 5 months of this year they fell by an additional 471,000,000 Changes in Discount Rates reichsmarks ($112,100,000), largely as a result The rate on rediscounts for and advances to of the bank's repayment of the credit granted member banks under sections 13 and 13a of the Federal Reserve Act was reduced from 3 to by a group of central banks in June 1931. 2% percent at the Federal Reserve Bank of New This credit, originally for an amount of $100,- York, effective May 26, and from 3K to 3 per- 000,000, was reduced by the end of 1932 to cent at the Federal Reserve Bank of Boston, $86,000,000. On March 5, 1933, it was further effective June 1, at the Federal Reserve Bank of reduced to $70,000,000, and in the first half of Chicago, effective May 27, at the Federal Reserve Bank of San Francisco, effective June 2, April the credit was entirely liquidated. The at the Federal Reserve Banks of Philadelphia decline in Reichsbank reserves has also been and St. Louis, effective June 8, and at the partly due to the progressive diminution in Federal Reserve Bank of Cleveland, effective the excess of merchandise exports from Ger- June 10. many which has required the bank to draw in- Changes in Foreign Central Bank Discount Rates REICHSBANK The following changes in discount rates during the month ended June 1, 1933, have been [In millions of reichsmarks; figures preliminary] reported by central banks in foreign countries: Change from— Bank of Danzig, May 6, from 4 to 3 percent. May 31, Danish National Bank, June 1, from 3% to 3 percent- 1933 Netherlands Bank, May 11, from 2>4 to 3}£ percent. Apr. 29, May 31, 1933 1932 Bank of Norway, May 24, from 4 to 3# percent. South African Reserve Bank, May 15, from 4 to 3>i percent. F G o o r l e d ig n-exchange r - eserves.. 37 7 2 7 - - 3 2 9 3 -4 -5 9 2 1 Bank of Sweden, June 1, from 3Hto 3 percent. Nonreserve cash. 238 +64 +10 Discounts and advances.-- 3,306 -20 +40 Deposits 439 +33 +8 Notes in circulation 3,469 -492 Member Banks Licensed and Not Licensed There is given below a table showing, as of creasing amounts from its stock of gold and May 31, the number of all member banks, and foreign exchange in order to maintain service on indicating the number of these banks that had received licenses to reopen from the Secretary the foreign debt. By May 31 the bank's reof the Treasury and those that had not reserves had been reduced to 449,000,000 reichsceived such licenses on that date. There is also marks ($107,000,000). Dr. Hjalmar Schacht, shown the amount of deposits held by these president of the Reichsbank, announced on banks on December 31, 1932, the latest date June 2 that no further decrease in the bank's for which such figures are available. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1933 FEDERAL RESERVE BULLETIN 341 MEMBER BANKS LICENSED AND NOT LICENSED AS OF MEMBER BANKS LICENSED AND NOT LICENSED AS OF MAY 31, 1933 MAY 31, 1933—Continued Deposits on Dec. 31, 1932, of Deposits on Dec. 31, 1932, of Number of banks b ce a n n s k e s d l o i n c e M ns a e y d 3 a 1 n , d 1 9 n 3 o 3 t ( l i i n - Number of banks c b e a n n s k e s d l o ic n e n M se a d y a 3 n 1, d 1 9 n 3 o 3 t ( l i i n thousands of dollars) thousands of dollars) Federal Keserve Federal Reserve district district All member banks: National banks- Boston 367 311 56 2,044,222 1,916, 703 127, 519 Continued. New York 827 701 126 10,315,00910,088,135 226,874 Dallas 514 487 683,686 678, 761 4,925 Philadelphia 685 587 2,181,481 2,025, 208 156,273 San Francisco 355 303 2, 253,837 2,207, 200 46, 637 Cleveland 634 482 152 2,545,930 2,030,086 515,844 Eichmond 394 308 86 1,041,489 854,092 187,397 Total 5,891 4,862 1,029 17,899,185 16, 743,906 1,155,279 Atlanta 320 278 42 745,757 705,191 40, 566 Chicago 772 479 293 3, 051,4622,685, 317 366,145 State bank mem- St. Louis 404 330 74 914,298 840,940 73,358 bers: Minneapolis 530 465 65 724,159 690,845 33, 314, Boston 29 25 486, 430 450,855 35,575 Kansas City 771 695 76 1,063,633 991,764 71,869 New York 150 142 5,793,981 5,757,546 36,435 Dallas 565 536 29 724,876 719,778 5,098 Philadelphia 64 57 669, 747 640,255 29,492 San Francisco. __ 430 364 2,864, 505 2,812, 335 52,170 Cleveland 72 60 1,213,415 854,699 358,716 Total 5,536 1,163 28,216,82126,360,394 1,856,427 A Ri t c la h n m ta ond 4 4 1 1 3 3 4 9 3 8 0 7 1 , , 0 9 4 5 8 3 2 7 2 1 5 , ,6 6 8 2 2 3 7 1 6 5 , , 4 2 2 7 5 1 National banks: Chicago 159 92 657,193 540,617 116, 576 Boston 338 286 52 1, 557,7921, 465,848 91,944 St. Louis 64 53 306,331 279,379 26,952 New York 677 559 118 4, 521,0284, 330, 589 190,439 Minneapolis 35 35 33, 669 33,669 Philadelphia. _.. 621 530 91 1, 511, 7341,384,953 126, 781 Kansas City 27 27 116,011 116,011 Cleveland 562 422 140 1, 332, 5151,175,387 157,128 Dallas 51 41,190 41,017 173 Richmond 353 274 79 739, 536 628,410 111, 126 San Francisco 75 610,668 605,135 5,533 Atlanta 279 239 40 658, 709 633, 568 25,141 Chicago 613 387 226 2, 394, 2692,144, 700 249, 569 Total 674 134 10, 317,636 701,148 St. Louis 340 277 63 607,967 561, 561 46,406 Minneapolis 495 430 65 690,490 657,176 33,314 Kansas City 744 76 947, 622 875, 753 71,869 1 Exclusive of banks placed in liquidation or receivership. QUARTERLY REPORT OF THE RECONSTRUCTION FINANCE CORPORATION On May 9 the Reconstruction Finance Cor- to March 31, 1933. In addition to the text, poration made its report to Congress covering the report contains tables covering various operations for the quarter ended March 31, phases of the Corporation's operations. A 1933, and for the period from the organiza- summary table derived from table 1 of this tion of the Corporation on February 2, 1932,report is given herewith: OPERATIONS OF THE RECONSTRUCTION FINANCE CORPORATION—AGGREGATE LOANS AND PREFERRED STOCK SUBSCRIPTIONS, FEB. 2, 1932, TO MAR. 31, 1933 Authorized Advanced Repaidl Outstanding Mar. 31, 1933 Under sec. 5 of the Reconstruction Finance Corporation Act: Banks and trust companies (including receivers) _ $1, 239, 392, 223 $1,035,060,418 $339,579,405 $695,481,013 Building and loan associations.. 110,073,636 103,066,291 16,045,422 87,020,870 Insurance companies 92,828,063 78,935,612 6,621,711 72,313,901 Mortgage loan companies.. 133, 560,337 128,829,174 15,305,289 113, 523,885 Credit unions _ _._ 492,001 449,653 13,158 436,495 Federal land banks. 30,500,000 18,800,000 18,800,000 Joint-stock land banks 11,292,823 5,322,974 78,639 5,244,335 Federal intermediate credit banks 9, 250,000 9,250,000 9,250,000 Agricultural credit corporations 4,404,007 3,859,950 1,531,104 2, 328,846 Regional agricultural credit corporations 65,097,596 58, 614,629 2, 901,889 55, 712, 740 Livestock credit corporations 13, 313,303 11,928, 531 6,814,005 5,114,526 Railroads (including receivers) 365,782,843 331,197,888 20,175,985 311,021,904 Total, sec. 5 of the Reconstruction Finance Corporation Act - 2,075,986,831 1,785,315,120 418, 316,605 1, 366,998, 515 Under the Emergency Relief and Construction Act of 1932: Self-liquidating projects under sec. 201 (a), title II 197,978,415 20,684,000 20,684,000 Financing of agricultural commodities and livestock, sec. 201 (d), title II 55,555,723 1, 651,596 415, 724 1, 235,872 Amounts made available for relief and work relief, sec. 1, title II 242,491, 200 201, 374,182 201,374,182 Total, Emergency Relief and Construction Act of 1932 496, 025,338 223, 709,778 415,724 223, 294,054 Under sec. 304, title II of the Emergency Banking Act of Mar. 9,1933: Loans on the preferred stock of banks and trust companies 1, 250,000 250,000 250,000 Subscriptions for preferred stock of banks and trust companies. 13,682,500 12,500,000 12,500,000 Total, sec. 304 of the Emergency Banking Act 14,932, 500 12, 750, 000 12, 750,000 Grand total 3 2, 586,944, 669 2,021,774,898 418,732, 329 1, 603,042, 569 1 Exclusive of repayments unallocated, pending advices; as of Mar. 31,1933. 2 Includes $66,871,787 authorized to aid in the reorganization or liquidation of closed banks. Does not include agreements to loan $45,700,000, or to subscribe to preferred stock up to $7,948,000, upon the performance of specified conditions. 3 Includes loans authorized which were subsequently withdrawn or canceled aggregating $167,677,642, of which $146,186,025 was for banks and trust companies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

342 FEDERAL RESERVE BULLETIN JUNE 1933 NATIONAL SUMMARY OF BUSINESS CONDITIONS [Compiled May 23 and released for publication May 25] Industrial activity increased considerably grains, flour, sugar, textile raw materials and during April and the first 3 weeks of May and finished products, hides, pig iron, nonferrous wholesale prices of many leading commodities metals, and rubber. Prices of most of these advanced, particularly in the latter part of commodities continued to advance rapidly in April and the early part of May. Following the first 2 weeks of May, and showed little the imposition of an embargo on gold on change in the third week of the month. Prices April 20 the exchange value of the dollar of livestock, which did not advance in April, declined and on May 20 was 87 percent of its increased considerably in the first 3 weeks of gold parity. May. Silver prices, after advancing by a sub- Production and employment.—Volume of stantial amount in the latter part of April, industrial production, as measured by the subsequently showed a decline, and petroleum Board's seasonally adjusted index, increased prices also were reduced. from 60 percent of the 1923-25 average in Foreign exchange.—During the 4 weeks fol- March to 67 percent in April, as compared with lowing the imposition of the embargo on gold 63 percent a year ago and a low of 58 percent the exchange value of the dollar declined to 83 last July. Activity at steel mills increased percent of its gold parity on May 5, but subsefrom 15 percent of capacity in March to 25 quently rose to 87 percent on May 20. The percent in April and there was a further noon buying rate on cable transfers on the increase in the first 3 weeks of May. Increased French franc rose from 3.98 cents on April 18 activity in the steel industry reflected chiefly to 4.50 cents on May 20, and the rate on the increased demand from automobile producers English pound rose from $3.49 to $3.87. and from miscellaneous sources, while demand Bank credit.—During the 4 weeks ending from the railroad and construction industries May 17 about $215,000,000 of additional curcontinued at low levels. At textile mills and rency was returned to the reserve banks, and shoe factories, production increased con- on that date all but $200,000,000 of the siderably during this period. Output of $1,930,000,000 withdrawn by banks and indipetroleum fluctuated widely, declining in the viduals between February 1 and March 13 had middle of April and subsequently increasing to been returned. Funds arising from the return a high level. of currency during the 4-week period were Volume of factory employment and pay rolls used to reduce reserve bank holdings of acceptincreased between the middle of March and the ances by an additional $130,000,000 and to middle of April by an amount somewhat smaller liquidate $85,000,000 of member bank indebtthan the decrease in the preceding month. edness at the reserve banks. As the result of Value of construction contracts, as reported an addition of about $100,000,000 to the by the F. W. Dodge Corporation, continued at reserve banks' holdings of gold, and a further previous low levels in April, but showed a con- reduction of Federal Reserve notes in circulasiderable increase in the first half of May. tion, the reserve ratio of the reserve banks Total value of awards in these six weeks was rose considerably between April 19 and May considerably smaller than in the corresponding 17. The decline in Federal Reserve notes period a year ago. reflected in part an increase of $50,000,000 in Distribution.—Freight traffic, which was at a Federal Reserve bank notes in circulation. low level in March, increased during April and Loans and investments of reporting member the first 2 weeks of May by more than the banks in New York City increased by about usual seasonal amount, reflecting chiefly large $400,000,000 between the middle of April and increases in shipments of miscellaneous prod- the middle of May, reflecting chiefly a growth ucts, grains, and livestock. of $200,000,000 in loans on securities and of Department-store sales increased sharply $140,000,000 in investments in United States from March to April, and the total for these 2 Government securities. Net demand deposits months showed slighly more than the usual also increased by about $400,000,000, of which seasonal increase over the volume of sales in January and February. about one third represented a further growth Wholesale prices.—During April, particu- of bankers' balances. larly in the latter part of the month, there were Money rates in the open market continued substantial increases in the wholesale prices of at low levels. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN 343 JUNE 1933 RESERVE BANK CREDIT OUTSTANDING AND PRINCIPAL FACTORS IN CHANGES MILLIONS OF DOLLARS Weekly Basis Wednesday Series MILLIONS OF DOLLARS 7000 7000 5000 5000 4000 4000 5000 GOLD STOCK 5000 4000 3000 3000 3000 MEMBER BANK 3000 DANtV RESERVE BIAALLAANNCCEESS 2000 2000 1000 1000 4000 4000 3000 3000 1000 1928 1929 1930 1931 1932 1933 Based on Wednesday figures; latest figures are for May 31. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

344 FEDERAL RESERVE BULLETIN JUNE 1933 FEDERAL RESERVE BANK CREDIT RESERVE BANK CREDIT OUTSTANDING AND FACTORS IN CHANGES [In millions of dollars] Averages of daily figures Reserve bank credit outstanding Factors of decrease Factors of increase Month or week B co il u ls n d te i d s- bo B u il g ls ht m G c U S u e o n t r n v a i i t e t t t i e e r s e s n d e s - - r c O e b r s a t e e h n d r e k v i r t e Total ta M s ry t o o n c g k o e- ld T c a u d re r ju r a e s s n t u e c r d y y in M l a c o ti i n o r e c n y u- M b r a e b e l s a a m e n n r b k c 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 1932—January 221 759 1,865 4,452 1,773 5,645 1,979 113 353 February __ 848 151 743 1,785 4,384 1,787 5,627 1,907 73 349 March 714 105 809 1,652 4,372 1,792 5,531 1,899 37 349 April 605 52 1,014 1,694 4,381 1,789 5,452 1,996 63 353 May 486 41 1,413 1,960 4,273 1,788 5.456 2,138 77 350 June 495 50 1,697 2,262 3,956 1,787 5,530 2,062 65 348 July 523 60 1,818 2,422 3,941 1,780 5,751 2,003 46 343 August 451 37 1,850 2,353 4,031 1,796 5,720 2,073 40 347 September. 387 34 1,848 4,140 1,826 5,685 2,181 35 347 October.... 328 34 1,851 2,231 4,226 1,886 5,643 2,307 38 355 November. 313 34 1,851 2,211 4,292 1,917 5,642 2,378 40 360 December.. 282 34 1,854 2,192 4,429 1,915 5,699 2,435 43 359 1933—January 255 1,806 2,110 4,547 1 901 2,516 351 February. _ 307 102 1,804 2,224 4,491 1,891 5,892 2,291 79 344 March 994 379 1,875 4,260 1,897 6,998 1,914 134 344 April 425 230 1,837 2,511 4,301 1,915 6,137 2,086 156 348 May 1,846 2,286 4,313 1,930 5,876 2,125 173 355 Week ending (Saturday)- 1933—January 7 245 33 1,853 2,153 4,526 1,902 5,669 2,513 352 January 14 249 32 1,829 2,127 4,548 1,905 5,616 2,563 353 January 21 251 32 1,793 2,091 4,558 1,908 5,616 2,526 351 January 28 267 31 1,770 2,080 4,554 1,897 5 620 2 487 350 February 4 31 1,763 2,074 4,549 1,886 5,664 2,426 350 February 11 256 31 1,775 2,078 4,530 1,892 5,717 2,369 346 February 18. _. 283 45 1,809 2,155 4,505 1,871 5,850 2,256 343 February 25... 335 181 1,833 2,357 4,450 1,892 6,032 2,235 342 March 4 847 361 1,848 3,056 4,333 1,922 6,805 2,065 345 March 11— 1,421 417 1,876 3,661 4,244 1,922 7,532 1,803 143 349 March 18— 1,184 400 1,907 3,476 4,251 1,920 7,260 1,898 140 349 March 25— 356 1,882 2,931 4,263 1,871 6,643 1,952 129 341 April 1- 524 316 1,846 2,688 4,270 1,864 6,376 1,973 141 332 April 8... 432 288 1,838 2,570 4,283 1,893 6,271 2,002 138 335 April 15.. 433 244 1,837 2,535 4,301 1,911 6,172 2,083 144 348 April 22_. 420 208 1,837 2,492 4,312 1,929 6,085 2,136 157 355 April 29.. 411 180 1,837 2,444 4,310 1,927 6,015 2,130 181 355 May6._ 404 148 1,837 2,407 4,311 1,873 5,972 2,080 184 355 May 13_ 343 115 1,837 2,311 4,312 1,910 5,910 2,090 178 355 May 20_ 331 81 1,843 2,272 4,313 1,933 2,126 175 354 May 27. 314 46 1,851 2,224 4,314 1,972 5,815 2,177 164 354 End of month series Wednesday series 1932 1933 1933 Dec. Jan. Feb. Mar. Apr. May Apr. May May May May May 31 28 31 30 31 26 10 24 31 Bills discounted , 274 582 426 435 302 Bills discounted... 385 400 330 312 302 Bills bought 31 305 171 20 Bills bought 177 144 113 78 43 20 United States Government se- United States Government securities.. 1,855 1,763 1,866 1,838 1,837 curities. 1,837 1,837 1,837 1,837 1,862 1,890 Other reserve bank credit 22 10 16 Other reserve bank credit 12 15 9 Total reserve bank credit... 2,145 2,077 2,794 2,572 2,459 2,218 Total reserve bank credit 2,412 2,396 2,297 2,254 2,2192,218 Monetary gold stock _ 4,513 4,553 4,379 4,282 4,312 rt, 315 Monetary gold stock 4,310 4,312 4,313 4,313 4,314 4,315 Treasury currency adjusted 1,923 1,872 1,939 1,887 1,907 1,954 Treasury currency adjusted 1,935 1,818 1,905 1,929 1,969 1,954 Money in circulation. 5,6755,645 6,546 6,320 6,003*5,813 Money in circulation 5,994 5,954 5,892 5,852 5,795 5,813 Member bank reserve balances. 2,5092,446 2,141 1,949 2,132 2,167 Member bank reserve balances.. 2,136 2,034 2,089 2,114 2,194 2,167 Nonmember deposits, etc 43 64 80 143 188 155 Unexpended capital funds, non- Unexpended capital funds 354 346 346 355 353 member bank deposits, etc 527 538 533 529 514 508 i Less than $500,000. Preliminary. Back figures.—See Annual Report for 1931 (tables 1-5). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1933 FEDERAL RESERVE BULLETIN 345 RESOURCES AND LIABILITIES OF FEDERAL RESERVE BANKS IN DETAIL; ALSO FEDERAL RESERVE NOTE STATEMENT AND FEDERAL RESERVE BANK NOTE STATEMENT [In thousands of dollars] May 31,1933 Apr. 30, 1933 May 31,1932 EESOURCES Gold with Federal Reserve agents 2,813,639 2,648, 692 2,100,537 Gold redemption fund with United States Treasury 44,353 62,115 41,129 Gold held exclusively against Federal Reserve notes. 2,857,992 2,710,807 2,141,666 Gold settlement fund with Federal Reserve Board 409,834 349,972 326,185 Gold and gold certificates held by banks 252,072 355, 628 322,435 Total gold reserves 3, 519,898 3,416,407 2,790,286 Other cash J 286, 770 310,694 262,958 Total gold reserves and other cash 3,806,668 3,727,101 3,053,244 Redemption fund—Federal Reserve bank notes. 6,242 3,318 Bills discounted: For member banks 300,843 433, 579 489,494 For intermediate credit banks 408 For nonmember banks, etc 172 Total bills discounted. 301,974 435,010 490,074 Bills bought: Payable in dollars- Bought outright J 12,881 163,527 4,690 Under resale agreement ... Payable in foreign currencies 6,981 7,181 ~30~837 Total bills bought 19,862 170,708 • 35,527 United States Government securities: Bought outright 1,889, 278 1,836,488 Under resale agreement 300 800 300 Total United States Government securities 1,889, 578 1, 549,169 Other reserve bank credit: Federal intermediate credit bank debentures Municipal warrants 4,823 5,726 5,285 Due from foreign banks 3,815 3,656 4,643 Reserve bank float (uncollected items in excess of deferred availability items) _ 2 2,035 6,738 10,946 Total reserve bank credit outstanding _ 2, 218,017 2,459,126 2,095,644 Federal Reserve notes of other reserve banks 15,143 20,850 11,585 Uncollected items not included in float 318,082 295,372 Bank premises 54,255 54,185 58,084 All other resources 48,020 46,103 40,517 Total resources. 6,466,427 6,606,055 5,565, 657 Federal Reserve notes: Held by other Federal Reserve banks. 15,143 20,850 11,585 Outside Federal Reserve banks 3,187,959 3,407,061 2, 560,631 Total notes in circulation 3,203,102 3,427,911 2,572,216 Federal Reserve bank notes in actual circulation. 96,280 47,808 Deposits: Member bank—reserve account 2,166,721 2,132,389 2,113,487 Government 72,328 59,197 17,271 Foreign bank 7,848 29,928 74,405 Special deposits: Member bank 83, 637 81,909 Nonmember bank 18,059 16,699 Other deposits 45,180 59,640 34,431 Total deposits ... 2,393, 773 2,379,762 2,239,594 Deferred availability items 318,082 295,372 306,583 Capital paid in 150, 271 150,171 154,801 Surplus 278, 599 278,599 259,421 All other liabilities 26,320 26,432 33,042 Total liabilities 6,466, 427 6, 606,055 5,565, 657 Contingent liability on bills purchased for foreign correspondents. 35,731 40,060 182,771 FEDERAL RESERVE NOTE STATEMENT Federal Reserve notes: Notes issued to Federal Reserve banks by Federal Reserve agents.. 3, 436,872 3,678,762 2,765,381 Collateral held by agents as security for notes issued to banks: Gold 2,813,639 2,648,692 2,100,537 Eligible paper 190,397 434,778 484,733 United States Government securities 480,900 639,500 204,700 Total collateral.. 3,484,936 3,722,970 2,789,970 FEDERAL RESERVE BANK NOTE STATEMENT Notes issued to Federal Reserve banks (outstanding). 123,134 67,374 Collateral pledged against outstanding notes: Discounted and purchased bills 26, 039 40,800 United States Government securities 136,274 67,854 Total collateral.. 162,313 108,654 1 " Other cash" does not include Federal Reserve notes or a bank's own Federal Reserve bank notes. 2 Excess of deferred availability items over uncollected items. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

346 FEDERAL RESERVE BULLETIN JUNE 1933 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 1933 Gold stock Month at o e f nd I i n n c s r t e o a c s k e Net gold N le e a t s r e e- D tic o m pr e o s - - From or to— (prel M im a in y ary) April Ja A nu p a ri r l ymonth during import from ear- duction, month mark i etc» Im- Ex- Im- Ex- Im- Exports ports ports ports ports ports 1932—January „—.-.._> 4,416 -44.2 —73.0 25.4 3.4 February.---. 4,354 -62.3 -90.6 26.4 1.9 A M M p a a r y r i c l h 4 4 4 , , , 1 3 3 5 6 9 2 7 0 -2 -2 1 3 3 4 6 . . . 1 1 0 -1 — -3 9 2 0 5 4 . . . 2 5 7 -2 5 2 4 8 . . . 1 0 3 2 3 3. . . 6 4 2 B E Fr n e a l g g n l i c a u e n m d . . _ _ 15,0 1 5 0 0 0 1 9 8 2 9, , 0 2 1 0 0 0 3 5 0 5 , , 0 2 4 0 4 2 1 1 2 6 , , 7 8 79 6 8 9 8 5 - J J A u u u l n y g e ust 4 3 3 , , , 9 0 9 1 7 8 9 8 7 -2 1 3 5 1 3 8 1 . . . 9 0 7 — - 2 3 0 6 6 .4 . . 1 0 — 1 5 0 2 6 0 8 . . . 2 5 8 0 5 5 . . . 9 2 1 N P G o e e r t r t h m u e g a r a n la l y nds _ 724 1 1 9 , , 0 3 7 4 1 7 9 1 , ,8 1 0 5 0 0 September 4,193 104.8 27.9 72.3 4.6 Switzerland 2,295 N O D o c e t c v o e e b m m e b r b e e r r _.—.._ 4 4 4 , , , 2 5 3 6 1 4 3 4 0 7 7 0 5 . . 8 6 1 2 2 0 1 0 0 . . . 7 6 9 •7 4 4 1 5 8 . . . 0 8 6 4 5 1 . . . 5 6 3 M C Ce a e n n x t a i r c d a o l a . . - A merica _ 3 48 6 3 8 6 1 4 1 2 8 , , 1 2 5 7 8 2 7 4 6 5 20 4 Argentina 4 15 Total (12 mos.)_. 52.9 -446.2 457.5 41.6 Colombia . __ 91 Ecuador 2 238 1933—January - >. 4,553 40.0 128.5 » -91.5 3.0 Peru 192 704 M Fe a b r r c u h a . ry 4 4 , , 3 2 8 8 0 2 -1 -9 7 7 3 . . 2 4 < - « 2 1 2 7. . 8 1 - - 1 1 7 0 8 0 . . 3 1 -1 2 2 5 . . 9 0 U Ve ru n g ez u u a e y la 864 134 504 150 April 4,312 29.5 -10.0 33.7 5.7 Australia __ .. __ _ 396 2,725 May p 4,315 3.7 -21.8 22.1 3.3 British India 25,629 China and Hong Total (5 mos.) -197.5 92.4 -314.1 24.1 Kong 187 1,281 12,728 Duth East Indies 125 686 Japan 2,973 6,702 i Gold released from earmark at Federal Reserve banks less gold placed Philippine Islands 478 1,737 under earmark. All other countries *. 157 6,100 274 4,803 2,193 2 22,462 » This figure, derived from preceding columns, represents the excess of domestic production over nonmonetary consumption of gold—chiefly Total 3 344 3 22,114 6,769 16,741 180,593 66,399consumption in the arts. In any given month, however, it may be predominantly affected by the fact that on the final day of the month (a) gold bullion or foreign gold coin recently imported may not yet have 1 Includes all movements of unreported origin or destination. reached a reserve bank or the Treasury, and (6) gold bullion recently 2 $22,462 exported to Italy. withdrawn from stock for export may not yet have been actually ex- 3 At New York—imports, $157,000, exports, $22,114,000. Elsewhere, ported. The figures are subject to certain unavoidable inaccuracies imports $187,000. In official reports of gold imports and exports. 1 Allowance has been made for gold earmarked at the Bank of England for account of the Federal Reserve Bank of New York. * Differs from Department of Commerce figure since $8,900,000 declared for export on Feb. 28 was not actually taken from the Federal Reserve Bank of New York until Mar. 1. v Preliminary figures. Back figures.—See Annual Report for 1931 (table 30). KINDS OF MONEY IN CIRCULATION [Money outside Treasury and Federal Reserve banks. In millions of dollars! End of month Total G co o i l n d c c G e a r o t t e i l f d s i- d S s a o i t l r a l v d l n a e d r r s - c S c e i a r l t v t i e f e s i r - o T n f u r o e r 1 t y a 8 e 9 s s - 0 s s i S d il u i v b a e r - r y M co in in or U S n t o n a t i t e t e e s s d R F n e e o s d e t e e r r v s a e lR F n b e e o a s d e t n e e r k r s v a e l t n b i N o o a n t a n e a - k s l 1932—January _ _. 5,641 407 850 32 367 1 260 115 282 2,648 3 677 February.. 5,604 406 820 31 363 1 260 114 280 2,634 3 691 March 5,459 404 779 31 355 1 259 114 274 2,546 3 693 April 5,465 411 758 30 356 1 257 114 282 2,551 3 703 May 5,480 435 735 30 355 1 257 114 290 2,558 3 702 June 5,695 453 716 30 353 1 256 114 289 2,780 3 701 July 5,726 454 694 30 351 1 254 113 289 2,838 3 700 August 5,692 449 669 30 350 1 255 113 285 2,793 3 744 September. 5,653 445 644 29 359 1 257 113 286 2,731 3 785 October. _. 5,628 445 624 29 361 1 257 113 289 2,689 3 817 November. 5,648 454 635 29 361 1 258 113 291 2,675 3 82$ December. 5,675 468 601 29 371 1 258 113 294 2,716 3 820 1933—January- 5,645 479 591 28 350 1 250 111 287 2,707 3 836- February _. 6,545 571 649 28 362 1 252 111 301 3,405 3 861 March 6,320 367 393 28 376 1 258 112 266 3,621 17 879 April 6,003 335 323 28 360 1 255 112 261 3,362 50 915 May *> 5,813 324 280 28 359 1 257 112 265 3,167 98 922 v Preliminary figures. Back figures—See Annual Reports for 1931 (table 35), 1930 (table 32), and 1927 (table 22). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1933 FEDERAL RESERVE BULLETIN 347 MEMBER BANE RESERVE BALANCES [In millions of dollars] Averages of daily figures Reserves held Excess reserves Month or week T m o b t e a a m l n — 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' T m o b t e a a m l n — 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 an u k n s try" 1931—November.... 2,118 774 512 57.0 10.7 19.4 26.9 December 2,069 766 807 503 59.5 18.5 16.9 30.9 1932—January , 1,979 724 767 488 35.4 4.5 1.8 29.2 February 1,907 681 753 473 43.8 7.2 11.3 25.3 March 1,899 687 747 465 59.0 17.8 17.3 23.8 April 1,996 780 749 466 152.1 88.1 35.7 28.3 May 2,138 874 800 464 277.1 155.1 91.5 30.5 June 2,062 783 819 459 234.4 89.4 111.4 33.6 July 2,003 767 781 455 204.4 75.0 91.6 37.9 August 2,073 832 797 444 269.9 127.7 108.9 33.3 September.... 2,181 927 812 443 345.5 193.4 119.6 32.4 October 2.307 1,001 863 444 435.9 241.6 160.5 33.7 November. -. 2,378 1,050 887 441 482.2 266.8 181.8 33.7 December 2,435 1,083 911 440 525.8 206.9 35.7 1933—January 2,516 1,109 965 442 583.8 286.2 254.2 43.4 February»-.. 2,291 441 417.3 74.5 291.0 51.8 Week ending (Friday)— January 6 2,508 1,121 453 308.7 219.1 January 13 2,559 1,171 946 442 350.1 236.4 January 20— 1,141 950 445 311.8 238.1 January 27 2,491 1,057 997 232.9 288.4 February 3 2,438 997 1,007 435 173.7 298.8 February 10 2,377 931 1,006 440 123.2 303.5 February 17 2,275 855 984 436 60.8 281.9 February 24 8 2,233 801 987 444 294.5 »Central reserve city banks only. > Figures not available by weeks. • March and April data not available. Back figures.—See Annual Report for 1931 (tables 49 and 56). MEMBER BANE DEPOSITS [In millions of dollars] Averages of daily figures Net demand and time deposits Net demand deposits Time deposits Month a T l b l o a m n ta e k m l s - - C Y N i o e ty r w k * r O e c s i t t e h i r e e v s r e " b C t a r o n y u k " n s - a T l b l o a b m n t e a e r k m l s - - C Y N i o e ty r w k * r O e c s i t t e h i r e e v s r e " b C t a r o n y u k " n s - a T l b l o a b m n t e a r k em l s - - C Y N i o e t r w y k i r O e c s i t t e h i r e e v s r e 11 b t C a r n o y k " u s n- 1931—November.. 28,218 6,612 11,350 10,256 16,358 5,653 6,273 4,432 11,860 5,076 5,825 December 27,438 6,414 11,048 9,976 15,985 5,546 6,106 4,333 11,453 868 4,942 5,643 1932—January 26,592 6,165 10,706 9,720 15,447 5,343 5,921 4,183 11,145 822 4,786 5,537 February... 25,715 5,797 10,413 9,505 14,789 5,001 5,723 4,064 10,926 796 5,440 March 25,431 5,760 10,291 9,380 14,575 4,959 5,622 3,993 10,856 800 4,688 5,387 April 25,386 5,950 10,109 9,327 14,589 5,138 5,492 3,959 10, 797 811 4,618 May 25,466 6,159 10,081 9,226 14,679 5,342 5,425 3,911 10,787 816 4,656 5,315 June 25,075 5,957 10,032 9,087 14,413 5,154 5,433 3,826 10,663 803 4,599 5,261 July 24,712 5,951 9,830 8,931 14,157 5,133 5,304 3,720 10,555 818 4,526 5,211 August. 24,744 6,084 9,833 8,827 14,141 5,217 5,283 3,641 10,603 867 4,550 5,186 September.. 24,973 6,308 9,853 8,811 14,408 5,440 5,316 3,652 10,565 869 4,538 5,159 October 25,292 6,559 8,795 14,679 5,629 5,402 3,649 10,612 929 4,537 5,145 November-. 25,476 6,762 9,964 8,751 14,864 5,804 5,432 3,628 10,612 957 4,532 5,123 December... 25,492 6,877 9,941 8,674 14,965 5,937 5,424 3,604 10,527 940 4,517 5,071 1933—January 25,641 7,050 10,023 8,568 15,116 6,109 5,470 3,537 10,525 941 4,553 5,031 February *..- 24,978 6,722 9,847 8,409 14,645 5,842 5,368 3,435 10,333 4,479 4,974 i Central reserve city banks only. * March and April data not available. Back figures.See Annual Report for 1931 (table 49). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

348 FEDREAL RESERVE BULLETIN JUNE 1933 ALL BANKS IN THE UNITED STATES—LOANS AND INVESTMENTS [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] All banks Member banks Nonmember banks Mutual savings banks Other nonmember banks Date Total Loans Invest- Total Loans Investments ments Invest- Invest- Total Loans ments Total Loans ments 1928—June 30. 57,265 39,464 17,801 35,061 24,303 10,758 9,242 5,518 3,723 12,962 9,643 3,320 Oct. 3- 57,219 39,671 17,549 34,929 24,325 10,604 19,242 i 5,518 13,723 12,049 9,828 3,222 Dec. 31. 58,266 40,763 17,504 35,684 25,155 10,529 9,390 5,694 13,192 9,913 3,279 1929—Mar. 27. 58,019 40,557 17,462 35,393 24,945 10,448 i 9,390 15,694 i 3,696 13,236 9,918 3,31? June 29. 58,474 41,512 16,962 35,711 25,658 10,052 9,556 5,892 3,664 13,207 9,961 3,24& Oct. 4__ 58,835 42,201 16,634 35,914 26,165 9,749 i 9,556 15,892 13,664 13,366 10,144 3,221 Dec. 31. 58,417 41,898 16,519 35,934 26,150 9,784 9,463 5,945 3,518 13,020 9,803 3,217 1930-Mar. 27. 57,386 40,686 16,700 35,056 25,119 9,937 »9,463 15,945 i 3,518 12,868 9,623 3,245 June 30_ 58,108 40,618 17,490 35,656 25,214 10,442 9,747 6,009 3,739 12,706 9,395 3,309 Sept. 24. 57,590 39,715 17,875 35,472 24,738 10,734 »9,747 16,009 13,739 12,371 8,968 3,402 Dec. 31. 56,209 38,135 18,074 34,860 23,870 10,989 9,987 6,068 3,920 11,362 8,196 3,165 1931—Mar. 25. 55,924 36,813 19, 111 34,729 22,840 11,889 19,987 i 6,068 13,920 11,208 7,906 3,302 June 30. 55,021 35,384 19,637 33,923 21,816 12,106 10,506 4,337 10,593 7,399 3,194 Sept. 29 53,365 33,750 19,615 33,073 20,874 12,199 i 10,506 i 6,169 i 4,337 9,786 6,707 3,079 Dec. 31. 49,704 31,305 18,399 30,575 19,261 11,314 10,488 6,218 4,270 8,641 5,827 2,814 1932—June 30. 46,071 27,834 18,237 28,001 16,587 11,414 10,316 6,130 4,186 7,755 5,117 2,637 Sept. 30 45,852 26,985 18,867 28,045 15,924 12,121 i 10,316 » 6,130 14,186 7,491 4,931 2,560 Dec. 31. 44,946 26,063 18,883 27,469 15,204 12,265 10,182 6,079 4,103 7,295 4,780 2,515 i Figures of preceding call carried forward. ALL BANKS IN THE UNITED STATES—DEPOS- NUMBER OF BANKS ITS, EXCLUSIVE OF INTERBANK DEPOSITS [All banks in the United States; includes national banks, State com- [In millions of dollars. Includes national banks, State commercial mercial banks and trust companies, mutual and stock savings banks, banks and trust companies, mutual and stock savings banks, and all and all private banks under State supervision] private banks under State supervision] Nonmember Nonmember banks Member banks banks Member Date All banks banks Mutual Other Date Total Mu- Other s b a a v n i k n s g b n e o r n b m a e n m ks - Total ti N on a a - l State t s in u a g a v s l - m n b o e e m n r - banks banks 1928—June 30. 53,398 32,133 8,653 12,612 Oct. 3__ 53,720 32,138 i 8,653 12,929 Dec. 31. 56,766 34,826 8,849 13,091 1928—June 30- 25,941 8,929 7,685 1,244 615 16,397 Oct. 3—. 25,828 8,896 7,670 1,226 i 615 16,317 1929—Mar. 27. 54,545 33,215 18,849 12,481 Dec. 31— 25,576 8,837 7,629 1,208 612 16,127 June29. 53,852 32,284 12,584 Oct. 4-_ 55,180 33,004 i 8,983 13,193 1929—Mar. 27.. 25,341 8,755 7,569 1,186 1612 15,974 Dec. 31. 55,289 33,865 8,916 12,507 June 29- 25,110 8,707 7,530 1,177 611 15,792 Oct. 4—. 24,951 8,616 7,468 1,148 i 611 15,724 1930-Mar. 27. 53,185 32,082 18,916 12,187 Dec. 31-. 24,630 8,522 7,403 1,119 609 15,499 June 30. 54,954 33,690 9,197 12,067 Sept. 24. 52,784 31,839 i 9,197 11,748 1930-Mar.27.-. 24,223 8,406 7,311 1,095 1609 15,208 Dec. 31. 53,039 32, 560 9,507 10,972 June 30 23,852 8,315 7,247 1,068 606 14,931 Sept. 24.... 23,590 8,246 7,192 1,054 1606 14,738 1931—Mar. 25. 51,427 31,153 i 9,507 10,767 Dec. 31—. 22,769 8,052 7,033 1,019 14,114 June 30. 51,782 31,566 10,017 10,199 Sept. 29. 49,152 29,469 U0,017 9,666 1931—Mar. 25.- 22,372 7,928 998 1603 13,841 Dec. 31. 45,821 27,432 10,105 8,284 June 30 21,903 7,782 6,800 982 600 13,521 Sept. 29— 21,294 7,599 6,653 946 1600 13,095 1932— June 30. 41,963 24,755 10,020 7,188 Dec. 31— 19,966 7,246 878 597 12,123 Sept. 30. 41,942 24,903 i 10,020 7,020 Dec. 31. 41,643 24,803 10,022 6,818 1932—June 30.. 19,046 6,980 6,145 835 594 11,472 Sept. 30. 18,794 6,904 6,080 824 1594 11,296 Dec. 31- 18,390 6,816 6,011 805 594 10,980 i Figures of preceding call carried forward. i Figures of preceding call carried forward Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1933 FEDERAL RESERVE BULLETIN 349 REPORTING MEMBER BANKS IN 90 LEADING CITIES1 [In millions of dollars] 89 other leading Total—90 leading cities New York City cities Loans and investments Loans and investments Month or date Total L on o a s n e s - o A th l e l r Investments r a o b t B w a F n o in k r .R - g s s . Total L on o a s n e s - o A th l e l r Investments r a o b t B w a F n o i r n k . - R g s s . a m T l n v o e d o e a s n t n a i t t n - s s l - r a o b t B w a F n o in r k . - R g s s . curities loans U.S. se- curities loans U.S. se- Total curities Total curities Mar. 1.. 15,900 3,727 4,554 7,619 4,631 414 6,512 1,640 1,439 3,433 2,338 183 9,388 231 Mar. 8.. 15,728 3,759 4,551 7,418 4,427 1,066 6,412 1,668 1,453 3,291 2,186 632 9,316 434 Mar. 15. * 16,017 » 3,762 2 4, 626 '7,629 2 4,580 849 6,523 1,674 1,483 3,366 2,253 483 »9,494 366 Mar. 22. 16,021 3,725 4,665 7,631 4,578 •379 6,484 ., 626 1,525 3,333 2,210 147 9,537 232 Mar. 29. 16,001 3,644 4,688 7,669 4,583 283 6,457 .,555 1,563 3,339 2,185 84 9,544 199 Apr. 5- 15,927 3,617 4,640 7,670 4,585 177 6,439 ,548 1,515 3,376 2,215 18 159 Apr. 12. 15,887 3,584 4,661 7,642 4,584 168 6,455 ,535 1,557 3,363 2,208 27 9,432 141 Apr. 19. 15,876 3,583 4,627 7,666 4,635 158 6,439 ,538 1,535 3,366 2,236 23 9,437 135 Apr. 26. 16,048 3,638 4,703 7,707 4,678 124 6,627 1,611 1,614 3,402 2,269 9,421 124 May 3- 16,288 4,706 7,884 4,909 129 6,753 1,676 1,615 3,462 2,353 9,535 129 May 10. 16, 318 3,715 4,689 7,914 4,908 80 6,790 1,711 1, 594 3,485 2,357 9,528 80 May 17. 16, 346 3,724 4,697 7,925 4,934 85 6,847 1,735 1,617 3,495 2,378 9,499 85 May 24. 16,329 3,648 4,704 7,977 4,963 78 6,786 1,663 1,624 3,499 2,384 9,543 78 May 31. 16,426 3,713 4,772 7,941 4,948 76 6,933 1,733 1,694 3,506 2,429 9,493 76 1 See note on p. 273, May BULLETIN, explaining the basis on which these figures have been compiled. 8 On Mar. 9 a member bank in Chicago took over assets and assumed deposit liabilities of a nonmember bank aggregating approximately $135,000,000. BROKERS' LOANS REPORTED BY THE NEW YORK STOCK EXCHANGE MADE BY REPORTING MEMBER BANKS IN N.Y. CITY [In millions of dollars. Monthly data are averages of weekly figures] [Net borrowings on demand and on time. In mDlions of dollars] For ac- For count of For ac- Month or date Total own ac- out-of- count of From New From private count town others Total an Y d o t r r k u b st a n co k m s - b fo a r n ei k g s n , b b r a o n k k e in rs g , banks * End of month panies agencies, etc. 1932-April 500 423 May 436 385 June 377 342 1932 1933 1932 1933 1932 1933 July 335 309 August 344 319 September. 409 385 January 512 359 374 270 138 90 October. .. 411 389 February 525 360 385 298 140 62 November. 354 336 March 633 311 391 247 142 64 December. 393 377 1933—January... 380 365 April 379 322 300 268 79 54 February.. 433 416 May 300 529 243 461 57 68 March 373 June 244' 194 49 April _. 374 May 578 555 J A u u ly gust 3 2 3 4 2 2 2 1 4 9 8 5 4 8 7 5 M M a a y y 3 10.... 5 56 1 4 2 4 5 9 4 1 1 SfiptftTnhftr 380 292 88 May 17 618 594 N O n c v to p b rn e b r. er 3 33 2 8 5 2 27 6 8 3 6 6 1 1 M M a a y y 3 2 1 4 6 5 3 6 5 3 5 61 3 1 9 December 347 279 68 i Member and nonmember banks outside New York City (domestic banks only). Back figures.—See Annual Reports for 1931 (table 63) and 1927 Back figures.—Bee Annual Report for 1933 (table 62), 1930 (table 56) (table 47). etc. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

350 FEDERAL RESERVE BULLETIN JUNE 1933 ACCEPTANCES AND COMMERCIAL PAPER BANKERS' ACCEPTANCES OUTSTANDING (DOLLAR CLASSES OF BANKERS' ACCEPTANCES (DOLLAR ACCEPTANCES) ACCEPTANCES) [In millions of dollars] [In millions of dollars] Held by Fed- Held by accepting Based Based eral Reserve banks on goods on banks stored in goods BasedBased U S n ta it te e s d sto in red Total For Held Im on ex- (ware- Dollar foreign End of month st o i a n u n g t d - - o F w o n r o co f a u c fo - n r t - Own Bills ot b h y ers End of month Total p i U n o . r t S o ts . p f U r o o . r S m ts . c h re o o d u r i s t e s) ch e a x n - ge s t h r c i i o p e u s p n o e - d r ac- eign Total bills bought shipped becount corre- between tween spond- domestic foreign ents points points 1931—January 1,520 89 447 571 134 437 412 OUTSTANDING February—. 1,520 85 456 550 151 398 429 March 1,467 123 431 472 131 341 440 1932—April 879 118 199 251 17 294 April 1,422 162 409 410 125 285 441 May 787 103 184 217 15 269 May 1,413 124 380 464 171 293 444 June 747 97 173 193 13 271 Juno . 1,368 95 341 554 196 357 379 July 705 85 162 178 15 265 July 1,228 39 243 668 232 436 278 August. ._ 681 76 152 192 11 250 August. 1,090 70 228 606 168 438 186 September 683 73 156 212 8 234 September.. 996 420 100 410 162 248 67 October .. . 699 81 157 222 6 231 October 1,040 647 99 230 112 118 63 November 720 81 161 237 9 232 November.. 1,002 418 126 296 125 171 161 December 710 79 164 230 10 228 December. . 974 305 251 262 131 131 156 1933—January 707 71 166 222 11 237 1932—January 961 119 314 332 159 174 195 February. . 704 71 174 219 9 231 February... 919 76 312 343 175 168 189 March 671 73 175 184 8 230 March 911 36 335 377 155 222 163 April 696 77 176 199 10 234 April 879 16 292 455 188 268 115 May . - 787 4 183 510 225 286 90 HELD BY P.R. BANKS June 747 36 98 518 200 318 96 (OWN ACCOUNT) * July 705 12 59 563 197 366 70 A Se u p g t u e s m t ber- 6 6 8 8 3 1 2 3 4 4 9 3 5 5 7 7 4 3 «1 1 5 9 9 8 4 3 1 7 4 6 6 5 4 5 1932— M Ap a r y il 16 5 (J) 2 (t) 2 6 3 1 1 5 October 699 3 39 605 199 406 52 June- 36 4 6 19 1 5 November- 720 4 32 655 268 386 28 12 1 1 5 1 4 December. _ 710 4 40 604 224 380 62 August. 3 1 1 2 September 2 (j) (i) 1 1 1 1933—January 707 2 41 626 256 370 38 October . 3 2 1 1 February.. _ 704 307 30 325 201 124 42 November 4 (*) 3 1 March 671 280 45 261 153 108 85 December 4 (3) 1 2 1 April .. — 697 164 43 404 206 199 86 May 13 36 1933—January 2 1 1 February .. 307 31 58 105 5 107 March 280 33 56 87 4 97 «Corrected. April . 164 20 35 38 2 66 Figures for acceptances outstanding (and held by accepting banks) from American Acceptance Council. i Total holdings of Federal Reserve banks include a small amount of Back figures.—See Annual Reports for 1931 (table 70), 1930 (table 64), unclassified acceptances. 1929 (table 58), and 1928 (table 61). > Less than $500,000. Back figures.—See Annual Reports for 1931 (tables 67 and 15), 1930 (tables 61 and 14), etc. ACCEPTANCES PAYABLE IN FOREIGN CURRENCIES- HOLDINGS OF FEDERAL RESERVE BANES COMMERCIAL PAPER OUTSTANDING [In thousands of dollars] [In millions of dollars} End of month 1930 1931 1932 1933 End of month 1930 1931 1932 1933 January... 1,035 36,119 33,444 January... 404 327 108 85 February.. 1,038 23,958 33,478 28,997 February.. 457 315 103 84 March 1,040 1,063 30,778 24,788 March 529 311 106 72 April 1,054 1,074 30,736 7,181 April 553 307 108 64 May 1,058 1,073 30,837 6,981 May 541 305 111 June 1,064 10,551 30,762 June 527 292 103 July 1,065 34,371 30,645 July- 528 289 100 August 1,071 145,215 30,834 August 526 271 108 September. 1,075 48,804 30,849 September. 513 248 110 October- 21,583 33,501 30,659 October 485 210 113 November. 31,587 30,652 November. 448 174 110 December. 35,983 33,429 29,489 December.. 358 118 81 Back figures.—See Annual Reports for 1928 (table 12), 1927 (table Back figures.—See Annual Reports for 1931 (table 66) and 1930 (table 12), 1926 (table 24), etc. 60). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1933 FEDERAL RESERVE BULLETIN 351 FEDERAL RESERVE BANE RATES OPEN-MARKET RATES DISCOUNT RATES RATES IN NEW YORK CITY {Rates on rediscounts for and advances to member banks under sections 13 and 13 (a) of the Federal Reserve Act] Prevailing rate on— Average rate Average yield Rate in Date estab- Previous Federal Reserve bank e J f u fe n c e t 1 o 0 n lished rate Call loans « U.S. P B N h o e i w s l t a o d n Y e o lp rk h . i — a- 3 2H J J M u u a n n y e e 2 8 1 6 , , , 1 1 1 9 9 9 3 3 3 3 3 3 Month or week m m p P 4 c o e a r o n r p t i m o c m t e i h r - a e 6 s , l a P a b c n e a r c 9 i r c n e m s 0 e k p ' s e - t , - d l T o a i a 9 y m n 0 s s e 8 , New ne R w e- al c T c n e a u a r o r n e t r t t e i y a d e f s s s i , - - b T o u r n e ry a d s s - ' days 3 to 6 Cleveland 3 June 10,1933 months Richmond Jan. 25,1932 Atlanta Nov. 14,1931 Chicago 3 May 27,1933 1932 St. Louis 3 June 8,1933 April 2 -3 2.50 2.50 1.11 3.74 Minneapolis- 3H Sept. 12,1930 May 2.50 2.50 .31 3.77 Kansas City.. Oct. 23,1931 June 2.50 2.50 «.34 3.78 Dallas Jan. 28,1932 July H 1H-1H 2.08 2.08 .22 3.65 San Francisco, June 2,1933 August 2 -2H 2.00 2.00 .14 3.57 September 2 - H IK-1H 2.00 2.00 «.O3 3.54 October 1.35 1.35 3.54 Back figures.—See Annual Report for 1931 (table 36). November 1.00 1.00 3.55 The following special rates are also in effect at all December 1H-1H H 1.00 1.00 «.O4 3.48 Federal Reserve banks: Percent January HrH 1.00 1.00 .07 3.39 Advances to member banks under sec. 10 (b) of the Federal Reserve act, as amended by sec. 402 of the act of Mar. 9,1933 5 February 1.00 1.00 .01 3.47 March 3.27 3.32 «1.34 3.58 Ad 4 v 04 an o c f e t s h e to a c n t o o n f m M em ar b . e 9 r ,1 b 9 a 3 n 3 k , s a s a n a d m e t n ru d s e t d c b o y m t p h a e n a ie c s t o u f n d M e a r r. s e 2 c 4 . , April 2 -ZH 1.29 1.37 .45 3.55 1933 5 May 2 -2H l -IK 1.00 1.00 .29 3.47 Week ending- Discounts for individuals, partnerships, and corporations under the third paragraph of sec. 13 of the Federal Reserve act, as April 29 2 - H l -I; 1.00 1.00 .41 3.56 amended by sec. 210 of the act of July 21,1932 6 May 6 2 -2K 1.00 1.00 .39 3.54 Advances to individuals, partnerships, and corporations secured May 13 2 -2)4 1.00 1.00 .34 3.47 by direct obligations of the United States under the last para- May 20 2 -2M 1.00 1.00 .21 3.46 graph of sec. 13 of the Federal Reserve act, as amended by sec. May 27 2 -2)4 1.00 1.00 .23 3.44 403 of the act of Mar. 9, 1933 _ 4^ BUYING RATES ON ACCEPTANCES * Stock exchange call loans; new and renewal rates. 1 Stock exchange 90-day time loans. [Buying rates at the Federal Reserve Bank of New York] 13 issues—3%, 3H, 4 percent; yields calculated on basis of last redemp. tion dates—1947,1956, and 1954. 4 Change of issues on which yield is computed. Rate in Maturity effect on Date estab- Previous Back figures.—See Annual Report for 1931 (tables 39 and 40), 1930 June 10 lished rate (tables 36 and 37), 1929 (tables 35 and 36), etc. RATES CHARGED CUSTOMERS BY BANES IN 1-15 days... 2 Mar. 22,1933 2H PRINCIPAL CITIES 16-30 days.. 2 .—do 31-45 days.. 2 do [Weighted averages of prevailing rates] 46-60 days.. 2 — .do 9 6 1 1 - - 1 9 2 0 0 d d ay a s y _ s. . 2 2 H . — .. . . d d o o 2% New York City a 8 n d o th ea e s r te n r o n r t c h i e ti r e n s 27 w s e o st u e t r h n e r c n i ti a e n s d 121-180 days ..._do 3 Month 1931 1932 1933 1931 1932 1933 1931 1932 1933 NOTE.—Rates on prime bankers' acceptances. Higher rates may be charged for other classes of bills. January 4.24 4.71 4.12 5.07 4.89 5.50 5.61 5.60 Back figures.—See Annual Reports for 1931 (table 37) and 1928 (table February 4.31 4.71 4.11 4.63 5.13 4.84 5.43 5.61 5.56 35). March 4.20 4.72 4.88 4.62 5.14 5.39 5.40 5.64 5.66 April 4.17 4.69 4.33 4.57 5.10 5.09 5.36 5.63 5.68 May 4.11 4.55 4.24 4.55 5.14 4.99 5.26 5.64 5.66 June 4.13 4.61 4.49 5.13 5.34 5.62 July 4.05 4.42 4.48 5.05 5.30 5.63 August. __ 3.97 4.45 4.47 5.12 5.28 5.68 September. .. 3.93 4.30 4.48 5.03 5.32 5.63 October 4.27 4.35 4.62 4.96 5.38 5.56 November- 4. #7 4.12 4.87 4.88 5.53 5.55 December... 4.64 4.22 4.91 4.88 5.56 5.60 Back figures.—See Annual Report for 1931 (table 42). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

352 FEDERAL RESERVE BULLETIN JUNE 1933 SECURITY PRICES AND SECURITY ISSUES SECURITY PRICES [Index numbers of Standard Statistics Co. Monthly data are averages of weekly flguresj Common stocks (1926=100) Pre- Selected groups of industrial issues Month or date Bonds1 ferred stocks* Total In tr d ia u l s- R ro a a i d l- P u u ti b li l t i y c m A o u b to il - e B e m q i u n e u i g n l i d p t - - C st h o a r i e n C i h c e a m l - b C a p r o n a e d p r ss - e m t E r q l i e u e c n c i a p t - l - c M e h r i a y n - - Oil Steel T ti e l x e - Number of issues 60 20 421 351 33 37 13 12 16 11 8 4 10 15 10 28 1932—March '83.7 '103. 2 57 64 32 93 65 29 58 85 30 77 47 45 32 31 April '80.2 94.2 44 42 22 73 34 22 49 61 22 67 37 38 23 26 May '76.0 90.3 40 33 17 68 30 20 42 52 20 52 33 39 20 23 June '72.8 83.6 34 34 14 26 18 35 48 17 40 29 37 16 20 July '75.1 85.3 36 36 16 55 26 19 36 60 20 43 30 42 18 22 August '84.3 98.6 63 52 29 84 45 30 49 75 38 73 44 55 33 33 September _ . '87.0 101.8 68 66 35 91 64 34 53 83 47 78 48 64 42 39 October ' 85.2 99.8 50 48 28 81 43 28 48 74 34 63 42 47 33 33 '83.1 97.4 48 45 26 78 40 25 47 71 32 60 39 47 28 30 December '82.2 95.4 47 45 26 80 40 25 47 76 26 66 38 46 26 28 ! 933—January 84.1 97.8 49 46 28 82 42 25 46 82 29 61 39 46 27 27 February . .. 82.6 95.7 45 42 27 73 38 23 43 74 28 54 39 42 24 26 March 76.7 93.1 43 42 26 67 34 22 40 72 29 52 37 41 23 24 April 75.4 95.7 48 49 26 64 42 28 44 82 39 61 43 47 32 28 May 82.0 103.3 63 65 38 79 68 45 54 104 55 84 57 58 51 43 May 3 78.1 100.3 58 60 34 72 60 39 52 96 54 79 52 53 46 36 May 10 79.9 100.7 61 63 36 76 67 41 54 100 52 82 54 58 49 39 May 17 82.7 103.1 63 65 37 81 68 45 54 104 52 83 57 57 51 45 Mav 24 84.1 105.0 65 67 39 82 71 47 55 107 54 83 59 60 52 45 May 31 85.0 107.5 69 72 42 85 72 54 57 112 63 91 64 65 56 51 ' Revised. i Average price of 60 high-grade bonds adjusted for differences in coupon rate and maturity. 120 high-grade industrials; average price. Back figures.—See (for principal series) Annual Report for 1931 (table 129). CAPITAL ISSUES UNITED STATES GOVERNMENT SECURITIES [Long-term; i. e., 1 year or more. In millions of dollars] [In millions of dollars] New issues Re- Outstanding at end Increase or decrease fund- of month (—) during month Domestic ing Total issues Year and month m e a ( f i e d o g n s o r n d t - - i ) c t T a o l - ' S n m a p t i n a c a u d l i t - - e B n a o o C n t n d o e d s r s po S r t a o te cks F ei o g r n - m e a ( f i o e d n g s r o d n - t - ) ic Month Total B n a o o n n t d e d s s C i b c a e a i n r l t t d l e i s f s - Total B n a o o n t n d e d s s C i b c a e a i n r l t d t l e i s s f- 1925 6,201 5,125 1,352 2,452 1,153 1,076 925 1931 1926 6,314 5,189 1,344 2,667 1,087 1,125 1,046 Total (12 months). 1,754 638 1,116 1927 7,556 6,219 1,475 3,183 1,474 1,337 2,220 • > • 1928 8,040 6,789 1,379 2,385 2,961 1,251 1,858 1932 1929 10,091 9,420 1,418 2,078 5,924 671 1,422 January 2,413 10 -23 1930... . 6,909 6,004 1,434 2,980 1,503 905 711 February 2,718 305 306 1931 3,099 2,860 1,235 1,240 311 229 949 March 3,088 370 370 1932 1,165 1,157 755 305 20 8 583 April 3,184 97 1 96 1932- S J J N A O D M u u e u c o e a l n p t y g c v y e o t e u e e b m s m m e t r b b b e e e r r r . - - . 1 1 9 9 6 4 7 7 0 2 1 4 3 4 8 5 6 4 1 1 9 9 6 4 0 7 7 2 1 4 0 3 4 8 3 4 8 2 3 6 3 9 7 2 4 5 4 3 6 9 4 8 6 2 4 4 9 6 7 6 2 5 7 0 0 2 0 2 2 4 1 3 0 0 0 2 2 0 1 1 3 6 5 4 3 7 3 0 2 4 7 3 2 6 5 8 J J N A S M O D u u e o u e c a l n p c y t g v y e o t e u e e b m m s m e t b b r b . e e e r r r 2 3 3 3 3 2 3 2 , , , , , , , , 4 3 4 9 6 5 6 0 1 0 4 8 2 8 0 5 1 4 6 9 6 0 8 3 - 4 4 4 5 1 1 - 2 6 4 3 3 3 8 9 8 1 2 2 8 6 9 -2 2 3 8 6 7 7 3 1 9 2 1 0 4 4 6 7 9 0 8 - - - 2 2 3 2 1 2 - 4 9 1 9 2 3 0 4 9 6 9 7 5 7 6 1933—January 65 65 33 19 3 0 45 Total (12 months). 2,920 2,430 490 February... 20 20 17 1 0 0 37 March 16 16 13 0 3 0 3 1933 April 25 25 8 16 1 0 20 January.. 20,454 17,528 2,926 6 May 44 44 40 1 0 60 February. 20,685 17,806 2,879 231 278 -47 March 20,991 17,805 3,186 306 -1 307 » Includes issues of Federal land banks and Federal intermediate credit April 21,087 17,806 3,281 96 1 95 banks, not shown separately. May 21,469 18,371 382 565 Sources.—For domestic issues: Commercial and Financial Chronicle; for foreign issues (issues publicly offered) annual totals are as finally NOTE.—Figures relate to interest-bearing public debt; matured and reported by Department of Commerce, while monthly figures are as noninterest-bearing debt amounted to $385,000,000 at the end of May compiled currently and are subject to revision. 1933. Figures include obligations held in Government trust funds Back figures.—See '(for figures of new issues—annual and quarterly Bonds and notes are long-term—i. e., 1 year or more (figuring from basis) Annual Report for 1931 (table 128). date of issue); certificates and bills, shorter term. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1933 FEDEEAL RESERVE BULLETIN 353 PRODUCTION, EMPLOYMENT, CAR LOADINGS, AND COMMODITY PRICES [Index numbers; 1923-25 average*-100. The terms adjusted and unadjusted refer to adjustment for seasonal variation] Industrial production * Construction contracts awarded (value) » Fac- Factory em- tory Freight-car ployment J pay loadings«• Corn- Year and Total» Manufactures1 Minerals» Total Residential All other rolls1 mod' month prices5 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 77 63 44 79 107 98 84 139 1920 87 87 89 63 30 90 108 118 91 154 1921 67 67 70 56 44 65 82 77 79 98 1922 85 86 74 79 68 88 90 81 87 97 1923 101 101 105 84 81 86 104 103 100 101 1924 - ,. 95 94 96 94 95 94 96 96 97 98 1925 104 105 99 122 124 120 100 101 103 104 1926 108 108 108 129 121 135 101 104 106 100 1927 106 106 107 129 117 139 99 102 103 95 1928 111 112 106 135 126 142 97 102 103 97 1929 119 119 115 117 87 142 101 108 106 95 1930 — 96 95 99 92 50 125 88 87 92 86 1931 81 80 84 63 37 84 74 66 75 73 1932 64 63 71 28 13 40 62 45 56 65 1929 August-~ 122 121 122 122 121 115 129 122 84 86 166 152 104 103 111 116 107 96 September 123 121 123 121 127 118 112 110 73 73 144 140 105 102 112 121 106 96 October. _ 121 118 119 119 127 116 104 107 67 67 135 139 103 101 111 118 104 95 November 108 110 107 110 114 110 94 103 66 67 116 132 99 99 103 102 102 94 December 96 103 93 101 110 116 84 102 53 61 109 136 95 97 99 89 102 93 1930 January.. 103 106 102 105 108 no 78 95 46 56 104 128 93 96 94 89 100 93 February. 109 107 110 107 104 108 89 104 44 49 126 148 93 94 98 91 99 91 March.... 106 104 109 104 91 98 102 102 54 52 141 144 93 93 98 90 96 90 April 107 104 110 104 94 104 113 101 62 53 156 140 93 92 97 93 97 90 May _ . 105 102 106 101 102 104 125 105 61 52 178 148 91 91 94 97 96 89 June 99 98 98 97 103 102 116 99 54 49 166 140 89 90 91 95 93 87 July 91 93 89 92 100 100 107 95 48 47 155 135 86 87 83 95 92 84 August... 90 90 88 89 101 96 85 81 48 49 115 106 85 84 82 96 89 84 September 92 90 90 89 101 94 82 81 52 52 108 105 86 83 83 99 87 84 October.. 90 88 87 86 105 95 75 78 51 52 94 99 84 82 81 97 86 83 November 84 86 82 85 96 92 68 76 46 48 86 99 81 81 75 86 84 81 December 77 84 74 82 89 93 59 73 37 43 77 98 79 80 74 74 84 80 1931 January.. 82 84 81 83 87 89 58 71 37 44 75 93 76 78 68 74 82 78 February. 87 86 88 86 84 87 68 79 42 47 89 104 77 78 73 74 80 77 March.... 90 87 91 87 82 89 77 77 50 47 98 100 78 78 75 75 80 76 April 90 88 91 87 83 91 82 73 52 44 107 96 78 78 74 77 80 75 May 89 87 90 87 84 87 78 65 47 40 104 85 77 78 72 79 79 73 June 83 83 83 82 86 87 74 63 41 37 101 84 75 76 68 77 77 72 July 80 82 79 82 86 86 68 61 36 35 94 82 74 75 64 78 76 72 August... 78 78 77 78 82 79 63 59 32 33 87 81 74 74 64 76 72 72 September 77 76 76 75 83 78 59 59 32 32 81 80 75 73 62 78 69 71 October.. 75 73 72 71 90 83 52 55 29 30 71 76 71 70 59 78 69 70 November 72 73 70 71 84 81 43 49 26 27 57 67 69 69 56 70 68 70 December 68 74 66 73 79 84 30 38 20 23 39 50 68 69 56 61 69 69 1932 January.. 71 72 70 71 74 77 25 31 16 19 33 41 66 68 52 58 64 67 February. 71 69 70 68 75 78 23 27 15 17 30 35 67 68 54 59 62 66 March 68 67 66 64 77 84 26 26 16 15 35 36 66 66 52 58 61 66 April 64 63 63 61 72 79 31 27 16 14 43 38 64 64 49 57 59 66 May 61 60 60 58 65 67 31 26 14 12 45 37 61 62 46 53 54 64 June 59 59 59 58 61 63 32 27 12 11 47 39 59 60 43 52 52 64 July 56 58 55 57 62 64 31 27 12 11 46 40 57 58 40 51 51 65 August... 59 60 58 59 66 65 32 30 11 12 48 45 59 59 40 53 51 65 September 67 66 66 66 73 70 30 30 12 12 45 44 62 60 42 61 54 65 October-. 68 67 66 65 80 74 28 29 12 12 41 43 62 61 44 65 57 64 November 65 65 63 63 78 75 24 27 10 10 35 41 61 61 42 58 57 64 December 60 66 58 64 72 76 22 28 8 9 33 43 60 61 41 52 58 63 1933 January.. 64 65 63 64 71 73 18 22 7 8 27 33 58 59 39 51 56 61 February- 65 64 63 62 76 79 16 19 7 8 23 27 59 59 40 51 54 60 March 61 60 59 57 74 81 14 14 8 8 18 18 57 57 37 48 50 60 April >68 *>67 *>68 *66 65 72 16 14 11 10 19 17 58 58 39 51 53 60 Preliminary. • Average per working day. 1 For indexes of groups and separate industries see p. 408; for description see BULLETIN for February and March 1927; for back figures see BULLETIN for March 1932, p. 194. 13-month moving average, centered at second month; for description and back figures see BULLETIN for July 1931, p. 358. » For indexes of groups and separate industries see p. 409; for description and back figures see BULLETIN for November 1929 and November 1930. 4 For indexes of groups see p. 354; for back figures see BULLETIN for February 1931, p. 108. 1 Index of Bureau of Labor Statistics; 1926= 100. Index numbers for groups of commodities are given on p. 410. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

354 FEDERAL RESERVE BULLETIN JUNE 193a MERCHANDISE EXPORTS AND IMPORTS [In millions of dollars] Merchandise exports Merchandise imports Excess of exports Month 1929 1930 1931 1932 1933 1929 1930 1931 1932 1933 1929 1930 1931 1932 1933 January 488 411 250 150 121 369 311 183 136 96 119 100 66 15 25 February 442 349 224 154 102 369 282 175 131 84 72 67 49 23 18 March . _ 490 370 236 155 108 384 300 210 131 95 106 69 26 24 13 April - 425 332 215 135 *105 411 308 186 127 »88 15 24 29 9 May 385 320 204 132 400 285 180 112 —15 35 24 20 June 393 295 187 114 353 250 173 110 40 44 14 4 July 403 267 181 107 353 221 174 79 50 46 6 27 August 381 298 165 109 369 218 167 91 11 79 —2 18 September — - 437 312 180 132 351 226 170 98 86 86 10 84 October - - 529 327 205 153 391 247 169 105 137 80 36 48 November - 442 289 194 139 338 204 149 104 104 85 44 34 December 427 275 184 132 310 209 154 97 117 66 30 35 Year 5,241 3,843 2,424 1,611 4,399 3,061 2,091 1,323 842 782 334 289 v Preliminary. DEPARTMENT STORES—SALES, STOCKS FREIGHT-CAR LOADINGS, BY CLASSES [Index numbers; 1923-25 average—100] [Index numbers; 1923-25 average—100] Index of sales > Index of m s o to n c th k ) s (end of 1932 1933 Dec. Jan. Feb. Mar. Apr, Month fo A v r a d s r j e i u a a s t s i t o e o n d n al se j W a u s s i o t t n m h a o e l u n a t t d- fo A v r a d s r j i e u a a s t s i t o e o n d n al se j W u as s i o t t m n h a o e l u n a t t d- I Adjusted for seasonal variation Total 58 56 54 50 53 1932 1933 1932 1933 1932 1933 1932 1933 Coal 69 56 65 55 53 Coke 45 40 45 35 29 Grain and grain prod- January 78 60 64 49 75 58 66 52 ucts 59 61 58 69 F M e a b r r c u h ar . y .. 7 7 8 2 6 5 0 7 6 6 4 9 4 5 9 0 7 7 3 0 • •• • 5 57 4 6 7 9 3 5 5 5 4 L Fo iv r e e s st t ock products 5 2 0 2 5 2 0 2 4 1 9 9 4 2 5 0 5 2 3 2 Ore 20 20 20 23 17 April 79 67 74 68 69 53 72 55 Miscellaneous 57 57 51 47 52 May 72 *68 72 P68 68 69 Merchandise i 69 69 66 62 63 June - - - 69 66 67 65 July 65 46 64 59 Without" seasonal'ad justment August 65 49 61 59 September 68 71 60 63 Total... 52 51 51 48 51 N O o ct v o e b m er b er - - 6 6 9 3 7 7 5 3 6 6 1 1 6 6 7 9 C C G o o ra k a i e l n . .. a . nd gra — in prod 4 7 8 4 4 6 4 3 7 5 1 2 5 3 1 5 4 2 4 7 December 60 106 60 56 ucts 57 59 56 58 76 Year 69 66 L Fo iv r e e s st t o p c r k o ducts _. 5 1 0 8 5 2 3 0 4 1 6 9 3 2 9 1 5 2 0 4 Ore -~. 5 5 5 5 8 1 Based throug p h P o re ut l i o m n i n fi a g r u y r . e s of daily avera r g R e e s v a i l s e e s d — . with allowance M M i e s r c c e h l a la n n d e i o se u s ! 4 6 5 4 4 6 5 5 4 6 4 4 4 6 5 3 5 6 4 5 for changes from month to month in number of Saturdays and for 6 national holidays: New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas. Adjustment for sea- i In less-than-carload lots. sonal variation makes allowance in March and April for the effects Based on daily average loadings. Source of basic data: American upon sales of changes in the date of Easter. Railway Association. Back figures.—See BULLETIN for November 1930, p. 686. Back figures.—See BULLETIN for February 1931, pp. 108-110. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1933 FEDERAL RESERVE BULLETIN 355 FOREIGN BANKING AND BUSINESS CONDITIONS ANNUAL REPORT OF THE BANK FOR INTERNATIONAL SETTLEMENTS The third annual report of the Bank for short-sighted individualism which has been International Settlements, covering the year practiced in its operation commence all over ended March 31, 1933, was submitted by again. Mr. Gates W. McGarrah, president of the bank, It was in the field of monetary and financial to the general meeting of shareholders on restoration that many of the various inter- May 8, 1933. Sections of the report are given national conferences held during the year sugherewith: 1 gested or provided new functions for the bank. For the Bank for International Settlements, Thus, the Conference of Lausanne, after still the year has been an eventful one, during further subordinating the already secondary which, while the volume of its ordinary bank- reparation activities of the institution, placed ing business has necessarily been curtailed by upon it new tasks relating to the international the general falling off of international financial efforts to bring about monetary and financial transactions and the continued departure from recovery in connection with the World Congold of more and more currencies, culminating ference and the preparations therefor. These in the defection of the American dollar, never- tasks have been carried out concurrently with theless the scope of its general activities has the discharge of the routine business of the steadily broadened in sound directions. The bank, which has developed satisfactorily and widening of activities, aside from normal growth profitably notwithstanding the general crisis, in developing new contacts, has been the con- and the tasks are being continued without intersequence, primarily, of a year replete with ference with the gradual expansion of the international conferences, and, also, of the bank's work in promoting cooperation between rapid extension of chaotic conditions in the central banks. The report which follows deals international monetary system. In view of all with the multifarious phases of the bank's the events which have occurred, the bank's activity during the third year, against the board of directors determined to define the background of the chief events of an interposition of the bank on the fundamental cur- national financial character, such as gold rency problems facing the world and it unani- movements, the trend of interest rates, shortmously expressed the opinion, after due delib- term capital movements and those outstanderation, that in the last analysis "the gold ing features of currency policy which have standard remains the best available monetary directly affected the bank and especially mechanism" and that it is consequently affected those 25 central banks which are desirable to prepare all the necessary measures members of it. for its international reestablishment.2 On the whole, 1932 may be styled a year of The Bank for International Settlements is adaptation to changed conditions prevailing carefully examining these measures, insofar as in the economic and monetary situation and they lie within the power of central banks, one of some definite constructive effort. The and it becomes more and more evident with most important constructive measures were the passage of time that one of the useful roles taken or initiated at two periods—the first in the bank can play in the international financial February and the second in the last half of system is to serve as a central instrument of June and beginning of July. It was in Febthe banks of issue in assisting to coordinate the ruary that the Bank of England, after the reproper functioning of the gold standard; for payment of more than half of the large curthis standard will work no better in the future rency credits taken up in the previous sumthan in the past, if the unregulated anarchy mer, lowered its discount rate from 6 to 5 which has prevailed in its application and the percent, and thereby gave the signal to the downward movement of interest rates which » In addition the report contains sections dealing with the Lausanne was continued all through the year in most Agreement of July 1932 (published in the BULLETIN for August 1932); the Preparatory Commission for the Monetary and Economic Confer- parts of the world. In the same month the ence; the Stresa Conference; trustee and agency functions of the bank; German Government put into effect a plan deposits and investments; share capital; net profits; and changes in the board of directors; together with a number of annexes showing allotment for the thorough reorganization of the large of shares in the capital stock of the bank; profit and loss account; trustee operations, etc. All amounts of money given in the report in Swiss German banks, which involved a considerable francs have been converted into dollars at par and then expressed in writing off of assets and the supply of new round figures. For earlier reports see BULLETIN for June 1932 and July 1931. capital with the aid of the Treasury and, in- > For full text of the board's resolution, see p. 364. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

356 FEDERAL RESERVE BULLETIN JUNE 1933 directly, of the Reichsbank. This reorganiza- During the year the total gold production of tion permitted the reopening of the German the world attained the high figure of $495,stock exchange, which had been closed for 7 000,000, thereby establishing a new record by months. In the United States the Glass- surpassing the production of the previous Steagall bill was adopted on February 27, peak year, 1915, by $27,000,000 and that of giving greater freedom to the Federal Reserve 1931 by $36,000,000. While it is to be expected banks and enabling them to alleviate the pres- that gold production should rise in a period of sure exerted by internal currency hoarding sharply falling prices and plentiful labor supply, and withdrawals of gold. On the basis of the the increase has exceeded even the most opprovisions of this new act, the reserve banks timistic forecasts. It has been most marked purchased Government securities in the open in the Union of South Africa and Canada, market to an amount which in June reached by far the largest percentage increase occurring $1,100,000,000, a sum then sufficient not only in the latter country. Production in the United to counterbalance withdrawals and hoarding, States, after having declined fairly steadily but also to provide member banks with sub- from 1915 to 1929, has risen again and at a stantial excess reserves. progressively greater rate during each of the At about the same time two further events of past 3 years. outstanding importance took place. The first was the conversion of more than £2,000,- ANNUAL GOLD PRODUCTION 000,000 of the public debt of Great Britain from a 5 percent on to a 3}£ per cent basis, which was Union of United announced in the second half of June and met A So fr u ic th a States Canada World with immediate response; such a measure was Year welcomed not only because it helped to alleviate Thousands of fine ounces Millions the British budget, but also for the downward of dollars influence which it exercised on long-term inter- 19151 9,096 4,888 918 22,594 467 est rates. Further, the successful outcome of 1923- 9,149 2,503 1,233 17, 786 368 the Lausanne Conference in July, the value of 1924- 9,575 2,529 1,525 19,050 394 1925- 9,598 2,412 1,736 19,031 394 which it is hard to overestimate, revealed will- 1926- 9,955 2,335 1,754 19,369 400 ingness by the reparation creditors—in the first 1 19 9 2 2 8 7 - . 1 1 0 0 , , 1 3 2 5 2 4 2 2 , , 1 2 9 3 7 3 1 1 , , 8 8 5 9 3 1 1 1 9 9 , , 4 5 4 8 6 3 4 4 0 0 2 5 place France-—to make very large concessions 1929_ 10, 412 2,208 1,928 19,585 405 1930- 10, 716 2,286 2,102 20,293 420 and it meant the elimination of one of the1931. 10,878 2,396 2,694 22,168 458 most serious political hindrances to economic 1932. 11, 559 2,513 3,051 23,884 494 recovery. 1 Record year prior to 1932. These are outstanding measures. But atten- Among the gold producing countries the tion must not be concentrated on them alone. influence of the new gold was particularly A close examination of developments would helpful in Canada. Since the departure of show that the large volume of international sterling from the gold standard, and the simulcredits was further reduced, that strenuous taneous depreciation of the Canadian dollar, efforts were made in many branches of public the gold production of the Dominion has been and private economy to balance revenue and bought by the Government at the prevailing expenditure, to establish equilibrium between market rate. The large production of 1932, costs and prices, to render assets more liquid, $63,000,000 at par, gave to the producing comto reach agreed arrangements for postponing or panies approximately $70,000,000 in Canadian scaling down debt payments, to overcome the currency, and greatly aided the Government in difficulties resulting from the liquidity crisis, meeting its maturing obligations punctually and to maintain control of the currency posiand in supporting the exchange. In the Union tion, even when foreign exchange restrictions of South Africa the production of gold made were, in the interests of trade, gradually repossible the maintenance of the gold standard laxed. One marked feature of the period was until the last week of 1932 when, however, the the unparalleled volume of gold movements. large outflow of funds caused by speculation depleted the reserves and forced the country to GOLD AND SHORT-TERM CREDIT MOVEMENTS suspend the gold standard. Under an agree- While the international movement of goods ment with the mines the South African Reserve registered an unprecedented decline in 1932,Bank had up to that time purchased the newly gold movements reached proportions never produced gold at par, which enabled the bank before experienced. within a short space of time to recover the losses Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1933 FEDERAL RESERVE BULLETIN 357 it incurred through the depreciation of sterling In the following table an attempt has been and to reconstitute its capital and reserves. made to indicate for each quarter of 1932 the Whereas production has increased, the de- amount of gold derived from production and mand for gold by the arts has fallen to a very from India and China, the amount of gold used low level and, even more important, India and by the arts, as well as the increase or decrease China, instead of absorbing a substantial part of gold in the reserves of central banks and of the newly mined gold, have continued to governments, in order to obtain a rough estiexport gold previously hoarded. In the 3 mate of the amounts hoarded and dehoarded months of October, November, and December in the different periods: 1931, gold to the value of nearly $96,500,000 was exported from India; during 1932, Indian gold exports amounted to a little more than Dehoard- $193,000,000, a sum not greatly inferior to the Increase ing(+) v $2 al 3 u 9 e , 0 o 00 f ,0 S 0 o 0 u . th African production, which was Millions of dollars V p J r O O IQ " I G f n ro o d m l i d a b G y u s o a e l r d d ts T IN M 6 A 1 f d ( ( e - + c \ r ) e P o as r e i h n o g o a r ( rd -) duc- and (esti- total gold (out- The great volume of "new" gold which be- tLiinonn China mated) re- side came available during 1932 from the mines and serves I a n n d d ia from India had its effect not only upon those China) countries in which it originated but also upon those to which it passed. The entire Canadian 1932 production was exported directly to the United First quarter 118 64 -12 170 +210 +41 Second quarter 122 44 -12 154 -151 -305 States, but that of South Africa was, as usual, Third quarter 127 58 —12 174 +345 +172 sold in London. In addition, almost 78 per- Fourth quarter 127 68 -12 183 +199 +15 cent of the gold exported from India was sold in London (approximately 19 percent being Although some of the figures included in the shipped directly to the United States and about above table are admittedly only estimates and 3 percent disposed of in the Netherlands and although the increase or decrease in reserves France). The bulk of the South African and may be influenced by the methods employed Indian gold offered in London was sold against for accounting gold in transit, etc., the figures gold currencies, usually dollars or francs, de- shown in the last column may be regarded as pending on whichever was the stronger. In sufficiently approximate to illustrate the movethe case of the South African sales a large part, ments during the year. The recovery of and in the case of the Indian sales practically sterling in January and February 1932, the all, of the proceeds received in these gold cur- reorganization of the banks in Germany, the rencies was thereafter sold for sterling. hopes for a spring revival of trade and in- It would seem as if the sterling acquired from dustry—all tended to sustain confidence during the sales of South African gold was on the whole the first quarter. The new gold which became limited to the amount needed for the current available during that period was allowed to requirements of South Africa in London, and reach the central banks and some gold even for that reason no extra support was given to came out of hoards. In the second quarter, the pound by the gold coming from that coun- under the influence of untoward happenings on try. The effect upon sterling of the Indian the financial markets, and in the absence of any gold exports was quite different. These exports clear evidence of better trade, disappointments enabled India not only to meet its foreign pay- soon were felt; apprehension for the dollar ments without resort to borrowing in London, brought about by legislative proposals of an as would otherwise probably have been the inflationary character and by the party struggle case, but also to reduce its liabilities and in- over the budgetary situation caused foreign crease its balances in sterling. In this way holdings in the United States to be converted very marked support was given to the pound into gold, and the pessimistic outlook prevailand through it to those currencies which more ing as to the possibility of solving the reparaor less follow the movements of the British tion question, all resulted in a sharp increase in exchange. The flow of Indian gold has, more- hoarding, so that not only did central banks over, provided an extra source of supply to receive no new gold but they actually lost met the extensive demands for European and several hundred millions from their reserves. American hoarding, which made themselves In June the withdrawals of gold from the felt intermittently during the year under review. United States came to an end for the year 1932; Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

358 FEDEKAL RESERVE BULLETIN JUNE 1933 at the same time the debt conversion scheme gold stock since the beginning of 1932 by the was launched in England and a gratifyingly equivalent of about $22,000,000 to meet foreign rapid settlement of reparations was reached at payments. With regard to countries other Lausanne. The public, impressed by these than those mentioned above, gold movements events, not only stopped hoarding, but, in have occurred on a very moderate scale; often addition, released substantial amounts of the no change has taken place throughout the year. previously hoarded gold which flowed back to It is now possible to show the combined the central banks. During the last quarter of effects on central bank reserves of the main the year, under the influence of reopened dis- factors which have influenced them since 1931, cussions about interallied debts and the break that is to say: the strain to which debtors were in the sterling exchange, confidence slowly exposed during the height of the liquidity waned, and a renewal of hoarding in the second crisis; the conversion into gold of foreign exhalf of November had by the end of the year change held by central banks; and the large almost reabsorbed the large amount de- supply of new monetary gold. The following hoarded in October. For the last quarter as a chart [omitted] sets out the development which whole, however, all the new gold available went has taken place. to monetary reserves. At the end of 1932 net foreign exchange The total increase in the monetary gold holdings of central banks amounted to only a reserves of central banks and governments for quarter of the amount they had reached in the 1932 was $603,000,000. This means that, in spring of 1931 before the outbreak of the spite of the hoarding which took place, mone- financial crisis. This decline is the outcome tary reserves received new gold during the year of two separate developments: in an amount 22 percent greater than the total (a) Central banks in debtor countries, which gold production of the record year in the history had accumulated foreign exchange, employed of the world. And although European central this exchange as a first line of defense for banks during the first half of 1932 converted meeting foreign payments when the need arose. more than $700,000,000 of their dollar holdings It may be estimated that perhaps in all an into gold, the gold reserves of the United States amount of about $482,500,000 was employed were only $6,000,000 smaller at the end of the for this purpose. year than they had been at the beginning. (6) Central banks which had at their dis- But in the first quarter of 1933 the anxiety posal foreign exchange not required for immecaused by the banking crisis led to a reduction diate payments have to a very large extent in American gold reserves, later, however, to be converted these holdings into gold. It would replenished as a result of a series of antihoard- seem that conversions under this head approxiing measures. mated some $965,000,000. The increase during 1932 in the gold holdings During 1932 a few central banks again of the central banks in France, the Netherlands, acquired foreign exchange but in the first and Switzerland alone amounted to about quarter of 1933 substantial conversions of $652,000,000, and thus exceeded by about foreign exchange into gold were again effected, $48,000,000 the increment to total gold reserves partly in connection with the anxiety caused in that year. The Bank of England also ac- by the American banking situation. quired gold in 1932, but, after the payment of It will be seen from the chart that the total the war debt installment due on December 15, monetary gold reserves held in Europe, the the bank's gold reserve fell below the figure at United States and Japan have risen by about which it had stood at the beginning of the year. $965,000,000 from March 1931, to the end of New acquisitions during the first few months of 1932. The combined monetary reserves, con- 1933—the period of the year when sterling is sisting of gold and foreign exchange, fell, howseasonally strong—have again increased the ever, by more than $579,000,000 as a result of gold holdings of the Bank of England to a figure the abrupt decline in foreign exchange holdings. exceeding £170,000,000. Other central banks, The new gold which has become available in countries not on gold, have shown tendencies has naturally tended to flow to the financially to add to their gold stocks. An increase of stronger countries, which, therefore, have on over $39,000,000 is registered in the holdings of balance not been involved in the decline. the State Bank of the Union of Soviet Socialist Experience has shown, however, that even the Republics in 1932 in spite of gold exports to country which possessed the largest gold Germany amounting to $46,000,000. On the holdings—the United States—has twice found other hand the Bank of Japan has reduced its that the legal provisions governing the utiliza- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1933 FEDERAL RESERVE BULLETIN 359 tion of its reserves were too inelastic in a period The increased elasticity of central bank of sudden movements; in consequence its reserves, to which I have just referred, is parmonetary authorities were given greater lati- ticularly desirable in order to enable the banks tude in their management. In other countries to cope successfully with the problems created liberalizing amendments have been made in by the large volume of short-term funds suscentral bank statutes. Thus, the minimum ceptible to rapid movement from one country legal ratio of the Austrian National Bank was to another. During the period covered by my reduced from 24 to 20 percent in August 1932. last report—April 1, 1931, to March 31, 1932— In Poland, the minimum legal ratio against monetary developments were largely deternotes and other sight liabilities, which had been mined by mass withdrawals of credits from 40 percent of gold and foreign exchange (of debtor countries, the total liquidation of interwhich 30 percent in gold), was, under the new national indebtedness reaching, within a single provisions adopted in February 1933, reduced year, the high total of approximately $15,400,to 30 percent of gold (alone) against notes and 000,000, a liquidation made possible partly by other sight liabilities in excess of 100,000,000 the new monetary credits arranged during that zloty ($11,000,000). year. In the following period the repayment In the course of the year I have on several of short-term credits continued, but the scale of occasions drawn the attention of the board of liquidation, even if exceptional compared with the Bank for International Settlements to these normal conditions, was smaller than in the changes in central bank statutes and have em- previous phase. Three outstanding series of phasized the great importance of a development transactions may be specially mentioned: The which enhances the power and freedom of advances made in August 1931 to the British action of central banks. The Preparatory market in support of sterling, already partially Commission for the Monetary and Economic repaid in February 1932, were finally extin- Conference was undoubtedly correct when it guished in the course of the year; the substanstated in its report that " present-day legisla- tial conversions of central bank dollar holdings tion in many countries renders much gold into gold, which began in the autumn of 1931, unavailable for international use/7 I fully came to an end in July 1932 but were resumed share the opinion of the commission that some in the first quarter of 1933 in consequence of steps can be taken which will permit more the domestic banking crisis; the advance to effective use of central bank reserves, although the Reichsbank, arranged through the Bank the note of warning sounded by the commission for International Settlements and amounting must also be borne in mind, namely that the originally to $100,000,000, was reduced by greater elasticity must not be taken by coun- several installments in 1932 and the first quarter tries with limited resources as an excuse for of 1933, the balance remaining being fully the building up of a large superstructure of repaid at the beginning of April 1933. currency and credit, for then the free margin It has been computed that the total internawould be dissipated, and the purpose of the tional short-term indebtedness outstanding reform—the strengthening of the position of at the end of 1932 amounted to $5,800,000,000 the central bank concerned—would not be and that approximately one half of this inachieved. More and more the monetary ex- debtedness represented liabilities which were in perience has demonstrated that the true use fact governed by standstill agreements, moraof gold in the modern world is to serve as a toria, exchange restrictions, etc. As regards medium of international payment when the these blocked accounts, some new facilities exchanges or the international balances are have been granted in several countries to foradverse; if the international gold standard is iegn creditors enabling them to dispose within to be reconstituted, as it must be, practice defined limits of such balances either for disshould take account of this lesson and central bursements in the debtor country (for instance banks should combat any conception that gold by tourists), or for purchases of capital assets, is properly employable as a store of wealth, or for certain payments in respect of so-called or that its primary object is to assure internal " supplementary exports", i.e., exports from convertibility of notes so that all who will may debtor countries which might not otherwise hoard gold coin on demand, to the detriment have been made. Though no final solution of the public good and of general economic can be expected from these minor measures, welfare. In this connection a more general they constitute steps in the right direction. employment of the gold bullion standard would Apart from the outstanding liquidations of appear desirable. short-term credits already mentioned, the flow 177784—33 3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

360 FEDEKAL RESERVE BULLETIN JUNE 1933 of funds from market to market has been sub- low figure. Sudden movements of this kind ject to certain abnormal forces which in many have, at times, caused the exchange rates of the respects have added to the difficulties of the countries affected to swing violently from one situation. It has been found, for instance, gold point to the other. How important it is that ordinary business balances have by force that monetary authorities should be fully inof circumstances been influenced by specula- formed about the short-term liabilities of their tive currents and form, so to say, a mass of markets is increasingly realized and some semispeculative funds. These balances have progress toward collecting such information been increased or reduced not only to meet has been made during the year. varying business needs, but also in anticipation of a further rise or fall in the exchanges, THE DOWNWARD TREND OF INTEREST RATES AND when currencies have fluctuated appreciably SOME OUTSTANDING FEATURES OF CURRENCY or fears have been entertained as to their POLICY stability. This development not only puts an extra strain on the individual trader, who is (a) The downward trend of interest rates.— compelled to form an opinion on complicated That 1932 was a year of adaptation to the exchange questions, but it also tends to provoke changed conditions resulting from a financial erratic streams of funds between different crisis superimposed on a business depression is markets; even if the resultant position over a nowhere more apparent than in the movement longer period may not be substantially affected, of interest rates. the day-to-day movements may be considerably During the financial crisis of 1931 central disturbed. banks with very few exceptions found it neces- A not inconsiderable movement of funds— sary to increase their discount rates, thus havand in this case of a more fundamental char- ing recourse to the classical means of defending acter—has arisen from the repurchase by na- their currencies and their liquidity positions. tionals in debtor countries of their govern- In many instances rates then reached higher ment and other bonds originally issued abroad. levels than those in force in the boom year of Market quotations have in many instances 1929. made such repatriation very profitable and In the latter half of 1931 some reductions there is no doubt that larger amounts would in rates were indeed made by a number of cenhave been bought back had it not been for the tral banks, but by those only which had apdifficulty of obtaining foreign exchange in plied rates so exceptionally high that even after countries where restrictions were in force. In the reductions they remained, as a rule, well a few cases such repurchases were facilitated by above the normal; the changes of the autumn the authorities in connection with stimulating of 1931 must, therefore, be regarded more as " supplementary exports." a reaction from exaggerated crisis rates than A converse movement has arisen in some as evidence of real improvement in the situacountries with depreciated exchanges; foreign tion. securities have been sold abroad, the seller The big downward movement, which was to making a book profit or avoiding a loss in his last throughout the year, started on February domestic currency. It is reported that part 18, 1932, with a reduction of the Bank of Engof the foreign exchange bought by the Exchange land rate from 6 to 5 percent, followed by Equalization Account in Great Britain was reductions in Sweden and Norway on the 19th, derived from sales of securities, and in Sweden in Greece on the 20th, and in the United States available statistics show that the substantial on the 26th, of the same month. Downward increases in the foreign assets of the Riksbank alterations in Europe continued in the following and the commercial banks during the year 1932 months: in March, reductions in 9 countries; correspond almost exactly to the net export of April, reductions in 7 countries; May, reducbonds and shares. tions in 7 countries; June, reductions in 2 coun- Further, there has at different periods been tries; July, reductions in 3 countries; August, a fairly considerable shifting of the holdings reductions in 2 countries; September, reducwhich for security reasons were accumulated by tions in 4 countries; October, reductions inT4 foreigners in centers with large monetary re- countries. serves. The most important instance during After an interval in November and Decemthe year was the liquidation in the New York ber, with only one reduction in the 2 months, market from abroad, which brought the foreign the downward trend continued in 1933, viz: balances on that market down to a relatively January (3 countries), February (1 country), Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1933 FEDERAL RESERVE BULLETIN 361 and March (3 countries). In the last month efforts in this direction as, for instance, in Austhe tendency was interrupted by the isolated tria, Czechoslovakia, Finland, Italy, and increase of the Federal Reserve banks, the New Sweden. York rate being raised from 2}i to 3}£ percent In some countries, the government has interon March 3, as a consequence of the banking vened in order to bring about a decline in intersituation. The extraordinary uniformity of est rates. This was notably the case in Gerthe downward movement is illustrated by the many, where the decline was made an element fact that from the middle of January 1932 until of the policy of general adjustment in costs so March 1933 there was not a single increase in vigorously pursued during the winter of 1931the discount rate of any central bank in the 32. world. Experience has shown that a decline in rates The reduction of money rates may, in indi- which only reaches the very short-term market, vidual countries, be attributed to a return of although it no doubt benefits certain borrowers, money from hoarding, a slight recovery in sav- is not an unmixed blessing, since financial ings, a deliberate policy designed to augment institutions then earn less on the large amounts bankers' balances, the acquisition of new gold which, for liquidity reasons, they must keep by the central banks, or perhaps also, in some in quick assets, and consequently are likely to instances, to governmental action; the domi- be less able to reduce the rates for their regular nating factor of the whole movement has, how- accommodations for industry. To achieve a ever, been the lack of demand for funds due to more widely spread reduction of interest rates, continued stagnation in industry, commerce long as well as short, is a task presenting conand the capital markets. This can also be siderable difficulty, for credit is based on conseen from the fact that it is particularly, and fidence and without a policy that begets general often only, investments which offer the very confidence in the whole credit structure no best security on the short-term market (prin- fundamental durable adjustments would appear cipally Government issues) that have primarily possible. A reduction in the cost of capital benefited by the interest rate reductions. It would, however, be of great value; indeed it is has, indeed, been singularly difficult, even indispensable in order to bring the price of when the supply of funds has been plentiful, money into necessary equilibrium with the to make the lower rates penetrate into other other price changes that have occurred in the branches of the credit structure, and, especially, economic structure and as a step in the direcinto the various categories of long-term invest- tion of making possible some future improvements. ment in the general level of commodity prices. Some progress has, however, also been made It would not only ease the burden borne by in this respect. debtors but should also facilitate borrowing for Several governments have made use of the new developments, and thereby the expansion occasion for debt conversions. In addition to of economic activity. the outstanding example afforded by the In the international field the past year has- British conversion of more than £2,000,000,000 witnessed several constructive steps in the announced in June 1932, the Australian, Bel- right direction, such as the important reducgian, Danish, Dutch, French, Italian, Swedish tions made in rates payable on debts coming: and Swiss Governments have all converted in under standstill and similar arrangements. their respective countries part of the public Furthermore, a number of helpful agreements debt. By measures of this kind a signal lead affecting principal payments as well as inmay be given to the market in helping to over- terest, at least for a transitional period, have come the sluggishness of adaptation to a lower been reached during the year between imporlevel which often characterizes the rates paid tant groups of long-term bondholders and variby long-term borrowers less closely connected ous heavily indebted governments suffering with the short-term money market than are from the depression. It is only natural that governments. negotations for adapting to prevailing condi- During the latter half of 1932 a distinct down- tions the interest on external indebtedness ward trend, embracing a number of countries, should give rise to many difficult problems. can also be traced in the rates of savings banks Just as on the national markets the tendency and similar institutions. In order to effect a to reduce rates has so far been really marked more uniform adjustment than would result only with regard to assets offering the very from purely individual action, central banks best security and has but slowly penetrated to have taken steps in many cases to coordinate other obligations, so the valuation of risk in the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

362 FEDERAL RESERVE BULLETIN JUNE 1933 international domain is a particularly intricate June 23, 1932, Austrian National Bank problem. Insofar as the risk element is re- ceased to allocate foreign exchange required duced by governmental measures designed to to fulfill obligations abroad. improve political and commercial relations June 30, 1932, Paraguay introduced foreignbetween various countries—and Lausanne in exchange regulations. that respect set an example for the World July 1, 1932, New Zealand suspended its Conference to follow—the negotiations be- foreign-exchange regulations. tween debtors and creditors will be greatly July 1, 1932, Japan issued a decree to prefacilitated not only as regards interest charges vent flight of capital. but also as regards such transitional attenua- August 18, 1932, the legal cover of the tions in amortization provisions as the situa- Austrian National Bank was reduced from 24 tion of the debtor justifies and the self-ad- to 20 percent. vantage of the creditor, on the long view, in September 19, 1932, the German Governreality demands. In cases where the burden ment, after agreement with the board of the of existing indebtedness has been so aggravated bank, suspended for 2 years certain restricby the present level of prices as to be incom- tions in the German bank law relating to the patible with the equilibrium of the balance of Reichsbank's discount policy. payments, agreements should be concluded October 5, 1932, the statutes of the Bank of between debtors and creditors. Danzig were made more elastic. (b) Some main features of currency policy.— December 28, 1932, Union of South Africa At the end of 1931 after the wave of monetary suspended the gold standard. distrust had somewhat spent its force, a sur- January 31, 1933, in New Zealand the vey of the position would show that in Europe premium of sterling was increased from 10 to only about 8 countries were still able to apply 25 percent. a free gold standard; 10 countries had openly January 20, 1933, Denmark pegged its ex suspended the gold standard, allowing the ex- change at about 22K kroner to sterling. change rate to fluctuate widely outside the February 9, 1933, the statutes of the Bank former gold points; and the remaining countries Polski were amended, involving a reduction of had introduced exchange restrictions of a more the cover percentage. or less complicated nature, these restrictions February 17, 1933, signing in Berlin of the being in most cases part of a program de- third standstill agreement for German credits. signed to maintain the exchange rates in the February 26, 1933, renewal of Austrian proximity of the legal parity. standstill agreement. During the following period no such sweep- February 28, 1933, Yugoslavia made proviing changes took place. There still occurred sions for the official publication of the preisolated events of considerable importance, miums ruling on foreign currencies. which, with the dramatic exception oi the March 4, 1933, Hungarian standstill agree- American bank holiday and gold export re- ment renewed up to February 1, 1934. strictions toward the close of the bank's fiscal March 6, 1933, United States introduced an year, did not engender those wide repercussions embargo on gold. characteristic of the previous period. The March 13, 1933, United States introduced following chronological table records some of foreign-exchange regulations. the main monetary events of the year under March 23, 1933, Austria provided for daily review in this report. quotations of the gold schilling applicable to April 19, 1932, Chile suspended the gold payments in respect of contracts in gold or standard. foreign currencies. April 26, 1932, Greece suspended the gold At the time of writing, the final outcome of standard. the banking crisis, which came to a head in the May 11, 1932, Siam suspended the gold United States during the first week of March standard, and pegged the exchange rate to 1933, cannot yet be discerned, particularly sterling. as regards its repercussions in the international May 18, 1932, Peru suspended the gold monetary sphere. The immediate effect was standard. to provoke a renewed conversion into gold of May 18, 1932, Rumania introduced foreign- dollar balances held by central banks; but gold exchange regulations. which had been earmarked for central banks May 27, 1932, Persia introduced foreign- and the Bank for International Settlements exchange restrictions. was not made subject to the export prohibition Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1933 FEDERAL RESERVE BULLETIN 363 decreed on March 6, 1933. No longer sup- In a number of Danubian countries, however, ported by gold reserves, the dollar exchange another policy has gradually been adopted. was left to find its own level on foreign mar- Exchange restrictions have in various ways kets, thus adding to the currency uncertainty been so modified that the rate at which combut at the same time making more imperative mercial transactions may ordinarily (or after the efforts to formulate and put into effect a the granting of licenses for special cases) be more clearly defined monetary policy through- carried out has been either the actual "ecoout the world. nomic" rate in the market or some other rate The attitude adopted by countries still ap- fixed below the legal parity. In these counplying a free gold standard without any re- tries, where the system of foreign trade clearing strictions, save those wisely inherent in the has been more developed than elsewhere, the gold bullion standard, may be found expressed rates adopted for such clearings, originally in the annual report of the Bank of France for the gold parity, have been gradually modified 1932, in which this bank reaffirmed its intention to correspond more closely to the actual market of adhering to the gold standard, adding the valuation. The responsible authorities have, following observations: in carrying out this new policy, been faced with "The short-term funds, which have been a very difficult task, it being imperative to employed in France during the last few years, allow modifications only insofar as they were may in fact be attracted again to foreign mar- economically required and, at the same time, kets, when these have recovered their equilib- to avoid any sudden shock to confidence esrium. This exodus should not provoke any pecially dangerous for the exchange position. disquietude if it marks the revival of inter- With regard to the developments in countries national exchanges of goods and capital and which have suspended the gold standard and so long as it is not accompanied by the pre- allowed the exchange rate to depreciate under cipitous action of speculation and distrust. the influence of the market, an important The strength and extreme elasticity of the sup- measure was taken in Great Britain by the porting structure of the franc indeed make it introduction of the Exchange Equalization possible to envisage without apprehension an Account, announced in the budget speech of outflow of gold which would be due merely to April 19, 1932, and constituted as from June 24, the regular functioning of the gold standard of that year. This fund, which disposed of regime.77 £150,000,000, made available chiefly in the In the pursuit of such a policy some central form of Treasury bills (together with a further banks have, however, found it both possible £25,000,000, the remaining balance of an and useful to avoid redundant movements of earlier exchange account of the Government), the metal by the technique of gold-earmarking; was to be managed by the monetary authorities the services of the Bank for International "in such a manner as they think best adapted Settlements have in several instances been for checking undue fluctuations in the exchange employed for that purpose. But no truth value of sterling." Although the Government needs more emphasis than the fact that it is floating debt was increased by the full nominal rational and necessary for gold to move from amount of the fund, the Treasury bills in fact the large stocks to those centers insufficiently remained in the dossier of the Account until supplied, if the latter centers are to return to amounts had to be provided in sterling as a the free gold standard and if anything like counterpart to purchases of foreign exchange. normal international trade and international Conversely, when foreign exchange was sold movements of capital are to resume. Central by the fund, the counterpart obtained in banks should actively combat the popular sterling would be available to reimburse fallacy to the effect that a "loss" of gold is Treasury bills. While some major movements necessarily deleterious to the national economy. of the exchange have not been avoided, the Countries which have introduced exchange operations of the fund have for shorter periods restrictions have had to cope with the diffi- had the effect of maintaining a more stable cult problem of making control effective. In relationship between sterling and gold cur- Germany, for instance, a black rate in free rencies at the rates at which the Account bought reichsmarks has been avoided; in fact it has and sold foreign exchange. been possible in the course of the year to give Some countries which have suspended the greater freedom to blocked balances without gold standard, like Portugal, Siam, and memendangering the mark parity. bers of the British Commonwealth (except Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

364 FEDERAL RESERVE BULLETIN JUNE 1933 Canada), have kept a definite link between possible to find solutions by action in both the their currency and sterling. economic and financial fields. p Among Northern European countries a strengthening of the position is noticeable CENTRAL BANK COLLABORATION AND THE BANK'S in Finland, this country having continued the CONNECTION WITH OTHER RECONSTRUCTION repayment of short-term liabilities. The Fin- WORK nish mark, which had depreciated by about The monetary convulsions of the liquidity 50 percent in the autumn of 1931, has in recent months been appreciably stronger. crisis have again brought to the forefront a series of financial problems which intimately In Denmark, on the other hand, the Governconcern central bank activities. In many ment, after negotiating with various political instances the problems that have arisen are parties, decided at the end of January 1933 essentially national in character, but it will to allow a further depreciation of the exchange, generally be found that even when these which has since been linked to the pound at a problems appear to be primarily a domestic rate of 22% kroner, giving a sterling premium of concern—for instance when they relate to the about 25 percent. Earlier in the same month internal banking structure—repercussions set a similar depreciation had been effected in the New Zealand pound (from 10 to 25 percent in which may be world-wide in their effects. sterling premium). And the main problem—the restoration of an international monetary standard functioning The possibility of effecting a deliberate deprein a satisfactory manner—presupposes, in the ciation of the currency has been considered in a opinion of all the responsible bodies which have number of other countries which have naturally dealt with the matter, that certain essential asked themselves what line of policy would be conditions in the international sphere shall be in their best interests. The Swedish Riksbank fulfilled. What these conditions are and how when dealing with this question in its annual they may be fulfilled, whether by Governreport for 1932 emphasizes that a policy of dements or other authorities, has been a subject preciation might, for Sweden, involve certain of examination by the Bank for Internationa] serious risks. Settlements and its member central" banks " Experience has shown that a far-going during the year under review. depreciation of a country's currency has resulted in obstacles in the form of higher * * * ** tariffs and quotas having been put in the way On July 11, 1932, the board of the bank of a country's export. As to restrictions harm- unanimously adopted and made public a ful to Sweden's export, reference may be made resolution, which was widely commented upon to the increase in the British tariff as well as to throughout the world and which is here re- French quotas and the so-called surtax in produced in full: France. Demands for protection against Swed- 1. The board of the Bank for International Settleish exports among others have also been put ments, recognizing the necessity of the reestablishment forward in other countries. The decline in the between nations of a monetary system with a common basis in order to facilitate international settlements export from Sweden of, for instance, paper and under more stable and secure conditions, is unanipulp, which might be the result of new restric- mously of opinion that the gold standard remains the tions in the countries which import Swedish best available monetary mechanism and the one best goods, must lead to a further curtailment of suited to make possible the free flow of world trade and of international financing; it is desirable, therefore, to domestic production and increased unemprepare all the necessary measures for the reestablishployment." ment of the functioning of the gold standard. This statement indicates the dangers of a 2. In order to render possible a general return to the policy of forced depreciation from the point of gold standard, the board thinks it first necessary that those measures should be taken by international colview of the interests of an individual country laboration and national efforts which will restore equiadopting such a policy. From a more general librium in the economic and financial structure of the point of view there is no doubt that a " com- various countries. petition in depreciation" would still further 3. The realization of these measures depends in the first instance on government action and, without that, disturb international commercial and financial is beyond the power of central banks. To enable the relations, a development which in view of the mechanism of the international balance of payments to forthcoming Monetary and Economic Con- work again in a satisfactory manner, it will be necessary ference would be particularly harmful at the to restore a reasonable degree of freedom in the movement of goods, services, and capital; to complete the present juncture. A convocation of the World solution of reparations reached at Lausanne by a satis- Conference at an early date should make it factory solution of war debts; and to take the necessary Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1933 FEDERAL RESERVE BULLETIN 365 steps in each individual country to restore and main- bank activity. Under the provisions of the tain equilibrium in the internal economy, not only as agreement with Germany signed at The Hague regards public revenue and expenditure, but also as and giving effect to the New (Young) Plan, regards the cost of production and organization of the internal money and capital market. certain important articles of the Reichsbank 4. Little or no progress can be expected in the mone- statutes (including article 29) might be changed tary sphere or toward the effective general restoration only if the board of the Bank for International of the gold standard as long as the main outstanding Settlements, upon consultation with the Gerproblems are not definitely dealt with by the governments. As soon as sufficient progress is made in the man Government, expressed no objection. settlement of these problems, concurrently with action Article 29, paragraph 3, of the statutes laid on the interdependent economic problems, action in the down that the discount rate of the bank might monetary sphere can also begin. The Bank for Inter- not be reduced below 5 percent so long as the national Settlements will be available to the central percentage reserve remained uninterruptedly banks to serve as their common agency in the task of monetary reconstruction. below 40 percent. This stipulation was con- 5. The board further wishes to record that it has sidered to be an obstacle to the development of found itself in substantial agreement with the conclu- German monetary policy and in September sions of the report of the Gold Delegation of the League 1932 the Minister of the Reich for Economic of Nations of June 1932, as adopted by the majority of its members. These conclusions form a starting point Affairs in a letter to the Bank for International for the elaboration of monetary principles, which may Settlements requested the board to approve be given practical application in the future. the suspension of article 29, paragraph 3, of All the events in the international monetary the Reichsbank law for a period of 2 years. and financial field which have occurred since By a resolution taken at its meeting on Septhis resolution was unanimously adopted 10 tember 9, the board decided that it did not object to the proposal of the German Governmonths ago but reconfirm the principles and ment, which the same day suspended the appliviews therein expressed. The restoration of an cation of the paragraph until September 30, international gold standard is indispensable 1934, and on September 22, 1932, the Reichsand goes hand in hand with the resumption of bank rate was reduced from 5 to 4 percent. normal economic relationships. * * * ** * * * ** In addition to any special work connected with financial reconstruction, the bank has CONCLUSION during the year maintained and developed its contact with the various central banks. The In the last annual report, it was pointed out regular meetings of the board have, as before, that the monetary systems of the world, both furnished an opportunity for general and private great and small, were in fact interdependent discussions between the members of the board and that internationalism in monetary matters and the staff of the bank, as also for the review was not merely an abstract ideal, but already of current questions outside the more formal an accomplished fact. The story of that year, business agenda. International collaboration with its rapid succession of currency and bankbetween central banks will in practice usually ing difficulties in one country after another, consist of action which is taken by each bank could not have been what it was except for the on its own market, but which is coordinated essential unity of international finance and to fit in with the general policy determined by monetary relationship which ignores political the main business trend. To arrive at a and geographical frontiers The last annual common interpretation of the manifold indica- report continued: "And this interdependence tions of economic tendencies as a basis for a is not confined to the field of finance, but coordinate policy, it is particularly important, penetrates much further into the whole ecoin a period of such rapidly changing conditions nomic structure of the various countries. The as the present, that central banks should keep indices of production, employment, trade and in constant touch with each other, so that new profits show to an astounding degree the same circumstances which occur may be given their recurrent tendencies in almost every country full weight. During the past year the personal in the world. All the evidence available leads contacts at Basle and elsewhere have been to the conclusion that any hope that a single most helpful. Progress has been made toward country may achieve prosperity apart from the reaching that closer approximation of views on rest of the world would indeed be based on an monetary matters without which no fruitful insecure foundation." decisions in the monetary field may be expected. During the year that has passed, this con- In a special field the board of the bank had clusion drawn at the end of the preceding fiscal to deal with an important question of central year has been reconfirmed. The efforts at Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

366 FEDERAL RESERVE BULLETIN JUNE 1933 national self-sufficiency have but further de- cumulative effects tended to accentuate the flated the volume of goods exchanged, of credit depression. granted, and of financial transactions under- The World Conference will offer an opportaken, with a consequent progressive reduction tunity for the various governments to frame of purchasing power and a steady increase of their economic and monetary plans in comthe real burden of debt. The world is at the mon; they may then find it possible and, incrossroads and must shortly choose whether deed, to their best advantage, to revise their the future is to take shape along the lines of previous lines of policy so as to adapt their closed national economies with reduced stand- measures to the exigencies of the general situaards of living, or is to revert to the international tion. A preparation of common plans in the economy toward which we were in fact economic and financial field presupposes a naturally and healthfully tending in the days desire to collaborate also politically. Meeting before the war and for a period thereafter. If after meeting, report after report, has stressed the former alternative be chosen, then the the importance of a solution of major political successful operation of an international mone- problems to reestablish that degree of confitary mechanism is deprived of its very founda- dence in international affairs without which a tion. The hopeful factor at the moment is that recovery by concerted action cannot be exthe world, speaking generally, recognizes that pected. This is equally applicable to the a choice must be made. Furthermore, the problems of a monetary character to which the political authorities have come to realize their World Conference must address itself. There responsibilities, and have made and are making the great desideratum is the general restoration deliberate efforts to cope with the situation, of a reformed gold standard without further and are prepared to meet together in the work delay. As the board of this bank stated in of reconstruction. Thus, the review contained its unanimous resolution: " In order to facilitate in this report has mentioned many of the steps international settlements under more stable which in the past year have been taken by and secure conditions, the gold standard repolitical and monetary authorities. In one mains the best available monetary mechanism outstanding instance—the Conference at Lau- and the one best suited to make possible the sanne—these efforts resulted in an agreement free flow of world trade and of international that represents a great example of collaboration financing. * * * Little or no progress can in settling an international problem. When, be expected in the monetary sphere, or toward on the other hand, the efforts have been made the effective general restoration of the gold in the national sphere, each government has standard, as long as the main outstanding naturally formed its plans to safeguard the problems are not definitely dealt with by the equilibrium of its own country—internally as governments. As soon as sufficient progress regards the budgets and externally as regards is made in the settlement of these problems, the balance of payments. It has not infre- concurrently with action on the interdependent quently happened that measures which seemed economic problems, action in the monetary appropriate from the national point of view— sphere can also begin. The Bank for Interas for instance the imposition of higher tariffs national Settlements will be available to the to improve the trade balance and thereby to central banks to serve as their common agency protect the currency—have proved harmful in the task of monetary reconstruction." from a general point of view and by their Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1933 FEDERAL RESERVE BULLETIN 367 BALANCE SHEET OF THE BANK FOR INTERNATIONAL SETTLEMENTS AS OF MAR. 31, 1933 Resources (i f n s S r a a w t n n h i d c s o s s s u- ( D i s n o a l t n l h a d o r s s u - i Liabilities (i s f n S a r a w n t n h d i c s o s s s ) u- D (i s n o a l n t l d h ar s o s ) u i - I. Cash on hand and on current account with I. Capital: banks... 11,396 2,199 Authorized and issued 200,000 shares, each III. Sight funds at interest 52,543 10,141 of 2,500 Swiss gold francs 500,000 96,500 III. Rediscountable bills and acceptances: of which 25 percent paid up 125,000 24,125 (1) Commercial bills and bankers' acceptances _ 275,172 53,108 II. Reserves: (2) Treasury bills -. 257,461 (1) Legal reserve fund 1,318 254 (2) Dividend reserve fund 2,690 519 532,633 102,798 (3) General reserve fund 5,379 1,038 IV. Time funds at interest: 9,387 1,812 (1) Central bank credits 169,042 32,625 (2) Other funds not exceeding 3 months' ma- III. Long term deposits: turity.. _ 16,661 3,216 (1) Annuity trust account 153,640 29,653 (2) German Government deposit 76,820 14,826 185,703 35,841 (3) French Government guarantee fund.. 68,481 13,217 V. Sundry bills and investments: 298,941 57,696 (1) M ( (6 a) ) a t T S ur u r i e n n a d g s r u y w r y i i t n h b v i i e n ll s s t 3 m m e o n n ts ths: 7 1 0 4 , , 7 4 6 2 2 4 1 2 3 , , 7 6 8 57 4 IV. (1 S ) h o C ( r a t e ) n te N tr r a m o l t b a e a n x n d ce k s e s i d g f i o h n r t g t d 3 h e e m p i o r o s n o it w t s h : n s account: 196,930 38,007 (2) B (a e ) tw T e r e e n a s 3 u r a y n d b i 6 ll s m onths: — 23,481 4,532 (b) Sight.... 254,796 49,176 (b) Sundry investments 35,301 6,813 451,727 87,183 (3) Over 6 months: (a) Treasury bills 5,841 1,127 (2) Central banks for the account of others: (b) Sundry investments 616 119 Sight 13,301 2,567 (3) Other depositors: 150,425 29,032 (a) Not exceeding 3 months ._. 3,330 643 (b) Sight.. 3,285 634 VI. Other assets. 7,876 1,520 6,615 V. Miscellaneous items 21,539 VI. Surplus: Profit for the financial year ended Mar. 31, 14,064 Total resources 940,575 181,531 Total liabilities _ 940,575 181,531 * Conversion at par: 1 Swiss franc=$0,193. NOTE.—The whole of the short term and sight deposits (item IV—Liabilities) are more than covered by immediately available assets either in the currency of the deposits or in currencies free from exchange restrictions. Of the remaining assets (which are held against long term and capital obligations, reserves and miscellaneous, items I, II, III, and V—Liabilities) an important part is in countries where exchange restrictions now prevail, but a substantial proportion of these assets offsets commitments expressed in the same currencies. Moreover, under article X of the Hague agreement of January 1930 the signatories thereto declared the bank to be immune from any "prohibition or restriction of export of gold or currency and other similar interferences, restrictions or prohibitions." 177784—33 4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

368 FEDERAL RESERVE BULLETIN JUNE 1933 FINANCIAL STATISTICS FOR FOREIGN COUNTRIES GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS, 1913-33 [In thousands of dollars] End of month c T o o u t n a t l r i ( e 5 s 0 ) S U t n at i e te s d i England France m G a e n r y - Albania Algeria A t r i g n e a n- t A ra us l - ia Austria H A u u n s g tr a ia ry - B C e o lg ng ia o n 1913—December—. 4,856,712 1.290,420 164,853 678,858 278, 687 8,168 256,126 21,987 251,421 1914—December.,. 5,342,038 1,206,487 425,974 802, 583 5,247 241, 539 38,995 213, 757 1915—December... 6,238,166 1,706,922 388,532 967,950 582,443 5,406 238,906 73, 552 138, 758 1916—December-. 6, 625,958 2,202,157 395,841 652,886 600,377 5,572 265,540 78,351 58, 759 1917—December... 7,139,964 2,523,084 416, 723 639,682 573, 249 5,786 288,020 85,787 53, 717 1918—December... 6,807,718 2,657,885 520,969 664,009 538,861 5,818 304,466 104,007 53,072 1919—December... 6,794, 268 2,517,722 578,130 694,847 259, 519 5,876 336,707 116,850 45, 111 1920—December... 7, 238, 703 2,451,182 754,230 685,517 260,028 5,876 473,913 122,369 2 11 1921—December... 8,029, 962 3, 221,215 754,867 690,141 237.102 5,872 472,415 124,197 2 16 1922—December—. 8,402,141 3,505, 551 742, 740 708,403 239,354 472,529 127,309 1923—December... 8,635, 758 3,833,735 745,543 709,480 111,247 5,866 466, 495 131,218 1,313 1924—December- 8,956,475 4,090,067 748,156 710,394 180,939 5,863 443,896 129,620 1,560 ^S—December... 8,973,865 3,985,399 694,761 710,968 287, 763 19 5,851 450,592 162,488 2,087 1926—December... 9,209, 519 4,083,380 729, 274 711,106 436, 235 303 6,054 450,557 109,555 7,388 1927—December-. 9,568,389 3,977,181 737,119 954,000 444,158 251 6,047 529,134 106,001 11,883 690 1928—June 9,761,673 3, 732,134 825, 524 1,136,409 496,365 258 6,076 622,049 110,748 16, 490 790 July 9,852, 717 3, 737, 223 842,987 1,172, 797 523,958 254 7,220 621,570 111,089 16.715 790 August 9,893, 545 3,749,334 842,654 1,189,773 535, 505 251 7,255 621, 221 110,890 18,918 840 September.. 9,939,225 3,752,038 830,079 1, 200,403 570,958 249 7,264 620,873 107, 658 18,918 840 October 9,963,462 3,769,065 795,463 1,206,800 603,317 244 7,276 610, 734 107,368 23, 765 940 November.. 10,012,597 3, 753,936 774, 207 1, 238, 720624,916 244 8,075 610, 486 107, 708 23, 743 991 December—. 10,027, 787 3,746,111 748, 390 !1, 253, 500650,127 241 607, 290 109,410 23, 743 991 1929—January 10,058, 862 3, 745,615 743,183 1,332, 621 650,091 238 8,085 605,125 109,654 23, 743 991 February. _. 10,082, 229 3,775,924 734, 340 1, 334, 274650,032 235 602,621 110,184 23, 743 991 March 10,108,829 3,813,631 746,190 1,340,109 639,020 266 8,087 585, 340 110,480 23, 743 991 April 10,066, 279 3,888, 702 759,388 1,402,893 450, 573 265 8,087 569,198 111, 296 23,727 991 May 10,133,483 3,930,948 790, 646 1,434,580 420, 311 263 8,088 560, 230 108,387 23,727 991 June ... 10,146, 433 3,955,862 774,143 1,435, 688 455, 292 263 524,944 108, 288 23, 727 991 July 10,161,107 3,974,446 1.462,144 511, 733 262 8,089 512, 734 111,012 23, 727 991 August 10, 250,047 3,994,971 663, 611 1,526, 070 520,095 268 507, 042 116, 202 23, 727 991 September.. 10, 274,341 4,007,939 642,076 1, 544,904 526,909 346 495, 600 118, 756 23, 727 991 October 10,305,624 4,022,954 637, 594 1,569,996 530,977 342 8,088 476, 356 112,528 23, 727 991 November.. 10,308, 012 4,002,898 655,576 1, 599,684 533,652 341 450,705 97,482 23, 727 991 December... 10, 306,165 3,900,160 709, 769 1,633,402 543,838 340 433,932 89, 547 23, 727 1,041 1930—January 10,370,740 3,921,222 730, 632 1, 682, 503547.157 336 445,478 89,097 23, 727 1,141 February. _ 10,440,044 3,987,806 736,433 1,679,934 582, 253 333 8.089 448,450 123,807 23, 727 1,141 March __, 10,516, 690 4,060,523 755,008 1,668,229 594,531 332 8; 090 445,000 132,725 23, 727 1,141 April 10, 581,909 4,131, 320 794,904 1,660,152 611.103 334 8,092 441,825 113, 653 23,727 1,141 May 10, 622, 603 4,158, 704 764,946 1, 717, 308617,208 351 8,093 441, 276 92,043 23.716 1,141 June 10, 680,032 4,177, 630 763,466 1, 726,846 623,816 351 8,094 440, 258 97, 534 23,714 1,141 July. 10,713,954 4,160,431 741,066 1, 775, 088623, 774 349 8,096 436, 366 97,799 23.717 1,141 August 10,795,953 4,147, 685 753, 529 1,851,872 623,831 348 8,096 433, 931 97,853 23, 720 1,141 September. 10,832,675 4,159,474 760, 658 1,898,506 590,458 346 8,096 433, 935 98, 541 30,194 1,141 October 10,861,149 4,184,348 776, 226 1,991,635 519,327 378 8,097 429,074 79,451 30,157 ., 141 November.. 10,903, 239 4, 220,487 761,943 2,037,103 519, 274 378 8,097 417, 215 74, 976 30.159 , 141 December.. 10, 916, 661 4, 225,109 718,422 2,100,242 527,799 376 8,097 412,023 75, 316 30,168 , 141 1931—January 10,962,759 4,285,341 678,809 2,175,996 534, 575 371 397, 289 75, 656 30.160 ,141 February.. 11,017,447 4,308,964 685, 281 2,192,205 544,313 369 389,575 76,196 30.161 ,141 March 11,080,096 4, 343,186 698,898 2,199,764 553,434 367 8,099 378,439 76,602 30,161 ^,141 April...- 11,116,577 4,373,482 711,872 2.180,145 564,154 365 8,099 369,906 73,784 30,156 ,141 May 11,226,237 4.445,421 734,924 2,180,855 569, 376 363 8,100 362,160 74, 252 30,156 ,141 June 11,273, 228 4, 592,901 792, 724 2, 211, 884 338, 505 361 8,100 350, 256 75, 202 30,156 1,141 July 11,220,939 4, 586,534 642, 548 2, 289,574 324, 738 477 8,102 322,072 65, 584 30,156 1,141 August 11,296,874 4,632,045 648,904 2,295,692 325,400 595 8,111 309,293 51, 608 30,156 1,141 September . 11, 275, 868 4,364,427 656,092 2,326,370 309,848 594 8,197 281,162 51, 848 26, 668 974 October 11,140, 662 3, 905, 251 660, 272 2,534, 210 272,629 789 8,206 269,816 52, 648 26, 668 2,170 November.. 11, 250,877 4,031,412 587,435 2, 659,490 239,374 989 8,207 264,837 51,498 2,170 December.. 11, 291, 201 4.051,473 587,622 2, 699,431 234, 378 983 8,208 252,698 51, 598 2,253 1932—January 11,342, 243 4,009,017 587,693 2,807,702 225,772 953 8,209 251,551 51,498 25,244 2,253 February- _ 11,420,355 3,947, 301 587,742 2,942,314 221,167 956 8,209 248, 863 51,698 25,244 2,253 March 11,501, 687 3,986,088 587,907 3,011, 796 209,294 959 8,210 248,862 51,568 25, 244 2,253 April 11,517,126 3,955, 514 587,951 3,052,193 204,574 959 8,210 248,857 51,608 25, 244 2,253 May 11,417,851 3,717,156 608,468 3,115, 233 205, 500 1,072 8,212 248,857 51,938 23,138 2,253 June 11,350,336 3,465,833 662, 540 3, 218, 306 198, 232 1,073 8,212 248,816 51,898 21,031 2,253 July ._ 11,421,859 3,522,457 670,244 3,220,967 182, 513 1,072 8,213 248.816 42, 203 21,031 2,201 August 11,564,347 3,638,779 675,986 3, 223,777 183,011 1,070 8,213 248.817 42, 283 21,031 2,079 September. 11, 695,926 3, 748,107 678,492 3, 241,108 189,688 1,065 8,213 248,817 42,393 21,031 2,054 October 11, 790, 621 3,819, 111 678,497 3, 250,033 194,684 1,059 8,214 248,817 42,053 21, 031 1,934 November.. 11,862, 309 3, 885,094 678,497 3, 266,989 197,046 1,063 8,214 248, 817 41,953 21,031 , 717 December.. 11,897,323 4,044, 522 582,948 3, 254, 247 192,043 1,064 8,215 248,817 42,073 21.031 ,718 1933—January 11,924,946 4,074, 219 601,549 3, 220,958 195,777 1,063 8,215 248,817 42,113 21.032 :,718 February-. v 11, 740, 668 3.808,474 692, 240 3,175,854 183.158 1,059 8,216 248,817 42,073 21,038 ,718 March v 11,939,157 3, 915,827 836, 254 3,152,027 175,945 1,060 8,218 248,819 20,909 21.041 ,718 April * 11,975, 513 3,977,015 904,872 3,169,948 97, 791 1,057 8,221 248,819 3,500 21.042 ,718 1 Differences between these figures and those shown elsewhere in the BULLETIN for total monetary gold stock of the United States are due to the exclusion from the former of gold coin in circulation. 2 Austrian account only. v Preliminary. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1933 FEDERAL RESERVE BULLETIN 369 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS, 1913-33—Continued [In thousands of dollars] End of month g B iu e m l- Bolivia Brazil g B a u ri l a - Canada Chile Co b l i o a m- C v z s a e l k o ch i - a o- Danzig m D a e r n k - E d c o u r a- Egypt E n s i t a o- l F a i n n d - 1913—December . _ 48,062 2,593 89,610 10,615 116,572 19,666 10,464 6,973 1914—December 50,983 2,566 44,805 10,615 99,126 1,330 24,506 21, 552 8,236 1915—December 50, 742 2,598 24, 588 11, 773 126, 545 1,330 29,833 35, 734 8,230 1916—December,. __ 50, 745 2,709 24, 588 13,124 131, 558 1,330 42,847 29,624 8,232 1917 December 50, 748 2,766 24, 588 12,159 139,823 9,042 46, 611 19,219 - - 8,227 1918—December 51,119 7,081 26, 227 12, 352 129, 761 23,420 52,159 16 520 8 234 1919—December 51,417 6,077 26, 227 7,137 129, 712 24,391 2,835 60,807 16,538 8 227 1920—D ecem ber 51,438 6,075 32, 784 7,155 112, 605 32,902 4,515 60,992 16, 539 8,227 1921—December 51,451 6,080 42, 619 7,335 95,073 34,034 12,458 61,192 16, 540 94 8,227 1922—December 51, 901 5,862 46,152 7,415 146, 588 34,034 20,474 61,173 16, 540 1,476 8,371 1923—D ecember 52, 204 5,862 48,669 7,629 127,169 34,034 4,875 26,932 56,171 16, 540 8,242 1924—December 52, 543 5,861 53,803 7,792 151,467 34,035 9,274 27,075 1 56,145 16,540 1,427 8,354 1925—December 52,855 6,553 54,305 7,981 156, 768 34,034 14,599 27,147 1 56,085 16, 591 1 318 8 357 1926—December 86,214 6,899 56,329 8,464 158,105 10,303 18,401 27, 221 1 56,007 17,456 1,353 8,250 1927—December 99,878 6,919 100,746 9,198 151,978 7,439 20,462 29,845 2 48, 780 2,046 18,459 1,377 7,979 1928—June 110,120 1 6,925 139,739 9,367 104,415 7,344 22,785 29,799 1 48,736 1.023 18, 715 2,779 7,827 July 111,639 1 6,925 139,897 9,391 98,426 7,373 23, 749 30, 308 1 48, 724 1,020 18,799 2,691 7,802 August _ __ 111,850 i 6,925 143,090 9,417 100,528 7,368 23,887 31, 284 1 48, 712 ,018 18,794 2,693 7,778 September 112,214 1 6,925 143,263 9,448 105,628 7,367 23,993 32, 507 1 46,334 L,018 18,888 2,692 7,746 October 112,951 1 6,925 145, 564 9,482 107,632 7,366 24, 284 32, 505 1 46, 322 ,024 18,927 2,684 7,723 November 115, 283 1 6,925 148,351 9,499 132,854 7,366 24,380 32, 501 1 46,299 L, 130 17,519 1,719 7,697 December 125,576 1 9,001 148, 555 9,529 113,948 7,363 24, 271 34, 352 1 46,298 124 17,698 1,710 7,672 1929—January . _. 125,809 i 9,001 148,723 9,566 78,646 7,386 24,472 34, 258 1 46,288 ,122 17,805 1,680 7,655 February 125,963 1 9,001 150,395 9,589 78,333 7,387 24,586 34, 269 1 46,276 ,121 17,805 1,671 7,640 March 126,178 1 9,001 150,371 9,660 77, 536 7,404 24,717 34,264 2 46,276 ,116 17,820 1,673 7,617 April 133,722 1 9,001 150, 379 9,728 78,098 7,411 24,913 34,287 2 46, 281 ,119 17,899 1,681 7,601 May 133,895 1 9,001 150,532 9,799 78,367 7,516 25,058 34,277 2 46,266 L, 118 17,973 1,687 7,588 June 139,454 9,447 150, 586 9,853 76, 277 7,602 25,178 34,253 2 46,252 ,117 17,998 1,692 7,587 July 140,722 6,955 150,819 9,927 76, 447 7,602 25,341 34,268 2 46,241 ,116 18,116 1,696 7,589 August 140,904 6,952 150,984 9,989 76,861 7,667 25, 532 34, 258 2 46,242 L, 117 18,230 1,699 7,588 September _ 142,159 3,380 151,108 9,971 77,136 7,671 24,291 34,261 2 46,233 ,116 18,408 1,702 7,614 October . 142,825 3,378 151, 272 9,956 77,328 7,687 22,867 35, 277 2 46,226 ,115 18, 571 1,705 7,649 November 150, 561 3,375 151,439 9,976 77,568 7,701 22,771 37,256 2 46,217 L, 115 18,789 1,708 7,631 December . 163, 351 3,379 150,395 9,997 77,626 7,695 21,774 37, 375 2 46,204 L, 114 18, 794 1,717 7,608 1930—January 163, 550 3,377 138,646 10,040 77,855 7,694 20,702 37,346 2 46,186 ,117 18,922 1,725 7,596 February. . 163,840 1,421 126, 584 10,077 78,410 7,697 20,746 37,350 2 46,184 L, 117 18,957 1, 729 7,584 March 164,109 1,425 126, 523 10,105 78, 520 7,695 20,004 37,354 23 46,174 ,117 19,016 1,732 7,666 April . . .. 164,431 1,425 89,793 10,133 79,313 7,696 20,328 37, 360 23 46,150 ,118 19,041 1,736 7,649 May 166,767 1,433 89,924 10,162 80,115 7,692 20, 741 38,856 23 46,166 ,120 19,085 1,742 7,631 June 167,040 1,387 89,389 10,211 80,857 7,689 19,965 38,861 23 46,152 ,120 19, 313 1,746 7,606 July 167,349 1,727 79,820 10,240 94,223 7,675 19,769 41,859 23 46,153 ,121 19,476 1,749 7,590 August 168,153 998 68,710 10,280 100,417 7,673 19, 593 41,855 23 46,150 ,121 19,585 1,751 7,617 September _ 173,408 1,001 64,694 10,323 109,854 7,509 20,000 41,835 23 46,143 L.121 19,748 1,754 7,596 October 180,033 1,003 31,832 10,369 121,827 7,504 19,144 43,803 23 46,129 1,123 19,861 1,756 7,579 November 180, 293 1,007 20, 264 10,427 129,148 7,577 17, 763 45, 775 23 46,120 1,124 19,985 1,753 7,612 December 190,754 1,014 10,531 10,475 109,843 7,495 17,015 45, 765 23 46,107 1,131 20,118 1,758 7,591 1931—January 191,299 1,015 13 10,499 91, 506 7,497 14,398 45,696 23 46,081 1,131 20,232 1,754 7,582 February. 196,847 1,020 231 10, 529 93,705 7,496 14,739 45,664 23 46,056 1,130 20,445 1,750 7,574 March 200,075 1,026 213 10, 592 96, 304 7,511 12,178 45,646 23 46,050 1,132 20,499 1,745 7,607 April. 200,868 1,025 78 10, 675 99, 277 7,513 12,497 45,630 25 46,081 1,133 20, 548 1,747 7,594 May 201, 284 1,026 294 10, 738 101, 877 7,647 9,581 45, 616 25 46,074 1,129 20,608 1,749 7,579 June 199,359 1,029 4 10,805 86, 579 7,697 9,811 45, 588 25 46,049 1,132 20,776 1,751 7,614 July _ - 213, 798 1,037 241 10,846 86,888 7,678 10,087 45,485 25 46,042 1,134 20,860 1,751 7,604 August. 220, 769 1,042 120 10,855 88,618 7,691 10,371 45,299 2,058 46,003 1,131 20,810 1,754 7,590 September 346, 402 1,045 265 10,867 82,943 7,747 7,892 45,013 3,058 43,984 1,133 20,880 1,755 7,597 October 356,871 4,397 147 10,874 86, 277 8,120 10,703 45, 949 4,241 43,999 1,131 20,885 1,755 7,697 November 355, 561 4,406 112 10,874 82,082 8,133 10,399 46,413 4,250 38, 664 1,131 20,885 1,756 7,656 December 354,416 5,048 322 10,882 77,642 12,132 8,885 48,837 4,249 38,664 1,133 20,885 1,758 7,653 1932—January 352,263 5,749 1,055 10,886 79, 781 12,148 6,483 48,804 4,249 39, 357 1,125 20,885 1,958 7,657 February 351,280 6,205 740 10,889 77,625 11,379 6,913 48, 729 4,248 38, 749 1', 966 22,625 1,959 7,660 March 349,463 6,263 170 10,892 76,749 11,486 7,328 48, 623 4,248 38, 749 2,721 30,840 1,962 7,661 April _ 350, 747 6,668 396 10,894 76,910 11, 593 7,733 48, 609 4,248 38,747 2,792 31,685 1,963 7,661 May . 353, 282 7,079 165 10,899 77, 769 11, 595 10,681 48, 602 7,247 38,747 2,803 32,931 1,965 7,664 June 356,705 7,316 25 10,907 78, 291 11, 597 12, 533 48, 593 7,447 35,889 2,807 32,936 3,073 7,670 July 365, 325 7, 213 223 10,918 78, 808 11, 662 12,970 48, 582 6,161 35, 700 2,919 32,936 3,073 7,670 August. 363. 507 7,270 15 10,920 79,616 11, 724 13, 444 48, 574 4,161 35, 699 2,922 32,936 3,074 7,670 September 358,955 6, 663 203 10, 923 80, 932 11, 330 12, 841 49,137 4,161 35, 698 2,930 32,936 3,075 7,670 October 362,903 6,499 13 10, 924 84, 571 10, 465 11, 265 49,126 4,162 35, 698 2,940 32,936 3,077 7,669 November.. 362, 450 5,209 194 10, 927 86, 348 10,122 11, 606 50,114 4,162 35, 697 2,941 32,936 3,677 7,670 December 360,842 5,199 203 10, 940 84,126 10, 231 11,925 50, 544 4,161 35, 693 2,959 32,936 4,081 7,670 1933—January 362, 086 5, 212 104 10, 941 84, 260 10, 276 12,380 50, 583 4,161 35, 695 2,961 32,936 4,083 7,670 February 365, 591 4, 271 13 10, 943 83, 664 10, 354 12, 659 50, 583 4,363 35, 695 2,962 32,936 4,781 7,670 March 371,024 4,536 209 10, 944 80,998 p10, 545 13, 297 50, 575 4,465 35, 694 2,956 32,936 4,782 7,670 April 371,303 P4,536 203 10, 946 77,117 v 10, 656 13,899 50, 569 4,465 35, 692 P2,956 P32, 936 4,782 7,670 Monthly data not available; figures for June and December 1928 carried forward. Preliminary. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

370 FEDERAL RESERVE BULLETIN JUNE 1933 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS, 1913-33—Continued [In thousands of dollars] End of month Greece G m u a a l t a e- H g u a n r - y India Italy Japan Java Latvia L a i n th ia u- Mexico N la e n th d e s r- Ze N a e la w nd N w o a r y - 1913—December.. 4,825 123,921 266,846 64,963 10,398 60,899 25,325 11,892 1914—December.. 7,086 270,569 64,062 15.118 83,664 30,250 10,290 1915—December- 67,881 264,089 68,187 12,053 172, 531 33,827 13,837 1916—December.. 11,378 78,127 224,172 113,411 29,452 236,216 37,414 33,027 1917—December.. 11,907 90,118 208,207 229,980 31, 517 39,161 31,193 1918—December 10,246 64, 231 203,426 225,622 43,423 277,155 39,506 32,691 1919—December 10,744 128,819 200,426 349,971 69,134 256,204 38, 260 39,590 1920—December 10,765 116, 249 206,128 556,475 88, 214 255, 729 37, 263 39,472 1921—December 10,770 118, 341 211,994 610,822 58, 728 2,123 243,600 37,394 39,474 1922—December. 10,769 118,341 219,446 605, 532 61,306 2,514 1,519 233,879 38,367 39,474 1923—December.. 12,007 108,609 218,092 602,343 62,869 3,188 1,645 233,876 38,290 39,472 1924—December.. 12,358 6,872 108,609 221,045 585,738 53, 726 4,553 3,078 202,854 37,579 39,457 1925—December.. 12,658 10,365 108, 609 221,585 575, 768 73,394 4,547 3,229 16,683 178,080 37, 667 39,456 1926—December. . 13,554 1,769 29,526 108,609 223,531 561.810 79, 369 4,558 3,136 4,689 166, 231 38,007 39,457 1927—December _. 14,728 1,740 34, 432 119, 097 241, 991 541,870 71,640 4,570 3,320 5,900 160, 796 39,458 1928—June 6,737 1,637 34, 375 il9,097 259, 047 541, 371 69, 911 4,579 3,424 7,884 174,886 35,886 July 6,905 1,842 34, 386 119,097 263,079 541, 371 69, 672 4,580 3,425 6,581 174,840 35,827 39,391 August 6,923 1,778 34, 386 119,097 263,085 541, 371 69, 397 4,580 3,422 7,351 174, 846 35, 759 39,381 September. 6,984 1,830 34, 383 119,097 265, 720 541,371 69.119 4,582 3,424 6,499 174,838 35, 584 39, 377 October 7,055 1,745 35,170 119, 097 265, 730 541, 371 68, 791 4,582 3,425 6,631 174,865 35, 735 39,375 November.. 7,129 1,994 35,170 120, 301 265, 729 541, 371 68, 549 4,583 3,426 6,144 174,777 35, 238 39,371 December.. 7,196 1,618 35,169 123, 988 265, 732 540,873 68, 264 4,585 3,427 6,238 174,692 34,868 39, 362 1929—January 7,256 1,657 35,776 128,039 265, 739 540, 873 68, 030 4,586 3,429 6,103 174, 685 35,423 39, 358 February.. 7,286 1,962 35, 755 128,039 266,083 540.811 67, 819 4,588 3,432 6,701 174, 688 35,350 39,356 March 7,343 1,745 35, 754 128, 076 269,617 541,977 67, 281 4,595 3,433 2,933 169,844 35,204 39,352 April 7,410 1,944 30,891 128, 039 269,597 541,966 67,208 4,597 3,435 3,296 173, 746 35,199 39. 349 May _- 7,558 2,009 30.891 128, 076 269, 621 541, 966 65,052 4,602 3,436 3,771 175, 679 35, 219 39, 341 June 7,728 1,875 30.892 128, 076 271,341 541,966 64,863 4,605 3,439 4,224 175, 586 35,097 39,338 July 7,862 2,010 28, 461 128, 039 271,358 540, 720 59, 545 4,608 3,442 4,435 180,664 35,160 39,335 August 8,041 2,085 28,462 128,076 271,410 540, 721 59, 325 4,611 3,446 5,197 178,152 34, 567 39,331 September, 8,105 2,006 28,464 128,076 272, 272 540, 721 58, 956 4,613 3,450 5,935 178,101 32, 756 39, 332 October 8,201 2,041 28.464 128,076 272,474 541,096 4,614 3,487 6,569 177, 975 31,851 39,324 November.. 8,267 2,090 28, 464 128,076 272,960 542,008 56,429 4,615 3,504 6,722 179,904 32, 260 39, 317 December.. 8,326 2,169 28, 465 128, 076 273,001 542,475 56,101 4,619 3,508 7,229 179,881 31,978 39, 302 1930—January 8,370 2,192 28.465 128, 258 272,967 519, 943 56,100 4,620 3,510 8,140 176, 692 32,406 39, 296 February. _ 8,422 2,270 28, 443 128, 258 272, 989 477,123 55, 908 4,622 3,516 9,253 175,676 32,396 39,294 March 8,153 2,335 28, 444 128, 258 273, 619 453, 088 55,939 4,626 3,519 8,942 173,649 32,343 39,293 April 2,417 28,443 128, 258 273, 708 443,353 55,859 4,629 3,520 8,652 173,637 33,486 39, 289 May _ 7,840 2,463 28,445 128, 295 273,817 434,008 55, 851 4,632 3,522 7,951 173, 629 33, 482 39, 286 June 7,544 2,502 28,445 128,295 273.925 434,389 55,960 4,635 3,524 173,630 33, 267 39,281 July 7,355 2,534 28, 445 128, 295 274,030 439, 738 55,928 4,638 3,526 5,009 157,045 33,331 39, 278 August 6,714 2,545 28,446 128, 295 275, 207 432, 656 55,810 4,642 3,530 4,228 157,033 33,301 39,270 September. 6,791 2,591 28, 447 128, 295 278, 292 431, 278 55,804 4,643 3,531 4,933 157,013 33,336 39,260 October 6,835 2,637 28,448 128,295 278,396 413,977 55, 790 4,644 3,711 4,697 171,056 39, 242 November- 6,862 2,647 28,448 128, 258 278, 551 408,833 55, 786 4,644 3,838 4,414 171, 315 33,452 39, 245 December.. 2,674 28,448 128, 275 278,610 411,770 55, 693 4,646 3,939 4,430 171, 318 33, 394 39, 242 1931—January 6,663 2,679 28,449 128, 278 278, 716 414,864 51,690 4,645 3,939 4,467 175, 314 33,905 39, 241 February. _ 6,690 2,679 25,886 128,287 279,088 416,878 47, 719 4,646 3,941 4,460 179,314 34,104 39, 238 March 6,482 2,696 21, 987 135, 229 279, 333 415,439 47, 703 4,646 3,945 3,990 179, 285 33, 774 39, 238 April 6,259 2,692 19, 554 141,398 279,451 418,806 46,129 4,647 3,947 4,007 180.890 33,778 39, 235 May 6,287 2,745 19, 555 147,264 279,739 422,449 46, 203 4,651 3,947 4,745 180.891 33, 769 39,230 June 6,330 2,646 19, 554 150,660 282,358 424, 594 46, 252 4,651 3,949 4,595 199,961 33, 764 39, 227 July._ 6,350 2,610 19, 554 158,022 282,568 412,012 44, 266 4,642 3,952 1,920 235, 583 33,847 39, 221 August 6,363 2,594 18,328 161, 782 282, 658 406,163 44,329 4,635 3,953 2,026 .260, 387 33, 778 39, 216 September. 6,379 2,619 18, 327 161,803 286,430 407,948 50, 712 4,636 3,954 1,515 282,397 33,676 38,907 October 11, 289 2,246 18,329 161,813 292,976 342,152 53,110 6,085 4,761 3,103 336,020 33,837 46,037 November.. 11,290 2,228 18,329 161,808 295.926 270,635 53,114 6,087 4,763 2,765 362, 264 33,121 42,304 December. . 11.301 2,255 17,838 161,808 295,945 234,071 45, 227 6,089 5,014 2,662 356,668 32,275 41, 202 1932—January 11.302 2,033 17,500 161,827 295.945 214,631 45, 250 6,341 5,015 2,614 350,837 32,206 41,602 February._ Jl, 302 1,982 17,498 161,823 295.946 214,635 45,199 6,351 5,020 2,696 353,471 31,919 41,604 March 9,307 1,945 17,498 161,813 296,027 214,137 42,064 6,355 5,022 3,501 353,519 31,053 41,609 April 6,377 1,827 16,860 161.899 296,149 213,889 41,213 6,658 5,023 1,127 364,349 30, 236 41,609 May 6,411 1,628 16,863 161.900 297,200 213.889 41, 539 6,866 5,026 1,090 30,352 41,609 June 6,709 1,615 16,883 161.901 297,914 213.890 42,140 6,868 5,028 1,460 394,104 29,764 40,158 July 6,881 1,628 16,882 161,903 299,840 213,890 42,153 6,870 5,028 1,679 408,352 27,934 38,163 August 7,002 1,666 16,883 161.902 302,451 213,890 41, 658 6,874 5,019 1,647 414,841 26, 722 38,162 September. 7,140 1,778 16,883 161,893 304,521 213,890 41, 660 6,877 4,861 776 415,950 26, 532 38,162 October 7,365 1,774 161,937 305,645 213,890 42,073 6,879 4,862 612 416,021 26,644 38,661 November.. 7,598 1,728 16,888 161,937 306,432 213,392 41,993 6,880 4,905 2,154 415,098 26,644 38.661 December.. 7,618 1,737 16,888 161,935 307,157 211,897 41,749 6,882 4,907 4,133 415,126 24,600 38.662 1933—January—_ 6,755 1,728 16,889 161,935 308,161 211,897 41, 758 7,336 4,817 5,038 413,059 25,496 38,662 February- 8,399 1,711 16,889 161,934 324,778 211,897 44,768 7,736 5,005 6,193 409,979 25,340 38,656 March 8,923 1,717 161,933 211,897 45,039 8,035 4,910 9,062 381,392 25,097 40.420 April 11,397 1,739 16,890 162,048 342,780 211,897 43,030 8,242 4,912 12,169 373,829 24,659 40.421 I Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1933 FEDERAL RESERVE BULLETIN 371 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS, 1913-33—Continued [In thousands of dollars] End of month Peru Poland Po g r a t l u- Ru n m ia a- Siam A So fr u ic th a Spain Sweden Sw la i n tz d er TurkeyUruguay U (R .S u . s S si . a R ) . Y sl u a g v o ia - 1913—December.. 8,140 29,242 34,377 92,447 27,372 32,801 10,826 786,169 11,194 1914—December.. 2,151 8,662 29,733 30,693 110,589 29,088 45,922 13,481 802,769 11,034 1 1 9 9 1 1 6 5 — — D D e e c c e e m m b b e e r r . . . . 2 5 , , 6 2 0 8 8 0 9 9, , 2 1 4 9 7 5 4 95 2 , , 2 6 0 4 1 7 2 3 7 2 , ,0 0 5 4 6 8 2 1 4 6 1 7 , ,3 4 3 4 1 3 4 3 9 3 , , 1 3 8 8 3 5 4 66 8 , , 5 2 8 7 5 5 3 2 3 2 , , 2 5 5 3 1 0 8 7 3 5 0 8 , , 5 9 7 6 2 2 1 12 2 f , 3 3 2 8 1 1 1917—December.. 9,319 9,261 34,531 30,036 379,438 65,514 69,025 42,003 666,523 12,310 1918—December.. 13,251 9,263 34,466 33,340 429,541 76,532 80,041 46,718 0) 12,306 1919—December.. 16,181 1,644 9,265 34,725 35,540 471,516 75,351 99,779 56,756 0) 12,23a 1920—December.. 20,843 2,954 9,267 34,794 50,441 473,762 75,516 104,780 57,307 0) 12,386. 1921—December.. 20,955 5,931 9,267 34,794 49,361 484,660 73,631 106,058 56,813 (0 14,318> 1922—December.. 21,009 9,769 9,267 42,050 51,692 486,971 73,428 103,283 56,812 2,609 12,355 1923—December.. 21,563 13,099 9,267 46,364 52,500 487,687 72,853 103,669 56,812 45,043 13,286 1924—December.. 21,520 19,949 9,267 47,821 53,098 489,164 63,508 97,642 56,813 73,047 13,965 1925—December.. 21,534 25,793 9,267 48,537 43, 594 489,460 61,647 90,140 56,815 93,858 14,657 1926—December.. 21,641 26,677 9,267 49,588 36, 703 493, 282 60,162 91,050 56,823 84,605 16,620 1927—December.. 23,583 58,041 9,267 50,805 40,032 502,302 61,685 99,785 59,319 97,043 17,133 1928—June _ 21,495 67,463 9,267 51,495 40, 265 503, 203 61,802 68,324 79,995 17,419 July. 21,520 67,605 9,267 51,598 38, 056 503,327 61,676 86,434 68,326 85,130 17,434 August 21,520 67,643 9,267 51,698 39,243 503,363 61,532 86,734 68,332 75,404 17,447 September. 21,520 67,661 9,267 51, 746 39,365 503,417 63,790 90,309 68,335 76,212 17,491 October 31,520 68,183 9,267 51,953 35,521 503, 459 63,601 90,659 81, 502 17,520 November.. 21,520 68,407 9,267 52, 056 37,696 493, 781 ""l, 415 90,536 68,346 91,697 17, 544 December.. 21,520 69,685 9,267 49, 325 39, 273 493,807 102,874 68, 365 91,887 17,566 1929—January 21, 515 69,705 9,267 49,383 38,153 63,171 93,030 68,464 92,036 17,593 February.. 21, 515 69,736 9,267 49, 614 37,749 63, 085 92,949 68,464 92,036 17,629 March 21,515 69,811 9,267 51, 669 39,934 493,916 62,973 92,886 68,475 92,026 17,711 April 21,515 69,905 9,267 51,845 39,170 493,957 62,880 95,070 68,479 92,484 17,788 May 21,515 70,061 9,267 51,958 40,183 494, 039 62, 759 95,751 68,479 93,132 17,868 June 21,515 70,276 9,267 52,149 37,701 494,194 62,638 95,741 68,197 93,158 17,982 July 21,515 70, 373 9,267 52,307 37, 321 494, 528 62,593 97,882 68,200 103,424 18,073 August 21,505 73,003 9,267 52,498 38,450 494,871 64,935 97,824 68,202 118,862 18,115 September. 21, 505 74, 531 9,267 52, 617 38,645 64,840 102,801 68, 203 131, 712 18,159 October.... 21, 505 76, 559 9,267 54,418 40,426 494,887 64,685 103,003 68, 203 142,045 18,234 November. 21,505 76,579 9,267 54,975 38,343 494,889 64,448 105, 352 68,204 142,251 18,330 December. . 21, 510 78,598 9,267 55,112 36,474 495,148 65, 569 114,832 68,205 147,021 18,426 1930—January 21,505 78,641 9,267 55,199 38, 513 495, 299 65,467 108,059 68, 205 147, 006 18,481 February.. 21,494 78,658 9,267 55,362 37,375 476, 025 65,380 108,260 68,207 149, 646 18,529 March 21,695 78,754 9,267 55,502 35, 598 476, 351 65,315 108,270 68, 205 156,171 18,585 April 19, 560 78,785 9,267 55, 592 36, 640 476, 508 65,228 111, 702 67, 207 167,008 18,645 May _ 17,161 78,804 9,267 55, 653 35, 292 476, 778 65,155 111, 714 67,207 177,383 18,725 June 17,193 78,856 9,267 55,653 33,691 476,876 65, 074 111,728 64,023 203,010 18,787 July 17,228 9,267 55, 653 31,574 477,021 65, 024 117, 752 63, 215 233, 752 18,817 August 17,266 78,924 9,267 55,653 33, 301 477, 393 64, 975 123,376 60, 218 249,087 18,884 September. 17,408 63,043 9,267 55, 653 32,576 477, 657 64, 900 123,450 60, 218 249,010 18,921 October 17,466 63,054 9,267 55,653 33,837 477,895 64,807 128, 248 60,218 249,010 18,947 November. 17, 520 63,064 9,267 55,653 34,859 474, 037 64,734 129,696 60,380 249,102 18,990 December. _ 17,567 63, 084 9,267 55,653 32, 688 470, 531 64, 543 137,594 60,447 248,881 19.025 1931—January 17,608 63,111 9,267 55,653 33.939 466,005 64,474 126,325 59, 451 19, 04& February. _ 17,687 63,124 9,267 55,653 34, 508 466,121 64, 390 124, 096 58, 224 248,866 19,068 March 17, 689 63,156 9,267 52, 562 31, 258 466,875 64,318 124, 060 58,249 259,106 19,117 April 17,724 63,660 10, 607 52,709 30,678 467, 457 64, 260 124,061 58,331 259,338 19, 164r J N J D A S M O u u e o e u c l n a p t c y g v y e o t e u e e b m m s m e t r b b b e e e r r r . . . . . 1 1 1 1 1 1 1 1 6 6 1 7 6 2 3 5 , , , , , , , , 9 6 5 7 7 7 2 7 1 1 2 5 5 1 3 6 7 3 9 4 0 7 5 7 6 6 6 6 6 6 6 6 3 7 7 3 6 3 3 3 , , , , , , , , 0 3 6 6 7 7 7 7 5 6 4 8 1 0 3 2 8 4 8 3 7 2 6 7 1 1 1 1 1 9 9 9 2 1 2 0 1 , , , , , , , , 6 8 6 7 6 0 9 1 0 5 1 6 7 3 9 6 1 1 3 2 2 8 2 0 5 5 5 5 5 5 5 5 8 3 3 3 3 3 3 2 , , , , , , , , 9 4 5 9 0 7 0 2 0 8 3 1 5 4 2 0 3 5 4 2 0 0 7 7 2 2 1 8 3 , , , 4 2 7 9 1 8 4 7 6 3 3 3 3 3 3 3 3 2 1 2 0 0 9 7 1 , , , , , , , , 1 4 4 8 0 6 6 2 1 3 7 3 3 6 7 7 9 8 2 2 6 4 4 2 4 4 4 4 4 4 4 4 3 6 6 3 3 3 3 3 3 7 8 9 3 3 9 9 , , , , , , , , 5 6 1 3 5 7 0 0 5 2 3 2 7 1 0 2 5 4 7 0 7 5 0 0 5 5 6 5 5 6 6 6 3 1 3 5 5 7 4 3 , , , , , , . , 1 2 1 1 8 6 7 2 5 0 6 6 5 2 3 2 7 6 0 5 0 3 6 5 4 3 4 4 2 2 1 1 2 2 2 5 2 2 2 6 4 4 2 7 2 9 4 2 , , , , , , , , 8 1 9 4 0 0 7 5 5 9 5 3 5 4 7 9 1 7 0 2 7 0 9 1 5 5 5 5 5 5 5 5 2 2 2 6 5 8 8 7 , , , , , , . . 9 3 9 3 8 8 3 6 3 6 6 3 9 2 3 6 1 6 7 1 7 7 2 6 3 3 2 2 2 2 2 6 1 2 8 9 6 6 1 5 8 0 2 7 1 , , , , , , , 2 0 2 8 9 2 5 2 1 2 9 6 8 9 9 1 5 5 7 4 2 2 3 3 2 2 3 1 2 7 7 0 9 0 0 7 9 , , , , , , , , 1 1 9 1 9 9 1 2 6 1 3 5 4 1 8 2 8 2 4 9 8 7 3 8 - : 1932—January 15,167 67.375 12,837 58, 200 22,504 39, 769 433,852 55.166 472,100 4,117 52,273 328,531 30,957 February.. 14,123 68,046 15,415 57,436 22, 705 36,669 433, 920 55,180 482,076 6,063 52, 273 329, 323 30,966 March 13,216 64, 349 16,120 56,677 28,175 31, 243 434, 080 55,178 470,651 6,258 51,932 329,601 31.021 April 11,666 64,438 16, 734 56,946 34, 323 434, 413 55,191 470, 654 6,453 50,684 330,980 31,031 May 11,211 62,260 17,122 56,498 27, 587 35, 477 434,847 55,205 493,180 6,465 50,569 334,912 31,036 June 10,768 54,341 17, 270 56, 554 27,887 38, 256 435,164 55,206 503,080 8,782 50,443 349,146 31.022 July 10,779 53,865 17,404 56, 751 27,887 34, 265 435,265 55, 208 50,195 356,746 31.026 August 10,904 53,541 17,528 56,857 27,887 34, 518 435,381 55,206 510,213 8,605 49,695 2 367,692 31,026 September. 10,998 54,848 17,600 56,857 27,887 31,691 435,454 55, 203 509,038 8,738 49, 544 2 367,692 31,028 October 10,896 55.376 17, 689 56,857 27,887 34,985 435,624 55, 201 509, 038 48,321 2 367,692 31,035 November. 10,930 56,182 17,895 56,883 27,887 33,700 435, 697 55, 201 492,679 48,328 " 367,692 31,103 December. _ 11,017 56,344 23,828 57,161 27,887 34,907 435,832 55, 202 476,940 9,716 48,328 2 267,692 30,991 1933—January 10,946 57,454 25,132 57,341 27,887 38,066 435,875 55.187 476,948 9,850 49,227 2 367,692 31,001 February. _ 10,926 57,605 26,777 57,479 27,887 49.940 435,902 55.188 9,979 49,849 2 367,692 31,001 March 10,926 55,052 29,652 57,731 27,887 53, 522 435,931 62,153 489,392 10,131 49,436 2 367,692 31,001 April 10,926 55,076 30,174 57,900 27,887 51,687 435,978 71,364 459,883 10,286 49,920 2 367,692 31,014 1 Figures not available. 2 The August 1932 figure is carried forward for subsequent months, as no statement has been issued by the State Bank of the U.S.S.R. since: that time. •p Preliminary. 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372 FEDERAL RESERVE BULLETIN JUNE 1933 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS, 1913-33—Continued EXPLANATORY NOTE The BULLETIN for May 1932, pages 315-318, pub* with July 1931, which were not available last year, have lished a detailed explanation of the foregoing table as it been supplied; and changes in reporting current figures was then compiled. The explanation given at that have been made by Australia, Bolivia, Chile, Colombia, time applies in general to the present table. During Ecuador, and Greece. The tabular statement presented the past year central gold reserves in Belgian Congo below in continuation of that published in the BULLETIN and Siam (as of the last day of the month) and in for May 1932, shows in detail how the end-of-y ear figures Turkey (as of the last Thursday of the month) have for these countries are obtained. Information for Danbeen added to the table; complete data for Brazil zig, which was omitted from the statement last year, is beginning with January 1931 and for Mexico beginning also given. Country Institution Source Items E U at n e i t o e f d c S o t n a v te e s r si d o o n l la i r n s to Australia- 1913-19, Commonwealth Treas- Letter from Commonwealth Gold. 1913-31, 1 Australian ury: State note-issuing de- Bank. pound=$4.8665; 1932, partment. figures reported in dollars. 1920-32, Commonwealth Bank of Australia: Issue department 1920-30, annual report; 1931, cur- Gold coin and bullion. rent balance sheeet; 1932, letter from Commonwealth Bank. Banking department Letter from Commonwealth Gold included in item "Coin, Bank. bullion, and cash balances." Belgian Congo.. Banque du Congo Beige- 1927-31, letter from Banque du Lingots et monnaies d'or 1 belgian franc=$0.0278. Congo Beige; 1932, current balance sheet. Bolivia 1913-28, Banco de la Nacion Annual report 1913-28, Encaje en oro 1913-27, 1 boliviano= Boliviana. $0.3893; 1928-31, 1 boli- 1929-32, Banco Central de Bolivia. 1929-30, annual report; 1931-32, 1929-32, gold coin; gold bars; viano =$0.3650, except letter from Banco Central de 1931-32, in addition "Gold that for " Gold abroad " Bolivia. abroad." 1 boliviano=$0.3125; 1932, 1 boliviano= $0.1923. Brazil. 1913-22, Caixa de Amortizacao.._ League of Nations, Memoran- Government guarantee fund 1913-1926, 1 milreis= dum on Currency (1913-23). $0.5464; 1927-29, 1 milreis=$0.1196; 1930, 1 pound sterling = $4.8665; 1931-32, the original figures in fine grams converted at the i rate of 1 gram=$0.66462. 1923-32, Banco do BrasiL. 1923-29, annual report; 1930, cur- 1913-26, ouro em deposito na rent balance sheet; 1931-32, Caixa de Amortizacao; ouro letter from Banco do Brasil. em deposito em nossos cofres; 1927-29, ouro em deposito na Caixa de Amortizagao; 1931- 32, gold owned by bank. 1927-30, Caixa de Estabilisacao— 1927-29, Wileman's Brazilian Re- 1927-30, gold at the Caixa de view; 1930, letter from Banco Estabilisacao. do Brasil. Chile 1913-25, Cajade Conversion Anuario Estadistico de la Re- 1913-25, fondos de conversion; 1913-32,1 peso=$0.1217. publica de Chile, Vol. VI, oro en areas flscales. Hacienda (1925). 1926-32, Banco Central de Chile.. 1926-30, annual report; 1931-32, 1926-32, oro en el pais; in addicurrent balance sheet and let- tion in 1931-32, earmarked ter from Banco Central de Chile. gold. Colombia Banco de la Republica 1923-31, Revista del Banco de la 1923-31, oro en caja 1 peso=$0.9733; except in Republica, March 1932. 1932 for earmarked 1923-27, letter from Banco de la 1923-27, oro en custodia. gold 1 peso=$0.9524. Republica. 1932, current balance sheet 1932, gold coin; gold bullion; gold earmarked abroad. Danzig Bank von Danzig 1924-31, annual report; 1932, cur- 1924-30, Goldbestand: Miinzen; 1 Danzig gulden=$0.1947. rent balance sheet. 1931-32, gold in barren und Goldmiinzen. Ecuador Banco Central del Ecuador Banco Central del Ecuador, Oro en boveda 1 sucre=$0.2000. Boletin Mensual. Special report Gold abroad. Greece 1913-27, Banque Nationale de 1913, League of Nations, Mem- 1913, gold 1913-27, 1 drachma* Grece. orandum on Central Banks $0.1930; 1928-31,1 drach- (1913, 1918-23). ma =$0.0130. 1932 fig- 1914-27, annual report 1914-27, espeees d'or. ures reported in dol- 1928-32, Banque de Grece 1928-30, annual report; 1931, cur- 1928-31, or monnaye et en lin- lars. rent balance sheet; 1932, letter gots. from Banque de Grece. 1932, gold coin; gold bullion. Mexico Banco de Mexico 1925-30, annual report 1925-26, efectivo en oro, mone- 1 peso oro=$0.4985. das extranjeros, oro; 1927-30, efectivo en oro. 1931-32, letter from Banco de 1931-32, existencias en oro. Mexico. Siam Kingdom of Siam Letter from Ministry of Finance. Government gold reserves 1931, 1 baht=$0.4424; abroad. 1932, 1 baht=$0.3418. Turkey _ Banque Centrale de la Repub- Current balance sheet Encaisse: Or; correspondents Original figures in fine lique. dan3 le pays: or. grams converted at the rate of 1 gram=$0.66462. 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JUNE 1933 FEDERAL RESERVE BULLETIN GOLD PRODUCTION [In thousands of dollars] Production reported monthly Estimated Africa North and South America Far Eas1 Year and month world pr t o io d n uc- Total A So fr u ic th a d R e h s o i - a A W fr e ic st a B C e o lg n i g a o n Canada U S n ta i t t e e s d Mexico Co b l i o a m- Au l s ia tra- Japan India 1930— Total (12 mos.) 430, 725 372, 726 221,526 11,476 4,995 2,699 43,454 47,123 13,813 3,281 9,553 8,021 6,785 1931—February 36 077 30,648 17,427 898 438 246 4,051 4,127 1,011 299 869 702 580 March.. 37,651 32,222 18,791 886 453 256 4,235 4,127 988 340 863 689 594 April . . 37,769 32,340 18,194 917 446 250 4,607 4,127 1,329 278 936 694 561 May 38,227 32, 798 18,901 918 451 230 4,477 4,127 1,208 329 919 716 521 June- 38,208 32, 779 18,594 926 447 240 4,744 4,127 1,103 353 1,092 663 490 July 38,158 32, 729 18,959 947 451 245 4,731 4,127 814 354 933 668 500 August 38,767 33,338 18,859 918 462 254 4,738 4,127 1,228 353 1,229 654 516 September . 38,744 33,315 18,981 905 486 291 5,026 4,127 1,074 256 916 692 562 October 39,846 34,417 19,525 936 473 317 4,955 4,127 1,041 452 1,240 679 673 November. . 38,748 33,319 18,673 941 478 292 4,927 4,127 914 389 1,321 667 590 December 38,811 33,382 18,809 1,041 498 299 4,995 4,127 877 312 1,181 664 579 Total (12 mos.) 459,104 393,957 224,863 11,193 5,524 3,224 55,687 49,524 12,866 4,016 12,134 8,109 6,815 1932—January 39,236 33,464 19, 587 921 480 295 4,834 1 3,597 1,106 450 ,032 628 534 February.., ___ 38,187 32,415 18,935 956 453 286 4,670 13,535 948 386 ,063 657 525 March 39,895 34,123 19,877 996 484 304 5,285 i 3,494 862 404 1,131 741 545 April -. _ _ 39,433 33,662 19,593 976 466 281 5,093 i 3,390 1,057 380 1,164 671 590 May 41,091 35,319 19,970 977 481 298 5,551 i 4,114 1,026 447 ,234 653 567 June 41,187 35,415 19,871 1,011 482 309 5,592 i 4,362 960 405 1,172 647 603 July 41,572 35,800 20, 268 981 546 319 5,176 i 4,610 924 455 1,244 692 585 August 42,734 36,963 20,475 1,019 510 330 5,480 1 4,982 1,138 524 L, 221 696 588 September 42,138 36,366 19,888 1,041 509 304 5,406 15,085 1,122 456 L292 702 559 October 42,351 36,579 20,157 1,044 515 314 5,240 i 5, 271 1,091 455 1,216 727 547 42,091 36,319 20,190 997 526 307 5,220 l 4,858 1 1,158 415 1,376 715 556 December p 41,650 35,875 20,118 1,080 539 294 5,614 i 4,651 1661 353 1,418 668 581 Total (12 mos.) *491,565 422,303 238,931 12,000 5,992 3,642 63,061 2 51,948 v 12,054 5,132 14,563 8,198 6,782 1933—January P 40,995 p 35,223 20,152 1,008 532 280 4,826 1 4, 341 i 1,199 513 1,130 666 576 February p 37,308 p 31,537 18,176 989 533 263 4,718 i 3,039 i 1,034 344 P 1,179 654 608 March _ _ p 42,236 P 36,465 19,658 *l,032 524 302 * 5,378 1 5,209 1 1,137 487 1 1,364 747 628 April p18,503 644 v Preliminary. 1 Figure reported by American Bureau of Metal Statistics. * This aggregate for 1932 of monthly estimates by the American Bureau of Metal Statistics in New York City differs somewhat from the official estimate for the year made by the Bureau of the Mint in cooperation with the Bureau of Mines. The official estimate is $50,626,000. NOTE.—For comparable monthly figures back to January 1929 and for explanation of the table see FEDERAL RESERVE BULLETIN for April 1933, p. 233. For annual figures of world production of gold back to 1873 see annual report of Director of the Mint for 1932, p. 151. GOLD MOVEMENTS [In thousands of dollars] United States Net imports from— Month n T p et o o r t i a t m s l - E la n n g d - France m G a e n r y - g B iu e m l- N la e n th d e s r- Sw la i n tz d er- C a a d n a - Mexico A t r i g n e a n- lo C m o b - ia B I r n i d ti i s a h C H a h o n i n d n g a Japan c o o A th u l e n l r - Kong tries 1931—Total (12 mos.)_ 145,325 6,797-344.514 36,026-15,583 -50,327 -19,768 81,136 22,267 141,263 15,116 8.064 34,240199,286 31.322 1932—January -72,950 -3,199 -83, 783 -71 -12,553 -6,257 -1,759 4,154 1,103 9,110 2,948 4,677 167 9,969 2,542 February -90,567 -236 -98,203 -495 -17,859 -8,672 -254 8,406 950 1,157 2,575 819 19,441 1,795 March -24,671 -23 -37,532 2 -6,341 -6 7,216 2,997 2,683 70 2,948 3,313 April -1,922 -24,527 -3,286 -669 -18,707 -115 7,267 3,329 2,402 2,013 3,967 May -195,514 -7,047 -63,216 -9,710 -19,930 -58,473 -53,554 4,699 1,510 175 3,791 2,441 3,800 June -206,047 -1,910 -111,411 -116 -26,250 -23,168 -62,603 5,424 816 4,866 5,172 3,133 July -3,437 1,405 -21,513 -225 4,573 1,284 240 3,524 4,197 3,064 August 6,103 6,003 -17,950 1,021 -8 5,257 2,273 467 4,783 4,122 September 27,897 50 320 5,543 219 3,904 2,843 2,855 4,205 2,039 October 20,613 1,251 72 2,381 506 1,345 42 6,068 3,600 3,362 1,933 November 21,740 1,376 7 2,685 5,622 893 -1 4,773 2,964 3,322 December 100,859 51,928 16,357 10 8,082 7,546 744 4,697 4,974 "3,"l24 3,353 Total (12 mos.) -446, 213 53.585-441.649 -13,356 -82, 571-96,586 -118,273 64.574 20,087 12,991 3,240 26,597 39.043 49, 719 36,383 1933—J anuary 128,465 50,248 29,490 1,067 15,123 5,274 634 15,193 5,612 3,729 2,042 February i 17,776 i 3,310 -3, 709 -1,546 -600 802 -1, 614 4,206 552 -15 9,446 3,700 3,208 March -22,0811-8,935 -250 -199 -5,005 -681 8, *18 483 990 2,135 -15,413 April -9,973 -2,191 -8,993 -724 327 488 1,281 -3,137 May * -21,770-15,050 -100 187 -6,807 P Preliminary. 1 Differs from Department of Commerce figure since $8,900,000 declared for export on Feb. 28 was not actually taken from the Federal Reserve Bank of New York until Mar. 1. » $17,054 exported to Italy. 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374 FEDERAL RESERVE BULLETIN JUNE 1933 GOLD MOVEMENTS—Continued [In thousands of dollars] Great Britain Net imports from— Month Total South n p e o t r i t m s - U S n ta i t t e e s d France m G a e n r y - g B iu e m l- N l e a t n h d e s r- Sw la i n tz d er- A S m o e u r t i h ca B In ri d ti i s a h S S m t e e r t a t n l i t e t s s - Au l s i t a ra- A d W R e f h r s e i o i c s a - a t , , c o t o r A th i u e n e n s - r - Africa 1931—Total (12 mos.).__-143,729 -13,401 -319,989 33,754 -37,050 -124,101 -60,836 29,446 11,280 33,260 236,921 3,904 1932—January -7,320 -4,129 -64,955 -76 -134 -3,584 -247 105 45,986 746 1,555 17,062 February... -6,182 2,256 -52,712 -58 -756 -7,537 -3,723 2,226 30,661 781 371 20,884 1,426 March...... -2,691 -119 -40,858 3 -53 -3,480 -7,382 1,002 24,340 602 1,750 20,616 887 April 26,148 1,207 -17,795 71 -53 -1,955 -16 17,393 899 1,083 420 May 16,973 7,541 -10,843 -18 -2,571 -11,310 -214 406 11,565 803 915 18,965 1,734 June 35,019 15,897 -9,035 14 -2,767 -9,394 -1,081 12,812 772 794 26,246 760 July 22,675 -1,671 -11,361 4 -4,778 -7,812 -753 500 14,204 2,122 9,661 19,351 3,207 August 1,296 -4,259 -20,269 45 -4,015 -10,438 -75 300 14,279 829 175 19,712 5,010 September.. 5,204 -6,887 -27,521 5 -85 -2,571 -214 187 13,009 584 1,505 25,866 1,326 October 5,814 -284 -24,895 -20 -104 -120 189 11,973 943 870 18,378 1,853 November.. 13,857 -1,634 -13,519 370 -476 -4,188 -88 527 10,488 710 830 20,006 831 December.. -29,582 -58,561 -3,277 -29 -1,104 -6,138 -108 181 13,684 854 23,326 602 Total (12 mos). 81,211 -50,643 -297,040 311-16,896 -71,376 -14,021 5,623 220,394 10,780 20,363 255,305 18,408 1933—January -43,260 -48,314 -2,109 -11 -17,471 9,495 587 793 16,530 -2,120 February- 18,400 -6, 559 -4,623 27 -7,816 -79 374 7,175 554 794 27,815 1,245 March 77,198 11,821 3,406 5,003 -5, 225 -588 296 9,178 461 22,659 28,923 2.556 April 64, 767 -6 -1, 519 18,092 128 -893 10,278 1,001 20,316 19,343 -2,082 May p 106, 282 3,151 37, 205 2,082 18,121 -1,601 11,881 1,935 22,106 1 9,150 Germany Net imports from— Month All other countries 1931—Total (12 mos.) 1032— January.... 74,007 65,062 6,755 -9,899 16 278 4 February.. 184,171 82,580 -4 9,601 -1,592 71 49 -5,647 March 147,604 71,279 13,889 12,581 ' 17 -16,224 170 -2,776 April 60,340 -15 2,019 428 -5,398 -8,328 42 May 17,734 17,174 14,232 2,582 1,999 -1,119 17 -7,539 June 168,000 152,072 7,541 5,737 4,601 -8,234 -5,800 -7,691 3,399 2,809 July 31,954 16,746 12,472 -5 483 -1,001 -4,753 -5,435 554 -4,087 August 42,940 24,149 16,241 5,382 -17 13 1, 4,622 -1,791 September. 4,424 3,918 1,448 249 8 3,456 5,410 -361 October 19,995 329 565 -270 33 41 5,461 November. 26,003 6,122 672 -186 -6,169 2,584 6,275 December.. 34,479 2-3,138 4,306 17 -3,331 6 Total (12 mos.) 1933—January.... -37,428-35,361 2,900 33,814 -1,126 -226 4,423 4 -14 February... -1,605 -144 2,559 2,80S -7,127 -376 13,076 -5,990 -10, 458 March 15,931 9,287 1,005 27, 778-23,356 -5C 13,164 -7,377 -4,979 April v 48,252 18,583 2,283 67C -6, 377 10, 574 68, 74S -51,915 -4,544 1 $10,425 imported by England from Canada. »$21,292,000 exported by France to Belgium. 2 $29,233,000 imported by France from Spain in July. 9 Preliminary figures. NOTE—Germany—The aggregates of the official monthly figures for gold imports in 1932 differ somewhat from the revised totals published for the year as a whole. Since German figures for individual countries are subject to semiannual revision, those given for January-April 1933 are preliminary in character. Figures for total net imports are final. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1933 FEDERAL RESERVE BULLETIN 375 GOLD MOVEMENTS—Continued [In thousands of dollars] Netherlands Net imports from— Month Total net imports U S n ta i t t e e s d England France Germany Belgium Poland Sw la i n tz d er- B I r n i d ti i s a h All other 1931—Total (12mos.)--- 198,619 39,413 117,591 -21,024 56,059 -1,428 -365 4,553 4,548 1932—January 7,130 7,747 3,100 -3,521 -304 -384 -790 -516 1,166 632 February 8,810 5,446 -9,900 320 -462 -1,628 -354 295 81 March 6,342 3,870 -11,028 34 -821 -511 -171 476 -77 April 7,737 2,799 867 -771 8,445 -1, 791 -2,325 366 147 May 58,256 55,317 5,470 -3,258 7,429 -713 -3,415 -3,466 785 107 June 54,107 47,324 8,397 -1, 786 9,763 -760 -3,385 -5,849 379 24 July 4,983 5,565 -276 5,376 -5,242 -482 -847 941 -52 August 7,204 8,715 -334 -1,280 -26 -281 -579 3,212 -2,222 September -13,797 -6,367 1,198 -1,708 -3,496 1,759 -923 -402 1,994 -5,852 October -6,230 -1,916 1,252 -61 -5, 729 -217 42 1,006 -14 November -4,857 -3,765 1,939 -3,085 -1,313 -188 -537 3,030 -52 December 894 -9,668 4,251 52 3,745 963 -20 -1,134 2,773 -68 Total (12mos.) 116,149 106, 623 50,070 -34,009 -12,727 -13,630 -16,137 16,423 -7,346 1933—January - 1,898 -14,101 14,069 -837 2,009 958 -976 -1,100 2,199 February. _ _ 933 3,432 -8,177 6,722 -10, 300 5,055 881 3,452 -166 34 March___ -9, 320 10, 785 3,436 -19, 367 4,986 -7,009 -506 -2, 324 679 -1 April -12, 565 -567 -12,429 2,283 -1,064 -264 -870 -50 Switzerland British India Net imports from— Net imports from— In- Increase Month Gold or de- or de- Total Total pro- crease crease net im- net im- duc- (-)in (-)in ports U S n ta i t t e e s d E la n n g d - France m G a e n r- y A So fr u ic th a N la e e n r t d - h s - o A th l e l r ports U S n ta it te e s d E la n n g d - o A th l e l r I t n io d n ia i n 2 g e o m s v e e e r n v rn t e - h in p o r I l i d n v i d n a i t g a e s * in India 1931—Total (12 mos.)- 222,751 36,422 41,301 19, 317 39,684 72,760 13,220 -95,875 -17,665 -72,691 -5, 521 6,832 33,532-122,575 1932—January 5,653 2,067 1,300 1,972 10 290 13 -24,029 -2,853 -21,429 253 535 18 -23,512 February 17,658 1,411 5,725 5,423 5,731 76 -707 -17,672 -407 -17, 269 44 527 -2 -17,145 March 4,698 82 5,733 -3,952 2,769 -18,697 -91 -18,803 197 546 -7 -18,144 April 2,538 65 116 -95 -165 2,308 —11,812 -11,229 -374 592 86 -11,30ft May 46,051 41,034 116 1,718 -52 2,949 286 -8,935 -9,007 72 569 -8,365 June... 80,872 70,247 1,734 3,554 -85 5,630 -209 -13,227 -167 -13,155 95 605 -12,622 July 14,993 9,779 111 3,734 -51 1,507 -87 -16,437 -374 -14,575 -1,' 586 -15,851 August 1,503 81 90 718 38 744 -260 -11,674 -2,775 -7,979 —920 589 -11,085- September -604 -361 154 -540 -34 453 -277 -17,201 -5,978 -9,835 -1,388 561 34 -16,674 October -3,385 -50 82 -3,087 -102 -280 48 -14,482 -4,820 -9,010 -652 548 -13,934 November -1,395 -7 85 -2,347 -67 480 461 -16,662 -2,420 -13,244 -997 557 -16,105 December 1,203 5 320 -111 837 55 —24,964 -18,002 -6,286 -676 583 "—1 -24,380 Total (12 mos.) 169,786 124,354 15,342 7,418 7,8 10114,996 -195,765 -38,061-151,880 -5,823 6,798 127-189,094 1933—January 4,658 123 2, 1,176 1,040 -10,247 -1,965 297 576 -11,340 February 8,502 -14 82 6,987 2,461 -937 -9, 589 -3,082 -116 610 -1 -12,177 March 24, 440 653 907 21,306 3,802-2, 236 -5,314 -5,833 -1,576 628 -12,094 April -12,078 -307 -10,745 994-I,1"" P628 v-13, 261 1 Exported from Netherlands to Czechoslovakia in August, $2,199,000; in September, $5,847,000. 2 Reported monthly production of the Mysore State plus $1,387 representing the average monthly production of the rest of India in 1931. » Figures derived from preceding columns. Net imports plus production minus increase in Government reserves in India. < $1,777,000 was exported from India to Netherlands, e $1,640,000 was exported from India to Netherlands. TP Preliminary. NOTES.—Netherlands—The aggregates of the official monthly figures for gold exported to Germany and gold imported from the world in 1932 differ somewhat from the revised totals published for the year as a whole. British India.—From April through June 1932 figures for net imports from individual countries are preliminary and subject to revision Figures for total net imports, gold production, and increase in government and private holdings are final unless otherwise indicated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

376 FEDERAL RESERVE BULLETIN JUNE 1933 GOVERNMENT NOTE ISSUES AND RESERVES [Figures are for last report date of month] 1933 1932 1933 1932 Apr. Mar. Feb. Apr. Apr. Mar. Feb. Apr. Argentine Conversion Office (millions of Canadian Minister of Finance (millions of gold pesos): Canadian dollars): Gold 257 257 257 257 Gold reserve against Dominion notes. 70 70 72 64 Notes issued * 582 587 588 544 Advances to banks under finance act. 39 48 42 28 Irish Currency Commission (thousands of Dominion notes: pounds sterling): Issued 172 181 176 153 Legal tender note fund: Outside chartered bank holdings. 30 29 27 29 British legal tender and bank Indian Government (millions of rupees): balances 28 82 86 112 Gold standard reserve: British securities _ 7,613 7,449 7,250 7,155 Gold 181 184 187 388 Notes issued 7,267 Foreign exchange _ 352 350 347 145 Consolidated bank notes:2 7,641 7,582 7,336 Paper currency reserve: Issued _. _. 4,642 4,630 4,625 4,406 Gold 263 260 257 55 Deemed such under sec. 60 (4) of Silver coin and bullion 1,116 1,119 1,104 1,105 currency act, 1927.— 1,334 1,344 1,353 1,560 Other assets 388 390 392 523 Notes issued 1,767 1,769 1,753 1,683 1 Includes a small quantity of subsidiary coin. 2 The figures of consolidated bank notes issued represent daily averages for the 4 weeks ended Apr. 1, Mar. 4, Feb. 4,1933, and Apr. 2,1932. The figures for notes deemed to be consolidated bank notes are as of the close of business on these dates. BANK FOR INTERNATIONAL SETTLEMENTS [In thousands of dollars converted from Swiss francs at par; 1 Swiss franc=$0.1930) 1933 1932 1933 1932 Resources Liabilities Apr. 30 Mar. 31 Apr. 30 Apr. 30 Mar. 31 Apr. 30 Cash on hand and on current account with Short-term deposits: banks _ 1,558 2,199 2,991 Central banks for own account: Demand funds at interest 4,554 10,141 13, 781 Demand 19,968 49,176 61,747 Rediscountable bills and acceptances (at Time—Not exceeding 3 months 31,707 38,007 58,017 cost): Commercial bills and bankers' accept- Total- 51, 675 87,183 119, 764 ances _ 45,300 53,108 87, 554 Treasury bills 45, 837 49, 690 30,147 Central banks for account of others: Demand _ 1,940 2,567 11,855 Total.. 91,137 102,798 117,701 Other depositors: Demand 643 634 769 Time funds at interest—Not exceeding 3 Time—Not exceeding 3 months 631 1,066 months _ 18,379 35, 841 48,927 Long-term deposits: Annuity trust account 29, 545 29,652 29,677 Sundry bills and investments: German Government deposit 14, 773 14,826 14,839 Maturing within 3 months: French Government guaranty fund... 11, 678 13, 217 13,249 Treasury bills 3,907 2,784 17,925 Sundry investments^ 13,843 13, 657 11,521 Total 55,996 57, 696 57,765 Between 3 and 6 months: Capital paid in.. 24,125 24,125 20,941 Treasury bills 4,596 4,532 Sundry investments 6,905 6,813 } 4,584 Legal reserve fund 254 254 108 Over 6 months: Dividend reserve fund- 519 519 211 S T u re n a d s r u y r y in b v i e ll s s tments 116 \ f 1,1 11 2 9 7 188 Othe G r e l n ia e b ra il l i t r i e e s s erve fund._. 8 1 . ,0 3 3 7 8 0 6 1 , , 5 0 1 3 4 8 6, 4 6 2 4 2 8 Total 29,368 29,032 34,217 196 1,162 1,930 Other resources Total resources. 145,191 181,173 219,549 Totfil liabilities... 145,191 181,173 219,549 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1933 FEDERAL RESERVE BULLETIN 377 CENTRAL BANKS [For explanation of tables on this page, see BULLETIN for February 1931, pp. 81-83] Resources of banking department Liabilities of banking department Gold (in Note Bank of England m d i e e s p s n a u t r ) e t - > Cash reserves Dis a c n o d unts Se t c ie u s ri- cir ti c o u n la- Deposits l O ia t b h i e li r - Coin Notes advances Bankers' Public Other ties Millions of pounds sterling: 1932—Mar. 30 120.8 35.3 11.7 86.8 360.5 54.6 27.2 34.4 18.2 Apr. 27 120.8 43.0 11.5 79.4 352.8 58.3 23.4 35.3 17.7 May 25 125.0 45.8 12.2 93.2 354.2 77.5 23.6 32.9 17.8 June 29 136.1 48.1 14.9 93.5 363.1 86.6 18.0 34.7 18.0 July 27 137.7 43.4 15.3 92.5 369.3 88.2 11.2 34.6 18.1 Aug. 31 138.9 48.6 12.2 92.2 365.3 79.5 20.7 35.4 18.2 Sept. 28 139.4 1.0 54.6 12.1 88.0 359. 8 80.6 23.4 33.4 18.2 Oct. 26 139.4 1.0 56.0 11.6 85.4 358.4 77.3 25.4 33.6 17.7 Nov. 30 139.4 1.0 55.6 11.9 87.1 358.8 90.5 10.1 37.1 17.8 Dec. 28 119.8 .8 23.6 18.5 120.1 371.2 102.4 8.9 33.8 18.0 1933—Jan. 26 123.6 .8 45.4 11.6 107.9 353.2 103.4 11.7 32.5 18.1 Feb. 22 142.2 .7 61.0 11.9 104.0 356.2 98.3 26.2 35.0 18.2 Mar. 29- 171.8 .8 79.7 11.8 74.9 367.1 92.8 21.2 35.0 18.2 Apr. 26 185.9 .9 74.0 11.6 80.0 371.9 100.9 10.8 37.1 17.7 May 31 » 186.3 1.1 72.3 11.2 83.5 374.1 77.5 33.2 39.5 17.8 Resources Liabilities Bank of France Gold e F x o c r h e a i n g g n e Do b m il e ls stic Se lo c a u n ri s ty N s e e b g c l o u e t r i i a - - Other ci N t r i c o o u t n l e a- Gove D rn e - posits l O ia t t i b h e i s e l r ities* ment Other Millions of francs: 1932—Mar. 25.. 76,832 12,632 4,820 2,716 6,881 8,371 81,782 3,526 24,962 1,980 Apr. 29- 77,862 11,800 4,690 2,735 6,881 8,697 82,774 3,111 24,827 1,953 May 27— 79,470 9,001 4,160 2,700 6,881 8,684 81,418 3,432 24,128 1,917 June 24._ 82,100 6,332 3,929 2,715 6,626 8,634 80,667 2,881 24,621 2,167 July 29.. 82,168 5,482 3,905 2,747 6,621 8,994 82,118 3,740 22,033 2,025 Aug. 26.. 82,239 5,389 3,467 2,761 6,621 8,878 79,912 3,982 23,426 2,035 Sept. 30.. 82,681 4,977 2,604 2,783 6,621 9,686 82,459 3,010 21,876 2,009 Oct. 28-. 82,909 4,984 3,637 2,764 6,621 9,145 82,205 4,553 21,229 2,071 Nov. 25-. 83,342 4,853 3,266 2,500 6,621 9,008 81,536 2,931 22,969 2,153 Dec. 30... 83,017 4,484 3,438 2,515 6,802 9,196 85,028 2,311 20,072 2,041 1933—Jan. 27... 82,167 4,434 3,142 2,537 6,680 9,172 83,314 2,269 20,474 2,074 Feb. 24. _ 81,017 4,401 3,303 2,580 6,647 9,119 83,986 2,226 18,731 2,124 Mar. 31.. 80,409 4,376 3,352 2,714 6,621 9,801 2,235 16,850 2,093 Apr. 28... 80,866 3,846 3,805 2,649 6,595 8,861 84,992 2,340 17,181 2,109 May 26 *. 80,951 3,887 3,449 2,675 6,582 (3> 83,267 2,265 18,393 (3) Resources Liabilities Reserves Reichsbank Gold e F x o c r h e a i n g g n e Tre b a il s l u s ry b c i O l h l e s t c h ( k e a s r n ) d Se lo c a u n ri s ty Securities a O s t s h e e ts r ci N t r i c o o u t n l e a- Deposits l O ia t t i b h e i s e li r - Millions of reichmarks: 1932—Mar. 31 879 142 3,258 290 362 1,044 4,231 578 1,226 Apr. 30 859 131 3,146 282 362 977 4,128 405 1,249 May 31 863 129 2,990 257 363 1,032 3,961 431 1,262 June 30 832 130 3,100 261 364 1,038 3,984 473 1,271 July 30 766 128 3,108 224 365 975 3,967 380 1,267 Aug. 31 768 157 3,009 207 366 960 3,817 408 1,279 Sept. 30 796 133 2,991 242 362 940 3,755 451 1,298 Oct. 31 817 123 2,857 198 957 3,620 389 1,345 Nov. 30 827 110 2,731 207 959 3,631 418 1,314 Dec. 31 806 114 2,806 176 398 1,114 3,560 540 1,313 1933—Jan. 31 822 101 2,459 93 401 1,097 3,338 345 1,333 Feb. 28 769 152 2,439 279 401 1,040 3,356 402 1,343 Mar. 31 739 97 2,763 210 401 869 3,520 443 1,169 Apr. 29 411 100 3,142 177 317 682 3,538 406 791 May 31* 372 77 3,078 166 317 618 3,469 439 782 * 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. From Aug. 1,1931. to Mar. 31,1933, an increase of £15,000,000 in the fiduciary issue (and securities held as cover) was authorized by the British Treasury under section 8 of the Currency and Bank Notes Act, 1928. 1 Issued by the independent office for retirement of public debt (Caise Autonome d'Amortissement). * Not yet available. * Preliminary figures. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

378 FEDERAL RESERVE BULLETIN JUNE 1933 CENTRAL BANKS—Continued [Figures are for last report date of month] 1933 1932 1933 1932 Central bank Central bank Apr. Mar. Feb Apr. Apr. Mar. Feb. Apr. National Bank of Albania (thousands Central Bank of China—Continued of Albanian francs): Deposits—Government 121,315 116,694 79,133 Gold- _ 5,490 5,488 4,968 Bank 59,896 54,724 14,64a Foreign exchange 32,444 32,683 28,001 Other 11,121 8,432 5,530 Loans and discounts 2,902 3,020 3,901 Other liabilities 63,795 62,445 41,186 Other assets 3,612 2,593 4,793 Bank of the Republic of Colombia Note circulation 13,956 13,480 10,959 (thousands of pesos): Demand deposits 19,209 19,996 18,846 Gold at home and abroad 14,307 13,689 13,029 7,945 Other liabilities 11,283 10, 310 11,858 Foreign exchange 3,455 c 3,226 4,090 6,46? Commonwealth Bank of Australia Loans to member banks __ 3,448 4,656 4,415 13,432; (thousands of Australian pounds): Note circulation 24, x81 22,870 21,816 17,851 Issue department—Gold and Deposits 20,609 20,766 21,149 15,933 English sterling 11,507 11,507 11,499 10, 500 National Bank of Czechoslovakia Securities 25,889 27,640 35,595 41, 746 (millions of Czechoslovak crowns): Banking department: Gold_. _ 1,708 1,708 1,709 1,642. Coin, bullion, and cash 1,035 1,107 1,072 1,057 Foreign balances and currency... 1,009 1,005 1,011 1,194 London balances 19, 543 21,892 16, 734 18,094 Loans and advances._ _. 1,696 1,614 1,011 1,172 Loans and discounts 18, 051 17,835 16,886 16,286 Assets of banking office in liqui- Securities 34,746 35,411 29,402 27,333 dation -. 0 0 0 Deposits 74, 766 77,183 66, 595 Note circulation .. 6,182 6,272 5,602 6,740 Bank notes in circulation 43,122 42,272 42,135 47,018 Deposits _ 733 601 625 375 Austrian National Bank (millions of Danish National Bank (millions of schillings): kroner): Gold 150 150 150 179 Gold ___ 133 133 133 145 Foreign exchange of the reserve.. 39 39 39 35 Foreign bills, etc _ — 10 11 10 25 Domestic bills .-. 279 287 301 Loans and discounts 72 146 Government debts 659 660 661 Note circulation 337 331 316 335- Note circulation 912 919 859 Deposits 44 50 46; Deposits -_ 179 170 184 113 Bank of Danzig (thousands of Dan- National Bank of Belgium (millions zig gulden): of belgas): Gold.... 22,934 22,933 22, 410 21,816 Gold... - :-- 2,671 2,669 2,630 2,523 Foreign exchange of the reserve.. 11,511 14,892 8,814 28,642 Domestic and foreign bills 783 804 775 937 Other foreign exchange 1,334 460 382 67a Loans to State 363 363 363 Loans and discounts 10, 974 10,603 12,368 8,420 Note circulation 3,620 3,559 3,513 3,653 Note circulation 35, 924 36, 219 34, 769 41,244 Deposits 338 418 384 221 Deposits _ 5,552 7,201 4,653 14,166 Central Bank of Bolivia (thousands Central Bank of Ecuador (thousands of bolivianos): of sucres): Gold at home and abroad 23, 586 23, 466 21,336 Gold at home and abroad 14,781 14, 810 13,95ft Foreign exchange 3,784 5,052 5,073 Foreign exchange 1,059 1,846 171 Loans and discounts 29, 576 29,862 24, 572 Loans and discounts 39,332 37,978 15,971 Note circulation 40,994 39, 884 26,924 Note circulation 26, 396 25,533 18,561 Deposits 38, 574 42, 230 12,400 Deposits... 19,803 20,180 5,728; Bank of Brazil (millions of milreis) National Bank of Egypt 2 (thousands Currency 553 569 534 .303 of Egyptian pounds): Correspondents abroad 135 130 213 120 Gold. _. 6,663 6,663 6,410 Loans and discounts 2,634 2,622 2,609 2,019 Foreign exchange — 3,318 2,913 2,901 Note circulation 90 110 130 170 Loans and discounts 5,344 5,829 8,403. Deposits 2,846 2,957 2,861 2,034 British, Egyptian, and other National Bank of Bulgaria (millions G o vernment securities 34,673 33,332 30,174 of leva): Other assets 3,322 3,825 3,498 Gold 1,520 1,520 1,520 1,513 Note circulation 17,872 17,852 19, 580 Net foreign exchange in reserve. _ 3 20 6 49 Deposits—Government 5,798 4,396 Total foreign exchange 61 95 102 278 Other 21,160 21,314 19, 620 Loans and discounts 833 778 718 747 Other liabilities- 7,622 7,597 7,792 Government obligations 2,873 2,873 2,873 2,965 Bank of Estonia (thousands of Note circulation 2,730 2,595 2,452 2,827 krooni): Other sight liabilities 1,380 1,592 1,665 1,419 Gold 17,845 17, 842 17,838 7,325 Central Bank of Chile (millions of Net foreign exchange 2,145 2,238 1,684 12, 720 Loans and discounts 21,281 21, 581 22,180 24,146 Gold at home and abroad 87 85 95 Note circulation 31,530 31,088 31,194 33, 509 Foreign exchange for account of: Deposits—Government 3,247 3,591 3,387 4,915 Bank 70 70 70 Bankers' 7,105 7,237 6,660 6,881 Exchange commission 6 5 20 Other 2,638 3,128 3,240 2,102 Loans and discounts 472 472 322 144 Bank of Finland (millions of mark- Securities 349 349 471 250 kaa): Note circulation 502 472 352 Gold 304 304 304 Deposits 352 357 362 129 Balances abroad and foreign Central Bank of China 2 (thousands credits... _ 772 773 772 598 of yuan): Foreign bills _ 337 336 328 224 Gold 2,415 1,952 3,221 Domestic bills.. _ 759 785 783 77& Silver 88,353 66,825 43,826 Note circulation. 1,178 1,183 1,126 1,224 Due from banks abroad 10,384 9,398 6,904 Demand liabilities 392 431 586 218 Due from domestic banks 40,923 64,271 24,732 Bank of Greece (millions of drach- Loans and discounts 118,874 108,819 64,075 mas): Securities 7,667 8,061 5,579 Gold and foreign exchange 2,368 2,204 2,009 991 Other assets 32,760 29,859 19,980 Loans and discounts 1,880 1,572 1,583 1,351 Note circulation 45,249 46, 890 27, 825 Government obligations 3,368 3,368 3,368 3,311 1 Gold coin and bullion. 2 Items for issue and banking departments consolidated. v Preliminary. « Corrected. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

379 JUNE 1933 FEDERAL RESERVE BULLETIN CENTRAL BANKS—Continued 1933 1932 1933 1932 Central bank Centra] bank Apr. Mar. Feb. Apr. Apr. Mar. Feb. Apr. Bank of Greece-^-Continued Bank of Portugal (millions of escub, Note circulation _ 4,627 4,547 4,564 4,210 dos): O ther sight liabilities _ _ 3,213 2,603 2,354 864 Gold _ 671 379 Liabilities in foreign exchange., _ 173 165 192 796 Other reserves 399 416 516 538 National Bank of Hungary (millions Discounts and advances 326 329 332 319 of pengos): Government obligations 1,053 1,054 1,054 1,058 old 97 97 97 96 Note circulation 1,859 1,916 1,896 1,873 Foreign bills, etc 17 15 16 15 Other sight liabilities 647 587 637 Loans and discounts 468 456 463 430 National Bank of Rumania (mil- Advances to treasury 51 51 51 54 lions of lei): Other assets 19 17 15 18 Gold 9,650 9,622 9,580 9,491 Note circulation 357 355 343 417 Foreign exchange of the reserve. _. 731 685 615 355 Deposits 56 59 70 61 Other foreign exchange 52 52 19 20 Miscellaneous liabilities 209 202 200 108 Loans and discounts 10,082 10,156 10,156 13,382 Bank of Italy (millions of lire): State debt 5,726 5,726 5,726 5,767 Gold at home 6,517 6,291 6,174 5,630 Note circulation 21, 322 21,453 22,904 Credits and balances abroad 584 802 962 1,484 Demand deposits 7,658 7,285 7,528 4,439 Loans and discounts 5,602 5,708 5,812 5,845 South African Reserve Bank (thou- Total note circulation 13,070 13,117 13,048 13,375 sands of South African pounds): Public deposits 300 300 300 300 Gold 10, 621 10, 262 7,053 Other deposits 1,189 1,203 1,278 1,373 Foreign bills 18, 296 14,437 10,555 71 Bank of Japan (millions of yen): Domestic bills 814 815 1,100 1,682 Gold 425 425 425 429 Note circulation 10,023 9,847 8,604 8,096 Advances and discounts 739 733 733 853 Deposits—Government 1,428 1,368 1,744 1,237 Government bonds 604 438 446 117 Bank 20,835 19, 690 15, 010 4,030 Notes issued 1,180 1,072 1,095 1,128 Other__ 2,026 1,259 815 233 Total deposits 501 491 424 444 Bank of Spain (millions of pesetas): Bank of Java (millions of florins): Gold 2,259 2,259 2,259 2,251 Gold 107 112 111 103 Silver 623 614 559 Foreign bills 21 19 18 24 Balances abroad. _ 283 281 287 Loans and discounts 50 44 42 48 Loans and discounts 3,169 2,503 2,589 3,256 Note circulation 203 206 207 224 Note circulation 4,742 4,751 4,801 4,880 Deposits 35 34 28 Deposits 810 975 961 917 Bank of Latvia (millions of lats): Bank of Sweden (millions of kronor): Gold 42 40 34 Gold 266 232 206 206 Foreign-exchange reserve 5 13 Foreign bills, etc 258 308 261 120 Bills.._. 67 74 Loans and discounts 125 126 107 352 Loans 53 56 Note circulation 559 590 542 576 Note circulation 34 39 Deposits 268 227 183 232 Government deposits 65 75 Swiss National Bank (millions of Other deposits 92 78 francs): Bank of Lithuania (millions of litu): Gold 2,383 2,536 2,529 2,439 Gold _ 49 50 Foreign balances and bills 8 39 112 Foreign currency 13 21 Loans and discounts 53 54 50 106 Loans and discounts 90 101 Note circulation 1,557 1,570 1,497 1,529 Note circulation 94 101 Demand deposits 903 1,042 1,148 1,132 Deposits 55 55 65 Central Bank of the Republic of Netherlands Bank (millions of flor- Turkey (thousands of Turkish ins): pounds): Gold.... _... 930 949 1,020 906 Gold... 21, 769 21,441 21,119 13, 634 Foreign bills 73 73 73 Foreign exchange 682 337 1,202 2,966 Loans and discounts 111 108 106 Government securities 153,740 154,300 54,456 156, 700 Note circulation 954 951 959 Other securities 28,332 28,154 28,154 27,126 Deposits 200 225 283 Other assets 31, 932 33, 779 34,379 17,850 Bank of Norway (millions of kroner): Note circulation 162,428 63,144 168,429 Gold 151 151 144 155 Deposits 18, 525 20,436 22,849 6,164 Foreign balances and bills 29 30 35 17 Other liabilities 55, 501 54, 586 53,316 43, 684 Domestic credits 217 214 221 267 Bank of the Republic of Uruguay Note circulation 303 301 293 312 (thousands of pesos): Foreign deposits 2 2 2 2 Gold 48, 269 47,801 48, 201 49,008 Total deposits. 79 81 Loans and discounts 101,103 103,897 U4,315 102, 675 Central Reserve Bank of Peru (thou- Other assets 41,995 41,032 39, 781 36,015 sands of soles): Note circulation 81,713 83,341 86,148 79,985 Gold.. '39,020 41, 665 Deposits—Demand 28, 440 29, 676 29,761 30,871 Foreign exchange. 825 550 Time 41,149 40, 090 38,064 38,041 Bills 20, 541 13, 337 Judicial and admin- N De o p te o s c i i t r s culation 50 4, , 4 6 4 6 1 3 46 2 , , 1 3 6 1 2 8 Other liabiliti i e s s trative 3 3 7 , , 0 0 1 5 0 5 3 2 6 , , 9 6 9 33 0 35 2 , , 9 3 6 5 6 9 35 3 , , 1 6 7 3 0 0 National Bank of the Kingdom of Bank of Poland (millions of zloty): Yugoslavia (millions of dinars): Gold—_ 491 491 513 574 Gold. 1,762 1,761 1,761 1,763 L N Fo o o r a t e e n i s g c n a ir n c e d u x l c d a h i t s a io c n n o g u e nts 1,0 6 2 2 6 1 5 7 1, 7 0 9 0 1 7 1 9 9 6 9 8 4 9 4 9 1, 7 1 1 4 5 5 0 8 8 N A L Fo o d o r a v t e e n a i s g n c n c i a r e n c e s d u x t l c d o a h i t a s i S o c n t n o g a u e te nts __ 4 2 2 , , , 5 4 3 1 1 0 4 7 3 2 3 7 4 2 2 , , , 5 3 4 1 4 6 1 7 9 4 2 0 4 2 2 , , , 5 4 3 1 1 8 8 9 1 6 8 0 2 2 5 , , , 2 3 3 0 4 0 4 04 8 4 5 Other sight liabilities 172 139 152 129 Other sight liabilities ^ 940 873 353 v Preliminary. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

380 FEDERAL RESERVE BULLETIN JUNE 1933 COMMERCIAL BANKS 1932 1933 Country Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. Argentina (millions of gold pesos): Bank of the Nation: Gold 1 1 1 1 1 1 1 1 1 1 1 1 Other cash 105 121 136 127 132 128 128 128 114 124 123 126 Loans and discounts 685 688 696 688 679 679 668 671 664 664 660 658 Deposits ... 644 664 712 702 696 690 681 680 659 674 665 678 Other banks in Buenos Aires: Gold 1 1 1 1 1 1 1 1 1 1 1 1 Other cash - 206 212 218 218 228 243 248 250 263 258 258 260 Loans and discounts 794 783 775 769 761 754 747 745 740 739 739 737 Deposits - 922 914 907 905 909 926 928 929 937 918 923 913 Canada (millions of Canadian dollars): Assets entirely in Canada: Cash in vault* 150 154 166 161 154 151 161 2Q2 191 185 180 177 172 Cash in central gold reserves 23 23 23 25 22 23 21 19 20 19 19 22 21 Security loans - 122 114 110 112 114 115 117 108 103 100 97 96 94 Other current loans 1,070 1,057 1,037 1,028 1,004 1,003 1,018 999 964 946 924 925 913 Security loans abroad 73 65 74 76 96 95 88 99 91 84 76 79 82 Securities - 666 663 669 674 703 699 727 759 778 784 797 793 806 Liabilities entirely in Canada: Notes in circulation „ 125 119 126 123 117 124 120 116 115 108 "112 «123 124 Individual demand deposits 495 498 489 462 475 481 493 472 466 446 446 454 484 Individual time deposits. _. 1,393 1,387 1,373 1,363 1,367 1,359 1,371 1,379 1,378 1,383 1,397 1,389 1,400 England (millions of pounds ster- Cash in vault and at bank 170 176 188 188 190 190 189 190 203 211 205 204 216 Money at call and short notice. 111 110 111 120 114 110 112 112 123 110 108 105 101 Advances and discounts 1,105 1,102 1,114 1,138 1,176 1,179 1,171 1,161 1,167 1,179 1,137 1,100 1 087 Investments - — . - 272 284 324 333 348 367 396 409 456 455 480 492 499 Deposits 1,643 1,661 1,727 1,765 1,813 1,826 1,853 1,859 1,944 1,943 1,917 1,886 1,891 France (millions of francs): Bills and national-defense bonds. 18,043 18,998 18,994 20,136 18,745 19,034 19, 757 21,266 22,014 22,209 21,287 20,261 Loans and advances 8,312 8,296 8,593 8,188 8,456 8,490 8,287 8,086 8,049 8,023 8,650 8,808 Demand deposits 35,929 35,826 36,351 36,031 36,148 36,372 36,197 37,257 36,491 35,308 34,477 34,163 Time deposits 1,239 1,284 1,250 1,263 1,286 1,280 1,342 1,312 1,268 1,221 1,117 1,045 Germany (millions of reichsmarks): Bills and treasury notes 1,613 1,652 1,660 1,661 1,665 1,651 1,674 1,631 1,736 1,676 1,699 Due from other banks 267 290 257 263 242 256 242 245 235 229 217 Miscellaneous loans 6,235 6,160 5,898 6,813 5,736 6,745 5,706 5,668 5,396 5 353 5 180 Deposits 7,539 7,562 7,641 7,457 7,397 7,439 7,401 7,307 7,159 7,106 6,934 Acceptances - 872 851 815 796 782 773 775 770 743 734 727 Japan (millions of yen): Cash on hand 136 215 156 117 212 197 185 302 286 166 186 233 284 Loans . . 2,248 2,25f 2,252 2,234 2,219 2,187 2,165 2,188 2,219 2,171 2,153 2,132 2,093 Deposits - - 1,946 1,949 1,963 1,973 2,027 2,019 2,042 2,125 2,133 2,132 2,133 2,135 2,185 c Corrected. * Gold, Dominion notes, and subsidiary coin. NOTE.—Banks included are as follows: Canada—chartered banks; England—9 London clearing banks; France—4 commercial banks; Germany—5 Berlin banks; Japan—Tokyo banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1933 FEDERAL RESERVE BULLETIN 381 DISCOUNT RATES OF CENTRAL BANKS Date effective o B f l a E a n n n d k g- F B ra a o n n f k ce G R b e e a r ic m n h k a s n - B It a o a n f ly k N l B e a a n th n d e k s r- N S B at w a io n is n k s al Country J R u a 1 n t e e I s n i n e c f e f — ect Country J R u a 1 n t e e I s n i n e c f e f — ect In effect June 1,1931. 2 5 5H 2 2 Albania 8 July 1,1931 Japan 4.38 Aug. 18,1932 June 13 7 Austria 5 Mar. 24,1933 Java 4H Mar. 11,1930 July 16 10 Belgium 33^ Jan. 14,1932 Latvia Jan. 1,1933 July 23 3H Bolivia 6 July 5,1932 Lithuania 6 Apr. 1,1930 July 30 -- 4V6 Aug. 1 15 Bulgaria 8 May 25,1932 Norway May 24,1933 Aug. 12 10 Chile Aug. 23,1932 Peru 6 May 20,1932 Sept. 2 8 Colombia 5 Sept. 19,1932 Poland 6 Oct. 21,1932 Sept. 21 6 Czechoslo- Portugal 6 Mar. 13,1933 Sept. 28 7 vakia 3H Jan. 25,1933 Sept. 29 3 Rumania 6 Apr. 5,1933 Oct. 10 _ 2H Danzig 3 May 6,1933 South Africa. May 15,1933 Dec. 10 7~~ Denmark 3 June 1,1933 Spain 6 Oct. 26,1932 Feb. 18, 1932 5 Ecuador 4 Nov. 30,1932 Mar. 9 6 Estonia 5H Feb. 1,1932 Sweden 3 June 1,1933 Mar. 10 4 U.S.S.R 8 Mar. 22,1927 Mar. 17 VA Finland 6 Feb. 1,1933 Yugoslavia- July 20,1931 Mar. 21 6 Greece . . 9 Dec. 3,1932 7 Apr. 9 Hungary 4H Oct. 18,1932 Apr. 19 2^ India 3M Feb. 16, 1933 Apr. 21 3 Apr. 28- 5 May 2 5 Changes since May 1: Danzig—May 6, down from 4 to 3 percent; May 12 Denmark—June 1, down from 3}4 to 3 percent; Netherlands—May 11, up June 30 ,* from 2% to ZlA percent; Norway—May 24, down from 4 to V/% percent; Sept. 22. 4 South Africa—May 15, down from 4 to 3^ percent; Sweden—June 1, Jan. 9, 1933 4 down from ZVo to 3 percent. May 11 3H In effect June 1,1933. 2 2M 4 4 3H 2 MONEY RATES IN FOREIGN COUNTRIES Netherlands (Amster- England (London) Germany (Berlin) dam) Month B a a a c n n c c k e e e p s r t , 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 t a e u t n e t M 1 o m ne o y n t f h or Da m y o -t n o e - y day d P is r r c i a v o t a u e t n e t M 1 o m ne o y n t f h or 3 months 1932-April 2.19 2.07 1.91 5.12 6.31 6.17 1.02 May 1.44 1.10 1.29 4.87 5.96 5.91 .60 1.03 June 1.05 .85 .99 4.75 5.76 5.70 .39 1.00 July .92 .67 4.58 5.75 5.49 .49 1.00 August .74 .73 4.50 5.75 5.82 .37 1.00 September. .67 .55 .67 4.25 5.55 5.55 .37 1.00 October .82 .71 .71 3.87 5.00 4.94 .37 1.00 November. .89 .82 .73 3.87 5.00 4.80 .37 1.00 December— 1.02 1.04 .81 3.87 5.08 4.91 .37 1.00 1933—January-, _ .87 .76 .73 3.87 5.03 4.98 .37 1.00 February. .83 .78 .73 3.87 5.00 4.86 .37 1.00 M Ap a r r i c l h . .5 6 9 2 '. . 4 5 6 0 . . 6 6 4 1 B 3 3 . . 8 8 7 7 5 5 . . 0 2 0 5 4 5 . . 9 0 7 5 . . 6 6 4 6 1 1 . . 1 0 1 0 Sw la i n tz d er- (B B r e u lg s i s u e m ls) F (P ra a n ri c s e ) (M Ita il l a y n) Hungary S ( h S w o t e o lm d c e k ) n - Japan (Tokyo) Month d P is r r i c a v o t a e u t n e t d P is r r i c a v o te a u t n e t d P is r r i c a v o te a u t n e t d P is r r c i a v o te a u t n e t c c ia o P l m ri p m m a e e p r e - r Da m y- o t n o e -d y ay L m oa o to n n s t 3 h u s p Disc b o il u l n s ted ov m e C o rn a n l i e l g y ht 1932—April 1.50 3.26 1.66 6.00 4H-5 5 -7 6.20-6.57 5.48 May 1.50 3.21 1.50 5.52 4^-4% 6.20-6.57 4.56 June 1.50 3.16 1.22 5.50 4 -4% 4 - 6.02-6.57 4.56 July 1.50 3.17 .99 5.50 4 -4U 4 -H 6.02-6.39 4.20 August 1.50 3.12 1.02 5.50 4^-4% 4 -5H 5.84-6.21 4.02 September. 1.50 3.00 1.00 5.50 4 -4*4 5.66-6.21 3.47 October 1.60 3.00 1.01 5.00 5.66-6.02 3.28 November.. 1.50 3.00 1.00 5.00 -5 V* 5.66-5.84 2.92 December— 1.50 2.94 .91 5.00 5.66-5.84 2.74 1933—January- 1.50 2.88 1.12 4.42 5.48-5.84 3.10 February . 1.50 2.78 1.89 4.25 5.48-5.84 2.92 March 1.50 2.62 2.04 4.20 5,48-5.84 2.92 April 1.50 1.87 4.00 • Corrected. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

382 FEDERAL RESERVE BULLETIN JUNE 1933 FOREIGN EXCHANGE RATES [Monthly averages of daily quotations based on noon buying rates for cable transfers in New York. In cents per unit of foreign currency] Month A t r i g n e a n- tr A a u li s a - i Austria Belgium Brazil Bulgaria Canada Chile China Co b l i o a m- Cuba C sl z o e v c a h k o i - a m D a e r n k - 1932—May 58.3242 293.42 13.9645 14.0249 7.1294 .7202 88.4430 6.0000 21. 7116 95.2400 99.9299 2.9650 20.0654 June 58.5205 291.15 13.9600 13.9366 7.5008 .7200 86.7427 6.0202 21. 3125 95.2400 99.9217 2.9641 19.9248 July 58.5574 283.40 13.9813 13.8724 7.5960 .7230 87.0658 6.0250 20.6400 95.2400 99.9186 2.9589 19.2044 August 58.5695 277. 50 13.9696 13.8735 7.6221 .7209 87. 5513 6.0283 21.0031 95.2400 99.9094 2.9596 18.4993 September 58.5886 277.13 13.9635 13.8606 7.6171 .7203 90.2636 6.0414 21.0404 95.2400 99.9118 2.9594 17.9781 October 58.5835 271.15 13.9550 13.8940 7.6214 .7200 91. 2332 6.0250 20.8883 95.2400 99.9109 2.9606 17.6412 November 58.5837 261. 50 13.9477 13.8723 7.6302 .7200 87.3000 6.0276 20.5937 95.2400 99.9237 2.9619 17.0613 December 58.5851 261.77 13.9581 13.8460 7. 6327 .7200 86.5989 6.0274 19.4719 95.2400 99.9261 2.9613 17.0069 1933—January 58.5847 267.19 13.9715 13.8629 7.6352 .7195 87.4621 6.0275 19.7916 95.2400 99.9411 2.9614 16.9097 February. 58.5804 272.17 13.9867 13.9638 7.6348 .7200 83.5084 6.0278 20.1136 94.4191 99.9790 2.9632 15.2612 March » 58.2974 272. 73 14.0121 13.9803 7. 6330 .7210 83. 5205 6. 0281 20. 7250 86. 2100 100. 0162 2. 9743 15. 3180 April 60. 4864 284. 79 14. 0700 14. 5285 7.6348 .7223 84. 7233 6. 0300 22.1953 86. 2100 99. 9322 3.1155 15.9502 May 67. 9019 313. 07 14. 5582 16.2711 7.6354 .7825 87. 5930 6. 2846 24. 5193 86. 2100 99. 9196 3. 5075 17.5193 Month Egypt England l F a i n n d - France m G a e n r y - Greece H K o o n n g g Hungary India Italy Japan Mexico N la e n th d e s r- 1932—May 376.8328 367.5140 1.7171 3.9468 23.7947 .6641 23.4337 17.4384 27.3175 5.1491 31.9730 30.2540 40.5474 June 374.1009 364.6648 1.7019 3.9363 23.6878 .6387 23.3431 17. 4740 27.1647 5.1162 30.2856 26.8977 40.4411 July 364.0790 354.9564 1.5350 3.9207 23. 7176 .6399 22.8893 17.4612 26.6842 5.1009 27.4471 27.7321 40.2740 August 356.4018 347.5721 1.5114 3.9187 23.7838 .6321 23.2479 17.4507 26.1577 5.1144 24.4944 28.5682 40.2443 September. 355.9494 347.1062 1.4953 3.9179 23.7814 .6060 23.4293 17.4653 26.2192 5.1264 23. 6314 29.9159 40.1586 October 348.5176 339.6163 1.4823 3.9264 23.7692 .6014 22.9487 17. 4452 25.6800 5.1195 23.0628 31.1060 40.2217 November. 336.0492 327.5267 1.4441 3.9190 23.7536 .5743 22.4062 17.4356 24.7830 5.1124 20. 6218 32. 2205 40.1774 December.. 336.1120 327.8679 1.4239 3.9033 23.7869 .5418 21.3527 17. 4265 24.7923 5.1088 20. 7298 31.9923 40.1680 1933—January 344. 6451 336.1385 1.4577 3.9034 23.7703 .5392 21.7525 17.4260 25.4055 5.1177 20. 7393 30.1631 40.1797 February. 342.2073 1.4919 3.9228 23.8291 .5610 22.0710 17.4359 25.8336 5.1156 20. 7945 28.4212 40.2691 March K.. 343. 2800 1.5153 3. 9361 23.8519 .5673 22. 7442 17.4392 25. 7900 5.1372 21. 2631 28.3164 40. 3572 April 357.9313 1.5806 4.1019 24.3873 .5865 23. 7714 17.4812 26. 8721 5. 3662 22. 0867 27.0201 41.9490 May 393. 2381 1. 7467 4.5927 27. 3629 .6582 27.1586 18. 8766 29. 5729 23 9967 28. 8721 46.9507 Month Ze N al e a w nd *Norway Poland Po g r a t l u- m R a u n - ia Spain S S m t e e r t a t n l i t e t s s - Sweden Sw la i n tz d er- Turkey U A S n f o i r o i u c n t a h o 1 f Uruguay Y sl u av g i o a - 1932—May 335.63 18.4823 11.1810 3.3267 .5970 8.1169 42. 2400 18. 7238 19.5579 47.5060 479.72 47.5433 1.7743 June 333.03 18.0626 11.1839 3.3320 .5966 8.2451 41.9567 18.7049 19.5141 47.3550 479.89 47.2115 1.7436 July 324.16 17.6386 11.1885 3.2240 .5972 8.0518 40.9675 18.2190 19.4684 47.1604 478.31 47.5680 1.6717 August 317.42 17.4101 11.1771 3.1579 .5978 8.0608 40.1042 17.8485 19.4528 47.1011 477.50 47.4413 1.6903 September 316.99 17.4470 11.1800 3.1481 .5982 8.1044 40. 2475 17.8055 19.3007 47.1916 476.79 47.3900 1.5892 October 310.15 17.1752 11.1740 3.0872 .5978 8.1871 39.4372 17.5334 19.3041 47.2680 475.85 47.3466 1.4094 November. _. 299.11 16.7252 11.1769 3.0293 .5975 8.1730 38.0026 17.4314 19.2470 47.2167 477.58 47.3402 1.3506 December 299.42 16.8899 11.1825 3.0191 .5973 8.1506 38.0123 17.9108 19.2354 47.0127 »479.13 47.3397 1.3448 1933—January 292.13 17.2684 11.1872 3.0364 .5972 8.1777 38.9884 18.2982 19. 2836 47.0260 « 340.63 47.3366 1.3555 February 272.87 17. 5270 11.1940 3.1017 .5958 8. 2446 39. 5818 18. 2670 19.3707 47.1982 338. 90 47. 3363 1.3593 March* 273. 45 17. 5913 11.1834 3.1362 .5974 8.4431 39.6078 18.1884 19. 3716 339. 88 47. 3458 1.3714 April 285. 48 18.3161 11. 3755 3. 2133 .6107 8.8804 41. 2350 18.8108 20.1281 353. 74 47. 7646 1.4228 May 313.86 20.0164 13. 0873 3. 5781 .7025 9.9875 45.6611 20. 2413 22. 5368 388. 74 53.1875 1.6073 Monetary units and pars of exchange (in cents per unit of foreign currency): Par of Par of Par of Country Monetary unit ex- Country Monetary unit ex- Country Monetary unit exchange change change Argentina Gold peso 96.48 England Pound 486. 66 Poland Zloty 11.22 Australia Pound 486.66 Finland Markka 2.52 Portugal Escudo 4.42 Austria Schilling 14.07 France Franc 3.92 Rumania Leu .60 Belgium Belga 13.90 Germany Reichsmark 23.82 Spain Peseta 19.30 Brazil Milreis 11.96 Greece Drachma 1.30 Straits Settle- Singapore dollar... 845.88 Bulgaria Lev .72 Hong Kong Hong Kong dollar. 7 26.82 ments. Canada Dollar 100.00 Hungary Pengo 17.49 Sweden Krona 26.80 Chile Peso 12.17 India Rupee 46.50 Switzerland Franc 19.30 China Yuan 7 25.97 Italy Lira 5.26 Turkey Turkish pound 439.65 Colombia ». Peso 97.33 Japan Yen 49.85 Union of South Pound 486.66 Cuba d'o 100.00 Mexico Silver peso 49.85 Africa. Czechoslovakia-.. Koruna 2.96 Netherlands Florin 40.20 Uruguay Peso 103.42 Denmark Krone _ 26.80 New Zealand Pound 486.66 Yugoslavia Dinar 1.76 Egypt Egyptian pound._ 494.31 Norway Krone 26.80 1 Monthly averages for Australia, New Zealand, and South Africa from May through December 1932 are taken from the League of Nations Monthly Bulletin of Statistics. * No quotations from Mar. 6 through Mar. 11. 3 No quotations from Mar. 6 through Mar. 13. 4 Average quotations on Shanghai for 18 days of new yuan containing 23.4934 grams of pure silver. Average quotations for 7 days of old yuan containing 23.9025 grams of pure silver was 20.5383 cents. * Average based on quotations for Dec. 1-27. * Average based on quotations for Jan. 7-31. 7 Silver currencies—figures given for parity represent gold value of unit in May 1933, computed by multiplying silver content of unit by New York average price of silver for May 1933, which was $0.34384 per fine ounce. 8 Singapore dollar is legally equivalent to seven sixtieths of 1 English pound. Figure given for parity represents seven sixtieths of average quotation of pound in New York for May 1933. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1933 FEDERAL RESERVE BULLETIN 383 PRICE MOVEMENTS IN PRINCIPAL COUNTRIES SECURITY PRICES [Index numbers except as otherwise specified] Bonds Common stocks (1926 average-100)« Month ( U a S p v n t r e a i i c r t t e a e e s g ) d e ( 1 D E 9 e n 2 c 1 g e = l m a 1 n b 0 d 0 er ) ( a 1 g 9 F 1 e r = 3 a n 1 a 0 c v e 0 e ) r- G ( p a e r v r i e c m r e a a ) g n » e y U S n ta i t t e e s d England France Germany Number of issues 60 87 36 421 278 300 329 1931—April 111.3 99.0 84.8 109.2 85.1 148.5 84.8 May 99.7 110.8 98.4 84.2 98.0 76.8 138.2 76.1 June 99.4 111.1 82.4 95.1 77.8 141.2 69.6 July. 99.4 111.2 <81.4 98.2 79.2 132.6 *70.S August 98.5 107.2 99.5 (3) 95.5 73.8 130.5 '') September. 95.6 103.5 97.7 81.7 67.2 115.5 October 89.4 104.2 94.8 8 <70.4 69.7 75.6 106.9 « 52.3 November. 89.0 104.8 94.4 71.7 74.7 104.3 December.. 81.6 102.2 90.8 57.7 68.1 94.8 1932—January 81.0 104.7 91.5 58.0 69.7 107.3 February ... 80.3 106.5 90.3 8 56.4 126.2 March 80.8 111.6 90.5 56.8 117.6 April 79.4 110.6 89.0 '63.0 43.9 63.5 107.3 « 45. 6 May 75.2 111.4 85.9 64.4 39.8 61.6 94.4 46.4 June 72.2 111.0 85.2 60.4 34.0 59.3 97.4 45.6 July. 74.2 115.6 87.4 62.2 35.9 63.5 100.4 45.8 August 83.2 116.1 88.6 63.2 53.3 69.5 103.4 47.9 September. 85.8 118.4 89.5 67.4 58.2 72.7 104.3 54.1 October 84.1 120.3 89.1 70.1 49.9 72.4 97.4 52.5 November- 81.9 115.9 88.9 72.9 47.5 72.7 100.0 53.4 December . 81.2 116.1 87.8 76.3 47.4 72.0 104.3 56.7 1933—January 84.1 116.9 86.4 81.4 49.1 72.4 101.3 59.3 February „ 82.5 118.4 85.3 79.9 44.9 72.2 97.9 59.4 March 76.8 118.4 81.9 83.6 43.2 72.3 92.7 64.5 April _. 75.4 120.2 81.5 85.8 47.5 72.4 94.0 66.8 * Stock price series for England, France, and Germany have been converted from original bases to a 1926 base. * New series compiled by the Statistisches Relchsamt; weighted average of the prices of one hundred sixty-nine 6 percent bonds. * Figures not available because of closing of the exchange. * Based on data for part of month, no quotations being available for remainder of month. Back figures.—See BULLETIN for February 1932, p. 121, and sources there cited. WHOLESALE PRICES—ALL COMMODITIES Month (1 U 9 S n t 2 i a 6 t t = e e 1 d s 00) (1 C 9 a 2 n 6 a = d 10 a 0) ( E 1 n 91 g 3 l = a 1 n 0 d 0) (1 F 9 r 1 a 3 n = c 1 e 00) ( G 1 e 9 r 13 m = a 1 n 0 y 0) (19 I 1 t 3 a = l 1 y 00) 1 ( 9 O J 0 c a 0 t p = o a 1 b n 0 e 0 r ) , (1 N 9 l e 1 a t 3 n h = d e 1 s r 0 - 0) 1931—April 75 74 106 540 114 337 158 102 May 73 73 104 520 113 332 154 102 June 72 72 103 518 112 327 151 100 July. 72 71 102 500 112 324 153 97 August 72 71 100 488 110 322 152 94 September. 71 70 99 473 109 319 150 91 October-.. 70 70 104 457 107 322 147 89 November. 70 71 106 447 107 320 147 89 December - 69 70 106 442 104 319 151 85 1932—January... 67 69 106 439 100 317 160 84 February.. 66 69 105 446 100 314 161 83 March 66 69 105 444 100 315 159 82 April 66 68 102 439 98 311 154 80 May 64 68 101 438 97 305 150 ,L. i 79 June 64 67 98 425 96 297 146 " 78 July 65 67 98 430 96 296 148 76 August 65 67 100 415 95 296 156 75 September. 65 67 102 413 95 300 167 76 October-.. 64 65 101 412 94 299 169 77 November. 64 65 101 413 94 298 178 77 December. 63 64 101 413 92 296 185 76 1933—January. ~ 61 64 100 411 91 292 185 75 February.. 60 64 99 404 91 286 180 74 March 60 64 98 ••390 91 281 177 72 April 60 65 97 387 91 279 176 71 r Revised. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

384 FEDERAL RESERVE BULLETIN JUNE 1933 PRICE MOVEMENTS IN PRINCIPAL COUNTRIES—Continued WHOLESALE PRICES—GROUPS OF COMMODITIES [Groups are those included in indexes shown in preceding table] United States (1926-100) England (1913-100) France (1913-100) Germany (1913-100) Indus- Month 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 p I r n o tr d d i u a u l s c - ts a p n r F o d a d r f u m o c o t d s p I r n o tr d d i u a u l s c - ts p A r t g o u r d r i u c a u c l t l s - P s r io o n v s i- a t f r n i i n d a i l s s h e r e a m d w i- tr I i i n s a d h l u e f d s in - products products 1931—April 113 102 592 495 108 105 138 May 113 100 566 480 109 103 137 June 113 98 571 472 107 103 137 July 110 98 541 465 105 103 136 August 108 95 528 452 103 102 136 September. 108 95 508 443 101 100 135 October 113 100 489 429 99 99 133 November. 115 102 482 416 99 99 132 December.. 113 102 491 400 95 97 130 1932—January 114 101 496 390 92 92 125 February 114 101 511 389 95 91 122 March 116 99 510 388 97 90 121 April 115 96 506 381 95 120 May 114 94 611 374 93 119 June 112 91 490 369 92 118 July 108 92 498 370 93 117 August 107 453 382 91 116 September . 107 445 384 115 October 106 450 379 115 November.. 107 458 373 114 December.. 108 456 375 114 1933—January 107 455 373 81 113 February. 105 443 370 112 March.... 102 '417 '368 112 April 101 407 369 111 RETAIL FOOD PRICES COST OF LIVING United England France Germany 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) i Month Month 1932 1933 1932 1933 1932 1933 1932 1933 1932 1933 1932 1933 1932 1933 1932 1933 January 109 131 123 114 102 116 107 January 147 142 125 117 February 105 131 122 115 103 114 107 February. 147 141 122 117 March 105 129 119 115 100 114 106 March.... 146 139 108 106 122 117 April 104 126 115 115 99 113 106 April. 144 137 122 117 May 101 125 114 113 May.. 143 121 June 100 123 111 113 June 136 142 109 121 July 101 125 108 114 July 143 122 August 101 123 104 112 August 141 120 September 100 123 102 111 September.. 141 "165" 120 October 100 125 102 110 October 143 119 November 99 125 104 110 November.. 143 119 December 99 125 103 109 December. _ 132 143 "lO5" 118 1 Average of October 1913, January, April, and July 1914=100. r Revised. SOURCE: 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; England—MINISTRY OF LABOUR; Qermany—Statistiches Reichsamt; .France—For retail food prices, Statistique GSnerale, and for cost of living, Commission d'fitudes relatives au cout de la vie a Paris. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1933 FEDERAL RESERVE BULLETIN 385 LAW DEPARTMENT Banking Act of 1933 the orders of the Federal Reserve Board, extend to There is published below the text of the each member bank such discounts, advancements, and accommodations as may be safely and reasonably Banking Act of 1933, which was signed by the made with due regard for the claims and demands of President on June 16, 1933: other member banks, the maintenance of sound credit conditions, and the accommodation of commerce, [PUBLIC—No. 66—73D CONGRESS] industry, and agriculture. The Federal Reserve Board may prescribe regulations further defining within [H. R. 5661] the limitations of this Act the conditions under which AN ACT discounts, advancements, and the accommodations may be extended to member banks. Each Federal To provide for the safer and more effective use of the assets of banks, to reserve bank shall keep itself informed of the general regulate interbank control, to prevent the undue diversion of funds into speculative operations, and for other purposes. character and amount of the loans and investments of its member banks with a view to ascertaining whether Be it enacted by the Senate and House of Representa-undue use is being made of bank credit for the speculatives of the United States of America in Congress tive carrying of or trading in securities, real estate, or assembled, That the short title of this Act shall be the commodities, or for any other purpose inconsistent "Banking Act of 1933." with the maintenance of sound credit conditions; and, SEC. 2. As used in this Act and in any provision of in determining whether to grant or refuse advances, law amended by this Act— rediscounts or other credit accommodations, the Federal (a) The terms "banks", "national bank", "national reserve bank shall give consideration to such informabanking association", "member bank", "board", tion. The chairman of the Federal reserve bank shall "district", and "reserve bank" shall have the mean- report to the Federal Reserve Board any such undue ings assigned to them in section 1 of the Federal Re- use of bank credit by any member bank, together with serve Act, as amended. his recommendation. Whenever, in the judgment of (b) Except where otherwise specifically provided, the Federal Reserve Board, any member bank is makthe term "affiliate" shall include any corporation, ing such undue use of bank credit, the Board may, in business trust, association, or other similar organiza- its discretion, after reasonable notice and an opportion— tunity for a hearing, suspend such bank from the use (1) Of which a member bank, directly or indirectly, of the credit facilities of the Federal Reserve System owns or controls either a majority of the voting shares and may terminate such suspension or may renew it or more than 50 per centum of the number of shares from time to time." voted for the election of its directors, trustees, or other (b) The paragraph of section 4 of the Federal Repersons exercising similar functions at the preceding serve Act, as amended (U.S.C., title 12, sec. 304), election, or controls in any manner the election of a which commences with the words "The Federal majority of its directors, trustees, or other persons Reserve Board shall classify" is amended by inserting exercising similar functions; or before the period at the end thereof a colon and the (2) Of which control is hejd, directly or indirectly, following: "Provided, That whenever any two or more through stock ownership or in any other manner, by member banks within the same Federal reserve the shareholders of a member bank who own or con- district are affiliated with the same holding company trol either a majority of the shares of such bank or affiliate, participation by such member banks in any more than 50 per centum of the number of shares voted such nomination or election shall be confined to one of for the election of directors of such bank at the pre- such banks, which may be designated for the purpose ceding election, or by trustees for the benefit of the by such holding company affiliate." shareholders of any such bankj or SEC. 4. The first paragraph of section 7 of the (3) Of which a majority of its directors, trustees, or Federal Reserve Act, as amended (U.S.C., title 12, sec. other persons exercising similar functions are directors 289), is amended, effective July 1, 1932, to read as of any one member bank. follows: (c) The term "holding company affiliate" shall in- "After all necessary expenses of a Federal reserve clude any corporation, business trust, association, or bank shall have been paid or provided for, the stockother similar organization— holders shall be entitled to receive an annual dividend (1) Which owns or controls, directly or indirectly, of 6 per centum on the paid-in capital stock, which either a majority of the shares of capital stock of a dividend shall be cumulative. After the aforesaid member bank or more than 50 per centum of the num- dividend claims have been fully met, the net earnings ber of shares voted for the election of directors of any shall be paid into the surplus fund of the Federal one bank at the preceding election, or controls in any reserve bank." manner the election of a majority of the directors of SEC. 5. (a) The first paragraph of section 9 of the any one bank; or Federal Reserve Act, as amended (U.S.C., title 12, sec. (2) For the benefit of whose shareholders or mem- 321; Supp. VI, title 12, sec. 321), is amended by inbers all or substantially all the capital stock of a mem- serting immediately after the words "United States" ber bank is held by trustees. a comma and the following: "including Morris Plan SEC. 3. (a) The fourth paragraph after paragraph banks and other incorporated banking institutions "Eighth" of section 4 of the Federal Reserve Act, as engaged in similar business." amended (U.S.C., title 12, sec. 301), is amended to (b) The second paragraph of section 9 of the Federal read as follows: Reserve Act, as amended, is amended by adding at the "Said board of directors shall administer the affairs end thereof the following: "Provided, however, That of said bank fairly and impartially and without dis- nothing herein contained shall prevent any State crimination in favor of or against any member bank member bank from establishing and operating branches or banks and may, subject to the provisions of law and in the United States or any dependency or insular Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

386 FEDERAL RESERVE BULLETIN JUNE 1933 possession thereof or in any foreign country, on the same than member banks and furnish to the Federal reserve terms and conditions and subject to the same limita- bank of its district and to the Federal Reserve Board tions and restrictions as are applicable to the establish- not less than three reports during each year. Such ment of branches by national banks." reports shall be in such form as the Federal Reserve (c) Section 9 of the Federal Reserve Act, as amended Board may prescribe, shall be verified by the oath or (U.S.C., title 12, sees. 321-331; Supp. VI, title 12, affirmation of the president or such other officer as sees. 321-332), is further amended by adding at the may be designated by the board of directors of such end thereof the following new paragraphs: affiliate to verify such reports, and shall disclose the "Any mutual savings bank having no capital stock information hereinafter provided for as of dates iden- (including any other banking institution the capital tical with those fixed by the Federal Reserve Board for of which consists of weekly or other time deposits which reports of the condition of the affiliated member bank. are segregated from all other deposits and are regarded Each such report of an affiliate shall be transmitted as as capital stock for the purposes of taxation and the herein provided at the same time as the corresponding declaration of dividends), but having surplus and un- report of the affiliated member bank, except that the divided profits not less than the amount of capital Federal Reserve Board may, in its discretion, extend required for the organization of a national bank in such time for good cause shown. Each such report the same place, may apply for and be admitted to shall contain such information as in the judgment of membership in the Federal Reserve System in the the Federal Reserve Board shall be necessary to dissame manner and subject to the same provisions of close fully the relations between such affiliate and such law as State banks and trust companies, except that bank and to enable the Board to inform itself as to the any such savings bank shall subscribe for capital stock effect of such relations upon the affairs of such bank. of the Federal reserve bank in an amount equal to The reports of such affiliates shall be published by the six-tenths of 1 per centum of its total deposit liabilities bank under the same conditions as govern its own as shown by the most recent report of examination condition reports. of such savings bank preceding its admission to mem- "Any such affiliated member bank may be required bership. Thereafter such subscription shall be ad- to obtain from any such affiliate such additional reports justed semiannually on the same percentage basis in as in the opinion of its Federal reserve bank or the accordance with rules and regulations prescribed by Federal Reserve Board may be necessary in order to the Federal Reserve Board. If any such mutual obtain a full and complete knowledge of the condition sayings bank applying for membership is not per- of the affiliated member bank. Such additional reports mitted by the laws under which it was organized to shall be transmitted to the Federal reserve bank and purchase stock in a Federal reserve bank, it shall, the Federal Reserve Board and shall be in such form upon admission to the system, deposit with the Federal as the Federal Reserve Board may prescribe. reserve bank an amount equal to the amount which "Any such affiliated member bank which fails to it would have been required to pay in on account of a obtain from any of its affiliates and furnish any report subscription to capital stock. Thereafter such deposit provided for by the two preceding paragraphs of this shall be adjusted semiannually in the same manner as section shall be subject to a penalty of $100 for each subscriptions for stock. Such deposit shall be subject day during which such failure continues, which, by to the same conditions with respect to repayment as direction of the Federal Reserve Board, may be colamounts paid upon subscriptions to capital stock by lected, by suit or otherwise, by the Federal reserve other member banks and the Federal reserve bank bank of the district in which such member bank is shall pay interest thereon at the same rate as dividends located. For the purposes of this paragraph and the are actually paid on outstanding shares of stock of two preceding paragraphs of this section, the term such Federal reserve bank. If the laws under which 'affiliate' shall include holding company affiliates as any such savings bank was organized be amended so as well as other affiliates. to authorize mutual savings banks to subscribe for "State member banks shall be subject to the same Federal reserve bank stock, such savings bank shall limitations and conditions with respect to the purchasthereupon subscribe for the appropriate amount of ing, selling, underwriting, and holding of investment stock in the Federal reserve bank, and the deposit securities and stock as are applicable in the case of hereinbefore provided for in lieu of payment upon national banks under paragraph ' Seventh' of section capital stock shall be applied upon such subscription. 5136 of the Revised Statutes, as amended. If the laws under which any such savings bank was "After one year from the date of the enactment of organized be not amended at the next session of the the Banking Act of 1933, no certificate representing legislature following the admission of such savings the stock of any State member bank shall represent the bank to membership so as to authorize mutual savings stock of any other corporation, except a member bank banks to purchase Federal reserve bank stock, or if or a corporation existing on the date this paragraph such laws be so amended and such bank fail within six takes effect engaged solely in holding the bank premises months thereafter to purchase such stock, all of its of such State member bank, nor shall the ownership, rights and privileges as a member bank shall be for- sale, or transfer of any certificate representing the stock feited and its membership in the Federal Reserve of any such bank be conditioned in any manner what- System shall be terminated in the manner prescribed soever upon the ownership, sale, or transfer of a certifielsewhere in this section with respect to State member cate representing the stock of any other corporation, banks and trust companies. Each such mutual sav- except a member bank. ings bank shall comply with all the provisions of law "Each State member bank affiliated with a holding applicable to State member banks and trust com- company affiliate shall obtain from such holding companies, with the regulations of the Federal Reserve pany affiliate, within such time as the Federal Reserve Board and with the conditions of membership pre- Board shall prescribe, an agreement that such holding scribed for such savings bank at the time of admission company affiliate shall be subject to the same conditions to membership, except as otherwise hereinbefore pro- and limitations as are applicable under section 5144 vided with respect to capital stock. of the Revised Statutes, as amended, in the case of "Each bank admitted to membership under this holding company affiliates of national banks. A copy section shall obtain from each of its affiliates other of each such agreement shall be filed with the Federal Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN 387 JUNE 1933 Reserve Board. Upon the failure of a State member "The principal offices of the Board shall be in the bank affiliated with a holding company affiliate to District of Columbia. At meetings of the Board the obtain such an agreement within the time so prescribed, Secretary of the Treasury shall preside as chairman, the Federal Reserve Board shall require such bank to and, in his absence, the governor shall preside. In surrender its stock in the Federal reserve bank and to the absence of both the Secretary of the Treasury and forfeit all rights and privileges of membership in the the governor the vice governor shall preside. In the Federal Reserve System as provided in this section. absence of the Secretary of the Treasury, the governor, Whenever the Federal Reserve Board shall have re- and the vice governor the Board shall elect a member voked the voting permit of any such holding company to act as chairman pro tempore. The Board shall affiliate, the Federal Reserve Board may, in its dis- determine and prescribe the manner in which its cretion, require any or all State member banks affili- obligations shall be incurred and its disbursements ated with such holding company affiliate to surrender and expenses allowed and paid, and may leave on detheir stock in the Federal reserve bank and to forfeit posit in the Federal reserve banks the proceeds of all rights and privileges of membership in the Federal assessments levied upon them to defray its estimated Reserve System as provided in this section. expenses and the salaries of its members and employees, "In connection with examinations of State member whose employment, compensation, leave, and expenses banks, examiners selected or approved by the Federal shall be governed solely by the provisions of this Act, Reserve Board shall make such examinations of the specific amendments thereof, and rules and regulations affairs of all affiliates of such banks as shall be neces- of the Board not inconsistent therewith; and funds sary to disclose fully the relations between such banks derived from such assessments shall not be construed and their affiliates and the effect of such relations to be Government funds or appropriated moneys. No upon the affairs of such banks. The expense of exam- member of the Federal Reserve Board shall be an officer ination of affiliates of any State member bank may, or director of any bank, banking institution, trust comin the discretion of the Federal Reserve Board, be pany, or Federal reserve bank or hold stock in any bank, assessed against such bank and, when so assessed, banking institution, or trust company; and before entershall be paid by such bank. In the event of the refusal ing upon his duties as a member of the Federal Reserve to give any information requested in the course of the Board he shall certify under oath that he has complied examination of any such affiliate, or in the event of with this requirement, and such certification shall be the refusal to permit such examination, or in the event filed with the secretary of the Board. Whenever a of the refusal to pay any expense so assessed, the vacancy shall occur, other than by expiration of term, Federal Reserve Board may, in its discretion, require among the six members of the Federal Reserve Board any or all State member banks affiliated with such appointed by the President as above provided, a sucaffiliate to surrender their stock in the Federal reserve cessor shall be appointed by the President, by and with bank and to forfeit all rights and privileges of member- the advice and consent of the Senate, to fill such ship in the Federal Reserve System, as provided in vacancy, and when appointed he shall hold office for this section/' the unexpired term of his predecessor." SEC. 6. (a) The second paragraph of section 10 of SEC. 7. Paragraph (m) of section 11 of the Federal the Federal Reserve Act, as amended (U.S.C., title 12, Reserve Act, as amended (U.S.C., title 12, sec. 248), sec. 242), is amended to read as follows: is amended to read as follows: "The Secretary of the Treasury and the Comptroller "(m) Upon the affirmative vote of not less than six of the Currency shall be ineligible during the time they of its members the Federal Reserve Board shall have are in office and for two years thereafter to hold any power to fix from time to time for each Federal reserve office, position, or employment in any member bank. district the percentage of individual bank capital and The appointive members of the Federal Reserve Board surplus which may be represented by loans secured by shall be ineligible during the time they are in office and stock or bond collateral made by member banks within for two years thereafter to hold any office, position, or such district, but no such loan shall be made by any employment in any member bank, except that this such bank to any person in an amount in excess of 10 restriction shall not apply to a member who has per centum of the unimpaired capital and surplus of served the full term for which he was appointed. Upon such bank. Any percentage so fixed by the Federal the expiration of the term of any appointive member Reserve Board shall be subject to change from time to of the Federal Reserve Board in office when this para- time upon ten days' notice, and it shall be the duty of graph as amended takes effect, the President shall fix the Board to establish such percentages with a view the term of the successor to such member at not to to preventing the undue use of bank loans for the specuexceed twelve years, as designated by the President lative carrying of securities. The Federal Reserve at the time of nomination, but in such manner as to Board shall have power to direct any member bank to provide for the expiration of the term of not more refrain from further increase of its loans secured by than one appointive member in any two-year period, stock or bond collateral for any period up to one year and thereafter each appointive member shall hold under penalty of suspension of all rediscount privileges office for a term of twelve years from the expiration at Federal reserve banks." of the term of his predecessor. Of the six persons thus SEC. 8. The Federal Reserve Act, as amended, is appointed, one shall be designated by the President amended by inserting between sections 12 and 13 as governor and one as vice governor of the Federal (U.S.C., title 12, sees. 261, 262, and 342), thereof the Reserve Board. The governor of the Federal Reserve following new sections: Board, subject to its supervision, shall be its active "SEC. 12A. (a) There is hereby created a Federal executive officer. Each member of the Federal Open Market Committee (hereinafter referred to as Reserve Board shall within fifteen days after notice the l committee'), which shall consist of as many memof appointment make and subscribe to the oath of bers as there are Federal reserve districts. Each Fedoffice." eral reserve bank by its board of directors shall annually (b) The fourth paragraph of section 10 of the Federalselect one member of said committee. The meetings Reserve Act, as amended (U.S.C., title 12, sec. 244), of said committee shall be held at Washington, District is amended to read as follows: of Columbia, at least four times each year, upon the call Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

388 FEDERAL RESERVE BULLETIN JUNE 1933 of the governor of the Federal Reserve Board or at the tion to the Secretary of the Treasury and shall be request of any three members of the committee, and> evidence of the stock ownership of the United States. in the discretion of the Board, may be attended by the "(d) The capital stock of the Corporation shall be members of the Board. divided into shares of $100 each. Certificates of stock "(b) No Federal reserve bank shall engage in open- of the Corporation shall be of two classes—class A and market operations under section 14 of this Act except class B. Class A stock shall be held by member and in accordance with regulations adopted by the Federal nonmember banks as hereinafter provided and they Reserve Board. The Board shall consider, adopt, and shall be entitled to payment of dividends out of net transmit to the committee and to the several Federal earnings at the rate of 6 per centum per annum on the reserve banks regulations relating to the open-market capital stock paid in by them, which dividends shall be transactions of such banks and the relations of the Fed- cumulative, or to the extent of 30 per centum of such eral Reserve System with foreign central or other net earnings in any one year, whichever amount shall foreign banks. be the greater, but such stock shall have no vote at " (c) The time, character, and volume of all pur- meetings of stockholders. Class B stock shall be held chases and sales of paper described in section 14 of this by Federal reserve banks only and shall not be entitled Act as eligible for open-market operations shall be to the payment of dividends. Every Federal reserve governed with a view to accommodating commerce and bank shall subscribe to shares of class B stock in the business and with regard to their bearing upon the Corporation to an amount equal to one half of the surgeneral credit situation of the country. plus of such bank on January 1, 1933, and its subscrip- " (d) If any Federal reserve bank shall decide not to tions shall be accompanied by a certified check payable participate in open-market operations recommended to the Corporation in an amount equal to one half of and approved as provided in paragraph (b) hereof, it such subscription. The remainder of such subscripshall file with the chairman of the committee within tion shall be subject to call from time to time by the thirty days a notice of its decision, and transmit a copy board of directors upon ninety days' notice. thereof to the Federal Reserve Board. " (e) Every bank which is or which becomes a mem- "SEC. 12B. (a) There is hereby created a Federal ber of the Federal Reserve System on or before July 1, Deposit Insurance Corporation (hereinafter referred to 1934, shall take all steps necessary to enable it to beas the ' Corporation '), whose duty it shall be to pur- come a class A stockholder of the Corporation on or chase, hold, and liquidate, as hereinafter provided, the before July 1, 1934; and thereafter no State bank or assets of national banks which have been closed by trust company or mutual savings bank shall be adaction of the Comptroller of the Currency, or by vote mitted to membership in the Federal Reserve System of their directors, and the assets of State member banks until it becomes a class A stockholder of the Corporawhich have been closed by action of the appropriate tion, no national bank in the continental United States State authorities, or by vote of their directors; and to shall be granted a certificate by the Comptroller of the insure, as hereinafter provided, the deposits of all banks Currency authorizing it to commence the business of which are entitled to the benefits of insurance under banking until it becomes a member of the Federal this section. Reserve System and a class A stockholder of the Cor- " (b) The management of the Corporation shall be poration, and no national bank in the continental vested in a board of directors consisting of three mem- United States for which a receiver or conservator has bers, one of whom shall be the Comptroller of the been appointed shall be permitted to resume the trans- Currency, and two of whom shall be citizens of the action of its banking business until it becomes a class A United States to be appointed by the President, by and stockholder of the Corporation. Every member bank with the advice and consent of the Senate. One of shall apply to the Corporation for class A stock of the the appointive members shall be the chairman of the Corporation in an amount equal to one half of 1 per board of directors of the Corporation and not more than centum of its total deposit liabilities as computed in two of the members of such board of directors shall be accordance with regulations prescribed by the Federal members of the same political party. Each such Reserve Board; except that in the case of a member appointive member shall hold office for a term of six bank organized after the date this section takes effect, years and shall receive compensation at the rate of the amount of such class A stock applied for by such $10,000 per annum, payable monthly out of the funds member bank during the first twelve months after its of the Corporation, but the Comptroller of the Cur- organization shall equal 5 per centum of its paid-up rency shall not receive additional compensation for his capital and surplus, and beginning after the expiration services as such member. of such twelve months' period the amount of such class "(c) There is hereby authorized to be appropriated, A stock of such member bank shall be adjusted anout of any money in the Treasury not otherwise appro- nually in the same manner as in the case of other priated, the sum of $150,000,000, which shall be avail- member banks. Upon receipt of such application the able for payment by the Secretary of the Treasury for Corporation shall request the Federal Reserve Board, capital stock of the Corporation in an equal amount, in the case of a State member bank, or the Comptroller which shall be subscribed for by him on behalf of the of the Currency, in the case of a national bank, to United States. Payments upon such subscription shall certify upon the basis of a thorough examination of be subject to call in whole or in part by the board of such bank whether or not the assets of the applying directors of the Corporation. Such stock shall be in bank are adequate to enable it to meet all of its liabiliaddition to the amount of capital stock required to be ties to depositors and other creditors as shown by the subscribed for by Federal reserve banks and member books of the bank; and the Federal Reserve Board or and nonmember banks as hereinafter provided, and the the Comptroller of the Currency shall make such United States shall be entitled to the payment of divi- certification as soon as practicable. If such certificadends on such stock to the same extent as member and tion be in the affirmative, the Corporation shall grant nonmember banks are entitled to such payment on the such application and the applying bank shall pay one class A stock of the Corporation held by them. Re- half of its subscription in full and shall thereupon ceipts for payments by the United States for or on become a class A stockholder of the Corporation: account of such stock shall be issued by the Corpora- Provided, That no member bank shall be required to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1933 FEDERAL RESERVE BULLETIN 389 make such payment or become a class A stockholder after provided for in lieu of payment upon class A stock of the Corporation before July 1, 1934. The remainder shall be applied upon such subscription. If the law of such subscription shall be subject to call from time under which such State bank was organized be not to time by the board of directors of the Corporation. amended at the next session of the State legislature If such certification be in the negative, the Corporation following the admission of such State bank to the beneshall deny such application. If any national bank fits of this section so as to authorize State banks to shall not have become a class A stockholder of the purchase such class A stock, or, if the law be so amended Corporation on or before July 1, 1934, the Comptroller and such State bank shall fail within six months thereof the Currency shall appoint a receiver or conservator after to purchase such class A stock, the deposit pretherefor in accordance with the provisions of existing viously made with the Corporation shall be returned to law. Except as provided in subsection (g) of this such State bank and it shall no longer be entitled to the section, if any State member bank shall not have benefits of this section, unless it shall have been closed become a class A stockholder of the Corporation on or in the meantime on account of inability to meet the before July 1, 1934, the Federal Reserve Board shall demands of its depositors. terminate its membership in the Federal Reserve "(h) The amount of the outstanding class A stock System in accordance with the provisions of section 9 of the Corporation held by member banks shall be anof this Act. nually adjusted as hereinafter provided as of the last "(f) Any State bank or trust company or mutual preceding call date as member banks increase their savings bank which applies for membership in the time and demand deposits or as additional banks be- Federal Reserve System or for conversion into a na- come members or subscribe to the stock of the Corpotional banking association on or after July 1, 1936, ration, and such stock may be decreased in amount as may, with the consent of the Corporation, obtain the member banks reduce their time and demand deposits benefits of this section, pending action on such appli- or cease to be members. Shares of the capital stock cation, by subscribing and paying for the same amount of the Corporation owned by member banks shall not of stock of the Coporation as it would be required to be transferred or hypothecated. When a member subscribe and pay for upon becoming a member bank. bank increases its time and demand deposits it shall, Thereupon the provisions of this section applicable to at the beginning of each calendar year, subscribe for member banks shall be applicable to such State bank an additional amount of capital stock of the Corporaor trust company or mutual savings bank to the same tion equal to one half of 1 per centum of such increase extent as if it were already a member bank: Provided, in deposits. One half of the amount of such additional That if the application of such State bank or trust com- stock shall be paid for at the time of the subscription pany or mutual savings bank for membership in the therefor, and the balance shall be subject to call by the Federal Reserve System or for conversion into a na- board of directors of the Corporation. A bank ortional banking association be approved and it shall not ganized on or before the date this section takes effect complete its membership in the Federal Reserve Sys- and admitted to membership in the Federal Reserve tem or its conversion into a national banking associa- System at any time after the organization of the Cortion within a reasonable time, or if such application poration shall be required to subscribe for an amount shall be disapproved, then the amount paid by such of class A capital stock equal to one half of 1 per centum State bank or trust company or mutual savings bank of the time and demand deposits of the applicant on account of its subscription to the capital stock of bank as of the date of such admission, paying therefor the Corporation shall be repaid to it and it shall no its par value plus one half of 1 per centum a month longer be subject to the provisions or entitled to the from the period of the last dividend on the class A privileges of this section. stock of the Corporation. When a member bank reduces its time and demand deposits it shall surrender, "(g) If any State bank or trust company or mutual not later than the 1st day of January thereafter, a savings bank (referred to in this subsection as * State proportionate amount of its holdings in the capital bank') which is or which becomes a member of the stock of the Corporation, and when a member bank Federal Reserve System is not permitted by the laws voluntarily liquidates it shall surrender all its holdings under which it was organized to purchase stock in the of the capital stock of the Corporation and be released Corporation, it shall apply to the Corporation for from its stock subscription not previously called. The admission to the benefits of this section and, if such shares so surrendered shall be canceled and the memapplication be granted after appropriate certification ber bank shall receive in payment therefor, under in accordance with this section, it shall deposit with the regulations to be prescribed by the Corporation, a sum Corporation an amount equal to the amount which it equal to its cash-paid subscriptions on the shares surwould have been required to pay in on account of a rendered and its proportionate share of dividends not subscription to capital stock of the Corporation. to exceed one half of 1 per centum a month, from the Thereafter such deposit shall be adjusted in the same period of the last dividend on such stock, less any manner as subscriptions for stock by class A stockholdliability of such member bank to the Corporation. ers. Such deposit shall be subject to the same conditions with respect to repayment as amounts paid on "(i) If any member or nonmember bank shall be subscriptions to class A stock by other member banks declared insolvent, or shall cease to be a member bank and the Corporation shall pay interest thereon at the (or in the case of a nonmember bank, shall cease to same rate as dividends are actually paid on outstanding be entitled to the benefits of insurance under this secshares of class A stock. As long as such deposit is tion), the stock held by it in the Corporation shall be maintained with the Corporation, such State bank shall, canceled, without impairment of the liability of such for the purposes of this section, be deemed to be a bank, and all cash-paid subscriptions on such stock, class A stockholder of the Corporation. If the laws with its proportionate share of dividends not to exceed under which such State bank was organized be amended one half of 1 per centum per month from the period of so as to authorize State banks to subscribe for class A last dividend on such stock shall be first applied to all stock of the Corporation, such State bank shall within debts of the insolvent bank or the receiver thereof to six months thereafter subscribe for an appropriate the Corporation, and the balance, if any, shall be paid amount of such class A stock and the deposit herein- to the receiver of the insolvent bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

390 FEDERAL RESERVE BULLETIN JUNE 1933 " (j) Upon the date of enactment of the Banking Act $50,000; and 50 per centum of the amount, if any, by of 1933, the Corporation shall become a body corporate which such net amount exceeds $50,000: Provided, and as such shall have power— That, in determining the amount due to such owner for " First. To adopt and use a corporate seal. the purpose of fixing such percentage, there shall be " Second. To have succession until dissolved by an added together all net amounts due to such owner in the Act of Congress. same capacity or the same right, on account of deposits, " Third. To make contracts. regardless of whether such deposits be maintained in his "Fourth. To sue and be sued, complain and defend, name or in the names of others for his benefit. For the in any court of law or equity, State or Federal. purposes of this subsection, the term 'insured deposit " Fifth. To appoint by its board of directors such liabilities' shall mean the aggregate amount of all such officers and employees as are not otherwise provided insured deposit liabilities of such closed bank. The for in this section, to define their duties, fix their com- Corporation shall determine as expeditiously as possible pensation, require bonds of them and fix the penalty the net amounts due to depositors of the closed bank and thereof, and to dismiss at pleasure such officers or em- shall make available to the new bank an amount equal ployees. Nothing in this or any other Act shall be to the insured deposit liabilities of such closed bank, construed to prevent the appointment and compensa- whereupon such new bank shall assume the insured tion as an officer or employee of the Corporation of any deposit liability of such closed bank to each of its officer or employee of the United States in any board, depositors, and the Corporation shall be subrogated to commission, independent establishment, or executive all rights against the closed bank of the owners of such department thereof. deposits and shall be entitled to receive the same divi- " Sixth. To prescribe by its board of directors, by- dends from the proceeds of the assets of such closed laws not inconsistent with law, regulating the manner bank as would have been payable to each such depositor in which its general business may be conducted, and the until such dividends shall equal the insured deposit privileges granted to it by law may be exercised and liability to such depositor assumed by the new bank, enjoyed. whereupon all further dividends shall be payable to such "Seventh. To exercise by its board of directors, or depositor. Of the amount thus made available by the duly authorized officers or agents, all powers specifically Corporation to the new bank, such portion shall be paid granted by the provisions of this section and such inci- to it in cash as may be necessary to enable it to meet dental powers as shall be necessary to carry out the immediate cash demands and the remainder shall be powers so granted. credited "to it on the books of the Corporation subject "(k) The board of directors shall administer the to withdrawal on demand and shall bear interest at the affairs of the Corporation fairly and impartially and rate of 3 per centum per annum until withdrawn. The without discrimination. The board of directors of the new bank may, with the approval of the Corporation, Corporation shall determine and prescribe the manner accept new deposits, which, together with all amounts in which its obligations shall be incurred and its ex- made available to the new bank by the Corporation, penses allowed and paid. The Corporation shall be shall be kept on hand in cash, invested in direct obligaentitled to the free use of the United States mails in the tions of the United States, or deposited with the Corsame manner as the executive departments of the Gov- poration or with a Federal reserve bank. Such new ernment. The Corporation with the consent of any bank shall maintain on deposit with the Federal reserve Federal reserve bank or of any board, commission, inde- bank of its district the reserves required by law of mempendent establishment, or executive department of the ber banks but shall not be required to subscribe for Government, including any field service thereof, may stock of the Federal reserve bank until its own capital avail itself of the use of information, services, and facili- stock has been subscribed and paid for in the manner ties thereof in carrying out the provisions of this section. hereinafter provided. The articles of association and " (1) Effective on and after July 1, 1934 (thus afford-organization certificate of such new bank may be exeing ample time for examination and preparation), cuted by such representatives of the Corporation as it unless the President shall by proclamation fix an earlier may designate; the new bank shall not be required to date, the Corporation shall insure as hereinafter pro- have any directors at the time of its organization, but vided the deposits of all member banks, and on and shall be managed by an executive officer to be desigafter such date and until July 1, 1936, of all nonmember nated by the Corporation; and no capital stock need be banks, which are class A stockholders of the Corpora- paid in by the Corporation; but in other respects such tion. Notwithstanding any other provision of law, bank shall be organized in accordance with the existing whenever any national bank which is a class A stock- provisions of law relating to the organization of national holder of the Corporation shall have been closed by banks; and, until the requisite amount of capital stock action of its board of directors or by the Comptroller for such bank has been subscribed and paid for in the of the Currency, as the case may be, on account of manner hereinafter provided, such bank shall transact inability to meet the demands of its depositors, the no business except that authorized by this subsection Comptroller of the Currency shall appoint the Corpora- and such business as may be incidental to its organization receiver for such bank. As soon as possible there- tion. When in the judgment of the Corporation it is after the Corporation shall organize a new national desirable to do so, the Corporation shall offer capital bank to assume the insured deposit liabilities of such stock of the new bank for sale on such terms and condiclosed bank, to receive new deposits and otherwise to tions as the Corporation shall deem advisable, in an perform temporarily the functions provided for it in amount sufficient in the opinion of the Corporation to this paragraph. For the purposes of this subsection, make possible the conduct of the business of the new the term 'insured deposit liability* shall mean with bank on a sound basis, but in no event less than that respect to the owner of any claim arising out of a required by section 5138 of the Revised Statutes, as deposit liability of such closed bank the following per- amended (U.S.C., title 12, sec. 51), for the organization centages of the net amount due to such owner by such of a national bank in the place where such new bank is closed bank on account of deposit liabilities: 100 per located, giving the stockholders of the closed bank the centum of such net amount not exceeding $10,000; and first opportunity to purchase such stock. Upon proof 75 per centum of the amount, if any, by which such that an adequate amount of capital stock of the new net aniount exceeds $10,000 but does not exceed bank has been subscribed and paid for in cash by sub- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1933 FEDERAL RESERVE BULLETIN 391 scribers satisfactory to the Comptroller of the Currency, case of a closed national bank under this subsection, he shall issue to such bank a certificate of authority such recognition being accorded by State law, by allowto commence business and thereafter it shall be man- ance of claims by the appropriate State authority, by aged by directors elected by its own shareholders and assignment of claims by depositors, or by any other may exercise all of the powers granted by law to effective method, the Corporation shall make available national banking associations. If an adequate amount to such new national bank, in the manner prescribed of capital for such new bank is not subscribed and paid by this subsection, an amount equal to the insured in, the Corporation may offer to transfer its business to deposit liabilities of such closed State member bank; any other banking institution in the same place which and the Corporation and such new national bank shall will take over its assets, assume its liabilities, and pay perform all of the functions and duties and shall have to the Corporation for such business such amount as all the rights and privileges with respect to such State the Corporation may deem adequate. Unless the member bank and the depositors thereof which are capital stock of the new bank is sold or its assets prescribed by this subsection with respect to closed acquired and its liabilities assumed by another banking national banks holding class A stock in the Corporation: institution, in the manner herein prescribed, within Provided, That the rights of depositors and other two years from the date of its organization, the Cor- creditors of such State member bank shall be deterporation shall place the new bank in voluntary liquida- mined in accordance with the applicable provisions of tion and wind up its affairs. The Corporation shall State law: And provided further, That, with respect to open on its books a deposit insurance account and, as such State member bank, the Corporation shall possess soon as possible after taking possession of any closed the powers and privileges provided by State law with national bank, the Corporation shall make an estimate respect to a receiver of such State member bank, except of the amount which will be available from all sources in so far as the same are in conflict with the provisions of for application in satisfaction of the portion of the this subsection. claims of depositors to which it has been subrogated " Whenever any State member bank which is a class and shall debit to such deposit insurance account the A stockholder of the Corporation shall have been closed excess, if any, of the amount made available by the by action of its board of directors or by the appropriate Corporation to the new bank for depositors over and State authority, as the case may be, on account of above the amount of such estimate. It shall be the inability to meet the demands of its depositors, and the duty of the Corporation to realize upon the assets of applicable State law does not permit the appointment such closed bank, haying due regard to the condition of the Corporation as receiver of such bank, the Corof credit in the district in which such closed bank is poration shall organize a new national bank, in aclocated; to enforce the individual liability of the stockcordance with the provisions of this subsection, to holders and directors thereof; and to wind up the affairs assume the insured deposit liabilities of such closed of such closed bank in conformity with the provisions State member bank, to receive new deposits, and otherof law relating to the liquidation of closed national wise to perform temporarily the functions provided for banks, except as herein otherwise provided, retaining in this subsection. Upon satisfactory recognition of for its own account such portion of the amount realized the right of the Corporation to receive dividends on from such liquidation as it shall be entitled to receive the same basis as in the case of a closed national bank on account of its subrogation to the claims of depositors under this subsection, such recognition being accorded and paying to depositors and other creditors the amount by State law, by allowance of claims by the appropriate available for distribution to them, after deducting State authority, by assignment of claims by depositors, therefrom their share of the costs of the liquidation of or by any other effective method, the Corporation shall the closed bank. If the total amount realized by the make available to such new bank, in accordance with Corporation on account of its subrogation to the claims the provisions of this subsection, the amount of insured of depositors be less than the amount of the estimate deposit liabilities as to which such recognition has been hereinabove provided for, the deposit insurance account accorded; and such new bank shall assume such insured shall be charged with the deficiency and, if the total deposit liabilities and shall in other respects comply amount so realized shall exceed the amount of such with the provisions of this subsection respecting new estimate, such account shall be credited with such banks organized to assume insured deposit liabilities of excess. With respect to such closed national banks, closed national banks. In so far as possible in view of the Corporation shall have all the rights, powers, and the applicable provisions of State law, the Corporaprivileges now possessed by or hereafter given receivers tion shall proceed with respect to the receiver of such of insolvent national banks and shall be subject to the closed bank and with respect to the new bank organized obligations and penalties not inconsistent with the to assume its insured deposit liabilities in the manner provisions of this paragraph to which such receivers prescribed by this subsection with respect to closed are now or may hereafter become subject. national banks and new banks organized to assume their " Whenever any State member bank which is a class insured deposit liabilities; except that the Corporation A stockholder of the Corporation shall have been closed shall have none of the powers, duties, or responsibilities by action of its board of directors or by the appropriate of a receiver with respect to the winding up of the affairs State authority, as the case may be, on account of of such closed State member bank. The Corporation, inability to meet the demands of its depositors, the in its discretion, however, may purchase and liquidate Corporation shall accept .appointment as receiver any or all of the assets of such bank. thereof, if such appointment be tendered by the ap- "Whenever the net debit balance of the deposit propriate State authority and be authorized or per- insurance account of the Corporation shall equal or mitted by State law. Thereupon the Corporation shall sxceed one fourth of 1 per centum of the total deposit organize a new national bank, in accordance with the liabilities of all class A stockholders as of the date of provisions of this subsection, to assume the insured the last preceding call report, the Corporation shall deposit liabilities of such closed State member bank, to levy upon such stockholders an assessment equal to receive new deposits and otherwise to perform tem- one fourth of 1 per centum of their total deposit liabilities porarily the functions provided for in this subsection. and shall credit the amount collected from such assess- Upon satisfactory recognition of the right of the Corpo- ment to such deposit insurance account. No bank ration to receive dividends on the same basis as in the which is a holder of class A stock shall pay any divi- 177784—33 5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

392 FEDERAL RESERVE BULLETIN JUNE 1933 dends until all assessments levied upon it by the Cor- section 5235 of the Revised Statutes (U.S.C., title 12, poration shall have been paid in full; and any director sec. 193), and no liability shall attach to the Comptroller or officer of any such bank who participates in the of the Currency or to the receiver of any national bank declaration or payment of any such dividend may, by reason of any such payment for failure to pay diviupon conviction, be fined not more than $1,000, or dends to a claimant whose claim is not proved at the imprisoned for not more than one year, or both. ime of any such payment. "The term 'receiver' as used in this section shall "(o) The Corporation is authorized and empowered mean a receiver, liquidating agent, or conservator of a to issue and to have outstanding at any one time in national bank, and a receiver, liquidating agent, con- an amount aggregating not more than three times the servator, commission, person, or other agency charged amount of its capital, its notes, debentures, bonds, or by State law with the responsibility and the duty of other such obligations, to be redeemable at the option winding up the affairs of an insolvent State member of the Corporation before maturity in such manner as bank. may be stipulated in such obligations, and to bear such "For the purposes of this section only, the term rate or rates of interest, and to mature at such time or 1 national bank' shall include all national banking times as may be determined by the Corporation: associations and all banks, banking associations, trust Provided, That the Corporation may sell on a discount companies, sayings banks, and other banking insitu- basis short-term obligations payable at maturity withtions located in the District of Columbia which are out interest. The notes, debentures, bonds, and other members of the Federal Reserve System; and the term such obligations of the Corporation may be secured 'State member bank' shall include all State banks, by assets of the Corporation in such manner as shall banking associations, trust companies, savings banks, be prescribed by its board of directors. Such obligaand other banking institutions organized under the laws tions may be offered for sale at such price or prices as of any State, which are members of the Federal Reserve the Corporation may determine. System. "(p) All notes, debentures, bonds, or other such "In any determination of the insured deposit liabili- obligations issued by the Corporation shall be exempt, ties of any closed bank or of the total deposit liabilities both as to principal and interest, from all taxation of any bank which is a holder of class A stock of the (except estate and inheritance taxes) now or hereafter Corporation, or a member of the Fund provided for in imposed by the United States, by any Territory, subsection (y), for the purposes of this section, there dependency, or possession thereof, or by any State, shall be excluded the amounts of all deposits of such county, municipality, or local taxing authority. The bank which are payable only at an office thereof located Corporation, including its franchise, its capital, in a foreign country. reserves, and surplus, and its income, shall be exempt from all taxation now or hereafter imposed by the "The Corporation may make such rules, regulations, United States, by any Territory, dependency, or posand contracts as it may deem necessary in order to session thereof, or by any State, county, municipality, carry out the provisions of this section. or local taxing authority, except that any real property "Money of the Corporation not otherwise employed of the Corporation shall be subject to State, Territorial, shall be invested in securities of the Government of the county, municipal or local taxation to the same extent United States, except that for temporary periods, in according to its value as other real property is taxed. the discretion of the board of directors, funds of the Corporation may be deposited in any Federal reserve " (q) In order that the Corporation may be supplied bank or with the Treasurer of the United States. with such forms of notes, debentures, bonds, or other When designated for that purpose by the Secretary of such obligations as it may need for issuance undef this the Treasury, the Corporation shall be a depositary of Act, the Secretary of the Treasury is authorized to public moneys, except receipts from customs, under prepare such forms as shall be suitable and approved such regulations as may be prescribed by the said by the Corporation, to be held in the Treasury subject Secretary, and may also be employed as a financial agent to delivery, upon order of the Corporation. The of the Government. It shall perform all such reasonable engraved plates, dies, bed pieces, and other material executed in connection therewith shall remain in the duties as depositary of public moneys and financial custody of the Secretary of the Treasury. The Coragent of the Government as may be required of it. poration shall reimburse the Secretary of the Treasury "(m) Nothing herein contained shall be construed for any expenses incurred in the preparation, custody, to prevent the Corporation from making loans to and delivery of such notes, debentures, bonds, or other national banks closed by action of the Comptroller of such obligations. the Currency, or by vote of their directors, or to State "(r) The Corporation shall annually make a report member banks closed by action of the appropriate of its operations to the Congress as soon as practicable State authorities, or by vote of their directors, or from after the 1st day of January in each year. entering into negotiations to secure the reopening of "(s) Whoever, for the purpose of obtaining any such banks. loan from the Corporation, or any extension or renewal " (n) Receivers or liquidators of member banks which thereof, or the acceptance, release, or substitution of are now or may hereafter become insolvent or suspended security therefor, or for the purpose of inducing the shall be entitled to offer the assets of such banks for Corporation to purchase any assets, or for the purpose sale to the Corporation or as security for loans from of influencing in any way the action of the Corporathe Corporation, upon receiving permission from the tion under this section, makes any statement, knowing appropriate State authority in accordance with express it to be false, or willfully overvalues any security, shall provisions of State law in the case of State member be punished by a fine of not more than $5,000, or by banks, or from the Comptroller of the Currency in the imprisonment for not more than two years, or both. case of national banks. The proceeds of every such "(t) Whoever (1) falsely makes, forges, or countersale or loan shall be utilized for the same purposes and feits any obligation or coupon, in imitation of or purin the same manner as other funds realized from the porting to be an obligation or coupon issued by the liquidation of the assets of such banks. The Comp- Corporation, or (2) passes, utters, or publishes, or troller of the Currency may, in his discretion, pay attempts to pass, utter, or publish, any false, forged, or dividends on proved claims at any time after the expiracounterfeited obligation or coupon, purporting to have tion of the period of advertisement made pursuant to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1933 FEDERAL RESERVE BULLETIN 393 been issued by the Corporation, knowing the same to be January 1, 1934, become a member of the Fund; each false, forged, or counterfeited, or (3) falsely alters any member bank so licensed after such date, and each State obligation or coupon issued or purporting to have been bank trust company or mutual savings bank (referred issued by the Corporation, or (4) passes, utters, or pub- to in this subsection as 'State bank', which term shall lishes, or attempts to pass, utter, or publish, as true, any also include all banking institutions located in the Disfalsely altered or spurious obligation or coupon, issued trict of Columbia) which becomes a member of the or purporting to have been issued by the Corporation, Federal Reserve System on or after such date, shall, upon knowing the same to be falsely altered or spurious, shall being so licensed or so admitted to membership, become be punished by a fine of not more than $10,000, or by a member of the Fund; and any State bank which is not imprisonment for not more than five years, or both. a member of the Federal Reserve System, with the "(u) Whoever, being connected in any capacity approval of the authority having supervision of such with the Corporation, (1) embezzles, abstracts, pur- State bank and certification to the Corporation by such loins, or willfully misapplies any moneys, funds, secur- authority that such State bank is in solvent condition, ities, or other things of value, whether belonging to it shall, after examination by, and with the approval of, the or pledged, or otherwise intrusted to it, or (2) with Corporation, be entitled to become a member of the Fund intent to defraud the Corporation or any other body, and to the privileges of this subsection upon agreeing to politic or corporate, or any individual, or to deceive any comply with the requirements thereof and upon paying .officer, auditor, or examiner of the Corporation, makes to the Corporation an amount equal to the amount that any false entry in any book, report, or statement of or would be required of it under this subsection if it were to the Corporation, or without being duly authorized a member bank. The Corporation is authorized to predraws any order or issues, puts forth, or assigns any scribe rules and regulations for the further examination note, debenture, bond, or other such obligation, or of such State bank, and to fix the compensation of examdraft, bill of exchange, mortgage, judgment, or decree iners employed to make examinations of State banks. thereof, shall be punished by a fine of not more than "Each member of the Fund shall file with the $10,000, or by imprisonment for not more than five Corporation on or before the date of its admission a ceryears, or both. tified statement under oath showing, as of the fifteenth " (v) No individual, association, partnership, or cor- day of the month preceding the month in which it was poration shall use the words 'Federal Deposit Insurance so admitted, the number of its depositors and the total Corporation', or a combination or any three of these amount of its deposits which are eligible for insurance four words, as the name or a part thereof under which under this subsection, and shall pay to the Corporation he or it shall do business. No individual, association, an amount equal to one-half of 1 per centum of the total partnership, or corporation shall advertise or otherwise amount of the deposits so certified. One-half of such represent falsely by any device whatsoever that his or payment shall be paid in full at the time of the admission its deposit liabilites are insured or in anywise guaran- of such member to the Fund, and the remainder of such teed by the Federal Deposit Insurance Corporation, or payment shall be subject to call from time to time by by the Government of the United States, or by any the board of directors of the Corporation. Within a instrumentality thereof; and no class A stockholder of reasonable time fixed by the Corporation each such the Federal Deposit Insurance Corporation shall adver- member shall file a similar statement showing, as of tise or otherwise represent falsely by any device what- June 15, 1934, the number of its depositors and the soever the extent to which or the manner in which its total amount of its deposits which are eligible for such deposit liabilities are insured by the Federal Deposit insurance and shall pay to the Corporation in the Insurance Corporation. Every individual, partner- same manner an amount equal to one-half of 1 per centum of the increase, if any, in the total amount of ship, association, or corporation violating this subsuch deposits since the date covered by the statement section shall be punished by a fine of not exceeding filed upon its admission to membership in the Fund. $1,000, or by imprisonment not exceeding one year, or both. "If at any time prior to July 1, 1934, the Corporation " (w) The provisions of sections 112,113,114,115,116, requires additional funds with which to meet its obligaand 117 of the Criminal Code of the United States tions under this subsection, each member of the Fund (U.S.C., title 18, ch. 5, sees. 202 to 207, inclusive), in shall be subject to one additional assessment only in so far as applicable, are extended to apply to contracts an amount not exceeding the total amount theretofore or agreements with the Corporation under this section, paid to the Corporation by such member. which for the purposes hereof shall be held t6 include "If any member of the Fund shall be closed on or loans, advances, extensions, and renewals thereof, and before June 30, 1934, on account of inability to meet acceptances, releases, and substitutions of security its deposit liabilities, the Corporation shall proceed in therefor, purchases or sales of assets, and all contracts accordance with the provisions of subsection (1) of and agreements pertaining to the same. this section to pay the insured deposit liabilities of "(x) The Secret Service Division of the Treasury such member; except that the Corporation shall pay Department is authorized to detect, arrest, and deliver not more than $2,500 on account of the net approved into the custody of the United States marshal having claim of the owner of any deposit. The provisions of jurisdiction any person committing any of the offenses such subsection (1) relating to State member banks punishable under this section. shall be extended for the purposes of this subsection "(y) The Corporation shall open on its books a to members of the Fund which are not members of the Temporary Federal Deposit Insurance Fund (hereinafter Federal Reserve System; and the provisions of this referred to as the 'Fund')/ which shall become operative subsection shall apply only to deposits of members of the Fund which have been made available since March on January 1, 1934, unless the President shall by proc- 10, 1933, for withdrawal in the usual course of the lamation fix an earlier date, and it shall be the duty of banking business. the Corporation to insure deposits as hereinafter provided until July 1, 1934. "Before July 1, 1934, the Corporation shall make an "Each member bank licensed before January 1, 1934, estimate of the balance, if any, which will remain in by the Secretary of the Treasury pursuant to the the Fund after providing for all liabilities of the Fund, authority vested in him by the Executive order of the including expenses of operation thereof under this President issued March 10, 1933, shall, on or before subsection and allowing for anticipated recoveries. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

394 FEDERAL RESERVE BULLETIN JUNE 1933 The Corporation shall refund such estimated balance, actions of any kind entered into by any Federal reserve on such basis as the Corporation shall find to be equi- bank with any foreign bank or banker, or with any table, to the members of the Fund other than those group of foreign banks or bankers, and all such relationwhich have been closed prior to July 1,1934. ships and transactions shall be subject to such regula- "Each State bank which is a member of the Fund, tions, conditions, and limitations as the Board may in order to obtain the benefits of this section after prescribe. No officer or other representative of any July 1, 1934, shall, on or before such date, subscribe Federal reserve bank shall conduct negotiations of any and pay for the same amount of class A stock of the kind with the officers or representatives of any foreign Corporation as it would be required to subscribe and bank or banker without first obtaining the permission pay for upon becoming a member bank, or if such of the Federal Reserve Board. The Federal Reserve State bank is not permitted by the laws under which it Board shall have the right, in its discretion, to be was organized to purchase such stock, it shall deposit represented in any conference or negotiations by such with the Corporation an amount equal to the amount representative or representatives as the Board may it would have been required to pay in on account of a designate. A full report of all conferences or negotiasubscription to such stock; and thereafter such State tions, and all understandings or agreements arrived at bank shall be entitled to such benefits until July 1, 1936. or transactions agreed upon, and all other material facts " It is not the purpose of this section to discriminate, appertaining to such conferences or negotiations, shall in any manner, against State nonmember, and in favor be filed with the Federal Reserve Board in writing by a of, national or member banks; but the purpose is to duly authorized officer of each Federal reserve bank* provide all banks with the same opportunity to obtain which shall have participated in such conferences or and enjoy the benefits of this section. No bank shall be negotiations." discriminated against because its capital stock is less SEC. 11. (a) Section 19 of the Federal Reserve Act, than the amount required for eligibility for admission as amended (U.S.C., title 12, sees. 142, 374, 461-466; into the Federal Reserve System." Supp. VI, title 12, sec. 462a), is amended by inserting SEC. 9. The eighth paragraph of section 13 of the after the sixth paragraph thereof the following new Federal Reserve Act, as amended (U.S.C., title 12, paragraph: sec. 347; Supp. VI, title 12, sec. 347), is amended to "No member bank shall act as the medium or agent read as follows: of any nonbanking corporation, partnership, associa- "Any Federal reserve bank may make advances for tion, business trust, or individual in making loans on periods not exceeding fifteen days to its member banks the security of stocks, bonds, and other investment on their promisory notes secured by the deposit or securities to brokers or dealers in stocks, bonds, and pledge of bonds, notes, certificates of indebtedness, or other investment securities. Every violation of this Treasury bills of the United States, or by the deposit provision by any member bank shall be punishable by or pledge of debentures or other such obligations of a fine of not more than $100 per day during the con- Federal intermediate credit banks which are eligible for tinuance of such violation; and such fine may be purchase by Federal reserve banks under section 13 (a) collected, by suit or otherwise, by the Federal reserve of this Act; and any Federal reserve bank may make bank of the district in which such member bank is advances for periods not exceeding ninety days to its located." member banks on their promissory notes secured by (b) Such section 19 of the Federal Reserve Act, as such notes, drafts, bills of exchange, or bankers' accept- amended, is further amended by adding at the end ances as are eligible for rediscount or for purchase by thereof the following new paragraphs: Federal reserve banks under the provisions of this Act. "No member bank shall, directly or indirectly by All such advances shall be made at rates to be estab- any device whatsoever, pay any interest on any deposit lished by such Federal reserve banks, such rates to be which is payable on demand: Provided, That nothing subject to the review and determination of the Federal herein contained shall be construed as prohibiting the Reserve Board. If any member bank to which any payment of interest in accordance with the terms of such advance has been made shall, during the life or any certificate of deposit or other contract heretofore continuance of such advance, and despite an official entered into in good faith which is in force on the date warning of the reserve bank of the district or of the of the enactment of this paragraph; but no such certifi- Federal Reserve Board to the contrary, increase its cate of deposit or other contract shall be renewed or outstanding loans secured by collateral in the form of extended unless it shall be modified to conform to this stocks, bonds, debentures, or other such obligations, or paragraph, and every member bank shall take such loans made to members of any organized stock exchange, action as may be necessary to conform to this parainvestment house, or dealer in securities, upon any graph as soon as possible consistently with its contracobligation, note, or bill, secured or unsecured, for the tual obligations: Provided, however, That this parapurpose of purchasing and/or carrying stocks, bonds, graph shall not apply to any deposit of such bank which or other investment securities (except obligations of is payable only at an office thereof located in a foreign the United States) such advance shall be deemed country, and shall not apply to any deposit made by a immediately due and payable, and such member bank mutual savings bank, nor to any deposit of public shall be ineligible as a borrower at the reserve bank of funds made by or on behalf of any State, county, school the district under the provisions of this paragraph for district, or other subdivision or municipality, with such period as the Federal Reserve Board shall respect to which payment of interest is required under determine: Provided, That no temporary carrying or State law. clearance loans made solely for the purpose of facili- "The Federal Reserve Board shall from time to time tating the purchase or delivery of securities offered for limit by regulation the rate of interest which may be public subscription shall be included in the loans paid by member banks on time deposits, and may referred to in this paragraph." prescribe different rates for such payment on time and SEC. 10. Section 14 of the Federal Reserve Act, as savings deposits having different maturities or subject amended (U. S. C, title 12, sees. 353-358), is amended byto different conditions respecting withdrawal or repayadding at the end thereof the following new paragraph: ment or subject to different conditions by reason of "(g) The Federal Reserve Board shall exercise different locations. No member bank shall pay any special supervision over all relationships and trans- time deposit before its maturity, or Iwaive any require- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1933 FEDERAL RESERVE BULLETIN 395 ment of notice before payment of any savings deposit collateral security for advances made to any person, except as to all savings deposits having the same partnership, association, or corporation, if, in the case requirement." of any such affiliate, the aggregate amount of such loans, (c) Section 8 of the Act entitled " An Act to establish extensions of credit, repurchase agreements, investpostal savings depositories for depositing savings at ments, and advances against such collateral security interest with the security of the Government for repay- will exceed 10 per centum of the capital stock and ment thereof, and for other purposes", approved surplus of such member bank, or if, in the case of all June 25, 1910, as amended (U.S.C., title 39, sec. 758), such affiliates, the aggregate amount of such loans, is amended by striking out the first sentence thereof extensions of credits, repurchase agreements, investand inserting in lieu thereof the following: "Any ments, and advances against such collateral security depositor may withdraw the whole or any part of the will exceed 20 per centum of the capital stock and surfunds deposited to his or her credit with the accrued plus of such member bank. interest only on notice given sixty days in advance and " Within the foregoing limitations, each loan or extenunder such regulations as the Postmaster General may sion of credit of any kind or character to an affiliate prescribe; but withdrawal of any part of such funds may shall be secured by collateral in the form of stocks, be made upon demand, but no interest shall be paid bonds, debentures, or other such obligations having on any funds so withdrawn except interest accrued to a market value at the time of making the loan or extenthe date of enactment of the Banking Act of 1933: sion of credit of at least 20 per centum more than the Provided, That Postal Savings depositories may depositamount of the loan or extension of credit, or of at least funds in member banks on time under regulations to 10 per centum more than the amount of the loan or be prescribed by the Postmaster General." extension of credit if it is secured by obligations of any (d) The second sentence of section 9 of the Act en- State, or of any political subdivision or agency thereof: titled "An Act to establish postal savings depositories Provided^ That the provisions of this paragraph shall for depositing savings at interest with the security of not apply to loans or extensions of credit secured by the Government for repayment thereof, and for other obligations of the United States Government, the purposes", approved June 25,1910, as amended (XJ.S.C, Federal intermediate credit banks, the Federal land title 39, sec. 759), is amended by striking out the banks, the Federal Home Loan Banks, or the Home period at the end thereof and inserting in lieu thereof Owners' Loan Corporation, or by such notes, drafts, a colon and the following: "Provided, That no such bills of exchange, or bankers' acceptances as are eligible security shall be required in case of such part of the for rediscount or for purchase by Federal Reserve banks. deposits as are insured under section 12B of the Federal A loan or extension of credit to a director officer, clerk, Reserve Act, as amended." or other employee or any representative of any such SEC. 12. Section 22 of the Federal Reserve Act, as affiliate shall be deemed a loan to the affiliate to the amended (U.S.C., title 12, sees. 375, 376, 503, 593-595; extent that the proceeds of such loan are used for the Supp. VI, title 12, sec. 593), is further amended by benefit of, or transferred to, the affiliate. adding at the end thereof the following new paragraph: "For the purposes of this section the term 'affiliate' "(g) No executive officer of any member bank shall shall include holding company affiliates as well as other borrow from or otherwise become indebted to any affiliates, and the provisions of this section shall not member bank of which he is an executive officer, and apply to any affiliate (1) engaged solely in holding the no member bank shall make any loan or extend credit bank premises of the member bank with which it is in any other manner to any of its own executive affiliated, (2) engaged solely in conducting a safeofficers: Provided, That loans heretofore made to anydeposit business or the business of an agricultural credit such officer may be renewed or extended not more than corporation or livestock loan company, (3) in the capital two years from the date this paragraph takes effect, if stock of which a national banking association is in accord with sound banking practice. If any execu- authorized to invest pursuant to section 25 of the tive officer of any member bank borrow from or if he be Federal Reserve Act, as amended, (4) organized under or become indebted to any bank other than a member section 25 (a) of the Federal Reserve Act, as amended, bank of which he is an executive officer, he shall make or (5) engaged solely in holding obligations of the a written report to the chairman of the board of direc- United States Government, the Federal intermediate tors of the member bank of which he is an executive credit banks, the Federal land banks, the Federal officer, stating the date and amount of such loan or Home Loan Banks, or the Home Owners' Loan Corindebtedness, the security therefor, and the purpose poration; but as to any such affiliate, member banks for which the proceeds have been or are to be used. shall continue to be subject to other provisions of law Any executive officer of any member bank violating applicable to loans by such banks and investments the provisions of this paragraph shall be deemed guilty by such banks in stocks, bonds, debentures, or other of a misdemeanor and shall be imprisoned not exceeding such obligations." one year, or fined not more than $5,000, or both; and SEC. 14. The Federal Reserve Act, as amended, is any member bank violating the provisions of this amended by inserting between section 24 and section paragraph shall be fined not more than $10,000, and 25 thereof (U.S.C., title 12, sees. 371 and 601-605; may be fined a further sum equal to the amount so Supp. VI, title 12, sec. 371) the following new section: loaned or credit so extended." "SEC. 24A. Hereafter no national bank, without the SEC. 13. The Federal Reserve Act, as amended, is approval of the Comptroller of the Currency, and no amended by inserting between sections 23 and 24 State member bank, without the approval of the Fedthereof (U.S.C., title 12, sees. 64 and 371; Supp. VI, eral Reserve Board, shall (1) invest in bank premises, title 12, sec. 371) the following new section: or in the stock, bonds, debentures, or other such "SEC. 23A. No member bank shall (1) make any obligations of any corporation holding the premises of loan or any extension of credit to, or purchase securities such bank or (2) make loans to or upon the security under repurchase agreement from, any of its affiliates, of the stock of any such corporation, if the aggregate or (2) invest any of its funds in the capital stock, bonds, of all such investments and loans will exceed the amount debentures, or other such obligations of any such of the capital stock of such bank." affiliate, or (3) accept the capital stock, bonds, deben- SEC. 15. The Federal Reserve Act, as amended, is tures, or other such obligations of any such affiliate as further amended by inserting after section 25 (a) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

396 FEDERAL RESERVE BULLETIN JUNE 1933 thereof (U.S.C., title 12, sec. 611-631) the following of the capital of the association, nor (2) shall the total new section: amount of the investment securities of any one obligor "SEC. 25. (b) Notwithstanding any other provision or maker purchased after this section as amended takes of law all suits of a civil nature at common law or in effect and held by the association for its own account equity to which any corporation organized under the exceed at any time 15 per centum of the amount of the laws of the United States shall be a party, arising out of capital stock of the association actually paid in and transactions involving international or foreign banking, unimpaired and 25 per centum of its unimpaired surplus or banking in a dependency or insular possession of the fund. As used in this section the term 'investment United States, or out of other international or foreign securities' shall mean marketable obligations evidencing financial operations, either directly or through the indebtedness of any person, copartnership, association, agency, ownership, or control of branches or local or corporation in the form of bonds, notes and/or deinstitutions in dependencies or insular possessions of bentures commonly known as investment securities unthe United States or in foreign countries, shall be der such further definition of the term 'investment sedeemed to arise under the laws of the United States, curities' as may by regulation be prescribed by the and the district courts of the United States shall have Comptroller of the Currency. Except as hereinafter original jurisdiction of all such suits; and any defendant provided or otherwise permitted by law, nothing herein in any such suit may, at any time before the trial contained shall authorize the purchase by the associathereof, remove such suits from a State court into the tion of any shares of stock of any corporation. The district court of the United States for the proper limitations and restrictions herein contained as to dealdistrict by following the procedure for the removal of ing in, underwriting and purchasing for its own account, causes otherwise provided by law. Such removal shall investment securities shall not apply to obligations of not cause undue delay in the trial of such case and a the United States, or general obligations of any State case so removed shall have a place on the calendar of or of any political subdivision thereof, or obligations the United States court to which it is removed relative issued under authority of the Federal Farm Loan Act, to that which it held on the State court from which it as amended, or issued by the Federal Home Loan Banks was removed. or the Home Owners' Loan Corporation: Provided, That in carrying on the business commonly known as "Notwithstanding any other provision of law, all the safe-deposit business the association shall not invest suits of a civil nature at common law or in equity to in the capital stock of a corporation organized under which any Federal Reserve bank shall be a party the law of any State to conduct a safe-deposit business shall be deemed to arise under the laws of the United in an amount in excess of 15 per centum of the capital States, and the district courts of the United States shall stock of the association actually paid in and unimpaired have original jurisdiction of all such suits; and any and 15 per centum of its unimpaired surplus." Federal Reserve bank which is a defendant in any such suit may, at any time before the trial thereof, The restrictions of this section as to dealing in investremove such suit from a State court into the district ment securities shall take effect one year after the date court of the United States for the proper district by of the approval of this Act. following the procedure for the removal of causes SEC. 17. (a) Section 5138 of the Revised Statutes, as otherwise provided by law. No attachment or execu- amended (U.S.C., title 12, sec. 51; Supp. VI, title 12, tion shall be issued against any Federal Reserve bank sec. 51), is amended to read as follows: or its property before final judgment in any suit, "SEC. 5138. After this section as amended takes action, or proceeding in any State, county, municipal, effect, no national banking association shall be organor United States court." ized with a less capital than $100,000> except that such SEC. 16. Paragraph "Seventh" of section 5136 of the associations with a capital of not less than $50,000 Revised Statutes, as amended (U.S.C., title 12, sec. 24; may be organized in any place the population of which Supp. VI, title 12, sec. 24), is amended to read as does not exceed six thousand inhabitants. No such follows: association shall be organized in a city the population "Seventh. To exercise by its board of directors or of which exceeds fifty thousand persons with a capital duly authorized officers or agents, subject to law, all of less than $200,000, except that in the outlying dissuch incidental powers as shall be necessary to carry on tricts of such a city where the State laws permit the the business of banking; by discounting and negotiat- organization of State banks with a capital of $100,000 ing promissory notes, drafts, bills of exchange, and other or less, national banking associations now organized or evidences of debt; by receiving deposits; by buying hereafter organized may, with the approval of the and selling exchange, coin, and bullion; by loaning Comptroller of the Currency, have a capital of not less money on personal security; and by obtaining, issuing, than $100,000." and circulating notes according to the provisions of (b) The tenth paragraph of section 9 of the Federal this title. The business of dealing in investment se- Reserve Act, as amended (U.S.C., title 12, sec. 329), is curities by the association shall be limited to purchasing amended to read as follows: and selling such securities without recourse, solely upon "No applying bank shall be admitted to membership the order, and for the account of, customers, and in no in a Federal reserve bank unless it possesses a paid-up case for its own account, and the association shall not unimpaired capital sufficient to entitle it to become a underwrite any issue of securities: Provided, That thenational banking association in the place where it is association may purchase for its own account invest- situated under the provisions of the National Bank ment securities under such limitations and restrictions Act, as amended: Provided, That this paragraph shall as the Comptroller of the Currency may by regulation not apply to State banks and trust companies organized prescribe, but in no event (1) shall the total amount of prior to the date this paragraph as amended takes any issue of investment securities of any one obligor or effect and situated in a place the population of which maker purchased after this section as amended takes does not exceed three thousand inhabitants and having effect and held by the association for its own account a capital of not less than $25,000, nor to any State bank exceed at any time 10 per centum of the total amount or trust company which is so situated and which, while of such issue outstanding, but this limitation shall not it is entitled to the benefits of insurance under section apply to any such issue the total amount of which does 12B of this Act, increases its capital to not less than not exceed $100,000 and does not exceed 50 per centum $25,000." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1933 FEDERAL RESERVE BULLETIN 397 SEC. 18. Section 5139 of the Revised Statutes, as relations between such banks and such holding comamended (U.S.C., title 12, sec. 52; Supp. VI, title 12, pany affiliate and the effect of such relations upon the sec. 52), is amended by adding at the end thereof the affairs of such banks, such examinations to be at the following new paragraph: expense of the holding company affiliate so examined; "After one year from the date of the enactment of £2) that the reports of such examiners shall contain such the Banking Act of 1933, no certificate representing information as shall be necessary to disclose fully the the stock of any such association shall represent the relations between such affiliate and such banks and the stock of any other corporation, except a member bank effect of such relations upon the affairs of such banks; or a corporation existing on the date this paragraph (3) thax such examiners may examine each bank takes effect engaged solely in holding the bank premises owned or controlled by the holding company affiliate, of such association, nor shall the ownership, sale, or both individually and in conjunction with other banks transfer of any certificate representing the stock of any owned or controlled by such holding company affiliate; such association be conditioned in any manner what- and (4) that publication or individual or consolidated soever upon the ownership, sale, or transfer of a certifi- statements of condition of such banks may be required; cate representing the stock of any other corporation, "(b) After five years after the enactment or the except a member bank." Banking Act of 1933, every such holding company SEC. 19. Section 5144 of the Revised Statutes, as affiliate (1) shall possess, and shall continue to possess amended (U.S.C., title 12, sec. 61), is amended to read during the life of such permit, free and clear of any lien, as follows: pledge, or hypothecation of any nature, readily market- "SEC. 5144. In all elections of directors, each share- able assets other than bank stock in an amount not holder shall have the right to vote the number of shares less than 12 per centum of the aggregate par value of all owned by him for as many persons as there are directors bank stocks controlled by such holding company to be elected, or to cumulate such shares and give one affiliate, which amount shall be increased by not less candidate as many votes as the number of directors than 2 per centum per annum of such aggregate par multiplied by the number of his shares shall equal, or to value until such assets shall amount to 25 per centum of distribute them on the same principle among as many the aggregate par value of such bank stocks; and candidates as he shall think fit; and in deciding all other (2) shall reinvest in readily marketable assets other than questions at meetings of shareholders, each shareholder bank stock all net earnings over and above ti per shall be entitled to one vote on each share of stock held centum per annum on the book value of its own shares by him; except (1) that shares of its own stock held by outstanding until such assets shall amount to such 25 a national bank as sole trustee shall not be voted, and per centum of the aggregate par value of all bank stocks shares of its own stock held by a national bank and one controlled by it; or more persons as trustees may be voted by such other " (c) Notwithstanding the foregoing provisions of person or persons, as trustees, in the same manner as if this section, after five years after the enactment of the he or they were the sole trustee, and (2) shares con- Banking Act of 1933, (1) any such holding company trolled by any holding company affiliate of a national affiliate the shareholders or members of which shall be bank shall not be voted unless such holding company individually and severally liable in proportion to the affiliate shall have first obtained a voting permit as number of shares of such holding company affiliate held hereinafter provided, which permit is in force at the by them respectively, in addition to amounts invested time such shares are voted. Shareholders may vote therein, for all statutory liability imposed on such holdby proxies duly authorized in writing; but no officer, ing company affiliate by reason of its control of shares clerk, teller, or bookkeeper of such bank shall act as of stock of banks, shall be required only to establish proxy; and no shareholder whose liability is past due and maintain out of net earnings over and above 6 per and unpaid shall be allowed to vote. centum per annum on the book value of its own shares "For the purpose of this section shares shall be outstanding a reserve of readily marketable assets in an deemed to be controlled by a holding company affiliate amount of not less than 12 per centum of the aggregate if they are owned or controlled directly or indirectly by par value of bank stocks controlled by it, and (2) the such holding company affiliate, or held by any trustee assets required by this section to be possessed by such for the benefit of the shareholders or members thereof. holding company affiliate may be used by it for replace- "Any such holding company affiliate may make ment of capital in banks affiliated with it and for losses application to the Federal Reserve Board for a voting incurred in such banks, but any deficiency in such permit entitling it to cast one vote at all elections of assets resulting from such use shall be made up within directors and in deciding all questions at meetings of such period as the Federal Reserve Board may by shareholders of such bank on each share of stock con- regulation prescribe; trolled by it or authorizing the trustee or trustees "(d) Every officer, director, agent, and employee of holding the stock for its benefit or for the benefit of its every such holding company affiliate shall be subject to shareholders so to vote the same. The Federal Reserve the same penalties for false entries in any book, report, Board may, in its discretion, grant or withhold such or statement of such holding company affiliate as are permit as the public interest may require. In acting applicable to officers, directors, agents, and employees upon such application, the Board shall consider the of member banks under section 5209 of the Revised financial condition of the applicant, the general Statutes, as amended (U.S.C., title 12, sec. 592); and character of its management, and the probable effect "(e) Every such holding company affiliate shall, in of the granting of such permit upon the affairs of such its application for such voting permit, (1) show that bank, but no such permit shall be granted except upon it does not own, control, or have any interest in, and the following conditions: is not participating in the management or direction of, "(a) Every such holding company affiliate shall, in any corporation, business trust, association, or other making the application for such permit, agree (1) to similar organization formed for the purpose of, or receive, on dates identical with those fixed for the engaged principally in, the issue, flotation, underwritexamination of banks with which it is affiliated, exam- ing, public sale, or distribution, at wholesale or retail iners duly authorized to examine such banks, who shall or through syndicate participation, of stocks, bonds, make such examinations of such holding company debentures, notes, or other securities of any sort affiliate as shall be necessary to disclose fully the (hereinafter referred to as 'securities company'); (2) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

398 FEDERAL RESERVE BULLETIN JUNE 1933 agree that during the period that the permit remains SEC. 21. (a) After the expiration of one year after in force it will not acquire any ownership, control, or the date of enactment of this Act it shall be unlawful— interest in any such securities company or participate (1) For any person, firm, corporation, association, in the management or direction thereof; (3) agree that business trust, or other similar organization, engaged if, at the time of filing the application for such permit, in the business of issuing, underwriting, selling, or it owns, controls, or has an interest in, or is partici- distributing, at wholesale or retail, or through syndicate pating in the management or direction of, any such participation, stocks, bonds, debentures, notes, or securities company, it will, within five years after the other securities, to engage at the same time to any filing of such application, divest itself of its ownership, extent whatever in the business of receiving deposits control, and interest in such securities company and subject to check or to repayment upon presentation of will cease participating in the management or direction a passbook, certificate of deposit, or other evidence of thereof, and will not thereafter, during the period that debt, or upon request of the depositor; or the permit remains in force, acquire any further owner- (2) For any person, firm, corporation, association, ship, control, or interest in any such securities company business trust, or other similar organization, other than or participate in the management or direction thereof; a* financial institution or private banker subject to and (4) agree that thenceforth it will declare dividends examination and regulation under State or Federal law, only out of actual net earnings. to engage to any extent whatever in the business of " If at any time it shall appear to the Federal Reserve receiving deposits subject to check or to repayment Board that any holding company affiliate has violated upon presentation of a passbook, certificate of deposit, any of the provisions of the Banking Act of 1933 or or other evidence of debt, or upon request of the of any agreement made pursuant to this section, the depositor, unless such person, firm, corporation, as- Federal Reserve Board may, in its discretion, revoke sociation, business trust, or other similar organization any such voting permit after giving sixty days' notice shall submit to periodic examination by the Comptroller by registered mail of its intention to the holding com- of the Currency or by the Federal reserve bank of the pany affiliate and affording it an opportunity to be district and shall make and publish periodic reports of heard. Whenever the Federal Reserve Board shall its condition, exhibiting in detail its resources and have revoked any such voting permit, no national bank liabilities, such examination and reports to be made and whose stock is controlled by the holding company published at the same times and in the same manner affiliate whose permit is so revoked shall receive de- and with like effect and penalties as are now provided posits of public moneys of the United States, nor shall by law in respect of national banking associations any such national bank pay any further dividend to transacting business in the same locality. such holding company affiliate upon any shares of such (b) Whoever shall willfully violate any of the probank controlled by such holding company affiliate. visions of this section shall upon conviction be fined "Whenever the Federal Reserve Board shall have not more than $5,000 or imprisoned not more than revoked any voting permit as hereinbefore provided, five years, or both, and any officer, director, employee, the rights, privileges, and franchises of any or all or agent of any person, firm, corporation, association, national banks the stock of which is controlled by such business trust, or other similar organization who holding company affiliate shall, in the discretion of the knowlingly participates in any such violation shall be Federal Reserve Board, be subject to forfeiture in punished by a like fine or imprisonment or both. accordance with section 2 of the Federal Reserve Act, SEC. 22. The additional liability imposed upon shareas amended." holders in national banking associations by the pro- SEC. 20. After one year from the date of the enact- visions of section 5151 of the Revised Statutes, as ment of this Act, no member bank shall be affiliated amended, and section 23 of the Federal Reserve Act, as in any manner described in section 2 (b) hereof with amended (U.S.C., title 12, sees. 63 and 64), shall not any corporation, association, business trust, or other apply with respect to shares in any such association similar organization engaged principally in the issue, issued after the date of enactment of this Act. flotation, underwriting, public sale, or distribution at SEC. 23. Paragraph (c) of section 5155 of the Revised wholesale or retail or through syndicate participation Statutes, as amended (U.S.C., title 12, sec. 36), is of stocks, bonds, debentures, notes, or other securities. amended to read as follows: For every violation of this section the member bank "(c) A national banking association may, with the involved shall be subject to a penalty not exceeding approval of the Comptroller of the Currency, establish $1,000 per day for each day during which such viola- and operate new branches: (1) Within the limits of tion continues. Such penalty may be assessed by the the city, town or village in which said association is Federal Reserve Board, in its discretion, and, when so situated, if such establishment and operation are at the assessed, may be collected by the Federal reserve bank time expressly authorized to State banks by the law of by suit or otherwise. the State in question; and (2) at any point within the If any such violation shall continue for six calendar State in which said association is situated, if such months after the member bank shall have been warned establishment and operation are at the time authorized by the Federal Reserve Board to discontinue the same, to State banks by the statute law of the State in ques- (a) in the case of a national bank, all the rights, privi- tion by language specifically granting such authority leges, and franchises granted to it under the National affirmatively and not merely by implication or recogni- Bank Act may be forfeited in the manner prescribed tion, and subject to the restrictions as to location imin section 2 of the Federal Reserve Act, as amended posed by the law of the State on State banks. No (U.S.C., title 12, sees. 141, 222-225, 281-286, and such association shall establish a branch outside of the 502), or, (b) in the case of a State member bank, all city, town, or village in which it is situated unless it has of its rights and privileges of membership in the Federal a paid-in and unimpaired capital stock of not less than Reserve System may be forfeited in the manner pre- $500,000: Provided, That in States with a population scribed in section 9 of the Federal Reserve Act, as of less than one million, and which have no cities amended (U.S.C., title 12, sees. 321-332). located therein with a population exceeding one Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1933 FEDERAL RESERVE BULLETIN 399 hundred thousand, the capital shall be not less than manner as to discriminate against national banking $250,000: Provided, That in States with a populationassociations, nor shall any such consolidated association of less than one-half million, and which have no cities be removed solely because of the fact that it is a national located therein with a population exceeding fifty banking association." thousand, the capital shall not be less than $100,000." SEC. 25. The first two sentences of section 5197 of Paragraph (d) of section 5155 of the Revised Statutes, the Revised Statutes (U.S.C., title 12, sec. 85) are as amended (U.S.C., title 12, sec. 36), is amended to amended to read as follows: read as follows: "Any association may take, receive, reserve, and " (d) The aggregate capital of every national bank- charge on any loan or discount made, or upon any ing association and its branches shall at no time be notes, bills of exchange, or other evidences of debt, less than the aggregate minimum capital required by interest at the rate allowed by the laws of the State, law for the establishment of an equal number of national Territory, or District where the bank is located, or at banking associations situated in the various places a rate of 1 per centum in excess of the discount rate on where such association and its branches are situated." ninety-day commercial paper in effect at the Federal SEC. 24. (a) Sections 1 and 3 of the Act entitled reserve bank in the Federal reserve district where the "An Act to provide for the consolidation of national bank is located, whichever may be the greater, and no banking associations", approved November 7, 1918, as more, except that where by the laws of any State a amended (U.S.C., title 12, sees. 33, 34, and 34a), are different rate is limited for banks organized under State amended by striking out the words " county, city, laws, the rate so limited shall be allowed for associatown, or village" wherever they occur in each such tions organized or existing in any such State under this section, and inserting in lieu thereof the words " State, title. When no rate is fixed by the laws of the State, county, city, town, or village." or Territory, or District, the bank may take, receive, (b) Section 3 of such Act of November 7, 1918, as reserve, or charge a rate not exceeding 7 per centum, amended, is further amended by striking out the second or 1 per centum in excess of the discount rate on ninetysentence thereof and inserting in lieu thereof the follow- day commercial paper in effect at the Federal reserve ing: "The capital stock of such consolidated association bank in the Federal reserve district where the bank is shall not be less than that required under existing law located, whichever may be the greater, and such infor the organization of a national banking association terest may be taken in advance, reckoning the days for in the place in which such consolidated association is which the note, bill, or other evidence of debt has to located. Upon such a consolidation, or upon a con- run." solidation of two or more national banking associations SEC. 26. (a) The second sentence of the first paraunder section 1 of this Act, the corporate existence of graph of section 5200 of the Revised Statutes, as each of the constituent banks and national banking amended (U.S.C., title 12, sec. 84; Supp. VI, title 12, associations participating in such consolidation shall be sec. 84), is amended by inserting before the period at merged into and continued in the consolidated national the end thereof the following: "and shall include in the banking association and the consolidated association case of obligations of a corporation all obligations of all shall be deemed to be the same corporation as each of subsidiaries thereof in which such corporation owns or the constituent institutions. All the rights, franchises, controls a majority interest." and interests of each of such constituent banks and (b) The amendment made by this section shall not national banking associations in and to every species apply to such obligations of subsidiaries held by such of property, real, personal, and mixed, and choses in association on the date this section takes effect. action thereto belonging, shall be deemed to be trans- SEC. 27. Section 5211 of the Revised Statutes, as ferred to and vested in such consolidated national bank- amended (U.S.C., title 12, sec. 161; Supp. VI, title 12, ing association without any deed or other transfer; and sec. 161), is amended by adding at the end thereof the such consolidated national banking association, by following new paragraph: virtue of such consolidation and without any order or "Each national banking association shall obtain other action on the part of any court or otherwise, shall from each of its affiliates other than member banks and hold and enjoy the same and all rights of property, furnish to the Comptroller of the Currency not less franchises, and interests, including appointments, desig- than three reports during each year, in such form as nations, and nominations and all other rights and inter- the Comptroller may prescribe, verified by the oath or ests as trustee, executor, administrator, registrar of affirmation of the president or such other officer as may stocks and bonds, guardian of estates, assignee, receiver, be designated by the board of directors of such affiliate committee of estates of lunatics and in every other to verify such reports, disclosing the information herefiduciary capacity, in the same manner and to the same inafter provided for as of dates identical with those for extent as such rights, franchises, and interests were which the Comptroller shall during such year require held or enjoyed by any such constituent institution at the reports of the condition of the association. For the time of such consolidation: Provided y howevert,he purpose of this section the term 'affiliate* shall That where any such constituent institution at the include holding company affiliates as well as other time of such consolidation was acting under appoint- affiliates. Each such report of an affiliate shall be ment of any court as trustee, executor, administrator, transmitted to the Comptroller at the same time as registrar of stocks and bonds, guardian of estates, the corresponding report of the association, except assignee, receiver, committee of estates of lunatics that the Comptroller may, in his discretion, extend or in any other fiduciary capacity, the consolidated such time for good cause shown. Each such report national banking association shall be subject to removal shall contain such information as in the judgment of by a court of competent jurisdiction in the same manner the Comptroller of the Currency shall be necessary to and to the same extent as was such constituent cor- disclose fully the relations between such affiliate and poration prior to the consolidation, and nothing herein such bank and to enable the Comptroller to inform contained shall be construed to impair in any manner himself as to the effect of such relations upon the the right of any court to remove such a consolidated affairs of such bank. The reports of such affiliates national banking association and to appoint in lieu shall be published by the association under the same thereof a substitute trustee, executor, or other fiduciary, conditions as govern its own condition reports. The except that such right shall not be exercised in such a Comptroller shall also have power to call for addi- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

400 FEDERAL RESERVE BULLETIN JUNE 1933 tional reports with respect to any such affiliate when- tion is paid from assessments on banks or affiliates ever in his judgment the same are necessary in order thereof shall be without regard to the provisions of to obtain a full and complete knowledge of the condi- other laws applicable to officers or employees of the tions of the association with which it is affiliated. United States. The funds derived from such assess- Such additional reports shall be transmitted to the ments may be deposited by the Comptroller of the Comptroller of the Currency in such form as he may Currency in accordance with the provisions of section prescribe. Any such affiliated bank which fails to 5234 of the Revised Statutes (U.S.C., title 12, sec. 192) obtain and furnish any report required under this and shall not be construed to be Government funds or section shall be subject to a penalty of $100 for each appropriated monies; and the Comptroller of the Curday during which such failure continues." rency is authorized and empowered to prescribe regula- SEC. 28. (a) The first paragraph of section 5240 of tions governing the computation and assessment of the the Revised Statutes, as amended (U.S.C., title 12, sec. expenses of examinations herein provided for and the 481), is amended by inserting before the period at the collection of such assessments from the banks and/or end thereof a colon and the following proviso: "Pro- affiliates examined. If any affiliate of a national bank vided, That in making the examination of any nationalshall refuse to permit an examiner to make an examinabank the examiners shall include such an examination tion of the affiliate or shall refuse to give any informaof the affairs of all its affiliates other than member banks tion required in the course of any such examination, as shall be necessary to disclose fully the relations be- the national bank with which it is affiliated shall be tween such bank and such affiliates and the effect of subject to a penalty of not more than $100 for each such relations upon the affairs of such bank; and in the day that any such refusal shall continue. Such'penevent of the refusal to give any information required in alty may be assessed by the Comptroller of the Curthe course of the examination of any such affiliate, or in rency and collected in the same manner as expenses of the event of the refusal to permit such examination, examinations." all the rights, privileges, and franchises of the bank SEC. 29. In any case in which, in the opinion of the shall be subject to forfeiture in accordance with section Comptroller of the Currency, it would be to the advan- 2 of the Federal Reserve Act as amended (U.S.C., title tage of the depositors and unsecured creditors of any 12, sees. 141, 222-225, 281-286, and 502). The Comp- national banking association whose business has tjeen troller of the Currency shall have power, and he is here- closed, for such association to resume business upon by authorized, to publish the report of his examination the retention by the association, for a reasonable of any national banking association or affiliate which period to be prescribed by the Comptroller, of all or any shall not within one hundred and twenty days after part of its deposits, the Comptroller is authorized, in his notification of the recommendations or suggestions of discretion, to permit the association to resume business the Comptroller, based on said examination, have if depositors and unsecured creditors of the association complied with the same to his satisfaction. Ninety representing at least 75 per centum of its total deposit days' notice prior to such publicity shall be given to and unsecured credit liabilities consent in writing to the bank or affiliate." such retention of deposits. Nothing in this section (b) Section 5240 of the Revised Statutes, as amended shall be construed to affect in any manner any powers (U.S.C., title 12, sec. 481), is further amended by of the Comptroller under the provisions of law in force adding after the first paragraph thereof the following on the date of enactment of this Act with respect to new paragraph: the reorganization of national banking associations. "The examiner making the examination of any SEC. 30. Whenever, in the opinion of the Comptroller affiliate of a national bank shall have power to make a of the Currency, any director or officer of a national thorough examination of all the affairs of the affiliate, bank, or of a bank or trust company doing business in and in doing so he shall have power to administer oaths the District of Columbia, or whenever, in the opinion and to examine any of the officers, directors, employees, of a Federal reserve agent, any director or officer of a and agents thereof under oath and to make a report of State member bank in his district shall have continued his findings to the Comptroller of the Currency. The to violate any law relating to such bank or trust comexpense of examinations of such affiliates may be pany or shall have continued unsafe or unsound pracassessed by the Comptroller of the Currency upon the tices in conducting the business of such bank or trust affiliates examined in proportion to assets or resources company, after having been warned by the Comptroller held by the affiliates upon the dates of examination of of the Currency or the Federal reserve agent, as the the various affiliates. If any such affiliate shall refuse case may be, to discontinue such violations of law or to pay such expenses or shall fail to do so within sixty such unsafe or unsound practices, the Comptroller of days after the date of such assessment, then such ex- the Currency or the Federal reserve agent, as the case penses may be assessed against the affiliated national may be, may certify the facts to the Federal Reserve bank, and, when so assessed, shall be paid by such Board. In any such case the Federal Reserve Board national bank: Provided, however, That, if the affiliationmay cause notice to be served upon such director or is with two or more national banks, such expenses may officer to appear before such Board to show cause why be assessed against, and collected from, any or all of he should not be removed from office. A copy of such such national banks in such proportions as the Comp- order shall be sent to each director of the bank affected, troller of the Currency may prescribe. The examiners by registered mail. If after granting the accused diand assistant examiners making the examinations of rector or officer a reasonable opportunity to be heard, national banking associations and affiliates thereof the Federal Reserve Board finds that he has continued herein provided for and the chief examiners, reviewing to violate any law relating to such bank or trust comexaminers and other persons whose services may be pany or has continued unsafe or unsound practices in required in connection with such examinations or the conducting the business of such bank or trust company reports thereof, shall be employed by the Comptroller after having been warned by the Comptroller of the of the Currency with the approval of the Secretary of Currency or the Federal reserve agent to discontinue the Treasury; the employment and compensation of such violation of law or such unsafe or unsound pracexaminers, chief examiners, reviewing examiners, assist- tices, the Federal Reserve Board, in its discretion, may ant examiners, and of the other employees of the office order that such director or officer be removed from of the Comptroller of the Currency whose compensa- office. A copy of such order shall be served upon such Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1933 FEDERAL RESERVE BULLETIN 401 director or officer. A copy of such order shall also be System in accordance with the provisions of section 9 served upon the bank of which he is a director or of the Federal Reserve Act, as amended. officer, whereupon such director or officer shall cease SEC. 32. From and after January 1, 1934, no officer to be a director or officer of such bank: Provided, Thator director of any member bank shall be an officer, such order and thte findings of fact upon which it is director, or manager of any corporation, partnership, based shall not be made public or disclosed to anyone or unincorporated association engaged primarily in the except the director or officer involved and the directors business of purchasing, selling, or negotiating securities, of the bank involved, otherwise than in connection and no member bank shall perform the functions offa with proceedings for a violation of this section. Any correspondent bank on behalf of any such individual, partnership, corporation, or unincorporated associasuch director or officer removed from office as herein tion and no such individual, partnership, corporation, provided who thereafter participates in any manner in or unincorporated association shall perform the functhe management of such bank shall be fined not more tions of a correspondent for any member bank or hold than $5,000, or imprisoned for not more than five years, on deposit any funds on behalf of any member bank, or both, in the discretion of the court. unless in any such case there is a permit therefor issued SEC. 31. After one year from the date of enactment by the Federal Reserve Board; and the Board is of this Act, notwithstanding any other provision of authorized to issue such permit if in its judgment it is law, the board of directors, board of trustees, or other not incompatible with the public interest, and to revoke similar governing body of every national banking asso- any such permit whenever it finds after reasonable ciation and of every State bank or trust company notice and opportunity to be heard, that the public which is a member of the Federal Reserve System shall interest requires such revocation. consist of not less than five nor more than twenty-five SEC. 33. The Act entitled "An Act to supplement members; and every director, trustee, or other mem- existing laws against unlawful restraints and monopober of such governing body shall be the bona fide lies, and for other purposes", approved October 15, owner in his own right of shares of stock of such bank-1914, as amended (U.S.C., title 15, sec. 19), is hereby ing association, State bank or trust company having a amended by adding after section 8 thereof the followpar value in the aggregate of not less than $2,500, un- ing new section: less the capital of the bank shall not exceed $50,000, "SEC. 8A. That from and after the 1st day of Januin which case he must own in his own right snares ary 1934, no director, officer, or employee of any bank, having a par value in the aggregate of not less than banking association, or trust company, organized or $1,500, or unless the capital of the bank shall not ex- operating under .the laws of the United States shall be ceed $25,-000, in which case he must own in his own at the same time a director, officer, or employee of a right shares having a par value in the aggregate of not corporation (other than a mutual savings bank) or a less than $1,000. If any national banking association member of a partnership organized for any purpose violates the provisions of this section and continues whatsoever which shall make loans secured by stock or such violation after thirty days' notice from the Comp- bond collateral to any individual, association, partnertroller of the Currency, the said Comptroller may ap- ship, or corporation other than its own subsidiaries." point a receiver or conservator therefor, in accordance SEC. 34. The right to alter, amend, or repeal this with the provisions of existing law. If any State bank Act is hereby expressly reserved. If any provision of or trust company which is a member of the Federal this Act, or the application thereof to any person or Reserve System violates the provisions of this section circumstances, is held invalid, the remainder of the and continues such violation after thirty days' notice Act, and the application of such provision to other from the Federal Reserve Board, it shall be subject to persons or circumstances, shall not be affected thereby. the forfeiture of its membership in the Federal Reserve Approved June 16th, 1933, 11:45 a.m. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

402 FEDERAL RESERVE BULLETIN JUNE 1933 FEDERAL RESERVE STATISTICS, BY DISTRICTS, ETC. DISCOUNTS BY MONTHS DISCOUNTS BY WEEKS [Averages of daily figures. In millions of dollars] [In thousands of dollars] 1933. 1932 Wednesday series (1933) Federal Reserve bank Federal Reserve bank May April May May 3 May 10 May 17 May 24 May 31 Boston 15.2 17.9 30.2 Boston - - 15,993 14,818 14,519 15,338 16,152 New York.... 4 7 6 8 . . 1 8 1 5 1 5 2 . . 8 4 1 6 0 2 1 . . 7 6 N Ph e i w la d Y e o l r p k hia 9 4 1 7 , , 3 4 2 5 6 9 7 4 8 6 , , 9 1 4 1 9 8 4 7 5 8 , , 5 0 4 5 8 2 6 45 9 , , 2 7 2 5 8 2 6 44 8 , , 0 3 5 3 4 0 Philadelphia- Cleveland 68.1 59.4 56.8 Cleveland 79,106 73,056 67,044 61,539 55,025 18.8 20.7 24.4 Richmond 20,175 18,932 18,460 17,984 18,360 Richmond 20.4 25.6 31.9 Atlanta 22,142 21,699 21,262 17,938 18,247 Atlanta Chicago 16.1 18.4 33.7 Chicago - - 16, 782 15,973 15,816 15,592 15,177 3.3 4.4 13.9 St. Louis 3,693 3,263 2,953 2,850 4,955 St. Louis 7.9 9.8 12.1 Minneapolis 8,489 8,264 7,770 7,442 7,072 Minneapolis- 13.5 20.6 27.2 Kansas City 15,174 13,702 13,119 12,460 12,546 Kansas City.. 6.2 6.6 11.7 Dallas 7,554 6,190 6,253 5,801 5,165 44.8 73.2 80.3 San Francisco 72,209 37,277 39,429 40,241 36,891 Dallas. San Francisco. 338.9 424.8 486.5 Total 400,102 338,241 330,225 312,165 301,974 Total... Back figures.—See Annual Reports for 1931 (table 80), 1928 (table 72), Back figures.—Bee Annual Reports for 1931 (table 83), 1930 (table 78) and 1927 (table 55). etc. CASH HOLDINGS, DEPOSITS, NOTE CIRCULATION, AND RATIO OF CASH HOLDINGS TO LIABILITIES [Amounts in thousands of dollars] Averages of daily figures Ratio of gold and other Total gold reserves and Federal Reserve notes in cash to deposit and other cash Total deposits circulation * Federal Reserve note Federal Reserve bank liabilities combined 1933 1932 1933 1932 1933 1932 1933 1932 May April May May April May May April May May April May Boston 271,424 239,996 243,213 138,967 132,580 131,998 223,746 235,849 190,230 74.8 65.1 75.5 New York.... 1,0 2 6 3 1 1 , , 1 5 6 23 7 1, 2 0 2 5 6 3 , ,8 0 3 1 6 5 9 2 2 3 3 6 , , 0 9 1 9 6 5 1,0 1 3 2 9 8 , , 0 2 1 6 0 41, 1 02 2 9 3 , , 5 2 3 5 1 0 1, 1 0 2 4 3 6 , , 7 8 4 4 5 0 7 2 1 4 4 8 , ,1 5 6 3 8 8 7 26 9 0 1 , , 9 1 3 3 3 1 5 2 7 4 0 9 , ,9 7 8 2 2 4 6 6 0 1 . . 5 5 5 5 7 8 . . 9 8 5 63 7 . . 4 1 Philadelphia- Cleveland 2 1 7 82 6 , , 9 8 3 6 1 0 2 1 9 8 1 2 , , 7 28 4 1 5 2 9 9 3 0 , , 4 51 6 8 5 1 8 5 0 9 , ,2 3 9 4 3 2 1 7 5 2 2 , , 5 4 3 3 9 2 1 5 5 5 1, , 1 2 5 0 3 2 3 1 2 6 7 0 , ,9 7 4 7 8 4 3 1 4 7 6 7 , ,1 5 4 4 2 8 2 9 9 1 1 , , 8 7 5 5 8 7 5 7 6 5 . . 8 8 5 7 8 3 . . 5 0 6 6 5 3 . . 6 6 Richmond 126,245 121,656 120,282 59,836 54,250 50,343 131,881 143,748 115,713 65.8 61.4 72.4 Atlanta Chicago 942,876 905,174 700,354 315,727 300,496 314,447 861,235 903, 267 549,586 80.1 75.2 81.1 St. Louis 164,086 157,147 110,647 78,706 76,823 61,404 146,980 150,457 90,430 ~ 72.7 69.1 72.9 Minneapolis.. 79,334 76,422 75,909 45,848 44,738 43,201 93,445 98,650 72,788 H57.0 53.3 65.4 Kansas City- 132,442 124,648 95,092 81,820 81,960 70,340 116,264 122,265 80,763 66.9 61.0 62.9 Dallas 50,905 50,653 52,201 52,873 53,613 50,652 38,072 41,607 35,672 56.0 53.2 60.5 San Francisco. 250,405 223,756 247,252 165,424 158,998 150,977 242,022 263,839 222,649 161.5 52.9 66.2 Total... 3,770,198 3,653,329 3,188,944 2,346,110 J2, 281,210 2,250,302 3,305,073 3,535,436 2,562,152 66.9 62.8 66.3 J Includes "Federal Reserve notes of other banks" as follows: Latest month, $18,318,000; month ago, $23,624,000; year ago, $14,406,000. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

403 JUNE 1933 FEDERAL RESERVE BULLETIN EACH FEDERAL RESERVE BANK—RESOURCES AND LIABILITIES, ALSO FEDERAL RESERVE NOTE AND FEDERAL RESERVE BANK NOTE STATEMENT, MAY 31, 1933 [In thousands of dollars] Total B to o n s- 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 Chicago L S ou t. is n M o e l a i i n p s - - K C s a a it n s y - D la a s l- F c S i r s a a c n n o - RESOURCES Gold with Federal Reserve agents._ 2,813,639 216, 219 719,546 172,000210, 770134,665 93,550 797,587126,000 59,046 88,290 20,703 175,263 Gold redemption fund with U.S. Treasury- 44,353 5,055 3,013 4,492 7,019 1,246 3,059 5,027 1,342 2,089 2,798 1,295 7,918 Gold held exclusively against Fed eral Reserve notes 2,857,992 221,274 722, 559176,492 217,789135,911 96,609 802,61- 127,342 61,135 91,088 21,998183,181 Gold settlement fund with F.R. Board- 409,834 31,527 147, 596 11,432 32,523 10,257 15,997 75,900 17,270 13,952 16,798 9,189 :27,393 Gold and gold certificates held by banks.. 252,072 22,431 151,693 13,492 4,753 4,508 3,520 7,380 1,494 1,327 13,026 6,065 22,383 Total gold reserves 3,519,898 275,232 1,021,848 201,416 255,065 150,676 116,126 885,894 146,106 76,414 120,912 37, 252 232,957 Other cash i__. 286, 770 20,890 82,184 2-•4,869 23, 713 15,822 15,358 41,214 13,458 4,772 10,956 23,837 Total gold reserves and other cash._3,806,668 296,122 1,104,032226, 285 278, 778 166,498 131,484 927,108 159, 56481,186 131,868 46,949 256,794 Redemption fund—F.R. bank notes 6,242 1,000 2,500 292 250 150 1,500 100 100 50 100 200 Bills discounted: Secured by U.S. Govt. obligations... 66,01 6,103 28,195 8,482 8,562 2,478 1,24; 3,505 2,442 25' 1,662 591 2,494 Other bills discounted 235,960 10,049 40,135 35,572 46,463 15,882 17,004 11,672 2,513 6,815 10,884 4,574 34,397 Total bills discounted 301,974 16,152 44,054 55,025 18,360 18,24' 15,177 4,955 7,072 12,546 5,165 36,891 Bills bought in open market 19,862 3,114 7,186 1,273 761 429 705 2,127 375 288 353 445 2,806 United States Government securities: Bonds. 441,071 20,132 186,240 30,585 35,851 10,218 10,193 61,545 14,064 17,166 12,160 17,268 25,649 Treasury notes 656,593 36,400 258,747 51,039 67,190 19,150 19,094 77,866 25,422 18,061 21,911 13,624 48,089 Certificates and bills 791,91- 41,534 295,199 58,239 76,669 21,851 21,779 131,590 29,011 20,607 25,004 15,548 54,883 Total U.S. Govt. securities. 1,889,578 98,066 740,186 139,863 179,710 51,219 51,066 271,001 68,497 55,834 59,075 46,440128,621 Other securities 4,823 4,141 525 50 107 Total bills and securities _>_ 2,216,237 117,332 819,843 185,715 235.,,496 70,008 70,018 288,355 73,827 63,301 71,974 52,050168,318 Due from foreign banks 3,815 281 1,504 403 362 143 128 499 16 11 106 106 256 Federal Reserve notes of other banks 15,143 329 4,528 271 1,153 1,389 873 2,748 731 588 937 338 1,258 Uncollected items... _ 316,047 37,71: 90,160 23,025 28,411 26,725 9,584 38,356 12,149 9,066 16,626 10,116 14,117 Bank premises.. 54, 255 3,280 12,818 3,337 6,929 3,238 2,422 7,605 3,285 1,746 3,559 1,792 4,244 All other resources 48,020 749 24,831 3,786 1,842 2,953 5,586 1, 732 1,742 1,468 1,361 Total resources. 6,466,427456,805 2,060,216 443,114 553,221 270,954 220,245 1,268,155 250,404 157,740 226,106 112,919 446,548 Federal Reserve notes in actual circulation. 3,203,102221,624 684,951 245,101 320,384 146,632 127,629 833,956145,385 91,497114,318 36,630 234,995 F.R. bank notes in actual circulation 96,280 13,463 47,595 5,607 3,152 1,888 20,954 91 661 797 625 1,447 Deposits: Member bank —Reserve account 2,166,721142,1961,026,46:113,229 132, 52662,698 46,732 272,141 62,118 40,859 74,314 48,486144,955 Government- 72,328 1,034 41,115 476 3,288 4,153 10,761 3,518 1,607 1,814 1,189 588 2,785 Foreign bank. 7,848 542 2,905 779 735 289 260 965 252 171 215 215 520 Member bank 83,637 3,16: 5,668 6,761 13,857 6,481 2,638 30,273 1,134 4,354 262 5,559 Nonmember bank 18,059 1,433 1,612 790 1,611 257 5,618 4,357 1,591 144 646 Other deposits 45,180 5,367 9,930 197 3,975 4,099 3,514 3,133 4,122 950 310 855 8,728 Total deposits ,393, 773152,3061,087,518123,054155i,, 171 79,331 64,162 315,648 75,939 46,519 80,526 50,406 .63,193 Deferred availability items 318,082 37,432 88,294 23,261 29,385 26,709 8,303 39,195 13,617 8,172 17,277 11,764 14,673 Capital paid in 150,271 10,759 58,527 15,800 13,906 5,423 4,778 15,539 4,032 2,821 4,248 3,885 10,553 Surplus 278,599 20,460 85,058 29,242 28,294 11,616 10,544 39,497 10,186 7,019 8,263 8,719 19,701 All other liabilities.. 26,320 761 8,273 1,049 2,929 1,243 2,941 3,366 1,154 1,051 677 1,986 Total liabilities 6,466,427456,8052,060,216 443,114 553, 221 270,954 220,2451,268,155 250,404 157,740 226,106 112,919 446,548 Ratio of total gold reserves and other cash * to deposit and Federal Reserve note liabilities combined 68.0 79.: 62.3 61.5 58.6 73. 68.6 80.6 72.1 58.8 67.7 53.9 64.5 FEDERAL RESERVE NOTE STATEMENT Federal reserve notes: Issued to F.R. bank by F.R. agent- 3,436,872 234,527 760, 250 259,185 333,529 152,696.47,107 861,077 .55,270 94,163 123,195 38,965 276,908 Held by Federal Reserve bank _ 233, 770 12,903 75,299 14,084 13,145 6,064 19,478 27,121 9,885 2,666 8,877 2,335 41,913 In actual circulation 3, 203,102 221,624 684,951 245,101 !20,384 146,63: 127,629 833,956145,385 91,497114,318 36,630 234,995 Collateral held by agent as security for | notes issued to bank: Gold 2,813,639 !16,219 719,546172,000210,770134, 665 93,550 797,5871261,,000 59,046 88,290 20,703175,263 Eligible paper _. _ 190,397 18,390 49,885 21,238 32,003 11,272 12,484 11,361 3,928 5,100 6,145 5,148 13,443 United States Government securities. 480,900 68,000 .00,000 12,000 44,000 61,000 26,000 30,900 32,000 15,000 92,000 FEDERAL RESERVE BANK NOTE STATEMENT Federal Reserve bank notes: Issued to F.R. bank (outstanding) 123,134 15,680 62,274 6,280 4,840 2,740 24,220 160 740 1,000 1,800 3,400 Held by Federal Reserve bank 26,854 2,217 14, 679 673 1," 852 3,266 79 203 1,175 1,953 In actual circulation 96,280 13,463 47, 595 5,607 3,152 20,954 91 661 797 625 1,447 Collateral pledged against outstanding notes: Discounted and purchased bills __ 26,039 22,910 331 100 United States Government securities. 136,274 20,000 62,274 8,000 1,000 30,000 5,000 2,000 1,000 2,000 5,000 i "Other cash" does not include Federal Reserve notes or a bank's own Federal Reserve bank notes. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

404 FEDERAL RESERVE BULLETIN JUNE 1933 ALL MEMBER BANKS IN EACH DISTRICT RESERVES HELD, EXCESS RESERVES, AND "BORROWINGS AT FEDERAL RESERVE BANES [In millions of dollars] Averages of daily figures Reserves held Borrowings at Federa1 Reserve banks Federal Keserve district Total Excess 1933 1932 1933 1932 1933 1932 February i January February February1 January February February i January February Boston 155.8 147.2 119.6 43.9 34.2 1.6 12.1 12.3 39.9 New York - 979.5 1,230.3 811.5 81.4 294.3 12.9 67.6 57.2 178.8 Philadelphia 127.5 127.0 118.4 12.5 10.7 1.4 53.9 47.0 121.9 Cleveland 135.6 141.5 141.0 1.5 4.9 1.1 37.7 24.5 121.7 Richmond 62.5 52.8 51.8 15.1 3.9 1.3 18.2 16.2 36.4 44.8 44.2 47.6 5.0 2.5 2.3 19.2 17.4 45.0 Chicago - -- 403.2 420.6 257.7 186.6 197.6 8.9 26.1 16.0 79.8 59.3 59.1 57.5 10.1 8.0 2.4 5.7 7.9 22.0 Minneapolis 42.1 38.3 41.4 9.1 4.8 1.9 10.3 10.1 12.2 Kansas City 78.7 67.0 68.1 21.6 9.0 4.7 14.6 11.6 35.4 Dallas 52.4 46.4 49.2 11.6 5.3 3.8 4.1 4.4 14.6 San Francisco 149.7 141.7 143.6 19.0 8.5 1.6 35.9 29.8 128.5 Total 2,291.0 2,515.9 1,907. 5 417.3 583.8 43.8 305.6 254.4 836.2 i March and April data not available. Back figures.—For reserves held and borrowings at Federal Reserve banks, see Annual Reports for 1931 (tables 100 and 101), 1929 (tables 91), and 1927 (tables 89 and 90). NET DEMAND AND TIME DEPOSITS OF BANKS IN LARGER AND SMALLER CENTERS [In millions of dollars] Averages of (laily figures Member banks in larger centers (places over 15,000) Member banks in smaller centers (places under 15,000) Net demand Time Net demand Time Federal Reserve district 1933 1932 1933 1932 1933 1932 1933 1932 Febru- Janu- Febru- Febru- Janu- Febru- Febru- Janu- Febru- Febru- Janu- February^ ary ary ary i ary ary ary i ary ary ary* ary ary Boston - - - 942 951 990 664 671 711 75 76 85 137 137 146 New York 6,574 6,854 5,818 1,894 1,955 1,892 189 192 226 459 466 500 Philadelphia 822 830 836 619 628 604 133 138 153 390 391 409 Cleveland 935 960 968 982 987 1,024 128 128 148 252 253 270 Richmond 316 330 345 302 301 291 74 76 86 159 159 166 Atlanta 286 301 331- 289 296 291 53 55 67 58 59 70 Chicago - - 1,473 1,517 1,693 1,105 1,141 1,304 125 131 162 213 221 266 St. Louis 348 362 389 267 279 308 79 81 91 88 91 100 Minneapolis 172 176 206 191 188 207 87 91 116 180 183 211 Kansas City 378 381 414 208 212 217 159 164 191 110 111 124 Dallas 281 285 314 161 163 163 134 132 155 31 32 33 San Francisco . 803 819 893 1,479 1,504 1,498 80 86 110 95 98 120 Total 13,330 13,767 13,198 8,161 8,324 8,510 1,315 1,349 1,591 2,172 2,201 2,416 i March and April data not available. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1933 FEDERAL RESERVE BULLETIN 405 WEEKLY REPORTING MEMBER BANKS IN 90 LEADING CITIES PRINCIPAL RESOURCES AND LIABILITIES BY DISTRICTS, AND FOR NEW YORK CITY AND CHICAGO [In millions of dollars] Federal Reserve District City Total Bos- 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 - At t l a an- c C a h g i o - L S ou t. is n M o e l a i i n p s - - K C s a a it n s y - D l a a l s - 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 - Total loans and investments: May 3. 16,288 1,166 7,698 981 1,095 317 308 1,445 445 299 475 364 1,695 6,753 1,161 May 10- 16,318 1,165 7,743 991 1,091 317 308 1,433 444 295 476 362 1.693 6,790 1,147 May 17 16,346 1,154 7,795 993 1,092 314 308 1,431 440 294 476 359 1,690 6,847 1,146 May 24 16,329 1,155 7,730 992 1,098 313 308 1,471 439 294 479 358 1,692 6,786 1,186 May 31 16,426 1,135 7,879 1,098 315 306 1,468 419 294 479 357 1,691 6,933 1,180 Loans: May 3 8,404 664 3,845 529 494 173 178 807 220 163 210 214 907 3,291 631 May 10 8,404 656 3,858 528 491 171 180 810 220 161 210 215 904 3,305 634 May 17 8,421 641 3,900 527 487 172 180 812 216 162 210 213 901 3,352 637 May 24 8,352 645 3,833 527 486 172 181 810 215 161 210 212 900 3,287 635 May 31..._ ._ 8,485 646 3,972 524 487 171 179 810 217 160 209 213 3,427 On securities: May 3 3,698 266 1,910 273 244 61 58 406 92 50 58 66 214 1,676 343 May 10 3,715 260 1,945 271 242 59 58 401 92 49 58 67 213 1,711 335 May 17... 3,724 254 1,964 270 240 61 58 399 90 50 58 67 213 '., 735 335 May 24 _ 3,648 257 1,890 269 240 61 59 398 88 50 58 212 ,663 333 May 31.... 3,713 254 1,960 267 58 399 90 49 59 212 ,733 334 All other: May 3 4,706 1,935 256 250 112 120 401 128 113 152 148 693 ,615 288 May 10 396 1,913 257 249 112 122 409 128 112 152 148 ,594 299 May 17 4,697 387 1,936 257 247 111 122 413 126 112 152 146 ,617 302 May 24.. 4,704 388 1,943 258 246 111 122 412 127 111 152 146 ,624 302 May 31 4,772 392 2,012 257 248 111 121 411 127 111 150 147 ,694 302 Investments: May 3 7,884 502 3,853 452 601 144 130 638 225 136 150 788 3,462 530 May 10 7,914 509 3,885 463 600 146 128 623 224 134 147 789 3,485 513 May 17— _... 7,925 513 3,895 466 605 142 128 619 224 132 146 789 3,495 509 May 24 , 7,977 510 3,897 465 612 141 127 661 224 133 146 792 3,499 551 May 31 7,941 3,907 461 611 144 127 658 202 134 270 144 794 3,506 544 U.S. Government securities: May 3__ _ 4,909 314 2,511 208 392 99 85 390 123 73 160 94 460 2,353 329 May 10.... 4,908 319 2,514 217 391 100 83 374 124 71 162 93 460 2,357 313 May 17. 4,934 323 2,534 219 396 96 83 375 123 162 92 462 2,378 312 May 24 4,963 320 2,539 218 400 95 81 406 114 163 92 466 2,384 343 May 31.... 4,948 300 2,585 212 399 81 402 85 159 90 467 2,429 337 All other: May 3 2,975 188 1,342 244 209 45 248 102 105 56 328 1,109 201 May 10 3,006 190 1,371 246 209 45 249 100 104 54 329 1,128 200 May 17 2,991 190 1,361 247 209 45 244 101 104 54 327 1,117 197 May 24 3,014 190 1,358 247 212 46 255 110 106 54 326 1,115 208 May 31 2,993 189 1,322 249 212 46 256 117 111 54 327 1,077 207 Reserve with Federal Reserve banks: May 3___ _ 1,464 783 71 26 17 186 19 49 82 734 164 May 10 1,536 90 843 71 25 18 201 19 46 88 797 179 May 17 1,557 83 867 71 24 17 205 20 45 90 823 184 May 24 1,635 91 963 70 24 17 186 16 46 87 913 166 May 31. _ 1,624 106 912 71 24 17 209 20 46 87 187 Cash in vault: May 3 207 17 48 15 10 5 58 5 12 13 38 46 May 10 211 17 49 10 17 10 5 56 5 13 13 38 45 May 17 199 16 46 10 15 10 5 52 5 12 13 36 42 May 24 198 16 48 10 16 10 5 47 5 12 13 37 37 May 31 205 16 55 10 16 9 5 47 5 12 14 44 36 Net demand deposits: May 3._ 10,348 718 5,705 592 580 175 135 1,004 262 143 316 212 506 5,318 849 May 10 10,509 719 5,834 596 579 175 138 1,007 261 146 319 212 523 5,425 852 May 17 10,681 710 5,973 604 586 173 139 1,018 261 151 319 211 536 5,558 860 May 24 10, 725 711 6,022 594 588 178 137 1,029 259 152 320 210 525 5,601 872 May 31. 10,918 730 6,181 590 176 137 1,040 235 162 322 210 537 5,749 879 Time deposits: May 3— 4,330 382 1,116 262 129 127 472 158 158 124 895 731 352 May 10- 4,318 381 1,109 261 129 127 157 141 159 123 893 723 352 May 17 4,271 380 1,068 261 129 127 157 141 159 123 890 692 350 May 24 4,278 380 1,072 261 129 127 470 157 141 159 123 891 685 351 May 31 4,282 381 1,075 261 368 127 127 479 153 140 160 125 688 360 Government deposits: May 3 258 134 15 11 4 11 1 59 124 10 May 10 231 121 13 9 3 10 1 54 112 9 May 17 218 113 12 8 3 10 1 51 105 May 24 219 113 12 9 3 10 1 51 105 May 31 _ 218 113 12 9 2 10 1 51 105 Due from banks: May 3 1,217 136 121 110 58 237 108 135 90 180 May 10 1,255 127 120 107 63 262 116 129 81 204 May 17 1,328 136 114 97 72 280 125 149 81 221 May 24 1,317 134 111 87 66 287 122 143 75 225 May 31 1,333 150 123 70 282 122 140 77 222 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

406 FEDERAL RESERVE BULLETIN JUNE 1933 PRINCIPAL RESOURCES AND LIABILITIES KY DISTRICTS, AND FOR NEW YORK CITY AND CHICAGO-—Continued [In millions of dollars] Federal Reserve District City Total B to o n s- Y N o e r w k P p d h h e i l i l - a a- C l l a e n v d e- m Ri o c n h d - At t l a an- c C a h g i o - L S ou t. is n M o e l a i i n p s - - K C s a i a t n s y - Dal- F c S r is a a c n n o - Y N o e r w k c C a h g i- o Due to banks: May3._ 2,623 161 1,244 159 147 299 144 141 1,186 240 May 10 _ 2,700 158 1,304 156 152 310 145 145 1,251 253 May 17 . 2,762 153 1,354 156 154 310 150 154 1,300 254 May 24 2,754 154 1,353 152 156 313 150 153 1,300 258 May 31 _ 2,812 152 1,411 153 159 311 148 148 1,356 255 Borrowings from Federal Reserve banks: May3__ 129 May 10 80 May 17 85 May 24 78 May 31 76 RATES CHARGED CUSTOMERS BY BANKS IN PRINCIPAL CITIES OF EACH DISTRICT Prime commercial paper Lo s a to ns c k e s x e c c h u a re n d g e c b o y l lat p er r a im l e Loans secu r r e e c d e i b p y t s warehouse Interbank loans Federal Reserve bank or branch 1933 1932 1933 1932 1932 1933 1932 city May April May May April May May April May May April May Boston. 3 -5 4 -5 5 -6 New York City 4 -4} 4^-5 4 -4 4 -5 r Buffalo 5 -6 5 -6 5M6 -6 6 6 6 Philadelphia.. 5 5 -6 5 -6 5 -5 5 -6 5 -5 5 -6 Cleveland 4 -6 5 -6 5 -6 5 -6 6 3 -4 Cincinnati 6 -1 6 -7 6 5 -6 5 -6 Pittsburgh.... 6 6 -7 6 Richmond.. 5 -5} 5 -6 5H-6 5 Baltimore-- 5 -6 5 -6 5 -6 5 -6 5 -6 6 Charlotte 5 -6 5 -6 5 -6 5 -6 6 Atlanta 4H-6 5 -6 5 -1 4 -5 5 5 -6 Birmingham.. 4H8 5 -6 6 -8 6 -8 6 -8 6 -8 6 -8 6 -8 Jacksonville.. 5 -7 -7 6 -8 6 -8 6 -8 6 -8 6 -8 6 -8 Nashville 6 6 6 6 6 6 New Orleans. 5V2-6 5 -7 5 -7 5H-7 Chicago. 4 -5 4 -5 4 -5 4 -5 Detroit— St. Louis.... 4 -6 5 -6 5 -6 4^-6 5 -6 5 -6 Little Rock- 6 -7 6 -7 6 -8 6K8 6 -61 -7 6 -6 Louis ville.-. 6 5 -6 Minneapolis.. Pi 4 -4 5 -6 5 -6 5 -5 3 -5 3 -5 3 -5 Helena 7 -8 7 -8 7 -8 7 -8 7 -8 6 -7 6 -7 6 -8 6 -7 6 -7 6 -7 Kansas City 4 -6 J4 5 -6 Denver 4^-6 6 -8 6 -8 6 Oklahoma City 6 6 6 -8 6 -8 6 -8 6 Omaha 5 -5M 6 -6 6 -6 6 -6J 6 Dallas 4 -7 4 -7 5- -6 6 -7 6 -8 5H-6 IT 5 -5^ El Paso. 7 -8 7 -8 7 -8 6 -8 7 -8 7 -8 8 8 8 5 -6 Houston 5 -6 6 6 5 -6 5 -6 5 -5H San Antonio.. 5 -8 5 -8 5 -7 6 -7 6 -7 6 -7 6 -8 6 -8 5 -5H 6 San Francisco 5 -6 5 -6 5 -6 5 -6 5 -6 5H-6 5 Los Angeles 5H-6 6 -6 6 -6} 6 -6^ 6 6 -6H 6 -6J 6 Portland... _ 4K-6 6 6 6 -7 6 -7 6 -7 6 6 Salt Lake City 6 -8 6 6 7 6 -7 7 -7 6 -6K Seattle 5 -7 6 -6^ 6 -6} 6 -7 6 6 Spokane 6 -6H 6 -7 6 -7 6 6 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

JUNE 1933 FEDERAL RESERVE BULLETIN 407 OTHER BANKING AND FINANCIAL STATISTICS SHIPMENTS AND RECEIPTS OF AMERICAN MATURITY DISTRIBUTION OF BILLS AND CURRENCY TO AND FROM EUROPE SHORT-TERM SECURITIES BY SELECTED BANKS IN NEW YORK CITY [In thousands of dollars] [Paper currency only. In thousands of dollars] 1932 1933 Total W i d n a i t y 1 h s 5 - 1 d 6 a t y o s 30 3 d 1 a y t s o 60 d 6 a 1 y s to 9910 t o d a 6 ys 6 O m v o er s. Net Net Bills discounted: Month Ship- Re- ship- Ship- Re- ship- May 3 400,102 255, 564 27,458 47,382 62,530 6,793 375 ments ceipts ments ments ceipts ments May 10 333388, 224411 221155,331155 22,711 28,606 64,701 6,558 350 to from (-)or to from (-)or May 17 330,225212,662 22,485 23,570 64,943 6,338 227 Europe Europe receiptsEurope Europe receipts May 24 312,16655 195,, 69922,195 26,813 61, 411 5,889 158 (+) (+) May 31 301,974 192,007711 24,148 41, 68736,416 7,464 188 Bills bought in open market: January - __ 25 3,335 +3,310 3 6,304 +5,301 May3 144,152 73,716 60, 400 4,252 5,734 February...- 0 5,221 +5,221 105 5,589 +5,484 . May 10 112, 60775,017 28,705 3,819 5,016 March 0 8,468 +8,468 101 13,786 +13.685 May 17 77, 54365,036 4,533 2,634 5,340 April 0 4,563 +4,563 25 8,049 +8,024 May 24 42, 66233, 563 3,677 3,870 1,552 May 0 10,938 +10,938 1 12,523 +12,522 May 31 19,862 12,479 5,239 842 1,302 June . . 12 16,265 +16,253 Certificates and July 20 6,694 +6,674 bills: August ..__ 152 6,458 +6,306 May 3 826,730 52,400 86,600 164,360 56, 000 297, 392 169,978 September 36 6,603 +6,567 May 10 826,676 95,500 70,750 120,975 72,100 297, 372 169,979 October 7 5,294 +5,287 May 17 821,124 86,600 127,875 73, 238 127,956 229,976175,479 November 70 6,013 +5,943 May 24 801, 52361, 250 107,97562,638 141,796 238,226 189,638 December 245 3,986 +3,742 May 31 791,914 127', 62537, 50081, 288 111,646 243,226 190, 629 Municipal warrants: For description and back figures see BULLETIN for January 1932, May 3 5,641 5,401 51 152 pp. 7-9. May 10 5,464 5,201 51 152 May 17 5,404 5,192 127 25 May 24 5,386 5,174 127 25 UNITED STATES POSTAL SAVINGS May 31 4,823 4,738 25 10 [Balance to credit of depositors. In millions of dollars] End of month 1928 1929 1930 1931 1932 1933 January 148.9 153.5 165.1 278.4 665.6 942.5 February. 151.1 154.8 167.9 292.1 691.8 1,006.2 March 152.0 155.0 169.5 302.7 705.3 1,112. 7 April 152.2 154.3 170.2 313.8 722.1 »1,157.7 May 152.0 153.8 171.2 325.0 742.6 PI, 178.3 June 152.1 153.6 175.3 347.4 784.8 July - - 151.7 157.8 180.7 372.5 828.5 August 152.2 160.1 186.5 422.7 848.5 September 152.3 160.3 189.8 469.9 857.4 October 153.1 161.6 192.5 538.1 870.8 November 153.9 163.7 200.7 565.5 885.2 December - 153.9 164.3 245.4 605.1 900.8 Preliminary. 177784—33 6 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

408 FEDERAL RESERVE BULLETIN JUNE 1933 INDUSTRIAL PRODUCTION, BY INDUSTRIES [Index numbers of the Federal Reserve Board, 1923-25 average=100] Without seasonal Adjusted for sea- Without seasonal Adjusted for seaadjustment sonal variation adjustment sonal variation Industry Industry 1933 1932 1933 1932 1933 1932 1933 1932 Apr. Mar. Apr. Apr. Mar. Apr. Apr. Mar. Apr. Apr. Mar. Apr. Manufactures—Total __. »68 59 63 61 LEATHER AND PRODUCTS. IRON P S t i A e g e N i l r D i o n S n g T . o . E . t s EL -... 3 4 2 9 1 1 '2 2 1 5 5 8 '3 3 2 6 6 9 '3 3 2 3 2 7 Tann S U i o p n l p e g e l r e _ a l t e h a e t r her: 71 ) 78 Cattle 76 TEXTILES 78 67 65 Calf and kip. . 63 70 Cotton consumption 91 73 68 Goat and kid._ 98 99 Wool 56 46 40 4.1 Boots and shoes 105 95 107 93 97 Consumption 64 49 43 44 Machinery activity 56 52 36 CEMENT AND GLASS: Carpet and rug-loom Cement 29 45 46 activity _-. 34 29 38 () () Glass, plate 59 63 57 Silk 112 95 95 113 96 NONFERROUS METALS *—Tin Deliveries 131 107 107 132 111 108 deliveries 55 58 Loom activity 76 72 73 ) FUELS, MANUFACTURED: FOOD PRODUCTS *90 84 91 Petroleum refining _. 140 135 144 140 135 144 Slaughtering and meat pack- 92 82 102 85 G K a e s ro o s li e n n e e 1 8 7 4 9 1 7 7 8 1 1 7 8 8 5 (2 8 ) 5 (2) Hogs 95 82 107 81 Fuel oil _ 94 95 96 80 Cattle 79 74 81 90 85 92 Lubricating oil 81 75 82 () () Calves 106 92 103 98 91 94 Coke, byproduct _ 54 53 62 54 51 61 Whe S a h t e f e lo p ur 1 10 4 6 6 1 9 3 4 6 1 8 4 0 9 1 1 5 1 6 6 1 1 4 0 9 0 1 8 5 8 9 RUBBER TIRES AND TUBES 76 45 82 65 41 70 Sugar meltings 77 67 Tires, pneumatic 79 46 85 67 42 72 Inner tubes - 53 32 58 47 29 51 PAPER AND PRINTING *83 93 Wood pulp and paper »77 86 TOBACCO PRODUCTS 107 94 100 116 99 109 Newsprint 62 61 59 71 Cigars 58 47 62 61 51 66 B W o r o a k p p p i a n p g e r paper 84 9 8 5 3 Cigarettes 1 6 3 5 9 1 7 2 4 5 12 72 7 1 7 5 2 3 1 8 3 1 2 1 7 3 9 9 Fine paper 79 Minerals—Total- W Bo o x o d b o p a u rd lp, mechanical. Bituminous coal 4 4 6 5 5 6 1 3 4 8 6 5 5 4 5 4 5 7 1 7 8 5 1 5 Wood pulp, chemical— 83 Anthracite coal 108 120 112 108 122 112 Paper boxes 149 111 138 149 110 138 Petroleum, crude 47 47 45 45 44 43 Newsprint consumption 101 92 114 95 106 Zinc.,— 45 46 45 45 45 45 Lead 36 48 40 44 40 LUMBER 23 29 24 22 27 Silver TRANSPORTATION EQUIPMENT: Automobiles 34 45 27 35 Locomotives 1 7 1 8 Shipbuilding 112 111 115 144 p Preliminary. ' Revised. 1 Includes also lead and zinc; see "Minerals." a Without seasonal adjustment. NOTE.—For description see BULLETIN for February and March 1927. For latest revisions see BULLETIN for March 1932, pp. 194-196. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1933 FEDERAL RESERVE BULLETIN 409 FACTORY EMPLOYMENT AND PAY ROLLS, BY INDUSTRIES [Index numbers of the Federal Reserve Board; adjusted to Census of Manufactures through 1927,1923-25 average=100] Factory employment Factory pay rolls Without seasonal adjustment Adjusted for seasonal variationWithout seasonal adjustment Industry 1933 1932 1933 1932 1933 1932 April March April April March April April March April Total 57.8 56.7 64.0 57.7 56.6 64.3 38.6 36.9 48.7 IRON AND STEEL AND PRODUCTS. 50.6 49.1 59.8 50.0 48.3 59.0 24.4 22.4 32.1 ,St68l works Rtifl rolling rpills 54.1 52.7 63.0 53.0 51.6 61.7 25.4 23.2 32.0 Hardware 48.1 47.9 57.0 48.9 47.2 57.8 22.4 22.1 33.3 Structural-iron work. _ __ 44.2 43.3 59.4 45.2 44.4 60.8 21.8 20.2 38.1 Heating apparatus 42.9 39.3 49.3 42.6 39.6 48.9 24.0 21.0 29.6 Steam fittings 37.6 33.7 43.4 37.2 33.3 42.9 20.6 18.3 27.1 Stoves _ ._ ._ 47.9 44.4 54.7 47.6 45.4 54.4 27.2 23.6 32.0 Cast-iron pipe _ 26.8 22.1 39.9 26.4 22.2 39.4 14.2 12.6 26.2 MACHINERY . 43.1 42.8 57.0 42.6 42.2 56.4 24.4 24.0 39.1 Foundry and machine-shop products... _ _ 41.6 41.2 52.1 40.9 40.5 51.3 21.0 20.8 33.0 Machine tools 33.4 34.0 50.3 33.1 33.4 49.9 18.4 18.9 33.4 Agricultural implements 36.2 37.9 47.8 34.1 35.3 44.9 25.9 26.5 39.3 Electrical machinery _ 48.4 48.1 69.7 48.4 48.0 69.7 33.4 32.1 54.4 TEXTILES AND PRODUCTS.. _.. 69,7 67.7 67.9 68.5 65.4 66.7 45.2 41.3 49.4 A Fabrics 69.6 68.1 67.3 69.2 66.9 66.8 43.0 40.8 46.9 Cotton goods 73.4 72.0 69.4 73.4 70.6 69.3 44.4 42.8 47.2 Woolen and worsted manufactures _. 53.9 51.9 49.0 54.4 51.7 49.4 31.4 28.7 32.0 Woolen and worsted goods 55.8 53.4 48.1 56.7 53.4 48.9 33.4 30.0 31.8 Carpets and rugs 43.8 44.2 53.8 42.7 42.7 52.4 22.6 22.9 32.5 Hosiery and knit goods. . _ . 83.1 81.3 83.4 81.3 79.6 81.7 56.3 53.2 65.6 Silk manufactures 53.2 52.8 54.4 52.4 51.4 53.6 32.1 32.1 37.4 Dyeing and finishing textiles 86.4 85.2 91.3 83.9 83.1 88.6 64.0 59.2 71.5 B. Wearing apparel . _ _ 69.8 66.7 69.4 66.8 61.9 66.4 49.8 42.4 54.6 Clothing, men's 51.2 51.6 50.8 52.9 50.6 52.4 28.3 31.1 31.6 Shirts and collars 67.2 66.2 65.3 67.2 65.2 65.3 41.7 41.3 43.8 Clothing, women's 96.2 87.4 99.3 88.4 77.1 91.3 74.9 57.6 84.5 Millinery 73.7 69.2 66.4 62.9 61.0 56.7 60.1 40.3 58.8 FOOD AND PRODUCTS 78.2 76.9 80.6 81.2 78.4 83.6 62.6 59.8 72.8 Baking . _ _ . . . _ 81.4 80.4 87.3 82.7 81.0 88.7 65.4 64.2 77.6 Slaughtering and meat packing 78.9 78.2 80.3 82.3 79.8 83.7 65.4 61.0 73.8 C onfectionery 76.6 73.3 71.1 84.2 76.3 78.2 51.4 47.4 59.9 Ice cream. 64.8 63.4 72.8 67.4 71.1 75.7 52.3 51.0 71.3 Flour _ 74.6 72.2 75.9 78.1 72.4 79.4 61.2 55.8 66.6 Sugar refining, cane - - - - 73.0 72.6 72.4 71.7 72.0 71.1 59.4 59.4 61.5 PAPER AND PRINTING . _ _ _ _ 78.4 78.7 85.3 78.8 78.5 85.7 62.4 63.3 79.7 Printing, book and job 71.7 72.6 84.6 72.2 71.7 85.2 56.0 57.9 77.0 Printing, newspapers and periodicals 93.6 92.9 97.4 93.3 92.7 97.1 81.0 81.8 99.1 Paper and pulp _ . .. 75.4 75.3 79.3 75.4 75.4 79.4 49.7 49.2 62.3 Paper boxes 69.1 71.0 74.7 71.1 71.9 76.8 53.3 53.5 66.1 LUMBER AND PRODUCTS _ _ _ 32.8 31.8 39.6 33.3 32.5 40.2 15.6 14.3 23.2 Lumber, sawmills . _ 28.4 27.4 34.1 28.7 28.3 34.3 13.1 12.3 19.3 Lumber, millwork 31.4 29.4 39.5 31.2 29.5 39.3 16.2 13.9 24.2 Furniture _ _ _ 45.9 45.7 55.4 47.7 46.3 57.6 21.0 19.0 31.2 TRANSPORTATION EQUIPMENT 41.4 42.5 53.0 40.1 41.7 51.1 30.6 29.2 43.9 Car building and repairing 38.5 40.3 45.5 38.3 40.5 45.2 28.6 29.9 37.4 44.4 43.9 58.9 41.5 41.9 55.1 32.3 27.0 47.1 Shipbuilding 49.8 54.1 85.2 47.0 50.9 80.3 37.4 40.3 81.8 LEATHER AND MANUFACTURES 75.0 76.6 78.8 76.4 75.7 80.2 45.9 47.1 55.7 Boots and shoes. _ _ _ 77.7 78.8 81.3 79.3 78.0 83.0 46.0 46.2 55.7 Leather _ _ 63.9 67.8 68.3 64.4 66.2 68.8 45.4 50.3 55.7 CEMENT, CLAY, AND GLASS PRODUCTS 40.5 38.1 48.8 40.2 38.9 48.4 22.0 20.6 31.7 Clay products _ . _ _ . _ _ 32.5 31.2 43.1 32.2 32.1 42.7 14.2 13.8 23.6 Brick, tile, and terra cotta 22.7 20.7 33.0 22.5 22.4 32.7 8.3 7.4 15.4 Pottery 59.4 59.8 70.9 58.5 58.6 69.8 29.9 30.4 45.0 Glass. _ . - _ . . 58.6 55.6 62.1 57.8 55.3 61.3 39.9 36.7 49.2 Cement 36.7 31.0 44.8 37.3 33.1 45.6 18.3 16.4 29.9 NONFERROUS METAL PRODUCTS 44.4 42.3 53.9 43.4 41.0 52.7 27.4 25.1 38.3 Stamped and enameled ware 24.0 21.2 34.4 22.9 19.9 32.8 16.5 14.6 27.0 Brass, bronze, and copper __. _ _,__ 51.4 49.4 60.5 50.5 48.1 59.4 30.6 28.1 41.6 CHEMICALS AND PRODUCTS 82.4 78.2 82.4 77.6 75.6 78.5 60.8 60.4 68.5 Chemicals and drugs 78.8 80.1 81.9 78.1 79.1 81.2 58.4 59.8 67.2 Petroleum refining - _ _ _ _ 75.9 75.8* 78.6 75.9 76.6 78.6 63.8 64.5 71.2 Fertilizers _ _ . 129.1 74.2 99.0 80.0 49.8 61.3 66.4 40.7 65.1 RUBBER PRODUCTS 57.1 57.0 66.6 56.7 56.6 66.1 34.2 31.1 48.3 Automobile tires and tubes _ _ _ » . 60.6 60.4 69.3 59.6 59.7 68.1 35.2 31.7 50.1 Rubber boots and shoes _ 46.7 46.4 58.7 47.9 47.3 60.2 30.2 28.6 41.0 TOBACCO MANUFACTURES 56.3 57.6 68.4 57.5 57.8 70.1 35.9 36.0 49.3 Cigars and cigarettes _ 54.9 56.1 68.3 56.2 56.7 69.9 34.0 34.3 48.0 Chewing and smoking tobacco, snuff 66.9 69.7 70.2 67.5 66.4 70.8 51.8 50.2 60.0 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

410 FEDERAL RESERVE BULLETIN JUNE 1933 WHOLESALE PRICES, BY GROUPS OF COMMODITIES [Index of Bureau of Labor Statistics. 1926=100] Other commodities All com- Farm Year and month m ti o e d s i- p u r c o t d s - Foods Total H p l i r e d o a e d t s h u e a c n r ts d p T ro e d x u ti c le ts m F li u a g e t h e l t r i a i n a n g l d s a p n M r d o e d m t u a e c ls t t a s lm B a u t i e ld ri i a n l g s c C a d h l r s e u m a g n s i d - in f H u g r o n g u i o s s o h e d - - s l M an i e sc o e u l s - 1928__ 96.7 105.9 101.0 92.9 121.4 95.5 84.3 97.0 94.1 95.6 95.1 85.4 1929- 95.3 104.9 99.9 91.6 109.1 90.4 83.0 100.5 95.4 94.2 94.3 82.6 1930 86.4 88.3 90.5 85.2 100.0 80.3 78.5 92.1 89.9 89.1 92.7 77.7 1931 _ 73.0 64.8 74.6 75.0 86.1 66.3 67.5 84.5 79.2 79.3 84.9 69.8 1932 64.8 48.2 61.0 70.2 72.9 54.9 70.3 80.2 71.4 73.5 75.1 64.4 1932—April 65.5 49.2 61.0 70.9 75.0 56.1 70.2 80.3 72.5 74.4 76.3 64.7 May 64.4 46.0 59.3 70.4 72.5 54.3 70.7 80.1 71.5 73.6 74.8 64.4 June 63.9 45.7 58.8 70.1 70.8 52.7 71.6 79.9 70.8 73.1 74.7 64.2 July 64.5 47.9 60.9 69.7 68.6 51.5 72.3 79.2 69.7 73.0 74.0 64.3 August 65.2 49.1 61.8 70.1 69.7 52.7 72.1 80.1 69.6 73.3 73.6 64.6 September 65.3 49.1 61.8 70.4 72.2 55.6 70.8 80.1 70.5 72.9 73.7 64.7 October. __ 64.4 46.9 60.5 70.2 72.8 55.0 71.1 80.3 70.7 72.7 73.7 64.1 November 63.9 46.7 60.6 69.8 71.4 53.9 71.4 79.6 70.7 72.4 73.7 63.7 December. 62.6 44.1 58.3 69.0 69.6 53.0 69.3 79.4 70.8 72.3 73.6 63 4 1933—January... 61.0 42.6 55.8 67.3 68.9 51.9 66.0 78.2 70.1 71.6 72.9 61.2 February, 59.8 40.9 53.7 66.0 68.0 51.2 63.6 77.4 69.8 71.3 72.3 59.2 March 60.2 42.8 54.6 65.8 68.1 51.3 62.9 77.2 70.3 71.2 72.2 58.9 April 60.4 44.5 56.1 65.3 69.4 51.8 61.5 76.9 70.2 71.4 71.5 57.8 1932 1933 Subgroups Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar Apr. FARM PRODUCTS: Grains - 46.1 43.5 44.5 42.6 37.7 36.7 38.2 37.4 34.4 33.2 31.7 32.9 32.7 36.0 44.8 Livestock and poultry 50.3 51.4 49.2 44.4 46.7 54.1 52.8 51.2 45.0 41.9 38.7 37.8 40.1 43.0 41.0 Other farm products. 52.7 52.1 51.2 49.6 48.2 48.4 50.8 52.1 52.1 53.9 51.3 48.7 44.2 45.3 46.7 FOODS: Butter, cheese, and milk 64.1 64.2 61.6 59.6 57.4 58.2 60.2 60.5 62.3 59.5 55.2 52.4 50.9 53.1 Cereal products 69.6 68.3 68.2 68.1 66.8 65.7 66.0 65.8 64.1 62.7 61.7 60.9 60.4 62.7 65.9 Fruits and vegetables 61.8 62.3 62.3 61.5 62.4 59.7 55.6 52.5 52.2 52.4 52.8 53.0 52.4 54.3 57.8 Meats 59.5 61.4 59.8 56.5 56.0 62.0 61.9 60.9 56.4 53.7 49.4 49.5 50.2 50.5 50.3 Other foods 59.4 57.1 55.8 54.9 55.4 58.5 62.1 64.6 65.4 67.7 66.1 60.1 54.1 55.8 56.6 HIDES AND LEATHER PRODUCTS: Boots and shoes 88.5 88.5 88.4 88.4 87.5 84.4 84.4 84.4 84.6 84.2 83.8 83.3 83.3 83.2 83.2 Hides and skins 46.1 44.7 40.8 35.7 32.5 33.5 39.3 48.2 49.6 46.1 41.7 43.0 40.9 41.4 45.8 Leather 76.5 73.4 67.2 60.6 58.7 60.0 60.0 63.2 64.1 61.9 59.2 57.1 55.3 55.6 57.2 Other leather products 98.0 97.9 96.4 83.7 82.3 81.5 81.9 81.9 81.9 78.2 77.9 77.9 77.2 TEXTILE PRODUCTS: Clothing _ 70.6 69.0 68.7 68.2 67.4 66.0 66.0 67.3 62.5 62.2 62.5 61.9 61.2 61.3 61.4 Cotton goods 56.4 56.2 55.1 52.9 51.0 50.0 52.6 57.9 56.2 53.6 51.7 50.1 49.1 50.0 50.7 Knit goods 55.8 54.9 51.9 50.5 49.6 47.8 48.5 50.4 50.9 51.0 49.3 48.4 48.3 47.1 47.2 Silk and rayon 36.5 33.5 31.3 29.1 27.5 26.2 29.5 32.6 30.8 29.5 29.3 27.0 25.6 25.5 26.3 Woolen and worsted goods.. 63.1 62.7 59.7 58.3 55.0 53.6 53.4 56.7 56.5 55. 3 54.2 53.4 53.2 53.2 53.3 Other textile products 69.7 69.5 68.2 67.2 66.7 66.5 67.4 68.6 67.7 67.1 66.6 66.3 66.2 66.7 67.5 FUEL AND LIGHTING MATERIALS: Anthracite coal 94.8 89.9 85.7 85.6 85.3 84.5 86.0 87.7 88.7 88.8 88.7 88.7 88.7 88.3 81.4 Bituminous coal 84.3 83.5 82.7 82.0 81.8 81.6 81.3 81.1 81.1 80.4 80.2 79.8 79.4 79.3 78.1 Coke.. 80.4 80.4 79.8 77.1 76.9 76.3 76.7 76.7 76.7 75.6 75.3 75.3 75.2 75.2 75.2 Electricity . 104.8 104.4 103.5 106.1 105.5 105.8 104.4 103.4 104.6 103.1 104.1 103.2 102.9 100.5 Gas... 98.0 97.5 99.1 103.0 106.3 108.3 107.0 107.6 104.4 100.0 96.5 96.7 96.6 96.6 Petroleum products 38.6 45.5 47.2 48.2 49.7 46.7 47.4 48.2 45.0 38.7 34.3 33.1 32.5 METALS AND METAL PRODUCTS: Agricultural implements 85.1 85.0 85.0 84.9 84.9 84.9 84.9 84.9 84.7 84.6 84.5 84.5 83.1 83.1 83.1 Iron and steel 79.3 79.7 80.1 80.0 79.8 77.2 78.7 79.7 80.4 79.4 78.8 78.5 77.3 76.4 75.7 Motor vehicles. 95.3 95.3 93.8 93.8 93.8 95.3 95.3 92.7 92.7 92.7 93.0 91.3 90.9 90.9 90.4 Nonferrous metals __ 52.7 50.5 49.3 48.3 47.5 47.0 48.5 51.6 50.7 49.1 48.3 46.4 46.2 47.9 49.2 BUILDING MATERIALS: Brick and tile 79.3 79.3 78.4 77.4 76.1 75.9 75.2 75.4 75.3 75.4 75.1 74.9 75.1 74.9 75.0 Cement. ,. 75.3 75.0 75.0 75.0 77.1 77.3 79.0 79.0 79.0 79.0 81.1 81.2 81.8 81.8 81.8 Lumber 62.9 61.5 60.0 59.5 57.6 56.9 55.5 56.3 56.6 56.6 56.5 55.9 56.4 57.8 57.9 Paint materials 75.1 75.4 74.7 73.9 73.3 66.8 67.2 68.2 68.3 68.5 68.1 68.1 68.0 68.4 68.9 Plumbing and heating 65.8 64.4 64.4 64.4 66.7 67.1 67.1 66.8 67.5 67.5 67.5 62.8 59.4 59.4 59.4 Structural steel 77.9 79.7 81.7 81.7 81.7 81.7 81.7 81.7 81.7 81.7 81.7 81.7 81.7 81.7 81.7 Other building materials 80.2 80.6 80.2 78.2 77.6 77.9 78.3 79.9 80.0 80.1 80.1 79.4 78.5 78.4 77.9 • CHEMICALS AND DRUGS: Chemicals 80.8 80.9 79.7 79.1 78.6 78.9 79.7 79.8 79.8 79.7 79.7 79.3 79.0 79.3 79.5 Drugs and Pharmaceuticals _ 60.1 59.7 58.9 58.7 58.3 57.6 57.0 56.6 55.9 55.0 54.7 54.9 54.8 54.8 54.6 Fertilizer materials 69.8 68.6 70.1 69.4 68.0 66.4 63.6 63.4 63.5 63.1 62.3 61.5 61.9 62.9 Mixed fertilizers . 73.7 73.2 71.1 69.0 69.0 68.3 66.9 66.5 65.6 65.6 62.7 62.4 60.1 60.0 HOUSEFURNISHING GOODS: Furnishings 75.9 75.4 75.4 75.5 75.4 75.1 74.8 74.7 74.7 74.7 74.7 73.5 72.9 72.9 71.7 Furniture 79.5 79.1 77.4 74.1 74.0 73.0 72.6 72.7 72.8 72.7 72.7 72.3 71.9 71.8 71.5 MISCELLANEOUS: Auto tires and tubes 39.5 39.2 39.2 39.2 40.1 40.1 42.7 44.6 44.6 44.6 44.6 42.6 41.3 37.4 Cattle feed 48.2 52.4 53.4 45.9 42.1 42.2 47.4 45.9 42.7 40.8 37.1 38.2 40.6 47.3 49.5 Paper and pulp 76.7 76.8 76.8 76.5 76.2 76.2 76.3 75.5 73.4 73.4 73.0 72.0 72.1 72.2 70.6 Rubber, crude 8.6 7.2 6.6 6.7 5.8 6.1 7.9 8.2 7.3 7.2 6.8 6.5 6.1 6.3 7.4 Other miscellaneous 84.4 84.5 84.5 84.6 84.6 84.5 84.2 83.2 82.1 81.5 81.3 76.8 73.3 72.6 72.7 Back figures.—For indexes of groups see BULLETIN for March 1932, p. 199; indexes of subgroups available at Bureau of Labor Statistics. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1933 FEDERAL RESERVE BULLETIN 411 CONSTRUCTION CONTRACTS AWARDED, BY TYPES OF CONSTRUCTION [Value of contracts in millions of dollars; figures for 37 States east of the Rocky Mountains, as reported by the F. W. Dodge Corporation] Public works Total Residential Factories Commercial and public Educational All other utilities Month 1932 1933 1932 1933 1932 1933 1932 1933 1932 1933 1932 1933 1932 1933 January 84.8 83.4 27.5 12.0 3.4 4.3 9.1 5.8 24.1 42.7 4.4 1.4 16.3 17.3 February 89 0 52 7 24.4 11.8 4.4 2.8 10.1 7.6 28.3 17.2 10.8 2.2 11.0 11.0 March «. 112.2 60.0 33.2 16.0 4.5 6.4 10.6 7.2 29.9 17.6 9.8 1.3 24.2 11.5 April 121.7 56.6 28.9 19.1 4.5 6.2 12.9 6.6 47.3 13.6 10.7 1.1 17.5 9.9 May 146 2 25 6 3 0 12 2 61.7 6 5 37 2 June 113 1 23.1 2.1 13.0 50.1 7.2 17.6 July 128.8 19.7 3.5 8.3 60.0 6.4 30.8 August 134.0 20.8 3.3 18.4 64.2 5.5 21.9 September 127.5 22.8 6.3 8.8 68.7 7.4 13.5 October 107 1 21 9 3 2 7.0 58.5 3.6 13.1 November 105.3 19.2 1.9 6.7 54.2 3.4 19.9 December 81.2 13.0 3.3 5.7 43.3 6.7 9.2 Year 1,351.2 280.1 43.5 122.7 590.3 82.3 232.3 CONSTRUCTION CONTRACTS AWARDED, BY BANK DEBITS DISTRICTS [Debits to individual accounts. In millions 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] 1933 1932 Number 1933 1932 of centers Apr. Feb.* Apr. Federal Reserve district Apr. Mar Apr. New York City. 1 12,012 12,036 15,558 Outside New York City 140 10,612 10,401 14,365 Boston 6,011 6,016 11,950 New York 14,453 15,868 21,414 Federal Reserve districts: Philadelphia 4,316 3,289 12,129 Boston 11 1,230 1,136 1,735 Cleveland 4,944 6,192 10,927 New York 7 12, 512 12,491 16,232 Richmond 6,376 4,945 12,897 Philadelphia 10 1,033 1,150 1,363 Atlanta 2,695 3,959 6,678 Cleveland 13 1,003 1,103 1,400 Chicago 6,919 7,909 16, 245 Richmond 7 390 383 533 St. Louis 3,266 4, 890 9,502 Atlanta 15 506 537 746 Minneapolis 3,519 815 7,689 Chicago 21 2,496 2,364 3,628 Kansas City 2,027 3,165 5,768 St. Louis— 5 540 508 705 Dallas 2,047 2,909 6,507 Minneapolis 9 402 313 443 Kansas City 15 605 554 758 Total (11 districts) 56, 573 59,959 121, 705 Dallas 10 334 330 392 San Francisco . 18 1,573 1,568 1,987 COMMERCIAL FAILURES, BY DISTRICTS Total 141 22,624 22,437 29,923 [Amounts in thousands of dollars; figures reported by Dun and 1 Complete data for March 1933 not available. Bradstreet] ]STumber Liabilities Federal Reserve district 1933 1932 1933 1932 Apr. Mar. Apr. Apr. Mar. Apr. Boston 196 179 265 5,602 3,820 6,383 New York 475 518 707 16, 493 14,853 30,903 Philadelphia 118 96 173 5,081 3,901 10,568 Cleveland _ 182 160 212 6,008 6,529 8,027 Richmond 98 84 143 1,449 1,524 8,036 Atlanta 73 92 123 1,401 1,983 2,080 Chicago 258 280 432 7,982 6,617 14, 821 St. Louis 68 111 151 996 2,696 5,600 Minneapolis 64 61 65 578 1,409 1,046 Kansas City 121 79 140 1,479 1,359 4,171 Dallas 65 58 82 852 871 1,733 San Francisco 203 230 323 3,174 2,938 7,700 Total 1,921 1,948 2,816 51,097 48, 500 101,069 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