Federal Reserve Bulletin, 1934-07

FEDERAL RESERVE BULLETIN JULY 1934 ISSUED BY THE FEDERAL RESERVE BOARD AT WASHINGTON Recent Banking Legislation Annual Report of the Netherlands Bank UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON: 1934 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BOARD Ex officio members: EUGENE R. BLACK, Governor. CHARLES S. HAMLIN. HENRY MORGENTHAU, Jr., 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. H. WARNER MARTIN, Assistant to the Governor. E. A. GOLDENWEISER, Director t Division of Research and Statistics. CHESTER MORRILL, Secretary. J. C. NOELL, Assistant Secretary. CARL E. PARRY, Assistant Director, Division[of Research and Statistics. L. P. BETHEA, Assistant Secretary. S. R. CARPENTER, Assistant Secretary. E. L. SMEAD, Chief, Division of Bank Operations. WALTER WYATT, General Counsel. J. R. VAN FOSSEN, Assistant Chief, Division of Bank GEORGE B. VEST, Assistant Counsel. Operations. LEO H. PAULGER, Chief, Division of Examinations. O. E. FOULK, Fiscal Agent. FRANK J. DRINNEN, Federal Reserve Examiner. JOSEPHINE E. LALLY, Deputy Fiscal Agent. 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, Vice President. District no. 4 (CLEVELAND) H. C. MCELDOWNEY. District no. 5 (RICHMOND) HOWARD BRUCE. District no. 6 (ATLANTA) H. LANE YOUNG. District no. 7 (CHICAGO) SOLOMON A. SMITH. 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) M. A. ARNOLD. WALTER LICHTENSTEIN, Secretary 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. WTillett. New York J. H. Case G. L. Harrison W. R. Burgess C. H. Coe.1 J. E. Crane J. W. Jones.i W. S. Logan W. B. Matteson.i L. R. Rounds J. M. Rice.i L.F. Sailer Allan Sproul.* R. M. Gidney. L. W. Knoke.i Philadelphia __ R. L. Austin _ G. W. Norris W. H. Hutt C. A. Mcllhenny. ~W T TlaT7i« 1 C. A. Mcllhenny L. E. Donaldson.i W. G. McCreedy.» Cleveland _ L. B. Williams E. R. Fancher M. J. Fleming H. F. Strater. Richmond. W. W. Hoxton -.. G. J. Seay C. A. Peple G. H. Keesee. R. H. Broaddus J. S. Walden, Jr.» Atlanta O^car Newton W. S. Johns « . H. F. Connifl M. W. Bell. W. S. McLarin, Jr.i Chicago _. E. M. Stevens G J. Schaller C. R. McKay W. H. Snyder.« H. P. Preston W. 0. Bachman.i J. H. Dillard 0. J. Netterstrom.i A. T. Sihier.i E. A. Delaney.1 A. L. Olson.* St. Louis J. S. Wood W. McC. Martin 0. M. Attebery _ S. F. Gilmore.1 J. G. McConkey A. H. Haill.i F. N. Hall.i G. 0. Hollocher.1 0. C. PhiUips.J Minneapolis J. N. Peyton W. B. Geery Harry Yaeger. _ H. I. Ziemer. TT T 7ipmpr F. 0. Dunlop.8 Kansas City M. L. McClure G. H. Hamilton C. A. Worthington J. W. Helm. T W TTOITTI Dallas C.C.Walsh _ B. A. McKinney R.R.Gilbert Fred Harris. R. B. Coleman W. 0. Ford.i San Francisco J U Calkins W A Day W M Hale Ira Clerk _ 1 Assistant deputy governor. « Controller. « Acting governor. • Assistant to the governor. MANAGING DIRECTORS OF BRANCHES OF FEDERAL RESERVE BANKS Federal Reserve Bank of— Managing director Federal Reserve Bank of— Managing director , New York: Minneapolis: Buffalo branch... R. M. O'Hara. Helena branch R. E. Towle. : Cleveland: Kansas City: Cincinnati branch C. F. McCombs. Omaha branch L. H. Earhart. Pittsburgh branch J. C. Nevin. Denver branch J. E. Olson. i Richmond: Oklahoma City branch.. C. E. Daniel. Baltimore branch Hugh Leach. Dallas: Charlotte branch W. T. Clements. El Paso branch.- J. L. Hermann. i 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. i Detroit branch R. H. Buss 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 Page Review of the month—Recent banking legislation 429 Act relating to direct loans for industrial purposes 430 Silver Purchase Act of 1934 435 Annual report of the Netherlands Bank 463 Cuban currency legislation 468 National summary of business conditions 447 Financial, industrial, and commercial statistics: Reserve bank credit, gold stock, money in circulation, etc 448-451 Member and nonmember bank credit: All banks in the United States 454 All member banks 452, 453, 496, 497 Weekly reporting member banks in leading cities 455, 498 Brokers' loans 455 Acceptances and commercial paper 456 Discount rates and money rates 457 Treasury finance 458 Reconstruction Finance Corporation—Loans, subscriptions, and allocations 459 Security prices, bond yields, and security issues 460 Production, employment, car loadings, and commodity prices 461, 500-504 Merchandise exports and imports 462 Department stores—Indexes of sales and stocks 462 Freight-car loadings, by classes 462 Financial statistics for foreign countries: Gold reserves of central banks and governments 472 Gold production 473 Gold movements 473-475 Government note issues and reserves 476 Bank for International Settlements 476 Central banks 477-479 Commercial banks 480 Discount rates of central banks 481 Money rates 481 Foreign exchange rates 482 Price movements: Wholesale prices 483 Retail food prices and cost of living 484 Security prices 484 Law department: Rulings of the Federal Reserve Board: Discounts for individuals, partnerships, and corporations 485 Permits to member banks relating to participation in underwriting and dealing in municipal and other securities 485 Securities company within provisions of sections 20 and 32 of Banking Act of 1933 485 Membership in Federal Reserve System of trust companies doing substantially no banking business 486 Act extending for 1 year the temporary plan for deposit insurance, etc ' 486 Act amending Federal Reserve Act relative to loans made by national banks secured by real estate-- 488 Regulation S—Discounts, purchases, loans, and commitments by Federal Reserve banks to provide working capital for established industrial or commercial businesses 488 Federal Reserve statistics by districts, etc.: Banking and financial statistics 493-499 Industrial and commercial statistics 500-505 IV Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN VOL. 20 JULY 1934 No. 7 REVIEW OF THE MONTH with the chairmen and governors of the 12 Federal Reserve banks and has been approved In the field of currency and banking the most by that conference. important developments in June related to new "The need for this character of loans has Federal legislation, including an act to provide become increasingly apparent in recent months. for loans by Federal Reserve banks and by the Many small industrial establishments have Reconstruction Finance Corporation to insuffered severe capital losses during the depresdustrial and commercial enterprises, the Silver sion and are now short of working capital. A Purchase Act of 1934, an act providing for the survey made by the Federal Reserve Board extension for a year of the temporary plan for through the Reserve banks and the chambers deposit insurance, the National Housing Act, of commerce showed that this condition is and the Securities Exchange Act of 1934. widespread and is not being met by existing The text of the Securities Exchange Act of facilities. Small industries find it difficult at 1934 appeared in the BULLETIN for June, and present to obtain their requirements of working the other acts and important documents relatcapital through the capital market, while coming to them are printed in this issue, with the mercial banks and other financial institutions, exception of the National Housing Act with in many cases, are hesitant about undertaking respect to which only one section that amends on their single responsibility the risks involved the Federal Reserve Act is reproduced. in making relatively long-time loans for work- By an act of Congress approved by the ing capital purposes. President on June 19, 1934, the Federal Reserve Loans to banks were authorized to make "Recognizing the need of these industrial and comme^ ^ans to supply working capital commercial businesses for additional working enterprises to industrial and commercial capital to enable them to continue or resume enterprises within the prescribed limitations. normal operations and to maintain employment The text of this act is printed below and regu- or provide additional employment, Congress lations issued by the Board under the law are has granted the Federal Reserve banks broad printed on pages 430-434. powers to enable them to provide such working The Federal Reserve Board held conferences capital, either through the medium of other with the chairmen and governors of the 12 banks, trust companies, and other financing Reserve banks, and on June 28, 1934, the Board institutions or, in exceptional circumstances, directly to such commercial and industrial busiissued the following statement to the press: nesses. It is believed that the facilities thus "The Federal Reserve Board has prepared, afforded will aid in the recovery of business, the approved, and issues herewith Regulation S, increase of employment, and the general betterseries of 1934, which deals with loans by Fedment of conditions throughout the country. eral Reserve banks for industrial purposes. The regulation analyzes the provisions of the "The Federal Reserve banks are authorized law and prescribes the procedure to be followed to have outstanding such loans in an aggregate in applying for such loans. The regulation has amount not exceeding approximately $280,been considered at a conference of the Board 000,000, but additional loans may be made out 429 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

430 FEDERAL RESERVE BULLETIN JULY 1934 of funds received through repayment of out- advisory committees of industrialists, to canstanding loans, so that the aggregate amount of vass the situations in their districts with a view credit to be extended under this authority may to determining where loans for working capital be several times as large as the initial amount. purposes can be made in the public interest to These loans are to be made by the Federal industrial and commercial enterprises. Reserve banks in their own districts, and ap- "It was agreed that these loans would be plications for such loans should be directed to made chiefly to small and medium-size enterthese banks. The Federal Reserve Board in its prises, which have the greatest need for such regulation gives authority to all Federal Re- assistance, to whose needs primary consideraserve banks to make such loans without refer- tion was given by the Congress, and in the imring them to Washington for approval. provement of whose condition the Reserve Sys- "In making these loans the Federal Reserve tem under this law is primarily concerned." banks will have the aid of advisory committees consisting of five active industrialists resident in the district. Progress has been made in the [PUBLIC—No. 417—73D CONGRESS] selection of such committees, and the banks are [S. 3487] now ready to consider such loans. AN ACT "The Reserve banks are authorized to make Relating to direct loans for industrial purposes by Federal Reserve banks, loans or advances or commitments for such and for other purposes loans or advances to financing institutions, Be it enacted by the Senate and House of Representatives which in turn advance the funds for working of the United States of America in Congress assembled, That the Federal Reserve Act, as amended, is amended capital purposes to established industrial or by adding after section 13a thereof a new section commercial enterprises. Maturity of the loans reading as follows: "SEC. 13b. (a) In exceptional circumstances, when must not exceed 5 years and the financing in- it appears to the satisfaction of a Federal Reserve stitutions must assume at least 20 percent of bank that an established industrial or commercial business located in its district is unable to obtain the risk of any loss that may occur. requisite financial assistance on a reasonable basis from "In exceptional circumstances the Federal the usual sources, the Federal Reserve bank, pursuant to authority granted by the Federal Reserve Board, Reserve banks may also make direct advances may make loans to, or purchase obligations of, such to industrial or commercial undertakings that business, or may make commitments with respect thereto, on a reasonable and sound basis, for the purpose are not able to obtain the required funds from of providing it with working capital, but no obligation usual banking sources on reasonable terms. It shall be acquired or commitment made hereunder with a maturity exceeding five years. is expected, however, that the Federal Reserve "(b) Each Federal Reserve bank shall also have banks will not compete with local banks, but power to discount for, or purchase from, any bank, trust company, mortgage company, credit corporation rather will assist and cooperate with them in for industry, or other financing institution operating meeting local requirements for working capital. in its district, obligations having maturities not exceeding five years, entered into for the purpose of obtaining The Federal Reserve Board and the Federal working capital for any such established industrial or Reserve banks are confident that the banks of commercial business; to make loans or advances direct to any such financing institution on the security the country will join with the System in this of such obligations; and to make commitments with regard to such discount or purchase of obligations or endeavor to hasten economic recovery. with respect to such loans or advances on the security "At the recent conference the governors and thereof, including commitments made in advance of the actual undertaking of such obligations. Each such chairmen of the 12 Reserve banks all reported financing institution shall obligate itself to the satisthat there was need for this class of loans in faction of the Federal Reserve bank for at least 20 per centum of any loss which may be sustained by such their districts and undertook to set up promptly bank upon any of the obligations acquired from such the necessary machinery for considering appli- financing institution, the existence and amount of any such loss to be determined in accordance with cations for such loans and to carry out vigorregulations of the Federal Reserve Board: Provided, ously the purposes of this additional power of That in lieu of such obligation against loss any such financing institution may advance at least 20 per the System to serve commerce and industry. centum of such working capital for any established The Reserve banks will undertake, through the industrial or commercial business without obligating Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1934 FEDERAL RESERVE BULLETIN 431 itself to the Federal Reserve bank against loss on the it will continue such payments until the final liquidaamount advanced by the Federal Reserve bank: Pro- tion of said stock by the Federal Deposit Insurance vided, however, That such advances by the financing Corporation. The sum so paid to each Federal Reserve institution and the Federal Reserve bank shall be bank by the Secretary of the Treasury shall become a considered as one advance, and repayment shall be part of the surplus fund of such Federal Reserve bank made pro rata under such regulations as the Federal within the meaning of this section. All amounts Reserve Board may prescribe. required to be expended by the Secretary of the Treas- " (c) The aggregate amount of loans, advances, and ury in order to carry out the provisions of this section commitments of the Federal Reserve banks outstanding shall be paid out of the miscellaneous receipts of the under this section at any one time, plus the amount of Treasury created by the increment resulting from the purchases and discounts under this section held at reduction of the weight of the gold dollar under the the same time, shall not exceed the combined surplus President's proclamation of January 31, 1934; and of the Federal Reserve banks as of July 1, 1934, plus there is hereby appropriated, out of such receipts, such all amounts paid to the Fe( eral Reserve banks by the sum as shall be required for such purpose." Secretary of the Treasury under subsection (e) of this SEC. 2. Section 5202 of the Revised Statutes of the section, and all operations of the Federal Reserve United States, as amended, is hereby amended by addbanks under this section shall be subject to such ing at the end thereof the following new paragraph: regulations as the Federal Reserve Boara may prescribe. "Tenth. Liabilities incurred under the provisions "(d) For the purpose of aiding the Federal Reserve of section 13b of the Federal Reserve Act." banks in carrying out the provisions of this section, SEC. 3. Section 22 of the Federal Reserve Act is there is hereby established in each Federal Reserve amended by adding at the end thereof the following district an industrial advisory committee, to be new paragraphs: appointed by the Federal Reserve bank subject to the "(h) Whoever makes any material statement, approval and regulations of the Federal Reserve Board, knowing it to be false, or whoever willfully overvalues and to be composed of not less than three nor more than any security, for the purpose of influencing in any way five members as determined by the Federal Reserve the action of a Federal Reserve bank upon any applica- Board. Each member of such committee shall be tion, commitment, advance, discount, purchase, or actively engaged in some industrial pursuit within the loan, or any extension thereof by renewal, deferment Federal Reserve district in which the committee is of action, or otherwise, or the acceptance, release, or established, and each such member shall serve without substitution of security therefor, shall be punished by a compensation but shall be entitled to receive from the fine of not more than $5,000 or by imprisonment for Federal Reserve bank of such district his necessary not more than two years, or both. expenses while engaged in the business of the com- "(i) Whoever, being connected in any capacity with mittee, or a per diem allowance in lieu thereof to be a Federal Reserve bank (1) embezzles, abstracts, purfixed by the Federal Reserve Board. Each applica- loins, or willfully misapplies any moneys, funds, securtion for any such loan, advance, purchase, discount, or ities, or other things of value, whether belonging to it commitment shall be submitted to the appropriate or pledged or otherwise entrusted to it, or (2) with committee and, after an examination by it of the intent to defraud any Federal Reserve bank, or any business with respect to which the application is made, other body politic or corporate, or any individual, or the application shall be transmitted to the Federal to deceive any officer, auditor, or examiner, makes any Reserve bank, together with the recommendation of false entry in any book, report, or statement of or to a the committee. Federal Reserve bank, or, without being duly author- "(e) In order to enable the Federal Reserve banks ized, draws any order or issues, puts forth, or assigns to make the loans, discounts, advances, purchases, and any note, debenture, bond, or other obligation, or draft, commitments provided for in this section, the Secretary mortgage, judgment, or decree shall be punished by a of the Treasury, upon the date this section takes effect, fine of not more than $10,000 or by imprisonment for is authorized, under such rules and regulations as he not more than five years, or both. shall prescribe, to pay to each Federal Reserve bank "(j) The provisions of sections 112, 113, 114, 115, not to exceed such portion of the sum of $139,299,557 116, and 117 of the Criminal Code of the United States, as may be represented by the par value of the holdings insofar as applicable, are extended to apply to conof each Federal Reserve bank of Federal Deposit tracts or agreements of any Federal Reserve bank Insurance Corporation stock, upon the execution by under this Act, which, for the purposes hereof, shall be each Federal Reserve bank of its agreement (to be held to include advances, loans, discounts, purchase, endorsed on the certificate of such stock) to hold such and repurchase agreements; extensions and renewals stock unencumbered and to pay to the United States thereof; and acceptances, releases, and substitutions of all dividends, all payments on liquidation, and all other security therefor. proceeds of such stock, for which dividends, payments, " (k) It shall be unlawful for any person to stipulate and proceeds the United States shall be secured by such for or give or receive, or consent or agree to give or stock itself up to the total amount paid to each Federal receive, any fee, commission, bonus, or thing of value Reserve bank by the Secretary of the Treasury under for procuring or endeavoring to procure fron^ any this section. Each Federal Reserve bank, in addition, Federal Reserve bank any advance, loan, or extension shall agree that, in the event such dividends, payments, of credit or discount or purchase of any obligation or and other proceeds in any calendar year do not aggre- commitment with respect thereto, either directly from gate 2 per centum of the total payment made by the such Federal Reserve bank or indirectly through any Secretary of the Treasury, under this section, it will financing institution unless such fee, commission, pay to the United States in such year such further bonus, or thing of value and all material facts with amount, if any, up to 2 per centum of the said total respect to the arrangement or understanding therefor payment, as shall be covered by the net earnings of shall be disclosed in writing in the application or request the bank for that year derived from the use of the sum for such advance, loan, extension of credit, discount, so paid by the Secretary of the Treasury, and that for purchase, or commitment. Any violation of the prosaid amount so due the United States shall have a first visions of this paragraph shall be punishable by imclaim against such earnings and stock, and further that prisonment for not more than one year or by a fine of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

432 FEDERAL RESERVE BULLETIN JULY 1934 not exceeding $5,000, or both. If a director, officer, " (b) Books or records of account in whatever form, employee, or agent of any Federal Reserve bank shall and minutes (or portions thereof) of proceedings, of knowingly violate this paragraph, he shall be held liable any such executive department or corporation, or copies in his personal and individual capacity for any loss or of such books, records, or minutes authenticated under damage sustained by such Federal Reserve bank in the seal of such department or corporation, shall be consequence of such violation." admissible as evidence of any act, transaction, occur- SEC. 4. Section 10 of the Federal Reserve Act, as rence, or event as a memorandum of which such books, amended, is further amended by changing the period records, or minutes wTere kept or made. at the end of the third paragraph thereof to a comma " (c) The seal of any such executive department or and inserting thereafter the following: "and such corporation shall be judicially noticed." assessments may include amounts sufficient to provide (b) Section 4 of the Reconstruction Finance Corporafor the acquisition by the Board in its own name of tion Act, as amended (U.S.p., Supp. VII, title 15, sec. such site or building in the District of Columbia as in 604), is amended by inserting immediately before the its judgment alone shall be necessary for the purpose of semicolon following the words "corporate seal" a providing suitable and adequate quarters for the per- comma and the words "which shall be judicially formance of its functions. After approving such plans, noticed". estimates, and specifications as it shall have caused to SEC. 7. Section 1001 of the Revised Statutes, as be prepared., the Board may, notwithstanding any amended (U.S.C., title 28, sec. 870), is amended by other provision of law, cause to be constructed on the inserting immediately after the word "Government" site so acquired by it a building suitable and adequate the following: "or any corporation all the stock of in its judgment for its purposes and proceed to take all which is beneficially owned by the United States, such steps as it may deem necessary or appropriate in either directly or indirectly". connection with the construction, equipment, and fur- SEC. 8. The Reconstruction Finance Corporation nishing of such building. The Board may maintain, Act, as amended (U.S.C., Supp. VII, title 15, ch. 14), enlarge, or remodel any building so acquired or con- is further amended by inserting after section 5a thereof structed and shall have sole control of such building the following new section: and space therein." "SEC. 5b. Notwithstanding any other provision of SEC. 5. That the Reconstruction Finance Corpora- law— tion Act, as amended (U.S.C., Supp. VII, title 15, ch. " (1) The maturity of drafts or bills of exchange which 14), is amended by inserting before section 6 thereof the may be accepted by the Corporation under section 5a following new section: of this Act, and the period for which the Corporation "SEC. 5d. For the purpose of maintaining and in- may make loans or advances under sections 201 (c) and creasing the employment of labor, when credit at pre- 201 (d) of the Emergency Relief and Construction Act vailing bank rates for the character of loans applied of 1932, as amended, and under section 5 of this Act, for is not otherwise available at banks, the Corporation may be five years, or any shorter period, from February is authorized and empowered to make loans to any 1, 1935: Provided, That in respect of loans or advances industrial or commercial business, which shall include under such section 5 to railroads, railways, and receivers the fishing industry, established prior to January 1, or trustees thereof, the Corporation may require as a 1934. Such loans shall in the opinion of the board of condition of making any such loan or advance for a directors of the Corporation be adequately secured, period longer than three years that such arrangements may be made directly, or in cooperation with banks be made for the reduction or amortization of the inor other lending institutions, or by the purchase of debtedness of the railroad or railway, either in whole or participations, shall have maturities not to exceed five in part, as may be approved by the Corporation after years, shall be made only when deemed to offer reason- the prior approval of the Interstate Commerce Comable assurance of continued or increased employment mission. of labor, shall be made only when, in the opinion of the " (2) The Corporation may at any time, or from time board of directors of the Corporation, the borrower is to time, extend, or consent to the extension of, the time solvent, shall not exceed $300,000,000 in aggregate of payment of any loan or advance made by it, through amount at any one time outstanding, and shall be sub- renewal, substitution of new obligations, or otherwise, ject to such terms, conditions, and restrictions as the but the time for such payment shall not be extended board of directors of the Corporation may determine. beyond five years from February 1, 1935: Provided, The aggregate amount of loans to any one borrower That the time of payment of loans or advances to railunder this section shall not exceed $500,000. roads, railways, and receivers or trustees thereof, shall "The power to make loans given herein shall termi- not be so extended except with the prior approval of the nate on January 31, 1935, or on such earlier date as Interstate Commerce Commission, and, in the case of a the President shall by proclamation fix; but no pro- loan to a railroad or railway, with the prior certification vision of law terminating any of the functions of the of the Interstate Commerce Commission that the rail- Corporation shall be construed to prohibit disburse- road or railway is not in need of financial reorganization ment of funds on loans and commitments, or agree- in the public interest. ments to make loans, made under this section prior to "(3) In connection with the reorganization under January 31,1935, or such earlier date." section 77 of the Federal Bankruptcy Act, approved SEC. 6. (a) Section 882 of the Revised Statutes July 1, 1898, as amended, or with receivership pro- (U.S.C., title 28, sec. 661) is amended to read as follows: ceedings in a court or courts, of any railroad or railway "SEC. 882. (a) Copies of any books, records, papers, indebted to the Corporation, or of any railroad or railor other documents in any of the executive depart- way the receivers or trustees of which are indebted to ments, or of any corporation all of the stock of which is the Corporation, the Corporation may, with the prior beneficially owned by the United States, either directly approval of the Interstate Commerce Commission, ador indirectly, shall be admitted in evidence equally just or compromise its claim against such railroad or with the originals thereof, when duly authenticated railway, or any such receiver or trustee, by accepting, in under the seal of such department or corporation, re- connection with any such reorganization or receivership spectively. proceedings and in exchange for securities or any part Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1934 FEDERAL RESERVE BULLETIN 433 thereof then held, new securities which may have such project, (b) the debt charges on its outstanding obligaterms as to interest, maturity, and otherwise as may tions, and (c) provisions for such reasonable reserves be approved by the Corporation, or part cash and part as may be approved by the Corporation; and". new securities so approved: Provided, That any such (4) By adding at the end thereof the following new adjustment or compromise shall not be made on less paragraph: favorable terms than those provided in the reorganiza- "When any loan is authorized pursuant to the protion of the railroad or railway for holders of claims of the visions of this section and it shall then or thereafter same class and rank as the claim of the Corporation." appear that repairs and necessary extensions or SEC. 9. Section 301 of the National Industrial Re- improvements to the project of such district, political covery Act (U.S.C., Supp. VII, title 40, sec. 412) is subdivision, company, or association are necessary or amended by inserting before the period at the end there- desirable for the proper functioning of its project or of a colon and the following: " Provided further, That for the further assurance of its ability to repay such in connection with any loan or contract or any commit- loan, and if it shall also appear that such repairs and ment to make a loan entered into by the Reconstruction necessary extensions or improvements are not designed Finance Corporation prior to June 26, 1933, to aid in to bring new lands into production, the Corporation, financing part or all of the construction cost of projects within the limitation as to total amount provided in pursuant to section 201 (a) (1) of the Emergency Relief this section, may make an additional loan or loans to and Construction Act of 1932, as amended, the Cor- such district, political subdivision, company, or associaporation may make such further loans and contracts tion for such purpose or purposes. When application for the completion of any such project, or for improve- therefor shall have been made by any such district, ments, additions, extensions, or equipment which are political subdivision, company, or association any loan necessary or desirable for the proper functioning of any authorized by this section may be made either to such such project, or which will materially increase the assur- district, political subdivision, company, or association ance that the borrower will be able to repay the entire or to the holders or representatives of the holders of investment of the Corporation in such project, includ- their existing indebtedness, and such loans may be ing such improvements, additions, extensions, or equip- made upon promissory notes collateraled by the obligament; and the Corporation may disburse funds to the tions of such district, political subdivision, company, borrower thereunder, at any time prior to January 23, or association or through the purchase of securities 1939, notwithstanding any provisions to the contrary issued or to be issued by such district, political subcontained in this section or in section 201 (h) of the division, company, or associaton.1" Emergency Relief and Construction Act of 1932, as SEC. 12. (a) Sections 2 and 3 of the Act entitled amended: Provided further•, That any such further loans "An Act to authorize the Reconstruction Finance shall be made subject to all the terms and conditions Corporation to subscribe for preferred stock and purset forth in the Emergency Relief and Construction chase the capital notes of insurance companies, and for Act of 1932, as amended, with respect to the loans authorized by section 201 (a) (1) of said Act.'7 other purposes", approved June 10, 1933, as amended (U.S.C., Supp. VII, title 15, sees. 605f and 605g), are SEC. 10. Notwithstanding any limitations on its amended to read as follows: power, the Reconstruction Finance Corporation, upon "SEC. 2. In the event that any such insurance comrequest of any borrower under section 201 (a) of the pany shall be incorporated under the laws of any State Emergency Relief and Construction Act of 1932, as which does not permit it to issue preferred stock, exempt amended, may adjust the maturities of any obligations from assessment or additional liability, or if such laws of such borrower now held by it, or hereafter acquired permit such issue of preferred stock only by unanimous by it under lawful commitments, to such periods as may consent of stockholders, or upon notice of more than in the discretion of the Reconstruction Finance Corpo- twenty days, or if the insurance company is a mutual ration be proper, but such adjustment shall not extend organization without capital stock, the Reconstruction any such maturity to more than twenty years from the Finance Corporation is authorized for the purposes of advancing of the sum or sums evidenced thereby. this Act to purchase the legally issued capital notes of SEC. 11. Section 36 of the Emergency Farm Mort- such insurance company, or, if the company is a mutual gage Act of 1933, as amended (U.S.C., Supp. VII, title organization without capital stock, such other form or 43, sec. 403), is amended as follows: forms of indebtedness as the laws of the State under (1) By striking from the first sentence thereof which such company is organized permit, or to make "$50,000,000 to or for the benefit of drainage districts, loans secured by such notes or such other form or forms levee districts, levee and drainage districts, irrigation of indebtedness as collateral, which may be subdistricts, and similar districts," and inserting in lieu ordinated in whole or in part or to any degree to claims thereof " $125,000,000 to or for the benefit of drainage of other creditors. districts, levee districts, levee and drainage districts, "SEC. 3. The Reconstruction Finance Corporation irrigation districts, and similar districts, mutual nonshall not subscribe for or purchase any preferred stock profit companies and incorporated water users' associaor capital notes of any applicant insurance company, tions". (1) until the applicant shows to the satisfaction of the (2) By striking from the second sentence thereof Corporation that it has unimpaired capital, or that it "district or political subdivision" and inserting in lieu will furnish new capital which will be subordinate to the thereof "district, political subdivision, company, or preferred stock or capital notes to be subscribed for or association". purchased by the Corporation, equal to the amount of (3) By amending clause (4) thereof to read as follows: said preferred stock or capital notes so subscribed for "(4) the borrower shall agree, insofar as it may or purchased by the Corporation: Provided, That the lawfully do so, that so long as any part of such loan shall Corporation may make loans upon said preferred stock remain^ unpaid the borrower will in each year apply to or capital notes, or other form or forms of indebtedness the repayment of such loan or to the purchase or repermitted by the laws of the State under which said demption of the obligations issued to evidence such applicant is organized, if, in its opinion, such loans will loan, an amount equal to the amount by which the be adequately secured by said stock or capital notes or assessments, taxes, and other charges collected by it exceed (a) the cost of operation and maintenance of the 3 So in original. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

434 FEDERAL RESERVE BULLETIN JULY 1934 other form or forms of indebtedness and/or such other On July 5 the Federal Reserve Board issued forms of security"! as the Corporation may require, (2) if at the time of such subscription, purchase, or Statement the following statement relaloan any officer, director, or'employee of the applicant on Securities tive to section 7 of the Securiis receiving total compensation in a sum in excess of Exchange Act j Exchange Act of 1934: $17,500 per annum from the applicant and/or any of tes its affiliates, and (3) unless at such time, the insurance "At its recent conference with the chairmen company agrees to the satisfaction of the Corporation that while anyjpart of the preferred stock, notes, bonds, and governors of the Federal Reserve banks or debentures (or, in the case of a mutual insurance the Federal Reserve Board considered the new company, other form or forms of indebtedness permitted by the laws of the State under which the company is responsibilities placed upon the System by the organized) of such insurance company is held fc>y the Securities Exchange Act of 1934. This act Corporation, the insurance company, except with the consent of the Corporation, will not (a) increase the gives the Federal Reserve Board authority to compensation received by any of its officers, directors, determine the margins to be required by brokers or employees from the insurance company and/or any of its affiliates, and in no event increase any such and dealers in extending credit to their cuscompensation to an amount exceeding $17,500 per tomers, and also empowers the Board, within annum, or (b) retire any of its stock, notes, bonds, certain limitations, to prescribe rules and regudebentures, or other forms of indebtedness issued for capital purposes. For the purposes of this section, lations, including margin requirements, for the term "compensation" includes any salary, fee, loans extended by other persons, including bonus, commission, or other payment direct or indirect, in money or otherwise for personal services." banks, for the purpose of purchasing or carry- (b) Section 11 of such Act of June 10, 1933, as ing securities registered on national securities amended (U.S.C., Supp. VII, title 15, sec. 605i), is amended by adding at the end thereof the following exchanges. new sentence: "As used in this section and in sections "Margin requirements do not become effec- 1, 2, and 3 of this Act, the term 'State' means any State, Territory, or possession of the United States, tive before October 1, 1934, and the Board's the Canal Zone, and the District of Columbia." regulations on the subject will not be issued for SEC. 13. The Reconstruction Finance Corporation is authorized and empowered to make loans upon full several weeks. and adequate security, based on mineral acreage, to "In the case of brokers the law lays down a recognized and established incorporated managing agencies of farmers' cooperative mineral rights pools not standard of margins, which shall constitute the engaged in drilling or mining operations, said loans to basis of the Board's regulations, although the be made for the purpose of defraying the cost of organizing such pools. Board is given authority to prescribe lower SEC. 14. The Reconstruction Finance Corporation is requirements, if it deems it necessary or approauthorized and empowered to make loans upon adequate security, based on mineral acreage to recognized and priate for the accommodation of commerce established incorporated agencies, individuals, and and industry, with due regard to the general partnerships engaged in the business of mining, milling, or smelting of ores. credit situation in the country, and to prescribe SEC. 15. The Corporation is authorized and emhigher margins if it deems it necessary or appropowered to make loans under section 5 of the Reconstruction Finance Corporation Act, as amended, to any priate in order to prevent the excessive use of person, association, or corporation organized under the credit to finance transactions in securities. In laws of any State, the District of Columbia, Alaska, Hawaii, or Puerto Rico, for the purpose of financing the the case of other lenders on securities, including production, storage, handling, packing, processing, banks, no standard is specifically laid down in carrying, and/or orderly marketing of fish of American fisheries and/or products thereof upon the same terms the law, the margins to be prescribed being left and conditions, and subject to the same limitations, to the Board's discretion. as are applicable in case of loans made under said section 5, as amended. "The fundamental principle by which the SEC. 16. The Reconstruction Finance Corporation is Board is to be guided in determining margin hereby authorized and empowered to make loans at any time prior to January 31, 1935, out of the funds of the requirements and in formulating its regulations Corporation upon full and adequate security, to publicis stated in the law. The Board is directed to school districts or other similar public-school authorities organized pursuant to State law, for the purpose of enforce its new powers for the purpose of prepayment of teachers' salaries due prior to June 1, 1934: venting the excessive use of credit for the pur- Provided, That the agregate 1 amount of such loans at any time outstanding shall not exceed $75,000,000. chase or carrying of securities. This principle "^Approved, June 19, 1934. is in line with the provisions of the Banking Act 1 So in original. of 1933, which in several sections places special Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1934 FEDERAL RESERVE BULLETIN 435 responsibility on the Federal Reserve banks certain other exemptions. In general, the law, and the Federal Reserve Board in connection insofar as it applies to control over banks, is with excessive use of bank credit in the security intended to prevent the banks from being used markets. The law imposes upon the Federal for the purpose of circumventing the margin Reserve Board no duties in connection with the requirements prescribed for loans extended by supervision of the stock exchanges or the pre- brokers to their customers, and to prevent vention of undesirable practices among mem- undue expansion of bank credit employed in bers of such exchanges. Responsibility for the securities markets. these matters is placed upon the Securities and " General banking practices in relation to Exchange Commission. The Federal Reserve loans for industrial, agricultural, or commercial Board's duty under this act relates chiefly to purposes are not affected by this act." the determination of margins to be required on An act of Congress authorizing the Secretary security loans, a power to be exercised as a part of the Treasury to purchase silver and to issue of the Federal Reserve System's general credit silver certificates was approved policy of controlling undue credit expansion in Silver by the President on June 19, the security markets. Purchase Act 1934, and is printed below. "Insofar as banks are concerned, the Federal of 1934 p _ The resident had sent t0 Con Reserve Board's authority under this act gress on May 22, 1934, the relates to loans made for the purpose of purfollowing message recommending the enactment chasing or carrying securities registered on of legislation declaring it to be the policy of the national securities exchanges. It does not United States to increase the amount of silver apply, therefore, to loans made solely for indusin our monetary stocks with the ultimate trial, agricultural, or commercial purposes, objective of having and maintaining one-fourth regardless of the question whether these loans of their monetary value in silver and threeare secured or unsecured, and, if secured, refourths in gold: gardless of the character of the collateral. The determining factor is the purpose of the loan To the Congress of the United States: and not the nature of the security offered. If On January 11, 1934, I recommended to the Congress legislation which was promptly ena loan is collateraled by stocks or other equity acted under the title, "The Gold Eeserve Act securities and is made for the purpose of purof 1934." This act vested in the United States chasing or carrying securities registered on a Government the custody and control of our national securities exchange, it comes under stocks of gold as a, reserve for our paper currency and as a medium of settling international this section of the act; if it is made for any balances. It set up a stabilization fund for the other purpose, then it is exempt. The Board's control of foreign exchange in the interests of power under this section, furthermore, does our people, and certain amendments were added not apply to loans on exempted securities, to facilitate the acquisition of silver. which are defined by the law as including among As stated in my message to the Congress, this legislation was recommended as a step in imother securities obligations of the United States, proving our financial and monetary system. or of any State or political subdivision, and Its enactment has laid a foundation on which such other securities as the Securities and we are organizing a currency system that will be Exchange Commission may declare to be both sound and adequate. It is a long step exempted securities. The power of the Board forward, but only a step. is further limited by exempting bank loans on As a part of the larger objective, some things have been clear. One is that we should move securities other than equity securities, which forward as rapidly as conditions permit in means in practice that it is not applicable to broadening the metallic base of our monetary loans on bonds, except bonds such as those system and in stabilizing the purchasing and having conversion privileges, and there are debt-paying power of our money on a more Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

436 FEDERAL RESERVE BULLETIN JULY 1934 equitable level. Another is that we should not necessary if a permanent measure of value, neglect the value of an increased use of silver in including both gold and silver, is eventually to improving our monetary system. Since 1929 be made a world standard. To arrive at that that has been obvious. point, we must seek every possibility for world Some measures for making a greater use of agreement, although it may turn out that this silver in the public interest are appropriate for Nation will ultimately have to take such indeindependent action by us. On others, inter- pendent action on this phase of the matter as national cooperation should be sought. its interests require. Of the former class is that of increasing the The success of the London Conference in proportion of silver in the abundant metallic consummating an international agreement on reserves back of our paper currency. This silver, which has now been ratified by all the policy was initiated by the proclamation of governments concerned, makes such further December 21, 1933, bringing our current agreement worth seeking. The ebb and flow of domestic production of silver into the Treasury, values in almost all parts of the world have as well as placing this Nation among the first to created many points of pressure for readjustcarry out the agreement on silver which we ments of internal and international standards. sought and secured at the London Conference. At no time since the efforts of this Nation to We have since acquired other silver in the secure international agreement on silver began interest of stabilization of foreign exchange and in 1878 have conditions been more favorable the development of a broader metallic base for for making progress along this line. our currency. We seek to remedy a malad- Accordingly, I have begun to confer with justment of our currency. some of our neighbors in regard to the use of In further aid of this policy, it would be both silver and gold, preferably on a coordihelpful to have legislation broadening the nated basis, as a standard of monetary value. authority for the further acquisition and mone- Such an agreement would constitute an imtary use of silver. portant step forward toward a monetary unit of I, therefore, recommend legislation at the value more equitable and stable in its purchaspresent session declaring it to be the policy of ing and debt-paying power. the United States to increase the amount of FRANKLIN D. ROOSEVELT. silver in our monetary stocks with the ultimate THE WHITE HOUSE, May 22, 1934. objective of having and maintaining one-fourth of their monetary value in silver and threefourths in gold. The Executive authority should be author- SILVER PURCHASE ACT OF 1934 ized and directed to make the purchases of silver necessary to attain this ultimate objec- [PUBLIC—No. 438—73D CONGRESS] tive. [H.R. 9745] The authority to purchase present accumulations of silver in this country should be AN ACT limited to purchases at not in excess of 50 To authorize the Secretary of the Treasury to purchase silver, issue silver cents per ounce. certificates, and for other purposes The Executive authority should be enabled, Be it enacted by the Senate and House of Representashould circumstances require, to take over tives of the United States of America in Congress aspresent surpluses of silver in this country not sembled, That the short title of this Act shall be the required for industrial uses on payment of just " Silver Purchase Act of 1934." SEC. 2. It is hereby declared to be the policy of the compensation, and to regulate imports, exports, United States that the proportion of silver to gold in and other dealings in monetary silver. the monetary stocks of the United States should be There should be a tax of at least 50 percent increased, with the ultimate objective of having and on the profits accruing from dealing in silver. maintaining, one fourth of the monetary value of such stocks in silver. We can proceed with this program of increas- SEC. 3. Whenever and so long as the proportion of ing our store of silver for use as a part of the silver in the stocks of gold and silver of the United metallic reserves for our paper currency with- States is less than one-fourth of the monetary value out seriously disturbing adjustments in world of such stocks, the Secretary of the Treasury is authortrade. However, because of the great world ized and directed to purchase silver, at home or abroad, for present or future delivery with any direct obligasupply of silver and its use in varying forms by tions, coin, or currency of. the United States, authorthe world's population, concerted action by all ized by law, or with any funds in the Treasury not nations, or at least a large group of nations, is otherwise appropriated, at such rates, at such times, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1934 FEDEKAL RESERVE BULLETIN 437 and upon such terms and conditions as he may deem determined by the market price over a reasonable reasonable and most advantageous to the public inter- period terminating at the time of such order. The est: Provided, That no purchase of silver shall be made Secretary of the Treasury shall pay all necessary costs hereunder at a price in excess of the monetary value of the transportation of such silver and standard silver thereof: And provided further, That no purchases of dollars, coin, or currency, including the cost of insursilver situated in the continental United States on ance, protection, and such other incidental costs as may May 1, 1934, shall be made hereunder at a price in be reasonably necessary. Any silver withheld in excess of 50 cents a fine ounce. violation of any Executive order issued under this SEC. 4. Whenever and so long as the market price of section or of any regulations issued pursuant thereto silver exceeds its monetary value or the monetary value shall be forfeited to the United States, and may be of the stocks of silver is greater than 25 per centum of seized and condemned by like proceedings as those the monetary value of the stocks of gold and silver, provided by law for the forfeiture, seizure, and conthe Secretary of the Treasury may, with the approval demnation of property imported into the United. States of the President and subject to the provisions of section contrary to law; and, in addition, any person failing to 5, sell any silver acquired under the authority of this comply with the provisions of any such Executive order Act, at home or abroad, for present or future delivery, or regulation shall be subject to a penalty equal to at such rates, at such times, and upon such terms and twice the monetary value of the silver in respect of conditions as he may deem reasonable and most advan- which such failure occurred. tageous to the public interest. SEC. 8. Schedule A of title VIII of the Revenue Act SEC. 5. The Secretary of the Treasury is authorized of 1926, as amended (relating to stamp taxes), is and directed to issue silver certificates in such denomi- amended by adding at the end thereof a new subdivinations as he may from time to time prescribe in a face sion to read as follows: amount not less than the cost of all silver purchased "10. SILVER, AND SO FORTH, SALES AND TRANSunder the authority of section 3, and such certificates FERS.—On all transfers of any interest in silver bullion, shall be placed in actual circulation. There shall be if the price for which such interest is or is to be transmaintained in the Treasury as security for all silver ferred exceeds the total of the cost thereof and allowed certificates heretofore or hereafter issued and at the expenses, 50 per centum of the amount of such excess. time outstanding an amount of silver in bullion and On every such transfer there shall be made and delivered standard silver dollars of a monetary value equal to the by the transferor to the transferee a memorandum to face amount of such silver certificates. All silver which there shall be affixed lawful stamps in value certificates heretofore or hereafter issued shall be legal equal to the tax thereon. Every such memorandum tender for all debts, public and private, public charges, shall show the date thereof, the names and addresses taxes, duties, and dues, and shall be redeemable on of the transferor and transferee, the interest in silver demand at the Treasury of the United States in stand- bullion to which it refers, the price for which such ard silver dollars; and the Secretary of the Treasury is interest is or is to be transferred and the cost thereof authorized to coin standard silver dollars for such and the allowed expenses. Any person liable for redemption. payment of tax under this subdivision (or anyone who SEC. 6. Whenever in his judgment such action is acts in the matter as agent or broker for any such pernecessary to effectuate the policy of this Act, the son) who is a party to any such transfer, or who in Secretary of the Treasury is authorized, with the pursuance of any such transfer delivers any silver approval of the President, to investigate, regulate, or bullion or interest therein, without a memorandum prohibit, by means of licenses or otherwise, the acquisi- stating truly and completely the information herein tion, importation, exportation, or transportation of required, or who delivers any such memorandum withsilver and of contracts and other arrangements made out having the proper stamps affixed thereto, with with respect thereto; and to require the filing of reports intent to evade the foregoing provisions, shall be deemed by him reasonably necessary in connection deemed guilty of a misdemeanor, and upon conviction therewith. Whoever willfully violates the provisions thereof shall pay a fine of not exceeding $1,000 or be of any license, order, rule, or regulation issued pursuant imprisoned not more than six months, or both. Stamps to the authorization contained in this section shall, affixed under this subdivision shall be canceled (in upon conviction, be fined not more than $10,000 or, if lieu of the manner provided in section 804) by such a natural person, may be imprisoned for not more than officers and in such manner as regulations under this ten years, or both; and any officer, director, or agent of subdivision shall prescribe. Such officers shall cancel any corporation who knowingly participates in such such stamps only if it appears that the proper tax is violation may be punished by a like fine, imprisonment, being paid, and when stamps with respect to any or both. transfer are so canceled, the transferor and not the SEC. 7. Whenever in the judgment of the President transferee shall be liable for any additional tax found such action is necessary to effectuate the policy of this due or penalty with respect to such transfer. The Act, he may by Executive order require the delivery Commissioner shall abate or refund, in accordance to the United States mints of any or all silver by whom- with regulations issued hereunder, such portion of any ever owned or possessed. The silver so delivered shall tax hereunder as he finds to be attributable to profits be coined into standard silver dollars or otherwise added (1) realized in the course of the transferor's regular to the monetary stocks of the United States as the business of furnishing silver bullion for industrial, President may determine; and there shall be returned professional, or artistic use and (a) not resulting from therefor in standard silver dollars, or any other coin or a change in the market price of silver bullion, or (b) currency of the United States, the monetary value of offset by contemporaneous losses incurred in transthe silver so delivered less such deductions for seignior- actions in interests in silver bullion determined, in age, brassage, coinage, and other mint charges as the accordance with such regulations, to have been spe- Secretary of the Treasury with the approval of the cifically related hedging transactions; or (2) offset by President shall have determined: Provided, That in no contemporaneous losses attributable to changes in the case shall the value of the amount returned therefor market price of silver bullion and incurred in transbe less than the fair value at the time of such order of actions in silver foreign exchange determined, in accordthe silver required to be delivered as such value is ance with such regulations, to have been hedged spe- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

438 FEDERAL RESERVE BULLETIN JULY 1934 cifically by the interest in silver bullion transferred. by the same person of an interest in silver bullion. The provisions of this subdivision shall extend to all Only so much of the interest so acquired as does not transfers in the United States of any interest in silver exceed the interest so transferred, and only so much of bullion, and to all such transfers outside the United the interest so transferred as does not exceed the States if either party thereto is a resident of the United interest so acquired, shall be deemed to be included in States or is a citizen of the United States who has been the wash sale. a resident thereof within three months before the date "The term 'silver bullion' means silver which has of the transfer or if such silver bullion or interest been melted, smelted, or refined and is in such state or therein is situated in the United States; and shall condition that its value depends primarily upon the extend to transfers to the United States Government silver content and not upon its form." (the tax in such cases to be payable by the transferor), SEC. 9. The Secretary of the Treasury is hereby aubut shall not extend to transfers of silver bullion by thorized to issue, with the approval of the President, deposit or delivery at a United States mint under such rules and regulations as the Secretary of the proclamation by the President or in compliance with Treasury may deem necessary or proper to carry out any Executive order issued pursuant to section 7 of the the purposes of this Act, or of any order issued here- Silver Purchase Act of 1934. The tax under this under. subdivision on transfers enumerated in subdivision 4 SEC. 10. As used in this Act— shall be in addition to the tax under such subdivision. The term "person" means an individual, partner- This subdivision shall apply (1) with respect to all ship, association, or corporation; transfers of any interest in silver bullion after the The term "the continental United States" means the enactment of the Silver Purchase Act of 1934, and (2) States of the United States, the District of Columbia, with respect to all transfers of any interest in silver and the Territory of Alaska; bullion on or after May 15, 1934, and prior to the enact- The term "monetary value" means a value calcument of the Silver Purchase Act of 1934, except that lated on the basis of $1 for an amount of silver or gold in such cases it shall be paid by the transferor in such equal to the amount at the time contained in the standmanner and at such time as the Commissioner, with ard silver dollar and the gold dollar, respectively; the approval of the Secretary of the Treasury, may by The term "stocks of silver" means the total amount regulations prescribe, and the requirement of a memo- of silver at the time owned by the United States randum of such transfer shall not apply. (whether or not held as security for outstanding cur- " As used in this subdivision— rency of the United States) and of silver contained in "The term 'cost' means the cost of the interest in coins of the United States at the time outstanding; silver bullion to the transferor, except that (a) in^ case The term "stocks of gold" means the total amount of of silver bullion produced from materials containing gold at the time owned by the United States, whether silver which has not previously entered into industrial, or not held as a reserve or as security for any outstandcommercial, or monetary use, the cost to a transferor ing currency of the United States. who is the producer shall be deemed to be the market SEC. 11. There is authorized to be appropriated, out price at the time of production determined in accord- of any money in the Treasury not otherwise appropriance with regulations issued hereunder; (b) in the case ated, the sum of $500,000, which shall be available for of an interest in silver bullion acquired by the transferor expenditure under the direction of the President and otherwise than for valuable consideration, the cost in his discretion, for-ra.ny purpose in connection with the shall be deemed to be the cost thereof to the last carrying out of this Act; and there are hereby authorprevious transferor by whom it was acquired for a ized to be appropriated annually such additional sums as may be necessary for such purposes. valuable consideration; and (c) in the case of any SEC. 12. The right to alter, amend, or repeal this Act interest in silver bullion acquired by the transferor is hereby expressly reserved. If any provision of this (after April 15, 1934) in a wash sale, the cost shall Act, or the application thereof to any person or cirbe deemed to be the cost to him of the interest transcumstances, is held invalid, the remainder of the Act, ferred by him in such wash sale, but with proper adjustand the application of such provision to other persons ment, in accordance with regulations under this subor circumstances, shall not be affected thereby. division, when such interests are in silver bullion for SEC. 13. All Acts and parts of Acts inconsistent with delivery at different times. any of the provisions of this Act are hereby repealed, "The term 'transfer' means a sale, agreement of but the authority conferred in this Act upon the Presisale, agreement to sell, memorandum of sale or delivery dent and the Secretary of the Treasury is declared to be of, or transfer, whether made by assignment in blank supplemental to the authority heretofore conferred. or by any delivery, or by any paper or agreement or memorandum or any other evidence of transfer or Approved, June 19, 1934, 9 p.m. sale; or means to make a transfer as so defined. "The term 'interest in silver bullion' means any title or claim to, or interest in, any silver bullion or contract MEMORANDUM FOR THE PRESS ISSUED AT THE therefor. "The term 'allowed expenses' means usual and TREASURY DEPARTMENT ON JUNE 22 necessary expenses actually incurred in holding, pro- Amplifying the statement concerning the cessing, or transporting the interest in silver bullion as to which an interest is transferred (including storage, issue of silver certificates, it was pointed out by insurance, and transportation charges but not including Treasury officials that apparently some coninterest, taxes, or charges in the nature of overhead), fusion exists because of a failure to distinguish determined in accordance with regulations issued between, on the one hand, the basis on which hereunder. "The term 'memorandum' means a bill, memoran- or the ounce.age of silver against which silver dum, agreement, or other evidence of a transfer. certificates may be issued and, on the other "The term 'wash sale' means a transaction involving hand, the dollar amount of silver certificates to the transfer of an interest in silver bullion and, within be issued. thirty days before or after such transfer, the acquisition Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

439 JULY 1934 FEDERAL RESERVE BULLETIN As to the first matter, viz, the ounceage of viction, be fined not more than $10,000 or, if a natural silver that must be placed behind any given person, may be imprisoned for not more than ten years, or both; and any officer, director, or agent of dollar amount of silver certificates, it was stated any corporation who knowingly participates in such that silver certificates now or hereafter issued violation may be punished by a like fine, imprisonmust be secured 100 percent with silver, in the ment, or both. form of coin or bullion, valued on the basis of Whereas in my judgment, such action is $1.29 an ounce. Silver certificates have been necessary to effectuate the policy of said Silver issued on this basis for over half a century. Purchase Act of 1934; Stating the matter another way, each dollar Now, therefore, I, Henry Morgenthau, Jr., amount of silver certificates has and will have Secretary of the Treasury, do hereby prescribe back of it either one coined silver dollar or the the following provisions for the investigation, amount of silver bullion necessary to coin a regulation, and prohibition of the acquisition, dollar, to wit, 412}^ grains of standard silver or importation, exportation, or transportation of 37\}{ grains of fine silver. silver and of contracts and arrangements made As to the other matter, viz, the dollar with respect thereto, and requirements conamount of silver certificates to be issued, under cerning the filing of reports deemed by the the Silver Purchase Act of 1934, the Secretary Secretary of the Treasury reasonably necessary of the Treasury is required to issue silver cer- in connection therewith. tificates of a dollar amount equal to the cost of SECT[ON 1. Definitions.—As used in this the silver purchased under section 3 of such order the term "person" means an individual, act. This act, in addition, authorizes, but does partnership, association, or corporation; and not require, him to go further and issue a dollar the term "continental United States77 means amount of silver certificates equal to the mone- the States of the United States, the District of tary value of the silver so purchased, which Columbia, and the Territory of Alaska. monetary value is fixed by law at $1.29 per SEC. 2. Exportation or transportation from ounce. Thus if a thousand ounces of silver is the continental United States.—Except as otherpurchased at a cost of $450, the Treasury is wise specifically provided in sections 4, 5, and required to issue $450 in silver certificates, but 6 hereof, no person shall export or transport may issue $1,290 in such certificates. from the continental United States, any silver except under license issued pursuant to section 3 of this order. SEC. 3. Licenses.—The Secretary of the STATEMENT TO THE PRESS ISSUED AT THE Treasury, subject to such regulations as he may TREASURY DEPARTMENT ON JUNE 28 prescribe, acting directly or through such The Secretary of the Treasury, with the ap- agency or agencies as he may designate, may proval of the President on June 28 issued an issue licenses authorizing the exportation or order forbidding the further export of silver transportation from the continental United except under license. Exceptions are made in States of silver which the Secretary of the the case of fabricated silver, ore, and metals Treasury, or the designated agency, is satisfied: containing silver in relatively small amounts, (a) Is required to fulfill an obligation to deand foreign silver coins. The text of the order liver such silver outside of the continental follows: United States, incurred or assumed by the applicant on or before the date of this order; ORDER OF THE SECRETARY OF THE TREASURY (b) Has been owned on and continuously RELATING TO SILVER after the date of this order by a recognized Whereas, section 6 of the Silver Purchase Act foreign government, foreign central bank, or of 1934 provides as follows: the Bank for International Settlements; (c) Was imported for prompt reexport, or SEC. 6. Whenever in his judgment such action is necessary to effectuate the policy of this Act, the Sec- was imported in silver bearing materials under retary of the Treasury is authorized, with the approval an agreement to refine such materials and exof the President, to investigate, regulate, or prohibit, port the silver so refined; by means of licenses or otherwise, the acquisition, im- (d) Is of a fineness of 0.8 or less; or portation, exportation, or transportation of silver and of contracts and other arrangements made with respect (e) With the approval of the President, for thereto; and to require the filing of reports deemed by other purposes not inconsistent with the purhim reasonably necessary in connection therewith. poses of the Silver Purchase Act of 1934. Whoever willfully violates the provisions of any license, SEC. 4. Fabricated silver.—Silver contained order, rule, or regulation issued pursuant to the authorization contained in this section shall, upon con- in articles fabricated and held in good faith for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

440 FEDERAL RESERVE BULLETIN JULY 1934 a specific and customary use and not for their mail, a copy of the license shall be sent to the value as silver bullion may be exported, or postmaster of the post office designated in the transported from the continental United States, application, who will act under the instructions without the necessity of obtaining a license: of the Postmaster General in regard thereto. Provided, That a statement containing such in- SEC. 8. Exports prohibited by other orders, formation as may be required by the Secretary etc.—The provisions of sections 3, 4, 5, and 6 of the Treasury shall have been executed, sworn shall not be construed to authorize any exporto, and filed in duplicate with the collector of tation or transportation from the continental customs at the port of shipment from the con- United States prohibited by any other order tinental United States or with the postmaster or by any law, ruling, or regulation. at the place of mailing; and such collector or SEC. 9. Reports.—The Secretary of the Treaspostmaster shall have endorsed on the duplicate ury shall require the filing of such reports, in copy of such affidavit that he is satisfied that such manner, at such times, and containing the shipment from the continental United such information, as is deemed by him reason- States is not being made for the purpose of ably necessary in connection with the investiholding or disposing of such articles outside of gation, regulation, or prohibition of acquisithe continental United States primarily for tions, importations, exportations, or transtheir silver content: Provided, That persons portations of silver and of contracts and leaving the continental United States may carry arrangements made with respect thereto. with them such articles owned by them and for SEC. 10. Regulations.—The Secretary of the their personal use in their fabricated form, of a Treasury is hereby authorized and empowered fine silver content not exceeding 100 troy to issue such regulations as he may deem ounces without the necessity of filing such necessary to carry out the purposes hereof. affidavit or obtaining an export license under Licenses and permits granted in accordance this order. with the provisions of this order and such SEC. 5. Metals containing silver.—Metals regulations may be issued through such officers containing not more than 50 troy ounces of and agencies as the Secretary of the Treasury fine silver per short ton may be exported or may designate. transported from the continental United States SEC. 11. Penalties.—All persons are hereby without the necessity of obtaining a license informed that section 7 of the Silver Purchase under this order: Provided, That the collector Act of 1934 prescribed penalties for wTillful vioof customs at the port of export or the postlation of any of the provisions hereof or of any master at the place of mailing may require the license, order, rule, or regulations issued or prefurnishing of such evidence and the execution scribed under the authority hereof. of such affidavits as are necessary to satisfy This order and any regulations, rules, and him as to the silver content of the metals. licenses prescribed or issued hereunder may be SEC. 6. Silver coin.—Silver coins may be modified or revoked at any time. exported or transported from the continental HENRY MORGENTHAU, Jr., United States without the necessity of obtaining Secretary of the Treasury. a license under this order. Approved: SEC. 7. Collectors of customs and postmasters.—At the time any license is issued FRANKLIN D. ROOSEVELT. under section 3, the issuing agency shall trans- THE WHITE HOUSE, June 28, 1934mit a copy thereof to the collector of customs at the port of export designated in the license. The collector of customs shall not permit the STATEMENT TO THE PRESS ISSUED AT THE TREASURY DEPARTMENT ON JULY 6 exportation or transportation from the continental United States of silver in any form ex- The Acting Secretary of the Treasury, pursucept upon surrender of a license issued under ant to authority conferred upon him by the section 3, a copy of which has been received order of the Secretary of the Treasury relating to by him from the agency authorized to issue silver, approved by the President June 28,1934, such license: Provided, That a license under this today (July 5) prescribed regulations for licensorder shall not be required to export or trans- ing the exportation of silver. port from the United States silver described in Applications for licenses are, in certain cases, sections 4, 5, and 6, if the provisions of such required to be filed with the Federal Reserve sections respectively are complied with. In bank for the district in which the applicant's the event that the shipment is to be made by residence or principal place of business is lo- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JVLY 1934 FEDERAL RESERVE BULLETIN 441 cated, while in other cases they are required to SEC. 3. Scope.—These regulations relate only to be filed with the United States mint or assay exports of silver from the continental United States. SEC. 4. Exportation prohibited by other orders, office nearest the applicant's residence or prinetc.—The provisions of these regulations and licenses cipal place of business. issued hereunder shall not be construed to authorize any Licenses may be issued authorizing the expor- exportation from the continental United States protation of silver which— hibited by any other order or by any law, ruling, or regulations. (a) Is required to fulfill an obligation to de- SEC. 5. Penalties.—Whoever willfully violates any liver such silver outside of the continental provisions of these regulations or of any license, rule, United States, incurred or assumed by the ap- or order issued pursuant hereto shall, upon conviction, plicant on or before June 28, 1934; be fined not more than $10,000, or, if a natural person, may be imprisoned for not more than 10 years, or both; (b) Has been owned on and continuously and any officer, director, or agent of any corporation after June 28, 1934, by a recognized foreign who knowingly participates in such violation may be government, foreign central bank, or the Bank punished by a like fine, imprisonment, or both. for International Settlements; (c) Was imported in silver-bearing materials ARTICLE II. SILVER WHICH MAY BE EXPORTED WITHOUT A LICENSE under an agreement to refine such materials and SECTION 1. Fabricated silver.—Silver contained in export the silver so refined; or articles fabricated and held in good faith for a specific (d) Is of a fineness of not more than 800 parts and customary use and not for their value as silver of silver in 1,000 by assay. bullion may be exported from the continental United The Secretary of the Treasury may, with the States without the necessity of obtaining any export license under these regulations, provided that an approval of the President, also issue licenses affidavit shall have been executed on form TS-20 and authorizing the exportation of silver for pur- filed in duplicate with the collector of customs at the poses other than those above enumerated which port of shipment from the continental United States or are not inconsistent with the purposes of the with the postmaster at the place of mailing; and such collector or postmaster shall have endorsed on the Silver Purchase Act of 1934. duplicate copy of such affidavit that he is satisfied that No license is necessary to export articles fab- the shipment from the continental United States is not ricated from silver, foreign silver coin, and ore being made for the purpose of holding or disposing of such articles outside of the continental United States and metals containing silver in relatively small primarily for their silver content: Provided, That amounts, but, except in the case of foreign persons leaving the continental United States may silver coin, an affidavit is required to be filed carry with them such articles owned by them and for with the collector of customs at the port of ex- their personal use in their fabricated form of a fine silver content not exceeding 100 troy ounces without port or the postmaster at the place of mailing the necessity of filing such affidavit or obtaining an before the silver may be exported. export license under these regulations. Collectors of customs with whom such affidavits are REGULATIONS RELATING TO LICENSING THE EXPORT filed shall forward the duplicate copies thereof bearing OF SILVER their endorsements as aforesaid to the Director of the Mint. Postmasters shall forward the duplicate copies TREASURY DEPARTMENT, of such affidavits to the Postmaster General for re- OFFICE OF THE SECRETARY, forwarding to the Director of the Mint.1 July 5, 1934. SEC. 2. Metals containing silver.—Metals containing not more than 50 troy ounces of fine silver per ARTICLE I. MISCELLANEOUS PROVISIONS short ton may be exported from the continental United States without the necessity of obtaining a license SECTION 1. Authority for regulations.—These regu- under these regulations, provided that an affidavit lations are prescribed in pursuance of the provisions of shall have been executed on form TS-21 and filed in the order of the Secretary of the Treasury relating to duplicate with the collector of customs at the port of the exportation of silver, approved by the President shipment from the continental United States or with under date of June 28,1934. the postmaster at the place of mailing; and such col- SEC. 2. Definitions.—As used in these regulations— lector or postmaster shall have endorsed on the dupli- The term "person" means an individual, partner- cate copy of such affidavit that he is satisfied that the ship, association, or corporation; silver content of such metals is not more than 50 troy The term "continental United States" means the ounces of fine silver per short ton. States of the United States, the District of Columbia, Collectors of customs with whom such affidavits are and the Territory of Alaska; filed shall forward the duplicate copies thereof with The term "export", "exportation", or "reexport" their endorsements as aforesaid to the Director of the shall be construed to include transportation from the continental United States; 1 Sec. 16 (2) of the regulations issued under the Gold Reserve Act of The term "importation" or "imported" shall be 1934 provides that fabricated gold, as denned in sec. 4 of such regulations, may be exported or transported from the continental United States construed to include transportation into the continental without the necessity of obtaining a license, provided that an affidavit United States, and the term "importer" shall be con- shall have been executed and filed as provided therein. Therefore, in strued to include a person transporting silver into the order to export articles fabricated from both gold and silver the exporter must comply with the provisions of the aforesaid gold regulations as well continental United States. as with the provisions of these regulations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

442 FEDERAL RESERVE BULLETIN JULY 1934 Mint. Postmasters shall forward the duplicate copy oath (which shall be attached to and made a part of of such affidavits to the Postmaster General for the application) showing (1) the amount of silver held reforwarding to the Director of the Mint.2 by the applicant at the close of business June 28, 1934, SEC. 3. Silver imported for prompt reexport.— and at the time of his application; and (2) a list of all Silver imported for prompt reexport (regardless of his firm contracts whether for purchase or sale of silver, whether the importation occurred before, on, or after which at the close of business on June 28, 1934, had June 28, 1934) may be exported, from the continental not been completely fulfilled by delivery of all the United States without the necessity of holding a license silver therein contracted for. Such list shall state (a) therefor, provided it remains under customs custody the names and addresses of the parties to each conthroughout the period during which it is within the tract; (6) the dates of such contracts; (c) the amounts customs limits of the continental United States. of silver contracted for in each contract and the delivery SEC. 4. Silver coin.—Silver coins may be exported date specified in each contract; (d) the amount of silver from the continental United States without the neces- undelivered under each contract at the close of business sity of obtaining a license under these regulations.3 June 28, 1934; (e) the amount of silver undelivered under each contract at the time of his application, but which is required to be delivered under such contracts. ARTICLE III. EXPORTATION OF SILVER FROM THE CON- Upon receipt of the application and after making such TINENTAL UNITED STATES PROHIBITED EXCEPT UNDER investigation of the case as it may deem advisable, the LICENSE Federal Reserve bank shall transmit to the Secretary of the Treasury the original of the application, together SECTION 1. Licenses required.—Except as hereinwith any supplemental information it may deem approbefore provided in article II of these regulations, no priate. * The Federal Reserve bank shall retain the silver shall be exported from the continental United duplicate of the application for its records. States unless a license therefor shall first have been obtained from the Secretary of the Treasury, or the (2) Every application for a license under subdivision agency hereinafter designated, in accordance with this (d) of section 1 of this article shall be made on form article or article IV of these regulations. Licenses may TS-23, shall be executed under oath before an officer be issued authorizing the exportation from the con- duly authorized to administer oaths, and shall be filed tinental United States of silver which the Secretary of in duplicate with the United States mint or assay office the Treasury, or the designated agency, is satisfied— nearest to the residence or principal place of business of (a) is required to fulfill an obligation to deliver such the applicant. Upon receipt of the application and silver outside of the continental United States, incurred after making such investigation of the case as he may or assumed by the applicant on or before June 28, deem advisable, the superintendent or assayer in charge 1934; of the mint or assay office with which the application is filed shall transmit to the Secretary of the Treasury the (b) has been owned on and continuously after June original of the application together with any supple- 28, 1934, by a recognized foreign government, foreign mental information he may deem appropriate. The central bank, or the Bank for International Settlemint or assay office shall retain the duplicate of the ments; application for its records. (c) was imported in silver bearing materials under an agreement to refine such materials and export the SEC. 3. Issuance of licenses.—(1) If the issuance of silver so refined (licenses under this subdivision are a license under subdivision (a) or (b) or the last paraprovided for in article IV of these regulations); or graph of section 1 of this article is approved, the Fed- (d) is of a fineness of not more than 800 parts of eral Reserve bank which received and transmitted the silver in 1,000 by assay. application will be advised by the Secretary of the Subject to the conditions prescribed in these regula- Treasury and directed to issue a license on form TSL-22. tions, the Secretary of the Treasury may, with the If the application is disapproved, the Federal Reserve approval of the President, issue licenses authorizing bank will be so advised and shall notify the applicant. the exportation of silver from the continental United The decision of the Secretary of the Treasury with States for purposes, other than those specified in (a), respect to the approval or disapproval of an application (&), (c), and id) of this section, which are not incon- shall be final. If a license is granted, the Federal sistent with the purposes of th Silver Purchase Act of Reserve bank shall thereupon note upon the duplicate 1934. of the application therefor the date of approval and SEC. 2. Application for license.— (1) Every applica- issuance, and the amount of silver specified in such tion for license under subdivisions (a) and (b) and the license. last paragraph of section 1 of this article shall be made (2) If the issuance of a license under subdivision (d) out on form TS-22, shall be executed under oath before of section 1 of this article is approved, the mint or assay an officer duly authorized to administer oaths and shall office which received and transmitted the application be filed in duplicate with the Federal Reserve bank for will be so advised by the Secretary of the Treasury and the district in which the applicant resides or has his directed to issue a license on form TSL-23. If the principal place of business. Applications under application is disapproved, the mint or assay office will subdivision (a) of section 1 of this article shail be be so advised and shall notify the applicant. The accompanied by a sworn copy of the contract or obliga- decision of the Secretary of the Treasury with respect tion required to be fulfilled, and a statement under to the approval or disapproval of an application shall be final. If a license is granted, the mint or assaj^ office shall thereupon note upon the duplicate of the applica- 2 Sec. 17 of the regulations issued under the Gold Reserve Act of 1934 provides that metals containing not more than 5 troy ounces of fine gold tion therefor, the date of approval and issuance and per short ton may be exported from the United States only under a the amount of silver specified in such license. license issued pursuant to art. Ill of such regulations. Therefore, in order to export metals containing both gold and silver the exporter must comply with the provisions of the aforesaid gold regulations as ARTICLE IV. EXPORT OF SILVER IMPORTED FOR REFINTNG well as with the provisions of these regulations. AND REEXPORT 3 The Executive order of Jan. 15,1934, regulating transactions in foreign exchange, transfers of credit, and the export of coin and currency pro- SECTION 1. Silver imported in silver-bearing materials hibits the export or withdrawal from the United States of any silver coin for reexport.—The superintendent of the United States which is legal tender in the United States by any person within the United States except under license issued pursuant to that order. assay office at New York or the United States mint at Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1934 FEDERAL RESERVE BULLETIN 443 San Francisco shall, subject to the conditions herein- the silver specified by the application and the amount after specified in this article, issue licenses on form specified by the settlement sheet. The Director of the TSL-24 authorizing the export of silver which the Mint shall prescribe the form of such certificate. superintendent of such assay office or mint is satisfied SEC. 7. Issuance of export licenses.—Upon delivery was refined either from silver-bearing materials im- of the serially numbered certificate to the assay office ported into the continental United States under an at New York or to the mint at San Francisco, whichever agreement to refine such materials and export the silver has issued the certificate, within 120 days from the date so refined, or from a mixture containing such materials. the certificate was issued, the superintendent of the mint If the silver to be exported was refined from a mixture or assay office shall issue to the applicant an export of imported and other materials it shall for all purposes license on form TSL-24 to export refined silver in an be deemed to have been refined solely from the im- amount not exceeding the amount specified in the setported materials and shall be so treated in the appli- tlement sheet as show^n on such certificate, shall indicant's accounts and book records. Such licenses may cate on the duplicate copy of the application the date be issued regardless of whether the importation occurred and number of the license, and the amount of silver before, on, or after June 28, 1934. authorized to be exported thereunder, and shall forward SEC. 2. Notation upon entry.—Upon the formal such copy of the application to the Secretary of the entry into the continental United States of any silver- Treasury. bearing materials, the importer shall declare to the collector of customs at the port whe re the silver-bearing ARTICLE V. GENERAL PROVISIONS RELATING TO APPLImaterial is formally entered that the importation is CATIONS, AFFIDAVITS, AND LICENSES made under an agreement providing for the export of the silver refined from such materials. The collector SECTION 1. General provisions affecting applicashall make on the entry a notation to this effect and tions, affidavits, and papers.—Every application, affiforward a copy of the entry to the United States assay davit, or other paper required to be made hereunder office at New York or to the United States mint at shall be made upon the appropriate form prescribed by San Francisco, whichever is designated by the importer. the Secretary of the Treasury, shall contain all the If the silver-bearing materials were imported on or information called for in such form, and shall be prior to the date of these regulations, the declaration executed under oath before an officer authorized to hereinabove required may be waived, provided other administer oaths. Action upon any application or satisfactory evidence is submitted in lieu thereof. affidavit may be withheld pending the furnishing of SEC. 3. Sampling and assaying.—Promptly upon the any or all of the information required in such forms receipt of each importation of silver-bearing material or of such additional information as may be deemed at the plant where it is first to be treated, it shall be necessary by the Secretary of the Treasury, or the weighed, sampled, and assayed for the silver contrnt. agency authorized or directed to act hereunder. A reserve commercial sample shall be retained by such There shall be attached to the applications, affidavits, plant for at least 2 years from tp e date of importation or other papers such instruments as may be required unless the assay is sooner verified by the Treasury by the terms thereof and such further instruments as Department. may be required by the Secretary of the Treasury or by such agency. Whenever additional information is SEC. 4. Plant records.—The importer shall keep an requested it shall be furnished under oath. exact record, covering each Vmportation, to be kept in the plant of first treatment . The records shall show the SEC. 2. Proof of payment of tax on silver transfers.— gross wet weight of the im Portation, the weight of con- Each application for license to export silver shall be tainers, if any, the net wet weight, the percentage of accompanied by satisfactory proof that the tax under weight of moisture, the net dry weight, the silver con- subdivision 10 of schedule A of title VIII of the tent shown by the set tlement assay, and the amount of Revenue Act of 1926, as added by section 8 of the silver required to be exported under the agreement. Silver Purchase Act of 1934 (hereinafter referred to An attested copy of such record shall be filed promptly, as "the tax") upon the transfer to the applicant of with the assay office at New York or the mint at San the silver to be exported, and upon the transfer from Francisco, whichever has been designated to receive a the applicant, if any, resulting from such exportation, copy of the entry. The plant records herein required has been paid, or that the applicant is not liable for to be kept shall be available for examination b}^ a repre- any tax on either of such transfers; provided, that, if sentative of the Treasury Department for at least the exportation is pursuant to an agreement to trans- 2 years after the date of the disposition of such silver. fer such silver and the tax upon the transfer resulting SEC. 5. Application for license.—Not later than 3 from such agreement is not due at the time of such months from the date of entry the importer shall file application, the applicant may, in lieu of payment of with the assay office at New York or the mint at San such tax, give a bond to the United States to pay such Francisco, whichever has been designated to receive a tax, if any, when due. Such bond shall be in an copy of the entry, an applicati on on form TS-24 for a amount equal to double the amount of the tax as estilicense to export the refined silver. Such application mated by the Secretary of the Treasury or the agency shall be executed under oath before an officer duly designated to act for him. authorized to administer oaths, filed in duplicate, and SEC. 3. Notice upon denial of license.—Whenever an shall be accompanied by a swor n copy of the above- application for a license under these regulations is mentioned agreement under whi ch the silver-bearing denied the applicant will be so advised. materials were imported and two duly attested copies SEC. 4. Licenses nontransferable.—Licenses and of the settlement sheet. permits issued or granted under these regulations are SEC. 6. Issuance of a serially num bered certificate.— not transferable. If the superintendent of the mint or assay office is satis- SEC. 5. Procedure after issuance of license.—When fied as to the accuracy of the data sho wn on such appli-a license is issued under these regulations the original cation, he shall issue to the importer a dated, serially shall be delivered to the applicant and a copy thereof numbered certificate which shall show the amount of shall be transmitted, to the collector of customs at the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

444 FEDERAL RESERVE BULLETIN JTJLY1934 port of exportation designated thereon: Provided, That Reserves of the Bank of France, on the other if the applicant shall indicate in his application that he intends to export by mail, a copy of the license shall be hand, continued to grow in large volume during sent to the postmaster at the point of mailing indicated the past month notwithstanding the adverse in the application, rather than to the collector of customs. No collector of customs or postmaster shall balance of commodity trade of France permit the exportation from the continental United the country. In part this ad- States of any silver under these regulations except upon the filing of a proper affidavit or the surrender of a verse balance is offset by tourist expenditures, license to export, a copy of which has been received by shipping revenues, and income from foreign inhim from a Federal Reserve bank or a mint or assay vestments ; but the evidence appears to indicate office, as the case may be, unless such silver may be exported under sections 1, 3, or 4 of article II of these that since 1931 there has been a deficit in the regulations without a license and without filing an international transactions of the country, exaffidavit. The collector of customs or postmaster to whom a license to export is surrendered shall cancel clusive of capital movements. The continued the same by indicating, on both the original and the accumulation of gold in the Bank of France copy, whether such silver has been exported. The duplicate copy of trie license shall be retained by him until the end of 1932 reflected largely the refor his files and the original thereof shall be returned patriation of balances hitherto held in foreign to the Federal Reserve bank or the mint or assay office, which ever issued it. centers by the French commercial banks, to- SEC. 6. Expiration of licenses.—All licenses issued gether with some movement of funds to Paris under these regulations shall expire 30 days from the date of issuance unless otherwise stated therein. for safety. By the end of 1932 exchange hold- T. J. COOLIDGK, ings of the French commercial banks had been Acting Secretary of the Treasury. repatriated and it appeared as if the deficit in Gold reserves of the German Reichsbank the country's international transactions was becontinued to decline during the past month, coming effective. In December gold began Balance of anc^ on ^une %0 they amounted to flow out of France. The movement coninternational to less than $30,000,000. Since tinued until the spring of 1933; but since that the end of JanuaiT they have time capital movements have again dominated declined by $125,000,000. the French balance of payments. Capital Largely because of this reserve situation and the moved into France in considerable volume after continued adverse balance of the country's the united stand taken by the gold countries in international trade a complete moratorium on July and moved out in even larger volume durservice of the long-term foreign debt has been ing the political difficulties of the autumn and declared for the next half year. The excess of the following winter. Recently, accompanymerchandise imports into Germany in the first ing measures taken by the government of 5 months of 1934 amounted to 180,000,000 national union to balance the budget, there reichsmarks, in contrast with a surplus of has been a heavy movement of funds back to exports of 260,000,000 in the same period last France, and gold reserves of the Bank of year and a surplus of 825,000,000 in 1931. This France have increased by $375,000,000 since adverse balance of trade appears to be more the first of March. than covered by receipts from German shipping and payments by the U.S.S.R. for goods im- The British balance of payments also has ported from Germany in previous years; but been characterized by large capital movements, not all German merchandise exports yield although the accompanying England their full value in foreign exchange to the movements of gold have af- Reichsbank. To a considerable extent pay- fected the unreported holdings of the equalizament is effected by means of blocked reichs- tion fund rather than reserves of the Bank of marks or German securities purchased abroad England. British acquisitions of gold have and resold in Berlin. Hence interest payments not reflected a surplus in the current internaabroad in recent months have been accom- tional transactions of the country. In 1931, panied by reductions in gold reserves of the the year in which England suspended the gold bank. standard, the adverse balance of commodity Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

445 JULY 1934 FEDERAL RESERVE BULLETIN trade had reached £400,000,000 and income until the present time. The value of imports from foreign investments, shipping, and various has shown no tendency to increase since the international services was not sufficient to summer of 1933 when the heavy buying of raw offset it. For the year as a whole the deficit materials and semi-manufactures that accomon current international transactions was panied rising markets in the United States £100,000,000; and during the summer there was interrupted. Exports, however, rose more was also a heavy outward movement of foreign than seasonally in the latter months of the balances from London. In the following year year and have since continued on a substanthe adverse trade balance was reduced by tially higher level than in the summer of 1933. nearly a third and it was reduced again in 1933. A major element in this rise has been the These reductions brought the country's current growth in exports of finished manufactures. international transactions approximately into With the reestablishment of a substantial balance notwithstanding the decline in income excess of merchandise exports there has defrom foreign investments and other sources. veloped a correspondingly large surplus in the Recently, however, merchandise imports have current international transactions of the counbeen increasing more rapidly than exports. try, since income from foreign investments The adverse balance of trade from December offsets such debit items as expenditures of 1933 through May 1934 has been £23,000,000 American tourists and remittances of immilarger than in the corresponding period of the grants to their families abroad. This surplus previous year. in current transactions has been accompanied In contrast to these three countries, which by acquisitions from foreign gold reserves by have net payments to make on merchandise the United States. In particular, after stabiimports and on total current lization of the dollar at the end of January, United States transactions as well, the United when the inward flow of capital greatly in- States has a balance of international payments creased the effects of the current surplus, characterized by a substantial surplus in both there were large imports of gold to this counrespects. For the period May through Sep- try. In recent months the movement of capitember 1933, however, there was a small ex- tal has ceased to be a large factor; but the cess of merchandise imports and total current excess of merchandise exports together with transactions appear to have involved a net the surplus on total current transactions, of payment to foreigners, even making allowance which these exports are a part, continues. for some uncertainty in the estimates of invisible items. During this period the export of capital from this country was a factor in Change in Foreign Central Bank Discount Rates the decline of the exchange value of the dollar; The following changes in discount rates but inward movements of capital at the lower during the month ending July 1 have been rate for the dollar balanced the account. In reported by central banks in foreign countries: the fall a substantial excess of merchandise Austrian National Bank, June 28, from 5 to 4J4 percent. exports again developed and has continued Bank of Java, July 1, from 4}£ to 4 percent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

446 FEDERAL RESERVE BULLETIN JULY 1934 REGULATION E OF THE FEDERAL DEPOSIT INSURANCE CORPORATION (This regulation was approved June 18, 1934, and became effective as of that date) SCOPE OF REGULATION stating that the bank elects to withdraw from the fund as of July 1, 1934. Said resolution, if adopted prior to This regulation relates to the manner of exercise of sending the notice prescribed in subsection (a) of this the right of any bank which is not a member of the section, shall authorize the person who subsequently Federal Reserve System to withdraw from the Tem- sends such notice to so do. The resolution referred to porary Federal Deposit Insurance Fund on July 1, in the first sentence of this subsection, if adopted sub- 1934. sequent to sending the notice prescribed in subsection SECTION 1 STATUTORY PROVISIONS (a) of this section, shall ratify the act of sending such notice. Subsection (y) of section 12B of the Federal Reserve (c) A copy of the resolution, attested and bearing the Act, as amended, provides in part as follows: bank's seal and which complies with the preceding sub- "The Corporation shall prescribe by regulations the section, must be properly addressed and mailed to the manner of exercise of the right of nonmember banks to Federal Deposit Insurance Corporation, Washington, withdraw from membership in the fund on July 1, 1934, D.C., on or before June 25, 1934. except that no bank shall be permitted to withdraw unless ten days prior thereto it has given written notice to the Corporation of its election so to do.'; SECTION 4 Any nonmember insured bank which expressly or SECTION 2 impliedly agreed with this Corporation at the time of its admission to the fund to fulfill a commitment to sell No member bank of the Federal Reserve System is preferred stock or capital obligations to the Reconentitled to withdraw from the fund on July 1, 1934, and struction Finance Corporation which has not fulfilled accordingly, each such bank will continue for the period such commitment and which has not been relieved by of extension of the fund to have its deposits insured by this Corporation from its agreement with this Corporathis Corporation as provided by law. tion to fulfill such commitment, shall exercise its right Each fund member which is not a member bank of the of withdrawal from the fund on July 1, 1934, in the Federal Reserve System will continue for the period of following manner: extension of the fund to have its deposits insured by (a) It shall comply with subsections (a), (6), and (c) this Corporation as provided by law unless it shall exerof section 3 hereof. cise its rights to withdraw as of July 1, 1934, by fulfill- (6) The bank shall comply with either paragraph (i) ing the requirements hereinafter enumerated. or (ii) hereof, but is not required to comply with both. (i) The bank must fulfill its commitment to the Re- SECTION 3 construction Finance Corporation or in lieu thereof First, any nonmember insured bank, which did not obtain capital funds from other sources in an amount expressly or impliedly agree with this Corporation in at least equal to the amount of capital funds it would connection with its admission ^to the fund to fulfill a have obtained by fulfilling its commitment to the Recommitment to sell preferred stock or capital obliga- construction Finance Corporation and submit to the tions to the Reconstruction Finance Corporation; or Federal Deposit Insurance Corporation satisfactory second, any such bank even though it did so agree, proof of the obtaining of such capital funds from other which has fulfilled its commitment to the Reconstruc- sources. tion Finance Corporation; or third, has been relieved (it) If the bank does not comply with paragraph (i) by this Corporation from its agreement with this Cor- it shall submit to the Corporation a certificate signed poration to fulfill such commitment, shall be entitled to by at least two executive officers of such bank and a effect its withdrawal from the fund as of July 1, 1934, majority of the board of directors or trustees as to by complying with the following requirements and not whether or not, according to the best judgment of such otherwise: officers and directors or trustees, the bank has assets (a) Notice of the election of the bank to withdraw of sufficient value to meet all of its obligations to from the fund by a letter or telegram properly directed depositors and other creditors and shall further submit to the Federal Deposit Insurance Corporation, Wash- proof by affidavit of the same officers that the bank ington, D.C., must be sent by an agent of the bank on has notified the authority having supervision of such or before June 20, 1934. State banks that it has elected to withdraw from the (6) A resolution must be lawfully adopted by the Temporary Federal Deposit Insurance Fund on July governing board of the bank on or before June 25/1934, 1, 1934. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY lt>S4 FEDERAL RESERVE BULLETIN 447 NATIONAL SUMMARY OF BUSINESS CONDITIONS [Compiled June 23 and released for publication June 25] Industrial production increased slightly in and pastures, largely as a consequence of a May, while factory employment and pay rolls prolonged drought. The winter wheat crop showed little change. The general level of was estimated at 400 000,000 bushels as comwholesale prices, after remaining practically pared with a 5-year average of 630,000,000 unchanged since the middle of February, ad- bushels and an exceptionally small crop of vanced sharply in the middle of June, reflecting 350,000,000 bushels last season. Rains in chiefly increases in the prices of livestock and early June somewhat improved prospects for livestock products. forage and grain crops not already matured. Production and employment.—Industrial Distribution.—Total freight traffic increased production, as.measured by the Board's sea- in May by more than the usual seasonal sonally adjusted index, advanced from 86 per- amount, reflecting in considerable part a larger cent of the 1923-25 average in April to 87 volume of shipments of miscellaneous products. percent in May, as compared with a recent low At department stores the value of sales showed level of 72 last November. Activity at steel an increase, as is usual at this season. mills increased further from 54 percent of Commodity prices.—During May and the capacity in April to 58 percent in May, while first three weeks of June wholesale prices of indioutput of automobiles showed a decline. vidual farm products fluctuated widely, while Lumber production continued at about oneprices of most other commodities showed little third the 1923-25 level. In the textile inchange. Wheat, after advancing rapidly durdustries output declined somewhat, partly as ing May, declined considerably in the first a consequence of seasonal developments. At three weeks of June. Cotton continued to mines coal production showed little change in advance in the early part of June. In the volume, while output of petroleum continued middle of the month hog prices increased to increase. sharply from recent low levels. Automobile In the first 3 weeks of June activity at prices were reduced in the early part of June, steel mills continued at about the May level, and copper prices advanced. although a decline is usual at this season. Bank credit.—During May and the first half Maintenance of activity reflected in part, acof June there was little change in the volume of cording to trade reports, considerable stocking reserve bank credit outstanding. As a conseof 'steel. Output of automobiles declined somequence of expenditure by the Treasury of cash what, as is usual at this season. and deposits with the Federal Reserve banks Employment in factories, which usually deand a growth in the country's monetary gold clines slightly between the middle of April and stock, member bank reserve balances advanced the middle of May, showed little change, while further to a level $1,800,000,000 in excess of employment on the railroads, in agriculture, legal requirements. In the week ending June and in the construction industry increased, as 20, however, excess reserves dropped to is usual at this season. Increased employment $1,675,000,000, reflecting an increase in Treaswas shown at manufacturing establishments ury deposits at the Reserve banks in connection producing durable goods, such as iron and steel with June 15 tax receipts and sales of Governand nonferrous metals, while employment ment securities. declined at establishments producing non- Total loans and investments of reporting durable manufactures, such as textiles and member banks increased by $80,000,000 betheir products. Value of construction contracts awarded, as tween May 16 and June 13, reflecting a growth reported by the F. W. Dodge Corporation, has in holdings of investments other than United shown a decline in the spring months, reflecting States Government securities and in opena reduction in the volume of contracts for market loans to brokers and dealers, while public projects. The volume of construction loans to customers declined. Net demand work actually under way has increased as work deposits increased by about $400,000,000 during has progressed on contracts previously awarded. the period. Department of Agriculture estimates based Money rates in the open market continued on June 1 conditions indicated unusually small at low levels. The rate on prime commercial crops of winter wheat and rye and exceptionally paper declined to %-l percent in June, the poor conditions for spring wheat, oats, hay, lowest figure on record. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

448 FEDERAL RESERVE BULLETIN JULY 1934 RESERVE BANK CREDIT AND RELATED ITEMS MILLIONS OF DOLLARS Weekly basis: Wednesday series MILLIONS OF DOLLARS 6000 8000 7000 7000 6000 6000 5000 5000 4000 4000 3000 3000 2000 2000 1000 1000 TREASURY CASH & DEPOSITS WITH F. R. BANKS 1929 1930 1931 1932 1933 1934 Based on Wednesday figures; latest figures are for June 27. See table on page 449. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1984 FEDERAL RESERVE BULLETIN 449 FEDERAL RESERVE BANK CREDIT RESERVE BANK CREDIT AND RELATED ITEMS [In millions of dollars. Wednesday series; for other series, see p. 495] Eeserve bank credit outstanding Treas- Treasury ury Date (Wednesday) B co il u ls n t d e i d s- bo B u il g ls ht m G c U u e o n r n v i i t t e t i e r s e d n e s - - O c t s b h r e a e e r n d v r k i e r t e- Total M go o ld n e st t o ar c y k na r b t e a c i a n u n o n c r d n k - y al- M c o i t r i n c o e u n y la - in M b ba a s e l n e a m k r n v b c e r e e e s r - a b p w n F c a o d a . n i s s R t i k h h d t . s s e- b p m N e o r e o s m d i n t e - s - - F R c O e e o d a s t u c h e e n - r r e t v a r s l e 1933—May 3— 400 144 1,837 2,396 4,312 2,305 5,954 2,034 487 182 356 May 10- 338 113 1,837 2,297 4,313 2,303 5,892 399 178 355 May 17.. 330 78 1,837 2,254 4,313 2,299 5,852 2,114 370 175 355 May 24__ 312 43 1,862 2,219 4,314 2,299 5,795 2,194 329 161 353 May 31- 302 20 1,890 2,218 4,315 2,298 5,812 2,167 345 155 353 June 7— 277 11 1,912 2,214 4,316 2,296 5,767 2,204 307 197 352 June 14-_ 254 10 1,932 2,212 4,318 2,295 5,723 2,281 316 153 351 June 2i__ 222 9 1,955 2,194 4,317 2,295 2,205 405 152 348 June 28. _ 191 8 1,975 2,182 4,318 2,296 5,675 2,286 317 169 349 July5_._ 182 23 1,995 2,206 4,318 2,285 5,752 2,219 331 164 344 July 12-. 168 13 2,007 2,201 4,319 2,284 5,667 353 169 345 July 19.. 163 10 2,017 2,197 4,319 2,283 5,635 2,290 335 194 344 July26_. 161 10 2,028 2,201 4,320 2,282 5,601 2,306 366 186 344 Aug. 2___ 164 8 2,038 2,208 4,320 2,281 5,618 2,319 333 188 350 Aug. 9___ 156 8 2,048 2,220 4,320 2,281 5,608 2,376 292 195 350 Aug. 16- 166 7 2,059 2,240 4,321 2,281 5,612 2,371 315 197 347 Aug. 23- 150 7 2,094 2,258 4,328 2,280 5,592 2,432 319 175 348 Aug. 30- 153 7 2,129 2,298 4,328 2,281 5,592 2.427 339 202 347 Sept. 6— 145 7 2,166 12 2,330 4,329 2,280 5,648 2,439 327 178 346 Sept. 13- 133 7 2,203 14 2,357 1,327 2,281 5,602 2,542 317 157 346 Sept. 20.. 130 7 2,238 13 2,388 4,327 2,280 5,605 2,543 334 164 348 Sept. 27- 133 7 2,274 7 2,421 4,324 2,279 5,595 2,596 331 156 347 Oct. 4__. 123 7 2,309 10 2,449 4,324 2,279 5,652 2,523 372 159 346 Oct, 11-. 119 7 2,344 7 2,477 4,324 2,278 5,673 2,567 338 155 §45 Oct. 18.. 113 7 2,375 18 2, 513 4,323 2,277 5,650 2,655 284 166 358 Oct. 25.. 115 7 2,400 5 2,526 4,323 2,277 302 167 357 Nov 1 117 7 2,420 7 2,550 4,323 2,276 5,640 2,591 388 178 353 Nov. 112 7 2,430 -7 2,542 4,323 2,275 5,673 2,578 373 161 356 Nov 111 15 2,432 6 2,564 4,322 2,275 5,654 2,645 345 163 355 Nov 112 20 2,431 -1 2,562 4,323 2,276 6,654 2,687 316 149 355 Nov, 119 24 2,432 7 2,581 4,323 2,277 5,743 2,573 369 142 354 Dec. 6 116 61 2,431 7 2,315 4,323 2,277 5,758 2,561 386 156 354 Dec. 13— 118 116 2,432 11 2,077 4,323 2,295 5,763 2,638 379 160 355 Dec. 20— 115 113 2,432 25 2,686 4,323 2,299 5,849 2,636 329 132 362 Dec. 27— 111 111 2,432 20 2,674 4,323 2,304 6,824 2,675 315 124 362 1934-Jan. 3 106 121 2,432 29 2,688 4,323 2,303 5,791 2,710 311 145 358 Jan. 10— 104 113 2,432 7 2,655 4,323 2,302 5,684 2,777 353 172 295 Jan.17... 101 112 2,432 1 2,646 4,322 2,302 5,643 2,788 407 143 288 Jan. 24— 97 104 2,432 —2 2,631 4,322 2,301 5,581 2,851 398 137 287 Jan. 31—. 111 2,434 2 2,630 U,033 2,302 15,289 2,652 597 141 287 Feb. 7— 97 2,432 4 2,606 2 7, 036 2,301 5,317 2,736 »3,449 142 299 Feb. 14... 86 2,432 7 2,593 . 7,089 2,301 5,321 2,851 3,391 130 290 Feb. 21... 75 2,432 18 2,592 7,203 2,301 5,344 2,830 3,499 132 291 Feb. 28... 62 2,432 8 2,567 7,438 2,302 5,355 3,093 3,440 127 292 Mar. 7... 46 2,432 2,539 7,556 2,312 5,374 3,313 3,294 133 294 Mar. 14.. 37 2,432 2,532 7,605 2,332 5,345 3,454 3,226 143 301 Mar. 21.. 33 2,432 -9 2,508 7,640 2,343 5,334 3,449 3,252 154 302 Mar. 28.. 29 2, 432 5 2,519 7,681 2,356 5,336 3,439 3,318 161 303 Apr. 4___. 26 2,432 2,509 7,703 2,369 5,371 3,450 3,323 140 297 Apr. 11— 17 2,432 2,492 7,732 2,381 5,347 3,560 3,239 148 312 Apr. 18... 13 2,430 2,493 7,746 2,381 5,347 3,665 3,204 167 237 Apr. 25— 10 2,430 5 2,486 7,755 2,380 5,324 3,744 3,148 167 237 May 2 2,432 6 2,484 7,756 2,381 5,359 3,570 3,177 280 235 May 9 2,432 9 2,484 7,756 2,380 5,352 3,678 3,098 257 235 May 16— 2,430 3 2,473 7,753 2,380 5,344 3,082 252 233 May 23— 2,430 -1 2,469 7,766 2,375 5,316 3,767 3,052 242 233 May 30— 2,430 1 2,470 7,776 2,371 5,338 3,763 3,051 233 232 June 6_... 2,430 10 2,475 7,790 2,365 5,342 3,787 3,034 230 237 June 13— 2,430 8 2,472 7,820 2,361 5,313 2,956 251 238 June 20— 2,430 5 2,468 7,835 2,359 5,310 3,769 3,121 224 239 June 27... 2,430 3 2,465 7,846 2,364 5,301 3,837 3,077 225 236 i Beginning Jan. 31,1934, "gold coin in circulation" (estimated for that date at $287,000,000) is excluded from monetary gold stock and money in circulation; see p. 451. • By proclamation of the President dated Jan. 31, 1934, at 3:10 p.m., the weight of the gold dollar was reduced from 25$4o grains to 15%i grains nine-tenths fine. The resulting increase in the value of the monetary gold stock was covered into the Treasury as a miscellaneous receipt and is reflected in an increase in the item "Treasury cash and deposits with Federal Reserve banks." «Less than $500,000. NOTE.—For explanation of recent rearrangement of certain data in this table, see BULLETIN for February 1934, p. 93. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

450 FEDERAL RESERVE BULLETIN JULY 1934 ASSETS AND LIABILITIES OF FEDERAL RESERVE BANKS IN DETAIL; ALSO FEDERAL RESERVE NOTE STATEMENT AND FEDERAL RESERVE BANK NOTE STATEMENT [In thousands of dollars] June 30, 1934 May 31, 1934 June 30, 1933 ASSETS Gold certificates on hand and due from United States Treasury 4, 782, 053 4,653,092 965,230 2, 533,888 Redemption fund—Federal Reserve notes 25,724 29,774 44,068 Other cash ___ .._ 214,011 215,866 270,153 Total reserves _ 5, 021, 788 4,898, 732 3,813, 339 Redemption fund—Federal Reserve bank notes 4, 335 4,720 7,392 Bills discounted: For member banks 24,188 30,880 162,707 For intermediate credit banks For nonmember banks, etc -- 379 379 977 Total bills discounted ___ . _._ _ .. _ 24,567 31, 259 163,684 Bills bought: Payable in dollars: Bought outright 194 103 1,089 Under resale agreement 39,837 Payable in foreign currencies 5,075 5,075 7,089 Total bills bought 5, 269 5,178 48,015 United States Government securities: Bought outright. 2, 430, 294 2,430, 236 1,997, 652 Under resale agreement- _-_ ._ ._ _. __. .._ 1, 600 Total U.S Government securities 2, 431,894 2, 430, 236 1, 997, 652 Other reserve bank credit: Federal intermediate credit bank debentures Municipal warrants 519 535 2,677 Due from foreign banks . ._ __ _ 3,129 3,125 3,729 Reserve bank float (uncollected items in excess of deferred availability items) 6, 690 i 7,451 3,830 Total Reserve bank credit outstanding 2, 472, 068 2, 462,882 2, 219,587 Federal Reserve notes of other Reserve banks 19,202 17, 571 15, 549 Uncollected items not included in float ._ _ _ __ . ___ 418,486 404, 074 369,841 Bank premises _ . 52, 637 52, 602 54, 313 Federal Deposit Insurance Corporation stock __ _ _ 139, 299 139, 299 All other assets _ 46, 825 48, 584 50, 645 Total assets _. 8,174, 640 8,028, 464 6, 530,666 LIABILITIES Federal Reserve notes: Held by other Federal Reserve banks .__ _ 19, 202 17, 571 15, 549 Outside Federal Reserve banks _ 3, 082,112 3,051,110 3,077,862 Total notes in circulation - _ 3,101,314 3,068, 681 3,093,411 Federal Reserve bank note circulation—net ._ _ 46, 682 60,248 123,851 Deposits: Member bank—reserve account 3,840,086 3, 746,003 2, 292, 360 United States Treasurer—general account 64,183 54,817 35,481 Foreign bank 4,893 3,743 15, 523 Other deposits 228, 527 218, 545 150,896 Total deposits 4,137, 689 4,023,108 2, 494, 260 Deferred availability items 418,486 404,074 369,841 Capital paid in... _____ __ _ __ 147,120 146,301 146,763 Surplus.- ._ _ _ _ __ __ 138, 383 138,383 278,599 Reserves (Federal Deposit Insurance Corporation stock, self-insurance, etc.) 161,834 161,832 All other liabilities 23.132 25,837 23,941 *~~ Total liabilities . _. _ __ ._ _ _ 8,174, 640 8,028, 464 6, 530, 666 Contingent liability on bills purchased for foreign correspondents ..- 1, 524 2, 672 35,854 FEDERAL RESERVE NOTE STATEMENT Notes issued to Federal Reserve banks by Federal Reserve agents 3, 350,986 3,338,801 3,336,867 Collateral held by agents as security for notes issued to bank: Gold certificates on hand and due from U.S. Treasury .. . ... 3, 041, 656 3, 006, 771 2, 784, 201 Eligible paper 13, 407 16, 244 134,459 U.S. Government securities. _.. _ 322, 000 359. 300 442, 700 Total collateral 3, 377, 063 3, 382, 315 3, 361, 360 FEDERAL RESERVE BANK NOTE STATEMENT Notes issued to Federal Reserve banks (outstanding) 61,058 73, 688 138, 744 Collateral pledged against outstanding notes: Discounted and purchased bills 1,981 U.S. Government securities -._ 66, 474 81,474 160,974 Total collateral - - 66, 474 81,474 162,955 1 Excess of deferred availability items over uncollected items. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1934 FEDERAL RESERVE BULLETIN 451 ANALYSIS OF CHANGES IN MONETARY GOLD MOVEMENTS OF GOLD TO AND FROM STOCK UNITED STATES1 [Ir millions of dollars] [In thousands of dollars] Analysis of changes 1934 Gold sto°k Month m at o o e n f n th d I i n n s c t r o g e c o a k l s d e N im et p g o o rt ld f N r m o l e e m a t a r s k e r e e a i - r- f O ac t t h o e r r s From or to (prel J i u m n i e nary) May Jan M u a a y ryp I o m rt - s Exports p I o m rt - s Exports p I o m rt - s Exports $l=26$io grains of gold Y\Q fine; i.e., an ounce of fine gold=$20.67 1932—December 4,513 i 173.5 II 100.9 71.0 , l.( Belgium 10 151 20 England 28, 224 7, 677 1,750 407, 547 4,321 Total (12 mo.). 52.9 l| -446.2 457.5 41.6 France 9,306 250 17 178, 276 517 Germany 2 1933— F J e an b u ru ar a y ry-_. 4 4, , 3 5 8 5 0 3 -17 4 3 0 . . 4 0 12 1 8 7 . . 8 5 -1 -9 7 1 8 . . 5 3 -12 3 . . 9 0 N Sw et i h tz e e r r la la n n d d s . 351 7 1 4 2 , , 6 6 5 6 6 2 1,678 March 4,282 -97.2 -22.1 -100.1 25.0 Canada _ "6," 736' 8, 685 12 40, 510 ~"~55 April.. 4,312 29.5 -10.0 33.7 5.7 Central America 333 1,009 May 4,315 3.6 -21.1 22.1 2.6 Mexico ~2~212 2,086 13,473 June... 4,318 2.2 -3.2 3.5 1.9 Argentina 5 July 4,320 i 2 7 -83.9 i 84.5 2.1 Colombia 2,554 9,199 August 4,328 1. 5 -80.4 j 79.5 8.4 Ecuador. _ 90 214 September- 4,324 -3.8 -56.7 ! 49.3 3. 6 Peru -. 18 441 October 4,323 -0.7 -32.4 I 26.9 4.8 Uruguay November- 4,323 -1.1 I 0.6 0.4 Venezuela. 59 418 December.. 4,323 -0.5 -9.1 I 11.8 -3.1 Australia 48 279 British India 12, 900 10, 240 26, 318 Total (12 mo.). -190.4 -173.7 I -58.0 41.4 China and Hong 1934—January M.033 12-289.3 !! -2.8 12.2 1-298.7 Du K t o ch n g East Indies.._ 2,224 1,865 8,448 $l=15%i grains of gold <Mo fine; i.e., an Japan 4 ounce of fine gold = $35 Philippine Islands. _ 944 4,397 February. 7,438 3,405.0 452.6 68.7 ! 2,883. 8 All other countries 2. 495 4,075 March 7,695 256.8 237.3 -0.8 i 20.3 April 7, 757 61.5 54. 7 -1.1 i 7.9 Total 62,147 I 35, 362 1,780 782,085 6,626 May 7,779 22.4 33.6 0.5 | -11.0 June p 7,856 77.0 62.1 1.2 13.6 I I i With some exceptions figures represent customs valuations at rate of $20.67 a fine ounce through January 1934 and $35 a fine ounce thereafter. v Preliminary. 1 Includes all movements of unreported origin or destination. i Gold released from earmark at Federal Reserve banks less gold placed under earmark (with allowance when necessary for changes in Back figures—See Annual Report for 1932 (tables 49 and 50). gold earmarked abroad for account of Federal Reserve banks), 8 Decrease reflects primarily omission from gold stock of "gold coin in circulation" beginning with January 1934; see note 0) at bottom of page. Back figures.—See Annual Report for 1932 (table 47). 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 i e l f d s i- S d s o t i a a l l r v l n d a e d r r s - c S c e i a r l t t v i e f e s i r - o T n f u r o e 1 r t y a 8 e 9 s s - 0 s s i S i d l u i v a b e r - r y M c i o n in or U S n n t o a i t t t e e e s s d F R n e e d o se e te r r v s al e F R n e b e d o a se e t n e r r k v s a e l t n b i N o o a n t n a e a - k s l- 1933—January _ _ | 5,645 479 591 28 350 1 250 111 287 2,707 3 836 February I 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 I 6,003 335 323 28 360 1 255 112 261 3,362 50 915 May -_! 5,812 324 280 28 359 1 256 112 265 3,167 99 922 June i 5,721 321 265 28 361 1 257 113 269 3,061 125 920 July i 5,630 320 252 28 365 1 258 113 275 2,974 129 914 August 5,612 319 242 28 372 1 261 114 277 2,953 133 911 September ! 5,650 312 232 28 385 1 265 115 280 2,966 156 909 October j 5, 635 312 225 29 387 1 267 116 111 2,930 189 903 November ' 5,742 311 219 29 394 1 269 117 285 2,998 206 913 December ; 5,806 311 213 29 407 1 272 117 286 3,044 208 918 1934—January j i 5,289 0) 178 29 391 1 267 116 283 2,894 202 927 February , i 5, 354 (0 167 29 399 1 270 117 289 2,949 194 938 March.... ! 15,394 0) 161 30 403 1 272 118 289 3,005 178 936 April ; 15,368 0) 157 30 400 1 274 118 282 3,025 162 918 May i 15,357 (0 153 30 402 1 277 120 279 3,038 151 906 June p I 15,372 (]) 150 30 405 1 279 119 280 3,068 141 902 v Preliminary figures. 1 Omission of figures for gold coin reflects change in reporting practice of Treasury and Federal Reserve banks (effective Jan. 31, 1934, when figure would have been $287,000,000). NOTE.—For figures of paper currency of each denomination in circulation see p. 499. Back figures.—See Annual Report for 1932 (table 52). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

452 FEDERAL RESERVE BULLETIN JULY 1934 MEMBER BANK RESERVE BALANCES [In millions of dollars. Averages of daily figures] Reserves held Excess reserves Month T m o b t e a a m n l— k b s e a i r ll Ne C w i ty Y o 2 rk r O e c s i t t e h i r e e v s r e 'C b o a u n n k t s ry' T m o b t e a a m l n — k b s e a r ll Ne C w i t Y y o ' rk r O e c s i t t e h i r e e v s r e "C b o a u n n k t s ry" 2932—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 12 443 345.5 193.4 119.6 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 1,083 911 440 525.8 283.2 206.9 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 March 3 April. 2,040 742 431 379.1 150.2 129.4 99.5 May 2,069 878 773 418 319.1 106.0 132.0 81.2 June 2,160 861 858 441 363.1 68.9 198.0 96.2 July 2,221 796 936 489 435.7 43.2 252.9 139.6 August 2,331 837 993 501 565.5 101.8 312.3 151. 3 September 2,451 896 1,056 499 674.5 155.2 371.5 147.8 October 2,557 893 1,135 529 758.4 149.0 437.9 171.5 November... 2,599 866 1,181 553 794.1 129.8 474.7 189.6 December 2,588 828 1,193 567 765.7 96.0 472.6 197.1 1934—January 2,740 897 1,221 622 865.7 146.8 476.6 242. 4 February 2,799 872 1,271 656 890.8 118.3 509.1 263. 4 March 3,345 1,227 1,422 696 1, 375.1 432.2 645.5 297.4 April 3,582 1,290 1, 536 756 1,541.0 454.6 736.4 350.1 May 1,323 1,598 773 1, 623. 5 484.7 778.4 360.4 1 Beginning with April 1933 the figures relate to licensed banks only. 2 Central reserve city banks only. 3 March data not available. Back figures.—See Annual Report for 1932 (table 69). MEMBER BANK DEPOSITS [In millions of dollars. Averages of daily figures] Net demand and time deposits Net demand deposits Time deposits Month a T b ll a o b m n t e a k r e l s m l - C Y N i o e ty w rk 2 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 b ll a o b m n t e k a r em s l- l - C Y N i o e ty r w k 2 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 b ll a o b m n t e k a r e s m l- l - C Y N i o e ty w rk 2 r O e c s i t t e h i r e e v s r e " b t C a r n o y k u " s n- I 1932—July. 24, 712 5,951 9,830 8,931 I 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 9,939 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 F M e a b r r c u h a 3 ry.,. 24,978 6,722 9,847 8,409 14,645 5,842 5,368 3,435 10, 333 4,479 4,974 April 21, 710 6, 120 8,520 7,071 13,078 5,331 4,756 2,990 8,633 788 3,764 4,081 May 22, 509 6,517 8,842 7,150 13,815 5,766 4,991 3,058 8,694 751 3,851 4,092 June 22,974 6,669 9,031 7,273 14, 241 5,923 5,162 3,156 8,732 746 3,869 4,117 July 23,160 6,424 9,309 7,427 14,100 5,597 5,329 3,174 9,060 826 4,253 August 23, 039 6,282 9,318 7,439 13,920 5,468 5,299 3,153 9,119 814 4,019 4,286 September- 23,140 6,318 9,345 7,477 14,027 5,516 5,333 3,178 9,113 802 4,012 4,299 October 23, 369 6,341 9, 453 7,575 14, 243 5, 535 5, 459 3,249 9,126 805 3,994 4,326 November^. 23, 486 6, 289 9.531 7,666 14, 347 5,475 5,543 3,330 9,139 814 4,336 December.. 23, 646 6,215 9,659 7,772 14, 567 5,452 5,691 3,424 9,078 763 4,348 1934—January.. 24,248 6,348 9,963 7,952 15,021 5,599 5,894 3,528 9,227 749 4,043 4,435 February. 24, 674 6.370 10,124 8,180 15.341 5, 624 6,048 3, 668 9,333 746 4,075 4,512 March 25, 288 6, 671 10, 303 8,314 15,851 5,943 6,172 3, 736 9,437 728 4,131 4,578 April 26,009 6,992 10, 568 8,449 16,457 6,256 6,384 3,817 9,552 736 4,184 4,632 May 26, 363 7,001 10, 787 8,575 16, 720 6, 283 6,541 3,896 719 4,246 4,679 I 1 Beginning with April 1933 the figures relate to licensed banks only. 2 Central reserve city banks only. 3 March data not available. Back figures.—See Annual Report for 1932 (table 69). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

453 JULY 1934 FEDERAL RESERVE BULLETIN ALL MEMBER BANKS—CLASSIFICATION OF LOANS AND INVESTMENTS [In millions of dollars] Loans to other customers Open-market loans Investments Total Total Purchased paper loans Call date i m n lo a v e n a e n n d s t s t s - L ba o t n o a k n s s Total s b c t a o u o S b n n r e c y e d - d k d s s b e c y s u S t r r e a e e - t d a e l s O e c u w a c u n t n u h r i s s e d r e e e e d r - - d Total A U b p a c l n n a e c i y c e t e a e i p s n - d t- p a c A n a b e y c p l c e e a - t- s - p C m c a o i p e a m r e l - r - Y L N k b o o i t r e e n o a o r r w n - s k s i Total m r s G U e i e t r e o c . i n S e n u v - . s t - - O r s i e t t c h ie u e s - r s b c t a o u o b s n r n e c y e d - d k d s s States abroad TOTAL—ALL MEMBER BANKS 1930—June 30_._ _. 35, 656 535 21,565 8,061 3,155 10, 349 3,113 170 71 507 2,365 10,442 4,061 6,380 10,666 Sept. 24 35,472 466 21, 010 7,864 3,163 9,982 3,262 205 62 523 2,472 10, 734 4,095 6,639 10,511 Dec. 31 34, 860 631 21,007 7,942 3,234 9,831 2,233 315 55 366 1,498 10,989 4,125 6,864 9,754 1931—Mar. 25 34,729 446 19, 940 7,423 3,220 9,298 2,454 361 101 361 1,630 11, 889 5,002 9,272 June 30 33,923 457 19, 257 7,117 3,218 8,922 2,103 389 113 384 1,217 12,106 5,343 6,763 8,56a Sept. 29 .--. 33, 073 599 18, 713 6,842 3,149 8,722 1,563 268 70 296 928 12,199 5,564 6,635 8,081 Dec. 31 30, 575 790 17, 570 6,290 3,038 8,242 901 146 41 140 575 11, 314 5,319 5,996 7,320 1932—June 30. 28,001 573 15, 267 5,292 2,894 7,081 747 313 34 122 278 11,414 5,628 5,786 5,916 Sept. 30 _._. 28,045 457 14, 497 5,086 2,885 6,527 970 407 34 115 414 12,121 5,755 5,770 Dec. 31 27,469 444 13, 905 4,848 2,862 6,195 855 375 30 93 357 12, 265 6,540 5,726 6,447 1933—June 30 »—_ _. 24, 786 330 11, 337 3.916 2,372 5,049 1,191 291 25 87 788 11,928 6,887 5,041 4,884 Oct. 25 24,953 297 11, 523 3; 809 2,364 5,350 1,238 303 24 164 748 11,894 6,801 5,093 4,713 Dec. 30 25,220 287 11,315 3,772 2,359 5,184 1,231 223 37 132 840 12, 386 7, 254 5,132 4,769 1934—Mar. 5 26, 548 225 11,093 3,644 2,382 5,067 1,387 350 26 157 855 13,842 8,667 5,175 4,606 NEW YORK CITY » 1930—June 30 8,798 196 4.308 2,022 157 2,129 2,091 144 1,883 2,203 1,147 1,056 3,983 Sept. 24 8,557 169 4,278 2,031 157 2,090 1,912 148 1,714 2,198 1,091 1,107 3,798 Dec. 31 8,582 283 4,338 2,137 147 2,054 1,525 188 1,281 2,435 1,239 1,197 3,550 1931—Mar. 25 8,473 154 4,007 1,960 150 1,896 1,651 199 1,367 2,662 1,466 1,196 3,397 June 30 8,287 150 3,839 1,897 160 1,782 1,497 296 1,063 2,801 1,656 1,145 3,026 Sept. 29 8,253 250 3,850 1,816 152 1,881 1,121 201 839 3,032 1,830 1,202 2,780 Dec. 31 7,460 374 3,694 1,728 153 1,813 695 107 542 2,697 1,768 928 2,474 1932—June 30 6,715 260 2,856 1,343 160 1,353 565 262 258 3,033 2,008 1,025 1,757 Sept. 30 ___. 7,112 203 2,638 1,300 154 1,184 763 341 391 3,508 2,429 1,079 1,811 Dec. 31 _ 7,327 216 2,621 1,247 160 1,214 701 330 337 3,789 2,603 1.186 1,699 1933—June 30 »__._ 7,133 162 2,297 1,082 157 1,057 964 224 720 3,709 2,551 1,158 1,888 Oct. 25 6,971 143 2,436 1,032 149 1,254 891 233 624 3,501 2,320 1,181 1,728 Dec. 30 6,995 146 2,395 1,034 148 1,213 912 170 706 3,542 2,362 1,179 1,824 1934—Mar. 5 7,351 112 2,321 156 1,180 276 687 3,932 2,768 1,164 1,724 OTHER RESERVE CITIES 1930—June 30 13,701 277 9,029 3,811 3,693 710 18 301 353 3,685 1,686 1,999 4,306 Sept. 24 13,971 235 8,726 3,632 3, 567 1,064 54 337 643 3,947 1,785 2,161 4,387 Dec. 31 13, 758 286 8,906 3,656 3,620 531 122 212 167 4,035 1,727 2,308 3,991 1931—Mar. 25 13,965 235 8,409 3,366 3,423 645 158 212 227 4,676 2,313 2,364 3,729 June 30 13,567 247 8,100 3,188 3,291 470 91 189 124 4,750 2,408 2,342 3,459 Sept. 29 13,016 284 7,845 3,092 3,168 326 67 167 56 4,561 2,301 2,260 3,317 Dec. 31 12,115 347 7, 407 2,806 3,063 135 -\5 62 16 4,226 2,133 2,093 3,050 1932—June 30 11,045 254 6,519 2,403 2.709 118 38 62 7 4,154 2,187 1,966 2,585 Sept. 30 10,979 205 6,196 2,304 2,486 151 58 65 14 4,427 2,466 1,961 2,456 Dec. 31 10,535 178 5,879 2,169 2,312 115 44 46 12 4,362 2,462 1,900 2,298 1933—June 30 * 9,780 129 4,846 1,702 1,984 184 63 61 58 4,621 2,867 1,754 1,846 Oct. 25. _. 9,951 120 4,912 1,660 2,108 274 68 91 100 4,645 2,889 1, 757 1,836 1934— D M ec a . r . 3 5 0 1 1 0 0 . , 1 8 5 1 7 6 10 7 3 9 4 4 f , 7 6 9 6 7 9 1 1 . , 6 5 3 6 0 6 2 1 . , 0 9 1 4 6 5 2 30 5 6 8 5 6 0 4 78 1 1 1 3 2 8 5 5 , , 0 7 0 6 0 3 3 3 . , 2 9 0 5 9 4 1 1 , , 7 8 9 0 0 9 1 1, , 8 7 0 5 9 3 "COUNTRY" BANKS 1930—June 30 13,157 8,229 2,227 1,475 4,527 312 171 129 4,555 1,229 2,367 Sept. 24 12,944 8,007 2,200 1,480 4,326 286 164 115 4,589 1,219 3,370 2, 326 Dec. 31 12, 519 7,762 2,149 1,455 4,158 177 120 49 4,519 1,159 3,359 2, 213 1931—Mar. 25 12,290 7,524 2,097 1,449 3,978 158 114 36 4,550 1,224 3,326 2,147 June 30 12,068 7,318 2,031 1,437 3,849 135 101 30 4,555 1,279 3,276 2,078 Sept. 29_ 11,805 7,018 1,935 1,411 3,673 116 81 32 4,606 1,433 3,172 1,986 Dec. 31. 10,999 6,469 1,756 1,346 3,367 71 48 16 4,392 1,418 2,974 1,796 1932—June 30 ... 10, 240 5,892 1,546 1,328 3,018 64 36 13 4,226 1,432 2,794 1,574 Sept. 30 9,954 5,663 1,481 1,324 2,857 55 36 4,187 1,471 2,715 1,603 Dec. 31 9,607 5,405 1,432 1,304 2,669 39 28 4,114 1,474 2,640 1,450 1933—June 30 s 7,873 4,194 1,132 1,055 2,007 43 27 3,598 1,469 2,129 1,150 Oct. 25 8,031 4,175 1,118 1,070 1,987 73 46 3,748 1,592 2,156 1,148 Dec. 30.. 8,068 4,123 1,108 1,061 1,955 62 34 3,845 1,683 2,162 1,136 1934—Mar. 5. 8,381 4,103 1,093 1,068 1,942 95 54 4,148 1,946 2,202 1,12S< 1 Loans (secured by stocks and bonds) to brokers and dealers in securities at New York City. 2 Beginning June 30, 1933, figures relate to licensed banks only. 8 Central reserve city banks only. Back figures.—This classification of loans is not available for dates prior to Oct. 3,1928, see Annual Report for 1931 (table 53), but comparable figures of total loans secured by stocks and bonds are given for June 30,1925-28, in the board's Annual Report for 1928 (table 52); for separate figures of United States Government securities and other securities back to 1914, see Annual Report for 1932 (table 73). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

454 FEDERAL RESERVE BULLETIN JTJLY 1934 ALL BANKS IN THE UNITED STATES [Includes national banks, State commercial banks and trust companies, mutual and stock savings banks, and all private banks under State supervision] LOANS AND INVESTMENTS [In millions of dollars! All banks Member banks Nonmember banks Mutual savings banks Other nonmember banks Date Invest- Invest- Total Loans ments Total Loans ments Total Loans I m nv e e n s t t s - Total Loans I m nv e e n s t t s - 1929—Mar. 27 58,019 40,557 17,462 35,393 24,945 10,448 i 9,390 i 5,694 i 3,696 13,236 9,918 3,317 June 29.... 58,474 41,512 16,962 35,711 25,658 10, 052 9,556 5,892 3,664 13,207 9,961 3,246 Oct. 4 58,835 42,201 16,634 35,914 26,165 9,749 i 9,556 » 5,892 i 3,664 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 i 9,463 1 5,945 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 i 9, 747 i 6,009 i 3, 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 i 9,987 i 6, 068 i 3,920 11,208 7,906 3,302 June 30 55, 021 35,384 19,637 33,923 21,816 12,106 10, 506 6,169 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 i 6,130 i 4,186 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 1933-June 302— 40,089 22, 215 17,874 24, 786 12, 858 11,928 10,044 5,941 4,103 5,258 3,415 1,843 Oct. 25 3 24,953 13,059 11,894 Dec. 30 40, 477 22,077 18, 400 25, 220 12,833 12,386 9,989 5,909 4,080 5,269 3,336 1,934 1934—Mar 5 3 26,548 12, 706 13,842 1 Figures of preceding call carried forward. 8 Beginning June 30, 1933, all figures (other than for mutual savings banks) relate to licensed banks only, with some exceptions as to nonmember banks. 3 Nonmember bank figures not available. DEPOSITS, EXCLUSIVE OF INTERBANK NUMBER OF BANKS DEPOSITS [In millions of dollars] Member banks Non b m an e k m s ber Nonmember banks Date Total Other Date All banks M b e a m nk b s er M sav u i t n u g a s l no O nm the e r m- Total ti N o a n - al State M s b av a u n i t n u k g a s s l m n b e o e m n r - banks ber banks banks 1929— J D O M u e c n c t a . . e r . 4 3 2 2 9 1 - 7 _ — — . 5 5 5 55 4 3 5 , , , , 8 5 1 2 5 8 4 8 2 0 5 9 3 3 3 3 3 3 2 3 , , , , 2 0 8 2 8 0 6 1 4 4 5 5 i 8 8 8 , , , 9 9 8 1 8 4 6 3 9 1 1 1 12 2 2 3 , , , , 4 1 5 5 8 9 0 8 1 3 7 4 1929— J D O M u e c n c a t . e . r . 4 3 2 2 1 9 7 2 2 2 2 4 5 4 5 , , , , 1 9 3 6 1 5 4 3 0 1 1 0 8 8 8 8 , , , , 5 7 7 6 2 5 0 1 2 5 7 6 7 7 7 7 , , , , 4 4 5 5 0 6 6 3 3 9 8 0 1 1 1 1 , , , , 1 1 1 1 1 4 7 8 9 8 7 6 1 1 6 6 6 6 0 1 1 1 9 1 2 1 1 1 1 1 5 5 5 5 , , , , 4 9 7 7 9 7 9 2 9 4 2 4 1930—Mar. 27— 53,185 32,082 18,916 12,187 June 30--. 54,954 33,690 9,197 12, 067 1930—Mar. 27 24,223 8,406 7,311 1,095 1609 15, 208 Sept. 24... 52,784 31, 839 i 9,197 11,748 June 30 23,852 8,315 7,247 1,068 606 14,931 Dec. 31. _. 53,039 32, 560 9,507 10,972 Sept. 24 23,590 8,246 7,192 1,054 1606 14, 738 Dec. 31 22, 769 8,052 7,033 1,019 603 14,114 1931— J M un a e r . 3 2 0 5 -. — _ 5 5 1 1 , , 7 42 8 7 2 3 3 1 1 , , 1 5 5 6 3 6 i 1 0 9 , , 0 1 5 7 07 1 1 0 0 , , 1 7 9 6 9 7 1931—Mar. 25 22,372 7,928 6,930 998 1603 13,841 Sept. 29— 49,152 29,469 110, 017 9,666 June 30 21,903 7,782 6,800 982 600 13, 521 Dec. 31__. 45,821 27,432 10,105 8,284 Sept. 29 21,294 7,599 6,653 946 1600 13,095 Dec. 31 19,966 7,246 6,368 878 597 12,123 1932— S J e u p n t e . 3 3 0 0 — .- 4 41 1 , , 9 9 4 6 2 3 2 24 4 , , 9 7 0 5 3 5 11 1 0 0 , , 0 0 2 2 0 0 7 7 , , 0 1 2 8 0 8 1932—June 30 19,046 6,980 6,145 835 594 11,472 Dec. 31..- 41,643 24, 803 10, 022 6,818 Sept. 30 .- 18, 794 6,904 6,080 824 1594 11,296 Dec. 31 18, 390 6,816 6,011 805 594 10,980 1933— O Ju ct n . e 2 3 5 0 3 2 . - . 38, 011 2 2 3 3 , , 4 3 5 3 3 8 9,713 4,961 1933—June 302 14,530 5,606 4,897 709 576 8,348 Dec. 30--. 38, 646 r23, 771 9,711 '5,165 D O e c c t . . 2 3 5 0 3 15, 212 5 6 , , 8 0 1 1 8 1 5 5 , , 1 0 5 5 4 2 7 8 6 5 6 7 581 8,620 1934—Mar. 53— 25, 293 1934—Mar. 53 6,206 5,288 918 For footnotes see table above. •- Revised. For footnotes see table above. NOTE.—Prior to Dec. 30,1933, member bank figures include interbank deposits not subject to immediate withdrawal which aggregated $103,- 000,000 on that date. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

455 JULY 1934 FEDERAL RESERVE BULLETIN REPORTING MEMBER BANKS IN LEADING CITIES [In millions of dollars] Total New York City Othe c r i t l i e e a s ding Loans and investments Loans and investments Date Bor- Bor- T lo o a t n a s l Bor- Investments owings Investments rowings and in- rowings Loans All at F.R. Loans All at F.R. vest- at F.R. Total on se- other banks Total on se- other banks ments banks curities loans Total U iu . r S i . t s ie e s - curities loans Total c U u . r S i . t i s e e s - Jan. 3— 16,595 3,620 4,765 8,210 5,205 6,707 1,744 1,670 3,293 2,187 25 Jan. 10- 16,388 3,497 4,712 8,179 5,210 6,536 1,624 1,644 3,268 2,170 9,852 21 Jan. 17- 16,447 3,486 4,732 8,229 5,223 6,579 1,620 1,659 3,300 2,185 9,868 21 Jan. 24.. 16, 396 3.498 4,713 8,185 5,245 6,569 1,646 1,666 3,257 2,201 9,827 20 Jan. 31- 17,121 3,609 4,740 8,772 5,786 1,748 1,718 3,520 2,421 10,135 13 Feb. 7._ 17,082 3,587 4,713 8,782 5,847 6,964 1,729 1,691 3,544 2,485 10,118 12 Feb. 14. 17,092 3,531 4,755 8,806 5,867 6,922 1,677 1,734 3, 511 2,448 10,170 10 Feb. 21. 17,494 3,630 4,718 9,146 6,199 7,096 1,769 1,707 3,620 2,553 10,398 11 Feb. 28. 17,400 3,520 4,665 9,215 6,249 7,006 1,669 1,662 3,675 2,585 10, 394 12 Mar. 7— 17.425 3,495 4,673 9,257 6,278 7,069 1,649 1,661 3,759 2,668 10, 356 10 Mar. 14.. 17,513 3,593 4,688 9,232 6,229 7,213 1,733 1,673 3,807 2,704 10, 300 10 Mar. 21.. 17. 526 3,553 4,643 9,330 6,272 7,199 1,687 1,637 3,875 2,717 10, 327 9 Mar. 28.. 17,472 3,514 4,647 9,311 6,227 7,193 1,663 1,629 3,901 2,720 10,279 9 Apr. 4... 17, 508 3,569 4,668 9,271 6,175 7,296 1,720 1,655 3,921 2,717 10,212 Apr. 11.. 17,611 3,612 4, 698 9,301 6,234 7,405 1,756 1,675 3,974 2,804 10, 206 Apr. 18.. 17,513 3,580 4,623 9,310 6,226 7,238 1,723 1,601 3,914 2,742 10, 275 Apr. 25.. 17, 471 3,516 4,604 9,351 6,282 7,138 1,674 1,594 3,870 2,716 10, 333 May 2... 17, 462 3,577 4,559 9,326 6, 255 7,142 1,729 1,561 3,852 2,699 10,320 May9._. 17, 329 3,554 4,568 9,207 6,249 7,055 1,718 1,566 3,771 2,727 10,274 May 16.. 17, 288 3,505 4,563 9,220 6,254 7,022 1,663 1,569 3,790 2,738 10, 266 May 23.. 7, 257 3,468 4,537 9,252 6,262 7,001 1,644 1,548 3,809 2,752 10,256 May 30.. ,306 3,476 4,550 9,280 6,262 7,034 1,646 1,558 3,830 2,760 10, 272 June 6... ', 397 3,557 4,540 9,300 6,276 7,141 1,727 1,550 3,864 2,791 10, 256 June 13.. ', 370 3, 556 4,533 9,281 6,243 7,144 1, 728 1,552 3,864 2,802 10, 226 June 20_. ,663 3,571 4,484 9,608 6,582 7,211 1,741 1, 521 3,949 2,873 10, 452 June 27.. ',737 3,529 4,485 9,723 6,665 7,265 1,711 1,525 4,029 2,926 10,472 Back figures.—See BULLETIN for August 1933, pp. 519-523. 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 millions of dollars] For ac- For count of For ac- From New From private Month or date Total own ac- out-of- count of Total an Y d o r t k ru s b t a c n o k m s - b fo a r n ei k g s n , b b r a o n k k e i r n s g , count ba to n w k n s * others End of month panies agencies, etc. 1933—June 755 712 36 July 919 806 105 1933 1934 1933 1934 1933 1934 August 877 747 122 September- 847 741 98 October 779 663 111 January... 359 903 270 839 64 November- 723 611 106 February. _ 360 938 298 862 76 December.. 759 631 122 March 311 981 247 873 108 1934—January 802 657 137 A J M u p n a r y e il 3 5 7 2 2 8 2 9 0 1 1 1 , , , 0 0 0 8 8 1 8 2 6 2 4 6 6 8 1 9 9 7 1 3 2 1 1 1 1 0 0 6 4 2 A F M M e p a a b r r y i r c l u h ary... 9 9 7 3 5 7 7 8 7 7 3 1 3 6 1 3 6 6 1 1 1 1 4 5 4 6 9 6 8 3 July 916 822 June 1,016 845 165 A Se u p g t u e s m t ber. 9 8 1 9 7 7 8 80 4 6 1 J J u u n n e e 1 6 3 - . _ 1,0 9 1 97 1 8 8 2 4 5 0 1 1 6 6 4 4 N O o c v to e b m e b r e .. r . . 7 7 8 7 9 6 7 7 0 1 6 2 J J u u n n e e 2 2 7 0 . . 1 1 , , 0 01 4 7 0 8 8 7 4 0 7 1 1 6 6 6 6 December. 776 > Member and nonmember banks outside New York City (domestic banks only). Back figures.—See Annual Report for 1932 (table 84). Back figures.—See Annual Report for 1932 (table 83). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

456 FEDERAL RESERVE BULLETIN JULY 1934 ACCEPTANCES AND COMMERCIAL PAPER BANKERS' ACCEPTANCES OUTSTANDING (DOLLAR CLASSES OF BANKERS' ACCEPTANCES (DOLLAR ACCEPTANCES) ACCEPTANCES) [In millions of dollars] [In millions of dollars] H er e a l l d R b e y s e F r e v d e - Held by b a a n c k c s epting banks _ Total For Held rJ im aseaB on a s e e x d - End of month out- ac- by End of month Total ports stand- For count others into from ing own of for- _, . Own Bills U S U.S. ac- eign lotal bills bought count correspondents 1932—February.. _ 919 76 312 343 175 168 189 OUTSTANDING March 911 36 335 377 155 222 163 April 879 16 292 455 188 268 115 1933—May 669 77 174 May. . . 787 4 183 510 225 286 90 June 687 80 168 June 747 36 98 518 200 318 96 July 738 86 168 Tuly._ ... 705 12 59 563 197 366 70 August 694 95 160 August 681 3 49 574 198 376 55 September 715 103 171 September.. 683 2 43 573 159 414 64 October 737 99 185 October 699 3 39 605 199 406 52 Jsjvember.. __ _ 758 98 200 November.. 720 4 32 655 268 386 28 December - 764 94 207 December... 710 4 40 604 224 380 62 1934—January.. __ ... 771 89 225 1933—January 707 2 41 626 256 370 38 February 750 98 203 February... 704 307 30 325 201 124 42 March 685 103 186 March 671 280 45 261 153 108 85 April 613 103 164 April . 697 163 43 404 206 199 86 May 569 100 150 May 669 13 36 505 229 276 115 June 687 41 36 487 201 287 123 HELD BY F. R. BANKS July 738 2 37 552 248 304 147 (OWN ACCOUNT) 1 August _ 694 1 40 499 252 247 154 September.. 715 1 41 517 236 282 156 1933—May 13 2 3 October 737 1 31 592 271 321 112 June... 41 7 6 November __ 758 18 3 599 273 326 138 July 2 1 December... 764 127 4 442 223 219 190 August 1 S September 1 1934—January 771 105 4 567 255 312 95 October 1 February... 750 56 5 581 266 315 108 November . 18 7 March 685 23 5 576 252 324 81 December 127 23 April 613 3 4 536 236 299 70 May 569 0) 3 507 226 281 59 1934—January 105 18 February 56 11 March 23 5 1 Less than $500,000. April __ . 3 1 Source: For acceptances outstanding (and held by accepting banks), May (2) American Acceptance Council. Back figures.—SQQ Annual Report for 1932 (table 91). ACCEPTANCES PAYABLE IN FOREIGN CURRENCIES- HOLDINGS OF FEDERAL RESERVE BANKS [In thousands of dollars] End of month 1931 1932 1933 1934 January.. . 36,119 33,444 29, 036 5,977 February.. 23,958 33,478 28,997 5,887 March 1,063 30, 778 24, 788 5,275 April 1,074 30, 736 7,181 5,070 May 1,073 30,837 6, 981 3,125 June 10, 551 30, 762 7,089 5,075 July 34, 371 30, 645 6,821 August 145, 215 30, 834 6,199 September. 48, 804 30,849 6,068 October.. _ 33, 501 30, 659 5,686 November. 33,386 30, 652 5,841 December . 33, 429 29, 489 6,033 Back figures.—See Annual Report for 1932 (table 24). 333 Based Based on goods on stored in goods United stored States in (ware- Dollar foreign house ex- councredits) change tries or or shipped shipped bebetween tween domestic foreign points points 185 9 225 217 g 213 255 10 219 229 4 206 237 4 199 253 5 195 278 4 180 277 4 182 277 5 175 261 4 184 226 3 168 186 3 158 164 3 152 2 (2) 6 11 (2) 16 1 (2) (•) (2) (2) 2 4 (2) 4 22 39 1 39 21 30 2 31 11 15 2 16 6 7 2 4 1 2 i Total holdings of Federal Reserve banks include a small amount of unclassified acceptances. » Less than $500,000. Back figures.—See Annual Report for 1932 (tables 88 and 23). COMMERCIAL PAPER OUTSTANDING [In millions of dollars] End of month 1931 1932 1933 1934 January 327 108 85 108 February _ 315 103 84 117 March __ 311 106 72 133 April 307 108 64 139 May 305 111 60 141 June 292 103 73 July 289 100 97 August 271 108 107 September 248 110 123 October 210 113 130 November 174 110 133 December _ 118 81 109 Back figures.—See Annual Report for 1932 (table 87). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

457 JULY 1934 FEDEKAL RESERVE BULLETIN FEDERAL RESERVE BANK RATES OPEN-MARKET RATES RATES ON REDISCOUNTS FOR AND ADVANCES TO SHORT-TERM RATES IN NEW YORK CITY MEMBER BANKS [Percent per annum] Rediscounts and advances un- Advances under sec. der sees. 13 and 13a of the 10b of the Federal Federal Reserve Act Reserve Act Prevailing rate on- Average rate Average yield Federal Reserve bank N Bo ew st o Y n o . rk _ e R J ff u a e l t c y e t 2 I i o 1 X n n F F D e e b b a . . l t i e s h e 8 2 e s , , d t 1 1 a 9 9 b 3 3 - 4 4 o P u r s e r v a 2 2 i t K - ee R J ff u a e l t c y e t 4 4 i o 1 n n O O D c c a t t l t . , i e s h e 2 e s 2 0 d t , , a 1 1 9 9 b 3 3 - 3 3 Month or week m m p P 4 c a o r e o t p i n o r m m c e t 6 i - r h e a , s l a a P b c d n e a r c 9 a r c i n e s m 0 y e k p ' s s e - t , - d l T o a i 9 a y m n 0 s s e 1 , N C e a w ll lo n a e R n w e s - a 2 l m T b U o u r i n e . l 3 r S l y t a s h . s , - s3 c T c 3 n U e a u a r o r t n e . t r t o t S e i a y d e f . s s s i 6 , - - Philadelphia 2y2 Nov. 16,1933 3 4 Oct. 20,1933 months Cleveland 2 Feb. 3,1934 2K 4 Oct. 21,1933 Richmond 3 Feb. 9,1934 3M 5 Mar. 16,1933 A Ch tl i a c n ag ta o 3 VA F O e c b t . . 1 2 0 1 , , 1 1 9 9 3 3 4 3 3 3 K2 4 4 M J O u c ly t. 1 1 5 6 , , 1 1 9 9 3 3 3 3 June 1933 1.00 1.00 .26 St. Louis VA Feb. 8,1934 3 VA Oct. 21,1933 July.. %-X H-IX 1.00 1.00 .35 Minneapolis 3 Mar. 16,1934 3H 5 Mar. 14,1933 August IX HrX l -IX .98 .98 .26 Kansas City 3 Feb. 9,1934 3H 5 Mar. 23,1933 September j -iX .75 .75 .11 Dallas 3 Feb. 8,1934 3M 4 Mar. 12,1934 October j IX x-x y* .75 .75 .13 San Francisco._ 2 Feb. 16,1934 2V2 4 Oct. 19,1933 N D o ec v e e m m b b e e r r I ! IX . .9 7 4 5 . . 9 7 4 5 .38 RATES ON DISCOUNTS FOR AND ADVANCES TO INDIVID- 1934 UALS, PARTNERSHIPS, AND CORPORATIONS January X l -IX 1.00 1.00 February X 1.00 1.00 .63 Advances secured by March -m H- H H-l 1.00 1.00 .09 Discounts and advances direct obligations of April -1M H- H 1.00 1.00 under par. 3 of sec. 13 the United States May._ l H- H-l 1.00 1.00 .07 s o e f r v t e h e A ct Federal Re- 1 (l 3 a s o t f p t a h r e a g F r e a d p e h r a o l f R se e c - . June 3/4-l H-l 1.00 LOO Federal Reserve serve Act) bank Week ending- June 2 i 1.00 1.00 e R J ff u a e l c t y e t i o 1 n n Da l t i e s h e e s d tab- e R f J f u a ec t l e y t i o 1 n n Da l t i e s h e e s d tab- J J u u n n e e 9 16 3-1- i 1 H H - - l l 1 1. . 0 0 0 0 1 L . O 00 O June 23 M- H H-l 1.00 1.00 June 30 H-l W- H H-l 1.00 LOO Boston 6 Aug. 11,1933 4 Oct. 20,1933 New York 6 Aug. 10,1933 Feb. 8,1934 1 Stock exchange 90-day time loans. Philadelphia 6 Aug. 12,1933 4 Oct. 20,1933 3 Stock exchange call loans; new and renewal rates. Cleveland _ 6 Aug. 20,1933 4 Oct. 21,1933 3 Average rate of discount on issues sold by U.S. Treasury within Richmond _ 6 Aug. 10,1933 4 Feb. 19,1934 pe 4 r i C od h . ange of issue on which yield is computed. Atlanta 5 Mar. 20,1934 4 Mar. 17,1934 «Negative yield. Chicago 6 Aug. 13,1933 4 Oct. 16,1933 Back figures.—See Annual Report for 1932 (tables 56 and 57). St. Louis 6 Aug. 10,1933 Mar. 15,1933 Minneapolis 6 do.... . 4H Apr. 15,1933 RATES CHARGED CUSTOMERS BY BANKS IN Kansas City 6 Aug. 20,1933 4 Feb. 23,1934 PRINCIPAL CITIES Dallas 6 Sept. 8,1933 4 Mar. 12,1934 San Francisco. 6 Sept. 2,1933 4 Oct. 19,1933 [Weighted averages of prevailing rates] BUYING RATES ON ACCEPTANCES [Buying rates at the Federal Reserve Bank of New York] New York City a 8 n d o th ea er s te n r o n r t c h i e ti r e n s 2 w 7 s e o st u e t r h n e r c n i ti a e n s d Month Maturity e R J ff u a e t l c e y t i o 1 n n Da l t i e s h e e s d tab- Pre ra v t i e ous 1932 1933 1934 1932 1933 1934 1932 1933 1934 January 4.71 4.12 3.58 5.07 4.89 4.65 5.61 5.60 5.40 February 4.71 4.11 3.43 5.13 4.84 4.49 5.61 5.56 5.39 1-15 days Oct. 20,1933 1 March 4.72 4.88 3.31 5.14 5.39 4.52 5.64 5.66 5.40 16-30 days do 1 April 4.69 4.33 3.39 5.10 5.09 4.52 5.63 5.68 5.34 31-45 days X do 1 May 4 55 4.24 3.42 5.14 4.99 4.39 5.64 5.66 5.28 46-60 days do 1 June 4.61 4.10 3.30 5.13 4.97 4.30 5.62 5.62 5.19 61-90 days . do 1 July 4.42 3.93 5.05 4.82 5.63 5.54 91-120 days... do . .. 1 August 4.45 3.97 5.12 4.68 5.68 5.53 121-180 days.. do IX S O e ct p o t b e e m r ber- 4 4 . . 3 3 0 5 3 3 . . 7 7 9 6 4 5 . . 9 0 6 3 4 4 . . 6 5 5 1 5 5 . .5 6 6 3 5 5. . 5 5 0 5 November... 4.12 3.52 4 88 4 54 5.55 5.42 NOTE.—Rates on prime bankers' acceptances, Higher rates may be December 4.22 3.48 4 88 4.59 5.60 5.43 charged for other classes of bills. Back figures.—See Annual Report for 1932 (table 54). Back figures.—See Annual Report for 1932 (table 59)8 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

458 FEDERAL RESERVE BULLETIN JULY 1934 TREASURY FINANCE UNITED STATES GOVERNMENT DEBT VOLUME AND KIND OF SECURITY MATURITIES [In millions of dollars] [In millions of dollars] Interest-bearing debt Interest bearing Nonin- Total terest End of month ( d g e r b o t s ) s Total Bonds Notes C { ^H' Bills b i e n a g r- Total BondsJ Notes C ic e a r t t e if s - Bills Outstanding June 30, 1934— 1932 Total 26, 480 16, 510 6,932 1,635 1,404 November- 20,807 20,476 14,257 3,539 2,038 643 331 Obligations maturing: December. 20,805 20,448 14,223 3,299 2,284 642 357 Before Oct. 1, 1934 1,456 2 51 28 525 853 1933 Oct. 1-Dec. 31, 1934 2,790 3 1, 246 992 551 Jan. l-June30, 1935 945 945 J F a e n b u ru a a ry ry .. . . . 2 2 0 0 , , 9 8 3 0 5 2 2 20 0 , , 4 5 5 8 4 4 1 1 4 4 , , 2 2 3 3 0 0 3 3, , 5 2 7 9 6 8 2 2 , , 2 13 8 8 5 6 6 4 4 1 1 3 3 4 5 S 0 J 1 u 93 lv 6 1-Dec. 31, 1935 1,3 7 3 7 0 2 49 1,2 7 8 7 1 2 March 21, 362 20,992 14,230 3,575 2,369 817 371 1937 1,749 1,749 April 21,441 21,087 14, 230 3,576 2,363 918 354 1938 4,492 3,142 1,350 May 21,853 21,469 14, 223 4,148 2,119 979 385 1939 529 529 June 22, 539 22,158 14, 223 4,780 2,200 955 381 1941 834 834 July 22, 610 22, 240 14, 239 4,801 2,246 954 370 1943 898 898 August 23,099 22, 723 15,074 5,153 1,543 953 376 After 1943 9,612 9,612 September. 23,051 22,672 15,074 5,151 1,495 952 379 Other obligations i 1,074 678 278 118 October 23,050 22, 669 15,074 5,150 1,493 952 381 November. 23, 534 23,161 15, 569 5.148 1,492 952 373 1 Issues classified as of date of final maturity; most issues are callable December. 23,814 23,450 15, 569 5,125 1, 753 1,003 364 at earlier dates. Amount callable before July 1,1935, and not yet called, 1934 $5,801,000,000, including certain pre-war issues that are held as collateral for circulating notes. January. __ 25,071 24, 720 15,600 5,626 2,280 1,214 351 J Approximate amount of 4th Liberties called for redemption Apr. 15, February.. 26, 055 25, 707 15, 579 6,472 2,278 1,378 '348 1934, and not yet redeemed. March 26,157 25,698 15, 579 6, 925 1,816 1,378 459 3 Approximate amount of 4th Liberties called for redemption Oct. 15, April 26,118 25,599 15, 718 6,689 1,814 1,378 519 1934. May 26,155 25, 588 15,695 6,678 1,812 1,404 567 < Includes the 2 percent Consols of 1930, which are held as collateral for June 27,053 26, 480 16, 510 6,932 1,635 1,404 573 circulating notes, and such issues as Postal Savings bonds, retirementfund notes, and adjusted-service certificate-series, in which special funds r Revised. are invested. SUMMARY OF TREASURY OPERATIONS [In millions of dollars. On basis of daily statement of United States Treasury] Receipts Expenditures Excess of Inc d re u a ri s n e g o r p e d r e i c o r d ease receipts or ex- Period Internal revenue Customs pendi- General Total i Inc ta o x me Other l m an a is n e c o d e u l s - Total« General3 g E e m nc e y r - 4 tures ba fu la n n d ce G de ro b s t s Fiscal year ending: June 1932 2,121 1,057 504 445 4,862 3,973 768 -2,741 -55 +2,686 June 1933 2,238 T46 858 475 4,845 3,404 1,277 -2, 607 +445 +3,052 June 1934 6 6,089 818 1,823 475 6 8, 884 2,741 4,004 -2, 795 +1, 720 +4,514 1932 November 125 15 67 33 283 235 37 -158 —165 —6 December 352 141 73 128 386 297 76 -34 -35 —1 1933 134 16 70 30 357 226 112 -223 -227 -4 February - 121 24 64 23 360 200 147 -239 -106 +133 March 283 181 67 24 439 273 157 -156 +271 +428 April 131 19 69 25 461 338 109 -331 -252 +79 167 16 94 47 456 249 192 -289 +124 +412 June - 306 147 106 33 494 388 82 -188 +498 +685 July 179 13 113 37 278 196 75 -99 -28 +71 August 197 14 135 38 321 171 139 -123 +366 +489 September 333 136 146 39 339 248 81 -6 -54 -48 October . - 273 10 195 50 509 396 104 -236 -236 0 November . ._ 219 19 127 63 505 201 294 -286 +198 +484 December 342 133 158 41 703 227 463 -361 -81 +280 1934 January 229 10 163 38 972 148 808 -743 +511 +1, 254 February . 6 3, 024 23 149 34 644 188 447 +2,380 +3,364 +984 March . 6 435 232 167 21 624 160 450 -189 -84 +105 April 6 199 15 137 30 e 2, 684 305 370 -2,485 -2, 524 -39 May . 6 247 25 162 50 556 191 350 -309 —272 +37 June 6 411 188 170 33 749 310 423 -338 +560 +898 i Total includes trust and contributed fund receipts not shown separately. > Total includes trust and contributed fund expenditures not shown separately. * Includes also special fund expenditures and excludes public-debt retirement. Beginning July 1933, on the basis of a new classification of accounts, certain items formerly included in general expenditures are carried as emergency expenditures. * Prior to July 1933 emergency expenditures include only net expenditures for the Reconstruction Finance Corporation; other expenditures, later classified as emergency, are included in general expenditures 6 Includes increment, amounting to $2,808,000,000 in February, $2,000,000 in March, and small amounts in April, May, and June, resulting from reduction in the weight of the gold dollar. 6 Includes $2,000,000,000 charged against increment on gold and transferred to exchange stabilization fund. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

459 JULY 1934 FEDERAL RESERVE BULLETIN RECONSTRUCTION FINANCE CORPORATION LOANS, SUBSCRIPTIONS, AND ALLOCATIONS [Amount outstanding at end of month. In thousands of dollars] Proceeds not yet Proceeds disbursed, less repayments disbursed M 1 ay 93 3 31, Fe 1 b 9 . 3 2 4 8, Ma 19 r. 3 4 31, A 1 p 9 r 3 . 4 3 0 v y M 19 a 3 y 4 3 v 1 Ju 19 n 3 e 4 3 v 0, M 1 a 9 r 3 . 4 31 Ap 1 r 9 . 3 4 30, LOANS AND SUBSCRIPTIONS Loans under sec. 5 of the Reconstruction Finance Corporation Act, as amended: Banks and trust companies (including receivers, liquidating agents, and conservators) 1 736,928 700, 278 657,388 627, 460 613,397 598,924 187,815 208, 091 Building and loan associations * __ 83,585 60,141 55, 854 50,799 45,495 40, 442 1,890 412 Insurance companies 73, 780 54, 249 51, 700 38, 575 35,929 34, 748 160 157 Mortgage-loan companies * _. 110, 257 167, 610 161, 574 188, 008 191, 393 192,150 123,259 105,973 Credit unions 434 499 494 489 484 433 Federal land banks.._ 20, 300 193,618 193,618 193, 618 193,618 193, 618 Joint-stock land banks 7,535 13,404 11,731 10, 618 10,323 9,308 3,044 1,398 Agricultural credit corporations __ 2,125 1,270 1,141 903 800 800 Regional agricultural credit corporations 93,196 31,169 24,859 16, 717 10, 690 7,199 1,956 2,169 Livestock credit corporations 4,603 2,119 1,924 1,719 1,677 1,717 309 259 Railroads (including receivers) 340,855 345, 205 345,181 344,934 344,716 353, 385 5,227 13, 366 State funds for insurance of public moneys ... 5,092 4,214 2,764 1,958 3,476 Processors or distributors for payment of processing taxes 13 13 9 Total.. 1, 473, 598 1, 574, 667 1, 509, 691 1,476,608 1, 450, 489 1,436,208 323,664 331, 826 Other loans: Self-liquidating projects, sec. 201 (a) (including repairs to property damaged by earthquakes, etc.) 27,231 71,220 80,195 82,666 88, 560 93,009 128,851 126,128 Financing exports of agricultural surpluses, sec. 201 (c)—. 10, 076 11,073 12,330 12, 752 13, 948 11,361 10, 029 Financing agricultural products, sec. 201 (d) 2,723 4,371 4,444 4,257 4,089 4,114 4,830 4,662 Commodity credit corporation 153, 525 161, 772 163,078 167,945 202, 559 269,755 262,207 Loans on preferred stock of banks ~i~250' 14,745 16,167 16,676 19,062 21, 353 8,286 6,380 Loans on preferred stock of insurance companies 4,375 4,375 15,875 15, 875 15,875 7,500 Loan to Secretary of Agriculture for purchase of cotton. _ Loans to drainage, levee, and irrigation districts 2,414 2,525 2,643 4,156 4,636 30,123 31,006 Total.. 31, 204 260, 726 280, 551 297, 525 312, 439 355, 493 460, 706 440, 412 Subscriptions: Subscriptions for preferred stock of banks 24, 233 257,438 354,918 393,872 413,473 498,106 155,910 140,498 Purchases of capital notes and debentures of banks. 192,947 221, 963 245,639 271,501 295, 248 149,362 128, 252 Total 24,233 450, 385 576, 881 639,511 684,974 793, 354 305, 272 268,750 Total loans and subscriptions.. 1,529,035 2, 285, 778 2, 367,122 2,413, 644 2,447,902 2, 585,0551,089, 64221,040,987 ALLOCATIONS For relief: Federal Emergency Relief Act of 1932.. 294, 845 299,011 299, 003 298, 562 298,561 15 15 Federal Emergency Relief Act of 1933.. 1,079 478, 244 486, 687 487, 061 487,979 493,458 12,974 12,939 Total. . 295,924 777, 255 785, 690 785,059 786, 541 792, 019 12,989 12,954 —» To other Government agencies: To Secretary of the Treasury for— Purchase of stock of Federal home-loan banks 36, 870 79,146 79, 646 80, 446 80,946 81,446 45, 095 44,295 Purchase of stock of Home Owners' Loan Corporation. 39,000 59,000 69,000 114,000 154, 000 141,000 131,000 To Land Bank Commissioner 27666 147, 600 147, 600 147, 600 147,600 147, 600 97,400 97,400 To Federal Farm Mortgage Corporation __. 55,000 55,000 55, 000 55, 000 55, 000 To Secretary of Agriculture: Crop loans 115, 000 115, 000 115,000 115, 000 115,000 115, 000 Reallocated as capital regional agricultural credit corporations 41,000 44, 500 44,425 44,475 44, 500 44, 500 75 25 Reallocated to Governor of Farm Credit Administration 40, 500 40, 500 40,500 40, 500 40, 500 Total _. 194, 870 520, 746 541,171 552, 021 592,720 638, 046 283, 570 272, 720 Total allocations 490, 794 1, 298, 001 1, 326,860 1, 337,980 1,385,675 1, 430, 064 296, 559 285, 675 Total loans, subscriptions, and allocations. 2,019,829 3, 583, 779 3,e 3, 751,624 3,836,662 4,015,119 1,386,202 21,326,662 v Preliminary. 1 Loans to aid in the reorganization or liquidation of closed financial institutions on Apr. 30, 1934, amounted to $346,239,000 representing proceeds disbursed, less repayments, and $199,010,000, not yet disbursed. 2 In addition the corporation as of Apr. 30, 1934, had approved in principle loans of $186,994,000 and subscriptions of $114,386,000 upon the performance of specified conditions. Back figures.—See BULLETINS for December 1933, pp. 738-9, and February 1934, pp. 103 and 132. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

460 FEDERAL RESERVE BULLETIN JULY 1934 BOND PRICES STOCK PRICES Preferred Common stocks (index, 1 stocks Other bondsl Year, month, or date (industrial high- Indus- Rail- United grade) Total trial road Utility States Corpo- Corporate Year, month, or date Govern- rate and b m o e n n d t s m g (h r i u p a i n g d a i h e l c ) - - Total In tr d ia u l s- R ro a a i d l- Utility N 1 1 9 9 u 3 3 m 2 3 a a b v v e e e r r r o a a g g f e e is . . . . sues.. 1 9 0 6 4 2 . . 1 8 0 421 35 4 6 6 6 1 33 =7 3 7 9 8 7 1933—June 109.7 77 97 Number of issues 2 15 60 20 20 20 July 112.5 84 98 August 112.9 79 87 1932 average. 99.2 81.1 69.4 63.2 64.8 80.5 September. 112.0 81 80 1933 average. 102.2 84.0 73.4 69.2 70.5 80.6 October 109.8 76 75 103.2 86.8 77.7 72.8 76.1 84.2 November. 107.5 77 70 July... 103.3 89.6 81.5 75.6 82.2 86.8 December.. 107.7 79 67 August 102.9 89.9 80.8 75.9 81.2 85.3 September.. 103.0 87.9 77.5 74.5 76.8 81.4 1934—January... 111.2 84 73 October 102.9 86.5 75.3 72.7 73.5 79.7 February. 116.5 88 81 November.. 100.5 82.6 72.1 70.5 68.5 77.3 March 117.5 85 76 December.. 100.0 83.6 73.6 71.5 72.2 77.1 April 120.2 88 76 May 121.0 80 70 1934—January 100.3 88.3 78.5 75.6 79.0 80.9 June 122.1 81 72 February. __ 101.9 92.9 84.0 79.8 85.8 86.5 March 102.8 95.1 84.8 80.5 86.4 87.7 June6__. 121.4 70 April 103.7 97.0 87.0 82.8 88.7 89.7 June 13_. 122.2 73 May 104.4 97.6 86.1 82.5 86.9 89.1 June 20.. 122.2 73 June 104.7 99.0 86.3 82.5 87.1 89.4 June 27_. 122.7 72 June 6 104.6 98.1 85.8 82.3 86.4 88.7 June 13 105.0 99.0 86.6 82.6 87.8 89.4 Source.—Standard Statistics Co. June 20 104.7 99.4 86.8 82.7 87.7 89.9 June 27 104.8 99.4 86.4 82.6 86.9 89.8 CAPITAL ISSUES » Price indexes derived from average yields. [Long-term; i.e., 1 year or more. In millions of dollars] 2 Now 3 Liberties and 12 Treasuries. New Treasury issues were added Au 3 g 4 . 5 1 c 5 o , r 1 p 9 o 3 r 3 a , t e N a o n v d . 1 1 , 5 1 9 m 3 u 3, n i A ci p p r a . l 1 . 6, 1934, and June 15, 1934. New issues Re- Source.—For United States Government bonds, Federal Reserve Bank fundof New York; for other bonds, Standard Statistics Co. Domestic ing Total issues BOND YIELDS1 Year and month m ( e d s o t - ic State Corporate For- m ( e d s o t - ic and and eign and Year, d m a o te nth, or T U r u e . r S a y s . - M ( i h p u i a n g l i h a c - - Corporate, by ratings 3 e f i o g r n - ) Total i n m p ic a u l i - - B n a o o n n te d d s s Stocks e f i o g r n - ) grade) Aaa Aa Baa 1925 6,201 5,125 1.352 2,452 1,153 1,076 925 Number of issues 15 30 30 30 30 1926 6,314 5,189 1,344 2,667 1,087 1,125 1,046 1927 -. 7,556 6,219 1,475 3,183 1,474 1,337 2,220 1932 average.. 3.66 4.65 5.01 5.97 7.20 9.30 1928 8,040 6,789 L, 379 2,385 2,961 1,251 1,858 1933 average.. 3.31 4.71 4.49 5.23 6.09 7.76 1 1 9 9 2 3 9 0 1 6 0 , , 9 0 0 9 9 1 9 6 , , 4 00 2 4 0 1 L , , 4 4 1 3 8 4 2 2 , , 0 9 7 8 8 0 5 1, . 5 9 0 2 3 4 9 6 0 7 5 1 1,4 7 2 1 2 1 1933—March 3.44 4.88 4.68 5.61 6.64 8.91 1931 '3,089 2,860 1.235 1,240 311 229 949 April 3.43 5.05 4.78 5.81 6.85 9.12 1932 1,165 1,157 755 305 20 8 583 May 3.31 5.27 4.63 5.40 6.29 7.74 1933 722 710 484 40 120 12 337 June __ 3.22 4.71 4.46 5.09 5.88 7.07 July _ 3.20 4.60 4.36 4.83 5.58 6.62 1933—June 117 110 98 3 9 7 106 August 3.21 4.54 4.30 4.77 5.51 6.77 July . . 122 117 28 0 53 5 45 September.. 3.20 4.59 4.35 4.96 5.70 7.27 August 46 46 32 0 14 0 7 October 3.22 4.60 4.34 4.97 5.76 7.49 September.. 64 64 37 0 9 0 30 November... 3.46 4.89 4.54 5.35 6.22 7.98 October 59 59 56 0 3 0 1 December.... 3.53 4.89 4.50 5.27 6.21 7.75 November.. 88 88 82 0 6 0 2 December.. 57 57 41 0 16 0 18 1934—January... 3.50 4.67 4. 35 5.00 5.72 7.01 February. 3.32 4.48 4.20 4.70 5.24 6.27 1934—January 48 48 37 0 6 0 42 March 3.21 4.24 4.13 4.55 5.12 6.26 February... 79 79 59 12 1 0 8 April 3.12 4.11 4.07 4.43 4.97 6.01 March 97 97 81 9 5 0 50 J M un ay e 2 3 . . 9 0 4 1 3 3 . . 7 9 3 3 3 4 . . 9 0 3 1 4 4 . . 3 3 0 7 4 4 . . 9 9 6 6 6 6 . . 0 0 6 5 A M p a r y il 1 1 4 0 3 3 1 1 4 0 3 3 10 6 0 1 2 2 4 6 5 3 0 0 9 3 3 9 June 123 123 102 0 9 0 183 June 6__ 2.98 3.80 3.93 4.35 5.00 6.11 June 13 _ 2.94 3.75 3.93 4.31 4.95 6.05 June 20 _ 2.92 3.70 3.93 4.29 4.92 6.00 r Revised. June 27- 2.92 3.66 3.91 4.26 4.93 6.05 i Includes issues of Federal land banks and Federal intermediate credit banks, not shown separately. Sources.—For domestic issues: Commercial and Financial Chronicle, 1 Monthly data are averages of daily or weekly figures. for foreign issues (issues publicly offered) annual totals are as finally 8 Standard Statistics Co. reported by Department of Commerce, while monthly figures are as «Moody's Investors' Service. compiled currently and are subject to revision. < New issue added June 15, 1934; see BULLETIN for June p. 322, for Back figures.—See (for figures of new issues—annual and quarterly earlier changes. basis) Annual Report for 1932 (table 103). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

461 JULY 1934 FEDERAL RESERVE BULLETIN 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 * pay loadings * * Com- Year and Total Manufactures Minerals Total Residential All other rolls» modmonth ity )rices5 Unad- Ad- Unad- Ad- Unad- Ad- Unad- Ad- Unad- Ad- Unad- Ad- Unad- Ad- Unad- Unad- Adjusted justed justed justed justed justed justed lusted justed justed justed iusted justed justed justed justed justed 1919- 83 84 77 63 44 79 107 97 84 139 1920 87 87 89 63 30 90 108 117 91 154 1921 67 67 70 56 44 65 82 76 79 98 1922 85 86 74 79 68 88 91 81 87 97 1923 101 101 105 84 81 86 104 103 100 101 1924 95 94 96 94 95 94 97 96 97 98 1925 104 105 99 122 124 120 99 101 103 104 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 99 102 103 97 1929 119 119 115 117 87 142 105 109 106 95 1930 96 95 99 92 50 125 92 89 92 86 1931 81 80 84 63 37 84 77 68 75 73 1932 64 63 71 28 13 40 64 46 56 65 1933 76 76 81 25 11 37 69 49 68 66 1930 November 84 86 82 85 96 92 68 76 46 48 86 99 85 85 77 86 84 81 December 76 84 74 82 89 93 59 73 37 43 77 98 82 83 75 74 84 80 1931 January.. 82 83 81 83 87 89 58 71 37 44 75 93 80 82 70 74 82 78 February. 87 86 88 86 84 87 68 79 42 47 89 104 80 81 74 74 80 77 March 89 87 91 87 82 89 77 77 50 47 98 100 81 81 76 75 80 76 April 90 88 91 87 83 91 82 73 52 44 107 96 81 81 74 77 80 76 May 89 87 90 87 84 87 78 65 47 40 104 85 80 80 73 79 79 73 June 83 83 83 82 86 87 74 63 41 37 101 84 78 79 70 77 77 72 July 80 82 79 82 86 86 68 61 36 35 94 82 77 78 C66 78 76 72 August-„ 78 78 77 78 82 79 63 59 32 33 87 81 77 77 66 76 72 72 September 77 76 76 75 83 78 59 59 32 32 81 80 77 75 63 78 69 71 October-. 75 73 72 71 90 83 52 55 29 30 71 76 74 73 61 78 69 70 November 72 73 70 71 84 81 43 49 26 27 57 67 72 72 58 70 68 70 December 68 74 66 72 79 84 30 38 20 23 39 50 71 72 58 61 69 69 1932 January. . 71 72 70 71 74 77 25 31 16 19 33 41 69 70 54 58 64 67 February. 71 69 70 68 75 78 23 27 15 17 30 35 70 70 55 69 62 66 March 68 67 66 64 78 85 26 26 16 15 35 36 68 68 53 58 61 66 April 64 63 63 61 72 80 31 27 16 14 43 38 66 66 50 57 59 66 May 61 60 60 59 65 67 31 26 14 12 45 37 63 64 47 53 54 64 June 59 59 58 58 62 64 32 27 12 47 39 61 62 43 52 52 64 July 56 58 55 57 63 65 31 27 12 11 46 40 59 60 40 51 51 66 August... 59 60 58 59 66 65 32 30 11 12 48 45 60 60 41 53 51 65 September 67 66 66 65 74 71 30 30 12 12 45 44 63 62 43 61 54 65 October __ 68 67 67 66 80 74 28 29 12 12 41 43 64 63 45 65 57 64 November 65 65 63 63 78 75 24 27 10 10 35 41 63 63 43 58 57 64 December 60 66 58 64 73 77 22 28 8 9 33 43 62 62 42 52 68 63 1933 January.. 64 65 63 63 71 73 18 22 7 8 27 33 60 61 40 51 56 61 February. 64 63 63 61 76 79 16 19 7 8 23 27 61 62 40 51 64 60 March.... 60 59 58 56 74 81 14 14 8 8 18 18 59 59 37 48 60 60 April . 67 66 68 ' 65 65 72 16 14 11 10 19 17 60 60 39 61 53 60 May 79 78 80 r 77 76 78 19 16 13 11 24 20 63 63 43 c 55 c 55 63 June 91 92 93 93 82 84 21 18 14 13 27 23 67 67 47 « 61 «62 66 July 96 100 97 101 89 90 24 21 13 13 32 28 72 73 51 66 66 60 August-.- 90 91 89 91 94 91 25 24 12 12 36 33 76 76 57 65 61 70 September 85 84 84 '83 93 87 30 30 12 12 45 45 80 78 59 68 60 71 October. _ 78 '76 '76 76 88 81 35 37 12 12 53 57 80 78 59 66 68 71 November 72 72 70 71 84 81 42 48 12 13 66 76 76 76 56 '59 71 December 69 75 67 73 80 85 45 57 11 13 73 93 74 75 55 '56 71 1934 January.. 77 78 75 76 85 88 40 49 10 12 64 80 73 75 54 68 64 72 February- 83 82 '82 80 88 91 38 44 10 12 60 70 78 78 61 61 64 74 March 87 85 86 82 91 100 33 33 12 11 50 51 81 81 65 63 66 74 April 88 86 90 85 81 90 36 32 14 12 54 49 82 82 67 60 62 73 May ,86 ,89 ,86 87 89 32 26 13 11 47 39 82 82 67 63 63 74 Preliminary. r Revised. e Corrected. * Average per working day. 1 For indexes of groups and separate industries see pp. 500-501; for description see BULLETIN for February and March 1927; for revised figures back to 1919 see BULLETIN for September 1933, pp. 584-585. 2 3-month moving average of F. W. Dodge Corporation data centered at second month; for description see BULLETIN for July 1931, p. 358. For back figures see Annual Report for 1932 (table 105). 3 Revised indexes. The indexes for factory employment and pay rolls unadjusted for seasonal variation are compiled by the Bureau of Labor Statistics. For description and back figures see BULLETIN for May 1934, pp. 270-271. For description and back figures for the seasonally adjusted index of factory employment computed by the Federal Reserve Board, see BULLETIN for June 1934, pp. 324-343. « For indexes of groups see p. 462; for back figures for total see Annual Report for 1932 (table 105) and for groups see BULLETIN for February 1931, p. 108. * Index of Bureau of Labor Statistics; 1926=100. Index numbers for groups of commodities (also data b week Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

462 FEDERAL RESERVE BULLETIN JULY 1934 MERCHANDISE EXPORTS AND IMPORTS [In millions of dollars] Merchandise exports * Merchandise imports J Excess of exports Month 1930 1931 1932 1933 1934 1930 1931 1932 1933 1934 1930 1931 1932 1933 1934 January --- 411 250 150 121 172 311 183 136 96 136 100 66 15 25 37 February 349 224 154 102 163 282 175 131 84 133 67 49 23 18 30 March 370 236 155 108 191 300 210 131 95 158 69 26 24 13 33 April 332 215 135 105 179 308 186 127 88 147 24 29 9 17 33 May 320 204 132 114 P160 285 180 112 107 *155 35 24 20 7 June -_ 295 187 114 120 250 173 110 122 44 14 4 2 July 267 181 107 144 221 174 79 143 46 6 27 1 August 298 165 109 131 218 167 91 155 79 2 17 —23 September 312 180 132 160 226 170 98 147 86 10 34 13 October 327 205 153 193 247 169 105 151 80 36 48 42 November 289 194 139 184 204 149 104 129 85 44 34 56 December 275 184 132 193 209 154 97 134 66 30 35 59 Year 3,843 2,424 1,611 1,675 3,061 2,091 1,323 1,450 782 334 288 225 p Preliminary. i Including both domestic and foreign merchandise. * General imports, including merchandise entered for immediate consumption and that entered for storage in bonded warehouses. Back figures.—See BULLETIN for January 1931, p. 18. DEPARTMENT STORES—SALES, STOCKS FREIGHT-CAR LOADINGS, BY CLASSES [Index numbers; 1923-25 average=100] [Index numbers; 1923-25 average=100] 1934 Index of sales1 Index of m s o to n c th k ) s (end of Jan. Feb. Mar. Apr. May Adjusted Without Adjusted Without Month for seasonal seasonal ad- for seasonal seasonal ad- Adjusted for seasonal variation variation justment variation justment Total 64 64 66 62 63 1933 1934 1933 1934 1933 1934 1933 1934 Coal 68 78 87 68 69 Coke 61 76 71 50 58 Grain and grain prod January 60 69 49 57 58 66 52 59 ucts 68 68 75 74 75 February 60 71 49 59 57 66 54 63 Livestock 51 48 46 52 52 March 67 77 50 73 54 65 55 67 Forest products 30 30 32 31 33 Ore _ 34 34 41 38 39 April . 67 77 68 73 53 65 55 68 Miscellaneous 69 67 67 66 68 Mav 67 77 67 77 55 66 56 67 Merchandise» 70 67 66 65 65 June . 68 64 57 56 July 70 49 60 56 Without seasonal adjustment August 77 59 64 62 70 73 70 73 Total 58 61 63 60 63 October 70 77 70 77 Coal 77 85 82 57 61 November _ 65 75 69 78 Coke 67 86 71 48 58 December 69 121 65 62 Grain and grain products 65 65 63 57 61 Year 67 61 Livestock 53 46 40 48 49 Forest products 26 31 33 33 35 for p i B c P h a r a s e e n l d i g m e t s i h n r f a o r r o u y m g . h o m u o t n o th n f t i o g u m re o s n o th f d in a il n y u a m v b e e ra r ge o f sa S l a e t s u — rd w a i y th s a a n ll d o w f a o n r c 6 e M M Or i e e s r - c c e h l a la n n d e i o se u s J 5 6 5 5 8 5 6 8 8 5 6 6 1 4 0 7 6 6 1 8 7 9 5 7 6 9 0 7 national holidays: New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas. Adjustment for sea- 1 In less-than-carload lots. sonal variation makes allowance in March and April for the effects upon sales of changes in the date of Easter. Based on daily average loadings. Source of basic data: American Railway Association. Back figures.—See BULLETIN for November 1930, p. 686; Annual Report for 1932 (table 105). Back figures.—See BULLETIN for February 1931 .pp. 108-110. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1934 FEDERAL RESERVE BULLETIN 463 FOREIGN BANKING AND BUSINESS CONDITIONS ANNUAL REPORT OF THE NETHERLANDS BANK The annual report of the Netherlands Bank regard to the success of the American Governfor the year ended March 31, 1934, was sub- ment's own policy, which is directed toward mitted to the general meeting of shareholders raising prices. Raising the price of gold and by the president of the bank, Dr. L. J. A. Trip, in this way exerting new pressure on world on June 12, 1934. Sections of the report are prices would inevitably react unfavorably on given herewith.1 the American price level. Formation of the gold bloc.—The formation Recent experience has once more demonand maintenance of the nucleus of gold stand- strated that gold cannot be dispensed with as ard countries, which were organized into the the basis for an international monetary system. so-called gold bloc following the failure of the Even under existing abnormal conditions, with London Economic Conference, is of great impor- their highly confusing influence on commerce tance for the interests of the world as a whole and exchange rates, gold still constitutes in the and for those of individual countries, whether last analysis the instrument through which valthey belong to this group or not. In existing ues are mutually compared and continues to be circumstances its continuance is imperative for the basis for international transactions. In gradual world improvement. Failing this, not one of the countries that went off gold was confidence would suffer, monetary chaos would the permanent breaking of the tie with gold set be complete and a further downward move- up as a principle for future monetary policy. ment of exchange rates would begin. The On the contrary, these countries have connumber and extent of direct trade barriers stantly endeavored to increase their gold stocks. would inevitably increase still more and inter- There would be no sense in this if they did not national commodity exchanges wxould be sub- intend to return to gold. Conferences as to the jected to renewed pressure. manner in which such a return may be accom- It is now generally recognized that the effects plished and as to the conditions that will have of the fluctuations in the value of the non-gold to be fulfilled in order to insure the future percurrencies are among the most serious obstacles manence of the gold standard should be conto world trade. This recognition is one cause sidered the first and most important aim of inof the increased desire the world over to return ternational politics. to exchange stability. A resolution adopted For such conferences and for assistance in by the International Chamber of Commerce carrying out the principles and regulations and published in March 1934 is a significant which must be applied if the gold standard is expression of this desire. Again, the resolu- to function adequately, the Bank for Internation adopted by representatives of 23 central tional Settlements stands ready as the approbanks at Basle on May 14, 1934, states that priate institution. The Bank for International the first aim of their monetary policies is the Settlements will be in a position to render very speediest possible return to stability of ex- valuable assistance in the restoration and in the change rates on the basis of the gold standard. functioning of an international monetary sys- This policy is also urged in the report of the presi- tem based on gold. dent of the Bank for International Settlements. Foreign trade.—Since the Netherlands is to a It is to be hoped that this view may be great extent dependent on international trade adopted by the American Government, which it was to be expected that the unfavorable facon January 31, 1934, fixed the gold value of the tors in the international situation would exert dollar at 59.06 percent of its former value, a strong influence on our domestic economy. reserving the right to depreciate further up to The value of our aggregate foreign trade fell a maximum of 50 percent. It would be most from 2,145,000,000 florins in 1932 to 1,935,helpful if the right to depreciate further were 000,000 florins in 1933, that is, a decline of definitely renounced and that uncertainty 210,000,000 florins. Of this amount 90,000,000 eliminated. And this would be true not only florins represents imports and 120,000,000 florin regard to international affairs, but no less in ins represents exports. The deficit in the balance of trade rose from 453,000,000 florins in * Taken with some textual revision from the official English version published by the Netherlands Bank. In addition, the report contains 1932 to 483,000,000 florins in 1933. sections on world trade, international monetary developments, the London Conference, personnel, etc., together with tables showing the The decline in the foreign trade of the Netheroperations of the bank in detail. For earlier reports see Bulletins for lands is not surprising in view of the policies of July 1933, September 1932, August 1931, etc. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

464 FEDERAL RESERVE BULLETIN JULY 1934 isolation which were followed to a greater or public bodies has been fully revealed, and the less extent by all countries. Moreover, the reorganization of that position vigorously smaller countries such as Holland, which have undertaken. The burden of the national debt, but a limited domestic market and so have both of the Netherlands and of the Dutch East adapted their economic organization in large Indies, has been substantially reduced by means measure to international trade, are especially of large-scale conversions. In business enterhard hit by the shrinking of that trade. It prises the cost of production has in many cases should not be forgotten, however, that the de- been reduced to such an extent that equilibrium cline in Holland's trade was less than the has been achieved or approximated. world's average. The value of Dutch trade It is nevertheless a fact that the process fell 59.2 percent below the corresponding figure under way has not yet been completed. The for 1929, whereas the percentage for the world public finances must yet cover the last stretch as a whole was 62.8 percent. The percentage of the road to equilibrium. Taxation has been of the decline in volume for the Netherlands raised to a level which is too high to admit of amounts to 22.1 percent, for the world as a the necessary formation of new capital. Pubwhole to 30 percent. lic expenditure, even yet, continues at a level From the available data it would appear that which is higher than the national income economic conditions in Holland are becoming justifies. In other ways Holland's economic settled at a depression level slightly above the life shows various symptoms of rigidity and lowest level prevailing at the beginning of 1933. lack of balance which prevent or hinder read- Certain measures—in particular assistance to justment. This is reflected especially in the agriculture and the quota system—have led volume of unemployment and in the contracted Dutch industries to concentrate more on the scale of Dutch exports. requirements of the domestic market. The Statistics of unemployment and exports show same thing has- happened in most other coun- that further steps should be taken to reduce tries. Although this may be necessary under prices and costs of production. Although the the inescapable pressure of circumstances, the root of the evil lies in the policy of isolation fact remains that this development is artificial followed by other countries, it cannot be denied in character and fraught with grave dangers. that the price level in Holland is higher than in Those countries will eventually be the strongest most other countries. The Netherlands will which complete the inevitable process of read- never be able to afford a policy of isolation. justment as soon as possible, and make this the Its limited domestic market, its economic basis for their policy. It is true in existing structure, its geographical position, the characcircumstances that in no country in the world ter of its population, and its long-established can economic forces be allowed to have free relations with foreign countries require the play; nevertheless, it should be emphasized maintenance and expansion of its foreign trade. that no country in the world can in the long The Netherlands Bank.—During the past run escape the influence of the changed condi- financial year the Netherlands Bank, without tions or afford to maintain a level of prices and undue difficulty, has performed its functions as a standard of living which are considerably a central bank and a credit institution in acabove those of the majority of countries which cordance with the banking and monetary laws compete in selling their products in the markets of the Netherlands. of the world. The primary function of the bank is to Process of readjustment in the Nether- maintain the gold value of the national curlands.—It should not be supposed, however, rency. In the exercise of this function the that the process of adaptation has made no bank had to contend with the unrest aroused progress in the Netherlands. Nor do I agree by the unfavorable development of monetary with those who apparently can visualize no conditions abroad and by the arguments for form of readjustment except by way of direct abandoning the gold standard which were government action or devaluation of the cur- urged by certain groups at home. The firm rency, even though they admit that the latter attitude of the Dutch Government and the measure is in itself inadequate to effect the cooperation of other countries that have required improvement. rejected monetary experiments as a means for Much, in fact, has been done during 1933 in fighting the crisis made it possible to banish particular. The realities of the situation that unrest. Furthermore, confidence in the forced through measures which before had been guilder increased steadily as the repeated atthought impossible. The financial position of tacks on our currency were repulsed and hasty Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1934 FEDERAL RESERVE BULLETIN 465 predictions that it would be impossible to cumstances this task should be the first conmaintain the gold standard were proved false sideration of the bank. by events. The bank has steadily adhered to The losses of gold were the result of abnormal those principles which, if generally adopted conditions causing sudden capital movements. and. put into practice, would allow the inter- As soon as these conditions changed, equilinational gold standard to fulfill all reasonable brium was restored and the foreign exchange requirements. The bank has also seen to it rates fell below the gold export point. It that its demand liabilities were reduced in should be remembered that Holland has at its proportion to the loss of gold that it suffered disposal a gold stock which is far in excess of in times of unrest and more recently when the normal requirements. This stock includes not gold content of the American dollar was low- only the gold holdings of the Netherlands Bank, ered. The high degree of liquidity of the but in addition, very substantial holdings in private banks was of great assistance in this the hands of corporations and private persons. endeavor. According to available figures these holdings The private banks also cooperated with the have declined slightly during the past financial Netherlands Bank by refusing to lend their year. funds for financing transactions directed against Significance of the gold movements.—It is the guilder. For the same purpose the bank evident that the bank's gold stock is liable to raised the discount rate whenever money mar- rather sharp fluctuations. As a result of the ket developments created a situation in which monetary crisis, gold has become practically increased demands on the credit facilities of the only medium for the settlement of interthe bank for gold purchases from the bank were national balances. Sometimes in the past tho to be expected. bank was called upon to furnish considerable These policies enabled the bank to keep the amounts for that purpose; but as a first "line gold cover against demand liabilities at nearly of defense77 it can better use foreign bills and the same level. The bank's gold stock at the balances. Thus during the first quarter of 1929 beginning of the past financial year amounted the bank utilized these resources to an amount to 949,069,000 florins. Owing to the unrest of no less than 200,000,000 florins before it aroused by the London conference it dropped had to draw upon the gold stock. At present to 732,520,000 florins on June 29, 1933. When only gold is available and it is entirely rational conditions became more normal again gold and in harmony with the principles of the gold flowed back to the Netherlands so that on standard that it should be used for its essential January 9, 1934 the gold stock totaled 923,461,- purpose. It is one of the deplorable conse- 000 florins. Afterward we lost a considerable quences of the international confusion, and amount of gold in consequence of the sudden at the same time it is an evidence of the great devaluation and stabilization of the American importance that in practice still attaches to dollar. As a result, at the close of the financial gold in spite of the criticism heaped upon it year on March 31, 1934, the gold stock had by various groups, that this use of gold to declined to 787,604,000 florins. On the dates discharge the very function for which it is held mentioned above the gold cover against aggre- is often considered dangerous to the stability gate demand liabilities was 80.12, 71.46, 81.21, of a national currency, whereas the influence and 77.52 percent, respectively, showing the of gold withdrawals on the maintenance of highly liquid position of the Netherlands Bank stability is not taken into account. The imand that of the private banks. In spite of portance of gold lies in its use for effecting inheavy fluctuations in the gold stock, the ternational settlements and for bridging over changes in the percentage of the gold cover the time required for adjustment to changed remained within narrow limits. During the conditions. Hoarding and withdrawing from year the gold stock showed a loss of 161,465,000 use considerable quantities of gold, as practiced florins, whereas the percentage decline in the at present in the countries that have abandoned gold cover was only from 80.12 to 77.52 percent. the gold standard, are inconsistent with that The developments reflected in the figures real significance. The much abused expression given above prove beyond all doubt that the "gold sterilization" would be appropriate here bank ought not to be hampered in its funda- inasmuch as this gold is denied its natural mental task of maintaining the gold value of function, namely, acting as a link between the the guilder. Not only in the present times of different currencies and as a means for interunrest and uncertainty, but also in normal cir- national settlements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

466 FEDERAL RESERVE BULLETIN JULY 1934 The German transfer problem.—The Nether- Switzerland one must conclude that it is lands Government by admitting extra imports neither correct nor reasonable to talk of disfrom Germany has been able to secure the full crimination in favor of those two countries. transfer of interest falling due up to July 1, The conclusion as to possible future develop- 1934. The Swiss Government has made a sim- ments is obvious. If, as a result of a reduction ilar arrangement. Other creditor countries of the amounts transferred, the Netherlands have raised objections against these arrange- were forced to curtail their imports from ments on the ground that they constituted a Germany either by public measures or as the discrimination in favor of the Dutch and Swiss result of a decrease in the national purchasing creditors at the expense of other creditor power, the situation would be aggravated incountries. stead of alleviated and other creditor countries These arguments are untenable. There was would also suffer the unfavorable effects. no difference of opinion among the creditors as Transfer agreements between Germany and to the fact that the transfer difficulties arose the Netherlands.—At the request of the authormainly out of the decline in the surplus of ities concerned the Netherlands Bank assisted Germany's trade balance in consequence of the in carrying out the agreements which the recession of international trade. On the basis Dutch and German Governments concluded of an estimated available surplus the creditors on October 28, 1933 and February 10, 1934 for decided what Germany could transfer. No the payment of the claims of Dutch creditors on account was taken of the fundamental cause of Germany on account of interest, dividends, and the difficulties and no provision was made for other sums due in the second half of 1933 and removing this cause. during the first half of 1934, respectively. For The charge of discrimination was unreason- this purpose we opened in our books a "Sonderable as applied to the Netherlands, for in 1932, konto fur zusatzlichen Transfer" (transfer before the transfer difficulties began, the excess account) in the name of the Reichsbank.. of Dutch imports from Germany over German This account is credited with the proceeds of imports from the Netherlands amounted to the special imports as specified by the Governnot less than 223,289,000 florins; thus the ments in the agreements. To the debit of this value of our imports from Germany was 226 account creditors resident in the Netherlands percent of the value of our exports to that are paid that part of their claims which they country. Thus, the volume of foreign exchange would not receive if the special German-Dutch which the Netherlands made available to Ger- agreements did not exist. The verification of many not only sufficed for the transfer in full ownership required in this connection with of the amounts due on account of interest and regard to the claims represented by bonds, is redemption of Dutch claims, but also produced done by the Association of Stockbrokers. a very considerable surplus for transfer to According to the data which we receive from creditors other than Dutch. this organization, we debit the transfer account Under the general transfer agreement the and remit the funds required either to the pay- Dutch Government was willing to allow extra ing agents of German securities or—in special imports from Germany to make up what was cases—to the Amsterdam Bankers' Association lacking of the 100 percent of the interest to the in their capacity of Agent of the Deutsche Netherlands. Two conclusions can be drawn Golddiskontbank. The payment of claims not from this. First, although the Netherlands represented by securities, as far as these are was in no way responsible for the conditions not excluded from all transfer under the German that led to the transfer difficulties, as the trade transfer moratorium, is effected through the figures quoted for 1929 plainly show, it never- Postal Cheque and Transfer Service at The theless adopted measures which would help to Hague, which receives the supplementary remove the cause of those difficulties. Second, amounts from the transfer account according the measures adopted could not prejudice the to data with which this service provides us. claims of creditors other than Dutch nationals, We further opened a special account in favor because the additional amount of foreign ex- of the Amsterdam Bankers7 Association on change required was supplied by the Nether- which that association, as agent of the Goldlands itself. diskontbank, can receive the funds required Finally, when one considers that the German for the purchase of scrips. Government was prepared to conclude with Money market.—At the beginning of the other creditor countries arrangements similar fiscal year the Amsterdam money market to those made with the Netherlands and with showed the ease which had been characteristic Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1934 FEDERAL RESERVE BULLETIN 467 for some time. Uncertainty as to the future bills in the market during the first 6 months, development of financial and economic condi- whereas the Government entered into the tions, the abundance of liquid funds resulting obligation not to issue other 3-year bills during from the stagnation of industry and commerce, these 6 months. The Netherlands Bank dean i the decline of acceptance business caused clared itself prepared on principle to accept by the shrinkage of international trade, kept these bills on the usual terms as collateral rates at a low level. The course of events in security for loans. In February and March the United States at first affected the market 1934, 5-year bills also bearing 3K percent only slightly. As gold arbitrage assumed interest were offered under this act; the yield larger proportions, however, and shares rose on on the paper allotted at these issues, which the stock exchange, the abundance of funds were many times oversubscribed, was in both came to an end, while during the days of instances 3.34 percent. tension on the foreign exchange market the Discount rates.—As already mentioned, the various quotations rose considerably. This Netherlands Bank twice raised its rates, in happened at the beginning of May and again both cases by a full percent and all along the about the end of June; in both cases the line. These changes took effect May 12, and Netherlands Bank raised its discount rate by a June 29, 1933. They aimed at checking an full percent. The tension at the beginning of undesirable credit expansion that would render May was soon overcome; the end of June it difficult to keep the guilder at its legal parity. tightness continued longer—partly because of The discount rate was 4% percent from June 29 end-of-month requirements—and was accom- to July 14, inclusive, the other rates being panied by higher quotations. The private 5 percent during this period. As the strain in discount rate and " prolongation" (monthly the money market was further relieved, the loan) rate rose to 4 percent; the call rate went bank was able to lower the rates gradually. as high as 4% percent. This was done as from July 15, July 29, Aug- On July 7, 1933, the tone of the foreign ust 15, and September 19, 1933, each time by exchange market changed and the strain was one-half of 1 percent. On the date last mensomewhat relieved. This tendency toward tioned the level obtaining until May 12, 1933, easier money gained strength toward the end of was reached again, the discount rate being July and through August, until by September reduced as from that date to 2}i percent and the former easy situation had returned. This the other rates to 3 percent. continued until February 1934, when the Capital issues.—There were no foreign issues monetary measures of the United States again during the period under review. As mentioned led to a rise in money rates. In addition, in the previous annual report, the bank had toward the end of March 1934, the banks had intimated informally at the beginning of 1933 an opportunity to employ their liquid funds that the flotation of long-term foreign loans more profitably by buying Government bonds should be avoided until more certainty existed called for redemption. This time, however, with regard to the development of international the quotations did not reach the high levels of relations. In view of the subsequent course of previous occasions. The private discount rate events the bank has found no reason to alter reached a peak of 1% percent, " prolongation" its position in this respect. 1% percent, and call money three-fourths of By far the greater part of domestic issues 1 percent. was for Government account just as was the Treasury financing.—The act of December case last year. The total amount of provincial 20, 1933 (Staatsblad No. 705) raised the maxi- and municipal loans declined from 93,300,000 mum currency of Treasury bills from 12 months florins to 26,400,000 florins. It is worth noting to 5 years and at the same time legalized the that in addition hereto considerable amounts issue of bills under par. On the strength of of these loans were placed privately, as shown this authorization the Government in Decem- by the prospectuses. ber 1933 placed 95,000,000 florins 3%-percent The total of issues for account of private 3-year Treasury bills with a syndicate of enterprises, which in the previous year had bankers resident in this country. The banks already fallen to 16,000,000 florins, showed a in question have undertaken not to place the further decline to 8,000,000 florins. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

468 FEDERAL RESERVE BULLETIN JULY 1934 BALANCE SHEET OF THE NETHERLANDS BANK AS OF MAR. 31, 1934, AND MAR. 31, 1933 [In thousands of florins] Resources Mar 19 . 3 4 31, Ma 1 r 93 . 3 31, Liabilities Ma 19 r. 3 3 31, Gold coin — 106, 715 98, 200 Notes in circulation Gold bullion 680,888 850, 869 Current accounts Silver coin 24, 658 22, 990 Other demand liabilities Correspondents abroad 1,172 8,088 Capital Foreign bills 1,154 72,813 Reserve fund Domestic bills 27, 794 37,491 Special reserve (art. 9 of the Bank Act of 1919) Loans 111, 656 39,051 Pension fund Advances in current account 54, 678 46, 054 Unearned discount on domestic bills Advances to the Government (law of May 27,1932) 16,996 18, 331 Unearned discount on foreign bills Investments in shares listed by the Amsterdam Dividends payable Brokers' Association 16, 579 17, 035 Balance of profits at the disposal of the general Shares of the Bank for International Settlements meeting of which 25 percent is paid in 1,200 1,200 Other investments 4,947 4,212 Net balance with banking correspondents. _. 41 27 Cash items 49 47 Interest accrued on loans 785 175 Interest accrued on advances in current account. 213 201 Interest accrued on investments 127 152 Commission account 124 69 Bank premises and furniture 4,970 5,000 Total resources 1, 054, 7481,222,006 Total liabilities. 1,222,006 CUBAN CURRENCY LEGISLATION A series of decree-laws affecting the currency ernment for United States currency. Decreehave been enacted in Cuba in recent months. Law No. 176 of April 27 contained full regula- Provision has been made to coin additional tions for the issue of silver certificates and prosilver pesos and to give them unlimited legal vided that the certificates should be admitted tender power; the gold peso has been devalued in payment of public dues on the same basis as in conformity with devaluation of the American silver coins. dollar; and foreign exchange transactions have On May 23 the content of the gold peso was been brought under control. A brief resume of reduced by Decree-Law No. 244 from 1.5046 the laws is given below together with transla- grams of fine gold to 0.8886 of a gram. The tions of three of them. old and the new gold contents of the Cuban peso Decree-Law No. 93 of March 22, 1934, corresponded respectively to those of the ordered the coining of 10,000,000 silver pesos United States dollar before and after January against which silver certificates might be issued. 31, 1934. This alteration of the gold content The silver was to be purchased at the world- of the peso and the substance of the other promarket price. To facilitate such purchases visions of the law were confirmed on May 26 by in the American market the Second Export- Decree-Law No. 256, published below, which Import Bank of Washington, D.C., granted a replaced all except the preamble of Decree-Law credit of $4,000,000 to the Cuban Government. No. 244. At the time the minting of the new silver Among other things these two laws made the coins was ordered there was a small discount silver peso unlimited legal tender and provided on the silver peso in relation to the American that all obligations payable in money could be dollar. With the purpose of preventing the settled in any currency to the extent that it was new issues from increasing this discount, legal tender in Cuba. The latter provision Decree-Law No. 153 was enacted April 19, was clarified on May 28 by Decree-Law No. 1934. This law admitted national silver cur- 259, published below, which stated that rency without limit in payment of taxes, duties, obligations contracted prior to May 23, 1934, fees, and imposts of the State, the Provinces, stipulating payment in a currency that conand the municipalities. The preamble stated tinues to be legal tender in Cuba, should be paid as one of the reasons why such permission in that currency. The preamble called attencould be granted at this time the fact that the tion to the fact that American paper currency moratorium on payment of principal of its continues to be legal tender in Cuba, although foreign debt (under Decree-Law No. 123 of under Decree-Laws No. 244 and No. 256 both April 10) had diminished the need of the Gov- Cuban and United States gold coins of the old Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

469 JULY 1934 FEDERAL RESERVE BULLETIN par weight were demonetized. The Cuban "ART. IV. National gold coins of the fineness and Government will purchase these old gold coins weight established by the law of October 29, 1914, and gold coin of the United States of America shall not as bullion at the new par rate. henceforth constitute legal tender and shall be con- Decree-Laws No. 244 and No. 256 also pro- sidered as bullion and acquired by the Cuban Governhibited the export of gold in any form other ment by weight at the price fixed in article II of this decree-law. than articles of personal use. This was fol- "ART. V. Article V of the National Monetary Law lowed on June 2 by the establishment of Govof October 29, 1914, shall be amended to read as follows: ernment control over currency exports and u 'ART. V. Gold coins of national currency having the foreign exchange transactions under Decree- weight and fineness fixed in article I of Decree-Law Law No. 268, published below. The transfer No. 244 and silver coins of 1 peso shall constitute unlimited legal tender. Subsidiary currency of silver of funds abroad for current business or in pay- shall be legal tender in the proportion of 8 percent of ment of existing obligations (including bonds the sum to be paid and full legal tender for the settleof Cuban enterprises) is in general permitted by ment of obligations not exceeding 10 pesos. Fractional currency of nickel shall be legal tender for payments this law; but the export of capital other than to not exceeding 1 peso. meet existing obligations is prohibited unless " 'All obligations payable in money, whether or not the capital has been imported subsequent to contracted before the effective date of the present law, June 2, 1934. can be settled in any legal tender currency in the proportion set forth in the preceding paragraph.7 "ART. VI. Exportation is prohibited of gold in the DECREE-LAW NO. 256 form of coin, bars, bullion, jewelry, ornaments, articles of use or in any other form with the exception of arti- I, Carlos Mendieta y Montefur, Provisional Presicles of personal use, in accordance with regulations dent of the Republic of Cuba, hereby make known that under this decree-law. the Cabinet has approved and I have sanctioned the "ART. VII. Anyone who exports, ships or attempts following: to export or to ship gold in violation of the prohibition Whereas in the copy forwarded to the Gaceta Oficial set forth above shall be fined not more than 5,000 of Decree-Law No. 244 of May 22 of the present year, pesos. published in Gaceta No. 119 of the following day, "The possession of gold in a customs zone in an certain errors in text occurred which should be amount exceeding 100 j:>esos, shall be considered as an corrected; attempt to export or ship. Whereas furthermore the said decree-law failed to "ART. VIII. Any gold that may be seized by the define the status of legal proceedings initiated in con- authorities because of its having been the object of fornection with gold exports prior to the effective date of bidden exportation or shipment or attempted exportathe above-mentioned Decree-Law 244; tion or shipment, shall be expropriated by the Govern- Whereas the situation that has developed as a result ment and forwarded for appraisal and acquisition to the of the said textual errors and the omission of the neces- Bureau of Currency of the Treasury Department. sary rulings must be remedied through the promulga- "ART. IX. The fine referred to in^article VII shall be tion of another decree-law embodying the corrections imposed by the Secretary of the Treasury within a period mentioned; not exceeding 30 days from the date of the violation, Whereas in the amending enactment it is not neces- the offender to be notified thereof at the time he sary to repeat the preamble of the said decree-law receives payment for the gold expropriated. Should but only its enacting clauses; the offender not submit to imposition of the fine, it Therefore, in exercise of the powers conferred upon shall so be stated in the record and the proceedings and it by the constitution of the Republic, the Cabinet has evidence together with the statement of the fine turned resolved to issue the following Decree-Law No. 256: over to the competent judge or tribunal for decision. Sole article.—Decree-Law No. 244 of May 22 of the "ART. X. Decrees Nos. 570 of April 21, 1917, and present year, published in the issue of the Gaceta 2788 of November 21, 1933, and No. 4 of disposition Oficial of May 23, shall read as follows: five of the customs tariff enacted by presidential decree of October 19, 1927, as well as any other provisions of "ARTICLE I. The fine gold content of the national law in any manner contradictory to this decree-law are monetary unit, the peso, is reduced and the peso shall hereby revoked. Nevertheless, cases pending decision have henceforth a weight of 0.9873 grams with 0.8886 when this decree-law is promulgated shall be decided grams of fine gold. in accordance with the laws in force at the time of the "ART. II. The Government will purchase by weight seizure." metallic gold which is offered to it in any form, at the ART. XI. This decree-law shall become effective upon rate of 35 silver pesos per Troy ounce of fine gold with its publication in the Gaceta Oficial of the Republic. no deduction other than 1 percent for costs of admin- Therefore, I order that this decree-law be fulfilled and istering this decree-law when the metal is 0.900 fine and executed in all its parts. additional charges when it is necessary to refine metal Given at the Presidential Palace, in Habana, on the of lower fineness. 25th day of the month of May 1934. "ART. III. The Secretary of the Treasury shall CARLOS MENDIETA. establish an office for the purchase of gold in the Bureau of Currency, and shall issue the necessary regulations DECREE-LAW NO. 259 governing the form and quantities in which the metal shall be purchased, the respective analysis and assays I, Carlos Mendieta y Montefur, Provisional Presiand the payment to the sellers, which, in the case of dent of the Republic of Cuba, hereby make known coins of legal tender and others of the same fineness that the Cabinet has approved and I have sanctioned, shall be made within 3 days following delivery. the following: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

470 FEDERAL RESERVE BULLETIN JULY 1934 Whereas in Decree-Law No. 244 of May 22, 1934, of the debts contracted for financing public works, the legal tender status of silver coin is established, and Decree-Law No. 140 of April 16 of this year was proarticle 10 of the law of October 29, 1914, granting equal mulgated, creating a commission to examine said operalegal tender status to the money of the United States of tions and render a report at its convenience; America, was not repealed by the said decree-law nor Whereas with the intent of increasing money in cirby any later measure; culation within the country it was resolved by Decree- Whereas under these circumstances both national Law No. 93 of March 22, 1934, published in the Gaceta, money and American paper currency are at present special edition No. 31, of the 23d of the same month legal tender, the payment of debts previously con- and year, to authorize the coining of 10 million pesos tracted being therefore possible in either of the said in silver of the same fineness and weight as the present two currencies without distinction; coins; Whereas article 1170 of the Civil Code provides that Whereas it is proper to supplement the said measures payments in cash shall be made in the currencies by prohibiting the exportation of capital by individuals agreed upon; to foreign countries, so that said capital may remain Whereas the enactment of Decree-Law 244 cited in the country and be invested herein; above may give rise to doubt as to whether or not Whereas it is necessary, however, to prevent this contracts in which payment was stipulated in Ameri- measure from obstructing or making difficult the normal can money, which, as stated, is legal tender, are de- interchange of goods with countries with which the mandable in that money; Government maintains relations, or the payment of Whereas in so important a matter it is advisable to debts formerly contracted and the continuation of make the Government's purpose perfectly clear and contracts such as life insurance and fire insurance avoid any misinterpretation which might be detri- created in the ordinary course of business within the mental to the country; country, for which purpose proper exceptions should Therefore, by virtue of the powers vested in it by the be made; constitution of the Republic, the Cabinet resolves to Whereas products might be exported to obtain issue the following Decree-Law No. 259: balances abroad thus indirectly bringing about the ARTICLE I. Obligations incurred in money, con- exportation of capital which should be employed within tracted prior to the promulgation of Decree-Law No. the country and it is desirable to adopt restrictive 244 of May 22, 1934, in which payment has been measures to prevent the establishment of such balances; agreed upon in a currency which continues to be legal Therefore, in use of the powers with which it is tender in Cuba, shall be paid in the currency agreed vested by the constitution of the Republic, the Cabinet upon. has resolved to issue the following Decree-Law No. 268: ART. II. All obligations payable in money contracted ARTICLE I. All exportation of money is hereby proafter the promulgation of that decree-law may be hibited, and, consequently, the exportation and negopaid in any legal tender money with the limitations tiation of drafts for payments abroad is hereby proestablished with respect to subsidiary coins of silver hibited, with the exceptions established in the following and fractional coins of nickel. article. ART. III. The present decree-law shall take effect ART. II. Nevertheless, money may be exported and from the date of its publication in the Gaceta Oficial drafts issued and negotiated in any of the following of the Republic. cases: Therefore, I order that the present decree-law be (a) For payment of the purchase price of imported fulfilled and executed in all its parts. goods. Given at the Presidential Palace in Habana, on the (6) For payment of obligations contracted prior to 28th day of the month of May, 1934. the date of this decree-law. CARLOS MENDIETA. (c) For payment of maintenance expenses up to a maximum of $500 per annum, of Cubans or foreigners DECREE-LAW NO. 268 resident in Cuba who are abroad for a short time or leave the Republic temporarily. I, Carlos Mendieta y Montefur, Provisional President (d) For payment of interest or principal of bonds or of the Republic of Cuba, hereby make known that the dividends on stock of companies located in Cuba, the Cabinet has approved and I have sanctioned the fol- holders of which reside abroad. lowing: (e) For payment of maintenance of offices and Whereas it is the purpose of this Provisional Govern- personnel, and for services rendered abroad to promote ment to assist in restoring the economy of the country the exportation of Cuban products, as well as for any by adopting the measures that may be of the greatest other expenditure for the same purpose. benefit to the Cuban people; (/) For payment of insurance premiums on existing Whereas one of the great needs requiring attention or future insurance contracts. is that of balancing international payments and in- (g) For payment or exportation of the principal or creasing the volume of money on hand and in circula- interest of any funds imported into the country after tion within the country in order that it may be devoted the promulgation of this decree-law. to the support and development of the national (h) For all payments which for any reason must be economy; made abroad by the State, the Provinces, or the Whereas in order to accomplish these ends of dimin- municipalities, and, subject to proof and approval ishing the total of international payments the Govern- thereof, for all remittances for scholarships by benevoment of the Republic suspended by Decree-Law No. lent, religious, or educational institutions. 124 of April 10, 1934, amortization payments on all ART. III. The issuance of drafts shall be subject to external debts until the economic situation of the proof that they come under the exceptions established country permits the Government of the Republic to in the preceding article. The bank or banker issuing obtain revenue in the sum of 60 million pesos; the draft shall report to the Treasury Department on Whereas at the same time and with the object of the date of issuance the name of the person or entity clarifying the situation and investigating the legitimacy making the draft, its purpose and justification. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1934 FEDERAL RESERVE BULLETIN 471 ART. IV. For the purpose of establishing cause for the (g) For the issuance of drafts to be applied to the issuance of drafts, the following rules shall be followed: payment of principal or interest on funds that are (a) For the importation of goods the applicant for imported after the promulgation of this decree-law, the draft shall present the invoice or order which the applicant shall present proof of the importation of has been made or shall bind himself to prove the im- the funds. portation of the goods within 90 days from the date of ART. V. There is created in the Treasury Departissuance of the draft. ment a bureau for the control of the exportation of (b) When the payment is on account of obligations capital, which shall be attached to the Bureau of Curcontracted prior to the date of this decree-law, docu- rency and shall take cognizance of all cases relating to ments setting forth the obligation must be produced and the exportation of capital. The organization of said statement must be made under oath that said obliga- bureau as well as the rank and number of its personnel, tion is in force and that payment is being made thereon. shall be determined by the regulations to be issued (c) At the time of leaving the country any national under this decree-law. or resident may take with him the sum of $500 in ART. VI. In all cases of issuance of foreign drafts, national currency. Likewise a maximum of $500 per the issuing bank shall take care to identify the appliannum may be drawn for Cubans and foreign residents cants and to record their addresses. of Cuba, who are abroad temporarily wrhen this decree- ART. VII. Every person who exports funds, directly law is promulgated. To this effect, the applicant for or indirectly, in violation of the provisions contained in this decree-law, as wrell as those who facilitate such the draft shall swear that it is being purchased for such exportation shall be imprisoned (arresto mayor), and persons and that sums in excess of the authorized maxitemporarily prohibited from engaging in commerce and mum have not been previously issued for their support. from holding public office. (d) For the transfer of principal or interest on bonds ART. VIII. Every product that is exported, the sale which are a lien upon properties located in Cuba and proceeds of which do not enter the country within 3 which belong to residents abroad, or for payment of months following the date of exportation, except when dividends on shares of Cuban companies whose stock special permits are issued by the Secretary of the belongs to residents abroad, the debtor or the company Treasury, shall be considered as funds indirectly buying the draft shall prove the existence of said obli- exported and subject to the penalites prescribed in the gation and shall swear that the person in whose favor preceding article. the draft is to be drawn has his customary residence ART. IX. When exports are made to persons residing abroad. abroad of the proceeds of their businesses or properties (e) For the purchase of drafts for the support of in Cuba in cases not specified in article II of this decreeoffices the purpose of which is to promote the exporta- law, a tax of 10 percent on the amount exported shall be tion of Cuban products, as well as for any other expense collected as part of the cost of the draft. for the same purpose, the applicant for the draft shall ART. X. The regulation and collection of the 10prove in advance the amount of such expenses and shall percent tax on drafts transmitting funds to persons obtain approval for such exportation from the Treasury residing abroad, in cases not falling within the excep- Department. tions in article II of this decree-law, shall be governed (/) Foreign insurance agencies and insurance com- by the provisions issued for the regulation of the tax panies may send by draft to their main office the pro- of one-fourth of 1 percent established by the law of ceeds from net premiums which they are entitled to July 15, 1925. collect in accordance with insurance contracts entered ART. XI. This decree-law shall take effect from the into in the country. In this connection they shall sub- date of its publication in the Gaceta Oficial of the mit monthly to the Treasury Department a sworn list of Republic. the insurance contracts concluded and the amount of Therefore, I order that this decree-law be fulfilled the net premiums which they are to send to their main and executed in all its parts. office. Net premium shall be considered that which Given at the Presidential Palace, in Habana, on the the company is entitled to collect after deducting the 2d day of the month of June 1934. commission granted to the agency in Cuba. CARLOS MENDIETA. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

472 FEDERAL RESERVE BULLETIN JULY 1934 FINANCIAL STATISTICS FOR FOREIGN COUNTRIES GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS [In millions of dollars] Europe Total End of month (5 t 0 r i c e o s u ) n- S U t n a i te te s d i Canada c T o o u t n a t l r i ( e 2 s 7 ) AAuussttrniaa Belgium Bulgaria s C l z o e v c a h k o i - a Denmark England France Germany rains of gold Ho fine; i.e., an ounce of fine gold—$20.67 1933—May 11,890 3,991 77 6,896 21 371 11 51 36 907 3,173 8S June 11,864 3,997 77 6,856 21 372 11 51 36 922 3,185 45 July 11,951 4,001 77 6,932 21 374 11 51 36 925 3,213 5£ August 12,010 4,009 77 6,989 21 375 11 51 36 926 3,223 73 September.. 12,063 4,011 77 7,038 24 376 11 51 36 926 3,218 87 October 12,070 4,011 77 7,040 24 377 11 51 36 927 3,176 94 November- 11,970 4,012 77 6,942 24 378 11 51 36 928 3,051 97 December. . 11, 942 4,012 77 6,916 27 380 11 51 36 928 3,022 92 1934—January 11,964 4,033 77 6,912 27 382 11 51 36 929 3,021 90 l=*15$£i grains of gold Ho fine: i.e., an ounce of fine gold=$85 1934—January a___ 20,251 6,829 130 11,697 45 646 19 86 60 1,573 5,109 152 February 20, 527 7,438 130 11,358 45 639 19 112 60 1,574 4,904 134 March _ 20, 738 7,694 130 11,313 45 635 19 111 60 1,574 4,947 96 April v 20,858 7,757 130 11,340 45 636 19 111 60 1,575 5,023 83 May v 21,002 7,779 130 p 11,426 45 635 19 111 60 1,577 5,136 52 June v 7,856 625 1,578 v 5,274 E urope—Continued End of month Greece Hungary Italy N l e a t n h d e s r- Norway Poland Po g r a t l u- Ru n m ia a- Spain Sweden Sw la it n z d er- U.S.S.R. Y sl u av g i o a - 6 c t o o ri u t e h n s e - r $1= 25 fio grainsof gold Ho fine; t..,t an ounce of fine gold=$20.67 1933—May 13 17 352 336 40 53 31 58 436 71 397 • 368 32 34 June 14 17 356 309 40 53 31 58 436 71 361 401 32 34 July 17 17 368 311 40 53 32 58 436 91 351 »401 32 36 August 19 17 370 332 39 53 32 59 436 97 351 •401 32 35 September. 21 17 371 338 41 53 32 59 436 101 356 416 32 35 October 21 17 371 359 40 53 32 59 436 101 373 » 416 32 35 November. 23 14 373 370 40 53 33 59 436 99 386 »416 32 35 December. 24 14 373 371 38 53 34 59 436 99 386 416 32 35 1934—January 22 14 373 370 38 54 34 60 436 100 386 » 416 32 35 grains of gold Ho fine; *,«., an ounce of fine gold=$85 1934—January *___ 23 633 626 64 91 58 100 739 169 653 3 704 53 58 February... 23 633 539 61 91 62 101 739 169 600 »704 53 £9 March 23 613 535 61 91 65 101 739 170 570 706 53 April 23 609 539 61 92 65 101 739 167 534 3 706 53 May 23 594 551 61 92 66 102 739 167 535 3 706 53 June 573 Latin America Asia and Oceania Africa End of month T t c r o o ( i 1 e u t 0 a s n ) l - g t A i e n r n a - - Chile lo C b m i o a - - M ic e o x- Peru g U u r a u y - o c tr o t i h u e e n s r - t c T r o i o ( e u 7 t s n a ) l - India Japan Java N l Z a e e n a w d - T ke u y r- co 2 u o n t t h r e ie r s t T c r o i o ( e u 4 t s n a ) l - EgyptA So fr u ic th a c o t o r th i u e e n s r - =25$io grains of gold Ho fine; i., ea.n ounce of fine gold—$20.67 1933—May 362 249 11 14 19 11 50 8 455 162 212 43 25 10 3 107 33 65 10 June 368 249 11 15 24 11 50 8 454 162 212 42 25 11 3 112 33 70 10 July 365 249 11 15 21 11 50 8 453 162 212 40 25 11 3 123 33 80 10 August 364 249 11 15 20 11 50 7 453 162 212 40 25 11 3 118 33 75 10 September.. 369 249 11 15 26 11 50 7 452 162• 212 39 24 11 3 115 33 72 10 October 365 249 11 15 23 11 49 7 453 162 212 40 25 11 3 123 33 80 10 November. . 358 244 11 15 20 11 50 7 456 162 212 42 25 11 4 125 33 82 10 December. _. 354 239 12 14 21 11 50 6 457 162 212 44 24 12 3 126 33 83 10 1934—January 355 239 12 14 21 11 51 7 459 162 212 45 25 12 3 127 33 84 10 $1=15%\ grains of gold Ho fine; i,e.f an ounce of fine gold=$85 1934—Januarya 601 405 20 24 36 19 86 11 778 274 359 76 42 20 6 215 56 143 17 February. _. 598 405 20 24 29 20 87 14 780 274 359 79 42 20 6 222 55 150 17 March 605 405 20 25 34 19 87 15 778 274 359 77 42 20 5 218 55 146 17 April P629 405 20 24 60 P19 87 v 15 781 275 362 77 42 21 6 220 55 149 17 May *>638 P405 P20 24 67 v 19 87 vYJ P803 275 382 79 M2 20 *>6P226 P55 154 v 17 /Preliminary. r Revised. i Differences prior to January 1934 between these figures and those shown elsewhere in BULLETIN for total monetary gold stock in United States are due to exclusion from the former of gold coin in circulation. a Figures given in terms of new par for purposes of comparison only; new parity did not become effective until after close of business Jan. 31, 1934. «Figures of last preceding statement issued by State Bank of the U.S.S.R. carried forward. NOTE—Figures for 35 countries are as of final day of month; for the other 15 countries—including England, France, and Netherlands—they are as of last report date of month. The countries for which figures are not shown separately are in Europe: Albania, Danzig, Estonia, Finland, Latvia, and Lithuania; in Latin America: Bolivia, Brazil, Ecuador, Guatemala; in Asia and Oceania: Australia and Siam; and in Africa: Algeria and Belgian Congo. For back figures and for additional details relating to this table, see BULLETIN for May 1932, pp. 311-318, and June 1933, pp. 368-372. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1934 FEDERAL RESERVE BULLETIN 473 GOLD PRODUCTION fin thousands of dollars] Production reported monthly Esti- Year and month m w a o t r e ld d Africa North and South America Far East pr t o io d n uc- Total A So fr u ic th a d R e h s o ia - A W fr e ic st a B C e o lg n i g a o n Canada S U t n at i e te s d i Mexico Co b l i o a m-Austra- $1' ne; i.e., an ounce of fine gold=$20.67 1932—August 43,361 36,956 20, 475 1,019 510 330 5,473 4,982 1,138 524 1,221 696 588 September- 42, 816 36,411 19,888 1,041 609 304 5,452 5,085 1,122 456 1,292 702 559 October 43,007 36, 602 20,157 1,044 515 314 5,264 5,271 1,091 455 1,216 727 547 November- 42, 627 36, 222 20,190 997 526 307 5,115 4,858 1,165 415 1,376 715 556 December.. 42,198 35, 794 20,118 1,080 539 294 5,420 4,651 671 353 1,418 668 Total (12mos.) 499,049 422,129 238,931 12,000 5,992 3,642 62,933 60, 626 12,070 5,132 14, 563 8,198 6,782 1933—January 42, 35, 206 20,152 1,008 532 280 4,826 4,341 1,194 504 1,129 666 574 February.. 38, 588 31, 606 18,176 989 531 263 4,718 3,059 1,095 334 1,178 654 603 March 43, 255 36, 273 19,658 1,038 522 302 5,378 5,230 1,059 455 1,259 747 626 April 40, 429 33, 447 18,430 1,108 528 281 4,900 3,928 905 535 1.522 726 585 May 41, 382 34, 400 19, 519 1,108 520 308 4,913 3,866 1,035 499 1,344 734 554 June 40, 458 33, 476 19,008 1,130 561 308 5,404 2,956 986 435 1,434 711 543 July 43, 649 34, 667 19, 228 1,133 571 306 5,285 3,638 1,165 577 1,420 755 589 August 43, 817 34, 835 19, 235 1,167 579 321 5,304 3,742 1,198 555 1,438 722 575 September- 44, 355 35, 373 18, 664 1,180 546 307 4,870 5,602 820 375 1,591 847 572 October 45, 077 36, 095 18,822 1,143 567 302 5,029 5,209 1,501 700 1,436 825 560 November.. 44, 653 35, 671 18, 613 1,150 586 327 4,981 5,292 1,172 694 1,501 794 560 December.. 44, 376 35, 395 18,168 1,181 580 325 5,119 5,581 1,038 503 1,538 788 573 Total (12mos.)- 512,226 416,445 227,673 13,335 6,623 3,631 60,726 50,338 13,169 6,165 16,790 8,968 6,919 1934—January. 45, 041 35,059 18,897 1,201 546 320 4,781 4,858 1,080 697 1,3 721 | 560 $1=15%\ grains of gold 9Ao fine; i.e., an ounce of fine gold=$35 February 70, 635 53, 587 28,893 1,893 927 502 7,803 6,160 1,906 1,067 2, 269 1,280 886 March 74,706 57, 657 30, 550 2,042 965 571 8,726 7,945 1,194 r940 2,415 1,390 921 April ' p 73, 374 " 56, 325 30,173 P2,021 941 P571 7,871 7,595 p 1,750 843 P2,415 PI, 225 P921 May i 31,324 991 v Preliminary. r Revised. 1 Monthly figures for United States are those compiled by American Bureau of Metal Statistics of New York City; annual figures represent official estimates made by Bureau of the Mint in cooperation with Bureau of Mines. NOTE.—For monthly figures back to January 1929 and for explanation of table see BULLETIN for April 1933, pp. 233-235, February 1934, p. 108, and June 1934, p. 377. For annual figures of world production back to 1873 see Annual Report of Director of the Mint for 1933, p. 104. GOLD MOVEMENTS [In thousands of dollars] United States Total Net imports from or net exports (—) to: Year and month net i e m o x r p p o o n r r e t t t s s E la n n g 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- C a a d n a - M ic e o x- 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 Customs valuations; with some exceptions at rate of $20.67 a fine ounce 1932—Total (12mos.) -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—January 128,465 50, 248 29, 490 1,067 15,123 5,274 634 15,193 5,612 3,729 2,042 February 17,776 3,310 -3,709 -1,546 -600 802 -1,614 4,206 552 -15 9,446 3,700 3,208 March i -22,081 -8, 935 -3, 630 -250 -199 -5, 005 -681 8,418 483 990 2,135 -15,413 April i -9,967 -2,191 -8,993 -724 333 488 1,281 -2,-973 -3,137 May ! -21,139 -15,715 -122 -115 110 344 83 -5, 729 June...- J -3,244 -2, 845 -72 -1,445 154 141 10 812 July ' -83,879 -713 -79, 617 203 369 -4,121 August -80,388 -1,535 -73,173 -216 -27 143 125 -5,708 September —56, 736 -5, 099 -48, 717 -13 -2,171 224 518 -1,486 October -32,351 -6, 240 -26,923 "-109 -18 -453 268 48 1,085 November -1,064 -2, 260 -366 -5 -28 216 240 1,139 December -9,128 -1,650 -203 -28 -10 -8, 883 347 338 Total (12 mos.) -173, 736 6,375-216. 035 -2,532 -895 7,901 -11,631 19, 896 4,280 -1 98 25,629 12,821 6,702; -26,355 1934—January —2,767|| -2,542 -10 -1,678 313 246I. 1,364 Customs valuations; with some exceptions at rate of $35 a fine ounce February I 452,571! 239,800 124, 381 131 57, 272 9,087 12,114 5,124 651 2,347 March j 237,336 135, 987 51, 821 10,148 3,569 10,272 5,368 2,490 11, 465 2,865 3,351 April '54, 748 24,054 1,786 7,234 9,069 '640 2,495 4,613 3, 067 1, 785 May 33,583 5,92^ 233 10 8 8, 673 2,086 2,554 10, 240 1,865 1,987 June p 62,147 28, 224 9,306 351 6,736 2, 212J. 12,900 2,224 1,941 1 $17,054,000 exported to Italy. J> Preliminary. r Revised. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

474 FEDERAL RESERVE BULLETIN JULY 1934 GOLD MOVEMENTS—Continued [In thousands of dollars] Great Britain Net imports from or net exports (—) to: Total Year and month net im- South e o x p ( r p o ) n o rt r e s t t s U S n ta it t e e d s 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- S la w n it d zer- A So m ic u a e t r h - Canada B In ri d ti i s a h S S m t e r e t a t n l i t e t s s - Au li s a tra- A d W R f e r h s e i o i c s a a - t , , c o t o A r th i u e l e n l s r - Africa Official figures converted at rate of $20.67 an ounce 1932—Total (12mos.)._ 84,585 -50,642-297,050 333 -13,434 - 71,378 -14,019 5,747 220,394 10, 781 20,264 255,310 18,279 1933—January—_ -43,260 -48,314 -2,109 -11 -634 -17,471 -8 9,495 587 793 16,530 -2,120 February. 18,400 -6,559 -4,623 28 -507 -7,816 -79 374 7,175 554 794 27,815 1,245 March 77,198 11,821 3,406 5,003 -1,294 -5, 225 -588 296 9,178 461 22, 659 28,923 2,556 April 64,767 -6 -1,519 18,092 -89 128 -893 198 10,278 1,001 20,316 19,343 -2,083 May 97,386 2,761 32,486 1,850 656 17, 365 -463 140 8,924 14,948 624 1,789 19,476 -3,169 June 77,671 15,923 -7,421 15, 254 8 6,477 -479 401 9,129 11, 281 1,359 1,717 17,954 6,069 July- 89,056 4,763 18,051 486 1,114 13,528 -118 414 4,141 11,942 810 2,692 19,519 11,715 August— 25,628 733 6,259 179 -1,034 -13,583 -380 436 8,703 4,994 848 1,910 24, 774 -3, 212 September 48,260 3,120 2,163 32 -11 -3,633 -101 920 4,108 12, 685 526 1,991 21,027 5,434 October... 63,918 12, 520 1,865 -11 18 -4,163 -217 3,611 6,579 16,122 782 1,942 20,467 4,403 November 79,138 6,878 33,338 94 817 329 -771 120 5,013 4,852 708 2,315 20,885 4,558 79, 426 4,441 15,130 42 147 -196 8,143 4,186 5,892 423 1,889 19,460 12,871 December 7,8 97,016 41, C -7,065 -4,299 14,056 43,374 118,817 8,682 60,81! 256,177 41, 667 Total (12 mos.) 4.788 9,805 -13 -20 5,310 -170 5,500 4,530 8,642 583 2,353 17,667 3,170 1934—January Official figure* converted at rate of $S5 an ounce February 184,820 -238,842 283,333 18,837 3,790 17,891 -320 4,8:701 30,193 647 2,951 30,881 30, 587 March 91, 471 -130,087 66,180 65, 579 358 5,522 -176 187 39 37,372 1,094 3,105 36, 707 5,591 April. ..- 35,003 -19,851 -7,038 3,524 44 523 -216 343 47 13,033 359 3,824 31,929 8,483 May 37, 986 -5,197 -30,856 8,243 -34: 319 -252 284| 75 14,147 485 3,086 42,935 4, 750 France Germany Net imports from or net exports (—) to: Net imports from or net exports (—) to: Total Total Year and month net net i e m o x r p p o o n r r e t t t s s U S n ta i t t e e s d E la n n g d - m G a e n r y - N la e e n r t d - h s - S l z a w e n r i d - t- c o t o A t r h i u e l e n l s r - i e m o x ( r p p ) n o o e r r t t t s s U S n ta i t t e e s d E la n n g d - France N la e e n r t d - h s - S l z a w e n r i d - t- U S. . R S . . c o t o A r th i u e l e n l s r - Official figures converted at rate of $20.67 an ounce 1932—Total (12 mos.)-- 828,178 468,052 37,889 37,547-17,668 -7,627 -27,282 367 -250 -38,170-24,455 -7,915 46,656 -3,515 1933—January -37, 399 -35,361 2,900 200 -3,814 -1,126 -197 4,424 -1,976 107 6,293 February. . -1,659 -144 2,559 678 2,805 -7,127 -432 -13,076 22 -10,429 93 3,336 March 16,729 9,287 1,005 1,266 27, 778 -23, 356 749 -13,163 -4,945 -4,925 46 3,956 April 48,252 18, 583 2,283 22, 520 670 -6,377 »10,574 -68, 750 1-17,822 -4, 541 75 5,411 May 96,140 -5,819 1,277 39,785 37,113 » 16,102 -9,938 46 -292 -10,102 -61 7,023 June 46,840 5-18,537 22,903 7,976 30,797 3,695 -36,432 1,453-13,676 -5,392 34 3,833 July 50,808 39,263-12,572 23,430 5,695 16,598» -21,605 4,592 -162 270 4,612 August 53, 694 75,680-11,533 -46 -6,837 -1,397 -2,174 -676 216 -186 -256 September. 43,043 60,990 -1,396 -8,059 -6,166 -2,176 -152 19,120 -32 17,910 1,173 October 26, 233 47, 745-1,686 -12,427 -3,369 1, 5,845 41 5,933 -94 3 November.. -52,936 177-24,646 '-3 -21,460 -5,674 -1,328 2,572 "77 -13 4,710 -5,268 3,182 December.. -45, 650 -19, 387 -772 701-23,368 -2,823 2,627 15 691 590 2,668 Total (12 mos.)._ 244,092 223,905 57,425 34,706 10,538 4,348-102,856 1,799-37,044 -64,922 -40,950 206 40,317 -2,26E v — 1934—January -7,217 1,215 -5,259 -2 -77 -1,196 -1,897 1,246 -20 —2,627 286 -80 3,638 49 Official figures converted at rate of $35 an ounce Februarys. •175,8371-92,336-160,187 12, 536 31,251 -1,7491 2 34,648 -18,363 -29,7901 -12,490 -455 -98 24,279 192 March •232,719 -79,158-155,630 3 15,955 -2,914 -10,974 -39. 440 -55,568 -2 -182 137 16,991 -817 April. ___ —1,384 1,164—40, 597 77 1,995 —1,201 2 37,176 —5, 655 —3,484 —8, 032 —8, 347 7 13, 544 657 May r> 30,914 124 33, 581 1 516 5,405 3-8,712 -27,917 -12,4221 -10,107 -12,354 29 6,774 162 *> Preliminary. 1 Except during January 1933, imports of gold from Switzerland are included under "All other countries" since they are not reported separately in the official monthly statistics. 2 $9,832,000 imported by France from South Africa in April 1933; $14,412,000 in May 1933; $28,176,000 in February 1934; $35,545,000 in April 1934. 3 $20,305,000 exported by France to Belgium in July 1933; $9,747,000 in May 1934. NOTE.—Great Britain and Germany—In some cases the annual aggregates of the official monthly figures differ somewhat from the revised official totals published for the year as a whole. German gold movements by individual countries for 1934 are subject to revision. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1934 FEDERAL RESERVE BULLETIN 475 GOLD MOVEMENTS—Continued [In thousands of dollars] Nethc;rlands Year and month Total net Net imports from or net exports (—)to: imports or net ex ( p - o ) rts 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 0fficial figure s converted at rate of $20.67 an ounce 1932—Total (12 mos.) 116,149 106,623 50,070 -34,009 26,886 -12, 727 -13,630 -16,137 16,423 -7,346 1933—January ... 1,898 -14,101 14,069 -837 2,009 673 -976 -1,100 2,199 -38 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 . . -18,102 603 -906 -18,188 3,609 -1,522 -358 -1,259 -79 May —41, 605 — 11,384 -37,068 11,178 -1,068 -1,479 -3,069 1,107 179 June -45,503 115 -6,390 -41,046 5,581 -1,797 -353 -1,702 108 — 18 July -13,628 -15,750 6,065 -180 -1,432 -1,174 -1,466 291 20 August 24,239 12,996 11,183 47 17 -194 -174 275 90 September 16,488 1,798 13,849 -903 -338 -10 -241 2,236 97 October 18,562 2,191 1,385 14, 457 -357 -22 —64 -1,232 2,099 105 November 9,688 -1,942 6,096 5,369 -90 -30 -297 441 142 December -9,294 -7,111 -601 -821 -230 -5 -658 31 99 Total (12 mos.) -67,510 -3,839 -1,624 -72,183 40,818 -17,873 -6,030 -16,974 9,632 567 1934—j anuary -8, 629 -7,082 -238 -367 -1, 220 33 246 Official fignires convertei at rate of $85 an ounce February -102,784 -17,262 -13, 283 -76, 485 233 4,077 -62 -257 21 235 March -9,201 -6,248 -4,928 -4,132 345 6,116 -141 -532 360 -42 April 3,063 -4, 444 -418 -287 7, 951 -8 -102 201 5 164 May 13,859 -115 -158 11,835 -68 1,696 311 —359 Switzerland British India Net imports from or net exports (—) to: Net imports from or net Year and month i e m o T x n r ( p o p - e n o t o ) t a r e r t l t t s s 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 i e m o T x ( r n p o p - e n o t o ) t a e r r t l t t s s U S n ta i t t e e e x s d por E l t a s n n g ( d — - ) t o o A t : h l e l r t I G i d p n o u r o d n o c l i - - d i a n r G e ( c c o m s o - r r r I ) e e e v n e r a a d e n - v s s i e r t n e e e n - s - I p i n ( c o n h r c r - r g i o e r v ) s e l a d i d a a s i e n - n t e s - e e in India India i Official figiires conwrted at rate of $20.67 an ounce 1932—Total (12 mos.) 169,786 124,354 15,342 7,418 7,880 101 14,996 -304 -195,662 -38,094 151,059 -6, 508 6,782 127 -189,007 1933—January 4, 658 123 2,393 -77 3 1,176 1,040 -11,910 -9, 741 -2,304 129 574 -11.342 February 8,502 -14 82 6,987 -77 2,461 -937 -12, 788 -9,413 -3, 328 -47 60S -1 -12,179 March -24, 440 653 907 21,306 -40 48 3,802 -2, 236 -12,722 -5,314 -5,833 -1,576 626 -12,096 April -12,078 -307 -10,745 —62 994 -1,958 -11,698 -4,311 -5,956 -1,430 585 -11,113 May -42,481 1,377 -4,082 -38, 776 -68 2,778 -3, 709 -13,016 -1,561 -8, 096 -3, 359 554 -12,462 June -41, 596 -3,152 -34, 751 6 288 -3,988 -14,004 -12,823 -1,181 543 -13,461 July.. -14,302 ""-307 -5, 739 -8, 324 -44 1,866 -1,756 -6, 298 -4, 734 -1, 565 589 -2 -5, 707 August -1,542 -229 1,135 57 -1,339 -1,166 -10,971 -9,105 -1,866 575 —1 -10,395 September.. . 1,656 16 -431 1,767 -41 149 130 64 -13,411 -12,789 -622 572 -12,839 October 4,073 502 -790 4,243 -86 1 78 124 -7, 643 -7,301 -342 560 -7,083 November.. . 3,553 -1,444 4,684 71 191 50 -5, 847 -6,023 176 560 -5, 287 December... 23, 996 8,756 -9, 474 23.299 -17 2 741 689 -5, 734 -5, 438 -296 573 -1 -5,160 Total (12 mos.) -41,121 10, 983-24, 536-26, 781 -379 205 13,168-13, 781 -126,048 -30,340 -83, 730 -11,979 6,916 -5 -119,124 1934—January 1,266 110 -247 180 82 1 1,187 -47 -14,063 12,683 -1,380 560 v-13,490 C)fficial figures ccnverled at rate of $31> an ounce February -30,1091 -10,898 -21, 567 2,233 -12 2 -365 499 -39. 307 -7,703 -31,678 74 886 -38,421 March -25,403 -1,617 -12,110 -7,799 -44 311 -4,143 -20,806 -8, 862 -11,664 -280 921 -5 -19,880 April... -43,753 -4,682 -38,189 -26 -2,132 1,277 P-20, 617 P921 186 *> -19,882 May. -11,582 -5, 350 -6,613 -16 -222 618 p-20, 037 P921 -2 *> -19,114 Preliminary. i Figures derived from preceding columns; net imports plus production minus increase in Government reserves in India. NOTE.—Netherlands and Switzerland—In some cases the annual aggregates of the official monthly figures differ somewhat from the revised official totals published for the year as a whole. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

476 FEDERAL RESERVE BULLETIN JULY 1934 GOVERNMENT NOTE ISSUES AND RESERVES [Figures are for last report date of month] 1934 1933 1934 1933 May Apr. Mar. May May Apr. Mar. May Argentine Conversion Office (millions of Canadian Minister of Finance (millions gold pesos): of Canadian dollars): Gold 247 247 247 257 Gold reserve against Dominion notes.. 70 70 Currency issued. 536 551 548 579 Advances to banks under finance act_. 40 42 Irish Currency Commission (thousands of Dominion notes: pounds sterling): Issued 171 172 173 175 Legal tender note fund: Outside chartered bank holdings.. 29 29 30 30 British legal tender and bank Indian Government (millions of rupees): balances 175 207 166 44 Gold standard reserve: British securities 6, 985 6,884 7,013 7,614 Gold _.. 29 29 29 179 Notes issued 7,160 7,091 7,179 7,658 Foreign exchange 505 505 505 354 Consolidated bank notes:» Paper currency reserve: Issued -. 4, 795 4,790 4,763 4,605 Gold ..__ 416 416 415 264 Deemed such under sec. 60 (4) of Silver 963 973 980 l,0P2 currency act, 1927 _. 1,191 1,199 1,214 1,312 Other assets 298 295 377 400 Notes issued 1,794 1,769 1,772 1,757 » Figures for consolidated bank notes issued represent daily averages for 4 weeks ended May 26, Apr. 28, and Mar. 3, 1934, and May 27, 1933. Figure for notes deemed to be consolidated bank notes are as of close of business on these dates. BANK FOR INTERNATIONAL SETTLEMENTS [In thousands of Swiss francs] 1934 1933 1934 1933 Assets Liabilities May 31 Apr. 30 May 31 May 31 Apr. 30 May 31 Gold in bars ___ 26,030 28,176 Demand deposits (gold) 25, 681 28,176 Cash on hand and on current account with banks 10,360 4, 612 6,962 Short-term deposits (various currencies) Demand funds at interest 11,983 11,763 43,897 Central banks for own account: Demand 57.165 45,804 95, 528 Rediscountable bills and acceptances (at Time—Not exceeding 3 months.. 107,176 106,063 139, 599 cost): Commercial bills and bankers' accept- Total.... — 164, 341 151,867 235,127 ances _. 163, 111 160,986 238,175 Treasury bills 196,190 195,249 167,320 Central banks for account of others: Demand 9,161 9,335 10,189 Total 350, 301 356, 235 405, 495 Other depositors: Demand 1, 026 1,044 6,567 Time funds at interest—Not exceeding 3 months 41,429 38,617 110,732 Long-term deposits: I Annuity trust account 153,640 153,640 152,624 Sundry bills and investments: German Government deposit 76, 820 76, 820 76,312 Maturing within 3 months: French Government guaranty fund. 40, 824 40, 410 56,918 Treasury bills 25, 620 20,191 35, f,73 Sundry investments 42,511 63, 632 47, 777 Total 271,284 270,900 285,853 Between 3 and 6 months: Capital paid in 125, 000 125, 000 125, 000 Treasury bills 55, 923 64,467 8,300 Reserves: Sundry investments 52, 472 31, 458 59, 540 Legal reserve fund 2,672 2 0°2 2 022 Over 6 months: Dividend reserve fund 4,866 3,895 3J 895 T Su re n a d s r u y r y in b v i e ll s s tments _. 35 9 , ,5 9 9 7 3 2 35 4 , ,8 9 0 6 5 0 594 Othe G r e l n ia e b ra il l i t r i e e s s e : rve fund 9,732 7, 790 7,790 Other asse T ts o : tal 222, 091 220, 511 151,785 S G u u n a d r r a y n t i y te o m n s commercial bills sold.. 5 4 3 , , 5 1 1 0 1 3 65 4 , , 4 2 5 3 1 2 } 34,377 Guaranty of central banks on bills Su s n o d ld ry items 4 5 , , 1 5 1 1 5 1 4 5 , , 3 4 4 5 7 1 1,696 Total assets 680, 821 669, 713 720,565 | Total liabilities 10,821 669, 713 720, 565 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

477 JULY 1934 FEDERAL RESERVE BULLETIN CENTRAL BANKS Assets of banking department Liabilities of banking department (Figures in B m an il k li o o n f s E of n g p l o a u n n d ds sterling) ( d i m n G e p e o i n a s ld s r t) t u - e C O o a in sb rese N rv o e t s es D ad is v a c a n o n d u c n e t s s Se t c ie u s ri- ci N t r i c o o u t n l e a- Bankers' D P e u p b o l s i i c ts Other l O ia t t i b h e i s e li r - 1933-May 31. 186.3 1.1 72.3 11.2 83.5 374.1 77.5 33.2 39.5 17.8 June 28. 189.4 1.2 74.2 16.6 87.2 375.1 105.1 14.1 42.2 18.0 July 26. 190.1 1.3 72.8 11.2 103.0 377.2 98.5 14.1 57.7 18.1 Aug. 30. 190.3 1.4 76.3 10.0 94.9 374.0 79.4 42.0 42.9 18.2 Sept. 27. 190.4 1.4 79.6 9.2 85.8 370.8 97.3 16.5 44.0 18.2 Oct. 25_. 190.4 1.3 81.2 8.5 92.5 369.3 104.1 15.9 45.8 17.7 Nov. 29. 190.6 1.2 80.4 8.6 84.7 370.2 106.9 13.6 36.5 17.8 Dec. 27. 190.7 1.0 58.7 16.8 101.4 392.0 101.2 22.2 36.5 18.0 1934—Jan. 31. 190.9 .9 84.2 8.2 88.4 366.7 100.6 25.2 37.8 18.1 Feb. 28. 191.0 1.0 83.6 5.8 87.9 367.4 90.3 32.1 37.7 18.2 Mar. 28. 191.1 1.1 72.3 5.6 88.1 378.8 94.5 17.5 36.9 18.3 Apr. 25. 191.2 77.5 5.3 86.3 373.7 99.5 15.8 37.0 17.7 May 30 191.3 73.2 5.6 87.6 378.1 99.4 14.0 36.1 17.8 June 27 191.5 •7 I 69.8 6.1 91.9 381.7 96.3 17.6 36.5 18.0 Assets Liabilities Bank of France Deposits (Figures in millions of francs) 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 t b g c i l e u o e s r t i i - a- a O s t s h e e ts r ci N t r i c o o u n t l e a- G m ov e e n r t n- Other l O ia t t i b h e i s e li r - 1933—May 26. 80,951 3,887 3,449 2,675 6,582 8.534 83,267 2,265 18, 393 2,152 June 30. 81, 243 3,990 2,791 2,766 6,489 9,243 84, 708 2,338 17.376 2,100 July 28. 81,976 3,975 3,461 2,661 6,463 8,503 82,853 2,752 19, 267 2,168 Aug. 25. 82, 227 2,652 3,207 2,688 6,417 8.543 81,143 2,775 19.657 2,158 Sept. 29. 82,095 2,632 3,475 2,765 6,393 8,716 82,994 3,685 17, 242 2,156 Oct. 27. 81,032 2,586 3, 560 2,781 6,238 8. 450 81,099 4,027 17, 301 2,220 Nov. 24. 77,822 1,250 4,092 2,814 6,186 8, 533 80, 368 2,956 15 016 2,359 Dec. 29. 77,098 1,158 4,739 2,921 6,122 8,251 82,613 2,322 13,414 1,940 1934—Jan. 26.. 77,055 1,130 4,486 2,893 6,119 7,870 79,474 2.270 15,836 1,972 Feb. 23. 73,971 1,070 5,963 2,932 6,114 7,960 81,024 1. 868 13, 067 2,052 Mar. 30. 74,613 1,068 6,198 2,972 6,007 8,229 82,833 1,721 12, 632 1,900 Apr. 27. 75, 756 1,066 5,707 3,016 5,973 8,152 81, 502 2,024 14,199 1,944 May 25. 77, 466 1,094 5,011 3,060 5,950 8,202 79.992 2,996 15, 681 2,114 June 29 79, 547 1,156 4,386 3, 076 5,929 0) 82, 057 3,289 15,189 0) Assets Liabilities Reichsbank Reserves (Figures in millions of reichsmarks) Foreign Tre b a il s l u s ry b c i O h ll e s t c h ( k e a s r n ) d Se lo c a u n ri s ty Se t c ie u s ri- O as 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 - Gold exchange 1933—May 31.. 372 3,078 166 317 618 3,469 439 782 June 30.. 189 3,212 210 321 747 3,482 447 834 July 31. _ 245 3,171 165 320 736 3.492 412 820 Aug. 31.. 307 3,151 163 320 749 3, 521 415 841 Sept. 30.. 367 3,289 205 320 688 3,625 465 850 Oct. 31— 396 3,147 143 319 799 3,571 416 850 Nov. 30- 405 3,001 163 518 773 8,542 478 871 Dec. 30.. 386 3,177 183 581 735 3,645 640 836 934-Jan. 31-. 376 2,845 81 620 843 3,458 498 863 Feb. 28., 333 2,766 248 666 801 3,494 530 802 Mar. 29._ 237 3,144 144 681 685 3,675 547 768 Apr. 30... 205 3,140 140 639 760 3,640 515 788 May 31.. 130 3,174 125 643 860 3,635 538 778 June 30 P 70 3,392 171 685 780 3,777 623 775 p Preliminary. 1 Not yet available. NOTE.—For explanation of table see BULLETIN for February 1931, pp. 81-83. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

478 FEDERAL RESERVE BULLETIN JULY 1934 CENTRAL BANKS—Continued [Figures are for last report date of month] 1934 1933 1934 1933 Central b^nk Central bank May Apr. Mar May May Apr. Mar May National Bank of Albania (thou- Central Bank of China—Continued. sands of francs): Note circulation 70,029 69,077 46,192 Gold... - - 7,124 7,224 7,316 Deposits—Government. _. 239, 534 215, 396 132,514 Foreign exchange 24, 266 24, 532 27, 852 Bank__ 37,098 41,579 38,987 Loans and discounts 2,871 2,944 2,919 Other 7,226 8,424 10, 387 Other assets— 3,044 2,883 2,564 Other liabilities 84, 680 85,626 68,885 Note circulation 11,445 11,710 13,627 Bank of the Republic of Colombia Demand deposits 15,531 15, 394 19,145 (thousands of pesos): Other liabilities. 10, 329 10,480 7,879 Gold at home and abroad 3 16, 336 15, 538 14, 989 14, 783 Commonwealth Bank of Australia Foreign exchange 2,871 2,345 2,702 3,271 (thousands of pounds): Loans to member banks 3,498 6,741 6,594 3,751 Issue department: Note circulation 36,950 35,926 34,903 25, 256 Gold and English sterling... 15, 508 15, 508 11,507 Deposits,. 25,406 27, 056 28, 430 19,115 Securities 28, 625 28, 625 24, S52 National Bank of Czechoslovakia Banking department: (millions of koruny): C Lo o n in d , o b n u b ll a io la n n , c a e n s d cash --. 23, 546 22,912 18, 9 5 6 3 5 3 G Fo o r l e d i g * n balances and currency 4._ 2,66 2 2 7 2,66 3 2 7 2,66 64 1 1, 9 7 9 0 8 7 Loans and discounts 14, 528 14, 634 16, 390 Loans and advances 1,390 1,317 1,562 1,597 Securities.. 36,109 36,108 33,990 Note circulation 5,179 5,242 5,544 6,138 Deposits.. 80, 313 78,893 71,367 Deposits 919 752 697 632 Note circulation __ - 46, 551 40,910 41,961 Danish National Bank (millions of Austrian National Bank (millions of kroner): schillings): Gold 133 133 133 133 F G o o r l e d i 1 gn exchange of the reserve.. 24 0 1 24 0 1 18 0 9 1 3 5 9 0 L Fo o r a e n i s g n a n b d il l d s i , s e c t o c unts 6 1 9 0 6 1 7 2 7 1 2 6 7 1 1 5 Other foreign bills1 38 36 24 0 Note circulation-_ 358 366 369 331 Domestic bills 278 301 308 264 Deposits 118 111 74 Government debts.. 624 624 624 659 Bank of Danzig (thousands of gulden): Note circulation 931 970 981 898 Gold — 26, 984 25, 987 30,160 31,914 Deposits 190 163 154 193 Foreign exchange of the reserve.. 16, 778 16, 802 11,340 7,483 National Bank of Belgium (millions Other foreign exchange 2,776 . 308 121 1,409 of belgas): Loans and discounts 15, 739 15, 685 15, 881 8,969 G-ld 2, 699 2,703 2,700 2, 671 Note circulation.__ 40, 706 40, 677 41, 280 37, 083 Domestic and foieijm bills. 717 723 705 741 Deposits 13, 674 12, 552 10, 848 7,341 Loans to State 347 347 347 363 Central Bank of Ecuador (thousands Note circulation 3, 517 3,463 3,456 3,638 of sucres; Deposits 386 449 433 291 Gold at home and abroad _. 16, 878 16, 417 14, 275 Central Bank of Bolivia (thousands Foreign exchange 7,352 6,916 1,874 of bolivianos): Loans and discounts 49, 776 50, 018 40,898 Gold at home and abroad 14, 543 18,604 Note circulation 40, 859 37,711 28, 311 Foreign exchange 10, 069 4,115 Deposits 22, 511 23, 070 19,399 Loans and discounts 21,707 27,129 National Bank of Egypt 2 (thousands Note circulation 57, 254 44,127 of pounds): Deposits. 76, 383 31, 354 Gold - 1 6,546 6,546 6,663 C N B e a a o n n t f i N k T D L N t G N L G O C C o l r e o o o n o e e o a o u o o t o v h t l a a a t p l r r f t v t d a e a e l r n e n r o e f l e B e ) B r s s o s B r : c c s n f r r n a i s i a i a p o a a e c t r r i n m n n o s r z y i g n c c k g e . d d i n k h u u e l i n g d t l l n o d d a a o ( n e t f l e i i m t f t i n s s x i i a o e c c t o C o i c B b s x b l o o n n h l i h c u l i u u l . a . a i o i h i l . n n b g n l t . g n a e i t t r g a a s e n s s o e t s r g ( i o a i e m a o i d f n n i m ( l s r l m . i i e . l o i s r l n e e l s i i r o s v ) o n e : f s .. 2 3 2 1 1 1 2 , , , , , , , 0 5 7 6 1 5 4 3 1 1 4 7 1 7 7 7 9 2 2 0 1 4 7 3 8 2 8 4 5 0 6 0 1 3 3 2 2 1 2 1 , , , , , , 9 4 7 3 2 7 5 5 6 1 4 2 6 2 4 8 3 2 3 8 3 2 1 0 0 1 2 7 2 3 4 4 4 2 3 2 2 1 1 1 , , , , , , , 4 4 7 7 6 3 5 6 1 0 1 5 0 2 4 2 8 0 3 4 9 1 5 8 0 9 9 7 5 3 2 3 3 8 2 2 2 2 1 1 , , , , , , 8 6 5 5 8 1 9 6 5 4 2 1 6 7 5 7 7 2 7 9 0 0 1 3 1 6 9 4 3 7 3 7 Bank F L D N D B N L N O G O o o o r o e e o o e o t t G i r h h a a p f t p l t t t e d e e e e o n n i o o E f i s r r s s v o g s s c c s h r i n e l i a a i i a t , t e i t r r r s o s a n s n i c e n c s g — n b — d d u x e m u E n i i t l c a l O B l O d d G s g a G i e h a ( e t i t i y a t n t t a o i t x s i s o h h h e n o i t p n c c v c v e o s o e n k g o t o h s e r e r n i u e e e u u a r a r s . n c r n n n n n . a s u m . g t t m , ' n s s r e e i d e t n a s i n e t n t o s . d f - kr o o - t o h n e i r ) 2 3 1 0 4 8 2 6 7 3 , , , , , , , 2 5 2 6 5 2 4 7 1 7 6 6 2 5 4 9 2 0 0 9 4 i I ! : 2 3 1 1 1 3 9 9 0 5 7 6 4 7 2 8 4 2 4 3 5 , , , , , , , , , , , , , , , 6 7 7 6 3 8 9 2 1 5 2 2 7 4 5 2 0 3 9 7 7 8 9 4 5 6 9 4 1 4 9 7 9 7 7 4 2 7 3 8 6 2 0 0 1 3 2 2 3 1 1 5 3 4 0 4 3 5 4 9 9 7 7 2 6 0 , , , , , , , , , , , , , , , 2 3 1 1 8 5 4 8 9 4 3 5 4 5 3 3 0 1 0 0 6 5 4 5 3 2 4 0 4 3 6 9 8 4 6 9 8 2 4 0 0 0 2 4 0 3 2 3 1 1 1 4 4 0 0 5 7 7 1 3 7 3 2 8 9 1 , , , , , , , , , , , , , , , 7 7 6 7 5 2 9 0 8 5 5 7 7 2 7 3 0 3 0 2 6 5 9 8 2 2 9 5 4 2 9 1 1 1 5 2 4 4 7 2 2 5 4 7 1 Gold at home and abroad 97 Bank of Finland (millions of mark- Fore B ig a n n k exchange for account of: 72 71 kaa G ): old. 323 323 323 309 Exchange commission 7 7 7 Balances abroad and foreign Loans and discounts 117 98 143 credits 1,031 1,054 756 Government debt 721 721 679 Foreign bills- 322 328 328 353 Note circulation 538 544 511 Domestic bills 793 717 749 Deposits 376 352 353 Note circulation 1,244 1,309 1,322 1,124 Central Bank of China 2 (thousands Other sight liabilities.. 491 440 332 465 of yuan): Bank of Greece (millions of drach- Gold — - 7,181 4,248 1,984 mas): Silver. - 116, 720112, 556 76,825 Gold and foreign exchange 4,131 4,052 3,966 2,531 Due from banks abroad 40, 229 41,478 13,863 Loans and discounts. 3,862 3,791 3,594 1,867 Due from domestic banks 77,208 67,989 22,085 Government obligations 3,355 3,355 3,355 3,368 Loans and discounts. 132,133 135,131 126,143 Note circulation 5,117 5,114 5,098 4,574 Securities.- 13,115 13,180 8,371 Other sight liabilities— 6,780 6,484 6,066 3,555 Other assets. --- 51,981 45,520 47,694 Liabilities in foreign exchange..,. 46 64 72 164 1 Beginning Apr. 30,1934, gold valued at rate of 1 schilling=0.16667 gram of fine gold instead of 0.21172 as formerly. Foreign exchange valued at market. 2 Items for issue and banking departments consolidated. 3 Gold acquired since Mar. 20, 1934, valued at purchase price. * Gold content of koruna reduced on Feb. 17, 1934, from 44.58 milligrams of fine gold to 37.15 milligrams. r Revised. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1934 FEDERAL RESERVE BULLETIN 479 CENTRAL BANKS—Continued [Figures are for last report date of month] 1934 1933 1934 1933 Central bank Central bank May Apr. Mar. May May Apr. Mar. May National Bank of Hungary (millions Bank of Portugal—Continued of pengos): Discounts and advances __. 317 326 334 331 79 79 79 97 Government obligations 1,051 1,051 1,051 1,053 Foreign bills, etc 11 11 15 16 Note circulation 1,914 1,890 1,965 1,889 Loans and discounts 565 570 583 466 Other sight liabilities 840 755 635 Advances to treasury ... 49 49 49 51 National Bank of Rumania (millions Other assets 29 28 30 22 of lei): Note circulation _ 342 351 360 347 Gold.. 10, 057 10,034 10, 010 Deposits 69 68 79 65 Foreign exchange of the reserve.. 143 210 215 721 Certificates of indebtedness 118 118 120 0 Other foreign exchange 14 1 2 25 Miscellaneous liabilities 178 175 171 211 Loans and discounts. _. 6,915 8,731 9,074 9,863 Bank of Italy (millions of lire): State debt 5,681 5,681 5,681 5,726 Gold at home 6,667 6,840 6,874 6,688 Note circulation 21,021 21,258 21, 479 21, 470 Credits and balances abroad 35 40 44 369 Demand deposits _ 7, 506 7,353 7,318 7,736 Loans and discounts 4,904 5, 484 6, 037 5,228 South African Reserve Bank (thou Note circulation- 12,889 12,987 12,963 12,991 sands of pounds): Bank P A T O N G G u o d o t o o o h b t l v t f v a d e e l a e l i r s J c n r a d n d i c p s d e e e m s a p e s p u n e p o o e a n o s s d n ( t i i s m t d t i s s b t i s o d ll . n i i . s o _ d c n s o s u o n f t s yen): 1 1 , , 3 4 7 4 4 3 1 0 9 5 2 1 9 3 0 1 2 0 6 2 5 1 1 , , 3 4 7 4 2 3 2 2 0 5 7 9 3 7 9 0 3 4 6 0 2 1, 3 9 4 8 4 2 5 8 5 0 2 7 9 8 9 9 0 5 7 7 1 1 1 , , 3 4 2 4 4 7 0 2 0 8 1 1 2 5 5 0 3 8 8 5 5 D D G F N o o o e o r p l m t e d e o i e g s c s n i i t t r i s c c b — u i b l l B O l G a i s l t a t l o i s h n o v e k n e r rnment _ • ' : I ! 1 ; 2 1 2 1 8 0 3 8 3 , , 3 , , , 6 9 6 . 0 1 6 7 3 6 8 3 7 9 3 1 9 2 1 2 2 2 2 1 1 2 7 8 3 2 1 , , , , , , 7 3 6 4 6 0 1 3 7 1 5 4 4 6 0 0 0 0 9 4 2 2 1 1 7 7 2 3 1 1 , , , , , , 3 8 9 2 7 7 4 2 7 8 4 0 6 1 5 4 1 0 5 2 1 1 4 9 8 2 3 1 , , , , , , 8 5 9 7 2 2 7 1 0 2 0 5 9 4 6 1 3 5 7 4 5 Bank of Java (millions of florins): Bank of Spain (millions of pesetas): Gold ._ — 116 113 113 107 Gold... i 2,263 2, 202 2, 262 2, 259 F L o o r a e n i s g n a n b d i ll d s iscounts 5 1 9 6 0 1 5 0 8 3 1 7 1 S B i a lv la e n r ces abroad _ ; 2 6 8 81 4 6 28 7 7 8 2 6 8 7 3 4 6 2 3 8 4 0 Note circulation 185 186 191 199 Loans and discounts .: 2,370 2, 448 2,510 2,510 Deposits 29 32 28 37 Note circulation 4, 607 4,649 4, 668 4,703 Bank of Latvia (millions of lats): Deposits 1,000 947 898 915 Gold 44 44 44 45 Bank of Sweden (millions of kronor): Foreign-exchange reserve 4 4 3 3 Gold _'.. 368 367 374 266 Bills 65 65 65 67 Foreign bills, etc _. 462 491 513 264 Loans— __ _.. 63 64 64 50 Loans and discounts 59 55 54 152 Note circulation - 31 32 33 32 Note circulation 60 L 617 644 544 Government deposits __ _. 57 58 57 62 Deposits 457 476 484 317 Other deposits.. 111 108 107 97 Swiss National Bank (millions of Bank of Lithuania (millions of iitu): francs): Gold 54 54 54 48 Gold _— 1,636 1,634 1,746 2,056 Foreign currency... 12 13 13 10 Foreign balances and bills 8 4 1 4 Loans and discounts.. 79 83 86 87 Loans and discounts _. 132 142 136 58 Note circulation 83 85 90 92 Note circulation _ 1,354 1,388 1,405 1,514 Deposits— 62 62 61 51 Demand deposits 444 405 482 638 Netherlands Bank (millions of flor- Central Bank of the Republic of ins): Turkey (thousands of pounds): Ban D k D N F G F G L o o o o e o o o o r r p a f m l l t e e d d e n o N i i e s g s g c s o i n n i a t t r r i s n w c c b b d u a i a c l l l y l d r a a s e t i n ( i d s c o m c i e n t o i s s l u l a i n o n t n d - s s . b o i f l l k s roner) _ : . 8 9 2 1 1 1 0 1 7 3 7 2 1 7 0 2 5 1 8 2 9 2 7 2 1 9 5 7 1 1 9 3 2 5 8 3 0 2 5 1 9 2 1 1 1 0 7 3 0 7 1 1 4 5 3 1 2 2 8 9 2 1 1 1 2 3 5 3 5 7 2 2 8 7 2 9 1 3 5 7 N D G F G O O O o e o o t t t o h h h r p l t v e d e e e e o e i r r r g s r c i n n l s a i t i r e s m s a c e s c b u e x e u i l t n c r l s a i i h t t t t a i i i s e e o n e s s n g c e urities 1 1 2 3 3 5 2 5 5 0 6 3 3 2 8 9 8 , , , , , , , , 8 1 4 0 8 2 6 1 1 1 3 5 8 6 2 1 3 5 6 7 5 1 9 1 1 1 2 3 3 2 5 5 5 5 0 3 0 8 7 8 3 , , , , , , , , 0 2 9 1 1 3 5 6 3 7 5 2 9 9 8 9 9 3 7 2 0 2 4 5 1 1 2 3 3 5 2 5 5 3 2 3 0 5 7 9 9 , , , , , , , , 4 8 4 3 1 0 3 5 3 4 0 7 8 6 7 7 1 6 4 4 4 7 0 5 1 1 2 2 5 6 4 2 5 6 1 0 2 6 8 2 , , , , , , , 0 2 2 0 9 7 6 6 6 8 4 3 9 4 2 8 8 1 5 0 4 8 6 2 Note circulation _ 314 322 330 296 Bank of the Republic of Uruguay Foreign deposits _ 2 2 2 2 (thousands of pesos): Cen T tr o al t a R l e d s e e p r o v s e i t B s ank of Peru (thou- 77 73 61 91 L G o o a ld ns and discounts 4 9 9 5 , , 4 0 3 1 0 3 49,434 9 4 7 9 , ,8 8 6 6 9 8 1 4 0 8 0 , , 4 96 4 5 2 sands of soles): Other assets 41, 342 44,105 45,465 43, 075 Gold and foreign exchange 41,852 53,530 Note circulation 74,978 78,494 79,483 81, 027 Bills.... - 54,994 56,185 27,198 Deposits—Demand 31,271 33,044 35,394 28, 709 Note circulation 64,557 64,941 60,012 Time 41, 587 41,408 41,339 41,828 Deposits _ 22,582 26, 046 14, 499 Judicial and admin- Bank of Poland (millions of zlote): istrative 2,729 2,709 2,701 3,024 Gold _ 483 481 472 Other liabilities 35,220 34,870 34, 286 37,894 Foreign exchange 46 58 67 89 National Bank of the Kingdom of Loans and discounts 703 709 745 783 Yugoslavia (millions of dinars): Note circulation 911 931 955 1,004 Gold. 1,766 1,762 1,766 1,796 Other sight liabilities 220 230 232 156 Foreign exchange 146 120 129 146 Bank of Portugal (millions of escu- Loans and discounts 1,835 1,849 1,876 2,325 dos): Advances to State 2,319 2,317 2,317 2,414 Gold 874 867 701 Note circulation _. 4,119 4,169 4,232 4,453 Other reserves 367 385 360 385 Other sight liabilities. 1,135 1,070 944 944 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

480 FEDEBAL RESERVE BULLETIN JULY 1934 COMMERCIAL BANKS Assets Liabilities (10 clearing o f b p an o k u E s n n . d g s l a F s n i t d g er u l r in es g ) in millions v d E B C a u n u a a e g l s n t h l f k a a r o n i o n n m d f d M c n a o s l o h n l t o e a i y c r n t e d at B co il u ls n t d e i d s- Securities L cu o s a e t n r o s s m to - a O s t s h e e ts r Total D D e e p m o a si n ts d1 Time1 lia O bi t l h it e i r es 1933—July 205 96 362 554 771 221 1.973 993 933 235 August 208 91 359 563 762 216 L, 966 990 928 233 Sfiptfimhftr 215 91 355 563 753 215 ,958 989 924 233 October. . 218 89 343 559 752 222 1,951 983 916 233 November 216 99 317 569 741 228 L,928 980 905 241 December 213 119 311 565 740 237 L,941 1,015 900 244 1934—January 223 130 284 558 738 232 L.920 974 893 244 February 209 118 250 560 746 231 L.867 932 881 246 March 219 120 202 547 757 226 1,831 910 880 240 April 222 132 212 534 763 230 .853 919 890 240 May. 218 131 223 542 759 225 1,858 (2) (2) 238 Assets Liabilities (4 large banks. f F r F a ra n i n g c u c s) e res in millions of v d B C a u u a a e l n s t h f k r a o i o n n m f d D b u a e n f k ro s m B co il u ls n d te i d s- i s n L e c l c o o lu u a a d r n n i i s s t n y , g a O s t s h e e ts r Total D D e e p m os a i n ts d Time c O ep w t n a n a c c e - s lia O b t i h li e ti r es France 1933—July 8,738 1,723 20,236 7,848 1,521 35,676 34,671 1,005 379 4,011 August 8,027 1,600 19,851 7,813 1,565 34,426 33,419 1,007 360 4,069 September . 7,907 1,504 19,835 7,792 1,540 34,181 33,217 964 253 4,144 October 7,094 1,480 20,229 7,880 1,626 33, 786 32,811 976 257 4,266 November 6,333 1,545 19,876 8,127 1,707 33,009 32,075 933 258 4,322 December 5,870 1,416 19,848 8,309 1,827 32,635 31, 773 862 273 4,362 1934—January . .. 6,373 1, 574 19,169 8, 537 1,034 32,809 31, 969 841 284 3,592 February 4,650 1,724 18,174 8,956 1,130 30, 736 29,891 845 334 3,564 March 5, 001 1,634 17,990 8,514 1,202 30,390 29,571 819 345 3,606 April 5,308 1,578 17, 981 8,600 1,224 30, 660 29, 827 833 318 3,715 Assets Liabilities ( i R n e m po il r l t i i o n n G g s e b o r f a m n r a e k n i s c y . h sm Fi a g r u k r s e ) s v d C R a u u a e e l s i t c h f r h a o i s n n m - c Du b e a n fr k o s m B co il u ls n d te i d s- i s n L e l c c o o l u a u a n r d n i s i s t n y , g Securities a O s t s h e e ts r Total D D e e p m o a si n t d s Time b o C a b f n r t r a e o k i d m s n i f e t o s d r lia O b t i h li e t r ies bank customers 1933—July . . 169 646 1,907 4,682 2,383 1,163 7,018 3,237 3,781 852 3,081 August 150 637 1,937 4,677 2,297 1,175 6,971 3,155 3,816 805 3,097 September 186 657 1,870 4,627 2,303 1,178 6,960 3,242 3,717 753 3,110 October. 152 614 1,962 4,642 2,304 1,207 6,993 3,200 3,793 733 3,155 November. 159 621 1,970 4,608 2,331 1,222 7,015 3,155 3,859 709 3,187 1934—January 2 February 139 612 2.127 4,458 2,387 1,196 7,159 3, 254 3,905 661 3,100 March 179 610 2,027 4, 482 2,417 1,192 7,153 3, 294 3,860 646 3,108 April... 166 603 2,103 4.390 2,477 1,195 7,166 3, 260 3,906 648 3.120 May. 169 619 2,160 4,309 2,478 1,184 7,185 3,260 3,925 631 3,103 Assets Liabilities Canada Entirely in Canada Security D ex e c p l o u s d i i t n s g p i a n y te a r b b le a n i k n d C ep a o n s a i d ts a loans (10 chartered banks. Figures l i a n r s m ) illions of Canadian dol- v t r C a r i e n a u a s l l e s t c h r g e v a o n i n e l n - s d d Se lo c a u n ri s ty l b c o i o O a l u l n t s n s h d t e a e i r n s d - d d a f u b n o e a d r e n f i n r k g o e s n m t Securities a O s t s h e e ts r ci t r i c o u n la- Total Demand Time lia O bi t l h it e i r es 1933—July... . - 197 109 1,042 151 866 448 120 1,958 578 1,380 733 August 192 105 1,026 146 866 437 121 1,924 551 1,373 727 September 187 110 1,031 176 881 435 129 1,964 591 1,372 727 October _. 191 111 1,037 156 882 450 122 1,983 633 1,350 721 November 210 105 1,008 149 861 444 121 1,925 567 1,358 732 December 197 106 1,036 134 861 432 121 1,920 563 1,357 725 1934—January. 194 104 1,012 135 832 428 113 1,877 526 1,351 714 February 193 102 1,011 144 833 442 117 1,885 530 1, 355 724 March— _ . 187 103 1,029 159 835 427 128 1,893 526 1,367 718 April 187 101 1,044 169 837 448 121 1,944 568 1,376 722 May 187 103 1,037 176 830 469 119 1,964 597 1,368 719 i Excluding deposits of the National Bank relating to offices outside England, which are included in the total. 2 Figures not available. NOTE.—For back figures and explanation of table see BULLETIN for October 1933, pp. 639-646 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1934 FEDERAL RESERVE BULLETIN 481 DISCOUNT RATES OF CENTRAL BANKS Central bank of— Date effective E la n n g d - France m G a e n r y - Italy N l e a t n h d e s r- Sw la i n tz d er- b C an e k n t o r f a — l R Ju a 1 l t ~ v e I s n i n e c f e f — ect b C an e k n t o r f a — l R Ju a l t y e I s n i n e c f e f — ect I D n e e c f . f e 1 c 0 t Dec. 1,1931. 6 8 7 7 3 2 A A l u b s a tr n i i a a 4 71 H /2 | | J N un o e v . 2 1 8 6 , ,1 1 9 9 3 3 3 4 J Ja a v p a an 3 4 .65 J Ju u l l y y 1 3 , , 1 1 9 9 3 3 4 3 Feb. 18, 1932._. 5 Belgium Latvia Jan. 1,1933 Mar. 9._. 6 Bolivia 6 July 5,1932 Lithuania 6 2 Apr. 1,1930 Mar. 10 4 M M a a r r . . 2 1 1 7 6 B C u h l il g e aria 7 / J A a u n g . . 2 2 3 ,1 ,1 9 9 3 3 4 2 N Pe o r r u w . a . y _. 6 M M a a y y 2 2 0 4 , , 1 1 9 9 3 3 2 3 Apr. 9 5M Colombia.. 4 July 18,1933 Poland 5 Oct. 26,1933 Apr. 19. . . 2K Czechoslo- Portugal Dec. 8,1933 Apr. 21.. 3 vakia Jan. 25,1933 Apr. 28 5 Rumania 6 Apr. 5, 1933 May 2 5 Danzig 3 Mav 6,1933 South Africa. May 15,1933 May 12.. _. 2A Denmark... Nov. 30,1933 Spain.. 6 Oct. 26,1932 June 30 2 Ecuador 4 2 Nov. 30,1932 Sweden _ Dec. 1,1933 Sept. 22 4 Estonia Feb. 1,1932 Jan. 9, 1933 4 Turkey Mar. 2,1933 May 12 Finland Dec. 20,1933 U.S.S.R.. .. 8 Mar. 22,1927 J Ju u l n y e 1 2 5 9 4 2 G H r u e n e g c a e r . y 7 2 O Oc c t t . . 1 18 4 , , 1 1 9 9 3 3 2 3 Yugoslavia... 7 Feb. 9.1934 July 29 VA India Feb. 16,1933 Aug. 15. . 3 Sept 4 3H Sept. 19. 2H Changes since June 1: Austria—June 28, down from 5 to 4^ percent; D Fe e b c . . 9 1 , 1 19 .. 3 . 4 3 3 Jam—July 1, down from -\y2 to 4 percent. June 1 In-effect July 1,1934. 2 4 3 23-12 2 MONEY RATES IN FOREIGN COUNTRIES Netherlands (Amster- England (London) Germany (Berlin) dam) Month j 3 B a a a m c n n c c o k e e n p e s t r t , h - s' s T m b re i o l a l n s s t , u h 3 r s y Da m y o -t n o e - y day o a B n l l a d o n w e k p a e o n r s c s i e ' t s: d P is r r i c a v o t a e u t n e t M 1 o m ne o y n t f h or Da m y o -t n o e - y day d P is r r c i a v o t a e u t n e t M 1 o m ne o y n t f h or 1933—April .59 .50 3.87 i 5.25 5.05 .66 1.00 May .50 .37 3.87 | 5.50 5.24 2.11 1.69 June .50 .40 3.87 I 5.50 4.93 2.18 2.06 July .48 .40 3 87 : 5.50 5.19 3.54 2.64 August .41 .30 3.87 ! 5.50 4.94 1.11 1.08 September .44 .31 3.87 ! 5.50 5.00 .77 LOO October.._ .79 .73 3.87 j 5.50 5.11 .50 1.00 November. 1.05 .94 3.87 ! 5.50 5.18 .45 1.00 December. 1.06 1.15 3.87 j 5.50 4.97 .52 1.00 1934—January... 1.01 .90 H i 3.87 4.78 4.74 .50 1.00 February _. .95 .86 81 3.87 4.91 4.78 .78 | 1.00 March .95 .84 3.87 5.00 4.89 1.24 1.07 April .96 .89 'A ! 3.87 5.11 4.76 2.07 1.85 May .91 .85 3.87 5.13 4.72 P 1. 22 PI. 23 Sweden Switzer- Belgium France Italy Hungary (Stock- Japan (Tokyo) land (Brussels) (Paris) (Milan) holm) Month d P is r r i c a v o te a u t n e t d P i r s r i c a v o te a u t n e t d P i r s r i c a v o t a e u t n e t d P is r r i c a v o t a e u t n e t c c i o a P l m r i p m m a e p e r e - r Da m y o -t n o e - y d ay ^ mm % nno+ U n\, P toh s \™f b ™ ill ™ s \ : on~ v n ae F rrv o n .i S ing hyy ht 1933—April 1.50 2.50 1.87 4.00 A 5. 48-5.84 2.37 May 1.50 2.41 1.76 4.00 3K 3.1/2-6 5.11-5.84 2.19 June 1.50 2.31 1.50 4.00 3^2 3 -5 5.11-5.48 2.74 July _. 1.50 2.31 1.39 4.00 VA 5.11-5.48 2.37 August 1.50 2.31 1.45 4.00 34 5.11-5. 48 2.37 September. 1.50 2.27 1.13 3.55 33/ 5.11-5.48 2.56 October 1.50 2.21 1.25 3.50 5.11-5.48 2.56 November. 1.50 2.12 1.85 3.50 ! 5.11-5. 48 2.56 December. 1.50 2.25 2.26 3.00 2H-4H 5.11-5.48 2.56 1934—January 1.50 2.14 2.12 3.00 5.11-5.48 2.37 February.. 1.50 2.05 2.59 3 00 5.11-5.48 2.56 A M p a r r i c l h 1 1. . 5 5 0 0 2 2 . . 1 0 4 7 2 2 . . 7 7 5 0 4 3 . .0 0 0 0 3}/2 5 5 . . 1 1 1 1 - - 5 5 . . 4 4 8 8 2 2 . . 5 3 6 7 May 1.50 2.60 3.00 I p Preliminary. NOTE.—For explanation of table see BULLETIN for November 1926, pp. 791-796; April 1927, p. 289; July 1929, p. 503; November 1929, p. 736; and May 1930, p. 318. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

482 FEDERAL RESERVE BULLETIN JULY 1934 FOREIGN EXCHANGE RATES [Averages of daily quotations based on noon buying rates for cable transfers in New York. In cents per unit of foreign currency] | I Year and month ( A p ti r e n g s a e o n ) - l (p t A o r u a u s l n - ia d)2 A ( li s u n c s g h t ) i r l i 3 - a B ( e b l e g l i g u a m ) ( B m r i a lr z e i i l s )! B ( u le lg v a ) r 3 ia C (d a o n ll a a d r a ) C (p h e i s l o e ) i ( C y h u i a n n a ) C (p b o e i l a s o o m )1 - ( C p u es b o a ) ( s C k lo o z v e ru c a h k n o i a a - )! ( m k D r a e o r n n k - e) I 1929_ _.. 95.1274 480.83 14. 0575 13. 9124 11.8078 0. 7216 99. 2472 12. 0601 41.9007 96. 5512 99. 9647 2.9609 | 26. 6802 1930. 83.5050 458. 60 14. 0891 13.9524 10. 7136 .7209 99.8424 12. 0785 29.9166 96.4930 99.9515 2.9640 26. 7650 1931 66. 7375 351. 50 14. 0227 13.9285 7.0290 .7163 96. 3258 12.0669 22. 4369 96.5697 99. 9295 2.9619 I 25.0581 1932. 58. 4433 279.93 13.9599 13.9137 7.1223 .7193 88.0896 7.9079 21. 7357 95. 2750 99.9409 2. 9618 18. 8317 1933 72. 8009 337. 07 15. 4478 17. 8996 7. 9630 1. 0039 91. 9587 7. 6787«28. 5779 81.6966 99.9464 3.8232 19. 0709 1933—June 71. 0601 329. 22 14. 2007 17. 0460 7. 6369 .8142 89. 8853 7. 5210 26.1289 86. 2100 99. 9212 3. 6527 18.4423 July 80. 7251 369. 44 15. 6719 19.4505 7. 8727 .9977 94. 4683 8. 3752 29. 2666 86. 2100 99.9199 4.1545 20. 7682 August 79.4328 358.13 15. 4794 19.1458 8.0331 1.0347 94. 2796 8.1986 28.0737 86. 2100 99.9481 4. 0777 20.1157 September 86. 0861 371. 26 16. 6534 20. 6994 8.1508 1.2434 96. 4734 8.6743 29. 6843 78.1476 99.9583 4. 4089 20. 8344 October 86.1188 371.47 16. 7694 20. 7215 8. 4634 1. 2590 97. 5958 8. 8731 29.8462 65. 7136 99.9223 4. 4172 20.8413 November 92. 0439 409. 75 18. 0434 22. 3176 8.5660 1. 6378101.1829 10. 0983 32.9030 66.7200 99.9617 4. 7600 22.9975 December 33. 3311 407. 50 17. 6811 21. 7280 8. 5995 1.3436 100. 5515 9. 5952 33.4468 63.9668 99. 9579 4.6487 22.8463 1934—January 33. 5007 402. 44 17.9115 22. 0360 8. 5637 1. 3472 99.5246 9.4476 34. 0007 66. 9396 99.9578 4. 7039 22. 5487 February 33. 5494 400. 78 18.5650 22. 8893 8.4666 1. 3464 99.1675 9. 5966 34.3077 69. 9523 99. 9616 4. 4432 22.4721 March 33.9553 405. 86 18.9114 23. 2981 8.5420 1. 3324 99. 7871 10.1294 34. 6190 67. 6663 99. 9535 4.1531 22. 7384 April 34. 3475 410. 54 18. 8724 23. 4416 8. 6004 1. 3295100. 2070 10. 2595 34.1506 59. 9228 99.9288 4.1720 23.0051 May 34.0413 407.10 18. 9429 23.4137 8. 6046 1. 3154100.1859 10. 2531 32. 4621 61. 4642 99.9329 4.1755 22. 7948 June 33.6552 402. 24 18.9021 23. 3628 8. 4734 1. 2503100. 7936 10. 2233 33. 0523 57. 8900 99. 9726 4.1590 22. 5395 Year and month (p E o g u y n p d t ) E (p n o g u l n an d d ) ( F m in ar l k a k nd a; F (f r r a a n nc c ) e ( m m r G e a a i e c r n r k h y - ) s- ( G d m r r e a a e c ) c h e - (d H K o o o l n l n a g g r) H (p u e n n g a g r o y )r ( I r n u d p i e a e) I (l t i a r l a y ) J ( a y p e a n n ) M (p e e x s i o c ) o ' | 1929 498. 0689 485. 6879 2. 5160 3.9161 23. 8086 1. 2934 47.1669 17. 4414 36. 2020 5. 2334 46. 0997! 48.1830 40.1622 1930 498. 6002 486. 2126 2. 5169 3. 9249 23. 8541 1. 2959 33. 8530 17. 4939 36.0672 5. 2374 49. 3898 47. 1331 40. 2251 1931 465.1111 453. 4990 2. 3875 3. 9200 23. 6302 1. 2926 24. 3305 17. 4522 33. 6895 5. 2063 48. 8509 '35.4919 40. 2298 1932 359. 5406 350. 6067 1. 5547 3. 9276 23. 7492 .8320 23. 4604 17. 4460 26. 3468 5.1253 28.1112 31.8500 40. 2949 1933 434. 3908 423. 6821 1. 8708 5. 0313 30. 5179 .7233 29. 4516 22. 3598 31. 8159 6.7094 25. 6457 28.1025 51. 7209 1933—June 424. 0440 413. 5581 1.8241 4. 8035 28. 8097 .6917 29.1358 21. 2415 31. 0652 6. 3789 25. 7587 27. 6650 49. 0086 July 477. 0204 464.9915 2.0511 5. 4588 33. 2627 .7902 32. 9584 24. 5147 34. 9283 7. 3697 28. 7727 27. 9968 56.1833 August 461. 7534 450. 2670 2.0008 5. 3749 32. 7144 .7743 31. 5922 24. 2387 33. 8489 7. 2176 26.9026 28.1103 55. 3799 September 478. 1479 466. 4722 2. 0693 5. 7724 35. 4307 .8372 33.1050 26. 0897 35. 0051 7.8076 27. 2539 28.1492 59.8831 October 460. 4633 466.8290 2. 0683 5.8167 35. 4267 .8397 33. 2821 26. 3520 35. 0366 7.8208 27. 7670 28.1692 59. 9529 November 527. 4832 514.9737 2. 2700 6. 2678 38. 2361 .9053 36. 6896 28. 2302 38. 3408 8. 4331 30.3618 27. 7989 64. 5642 December 524.6387 511. 5890 2. 2700 6.1216 37. 3247 .8856 37.1537 27. 6855 38. 3870 8. 2204 30. 7418 27. 7355 62.8466 1934—January 518. 2824 504, 9336 2. 2449 6.2110 37. 5872 .8949 37.6811 28. 0425 37.9739 8. 3076 30.1136 27. 7434 63. 6167 February 516. 0390 503. 2596 2. 2288 6. 4648 38.8841 .9253 38. 0999 29.1191 37.8567 8. 5757 29. 7536 27.7313 j 66. 0382 March 522.3447 509. 3917 2. 2470 6. 5801 39. 6599 .9413 38. 6842 29. 6125 38.3335 8. 5763 30. 0093 27.7224 67, 2956 April 528.4813 515. 3425 2. 2702 6. 6161 39. 5890 .9452 38.1556 29. 7652 38. 7557 8.5641 30. 3124 27.7222 | 67.8471 May 510. 6279 2. 2540 6.6131 39.4712 .9462 36. 2293 29. 7559 38. 3329 8. 5176 30. 2276 27. 7432 I67. 9056 June 504. 8046 2. 2311 6. 5993 38. 2953 .9449 36. 4890 29. 7529 37. 9072 8. 5989 29.9041 27.7492 ! 67. 8148 Year and month ( Z p e N o a u e l n a w n d d )2 N (k o r r o w n a e y ) P (z o l l o a t n y d ) P ( o es r c tu u g d a o l ) R ( u n le m i u a j a- (p S e p s a e i t n a) ( S S m d t e o r e t l a t n l l i a e t t r s s - ) S (k w ro ed n e a n ) S ( w f l r a a i n t n z d c e ) r- ( T p u o r u k n e d y ) U (p A S n o o i f u o r u i n n c t d h a o )2 f Uruguay! 1929 483. 21 26. 6827 11.1940 4.4714 0. 5961 14. 6833 56.0117 26. 7839 19. 2792 48. 4105 483. 27 98. 6294 1. 7591 1930. 468. 22 26. 7598 11.2051 4. 4940 .5953 11. 6670 55.9639 26.8543 19. 3820 47. 0608 483. 79 85. 8650 1.7681 1931 415. 29 25. 0546 11.1970 4. 2435 .5946 9.5453 52. 4451 25. 2540 19. 4009 47.1814 480. 76 55.3572 1.7680 1932 320.19 18. 0039 11.1823 3.1960 .5968 8. 0438 40. 3970 18. 4710 19. 4049 47. 2854 476. 56 47. 0639 1. 6411 1933 340. 00 21. 4292 14. 4135 3. 9165 .7795 10. 7189 49. 2320 22. 0324 24. 8355 60. 4396 414.98 60.3360 ! 1. 7607 1933—June. 330. 09 20.8811 13. 8229 3. 7694 .7448 10. 3638 47. 963C 21. 2819 23. 5665 57.8085 408. 76 55.9871 i 1.6708 July 370. 19 23. 3627 15. 6202 4. 2468 .8766 11. 6540 54. 0460 23. 9784 26. 9583 65. 7080 459. 33 65.1372 j 1. 9032 August 359. 02 22. 6451 15. 4348 4.1521 .8374 11. 4565 52. 3634 23. 2263 26. 5265 64. 4507 444. 39 64.7589 1.8909 September 372.17 23. 4400 16. 6963 4. 4655 .8934 12.4087 54. 2920 24. 0532 28.7299 69.8292 448. 57 70.1510 2. 0274 October 372. 40 23. 4451 16. 7103 4.5315 .9112 12. 4343 54. 5740 24. 06S0 28. 7902 67. 2262 461. 23 70.7755 i 2. 0443 November _ 411.04 25. 8723 18. 0564 4.8623 .9817 13.1129 60. 0625 26. 5491 31. 0223 75. 7400 509.29 76.2484 i 2. 2035 December 408. 72 25. 7075 17. 7024 4. 6892 .9547 12. 7918 59.7025 26.3911 30. 2473 73. 7068 505. 76 74.5870 ! 2.1628 1934—January 403. 47 25. 3722 17. 9281 4. 6505 .9614 13.0042 58. 9185 26. 0418 30. 6420 75. 0781 499. 09 75. 8051 2.1818 February 401.81 25. 2835 18.5984 4. 6321 .9923 13. 3001 58. 7852 25.9554 31. 7374 77. 7923 497. 42 78.7499 2. 2468 March 406. 84 25. 5834 18. 9043 4. 6709 1.0013 13. 6175 59. 6007 26. 2620 32. 2857 79.1507 503. 42 80.1921 2. 2648 April 411.63 25. 8824 18. 9554 4. 7085 1. 0060 13. 7024 60. 3487 26. 5643 32. 4593 79. 6284 509. 43 80. 6081 2. 2718 May... 408. 28 25. 6463 18.9514 4. 6677 1. 0032 13. 7050 59.8173 26. 3199 32. 5277 79. 6204 504. 80 80. 5539 2. 2725 June 403. 39 25. 3559 18. 8879 4. 6253 1. 0020 13.6776 59.1709 26. 0211 32. 4969 499.10 80. 2G68 2. 2702 1 Nominal since April 1933. 2 Nominal since April 1934. 8 Partly nominal since April 1933. 4 Paper peso, equivalent to 44 percent of gold peso, quoted in place of latter beginning Dec. 13, 1933. Average for 1933 is for gold peso from Jan. 1 to Dec. 10, inclusive. Average for December 1933 based on paper peso for Dec. 13-31. Average of gold peso for Dec. 1-10 was 75.8904 cents. No quotations Dec. 11 and 12. 5 Beginning Apr. 10, 1933, new yuan, containing 23.4934 grams of pure silver, quoted in place of old yuan, containing 23.9025 grams of pure silver- Average for 1933 is for new yuan from Apr. 10 to Dec. 31, inclusive; average for old yuan from Jan. 1 to Apr. 9, inclusive, was 20.2103 cents. Average for April based on new yuan for Apr. 10-30. Average of old yuan for Apr. 1-9 was 20.5383 cents. 6 Silver peso quoted in place of gold peso beginning July 30, 1931. Average for 1931 is for silver peso from July 30 to Dec. 31, inclusive. Average for gold peso for Jan 2-July 29 was 47.6510 cents. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1934 FEDERAL RESERVE BULLETIN 483 PRICE MOVEMENTS IN PRINCIPAL COUNTRIES WHOLESALE PRICES—ALL COMMODITIES [Index numbers] Year and month (1 U 9 S 2 n t 6 a i = t t e e 1 s d 00) (1 C 92 a 6 n = a 1 d 0 a 0) (1 E 9 n 1 g 3 l = a 1 n 0 d 0) (19 F 1 r 3 a = n 1 c 0 e 0) ( G 19 e 1 r 3 m = a 1 n 0 y 0) (19 I 1 t 3 a = ly 100) 1 ( 9 O J 0 a c 0 p t = o a 1 b n 0 e 0 r ) (1 N 9 l 1 e a 3 t n h = d e 1 s r 0 - 0) 1926 100 100 148 695 134 602 237 145 1927 95 98 142 642 138 495 225 148 1928._ 97 96 140 645 140 462 226 149 1929 .... 95 96 137 627 137 445 220 142 1930 86 87 120 554 125 383 181 117 1931 73 72 104 502 111 328 153 97 1932 65 67 102 427 97 304 161 79 1932—December. 63 64 101 413 92 296 185 76 1933—January... 64 100 411 91 292 185 75 February.. 64 404 91 286 180 74 March 64 390 91 281 177 72 April 65 387 91 279 176 71 May 67 383 92 279 177 72 June 68 102 403 93 281 180 73 July 71 102 401 94 279 182 73 August 69 103 397 94 278 180 73 September. 69 103 397 95 276 182 75 October. _. 68 103 397 96 274 180 75 November. 69 103 403 96 273 179 76 December. 69 103 407 275 176 77 1934—January... 71 105 405 276 176 79 February.. 72 105 400 275 178 80 March 72 104 394 275 177 79 April 71 103 387 273 177 79 May 71 102 381 273 176 77 WHOLESALE PRICES—GROUPS OF COMMODITIES [Indexes for groups included in total index above] United States (1926=100) England (1913=100) France (1913=100) Germany (1913=100) Year and 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 ia u u l s c - ts p an 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 l t - s P s r io o n v s i- a t f r n I i i n n d a d i l s s u r h e a s m e - w d i- p tr I r i i n o s a d d h l u e u f d i s c n - t - s products 1926 100 100 100 155 144 581 793 129 132 130 150 1927 _ 99 97 94 152 136 599 678 138 129 132 147 1928 106 101 93 152 134 584 697 134 133 134 159 1929 ._ 105 100 92 145 132 579 669 130 125 132 157 1930 88 91 85 127 116 526 579 113 113 120 150 1931 _ 65 75 75 112 100 542 464 104 96 103 136 1932 48 61 70 111 97 482 380 91 86 89 118 1932—December.. 44 58 69 108 97 456 375 84 80 87 114 1933—Janu ary 43 56 67 107 97 455 373 81 81 87 113 February . . . 41 54 66 105 96 443 370 82 80 87 112 March 43 55 66 102 95 417 368 83 79 87 112 April 45 56 65 101 95 407 369 82 77 87 111 May 50 59 67 102 98 390 376 84 77 88 112 June 53 61 69 104 101 418 390 85 78 89 112 July 60 66 72 101 103 414 389 87 77 90 113 August 58 65 74 104 102 407 389 88 76 90 113 September .. . 57 65 76 105 102 413 383 90 75 89 114 October 56 64 77 104 102 417 379 93 73 89 114 November 57 64 77 104 102 425 384 94 73 89 114 December . 56 63 78 103 103 432 385 94 73 89 114 1934—January 59 64 78 104 105 424 387 93 73 90 114 Februnry 61 67 79 104 106 416 386 92 73 91 115 March 61 67 79 101 105 413 378 91 73 91 115 April .-. 60 66 79 99 105 404 372 91 74 91 115 May _ _ ._ 60 07 79 100 104 405 360 92 90 115 74 Sources.—See BULLETIN for March 1931, p. 159. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

484 FEDERAL RESERVE BULLETIN JULY 1934 PRICE MOVEMENTS IN PRINCIPAL COUNTRIES—Continued RETAIL FOOD PRICES COST OF LIVING [Index numbers] [Index numbers] United England France Germany United England France Germany Year and month States (July (July (1913- Year and month States (July (Jan.-June (1913- (1913=100)1 1914=100) 1914=100) 14=100) 3 (1913=100) 1914=100) 1914=100)1 14=100) » 1926 161 161 113 144 1926.. 175 170 103 141 1927. 155 156 113 152 1927... 173 164 104 148 1928 154 157 112 152 1928... 171 166 105 152 1929 157 154 124 155 1929... 171 164 113 154 1930 147 145 125 143 1930... 164 158 118 147 1931 121 131 124 128 1931... 148 148 116 136 1932 102 126 109 112 1932... 134 144 107 121 1933—January 95 123 102 107 1933—January 142 117 February 91 122 103 107 February... 141 117 March. 91 119 101 106 March 139 106 117 April 90 115 99 106 April 137 117 May 94 114 97 110 May.. 136 118 June 97 114 97 111 June 128 136 105 119 July _ 105 118 95 111 July 138 119 August 107 119 97 110 August 139 118 September 107 122 98 111 September.. 141 "I65" 119 October 107 123 101 112 October 141 120 November 107 126 103 113 November. 143 120 December 104 126 104 114 December.. 135 143 "I67" 121 1934—January 105 124 105 114 1934—January __. 142 121 February 108 122 103 114 February. . 141 121 March 109 120 100 114 March 140 107 121 April 107 118 98 114 April 139 121 May 108 116 97 113 May 137 120 1 Since August 1933 the Bureau of Labor Statistics has published biweekly indexes. Figures given are for the date nearest 15th of month. 1 Index represents prices converted to gold basis of 1914. 3 Average of October 1913, January, April, and July 1914=100. Sources.—For both retail food prices and cost of living: United States— Bureau of Labor Statistics, Department of Labor; England—Ministry of Labour; Germany—Statistisches Reichsamt; France—For retail food prices, Statistique Generate, and for cost of living, Commission d'gtudes relatives au cout de la vie a Paris. SECURITY PRICES [Index numbers except as otherwise specified] Bonds Common stocks (1926 average= 100) Year and month ( U a S p v n r t e a i i c r t t e a e e ) g s d e ( 1 D E 9 e 2 n c 1 g e = l m 1 a 0 n b 0 d e )1 r ( a 1 g 9 F 1 e r 3 a = n 1 a c 0 v e 0 e ) r- G ( p a e r v r i e c m r e a a ) g n 1 e y U S n ta i t t e e s d England 1 France Germany Number of issues _ 60 87 36 169 421 278 300 329 1926 _ 97.0 110.0 57.4 100.0 100.0 100.0 100.0 1927 98.9 110.7 71.7 118.3 107.0 123.2 145.0 1928 98.7 112.3 80.8 85.5 149.9 115.9 178.1 136.1 1929 95.7 110.2 85.1 81.4 190.3 119.5 217.6 122 8 1930 . 98.3 111.8 95.8 83.3 149.8 102.6 187.6 100.2 1931 _ 96.1 108.4 96.9 2 83.4 94.2 78.9 132.2 2 78.0 1932 __ 81.1 113.2 88.6 2 67.1 48.4 67.9 105.2 2 50.3 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 76.7 118.4 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 May 82.0 118.1 78.5 81.5 62.9 75.4 100.4 67.2 June 86.8 118.7 79.5 80.1 74.9 79.0 105.2 65.7 July 89.6 117.9 80.0 78.2 80.4 83.9 106.0 62.8 August _ 89.9 120.1 80.2 7a 5 75.1 84.4 105.2 60.7 September... _. 87.9 121.2 81.4 78.2 74.8 85.3 103.0 57 3 October 86.5 122.3 81.1 84.7 69.5 82.9 98.3 57.0 November 82.6 122.3 79.6 87.9 69.1 80.9 95.7 58 7 December 83.6 122.0 79.9 89.6 70.4 81.4 95.3 61.8 1934—January _ _ 88.3 123.6 78.7 92.0 75.6 85.5 92.3 64.4 February 92.9 124.3 78.7 91.6 80.5 87.0 91.8 67.8 March . 95.1 126.2 76.9 91.9 77.1 87.3 85 0 70 6 April 97.0 126.9 81.9 91.3 79.6 88.1 88.8 68.8 May. 97.6 125.8 84.7 90.7 71.8 87.1 90.1 67.2 1 Annual indexes are unweighted averages of monthly indexes. 3 Exchange closed from July 13 to Sept. 2, 1931, and from Sept. 19,1931, to Apr. 11,1932. Index for 1931 represents average of months January- June; index for 1932 represents average of months May-December. Sources.—See BULLETIN for February 1932, p. 121. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1934 FEDBEAL RESERVE BULLETIN 485 LAW DEPARTMENT Discounts for individuals, partnerships, and corpora- The Federal Reserve Board is authorized by tions section 32 to issue permits for correspondent In its circular of July 26, 1932, published in relationships between member banks and the FEDERAL RESERVE BULLETIN for August dealers whenever it finds that it is not incom- 1932, on page 518, the Federal Reserve Board patible with the public interest to do so, and granted authority to all Federal Reserve banks the Board has decided that it is not incompatto discount eligible notes, drafts, and bills of ible with the public interest to grant permits exchange for individuals, partnerships, and authorizing correspondent relationships becorporations, subject to the provisions of the tween member banks and dealers in securities law, the Board's regulations, and that circular. in connection with underwriting and dealing The authority, which was originally granted for in the securities exempted from the restrica period of 6 months beginning August 1, 1932, tions contained in section 5136 of the Revised has been extended from time to time and was in Statutes. January of this year extended until the close of Heretofore the Federal Reserve Board has business on July 31, 1934. The Board has followed the practice of issuing individual perdecided to extend such authority for an addi- mits covering such correspondent relationships, tional 6 months, and, accordingly, has amended but in order to relieve member banks and section II of its circular of July 26, 1932 to read dealers from the burden of preparing and filing as follows: formal applications in cases of the kind herein described, the Board has granted a blanket AUTHORIZATION BY THE FEDERAL RESERVE BOARD permit under section 32 for the period until The Federal Reserve Board, pursuant to the power December 1, 1934, authorizing correspondent conferred upon it by the amendment hereinbefore relationships between any member bank or quoted, hereby authorizes all Federal Reserve banks, for banks and any dealer or dealers in securities in a period ending at the close of business on January 31, connection with underwriting and dealing in 1935, to discount eligible notes, drafts, and bills of exchange for individuals, partnerships, and corpora- those securities excepted from the restrictions tions, subject to the provisions of the law, the Board's contained in section 5136 of the Revised regulations, and this circular. Statutes, namely, obligations of the United States, general obligations of any State or of Permit to member banks relating to participation in any political subdivision thereof, obligations underwriting and dealing in municipal and other issued under authority of the Federal Farm securities Loan Act, obligations issued by the Federal Section 32 of the Banking Act of 1933 pro- home loan banks, and/or obligations issued by hibits correspondent relationships between mem- the Home Owners7 Loan Corporation. Each ber banks of the Federal Reserve System and member bank which exercises the privilege dealers in securities unless there is a permit granted by such permit shall furnish to the therefor issued by the Federal Reserve Board. Federal Reserve agent at the Federal Reserve Such correspondent relationships include regu- bank in the district in which the member bank lar associations between member banks and is located such information concerning its operadealers in securities in connection with under- tions under this permit as the Federal Reserve writing and dealing in securities, and section 32 Board may require. does not contain any exception based upon the kind of securities underwritten or dealt in. However, paragraph 7 of section 5136 of the Securities company within provisions of sections 20 Revised Statutes of the United States, as and 32 of Banking Act of 1933 amended by the Banking Act of 1933, specif- The Banking Act of 1933 was enacted on ically excepts certain municipal and other June 16, 1933, and section 20 of that act obligations from the restrictions upon underbecame effective June 16, 1934, and reads in writing and dealing in securities by national part as follows: banks contained in such section 5136. These restrictions and the exceptions thereto are also SEC. 20. After one year from the date of the enactmade applicable to State member banks by the ment of this Act, no member bank shall be affiliated in any manner described in section 2 (b) hereof with any provisions of section 9 of the Federal Reserve corporation, association, business trust, or other Act as amended. similar organization engaged principally in the issue, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

486 FEDERAL RESERVE BULLETIN JULY 1934 flotation, underwriting, public sale, or distribution at comply with the requirements of section 20 wholesale or retail or through syndicate participation of the Banking Act of 1933. of stocks, bonds, debentures, notes, or other securities. Section 32 of the Banking Act of 1933 reads in part as follows: The Federal Reserve Board recently considered the question whether a trust company SEC. 32. From and after January 1, 1934, no officer or director of any member bank shall be an officer, which was affiliated with a member bank director, or manager of any corporation, partnership, within the meaning of the provisions of section or unincorporated association engaged primarily in 2 (b) of the Banking Act of 1933 and which was the business of purchasing, selling, or negotiating engaged in the business of issuing and selling securities, * * * unless in any such case there is a permit therefor issued by the Federal Reserve Board; mortgage bonds was a corporation carrying on and the Board is authorized to issue such permit if in the kind of business described in section 20 of its judgment it is not incompatible with the public the Banking Act of 1933". The business of the interest, and to revoke any such permit whenever it company involved was as follows: finds after reasonable notice and opportunity to be heard, that the public interest requires such revocation. The trust company made loans secured by first mortgages on improved real estate and the In the case discussed above it also appeared obligations secured by such mortgages were that directors of the trust company were also assigned to one of two corporate trustees, in directors of a member bank. In view of the accordance with the terms of a trust agreement, facts described above, the Board also ruled to secure the payment of bonds of the trust that the trust company was engaged primarily company which were issued and sold to the in the business of selling or negotiating securpublic by the trust company. It appeared that ities within the meaning of section 32 of the these bonds were issued serially in denomina- Banking Act of 1933. tions of $100, $500, or $1,000 each; that the bonds bore interest payable semi-annually; Membership in Federal Reserve System of trust comthat at the time of the Board's consideration of panies doing substantially no banking business the matter the rate of interest on such bonds During the past several years the Board has then being issued w^as 4% percent; that the taken the position that it would not admit to bonds were negotiable in form; that the bonds membership in the Federal Reserve System were the direct obligations of the trust comtrust companies which do substantially no pany; that in addition to obligations secured by commercial banking business, but recently it mortgages certain securities of specified classes reviewed the question and decided that it might be deposited with the trustees to secure should give consideration to applications for the payment of such bonds; that it was the membership from trust companies of this type. practice of the trust company to authorize the Accordingly, the Federal Reserve agent at issue of such bonds in series of $1,000,000 or each of the Federal Reserve banks has been less, although the whole amount of each series requested to inform any trust company in his might not in every case be sold; and that it was district that may have been advised that it the practice of the trust company to issue the would not be admitted to membership because series of bonds with maturities of either 5 or 10 it was doing substantially no commercial years. It also appeared that the trust combanking business that the Board will give conpany received deposits to some extent and did sideration to its application for membership if a considerable amount of trust business. Howit desires to file one. ever, it appeared that the principal business of the trust company was the making of mortgage loans and the issuance and sale of its mortgage Act of June 16, 1934, extending for 1 year the tempobonds. rary plan for deposit insurance, etc. After careful consideration of this matter There is published below the text of an act the Board ruled, in view of all the facts in- signed by the President on June 16, 1934, volved, that the trust company was engaged which amends in several particulars section principally in the issue and sale of securities 12B of the Federal Reserve Act relating to within the meaning of section 20 of the Bank- deposit insurance, amends the Reconstruction ing Act of 1933, and that, in view of the af- Finance Corporation Act, and amends section filiation of the trust company with a member 31 of the Banking Act of 1933. Important bank, appropriate action should be taken to I provisions of this act include the extension for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

487 JULY 1934 FEDERAL RESERVE BULLETIN 1 year of the temporary plan for deposit insur- "Each mutual sayings bank, unless it becomes ance, the increase in the amount of insured subject to the provisions of the preceding paragraph in the manner hereinafter provided, shall be excepted deposits of one depositor .in one bank from from the operation of the preceding paragraph and $2,500 to $5,000, and authority for the Recon- for each such bank which is so excepted the amount struction Finance Corporation to purchase eligible for insurance under this subsection for the debentures or other obligations of the Federal purposes of the October 1, 1934 certified statement, any entrance assessment, and, if levied, the additional Deposit Insurance Corporation in an amount assessment, shall be the amounts not in excess of up to $250,000,000. $2,500 for the deposits of each depositor. In the event any mutual savings bank shall be closed on account of inability to meet its deposit liabilities the [PUBLIC—No. 362—73D CONGRESS] Corporation shall pay not more than $2,500 on account of the net approved claim of any owner of deposits in [S. 3025] such bank: Provided, however, That should any mutual savings bank make manifest to the Corporation its AN ACT election to be subject to the provisions of the preceding paragraph the Corporation may, in the discretion of To amend section 12B of the Federal Reserve Act so as to extend for one year the temporary plan for deposit insurance, and for other the board of directors, permit such bank to become purposes. so subject and the insurance of its deposits to continue on the same basis and to the same extent as that of Be it enacted by the Senate and House of Representa- fund members other than mutual savings banks. tives of the United States of America in Congress as- "The Corporation, in the discretion of the board of sembled, That section 12B of the Federal Reserve Act directors, may open on its books solely for the benefit is amended— of mutual savings banks an additional Temporary Fed- (1) By striking out "July 1, 1934" wherever it eral Deposit Insurance Fund (hereinafter referred to as appears in subsections (e), (1), and (y), and inserting the 'Fund For Mutuals') which, if opened, shall bein lieu thereof "July 1, 1935"; come operative on or after July 1, 1934, but prior to (2) By striking out "June 15, 1934" where it ap- August 1, 1934, and shall continue to July 1, 1935. If pears in the last sentence of the third paragraph of the Fund For Mutuals is opened on the books of the subsection (y) and inserting in lieu thereof "October Corporation, each mutual savings bank which is or 1, 1934"; becomes entitled to the benefits of insurance during the (3) By striking out "June 30, 1934" where it ap- period of its operation shall be a member thereof and pears in the first sentence of the fifth paragraph of shall not be a Fund member. All assessments on each subsection (v), and inserting in lieu thereof "June mutual savings bank, including payments heretofore 30, 1935"; made to the Corporation less an equitable deduction (4) By amending the second sentence of the fifth for liabilities and expenses of the Fund incurred prior paragraph of subsection (y) to comprise two sentences to the opening of the Fund For Mutuals, if opened, shall reading as follows: "The provisions of such subsec- be transferred or paid, as the case may be, to the Fund tion (1) relating to State member banks shall be ex- For Mutuals. All provisions of this section applicable tended for the purposes of this subsection to members to the Fund and not inconsistent with this paragraph of the Fund which are not members of the Federal shall be applicable to the Fund For Mutuals if opened, Reserve System, and the provisions of such subsection except that as to any period the two are in operation (1) relating to the appointment of the Corporation as the Fund shall not be subject to the liabilities of the receiver shall be applicable to all members of the Fund For Mutuals and the Fund For Mutuals shall Fund. The provisions of this subsection shall apply not be subject to the liabilities of the Fund. Each only to deposits of members of the Fund which have mutual savings bank admitted to the Fund shall bear been made available since March 10, 1933, for with- its equitable share of the liabilities of the Fund for the drawal in the usual course of the banking business."; period it is a member thereof, including expenses of (5) By adding to the sixth paragraph of subsection operation and allowing for anticipated recoveries."; (y) the following: "The Corporation shall prescribe (7) By striking out the period at the end of the first by regulations the manner of exercise of the right of sentence of the fifth paragraph of subsection (y) and nonmember banks to withdraw from membership in inserting in lieu thereof a comma and the following: the fund on July 1, 1934, except that no bank shall be "if the member closed on or before June 30, 1934, and permitted to withdraw unless ten days prior thereto not more than $5,000 if closed on or after July 1, it has given written notice to the Corporation of its 1934."; election so to do. Banks which withdraw from the (8) By (a) striking out "July 1, 1936" in the first Fund on July 1, 1934, shall be entitled to a refund sentence of subsection (1) and inserting in lieu thereof of their proportionate share of any estimated balance "July 1, 1937", (b) striking out the words "July 1, in the Fund on the same basis as if the Fund had 1936" in the seventh paragraph of subsection (y) and terminated on July 1, 1934."; inserting in lieu thereof "July 1, 1937", and (c) (6) By adding to the end of the fourth paragraph of adding after the seventh paragraph of subsection (y) subsection (y) the following new paragraphs: the following new paragraph: "On and after July 1, 1934, the amount eligible for "Until July 1, 1937, any State bank may obtain the insurance under this subsection for the purposes of benefits of this section on and after the date the Fund the October 1, 1934 certified statement, any entrance is terminated upon the conditions with regard to examassessment, and, if levied, the additional assessment, ination, certification, and approval governing the shall be the amounts not in excess of $5,000 of the admission of State banks to the Fund and upon purdeposits of eacli depositor. chasing such class A stock or making such a deposit Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

488 FEDERAL RESERVE BULLETIN JULY 1934 as is prescribed in the preceding paragraph for former " (c) The amount of notes, bonds, debentures, and fund members."; other such obligations which the Corporation is au- (9) By adding at the end of the first paragraph of thorized and empowered to issue and to have outsubsection (v) the following new paragraph: standing at any one time under existing law is hereby " Every insured bank shall display at each place of increased by $250,000,000." business maintained by it a sign or signs to the effect SEC. 4. So much of section 31 of the Banking Act of that its deposits are insured by the Federal Deposit 1933 as relates to stock ownership by directors, trustees Insurance Corporation. The Corporation shall pre- or members of similar governing bodies of member scribe by regulation the form of such sign and the banks of the Federal Reserve System, is hereby repealed. manner of its display. Such regulation may impose a Approved, June 16, 1934. maximum penalty of $100 for each day an insured bank continues to violate any lawful provisions of said regulation."; and (10) By amending the first sentence of the second Loans made by national banks secured by real estate paragraph of subsection (y) by inserting within the parentheses and immediately after the words "District There is printed below the text of section of Columbia" the words "and the Territories of Hawaii 505 of the National Housing Act, approved by and Alaska." SEC. 2. The first paragraph of section 9 of the Federal the President June 27, 1934 (Public, No. 479, Reserve Act, as amended (U.S.C., title 12, sec. 321), 73d Cong.), amending section 24 of the Federal is amended by adding after the second sentence thereof Reserve Act, which relates to loans made by a new sentence to read as follows: "For the purposes national banks secured by real estate. of membership of any such bank the terms * capital' and * capital stock' shall include the amount of out- SEC. 505. (a) Section 24 of the Federal Reserve standing capital notes and debentures legally issued Act, as amended, is amended by adding at the end of by the applying bank and purchased by the Recon- the tnird sentence thereof the following: "Provided, struction Finance Corporation." That in the case of loans secured by real estate which SEC. 3. (a) The Reconstruction Finance Corpora- are insured under the provisions of title II of the Nation Act, as amended, is amended by adding before tional Housing Act, such restrictions as to the amount section 6 thereof the following new section: of the loan in relation to the actual value of the real "SEC. 5e. (a) The Corporation is authorized and estate and as to the five-year limit on the terms of empowered to make loans upon or purchase the assets such loans shall not apply." of any bank, savings bank, or trust company, which (b) Section 24 of such Act, as amended, is further has been closed on or after December 31, 1929, and amended by adding at the end thereof the following prior to January 1, 1934, and the affairs of which have new paragraph: not been fully liquidated or wound up, upon such terms " Loans made to finance the construction of resiand conditions as the Corporation may by regulations dential or farm buildings and having maturities of prescribe. If in connection with the reorganization, not to exceed six months, whether or not secured by a stabilization, or liquidation of any such bank, assets mortgage or similar lien on the real estate upon which have been trusteed or are otherwise held for the benefit the residential or farm building is being constructed, of depositors or depositors and others, the authority, shall not be considered as loans secured by real estate subject to regulations, as provided in the preceding within the meaning of this section, but shall be classed sentence shall be extended for the purpose of authorizas ordinary commercial loans: Provided, That no ing the Corporation to purchase or make loans on such national banking association shall invest in, or be assets held for the benefit of such depositors or deposiliable on, any such loans in an aggregate amount in tors and others. This authority shall also extend to excess of 50 per centum of its actually paid-in and unany such institution that has reopened without payimpaired capital. Notes representing such loans shall ment of deposits in full. In making any purchase of be eligible for discount as commercial paper within the or loan on the assets of any closed bank, the Corporaterms of the second paragraph of section 13 of the tion shall appraise such assets in anticipation of an Federal Reserve Act, as amended, if accompanied by a orderly liquidation over a period of years, rather than valid and binding agreement to advance the full amount on the basis of forced selling values in a period of busiof the loan upon the completion of the" building entered ness depression. This authority shall also extend to into by an individual, partnership, association, or assets of the character made eligible by this section corporation acceptable to the discounting bank." as security for loans without regard to whether the Corporation has heretofore made loans thereon. " (b) The Corporation shall purchase at par value such debentures or other obligations of the Federal Regulation governing loans to provide working capital Deposit Insurance Corporation as are authorized to be issued under subsection (o) of section 12B of the Federal There is printed herewith the Federal Reserve Reserve Act, as amended, upon request of the board of directors of the Federal Deposit Insurance Corporation, Board's regulation pertaining to loans, diswhenever in the judgment of said board additional counts, purchases, and commitments by Fedfunds are required for insurance purposes: Provided, eral Reserve banks to provide working capital That the Corporation shall not purchase or hold at any for established industrial or commercial busitime said debentures or other obligations in excess of $250,000,000 par value: Provided further, That the nesses under the provisions of section 13b of proceeds derived from the purchase by the Corporation the Federal Reserve Act as amended by the Act of any such debentures or other such obligations shall of June 19, 1934. After consultation with the be used by the Federal Deposit Insurance Corporation chairmen and governors of the 12 Federal Resolely in carrying out its functions with respect to such insurance. serve banks, this regulation was adopted by the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1934 FEDERAL RESERVE BULLETIN 489 Federal Reserve Board on June 26, 1934, and paring forms suitable to the needs of its district. became effective immediately. Each applicant, therefore, should communicate Recognizing the need of many small and directly with the Federal Reserve bank of its medium-sized industrial and commercial busi- district, which will supply the necessary forms nesses for additional working capital to enable and all necessary information. them to continue or resume normal operations The Industrial Advisory Committees, which and to maintain employment or provide addi- are to be organized in each Federal Reserve tional employment, Congress has granted the district and which will consist of five members Federal Reserve banks very broad powers to actively engaged in some industrial pursuit enable them to provide such working capital, within the district, are being selected, and the either through the medium of other banks, trust names of their members will be announced companies, and other financing institutions or, promptly by the Federal Reserve banks. in exceptional circumstances, directly to such commercial and industrial businesses. It is REGULATION S, SERIES OF 1934 believed that the facilities thus afforded will aid DISCOUNTS, PURCHASES, LOANS, AND COMMITMENTS BY in the recovery of business, the increase of em- FEDERAL RESERVE BANKS TO PROVIDE WORKING CAPIployment, and the general betterment of con- TAL FOR ESTABLISHED INDUSTRIAL OR COMMERCIAL BUSINESSES ditions throughout the country. In accordance with the policy of Congress SECTION I. STATUTORY PROVISIONS and in order to facilitate as much as possible Section 13b of the Federal Reserve Act as amended the performance of the new functions thus by the act of June 19, 1934, reads in part as follows: granted to the Federal Reserve banks, the Fed- "SEC. 13b. (a) In exceptional circumstances, when it appears to the satisfaction of a Federal Reserve bank eral Reserve Board's regulation leaves the broad that an established industrial or commercial business powers granted by Congress to the Federal located in its district is unable to obtain requisite Reserve banks wholly unimpaired and pre- financial assistance on a reasonable basis from the scribes no restrictions beyond those prescribed usual sources, the Federal Reserve bank, pursuant to authority granted by the Federal Reserve Board, may in the law itself. Any attempt to prescribe make loans to, or purchase obligations of, such business, technical definitions of such terms as " working or may make commitments with respect thereto, on a capital", "established commercial or industrial reasonable and sound basis, for the purpose of providing business", and "financing institutions" has it with working capital, but no obligation shall be acquired or commitment made hereunder with a mabeen avoided, lest it have the effect of restrictturity exceeding five years. ing and hampering the operations of the Federal "(b) Each Federal Reserve bank shall also have Reserve banks under this statute. The regu- power to discount for, or purchase from, any bank, lations, therefore, contain practically nothing trust company, mortgage company, credit corporation except an analysis of the law and an outline of for industry, or other financing institution operating in its district, obligations having maturities not exthe necessary procedure. ceeding five years, entered into for the purpose of The law permits Federal Reserve banks to obtaining working capital for any such established make direct loans to established industrial and industrial or commercial business; to make loans or advances direct to any such financing institution on commercial businesses only when authorized the security of such obligations; and to make comby the Federal Reserve Board; but, in order to mitments with regard to such discount or purchase of avoid the necessity of having applications for obligations or with respect to such loans or advances such accommodations passed on in Washington, on the security thereof, including commitments made in advance of the actual undertaking of such oblithe Board has granted blanket authority to all gations. Each such financing institution shall obligate Federal Reserve banks to grant such accommo- itself to the satisfaction of the Federal Reserve bank dations directly on their own responsibility for at least 20 per centum of any loss which may be without reference to Washington. sustained by such bank upon any of the obligations acquired from such financing institution, the existence In accordance with one of the principles of and amount of any such loss to be determined in acthe Federal Reserve Act, which contemplates cordance with regulations of the Federal Reserve that the operations of each Federal Reserve Board: Provided, That in lieu of such obligation against bank will be adapted to the peculiar needs of loss any such financing institution may advance at least 20 per centum of such working capital for any its own district and will be administered by established industrial or commercial business without persons residing in and familiar with the prob- obligating itself to the Federal Reserve bank against lems of such district, the Federal Reserve loss on the amount advanced by the Federal Reserve Board has not prescribed any uniform forms bank: Provided, however, That such advances by the financing institution and the Federal Reserve bank shall to be used in making application to Federal be considered as one advance, and repayment shall be Reserve banks for working capital but has left made pro rata under such regulations as the Federal to each Federal Reserve bank the task of pre- Reserve Board may prescribe. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

490 FEDERAL RESERVE BULLETIN JULY 1934 , " (c) The aggregate amount of loans, advances, and (6) Applications by financing institutions for discommitments of the Federal Reserve banks outstanding counts, purchases, loans, advances, or commitments under this section at any one time, plus the amount of with respect thereto.—Each application * by a financing purchases and discounts under this section held at the institution to a Federal Reserve bank for the discount same time, shall not exceed the combined surplus of the or purchase of an obligation entered into for the pur- Federal Reserve banks as of July 1, 1934, plus all pose of obtaining working capital for an established amounts paid to the Federal Reserve banks by the industrial or commercial business or for a loan or Secretary of the Treasury under subsection (e) of this advance on the security of such an obligation or for a section, and all operations of the Federal Reserve banks commitment with regard to such discount, purchase, under this section shall be subject to such regulations loan, or advance, must be transmitted to the Federal as the Federal Reserve Board may prescribe. Reserve bank of the district in which the principal " (d) For the purpose of aiding the Federal Reserve place of business of the applicant is located and shall banks in carrying out the provisions of this section, be submitted by such Federal Reserve bank to the there is hereby established in each Federal Reserve Industrial Advisory Committee of such district. Such district an industrial advisory committee, to be ap- application must be made in writing on a form furnished pointed by the Federal Reserve bank subject to the for that purpose by the Federal Reserve bank and must approval and regulations of the Federal Reserve Board, contain or be accompanied by such information, agreeand to be composed of not less than three nor more than ments, and documents as the Federal Reserve bank five members as determined by the Federal Reserve may require. Board. Each member of such committee shall be (c) Grant or refusal of application.—In making any actively engaged in some industrial pursuit within the discount for or purchase from any financing institution Federal Reserve district in which the committee is es- of obligations entered into for the purpose of obtaining tablished, and each such member shall serve without working capital for any established industrial or comcompensation but shall be entitled to receive from the mercial business or making any loan or advance on the Federal Reserve bank of such district his necessary security thereof or any commitment with regard to expenses while engaged in the business of the com- such discount, purchase, loan or advance, the Federal mittee, or a per diem allowance in lieu thereof to be Reserve bank shall ascertain to its satisfaction: fixed by the Federal Reserve Board. Each application (1) That such obligations have been or will be for any such loan, advance, purchase, discount, or entered into for the purpose of obtaining working commitment shall be submitted to the appropriate capital for an established industrial or commercial committee and, after an examination by it of the busi- business located in its district; ness with respect to which the application is made, the (2) That the financial condition and credit application shall be transmitted to the Federal Reserve standing of the obligor and indorsers, if any, upon bank, together with the recommendation of the such obligations and of such financing institution: committee." and the value of the security offered, if any, justify the granting of such accommodation; and (3} That the transaction will comply with the- SECTION II. TRANSACTIONS BY FEDERAL RESERVE requirements of the law and of this regulation with BANKS WITH FINANCING INSTITUTIONS regard thereto and, insofar as such reserve bank (a) Legal requirements.—Under the provisions of may be able to ascertain, does not involve a subsection (b) of section 13b of the Federal Reserve violation by any person of the provisions of section Act, a Federal Reserve bank is authorized to discount 22 of the Federal Reserve Act. obligations for, purchase obligations from, and make (d) Existence and amount of losses.—The Federal loans or advances on the security of such obligations Reserve bank shall be deemed to have sustained a loss direct to, any bank, trust company, mortgage company, upon any obligation acquired from a financing institucredit corporation for industry or other financing in- tion in accordance with the provisions of this section of stitution (hereinafter referred to as " financing institu- this regulation whenever the board of directors of such tion") operating in its district and to make commit- Reserve bank, after investigation, shall have determents wTith regard to such discounts, purchases, loans mined that such obligation or any part thereof is a loss or advances, subject to the following requirements: and such reserve bank, after having obtained the ap- (1) Obligations which are the subject of such dis- proval of the Federal Reserve Board, shall have charged counts, purchases, loans, advances, or commitments off of the books of the reserve bank the amount so must have been or must be entered into for the purpose determined to be a loss. The amount of loss in any of obtaining working capital for an established industrial such case shall be deemed to be the amount so charged or commercial business; off, together with unpaid interest thereon. Such (2) Such obligations must have a maturity of not financing institution shall reimburse the Federal Reserve exceeding five years; bank for the portion of such loss for which such financ- (3) Each such financing institution shall— ing institution shall have obligated itself, with interest A. Obligate itself to the satisfaction of the on such portion of such loss until the date of such reim- Federal Reserve bank for at least 20 percent of any bursement. If any recovery be realized on the amount loss which may be sustained by such reserve bank of the loss ascertained in accordance with this subsecupon any such obligation acquired from such fi- tion, such financing institution and the Federal Reserve nancing institution, the existence and amount of bank shall be entitled to share pro rata in the amount so any such loss to be determined in accordance with recovered. subsection (d) of section II of this regulation; or B. In lieu thereof, advance at least 20 percent of 1 Attention is invited to the requirements of subsections (h) and (k) such working capital and in such event the ad- of section 22 of the Federal Reserve Act quoted in the appendix to this regulation, with regard to material statements or overvaluation of vances by both such financing institution and the security in connection with applications of this kind and with regard to Federal Reserve bank shall be considered as one the giving or receiving of fees, commissions, bonuses, or things of value advance and repayment shall be made on a pro for procuring or endeavoring to procure from a Federal Reserve bank any credit accommodation, either directly from such Federal Reserve bank: rata basis. or indirectly through any financing institution. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

491 JULY 1934 FEDERAL RESERVE BULLETIN SECTION III. DIRECT TRANSACTIONS IN EXCEPTIONAL (5) That the financial condition and credit CIRCUMSTANCES BY FEDERAL RESERVE BANKS WITH standing of the obligor and indorsers, if any, upon ESTABLISHED INDUSTRIAL OR COMMERCIAL BUSI- such obligations, and the value of the security NESSES offered, if any, justify the granting of such accommodation on a reasonable and sound basis; and (a) Legal requirements.—A Federal Reserve bank (6) That the transaction will comply with the may exercise its authority to make loans to or purchase requirements of the law and of this regulation with obligations of an established industrial or commercial regard thereto and, insofar as such reserve bank business located in its district or to make commitments may be able to ascertain, does not involve a violawith respect thereto under subsection (a) of section tion by any person of the provisions of section 22 13b of the Federal Reserve Act: (1) in exceptional of the Federal Reserve Act. circumstances; (2) when it appears to the satisfaction of the Federal Reserve bank that such established indus- SECTION IV. INDUSTRIAL ADVISORY COMMITTEES trial or commercial business is unable to obtain requisite financial assistance on a reasonable basis from the usual (a) Membership of committees.—The Industrial sources; (3) pursuant to the authority hereinafter Advisory Committee established in each Federal granted by the Federal Reserve Board; (4) for the pur- Reserve district under the provisions of subsection (d) pose of providing such established industrial or com- of section 13b of the Federal Reserve Act shall consist mercial business with working capital; (5) on a reason- of five members actively engaged in some industrial able and sound basis; and (6) with respect to obligations pursuit within the Federal Reserve district in which which have maturities not exceeding 5 years. the committee is established, and it shall be the duty (b) Authorization by Federal Reserve Board.—The of such committee to consider all applications made to Federal Reserve Board, pursuant to the provisions of the Federal Reserve bank for discounts, purchases, subsection (a) of section 13b of the Federal Reserve loans, advances, and commitments pursuant to the Act, hereby authorizes every Federal Reserve bank, in provisions of section 13b of the Federal Reserve Act exceptional circumstances, until such time as the and to make recommendations to the Federal Reserve Federal Reserve Board may revoke or modify such bank with respect thereto. The membership of such authority, to make loans to and purchase obligations committee shall consist of persons who are familiar of an established industrial or commercial business in with the problems and needs of industry and comits district, and to make commitments with respect merce in such district. thereto, subject to the provisions of the law and this As soon as practicable, the board of directors of each regulation. Federal Reserve bank shall submit for the approval of (c) Applications by established industrial or com- the Federal Reserve Board the names of the persons in mercial businesses for loans, purchases, or commit- the district of such Federal Reserve bank selected by ments with respect thereto.—Each application 2 by such board of directors for service on such committee an established industrial or commercial business to a and, if approved by the Federal Reserve Board, such Federal Reserve bank for a loan to, or the purchase of persons shall serve as members of said committee until the obligations of, such business, or a commitment with March 1, 1935. respect to such a loan or purchase, must be transmitted On or before February 15, 1935, and on or before the to the Federal Reserve bank of the district in which 15th day of February of each year thereafter, the board the principal place of business of the applicant is located of directors of each Federal Reserve bank shall submit and shall be submitted by such Federal Reserve bank to the Federal Reserve Board for its consideration the to the Industrial Advisory Committee of such district. names of the persons selected to serve for the ensuing Such application must be made in writing on a form year as members of the Industrial Advisory Committee furnished for that purpose by the Federal Reserve of the district of such Federal Reserve bank and, if bank and must contain or be accompanied by such approved by the Federal Reserve Board, such persons information, agreements, and documents as the Federal shall serve for terms of 1 year commencing on the Reserve bank may require. 1st day of March of such year. Vacancies that may (d) Grant or refusal of application.—In making any occur in the membership of such committees shall be loan to or purchasing the obligations of any established filled in like manner, and persons appointed to fill such industrial or commercial business or making any com- vacancies shall hold office for the unexpired terms of mitment with respect to such a loan or purchase, the their predecessors. Federal Reserve bank shall ascertain to its satisfaction: (b) Recommendations of committees.—The Indus- (1) That the circumstances are exceptional; trial Advisory Committee, to which an application for (2) That the obligor upon the obligation to be any such discount, purchase, loan, advance, or compurchased or to evidence such loan is an established mitment by the Federal Reserve bank of the district industrial or commercial business located in its shall have been submitted, after an examination by it district; of the business with respect to which the application (3) That the proceeds of such loan or purchase is made and a consideration of the necessity and are to be used to provide working capital for such advisability of granting the application and of such business; other factors as it may deem appropriate, shall trans- (4) That such obligor is unable to obtain requi- mit the application to the Federal Reserve bank site financial assistance on a reasonable basis from together with the recommendation of the committee. the usual sources; SECTION V. AGGREGATE AMOUNT OF ACCOMMODATIONS 2 Attention is invited to the requirements of subsections (h) and (k) of section 22 of the Federal Reserve Act quoted in the appendix to this WHICH MAY BE EXTENDED BY A FEDERAL RESERVE regulation, with regard to material statements or overvaluation of secur- BANK ity in connection with applications of this kind and with regard to the giving or receiving of fees, commissions, bonuses, or things of value for Except with the permission of the Federal Reserve procuring or endeavoring to procure from a Federal Reserve bank any Board, the aggregate amount of loans, advances, and credit accommodation, either directly from such Federal Reserve bank or ndirectly through any financing institution. commitments of each Federal Reserve bank made Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

492 FEDERAL RESERVE BULLETIN July 1934 pursuant to the provisions of section 13b of the Federal of not more than $5,000 or by imprisonment for not Reserve Act and outstanding, plus the amount of pur- more than two years, or both. chases and discounts acquired under that section and " (i) Whoever, being connected in any capacity with held at the same time, shall not exceed the surplus of a Federal Reserve bank (1) embezzles, abstracts, pursuch Federal Reserve bank as of July 1, 1934, plus all loins, or willfully misapplies any moneys, funds, secuamounts paid to such Federal Reserve bank by the rities, or other things of value, whether belonging Secretary of the Treasury under subsection (e) of to it or pledged or otherwise entrusted to it, or (2) section 13b of the Federal Reserve Act. with intent to defraud any Federal Reserve bank, or any other body politic or corporate, or any individual, or to deceive any officer, auditor, or examiner, SECTION VI. RATES OF INTEREST AND DISCOUNT makes any false entry in any book, report, or statement of or to a Federal Reserve bank, or, without All rates of interest and of discount established by being duly authorized, draws any order or issues, any Federal Reserve bank with respect to loans, puts forth, or assigns any note, debenture, bond, or advances, discounts, and purchases made under authorother obligation, or draft, mortgage, judgment, or ity of the provisions of section 13b of the Federal Redecree shall be punished by a fine of not more than serve Act shall be subject to the approval of the Federal $10,000 or by imprisonment for not more than five Reserve Board. years, or both. "(j) The provisions of sections 112, 113, 114, 115, SECTION VII. REPORTS BY FEDERAL RESERVE BANKS 116, and 117 of the Criminal Code of the United States, insofar as applicable, are extended to apply to con- Each Federal Reserve bank shall make a daily report tracts or agreements of any Federal Reserve bank under to the Federal Reserve Board of all transactions entered this Act, which, for the purposes hereof, shall be held to into pursuant to the authority conferred by section 13b include advances, loans, discounts, purchase and repurof the Federal Reserve Act on the Federal Reserve chase agreements; extensions and renewals thereof; Board's form B D 4, prescribed for the reporting of and acceptances, releases, and substitutions of securdiscount transactions. ity therefor. " (k) It shall be unlawful for any person to stipu- SECTION VIII. CHANGES IN REGULATIONS late for or give or receive, or consent or agree to give or receive, any fee, commission, bonus, or thing The Federal Reserve Board, pursuant to the author- of value for procuring or endeavoring to procure from ity conferred upon it by section 13b of the Federal any Federal Reserve bank any advance, loan, or exten- Reserve Act, will alter, modify, or amend the provisions sion of credit or discount or purchase of any obligation of this regulation from time to time in its discretion. or commitment with respect thereto, either directly from such Federal Reserve bank or indirectly through any financing institution unless such fee, commission, APPENDIX bonus, or thing of value and all material facts with There is printed below the text of subsections (h), respect to the arrangement or understanding therefor (i), (j), and (k) of section 22 of the Federal Reserve shall be disclosed in writing in the application or Act, as amended by the act of June 19, 1934, which request for such advance, loan, extension of credit, relate in part to the subject matter of this regulation. discount, purchase, or commitment. Any violation of " (h) Whoever makes any material statement, know- the provisions of this paragraph shall be punishable by ing it to be false, or whoever willfully overvalues any imprisonment for not more than one year or by a fine of security, for the purpose of influencing in any way not exceeding $5,000, or both. If a director, officer, the action of a Federal Reserve bank upon any applica- employee, or agent of any Federal Reserve bank shall tion, commitment, advance, discount, purchase, or loan, knowingly violate this paragraph, he shall be held liable or any extension thereof by renewal, deferment of ac- in his personal and individual capacity for any loss tion, or otherwise, or the acceptance, release, or sub- or damage sustained by such Federal Reserve bank in stitution of security therefor, shall be punished by a fine consequence of such violation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

July 1934 FEDERAL RESERVE BULLETIN 493 FEDERAL RESERVE STATISTICS BY DISTRICTS, ETC. DISCOUNTS BY MONTHS DISCOUNTS BY WEEKS [Averages of daily figures. In millions of dollars] [In thousands of dollars] 1934 1933 Wednesday series (1934) Federal Reserve bank Federal Reserve bank June May June June 6 June 13 June 20 June 27 Boston 0.9 1.0 11.7 Boston 734 828 1,271 New York 13.9 16.4 61.9 New York 13,423 13,016 14, 441 14,422 7.8 11.6 39.6 Philadelphia. 8,810 8,609 6.866 6,641 Philadelphia- 1.7 39.1 Cleveland 1,386 1,373 1,395 642 Cleveland 1.2 15.8 Richmond. .. 959 892 879 871 Richmond .7 11.0 Atlanta 586 519 531 577 Atlanta 1.1 15.1 Chicago.-. 1,116 280 691 730 Chicago— .2 2.9 St. Louis 98 115 178 141 St. Louis .5 6.1 Minneapolis... 639 677 546 485 Minneapolis... Kansas City... .2 10.9 Kansas City... 213 214 479 272 Dallas .3 4.6 Dallas __. 456 580 481 477 San Franciseo. 31.3 San Francisco.. 577 773 563 Total.. 28.1 35.9 249.9 Total 28,997 I 27,876 27,956 27,015 Back figures.—SeeA nnual Report for 1932 (table 9). Back figures.—See Annual Report for 1932 (table 13). TOTAL RESERVES, DEPOSITS, NOTE CIRCULATION, AND RATIO OF TOTAL RESERVES TO LIABILITIES [Averages of daily figures. Amounts in thousands of dollars] Ratio of total reserves to Federal Reserve notes in deposit and Federal Total reserves Total deposits circulation l Reserve note liabilities combined Federal Reserve bank 1934 1933 1934 1933 1934 1933 1934 1933 June May June June May June June May June June May June Boston. 410,707 403,315 318,924 307,163 299, 614 173,824 244,027 244,309 222, 368 74.5 74.1 80.5 New York 1,665,903 1, 591,0831, 031, 5861, 703, 0241,641,840 1,031, 435 645, 704 637, 482 664, 385 70.9 69.8 60.8 Philadelphia. 321,781 309, 533 235, 236 223,936 215, 349 133, 294 249,090 247,702 241,869 68.0 66.8 62.7 Cleveland 378,105 365, 738 288,844 257, 552 244,453 160,054 305, 781 305,357 312,667 67.1 66.5 61.1 Richmond 191, 201 215, 595 174,105 149,021 172, 529 90,984 142,161 141,756 143,313 65.7 68.6 74.3 Atlanta 138, 338 134,767 137, 848 86,315 84, 769 66,541 135, 405 132,151 124,032 62.4 62.1 72.3 Chicago 1,047,988 927,044 679,119 620, 832 354, 365 771,689 776, 935 807,224 72.2 70.8 79.8 St. Louis 177,013 191,476 162,650 130,930 143,816 82,147 132,772 134,403 142, 577 67.1 68.8 72.4 Minneapolis... 112,177 109,736 86,858 78,919 75, 503 51, 398 95,089 95, 772 90, 447 64.5 64.1 61.2 Kansas City... 161,812 156,991 139,118 143,756 139,848 91,016 107,509 106,800 112,376 64.4 63.6 68.4 Dallas 98, 410 97,131 49,813 119,113 117,612 54, 661 40,154 39,081 35,846 61.8 62.0 55.0 San Francisco. 304, 254 299, 264 261, 650 252, 336 250, 673 166,869 202, 636 199,612 230,542 66.9 66.5 65.8 Total.. 5,007,689 4,864,715 3,813,676 4,131,184 4,006,838 2,456,588 3,072,017 3,061,360 3,127,646 .9.5 68.3 1 Includes "Federal Reserve notes of other Reserve banks" as follows: Latest month, $18,032,000; month ago, $17,248,000; year ago, $18,655,000. Back figures.—See Annual Report for 1932 (table 8). EACH FEDERAL RESERVE BANK—ASSETS AND LIABILITIES; ALSO FEDERAL RESERVE NOTE AND FEDERAL RESERVE BANK NOTE STATEMENT, JUNE 30, 1934 [In thousands of dollars] Total Boston Y N o e r w k d P e h lp il h a i - a C la le n v d e- m Ri o c n h d - Atlanta Chicago L S o t u . is M ap in o n li e s - K C an it s y as Dallas F c S r is a a c n n o - ASSETS Gold certificates on hand and due from U.S. Treasury. __ 4,782,053 394,962 1,669,495 287,465 349, 276 163, 235 123,620 991,646 152, 530 98,072 160,983 88, 765 302,004 Redemption fund—F.R. notes 25,724 2,111 1,707 2,606 3,081 2,318 3,479 2,183 968 1,168 1,006 554 4,543 Other cash 214,011 16,636 55, 309 34, 588 11,888 7,027 11, 709 28, 328 9,850 12,193 10,041 5,495 10,947 Total reserves 5,021, 788 413, 709 1, 726, 511 324, 659 364, 245 172, 580 138,808 1,022,157 163,348 111,433 172,030 94, 814 317,494 Redemption fund—F.R. bank notes 4,335 250 2,038 858 715 474 Bills discounted: Secured by U.S. Government obligations 4,767 401 2,777 988 183 98 9 1 159 25 15 31 80 Other bills discounted... 19,800 336 11,006 5,278 549 558 472 283 12 374 177 396 359 Total bills discounted. 24, 567 737 13, 783 6,266 732 656 481 284 171 399 192 427 439 Bills bought in open market. 5,269 371 2,005 536 487 193 178 649 121 85 142 142 360 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

494 FEDERAL RESERVE BULLETIN July 1934 EACH FEDERAL RESERVE BANK—ASSETS AND LIABILITIES; ALSO FEDERAL RESERVE NOTE AND FEDERAL RESERVE BANK NOTE STATEMENT, JUNE 30, 1934—Continued Total Boston Y N o e r w k d P e h lp il h a i - a C l l a e n v d e- m Ri o c n h d - Atlanta Chicago L S ou t. is M ap i o n l n i e s -K C an it s y as Dallas F c S r is a a c n n o - ASSETS—continued U.S. Government securities: Bonds 467,918 27, 225 166,173 30,022 35, 998 17, 501 15,195 76, 501 16,166 17, 371 17, 272 20,387 28,107 Treasury notes 1,221,871 80,648 387, 463 85,149 109,439 53, 204 45,830 218,557 47, 623 29, 836 47,089 31, 582 85,451 Certificates and bills 742,105 49,806 226, 619 51,949 67, 587 32,858 28, 305 135, 785 29,411 18,423 29,083 19, 506 52, 773 Total U.S. Government securities 2, 431, 894 57, 679 780, 255 67,120 213, 024 103,563 89, 330 430,843 93, 200 65,630 93, 444 71, 475 166,331 Other securities 519 35 484 Total bills and securities 2,462, 249 58, 787 796,078 74,406 214, 243 104, 412 89,989 431, 776 93, 492 66,114 93, 778 72,044 167,130 Due from foreign banks 3,129 236 1,195 341 300 119 109 414 10 7 88 88 222 F.R. notes of other banks 19,202 417 5,958 915 1,183 1,455 940 3,642 1,372 859 935 346 1,180 Uncollected items . .. 425,176 45, 752 111, 595 29, 519 37,159 35, 721 13, 522 62,919 17, 308 12, 281 26, 569 14,671 18,160 Bank premises 52, 637 3,224 11,449 4,170 6,788 3,128 2,372 7,387 3,124 1,664 3,485 1,757 4,089 Fed. Deposit Ins. Corp. stock _ 139, 299 10, 230 42, 529 14,621 14,147 5,808 5,272 19,749 5,093 3,510 4,131 4,359 9,850 All other assets 46,825 802 30, 085 5,607 1, 409 1,843 2,433 1,177 269 1,107 523 969 601 Total assets ,174,640 633,407 2,727, 438 555,096 640.189 325,066 253. 445 1, 549, 221 284, 016 96,975 301, 539 189, 522 518.726 i LIABILITIES F.R. notes in actual circulation.. 3,101, 314 245, 055 664, 098 251,229 1307.927 141, 547 135, 627 771,306 32,668 95, 235 108, 659 40, 645 207, 318 F.R. bank note circulation—net 46, 682 666 35, 650 4,733 4,347 1,286 Deposits: Member bank—reserve account.-. _. 3,840,086 306, 694 1,587,195 213, 836 233,955 24,134 73, 964 639, 729 03,805 70, 574 141, 343 114,064 230, 793 U.S. Treasurer—general account . 64,183 673 22, 752 5,334 5,480 3,381 3,339 5,119 1,325 838 4,822 1,151 9,669 Foreign bank_ 4,893 270 2,445 389 359 142 131 472 123 86 105 105 266 Other deposits 228, 527 2,573 138, 423 4,932 7,492 4,225 9,551 10, 605 13, 607 7,039 8,156 1,474 20, 450 Total deposits... 4,137,689 310, 210 1, 750, 815 224,491 247, 286 131,882 86,985 655,925 18, 860 78, 537 154, 426 116, 794 261, 478 Deferred availability items. _ 418,486 45, 240 108,306 28,129 36, 955 34, 515 13,126 63,310 17, 462 11,921 25,716 15, 867 17,939 Capital paid in 147,120 10, 769 60,269 15,400 12, 705 4,960 4,404 12, 613 4,029 3,049 4,148 3,992 10,782 Surplus 138,383 9,610 45, 217 13,352 14, 090 5,171 5,145 20, 681 4,756 3, 420 3,613 3,683 9,645 Reserves (Federal Deposit Ins. Corp. stock, self insurance, etc.) 161, 834 11, 283 47, 266 17,121 16, 447 6,963 7,853 22, 718 5, 946 4,535 4,748 5,489 11, 465 All other liabilities 23,132 574 15, 817 641 432 28 305 2,668 295 278 229 1,766 99 Total liabilities 8,174, 640 633,407 2,727,438 555, 096 640,189 325,066 253,445 1,549,221 284,016 196, 975 301,539 189, 522 518, 726 Ratio of total reserves to deposit and F.R. note liabilities combined (percent) 69.4 74.5 71.5 64.2 65.6 63.1 62.4 71.6 64.9 64.1 65.4 • 60.2 67.7 FEDERAL RESERVE NOTE STATEMENT Federal Reserve notes: Issued to F.R. bank by F.R. agent 3,350,986 269, 533 745,101 266,089 321, 400 148,474 154,993 802,363 136,845 99,842 114,577 45, 938 245,831 Held by Federal Reserve bank 249, 672 24, 478 81,003 14, 860 13,473 6,927 19, 366 31, 057 4,177 4,607 5,918 5,293 38, 513 In actual circulation.3,101,314 245, 055 664,098 251, 229 307, 927 141, 547 135, 627 771, 306 132,668 95, 235 108,659 40, 645 207,318 Collateral held by agent as security for notes issued to bank: Gold certificates on hand and due from U.S. Treasury 3,041, 656 271,117 743,706 230, 000 264, 931 114,340 96,385 784, 513 112,936 78,000 97, 290 46,675 201, 763 Eligible paper . 13, 407 647 8,016 2,079 732 428 340 115 167 105 91 427 260 U.S. Government securities 322,000 35, 000 60, 000 35,000 60,000 20, 000 25,000 22, 000 20, 000 45,000 Total collateral 3, 377, 063 271, 764 751, 722 267, 079 325, 663 149, 768 156, 725 804, 628 138,103 100,105 117,381 47,102 247,023 F.R. BANK NOTE STATEMENT F.R. bank notes: Issued to F.R. bank (outstanding) 61,058 1,511 36, 682 16,035 4,705 2,125 Held by F.R. bank 14, 376 845 1,032 11, 302 358 839 In circulation—net 46, 682 666 35,650 4,733 4,347 1 286 Collateral pledged against outstanding notes: Discounted and purchased bills U.S. Government securities 66,474 5,000 36,974 16,500 5,000 3 000 Total collateral | 66,474 1 5,000 36,974 16,500 5,000 3,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

July 1934 FEDERAL RESERVE BULLETIN 495 FEDERAL RESERVE BANK CREDIT RESERVE BANK CREDIT AND RELATED ITEMS (AVERAGES OF DAILY FIGURES) [In millions of dollars] Reserve bank credit outstanding Treasury Month or week co B d u i i n l s l t - s ed bo B u il g ls ht G U S m o n t v a e i e t t n e e r t n s d - r O e b s a t e h n r e k v r e Total ta M s ry t o o n g c e o k - ld c T a u t r n i b r e o d r a a n e n s a n n k u l c a - r - y y c M u in l o a t c n i i e o r- y n 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 c d R F a e w e e s p h d s i o e e t a s h r r v n i a t e d l s m de N e p m o o n s b - i e ts r R F c O o e e a d s u t c h e e n - r e r t v r a s e l securities credit banks 1933—May 1,846 2,286 4,313 2,301 5,876 2,125 371 173 355 June 250 12 1,933 2,208 4,317 2,295 5,742 2,211 353 164 350 July 170 16 2,016 2,211 4,319 2,283 5,675 2,268 347 179 346 August 159 8 2,064 2,239 4,323 2,280 5,616 2,375 316 186 348 September,. 138 7 2,202 2,358 4,327 2,280 5,632 2,489 328 169 347 October 119 7 2,355 2,492 4,324 2,277 5,656 333 163 352 November- 114 15 2,437 2,574 4,323 2,275 5,681 2,629 349 158 355 December.. 117 101 2,432 2,669 4,323 2,293 5,811 2,616 357 143 358 1934—January... 101 113 2,432 2,656 4,323 2,302 5,669 2,764 397 146 305 February.. 70 87 2,432 2,597 7,137 2,303 5,339 2,822 3,427 127 322 March 55 40 2,437 2,535 7,602 2,333 5,368 3,361 3,298 144 299 April 43 16 2,439 2,507 7,736 2,377 5,366 3,594 3,222 170 268 May. 36 2,431 2,479 7,759 2,378 5,355 3,695 3, 083 249 234 June 28 2,424 2,464 7,821 2,363 5,341 3,790 3,054 226 237 Week ending Saturday- 1934—Mar. 3 2,433 2,565 7,417 2,302 5,370 3,047 3,444 131 292 Mar. 10 2,437 2,549 7,546 2,312 5,386 3,277 3,315 134 295 Mar. 17 2,432 2,530 7,600 2,331 5,364 3,419 3,237 141 300 Mar. 24 2,438 2,518 7,642 2,343 5,351 3,419 3,285 147 301 Mar. 31_ 2,444 2,534 7,677 2,358 5,358 3,433 3,319 159 300 Apr. 7__. 2,446 2,525 7,706 2,369 5,387 3,473 3,299 145 296 Apr. 14.. 2,439 2,504 7,731 2,378 5,370 3,557 3,239 147 300 Apr. 21.. 2,436 2,506 7,746 2,380 5,364 3,634 3,219 169 246 Apr. 28.. 2,435 2,498 7,755 2,380 5,346 3,698 3,158 193 238 May 5... 2,432 2,487 7,756 2,381 5,372 3,591 3,152 272 237 May 12.. 2,431 2,483 7,775 2,381 5,369 3,655 3,099 259 234 May 19.. 2,430 2,479 7,753 2,380 5,357 3,713 3,059 249 234 May 26.. 2,430 2,474 7,764 2,370 ' 5, 335 3,756 3,054 237 ••232 June2__. 2,430 2,470 7,777 2,370 5,350 3,745 3,064 226 232 June 9-.. 2,416 2,459 7,790 2,364 5,360 3,780 3,011 227 235 June 16.. 2,416 2,459 7,819 2,361 5,337 3,825 3,008 230 239 June 23.. 2,431 2,470 7,836 2,361 5,328 3,754 3,124 223 238 June 30.. 2,430 2,468 7, 848 2,365 5,330 3,825 3,064 226 236 r Revised. RESERVE BANK CREDIT AND RELATED ITEMS (END OF MONTH SERIES) [In millions of dollars] Reserve bank credit outstanding Treasury United Moneta- Tr a e n a d sury Money Member c d a e s p h o a s n it d s Non- F O ed th e e r r al End of month c B o d u i i l s n l - s t- bo B u il g l h s t G S m o t v a e e t n e r t s n- r O e b s a t e h n r e k v r e Total ry s to g c o k ld n cu a b t r i a r o e n n n k a c l y - cir ti c o u n la- b r a e l s a e n r c v e e s R Fe w e d s i e e t r h r v a e l d m e e p m os b i e ts r R c e o a s u c e - n r t v s e ed securi- credit banks ties 1933—May 302 20 1,890 7 2,218 4,315 2,298 5,812 2,167 345 155 353 June 164 48 1,998 10 2,220 4,318 2,285 5,721 2,292 298 166 347 July 167 9 2,028 6 2,209 4,320 2,281 5,630 2,294 356 184 346 August 153 7 2,129 8 2,297 4,329 2,281 5,613 2,409 341 197 347 September. 128 7 2,277 9 2,421 4,324 2,278 5,650 2,538 331 155 348 October _._ 116 7 2,421 5 2,548 4,323 2,276 5,635 2,685 299 173 356 November. 119 24 2,432 7 2,581 4,323 2,277 5,743 2,573 369 142 354 December. 98 133 2,437 20 2,688 4,323 2,303 5,804 2,729 288 132 1934—January... 83 111 2,434 2 2,630 4,033 2,302 5,289 2,652 597 141 287 February- 64 62 2,432 8 2,567 7,438 2,302 5,355 3,093 3,440 127 292 March 54 29 2,447 15 2,545 7,695 2,362 5,396 3,457 3,293 157 200 April 39 9 2,431 6 2,485 7,757 2,378 5,368 3,599 3,148 268 236 May 31 5 2,430 -4 2,463 7,779 2,368 5,357 3,746 3,053 222 232 June 25 5 2,432 10 2,472 7,856 2,367 5,374 3,840 3,015 233 233 See footnotes to table for Wednesday series on p. 419. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

496 FEDERAL RESERVE BULLETIN July 1934 LICENSED MEMBER BANKS IN EACH DISTRICT RESERVES HELD, EXCESS RESERVES, AND BORROWINGS AT FEDERAL RESERVE BANKS [In millions of dollars. Averages of daily figures] Reserves held Borrowings at Federal Reserve banks Federal Reserve district Total Excess May April March May April March May April March Boston 291.5 257.6 221.4 170.7 139.2 107.2 1 0 1.5 1 9 New York _ 1,483.3 1,451.3 1,367. 2 536.0 508.2 467.0 15.8 17.4 22.9 Philadelphia 195.8 190.8 193.7 79.6 75.9 80.7 4.3 5.6 8.4 Cleveland 229.4 225.7 230.3 98.9 99.0 107.8 1.4 2.1 2.8 Richmond 159.3 147.9 97.5 96.3 88.0 38.9 .8 1.2 1 4 Atlanta 72.9 75.9 75.8 25.4 28.2 29.5 .6 .6 .5 Chicago - - - - - . .. 596.6 577.3 537.6 319.8 315.2 285.1 .3 .9 St. Louis . - 124.0 119.0 103.5 65.8 60.2 47.1 .2 .3 .4 Minneapolis 65.6 68.1 68.3 26.4 29.0 30.0 .5 .6 .9 Kansas Citv 134.1 133.6 134.4 62,4 63.5 64.9 .2 .3 .3 .Dallas - . . .- 113.6 114.6 119.6 64.0 64.4 68.4 .3 .2 .1 San Francisco _ 228. 8 220. 3 195.5 77.9 70.3 48.4 .4 .3 .8 Total 3,694.8 3, 582. 2 3,344. 7 1, 623. 5 1, 541. 0 1, 375.1 25.9 30.6 41.2 NET DEMAND AND TIME DEPOSITS OF LICENSED MEMBER BANKS IN LARGER AND SMALLER CENTERS [In millions of dollars. Averages of daily figures] Member banks in larger centers (places over 15,000) Member banks in smaller centers (places under 15,000) Federal Reserve district Net demand Time Net demand Time May April March May April March May April March May April March Boston 1,057 1,034 990 618 623 613 83 78 77 119 115 117 New York 6,989 6.955 6,628 1,689 1,698 1,674 196 191 186 428 426 423 Philadelphia. 829 819 806 630 624 609 140 139 138 367 363 358 Cleveland 943 911 873 887 874 862 131 130 127 208 203 199 Richmond 468 437 424 313 308 307 98 95 94 150 148 146 Atlanta 361 363 346 265 265 262 80 81 83 63 62 63 Chicago 2,045 1,935 1,851 853 834 826 154 146 141 149 146 143 St. Louis.. 430 437 414 247 251 240 105 103 102 85 84 83 Minneapolis. . . .- 229 230 222 168 168 171 112 110 108 170 170 171 Kansas City— 499 484 478 209 206 202 204 200 201 109 108 107 Dallas - - 356 360 365 159 158 158 160 164 170 34 35 35 San Francisco 962 966 943 1,640 1,601 1,584 89 88 85 83 83 82 Total .. 15,168 14,931 14,340 7,678 7,609 7,510 1,552 1,526 1,511 1,965 1,943 1,927 NONMEMBER BANKS OTHER THAN MUTUAL SAVINGS BANKS, JUNE 27, 1934 [Preliminary figures, subject to change, based on information received by Federal Reserve banks] Deposits on Dec. 30, 1933, or nearest Number of banks available prior call date (in thousands of dollars) Federal Reserve district Total Licensed Not Total Licensed Not licensed Boston 180 173 437, 743 416, 014 21,729 New York.... 314 305 968,024 949,805 18, 219 Philadelphia. 260 250 10 404,658 390, 252 14,406 Cleveland 652 617 35 529, 724 486,511 43, 213 Richmond 648 622 26 399,492 392, 898 6,594 Atlanta 726 715 11 209,650 206,592 3,058 Chicago 1,950 1,730 220 904, 028 813,101 90,927 St. LoiIU 1*S- 1,330 1,247 83 338, 705 324,929 13,776 Minneapqlis..- 920 887 33 202, 748 195,987 6,761 Kansas City.__ 1,324 1,275 49 261, 331 254, 549 6,782 Dallas 486 479 7 123,434 122,110 1,324 San Francisco. 349 330 19 436,533 429,088 7,445 Total. __ 9,139 8,630 509 5, 216, 070 4,981,836 234, 234 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

July 1934 FEDERAL RESERVE BULLETIN 497 MEMBER BANKS LICENSED AND NOT LICENSED AS OF JUNE 27, 1934 I Deposits on Mar. 5, 1934, of banks Number of banks licensed and not licensed on June 27, 1934 (in thousands of dollars) Federal Reserve district Not Not Total Licensed licensed Total Licensed licensed All member banks: Boston _._ 374 372 2,080, 009 2,079, 219 790 New York 795 788 10,496, 636 10, 485, 505 11,131 Philadelphia..._ 660 644 2,181,982 2,148, 484 33, 498 Cleveland 631 613 2, 340, 363 2,312, 025 28, 338 Richmond 401 394 1,140, 642 1,135,823 4,819 Atlanta 329 324 962,405 954, 757 7,648 Chicago 676 660 3,428, 315 3,418,826 9,489 St. Louis 396 383 1, 018, 769 1,011,758 7,011 Minneapolis 540 531 788, 590 784,021 4,569 Kansas City 746 735 1, 215, 876 1,212,501 3, 375 Dallas 557 554 940,189 939, 581 608 San Francisco,. 381 2, 992, 304 2, 989,199 3,105 Total.. 6,493 6,379 114 29, 586, 080 29, 471, 699 114, 381 National banks: Boston 328 1, 628, 640 1, 627, 850 790 New York 632 625 4, 266, 477 4, 255, 346 11,131 Philadelphia- 596 583 1, 499, 742 1,471,452 28, 290 Cleveland 532 518 1, 391, 394 1, 366, 640 24,754 Richmond 340 334 834, 361 829, 841 4, 520 Atlanta 273 268 870, 518 862,870 7,648 Chicago 517 508 2, 679, 258 2, 674,806 4,452 St. Louis 323 313 693,065 687, 204 5,861 Minneapolis..- 469 460 740, 734 736,165 4,569 Kansas City..- 701 690 1, 066, 629 1, 063, 254 3,375 Dallas 497 494 891, 039 890, 431 608 San Francisco. 310 303 2, 360, 388 2, 357, 283 3,105 Total.. 5, 518 5,422 18, 922, 245 18, 823,142 99,103 State bank members: Boston 46 46 451, 369 451,369 New York 163 163 6, 230,159 6, 230,159 Philadelphia 64 61 682, 240 677, 032 5,208 Cleveland 99 95 948, 969 945, 385 3, 584 Richmond 61 60 306, 281 305, 982 299 Atlanta 56 56 91,887 91, 887 Chicago 159 152 749, 057 744,020 5,037 St. Louis 73 70 325, 704 324, 554 1,150 Minneapolis 71 71 47,856 47, 856 Kansas City 45 45 149, 247 149, 247 Dallas 60 60 49,150 49,150 San Francisco 631, 916 631, 916 Total. 975 95'7 10,663,835 (I 10,648,557 15, 278 1 Includes 5S banks whose Federal Reserve bank stock had been canceled and membership terminated but which, on June 27, 1934, were still rtduded in the Comptroller of the Currency's records of unlicensed banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

498 FEDERAL RESERVE BULLETIN July 1934 REPORTING MEMBER BANKS IN LEADING CITIES PRINCIPAL ASSETS AND LIABILITIES BY DISTRICTS AND FOR NEW YORK AND CHICAGO [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 i l l - a a- C la le n v d e- m Ri o c n h d - la A n t t - a c C a h g i o - L S ou t. is a M p n o e in l - i - s K C s a a it n s y - Dallas F c S i r s a a c n n o - Y N o e r w k c C a h g i o - Total loans and investments: June 6 17,397 1,145 8,055 1,019 1,176 338 327 1,785 501 345 541 383 1,782 7,141 1,453 June 13 17,370 1,149 8,052 1,022 1,181 338 329 1,742 502 347 538 384 1,786 7,144 1,416 June 20-_ 17,663 1,145 8,121 1,043 1,189 347 337 1,824 513 350 551 416 1,827 7,211 1,452 June 27 17,737 1,141 8,176 1,049 1,189 346 344 1,823 522 350 545 412 1,840 7,265 1,453 T«oans: June 6 8,097 674 3,787 497 421 168 179 752 203 160 204 183 869 3,277 596 June 13 8,089 676 3,788 498 421 169 178 742 201 160 202 182 872 3,280 587 June 20 8,055 670 3,759 499 419 170 176 740 201 158 203 184 876 3,262 585 June 27 8,014 . 669 3,737 498 418 167 178 720 201 158 202 184 882 3,236 566 On securities: June 6 3,557 263 1,948 231 201 59 62 335 72 39 62 62 223 1,727 ooo June 13 3,556 265 1,948 231 201 60 62 335 71 39 61 60 223 1,728 282 Juno 20 3,571 263 1,952 234 201 60 62 343 75 39 61 60 221 1,741 289 June 27. _ , 3,529 260 1,925 233 199 59 61 338 71 39 61 60 223 1,711 285 All other: June 6_ 4, 540 411 1,839 266 220 109 117 417 131 121 142 121 646 1,550 314 June 13 4,533 411 1,840 267 220 109 116 407 130 121 141 122 649 1,552 305 June 20 4,484 407 1,807 265 218 110 114 397 126 119 142 124 655 1,521 296 June 27 4,485 409 1,812 265 219 108 117 382 130 119 141 124 659 1,525 281 Investments: June 6 __ 9,300 471 4,268 522 755 170 148 1,033 298 185 337 200 913 3,864 857 June 13 9,281 473 4,264 524 760 169 151 1,000 301 187 336 202 914 3,864 829 June 20 9,608 475 4,362 544 770 177 161 1,084 312 192 348 232 951 3,949 867 June 27 9,723 472 4,439 551 771 179 166 1,103 321 192 343 228 958 4,029 887 U.S. Government securities: June 6 6,276 300 2,968 273 561 119 96 689 195 132 223 149 571 2,791 562 June 13 6,243 301 2,972 271 562 118 99 651 201 133 222 147 566 2,802 529 June 20 6,582 311 3,061 292 576 126 107 740 212 139 237 181 600 2,873 567 June 27 -. 6,665 309 3,111 295 577 127 112 756 222 139 232 179 606 2,926 584 All other: June 6 3,024 171 1,300 249 194 51 52 344 103 53 114 51 342 1,073 295 June 13 3,038 172 1,292 253 198 51 52 349 100 54 114 55 348 1,062 300 June 20_ 3,026 164 1,301 252 194 51 54 344 100 53 111 51 351 1,076 300 June 27_-_ . 3,058 163 1,328 256 194 52 54 347 99 53 111 49 352 1,103 303 Reserve with Federal Reserve bank: June 6 2,808 232 1,359 140 122 50 28 476 68 36 83 73 141 1,304 413 June 13 . 2,881 239 1,403 133 120 47 26 503 71 37 82 74 146 1,354 427 June 20 _ 2,824 251 1,386 136 122 45 28 463 70 38 73 73 139 1,327 418 June 27._ 2,901 262 1,438 136 126 44 25 486 74 38 71 74 127 1,376 441 Cash in vault: June 6 243 48 51 13 18 11 6 50 8 4 11 9 14 39 41 June 13 248 49 51 13 19 11 6 52 8 4 11 9 15 40 42 June 20 ._ 236 48 48 12 18 11 6 49 8 4 10 8 14 37 41 June27_ 247 48 53 12 19 12 6 50 8 4 11 9 15 41 41 Net demand deposits: June 6 __ 12,499 848 6,576 676 622 216 168 1,559 330 213 408 273 610 6,150 1,339 June 13 12, 661 865 6,637 674 631 214 171 1,583 334 218 425 281 628 6,225 1,351 June 20 12,375 841 6,458 670 623 210 171 1,539 330 217 414 275 627 6,049 1,312 June 27-__ 12,504 847 6,569 675 630 214 166 1,548 341 217 407 271 619 6,161 1,319 Time deposits: June 6 4,439 337 1,098 304 455 135 131 475 164 123 165 121 931 679 348 June 13 4,450 339 1,101 306 459 135 131 475 163 121 168 122 930 682 349 June 20 . 4,492 340 1,117 308 461 135 131 485 164 122 168 122 939 696 359 June 27_ 4,501 342 1,115 310 457 135 131 493 164 122 168 122 942 692 367 Government deposits: June 6 955 87 568 49 39 7 19 38 23 5 18 39 63 539 26 June 13 906 82 538 46 43 6 17 34 22 5 17 38 58 511 23 June 20 .. 1,354 114 773 73 55 9 33 69 35 9 26 67 91 733 47 June 27 1,357 114 773 73 56 9 33 69 36 9 26 68 91 733 47 Due from banks: June 6 1,580 126 146 155 90 88 81 252 91 76 186 128 161 87 178 June 13 1,621 122 141 160 90 88 77 269 94 80 202 131 167 85 190 June 20 . 1,574 124 143 160 90 84 76 253 90 70 199 127 158 87 185 June 27 _ 1,569 119 142 160 93 76 76 244 83 72 207 132 165 82 173 Due to banks: June 6_ 3,733 193 1,707 225 178 91 79 490 146 96 233 115 180 1,642 403 June 13 3,770 200 1,730 225 177 90 78 497 143 97 233 117 183 1,663 409 June 20 3,623 188 1,644 229 171 89 74 472 141 91 234 117 173 1,582 388 June 27 _ 3,628 184 1,645 226 172 85 73 473 142 93 240 118 177 1,581 386 Borrowings from Federal ^Reserve banks: June 6 5 4 1 June 13 5 4 1 June 20 6 5 1 June 27 5 5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

July 1934 FEDERAL RESERVE BULLETIN 499 OTHER BANKING AND FINANCIAL STATISTICS SHIPMENTS AND RECEIPTS OF AMERICAN UNITED STATES POSTAL SAVINGS CURRENCY TO AND FROM EUROPE [Balance to credit of depositors. In millions of dollars] BY SELECTED BANKS IN NEW YORK CITY [Paper currency only. In thousands of dollars] End of month 1929 1930 1931 1932 1933 1933 1934 January.... 153.5 165.1 278.4 665.6 942.5 1,200.8 February.. 154.8 167.9 292.1 691.8 1,006.2 1,200.0 Net Net March 155.0 169.5 302.7 705.3 1,112.7 1,200.0 Month m Sh e i n p t - s ce R ip e- ts m sh e i n p t - s m Sh en ip t - s ce R i e p - ts m sh e i n p t - s A M p a r y il 1 1 5 5 3 4 . . 8 3 1 1 7 7 1 0 . . 2 2 3 3 2 1 5 3. . 8 0 7 7 4 2 2 2 . . 6 1 1 1 , , 1 1 7 5 8 8 . . 8 4 1 1 , , 1 1 9 9 7 7 . . 3 9 to from (-)or to from (-)or June 153.6 175.3 347.4 784.8 1,185.1 Europe Europe receipts Europe Europe receipts July 157.8 180.7 372.5 828.5 1,176. 7 (+) (+) August.— 160.1 186.5 422.7 848.5 1,177.7 September. 160.3 189.8 469.9 857.4 1,180. 7 January 3 5,304 +5,301 0 5,256 +5,256 October. _. 161.6 192.5 538.1 870.8 1,188.9 February. 105 5,589 +5,484 1 3,740 +3,739 November. 163.7 200.7 565.5 885.2 1,198. 7 March 101 13,786 +13,685 0 2,200 +2,200 December. 164.3 245.4 605.1 900.8 1, 208.8 April „ 25 8,049 +8,024 1 2,900 +2,899 May 1 12, 523 +12,522 10 3,780 +3,770 » Preliminary. June 0 6,866 +6,866 July 4 11, 755 +11, 751 August 5 6,153 +6,148 MATURITY DISTRIBUTION OF BILLS AND September 122 4,756 +4,634 SHORT-TERM SECURITIES HELD BY FEDERAL October 89 5,905 +5,816 RESERVE BANKS November 57 3,397 +3,340 December 42 6,976 +6,934 Total.. 554 91,058 +90, 504 [In thousands of dollars] For description and back figures see BULLETIN for January 1933, p. 43. With- 91 days PAPER CURRENCY OF EACH DENOMINATION Total i d n a y 1 s 5 30 1 6 d a to ys 60 3 1 d a t y o s 9 6 0 1 d a to ys m to o s 6 . 6 O m ve o r s. IN CIRCULATION [Outside Treasury and Federal Reserve banks. In millions of dollars] Bills discounted: June 6 28,997 22,451 2,644 1,763 1,846 4 1933 1934 June 13 27,876 20,927 1,565 1,856 2,927 478 123 Denomina- June 20 27,956 20,006 1,075 1,514 5,064 297 tion Nov. 30 Dec. 30 Jan. 31 Feb. 28 Mar. 31 Apr. 30 May 31 June 27 27,015 18,766 1,392 1,268 5,276 Bills bought in $1 388 402 386 393 397 394 396 open market: $2 33 33 32 33 33 33 33 June 6-_ 5,221 368 1,406 659 2,788 $5 702 719 699 722 730 722 719 June 13 5,201 197 1,404 3,354 246 $ $ 1 2 0 0 1 1 , , 2 33 0 6 5 1 1 , , 2 3 2 4 9 2 1 1, , 2 1 8 7 8 3 1 1 , , 2 3 1 0 2 4 1 1 , , 2 3 3 0 0 2 1 1 , , 2 2 2 9 5 2 1 1 , , 2 2 8 2 8 5 J J u u n n e e 2 2 0 7 5 5 , , 2 2 0 1 0 5 1 1 , , 3 4 5 1 8 1 2,7 3 6 7 2 1 3,1 8 2 4 8 4 3 1 4 9 3 8 $50 362 364 350 347 346 342 341 Treasury certifi- $ $ 1 5 0 0 0 0 . . 6 1 1 2 3 5 6 1 1 2 8 5 5 1 9 1 3 9 5 1 8 1 7 7 5 1 8 1 4 7 5 1 8 1 1 7 5 1 7 1 9 6 ca J te u s n e a n 6 d bills: 809,470 79,136 32,105 48, 225 75, 662 347,162 227,180 $1,000 239 237 228 225 230 230 228 June 13 821, 726 31,470 67,880 110, 629 294,462 228,681 $5,000 7 8 7 7 7 8 7 June 20 765,365 33,105 33, 225 80, 262 129,469 489,304 . $10,000 12 10 10 10 9 9 9 June 27 741,-'- 31,476 19, 600 82,462 116,769 491, 548 . Municipal war- TotaL 5,022 5,085 4,884 4,957 4,986 4,954 4,941 rants: June 6 534 492 NOTE.—Figures include, in addition to currency outside the Treasury June 13 534 492 and Federal Reserve banks, unassorted currency held by these institu- June 20 527 492 tions, amounting to $5,000,000-$18,000>000, and also $1,000,000 of currency June 27 519 484 of unknown denominations reported by the Treasury as destroyed. FEDERAL DEPOSIT INSURANCE CORPORATION—INSURED BANKS AND DEPOSITS Number of insured banks Insured dep d o o s l i l t a s r s ( ) i n i millions of R t s o u a t r t a e i l o d d i t e n o - - Number of Class of bank Ma 1 y 93 4 31, Ap 1 r 9 . 3 3 4 0, De 1 c 9 . 33 31, Ma 1 y 93 4 31, Ap 1 i 9 . 3 3 4 0, De 1 c 9 . 3 3 3 1, l M ia p a 1 b o y 9 i s 3 l i i 4 3 t t 1 y , a M i c n c a s 1 o y u 93 u r 4 e n 3 d 1 ts , (percent) Members (Federal Reserve System) 6,337 6,296 5,863 8,685 8,663 8,312 32 34,342,035 National 5,390 5, 359 5,061 6,102 6,092 5,916 34 25,348,413 State. . 947 937 802 2,583 2,571 2,396 27 8,993, 622 Nonmembers (Federal Reserve System) 7,742 7.687 6,754 7,109 7,098 6,751 65 21,815,183 Mutual savings . 235 235 8 4,488 4,488 (2) 70 8,907,384 Other 7,507 7,452 2,621 2,610 (2) 59 12,907, 799 All banks 14,079 13,983 12,617 15,794 *. 15'761 15,063 41 56,157, 218 1 Up to $2,500 in each insured account. Beginning July 1, 1934, this figure will be $5,000. 2 Not available separately. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

500 FEDERAL RESERVE BULLETIN July 1934 INDUSTRIAL PRODUCTION, BY INDUSTRIES (ADJUSTED INDEXES) [Index numbers of the Federal Reserve Board; adjusted for seasonal variation. 1923-25 average=100] 1933 1934 Industry May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Manufactures—Total '77 93 101 91 '83 76 71 73 76 80 82 85 P86 IRON AND STEEL 49 72 100 80 66 61 47 61 56 64 67 77 85 Pig iron - - 29 43 62 63 53 45 36 40 40 45 51 55 66 Steel ingots 51 75 103 82 67 63 48 63 58 66 69 79 87 TEXTILES 108 133 130 p 114 P91 P87 P91 P89 Cotton consumption _ _ _. _ __ 113 139 135 120 103 95 89 77 91 95 97 97 95 Wool _ _ 90 116 124 107 96 88 80 67 70 73 72 66 65 M C o a n c SV hi I n TT e » r p y ti c a \j c \ tivity J - _- _ 1 9 0 1 5 1 1 3 1 4 8 1 12 4 9 1 1 1 1 1 8 5 1 9 0 6 5 8 9 3 7 8 8 1 6 6 7 9 3 8 7 3 0 8 7 5 2 8 7 2 1 '6 7 8 1 6 7 3 3 Carpet and rug loom activity 1 42 60 62 61 67 67 63 48 48 54 59 53 58 Silk 123 147 131 Deliveries. _. _ _. 136 172 143 113 91 82 103 92 103 114 129 115 112 Loom activity ! 96 96 105 FOOD PRODUCTS 99 100 100 95 105 85 '91 86 96 91 84 93 98 Slaughtering and meat packing- 102 105 106 110 127 90 98 89 100 94 86 102 108 Hogs. 106 107 109 113 147 85 101 85 95 80 69 95 104 Cattle 92 99 98 102 95 91 87 88 102 112 106 110 110 Calves 101 102 103 105 106 104 104 106 122 122 122 120 128 Sheep 153 152 145 146 144 151 142 147 139 133 131 129 127 Wheat flour 97 97 95 64 70 76 82 81 91 94 92 91 89 Sugar meltings ._ 89 82 83 84 75 76 '82 '78 87 73 65 64 71 PAPER AND PRINTING.. _ » 101 pill P106 P104 P99 P99 PIOO PIOO v 100 Woo N d e p w u s l p p r i a n n t d paper P8 6 5 0 P9 6 6 4 P10 6 6 7 P10 6 2 9 P60 66 P9 7 0 1 P9 6 2 7 P9 6 2 4 63 66 P9 6 2 8 P9 6 2 8 Book paper _ 92 103 P118 P103 p 103 Wrapping paper 80 95 p 107 p 99 p 93 »70 Fine paper _ 96 121 P137 P126 P103 P106 P97 P109 Wood pulp, mechanical 61 69 PapeWr oboodx epsulp, chemical 1 9 72 9 1 1 1 83 3 p 2 1 1 3 3 5 P 1 1 3 7 9 3 P 1 1 6 4 7 1 p 1 1 4 3 3 7 P 1 1 2 31 6 P 1 1 3 49 5 Newsprint consumption . 96 100 102 103 106 105 104 106 108 112 112 115 115 LUMBER _ 30 38 46 46 36 33 30 32 34 29 38 33 33 TRANSPORTATION EQUIPMENT: Automobiles '50 '65 '69 61 '55 '45 '30 '46 '56 '71 '78 '85 78 Locomotives o 0 1 1 1 0 2 3 '2 0 2 10 10 Shipbuilding 25 16 19 15 20 39 41 41 26 30 59 65 39 LEATHER AND PRODUCTS 110 114 116 102 92 93 92 94 97 107 '106 114 117 Tanning 79 89 94 88 82 82 91 89 91 94 88 ' 95 93 Cattle hide leathers 74 76 80 77 74 76 85 84 81 89 84 r 90 89 Calf and kip leathers 79 102 91 82 73 69 84 90 85 78 72 85 78 Goat and kid leathers 93 109 132 126 113 109 111 103 126 124 116 118 118 Boots and shoes 129 131 131 110 99 100 93 97 101 116 ' 118 127 *>132 CEMENT AND GLASS: Cement >_ _ .. . 42 61 56 50 37 35 39 36 40 61 58 55 57 Glass, plate 84 112 144 130 107 70 52 106 99 98 106 98 83 NONFERBOUB METALS: » Tin deliveries » 80 94 109 125 112 95 80 56 56 54 58 71 73 FUELS, MANUFACTURED: Petroleum refining 147 154 155 153 157 152 145 137 142 144 143 152 153 Gasoline * .. 187 198 198 198 205 195 184 172 177 181 177 191 191 Kerosene >_ ... . 87 92 92 87 82 77 77 80 89 87 95 98 95 Fuel oill 95 101 106 98 99 102 93 92 95 98 101 99 101 Lubricating oil1 88 80 82 84 88 88 102 92 92 86 90 100 108 Coke, byproduct 61 75 91 96 91 82 75 77 78 85 91 93 102 RUBBER TIRES AND TUBES 94 115 143 111 103 90 97 108 97 '100 '106 '97 . 81 Tires, pneumatic . _ 97 120 148 116 107 93 100 113 101 '103 '110 '100 1 83 Inner tubes - 68 80 111 75 72 68 72 68 69 '74 '82 '76 63 TOBACCO PRODUCTS 143 135 117 123 115 108 95 123 138 132 119 128 128 Cigars 61 66 69 68 68 57 62 67 74 66 66 66 62 Cigarettes 204 186 151 163 151 143 118 166 188 181 158 175 178 Minerals—Total 78 84 90 91 87 81 81 85 88 91 100 90 89 Bituminous coal 57 64 76 75 65 61 65 66 67 74 84 72 72 Anthracite .» _ 43 65 67 61 74 55 73 68 82 89 109 73 76 Petroleum, crude 134 134 132 134 125 120 116 119 120 118 122 125 127 Iron ore 14 15 40 57 68 63 23 40 Zinc. 45 55 71 77 77 77 72 67 66 66 68 64 65 Lead.. 37 41 36 36 57 64 71 67 64 64 57 56 66 Silver 30 24 34 28 39 33 33 29 37 36 47 45 44 p Preliminary. ' Revised. ' Corrected. i Without seasonal adjustment. «Includes also lead and zinc: see " Minerals." NOTE.—For description see BULLETINS for February and March 1927. For latest revisions see BULLETINS for March 1932, pp. 194-196, and September 1933, pp. 584-587. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

July 1934 FEDERAL RESERVE BULLETIN 501 INDUSTRIAL PRODUCTION, BY INDUSTRIES (UNADJUSTED INDEXES) [Index numbers of the Federal Reserve Board; without seasonal adjustment. 1923-25 averagt5 = 100] 1933 1934 Industry May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Manufactures—Total 80 93 97 89 84 '76 70 67 75 '82 86 90 P89 IRON AND STEEL 53 72 93 79 65 59 44 53 54 67 75 85 92 Pig iron 29 43 59 60 52 45 37 39 40 46 53 59 67 Steel ingots 56 75 96 81 67 61 44 55 55 69 78 88 94 TEXTILES 108 126 121 P 108 »99 P74 P91 P97 P96 P89 Cotton consumption _ ._. 116 133 122 108 100 97 93 71 95 101 102 104 97 Wool 85 109 115 103 99 93 84 68 71 76 73 65 63 Consumption 96 121 126 110 111 107 93 74 72 79 73 '65 58 Machinery activity _ ___ 91 118 129 115 96 83 81 69 83 85 82 71 73 Carpet and rug loom activity 42 60 62 61 67 67 63 48 48 54 59 53 58 Silk 122 134 126 Deliveries 135 153 136 118 95 82 106 82 117 122 124 114 111 Loom activity 96 96 105 FOOD PRODUCTS 98 99 97 88 99 86 '9Q 89 102 90 82 87 96 Slaughtering and meat-packing 99 105 99 93 110 89 108 106 119 94 81 92 105 Hogs 102 110 97 86 110 73 111 112 128 88 69 84 100 Cattle 89 93 97 100 106 107 100 93 103 98 92 97 107 Calves 114 106 100 96 101 109 106 100 113 114 124 131 144 Sheep __ 150 149 145 147 167 167 141 144 140 125 119 121 124 Wheat flour 91 86 92 69 83 86 89 78 89 91 86 83 84 Sugar meltings 100 98 101 94 80 72 64 '45 57 71 77 75 80 PAPER AND PRINTING... _._ . p 103 P102 »105 p 102 P98 P102 P102 v 104 P 102 Wood pulp and paper *87 P96 P99 P100 p 100 P91 P 87 P91 P94 p 94 p 94 Newsprint . 61 65 66 68 60 66 70 67 65 63 65 69 69 Book paper 90 103 p 110 p 109 p 119 P 104 p 104 p 102 Wrapping paper 80 96 p 101 p 94 P83 P70 p 66 Fine paper 97 121 P126 P119 P102 P 107 P 103 Wood pulp, mechanical..- 75 75 PapeWr oboodx epsulp, chemical 1 9 7 9 2 1 1 1 90 4 P 1 20 2 4 8 P1 1 3 7 6 5 P 1 18 4 3 1 P 1 1 4 50 0 P 1 1 2 34 6 p 1 1 3 22 1 Newsprint consumption.. 99 99 91 92 104 111 111 109 104 110 117 123 LUMBER 32 40 45 49 37 34 29 29 30 28 39 35 35 TRANSPORTATION EQUIPMENT: Automobiles '63 '74 73 '66 '61 '40 '19 '26 '46 '76 '96 '109 98 Locomotives ._ 0 0 1 1 0 2 4 1 0 2 9 Shipbuilding- 31 20 28 22 20 28 36 32 18 21 46 63 50 LEATHER AND PRODUCTS 101 110 115 113 107 102 88 81 90 109 '110 112 107 Tanning __ 75 87 94 90 87 87 89 87 87 97 88 '93 87 Cattle hide leathers 70 75 78 75 77 78 85 81 82 95 85 '90 84 Calf and kip leathers . 75 99 106 99 85 82 79 77 70 72 64 76 74 Goat and kid leathers _ 87 109 123 124 119 113 110 112 119 129 119 117 109 Boots and shoes 118 124 128 127 119 112 88 76 92 117 '124 124 p 120 CEMENT AND GLASS: Cement _ 50 64 68 65 46 40 38 28 30 37 42 CO 68 Glass, plate. . 92 115 142 132 108 70 50 80 88 106 115 108 90 NONFERROUS METALS: i Tin deliveries 80 94 109 125 112 95 80 56 55 54 58 71 73 FUELS, MANUFACTURED: Petroleum refining _ 147 153 154 153 157 152 146 138 142 144 143 152 153 Gasoline 187 198 198 198 205 195 184 172 177 181 177 191 191 Kerosene 83 86 86 83 83 80 83 86 91 88 92 97 92 Fuel oil _ 95 101 106 98 99 102 93 92 95 98 101 99 101 Lubricating oil 88 80 82 84 88 88 102 92 92 86 90 100 108 Coke, byproduct ._ 61 73 89 93 89 82 77 78 78 87 94 94 101 RUBBER TIRES AND TUBES 118 139 140 110 98 79 73 75 90 '108 '117 '115 102 Tires, pneumatic 123 145 145 114 101 81 75 78 93 '112 '121 '118 106 Inner tubes _ . 83 96 105 83 72 62 52 49 62 '78 '89 '87 77 TOBACCO PRODUCTS 145 147 126 131 128 116 97 99 131 120 113 118 130 Cigars 63 72 72 72 77 69 73 50 57 57 60 62 64 Cigarettes 206 204 167 176 167 150 117 136 185 164 150 159 179 Minerals—Total-- 76 82 89 94 93 88 84 80 85 88 91 81 87 Bituminous coal 50 57 69 74 69 67 72 69 74 78 84 60 62 Anthracite . 43 57 55 61 75 71 75 67 89 95 89 76 76 Petroleum, crude 136 137 135 136 129 122 115 115 115 116 121 125 129 Iron ore__ . . _ 21 30 81 117 131 108 19 60 Zinc . .... . 46 53 66 71 73 75 72 68 70 71 72 67 66 Lead 36 42 34 35 54 66 74 68 65 66 58 55 65 Silver. 29 23 29 28 37 33 36 29 37 39 52 46 43 i 1 Includes also lead and zinc; see "Minerals." p Preliminary. r Revised. 'Corrected. NOTE.—For description see BULLETINS for February and March 1927. For latest revisions see BULLETINS for March 1932, pp. 194-196 and September 1933, pp. 584-587. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

502 FEDEKAL RESERVE BULLETIN July 1934 FACTORY EMPLOYMENT AND PAY ROLLS, BY INDUSTRIES [Adjusted to Census of Manufactures through 1931. 1923-25 average=100) Factory employment Factory pay rolls Adjusted for seasonal varia- Without seasonal adjustment tion Without seasonal adjustment Industry and group 1934 1933 1934 1933 1934 1933 May April May May April May May April May Total.. 82.4 82.3 62.6 82.4 82.2 62.9 67.1 67.3 42.7 IRON AND STEEL AND PRODUCTS — 75.1 72.6 51.0 74.2 71.5 50.4 61.2 56.8 29.8 Blast furnaces and steel works 76.8 72.9 -19.8 75.7 71.4 49.1 66.1 59.4 27.8 Cast-iron pipe 48.6 51.5 33.0 47.6 51.0 32.4 27.6 28.0 16.2 Cutlery and edge tools 81.3 81.9 57.7 80.9 79.1 57.4 59.3 59.4 36.8 Hardware -- 82.0 85.3 51.2 81.3 84.7 50.8 61.8 70.3 31.4 Steam, hot-water heating apparatus, etc.. 47.7 45.8 45.6 47.4 45.3 45.3 30.6 28.3 24.0 Stoves - 95.5 90.9 56.6 93.6 88.4 55.6 68.5 63.8 35.8 Structural metal work 58.5 56.0 40.6 58.9 56.7 40.8 41.5 37.6 21.6 Tin cans, etc. - 91.2 88.2 72.9 90.3 87.8 72.2 86.9 84.2 67.0 Wirework _ 134.8 131.4 89.7 135.2 132.7 90.0 123.1 110.6 66.6 MACHINERY 81.3 80.3 50.1 82.0 81.5 50.5 62.2 60.5 30.6 Agricultural implements.. 83.0 87.2 35.4 80.5 82.3 34.3 87.2 93.6 28.0 Electrical machinery, etc 65.4 63.7 45.5 65.4 63.7 45.5 49.9 47.8 29.2 Engines, turbines, etc 68.9 69.3 37.1 67.9 68.2 36.6 45.2 44.8 20.7 Foundry and machine-shop products- 73.6 71.6 45.2 72.4 70.4 44.5 56.8 54.4 26.4 Machine tools 71.9 70.8 31.3 70.8 69.8 30.8 59.3 57.7 18.6 Radios and phonographs. 201.2 200.2 119.0 239.4 253.7 141.7 112.4 108.9 71.0 Textile machinery 75.9 75.0 46.8 74.7 74.4 46.1 62.9 60.9 31.4 TRANSPORTATION EQUIPMENT 99.4 99.1 91.0 93.8 44.7 88.0 92.2 38.7 Automobiles 114.4 114.9 53.9 104.1 108.8 49.0 100.4 107.4 42.9 Cars, electric and steam railroad. 48.2 43.9 22.8 43.9 40.6 20.8 46.7 43.0 17.9 Locomotives 29.2 25.3 10.9 28.6 24.9 10.7 12.7 10.9 4.0 Shipbuilding 73.1 71.7 47.5 70.9 67.3 46.1 60.0 53.9 32.5 RAILROAD REPAIR SHOPS.. 59.6 57.8 49.7 59.2 57.4 49.4 53.8 53.0 38.9 Electric railroads 66.7 66.3 66.2 66.7 66.3 66.2 59.4 59.2 55.5 Steam railroads 59.1 57.2 48.5 58.7 56.8 48.2 53.5 52.7 37.7 NONFERROUS METALS AND PRODUCTS.. 77.8 76.9 54.1 78.2 76.0 54.4 58.9 35.3 Brass, bronze, and copper 81.2 79.1 55.2 80.7 77.7 54.9 62.1 59.8 35.7 Lighting equipment 65.6 65.4 44.3 66.7 64.6 45.1 52.7 52.3 32.9 Silverware and plated ware 71.1 72.7 51.8 71.6 72.6 52.2 52.0 51.2 32.1 Smelting and refining 65.3 62.8 41.9 65.8 61.5 42.2 42.0 38.7 24.1 Stamped and enameled ware _. 95.6 94.0 70.0 94.3 91.4 69.0 83.6 80.8 46.6 LUMBER AND PRODUCTS.. 51.0 49.4 37.9 51.3 50.0 38.2 34.6 33.3 20.7 Furniture 61.3 60.8 53.6 64.5 63.0 56.4 40.5 40.3 28.8 Lumber, mill work 40.4 39.4 31.8 39.9 39.2 31.4 25.3 24.6 17.4 Lumber, sawmills 36.1 34.3 23.7 35.6 34.5 23.3 24.2 22.5 11.5 STONE, CLAY, AND GLASS PRODUCTS. 57.7 55.3 41.3 56.2 54.7 40.2 39.5 38.8 24.5 Brick, tile, and terra cotta 33.1 30.5 24.4 31.3 30.3 23.1 18.1 16.4 9.8 Cement._. 57.6 48.0 40.5 55.9 48.2 39.3 35.8 30.6 21.3 Glass 95.1 95.9 64.6 93.4 94.4 63.4 75.8 80.8 49.6 Pottery 74.9 73.9 54.7 74.2 72.8 54.2 50.2 50.0 29.3 TEXTILES AND PRODUCTS 96.1 99.1 82.3 96.0 97.8 82.3 74.1 79.8 52.0 A. Fabrics 94.9 96.8 78.3 94.8 96.1 78.2 74.9 79.3 52.1 Carpets and rugs 68.0 70.2 49.0 67.3 68.4 48.5 53.3 54.7 32.6 Cotton goods... 101.4 103.3 77.9 100.6 102.9 77.4 79.5 85.9 49.2 Dyeing and finishing 113.0 116.4 89.2 113.0 113.6 89.2 87.8 94.8 69.7 Knit goods 113.9 114.5 97.8 113.2 112.4 97.2 106.4 108.9 72.2 Silk and rayon goods 72.8 78.4 69.2 72.4 77.3 68.9 56.3 63.3 43.4 Woolen and worsted goods. 75.3 74.9 68.9 77.0 76.1 70.4 54.1 55.4 44.8 B. Wearing apparel 94.7 100.0 88.2 94.8 97.3 88.1 68.1 76.1 48.8 Clothing, men's 81.5 88.0 73.7 85.7 90.8 77.4 53.3 61.4 35.2 Clothing, women's 126.5 132.2 122.8 120.4 120.0 117.0 88.6 98.6 65.8 Millinery 78.0 83.3 79.5 78.1 75.9 79.2 67.9 76.9 59.6 Shirts and collars 106.7 108.3 91.7 107.2 109.6 92.2 94.1 97.9 58.6 LEATHER AND PRODUCTS. 91.4 92.3 79.9 94.0 93.0 82.2 78.9 82.1 57.3 Boots and shoes. 91.3 92.2 81.6 94.2 93.1 84.2 77.6 81.8 56.5 Leather 92.1 93.2 73.8 93.4 93.0 74.8 82.0 81.9 59.2 FOOD PRODUCTS 99.6 97.2 85.1 106.4 104.0 91.1 87.2 83.1 70.4 Baking 113.2 111.2 96.8 113.2 113.0 96.8 95.3 91.3 78.1 Butter _ 84.4 79.2 73.2 83.4 80.8 72.3 64.7 61.9 56.6 Canning and preserving 67.9 71.9 57.2 106.1 97.2 89.4 68.6 69.5 48.5 Confectionery 71.6 74.7 72.1 79.6 82.2 80.2 60.6 61.8 51.1 Flour 74.0 74.5 65.2 75.4 75.6 66.4 61.2 61.2 52.7 Ice cream.. 79.6 64.9 59.7 76.0 67.5 57.0 63.7 51.4 46.5 Slaughtering and meat packing. 96.7 92.4 80.4 97.9 95.4 81.4 80.7 76.1 62.1 Sugar refining, cane 86.4 84.7 75.8 85.9 85.3 75.3 70.5 70.4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

July 1934 FEDERAL RESERVE BULLETIN 503 Factory employment and pay rolls, by industries—Continued Factory employment Factory pay rolls Without seasonal adjustment Adjusted for seasonal varia- Without seasonal adjustment tion Industry and group 1934 1933 1934 1933 1934 1933 May April May May April May May April May TOBACCO PRODUCTS - 61.3 64.7 59.2 61.6 65.7 59.5 46.3 46.2 42.1 Chewing and smoking tobacco and snuff. 76.9 79.3 72.5 78.8 81.8 74.3 65.3 66.3 62.6 Cigars and cigarettes - 62.8 57.5 59.4 63.6 57.6 43.9 43.6 39.6 PAPER AND PRINTING 95.9 95.1 96.5 95.5 81.3 79.7 64.9 Boxes, paper -- 85.3 85.3 68.4 88.7 87.8 71.1 76.2 75.7 55.6 Paper and pulp - ._.. 107.2 106.8 82.1 107.2 106.8 82.1 79.8 81.3 58.7 Book and job printing 86.6 84.7 75.1 87.6 85.3 75.9 73.4 70.8 59.0 Printing, newspapers and periodicals.. 99.1 99.0 90.8 98.7 90.5 88.4 87.3 76.7 CHEMICALS AND PETROLEUM PRODUCTS. _ 106.1 113.3 85.7 107.9 109.4 87.1 88.3 92.3 68.0 A. Chemical group, except petroleum- 107.4 109.8 85.1 Chemicals 111.2 110.8 75.4 113.1 110.1 76.7 94.4 95.8 Druggists' preparations 97.7 100.6 81.8 101.3 102.4 84.9 88.5 92.4 71.4 Explosives 98.3 99.2 65.5 102.0 102.2 67.9 75.2 78.6 41.8 Fertilizers - 111.8 181.5 84.9 105.3 97.8 79.9 84.0 132.1 52.3 Paints and varnishes. _ 107.4 102.6 83.8 103.6 102.2 80.8 87.9 83.0 67.1 Rayon and allied products 267.7 319.0 246.9 267.7 319.0 246.9 191.2 221.3 149.1 Soap - 102.3 104.5 83.5 103.0 103.3 84.1 87.1 88.8 68.9 B. Petroleum refining 109.5 107.8 95.3 109.7 107.8 95.4 92.7 92.0 80.2 RUBBER PRODUCTS 89.1 '90.0 62.4 87.5 61.3 70.3 '73.4 43.7 Rubber boots and shoes 47.8 55.5 37.0 50.3 58.0 38.9 42.8 49.6 30.9 Rubber tires and inner tubes.. 82.7 82.1 56.8 78.9 80.7 54.2 64.5 67.6 NOTE.—Revised indexes. The ind exes for factory employment and pay rolls unadjusted for seasonal variation are compiled by the Bureau of Labor Statistics. For description and back figures see BULLETIN for May 1934, pp. 270-271. For description and back figures for the seasonally adjusted index of factory employment computed by the Federal Reserve Board, see BULLETIN for June 1934, pp. 324-343. r Revised. Indexes for March 1934 also have been revised as follows: Factory employment without seasonal adjustment, 87.1; factory employment adjusted for seasonal variation, 88.3; factory pay rolls without seasonal adjustment, 70.5. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

504 FEDERAL RESERVE BULLETIN July 1934 WHOLESALE PRICES, BY GROUPS OF COMMODITIES [Index of Bureau of Labor Statistics. 1926=100] Other commodities All Year, month, and week m c t o i o e m d s i - - p u r c o t d s - Foods Tota1 H p l i r e d o a e d t s h u a e 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 l t s t a s lm B a u t i e ld ri i a n l g s c C a d l h r s e u a m g n s i d - i f n H u g r o n g u i o s s o h e d - - s l M an is e c o e u l s - 1929 95.3 104.9 99.9 91.ft 109.1 90.4 83.0 100.5 95.4 <H.2 94.3 82.6 1930 86.4 88.3 90.5 85. 100.0 80.3 78.5 92.1 89.9 i39.1 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. 72.9 54.9 70.3 80.2 71.4 re. 5 75.1 64 4 1933 65.9 51.4 60.5 71.?, 80.9 64.8 66.3 79.8 77.0 7?, 6 75.8 62.5 1933—May 62.7 50.2 59.4 66. 76.9 55.9 60.4 77.7 71.4 re ? 71.7 58.9 J J u u n ly e . 6 6 8 5 . . 9 0 6 5 0 3. . 2 1 6 65 1 . . 5 2 6 7 8 2 . . 9 2 8 8 2 6 . . 4 3 6 6 8 1 . . 0 5 6 6 1 5 . . 5 3 8 7 0 9 . . 6 3 7 7 9 4 . . 5 7 ;r r e e . . 7 2 7 7 4 3. . 4 8 6 6 0 4 . . 8 0 A Se u p g t u e s m t ber... _. 6 70 9 . . 8 5 5 5 7 7 . . 6 0 6 64 4 . . 9 8 7 7 4 6 . . 1 1 9 9 2 1. . 7 3 7 7 6 4 . . 9 6 6 70 5 . . 4 5 8 8 1 2 . . 2 1 8 82 1 . . 7 3 ; r r e e . . I 7 7 7 7 9 . . 6 3 6 6 5 5 . . 4 1 October 71.2 55.7 64.2 77.? 89.0 77.1 73.6 83.0 83.9 re. 7 81.2 65.3 November 71.1 56.6. 64.3 77.?, 88.2 76.8 73.5 82.7 84.9 re. 4 81.0 65.5 December 70.8 55.5 62.5 77.5 89.2 76.4 73.4 83.5 85.6 re. 7 81.0 65.7 1934—January 72.2 58.7 64.3 78.3 89.5 76.5 73.1 85.5 86.3 74 4 80.8 67.5 February. _ ._ 73.6 61.3 66.7 78.7 89.6 76.9 72.4 87.0 86.6 r5.5 81.0 68.5 March __ . 73.7 61.3 67.3 78.5 88.7 76.5 71.4 87.1 86.4 ffi, 7 81.4 69.3 April 73.3 59.6 66.2 78.6 88.9 75.3 71.7 87.9 86.7 *75. 5 81.6 69.5 May 73.7 59.6 67.1 78.9 87.9 73.6 72.5 89.1 87.3 rs.4 82.0 69.8 Week ending— 1934—Mar 3 73.6 62.0 67.5 78.i 89.8 76.6 73.5 85.1 86.5 75. 4 82.3 68.6 Mar. 10 . 73.8 62.0 68.1 78.7 89.0 76.3 73.0 86.4 86.2 *r«.7 82.5 68.8 Mar. 17 73.7 62.0 67.7 78. 88.8 76.0 72.6 86.5 86.2 r5.8 82.4 69.2 Mar. 24 .. 73.5 61.4 67.3 78. 88.8 76.0 72.4 86.4 86.2 *rs. 8 82.5 69.2 Mar 31 73.4 61.4 66.5 78.6 89.4 75.8 72.4 86.4 86.3 r5.8 82.5 69.3 Apr. 7 73.3 60.4 66.1 78.7 89.5 75.7 72 6 86.5 86.7 75.5 82.5 69.8 Apr. 14 73.3 60.5 65.8 78.9 89.8 75.5 72.9 86.9 86.5 75A 82.8 69.6 Apr. 21 __ 73.3 59.7 66.6 78.8 89.7 75.2 73.1 87.0 86.3 75.5 83.1 69,3 Apr. 28 73.5 59.1 66.6 79.2 89.6 75.0 73.5 88.3 87.1 ^5.3 83.0 69.2 May 5 73.4 59.1 66.6 79.0 89.5 74.1 72.7 88.7 87.4 75. 3 83.1 69.6 May 12 ... 73.8 60.5 67.3 79. 89.3 73.5 73.0 88.8 87.4 '5. 3 83.0 70 1 May 19 _ 73.5 59.6 67.2 79. 88.5 73.5 73.2 88.7 87.0 75 A 83.0 69.7 May 26 73.7 60.1 67.4 79.0 88.0 73.1 73.4 88.7 87.2 75.3 83.9 69 7 June 2 73.9 60.6 67.7 79.0 87.7 72.7 73.7 88.7 87.6 75.3 83.6 69.6 June 9 73.8 60.7 67.6 78.9 87.2 72.7 73.8 87.8 87.8 75 A 83.4 70 0 June 16 74.6 63.7 70.2 78. 87.6 72.5 73.7 88.0 87.7 -75 A 83.4 70 3 June 23 75.0 65.8 71.3 78.7 88.1 72.5 73.4 87.1 87.6 75. 5 83.2 70.5 June 30 74.8 64.8 70.9 78.5 88.2 71.8 73.3 87.0 87.8 r5.8 83.2 70 1 1933 1934 1933 1934 Subgroups Subgroups May Feb. Mar. Apr. May May Feb. Mar. Apr. May FARM PRODUCTS: METALS AND METAL PRODUCTS: Grains. 52.8 63.2 62.3 58.8 63.9 Agricultural implements 83.0 85 ?, 85.2 85 ?, 91 1 Livestock and poultry 46.8 48.2 49.5 49.2 47.8 Iron and steel 75.2 86.3 86.3 87.3 90.2 Other farm products 51.8 68 3 67 7 65.7 65.0 Motor vehicles 90.4 97.8 97.8 97.8 97.3 FOODS: Nonferrous metals.. 56.6 65.8 66.3 68.0 68.1 Butter, cheese, and milk 58.8 69.1 68.9 66.5 67.1 BUILDING MATERIALS: Cereal products 69.3 85 7 85,3 84.8 87.3 Brick and tile 75.2 87.2 88.5 90.7 91.2 Fruits and vegetables 58.8 71.7 71.6 67.9 68.2 Cement 81.8 93.9 93.9 89.7 89.4 Meats .. . 52.3 53.3 56.5 57.3 60.0 Lumber 59.6 87.3 86.4 87.2 85.9 Other foods 60.4 64 1 63 5 62 1 60.8 Paint materials 70.7 79.3 79.7 79.8 80 3 HIDES AND LEATHER PRODUCTS! Plumbing and heating 61.3 72.7 72.7 76.2 75.0 Boots and shoes 83.6 98.4 98.5 98.5 98.5 Structural steel 81.7 86.8 86.8 86.8 94.5 Hides and skins 67.3 78.0 73.4 76.7 73.5 Other building materials 78.8 90.3 89.9 90.4 92 0 Leather 68.3 80.1 79.7 78.4 76.3 CHEMICALS AND DRUGS: Other leather products 77.2 86.9 86.7 86.7 86.8 Cheinicals 80.9 78.8 79.0 78.6 78.6 TEXTILE PRODUCTS: Drugr,s and nhftrmflcmitioala 55.0 71.5 71.9 72.2 72.8 Clothing . 61.9 87.2 87.2 85.7 82.7 Fertilizer mateirials 66.8 69.2 69.5 68.7 66.4 Cotton goods 57.9 88.6 89 1 88.2 86.3 Mixed fertilizers 63.1 72.5 72.6 72.7 73 2 Knit goods 48.0 67.0 65.6 64.2 65.3 HOUSEFURNISHING GOODS! Silk and rayon 29.1 31.0 29.4 28.4 26.5 Furrtishings 72.0 83.0 83.2 83.5 84.1 Woolen and worsted goods 61.5 84.3 84.0 82.0 81.0 Furr.itnra 71.6 79.2 79.8 79.9 80 1 Other textile products. 70.7 77.8 78.5 78.9 77.3 MISCELLANEOUS: FUEL AND LIGHTING MATERIALS: Auto tires andtubes 37.6 43.5 44.6 44.6 44.6 Anthracite 78.5 81.2 81.2 78.1 75.7 Cattle feed .__ 54.4 73.4 79.6 76.1 72 5 Bituminous coal 78.3 91.1 91.1 93.7 94.6 Paper and pulp 70.7 82.7 82.7 83.6 83.7 Coke 75.2 83.5 83.4 84.3 84.5 Rubber, crude 10.2 21.4 22.8 24 6 27 7 Electricity 94.6 91.8 88.5 88.3 Other miscellaneous 74.0 83.2 83.2 83.2 83.6 Petroleum products.. 9 3 9 1 . . 2 5 8 5 9 0 . . 3 3 8 4 9 8 . . 7 4 4 92 9 . . 4 2 50.7 Back figures.—For monthly and annual indexes of groups, see Annual Report for 1932 (table 110); indexes of subgroups available at Bureau of Labor Statistics. For weekly indexes covering 1932 and 1933, see Annual Report for 1932 (table 111) and BULLETIN for February 1934, p. 139. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

505 JULY 1934 FEDERAL RESERVE BULLETIN 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 1933 1934 1933 1934 1933 1934 1933 1934 1933 1934 1933 1934 1933 1934 January 83.4 186.5 12.0 15.1 4.3 10.7 5.8 9.4 42.7 113.7 1.4 19.6 17.3 17.9 February 52.7 96.7 11.8 14.5 2.8 4.2 7.6 7.6 17.2 53.2 2.2 5.4 11.0 11.8 March 60.0 178.3 16.0 28.1 6.4 15.9 7.2 13.0 17.6 92.9 1.3 • 8.8 11.5 19.6 April 56.6 131.4 19.1 22.8 6.2 8.4 6.6 11.9 13.6 69.9 1.1 8.6 9.9 9.8 May 77.2 134.4 26.5 24.8 9.4 8.3 8.9 24.7 19.0 56.8 1.7 10.4 11.6 9.5 June > 102.3 27.7 26.8 9.6 24.4 3.5 10.3 July 82 6 23 6 17.8 11 5 18.9 2.9 7 8 August 106.0 21.9 14.1 10.5 51.4 2.6 5.6 September 120.1 21.5 15.1 7.4 60.7 2.2 13.0 October 145.4 21.5 9.8 9.8 92.7 2.2 9.3 No VPTT) b$r 162 3 23 6 8 2 7 3 111 1 2.6 9 6 December 207.2 __ 23.9 6.7 7.1 133.3 16.3 20.0 Year 1, 255. 7 249.3 127.5 99.4 602.7 40.0 136.9 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] 1934 1933 Number 1934 1933 of centers Federal Reserve district May April May May April May New York City 1 14, 653 16,954 13,977 Outside New York City 140 14,104 14, 277 11,509 Boston. 13,247 11, 802 8,542 NewYork__ 33, 708 18,830 17,518 Federal Reserve district: Philadelphia 6,735 11, 959 5,013 Boston 11 1,582 1,660 1,335 Cleveland 7,771 10,810 6,604 New York 7 15, 244 17, 498 14,504 Richmond 14,325 11,014 5,409 Philadelphia 10 1,459 1,456 1,066 Atlanta— 10, 474 13, 252 5,214 Cleveland 13 1,419 1,362 1,062 Chicago. 22,186 24, 534 10,429 Richmond 7 517 538 405 St. Louis 8,385 7,983 8,296 Atlanta _ 15 665 660 555 Minneapolis 5,727 7,567 2,503 Chicago 21 3,569 3,718 2,770 Kansas City 4,964 5,967 4,095 St. Louis ._- 5 724 688 647 Dallas 6,924 7,696 3,548 Minneapolis 9 465 465 454 Kansas City _._ 15 810 779 663 Total (11 districts) 134, 446 131,414 77,172 Dallas 10 434 434 352 San Francisco... 18 1,869 1,972 1,673 Total 141 28, 757 31, 231 25, 486 COMMERCIAL FAILURES, BY DISTRICTS [Amounts in thousands of dollars; figures reported by Dun & Bradstreet] Number Liabilities Federal Reserve district 1934 1933 1934 1933 May April May May April ] May Boston 97 100 214 1,397 1,871 3,925 New York 326 249 476 7,562 8,811 11, 641 Philadelphia... 36 44 87 2,118 2,055 2,848 Cleveland 73 92 145 3,534 3,328 6, 620 Richmond 64 59 124 1,707 672 3,876 Atlanta 19 76 90 181 1, 016 2,571 Chicago 115 153 249 1, 769 4,242 i 7,228 St. Louis 22 24 59 218 306 1,414 Minneapolis. _. 24 36 54 442 404 I 755 Kansas City... 32 33 92 851 261 1, 595 Dallas 18 31 63 166 426 1,297 San Francisco.. 151 155 256 2,617 2, 396 4,201 Total.. ....! 977 1,0521,909 | 22, 561 ! 25, 787 47, 972 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE DISTRICTS ARK. Liltle*Rock/ ( •—»BOUNDARIES OF FEDERAL RESERVE DISTRICTS -—BOUNDARIES OF FEDERAL RESERVE BRANCH TERRITORIES ® FEDERAL RESERVE BANK CITIES • FEDERAL RESERVE BRANCH CITIES O FEDERAL RESERVE BANK AGENCY O Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis