Federal Reserve Bulletin, 1936-06

FEDERAL RESERVE BULLETIN JUNE 1936 ISSUED BY THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM AT WASHINGTON Recent Business and Credit Developments Annual Report of Bank for International Settlements UNITED STATES OF AMERICA 1936 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM MARRINER S. ECCLES, Chairman JOSEPH A. BRODERICK RONALD RANSOM M. S. SZYMCZAK RALPH W. MORRISON JOHN K. MCKEE CHARLES S. HAMLIN, Special Counsel LAWRENCE CLAYTON, Assistant to the Chairman ELLIOTT THURSTON, Special Assistant to the Chairman CHESTER MORRILL, Secretary LISTON P. BETHEA, Assistant Secretary S. R. CARPENTER, Assistant Secretary J. C. NOELL, Assistant Secretary WALTER WYATT, General Counsel GEORGE B. VEST, Assistant General Counsel B. MAGRUDER WINGFIELD, Assistant General Counsel J. P. DREIBELBIS, Assistant General Counsel LEO H. PAULGER, Chief, Division of Examinations R. F. LEONARD, Assistant Chief, Division of Examinations C. E. CAGLE, Assistant Chief, Division of Examinations E. A. GOLDENWEISER, Director, Division of Research and Statistics WOODLIEF THOMAS, Assistant Director, Division of Research and Statistics LAUCHLIN CURRIE, Assistant Director, Division of Research and Statistics GEORGE W. BLATTNER, Assistant Director, Division of Research and Statistics E. L. SMEAD, Chief, Division of Bank Operations J. R. VAN FOSSEN, Assistant Chief, Division of Bank Operations J. E. HORBETT, Assistant Chief, Division of Bank Operations CARL E. PARRY, Chief, Division of Security Loans PHILIP E. BRADLEY, Assistant Chief, Division of Security Loans O. E. FOULK, Fiscal Agent JOSEPHINE E. LALLY, Deputy Fiscal Agent FEDERAL OPEN MARKET COMMITTEE FEDERAL ADVISORY COUNCIL MARRINER S. ECCLES, Chairman District No. 1 (BOSTON) THOMAS M. STEELE. GEORGE L. HARRISON, Vice Chairman District No. 2 (NEW YORK) JAMES H. PERKINS. JOSEPH A. BRODERICK District No. 3 (PHILADELPHIA) HOWARD A. LOEB, M. J. FLEMING Vice-President. G. H. HAMILTON District No. 4 (CLEVELAND) ARTHUR E. BRAUN. JOHN K. MCKEE District No. 5 (RICHMOND) CHARLES M. GOHEN. B. A. MCKINNEY District No. 6 (ATLANTA) H. LANE YOUNG. RALPH W. MORRISON District No. 7 (CHICAGO) EDWARD E. BROWN. RONALD RANSOM District No. 8 (ST. LOUIS) WALTER W. SMITH, GEORGE J. SCHALLER President. M. S. SZYMCZAK District No. 9 (MINNEAPOLIS) THEODORE WOLD. District No. 10 (KANSAS CITY) W. T. KEMPER. District No. 11 (DALLAS) JOSEPH H. FROST. CHESTER MORRILL, Secretary District No. 12 (SAN FRANCISCO)__M. A. ARNOLD. WALTER WYATT, Counsel E. A. GOLDENWEISER, Economist JOHN H. WILLIAMS, Associate Economist W. RANDOLPH BURGESS, Manager of Account WALTER LICHTENSTEIN, Secretary Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SENIOR OFFICERS OF FEDERAL RESERVE BANKS Federal Reserve Chairman and Federal Bank of— Reserve Agent President First Vice President Vice President Boston F. H. Curtiss.. R. A. Young.. W. W. Paddock.. W. Willett.i New York.. G. L. Harrison. Allan Sproul W. R. Burgess. L. R. Rounds. L. F. Sailer. W. S. Logan. J. H. Williams. C. H. Coe. Philadelphia.. R. L. Austin. J. S. Sinclair.... F. J. Drinnen... C. A. Mcllhenny.2 W. J. Davis. Cleveland E. S. Burke, Jr.. M. J. Fleming.. F. J. Zurlinden_. H. F. Strater. W. F. Taylor.i Richmond F. A. Delano.... Hugh Leach R. H. Broaddus. J. S. Walden, Jr. G. H. Keesee.i Atlanta.. H. W. Martin. Oscar Newton.. R. S. Parker.. H. F. Conniff. M. W. Bell.i Chicago.. G. J. Schaller.. H. P. Preston.. C. R. McKay. J. H. Dillard. W. H. Snyder.2 St. Louis W. McC. Martin. O. M. Attebery. J. S. Wood. J. G. McConkey. Minneapolis W. B. Geery J. N. Peyton Harry Yaeger. H. I. Ziemer.2 Kansas City J. J. Thomas G. H. Hamilton... C. A. Worthington.. J. W. Helm.2 Dallas C. C. Walsh B. A. McKinney.. R. R. Gilbert R. B. Coleman.2 San Francisco W. A. Day. Ira Clerk W. M. Hale. C. E. Earhart.i 1 Cashier. 2 Also cashier. 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 B. J. Lazar. Denver branch J. E. Olson. Pittsburgh branch T. C. Griggs. Oklahoma City branch C. E. Daniel. Richmond: Omaha branch L. H. Earhart. Baltimore branch _ W. R. Milford 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. _ G. S. Vardeman, Jr. 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 PAGE Review of the month—Recent business and credit developments 407 Legislation affecting Reserve Bank of New Zealand 413 National summary of business conditions 415-416 Summary of financial and business statistics 418 Law department: Rulings of the Board: Payment of interest after maturity on time certificates of deposit renewed within ten days after maturity 419 Maximum rate of interest payable on time certificate of deposit callable by bank on 30 days' written notice 419 Stock certificate of State member bank representing stock of corporation holding bank premises 419 Renewal or extension of loans made to executive officers of member banks prior to June 16, 1933__ 420 Interpretations of Regulation U 420 Amendment to Federal income tax regulations 421 Discussion of questions arising under regulations of the Comptroller of the Currency governing the purchase of investment securities 421 Text of act relating to taxation of capital investment of Reconstruction Finance Corporation in banks,_ 423 Text of act amending Securities Exchange Act 424 Annual report of Bank for International Settlements 427-465 Financial, industrial, and commercial statistics: Member bank reserves, Reserve bank credit, and related items 466 Federal Reserve bank statistics 467—469 Member bank reserve balances 470 Money in circulation 471 Gold stock and gold movements 472 All banks in the United States 473 All member banks 474-475 Reporting member banks in leading cities 476-479 Banks suspended and placed in liquidation or receivership; bank debits; Postal Savings System 480 Acceptances, commercial paper, and brokers' borrowings 481 Federal Reserve bank discount rates 482 Money rates and bond yields 483 Security markets 484 Treasury finance 485 Governmental corporations and credit agencies 486—487 Production, employment, and trade 488-494 Wholesale prices 495 International financial statistics: Gold reserves of central banks and governments 496 Gold production 497 Gold movements 497-499 Central banks 500-503 Bank for International Settlements 503 Commercial banks 504 Discount rates of central banks 505 Money rates 505 Foreign exchange rates 506 Price movements: Wholesale prices 507 Retail food prices and cost of living 508 Security prices 508 IV Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN VOL. 22 JUNE 1936 No. 6 REVIEW OF THE MONTH have been reduced during the last four years but are still at a relatively high level, while Business activity, which after a rapid adstocks of wheat have been reduced to about vance during the second half of 1935 had the level prevailing prior to 1929. Prelimideclined somewhat in the nary estimates by the Department of Agricul- Recent business first quarter of 1936, reture indicate a somewhat larger wheat crop sained most of this decline this year than in the three preceding years, in April, and incomplete when crops were unusually small. The supfigures for May indicate that the April level ply of hogs on farms, which was exceptionwas maintained. For the first five months of ally small a year ago, has shown some inthis year business taken as a whole was subcrease during the past year. stantially larger than in the corresponding Wholesale commodity prices, which had period of any of the four preceding years, advanced considerably during 1933 and 1934 and many types of activity were at the highand slightly in 1935, have declined somewhat est levels since early in 1930. this year, reflecting reductions in prices of The most marked increases in production farm products and foods to the lowest levels during the past year, as in other recent years, since the end of 1934. The principal dehave been in the durable goods industries. creases were in livestock, grains, and their Output of durable goods, however, is still far manufactures. Prices of other commodities below pre-depression levels, owing largely as a group have shown relatively little change to the lag of recovery in construction activity. in the past two and a half years. Retail food In the past year there has been an increase in prices and the cost of living have been about construction, reflecting larger expenditures the same as they were a year ago. for residential, industrial, and commercial Profits of large industrial corporations inbuilding as well as increased outlays for pubcreased sharply in the last half of 1935 and, licly financed projects. although somewhat smaller in the first quar- Increased output has been accompanied by ter of 1936, according to preliminary rea growth in the number employed and, reports, they continued at a higher level than flecting principally an increase in the averin any other quarter since 1930. age number of hours worked, by a somewhat Security prices in the early months of the larger growth in pay rolls. Unemployment year continued the advance that began in has remained large, however, and there has the spring of 1935. There were substantial been relatively little change in the total numdeclines in lower grade bonds beginning in ber of persons receiving relief or employed on March and in stocks beginning in April, folworks projects financed by public funds. lowed by some recovery in May. Security Agricultural income, which had increased prices in general have continued above the considerably in the past three years, has highest levels of 1935. New security flotashown a further growth this year, reflecting tions have increased further and during the larger income from the sale of farm products first five months of this year were larger in offset in part by a decline in Governmental amount than in any period of similar length rental and benefit payments. Stocks of cotton in recent years. Most of the flotations con- 407 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

408 FEDERAL RESERVE BULLETIN JUNE 1936 tinue to be for refunding, and although the France and substantial amounts also came amount of corporate issues to raise new capi- from Holland. tal has increased, it is still small compared The course of business activity in recent with years prior to 1932. years is summarized in the following table: Money rates have continued at low levels. Bank loans and investments have increased BUSINESS CONDITIONS [Index numbers, 1923-1925 average=100] further, the growth since the turn of the year being for the most part in investments—both Construc- Depart- Indus- tion Factory Factory ment Wholein Government and in other obligations. trial contracts employ- pay store sale produc- awarded ment rolls sales prices i Loans for commercial, industrial, and agri- tion (value) (value) cultural purposes have also shown an in- 1929 119 117 105 109 111 95 crease, which was in excess of the usual sea- 1932 64 28 64 46 69 65 sonal amount. Notwithstanding the increase 1935: Jan.-Mar 89 27 82 68 77 79 in loans and investments, bank deposits Apr.-June__ _ 86 28 81 68 76 80 July-Sept.... 88 39 81 70 80 80 showed little further growth in the first four Oct.-Dec 99 58 85 76 81 81 1936: months of the year, reflecting a building up Jan.-Mar 95 53 84 74 82 80 Apr 100 47 85 77 81 80 of the Treasury's working balance. Within recent weeks, however, deposits at banks in i 1926=100; index of Bureau of Labor Statistics. NOTE.—Figures for periods of less than a year adjusted for seasonal leading cities have risen to new high levels. variation, except the figures for wholesale prices. Country bank deposits, notwithstanding sub- The volume of industrial production instantial increases in recent years, continue creased substantially in the second half of to be much smaller than in pre-depression Industrial 1935> and the average for the years. production final quarter of that year was Fluctuations in member bank reserves 99 percent of the 1923-1925 since the turn of the year have reflected average, the highest level of the recovery principally changes in Treasury balances at period. In the first quarter of 1936 output the Reserve banks, which, in anticipation of showed little change, although it usually inheavy disbursements, have been built up to creases at this season and, consequently, the an unusually large volume by new public debt Board's seasonally adjusted index declined. issues. Variations in member bank reserves The average for the first quarter was 95 perand the factors affecting them are shown in cent. In April the production index rose to the chart on page 417 of this BULLETIN. 100 percent and incomplete figures indicate Excess reserves, which continued at close to that this level was maintained in May. This $3,000,000,000 in the first ten weeks of the compares with a low average of 64 percent year, were reduced by Treasury operations to for the year 1932 and a high level of 119 per- $2,300,000,000 in the last half of March but cent for 1929. increased to about $2,900,000,000 in the latter The expansion in activity in the last quarpart of May. The increase during May re- ter of 1935 represented primarily increased flected large gold imports, which totalled production of automobiles, machinery, steel, $160,000,000 in that month, as well as Treas- tires, and glass. Output of automobiles and ury disbursements from accumulated bal- allied products was unusually large for the ances. The gold movement continued in season, reflecting in part an early introduc- June and during the first week an additional tion of new models. This higher level was $160,000,000 of gold was received in this not sustained in the first two months of 1936 country or reported as engaged for shipment but has since been restored. from abroad. Most of the gold came from The most marked increases in manufac- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1936 FEDERAL RESERVE BULLETIN 409 turing output during the past year and also crease in recent years has been more gradual. since the early part of 1933 have been in In recent months activity at tobacco factories, industries producing durable goods, as is shoe factories, and petroleum refineries has shown on the accompanying chart. The been at a higher level than in any previous figures are adjusted for seasonal variation year, while activity at meat-packing estaband are in terms of points in the index of lishments and flour mills has been at a lower total manufacturing production. level than in pre-depression years. Output of some durable manufactures, in- Accompanying the growth in production cluding automobiles, agricultural imple- during the past year there has been a slight increase in employment and INDEX OF MANUFACTURING PRODUCTION Employment and mewhat larger growth ADJUSTED FOR SEASONAL VARIATION, 1923-25 AVERAGE FOR TOTAL* 100 a SO POINTS IN TOTAL INDE) POINTS IN TOTAL INDEX pay rolls . e . 130 130 m pay rolls. These increases have been general throughout industry and trade. In certain industries local shortages of highly skilled labor have been reported recently, reflecting increased activity in those industries, population shifts, and the fact that the number of workers trained during the long period of depression was small. The principal factor accounting for the larger rise in pay rolls than in employment during the past year has been an increase in the average number of hours worked by those employed. Some lengthening of the working week is usual when activity is expanding, but the increase since the middle of 1935 has been 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 larger than usual in some industries. Inments, and certain other types of machinery, creases in pay rolls of the railroads and of has advanced to about the level of the years bituminous coal mines have been larger than before 1929. Increases in the output of durin most other industries, reflecting in part able goods used in the construction, railroad, advances in wage rates. Changes in employand public utility industries, however, have ment and pay rolls in four major groups of been smaller, and consequently output of durindustries during the past year are shown in able goods as a whole continues at a lower the following table: level than in the middle 1920's. Volume EMPLOYMENT AND PAY ROLLS TN FOUR GROUPS OF of steel production, which depends on de- INDUSTRIES, JANUARY-APRIL 1936 mand from a wide variety of sources, has Change from year ago increased from 32 percent of the 1923-1925 (in percent) average in 1932 to 90 percent in the first four Employ- Pay months of 1936, a level that is still consider- ment rolls ably lower than in 1929 and somewhat lower Factories—total _ _ . _ - . .. +3 +9 than that of several earlier years. Durable group. . _____ _ _ _ _ _ +8 + 17 • Production of nondurable manufactures Nondurable group.__ __ _ _____ -1 +2 declined much less during the depression Mines _ ._ ______ _ _ _ _ +1 + 12 Railroads +5 + 15 than output of durable goods and the in-Public utilities _ __ +2 +5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

410 FEDERAL RESERVE BULLETIN JUNE 1936 The average number of workers at fac- ing chart. The figures are adjusted for seatories in the first four months of the year sonal variation. was 3 percent larger than a year earlier and Residential building showed a moderate pay rolls were 9 percent larger, reflecting but widespread increase during the first half chiefly further increases in activity in the of 1935 and the level reached in the middle durable goods industries, particularly in in- of the year has been maintained since that dustries producing machinery, steel, and lum- time. House rents have continued to advance ber products and at railroad repair shops. and mortgage money has been available at Employment and pay rolls in industries pro- lower rates. ducing nondurable manufactures were at about the same level as last year. Changes CONSTRUCTION CONTRACTS AWARDED in employment in the more important manu- 700 700 facturing industries are shown in the accompanying table. 600 Total FACTORY EMPLOYMENT BY INDUSTRIAL GROUPS, C/V) 500 JANUARY-APRIL 1936 Change from a 400 \ 400 year ago All Other r/VK V 1 V M \ nu A m ve b r e a r g e of Per- 300 • \ A 300 employees cent * 1 (estimated) V^Residentic 200 I V 200 LJ Total . +207,000 +3 Durable group +256, 000 +8 \ Transportation equipment, other than auto- 100 \-/ 100 mobiles + 17,000 + 17 Machinery +97, 000 + 13 Railroad repair shops +28,000 + 11 Nonferrous metals and products +21,000 +9 0 0 Lumber and products +40, 000 +9 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 Iron and steel and products +54, 000 +9 Stone, clay, and glass products +11,000 +6 Three-month moving averages of F. W. Dodge data for Automobiles and parts -12,000 -2 value of contracts awarded in 37 Eastern States, adjusted for seasonal variation. Non iurable group* -48,000 -1 Paper and printing +9,000 +2 The wide fluctuations in contracts for Textile wearing apparel +7, 000 + 1 Petroleum refining 0 ) nonresidential construction during recent Chemical group, except petroleum refining. -1,000 () Food products -14,000 -2 months, as in 1933 and 1934, have reflected Textile fabrics -27, 000 -3 Leather and products -9, 000 -3 largely changes in the volume of public work. Tobacco products -3, 000 -4 Rubber products -6, 000 -5 The volume of contracts for factory, com- 1 Includes a few miscellaneous industries not shown separately. mercial, and other privately financed work 2 Less than one-half of 1 percent change. has increased recently, and in the first four The amount of construction work this year months of 1936 was considerably larger than has been somewhat larger than in the cor- in other recent years. responding period of any of the Reflecting larger incomes in both rural and Construction four preceding years, but the urban areas, the distribution of commodities current level, as indicated by the award of to consumers has increased construction contracts in recent months, is Domestic trade in volume during the past still only two-fifths of the level in the peak year and in March and April was at the highyears. Recent changes in the volume of con- est level of the recovery period. tracts awarded for residential and other types Recovery in department store sales in the of construction are shown in the accompany- past year has been evenly distributed Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1936 FEDERAL RESERVE BULLETIN 411 throughout the country. In the two preced- quarter indicate somewhat smaller profits ing years the expansion in sales in New Eng- than in the last quarter of 1935, but they land and in the Middle Atlantic States had were still about 50 percent above those for been smaller than in the rest of the country. the first quarter of 1935. Sales by wholesalers were considerably Industries in which these large corporalarger in the first four months of 1936 than tions as a group reported the most marked a year earlier, with the most marked in- increases in earnings in 1936 as compared creases in sales of such durable commodities with 1935 include petroleum, machinery and as machinery, hardware, and lumber. tools, railroad equipment and automobiles. Freight-car loadings, which had increased Substantial increases also occurred in indusin the last half of 1935, were sustained in the tries producing electrical equipment, chemifirst part of 1936. cals and drugs, non-ferrous metals, building Value of exports from the United States materials and supplies, and office equipment. in the first four months of 1936 was 12 per- Railroads as a group reported a loss during cent larger than in the cor-the first three months of 1936 but the deficit Foreign trade responding period a year ago, was about one-third smaller than in the corand imports were 17 percent greater. For responding period of the preceding year. the four months imports exceeded exports The profits of public utility companies showed by $12,000,000, whereas in the same period a moderate increase during the first quarter of 1935 exports exceeded imports by $21,- of 1936 over the same quarter of 1935. 000,000. Stock prices, which had advanced almost Exports for the first four months totaled without interruption for 12 months, declined $769,000,000, an amount larger than in the sharply in April to about the corresponding period of any of the past four Security markets ^^ j ^ j reache( the en( of years but somewhat less than half the aver- 1935. There were increases in prices in May, age for that period from 1925 to 1929. The but volume of trading was smaller than in higher level of exports has reflected chiefly any month since early in 1935. larger exports of machinery, automobiles, Volume of trading in bonds on the exand cotton, partly offset in the total by de-changes broadened markedly towards the end clines in exports of animal products and of 1935. In January 1936 trading, especially copper. in the more speculative issues, was heavier Value of imports showed a general rise in than in any month since 1920. In succeed- 1935, and the increase continued in the firsting months when prices of lower-grade bonds four months of 1936. For the four months reached a peak and then declined, trading imports totaled $781,000,000, more than became much lighter. Yields on high-grade twice as much as the low level in the corre- corporate bonds have continued to move sponding period of 1933, but little more than gradually lower since January and Moody's half of the average for the years from 1925 Aaa bond yield average at the end of May to 1929. was 3.56 percent as compared with the 1935 Profits of large industrial corporations low of 3.68 percent in July. The steady deduring the last quarter of 1935 and the first cline of lower-grade bond yields since April quarter of 1936 were larger 1935 continued into February of this year, Corporate profits _ but was reversed in March and April. Notthan in a ny other six month period since 1930. Reflecting in part the withstanding the decline in prices in the slight industrial recession in the early months course of these two months, Moody's average of this year, preliminary reports for the first of Baa bond yields at the end of April was Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

412 FEDERAL RESERVE BULLETIN JUNE 1936 still below the 1935 lows established at the those months exceeded flotations of last year-end, and price movements in May July, the peak month of 1935. Corporate though irregular resulted in further declines securities issued in May declined to $300,in yields. 000,000, in part as a consequence of the de- Yields on outstanding long-term Treasury cline in bond prices during March and April. bonds have continued to decline practically Railroad issues in the first five months of this without interruption since last October. By year showed the largest increase over like the first week of March bonds which had de- periods of last year; there were also increases clined in price during August and September in most other industries. Public utilities, of last year had fully regained their losses. railroads, steel, copper and oil corporations After further advances in prices, the average accounted for more than four-fifths of the yield on long-term Treasury bonds reached a total volume of issues. new low level of 2.47 percent in May. About 85 percent of the corporate issues Capital issues have continued to appear in were made for refunding. A number of the large volume, chiefly to refund outstanding new issues, chiefly industrials, carried condebt. The period of renewed version privileges. Issues of common stock, Capital issues activity in the capital marke t which were made chiefly for the purpose of which commenced last spring has extended raising new capital, as well as the proceeds over more than a year. Exceptionally large of corporate bond and other issues not apamounts were offered in March and April plied to refunding, although remaining at of this year but in May flotations were little low levels, showed an appreciable increase larger than in January and February. A over earlier months. The amount of new new development within the past nine months capital raised by corporations from January has been the underwriting of a considerable to May was reported at $300,000,000 as comnumber of small common stock issues. pared with $250,000,000 and $140,000,000 in The amount of corporate and other issues the two preceding five-month periods. It apto obtain new capital during the first five pears that more than half of these amounts months of 1936, totaling $650,000,000, was was acquired for improvements, equipment, somewhat smaller than in the last five months working capital, and similar purposes, as disof 1935. Refunding issues of about $2,300,- tinguished from the repayment of bank loans 000,000 during the first five months of 1938 or additions to funds for investment. were greater than in any five-month period in In recent months the Treasury has also of- 1935 and much greater than the maximum fered a substantial amount of securities to for any five months in earlier years. State raise new funds and through and municipal borrowing, which had in- Treasury these operations has accumucreased in 1935, has shown no further in- financing x crease in 1936. Publicly offered issues by lated an unusually large work- Federal Government agencies, although ing balance. Treasury bonds and notes israther large in April, have been much less sued in March provided about $900,000,000 during the first five months of 1936 than a of new funds in addition to refunding Treasyear ago. ury bills maturing March 16 and Treasury Flotations of domestic corporate issues, notes maturing April 15, totaling $1,000,which totaled about $2,000,000,000 in the first 000,000. Beginning with the first week of five months of this year, were exceptionally May the Treasury has raised $50,000,000 of large in March and April, and in each of new funds weekly through sales of bills. On June 1 about $600,000,000 of 15-18 year 2% Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1936 FEDERAL RESERVE BULLETIN 413 percent Treasury bonds and $400,000,000 of the same body corporate as at the time of its 5-year 1% percent Treasury notes were of- establishment. The new law, entitled "Refered for cash subscription, and an additional serve Bank of New Zealand Amendment Act, amount of the same issues was offered in ex- 1936," is retroactive to April 1, 1936, and is change for $1,050,000,000 of Treasury notes deemed part of the principal Act of 1933 unmaturing in June and August. These offer- der which the Reserve Bank was established. ings were fully subscribed; most of the ex- Shareholders of the Reserve Bank are to change subscriptions were for the new bonds. be reimbursed in either cash or Government securities at the rate of 6 pounds 5 shillings for each 5-pound share, and the nominal Appointment of First Vice President of the Federal amount of the capital, £500,000, is to be Reserve Bank of Philadelphia transferred to the General Reserve Fund into which the Government had originally paid Effective June 1, 1936, Frank J. Drinnen £1,000,000. who had served as a Federal Reserve Ex- The statement of the bank's objectives is aminer for the Board of Governors of the given in the following paragraph of section Federal Reserve System since November 29, 10: 1919, was appointed First Vice President of the Federal Reserve Bank of Philadelphia. It shall be the general function of the Reserve Bank, within the limits of its powers, to give effect as far as may be to the monetary policy of the Gov- Rearrangement of Bulletin Tables ernment, as communicated to it from time to time by the Minister of Finance. For this purpose, and to Beginning with this issue of the BULLETIN the end that the economic and social welfare of New the statistical tables appear in revised form Zealand may be promoted and maintained, the Bank and in rearranged order. It has been the shall regulate and control credit and currency in New practice to group general tables in an earlier Zealand, the transfer of moneys to or from New Zealpart of the BULLETIN and to present more de- and, and the disposal of moneys that are derived from the sale of any New Zealand products and for the tailed statistics by Federal Reserve districts time being are held overseas. and other classifications toward the end of the BULLETIN. This arrangement has proved Present members of the Board of Directo be somewhat confusing, and the two sec- tors, other than the Governor, the Deputy tions have now been consolidated so that all Governor, and the Secretary to the Treasury, statistics dealing with a given subject matter will hold office subject to the pleasure of the appear in one place in the BULLETIN. One Governor-General in Council but will in any summary table, however, presenting an ab- case retire according to a scheduled order bestract of the most important banking and ginning in the current year, and their succesbusiness figures, is given in the earlier part sors will be appointed by the Governor-Genof the BULLETIN immediately after the na- eral in Council, to hold office during his tional summary of business conditions. pleasure. The powers of the bank to extend credit to the New Zealand Government have been RESERVE BANK OF NEW ZEALAND enlarged. Accommodation may now be The Reserve Bank of New Zealand, which granted to the Treasury up to the full amount began operations on August 1, 1934, with all of the revenue or estimated revenue for the its shares privately held, became a Govern- year, instead of half the amount as under the ment institution under legislation approved old law. Credit in the form of overdrafts may on April 8, 1936. The bank continues to be be extended to the Government and to official Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

414 FEDERAL RESERVE BULLETIN JUNE 1936 organizations to finance the purchase and Suspension of the bank's obligation to remarketing of New Zealand produce, with no deem its notes in exchange on London may stated limit to the total of such overdrafts. be ordered by the Minister of Finance at any The bank is further authorized to underwrite time. Notwithstanding such suspension, the Government loans. Securities which the bank's notes shall continue to be legal tender. bank may buy and sell, formerly limited to Formerly there was no specific provision for those of the Governments of New Zealand suspension of the redemption obligation, and and the United Kingdom, now include securi- notes remained legal tender only so long as ties guaranteed by those Governments, and the bank redeemed them in sterling exchange. the former limitation upon holdings of such The Governor of the bank, acting with the securities is now abolished. authority of the Minister of Finance, may in- A former limit on the volume of the bank's crease or decrease the requirements as to holding of paper of not more than six months' balances to be maintained by all other banks maturity arising out of transactions involv- with the Reserve Bank, but these requireing livestock and primary products is with- ments shall not be reduced below the amount drawn. fixed in the principal Act. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

415 JUNE 1936 FEDERAL RESERVE BULLETIN NATIONAL SUMMARY OF BUSINESS CONDITIONS [Compiled May 26 and released for publication May 28] Industrial production increased in April, with the most marked advances at steel mills reflecting principally larger output of steel and at plants producing machinery, autoand of automobiles. Employment and paymobiles, and building materials. There was rolls in the durable goods industries showed an increase in employment at rubber tire advances. factories, which in March had been affected Production and employment.—Volume of by a strike, while at woolen mills employindustrial production, as measured by thement declined. Board's seasonally adjusted index, increased from 93 percent of the 1923-1925 average in March to 100 percent in April. The average FACTC)RYENIPLOYHAENT 120 PERCI PER CENT 140 140 INDUSTRIAL PRODUCTION 100 V 100 130 130 A, L 90 \ 90 120 120 \ /\_ rs/ 110 \ 110 80 80 / 100 A V 100 70 V J 70 90 90 V' A V / 80 60.. 60 80 v 50 V 70 70 1929 1930 1.931 1932 1933 1934 1935 1936 60 V 60 Monthly index of number employed, adjusted for seasonal variation, 1923-1925 average = 100. 50 50 1929 1930 1931 1932 1933 1934 1935 1936 Value of construction contracts awarded, Monthly index of physical volume of production, adjusted for seasonal variation, 1923-1925 average = 100. according to figures of the F. W. Dodge Corporation, increased in April by somewhat rate of production at" steel mills in April more than the usual seasonal amount. Conwas 69 percent of capacity as compared with tracts for residential building were in consid- 59 percent for the preceding month. At erably larger volume, and privately financed automobile factories output amounted to projects other than residential continued to 503,000 passenger cars and trucks and, exincrease. cept for the spring months of 1929, was Distribution.—Retail trade showed a sealarger than in any previous month. In the sonal increase in April, following a considerfirst three weeks of May activity in both the able advance in March. Department store steel and automobile industries was mainsales rose by less than the usual seasonal tained at about the levels reported for April. amount, while at variety stores and mail- Output of nondurable manufactures in April order houses there were further increases. was slightly larger than in March, due chiefly Freight-car loadings increased from March to increases at cotton textile mills, meatpacking establishments, and tobacco fac- to April. tories. Activity at woolen and silk mills de- Commodity prices.—Wholesale prices of clined. Bituminous coal production showed commodities showed little change during little change from March to April, although a April and declined during the early part of considerable decrease is usual at this season, May, reflecting decreases in the prices of while at anthracite mines there was a sharp farm products and foods, while prices of other rise from the low level of March. Output commodities as a group continued to show of crude petroleum continued to increase. little change. Factory employment and pay rolls were Bank credit.—Excess reserves of member larger in the middle of April than a month banks have increased steadily since the latter earlier. Increases in the number of workers part of March and by May 20 amounted to were general in the durable goods industries, $2,860,000,000. The growth was due in April Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

416 FEDERAL RESERVE BULLETIN JUNE 1936 to Treasury disbursements from accumulated have increased further, while holdings of balances and in May to continued disburse- other securities and loans to customers have ments together with substantial imports of remained at the levels reached early in April. gold. Loans to brokers and dealers in securities, Treasury disbursements and gold imports which increased considerably in March and have also been reflected in a sharp increase April, declined in the first half of May. BILLIONS OF DOLLARS 120 MEMBER BANK CREDIT 23 110 WHOLESALE PRICES 110 Dema A n d d ju s D te e d p os \ i f ts-Af V Total Loans r 2 2 1 2 100 s—/ V 100 J 20 90 90 i • .Govt. Obligations - 80 Other 80 Balances of (Lirect and Guaranteed)^ ommodities jr Banks in U. S. y, f 70 70 [Foods Ti'me DeDosits 60 60 to Customers 50 ity* ^ 50 " 6tiierSecunties * xJ tomers 46 Farm Products 40 Street Loons ial. of Foreign Banl^\^f>>^ 30 '34 1929 1930 1931 1932 1933 1934 1935 1936 Wednesday figures for reporting member banks in 101 lead- Indexes compiled by the United States Bureau of Labor ing cities, September 5, 1934 to May 27, 1936. Loans on real Statistics, 1926 = 100. By months, 1929 to 1931; by weeks, estate, loans to banks, and acceptances and commercial paper 1932 to date. Latest figure is for week ending May 30, 1936. bought included in total loans and investments but not shown separately. of deposits at reporting member banks in The rate charged on calj loans with stock leading cities since the beginning of April. exchange collateral was raised on May 11 by Adjusted demand deposits at these banks New York City banks from three-fourths of increased to a new high level and time de- 1 percent to 1 percent and that on time loans posits rose to the highest figure in three from 1 percent to 1^4 percent. Rates on years. Holdings of United States Govern-other open-market loans have continued at ment obligations by the reporting banks low levels. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JCNE 1936 FEDERAL RESERVE BULLETIN 417 MEMBER BANK RESERVES AND RELATED ITEMS Wednesday figures BILLIONS OF DOLLARS BILLIONS OF DOLLARS 11 11 10 / 10 GOLD STOCK I I 6 6 MONEY IN CIR(DULAT1ON I > 5 5 i - :x- 4 4 \^ .A 3 3 2 AJ / "— RESERVE BANK 2 ;REDIT 1 V _/ 1 1 TREASURE UAbH AIMU DEPOSITS WITH F.R.BANKS 4 0 0 1 1930 1931 1932 1933 1934 1935 1936 7 7 6 6 MEMBER BANK 5 RESERVE BALANCES 5 4 4 f EXCESS RESERVESxK; 3 3 2 2 1 1 0 0 1930 1931 1932 1933 1934 1935 1936 Latest figures for May 27, 1936. See table on page 466. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

418 FEDERAL RESERVE BULLETIN JUNE 1936 SUMMARY OF FINANCIAL AND BUSINESS STATISTICS Average for year 1935 1936 1929 1932 1933 1934 1935 Apr. May Dec. Jan. Feb. Mar. Apr. May RESERVE BANK CREDIT, MEMBER BANK RESERVES, AND RELATED ITEMS (Averages of daily figures; inmillions of dollars) Reserve bank credit—total 1,459 2,077 2,429 2,502 2,475 2,471 2,476 2,494 2,484 2,493 2,484 2,480 2,476 Bills discounted.. _ _ _ _ _ 952 521 283 36 7 6 7 6 6 8 6 6 5 Bills bought 241 71 83 25 5 5 5 5 5 5 5 5 4 U. S. Government securities 208 1,461 2, 052 2,432 2,431 2,431 2,434 2,430 2,430 2,430 2,430 2,430 2,430 Monetary gold stock 3,996 3,952 4,059 7,512 9,059 8,641 8,755 10,072 10,158 10,163 10,172 10, 202 10, 324 Treasury currency 2, 015 2,096 2,271 2,381 2,478 2,548 2,534 2,454 2, 486 2,495 2,502 2,503 2,495 Money in circulation ___ ___ _____ 4,476 5,328 5,576 5,403 5,585 5,500 5,507 5,897 5,757 5,779 5,857 5,892 5,918 Treasury cash and deposits with Federal Reserve banks 229 275 343 2,879 2,919 3,209 2,942 2, 869 3,058 2,981 3,278 3,384 3,133 Nonmember deposits and other accounts 406 407 497 438 507 514 537 539 533 584 603 608 606 Member bank reserve balances: Total 2,358 2,114 2,343 3,676 5,001 4,436 4,778 5,716 5,780 5,808 5,420 5,300 5,638 Excess (estimated) 43 256 528 1,564 2,469 2,026 2,297 2,983 3,033 3,038 2,653 2,510 P2, 800 REPORTING MEMBER BANKS (Averages of Wednesday figures; in millions of dollars) Total loans and investments 22, 599 19, 080 17, 505 18, 672 19, 997 19, 856 19, 814 20, 769 20, 928 21, 053 21, 445 21, 745 21, 832 Loans to brokers in New York City 1,405 337 591 815 820 785 844 921 923 901 995 1,008 973 Other loans on securities 6,251 4,508 3,343 2,711 2,301 2,340 2, 306 2,281 2.247 2,230 2,272 2,292 2,290 All other loans 9,231 6,578 5,222 4,965 4,907 4,958 4,933 4, 982 4,910 4,850 4,956 5,061 5,092 U. S. Government obligations: Direct 2,865 4,413 5,228 6,856 7,989 7,909 7,853 8,433 8,599 8,708 8,737 8,767 8,877 Fully guaranteed "325 928 783 787 1,131 1,155 1,194 1,247 1, 273 1,286 Other securities 2,847 3,245 3,121 «3,000 3,052 3,081 3,091 3,021 3,094 3,170 3,238 3,344 3,314 Reserves with Federal Reserve banks 1,725 1,673 1,822 2,875 4,024 3,462 3,820 4,694 4,773 4,782 4,363 4,180 4,577 Ca^h in vault 248 214 240 271 326 307 301 376 354 356 366 370 378 Balances with domestic banks 1,142 1,250 1,322 1,688 2,112 1,968 2,043 2,312 2,336 2,335 2,334 2,262 2,283 D T D i e e m p m o e a s n d it d e s p d o o e f s p i d t o s o s m i ( t e s e x — s c t l i a u c d d b j i u n a s n g t k e i s d n 3 ter _ b _ a nk)2 _ 2 6 , , ( 7 7 x 8 8 ) 8 7 5, 0 66 ) 6 4 2 , C 9 8 1 4 ) 2 6 2 4 3 0 , ,8 9 ) 1 3 4 7 1 4 4 2, , , 8 9 7 8 3 2 3 8 9 1 4 4 1 , , , 7 9 9 1 1 2 3 6 2 1 4 4 2, , , 9 7 3 7 5 7 0 8 3 1 4 5 3, , , 8 3 9 8 7 0 8 2 4 1 4 5 3 , , , 8 8 6 9 2 2 2 0 4 1 4 5 4 , , 8 0 6 9 6 4 3 4 7 1 4 5 3, , 9 6 8 2 4 8 3 9 1 1 4 5 3 , , 9 9 4 7 8 8 1 2 4 14 5 5 , , 3 4 0 7 7 5 1 7 1 Borrowings 674 2,727228 115 8 6 5 6 2 2 2 13 7 MONEY RATES AND BOND YIELDS (Averages of weekly figures;percent per annum) Commercial paper _ 5.85 2.73 1.72 1.02 .76 .75 .75 .75 .75 .75 .75 .75 .75 Stock exchange call loans 7.61 2.05 1.16 1.00 .56 .64 .25 .75 .75 .75 .75 .75 .93 U. S. Treasury bills .88 .52 .26 .14 .17 . 15 .09 .10 .08 .11 .10 .18 U S Treasury bonds, long term 3.60 3.66 3.31 3.10 2.70 2.64 2.61 2.73 2.68 2.62 2.54 2.51 2.50 Corporate high grade bonds (Moody's Aaa)__ 4.73 5.01 4.49 4.00 3.74 3.72 3.74 3.72 3.66 3.62 3.61 3.60 3.58 STOCK PRICES (Averages of weekly figures; index numbers, 19i3=100) 419 common stocks 190 48 63 72 78 | 58 73 95 100 106 109 109 101 CAPITAL ISSUES (Monthly basis; in millions of dollars) All issues—total 959 146 89 180 389 503 472 417 402 302 768 1,050 413 New 841 100 60 116 124 90 87 231 122 107 130 177 112 Refunding __ 118 46 29 64 265 413 384 186 280 195 637 873 302 Domestic corporate issues—total 781 54 32 41 189 156 127 168 266 195 595 658 305 New __ . 667 27 13 15 34 22 45 67 65 13 59 128 38 Refunding 115 27 18 26 155 134 82 101 201 181 536 530 267 BUSINESS INDEXES (Index numbers, adjusted for seasonal variation, 1923-25=100) Industrial production—total 119 64 76 79 90 86 85 104 98 94 93 p 100 (J) I M vl i a n n e u r f a a ls c tures -_ 1 11 1 5 9 6 71 3 8 7 2 5 8 7 6 8 9 9 1 0 8 87 6 8 89 4 1 1 0 0 1 4 1 9 03 7 1 9 10 1 9 9 5 3 P 1 9 0 9 5 I 1 ) Con R st e ru si c d t e io n n ti — al total - _______ 1 8 1 7 7 2 1 8 3 2 1 5 1 3 1 2 2 3 2 7 1 2 1 7 8 2 2 1 7 6 2 7 6 6 2 1 5 2 5 5 2 4 2 7 6 4 3 7 0 ( 1 ) All other 142 40 37 48 50 33 32 101 90 73 63 60 m Factory employment 105 64 69 79 82 82 81 86 85 84 84 85 n\ Factory pay rolls (unadjusted) _ 109 46 49 62 70 71 69 76 73 73 76 78 0) Freight car loadings 106 56 58 62 63 61 61 71 70 70 66 69 70 Department store sales 111 69 67 75 79 73 76 84 79 80 88 81 MERCHANDISE EXPORTS AND IMPORTS (Monthly basis;in millions of dollars) Exports including re-exports _ ._ 437 134 140 178 190 1 164 165 223 199 182 195 P193 C1) General imports 367 110 121 138 171 1 171 171 187 187 193 199 P202 0) COMMODITY PRICES (Index numbers) Wholesale prices (1926=100): All commodities _ 95 65 66 75 80 80 80 81 81 81 80 80 Farm products 105 48 51 65 79 80 81 78 78 80 77 77 Foods - ._ 100 61 61 71 84 85 84 86 84 83 80 80 § Other commodities.. 92 70 71 78 78 77 78 79 79 79 79 79 Retail food prices (1923-25 —100) 105 68 66 74 80 81 81 82 82 81 80 80 p Preliminary. «Part estimated. i Figures not available. 2 Includes time deposits of banks, domestic and foreign, 1929-1934. 3 Does not include time deposits 1929-1934. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

419 JONE 1936 FEDERAL RESERVE BULLETIN LAW DEPARTMENT Payment of interest after maturity on time certificates Maximum rate of interest payable on time certificate of deposit renewed within ten days after maturity of deposit callable by bank on 30 days' written notice The Board has recently considered the question whether, under the provisions of The Board has recently given considera- Regulation Q and section 19 of the Federal tion to the question of the maximum rate of Reserve Act, a member bank may pay inter- interest payable on a time certificate of deposit which provided that the principal est after maturity on a time certificate of amount thereof was payable to the order of deposit renewed within ten days after majthe depositor upon presentation and surrender turity. of the certificate after 6 months' written no- The terms of Regulation Q do not contain tice of withdrawal and which also provided a provision for the payment by a member that the certificate might be called for paybank of interest on a time deposit between ment by the bank at any time by giving 30 the date of maturity of the certificate repredays' notice thereof to the depositor. senting such deposit and the date of renewal Section (3) of the supplement to Regulaof such certificate. However, the first paration Q provides that no member bank shall graph of section 19 of the Federal Reserve pay interest accruing after January 1, 1936, Act authorizes the Board to define the terms at a rate in excess of 1 per cent per annum, ''demand deposits," "deposits payable on decompounded quarterly, on a time deposit mand/' and "time deposits," and to prescribe "having a maturity date less than 90 days such rules and regulations as it may deem after the date of deposit or payable upon necessary to effectuate the purposes of the written notice of less than 90 days." section. The Board expressed the view that a pro- Section 19 of the Federal Reserve Act provision authorizing the bank to call a time hibits the payment of interest on any deposit certificate of deposit for payment at any which is payable on demand and the question time by giving 30 days' written notice thereof arises whether this provision affects the to the depositor would cause the certificate payment of interest after maturity on a time to be "payable upon written notice of less than deposit which is renewed within ten days 90 days" within the meaning of section (3) after maturity. It is believed, however, that of the supplement to Regulation Q and, acthe payment of interest in such circumstances cordingly, the maximum rate of interest payis not prohibited by this provision of the law. able thereon would be 1 per cent per annum. If the deposit is withdrawn during the ten-In other words, when a certificate provides day period no interest may be paid thereon that it is payable upon a written notice by for any part of the period subsequent to ma-the depositor and also provides that the bank turity. Only by renewing the deposit as a may call the certificate by giving a written time deposit can the depositor obtain any in-notice to the depositor, the shorter period of terest after the maturity of the original de- notice controls in determining the maximum posit. This does not appear to involve the rate of interest payable by a member bank evils inherent in the payment of interest on on the certificate. demand balances which the statute was apparently designed to eliminate. After considering all of the attendant cir- Stock certificate of State member bank representing cumstances, the Board has decided that it will stock of corporation holding bank premises offer no objection to the payment by a mem- The Board recently received an inquiry inber bank of interest on a time certificate of volving interpretation of the exception condeposit at a rate not exceeding the applicable tained in the following provisions of the maximum rate prescribed in Regulation Q twentieth paragraph of section 9 of the Fedfor the period between the maturity date of eral Reserve Act: the certificate representing such deposit and the date of renewal thereof, provided such After the date of the enactment of the Banking certificate is renewed within ten days after Act of 1935, no certificate evidencing the stock of maturity. any State member bank shall bear any statement purporting to represent the stock of any other cor- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

420 FEDERAL RESERVE BULLETIN JUNE 1936 poration, except * * * a corporation engaged on reasonable effort to reduce his obligation," June 16, 1934, in holding the bank premises of such the board of directors must also be satisfied member bank, * * *. that the extension or renewal "is in the best The question was whether such exception is interest of the bank." The language of the limited to corporations engaged solely in hold- provision in question indicates that the priing the bank premises of the affiliated bank. mary responsibility for the extension or re- Prior to the enactment of the Banking Act newal of such a loan is placed by law upon of 1935, such statutory provisions read as the board of directors of the member bank follows: involved and that in reaching a determination in the matter the board of directors After one year from the date of the enactment of the Banking Act of 1933, no certificate representing should consider all the facts and circumthe stock of any State member bank shall represent stances in the particular case. the stock of any other corporation, except * * * a The Board stated that the fact that a loan corporation existing on the date this paragraph takes of the kind under discussion is secured by effect engaged solely in holding the bank premises of such State member bank, * * *. marketable collateral in an amount sufficient to liquidate the loan would not of itself show In response to such inquiry, the Board exthat an extension of the loan was not in conpressed the opinion that, in view of the legisformity with the requirements of section lative history of the provisions of the Bank- 22 (g) but that all of the facts of the particuing Act of 1935 amending the above-quoted lar case would have to be given consideration provisions of section 9 of the Federal Reserve in determining this question. The fact that a Act and the corresponding provisions of secpart of the loan had been charged off and the tion 5139 of the Revised Statutes of the marketable collateral would liquidate the re- United States relating to national banks, such mainder would not change such conclusion. exception, in its present form, can not prop- Of course, in any case where it appears that erly be interpreted as being limited to cora loan may have been extended without a porations engaged solely in holding the bank proper regard for the requirements of the premises of the affiliated bank. law, it would be desirable for the bank examiner, in connection with his examination of the bank, to give particular consideration Renewal or extension of loans made to executive to all the facts involved in the case in order officers of member banks prior to June 16, 1933 to determine whether or not the directors The Board has recently received an inquiry may have acted arbitrarily in extending the as to whether a loan made to an executive loan. officer of a member bank prior to June 16, 1933, which has been extended by resolution of the board of directors of such bank, even Interpretations of Regulation U though secured by marketable collateral suffi- The Board has recently been asked to rule cient to liquidate the loan, can be considered on the following questions under Regulation to have been properly extended in view of the U, which relates to loans by banks for the requirement of section 22 (g) of the Federal purpose of purchasing or carrying stocks Reserve Act that the board of directors must registered on a national securities exchange: be satisfied that the officer has "made reason- 1. Whether, in subsection (b) of section 2, able effort to reduce his obligation/' Advice which exempts "any loan to any person whose was also requested on the same question with total indebtedness to the bank at the date of the additional facts that a part of the loan and including such loan does not exceed had been charged off and the marketable collateral to the loan is sufficient to liquidate the $1,000," the term "total indebtedness" means remainder. the total of all loans regardless of their pur- In replying to the inquiry, the Board ob- poses or the total of all loans for the purpose served that the law requires that the board of purchasing or carrying stocks registered of directors of a member bank shall be satis- on a national securities exchange ? fied as to the matters prescribed by the law In response to this inquiry the Board stated before extending or renewing a loan of the that the term "total indebtedness" means kind under discussion and tlvit in addition total indebtedness for all purposes and is not to determining whether the officer "has made restricted to total indebtedness for the pur- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1936 FEDERAL RESERVE BULLETIN 421 pose of purchasing or carrying stocks regis- "Where banks or other corporations which are tered on a national securities exchange. subject to supervision by Federal authorities (or by State authorities maintaining substantially equiva- 2. The Board has also been asked, under lent standards) in obedience to the specific orders of subsection (a) of section 3 if the statement such supervisory officers charge off debts in whole or signed by an officer, upon which a bank may in part, such debts shall be conclusively presumed, rely in determining whether or not a loan is for income tax purposes, to be worthless or recoverable only in part, as the case may be, but in order that for the purpose specified in section 1 or for any amount of the charge-off may be allowed as a any of the purposes specified in section 2, deduction for any taxable year it must be shown that must be based only on facts related to the the charge-off took place within such taxable year." officer by the prospective borrower or if it This document is issued under the authority prescribed by section 62 of the Revenue Act of 1934, and may be based also on facts within the knowlsection 62 of the Revenue Act of 1932. edge of the officer not specifically stated by GUY T. HELVERING, the borrower. Commissioner of Internal Revenue. In response to this inquiry the Board ruled Approved: April 3, 1936. that the officer's statement might be based not WAYNE C. TAYLOR, only on statements or representations made Acting Secretary of the Treasury. to him by the prospective borrower but also Last paragraph of Article 23(k)-l of Regulations upon any other information which the officer 86 (relating to Revenue Act of 1934), as it existed had obtained from any source. prior to above amendment of April 3, 1936: 3. The Board has also been asked whether "Federal or State authorities incident to the regulation of banks and certain other corporations may in subsection (e) of section 3 permitting a require that debts be charged off in whole or in part. bank to accept the transfer of a loan from If, in any such case, the basis of the requirement is "another lender," the term "another lender" the worthlessness or partial recoverability of the refers solely to a bank or includes any other debt, as the case may be, such charging off will, for income tax purposes, be considered prima facie evilender. dence of worthlessness; but if the charging off is due In response to this question the Board ruled to market fluctuations, or if no reasonable attempt that the term quoted includes not only a bank has been made to determine to what extent recovery but also any other lender. may be made, no deduction for income tax purposes of the amount so charged off can be allowed." Last paragraph of Article 191 of Regulations 77 (relating to Revenue Act of 1932), as it existed prior Amendment to Federal income tax regulations to above amendment of April 3, 1936: "Where banks or other corporations which are sub- There is set out below a copy of a recent ject to supervision by Federal authorities (or by amendment to the regulations issued under State authorities maintaining substantially equivalent standards) in obedience to the specific orders, or the Revenue Act of 1934 and the Revenue Act in accordance with the general policy of such superof 1932, relating to the deductibility, in comvisory officers, charge off debts in whole or in part, puting net income for the purpose of Federal such debts shall, in the absence of affirmative eviincome tax, of debts charged off in whole or dence clearly establishing the contrary, be presumed, in part during the taxable year in obedience for income tax purposes, to be worthless or recoverable only in part, as the case may be." to the specific orders of supervisory authorities. For ready reference there are also set out below copies of the two paragraphs of Discussion of questions arising under regulations of the regulations which were affected by the the Comptroller of the Currency governing the amendment. purchase of investment securities (T. D. 4633) For the information of member banks, Income Tax there are printed below excerpts from an ad- Last paragraph of article 23 (k)-l of Regulations 86 dress made by the Comptroller of the Curand last paragraph of article 191 of Regulations 77, rency before the California Bankers Associa- Amended. tion, at Sacramento, Calif., on May 22, 1936, TREASURY DEPARTMENT in which there are discussed certain ques- OFFICE OF COMMISSIONER OF INTERNAL REVENUE tions regarding his regulations governing WASHINGTON, D. C. the purchase of investment securities pur- To Collectors of Internal Revenue suant to the provisions of section 5136 of the and Others Concerned: Revised Statutes: The last paragraph of article 23(k)-l of Regulations 86 and the last paragraph of article 191 of Effective as of February 15, 1936, certain regula- Regulations 77 are amended to read: tions governing the purchase of investment securities Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

422 FEDERAL RESERVE BULLETIN JUNE 1936 by banks, subject to the provisions of section 5136 of the factors involved. Most of the public, unfortuthe Revised Statutes, were promulgated by the nately, never knew fully the causes of our banking Comptroller's office. These regulations were issued troubles because the facts were not available to them, in compliance with a duty imposed by Congress in and they might be easily convinced that the whole Section 5136 which reads: trouble can be charged to so simple a thing as strict "The association may purchase for its own account eligibility requirements. investment securities under such limitations and "It is contended that a study of the assets of failed restrictions^ as the Comptroller of the Currency may banks would completely dispel the view that the by regulation prescribe . . . As used in this section troubles of these banks were due chiefly to a lack of the term 'investment securities' shall mean market- borrowing power. No one can peruse the facts withable obligations eyidencing indebtedness of any per- out arriving at the absolute conviction that the son, co-partnership, association or corporation, in troubles of the banks were due in considerable part the form of bonds, notes and/or debentures, com- to assets which should never have been in the banks monly known as investment securities under such at any time, under any conditions. In the years prior further definition of the term 'investment securities' to the depressions of both 1921 and 1929 the banks as may by regulation be prescribed by the Comptrol- became involved in the speculative fever of the age, ler of the Currency." and many of them filled their portfolios with assets It will also be noted that it was by virtue of the which were bound to show losses with the turn of the Act of Congress and not by regulation of the Comp- economic tide. No artificial methods of liquidity and troller's office that the limitation on investment is no attempt to have the Federal Reserve System hold imposed in section 5136, which provides that: up the inflated balloon could possibly have avoided "In no event shall the total amount of the invest- the ultimate consequences. ment securities of any one obligor or maker, held by "It may be of interest at this point to present a the association for its own account, exceed at any few simple facts which were revealed by a detailed time 10 per centum of its capital stock actually paid analysis of the assets of failed banks. Of the banks in and unimpaired and 10 per centum of its unim- failing in 1931, 105 were picked at random from all paired surplus fund." sections of the country, and the 50 bonds contributing A few State Federal Reserve member banks have the greatest depreciation to the portfolios of the 105 not understood that the reason that both the 10 per- banks were listed and tabulated. The two bonds cent limitation and the provisions of the regulations which contributed the greatest depreciation to the of the Comptroller's office apply to them is due to portfolios of this group were convertible bonds which the fact that Congress enacted as part of the Bank- had been bought at prices substantially above par. ing Act of 1933, an amendment to section 9 of the In other words, they were speculations. There were Federal Reserve Act, providing that: several other convertible bonds in the list which also "State member banks shall be subject to the same caused heavy losses. Of the first 50 bonds in point of limitations and conditions with respect to the pur- depreciation, only five had ratings of the first three chasing, selling, underwriting and holding of invest- grades in 1929; four of these five were convertible ment securities and stock as are applicable in the issues in which the banks' losses were due to having case of national banks under paragraph 'Seventh' of bought them at too high a price. The remainder of section 5136 of the Revised Statutes, as amended." the issues were of the fourth grade or lower. These Having in mind the great extent to which the banks were sacrificing security for high yield. Only healthy condition of our banks is dependent upon the four of the 50 issues were brought out before 1923 exercise of sound investment policies, and being and 42 percent of them were brought out in 1928 or acutely conscious of the disasters precipitated in the later. In other words, the bonds causing the greatpast because a portion of the banks failed to exercise est amount of depreciation were unseasoned issues, such sound policies, my office made a protracted and largely the product of boom conditions in the bond comprehensive study of the situation with a view to market." prescribing, with the effect of law, the investment As is inevitable in the matter of regulations, quespolicies which must hereafter be followed—policies tions of interpretation arise from time to time. While which were in the main already in force in the better there has been unanimous aproval of the objective managed institutions. Manifestly, the problems of toward which these regulations are directed, a comthe billion-dollar bank are not the same as those of mittee of the American Bankers Association has a two-hundred-thousand dollar bank, and to frame a suggested that some of their members desire to have regulation that will in every case operate equally and clarified certain aspects of the regulations. The proequitably on both the large and small institution is a vision which has probably been of most interest in difficult task. this connection is paragraph (3) of section II of the As you may have observed, the motif running regulations, and the footnote thereto. This parathrough the regulations is one of anti-speculation. graph prohibits the purchase of investment securities The reason therefor is based on causes which have in which the investment characteristics are distinctly been admirably expressed by the Commission on or predominately speculative and the footnote states Banking Law and Practice of the Association of Rethat the terms used in the paragraph may be found serve City Bankers in its "Summary of Arguments in recognized rating manuals, and that where there on Title II of the Banking Bill of 1935" issued in is doubt as to eligibility, then such eligibility must May, 1935. be supported by not less than two rating manuals. Permit me to quote from that pamphlet: "The disastrous period of bank liquidations is Inquiry has been made as to whether this means getting further and further behind us and it is proba- that member banks are thus confined to the purchase ble that even bankers are becoming somewhat forget- of securities which have a rating classification in one ful of the true causes of the trouble, although at one of the four groups according to rating services. The time there would have been little disagreement as to responsibility for proper investment of bank funds, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

423 JUNE 1936 FEDERAL RESERVE BULLETIN now, as in the past, rests with the directors of the in- the security is callable at a given price above par, the stitution, and there has been and is no intention on rate of amortization will have to be such as to have the part of this office to delegate this responsibility to gradually extinguished the premium down to call the rating services, or in any way to intimate that price by the call date, regardless of whether the this responsibility may be considered as having been security is in fact called on that date. Thereafter, if fully performed by the mere ascertaining that a par- not called, amortization shall continue from that ticular security falls within a particular rating clas- point to maturity on the same basis as though the sification. security had been purchased on the call date at the Reference to the rating manuals was made in the call price. regulation in recognition of the fact that many banking institutions, by reason of lack of experienced personnel and access to original sources, are unable per- Taxation of capital investment of Reconstruction sonally to investigate the background, history and Finance Corporation in banks prospects of a particular issuer of securities, and consequently must rely to some extent upon such in- [PUBLIC—No. 482—74TH CONGRESS] formation as has been compiled by various rating services in their large rating manuals. It may also [S. 3978] be expected that banking institutions will desire to supplement their own judgment by checking it AN ACT against the opinion of others, including ratings that Relating to taxation of shares of preferred stock, capital notes, and dehave been given by rating services. Such ratings, bentures of banks while owned by the Reconstruction Finance Corporation and reaffirming their immunity. however, regardless of whether or not they are in the first four groups, are not conclusive on the ques- Be it enacted by the Senate and House of Represention of eligibility. It is recognized that some securi- tatives of the United States of America in Conties, which are entirely eligible from a non-specu- gress assembled, That section 304 of the Act enlative standpoint at the time they are available for titled "An Act to provide relief in the existing napurchase, may have as yet received no rating by the tional emergency in banking and for other purrating services. It is also recognized that a security poses", approved March 9, 1933, as amended, be furwith a high rating according to the services may, in ther amended by adding at the end thereof the folthe circumstances of a particular case, be an un- lowing : desirable investment, whereas on the other hand, con- "Notwithstanding any other provision of law or ditions existing at the time of investment may make any privilege or consent to tax expressly or impliedly a security entirely eligible, notwithstanding the fact granted thereby, the shares of preferred stock of nathat it has a comparatively low rating according to tional banking associations, and the shares of prethe standard rating services. In the latter type of ferred stock, capital notes, and debentures of State case, of course, there will be a correspondingly greater banks and trust companies, heretofore or hereafter burden upon the bank to satisfy the examiners that acquired by Reconstruction Finance Corporation, and a particular security is in fact eligible from a non- the dividends or interest derived therefrom by the speculative standpoint. Reconstruction Finance Corporation, shall not, so Paragraph (5) in section II of the regulations pro- long as Reconstruction Finance Corporation shall hibits the purchase of securities convertible into stock continue to own the same, be subject to any taxation at the option of the issuer. In this connection ques- by the United States, by any Territory, dependency, tion has been raised as to purchase of securities ac- or possession thereof, or the District of Columbia, or companied by stock purchase warrants or rights. It by any State, county, municipality, or local taxing is unnecessary to remind you gentlemen of the pro- authority, whether now, heretofore, or hereafter imhibition against banks investing in stocks. The state- posed, levied, or assessed, and whether for a past, ment quoted a few moments ago relative to the dan- present, or future taxing period." g-er of investment in convertible bonds equally ap- Section 2. Effective upon the date of enactment of plies to securities carrying stock purchase rights. this Act, interest charges on all loans by the Recon- They are speculations—and in addition to being objec- struction Finance Corporation to closed banks and tionable as such, they in effect constitute a prohibited trust companies, now in force, or made subsequent investment in stocks because the price paid by the to the date of enactment of this Act, shall not exceed bank involves a premium which in part reflects the 3 V2 per centum per annum on condition that the rate conjectural value of the stock right, and such pur- of interest charged debtors of such banks or trust chase is to that extent not a purchase of an invest- companies shall not exceed AV per centum per an- 2 ment security. Inasmuch as the bank is prohibited num; otherwise such interest rate shall be as fixed by law from exercising the purchase warrant after by the Reconstruction Finance Corporation: Proit has been acquired, such portion of the bank funds vided, however, That no provision of this Act shall as are allocable to the original purchase of the war- be construed to authorize a reduction in the rate of rant, would have been expended on no justifiable interest on such loans by the Reconstruction Finance basis under the law. Corporation retroactive from the date of enactment Some banks have misunderstood the amortization of this Act. requirements of the regulations as respects securi- Section 3. If any provision, word, or phrase of this ties purchased at a price exceeding par. It should Act, or the application thereof to any condition or be made clear that the premium need only be gradu- circumstance, is held invalid, the remainder of the ally amortized at regular intervals over the life of Act, and the application of this Act to other cona security to the end that at its maturity the security ditions or circumstances, shall not be affected thereby. will not be carried at an amount in excess of par. If Approved, March 20, 1936. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

424 FEDERAL RESERVE BULLETIN JUNE 1936 Amendments to Securities Exchange Act and conditions need not be imposed in any case or class of cases in which it shall appear to the Commis- [PUBLIC—No. 621—74TH CONGRESS] sion that the public interest and the protection of [S. 4023] investors would nevertheless best be served by such extension of unlisted trading privileges. In the pub- AN ACT lication or making available for publication by any national securities exchange, or by any person di- To provide for the continuation of trading in unlisted securities upon national sscurities exchanges, for the registration of over-the-counter rectly or indirectly controlled by such exchange, of brokers and dealers, for the filing of current information and periodic quotations or transactions in securities made or reports by issuers, and for other purposes. effected upon such exchange, such exchange or con- Be it enacted by the Senate and House of Repre- trolled person shall clearly differentiate between quosentatives of the United States of America in Con- tations or transactions in listed securities, and gress assembled, That subsection (f) of section 12 quotations or transactions in securities for which unof the Securities Exchange Act of 1934 is amended listed trading privileges on such exchange have been to read as follows: continued or extended pursuant to this subsection. "(f) Notwithstanding the foregoing provisions of In the publication or making available for publicathis section, any national securities exchange, upon tion of such quotations or transactions otherwise application to and approval of such application by than by ticker, such exchange or controlled person shall group under separate headings (A) quotations the Commission and subject to the terms and conor transactions in listed securities, and (B) quotaditions hereinafter set forth, (1) may continue untions or transactions in securities for which unlisted listed trading privileges to which a security had trading privileges on such exchange has been conbeen admitted on such exchange prior to March 1, tinued or extended pursuant to this subsection. 1934; or (2) may extend unlisted trading privileges to any security duly listed and registered on any "The Commission shall by rules and regulations other national securities exchange, but such unlisted suspend unlisted trading privileges in whole or in trading privileges shall continue in effect only so long part for any or all classes of securities for a period as such security shall remain listed and registered not exceeding twelve months, if it deems such suson any other national securities exchange; or (3) pension necessary or appropriate in the public intermay extend unlisted trading privileges to any secu- est or for the protection of investors or to prevent rity in respect of which there is available from a evasion of the purposes of this title. registration statement and periodic reports or other "Unlisted trading privileges continued for any sedata filed pursuant to rules or regulations prescribed curity pursuant to clause (1) of this subsection shall by the Commission under this title or the Securities be terminated by order, after appropriate notice and Act of 1933, as amended, information substantially opportunity for hearing, if it appears at any time equivalent to that available pursuant to rules or that such security has been withdrawn from listing regulations of the Commission in respect of a secu- on any exchange by the issuer thereof, unless it shall rity duly listed and registered on a national securi- be established to the satisfaction of the Commission ties exchange, but such unlisted trading privileges that such delisting was not designed to evade the shall continue in effect only so long as such a regis- purposes of this title or unless it shall appear to the tration statement remains effective and such periodic Commission that, notwithstanding any such purreports or other data continue to be so filed. pose of evasion, the continuation of such unlisted trading privileges is nevertheless necessary or ap- "No application pursuant to this subsection shall propriate in the public interest or for the protection be approved unless the Commission finds that the conof investors. On the application of the issuer of any tinuation or extension of unlisted trading privileges security for which unlisted trading privileges on any pursuant to such application is necessary or appro- exchange have been continued or extended pursuant priate in the public interest or for the protection of to this subsection, or of any broker or dealer who investors. No application to extend unlisted trading makes or creates a market for such security, or of privileges to any security pursuant to clause (2) or any other person haying a bona-fide interest in the (3) of this subsection shall be approved except after question of termination or suspension of such unappropriate notice and opportunity for hearing. No listed trading privileges, or on its own motion, the application to extend unlisted trading privileges to Commission shall by order terminate, or suspend for any security pursuant to clause (2) or (3) of this a period not exceeding twelve months, such unlisted subsection shall be approved unless the applicant ex- trading privileges for such security if the Commischange shall establish to the satisfaction of the sion finds, after appropriate notice and opportunity Commission that there exists in the vicinity of such for hearing, that by reason of inadequate public disexchange sufficiently widespread public distribution tribution of such security in the vicinity of said exof such security and sufficient public trading activity change, or by reason of inadequate public trading therein to render the extension of unlisted trading activity or of the character of trading therein on privileges on such exchange thereto necessary or ap- said exchange, such termination or suspension is propriate in the public interest or for the protection necessary or appropriate in the public interest or for of investors. No application to extend unlisted trad- the protection of investors. ing privilges to any security pursuant to clause (3) "In any proceeding under this subsection in which of this subsection shall be approved except upon such appropriate notice and opportunity for hearing are terms and conditions as will subject the issuer required, notice of not less than ten days to the apthereof, the officers and directors of such issuer, and plicant in such proceeding, to the issuer of the securevery beneficial owner of more than 10 per centum of ity involved, to the exchange which is seeking to consuch security to duties substantially equivalent to tinue or extend or has continued or extended unlisted the duties which would arise pursuant to this title if trading privileges for such security, and to the exsuch security were duly listed and registered on a change, if any, on which such security is listed and national securities exchange; except that such terms registered, shall be deemed adequate notice, and any Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1936 FEDERAL RESERVE BULLETIN 425 broker or dealer who makes or creates a market for as the Commission may prescribe, adopt such applisuch security, and any other person having a bona- cation as its own. fide interest in such proceeding, shall upon applica- "If any amendment to any application for registion be entitled to be heard. tration pursuant to this subsection is filed prior to "Any security for which unlisted trading privi- the effective date thereof, such amendment shall be leges are continued or extended pursuant to this sub- deemed to have been filed simultaneously with and section shall be deemed to be registered on a national as part of such application; except that the Comsecurities exchange within the meaning of this title. mission may, if it appears necessary or appropriate The powers and duties of the Commission under sub- in the public interest or for the protection of invessection (b) of section 19 of this title shall be applica- tors, defer the effective date of any such registration ble to the rules of an exchange in respect of any such as thus amended until the thirtieth day after the security. The Commission may, by such rules and filing of such amendment. regulations as it deems necessary or appropriate in "The Commission shall, after appropriate notice the public interest or for the protection of investors, and opportunity for hearing, by order deny registraeither unconditionally or upon specified terms and tion to or revoke the registration of any broker or conditions, or for stated periods, exempt such securi- dealer if it finds that such denial or revocation is in ties from the operation of any provision of section the public interest and that (1) such broker or dealer 13, 14, or 16 of this title." whether prior or subsequent to becoming such, or Section 2. Any application to continue unlisted (2) any partner, officer, director, or branch manager trading privileges for any security heretofore filed of such broker or dealer (or any person occupying a by any exchange and approved by the Commission similar status or performing similar functions), or pursuant to clause (1) of subsection (f) of section any person directly or indirectly controlling or con- 12 of the Securities Exchange Act of 1934 and rules trolled by such broker or dealer, whether prior or and regulations thereunder shall be deemed to have subsequent to becoming such, (A) has willfully made been filed and approved pursuant to clause (1) of said or caused to be made in any application for registrasubsection (f) as amended by section 1 of this Act. tion pursuant to this subsection or in any document Section 3. Section 15 of the Securities Exchange supplemental thereto or in any proceeding before the Act of 1934 is amended to read as follows: Commission with respect to registration pursuant "SEC. 15. (a) No broker or dealer (other than to this subsection any statement which was at the one whose business is exclusively intrastate) shall time and in the light of the circumstances under make use of the mails or of any means or instrumen- which it was made false or misleading with respect to tality of interstate commerce to effect any transac- any material fact; or (B) has been convicted within tion in, or to induce the purchase or sale of, any ten. years preceding the filing of any such application security (other than an exempted security or com- or at any time thereafter of any felony or misdemercial paper, bankers7 acceptances, or commercial meanor involving the purchase or sale of any security bills) otherwise than on a national securities ex- or arising out of the conduct of the business of a change, unless such broker or dealer is registered in broker or dealer; or (C) is permanently or tempoaccordance with subsection (b) of this section. rarily enjoined by order, judgment, or decree of any "(b) A broker or dealer may be registered for the court of competent jurisdiction from engaging in or purposes of this section by filing with the Commis- continuing any conduct or practice in connection with sion an application for registration, which shall con- the purchase or sale of any security; or (D) has tain such information in such detail as to such willfully violated any provision of the Securities Act broker or dealer and any person directly or indirectly of 1933, as amended, or of this title, or of any rule or controlling or controlled by, or under direct or in- regulation thereunder. Pending final determination direct common control with, such broker or dealer, as whether any such registration shall be denied, the the Commission may by rules and regulations re- Commission may by order postpone the effective date quire as necessary or appropriate in the public inter- of such registration for a period not to exceed fifteen est or for the protection of investors. Except as days, but if, after appropriate notice and opportunity hereinafter provided, such registration shall become for hearing, it shall appear to the Commission to be effective thirty days after the receipt of such applica- necessary or appropriate in the public interest or for tion by the Commission or within such shorter period the protection of investors to postpone the effective of time as the Commission may determine. date of such registration until final determination, "An application for registration of a broker or the Commission shall so order. Pending final deterdealer to be formed or organized may be made by a mination whether any such registration shall be rebroker or dealer to which the broker or dealer to be voked, the Commission shall by order suspend such formed or organized is to be the successor. Such registration if, after appropriate notice and opporapplication shall contain such information in such tunity for hearing, such suspension shall appear to detail as to the applicant and as to the successor and the Commission to be necessary or appropriate in the any person directly or indirectly controlling or con- public interest or for the protection of investors. Any trolled by, or under direct or indirect common control registered broker or dealer may, upon such terms with, the applicant or the successor, as the Commis- and conditions as the Commission may deem necession may by rules and regulations require as neces- sary in the public interest or for the protection of sary or appropriate in the public interest or for the investors, withdraw from registration by filing a protection of investors. Except as hereinafter pro- written notice of withdrawal with the Commission. vided, such registration shall become effective thirty If the Commission finds that any registered broker days after the receipt of such application by the or dealer, or any broker or dealer for whom an appli- Commission or within such shorter period of time as cation for registration is pending, is no longer in the Commission may determine. Such registration existence or has ceased to do business as a broker or shall terminate on the forty-fifth day after the effecdealer, the Commission shall by order cancel the tive date thereof, unless prior thereto the successor registration or application of such broker or dealer. shall, in accordance with such rules and regulations Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

426 FEDERAL RESERVE BULLETIN JUNE 1936 " (c) No broker or dealer shall make use of the SEC. 6. Subsection (c) of section 20 of such Act is mails or of any means or instrumentality of inter- amended by inserting immediately before the period state commerce to effect any transaction in, or to the following: "or any undertaking contained in a induce the purchase or sale of, any security (other registration statement as provided in subsection (d) than commercial paper, banker's acceptances, or com- of section 15 of this title". mercial bills) otherwise than on a national securities SEC. 7. Subsection (f) of section 21 of such Act is exchange, by means of any manipulative, deceptive, amended by inserting immediately before the period or other fraudulent device or contrivance. The Com- the following: "or with any undertaking contained in mission shall, for the purposes of this subsection, by a registration statement as provided in subsection rules and regulations define such devices or contriv- (d) of section 15 of this title". ances as are manipulative, deceptive, or otherwise SEC. 8. Subsection (a) of section 23 of such Act is fraudulent. amended to read as follows: "(d) Each registration statement hereafter filed "(a) The Commission and the Board of Governors pursuant to the Securities Act of 1933, as amended, of the Federal Reserve System shall each have power shall contain an undertaking by the issuer of the to make such rules and regulations as may be necesissue of securities to which the registration state- sary for the execution of the functions vested in them ment relates to file with the Commission, in accord- by this title, and may for such purpose classify isance with such rules and regulations as the Commis- suers, securities, exchanges, and other persons or sion may prescribe as necessary or appropriate in matters within their respective jurisdictions. No the public interest or for the protection of investors, provision of this title imposing any liability shall such supplementary and periodic information, docu- apply to any act done or omitted in good faith in conments, and reports as may be required pursuant to formity with any rule or regulation of the Commissection 13 of this title in respect of a security listed sion or the Board of Governors of the Federal Reand registered on a national securities exchange; serve System, notwithstanding that such rule or regbut such undertaking shall become operative only if ulation may, after such act or omission, be amended the aggregate offering price of such issue of securi- or rescinded or be determined by judicial or other ties, plus the aggregate value of all other securities authority to be invalid for any reason." of such issuer of the same class (as hereinafter de- SEC. 9. Section 32 of such Act is amended by strikfined) outstanding, computed upon the basis of such ing out "SEC. 32." and inserting in lieu thereof "SEC. offering price, amounts to $2,000,000 or more. The 32. (a)"; by inserting immediately before the comma issuer shall file such supplementary and periodic in- following the phrase "filed under this title or any rule formation, documents, and reports pursuant to such or regulation thereunder" the following: "or any unundertaking, except that the duty to file shall be dertaking contained in a registration statement as automatically suspended if and so long as (1) such provided in subsection (d) of section 15 of this issue of securities is listed and registered on a na- title"; and by adding thereto a new subsection (b) to tional securities exchange, or (2) by reason of the read as follows: listing and registration of any other security of such "(b) Any issuer which fails to file information, issuer on a national securities exchange, such issuer documents, or reports pursuant to an undertaking is required to file pursuant to section 13 of this title contained in a registration statement as provided in information, documents, and reports substantially subsection (d) of section 15 of this title shall forfeit equivalent to such as would be required if such issue to the United States the sum of $100 for each and of securities were listed and registered on a national every day such failure to file shall continue. Such securities exchange, or (3) the aggregate value of all forfeiture, which shall be in lieu of any criminal outstanding securities of the class to which such issue penalty for such failure to file which might be belongs is reduced to less than $1,000,000, computed deemed to arise under subsection (a) of this section, upon the basis of the offering price of the last issue shall be payable into the Treasury of the United of securities of said class offered to the public. For States and shall be recoverable in a civil suit in the the purposes of this subsection, the term 'class' shall name of the United States." be construed to include all securities of an issuer SEC. 10. All brokers and dealers for whom regiswhich are of substantially similar character and the tration is in effect on the date of enactment of this holders of which enjoy substantially similar rights Act in accordance with rules and regulations of the and privileges. Nothing in this subsection shall Commission prescribed pursuant to section 15 of the apply to securities issued by a foreign government Securities Exchange Act of 1934 shall be deemed to or political subdivision thereof or to any other securbe registered pursuant to section 15 of such Act as ity which the Commission may by rules and regulaamended by section 3 of this Act. tions exempt as not comprehended within the pur- SEC. 11. Nothing in this Act shall be deemed to poses of this subsection." extinguish any liability which may have arisen prior SEC. 4. Subsection (a) of section 17 of such Act is to the effective date of this Act by reason of any amended by striking out "every broker or dealer violation of section 15 of the Securities Exchange Act making or creating a market for both the purchase of 1934 or of any rule or regulation thereunder. and sale of securities through the use of the mails SEC. 12. This Act shall become effective immedior of any means or instrumentality of interstate ately upon the enactment thereof; except that clause commerce", and inserting in lieu thereof "every (2) of subsection (f) of section 12 of the Securities broker or dealer registered pursuant to section 15 of Exchange Act of 1934, as amended by section 1 this title". hereof, and subsections (a) and (d) of section 15 SEC. 5. Subsection (a) of section 18 of such Act is of such Act as amended by section 3 hereof, shall amended by inserting immediately before the comma become effective ninety days after the enactment of following "any rule or regulation thereunder" the this Act, and that clause (3) of said subsection (f), following: "or any undertaking contained in a regis- as amended by section 1 hereof, shall become effective tration statement as provided in subsection (d) of six months after the enactment of this Act. section 15 of this title". Approved, May 27, 1936. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

427 JUNE 1936 FEDERAL RESERVE BULLETIN ANNUAL REPORT OF THE BANK FOR INTERNATIONAL SETTLEMENTS The sixth annual report of the Bank for tempts proved unsuccessful, by the introduc- International Settlements, covering the year tion of moratona, transfer provisions and ended March 31, 1936, was submitted by Mr. exchange restrictions, with the result that L. J. A. Trip, president of the bank, to the not only did foreign credits remaining in the general meeting of shareholders on May 11, countries affected become frozen but ordinary 1936. Sections of the report are given here- trade was hampered by new and formidable with:1 fetters. Fourthly, in the autumn of the same year INTRODUCTION there followed the depreciation of sterling Seven years have passed since in the course and of a number of other currencies. New of 1929 the great depression began which still elements of uncertainty were thus added to holds large parts of the world in its grip. the economic and financial situation and It might have been expected that in the period strong downward pressure was exerted on which has elapsed the depressive forces would prices quoted on a gold basis in the world have spent themselves and general prosperity markets. A period of monetary changes had would have returned. But the depression of begun which within two years was also to these seven lean years has not been merely involve the United States dollar. a slump of the pre-war order. Its back- The time has come to take stock of the ground was different—it supervened upon situation and to consider what progress has an economic and financial situation still suf- been made on the path of recovery. fering from the dislocation caused by a world Signs are not lacking that the downward war; and, with the volume of world unem- trend of business, the element in the depresployment above 30,000,000, it has grown into sion which in its reactions most nearly corsomething vaster than any pre-war depres- responds to pre-war experience, has already sion. In the succession of events it is pos- been arrested over a wide field. Articles wear sible to recognize four major disturbances: out, tools and machinery require replacement Firstly, there was the ordinary downward and buildings need repair. As a depression trend of business. Conforming to type, this proceeds and population increases unsatisfied was characterized by reduced sales, accumu- wants accumulate and these sooner or later lation of stocks and decline in output, par- find expression in effective demand. Furthericularly in branches such as the iron and steel more, when times are difficult bad business industries which produce capital goods or, in is in constant process of liquidation, unecogeneral, provide industrial, agricultural, nomic methods are scrapped and countless trade and transport equipment. efforts are made by individual firms to put Secondly, there was a widespread fall in their affairs on a remunerative basis. The prices of primary products—both foodstuffs cumulative effect of all these separate efforts and industrial raw materials. This put a helps to restore that equilibrium between particularly heavy strain on the balances of costs and prices which alone can form the payments of a number of overseas countries basis of recovery. Typical evidence of reand, within a short time, effectively arrested turning activity is afforded by the improvethe flow of capital in their direction, whether ment in the tool and machine industries which in the form of loans or of new investments. after the lull of the last few years suddenly Thirdly, in the late spring and summer of found difficulty in recruiting sufficient skilled 1931 there came the banking crisis in Austria labor. and Germany. Massive withdrawals of funds In any examination of the causes of the were followed by a series of organized at- improvement which has taken place due tempts to stem the tide through the granting weight should be given to the steady influence of emergency credits and, when these at- of the curative forces inherent in the economic system itself. It is of interest to note 1 In add ition the report contains sections dealing with price move ments, foreign trade, short and long-term interest rates in detail, trustee that in spite of continued stagnation in the and agency functions of the bank, deposits and investments, net profits, building trade a strengthening of demand reserves, dividend, other distributions, changes in the board of directors and other executive officers, together with a number of annexes showing and a revival of industrial activity occurred central banks or other banking institutions to which have been alotted shares in the capital stock of the bank, profit and loss account, trustee in France, the largest gold bloc country, duroperations, etc. For earlier reports see Bulletin for June 1935, 1934, 1933, ing the latter half of 1935 and the first months 1932, and July 1931. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

428 FEDERAL RESERVE BULLETIN JUNE 1936 of 1936. This development may be regarded schemes, affecting such products as copper, as an indication that recent recuperative tend- jute, lead, nitrate, rubber, silk, sugar, tea, encies have been strong enough to mitigate tin, tin plates and wheat, have been put into maladjustments remaining in the cost and operation. For some agricultural products price structure of the different countries con- (notably wheat) a reduction in supply was sequent upon the monetary changes of the caused by the widespread drought in 1935. past five years. The case of wool is interesting: no artificial The abrupt decline in the prices of primary restriction was ever attempted and no stocks products which began in 1929 affected both were laid up but current supplies regularly foodstuffs and raw materials and in a few brought to the market. Prices slumped heavyears brought about a veritable revolution ily at first, but this stimulated consumption in the whole price structure. From 1929 to and before long prices began to recover 1933 the average of prices of important food- mainly under the influence of reviving destuffs fell by some 60 percent while the prices mand. On the whole the influence of the of essential industrial raw materials fell by various restrictive schemes should not be fully 50 percent. The price of wheat ex- overrated. It is not easy to put into effect pressed in gold touched the lowest point re- schemes that are sufficiently comprehensive corded for over 400 years. This decline came to govern the world supply of any commodity. after six or seven years of relative stability When a scheme covers only part of the total during which wholesale price indices in prac- actual or potential output there is always the tically all important countries had stood at possibility of increasing production in counabout 40 percent above the 1913 level, giving ties not adhering to the scheme. A careful apparent substance to the belief that this in- analysis of price movements during 1935 crease above pre-war levels would become a tends to show that, with the exception of a permanent feature of post-war economy. few commodities like tea and tin, increased In a number of cases the decline in prices demand by consumers and resumption of inwas due to an advance in technique which dustrial activity has counted for more in relowered costs of production; other influences, ducing stocks and lifting prices than any artihowever, were also at work. In the case of ficial restriction of supply. Government wheat, for instance, governments at first in- spending for armament purposes and the tervened to keep up the price, with the result purchase of reserve stocks prompted by war that huge stocks were accumulated which scares have also had an influence on the trend eventually weighed heayily on the market. of certain prices. But not all the new spend- The output of many primary products, and ing represented a net addition to total world of agricultural produce in particular, was demand; in the case of Germany, for instance, maintained undiminished during the depres- increased imports of raw materials required sion but prices fell heavily. The exact oppo- by armament industries was more than offset site happened with regard to many manu- by reduced imports of other commodities. factured articles; prices were kept up by Generally speaking, it was the greater abmonopolistic organizations or generally by sorption of commodities in the markets of lack of adjustment, sales went down however Great Britain, the United States and a numand soon production had to be correspond- ber of other countries which was the main ingly curtailed. The result was a great dis- cause of the revival in prices during the past parity in prices, which not only added to the year; and in this connection account must difficulties of the raw material producing be taken of the expanding demand resulting countries but threw the whole international from the increased gold production. price relationship out of equilibrium. The The increase in the demand for raw mafirst signs of a reaction were noticeable in the terials at improved prices is reflected in the autumn of 1932 and, in spite of interruptions mounting export trade of the South Amerand difficulties, the upward movement has ican countries, the Straits Settlements, New asserted itself; the year 1935 witnessed a Zealand and Australia. It is true that from steady improvement in the prices of primary the point of view of the importing countries products not only in depreciated currencies the rise in prices means that a larger amount but also to some extent in gold. By govern- in foreign currencies has to be paid for raw ment action or simply through agreement materials, but this additional outlay should between producers a number of restrictive soon be recovered in the general improve- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1936 FEDERAL RESERVE BULLETIN 429 ment in world business. The brisker trade from 70,000,000,000 to 30,000,000,000 Swiss with overseas countries has already helped to francs. When the crisis broke out in 1931 revive shipping. Many of the countries pro- reserves accumulated by central banks and ducing primary products, though helped by other credit institutions were employed to the better prices, are still faced with a series cover withdrawals and when these resources of problems, including certain difficult debt became exhausted other methods were found, conditions. There has been in some cases varying in character from country to counconversion of old loans to lower interest try. Germany thus concluded agreements rates, but not yet any recovery in new foreign with her standstill creditors under which lending to countries producing primary prod- short-term credits were liquidated by the ucts or in the investment in any form of new sale of so-called registered marks for tourist foreign capital in them. The Empire and and other purposes. In many cases indiforeign issues on the London capital market vidual debtors and creditors made arrangeregistered, again in 1935, figures constituting ments between themselves for repayments, new low records (except for the war years). the creditors as a rule accepting a more or The liquidity crisis which swept over Eu- less heavy discount on the amount due when rope in 1931 left behind it a system of ex- ready cash was forthcoming for the rechange restrictions which as time went on mainder. developed into a network of ever-increasing On long-term account also a reduction control and prohibitions. In only one se- of outstanding foreign indebtedness was verely affected country, Austria, has it been achieved mainly by the repatriation of bonds possible to abolish most of the restrictions by private individuals. Adequate statistics imposed during the crisis and restore a free are lacking, but such enquiries as have been foreign exchange market. In Hungary and made indicate that repurchases of bonds have Rumania some simplification was made in taken place on a very extensive scale. As far the course of 1935 in the very complicated as European countries are concerned, foreign system that had gradually been elaborated. indebtedness has been reduced far below the Moreover, in South America, Ecuador com- high level reached a few years ago. If, howpletely abolished all exchange control in the ever, reserves are slender and the export autumn of 1935, and in the course of the same position uncertain, even comparatively modyear several other countries found it pos- erate indebtedness can cause great difficulty sible to apply with somewhat greater free- and necessitate the maintenance of hamperdom the regulations on their exchange mar- ing restrictions. The world has been caught kets. Against this, however, must be set the in a vicious circle where the system of control imposition of new restrictions in Danzig, handicaps trade, and the shrinkage in trade Italy, Lithuania and recently in Poland, the increases the difficulties of the foreign exenforcement of a more severe control in sev- change position subject to control. eral markets and a continued multiplication But cannot this circle be broken? Once of clearing arrangements, bringing the num- the total volume of indebtedness has been ber of such arrangements concluded by Ger- brought down to manageable proportions the many, for instance, from 25 in 1934 to 32 at case for settlement by consolidation and adthe end of 1935. On balance little improve- justment of charges acquires additional ment has been achieved; the transfer of strength. With so many signs to indicate funds from one market to another, whether that general business conditions in the world for financial or commercial account, is still have taken an upward trend, surely arrangesubject to intricate regulations in a large ments for the solution of outstanding debt number of countries. problems should be made at the earliest pos- But if the restrictions still remain in sible moment, particularly with the object force, the underlying debt position which of hastening the removal of those restricgave rise to their introduction has in many tions which are most harmful to the spreadways improved. The statistics compiled by ing of recovery. the Bank for International Settlements (and The history of currency depreciation durgiven later in this report) show that from ing the course of the depression may be 1930 to 1935 the total volume of short-term readily summarized: before the crisis of the international indebtedness of European coun- summer and autumn of 1931 the currencies tries and the United States was reduced of four raw material producing countries Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

430 FEDERAL RESERVE BULLETIN JUNE 1936 had left gold; during the period beginning In the countries which had introduced exwith the depreciation in sterling in Septem- change regulations, the actual rates at which ber, 1931, and ending in April, 1933, when foreign currencies were sold would often dethe exchange value of the dollar fell below pend on the particular character of the busipar, 35 currencies went off gold; and since ness involved. But the tendency recently 1933 the dollar and some other currencies, has been to apply more uniform rates and including the three silver-standard curren- this development represents a further step cies of China, Manchukuo and Hong Kong, toward real stability. The working of clearhave depreciated. These many changes in ing arrangements has further led to a standcurrency values could not fail to exert a di- ardization of the exchange rates on which rect effect adverse to world trade. There current commercial transactions are based. was, however, an indirect effect, in many Then there are a number of currencies ways more pernicious; when exchange rates which have been pegged on sterling; these between countries suddenly fluctuated to the include, in addition to members of the British extent of 20 percent or more, the govern- Empire, the Scandinavian countries, Finland, ments of countries adversely affected found Estonia, Portugal, Japan and some South themselves obliged to apply measures for the American countries. For this group the conprotection of the economic life of their coun- trol by the Exchange Equalization Account tries; new duties were imposed, existing established in Great Britain in 1932 has been duties were increased and many governments of outstanding importance. The object of had recourse to quotas and similar limitations the Account was to iron out undue exchange which in their effect on trade and economic fluctuations and it served to counteract searelations generally were distinctly more ham- sonal and other temporary influences. Still, pering than the other measures of protection. however, the fluctuations over the year in During the past five years changes in cur- the exchange value of the pound were of the rency values have ranged from zero, in the magnitude of 13 percent in 1934. But from few countries which have remained on gold the spring of 1935 the Exchange Equalization at par, to a depreciation of 75 percent in Account exerted stronger control and in the the case of Chile. These figures may, how- autumn the seasonal downward pull was ever, give a somewhat exaggerated impres- effectively counteracted. Indeed, since the sion of the disorder experienced, for meas- middle of 1935 the widest variations in the ures were as a rule taken by central banks price of gold in London have not exceeded or governments to reduce fluctuations of for- in all 2 percent, which means that within eign exchange rates or to establish a new re- very narrow limits sterling has been stable lationship to gold. The United States dollar, in terms of gold. the Czechoslovakian crown, the bdga and When the fluctuations of sterling were still the Danzig guilder have been re-linked di- comparatively wide, it was easy to indicate rectly to gold; and though the governments which currencies were to be included in the in the United States and Belgium obtained sterling group and which were linked to gold the right to alter, within certain definite or the French franc. But now that sterling limits, the weight in gold of their currency is relatively stable in terms of gold this disunits, no use has been made of this right; tinction between different groups becomes in fact, the belga was definitely stabilized in more difficult to observe. Since the cutting the spring of 1936. In a number of other of the link with silver the exchange rates of countries exchange rates have been main- the Chinese dollar have been kept approxitained stable in relation to some gold cur- mately stable, but the Chinese currency canrency. The Greek drachma, for instance, not be said to have been pegged either on which depreciated in 1932 has since been sterling or on the United States dollar. The pegged at a lower level on the French franc ; division of currencies into different groups the Austrian schilling and the Yugoslav dinar has lost some of its original significance due have likewise been held stable since 1933 on to the realization of greater de facto currency the basis of the franc; and in February, 1936, stability over the world as a whole. the State Bank of the U. S. S. R. was charged Unfortunately no corresponding progress with the maintenance of a fixed rate for the has been made in the restoration of real ruble in terms of the French franc in all its monetary confidence internationally. At one exchange operations. time or another during the course of the year Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1936 FEDERAL RESERVE BULLETIN 431 every one of the major currencies has been still widely lacking. Industrial production under discussion, with rumors circulating as has advanced well in a number of countries, to possible depreciation from present values. but international trade has not made a cor- In these circumstances it is hardly surprising responding improvement. The growth in that people have transferred their funds from foreign trade has in the first place been in one country to another, and it is transfers raw materials, while manufactured articles of this kind more than purely speculative penetrate only with difficulty the barriers operations based on borrowed money which surrounding national markets. The world have given rise to the movements of balances has once more to learn the lesson that trade and gold in the year under review. To have grows best when freed from fetters. Some realized exchange stability through the con- progress in removing obstacles to trade has trol exercised by central banks and exchange been made in the last few years by the confunds is clearly an achievement, but some- clusion of bilateral agreements, the benefits thing more is needed. The world's monetary of which are extended by the inclusion of structure must be so strengthened that it the most-favored-nation clause. These efforts will again command the confidence of the aim at an expansion of trade, the antithesis public. Political and monetary authorities of the extreme restrictionist policy which to should show the necessary determination and so large an extent has characterized governhave at their command adequate resources ment policy since the depression began in to give effect to the policy adopted and not 1929. In the monetary field the large current be deterred by any flow of nervous money, gold production provides an expanding basis however large in volume or persistent in for a liberal monetary policy. There is cermovement. The aim should be to build up tainly a desire in each country to proceed again a stable system which will fulfill the along the lines of cheap and plentiful credits essential conditions of financial and economic and deviations from this policy forced upon equilibrium; costs and prices in the individual individual central banks in the course of 1935 countries must be adapted to the require- have been in the nature of temporary reacments of the common standard and a balance tions against an abnormal outflow of funds. achieved in which the stresses and strains Political tension, though it has not entirely of currency over or under valuation would prevented recovery, has greatly influenced be reduced to a minimum. the direction which recovery has taken. Fear The past seven years have constituted one of war is naturally apt to give increased of the most disturbed periods through which weight to nationalistic tendencies and parthe world economy has ever passed in times ticularly to stimulate a movement toward of peace. Since 1929, when quotations on the autarchy. Expansion of credit and other stock exchanges slumped and prices of pri- measures taken to overcome the depression mary products began to decline, until 1933, have as a rule been confined to the national when the dollar depreciated, one major dis- sphere. Internationally the influence has turbance after the other beset the world. An made itself felt in the main through the abnormal volume of unemployment and ex- greater de facto stability of the foreign exceptionally large gold movements are signs changes and the larger purchases of raw maof the prevailing difficulties and uncertain- terials by countries in which domestic proties. It is evident, however, that in many duction has increased. respects improvement has been achieved Faced with the problems of the depression, since the worst days of the depression. The central banks have endeavored to perfect normal cyclical swing is now upward. Pri- methods of action both at home and in their mary products are again in greater demand international relations. Assistance has been and are being sold at better prices. Interna- given in many ways by the monetary authortional indebtedness has been substantially ities of one country to those of another in reduced and a large measure of de facto ex- order to maintain exchange fluctuations withchange stability between the principal cur- in narrow limits. New and effective means rencies has been maintained for fully a year. have been devised to prevent funds from But monetary restrictions continue to hold becoming available for currency speculation; the field in a large part of the world, ham- if during the past year such speculation has pering finance and commerce, and in inter- counted for less in the international movenational dealings confidence in currencies is ment of funds than it otherwise would have Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

432 FEDERAL RESERVE BULLETIN JUNE 1936 done, this is at least partly due to the initia- the pound. Since June 1, 1935, the distance tive of the central banks. In addition to the between the highest and lowest quotations questions which fall within their own sphere of the French franc-sterling rate has been of action, central banks have to tender advice only l!/2 percent, as compared with about to their respective governments and markets 7 percent in the previous twelve months. on a large number of questions, many of them The great measure of exchange stability involving matters of international impor- which has prevailed since the spring of 1935 tance, for which contact between the central can best be judged from the fact that there banks cannot fail to be of value. During are only a very limited number of countries the course of the year the Bank for Interna- whose currencies have since then been subtional Settlements has continued to serve as ject to any appreciable change. First there a center for consultation and is happy to find are the three silver standard countries in the that at the regular meetings in Basel not only East: China, Manchukuo and Hong Kong, has contact been maintained, but useful sug- which after severing their link with silver gestions have been put forward which have adopted systems of management of their forbeen translated into practical action. eign exchanges; the rates quoted by the end of 1935 involved some 30 percent depreciation, in terms of gold, from the increased EXCHANGE RATES value to which the rise in the silver price Events in the opening months of 1935 did had brought them. The rial of Iran was also not augur well for the maintenance of ex- affected by the changes in the price of silver; change stability. Contrary to the normal it rose in value in sympathy with the silver seasonal trend, sterling showed great weak- price until in the summer of 1935 a change ness in February and March; the gold price was made and the exchange value was lowin London rose on March 6, 1935, to 149s. ered to about 20 percent below the level ob- 4d., the highest sterling quotation ever re- taining at the beginning of the year. In corded, as compared with a maximum of Europe the new system of premia paid by 140s. Od. in the corresponding months of the the National Bank of Rumania for certain previous year. On April 1,1935, the belga was currencies caused the quotation of the leu to devalued by 28 percent in terms of gold, and on depreciate in the free markets by some 30 May 2 the Danzig guilder by 42 percent. In percent. New regulations regarding the the course of the spring large transfers were premia to be paid by importers and to exmade from the French, Dutch and Swiss porters were also issued in Hungary and markets and spot quotations of the French seem to have somewhat affected the quotation franc, the guilder and the Swiss franc were of the pengo on foreign markets. brought to the gold export points; forward The gold value of the Italian lira fell by rates also widened considerably, the discount 6 percent during the year. In the U. S. S. R. on three months forward French francs in a decree of November 16, 1935, terminated London touching a point one day in May, the sale of goods in the Torgsin shops against 1935, corresponding to an interest rate of foreign currencies and fixed, for all opera- 40 percent per annum. The gold currencies tions connected with foreigners' visits to the were, however, maintained by the classical U. S. S. R., a rate of one ruble equal to three means of gold exports and increases of dis- French francs (instead of the previous legal count rates sufficiently vigorous to indicate rate of one ruble to 13.13 francs). By a the determination of the respective central further decree dated February 29, 1936, the banks to defend their positions. new rate was adopted for all foreign busi- The outflow of funds from the continental ness; the State Bank was authorized to remarkets helped to sustain the value of the value its reserves of gold and foreign curpound and assisted the authorities in London rencies and charged with the maintenance in taking firmer control of their exchange of this rate in all exchange operations. position. In the autumn when large foreign The exchanges of several South American payments had to be made, the Exchange countries were subject to fluctuations during Equalization Account employed a substantial 1935, the most pronounced being a further part of its gold holdings to provide the mar- depreciation of the Bolivian and Paraguayan ket with the foreign exchange required and currencies which were adversely affected by thus prevented an undue fall in the value of the Chaco war. The Brazilian free milreis Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

433 JUNE 1936 FEDERAL RESERVE BULLETIN and the Colombian peso also declined in value, there is an inflow of funds into the British the former by 16 percent and the latter by market and the Account sees fit to intervene, 10 percent, these being the extreme move- Treasury bills are sold and the sterling thus ments of the year. On the other hand, the obtained is used to buy, say, French francs quotations of the Argentine peso in the free which the Account is able to convert into market improved by 9 percent and the Peru- gold. Gold may also be bought or sold divian sol by about 3 percent. rectly on the London market against sterling In the remaining countries of the world to exert a desired influence on the gold price. currency changes have been unimportant, Thus through the double operation of selling which means that an area covering more Treasury bills and buying foreign exchange than 85 percent of world trade has for a full or gold, not only the foreign exchange posiyear enjoyed practical de facto exchange tion but also the volume of credit on the stability. domestic market is affected. The sale of The reestablishment of such a degree of Treasury bills by the Account acts, in fact, order in the exchange situation has been pos- as an offsetting open-market operation presible only by very determined efforts and it venting an inflow of gold to London from inis satisfactory to record that co-operation creasing the cash balances of the joint stock between the monetary authorities of the dif- banks with the Bank of England. Conferent countries has played a growing part versely, when the Account sells gold or in the execution of this policy. Means have French francs to support the exchange value been devised to fight against currency specu- of the pound, it obtains resources in sterling lation and in their current dealings on the with which it may repurchase part of its exchange markets the monetary authorities Treasury bills outstanding, thereby operathave been able actively to assist one another. ing in the opposite direction so that the cash It may be of interest to quote the testimony reserves of the market are maintained in of two central banks given in their annual spite of an outflow of funds. An addition to reports: the Bank oil France writes that in the gold holdings of the Exchange Equalizathe course of 1935 it appeared essential to tion Account, therefore, does not lead to an maintain closer contact with foreign centers; increase in the amount of bankers' balances. the bank wished to express its gratitude to To provide for more notes in circulation or the Bank for International Settlements and an increase in bankers' balances, the Bank of to the banks of issue of the principal markets England may take over part of the gold, withfor the real support rendered in aid of the out a counteracting sale of securities, or purdefense of the franc. And the Swiss National chase securities on its own initiative. Bank emphasizes the collaboration in the fol- It is interesting to analyze on the basis of lowing words: "More than once in the course the Bank of England returns the changes of the year it was found that banks of issue which have taken place since the depreciation made efforts to limit fluctuations in the quota- of sterling in 1931. In the year 1932 when tions by intervention on the exchange mar- the policy of cheap and plentiful credit was kets. In this way they have not only sup- put into effect the Bank of England increased ported their own exchanges, but also fre- its holdings of securities by £31,000,000 and quently aided other countries to defend their this was the main cause of an expansion in currencies." bankers' balances by £38,000,000 (from Jan- Secrecy is still maintained about the trans- uary, 1932, to January, 1933), the note circuactions of the British Exchange Equalization lation remaining practically stable. During Account and the variations in its assets, al- the three years from January, 1933, to Janthough the general character of the control uary, 1936, bankers' balances hardly changed has become fairly well known and its signifi- (apart from regular fluctuations of a seacance is increasingly discussed in the public sonal character), but the amount of notes in press. The Account was formed in the spring circulation went up £44,000,000. This inof 1932 to iron out undue fluctuations in the crease in the bank's liabilities was more than exchange rate of sterling, and it has been counterbalanced by an increase of £79,000,000 supplied altogether witl £375,000,000 in in the gold holdings, while the Banking desterling assets, mostly Ti easury bills, from partment's holdings of securities were rethe sale of which it obtains the sterling bal- duced by £15,000,000 and the fiduciary issue, ances necessary for its operations. When and the securities behind it in the Issue de- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

434 FEDERAL RESERVE BULLETIN JUNE 1936 partment, were also reduced by £15,000,000. and $123,000,000 in February. Though no The following table gives the relevant fig- announcement has been made as to the gold ures : or foreign exchange held by the Fund, it [In millions sterling] should be observed that all gold actually shipped to the United States appears in the Fiduciary Total official returns of the total gold stock. W B e a d ( n n A k e v s o e d r f a a y E g e n f s g i g o la u f n re d s) e c i r i s u s e s r s d u i u t e i e b e c y d s o e s v i - e n - - b d s t a i e e n e c p s k u a i i r r n n i t - - g h G i o n o l g l d d - N l c a i t o r i i n c t o u e n s - B a b e n a a r c n s l e - ' k s - cha G s o e l d d f s o h r i p a p c e c d o u t n o t t o h f e t h U e n i T te r d e as S u ta ry te s a n is d p p a u id rpartment ment for by drafts on the Reserve banks. In this way an increase takes places in member January 1932___ 275 107 121 353 76 banks' reserve balances. It has not been part January 1933 .__ __ 275 138 121 357 114 January 1936 _ _ 260 123 200 401 115 of the task of the Exchange Stabilization Fund to undertake open-market operations The American Gold Reserve Act, approved affecting the internal credit position of the by the President on January 31,1934, author- market, and the amount of securities held by ized the Secretary of the Treasury for twothe Federal Reserve banks has not changed years (which the President might extend for since the dollar was devalued at the begina further year) to deal in gold and foreign ning of 1934. It will be seen from the followexchange and such other instruments of ing table that $3,020,000,000 have been added credit and securities as would be necessary to the gold stock from February 1934 to Janfor the purpose of stabilizing the exchange uary 1936 and that member banks' reserve value of the dollar. At the same time an Ex-balances have gone up by nearly the same change Stabilization Fund of $2,000,000,000 figure, the increase in the money in circulawas established out of the book profits on thetion corresponding approximately to the gold reserves accruing to the Government amount of silver certificates issued. from the devaluation of the dollar by 40.94 percent. In the daily statements of the [In millions of dollars] Treasury Department $1,800,000,000 are g s S h o ta o ld b w i n l h i o z a a l s d t i i a o n n g li s a F b u i u l n n i d t d y e . r " a g th a T i e n h s h e t e a t r h e d e m in G a g i o n " v i E n e g x rn c m $ h 2 a e 0 n n 0 g t , ' e s - st U oc . ( k A S a v . n e m d f r i a o g r g n u e e e r l e a t o s a t ) e f r d y d a i g t i o e ly l m d s G m H o c f u o o e v r l U n i d e t t . i i r s n e S n e g s - . - M s t g t a o o o r n l c y d k e- M l c a i o t r i i n c n o u e n y - re M T s o e e t r m a v l e b e b r a E l b a x a n c n c e k e ss s 000,000 are entered on the general account (the "General Fund") of the Treasury De- February 1934 _ 2,432 7,138 5,339 2,822 891 January 1936 2,430 10,158 5,757 5,780 3,021 partment in such a way that transactions Changes over the undertaken by means of this allocation cannot period -2 +3, 020 +418 +2, 958 +2,130 be specifically traced; the dollars may thus be kept in a form readily available for mone- By a proclamation dated January 10, 1936, tary operations on the gold and exchange the President extended for a further year the markets. As, however, the United States life of the Exchange Stabilization Fund and dollar was re-linked to gold at the same time the corresponding powers of the Secretary as the Fund was instituted, there has been no of the Treasury. need for the Fund to intervene regularly In Belgium likewise an Exchange Equalizato prevent the gold value of the dollar from tion Fund was established at the time of the fluctuating. Only on certain occasions, when devaluation of the currency in April 1935. the foreign exchange markets have been in Although the belga was devalued at a rate a particularly strained condition, has the corresponding to a depreciation from the old Fund intervened and then, for example, pro- parity of 28 percent, giving a gold content vided dollars on foreign markets against gold of 0.150632 grammes fine, the gold reserve or foreign currencies. of the National Bank was provisionally re- On February 11, 1935, the Secretary of the valued on the basis of a rate of depreciation Treasury announced that the Fund had been of 25 percent. Out of the book profits thus employed in the foreign exchange markets realized 1,125,000,000 Belgian francs were since the 14th of the previous month. That set aside for the Equalization Fund. The was at a period when the dollar was excep-value of the currency was however maintionally strong, the United States receiving tained in the ordinary course of business no less than $149,000,000 in gold in January without any spBcial intervention on the part Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1936 FEDERAL RESERVE BULLETIN 435 of the Fund, the National Bank having con- legislation is more or less suspended and new formed its operations immediately to the new situations arise the political authorities begold parity. In his address to the share- come more preoccupied with monetary isholders on February 24, 1936, the Governor sues. But once the basic monetary principles of the National Bank declared that at the shall have been fixed again and a reasonable gold points calculated on the new basis the degree of continuity assured, the temporary bank had always been and was always ready circumstances will have ceased which gave to buy and sell either gold or gold currencies. rise to the introduction of dual responsibility The choice between these modalities, he said, in these matters. was left by the law of October 1926 to the When in January 1936 the President of bank. But in both cases the effect was the the United States extended the life of the same: either the bank bought or sold gold Exchange Stabilization Fund for another to the market, or the bank undertook itself year, he gave as his reason for doing so that to receive or deliver the metal by a direct the situation which had called for the estabtransaction with the foreign central bank lishment of the Fund had become worse and concerned. On April 1,1936, the devaluation presented conditions of instability for interof the belga by 28 percent was made defini- national commerce and exchanges. Although tive and the gold revalued on this basis. The in the re-establishment of de facto exchange Exchange Equalization Fund was wound up stability the last twelve months certainly and its assets, as well as those realized by the compare favorably with previous years, it new revaluation of the bank's gold holding, must be admitted that, if account be taken were taken over by the Treasury. of the extent to which real monetary confi- In the summer of 1935 an Exchange Fund dence has been regained, no progress but of the Dominion Government was instituted rather a setback has occurred, the past year in Canada. It was provided with $63,000,000 being characterized by widespread fears of out of the profits which the government ob- radical changes in currency values. Symptotained from the revaluation of the gold hold- matic of the disturbed conditions have been ings at the market value of gold, i. e. circa the extensive movements of balances from $35 per ounce, revaluation being made al- one country to another and also the wide though the Canadian dollar had not been spreads of forward rates, which register in officially devalued. The Fund bought Domin- a very sensitive way the shifting phases of ion bonds from the Bank of panada and also monetary sentiment. holds short-term Treasury bills and amounts Outstanding among the monetary events on deposit at the bank. Future profits or of 1935 have been the changes in the curlosses on gold held by the Bank of Canada rency systems of the silver standard counwill be credited or debited to the account tries, China, Manchukuo and Hong Kong. of the Exchange Fund. The Silver Purchase Act of June 1934 de- The various exchange funds which have clared it to be the policy of the United States been instituted in recent years thus differ to increase the proportion of silver to gold widely both as regards their assets and the in the monetary stocks of the country with functions they perform. As far as can be seen the ultimate objective of having and maintheir operations are of a kind that falls prop- taining one-quarter of the monetary value erly within the normal field of action of cen- of such stocks in silver. In pursuance of this tral banks. Such temporary arrangements policy the U. S. Treasury bought silver in may be used to provide against exceptional large mounts at rising prices from August risks or as a method of furnishing extraordi- 1934 to the spring of 1935, after which the nary resources (in the form of securities, bal- price again declined. ances or gold) for intervention on the mar- For China the increase in the price of silkets. Under these arrangements government ver meant an appreciation of the national departments have become connected with the currency at a time when the currencies of formation of exchange policy in a period of other countries, especially those with which great monetary disturbance; the central China maintained the closest commercial banks continue to be the agencies which contact, were depreciated. Faced with this handle the actual operations on the exchange situation, the Chinese Government in Octomarkets. ber 1934 imposed a sliding-scale duty on sil- At a time when the ordinary currency ver exports to provide a margin of freedom Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

436 FEDERAL RESERVE BULLETIN JUNE 1936 for exchange management. After some wide franc). With the rise in the price of silver initial variations, the duty was maintained the Chinese dollar appreciated and in May within limits of 13^-14^ percent; for the 1935 about ll1/^ dollars sufficed to obtain following four months (November 1934-Feb- £1. After the change in the system introruary 1935), during which the price of silver duced in the late autumn of 1935, the value was fairly stable, the imposition of this duty of the Chinese currency again fell and has kept the "official" exchange rate of the Chi- since been kept at a rate of about I6V2 dolnese dollar about 14 percent below the silver lars to £1. If the present value of the Chiparity, while the Shanghai exchange rate nese currency is calculated as a percentage (the free rate quoted on the market) was as of its average value in 1929, the Chinese a rule a few points percent lower. Towards dollar will be found to have depreciated by the end of February 1935 the price of silver 58 percent in terms of gold as compared began to rise and as the duty remained the with a depreciation of 40 percent of the Britsame the "official" rate moved with the price ish pound and the United States dollar and of silver. The Shanghai exchange rate, a depreciation of 65^ percent of the Japawhich was of importance for current com- nese yen—the three currencies with which mercial and financial transactions was, how- Chinese foreign trade is mostly concerned. ever, held fairly stable through intervention At the time of writing it is not clear to by the Chinese Exchange Committee, a gov- what extent the new monetary arrangement ernment institution acting in close coopera- adopted in China in the autumn of 1935 has tion with the banks. Exports of silver were really been made effective in the managediscouraged by arrangement with the banks ment of the exchange rate and in the interand the value of the market rate was in fact nal organization. The problems connected almost completely divorced from the price of with the organization of a central bank silver. This phase lasted to October 1935, equipped to undertake the management of when there was a sharp decline in the ex- the currency, to accustom the people to paychange rate on rumors of devaluation. ments in bank-notes instead of in specie, to On November 4, 1935, the Government cut regulate the internal credit volume and to what remained of its link with silver, made make the reforms effective over an area inthe notes of the Central Bank of China, the habited by hundreds of millions of people, Bank of China and Bank of Communications are indeed formidable. The first task to legal tender, and charged the Chinese Ex- engage the attention of the authorities has change Committee with the task of managing been to build up a reserve in gold and foreign the exchange rate. Silver, whether in bars or currencies to serve as a basis for exchange coin, was to be handed over to the Government management. In November 1935 an aragainst payment of the nominal value in rangement was made under which the United notes. A month later, on December 5, Hong States Government purchased 50,000,000 Kong adopted a similar policy of a managed ounces of silver directly from China for inconvertible currency, the rate of the Hong $32,500,000, of which $10,000,000 were taken Kong dollar being in fact maintained fairly in gold by the Central Bank of China. stable in relation to the Shanghai dollar, The silver policy of the United States with a premium of about 7 percent over the caused dislocation of Eastern exchanges and latter. Already earlier in the year the silver made China, Hong Kong and Manchukuo basis had been abandoned in Manchukuo, give up their age-long link with silver—a after a period of two years, 1933 and 1934, venture of which the end has not yet been during which the exchange rate of the yuan seen. The American purchases of silver on had been maintained stable in relation to foreign markets contributed, on the other the Chinese dollar. From the beginning of hand, in a year of exceptionally large move- 1935 the yuan was allowed to depreciate in ments of funds, to the settlement of the terms of silver and since September 1935 has accounts between the United States and the been maintained at par with the Japanese rest of the world. In 1935 net silver imports yen. into the United States had a declared value From 1932 to 1934, fifteen to sixteen Chi- of $336,000,000, compared with an export nese dollars had been equal to one pound surplus of merchandise (other than silver (which, incidentally, gave the Chinese dollar and gold) amounting to $235,000,000. In about the same exchange value as the Swiss the same year $1,739,000,000 net in gold Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

437 FEDERAL RESERVE BULLETIN JUNE 1936 were imported; in 1933 and 1934 there were Equalization Account also added considerperiods during which the traffic of gold ably to its holdings. across the Atlantic was more intense than (1) The supply of gold.—Estimates of at any time in 1935, but never before has sothe world's annual gold production are neceslarge an amount moved from Europe to the sarily somewhat approximate, as complete United States in a single year. This one- data are lacking for a number of countries. way movement was not caused by any dis- But one thing is certain, the production of equilibrium in the current account of the gold continues to rise at a pace more rapid balance of payments but constituted trans- than ever before. Since 1929, i. e. in the fers of funds made for a number of reasons; course of the past six years, the output of part represented the home-taking of funds gold has risen by fully 50 percent and by no owned by Americans (e. g. transfer of de- less than 150 percent if valued in currencies posits from foreign to domestic banks) ; which have depreciated by 40 percent (as part consisted of money seeking security out- e. g. the dollar at the legal price of $35 per side Europe; part went to participate in the ounce and sterling with a gold price in Lonrise on the New York stock exchange; and don of slightly above 140/- per ounce). The part was transmitted to increase balances following table shows the world's gold prowith New York banks at a time of trade duction in 1915, the record year before 1932, recovery. These movements, all of them on and each year from 1923 onwards. capital account, have dominated the exchange position and overshadowed the influence of merchandise trade and other items on the Other South U.S.A.i Canada U. S. coun- Total for the world income account of the balance of payments Africa Qb. XTV?. tries which are more closely connected with the Year relative levels of costs and prices in the dif- In millions ferent countries. In thousands of ounces of fine gold of Swiss francs THE SUPPLY AND MOVEMENTS OF GOLD 19152 9,096 4,888 918 1,546 6,146 22, 594 2,420 1923 9,149 2,503 1,233 438 4,463 17, 786 1,905 In 1935 the world's gold production not 1924 9,575 2,529 1,525 594 4,827 19, 050 2,041 1925 9,598 2,412 1,736 693 4,592 19, 031 2,039 only attained a new high figure but the 1926 9,955 2,335 1,754 895 4,430 19, 369 2,075 1927 10,122 2,197 1,853 810 4,464 19,446 2,083 absolute increase in the year was the largest 1928 10,354 2,233 1,891 899 4,206 19, 583 2,098 ever recorded; and although the amount 1929 10, 412 2,208 1,928 1,085 4,040 19, 673 2,108 1930 10, 716 2,286 2,102 1,434 4,184 20,722 2,220 released by China, India and Egypt showed 1931 10, 878 2,396 2,694 1,701 4,702 22,371 2,397 1932 11, 559 2,449 3,044 1,990 5,224 24, 266 2,600 a declining tendency (amounting to only 1933 11,014 2,537 2,949 2,667 6,347 25, 514 2,733 half of the peak year of 1932), the com- 1934 10,480 2,916 2,965 4,263 6,715 27,339 2,929 1935 10, 773 3,619 3,280 5,650 7,356 30, 678 3,287 bined supply of new gold from current production and the East was slightly higher 1 Including the Philippines. than in 1934. Again a part of the new gold 2 Kecord year before the years 1932-1935. available was absorbed by fresh private Although the Union of South Africa is still hoarding, for the increase in the gold by far the most important gold producing hoarded by private individuals and firms area in the world, the South African proresident on the continent of Europe was onlyduction has not kept pace with the expansion partially counterbalanced by reductions on in other countries. There was even a decline other accounts as, for instance, in the amount in output in 1933 and again in 1934; a slight held in London by American individuals and recovery in 1935 was not enough to bring firms. Large gold losses were sustained by the figure back to the 1932 level. But this the central banks of France, Holland, Italy comparatively even tenor of production does and Switzerland. The largest recipient of not mean that the gold mining industry in gold was the Treasury Department of the South Africa has stood still, for a marked de- United States which received an amount not velopment has in fact taken place. When the far short of double the year's total produc- price of gold rose in terms of the South Afrition. The gold reserves of the Bank of can currency, it became possible to exploit England and of several other central banks, ore of lower grades, particularly large tonparticularly in the sterling area, were nages of ore which had been exposed in prestrengthened, and the British Exchange vious years but could not be milled profitably Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

438 FEDERAL RESERVE BULLETIN JUNE 1936 at the price then obtainable for the metal. With the exception of Colombia, the out- In its report for 1935 the Union Corporation put of gold seems to have been maintained of South Africa explained that the addition or increased all round during the year. The of this low grade ore to the ore reserves jus- increase certainly helped the producing countified an increase in milling capacity, but this tries in the promotion of domestic recovery involved in most cases an extension of re- and in meeting foreign liabilities; it had, duction works and in some cases the sinking however, a beneficial effect also in a more of new shafts—both of which took time. general way, for it meant a strengthening The immediate effect, therefore, of the of the purchasing power of the world availincrease in the price of gold was a fall in able especially for purchases on foreign marthe grade of ore treated and a consequent kets and thus tended to facilitate expansion fall in the production of gold on the Rand. of trade. But the Union Corporation estimates that by There was a decline in 1935 in the amount 1937 the increased capacity of the plant and of gold provided by the East from the rethe bringing into production of new mines lease of hoards. Shipments from India were will more than offset the reduction in output still important, but very little came from due to the milling of low grade ore, and that China either directly or smuggled by way thereafter production in the Union of South of Hong Kong. Even a reversal of the cur- Africa should steadily expand and may pos-rent set in at the end of the year when the sibly approach the 15,000,000 ounce mark Chinese Government obtained $10,000,000 in within the next five or six years. gold from the United States Government as The marked increase in U. S. S. R. gold pro- part payment for a sale of silver. India's duction which began in 1928-29 continued exports will presumably continue to decline in 1935, thus confirming the U.S.S.R/s posi- and the country might become a purchaser tion in the second place among the gold pro- of gold if economic conditions showed a deducing countries, and recalling the fact that cided improvement. The following table in the first half of the 19th century, before shows the net gold exports from India, the discoveries in California, Russia was the China and Hong Kong in the period 1931 largest producer of gold in the world. The to 1935. production in 1935 was seven times as large [In millions of Swiss francs] as in 1927, very great efforts having been made to modernize the technical apparatus Net gold exports India China Hong Kong Total and make new discoveries. The Chief of the Soviet Trust concerned with gold production 1931 477 54 63 594 1932 1,014 118 59 1,191 announced that the gold industry was the 1933 653 74 100 827 first to complete its program under the Five 1934 _ 706 54 68 828 1935 495 43 34 572 Year Plan. He also estimated that by 1940 Total 3,345 343 324 4,012 U. S. S. R. production would reach the present level of the Union of South Africa, i. e. between 10,000,000 and 11,000,000 ounces, The increase which took place in the proequal in value to about 1,200,000,000 Swiss duction of gold during 1935 was just suffifrancs. cient to counterbalance the decline in the Both in the United States and in Canada shipments from the East, with the result gold production has advanced well in the that Sw. frs. 3,860,000,000 of new gold, course of the year; in the latter country the rather more than in 1934, became available Government successfully carried out a pro- to meet the demand for monetary and other gram of geological research in the regions purposes. where it was expected to find gold. The In Italy large collections of gold were number of Canadian gold mining enterprises made in the late autumn of 1935, the public rose from 32 at the end of 1931 to 155 inbeing actuated by patriotic motives; but the 1935 and their daily operating capacity from amount obtained has not been published and 16,000 to 29,000 tons of ore. It is not so could barely have been available for monemuch large mining concerns as a number of tary uses at the end of 1935. small proprietors that have played a pre- It has not been necessary in recent years, ponderating part in the expansion of pro- prior to 1935, to make allowance for indusduction. trial requirements, for these have been more Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

439 JUNE 1936 FEDERAL RESERVE BULLETIN than met by the recovery of old gold from exchange stability during the past year. But the public. In some countries, notably Great against these reductions must be set the con- Britain, it would appear that in 1935 also tinued increase in hoarding by individuals the amount of old gold available has been and firms resident on the continent of Europe. sufficient to supply the needs of industry On balance there was undoubtedly a net inbut it is known that, for instance in France crease in the total amount of gold privately and a number of other countries, this has hoarded, but the increase was probably lower not been the case. On balance there would than in any of the previous four years. (There seem to have been a net consumption of gold has, however, been an intensification of priin industry which may be tentatively esti- vate hoarding in the first quarter of 1936, but mated at about Sw. frs. 160,000,000, repre- this period cannot yet be fully reviewed.) senting about 5 percent of current gold pro- A certain amount of gold would also apduction. If the net amount of gold consumed pear to have been taken by central banks by industry be deducted from the supply of and kept outside their statutory gold renew gold from the mines and the East, there serves, being included for instance in the remains a net amount of approximately Sw. foreign exchange holdings or "miscellaneous frs. 3,700,000,000 available for monetary assets." A large part of the Sw. frs. 2,000,purposes. 000,000 in gold mentioned above has, how- Where has this gold gone? About Sw. frs. ever, been acquired by the special exchange 1,700,000,000 represent a net increase in the funds. The gold held by these funds must aggregate reported gold holdings of banks of course be said to serve a monetary purof issue and governments. As to the destina- pose for it is specifically employed to provide tion of the remainder, amounting to Sw. frs. for intervention on the markets with a view 2,000,000,000, no exact information is avail- to ironing out fluctuations in the exchange able, but it is possible to give at least some and is thus available for the settlement of indication of the main direction this gold foreign balances. The British Exchange has taken, whether it has gone to swell pri- Equalization Account in particular has added vate hoards or been absorbed into the stocks considerably to its gold holdings during the of exchange funds, or found its way into the year, while the foreign liabilities of the Longold holdings which several central banks don market have also risen though not in maintain outside their reported reserves. the same proportion. As regards hoarding, the year has been Taking all these factors into consideration characterized by a number of diverse move- it appears probable that the total monetary ments. There have been certain notable re- gold stock (including the exchange funds) ductions in the amounts held in hoards. increased by about 5 percent during the year, When the Swiss market became exposed to And the total gold production of the year an acute strain of foreign withdrawals in increased by 12 percent. These are very the spring of 1935, the private banks em- rapid rates of increase and, as has been ployed gold in their possession to procure mentioned above, further rises in output are liquid funds. Americans who particularly expected within the next few years both in in 1933 had acquired gold in London and South Africa and in the U.S.S.R. What elsewhere sold a large part of this gold in effect this mounting gold production may the course of 1935 and repatriated the pro- have on prices is a question already widely ceeds, actuated partly by fears of conflicts discussed. There are a number of indicabetween European powers, partly by a grow- tions which all appear to point in the same ing belief in the stability of the dollar and direction. Firstly, the slowing down of the by a desire to invest their capital in securi- annual increase in population in many counties on the American stock exchanges to tries which began during the war is now profit by the rising quotations. Further- affecting the active population, persons above more, large international trading concerns sixteen years of age. Secondly, a policy of which had begun to keep a substantial part cheap and plentiful credits is being applied of their cash in gold or to hold gold as a wherever possible and it is foreseen that counterpart to commercial transactions as an where interest rates have not yet fallen reinsurance against losses, seem to have kept ductions will be made as soon as market less actual gold and dealt more in curren- conditions permit. Thirdly, a great many cies, taking advantage of the greater de facto governments are spending for armaments Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

440 FEDERAL RESERVE BULLETIN JUNE 1936 and other purposes more than they can well due to the conversions of their own holdings afford. Fourthly, the starting point for a of foreign exchange into gold; at the same rise in prices, the present price level as cal- time, the private banks of these countries culated on a gold basis, is particularly low incalled for repayment outstanding credits Great Britain, the United States and other which had previously been granted abroad; countries of which the currencies have de- moreover, floating funds in search of securpreciated. In spite of the upward tendency ity were attracted to the countries whose of prices in 1935 the level when measured currencies remained on gold and were backed on a gold basis still remains well below the by particularly large monetary reserves. lowest point ever reached from 1800 to 1930.With regard to this last factor there was, Assuming that about the present price of however, a change of sentiment in the sumgold in sterling and the present gold value mer of 1933 caused by the clash of opinions of the dollar are retained, there is a likeli- at the Monetary and Economic Conference hood of a continued rise in commodity prices held in London, and in the autumn by a on the British and American markets. Such number of concurrent events, including the a rise will no doubt tend to facilitate a gen- inauguration of the gold buying policy in eral return to equilibrium in the near future the United States, budgetary difficulties in and should be welcomed from this point of France and pronounced weakness of sterling. view. But developments need watching, for Foreign funds which had been invested in a marked rise in prices is not an unmixed the markets of the gold bloc countries were blessing but brings its own dangers and withdrawn and their central banks sustained difficulties. losses of gold reserves. In 1934, on the other (2) The flow of gold between monetary hand, the Paris market saw a reversal of the centers.—Apart from the distribution of new current; the French public began to bring gold from current production and the East, home funds which had in some cases been the outstanding movement during 1935 washeld abroad for years, and this repatriation the very substantial loss of gold sustained by was at times on a very large scale. The the central banks in France, Holland and Bank of France gained gold, but both the Switzerland. For France this loss contrasts Nederlandsche Bank and the Swiss National sharply with the large inflow which occurred Bank Jost on balance, although the amounts in the previous year when the Bank of were inconsiderable. But in the following France was, after the United States Treas- year, 1935, the strain on the gold bloc counury, the biggest recipient of gold. Indeed, tries became very acute, first after the dethe various changes in the direction of the valuation of the belga on April 1 and again gold current to and from the gold bloc coun- in the summer and late autumn. As far as tries in the period 1931 to 1935 clearly illus- the Swiss market was concerned, the outtrate some of the main forces which in that flow was largely the result of withdrawals period influenced the transfer of funds from by foreigners who in previous years had one market to another. made investments in Swiss securities or kept money on deposit in Swiss banks, but the foreign balances withdrawn from the French and Dutch markets were not of a magnitude Bank of France Nederlandsche Swiss National ' Bank Bank to explain the outward movement of funds; in fact in both these cases the main move- Gold reserves (in millions) Total c Y h e a a n r g ly e Total c Y h e a a n r g ly e Total c Y h e a a n r g ly e ment was the result of an export of home capital by nationals. Throughout the period French francs Guilders Swiss francs since 1930 the gold movements to and from France, Holland and Switzerland have been End of: almost entirely due to capital movements 1930 53, 578 426 713 1931 68, 863 +15, 285 887 +461 2,347 +1, 634 and not to any considerable surplus or deficit 1932 83,017 +14,154 1,033 +146 2,471 + 124 in the current account of the balances of 1933 77, 098 - 5,919 922 -111 1,998 - 473 1934 82,124 + 5,026 842 - 80 1,910 - 88 payments. 1935 66, 296 -15,828 643 -199 1,389 - 521 Poland, which until April 1936 remained In 1931 and 1932 the central banks of one of the few countries whose currency was France, Holland and Switzerland gained maintained at the gold parity without legal gold on a very large scale. This was partly exchange restrictions, also felt the strain in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

441 JUNE 1936 FEDERAL RESERVE BULLETIN 1935 as is evidenced by the net export of favor of Germany on these clearing accounts gold. The Annual Report of the Bank Polski is not in most cases freely available. for 1935 explains that the reduction in the Further, 20 percent of German exports was gold reserves from 503,000,000 to 444,000,- offset through private clearings or by so- 000 zlotys in the course of the year was called ASKI-transactions. Only 20 percent partly due to hoarding of gold coins inter- of exports were made for "free devisen" of nally in the early summer and again in the which one-half was earmarked against standautumn, and partly to a shrinkage in the still and other interest payments, so that export surplus (from Zl. 177,000,000 in 1934 only 10 percent remained to meet import to 66,000,000 in 1935), which was felt the surpluses from countries with which no more as a portion of the amounts due in clearing existed and to cover amongst other payment of exports was immobilized in coun- foreign payments the expenses of German tries with exchange restrictions. The gold official representatives abroad, for example. reserves of the Banca d'ltalia fell from Now, according to German customs statistics 5,811,000,000 lire at the end of 1934 to gold imports in 1935 exceeded exports by 3,027,000,000 lire at the end of 1935, the about RM 100,000,000, while the Reichsbank having to provide foreign exchange for bank's gold holding abroad remained pracpayments largely connected with the mili- tically unchanged. A certain part of this tary campaign in Africa. It should be ex- import of gold may have been on foreign plained that the gold collected from the pub- account but that part on German account, lic in the late autumn is not incorporated in in so far as it was not used for industrial the holdings of the Banca d'ltalia but is purposes, is understood to be kept as a spemaintained in a separate fund under the cial reserve against certain foreign commitownership of the Minister of Finance. ments already incurred, particularly those The gold reserves of the Reichsbank of the "Konversionskasse." throughout the year remained at the low Among other central banks which regislevel of less than RM 100,000,000 which had tered a decline in their gold reserves, Nabeen reached in the course of 1934. After a tionalbanken i Kj^benhavn utilized 15,000,slight improvement in the summer of 1935, 000 kroner for the repayment of an outthe reserves again dropped in the autumn, standing foreign credit and the Bank of Java the net change over the year being insignifi- drew on its reserves to meet foreign obligacant. The Reichsbank explains in its An- tions ; but an improvement set in at the end nual Report that in the circumstances no of the year under the influence of the realleviation in exchange control could be covery in the prices of overseas products made, but that it was necessary strictly to from which the Dutch East Indies naturally adhere to the principles of the "New Plan," benefited. according to which allocations of foreign The continent of Europe has lagged behind exchange would be made only to the extent the rest of the world in the recovery of busithat exchange became available. By strict ness and particularly in the revival of forcontrol the total imports into Germany were eign trade, this retardation being reflected reduced from RM 4,451,000,000 in 1934 to also in the gold statistics. While the central 4,159,000,000 in 1935 and, as at the same banks in several countries on the continent time exports rose from RM 4,167,000,000 of Europe suffered a loss of reserves, not one to 4,270,000,000, the import surplus of RM of them, apart from Soviet Russia, was able 284,000,000 in 1934 was converted into an to add appreciably to its gold stock. Of parexport surplus of RM 111,000,000 in 1935. ticular interest are the developments in These figures cannot of course be related Belgium. In the first quarter of the year directly to the gold and devised position of the National Bank of Belgium drew on its the country as other items in the balance of gold reserves to provide the exchange repayments must be taken into account and no quired to meet a strong outflow of funds. estimate for 1935 has yet been published. After the devaluation on April 1, 1935, there It is interesting, however, to analyse the for- was an almost immediate return movement eign trade figures and information is avail- of amounts previously expatriated and an able to show that in the year 1935 60 per- influx of other funds of a more temporary cent of German exports passed through nature. The maximum gold holding was clearing accounts. Any export surplus in reached in June, since when a slight decline Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

442 FEDERAL RESERVE BULLETIN JUNE 1936 has occurred, presumably connected with the domestic production, return of coins and gradual withdrawal of some foreign-owned similar sources, while $1,739,000,000 came balances. At the end of the year the gold from net gold imports. In 1935 the United reserve, as shown in the balance sheet of the States also imported $336,000,000 of silver National Bank was only slightly above what and the net imports of gold and silver toit had been at the end of 1934. As to such gether thus amounted to $2,075,000,000. moderate increases in reserves as have oc- This extraordinarily large import of precious curred, it should be mentioned that the Na- metals does not reflect any excess amount tional Bank of Rumania has acquired some due to the United States on the current acgold from domestic production, and the Na- count of the balance of payments; it is espetional Bank of Yugoslavia has also some- cially significant that in recent years imports what strengthened its gold holding. of merchandise have shown a steady in- Besides the United States and Great Brit- crease : ain, mentioned below, a number of other [In millions of dollars] countries have appreciably increased their gold holdings: among them are Norway and U. S. A. foreign commerce 1932 1933 1934 1935 Sweden, and outside Europe, Japan and South Africa. In 1935 Japan had an export Imports of merchandise 1,323 1,450 1,655 2,04 surplus, not large in itself (only 27,000,000 Exports of merchandise 1,611 1,675 2,133 2,282 yen) but the first the country has had since Export surplus 288 225 478 235 the war. As regards South Africa, it should Net imports (+) or exports (—) of be recalled that in the course of 1934 and Ne g t o l i d mports of silver + -4 46 6 + -1 7 4 3 1 • + 4 -1,1 8 34 6 4 4- - 1, 3 73 3 9 6 the first quarter of 1935 the Reserve Bank had increased its gold stock considerably Recent estimates of the balance of payand reduced its holdings of British Treasury ments tend to show that the remaining exbills. In the remaining three quarters of port surplus and the income receipts from 1935 no further amounts were added to the foreign investments are more than countergold stocks; on the contrary, a certain reduction took place, but on the year the gold balanced by tourist expenditure abroad, imreserve was higher by £3,500,000. migrants' remittances and freight payments to foreign vessels. The import of gold and The gold reserves of the United States increased during every month in 1935, the silver in 1935 appears to result solely from total increase over the year being $1,887,- movements on capital account. These move- 000,000 or Sw. frs. 5,780,000,000. The mag- ments, to which reference has been made nitude of this figure in relation to current in other parts of this report, include the production, recoveries from the East and repatriation of American funds from Gerthe aggregate of net gold losses of the Bank many (e. g. under Standstill agreements) of France, the Nederlandsche Bank and the and from London and Paris; the increase of Swiss National Bank, is shown for 1935 by European balances in American banks; and the following comparisons: the transfer of large amounts for investment in the New York stock market. Millions of Swiss francs In Great Britain the gold reserves of the Increase of U. S. gold holdings 5,780 Bank of England, which are valued at the New gold: Current gold production.... 3,290 old parity, increased during the year by Gold recovered from the East 570 3,860 £7,800,000, which at the present value of Aggregate of net gold losses of the sterling corresponds to about £13,000,000. Bank of France, the Nederlandsche It can be concluded, however, that in addi- Bank and the Swiss National Bank. . 4,160 tion the Exchange Equalization Account in- The United States thus absorbed in 1935 creased its gold holdings by an appreciable an amount equal to the whole supply of new amount. Net imports of gold into Great gold from current production and the East Britain in 1935 had a value of £70,000,000 plus nearly half of the aggregate net gold at the current gold price. The Board of losses of the Bank of France, the Neder- Trade in its carefully worded comment on landsche Bank and the Swiss National Bank. this figure explained that "as in the two Of the increase in the United States gold previous years the net inward movement of reserves $148,000,000 were obtained from gold during 1935 was no doubt again due Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

443 JUNE 1936 FEDERAL RESERVE BULLETIN in part to gold being sent to this country Over the year the foreign liabilities thus and held here on foreign account though rose to a certain extent in London and conperhaps not to the same extent as in 1933 siderably in New York, but the increases in and 1934." An increasing proportion of the the gold reserves of these two centers were net imports has thus been available for pur- more than sufficient to take care of the new chases on British account, i. e. for the Bank foreign commitments. Movements on capital of England and the Exchange Equalization account continue to overshadow the inter- Account. It is of interest to relate this con- national transactions arising out of merclusion to the world figure, already given chandise trade, interest payments and similar above, of the amount of gold which "dis- items. In 1935 only a minor part of the appeared" in 1935. The total supply of gold capital movements was caused by transfers from current production and the East was of funds already held abroad; the most im- Sw. frs. 3,860,000,000, and if industrial re- portant movement represented an expatriaquirements of about Sw. frs. 160,000,000 be tion of home capital: British, French, Dutch, deducted there remain Sw. frs. 3,700,000,- Swiss and other European investors bought 000. Now the reported reserves of banks American securities and further transfers of issue and governments increased by Sw. were also made from the continent to Lonfrs. 1,700,000,000, leaving an amount of Sw. don. In the course of the first quarter of frs. 2,000,000,000 or about £130,000,000 1936 the active buying of securities in New sterling to be accounted for in other ways. York for European account diminished, but Part of this gold, as has been explained the strain on the French market caused by above, was absorbed by fresh private hoard- the outflow of funds continued unabated. ing, and part went into the holdings of cen- Obviously movements of capital funds are tral banks outside reported reserves, but a difficult to foresee as they depend not only large amount must have been taken by gov- on financial and economic considerations but ernment exchange funds and especially the are largely influenced by the psychological British Exchange Equalization Account. disposition of the owners of the capital. An The increase in the reserves of the British important point to retain is that only in the monetary authorities are the net result of a case of a few countries has disequilibrium number of diverse movements. There was, on the current account of the balance of payon the one hand, a surplus on the current ments given rise to extraordinary shipments account of the balance of payments estimated of gold. Should the movement of capital by the Board of Trade at £37,000,000, and funds slow down, the effect would be felt a further surplus of something like the same as a distinct relief from the tension still amount derived from the repayments on for- affecting the gold position. Indeed, the cureign loans over and above new foreign is- rent supply of gold from the mines is already sues; against this must be set, however, an so large and holds out such a prospect of amount not known exactly but evidently further increases, that within a short time fairly substantial, representing private in- the world may be faced, not with scarcity vestments abroad, particularly in American but with an abundance of gold greater than securities. In relation to the United States has ever before been experienced. there was further a transfer of balances to The amount of gold "earmarked" for the the New York market; but this decrease in account of central banks does not appear in foreign liabilities was more than counter- the balance sheet of the Bank for Internabalanced by an increase in the amount of tional Settlements. At March 31, 1936, it funds held in London by countries of the totalled the equivalent of 268,000,000 Swiss sterling area and the continent of Europe. francs; at March 31, 1935, the correspond- Although a certain proportion of the con- ing figure was 272,000,000. But here again tinental funds went to reduce sterling liabili- a comparison between the two figures gives ties rather than accumulate sterling assets, no indication of the volume of the transacthere would seem to have been on balance a tions registered during the past financial net increase in the foreign liabilities of the year. In point of fact the amount of gold London market, but this increase would ap- held in this form during the year was, on an pear to have been well within the additions average, 30 percent greater than that held to the gold stocks of the Bank of England during the preceding year; at a certain and the Exchange Equalization Account. moment the figure for deposits of this nature Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

444 FEDERAL RESERVE BULLETIN JUNE 1936 even exceeded 300,000,000 Swiss francs, this tions as well as by depreciation of currencies being the highest figure ever recorded under in which the debts were due was shown by this heading. These deposits, like the bank's the estimates made at the Bank for Intergold holdings for its own account, are dis- national Settlements and published in earlier tributed over five or six different markets, reports: the aggregate of international inand this often makes it possible to dispense debtedness with maturity of not more than with the actual shipment of gold when the twelve months of European countries and depositor central banks wish to move their the United States was given at the equivadeposits from one market to another. In lent of 70,000,000,000 Swiss francs at the such circumstances physical shipment can end of 1930 and was estimated to have been frequently be avoided when we have received reduced to 32,000,000,000 Swiss francs in an order from another central bank for a 1933 and around 29,000,000,000 to 30,000,shipment in the opposite direction, providing 000,000 Swiss francs at the end of 1934. an offset for the. amount in question. If no In the course of 1935 European debtor such order has been received and we cannot countries continued to liquidate outstanding immediately procure one, the shipment of liabilities and substantial amounts which gold can be avoided wholly or in part by the had been held on deposit, particularly in use of the metallic reserves of the Bank English and French banks, were withdrawn itself, which then effects the offset for its by Americans but, on the other hand, forown account. eign deposits in American banks rose con- In this connection it may be said that our siderably while the total of foreign deposits operations in gold have developed in a more in London also increased somewhat. Fuller or less logical manner. The progressive information has been made available to the abandonment of the application of the gold Bank for International Settlements in 1935 exchange standard and the parallel reduction than in earlier years, but comparable figures of the foreign exchange reserves of central show that on balance there would appear to banks have led to the practice of voluntary have been little change in the aggregate or automatic intervention by the latter, in volume of short-term foreign debts outstandthe form of purchases, sales and transfers ing in the world, although the frozen position of gold on the various markets, for the pur- was, perhaps, somewhat reduced. pose of defending their exchanges or regulat- It must be remembered that an estimate ing their money markets. made at a particular moment of a total in The Bank for International Settlements fact continually changing in size and comwas formerly the center in which a certain position is in the nature of a snapshot which volume of the foreign exchange reserves in gives little idea of the movement or rate of question was administered and employed for turnover, important as a barometer of curintervention purposes. It is therefore only rent business activity and an essential factor natural that it should now be called upon from the monetary point of view. (It apto effect in gold operations which the central pears that only in Finland are turnover stabanks previously entrusted to it in foreign tistics available of the banks' accounts with exchange. foreign correspondents and of foreign bills.) The large number of orders received for Further, it is important to bear in mind operations in gold has made it easier to find that the above estimates cover commitments the counter-parties required by our corre- of a very heterogeneous character, including spondents. The greater advantages which we the following classes of funds: i) Merchanhave thus been able to offer them have led dise credits represented most typically by to an increasing recourse to our services and bills of exchange and reimbursement credthis has enabled us, in our turn, to extend its. In normal times this would constitute our facilities in a more regular manner and the bulk of short-term international financon more favorable terms. ing, fluctuating in volume according to the trend of world affairs, ii) Contractual credits generally represented by some docu- INTERNATIONAL SHORT-TERM INDEBTEDNESS ment. These are short-term "credits" in the The enormous reduction in the gold value strict sense of the word, being as a rule of international short-term indebtedness ef- granted for a certain period as between fected through repayments and consolida- banks or other institutions; the turnover Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN 445 JUNE 1936 of this class is now low since the imposi- Federal Reserve System. As explained in tion of standstill agreements and foreign the Federal Reserve Bulletin: "Statistics exchange restrictions, the total being subject collected have been revised from time to generally to a slow contraction as very little time in response to new needs or changes new lending of this nature is undertaken, in economic conditions and all new informaiii) Liabilities resulting from a deposit or tion of substantial accuracy and of public similar transactions and often represented interest has been made available to the pubby a mere book entry. They include all those lic." deposits and short-term employments made Using the published statistics of the memfor one reason or another largely in the im- ber banks and figures of foreign bank deportant money markets which as a counter- posits and contingent liabilities on bills purpart become debtors at short term. This chased for foreign correspondents of the class differs from that mentioned under (ii) Federal Reserve banks, figures have been largely on account of the initiative in the compiled to give a general idea of the movecreation of the debt and raises the technical ments of short-term foreign funds in the differences between a credit and a deposit. American market since the end of 1928; the This latter class has in recent years been sub- volume thus obtained varies from 30 to 50 ject to rapid changes of volume and turnover. percent of the total foreign short-term In addition to the transfers of funds fall- liabilities of the United States according to ing within these three categories, large the yearly data of the Department of Commovements of capital may occur in connec- merce. tion with transactions in long-term securi- The importance of the amounts previously ties. Foreign holdings of bonds and shares held by foreign central banks on the New represent for the market concerned poten- York market may be indicated by the fact tially a short-term liability about which it that in the middle of 1929 the acceptances is difficult to obtain adequate information. purchased by the Federal Reserve banks for The outstanding feature of international foreign correspondents rose above 40 percapital movements since January 1934, when cent of the total acceptances outstanding in the new gold value of the dollar was fixed, the market. This position has in recent has been a persistent flow of funds to the years been almost completely liquidated, United States: American capital has been central banks having either converted their repatriated (both funds lent to Europe in the post-war decade and funds transferred dollar holdings into gold or used them in the abroad in 1933 while uncertainty about the defense of their currencies. dollar prevailed) and more recently Euro- The reduction in the short-term foreign pean funds have been sent to the United assets which were built up in the post-war States partly for employment on Wall Street decade continued until the end of 1932; after and partly to build up new balances. Al- an interruption in the next two years the though a large turnover in the short-term trend was resumed in 1935. On the liabiliand foreign exchange markets has been ties side the withdrawal of money held in evident and the consequent flow of gold New York by foreign individuals and instito the United States has been a striking tutions went on at a rapid pace up to 1933; manifestation of this phenomenon, the move- in the following year a return movement ment has been only partly visible in the sta- began and during the year 1935 foreign tistics of short-term funds covering the funds in American banks doubled in volume various national markets. The explanation and reached the highest level since the spring is largely that funds which have moved of 1932. This increase of foreign funds in through the short-term and foreign ex- New York appears to consist not only of change markets have been employed to a resources of European banks and private great extent in long-term investments at concerns but also to include a certain amount each end of the chain. Nevertheless, it is of of flight capital. It is difficult to form an interest to follow this movement in so far opinion of the volume of European funds as it is revealed in short-term statistics, which has gone into the New York stock exespecially as weekly statistics are now pub- change, but there can be little doubt that lished covering over 90 percent of the for- this has been considerable, especially during eign deposits with all member banks of the the past year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

446 FEDERAL RESERVE BULLETIN JUNE 1936 London has in some respects been exposed creasing its gold holding, has accumulated to the same forces as the American market; some £30,000,000 since the spring of 1932, for example, central banks on the continent while the Reserve Bank and trading banks of Europe generally disposed after 1931 of of New Zealand held at the end of 1935 over the sterling assets which they previously £30,000,000 of sterling resources (whereas held. But the position of the London market in 1931 the country was borrowing in Lonas the financial center of a number of coun- don to cover maturing liabilities). Seen tries within and outside the British Com- from the London point of view, these accumonwealth of Nations made it subject to mulations represent an increase in the comspecial influences which showed their effect mitments of the market towards sterling both before and after the 1931 crisis. area countries. At the present time short- The reduction in central sterling resources term resources of the sterling area in London from over £100,000,000 at the end of 1928 constitute a great proportion of the shortto under £40,000,000 in the autumn of 1931 term foreign liabilities of that market. gives one reason for the strain on sterling During the year 1935 the flight of Euroexperienced during the years prior to the pean capital went largely through London en suspension of the gold standard and shows route for New York, sterling being a sort how London, as the financial center of a of conduit pipe through which these funds group of non-industrial countries, stands to passed; but part of the capital remained in feel directly the strain of a decline in the London, continental countries increased prices of primary products in countries sepa- their bank balances, bought securities on rated from it by thousands of miles. Yet the stock exchange and repaid sterling this picture does not tell the whole story, liabilities e. g. on commercial account. On for amongst other factors in the three years the other hand, American funds invested in up to the middle of 1931 Australia borrowed London and moneys previously held on dealmost £40,000,000 at short-term in London, posit and in gold moved towards the United while India raised nearly £30,000,000 of new States. As a whole, outside the sterling area money in the same year. Since 1931 there for which London is the natural center, the has been a rapid accumulation of central foreign short-term assets held in the market sterling resources to a level higher than at did not greatly increase in 1935. But durthe peak of 1928. It should be noted, how- ing the first quarter of 1936 there was a ever, that commercial banks in general tend large flow of continental funds to England, to hold less surplus sterling than in earlier only a minor stream passing on to the United years and to sell balances to the central States; the foreign short-term liabilities of bank as they arise. Further, special factors the London market thus rose rather steeply mustbe taken into account when judging the but the increase was fully covered by an position of each of these countries: India addition of corresponding assets in gold or has been able to pay off part of its maturing foreign claims. London debt out of accumulating balances; The position of the northern European South Africa has similarly repaid the whole members of the sterling area developed of its so-called war debt and has recently favorably during 1935. Thanks to a succesreplaced part of its sterling holding, which sion of years with an active merchandise had swollen to abnormal proportions early balance (which closely determines the balin 1934, by gold; Australian London funds ance of payments), Finland was able to were alimented by sales of gold but, on the make substantial repayments of her foreign other hand, the whole of the short-term debt liabilities, both at short and long term, and has been repurchased by the Commonwealth by the end of 1933 became for the first time Bank and is now held in addition to sterling a creditor on net foreign short-term account. (if gold and the sterling holdings of the During 1935, however, foreign short-term trading banks be also taken into account, assets were reduced by 250,000,000 Finnish the international reserves of Australia are marks in spite of an export surplus of 860,at present only half of the level of 1928- 000,000 Finnish marks; the explanation lies 1929). in the fact that besides a gold purchase of Similar movements of funds are shown by some 300,000,000 Finnish marks made by the other countries of the sterling area. For central bank, 870,000,000 Finnish marks of example, the Sveriges Riksbank, besides in- long-term bonds issued abroad were repat- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

447 JUNE 1936 FEDERAL RESERVE BULLETIN riated or redeemed. The current account of central bank's ratio. At the end of the year the Swedish balance of payments has yielded net foreign short-term liabilities of the banks a surplus since 1932, and in addition fairly were about 1,900,000,000 Belgian francs substantial amounts of Swedish foreign in- (compared with the National Bank's gold vestments have been liquidated and the pro- holding of over 17,000,000,000.) ceeds brought home. In 1935 the Sveriges In April and May 1935 the storm shifted Riksbank purchased gold for about Kr. 100,- over Switzerland, Holland and France and 000,000, but nevertheless its net claims abroad returned at intervals throughout the year, rose by Kr. 76,000,000 to a total of Kr. 629,- particularly in July, September (Holland) 000,000 (after touching Kr. 657,000,000 in and November (France). The incidents may September—the highest figure ever reached), be illustrated by the following table which while the net position of the Swedish private gives the gold losses ( —) or gains ( + ) of banks remained practically unchanged ac- the central banks each quarter from January cording to the official statistics. In Norway 1935 to March 1936: also the net foreign position of the joint stock [In millions of Swiss francs] banks shows little change on the year, but the foreign exchange holding of the Norges Bank 1935 1936 has risen from Kr. 57,000,000 to Kr. 112,- Quarterly movements 000,000, the portion "provisionally placed in of central gold reserves First Second Third Fourth First gold" increasing from Kr. 16,000,000 to Kr. 66,000,000. For Denmark the year has been France +104 -2, 359 +190 -1,155 -476 Holland __ -130 - 253 -254 + 224 +146 more troubled. In the autumn a certain farm- Switzerland -197 - 517 +177 + 16 +120 ing organization called a "valuta" strike, Belgium .__ -210 + 313 - 84 + 1 -125 which by increasing the credit to English im- Total -433 -2,816 + 29 - 914 -335 Italy + 4 - 64 -365 - 334 porters from the usual 10 days to 3 months would have deprived the Nationalbank of the Total -429 -2, 880 -336 -1,248 normal influx of foreign exchange from exports for some 2V-> months and thus, it was The movements were characterized by hoped, force a further depreciation of the their concentrated intensity: in April 1935 currency. But the Nationalbank took pre- the Swiss National Bank lost Sw. frs. 350,cautions, inter alia raising the discount rate 000,000, one-fifth of its gold reserve; in May from 2*4 to 3^ percent, and the strike in fact the Bank of France lost Frs. 9,000,000,000 broke down almost before it had started. of its gold holdings and again nearly Confidence in the stability of the krone was 6,000,000,000 in November; the Nederstrengthened and a simultaneous recovery landsche Bank lost one-fifth of its gold rein the price of Danish export products serve in a single week in July and the cover helped to create a further improvement. In ratio fell 13 points. The Governor of the August the Nationalbank sold Kr. 15,000,000 Bank of France at the Annual Meeting of gold, usmg the proceeds to repay a Swiss the Bank in January 1936 said: "The wide credit of Sw. frs. 20,000,000 which had been spread of the forward rate discloses the outstanding since 1932. existence of speculative positions which have The countries of the gold bloc suffered a not yet been definitely liquidated in spite of succession of extraordinary movements of repeated setbacks. It would be vain, howfunds during the year. The efflux of capital ever, to attribute to this single cause the from Belgium reached its climax in March adverse tendencies which have been manifest 1935 without, however, seriously affecting on the exchange market. In fact, they rethe position of the National Bank. After de- sult principally from a movement of export valuation of the currency on April 1 (due of capital which, particularly in November, to economic and political considerations of a was encouraged by a recovery of security general nature), a reverse movement of both values in the United States. Foreign denational and foreign capital attained con- posits on the Paris market play too insignisiderable proportions and contributed to the ficant a role for their withdrawal sufficiently strengthening of the position of the com- to explain these transfers of funds. In mercial banks. This inward movement con- reality, more than ever, the fate of the franc tinued until June, after which some reflux is in the hands of the French." During the occurred, insufficient, however, to reduce the past year the exodus of capital has gone Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

448 FEDERAL RESERVE BULLETIN JUNE 1936 further than the mere liquidation of foreign be converted into foreign exchange by means assets in the principal money markets and of additional exports under the Pengo Transhas affected a deeper layer of funds. From fer Agreement and by way of sale for the Switzerland the outflow was mainly of purpose of tourist traffic, emigrant remitmoneys which for years had been invested tances and other similar transactions. In in the country by foreigners; while the capi- relation to certain countries Hungary betal which went abroad from France and Hol- came a creditor on clearing account and took land was on the whole the property of na- advantage of this position to offset previous tionals. The contraction of the home mar- liabilities due to the same countries. Thus ket due to the export of capital and not the a part repayment on the $5,000,000 credit insufficiency of gold reserves which in fact granted by the Reichsbank in 1931 was made remained adequate, caused the French Treas- during the year and at the beginning of ury in February 1936 to raise a credit of 1936 the settlement of a previous credit was £40,000,000 in London to cover expenditure arranged with the Banca d'ltalia. in francs. The credit was granted at 3 per- The lapsing of the Austrian Standstill cent, a rate appreciably below that at which agreement was recorded in last year's Anthe operation could have been concluded in nual Report. Early in 1936 a final settle- Paris, and appeal was naturally made to the ment of the Credit Anstalt debts, which were cheapest market. provided for by an agreement outside the The gold losses of the Banca d'ltalia, Standstill, was concluded whereby the credwhich, except for a balance sheet on Decem- itors agreed to receive in full settlement of ber 31, 1935, has published no return since their "live claims" of 215,000,000 schillings October 20, were heavy in the second half an immediate cash payment of 60,000,000 of 1935 on account of the repayment of out-schillings and a further 40,000,000 schilstanding commercial and other credits and lings spread in instalments over 20 years. the purchase of further imports for cash. Of the 60,000,000 schillings required in for- In 1935 the gold value of the short-term eign exchange, the National Bank provided indebtedness of Germany was not, as in 38,800,000 schillings from its reserve, 12,previous years, reduced by any further de- 000,000 schillings were received from the preciation of sterling and the dollar. The Credit Anstalt and the remaining 9,200,000 liquidation of the standstill credits, which schillings were covered by special settlements in the summer of 1931 were the equivalent with individual live claim creditors. The of some RM 6,300,000,000, has continued immediate payment of so large an instalment through the operation of registered marks. in foreign exchange was possible owing to Although total English credit lines have the favorable development of the position of been reduced the amount utilized has actu- the National Bank whose exchange holding ally increased over the year; Swiss and had increased from 35,000,000 schillings to Dutch availed credits have been reduced by 112,000,000 schillings during 1935. about one-third and French by over a half; U.S.S.R. short-term indebtedness which American withdrawals were much more reached considerable proportions in 1930 bemoderate than in recent years. Since March came almost extinct during 1935 with the 1, 1933, when the registered mark system repayment of short-term German credits. was inaugurated RM 1,416,000,000 has been In April 1935 a new trade agreement was withdrawn in this way, of which over 60 signed with Germany, but the RM 200,000,percent was for tourist purposes in Germany. 000 5-year credit granted in this connection The foreign debts of Hungary have de- was only partly utilized at the end of the creased considerably since 1931, owing year. In 1932, 46 percent of Soviet impartly to the depreciation of certain foreign Dorts came from Germany but in 1935 only currencies and partly to capital repayments. 9 percent.; Soviet debt repayments to Ger- The short-term debts subject to a Standstill many are estimated at only RM 60,000,000 agreement between foreign creditors and for 1936 against RM 220,000,000 the pretheir banking debtors have been reduced by vious year. The repayment of outstanding more than one-half in the last four years. foreign credits has been greatly facilitated Repayments on short-term debts have been by the growing gold production. The U.S.S.R. made by the Hungarian debtors in pengo. obtained long or middle-term credits from Pengo amounts paid on Standstill debts could certain countries (Czechoslovakia, Italy, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1936 FEDERAL RESERVE BULLETIN 449 etc.) during the year but the first place for successful in so far as it creates a psychoboth imports and exports is now taken by logical atmosphere favorable for more impor- Great Britain. tant factors to come into play. After a series The accumulation of trade debts has caused of discussions at Basel in the spring of 1935 difficulties in certain countries, notably Ru- between the governors who take part in the mania and Spain, arrears amounting in the Board meetings of the Bank for Internalatter case t;o some six months' imports, a tional Settlements, central banks of the leadposition which led to the arrangement of a ing markets in Europe made arrangements clearing with England where Spain has a with their private banks and other credit large active balance. When commercial debts institutions with a view to checking the remain unpaid for a protracted period the granting of credits for the purpose of specuexporter is deprived of his working capital lation in gold or currencies. Particular care and exposed to the risk of currency fluctua- was taken that lending in respect of dealings tions, a situation which has serious repercus- in forward exchange should be restricted as sions on the volume of international trade. far as possible to commercial or other non- In an increasing number of countries ar- speculative transactions. The restrictions rangements have been made through a central agreed upon have to a large extent been institution for frozen exporters' assets to be effective in limiting the amount of speculamobilized; in Yugoslavia and Hungary the tion based on borrowed funds. provision of funds for this purpose has been This intervention by the central banks has a factor in the increase of the note circulation. been important not only in so far as it The movements of short-term funds from checked speculation of an undesirable charone market to another at the time of acute acter but generally as a measure designed crisis in 1931 were chiefly caused by with- to guard against the dangers arising from drawals of sums which at an earlier date had sudden movements of funds from one market been placed on deposit with foreign banks or to another. In view of the importance of the granted in the form of credits to foreign flow of nervous money from a monetary banks or other institutions. In the past year point of view, it may be of interest to set there also occurred withdrawals of a similar out briefly the measures which may serve character, Americans in particular repatriat- as safeguards against a dangerous developing funds that they held on deposit abroad; ment: but in 1935 the bulk of the transfers were of a different character. As a rule no credit (I) Firstly, central banks already keep a transactions were involved, the nature of the stricter watch on borrowing abroad movement being a transfer of private invest- than has been usual in earlier periods. ments. More complete statistics are collected and they are analyzed with increasing Attention must also be drawn to the effect knowledge of the problems involved. which may be caused by a re-arrangement of Typical of the views which are beginthe payment of commitments arising out of ning to be held was the statement the import and export trade. In a number by Dr. Kienbock, President of the of cases when there was an apparent outflow Austrian National Bank (quoted in of balances from a market, it was found that last year's report) to the effect that a considerable part of the pressure resulted Austria would not accept short-term from commercial firms covering their foreign foreign credits except those arising commitments in advance or allowing maturnaturally from the import trade. Obing claims in foreign currencies to remain servance of that rule would exclude a abroad for the time being. There may be a class of credits which might easily certain semi-speculative element involved in render a country's situation highly changes of this kind, but to a large extent illiquid. it is natural for the commercial community to be prompted by the legitimate desire to (II) Secondly, central banks in creditor avoid losses which might arise in the event countries are also giving these quesof a sudden change in monetary values. tions increased attention, collecting Speculation, in the strict sense of the word, more complete information and genermay with borrowed money intensify a move- ally watching the position. The arment at any given time, but it can only be rangements made by a number of cen- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

450 FEDERAL RESERVE BULLETIN JUNE 1936 tral banks in the course of 1935 with the current balance of payments and credit institutions in their markets which should be allowed to have their with a view to withholding advances effect on the credit volume and other for speculation in currencies and gold movements which are simply the result are a sign of the active interest taken of a temporary outflow or inflow of in this matter. funds. (III) To be able to meet the strain of an (V) Finally, it may be pointed out that outward movement of funds central the danger in 1931 arose not only banks must have at their disposal ade- from an exaggerated use of short-term quate monetary reserves. The revalu- credits for purposes properly requiration of the gold holdings in countries ing long-term financing but also from with depreciated currencies will auto- the fact that short-term funds were matically increase the gold backing held abroad in excessive amounts and of their markets in relation to actual not always in their natural centers. and potential foreign commitments. It is evident, for example, that a large Furthermore, the increase in the cur- volume of sterling area funds in Lonrent gold production (in weight now don, although subject to extensive 50 percent, higher than in 1929) pro- movements over a number of years, vides a larger supply from which the is much less subject to sudden and vioreserves of central banks may be re- lent waves thau a similar volume of plenished. At the Monetary and Eco- European funds. The position in 1930 nomic Conference held in London in was due largely to the overgrown for- 1933 a resolution was adopted recom- eign exchange standard which is unmending that increased elasticity likely in the future to assume the same should be given to central banks' legal proportions. cover provisions by the reduction, for instance, of the percentage gold cover The extensive movements of funds in reto a minimum ratio of not more than cent years have been caused largely by fears 25 percent. It was explained that such of abrupt changes in currency values. If a a change should not be taken as an stable monetary system were re-established excuse for building up a large super- and general confidence restored, it is certain structure of notes and credits, but that much less anxiety need be felt with should be made in order to increase the regard to rapidly-moving short-term balfree reserves of central banks and ances. But even if monetary confidence were thereby to strengthen their position. restored, say, to the extent found in the In conformity with this solution, the years before 1914, the evolution of shortlaws and statutes of several central term international indebtedness would still banks have been amended in such a need watching, for important movements way as to render the monetary re- may occur other than those caused by fear serves more effective for the purpose of depreciation, affecting the liquidity of the of meeting foreign payments. In an money markets and occasionally taxing the emergency the reserves of a central reserves of the central banks. In a period bank may also be strengthened by the of active international lending there may granting of credits from other central be an interval between the time when a loan banks. is issued and when the funds are drawn (IV) Any undesirable influence which an upon, and during this interval the volume outflow or inflow of migrating funds of short-term funds in the lending market might have on the domestic credit may be swollen beyond normal proportions. position may be at least reduced by Furthermore, a depression affecting a large the credit policy which the central number of countries may lead to a protracted bank in the exposed market finds op- strain on the monetary center in which these portune to pursue. In planning their countries keep their monetary reserves. And policy the central banks have to dis- the large movement of funds to the United tinguish between gold movements States for investment in call loans or securiwhich reflect a lack of equilibrium in ties on the New York stock exchange which Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

451 JUNE 1936 FEDERAL RESERVE BULLETIN occurred in 1928-1929 is another example of cent below the published rate of 2% percent. persistent pressure on the exchange situation In addition, numerous other rates besides the at a time when there was jio monetary un- official discount rate are quoted by central rest. It is thus essential that central banks banks: in France inter alia for advances for should continue to collect information re- 30 days against government paper with less garding international assets and liabilities than two years to run; in Poland there is a and that the position as it develops should special rate for export bills; in Lithuania be studied closely in each national market differential rates are quoted for import bills and also from an international point of view. of exchange and for export and industry; in Latvia credit institutions are able to re- THE TREND OF SHORT AND LONG-TERM discount at V2 percent below the rate of dis- INTEREST RATES count for private entities, etc. In addition, central banks normally quote a rate for three The downward pressure on short and long- months' advances 1 percent or more above term interest rates which began in the spring the discount rate, the former rate being to of 1932 after the acute phase of the liquidity some extent assimilated to the long-term rate crisis of the previous summer and autumn of interest as advances tend to be at longer had passed, still characterized developments term than discounts and are not self-liquidatin 1935. Outside Europe the tendency to- ing in the same way. And in practice the wards cheaper short-term money was con- effectiveness of the rates quoted by the centinued almost without check. In Europe also tral bank at any given time will depend upon the improvement continued in so far as a the funds in the hands of the banking system number of the higher rates were reduced, and the open market. several central banks quoted the lowest rates Nevertheless, with all these differences in recorded since the war or for all time, and mind, it is believed that the comparisons some of the low rates have now been in effect made in the preceding paragraphs help to for record long periods. But the rates of six give a representative picture of the trend European central banks were higher at the and fluctuations of short-term money rates end of the year than at the beginning, the in the world. banks in each case taking steps to defend The downward trend of short-term intertheir currencies at a time when they were est rates has continued in the phase of the losing gold. As the influence of low short- conjuncture through which the world is at term money rates has penetrated into the present passing, the interruptions to the long-term markets a number of important main theme which have been experienced in conversions of long-term securities, particu- Europe being rather in the nature of epilarly the obligations of governments and sodes which do not in themselves change the other public authorities, have become pos- more fundamental development. The low sible and were carried through during the rates are a natural result of a drawn out year. depression characterized by little demand If a comparison be made of the relative for new funds; the downward readjustment positions of money rates in different coun- has been assisted in many countries by centries it is evident that the significance of the tral bank policy and other interventions. official bank rates varies considerably from Cheap money has been a necessary preparacountry to country. Account must particu- tory condition for conversions of long-term larly be taken of the structure of the banking securities, desirable not only as a means of system and the absence or presence of some alleviating the budget but for more general outside market. In France bank rate is the reasons. Although there is still little sign uniform rate applied for discounts through- of a general hardening of rates, it should be out the country, whereas, for example, in remembered that a change in credit condi- England actual transactions at bank rate are tions has in the past often followed a rise in extremely rare, the rate for seven days' ad- gold production and an increase in governvances (the usual method of accommodating ment spending (as, for instance, in the the market) being generally at % percent twenty years before the great war). It remains essential that central banks preserve above bank rate. In Sweden, on the other their freedom of action in the use of the dishand, the banks may rediscount at ^ per- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

452 FEDERAL RESERVE BULLETIN JUNE 1936 count weapon for the maintenance of cur- corporations and credit agencies) arranged rency stability and a sound credit position. according to maturity: For the past fours years there has in gen- [In thousand million dollars] eral been a decided downward trend in longterm yields which has brought the London Previous Lowest De- De- Derate from about 5 to around 3 percent, the Federal Government debt highest post-war cem- cem- cemof the United States August Decem- ber ber ber New York rate from 4 to 2*4-3 percent, 1919 ber 1930 1932 1934 1935 while in Berlin the rate fell below 5 percent in 1935 compared with over 12 percent early Bonds maturing in over five years 17,0 12,1 14,2 13,0 14,7 in 1932. The yield of the 3 percent perpetual Short-term debtl _ __ _ . 9,6 3,9 6,6 15,5 15,8 rente in Paris stood around 4 percent at Gross debt. 26,6 16,0 20,8 28,5 30,5 Treasury net balance in genthe end of 1935—for a year to the spring eral fund 1,1 0,3 0,2 2,6 2,2 of 1934 the yield was 4^ percent; the im- Net debt- .. 25,5 15,7 20,6 25,9 28,3 provement in the spring and late autumn of 1934 which nearly brought the rate down 1 Including matured and other debt payable on presentation and bonds called for repayment or conversion. to SY2 percent was interrupted by the disturbing events of 1935. At the present time over half of the gross debt of approximately $30,000,000,000 is due The conversion of the remaining $8,200,within five years: of the increase of $14,000,- 000,000 Liberty Bonds outstanding in the 000,000 since 1930, $12,000,000,000 has been United States was completed in 1935 with in the form of securities with under five the results shown below: years' maturity. Although no further conversions of bonded debt are possible within the next five years, Treasury operations on Conversion of Liberty bonds Amount Per cent a large scale will remain necessary to raise Into new bonds $5, 060, 000, 000 62 funds for the refunding from time to time Into short-term notes 1, 890,000,000 23 of recurring maturities of Treasury notes Cash repayments... 1, 250,000, 000 15 and bills and for the financing of any gov- Total called 8, 200, 000, 000 100 ernment expenditure over and above current revenue. In the middle of March 1936 the The rates at which bonds and notes have United States Treasury offered $1,250,000,been issued declined throughout the series 000 of new 2% and l1/^ percent securities of operations, the latest conversion offer in mostly for cash subscription, the largest October 1935 being of 2% percent 10-12 year operations of this type since the war period, bonds and 1^2 percent SV^-year notes. The in preparation for the payment of the Solcompletion of these operations leaves (apart diers' Bonus. The extreme liquidity of the from the short-term debt) no further ma- market is shown by the fact that cash appliturities of government bonds within the next cations alone reached $8,460,000,000. five years, the earliest callable issue being It has been authoritatively estimated that a small amount of 3% percent bonds 1940- of the total debt of $28,700,000,000 out- 1943. Most of the government bonds now standing at the end of the fiscal year June outstanding mature in more than eight years 30, 1935, $15,000,000,000 or 53 percent was held by banks in the United States; of the and many are not callable within ten years. increase of $1,650,000,000 during the 1934- The yield of all outstanding Treasury 1935 fiscal year the banks took over 90 perbonds of over eight years' maturity fell becent. It is probable that 60 percent of the low 2.6 percent in July 1935, a record for government securities held by member banks all time. Thus, although in the past five of the Federal Reserve System mature years the total debt of the United States has within five years. been nearly doubled, the service charge has The year 1935 has seen important issues risen only 50 percent, being kept down by on public account in Germany for the conconversions and by the very low current solidation of employment creation and other rate of interest on short-term securities. short-term bills outstanding in the market, The following table shows the evolution of the total issues and announcements on official the direct Federal government debt of the account during the year amounting to some United States (exclusive of governmental RM 2,350,000,000. Early in the year RM Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

453 JUXE 1936 FEDERAL RESERVE BULLETIN 500,000,000 41/2 percent Reich 28-year bonds its lowest point in January 1935 when 2V2 were taken up at 9814 by the savings banks percent irredeemable consols touched 94, the and Girozentralen. After the mortgage highest price ever reached by this security, bond and loan conversion in the spring had and business was done in Wfa percent War been accomplished and the capital market Loan (1952) at 110. The outstanding event had settled down, further consolidations be- of the year was the successful Treasury borcame possible. In the late summer a RM rowing early in December when £200,000,- 500,000,000 issue of 10-year 4i/ percent 000 21/2 percent 20/25-year bonds were is- 2 Reich Treasury certificates at 98% was sued at 96i/ and £100,000,000 1 percent 5- 2 made to the public, this being the first Reich year bonds were issued at 98, both amounts loan offered for public subscription since being oversubscribed within a few hours. 1929. In order to avoid disturbing the The nominal rates of interest of these two money market payments were distributed issues are low records in English financial over a three months' period. It was an- history. About £200,000,000 of the proceeds nounced in August that a further RM 500,- were applied for the redemption of matur- 000,000 of Reich bonds would be taken over ing long-term debt while the balance was by the savings banks on the same terms applied to retire part of the floating debt. as the previous issue, the first tranche having In France the capital market has been been absorbed without difficulty. In addi- subject to a number of adverse factors. Betion, the private insurance institutions also sides the uncertainty caused in the spring of invested part of their current revenue in 1935 by the devaluation of the belga, the Reich loans, the amount being in the neigh- Paris market has suffered, as indeed during borhood of RM 350,000,000 on conditions the past two or three years, from the conwhich have not been published. Further, in tinuous financing of budget deficits and ex- December 1935 it was announced that the traordinary expenditure which have raised German railway company was issuing RM the total public debt by Ffcs 64,000,000,000 500,000,000 41/2 percent 8-year Treasury to Ffcs 340,000,000,000 from the end of 1930 certificates at 98i/ , of which RM 400,000,- to the end of 1935, while the accumulated 2 000 were to consolidate short-term debts, deficits of the common fund of the railways, the remainder to be used for Reichsbank in- covered by obligations issued by the comvestments. The total amount to be applied panies, amounted to Ffcs 19,000,000,000 in to the consolidation of short-term bills on the same period. In view of the export and the market amounts therefore to RM 2,250,- hoarding of French capital Treasury borrow- 000,000. The Reichsbank Annual. Report ing has been all of short-term character: in states that in the long-term capital market the spring of 1936 advantage was taken of generally interest has been alinost univer- the cheaper market rates in London to borsally reduced to A1/^ percent with the result row £40,000,000 for three (or maximum that the annual savings on public and private nine) months in sterling. account amount to some RM 500,000,000. Among the important measures included The savings banks have played an active in the economy decrees of July 1935, the part in taking up the new issues and it is Laval government cut all government exinteresting therefore to show the reconstitu- penditure by 10 percent including interest tion of savings in the German savings banks on rentes, bonds and other obligations of the since the financial crisis of 1931. State. In addition, the decrees provided for The preponderating part of the assets of the payment by anticipation (after four the savings banks consists of mortgages and, weeks' notice) of all or any civil or comto a much smaller extent, loans to local au- mercial debt contracted before July 17, 1935, thorities. Of the total assets of over RM and represented by transferable securities. 13,000,000,000 only about RM 1,500,000,000 The object of this measure was to allow conconsists of Reich government securities. versions to be made which might otherwise In England the capital market was active be held up through the fact that the securiduring the year 1935, the total issues being ties to be converted might not be due for £182,000,000 against £161,000,000 in 1934. repayment; but the decree does not apply to The present total is only half of the peak rentes and other government debt. year, 1928, but is double the lowest year, Important conversions of internal debt 1931. The long-term rate of interest reached have also taken place in a number of other Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

454 FEDERAL RESERVE BULLETIN JUNE 1936 countries. In Belgium the first conversion ticular applications and, if occasion arises, of public debt since 1895 was made duringon the principles which govern the restricthe year. State, municipal and provincial tions, although he stated that no radical loans amounting to a global total of nearly alteration of the ban was at present contem- Bfcs 40,000,000,000 have been converted to plated. Stockholm has continued to take up a uniform interest level of 4 percent, while issues by governments in neighboring counfurther measures concerning the lowering tries; in particular a Kr. 20,000,000 3i/ per- 2 of the interest rate on Bfcs 25,000,000,000 cent 15-year loan issued at 96^ in January of mortgage credits and the constitution of 1936 for account of the Norwegian governa central mortgage institution have been put ment was considerably oversubscribed in one into operation early in January 1936. A hour. Polish government conversion operation ap- The extraordinary redemption and repaplying to Zl. 600,000,000 covered all internal triation of foreign bonds, especially of Euroloans (with one or two minor exceptions) pean and other dollar bonds, has continued floated before 1933 which were consolidated during the year under review, particularly into a 4 percent 45-year loan in January in the cases of Belgian and Finnish bonds, 1936. In Spain and Portugal important in- but at probably a somewhat slower pace than ternal conversions of government securities in recent years. It would also seem as if have been carried out reducing interest rates fairly large amounts of bonds originally roughly from a 6-6 V2 percent level to 3V2-4V2issued in the United States had been bought percent. In Czechoslovakia a 10 percent cut by foreign investors in other than the debtor of the interest on internal government loans countries. Of the $7,500,000,000 nominal already subject to a 15 percent coupon tax foreign dollar bonds outstanding at the end has been made from January 1, 1936, as part of 1935, it has been estimated x that on acof a plan providing for the unification of thecount of repatriation and resales abroad government debt and the reduction of inter- only $4,500,000,000 or 60 percent are held est rates in general. in the United States, although information on this subject is very incomplete. To debtor Capital issues on foreign account show countries with slender monetary reserves little sign of expansion. In the United States and a difficult export position such repatriaforeign issues in 1935 amounted to nearly tions are naturally a great strain and in the $80,000,000 mostly for Canada, compared case of Hungary a decree issued in January with $10,000,000 in 1934. In March and 1936 prohibits the importation of Hungarian April 1936 two Norwegian government 4i/ 2 securities from abroad except with the appercent long-term issues for conversion purproval of the National Bank. poses, together nearly $50,000,000, were suc- If those countries are excepted which cessfully made in New York. In London stand to each other in a special relationship, foreign issues attained only £21,000,000 as, for instance, the members of the British against £42,000,000 in 1934, in each case Empire, the cheap money policy has only in about 80 percent being for Empire countries. a few instances led to conversions of foreign Refunding and conversion issues on overseas issues to lower rates of interest. It is true account amounted to £72,000,000 of which that in cases of transfer difficulties special £62,000,000 was for the Empire: India, New arrangements have been made to provide for Zealand and Australia were the chief benefithe reduction of rates effectively paid or for ciaries from conversions; in the case of the payment of interest by means of new Australia the eleventh conversion since Ocbonds. But these arrangements are only tober 1932 was made in January 1936, bringtemporary expedients. Concerning the quesing the total converted to some £182,000,000 tion of concluding more durable agreements, with an annual saving of about £2,500,000. it is of importance to remember that the The ban on foreign issues in the London volume of international long-term indebtedmarket which dates from 1932 has since been ness has, by redemptions and repatriations, somewhat relaxed with regard to issues for been very much reduced in recent years; the countries in the sterling area and issues calinternational debt position, therefore, begins culated to produce direct benefit to British industry. In April 1936 the Chancellor appointed a committee to advise him on par- 1 Bulletin of Institute of International Finance (of New York) issued early in April, 1936. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

455 JUNE 1936 FEDERAL RESERVE BULLETIN to be of more manageable proportions, the country, but it is possible to recognize some total debt outstanding being much below broad categories: the high figure which was reached when the (I) In the first class may be placed those liquidity crisis of 1931 put an abrupt end to measures which referred almost expractically all new foreign financing. In this clusively to the powers and working of field no recovery is as yet visible; in fact, the central banks' organization. Steps international business is increasingly being have thus been taken to give greater settled on a cash basis. Difficulties are found elasticity to legal cover provisions, to in judging the credit position of would-be enable the central banks to dispose borrowers in foreign countries and in overmore fully of their accumulated recoming the obstacles which the many clearserves. Mention of a number of the ing arrangements put in the way of the measures taken to date was made in ordinary working of the credit machinery; the last annual report. On May 1, the monetary uncertainty also acts as a de- 1935, an amendment to the statutes terrent to the development of credit connecof the Bank of Danzig reduced the tions. De facto maintenance of exchange legal minimum of gold and foreign exrates, while of great help to trade, does not change to be held against notes and seem to provide a sufficient basis for the reother demand liabilities from 40 to 30 establishment of credit transactions, especipercent. A decree of January 13, ally when these are of a long-term character. 1936, makes certain changes in the statutes of the National Bank of Bul- RECENT DEVELOPMENTS IN CENTRAL AND garia: the legal minimum cover COMMERCIAL BANKING against the note issue and other de- Seven years of depression involving an un- mand liabilities is reduced from 33% precedented fall in commodity prices, seri- to 25 percent.; as was the case with ously affecting the market value of real the Reichsbank in 1931, the progresassets, and extensive movements of funds in sive tax and automatic increases of bank rate, envisaged in the statutes search of liquidity and safety have everywhen the cover falls below the prewhere submitted the banking structure to scribed percentage, are now abolished. severe strains. It is in only relatively few At the annual general meeting of the countries that the existing banking organi- Bank Polski held on February 20, zation was so strongly established and main- 1936, a number of modifications in the tained such a degree of liquidity that it could statutes of the bank were approved by pass, if not unscathed at least unassisted, the shareholders, in particular a rethrough the crisis. Experience has shown duction in the capital of the bank from that nowhere have the authorities been able 150,000,000 to 100,000,000 zlotys; the to abstain from intervention if faced with Zl. 50,000,000 represents the particiserious difficulties in domestic banking. pation made at 150 percent by the When a breakdown threatened, measures of State, at the time of the Stabilization immediate relief had often to be improvised Loan, and which the bank will repurand in particular State aid was given to chase at the same price of Zl. 75,000,supplement normal credit facilities. But the 000 by an equivalent reduction of the necessity of attacking the evil at its roots State debt to the bank. provided the urge for the adoption of re- (II) In certain other countries changes in forms designed to strengthen the permanent the banking structure have been conbanking machinery and prevent as far as cerned almost exclusively with the possible the repetition of errors which recent commercial banks, leaving unaltered events revealed. the standing and the current func- Some of the temporary measures were tions of the central bank. That has clearly required only while exceptional pres- been the case in Rumania, Switzerland sure prevailed; others have been incorpo- and Belgium, and the same can in the rated, sometimes in a modified form, in per- main be said also about the German manent legislation. Executive and legislative was adopted in the summer of 1935, action varies naturally from country to reforms. The new Belgian legislation Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

456 FEDERAL RESERVE BULLETIN JUNE 1936 while the new banking laws in Ger- bank rate in the country (of 3^2 percent remany and Switzerland were promul- duced in November to 3 percent) was angated in the previous year; thus some nounced and on July 5 the scheduled banks experience of their working has al- lodged their statutory deposits. As in the ready been obtained. Argentine the creation of a central bank (Ill) In other countries, notably the United made it possible to clear away the somewhat States, the Argentine and Italy, the rigid mechanism of the Conversion Office, so changes introduced have aimed at a in India the central bank took over the gold thorough overhauling of the whole (at the old price without revaluation) and credit organization affecting both the sterling assets of the gold standard and paper central banking institutions and the currency reserves, which previously assured private banks. In the Argentine the the external and internal convertibility of the reforms included the creation of a new currency, £7,500,000 sterling being retained, central bank; in the United States the however, to constitute the new silver redempnew Banking Act of 1935 made the tion fund. The balance-sheet of the bank at most fundamental revision of the Fed- the end of the year 1935 shows in the Issue eral Reserve Act since its adoption in department 4,400,000 rupees of gold and 1913; and in Italy the Banca d'ltalia 6,600,000 rupees of sterling against the note was transformed into a bankers' bank, issue of 17,200,000 rupees, giving a proporin connection with a reform changing tion of 57 percent, while a further 1,700,000 the legal status of the country's major rupees of sterling were held in the banking credit institutions. department. The various exchange, cotfimercial and in- It would, however, he taking too narrow a digenous banks of India are subject to no view of the recent banking legislation to re- new law except the provisions of the Reserve gard it simply as the product of an emergency Bank Act directly affecting them; by section situation. In many respects this legislation 42 of the act the scheduled banks are bound is the outcome of experience over a number to maintain a balance with the Reserve Bank of years, often connected with deep-rooted of not less than 5 percent of demand liabilichanges in methods of financing domestic and ties and 2 percent of time liabilities in India; foreign business; or it reflects currents of the scheduled banks make returns showing ideas which have grown gradually stronger. demand and time liabilities and various other Typical of the new developments of a longer assets in India to the Reserve Bank which term trend is the creation of central banks the bank compiles and publishes weekly as in countries which cannot be said to have a consolidated statement. experienced any acute credit difficulties dur- It should also be mentioned with regard ing the depression. Besides that in the Ar- to the position of the central banks that gentine, new central banks have been estab- legislation has been introduced (and in part lished in New Zealand, Canada and British already adopted) to provide for the State- India, and in several countries some already ownership of the Nationalbank i Kj0benhavn existing banking organization is either grad- (which is to be transformed into the Danually, or by definite legislative act, being marks Nationalbank), the Reserve Bank of transformed into a central bank working on New Zealand and the Bank of Canada. Even modern lines, by the elimination of private though provisions are being made to guarbusiness and concentration upon the task of antee a certain measure of autonomy to the regulating the credit and currency volume. central banks, this development is contrary Information on these developments has been to the principles adopted at the London Congiven in previous annual reports of this ference in 1933 as to the maintenance and bank. strengthening of the independence of central For the year 1935 it should be added that banking organizations. Experience has on April 1 the new Reserve Bank of India shown how important it is for monetary was inaugurated, on which day it took over authorities to be free from political presthe control of the Issue department from the sure; but such freedom does not mean that Government and the management of the pub- central banks are precluded from collaboratlic debt and government accounts from the ing with government departments. Indeed, Imperial Bank; on July 4 the first official their position as bankers of the government Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1936 FEDERAL RESERVE BULLETIN 457 makes such collaboration an integral part of office is lengthened from 12 to 14 years, of their functions. members being ineligible for reappointment. Both with regard to the magnitude of the The chairman and vice-chairman are desigemergency measures and the scope of the nated by the President for a 4-year period, permanent reorganization, the most impor- thus giving these positions a definite tenure. tant developments are to be found in the Open market operations are under the United States. It is still too early, however, control of a committee consisting of the to draw a definite line between the tempo- seven members of the Board of Governors rary and the permanent innovations. and five representatives of the Federal Re- Certain emergency measures have defi- serve banks, an arrangement which gives nitely served their purpose as, for example, both the Board and the regional banks reprethe provisions for the opening of the banks sentation in the determination of open marafter the banking crisis in the spring of ket policy, and places fixed and unescapable 1933 and the restrictions on dealing in for- responsibility for the policy on one statutory eign exchange imposed at that time. Other body. A line of action once adopted by the measures apparently also of an emergency Open Market Committee, the individual Recharacter have not been liquidated: the Re- serve banks have no authority to decline parconstruction Finance Corporation formed ticipation; it becomes the policy of the sysunder President Hoover in January 1932, tem. Purchases and sales of United States although it was able to reduce its outstand- Government obligations may be made only in ing loans under the original act (sec. 5) the open market (as indeed they have always during 1935 from $1,296,000,000 to $970,- been in practice). Records must be kept by 000,000, has had further functions added to the Board of all actions of the Open Market its sphere of activity, and its total loans, Committee and the Board on all questions purchases and allocations (including the of policy, and these records showing the loans mentioned above) rose from $4,362,- action taken, the votes in connection there- 000,000 to $4,926,000,000 during the year; with, and the underlying reasons for such also President Roosevelt declared in January actions will be published in the annual re- 1936 that the emergency under which the port of the Board. dollar had been reduced in weight by 40.94 Apart from open market operations, aupercent continued to exist and he reserved thority over all major instruments of credit his powers for a further year to alter the control, viz. changes in discount rates, in gold weight of the dollar within the limits member bank reserve requirements and marof 40 to 50 percent. But as recovery progins prescribed for loans on securities, is ceeds temporary measures become of less vested in the Board of Governors. The local weight while permanent measures of reform, autonomy of the Reserve banks is preserved based on the experience of the emergency as regards their dealings and relations with and of the past in general, grow in importhe member banks in their respective distance. The new Banking Act of 1935 detertricts, but the ultimate responsibility for the mines and concentrates responsibility for the national credit policy rests on the Board of national credit policy; restrictions which Governors in Washington. The local Rewere found hampering in the emergency serve banks must submit to the Board the period are permanently removed; and cerrates they wish to establish in their districts tain measures, some of which were originally and these rates cannot become effective framed to meet the emergency, are made without the approval of the Board which, permanent. with the Federal Reserve banks, must re- The Federal Reserve Board is reconsti- view the rates at least once every two weeks. tuted under the name Board of Governors The law also clarifies and alters the authority of the Federal Reserve System. From Feb- of the Board of Governors to change memruary 1, 1936, the Secretary of the Treasury ber bank reserve requirements. Under the and the Comptroller of the Currency ceased Thomas amendment to the Agricultural Reto be ex-officio members and the Board con- lief Act (adopted in 1933) reserve requiresists of seven members appointed by the ments could be changed only when an emer- President. The general qualifications and gency was declared to exist owing to credit method of selection of the members of the expansion, and then only with the approval Board remain unchanged but the full term of the President of the United States: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

458 FEDERAL RESERVE BULLETIN JUNE 1936 changes may now be made by a vote of four was included in the original draft of the members of the Board "in order to prevent new law, it was eliminated in the act as injurious credit expansion or contraction," passed in 1935 so that the Federal Reserve provided that the reserve requirements shall note issue is still subject to the Federal Renot be reduced below those at present in serve Act of 1913 modified for the time being force nor increased to more than double. by the Glass-Steagall Amendment which re- The emergency provision from the Glass- mains in force under Presidential proclama- Steagall Act of February 1932 authorizing tion until March 1937. a Reserve bank to make advances to its mem- The new law makes permanent the Fedber banks on any security suitable to the eral Deposit Insurance Corporation, origi- Reserve bank (but not eligible under the old nally created under the Banking Act of 1933. Act) is liberalized and made permanent. Title I of the new law lays down the condi- These advances, no longer considered excep- tions for the insurance of deposits up to the tional, are to be made at a rate of interest amount of $5,000 for any one depositor, the at least one-half of 1 percent higher than assessment rate being fixed at one-twelfth of the highest discount rate in effect at the Re- 1 percent per annum on total deposits. This serve bank in question and the maturity of measure makes a step towards the unification the advance may not exceed four months. of the Federal Reserve System by requiring The permanent adoption of these powers that all banks with deposits of $1,000,000 or constitutes a recognition of the fact that more must become members of the System rigid technical provisions with regard to by 1942 in order to retain the benefit of eligibility hampered the Reserve System in deposit insurance. By June 1935 90 percent a period of crisis and failed to protect the of the banks in the country were insured, banking system from collapse; it also recog- the Corporation's liability covering $18,000,nizes that the scope of operations of the 000,000 out of the $41,000,000,000 deposits member banks has changed and that eligible of the insured banks. paper under the old definition forms a de- The Banking Act of 1935 also includes a creasing proportion of the assets of the number of other measures regarding the banks. banks of the country. The provisions under Besides the reorganization of the Board, which national banks are permitted to make administrative changes with regard to the real estate loans are liberalized, the percent- Reserve banks include the creation of the age of the value a real estate loan may cover posts of president and vice-president, the being raised from 50 to 60 percent and the chief executive officers, appointed for a term term of the loan from 5 to 10 years: real of five years by the local board of directors estate loans may be made up to an aggregate subject to approval by the Board of Gover- amount equal to 100 percent of a bank's unnors in Washington, which thus has an op- impaired capital and surplus (previously 25 portunity of approving the Reserve banks' percent) or 60 percent (previously 50 perchief executives without impairing the essen- cent) of time and savings deposits, whichtial regional autonomy of the banks. Under ever is greater—previous geographical rethe old law there was no provision for an strictions are also removed. "The liberalizaexecutive head of the banks although in prac- tion of real estate provisions" comments the tice the local boards had selected executive FEDERAL RESERVE BULLETIN "will make it officers and designated them as governors. easier for the member banks to participate Various emergency measures are thus in the financing of building activity, the remade permanent law but there are others sumption of which is an essential factor in which though important are not included. recovery . . . The danger for banks is not For example, the Glass-Steagall Act, which in making real estate loans as such, but in was passed in 1932 at a time when the Sys- making poor loans of any kinds. The field tem was under pressure of withdrawals of of real estate loans offers considerable opfunds, heavy gold losses and extensive hoard- portunity for the proper investment of bank ing of notes, authorized the Reserve banks funds." Every national bank is required to hold United States Government obliga- gradually to build up its surplus fund until tions as supplementary cover for the note it equals the amount of its common stock. issue, thus greatly increasing the "free gold" The new law contains certain regulations of the System. Although a similar provision regarding the computation of required re- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1936 FEDERAL RESERVE BULLETIN 459 serves; in particular member banks are now made up to 700,000,000 pesos from other required to maintain the same reserves sources, was utilized by the government as against United States government deposits to 10,000,000 pesos to provide half of the subas against other deposits, whereas previously scribed capital of the central bank, as to no such reserves were necessary. Other pro- 10,000,000 pesos to constitute the capital of visions are also made with regard to the the Liquidation Institute; a further 380,payment of deposit and interest, postal sav- 000,000 pesos provided the Institute with the ings accounts and interlocking bank direc- funds to purchase frozen assets from the torates. banks, thus enabling them to reconstitute The new central bank in the Argentine, their cash balances and to comply with the which opened in May 1935, was created as minimum cash reserve; the remaining 300,part of a comprehensive plan for the reor- 000,000 pesos was applied as to 150,000,000 ganization of the monetary and banking pesos to the amortization of the government's system of the country: three autonomous direct debt to the Banco de la Nacion, 140,bodies, the Conversion Office, the Rediscount 000,000 pesos for repayment of Treasury Committee and the Amortization Board, and bills outstanding, while the balance was detwo funds, the Foreign Currencies Fund and posited in the central bank. The floating the Exchange Profits Fund, were incor- debt of the government which at the beginporated in the central bank or ceased their ning of 1932 stood at 1,200,000,000 pesos functions; the gold reserve taken from the had been reduced by consolidations, repay- Conversion Office was revalued and the book ments and the profit on the gold revaluation profit allocated; a new Liquidation Institute to 110,000,000 pesos at the end of 1935. was formed to take over the frozen assets of The general banking law stipulates that the banks and a law on the banks was put the private banks must hold cash reserves into force. equal to at least 16 percent of demand de- Under the old law of 1899 the monetary posits and 8 percent of time deposits and system was very rigid, gold movements pro- two-thirds of these reserves must be conducing an automatic effect on the volume centrated at the central bank (which may, of the note circulation, a system of much in- however, temporarily exempt any bank in convenience to a country like the Argentine special circumstances and for short periods). subject to wide fluctuations of the trade bal- Interest paid by the private banks on demand ance although, in practice, a number of deposits must be at least 3 percent below the makeshift measures brought some mitiga- minimum rediscount rate of the central bank tion. The new central bank under the law and on savings deposits at least 1 percent of March 28, 1935, has as its first object "to below the same rate. Certain operations concentrate sufficient reserves to moderate which might affect adversely the liquidity of the consequences of fluctuations in exports the banks are prohibited. Each bank is and investments of foreign capital, on cur- bound to render a confidential monthly rerency, credit and commercial activity, in turn to the central bank which publishes a order to maintain the value of the currency" summary without divulging the details of inand the new regulations are designed to give dividual establishments and the central bank the system the elasticity necessary for such is given power to request any further cona policy to be carried out. fidential information or amplification of the From 1929 to 1935 the Argentine peso de- data given. The banks are also subject to clined to about 46 percent of its old parity periodical inspection by officers sent from the and when the central bank took over the gold central bank. of the Conversion Office (together with its The statutes of the Central Bank of the note liabilities) the gold was revalued on this Argentine Republic give the bank the mobasis, although the provisions in the law for nopoly of note issue in the country and stipredemption of notes in gold or foreign ex- ulate that a gold and foreign exchange rechange were expressly suspended until fur- serve of at least 25 percent must be held ther decree. The "gold in vaults" shown in against notes and demand liabilities, while the first balance-sheet of the new bank on no dividend may be paid if the proportion May 31, 1935, amounted to 1,224,000,000 falls for more than two or three months bepesos, the revaluation having produced a low 33 percent; foreign exchange may not profit of 663,000,000 pesos. This profit, exceed one-fifth of the total reserve nor Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

460 FEDERAL RESERVE BULLETIN JUNE 1936 count as to more than 10 percent of the been made in the official rate of exchange, legal proportion. Half of the subscribed the price paid for export bills, which was capital of 20,000,000 pesos was provided by pegged to sterling at 15 to £ in January 1934, the banks in the country having a capital while the free rate fluctuates around 17 to of at least 1,000,000 pesos and half by the 18. government (without voting rights) from In Europe, the most drastic innovations the revaluation profits. The banks maintain have been made in Italy. The adverse movecash balances at the central bank as provided ment of Italian foreign trade, particularly also in the banking law and the most impor- the falling off of exports, led already in 1934 tant government business is taken over from to restrictions being placed on imports, and the Banco de la Nacion. The central bank foreign exchange operations were limited to is governed by a full-time President and the real requirements of industry and trade Vice-President, designated by the Chief Ex- or of persons travelling abroad. In the first ecutive in agreement with the Senate from half of 1935 further import restrictions were candidates proposed by the meeting of share- imposed and a superintendent of foreign exholding banks, and twelve directors, mainly changes appointed, depending directly from representing banking interests but including the Prime Minister, to regulate the allocation an agriculturist, a livestock producer, a bus- of foreign exchange according to the proiness man, a manufacturer and a government visions in force and to coordinate the servrepresentative. Not more than three for- ices in control of exports and imports. In eigners may be on the board at the same July, the obligation of the Banca d'ltalia to time. The institution is essentially a bank- maintain a 40 percent, cover in gold and ers' and Government bank having no direct foreign exchange was temporarily susrelations with the public. Rediscounts and pended, allowing recourse to the gold reloans may be made for the member banks serve for the settlement of outstanding forand temporary advances to the Government eign .commercial debts amounting to some up to 10 percent of the average cash re- 500,000,000 lire, a figure lower, however, ceipts from revenue of the previous three than Italian credits frozen abroad. In Auyears. gust 1935 it was decided to make compulsory The first balance-sheet of the bank showed, the surrender to the National Exchange Inbesides the gold taken over from the Conver- stitute, acting on behalf of the Treasury, of sion Office, 123,000,000 pesos of foreign ex- all foreign credits, which were to be paid in change and gold abroad received from the cash at the rate of the day of the decree. Foreign Exchange Fund and consisting Also all foreign securities and Italian securimainly of gold held in London. The utiliza- ties issued abroad and held by Italians, postion of the revaluation profit to repay debt session of which had already been declared and unfreeze the banks has naturally given under the decree of December 8, 1934, were liquidity to the market and the central bank to be purchased by the Institute against 5 has as yet no rediscount portfolio. (The percent, nine-year Treasury bonds. The cash holdings of the commercial banks were special conditions obtaining from October 827,000,000 pesos at the end of 1935 as com- 1935 onwards hastened the process of cenpared with 485,000,000 a year earlier.) The tralization, and from that month the publicaonly domestic earning assets of the central tion of statistical data was suspended. Thus, bank consisted of 400,000,000 pesos of Na- the regular returns of the Banca d'ltalia tional Treasury 3 percent, consolidated bons have ceased (but the figures relating to the which the bank is permitted to sell on the end of December 1935 were published at the market to absorb excess funds. In fact, dur- meeting of the General Assembly of the ing the first two months of its operations the Banca d'ltalia). By decree of November 11, central bank sold 250,000,000 pesos of its 1935, the Foreign Exchange Institute, actholding of Treasury bons but had repur- ing on behalf of the Treasury, received a mochased some 70,000,000 pesos by the end of nopoly for the purchase abroad of gold and 1935. The first return showed a reserve of was empowered to purchase gold within the gold and foreign exchange of 140 percent, of Kingdom at the average price for gold on the the note issue and 72 percent, of total sight international markets. Acting for the Treasliabilities, ratios which have not greatly ury through the agency of the Banca d'ltalia changed since that time. No change has gold was purchased from the public at 15.50 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

461 JUNE 1936 FEDERAL RESERVE BULLETIN lire per gramme compared with 12.62 lire, "Banks under Public Law"; in consequence, the rate corresponding to the official parity their shares must be registered and be the of the currency: gold could also be received exclusive property of Italian nationals and on deposit at 5 percent interest. firms. These banks, as well as other credit The decree of March 12, 1936, makes "pro- establishments, are subject to the supervisions for the protection of savings and the vision of the Office of Inspection. For the regulation of credit" by the constitution of regulation of credit at long and short term an Office of Inspection directly dependent a committee of ministers and, under it, the from a committee of ministers of which the Inspection Office, concentrate all the func- Prime Minister is chairman and including tions relating to credit institutions prethe ministers of Finance, Agriculture and viously divided between the different min- Forests, and Corporations. The Office of istries. It has further been decided that the Inspection, of which the Governor of the Istituto Mobiliare Italiano, whose President Banca d'ltalia is the head, has wide powers will be the Governor of the Banca d'ltalia, of supervision over all the banks of what- shall absorb the functions of the "Consorzio ever description in the Kingdom. In par- per Sovvenzioni su Valori Industriali" and ticular, the Office of Inspection may order Section "A" of the "Istituto per la Ricosperiodical or exceptional inspection; author- truzione Industriale". ize the issuing of bonds and shares when The new banking laws in the United these are offered by credit establishments States, the Argentine and Italy embrace subject to control; authorize the admission both the central banking organization and to the Stock Exchange of bonds and shares; the private banks; in Belgium, on the other and take decisions, binding for the banks, hand, the new measures are concerned alrelating to the limit of interest rates on de- most exclusively with the private banking posits and for advances, the repartition of structure. The emergency situation which investments with regard either to liquidity arose in Belgium during the first quarter of or to the different branches of economic ac- 1935 and which led to the devaluation of the tivity, the relation between net assets and currency on April 1, 1935, was characterized liabilities and the possible forms of employ- by an outflow of funds that deprived the ment of surplus funds, the minimum per- banks of the most liquid part of their assets centage of profits to be placed to reserves, and brought up, apart from the general quesetc. tion of banking reform, the particular ques- The Banca d'ltalia is transformed into an tion of some additional mechanism in the "Institution under Public Law" (Istituto di market to provide further liquidity. It was Diritto Pubblico) and will confine its redis- not, however, until after the devaluation count operations to the banks of: the coun- when the reflux of funds had already retry, leaving commercial and private bank- lieved the pressure on the banks that the ing business to them. Advances on securi- Royal decree of June 13, 1935, was promulties will, however, be made to the banks or gated, creating the Institute of Rediscount the public, On March 31, 1936, Governor and Guarantee. The institute is formed for Azzolini presided over the last general meet- five years with the possibility of prolongaing of private shareholders. The capital of tion for periods of five years, with a capital 500,000,000 lire, in shares of 1,000 lire, paid of 200,000,000 Belgian francs, 20 percent, up as to 300,000,000 lire or 600 lire per paid, subscribed by the banks, and with all share, will be repaid at 1,300 lire per share, its operations up to Bfcs. 2,000,000,000 guarrepresenting the paid-up capital and the pro- anteed by the State. The institute may take portionate value of the reserves. The new over from banks and others sound but not capital of 300,000,000 lire fully paid will be necessarily liquid assets at a rate of interest subscribed and held entirely by the savings not more than one percent, above the highest and other banks and the insurance com- rate for discounts or advances against pubpanies. lic securities of the National Bank. Bills As was already the case with the Banco carrying the signature of the institute may di Napoli and the Banco di Sicilia, the three be discounted by the National Bank under large banks, the Banca Commerciale Ital- the usual conditions applicable to discountiana, the Credito Italiano and the Banco di able paper. The institute is administered by Roma, have been given the position of a committee composed of a president and five Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

462 FEDERAL RESERVE BULLETIN JUNE 1936 directors nominated by the King. In this assets and liabilities at sight or short term, way it is possible for the commercial banks and (b) between the capital and reserves of to mobilize assets not otherwise eligible at the bank on the one hand and either the total the central bank, while the securities issued of all deposits or of all liabilities at sight or by the institute provide a suitable investment short term on the other. The Commission for short-term banking funds, so that the may also by a two-thirds majority vote, in surplus resources of the market would gen- agreement with the National Bank and the erally be fully utilized before recourse were Office de Redressement Economique and with had to the National Bank. At the same time, the approval of the Ministers of Finance and it is not necessary for the National Bank to of Economic Affairs, fix the maximum rate depart from its traditional practices and reg- of interest applicable to specifically desigulations as laid down by its statutes. nated categories of credit operations. The In addition to these liquidity measures banks registered with the Commission must the banking question was dealt with in a make monthly returns in a specified form more comprehensive way through the pro- to the National Bank which publishes a commulgation of a new law on July 9, 1935, gov- bined statement of the banks every three erning the activities of the commercial banks. months. The term "bank" is defined and all institu- The Banking Commission is also given tions entitled to use the term must be in- wide powers and duties of supervision over scribed with a newly-instituted Banking the issue market. The Commission must be Commission. A bank's capital must be at informed two weeks in advance of any proleast Bfcs. 10,000,000 wholly paid up (pri- posed issue of securities to the public with vate banking firms however at least 2,000,- a statement in prescribed form giving all 000 francs) and reserves must be invested relevant details as to the object of the issue in Government or certain other public se- etc. (This also applies to securities guarcurities. The provision in the law of Au- anteed by the Government, the Belgian gust 1934 prohibiting the banks from hold- Congo, provinces and communes, and to foring participations (shares, bonds, etc.) in eign issues of Belgian concerns.) If the commercial or industrial firms other than Banking Commission considers any private banks is re-enacted. Exception is made domestic issue to be of a nature to disturb where the bank acts as issuing house for the the market it may recommend a reduction of securities in question when firm participa- the total or the spreading of the emission tions may be held for a maximum of six over a period of time. If the question is not months. settled amicably, the Banking Commission The most far-reaching provisions of the may forbid the issue for a period not exceednew law are due to the creation of an auto- ing three months and may publish its decinomous Banking Commission whose ex- sion. If the Banking Commission considers penses will be paid by the National Bank, by the conditions of a proposed issue to be such whom also its secretariat is provided. The as to mislead investors as to the nature of Commission consists of a president and six the business or the rights attaching to the members appointed by Royal decree, two securities, the Commission may, if the isnominated directly by the King and two each suing house does not take account of its exfrom lists submitted by the banks and by the pressed opinion, forbid the issue for three National Bank and the Institute of Redis- months and may publish its decision; if the count and Guarantee. The Commission is issue is then made the Minister of Finance, charged generally with the application of the on the request of the Banking Commission, new law and enjoys extensive powers. A may prohibit the quotation of the securities corps of inspectors is created which reports on the stock exchange. The Commission to the Commission upon legal or other ir- may at any time demand information as to regularities and the Commission may also the results of issues made during the precharge the National Bank with special en- vious six months (while regular issuing quiries. Further, the Commission, with the houses make an annual return of issues made approval of the Ministers of Finance and of by them). Economic Affairs, may determine for the It will be seen that, although its powers banks the proportion which must exist (a) are extensive, almost all the functions of the between cash and other easily mobilizable Banking Commission are facultative and rest Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

463 JUNE 1936 FEDERAL RESERVE BULLETIN on the combined judgment of its members. tains special provisions under which a par- It is particularly intended not to disturb the tial moratorium (prolongation of maturity principle of the prime responsibility of the dates) may be granted by the Federal Counbanks towards their depositors and share- cil if it is considered that all creditors are in holders and there is thus no provision for fact covered 100 percent, by the assets and such measures as deposit insurance. the interest service can be maintained In Germany, the new law of December 5, throughout the moratorium. Two of the 1934, regarding the credit system was put larger banks have taken advantage of these into application; certain modifications were stipulations: the Basler Handelsbank was made of a more practical character, sug- allowed a partial moratorium for two years gested by the experience gained during the from June 11, and Leu & Co. for three year. Outside the field of purely private months from December 30, 1935, the latter banking, two events should be mentioned. period having been prolonged for a further Arrangements for the centralisation of the six months. Other smaller banks have also note issue came into force at the end of 1935 been in difficulties during the year but only when the privilege of the four private noteone has been granted the special conditions issuing banks expired. Their circulation, mentioned above. (In April 1936 the Fedthen amounting only to RM 158,000,000, is eral Council issued regulations complemento be withdrawn while their gold reserves, tary to the Banking Law to facilitate the reamounting together to RM 75,000,000, have organization of banks of a certain imporalready been taken over provisionally by tance in order to avoid ordinary bankruptcy the Golddiskontbank, the ultimate destinaprocedure. The validity of these regulations tion of this gold being still undecided. A expires at the end of 1937.) The Banking further concentration of the German bank- Commission created by the new bank law, ing system results from a law of October which has generally to supervise the carry- 1935 placing the ten State banks, of which ing out of the law and is particularly rethe Prussian State Bank (Seehandlung) is sponsible to satisfy itself that the accounts by far the most important, under the direct of the banks are properly audited, has comsupervision of the Reich Minister of Ecomenced its functions. Under the law the nomic Affairs, at present also the President National Bank was given the power to reof the Reichsbank. These banks had been founded in the formerly autonomous States view increases of interest rates on "Kassenwithin the country and enjoyed special priv- scheine" with the banks but no power to ileges; the Minister of Economic Affairs is dictate what rates they were to apply. The now authorized to exercise supervision over Annual Report of the National Bank menthe banks and to change their statutes. tions that during the year the withdrawals of funds from the market tended to pro- 1935, the first year during which the Swiss duce an influence on the rate of interest banks have been working under the provion "Kassenscheine" and in order to guard sions of the new general banking law, has against any unjustified increases the Nabeen a period of great difficulty. It may be tional Bank, in accordance with Article 10 recalled that the big banks doing internaof the law, called a meeting of the banks on tional business in the six years up to 1930 June 13 to review the question; the majority had experienced a period of unexampled exof banks agreed with the National Bank that pansion, their balance-sheet totals being nearly doubled. But from 1930 this move- the rates fixed in October 1933 should not be ment was abruptly reversed and in the five exceeded unnecessarily. But the increasing years to the end of 1934 the seven larger yield on first-class securities made it imposbanks suffered withdrawals of funds which, sible for a number of banks to maintain the together with other compressions of liabili- old rates in force. Up to the end of the ties, reduced the total of the combined bal- year the National Bank received notice of ance-sheet by 50 percent. This reduction 91 increases of interest rates, most of them represented an enormous pressure on the being, however, of a minor character. As banks in a period of falling prices, a propor- the National Bank remarks, experience has tion of the assets, varying greatly from bank again shown that economic laws are more to bank, being frozen abroad. The new law powerful than any artificial measures which which came into force on March 1, 1935, con- may be applied. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

464 FEDERAL RESERVE BULLETIN JUNE 1936 Summing up the developments in com- maintained than at any time since 1931. Inmercial banking during the year it may be ternational trade has shown signs of increassaid that although difficulties are still ex- ing and prices of primary products which perienced in some countries there are signs had fallen to unprecedented low levels have in others of emergence from the troubles of again begun to rise under the influence of recent years. Symptomatic of the improve- reviving demand. The depression with which ment are the repayments made by United we have been struggling these seven years States banks to the Reconstruction Finance has created difficult problems, particularly Corporation, the regained liquidity of the with regard to unemployment; but it has Belgian banks, the rapid repayment of the also helped to solve certain problems which emergency credit granted to the Skandinavcaused great concern only a few years ago. iska Kredit Aktiebolaget in Sweden at the International indebtedness both at long and time of the Kreuger crisis and the resumpshort term has been greatly reduced; interest tion of dividends by the big German banks rates, with some temporary exceptions, are for the first time since 1931. In some counlower than they have been since the war; and tries there has also been an increase of adgold production has risen to a degree elimivances to industry and commerce reflecting nating all fears of a scarcity and even creatrecovery in business and a more active use ing the prospect of an abundance, which, on of bank credit, not only for the purchase of Government securities but also the financing account of its magnitude and possible reperof a larger volume of trade and production. cussions, will need careful watching and handling. The new laws which have been passed in Technically the situation holds out hopes a number of countries have in general two of better times. But will these hopes mamain purposes. In order to protect the seterialize? We all know that purely economic curity of deposits, regulations have been and financial considerations are alone not made with the aim of preserving the liquidity decisive but that the turn of affairs will be and solvency of the banks. At the same time, very largely influenced by political developfor reasons of general credit policy, advantage has been taken of the passage of the ments. In practically every country there is new laws to give greater power to the central a rising tide of expenditure, leading to inbank or some authority in close connection creased taxation where the burden is shoulwith the bank for the supervision of the dered immediately, and, where the mounting credit machinery. It should be understood charges are met by borrowing, resulting in that also in a great many countries where no an increasing weight of debt, which mortchanges in banking laws have been made, gages the future and may have an adverse an evolution has occurred in the actual prac- influence on the position of the capital and tice of the existing credit institutions; the money markets. The increase in expenditure effective position of the central banks has in- is largely for armaments and is the consecreased in authority and leadership in rela- quence of the tense situation which weighs tion to their markets, and the best-managed so heavily on the minds of the peoples. Abcommercial banks have observed in their sence of international agreement threatens liquidity and investment policy, irrespective to retard an improvement in economic conof any binding provisions, the principles ditions which otherwise might be reasonably which the new legislation embodies. More expected; a number of outstanding economic attention is given to these matters, for the and financial problems, thorny though they experience of the past few years has everymay be, are capable of solution, given a better where made manifest the fundamental imspirit of understanding between the nations. portance of having a satisfactorily function- It must be clearly realized that the technical ing credit system. machinery of which the Bank for International Settlements is a part cannot render full CONCLUSION service so long as political tension creates an atmosphere in which no effective progress The past year has been one of great diffican be made towards an improvement of the culties and many disappointments but it has monetary and economic conditions of the not been without its more hopeful side. A world. greater degree of exchange stability has been Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN 465 JUNE 1936 BALANCE SHEET OF THE BANK FOR INTERNATIONAL SETTLEMENTS AS OF MAR. 31, 1936, AND MAR. 31, 1935 [In thousands of Swiss francs at par] Assets 1936 1935 Liabilities 1936 1935 I. Gold in bars 24,198 11,008 I. Capital: Authorized and issued 200,000 II. Cash on hand and on current account with shares valued at 500,000,000 Swiss gold banks 9,601 2,639 francs of which 25 percent paid up 125,000 125, 000 III. Sight funds at interest 12,960 15, 465 II. Reserves: IV. Rediscountable bills and acceptances: (1) Legal reserve fund 3,324 2,672 (1) Commercial bills and bankers' ac- (2) Dividend reserve fund. 5, 845 4,866 ceptances 150,250 148.451 (3) General reserve fund.-- 11, 690 9,732 (2) Treasury bills 188,279 213,976 20, 859 17,271 338, 529 362,427 V. Time funds at interest, not exceeding 3 III. Long-term deposits: months 36, 033 37, 482 (1) Annuity trust account 154,340 154, 294 (2) German Government deposit 77,170 77,147 VI. Sundry bills and investments: (3) French Government deposit (Saar)_. 2,031 2,031 (1) Treasury bills 100,006 88, 403 (4) French Government guarantee fund. 61, 930 61, 930 (2) Railway and Postal Administration bills and sundry investments 126, 838 131,945 295,471 295, 401 226, 844 220, 348 IV. Short-term and sight deposits (various currencies) : VII. Other assets 10,461 fl) Central banks for their own account: (1) Guaranty of central banks on bills (a) Not exceeding 3 months 113, 277 108,014 sold 6, 235 (b) Sight _. 26,020 23,711 (2) Sundry items 6,383 139,297 131,725 12, 619 10,461 (2) Central banks for the account of others: (a) Not exceeding 3 months 2,985 2,947 (b) Sight 11,334 22, 751 14,319 25, 698 (3) Other depositors: (a) Not exceeding 3 months1 83 2, 036 (b) Sight 813 2,220 4,255 V. Sight deposits (gold) 19, C 10,921 VI. Miscellaneous 36, 511 (1) Guaranty on commercial bills sold.. 6,278 (2) Sundry items 30, 382 36, 651 36, 511 VII. Surplus: Profit for the financial year ended Mar. 31 9,194 13, 046 Total assets.. 660, 783 659, 829 Total liabilities.. 660, 783 659, 829 i Between 3 and 6 months in 1935. B. I. S. NOTE.—The whole of the short-term and sight deposits in various currencies (Item IV—Liabilities) are more than covered by immediately available assets either in the currencies of the deposits or in currencies free from exchange restrictions, and of the long-term commitments the French Government deposit (Saar) (Item III—3) is similarly covered, while the French Government guarantee fund (Item III—4) is represented by assets available, in accordance with Article XIII of the Trust Agreement, in currencies which are free and based upon the gold or gold exchange standard. The remaining long-term commitments (Items III—1 and 2) which are recorded in a restricted currency (although Item III—1 may possibly be claimed to be rapyable on some other basis), are covered by assets of the same currency, the gold value of a substantial part of which is specially guaranteed. The capital, reserves, and surplus are represented partly by assets in free currencies but principally by assets in countries where exchange restrictions now prevail and do not permit of free conversion of their currencies into gold or other currencies; however, as to these assets an important part is secured by special contracts guaranteeing their gold value and in one case specifically permitting their transfer. Moreover, under Article X of the Hague Agreement of January 1930, the signatories thereto declared the Bank to be immune from any "prohibition or restriction of export of gold or currency and other similar interferences, restrictions or prohibitions." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

466 FEDERAL RESERVE BULLETIN JUNE 1936 MEMBER BANK RESERVES, RESERVE BANK CREDIT, AND RELATED ITEMS [In millions of dollars] Reserve bank credit outstanding Member bank Treasury reserve balances U. S. M ta o r n y e- T u re r a y s- M in o c n i e r y - c d a e s p h o s a i n ts d m N e o m n- - O F e t e r h a d e l - r Date co B d u i i n l s l t - s ed bo B u il g ls ht s m G e e c r o e u n v n - r - t i- R c O b e r a s t e h e n d r e k i v r t e Total s g t o o l c d k re c n u c r- y c t u io la n - F R b e xw e a x d s r n i e e itt k n r r h v s a e l b p e o r s d it e s - R c e o a s u c e n - r t v s e Total E m ( x e a c s t t e e i s d - s ) ties End of month figures: 1935—April 30 6 5 2,430 27 2,468 8,710 2,544 5,478 2,996 271 263 4,715 2,253 May 31 8 5 2,430 26 2,469 8,858 2,525 5, 540 2,969 254 257 4,832 2,318 June 30 6 5 2, 433 37 2,480 9,116 2,506 5, 568 2, 968 325 261 4,979 2,414 July 31 7 5 2,430 23 2,465 9,144 2,510 5,518 2,991 253 257 5,100 2,513 Au?. 31 11 5 2,432 37 2,485 9,203 2,398 5,629 2, 694 198 260 5,305 2,708 Sept. 30 10 5 2,430 32 2,477 9,368 2,386 5,683 2,740 304 250 5, 254 2,600 Oct. 31 6 5 2,430 40 2,482 9,693 2,400 5,713 2,657 299 258 5, 648 2,970 Nov. 30 6 5 2,430 39 2,480 9,920 2,438 5,846 2,619 284 253 5,835 3,100 Dec. 31 5 5 2,431 45 2,486 10,125 2,476 5,882 3,110 255 253 5,587 2,844 1936—Jan. 31 9 5 2,430 35 2,479 10,182 2,493 5,737 3.001 304 253 5,860 3,084 Feb. 29 7 5 2,430 40 2,482 10,167 2,499 5, 846 2,937 327 254 5,784 2,986 Mar. 31 8 5 2,430 31 2,474 10, 184 2,504 5,877 3,607 332 259 5,087 2,305 Apr. 30 5 5 2,430 34 2,475 10, 225 2, 500 5,886 3, 213 356 260 5,486 2,664 May 30 5 3 2,430 35 2,474 P10, 401 P2, 490 P5, 952 P3, 101 337 255 5,719 2,866 Wednesday figures: 1935—July 3 8 5 2,431 24 2,468 9,119 2,504 5,619 3,002 312 258 4,900 2,320 July 10 7 5 2,430 31 2, 473 9,123 2, 503 5,551 2,932 302 263 5,052 2,456 July 17 7 5 2, 430 30 2,472 9,127 2,501 5,530 3,086 302 258 4,924 2,340 July 24 6 5 2,430 19 2,460 9,135 2,503 5,496 3,134 265 258 4,945 2,335 July 31 7 5 2,430 23 2,465 9,144 2,510 5,518 2,991 253 257 5,100 2,513 Aug. 7 6 5 2,430 34 2,476 9,158 2,477 5, 550 2, 932 253 261 5,115 2,547 Aug. 14 6 5 2, 430 36 2,477 9,184 2,437 5,558 2.775 251 259 5, 254 2,667 Aug. 21 7 5 2,430 26 2,468 9,189 2,421 5,574 2, 722 230 260 5,291 2, 682 Aug. 28 9 5 2,430 26 2,471 9,197 2,408 5,573 2,683 213 260 5,346 2,749 Sept. 4 11 5 2,430 25 2,472 9,209 2,395 5, 650 2,746 193 259 5,228 2,643 Sept. 11 11 5 2,430 34 2, 479 9,219 2,391 5,638 2, 629 186 248 5,388 2,790 Sept. 18 10 5 2,430 27 2,472 9,240 2,390 5,632 2,839 244 250 5,136 2, 527 Sept. 25 10 5 2, 430 29 2,474 9,297 2,382 r 5, 626 2,778 262 250 5,236 2,592 Oct. 2 10 5 2,430 24 2,470 9,414 2,399 5,688 2,814 306 251 5,224 2,569 Oct. 9 10 5 2,430 34 2,478 9,463 2,396 5,698 2,747 313 250 5,330 2,694 Oct. 16 _ 9 5 2,430 52 2,496 9,584 2,404 5,696 2,693 307 254 5,534 2,878 Oct. 23 7 5 2,430 31 2,472 9,629 2,397 5,684 2,694 292 254 5,575 2,900 Oct. 30 6 5 2,430 33 2,474 9,686 2,401 5,686 2,665 296 260 5,653 2,981 Nov. 6 _ 7 5 2,430 21 2,462 9,714 2,401 5, 754 2,655 236 260 5,671 2, 993 Nov. 13 9 5 2,430 49 2,492 9,747 2,399 5, 746 2,641 249 257 5,746 3,052 Nov. 20_.__ 5 5 2,430 31 2,471 9,804 2,409 5, 739 2,648 262 253 5,782 3,069 Nov. 27 6 5 2,430 32 2,472 9, 874 2,421 5.820 2,625 282 252 5,789 3.051 Dec. 4 5 5 2,430 29 2,470 10,009 2,442 5,843 2,626 283 262 5,905 3,173 Dec. 11 6 5 2,430 33 2,474 10,068 2, 447 5,841 2,558 280 270 6,040 3,304 Dec. 18 7 5 2,430 41 2,483 10,098 2,458 5,902 3,161 281 258 5, 437 2, 706 Dec. 24 7 5 2,431 81 2,523 10,115 2,464 5,991 3,156 266 259 5,429 2,693 Dec. 31 5 5 2,431 45 2,486 10,125 2,476 5,882 3,110 255 253 5,587 2,844 1936—Jan. 8 5 5 2,430 35 2,476 10,144 2,476 5,783 3,049 265 253 5,745 3,002 Jan. 15 5 5 2,430 45 2,485 10,158 2,492 5,722 3,018 284 253 5,859 3.095 Jan. 22 6 5 2,430 36 2,477 10,172 2,498 5,704 3,093 296 253 5,802 3.030 Jan. 29 7 5 2,430 28 2,470 10,179 2,492 5, 693 3,031 301 254 5,863 3,087 Feb. 5 10 5 2,430 44 2,489 10,168 2,491 5,742 2,958 324 255 5,869 3.089 Feb. 12.. 8 5 2,430 65 2,508 10,155 2,496 5,763 2,993 364 254 5,784 3.007 Feb. 19...:. 7 5 2,430 64 2,505 10,160 2,499 5,771 2,979 327 255 5,832 3,045 Feb. 26 7 5 2,430 33 2,475 10,163 2,502 5,775 2,949 323 254 5,839 3,062 Mar. 4 6 5 2,431 34 2,475 10,167 2,506 5,848 2,898 321 269 5,813 3,043 Mar. 11 5 5 2,430 33 2,473 10,170 2,503 5,840 2,909 337 274 5,786 3,003 Mar. 18 6 5 2,430 44 2,485 10,173 2, 503 5.841 3,587 328 261 5,144 2,388 Mar. 25 6 5 2,430 45 2,485 10,177 2,502 5,837 3,667 340 261 5,059 2,315 Apr. 1 7 5 2,430 34 2,477 10,185 2,504 5,884 3,614 331 259 5,077 2,338 Apr. 8 6 5 2,430 38 2,479 10,190 2,505 5,906 3,502 346 258 5, 161 2,384 Apr. 15 6 5 2,430 35 2,477 10, 200 2, 502 5,877 3,374 335 260 5,333 2,548 Apr. 22 5 5 2,430 35 2,475 10, 209 2,501 5,860 3,269 355 260 5,442 2,640 Apr. 29 5 5 2,430 32 2,472 10, 221 2,501 5,859 3,208 362 259 5,506 2,686 May 6 5 5 2,430 38 2.478 10, 248 2,497 5,912 3,175 345 259 5,532 2,697 May 13 5 5 2,430 30 2,469 10, 302 2,496 5,888 3,161 351 257 5,611 2,774 May 20 5 5 2,430 30 2,470 10, 375 2,493 5, 896 3,138 353 258 5,694 2,859 May 27 5 4 2,430 26 2,466 10, 388 2,494 5,902 3.116 326 256 5,747 2,901 rRevised. pPreliminary. NOTE.—For description of figures in this table and discussion of their significance, see BULLETIN for July 1935, pp. 419-429. Reprints of article, together with all available back figures, may be obtained upon request from Division of Research and Statistics. Back figures are also shown in Annual Report for 1934 (table 4) and for excess reserves in BULLETIN for August 1935, pp. 499-500 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

467 .JUNE 1936 FEDERAL RESERVE BULLETIN ASSETS AND LIABILITIES OF FEDERAL RESERVE BANKS; ALSO FEDERAL RESERVE NOTE STATEMENT, MAY 30, 1936 [In thousands of dollars] Total B to o n s- Y N o e r w k P p d h h e i l i l - a a- C l l a e n v d e- m Ri o c n h d - Atl t a a n- Chicago Lo S u t. is n M o e l i a 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 - ASSETS Gold certificates on hand and due from U. S. Treasury 7,824,035 477,104 3,162, 847 392, 601562, 997242, 746199,0721, 571, 364 206, 293157,240 211,138 137,680502,953 Redemption fund—Federal Reserve notes 13, 061 2,322 1, 033 38' 94* 78! 1,908 659 992 267 1.058 460 2,246 Other cash 295, 258 27, 705 81, 562 39, 297 27, 943 19,392 9, 808 36, 774 13, 637 6, 854 16.476 5,181 10,629 Total reserves 8,132,354 507,1313, 245, 442 432, 284591, 88f 202 923210, 7881,608, 797220, 922 228. 672143,321 515,828 Bills discounted: For member banks 5,437 45: 3,382 446 110 156 120 458 185 For nonmember banks, etc 11 2 8 Total bills discounted 5,448 457 3,382 446 156 128 458 185 Bills bought: Payable in foreign currencies 3,076 224 1,091 316 293 120 108 38: 8: 61 8' 87 217 Industrial advances 30, 274 2,942 7,389 5,199 1,793 3, 772 789 2. 130 565 1,430 993 1, 677 1,595 U. S. Government securities: Bonds 265, 847 17,956 68,473 20, 755 23.973 12, 834 11,019 28,415 13, 492 14,652 13,013 19,347 21,918 Treasury notes 1, 545, 908103, 259 480, 307116,012 1433,,41? 76, 773 65,91f 169,985 81,20r 45,276 76,735 55,910 131,115 Treasury bills 618, 648 36, 462 180, 603 40, 353 50, 640 27,109 23, 275 122.764 28, 499 15, 80PJ 27,096 19,743 46. 298 Other T R o e t s a e l rv G e o b v a e n rn k m c e r n e t d i s t e : curities ... 2,430,403 157, 677 729, 383177,120 218, 025 116,716 100,209 321, 164123,200 I 7 — 5, - 734116,844 95,000 199,331 Other securities 181 181 Due from foreign banks 237 22 27 16 Reserve bank float (uncollected 10 items in excess of deferred availability items) 4,309 334 2,490 -1, 127 1, 131 2, 508 1,422 -1,831 Total Reserve bank credit outstanding 2, 473,928 161,651 743, 830182,934 219,053121,765103,682 324, 149123, 554 76, 826119,662 398 201,424 Federal Reserve notes of other banks. _ 18, 690 381 4, 485 804 1,100 2,287 1,217 2, 853 1,421 710 1,808 Uncollected items not included in float 550, 773 55, 852 147, 306 38, 345 53, 814 43, 381 25. 847 75, 66; 22, 570 15.547 24, 593 Bank premises 48,052 3,113 10, 851 5,080 6, 525 2,91^ 2, 281 4. 830 2, 453 1,531 3, 580 All other assets 41,731 281 30, 767 3,704 1,614 1,066 1,457 277 451 368 Total assets 11,265,528 728, 409 4,182, 681663,151873, 991434,341 'H5, 2752,016,842 371,197 468 260,146 '47, 601 259, 426 LIABILITIES F. R. notes in actual circulation 3, 794, 589342, 680 795, 832 285, 286 369, 611171,034 161,817 879,018 162,454 143,245 75, 766293, 868 113,978 Deposits: Member bank—reserve account._. 5, 719,490 :, 586 2, 695, 362474, 076375, 489163,144 99,044 980,610 132, 89, 805171,73*'120,322 352,903 U. S. Treasurer—general account- 517,941 177,169 25, 259 35, 947 35,895 33,189 28, 433 32, 330 25, 494 25. 42f<31,395 35, 765 Foreign bank . 53, 523 18,453 5,137 5,081 2,430 1, 933 6, 407 1, 657 1, 326 1,599 1,602 3,811 Other deposits 283,173 226,311 1,539 2,425 3,641 10,133 2, 606 9, 586 4,4' 1,600 1, 666 13,566 Total deposits 6, 574, 127 3,117,297306,011 418,942 205,110144, 299 1,018,056 175,984121,102 200,361 154,985406, 045 Deferred availability items 550, 773 147, 306 38,345 53, 814 43, 381 25, 847 75, 667 22, 570 15,54: 29, 091 18.760 24, 593 Capital paid in 130, 792 50, 866 12, 315 12,624 4,712 4, 22P 12, 022 3, 764 2. 979 3, 951 3,802 10, 154 Surplus (sec. 7) 145, 501 50, 825 13,406 14, 371 5,186 5, 616 21,350 4, 655 3,149 3,613 3,783 9, 645 Surplus (sec. 13b) 26,513 7,744 4, 231 1,007 3, 448 754 1, 391 546 1, 003 1,142 1,252 1,121 Reserve for contingencies 34,111 8, 849 3,000 3,111 1,272 2, 516 7, 573 893 1,463 844 1,328 1,849 All other liabilities 9,122 3, 962 557 511 197 1, 765 331 205 221 470 326 Total liabilities 11,265,528 728,4094,182, 681663,151873, 991434, 341345,275 2,016,842 371,197259, 426 382, 468 260,146 747, 601 Ratio of total reserves to deposit and Federal Reserve note liabilities combined (percent) 78.4 78.2 82.9 73.1 75.1 69.9 84.8 65.3 69.9 66.5 Commitments to make industrial advances 25, 070 2,817 10, 302 322 1,516 2,388 79 1,831 94 467 54; 4,410 FEDERAL RESERVE NOTE STATEMENT Notes issued to Federal Reserve banks by Federal Reserve agents 4, 049, 212361, 720 880, 262 295, 900 384, 678180, 677178, 296 912, 200 169, 768118,044 155, 542 83,101329,024 Collateral held by agents as security for notes issued: Gold certificates on hand and due from U. S. Treasury 4, 032, 523376,000 890, 706 296, 000 387, 500185, 000 147, 685 915, 000148,632120,000149,000 84,000 333, 000 Eligible paper 4,078 457 2,047 446 48 16 60 112 155 121 431 185 U. S. Government securities 65, 000 35, 000 22, 000 8,000 Total collateral 4,101, 601376,457 892, 753 296, 446 387, 548185,016182, 745 915, 000170, 744120, 155 157,121 84, 431333,185 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

468 FEDERAL RESERVE BULLETIN JUNE 1936 PRINCIPAL ASSETS AND LIABILITIES OF THE FEDERAL RESERVE BANKS, BY WEEKS [In thousands of dollars] Total B t o o s n - Y N o e r w k P p d h e h 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 p s - - K C s a a it n s y - Dallas F c S i r s a a c n n o - Total reserves: May 6 8,038,801 553355,, 33400 33,,15588,,11100 443399,, 2 27777 578, 672 284, 054 216, 2518, 528, 271 235, 741565, 000 241565 146, 284510,225 May 13 8,067, 213553355, 778833 331,15500 ,6 2642 44 43311 ,7 7747 4581, 629 279, 492 211, 2910, 552,112 232, 202 173, 217 242, 514455,132531,413 May 20 8,088,197 526,0 00 ,2,25 766 429, 715 ,9096 265,395 207, 5901,564,358 223,622167, 249 2301;,941148, 687519, 778 Tota M l b a i y l ls 2 7 discounted: 8,147, 548 5 5 1 2 6 6 , , 0 0 3 0 1 0 3 3 , , 2 2 2 2 5 9 , , 7 5 6 1 6 4 4 4 2 2 9 9 , , 4 71 2 5 2 58 5 9, 1 7 7 10 6 9 2 62, , 455 ,8 , 208, 2 1 6 , 1 617, 028 230, 961365,915 229i,, 042145,428523, 779 May 6 4,584 344 2,878 349| 991 141 355 315 May 13 4,781 362 346 146 130 383 318 May 20 _. _ _. 4,749 520 2,960 176 128 377 122 May 27 4,828 427 2,951 381 172 128 458 185 Bills bought, payable in foreign currencies: May 6 4,676 350 1,734 473 441 191 164 581 87 61 133 133 328 May 13 4,677 350 1,735 473 441 191 164 581 87 61 133 133 328 May 20 4,544 339 1,682 460 429 185 159 565 87 61 129 129 319 May 27 4,299 320 1,585 436 406 174 150 534 87 61 122 122 302 Industrial advances: May 6 30,170 2,853 7,682 5, 245 1,810 3,832 824 2,133 520 1,459 943 1,728 1,141 May 13 29,963 2,845 7,513 5, 249 3,830 811 2,118 520 1,464 941 1,723 1,140 May 20 30, 487 2, 850 7,492 5, 247 1*878 3,778 799 2,114 565 1,459 996 1,720 1,589 May 27 30, 462 2,942 7,396 5, 215 1,878 3,772 2,130 565 1,461 993 1,717 1,595 U. S. Government securities: May 6 2, 430,336157, 677 729, 383 177,120 218,025116, 716100, 209 321,164 123,:,200 75,667 116,844 95,000 199,331 May 13 2,430, 259157, 677 7"2"9",,383 177,120 218,025116,716 100",i, 209 321,164123, 200 75, 590116,844 95,000 199,331 May 20 2, 430, 247157, 677 729,, 383 177,120 218, 025116,716100, 209 321,164123, 200 7-5", 557788 116,844 9"5", 000 199,331 May 27 2,430, 255157, 677 729, 383177,120 218, 025116, 716100,209 321,164123, 200 75,586 116,844 95,000199,331 Total Reserve bank credit outstand ing: May 6 2, 478, 224161, 582 743, 749184, 761 220, 414121,880102,120 328,359122,889 77,990118,432 95,444 200,604 May 13 2, 469, 411161,378 744,368185:137 220, 032 123, 982102, 210 324,380122,957 76,936117, 740 9"4', 9"8"3" 195,308 May 20 . 2, 469, 91161, 277 745, 301185,197 219, 5"3"8 121,185102, 278 323,113122,031 77,3"0""7 117, 732 94,?3"6"0 200, 596 May 27 2, 466,190160,351 742, 632185,151220,462 l.:21,611101,150 321,' 121, 842 76, 972 118, 46695,179 200, 472 LIABILITIES Federal Reserve notes in circulation: May 6 3, 778,880343,407 786,980 279,161369,148171, 421162,009 873,322 162,253115, 303 146, 36176, 333 293,182 May 13 3, 762,028341,240 777, 855 281, 884 372, 229172, 558161,039 871,831160, 987 113, 974 142,03975, 404 290,988 May 20 . _ 3, 760, 729340, 735 778,893 280,666 3700,, ~48~5171,001161,372 873, 247""" 925 114,426 142,227"75 ,848 290, 904 May 27 3, 758, 973341,204 776, 519 282, 243 3711, 474170,025159, 725 874, 411160, 472 114, 428 141, 96275, 223291, 286 Deposits: Member bank—reserve account: May 6 5, 531,998288,944 2, 524, 216 280,, 685 36,3, 616190,205 110, 460 902, 254144, 937 82, 550173,505119,678 350,948 May 13 5,611,072 292, 404 2,, 56,1111177 227711, 446622 336699, 686186, 301109, 733 913,! 144, 503 93, 374176, 526 123, 729 368, 261 May 20 _ . 5, 694,009283,, 250 2,,, 561,, 758 274, 734 371, 731475,109103,992 935, 052134, 220 88, 482 167, 363 122, 776 368, 539 May 27 5,747, 228273, 21177 2,,6 67658,, 480 274, 540 377, 878167,016 102, 420 986,851144,484 89, 275 168, 858 121, 987 365, 222 U. S. Treasurer—general account: 675 May 6 621,759 33, 229 263,145 30, 715 34, 873 29, 794 32, 854 32, 925 36, 283 32, 238 32, 022 33, 214 30,467 May 13 577, 985 31,174 228,066 29, 642 29, 234 30, 591 29, 825 42,069 34, 271 30, 318 32, 274 29,148 31,373 May 20 . 513,104 32,188 191, 605 25, 639 23, 456 27,103 31, 394 30, 825 35, 384 29, 033 30, 253 32, 243 23,981 May 27 544,183 32, 603 201,184 26, 574 30,911 34,187 32, 961 32,800 31, 787 27,662 28, 520 32, 205 32, 789 Foreign bank: May 6 81,851 5,967 30, 649 7,499 7,419 3, 548 2,822 9,354 2,419 1,935 2,337 2,338 5,564 May 13 84, 226 6,239 30, 689 7,841 7,757 3,710 2,951 9,780 2,529 2,024 2,443 2,445 5,818 Othe M M r a a d y y e p 2 2 o 7 0 sits: 8 5 5 4, , 4 4 9 8 3 2 6 4 , , 2 0 3 8 9 7 3 1 1 9 , , 9 4 4 2 4 3 7 5 , , 8 1 4 3 1 7 7 5 , , 7 0 5 8 7 1 3 2 , , 7 4 1 3 0 0 2 1 , , 9 9 3 5 3 1 9 6, , 4 7 0 8 7 0 2 1, , 6 5 5 2 7 9 2 1, , 3 0 2 2 6 4 2 1, , 5 4 9 4 9 4 2 1 , ,6 4 0 4 2 5 3 5 , , 8 8 1 1 1 8 May 6 263,437 5,279 217, 936 2,044 1,843 2,035 1,950 3,422 7,445 4,638 919 2,026 13,900 May 13 266, 517 6,005 221,829 1,921 1,783 1,858 1,881 3,091 7,437 4,411 2,090 12,408 May 20 267, 384 4,771 222, 758 1,904 2,739 1,549 2,176 2,891 7,349 4,407 1,750 l', 56613, 524 May 27 271,122 5,189 222, 901 1,846 2,595 1,973 4,:" 2,681 7,995 4,543 1,774 1,570 13, 775 Commitments to make industrial advances: May 6 25, 842 2,918 10,333 328 1,516 2,403 374 1,932 102 590 582 4,685 May 13 26,014 2,917 10,330 326 1,522 2,398 374 1,929 94 590 582 4,873 May 20 25, 297 2,897 10, 391 326 1,515 2,389 298 1,835 94 480 581 4,412 May 27 25,095 2,812 10, 342 326 1,515 2,388 297 1,831 91 467 547 4, 397 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

469 JUNE 1936 FEDERAL RESERVE BULLETIN INDUSTRIAL ADVANCES AND COMMITMENTS UNDER SECTION 13b OF THE FEDERAL RESERVE ACT, JUNE 19, 1934, TO MAY 27, 1936 [Amounts in thousands of dollars] Applications rec- Applications approved to date by Federal Reserve banks (with and ommended for without conditions) approval by In- Applications dustrial Advi- Date ( e l a a c st h W mo ed n n th e ) sday of N r u e m ce b iv e e r d t A o m d o at u e nt Nu s t o ( e m o w u e r t i b s y t e c h o r n a t d C n o A i d o ti m m o w n o d m s i u a t ) i h n t t e - - t Numbe T r o ta A l mount a s R F d ta b e v e o n a d s a u d e n e n t r i r k - c v n a e e g l s s c R F t o m a b e e o m n a d s e u d e n e n m t r i r k - t v n a i s t e g l - A b p p l u c p e o t t r m e o n d v o - e t * d d E o r r a a r x e c w p p p w a p a i n n r l i i e t i t d - h b d , - y , i s F n p p t t a g a u i a o n n t r t u i i a i t d o n i o t n i c - n s n n c i t s - g i - - 1 1934—Dec. 26 5,053 187, 696 1,122 54, 531 984 49, 634 13, 589 8,225 20,966 5,558 1,296 1935—Jan. 30 _ 5,283 195, 710 1,341 73,470 1,168 64, 518 17, 493 11, 739 26, 362 7,160 1,764 Feb. 27 5,595 205, 581 1,432 76, 575 1,268 72, 525 19,163 13, 963 26, 591 10, 727 2,081 Mar. 27 5,897 217, 756 1,521 79, 490 1,364 76, 441 20, 785 15, 732 23, 552 13,900 2,472 Apr. 24 6,130 225, 900 1,633 86, 374 1,467 81,134 26, 206 16,908 16,956 17,185 3,879 May 29 6,428 245, 078 1,734 90, 799 1,571 86, 282 26, 977 19, 425 13, 850 21, 802 4,228 June 26 6,618 263, 482 1,815 102,331 1,646 88, 778 27, 518 20, 579 11,248 24, 900 4,533 July 31 6,863 271, 768 1,907 109, 603 1,739 103,633 28, 354 23,022 19, 735 26,911 5,611 Aug. 28 7,029 278,022 1,970 112, 629 1,786 107, 244 29, 447 26,314 15, 319 29,556 Sept. 25 7,195 292, 747 2,009 121,837 1,834 115,350 30,132 26, 892 18, 791 32,475 7,0 Oct. 30 7,388 299,927 2,083 126,192 1,901 118,378 32, 719 27, 057 13, 357 36, 565 8,680 Nov. 27 7,500 302,331 2,134 130, 502 1,948 121,947 32, 634 28,002 13,466 38, 952 8,893 Dec. 31 (Tuesday) 7,615 306, 708 2,176 132, 460 1,993 124,493 32,493 27,649 11,548 44,025 8,778 1936—Jan. 29 7,714 311,081 2,212 134, 243 2,023 125,810 32, 483 27, 004 10, 888 46, 736 Feb. 26 7,831 315, 081 2,245 135, 320 2,049 126, 643 32,129 25, 866 10,434 50, 636 7,578 Mar. 2.5 7,934 319, 595 2,294 138, 450 2,097 129, 580 30,947 25,421 11,008 54,654 7,550 Apr. 29 8,046 323, 669 2,338 140,104 2,139 131,195 30,800 25, 576 9,730 57,351 7,737 May 27_ ___ 8,113 329,316 2,374 141, 749 2,162 132, 549 30, 958 25, 095 9,343 59, 512 7,641 1 Includes applications approved conditionally by the Federal Reserve banks and under consideration by applicant. 2 Does not include financing institution guaranties of advances and commitments made by Federal Reserve banks. NOTE.—On May. 27, 1936, there were 80 applications amounting to $8,820,901 under consideration by the Industrial Advisory Committees and the Federal Reserve banks. MATURITY DISTRIBUTION OF BILLS AND SECURITIES HELD BY RESERVE BANKS [In thousands of dollars] Total W 15 i d th a i y n s 16 d a t y o s 30 31 d a t y o s 60 61 d a to y s 90 6 9 1 m t d o o a n y th s s m O o v n e t r h 6 s Bills discounted: May 6 4,584 2,877 32 709 220 May 13 4,781 3, 044 615 782 247 May 20 4,749 2, 910 612 221 703 301 May 27 4,828 2, 956 718 226 588 338 Bills bought in open market: May 6 4, 676 556 445 401 3,274 May 13 4, 677 574 315 506 3,282 May 20 4,544 432 275 815 3,022 May 27 4,299 561 2,145 607 Industrial advances: May 6 30,170 1,669 232 557 767 1,899 25,046 May 13 29, 963 1, 652 255 521 760 1,945 24,830 May 20 30, 487 1,600 241 573 749 2,069 25, 255 May 27 30,462 1,526 224 629 675 2, 055 25, 353 U. S. Government securities: May 6 430, 336 27,106 20,400 103,586 144, 744 313,975 1, 820, 525 May 13 430, 259 24,000 20,080 115,847 135, 762 305,386 1,829,184 May 20 430, 247 20, 400 67, 263 68,489 138, 728 313,945 1,821, 422 May 27 430, 255 20,080 71, 497 67, 882 133, 070 328, 206 1,809, 520 Other securities: May 6 181 181 May 13 181 181 May 20 181 181 May 27 181 181 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

470 FEDERAL RESERVE BULLETIN JUNE 1936 MEMBER BANK RESERVE BALANCES, BY CLASSES OF BANKS [Averages of daily figures. In millions of dollars] Total 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 re O 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 ot a e a n m l— k b s e a 3 r ll Ne C w i t Y yi ork r O e c s i t t e h i r e e v s r e 'C ba o n u k n s t r 2 y" 1935— April 4,436 1,715 1,831 890 2,025. 6 723.0 878.4 424.3 May 4,778 1,813 2,031 935 2,296.9 797.5 1,038. 4 461.0 June 4,979 1,969 2,092 918 2, 437. 6 915.3 1, 079. 0 443.4 July 4,970 1,938 2,072 960 2, 385. 2 867.6 1, 037. 5 480.1 August 5,232 2,306 1,989 937 2, 635. 8 1,214.2 956.4 465.3 September. _ _ 5,243 2,320 2,023 900 2, 628. 0 1,177. 3 979.5 471.2 October 5,469 2,460 2,101 908 2,819.7 1,308. 8 1, 035. 2 475.7 November 5,757 2,563 2,253 941 3,061. 2 1, 392. 7 1,162.1 506.4 December 5,716 2,541 2,239 935 2, 982. 7 1, 350. 4 1,133.1 499.2 1936—January 5,780 2,593 2,209 978 3, 032. 7 1, 395. 4 1, 090. 4 547.0 February 5,808 2,579 2,231 998 3, 037. 8 1,360.1 1,110.5 567.3 March 5,420 2,271 2,171 978 r 2,653. 3 1,055. 8 1,054. 2 r 543. 3 April3 5,300 2,163 2.181 956 2, 509. 7 939.9 1, 058. 3 511.5 Week ending (Friday): 1936—Mar. 6 5,782 2,530 2,257 995 3,003. 0 1, 303. 9 1,140. 4 559.0 Mar. 13 5,773 2, 394 2,350 1,029 2,997.0 1,166. 2 1, 230.1 601.0 Mar. 20 5,316 2,194 2,134 988 2, 547. 0 974.8 1,014.6 558.0 Mar. 27 5,059 2,084 2,029 945 2, 313. 0 894.0 911.7 507.0 Apr. 3 5,084 2,162 2, 005 917 2,325. 0 944.1 904.7 476. 0 Apr. 10 5,150 2,127 2,085 938 2, 393. 0 910.7 971.9 510.0 Apr. 17 5,283 2,133 2,192 957 2, 501. 0 913. 2 1,064. 5 523.0 Apr. 24 5,408 2,169 2,272 967 2,613.0 945.0 1,138. 5 530.0 r Revised. 1 Central reserve city banks only. 2 Weekly figures of excess reserves of all member banks and of country banks are estimates. 3 For total reserves and estimated excess reserves of all member banks during the following month, see table on p. 466. Back figures.—See Annual Report for 1934 (table 67). MEMBER BANK RESERVE BALANCES, BY DISTRICTS [Averages of daily figures. In millions of dollars] Boston New York Philadelphia Cleveland Richmond Atlanta Total Excess Total Excess Total Excess Total Excess Total Excess Total Excess 1935—April 295.7 161.8 1, 920. 8 810.5 221.5 92.4 308. 6 157.4 142.4 70.5 85.6 27.7 May 296.6 161.2 2, 031. 0 896. 3 221.3 89.8 320.3 162. 3 149. 6 76.2 84.2 26.4 June 291.3 154.4 2,169. 7 997.0 226.6 91.4 299. 8 139.0 144.3 70.5 86.5 29.0 July 303.2 162.0 2,148. 4 956. 5 225.8 88.4 309.3 147.0 151. 3 76.7 104.3 47.1 August 296.4 157.9 2, 507. 2 1, 294. 4 232.3 95.9 316. 1 153.3 156.9 81.9 101.7 44.5 September 305.8 167. 5 2, 518. 1 1, 261. 2 242.5 106.9 330. 2 171.7 159.5 87.4 102.8 46. 1 October. __ 303.5 164.7 2, 655. 7 1, 389. 1 262. 1 123.2 327.8 170.4 163.2 89. 1 104.7 45.9 November. 318.8 179.9 2, 769. 5 1,483. 0 268.6 128.7 358.8 198.3 169.1 94.0 109.1 48.9 December. 336.5 196.0 2, 756. 4 1, 448. 9 266.3 124.1 335.8 172.9 170.0 93.6 108.3 45.9 1936—January. __ 375. 8 234.1 2, 823.1 1, 509. 0 294.3 149.3 339.3 176.7 170.2 92.7 111.6 48.9 February.. 368.5 225.4 2, 821. 5 1, 486. 4 283.2 137.8 349. 9 187.2 176.8 99.1 120.6 58.9 March 324.3 179.9 2,495. 3 1,163. 4 295.2 149.4 355.9 190.8 193.8 118.1 118.9 56.3 April 299. 6 153.8 2, 392. 1 1, 049. 6 292.5 143.9 379.3 180.5 105.4 112.8 48.0 Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Total Excess Total Excess Total Excess Total Excess Total Excess Total Excess 1935—April 685.4 368.4 124.9 56.4 96.3 48.2 175.1 92.1 113.2 56.0 266.9 84.1 May 893.3 549.8 111.9 41.5 101.6 54.1 186.4 100.3 107.6 50.6 274.0 88.6 June 950. 1 596. 5 137.9 67.8 113.0 63.6 181.9 93.2 109.0 51.6 268.7 83.6 July 868.0 504.2 157.6 86.2 118.3 68.7 181.0 92.3 118.2 59.8 284.9 96.3 August 778. 6 419.7 144.6 74.3 115.1 67.9 173.8 87.3 120.8 61.0 288.7 97.8 September. 742.9 388.5 147.4 77.7 104.9 60.7 172.8 90.2 106.7 51.7 309.2 118.3 October. _. 784.0 423.0 163.8 92.4 106.0 59.0 170.5 87.4 107.3 51.0 319.9 124. 3 November. 880.0 504.7 168.9 95.8 108.2 60.3 171.0 88.1 116.5 59.4 318.7 120.0 December. 880.4 502.9 165.0 90.9 104.2 55.8 171.8 89.6 119.5 62.4 301.4 1936—January... 793.9 412.3 157. 8 83.4 110.5 62.4 175.8 95.5 128.4 71. 1 299.0 97.2 February.. 802.5 414.5 165.6 91.5 121.9 74.2 175.4 96.4 127.9 72.0 294.3 94.6 March 773.7 390.0 150.0 76.7 116.1 69.3 168.1 128.8 72.0 300.3 '98.6 April 778.0 403.0 142.0 68.1 82.4 35.8 162.4 124.5 67.0 354.2 145.4 r Revised Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

471 JUNE 1936 FEDERAL RESERVE BULLETIN KINDS OF MONEY IN CIRCULATION [Outside Treasury and Federal Reserve banks. In millions of dollars] End of month Total i 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 r u o e r t 1 a y e 8 s s 9 - 0 S s u i i b a l s v r i e y d r - M c i o n i o n r U S n n t o a i t t t e e e s s d R F n e e o s d e t e e r r s v a e l R F n b e e o a d se t n e e r k r s v a e l t n b i N o o a n t n a e - k a s l 1935—May 5,540 119 695 296 125 281 3,159 747 June 5,568 117 701 297 125 285 3,223 704 July 5,518 115 702 298 125 280 3,232 654 August 5, 629 114 739 298 126 283 3,362 596 September 5,683 112 756 302 127 286 3,439 553 October.... 5,713 111 773 306 128 281 3,495 514 November. 5,846 110 812 309 130 284 3,612 487 December. 5,882 109 828 312 131 275 3,667 458 1936—January. __ 5,737 107 809 303 129 259 3, 598 436 February.. 5, 846 106 841 304 129 254 3,696 421 March 5,877 104 864 307 131 245 3,727 406 April 5, 886 103 886 309 132 249 3. 726 391 May P 5,952 102 914 312 133 265 3, 760 378 Preliminary. Back figures.—See Annual Report for 1934 (table 49). PAPER CURRENCY OF EACH DENOMINATION IN CIRCULATION [Outside Treasury and Federal Reserve banks. In millions of dollars] End of month Total1 $1 $2 $10 $20 $50 $100 $500 1,000 $5,000 $10,000 s U or n t a e s d - 2 1935—April 5, 028 411 749 1, 266 1, 300 340 580 116 230 May 5, 087 420 760 1,290 1,309 343 588 115 225 11 June 5,114 419 760 1,296 1,309 349 598 116 225 5 July 5, 063 415 755 1,273 1,289 344 596 116 231 4 August 5, 172 424 778 1,324 1, 313 347 598 116 233 11 September 5, 220 433 788 1,334 1,321 349 603 118 232 12 October... 5, 245 435 787 1,337 1,329 354 610 119 233 11 November. 5, 374 448 815 1,380 1,354 356 617 120 234 5 December. 5,404 460 815 1,373 1,359 358 627 122 239 1936—January _._ 5,272 434 782 1,333 1,332 355 627 122 240 February.. 5,379 434 802 1,373 1, 360 361 633 123 243 March 5,405 439 804 1,378 1, 361 362 641 125 247 5,411 442 804 1,379 1, 360 360 643 126 249 10 April 1 Total of amounts shown by denominations less unassorted amounts in Treasury and Federal Reserve banks. 2 Includes $1,000,000 of currency of unknown denominations reported by the Treasury as destroyed. Back figures.—See Annual Report for 1934 (table 50). TREASURY CURRENCY OUTSTANDING SHIPMENTS AND RECEIPTS OF UNITED STATES PAPER CURRENCY [Held by Treasury and Federal Reserve banks and in circulation, In millions of dollars] [By selected banks in New York City. In thousands of dollars] End of month Total S d s o t a i a a l l n r v l n d d a e d r r - s S i s a u id r b y - - M co in in or U S n ta i t t e e s d s F e e R e r r e a v d - l e - t b i N o a n n a- a k l Month m E S e u n h r t i o s p p - e to R E e f u r c o r e o m i p p e ts rec N e e ip t ts silver silver notes bank notes 1935—May 1,012 1,612 600 l b io u n l- 1 notes J J u u n ly e 2 1 8 9 6 1 2 1 , , 2 4 6 5 1 1 1 1 , , 2 9 6 7 0 5 August 282 2, 289 2,007 1935— J M un a e y 2 2, , 5 5 2 0 5 6 8 85 5 9 0 3 31 1 3 3 1 1 3 3 2 3 3 34 4 7 7 8 8 8 4 7 7 6 9 9 5 N S O e o c p t v o t e e b m m er b b e e r r . 4 2, , 2 7 5 0 2 3 3 1 6 1,1 8 7 5 6 8 7 4 2 3 1 , , 4 4 6 2 3 7 1 6 2' J A u u ly g us . t 2 2 , , 3 5 9 1 8 0 8 9 8 0 4 5 3 31 1 6 5 1 1 3 3 4 4 3 3 4 4 7 7 8 7 1 8 6 7 1 5 9 0 December- 603 851 248 September - 2,386 940 317 134 347 75 573 1936—January... 748 2,743 1, 995 October 2,400 997 320 134 347 72 530 February.- 13 3,317 3,304 November - 2,438 1, 066 322 135 347 70 499 March 1, 757 3,109 1, 352 December. - 2,476 1,124 328 136 347 68 473 April 3, 095 938 2, 157 1936—January 2,493 1,172 328 137 347 64 446 May 3,852 1, 685 2,167 February__ 2,499 1,197 328 137 347 62 429 A M M p a a r r y i c l p h 2 2 2 , , , 5 5 4 0 0 9 4 0 0 1 1 1 , , , 2 2 2 3 3 1 0 6 8 3 3 3 3 3 2 0 0 9 1 1 1 3 3 3 8 7 8 3 3 3 4 4 4 7 7 7 5 5 5 7 5 9 4 3 38 9 1 4 8 3 pp. 1 F o N 7 r - e 9 t d . e sh sc ip ri m pt e io n n ts . and back figures see BULLETIN for January 1932, 1 Includes silver held against silver certificates amounting to $1,106,000,- 000 on May 31, 1936. p Preliminary. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

472 FEDERAL RESERVE BULLETIN JUNE 1936 GOLD STOCK AND GOLD MOVEMENTS IN THE UNITED STATES ANALYSIS OF CHANGES IN MONETARY GOLD MOVEMENT OF GOLD TO AND FROM STOCK UNITED STATESl [In millions of dollars] [In thousands of dollars] Year or month y m a s G e t t o a o o o e r n c f l n d t k o d h r I i n n st c o g r c e o k a ld se im g N o p e l o d t rt r m e f N e r l a o e a e r a m r t k - s i e f O ac th to e r r s2 From or to— May Ap 19 r 3 il 6 January-May Im- Ex- Im- Ex- Im- Exports ports ports ports ports ports 1932 4,226 52.9 -446. 2 457.5 41.6 1933 4,036 -190.4 -173.5 -58.0 41.1 1934 8,238 4,202. 5 1,133. 9 82.6 2,986.1 Belgium 1 England _ 4,003 1,541 48 11, 642 5,042 1935—January 8,391 153.3 149.4 1.1 2.8 France 133,157 1,564 138,248 17,180 February 8,527 135.3 122.8 .2 12.3 Germany 2 7 March 8,567 40.4 13.0 -.7 28.1 Netherlands 8 751 8 752 3 765 April 8,710 143.4 148.6 -2.3 -2.9 Switzerland 0 May 8,858 148.1 140.0 -1.5 9.6 Union of Soviet June _ ._ 9,116 257.1 230.4 1.0 25.8 Socialist Re- July 9,144 27.9 16.2 -.4 12.1 publics 1,043 814 5,760 August 9,203 59.5 46.0 1.8 11.7 Canada 1 700 5 11 236 3 25 660 37 September . 9,368 165.0 156.7 1.0 7.3 Central America 358 268 1,629 October 9,693 325.2 315.3 -1.9 11.8 Mexico 4 322 6 713 7 551 321 November 9,920 226.7 210.6 .6 15.5 Argentina 5 December 10,125 205.2 190.0 1.3 13.9 Chile 303 1,249 3,545 1936—Ja Y n e u a a r ry 1 10 0 , , 1 1 8 2 2 5 1,88 5 7 7 . . 2 2 1, 7 4 3 5 9 . . 6 0 -1. . 7 2 1 1 4 3 8 . . 3 0 P C E U ec o r ru u l u o a g m d u o a b y r i a _ 2,1 5 2 0 3 0 0 9 1 1,7 6 1 4 4 8 2 7 4 5 1 1 , , , 5 8 2 7 9 85 4 6 February 10,167 -15.5 -16.6 -9.5 10.6 Venezuela 56 48 244 March 10,184 17.2 5.5 1.0 10.7 Australia 1,029 651 8,748 April 10, 225 41.0 28.1 -.2 13.1 British India 9,720 5,106 26, 571 May 10,401 176.3 170.0 -3.2 9.6 China and Hong Kong ___ 847 385 3,148 Dutch East Indies p Preliminary. Japan Philippine Islands 1,735 1,716 7,785 1 Gold released from earmark at Federal Reserve banks less gold All other countries2. 90 241 791 placed under earmark (with allowance when necessary for changes in gold earmarked abroad for account of Federal Reserve banks). Total 169, 957 5 28, 106 51 258,841 26, 346 a Figures are derived from preceding columns and indicate net result of such factors as domestic production, movements into and out of nonmonetary use, imports and exports that do not affect gold stock 1 Figures represent customs valuations which, with some exceptions, during the month or year, and increment resulting from reduction in are at rate of $35 a fine ounce. weight of gold dollar. 2 Includes all movements of unreported origin or destination. Back figures.—See Annual Report for 1934 (table 44). Back figures—See table, p. 497, and Annual Report for 1934 (tables 46 and 47). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

473 JUNE 1936 FEDERAL RESERVE BULLETIN ALL BANKS IN THE UNITED STATES [Comprises all national banks in the continental United States and all State commercial banks, trust companies, mutual and stock savings banks and such private and industrial banks as are included in abstracts issued by State banking departments. Also includes, during the period June 1934-June 1935, private banks which, pursuant to the provisions of sec. 21 (a) of the Banking Act of 1933, submitted condition reports to the Comptroller of the Currency. Under the amended provisions of Sec. 21 (a) private banks no longer report to the Comptroller of the Currency. For comparative figures of private banks included in the figures from June 1934 to December 1935, see Federal Reserve Bulletin for December 1935, p. 883, and May 1936, p. 398.] NUMBER OF BANKS DEPOSITS, EXCLUSIVE OF INTERBANK DEPOSITS Nonmember [In millions of dollars] Member banks banks Nonmember banks Call date Total Total ti N on a- al State M s b a a u v n t i u n k a g s l s m O n b t o e e h m n r e - r - Call date All banks M b e a m nk b s er M sav u i t n u g a s l no O n t m he e r mbanks banks ber banks 1931— D S e e c p . t . 3 2 1 9 2 1 1 9 , , 2 9 9 6 4 6 7 7 , , 2 5 4 9 6 9 6 6 , , 6 3 5 6 3 8 9 8 4 7 6 8 16 5 0 9 0 7 1 1 3 2 , , 0 12 9 3 5 1931— D S e e c p . t 3 2 1 9 4 45 9 , , 1 8 5 2 2 1 2 27 9 , , 4 46 3 9 2 i 1 1 0 0 , , 1 0 0 1 5 7 8 9, , 6 2 6 8 6 4 1932— S D J e u e p c n . e t . 3 3 3 1 0 0 1 1 18 9 8 , , , 7 0 3 9 4 9 4 6 0 6 6 6 , , , 9 9 8 0 8 1 4 0 6 6 6 6 , , , 0 1 0 8 4 1 0 5 1 8 8 8 2 3 0 4 5 5 15 5 5 9 9 9 4 4 4 1 1 10 1 1 , , , 9 2 4 8 ^ 7 6 0 2 1932— D S J e u e p n c. e t . 3 3 3 1 0 0 4 4 4 1 1 1 , , , 9 6 9 4 6 4 3 3 2 2 2 2 4 4 4 , , , 8 9 7 0 0 5 3 3 5 i 1 1 1 0 0 0 , , , 0 0 0 2 2 2 0 2 0 7 6 7 , , , 1 8 0 8 2 1 8 0 8 1933— O D Ju e c n c t . . e 2 3 3 5 0 0 3 2 1 1 4 5 , , 5 0 1 1 9 1 6 5 5 , , , 6 0 8 0 1 1 6 8 1 4 5 5 , , , 0 8 1 5 5 9 2 4 7 8 7 7 5 6 0 7 6 9 5 5 7 7 9 6 8 8, , 4 3 2 3 1 7 1933— D O Ju e c n c t . . e 2 3 3 5 0 0 3 2 . . 3 38 7 , , 9 5 9 0 8 5 * 2 2 2 3 3 3 , , , 3 4 7 3 5 7 8 3 1 9 9 , , 7 7 1 0 3 8 4 5 , , 9 02 4 6 6 1934 J D O M u e c n a c t e . . r . 1 3 3 5 7 1 0 3 3 1 1 5 6 , , 0 8 3 3 9 5 6 6 6 6 , , , , 2 4 3 4 0 4 7 3 6 2 5 3 5 5 5 5 , , , , 4 4 2 4 6 1 8 6 2 7 8 1 9 9 9 98 1 5 7 0 8 8 2 5 5 7 78 9 8 9, , 0 8 1 8 8 2 1934— J D O M u e c n a c t e . r . 1 3 3 5 7 1 0 3 3 4 4 4 1 , ,8 7 7 7 0 0 2 2 2 2 5 6 8 7 , , , , 2 6 4 9 9 8 1 4 3 4 5 3 9 9 , , 7 8 8 2 0 8 6 5 , , 0 4 0 7 0 5 1935— J N D M u e o n a c v e . r . . 3 2 1 4 1 9 1 1 1 15 5 6 5 , , , , 0 9 8 9 2 0 3 9 4 4 4 6 6 6 6 6 , , , , 4 4 4 3 1 2 0 8 0 2 0 7 5 5 5 5 , , , , 3 4 4 4 8 4 2 0 6 6 5 3 1,0 9 9 9 0 7 9 8 1 6 7 5 5 5 5 5 7 7 7 7 9 0 1 1 9 8 8 9 , , , , 0 0 8 9 2 1 7 3 3 3 9 3 1935— J N D M u e o n a c v e . r . . 2 3 4 1 9 1 .. _ 4 4 4 4 7 5 8 4 , , , , 4 5 9 7 5 2 6 6 5 2 4 6 2 3 2 3 8 9 1 2 , , , , 0 1 4 5 5 7 9 8 9 2 6 9 9 9 9 9 , , , , 9 9 9 8 3 2 3 6 6 0 7 3 6 6 6 6 , , , , 3 8 0 5 5 4 2 1 0 2 9 3 1936—Mar. 4 3 6,377 5, 375 1,002 1936—Mar 4;! 31, 774 For footnotes see table below. For footnotes see table below LOANS AND INVESTMENTS [In millions of dollars] All banks Member banks Nonmember banks Call date Mutual savings banks Other nonmember banks Total Loans I m nv e e n s t t s - Total Loans I m nv e e n s ts t- Invest- Invest- Total Loans ments Total Loans ments 1931—Sept. 29 53, 365 33, 750 19, 615 33,073 20, 874 12,199 i 10, 506 i 6,169 i 4, 337 9,786 6,707 3,079 Dec. 31 49,704 31,305 18, 399 30,575 19, 261 11,314 10,488 6,218 4,270 8,641 5,827 2,814 1932—June 30 46,071 27, 834 18,237 28,001 16, 587 11,414 10, 316 6,130 4,186 7,755 5,117 2,637 Sept. 30 .. . 45, 852 26, 985 18, 867 28,045 15, 924 12,121 i 10,316 i 6,130 i 4,186 7,491 4,931 2,560 Dec. 31 44, 946 26,063 18, 883 27, 469 15, 204 12, 265 10,182 6,079 4,103 7,295 4,780 2,515 1933— O Ju c n t. e 2 3 5 0 3 2 40,076 22, 203 17, 872 2 2 4 4 , , 9 7 5 8 3 6 1 12 3 , , 0 8 5 5 9 8 1 11 1 , , 8 9 9 2 4 8 10,044 5,941 4,103 5,246 3,404 1,841 Dec. 30 .. . 40,319 21, 977 18, 342 25, 220 12,833 12, 386 9,985 5,906 4,079 5,115 3,238 1,877 1934-Mar. 5 3 26, 548 12, 706 13, 842 June 30 42, 502 21, 278 21, 224 27,175 12, 523 14, 652 9,904 5,648 4,256 5,423 3,108 2,315 Oct. 17 3 27, 559 12, 293 15, 267 Dec. 31 _. 43, 458 20, 473 22,984 28,150 12,028 16,122 9,782 5,491 4, 231 5,526 2,955 2,571 1935—Mar. 4 43,747 20,394 23, 353 28, 271 11, 953 16,318 9,775 5,478 4,297 5,701 2,963 2,738 June 29 44, 416 20, 272 24,145 28, 785 11, 928 16,857 9,852 5,341 4,511 5, 779 3,003 2,777 Nov. 1 45,008 20,140 24,868 29, 301 11,841 17,460 9,854 5,302 4,552 5,853 2,997 2,856 Dec. 31 .. __ 45, 717 20, 329 25, 388 29, 985 12,175 17,810 9,804 5,210 4,594 5,929 2,944 2,985 1936—Mar. 4* 30, 288 12, 099 18,189 1 Figures of preceding call carried forward. 2 Beginning June 30,1933, all figures (other than for mutal savings banks) relate to licensed banks only, with some exceptions as to nonmember banks. 3 Nonmember bank figures not available. * Prior to Dec. 30, 1933, member-bank figures include interbank deposits not subject to immediate withdrawal, which aggregated $103,000,000 on that date. Back figures.—See Annual Report for 1934 (tables 60 and 61). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

474 FEDERAL RESERVE BULLETIN JUNE 1936 ALL MEMBER BANKS—LOANS AND INVESTMENTS [In millions of dollars] Loans to customers (except banks) Open-market loans Investments U.S. Govern- Purchased paper ment obliga- Call date i m T n lo a v o e n a e n t n d a s t s l t s - Total C Y N k b o s T r i i e o u e o d t o r r t w - y e s - k ' o se t t T o h i c e n o u e s r r s i- e l R o st a e a n a t l s e a b a p c o a R n i c o w n n c e e r g - k e n p t- s s t- ' O c c u w a u u n s t n e h i r r s s - e e d e e e d d r - - b L a o t n o a k n s s a U a c b p n A n e l a e i c c p y t - e t e i - - s n d a B p a b a b i r l o y l l e a s - db p C m o c a o u i p e a m g r e l - h r - t k L C Y N e b o r i r t o e s o t a o y r w - n i k * n s Total Direc t t ion m F g s u u te a l e l r y d - s O e ti c t e u h s r e i r - States TOTAL—ALL MEM- BER BANKS 1933—June 30 2 24, 786 11,337 3,752 2.372 192 4,857 330 291 87 788 1,928 6,887 5,041 Oct. 25 24, 953 11,523 178 3, 631 2,364 257 5,092 297 303 164 748 1,894 6,801 5,093 Dec. 30 25, 220 11,315 166 3,606 2, 359 213 4,972 287 223 132 840 2,386 7, 254 5,132 1934—Mar. 5 26, 548 11,093 164 3,480 2,382 250 4,817 225 350 157 855 3, 842 8,667 181 4,995 June 30 27,175 10,804 208 3,309 2,357 210 4,721 153 264 200 1,082 4,652 9,137 3 276 3 5, 239 Oct. 17 27, 559 10, 782 167 3,158 2,297 229 4,932 149 276 253 802 5, 267 9,186 709 5,372 Dec. 31 28,150 10, 509 187 3,110 2,273 232 4,708 155 256 232 843 6,122 9,906 989 5,227 1935—Mar. 4 28, 271 10,420 184 3,031 2, 250 207 4,748 133 235 255 875 6,318 9,821 1,200 5,298 June 29 28, 785 10, 369 192 2, 931 2,277 135 4,834 119 201 247 975 6,857 9,871 1, 558 5,427 Nov. 1 _ . 29, 301 10,465 179 2,885 2,279 159 4, 963 94 154 260 841 7,460 .0,080 1,764 5,615 Dec. 31 29, 985 10, 548 196 2,893 2,284 169 5,006 181 272 1,047 7,810 0, 501 1,768 5,541 1936—Mar. 4 30, 288 10, 460 211 2,832 2,301 156 4,960 164 1,089 8,189 0, 564 1,880 5,745 NEW YORK CITY 4 1933—June 30 2 7,133 2,297 1,044 157 120 162 224 10 720 3, 709 2, 551 1,158 Oct. 25 6, 971 2,436 985 149 179 1,075 143 233 624 3,501 2,320 1,181 Dec. 30 6,995 2,395 989 148 130 1,084 146 170 706 3,542 2,362 1,179 1934—Mar. 5 7.351 2, 321 156 171 1,009 112 276 687 3, 932 2,768 105 1,059 June 30 7, 666 2,202 156 144 965 68 225 883 4,265 3,053 3 157 1, 056 Oct. 17 7, 545 2,294 826 150 159 1,108 66 232 631 4,300 2,954 237 1,109 Dec. 31 7,761 2,202 820 139 164 1,024 63 210 662 4,602 3,246 278 1,078 1935—Mar. 4 7, 783 2,198 805 139 145 1,054 52 203 678 4,628 3,200 298 1,131 June 29 8,303 2,146 783 138 82 1,085 48 183 930 4,983 3, 462 348 1,174 Nov. 1 8, 167 2,185 775 136 101 1,114 35 135 828 4,968 3,340 405 1,223 Dec. 31 8,418 2,196 793 140 107 1,096 42 158 1,018 4,985 3,425 401 1,159 1936—Mar. 4 8,802 2,215 792 148 1,112 29 141 1,043 5,355 3, 602 505 1,248 OTHER RESERVE CITIES 1933—June 30 J 9,780 4,846 111 1,590 1,160 1,915 129 51 58 4,621 2,867 1,754 Oct. 25 9,951 4,912 117 1,542 1,144 2,033 120 91 100 4,645 2,889 1,757 Dec. 30 10,157 4,797 106 1,524 1,151 1,937 103 78 112 5,000 3,209 1,790 1934—Mar. 5 10,816 4,669 101 1, 465 1,158 1,870 79 89 138 5,763 3, 954 75 1,734 June 30 11,054 4,586 138 1,388 1,145 1,853 53 115 154 6,104 4,102 3 94 3 1, 908 Oct. 17 11,367 4, 562 102 1,319 1,120 1,956 55 151 123 6,423 4,240 257 1,926 Dec. 31 11,609 4, 459 118 1,294 1,108 1,873 65 135 131 6,764 4,551 356 1,857 1935—Mar. 4 11,739 4,436 113 1, 261 1,093 1,909 56 142 134 6, 933 4, 601 453 1,878 June 29 11,743 4,425 120 1,216 1,120 1,917 50 126 26 7, 093 4.478 658 1,957 Nov. 1 12, 313 4, 522 107 1,209 1,117 2,034 40 124 10 7,589 4, 865 751 1,973 Dec. 31 12,647 4,599 123 1,206 1,109 2,100 39 132 22 7,824 5,136 744 1, 944 1936—Mar. 4 12, 601 4,527 132 1,174 1,110 2, 056 36 130 31 7,845 5,090 745 2,011 COUNTRY BANKS 1933—June 30 2 7,873 4,194 1,117 1,055 2,005 27 3, 598 1,469 2,129 Oct. 25 8,031 4,175 1,104 1,070 1,984 46 3,748 1,592 2,156 Dec. 30 8, 068 4,123 1,092 1,061 1,952 34 3,845 1,683 2,162 1934—Mar. 5 8,381 4,103 1,077 1,068 1, 937 54 4,148 1,946 2,202 June 30 8,456 4,016 1,039 1,056 1,903 72 4,283 1,982 3 25 3 2, 276 Oct. 17 8, 649 3,926 1,012 1,026 1,868 95 4,545 1,992 215 2,337 Dec. 31 8,780 3,849 996 1,026 1,810 92 4,756 2,108 355 2,293 1935-Mar. 4 8,749 3, 786 966 1,018 1, 785 109 4,757 2,020 448 2,289 June 29 8,739 3,798 932 1,020 1,831 116 4,780 1,931 553 2,296 Nov. 1 8,821 3,758 902 1,026 1,815 132 4, 903 1,874 609 2,419 Dec. 31 8,919 3, 754 894 1,035 1,810 135 5,002 1,940 623 2,439 1936—Mar. 4____ 8,885 3, 716 865 1,043 1,791 145 4,989 1,873 630 2,486 1 Loans (secured by stocks and bonds) to brokers and dealers in securities. 2 Beginning June 30, 1933, figures relate to licensed banks only. 3 An estimated small amount of Home Owners' Loan Corporation bonds fully guaranteed by the United States Government is included in 'Other securities" on this date. * Central Reserve city banks. Back figures.—See BULLETIN for November 1935, pp. 722 and 723, or reprint, which may be obtained from Division of Research and Statistics. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

475 JUNE 1936 FEDERAL RESERVE BULLETIN ALL MEMBER BANKS—RESERVES, DEPOSITS, AND BORROWINGS [In millions of dollars] Demand deposits Time deposits Cash Call date s b s w F e e R R a e r e r i n r v e e a t d v k - h - e l - e s s C va i a n u sh lt b a w m a B n d t n i e i a c o c k t s e l - h - - s s 1 r o i e e t p t i p f d l e e r o e i o o s n m c c n s a c r o - s t s - 2 l - - b m D a I t n i e n o c s k t - - e s rb b a e F a n i o n k g r k n - s S U m G e t e a n r e o d n t i n v e - t t - - s f P u l u n ic d b- s c c C l h c c e e a o r f e e e i a t e t f o n e c c f t r s r d f d i e d t . s k h - i 3 i r ' s t - s , , s t p p u I i v n h c e n o o a a o i t e i d r n c d l r p r r s a t . - - - i s s - , - - , , j i d m u t e s D s a p t e a n e o - d d d s - - 4 b m I D a t n i e n o c t s k - e - s rb b a e F a i n o n g k r k n - s f P u u l n i b c d - s P s in t a o a g v s l s - - s t p I p u i v n h c e n o o a a o i e i t d n r d r l c p r r s a t i . s - - - s - , - - , , r B i o n o w g r s - - TOTAL—ALL MEM- BER BANKS 1933—June 30 s ... 2,235 405 2,008 1,485 3,057 145 806 ,087 657 11,830 12, 089 89 1 300 788 7,803 191 Oct. 25 2,651 447 1,917 1,060 2,990 117 918 ,106 465 11, 873 12, 384 87 6 270 781 7,971 188 Dec. 30 2,678 471 2, 031 1,132 3,139 129 967 ,320 378 12,109 12, 674 83 7 301 778 7,957 143 1934—Mar. 5 3,148 486 2,376 1,159 3,676 173 1,790 ,425 549 12, 252 13, 066 92 7 305 755 8,258 91 June 30. 3,819 473 2,760 1,057 4,070 155 1,658 ,598 372 13, 349 14, 261 122 8 333 585 8,763 35 Oct. 17 3,976 550 2,929 1,407 4,466 136 1,143 ,680 590 14, 449 15,312 135 4 294 472 8,916 24 Dec. 31 4,082 609 3,149 1,903 4, 569 147 1,636 ,799 838 14, 951 15, 686 134 7 294 452 9,020 13 1935—Mar. 4 4,518 534 3,386 1,475 5,095 169 1,270 1,861 741 14, 872 15, 999 145 8 290 399 9,203 17 June 29 4,933 537 3,396 1,183 4,978 273 779 2,091 417 16, 206 17, 530 136 5 285 307 9,462 9 Nov. 1 5,662 541 3, 760 1,756 5, 558 361 650 2,251 686 17, 327 18, 509 132 6 310 227 9,671 9 Dec. 31 5,573 665 3,776 2,255 5, 696 444 844 2,139 882 18, 035 18, 801 151 5 361 218 9, 680 6 1936—Mar. 4 5,784 624 3,970 1,718 6,148 394 600 2,173 779 17, 927 19,161 152 5 344 167 9,784 11 NEW YORK CITY 6 1933—June 30 5 846 101 874 1, 255 127 332 96 461 4,676 4,358 22 1 4 110 671 8 Oct. 25 968 90 553 1,215 100 379 71 299 4,513 4,330 1 5 10 106 680 31 Dec. 30 903 93 476 1,200 112 422 141 167 4,494 4,325 1 6 14 107 620 5 1934—Mar. 5 1,170 91 631 1,402 154 843 109 368 4,422 4,268 7 13 105 600 June 30 1,417 97 415 1,591 135 802 167 154 4,894 4,800 1 7 12 69 649 Oct. 17 1,443 84 666 1,689 116 559 201 360 5,107 5,001 1 3 8 65 623 Dec. 31 1,576 103 1,069 1,798 126 792 229 540 5,370 5,069 1 7 4 56 591 1935—Mar. 4 1,856 86 810 2,047 147 572 190 500 5,329 5,209 1 7 4 44 595 June 29 1,935 133 447 1,983 248 369 354 149 5,924 5,979 4 6 27 567 Nov. 1 2,590 109 873 2,203 327 219 468 413 6,104 6,112 4 13 3 680 Dec. 31 2,541 111 1,133 2,338 410 224 323 524 6,479 6,193 4 12 3 591 1936— Mar. 4 2,493 108 829 2,527 363 140 260 496 6,471 6,398 4 11 586 OTHER RESERVE CITIES 1933—June 30 5 937 156 1,205 462 1, 575 356 437 124 4, 578 4,677 59 209 394 3,299 16 Oct. 25 1,154 172 1, .142 389 1,545 425 455 98 4,727 4,892 74 172 382 3,339 21 Dec. 30 1,202 198 1,169 484 1, 685 434 557 126 4,822 5,021 72 1 204 371 3,364 16 1934—Mar. 5 1,293 189 1,333 393 1,993 766 613 107 4.823 5,150 80 206 349 3,495 8 June 30 1,633 194 1,559 468 2,178 682 700 132 5,305 5,670 106 1 234 260 3, 727 Oct. 17 1,685 228 1,590 552 2,431 458 692 132 5,871 6,143 117 1 199 197 3,793 Dec. 31. 1,683 247 1,750 627 2,429 666 767 193 5,992 6, 324 117 1 206 187 3,875 1935—Mar. 4___ 1,746 231 1,873 502 2,684 546 826 151 5,901 6,376 128 211 167 3,985 June 29 2,079 250 1,856 544 2,649 319 872 164 6,522 7,013 119 1 203 118 4,139 Nov. 1 2,172 251 2,038 662 2,955 335 889 167 7,128 7,523 115 1 218 84 4,168 Dec. 31 2,105 295 1,989 887 2,943 483 915 231 7,302 7,562 134 1 266 79 4,210 1936—Mar. 4 2,274 298 2,106 703 3,188 366 949 177 7,204 7,628 135 1 251 72 4,260 COUNTRY BANKS 1933—June 30 s 452 203 702 149 228 116 555 72 2,576 3,054 7 86 285 3,833 167 Oct. 25 529 232 685 118 230 114 579 68 2,633 3,162 12 87 293 3,953 136 Dec. 30 573 225 769 172 254 111 622 85 2,793 3,328 10 83 300 3,973 123 1934—Mar. 5 685 230 951 135 281 181 702 74 3,007 3,648 11 87 301 4,163 83 June 30 769 216 1,105 174 300 174 731 85 3,150 3,792 15 87 256 4,388 35 Oct. 17 848 258 1,257 189 345 125 787 98 3,472 4,168 17 87 210 4,500 17 Dec. 31 822 275 1,296 207 342 178 804 106 3,589 4,292 16 84 210 4,554 13 1935—Mar. 4 916 246 1,427 163 364 152 845 90 3,642 4,414 17 75 188 4,623 14 June 29 920 236 1,406 192 347 90 865 104 3,761 4,538 16 76 162 4,756 9 Nov. 1 900 237 1,613 221 399 95 895 106 4,095 4,875 17 78 140 4,824 8 Dec. 31 927 305 1,676 235 415 137 901 127 4,254 5,047 16 83 136 4,879 1936—Mar. 4 1,017 268 1,757 187 433 93 965 106 4,252 5,136 17 82 95 4,938 1 Prior to Dec. 31, 1935, excludes balances with private banks to the extent that such balances were reported in "Other assets." Since Oct. 25, 1933, includes time balances with domestic banks which on that date amounted to $69,000,000 and which prior to that time were reported in "Other assets." 2 Does not include cash items in process of collection reported in balances with domestic banks. Prior to Dec. 31, 1935, includes cash items on hand but not in process of collection, amounting on that date to $16,000,000. 3 Includes "Due to Federal Reserve banks (transit account)", known as "Due to Federal Reserve banks (deferred credits)" prior to Dec. 31, 1935. 4 Demand deposits other than interbank and U. S. Government, less cash items reported as in process of collection and, prior to Dec. 31, 1935, less cash items reported on hand but not in process of collection. 5 Beginning June 1933 figures relate to licensed banks only. 6 Central reserve city banks. Back figures.—See BULLETIN for November 1935, pp. 724-726, or reprint, which may be obtained from Division of Research and Statistics. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

476 FEDERAL RESERVE BULLETIN JUNE 1936 REPORTING MEMBER BANKS IN 101 LEADING CITIES [Monthly data are averages of weekly figures. In millions of dollars] Loans to customers (except banks) Ope l n o - a m n a s rket Investments Re- Date or month i m T n lo a v o e n a e n t n d a s t s t l s - Total Y N k b o s T i r e o u e d o o r r t w - e s - k o o c t t n T u h i e r o e s s i e r - s - e R lo s e t a a a n t l s e - c O m lo u t t e a s h o r t n e o s s r 2 - L ba o t n o a k n s s p a c c m a A c n a e o n i c p e c p m a d - e r e t l - - s - r t k L o Y C N e o r i o b e s a t r w y r n k o i i s n - Total D U m i . e r S n e t . c t i t o G o n o b F s g v l u u i e g a l r l a r n y - - - s O e t c i t e h u s e ri r - b s s w F e a R e e e r n r r i e a v v t d - k h l e e - s v C a i a n u s l h t d b a w o a n B t m n i i c a c t k e e h l s s - s 3 - Cityi bought anteed TOTAL—101 CITIES 193.5—May 19,814 6,715 177 2,129 1,126 3,283 129 395 844 11,731 7,853 787 3,091 3,820 301 2,043 1936—January 20,928 6,723 176 2,071 1,142 3,334 70 364 923 12, 848 8.599 1,155 3,094 4,773 354 2,336 February 21,053 6,659 174 2,056 1,143 3,286 69 352 901 13,072 8,708 1,194 3,170 4,782 356 2,335 March 21,445 6,810 196 2,076 1,147 3,391 73 345 995 13, 222 8,737 1,247 3,238 4,363 366 2,334 April 21, 745 6,932 215 2,077 1,141 3,499 70 351 1,008 13,384 8,767 1,273 3,344 4,180 370 2,262 May 21,832 6,967 212 2,078 1,146 3,531 82 333 973 13, 477 8,877 1,286 3,314 4,577 378 2,283 Mar. 4 21,206 6,758 195 2,060 1,148 3, 355 341 1,003 13,040 8,634 1,224 3,182 4,723 360 2,401 Mar. 11 _ 21, 326 6,793 202 2,067 1,146 3,378 349 1,062 13,054 8,588 1,244 3,222 4,632 376 2,419 Mar. 18 21, 637 6,842 200 2,090 1,146 3,406 83 346 979 13, 387 8,865 1,257 3,265 4,089 362 2,287 Mar. 25. 21,611 6,850 189 2,087 1,150 3,424 77 343 934 13, 407 8,859 1,265 3,283 4,008 366 2,230 Apr. 1 21, 621 6,962 220 2,103 1,144 3,495 88 352 990 13, 229 8,643 1,265 3,321 3,866 356 2,198 Apr. 8 21,731 6,962 213 2,098 1,143 3,508 70 353 984 13,362 8,791 1,267 3,304 4,052 375 2,234 Apr. 15 21, 796 6,929 219 2,062 1,140 3,508 66 352 1,023 13, 426 8,796 1,276 3,354 4,216 365 2,316 Apr. 22 21, 783 6,910 214 2,059 1,140 3,497 62 351 1,009 13,451 8,805 1,277 3, 369 4,348 372 2,310 Apr. 29 21, 795 209 2,063 1,141 3,485 67 346 1,032 13, 452 8,802 1,281 3,369 4,416 382 2,252 May 6 21, 897 .,950 212 2,083 1,146 3,509 101 341 1,020 13,485 8,847 1,278 3,360 4,458 370 2,242 May 13 21,820 6,953 208 2,080 1,146 3,519 100 336 969 13, 462 8,872 1,289 3,301 4,537 383 2,250 May 20 21, 799 6,995 213 2,079 1,147 3,556 62 332 964 13,446 1,285 •3,293 4,623 369 2,319 May 27 21, 814 6,972 2,070 1,146 3, 542 65 322 940 13,515 8,920 1,290 3,305 4,690 2,319 NEW YORK CITY 1935—May 7,682 2,089 737 128 1,166 197 801 4,520 3,227 259 1,034 1,739 1936—January 7,937 2,036 730 128 1,119 173 895 4,799 3,346 399 1,054 2,498 February 8,061 2,025 734 130 1,100 161 873 4,969 3,430 434 1,105 2,484 79 March 8,391 2,089 750 135 1,141 158 960 5,145 3,479 519 1,147 2,138 77 A.pril 8,547 2,121 747 132 1,175 164 5,259 3,511 551 1,197 1,968 79 May 8,585 2,141 750 133 1,186 144 5,324 3,647 545 1,132 2,234 74 Mar. 4 8,296 2,097 742 135 1,158 155 5,046 3,451 479 1,116 2,390 75 Mar. 11. .. 8,457 2,069 744 135 1,128 159 1,027 5,169 3,522 511 1,136 2,225 79 Mar. 18 8,410 2,095 758 135 1,138 160 946 5,160 3,466 537 1,157 1,989 78 Mar. 25 8,400 2,096 755 136 1,141 158 5,203 3,476 549 1,178 1,949 78 Apr. 1 8, 533 2,120 758 134 1,165 168 5,237 3,485 550 1,202 1,892 86 Apr. 8 8,514 2,148 763 134 1,184 165 5,222 3,499 549 1,174 1,910 77 Apr. 15 8,556 2,118 737 131 1,183 163 5,264 3,506 559 1,199 1,972 83 Apr. 22 8,561 2,117 740 131 1,179 163 5,284 3,523 549 1,212 2,009 76 Apr. 29 8,571 2,101 739 130 1,164 159 5,289 3,545 548 1,196 2,056 74 May 6 8,635 2,134 754 133 1,177 153 978 5,302 3,581 542 1,179 2,119 81 May 13 8,550 2,133 750 133 1,179 145 922 5,282 3,618 548 1,116 2,212 71 May 20 8,561 2,159 750 133 1,204 141 918 5,314 3,655 543 '1,116 2,294 71 May 27 8,595 2,140 748 133 1,185 134 5,396 3,734 546 1,116 2,313 73 OUTSIDE NEW YORK CITY 1935—May 12,132 4,626 119 1,392 2,117 7,211 4,626 528 2,057 2,081 256 1,972 1936—January 12,991 4,687 117 1,341 1,014 2,215 191 8,049 5,253 756 2,040 2,275 301 2,260 February 12,992 4,634 113 1,322 1,013 2,186 191 8,103 5,278 760 2,065 2,298 305 2,256 March 13,054 4,721 133 1,326 1,012 2,250 187 8,077 5,258 728 2,091 2,225 315 2,257 April 13,198 4,811 148 1,330 1,009 2,324 187 8,125 5,256 722 2,147 2,212 319 2,183 May 13, 247 4,826 140 1,328 1,013 2,345 189 8,153 5,230 741 2,182 2,343 326 2,209 Mar. 4 12, 910 4,661 133 1,318 1,013 2,197 186 7,994 5,183 745 2,066 2,333 311 2,326 Mar. 11 _ 12, 869 4,724 140 1,323 1,011 2,250 190 7,885 5,066 733 2,086 2, 407 324 2,340 Mar. 18 13, 227 4,747 136 1,332 1,011 2,268 186 8,227 5,399 720 2,108 2,100 313 2,209 Mar. 25 13, 211 4, 754 125 1,332 1,014 2,283 185 8,204 5,383 716 2,105 2,059 315 2,152 Apr. 1 13, 088 4,842 157 ],345 1,010 2,330 184 7,992 5,158 715 2,119 1,974 308 2,112 Apr. 8 13, 217 4,814 146 1,335 1,009 2,324 188 8,140 5,292 718 2,130 2,142 324 2,157 Apr. 15 13, 240 4,811 152 1,325 1,009 2,325 189 8,162 5,290 717 2,155 2,244 315 2,233 Apr. 22 13, 222 4,793 147 1,319 1,009 2,318 188 8,167 5,282 728 2,157 2,339 321 2,234 Apr. 29 13,224 4,797 141 1,324 1,011 2,321 187 8,163 5,257 733 2,173 2,360 327 2,178 May 6 13, 262 4,816 142 1,329 1,013 2,332 188 8,183 5,266 736 2,181 2,339 320 2,161 May 13 13, 270 4,820 137 1,330 1,013 2,340 190 8,180 5,254 741 2,185 2,325 330 2,179 May 20 13, 238 4,836 141 1,329 1,014 2,352 191 8,132 5,213 742 2,177 2,329 318 2,248 May 27 13, 219 4,832 140 1,322 1,013 2,357 8,119 5,186 744 2,189 2,377 334 2,246 r Revised. 1 Loans (secured by stocks and bonds) to brokers and dealers in securities. 2 Includes reporting banks' own acceptances. 8 Figures reported prior to 1936 excluded a certain amount of time balances and balances with private banks; the amount excluded on Dec. 31, 1935, was approximately $38,000,000 at all weekly reporting member banks. For other figures and note, see next page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

477 JUNE 1936 FEDERAL RESERVE BULLETIN REPORTING MEMBER BANKS IN 101 LEADING CITIES—Continued [Monthly data are averages of weekly figures. In millions of dollars] Cash Demand deposits Time deposits items Total report- assets De- Date or month i c n e e t o i d s o p l s l n r e a o o c l s f c - - a O s t s h e e ts r l T i i a t o i b e t i a s l l - D b o a t I n m ic n k e t s e s- rb F a b o n a r k n ei k g s n G U S m o n t v a e i e t t n e e r t d n s - c C h f e e i e t e c r c . t d k i- s, Other i u d m ts s e — t a p e n o d a d s d 2 - - b m D a I e n o n s - k t ti e s c rb b a e F a n i o n g k r k n - s Other r B i o n o w g r s - - l O i i a t t i b h e i e s l r - t c C a o l a u p a n i c t - - TOTAL—101 CITIES 1935—May 1,270 28, 714 4,628 213 891 553 13, 090 12, 373 130 4,970 719 3,506 1936—January 1,335 31, 056 5,485 427 654 537 14, 622 13,824 135 4,892 796 3,503 February 1,277 31,140 5,512 397 545 493 14, 848 14,064 135 4,893 807 3,505 March 1,413 31, 255 5,516 376 646 580 14, 714 13, 881 133 4,923 838 3,512 April 1,526 31, 437 5,351 356 758 576 14, 932 13, 982 133 4,971 822 3,527 May 1,269 31,715 5,346 375 752 420 15, 220 14,371 131 5,051 874 3,541 Mar. 4 1,437 31, 469 5,739 387 511 620 14, 783 13,966 134 4,911 3,512 Mar. 11 1,546 31, 646 5,699 380 510 664 14, 923 14, 041 133 4,931 877 3,511 Mar. 18 1,369 31, 062 5,375 373 785 527 14,613 13, 771 134 4,922 795 3,513 Mar. 25 1,300 30,844 5,252 366 777 508 14,539 13, 747 133 4,921 815 3,513 Apr. 1 1,744 31,138 5,297 370 774 699 14, 623 13,578 133 4,909 789 3,518 Apr. 8 1,263 30, 990 5,292 359 760 486 14, 667 13, 890 135 4,956 803 3,523 Apr. 15 1,850 31, 887 5,487 351 755 692 15,154 13,996 133 4,958 821 3,527 Apr. 22 1,346 31, 504 5,379 350 751 474 15,059 14,187 133 4,985 833 3,533 Apr. 29 1,428 31, 666 5,299 348 752 528 15,158 14, 258 132 5,047 865 3,532 May 6 1,283 31, 633 5,361 374 754 479 15, 064 14, 260 130 5,076 850 3,540 May 13 1,341 31,710 5,360 377 752 392 15, 221 14, 272 132 5,056 871 3,544 May 20 1,241 31,714 5,344 377 754 415 15,216 14, 390 131 5,043 892 3,538 May 27 1,210 31, 801 5,317 374 747 393 15, 379 14, 562 132 5, 028 884 3,543 NEW YORK CITY 1935—May 708 580 10, 825 1,913 189 435 383 5,537 5,211 618 271 1,469 1936—January 670 472 11,706 2,359 398 180 348 6,101 5,779 540 314 1,462 February 627 472 11, 774 2,336 368 143 317 6,295 5,985 537 312 1,463 March 737 465 11,859 2,343 347 164 409 6,229 5,901 542 348 1,463 April... 789 478 11,912 2,292 325 197 390 6,366 5, 968 547 321 1,466 May 565 494 12, 004 2,303 345 196 261 6,478 6,175 581 1,470 Mar. 4 753 471 12,034 2,466 357 131 438 6,265 5,950 537 370 1,467 Mar. 11 848 468 12,129 2,451 349 131 486 6,315 5,953 543 377 1,461 Mar. 18 688 457 11,671 2,270 343 198 361 6,158 5,831 541 318 1,461 Mar. 25 660 463 11,601 2,187 337 197 352 6,177 546 326 1,462 Apr. 1 978 485 12,022 2,233 339 198 6,416 5,927 546 314 1,464 Apr. 8 567 467 11,586 2,240 329 198 6,225 5,944 533 301 1,465 Apr. 15 1,036 472 12,169 2,376 319 198 520 6,437 5,921 532 318 1,466 Apr. 22 623 471 11, 791 2,317 318 196 301 6,316 5,994 545 326 1,468 Apr. 29 741 495 11,992 2,293 318 196 356 6,437 6,052 576 345 1,467 May 6 608 505 11,998 2,291 343 196 313 6,421 6,126 602 356 1,472 May 13 573 502 11,961 2,318 347 196 236 6,440 6,103 583 364 1,473 May 20 550 482 12,009 2,323 347 198 256 6,456 6,162 578 379 1,468 May 27 528 485 12, 049 2,278 344 194 241 6,596 6,309 561 363 1,468 OUTSIDE NEW YORK CITY 1935—May 562 17, 889 2,715 456 170 7,553 7,162 130 4,352 448 2,037 1936—January 665 858 19, 350 3,126 474 189 8,521 8,045 135 4,352 482 2,041 February 650 19,366 3,176 402 176 8,553 8,079 135 4,356 495 2,042 March 676 19, 396 3,173 482 171 8,485 7,980 133 4,381 490 2,049 April 737 876 19, 525 3,059 561 186 8,566 8,014 133 4,424 501 2,061 May 704 882 19,711 3,043 556 159 8,742 8,196 131 4,470 508 2,071 Mar. 4 684 871 19, 435 3,273 380 182 8,518 8,016 134 4,374 496 2,045 Mar. 11 698 879 19, 517 3,248 379 178 8,088 133 4,388 500 2,050 Mar. 18 681 861 19,391 3,105 587 166 8,455 7,940 134 4,381 477 2,052 Mar. 25 640 866 19, 243 3,065 580 156 8,362 7,878 133 4,375 489 2,051 Apr. 1 766 868 19,116 3,064 576 210 8,207 7,651 133 4,363 475 2,054 Apr. 8 696 868 19, 404 3,052 562 200 8,442 7,946 135 4,423 502 2,058 Apr. 15 814 872 19, 718 3,111 557 172 8,717 8,075 133 4,426 503 2,061 Apr. 22 723 874 19, 713 3,062 555 173 8,743 8,193 133 4,440 507 2,065 Apr. 29 687 898 19, 674 3,006 556 172 8,721 8,206 132 4,471 520 2,065 May 6 675 878 19, 635 3,070 558 166 8,643 8,134 130 4,474 494 2,068 May 13 768 877 19, 749 3,042 556 156 8,781 8,169 132 4,473 507 2,071 May 20 881 19, 705 3,021 556 159 8,760 8,228 131 4,465 513 2,070 May 27 19, 752 3,039 553 152 8,783 8,253 132 4,467 521 2,075 1 Does not include cash items in process of collection reported in balances with domestic banks. Prior to 1936, includes a relatively small amount of cash items on hand but not in process of collection. 2 Demand deposits other than interbank and U. S. Government, less cash items reported as in process of collection and prior to 1936, less cash items reported as on hand but not in process of collection. NOTE.—For back figures and description of figures see BULLETIN for November 1935, pp. 711-738, or reprint, which may be obtained from the Division of Research and Statistics. See also p. 876 of BULLETIN for December 1935 and Annual Report for 1932 (tables 78-82). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

478 FEDERAL RESERVE BULLETIN JUNE 1936 REPORTING MEMBER BANKS IN 101 LEADING CITIES ASSETS AND LIABILITIES BY DISTRICTS AND FOR NEW YORK CITY AND CHICAGO [In millions of dollars] Federal Reserve District City Total Boston Y N o ew rk 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 - At t l a an- Ch g i o ca- L S ou t. is n M o e l a i i n s p - - K C s a i a t n s y - Dallas F c S i r s a a c n n o - Y N o e r w k Ch g i o ca- Loans and investments, total: May 6 21, 897 1,218 9,512 1,177 1,802 597 537 2,838 632 374 627 445 2,138 8,635 1,874 May 13 21, 820 1,219 9,418 1,177 1,803 599 539 2,842 635 373 631 446 2,138 8,550 1,867 May 20 21, 799 1, 221 9,426 1,173 1,801 579 539 2,829 376 641 442 2,134 8,561 1,859 May 27 L 21,814 1,239 9,462 1,168 1,801 582 535 2,807 378 645 2,130 8,595 1,852 Loans to brokers and dealers in New York: May 6 1, 020 991 978 May 13 969 932 922 May 20 964 928 918 May 27 940 904 Loans to brokers and dealers outside New York: May 6 212 36 May 13 208 36 May 20 213 45 May 27 214 43 Loans on securities to others (except banks): May 6 2,083 154 900 146 213 208 170 754 148 May 13 2,080 153 895 146 213 209 170 750 148 May 20 2,079 153 895 146 213 209 169 750 148 May 27 2,070 153 893 145 214 201 170 748 140 Acceptances and commercial paper bought: May 6 341 162 6 24 2 22 153 17 May 13 336 155 6 24 2 22 146 16 May 20 332 150 6 24 2 22 141 15 May 27 322 143 6 23 2 22 134 14 Loans on real estate: May 6 1,146 248 185 22 16 22 367 133 15 May 13 1,146 248 185 22 16 22 367 133 15 May 20 1,147 248 185 23 16 21 367 133 15 May 27 1,146 248 185 22 16 22 367 133 15 Loans to banks: May 6 101 4 1 4 1 1 May 13 100 67 4 1 10 4 1 1 67 May 20 62 29 4 1 10 4 1 1 29 May 27 65 31 4 1 10 4 1 1 31 Other loans: May 6 3,509 1,319 178 207 106 136 412 107 124 129 125 360 1,177 270 May 13 3, 519 1,322 178 210 106 136 415 107 121 129 126 362 1, 179 270 May 20 3, 556 306 1,346 182 209 107 136 418 107 122 131 126 366 1,204 272 May 27 3,542 312 1,327 181 210 107 136 422 108 121 131 126 361 1, 185 279 U. S. Government direct obligations: May 6 8,847 402 3,815 321 845 200 1,506 242 144 237 168 687 3,581 1,003 May 13 8,872 402 3, 850 320 844 281 201 1,498 243 145 237 168 683 3, 618 995 May 20 r8,868 408 •3, 885 315 844 261 199 1, 477 245 145 245 166 678 •3, 655 979 May 27 8,920 418 3,964 311 842 262 1,455 232 148 246 165 677 3,734 969 Obligations fully guaranteed by U. S. Government: May 6 1,278 18 570 103 65 158 51 43 144 542 92 May 13 1,289 18 576 102 65 158 51 46 146 548 93 May 20 1,285 18 571 100 65 156 53 46 149 543 92 May 27 1, 290 18 576 100 67 158 54 45 150 546 94 Other securities: May 6 3, 360 171 1, 367 310 262 401 107 125 368 1,179 May 13 3, 301 171 1,300 314 262 402 108 126 369 1, 116 288 May 20 '3, 293 169 1,300 314 261 401 107 126 366 1,116 287 May 27 3, 305 169 1,300 315 261 406 108 131 365 1, 116 292 Reserve with Federal Reserve bank: May 6 4,458 228 2,246 194 269 130 763 103 115 226 2,119 622 May 13 4,537 233 2,290 185 272 127 776 101 118 240 2,212 639 May 20 4,623 226 2,386 189 274 117 794 90 110 246 2,294 664 May 27 4,690 215 2,398 189 279 112 849 102 111 245 2,313 691 Cash in vault: May 6 370 122 64 14 31 16 58 11 11 19 50 35 May 13 383 121 67 15 33 18 60 12 12 10 19 53 36 May 20 369 121 64 14 31 17 58 11 11 18 51 35 May 27 . . 389 122 70 15 33 18 62 12 12 19 55 37 • Revised. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

479 JUNE 1936 FEDERAL RESERVE BULLETIN REPORTING MEMBER BANKS IN 101 LEADING CITIES—Continued ASSETS AND LIABILITIES BY DISTRICTS AND FOR NEW YORK CITY AND CHICAGO—Continued [In millions of dollars] Federal Reserve District City Total Boston Y N o e r w k P p h d h i el l i a - a - C l l a e n v d e- m Ri o c n h d - At t l a an- Ch g i o ca- Lo S u t i . s n M o e i l a i n p - s - K C s a i a t n s - y Dallas F c S r i a a s n n c - o Y N o e r w k Ch g i o ca- Balances with domestic banks: May 6 2,242 134 190 146 215 148 143 392 118 264 171 234 81 May 13 2, 250 133 167 151 222 151 144 394 116 273 173 242 71 187 May 20 2,319 133 173 152 224 177 144 422 116 267 177 250 71 205 May 27 2,319 124 175 152 229 178 143 429 113 261 177 252 73 207 Other assets: May 6 1,383 77 575 111 39 106 24 18 25 27 253 505 73 May 13 1,379 76 572 111 39 107 24 18 25 27 255 502 73 May 20 . 1,363 77 552 112 39 107 24 18 25 27 257 482 73 May 27 1,379 77 555 112 42 112 24 19 25 27 259 485 76 Demand deposits—adjusted: May 6 14, 260 968 744 981 379 293 2,042 381 236 433 329 789 6,126 1,379 May 13 14, 272 977 6,592 744 992 382 297 2,070 384 246 455 338 795 6,103 1,398 May 20 14, 390 975 6,668 749 992 381 296 2,109 376 247 447 339 811 6,162 1,438 May 27 14, 562 6,811 749 997 382 300 2,143 356 250 448 336 6,309 1,459 Time deposits: May 6 5,076 298 995 274 715 194 171 815 174 119 144 119 1,058 602 462 May 13 5,056 299 975 275 715 194 171 816 174 119 144 118 1,056 583 462 May 20, 5,043 297 970 274 717 194 171 817 174 119 145 115 1,050 578 462 May 27 5,028 297 953 272 718 194 171 818 175 119 144 119 1,048 561 462 U. S. Government deposits: May 6... 754 16 229 57 58 41 43 138 3 19 27 114 196 101 May 13 752 16 229 57 58 40 44 137 3 18 28 113 196 101 May 20 754 16 231 57 58 40 43 138 3 18 27 114 198 101 May 27 747 16 226 57 58 40 43 136 3 18 27 114 194 101 Interbank deposits, domestic: May 6 5,491 231 2,357 296 324 201 191 774 230 111 355 171 250 2,291 581 May 13 5,492 226 2,384 292 326 200 189 764 227 107 351 169 257 2,318 571 May 20 5,475 225 2,388 289 324 198 187 755 227 106 353 171 252 2,323 567 May 27 5,449 218 2,344 287 329 196 182 767 243 108 352 169 254 2,278 571 Interbank deposits, foreign: May 6 379 348 3 1 1 5 1 11 347 4 May 13 382 352 3 1 1 5 1 10 351 4 May 20 381 352 3 1 1 5 1 10 351 4 May 27 378 350 3 1 1 5 1 10 348 4 Borrowings: May 6 May 13 May 20 May 27 Other liabilities: May 6 850 26 22 15 326 356 32 May 13 871 25 377 22 15 340 364 34 May 20 892 27 392 22 15 345 379 32 May 27 884 26 377 22 16 347 363 34 Capital account: May 6 3,540 231 1,604 224 334 346 322 1,472 231 May 13 3,544 231 1,605 224 334 347 323 1,473 232 May 20 3,538 231 1,600 223 335 348 323 1,468 232 May 27 3,543 231 1,599 223 335 349 324 1,468 232 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

480 FEDERAL RESERVE BULLETIN JUNE 1936 BANKS SUSPENDED AND NONLICENSED BANKS PLACED IN LIQUIDATION OR RECEIVERSHIP DURING 1935 AND JANUARY-MAY, 1936 [Preliminary figures] Licensed banks suspended i Nonlicensed ba r n e k c s e i p v l e a r c s e h d ip i 2 n liquidation or Number of banks De sa p n o d s s it s o f 3 d (i o n l la th rs o ) u- Number of banks D s e a p n o d s s it s o f 3 d (i o n l l t a h r o s) u- January- January- January- January- Year 1935 May Year 1935 May Year 1935 May Year 1935 May 1936 1936 1936 1936 National banks 4 5,313 4 6,499 State bank members *6 * 8,613 ^oTiTneniber insured bants 22 23 3,847 3,251 Other nonmember banks 8 1 998 428 48 9 14, 306 16,630 Total __ 34 24 10,158 3,679 58 9 29,418 16,630 1 Includes banks placed on a restricted basis. 2 Includes nonlicensed banks absorbed or succeeded by other banks. 3 Deposits of licensed member banks suspended are as of dates of suspension; deposits of nonlicensed national banks placed in liquidation or receivership are as of dates of conservatorship; deposits of nonlicensed State bank members placed in liquidation or receivership are as of the nearest call dates prior to liquidation or receivership; and deposits of nonmember banks are based on the latest data available at the time of the reported closing of the banks. * Includes 5 banks with deposits of $7,395,000 in 1935, which did not receive licenses following the banking holiday and withdrew from the Federal Reserve System before being placed in liquidation. Back figures.—See Annual Report for 1934 (tables 79-84). BANK DEBITS POSTAL SAVINGS SYSTEM [Debits to individual accounts. Amounts in millions of dollars] [In millions of dollars] 1936 1935 Assets Number of centers April March April U. S. Government securities Depos- New York City _ 1 17, 285 19,629 15, 905 End of month itors' Cash Cash, Outside New York City 140 17, 497 17,866 r 15, 645 bal- in de- Guar- reances Total Di- Federal Reserve districts: tory rect teed funds, Boston 11 1,928 2,064 1,684 banks Total obli- obli- etc.1 New York 7 17, 903 20, 200 16, 568 ga- ga- Philadelphia 10 1,456 1,549 1,480 tions tions Cleveland _ 13 1,879 1,664 1,544 Richmond 7 604 618 565 Atlanta 15 717 740 697 1935—January ,201 1,232 509 614 467 147 109 Chicago __ _ _ 21 4,673 5,091 4,164 February L, 205 1,237 491 633 467 166 113 St. Louis 5 822 845 757 March.. , 203 1,232 478 691 508 183 63 ~M. inneapolis 9 600 542 530 April „ ,200 1,231 452 685 539 146 94 Kansas Citv 15 987 974 887 May ,205 1,237 412 709 562 147 116 Dallas 10 568 604 495 June.. . _. __ , 205 1,236 385 777 630 147 74 San Francisco 18 2 645 2 604 r2 177 July . ,189 1,221 364 111 630 147 80 August L, 192 1,224 348 780 633 147 96 Total 141 34, 783 37, 496 r31, 549 September ,192 1,224 319 805 658 147 100 October ,196 1,230 306 824 677 147 100 November , 199 1,234 294 853 706 147 87 r Revised. December ,201 1,237 287 853 706 147 97 Back figures.—See Annual Report for 1934 (table 78). 1936—January ,208 1,241 248 876 709 167 117 February ,214 1,248 225 876 710 166 147 March. p April pi, 215 p Preliminary, i Includes working cash with postmasters, 5-percent reserve fund and miscellaneous working funds with the Treasurer of the United States, accrued interest on bond investments, and accounts due from late postmasters. Back figures.See BULLETIN for August 1935, p. 502. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1936 FEDERAL RESERVE BULLETIN 481 ACCEPTANCES, COMMERCIAL PAPER, AND BROKERS' BORROWINGS BANKERS' ACCEPTANCES, BY HOLDERS BANKERS' ACCEPTANCES, BY CLASSES (DOLLAR ACCEPTANCES) (DOLLAR ACCEPTANCES) [In millions of dollars] [In millions of dollars] Held by Fed- Held by accepting Based Based eral Reserve banks on goods on banks stored in goods Based United stored Total on Based States in out- For Held im- on ex- (ware- Dollar foreign End of month st i a n n g d- o F a w o c- n r o c e f o a i u g c fo - n n r t - Total O bi w ll n s bo B u il g ls ht ot b h y ers End of month Total p U i o n . r t S o ts . p U fr o o . r S m ts . s c h h re i o o p d u r p i s t e e s d ) ch e a x n - ge s t h r c i i o b e p u e s p - n o e - d r count corre- between tween spond- domestic foreign ents points points 1934—January 771 105 4 567 255 312 95 1934—January- 771 225 277 175 February... 750 56 5 581 266 315 108 February.. 750 203 261 184 March 685 23 5 576 252 324 81 March 685 103 186 226 168 April 613 3 4 536 236 299 70 April 613 103 164 186 158 May 569 0) 3 507 226 281 59 May 569 100 150 164 152 June 534 0) 2 480 220 260 53 June 534 97 145 141 148 July 516 0) 1 472 222 250 42 July 516 94 135 138 144 August 520 0) 1 483 222 261 37 August 520 140 147 141 September.. 539 0) 1 503 223 280 35 September. 539 138 166 137 October 562 0) 516 245 271 45 October.._. 562 147 184 133 November. _ 561 0) 517 252 265 44 November. 561 148 195 127 December. _ 543 0) 0) 497 243 254 46 December. 543 140 193 119 1935—January 516 0) 0) 485 238 247 30 1935—January... 516 133 179 114 February.. _ 493 0) 452 217 235 41 February.. 493 92 123 166 109 March 466 0) 423 197 226 43 March 466 101 122 134 106 April 413 0) 391 178 214 22 April 413 103 114 96 May 375 356 162 193 19 May 375 107 100 76 June 343 317 154 163 26 June 343 102 94 57 July 321 296 148 148 24 July 321 99 86 47 August... -. 322 292 145 147 30 August 322 102 81 52 83 September. _ 328 301 148 154 27 September 328 102 77 66 79 October 363 339 178 161 24 October.... 363 106 75 98 82 November.. 387 358 182 175 29 November. 387 105 84 111 84 December. _ 397 368 185 29 December. 397 107 94 110 84 1936—January 384 353 181 172 31 1936—January... 384 108 94 84 February.. _ 377 340 172 168 37 February.. 377 114 94 86 March 359 321 150 171 38 March 359 113 91 87 April 344 310 143 167 34 April 344 111 57 89 i Less than $500,000. Source: American Acceptance Council. Source. For acceptances outstanding (and held by accepting banks), Back figures—See Annual Report for 1933 (table 97). American Acceptance Council. Back figures.—See Annual Report for 1933 (table 100). BROKERS' BORROWINGS COMMERCIAL PAPER OUTSTANDING l [Net borrowings on demand and on time in New York City reported by members of the New York Stock Exchange. In millions of dollars] [As reported by dealers. In millions of dollars] From banks From private End of month 1932 1933 1934 1935 1936 Total and trust com- banks, brokers, End of month panies fo a r g e e ig n n c ie b s a , n e k t i c n . g January 108 85 108 171 178 February. _. 103 84 117 177 176 March 106 72 133 182 180 1935 1936 1935 1936 1935 1936 April 108 64 139 173 May 111 60 142 173 January 825 925 758 891 67 34 June 103 73 151 159 February.. 816 924 750 888 66 36 March 773 997 706 956 67 41 July 100 97 168 164 August 108 107 188 177 April ._ 805 1,064 762 1,028 43 35 September. 110 123 192 183 May 793 970 759 934 34 36 June 808 776 32 N O o ct v o e b m er ber- 1 11 1 0 3 1 1 3 3 0 3 1 1 8 7 8 8 1 1 8 7 0 8 July 769 741 28 December.. 81 109 166 • 172 August . . 772 750 22 September... _ _ 781 759 22 i Includes some finance company paper sold in the open market. October 792 772 20 November 846 821 25 Back figures.—See Annual Report for 1934 (table 76). December 938 907 31 Back figures.—See Annual Report for 1934 (table 75). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

482 FEDERAL RESERVE BULLETIN JUNE 1936 FEDERAL RESERVE BANK DISCOUNT RATES Advances secured by Rediscounts and advances un- Advances under sec. Discounts and ad- direct obligations of der sees. 13 and 13a of the Fed- 10 (b) of the Federal vances under par. 3 the United States eral Reserve Act Reserve Act of sec. 13 of the Federal (last paragraph of Reserve Act sec. 13 of the Federal Reserve Act) Federal Reserve Bank J R un a e te 1 be I g n in e n f i f n e g c — t v P r i a o r t e u e - s J R un a e te 1 be I g n in e n f i f n e g c — t J R un a e te 1 be I g n i nn ef i f n e g c — t J R un a e te 1 >e In g in e n f i f n e g c — t B N o e s w to Y n ork F F e e b b . . 8 2 , . 1 19 9 3 3 4 4 2 2 l/2 2 S O e c p t t . .2 1 0 0 , , 1 1 9 9 3 3 5 5 A Au u g g . . 1 1 1 0 , , 1 1 9 9 3 3 2 2 F O e c b t. . 2 8 0 , ,1 1 9 9 3 3 3 4 P C h le i v la e d la e n lp d hia. . J M an a . y 1 1 7 1 , , 1 1 9 9 3 3 5 5 2 2V2 N Oc o t v . . 1 2 9 , , 1 1 9 9 3 3 5 5 5 A Ju u ly g. 2 1 4 2 , , 1 1 9 9 3 3 4 2 M Oc a t y . 2 1 0 1 . , 1 1 9 9 3 3 3 5 A R C St h i t . c l i a h c L n a m o g t u a o o i n s d J J J M a a a n n n a . . . y 1 1 3 9 9 4 , . , , 1 1 1 1 9 9 9 9 3 3 3 3 5 5 5 5 2 2 2 ly V V V 2 2 2 S S S O e c e e p t p p t t t . . . . 2 2 1 0 3 3 4 , , , , 1 1 1 1 9 9 9 9 3 3 3 3 5 5 5 5 6 5 5 H J A J M u u u l l a y y g r . .2 1 1 1 0 6 3 0 , , , , 1 1 1 1 9 9 9 9 3 3 3 3 4 4 2 4 M F O F e e c a b b t r . . . . 2 1 1 1 1 7 9 6 . , . , 1 1 1 1 9 9 9 9 3 3 3 3 5 3 4 4 M D K Sa a a i n n n ll s n a F a e s r s a a . . p n C o c i i l t s i y s c . _ . o _ _ . M M M Fe a a a b y y y . 1 1 1 8 4 0 6 , , , ,1 1 1 1 9 9 9 9 3 3 3 3 4 5 5 5 2 2 V V 2 2 2 2 2 V Y V 2 2 2 2 A O O S c c e u t t p g t . . . .2 2 2 0 8 9 6 , , , , 1 1 1 1 9 9 9 9 3 3 3 3 5 5 5 5 J A S S u e e u l p p y g t t . . . 1 1 8 2 0 0 , , , , 1 1 1 1 9 9 9 9 3 3 3 3 2 2 4 2 A M M O p c a a t r y r . . . 1 1 1 1 5 0 2 9 . , . , 1 1 1 1 9 9 9 9 3 3 3 3 3 5 3 4 RATES ON INDUSTRIAL ADVANCES BUYING RATES ON ACCEPTANCES [Approved by the Board of Governors of the Federal Reserve System, [Buying rates at the Federal Reserve Bank of New York] under Sec. 13(b) of the Federal Reserve Act as amended June 19, 1934. Percent per annum except as otherwise specified. In effect June 1, 1936] Rate in Maturity effect on In effect be- Previous Advances to financ- June 1 ginning— rate ing institutions— Advances direct to Commit- 1-15 days.... Oct. 20, 1933 Federal Reserve Bank industrial On por- ments 16-30 days... ....do m o e r r c c ia o l m o - r- t w io h n i c fo h r m O a n in r in e- g a t d o v m an a c k e e s 3 4 1 6 - - 4 6 5 0 d d a a y y s s . .. . . . . . . . . _ . . d d o oganizations institu- portion 61-90 days... ....do tion is 91-120 days.. ....do _ obligated 121-180 days ....do N Bo e s w to Y n ork___. 3^ 4 - - 6 6 3 3 4 3K -5 2 1-2 NOTE.—Rates on prime bankers' acceptances. Higher rates may be Philadelphia- 4-6 3 (2) charged for other classes of bills. Cleveland 4^-6 zlA 4 Back figures.—See Annual Report for 1934 (table 51). Richmond 6 4-6 4-6 1-2 Atlanta 6 5 5 Chicago 5-6 13 5-6 1-2 St. Louis 43^ 4H Minneapolis. _ 6 4^-5 4H-5 Kansas City_. 4-6 4 4 Dallas 5-6 4 5-6 San Francisco 5-6 3-4 4-5 1 Authorized rate 1 percent above prevailing discount rate. 2 Same as to borrower but not less than 4 percent. * Flat charge. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1936 FEDERAL RESERVE BULLETIN 483 MONEY RATES AND BOND YIELDS OPEN-MARKET RATES IN NEW YORK CITY RATES CHARGED CUSTOMERS BY BANKS IN [Percent per annum] PRINCIPAL CITIES [Weighted averages of prevailing rates] Prevailing rate on- Average rate on- Aver- 1928 1929 1930 1931 1932 1933 1934 1935 1936 age Prime Prime Stock- Stock ex- u. s. yield on Month or week com- bank- ex- change call Treas- U. S. New York City: mercial ers' change loans ury 273- Treas- January 4.56 5.74 5.64 4.24 4.71 4.12 3.58 2.83 2.64 paper, accept- time day bills ury February 4.44 5.73 5.35 4.31 4.71 4.11 3.43 2.90 2.56 4 to 6 ances, loans, offered 3-5 year March 4.59 5.81 5.22 4.20 4.7: 4.88 3.31 2.64 2.61 months 90 90 XT-.™ Re- within notes i April 4.72 5.85 4.91 4.17 4.69 4. 3.39 2.61 2.54 days days IN 6W newal period May 4.97 5.88 4.74 4.11 4.55 4.24 3.42 2. 2.51 June 5.09 5.93 4. 4.13 4.61 4. 10 3.30 2.66 July 5.38 5.88 4.48 4.05 .42 3.93 3.30 2.61 1935 August 5.56 6.05 4.41 3.97 L45 3.97 3.33 2.67 September 5.63 6.06 4.29 3.93 30 3.79 3.26 2.72 May M K .25 .25 .15 1.12 October 5.63 6.08 4.26 4.27 3.76 3.28 2.72 June %A y% .25 .25 .13 1. 14 November 5.56 5. 4.17 4.67 3.52 3.22 2.77 July %A Vs K .25 .25 .07 1. 16 December 5.63 5.74 3.48 3.18 2.61 A Se u p g t u e s m t ber y V 8 s K M . . 2 2 5 5 . . 2 2 5 5 . . 1 2 0 2 1 1 . .2 4 2 3 Year 5. 15 5.88 4.02 3.33 2.70 October 3/ K .29 .29 .20 1.37 8 other northern and November *A y 8 l .75 .75 . 14 1.29 eastern cities: December t Vs l .75 . 75 .09 1.26 January 4.73 5.87 5.88 4.61 5.07 4. 4.65 4.08 3.62 February 4.76 5.86 5.66 4.63 5.13 4.84 4.49 4.02 3.63 1936 March 4.81 5.91 5.47 4.62 5.14 5.39 4.52 4.05 3.60 April 4.91 6.00 5.22 4.57 5.10 5. 4.52 3.99 3.47 January h Vs l .75 .75 .10 1.21 May 5.04 6.09 5.13 4.55 5.14 4.99 4.39 3.88 3.45 February h Vs l .75 .75 .08 1.15 June 5.36 6.02 5.06 4.49 5.13 4.97 4.30 3.78 March ZA Vs l .75 .75 .11 1.09 July 5.57 6.08 4.81 4.48 5.05 4.82 4.15 3.87 April -. _ - K1 l .75 .75 .10 1.10 August 5.59 6.11 4.79 4.47 5.12 4. 4.12 3.79 May 3A Vs .93 .93 .18 1.09 September 5.80 6.24 4.74 4.48 5.03 4.65 4.11 3.75 October 5.80 6.25 4.75 4.62 4.96 4.51 4. 13 3.75 Week ending: November 5.82 6. 12 4. 4.87 4.88 4.54 4.08 3.63 Mar. 7 3. Vs l .75 .75 .10 1.05 December 5.91 5.94 4.68 4.91 4. 4.59 3. 3.67 Mar. 14.... i Vs l .75 .75 .10 1. 11 Mar. 21— 3, H l .75 .75 .12 1.13 Year 5.34 6.04 5.07 4.61 5.05 4.83 4.29 3.86 Mar. 28—. /%A H i .75 .75 .13 1.12 27 southern and Apr. 4 *A Vs l .75 .75 .11 1.12 western cities: Apr. 11__._ %A H l .75 .75 .10 1.07 January 5.53 6. 12 5.50 5.61 5. 5.40 4.95 4.47 Apr. 18 *A Vs l .75 .75 .09 1.09 February 5.53 6.05 5.43 5.61 5.56 5.39 4.84 4.51 Apr. 25 ZA l .75 .75 .09 1.09 March 5.54 5. 5.40 5.64 5. 5.40 4.85 4.44 May 2 \ v% l .75 .75 .13 1.10 April 5.54 5.86 5.36 5.63 5.68 5.34 4.80 4.40 May 9 XA l .75 .75 .19 1.11 May 5.56 5.75 5.26 5.64 5. 5.28 4.79 May 16___- % IK 1.00 1.00 .18 1.09 June 5.67 5.69 5.34 5.62 5.62 5.19 4.76 May 23—_ % % IK 1.00 1.00 .20 1.08 July 5.77 5.63 5.30 5.63 5.54 5.07 4.58 Mav3CL___ % lA IK 1.00 1.00 .22 1.09 August 5. 5.58 5.28 5.68 5.53 5.05 4.63 September 5.82 5.55 5.32 5.63 5.55 5.04 4.51 i For description of average and back figures, see May Bulletin, p. 317 October 5.87 5.54 5.38 5.56 5.50 5.05 4.55 November 5.90 5.50 5.53 5.55 5.42 4. 4.51 Back figures.—See Annual Report for 1934 (tables 54 and 55), except December 5.91 5.43 5.56 5.60 5.43 4. 4.55 for average yield on U. S. Treasury 3-5 year notes. Year 5.70 6.14 5.72 5.39 5.62 5.56 5.17 i.t Back figures—See Annual Report for 1934 (table 57). BOND YIELDS1 Corporatei Year, month, or date T U re . a S s . - M i u p n a i l c- By ratings By groups (high grade)3 Total Indus- Rail- Public Aaa Aa A Baa trial road utility Number of issues 7-11 15 120 30 30 30 30 40 40 . 40 1933 average - - - 3.31 4.71 5.88 4.49 5.23 6.09 7.76 5.32 6.06 6.25 1934 averase 3. 10 3.95 4.96 4.00 4.44 5.08 6.32 4.52 4.96 5 40 1935 average - - - - 2.70 3.16 4.58 3.74 4.13 4.62 5.81 4.25 4.95 4.53 1935—May - - - - - - -- 2.61 3.27 4.64 3.74 4. 18 4.66 5.99 4.29 5.11 4.52 June 2.61 3.25 4.59 3.72 4.18 4.62 5.86 4.31 4.99 4 48 July - - 2.59 2.95 4.54 3.70 4. 15 4.54 5.77 4.26 4.97 4.40 August 2.66 2.87 4.54 3.77 4. 15 4.57 5.69 4.26 4.95 4 42 September 2.78 3.08 4.52 3.80 4. 11 4.56 5.62 4.24 4.91 4.41 October 2.77 3. 16 4.52 3.79 4.10 4.57 5.63 4.20 4.97 4.39 November 2.73 3.02 4.45 3.75 4.03 4.53 5.50 4.13 4.90 4 33 December - - - - 2.73 2.97 4.38 3.72 3.97 4.44 5.37 4.09 4.73 4.31 1936—January _ - - - -- 2.68 2.93 4.23 3.66 3.85 4.31 5. 10 3.93 4.50 4.26 February 2.62 2.86 4. 15 3.62 3.80 4.24 4.93 3.88 4.32 4.25 March - - - - - 2.54 2.78 4.15 3.61 3.77 4.23 4.99 3.84 4.35 4.27 April 2.51 2.76 4.17 3.60 3.79 4.26 5.04 3.84 4.41 4.27 May 2.50 2.76 4.16 3.58 3.74 4.25 5.08 3.80 4.42 4.26 May 6 - - - 2.51 2.77 4.16 3.57 3.75 4.25 5.08 3.81 4.43 4.26 May 13 2. 50 2.76 4.17 3.59 3.75 4.25 5.07 3.82 4.43 4 25 May 20 2.47 2.77 4.15 3.56 3.73 4.24 5.07 3.79 4.41 4.25 May 27 ... . 2.48 2.75 4.14 3.56 3.72 4.23 5.04 3.77 4.39 4.25 i Monthly data are average «»of daily or weekly figures. 2 Average of yields of all outstanding bonds due or callable after 8 years. 3 Standard Statistics Co. « Moody's Investors' Service. Since the early part of 1934 less than 40 industrial bonds have been included owing to the fact that the number of industrial bonds with Aaa ratings has been reduced from 10 to 4 and with Aa ratings from 10 to 3. Back figures—See Annual Report for 1934 (table 94). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

484 FEDERAL RESERVE BULLETIN JUNE 1936 BOND PRICES 1 STOCK PRICES i Corporate3 Preferred Common stocks (index, 1926=100)3 U. S. Munic- stocks Year, month, or date T u re ry as 2 - g ( r h i a p i d g a e l h ) - 3 Total In tr d ia u l s- R ro a a i d l- Utility Year, month, or date tr g ( ia i r n l a d d h u e i ) s g - h " - Total In tr d ia u l s- R ro a a i d l- Utility Number of issues. 7-11 60 20 20 20 Number of issues 20 ••419 '347 '32 '40 1933 average 102.5 87.1 73.4 69.2 70.5 80.6 1933 average 104.8 63 78 1934 average 103.5 97.3 84.5 81.9 83.8 87.8 1934 average 120.7 •72 69 1935 average 106.0 109.4 88.2 79.4 98.2 1935 average 133.8 78 '71 1935—May 106.8 107.5 87.1 87.3 76.5 97.4 1935—May 134.8 73 '64 June 107.0 107.8 88.3 87.3 79.3 98.4 June 134.0 76 r87 70 July 107.3 112.9 89.2 88.5 78.8 100.2 July 134.8 79 '91 '73 August 106. 5 114.4 89.9 89.0 79.6 100.9 August 135.4 83 95 '81 September. 104.7 110.7 90.4 89.'4 80.6 101.0 September- 135.0 85 98 82 October 104.9 109.4 89.8 89.8 78.4 101.0 October 134.8 '85 '99 '81 November. 105.3 111.6 91.1 90.8 79.8 102.7 November. 136.9 '93 '107 '90 December.. 105.2 112.6 92.5 91.0 83.1 103.1 December.. 137.0 '95 '109 1936—January 105.8 113.2 95.3 92.5 88.7 104.7 1936—January 137.3 ••100 '115 '97 February. _. 106.3 114.4 97.2 93.0 93.6 105.1 February... 138.7 '106 '121 103 March 106.6 116.0 96.6 92.1 92.7 105.1 March 139.6 109 125 103 April 107. 0 116.2 95.9 91.2 91.6 104.8 April 138.8 '109 '125 '102 May 107.1 116.2 95.5 90.6 90.8 105.0 May 138.6 101 116 95 May 6 107.0 116.1 95.5 90.8 90.9 104.8 May 6 138.2 102 118 May 13 107.1 116.3 95.4 90.7 90.5 104.9 May 13 138.5 101 116 93 May 20 107.4 116.1 95.6 90.5 91.0 105.3 May 20 138.7 101 116 95 May 27 107.3 116.4 95.9 90.7 91.9 105.2 May 27 138.8 104 119 1 Monthly data are averages of daily or weekly figures. ' Revised. 2 Average prices of all outstanding bonds due or callable after 8 years. 1 Monthly data are averages of daily or weekly figures. » Prices derived from average yields. 2 Average derived prices. Source.—U. S. Treasury bonds, based on price quotations from Treas- 3 Number of issues revised to represent more accurately the stocks ury Department; for other bonds, Standard Statistics Co. included; monthly averages revised to include Wednesday figures by Back figures.—See Annual Report for 1934 (table 93); for U. S. Treasury weeks ending within the month. bonds, see May BULLETIN, p. 317. Source.—Standard Statistics Co. Back figures.—See Annual Report for 1934 (table 93). CAPITAL ISSUES [In millions of dollars] For new capital ?or refunding T (n o e t w al Domestic Domestic and Total Y m e o a n r t o h r fu r n e d - - m a ( e d n o s d - tic S a t n a d te Fed- Corporate e F i o gn r- 1 m T ( o e d s t o a t - i l c S a t n a d te F e e ra d l - Corporate e F ig o n r- 1 ing) for- Total mu- eral Bonds and Total mu- agen- Bonds eign) nici- agen- Total and Stocks for- nici- cies2 Total and Stocks pal cies2 notes eign) pal notes 1926 7,359 6,314 5,189 1,344 91 3,754 2,667 1,087 1,125 '1,044 881 22 40 820 687 133 163 1927 9,774 7, 556 6,219 1, 475 87 4,658 3,184 1,474 1,337 '2, 218 1,978 35 93 1,850 1,586 264 241 1928 9,898 8,040 6,789 1,379 64 5, 346 2,385 2,961 1,251 1,858 1,620 36 0 1,584 1,054 530 238 1929 11, 513 10, 091 9,420 1, 418 0 8,002 2,078 5,924 671 1,422 1, 387 13 0 1,374 542 833 1930 7,619 6,909 6,004 1,434 87 4,483 2,980 1, 503 905 '709 527 53 0 474 451 23 182 1931 4,038 3,089 2,860 1,235 75 1,551 1,239 311 229 949 893 21 51 821 789 32 56 1932 1,751 1,194 1,165 762 77 325 305 20 29 '557 498 87 93 319 315 4 59 1933 1,063 720 70S 483 64 161 40 120 12 '343 283 37 26 219 187 32 60 1934 2,160 1,386 1,386 803 405 178 144 35 0 '774 765 136 317 312 312 0 9 1935 r4, 672 '1, 486 1,438 884 150 404 334 69 '48 '3,186 3,160 309 987 1,864 1,782 81 26 1935—May. __ '472 '87 86 41 0 45 39 6 n 384 384 35 267 82 82 0 0 June 512 58 58 44 0 14 14 0 0 454 454 19 319 115 115 0 0 July— 640 134 134 79 0 55 27 28 0 '506 506 9 11 487 482 5 0 Aug.... '424 '198 152 36 85 30 29 '46 '227 208 28 (3) 180 156 24 18 Sept.... 436 177 177 132 0 45 42 3 0 259 259 15 13 231 230 1 0 Oct '362 '145 144 56 15 73 70 3 1 217 213 10 24 179 164 16 4 Nov '380 116 116 82 0 33 30 3 0 '264 261 26 17 217 216 1 4 Dec 417 231 231 124 40 67 48 19 0 '186 186 4 81 101 85 16 0 1936—Jan 402 122 115 50 0 65 61 4 7 '280 240 38 (3) 201 201 (3) 40 Feb.... 302 107 107 89 4 13 4 10 0 195 195 8 6 181 170 11 0 Mar.... '768 130 130 60 11 59 46 13 '637 614 69 9 536 525 11 23 April. _.'1, 050 '177 177 49 0 128 102 26 '0 '873 843 53 199 530 492 38 30 May... 413 112 112 68 6 38 13 24 0 302 302 31 4 267 252 16 0 ' Revised. 1 Includes issues of noncontiguous U. S. Territories and Possessions. 2 Includes publicly offered issues of Federal land banks, Federal intermediate credit banks, Federal Farm Mortgage Corporation, and Home Owners' Loan Corporation. a Less than $500,000. Sources—-For domestic issues, Commercial and Financial Chronicle; for foreign issues, U. S. Department of Commerce. Monthly figures subject to revision. Back figures.—See Annual Report for 1934 (table 92) for figures of new issues—annual and quarterly basis. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1936 FEDERAL RESERVE BULLETIN 485 TREASURY FINANCE UNITED STATES GOVERNMENT DEBT VOLUME AND KIND OF SECURITY MATURITIES [In millions of dollars] [In millions of dollars] Interest bearing Non- Interest-bearing debt outstanding May 29, Total inter- 1936 End of period (gross est debt) Total Bonds Notes C ic e a r t t e i s f- Bills b i e n a g r- Total Bonds1 Notes C ic e a r t t e if s - Bills June 1932 19,487 19,161 14, 250 1,465 2,831 616 326 June 1933 22, 539 22,158 14, 223 4,780 2,200 954 381 Total 30,823 16,030 12, 381 258 2,153 June 1934 27,053 26, 480 16,510 6,932 1., 635 1,404 573 Obligations maturing: Before July 1, 1936 887 687 200 1935 July 1-Sept. 30, 1936 _ 1,579 878 701 May 28, 639 27, 738 15,157 10,471 157 1,953 901 Oct. 1-Dec. 31, 1936 1,209 358 851 June 28, 701 27, 645 14,936 10, 501 156 2,053 1,056 Jan. 1-Mar. 31, 1937 829 429 401 July 29,123 27,923 14, 576 11,065 254 2,028 1,200 Apr. 1-June 30, 1937 502 502 August 29,033 27,956 14, 715 11,036 252 1,952 1,076 July 1-Dec. 31, 1937 817 817 September. __ 29,421 28, 432 14,300 11, 929 251 1,952 989 1938 1,946 1,946 October 29,462 28, 380 13,998 11,929 250 2,204 1,081 1939 2,762 2,762 November 29,634 28,617 14,008 11,957 249 2,404 1,017 1940 2,854 2,854 December __. 30, 557 29, 596 14, 672 12, 274 247 2,404 961 1941 _ 1,511 834 677 1943 898 898 1936 1945 . 1,401 1,401 January 30,516 29,618 14,688 12, 272 254 2,404 899 1946 1,519 1,519 February 30, 520 29, 646 14, 713 12, 270 258 2,405 874 1947 1,697 1,697 March 31,459 30, 591 15, 981 12, 400 258 1,953 868 1948 1,036 1,036 April 31, 425 30, 601 16,005 12, 383 259 1,953 825 After 1948 8,185 8,185 May 31, 636 30, 823 16, 030 12, 381 258 2,153 1814 Other obligations 2 __ 1,190 460 471 258 »• Revised, i Issues classified as of date of final maturity; most issues callable at i Includes $438,000,000 of Government liability for retirement of earlier dates; postal-savings bonds only issues callable before 1940. national bank and Federal Reserve bank notes, as a result of deposit 2 Includes United States savings bonds and such issues as postalof funds by banks; this compares with $815,000,000 on July 31, 1935, savings bonds and notes, retirement-fund notes, and adjusted-serviceand $636,000,000 on May 31, 1935. certificate series, in which special funds are invested. SUMMARY OF TREASURY OPERATIONS [On basis of daily statement of United States Treasury. In millions of dollars] General and special funds Trust ac- Receipts Expenditures 2 counts, Increase or deetc. s crease during Excess excess period Period c M el i l s a - - General * Recovery and relief 3 ( c o + e f i ) p r o e ts - r ( c o + e f i ) p r o e ts - r Total c ta I o x n m e - s e n i r n n e e n t v u o a e e e u l r - - s ot A he ll r Total e I p n s u t t b e o l r i n - c o A th l e l r Total Relief P w u o b r l k i s c ot A he ll r4 p t e u e n r x e d - s i- p t e u e n r x e d - s i- G b f a e u l n a n e n d r c a e l G d r e o b s t s debt Fiscal year ending June: 1933 2,080 746 858 4,681 2,715 31, 277 -2. 602 -5 +445 +3, 052 1934 3,116 818 1,470 6,745 757 1,984 4,004 1,844 645 1,515 -3, 630 +835 +1, 720 +4, 514 1935 3,800 1,099 1,657 1,044 6,802 821 -2, 325 '3, 657 2,342 1,020 '294 -3, 002 +613 -741 +1, 648 11 months ending: May 1934 2,725 630 1,339 755 6,012 635 1, 796 3,581 1,694 526 1,361 -3, 287 +831 +1,160 +3, 616 May 1935 3,337 845 1,519 972 6,062 702 2,128 3, 232 2,084 938 209 -2, 725 +515 -625 +1, 585 May 1936 3, 587 1,116 1,846 625 6,140 618 2, 487 3,035 953 1,786 296 -2, 553 +135 +517 +2, 936 1935— J M un a e y 4 24 6 6 4 2 2 5 3 4 1 13 3 8 7 8 7 6 2 5 74 4 0 2 1 2 1 4 9 r 170 r 4 3 2 4 5 7 2 1 5 7 8 8 8 7 2 8 r 9 8 2 5 - -2 2 7 9 7 6 + + 3 9 4 9 8 - + 11 2 5 2 + -3 6 0 3 July 279 23 165 91 673 8 197 347 114 88 146 -394 -77 -52 +419 August 299 24 219 56 508 27 318 289 158 e 9 139 -210 -17 -314 -87 September 421 231 143 47 563 101 193 245 142 87 16 -143 +78 +324 +389 October 235 30 153 53 624 104 217 286 145 123 19 -389 +23 -325 +40 November 234 19 142 74 487 10 234 262 127 130 4 -253 +42 -39 + 172 December 434 228 153 52 591 107 216 247 97 148 2 -157 +8 +774 +923 1936—January.^ 228 35 138 55 456 19 237 241 64 225 6 49 -228 +64 -205 -41 February 218 43 132 43 496 31 197 301 43 218 40 -277 +37 -237 +3 March 752 412 291 48 570 131 164 214 11 254 6 51 +181 -22 +1, 099 +939 M Ap a r y il 2 2 3 5 1 6 3 3 6 5 1 1 5 5 2 8 4 6 3 3 6 5 1 5 4 8 72 2 2 2 2 2 5 6 8 8 3 2 1 9 4 1 3 2 3 1 2 2 5 6 9 4 2 7 2 - -3 3 0 8 2 3 +7 y -42 Q 4 A + - 2 3 1 4 1 r Revised. i Includes processing taxes, customs, and miscellaneous receipts. 2 Excludes public-debt retirement. 3 Prior to July 1933, recovery and relief expenditures included only net expenditures of the Reconstruction Finance Corporation; other items subsequently classified as recovery and relief expenditures were included in general expenditures. 4 Includes expenditures classified by the Treasury as agricultural aid, aid to home owners, and miscellaneous, which includes direct loans and expenditures of the Reconstruction Finance Corporation. 6 Includes also increment resulting from reduction in the weight of the gold dollar, receipts from seigniorage, expenditures chargeable against increment on gold (other than for retirement of national-bank notes), and beginning June 1935 transactions in checking accounts of certain special governmental agencies whose balances were transferred on May 31, 1935, to these accounts. 6 Excess of credits. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

486 FEDERAL RESERVE BULLETIN JUNE 1936 GOVERNMENTAL CORPORATIONS AND CREDIT AGENCIES, APRIL 30, 1936 [Based on compilation by U. S. Treasury Department from reports received from organizations concerned. In millions of dollars] Financed partly from Government Financed wholly from Government funds funds Total Total Recon- Com- Public Agricul- Farm Other Home s F tr i u n c a t n i c o e n m C o re d d it i y t A W d o m rk in s - c tu re r d a i l t Other m ga o g rt e - c f r a e r d m it m ga o g rt e - Other April Mar. April Corpo- Corpo- istra- institu- institu- institu- institu- 30,1936 31,1936 30,1935 ration ration tion tions tions tions tions ASSETS Loans and preferred stock: Loans to financial institutions 456 1 106 4 567 578 836 Preferred stock, etc 845 (1) 7 852 856 871 Home mortgage loans 2,960 2,960 2,952 2,590 Farm mortgage loans 2,949 2,949 2,943 2,777 Other agricultural loans 9 292 39 146 219 (i) 705 707 492 All other loans 828 133 215 1,176 1,137 1,018 Total loans and preferred stock 2,137 292 133 39 362 2,949 219 3,073 4 9,209 9,173 8,584 Cash __ 3 3 4 88 94 19 79 29 319 340 336 United States direct obligations 3 24 40 93 8 301 470 470 469 Obligations of Government credit agencies: Fully guaranteed by U. S IS 2 85 8 101 214 216 220 Production credit association class 24 2 (2) 26 27 47 A stock 74 74 74 77 Accounts and other receivables.. 35 10 2 14 141 4 63 4 273 268 168 All other assets 4 0) 16 0) s 198 142 0) 3 148 5 513 489 370 Total assets other than interagency 2 2,179 306 150 166 688 3,367 420 3,379 444 11,099 11,055 10, 272 LIABILITIES Bonds, notes, and debentures: Guaranteed by United States . 252 1,411 4 3,033 4,696 4,676 3,707 Other 2 . . (i) 2 1, 214 163 4 0) 1,382 1,375 1,788 Other liabilities (including reserves) 28 0) 3 24 142 3 99 28 328 332 218 Total liabilities other than interagency 2 280 0) 3 24 2,767 166 3,136 29 6,406 6,383 5,714 Excess of assets over liabilities, excluding interagency transactions.. 1,899 306 150 163 664 600 254 242 416 4,693 4,672 ",559 Privately owned interests 152 2 29 163 346 344 335 U. S. Government interests.._ 1,899 306 150 163 664 448 252 213 253 4,347 4,328 4,224 1 Less than $500,000. * Excludes $761,000,000 of Federal land bank bonds held by Federal Farm Mortgage Corporation. »Includes $87,000,000 of unclassified assets of Federal savings and loan associations. * Includes unissued bonds covering loans in process. * Corresponding figure for Feb. 29, and March 31, 1936 corrected to read $192,000,000 and $194,000,000 respectively. NOTE.—For explanation of table and back figures see BULLETIN for April 1936, p. 220. RECONSTRUCTION FINANCE CORPORATION LOANS AND INVESTMENTS [Amounts outstanding. In thousands of dollars] May 31, Nov. 30, Dec. 31, Jan. 31, Feb. 29, Mar. 31, Apr. 30 May 29, 1935 1935 1935 1936 1936 1936 1936 1936? Loans to financial institutions 681, 416 533,769 524,127 497,289 474,596 423,061 410, 383 1 403,148 Loans on preferred stock of banks and insurance companies._ 48,183 47,880 47,909 47, 573 46, 730 46,820 46, 053 46,092 Preferred stock, capital notes, and debentures 871, 449 879,348 871, 760 877, 679 861, 749 850,986 851, 620 846, 614 Agricultural loans _ 22,140 22, 524 22, 246 21, 994 21,910 21,873 8,623 8,684 Loans to railroads (including receivers) _ _ 413, 414 412, 765 396, 250 393,712 390, 202 389,239 394,168 393,154 Loans for self-liquidating projects 137, 550 174,373 147,563 154,947 156, 592 160,951 164, 891 174,149 Loans to industrial and commercial businesses- 17, 678 37, 335 40,013 43, 686 46,488 . 48, 287 50,194 50, 779 Loans to drainage, levee, and irrigation districts 25, 815 45,488 50,025 51, 790 51,853 53,420 54,713 55, 228 Other loans. 84 1,947 2,283 1,858 3,876 3,917 3,587 3,518 Securities purchased from Public Works Administration 15, 753 115,238 154,001 124,689 154,242 151, 593 143, 838 129, 634 Total loans and investments, other than interagency-. 2, 233, 483 2, 270,669 2,256,177 2,215,216 2, 208,238 2,150,148 2,128,071 2,110, 999 Loans to Federal land banks 66, 398 50,108 45, 074 35, 819 35,215 34, 723 34, 365 33, 948 Loans to Commodity Credit Corporation. _ 55, 530 265,994 267,541 297,091 297,449 297,279 291,961 172,800 Capital stock of Commodity Credit Corporation 97,000 Capital stock of, and loans to R. F. C. Mortgage Co 10, 000 13, 555 14, 721 15, 523 15,952 16, 725 17, 623 18,429 Preferred stock of Export-Import banks 12, 500 10,000 10,000 10,000 10,000 10,000 10,000 10,000 Total loans and investments.. 2,377,912 2,610,324 2, 593, 513 2,573,649 2,566,854 2, 508,875 2, 482, 020 2, 443,175 p Preliminary. 1 Includes $149,,000,000 of loans for distribution to depositors of closed banks. NOTE.—For explanation of table and back figures, see April BULLETIN, p. 220. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

487 JUNE 1936 FEDERAL RESERVE BULLETIN FARM CREDIT ADMINISTRATION LOANS AND DISCOUNTS OUTSTANDING, BY INSTITUTIONS [In thousands of dollars] Farm m b o y r tg i— age loans F c e re d d e i r t a l b a in n t k e r l m oa e n d s i a to te Loans to cooperatives by— and discounts for— End of month Federal B La a n n d k p c p R r r c o o e u e r a d d a g l g u i t t i t u r i o c o i c r t n - a n i o a o l s r l n , - fi i n n t O i a s o t n t h n i c t e s i u r , n - g ti P a o s r t n s i o o o d c n c u r i s e a c d - - it t R i u a r t r e g a a c g t r l o i i i o c o r c u p n n r o l s e a - - d l - c d r E g r l o o o e m p a u n n e a c g r s y n h - d t m F i e e n d d te e ia r r - a te l B c a a o t n i o v k p s e e s r f , o - r M A t g a u r r r i k c a e u l t l - land banks Commis- credit as- except credit including ing Act sioner sociations, coopera- banks Central revolvand banks tives Bank ing fund for cooperatives 2 1933—December. 1,232, 707 70, 738 73, 263 60,989 27 144, 636 89,811 15,211 18,697 157, 752 1934—December. 1,915, 792 616,825 99,675 55,672 60,852 87,102 110,186 27,851 54,863 1935—April 1,975, 737 696,834 124,315 55, 832 93,025 78, 351 161,178 30,050 30,119 49, 761 May 1,998, 228 716, 243 129,954 56,897 101,269 76,508 192,476 26,420 31, 741 47,456 June 2,016, 825 733, 489 130, 559 57, 759 106,688 72, 765 196, 250 10,028 23,937 49,422 July 2,023,859 742.897 128,851 58,864 110,030 68,670 196, 732 5,023 25,037 49,196 August 2,036,067 754, 502 125,137 58, 761 109,020 64,582 195,943 5,539 31,455 46,497 September. 2,047,390 765,319 115, 426 55, 661 101,427 59, 225 192,182 4,755 43,140 46,714 October.—. 2,058, 693 777, 214 100, 634 49,114 92, 573 *51, 656 182, 678 4,084 48,179 46, 074 November. 2,065,620 785.898 100,343 46,867 91, 522 46,220 175,438 3,221 51, 246 44,688 December. 2,071,925 794, 726 104, 706 46,490 94,096 43,400 172,489 2,731 50,013 44,433 1936—January.... 2,066,308 802, 782 105,457 46,045 96,240 41,489 170,072 2,241 46, 566 44,286 February.. 2,058, 512 810,811 110,806 46, 679 103,002 40, 510 168, 700 2,117 42, 720 44,155 March 2,059,978 817.899 122,849 48,045 116, 392 39,617 167,826 2,074 41,083 44,306 April 2,061, 881 823,110 132, 715 50,015 127, 511 38, 665 175,151 1,685 40,015 43, 523 * Does not include loans by joint stock land banks, which are now in liquidation. 2 Some of the loans made by the regional agricultural credit corporations and the banks for cooperatives and most of the loans made by the production credit associations are discounted with the Federal intermediate credit banks. The amounts in this column are thus included in the 3 columns under those headings. Such loans are not always discounted in the same month in which the original credit is extended. FEDERAL HOME LOAN BANK BOARD OBLIGATIONS FULLY GUARANTEED BY THE UNITED STATES x LOANS OUTSTANDING, BY INSTITUTIONS [Loans in thousands of dollars] AMOUNTS OUTSTANDING, BY AGENCIES [In millions of dollars] Home mortgage loans by— Federal Home Recon- Federal savings and loan Federal Farm Owners' struction associations 2 home End of month Total Mortgage Loan Finance loan Corpora- Corpora- Corpora- End of month Home bank tion tion 2 tion 3 Owners' Number of Loans reported loans to Loan Cor- associations member poration l institu- 1933—December. 180 180 New Convert- tions 3 Re- associ- ed asso- 1934—September. 1,875 733 896 246 Total port- ations ciations October... 2,596 805 1,543 248 ing November. 2,823 878 1,695 249 D ecember. 3,063 980 1,834 249 1932—December 838 1935—January. __ 3,300 1,041 2,009 250 1933—December... 105, 920 59 85, 442 February.- 3,480 1,089 2,140 251 1934—D ecember.. _ 2,196,988 639 455 10, 758 58,976 86, 658 March 3,590 1,124 2,215 251 April 3,660 1,154 2,256 250 1935—April 2, 578,883 778 613 20,800 112,847 74,011 May 3,728 1,188 2,290 250 May 2, 620,119 808 623 24,081 123, 741 75, 836 June 4,123 1,226 2,647 250 June 2,660, 677 851 655 27,070 138,129 79, 233 July 4,205 1,274 2,682 249 July 2, 702, 247 894 691 32,850 146,161 80,877 August 4,248 1,282 2,716 250 August 2, 747,022 922 758 37, 345 192, 959 86,025 September 4,369 1,368 2,748 253 September._ 2, 788, 203 949 828 44,072 219, 980 90, 432 October. _. 4,421 1,382 2,786 253 October 2, 838, 086 979 851 53, 362 239, 263 95, 595 November. 4,460 1,387 2,819 253 November._ 2, 886,013 1,002 851 54, 703 240, 777 97,089 December. 4,494 1,387 2,855 252 December... 2, 940,029 1,023 881 60,103 255, 580 102, 795 1936—January... 4,562 1,399 2,911 253 1936—January 2,984,438 1,044 898 60, 457 269,186 102,800 February._ 4,630 1,407 2,970 253 February 3,014, 423 1,061 898 64,092 272, 554 102,942 March 4,654 1,407 2,995 252 March 3,040,137 1,078 980 74, 915 291, 491 103, 358 April 4,676 1,411 3,013 252 April 3, 060, 029 1,102 P980 P81, 499 P296, 337 105, 972 1 Principal amount of obligations guaranteed as to interest and princip Preliminary. pal. 1 Loans closed. 2 Excludes obligations guaranteed as to interest only. 2 No monthly reports prior to September 1934; they now exclude 3 Excludes obligations held by U. S. Treasury and reflected in the largely new associations recently chartered and inactive associations. public debt. Figure for December 1933 includes notes given in purchase 3 Includes loans to Federal savings and loan associations, all of which of gold which were retired in February 1934. are members, and a negligible amount to others than member institutions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

488 FEDERAL RESERVE BULLETIN JUNE 1936 PRODUCTION, EMPLOYMENT, AND TRADE [Index numbers; 1923-25 average=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 Department Y an e d ar Total Ma tu n r u e f s ac- Minerals Total Residential All other ployment 3 ro p l a l y s 3 loadings 4 * sto ( r v e a l s u a e le ) s* month Ad- Unad- Ad- Unad- Ad- Unad- Ad- Unad- Ad- Unad- Ad- Unad- Ad- Unad- Unad- Ad- Unad- Ad- Unadjusted justed justedjusted justed justed justedjusted justed justed justed justed justed justed justed justed justed justed justed 1919 83 84 77 63 44 79 107 97 84 78 1920 87 87 89 63 30 90 108 117 91 94 1921 67 67 70 56 44 65 82 76 79 87 1922 85 86 74 79 68 88 91 81 87 88 1923 101 101 105 84 81 86 104 103 100 98 1924 95 94 96 94 95 94 97 96 97 99 1925 104 105 99 122 124 120 99 101 103 103 1926 108 108 108 129 121 135 101 104 106 106 1927 108 106 107 129 117 139 99 102 103 107 1928 . 111 112 106 135 126 142 99 102 • 103 108 1929 119 119 115 117 87 142 105 109 106 111 1930 . 98 95 99 92 50 125 92 89 92 102 1931 81 80 84 63 37 84 77 68 75 92 1932 64 63 71 28 13 40 64 46 56 69 1933 .._ 76 75 82 25 11 37 69 49 58 67 1934 79 78 86 32 12 48 79 62 62 75 1935 90 90 91 37 21 50 82 70 63 79 1933 Mar 59 60 56 58 81 74 14 14 8 8 18 18 59 59 37 50 48 57 50 April 66 67 65 68 73 65 14 16 10 11 17 19 60 60 39 53 51 64 68 May 78 79 77 80 79 77 16 19 11 13 20 24 63 63 43 55 55 67 67 June 91 91 93 92 85 83 18 21 13 14 23 27 67 67 47 62 61 68 64 July 100 96 102 97 91 90 21 24 13 13 28 32 73 72 51 65 66 70 48 Aug 91 90 91 89 91 95 24 25 12 12 33 36 77 76 57 61 65 75 59 Sept 84 85 83 84 87 94 30 30 12 12 45 45 78 80 59 60 68 69 73 Oct. 76 78 76 76 81 89 37 35 12 12 57 53 78 80 59 58 66 69 77 Nov 72 72 70 70 82 85 48 42 13 12 76 66 76 76 56 59 60 66 75 Dec. 75 69 73 67 86 81 57 45 13 11 93 73 75 75 55 63 56 70 121 1934 Jan. 78 77 76 75 88 86 49 40 12 10 80 64 75 73 54 64 58 71 57 Feb 81 83 80 82 92 89 44 38 12 10 70 60 78 78 61 64 61 71 59 Mar 84 87 82 86 100 91 33 33 11 12 51 50 81 81 65 66 63 78 73 ApriL__. 86 88 85 89 90 81 32 36 12 14 48 54 82 82 67 62 60 74 73 May 86 89 86 89 88 86 26 32 11 13 38 47 83 83 67 63 63 77 77 June 84 84 83 84 87 86 26 31 12 13 38 46 82 81 65 64 64 74 70 July 76 73 74 71 84 84 27 30 12 12 39 44 80 79 61 61 63 73 51 Aug 73 73 72 71 80 83 27 28 10 10 40 43 79 80 62 59 63 77 60 Sept 71 73 69 70 82 87 29 30 11 11 44 45 74 76 58 59 67 75 79 Oct. 74 75 72 73 81 87 31 29 12 12 46 43 77 78 61 57 64 73 82 Nov 75 74 74 73 81 84 31 28 11 11 48 41 77 77 60 59 60 74 83 Dec 88 78 85 76 90 85 31 25 12 10 47 36 79 78 63 64 56 78 135 1935 Jan 91 88 90 r 87 94 91 27 22 12 10 39 32 81 79 64 64 58 74 59 Feb 89 91 88 91 96 92 28 24 14 13 39 33 82 81 69 65 61 75 61 Mar 88 91 86 91 97 90 26 26 16 16 35 34 83 83 71 65 62 82 71 ApriL_._ 86 89 86 91 87 79 27 30 18 22 33 38 82 83 71 61 59 73 79 May 85 87 84 87 89 88 27 32 21 25 32 39 • 81 81 69 61 61 76 76 June 86 86 84 ' 85 98 97 30 35 24 26 36 43 80 80 66 63 63 80 76 July 86 83 86 83 84 84 35 39 25 25 43 50 81 80 65 58 60 80 55 Aug 87 87 r 88 87 81 85 38 40 24 24 50 54 82 82 70 60. 64 78 61 Sept 90 90 91 89 87 92 43 44 25 25 58 59 82 84 72 62 70 81 86 Oct 95 97 95 96 93 100 48 45 25 25 66 62 84 85 75 64 73 77 86 Nov... r 97 97 98 98 92 95 60 53 26 25 88 76 85 85 75 66 67 81 91 Dec 104 96 104 r 95 101 96 67 53 26 22 101 79 86 85 r 76 71 62 84 145 Jan 98 95 97 95 103 99 61 50 25 21 90 73 85 83 r 73 70 63 79 63 Feb 94 95 91 93 110 106 52 44 25 22 73 62 84 83 r 73 70 65 80 66 Mar 93 96 93 97 95 89 47 47 26 28 63 62 84 84 76 66 62 88 77 P100 P103 P99 P105 105 94 47 53 30 35 60 67 85 85 78 69 66 81 85 May 70 71 P88 P88 p Preliminary. r Revised. * Average per working day. 1 For indexes of groups and separate industries see pp. 489-490; for description see BULLETIN for February and March 1927. 2 3-month moving average of F. W. Dodge Corporation data centered at second month; for description see BULLETIN for July 1931, p. 358. 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 F. R. Board of Governors see BULLETINS for June 1934, pp. 324-343, and December 1935, p. 888. For current indexes of groups and separate industries see pp. 491-492. Underlying figures are for pay-roll period ending nearest middle of month. * For indexes of groups see p. 494. Back figures.—See Annual Report for 1934 (tables 95 and 100). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1936 FEDERAL RESERVE BULLETIN 489 INDUSTRIAL PRODUCTION, BY INDUSTRIES (ADJUSTED INDEXES) [Index numbers of the Board of Governors; adjusted for seasonal variation. 1923-25 average=100] 1935 1936 Industry Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. Manufactures—Total. 86 84 84 95 104 97 91 IRON AND STEEL.. 81 103 83 100 Pig iron. _. 56 53 53 60 65 71 67 63 77 Steel ingots..-. 67 70 83 90 106 85 102 TEXTILES 102 100 105 104 106 113 106 111 105 102 100 100 Cotton consumption '1 ' 0 8 9 5 1 8 2 5 4 1 8 2 2 2 1 8 2 2 8 1 8 3 5 2 1 9 1 5 2 1 9 2 9 6 1 9 1 8 8 1 1 1 0 4 8 1 1 0 0 6 7 1 9 1 9 1 1 9 0 6 0 105 Wool 131 153 148 156 160 127 146 134 125 117 120 105 Consumption '91 107 108 110 108 121 118 122 114 117 99 95 Machinery activity i '79 71 76 83 74 78 72 66 75 68 68 Carpet and rug loom activity i 117 116 133 113 134 132 112 119 91 107 102 Silk deliveries FOOD PRODUCTS 78 74 74 76 78 82 83 92 84 87 90 Slaughtering and meat packing.. 74 67 69 76 76 82 79 80 84 77 83 89 Hogs 54 44 46 50 50 57 54 54 61 52 61 68 Cattle.. 94 92 93 107 107 111 107 110 111 109 109 114 Calves 113 108 106 115 119 124 117 118 126 120 109 115 116 Sheep 157 161 151 154 159 144 154 148 145 152 145 151 134 Wheat flour 83 91 73 82 88 86 84 91 92 88 Sugar meltings 80 75 78 81 78 92 124 95 PAPER AND PRINTING: Newsprint production— 59 64 60 58 62 61 64 60 60 62 60 Newsprint consumption. 119 121 124 118 120 127 124 125 133 124 127 132 131 TRANSPORTATION EQUIPMENT: Automobiles '104 '85 '99 '94 '77 '93 '125 '110 '90 '109 124 Locomotives 9 14 10 3 2 1 1 3 0 0 1 Shipbuilding 91 56 21 15 35 64 119 179 129 141 138 LEATHER AND PRODUCTS 115 114 104 109 105 104 105 109 124 118 107 109 Tanning 98 100 97 95 93 94 97 105 105 103 93 97 Cattle hide leathers.... 93 98 90 89 91 90 98 105 103 96 95 94 95 Calf and kip leathers._. 88 87 104 86 77 83 74 84 95 103 85 77 85 Goat and kid leathers.. 120 119 106 121 114 115 119 124 118 122 '110 103 115 Boots and shoes 126 123 109 118 113 110 110 111 137 127 121 117 CEMENT AND GLASS: Cement 51 55 58 52 44 47 52 59 47 49 58 71 Glass, plate 185 155 162 167 179 193 200 225 161 178 211 NONFERROUS METALS:2 Tin deliveries! 97 84 73 85 91 92 92 80 81 103 105 95 101 FUELS, MANUFACTURED: Petroleum refining 153 160 166 168 172 176 176 173 172 168 178 Gasoline l 194 204 214 220 219 223 227 225 220 214 215 210 223 Kerosene 91 94 99 91 93 92 95 94 86 94 94 98 104 Fuel oil! 96 104 105 100 103 110 110 115 121 121 130 119 119 Lubricating oil L.. 100 100 97 92 100 102 103 106 104 96 98 105 116 Coke, byproduct 87 87 84 91 95 97 100 106 104 103 100 112 RUBBER TIRES AND TUBES.. 75 79 83 92 102 104 133 142 116 82 77 Tires, pneumatic 91 78 82 86 96 105 106 137 147 120 84 80 Inner tubes 56 55 60 62 80 84 102 104 90 64 62 TOBACCO PRODUCTS.. 138 134 138 140 130 129 138 147 148 148 140 152 Cigars 67 66 67 70 67 69 70 73 73 75 71 74 Cigarettes 193 186 193 196 178 175 190 191 205 208 207 193 214 Minerals—Total. 87 84 81 87 93 92 110 95 105 Bituminous coal... '61 79 55 58 58 '75 71 '78 80 92 70 84 Anthracite 69 71 97 62 36 65 48 48 71 70 93 48 63 Petroleum, crude.. 130 131 133 134 133 135 140 144 146 148 143 146 150 Iron ore 53 53 50 54 62 62 44 Zinc 73 79 81 84 80 82 91 Lead 63 55 60 59 68 67 70 Silver 51 47 73 59 71 75 68 93 i Without seasonal adjustment. * Includes also lead and zinc; see "Minerals." P Preliminary. ' 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, box board, mechanical wood pulp, chemical wood pulp, paper boxes, and lumber, usually published in this table, are in process of revision. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

490 FEDERAL RESERVE BULLETIN JUNE 1936 INDUSTRIAL PRODUCTION, BY INDUSTRIES (UNADJUSTED INDEXES) [Index numbers of the Board of Governors; without seasonal adjustment. 1923-25 average=100] 1935 1936 Industry Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. Manufactures—Total 91 87 85 83 87 89 96 98 '95 95 93 97 P105 IRON AND STEEL 74 72 66 64 79 83 85 89 90 83 87 94 111 Pig iron.. . _. _ _. 56 57 53 50 58 60 65 70 69 67 64 67 82 Steel ingots 76 73 68 65 81 85 87 91 92 85 89 96 114 TEXTILES 100 101 95 97 99 106 116 111 105 110 108 102 103 Cotton consumption '91 88 79 75 77 92 102 101 100 111 106 105 112 Wool '107 117 114 119 126 115 134 124 114 108 117 98 88 Consumption 127 141 133 139 149 133 161 146 126 120 131 107 90 Machinery activity '91 99 107 108 110 108 121 118 122 114 117 99 95 Carpet and rug loom activity.. '79 80 71 76 83 74 78 72 66 66 75 68 68 Silk deliveries 116 110 103 126 117 141 132 116 106 112 98 103 101 FOOD PRODUCTS 76 78 73 74 74 81 86 86 82 92 82 86 85 Slaughtering and meat packing.. ._ 69 72 66 66 68 74 84 87 91 96 75 78 80 Hogs ... 52 52 45 41 38 37 49 60 71 81 57 62 61 Cattle 85 91 86 92 104 119 129 123 115 112 96 95 101 Calves... 123 122 110 111 109 119 123 120 120 112 101 116 126 Sheep 148 158 147 154 160 168 170 146 142 154 136 137 126 Wheat flour 80 78 80 77 78 97 99 93 81 89 93 86 80 Sugar meltings 93 99 89 102 88 86 74 67 52 82 91 113 110 PAPER AND PRINTING: Newsprint production 60 65 64 58 56 62 61 63 63 61 60 61 61 Newsprint consumption 127 124 123 105 107 125 132 134 137 119 125 138 141 TRANSPORTATION EQUIPMENT: Automobiles '134 '107 '112 '98 69 '28 '77 '124 '125 108 '93 '124 149 Locomotives g 13 10 3 2 1 1 4 3 o 0 1 Shipbuilding 88 71 27 22 51 64 35 105 138 92 100 107 LEATHER AND PRODUCTS. 112 105 100 107 116 120 115 104 106 109 '113 110 107 Tanning 95 95 95 95 95 100 103 103 102 99 99 92 95 Cattle hide leathers 93 93 88 86 90 94 101 104 100 97 101 95 95 Calf and kip leathers 79 83 100 100 93 96 88 80 81 85 78 69 76 Goat and kid leathers 119 110 106 113 111 121 124 122 127 116 '114 105 114 Boots and shoes _._ _. 123 112 104 115 130 132 123 105 108 116 122 '122 115 CEMENT AND GLASS: Cement 50 65 71 63 57 59 59 58 46 29 29 42 70 Glass, plate 205 169 165 168 169 181 193 192 202 201 174 194 235 NONFERROUS METALS: l Tin deliveries.._ 97 84 73 85 91 92 92 80 81 103 105 95 101 FUELS, MANUFACTURED: Petroleum refining 153 160 166 167 169 173 176 176 174 170 172 168 178 Gasoline 194 204 214 220 219 223 227 225 220 214 215 210 223 Kerosene 90 90 92 85 88 94 100 101 93 96 96 95 103 Fuel oil 96 104 105 100 103 110 110 115 121 121 130 119 119 Lubricating oil 100 100 97 92 100 102 103 106 104 96 98 105 116 Coke, byproduct 87 89 85 81 88 93 97 102 107 105 106 103 114 RUBBER TIRES AND TUBES 103 96 95 81 91 97 91 99 99 107 89 85 Tires, pneumatic 107 99 99 84 94 99 93 103 102 110 92 87 Inner tubes 75 68 65 57 68 80 76 75 75 82 67 67 TOBACCO PRODUCTS 127 136 150 152 139 143 148 140 119 141 135 132 140 Cigars 63 68 73 73 70 79 85 82 55 56 65 64 70 Cigarettes 175 188 212 215 192 193 200 189 168 204 188 183 195 Minerals—Total ._ _ 79 88 97 84 85 92 100 95 96 99 106 89 94 Bituminous coal 51 60 71 50 57 61 82 80 '83 88 98 70 71 Anthracite 72 71 85 51 36 65 62 50 69 75 99 40 65 Petroleum, crude 130 132 136 137 136 139 141 143 142 142 140 145 150 Iron ore 80 105 102 109 119 105 37 Zinc 78 73 76 75 75 79 78 82 86 89 82 90 95 Lead 57 62 56 57 57 56 70 70 70 63 64 60 69 Silver 49 50 46 62 59 68 74 73 68 81 100 99 i Includes also lead and zinc; see "Minerals." * Preliminary. ' 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, box board, mechanical wood pulp, chemical wood pulp, paper boxe s, and lumber, usually published in this table, are in process of revision. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

491 JUNE 1936 FEDERAL RESERVE BULLETIN 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 variation Without seasonal adjustment Without seasonal adjustment Industry and group 1936 1935 1936 1935 1936 1935 April March April April March April April March April Total 84.9 '84.2 '82.4 85.1 '84.1 '82.6 77.9 '76.3 70.8 IRON AND STEEL AND PRODUCTS* 77.9 76.1 71.1 79.1 77.1 72.2 73.9 59.4 Blast furnaces and steel works 78.1 •75.7 72.2 79.7 '77.4 73.7 79.2 '73.8 62.3 Cast-iron pipe 56.1 55.5 46.8 56.7 55.2 47.3 37.2 34.9 26.3 Cutlery and edge tools 75.3 76.5 77.6 77.9 79.2 80.3 64.8 '63.4 60.1 Hardware 54.8 '54.3 54.0 55.2 '55.1 54.4 52 A 50.5 46.3 Steam, hot-water heating apparatus, etc 59.5 57.7 49.7 60.1 58.4 50.2 43.8 '42.6 33.8 Stoves 102.0 98.8 94.7 104.9 100.1 97.4 85.5 '84.4 73.7 Structural metal work 65.3 62.3 56.0 64.5 60.9 55.3 54.7 '49.9 39.8 Tin cans, etc 95.4 96.9 87.9 95.8 93.9 88.3 94.3 94.5 85.4 Wirework... 145.9 142. 6 130.2 144.4 142. 2 128.9 146.7 140. 0 121.5 MACHINERY i 97.0 94.9 86.0 96.2 93.6 85.1 86.3 82.2 67.6 Agricultural implements 132.6 129.6 91.6 140.4 138.7 97.0 172.5 171.0 108.8 Electrical machinery, etc 75.3 72.3 70.9 75.3 72.3 70.9 68.6 63.7 58.4 Engines, turbines, etc 118.4 114.3 96.0 120.3 116.2 97.5 91.1 88.7 69.6 Foundry and machine-shop products.. 82.4 80.4 73.1 83.8 81.5 74.3 75.4 71.6 58.0 Machine tools 104.4 102.1 80.7 105.9 104.5 81.8 97.5 97.4 67.8 Radios and phonographs. 239.0 248.8 231.2 188.6 186.1 182.4 118.0 109.7 107.0 Textile machinery 70.3 69.7 65.3 70.8 71.0 65.8 62.5 64.6 51.6 TRANSPORTATION EQUIPMENT1 98.7 '96.3 99.1 104.3 100.3 104.8 110.3 '96.1 102.7 Automobiles _._ 108.0 106. 3 113.5 114.1 111.1 119.9 121.7 105. 4 117.1 Cars, electric and steam railroad. 57.6 57.3 54.7 62.2 56.8 59.1 70.0 62.0 65.1 Locomotives 30.9 '27.4 31.8 31.4 '27.6 32.3 15.1 12.9 15.0 Shipbuilding 93.7 '86.1 70.0 '90.7 74.6 95.6 '85.0 62.0 RAILROAD REPAIR SHOPS.. 59.4 '60.4 52.6 59.9 '60.1 52.9 60.6 '63.1 50.7 Electric railroads 66.0 65.8 65.6 66.0 65.8 65.6 62.5 63.6 60.4 Steam railroads 59.0 r60.0 51.6 59.4 '59.7 52.0 60.6 '63.2 50.1 NONFERROUS METALS AND PRODUCTS1. 87.6 '87.2 '82.4 88.7 '83.4 74.0 '73.9 '64.7 Brass, bronze, and copper 85.3 '84.6 80.4 86.8 '86.9 81.8 70.8 '69.9 64.1 Lighting equipment 77.1 '78.3 69.3 78.0 '79.1 70.1 74.7 72.5 59.0 Silverware and plated ware 65.4 66.1 71.6 65.5 66.6 71.7 48.7 52.2 51.2 Smelting and refining 86.7 '87.6 75.5 88.5 '89.5 77.1 63.5 '65.6 49.8 Stamped and enameled ware 109.7 105.1 106.1 112.8 109.1 109.1 101.1 '96.4 '88.0 LUMBER AND PRODUCTS1. 56.3 '55.9 52.4 55.6 '54.5 51.7 46.3 '44.6 37.5 Furniture 74.7 73.7 71.1 72.1 72.4 68.6 56.2 55.7 49.2 Lumber, mill work 48.2 47.6 39.4 48.5 47.0 39.7 41.2 39.2 27.7 Lumber, sawmills 37.7 '37.3 35.0 37.5 '36.1 34.8 29.7 '28.0 23.7 STONE, CLAY, AND GLASS PRODUCTS1 . 57.1 55.2 52.7 57.7 54.1 53.2 46.9 '43.5 39.3 Brick, tile, and terra cotta 36.4 '35.2 27.4 36.7 '32.5 27.6 25.8 '22.4 16.3 Cement.. _ _ _ .. 52.6 47.3 50.3 52.3 44.3 50.0 38.3 31.8 31.9 Glass 95.6 '94. 1 92.7 97.1 '94.9 94.2 92.1 '89.1 82.7 Pottery... 70.5 72.3 71.6 '71.2 73.4 56.9 '57.6 53.4 TEX A TI . L E F S a b A r N ic D s 1 PRODUCTS1 9 9 4 1 . . 9 3 9 9 4 1 . . 6 6 9 92 6 . . 7 0 9 9 6 1. . 9 1 9 9 7 3 . . 2 3 9 9 7 3 . . 2 3 8 7 0 8 . . 0 3 ' ' 8 80 4 . . 0 3 8 7 2 8 . . 4 0 Carpets and rugs.. 77.5 78.4 77.0 79.6 80.9 79. 1 69.2 70.4 74.2 Cotton goods 90.8 '89.6 91.5 90.4 '91.6 91.9 77.1 '77.8 74.0 Dyeing and finishing 108.8 107.3 111.8 111.5 111.9 114.6 96.0 95.7 95.7 Knit goods 112.8 113.0 112.2 114.9 114.9 114.3 110.5 112.5 110.3 Silk and rayon goods 63.9 63.0 70.0 64.8 64.7 71.0 53.5 53.5 59.6 B. W W e o a o r l i e n n g a a n p d p a w r o e r l s l ted goods.. 8 9 9 9 . . 2 1 '9 9 7 3 . . 4 1 9 8 9 8. . 4 2 1 8 0 7 1. . 7 8 10 9 1 3 . . 9 0 1 8 0 7 1 . . 0 8 6 78 7 . . 7 3 '8 7 7 1 . . 6 5 6 86 6 . . 4 5 Clothing, men's 96.1 '94.2 97.7 93.1 '96.1 94.7 67.8 '80.7 82.5 Clothing, women's 123.7 122.8 122.3 136.3 133.8 134.8 101.1 108.7 103.9 Millinery 61.4 63.0 63.4 67.4 70.8 69.6 63.0 76.2 70.0 Shirts and collars 109.7 105.5 105.6 108.4 105.5 104.3 105.9 104.7 104.4 LEATHER AND PRODUCTS . 87.0 86.9 92.2 86.4 89.0 91.5 69.9 75.5 79.1 Boots and shoes. _ 85.2 85.4 91.7 84.3 87.4 90.8 62.4 69.7 75.1 Leather 94.7 93.4 94.3 94.9 95.6 94.5 94.5 93.8 91.4 FOOD PRODUCTS 1 100.5 102.2 102. 4 94.1 92.0 '95.4 87.7 87.5 '85.9 Baking 115.3 115.2 113.6 113.5 112.9 111.8 100.4 100.9 95.5 Butter.. 72.4 73.6 71.8 71.0 68.0 70.4 56.5 55.7 54.7 Canning and preserving.. 92.: 108.8 103. 4 68.2 56.6 '76.5 78.8 70.8 '83.7 Confectionery 77.7 76.9 85.4 70.6 73.9 77.6 60.5 66.6 64.7 Flour 73.5 74.6 75.3 72.4 73.7 74.2 63.8 67.7 62.5 Ice cream __ 71.6 68.8 71.9 68.8 61.8 69.1 57.6 53.2 55.5 Slaughtering and meat packing.. 83.4 82.4 84.2 80.7 '80.5 81.5 73.6 '74.1 74.3 Sugar refining, cane. 82.4 80.4 84.4 81.8 79.6 83.8 73.9 75.8 76.2 ' Revised. 1 Includes current statistics for one or more industries not shown separately. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

492 FEDERAL RESERVE BULLETIN JUNE 1936 FACTORY EMPLOYMENT AND PAY ROLLS, BY INDUSTRIES—Continued [Adjusted to Census of Manufactures through 1931. 1923-25 average=100] Factory employment Factory pay rolls Adjust v e a d r i f a o t r io s n easonal Without seasonal adjustment Without seasonal adjustment Industry and group 1936 . 1935 1936 1935 1936 1935 April March April April March April April March April TOBACCO PRODUCTS 56.2 56.4 57.7 55.4 55.9 56.8 42.6 44.9 43 1 Chewing and smoking tobacco and snuff 67.2 63.6 70.8 65.2 66.0 68.7 64.4 66.2 64.9 Cigars and cigarettes. _ _ 54.8 55.4 56.0 54.1 54.6 55.3 39.8 42.2 40.3 PA*PER AND PRINTING 99.0 97.9 97.3 98.6 98.2 96.9 91.1 90. 5 84 6 Boxes, paper- 86.7 85.8 88.2 84.3 84.7 85.7 78.8 79.7 78.1 Paper and pulp . 110.3 109.6 109.8 110.3 109.6 109.8 96.2 94.9 87.3 Book and job printing 89.7 87.9 87.7 89.1 89.0 87.1 81.8 81.9 77. 1 Printing, newspapers and periodicals _ __ 103.2 102.4 99.1 103.5 102.6 99.4 98.5 97.4 90.5 CHEMICALS AND PETROLEUM PRODUCTS1 107.6 110.3 108.1 110.7 112.1 111.5 101.3 '102. 4 95.9 A. Chemical group, except petroleuml 107.2 110.7 108.0 111.0 113.2 112.3 101.2 '102. 2 95.6 Chemicals 108.3 106.9 106.3 109.0 '108.1 106.9 104.9 '103.0 96.2 Druggists' preparations 100.2 96.9 100.7 98.4 99.0 98.9 98.0 100.0 97.7 Explosives. _ 87.8 90.7 87.1 85.3 89.4 84.6 77.7 86.0 69.3 Fertilizers 74 4 109 8 83 7 138.0 141.4 155 3 123.9 123 6 119,9 Paints and varnishes 111.4 '107. 3 108.8 111.9 '108.1 109.2 100.7 95.9 91.9 Rayon and allied products __ 331.1 352.0 334.9 331.1 352.0 334.9 254.9 267.3 242.7 Soap— 95.7 96.0 101.4 96.8 96.4 102.7 93.6 95.0 97.0 B. Petroleum refining _ . 109.4 108. 6 108.3 109.4 '107. 5 108.3 101.7 '103.0 96.9 RUBBER PRODUCTS1 __ . 82.1 •73.7 '83.4 82.1 '72.7 '83.6 74.0 '63.0 71.2 Rubber boots and shoes 62.4 r60.9 ••55.3 59.8 '58.9 '52.9 52.0 '52.3 43.8 Rubber tires and inner tubes 67.0 '54.3 73.6 68.1 '53.2 74.9 63.2 '47.4 65.4 ' Revised. * Includes current statistics for one or more industries not shown separately. NOTE.—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 F. R. Board of Governors, see BULLETIN for June 1934, pp. 324-343, and December 1935, p. 888. Underlying figures are for pay-roll period ending nearest middle of month. April 1936 figures are preliminary, subject to revision. REVISED INDEXES OF FACTORY EMPLOYMENT AND PAY ROLLS [1923-25 average = 100] Factory employment Factory pay rolls Adjusted for seisonal variation Without seasonal adjustment Without seasonal adjustment 1935 1936 1935 1936 1935 1936 Dec. Jan. Feb. Mar. Dec. Jan. Feb. Mar. Dec. Jan. Feb. Mar. Total ... ... __ 85.6 84.8 83.8 84.2 84.6 82.9 83.1 84.1 76.4 72.7 72.7 76.3 Transportation equipment 111.0 103.1 96.7 96.3 103.3 101.8 99.1 100.3 102.2 94.8 85.3 96.1 Automobiles _ . .__ 128.0 117.4 108.7 106.3 118.1 116.3 112.0 111. 1 115.9 106.8 93.6 105.4 Lumber and Products 54.5 54.8 54.6 55.9 54.5 52.9 53.1 54.5 44.2 41.1 41.1 44.6 Lumber, sawmills . 35.8 36.0 35.8 37.3 35.1 34.4 34.3 36.1 25.9 25.2 24.4 28.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1936 FEDERAL RESERVE BULLETIN 493 CONSTRUCTION CONTRACTS AWARDED, BY TYPES OF CONSTRUCTION [Figures for 37 States east of the Rocky Mountains, as reported by the F. W. Dodge Corporation. Value of contracts in millions of dollars] Public works Total Residential Factories Commercial and public Educational All other Month utilities 1935 1936 1935 1936 1935 1936 1935 1936 1935 1936 1935 1936 1935 1936 January 99.8 204.8 22.4 37.4 7.1 9.0 10.8 15.5 44.4 76.9 3.7 39.5 11.4 26.5 February 75.0 142.1 16.6 31.2 7.8 13.4 9.2 12.6 27.8 48.3 5.8 21.1 7.9 15.5 March 122.9 199.0 32.2 '55.2 6.5 18.4 12.2 17.3 46.3 62.3 10.4 19.2 15.4 26.6 April 124.0 234.8 42.2 67.2 6.3 25.5 15.2 24.3 40.5 73.4 8.3 23.2 11.5 21.3 1^1 ay 126 7 44 9 9 8 13 9 31 4 9 0 17 7 June 148.0 49.8 9.5 15.0 39 1 17 7 16 8 July 159.3 48.4 14.6 15.8 53 9 9 2 17 4 August 168.6 40.5 10.6 17 3 69 5 8 7 21 9 September 167.4 41.8 6.0 13.6 76 1 4 3 25 6 October 200.6 55 1 12 0 16.6 86 3 9 2 21 3 November 188.1 39.7 8.9 12.8 80 3 24 7 21 7 December 264.1 45.1 9.9 12.0 94.5 62.6 _ _ _ _ 40.1 _ _ . Year 1,844. 5 478.8 108.9 164.5 690.2 173.5 228.7 CONSTRUCTION CONTRACTS AWARDED, BY COMMERCIAL FAILURES, BY DISTRICTS DISTRICTS [Figures reported by Dun & Bradstreet. Amounts in thousands of dollars] fFigures for 37 States east of the Rocky Mountains, as reported by the F. W. Dodge Corporation. Value of contracts in thousands of dollars] Number1 Liabilities1 1936 1935 Federal Reserve district Federal Reserve district 1936 1935 1936 1935 Apr. Mar. Apr. Apr. Mar. Apr. Apr. Mar. Apr. Boston 19,952 13, 031 8,523 S C A C K N P M R t h h l i e a t . i e c l i i n n w a v l c h L a s n n a e m a o d e g Y l t s a u a e a o o n o i p l n C s p r d o d k h i l t i i y s a 4 2 3 2 1 1 1 1 7 0 0 8 9 6 5 4 4 , , , , , , , , , 5 1 1 8 4 2 9 2 7 6 2 8 1 7 0 4 6 3 1 8 4 0 5 2 0 1 0 ' 4 1 1 1 1 1 1 3 2 0 4 7 7 8 3 0 7 , , , , , , , , , 2 1 5 7 0 5 2 7 2 0 3 2 3 0 5 7 3 7 1 6 0 7 7 5 3 9 9 2 2 1 1 4 4 7 4 9 8 1 4 , , , , , , , , 1 6 3 5 5 5 9 2 7 8 3 7 4 5 9 9 6 9 9 5 9 7 9 8 M A S B N R C P C t h i h o e l t . i c e l i n i w s a l h L c v a n t n m a o e o d e Y t g l n u a a e o a o o . i p l n n . s p . r o d d k h l . _ . i i _ . _ s a . __ _ _ . 2 1 2 2 8 4 3 7 0 6 2 5 5 0 7 7 3 4 1 9 2 1 4 4 2 8 2 1 9 6 5 1 4 3 2 9 5 6 5 0 3 1 1 4 4 3 4 8 3 2 1 2 2 5 9 9 0 8 9 5 0 4 1 1 1 1 , , , , , 7 6 4 6 5 4 2 2 4 3 2 5 8 4 9 2 7 3 4 5 2 8 2 6 1 6 7 6 1 1 , , , 8 0 8 3 4 5 9 4 5 7 3 5 9 1 2 1 6 0 7 5 0 5 1 9 1 1 4 2 5 1 1 1 , , , , , 0 3 0 4 4 4 5 2 2 3 6 6 2 0 1 7 9 9 7 8 1 8 6 1 5 7 5 Dallas 17, 562 14, 501 4,231 Kansas City. 35 47 40 226 1,709 704 Total (11 districts) 234,806 198, 978 124, 020 D Sa a n ll a F s rancisco 9 1 7 7 12 2 9 5 1 3 5 2 4 9 5 4 2 0 0 1,3 2 7 1 0 9 2,5 4 4 0 4 3 Total 830 946 1,083 14,157 16, 271 16, 529 i New series, excluding failures of real estate and insurance brokers, holding and finance companies, shipping agents, tourist companies, and transportation terminals which were included in figures published in this table prior to 1936. Data by months for 1934 and 1935 available at the Division of Research and Statistics. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

494 FEDERAL RESERVE BULLETI N JUNE 1936 MERCHANDISE EXPORTS AND IMPORTS [In millions of dollars] Merchandise exports i Merchandise imports» Excess of exports Month 1932 1933 1934 1935 1936 1932 1933 1934 1935 1936 1932 1933 1934 1935 1936 January 150 121 172 176 r199 136 96 136 167 187 15 25 37 9 11 February __ 154 102 163 163 182 131 84 133 152 193 23 18 30 11 -11 March . 155 108 191 185 195 131 95 158 177 199 24 13 33 8 -4 April . 135 105 179 164 P 193 127 88 147 171 P 202 9 17 33 —6 p—9 May 132 114 160 165 112 107 155 171 20 7 6 —5 June . __ ___ 114 120 171 170 110 122 136 157 4 —2 34 13 July _ 107 144 162 173 79 143 127 177 27 1 34 —3 August 109 131 172 172 91 155 120 169 17 —23 52 3 September 132 160 191 199 98 147 132 162 34 13 60 37 October _ . _ 153 193 206 221 105 151 130 189 48 42 77 32 November 139 184 195 r 270 104 129 151 169 34 56 44 100 December _ 132 193 171 223 97 134 132 187 35 59 38 36 Year . 1,611 1,675 2,133 '2,283 1,323 1,450 1,655 2,048 288 225 478 235 p Preliminary. r Revised. i Including both domestic and foreign merchandise. i 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, and for March 1932, p. 160. FREIGHT-CAR LOADINGS, BY CLASSES DEPARTMENT STORES—SALES, STOCKS [Index numbers; 1923-25 average-100] [Index numbers based on value figures; 1923-25 average—100] 1935 1936 Index of sales i Index o m f s o t n oc th k ) s (end of Apr. Dec. Jan. Feb. Mar. Apr. Adjusted Without Adjusted Without Month for seasonal seasonal for seasonal seasonal Adjusted for seasonal variation variation adjustment variation adjustment Total 61 71 70 70 66 1935 1936 1935 1936 1935 1936 1935 1936 Coal 63 74 78 97 63 Coke 49 68 73 79 55 Grain and grain products. _ 74 62 70 68 85 January. __ 79 58 Livestock 41 39 38 33 41 February.. 62 Forest products 33 45 42 36 40 March 67 Ore 49 58 62 62 64 Miscellaneous 67 86 79 74 77 April.. 81 68 Merchandise l 63 66 64 62 62 May.. June._ Without seasonal adjustment July ..__ 61 57 August September 67 Total . 59 62 63 65 62 Coal 53 79 88 106 60 October 77 Coke 46 73 80 89 56 November. 91 Grain and grain products __ 57 61 67 66 72 December.. 145 Livestock 38 39 39 31 35 Forest products 35 37 38 37 42 Year.. 79 64 Ore 25 14 15 15 15 Miscellaneous 69 67 63 63 73 Merchandise ! 65 62 60 60 63 p Preliminary. * Based throughout on figures of daily average sales—with allowance for changes from month to month in number of Saturdays and Suni In less-than-carload lots. days and for 6 holidays: New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas. Adjustment for Based on daily average loadings. Source of basic data: Association of seasonal variation makes allowance in March and April for the effects American Railroads. upon sales of changes in the date of Easter. Back figures.—See BULLETIN for April 1935, pp. 254-255, and Annual Back figures—See BULLETIN for February 1931, pp. 108-109. Report for 1934 (table 95). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

495 JUNE 1936 FEDERAL RESERVE BULLETIN WHOLESALE PRICES, BY GROUPS OF COMMODITIES [Index of Bureau of Labor Statistics. 1926=100] Other commodities Year, month, or week m c t A o i o e m l d s l i - - F p u r a c o r t d m s - Foods Total H p l i r e d o a e d t s h u e a c r n ts d p T ro e d x u ti c le ts m F li u a g t e h e l r t i a i n a n l g d s a p n M r d o e d m t u a e c l t s t a s lm B a u t i e l r d i i a n l g s c C a d l h s r e u a m g n s i d - f n H u g r o n g u i o s s o h e d - - s l M an i e sc o e u l s - 1929 95.3 104.9 99.9 91.6 109.1 90.4 83.0 100.5 95.4 94.2 94.3 82.6 1930 86.4 88.3 90.5 85.2 100.0 80.3 78 5 92.1 89.9 89.1 92.7 77.7 1931 73.0 64.8 74.6 75.0 86.1 66.3 67.5 84.5 79.2 79.3 84.9 69.8 1932 . 64.8 48.2 61.0 70.2 72.9 54.9 70.3 80.2 71.4 73.5 75.1 64.4 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 1934 . . 74.9 65.3 70.5 78.4 86.6 72.9 73.3 86.9 86.2 75.9 81.5 69.7 1935 80.0 78.8 83.7 77.9 89.6 70.9 73.5 86.4 85.3 80.5 80.6 68.3 1935—March 79.4 78.3 81.9 77.3 85.4 69.4 73.0 85.7 84.9 81.5 80.7 69.2 April 80.1 80.4 84.5 77.2 86.3 69.2 72.8 85.9 84.6 81.0 80.7 68.7 May 80.2 80.6 84.1 77.6 88.3 69.4 73.1 86.6 84.8 81.2 80.6 68.7 June 79.8 78.3 82.8 78.0 88.9 70.1 74.2 86.9 85.3 80.7 80.5 68.4 July 79.4 77.1 82.1 78.0 89.3 70.2 74.7 86.4 85.2 78.7 80.4 67.7 August _ ._ 80.5 79.3 84.9 77.9 89.6 70.9 74.1 86.6 85.4 78.6 80.5 67.3 September 80.7 79.5 86.1 77.8 90.9 71.8 73.0 86.6 85.9 80.2 80.5 67.1 October 80.5 78.2 85.0 78.3 93.6 72.9 73.4 86.5 86.1 81.1 80.6 67.5 November 80.6 77.5 85.1 78.8 95.0 73.4 74.5 86.9 85.8 81.2 81.0 67.4 December 80.9 78.3 85.7 78.7 95.4 73.2 74.6 86.8 85.5 80.6 81.0 67.5 1936—January 80.6 78.2 83.5 78.8 97.1 71.7 75.1 86.7 85.7 80.5 81.4 67.8 February 80.6 79.5 83.2 79.0 96.1 71.0 76.1 86.7 85.5 80.1 81.5 68.1 March 79.6 76.5 80.1 78.9 94.9 70.8 76.2 86.6 85.3 79.3 81.4 68.3 April 79.7 76.9 80.2 78.9 94.6 70.2 76.7 86.6 85.7 ^8.5 81.5 68.6 Week ending— 1936—Jan. 4 80.9 79.3 85.8 78.8 96.6 72.9 75.5 85.9 85.2 2$0 1 82.2 67.5 Jan.11 80.5 78.3 84.6 78.8 97.7 72.4 75.4 86.0 85.2 i$0.2 82.4 67.8 Jan. 18 80.2 78.1 82.9 78.9 97.8 71.0 76.4 86.0 85.2 $0 3 82.2 67.8 Jan. 25 80.2 78.1 82.7 79.0 97.7 70.8 77.0 86.1 85.3 i$0.6 82.3 67.8 Feb. 1 80.5 79.5 83.2 79.1 97.5 70 9 77 1 86 0 85.4 i$0.5 82.3 67.9 Feb. 8 80.4 79.4 82.9 79.1 97.1 70.7 77.2 86.0 85.2 $0.2 82.8 67.9 Feb. 15 80.6 79.9 84.0 79.0 97.0 70.6 76.9 86.0 85.3 79.9 82.8 68.0 Feb. 22 80.8 81.6 84.3 79.0 96.5 70.5 77.2 85.9 85.2 79.9 82.8 68.0 Feb. 29 ._ 79.9 78.4 82.2 79.1 96.2 70.3 77.4 85.9 85.2 79.7 82.8 68.2 Mar. 7 79.7 77.7 81.4 79.0 95.7 70.4 77.3 86.0 85.0 79.4 82.7 68.2 Mar. 14 79.2 76.4 79.7 79.0 95.5 70.4 77.2 85.9 85.1 79.0 82.6 68.2 Mar. 21 79.3 76.7 79.9 78.8 95.3 70.4 76 7 85 9 85.1 79.0 82.6 68.2 Mar. 28 79.3 76.8 79.7 78.8 95.3 70.4 76.7 85.7 85.2 79.1 82.7 68.2 Apr. 4 79.2 76.3 79.7 78.8 95.1 70.1 76.8 85.9 85.3 79.1 82.7 68.2 Apr. 11 _ . 79.5 76.9 80.2 79.0 95.1 69.9 77.6 85.9 85.4 79.0 82.8 68.3 Apr. 18 79.7 77.4 81.1 79.1 95.2 69 9 77 5 86 0 85.4 78.9 82.8 68.6 Apr. 25 79.6 77.8 80.4 79.0 95.2 69.7 77.4 86.0 85.5 78.2 82.8 68.6 May 2 79.1 77.1 79.1 78.9 94.9 69.7 77.3 86.0 85.5 77.8 82.8 68.6 May 9 78.6 76.2 78.0 78.9 94.9 69. 6 77.2 86.0 85.6 77.5 82.8 68.4 May 16 78.1 74.4 77.4 78.8 94.8 69.5 76.9 85.7 85.5 77.3 82.8 69.2 May 23 78.2 75.0 77.5 78.7 94.3 69.2 76.8 85.7 85.6 77.3 82.8 69.1 May 30 78.4 75.9 78.4 78.8 94.3 69.2 76.8 85.7 85.7 77.4 82.9 69.1 1935 1936 1935 1936 Subgroups Subgroups Apr. Jan. Feb. Mar. Apr. Apr. Jan. Feb. Mar. Apr. FARM PRODUCTS: METALS AND METAL PRODUCTS: Grains 87.9 78.9 78.3 75.6 73.9 Agricultural imnlp.mp.nts 93.6 94.6 94.9 94.2 94.2 Livestock and poultry 85.9 89.1 90.3 88.3 88.3 Iron and steel- 86.0 87.1 86.9 86.3 86.3 Other farm products 74.5 70.8 72.7 69.1 70.4 Motor vehicles 93.6 93.6 93.6 94.0 94.0 FOODS: Nonferrous metals . _ 68.2 69.7 69.7 69.9 70.4 Butter, cheese, and nnilk 84.9 84.2 85.7 80.3 78.8 BUILDING MATERIALS: Cereal products ... . 93.3 '92. 1 85.8 84.2 Brick and tile 89.7 88.4 88.4 88.9 89.0 Fruits and vegetables 67.3 62.2 62.4 65 1 67.8 Cement 94 9 95.5 95.5 95.5 95.5 Meats 94 3 94 9 92 1 89 7 91 0 Lumber 79 9 82 2 82 3 82 6 83.2 Other foods 76.2 75.5 78.1 72.4 72.4 Paint materials 79.2 79.6 79.5 79.2 79.3 HIDES AND LEATHER PRODUCTS: Plumbing and heating 67.1 71.7 73.8 73.8 73.8 Boots and shoes 97.2 100.5 100. 5 ]00 4 100 3 Structural steel 92 0 92.0 92.0 92.0 92.0 Hides and skins 71.2 100. 5 96.7 91.0 90.1 Other building materials 89.4 90.2 89.5 88.5 89.1 Leather 74 9 87.3 86 0 85 0 84 5 CHEMICALS AND DRUGS* Other leather products 84.6 95.3 95.4 95.4 95.4 Chemicals 87.2 87.6 87.0 85.9 85.5 TEXTILE PRODUCTS: Drugs and Pharmaceuticals 73.8 74.0 73.2 73.0 73.2 Clothing 78.5 80.8 80.7 80 7 80 8 Fertilizer materials 66 0 64.4 64. 5 64 8 64.6 Cotton goods 81.8 80.4 78.1 77.1 76.2 Mixed fertilizers 72 9 68.8 68.8 68.3 64.5 Knit goods 61.6 61.8 62.0 62.1 62.0 HOUSEFURNISHING GOODS: Silk and rayon 27.6 33.5 31.6 30.9 30.1 Furnishings 84 2 84.8 85.0 84.9 85.0 Woolen and worsted goods.._ 73.1 81.4 82.8 83.8 82.2 Furniture 77.1 77.9 77.9 77.9 78.0 Other textile products 67.5 67.8 67.2 67.2 67.5 MISCELLANEOUS: FUEL AND LIGHTING MATERIALS: Auto tires and tubes ... 46.3 45.0 45.0 45.0 45.0 Anthracite 75.5 82 3 82 6 82 5 80 0 Cattle feed 104 9 68 6 68 1 67 9 74.0 Bituminous coal 95.4 98.7 100.1 99.4 96.8 Paper and pulp 80 4 79.8 79.9 80.3 80.5 Coke 88 7 92 7 93 7 93 7 93 7 Rubber crude- 23 7 29 8 32 0 32 9 33 0 Electricity . 87.8 83.1 86.2 84.4 Other miscellaneous 79.0 80.4 80.6 80.6 80.6 Gas 88 0 83 2 82.1 84.4 Petroleum products. 51.0 54.4 55.7 56.0 ~57.~9 r Revised. Back figures.—For monthly and annual indexes of groups, see Annual Report for 1934 (table 100); indexes of subgroups available at Bureau of Labor Statistics. For weekly indexes covering 1934, see Annual Report for 1934 (table 101). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

496 FEDERAL RESERVE BULLETIN JUNE 1936 INTERNATIONAL FINANCIAL STATISTICS GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS [In millions of dollars] Europe Total i United End of month (50 coun- Canada tries) States c T o o u t n a t l r i ( e 2 s 7 ) Austria Belgium Bulgaria s C lo z v ec a h k o ia - Denmark England France m G a e n r y - 1935—April 21,861 8,710 187 11, 279 518 112 1,587 5,366 May 21,473 8,858 189 10, 714 605 112 1,587 4,759 33 June 21,678 9,116 188 10, 670 634 113 1,588 4,708 35 July 21, 675 9,144 188 10,636 624 113 1,588 4,726 38 August 21,759 9,203 193 10,664 612 113 1,593 4, 756 38 September. 21, 926 9,368 186 10, 678 604 113 1,595 4,770 38 October 22,313 9,693 186 10, 714 609 113 1,604 4,773 35 November. 22, 225 9,920 188 10, 394 615 113 1,628 4,388 36 December.. 22,391 10,125 189 10, 348 611 112 1,648 4,395 1936—January.... 22,399 10,182 186 10, 296 600 112 1,652 4,324 31 February. _. p 22,465 10,167 186 10, 358 593 112 1,653 4,362 29 March p 22, 514 10,184 184 10, 379 586 113 1,653 4,348 29 April 10, 225 187 581 113 1,670 4,106 28 May 10, 401 188 610 1,701 3,781 Europe—Continued End of month Greece Hungary Italy N la e n th d e s r- Norway! Poland Po g r a t l u- Ru n m ia a- Spain Sweden Sw la i n tz d er- u. R s. . s 3 . Y sl u av g i o a - 6 c t o o ri u t e h n s e - r 1935—April 519 439 61 97 106 741 160 446 748 56 May 519 440 66 97 106 741 161 390 748 57 June. _. 498 427 75 97 107 741 161 , 391 748 57 July 468 380 75 97 107 741 162 ! 421 748 57 August 419 402 84 97 108 741 162; 446 748 59 September 379 365 84 89 108 734 165 448 839 62 October 2 351 401 84 86 68 108 734 174 453 839 62 November. 351 427 84 84 109 735 180 455 839 63 December. 2 270 438 84 84 109 735 185 I 454 63 1936—January... 270 455 109 735 194 j 454 63 February.. 270 463 110 735 200 i 472 65 March 270 486 110 726 206 ! 493 67 April 270 483 111 726 209 ! 495 p 67 May 270 465 Latin America Asia and Oceania Africa End of month c T t o r ( o u i 1 e t n 0 a s - ) l g t A i e n r n a - - Chile l C o b m o ia - - M ic e o x- Peru g U u r a u y - c o t o r t u i 4 h e n e s - r c T t o r o ( u ie 7 t n a s - ) l India Japan Java N l Z a e e n a w d - T k u ey r- o tr t i 2 h e e s r T c t o o r ( i t u e 4 a n s - l ) F t A S f o r u i t c h a c o tr o t i 2 h u e e n s r - 1935—April 597 403 20 82 23 801 275 400 286 55 214 17 May 616 420 20 82 25 800 275 403 295 55 223 17 June— 611 420 20 76 26 802 275 407 291 55 220 17 July 609 420 20 74 26 797 275 410 301 55 230 17 August 611 420 20 74 27 798 275 413 290 55 219 17 September _ 613 420 20 74 28 797 275 416 284 55 212 17 October 636 441 20 74 30 800 275 418 284 55 212 17 November. _ 636 441 20 74 29 803 275 422 284 55 212 17 December.. 639 444 20 74 30 807 275 425 284 55 212 17 1936—January 444 20 74 30 804 275 428 293 55 221 17 February...P641 444 P20 74 30 810 275 431 303 55 231 17 March P636 438 P20 P74 P31 815 275 433 316 55 244 17 April P635 P20 P74 P31 P818 275 435 P261 55 189 P 17 p Preliminary. 1 See notes under Italy, U. S. S. R., and Mexico. 2 Bank of Italy suspended regular publication of its statement after Oct. 20, 1935. Figure as of that date is given for October and November 1935. The figure for December and subsequent months is that published in the Annual Report of the Bank of Italy for December 31, 1935. 3 Figures for March 1935, or September 1935, carried forward for subsequent months for which no figures have been reported. 4 Figure for March 1935 carried forward for subsequent months for which no figures have been reported. NOTE.—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 full description of this table, see BULLETIN for May 1932, pp. 311-318, June 1933, pp. 368-372; December 1934, p. 801; and November 1935, p. 758. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

497 JUNE 1936 FEDERAL RESERVE BULLETIN GOLD PRODUCTION [In thousands of dollars] Production reported monthly Estimated Year or month p w ro o d r u ld c- Africa North and South America Far East tion Total A So fr u ic th a d R e h s o ia - A W fr e ic st a B C e o l n g g ia o n Canada U S n ta i t t e e s d Mexico Co b l i o a m- Chile Au li s a tra- Japan India $1=25-8/10 grains of gold 9/10 fine; i. e., an ounce of fine gold=$20.67 1929.. 404,969 359,347 215, 242 11,607 4,297 2,390 39,862 45,835 13, 463 2,823 683 8,712 6,927 7,508 1930. 430, 725 373,154 221, 526 11,476 4,995 2,699 43, 454 47,123 13,813 3,281 428 9,553 8,021 6,785 1931.. 461, 592 394,399 224,863 11,193 5,524 3,224 55,687 49, 524 12, 866 4,016 442 12,134 8,109 6,815 1932.. 499, 241 421, 656 238, 931 12,000 5,992 3,642 62, 933 50,626 12, 070 5,132 788 14,563 8,198 6,782 1933.. 524, 390 420,093 227,673 13,335 6,623 3,631 60,968 52,842 13,169 6,165 3,009 16, 790 8,968 6,919 $1=15-5/21 grains of gold 9/10 fine; i. e., an ounce of fine gold=$35 1933.. 887,845 711, 260 385, 474 22, 578 11,214 6,148 103,224 89,467 22, 297 10,438 5,094 28, 428 15,183 1934.. 963,369 722,970 366, 795 24, 264 12,153 6,549 104,023 107,632 23,135 12,045 8,350 30, 447 16, 354 1935.. PI, 042, 271 P769, 471 377,090 25,477 13, 625 7,159 114, 816 124,116 P23, 866 11,517 9,251 31,117 r 20,043 1935—April 76, 511 60,028 30,301 2,052 1,106 594 8,599 8,573 1,750 1,015 895 2,637 1,568 938 May 82, 715 62,932 32,072 2,177 1,162 627 9,423 9,623 1,048 945 651 2,533 1,717 954 June 86, 485 63,002 31,089 2,101 1,095 588 10,002 9,588 1,166 857 1,113 2,623 1,844 937 July. _ 94,913 67,030 32, 458 2,150 1,095 615 9,988 11, 793 2,181 1,001 546 2,635 1,610 958 August 96, 062 67,178 32, 667 2,155 1,152 631 10,303 10, 603 2,532 1,125 536 2,844 1,669 961 September. 96,949 68, 066 31, 472 2,009 1,160 590 9,813 12,108 3,287 978 1,088 2,939 1,674 949 October.... 100, 596 69,013 32, 596 2,403 1,249 614 10, 560 12, 703 1,671 1,035 506 2,923 1,779 974 November. 94,449 65,866 31,671 2,205 1,181 614 10, 261 10,883 1,115 981 937 3,279 1, 785 953 December.. P 90,499 P 70,316 31,829 2,272 1,174 542 10, 756 13,158 P 2, 590 834 905 3,423 1,866 966 1936—January P 83,362 p 65, 779 32, 275 2,320 1,221 592 9,714 10,195 P 2,100 1,335 770 2,690 1,595 971 February.. P 82,464 P 64, 681 31, 290 2,201 1,164 574 9,325 9,650 P 2,835 1,159 918 2,801 1,843 920 March P 86, 423 P 67, 539 32, 709 2,359 1,326 P574 10,469 10,969 P 1,645 1,018 P 918 2,882 p 1, 750 p 920 April p 86, 571 P 67, 387 31, 990 P 2, 310 P 1, 470 P574 P 10,150 11,062 P 2, 205 P 1,155 P 918 P 2,882 P 1, 750 P 920 p Preliminary. ' Revised. 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, November 1934, p. 737, February 1936, p. 107, and April 1936, p. 284. For annual figures of world production back to 1873 see Annual Report of Director of the Mint for 1935, pp. 107-108. Figures for Canada beginning January 1935 are subject to official revision. GOLD MOVEMENTS [In thousands of dollars at approximately $35 a fine ounce] United States Total Net imports from or net exports (—) to: Year or month net i e m o x r p p n o o e r r t t t s s England France Belgium N l e a t n h d e s r- Sw la i n t d zer- Canada Mexico Co b l i o a m- B I r n i d ti i s a h C H a h o n i n d n g a c o o A th u l e l n r - Kong tries 1934 i 1,131,994 499,870 260, 223 8,902 94,348 12,402 86, 829 30, 270 16,944 76,820 16, 452 28, 935 1935 1, 739,019 315, 727 934, 243 3 227,185 968 95,171 13, 667. 10,899 75, 268 9,431 56, 453 1935—February. 122, 772 63, 424 45, 766 1,466 339 5,346 729 2,112 522 359 2,711 March 13, 003 -187 56 4,449 833 1,407 2,139 334 3,972 April 148, 608 1,481 32, 510 94, 890 10, 968 923 2 2,924 313 4,596 May 140, 016 1,689 124,052 3 885 3,053 948 1,752 167 507 3,962 June... 230, 373 938 194, 298 22,061 8,734 679 448 3,215 July 16 229 31 975 5 770 722 1 750 28 438 6 515 August 45, 983 5 40 28, 277 5,398 753 6,671 1,127 3,711 September __ 156,719 37,114 40,423 37,811 15,069 699 1 19,821 640 5,141 October 315, 347 109, 954 156, 977 3 17, 605 629 9. 368 762 1,746 12, 359 1,125 4,817 November 210,567 7.101 180,141 2,676 5 865 880 28 8,913 1,007 3 956 December ... . 190,010 8,600 145,388 4,727 9,060 748 11,108 1,605 8,774 1936—January _ 45, 643 5,786 3,514 1 10, 745 764 1,743 11, 744 1,176 10,170 February -16,635 -2,890 -17,180 -3, 421 273 659 740 5,185 March. _ 5,480 -1,792 13 —343 • 1, 677 772 5,154 April 28,055 1,493 1,564 11, 232 713 1,742 5,106 385 5,819 May 169, 952 4,003 133,157 8,751 1, 695 4,322 2,100 9,720 847 5,357 1 Differs from official customhouse figures in which imports and exports for January 1934 are valued at approximately $20.67 a fine ounce Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

498 FEDERAL RESERVE BULLETIN JUNE 1936 GOLD MOVEMENTS—Continued [In thousands of dollars at approximately $35 a fine ounce] England Net imports from or net exports (—) to: Total Year or month n p e o t r i t m s - South e o x ( r p ) n or e 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 el m - N l e a t n h d e s r- A So m ic u a e t r h - Canada B I r n i d ti i s a h S S m t e e r t a t n l i t e t s s - Au li s a tra- A d W R f e r h s e i o i c s a - a t , , c o t o A r th i u e l e n l s r - Africa 1934 716,269 -497,166 348,190 121,017 -13,585 32, 575 17, 568 26, 316 206,711 4,1 41, 790 335, 253 92, 737 1935 369,747 -435, 502 142,137 -4, 726 -17,476 10,796 8,832 16, 565 181, 627 3,198 37, 981 404, 295 22,020 1934—December. 27,215 -22,489 1,769 -1,087 310 241 17,882 128 4,126 23, 469 2,797 1935—January... -4, 279 -79, 628 4, 270 36 -349 8,780 381 24,046 12 4,066 37, 231 -3,124 February,. -36, 566 -74,127 -17,739 28 -951 2,145 2,057 19,093 88 3,067 18, 669 11,105 March 66, 557 66 26, 612 53 -1,992 51 1,195 2,970 15,457 296 2, 685 12, 661 6,503 April...... 36, 529 -20, 533 -33,348 266 -1,013 33, 237 152 424 16, 249 693 1,920 17, 658 20, 823 May _ 146, 289 -3, 247 69,128 209 -1,962 5,780 410 2,696 2,962 484 2,838 55, 847 11,143 June 118,067 -18,547 86, 926 -943 -11,601 -593 292 3,570 7,159 429 1,969 42, 473 6,933 July .- 16, 289 -1,141 -5, 719 -4, 416 118 -11,888 261 2,831 5,663 405 5,375 33, 532 -8, 731 August 39,016 -12,871 -5, 697 -26 82 1,642 287 449 26,102 420 4,148 35, 512 -11,032 September. -36,086 -81,032 -5, 663 23 2 -36 322 25,301 70 3,662 29,949 -8, 683 October. __ -36,158 -87,929 -2, 739 68 217 -1,136 2,535 28 11,900 134 3,414 44, 995 -7,644 November. 18, 286 -33, 744 25,198 50 -20, 204 461 1,798 12,857 56 2,842 33, 325 -4, 353 December. 40, 811 -22,075 910 114 -27 480 1, 798 14,838 54 1,995 42,442 7,265 1936—January.._ 41,974 -12,059 3,202 78 94 -591 311 11,035 56 1,889 39,852 1,893 February.. 38, 649 1,136 -3, 253 173 33 -7, 569 138 5,958 11, r 2,037 26, 454 1,792 March 47, 666 3,440 6,738 92 99 -13,354 430 4,090 10, 896 2,574 31,033 1, 558 April 77,137 -9, 465 12, 710 4,295 -1,383 -1,409 145 899 9,413 3,329 55,108 3,409 May? 70, 827 -10, 226 26,026 1,915 -17,433 1,946 394 1, 566 11,151 64 610 52, 636 2,179 France Year or month Total net Net imports from or net exports (—) to: imports or po n r e t t s e ( x - - ) U S n ta i t t e e s d England m G a e n r y - Belgium Italy N la e n th d e s r- Poland A So fr u ic th a Sw la i n tz d er- c A o l u l n o t t r h ie e s r 1934 -408,961 -242,363 -351, 729 31,036 -17, ( 91,021 74,995 1,371 746 23, 648 -17, 276 1935 -817,309 -909, 665 -120,053 -13,592 -186,937 195, 369 21,183 7,227 10, 241 176, 420 2,493 1935—January.._ 7,796 -15,376 -2, 931 115 -994 25, 755 -206 1,231 300 February.. -32,479 -50, 314 8,670 1 -2,497 249 -6 11, 975 -629 March 19,118 648 14, 676 3 -3, 851 -201 -12 7,r~~ -137 April 99, 395 -28, 566 38,332 -474 -26, 395 3,907 1,995 111, 292 -1,379 May -195,876 -77,803 -53, 283 -594 -109,195 -406 -885 2 44, 621 1,667 June -393, 551 -223,070 -110,834 -190 -56, 265 620 -1,101 391 -3, 431 321 July -12,206 414 -13,150 — 1 -45 2,093 -650 -180 1,295 -1,981 August 50,770 14 4,905 -1,990 -1,148 27,417 25, 759 -482 1 -3,418 -290 September. 26,482 -23, 688 8,811 -700 27, 224 5,561 -132 -917 9,482 236 606 October.... -68,693 -157,153 -72 -9,178 4,597 89,062 5,221 -898 -1,172 900 November. -246, 615 -258, 554 -15,060 11 -8, 235 35,433 -11,245 7,539 1,100 2,397 December. -71,450 -76, 217 -117 -595 -10,133 9,834 357 4,702 719 1936—January.... 40,393 -890 -4,695 2,636 -40 -789 -127 8,110 -411 February.. 23,375 2,364 -2, 740 -221 -5 18, 299 -43 -330 6,992 -940 March P__. 13,923 12, 209 -5,915 2,037 1,495 -8,138 -174 3,619 18,791 April P -57,613 -6, 234 -12,241 -1 -13,165 -27, 604 -175 1,060 748 p Preliminary. i $9,079,000 imported by France from Spain in March 1936. NOTE.—-Great Britain.—In some oases 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

499 JUNE 1936 FEDERAL RESERVE BULLETIN GOLD MOVEMENTS—Continued [In thousands of dollars at approximately $35 a fine ounce] Germany Netherlands Total Net imports from or net exports (—) to: Total Net imports from or net exports (—) to: Year or month net net im e o x r p p n o o e r r t t t s s England France N l e a t n h d e s r- e S r w la i n tz d - S U . .S R . . c o o A th u l e n l r - i e m o x r p p n o o e r r t t t s s U S n ta i t t e e s d E la n n g d - France Ger- g B iu el m - e S r w la i n tz d - c o o A th u l e n l r tries () tries 1934 -90, 920 -109, 386 -42, 907 -28,114 163 85, 390 3,934 -122, 664 -46,040 -31,038 -78, 610 25, 716 9,285 -4, 784 2,608 1935 42,969 5,180 13, 225 7,394 6,376 905 -198, 549 -221, 245 18, 397-41, 260 -5,142 48,004 -1,257 3,956 1935—Jan.. 28: 67 4 83 -23 12 -18,300 -15, 605 -3, 221 110 -161 27 617 Feb.. 295 -49 5 75 46 218 -2, r -2,495 -352 64 77 -159 -197 163 Mar. 11: -19 6 -107 -9 241 510 37 -1,299 617 -93 1,066 -136 319 April. 735 -50 745 87 -162 44 71 -120, 492 -97, 632 -20, 890 -20, 966 -210 20,081 -862 -15 May. 6,666 -206 418 237 26 1,100 91 -5,080 -2,810 -1,562 277 162 -289 71 -929 June- 2,876 1,057 275 1,014 12 517 -14,797 -19, 259 1,375 667 -862 3,379 113 -210 July. 9,525 4,504 4 810 4,113 94 -26,102 -29, 215 15, 702 -21, 909 -462 9,563 -8 227 Aug.. 4,769 33 3,972 693 17 54 -4, 514 -152 -9, 436 -86 2,900 -23 2,283 Sept. 4,355 A 142 480 4,014 -276 -37, 290 -40, 868 2,861 249 -160 133 9 488 Oct.. 10, 566 -49 7,058 2,532 1,116 -93 -13,080 -10,373 514 -1,339 -2,046 275 -114 2 Nov. 780 -17 5 680 67 45 38,746 -3,026 20,084 10,564 -239 11, 248 -86 199 Dec. 2,004 -87 591 810 671 4,749 5,334 -149 -561 -52 183 1936—Jan.. -2, 584 -2, 510 -189 77 131 16, 967 1,761 170 192 14, 291 -11 564 Feb.. -1,307 45 -2,054 647 63 10, 425 3,435 7,664 -40 -339 -3 -474 181 Mar. -258 -60 -19 -322 25 118 35,806 574 12,842 -312 13, 693 -47 569 April -1,201 -4,343 3 2,932 22 186 31,083 1,384 31, 428 -1, 568 73 -66 -166 Switzerland British India Y m e o a n r t o h r im T n p o e o t t a r l ts Net imports from or net exports (—) to: im T n p o e o t t a r l ts Net e im xp p o o r r ts ts ( f — rom ) t o o r : net G d p u r o o c ld - - Change in: e o x r ( p ) n or e t t s U S n ta i t t e e s d E la n n g d - France g B iu e m l- Italy N la e e n r t d - h s - c o t o A r th i u e l e n l s r - e o x r ( p ) n o e rt t s U S n ta i t t e e s d E la n n g d - c o t o A r th i u e l e n l s r - I t n i i d o n n ia s In e R r i d n v e i - e a s 2 P i I n h r n g i o v d s l d a i i a - t n e ' 1934. ... -46, 065 -12,784 -45,955 -29, 235 18,397 19, 431 2,580 1,500 -230, 720 -82,183 -144,185 -4,352 11,222 173 -219, 671 1935.__. -230, 788 647 -54, 858 -181,725 -13, 940 25, 542 342-6,795 -161,872 -17,364 -145, 541 n, 032 11,393 -150,472 1935—Jan -4,125 -17 -216 -4, 344 472 -218 -16,334 -1,249 -15,293 208 946 -15,386 Feb -15,025 -51 -2,108 -16,117 225 -90 428 -17, 746 -2,367 -15,108 -271 903 -16,844 Mar -17,830 5 -6, i -16,148 415 4, 734 -202 207 -18,439 -18,585 '146 955 -17,479 April -139, 633 324 -31,619 -107,021 7 2,110 1,041-4, 475 -3, 675 -3, 831 155 938 -2, 737 May _ -63, 229 -17,878 -38, 514 -5, 972 303 -409 -760 -6, 604 -6, 558 653 954 -5, 650 June -5, 640 49 549 «2,684 -8, 651 -74 153 -352 -3,824 -4,078 254 937 -2,887 July 1,417 3 1,610 2,998 i 262-3,455 -22,383 10 -21, 575 -818 958 -21,425 Aug _ 9,328 64 -38 1,273 519 3,430 -25,464 -6, 309 -18,922 -233 961 -24, 503 Sept 5,845 107 3,017 -24 16 3,312 -766 184 -11,400 -2,648 -9,117 365 949 -10,451 Oct 1,367 163 1,085 881 1,343 241-2, 344 -11,160 -1, 330 -10,032 202 974 -10,186 Nov -934 -332 -3, 227 1,849 -49 825 -14,540 -1, 573 -13,199 232 953 -13,587 Dec -2, 330 -2,088 -4,166 21 4,724 -139 -682 -10,303 -1,199 -9, 243 139 966 -9, 337 1936—Jan 2,462 -195 -6, 783 47 9,496 -137 34 -13,809 -559 -12,888 -362 971 -12,838 Feb 6,571 -518 -5, 705 1,821 9,612 1,377 -16 -9,846 -9,616 -230 920 -8,926 Mar 21,413 -841 -3, 492 1,724 21, 537 567 1,917 -7,667 -122 -7, 258 -287 P920 P-6, 747 April 22, 570 -131 7,292 -3 6,970 29 1 8,413 v-10, 298 P920 P-9,378 v Preliminary. rRevised. i $8,444,000 imported by Switzerland from Czechoslovakia in April 1936. » Through March 1935 gold held by Government; subsequently, gold held by Reserve Bank of India to which Government gold was transferred. ' Figures derived from preceding columns; net imports plus production minus increase in reserves in India. NOTE.—Germany, Netherlands, and Switzerland.—In some cases the annual aggregates of the official monthly figures differ somewhat from the revised offiicial totals published for the year as a whole. German gold movements by individual countries, beginning with January 1936, are subject to official revision. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

500 FEDERAL RESERVE BULLETIN JUNE 1936 CENTRAL BANKS Assets of banking department Liabilities of banking department Bank of England Gold (in (Fi p g o u u re n s d i s n s m te i r l l l i i n o g n ) s of d m i e s e p s n a u t r e ) t 1 - C C oi a n sh rese N rv o e t s es a c v n o a D d n u i c n s a e - t d s s - Se t c ie u s ri- ci N r ti c o o u t n l e a- Bankers' D P e u p b o l s i i c ts Other l O ia t t i b e h i s e li r - 1935—Mar. 27.. 192.5 71.1 5.6 99.0 381.4 96.6 20.1 41.2 18.3 Apr. 24.. 192.6 59.4 5.8 97.4 393.2 98.1 7.6 39.6 17.7 May 29.. 192.6 62.2 5.3 96.7 390.4 88.0 23.1 36.0 17.8 June 26_. 192.7 55.9 10.2 108.6 396.9 102.4 16.2 38.8 18.0 July 31... 192.8 44.5 10.8 100.7 408.3 75.7 24.4 38.5 18.1 Aug. 28.. 193.4 53.8 12.9 93.5 399.6 96.9 9.4 36.5 18.2 Sept. 25_. 193.6 55.4 12.4 95.4 398.2 87.2 19.5 39.0 18.3 Oct. 3C_. 194.7 54.8 11.2 98.2 399.9 82.5 26.2 38.6 17.7 Nov. 27_. 197.6 56.3 9.5 98.4 401.3 90.9 19.7 36.5 17.8 Dec. 25_. 200.1 35.5 8.5 94.7 424.5 72.1 12.1 37.1 18.0 1936—Jan. 29._. 200.5 63.3 18.8 94.0 397.1 106.0 15.9 36.7 18.2 Feb. 26._ 200.6 60.7 11.0 96.2 400.0 106.2 8.8 35.5 18.2 Mar. 25.. 200.6 54.1 5.0 97.0 406.5 83.6 18.0 37.0 18.3 Apr. 29 _. 202.7 45.9 8.3 114.0 416.9 104.7 7.5 39.0 17.7 May 27.. 206.4 40.3 6.7 104.7 426.1 78.3 19.8 36.7 17.8 Assets Liabilities Loans on- Deposits Bank of France (Figures in millions of francs) Gold e F x o c r h e a i n g g n e Do b m il e l s s tic G S t o h e v r o e m r r t n - - s O ec th u e ri r - N c b u e l g r e i o t s i t e e ia - s - O as t s h e e ts r ci N r ti c o o u t n l e a- Govern- Other l O ia t t i b h e i s e li r ment se- ties ment curities 1935—Mar. 29. 82,635 ,017 4,170 20 3,119 5,833 8,074 83,044 3,668 16, 213 1,943 Apr. 26.. 80,933 ,066 4,280 10 3,094 5,805 7,967 82,352 3,703 15,145 1,954 May 31.. 71, 779 2,150 7,137 937 3,371 5,805 8,691 82, 776 2,771 12, 315 2,008 June 28.. 71,017 ., 210 8,021 735 3,277 5,805 7,999 82,099 2,983 10,969 2,013 July 26.. 71, 277 ,240 7,301 692 3,171 5,805 8,077 81,128 3,241 11,090 2,105 Aug. 30.. 71, 742 :,236 7,575 543 3,103 5,800 8,212 82,240 3,244 10, 666 2,062 Sept. 27. 71, 952 ,232 8,060 192 5,800 8,023 82,399 3,051 10,848 2,060 Oct. 30_. 71, 990 .,262 8,373 371 3,141 5,800 7,939 83,306 2,862 10,647 2,059 Nov. 29. 66,191 L, 385 11,005 1,090 3,267 5,800 8,032 82, 447 2,826 9,361 2,136 Dec. 27.. 66, 296 if328 9,712 573 3,253 5,800 7,879 81,150 2,862 8,716 2,113 1936—Jan. 31.. 65, 223 ,324 9,210 3,350 5,708 8,724 81, 503 2,798 8,088 2,119 Feb. 28.. 65, 789 ^,309 9,758 932 3,250 5,708 8,186 81,239 2,854 8,706 2,134 Mar. 27. 65, 587 ,297 12,053 671 3,325 5,708 8,028 83,197 2,889 8,434 2,148 Apr -24 . 61,937 ,305 14, 392 623 3,349 5,708 8,193 82, 557 2,722 7,895 2,334 May 29? 57,022 ,427 19,381 797 3,380 5,708 (2) 84, 705 1,850 6,910 (2) Assets Liabilities Reichsbank Reserves Securities (Figu re re ic s h i s n m m ar i k ll s i ) ons of Gold e F x o c r h e a i n g g n e Tr b e i a ll s s ury b c i O l h l e s t c h ( k e a s r n ) d Se lo cu an ri s ty E as li g n i o b t l e e Other O as t s h e e ts r ci N r ti c o o u t n l e a- Deposits l O ia t t i b h e i s e li r cover 1935—Mar. 30_. 3,799 427 330 701 3,664 922 830 Apr. 30.. 3,861 373 328 739 3,711 952 837 May 31.. 3,732 338 324 775 3,810 770 824 June 29.. 3,879 337 324 781 3,895 819 838 July 31.. 3,833 337 324 814 3,878 743 845 Aug. 31.. 4,000 340 324 781 4,032 743 860 Sept. 30_ 4,144 346 324 770 4,143 774 879 Oct. 31_. 4,058 345 316 868 4,159 728 911 Nov. 30. 4,096 346 315 922 4,186 806 913 Dec. 31.. 4,498 349 315 853 4,285 1,032 923. 1936—Jan. 31.. 3,884 349 315 4,098 679 891 Feb. 29.. 4,026 348 315 861 4,177 652 914 Mar. 31. 4,201 336 321 771 4,267 768 782 Apr. 30. 4,353 240 319 702 4,348 688 798. May 30P. 4,606 219 319 648 4,430 729 807 v Preliminary. 1 Issue department also holds securities and silver coin as cover for fiduciary issue, which is fixed by law at £260,000,000. 2 Figures not yet available. NOTE.—For explanation of table see BULLETIN for February 1931, pp. 81-83, and July 1935, p. 463. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

501 JUNE 1936 FEDERAL RESERVE BULLETIN CENTRAL BANKS—Continued [Figures as of last report date of month] 1936 1935 1936 1935 Central bank Central bank Febru- Febru- April March ary April April March ary April National Bank of Albania (thou- ! Bank of Canada (thousands of Casands of francs): ; nadian dollars): Gold 7,556 7,556 7,121 Gold 179,951 180,417 180, 565 106,936 Foreign exchange 18, 349 18, 406 22, 448 Sterling exchange \ 1,681 387 96 557 Loans and discounts 3,170 3,233 2,398 United States exchange 7,6 7,097 8,355 13, 212 Other assets 5,031 4,647 3,232 Advances to Government... Note circulation 11, 679 11, 720 14, 022 Government securities: Demand deposits 10, 681 10, 780 10, 669 2 years or less 28, 602 29, 661 26,125 28, 373 Other liabilities 11, 746 11, 342 10, 507 Over 2 years 82,323 81,144 82, 540 115,014 Central Bank of the Argentine I Other assets 8,794 4,527 5,132 5,135 Republic 1 (millions of pesos): Note circulation . „„, 85, 518 84, 605 93, 692 Gold at home. 1, 224 1,224 1,224 Total deposits |2U, .. 210, 868 212,006 169, 379 Gold abroad and foreign ex- Chartered banks (187, 447 188, 203 186, 933156,833 change ' 111 121 141 Government 23,915 21,116 23, 989 11, 907 Negotiable Government bonds i 226 202 190 Other liabilities 7,054 6,847 6,202 6,156 Other assets 140 143 145 Central Bank of Chile (millions of Note circulation 1,021 jsos): Deposits: Gold and foreign exchange in re- Member bank 451 447 405 serve 142 142 142 Government 190 191 249 Loans and discounts 90 79 91 Other. 9 11 Government debt 706 706 713 Other liabilities.. 31 45 47 Note circulation 595 578 540 Commonwealth Bank of Aus- Deposits 274 281 347 tralia (thousands of pounds2): ; Central Bank of China3 (millions of j Issue department: yuan): " ! Gold and English sterling '. 16,003 16,003 15, 994 15,994 Gold i. 51 51 24 Securities ; 40,341 39,351 35,173 32,802 Silver,... _. j. 211 161 115 Banking department: Foreign exchange !. 74 90 14 Coin, bullion, and cash 1, 225 1,152 846 Due from domestic banks !. 104 102 53 London balances 19,314 26, 513 18, 575 32, 664 Loans and discounts !. 213 181 89 Loans and discounts i 10, 642 11,127 14, 044 11, 970 Securities L 310 323 184 Securities : 35, 657 35, 657 35, 707 35, 873 Other assets I. 47 45 61 Deposits.. ! 63,902 70, 890 69, 680 83, 533 Note circulation 254 225 93 Note circulation , 48,045 47,045 47,045 48, 550 Deposits—Government. •-I-- 305 275 237 Austrian National Bank (millions ' Bank \ 292 284 51 of schillings): Other ! 30 38 16 Gold 243 243 242 Other liabilities \ 130 132 144 Foreign bills 81 82 43 Bank of the Republic of Colombia ! Domestic bills 218 220 234 (thousands of pesos): | Government debts 624 624 624 Gold at home and abroad 29, 789 30, 830 30, 974 24,130 Note circulation 929 931 925 Foreign exchange... \ 5,738 3,658 4,168 3,352 Deposits 234 233 209 Loans to member banks j 1,477 887 1,208 6,521 National Bank of Belgium (mil- Note circulation ! 42,824 41,315 41, 532 35, 528 lions of belgas): Deposits ___! 30,633 31, 500 31,880 24, 306 Gold 3,429 3,319 3,359 2,931 National Bank of Czechoslovakia I Domestic and foreign bills 1, 247 1,182 1,201 1,115 (millions of koruny): Loans to State 160 160 160 166 Gold ! 2, 694 2,692 2,690 2,687 Note circulation 4,255 4,163 4,072 3,813 Foreign balances and currency. _ _; 44 47 73 307 Deposits : 750 830 Loans and advances j 1,436 1,413 914 1,069 Central Bank of Bolivia (thousands Note circulation i 5, 509 5,413 5,210 5,500 of bolivianos): Deposits. 647 778 534 865 Gold at home and abroad 22, 243 22,011 21, 294 12, 098 Danish National Bank (millions of Foreign exchange ! 8,640 8,022 7,752 9,581 kroner): Loans and discounts i 7, 230 7,575 7,943 14, 338 Gold 118 118 118 133 Securities: ; Foreign bills, etc 27 28 19 19 National Government 388, 202 388, 723328, 054 Loans and discounts 71 73 73 73 Other I 2, 921 2,921 2,877 3,346 Note circulation 382 371 375 370 Note circulation 156, 534 152, 521149,819 107, 954 Deposits 60 80 67 Deposits 225,162 228, 000229,490 208, 467 Bank of Danzig (thousands of Bank of Brazil (millions of milreis): i gulden): Cash i 281 264 331 Gold 4 20, 783 20, 766 20, 761 13, 204 Correspondents abroad 367 307 146 Foreign exchange of the reserve4. _ 1,723 2,021 1,631 253 Loans and discounts 2,935 2,885 2,858 Other foreign exchange 6,317 5,976 5,491 83 Note circulation i 10 20 20 Loans and discounts 15,038 15,893 15, 785 31, 098 Deposits. 3,216 3,116 2,717 Note circulation 28, 274 27, 698 38, 563 National Bank of Bulgaria (mil- I Deposits 2,651 3,879 2,990 639 lions of leva): i Central Bank of Ecuador (thou- Gold. i 1, 591 1,591 1,591 1,568 sands of sucres): Net foreign exchange in reserve.._i —128 -103 -100 -72 Golds 31, 568 15,156 Total foreign exchange • 386 364 440 428 Foreign exchange 6,181 12,852 Loans and discounts i 1,372 1,184 1,226 624 Loans and discounts 39, 757 53, 731 Government obligations ! 2, 671 2,671 2,671 2,698 Note circulation 47, 370 42, 490 Note circulation \ 2, 252 2,373 2,113 2,173 Deposits... _ ._ 15,160 22, 678 Other sight liabilities I 2,094 1,763 2,131 1,958 1 Bank commenced operations May 31, 1935. 2 Beginning March 1936 all items valued by bank in Australian currency; previously valued partly in Australian currency, partly in sterling. 3 Items for issue and banking departments consolidated < Parity of gulden reduced May 2, 1935, from $0.3296 to $0.1899. a By law of Dec. 18, 1935, gold in vault revalued at rate of 9.968331 sucres per gram of fine gold. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

502 FEDERAL RESERVE BULLETIN JUNE 1936 CENTRAL BANKS—Continued [Figures as of last report date of month] 1936 1935 1936 1935 Central bank Central bank April March Fe a b r r y u- April April March Fe a b ry ru- April National Bank of Egypt1 (thou- Bank of Japan (millions of yen): sands of pounds): Gold 515 513 511 474 Gold_ 6,545 6,545 6,545 6,545 Advances and discounts 820 914 1,222 709 Foreign exchange 2,558 3,269 4,125 2,500 Government bonds 554 533 397 659 Loans and discounts 5,016 5,385 5,963 4,148 Notes issued 1,317 1,367 1,657 1,332 British, Egyptian, and other Total deposits 580 657 439 Government securities 39, 555 38, 819 38, 024 35,069 Bank of Java (millions of florins): Other assets 5,309 5,867 5,683 3,213 Gold 85 111 Note circulation 21, 246 21, 639 22, 240 18, 982 Foreign bills 2 2 1 Deposits—Government 6,185 6,310 6,657 8,055 Loans and discounts 61 65 60 Other. 23, 384 23,611 23,141 16, 608 Note circulation 154 156 172 Other liabilities 8,169 8,327 8,303 7,831 Deposits... ... 24 22 33 Central Reserve Bank of El Salva- Bank of Latvia (millions of lats): dor (thousands of colones): Gold 46 46 46 46 Gold 12,917 12, 855 12,818 11,921 Foreign exchange reserve 7 6 7 5 Foreign exchange 4,345 4,550 3,957 2,719 Bills 51 50 50 59 Loans and discounts 484 680 798 152 Loans 61 59 58 74 Government securities 6,842 6,912 6,996 7,531 Note circulation 38 39 37 39 Other assets 1,882 1,992 1,923 1,415 Government deposits 48 39 38 49 Note circulation 14, 800 15,394 15, 667 14, 799 Other deposits 101 101 103 106 Other sight liabilities | 8,279 8, 255 7,531 5,675 Bank of Lithuania (millions of litu): Other liabilities \ 3, 392 3,340 3,295 3,265 Gold 53 51 41 46 Bank of Estonia (thousands of I Foreign exchange 2 , 21 19 22 6 krooni): Loans and discounts 2_ | 80 87 89 104 Gold I 34,125 34,124 34,130 28, 809 Note circulation i 107 109 106 99 Net foreign exchange | 2,463 2,450 2,046 5,126 Deposits | 50 47 47 53 Loans and discounts 21, 453 22, 229 22, 471 13, 601 Netherlands Bank (millions of flor- j Note circulation 41,887 41, 700 41, 278 38, 576 ins): I Deposits—Government 14, 345 14, 018 18, 594 9,920 Gold 710 714 645 Bank 10, 224 10, 625 9,393 8,408 Foreign bills.. 1 1 2 1 Other 2,682 2,869 2,464 2,108 Loans and discounts 152 152 154 246 Bank of Finland (millions of mark- Note circulation ! 766 781 750 871 kaa): Deposits I 137 121 130 63 Gold 501 501 489 323 Reserve Bank of New Zealand | Balances abroad and foreign (thousands of pounds): credits 1,355 1,328 1, 263 1,386 Gold 2,802 2,802 2,802 2,802 Foreign bills 83 87 85 85 Sterling exchange 24,225 24,830 23,113 22, 089 Domestic bills 892 865 766 797 Other assets 2,088 2,069 2,012 2,314 Note circulation 1,546 1, 520 1, 445 1,431 Note circulation 10, 240 10,153 9,855 9,434 Other sight liabilities 689 657 589 463 Demand deposits 17, 272 17, 903 16, 445 16,183 Bank of Greece (millions of drach- Bank 8,585 8,992 10, 671 3, 833 mas): Government 8,584 8,789 5,676 12. 342 Gold and foreign exchange 3,334 3,339 3,358 3,669 Other liabilities 1,602 1,645 1,628 1,588 Loans and discounts 5,140 5,155 4,873 2, 763 Bank of Norway (millions of Government obligations 4,172 4,172 3,281 3,284 kroner) : Note circulation 5,791 5,670 5, 521 5, 664 Gold_._ 185 185 185 135 Other sight liabilities 5,949 5,953 5,401 3,761 Foreign balances and bills 76 46 41 55 Liabilities in foreign exchange 256 275 251 119 Domestic credits 195 202 203 221 National Bank of Hungary (mil- Note circulation 364 357 346 322 lions of pengos): Foreign deposits 5 4 4 6 Gold 79 79 79 79 Total deposits l 89 75 83 79 Foreign bills, etc 31 33 33 22 Central Reserve Bank of Peru Loans and discounts 499 514 526 527 (thousands of soles): Advances to Treasury 80 80 81 58 Gold and foreign exchange 48, 813 43,099 Other assets 111 102 90 68 Bills 57,951 59, 993 Note circulation 390 391 393 369 Note circulation 84, 855 72, 349 Deposits 109 121 122 78 Deposits. 18, 610 26, 395 Certificates of indebtedness 104 104 104 109 Bank of Poland (millions of zlotys): Miscellaneous liabilities 171 166 163 172 Gold.. 381 427 445 508 Reserve Bank of India (millions Foreign exchange 15 26 17 19 of rupees) : Loans and discounts 809 736 750 688 Issue department: Note circulation 1,010 979 979 946 Gold at home and abroad 444 444 444 444 Other sight liabilities 148 155 163 Sterling securities 683 673 673 486 Bank of Portugal (millions of es- Indian Gov't securities 234 244 244 431 cudos): Rupee coin 591 594 587 502 Gold.. 910 906 Note circulation 1,707 1,688 1,671 1,669 Other reserves 445 463 Banking department: Discounts and advances 370 295 Notes of issue department. __ 246 268 278 193 Government obligations 1,046 1,048 Balances abroad 194 231 202 123 Note circulation 2,005 2, 032 Loans to Government 40 Other sight liabilities 970 881 Investments 50 51 51 51 National Bank of Rumania (mil- Other assets 8 6 5 5 lions of lei): Deposits—Go vernment _ _ 65 86 75 184 Gold 10, 971 10, 929 10, 884 10, 502 Bank 365 360 353 87 Foreign exchange of the reserve... 9 91 Other liabilities 109 110 108 102 Loans and discounts 5,553 5,509 5,399 5,802 Special loans 3— 2,474 2,594 2,688 2,880 State debt 11,151 11,179 10,956 * Items for issue and banking departments consolidated. * Beginning with July, 1935, foreign exchange includes foreign bills previously reported with loans and discounts. 1 Agricultural and urban loans in process of liquidation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JYNE 1936 FEDERAL RESERVE BULLETIN 503 CENTRAL BANKS—Continued [Figures as of last report date of month] 1936 1935 1935 Central bank April March Febru- April Central bank April March Fe a b r r y u- April National Bank of Rumania—Con. Swiss National Bank—Continued Other assets 11,941 11,871 11, 751 9,548 Loans and discounts. 143 152 234 195 Note circulation 22,401 23, 056 22,127 21, 786 Note circulation 1,311 1,319 1,274 1,319 Demand deposits 8,580 7,856 8,479 7,860 Demand deposits 403 411 466 Other liabilities 11,110 11,169 11, 081 9,549 Central Bank of the Republic of South African Reserve Bank Turkey (millions of pounds): (thousands of pounds): Gold 30 30 30 28 Gold 22, 931 29, 644 28,074 25, 976 Foreign exchange 19 17 16 13 Foreign bills 9,446 5,208 5,206 6,313 Loans and discounts 14 13 17 4 Domestic bills 99 161 277 148 Investments 188 188 188 187 Note circulation 13,068 13, 585 14, 251 12, 317 Other assets 24 25 24 25 Deposits—Government- 4,481 7,269 1,615 3,051 Note circulation 163 165 166 159 Bank 21, 508 26, 444 32, 834 24, 656 Deposits 39 36 37 31 Other 3,995 2,941 1,378 3,765 Other liabilities 72 70 72 69 Bank of Spain (millions of pesetas): Bank of the Republic of Uruguay Gold 2,228 2,228 2,253 2,269 (thousands of pesos): Silver 676 689 694 698 Issue department: Balances abroad 300 311 280 284 Gold and silver 41,091 41, 091 Loans and discounts 2,668 2,584 2,352 2,665 Note circulation 84, 395 82, 865 73,978 Note circulation 5,354 5,171 5,197 4,577 Banking department: Deposits _ 1,068 1,105 1,180 923 Cash reserves 37,124 38, 452 51, 052 Bank of Sweden (millions of Loans and discounts 94, 557 93, 785 97, 055 kronor): Other assets. 56,885 55, 738 43,603 Gold 461 454 440 352 Deposits- Foreign assets 565 588 607 612 Demand 31, 973 31,615 33,023 Domestic discounts and advances- 39 45 45 46 Time 41, 874 41, 595 39, 407 Government securities 29 29 29 138 Ministry of Finance 20, 994 22,021 Other assets 190 186 177 114 Other 20, 738 20, 737 2,793 Note circulation 780 795 756 675 Other liabilities 72,988 72,007 42, 509 Total deposits 391 401 442 485 National Bank of the Kingdom of Bank 161 226 237 Yugoslavia (millions of dinars): Government 193 146 174 Gold 1,497 1,490 1,480 1,282 Other liabilities 111 105 100 101 Foreign exchange 307 313 325 239 Swiss National Bank (millions of Loans and discounts 1,617 1,642 1,676 1,787 francs): Advances to State 2,272 2, 272 2,272 2,290 Gold 1,516 1,509 1,445 1, 365 Note circulation 4,824 4,904 4,930 4,435 Foreign balances and bills 12 14 13 31 Other sight liabilities 1, 553 1,481 1,472 1,236 i Liabilities of banking department. (See BULLETIN for December 1935.) BANK FOR INTERNATIONAL SETTLEMENTS [In thousands of Swiss francs] 1936 1935 1936 1935 Assets Liabilities April Mar. 31 April April Mar. 31 April Gold in bars 23, 200 24,198 15, 094 Demand deposits (gold) - __ 19,309 19, 088 12, 038 Cash on hand and on current account with banks ______ 9,538 9,601 2,285 Short-term deposits (various curren- Demand funds at interest._. _ . 14,094 12, 960 15,121 cies) : Central banks for own account: Rediscountable bills and acceptances Demand 23, 606 26, 020 26, 652 (at cost): Time—Not exceeding 3 months 108, 075 113,277 106, 875 Commercial bills and bankers' acceptances 137,125 150, 250 132, 441 Total 131,681 139, 297 133, 527 Treasury bills 188, 792 188, 279 222, 058 Central banks for account of others: Total . 325, 917 338, 529 354, 499 Demand 7,679 11,334 10, 967 Time—Not exceeding 3 months 2,989 2,985 2,950 Time funds at interest—Not exceeding Other depositors: 3 months 38, 952 36, 033 34, 099 Demand 522 813 1,458 Time—Not exceeding 3 months 684 83 2,109 Sundry bills and investments: Maturing within 3 months: Long-term deposits: Treasury bills 27,158 36, 303 32, 633 Annuity trust account 154,764 154, 340 154, 764 Sundry investments 61, 993 61, 701 65, 264 German Government deposit 77,382 77,170 77, 382 Between 3 and 6 months: French Government guaranty fund- 61,930 61,930 61, 930 Treasury bill* 21, 385 13,411 29,478 French Government deposit (Saar). 2, 031 2,031 2,031 Sundry investments 63,683 30,607 31, 783 Over 6 months: Total 296,106 295, 471 296,106 Treasury bills 51, 583 50, 292 26,188 Sundry investments 1,694 34, 530 35, 354 Capital paid in 125, 000 125, 000 125, 000 Reserves: Total 227, 496 226, 844 220, 700 Legal reserve fund 3,324 3,324 2,672 Dividend reserve fund __ 5,845 5,845 4,866 Other assets: General reserve fund 11, 690 11. 690 9,732 Guaranty of central banks on bills Other liabilities: sold 6,213 6,235 6,073 Guaranty on commercial bills sold_ 6,265 6,278 6,155 Sundry items 6,566 6,383 4,376 Sundry items 40,882 39,576 44,666 Total assets " 651, 976 660, 783 652, 246 Total liabilities 651,976 660, 783 652, 246 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

504 FEDERAL RESERVE BULLETIN JUNE 1936 COMMERCIAL BANKS [Figures are as of end of month, except those for England, which are averages of weekly figures] Assets Liabilities England (Figures in millions of pounds sterling) re C se a r s v h es M c n a o s l o h n l t o a e ic y r n t e d at B co il u ls n d te i d s- Se ti c e u s ri- L cu o s a e t n r o s s m to - a O s t s h e e ts r Total D De e m po a s n i d ts * Time1 lia O b t i h li e ti r es 10 clearing banks 1935—August.... 213 149 287 615 768 205 2,013 1,068 899 224 September. 208 147 299 619 766 205 2,024 1,080 903 221 October... 204 141 297 626 in 213 2,036 1,064 921 224 November. 214 147 293 621 778 214 2,040 1,080 918 227 December. 221 159 322 605 784 231 2,091 1,140 924 231 1936—January... 220 155 337 601 791 218 2,092 230 February._ 221 151 288 601 804 218 2 053 231 March 210 155 249 605 829 221 2,038 230 April 220 154 264 607 843 224 2,082 229 11 clearing banks 2 1936—January.. 228 159 346 630 815 227 2,164 1,166 937 242 February 229 157 295 629 828 227 2,123 1,125 940 242 March.._. 217 162 252 635 854 230 2,108 1,123 951 241 April..... 227 161 268 637 868 233 2,154 1,145 974 240 Assets Liabilities France (4 large banks. f F ra i n g c u s r ) es in millions of re C se a r s v h es D b u a e n f k r s om B co il u ls n d te i d s- Loans 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 a a c O n c w c e e p n s t- lia O b t i h li e ti r es 1935—August..._ 4,211 2,399 17, 226 7,592 1,414 28, 589 27, 916 673 257 3,995 September. 4,075 2,364 17, 585 7,450 1,489 28, 684 28,016 669 236 4,043 October. __ 3,996 2,413 17, 692 7,505 1,620 28,800 28,101 699 268 4,158 November. 3,909 2,759 16, 529 7,718 1,751 28,110 27,406 704 329 4,226 December. 3,739 2,484 16,141 8,025 1,900 27, 553 26,859 337 4,399 1936—January... 3,451 2,563 16,601 7,765 1,086 27, 548 26, 859 349 3,568 February.. 3,431 2,528 16, 470 8,006 1,101 27,603 26,903 700 338 3, 595 March 3,587 2,617 16,135 7,700 1,222 27,194 26, 522 672 391 3,677 Assets Liabilities Germany (5 large B l e io rl n in s o b f a n re k i s c . h sm Fi a g r u k r s e ) s in mil- re C se a r s v h es b f D a ro n u m k e s B co il u ls n t d e i d s- Loans Se ti c e u s ri- O as t s h e e ts r Total D D e e p m o a s n it d s Time o C b f r t r a e o d i m n it e s d l O ia ti t b h e i s e li r - 1935—August 151 341 2,221 2,899 1,019 992 5,464 2,419 3,045 705 1,454 September.. 195 341 2,035 2,918 1,061 996 5,382 2,436 2,947 701 1,463 October 156 314 2,167 2,889 1,033 993 5,408 2,451 2,957 1,463 November.. 139 316 2,162 2,884 1,027 983 5,376 2,435 2,941 686 1,449 December3. 1936—January 134 306 2,294 2,847 1,003 958 5,460 2,480 2,980 659 1,423 February.. _ 128 307 2,275 2,900 987 945 5,472 2,409 3,063 652 1,417 March 186 317 2,285 2,890 982 935 5,544 2,560 2,985 651 1,399 April 136 301 2,429 2,847 973 916 5,595 2,585 3,010 644 1,363 Assets Liabilities Deposits payable in Can- Canada Entirely in Canada S l e o c a u n r s ity ada excl d ud ep in o g s it i s nterbank abroad Note Other (10 chartered banks. Figures in mil- and net Securi- Other circula- liabililions of Canadian dollars) Other due ties tion ties Cash Security loans from Total Demand Time reserves loans and dis- foreign counts banks 1935—August 228 955 142 1,041 473 123 2,065 631 1,434 728 September. 223 965 157 1,103 464 123 2,131 687 1,444 734 October.... 235 132 1,116 476 121 2,151 685 1,465 744 November. 22G 151 1,137 453 124 2,174 699 1,474 748 December. 228 945 141 1,155 485 111 2,180 694 1,486 745 1936— F J e a b n r u u a a r r y y . . . . _ 2 22 2 4 0 874 1 15 5 1 0 1 1 , , 2 2 0 6 7 5 4 44 7 4 2 1 11 1 8 2 2 2 , , 1 1 4 5 4 2 6 6 4 3 5 5 1 1, , 5 4 1 9 7 9 7 76 4 1 5 March 227 864 154 1,316 459 117 2,197 665 1,532 783 April 228 862 145 1,314 478 114 2,229 1,536 767 1 Excluding deposits of the National Bank relating to offices outside England, which are included in the total. 2 District Bank included beginning January 1936. 3 Combined monthly balance sheet not published for December. NOTE —For back figures and explanation of table see BULLETIN for October 1933, pp. 639-646, and June 1935, pp. 388-390 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN 505 JUNE 1936 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 a y - l ba I n ta k l y of— N l e a t n h d e s r- Sw la i n t d zer- b C an e k n tr o a f— l J R u a 4 n t e e ef D fe a ct t i e ve b C an e k n tr o a f— l J R u a 4 n t e e ef D fe a ct t i e ve J In u l e y f f 1 e 9 ct July 19, 1935 2 3 3 3 H ^ 4 3K 3 A A l r b g a e n n i t a ina & 7V A 2 N M o a v r. . 16 1 , , 1 1 9 9 3 3 3 6 I I n ta d l i y a 3 4H N M o a v y . 1 2 8 8 , , 1 1 9 9 3 3 6 5 July 25 5 Austria zy July 10, 1935 Japan 3.29 Apr. 7, 1936 July 26 6 Belgium 2 May 16, 1935 Java _ 4 July 1, 1935 Aug 3 5 Bolivia 2 July 5, 1932 Latvia VA Jan. 1, 1933 A A u u ° g " 9 12 3 4H B C u a l n g a a d r a ia 6 6 A M u a g r . . 1 1 1 5 , , 1 1 9 9 3 3 5 5 N Li e t t h h u er a l n a i n a d . s .. . 6 J A u p n r e . 4 1 , , 1 1 9 9 3 3 6 0 Sept. 9 5 ... Chile 23^ Jan. 8, 1936 New Zea- 4H Sept. 17 Colombia.._ 3|-4| July 18, 1933 land _ 4 Aug. 1, 1934 Oct 17 5 Czechoslo- 4 Norway 33^ May 24, 1933 Oct 22 4H vakia 3 Jan. 1, 1936 Peru 6 May 20, 1932 Nov 5 Danzig 5 Oct. 21, 1935 Poland 5 Oct. 26, 1933 Nov. 14 3^ Denmark.__ 3H Aug. 22, 1935 Portugal _ _ 4K May 7, 1936 Nov. 15 4 Ecuador 4 Nov. 30, 1932 Rumania 4H Dec. 15, 1934 Nov. 22 .- 5 El Salvador- 5 July 5, 1934 South Africa 33^ May 15, 1933 Nov 26 6 England _-. 2 June 30, 1932 Spain 5 July 15, 1935 Jan 2, 1936 5 Estonia 4H Oct. 1, 1935 Sweden 23/6 Dec. 1, 1933 Jan.10 - 4 Finland.. _ 4 Dec. 3, 1934 Switzerland- VA May 3, 1935 Jan 16 3 France 6 May 7, 1936 Turkey 5lA Mar. 2, 1933 Feb. 4 2lA Germany .__ 4 Sept. 22, 1932 U. S. S. R... 8 Mar. 22, 1927 Feb 7 3^ Greece. 7 Oct. 14, 1933 Yugoslavia 5 Feb. 1, 1935 Mar. 28 5 Hungary 4 Aug. 29, 1935 May 7 _ 6 May 18 ±V May 30 _„ ___ 2 33^ Changes since May 7: Italy—May 18, down from 5 to 43^ percent; June 4 Netherlands—-May 30, up from 2lA to VA percent; June 4, up from 3H to In effect June 4,1936. 2 6 4 4^ *A 2V2 43^ percent. MONEY RATES IN FOREIGN COUNTRIES [Percent per annum] England (London) Germany (Berlin) Netherla d n am ds ) (Amster- Month ac 3 B c e a m p n t o k a n e n t r c h s e ' s s, T m b re i o l a l n s s t , u h 3 r s y Da m y o -t n o e - y day o a n B l l a d o n e w k p a e o n r s c s i e ' ts d P is r r c i a v o t a e u t n e t M 1 o m ne o y n t f h or Da m y o -t n o e - y day d P is r r i c a v o te a u t n e t M 1 o m ne o y n t f h or 1935-April 3.38 3.60 3.64 3.65 3.26 May 3.09 3.10 3.17 3.78 2.96 June 3.00 2.93 3.16 4.42 3.83 July 3.00 2.97 3.10 3.25 2.77 August 3.00 3.00 3.06 4.78 4.72 September. 3.02 3.07 3.21 5.48 5.65 October. __ 3.04 3.26 3.13 4.70 5.00 November. 3.01 3.10 3.07 3.15 3.00 December. 3.00 3.23 3.15 3.20 3.08 1936—January. __ 3.00 3.09 2.81 2.37 2.29 February. . 3.00 2.97 2.77 1.31 1.63 March 3.00 3.07 2.99 1.20 1.68 April 3.00 3.04 2.83 1.19 1.27 Sw la it n z d er- ( B B e r l u g s i s u el m s) F (P r a a r n is c ) e (M It i a la ly n) Hungary S ( h w S o t e o lm d ck e ) n - Japan (Tokyo) Month d P is r r c i a v o t a e u t n e t d P is r r c i a v o te a u t n e t d P is r r c i a v o te a u t n e t d P is r r c i a v o te a u t n e t c c ia o P l m ri p m m a e e p r e - r Da m y o -t n o e - y day L m oa t o o n n s t 3 h u s p Dis b co il u ls nted ov m e C o r a n n l i e l g y ht 1935-April 1.80 2.38 2.14 3.50 5.11 2.54 May 2.39 2.12 2.56 3.50 5.11 2.40 June 2.60 1.88 5.72 3.50 5.11 2.45 July 2.79 1.88 4.06 3.50 5.11 2.45 August 2.47 1.88 3.06 4. 17 5.11 2.60 S O e c p t t o e b m er b . e _ r _ . 2 2 . . 4 3 0 7 1 1 . . 8 8 8 8 2 2 . . 8 7 5 1 4 5 . . 8 0 7 0 4 4 - - 7 7 23 V ^- 2 4 V 3/ 2 2 5 5 . . 1 1 1 1 2 2 . . 6 6 2 9 November. 2.44 1.88 3.89 5.00 4 -7 2H4M 5.11 2.78 December. 2.50 1.88 5.89 5.00 4 -7 5.11 2.69 1936—January. __ 2.48 1.52 4.26 5.00 4 -63- 2X 5.11 2.64 F M e a b r r c u h ary.. 2 2 . . 3 2 7 6 1 1 . . 4 3 5 8 3 3 . . 8 7 1 4 5 5 . . 0 0 0 0 4 4 - " 6 " K ' 2 2 % H 2 V K 2 - A 4K 5 5 . . 1 1 1 1 2 2 . . 5 8 6 7 April 2.25 5.03 5.00 2yAy NOTE.—For explanation of table see BULLETIN for November 1928, pp. 794-796; 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

506 FEDERAL RESERVE BULLETIN JUNE 1936 FOREIGN EXCHANGE RATES [Average of noon buying rates for cable transfers in New York. In cents per unit of foreign currency] Year or month Ar t g in en a - t A r u a s l - ia A ( u s s c t hi r l i - a g B i e u l- m Br (m a i z l i - l g B a u r l i - a Canada Chile China Co b l i o a m- Cuba C sl z o e v c a h k o i - a m D a e r n k - (peso)* (pound)2 ling)! (belga) reis)i (lev)i (dollar) (peso)i (yuan) (peso)i (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. 3528 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 s 72. 8009 337.07 15. 4478 17. 8996 7. 9630 1. 0039 91. 9587 7. 6787 428. 5979 81. 6966 99. 9464 3. 8232 19. 0709 1934 33. 5793 400. 95 18. 7930 23.2867 8. 4268 1. 2852101.0060 10.1452 34. 0937 61. 7799 99.9362 4. 2424 22. 4998 1935 32. 6585 388. 86 18. 8309 18. 4241 8. 2947 1. 2951 99.4933 5. 0833 36. 5707 56.0110 99. 9198 4.1642 21.8834 1935—May 32. 5572 387. 55 18. 7680 16. 9461 8. 2797 1. 2756 99. 8977 5.1000 41.0979 55.0634 99. 9204 4.1683 21.8175 June 32. 8687 391. 28 18. 8821 16. 9393 8. 3122 1. 3070 99. 9078 5. 0996 40. 4002 54.4068 99. 9182 4.1828 22. 0458 July 33.0262 393. 31 18. 9148 16.9117 8. 3146 1.3149 99. 8322 5. 0990 38. 6791 52. 9692 99. 9194 4.1729 22.1303 August 33.1204 394. 52 18. 9405 16. 8878 8. 3657 1. 3332 99.7799 5.0633 36.8645 53. 2263 99.9185 4.1571 22.1848 September _ 32. 8563 391. 52 18. 8453 16. 8618 8. 3378 1. 2935 99. 2563 5. 0515 37. 6226 55. 9846 99. 9200 4.1363 22.0112 October 32. 7140 389. 61 18.8117 16. 8468 8. 3791 1. 3239 98. 5800 5. 0694 35. 6091 57.3115 99. 9200 4.1411 21. 9092 November.. 32. 8152 390. 90 18. 7753 16. 8946 8. 3792 1. 3404 98.9236 5. 0950 29. 6485 56. 5948 99. 9200 4.1363 21. 9834 December. _ 32. 8542 391. 28 18. 7828 16. 8565 8. 3902 1. 3309 99. 0453 5.0937 29.4496 57.0300 99.9200 4.1433 22. 0012 1936—January 33. 0742 394. 50 18. 8320 16.9355" 8.4167 1. 3446 99. 9297 5. 0950 29.6594 57. 3900 99. 9231 4.1602 22.1526 February. __ 33. 3291 398. 06 18. 9708 17.0416 8. 3803 1. 3380100.1136 5. 0950 29. 9116 58. 2683 99. 9209 4.1936 22. 3211 March 33.1346 396. 01 18. 8548 16. 9787 8. 4871 1. 2902 99. 8421 5. 0930 29. 8243 57. 2235 99. 9025 4.1637 22.1898 April 32.9541 393. 72 18. 7242 16. 9146 8. 5564 1. 2812 99. 5019 5. 0853 29. 7339 57.0023 99. 9025 4.1359 22. 0644 May 33.1114 396. 09 18. 7222 16. 9378 8. 5755 1. 2844 99. 8060 5. 0775 29. 6900 57. 0044 99.9000 4.1432 22.1838 Year or month ( E p g o y u p n t d) E ( n p g o l u a n n d d ) ( F m i a n r l k a k n a d F ( r fr a a n n c c e ) ( m m G r a a e e i r r n c k h - y ) s- G ( r d m r e a a e ) c c h e - ( H K do o o l n n la g g r) ( H p s e u a n r n g y o - )1 ( I r n u d p i e a e) I (l t i a r l a) y * J ( a y p e a n) n M ( e p x e i so c ) o N ( e l f t a lo h n r d e i s r n) - 1929 498.0689 485. 6879 2.5160 3.9161 23. 8086 1. 2934 47.1669 17.4414 36. 2020 5. 2334 46.0997 48.1830 40.1622 1930 498. 6002 486. 2126 2. 5169 3. 9249 23. 8541 1. 2959 33. 8530 17.4939 36.0672 5. 2374 49. 3898 47.1331 40. 2251 1931 465.1111 453. 4990 2. 3875 3. 9200 23. 6302 1. 2926 24. 3305 17. 4522 33.6895 5. 2063 48. 8509 »35. 4919 40. 2298 1932 359. 5406 350. 6067 1. 5547 3. 9276 23.7492 .8320 23.4604 17. 4460 26. 3468 5.1253 28.1112 31. 8500 40. 2949 1933 434. 3908 423. 6821 1. 8708 5. 0313 30.5179 .7233 29. 4516 22. 3598 31. 8159 6. 7094 25. 6457 28.1025 51. 7209 1934... 516.8549 503. 9302 2. 2277 6. 5688 39.3751 .9402 38.7156 29. 5746 37.8793 8. 5617 29. 7153 27. 7423 67.3831 1935 502. 6007 490.1761 2.1627 6. 6013 40.2575 .9386 48.2173 29.6023 36. 9640 8. 2471 28. 7067 27.7779 67. 7147 1935—May. 501.1845 488. 7755 2.1543 6. 5883 40. 2472 .9340 59. 3095 29.4356 36.8602 8. 2253 28. 7295 27.7882 67.6195 June 505. 9839 493. 4922 2.1782 6. 6121 40. 4072 .9423 57. 5162 29. 5062 37.1944 8. 2566 28. 9931 27. 7781 67.8743 July 508. 3151 495. 7659 2.1859 6. 6242 40. 3538 .9442 53.0310 29.6809 37. 3467 8. 2259 29.1510 27. 7660 67. 9862 August- 509. 5780 496. 9880 2.1907 6. 6262 40. 3456 .9437 50. 3262 29. 7010 37.4849 8. 2074 29. 3192 27. 7521 67. 7819 September _ 505. 5597 493.0654 2.1742 6. 5908 40.2278 .9384 50. 0547 29. 6240 37. 2082 8.1409 28. 9378 27. 7558 67.5556 October 503. 2065 490. 7834 2.1645 6. 5892 40.2251 .9391 48. 9702 29. 6367 37.0217 8.1243 28. 6687 27. 7631 67 7416 November.. 504. 9614 492. 4950 2.1719 6. 5862 40.2251 .9390 36. 4772 29. 6242 37.1419 8.1024 28.6828 27. 7673 67. 8024 December.. 505. 3533 492. 8772 2.1745 6. 5986 40.2167 .9383 32. 7016 29. 6185 37. 2008 8. 0750 28. 7386 27. 7675 67. 7696 1936—January 508. 8316 496. 2696 2.1890 6. 6251 40. 3966 .9424 32. 2051 29. 6778 37.4606 8. 0276 28. 9932 27. 7677 68.1734 February... 512.7045 500.0469 2. 2063 6.6810 40.6870 .9509 32. 7955 29.7856 37. 7344 8.0373 29.1299 27. 7691 68. 6769 March 509. 6623 497.0675 2.1928 6.6338 40. 4389 .9457 32. 5619 29.6168 37. 5101 7. 9830 28. 9381 27.7666 68. 3526 April 506. 7796 494. 2682 2.1807 6. 5898 40.2383 .9389 32. 5247 29. 4781 37. 3153 7. 8936 28. 8688 27. 7679 67. 8854 May 496. 9742 2.1901 6. 5858 40. 2845 .9338 32. 4629 29.4241 37. 5038 7. 8560 29.0754 27.7625 67. 6335 Year or month Z ( e p N a o e u l w n a d n ) d 2 N ( o k r ro w n a e y ) P ( o z l lo a t n y d ) P (e o g s r c a t u l u d - o) Ru ( n l m i eu a a ) - ( S A p f o o r u u i n t c d h a )2 ( S p p es a e i t n a) S S ( m t e d e o r t l n a t l i l t a t e s r s - ) S ( w k e ro d n e a n ) Sw ( l f i r a t a n z n e d c r ) -T ( u p r o k un e d y ) ( U g pe r u s a u o y - )i Y ( s d l u i a g n v a o i r - a ) 1929 483. 21 26 6827 11.1940 4. 4714 0.5961 483. 27 14.6833 56.0117 26.7839 19. 2792 48.4105 98. 6294 1. 7591 1930 468. 22 26. 7598 11. 2051 4. 4940 .5953 483. 79 11. 6670 55. 9639 26. 8543 19. 3820 47.0608 85. 8650 1. 7681 1931 415. 29 25. 0546 11.1970 4.2435 .5946 480. 76 9. 5453 52. 4451 25. 2540 19.4009 47.1814 55. 3572 1. 7680 1932 . . 320.19 18.0039 11.1823 3.1960 .5968 476. 56 8. 0438 40. 3970 18.4710 19. 4049 47. 2854 47.0639 1.6411 1933 340.00 21.4292 14.4135 3.9165 .7795 414. 98 10. 7189 49. 2320 22.0324 24.8355 60.4396 60. 3360 1. 7607 1934 402.46 25. 3161 18. 8460 4. 6089 1. 0006 498. 29 13. 6150 59. 0052 25.9815 32. 3663 79.0472 79. 9562 2. 2719 1935 391. 26 24. 6268 18. 8824 4. 4575 .9277 484. 66 13. 6783 57.1733 25. 2710 32.4972 80.3123 80. 2513 2. 2837 1935—May __. 389.90 24.5563 18.8426 4. 4407 1.0057 483. 34 13. 6522 56. 8942 25.1988 32. 3230 80.5269 80.0946 2. 2737 June 393. 54 24.7910 18.9146 4.4856 1.0078 488.06 13. 6982 57. 3762 25. 4408 32. 6800 80. 6688 80.3547 2. 2913 July 395. 65 24.9062 18.9574 4. 5095 1.0004 490. 61 13. 7259 57. 5466 25. 5583 32. 7474 80.6550 80.4841 2. 2965 August 396. 86 24.9482 18.9567 4. 5153 .9351 488. 74 13.7296 57. 8282 25.6227 32. 7180 80. 8063 80. 5377 2. 2973 September _ 393. 69 24. 7710 18.8450 4.4868 .8077 488. 42 13. 6569 57. 6180 25.4219 32. 5042 80.2667 80.1204 2. 2823 October 391. 86 24. 6570 18. 8361 4. 4703 .7965 485. 63 13. 6537 57.4404 25. 3030 32. 5326 80. 2442 80.1885 2. 2834 November. _ 393. 74 24. 7399 18.8249 4.4787 .7899 487. 08 13. 6477 57.6071 25. 3877 32.4449 80.2674 80.1500 2.2858 December. _ 394. 32 24. 7605 18.8486 4.4854 .7879 487.44 13.6704 57. 6112 25.4092 32. 4323 80.1536 80.2075 2. 2886 1936—January 397. 53 24. 9316 18. 9311 4. 5120 .7879 490. 83 13.7274 58. 0574 25. 5829 32. 6622 80. 6850 79. 9466 2. 2991 February... 401.15 25.1214 19.1315 4. 5489 .7632 494. 51 13.8412 58. 5530 25. 7779 33.0330 81.3030 80.2582 2. 3196 March 399.08 24. 9735 18. 9623 4. 5155 .7377 491. 56 13. 7450 58.2430 25. 6258 32.8206 80.8184 80.0216 2. 3030 April- 396. 80 24. 8335 718.8262 4. 5092 .7330 488. 76 13. 6540 57. 9389 25. 4817 32. 5800 80. 2835 79. 7692 2.2882 May 399. 02 24. 9689 718. 7922 4.5115 . 7309 491. 59 13. 6454 58. 2400 25. 6194 32. 3905 79. 7200 2. 2866 1 Partly or wholly nominal since April 1933. 1 Partly or wholly nominal since April 1934. 3 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 for Jan. 1-Dec. 10. 4 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 for Apr. 10-Dec. 31; average for old yuan for Jan. 1-Apr. 9 was 20.2103 cents. • Nominal from Nov. 23, 1935, to Apr. 1,1936, inclusive. • Silver peso quoted in place of gold peso beginning July 30,1931. Average for 1931 is for silver peso for July 30-Dec. 31. Average for gold peso for Jan. 2-July 29 was 47.6510 cents. » Nominal beginning Apr. 28, 1936. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

507 JUNE 1936 FEDERAL RESERVE BULLETIN PRICE MOVEMENTS IN PRINCIPAL COUNTRIES WHOLESALE PRICES—ALL COMMODITIES [Index numbers] Year or month (1 U 9 S 2 n t 6 a i = t t e e 1 d s 00) (1 C 92 a 6 n = a d 10 a 0) ( E 19 n 30 g = la 1 n 0 d 0) (1 F 91 r 3 a = n c 10 e 0) G (19 e 1 r 3 m = a 1 n 0 y 0) (19 I 13 ta = l y 100) 1 ( 9 O J 0 a c 0 p t = o a 1 b 0 n e 0 r ) ( N 1 l 9 e a 2 1 t n 0 6 h 0 - d 3 ) e 0 s r - = 1926 ._ 100 100 695 134 602 237 106 1927 95 98 642 138 495 225 103 1928 _ - ._ 97 96 645 140 462 226 102 1929 95 96 627 137 445 220 100 1930 86 87 100 554 125 383 181 90 1931 73 72 88 502 111 328 153 76 1932 _ _ _ 65 67 86 427 97 304 161 65 1933 66 67 86 398 93 280 180 63 1934 _ 75 72 88 376 98 273 178 63 1935 80 72 90 338 102 186 62 1935—January 79 71 88 350 101 277 182 62 February __ 80 72 88 343 101 278 184 62 March 79 72 87 335 101 288 184 6L April ... 80 73 88 336 101 296 182 61 May 80 72 88 340 101 302 182 61 June 80 72 88 330 101 308 180 61 July 79 72 88 322 102 310 180 61 August 81 72 88 330 102 323 183 61 September 81 72 90 332 102 330 189 62 October 81 73 91 342 103 194 63 November 81 73 91 348 103 194 63 December 81 73 91 354 103 192 63 1936—January 81 73 92 359 104 192 62 February _ 81 73 92 372 104 191 62 March 80 72 92 376 104 191 62 April _ _ 80 72 92 371 104 192 61 WHOLESALE PRICES—GROUPS OF COMMODITIES [Indexes for groups included in total index above] United States (1926=100) England (1930 = 100) France (1913 = 100) Germany (1913 = 100) Year or month pr F o a d r u m cts Foods co O m it t i m h e e s o r d- Foods p I r n o tr d d i u a u l s c - ts 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 ia u u l s c - ts p A r t g o u r d r i u c a u l c l t - s P s r io o n v s i- a t p f r n I i r i n n d o a i d l d s s h u u r e e a s c m d - w ts i- p tr I r i i n o s a d d h l u u e f d i s c n - ts - 1926 ._ 100 100 100 581 793 129 132 130 150 1927 99 97 94 599 678 138 129 132 147 1928 . 106 101 93 584 697 134 133 134 159 1929, ._ 105 100 92 579 669 130 125 132 157 1930 88 91 85 100 100 526 579 113 113 120 150 1931 65 75 75 89 87 542 464 104 96 103 136 1932 48 61 70 88 . 85 482 380 91 86 89 118 1933 51 61 71 83 87 420 380 87 75 88 113 1934 ... 65 71 78 85 90 393 361 96 76 91 110 1935 79 84 78 87 90 327 348 102 84 92 119 1935—January 78 80 78 87 89 351 350 100 81 92 119 February 79 83 77 87 89 339 346 100 81 92 120 March 78 82 77 85 88 329 340 99 83 91 120 April 80 85 77 85 89 325 345 100 84 91 120 May 81 84 78 86 90 324 353 101 84 91 119 June 78 83 78 86 89 307 351 102 86 91 119 July . 77 82 78 85 90 292 347 103 85 91 119 August 79 85 78 86 90 311 347 104 85 91 119 September 80 86 78 88 90 322 341 104 84 92 119 October _ _ 78 85 78 89 92 331 351 104 84 93 119 November 78 85 79 88 93 338 357 105 84 93 119 December 78 86 79 89 93 350 356 105 84 93 119 1936—January 78 84 79 89 93 364 355 105 84 93 120 February _ ._ 80 83 79 88 94 391 356 105 85 94 120 March 77 80 79 87 94 396 358 105 85 94 120 April 77 SO 79 87 94 385 359 105 85 94 120 Sources.—See BULLETIN for March 1931, p. 159, March 1935, p. 180, and October 1935, p. 678. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

508 FEDERAL RESERVE BULLETIN JUNE 1936 PRICE MOVEMENTS IN PRINC:iPAL COUNTRIES—Continued RETAIL FOOD PRICES COST OF LIVING [Index numbers] [Index numbers] Year or month (1 U S 9 n 1 t 2 a 0 3 i 0 t t - ) e 2 e 1 5 d s = E 19 n 1 ( g J 4 u = la l 1 y n 0 d 0) 19 F 1 ( r 4 J a = u n 1 ly 0 c 0 e )2 G 1 e 4 ( r 1 = m 9 1 1 0 a 3 0 n - ) y Year or month U 2 S 5 (1 n t = a 9 i 1 2 t t 0 e 3 e 0 - d s ) E 19 n 1 ( g J 4 u = la l 1 y n 00 d ) ( 1 J 9 F a 1 r n 4 a . = - n 1 J 0 c u 0 e n ) e 2 G 1 e ( 4 1 r = 9 m 1 1 0 3 a 0 - n ) y 1926 161 113 146 1926 ._. 103 170 103 142 1927 156 113 153 1927 102 164 104 148 1928 157 112 153 1928 100 166 105 152 1929 105 154 124 156 1929 99 164 113 154 1930 100 145 125 146 1930 97 158 118 148 1931 82 131 124 131 1931 89 148 116 136 1932 68 126 109 116 1932 80 144 107 121 1933 120 100 113 1933 76 140 106 118 1934 /I 122 98 118 1934 78 141 105 121 1935 80 125 86 120 1935 81 143 98 123 1935—April ___ 81 119 85 119 1935—April 139 122 May 81 118 86 120 May 139 123 June 82 120 86 121 June 140 99 123 July 80 126 83 123 July 80 143 124 August 80 126 81 123 August 143 125 Rftptp.mber 80 125 81 121 September 143 95 123 October 80 128 85 120 October 81 145 123 November 82 131 87 120 November. 147 123 December 82 131 88 121 December.__ _ 147 97 123 1936—January 82 131 90 122 1936—January 81 147 124 February 81 130 91 122 February 147 124 March. 80 129 91 122 March _ 146 99 124 April 80 126 90 122 April 81 144 124 i Since August 1933 the Bureau of Labor Statistics has published biweekly indexes. Figures given are for the date nearest 15th of month. 8 Index represents prices converted to gold basis of 1914. 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 Ge'ne'rale, and for cost of living, Commission d'Studes relatives au cout de la vie a Paris. SECURITY PRICES [Index numbers except as otherwise specified] Bonds Common stocks (1926 average= 100) Year or month ( U S a p v n t r a e i i c r t t e a e e ) g d s e ( 1 E D 92 n e 1 c g e = l m a 1 n b 00 d e ) r 1 ( a 1 F g 91 e r 3 a = n a 1 c v 0 e 0 er ) - G ( e a p v r r m e ic ra e a g ) n e 1 y U S n ta it t e e d s England l France Germany Number of issues 60 87 36 139 421 278 300 329 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 3 67.1 48.4 67.9 105.2 *50.3 1933 84.0 119.7 81.3 82.5 63.4 78.6 99.6 61.7 1934 * 96.T* ~*27.5 82.1 90.7 72.5 85.7 83.3 71.1 1935 102.3 129.9 83.5 95.3 78.5 86.3 79.7 82.9 1935—April 100.0 131.3 84.8 95.1 67.5 83.8 79.8 81.9 May 101.2 131.3 82.4 95.3 73.1 86.0 88.0 83.5 June . _ __ 102.2 130.3 82.8 95.3 76.0 86.9 82.4 86.0 July 104.2 131.5 82.4 95.3 79 4 86.9 77.7 86 8 August 104.2 129.8 83.9 95.4 83.3 88.3 79.0 87.6 September _ 103.1 124.3 82.7 95.1 85.0 84.7 76.4 85.0 October 101.9 125.5 82.1 94.9 86.1 84.6 77.3 83.5 November 103.5 128.9 78.8 94.9 94.2 88.9 76.8 82.1 December 104.5 129.5 79.1 94.9 95.7 90.2 77.3 81.9 1936—January, _ _ _ 106.5 130.1 78.9 95.1 101.7 93.1 83.7 84.2 February 107.8 131.0 77.9 95.2 106.7 95.2 86.7 86.0 March.. _ __ 108.4 130.2 75.2 95.3 108.7 94.1 84.1 85 6 April 107.9 131.5 75.8 95.3 106.6 95.5 82.8 88.3 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. Sources.—See BULLETIN for February 1932, p. 121, and June 1935, p. 394. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE DISTRICTS KANSAS CITY KANS. OKLA. Oklahoma City — BOUNDARIES OF FEDERAL RESERVE DISTRICTS — BOUNDARIES OF FEDERAL RESERVE. BRANCH TERRITORJES 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