Federal Reserve Bulletin, 1934-10

FEDERAL RESERVE BULLETIN OCTOBER 1934 ISSUED BY THE FEDERAL RESERVE BOARD AT WASHINGTON Regulations Under Securities Exchange Act National Summary of Business Conditions Bank of Canada Act 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: , Governor. HENRY MORGENTHAU, Jr., J. J. THOMAS, Vice Governor. Secretary of the Treasury, Chairman, CHARLES S. HAMLIN. J. F. T. O'CONNOR, ADOLPH C. MILLER. Comptroller of the Currency. GEORGE R. JAMES. M. S. SZYMCZAK. H. WARNER MARTIN, Assistant to the Governor. E. A. GOLDENWEISER, Director, Division of Research CHESTER MORRILL, Secretary. and Statistics. J. C. NOELL, Assistant Secretary. CARL E. PARRY, Assistant Director, Division of Research L. P. BETHEA, Assistant Secretary. and Statistics, 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 II Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OFFICERS OF FEDERAL RESERVE BANKS Federal R of e — serve Bank Chairman Governor Deputy governor Cashier Boston.- F H. Curtiss R. A. Young _. W. W. Paddock W. Willett. New York J. H Case G. L. Harrison W. R. Burgess J. W. Jones.i J. E. Crane W. B. Matteson.i W. S. Logan.-- — J. M. Rice.i L. R. Rounds Allan Sproul.3 L. F. Sailer H. H. Kimball 1 C. H. Coe L. W. Knoke.i Philadelphia - R. L. Austin G. W. Norris W. H. Hutt C. A. Mcllhenny. J. S. Sinclair W. J. Davis.i C. A. Mcllhenny L. E. Donaldson.i W. G. McCreedy.2 Cleveland _.. L. B. Williams E. R. Fancher M. J. Fleming H. F. Strater. F. J. Zurlinden Richmond _-. W. W. Hoxton - G. J. Seay C. A. Peple G. H. Keesee. R. H. Broaddus J. S. Walden, Jr.* Atlanta _ _- Oscar Newton E. R. Black W. S. Johns M. W. Bell. H. F. ConnifiL- W. S. McLarin, Jr.* Chicago E. M. Stevens G. J. Schaller ___. C. R. McKay W. H. Snyder.2 H. P. Preston W. C. Bachman.i J. H. Dillard- O.J. Netterstrom.i AT. Sihler.i E. A. Delaney.i A. L. Olson.i St. Louis J. S. Wood. . . - W. McC. Martin 0. M. Attebery S. F. Gilmore.2 J. G. McConkey A. H. Haill.2 F. N. Hall.2 G. 0. Hollocher.s 0. C. Phillips.2 Minneapolis J. N. Peyton W. B. Geery Harry Yaeger H. I. Ziemer. H. I. Ziemer F. C Dunlop.2 Kansas City M. L. McClure - G. H. Hamilton C. A. Worthington.— J. W. Helm. J. W. Helm Dallas C.C.Walsh B. A. McKinney R. R. Gilbert Fred Harris. R. B. Coleman _. W. 0. Ford.i San Francisco _ J. U. Calkins W. A. Day W. M. Hale. Ira Clerk i Assistant deputy governor. 2 Controller. * 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. Denver branch J. E. Olson. Pittsburgh branch Oklahoma City branch. C. E. Daniel. Richmond: Omaha branch L. H. Earhart. B altimore branch. Hugh Leach. Dallas: Charlotte branch... W. T. Clements. El Paso branch J. L. Hermann. Atlanta: Houston branch W. D. Gentry. Birmingham branch J. H Frye. San Antonio branch M. Crump. Jacksonville branch Hugh Foster. San Francisco: Nashville branch J. B. Fort, Jr. Los Angeles branch W. N. Ambrose. New Orleans branch Marcus Walker. Portland branch R. B. West. Chicago: Salt Lake City branch W. L. Partner. Detroit branch R. H. Buss. Seattle branch C. R. Shaw. St. Louis: Spokane branch D. L. Davis. Little Rock branch A. F. Bailey. Louisville branch J. T. Moore. Memphis branch W. H. Glasgow. 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 Paee Review of the month—Regulations under the Securities Exchange Act 629 An act to incorporate the Bank of Canada 653 Cuban currency legislation ' 660 Branches maintained, by class of bank, December 31, 1931, 1932, and 1933 699-701 Number of licensed banks and of insured banks, September 1, 1934 702 National summary of business conditions 635 Financial, industrial, and commercial statistics: Reserve bank credit, gold stock, money in circulation, etc 636-640 Member and nonmember bank credit: All banks in the United States 643 All member banks 641, 642, 695, 698 Weekly reporting member banks in leading cities 644, 696 Brokers' loans 644 Acceptances and commercial paper 645 Discount rates and money rates 646 Treasury finance 647 Assets and liabilities of governmental credit agencies July 31, 1934 648 Reconstruction Finance Corporation—Loans, subscriptions, and allocations 649 Security prices, bond yields, and security issues 650 Production, employment, car loadings, and commodity prices 651 Merchandise exports and imports 652 Department stores—Indexes of sales and stocks 652 Freight-car loadings, by classes 652 Financial statistics for foreign countries: Gold reserves of central banks and governments 662 Gold production 663 Gold movements 663-665 Government note issues and reserves 666 Bank for International Settlements 666 Central banks 667-669 Commercial banks 670 Discount rates of central banks 671 Money rates 671 Foreign exchange rates 672 Price movements: Wholesale prices 673 Retail food prices and cost of living 674 Security prices 674 Law department: Rulings of the Federal Reserve Board: Investment banking firm as financing institution within meaning of section 13b of Federal Reserve Act 675 Discount for financingi nstitution of obligation of established business located in another Federal Reserve district 675 Rulings nos. 1-25 interpreting Regulation T 686-692 Regulation T of Federal Reserve Board 675 Federal Reserve statistics by districts, etc.: Banking and financial statistics 693-698 Industrial and commercial statistics 703-708 September crop report 709 IV Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN VOL. 20 OCTOBER 1934 No. 10 REVIEW OF THE MONTH Advances approved by the Federal Reserve Member bank reserve balances declined banks for the purpose of supplying working capital to industrial and comsharply at the beginning of September and Industrial admercial establishments, tocontinued during the month at vances Member bank gether with commitments to a lower level than in August. credit make such advances, numbered 234 and The decrease reflected princitotaled $10,084,000 up to October 3, 1934. pally a seasonal growth in demand for currency Of this total $2,490,000 represented advances and an increase in the volume of United States and $1,633,000 commitments actually made, Government deposits at the Reserve banks. $5,799,000 advances and commitments that had Toward the close of the month reserves of the been approved unconditionally by the Federal member banks were about $1,750,000,000 in Reserve banks but had not yet been consumexcess of legal requirements, compared with mated, and the balance applications withdrawn $1,900,000,000 in the latter part of August. after approval. An additional 133 industrial There was little change in the volume of advances totaling $6,125,000 had been approved Reserve bank credit outstanding during the by the Federal Reserve banks subject to the month. fulfillment of certain conditions. Advances and Total loans and investments of member commitments approved by the Industrial banks in leading cities continued to increase Advisory Committees, counting both condiduring September. Between August 29 and tional and unconditional approvals, and in- September 26 there was a growth of $158,000,cluding those still under consideration by the 000 in loans other than loans on securities, Reserve banks, totaled $22,800,000 up to making a total increase of $274,000,000 since October 3. the middle of July. This increase, which was The Federal Reserve Board, acting in accordlarger than usual at this season, represented in ance with the requirements of the Securities part larger credit requirements for marketing Regulations under Exchange Act of 1934, on crops at higher prices. Loans on securities Securities Ex- September 27 issued a reguladeclined further by $167,000,000. Investments changeAct _ tion (Regulation T) with re increased by $90,000,000. Net demand deposspect to the extension and maintenance of its of reporting banks showed an increase of credit on securities. This regulation prescribes $186,000,000 during September, following a rules regarding the amount of credit on secusimilar increase in August. Most of the growth rities that may be initially extended and in deposits occurred at banks outside New subsequently maintained for customers by York City, and represented in considerable brokers and dealers in securities. The regulapart the deposit for private account of funds tion places no restrictions on loans for induspaid out of Government deposits. trial, agricultural, or commercial purposes, nor 629 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

630 FEDERAL RESERVE BULLETIN OCTOBER 1934 does it apply to loans by banks. Restrictions The regulation fixes a maximum loan value to be imposed under the Securities Exchange of 80 percent of current market value on a loan Act of 1934 on security loans by banks are or extension of credit made on securities to being studied by the Board in connection with any other member, broker, or dealer subject other laws regulating the activities of banks, to the regulation, if the loan or extension and regulations on the subject will be issued of credit is for the purpose of enabling the by the Board at a later date. borrower to carry accounts for his customers. Regulation T, which is published elsewhere Loans to dealers and syndicates for the purpose in this issue of the BULLETIN, became effective, of distributing security issues may be made as prescribed in the act, on October 1. In under the 80-percent rule. Loans to brokers order, however, that persons affected might and dealers to finance partners' and firm have additional time to familiarize themselves accounts are subject to the same margin rewith its provisions, the Securities and Exchange quirements as are extensions of credit to cus- Commission, at the request of the Federal tomers. If exempted securities are mingled in Reserve Board, exercised its power to exempt the same account with other securities, the securities until October 15 from the pertinent exempted securities may be counted as collatsections of the Securities Exchange Act. eral up to their full market value. In prescribing margin requirements the Under the Securities Exchange Act credit Board has adopted the basis stated in the may not be extended by brokers and dealers Securities Exchange Act and against securities that are not registered (except Margin require- . , ,-. , .,, , . ments s ru*e (* 1 that, with certain exempted securities), if the credit is for the purpose of purchasing or carrying securities, but exceptions, a member of a Regulation T permits brokers to retain such national securities exchange or a broker or a securities or to take them as additional collatdealer subject to the regulation shall not make eral against credits previously extended. any initial extension of credit to any customer on any registered security (other than an The Securities Exchange Act specifically exempted security) for the purpose of purchas- exempts from its provisions all obligations of ing or carrying any security, in an amount the United States Government, which causes the total credit extended on such securities °^ an^ State or municipal or registered security to exceed whichever is the other political subdivision, and higher of: of agencies or instrumentalities of a State or (1) 55 percent of the current market local government. Obligations guaranteed as value of the security; or to principal or interest by the Federal or local (2) 100 percent of the lowest market Governments are also exempted. In addition, value of the security computed at the the Securities and Exchange Commission has lowest market price therefor during the authority to exempt other securities either unperiod of 36 calendar months immediately conditionally or upon specified conditions, and prior to the first day of the current month, the Secretary of the Treasury to exempt such but not more than 75 percent of the current securities issued or guaranteed by corporations market value: Provided, That until July 1, in which the United States has a direct or in- 1936, for the purpose of this regulation the direct interest as may be necessary or approlowest price at which a security has sold priate in the public interest. Under this on or after July 1, 1933, but prior to the authority the Secretary of the Treasury has first day of the current month, shall be designated as exempted securities farm loan considered as the lowest market price of bonds issued by the Federal land banks and such security during the preceding 36 debentures issued by the Federal intermediate calendar months. credit banks under the authority of the Fed- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

631 OCTOBER 1934 FEDERAL RESERVE BULLETIN eral Farm Loan Act. Obligations of the Fed- used as margins for further speculation, a eral Farm Mortgage Corporation and of the practice that is known as pyramiding. Home Owners' Loan Corporation, being guar- In order to ascertain the amount of credit that anteed by the United States Government, are may be extended by a broker, the regulation exempt by the terms of the act. prescribes a method to be used Although the basis for establishing margin R ex u t le e s n s g i o o v n er ni o n f g b J ^ , . bn)ker , [n calculating ° requirements is stated in the law, the Board is irom his records an 'adjusted given authority to prescribe credit debit balance", which makes such lower or higher requireallowance for margins held against short sales, scnbed standard ments as prevailing conditions future commitments, and other transactions may indicate The general principle laid made for a customer. In an account that is down in this connection in the law is that the adequately margined the adjusted debit bal- Board shall prescribe rules and regulations with ance does not exceed the maximum loan value respect to margin requirements "for the purof the securities in the account. An account pose of preventing the excessive use of credit in which this condition exists is called an for the purchase or carrying of securities". In "unrestricted account77, and a broker may the light of existing circumstances the Board permit any transaction to be made by or for a decided to adopt for the present the standard customer in such an account, unless the transof margin requirements prescribed in the act. action would cause the margin in the account This standard permits the extension of credit to fall below the standard prescribed, thereby of as much as 75 percent of market value on making the account a "restricted account77. securities that have had little or no advance The regulation provides methods of ascerfrom their recent lows and of 55 percent of taining current market prices that must be market value on securities that have advanced used in determining market values and maximost rapidly; permissible loans for other securi- mum loan values. In general, securities in an ties, being limited in each case to 100 percent account at the beginning of any given day are of the lowest price of the security since July valued at closing prices of the preceding day, 1, 1933, fall within the range between 55 and while securities purchased or sold during the 75 percent of current market value. At the day are valued at the prices at which they are present level of security prices, credit may be purchased or sold. For the determination of extended on most securities up to 75 percent of the lowest value of a security since July 1933 their market value. If a substantial increase in rules are prescribed that make these figures, security prices should occur, however, the which enter into the calculation of maximum loan average margin requirement would automat- value of a security, change not more frequently ically increase, since the loan value of an increas- than once a month, and they need notbe changed ing proportion of outstanding securities would until after the seventh day of each month. be less than 75 percent of market value. Whenever additional margin is needed to The standard of margin requirements stated comply with the regulation, a broker is allowed in the law and now prescribed by the Federal three business days from the date of the trans- Reserve Board is designed to exert a restrain- action giving rise to the need in which to obtain ing influence on speculative trading. By im- such margin; and, if he makes a demand for it, posing higher margin requirements on securities he is permitted to credit the amount required that have had a rapid rise than on more stable and demanded to the customer's account in securities, the prescribed requirements make aclculating the adjusted debit balance of the credit less freely available for trading in specu- account. An account which is unrestricted at lative stocks. It also limits the extent to the beginning of the day, i.e., has an adjusted which speculative profits on securities can be debit balance no greater than the maximum Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

632 FEDERAL RESERVE BULLETIN OCTOBER 1934 loan value of the securities in the account, tension will be subject to restrictions. Nothing remains unrestricted throughout the day, and in the act or in the regulations prevents any regardless of transactions made during the day exchange or any creditor from making stricter may continue unrestricted if any additional rules regarding margins to be held or transacmargin required is demanded by the broker. tions that may be permitted. The margin thus demanded must be obtained Accounts in existence on October 1, 1934, within three days, unless the account is other- may be recorded separately by the creditor at wise brought into conformity with the regu- any time prior to November 15, 1934, and lation. thereafter may be maintained until liquidated Regulation T does not prescribe a specific or until July 1, 1937, without requiring the margin that must be maintained after a loan margins prescribed by Regulation T. In order has been granted, but imposes to prevent circumvention of the margin rules, °f restrictions on the operations however, no new transactions which would which the customer may carry result in an increase in the adjusted debit on in his account if his margin falls below the balance or in the amount by which the account standard prescribed for initial extension of is undermargined may be made in these accredit. In such a case the account is called a counts. Excess margin may be withdrawn "restricted account." The amount of credit from these old accounts and customers may maintained in an account, whether restricted open other accounts for trading purposes with or unrestricted, is not required by the regula- the same broker. tion to be reduced as a consequence of a decline In addition to the rules governing initial in the market value of the securities held but, extension and maintenance of credit on regisin order to prevent circumvention of the tered securities, the Securities Other rules initial credit rules, the broker is not allowed to Exchange Act authorizes the permit in an unrestricted account any trans- Federal Reserve Board to prescribe rules peraction which would cause the account to mitting brokers and dealers subject to the act become a restricted account. If an account to make loans or extend credit of other kinds. is a restricted account or becomes so by reason The regulation permits loans by brokers and of a decline in the market, the broker may dealers in securities for bona fide commercial, permit only such transactions in that account industrial, or other purposes, except the puras will not result either in a net withdrawal chase or carrying of securities, provided the of cash or securities or in an increase in the creditor obtains a written declaration from the amount by which the margin held is below borrower stating the purpose of the loan, and that required. This rule governs purchases, has no reason to believe that the declaration sales, withdrawals of money and securities, is false. substitutions, short sales, and other transac- Under section 8 of the Securities Exchange tions. In effect, it permits a new extension of Act brokers and dealers subject to the act may credit in a restricted account if sufficient addi- not borrow on registered securities (other than tional margin is supplied for the new extension exempted securities) from others than member in itself, but prohibits withdrawals except banks except under certain conditions to be under specified conditions, unless additional prescribed by the Board. Regulation T premargin is supplied in an amount sufficient to scribes an agreement which nonmember banks make the whole account unrestricted. must sign before brokers and dealers will be These rules of maintenance would not exert permitted to borrow from them. Membesr of pressure for the liquidation of securities conse- registered securities exchanges and other brokquent upon a decline in market prices, but ers and dealers subject to the act are also trading by customers with accounts which do permitted to borrow from each other under not conform to the margin rules for initial ex- specified conditions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 1934 FEDERAL RESERVE BULLETIN 633 Rules are also included regarding the borrow- In view of the fact that the prescribed margin ing and lending of securities, the debiting of requirements are not based upon a fixed perinterest, commissions, etc., the handling of centage of margin for all securguaranteed accounts, the transfer of accounts, Probable effect [^[ es ]y U ^ ca jj f or ma rgins varyof new requiretemporary credit for clearance of securities, ments ing irom a minimum of 25 adjustments for innocent mistakes, and trans- percent to a maximum of 45 actions outside the United States. percent on different securities, depending on In preparation for the adoption of margin whether they have had a rapid rise in price or requirements the Board made a survey of the not, other data were needed to indicate the prevailing conditions in regard probable effect of the new requirements upon Sf t0 outstanding securities and existing accounts. Accordingly, members of accounts with brokers. At the the three exchanges mentioned above were request of the Board the New York, Chicago, requested to report the amount of each indiand San Francisco Stock Exchanges obtained vidual security held in customers' accounts reports from their members as of July 31, 1934, with debit balances and in partners7 and firms' to determine the relation between the value of accounts. The reports covered some 20,000 the collateral and the amount of loans in cus- different issues with total market value estitomers7 margin accounts. The reports did not mated at about $2,600,000,000. Detailed analcover short sales and excluded accounts with ysis was made of the holdings by members of commodity commitments. Accounts contain- the New York Stock Exchange of 1,233 issues ing over two-thirds of all customers' borrowings of stocks and bonds listed on that exchange were reported. and on the New York Curb Exchnage, includ- These returns, which are summarized in the ing all holdings of common stocks listed on the following table, show that a large number of New York Stock Exchange. These holdings accounts were substantially over-margined at had a market value of about $2,100,000,000, or that time. The value of the securities held in about four-fifths of the total estimated value all the accounts was nearly twice as large as the of all securities held. The analysis is shown in amount borrowed on the securities, that is to the following table: say, borrowings were equal to about one-half of the value of the securities carried. MAXIMUM LOAN VALUE OF SELECTED SECURITIES 1 HELD BY BROKERS AS OF JULY 31, 1934 STATUS OF CUSTOMERS' MARGIN ACCOUNTS WITH (New York Stock Exchange members) BROKERS AS OF JULY 31, 1934 (New York, Chicago, and San Francisco Stock Exchanges) Maximum loan Market value c N o p o u u o f m n r t t a e b s c d e - r r e- b ( s i a a D n n l a e t d n h b s c o it o e u s f - s ( s v M i e a n a c n a l u t u d r h r e s k i o t e o o i u t e f f - s N of u i m ssu b e e s r d ( l i i v n o o a l n l l a s u m r o e s il f ) - l I d i n o o n ll s m a o r il s f - k P o e e f t r v m c a e a l n u r t - e dollars) dollars) Securities with a maximum loan Accounts with debit balances of more value of: than $5,000, having a ratio of debit 75 percent of market 733 1,445 1,084 75.0 balance to value of securities of: 100 percent of recent low 348 508 343 67.6 Less than 50 percent— 7,507 152,676 499,292 55 percent of market . 152 147 81 55.0 50 to 66% percent - 10,302 227,210 382,875 66% to 75 percent 6,711 188,506 264,829 Total 1,233 2,100 1,508 71.8 More than 75 percent 4,876 144,059 158,187 Total large accounts 29,396 712,451 1,305,183 i Includes only securities listed on New York Stock Exchange and New York Curb Exchange; 993 issues of stocks with market value of $1,997,- Accounts with debit balances of $5,000 000,000 and 240 issues of bonds with market value of $103,000,000. or less, having a ratio of debit balance to value of securities of: Less than 50 percent—- 109,097 77, 224 310,395 From these figures it would appear that in 50 to 66% percent 55,083 72,199 124,068 66% to 75 percent 11,659 18,479 26,457 terms of market values over two-thirds of the More than 75 percent—- 7,754 10,970 11,645 securities held by brokers for their customers Total small accounts _. 183, 593 178,872 472, 565 Total all accounts 212,989 891,323 1, 777, 748 on July 31 could be carried with a maximum Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

634 FEDERAL RESERVE BULLETIN OCTOBER 1934 loan of 75 percent of market value, about one- reports to the Board as it may require. These fourth permitted loans of percentages varying reports will be used by the Board for the purfrom 55 to 75 percent and averaging 67.6 pose of keeping currently informed concerning percent of market value, and the remainder the use of credit in the securities market. had a maximum loan value of 55 percent of market value. The average maximum loan value on all these securities was slightly under Changes in Foreign Central Bank Discount Rates 72 percent. This compares with a maximum The following changes in discount rates darpercentage permitted by the New York Stock ing the month ending October 1 have been Exchange of about 77 percent for large accounts reported by central banks in foreign countries: and 66% percent for small accounts, averaging Bank of Danzig—September 21, up from 3 to 4 about 75 percent for all accounts. percent. Bank of Estonia—October 1, down from 5% to 5 The regulation issued by the Board provides percent. that brokers and dealers and Reports other persons making loans subject to the provisions of the act shall make such Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 1934 FEDERAL RESERVE BULLETIN 635 NATIONAL SUMMARY OF BUSINESS CONDITIONS [Compiled September 26 and released for publication September 28] Total output of industry, which usually Distribution.—Volume of freight-car loadincreases at this season, showed little change in ings, which usually increases at this season, August. Factory employment and pay rolls showed little change in August. Shipments of increased between the middle of July and the miscellaneous freight showed no seasonal exmiddle of August by about the usual seasonal pansion, while shipments of livestock increased amount. Distribution of commodities at de- considerably. Department-store sales inpartment stores showed a more than seasonal creased by an amount substantially larger growth. than is usual in August and were 2 percent Production and employment.—Output of higher than a year ago. basic industrial products, as measured by the Commodity prices.—Wholesale prices of com- Board's index, which makes allowance for usual modities increased in August and the first seasonal changes, declined from 75 percent of week of September, reflecting sharp advances the 1923-25 average in July to 73 percent in in the prices of farm products and foods. Hog August. At steel mills production continued prices advanced rapidly during the month of to decline during August and the early part of August, and in the latter part of the month September, contrary to seasonal tendency; in cattle prices also showed a marked increase. the middle of September a slight increase in Since the beginning of September, prices for activity was reported. Output of automobiles, both hogs and cattle have declined somewhat, which had been maintained at a relatively high and in the middle of the month there have rate during the spring and early summer, de- also been decreases in the prices of wheat and clined in August. Lumber production showed cotton. In August, as in other recent months, an increase. In the cotton textile industry there was little change in prices of commodities production was in larger volume in August than other than farm products and foods. in July, but was retarded by the strike in the Bank credit.—A seasonal increase in demand first 3 weeks of September. At meat- for currency by the public and an increase in packing establishments output in August was Government deposits at the Reserve banks larger than in any other recent month, accom- were reflected in a decline in member bank panying heavy marketings of cattle from reserve balances between the middle of August drought areas. and the middle of September. On September Factory employment showed a seasonal in- 19 reserve balances were about $1,700,000,000 crease between the middle of July and the in excess of legal requirements. There was middle of August, reflecting considerable little change in the volume of reserve bank growth in employment in the wearing apparel, credit during August and September. canning, and meat-packing industries, while Total loans and investments of reporting employment in the iron and steel industries and member banks showed little change between at railroad repair shops declined. August 15 and September 19; loans, other than The value of construction contracts awarded, security loans, increased by $170,000,000 and as reported by the F. W. Dodge Corporation, holdings of securities by $50,000,000, while was about the same in August as in each of security loans declined by $200,000,000. The the four preceding months. increase in loans other than on securities Department of Agriculture estimates as of occurred largely at banks in New York City September 1 indicate a corn crop 40 percent and in the western districts and reflected smaller than the average for the 5 years chiefly a growth in direct loans to customers 1927-31, and other feed crops also are expected for ordinary commercial purposes and for to be unusually small. The condition of pas- financing the harvesting of crops. The banks' tures on September 1 was poorer than in any holdings of acceptances and commercial paper, other recent year, but some improvement has which also reflect current business financing, been reported in the early part of September. increased during the period. The spring wheat crop, estimated at 93,000,000 Short-term money rates continued at low bushels, is about one-third of the 5-year levels. Yields on both United States Governaverage, and the winter wheat crop is also ment and corporate bonds increased during small. The cotton crop is estimated at August and the first half of September. 9,300,000 bales, a sharp reduction from other recent years. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

636 FEDERAL RESERVE BULLETIN OCTOBER 1934 RESERVE BANK CREDIT AND RELATED ITEMS MILLIONS OF DOLLARS Weekly basis: Wednesday series MILLIONS OF DOLLARS 6000 6000 7000 7000 6000 6000 5000 5000 4000 4000 3000 3000 MEMBER BANK RESERVE BALANCES 2000 2000 1000 1000 TREASURY CASH 3c DEPOSITS WITH F. R. BANKS 1929 1930 1931 1932 1933 1934 Based on Wednesday figures; latest figures are for September 26. See table on page 637. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

637 OCTOBER 1934 FEDERAL RESERVE BULLETIN FEDERAL RESERVE BANK CREDIT RESERVE BANK CREDIT AND RELATED ITEMS (WEDNESDAY SERIES) [In millions of dollars] Reserve bauk credit outstanding Treasury Date (Wednesday) B co il u ls n d te 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 s r 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 ;o o ld n e st t o a c ry k T na r r b e t e c a i a a n u n o n s r c d n u k - y a r l y - M c o i t r n i c o e u n y la i - n b M b a a s l e e n a m r k n v c b r e e e e s - r c d R F a b e e e s w p a h d s n i o e e t a k s r h r n v i s a t e d l s b m N er e o m n d - - e- R F c O e o e a s t d u c h e e - n r e r t v r s a e l 1933—Aug. 2- 164 2,038 -1 2,208 '4,033 2,281 ' 5, 331 2,319 188 350 Aug. 9.. 156 2, 048 2,220 ' 4,033 2, 281 ' 5, 321 2,376 292 195 350 Aug. ]6. 166 7 2,059 2,240 ' 4,034 2,281 ' 5,325 2,371 315 197 347 Aug. 23_ 150 7 2,094 2,258 ' 4, 041 2,280 '5,305 2,432 319 175 348 Aug. 30. 153 7 2,129 2,298 ' 4,041 2,281 ' 5, 305 2,427 339 202 347 Sept. 6. 145 7 2,166 12 2,330 '4,041 2,280 ' 5,361 2,439 327 178 346 Sept. 13 133 7 2,203 14 2,357 ' 4,039 2,281 ' 5,315 2,542 317 157 346 Sept. 20 130 7 2,238 13 2,388 ' 4,039 2,280 ' 5,318 2,543 334 164 348 Sept. 27 133 7 2,274 7 2,421 ' 4,037 2,279 ' 5,307 2, 596 331 156 347 Oct. 4.. 123 7 2,309 10 2,449 ' 4,037 2,279 ' 5, 365 2,523 372 159 346 Oct. 11. 119 7 2,344 7 2,477 ' 4,037 2,278 ' 5,386 2,567 338 155 345 Oct. 18. 113 7 2,375 18 2,513 ' 4,036 2,277 ' 5,363 2,655 284 166 358 Oct. 25. 115 7 2,400 5 2,526 ' 4,036 2,277 ' 5, 321 2,693 302 167 357 Nov. 1- 117 7 2,420 7 2,550 ' 4, 036 2,276 r 5, 353 2,591 388 178 353 Nov. 8- 112 7 2,430 -7 2,542 ' 4,036 2, 275 2,578 373 161 355 Nov. 15 111 15 2,432 6 2,564 ' 4,036 2,275 ' 5,368 2,645 345 163 355 Nov. 22. 112 20 2,431 -1 2,562 ' 4, 036 2,276 ' 5, 366 2,687 316 149 355 Nov. 29. 119 24 2,432 7 2,581 ' 4,036 2,277 ' 5, 455 2,573 142 354 Dec. 6__ 116 61 2,131 7 2, 615 ' 4,036 2,277 ' 5,471 2,561 156 354 Dec. 13. 118 116 2,432 11 2,677 ' 4,036 2,295 ' 5,476 2, 638 379 160 355 Dec. 20. 115 113 2,432 25 2,686 ' 4,036 2,299 ' 5,561 2,636 329 132 362 Dec. 27. 111 111 2,432 20 2,674 ' 4,036 2,304 ' 5, 537 2,675 315 124 362 1934—Jan. 3_. 106 121 2,432 29 ' 4,036 2,303 ' 5, 504 2,710 311 145 357 Jan. 10. 104 113 2,432 7 2,655 ' 4,036 2,302 ' 5,397 2,777 353 172 295 Jan. 17. 101 112 2,432 1 2,646 ' 4,035 2,302 ' 5, 356 2,788 407 143 288 Jan. 24. 97 104 2,432 -2 2,631 '4,035 2,301 ' 5,294 2,851 398 137 287 Jan. 31. 83 111 2,434 2 2,630 1 4,033 2,302 1 5,289 2,652 597 141 287 Feb. 7__ 73 97 2,432 4 2,606 2 7, 036 2,301 5,317 2,736 2 3, 449 142 299 Feb. 14. 68 86 2,432 7 2,593 7,089 2,301 5,321 2,851 3,391 130 290 Feb. 21. 66 75 2,432 18 2,592 7,203 2,301 5,344 2,830 3,499 132 291 Feb. 28.. 64 62 2,432 2,567 7,438 2,302 5, 355 3,093 3,440 127 292 Mar. 7.. 59 46 2,432 2,539 7,556 2,312 5,374 3,313 3,294 133 294 Mar. 14. 55 37 2,432 2,532 7,605 2,332 5,345 3,454 3,226 143 301 Mar. 21. 51 33 2,432 2,508 7,640 2,343 5,334 3,449 3,252 154 302 Mar. 28. 53 29 2,432 2,519 7,681 2,356 5,336 3,439 3,318 161 303 Apr. 4__ 48 26 2,432 2,509 7,703 2,369 5,371 3,450 3,323 140 297 Apr. 11. 43 17 2,432 2,492 7,732 2,381 5,347 3,560 148 312 Apr. 18. 40 13 2,430 2,493 7,746 2,381 5,347 3, 665 3,204 167 237 Apr. 25. 40 10 2,430 2,486 7,755 2,380 5,324 3,744 3,148 167 237 May 2.. 38 2,432 2,484 7,756 2,381 5,359 3,570 3,177 280 235 May 9__ 37 2,432 9 2,484 7,756 2,380 5,352 3,678 3,098 257 235 May 16. 34 2,430 3 2,473 7,753 2,380 5,344 3,694 3,082 252 233 May 23. 34 2,430 -1 2,469 7,766 2,375 5,316 3,767 3,052 242 233 May 30. 34 2,430 1 2,470 7,776 2,371 5,338 3,763 3,051 233 232 June 6__ 29 2,430 2,475 7,790 2,365 5,342 3,787 3,034 230 237 June 13. 28 2,430 2,472 7,820 2,361 5,313 3,895 2,956 251 238 June 20. 28 2,430 2,468 7,835 2,359 5,310 3,769 3,121 224 239 June 27_ 27 2,430 2,465 7,846 2,364 5,301 3,837 3,077 225 236 July 3- 29 2,432 2,488 7,866 2,365 5,397 3,746 3,113 232 230 July 11. 23 2,432 2,468 7,881 2,365 5,344 3,902 3,014 223 231 July 18. 23 2,432 2,460 7,897 2,363 5,328 3,987 2,954 222 229 July 25. 21 2,432 2,456 7,911 2,364 5,291 4,020 2,972 220 228 Aug. 1- 21 2,432 2,463 7,932 2,361 5,315 3,915 3,074 219 232 Aug. 8~ 21 2,432 2,458 7,957 2,357 5,334 4,059 2,941 209 229 Aug. 15. 20 2,431 2,468 7,979 2,375 5,343 4,064 2,976 211 228 Aug. 22. 20 2,432 2,457 7,983 2,390 5,347 4,072 2,972 211 228 Aug. 29. 21 2,432 2,463 7,981 2,403 5,345 4,127 2,944 204 226 Sept. 5_. 24 2,432 2,467 7,963 2,412 5,419 3,907 3,087 203 225 Sept. 12. 23 2,431 2,469 7,968 2,414 5,409 3,948 3,058 213 224 Sept. 19. 22 2,431 2,466 7,972 2,412 5,412 3,889 3,124 195 230 Sept. 26. 20 2,430 2,463 7,976 2,409 5,403 3,970 3,061 186 229 r Revised. Reduced by $287,000,000 (see footnote 1) for purposes of comparison with current figures. 1 Beginning Jan. 31,1934, "gold coin in circulation" (estimated for that date at $287,000,000) isexcluded from monetary gold stock and money in circulation; see p. 640. 2 By proclamation of the President dated Jan. 31, 1934, at 3:10 p.m., the weight of the gold dollar was reduced from 25*tfo grains to 35%i grains nine-tenths fine. The resulting increase in the value of the monetary gold stock, $2,806,000,000, 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." s 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

638 FEDERAL RESERVE BULLETIN OCTOBER 1934 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 s ll 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 s d n- r O e b s a t e h n r e v k r e Total ta M r s y t o o c n g k o e l - d T c a u t r n b i e r o d a r a n e n s n a n u k l a c r - - y y c M i u n l o a c n ti i e r o y - n M b r a e b e l s a a m e n n r b c v k e e e s r c d R F a e e w e s p h d s i o e e t s a r h r v i n a t e l s d b m p N e o r e o s m n d it e - s - - R F c O e e o a s d t u c h e e n - r e r t v r a s e l securities credit banks 1933—July 170 16 2,016 10 2,211 •" 4,032 2,283 r 5,388 2,268 347 179 344 August 159 8 2,064 2,239 ' 4, 035 2,280 ' 5, 329 2,375 316 186 349 September 138 7 2,202 2,358 r 4,040 2,280 r 5,344 2,489 328 169 347 October.. 119 7 2,355 2,492 r 4,036 2,277 r 5, 369 2,590 333 163 351 November 114 15 2,437 2,574 r 4,036 2,275 ' 5, 394 2,629 349 158 355 December 117 101 2,432 19 2,293 ' 5, 523 2,616 357 143 358 1934—January 101 113 2,432 2,656 ' 4,035 2,302 r 5,382 2,764 397 146 305 February 70 87 2,432 2,597 i 2 7,138 2,303 i 5, 339 2,822 2 3,448 136 293 March 55 40 2,437 2,535 7,602 2,333 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 6 2,431 2,479 7,759 2,378 5,355 3,695 3,083 249 234 June 28 5 2,424 2,464 7,821 2,363 5,341 3,790 3,054 226 237 July 23 5 2,432 2,469 7,893 2,364 5,350 3,928 2,999 219 230 August .... 21 5 2.432 2,464 7,971 2,378 5,355 4,045 2,976 208 228 September 22 5 2,431 2,469 7,971 2,412 5,428 3,947 3,054 197 227 Week ending Saturday June 2. 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 July 7 2,432 2,480 7,866 2,364 5,398 3,776 3,076 229 231 July 14 2,432 2,472 7,881 2,365 5,367 3,892 3,007 221 231 July 21 2,432 2,467 7,896 2,364 5,342 3,971 2,967 219 228 July 28. 2,432 2,461 7,913 2,364 5,310 4,019 2,967 214 228 Aug. 4 2,432 2,463 7,935 2,361 5,330 3,979 3,010 210 230 Aug. 11 2,432 2,464 7,961 2,360 5,349 4,020 2,979 208 229 Aug. 18 2,432 2,467 7,979 2,375 5,357 4,072 2,956 207 229 Aug. 25 2,432 2,461 7,982 2,390 5.361 4,073 2.982 210 227 Sept. 1 2,432 2,464 7,979 2,403 5,368 4,081 2,965 205 227 Sept. 8 2,432 2,470 7,967 2,413 5,423 3,951 3,047 204 225 Sept. 15 2,431 2,473 7,968 2,414 5,427 3,964 3,034 205 225 Sept. 22 2,431 2,469 7,972 2,412 5,430 3,920 3,080 193 229 Sept. 29 2,431 2,463 7,976 2,409 5,429 3,943 3,061 186 229 RESERVE BANK CREDIT AND RELATED ITEMS (END OF MONTH SERIES) [In millions of dollars] Reserve bank credit outstanding Treasury End of month co B d u i i n s l - l t s ed bo B u il g ls ht s G e U S c m o n u t v a e i r e t t i n e e t r t i n s d e - s r c O e b r s a t e e h n d r e v k i r t e Total ta M s ry t o o n c g k e o - ld T c a u t r n b i e r o d a r a n e n s a n n u k l c a r - y - y c M u in l o a c n t i i e r o - y n M b r a e b e l s a a m e n n r b v c k e e e s r c d R F a b e e w e s a p h d s n i o e e t k a s r h r v i n s a t e l s d b m p N e o e r o s m n d i - - t e s - R F c O e e o a s d t u c h e e n - r e r t v r a s e l 1933 July 167 9 2,028 6 2,209 r 4,033 2,281 »• 5,343 2,294 357 184 346 August . . 153 7 2,129 8 2,297 ' 4, 041 2,281 r 5,325 2,409 341 197 347 S O e c p to te b m er ber 1 1 2 1 8 6 7 7 2 2 , , 2 4 7 2 7 1 9 5 2 2, , 5 4 4 2 8 1 r r 4 4 , , 0 0 3 3 6 7 2 2 , , 2 2 7 7 8 7 r r 5 5 , , 3 3 6 4 3 7 2 2 , , 5 6 3 8 8 5 3 2 3 9 1 9 1 1 5 7 5 3 3 3 4 5 8 6 November. _. .. 119 24 * 2,432 7 2,581 ' 4, 036 2,277 r 5,455 2,573 369 142 354 December 98 133 2,437 20 2,688 ' 4,035 2,303 ' 5, 518 2,729 287 132 360 1934—January 83 111 2.434 2 2,630 i 4,033 2,302 i 5,289 2,652 597 141 287 February 64 62 2,432 8 2,567 2 7,438 2,302 5,355 3,093 2 3,440 127 292 March 54 29 2,447 15 2,545 7,694 2,361 5,394 3,457 3,293 157 299 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 5,373 3,840 3,016 233 233 July 22 5 2,432 3 2,462 7,930 2,361 5,317 4,029 2,971 207 229 August 23 5 2,432 4 2,464 7,978 2,408 5,396 4,052 2,968 208 226 September 15 6 2.431 11 2,464 ' 7,978 P 2, 405 v 5,456 3,934 * 3, 050 178 228 r Revised. Reduced by $287,000,000 (see footnote 1) for purposes of comparison with current figures. Preliminary. 1 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. 640. 2 By proclamation of the President dated Jan. 31,1934, at 3:10 p. m., the weight of the gold dollar was reduced from 25 8/10 grains to 15 5/21 grains nine-tenths fine. The resulting increase in the value of the monetary gold stock, $2,806,000,000, was covered into the Treasury as a miscellaneous xeceipt and is reflected in an increase in the item "Treasury cash and deposits with Federal Reserve banks." 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

639 OCTOBER 1934 FEDERAL RESERVE BULLETIN ASSETS AND LIABILITIES OF FEDERAL RESERVE BANKS IN DETAIL; ALSO FEDERAL RESERVE NOTE STATEMENT AND FEDERAL RESERVE BANK NOTE STATEMENT [In thousands of dollars] Sept. 30, 1934 Aug. 31, 1934 Sept. 30,1933 ASSETS Gold certificates on hand and due from U.S. Treasury.. 4,958,653 4,977,212 956,303 Gold 2,598,808 Eedemption fund—Federal Reserve notes __ 21, 798 23,889 35, 773 Other cash _ _ 215,949 219,329 213,962 Total reserves 5,196,400 5, 220,430 3,804,846 Redemption fund—Federal Reserve bank notes. 2,186 2,112 10,045 Bills discounted: For member banks 15,285 22,935 127,350 For intermediate credit banks For nonmember banks, etc 72" 612 Total bills discounted. 15,349 23,007 127,962 Bills bought: Payable in dollars: Bought outright 121 141 853 Under resale agreement... Payable in foreign currencies.. ~5~ 691* ~5,~679" ~6~068 Total bills bought.. 5,812 5,220 6,921 Industrial advances 2,178 870 U.S. Government securities: Bought outright 2,430,186 2,430,216 2,276,768 Under resale agreement.. 1,000 1,600 74 Total U.S. Government securities __ 2,431,186 2,431,816 2, 276,842 Other reserve bank credit: Municipal warrants.. 327 356 1,837 Due from foreign banks 1,819 3,127 3,769 Reserve bank float (uncollected items in excess of deferred availability items) _ 7,026 i 275 3,311 Total Reserve bank credit outstanding _ 2,463,697 2,464,121 2,420, 642 Federal Reserve notes of other Reserve banks 20,364 16,333 18,139 Uncollected items not included in float 430, 783 384, 045 371,687 Bank premises 52,821 52, 787 54,554 All other assets 54,084 56,971 54,891 Total assets .-. ._ 8, 220, 335 8,196, 799 6, 734,804 LIABILITIES Federal Reserve notes: Held by other Federal Reserve banks. 20,364 16,333 18,139 Outside Federal Reserve banks 3,146, 702 3,117, 389 2,983, 623 Total notes in circulation 3,167, 066 3,133, 722 3,001, 762 Federal Reserve bank note circulation—net 30,379 31,930 154, 876 Deposits: Member bank—Reserve account 3,934,071 4,052, 312 2,537,619 United States Treasurer—General account. 144, 699 51, 288 56,179 Foreign bank 9,810 11,605 13, 504 Other deposits 168,168 196, 238 141, 000 Total deposits 4, 256, 748 4, 311, 533 2, 748,302 Deferred availability items 430, 783 384,045 371,687 Capital paid in 146, 781 146, 535 145,834 Surplus 138, 383 138,383 278,599 Reserve for contingencies _ 22,444 22,545 12,103 All other liabilities 27,751 28,106 21,641 Total liabilities 8, 220, 335 8,196, 799 6, 734,804 Contingent liability on bills purchased for foreign correspondents... 730 531 41,462 Commitments to make industrial advances 1,368 346 FEDERAL RESERVE NOTE STATEMENT Notes issued to Federal Reserve banks by Federal Reserve agents 3,430,049 3, 397,104 3, 242,433 Collateral held by agents as security for notes issued to bank: Gold certificates on hand and due from U.S. Treasury 3,173,416 3,133, 656 2,695,427 Eligible paper 9,299 12, 685 79, 588 U.S. Government securities 298,800 294,000 538, 200 Total collateral 3, 481, 515 3,440, 341 3,313, 215 FEDERAL RESERVE BANK NOTE STATEMENT Notes issued to Federal Reserve banks (outstanding) 41,699 43,125 180,140 Collateral pledged against outstanding notes: Discounted and purchased bills 2,093 47,474 48,474 207,674 U.S. Government securities --- - Total collateral.. 47,474 48,474 209,767 * Excess of deferred availability items over uncollected items. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

640 FEDERAL RESERVE BULLETIN OCTOBER 1934 ANALYSIS OF CHANGES IN MONETARY GOLD MOVEMENTS OF GOLD TO AND FROM STOCK UNITED STATES1 [In millions of dollars] [In thousands of dollars] Analysis of changes September August January-August Gold From or to— stock Month m at o o e n f n t d h I i n n s c t o r g e c o a k l s d e N im et p g o o r l t d fr N m o l m e e a a t r s k r e e e a i - r f O ac t t h o e r r s Belgium ImportsEx 2 p ,0 o 9 r 4 tsImpor 2 tsEx 1 p ,9 o 4 r 5 tsImp 1 o 5 r 4 tsExp 1, o 9 r 6 t 5 s England 950 23,580 707 486,730 6,366 France 17,748 6,443 11,681 197,726 12, 242 $l=25$io grains of gold 9Aofine; i.e., an Germany 1 147 4 147 ounce of fine gold=$20.67 Netherlands 500 212 75, 229 6,914 1932—Total (12 mo.).. 52.9 -446.2 457.5 41.6 Switzerland 12,656 Canada 561 22 8,215 15 64, 724 111 1933—March 3,995 -97.2 -22.1 -100.1 25.0 Central America 276 242 1,978 April 4,025 29.5 -10.0 33.7 5.7 Mexico 447 49 570 55 19,610 130 May 4,028 3.6 -21.1 22.1 2.6 Argentina 6 1 6 June 4,030 2.2 -3.2 3.5 1.9 Colombia 8 2,484 11, 728 July • 4,033 2.7 -83.9 84.5 2.1 Ecuador ._ 242 216 680 August • 4,041 7.5 -80.4 79.5 8.4 Peru 41 194 868 September. • 4,037 -3.8 -56.7 49.3 3.6 Uruguay __ October • 4,036 -0.7 -32.4 26.9 4.8 Venezuela 54 66 , 616 November.. 1 4,036 -0.8 0.6 0.1 Australia... 1 432 737 December- • 4,035 -0.5 -9.1 11.8 -3.1 British India 5,489 52,946 China and Hong Total (12mo.)_ -190.4 -173.5 -58.0 41.1 Kong 513 14, 660 . Dutch East Indies 672 1 7 1934—January 4,033 r_2.1 -2.8 12.2 '-11.6 Japan 7 4 $l=155Ai ou g n ra c i e n s o f o f f in g e o ld g o gA ld o = fi $ n 8 e 5 ; i.e., an A Ph ll i l o ip th p e i r n e c o I u sl n a t n ri d e s s . 2 - _ 9 5 3 1 3 2 884 1 1 , , 5 4 1 4 2 2 4 8 7 , , 1 4 0 6 1 5 5 M Fe a b r r c u h ary 7 7 , , 4 6 3 9 8 5 3,4 2 0 5 5 6 . . 0 8 4 2 5 3 2 7 . . 6 3 - 6 0 "8 .8 .7~ 2,8 2 8 0 3 . . 3 8 Total__ 3,585 22, 255 51,781 14, 556 956, 628 27,882 April. 7,757 61.5 54.7 -1.1 7.9 J J A M u u u l n a y g y e - ust 7 7 7 7 , , , , 8 9 7 9 7 5 7 3 9 6 8 1 7 4 2 7 7 4 7 2 . . . . 4 4 4 1 6 5 3 3 7 3 2 3 . . . . 2 7 3 6 -1 0 0 1 . . . . 1 0 6 5 -1 2 1 1 1 1 2 1 . . . . 6 4 2 5 $2 1 2 0. 6 W I 7 n i c a t l h u f i d s n e o e s m o a e u l l n e c x m e c o e f v p o e t r i m o J n a e s n n u t f s i a g r o u y f r e u 1 s n 9 3 r r e e 4 p p a r o n e r s d t e e $ n d 3 t 5 o c r a u i g s f t i i n o n m e o s o r u v d n a e c l s e u t i a n t t h i a o e ti n r o e s n a a f . t t e r r a . te of September »_. 7,978 -0.1 -18.7 2.4 16.2 Back figures.—See Annual Report for 1933 (tables 53 and 54). » Preliminary. »• Revised to allow for exclusion from monetary gold stock of $287,000,000 of gold coin previously reported in circulation. See table at bottom of page. i Gold released from earmark at Federal Reserve banks less gold placed under earmark (with allowance when necessary for changes in gold earmarked abroad for account of Federal Reserve banks). Back figures.—See Annual Report for 1933 (table 51). KINDS OF MONEY IN CIRCULATION [Money outside Treasury and Federal Reserve banks. In millions of dollars] I 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- d S 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 a y 8 e 9 s s - 0 s s i S d il u i v a b e r - r y M co in in or U S n n t o a i t t t e e e s s d T R n S e o d se t e e r r s v a e lR F n b e e o a s d e t n e e r k r s v a e l t n b i N o o a n n t a e - a k s l 1933—March ' 6,032 376 258 112 266 3,621 17 879 April ' 5, 716 323 360 255 112 261 3,362 50 915 May „. ' 5, 525 280 359 256 112 265 3,167 99 922 June '5,434 265 361 257 113 269 3,061 125 920 July— ' 5,343 252 365 258 113 275 2,974 129 914 August r 5,325 242 372 261 114 277 2,953 133 911 September.. ' 5,363 232 385 265 115 280 2,966 156 909 October ' 5,347 225 387 267 116 277 2,930 189 903 November.. ' 5,455 219 394 269 117 285 2,998 206 913 December™ r 5,518 213 407 272 117 286 3.044 208 918 1934—January i 5,289 178 391 267 116 283 2,894 202 927 February... * 5,354 167 399 270 117 289 2,949 194 938 March 15,394 161 403 272 118 289 3,005 178 936 April i 5,368 157 400 274 118 282 3,025 162 918 May i 5,357 153 402 277 120 279 3,038 151 906 June i 5,373 150 401 280 119 280 3,068 142 902 July i 5,317 146 399 280 121 277 3,044 133 885 August 15,396 143 438 282 122 274 3,103 125 878 September p. 1 5,456 140 285 122 274 3,131 119 870 p Preliminary figures. * Revised. Reduced by $287,000,000 (see footnote 1) for purposes of comparison with current figures. i 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. 697. Back figures.—See Annual Report for 1933 (table 56). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

641 OCTOBER 1934 FEDERAL RESERVE BULLETIN MEMBER BANK RESERVE BALANCES [In millions of dollars. Averages of daily figures. Figures are for licensed banks only] Reserves held Excess reserves Month or week T m o b t e a a m l n — k b s e a r ll Ne C w i ty Y o i rk r O e c s i t t e h i r e e v s r e "C b o a u n n k t s ry' T m b o a t e a n m l k — b s e a 2 r ll Ne C w i t Y y1 ork r O e c s i t t e h i r e e v s r e "C b o an u k n s t r a y" 1933—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 3,695 1.323 1,598 773 1, 623. 5 484.7 778.4 360.4 June 3,790 1,391 1,632 767 1, 684. 6 532.2 799.6 352.8 July 3, 928 1, 393 1,725 810 1, 789. 4 525. 7 874. 0 389. 7 August 4,045 1,509 1, 719 817 1, 883. 6 638.2 852.2 393.3 Week ending (Friday) : June 1 3,754 1,399 1,606 749 1, 673. 0 550.3 780.9 342.0 June 8 3,758 1,372 1,611 775 1, 668.0 518.5 783.9 366.0 June 15. 3,847 1,396 1,667 783 1, 742.0 528.3 828.2 386.0 June 22--. - 3,740 1,360 1,623 757 1, 645.0 505. 4 790.7 349.0 June 29 - 3,820 1,428 1,635 756 1, 721. 0 571.6 802.7 347.0 July 6... 3,777 1,339 1,644 794 1, 672. 0 476. 4 806.1 390.0 July 13.. 3, 877 1,342 1,723 812 1, 764. 0 482.1 877.0 405.0 July 20.. 3,960 1,394 1.738 828 1, 827. 0 523.4 884.6 419.0 July 27.. 4,010 1, 435 1,771 804 1, 865. 0 564.2 910.9 390.0 Aug. 3... 3,998 1, 476 1,713 810 1, 849. 0 603.5 852.8 393.0 Aug. 10.. 3,997 1,479 1,685 833 1, 859. 0 615.5 826.1 417.0 Aug. 17.. 4,079 1,521 1,732 826 1,931.0 650. 6 864. 9 416.0 Aug. 24.. 4,066 1,520 1,729 816 1,901.0 649.5 861.6 390.0 Aug. 31.. 4,093 1,548 1,740 805 1,915.0 668. 8 868.7 378.0 i Central reserve city banks only. 2 Weekly figures of excess reserves of all member banks and of country banks are estimates. Bick figures.—See Annual Report for 1933 (table 73). MEMBER BANK DEPOSITS [In millions of dollars. Averages of daily figures. Figures are for licensed banks only] Net demand and time deposits Net demand deposits Time deposits Month or week a T b ll a o b m n t e k a r e s l m - i - 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 n o y k u " s n - * a T b ll a o b m n t e a k e r m l s - l - C Y N i o e ty r w k * r O e c s i t t e h i r e e v s r e " b t a C r n y o k u " s n ' - a T b ll a o b m n t e k a e r m l s - ' - 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 n o y k u " s n 2 - 1933— 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 3 988 4 336 December 23, 646 6,215 9. 659 7,772 14, 567 5,452 5. 691 3,424 9,078 763 3.968 4.348 1934—January 24, 248 6,348 9, 937 7. 963 15,021 5.599 5, 891 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, 508 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 9, 643 719 4 240 4 679 June 26. 698 7,168 10, 929 8, 601 16, 988 6, 433 6,645 3,909 9,711 735 4,284 4,691 July _ _ 27. 073 7, 236 11,127 8,710 17, 276 6, 500 6,807 3,969 9,796 736 4, 319 4,741 August 27,310 7, 252 11,280 8,777 17, 490 6,534 6,940 4, 016 9,819 719 4,340 4,,761 Week ending (Friday): June 1 7,083 10.832 6, 364 6. 588 719 4 243 Jure 8 _ 7,122 10, 857 6,399 6, 594 722 4,263 June 15 7, 237 10, 982 6, 510 6, 709 726 4 273 June 22 7 147 10 939 6 404 6 645 743 4 294 June 29 7, 166 10,954 6,416 6. 641 750 4 313 July 6 7,202 11,011 6, 461 6,691 741 4 320 July 13 . . .. . 7,192 11,079 6, 443 6, 762 749 4 317 Julv 20 7, 260 11, 155 6,529 6,829 732 4 326 July 27 . .. 7, 259 11.203 6,530 6,879 729 4,324 Aug. 3 - .. 7,271 11,201 6,543 6,878 728 4,323 Aug. 10 7,199 11,192 6,473 6,878 726 4,314 Aug 17 7,253 11, 280 6, 531 6,950 722 4,330 Aug. 24 _- 7,247 11,296 6,534 6,949 713 4,348 \ug 31 7,311 11,332 6, 602 6,978 709 4,354 '- Weekly figures are not reported. * Central reserve city banks only. Back figures.—See Annual Report for 1933 (table 73). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

642 FEDERAL RESERVE BULLETIN O CTOBEE 1934 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 - b L a o t n o a k n s s Total s b c t a u o S o b n r n c e y e d d k - d s sb e c y s u S t r r e a e e - t d a e l s O c u e w a u c n t n h r u i s s e d e e r e d e r - - d Total A U b p a c l n n a e c c y i e t e a e i p n s - d t- p a c A n a b e y c l p c e e a t - - s - p C m c a o i p e a m r e l - r - Y L N b k o o t i r e e o n a o r r w n k s - s i Total m r s G U e i e t r o . e c i n S e v n u . - s - t - O r s i e t t c i h e u e s - r s b c t a u o o s b n e n r c y e - d d k d s s States ibroad TOTAL—ALL MEMBER BANES 1930—Sept. 24.— 35,472 466 21,010 7,864 3,163 9,982 3,262 205 62 523 2,472 10,734 4,095 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 2,103 113 384 1,217 12,106 5,343 6,763 8,563 Sept. 29—.. 33,073 599 18,713 6,842 3,149 8,722 1,563 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— S J e u p n t e . 3 3 0 0— 2 2 8 8 , , 0 0 0 4 1 5 4 5 5 7 7 3 1 1 5 4 , , 4 2 9 6 7 7 5 5 f , 2 0 9 8 2 6 2 2 , , 8 8 9 8 4 5 6 7, , 0 5 8 2 1 7 9 7 7 4 0 7 4 3 0 1 7 3 3 3 4 4 1 1 1 2 5 2 4 2 1 7 4 8 1 12 1 , , 1 4 2 1 1 4 5 6, , 3 6 6 2 6 8 5 5, , 7 7 8 5 6 5 5 5, , 7 9 7 1 0 6 Dec. 31 27,469 444 13,905 4,848 2,862 6,195 855 375 30 93 357 12, 265 6,640 5,726 5,447 1933—June 30 2—. 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 June 30 27,175 153 10,804 3,516 2,357 4,931 1,566 264 20 200 1,082 14, 652 9,137 5,515 4,651 NEW YORK CITY 3 1930—Sept. 24— 8,557 4,278 2,031 157 2,090 1,912 148 1,714 2,198 1,091 1,107 3,798 Dec. 31— 8,582 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 2_. 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 2,321 985 156 1,180 986 276 687 3,932 2,768 1,164 1,724 June 30— 7,666 2,202 937 156 1,109 1,131 225 4,265 3,053 1,212 1,840 OTHER RESERVE CITIES 1930—Sept. 24— 13,971 235 8,726 3,632 1,526 3,567 1,064 54 337 3,947 1,785 2,161 4,387 Dec. 31— 13, 758 286 8,906 3,656 1,631 3,620 531 122 212 167 4,035 1,727 2,308 3,991 1931—Mar. 25— 13,965 235 8,409 3,366 1,619 3,423 645 158 212 227 4,676 2,313 2,364 3,729 June 30— 13, 567 247 8,100 3,188 1,621 3,291 470 91 189 124 4,750 2,408 2,342 3,459 Sept. 29— 13,016 284 7,845 3,092 1,585 3,168 326 67 167 56 4,561 2,301 2,260 3,317 Dec. 31— 12,115 347 7,407 2,806 1,538 3,063 135 35 62 16 4,226 2,133 2,093 3,050 1932—June 30— 11,045 254 6,519 2,403 1,407 2,709 118 38 62 7 4,154 2,187 1,966 2,585 Sept. 30— 10,979 205 6,196 2,304 1,406 2,486 151 58 65 14 4,427 2,466 1,961 2,456 Dec. 31— 10, 535 178 5,879 2,169 1,398 2,312 115 44 46 12 4,362 2,462 1,900 2,298 1933—June 30 K. 9,780 129 4,846 1,702 1,160 1,984 184 63 51 58 4,621 2,867 1,754 1,846 Oct. 25—. 9,951 120 4,912 1,660 1,144 2,108 274 68 91 100 4,645 1,757 1,836 Dec. 30— 10,157 103 4,797 1,630 1,151 2,016 258 50 78 112 5,000 3,209 1,790 1,809 1934—Mar. 5— 10,816 79 4,669 1,566 1,158 1,945 306 64 138 5,763 3,954 1,809 1,753 June 30— 11,054 53 4,586 1,526 1,145 1,915 311 34 154 6,104 4.102 2,002 1,708 "COUNTRY" BANKS 1930—Sept. 24. 12,944 8,007 2,200 1,480 4,326 164 115 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 1,985 Dec. 31.. 10,999 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 1,503 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 a 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 1,129 June 30.. 8,456 4,016 1,053 1,056 1,906 124 72 4,283 1,982 2,301 1,102 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. 3 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, 1925-23, in the Annual Rsport for 1928 (table 52); for separate figures of United States Government securities and other securities back to 1914, see Annual Report for 1933 (table 78). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

643 OCTOBER 1934 P'EDERAL RESERVE BULLETIN ALL BANKS IN THE UNITED STATES ilncludes national banks^ State commercial banks and trust companies, mutual and stock savings banks, and all private and industrial banks included in abstracts issued by State banking departments] LOANS AND INVESTMENTS [In millions of dollars] All banks Member banks Nonmember banks Mutual savings banks Other nonmember banks Date Total Loans I m nv e e n s t t s - Total Loans I m nv e e n s t t s - Total Loans I m nv e e n s t t s - Total Loans I m nv e e n s t t s - 1929—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 1 9,556 i 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 i 5,945 i 3, 518 12,868 9,623 3,245 June 30 ._. 58,108 40, 6] 8 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 1 9, 747 i 6, 009 1 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 1 10, 316 i 6,130 i 4,186 7,491 4,931 2,560 Dec. 31. 44,946 26, 063 18, «83 27,469 15, 204 12, 265 10,182 6,079 4,103 7,295 4,780 2,515 1933—June 30 2... 40,089 22, 215 17,874 24, 786 12,858 11,928 10,344 5,941 4,103 5,258 3,415 1,843 Oct. 25 3 24,953 13,059 11,894 Dec. 30 r 10, 419 ' 22, 036 ' 18, 383 25, 220 12,833 12, 386 9, '389 5,909 4, 080 '5,211 '3,294 '1,917 1934—M ar 5 3 26, 548 12,706 13,842 June 30 3 27,175 12, 523 14, 652 r Revised. 1 Figures of preceding call carried forward. 2 Beginning June 30, 1933, all figures (other than for mutual savings banksj relate to licensed banks only, with some exceptions as to nonmember banks. 3 Nonmember bank figures not available. Back figures.—See Annual Report for 1933 (tables 67-69). 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 s b a a v u n i t n u k g s a s l n be o r O n t m b h a e e n r m k - s Total ti N on a- al State M s b a a v u n i t n k u g a s s l m n b o e e m n r - banks 1929—June 29 53,852 32,284 8,983 12, 584 Oct. 4 55,180 33,004 i 8,983 13,193 1929—June 29 25,110 8,707 7,530 1,177 611 15,792 Dec. 31 55,289 33,865 8,916 12,507 Oct. 4 24,951 8,616 7,468 L, 148 1611 15,724 Dec. 31 24,630 8,522 7,403 1,119 609 15,499 1930—Mar. 27. 53,185 32,082 i 8,916 12,187 June 30 54,954 33,690 9,197 12,067 1930—Mar. 27 24, 223 8,406 7,311 ,095 1609 15,208 Sept. 24 52, 784 31,839 i 9,197 11, 748 June30._ 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 ,054 1606 14,738 1931—Mar. 25 51,427 31,153 i 9, 507 10, 767 Dec. 31 22,769 8,052 7,033 1,019 603 14,114 June 30 51, 782 31,566 10,017 10,199 Sept. 29 49,152 29,469 i 10,017 9,666 1931—Mar. 25 22,372 7,928 6,930 998 1603 13,841 Dec. 31 45,821 27,432 10,105 8,284 June 30 _. 21,903 7,782 6,800 982 600 13,521 Sept. 29 21, 294 7,599 6,653 946 1600 13,095 1932—June 30. 41,963 24, 755 10,020 7,188 Dec. 31 19,966 7,246 6,368 878 597 12,123 Sept. 30 41,942 24,903 i 10, 020 7,020 Dec. 31 , . 41, 643 24,803 10,022 6,818 1932—June 30 __ 19,046 6,980 6,145 835 594 11,472 1933—June 30 * 38,011 23,338 9,713 4,961 Sept. 30 18,794 6,904 6,080 824 i 594 11, 296 Oct. 25 3 23,453 Dec. 31 18,390 6,816 6,011 805 594 10,980 Dec. 30. _. '38,594 23, 771 9,711 '5,113 1934—Mar. 53 25,293 1933— O Ju ct n . e 2 3 5 0 3 2 14, 530 5 5, , 8 6 1 0 8 6 4 5 , , 8 0 9 5 7 2 7 7 0 6 9 6 576 8,348 June 30 3 26,615 Dec. 30 ' 15, 060 6,011 5,154 857 581 '8,468 ' Revised. 1934—Mar. 5 3 _. 6,206 5,288 918 For footnotes see table above. June 30 6,375 5,417 958 NOTE.—Prior to Dec. 30,1933, member bank figures include interbank deposits not subject to immediate withdrawal which aggregated $103,- ' Revised. 000,000 on that date. For footnotes see table above Back figures—See Annual Report for 1933 (table 70). Back figures.—See Annual Report for 1933 (table 66). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

644 FEDERAL RESERVE BULLETIN OCTOBER 1934 REPORTING MEMBER BANKS IN LEADING CITIES [In millions of dollars. Monthly data are averages of weekly figures] Other leading Total—all weekly reporting member banks New York City cities I Loans and investments Loans and investments Month or date I l r B o o w r - - r B o o w r - - T lo o a t n a s l r B o o w r- - Total c L o u n o ri a t s n i e e s - s o lo A t a h l n e l s r Investm U. e S n . ts s e- b F i a . n a n g t R k s s . Total c L o u n o ri a t s n i e e s - s o lo A t a h l n e l s r Investm U e .S n . ts se- b F i a . n a n g t R k s s . a m n v d e e s n i t t n - s - b F i a . n a n g t R k s s . Total curities Total curities 1933—August 16,600 3,768 4,773 8,059 5,111 6,722 1,781 1,594 3,347 2,297 9,878 31 September.. 16,566 3,728 4,831 8,007 5,067 6,724 1,772 1,620 3,332 2,280 9,842 23 October 16, 536 3,636 4,944 7,956 4,990 6,728 1,683 1,715 3,330 2,232 9,808 21 November.. 16, 688 3,574 4,990 8,124 5,135 6,775 1,643 1,763 3,369 2,238 9,913 22 December.. 16, 620 3,595 4,862 8,163 5,210 6,717 1,670 1,694 3,353 2,256 9,903 24 1934—January 16, 589 3,542 4,732 8,315 5,334 6,675 1,676 1,672 3,327 2,233 9,914 20 February... 17. 267 3,567 4,713 8,987 6,040 6,997 1,711 1,699 3,587 2,517 10, 270 11 March 17, 484 3,539 4,663 9,282 6,251 7,168 1,683 1,650 3,835 2,702 10, 316 10 April 17, 526 3,570 4,648 9,308 7,269 1,718 1,631 3,920 2,745 10, 257 7 May 17, 328 3,516 4,555 9,257 6,256 7,050 1,680 1,560 3,810 2,735 10,278 June 17, 542 3,553 4,511 9,478 6,442 7,190 1,727 1,537 3,926 2,848 10,352 July 17, 749 3,531 4,455 9,763 6,676 7,273 1,727 1,501 4,045 2,930 10,476 August 17, 721 3,295 4,533 6,650 7,127 1,520 1,522 4,085 2,883 10, 594 September.. 17,770 3,137 4,697 7,120 1.455 1,610 4,055 2,820 10,650 July 3... 17, 761 3,556 4,482 9,723 6,672 7,303 1,749 1, 527 4,027 2,928 10, 458 10 July 11.. 17, 751 3,553 4,453 9,745 6,676 7,288 1,752 1,499 4,037 2,934 10,463 5 July 18.. 17,757 3,522 4,439 9,796 6,687 7,273 1,718 1,483 4,072 2,938 10,484 5 July 25.. 17, 728 3,493 4,445 9,790 6,671 7,227 1,690 1,494 4,043 2,918 10, 501 5 Aug. L_. 17, 762 3,358 4,515 9,889 6,678 7,191 1,571 1,529 4,091 2,903 10, 571 5 Aug. 8— 17, 677 3,304 4,523 9,850 7,108 1,520 1,521 4,067 2,878 10,569 5 Aug. 15- 17, 732 3,294 4,531 9,907 6,660 7,132 1,520 1,514 4,098 2,886 10,600 5 Aug. 22.. 17, 725 3,271 4,543 9,911 6,651 7,105 1,503 1,516 4, 086 2,883 10, 620 5 Aug. 29. 17, 70S 3,247 4,555 9,906 6,627 7, 098 1,485 1,531 4,082 2,866 10, 610 5 Sept. 5.. 17, 755 3,210 4,679 6,520 7,186 1,505 1,612 4, 069 2,827 10, 569 Sept. 12_. 17, 778 3,162 4,693 9,923 6,573 7,150 1,479 1,614 4,057 2,816 10, 628 Sept. 19.. 17, 756 3,095 4,704 9,957 6,631 7,065 1,419 1,608 4,038 2,826 10, 691 Sept. 26. 17, 789 3,080 4,713 9,996 6,631 7,077 1,416 1,606 4,055 2,813 10, 712 Back figures—See Annual Report for 1933 (tables 88-90) BROKERS' LOANS REPORTED BY THE NEW YORK STOCK EXCHANGE [Net borrowings on demand and on time. In millions of dollars] Total End of month 1933 Tanuarv 359 February 360 March 311 April 322 May 529 June 780 July 916 August September _ Ontobpr Novembsr Dpcember OC 00 4- MADE BY REPORTING MEMBER BANKS IN N.Y. CITY [In millions of dollars. Monthly data are averages of weekly figures] From New From private For ac- York banks banks, brokers, For count of For ac- and trust com- foreign banking Month or date Total own ac- out-of- count of panies agencies, etc. count town others banksi 1934 1933 1934 1933 1934 1933—August 877 747 122 8 September.. 847 741 98 8 9 9 98 0 3 1 3 8 2 2 24 7 9 7 0 8 8 8 8 3 7 6 9 3 2 9 6 6 0 2 4 1 6 7 0 4 6 8 N D O o c e t c v o e e b m m er b b e e r r . . . . 7 7 7 7 5 2 9 9 3 6 6 6 6 1 3 3 1 1 1 1 1 0 1 2 6 1 2 5 6 6 1 1 1 , , , 0 0 0 8 1 8 8 6 2 2 4 6 6 6 9 8 1 4 9 9 9 7 1 8 3 2 0 5 6 8 4 8 6 1 1 1 1 0 0 6 4 2 1934— F M A J e a p a b n r r r i u c l u a h a ry ry 8 8 8 9 8 0 8 7 9 2 6 5 6 7 7 8 5 3 3 1 7 1 6 3 1 1 1 1 3 4 4 5 7 9 8 6 8 9 2 6 9 8 8 7 3 2 4 2 3 8 8 80 4 2 6 1 2 8 8 7 4 6 0 9 9 3 9 9 7 4 1 6 7 6 7 4 2 1 J J M A u u u a l n y g y e ust 1 1 , , 0 0 9 8 4 1 3 2 2 6 7 7 8 8 7 6 4 6 7 7 5 6 1 0 1 1 1 1 6 6 5 6 3 8 6 5 8 6 3 1 706 70 September.. 776 633 142 1 8 78 4 9 5 7 77 1 6 2 7 6 7 9 S S e e p p t t . . 5 1 . 2 . . . . 8 7 2 9 4 6 6 65 7 2 5 1 1 4 4 3 8 1 1 Sept. 19.. 745 604 140 1 Back figures.—See Annual Report for 1933 (table 93). Sept. 26.. 740 603 136 1 i Member and nonmember banks outside New York City (domestic banks only). Back figures.—See Annual Report for 1933 (table 92). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 1934 FEDERAL RESERVE BULLETIN 645 ACCEPTANCES AND COMMEIv IAL PAPER BANKERS' ACCEPTANCES OUTSTANDING (DOLLAR CLASSES OF BANKERS' ACCEPTANCES (DOLLAR ACCEPTANCES) ACCEPTANCES) [In millioris of dollars] [In millions of dollars] H er e a l l d b a R b n e y k s s e F r e v d e - Held b b y a n a k c s cepting s o t B o n r a g e s d o e o d i d n s B go a o o s n e d d s United stored Based States in End of month T s o t i o a n u t n g t a - d l - o F a w c o - n r o c e o f F a i u g c o f - o n n r r t - Total O bi w ll n s bo B u i g ll h s t o H t b h e y l e d r? End of month Total U in . t S r> . o p f U n r o o . r S e m t x . s - s c h ( h r w e i o p o d a u p r i r s t e e e s d - ) c D h e a o x n ll - g a e r s t f h r c o i o i b r e p e u e s i p - n g o e - n d r count corre- between tween spond- domestic foreign ents points points 1932—May 787 4 183 510 225 286 90 OUTSTANDING June 747 36 98 518 200 318 96 July 705 12 59 563 197 366 70 1933—August 694 95 160 229 4 206 August 681 3 49 574 198 376 55 September 715 103 171 237 4 199 September. __ 683 2 43 573 159 414 64 October 737 99 185 253 5 195 October 699 3 39 605 199 406 52 November 758 98 200 278 4 180 November. _ 720 4 32 655 268 386 28 December. 764 94 207 277 4 182 December... 710 4 40 604 224 380 62 1934—Januar v 771 89 225 277 5 175 1933—January 707 2 41 626 256 370 38 February 750 98 203 261 4 184 February 704 307 30 325 201 124 42 March 685 103 186 226 3 168 March 671 280 45 261 153 108 85 April 613 103 164 186 3 158 April 697 163 43 404 206 199 86 May.. _ . 569 100 150 164 3 152 May 669 13 36 505 229 276 115 June 534 97 145 141 4 148 June 687 41 36 487 201 287 123 Julv... 516 94 135 138 4 144 July 738 2 37 552 248 304 147 August. 520 89 140 147 4 141 August 694 1 40 499 252 247 154 Sept ember... 715 1 41 517 236 282 156 HELD BY F. R. BANKS October 737 1 ' 31 592 271 321 112 (OWN ACCOUNT) 1 November. _. 758 18 3 599 273 326 138 December... 764 127 4 442 223 219 190 1933—August 1 (2) (2) (2) (2) September 1 (2) (2) 1 (2) 1934—January 771 105 4 567 255 312 95 October 1 (2) (2) (2) (2) February ... 750 56 5 581 266 315 108 November 18 7 2 4 (2) J 4 March 685 23 5 576 252 324 81 December 127 23 22 39 1 39 April -. 613 3 4 536 236 299 70 May 569 (i) 3 507 226 281 59 1934—January 105 18 21 30 2 31 June 534 0) 2 480 220 260 53 February 56 11 11 15 2 16 July 516 (i) 1 472 222 250 42 March 23 5 6 7 2 4 August 520 0) 1 483 222 261 37 April 3 1 1 (2) (2) 2 May (2) (2) June (2) (2) (2) i Less than $500,000. July (2) (2) (2) August Source: For acceptances outstanding (and held by accepting banks), American Acceptance Council. Back figures.—See Annual Report for 1933 (table 100). 1 Total holdings of Federal Reserve banks include a small amount of unclassified acceptances. 2 Less than $500,000. ACCEPTANCES PAYABLE IN FOREIGN CURRENCIES- Back figures.—See Annual Report for 1933 (tables 97 and 25). HOLDINGS OF FEDERAL RESERVE BANKS COMMERCIAL PAPER OUTSTANDING [In thousands of dollars] [In millions of dollars] End of month 1931 1932 1933 1934 End of month 1931 1932 1933 1934 January 36,119 33, 444 29, 036 5,977 January. 327 108 85 108 February 23,958 33,478 28,997 5, 887 February 315 103 84 117 March 1,063 30, 778 24, 788 5,275 March _ 311 106 72 133 April 1,074 30, 736 7,181 5,070 April 307 108 64 139 May 1,073 30,837 6.981 5.076 May__ _ 305 111 60 141 June - 10,551 30,762 7,089 5,075 June 292 103 73 151 July 34,371 30, 645 6,821 5,081 July 289 100 97 168 August 145, 215 30, 834 6,199 5,079 August. 271 108 107 188 September 48,804 30,849 6,068 5,691 September 248 110 123 October 33.501 30, 659 5,686 October ___ 210 113 130 November 33, 386 30, 652 5,841 November 174 110 133 December 33, 429 29, 489 6,033 December 118 81 109 Back figures.—See Annual Report for 1933 (table 26), Back figures.—See Annual Report for 1933 (table 96). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

646 FEDERAL RESERVE BULLETIN OCTOBER 1934 FEDERAL RESERVE BANK RATES OPEN-MARKET RATES RATES ON REDISCOUNTS FOR AND ADVANCES TO SHORT-TERM RATES IN NEW YORE CITY MEMBER BANKS [Percent per annum] Rediscounts and advances un- Advances under sec. d F e e r d e s r e a e l s . R 1 es 3 e a rv n e d A 1 c 3 t a of the R 10 e b s e o rv f e t A he c t Federal Prevailing rate on- Average rate Average yield Federal Reserve bank B N o e s w to Y n ork e R f O fe a c c t t e t . 2 o i 1 n n F F D e e b b a . . l t i e s h e 8 2 e s , , d 1 t 1 a 9 9 b 3 3 - 4 4 o P u r s e r v a 2 2 i t H - e e R f O fe a c c t t e t . 4 4 o i 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 , ,1 1 a 9 9 b 3 3 - 3 3 Month or week m m p P 4 c a o r e o t p i r n o m m e c t i r 6 h - e a , s l a a P b c d n e r a c a 9 c r i n e s y m 0 e p k ' s s e - t , - d l T o a i 9 a y m n 0 s s e i , N Ca e l w l lo n a e R n w e s - a i l 9 U 1 b . - i S d ll . a s b y T il r l 1 e s a 8 s b s 2 i u - ll d r s y ay Philadelphia VA Nov. 16,1933 3 4 Oct. 20,1933 Cleveland 2 Feb. 3,1934 2^ 4 Oct. 21,1933 Richmond 3 Feb. 9,1934 VA 4H July 16,1934 1933 Atlanta 3 Feb. 10,1934 VA July 15,1933 September K .75 .75 .11 Chicago 2H Oct. 21,1933 3 4 Oct. 16,1933 October IK K tt-% .75 .75 .13 St. Louis VA Feb. 8,1934 3 4H Oct. 21,1933 November K-H .75 .75 .38 Minneapolis 3 Mar. 16,1934 VA 5 Mar. 14,1933 December. .94 .94 Kansas City 3 Feb. 9,1934 VA 4 July 10,1934 Dallas 3 Feb. 8,1934 VA 4 Mar. 12,1934 1934 San Francisco-. 2 Feb. 16,1934 VA 4 Oct. 19,1933 January XA 1.00 1.00 .66 February 1.00 1.00 .63 0.85 March 1 -IK K- 1.00 1.00 .09 .31 RATES U O A N L S D , I P S A C R O T U N N E T R S S F H O IP R S , A A N N D D A D C V O A R N P C O E R S A T T I O O N IN S DIVID- April 1 -IK Vs-H 1.00 1.00 .08 .19 May l Vs-H 1.00 1.00 .07 .15 June 1.00 1.00 .07 Advances secured by July... Vs-H 1.00 1.00 .07 Di u s n c d o e u r n t p s a a r n . d 3 o ad f v se a c n . c 1 e 3 s d th ir e e ct U o n b it l e ig d a tio S n t s a te o s f August H- H H-l 1.00 1.00 .18 of the Federal Re- (last paragraph of sec. September 1.00 1.00 .25 serve Act 13 of the Federal Re- Feder b al a n R k eserve serve Act) Week ending— Sept. 1 1.00 1.00 .22 e R f O f a e c c te t t . i o 1 n n Da l t i e s h e e s d tab- e R f O f a e c c te t t . i o 1 n n Da l t i e s h e e s d tab- S S e e p p t t . . 8 15 VS-VA 1 1 . . 0 0 0 0 1 1. . 0 0 0 0 . . 1 2 8 3 Sept. 22 K-K 1.00 1.00 .28 Sept. 29 1.00 1.00 .29 Boston 6 Aug. 11,1933 4 Oct. 20,1933 NewYork____ 6 Aug. 10,1933 VA Feb. 8,1934 1 Stock exchange 90-day time loans. Philadelphia 6 Aug. 12,1933 4 Oct. 20,1933 2 Stock exchange call loans; new and renewal rates. Cleveland 5 July 24,1934 4 Oct. 21,1933 pe 3 r i A od v . erage rate of discount on issues sold by U.S. Treasury within Richmond 5H July 16,1934 4 Feb. 19,1934 Atlanta __ 5 Mar. 20,1934 4 Mar. 17,1934 Back figures.—See Annual Report for 1933 (tables 60 and 61). Chicago. 6 Aug. 13,1933 4 Oct. 16,1933 S M t. i n L n o e u a i p s olis.. _ 6 5y2 J A u u l g y . 1 1 0 0 , , 1 1 9 9 3 3 4 3 4 4 H H A M p a r r . . 1 1 5 5 , , 1 1 9 9 3 3 3 3 RATES CHARG P E R D IN C C I U P S A T L O M CI E T R IE S S BY BANKS IN Kansas City 5 July 10,1934 4 Feb. 23,1934 Dallas 6 Sept. 8,1933 4 Mar. 12,1934 [Weighted averages of prevailing rates! San Francisco 6 Sept. 2,1933 4 Oct. 19,1933 8 other northern 27 southern and New York City and eastern cities western cities NOTE.—For rates on industrial advances see p. 698. Month BUYING RATES ON ACCEPTANCES 1932 1933 1934 1932 1933 1934 1932 1933 1934 [Buying rates at the Federal Reserve Bank of New York] 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 Maturity e R f O f a e c c te t t . i o n 1 n Da l t i e s h e e s d tab- Pre ra v t i e ous A M M p a a r y r i c l h 4 4 4 . . . 6 5 7 9 5 2 4 4 4 . . . 2 3 8 4 3 8 3 3 3 . . . 4 3 3 2 9 1 5 5 5 . . . 1 1 1 4 0 4 4 5 5 . . . 0 3 9 9 9 9 4 4 4 . . . 3 5 5 9 2 2 5 5 5 . . . 6 6 6 4 4 3 5 5 5 . . . 6 6 6 6 6 8 5 5 5 . . . 3 2 4 4 8 0 June _ 4.61 4.10 3.30 5.13 4.97 4.30 5.62 5.62 5.19 July 4.42 3.93 3.30 5.05 4.82 4.15 5.63 5.54 5.07 1-15 days... Oct. 20,1933 1 August 4.45 3.97 3.33 5.12 4.68 4.12 5.68 5.53 5.05 16-30 days.. ....do 1 September- 4.30 3.79 3.26 5.03 4.65 4.11 5.63 5.55 5.04 31-45 days. . ....do 1 October 4.35 3.76 4.96 4.51 5.56 5.50 46-60 days.. ....do.. 1 November.._ 4.12 3.52 4.88 4.54 5.55 5.42 61-90 days.. ....do 1 December... 4.22 3.48 4.88 4.59 5.60 5.43 91-120 days . ....do 1 121-180 days IK I Back figures.—See Annual Report for 1933 (table 63). NOTE.—Rates on prime bankers' acceptances. Higher rates may be charged for other classes of bills. Back figures.—See Annual Report for 1933 (table 58). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBEE 1934 FEDERAL RESERVE BULLETIN 647 TREASURY FINANCE UNITED STATES GOVERNMENT DEBT VOLUME AND KIND OF SECURITY MATURITIES [In millions of dollars] [In millions of dollars]! Interest bearing Interest-bearing debt Total Nonin- End of month d (g e r b o t s ) s Total Bonds Notes Bills t b e i e n r a e g r s - t Total Bonds i Notes C ic e a r t t e if s - Bills Outstanding Sept. 30,1934— 1933 Ob T l o ig t a a t l i . o . ns maturing: 26,626 15,922 8,020 1,156 1,529 J J A A N M M S D F O u u e e p u o e c a l n a p b t y c r g v y r e o t i r e u c e l e b u m h m s m e a t b r r b b y e e e r r r j 2 2 2 2 2 2 2 2 2 2 2 3 2 1 2 0 1 3 3 3 1 3 , , , , , , , , , , , 4 0 9 0 0 3 8 8 6 5 5 4 5 3 9 5 6 1 5 1 3 3 1 1 5 9 0 2 4 3 0 9 4 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 3 0 1 1 0 3 2 , , , , , , , , , , , 6 1 5 4 0 9 4 1 6 2 7 6 6 8 6 8 9 5 5 7 2 4 9 1 4 9 7 2 0 8 2 3 0 1 1 1 1 1 1 1 1 1 1 1 4 5 4 4 4 4 5 5 5 5 4 , , , , , , , , , , , 0 0 0 2 2 5 2 2 2 2 5 7 7 7 3 2 6 3 3 2 6 3 4 4 4 0 3 9 0 9 3 9 0 4 3 4 5 5 5 3 3 4 5 5 , , , , , , , , , , , 1 1 1 1 1 1 7 5 5 8 5 5 2 5 4 5 8 4 7 0 7 7 0 5 1 8 3 0 8 6 1 6 5 2 2 2 2 2 2 1 1 1 1 1 , , , , , , , , , , , 4 4 5 7 4 3 2 1 3 2 1 9 4 5 9 9 6 4 1 6 0 3 2 3 3 5 3 9 6 9 3 0 8 1,0 9 9 9 9 9 9 9 6 8 9 0 5 5 7 5 5 1 5 1 5 4 3 2 2 9 4 2 8 3 7 5 1 3 3 3 3 3 3 3 3 3 3 3 7 5 6 7 8 7 5 7 8 7 8 9 4 4 6 1 3 0 0 5 1 1 Othe A J A 1 B 1 1 1 O 1 1 r a 9 9 9 9 9 9 e f p c 3 4 3 3 4 3 n t o f t r e 9 3 8 7 1 6 . o . b . r r 1 l 1 e 1 i 1 - - g - 9 M J D S a 4 a t e e a 3 n i p c o r . . . t n 1 . 3 3 s , 3 1 1 1 s 0 9 , , 1 , 3 1 9 5 9 1 3 3 9 5 3 5 5 9 2 5 1 1 1 1 , , , , , , , 5 1 7 0 8 8 0 8 7 4 8 5 0 4 4 4 0 4 8 9 3 7 1 2 5 6 9 3 8 6 0 8 4 0 8 9 3 9 2 , , 1 8 8 8 6 4 4 4 3 8 9 4 6 2 6 4 8 8 9 4 1 1 1 , , , 7 7 9 5 4 7 2 5 9 4 3 2 1 9 7 2 4 9 8 4 8 8 0 9 9 1 9 6 2 3 9 5 7 5 7 1 1934 1 Issues classified as of date of final maturity; most issues are callable January 25,071 24,720 15, 600 5,626 2,280 1,214 351 at earlier dates. Amount callable before Oct. 1, 1935, and not yet called, February 26,055 25, 707 15, 579 6,472 2,278 1,378 348 $5,812,000,000, including certain pre-war issues that are held as collateral March 26,157 15,579 6,925 1,816 1,378 459 for circulating notes. April 26,118 25,599 15, 718 6,689 1,814 1,378 519 8 Includes approximately $40,000,000 of 4th Liberties called for redemp- May 26,155 25, 588 15,695 6,678 1,812 1,404 567 tion Apr. 15, 1934, and not yet redeemed, and approximately $424,000- June 27,053 16, 510 6,932 1,635 1,404 573 000 of 4th Liberties called for redemption Oct. 15, 1934. July 27.189 26,605 16,516 6,951 1,683 1,454 585 3 Includes the 2 percent Consols of 1930, which are held as collateral for August 27, 080 26,495 16, 513 6,921 1, 682 1,379 585 circulating notes, and such issues as Postal Savings bonds, retirement- September 27.190 26,626 15,922 8,020 1,156 1,529 564 fund notes, and adjusted-service certificate-series, in which special funds 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 r s in e g o r p d er e i c o r d ease receipts Period Total i I I n n c t t a o e x m rn e al rev O e t n h u e e r C l m a u n a i s s e n t c o o d e u m l s - s Total2 General3 g E e m nc e y r - * p o t e u ( r n ) re d ex s i - - G ba f e u l n a n e n d r c a e l 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 2,238 746 858 475 4,845 3,404 1,277 -2,607 +445 +3,052 June 1934 6,089 818 1,823 475 5 8,884 2,741 4,004 -2, 795 +1, 720 +4,514 3 months ending: September 1932.. 472 174 170 87 1,151 280 -679 +445 +1,124 September 1933_. 710 163 395 114 939 614 295 -229 +283 +512 September 1934.. 992 216 578 159 1, 517 667 828 -525 -389 +136 1933 June 306 147 106 33 < 494 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 10 163 972 148 808 -743 +511 +1,254 February.-_ 3,024 23 149 644 188 447 +2,380 +3,364 +984 March 435 232 167 624 160 450 -189 -84 +105 April 199 15 137 3 2,684 305 370 -2, 485 -2,524 -39 May 247 25 162 556 191 350 -309 -272 +37 June 411 188 170 749 310 423 -338 +560 +898 July 233 18 171 479 230 236 -246 -110 +136 August 297 25 188 523 204 310 -226 -335 -109 September.. 462 173 219 515 233 283 -53 +56 +110 * Total includes trust and contributed fund receipts not shown separately, and also includes increment, amounting to $2,808,000,000 in February 1934, $2,000,000 in March, and small amounts in subsequent months, resulting from reduction in the weight of the gold dollar. 2 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 o 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. 8 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

648 FEDERAL RESERVE BULLETIN OCTOBER 1934 ASSETS AND LIABILITIES OF GOVERNMENTAL CREDIT AGENCIES, JULY 31, 1934 [Compiled by U.S. Treasury Department from reports received from organizations concerned. In millions of dollars] Financed wholly from Government funds Regional s F t R C r r i a u e n o t c c r a i p o t o n i o n n c o - - e n c m o c C t o r r i o p e o d d m o n i i r t - t a y - E i b m x a p p n o o k r r s t t - i A s W P t d r u o a m b t r l i i k i o n c s n - c a o c g t t r r i u r o p e i r c d o n a u i r s l t a l- - t i P i t r o a r c n o t o i d o c r u p n re c o s d - - - Other Total ASSETS Loans—total 1,797 161 2 154 51 264 2,427 Preferred stock, capital notes, and debentures of banks and trust companies 747 747 Cash—total 11 C1) 12 0) 3 10 28 65 Investments: United States securities 1 1 Obligations guaranteed by United States 4 4 Federal land bank bonds 30 30 Intermediate credit bank securities Production credit associations—class A stock 67 67 Other assets - 44 3 C1) 1 6 1 136 191 Total assets _ _ .. _. 2,599 164 14 155 59 113 428 3,532 LIABILITIES Bonds, notes, and debentures: Obligations guaranteed by United States 230 230 All other 98 98 Other liabilities (including reserves) 41 t1) C1) 7 3 19 71 Total liabilities 271 H) 0) 7 3 117 399 Excess of assets over liabilities, exclusive of interagency transactions. . _ _ _ 2,328 163 14 155 52 110 311 3,133 Privately owned interests United States Government interests 2,328 163 14 155 52 110 311 3,133 Distribution of Government interests: Capital stock 500 3 14 2 254 45 110 2 2,147 3,072 Surplus 55 1 0) 56 Interagency interest (net) _J . 1,772 159 -98 8 -1,836 5 Financed partly from Governmeiit funds F b e l a a d n n e k d r s al m F b c i e e n r a d d e t n e e d i k a r r i - s t a te l F C r M F e a g o a d t a o r i r e g p o r m r e t n o a - - l B f a o o t a p r i v n e c e k r o - s s - H b l a o o n a m k n e s O C r H L a w o o t o r i n m a p o e n o n e r - s' a F s a n a s t e d s i v d o o i e n c n lo r i s g a a a s l - n D F C r I e e a n a o d p n t s r i e o c u p o e r s r o n a - i - t l Total ASSETS Loans—total 1,728 202 430 21 86 1,003 3,470 Preferred stock, capital notes, and debentures of banks and trust companies Cash—total 74 15 11 9 7 54 99 269 Investments: United States securities 66 34 27 2 228 357 Obligations guaranteed by United States 137 40 52 9 239 Federal land bank bonds __ 347 347 Intermediate credit bank securities 2 2 Production credit associations—class A stock Other assets 158 4 3 1 1 19 2 3 191 Total assets._ 2,164 295 791 113 105 1,077 2 329 4,876 WM j !N HH LIABILITIES Bonds, notes, and debentures: Obligations guaranteed by United States _ 59 544 285 888 All other 1,540 187 614 2,341 Other liabilities (including reserves) _ _ 310 7 50 0) 4 15 10 395 Total liabilities 1,909 194 594 (i) 4 914 10 3,624 Excess of assets over liabilities, exclusive of interagency transactions 256 100 196 113 102 164 2 319 1 251 Privately owned interests.. _ _ 93 1 20 169 283 United States Government interests 162 100 196 112 82 164 2 150 968 Distribution of Government interests: Capital stock 123 70 200 110 81 174 2 150 911 Surplus. _ _. 44 30 -4 2 -10 63 Interagency interest (net) —5 -5 1 Less than $500,000. 2 Nonstock. 3 Deficit less than $500,000. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

649 OCTOBER 1934 FEDERAL RESERVE BULLETIN RECONSTRUCTION FINANCE CORPORATION LOANS, SUBSCRIPTIONS, AND ALLOCATIONS [Amount outstanding at end of month. In thousands of dollars] Proceeds disbursed, less repayments Proceeds not yet disbursed Aug. 31, May 31, June 30, July 31, Aug. 31, Sept. 30, July 31, Aug. 31, 1933 1934 1934 1934 1934 1934 p 1934 1934 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) * r 689,140 613, 397 598,907 582,200 594,905 591,972 192,047 236,021 Building and loan associations 1 78,055 45, 495 40, 442 36,893 31,494 28, 252 7 Insurance companies 68, 242 35,929 34, 748 32,619 31, 678 30,722 Mortgage-loan companies * r 158,418 191, 393 192,150 184,790 162, 081 160, 767 106, 487 105, 236 ^4.7 AQA AOO ooo Federal land banks 25,800 193, 618 193, 618 124,951 116,436 116,040 Joint-stock land banks _ - 9,793 10,323 9,308 8,598 7,676 7,696 1,369 1,367 Agricultural credit corporations _ 2,145 800 800 800 800 796 300 275 Regional agricultural credit corporations 91, 576 10, 690 7,199 6,546 4,721 4,389 1,098 1,188 Livestock credit corporations _ _ 3,385 1,677 1,717 1,643 1,616 1, 604 148 148 Railroads (including receivers) 331,101 344, 716 353,385 354,447 343,189 343, 287 4,104 3,197 State funds for insurance of public moneys 1,958 3,476 2,705 2,150 1,841 Processors or distributors for payment of processing taxes 9 9 9 2 2 Total 1, 458, 201 1,450, 489 1,436,191 1,336, 592 1, 297,138 1, 287, 756 305, 561 347,433 Other loans: For self-liquidating projects, sec. 201 (a) (including repairs to property damaged by earthquakes, etc.) _ _ _ 41,801 88, 560 93,009 96,062 107, 287 111, 184 111,588 112, 276 For financing exports of agricultural surpluses, sec. 201 (c) 3,401 12, 752 13,948 15,185 14,985 14,954 3,991 3,958 For financing agricultural products, sec. 201 (d) 2,919 4,089 4,114 4,507 4,422 5,107 11,777 5,876 To commodity credit corporation 167, 945 202, 559 157, 667 108, 646 76, 430 187,851 193,073 On preferred stock of banks 12, 766 19,062 21, 353 21,922 21,994 22, 289 2,714 2,396 On preferred stock of insurance companies 15, 875 15,875 15,875 25, 885 25,885 3,500 3,500 To drainage, levee, and irrigation districts 4,156 4,636 8,173 9,177 9,479 54,730 54, 612 To public school authorities 22, 300 22, 300 To industrial and commercial businesses 274 1,916 4,188 8,105 Total 60,887 312, 439 355,493 319,392 314, 970 289, 544 380, 341 383,796 Subscriptions: Subscriptions for preferred stock of banks. __ 45,853 413,473 498,106 515, 794 532,760 545, 599 84,781 73,294 Purchases of capital notes and debentures of banks. 700 271, 501 295, 248 243, 720 248, 525 259, 772 80, 290 87, 783 Total 46, 553 684, 974 793,354 759,514 781, 285 805, 371 165, 071 161,077 Total loans and subscriptions 1, 565, 641 2, 447,902 2, 585,038 2,415,498 2, 393, 393 2, 382, 671 2 850,972 2 892, 305 ALLOCATIONS For relief: Federal Emergency Relief Act of 1932 299,192 298, 562 298, 561 298, 542 298, 524 298, 227 15 15 Federal Emergency Relief Act of 1933 124,974 487,979 493,458 499,591 499, 592 499, 589 409 408 Total 424,166 786,541 792,019 798,133 798,116 797,817 424 423 To other Government agencies: To Secretary of the Treasury for: Purchase of stock of Federal Home Loan banks. 52, 470 80,946 81, 446 81, 446 81,446 81, 446 43, 295 43,295 Purchase of stock of Home Owners' Loan Corporation 1,000 114,000 154,000 174,000 200, 000 200, 000 26,000 To Land Bank Commissioner 5,400 147, 600 147, 600 147, 600 147, 600 147, 600 97,400 97,400 To Federal Farm Mortgage Corpoiation 55,000 55,000 55,000 55, 000 55, 000 To Federal Housing Administrator 10,000 10,000 10, 000 To Secretary of Agriculture for: Crop loans 115,000 115,000 115,000 115,000 115,000 115, 000 Reallocated as capital regional agricultural credit corporations 44, 500 44, 500 44, 500 44,500 44,500 44, 500 Reallocated to Governor of Farm Credit Administration 40, 500 40, 500 40, 500 40,500 40, 500 Total 218, 370 597,546 638,046 668, 046 694, 046 694, 046 166, 695 140, 695 Total allocations 642, 536 1, 384, 087 1, 430,064 1,466,179 1,492,162 1, 491,863 167,120 141,119 Total loans, subscriptions, and allocations 2,208,178 3,831, 989 4,015,103 3, 881, 677 3,885, 555 3, 874, 533 2 1,018, 0912 1,033,423 ' Revised. p Preliminary. 1 Loans to aid in the reorganization or liquidation of closed financial institutions amounted on July 31,1934, to $363,340,000, representing proceeds disbursed, less repayments, and $194,900,000, not yet disbursed, and on Aug. 31,1934, to $363,345,000 representing proceeds disbursed, less repayments, and $241,060,000 not yet disbursed. 2 In addition the corporation had approved in principle as of July 31, 1934, loans of $94,363,000 and subsciiptions of $82,895,000, and as of Aug. 31, 1934, loans of $321,890,000 and subscriptions of $50,969,000, upon the performance of specified conditions. Back figures.SdQ BULLETINS for December 1933, pp. 738-739, and February 1934, pp. 103 and 132. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

650 FEDERAL RESERVE BULLETIN OCTOBER 1934 BOND PRICES STOCK PRICES [Averages] Preferred Common stocks (index, 1926=100) stocks Other bonds i Year, month, or date (indus- G U ov .S er . n- Corpo- Corporate tri g a r l a d h e ig ) h- Total In tr d i u al s- R ro a a i d l- Utility Year, month, or date ment rate and bonds munic- Number of issues.. 20 421 351 33 37 (h ip ig a h l - Total In tr d ia u l s- R ro a a i d l- Utility 1932 average.. 96.1 46 26 79 grade) 1933 average.. 104.8 38 78 1933—August 112.9 49 87 Number of issues 2 15 3 60 60 20 20 20 September. 112.0 47 80 October 109.8 40 75 1932 average. 99.2 81.1 69.4 63.2 64.8 80.5 November.. 107.5 38 70 1933 average. 102.2 84.0 73.4 69.2 70.5 80.6 December.. 107.7 40 67 1933—August 102.9 89.9 80.8 75.9 81.2 85.3 1934—January 111.2 46 73 September- 103.0 87.9 77.5 74.5 76.8 81.4 February __ 116.5 50 81 October 102.9 86.5 75.3 72.7 73.5 79.7 March 117.5 48 76 November- 100.5 82.6 72.1 70.5 68.5 77.3 April 120.2 49 76 December.. 100.0 73.6 71.5 72.2 77.1 May.. 121.0 43 70 June. 122.1 44 72 1934—January 100.3 88.3 78.5 75.6 79.0 80.9 July. 123.5 41 69 February.._ 101.9 92.9 84.0 79.8 85.8 86.5 August 122.6 36 65 March. 102.8 95.1 84.8 80.5 86.4 87.7 September. 121.0 35 64 April 103.7 97.0 87.0 82.8 88.7 89.7 May 104.4 97.6 86.1 82.5 86.9 89.1 Sept. 5.. 121.8 65 June 104.7 99.0 86.3 82.5 87.1 89.4 Sept. 12. 120.9 63 July... 105.2 99.3 86.1 83.2 85.8 89.4 Sept. 19. 120.4 66 62 August 104.1 97.8 83.9 82.6 81.3 87.9 Sept. 26. 120.8 65 September.. 102.3 96.7 83.0 82.2 79.3 87.6 Sept. 5— 102.9 97.0 83.9 82.7 80.7 88.2 Source— Standard Statistics Co. S Se e p p t t . . 1 19 2 . . . . . . 1 1 0 0 1 1 . . 9 8 9 95 6 . . 9 5 8 8 2 1 . . 7 9 8 8 2 1 . . 2 7 7 7 8 7 . . 4 5 8 8 7 6 . . 6 6 CAPITAL ISSUES Sept. 26... 102.2 97.2 83.5 82.3 80.2 88.1 [Long-term; i.e., 1 year or more. In millions of dollars] 1 Price indexes derived from average yields. New issues 2 Now 3 Liberties and 12 Treasuries. New Treasury issues were added Re- Aug. 15, 1933, Nov. 1, 1933, Apr. 16, 1934, and June 15, 1934. Domestic fund- 3 45 corporate and 15 municipal. ing of S N ou e r w ce Y .— or F k o ; r f o U r n o it t e h d e r S b t B a o t n O e d s N s G , D o S v t a e n r Y n d m I a E r e d n L t S D b ta o S t n is d 1 ti s c , s F C ed o e . ral Reserve Bank Year and month m T a ( f o d e o n s o t r d a - t - i l c Total* S n m a t i n a c u d t i - e - B C on o d rp s orate F ei o g r n - m is ( a f s e d o n u o s r d e t - - i s c eign) pal and Stocks eign) notes Year, d m a o te nth, or T u U r r e . y S a . s » - M g ( i h r p u a i a n g d l h i e 3 c ) - - Aaa Corpo A ra a te, by r A atings * Baa 1 1 1 9 9 9 2 2 25 6 7 . _ 6 6 7 , , , 3 2 5 1 0 5 4 1 6 5 5 6 , , , 1 1 2 8 2 1 9 5 9 1 1 1 , , , 3 3 4 4 5 7 4 2 5' 3 2 2, , , 6 4 1 6 5 8 7 2 3 1 1 1 , , , 0 4 1 8 7 5 7 4 3 1 1 1 , , , 0 1 3 7 3 2 6 7 5 2 1 , , 2 0 9 2 4 2 0 6 5 1928. 8,040 6,789 1,379 2,385 2,961 1,251 1,858 1929 10,091 9,420 1,418 2,078 5,924 671 1,422 Number of issues 9 15 30 30 30 30 1930. 6,909 6,004 1,434 2,980 1, 503 905 711 1931 3,089 2,860 1,235 1,240 311 229 949 1932 average 3.66 4.65 5.01 5.97 7.20 9.30 1932.. 1,165 1,157 755 305 20 8 583 1933 average _."__ 3.31 4.71 4.49 5.23 6.09 7.76 1933. 722 710 484 40 120 12 ••340 1933— J J A S M u u e u n l p a y g e y t u e s m t ber 3 3 3 3 3 . . . . . 2 2 2 2 3 0 2 1 0 1 4 5 4 4 4 . . . . . 2 5 5 6 7 7 4 9 0 1 4 4 4 4 4 . . . . . 4 3 3 6 3 6 6 0 3 5 5 4 4 4 5 . . . . . 0 7 4 9 8 9 7 0 6 3 6 5 5 5 5 . . . . . 2 8 5 5 7 9 8 8 1 0 7 6 6 7 7 . . . . . 7 0 6 7 2 7 7 2 4 7 1933— N S D O A e c e o u p t c v g o t e e u b e m s m m e t r b b b e e e r r r . . . . . . . 4 6 5 6 4 7 8 4 6 5 5 8 6 4 7 9 3 3 5 8 4 7 2 6 2 1 0 0 0 0 0 14 0 0 0 0 0 •• 3 1 1 2 0 1 8 0 October. _ 3.22 4.60 4.34 4.97 5.76 7.49 1934—January 48 48 37 0 0 42 November 3.46 4.89 4.54 5.35 6.22 7.98 February. _. 79 79 59 12 0 8 December 3.53 4.89 4.50 5.27 6.21 7.75 March 97 97 81 9 0 50 April 143 143 100 24 0 93 1934—January 3.50 4.67 4.35 5.00 5.72 7.01 May 103 103 61 26 0 39 February 3.32 4.48 4.20 4.70 5.24 6.27 June 123 123 102 0 0 183 March 3.21 4.24 4.13 4.55 5.12 6.26 July 217 2 217 91 19 0 157 April _. 3.12 4.11 4.07 4.43 4.97 6.01 August 180 3 180 18 0 79 May... _ 3.01 3.93 4.01 4.37 4.96 6.05 September.. 43 43 0 26 June... _ 2.94 3.73 3.93 4.30 4.96 6.06 July.. _. 2.85 3.75 3.89 4.28 4.93 6.13 August 2.99 3.81 3.93 4.34 5.09 6.49 ' Revised. September 3.20 3.84 3.96 4.42 5.17 6.57 i Includes issues of Federal land banks and Federal intermediate credit banks, not shown separately. Sept. 5 _. 3.12 3.87 3.93 4.35 5.15 6.50 a Includes $100,260,300 bonds of Federal Farm Mortgage Corporation Sept. 12 3.24 3.84 3.96 4.43 5.22 6.63 sold by public offering during month. Sept. 19 3.26 3.85 3.99 4.46 5.22 6.67 3 Includes $149,111,100 short-term bonds of Home Owners' Loan Cor- Sept. 26 3.23 3.81 3.96 4.42 5.12 6.49 poration sold by public offering during month. Sources.—For domestic issues, Commercial and Financial Chronicle; i Monthly data are averages of daily or weekly figures. for foreign issues (issues publicly offered) annual totals are as finally 1 Average, computed by Treasury Department, of yields of all out- reported by Department of Commerce, while monthly figures are as standing Treasury bonds except those due or callable within 8 years, compiled currently and are subject to revision. a Standard Statistics Co. Back figures—See (for figures of new issues—annual and quarterly 4 Moody's Investors' Service. basis) Annual Report for 1933 (table 112). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

651 OCTOBER 1934 FEDERAL RESERVE BULLETIN PRODUCTION, EMPLOYMENT, CAR LOADINGS, AND COMMODITY PRICES Index numbers; 1923-25 averaj;e=100. The terms "adjusted" and ''unadjusted" refer to adjustment for seasonal variation] Industrial production i * Construction contracts awarded (value) 2 Fac- Factory em- tory Freight-car ployment 3 pay loadings 4 * Com- Year and Total Manufactures Minerals Total Residential All other rolls 3 modmonth ity prices" Unad- Ad- Unad- Ad- Unad- Ad- Unad- Ad- Unad- Ad- Unad- Ad- Unad- Ad- Unad- Unad- Adjusted justed justed justed justed justed justed justed justed justed justed justed justed justed justed justed justed 1919 83 84 77 63 44 79 107 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 75 81 25 11 37 69 49 58 66 1931 February- 87 88 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 75 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 66 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 59 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 11 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 65 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 58 63 1933 January. . 64 65 63 63 71 '74 18 22 7 8 27 33 60 61 40 51 56 61 February. 64 63 62 61 76 79 16 19 7 8 23 27 61 62 40 51 54 60 March 60 59 58 56 74 '80 14 14 8 8 18 18 59 59 37 48 50 60 April 67 66 68 65 65 72 16 14 11 10 19 17 60 60 39 51 53 60 May- 79 '78 80 77 r 77 ' 79 19 16 13 11 24 20 63 63 43 55 55 63 June 91 91 92 93 ' 83 '85 21 18 14 13 27 23 67 67 47 61 62 65 July 95 99 97 101 '90 '91 24 21 13 13 32 28 72 73 51 66 65 69 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 58 71 November 72 72 70 70 84 81 42 48 12 13 66 76 76 76 56 60 59 71 December 69 75 67 73 SO 85 45 57 11 13 73 93 74 75 55 56 63 71 1934 Jannary_- 77 78 75 76 85 88 40 49 10 12 64 80 73 75 54 58 64 72 February. 83 81 82 80 88 91 38 44 10 12 60 70 78 78 61 61 64 74 March 86 84 85 82 91 100 33 33 12 11 50 51 81 81 65 63 66 74 April 88 85 89 85 81 90 36 32 14 12 54 49 82 82 67 60 62 73 May- 89 86 89 86 87 89 32 26 13 11 47 39 82 82 67 63 63 74 June 84 83 83 83 87 87 31 26 13 12 46 38 81 81 65 64 64 75 July 75 76 73 74 85 85 30 27 12 12 45 39 79 79 60 63 61 75 August. -. * 74 ,73 1-72 83 80 28 27 10 10 43 40 p 79 P 79 P62 63 59 76 v Preliminary. r Revised. * Average per working day. 1 For indexes of groups and separate industries see pp. 704-705; 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 1933 (table 115). 3 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 compiled by the Federal Reserve Board, see BULLETIN for June 1934, pp. 324-343. 4 For indexes of groups see p. 652; for back figures for total see Annual Report for 1933 (table 115) 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 by weeks) are given on p. 703. For back figures see Annual Report for 1933 (table 120). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

652 FEDERAL RESERVE BULLETIN OCTOBER 1934 MERCHANDISE EXPORTS AND IMPORTS [In millions of dollars] Merchandise exports i Month 1930 1931 1932 1933 January.. __ 411 250 150 121 February 349 224 154 102 March _ . 370 236 155 108 April 332 215 135 105 May 320 204 132 114 June _______ 295 187 114 120 July _ 267 181 107 144 August 298 165 109 131 September 312 180 132 160 October 327 205 153 193 November 289 194 139 December 275 184 132 Year . . 3, 843 2,424 1,611 OO OS Merchandise imports 2 Excess of exports 1934 1930 1931 1932 1933 1934 1930 1931 1932 1933 1934 172 311 183 136 96 136 100 66 15 25 37 163 282 175 131 84 133 67 49 23 18 30 191 300 210 131 95 158 69 26 24 13 33 179 308 186 127 88 147 24 29 9 17 33 160 285 180 112 107 155 35 24 20 7 6 171 250 173 110 122 136 44 14 4 -2 34 162 221 174 79 143 127 46 6 27 1 34 P 172 218 167 91 155 P 120 79 —2 17 -23 P 52 226 170 98 147 86 10 34 13 247 169 105 151 80 36 48 42 204 149 104 129 85 44 34 56 209 154 97 134 66 30 35 59 1,675 3,061 2,091 1,323 1,450 782 334 288 225 p Preliminary. 1 Including both domestic and foreign merchandise. 2 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] Index of stocks (end of 1933 1934 Index of salesl month) Aug. Apr. May June July Aug. Adjusted Without Adjusted Without Month for seasonal seasonal ad- for seasonal seasonal advariation justment variation justment Adjusted for seasonal variation 1933 1934 1933 1934 1933 1934 1933 1934 Total 61 62 63 64 61 59 Coal 74 68 69 66 63 58 Coke 61 50 58 56 43 39 January 60 69 49 57 58 66 52 59 Grain and grain prod- February 60 71 49 59 57 66 54 63 ucts 53 74 75 90 79 70 March 57 77 50 73 54 65 55 67 Livestock 56 52 52 54 84 107 Forest products 35 31 33 33 30 29 April 67 77 68 73 53 65 55 68 Ore 53 38 39 48 46 43 May 67 77 67 77 55 66 56 68 Miscellaneous 57 66 68 68 62 59 June 68 74 64 70 57 65 56 63 Merchandise i 69 65 65 65 65 65 July.__. 69 ' 72 48 51 60 64 56 '59 August 77 79 59 60 64 64 62 61 Without seasonal adjustment September 70 v 76 73 P79 70 73 October 70 77 70 77 Total 65 60 63 64 63 63 N"o vp,m bp.r 65 75 69 78 Coal 72 57 61 58 55 57 December 69 121 65 62 Coke 55 48 58 56 38 35 Grain and grain prod- Year 67 61 ucts__ 64 57 61 78 95 84 Livestock 50 48 49 46 70 95 1 Based throu r g > h o P u r t e l o im n i f n ig a u ry re . s of daily avera r g R e e s v a i l s e e s d — . with allowance F M O o r i e r s e c s e t l l p a r n o e d o u u c s ts 3 9 6 7 0 3 3 6 1 3 8 9 3 7 5 5 0 9 8 3 7 7 4 1 8 3 6 3 0 5 3 7 6 1 3 4 for changes from month to month in number of Saturdays and for 6 Merchandise i___ 69 67 67 65 64 65 national holidays: New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas. Adjustment for seasonal variation makes allowance in March and April for the effects * In less-than-carload lots. upon sales of changes in the date of Easter. Based on daily average loadings. Source of basic data: American Back figures.—See BULLETIN for November 1930, p. ( :6; Annual Report Railway Association. or 1933 (table 115). Back figures.—See BULLETIN for February 1931, pp. 108-110. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

653 OCTOBER 1934 FEDERAL RESERVE BULLETIN FOREIGN BANKING AND BUSINESS CONDITIONS AN ACT TO INCORPORATE THE BANK OF CANADA On September 17 the Canadian Minister of CONSTITUTION OF THE BANK Finance, pursuant to the provisions of the recent Bank of Canada Act providing for the 3. (1) There shall be established a bank to be called the Bank of Canada. establishment of a central bank in Canada, (2) When the capital stock of the bank has been offered the initial capital stock of $5,000,000 subscribed as hereinafter provided, the Minister shall for public subscription. The act provides that give public notice of the fact in the Canada Gazette and in the event of any of the shares not being- on the publication of such notice the shareholders shall become a body corporate. subscribed for by the public within a reason- 4. (1) The head office of the Bank shall be in the city able period the Minister shall subscribe for of Ottawa. such shares and that upon the subscription of (2) The Bank may establish branches and agencies all shares the Bank of Canada shall become a and appoint agents in Canada and may also, with the approval of the Governor in Council, establish body corporate. The full text of the Bank of branches and appoint agents elsewhere than in Canada. Canada Act is reprinted below: 5. (1) The Bank shall be under the management of a Board of Directors composed of a Governor, a Deputy Governor and seven directors. There may also be an 24-25 GEORGE V Assistant Deputy Governor who shall not as such be a member of the Board. CHAP. 43. AN ACT TO INCORPORATE THE BANK OF (2) In addition to the Members of the Board as CANADA constituted by subsection one of this section, the [Assented to 3rd July 1934] Deputy Minister of Finance or, in case of his absence of incapacity at any time, such other officer of the Depart- Whereas it is desirable to establish a central bank in ment of Finance as the Minister may nominate for the Canada to regulate credit and currency in the best time being, shall be, by virtue of his office or or such interests of the economic life of the nation, to control nomination, as the case may be, a member of the Board, and protect the external value of the national monetary but shall not have the right to vote. unit and to mitigate by its influence fluctuations in the 6. (1) The Governor and Deputy Governor shall be general level of production, trade, prices and employ- men of proven financial experience and each shall ment, so far as may be possible within the scope of devote the whole of his time to the duties of his office. monetary action, and generally to promote the eco- (2) No person shall hold office as Governor or Deputy nomic and financial welfare of the Dominion: Therefore, Governor or Assistant Deputy Governor, who— His Majesty, by and with the advice and consent of (a) is not a British subject; or the Senate and House of Commons of Canada, enacts (b) is a member of either House of Parliament or of a as follows: Provincial Legislature; or SHORT TITLE (c) is employed in any capacity in the public service of Canada or of any Province of Canada or holds any 1. This Act may be cited as the Bank of Canada Act office or position for which any salary or other remuneration is payable out of public moneys; or INTERPRETATION (d) is a director, officer, or employee oi any other bank or financial institution or has an interest as a 2. In this Act unless the context otherwise requires: shareholder in any bank or other financial institution; (a) ''Board of Directors" or "Board" means the or Board of Directors of the Bank of Canada; (e) has reached the age of seventy-five years. (b) "chartered bank" means a bank to which the Bank Act applies; (c) "director" means a member of the Board of MANAGEMENT Directors other than the Governor or the Deputy Governor; 7. (1) The Governor of the Bank shall be the chief (d) "Dominion notes" means notes payable to executive officer and shall on behalf of the Board have bearer on demand issued and outstanding, which on the the direction and control of the business of the Bank, day on which the Bank of Canada is authorized to com- with authority to act in connection with the conduct of mence business, constitute a direct liability of the the business of the Bank in all matters which are not by Dominion of Canada; this Act or by the by-laws of the Bank specifically re- (e) "meeting" means a special or general meeting served to be done b}' the Board or by the Executive of the shareholders; Committee or by a meeting of shareholders. (/) " Minister" means the Minister of Finance; (2) The Deputy Governor and the Assistant Deputy (g) "notes" means notes of the Bank of Canada Governor shall perform such duties as are assigned by payable to bearer on demand and intended for circula- the Board. tion; (3) In the event of absence or incapacity of the (h) "Receiver General" means the Receiver Genera Governor from whatever cause arising, the Deputy of Canada; Governor shall have and may exercise all the powers (i) "the Bank" means the Bank of Canada; and functions of the Governor. (j) "Treasury Board" means the Treasury Board as (4) In the event of absence or incapacity of both the constituted by the Department of Finance and Treas- Governor and the Deputy Governor, the Board o ury Board Act. Directors shall authorize the Assistant Deputy Gover- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

654 FEDERAL RESERVE BULLETIN OCTOBER 1934 nor or one of the members of the Board to act as the not thereafter during the period of his office have an Governor for the time being, but no such person shall interest, either directly or indirectly, as a shareholder in have authority to act as Governor for a period exceed- a chartered bank. ing one month without the approval of the Governor in (3) No person shall be elected or shall continue to Council. hold office as a director, who— 8. (1) The Governor, Deputy Governor and Assist- (a) is not a British subject ordinarily resident in ant Deputy Governor shall each be appointed as Canada; or hereinafter provided for a term of seven years or, in (b) is employed in any capacity in the public servthe case of the first Governor, Deputy Governor and ice of Canada or of any Province of Canada or holds Assistant Deputy Governor, for such shorter period as any office or position for which any salary or other the Governor in Council may determine. remuneration is payable out of public moneys; or (2) The first Governor, Deputy Governor and Assist- (c) has reached the age of seventy-five years. ant Deputy Governor shall be appointed and their (4) If any director, in the opinion of the Board, salaries shall be fixed by the Governor in Council and becomes permanently incapacitated, he may be rethereafter appointments shall be made bj^ the directors moved from office by resolution of the Board approved with the approval of the Governor in Council. by the Governor in Council. (3) Except as provided in the next preceding sub- 11. The directors shall be entitled to receive for section the Governor, Deputy Governor and Assistant attendance at directors' meetings and executive com- Deputy Governor shall, subject to the approval of the mittee meetings, such fees as may be fixed by the Governor in Council, receive such salaries as the direc- Board and approved at a general meeting, but the tors from time to time determine, but no such remunera- aggregate amount of the fees paid to all directors, tion shall be in the form of a commission or be com- exclusive of expenses, shall not exceed twenty thousand puted by reference to the income or profits of the Bank. dollars in any year. (4) The Governor, the Deputy Governor and the 12. The members of the Board shall select a chair- Assistant Deputy Governor shall on the expiry of their man of the Board from amongst their number. terms of office be eligible for re-appointment. (5) The Governor, Deputy Governor and Assistant EXECUTIVE COMMITTEE Deputy Governor shall each hold office for the aforesaid term during good behaviour. 13. (1) There shall be an Executive Committee of the Board, consisting of the Governor, the Deputy DIRECTORS Governor and one director selected by the Board. (2) In addition to the Members of the Executive 9. (1) Notwithstanding anything contained in sec- Committee as constituted by subsection one of this section ten of this Act, the first, or provisional, directors of tion, the Deputy Minister of Finance or, in case of his the Bank shall be the following members of the Civil absence or incapacity at any time, such other officer Service of Canada, namely, The Deputy Minister of of the Department of Finance as the Minister may Finance; The Counsellor of the Department of External nominate for the time being shall be by virtue of his Affairs; The Comptroller, Government Guarantee office or of such nomination, as the case may be, a Branch; The Comptroller of the Treasury; The Comp- member of the Executive Committee, but shall not have troller of Currency; The Director of Estimates and As- the right to vote. sistant Secretary to the Treasury Board, and The Solici- (3) The Executive Committee shall be competent to tor to the Treasury, who shall remain in office until deal with any matter within the competence of the replaced by directors duly elected in their stead at the Board but every decision of the committee shall be first general meeting of shareholders. The said first or submitted to the Board at its next meeting. provisional directors shall serve without remuneration. (4) Except when the Board is in session the Execu- (2) At the first general meeting of shareholders tive Committee shall determine the minimum rates at aforesaid, directors shall be elected for terms to run as which the Bank is prepared to discount or rediscount follows: one until'the third annual general meeting, bills or to make advances and the Bank shall at all two until the fourth annual general meeting, twro until times make public the rates at which it is prepared to the fifth annual general meeting and two until the sixth discount or rediscount bills or to make advances. annual general meeting, respectively. (5) The Executive Committee shall keep full minutes (3) Thereafter directors shall be elected by the share- of its proceedings, which shall be submitted to the holders at annual general meetings and shall hold office Board at its next meeting. for terms of five years. 14. No action or decision of the Board of Directors, (4) In the event of a vacancy amongst the directors or of the Executive Committee, shall have any effect the Board shall appoint a qualified person to hold office unless the same is concurred in by the Governor, or in until the next annual general meeting, when the share- his absence or incapacity, by the Deputy Governor. holders shall elect a person to fill the vacancy, for the remainder of the term. BANK STAFF (5) The directors shall on the expiry of their terms of office be eligible for re-election. 15. (1) Such other officers, clerks and employees 10. (1) No person except a shareholder who is the may be employed as in the opinion of the Executive registered owner of ten shares of the capital stock and Committee may be necessary. who has paid all calls thereon shall be elected or shall (2) In the case of officers, clerks and employees of continue to hold office as a director. the Bank who at the date of appointment were officers, (2) The directors shall be selected from diversified clerks or employees of the Civil Service of Canada, the occupations, but no person shall be eligible to be a salaries to be paid by the Bank shall be at rates not director who is a director, officer or employee of a less than the rates which such persons were receiving chartered bank and any person nominated for election in the Civil Service. as a director who is a shareholder of a chartered bank (3) Any officer, clerk or employee mentioned in subshall if elected divest himself of ownership of his shares section two of this section who was a contributor under within three months of the date of his election and shall the provisions of the Civil Service Superannuation Act, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 1934 FEDERAL RESERVE BULLETIN 655 chapter twenty-four of the Revised Statutes of Canada, shall be offered by the Minister at not less than par for 1927, may continue as a contributor under the pro- public subscription in Canada and shall be allotted by visions of the said Superannuation Act for a period him to persons eligible to hold shares, in such manner not exceeding one year after the date of his appointment as he may in his discretion determine. by the Bank, and shall during such period continue his (3) In the event of any of the shares (whether of the contributions to the Civil Service Superannuation original or any subsequent issue) not being subscribed Fund and the Bank shall during the said period con- for by the public within a reasonable period the Minister tribute to the said Fund a like amount. Subject to the shall subscribe for such shares, and notwithstanding any provisions of subsection four of this section, at the other provision of this Act, payment for the same shall expiration of one year after the date of the appointment be made out of the Consolidated Revenue Fund. by the Bank of any such officer, clerk or employee his (4) The Minister shall from time to time offer shares benefits under the provisions of the said Superannua- held by him or shares representing any increase of tion Act shall be calculated and determined as of the capital for subscription by the public at not less than date of the expiration of the said year as if he had at par, whenever in the opinion of the Minister it is dethat time retired from the Civil Service by reason of sirable to do so. abolition of his office, in which case the enjoyment of (5) The sum of twelve dollars and fifty cents, or such the said benefits shall be deferred until such time as he greater amount as the Minister may determine, shall be leaves the service of the Bank. payable in respect of each share on application, and the (4) Upon the said officer, clerk or employee be- balance shall be paid in one or more instalments within coming a contributor to or participant in any pension such period thereafter, not exceeding twelve months, as scheme which the Bank may establish he may elect may be fixed by the Minister. either— (6) Shares held by the Minister shall be registered (i) to have his benefits under the provisions of in his name and he shall be entitled to vote in respect the said Superannuation Act calculated and of such shares. determined as at the date of his becoming a con- (7) The liability of every shareholder shall be limited tributor to or participant in any pension scheme to the amount for the time being unpaid in respect of which the Bank may establish or at the expiration shares held by such shareholder. of one year from the date of his appointment as (8) Shares may be held only by or for the beneficial aforesaid, whichever shall first occur, in which ownership of British subjects ordinarily resident in case the enjoyment of the said benefits shall be Canada, or corporations organized under the laws of deferred until such time as he leaves the service the Dominion of Canada or of any province and conof the Bank; or trolled by British subjects ordinarily resident in Canada (ii) to waive his right to any payment or benefit but not more than fifty shares shall be held by or for the under the said Superannuation Act and in that benefit of any one person other than the Minister. case his period of service in the Civil Service shall (9) The Bank shall open and maintain one or more be counted as service with the Bank for the pur- share registry offices at places to be designated by the poses of the Bank's pension scheme to the extent Board. that such service would have counted under the 18. (1) No shares of the capital stock of the Bank said Superannuation Act. The Governor in Coun- shall be held by or for the benefit of any chartered bank cil and the Bank may enter into an agreement as to or any director, officer, clerk or employee of any such the amount to be paid to the Bank with reference bank, and no chartered bank shall have any interest, to the assumption by the Bank of liability under directly or indirectly or through the medium of any its pension scheme with respect to the said period officer, clerk, employee or other person, in any share of of service in the Civil Service. The Minister may the Bank. pay the amount agreed upon out of any unappro- (2) On the last day of January in each year the Genpriated moneys in the Consolidated Revenue Fund, eral Manager of every chartered bank shall transmit to which shall be recorded as a payment from the the Minister a statement in the form of Schedule B to said Superannuation Fund, and the Bank shall pay this Act that he has duly inquired and has found that the said amount into its Pension Fund. no share of the Bank nor any interest therein is or has (5) The Governor in Council may make such regula- been during the preceding year held by or for the chartions as may be deemed necessary to give effect to the tered bank contrary to the provisions of this section, provisions of subsections three and four of this section. or as the case may be. (6) The Board may by by-law establish a pension 19. If shares are held by a person not eligible to hold fund for the officers, clerk and employees of the Bank shares or if shares in excess of fifty are held by one perand their dependents, and may contribute to it out of son, the Governor shall require the shareholder to transthe funds of the Bank, and such pension fund shall be fer or dispose of the shares or the shares in excess of invested in securities in which a trust company may fifty, as the case may be. If a shareholder fails to cominvest under the Trust Companies Act. ply with this requirement within three months, the 16. Every director, officer, clerk and employee of the shares in question shall ipso facto on the expiration of Bank shall before entering upon his duties take before a three months from the mailing at Ottawa by registered Justice of the Peace or a Commissioner for taking affi- mail of such requirement in the form of a notice in davits, an oath of fidelity and secrecy in the form pre- writing by the Minister to such shareholder be forfeited scribed in Schedule A to this Act. to the Crown and shall be registered in the name of the Minister without further proceedings or formality, and CAPITAL AND SHAKES may be sold by the Minister and the proceeds of any such sales shall be deposited in the Consolidated Rev- 17. (1) The capital of the Bank shall be five million enue Fund. dollars but may be increased from time to time pursuant to a resolution passed by the Board and ratified COMMENCEMENT OF BUSINESS at a meeting of shareholders and approved by the Parliament of Canada. 20. (1) Whenever the capital stock of the Bank has (2) The capital shall be divided into shares of fifty been subscribed and payment in money made to the dollars each, represented by share certificates, which amount of twelve dollars and fifty cents per share, or Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

656 FEDERAL RESERVE BULLETIN OCTOBER 1934 I such larger amount as the Minister determines, th< bills of exchange or promissory notes, or of Canadian Minister, when authorized by the Governor in Council, municipal securities, or of securities issued by a school may issue a certificate authorizing the Bank to com- corporation or parish trustees, or of securities issued mence business on a date to be fixed therein. pursuant to the statutes of a province making pro- (2) The Bank shall not issue notes or otherwise engage vision for the payment thereof and the interest thereon in business until the date fixed in such certificate except by the province, or of gold or silver coin or bullion, or to do what is necessary or advisable to enable it to com- documents of title relating thereto; mence business on the said date. (J) make loans or advances for periods not exceeding six months to the Dominion Government or the govern- BUSINESS AND POWERS OF THE BANK ment of any province on the pledge or hypothecation of readily marketable securities issued or guaranteed by 21. (1) The Bank may the Dominion of Canada or any province; (a) buy and sell gold, silver, nickel and bronze coin (k) make loans to the Dominion Government or the and gold and silver bullion; government of any province, but such loans out- (b) effect transfers of funds by telegram, letter or standing at any one time shall not, in the case of the other method of communication, and buy and sell Dominion Government, exceed one-third of the estitransfers effected by such means, trade acceptances, mated revenue of such government for its fiscal year, bankers' acceptances, bankers' drafts, and bills of and shall not in the case of any provincial government exchange drawn in or on places outside of Canada and exceed one-fourth of such government's estimated having a maturity not exceeding ninety days excluding revenue for its fiscal year; and such loans shall be days of grace, or not exceeding ninety days after sight repaid before the end of the first quarter after the end excluding days of grace, from the date of acquisition by of the fiscal year of such government; the Bank; (1) for the purpose of its open market operations, (c) buy and sell or rediscount short term securities buy and sell in the open market from or to any person, issued or guaranteed by the Dominion of Canada or either in or outside of Canada, securities, cable transany province, having a maturity not exceeding two fers, bankers' acceptances, and bills of exchange of the years from the date of acquisition by the Bank; kinds and maturities defined in, and subject to the (d) buy and sell securities issued or guaranteed by limitations, if any, contained in, paragraphs (b), (c), the Dominion of Canada or any province, having a (d), (e), (g) and (h) of this subsection with or without maturity exceeding two years from the date of acquisi- the endorsement of a chartered bank; tion by the Bank but the Bank shall at no time hold such (m) accept from the Dominion Government or the securities (exclusive of securities transferred to the government of any province or from any chartered Bank under paragraph (c) of subsection three of section bank or from any bank incorporated under the Quebec tw^enty-five) of a par value in excess of three times the Savings Banks Act deposits which shall not bear inamount of the paid-up capital of the Bank; terest; (e) buy and sell short-term securities issued by the (n) open accounts in a central bank in any other United Kingdom, any British Dominion, the United country or in the Bank for International Settlements States of America, or France, having a maturity not and act as agent, depository or correspondent of such exceeding six months from the date of acquisition by other central banks or the Bank for International the Bank; Settlements; (/) buy and sell securities issued by the United King- (o) acquire by purchase or lease and hold real or dom or the United States of America, having a maturity immovable property for the actual use and occupation exceeding six months from the date of acquisition by of the Bank in connection with its business and sell and the Bank, but the Bank shall at no time hold such dispose of the same; securities in excess of one-half of the amount of the (p) do anything ancillary to all or any of the above paid-up capital of the Bank; purposes. (g) buy and sell or rediscount bills of exchange and (2) The Bank may acquire from any chartered bank promissory notes endorsed by a chartered bank drawn and hold any warehouse receipt, bill of lading and other or issued in connection with the production or market- security, held by such chartered bank pursuant to the ing of goods, wares and merchandise as defined in provisions of The Bank Act, as collateral security for The Bank Act, excepting those mentioned in paragraph the repayment of any bill of exchange or promissory (h) of this subsection, and having a maturity not note acquired by the Bank under the provisions of the exceeding ninety days excluding days of grace, or not next preceding subsection; and the Bank may exercise exceeding ninety days after sight excluding days of every right and remedy in respect of such collateral grace, from the date of acquisition by the Bank; security as could have been exercised by the chartered (h) buy and sell or rediscount bills of exchange and bank aforesaid. promissory notes endorsed by a chartered bank, drawn 22. The Bank shall not, except as authorized by this or issued in connection with the production or market- Act, ing of products of agriculture, the forest, the quarry (a) engage or have a direct interest in any trade or and mine, or the sea, lakes and rivers, as defined in business whatsoever; The Bank Act, and having a maturity not exceeding (6) purchase its own stock or the shares of any other one hundred and eighty days excluding days of grace bank except the Bank for International Settlements or from the date of acquisition by the Bank: Provided make loans upon the security thereof; that the Bank may by regulation limit to a percentage (c) lend or make advances upon the security of any of its total assets the amount of such paper having real or immovable property; provided that in the event a maturity in excess of ninety days excluding days of of any claims of the Bank being in the opinion of the grace but not exceeding one hundred and eighty days Board endangered, the Bank may secure itself on any excluding days of grace, from the date of acquisition real property of the debtor or any other person liable by the Bank; and may acquire such property, which shall, however, (i) make loans or advances for periods not exceeding be resold as soon as practicable thereafter; six months to chartered banks or to banks incorpo- (d) make loans or advances without security; rated under the Quebec Savings Banks Act on the pledge (e) accept deposits for a fixed term or pay interest or hypothecation of the foregoing classes of securities, on any moneys deposited with the Bank; Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

657 OCTOBER 1934 FEDERAL RESERVE BULLETIN (/) allow the renewal of maturing bills of exchange, (3) On the day on which the Bank is authorized to promissor}^ notes or other similar documents purchased commence business the Minister shall transfer to the or discounted by or pledged to the Bank, provided bank— that the Board may make regulations authorizing in (a) gold held by the Minister for redemption of special circumstances not more than one renewal of Dominion notes; any such bill of exchange, promissory note or other (b) silver held by the Minister for redemption of document. Dominion notes valued at the market price of the fine 23. (1) The Bank shall act as fiscal agent of the silver content thereof; Government of Canada without charge and, subject to the provisions of this Act, by agreement, may also (c) securities of the Dominion of Canada bearing act as banker or fiscal agent of the government of any interest at three per centum per annum, payable halfprovince. yearly and having a maturity not exceeding five years, valued at par; (2) The Bank, if and when required by the Minister so to do, shall act as agent for the Government of to the amount of Dominion notes outstanding on that Canada in the payment of interest and principal and day, except notes issued under the authority of the generally in respect of the management of the public Finance Act. debt of Canada. (4) On and after the day on which the Bank is (3) The Bank shall not make any charge for cashing authorized to commence business the Bank shall be any cheque drawn on the Receiver General or on his responsible for the redemption of all Dominion notes account or for cashing any other instrument issued as then issued and outstanding and such notes shall be authority for the payment of money out of the Consoli- and continue to be legal tender. dated Revenue Fund or upon any cheque drawn in favour (5) On the day on which the Bank is authorized to of the Government of Canada or any department commence business, the chartered banks shall repay thereof and tendered for deposit in the Consolidated all advances then outstanding under the Finance Act. Revenue Fund. (6) The Minister, for the purposes of paragraph (c) of subsection three of this section, is authorized to NOTE ISSUE issue securities under the provisions of The Consolidated 24. (1) On and after the day on which the Bank is Revenue and Audit Act, 1931, and payment of the authorized to commence business the Bank shall, except principal of and interest on such securities shall be as provided in The Bank Act, have the sole right to made out of the Consolidated Revenue Fund. issue notes payable to bearer on demand and intended for circulation in Canada and may, subject to the pro- RESERVES visions of section twenty-six of this Act, issue such notes to any amount. Such notes shall be legal tender, and 26. (1) The Bank shall always maintain a reserve, shall be the first charge upon the assets of the Bank. as hereinafter provided, as security^ against its out- (2) It shall be the duty of the Bank to make adequate standing notes and deposit liabilities. arrangements for the issue of its notes at its head office (2) The reserve required by this section to be mainand at its branch offices and agencies in Canada, and tained shall consist of gold coin and bullion in the to supply such notes as required for circulation in unrestricted ownership of the Bank equal to an amount Canada. not less than twenty-five per centum of the notes (3) Notes of the Bank shall be in such denominations and deposit liabilities aforesaid; and may in addition as the Governor in Council from time to time determines include— and shall be signed by two persons nominated by the (a) silver bullion received from the Minister under Board. Facsimiles printed from engravings may be the next preceding section or purchased under the substituted for signatures in the proper handwriting authority of subsection four hereof, valued at the of one or both persons nominated to sign, but if both market price of the fine silver c ntent thereof; and of the signatures are printed then a distinguishing (b) foreign exchange, which shall mean— device and serial number shall be printed on each note (i) Balances with the Bank of England, the after the notes have been delivered by the printer and Bank for International Settlements, the Federal engraver to the Bank and wrhile in the custody of the Reserve Bank of New York, and a central bank officers of the Bank. in any country whose currency by law and in fact (4) The form and material of the notes shall be is convertible on demand at a fixed price into subject to approval by the Minister: Provided that exportable gold; notes in either the English or the French language shall (ii) Treasury bills or other obligations of the be available as required. United Kingdom or the United States of America (5) The Bank shall not re-issue notes which are torn, having a maturity not exceeding three months partially defaced or soiled and provision may be made from the date of acquisition by the Bank; by the Bank for the disinfection and sterilization of (iii) Bills of exchange haying a maturity not notes before re-issue. exceeding ninety days excluding days of grace, or not exceeding ninety days after sight excluding REDEMPTION OF NOTES days of grace from the date of acquisition by the Bank payable in London or New York or in a 25. (1) The Bank shall sell gold to any person who country whose currency by law and in fact is makes demand therefor at the head office of the Bank convertible on demand at a fixed price into and tenders the purchase price in legal tender, but only exportable gold, in the form of bars containing approximately four hundred ounces of fine gold. less any liabilities of the Bank payable in the currency (2) The Governor in Council, from time to time and of the United Kingdom, the United States of America, for such period as he may deem desirable, may suspend or any country whose currency is by law and in fact the operation of the next preceding subsection and convertible on demand at a fixed price into exportable remove such suspension. gold. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

658 FEDERAL RESERVE BULLETIN OCTOBER 1934 (3) At the request in writing of the Board, the bank is hereby guaranteed, and the Governor in Council, Governor in Council may suspend the operation of this on the recommendation of the Minister of Finance, section insofar as it requires the Bank to maintain a shall authorize payment out of the Consolidated Revreserve of gold equal to an amount not less than twenty- enue Fund of such moneys as may be necessary to five per centum of its notes and deposit liabilities. implement such guarantee. Such suspension shall be for such period not exceeding (7) Every bank incorporated under the Quebec sixty days as may be specified by the Governor in Savings Banks Act shall maintain against its deposit Council, but on the further request in writing of the liabilities such reserves in the form of notes of the Board may be extended from time to time for further Bank or deposits with the Bank or a chartered bank as periods not exceeding sixty days each, provided, how- may be deemed to be sufficient by the Bank and shall ever, that no such suspension shall continue for a furnish such information as may be required by the period longer than one year without the sanction of Bank from time to time to satisfy it that such reserves Parliament. are so maintained. (4) The Bank shall during the years 1935, 1936 and 1937 purchase and hold newly-mined Canadian silver SURRENDER OF GOLD as and when required so to do by the Minister but the Bank shall never be required to purchase more than 28. (1) Every chartered bank shall, on the day on 1,671,802 fine ounces in any year. which the Bank is authorized to commence business, transfer to the Bank all gold coin or bullion owned and held by it in Canada. RESERVE OF CHARTERED BANKS (2) The Governor in Council may from time to time 27. (1) Every chartered bank shall on and after the thereafter require every chartered bank or every other day on which the Bank is authorized to commence person to transfer to the Bank any or all gold coin or business maintain a reserve of not less than five per bullion held in Canada which is owned by such charcentum of its deposit liabilities within Canada and tered bank or by such other person; and the Governor such reserve shall consist of a deposit with the Bank in Council may authorize all measures deemed necesand of notes of the Bank held by such bank. sary or expedient to enforce any such transfer and to (2) For the purposes of this section, every chartered impose and recover penalties in respect of any neglect bank shall make a return to the Bank to be signed by or refusal to make any transfer so required. the chief accountant or acting chief accountant and by the general manager or acting general manager of such VALUATION OF GOLD bank, showing the amount of its deposit liabilities 29. Whenever gold is sold by, transferred to, held within Canada and also the amount of its deposit with as reserve by, or deposited with the Bank pursuant to the Bank and the amount of the notes of the Bank held bjr such bank, at the end of each juridical day of the subsections one or three of section twenty-five, section twenty-six, or section twenty-eight of this Act, month last preceding the date of the return, and showthe value of the said gold shall be computed on the ing for the month the daily average amount of such basis established by the Currency Act at the date of deposit liabilities and of its deposit with the Bank and the relevant transaction. of the notes of the Bank held by such bank. Such return shall be delivered or transmitted to the Bank 30. Any profits resulting from the sale by the Bank at the same time as the return to the Minister, pur- of gold coin and bullion transferred to the Bank pursuant to section one hundred and twelve of The Bank suant to subsection three of section twenty-five, or Act, is transmitted or delivered. section twenty-eight of this Act, or from an increase in the value of such gold resulting from any change (3) The daily average amount of deposit liabilities in the monetary standard of Canada shall be paid by within Canada for each chartered bank shall be the the Bank to the Receiver General for the Consolidated basis of determining the amount of the reserve to be Revenue Fund: Provided, however, that the aforesaid maintained by such bank during the month next folprovisions of this section shall not apply in the case of lowing the month in which such return was made. gold transferred under subsection one of section twenty- (4) If any chartered bank knowingly makes default eight, if the Governor in Council is satisfied that the in complying with the requirements of this section, it said gold was at the time of the transfer being held by shall be liable to a penalt}^ at the rate of ten per centum a chartered bank against liabilities elsewhere than in per annum of the amount of deficiency for each day Canada, and in such case the said profit shall belong on which there is a deficiency in the amount of the to the chartered bank. reserve maintained by the chartered bank, and such penalty shall be payable to the Bank and recoverable PROFITS OF THE BANK by it by civil action. " (5) For the purpose of this section the Bank may 31. The Bank shall establish a rest fund and after authorize the Inspector General of Banks or one of its making such provision as the Board thinks proper for own officers to make an inspection of the books, ac- bad and doubtful debts, depreciation in assets, pension counts and documents of any chartered bank, and the funds and all such matters as are properly provided for chartered bank shall give the Inspector General or such by banks and after deducting an amount equal to four officer access to the books, accounts and documents of and one-half per centum of the paid-up capital which the bank for such purpose, and if the Inspector General may be utilized for the payment of cumulative divior officer is obstructed or delayed in making an in- dends at a rate of four and one-half per centum per spection the chartered bank shall be guilty of an annum, payable half-yearly, the ascertained surplus offence and liable on summary conviction to a fine of available from the operations of the Bank during each one hundred dollars for each ana every day during financial }Tear shall be applied by the Board as follows: which the obstruction or delay continues. (a) If the rest fund of the Bank is less than the paid- (6) In the event of the property and assets of the up capital, one-third of such surplus shall be allocated Bank being insufficient to pay its debts and liabilities, to the rest fund and the residue shall be paid to the and if the Bank suspends payment of any of its lia- Receiver General and placed to the credit of the Conbilities, the deposit made hereunder by every chartered solidated Revenue Fund; Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

659 OCTOBER 1934 FEDERAL RESERVE BULLETIN (6) If the rest fund is not less than the paid-up Acting Chief Accountant, and by the Governor or the capital but is less than twice the paid-up capital, one- person then acting as Governor, and by the Deputy tenth of such surplus shall be allocated to the rest fund Governor or the Assistant Deputy Governor or other and the residue shall be paid to the Receiver General principal officer next in authority to the Assistant and placed to the credit of the Consolidated Revenue Deputy Governor at the time at which the declaration Fund; is signed. (c) If the rest fund is not less than twice the paid-up (6) The Governor in Council may from time to time, capital, the whole of such surplus shall be paid to the as he deems necessary, amend the form of Schedule C Receiver General and placed to the credit of the Con- to this Act. solidated Revenue Fund. 34. (1) The fiscal year of the Bank shall be the calendar year. (2) Within six weeks after the end of each fiscal year, the Bank shall transmit to the Minister a state- 32. (1) For the purpose of auditing the affairs of the ment of its accounts for the fiscal year, signed by the Bank, the Minister shall appoint two auditors, eligible Governor, the Deputy Governor and the Chief Accountto be appointed as auditors of a chartered bank, who ant of the Bank and certified by the Auditors, in the shall continue to act as auditors until the first annual form prescribed by the by-laws of the Bank. general meeting. (3) A copy of the accounts so signed and certified (2) The shareholders at each annual general meeting shall be forthwith published in the Canada Gazette, and shall appoint two auditors, eligible to be appointed as if Parliament is then sitting, shall within fourteen days auditors of a chartered bank, but no person shall be after the receipt thereof by the Minister be laid before eligible for appointment if he or any member of his Parliament, or if Parliament is not sitting, it shall be firm has been auditor for two successive years during laid before Parliament within fourteen days after the the three next preceding years. commencement of the next ensuing session thereof. (3) If any vacancy occurs in the office of auditor of 35. The Bank shall within sixty days after the end the Bank, notice thereof shall forthwith be given by the of each fiscal year transmit to the Minister a list of the Bank to the Minister, who thereupon shall appoint some names, addresses and descriptions of the shareholders other auditor eligible to be appointed as an auditor of of the Bank at the end of the year, and of the number of a chartered bank to serve until the next annual general shares then held by each shareholder. Such list shall, if meeting. Parliament is then sitting, be laid before Parliament by (4) No director or officer of the Bank and no member the Minister within fourteen days after the receipt of a firm of auditors of which a director is a member thereof, or if Parliament is not sitting, it shall be laid shall be eligible for appointment as an auditor. before Parliament within fourteen days after the com- (5) The Minister may from time to time require the mencement of the next ensuing session thereof. auditors to report to him upon the adequacy of the procedure adopted by the Bank for the protection of its MEETINGS creditors or shareholders and as to the sufficiency of their own procedure in auditing the affairs of the Bank; 36. (1) The annual general meeting of shareholders and the Minister may, at his discretion, enlarge or shall be held on the last Tuesday of February in each extend the scope of the audit, or direct that any other year at the head office of the Bank. procedure be established or that any other examination (2) A special general meeting of the shareholders may be made by the auditors or by the Inspector-General of be called at any time by the Board and shall be called Banks as the public interest may seem to require. by the Board whenever a request for such meeting is (6) A copy of every report made by the auditors to made in writing by not less than one hundred sharethe Bank under this section shall be transmitted to the holders, holding not less than one thousand shares. Minister by the auditors at the same time as such report (3) Every shareholder shall have one vote for. each is transmitted to the Bank. share registered in his name for at least three months before the date of the meeting, but no person, other than the Minister, shall vote for more than fifty shares. (4) The voting of the shareholders shall, in the case 33. (1) The Bank shall as soon as practicable after of the election of directors, be by ballot. No person the close of business on Wednesday of each week, make shall vote by proxy except that any shareholder may up and transmit to the Minister in the form of Schedule give to the Minister, in writing, instructions as to the C to this Act a statement of its assets and liabilities as manner in which he desires to vote on any business of at the close of business on that day. the meeting. In any such case the Minister shall inform (2) A copy of every such statement shall be published the scrutineers appointed at the meeting of the instrucin the next succeeding issue of the Canada Gazette. tions so received and the scrutineers shall record the (3) The Bank shall also as soon as practicable after vote of each such shareholder in accordance with the the close of business on Wednesday of each week, make instructions so given. up and transmit to the Minister a statement of the (5) Notice of every general meeting of shareholders amount of its notes in circulation on each business day shall be given to every shareholder in writing, and such during the preceding seven day period. notice shall be accompanied by notice of all business to (4) The Bank shall on or before the seventh day of be transacted at such meeting, including the names if each month make up and transmit to the Minister in any of persons nominated as directors, and no perspn the form of Schedule C to this Act a statement of its shall be eligible to be elected as a director unless notice assets and liabilities on the last business day of the of his nomination has been so given. preceding month. (5) Every return required under the last preceding OFFENSES AND PENALTIES subsection shall be accompanied by declarations which shall be a part of the return, and the declarations shall 37. Every person who holds office or continues to be in the form set forth in Schedule C to this Act, and hold office as a Governor, Deputy Governor, Assistant shall be signed by the Chief Accountant or by the Deputy Governor or director of the Bank, knowing that Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

660 FEDERAL RESERVE BULLETIN OCTOBER 1934 he is not eligible for such office, shall be guilty of an which the Bank is authorized to commence business not indictable offence and liable to imprisonment of not exceeding one hundred thousand dollars, or in connecmore than three years and not less than three months. tion with the issue of increased capital stock, shall be 38. Every director, officer or auditor of the Bank who paid out of any unappropriated moneys in the Consoliverifies any statement, account or list required to be dated Revenue Fund, and shall be recoverable from the furnished to the Minister pursuant to the provisions of Bank as a debt due to the Crown at any time after the this Act, or who has to do with the delivering or trans- Bank has been authorized to commence business. mitting of the same to the Minister, knowing the same to be false in any material particular, shall be guilty of an indictable offence and liable to imprisonment for not more than five years and not less than six months. 43. (1) The Governor in Council shall make by-laws 39. Any officer of a chartered bank who transmits not repugnant to the provisions of this Act with respect any statement to the Minister pursuant to the provi- to— sions of this Act or who has to do with preparing or (a) the keeping of stock books, the recording of subtransmitting the same to the Minister knowing the scriptions and the enforcement of payment by subsame to be false in any material particular, shall be scribers and shareholders of instalments of capital due guilty of an indictable offence and liable to imprison- the Bank from such persons, and generally all questions ment for not more than two years and not less than relating to the obligations of the Bank to the sharethree months. holders and of the shareholders to the Bank; 40. Any officer of the Bank or any officer of a char- (b) the transfer and transmission of shares; tered bank.or any other person who fails or omits to (c) the declaration and payment of dividends; comply with any provision of this Act shall be guilty (d) the calling of meetings of shareholders and of the of an offence and, unless otherwise provided by this Board and of the Executive Committee, and what Act, shall be liable on summary conviction to a fine of number of persons shall constitute a quorum in each not less than one hundred dollars and not more than case, and how questions considered at such meetings five hundred dollars. shall be determined, and the nomination of directors and auditors, and generally as to the procedure govern- LIQUIDATION OR WINDING UP ing such meetings; and such by-laws may provide for the nomination of directors before any annual general 41. No statute relating to the insolvency or winding meeting and what constitutes such nomination; up of any corporation shall apply to the Bank and in no (e) the duties and conduct of officers, clerks and case shall the affairs of the Bank be wound up unless employees of the Bank; Parliament so provides; provided, however, that if (/) the form of the annual statement of accounts; provision is made for winding up the Bank the notes of (g) generally as to the management and disposition the Bank outstanding shall be the first charge upon the of the stock, property and undertakings of the Bank. assets and in no case shall the shareholders receive any (2) The Board may with the approval of the Governor payment in excess of the paid-up capital of the Bank in Council amend or repeal such by-laws or make others and accrued dividends, if any. with respect to the matters mentioned in subsection one hereof. ORGANIZATION EXPENSES (3) Every by-law and every amendment or repeal 42. All moneys required to be expended in connection thereof shall take effect when published in the Canada with the organization of the Bank before the day on Gazette, CUBAN CURRENCY LEGISLATION A new Cuban decree-law (No. 410), which ART. III. The Secretary of the Treasury shall estabredefines the legal tender powers of currency lish an office for the purchase of gold and shall issue in Cuba, became effective August 13, 1934. the necessary regulations governing the form and quantities in which the metal shall be purchased,-the This decree-law supersedes Decree-Law No. respective analysis and assays and the payment to the 256 of May 25, 1934, and Decree-Law No. 259 sellers, which in the case of coins of legal tender and of May 28, 1934, translations of which were others of the same fineness shall be made within 3 days published in the FEDERAL RESERVE BULLETIN following delivery. ART. IV. National gold coins of the fineness and for July 1934, pages 468-471. A translation of weight established by the law of October 29, 1914, and Decree-Law No. 410, omitting the preamble, is gold coin of the United States of America shall not given below. henceforth be lawful money and shall be considered as bullion and acquired by the Cuban Government by DECREE-LAW NO. 410 weight at the price fixed in Article II of this decree-law. ART. V. National gold coins, national silver coins of ARTICLE I. The fine gold content of the national 1 peso, and gold coins and paper currency constituting monetary unit, the peso, is reduced and the peso shall lawful money of the United States of America shall have henceforth a weight of 0.9873 gram with 0.8886 be unlimited legal tender. Subsidiary silver coins gram of fine gold. shall be legal tender in the proportion of 8 percent of ART. II. The Government will purchase by weight the sum to be paid and full legal tender for the settlemetallic gold which is offered to it in any form, at the ment of obligations not exceeding 10 pesos. Fractional rate of 35 pesos per Troy ounce of fine gold with no nickel coins shall be legal tender for payments not deduction other than 1 percent for costs of administer- exceeding 1 peso. All obligations payable in money, ing this decree-law when the metal is 0.900 fine and whether contracted before or after the effective additional charges when it is necessary to refine metal date of the present law, shall be settled in the particular of lower fineness. I currency agreed upon. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

661 OCTOBER 1934 FEDERAL RESERVE BULLETIN ART. VI. National silver and nickel coins shall be ART. X. Any gold that may be seized by the authorunderstood to be those at present in circulation, the ities because of its having been the object of forbidden fineness, weight, size, denomination, shape and design exportation or shipment or attempted exportation or of which were fixed by the law of October 29, 1914, and shipment, shall be expropriated by the Government those of silver which may be coined in future with the and forwarded for appraisal and acquisition to the same fineness, weight, size, denomination and shape as Bureau of Currency of the Treasury Department. the former but with the following design: on the obverse ART. XI. The fine referred to in Article IX shall be the figure of the Republic and a five-pointed star sur- imposed by the Secretary of the Treasury within a rounded by rays of light, the inscription Patria y period not exceeding 30 days from the date of the vio- Libertad and the year of their coinage; and on the lation, the offender to be notified thereof at the time he reverse the coat of arms of the Republic, the inscrip- receives payment for the gold expropriated. tion Republica de Cuba, and the indication of their ART. XII. The law of October 29, 1914, is repealed, value, weight and fineness. there remaining in force of that law only sections b and ART. VII. The payment of debts of money con- c of Article II and b and c of Article IV and Article VI; tracted prior to Decree-Law No. 244 of May 20, 1934,1 also Decree No. 570 of April 21, 1917 and Decree-Laws shall be made in the currency agreed upon, but if this Nos. 2788 of November 21, 1933 and 244, 256 and 259 should have disappeared from circulation or if the kind of May 22, 25 and 28 respectively of this year are of currency agreed upon should have been designated revoked, as well as No. 4 of disposition 5 of the customs indiscriminately "national money", "official money", tariff enacted by the presidential decree of October 19, "lawful money", "national gold", "American gold", 1917,2 together with any other provisions in any manor other similar terms, they shall be paid in paper ner contradictory to this decree-law. Nevertheless, currency of the United States of America. cases pending decision when this decree-law is promul- ART. VIII. Exportation is prohibited of gold in the gated shall be decided in accordance wTith the laws in form of coin, bars, bullion, jewelry, ornaments, articles force at the time of the seizure. of use or in any other form with the exception of arti- ART. XIII. This decree-law shall become effective cles of personal use, in accordance with regulations for upon its publication in the Gaceta Oficial of the the execution of this decree-law. Republic. ART. IX. Anyone who exports, ships or attempts to Therefore, I order that this decree-law be fulfilled and export or to ship gold in violation of the prohibition set- executed in all its parts. forth above shall be fined not more than 5,000 pesos. Given at the Presidential Palace, in Habana, on the The possession of gold in a customs zone in an amount 10th day of the month of August 1934. exceeding 100 pesos, shall be considered as an attempt CARLOS MENDIETA. to export or ship. 2 The presidential decree regarding the Cuban tariff was dated October 1 Decree-Law No. 244 was dated May 22, 1934 as noted in x\rticle XII 19, 1927. above. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

662 FEDERAL RESERVE BULLETIN OCTOBER 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 t t e e s d i Canada coSmrie?) Austria Bel^ium Bul^aria sYo'lakS Denmark England France Germany $l=25$io grains of gold 91 o fine; ,e., an ounce of fine gold=$20.67 1933—August 11,998 4,009 77 6,989 21 375 11 51 36 926 3,223 73 September.. 12,048 4,011 77 7,038 24 376 11 51 30 926 3,218 87 . , October 12,057 4,011 77 7,040 24 377 11 51 36 927 3,176 94 November.. 11,959 4.012 77 6,942 24 378 11 51 36 928 3,051 97 December. _ 11,930 4,012 77 6,916 27 380 11 51 36 928 3,022 92 1934—January 11,951 4,033 77 6,912 27 382 11 51 36 929 3,021 90 = 15^i grains of gold %o fine; i.e., an ounce of fine gold=$35 1934—January «... 20,229 6,829 130 11,697 45 646 19 86 60 1,573 5,109 152 February. __ 20,516 7,438 130 11,358 45 639 19 112 60 1,574 4,904 134 March 20,724 7,694 130 11,313 45 635 19 111 60 1,574 4,947 96 April 20,820 7,757 130 11,340 45 636 19 111 60 1,575 5,023 83 May 20,957 7,779 130 11,426 45 635 19 111 60 1,577 5,136 52 June v 21,163 7,856 132 11,548 45 625 19 111 60 1,578 5,274 28 July.. _ *> 21, 298 7,931 133 11,592 45 618 19 111 60 1,579 5,321 30 August p 21,477 7,978 131 v 11, 747 45 623 19 111 60 1,580 5,439 30 September.. v 7, 978 1,581 p 5,455 P30 Europe—Continued End of month Greece Hungary Italy N l e a t n h d e s r- Norway Poland Portu- Ruma- Spain Sweden Sw la i n tz d er- U.S.S.R3 Y sla u v g i o a - 6 c t o o ri u t e h n s e - r $l=25$io grains of gold ^io fine; i.e., an ounce of fine gold=$20.67 1933-August 17 370 332 39 53 32 59 436 97 351 401 32 35 September.. 17 371 338 41 53 32 59 436 101 356 416 32 35 October 17 371 359 40 53 32 59 436 101 373 416 32 35 November.. 14 373 370 40 53 33 59 436 99 386 416 32 35 December.. 14 373 371 38 53 34 59 436 99 386 416 32 35 1934—January 14 373 370 38 54 34 60 436 100 386 416 32 35 l = 155/ii grains of gold <ho fine; i.e., an ounce of fine gold=$%5 1934—January «... 23 633 626 64 91 58 100 739 169 653 704 53 58 February... 23 633 539 61 91 62 101 739 169 600 704 53 59 March 23 613 535 61 91 65 101 739 170 570 706 53 59 April 23 609 539 61 92 65 101 739 167 534 706 53 57 May 23 594 551 61 92 66 102 739 167 535 706 53 58 June 23 576 573 61 93 67 102 739 168 535 716 53 58 July 23 567 588 61 93 67 102 740 168 537 716 53 58 August 23 565 588 61 94 67 103 740 169 567 716 53 P58 September.. P554 588 Latin America Asia and Oceania Africa End of month T c tr o o ( i 1 u t e 0 a n s l ) - g t A i e n r n a - - Chile l C o b m i o a - - M ic e o x- Peru g U u r a u y - other c T tr o o i ( u e 7 t n s a ) l - IndiaJapan Java N l Z a e e n a w d - T k u ey r- c t o r o t i h u e e n s r T c tr o o i ( u e 4 t n a s) l - EgyptA So fr u ic th a c o tr o t i 2 h u e e n s r - $l=25yio grainsof gold %o fine; i.e., an ounce of fine gold—$20.67 1933—August 352 249 11 15 9 11 50 7 453 162 212 40 25 11 3 118 33 75 10 September 354 249 11 15 11 11 50 7 452 162 212 39 24 11 3 115 33 72 10 October 352 249 11 15 10 11 49 7 453 162 212 40 25 11 3 123 33 80 10 November 346 244 11 15 8 11 50 7 456 162 212 42 25 11 4 125 33 82 10 December 342 239 12 14 9 11 50 7 457 162 212 44 24 12 3 126 33 83 10 1934—January 342 239 12 14 8 11 51 7 459 162 212 45 25 12 3 127 33 84 10 $i=15Hi grains of gold yio fine; i.e., an ounce of fine gold=$35 1934—January 2 579 405 20 24 14 19 86 11 778 ! 274 359 76 42 20 6 215 56 143 17 February 588 405 20 24 18 20 87 14 780 274 359 79 42 20 6 222 55 150 17 March 590 405 20 25 20 19 87 15 778 274 359 77 42 20 5 218 55 146 17 April 591 405 20 24 22 19 87 15 781 275 362 77 42 21 6 220 55 149 17 May 594 405 20 24 23 19 87 16 803 275 382 79 42 20 6 226 55 154 17 June __iP590 405 20 25 P23 19 84 14 804 275 384 - 77 42 21 5 P233 55 161 p 17 July.... P593 405 24 26 P23 19 82 15 806 275 386 77 42 21 6 P244 55 172 p 17 August |P593 405 P24 26 *>23 P19 P82 v 15 *807 275 P387 77 M2 21 6 P220 P55 149 p 17 p Preliminary. 1 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 inclusion in the latter of gold coin in circulation. 2 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. 3 Figures reported as of end of each quarter by State Bank of U.S.S.R. carried forward for succeeding 2 months. 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

663 OCTOBER 1934 FEDERAL RESERVE BULLETIN GOLD PRODUCTION [In thousands of dollars] Production reported monthly Estimated Year and month I world Africa North and South America Far East pr t o io d n uc- Total A So fr u ic th a R de h s o ia - A W fr e i s c t a B C e o lg n i g a o n Canada S U ta n l i e t s e d i Mexico C b o ia lom- Au l s ia tr a-I I TJ _ a India rains of gold *Mo fine; i.e., an ounce of fine gold=$20.67 1932—November.. 42,627 36, 222 20,190 997 526 307 5,115 4,858 1,165 415 ,376 715 556 December.. 42,198 35,794 20,118 539 294 5,420 4,651 671 353 .,418 668 581 Total (12mo.)_ 499,049 422,129 12,000 5,992 3,642 62,933 50,626 12,070 5,132 14, 563 8,198 6,782 1933—January 42,207 35, 225 20,152 1,008 532 280 4,845 4,341 1,194 504 ,129 574 February. _. 38, 607 31, 625 18,176 989 531 264 4,737 3,059 1,095 334 ,178 654 608 March 43,277 36, 295 19, 658 1,038 522 302 5,399 5,230 1,059 455 ,259 747 626 April 40, 449 33,467 18,430 1,108 528 281 4,919 3,928 905 535 ,522 726 5S5 May 41,401 34, 420 19,519 1,108 520 308 4,932 3, 866 1,035 499 ,344 734 554 June 40, 479 33,498 19,008 1,130 561 308 5,426 2,956 986 435 ,434 711 543 July. -. 43,669 34, 688 19,228 1,133 571 306 5,306 3,638 1,165 577 ,420 755 589 August 43,838 34,857 19, 235 1,167 579 321 5,325 3,742 1,198 555 ,438 722 575 September- 44, 374 35, 393 18,664 1,180 546 307 4,889 5,602 820 375 ,591 847 572 October 45, 096 36,114 18,822 1,143 567 302 5,048 5,209 1,501 700 ,436 825 560 November- 44,673 35, 691 18,613 1,150 586 327 5,001 5,292 1,172 694 ,501 794 560 December.. 44,397 35, 415 18,168 1,181 580 325 5,140 5,581 1,038 503 ,538 788 573 Total (12 mo.). i 512,468 416, 687 227, 673 13, 335 6,623 3, 631 60, 968 50, 338 13,169 6,165 16, 790 6,919 1934—January 45, 041 35,059 18,897 1,201 546 320 | 4,781 4,858 697 1,398 721 560 grains of gold %ofine; 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 March 74, 706 57, 657 30, 550 2,042 965 571 8,726 7,945 1,194 940 2,415 1,390 921 April 74,187 57,138 30,173 2,014 941 509 7,975 7,595 2,233 843 2,566 1,376 914 May 77,635 60, 586 31, 324 2,055 951 566 9,090 8, 505 2,431 991 2,460 1,268 June 75, 389 58, 341 30,138 2,048 946 547 8,495 8,260 1,941 1,003 2,722 1,310 '930 July v 76,562 * 59, 513 30, 773 v 2,065 1,072 521 8,593 8, 750 v 1,855 1,037 2,579 p 1, 330 August p... 76, 981 59, 933 30, 870 2,030 1,155 521 9,205 8,365 1.925 1,015 2,579 1,330 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. 233-35, 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. Figures for Canada for 1934 are subject to revision. GOLD MOVEMENTS [In thousands of dollars] United States Total Net imports from or net exports (—) to— Year and month net imports China All e o x r p o n r e t t 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 t d zer- 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 In ri d ti i s a h H a o n n d g Japan c o o th u e n r - Kong tries Customs valuations; with some exceptions at rate of $20.67 a fine ounce 1932—Total (12 mo.). -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—April -9,973 -2,191 -8,993 -724 327 488 1,281 2, 973 -3,137 May -21,139 -15,715 -122 -115 110 344 83 -5,729 June -3,244 -2,1 -72 -1,445 154 141 10 812 July | -83,879 -713 -79,617 203 369 -4,121 August | -80,388 -1,535 -73,173 -216 143 125 -5,708 September j —56,736 -5,099 -48, 717 -2,171 224 518 -1,486 October -32,351 -6, 240 -26,923 "-109 -453 268 48 1,085 November -783 -2,260 -366 -5 216 240 1,419 December -9,128 -1,650 -203 -28 347 338 960 Total (12 mo.) I -173,455 6,375-216, 035 -2, 532 -895 7,901 -11,631 19,896 4,280 25, 629 12,821 6,702 -26,068 1934—January -2,767 -2,542 -461 1 -10 -1,678 313 246 1,364 Customs valuations; with some exceptions at rate of $35 a fine ounce February 452, 571 239,800 124, 381 131 57, 272 9,087 12,114 5,124 1, 6601 651 2,347 March 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 9,069 610 2,495 4,613 3,067 1,785 May 33,583 5,927 233 10 8 8,673 2,086 2,554 10, 240 1,865 1,987 June 63, 705 31. 288 10, 750 -4,865 2,837 37 12,191 2,286 2,190 July... -~ 53,346 22,978 2,212 -17 2,664 8,948 3, 254 3,316 August 37, 225 22. 872 -5,238 -146 -1,943 212 8, 200 515 2,484 5,489 672 4,105 September -18,670 -950 -17,748 -2,094 -500 539 513 1J74 I Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

664 FEDERAL RESERVE BULLETIN OCTOBER 1934 GOLD MOVEMENTS—Continued [In thousands of dollars] Great Britain Net imports from or net exports (—) to: Total Year and month net ime o x p r ( p o ) o n rt r e s t t s U S n ta i t t e e s d France m G a e n r y - g B iu e m l- N l e a t n h d e s r- Switzer- A So m ic u a e t r h - Canada B I r n i d ti i s a h I Austra- So R u h t o h *' o c t o A t r h i u e l e n l s r - Africa Official figures converted at rate of $20.67 an ounce 1932—Total (12 mo.)- 84,585 -50, 642 -297,050 133-13,434-71,378-14,019 5,747 220,394 10, 781 j 20, 264255, 310 18, 279 1933—April 64,767 -6 -1,519 18, 092 128 199 10, 278 1,001 20,316 19,344 -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 6,4-77 -479 401 9,129 11, 281 1,359 1,717 17,954 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 3,703 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 677, 405 7,939 97,016 41, 036 -7,065 -4, 299 14,056 43, 374118,81: 8,682 60,812 256,177 41, 667 Total (12 mo.) 62,146 4,788 -13 -20 5,310 -170 5,500 4,530 8,642 583 2, 353! 17, 667 3,170 1934—January Official figures converted at rate of $35 an ounce February 184,820 -238, 84: 283, 333 18,837 3,790 17, 891 -320 4,870 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 June 53, 056 -35,375 6,622 17,495 218 -659 -71 144 17, 3301 441 3,172 30, 505 13, 233 July 30,99! -29. 3f>9 -!2I 4, 099 -2,161 -46 -102 1, 791 12,213! 70 3, 234| 32,312 9,070 August 26,005 -15,420 -6, 797 45 -6, 034 -5 -4, 563 1,749 25, 146 66 4, 673j 22, 371 4,774 September p 23, 300 5,999 -6, 642 -2,099 -187 -1, 681 114 7,261 927! 150 3,438 10, 512 2,608 ! 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 e r 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 r th i u e l e n l s r - 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 - France! ] 1 N la e e n r t d - h s - \ ' I i S la z w n e i d r t- - S U . . R S . . o c 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 mo.) 828,178 468,052 309,984 37,889 37, 547-17,6 -7, 627 -27, 282 367 -250-38,170 -24, 455-7,915 46, 656-3,515 1933—April 48, 252 18, 583 2,283 22,520 670 -6, 377 2 10, 574 -68, 750 1-17,822 -51, 893 -4, 541 75 5,411 19 May 96,140; 7,680 -5,819 1,277 39,785 37,113 2 16,102 -9,938 46 -292 -6,435 -10,102 -61 7,023 -119 June 46,840: 5 -18,53" 22,903 7,976 30, 797 3,695 -36,432 1,453-13,676 -22,658 -5,3921 34i 3,833 -26 July 50,808 39,263 -12,572 23,430 5, 16, 5983-21,605 4,592 -162 153 270 -441 4,612 -238 August 53,694 75,680 -11,533 -46 -6,837 -1,397 -2,174 -676 216 -186 -256! -372 September. 43,043 60,990 -1,396 -8,059 -6,166 -2,176 -152 19,120 -32 17,910! 1,173 551 1 12 October 26,233 47, 745 -1,686 -5, -12,427 -3, 369 1, 5,845 41 5,9331 -94 -69 3 33 November _ -52,936 177 -24,646 -3 -21,460 -5,674 -1,328 2,572 -13 4,710 -5,2,2668 8 16 3,182 -133 December- -45, 650 -19,387 -772 701-23, 368 -2,823 2,627 15 590 2, -1,383 Total (12 mo.) 244,092 223,905 -86,829 57,42i 34, 706 10, 538 4,348-102,856 1,799-37, 044-64,922-40,950 206 40, 317-2,265 1934—January -7,236 1,215 -5,259 -70 -1,187 -1,934 1,246 -19 -2,615 293 -80 3,610 56 Official figures converted at rate of $35 an ounce February. _ -175,869 -92, 336-160,187 12, 536 59,198 -1,765 6,687 -20,472 -29, 660 -8, 054 -946 18,034 113 March -232,658 -79,158-155,636 3 15, 955-2,914 -10,907 -39,440 -55, 529 -2 -988 16,992 54 April _.. -1,373 997 -37,010 78 1,995 32,492 74 -5,655 -3,515 -8,073 -8,189 13,971 146 May 30,915 124 33, 581 1 516 5,4053 -8,712 -29,040 -13,382-10,083 -12,363 6,761 -10 June 6,437 -9, 779 - 11,411 18,191 -1,696 19.168 -8, 036 -20,312 7-12,286 -8, 155 106 July ' 2,895 -3. 003 '926 1 -104 -1,038 323 4, 469 -4, 207 2 -5 8, 459 172 August P..__ -15,105 -7,290 264 145 -39 -9,226 1,041 5,328 -2, 2 -133: 7,829 237 p Preliminary. r Revised. 1 Except during January 1933, imports of gold from Switzerland are included under "All other countries" since they are not reported separately n the official monthly statistics. 2 $9,832,000 imported by France from South Africa in April 1933; $14,412,000 in May 1933. 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, beginning July 1934 are subject to revision. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBEE 1934 FEDERAL RESERVE BULLETIN 665 GOLD MOVEMENTS—Continued [In thousands of dollars] Netherlands Year and month Total net Net imports from or net exports (—) to: imports or net ex ( p ) orts United 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 Official figures converted at rate of $20.67 an ounce 1932—Total (12mo.)_ 116,149 106, 623 50,070 -34,009 26,886 -12,727 -13,630 -16,137 16, 423 -7,346 = 1933—April -18,102 -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 -1,942 6,096 5,369 -90 -30 -297 441 142 December -9, 294 -7, 111 -601 -821 -230 -5 -658 31 Total (12mo.)_ -67,510 -1,624 -72,183 40,818 -17,873 -6,030 -16,974 9,632 1934—January -8,629 -7,082 -238 -367 -1,220 33 246 Official figures converted at rate of $35 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 -102 201 5 164 May 13,859 -115 -158 11,835 -68 1,696 311 -359 June 9,570 -225 277 1,701 7,704 -166 -291 -12 451 133 July 9,170 8,880 75 71 -53 -103 -112 322 August -2, 737 -194 -23 -42 174 -278 -2, 546 168 1 Switzerland British India Year and month Total Net imports from or net exports (—) to: Total Net i e m xp p o o r r t t s s ( f — rom ) t o o : r net Gold c o r r I e n a d - s e e - In o c r r d e e a - se i e m o x r n p p e o n o t r e r t 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 x r n p p e o n o t r e r t t t s s U S n ta i t t e e s d E la n n g d - o A th l e l r ti I d o p n u r n d o c - i - a in r G e ( c m - s o r ) e e v e i a r n e n v s r t e e n s - p i I ( c n h n r r - g i o e d ) v a s l i i d a s a n i e t - n e i in India Official figures converted at rate of $20.67 an ounce 1932—Total (12 mo.). 169,786 124,354 15,342 7,418 7,8 101 14,996 -304 -195,662 -38,094 151,059 6,782 127 -189,007 1933—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 -13,013 -991 543 -13,461 July -14,302 -307 -5, 739 -8,324 -44 1, -1,756 -6, 298 r 4, 513 r 1, 785 589 -2 -5, 707 August -1,542 -229 1,135 57 -1,339 -1,166 -10,971 -9,105 575 -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 1 560 -5, 287 December 23,996 8,756 -9,474 23,299 -17 741 -5, 734 -5,438 -296 573 -5,160 Total (12 mo.) -41,121 10,983 -24, 536-26, 781 -379 205 13,168 -13, 781 -126, 048 -30, 340 ' -84,686 r -11,021 6, 916 -119,124 1934—January 1,266 1101 -247 180 82 1,187| -47| -14,063 12,683! -l,380| 560;- -13,503 Official figures converted at rate of $35 an ounce February -30,109 -10,898 -21, 567 2,233 -12 -365 499-39, 307 -7, 703 -31, 678 74 000 -38,421 March -25,403 -1,617 -12,110 -7,799 -44 311-4,143 -20,806 11,664 -280 921 -5 -19,880 April.... -43, 753 -4, 682 •38,189 -26 -2,132 1,277 -20, 733-10,1 -9, 758 -278 914 186-20, 005 May •11,582 -5, 350 -6, 613 -16 -222 618-20, 344-13,143 -7,054 -147 946 -2 -19,396 June -8,372 -817 -5, 648 -2,193 -43 -186 -513 -19,105 -7,464 11,854 213 930 12-18,163 July -390 69 -1,171 11 12 -41 727-22,130 -8, 740 13,601 211 938 4 -21,196 August 26,569 2 4,007 11,802 -16 2,566 8,204 p-S, 607 v 938 1 P-2,670 p Preliminary. r Revised. 1 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

666 FEDEBAL BESEBVE BULLETIN OctOBSE 1634 GOVERNMENT NOTE ISSUES AND RESERVES {Figures are for last report date of month] 1934 1933 1934 1933 Aug. July June Aug. Aug. July June Aug. 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 71 71 70 Currency issued __ _ _ __ 522 526 529 555 Advances to banks under finance act 41 40 38 44 Trish Currency Commission (thousands Dominion notes: of pounds sterling): Issued 198 191 173 177 Legal tender note fund: Outside chartered bank holdings.. 31 30 32 29 British legal tender and bank Indian Government (millions of rupees): balances __ 382 122 302 24 Gold standard reserve: British securities... 6,620 6,984 6,855 7,165 Gold- 29 29 29 151 Notes issued 7,002 7,157 7,189 Foreign exchange 505 505 505 383 Consolidated bank notes: 1 7,106 Paper currency reserve: Issued 4,822 4,798 4,701 Gold 416 416 416 293 Deemed such under sec. 60 (4) of 4,812 Silver 992 994 972 1,054 currency act, 1927 1,165 1,180 1,280 Other assets 442 429 422 450 1,172 Notes issued _ _ _ _ 1,849 1,838 1,809 1,798 i Figures for consolidated bank notes issued represent daily averages for 4 weeks ended Aug. 18, July 21, and June 23, 1934, and Aug. 19, 1933. Figures 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 Liabilities Aug. 31 July 31 Aug. 31 Aug. 31 July 31 Aug. 31 Gold in bars _ 13,835 14,820 5,147 Demand deposits (gold) 13,701 14,686 5,147 Cash on hand and on current account with banks 13,278 5,021 4,307 Short-term deposits (various currencies): Demand funds at interest 8,746 10,807 22,927 Central banks for own account: Demand. 56,342 39,157 103,831 Rediscountable bills and acceptances (at Time—Not exceeding 3 months 111,710 109,032 128, 784 cost): Commercial bills and bankers' accept- Total- 168,052 148,189 232,615 ances 146,561 139, 007 234, 552 Treasury bills 203,142 208,118 167,839 Central banks for account of others: Demand 14, 693 14, 707 11,512 Total 349, 704 347,125 402, 390 Other depositors: Demand 1,161 934 3,151 Time funds at interest—Not exceeding 3 months.. 44,402 38, 200 123, 578 Long-term deposits: Annuity trust account 153.640 153, 640 154, 246 Sundry bills and investments: German Government deposit 76,820 76,820 77,123 Maturing within 3 months: French Government guaranty fund 40,175 40,811 48,030 Treasury bills 58,044 63,953 25,160 Sundry investments 61,914 32,004 59,943 Total 270,635 271, 271 279,399 Between 3 and 6 months: Capital paid in 125,000 125,000 125,000 Treasury bills 16, 339 16, 944 19,169 Reserves: Sundry investments. 42,491 70,619 I 47,924 Legal reserve fund 2,672 2,672 2,022 Over 6 months: Dividend reserve fund 4,866 4,866 3,895 Treasury bills 18, 599 7,808 7,189 General reserve fund 9,732 9,732 7,790 Sundry investments. 36,272 36,178 594 Other liabilities: Guaranty on commercial bills sold 4,232 4,295 Total 233, 659 227, 506 159, 979 Sundry items 58, 603 57,145 } 49,519 Other assets: Guaranty of central banks on bills sold.... 4,232 4,295 Sundry items 5,492 5,723 } i.722 Total assets _ 673,348 653, 497 720,050 Total liabilities.. 673,348 653,497 720,050 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBKK 1934 FEDERAL RESERVE BULLETIN 667 CENTRAL BANKS Assets of banking department Liabilities of banking department Bank of England (in G i o s l s d ue Note (Figures in millions of pounds sterling) d m e e p n a t r ) t 1 - C C o a i s n h 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 ti c e u s ri- ci t r i c o u n la- Bankers' D P e u p b o l s i i c ts Other l O ia ti t b e h i s e li r - 1933—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 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 .9 77.5 5.3 86.3 373.7 99.5 15.8 37.0 17.7 May 30.. 191.3 .8 73.2 5.6 87.6 378.1 99.4 14.0 36.1 17.8 June 27.. 191.5 .7 69.8 6.1 91.9 381.7 96.3 17.6 36.5 18.0 July 25.. 191.6 67.6 7.5 94.2 383.9 104.8 10.9 36.1 18.1 Aug. 29.. 191. 8 72.5 5.6 92.5 379.3 83.7 34.0 35.2 18.2 Sept. 26.. 191.9 .6 74.9 7.2 92.2 377.0 82.0 37.9 36.8 18.3 Assets Liabilities Bank of France Deposits (Figures in millions of francs) Gold e F x o ch re 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 ie l u o e s r ti i- a- O as 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 ti t b e h i s e li r - 1933—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 L, 130 4,486 2,893 6,119 7,870 79,474 2,270 15,836 1,972 Feb. 23._. 73,971 L,070 5,963 2,932 6,114 7,960 81,024 1,868 13,067 2,052 Mar. 30— 74,613 L,068 6,198 2,972 6,007 8,229 82,833 1,721 12,632 1,900 Apr. 27... 75,756 :L, 066 5,707 3,016 5,973 8,152 81,502 2,024 14,199 1,944 May 25— 77,466 L,094 5,011 3,060 5,950 8,202 79,992 2,996 15,681 2,114 June 29. _ . 79,548 L, 157 4,386 3,076 5,929 8,278 82,058 3,291 15,188 1,837 July 27... 80,252 L, 155 4,248 3,054 5,913 8,150 80,809 3,515 16,547 1,901 Aug. 31.... 82,037 1.082 3,116 3,140 5,913 9.060 81,732 3.884 16,880 1,853 Sept. 28 p. 82, 280 961 4,147 3,133 5,898 () 81, 479 3,673 17,673 (2) Assets Liabilities Reichsbank Reserves (Figures in millions of reichsmarks) Foreign Tr b e i a l s ls ury 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 ti c e u s ri- Other 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—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— 367 205 320 688 3,625 465 850 Oct. 31__. 396 3,147 143 319 799 3,571 416 850 Nov. 30... 405 3,001 163 518 773 3,542 478 871 Dec. 30... 386 3,177 183 581 735 3,645 640 1934—Jan. 31— 376 2,845 81 620 843 3,458 498 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. _. 70 3,392 171 685 780 3,777 623 775 July 31... 75 3,408 109 713 886 3,768 649 800 Aug. 31... 75 3, 540 128 737 867 3,824 717 813 Sept. 29 p. 75 3,810 148 755 806 3,919 848 851 1 In addition, the issue department holds Government and other securities and silver coin as cover for the fiduciary issue, which is fixed by law at £260,000,000. 2 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

668 FEDERAL RESERVE BULLETIN OCTOBER 1934 CENTRAL BANKS—Continued [Figures are for last report date of month] 1934 1933 1934 1933 Central bank Central bank August July June August August July June August National Bank of Albania (thousands Central Bank of China—Continued. of francs): Note circulation 75 72 55 Gold 7,122 7,123 7,335 Deposits—Government 218 209 139 Foreign exchange 23, 266 23,311 23,182 Bank. 41 42 51 Loans and discounts 2,717 2,973 3,053 Other 8 13 18 Other assets. 2,897 2,928 2,833 Other liabilities 76 78 64 Note circulation 11.398 11,355 12,760 Bank of the Republic of Colombia Demand deposits 13.817 14, 597 17,532 (thousands of pesos): Other liabilities 10, 788 10,382 6,111 Gold at home and abroad * 18,865 18, 245 17, 706 15,537 Commonwealth Bank of Australia Foreign exchange 1,876 1, 562 2,410 2,187 (thousands of pounds): Loans to member banks 3,112 2,764 3,782 1,257 Issue department: Note circulation 36,690 36,511 39,644 25,740 Gold and English sterling 15,708 15, 708 15,508 11,507 Deposits 28,638 28,454 27,412 21,031 Securities 28,125 28,125 28,375 21,672 National Bank of Czechoslovakia Banking department: (millions of koruny): Coin, bullion, and cash 855 909 934 951 Gold* 2,663 2, 663 2,663 1,708 London balances 23,058 23,189 28,134 21,544 Foreign balances and currency 5.. 53 26 13 905 Loans and discounts 15,344 15,484 11,689 15,299 Loans and advances 1,381 1,398 1,449 1,507 Securities 36,532 36, 467 36, 318 36,227 Note circulation 5,384 5,221 5,524 6,168 Deposits 80,338 80,976 83, 253 75,071 Deposits 758 927 630 416 Note circulation 46,050 46,050 46,301 41,660 Danish National Bank (millions of Austrian National Bank (millions of kroner): schillings): Gold 133 133 133 133 Gold* 242 242 241 150 Foreign bills, etc 10 10 17 Foreign exchange of the reserve. _ 0 0 0 39 Loans and discounts 79 73 Other foreign bills i 44 40 36 8 Note circulation 365 357 380 330 Domestic bills 253 248 254 188 Deposits 127 136 94 Government debts 624 624 624 654 Bank of Danzig (thousands of gulden) Note circulation 965 989 955 900 Gold 26,983 26,984 26,984 33,525 Deposits.. 175 138 156 104 Foreign exchange of the reserve.. 11,784 13, 548 17, 573 5,711 National Bank of Belgium (millions Other foreign exchange 197 1,056 2,976 1,277 of belgas): Loans and discounts 19,112 16,157 16, 962 9,307 Gold 2,647 2,626 2,653 2,700 Note circulation 41,321 41,126 41, 675 37,984 Domestic and foreign bills 680 661 657 765 Deposits 11,365 9,883 14, 332 6,276 Loans to State 344 344 347 355 Central Bank of Ecuador (thousands Note circulation 3,531 3,502 3,482 3,612 of sucres): Deposits --_ 307 285 317 359 Gold at home and abroad 15,617 15,229 14,418 Central Bank of Bolivia (thousands Foreign exchange 5,736 6,794 3,466 of bolivianos): Loans and discounts 50,656 49,353 45,412 Gold at home and abroad 8,922 8,810 13,053 Note circulation 41,268 41,126 30,901 Foreign exchange 2,099 3,028 5,336 .Deposits 19,286 20,244 20,100 Loans and discounts 21,516 26,892 36,633 National Bank of Egypt2 (thousands Note circulation 65, 436 64,061 47,659 of pounds): Deposits 145, 111 120, 994 40,187 Gold 6,546 6,546 6,663 Bank of Brazil (millions of milreis): Foreign exchange 2,194 2,100 1,871 Currency 411 596 Loans and discounts 4,046 4,209 4,441 C orrespondents abroad 283 203 British, Egyptian, and other Loans and discounts 2, f.94 2,960 Government securities 31,427 33,154 31,403 Note circulation 20 20 Other assets 3,153 3,111 3,559 Deposits.. 2,903 3,378 Note circulation 17,790 18,574 17,112 National Bank of Bulgaria (millions Deposits—Government 4,894 5,514 2,872 of leva): Other 16,677 17,097 19,996 Gold 1,547 1,547 1,547 1,521 Other liabilities 8,006 7,935 7,958 Net foreign exchange in reserve. _ -43 51 45 4 Bank of Estonia (thousands of krooni) Total foreign exchange 194 97 80 87 Gold 20,504 20, 490 20,473 19,244 Loans and discounts 1,037 974 1,060 977 Net foreign exchange 9,759 9,114 7,581 487 Government obligations 2,783 2,783 2,783 2,873 Loans and discounts 12,829 13, 343 16,162 19,517 Note circulation 2,509 2,605 2,674 Note circulation 32,763 32,815 32,183 30,352 Other sight liabilities 1,764 1,731 1,645 1,624 Deposits—Government 4,385 4,225 4,720 2,945 Central Bank of Chile (millions of Bankers' 7,805 7,38] 8,308 6,333 pesos): Other 2,372 2,859 3,591 3,209 Gold at home and abroad 116 Bank of Finland (millions of mark- Foreign exchange for account of: kaa): Bank 44 71 72 Gold 323 323 323 Exchange commission.. 2 4 4 Balances abroad and foreign Loans and discounts 63 80 123 credits , 1,073 934 885 Government debt 717 717 672 Foreign bills 290 318 318 274 Note circulation 494 500 489 Domestic bills 730 745 799 703 Deposits 359 372 357 Note circulation 1,224 1,200 1,234 1,087 Central Bank of China 2 (millions Other sight liabilities 512 463 382 571 of yuan): Bank of Greece (millions of drach- Gold 23 24 3 1 mas): Silver 126 123 113 Gold and foreign exchange 3,659 3,514 4, 212 3,209 Due from banks abroad 12 14 3 24 Loans and discounts 1,811 1,779 4,154 2,646 Due from domestic banks 75 71 29 Government obligations 3,353 3,355 3,355 3,355 Loans and discounts 129 130 124 Note circulation 5,421 5,143 5,131 4,832 Securities 15 15 10 Other sight liabilities 3,373 3,640 7,110 4,763 Other assets 37 38 3 27 Liabilities in foreign exchange 65 108 56 1 Beginning Apr. 30,1934, gold valued at rate of 1 schilling=0.16667 gram of fine gold, instead of 0.21172 as formerly, and foreign exchange valued at market. 2 Items for issue and banking departments consolidated. s Previous to May 1934 gold held abroad was reported in "Due from banks abroad" and "Other assets." < Gold acquired since Mar. 20,1934, valued at purchase price. 8 Gold content of koruna reduced on Feb. 17, 1934, from 44.58 milligrams of fine gold to 37.15 milligrams. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

669 OCTOBER 1934 FEDERAL RESERVE BULLETIN CENTRAL BANKS—Continued [Figures are for last report date of month] 1934 1933 1934 1933 Central bank Central bank August July June August August July June August National Bank of Hungary (millions Bank of Portugal (millions of escuof pengos): dos): Gold - 79 79 79 97 Gold 900 899 893 721 Foreign bills, etc. -. 15 13 11 9 Other reserves 357 322 350 370 Loans and discounts. 579 558 581 477 Discounts and advances 312 307 315 330 Advances to Treasury . _. 47 47 48 50 Government obligations 1,050 1 050 1 051 1,053 Other assets 33 30 29 29 Note circulation 1,921 1,908 1,932 1,909 Note circulation _ 369 364 364 354 Other sight liabilities 852 796 789 641 Deposits _ 60 45 69 76 National Bank of Rumania (millions Certificates of indebtedness 118 118 118 0 of lei): Miscellaneous liabilities 177 174 171 203 Gold 10,156 10,118 10,097 9,766 Bank of Italy (millions of lire): Foreign exchange of the reserve. _ 130 22 98 636 Gold at home - 6,343 6,362 6,468 7,033 Other foreign exchange 30 44 9 2 Credits and balances abroad.. .. 37 37 34 318 Loans and discounts 6,105 6,088 6,580 9,939 Loans and discounts 4,681 4,389 5,303 5,103 State debt 5, 668 5,668 5,668 5,704 Note circulation 13,194 13,330 12,888 13, 256 Note circulation 21,463 20,809 20,960 21,159 Public deposits 300 300 300 300 Demand deposits 7,407 7,578 7,611 8,001 Other deposits 1,155" 1,053 973 1,312 South African Reserve Bank (thou- Bank of Japan (millions of yen): sands of pounds): Gold.. 458 457 456 425 Gold 18, 058 20,933 19, 596 15,421 Advances and discounts 857 770 751 752 Foreign bills 9,760 13,491 20,996 17,482 Government bonds __ _ 441 466 498 368 Domestic bills 85 56 13 64 Notes issued -_ 1,172 1,186 1,295 1,118 Note circulation 12, 446 11,560 12,363 9,383 Total deposits. 495 399 308 359 Deposits—Government 1,249 3,263 2,398 1,735 Bank of Java (millions of florins): Bank 20, 448 23,478 28,895 24,079 Gold.. 113 113 112 100 Other 1,455 3,681 5,848 3,085 Foreign bills . 1 1 1 1 Bank of Spain (millions of pesetas): Loans and discounts 64 64 62 68 Gold 2, 265 2,264 2,263 2,260 Note circulation 182 184 185 194 Silver 684 684 685 646 Deposits 31 33 27 29 Balances abroad 277 281 283 282 Bank of Latvia (millions of lats): Loans and discounts 2,367 2,452 2,372 2,468 Gold 44 44 44 47 Note circulation 4,542 4,535 4,533 4,742 Foreign-exchange reserve _ 5 5 4 2 Deposits 885 894 948 948 Bills 62 63 65 67 Bank of Sweden (millions of kronor): Loans 61 62 63 46 Gold 373 371 370 361 Note circulation . 32 32 32 32 Foreign bills etc 475 462 449 310 Government deposits.. 51 55 57 67 Loans pnd discounts 42 41 60 56 Other deposits 112 111 109 95 Note circulation 643 612 653 565 Bank of Lithuania (millions of litu): Deposits 455 444 400 420 Gold 55 55 55 48 Swiss National Bank (millions of Foreign currency 8 9 9 9 francs): Loans and discounts 82 82 83 82 Gold.. 1, 735 1,642 1,637 1,820 Note circulation 85 84 84 92 Foreign balances and bills 22 16 10 6 Deposits -- _ . -. 59 61 63 43 Loans and discounts 126 133 167 92 Bank of Mexico (millions of pesos): Note circulation. 1,370 1,364 1,376 1,402 Gold 97 89 88 38 Demand deposits 519 441 455 547 Silver _ 126 128 127 110 Central Bank of the Republic of Foreign exchange 5 10 6 17 Turkey (millions of pounds): Loans to member banks 62 65 54 39 Gold. 27 26 26 23 Other loans and discounts ... 22 21 22 45 Foreign exchange. . 5 4 4 Other assets 11 11 9 8 Government securities 153 153 153 152 Note circulation 104 100 99 73 Other securities 31 31 31 29 Deposits 103 107 88 71 Other assets 38 36 35 41 Other liabilities 117 117 119 113 Note circulation 158 158 158 161 Netherlands Bank (millions of flor- Deposits 35 35 33 31 ins): Other liabilities . . 61 59 59 54 Gold 863 863 842 827 Bank of the Republic of Uruguay Foreign bills 1 1 1 1 (thousands of pesos): Loans and discounts. ._ 170 179 178 181 Gold 46, 643 48, 043 48,126 Note circulation 894 909 882 912 Loans and discounts 97,562 99,182 101, 298 Deposits 189 180 173 138 Other assets 43 928 43,434 42,574 Bank of Norway (millions of kroner): Note circulation 72,479 73,637 78,458 Gold 135 135 135 146 Deposits—Demciiid 28,874 32,365 29,491 Foreign balances and bills 8 7 6 22 Time 44,247 42,483 41,997 Domestic credits 273 276 282 218 Judicial and adminis- Note circulation 321 323 325 304 trative 2,711 2,809 2,679 Foreign deposits 2 3 2 1 Other liabilities 39,822 39,366 39,373 Total deposits 59 59 62 69 National Bank of the Kingdom of Central Reserve Bank of Peru (thou- Yugoslavia (millions of dinars): sands of soles): Gold _ 1,813 1,792 1,781 1,797 Gold and foreign exchange 44,063 42,378 49,900 Foreign exchan°re 155 123 115 154 Bills 58,002 56,976 40,424 Loans find discounts 1,845 1,818 1,812 2,247 Note circulation 71, 945 66,802 66, 034 Advances to State 2,320 2,319 2,319 2,317 Deposits 22,289 24,944 17,189 Note circulation 4 233 4 170 4 142 4 314 Bank of Poland (millions of zlote): Other sisht liabilities 1,141 1,160 1,098 846 4.09 AQ(\ 470 Foreign exchange 46 40 43 75 Loans and discounts 754 724 731 797 Note circulation _ 950 908 938 1,004 Other sight liabilities 247 223 191 164 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

670 FEDEEAL RESERVE BULLETIN OCTOBER 1934 COMMERCIAL BANKS [Figures are as of end of month, except those for England, which are averages of weekly figures] Assets Liabilities England Cash in (10 clearing o b f a p n o k u s n . ds F s i t g e u rl r i e n s g ) in millions v d E B a u n a u e g n l l t f k a r a o n o n m d f dM c n a o s l o h n l t o e i a 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 - Other Total Demand1 Time* lia O b t i h li e t r ies 1933—October. „ 218 343 559 752 222 1,951 910 233 November 216 99 317 569 741 228 1,928 905 241 December. 213 119 311 565 740 237 1,941 1,015 900 244 1934—January- 223 130 284 558 738 232 1,920 974 893 244 February _ 209 118 250 560 746 231 1,867 932 881 246 March 219 120 202 547 757 226 1,831 910 880 240 April 222 132 212 534 763 230 1,853 919 890 240 May 218 131 223 542 759 225 1,858 925 887 238 June 199 141 228 549 761 229 1,870 954 888 237 July 210 138 224 550 762 220 1,871 960 874 235 August 196 139 222 557 759 219 1,856 939 236 Assets Liabilities (4 large banks. F F f i r r g a a u n n r c c e s e s ) in millions of v d B C a u a a u e n s lt h f k r a o i o n n m f d Due from B co il u ls n t d e i d s- i s n L e l c c o o l u u a a n r d n i s i s t n y , g a O s t s h e e ts r Total D D e e p m o a s n it d s Time c O ep w t n a n a c c e - s lia O b t i h li e t r ies France 1933—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 5,306 1,590 17,973 8,616 1,220 30,677 29,819 857 320 3,707 May 5,567 1,496 18,043 8,356 1,185 30, 621 29,746 875 261 3,766 June 5,547 1,478 18, 435 8,199 1,201 30,820 29,916 904 208 3,833 July 6,105 1,407 18, 705 8,526 1,270 31,888 30, 962 926 201 3,925 Assets Liabilities ( i R n e m po il r l t i i o n n G g s e b o r a f m n r a k e n i s c y . hs F m i a g r u k r s e ) s v d C a R u u b a e e l a s i t c h n fr h k a o i s n n m - d D b u a e n f k ro s m B co il u ls n t d e i d s- in s L e c l c o l o u u a a d r n n i i s s t n y , g Securities Other* Total D D e e p m o a s n it d s Time c b o u C a b s f n r t t r a e o k o i d m s m n i e f t e o s d r r s lia O b t i h li e t r ies 1933—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 2,331 1,222 7,015 3,155 3,859 709 3,187 December 2_. 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 3,120 May 169 619 2,160 4,309 2,478 1,184 7,185 3,260 3,925 631 3,103 June 226 619 2,128 4,220 2,512 1,158 7,164 3,361 3,804 609 3,091 Liabilities Canada Entirely in Canada Se lo c a u n ri s ty e D x e c p lu o d s i i n ts g p i a n y te a r b b le a n i k n d C e a p n o a s d it a s (10 chartered banks. Figures abroad Note i l n ar m s) illions of Canadian dol- v t r C a r i e n a u a s l l e s c t h r g e v o a n e i l n - n d s 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 h s 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 k r g o s e n m t Securities Other ci t r i c o u n la- Total Demand Time lia O b t i h li e t r ies 1933—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 June 185 1,018 183 837 452 129 1,922 557 1,365 723 July 206 996 163 850 455 122 1,929 568 1,360 717 August 212 100 1,000 184 862 446 131 1,939 571 1,367 733 1 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

671 OCTOBEB 1934 FEDERAL RESERVE BULLETIN DISCOUNT RATES OF CENTRAL BANKS [Percent per annum] Date effective E la n n g d - France C m e G n a e t n r r y a - l ba I n ta k l y of— N la e n th d e s r- Sw la it n z d er- b C an e k n tr o a f— l R O a 1 c t t e . Date effective ba C n e k n t o r f a l — R O a 1 c t t e . Date effective In effect Dec. 1,1931. 6 8 7 3 2 Albania Nov. 16,1933 Japan 3.65 July 3,1933 Dec. 10 7 Austria June 28,1934 Java h July 1,1934 Feb. 18, 1932 5 Belgium 2H Aug. 28,1934 Latvia Jan. 1,1933 Mar. 9— 6 Bolivia 6 July 5,1932 Lithuania.. Apr. 1,1930 Mar. 10 4 Mar. 17 Bulgaria 7 Jan. 2,1934 Norway May 24,1933 Mar. 21... 6 Chile Aug. 23,1932 Peru 6 2 May 20,1932 Apr. 9 ri./ Colombia. . 4 July 18,1933 Poland 5 Oct. 26,1933 Apr. 19 ol/ Czechoslo- Portugal Dec. 8,1933 Apr. 21 3 vakia Jan. 25,1933 Apr. 28 5 Rumania G Apr. 5,1933 May 2 5 Danzig 4 Sept. 21,1934 South Africa. May 15.1933 May 12. . . 91/ Denmark... Nov. 30,1933 Spain 6 2 Oct. 26,1932 June 30.. 2 Ecuador. .. 4 Nov. 30,1932 Sweden Dec. 1,1933 Sept. 22 4 Estonia 5 Oct. 1,1934 Jan. 9, 1933 4 Turkey Mar. 2,1933 May 12 Finland Dec. 20,1933 U.S.S.R 8 2 Mar. 22,1927 June 29 Greece Oct. 14,1933 Yugoslavia... July 16,1934 Julv 15 4 Hungary Oct. 18,1932 July 29 India Feb. 16,1933 Aug. 15- 3 2 Sept 4 3H Sept. 19 91/ J D F u e e n b c e . . 9 1 1 , 1 . 1 93 _ 4 . . 3 3 Ch E a s n to g n e i s a — sin O c c e t . S 1 e , p d t o . w 1 n : f D ro a m nz i V g A — t S o e p 5 t p . e 2 rc 1 e , n u t p . from 3 to 4 percent; In effect Oct. 1,1934. 2 4 3 2H 2 MONEY RATES IN FOREIGN COUNTRIES [Percent per annum] England (London) Germany (Berlin) Netherla d n a d m s ) (Amster- Month hDi1 l1i1eS , 36 Da m y- o t n o e -d y ay o a B n l l a d o n e w k p a e o n r s s c i ' e ts d P is r r c i a v o te a u t n e t M 1 o m ne o y n t f h or Da m y- o t n o e -d y ay d P is r r c i a v o t a u e t n e t M 1 o m ne o y n t f h or h 1933—July 0.40 0.62 3.87 5.50 5.19 3.54 2.64 August .30 .62 3.87 5.50 4.94 1.11 1.08 September. .31 .63 3.87 5.50 5.00 .77 1.00 October .73 .75 3.87 5. 50 5.11 .50 1.00 November. .94 .75 3.87 5.50 5.18 .45 1.00 December. 1.15 .77 3.87 5.50 4.97 .52 1.00 1934—January.... .90 3.87 4.78 4.74 .50 1.00 February.. .86 3.87 4.91 4.78 .78 1.00 March .84 3.87 5.00 4.89 1.24 1.07 April .89 3.87 5.11 4.76 2.07 1.85 May .85 .85 3.87 5.13 4.72 1.33 1.22 June .85 .92 3.76 4.67 4.57 .78 1.00 July .76 .85 3.75 4.44 4.67 .74 1.00 August .74 .81 3.75 5.02 4.72 .75 1.00 Sweden Switzer- Belgium France Italy Hungary (Stock- Japan (Tokyo) land (Brussels) (Paris) (Milan) holm) Month d P is r r c i 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 i r s r i c a v o t a e u t n e t c c i o a P l m r p i m m a e p e r e - r Da m y- o t n o e -d y ay L m oa o to n n s 3 t h u s p Disc b o il u l n s ted ov m e C o rn a n l i e l g y ht 1933—July ... 1.50 2.31 1.39 4.00 3 -5 5.11-5. 48 2.37 August 1. 50 2.31 1.45 4.00 3 -6 5.11-5. 48 2.37 September. 1.50 2.27 1.13 3.55 3 -5 5.11-5. 48 2.56 October.. _ 1.50 2.21 1.25 3.50 3 -5 5.11-5. 48 2.56 November. 1.50 2.12 1.85 3.50 3 -5 5.11-5. 48 2.56 December. 1.50 2.25 2.26 3.00 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 4H-7> 5.11-5. 48 2.56 March 1.50 2.07 2.75 3. 00 43- ' 5.11-5. 48 2.56 April 1.50 2.14 2.70 3.00 5.11-5. 48 2.37 May, 1.50 1.93 2.60 3.00 5.11-5. 48 2.37 Juno 1.50 2.11 2.09 3.00 ' 5.11-5. 29 2.37 July 1.50 2.20 1.78 3.00 5.11 2.56 August 1. 50 2,31 1.75 3.00 ' Revised. 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

672 FEDERAL RESERVE BULLETIN OCTOBER 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] Year and month A t r i g n e a n- t A r u a s l - ia A (s u c s h tr il i - a Belgium B (m ra i z l i - l g B a u r l i - a Canada Chile China Co b l i o a m- Cuba s C lo z v e a ch k o ia - m De a n r - k (peso) i (pound)2 ling) 3 (belga) reis) i (lev)» (dollar) (peso) i (yuan) (peso) 1 (peso) (koruna) (krone) 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 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 1 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—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. 6378 101.1829 10.0983 32.9030 66.7200 99.9617 4. 7600 22.9975 December 1 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 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 1.3295 100. 2070 10.2595 34.1506 59.9228 99.9258 4,1720 23.0051 May - 34. 0413 407.10 18.9429 23.4137 8. 6046 1.3154 100.1859 10. 2531 32.4621 61. 4642 99.9329 4.1755 22. 7948 June 33.6552 402. 24 18.9021 23.3628 8. 4734 1. 2503 100. 7936 10. 2233 33.0523 57. 8900 yy. 972b 4.1590 22. 5395 July 33.6077 401. 69 18. 8786 23.3606 8. 4384 1. 2608 101. 2034 10. 2705 33.9069 56.1052 99. 9404 4.1540 22. 5103 August 33.7661 403.52 18. 9981 23. 7056 8. 4898 1. 2881 102. 3779 10. 3274 33. 9293 55.1448 99.9298 4.1944 22.6215 September 33. 2904 396. 50 19.0185 23. 7332 8. 3096 1. 2814 102.9387 10. 2974 35. 5827 57. 6496 99. 9150 4.2141 22 2981 Ger- Year and month (p E o g u y n p d t ) E (p n o g u la n n d d ) F ( i m n k l a a a r ) n k d - F (f r r a a n n c c e ) ( m m re a a ic r n k h y ) s- G (d m r r e a a e c ) c h e (d K H o o o l n l n a g g r) (p H e g n u a g n r - y o) ( I ru n p d e ia 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 N ( l f e a l t n o h r d e i s n r ) - 1929.— 498.0689 485. 6879 2.5160 3.9161 23. 8086 1. 2934 47.1669 17.4414 30.2020 5.2334 46.0997 48.1830 40.1622 1930 498.6002 486. 2126 9. 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 17.4622 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—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 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 523 7236 510. 6279 2. 2540 6. 6131 39. 4712 .9462 36. 2293 29.7559 38.3329 8.5176 30. 2276 27. 7432 67.9056 June 517.7111 504 8046 2. 2311 6. 5993 38. 2953 .9449 36.4890 29. 7529 37.9072 29.9041 27. 7492 67. 8148 July 516. QoOfi 504. 0705 2. 2302 6. 5939 38.4938 .9453 37. 6231 29. 7112 37. 8774 8.5750 29.8434 27. 7481 67. 7586 August 519. 5273 506. 5076 2. 2403 6. 6592 39.4786 .9565 38. 6140 29.8832 38.0616 8. 6632 29.9933 27. 729S 68.3808 September-_. 499. 4056 2. 2101 6. 6714 40. 2760 .9562 39. 3324 30. 0219 37. 5481 8. 6794 29. 7693 27. 7458 68. 5744 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 es o g c r a u t l d u o - ) R ( u n le m i u a ) a- (p S e p s a e i t n a) ( S S m d e t o r e t l a t n l l a i t e t r s s - ) S (k w r e o d h e a n ) S ( w f l r a i a n t n z d c e ) r- T (p u o r u k n e d y ) ( U p S A n o o f i u r u o n i n t c d h a o ) ; (p U gu e ru s a o - y )1 Y ( sl d a u i v g n i a o a r - ) 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—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 24.0690 28. 7902 67.2262 461. 23 70. 7755 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 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 79.4669 499.10 80. 2668 2. 2702 July 402. 81 25. 3246 18.8917 4. 6129 1. 0045 13.3076 59. 0562 25. 9615 32. 5771 79. 2912 498.44 80.1433 2. 2773 August 405. 09 25. 4504 19. 0824 4. 6274 1. 0126 13.8002 59. 3488 26.1182 32. 9542 79. 9969 501. 27 80. 9961 2. 3075 September 398. 77 25. 0928 19.1413 4. 5593 1. 0144 13.8269 58. 5164 25. 7483 33.0237 494. 23 81.1496 2. 3156 'Nominal since April 1933. 2 Nominal since April 1934. 3 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. fi 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. e 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. Aver age 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

OCTOBER 1934 FEDERAL RESERVE BULLETIN 673 PRICE MOVEMENTS IN PRINCIPAL COUNTRIES WHOLESALE PRICES—ALL COMMODITIES [Index numbers] Year and month (1 U 9 S 2 t n 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 n 1 d 00) (1 F 91 r 3 a = n 1 ce 00) ( G 19 e 1 r 3 m = a n " y " (191 T n 3 a t a = i l y v 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 1933 66 67 101 398 93 280 180 74 1933—April 60 65 97 387 91 279 176 71 May_ 63 67 99 383 92 279 177 72 June 65 68 102 403 93 281 180 73 July 69 71 102 401 94 279 182 73 August 70 '70 103 397 94 278 180 73 September. 71 69 103 397 95 276 182 75 October 71 68 103 397 96 274 180 75 November. 71 69 103 403 96 273 179 76 December. 71 69 103 407 96 275 176 77 1934—January... 72 71 105 405 96 276 176 79 February.. 74 72 105 400 96 275 178 80 March 74 72 104 394 96 275 177 79 April 73 71 103 387 96 273 177 79 May 74 71 102 381 96 273 176 77 June 75 72 104 379 97 272 175 76 July 75 72 103 374 99 270 174 77 August 76 72 106 371 100 271 177 78 r Revised. 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) Indus- 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 t l s - P s r io o n v s i- a t f r n i i n d a i l s s h r e a e m w d i- p tr I r i i n o s a d d h l u e u f d s c in - ts 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 1933 51 61 71 103 99 420 380 87 75 88 113 1933—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 February 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 67 79 100 104 405 360 92 74 90 115 June 63 70 78 104 104 406 356 94 76 91 U5 July . . 65 71 78 104 103 396 354 98 76 92 115 August 70 74 78 111 103 393 351 100 78 92 Sources.—See BULLETIN for March 1931, p. 159. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

674 FEDERAL RESERVE BULLETIN OCTOBER 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)! 1914=100) 1914=100)2 14=100)3 (1913=100) 1914=100) 1914=100)2 14=100)3 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 _ ... 100 120 100 110 1933 132 140 106 119 1933—April 90 115 99 106 •moo—Anril 137 117 May 94 114 97 no May 136 118 June 97 114 97 ill 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 SeDtember 141 105 119 October 107 123 101 112 October 141 120 November 107 126 103 113 November 143 120 December 104 126 104 114 December . 135 143 107 121 1934—January 105 124 105 114 1934—January 142 121 February 108 122 103 114 Fpbruarv 141 121 March 109 120 100 114 Miarch 140 107 121 April 107 118 98 114 April 139 121 May 108 116 97 113 May 137 120 - June 109 117 98 116 June 136 138 106 122 July 110 122 97 118 July 141 123 August 112 123 97 119 August 142 123 1 Since August 1933 the Bureau of Labor Statistics has published biweekly indexes. Figures given are for the date nearest 15th of month. 2 Index represents prices converted to gold basis of 1914. 8 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 G6n6rale, and for cost of living, Commission d'6tudes 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 S a p v t n r a e i i c r t t e a e e ) s g d e 1 (D 9 E 2 e n 1 c g = e l m a 1 n 0 b d 0 e ) r 1 ( a 1 g F 9 e 1 r 3 a = n a 1 c v 0 e 0 e ) r- G ( p a e v r r i e m c 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 67.9 105.2 2 50.3 1933._ ira 7 •ST73 82.5 78.6 99.6 61.7 1933—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 78.5 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 June 99.0 125.3 85.6 88.9 73.5 86.0 87.6 69.9 July... 99.3 127.1 82.7 87.8 71.4 84.8 83.3 71.3 August 97.8 127.4 81.8 87.9 67.8 83.8 81,1 73.4 1 Annual indexes are unweighted averages of monthly indexes. 2 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. .—See BULLETIN for February 1932, p. 121. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

675 OCTOBER 1934 FEDERAL EESERVE BULLETIN LAW DEPARTMENT Investment banking firm as financing institution bank, under the provisions of subsection (b) within meaning of section 13b of Federal Reserve of section 13b of the Federal Reserve Act, may Act lawfully discount for a financing institution Section 13b of the Federal Reserve Act, as operating in its district an obligation entered amended by the act of June 19, 1934, authorizes into for the purpose of obtaining working a Federal Reserve bank, in certain circumcapital for an established industrial or commerstances, to discount for or purchase from any cial business located in another Federal Reserve bank, trust company, mortgage company, district just across the line dividing that discredit corporation for industry, or other financtrict from the district of the discounting Federal ing institution operating in its district obliga- Reserve bank, provided, of course, that the tions having maturities not exceeding 5 years other applicable requirements of the law and the entered into for the purpose of obtaining Board's Regulation S on this subject are met. working capital for an established industrial or commercial business; and the question was recently presented to the Federal Reserve Regulation T of the Federal Reserve Board Board whether a firm of investment bankers There is printed below the text of Regulation may be considered a financing institution T with regard to extension and maintenance of within the meaning of this provision of law. It credit by brokers, dealers, and members of w^as understood that a substantial part of the national securities exchanges under the Securibusiness of this firm consists of providing funds ties Exchange Act of 1934, which was approved for business enterprises through the under- by the Board on September 27, 1934, to become writing, sale, and distribution of securities. It effective October 1, 1934. was proposed that this firm should make a loan In order that persons affected by Regulation or advance to an established industrial or T of the Federal Reserve Board might have commercial business to provide it with working additional time after October 1, 1934, within capital and that such loan or advance would be which to familiarize themselves with this reguevidenced by the note of such business, and it lation, the Securities and Exchange Commiswas desired that such note be discounted with or sion has exempted, until midnight of October sold to the Federal Reserve bank of the dis- 14, 1934, from the operation of sections 7 (a), trict. After consideration of the matter the 7 (c), 7 (d), 8 (a), and 12 (a) of the Securities Board expressed the view that in the circum- Exchange Act of 1934 and all regulations prostances stated and upon condition that the mulgated thereunder, all securities, whether transaction would comply in all other respects registered or not, except securities as to which with the applicable requirements of law and the the Commission has refused to grant or has Board's Regulations on this subject, the Federal denied registration. Reserve bank may lawfully discount for or It is suggested that all inquiries as to these purchase from the investment banking firm regulations be addressed first to the securities such obligation of an established industrial or exchange of which the persons making the incommercial business pursuant to section 13b quiries are members or the facilities of which of the Federal Reserve Act. are used for their transactions. In the event the exchange officials desire information as to such questions, they should make inquiry of Discount for financing institution of obligation of estabthe Federal Reserve agent at the Federal Relished business located in another Federal Reserve district serve bank of their district. In turn the Fed- In response to an inquiry from a Federal eral Reserve agent may make inquiry of the Reserve bank, the Federal Reserve Board has Board as to any question that needs the expressed the opinion that a Federal Reserve Board's determination. All answers made by Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

676 FEDERAL RESERVE BULLETIN OCTOBER 1934 the Board to such inquiries will be distributed ties ahd applies to the extension and maintenance of to all exchanges through the Federal Keserve credit by members of national securities exchanges and by brokers and dealers transacting a business in agents. securities through the medium of such members. CONTENTS This regulation shall not be construed as applying SEC. 1. Scope and effective date of regulation. to the extension or maintenance of credit on registered SEC. 2. Definitions. securilies for any purpose other than the purpose of SEC. 3. Margin requirements. (a) General rule. purchasing or carrying securities or of evading or cir- (6) Extensions of credit to other members, brokers, and cumventing the provisions of this regulation. dealers. This regulation shall become effective on October (c) Extension of credit to distributors, syndicates, etc. 1, 1934. (d) Arbitrage accounts. (e) Exempted securities. Such further regulations as the Board deems neces- (/) Adjusted debit balance. sary or appropriate to carry out the provisions of (g) Current market value. sections 7 and 8 (a) of the Securities Exchange Act (h) Lowest market price. of 1934 will be issued from time to time. SEC. 4. Extension and maintenance of credit, (a) Statutory provision. (6) General rule. SECTION 2. DEFINITIONS (c) Transactions in unrestricted accounts. For the purposes of this regulation— (d) Transactions in restricted accounts. (a) The terms "person", "member", "broker", (e) Time when margin must be obtained. (/) Time when payment or margin is deemed to be received. "dealer", "buy", "purchase", "sale", "sell", "secur- SEC. 5. Extension or maintenance of credit without collateral or on ity", "equity security", and "bank" shall have the collateral other than exempted or registered securities. meanings given them in section 3 (a) of the Securities (a) General rule. Exchange Act of 1934, which is printed in the appendix (6) Credit not for purchasing or carrying securities. (c) Additional collateral for maintenance of existing credits. to this regulation. SEC. 6. Cash transactions. (b) The term "creditor" means any member of a SEC. 7. Accounts existing on October 1, 1934. national securities exchange or any broker or dealer (a) Old accounts. who transacts a business in securities through the (6) New accounts. (c) Consolidation of old accounts with new accounts. medium of any such member. SEC. 8. Administrative adjustments and details. (c) The term "account" means any account (a) Borrowing and lending securities. (whether a "combined account" or a "special account" (6) Interest, commissions, etc. or any other account) representing any financial (c) Declaration as to purpose of loan. (d) Guaranteed accounts. relationship between any creditor and any customer or (e) Transfer of accounts. any group of customers acting jointly. (0 Credit for clearance of securities. (d) The term "combined account" means the com- (g) Innocent mistakes. bination of all accounts (except "special accounts") (h) Transactions outside United States. SEC. 9. Reports. between any creditor and any customer, or any group SEC. 10. Borrowings by members, brokers, and dealers. of customers acting jointly, to or for whom such (a) General rule. creditor is extending or maintaining any credit, directly (6) Borrowing from nonmember banks. or indirectly, on registered securities (other than (c) Borrowing from other members, brokers, and dealers. (d) Emergency loans. exempted securities) for the purpose of purchasing SEC. 11. Qualification of nonmember banks to lend to members, brokers, or carrying securilies. and dealers, (e) The term "special account" means any account (a) Form of agreement. recorded separately in conformity with sections 3(&), (6) Banks in territories or insular possessions; branches of foreign banks. 3(c), 3(d), 5(6), 6, or 7(a) of this regulation; and, when (c) Method and evidence of filing. so recorded, such accounts shall be excluded, for the (d) Termination of agreements. purposes of this regulation, from all calculations (e) Forms available. involving "combined accounts". SEC. 12. Additional requirements by exchanges and creditors. Appendix. (/) The term "exempted security" or "exempted securities" shall include securities which are direct REGULATION T, SERIES OF 1934 obligations of or obligations guaranteed as to principal EXTENSION AND MAINTENANCEOF^CREDIT BY BROKERS, or interest by the United States; such securities DEALERS, AND MEMBERS OF NATIONAL SECURITIES issued or guaranteed by corporations in which the EXCHANGES United States has a direct or indirect interest as shall SECTION 1. SCOPE AND EFFECTIVE DATE OF REGULATION be designated for exemption by the Secretary of the This regulation is issued pursuant to the require- Treasury as necessary or appropriate in the public ments of sections 7 and 8 (a) of the Securities Exchange interest or for the protection of investors; securities Act of 1934 for the purpose of preventing the excessive which are direct obligations of or obligations guaranteed use of credit for the purchasing or carrying of securi- as to principal or interest by a State or any political Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 1934 FEDERAL RESERVE BULLETIN 677 subdivision thereof or any agency or instrumentality market value exceeding that of any money and/or of a State or any political subdivision thereof or any registered and/or exempted securities paid or delivered municipal corporate instrumentality of one or more into the account on the same day. States; and such other securities as the Securities and (m) The term "customer" means any person to or Exchange Commission may, by such rules and regula- for whom, or any group of persons to or for whose joint tions as it deems necessary or appropriate in the account, a creditor is extending or maintaining any public interest or for the protection of investors, credit and includes any partner in a firm to whom such either unconditionally or upon specified terms and firm is extending credit for the purpose of purchasing conditions or for stated periods, exempt from the or carrying securities: Provided, however, That a partner operation of any one or more provisions of section 7 shall not be deemed to be a customer of his firm within and/or 8(a) of the Securities Exchange Act of 1934, the meaning of this regulation with reference to his which by their terms do not apply to an "exempted financial relations to the firm as reflected in his capital security" or to "exempted securities". and ordinary drawing accounts. (g) The term "registered security" means any security which is registered on a national securities SECTION 3. MARGIN REQUIREMENTS exchange, or which, in consequence of its having unlisted (a) General rule.—No creditor shall make any initial trading privileges on a national securities exchange, extension of credit to any customer on any registered must, under the provisions of section 12 (f) of the Se- security (other than an exempted security) for the curities Exchange Act of 1934, be considered a "security purpose of purchasing or carrying any security, in an registered on a national securities exchange". amount which causes the total credit extended on such (h) The term "maximum loan value" of a security registered security to exceed the maximum loan value means the maximum amount of credit which, at any of such registered security. Except as specifically given time, may be extended by any creditor on such provided elsewhere in this section, the maximum loan security, in conformity with section 3. The "maximum value of any registered security (other than an exempted loan value" of the securities in an account, at any security) shall be whichever is the higher of: given time, is the sum of the maximum loan values at (1) 55 percent of the current market value of the such time of the individual securities in such account, security; or including securities bought for the account of the cus- (2) 100 percent of the lowest market value of the tomer but not yet debited to his account, but excluding security computed at the lowest market price securities sold for the account of the customer for which therefor during the period of 36 calendar months payment has not yet been credited to his account and immediately prior to the first day of the current excluding contracts for the purchase or sale of unissued month, but not more than 75 percent of the current securities. market value: Provided, That until July 1, 1936, (i) The term "unrestricted account" means an for the purpose of this regulation, the lowest price account in which at any given time the adjusted debit at which a security has sold on or after July 1, 1933, balance equals or is less than the maximum loan value but prior to the first day of the current month, at such time of the securities in the account; and any shall be considered as the lowest market price of account which is an unrestricted account at the beginsuch security during the preceding 36 calendar ning of business on any given day may for the purposes months; and Provided, That the lowest market of this regulation be considered an unrestricted account price which could be used under the provisions of throughout such day. this regulation during any calendar month may be (j) The term "restricted account" means an account used during the first 7 calendar days of the succeedin w^hich, at the beginning of business on any given day, ing calendar month. the adjusted debit balance exceeds the maximum loan value at such time of the securities in the account: (b) Extensions of credit to other members, brokers, Provided, however, That, if during the course of a day, and dealers.—In a special account recorded separately, as a result of the deposit of cash and/or securities or any creditor may extend credit on any registered the sale or substitution of securities by or on behalf of security to any other member, broker, or dealer in an the customer the maximum loan value of the securities amount not greater than the maximum loan value of in the account becomes equal to or greater than the such security, which shall be (except in the case of an adjusted debit balance, such account may be deemed exempted security) 80 percent of the current market an unrestricted account throughout such day. value of such security: Provided, That (1) such other (k) The term "initial extension of credit" means any member, broker, or dealer is subject to the provisions new extension of credit in an account or any increase of this regulation or has places of business only in in the amount of credit outstanding in an account. foreign countries, (2) such credit is extended or main- (I) The term "net withdrawal" means any payment tained solely for the purpose of enabling such member, or delivery from an account of money and/or registered broker, or dealer to carry accounts for his customers and/or exempted securities having an aggregate current other than his partners, and (3) any credit extended or Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

678 FEDERAL RESERVE BULLETIN 0 CTOBER 1934 maintained by such creditor to or for such other mem- mitment and/or minus any unrealized gain on each ber, broker, or dealer for the purpose of purchasing or such commitment not exceeding the margin therecarrying securities for his own account or for the account on; and of his firm or any of his partners shall not be included (5) In the case of a guarantor's account, the in such special account and shall be subject to the other aggregate of the amounts required to make each provisions of this section. account guaranteed by such guarantor an unre- (c) Extension of credit to distributors, syndicates, stricted account: Provided, That in the case of no etc.—In a special account recorded separately, any such guaranteed account shall the amount exceed creditor may extend credit on any registered security in that to which the guaranty is limited; an amount not greater than the maximum loan value and deducting therefrom the sum of the following items: thereof, which shall be (except in the case of an exempted (6) The net credit balance, if any, of the account; security) 80 percent of the current market value of such (7) Any amount to be received for securities security: (other than unissued securities) sold for the account of the customer but for which payment has not yet (1) To any dealer, for the purpose of financing been credited to his account; and the distribution of an issue of securities at whole- (8) Any amount needed but not yet received by sale or retail; or the creditor to provide any margin required by this (2) To any group, joint account or syndicate, for regulation: Provided, That (a) a demand for such the purpose of underwriting or distributing an margin shall have been made in, or confirmed by, issue of securities. a letter or telegram which the creditor shall have (d) Arbitrage accounts.—If such transactions are sent to the customer at his last known address and recorded separately in a special account and are not (6) the time within which the creditor is required used for the purpose of evading or circumventing the by this regulation to obtain such margin has not provisions of this regulation, any bona fide arbitrage expired. transactions in securities and any credit extended or For the purposes of this regulation, the adjusted debit maintained to or for a customer for the purpose of balance of every account in which any credit is extended financing such transactions shall be exempt from the or maintained for the purpose of purchasing or carrying other provisions of this regulation: Provided, That the securities shall be computed in accordance with the customer shall maintain a margin equal to 2 percent of above rules, regardless of whether it be a combined any net debit balance in such account, unless the ac- account or a special account. In case a customer has count contains no securities except exempted securities. more than one account (other than special accounts) (e) Exempted securities.—In an account which con- with a creditor, his adjusted debit balance and the tains both exempted securities and registered nonex- maximum loan value of the securities in his account empted securities, the maximum loan value of an ex- shall be calculated, for the purposes of this regulation, empted security shall be regarded as not more than the on the basis of his combined account, taking into concurrent market value of such security: Provided, how- sideration all accounts between such customer and such ever, That nothing in this regulation shall be construed creditor except special accounts. In computing the as preventing any exchange or any creditor from requir- adjusted debit balance of each special account, there ing margin on, or assigning lower loan values to, ex- shall be taken into consideration only the items involved empted securities. in that particular account. (/) Adjusted debit balance.—For the purpose of this (g) Current market value.—For the purpose of ascerregulation, the adjusted debit balance of an account taining the current market value of a security at the shall be calculated by taking the sum of the following time of and in connection with a purchase or sale of such security, the price at which such security is puritems: chased or sold (whether or not as part of a substitution (1) The net debit balance, if any, of the account; of securities or other transaction), shall be used in com- (2) Any amount to be paid for securities (other puting the current market value of such security within than unissued securities) bought for the account of the meaning of this regulation. the customer but not yet debited to his account; For the purpose of ascertaining the current market (3) The current market value of any securities value of any security in an account, at any time other sold short in the account (other than unissued than the time of its purchase or sale, the creditor securities) plus the margin customarily required shall have the option of using as the price of such by the creditor on such short commitments; security either the closing sale or the closing bid price (4) The amount of any margin customarily refor such security on the preceding business day, as quired by the creditor on every future commitment shown by any regularly published reporting or quotain unissued securities, in commodities, or in foreign tion service used by such creditor (except that such bid exchange, and/or in connection with the creditor's price shall not be deemed to be the current market indorsement or guaranty of any put, call or other value of a security sold short). In the absence of option, plus any unrealized loss on each such com- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 1934 FEDERAL RESERVE BULLETIN 679 any such closing sale price, the creditor shall have accordance with section 4 (e) of this regulation, addithe option of using either any such bid price on such tional margin in an amount sufficient to make such preceding business day (except that such bid price account an unrestricted account. shall not be deemed to be the current market price of (d) Transactions in restricted accounts.—A creditor a security sold short), or the price at which the last sale shall not permit a customer to make in a restricted was recorded, if such sale occurred during the current account any transaction which, in combination with or preceding calendar month, as shown by any regu- any other transactions made on the same day and larly published reporting or quotation service used by together with demands for additional margin in consuch creditor. In the event that none of the prices nection therewith, results in any increase of the excess above described is available, the creditor may use any of the adjusted debit balance of the account over the reasonable estimate of the market price of such maximum loan value of the securities in the account, security. or results in any net withdrawal of cash and/or securi- (h) Lowest market price.—The lowest market price ties: Provided, however, That a creditor may permit a of a registered security during a specified time means customer to make any transaction or combination of the lowest price at which such security has sold during transactions which causes the account to become an such time on the national securities exchanges on unrestricted account: and Provided, That any substiwhich it is or has been registered (including such tution of securities consisting of a sale of securities in exchanges during that part of the specified time which the account and the purchase of other securities, if preceded their respective registrations as national completed within a period of two successive business securities exchanges under the Securities Exchange days, may be considered for the purposes of this section Act of 1934): Provided, That, if such security is a as a single transaction occurring on the day on which stock upon which there has been any stock dividend the purchase occurs. amounting to more than 10 percent in any one calendar (e) Time when margin must be obtained.— Whenyear, or any reduction or increase in the number of ever the creditor is required to demand additional • shares by calling in the outstanding shares and issuing margin in order to comply with this regulation, he shall in substitution therefor a smaller or larger number of demand the required amount of margin as promptly as shares, any prices established before such dividend possible and shall obtain such margin as promptly as or change in number of shares shall be adjusted there- possible in view of the established usages of the trade for. A creditor using a figure published as such lowest and the circumstances of the case and in all events market price in any record published or approved by before the expiration of three full business days (exany national securities exchange may rely on such clusive of Saturdays, Sundays and holidays) from the figure for the purposes of this regulation. date of the purchase or other transaction on account of which such margin is required, unless, within such SECTION 4. EXTENSION AND MAINTENANCE OF time such account is brought into conformity with this CREDIT regulation by some other method: Provided, That, in (a) Statutory provision.—Under the provisions of exceptional cases, any regularly constituted committee subsection (c) of section 7 of the Securities Exchange of a national securities exchange having jurisdiction Act of 1934, it is unlawful for any member of a over the business conduct of its members, of which exnational securities exchange or any broker or change the creditor is a member or through which his dealer who transacts a business in securities through transactions are effected, may grant a further extension the medium of any such member, directly or indirectly, of time, not exceeding ten days, on application of the to extend or maintain credit or arrange for the exten- creditor, if such committee is satisfied that the creditor sion or maintenance of credit to or for any customer is acting in good faith and that the circumstances waron any registered security (other than an exempted rant such action: Provided, however, That, if the acsecurity) in contravention of the regulations of the count be a restricted account (1) in the case of a with- Federal Reserve Board. drawal of cash, the necessary amount of securities must (b) General rule.—A creditor may permit credit to be deposited on the same day; (2) in the case of a withbe maintained in any account in accordance with the drawal of securities, the necessary amount of cash must provisions of this section, regardless of reductions in be deposited on the same day; and (3) in the case of a the customer's equit}^ resulting from changes in market substitution of securities (not involving a sale of securiprices and/or from charges to the account of the cus- ties in the account and the purchase of other securities), tomer permitted under section 8 (6) of this regulation. the securities substituted must be deposited on the same (c) Transactions in unrestricted accounts.—A credi- day that the securities for which they are substituted tor shall not permit any customer to make in an un- are withdrawn. restricted account any transaction or combination of (/) Time when payment or margin is deemed to be transactions which would cause such account to received.—For the purposes of this regulation, any become a restricted account, unless he demands, in creditor who shall in good faith accept any check or Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

680 FEDERAL RESERVE BULLETIN OCTOBER 1934 draft drawn on a bank which in the ordinary course of such member, directly or indirectly to extend or mainbusiness is payable on presentation or any order on a tain credit or arrange for the extension or maintenance savings account with passbook attached, shall be of credit to or for any customer without collateral or on deemed to have received paj^ment of the amount of any collateral other than exempted and/or registered such check, draft, or order within the meaning of this securities except as expressly permitted by this reguregulation at the time such check, draft, or order is lation. received; and any creditor who shall in good faith ship (6) Credit not for purchasing or carrying securities.— securities with sight draft attached shall be deemed to In a special account recorded separately, a creditor have received payment of the amount of such sight may, notwithstanding any other provision of this regudraft at the time of the shipment of the securities to lation, extend credit to any customer, without collateral which such sight draft is attached: Provided, That, if or on any collateral other than non-exempted registered such check, draft, order, or sight draft is not paid on securities, for any bona fide commercial, industrial, or the day of presentation, the creditor shall, before the other purpose except the purpose of purchasing or expiration of three full business days from the receipt carrying securities or of evading or circumventing the of notice of such nonpayment, obtain actual payment, provisions of this regulation. cancel the sale, resell the securities for the account of (c) Additional collateral for maintenance of existing the customer, or obtain the deposit of additional se- credits.—As security for the maintenance of credits curities having a loan value sufficient to provide the initially extended prior to October 1, 1934, or extended margin needed. in conformity with this regulation, for the purpose of Any member, broker, or dealer who shall receive pay- purchasing or carrying securities, a creditor may until ment of any amount in any foreign currency capable of July 1, 1937, accept or retain as collateral, in addition being converted without restriction into United States to exempted securities and registered securities, anj^ currency, shall be deemed, for the purposes of this regu- collateral whatsoever: Provided, That collateral other lation, to have received payment of an amount equal to than exempted or registered securities (1) shall not be the value of the foreign currency so paid, computed at the basis of any additional extension of credit, and (2) the buying rate for cable transfers of such foreign cur- shall be given no value in determining the maximum rency on the preceding business day as determined and loan value of the securities in the account. certified by the Federal Reserve Bank of New York and published by the Secretary of the Treasury pur- SECTION 6. CASH TRANSACTIONS suant to the provisions of section 522 of title 4 of the Tariff Act of 1930. Any person who shall deposit with Notwithstanding any other provision of this regulaa creditor any such foreign currency may, for the pur- tion, a creditor may, subject to the conditions specified pose of determining the adjusted debit balance in an in this section, make extensions of credit for limited account of such person, be credited with the value of periods not exceeding seven days and effect other such foreign currency computed as hereinabove transactions which are incidental to bona fide cash prescribed. transactions. A bona fide cash transaction is one in which a creditor In the case of any special account wiiich grows out of sells a security to a customer or purchases a security regular correspondent relationships between a creditor for a customer upon an agreement made in good faith, and a customer who is not located in the same city and and not to evade or circumvent the provisions of this who is a member, broker, or dealer, securities which are regulation, that the customer will promptly make full In transit from such customer to the creditor for the cash payment for the security so sold or purchased. purpose of increasing the customer's margin may, for Every creditor shall record separately in a special the purposes of this regulation, be deemed to have been account all such bona fide cash transactions in connecreceived by the creditor at the time he receives and tion with which he extends credit and shall record the accepts in good faith a telegram or letter from the full details of each such cash transaction, including the customer stating that such securities have been shipped name and address of the customer, a description of the to the creditor. security involved, the terms and date of sale and the date and manner of payment. SECTION 5. EXTENSION OR MAINTENANCE OF CREDIT No extension of credit which is incidental to any WITHOUT COLLATERAL OR ON COLLATERAL OTHER such bona fide cash transaction shall constitute a viola- THAN EXEMPTED OR REGISTERED SECURITIES tion of this regulation, (1) if payment for such securi- (a) General rule.—Under the provisions of subsec- ties is actually received, or the creditor is deemed to tion (c) of section 7 of the Securities Exchange Act of have received payment for the purpose of this regula- 1934, it is unlawful for any member of a national tion, at or within the time specified above, or (2) if the securities exchange or any broker or dealer who trans- creditor cancels the sale or resells the securities for the acts a business in securities through the medium of any account of the customer within two days after the time Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

6S1 OCTOBER 1934 FEDERAL RESERPE BULLETIN when payment should have been received under this SECTION 8. ADMINISTRATIVE ADJUSTMENTS AND DETAILS subsection: Provided, however, That, in exceptional (a) Borrowing and lending securities.—Neither the cases, any regularly constituted committee of a national bona fide deposit of cash, in order to borrow securities securities exchange having jurisdiction over the busifor the purpose of making delivery of such securities in ness conduct of its members, of which exchange the the case of short sales, delayed deliveries, and other creditor is a member or through which his transactions similar transactions, nor the bona fide lending of securiare effected, may, on application of the creditor, grant ties for such purposes shall be considered an extension a further extension of time not exceeding 35 days or or maintenance of credit within the meaning of this authorize the creditor to extend credit on such security regulation. subject to the provisions of this regulation, if such (6) Interest, commissions, etc.—Interest on credit committee is satisfied that the creditor is acting in good maintained in an account, commissions on transactions faith and that the circumstances warrant such action. in an account, sale or transfer taxes on transactions in an account, premiums on securities borrowed in con- SECTION 7. ACCOUNTS EXISTING ON OCTOBER 1, 1934 nection with short sales or to effect delivery, dividends, (a) Old accounts.—A creditor may designate any interest, rights or other distributions due on borrowed account maintained by him at the opening of business securities, and any service charges which the creditor on October 1, 1934, as an old account by making an may impose, may be debited to such account in accordappropriate entry in the record of such account prior ance with the usual practice and shall be taken into to November 15, 1934, and such creditor may carry consideration in calculating the net balance of such such account separately as a special account and main- account; but the debiting of any such item to an account tain credit and permit transactions therein: Provided, shall not be considered a violation of this regulation, That, in order to prevent the circumvention of this whether or not such account is a restricted account and regulation, such transactions and the maintenance of whether or not the debiting of such item causes an unsuch credit shall be subject to the provisions of section restricted account to become a restricted account. 4 of this regulation: Provided, That the creditor shall (c) Declaration as to purpose of loan.—Every exnot at any time permit the customer to make any tension of credit on a registered security (other than an transaction or combination of transactions in such old exempted security) shall be deemed for the purposes of account which would increase the adjusted debit bal- this regulation to be for the purpose of purchasing or ance of such account above the amount existing at the carrying securities, unless the customer shall file with time such transaction or combination of transactions the creditor a written declaration signed by the cusis instituted: Provided, however, That, if such account tomer which shall state the use to be made of such is an unrestricted account on October 15, 1934, the credit and which shall state specifically that such credit creditor, at any time prior to November 15, 1934, may is not for the purpose of purchasing or carrying securipermit the customer to withdraw therefrom such ties or of evading or circumventing the provisions of amount of money and/or securities as will not make this regulation. In any case in which a creditor is resuch account a restricted account. Any account not quired to comply with the provisions of this regulation so designated as an old account prior to November 15, if an extension of credit is for the purpose of purchasing 1934, shall be subject to all the provisions of this or carrying securities, he may rely upon a written decregulation. laration of the customer such as that required above, (6) New accounts.—Notwithstanding any other pro- unless he knows the statement to be false or has inforvision of this regulation, a creditor may at any time mation which would put a prudent man upon inquiry permit a customer having an old account, recorded and if investigated with reasonable diligence would lead separately as above provided, to establish and maintain to the discovery of the falsity of the statement. one or more new accounts which new accounts shall be (d) Guaranteed accounts.—Not withstanding the subject to all the applicable provisions of this regulation, definitions of the terms "unrestricted account" and except that they shall not be affected by the status of, "restricted account", a creditor may regard as an or transactions in, the old account. unrestricted account any account which is guaranteed (c) Consolidation of old accounts with new ac- in writing for an amount sufficient to make such account counts.—At any time prior to July 1, 1937, a creditor an unrestricted account by a person who has an account may permit or require any customer to consolidate his with such creditor containing securities of sufficient old account with any of his new accounts and thereafter loan value to make such guaranteed account an unrethe consolidated account shall be considered a new stricted account in addition to providing the margin account within the meaning of this regulation: Pro- required by this regulation on the guarantor's account. vided, That all old accounts shall be consolidated, 0) Transfer of accounts.—In the event of the transliquidated, or otherwise disposed of on or before July 1, fer of an account from one creditor to another, such 1937. account may be treated for the purposes of this regula- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

682 FEDERAL RESERVE BULLETIN OCTOBER 1934 tion as if it had been maintained by the transferee from which is still in force and which is in the form prethe date of its origin. scribed by this regulation; or (/) Credit for clearance of securities.—The extension (3) To the extent to which, under the provisions or maintenance of any credit which is maintained for of this regulation, the Federal Reserve Board peronly a fraction of a day (that is, for only part of the mits loans between such members and/or brokers time between the beginning of business and midnight and/or dealers, or to meet emergency needs. on the same day) shall be disregarded for the purposes (b) Borrowing from nonmember banks.—Each nonof this regulation, if it is incidental to the clearance of member bank which has filed an agreement in the form transactions in securities directly between members or prescribed by this regulation will be given a certificate through an agency organized or employed by the evidencing that fact. Interested persons may obtain members of a national securities exchange for the from the Federal Reserve agent at any Federal Reserve purpose of effecting such clearances. bank the names of banks wrhich have filed such agree- (g) Innocent mistakes.—If any failure to comply ments and information as to whether in each case the with this regulation results from an innocent mistake agreement is still in force. made in good faith in executing a transaction, recording, (c) Borrowing from other members, brokers, and determining, or calculating any loan, balance, market dealers.—A creditor may borrow from another creditor price, loan value, or other administrative adjustment or in the ordinary course of business as a broker or dealer detail, the creditor shall not be deemed guilty of a on any registered security to the extent and subject to violation of this regulation: Provided, That (1) the the terms upon which the latter may extend credit to mistake is corrected promptly, (2) any additional him in accordance with the provisions of this regulamargin required is obtained within the time allowed tion and subject to such rules and regulations as the by this regulation from the date of the discovery of the Securities and Exchange Commission may prescribe mistake. under the provisions of section 8 (c) of the Securities (h) Transactions outside United States.—In view of Exchange Act of 1934. the provisions of section 30 (b) of the Securities Ex- (d) Emergency loans.—Notwithstanding any other change Act of 1934, nothing in this regulation shall provision of this regulation, any member of a national apply to any creditor insofar as he transacts a business securities exchange, or any group of such members, in securities without the jurisdiction of the United may, with the approval of any regularly constituted States, unless he transacts such business in contra- committee of a national securities exchange having vention of such rules and regulations as the Securities jurisdiction over the business conduct of such members, and Exchange Commission may prescribe as necessary make loans to meet the emergency needs of any other or appropriate to prevent the evasion of the Securities such member or of a broker or dealer transacting Exchange Act of 1934. business through the medium of any such member; and all such loans, whether made prior or subsequent SECTION 9. REPORTS to the effective date of this regulation, may be main- Every member of a national securities exchange and tained, renewed, and/or extended until the Federal Reevery broker or dealer who transacts a business in serve Board shall determine that the emergency justisecurities through the medium of any such member, fying such loan has ceased to exist: Provided, That any shall, in the manner and form to be prescribed by the such committee approving the making, renewal, or ex- Federal Reserve Board, make such periodic, special, tension of any such loan, made after the effective date and/or other reports as the Federal Reserve Board may of this regulation, shall, within 10 days, make a written require from time to time. report of all facts relative thereto to the Federal Reserve agent of the district in which such exchange is SECTION 10. BORROWINGS BY MEMBERS, BROKERS, located. Any member of a national securities ex- AND DEALERS change and any broker or dealer who transacts a business in securities through the medium of any such (a) General rule.—Under the provisions of section 8 member may borrow in accordance with the provisions of the Securities Exchange Act of 1934 it is unlawful for of this section for the purpose of meeting his emergency any member of a national securities exchange, or any needs. broker or dealer who transacts a business in securities through the medium of any such member, directly or SECTION 11. QUALIFICATION OF NONMEMBER BANKS TO indirectly to borrow in the ordinary course of business LEND TO MEMBERS, BROKERS, AND DEALERS as a broker or dealer on any registered security (other than an/exempted security) except: (a) Form of agreement,—In order to qualify, pur- (1) From or through a member bank of the suant to the provisions of subsection (a) of section 8 of Federal Reserve System; or the Securities Exchange Act of 1934, as a bank from (2) From any nonmember bank which shall have which it is lawful for any member of a national securifiled with the Federal Reserve Board an agreement ties exchange or any broker or dealer who transacts Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

683 OCTOBER 1934 FEDERAL RESERVE BULLETIN a business in securities through the medium of any- (d) Termination of agreements.—Any agreement on such member, to borrow, in the ordinary course of F.R.B. Form T-l or F.R.B. Form T-2 filed with the business as a broker or dealer, on registered securities Federal Reserve Board shall be subject to termination (other than exempted securities), a bank which is not at any time by order of the Board, after appropriate a member of the Federal Reserve System and which is notice and opportunity for hearing, because of any not included in the classes of banks referred to in sub- failure by the bank filing such agreement to comply section (b) of this section, shall file, in the manner with the provisions thereof or with the provisions of hereinafter prescribed, an agreement on F.R.B. Form the Securities Exchange Act of 1934, the Federal T-l, which form is hereby made a part of this regula- Reserve Act, as amended, or the Banking Act of 1933, tion. The execution of such agreement shall be au- which are applicable to member banks and which relate thorized by the adoption by the board of directors or to the use of credit to finance transactions in securities, other governing body of the bank of a resolution in or with such rules and regulations as may be prescribed the form contained in F.R.B. Form T-l and the agree- pursuant to such provisions of law or for the purpose ment when filed shall be accompanied by a copy of of preventing evasions thereof. For any willful violasuch resolution certified by the secretary or other duly tion of such agreement, the offending bank will be authorized officer of the bank in the manner provided subject to the penalties prescribed by the Securities for in F.R.B. Form T-l. Exchange Act of 1934 for violations of rules and regu- (6) Banks in territories or insular possessions; lations prescribed thereunder. branches of foreign banks.—In order to qualify, pur- (e) Forms available.—Copies of F.R.B. Form T-l suant to the provisions of subsection (a) of section 8 and F.R.B. Form T-2 may be obtained from the of the Securities Exchange Act of 1934, a bank which I ederal Reserve agents at the Federal Reserve banks. is not a member of the Federal Reserve System and which has its principal place of business in a Territory SECTION 12. ADDITIONAL REQUIREMENTS BY EXCHANGES or insular possession of the United States (including AND CREDITORS the Philippine Islands and the Canal Zone) or which is Nothing in this regulation shall be construed as not a member of the Federal Reserve Sj^stem and preventing an exchange from adopting and enforcing which has its principal place of business in a foreign any rule or regulation requiring its members to secure country and has a branch or agency in the United or maintain higher margins or otherwise restricting States, shall file in lieu of the agreement on F.R.B. the amount of credit which may be extended by such Form T-l an agreement on F.R.B. Form T-2, which members. form is hereby made a part of this regulation. Such Nothing in this regulation shall be construed as agreement when filed shall be accompanied by proof modifying the right of any creditor to require addiof the authorization of its execution in the manner tional security for the maintenance of any credit or as provided on F.R.B. Form T-2. restricting the right of any creditor to refuse to extend (c) Method and evidence of filing.—Duplicate origcredit or to sell any securities or property held as colinals of F.R.B. Form T-l, when properly executed, lateral for any loan or credit extended by him. shall be delivered to the Federal Reserve agent at the Federal Reserve bank of the district in which is situated APPENDIX the qualifying bank's principal place of business and such delivery shall constitute filing with the Federal There are printed below certain provisions of the Reserve Board. A certificate evidencing such filing Securities Exchange Act of 1934 which are pertinent will thereupon be delivered to the qualifying bank by to the subject matter of this regulation: the Federal Reserve agent. SEC. 3. (a) * * * Duplicate originals of F.R.B. Form T-2, when (3) The term "member" when used with respect to an exchange means any person who is permitted either properly executed, shall be delivered to the Federal to effect transactions on the exchange without the Reserve agent at the Federal Reserve Bank of New York services of another person acting as broker, or to make or the Federal Reserve agent at the Federal Reserve use of the facilities of an exchange for transactions Bank of San Francisco and delivery to either such thereon without payment of a commission or fee or with the payment of a commission or fee which is less Federal Reserve agent shall constitute filing with the than that charged the general public, and includes any Federal Reserve Board. The Federal Reserve agent firm transacting a business as broker or dealer of which to whom such delivery is made shall thereupon send a a member is a partner, and any partner of anv such firm. certificate evidencing such filing to the qualifying (4) The term "broker" means any person engaged bank and to each branch or agency of the qualifying in the business of effecting transactions in securities bank which is listed in F.R.B. Form T-2 and shall at for the account of others, but does not include a bank. the same time send appropriate notice of such filing (5) The term "dealer" means any person engaged to the Federal Reserve agent at the Federal Reserve in the business of buying and selling securities for his own account, through a broker or otherwise, but bank in each Federal Reserve district in which is does not include a bank, or any person insofar as he situated one or more of such branches or agencies. buys or sells securities for his own account, either Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

684 FEDERAL RESERVE BULLETIN OCTOBER 193* individually or in some fiduciary capacity, but not as a thereunder and the applicable laws of the State in part of a regular business. which it is located. (6) The term "bank" means (A) a banking institu- SEC. 7. (a) For the purpose of preventing the excestion organized under the laws of the United States, (B) sive use of credit for the purchase or carrying of secura member bank of the Federal Reserve System, (C) ities, the Federal Reserve Board shall, prior to the any other banking institution, whether incorporated or effective date of this section and from time to time not, doing business under the laws of any State or of thereafter, prescribe rules and regulations with respect the United States, a substantial portion of the business to the amount of credit that may be initially extended of which consists of receiving deposits or exercising and subsequently maintained on any security (other fiduciary powers similar to those permitted to national than an exempted security) registered on a national banks under section 11 (k) of the Federal Reserve Act, securities exchange. For the initial extension of credit, as amended, and which is supervised and examined by such rules and regulations shall be based upon the State or Federal authority having supervision over following standard: An amount not greater than banks, and which is not operated for the purpose of whichever is the higher of— evading the provisions of this title, and (D) a receiver, (1) 55 per centum of the current market price conservator, or other liquidating agent of any institu- of the security, or tion or firm included in clauses (A), (B), or (C) of (2) 100 per centum of the lowest market price this paragraph. of the security during the preceding thirty-six (9) The term "person" means an individual, a calendar months, but not more than 75 per corporation, a partnership, an association, a joint- centum of the current market price. stock company, a business trust, or an unincorporated Such rules and regulations may make appropriate organization. provision with respect to the carrying of undermargined (10) The term "security" means any note, stock, accounts for limited periods and under specified contreasury stock, bond, debenture, certificate of interest ditions; the withdrawal of funds or securities; the or participation in any profit-sharing agreement or in substitution or additional purchases of securities; the any oil, gas, or other mineral royalty or lease, any transfer of accounts from one lender to another; collateral-trust certificate, preorganization certificate special or different margin requirements for delayed or subscription, transferable share, investment con- deliveries, short sales, arbitrage transactions, and tract, voting-trust certificate, certificate of deposit, for securities to which paragraph (2) of this subsection does a security, or in general, any instrument commonly not apply; the bases and the methods to be used in knowTn as a "security"; or any certificate of interest or calculating loans, and margins and market prices; and participation in, temporary or interim certificate for, similar administrative adjustments and details. For receipt for, or warrant or right to subscribe to or the purposes of paragraph (2) of this subsection, until purchase, any of the foregoing; but shall not include July 1, 1936, the lowest price at which a security has currency or any note, draft, bill of exchange, or banker's sold on or after July 1, 1933, shall be considered as the acceptance which has a maturity at the time of issuance lowest price at which such security has sold during the of not exceeding nine months, exclusive of days of grace, preceding thirty-six calendar months. or any renewal thereof the maturity of which is likewise (b) Notwithstanding the provisions of subsection limited. (a) of this section, the Federal Reserve Board, may, (11) The term "equity security" means any stock or from time to time, with respect to all or specified similar security; or any security convertible, with or securities or transactions, or classes of securities, or without consideration, into such" a security, or carrying classes of transactions, by such rules and regulations any warrant or right to subscribe to or purchase such a (1) prescribe such lower margin requirements for the security; or any such warrant or right; or any other initial extension or maintenance of credit as it deems security which the Commission shall deem to be of necessary or appropriate for the accommodation of similar" nature and consider necessary or appropriate, commerce and industry, having due regard to the by such rules and regulations as it may prescribe in the general credit situation of the country, and (2) prepublic interest or for the protection of investors, to scribe such higher margin requirements for the initial treat as an equity security. extension or maintenance of credit as it may deem (13) The terms "buy" and "purchase" each include necessary or appropriate to prevent the excessive use of any contract to buy, purchase, or otherwise acquire. credit to finance transactions in securities. (14) The terms "sale" and "sell" each include any (c) It shall be unlawful for any member of a national contract to sell or otherwise dispose of. securities exchange or any broker or dealer who trans- SEC. 3. (b) The Commission and the Federal Re- acts a business in securities through the medium of any serve Board, as to matters within their respective juris- such member, directly or indirectly to extend or maindictions, shall have power by rules and regulations to tain credit or arrange for the extension or maintenance define technical, trade, and accounting terms used in of credit to or for any customer— this title insofar as such definitions are not inconsistent (1) On any security (other than an exempted with the provisions of this title. security) registered on a national securities exchange, SEC. 6. (b) No registration shall be granted or in contravention of the rules and regulations wThich the remain in force unless the rules of the exchange include Federal Reserve Board shall prescribe under subprovision for the expulsion, suspension, or disciplining sections (a) and (b) of this section. of a member for conduct or proceeding inconsistent (2) Without collateral or on any collateral other with just and equitable principles of trade, and declare than exempted securities and/or securities registered that the willful violation of any provisions of this title or upon a national securities exchange, except in accordany rule or regulation thereunder shall be considered ance with such rules and regulations as the Federal conduct or proceeding inconsistent with just and Reserve Board may prescribe (A) to permit under equitable principles of trade. specified conditions and for a limited period any (c) Nothing in this title shall be construed to prevent such member, broker, or dealer to maintain a credit any exchange from adopting and enforcing any rule not initially extended in conformity with the rules and inconsistent with this title and the rules and regulations regulations of the Federal Reserve Board, and (B) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

685 'OCTOBER 1934 FEDERAL RESERVE BULLETIN to permit the extension or maintenance of credit in Any such agreement filed with the Federal Reserve cases where the extension or maintenance of credit Board shall be subject to termination at any time by is not for the purpose of purchasing or carrying order of the Board, after appropriate notice and securities or of evading or circumventing the provi- opportunit}^ for hearing, because of any failure by sions of paragraph (1) of this subsection. such bank to comply with the provisions thereof or (d) It shall be unlawful for any person not subject with such provisions of law or rules or regulations; to subsection (c) to extend or maintain credit or to and, for any willful violation of such agreement, such arrange for the extension or maintenance of credit bank shall be subject to the penalties provided for for the purpose of purchasing or carrying any security violations of rules and regulations prescribed under registered on a national securities exchange, in contra- this title. The provisions of sections 21 and 25 of this vention of such rules and regulations as the Federal title shall apply in the case of any such proceeding or Reserve Board shall prescribe to prevent the excessive order of the Federal Reserve Board in the same manner use of credit for the purchasing or carrying of or as such provisions apply in the case of proceedings and trading in securities in circumvention of the other orders of the Commission. provisions of this section. Such rules and regulations (b) To permit in the ordinary course of business as may impose upon all loans made for the purpose of a broker his aggregate indebtedness to all other persons, purchasing or carrying securities registered on na- including customers' credit balances (but excluding tional securities exchanges limitations similar to those indebtedness secured by exempted securities), to exceed imposed upon members, brokers, or dealers by sub- such percentage of the net capital (exclusive of fixed section (c) of this section and the rules and regula- assets and value of exchange membership) employed in tions thereunder. This subsection and the rules and the business, but not exceeding in any case 2,000 per regulations thereunder shall not apply (A) to a loan centum, as the Commission may by rules and regulamade by a person not in the ordinary course of his tions prescribe as necessary or appropriate in the public business, (B) to a loan on an exempted security, interest or for the protection of investors. (C) to a loan to a dealer to aid in the financing of the (c) In contravention of such rules and regulations distribution of securities to customers not through as the Commission shall prescribe for the protection of the medium of a national securities exchange, (D) investors to hypothecate or arrange for the hypotheto a loan by a bank on a security other than an equity cation of any securities carried for the account of any security, or (E) to such other loans as the Federal customer under circumstances (1) that will permit the Reserve Board shall, by such rules and regulations commingling of his securities without his written conas it may deem necessary or appropriate in the public sent with the securities of any other customer, (2) that interest or for the protection of investors, exempt, will permit such securities to be commingled with the •either unconditionally or upon specified terms and securities of any person other than a bona fide cusconditions or for stated periods, from the operation tomer, or (3) that will permit such securities to be of this subsection and the rules and regulations hypothecated, or subjected to any lien or claim of the thereunder. pledgee, for a sum in excess of the aggregate indebted- (e) The provisions of this section or the rules and ness of such customers in respect of such securities. regulations thereunder shall not apply on or before (d) To lend or arrange for the lending of any securi- July 1, 1937, to any loan or extension of credit made ties carried for the account of any customer without prior to the enactment of this title or to the mainte- the written consent of such customer. nance, renewal, or extension of any such loan or credit, SEC. 17. (b) Any broker, dealer, or other person except to the extent that the Federal Reserve Board extending credit who is subject to the rules and regulamay by rules and regulations prescribe as necessary to tions prescribed by the Federal Reserve Board pursuant prevent the circumvention of the provisions of this to this title shall make such reports to the Board as it section or the rules and regulations thereunder by may require as necessary or appropriate to enable it to means of withdrawals of funds or securities, substitu- perform the functions conferred upon it by this title. tions of securities, or additional purchases or by any If any such broker, dealer, or other person shall fail to other device. make any such report or fail to furnish full information SEC. 8. It shall be unlawful for any member of a therein, or, if in the judgment of the Board it is othernational securities exchange, or any broker or dealer wise necessary, such broker, dealer, or other person who transacts a business in securities through the shall permit such inspections to be made by the Board medium of any such member, directly or indirectly— with respect to the business operations of such broker, (a) To borrow in the ordinary course of business as dealer, or other person as the Board may deem necesa broker or dealer on any security (other than an sary to enable it to obtain the required information. exempted security) registered on a national securities SEC. 23. (a) The Commission and the Federal Reexchange except (1) from or through a member bank serve Board shall each have power to make such rules of the Federal Reserve System, (2) from any non- and regulations as may be necessary for the execution member bank which shall have filed with the Federal of the functions vested in them by this title, and may Reserve Board an agreement, which is still in force for such purpose classify issuers, securities, exchanges, and which is in the form prescribed by the Board, and other persons or matters within their respective undertaking to comply with all provisions of this Act, jurisdictions. the Federal Reserve Act, as amended, and the Banking SEC. 29. (a) Any condition, stipulation, or provision Act of 1933, which are applicable to member banks binding any person to waive compliance with any and which relate to the use of credit to finance trans- provision of this title or of any rule or regulation thereactions in securities, and with such rules and regula- under, or of any rule of an exchange required thereby tions as may be prescribed pursuant to such provisions shall be void. of law or for the purpose of preventing evasions thereof, (b) Every contract made in violation of any provior (3) in accordance with such rules and regulations as sion of this title or of any rule or regulation therethe Federal Reserve Board may prescribe to permit under, and every contract (including any contract for loans between such members and/or brokers and/or listing a security on an exchange) heretofore or heredealers, or to permit loans to meet emergency needs. after made the performance of which involves the viola- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

686 FEDERAL RESERVE BULLETIN OCTOBER 1934 tion of, or the continuance of any relationship or arisen in connection with section 7 (a) of Regupractice in violation of, any provision of this title or any rule or regulation thereunder, shall be void (1) as lation T, the Board has issued the following regards the rights of any person who, in violation of interpretations: any such provision, rule, or regulation, shall have made or engaged in the performance of any such contract, 1. The account that may be designated as and (2) as regards the rights of any person who, not an old account is the account as it stood at the being a party to such contract, shall have acquired any right thereunder with actual knowledge of the facts by opening of business on October 1, 1934, with reason of which the making or performance of such such changes as could have been permitted in contract was in violation of any such provision, rule or regulation. such account under section 7 (a) of the regula- (c) Nothing in this title shall be construed (1) to tion if the account had been designated as an affect the validity of any loan or extension of credit old account at the beginning of business on (pr any extension or renewal thereof) made or of any lien created prior or subsequent to the enactment of October 1, 1934. this title, unless at the time of the making of such loan or extension of credit (or extension or renewal 2. The creditor may designate such account thereof) or the creating of such lien, the person mak- as an old account at any time prior to Noveming such loan or extension of credit (or extension or renewal thereof) or acquiring such lien shall have actual ber 15, 1934, and may permit transactions in knowledge of facts by reason of which the making the account pending such designation; but of such loan or extension of credit (or extension or renewal thereof) or the acquisition of such lien is a there may not be included in any account violation of the provisions of this title or any rule or designated as an old account any transaction regulation thereunder, or (2) to afford a defense to the collection of any debt or obligation or the enforcement which could not have been made in the account of an\ lien by any person who shall have acquired such if it had been designated as an old account at debt, obligation, or lien in good faith for value and without actual knowledge of the violation of any pro- the beginning of business on October 1, 1934, vision of this title or any rule or regulation thereunder and any transaction which cannot be so affecting the legality of such debt, obligation, or lien. included must be made in or transferred to a SEC. 32. Any person who willfully violates any provision of this title, or any rule or regulation thereunder new account. the violation of which is made unlawful or the observ- 3. After an account has been designated as ance of which is required under the terms of this title, or any person who willfully and knowingly makes, or an old account the regulation permits the withcauses to be made, any statement in any application, drawal of cash or securities only if the account report, or document required to be filed under this title or any rule or regulation thereunder, which state- is an unrestricted account on October 15 and ment wras false or misleading with respect to any material fact, shall upon conviction be fined not more than if the withdrawal does not make the account a $10,000, or imprisoned not more than two years, or restricted account. both, except that when such person is an exchange, a fine not exceeding $500,000 may be imposed; but no 4. If, between the opening of business on person shall be subject to imprisonment under this October 1, 1934, and the time of the designasection for the violation of any rule or regulation if he proves that he had no knowiedge of such rule or regu- tion of such account as an old account, there lation. has been any withdrawal of money or securities from the account, such account cannot be Orders executed on September 29, 1934, as part of designated as an old account unless it is an "old accounts" •unrestricted account on October 15 or on the Ruling no. 1 interpreting Regulation T.—Or- date of such designation, whichever is the later, ders executed Saturday, September 29, even or unless the cash and/or securities withdrawn though not actually debited or credited to acfrom the account are replaced before the counts until after October 1, may be considered account is designated as an old account. as part of accounts maintained at the opening 5. If, between the opening of business on of business on October 1, 1934, so as to secure October 1, 1934, and the time of the designabenefits of provisions of section 7 (a) of Federal tion of such account as an old account, there Reserve Board's Regulation T. has been any additional purchase of securities in the account or any substitution consisting of Margin requirements—old accounts a sale and replacement purchase which results Ruling no. 2 interpreting Regulation T.—In in an increase in the adjusted debit balance of response to a number of questions which have the account, the securities purchased and any Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

687 OCTOBER 1934 FEDERAL RESERVE BULLETIN debit for the cost thereof cannot be included Nature of margin referred to in section 4 (e) of in the account designated as an old account but Regulation T may be transferred to a new account. Ruling no. 4 interpreting Regulation T.—In 6. Even though transactions have been made response to an inquiry as to applicability of in an account subsequent to September 30, section 4 (e) of Board's Regulation T in light 1934, the creditor may for convenience desig- of word "additional" preceding word "margin" nate the account exactly as it existed at the in first sentence, Board has replied that the beginning of business on October 1, 1934, as subsection refers to all margin which must be dean old account and may transfer all transac- manded in order to comply with Regulation T. tions made subsequent to September 30, 1934, to a new account, to which also may be trans- Margin requirements—Transactions in unrestricted ferred any money and/or securities lawfully accounts withdrawn from the old account in accordance Ruling no. 5 interpreting Regulation T.—In with section 7 (a) of the regulation. reply to an inquiry as to the effect under sections 4 (c) and 4 (e) of Regulation T of a credi- Voluntary cancelation by nonmember banks of agree- tor allowing a customer to effect a transaction ments under section 8 (a) of Securities Exchange Act in an unrestricted account which would make Ruling no. 3 interpreting Regulation T.—Re- the account a restricted account and then failing plying to inquiry as to whether and under what to obtain, within three full business days as conditions nonmember bank which has exe- specified in section 4 (e) of the regulation, the cuted agreement on F.R.B. Form T-l or T-2 margin required for the transaction, the Board under section 8 (a) of Securities Exchange Act has advised that such failure to obtain margin may cancel such agreement, Board has taken will not merely cause the account to become a position that, inasmuch as statute makes no restricted account but will constitute a violareference to termination or cancelation except tion of the regulation, unless within said 3in case of bank's failure to comply with pro- day period the account is otherwise brought visions of agreement, there is doubt as to into conformity with the regulation or within Board's power to permit voluntary cancelation said 3-day period an extension of time is by a bank in other cases and that, since ques- obtained as provided in the first proviso of tion depends upon interpretation of criminal section 4 (e). Such an account may be brought statute rather than interpretation of Board's into conformity with the regulation by such regulation, Board could not safely sanction increase in the maximum loan value of the such cancelation without opinion from Attorney securities in the account and/or such decrease General holding that such action would be in the adjusted debit balance of the account lawful and would relieve bank from further as would result in the account being an uncompliance with agreement. Since it is prac- restricted account after eliminating from the tice of Attorney General to decline to express computation of the adjusted debit balance any opinions except on basis of specific facts in temporary credit given pursuant to clause 8 of actual cases requiring some action by Govern- section 3 (j) for margin required on the transment, it is not believed to be possible to obtain action and demanded but which has not been opinion from Attorney General on hypothetical obtained. The inquiry as submitted pointed question. In order to clear up this question, out that in the case of a sale made on the third Board will consider recommending to Congress business day for the purpose of bringing the at next session that statute be amended so as account into conformity with the regulation expressly to authorize voluntary cancelation the proceeds would not ordinarily be obtained of such agreement by a bank which has closed until after the 3-day limit had expired. It out all loans made under section 8 (a) while should be noted, however, that under clause 7 agreement was in force. of section 3 (/) of the regulation the adjusted Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

688 FEDERAL RESERVE BULLETIN OCTOBER 1934 debit balance of the account reflects the sale in conformity with sections 3 (6), 3 (c), 3 (d), as soon as it is made even though proceeds of 5 (6), and 6 need not be included in such old the sale are not yet credited to the account. account. The adjusted debit balance of such old account and the maximum loan value of the securities therein must be calculated in ac- Margin requirements—New purchases in restricted cordance with section 3 (j) of the regulation accounts as if it were a combined account, except that Ruling no. 6 interpreting Regulation T.—In the old account shall not affect or be affected reply to an inquiry Board has ruled that under by the status of any other special account or of section 4 (d) of Regulation T new purchases any new account established for such customer. may be made in restricted accounts if additional margin in the amount required by section 3 to Effect of section 8 (a) of Securities Exchange Act on cover such new purchases is demanded on existing loans same day and is obtained within time allowed Ruling no. 9 interpreting Regulation T.—In "by section 4 (e), even though the account is response to question whether section 8 (a) of not made an unrestricted account. Securities Exchange Act of 1934 and section 10 (a) of Regulation T require brokers, dealers, Accounts transferred from banks not to be designated and members of national securities exchanges to as "old accounts" pay off before October 15, any money borrowed Ruling no. 7 interpreting Regulation T.— prior to October 1, 1934, from persons other Board has been asked whether a loan carried than member banks, nonmember banks which with a bank prior to October 1, 1934, may be have filed agreements pursuant to section 11 of transferred after that date to a broker and regulation, and other brokers, dealers, and memdesignated as an "old account" under section bers of national securities exchanges, Board ex- 7 (a) of Regulation T. Assuming that bank in pressed the view that the restrictions of section question is not a member of a national securities 10 (a) of the regulation and section 8 (a) of the exchange, Board has advised in reply that act apply only to borrowing on registered nonsuggested designation may not be made as exempted securities on or after October 1, 1934, section 8 (e) of Regulation T with respect to when this section of the act became effective, "Transfer of accounts" refers only to transfers and do not require the paying off of money from one "creditor" to another "creditor" borrowed before that date or prohibit the reand term "creditor" as defined in section 2 (6) newal or extension of a loan obtained before of Regulation T does not include a bank which that date; provided that such renewal or extenis not a member of a national securities sion involves no increase in the amount of the exchange. loan. In view of fact that violation of section 8 (a) of the act is a criminal offense, however, Board's opinion upon this subject would not Designation of "old accounts" preclude prosecution if Department of Justice Ruling no. 8 interpreting Regulation T.—In should interpret the law differently; and, in answer to inquiries as to the nature of an accase of any doubt, member, broker, or dealer count which may be designated as an "old should obtain advice of his own counsel. account" pursuant to section 7 (a) of the Board's Regulation T, Board has advised that the account to be designated as an "old ac- Scope of agreement of nonmember banks under section count" shall include all financial relationships 8 (a) of Securities Exchange Act of 1934 existing between a creditor and a customer at Ruling no. 10 interpreting Regulation T.— the opening of business on October 1, 1934, Several inquiries have been received as to except that those relationships which may be which provisions of the Securities Exchange recorded separately in other special accounts Act of 1934, the Federal Reserve Act, as Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 1934 FEDERAL RESERVE BULLETIN 689 amended, and the Banking Act of 1933 are October 2, 1934, the Federal Reserve Board applicable to member banks and relate to the said: "If, between the opening of business on use of credit to finance transactions in securi- October 1, 1934, and the time of the designation ties within the meaning of section 8 (a) of the of such account as an old account, there has Securities Exchange Act of 1934 and of the been any withdrawal of money or securities Board's Forms T-l and T-2 prescribed pur- from the account, such account cannot be dessuant thereto. Since question requires inter- ignated as an old account unless it is an unrepretation of criminal statute rather than stricted account on October 15 or on the date interpretation of Board's regulation, expres- of such designation, whichever is the later, or sion of opinion by Board would not afford unless the cash and/or securities withdrawn protection from criminal prosecution if the from the account are replaced before the ac- Department of Justice, upon consideration of count is designated as an old account/' This the matter should take position inconsistent ruling has given rise to two additional inquiries: with that taken by Board and should feel com- (1) Does it prevent the withdrawal of any pelled to prosecute for violation of the section. securities or only of securities which as of Accordingly, Board does not feel that it would October 15 wTill have the status of registered be appropriate for it to express an opinion upon and/or exempted securities? and (2) what is the question other than to advise nonmember meant by the replacement of cash or securities banks contemplating the execution of Form withdrawn from the account? In answer to T-l or T-2 to familiarize themselves with the first question, the Board has ruled that the statutes in question and to consider possibility restriction applies to the withdrawal of unthat it may be held that above-mentioned registered, nonexempted securities as well aslanguage of section 8 (a) refers to the following to the withdrawal of registered and/or exempted provisions, among others: Section 11 (m) of securities. In answer to the second question, Federal Reserve Act as amended by section 7 the Board has ruled that, where cash has been of Banking Act of 1933, seventh paragraph of withdrawn, it must be replaced by an equivalent section 19 of Federal Reserve Act as amended amount of cash and, where securities have been by section 11 of Banking Act of 1933, fourth withdrawn, they must be replaced by money paragraph after paragraph "eighth" of section and/or securities to such an extent that the 4 of Federal Reserve Act as amended by money plus the market value of the securities section 3 of Banking Act of 1933, and those deposited is not less than the aggregate market provisions of Securities Exchange Act of 1934 value of the securities which were withdrawn which are contained in appendix to Regulation and the money plus the maximum loan value T. In reply to another inquiry, Board advises of the securities deposited is not less than the that foregoing should be brought to attention aggregate maximum loan value of the securities of nonmember banks contemplating execution which were withdrawn from the account. For of agreements but that circularization of such the purpose of determining the amount of cash information to all nonmember banks is believed and/or securities needed to replace securities to be unnecessary. withdrawn, the current market value and maximum loan value of the securities withdrawn and of the securities replaced must be ascertained Withdrawals prior to designation of old accounts in accordance with section 3 of regulation T as of the opening of business on October 15 or Ruling no. 11 interpreting Regulation T.—In the date of replacement, whichever is later. interpreting section 7 (a) of Regulation T on Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

690 FEDERAL RESERVE BULLETIN OCTOBER 1934 Margin requirements—Fluctuations in market prices Time within which combination of transactions must be made in old accounts Ruling no. 12 interpreting Regulation T.— Ruling no. 15 interpreting Regulation T.— The Board has been asked whether Regulation In reply to an inquiry, Board has advised that T requires that additional margin be obtained in order to be considered a " combination of if in a restricted combined account containing transactions" within the meaning of the second securities and commodity commitments there proviso of section 7 (a) of Regulation T, the are no new transactions but there are adverse transactions constituting such combination fluctuations of the commodity market. In must be made on the same day except that any reply the Board advised that Regulation T substitution of securities consisting of a sale of does not require the creditor to obtain addisecurities in the account and the purchase of tional margin in the circumstances indicated other securities may be considered as a single and that under section 4 (b) of Regulation T transaction occurring on the day on which the the creditor may permit credit to be mainpurchase occurs, if completed within a period tained in such an account regardless of mere of two successive business days, regardless of fluctuations in the commodity market and whether the sale occurs before or after the regardless of mere bookkeeping entries used to purchase. indicate such fluctuations. Margin requirements—Transactions in cash accounts Margin requirements—Short sales andJother^ trans- Ruling no. 16 interpreting Regulation T.—In actions in restricted accounts response to an inquiry as to whether in a cash Ruling no. 13 interpreting Regulation T.— account under section 6 of Regulation T In reply to an inquiry, the Board has ruled that credit may be extended on unregistered nonunder section 4 (d) of Regulation T short sales exempt securities as an incident to the purmay be made in a restricted account if the chase of such securities, the Board advised that margin customarily required by the creditor section 6 of Regulation T does not authorize on such short commitments is demanded on such extensions of credit and also pointed out the same day and is obtained within the time that section 7 (c) (2) of the Securities Exchange allowed by section 4 (e). The same principle Act of 1934 expressly prohibits a creditor as applies to the execution in restricted accounts defined in section 2 (b) of Regulation T from of transactions of the kinds referred to in extending or maintaining credit on such secuclause 4 of section 3 (/)• rities under the circumstances indicated. Withdrawals of cash from old accounts prior to October Confirmation of demand for margin 15 1934 Ruling no. 17 interpreting Regulation T.—In Ruling no. 14 interpreting Regulation T.— response to an inquiry, the Federal Reserve In reply to an inquiry, the Board has advised Board has ruled that, where a demand for that, in the case of an account which has been margin has not been made by a letter or teledesignated as an old account pursuant to sec- gram sent to a customer at his last known adtion 7 (a) of Regulation T, a withdrawal of dress but has been delivered to the customer cash which is made prior to October 15 and in person, the amount so demanded cannot be which thereby increases the adjusted debit included in the computation of the adjusted balance of the account is nevertheless permitted debit balance of the customer's account purif the account is not thereby made a restricted suant to the provisions of clause 8 of section account and if, on October 15, the account is 3 (f) of Regulation T, unless such demand for an unrestricted account. margin has been confirmed by a letter or tele- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 1934 FEDERAL RESERVE BULLETIN 691 gram which the creditor shall have sent to the time when the 7-day period allowed under customer at his last known address. section 6 of Regulation T begins to run in connection with bona fide cash transactions, the Federal Reserve Board ruled that: Increases in adjusted debit balance of an old account In the case of a bona fide cash transaction in Ruling no. 18 interpreting Regulation T.— which a broker purchases a security as agent for In response to an inquiry the Federal Reserve a customer and makes payment to the seller of Board has advised that, if the adjusted debit the security, the 7-day period commences to balance of an account which has been desig- run when the broker pays for the security withnated as an "old account" pursuant to section out having received payment from his customer. 7 (a) of Regulation T, is reduced by reason of In the case of a bona fide cash transaction in a sale of securities or otherwise, the creditor which a dealer acting as principal or as agent may not thereafter permit the customer to for the seller sells a security to a customer, the make any transaction which would result in an 7-day period commences to run when title to increase in the adjusted debit balance except a the security passes to the customer without the withdrawal of money made in conformity with customer having paid for the security. the third proviso of section 7 (a) of Regulation In both cases and in all other cases involving T. In this connection the Board called atten- cash transactions, the 7-day period commences tion to the fact that a transaction which would to run when the relation of debtor and creditor result in an increase in the adjusted debit bal- arises between the purchaser and the creditor ance if standing alone is not prohibited by sec- as a result of the cash transaction. tion 7 (a) if it is part of a "combination of In this connection, the Board explained that transactions" which results in no increase in the sole purpose of section 6 is to allow the the adjusted debit balance. extension of credit for limited periods of time in connection with bona fide cash transactions and that this section does not place any restrictions Margin requirements—Time allowed for obtaining upon a bona fide cash transaction which does margin not result in any debtor and creditor relation- Ruling no. 19 interpreting Regulation T.— ship between the customer and the broker or The Federal Reserve Board has been asked dealer. whether under section 4 (e) of Regulation T, in the case of a purchase of securities on a Mon- Guaranteed accounts day, the three-day period allowed for obtaining Ruling no. 21 interpreting Regulation T.—In margin expires at midnight Wednesday or at response to an inquiry with respect to guaranmidnight Thursday, if the days specified and teed accounts, the Board advises that under all the intervening days are full business days. section 8 (d) of Regulation T, a creditor may In reply the Board advised that the three-day regard as an unrestricted account any account period specified means three full business days which is guaranteed in writing for an amount following the date of the transaction and that, sufficient to make such account an unrestricted in the case indicated, the three-day period alaccount by a person who has an account with lowed by section 4 (e) would not expire until such creditor containing a cash credit balance midnight on Thursday. and/or securities of sufficient loan value to make such guaranteed account an unrestricted Cash transactions account in addition to providing the margin Ruling no. 20 interpreting Regulation T.—In required by Regulation T on the guarantor's response to two inquiries with respect to the account. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

692 FEDERAL RESERVE BULLETIN OCTOBER 1934 Margin requirements—Joint accounts between mem- regulation and section 30 (b) of the act, the bers of national securities exchanges Federal Reserve Board has expressed the Ruling no. 22 interpreting Regulation T.— following opinions: The Federal Reserve Board has been asked to When a creditor with a foreign branch office rule on the question whether there is an exten- which is carrying securities in a foreign country sion of credit by a creditor to a customer within for a foreign customer executes within the the meaning of the Board's Regulation T in the United States an order for the purchase of a case presented by the following facts: A firm registered security for such foreign customer, having membership in a national securities ex- such transaction is subject to provisions of change and an individual member of the Regulation T and is not excepted therefrom exchange form a joint account for transactions by section 8 (h) thereof. in securities. The individual provides no cap- A creditor borrowing in the United States on ital but furnishes to the joint account services any registered security in the ordinary course in purchasing and selling the securities. The of business as a broker or dealer must comply firm pays for the securities bought, furnishes with the provisions of Regulation T and of the the securities sold and " clears the account". act with respect to such borrowing, regardless In these circumstances, the Board has ruled of whether or not the security is held for the that such relationship does not constitute a account of a foreign customer. creditor-customer relationship, within the meaning of Regulation T, between the firm and the joint account or the firm and the individual, Market value and loan value of securities involved in and that, therefore, such transactions are not substitutions subject to the provisions of the regulation Ruling no. 25 interpreting Regulation T.— governing extensions of credit to a customer. The Federal Reserve Board has been asked to rule upon the following question: "A cus- Calculation of net debit balance in arbitrage accounts tomer with a restricted account desires to sub- Ruling no. 23 interpreting Regulation T.—In stitute securities. The substituted securities response to an inquiry the Federal Reserve must have a current market value equal to that Board has ruled that, in calculating the net of the securities withdrawn; otherwise, there debit balance of an arbitrage account within would be a net withdrawal, under regulation the meaning of section 3 (d) of Regulation T, 4 (d). The question is whether the substituted both the long commitments and the short com- securities must also have a loan value equal mitments in securities should be taken into to that of the securities withdrawn." The consideration. Board replied that, under section 4 (d) of Regulation T, neither the current market value nor Transactions within the United States for customers the maximum loan value of the securities subof foreign branches stituted in a restricted account should be less Ruling no. 24 interpreting Regulation T.—In than the current market value or the maximum response to inquiries as to whether particular loan value, respectively, of the securities withtransactions come within the provisions of drawn, unless any difference between such Regulation T and the Securities Exchange values is made up by a deposit of cash or unless Act of 1934 in view of section 8 (h) of the the account is made an unrestricted account. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 1934 FEDERAL RESERVE BULLETIN 693 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 Sep b t e e r m- August Sep b t e e r m- Sept. 5 Sept. 12 Sept. 19 Sept. 26 Boston. 1,354 838 748 1,282 Boston 1.0 0.3 5.3 New York. 14,039 14,390 13, 632 11,856 New York.... 13.1 12.0 42.6 Philadelphia. 5,271 5, 562 5,288 5, 275 Philadelphia- 5.3 29. 0 Cleveland.. 358 288 317 393 Cleveland.. 11.9 Richmond. 694 665 739 524 Richmond.. 11.0 Atlanta 174 187 176 214 Atlanta 7.0 Chicago 773 450 150 150 Chicago 7.3 St. Louis 158 161 160 140 St. Louis 3.1 Minneapolis.. 304 303 287 87 Minneapolis.. 3.6 Kansas City... 141 152 149 130 Kansas City.._ 4.2 Dallas 189 164 134 90 Dallas 4.1 San Francisco.. 182 180 185 173 San Francisco. 8.5 Total . 23,637 23,340 21,9f>5 20.314 Total.. 21.9 20.6 137.6 Back figures.—See Annual Report for 1933 (table 15). Back figures.—See Annual Report for 1933 (table 11). 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 Total reserves Total deposits Federa c l ir R c e u s l e a r ti v o e n n 1 otes in d R e e p s o e s r i v t e s a n n o d t e F l e ia d b e i r l a i- l ties combined 1934 1933 1934 1933 1934 1933 1934 1933 Sept. Aug. Sept. Sept. Aug. Sept. Sept. Aug. Sept. Sept. Aug. Sept. Boston 374, 781 399, 786 288, 960 258,917 294, 599 167,931 256, 747 245, 645 223, 742 72.7 74.0 73.8 New York .. 1, 771, 648 1801, 651 1051, 519 1, 808, 036 1,836, 611 1,078, 620 660, 667 654, 731 646, 035 71.8 72.3 61.0 Philadelphia 295,164 303, 344 243, 658 203, 219 208, 948 145,166 244,933 247, 914 239, 312 65.9 66.4 63.4 Cleveland 391, 397 393,589 291, 044 271, 481 274, 066 158,153 313, 883 313, 621 298, 289 66. 9 67.0 63.8 Richmond.. 195, 596 174, 092 154, 311 139,725 130, 582 86, 412 156,337 144, 032 138,665 66.1 63.4 68.6 Atlanta - - 120, 840 123, 897 121, 850 78, 494 79, 472 62, 601 130, 271 132, 471 117.9S2 57.9 58. 5 67.5 Chicago 1,114,405 1,097,146 943, 926 743, 574 727, 428 519, 334 774,612 771,108 750, 289 73.4 73.2 74.3 St. Louis 189,677 183, 387 150,678 141,986 136,979 89, 429 135,463 133,648 134. 582 68.4 67.8 67.3 Minneapolis 147, 005 136,021 94, 718 102, 503 95, 100 56,398 105,960 101, 658 93,531 70.5 69.1 63.2 Kansas City 181, 009 179, 931 149,289 158, 054 158, 516 110,548 114, 262 112,452 109,265 66.5 66. 4 67.9 Dallas 107, 917 95, 472 59, 598 123, 035 116,989 62,411 49,105 42.903 31,689 62.7 59.7 63.3 San Francisco . ... 315, 067 308,108 263, 462 252, 970 249, 548 175,959 213, 422 209, 439 2.17,485 67.6 67.1 67.0 Total 5, 204, 506 5 196, 424 3,813, 013 4, 281, 994 4,308, 838 2 712,962 3,155, 662 3,109, 622 3, 000, 866 70.0 70.0 66.7 i Includes Federal Reserve notes of other Reserve banks as follows: Latest month, $20,275,000; month ago, $17,306,000; year ago, $18,540,000* Back figures.—See Annual Report for 1932 (table 8). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

694 FEDERAL RESERVE BULLETIN OCTOBER 1934 EACH FEDERAL RESERVE BANK—ASSETS AND LIABILITIES; ALSO FEDERAL RESERVE NOTE AND FEDERAL RESERVE BANK NOTE STATEMENT, SEPT. 30, 1934 [In thousands of dollars] Total B to o n s- Y N o e r w k P p d h h e i i l l - a a- C la le n v d e- m Ri o c n h d - At t l a a . n- Chicago L S ou t. is n M o e l a i i n p s - - K C s a a it n s y - Dallas F c S i r s a a c n n o - Gold certificates on hand and due from U.S. Treasury 4,958,653 340,836 1 783, 644 253, 763 362,152 193, 209 103,9481,043,413 178,800 129, 738 165,95! 103,062 300,136 Redemption fund—F.R. notes 21,798 1,138 1,504 2,887 2,674 1,717 3,650 1,173 811 1,007 789 4"2"9 4,019 Other cash 215, 949 21, 231 52,160 35, 640 11, 471 7,828 10,874 31,816 8,891 11,188 7,769 6,309 10, 772 Total reserves 5,196.400 363, 205 1,837,308 292, 290 376, 297 202, 754 118,472 1,076,402 188,502 141,933 174,510 109,800 314,927 Redemption fund—F.R. bank notes 2,186 250 1.936 Bills discounted: Secured by U.S. Govt. obligations 4,963 1,325 2,098 1,030 115 102 35 75 131 10 25 Other bills discounted 10, 386 15 5,009 4r- 266 425 170 42 118 129 Total bills discounted 15,349 1,340 7,107 5,116 381 527 205 75 173 85 128 58 154 Bills bought in open market 5.812 417 2,172 603 546 216 199 730 122 85 159 159 404 Industrial advances 2,178 3 138 136 445 335 105 236 442 165 78 U.S. Government securities: Bonds 396, 558 23, 214 140,957 25,139 30, 556 14, 855 13, 541 62,145 13,796 15, 348 14, 332 18,818 23, 857 Treasury notes 1,421,730 93, 588 451,029 99,347 12"61,,999 61, 740 56,174 252,010 55, 267 35,121 54,645 36,648 99,162 Certificates and bills 612,898 40, 876 185, 769 42, 634 55, 469 26,968 24. 553 114,188 24,137 15,116 23,867 16,009 43, 312 Total U.S. Government securities..2, 431,186157, 678 777, 755 167,120 213,024 103, 56394, 268 428,343 93, 20065, 58592,844 71,475 166, 331 Other securities 327 32? Total bills and securities 2, 454,852159,438 787,172 173, 302 214,046 104, 75195,007 429, 253 93, 731 1,197 93,296 71, 770 166, Due from foreign banks 1,819 137 198 175 64 241 10 51 51 129 F.R. notes of other banks 20, 364 400 6,150 1,024 705 1,409 974 4,008 1,401 867 1,039 363 2,024 Uncollected items _. 437,809 43, 604 108,077 33, 58939, 970 37, 950 14, 215 62,071 22,350 13,136 25,900 15,401 21, 546 Bank premises 52,821 3, 224 11,468 4,333 6,788 3,128 2,372 7,387 3,126 1,664 3, 485 1,757 4,089 All other assets 54,084 584 38,914 4.994 1,444 1,640 2,045 1,311 210 991 443 580 Total assets.. 8. 220. 335570, 842 2, 791. 712 509, 730 639. 425 351, 701 233,149 1, 580, 673 309, 330 224, 795 298, 724 200, 070 510,184 LIABILITIES F.R. notes in actual circulation.. 3,167,066 263,604 665,611 242, 794 307, 209 161,031 131, 756773,428 137,166 106, 365 114, 851 51,530 211,721 F.R. bank note circulation—net. 30,379 1,062 29. 317 Member bank—reserve account 3,934,071 236,135 1,, 650,362 192, 475 253,554 128,18969,890 691,834 122,392 87,366 147r,,820117,789 236,265 U.S. Treasurer—general account 144,699 2,620 97,438 2,722 4,184 11,736 1,729 12,125 4,628 1,311 927 2,143 3,136 Foreign bank 9,810 835 2,221 1,207 1,114 441 406 1,462 383 267 325 325 824 Other deposits... 168,168 1,207 111,392 4,553 3,847 1,522 3,238 3,310 12,223 7,417 3,121 1,9 14,389 Total deposits 4, 256, 748240,797 1,861,413 200,957 262,699 141, 75, 263 708, 731139,626 96,361 152,193122, 206 254,614 Deferred availability items. 430, 783 43,199 106,345 33,770 39,463 37,357 13, 722 58,374 22,490 14, 21623, 220 17,217 21,410 Capital paid in 146, 781 10,761 59,610 15,248 13,000 4,993 4,370 12,723 4,055 3,118 4,123 4, 10, 772 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 Reserve for contingencies 22, 444 1,053 4,737 2,500 2,300 1,155 2,485 2,967 850 1,026 619 1,133 1,619 All other liabilities 27, 751 "56 19,462 1,109 664 106 408 3,769 387 105 293 403 Total liabilities.. 8,220,335 570,842 2, 791, 712 509,730 639,425 351, 701 233,149 1,580,673 309, 330 224, 795 298, 724 200, 070510,184 Ratio of total reserves to deposit and F.R. note liabilities combined (percent) 70.0 72.0 72.7 65.! 66.0 57.2 72.6 68.1 70.0 65.3 63.2 67.5 Commitments to make industrial advances—. 15 105 37 105 212 232 FEDERAL RESERVE NOTE STATEMENT Federal Reserve notes: Issued to F.R. bank by F.R. agent...3,430,049 288,450 751,137 258, 296 322,842 169,951150,917 802,389 142, 696 110, 239 120, 262 56,720 256,150 Held by F.R. bank 262, 983 24,846 85,526 15,502 15,633 8,920 19,161 28, 961 5,530 3,874 5,411 5,190 44,429 In actual circulation 3,167,066 263,604 665,611242, 794 307,209 161,031131, 756 773,428 137,166 106,365 114,851 51,530 211,721 Collateral held by agent as security for notes issued to bank: Gold certificates on hand and due ffrro m UU..SS.. TTrreasury 3,173,416273,617 763, 706 208,000 273,431145,340 81,385 819,513 128,936 105,000 111, 550 57,175 205, 763 EElliigiibblle paper 9,299 1,340 5,327 '1 ,4'4"-5 214 178 75 168 16 61 84 U.S.. GGovernment securities 15,000 50,000 50,000 25, 000 72,000 15,000 5,800 12,000 54,000 Total collateral 3,481,515 289,957 769,033 259,445 323, 764 170, 554 153, 563 819, 588 144,104 110, 816 123, 611 57, 233 259,847 FEDERAL RESERVE BANK NOTE STATEMENT Federal Reserve bank notes: Issued to F.R. bank (outstanding) 41, 699 1,511 29,980 10, 208 Held by F.R. bank 11,320 449 663 10, 208 In circulation—net 30,379 1,062 29,317 Collateral pledged against outstanding notes: Discounted and purchased bills U.S. Government securities 47,474 5,000 30,474 12,000 Total collateral- 47,474 5,000 30,474 12,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 1934 FEDERAL RESERVE BULLETIN 695 LICENSED MEMBER BANKS IN EACH DISTRICT RESERVES HELD, EXCESSRESERVES, AND BORROWINGS AT FEDERAL RESERVE BANKS [In millions of dollars. Averages of daily figures] Reserves held Borrowing at Federal Reserve banks Federal Reserve district Total Excess August July June August July June August July June Boston 289.3 315.2 296.0 164.6 190.4 174.8 0.3 0.4 0.9 New York 1,687.1 1, 565.8 1,550.3 705.9 589.6 583.3 11 7 12 1 13.3 Philadelphia 197.6 217.8 206.4 79.3 98.6 88.5 1.7 2.6 3.3 Cleveland— _ 261.7 253.5 237.8 124.4 118.3 105.2 .5 .3 1.0 Richmond 125.8 123.6 135.8 60.3 60.0 73.4 .5 .6 .6 Atlanta .. . 73.0 77.4 72.1 25.3 29.9 25.0 .2 .2 .5 Chicago. . . _ 711.7 701.7 637.3 414.0 411.1 354.8 .3 .2 .5 St. Louis. 117.9 108.5 109.6 59.1 50.3 52.1 .2 .2 .2 Minneapolis 85.4 73.9 68.2 41.7 32.1 27.1 .3 .4 .6 Kansas City 152.5 144.8 133.9 77.4 71.4 62.1 .1 .2 .3 Dallas 113.3 113.2 112.8 62.7 63.2 63.0 .3 .4 .5 San Francisco 229.7 232.5 229.7 68.9 74.6 75.3 .1 .7 .4 Total 4,045.0 3,928.0 3, 790. 0 1,883. 6 1, 789. 4 1,684. 6 16.3 18.1 22.1 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 August July June August July June August July June August July June Boston 1,091 1,095 1,062 616 614 614 89 87 82 123 122 120 New York _. 7,240 7,199 7,136 1,708 1,719 1,710 206 199 193 436 433 429 Philadelphia 843 856 851 633 628 616 148 146 141 376 373 369 Cleveland 997 981 962 905 901 891 142 139 133 218 217 210 Richmond - . 489 472 458 314 314 316 100 99 99 155 153 151 Atlanta 367 363 358 265 264 261 73 75 78 62 63 63 Chicago - - 2,206 2,151 2,092 878 872 857 162 155 153 155 153 151 St. Louis __._ 432 429 422 248 248 246 112 109 108 86 85 85 Minneapolis 268 254 247 167 168 166 123 116 116 169 169 169 Kansas City . _ _ 522 509 498 210 202 205 218 215 206 110 110 109 Dallas 365 358 360 162 163 159 162 163 160 35 35 34 San Francisco 1,039 1,012 980 1,705 1,704 1,693 97 93 92 84 84 83 Total 15,859 15, 679 15, 426 7,810 7,799 7,736 1,631 1,597 1,561 2,009 1,998 1,975 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

696 FEDERAL RESERVE BULLETIN OCTOBER 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 Bps- Y N o e r w k P p d h h e i l i 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 n M o e l a i i n s p - - K C s a a it n s y - Dallas F c S r is a a c n n o - Y N o e r w k c C a h g i- o Total loans and investments: Sept. 5 17, 755 1,189 8,090 1,062 1,193 344 331 1,818 510 358 565 418 1,877 7,186 1,434 Sept. 12 17, 778 1,203 8,051 1,059 1,194 346 330 1,861 507 359 569 420 1,879 7,150 1,476 Sept. 19 17, 756 1,205 7,970 1,070 1,184 346 331 1,891 508 365 574 423 1,889 7,065 1,499 Sept. 26 17, 789 1,209 7,990 1,067 1,182 348 332 516 368 577 430 1,884 7,077 1,495 Loans: Sept. 5 672 3,613 493 405 160 166 705 210 166 215 187 897 3,117 549 Sept. 12 7, 855 658 3,586 489 405 161 167 708 210 167 215 189 900 3,093 552 Sept. 19 7,799 658 3,521 492 403 161 168 710 211 167 214 190 904 3,027 555 Sept. 26 7,793 657 3,513 487 403 162 168 713 214 168 215 192 901 3,022 558 On securities: Sept. 5 3,210 238 1,718 222 188 57 56 291 37 59 50 222 1,505 238 Sept. 12 3,162 222 1,693 219 187 57 56 293 71 37 58 50 219 1,479 240 Sept. 19 3,095 220 1, 635 220 186 57 55 289 72 37 58 50 216 1,419 237 Sept. 26 3,080 219 1,631 212 187 57 55 286 71 37 57 50 218 1,416 235 All other: Sept. 5 4,679 434 1,895 271 217 103 110 414 138 129 156 137 675 1,612 311 Sept. 12 4,693 436 1,893 270 218 104 111 415 139 130 157 139 681 1,614 312 Sept. 19 4,704 438 1,886 272 217 104 113 421 139 130 156 140 688 1,608 318 Sept. 26 4,713 438 1,882 275 216 105 113 427 143 131 158 142 683 1,606 323 Investments: Sept. 5 517 4,477 -569 184 1,113 300 192 350 231 4,069 885 Sept. 12 9, 923 545 4,465 570 789 185 163 1,153 297 192 354 231 979 4,057 924 Sept. 19 9, 957 547 4,449 578 781 185 163 1,181 297 198 360 233 985 4,038 944 Sept. 26 9,996 552 4,477 580 779 186 164 1,173 302 200 362 238 983 4,055 937 United States Government securities: Sept. 5 6,520 345 3,005 287 580 123 106 751 186 135 229 170 603 2,827 584 Sept. 12 6, 573 371 2,994 287 578 125 105 790 183 136 232 172 6Q0 2,816 622 Sept. 19.._ 6, 631 375 3,007 295 571 124 105 819 180 142 236 174 603 2,826 644 Sept. 26 6,631 379 2, 998 295 570 125 104 818 185 140 237 179 601 2,813 642 All other: Sept. 5 3,346 172 1,472 282 208 362 114 57 121 61 377 1,242 301 Sept. 12 3,350 174 1,471 283 211 363 114 56 122 59 379 1,241 302 Sept. 19 3, 326 172 1,442 283 210 362 117 56 124 59 382 1,212 300 Sept. 26 3,365 173 1,479 285 209 355 117 60 125 59 382 1,242 295 Heserve with Federal Reserve bank: Sept. 5__ 2,924 218 1,389 119 139 54 553 53 87 138 1,332 514 Sept.12 2,939 203 1,393 120 139 56 538 58 91 144 1,331 498 Sept. 19 2,891 193 1,403 121 141 59 508 53 85 144 1,348 470 Sept. 26 2,989 182 1,496 123 140 56 528 52 83 142 1,448 492 Cash in vault: Sept. 5 236 50 49 12 18 12 44 4 10 15 36 Sept. 12 254 58 52 13 19 12 45 4 11 16 40 36 Sept. 19 253 67 48 13 18 11 44 4 10 15 37 36 Sept. 26 263 69 51 13 19 12 45 4 11 16 40 Net demand deposits: Sept. 5 12, 948 881 6,697 669 651 226 184 1,667 339 243 431 280 6,284 1,431 Sept. 12 13, 041 893 6,662 670 657 231 185 1,692 349 249 456 302 695 6,241 1,451 Sept. 19 12, 943 885 6,585 683 645 228 170 1, 698 344 250 459 297 699 6,168 1,458 Sept. 26 13,112 880 6,711 686 648 229 182 1,720 352 251 462 702 6,291 1,479 Time deposits: Sept. 5 4,500 338 1,091 319 467 134 128 503 166 123 166 123 942 661 373 Sept. 12 4,496 339 1,088 318 468 134 128 502 166 123 166 122 942 659 374 Sept. 19 4, 478 339 1,087 316 487 134 127 489 166 123 166 121 943 659 361 Sept. 26 r 4, 478 340 315 467 134 128 4S8 166 123 r 165 122 942 360 Government deposits: Sept. 5 1,089 90 628 61 40 22 52 30 10 20 59 69 32 Sept. 12 1, 091 90 628 61 41 23 52 30 10 20 60 69 597 32 Sept. 19 1, 091 90 629 61 40 23 52 30 10 20 60 69 599 32 Sept. 26 1,092 90 629 61 41 23 52 30 10 20 59 70 599 32 Due from banks: Sept. 5 1,497 109 120 119 97 75 218 100 81 193 134 166 59 153 Sept. 12 1,514 111 125 126 97 73 220 100 83 193 131 171 60 150 Sept. 19 1,514 105 123 121 104 71 224 100 80 195 137 174 59 157 Sept. 26 1,505 106 123 128 105 71 216 91 190 135 171 57 152 Due to banks: Sept. 5 ' 3, 780 1,632 224 177 81 524 148 116 '264 131 193 1, 571 426 Sept. 12 3,784 1,637 222 172 75 523 149 118 264 136 199 1,577 423 Sept. 19 3,779 194 1,636 225 172 75 520 148 115 263 138 198 1,575 423 Sept. 26 3, 743 186 1,615 223 169 73 520 148 117 260 141 196 1,556 422 Borrowings from Federal Reserve banks: Sept. 5... Sept. 12 Sept, 19 Sept. 26 r Revised. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 1934 FEDERAL RESERVE BULLETIN 697 OTHER BANKING AND FINANCIAL STATISTICS SHIPMENTS AND RECEIPTS OF AMERICAN BANK DEBITS CURRENCY TO AND FROM EUROPE [Debits to individual accounts. In millions of dollars] BY SELECTED BANKS IN NEW YORK CITY [Paper currency only. In thousands of dollars] 1934 1933 Number 1933 1934 of centers August July August Net Net Month Ship- Re- ship- Ship- Re- ship- New York City 1 12,285 13,842 13,076 me to nts c f e ro ip m ts m (-) e n o ts r me to nts c fr e o ip m ts m (- e )o n r ts Outside New York City 140 13,420 13,910 12, 375 Europe Europe receipts Europe Europe receipts Federal Reserve district: (+) Boston... 11 1,455 1,523 1,435 New York 7 12,814 14,391 13, 543 Philadelphia 10 1,149 1,373 1,105 January 3 5,304 +5,301 5,256 +5, 256 Cleveland 13 1,308 1,441 1,255 February.. 105 5,589 +5,484 3,740 +3, 739 Richmond 7 531 524 457 March 101 13,786 +13,685 2,200 +2,200 Atlanta 15 611 630 583 April 25 8,049 +8,024 2,900 +2,899 Chicago 21 3,405 3,538 3,089 May 12, 523 +12, 522 3,780 +3,770 St. Louis 5 626 680 590 June _ +6,866 3,471 +3,463 Minneapolis.. 9 524 469 527 July _. 11,755 +11,751 3,601 +3,538 Kansas City 15 846 857 740 August 5 6,153 +6,148 5,193 +5,193 Dallas 10 453 432 359 September. 122 4,756 +4,634 San Francisco 18 1,984 1,894 1,768 October 5,905 +5,816 November. 3,397 +3,340 Total 141 25,705 27, 752 25,451 December.. 6,976 +6,934 Total 554 91,058 +90, 504 MATURITY DISTRIBUTION OF BILLS AND SHORT-TERM SECURITIES HELD BY FEDERAL For description and back figures see BULLETIN for January 1933, p. 43. RESERVE BANKS PAPER CURRENCY OF EACH DENOMINATION [In thousands of dollars] IN CIRCULATION [Outside Treasury and Federal Reserve banks. In millions of dollars] With- 91 days Total in^ 16 to 30 31 to 60 61 to 90to Over 1933 1934 days days days days 6mos. 6mos. Denomination Aug. 31 Mar. 31 Apr. 30 May 31June 30 July 31 Aug. 31 Bills discounted: Sept. 5 23,637 21,320 725 676 864 Sept. 12 23,340 17,401 646 651 $ $ $ 1 5 2_._ 3 6 6 3 6 6 3 4 3 7 9 3 3 7 3 0 3 7 9 3 2 4 3 2 3 7 9 3 2 6 3 4 3 7 9 3 1 3 2 9 4 7 0 3 4 3 1 3 Bi o ll p s S S e e e n p p b m t t o . . u a 2 1 g r 6 9 k h e t t: in 2 20 1 , , 3 9 1 6 4 5 1 1 3 5 , , 7 0 6 9 7 0 9 7 9 7 0 0 4 6 9 7 5 1 5 5 , , 2 1 5 8 1 0 $ $ $ $ $ 5 2 5 1 1 0 0 0 0 0 0 . 0 . .. 1 1, , 3 1 3 6 1 0 5 6 2 3 0 3 7 0 1 1 1, , 3 2 3 5 1 0 3 8 4 1 2 0 4 6 7 1 1 , , 2 2 3 5 1 9 2 4 8 1 2 5 2 1 7 1 1 , , 2 2 3 5 1 8 2 7 4 1 8 5 9 1 6 1 1 , , 2 2 3 5 1 9 3 4 7 1 3 1 2 9 7 1 1 , , 2 2 3 5 1 7 1 3 6 1 7 9 6 9 3 1 1 , , 2 2 3 5 1 9 5 6 3 1 4 0 8 5 2 S S S S e e e e p p p p t t t t . . . . 5 2 1 1 6 9 2 5 5 5 5 , , , , 2 8 2 2 0 1 1 0 2 2 9 2 4 4 2 1 0 4 2 4 6 1 2 9 3,7 3 1 1 0 0 4 9 0 3 2 2 4,2 7 3 8 4 6 9 8 5 1 3 3 1 , , ,6 8 6 3 1 9 5 9 1 1 6 2 $ $ $ 1 5 1 0 , , 0 0 ,0 0 0 0 0 0 0 24 10 6 23 9 7 0 23 9 8 0 22 9 7 8 22 6 7 5 22 8 5 3 22 8 5 2 In v d a S S u n e e c s p p e t s t t r . . : i 5 1 a 2 l ad- 1,2 92 8 2 1 1 2 9 1 7 4 9 7 4 5 2 3 TotaL 4,896 4,986 4,954 4,941 4,952 4,896 4,97? S S e e p p t t . . 2 1 6 9 1 1 , , 4 9 9 6 4 1 1 79 3 2 5 2 8 4 1 1, , 4 1 3 3 9 1 Treasury certifi- NOTE.—Figures include, in addition to currency outside the Treasury cates and bills: and Federal Reserve banks, unassorted currency held by these institu- Sept. 5 660,592 23,022 64,515 112,310 69,815 390,930 tions amounting to $5,000,000-$18,000,000, and also $1,000,000 of currency Sept. 12 639,341 48, 522 51,547 78,468 40,875 403,329 16,600 of unknown denominations reported by the Treasury as destroyed. Sept. 19 48,515 43,982 75,568 189,169 240,135 15,000 Sept. 26 612,872 46, 547 32,078 71,115 187,525 236,907 38,700 Municipal war- UNITED STATES POSTAL SAVINGS rants: [Balance to credit of depositors. In millions of dollars] S S e e p pt t . . 5 12 3 3 5 5 6 6 3 3 5 5 6 6 Sept. 19 356 356 End of month 1929 1930 1931 1932 1933 1934 Sept. 26 327 327 January 153.5 165.1 278.4 665.6 942.5 1,200.8 February 154.8 167.9 292.1 691.8 L, 006. 2 1,200. 0 March 155.0 169.5 302.7 705.3 1,112.7 1,200.0 April 154.3 170.2 313.8 722.1 L, 158. 4 1,197.5 May . ... 153.8 171.2 325.0 742.6 L, 178.8 1,196.9 June 153.6 175.3 347.4 784.8 L, 185.1 1,197.9 July 157.8 180.7 372.5 828.5 L, 176. 7» 1,190. 7 August 160.1 186.5 422.7 848.5 L, 177. 7 p 1,192.5 September 160.3 189.8 469.9 857.4 L, 180. 7 p 1,192.7 October 161.6 192.5 538.1 870.8 L, 188.9 November 163.7 200.7 565.6 885.2 L, 198. 7 December 164.3 245.4 605.1 900.8 1,208 8 Preliminary. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

698 FEDERAL RESERVE BULLETIN OCTOBER 1934 BANKS LICENSED AND NOT LICENSED Number of banks Deposits 2 (in thousands of dollars) Total Licensed lice N n o s t ed * Total Licensed lic N en o s t ed All member banks: Mar. 15, 1933 - 5,078 1,621 28,421,038 25,554,287 2,866,751 Apr. 12, 1933 6,681 5,425 1,256 28,646,106 25,986,183 2,659,923 June 30, 1933 6,701 5,606 1,095 27,829,942 26, 563,927 1,266,015 Oct. 25, 1933 6,577 5,818 759 27,330,869 26, 584,001 746,868 Dec. 30, 1933 6,523 6,011 512 27,694,828 27,166,974 527,854 Mar. 5, 1934 6,514 6,206 308 29,615,026 29,324,825 290,201 June 30, 1934 6,488 6,375 113 31,124, 361 31,012,367 111,994 July 25, 1934.. 6,479 6,392 87 31,110,810 31,029,027 81, 783 Aug. 22, 1934 -. _ 6,475 6,407 68 31,099,414 31,027, 259 72,155 Sept. 26, 1934 6,474 6,424 50 31,117, 534 31,056, 620 60,914 National banks: Mar. 15, 1933 5,907 4,507 1,400 18,137, 719 16,195,145 1,942,574 Apr. 12, 1933 - 5,897 4,789 1,108 18,313,090 16,494, 549 1,818,541 June 30, 1933 5,882 4,897 985 17,769,636 16,741,289 1,028,347 Oct. 25, 1933 5,735 5,052 683 17,632, 596 17,022,133 610,463 Dec. 30, 1933 5,606 5,154 452 17,990,217 17, 555,239 434,978 Mar. 5, 1934 5,558 5,288 270 19,048, 533 18,801,352 247,181 June 30, 1934 5,512 5,417 95 19,993,896 19,895,897 97,999 July 25, 1934 _ 5,502 5,429 73 19,979,704 19,906,446 73,258 Aug. 22, 1934 5,501 5,443 58 19,975, 347 19,909,931 65,416 Sept. 26, 1934 5,497 5,455 42 19,977, 512 19,921,981 55, 531 State-bank members: Mar. 15, 1933 792 571 221 10, 283,319 9,359,142 924,177 Apr. 12, 1933. 784 636 148 10,333,016 9,491,634 841,382 June 30, 1933 819 709 110 10,060,306 9,822,638 237,668 Oct. 25, 1933 842 766 76 9,698,273 9, 561,868 136,405 Dec. 30, 1933 917 857 60 9,704,611 9,611,735 92,876 Mar. 5, 1934._ 956 918 38 10, 566,493 10,523,473 43,020 June 30, 1934 976 958 18 11,130,465 11,116,470 13,995 July 25, 1934_ 977 963 14 11,131,106 11,122, 581 8,525 Aug. 22, 1934 974 964 10 11,124,067 11,117, 328 6,739 Sept. 26, 1934 977 11,140,022 11,134, 639 5,383 Nonmember banks other than mutual savings banks:3 Apr. 12, 1933 10,351 7,392 2,959 6,341,370 5,020,061 1,321,309 June 30, 1933—- 10,171 8,188 1,983 6,135,648 5, 071,664 1,063,984 Oct. 25, 1933 9,887 8,345 1,542 5,947,892 5,130,627 817, 265 Dec. 30, 1933 9,590 8,333 1,257 5,559,996 5,062,908 497,088 Mar. 7, 1934 9,337 8,395 942 5,363, 592 4,940,583 423,009 June 27, 1934 9,138 8,629 509 5, 213,694 4,979,460 234,234 July 25, 1934 9,103 421 5, 203,713 4,999,150 204, 56? Aug. 22, 1934 9,077 8,713 364 5,160,535 4,981,074 179,461 Sept. 26, 1934 9,041 8,730 311 5,129, 327 4, 983, 513 145,814 1 Includes a number of national banks whose Federal Reserve bank stock had been canceled and membership terminated but which, on the dates given, were still included in the Comptroller of the Currency's records of unlicensed banks. 2 Deposits of national banks and State-bank members are as of the nearest call dates; deposits of nonmember banks for Apr. 12, June 30, and Oct. 25, 1933, are as of Dec. 31, 1932, or the nearest available call date prior thereto; deposits of nonmember banks for Dec. 30, 1933, and subsequent dates are as of Dec. 30, 1933, or the nearest available call date prior thereto. 3 Nonmember bank figures are not available for some of the dates for which data are shown for member banks. RATES ON INDUSTRIAL ADVANCES [Approved by the Federal Reserve Board, under sec. 13 (b) of Federal Reserve Act as amended June 19,1934. Percent per annum except as otherwise specified. In effect on Oct. 1, 1934] Boston Y N o e r w k d P e h lp il h a i - a C la le n v d e- m Ri o c n h d - la A n t t - a c C a h g i o - L S ou t. is M ap i o n l n is e- K C an it s y as Dallas F S ra a n n cisco Advances direct to industrial or commercial organizations 4-6 4-6 4-6 6 6 6 5-6 6 6 5-6 5-6 Advances to financing institutions: On portion for which institution is obligated - 3 3 0) 4 5 3 5-6 I 4 4 3-4 On remaining portion 4-5 5 3 5-6 4 5-6 4-5 Commitments to make advances 1-2 1-2 1-2 7 1 101-2 71 1-2 11 percent, above prevailing discount rate. a 6 percent for nonbanking financial institutions; 1 percent below rate charged industrial or commercial borrower for banking institutions, but not less than 4 percent. 3 With respect to loans received from financing institutions, Federal Reserve bank allows out of interest received on portion of loans retained by it 1 percent per annum to financing institutions which agree to service loans and report regularly on status of borrower. * 4H percent for member bank; 5 percent for nonmember bank or nonbanking financial institution. 8 Same as to borrower but not less than 4 percent. 61 percent below rate charged borrower by financing institution but not less than 4 percent. 7 Flat rate. 8 Rate to depend upon length of commitment and other circumstances. • Charge for commitments in excess of 6 months. i° 2 percent on direct advances; 1 percent on advances to financing institutions. NOTE.—Changes from previous month: Boston, commitment charge from y2 percent minimum to H~2 percent; Atlanta, commitment charge reduced from 1 percent to H percent; Chicago, commitment charge of 1-2 percent adopted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 1934 FEDERAL RESERVE BULLETIN 699 NUMBER OF BANKS MAINTAINING BRANCHES, AND NUMBER OF BRANCHES MAINTAINED, BY CLASS OF BANK, BY STATES, DEC. 31, 1931, 1932, AND 1933 i Number of banks maintaining branches State Total 1931 Total 677 Alabama 2 Arizona 7 1 California 50 Delaware 6 District of Columbia 12 Georgia - - 13 Indiana 13 Iowa 47 Kentucky 7 Louisiana - 39 19 Maryland - 27 M! assachusetts 48 48 2 TYTississiDDi 8 2 NPW Hamnshire 1 New Jersey - - 59 1 NPW York 70 North Carolina 23 Ohio 33 46 Rhode Island - - 11 South Carolina 11 25 7 Virginia - - 30 3 Wisconsin 6 1932 Total - - -- 680 2 5 1 California -- 45 Georgia -- Indiana Ke^uckv" "" Louisiana - -- - IVTarvland Massachusetts _ - Michigan - Minnesota New Jersev New Mexico New York North Carolina Ohio Pennsylvania — RSohuotdhe CIsalraonldin a -- Virginia Wisconsin ot ot State National member 157 141 1 1 12 4 2 7 4 4 3 2 4 1 1 5 1 1 15 12 2 1 2 1 23 25 1 6 15 2 4 7 7 1 1 157 13 7 4 19 5 49 7 3 43 1 19 25 1 44 15 43 13 2 10 1 2 2 1 1 57 22 1 70 24 22 1 40 6 41 16 11 2 8 2 20 6 7 39 3 \ 14 OC3N 20 21 29 2 11 11 4 1 3 3 133 1 1 3 2 5 2 1 4 1 3 11 17 20 got Non- member 379 1 6 1 34 4 5 5 8 47 2 33 18 23 21 16 7 15 1 16 20 16 20 5 6 18 7 20 10 4 1 3 2 ot ot Number of branches Location of branches Total National m S em tat b e er m N em on b - er In o f h fi e ce ad banks banks banks city 3,334 1,274 1,073 987 2,176 16 1 15 25 11 14 1 1 801 520 103 178 258 12 2 10 2 26 16 10 26 34 22 7 5 18 27 5 13 9 19 67 67 23 12 9 2 21 98 8 36 54 51 73 3 70 7 108 3 27 78 59 116 62 25 29 110 385 242 96 47 385 6 6 6 21 1 20 1 2 2 2 1 1 124 43 53 28 115 3 3 690 207 428 55 690 84 2 8 74 12 213 25 162 26 183 126 47 42 37 122 36 2 28 6 16 77 8 1 68 9 58 22 36 24 10 10 57 12 15 30 29 5 2 3 9 4 3 2 390 3,191 1,220 1,031 940 1 16 1 15 4 15 9 6 1 1 1 29 790 528 92 170 4 12 2 10 5 26 16 10 3 32 21 8 3 12 33 7 13 13 49 71 71 3 23 11 9 3 38 102 8 34 60 18 72 3 69 21 102 2 25 75 18 107 58 24 25 13 345 213 92 40 6 9 23 1 22 2 2 1 1 15 117 38 49 30 1 3 3 16 661 186 420 55 19 78 2 8 68 24 222 27 158 37 39 31 5 36 2 28 6 5 28 4 1 23 14 49 17 32 7 10 10 29 64 11 14 39 2 4 2 2 10 22 9 2 11 CO OO Outside head office city In head Outside office head county c o o f u fi n c t e y 410 748 2 14 8 17 1 86 457 4 6 5 11 7 1 60 7 1 1 42 5 35 31 32 17 6 4 16 1 7 2 3 20 52 26 4 4 13 7 1 67 16 18 8 2 17 11 1 1 1 2,064 432 695 2 14 7 8 1 255 79 456 2 4 6 26 17 4 11 21 11 1 64 7 20 2 1 49 48 5 7 34 31 54 31 17 100 6 1 345 6 1 6 16 2 1 107 8 2 3 661 12 15 51 182 36 4 116 2 16 13 7 3 1 24 19 14 16 8 2 29 22 13 2 1 1 12 10 i Exclusive of mutual savings banks and private banks. No branches were reported in the States omitted in the respective years. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

700 FEDERAL RESERVE BULLETIN OCTOBER 1934 NUMBER OF BANKS MAINTAINING BRANCHES, AND NUMBER OF BRANCHES MAINTAINED, BY CLASS OF BANK, BY STATES, DEC. 31, 1931, 1932, AND 1933—Continued Number of banks maintaining branches Number of branches Location of branches Outside head office city State Total National m S em tat b e er m N em on b - er Total N b a a ti n o k n s al m b S e a t m n a k t b e s er m b N e a m o n n k b - s er In o c f h f i i t c e y a e d In head Outside office head county office county Total 575 146 116 313 2,752 1,121 960 671 1,651 713 Alabama 1 1 1 Arizona 1 13 9 9 Arkansas. 6 2 California 10 5 783 524 147 112 249 460 Connecticut 2 7 2 5 2 4 Delaware 2 12 2 10 2 District of Columbia. 5 2 27 17 5 5 27 Georgia 4 3 24 16 6 2 13 Idaho 1 1 23 7 16 1 21 Indiana 4 1 32 4 12 17 1 Iowa 52 7 Kentucky 24 21 2 Louisiana 48 24 Maine 52 3 24 Maryland 79 38 19 Massachusetts 102 95 1 Michigan 141 128 Minnesota 6 Mississippi— 24 23 Nebraska 2 New Hampshire 1 New Jersey.. 105 46 92 New York 619 397 619 North Carolina 51 7 7 30 Ohio 164 116 133 3 Oregon 27 10 15 Pennsylvania 82 80 Rhode Island 32 13 7 South Carolina 24 3 21 Tennessee 46 16 17 Utah 2 6 Vermont 3 Virginia 16 Washington 9 Wisconsin 1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

701 OCTOBER 1934 FEDERAL RESERVE BULLETIN NUMBER OF MUTUAL SAVINGS AND PRIVATE BANKS MAINTAINING BRANCHES, NUMBER OF BRANCHES MAINTAINED, AND LOANS AND INVESTMENTS, BY STATES, DEC. 31, 1931, 1932, AND 1933 Number of branches Number of branches Num- Number of Outside head ber of Outside head banks office city banks office city State main- In State main- In taining Total head taining Total head branch- office In Outside branch- office In Outside es city head head es city head head office office office office county county county county 1931 1932 MUTUAL SAVINGS BANKS PRIVATE BANKS Total 72 112 97 13 2 Total 4 5 4 1 California I 4 4 Georgia I 2 I 1 Delaware 1 1 1 Pennsylvania 3 3 3 Maryland. _ . 3 1 1 1 5 14 1 1 1933 Massachusetts 30 40 26 13 1 New Jersey 3 4 4 MUTUAL SAVINGS BANKS New York 27 32 32 Pennsylvania 5 13 13 Total 76 125 108 14 3 Rhode Island.. 1 2 2 California 1 4 4 PRIVATE BANKS Delaware 1 1 1 Maine 1 1 1 Total . 4 5 4 1 Maryland . 2 16 14 2 29 39 24 14 1 Georgia. 1 2 1 1 New Jersey 3 4 4 Pennsylvania 3 3 3 New York __ 34 44 44 Pennsylvania 4 14 14 1932 Rhode Island 1 2 2 MUTUAL SAVINGS BANKS PRIVATE BANKS Total 74 121 105 14 2 Total- 4 5 4 1 California 1 4 4 Geor ia 1 2 1 1 Delaware 1 1 1 Pennsylvania 3 3 3 Maine 1 1 1 Maryland 3 15 14 1 Massachusetts 30 40 25 14 1 New Jersey 3 4 4 New York 30 40 40 Pennsylvania _ __ _ 4 14 14 Rhode Island 1 2 2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

702 FEDERAL RESERVE BULLETIN OCTOBER 1934 FEDERAL DEPOSIT INSURANCE CORPORATION—NUMBER OF LICENSED BANKS AND OF INSURED BANKS, SEPT. 1, 1934 Licensed member All licensed banks banks (all licensed banks are insured) State Total Insured National banks Alabama 216 205 70 Arizona _ _ _ _ 17 15 8 Arkansas 228 211 52 California __ _ 266 255 129 Colorado _ _ 162 144 81 Connecticut 204 110 54 Delaware - _ 49 44 16 District of Colombia 22 22 9 Florida 147 145 50 Georgia _______ 282 261 56 Idaho 64 61 25 Illinois 891 866 288 Indiana 531 481 122 Iowa _- __ _ 623 536 122 Kansas 752 429 196 Kentucky _ __ 434 389 98 Louisiana 148 146 29 Maine _ 104 72 40 Maryland 197 183 63 Massachusetts - 410 212 138 Michigan 429 391 83 Minnesota _ __ _ 691 656 213 Mississippi 215 204 25 Missouri 700 635 90 Montana 126 120 47 Nebraska _ __ 440 379 136 Nevada 11 9 6 New Hampshire _ 112 57 52 New Jersey 418 408 234 New Mexico. _ 43 42 24 New York 937 773 460 North Carolina _ 242 238 43 North Dakota 209 198 Ohio __ __ 697 669 Oklahoma 416 398 Oregon _ _ _ 105 103 Pennsylvania _. 1,101 1,071 Rhode Island 32 16 South Carolina 134 92 South Dakota 214 213 Tennessee 330 316 Texas 919 825 Utah 60 60 Vermont 95 95 Virginia _ 326 319 Washington __ __ _ _ 200 190 West Virginia 179 168 Wisconsin 644 623 Wyoming _ __ 62 62 Total 15,834 14,117 oootoj Licensed nonmember banks Other than mutual Mutual savings State bank savings banks banks members Total Insured Total Insured 18 128 117 4 5 3 7 169 152 15 122 111 (i) 5 76 58 6 71 50 73 4 27 24 2 2 11 11 4 93 91 26 200 179 10 29 26 65 538 513 6 398 349 5 4 23 478 391 13 543 220 10 326 281 3 116 114 6 25 20 33 6 7 114 111 13 2 32 47 42 193 74 272 234 18 459 424 1 1 3 187 176 50 560 495 20 59 53 9 295 234 5 3 1 2 22 4 2 37 52 3 109 101 23 21 3 16 15 115 4 224 196 138 2 10 8 189 185 139 128 68 376 348 3 3 1 196 178 6 45 43 1 1 702 72 320 295 7 2 12 2 9 2 9 19 4 111 69 65 23 126 125 72 4 254 240 459 55 405 311 14 18 28 28 43 33 33 19 19 133 24 169 162 67 27 103 93 3 3 78 18 83 72 107 14 518 498 5 4 26 8 28 28 5,448 965 8,856 6 7, 636 565 68 1 Excludes 1 bank which, although a member of the National Association of Mutual Savings Banks, is not considered a mutual savings bank by the Federal Deposit Insurance Corporation. 2 Nonmember bank figures include and mutual savings bank figures exclude 8 guaranty savings banks. 3 Includes 2 banks which are classified as mutual savings banks in the State banking department abstracts of condition reports but not considered as mutual savings banks by the Federal Deposit Insurance Corporation. 4 Includes 13 industrial banks. «Includes 25 industrial banks. 6 Includes a few banks which had been absorbed or succeeded by other banks prior to Sept. 1, 1934, but whose insurance certificates had not been canceled by that date. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 1934 FEDERAL RESERVE BULLETIN 703 WHOLESALE PRICES, BY GROUPS OF COMMODITIES [Index of Bureau of Labor Statistics. 1926=100] Other commodities All Farm Year, month, and week m c t o o ie m d s i - - p u r c o t d s - Foods Total H p l i r e d o a e d t s h u 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 l m Bu at i e ld ri i a n l g s c C a d h l r s e u m a g n s i d - i f n H u g r o n g u i o s s o e h d - - s l M an is e c o e u l s - 1929 95.3 104.9 91.6 109.1 90.4 83.0 100.5 95.4 94.2 94.3 82.6 1930 86.4 88.3 90.5 85.2 100.0 80.3 78.5 92.1 89.9 89.1 92.7 77.7 1931 73.0 64.8 74.6 75.0 86.1 66.3 67.5 84.5 79.2 79.3 84.9 69.8 1932 64.8 48.2 61.0 70.2 72.9 54.9 70.3 80.2 71.4 73.5 75.1 64.4 1933 65.9 51.4 60.5 71.2 80.9 64.8 66.3 79.8 77.0 72.6 75.8 62.5 1933—August 69.5 57.6 64.8 74.1 91.7 74.6 65.5 81.2 81.3 73.1 77.6 65.4 September 70.8 57.0 64.9 76.1 92.3 76.9 70.4 82.1 82.7 72.7 79.3 65.1 October 71.2 55.7 64.2 77.2 89.0 77.1 73.6 83.0 83.9 72.7 81.2 65.3 November 71.1 56.6 64.3 77.2 88.2 76.8 73.5 82.7 84.9 73.4 81.0 65.5 December 70.8 55.5 62.5 77.5 89.2 76.4 73.4 83.5 85.6 73.7 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 75.5 81.0 68.5 March 73.7 61.3 67.3 78.5 88.7 76.5 71.4 87.1 86.4 75.7 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 75.4 82.0 69.8 June 74.6 63.3 69.8 78.2 87.1 72.7 72.8 87.7 87.8 75.6 82.0 70.2 July 74.8 64.5 70.6 78.4 86.3 71.5 73.9 86.8 87.0 75.4 81.6 69.9 August 76.4 73.9 78.3 83.8 70.8 74.6 86.7 85.8 75.7 81.8 70.2 Week ending— 1934—June 2 73.9 60.6 67.7 79.0 87.7 72.7 73.7 88.7 87 6 75.3 83.6 June 9 73.8 60.7 67.6 78.9 87.2 72.7 73.8 87.8 87.8 75.4 83.4 70.0 June 16 74.6 63.7 70.2 78.9 87.6 72.5 73.7 88.0 87.7 • 75.4 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 75.8 83.2 70.1 July 7 74.7 64.1 71.0 78.6 87.9 71.5 74.2 86.9 87.5 75.7 83.1 July 14 74.5 64.5 70.8 78.3 87.6 71.4 73.8 86.4 86.9 75.5 83.1 July 21 75.1 66.1 71.2 78.6 87.0 71.6 74.7 86.4 87.4 75.6 83.0 70.0 July 28 74.7 64.5 70.8 78.5 86.1 71.4 74.7 86.3 86.7 75.6 83.0 70.1 Aug. 4 75.1 66.6 71.8 78.4 85.1 71.1 74.7 86.2 87.1 75.5 83.0 Aug. 11 _. 75.4 67.3 72.2 78.4 84.6 70.8 75.3 85.9 86.5 75.5 82.8 70.1 Aug. 18 76.1 68.9 74.1 78.4 84.2 71.1 75.2 85.9 86.4 75.9 82.9 70.3 Aug. 25 76.9 71.8 75.5 78.4 84.6 71.1 75.2 85.9 86.4 76.0 82.9 70.1 Sept. 1 77.5 73.5 76.6 78.4 84.5 71.3 75.1 85.9 86.3 76.3 82.9 70.3 Sept. 8 77.8 74.3 77.2 78.5 84.6 70.6 75.4 85.9 86.3 76.3 82.9 70.6 Sept. 15 77.5 73.7 76.2 78.5 84.8 70.6 75.5 85.9 85.9 76.5 83.0 70.7 Sept. 22 77.5 73.6 76.7 78.4 84.9 70.8 75.5 85.7 85.4 76.8 83.1 70.4 Sept. 29 77.2 72.8 76.0 78.4 84.9 70.7 75.5 85.7 85.3 77.0 83.1 70.3 1933 1934 1933 1934 Subgroups Subgroups Aug. May I June July Aug. Aug. May June July FARM PRODUCTS: METALS AND METAL PRODUCTS: Grains 64.6 63.9 72.4 74.8 86.0 Agricultural implements 83.2 91.1 91.1 92.0 92.0 Livestock and poultry 45.9 47.8 48.3 48.8 56.2 Iron and steel 78.6 90.2 88.6 86.7 86.6 Other farm products 62.5 65.0 69.4 70.5 73.1 Motor vehicles 90.4 97.3 95.0 94.6 94.6 FOODS: Nonferrous metals 68.2 68.1 68.5 68.8 68.9 Butter, cheese, and milk 65.7 67.1 73.0 74.8 77.3 BUILDING MATERIALS: Cereal products 84.8 87.3 89.2 88.9 91.0 Brick and tile 81.5 91.2 91.1 91.3 91.3 Fruits and vegetables 71.1 68.2 70.1 68.2 65.6 Cement 90.3 89.4 93.9 93.9 93.9 Meats 51.0 60.0 62.2 63.4 69.4 Lumber 79.4 85.9 86.3 85.3 81.8 Other foods _ 62.6 60.8 62.8 64.5 Paint materials 77.5 80.3 80.3 79.8 79.9 HIDES AND LEATHER PRODUCTS: Plumbing and heating 70.3 75.0 75.1 75.0 75.0 Boots and shoes 96.1 98.5 98.4 98.0 97.9 Structural steel 81.7 94.5 94.5 92.5 92.0 Hides and skins 91.5 73.5 70.1 66.6 57.4 Other building materials 85.0 92.0 92.0 90.9 90.0 Leather 82.5 76.3 75.3 75.1 71.3 CHEMICALS AND DRUGS: Other leather products 81.2 86.8 86.8 Chemicals _ 79.6 78.6 78.6 78.5 79.2 TEXTILE PRODUCTS: Drugs and Pharmaceuticals. _. 57.6 72.8 73.1 73.0 72.7 Clothing 74.4 82.7 82.6 81.9 79.5 Fertilizer materials _ 69.0 66.4 67.9 67.6 64.8 Cotton goods 93.5 86.3 86.0 85.1 86.4 Mixed fertilizers 64.4 73.2 73.4 72.8 73.0 Knit goods 69.4 65.3 62.8 59.5 59.3 HOUSEFURNISHING GOODS: Silk and rayon 34.6 26.5 25.0 24.5 24.4 Furnishings 78.6 84.1 85.1 84.8 84.6 Woolen and worsted goods 78.9 81.0 80.8 80.7 78.9 Furniture ' 76.8 80.1 79.0 78.5 78.9 Other textile products 77.8 77.3 74.8 69.7 MISCELLANEOUS: FUEL AND LIGHTING MATERIALS: Auto tires and tubes 43.2 44.6 44.6 44.6 44.7 Anthracite 79.2 75.7 76.9 78.6 79.9 Cattle feed 78.0 72.5 86.9 88.8 104.0 Bituminous coal 83.6 94.6 95.0 95.7 96.2 Paper and pulp _ 81.0 83.7 83.5 82.4 82.4 Coke...- 77.4 84.5 85.0 85.6 85.6 Rubber, crude 14.9 27.7 27.7 29.9 31.7 Electricity 90.6 92.4 O ther miscellaneous 77.8 83.6 83.1 82.3 81.0 Gas 99.5 94.6 97.5 99.2 Petroleum products 40.9 50.7 50.6 51.3 51.6 Back figures.—For monthly and annual indexes of groups, see Annual Report for 1933 (table 120); indexes of subgroups available at Bureau of Labor Statistics. For weekly indexes covering 1932 and 1933, see Annual Report for 1933 (table 121) and BULLETIN for February 1934, p. 139. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

704 FEDERAL RESERVE BULLETIN OCTOBER 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 Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Manufactures—Total 91 83 76 70 73 76 80 82 85 86 83 74 *72 IRON AND STEEL _ . ._ 80 65 60 47 60 56 63 66 76 84 85 47 38 Pig iron 63 53 45 36 40 40 45 51 55 66 66 42 36 Steel ingots _ 81 67 62 48 62 57 65 68 78 85 87 48 39 P81 Cotton consumption 120 103 95 89 77 91 95 97 97 95 74 79 86 Wool 107 96 88 80 67 70 73 72 66 65 63 P 62 p 60 Consumption 118 105 97 86 73 70 72 71 68 63 61 p Q2 v 61 Machinery activity * 115 96 83 81 69 83 85 82 71 72 68 71 68 Carpet and rug loom activity * 61 67 67 63 48 48 54 59 53 57 62 47 45 Silk deliveries 113 91 82 103 92 103 114 129 115 112 109 101 96 FOOD PRODUCTS 95 105 85 91 86 96 91 84 93 98 96 102 106 Slaughtering and meat packing 110 127 90 98 89 100 94 86 102 108 103 120 128 Hogs 113 147 85 101 85 95 80 69 95 104 87 92 79 Cattle 102 95 91 87 88 102 112 106 110 110 123 155 192 Calves 105 106 104 104 106 122 122 122 120 128 139 198 244 Sheep 146 144 151 142 147 139 133 131 129 127 128 134 145 Wheat flour 64 70 76 82 81 91 94 92 91 89 90 81 79 Sugar meltings 84 75 76 82 78 87 73 65 64 71 80 69 64 PAPER AND PRINTING: Newsprint production 69 60 66 71 67 64 63 66 68 68 64 63 63 Newsprint consumption 103 106 105 104 106 108 112 112 115 115 118 116 117 LUMBER.. 46 36 33 30 32 34 29 38 33 33 31 29 36 TRANSPORTATION EQUIPMENT: Automobiles 60 55 45 30 45 56 71 78 85 78 82 78 61 Locomotives . 1 1 0 2 3 2 0 0 10 10 2 3 5 Shipbuilding 15 20 39 41 41 26 30 59 65 39 38 28 95 LEATHER AND PRODUCTS 102 92 93 92 94 97 107 106 116 117 100 99 96 Tanning 88 82 82 91 89 91 94 88 95 93 87 86 83 Cattle hide leathers 77 74 76 85 84 81 89 84 90 89 85 81 82 Calf and kip leathers 82 73 69 84 90 85 78 72 85 78 82 74 67 Goat and kid leathers.. _ __ 126 113 109 111 103 126 124 116 118 118 99 114 101 Boots and shoes 110 99 100 93 97 101 116 118 130 133 109 '107 104 CEMENT AND GLASS: Cement 50 37 35 39 36 49 61 58 55 57 58 53 48 Glass, plate _. _ _ 130 107 70 52 106 99 98 106 98 83 77 92 86 NONFERROUS METALS: 3 Tin deliveries L. 125 112 95 80 56 55 54 58 71 73 68 64 65 FUELS, MANUFACTURED: Petroleum refining 153 '158 152 '146 '138 142 144 143 152 153 154 156 157 Gasoline *__ _ 198 205 195 184 '171 177 181 177 191 191 195 201 202 Kerosene - 87 82 77 77 80 89 87 95 98 95 94 92 91 Fuel oil1 '99 '101 '101 '96 '96 95 98 101 99 101 103 100 102 Lubricating oilJ 84 88 88 102 92 92 86 90 100 108 95 92 90 Coke, byproduct- 96 91 82 75 77 78 85 91 93 102 100 78 74 RUBBER TIRES AND TUBES. -_ 111 103 90 97 108 97 100 106 97 81 84 83 79 Tires, pnfiiimatio 116 107 93 100 113 101 103 110 100 83 87 85 82 Inner tubes .. 75 72 68 72 68 69 74 82 76 63 62 68 57 TOBACCO PRODUCTS 123 115 108 95 123 138 132 119 128 128 132 128 126 Cigars— _ 68 68 57 62 67 74 66 66 66 62 65 63 66 Cigarettes 163 151 143 118 166 188 181 158 175 178 183 177 172 Minerals—Total 91 87 81 81 85 88 91 100 90 89 87 85 80 A Bi n t t u h m ra i c n i o te us coal 7 6 5 1 6 7 5 4 6 5 1 5 6 7 5 3 6 6 6 8 6 8 7 2 8 7 9 4 1 8 0 4 9 7 7 2 3 7 7 2 6 6 6 7 9 6 6 5 3 6 5 1 0 Pfttrnlenm, nrudfl 134 '126 '121 '117 119 120 118 122 125 127 130 128 124 Iron ore 57 68 63 23 40 54 52 47 Zinc 77 77 77 72 67 66 66 68 64 65 57 57 60 Lead 36 57 64 71 67 64 64 57 56 66 56 53 44 Silver .. . 28 39 33 33 29 37 36 47 45 44 45 40 39 i Without seasonal adjustment. 2 Includes also lead and zinc: see "Minerals." Preliminary. r Revised. 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. Series on silk loom activity and on production of book paper, wrapping paper, fine paper, mechanical wood pulp, chemical wood pulp, and paper boxes, usually published in this table, are in process of revision. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 1934 FEDERAL RESERVE BULLETIN 705 INDUSTRIAL PRODUCTION, BY INDUSTRIES (UNADJUSTED INDEXES) [Index numbers of the Federal Reserve Board; without seasonal adjustment. 1923-25 average=100] 1933 1934 Industry Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Manufactures—Total -. . 89 84 76 70 67 75 82 85 89 89 83 73 *73 IRON AND STEEL 78 65 59 43 53 53 66 75 84 91 85 44 38 Pig iron 60 52 45 37 39 40 46 53 59 67 66 40 35 Steel ingots _ 80 66 60 44 54 55 68 77 87 93 87 44 38 Cotton consumption 108 100 97 93 71 95 101 102 104 97 71 72 77 Wool _ 103 99 93 84 68 71 76 73 65 62 60 v 58 C M o a n c s h u in m e p ry ti o a n ctivity 1 1 1 1 0 5 11 9 1 6 10 8 7 3 9 8 3 1 7 6 4 9 7 8 2 3 7 8 9 5 7 8 3 2 6 7 5 1 5 7 8 2 5 6 5 8 71 P 6 5 8 7 Carpet and rug loom activity 61 67 67 63 48 48 54 59 53 57 62 47 45 Silk deliveries 118 95 82 106 82 117 122 124 114 111 97 96 100 FOOD PRODUCTS __ _ 88 99 86 96 89 102 90 82 87 96 95 100 100 Slaughtering and meat-packing 93 110 89 108 106 119 94 81 92 105 102 113 115 Hogs.__ 86 110 73 111 112 128 88 69 84 100 89 82 60 Cattle 100 106 107 100 93 103 98 92 97 107 116 154 188 Calves _ 96 101 109 106 100 113 114 124 131 144 144 192 224 Sheep 147 167 167 141 144 140 125 119 121 124 126 134 146 Wheat flour _ 69 83 86 89 78 89 91 86 83 84 80 78 85 Sugar mfil tings 94 80 72 64 45 57 71 77 75 80 95 84 72 PAPER AND PRINTING: Newsprint production 68 60 66 70 67 65 63 65 69 69 66 61 62 Newsprint consumption .. 92 104 111 111 109 104 110 117 123 119 117 103 104 LUMBER __. 30 29 49 37 34 29 29 28 39 35 35 32 38 TRANSPORTATION EQUIPMENT: Automobiles 46 82 Locomotives. _ 661 601 400 129 254 1 760 960 1099 9180 932 3 675 Shipbuilding. 22 20 28 36 32 18 21 46 63 50 47 41 140 LEATHER AND PRODUCTS. 113 107 102 88 81 90 109 110 114 108 97 '98 106 Tanning 90 87 87 89 87 87 97 88 93 88 86 86 84 Cattle hide leathers 75 77 78 85 81 82 95 85 90 85 83 79 80 Calf and kip leathers 99 85 82 79 77 70 72 64 76 74 79 86 81 Goat and kid leathers . 124 119 113 110 112 119 129 119 117 109 99 105 99 Boots and shoes 127 119 112 88 76 92 117 124 127 121 103 '105 120 CEMENT AND GLASS: Cement _ ._ . .. _ 65 46 40 38 28 30 37 42 53 68 72 64 62 Glass, plate 132 108 7a 50 80 88 106 115 108 90 79 91 87 NONFERROUS METALS: * Tin deliveries 125 112 95 80 56 55 54 58 71 73 68 64 65 FUELS, MANUFACTURED: Petroleum refining 153 ' 158 152 ' 147 138 142 144 143 152 153 154 156 157 G K a e s ro o s li e n n e e 19 8 8 3 20 8 5 3 19 8 5 0 18 8 4 3 ' 18761 17 9 7 1 18 8 1 8 17 9 7 2 19 9 1 7 19 9 1 2 19 8 5 7 20 8 1 6 20 8 2 7 Fuel oil '99 ••101 ' 101 '96 '96 95 98 101 99 101 103 100 102 Lubricating oil- __ 84 88 88 102 92 92 86 90 100 108 95 92 90 Coke, byproduct 93 89 82 77 78 78 87 94 94 101 98 75 72 RUBBER TIRES AND TUBES 110 98 79 73 75 90 108 117 115 102 102 81 78 Tires, pneumatic 114 101 81 75 78 93 112 121 118 106 105 83 81 Inner tubes 83 72 62 52 49 62 78 89 87 77 74 65 62 TOBACCO PRODUCTS. 131 128 116 97 99 131 120 113 118 130 144 139 135 Cigars 72 77 69 73 50 57 57 60 62 64 70 67 69 Cigarettes _. 176 167 150 117 136 185 164 150 159 179 202 194 186 Minerals—Total 94 93 88 84 80 85 88 91 81 87 87 85 83 Bituminous coal _ _ _- 74 69 67 72 69 74 78 84 60 62 60 59 60 Anthracite 61 75 71 75 67 89 95 89 76 76 60 52 50 Petroleum, crude '137 ' 130 122 ' 116 115 115 116 121 125 128 132 131 126 Iron ore 117 131 108 19 60 106 105 95 Zinc 71 73 75 72 68 70 71 72 67 66 55 53 56 Lead 35 54 66 74 68 65 66 58 55 65 57 51 43 Silver 28 37 33 36 29 37 39 52 46 43 44 34 39 1 Includes also lead and zinc; see "Minerals." v Preliminary. r Revised. 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. Series on silk loom activity and on production of book paper, wrapping paper, fine paper, mechanical wood pulp, chemical wood pulp, and paper boxes, usually published in this table, are in process of revision. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

706 FEDERAL RESERVE BULLETIN OCTOBER 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 Without seasonal adjustment variation Without seasonal adjustment Industry and group 1934 1933 1934 1933 1934 1933 August July August August July August August July August TotaL. *>79.4 78.6 76.4 P79.2 79.4 76.4 60.4 56.8 IRON AND STEEL AND PRODUCTS 68.6 70.3 68.4 68.8 71.4 68.7 45.5 47.6 50.0 Blast furnaces and steel works 69.7 72.4 69.8 70.3 73.4 70.4 44.0 47.9 53.1 Cast-iron pipe 53.8 51.9 44.1 52.4 50.3 43.0 29.2 27.4 23.3 Cutlery and edge tools 77.7 75.4 68.6 81.7 78.4 72.1 53.0 53.4 46.8 Hardware 51.3 51.8 63.0 53.2 53.1 65.3 37.9 34.8 44.2 Steam, hot-water heating apparatus, etc.. 48.6 48.3 57.8 48.2 49.1 57.3 30.3 31.2 33.7 Stoves 87.7 86.6 80.4 87.9 95.4 80.4 57.7 56.5 53.8 Structural metal work 59.0 59.0 49.3 57.6 57.8 48.1 41.8 40.6 29.7 Tin cans, etc 99.1 99.6 89.8 92.4 95.8 83.8 93.6 94.5 80.8 Wirework 116.3 123.6 117.8 114.0 126.4 115.4 90.1 96.0 103.4 MACHINERY 78.6 78.6 64.5 78.1 79.1 64.2 57.8 58.1 43.5 Agricultural implements 66.8 69.3 43.5 70.5 73.2 45.9 68.3 70.2 37.0 Electrical machinery, etc 65.3 65.1 55.0 65.3 65.1 55.0 50.2 49.8 37.5 Engines, turbines, etc 71.8 71.4 43.5 71.5 70.8 43.3 47.9 45.6 24.0 Foundry and machine-shop products- 69.0 69.5 59.4 68.9 69.5 59.3 50.3 51.1 39.9 Machine tools 66.1 69.1 44.0 73.2 69.8 48.7 49.0 51.5 30.6 Radios and phonographs 217.5 205.0 158.7 197.7 213.5 144.3 123.1 114.4 84.2 Textile machinery 66.5 71.3 75.9 66.6 71.6 76.0 49.3 56.1 61.7 TRANSPORTATION EQUIPMENT 83.3 87.8 61.6 83.3 85.3 61.7 69.9 65.4 49.7 Automobiles 92.5 98.4 68.7 92.3 95.5 68.6 76.5 70.7 55.7 Cars, electric and steam railroad _ 48.1 51.3 29.4 45.8 47.9 28.0 47.0 46.3 24.2 Locomotives 38.5 35.5 17.5 38.0 33.8 17.3 17.7 16.4 5.9 Shipbuilding 71.2 69.2 57.5 75.3 70.8 60.8 56.4 55.6 40.0 RAILROAD REPAIR SHOPS. 55.2 58.3 54.2 55.0 58.0 54.0 48.5 51.1 45.9 Electric railroads 66.0 66.3 64.7 66.0 66.3 64.7 58.5 58.8 53.4 Steam railroads 54.4 57.7 53.3 54.2 57.4 53.1 47.9 50.6 45.5 NONFERROUS METALS AND PRODUCTS.. 73.5 73.2 69.2 75.0 75.1 70.4 53.6 54.1 48.3 Brass, bronze, and copper 72.7 75.0 76.2 73.3 75.8 76.8 51.2 54.4 52.9 Lighting equipment 61.9 61.7 55.5 63.3 64.7 56.7 48.2 49.2 42.0 Silverware and plated ware 69.3 61.3 49.9 71.1 66.1 51.2 48.3 43.6 32.9 Smelting and refining 70.5 68.6 55.1 73.0 69.7 57.0 42.8 43.2 33.8 Stamped and enameled ware 87.1 90.3 89.3 89.1 91.4 91.3 70.8 72.9 62.3 LUMBER AND PRODUCTS. 49.0 48.8 50.4 48.4 48.8 49.8 33.5 31.6 32.4 Furniture 62.9 62.0 68.7 62.8 64.9 68.6 42.7 39.3 43.9 Lumber, millwork... 36.2 37.0 39.8 35.7 36.7 39.2 23.1 23.1 23.8 Lumber, sawmills 33.9 33.8 33.6 33.0 33.1 32.7 22.1 20.9 20.1 STONE, CLAY, AND GLASS PRODUCTS.. 53.1 54.2 52.8 52.0 53.9 51.4 34.9 36.1 Brick, tile, and terra cotta 31.8 31.7 35.6 29.4 29.3 32.9 16.8 17.0 17.4 Cement 55.0 58.4 53.1 51.6 54.3 49.9 35.4 39.1 32.0 Glass 87.6 89.1 77.8 89.1 92.8 79.1 68.2 69.5 59.6 Pottery 63.4 64.1 65.1 64.1 66.6 65.8 37.8 38.4 42.9 TEXTILES AND PRODUCTS *88.2 85.9 97.8 P91.3 90.2 101.2 »68.1 62.5 74.1 A. Fabrics 85.6 87.0 99.3 *>89.0 90.6 103.1 64.7 64.4 79.2 Carpets and rugs 65.5 67.4 71.3 67.7 71.2 73.7 47.9 48.4 56.7 Cotton goods 88.7 92.2 101.6 93.4 95.2 106.9 63.3 66.1 82.2 Dyeing and finishing 100.6 99.4 107.7 105.0 106.0 112.4 76.9 70.6 83.0 Knit goods 102.6 101.9 105.2 106.8 107.4 109.4 89.4 86.0 91.7 Silk and rayon goods 73.9 73.4 75.1 75.1 91.3 59.7 55.9 70.7 Woolen and worsted goods.. P68.2 70.1 69.7 73.7 101.0 48.1 50.1 73.8 B. Wearing apparel 90.1 79.8 90.3 92.4 85.5 92.4 70.6 55.3 59.5 Clothing, men's 88.4 81.4 85.8 80.7 86.0 65.6 54.5 58.7 Clothing, women's 110.0 89.6 119.0 106. 0 106.9 85.2 60.9 56.9 Millinery 65.4 50.1 80.7 68.1 58.1 84.0 59.4 37.7 66.5 Shirts and collars 97.3 93.7 107.1 98.9 97.1 109.3 90.7 82.2 88.1 LEATHER AND PRODUCTS. 91.1 89.4 92.9 87.9 88.9 89.7 78.7 77.2 78.2 Boots and shoes 91.9 89.0 93.2 87.5 87.7 88.8 79.1 76.2 77.7 Leather 88.4 91.5 92.2 89.7 94.1 93.6 76.1 79.2 78.6 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 1934 FEDEBAL RESERVE BULLETIN 707 FACTORY EMPLOYMENT AND PAY ROLLS, BY INDUSTRIES—Continued [Adjusted to Census of Manufactures through 1931. 1923-25 average=100] Factory employment Factory pay rolls Adjusted for seasonal Without seasonal adjustment variation Without seasonal adjustment Industry and group 1934 1933 1934 1933 1934 1933 August July August August July August August July August FOOD PRODUCTS 122.1 110.1 105.4 110.8 v 106.7 97.4 105.1 95.6 82.1 Baking 115.8 116.3 102.7 115.4 114.6 102.4 97.8 98.2 83.1 Butter 85.5 86.9 81.9 78.7 78.7 75.4 62.7 66.6 61.3 Canning and preserving 194.3 120.6 141.6 105.6 97.3 77.0 195.4 103.6 104.0 Confectionery. 71.5 66.4 83.2 76.4 76.6 88.9 60.8 55.4 63.4 Flour 78.2 77.5 66.2 77.0 76.7 65.2 64.8 65.0 49.3 Ice cream 88.7 90.8 73.0 75.6 75.9 62.2 68.8 72.6 56.2 Slaughtering and meat packing 112.4 103.5 94.2 114.7 104.1 96.1 99.0 91.4 72.1 Sugar refining, cane 87.5 82.3 81.9 84.2 79.1 78.8 74.0 65.9 69.7 TOBACCO PRODUCTS 65.1 61.1 62.2 65.4 61.8 62.4 49.3 47.3 44.5 Chewing and smoking tobacco and snuff.. 73.6 72.9 75.8 75.3 76.7 77.6 66.6 67.0 68.0 Cigars and cigarettes 64.0 59.6 60.4 64.1 59.9 60.4 47.1 44.8 41.6 PAPER AND PRINTING 93.8 93.4 88.7 95.0 94.4 89.9 78.4 77.3 71.0 Boxes, paper 84.1 83.1 85.2 85.4 85.4 86.6 74.5 71.6 71.1 Paper and pulp 104.8 104.8 97.6 104.8 104.8 97.6 78.8 77.1 76.2 Book and job printing 85.0 83.7 79.1 86.4 84.8 80.4 71.6 70.3 60.6 Printing, newspapers and periodicals.. 96.6 96.8 90.8 98.6 98.1 92.7 84.9 84.8 76.4 CHEMICALS AND PETROLEUM PRODUCTS P 106.9 105.3 99.1 p 110.9 109.6 103.0 P89.9 88.7 77.9 A. Chemical group, except petroleum 105.3 103.8 99.1 110.8 109.7 104.4 P87. 7 86.6 76.6 Chemicals 110.9 112.3 96.8 114.9 115.1 100.3 96.5 96.6 81.0 Druggists' preparations 98.6 93.8 88.7 100.6 99.0 90.5 89.9 86.1 81.0 Explosives 90.5 92.0 79.9 89.8 93.0 79.3 72.9 71.0 60.3 Fertilizers P 75.1 71.0 64.2 P99.4 104.7 85.0 p 58.0 56.9 46.4 Paints and varnishes. P98. 2 101.2 93.5 P 100.9 101.4 96.1 P76.9 78.8 69.8 Rayon and allied products 304.2 296.8 316.1 304.2 296.8 316.1 213.2 208.6 197.8 Soap 98.6 97.7 96.6 100.0 100.8 98.0 86.1 84.3 75.3 B. Petroleum refining 113.4 111.7 98.9 111.3 109.3 97.1 97.2 95.7 82.2 RUBBER PRODUCTS 80.7 83.9 86.6 82.0 82.8 87.9 58.8 61.9 61.9 Rubber boots and shoes _ 55.2 53.4 53.1 57.9 55.2 55.7 50.5 49.4 50.3 Rubber tires and inner tubes 73.9 77.4 78.0 73.8 74.0 77.9 49.9 55.9 53.3 p Preliminary. NOTE.—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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

708 FEDERAL RESERVE BULLETIN OCTOBER 1934 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. 62.7 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 66.6 131.4 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 9.6 June _ 102.3 127.1 27.7 26.6 26.8 8.7 9.6 11.9 24.4 57.4 3.5 9.7 10.3 12.8 July 82.6 119.7 23.6 rl9.8 17.8 25.7 11.5 12.9 18.9 39.1 2.9 7.8 7.8 14.4 August 106.0 120.2 21.9 18.6 14.1 10.0 10.5 13.5 51.4 50.6 2.6 12.3 5.6 15.2 September 120.1 21.5 15.1 7.4 60.7 2.2 13.0 October 146 4 21 5 9 8 9.8 92.7 2.2 9 3 162.3 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 1,265.7 249.3 127.5 99.4 602.7 40.0 136.9 r Revised. CONSTRUCTION CONTRACTS AWARDED, BY COMMERCIAL FAILURES, BY DISTRICTS DISTRICTS [Amounts in thousands of dollars; figures reported by Dun & Bradstreet] [Value of contracts in thousands of dollars; figures for 37 States east of the Rocky Mountains, as reported by the F. W. Dodge Corporation] Number Liabilities 1934 1933 Federal Reserve district 1934 1934 1933 Federal Reserve district Aug. July Aug. Aug. July Aug. Aug. July Aug. Boston _ 11,074 11, 522 16,680 New York 23,381 21,379 26, 527 Boston 106 66 150 1,580 1,368 3,272 Philadelphia 6,434 5,888 5,113 New York 339 336 348 6,993 7,748 11,942 Cleveland 17,057 10,121 12,039 Philadelphia.. 33 48 80 1,767 1,336 3,048 Richmond 12, 111 18,092 6,157 Cleveland 67 56 118 1,920 1,719 3,791 Atlanta 6,322 10,874 4,719 Richmond 51 61 91 441 1,718 1,918 Chicago 15,749 18,920 14,844 Atlanta 19 31 57 349 342 1,633 St. Louis. 8,228 9,739 6,238 Chicago 106 75 189 2,754 1,639 4,169 Minneapolis.-. 3,335 4,425 3,578 St. Louis 25 18 45 336 149 843 Kansas City 10,746 3,695 4,819 Minneapolis.. 16 18 65 110 238 2,343 Dallas.- 5,806 5,045 5,417 Kansas City.. 44 37 84 518 481 3,019 Dallas 17 22 53 146 361 1,559 Total (11 districts) 120, 245 119,699 106,131 San Francisco 106 144 192 1,546 2,227 5,239 Total. _. 929 912 1,472 18,460 19,326 42,776 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 1934 FEDERAL RESERVE BULLETIN 709 SEPTEMBER CROP REPORT, BY FEDERAL RESERVE DISTRICTS [Based on estimates, by States, for Sept. 1,1934, as reported by the Department of Agriculture] [In thousands of units] Corn Total wheat Winter wheat Spring wheat Federal Reserve district Production Estimate Production Estimate Production Estimate Production Estimate 1933 Se 1 p 9 t 3 . 4 1, 1933 Se 1 p 9 t 3 . 4 1, 1933 S 1 e 9 p 3 t 4 . 1 1, 1933 Se 1 p 9 t 3 . 4 1, Bushels Bushels Bushels Bushels Bushels Bushels Bushels Bushels Boston 7,545 7,776 120 110 120 110 NewYork.... 20,821 23,748 5,175 5,041 5,051 4,917 124 124 Philadelphia— 44,551 47,988 14,189 13,638 14,104 13, 570 85 68 Cleveland 150,851 129,940 38,866 37,433 38, 766 37,372 100 61 Richmond 133,164 135, 045 19, 669 22, 306 19, 669 22,306 Atlanta 151,672 161,808 3,039 3,598 3,039 3,598 Chicago 835,127 541,982 46, 742 48, 681 44, 426 46,973 2,316 1,708 St. Louis 296,955 174, 782 38, 556 44,858 38,434 44,813 122 45 Minneapolis. _ 219,136 131, 590 115,137 65,894 9,775 9,698 105,362 56,196 Kansas City- 389,334 58,929 131,990 144,301 123, 614 140, 702 8,376 3,599 Dallas.. _ 85,035 63,072 13,719 26,130 13, 626 26,070 93 60 San Francisco 9,692 7,942 100, 776 81, 295 41,104 50, 503 59, 672 30, 792 TotaL__ 2,343, 883 1,484, 602 527,978 493,285 351, 608 400, 522 176,370 92,763 Oats Tame hay Tobacco White potatoes Cotton Federal Reserve district t P io r n o d 1 u 9 c 3 - 3 E S s e t 1 i p 9 m t 3 . 4 a 1 t , e t P io r n o d 1 u 9 c 3 - 3 E S s e t 1 i p 9 m t 3 . 4 a 1 te , t P io r n o d 1 u 9 c 3 - 3 E S s e t 1 i p 9 m t 3 . 4 a 1 t , e t P io r n o d 1 u 9 c 3 - 3 E S s e t 1 i p 9 m t 3 . 4 a 1 t , e t P io r n o d 1 u 9 c 3 - 3 E S s e 1 t p 9 im t 3 . 4 a 1 t , e Bushels Bushels Tons Tons Pounds Pounds Bushels Bushels Bales Bales Boston 7,446 7,271 2,854 2,784 24,012 18,422 49,770 58,005 New York.... 17,877 23, 759 4,850 3,687 906 692 28,314 29,076 Philadelphia- 13,106 14,395 2,288 1,903 25,330 24, 701 20, 786 22,965 Cleveland 35,159 34,703 3,929 3,144 117,615 101,193 15,501 16,900 Richmond 16,942 15,405 2,918 2,659 748, 327 566, 500 22, 506 32,153 1,456 1,397 Atlanta 8,183 9,973 1,927 2,032 167,156 117,220 11, 030 14,898 2,569 2,337 Chicago 314,089 202,862 13, 289 9,215 17,814 15,159 39, 752 46, 712 St. Louis 37,207 20,082 5,249 3,750 277,750 230, 843 9,107 8,727 2 2,554 3 1,801 Minneapolis. _ 146,952 110, 765 7,896 5,027 1,231 1,065 42, 539 43,032 Kansas City.. 84, 234 50, 596 8,675 5,654 4,966 2,322 30,473 19,021 1,051 527 Dallas 22, 347 35, 652 881 761 4,419 4,769 5,114 2,878 San Francisco 27,982 20, 407 11,227 10, 111 46,156 40,883 303 312 Total.. . 731, 524 545,870 65,983 50, 727 1, 385,107 1, 078,117 ), 353 337,141 13,047 9,252 1 Figures for winter wheat from estimate for Aug. 1; no estimate for Sept. 1. 2 Includes 15,000 bales grown in miscellaneous territory. 3 Includes 12,000 bales grown in miscellaneous territory. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE DISTRICTS -MMBOUNDARIES OF FEDERAL RESERVE DISTRICTS .— BOUNDARIES OF FEDERAL RESERVE BRANCH TERRITORIES $ FEDERAL RESERVE BANK CITIES • FEDERAL RESERVE BRANCH CITIES O FEDERAL RESERVE BANK AGENCY Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis