Federal Reserve Bulletin, 1937-06

FKDERAL RESERVE BULLETIN JUNE 1937 Recent Banking Developments Condition of All Member Banks Annual Report of Bank for International Settlements BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

TABLE OF CONTENTS PAGE Review of the month—Recent banking developments 503-508 National summary of business conditions 509-510 Summary of financial and business statistics 512 Law Department: Field warehouse receipts 513-521 Revised indexes of freight-car loadings 522-529 Revision of weekly report of member banks in leading cities 530-531 Earnings and expenses of member banks 532-537 Condition of all member banks on March 31, 1937 (from Member Bank Call Report No. 72) 538-539 Annual Report of the Bank for International Settlements 540-575 Financial, industrial, and commercial statistics, United States: Member bank reserves, Reserve bank credit, and related items 578 Federal Reserve bank statistics 579-583 Reserve position of member banks; deposits in larger and smaller centers 584 Money in circulation 585 Gold stock and gold movements 586 All banks in the United States 587 All member banks 588-589 Reporting member banks in leading cities 590-593 Bank suspensions; bank debits; Postal Savings System 594 Acceptances, commercial paper, and brokers' balances 595 Federal Reserve bank discount rates 596 Money rates and bond yields 597 Security markets 598 Treasury finance 599 Governmental corporations and credit agencies 600-601 Production, employment, and trade 602-610 Wholesale prices 611 International financial statistics: Gold reserves of central banks and governments 612 Gold production 613 Gold movements 613-614 Central banks 615-618 Bank for International Settlements * 619 Commercial banks 619-620 Discount rates of central banks 621 Money rates 621 Foreign exchange rates 622 Price movements: Wholesale prices 623 Retail food prices and cost of living 624 Security prices . 624 Federal Reserve directory: Board of Governors and staff; Open market Committee and staff; Federal Advisory Council 626 Senior officers of Federal Reserve banks; managing directors of branches 627 II Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN VOL. 23 JUNE, 1937 No. 6 REVIEW OF THE MONTH after the first week of April the rapid growth of previous weeks slackened. On May 1 the final increase of 14% percent After the May 1 increase in reserve rein member bank reserve requirements went quirements member banks held excess reinto effect, and as a consequence excess reserves of more than $900,serves declined by about $700,000,000, al- Reserve position 000,000, or about 16 percent though the total volume of of member banks ' _., Recent banking ber bank reserves at Fedmem of required reserves. The developments i ll T eral Reserve banks showed following table shows the reserve position of little change. In connection with the final the various classes of banks in the week endincrease in requirements there was some ing May 21 and changes since the last week shifting of reserves among member banks, of January, covering the effects of both the effected principally by withdrawals of inter- March and May increases in requirements. bank deposits and in small part by interbank Fluctuations in excess reserves at the various borrowings. Open-market rates on bankers' classes of banks since the beginning of 1934 acceptances and the average rate on weekly are shown on the chart on the next page. sales of Treasury bills declined slightly in RESERVE POSITION OF MEMBER BANKS May, while other open-market money rates [Amounts in millions of dollars. Averages of daily figures, partly estimated] and rates on customers' loans showed little or no change. High-grade bond prices, which Change between weeks Excess reserves ending Jan. 29, and week ending declined sharply in March and early April, May 21, 1937 May 21 advanced somewhat in May, while stock Per prices declined further. Class of bank Total Re- cent Total deposits at weekly reporting member re b se a r l- ve qu r i e r - ed re- Amount q o u f ir r e e d ances serves rebanks continued to decrease in April and serves May, reflecting declines in bankers' balances Central reserve city banks and in United States Government deposits. New York -107 +523 -630 212 9 Chicago +25 +122 -97 58 11 Other deposits, which had declined somewhat Reserve city banks - _ + 119 +466 -347 317 16 in March, increased slightly in the following Country banks +144 +279 -135 357 35 weeks. Sales of securities by banks have All member banks + 181 +1, 390 -1,209 944 16 been the most important factor in accounting The increase of approximately $180,000,for the decrease in deposits in recent months. 000 in total reserve balances from the end of Member bank holdings of United States Gov- January reflected principally purchases durernment obligations continued to decline at ing April of about $100,000,000 of United New York City banks during April and May, States Government securities by the Federal but the decline was less rapid than in earlier Reserve banks and declines in Treasury and months, and holdings of other reporting other nonmember deposits at the Reserve banks showed little change. Commercial banks, offset in part by an increase in money loans by banks increased further, although 503 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

504 FEDERAL RESERVE BULLETIN in circulation. The increase in required re- some decline in the total amount of member serves was the result of the increased ratios bank deposits, accompanied of requirements. As the consequence of this ?e*enV*fnge! by important shifts in the increase, offset in part by the effects of a de-in bank deposits . ^ . crease in the amount of deposits and shifts in distribution ot deposits. their distribution among member banks of These changes in deposits had the result of the different reserve classifications, the ac- reducing required reserves by more than tual addition to required reserves amounted $100,000,000 below what they would otherto about $1,390,000,000 and the decrease in wise have been. The declines occurred prinexcess reserves to about $1,210,000,000. Dur- cipally in deposits of the United States Goving the week ending May 21 member banks ernment and in interbank balances. Adjusted still had excess reserves of $940,000,000. demand deposits, which represent prin- In the period covered by the table reserve cipally deposits of individuals, corporations, balances increased at reserve city banks and local governmental bodies, etc., declined country banks, reflecting in part withdrawals somewhat at New York City and Chicago of bankers' balances, while reserves of Newbut showed little change elsewhere, while York City banks declined and those of Chi- time deposits and deposits of foreign banks cago banks showed little change, notwith- increased. Changes in various types of destanding substantial liquidation of investment posits at reporting member banks in leading holdings by banks in these cities. The ratios cities from the end of December to May 19 of excess reserves to required reserves in theare shown in the table and from the beginweek ending May 21 ranged from 9 percent ning of September 1934 in the chart. CHANGES IN DEPOSITS AT REPORTING MEMBER BANKS EXCESS RESERVES OF MEMBER BANKS IN LEADING CITIES, DEC. 30, 1936, TO MAY 19, 1937 [In millions of dollars] All re- New porting York Chicago Other banks City cities Adjusted demand. -146 - 56 -78 - 12 U. S. Government. -520 -162 + 7 -365 Interbank: Domestic -894 -464 -50 -380 Foreign +100 + 99 + 1 Time +138 + 83 - 5 + 60 Total -1,322 -500 -125 -697 At country banks, for which call report figures as of March 31 are the latest available by types of deposits, adjusted demand de- Averages of daily figures for weeks ending Friday ; figures for country banks and for all member banks are estimated. posits showed little change in the first three at New York City banks to 35 percent at months of this year, while United States Govcountry banks. The amounts of excess re- ernment deposits declined by $120,000,000, serves held by the various classes of banks in and there was a small decline in bankers' May were closely similar to those held in thebalances. Time deposits increased by about early weeks of 1934, as is shown in the chart, $100,000,000. but these amounts constituted a much smaller Interbank deposits, which had increased proportion of required reserves, which have considerably from 1933 to 1936, with the increased as the result of a considerable large growth in excess regrowth in deposits, as well as of the increase Withdrawals of serves held by banks, have in reserve percentages. bankers9 balances been substantially reduced Since the beginning of 1937 there has been in 1937. Balances of domestic banks at mem- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

505 FEDERAL RESERVE BULLETIN JUNE 1937 ber banks in leading cities amounted to more These withdrawals of bankers' balances than $6,000,000,000 at the end of 1936, asreflected principally adjustments by member compared with an average of about $3,000,- banks to the increased reserve requirements. 000,000 held for many years prior to 1933. By Country banks in recent years have carried May 19, 1937, they had been reduced to about a portion of their idle funds in excess re- $5,100,000,000. Much of the previous ac- serves with Federal Reserve banks and a porcumulation of bankers' balances represented tion on balance with correspondents. Banks the redeposit by banks with their city corre- having insufficient excess reserves with the Reserve banks to meet the increases in requirements drew upon their balances with other banks. Some banks probably also with- DEPOSITS AT MEMBER BANKS IN LEADING CITIES drew balances to meet withdrawals of United BILLIONS OF DOLLARS Wednesday figures BILLIONS OF DOLLARS 16 States Government deposits in this period. Also in the early spring banks in agricultural sections customarily draw upon their balances to meet payments in urban areas for seed, machinery, and other supplies and equipment required by farmers in that season. These withdrawals of bankers' balances had the effect of increasing total reserves at country and reserve city banks and of decreasing reserves at central reserve city banks, but at the same time they reduced required reserves at the central reserve city banks and, since balances with correspondents are deductible from gross demand deposits in computing net deposits subject to reserve requirements, they resulted in an increase in required reserves at other banks. At country banks the increase in required reserves resulting from withdrawals of balr\ s#-_—„ _—»..,»•— ances from city correspondents largely coun- 1935 1936 1937 teracted a reduction resulting from the loss of Government deposits. spondents of funds received on deposit from Treasury balances with depositaries other other banks. In previous years there had than Federal Reserve banks declined from been at banks in leading cities outside New nearly $1,000,000,000 at the York large increases in balances due from Decrease in end °f December to about banks as well as in balances due to banks, and Treasury deposits $200,000,000 on May 19. this year there were decreases in both. Re- Deposits paid out by the porting member banks in leading cities re- Treasury were redeposited at banks by the ported balances with other banks of less than recipients so that there would have been an $1,800,000,000 on May 19, a decline of $560,- increase in other deposits, had this increase 000,000 since the end of December. It would not been offset through purchases by deposiappear that in this period nonreporting banks tors of securities sold by banks. The reducwithdrew on balance more than $300,000,000 tion in bank deposits, therefore, corresponded of their deposits from city correspondents. to decreases in bank holdings of United States Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

506 FEDERAL RESERVE BULLETIN JUNE 1937 Government obligations. Holdings of United BANK HOLDINGS OF DIRECT OBLIGATIONS OF THE States Government obligations by reporting UNITED STATES GOVERNMENT member banks showed a decline of $930,000,- [In millions of dollars] 000 between December 30 and May 19. Since Total the volume of outstanding United States obli- hold- Change from Dec. 31, 1936 ings gations increased during the period, it is Mar. 31 1937 Total Bonds Notes Bills apparent that purchases of United States obligations by non-banking investors in- Member banks: Central reserve city banks: creased substantially. Most of the purchases New York 3,356 -383 -128 -175 -80 Chicago 853 -254 -20 - 73 2 -161 of securities by investors were probably made Reserve city banks 4, 250 -176 -3 -268 +95 Country banks 2,397 +29 -3 + 18 +14 with funds that had been held idle, so that Total 10, 856 -783 -497 -132 these transactions did not result in a decrease Federal Reserve banks.. 2,430 +146 -122 -24 in the volume of active deposits. Total "open - market" public debt outstanding3 32,000 -22 +484 -506 The member bank call report for March 31, which has recently become available, 1 Includes a small amount of U. S. Savings bonds purchased. 2 The decline in Chicago banks' holdings of bills is largely due to gives information on temporary sales to customers over a tax period. 3 United States Government interest-bearing debt excluding U. S. Shifts in holdings of changes in the variousSavings bonds, Postal Savings bonds, and other special issues not generally purchased by banks. Government securities types of United States Government securities banks, $107,000,000 consisted of bonds maheld by all classes of member banks. For turing after December 31, 1949, holdings of the first quarter of the year total holdings which had increased in the last half of 1936. of all member banks decreased by about The decline in holdings of Treasury notes $800,000,000, following a reduction of some- may be largely accounted for by the March what more than $100,000,000 in the last half refunding, which reduced the . amount of of 1936. While the decline last year was en- notes outstanding, although banks as a group, tirely at banks in New York, the decline this including Federal Reserve banks, also sold year was at banks in Chicago and the other notes from their portfolios. The decline in reserve cities as well. A part of the decline Treasury bill holdings is largely explained by shown at Chicago banks on March 31 was the sale of bills by Chicago banks to their temporary, reflecting sales to customers over customers prior to the April 1 tax date. The a tax period. The following table shows hold- New York banks also reduced their holdings ings on March 31, 1937, of different types of of bills, while reserve city banks increased Government securities by the various classes their holdings. Changes in holdings of Govof member banks and by Federal Reserve ernment securities at country banks were banks, compared with the total outstanding small. amount of the kinds of debt that banks cus- The increase in the public debt outstanding tomarily purchase, together with changes during the first quarter of 1937 was in United during the first quarter of this year. States Savings bonds and various special is- Holdings of Treasury bonds by member sues ; obligations usually purchased by banks banks decreased by about $150,000,000, hold- showed no increase until April. The amount ings of notes by $500,000,000, and of bills of Treasury bonds outstanding increased by by $130,000,000. Sales of bonds by banks about $500,000,000, while notes decreased by in this period were larger than the decrease a similar amount. Since bank holdings deshown as many banks exchanged notes for creased during the period, it appears that bonds in March when notes were refunded other investors substantially increased their into bonds. Of the net reduction of $128,- holdings of Government obligations, espe- 000,000 in holdings of bonds by New York cially of bonds. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

507 JUNE 1937 FEDERAL RESERVE BULLETIN Increased borrowing at banks by commerce and industry, which became substantial in 1936, continued during the early Increase in months of 1937. Most of the in- Dank loans crease in member bank loans durthe first quarter of 1937, as shown by the call report for March 31, was in loans to customers for commercial, industrial, and agricultural purposes and in holdings of acceptances and commercial paper bought in the open market. There was also a small increase in real estate loans, mostly at country banks. Loans to brokers and dealers in securities have shown a rising tendency since last autumn, according to weekly figures, but were about the same at the end of March as at the end of December. Commercial loans to customers, as measured by loans other than those on securities or on real estate, have shown substantial increases at member banks in the central reserve and reserve cities for the past year or more. The following table gives the changes in such loans by classes of banks during the first quarter of 1937 and in the period since March 4, 1936, the date of the spring call of last year made about the time commercial loans at member banks were beginning to expand. COMMERCIAL, INDUSTRIAL, AND AGRICULTURAL LOANS TO CUSTOMERS BY MEMBER BANKS [Amounts in millions of dollars] Central reserve city banks: New York Chicago Reserve city banks Country banks _._ __ _ All member banks -tuo tnuomA gnidnats 7391 ,13 .raM about $180,000,000 in the first quarter of 1937, and from March 31 to May 19 there has been a further increase of about $140,000,000 at weekly reporting member banks. A large part of this growth was at New York City banks. The largest percentage increases in these loans at reserve city banks in the quarter were in the Cleveland, New York, and Chicago districts, while decreases occurred in the Dallas and Minneapolis districts. As compared with March 1936 there were substantial increases in New York City and Chicago, and in the reserve cities of each district except in the Minneapolis district. At country banks the growth in commercial, industrial, and agricultural loans, as measured by so-called "other" loans, amounted to over $50,000,000 in the first quarter of 1937. The increase since March of last year was much smaller at country banks than at reserve city banks, both in dollar volume and on a percentage basis. During the year, however, country banks in most districts increased their loans on real estate and their holdings of open-market paper, in addition to their other loans to customers. From March 4, 1936, to March 31, 1937, total loans of country banks increased by about $300,000,000 or by nearly 8 per cent. Loans on securities declined by about $30,- 000,000, while loans on real estate increased by over $100,000,000, most of which was on urban property, other loans to customers in- Increase since Increase since creased by nearly $150,000,000, and holdings Dec. 31, 1936 Mar. 4, 1936 of open-market paper increased by $70,000,- Per Per 000. Amount cent Amount cent The largest increases in loans at country banks during the first quarter of this year 1,600 73 5 488 44 407 5 1 155 62 were in the Federal Reserve districts of 2.276 45 2 471 26 1, 937 56 3 147 8 Boston, New York, Chicago, and Dallas. In- 6,220 179 3 1,260 25 creases also occurred in all other districts except San Francisco. From March 4, 1936, NOTE.—Includes all loans other than loans on securities and on real to March 31, 1937, there were substantial inestate and loans to banks, acceptances and commercial paper bought, foreign bills and own acceptances held by reporting banks. creases in loans at country banks in all Fed- At all member banks commercial, indus- eral Reserve districts except the three Northtrial, and agricultural loans increased by eastern districts and the Minneapolis district. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

508 FEDERAL RESERVE BULLETIN JUNE 1937 The amount of money in circulation has table giving end-of-month figures, was in continued to increase this year, reflecting in coin and paper currency in denominations of large part increased de- $20 and less, which are largely used for pay- Increase in money mands for trade and forrolls and in retail trade. Currency of dein circulation payrolls. The amount of nominations of $50 and $100 decreased this growth from the seasonal year, compared with increases in 1935 and low point on January 27 to May 19—about 1936, and the largest denominations showed $80,000,000—was somewhat less than in the a smaller increase than in those years. corresponding period of 1935 and 1936, but larger than was customary in that period CHANGES IN MONEY IN CIRCULATION, BY DENOMINA- TIONS, JANUARY 30-APRIL 30 in pre-depression years. One factor accounting for a smaller increase this year was a [In millions of dollars] decline in vault cash holdings of banks, which Denominations 1934 1935 1936 1937 had increased slightly in the same period $20 and under. . . . . ._ +98 +60 + 113 +89 of 1935 and 1936. Reporting member banks $50 and $100 -20 + 13 +21 -27 $500 and over + 1 +22 + 15 + 10 in leading cities showed a decline in vault cash Total* +79 +98 +149 +77 of $60,000,000 from January 27 to May 19. In this period currency outside reporting 1 Total excludes unassorted amounts held in Treasury and Federa] Reserve banks and $1,000,000 of unknown denominations reported by member banks increased by about $140,000,- the Treasury as destroyed, which are included in the figures by denominations. 000, compared with an increase of nearly $190,000,000 in the same period of 1936 andAppointment of Chairman and Federal Reserve one of $120,000,000 in 1935. Agent and of Deputy Chairman of the Banks have held larger amounts of cur- Federal Reserve Bank of Atlanta rency in recent years than was formerly cus- Effective May 27,1937, Mr. William H. Kettomary because with abundant excess re- tig was designated as Chairman and Federal serves they had less incentive to return un- Reserve Agent at the Federal Reserve Bank needed currency promptly to the Reserve of Atlanta for the period ending December banks. The recent increases in reserve re- 31, 1937. quirements have been responsible for the re- Effective May 27,1937, Mr. F. H. Neely was duction in vault cash this year. appointed as Deputy Chairman of the board of The principal increase in currency in cir-directors of the Federal Reserve Bank of Atculation this year, as shown in the following lanta for the remainder of the current year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

509 FEDERAL RESERVE BULLETIN JUNE 1937 NATIONAL SUMMARY OF BUSINESS CONDITIONS [Compiled May 25 and released for publication May 27] Industrial activity in April and the first and of other privately-financed work. Conhalf of May was maintained at the relatively tracts awarded for publicly-financed construchigh level of recent months. The general tion have been considerably smaller in the level of wholesale commodity prices declined first four months of this year than in the corsomewhat, reflecting considerable reductions responding period of 1936. in prices of many raw materials and semi- Employment rose further between the midfinished products. dle of March and the middle of April. There Production, employment, and trade.—The was a considerable growth in the number of Board's seasonally adjusted index of indus- persons employed in manufacturing and on trial production in April continued at 118 the railroads, little change in those employed percent of the 1923-1925 average. Manu- in the public utility industries and in trade, facturing production rose further, reflecting and a decline at bituminous coal mines. At increased output of durable goods. Activity factories the principal increases in employat steel mills was at a rate slightly higher than in March and about equal to that in the peak FACTORY EMPLOYMENT AND PAYROLLS 120 120 INDUSTRIAL PRODUCTION 110 110 f 100 100 I 90 1— 90 120 C^ EmplDyment 80 V J 80 110 J / 70 V 70 100 A V 60 \ 60 90 \ l\ Payrolls _^\% 80 \ ^\ / ^ 5 4 0 0 1 \ 5 4 0 0 70 V 30 60 1929 1930 1931 1932 1933 1934 1935 1936 1937 v Monthly indexes of number employed and payrolls at factories, 50 unadjusted for seasonal variation, 1923-1925 = 100. 1929 1930 1931 1932 1933 1934 1935 1936 1937 Monthly index of physical volume of production, adjusted for ment were reported by the steel, machinery, seasonal variation, 1923-1925 average = 100. and automobile industries, while the number month of 1929. Automobile production con- employed in the clothing industry declined. tinued to expand. In the first three weeks of Working forces at textile mills were main- May output in these industries was main- tained, although a decrease is usual at this tained at the levels reached at the close of season. Factory payrolls increased more April. Increases in output in April were than employment, reflecting chiefly further also reported for lumber and plate glass. At increases in wage rates. textile mills where output has been at a high In April sales at department stores showed level in recent months there was a slight re- little change and mail order sales were also duction in activity. maintained at the March level, while sales at At bituminous coal mines output declined variety stores declined. sharply following an increase in March, when Commodity prices.—The general level of consumers accumulated stocks of coal in antic- wholesale commodity prices, as measured by ipation of a strike. Crude petroleum output, the index of the Bureau of Labor Statistics, which had risen sharply from November to declined from 88.3 percent of the 1926 aver- March, showed further growth in April. age at the beginning of April to 86.9 in the Production of most metals also increased. middle of May. Prices of nonferrous metals, Value of construction contracts awarded, steel scrap, cotton, and rubber declined conas reported by the F. W. Dodge Corporation, siderably and there were also decreases in increased more than seasonally from March the prices of grains, cotton goods, silk, hides, to April and continued higher than a year and chemicals, while prices of shoes and clothago, reflecting, as in earlier months of the ing showed further small advances. Since year, a larger volume of residential building the middle of May prices of hogs and pork Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

510 FEDERAL RESERVE BULLETIN JUNE 1937 have advanced sharply and grain prices have MEMBER BANK CREDIT also risen. BILLIONS OF DOLLARS BILLIONS OF DOLLARS WHOLESALE PRICES 110 f Wednesday figures for reporting member banks in 101 leading cities, September 5, 1934, to May 19, 1937. Loans on real estate, loans to banks, and acceptances and commercial paper bought included in total loans and investments but not shown separately. Indexes compiled by United States Bureau of Labor Statistics, ings of United States Government obligations 1926 = 100. By weeks, 1932 to May 22, 1937. and other securities showed some decline, Bank credit.—Following upon the final in- which was offset in part by increases in loans. crease in reserve requirements, which became While domestic interbank and United effective on May 1, excess reserves of mem- States Government deposits declined further, ber banks declined from $1,600,000,000 to balances of foreign banks and other demand about $900,000,000, and in the first three and time deposits at reporting member banks weeks of May fluctuated around the new increased. level. Adjustments by banks to the new re- Money rates.—The open-market rate on quirements were reflected in a decrease in 90-day bankers' acceptances, which between interbank balances and in a small increase January and the latter part of March had in borrowings. The Federal Reserve System advanced from % to %6 percent, was re- 6 in April purchased $96,000,000 of United duced to y percent on May 7, and the rate 2 States Government securities, for the pur- on nine-months Treasury bills declined to pose of easing the adjustment to the new .62 percent on May 24 compared with a high requirements and preserving orderly condi- point of .74 percent on May 3. Other shorttions in the money market. term rates have shown little change in recent Total loans and investments of reporting weeks. Yields on long-term Treasury and member banks showed a small decline from other high-grade bonds have declined somethe middle of April through May 19. Hold- what. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

511 JUNE 1937 FEDERAL RESERVE BULLETIN MEMBER BANK RESERVES AND RELATED ITEMS BILLIONS OF DOLLARS WEDNESDAY FIGURES BILLIONS OF DOLLARS 12 12 11 11 10 10 GOLD STOCK / 9 r 8 8 7 MONEY IN CIRCULATION / 6 5 4 4 TREASLRY CASH 3 3 .._ .... : RESERVE BANK 2 2 : (CREDIT i 1 1 I TREASURY DEPOSITS . ,..*—• .... v'V.-1 0 1932 1933 1934 1935 1936 1937 8 8 7 7 MEMBER BANK 6 RESERVE BALANCES- 6 5 5 4 4 EXCESS RESERVES •:•:•:•: 3 3 2 2 REQUIRED RESERVES^ 1 1 0 0 1932 1933 1934 1935 1936 1937 Latest figures for May 19, 1937. See table on page 578. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

512 FEDERAL RESERVE BULLETIN JUNE 1937 SUMMARY OF FINANCIAL AND BUSINESS STATISTICS 1937 1936 Annual averages Apr. Mar. Feb Apr. Mar. Feb 1936 1935 1934 1933 1932 1929 RESERVE BANK CREDIT, MEMBER BANK RESERVES, Averages of daily figures; in millions of dollars AND RELATED ITEMS Reserve bank credit—total 2,522 2,472 2,475 2,480 2,484 2,493 2,481 2,475 2,502 2,429 2,077 1,459 U B B i . i l l l l S s s . b d G o is o u c v g o e h u r t n n t m ed ent securities 2,48 1 0 4 0 - 2,43 3 2 2,43 3 1 2,43 5 0 2,43 5 0 2,43 g 5 0 2,43 4 0 2,4351 7/ 2,4 < 2 3 J 5 2 O 2, 9Z 08 0o 5 0o 32 1,4 0pr/ 67 o1i 11 2 2 9 0 4 5 8 1 2 Monetary gold stock.. 11, 68611, 503 11,399 10, 202 10,172 10,163 10, 578 9,059 7,512 4,059 3,952 3,996 Treasury currency 2,541 2,537 2,531 2,503 2,502 2,495 2,503 2,478 2,381 2,271 2,096 2,015 Money in circulation 6,397 6,391 6,369 5,892 5, 857 5,779 6,101 5,585 5,403 5,576 5,328 4,476 Treasury cash 2,863 2,682 2,569 2,540 2,518 2,515 2,474 2,791 2,798 288 236 207 Treasury deposits with F. R. banks 159 205 167 845 760 466 446 128 81 55 39 22 Nonmember deposits and other accounts. _ 506 530 554 608 603 584 551 507 438 497 407 406 Member bank reserve balances: Total 6,824 6,704 6,747 5,300 5,420 5,808 5,989 5,001 3,676 2,343 2,114 2,358 Excess 1,552 1,371 2,152 2,510 2,653 3,038 2,512 2,469 1,564 528 256 REPORTING MEMBER BANKS Averages of Wednesday figures; in millions of dollars Total loans and investments 22, 280 22, 610 22, 600 21, 745 21, 449 21,053 22,064 19, 99718, 672 17, 505 19,080 22, 599 Loans to brokers and dealers in New York City 1,055 1,078 982 1,008 995 901 969 820 815 591 337 1,405 Other loans on securities 2, 267 2,270 2,256 2,292 2,274 2,230 2,267 2,301 2,711 3,343 4,508 6,251 All other loans 6,077 5,938 5,744 5,061 4,957 4,850 5,226 4,907 4,965 5,222 6,578 9,231 U. S. Government obligations: Direct 8,447 8,802 9,118 8,767 8,737 8,708 9,080 7,989 6,856 5,228 4,413 2,865 Fully guaranteed -. 1,181 1,206 1,212 1,273 1,248 1,194 1,250 928 «325 Other securities.. 3,253 3, 316 3,288 3,344 3,238 3,170 3,272 3,053 «3,000 3,121 3,245 2,847 Reserve with Federal Reserve banks 5,340 5,205 5,326 4,180 4,361 4,782 4,799 4,024 2,875 1,822 1,673 1,725 Cash in vault 346 359 387 370 365 356 383 326 271 240 214 248 Balances with domestic banks 1,967 1,998 2,252 2,262 2,334 2,335 2,358 2,112 1,688 1,322 1,250 1,142 Demand deposits—adjusted 15, 28315, 429 15, 572 13, 98213, 882 14,064 14, 619 12, 729 0) 0) 0) Time deposits (excluding interbank)2 5,145 5,142 5,094 4,971 4,923 4,893 4,999 4,883 4,937 4,946 5,666 6,788 Deposits of domestic banks3 5,544 5,679 5,988 5,484 5,650 5,647 5,810 4,938 3,814 2,822 2,772 2,787 Borrowings 3 3 1 7 13 2 5 6 8 115 228 674 MONEY RATES AND BOND YIELDS Averages of weekly figures; percent per annum Commercial paper 1.00 .88 .75 75 75 .75 .75 76 1.02 1.72 2.73 5.85 Stock exchange call loans _ 1.00 1.00 1.00 75 75 .75 .91 56 100 1.16 2.05 7.61 U. S. Treasury bills .70 .58 .38 10 11 .08 .14 14 26 52 .88 U. S. Treasury bonds, long term 2.74 2.50 2.31 2.51 254 2.62 2.47 270 310 331 3.65 3.60 Corporate high grade bonds (Moody's Aaa). 3.42 3.32 3.22 3.29 329 3.32 3.24 360 400 449 5.01 4.73 CAPITAL ISSUES Amounts per month; in millions of dollars All issues—total 272 382 497 986 763 303 518 392 180 89 146 959 New 152 185 168 176 128 107 164 121 116 60 100 841 Refunding 121 197 329 810 635 196 354 270 64 29 46 118 Domestic corporate issues—total.. 172 319 354 658 595 195 382 189 41 32 54 781 New 85 138 130 128 59 13 99 34 15 13 27 667 Refunding 87 181 225 530 536 181 282 155 26 18 27 115 Index numbers Common stocks (1926=100) 125 130 130 109 109 106 111 78 72 63 48 190 Wholesale commodity prices (1926=100): All commodities 88 86 80 80 81 81 80 75 66 65 95 Farm products 94 91 77 77 80 81 79 65 51 48 105 Foods 88 87 80 80 83 82 84 71 61 61 100 Other commodities 86 84 79 79 79 80 78 78 71 70 92 Retail food prices (1923-25=100) 85 85 80 80 81 82 80 74 66 68 105 BUSINESS INDEXES Index numbers, adjusted for seasonal variation, 1923-25=100 Industrial production P118 118 116 101 93 94 105 90 79 76 64 119 Manufactures P118 117 116 100 93 92 105 90 78 75 63 119 Minerals P114 128 115 106 97 111 104 91 86 82 71 115 Construction—total ?56 56 62 47 47 52 55 37 32 25 28 117 Residential _ — P48 45 47 30 26 25 37 21 12 11 13 87 All other P62 64 75 60 63 75 70 50 48 37 40 142 Factory employment... P102 101 100 89 88 87 92 86 83 72 66 105 Factory payrolls (unadjusted).. P105 101 96 79 78 74 82 71 63 49 46 109 Freight-car loadings4 84 83 82 71 66 71 75 64 62 58 55 107 Department store sales 93 93 95 84 84 83 88 79 75 67 69 111 MERCHANDISE EXPORTS AND IMPORTS Amounts per month; in millions of dollars Exports, including re-exports.. 256 233 193 195 182 205 190 178 140 134 437 -General imports P287 308 278 203 199 193 202 171 138 121 110 367 v Preliminary. • Partly estimated. i Figures not available. J Include time deposits of banks, domestic and foreign, 1929-1934. 8 Do not include time deposits 1929-1934. 4 Revised series. For description and back data see pages 522-529 of this BULLETIN. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1937 FEDERAL RESERVE BULLETIN 513 LAW DEPARTMENT Field warehouse receipts (5) Information on the warehouse receipt itself The Bureau of Agricultural Economics of which will give to the lender a concise yet comprethe United States Department of Agriculture hensive description of the product and thereby enable him to form an opinion of its fair market value; recently published an article regarding field (6) Terms of the warehouse receipt in general; warehouse receipts. It is believed that the (7) Whether there is bonded responsibility back article may be of interest to member banks, of the receipt, and, if so, by whom the bond is writand accordingly the text of the article is set ten, for the benefit of whom, with whom the bond is lodged, under what conditions it may be realized forth below for their information. upon by the holder of the receipt, and what action such receipt-holder must take to realize upon the FOREWORD bond; In the administration of the United States Ware- (8) Whether the receipt represents a bona fide house Act, the Bureau of Agricultural Economics relationship of bailor and bailee between the storer of the United States Department of Agriculture, and the warehouseman and one under which the which is charged with its administration, receives warehouseman and his representatives or his local many inquiries regarding field warehousing. They custodians are completely and wholly independent come from processors and merchandisers of agricul- of the storer. tural products, from growers cooperative associa- (9) The character and extent of disinterested tions, and from bankers and other lending institu- supervision exercised over the warehouse. tions which extend credit on the basis of warehouse It is hardly necessary to comment in detail upon receipts covering agricultural products as collateral. these various elements save the fifth and the eighth. These inquiries reveal a deplorable lack of knowl- As to the fifth factor, it is of course obvious that edge of the basic principles of warehousing that since the warehouse receipt represents the product must be observed if warehouse receipts are to constored in the warehouse it should contain such institute sound collateral. The purpose of this discusformation as will convey to anyone to whom the sion is to supply the apparent need for a fairly comreecipt is offered for collateral purposes a fair, honprehensive statement of the principles involved in est, and impartial description of the products themfield warehousing as they relate to the extension selves so as to enable one to form an opinion of the of credit. fair, value of the product, and to identify it. This FIELD WAREHOUSE RECEIPTS becomes all the more important when the storer seeks credit at some distance from the warehouse. By H. S. Yohe, in Charge, Administration U. S. One of the first questions asked of a person seek- Warehouse Act ing a loan by anyone engaged in commodity financ- COLLATERAL OR NO COLLATERAL ing is: What is the commodity you propose to give The storing of agricultural products is not new. as security? In the opinion of some lenders certain Usually the storing of agricultural products in pub- commodities are bankable or proper collateral. To lic warehouses is for one of two purposes—for future other lenders these same commodities would not conneed or for credit. Frequently storage is for both stitute proper collateral. Hence, when a loan is purposes, especially on the part of merchandisers desired on products or commodities in storage, it is and processors of agricultural products. During important that the warehouse receipts covering such the past fifteen years in many agricultural produc- commodities clearly recite just what the commodities ing areas there has been an increasing tendency on are which the receipts represent. the part of the producers themselves to store for Obviously, a receipt that conveys no information both purposes. as to the quantity, quality, grade, or condition of When products are stored for credit purposes it the product, or that fails to state what the product has been the general rule that such products should actually is, does not inform the lender on points that be surrendered to the custody of someone wholly in- are essential to making a fair and sound loan. It dependent of the one who stores. The person with does not enable the lender to tell whether the product whom products are stored is generally called a ware- is even a proper subject for collateral. Receipts houseman. When goods are stored with a ware- that recite that the warehouseman received a certain houseman he issues to the storer a receipt which is number of cases or bales or packages "said to congenerally termed a warehouse receipt. It is sym- tain" canned tomatoes or wool or fancy cigar-leaf bolical of the products themselves. It is this ware- tobacco give neither the storer nor the lender an house receipt which the storer offers to his banker index as to the value of the product represented by or lender as collateral for a loan. the receipt. And receipts which merely acknowledge that the warehouseman has received a certain num- FACTORS THAT MAKE RECEIPTS VALUABLE ber of cases or bales or packages and then recite The collateral value of warehouse receipts depends "contents unknown" are not only of less value, but upon several factors, the principal of which are: are a clear attempt on the part of the warehouse- (1) Suitability of the warehouse or storage facil- man to escape all liability so far as the commodity ity for storing the product; is concerned. (2) Responsibility of the warehouseman; Under either the receipts which recite "contents (3) Competency of the warehouseman and his unknown" or "said to contain," so far as the wareassistants to properly care for the product while in houseman is concerned and his. liability to deliver a storage; specific product, the cases or packages covered by (4) Authority of law under which the receipt is the receipts might be filled with sawdust or mere issued; trash. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

514 FEDERAL RESERVE BULLETIN JUNE 1937 To a lender who has given no more than superficial ceptance drawn to finance the storage of readily thought to making loans on the basis of warehouse marketable staples shall be secured at the time of receipts as collateral, any receipt that contains such acceptance by a warehouse, terminal, or other similar statements as "said to contain" or "contents un- receipt conveying security title to such staples, known" must have no appeal whatever as collateral. issued by a party independent of the customer" 1 The eighth factor—a bona fide relationship of The requirement of the Federal Reserve Act that bailor and bailee between the depositor and the such warehouse receipts must convey or secure title warehouseman, or the creation of a completely dis- to the products represented by the receipts obviously interested custodianship—is always desirable in the contemplates that the accepting bank shall have a financing of warehoused products, and it is essential lien on such products which is valid and enforceable in a field warehousing arrangement. Only to the against general creditors of the person for whose extent that the warehouseman is wholly independent benefit the acceptance credit is granted. The regulaof the storer is there a disinterested custody of the tion of the Board of Governors that such warehouse product. receipts shall be issued by a party independent of The importance of a disinterested custodianship the customer obviously is intended to require that of the product grows out of the fact that when the the actual custody of the goods shall be maintained storer offers his warehouse receipt to the lender as by an independent and disinterested party so the security for a loan he proposes to pledge the products bank that holds the warehouse receipt may be able in the warehouse covered by the warehouse receipt. to identify and obtain possession of the products It is the products that are the real security. It is and thus enforce its lien without difficulty. essential to the validity of a pledge that the pledgor A lien on personal property is of no practical value surrender possession of the thing pledged. He can- unless such property can be found and identified not pledge an article and at the same time keep it. when it becomes necessary to enforce the lien. If In other words, so long as the products are pledged custody of the pledged products is not given to and as security for a loan they must remain in the cus- maintained by a disinterested party, there is grave tody and exclusive control of someone other than the danger that the borrower will be able to dispose of borrower. "The borrower and his collateral are or release the product in such manner that innocent best parted." purchasers will acquire good title to them, and the In attempting to establish a disinterested custody lender's security will thus be entirely destroyed. the person who desires to borrow on the products should not content himself with representations of DISINTERESTED CUSTODIAN PRINCIPLE RECOGNIZED BY those who wish to serve him as warehouseman. Nor COURTS should he be content with something in the way of warehousing which he thinks may get by his banker; The principle of disinterested custodianship has neither should he attempt short cuts to save a little been repeatedly recognized by the courts, particucost. larly where there is a conflict of interests. In one In testing collateral, the real issue always is: leading case the Supreme Court stated: "In this Has there been an absolute and unequivocal parting conflict of interests, the law wisely interposes. It on the. part of the borrower with possession of the acts not on the possibility, that, in some cases, the products he proposes to give as security for the loan? sense of that duty may prevail over the motives of That question the owner of the products can easily self-interest, but it provides against the probability determine for himself. All he needs to do is to ask in many cases, and the danger in all cases, that the himself and honestly answer the question: Under dictates of self-interest will exercise a predominant the proposed form of warehousing have I at any influence, and supersede that of duty." In a New time access to the products other than in the presence Jersey case the principle was stated thus: "So jealous of the warehouseman and may I at any time exercise is the law upon this point that a trustee may not put any control of the products? If the answer is in the himself in a position in which to be honest must be affirmative to the slightest degree, possibility of trou- a strain on him." ble in the warehousing arrangements exists. "The Obviously, the person who is seeking credit, and borrower and his collateral are best parted," and offering stored agricultural commodities as colthere is no absolute and unequivocal parting such as lateral, is not a disinterested custodian, and neither the law contemplates if the borrower has access to is he free from that conflict of interests to which his collateral at his own pleasure or can exercise the Supreme Court referred in the quotation above any control over it. cited. As has many times happened, a borrower who attempts to serve as the custodian of the col- REQUIREMENT OF FEDERAL RESERVE ACT AND lateral places himself in the position where "the REGULATIONS dictates of self-interest will exercise a predominant influence and supersede that of duty." The principle of disinterested custodianship is In the light of these observations, the establishrecognized in the Federal Reserve Act and in the ment between the storer of goods and the warehouseregulations thereunder of the Board of Governors man of a relationship of bailor and bailee, and of of the Federal Reserve System relating to the eligicomplete independence between the storer and the bility of bankers' acceptances for rediscount by Fedwarehouseman and his agents, becomes all the more eral Reserve Banks. Section 13 of the Federal indispensable. Reserve Act requires that a banker's acceptance These preliminary observations, which apply to drawn to finance the storage of readily marketable the warehousing of agricultural products in the sense staples shall be "secured at the time of acceptance that the public, the banking fraternity, and the courts by a warehouse receipt or other such document conveying or securing title1 covering readily market- generally think of warehousing of products that are to be used as collateral for credit purposes, are able staples." Section XI of Regulation A of the Board of Governors requires that "a banker's ac- 1 Italics by author. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1937 FEDERAL RESERVE BULLETIN 515 equally applicable to a consideration of field ware- self. The motive back of any field-warehousing housing. The same requirements must be observed arrangement, as far as the storer is concerned, is if a field warehouse receipt is to stand the acid test a desire on his part to enlarge his credit. In other to which it will be subjected if a question is raised words, he endeavors to place his products in a posias to its validity as collateral. tion that will enable him to pledge them as collateral to a loan. Almost without exception as soon as the FIELD WAREHOUSING credit need passes the field-warehouse arrangement What is field warehousing? In the last 5 years also passes. much has been written on this subject. Some writers Placing the products in a credit or collateral posihave approached the subject as though they had tion could be accomplished by placing them in storfound a wholly new method of financing crops while age in a public warehouse, but there might not be a in storage awaiting demand; still others as though public warehouse in the town in which the owner of they had found a formula for financing in a big the products operates. Moreover, the owner of the way a man who is entitled to little if any credit. products frequently owns or controls a warehouse A few writers have used the subject as a vehicle or storage facility. The very nature of his business to attack other approved methods of warehousing frequently obliges him to have storage facilities. because those methods diverted revenue from those Naturally he wants to use them to greatest advanmaking the attack. Other articles that were osten- tage. Again, he may wish to avoid unnecessary sibly about field warehousing gave the uninitiated freight hauls. Further, he may feel that he can and uninformed little basic information on the sub- make sales and shipments to greater advantage ject but have complained of alleged evils in sub- from his own warehouse facility than from some sidiary warehousing, quite ignoring the fact that other warehouse. subsidiary warehousing is authorized by statute and Field warehousing is seldom resorted to except has met with court sanction in a number of States. by merchandisers or processors of products. There- Some of the authors who complained about sub- fore, growers of agricultural products do not use sidiary warehousing ignored the fact that they this system of warehousing as individual producers. themselves were engaged in a subsidiary warehouse They generally store in public warehouses if they operation. Many of the articles on the subject had wish to use warehouse receipts for financing purthe earmarks of super-salesmanship, and an attempt poses. However, a group of growers such as a coto promote business on a shoe string. operative association may use field warehousing, but In all that has been written about field warehous- only when the association has a warehouse of its ing it is regrettable that so few articles are really own that it desires to use. informative as to basic facts tha.t are essential to the The principal users of field warehousing in the patrons of warehousemen and to the lenders who agricultural field are canners of fresh fruits and wish to make sound commodity loans. From many vegetables, some grain merchants who have their articles that have appeared it is impossible for any- own elevators, crushers of cottonseed, a few sugar one to draw the essential principles. Even those and rice dealers, and some growers' cooperative assowho conscientiously seek dependable information ciations whose members produce grain and fresh have been confused. fruits and vegetables for canning or other purposes. In a field-warehousing plan that will stand the FIELD WAREHOUSING GOVERNED BY PUBLIC WAREHOUSE crucial test, the merchant (or the growers' associa- PRINCIPLES tion) leases his warehouse to a party who is in no way interested in or related to the merchant (or the There is nothing new or mysterious about field growers' association), to operate it as a public warewarehousing. Reference to decisions of courts show house. The lessee takes complete charge and control that the subject has been before the courts for the of the building by virtue of a valid lease. He relast 40 years, if not longer. ceives the lessor's products in storage just as he The principles involved in public warehousing in would receive the products of a farmer or any other the generally accepted meaning of the term are well storer. In other words, the lessee—the warehouseknown. They have been established by a long line of man—must assume full responsibility for the operajudicial decisions. Field warehousing, being but an tions of the warehouse. The only relation between off-shoot of public warehousing, is governed by the the warehouseman and the owner of the warehouse same principles of law and finance. In the apparent should be that of lessor and lessee, and bailor and attempt to advance the theory that a new method bailee if the lessor stores products in the warehouse. of financing has been developed, no claim is made In some parts of the country it is not uncommon that new principles have been developed. Rather, for a warehouseman who operates in some city to the claim is made that new procedures and methods lease a number of warehouses at a number of dihave been originated. ferent points throughout a State, or several States, It is an apparent attempt to short-cut established and operate these on the principle of field warerules and principles, while at the same time prohousing. fessing that the established rules and principles of Field warehousing is sound if proper precautions public warehousing are being observed in everyday are taken scrupulously to establish and to maintain operation. To the extent that these make-believe the relationship of bailor and bailee. This means a observations and short-cuts and shams are injected meticulous observance of all the legal requisites into field warehousing, to that extent are the wareessential to such a relation. Short-cuts on the plea house operations and the warehouse receipts issued of lowering costs have no place in field warehousing. thereunder likely to fail when a real legal test is The principle of disinterested custodianship must be applied. strictly observed. It will not do for a warehouse- Field warehousing is a plan to store on the man to lease a building and then let the lessor or premises of the owner the very products on which employees of the lessor who may wish to store he desires to effect a loan at the least cost to him- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

516 FEDERAL RESERVE BULLETIN JUNE 1937 therein run the warehouse and conduct it just the colorable or constructive change of possession same as before the lease arrangement was made. accomplishes nothing in favor of a pledgee. In sound field warehousing the lessee must exercise There must be open, visible, unequivocal change complete control and dominion at all times over the of possession manifested by such substantial warehouse and the products stored therein. This outward signs as to make it evident to the world does not necessarily mean that the lessor must be that the control of the owner has wholly ceased, denied access to the warehouse at all times, but it and that another has acquired; and is openly does mean that he must be denied access except in exercising the exclusive dominion over the propthe presence of the lessee or his duly constituted erty." agent, as in the case of other public warehouses. The mere leasing of premises to another who repre- There is no room for make-believe, pretense or sents himself as a warehouseman and as in charge sham in field warehousing. No stronger language of the building will not in itself suffice. And record- could be used to condemn an intent to make one ing of the lease, even if there is a statutory require- believe that a disinterested custody existed when it ment for the recordation, in and of itself will not did not in fact, than was used in a celebrated case give validity to the warehouse receipts. Recording in which the court said: is only an attempt to give notice that the premises "There was really no delivery and no change have temporarily passed from the real owner to of possession, continuous or otherwise. The another. But if the recording is not required by alleged change was a mere pretense, a sham." law, such recordation is not even constructive notice. Nor is the collateral value of receipts improved by In sound field warehousing the warehouseman must a statement thereon that they are issued in contake and must maintain actual possession of the formity with the Uniform Warehouse Receipts Act. building and the goods at all times. Such possession That Act has no administrative provisions. It remust be exclusive and unequivocal, and open and lates merely to the form of the receipt to be issued. notorious, so that other creditors of the owner of the Even when a receipt complies in every respect with goods may not be misled. A sufficient number of that Act it leaves much to be desired from a colsigns of such size as readily to attract the notice lateral standpoint. In fact, a receipt issued in full of the public, clearly indicating that the premises compliance with that statute ordinarily fails comare in the control of the warehouseman, must be pletely to give information to the lender as to what placed inside and outside the buildings or premises. the commodity is that the receipt represents, or its They should appear at all points of entry and exit condition, or quality, or quantity. to the premises. Each lot of goods covered by a receipt, unless stored But all the leases, recorded or not, and all the on a fungible basis, must be segregated from goods signs, large or small, inside and outside of the ware- of others, including other goods of the owner, and house, will not serve to save the receipts from fatal the lots must be so marked as to permit identification legal attack if it can be shown that collateral and readily on the basis of the information appearing supplemental agreements existed between the ware- on the warehouse receipt. houseman and the owner of the property, which were Warehouse receipts must be issued by a party in violation of well-established legal principles. independent of the customer. This does not mean the Again, if at any time the validity of the receipts mere perfunctory signing of warehouse receipts by should be attacked it would probably be disastrous the president or other official of a warehouse comif it could be established that the storer whose repany. A receipt is issued by and in the name of the ceipts are in question had a key that permitted him warehouseman, whether he be an individual, a partfree access to the warehouse. nership, or corporation. It is the warehouseman as Moreover, it would be most unfortunate for the such who must issue the receipts. He is supposed lender as holder of such collateral if it were shown, to be the real custodian and the only custodian of as is frequently the case, that the storer not only the goods, and his warehouse receipts represent that had a key to the warehouse, but that he entered at he alone is the custodian. Therefore, regardless of his pleasure, and sampled and inspected the goods legal fictions, sound business principles dictate that in the presence of prospective buyers, when neither he should be wholly independent of the storer, and in the warehouseman nor his local custodian was pres- no way related to the storer financially, by stock ent. That is not the kind of open, notorious, un- ownership in a storing corporation, or by virtue of equivocal, and exclusive control that the law con- interlocking directorates or officials, or by blood or templates. kin relationships. The words used by a court in an outstanding case may not be passed over lightly: THE CUSTODIAN "Delivery of possession is of the very life of Who may be a custodian? The answer is simple. the pledge. No mere agreements respecting Anyone who is competent to care for the goods that possession can create it. The contract of pledge are to be stored, who is honest, and who is indecannot exist outside of the fact of change of pendent of the storer in every sense. possession. The pledgor must dispossess him- When a warehouseman operates more than one self openly, completely, unequivocally, and 'withfield warehouse he uses at each building or wareout deceptive combinations which lead third perhouse a custodian who is- supposed to be his agent, sons into error as to the real possessor of the and his only. This custodian is the key man. He thing/ and the pledgee must take and maintain may make or defeat the whole operation. It is essenan open, exclusive, and unequivocal possession." tial that he should be as free and disinterested of any storer as the warehouseman himself. The degree In another celebrated case the court said: to which he is disinterested may determine the valid- "The general law of pledging requires posses- ity of the receipts themselves. sion and cannot exist without it. * * * Merely What are the requirements of a custodian? These Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

517 JUNE 1937 FEDERAL RESERVE BULLETIN the United States Department of Agriculture has rower? If so, when, and what were his duties? By outlined in Service and Regulatory Announcements whom is he now employed, and who pays him? If No. 136 (B. A. E.), Sections 5 and 6, issued Septem- he has been taken from the employ of the borrower ber, 1932. After years of experience in this field on the eve of the creation of the warehousing arand careful observation of what actually takes place rangement, and transferred to the warehouseman's in every-day operation in field warehousing, and pay roll, this should cause one to pause, for, as one after careful and exhaustive study of adjudicated lender who has wide experience in commodity financcases, the Department is convinced that these re- ing expressed it: "No barrier of legal sophistry will quirements are the minimum that should be exacted. prevent the servant from hearing his pay-master's Anything short of that is fraught with danger. voice. Legal transfer means little so long as eco- It is always highly important that the custodian nomic dependence continues." arrangement be carefully scrutinized for the cus- The words of one court on this point also deserve todian is the key man. He is the man who controls. careful consideration: If he fails, all fails. No lender can afford to take "The appointment of the owner, or one of his any representations on this subject unless they be staff, as a warehouseman's custodian of goods by wholly disinterested parties who are competent stored, while not conclusively ineffectual, is to investigate. Repeatedly the attempt has been nevertheless a circumstance to give pause, and made to convey the impression under certain field- must be carefully weighed in connection with warehousing set-ups that the custodian is independ- the other facts in evidence." ent of the borrower and that he is solely the warehouseman's own employee. The following is quoted In another case the court remarked: from an article that recently appeared in print: "The custodian remained an employee of the "Loans secured by field warehouse receipts pledgor and any possession he may have had was covering currently salable merchandise are made that of his employer." by many large commercial banks. The bank Even if the warehouseman pays the custodian's cannot take physical charge of the goods offered salary a serious question would arise if it were as collateral, so some device is needed to give the established that the custodian is the same person bank the protection of the value of the merchanwho served as custodian or warehouse clerk for the dise. Field warehousing provides the means of borrower before the field warehouse arrangement getting this protection by providing a way of was ever entered into, that he receives the same placing the goods in the hands of a disinterested salary that he did from the borrower, that the wareand independent third party. The third party houseman requires the storer or borrower to reimin this case is the warehouse company operating burse him for the salary of the custodian, and that what is known as 'field warehouses.' * * * it is understood by the custodian and storer that "Goods and chattels are in the possession and when need for the field-warehouse arrangement charge of the warehouse company which main- ceases the custodian will return to the employ of tains a custodian on the premises where the the storer. These facts would undoubtedly be regoods are stored. This custodian is properly ferred to the jury in case of court action. Such facts bonded and supervised by the warehouse com- could give rise to a serious question as to whether pany." the field warehouseman ever had that exclusive and unequivocal possession of the goods that the law The word "device" here is in itself suggestive. contemplates. Webster defines it as "anything fanciful and in- In considering this relationship of custodian and geniously conceived, a scheme." No device is needed former employee the following language taken from to give the banker protection for the merchandise. a comprehensive opinion on field warehousing should Public warehousing has been in existence for years arrest attention: and generally gives a degree of disinterested cus- "Actual change of possession means existing in todianship equal to the best system of field warefact, and truly and absolutely carried out, as ophousing. posed to formal, potential, virtual, or theoretical The custodian is an integral and vital part of any change. The proof required to show actual field warehousing operation. To say that he is change of possession is not measured by any bonded and is supervised by the warehouse company fixed set of rules. Dependence must be placed does not lend any more weight to the legality of his upon the facts and circumstances of each parappointment, nor does it establish that he is a proper ticular case; and usually the determination must person to serve as custodian. rest upon the finding of the court or the jury Bonding at its best is a relative term. But it might after hearing the evidence adduced on both be well to scrutinize the terms of the bond to see sides." what it covers, in whose favor it runs, under what conditions the holder of the receipt can recover, The question as to whether an employee who has whether the surety is financially responsible, whether been transferred from the rolls of the borrower, or one might be obliged to incur heavy expense or even storer, in a field warehouse to the payroll of the field a trip abroad in trying to recover, the maximum warehouseman is a proper person to serve as cusamount of recovery possible, and how many opera- todian for a warehouseman who would issue receipts tions of the same warehouseman are subject to the covering readily marketable staples which would be same bond. attached to bankers' acceptances as collateral, under It is always in order to investigate the custodian the Federal Reserve Board's rules was referred by carefully. What does he know about caring for the the Department of Agriculture to the Board of Govgoods in storage? What is his reputation? What ernors of the Federal Reserve System. The Board's has been his past connection? Has he been in the opinion appeared in the FEDERAL RESERVE BULLETIN employ of the storer in the warehouse, or the bor- of March 1933 as follows: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

518 FEDERAL RESERVE BULLETIN JUNE 1937 "The Federal Reserve Board has had occasion "The requirement of the law that such wareto consider the question whether receipts pro- house receipts must convey or secure title to posed to be issued by a warehouse company readily marketable staples obviously contemunder a certain field warehousing arrangement plates that the accepting bank shall have a would comply with the requirements of the Fed- lien on such staples which is valid and enforceeral Reserve Act and the board's regulations able against general creditors of the person for with reference to warehouse receipts securing whose benefit such acceptance credit is granted. bankers acceptances drawn to finance the stor- Among the requirements generally recognized age of readily marketable staples. as essential to the creation of a valid lien "The following are the principal facts upon through the pledge of warehouse receipts are which the board's consideration and conclusion that the warehouseman must take and maintain with respect to this question were based: It was actual physical possession of the goods and that proposed that premises, which were situated in his possession must be exclusive and unequivoseveral different localities should be leased to cal. Under the arrangement above described, the warehouse company for the purpose of ware- however, the actual possession of the goods would housing certain products owned by the lessor. be maintained by persons closely identified with It was understood that the warehoused products the owner of the goods and naturally subject would be properly segregated from other goods to his influence. Such a custodian, who might on the premises in separate buildings or in por- be regarded by the owner and his creditors as tions of buildings partitioned off for that pur- the employee of the owner rather than of the pose and locked with the warehouse company's warehouseman, probably would find it difficult own locks and that conspicuous signs giving to deny access to the premises of his former notice that the products thus segregated were in employer and the person to whom he looks for the custody of the warehouseman would be future employment. In the circumstances it is placed both inside and outside the premises. open to serious question whether the pledge of In the operation of these warehouses, however, receipts issued under the arrangement described the company was not to detail men already in would fulfill the requirements for the creation its employ to take charge of the leased premises, of a valid lien. but for this purpose was to transfer to its pay- "The requirement of the board's regulations roll employees of the lessor, paying them the that warehouse receipts securing bankers acsame salary that they were receiving from the ceptances be issued by a party independent of lessor at the time of the transfer. It was ex- the customer contemplates that the actual cuspected that these employees would be reemployed tody of the goods shall be maintained by an by the lessor at the close of the storage season independent and disinterested party, so that the or when the products had been removed from bank holding the warehouse receipt may be able storage; but the warehouse company was to have to identify and obtain possession of the goods the right to terminate their services at any time. and thus enforce its lien without any difficulty. These local custodians were to be the only repre- A lien on personal property is, of course, of no sentatives of the company at the warehouses; practical value unless such property can be but periodical audits were to be made by auditors found and identified when it becomes necessary sent from the district office of the company which to enforce the lien; and, if custody of the goods was located at a considerable distance from the is not maintained by a disinterested party, there proposed warehouses.1 The premises were to be is danger that the goods may be improperly leased at a nominal rental only and the lessor, released or disposed of. In the case under conin addition to paying a monthly storage fee, sideration, whatever may be the theoretical rewas to reimburse the warehouse company for quirements as to the control and custody of the all expenses, including the compensation of the goods by the warehouseman, it is obvious that custodians, the salaries and expenses of audi- in fact the warehouseman would not be indetors, and the costs of the bonds which were to pendent of the owner; because the warehouse be required of the custodians. A local custodian company would have to rely upon its local cuswas not to be permitted to issue warehouse todians and they would not be independent of receipts or to authorize releases, but these func- the owner. tions were to be performed at the district office "After carefully considering this question and of the warehouse company upon the basis of studying all information received on the subject, statements signed by the custodian and a repre- the Federal Reserve Board expressed the opinion sentative of the lessor. that bankers' acceptances issued against re- "In order for a banker's acceptance drawn to ceipts, such as those proposed to be issued under finance the domestic storage of readily market- the circumstances above described, are not eliable staples to be eligible for rediscount by gible for rediscount at Federal Reserve Banks; Federal Reserve Banks: (1) section 13 of the because it is doubtful whether such receipts Federal Reserve Act requires that it be 'secured comply with the requirement of section 13 of at the time of acceptance by a warehouse re- the Federal Reserve Act that warehouse receipts ceipt or other such document conveying or securing bankers' acceptances drawn to finance securing title covering readily marketable sta- the storage of readily marketable staples must ples'; and (2) Section XI of the board's Regu- convey or secure title to such staples, and belation A requires that it be 'secured at the time cause such receipts do not, in the board's judgof acceptance by a warehouse, terminal or other ment, comply with the requirement of section similar receipt, conveying security title to such XI of the board's regulation A that warehouse staples, issued by a party independent of the receipts securing such bankers' acceptances must customer.' be 'issued by a party independent of the cus- 1 Italics by author. tomer.' 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JUNE 1937 FEDERAL RESERVE BULLETIN 519 "In giving expression to this opinion, the in this field will make an honest effort to observe Federal Reserve Board did not undertake to the limitations laid down in well-considered cases, pass upon the merits of field warehousing in and not attempt short-cuts with a view to accommogeneral, either as conducted by the warehouse dating prospective clients or storers, it should selcompany in question or as conducted by any dom if ever be necessary to submit the question of other company; and the board's opinion relates validity of receipts to a court, or the facts to a jury. solely to warehouse receipts such as those pro- What lender can afford to take a chance of subposed to be issued under the facts of the ar- mitting his loan collateral to a jury to determine rangement as above described." whether the facts surrounding its creation give it legality. Under every set of circumstances care must always The easiest course might be to follow the suggesbe taken to avoid a set of facts which would cause tion of a warehouseman, or the wishes and appeals a court to comment as one court did in an outstand- of the banker's borrowing client. But the safest ing field warehousing case: course is to follow well-established legal principles. "The transaction is not changed by the form A banker has a higher duty than merely to loan of the agreement under which it is cloaked. money. He too is a trustee of the property and in- We are to look at the real purpose of the con- terests of others. His first duty is that of a faithful tract and not to the form or name given it by servant to his trust, and he can be faithful to that the parties." trust when he lends money on field-warehouse receipts as collateral only as he makes it his business In another case the United States Supreme Court to ascertain what actual methods of operation prestated: vail at the warehouse and how closely they square "When there is conscious control, the intent with well-established principles. to exclude, and the exclusion of others, with The experience of the Department of Agriculture access to the place of custody as of right, these is that the word of no interested party should be are all the elements of possession in the fullest taken on this subject. Repeatedly it has found insense. stances where storers, in spite of representations "We deal with the case before us only. No to the contrary, were carrying keys to the waredoubt there are other cases in which the exclu- houses, had free access to the warehouses, and opersive power of the so-called bailee gradually ated to all intents and purposes just as freely as tapers away until we reach those in which the they did before the alleged bailor-bailee relationship courts have held as a matter of law that there was undertaken. It has found cases where, in spite was no adequate bailment. So, different views of statements to the contrary, the custodian was an have been entertained where the owner has employee of the storer, or at best had been transundertaken to constitute himself a bailee by ferred temporarily to the pay roll of the warehouseissuing a receipt. We may concede, for pur- man with the definite understanding that when the poses of argument, that all the forms gone warehouse arrangement was terminated his services through in this case might be emptied of signi- with the warehouseman would cease. Such facts ficance by a different understanding between would be damaging evidence to submit to any jury. the parties, which the form intended to dis- Eternal vigilance is the price that the banker must guise." pay if he wants to feel reasonably certain of the safety of his commodity loans collateralized by field- In a most comprehensive case the court used this warehouse receipts. language: In the administration of the United States Ware- "Warehousing on the premises of the owner house Act, when the Department of Agriculture proposing to pledge his merchandise is effective came to consider field warehousing it was found when done in obedience to legal requirements; necessary to superimpose special regulations upon but when done only far enough to get the goods its regular commodity regulations that are applicrepresented by documents without really getting able to warehousemen who operate in the usual them stored, the documents are but scraps of manner of public warehousemen. paper. The term 'field warehousing' is not a To assist lending agencies in reaching a proper talisman to give dominion by enchantment. conclusion as to the collateral value of any field Taking exclusiveness of possession and control warehouse receipts which may be tendered them, as the criterion we find now and then a case the special regulations applicable to field warehousewhere it may be said as a matter of law that, men are appended herewith. through the field warehouse, open, exclusive, and unequivocal possession has passed construc- REGULATIONS SUPPLEMENTARY TO THE COMMODITY tively to a pledgee; and then again in other REGULATIONS UNDER THE UNITED STATES WAREcases we find that as a matter of law the posses- HOUSE ACT FOR FIELD WAREHOUSEMEN 1 sion of the warehouseman 'tapers away' to nothingness. Between these two extremes lies (Approved July 30, 1932) the aggregation of cases in which the facts are such that different men may with reason reach opposing conclusions. Cases of that character, DEPARTMENT OF AGRICULTURE, when tried by a jury, must be allowed to go Washington, D. C. under proper instructions to the jury, for their determination of the facts in controversy." By virtue of the authority vested in the Secretary of Agriculture by the United States warehouse CONCLUSION act, approved August 11, 1916 (39 U. S. Stat. L., p. The law on field warehousing is now so well de- 1 These regulations were issued as Service and Regulatory Anfined that if those who attempt to render service nouncements No. 136 (B. A. E.) 1932. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

520 FEDERAL RESERVE BULLETIN JUNE 1937 486), as amended, I, R. W. Dunlap, Acting Secretary or organization of any depositor, or closely interested of Agriculture, do make, prescribe, publish and give with any depositor in any business, shall be appublic notice of the following rules and regulations pointed as a custodian or an assistant custodian by to be known as the regulations supplementary to a licensed field warehouseman; nor shall any person the commodity regulations under the United States be appointed as a custodian or an assistant custodian warehouse act for field warehousemen, and to be in if he has resigned from the employ of any depositor force and effect until amended or superseded by for the purpose of accepting employment from the rules and regulations which may hereafter be made warehouseman at the warehouse. by the Secretary of Agriculture under said act. Par. 2. The compensation, or any part thereof, of In testimony whereof I have hereunto set my hand any custodian, assistant custodian, or any other emand caused the official seal of the Department of ployee of the warehouseman, if any there be, must Agriculture to be affixed, in the city of Washington, be paid by the warehouseman and not by any dethis 30th day of July, 1932. positor. The custodian or assistant custodians need R. W. DUNLAP, not be full-time employees of the warehouseman, but [SEAL] Acting Secretary. shall not be, under any conditions, part or full-time employees of any depositor of products in the ware- SECTION 1. Definitions.—For the purposes of these house. regulations, unless the context otherwise require, the Par. 3. Each person designated by a licensed field following terms shall be construed, respectively, to warehouseman as a custodian or an assistant cusmean: todian shall file with the bureau a statement, on a Paragraph 1. Commodity regulations.—Rules and form provided by the bureau for the purpose, setting regulations made under the act by the Secretary forth his qualifications and experience in warehouse for warehousemen storing certain designated agri- work, the occupation or business he has been engaged cultural products. in during the five years next preceding the date of Par. 2. Field warehouse.—A warehouse that is the statement, the names of his employers, if any, operated or is to be operated for the purpose of issu- during such 5-year period, the names of at least five ing warehouse receipts representing a disinterested persons who can vouch for his character and qualificustodianship of the products stored therein and cations for the position, and such other information which is leased from any person having a financial as the Secretary, or his designated representative, interest in the products. may require. Par. 3. Field warehouseman.—Unless otherwise Par. 4. No custodian shall accept instructions clearly indicated by the context, any person law- from anyone other than the warehouseman. fully engaged in the business of operating a field Par. 5. No custodian or assistant custodian shall warehouse as defined in paragraph 2. enter upon his duties as such at a licensed field Par. 4. Custodian.—A person appointed or desig- warehouse until he has been notified in writing by nated by a field warehouseman to supervise or man- the bureau that his appointment has been approved. age a field warehouse licensed under the act. SEC. 7. The warehouse space licensed or to be Par. 5. Assistant custodian.—A person appointed licensed shall be substantially separated from other or designated by a warehouseman to assist the cus- space and shall be kept securely locked or sealed in todian of a field warehouse in the supervision and accordance with section 15 of these regulations. All management thereof. keys to locks shall be kept in the possession of the SEC. 2. Nothing in these field warehouse regula- warehouseman or his authorized agent at all times. tions shall be construed to conflict with, or to au- In case there is any doubt whether all keys to the thorize any conflict with, or in any way impair or warehouse are in possession of the warehouseman limit, the effect or operation of the commodity regu- or his agents the warehouseman shall provide new lations issued by the Secretary for warehousemen locks and keys for the warehouse. storing any specified product or products, but these SEC. 8. It shall be the duty of a licensed field wareregulations shall be considered as supplemental to houseman to keep the licensed field warehouse seall such commodity regulations and to be effective curely locked at all times except when the wareas to all field warehouses and field warehousemen houseman, the custodian, or an assistant custodian operating under the act. is present, and no person other than the warehouse- SEC. 3. Applications for licenses to operate field man, the custodian, or an assistant custodian shall warehouses shall be made in accordance with the have access to the licensed warehouse or the products commodity regulations for warehousemen storing the stored therein except in the presence of and with the particular agricultural product or products stored consent of such warehouseman, custodian, or assistor to be stored in the field warehouse. ant custodian: Provided, That if any night watch- SEC. 4. Compliance with all the preliminary re- man in the employ of the owner of the building is quirements of the commodity regulations applicable required to enter the licensed warehouse under an to the agricultural product or products in question, insurance requirement and his only duties at the as well as these regulations, shall be prerequisite warehouse building are those of a night watchman to issuing a license to operate a field warehouse. he may be given a key to the warehouse for that SEC. 5. There shall be no close relationship, either purpose, if the approval of the bureau is first seby blood or marriage, between the field warehouse- cured and the watchman's service is fully provided man or his custodians and any depositor or the lessor for in the field warehouse lease agreement: Proof the field warehouse. vided further That the provisions of this section SEC. 6. Paragraph 1. No employee, either full or shall not apply in the case of warehouses where the part-time, of any depositor, nor any person who is a bin system is in effect as outlined in section 15 of close blood or other relative of any person occuping these regulations. The warehouseman shall at all a supervisory or directing position in the business times exercise absolute and complete control and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1937 FEDERAL RESERVE BULLETIN 521 dominion over the licensed warehouse and the prod- such leases, and (d) a clause prohibiting the canucts stored therein to the complete exclusion of all cellation of the lease or ejecting the warehouseman parties except as provided herein. so long as any receipt issued under the act and the SEC. 9. No misleading name or designation shall regulations is outstanding. be applied to any field warehouse licensed under the SEC. 14. A license to conduct a field warehouse act, but in every case the name shall indicate that under the act shall not be issued, or if issued, shall the warehouse is being operated as a public ware- not be allowed to remain in effect, if any depositor house by the warehouseman as lessee. agrees or has agreed with the warehouseman to in- SEC. 10. Paragraph 1. Before a license to conduct demnify him against loss due to failure of the warea field warehouse is granted under the act, the ware- houseman to exercise such care of the products in houseman shall file with the bureau, in accordance his custody as a reasonably prudent owner would with the requirements of the commodity regulations, exercise or as the warehouseman is required to exera copy of his rules and a schedule of charges; and, cise under the act and regulations. in addition, he shall file copies of all contracts and SEC. 15. In the case of warehouses where approved agreements entered into by and between him and storage bins have been erected and such bins can be any depositor or the lessor of the field warehouse sealed with seals furnished by the department for which in any way relate to the establishment, opera- the purpose, the bins may be licensed and the detion, management, or payment of expenses connected positors may, with the consent of the warehouseman, with the operation of the warehouse. If there are have access to such bins for the purpose of placing any agreements or understandings between the lessor goods therein before the seals are affixed and before of the warehouse and the lessee with respect to any warehouse receipts are issued by the warehouseman, of the aforementioned that have not been reduced or for the purpose of removing goods therefrom after to writing, the warehouseman shall file with the the outstanding receipts for all goods in such bin bureau a written statement setting forth the sub- or bins have been surrendered to and cancelled by stance of such verbal agreements and understand- the warehouseman, and the warehouseman or his ings. custodian, or assistant custodian, has broken the Par. 2. All warehouses licensed under the act seals. Under no circumstances shall anyone other must be operated as public warehouses, and no rules than the licensed warehouseman, the custodian, asor schedules of charges filed by any warehouseman sistant custodian, or duly appointed employees of applying for a license under the act shall be ap- the Department of Agriculture in the performance proved by the Secretary, or his designated represen- of their official duties, affix any seals to a licensed tative, if it is not clear that the requirements of sec- bin or remove a seal therefrom. Where bins are tion 13 of the act can and will be met. licensed no receipts may be issued for products SEC. 11. Every receipt, whether negotiable or non- stored in any bin until after the seals have been negotiable, issued for products stored in a field ware- affixed, and no seals may be broken for the purpose house, shall, in addition to complying with the re- of delivering the products until the receipts covering quirements of section 18 of the act and regulation such products have been surrendered and canceled. 4 of the applicable commodity regulations, embody Seals may be broken to permit inspecting and reawithin its printed terms a statement that the ware- sonably sampling of the goods; but such work must houseman is lessee of the warehouse. be done by the licensed warehouseman, the custodian, SEC. 12. Warehouse receipts for products stored or an assistant custodian, and after inspecting or in a field warehouse licensed under the act shall be sampling new seals shall be affixed to the bin. issued in the town or city where the warehouse is SEC. 16. Paragraph 1. Each licensed field warelocated, except that where two or more licensed field houseman shall, during the period of his license, warehouses are operated by a warehouseman receipts maintain suitable signs on the licensed property in for all such warehouses may be issued from a central such manner as to give ample public notice that point, provided such central point is not more than such property has been leased by the warehouseman 25 miles distant from the farthest warehouse. In and is controlled and operated by him. Such signs cases where receipts are issued from central points must be of such size and be so affixed to the outside the warehouseman shall, when requested by depart- of each licensed building, and at appropriate places ment representatives, provide transportation for within the building, as to attract the attention of and such representatives, when engaged in regular in- give notice to the public as to the real tenancy, and spection work, to and from such warehouses. must be placed at each point of entry to and exit SEC. 13. No field warehouse license shall be issued from the licensed space. by the Secretary, or his designated representative, Par. 2. Such signs shall include the following: unless the lessee is wholly disinterested with respect (a) The name and address of the licensee, (b) the to depositors and the application is supported by name of the warehouse, (c) the license number of the original lease and one copy, dated and signed by the warehouse, (d) a statement that the warehousethe contracting parties, and embodying the follow- man is lessee, and (e) the words "Public Wareing: (a) A definite period of time not less than one house." year after the date of execution, (b) a description Par. 3. Such other wording or lettering as is not of the exact space leased to the field warehouseman inconsistent with the purpose of the act and these and a statement that all of such space is to be cov- regulations and is approved by the bureau may ered by the license, if issued, and (c) evidence that appear in the sign or signs. said lease has been duly recorded in the county Par. 4. The warehouseman shall not permit signs where such warehouse is located, except where there to remain on his licensed property which might lead is a statutory inhibition against the recording of to confusion as to the tenancy. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

522 FEDERAL RESERVE BULLETIN JUNE 1937 REVISED INDEX OF FREIGHT-CAR LOADINGS The Board's monthly index of railroad are estimated from the weekly data by profreight-car loadings has been revised for rating the figures for overlapping weeks acthe period from 1919 to date. New seasonal cording to the number of working days falladjustment factors have been computed for ing in each month. Daily averages of these each class of freight and the method of com- monthly figures are computed and are exbining indexes for the several classes into an pressed as percentages of the 1923-1925 index for the total has been altered. average. The total index is obtained by The principal changes in seasonal varia- weighting the indexes for individual classes tion during recent years have been an in- on the basis of revenue data compiled by the crease in the proportion of a year's freight Interstate Commerce Commission. traffic that occurs in the relatively slack In computing the daily averages, allowwinter months and a decrease in the propor- ance is made for Sundays and the following tion in the late summer and autumn. Allow- holidays: New Year's Day, Washington's ance for these changes has lowered the level of Birthday (a half day), Memorial Day (a the total adjusted index during the winter and half day), Independence Day, Labor Day, raised the level from August to October. The Thanksgiving Day, and Christmas. The most important effect of the change in the allowance for Memorial Day was reduced method of combining the indexes for commod- from a full day to a half day in compiling ity classes has been to make the decline in the revised figures. FREIGHT-CAR LOADINGS PER CENT 1923-25 AVERAGE = 100 PER CENT 130 130 •i 120 wi 110 110 : \ ,: 100 100 ." • / \ : 90 v?. : u1/ H • /! \ Af RO \r 80 70 •' = -rr\ /\?vA fin — Ajjusted for seasDnal varation Without seasona adjustment /! 60 50 50 40 40 1919 1920 1921 1922 1923 1924 1925 1926 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 the total index from 1929 to 1933 larger than Seasonal adjustment factors.—Seasonal adthat indicated by the former index and the justment factors were computed for the inexpansion since that time also more marked. dexes for commodity classes by the ratio-to- The revised index of total freight-car load- twelve-month moving average method genings is shown in the chart. Indexes for the erally used by the Board. In seven of the total and for individual classes of freight, eight series ratios to freehand curves were both adjusted for seasonal variation and used to supplement the ratios to moving without seasonal adjustment, are given in averages.1 Table I and the seasonal adjustment factors Changes during recent years in the seaare shown in Table II. sonal characteristics of these individual The indexes are based on weekly data of the Association of American Railroads for 1 See FEDERAL RESERVE BULLETIN for December 1936, pp. 952- 953, for discussion of the use of freehand curves in the revision of eight commodity classes. Monthly loadings seasonal factors for employment in manufacturing1 industries. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

523 JUNE 1937 FEDERAL RESERVE BULLETIN series have been large. Shipments of miscel- inasmuch as freight rate changes were small laneous freight, which is the most important between 1923 and 1928. The following table class, have recently shown a smaller seasonal shows for the eight classes of freight in the decline during December and January than 1923-1925 base period the percentages of in earlier years and a less marked seasonal total revenue, used as weight factors in the peak in the autumn. During recent years revised index, and the percentages of total coal loadings in February and March have loadings, used in deriving the index formerly increased relative to loadings in other published. months. Changes in the seasonal characteristics of most other series also have been large. For freight-car loadings as a whole Percent Percent of total of total the amplitude of the seasonal movements has Class of freight revenue cars (estimated loaded been smaller in recent years than in earlier for (1923-1925) years. 1923-1925) Method of weighting commodity classes.— Grain 6.5 4.8 Livestock.. _ _ _ _ 2.6 3.5 In deriving the total index formerly pub- Coal 21.0 18.0 lished by the Board, indexes for commodity Coke 0.8 1.3 Forest Products - 8.6 7.4 classes were combined solely on the basis of Ore 2.2 4.0 the number of loadings in each class. In the Merchandise, l.c.l.. 10.6 25.3 Miscellaneous.- . . _ . . _._ 47.7 35.7 revised index an attempt was made to obtain Total 100. 0 100.0 weights that would approximate the general activity entering into the transportation of each class of freight as the basis for com- The principal changes in the relative imbining the class indexes. This involved con- portance of the various classes are a reducsideration not only of the number of cars but tion in the weight given merchandise in lessalso of such factors as the number of tons, than-carload lots and an increase in the length of haul, and loading and unloading weight of miscellaneous freight, which inactivity per car. After study of various cludes most manufactured commodities and methods the proportion of revenue received other commodities of considerable value. by the railroads for shipping each class of The relatively smaller importance of lessfreight was chosen as being better than any than-carload freight on a revenue as comother data available for measuring the rela- pared with a carload basis is in part a reflective amount of activity in the various classes tion of low tonnage per car and in part a rein the base period. flection of duplications in reporting the num- Statistics of revenue by commodities were ber of cars loaded. first published by the Interstate Commerce Railroad shipments of merchandise in less- Commission for 1928 and figures for that than-carload lots have been particularly afyear, regrouped to correspond as closely as fected by truck competition and currently possible with the eight commodity classes are at a level lower, relative to the 1923-1925 of the Association of American Railroads, average, than most other classes of freight. were used as the basis for estimating reve- Consequently, reducing the weight of this nue by classes in the 1923-1925 base period. class has raised the current level of the re- It is believed that the revenue data for 1928 vised total index above that shown by the were reasonably accurate for this purpose index formerly published. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

524 FEDERAL RESERVE BULLETIN JUNE 1937 TABLE 1.—INDEXES OF FREIGHT-CAR LOADINGS, BY CLASSES [Index numbers; 1923-25 average=100. The terms "adjusted" and "unadjusted" refer to adjustment for seasonal variation.] Grain Total Coal Coke a p n r d o d g u r c a t i s n Livestock p F ro o d r u es c t ts Ore l M an is e c o e u l s - Me d r i c s h e an- Year and month ju A s d te - dju U a s d t n e - - dju A st d e - d ju U a s d i n - - A st d e - dju U a s d t n e - - dju A s d te - dju U a s d t n e - - dju A st d e - dju U a s d t n e - - d ju A s d ted ju U a s d n te - - d J .[u A s d te - dju U a s d n te - - d ju A s d te - d ju U a s d t n e - - d J -j1u A s d t - edju U a s n d t - - ed 1919 100 97 1920 91 112 104 77 91 82 120 1921 78 89 51 96 87 67 45 87 1922 85 82 78 103 95 78 79 94 1923 100 106 115 95 103 101 116 96 1924 95 84 108 102 99 83 99 1925 103 99 101 97 95 101 100 106 105 1926 107 111 110 99 93 109 109 105 1927 104 103 88 99 90 94 108 105 1928 104 86 105 89 95 111 104 1929 107 102 100 82 113 115 105 1930 92 78 95 75 83 99 97 1931 74 53 85 68 43 78 87 1932 55 36 69 55 10 55 72 1933 58 48 70 52 37 58 67 1934 62 69 62 65 1935 64 66 41 64 1936 75 75 44 66 1919—January 82 85 105 115 141 37 February __. 73 69 105 101 164 43 March 87 76 87 123 38 April 105 81 86 119 52 May 87 74 97 89 96 115 June 77 66 90 82 99 166 July 84 94 100 102 186 August 103 104 95 83 89 106 97 67 114 September . 113 118 90 88 87 105 108 103 182 October 110 126 81 83 85 91 120 125 November _ 65 70 84 92 85 89 106 126 75 December— 83 95 81 86 84 84 104 110 33 1920—January 102 115 78 84 81 84 99 109 107 28 February.. - 83 106 104 76 83 81 77 92 119 31 March 88 114 105 87 96 80 71 97 129 40 April 77 107 90 91 86 76 58 89 78 110 48 May 87 107 96 93 87 78 66 90 120 143 June 92 111 108 105 95 84 73 84 113 189 July 98 117 115 111 100 69 77 78 108 198 72 August 100 117 118 138 122 73 81 118 200 95 82 September. 103 113 118 135 133 80 96 120 213 86 October 104 111 127 128 131 79 86 100 136 191 85 November _ 95 117 127 114 124 74 78 108 146 120 82 December._ 83 123 126 101 107 76 76 120 40 78 1921—January 72 89 100 77 91 22 72 February- 71 88 87 67 74 81 80 21 78 March 69 78 72 46 51 78 78 54 17 85 April 70 90 76 45 43 93 71 82 65 34 15 87 May 76 99 46 43 97 83 " 80 51 62 June 78 91 43 39 101 87 81 45 76 July 79 87 37 33 110 122 73 60 44 81 August 83 86 87 42 37 107 128 80 62 62 48 82 September. 92 96 43 42 102 124 92 66 66 43 76 94 October 99 113 53 54 99 107 108 71 72 39 55 96 November, 85 92 50 55 80 84 96 69 70 26 21 93 December.. 75 76 55 58 92 92 70 63 45 .14 1922—January 85 95 57 62 103 107 70 67 43 11 60 85 February- 111 110 60 66 117 111 67 70 42 11 63 March 120 111 64 71 99 87 70 72 44 14 72 April 49 41 68 67 91 70 74 77 56 25 78 May 52 47 77 73 108 91 87 80 83 37 46 84 June 56 53 86 78 101 85 87 81 86 81 138 90 July 45 44 91 81 103 111 82 81 78 93 170 91 97 August 55 56 78 69 100 120 88 79 79 100 170 91 93 September - 96 100 75 73 94 113 108 80 80 82 140 97 October 101 97 109 85 86 101 110 119 82 81 86 120 100 November. 100 104 112 98 105 108 116 118 87 87 94 77 96 December.. 91 108 111 105 112 112 114 104 91 82 27 82 90 1923—January 91 102 114 109 118 101 105 104 100 95 108 28 82 February. __ 97 90 107 108 114 126 94 95 93 97 25 95 84 March 100 95 111 105 115 126 100 102 91 103 110 34 97 93 April 105 97 119 100 130 130 105 82 105 92 101 106 110 52 100 96 May 102 100 115 103 133 125 88 73 101 92 101 105 116 159 99 100 June 102 102 113 106 136 123 91 75 100 89 103 107 120 204 97 99 July 101 103 112 109 135 122 93 96 107 93 105 101 120 220 96 99 August 101 106 108 109 126 111 93 111 107 100 105 105 121 205 97 101 97 September _ 110 101 105 116 114 93 112 107 121 104 104 116 196 97 110 102 October 110 99 109 98 98 95 106 104 126 103 102 112 152 97 112 102 November. 104 103 91 95 108 102 121 104 103 121 95 98 104 102 December.. 96 91 101 105 111 95 85 97 28 96 84 95 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

525 JUNE 1937 FEDERAL RESERVE BULLETIN TABLE 1.—INDEXES OF FREIGHT-CAR LOADINGS, BY CLASSES—Continued [Index numbers; 1923-25 average=100. The terms "adjusted" and "unadjusted" refer to adjustment for seasonal variation.] Grain Total Coal Coke a p n r d o d g u r c a t i s n Livestock pr F o o d r u es c t ts Ore l M a i n s e c o e u l s - Me d r i c s h e an- Year and month ju A st d e - dju U a s d t n e - - d ju A s d t - ed ju U a s d t n e - - dju A st d e - dju U a s d n te - - d ju A s d t - edju U a s d t n e - - dju A s d t - ed ju U a s d n te - - d ju A s d t - ed ju U a s d t n e - - dju A s d i - edju U a s n d - - i A st d e - d ju U a s d n te - - dju A s d t - ed ju U a s d n te - - d 1924—January_-- 92 103 115 94 102 97 100 103 110 100 95 85 22 96 91 Febrllary_- 108 110 97 108 112 107 103 100 107 113 95 25 100 100 96 March 97 93 100 110 100 87 102 91 106 112 96 30 96 99 101 April 95 89 84 70 91 91 103 81 100 88 101 105 100 53 96 101 May 93 91 85 76 79 74 102 84 102 93 98 102 93 135 92 99 June 92 91 87 68 61 81 102 92 94 89 152 91 97 July 92 93 85 66 59 101 103 91 87 83 146 94 97 97 August 95 100 88 67 59 110 132 92 95 95 76 129 97 102 99 98 September 100 112 102 106 75 73 122 150 114 96 96 76 125 99 115 99 104 October. __ 102 114 99 109 80 129 145 123 98 98 108 102 118 100 104 November 101 106 99 108 86 112 123 104 123 100 99 50 101 107 100 103 December. 101 93 102 107 96 101 100 105 109 115 100 94 101 87 101 97 1925—January. _. 103 95 105 117 104 112 106 109 102 109 104 99 26 102 85 102 95 February.. 102 95 96 99 97 110 97 92 97 93 106 112 113 29 104 92 105 101 March 99 95 87 84 94 102 93 80 93 81 105 111 102 31 104 100 103 105 April 102 96 95 80 90 90 91 71 96 84 103 107 140 74 104 103 103 105 May 101 99 99 84 79 97 80 89 81 100 105 107 163 103 103 103 104 June 102 100 99 85 77 95 79 92 79 101 95 162 105 106 105 104 July 103 104 104 86 77 93 96 94 81 94 95 166 106 108 104 104 August 106 111 112 112 92 81 118 97 90 98 160 106 113 106 105 September. 102 116 97 101 100 98 116 92 104 99 100 150 107 125 106 111 October 101 114 97 106 112 112 99 98 126 97 97 126 106 122 105 109 November. 105 110 99 109 127 132 100 110 93 109 98 95 120 85 108 114 106 109 December. 108 97 103 132 140 107 112 97 101 101 110 30 114 97 106 101 1926—January... 103 94 95 106 137 148 99 101 93 97 91 101 25 108 90 106 February— 104 96 97 101 131 151 97 93 90 85 99 105 102 27 108 95 106 102 March 104 99 103 101 110 117 98 85 93 82 99 105 98 27 105 101 105 107 April 105 99 111 94 103 102 102 80 93 82 100 104 73 39 105 104 105 107 May 107 105 106 95 104 97 103 85 91 83 100 105 89 139 111 112 106 107 June 108 106 112 99 104 104 88 94 81 101 103 104 178 110 111 105 105 July 109 110 114 104 106 116 123 95 83 99 95 110 193 110 114 105 105 August 106 113 109 108 106 94 99 119 94 88 97 97 116 198 108 116 105 105 September. 107 122 115 120 106 104 88 108 100 115 101 120 199 109 128 105 110 October. __ 109 124 116 129 108 108 99 112 92 119 99 127 171 111 130 105 110 November. 110 115 126 139 105 109 93 98 91 107 93 116 81 110 113 105 108 December. 109 99 121 129 98 103 95 97 92 94 100 26 110 92 106 101 1927—January... 107 97 113 126 93 100 95 96 95 102 24 109 90 105 98 February.. 108 101 118 123 89 104 97 94 84 111 110 96 106 102 March 108 104 119 117 97 101 97 83 81 103 110 106 105 106 April 106 100 105 95 94 99 79 82 118 62 110 110 104 106 May 105 104 102 93 88 102 85 86 154 110 112 105 106 June 104 103 101 93 86 100 87 81 168 110 113 104 104 July 103 104 97 85 91 83 94 103 79 168 109 114 105 104 August 104 110 102 100 89 80 99 119 84 159 108 117 105 106 September. 104 118 101 107 85 83 106 131 98 147 108 128 104 110 October 101 116 95 108 77 77 103 117 116 122 107 125 104 109 November. 99 102 89 99 76 77 101 102 104 47 106 107 103 106 December. 90 97 79 82 97 87 22 104 85 104 1928—January ___ 103 94 105 85 106 106 93 99 22 109 105 98 February __ 102 95 93 98 83 105 103 102 97 21 109 94 105 101 March 103 98 95 92 85 116 100 96 84 84 22 109 105 104 105 April 101 97 83 84 83 105 87 78 51 27 108 109 104 105 May 104 103 89 87 84 103 87 79 75 117 111 114 104 105 June 101 101 97 83 85 80 84 74 88 75 96 171 109 112 104 104 July 104 106 97 85 83 75 98 116 83 70 94 166 112 117 105 104 August 105 111 98 94 85 77 103 124 84 75 96 164 113 121 104 104 September. 106 121 100 107 86 109 133 90 105 102 168 113 134 104 109 October. __ 107 122 101 117 88 106 117 85 113 112 151 114 133 104 109 November. 109 111 103 114 90 91 121 117 84 98 120 84 115 115 104 107 December. 107 95 97 105 91 110 106 87 93 114 27 116 95 105 99 1929—January. __ 108 97 107 120 95 103 104 102 90 106 23 115 104 97 February.. 109 101 113 120 99 114 104 102 79 104 25 115 104 101 March 106 100 90 100 104 105 90 71 113 30 117 112 105 106 April 108 103 99 100 99 77 80 148 78 117 119 106 107 May 107 107 100 109 104 82 77 120 186 116 119 105 106 June 109 110 102 109 101 105 95 70 110 196 117 123 105 105 July 108 112 100 87 112 102 105 140 70 112 202 117 123 106 105 August 110 116 100 96 110 98 110 132 73 112 194 119 128 105 106 September. 108 123 104 111 104 102 96 111 96 111 183 117 138 105 111 October 105 120 114 100 100 92 96 109 109 148 115 134 105 110 November. 102 103 109 91 85 109 71 108 108 104 106 December. 101 90 102 113 98 90 22. 107 87 101 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

526 FEDERAL RESERVE BULLETIN JUNE 1937 TABLE 1.—INDEXES OF FREIGHT-CAR LOADINGS, BY CLASSES—Continued [Index numbers; 1923-25 average=100. The terms "adjusted" and "unadjusted" refer to adjustment for seasonal variation.] Total Coal Coke a p n r G d o r d g a u r in c a t i s n Livestock pr F o o d r u es c t ts Ore l M an is e c o e u l s - Me d r i c s h e an- Year and month ju A st d e - d ju U a s d t n e - - d ju A s d te - d ju U a s d n te - - dju A st d e - d ju U a s d n te - - d ju A s d te - d ju U a s d n t - e - d ju A s d te - d ju U a s d n te - - d ju A st d e - d ju U a s d n te - - d ju A s d te - d ju U a s d n t - e - d ju A st d e - d ju U a s d n t - e - d ju A s d te - dju U a s d n te - - d 1930—January 100 90 • 103 115 88 95 92 88 79 84 74 65 98 22 107 86 101 94 February __ 100 93 92 98 82 96 98 96 80 77 77 80 93 22 110 95 102 98 March 96 91 82 78 79 82 97 84 80 69 76 80 90 23 107 102 100 101 April..._ _ 97 94 91 76 84 83 97 84 77 72 76 79 86 39 105 108 100 101 May 95 95 90 79 83 80 95 82 76 70 69 73 90 138 103 106 98 99 June 94 94 90 77 84 78 97 90 76 64 65 68 90 160 100 106 97 98 July 91 95 89 78 80 72 95 131 72 61 59 57 86 161 98 103 95 95 August 91 96 87 83 77 68 108 129 71 64 55 57 81 145 98 105 95 95 September. _ . 88 100 84 90 73 70 92 104 71 84 55 58 77 128 95 112 95 99 October 86 98 85 99 73 73 86 88 72 96 53 54 71 96 92 107 93 97 November 84 86 85 94 69 69 87 82 72 84 50 49 68 40 89 89 92 94 December.. 82 74 81 90 68 74 91 80 72 73 51 43 63 15 87 71 91 86 1931—January... 81 73 80 90 67 74 94 87 72 76 51 45 61 13 85 69 90 83 February 79 73 74 79 60 73 92 90 71 67 48 49 60 15 85 73 90 87 March .... 79 74 76 74 62 65 93 82 70 59 45 47 57 15 84 79 89 90 April... 79 77 78 65 60 57 89 80 69 65 43 45 48 20 84 87 90 91 May 78 77 76 66 57 55 89 78 68 62 43 46 30 44 84 87 89 90 June _ 76 76 74 63 48 45 84 79 65 55 41 43 44 77 81 86 88 89 July 75 77 74 64 46 41 88 121 66 56 39 38 49 92 79 83 88 87 August . 72 75 72 68 44 38 79 95 69 64 37 38 48 90 76 81 86 87 September _ 68 76 69 74 44 42 74 83 64 76 35 37 45 79 70 81 84 89 October 68 77 71 83 45 45 83 83 65 86 33 33 37 50 70 81 83 87 November 67 68 65 72 46 46 85 80 69 80 32 31 30 16 70 70 83 85 December. . 65 59 62 70 46 50 72 62 66 66 30 25 39 10 69 57 81 77 1932—January 62 56 59 66 41 47 73 66 63 65 29 25 34 8 65 53 80 75 February _ 60 57 60 66 40 52 78 74 62 57 27 27 29 7 62 53 78 76 March 58 56 66 67 46 48 69 62 60 49 27 27 25 7 57 54 76 76 April... 57 55 62 52 35 31 74 66 60 57 26 27 22 9 56 58 74 75 May 52 51 49 42 27 26 69 62 55 51 24 26 5 7 54 56 73 73 June 49 49 45 39 26 24 60 57 53 44 22 23 6 10 52 56 70 70 July.. 49 50 51 43 25 21 61 84 53 45 21 21 9 16 50 52 68 68 August. __ 51 52 55 49 27 23 69 83 53 51 21 21 10 18 50 53 68 68 September 54 60 60 64 33 31 74 83 53 65 23 25 9 16 54 62 69 72 October 57 65 66 77 40 40 72 72 52 70 25 26 11 16 57 66 69 72 November 56 57 65 72 41 41 67 63 50 59 23 23 13 56 56 68 70 December 54 51 66 74 44 48 67 57 51 50 22 18 19 5 52 45 67 64 1933—January 53 50 57 64 38 45 66 59 51 53 23 20 22 5 54 46 68 65 February 52 50 62 72 39 52 60 56 51 46 20 19 20 5 52 44 66 64 March 48 46 50 52 34 36 65 59 49 39 20 21 22 5 48 45 63 63 April... 53 51 54 45 33 28 85 77 53 50 23 24 21 9 52 54 64 65 May.. 55 54 54 46 34 32 88 79 53 49 28 29 15 21 57 59 67 67 June 61 61 66 56 48 45 86 84 56 46 35 36 20 34 62 66 68 68 July.... 66 67 79 67 66 56 71 99 53 46 39 39 35 66 66 68 70 70 August 64 64 83 73 67 56 54 64 51 50 36 38 51 95 62 64 69 69 September ... 60 67 69 73 63 59 62 69 51 63 33 36 59 103 60 68 68 71 October 59 67 64 72 55 55 64 64 51 68 33 34 50 74 60 70 67 70 November 60 61 66 72 54 54 71 66 51 60 33 33 33 18 61 61 66 68 December. _ 60 56 63 70 54 60 68 59 49 48 31 26 32 8 64 56 67 64 1934—January __ 62 58 68 77 57 67 73 65 52 53 30 26 37 8 64 55 68 65 February 65 62 73 86 64 86 71 65 53 46 32 31 34 8 68 58 67 65 March __ _ 65 64 78 83 69 72 70 64 50 40 32 33 39 10 67 64 67 67 April. _ 63 60 69 58 57 48 64 57 53 48 32 33 45 19 66 68 66 67 May 64 63 71 61 59 57 67 61 54 49 33 35 42 58 67 70 66 66 June 64 64 68 58 60 56 79 78 56 46 32 34 51 86 67 71 65 65 July 62 62 66 56 45 38 69 95 79 70 30 30 44 83 64 65 65 65 August 61 62 65 57 43 35 71 85 96 96 29 31 39 73 63 65 64 65 September 60 67 66 69 47 45 68 76 81 104 29 32 36 64 62 70 64 67 October 59 65 63 69 45 45 66 66 61 83 30 31 28 42 61 70 63 66 November 59 60 65 71 43 43 63 60 55 64 30 29 25 14 62 63 63 65 December 60 57 68 77 48 52 66 57 52 51 31 26 33 8 62 55 64 61 1935—January 63 59 72 82 56 66 60 54 45 44 32 28 40 9 67 58 64 61 February ___ 66 62 69 81 51 68 63 57 44 37 37 36 41 10 73 62 65 63 March __ _ 65 63 73 77 48 50 63 58 42 34 34 35 45 11 69 67 65 65 April- 62 59 63 53 54 46 64 57 42 38 34 35 65 27 66 69 64 65 May..- 61 60 69 59 50 48 61 55 42 38 33 35 51 71 63 66 64 64 June 64 63 84 72 52 48 57 55 36 30 35 37 49 84 64 67 63 63 July.... 59 59 57 48 47 39 50 69 34 30 38 38 47 89 66 67 63 63 August 63 64 64 56 52 43 75 90 39 39 40 42 48 89 67 69 64 64 September 64 71 64 66 57 54 80 90 42 54 41 44 53 93 69 77 64 67 October. 68 75 70 77 62 62 76 76 45 63 41 43 55 82 73 82 64 67 November 68 69 68 74 63 63 73 69 42 51 40 39 67 37 74 76 64 66 December... 68 64 71 79 66 73 71 61 41 40 43 37 68 17 74 67 64 62 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

527 JUNE 1937 FEDERAL RESERVE BULLETIN TABLE 1.—INDEXES OF FREIGHT-CAR LOADINGS, BY CLASSES—Continued [Index numbers; 1923-25 average—100. The terms "adjusted" and "unadjusted" refer to adjustment for seasonal variation.] Total Coal Coke a p n r G d o r d g a u r in c a t i s n Livestock pr F o o d r u es c t ts Ore l M an is e c o e u l s - Me d rc is h e an- Year and month ju A st d e - dju U a s d t n e - - dju A st d e - d U ad ; n t - e - d jJuu A :s d te - d U a ; d n t - e - d Jju A s d te - dju U a s d n te - - d ju A s d te - d ju U a s d n te - - d ju A st d e - d ju U a s d n te - - d ju A st d e - d ju U a s d n te - - dju A s d te - dju U a s d n te - - dju A s d te - dju U a s d n te - - d 1936—January. __ 81 67 15 60 February.. 106 90 66 15 60 March 60 56 72 15 63 April 64 58 66 27 65 May 64 69 67 105 65 June 61 69 77 130 66 July 65 73 117 139 66 August 68 71 89 141 67 September 80 83 71 86 151 70 October. __ 90 87 69 90 134 November 93 96 73 133 73 December. 92 97 71 92 23 1937—January... 83 97 65 117 26 64 February.. 102 64 114 27 66 March 92 96 62 114 29 69 April 102 86 63 249 102 70 NOTE.—Basic data compiled by Association of American Railroads. Indexes for classes based on daily average loadings. Total index compiled by combining indexes for classes with weights derived from revenue data of the Interstate Commerce Commission. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

528 FEDERAL RESERVE BULLETIN JUNE 1937 TABLE 2.—FREIGHT-CAR LOADINGS: SEASONAL ADJUSTMENT FACTORS [Average for year=100] COAL Month 1919 1920 1921 1922 1923 1924 1926 1928 1930 1931 1932 1933 1934 1935 1936 January 112.0 112.0 112.0 112.0 112.0 112.0 112.0 112.0 112.0 112.0 112.0 112.0 112.0 112.0 114.0 114. 0 114.0 114.0 February 98.0 98.0 98.0 99.0 101.0 102.0 103.0 104.0 105.0 106. 0 107.0 107.0 107.0 110.0 118.0 118.0 118.0 118.0 March 92.0 92.0 92.0 93.0 95.0 96.0 97.0 98.0 98.0 97.0 95.0 95.0 97.0 102.0 106.0 106.0 106.0 106. 0 April 84.0 84.0 84.0 84.0 84.0 84.0 84.0 84.0 84.0 84.0 84.0 84.0 84.0 84.0 84.0 84.0 84.0 84.0 May 90.0 90.0 90.0 90.0 90.0 90. 0 90.0 90.0 90.0 90.0 89.0 88.0 87.0 86.0 86.0 86.0 86.0 86.0 June 97.0 97.0 97.0 96.0 94.0 92.0 90.0 89.0 87.0 86.0 86.0 85.0 85.0 85.0 85. 0 85.0 85.0 85.0 July 98.0 98.0 98.0 98.0 97.0 96.0 94.0 91.0 88.0 87.0 87.0 87.0 87.0 85.0 84.0 84.0 84.0 84.0 August 101.0 101. 0 101.0 101.0 101.0 100. 0 100. 0 99.0 98.0 96.0 96.0 96.0 94.0 90.0 88.0 88.0 88.0 88.0 September. __ 104.0 104.0 104.0 104. 0 104. 0 104.0 104.0 104.0 106. 0 107.0 107. 0 107.0 107. 0 107.0 104.0 104.0 104.0 104.0 October 114.0 114.0 114.0 112.0 110.0 110.0 110. 0 111.0 113.0 115.0 116.0 117.0 117.0 116.0 110.0 110.0 110.0 110.0 November. __ 108.0 108.0 108.0 108.0 108. 0 109. 0 110.0 111.0 111.0 111.0 111.0 111.0 111. 0 111.0 109. 0 109.0 109.0 109. 0 December... 102.0 102.0 102.0 103.0 104.0 105.0 106.0 107.0 108.0 109.0 110. 0111.0 112. 0 112.0 112.0 112.0 112.0 112.0 COKE Month 1919 1920 1921 1922 1923 1924 1925 1926 1927 1928 1929 1930 1931 1932 1933 1934 1935 1937 January 108.0 108.0 108. 0 108.0 108.0 108.0 108. 0 108.0 108.0 108.0 108.0 109. 0 112.0 115. 0 117.0 118.0 118.0 118.0 118.0 February. __ 110.0 110.0 110.0 110.0 111.0 112.0 114.0 115.0 116.0 116.0 116.0 117.0 122.0 129. 0 133.0 134.0 134.0 134.0 134.0 March . 110.0 110.0 110.0 110.0 110.0 110.0 108.0 106.0 104.0 104.0 104.0 104. 0 104.0 104. 0 104.0 104. 0 104.0 104.0 104.0 April 95.0 95.0 95.0 98.0 100.0 100.0 100.0 99. 0 99.0 99.0 99.0 98.0 95.0 88.0 84.0 84.0 84.0 84.0 84.0 May 94.0 94.0 94.0 94.0 94.0 94.0 94. 0 94.0 95.0 96. 0 96.0 96.0 96.0 96.0 96.0 96.0 96.0 96.0 96.0 June 90.0 90.0 90.0 90.0 90.0 90.0 90.0 92.0 93.0 93.0 93.0 93.0 93.0 93.0 93.0 93.0 93.0 93.0 93.0 July 90.0 90.0 90.0 90.0 90. 0 90. 0 90.0 90.0 91.0 91.0 91.0 90.0 88.0 86.0 85.0 84.0 84.0 84.0 84.6 August 88.0 88.0 88.0 88.0 88.0 88.0 88.0 89.0 90.0 90. 0 89.0 88.0 85.0 84.0 83.0 82.0 82.0 82.0 82.0 September.. 98.0 98.0 98.0 98.0 98.0 98. 0 98.0 98.0 98.0 98. 0 98.0 96. 0 95. 0 95.0 95. 0 95. 0 95.0 95. 0 95.0 October 102.0 102.0 102.0 101.0 100.0 100.0 100. 0 100. 0 100.0 100.0 100.0 100. 0 100.0 100. 0 100.0 100. 0 100.0 100.0 100.0 November.. 109. 0 109. 0 109.0 107.0 105.0 104.0 104. 0 104.0 102.0 101.0 100. 0 100. 0 100.0 100. 0 100. 0 100. 0 100.0 100.0 100.0 December.. 106. 0 106.0 106.0 106. 0 106. 0 106. 0 106.0 105.0 104.0 104.0 106.0 109. 0 110.0 110.0 110.0 110.0 110.0 110.0 110.0 GRAIN Month 1920 1921 1922 1923 1924 1925 1926 1932 1933 1934 1936 1937 January 104.0 104.0 104.0 104.0 104.0 103.0 103.0 102.0 101.0 100. 0 98.0 95.0 92.0 90.0 90.0 90.0 90.0 90.0 90.0 February. _. 95.0 95.0 95.0 95.0 95.0 95. 0 95.0 96.0 97.0 98.0 98.0 98.0 98.0 96.0 93.0 92.0 91.0 91.0 91.0 March... 88.0 88.0 88.0 88.0 88.0 87.0 86.0 86.0 86. 0 86.0 86.0 87.0 88.0 89.0 90.0 91.0 92.0 92.0 92.0 April 77.0 77.0 77.0 77.0 78.0 78.0 78.0 79.0 80.0 81.0 82.0 86.0 90.0 90.0 90.0 89.0 89.0 89.0 89.0 May 85.0 85. 0 85.0 84.0 83.0 83.0 83.0 83.0 83.0 83.0 84.0 86.0 88.0 90.0 90.0 90.0 90.0 90.0 90.0 June 86.0 86.0 86.0 84.0 82.0 82.0 83.0 85.0 87.0 89.0 91.0 93.0 94.0 95.0 97.0 98.0 98.0 98.0 98.0 July '_ 111.0 111. 0 111. 0 108. 0 104. 0 103.0 103. 0 106.0 110. 0 118.0 134. 0 138.0 138.0 138.0 138.0 138.0 138.0 138.0 138.0 August 120.0 120. 0 120.0 120. 0 120.0 120.0 120.0 120.0 120.0 120.0 120. 0 120.0 120. 0 120.0 120.0 120.0 120.0 120.0 120.0 September.. 121.0 121.0 121. 0121.0 121.0 123.0 1.23. 0123. 0 123.0 122.0 116.0 113.0 112.0 112.0 112.0 112.0 112.0 112.0 112.0 October 108. 0 108.0 108.0 109. 0 111.0 112.0 112.0 113.0 113.0 UO.O 105.0 102. 0 100.0 100.0 100.0 100.0 100.0 100.0 100. 0 November.. 105.0 105. 0 105. 0 108. 0 UO.O 110.0 110.0 105. 0 101.0 97. 0 94.0 94.0 94.0 94.0 94.0 94.0 94.0 94.0 94. 0 December 100.0 100.0 100. 0 102. 0 104. 0 104. 0 104.0 102.0 99.0 96.0 92.0 88.0 86.0 86.0 86.0 86.0 86.0 86.0 86.0 LIVESTOCK Month 1919 1920 1921 1922 1923 1924 1925 1926 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 January 110.0 110.0 110.0 109.0 107. 0 107.0 107. 0 107.0 107.0 107.0 106. 5 106.0 105.5 104.5 103. 5 101.5 98.0 98.0 98.0 February 96.5 96.5 96.5 96.5 96.5 96. 5 96.0 95.5 95.5 95.5 95.5 95. 5 94.5 92.5 90.0 86.5 83.0 83.0 83.0 March 88.5 88.5 88.5 88.5 88.5 88.5 87.5 87.5 87.5 87.5 86.5 85.5 84.0 81.5 80.0 80.0 80.0 80. 0 80.0 April 88.0 88.0 88.0 88.0 88.0 88.0 88.0 88.0 89.0 90.5 93.0 94.0 94.0 94.0 94.0 92.0 92.0 92.0 92.0 May 92.0 92.0 92.0 92.0 91.5 91.0 91.0 91.0 91. 0 91.0 91.5 92. 0 92.0 92.0 92.0 90.0 90.0 90.0 90.0 June 90.5 90.5 90.5 90.0 88.5 87.5 86.5 86.5 86. 5 86.0 85.0 84.5 84.0 83.5 83.0 82.0 82.0 82.0 82.0 July 86.0 86.0 86.0 86.0 87.0 87. 0 87.0 87.0 86.0 85.0 84.0 84.0 84.0 85.0 87.0 88.0 88.0 88.0 88.0 August 91.5 91.5 91.5 92.0 93.0 93.0 93.0 93.0 92.5 90.0 90.0 90.0 93.5 96.0 98.5 100.0 100.0 100.0 100.0 September 110. 0 110.0 110.0 111.0 113.0 113.0 113.5 115.0 115. 5 116.5 117.0 117.5 118.0 122.0 124.0 128.5 128.5 128.5 128.5 October 122.0 122.0 122.0 122.0 122.0 124.0 128.5 130.0 131.0 132. 5 133.0 133.0 133. 0 133.5 134.0 137.5 140.5 140.5 140.5 November 119.0 119.0 119.0 119.0 119.0 118. 5 117. 0 117.0 117.0 117.0 117.0 117.0 117.0 117.0 117.0 117.0 121.0 121.0 121.0 December. „.. 106.0 106.0 106.0 106. 0 106. 0 106. 0 105.0 102. 5 101.5 101.5 101. 0 101.0 100.5 98.5 97.0 97.0 97.0 97.0 97.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

529 JUNE 1937 FEDERAL RESERVE BULLETIN TABLE 2.—FREIGHT-CAR LOADINGS: SEASONAL ADJUSTMENT FACTORS—Continued [Average for year = 100] FOREST PRODUCTS Month 1921 1922 1923 1924 1925 1926 1927 1928 1929 1931 1932 1933 1935 1936 1937 January 95.0 95.0 95.0 95.0 95.0 95.0 95.0 94.0 93.5 !. 590.0 89.0 89.0 1.0 88.0 88.0 88.0 88.0 88.0 February 104.5 104. 5 104.5 104. 5 104.5 105. 5 106. 0 106.0 105. 5 105.0 104. 0 103.5 102.0 100.0 98.0 97.0 97.0 97.0 97.0 March 102. 5 102.5 102. 5 103. 0 104.5 106. 0 106.0 106.0 105.0 104.5 104. 5 104.5 103.5 102. 5 102.0 102.0 102.0 102.0 102.0 April 99.0 99.0 100.0 103. 0 104. 5 104. 5 104. 5 104.5 104.0 104.0 104.0 104.0 104.0 104.0 103.0 102.5 102.5 102. 5 102.5 May 104. 0 104. 0 104. 0 104. 0 104. 0 104.0 104. 5 105. 0 105.0 105.0 106.5 107.0 107.0 106. 5 106.0 105.0 104.0 104. 0 104.0 June 105.0 105.0 105.0 105. 0 104.0 102.5 102. 5 102.5 102. 5 103.0 104.5 104.5 104. 5 105.0 105.5 106.0 106.0 106.0 106. 0 July." i.O 96.0 96.0 96.0 96.0 96. 0 96.0 96. 5 97.0 97.0 97.0 97.0 97.5 98.0 99.5 100.0 100.0 100.0 100.0 August 100.0 100.0 100.0 100. 0 100.0 100. 0 100.0 100.0 101.5 102.5 103.0 103.0 103. 0 103. 0 103.5 104.0 104.0 104.0 104.0 September... 102.0 102.0 101.0 100.0 100.0 100. 0 101.0 102.5 103.5 103.5 103.5 104.5 106.0 108.0 109. 0 109. 0 109.0 109.0 109.0 October 101.0 101.0 101.0 99. 5 99.0 99.0 99. 5 101.5 102.0 102.5 102.5 102. 5 102. 5 103. 5 104. 0 104.0 104.0 104.0 104.0 November... 101.0 101.0 101.0 100. 0 99. 0 98.5 97.0 97.0 97.0 97.0 97.0 97.0 97.5 98.0 98.0 98.0 98.0 98.0 98.0 December.._ 90.0 90.0 90.0 90.0 89.5 89.0 88.0 84.5 83.5 83.5 83.5 83.5 83.5 83.5 83.5 84.5 85.5 85.5 85.5 ORE Month 1919 1920 1921 1923 1928 1929 1930 1931 1932 1934 1935 1936 1937 January... 26.0 26.0 26.0 26.0 26.0 26.0 26.0 25.0 24.0 23.0 22.0 22.0 22.0 22.0 22.0 22.0 22.0 22.0 22.0 February. . 26.0 26.0 26.0 26.0 26. 0 26.0 26.0 26.0 25. 0 24.0 24.0 24.0 24.0 24.0 24.0 24.0 24.0 24.0 24.0 March 31.0 31.0 31.0 31.0 31.0 31.0 30.0 28.0 27.0 26.0 26.0 26.0 26.0 26.0 25.0 25.0 25.0 25.0 25.0 April 44.0 44.0 44.0 44.0 47.0 53.0 53.0 53.0 53.0 53.0 53.0 45.0 42.0 41.0 41.0 41.0 41.0 41.0 41.0 May 120.0 120.0 121.0 125. 0 137.0 146. 0 152.0 155. 0 155. 0 155. 0 155.0 153. 0 144.0 140.0 140.0 140.0 140.0 140.0 140.0 June 168.0 168.0 168.0 170.0 170.0 170. 0 170.0 171.0 175. 0 178.0 178.0 178. 0 176. 0 172.0 170.0 170.0 170.0 170.0 170.0 July 183.0 183.0 183. 0 183.0 183.0 177. 0 175.0 175.0 175.0 176.0 180.0 188.0 190.0 190.0 190.0 190.0 190.0 190.0 190.0 August 170.0 170. 0 170.0 170.0 170.0 170.0 170.0 171.0 171.0 171.0 173.0 179. 0 185. 0 185. 0 185.0 185. 0 185.0 185. 0 185.0 September. 177.0 177.0 177. 0 172.0 168. 0 166.0 165.0 165.0 165. 0 165.0 165.0 167. 0 175. 0 175. 0 175.0 175.0 175.0 175.0 175.0 October... 140.0 140. 0 140.0 140.0 135.0 135. 0 135.0 135.0 135. 0 135.0 135. 0 135.0 136. 0 145.0 148.0 148.0 148.0 148.0 148.0 November. 82.0 82.0 82.0 82.0 78.0 72. 0 71. 0 70.0 70.0 70.0 65.0 59.0 55.0 55.0 55.0 55.0 55.0 55.0 55.0 December. 33.0 33.0 32.0 31.0 29.0 28.0 27. 0 26.0 25.0 24.0 24.0 24.0 25.0 25.0 25.0 25.0 25.0 25.0 25.0 MISCELLANEOUS Month 1919 1920 1921 1926 1927 1928 1929 1930 1931 1932 1933 1934 1935 1937 January 85.5 85.5 85.5 85.5 85. 5 85.0 84.0 83.0 82.0 81.5 81.0 81.0 81.0 82.5 85.0 86.0 86.0 86.0 86.0 February 88.0 88.0 88.0 88.0 88.0 88.0 88.0 87.5 87.0 86.5 86.0 86. 0 86.0 86.0 86.0 86.0 86. 0 86.0 86.0 March 96. 0 96.0 96. 0 96.0 96.0 96. 0 96.0 96.0 96.0 96. 0 96.0 95.0 94.0 94.0 94.0 95.5 96.0 96.0 96.0 April 98.0 98.0 98. 0 98.0 98.5 98.5 99. 0 99.0 99.5 100.5 101.5 103.0 103.5 103.5 103.5 103.5 103.5 103.5 103.5 May 101.0 101.0 101.0 101.0 100.5 100. 0 100.0 101. 0102.5 102.5 102.5 103.0 103. 5 103.5 103.5 103. 5 103.5 103. 5 103.5 June 105.0 105.0 105. 0 104. 0 102. 0 101.0 101.0 101.5 102. 5 103.5 105.0 105.5 106.0 106.0 106. 0 105.5 104.0 104. 0 104.0 July 104.0 104.0 104. 0 103. 5 103. 0 102.5 102.5 103.5 104. 5 105. 0 105.0 105. 0 105.0 104.0 103. 0 102.0 101.5 101.5 101.5 August 104. 5 104. 5 104.5 104.5 104.5 105. 0 106. 0 107.0 107.5 107.5 107. 5 107. 0 106. 0 104. 5 103.0 102. 5 102. 0 102. 0 102.0 September... 112.0 112.0 112.0 112.0 113.5 116.0 117.0 118.0 118.0 118.0 117.5 117.0 116.0 115.0 113.5 112.5 112.0 112.0 112.0 October 116.0 116.0 116.0 116.0 116. 0 116.0 116.0 117.0 117.0 117.0 116.5 116.0 116.0 116.0 115.5 113. 5 113.0 113.0 113.0 November 103. 0 103. 0 103. 0 104. 5 105. 5 105. 5 105. 0 103.0 101.5 100. 5 100.0 100. 0 100.0 100.0 100. 0 101.0 102.0 102.0 102.0 December... 87.0 87.0 87.0 87.0 87.0 86.5 85.5 83.5 82.0 81.5 81.5 81.5 83.0 85.0 87.0 88.5 90.5 90.5 90.5 MERCHANDISE L. C. L. Month 1919 1920 1921 1922- 1923 1924 1925 1926 1931 1932 1933 1934 1936 1937 January 92.0 92.0 92.0 92.0 92.0 92.0 92.5 93.0 93.0 93.0 93.0 93.0 93.0 94.0 95.0 95.0 95.0 95.0 95.0 February... 95.0 95. 0 95.0 95. 0 95.0 96.0 96. 5 96. 5 96.5 96.5 96. 5 96.5 96. 5 96.5 96. 5 96.5 96.5 96.5 96.5 March 102. 0 102.0 102. 0 102.0 102.0 102. 0 102. 0 101.5 101. 5 101.0 101. 0101. 0100.5 100.0 100.0 100.0 100. 0 100.0 100.0 April 102.0 102. 0 102. 0 102. 0 102.0 102.0 101. 5 101.5 101.5 101.5 101. 5 101. 5101. 5 101.5 101. 5 101.5 101.5 101. 5 101.5 May 101.0 101. 0101.0 101.0 101.0 101. 0101.0 101.0 101.0 101. 0 101.0 101.0 101.0 100.5 100. 0 100. 0 100.0 100. 0 100.0 June 100. 0 100.0 100. 0 100. 0 100.0 99.5 99.5 99.5 99.5 100.0 100.5 100.5 100. 5 100.5 100.5 100.5 100. 5 100.5 100.5 July 100. 0 100.0 100. 0 100.0 100. 0 99.5 99.5 99.5 99. 5 99.5 99.5 99.5 99.5 99.5 99.5 99.5 99.5 99.5 99.5 August 99.5 1.5 99. 5 99. 5 99.5 99.5 99. 5 100.0 100.5 100.5 100.5 100.5 100.5 100. 5 100.5 100.5 100. 5 100.5 100.5 September. 105.0 105. 0 105.0 105.0 105.0 105.0 105. 0 105. 0 105.0 105.0 105.0 105.0 105.0 104.5 104. 5 104.5 104.5 104.5 104.5 October 104.0 104. 0 104. 0 104. 0 104. 0 104. 0 104.0 104. 0 104. 5 104.5 104.5 104. 5 104.5 104. 5 104.0 104. 0 104. 0 104.0 104.0 November.. 103.0 103. 0 103. 0 103. 0 103.0 103. 0 103. 0 103. 0 103. 0 103.0 102.5 102. 5 102.5 102. 5 102.0 102.0 102. 0 102.0 102.0 December.. 96.5 96.5 96. 5 96. 5 96. 5 96.5 96.0 95. 5 94.5 94.5 94.5 94.5 95.0 95.5 96.0 96.0 96. 0 96.0 96.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

530 FEDERAL RESERVE BULLETIN JUNE 1937 REVISION OF WEEKLY REPORT OF MEMBER BANKS IN LEADING CITIES Effective May 12 the Board of Governors were not secured by stocks or bonds amounted revised the form of the weekly condition on May 12 to $18,000,000, of which $14,000,report made each Wednesday by reporting 000 were at New York City banks. Under member banks in 101 leading cities. The the old classification these loans were innature of the revisions, which affected only cluded in "Other loans." certain of the loan classifications, was set "Loans on securities to others (except forth in the May issue of the Bulletin (pp. banks)" in the old form are no longer re- 440-441). On May 12 the banks reported ported as a single item. In the new form a figures for the various types of loans in ac- substantially comparable figure can be obcordance with both the new and the old tained by adding together three items: classification and beginning with May 19 the "Loans to others for the purpose of purreports were made on the new form with an chasing or carrying securities," "Commeradditional subdivision of "Commercial, in- cial, industrial, and agricultural loans on dustrial and agricultural loans" and "Other securities," and "Other loans on securities." loans" into loans on security collateral and The total of these three items is not exactly loans otherwise secured and unsecured. comparable with the figures formerly re- Table I shows the figures as reported on ported because some loans without stock and the old basis for May 12 and on the new basis bond collateral may be included in "Other for May 12 and May 19 for all reporting loans for purchasing or carrying securities," banks and for banks in New York City and but the amount, if any, is believed to be small. outside. Table II gives the figures for all re- No earlier figures comparable with the new porting banks with the new items regrouped classification of "Other loans for purchasing in a manner to show combinations compara- or carrying securities" are available. A ble with previously published figures. combination of "Loans to brokers and deal- "Loans to brokers and dealers in securi- ers in securities" and "Other loans for purties" were somewhat larger on the new basis chasing or carrying securities" measures the than on the old because in the old form only total volume of loans made by reporting banks loans on securities were included, whereas the for the purpose of purchasing or carrying stocks and bonds. revised form covers all loans to brokers and dealers in securities whether secured or un- Holdings of "Open-market paper" under secured if they are made for the purpose of the new classification were $121,000,000 purchasing or carrying securities. Loans to larger on May 12 than holdings of "Acceptbrokers and dealers for that purpose that ances and commercial paper bought" as re- TABLE I.—LOANS OF REPORTING MEMBER BANKS IN 101 LEADING CITIES. [In millions of dollars] May 12, 1937 May 12, 1937 May 19, 1937 Old classification r b e a i A p n n o l g k l rt s - Y N C o i e t r w y k O ci t t h ie e s r New classification re A po ll rt- Y N C o e it r w y k O ci t t h ie e s r r b e a A i p n n o l g k l r s t- Y N C o i e t r w y k O ci t t h ie e s r banks Total loans 9,531 3,805 5,726 Total loans 9,531 3,805 5,726 9,500 3,787 5,713 Loans to brokers and dealers: Commercial, industrial, and In New York City 1,090 1,047 43 agricultural loans: Outside New York City 226 72 154 On securities 232 332 Loans on securities to others (ex- Otherwise secured and un- ]4,183 > 1, 608 i 2, 575 cept banks) 734 1,334 secured 3,624 1,381 2,243 Open market paper...., 503 159 344 497 157 340 Acceptances and commercial Loans to brokers and dealers in paper bought i 382 101 281 securities 1,334 1,133 201 1,323 1,127 196 Loans on real estate 1,161 130 1,031 Other loans for purchasing or Loans to banks 122 80 42 carrying securities 740 284 456 722 277 445 Other loans 4,482 1,641 2,841 Real estate loans 1,161 130 1,031 1,162 129 1,033 L O o th a e n r s l t o o a b n a s: nks 122 80 42 118 76 42 On securities 718 242 476 Otherwise secured and unse- 11,488 i 411 1 1,077 cured 772 166 i Breakdown not available. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

531 FEDERAL RESERVE BULLETIN JUNE 1937 ported under the old classification, owing is a residual item covering all loans not otherto the fact that the new item includes the wise classified separately in the reports, and holdings by reporting banks of their own since the new form gives a more detailed acceptances, previously included in "Other classification, the item of "Other loans" has loans." This is offset somewhat by the fact been considerably reduced. These loans now that the old item "Acceptances and com- include only personal loans and other cusmercial paper bought" included an unknown tomer loans not secured by real estate and not amount, probably small, of direct loans pay- made for business purposes, nor for financing able abroad which in the revised form are the sale of goods, nor for purchasing or carryincluded in "Other loans". The new item ing securities. The figure obtainable from "Open-market paper," therefore, is not com- the new form most nearly comparable with parable with the old classification of "Ac- the old item "Other loans" is the sum of the ceptances and commercial paper bought." two subgroups of loans not secured by stocks Holdings of own acceptances have been re- and bonds reported under the new items ported by member banks in the periodic call "Commercial, industrial, and agricultural reports since June 1931, but figures for re- loans" and "Other loans." As shown in porting member banks are not available. Table II and explained in a footnote to that "Commercial, industrial, and agricultural table, this total is smaller than the former loans" is a new caption which covers loans figure of "Other loans" by a relatively small made for business purposes, formerly divided amount. between "Other loans" and "Loans on securities to others (except banks)". As explained TABLE II.—CLASSIFICATION OF LOANS AT REPORTING above, the amount of "Commercial, indus- MEMBER BANKS, ARRANGED TO SHOW COMPARABLE trial, and agricultural loans" made on securi- SERIES. ties will hereafter be shown as a subitem sep- [In millions of dollars] arately from those loans not secured by stocks or bonds. Heretofore no separate figures Old New classihave been available on "Commercial, indus- fication classification trial, and agricultural loans," and changes in this class of loans were only roughly meas- May 12,May 12,May 19, urable by changes in so-called "Other loans," 1937 1937 1937 which under the old classification included all Total loans _ 9,531 9, 531 9,500 loans to customers other than loans on real Loans to brokers and dealers in securities— estate and securities. That the old classifica- Total I 1,334 1,323 On securities _ .. _. _ . .. 1,316 I I tion of "Other loans" is not closely compar- Loans on securities to others (except banks)— able with the new classification of "Commer- Total 2,068 2,068 2 2, 004 cial, industrial, and agricultural loans" is in- For purchasing or carrying securities 3 l 740 722 dicated by the fact that of the commercial, C O o th m e m r ercial, industrial, and agricultural-. I J 41, 322 / \ 5 7 6 1 4 8 industrial, and agricultural loans reported in Open-market paper—Total (including own acthe new reports on May 19, $564,000,000 was ceptances held by reporting banks) 503 497 formerly reported under "Loans on securities Real A e c s c t e a p te ta l n o c a e n s s a nd com _ mercial paper bought 1, 3 1 8 6 2 1 1,1 l 61 1,1 l 62 to others (except banks)," and of loans not L O o th a e n r s l t o o a n b s a n (o k l s d classification _ i. _ e _ ., loans other- 122 122 118 made for commercial, industrial, and agri- wise secured and unsecured)—Total 4,482 s 4, 345 5 4,396 cultural purposes, $772,000,000 was formerly Commercial, industrial, and agricultural-_ l 4 3,624 reported under "Other loans". A$ already Other 4 772 explained, "Other loans" also formerly in- 1 Figure not reported separately. cluded a small amount of loans to brokers 2 Total of subgroups shown; closely comparable with figure reported and dealers not secured by stocks and bonds under old classification (see note 3). 3 May include a small amount of loans not secured by stocks and bonds. and an appreciable amount of own accept- 4 Breakdown not reported on May 12; total figure derived by deduction, ances purchased or discounted by the report- s This figure is smaller than the old figure of "Other loans" by the ing bank. difference between the sum of (1) own acceptances held by reporting banks and (2) loans to brokers and dealers in securities made for the pur- The new item of "Other loans" is not com-pose of purchasing or carrying securities but not secured by stocks and bonds, over the amount of (3) direct loans payable abroad to the extent, parable with the old item of the same name. probably small, that such direct loans were included in the former item "Other loans" in both the new and old forms "Acceptances and commercial paper bought." Figure for May 12 derived by deduction. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

532 FEDERAL RESERVE BULLETIN JUNE 1937 EARNINGS AND EXPENSES OF MEMBER BANKS ALL MEMBER BANKS BY CLASSES OF BANKS, YEARS ENDED DECEMBER 31, 1936 AND 1935 Amounts per $100 of loans and Amounts (in thousands of dollars) investments l 2 All member Nationa' member State member me A m l b l er N m a e t m io b n e a r l m S e t m at b e er banks bariks banks banks banks banks 1936 1935 1936 1935 1936 1935 1936 1935 1936 1935 1936 1935 Earnings: Interest and discount on loans 513,399 498, 419 346, 951 339, 272 166, 448 159,147 $1.64 $1. 72 $1. 75 $1.85 $1.44 $1. 50 Interest and dividends on investments 487, 101 467, 217 325, 772 315, 726 161, 329 151,491 1.55 1.62 1. 65 1.73 1.39 1.43 Interest on balances with other banks. 1,207 1,681 905 1,123 302 558 01 .01 .01 Collection charges, commissions, fees, etc. 31, 397 28, 825 22,167 20, 292 9, 230 8,533 .10 .10 .11 .11 .08 .08 Foreign department-_ 12,165 12, 282 7,657 6, 887 4,508 5,395 .04 .04 .04 .04 .04 .05 Trust department 88, 297 77, 703 31,712 28, 540 56, 585 49,163 .28 .27 .16 .15 .49 .46 Service charges on deposit accounts 39,415 35, 634 27, 467 24,887 11,948 10, 747 .13 .12 . 14 .14 .10 .10 R O e th n e t r re c c u e r i r v e e n d t earnings . 7 1 8 9 , , 4 4 5 7 6 1} 84,888 / 1 4 1 8 3, , 1 0 5 4 3 3} 55,510 \ J 30 6 , , 4 3 2 0 8 3 } 29,378 \ r . . O 2 6 5 \ ( . . 0 2 7 4}.3O \ f . . O 2 6 6 / ' Total current earnings. 1, 270, 908 1, 206, 649 823, 827 792, 237 447, 081 414, 412 4.05 4.17 4. 16 4.33 3.86 3.90 Expenses: Interest on deposits: Time 175,164 196, 490 126,175 142, 520 48, 989 53, 970 .56 .68 .64 .78 .42 .51 Demand 7, 137 9,298 5,144 6, 726 1, 993 2,572 .02 .03 .03 .04 .02 .02 Bank 2,175 2, 695 1,425 1,703 750 992 .01 .01 .01 .01 .01 .01 Total 184, 476 208, 483 132, 744 150, 949 51,732 57, 534 .59 .72 .67 .83 t.4:5 .54 S Sa a l l a a r r e ie s s , a o n f d fi c w er a s g es .. , employees (other 135, 501 334,468 J 90, 548 211,242 (44, 953 1 123,226 j- 1.16 r. 46 I 1.16 than officers) 216,213 [130,893 (85, 320 1.66 Fees paid to directors and members of executive, discount, and advisory committees 6 269 3 4,398 3 1,871 3 .02 3 .02 3 .02 3 Interest and discount on borrowed money 613 1 230 265 429 348 801 .01 R O e th al e r e s ta ta x t e e s taxes 3 47 3 , , 9 1 7 7 0 5 | 63,680 / \ 2 2 1 7 , , 9 5 4 6 1 1 } 42,628 \ / 1 19 2 , , 4 2 0 3 9 4 1 21,052 i f . . 1 ll 5 } .22 \ f . . 1 ll 4 1 .23 1 f . . 1 ll 7 } .20 Other expenses 247, 897 224, 654 155,981 142, 528 91, 916 82,126 .79 .78 \79 ' .78 \79 .77 Total current expenses 872,114 832, 515 564, 331 547, 776 307, 783 284, 739 2.78 2.88 2.85 3.00 2.65 2.68 Net earnings.. 398, 794 374,134 259, 496 244, 461 139, 298 129, 673 1.27 1.29 1.31 1.33 1.20 1.22 Recoveries, profits on securities, etc.: Recoveries on loans.. 94, 247 71,901 69, 515 47, 327 24, 732 24, 574 .30 .25 .35 .26 .21 .23 P R r e o c f o it v s e r o ie n s s e o c n u r in it v ie e s s t s m ol e d nts 2 1 3 6 0 0 , , 6 31 9 8 8j 277,027 / 1 1 1 2 5 0 7 , , 6 8 5 9 4 1J 180,441 / \7 3 2 9 , , 8 6 0 6 7 4 } 96,586 J \. . 7 5 4 1 1 .96 \ / . . 8 6 O 1 } .« f. 34 j \ . Q yi 1 All other.. 22, 808 27,078 12,187 12, 309 10, 621 14, 769 .07 .09 .06 .07 .09 . 14 Total 508,071 376, 006 360, 247 240, 077 147, 824 135, 929 1.62 1.30 1.82 1.31 1.28 1.28 Losses and depreciation: On loans 206, 548 252, 374 154, 312 159, 978 52, 236 92, 396 .66 .87 .78 .87 .45 .87 On investments 131,406 198 765 91, 935 116,182 39, 471 82, 583 .42 .69 .46 .64 .34 .78 On banking house, furniture and fixtures 38, 721 33, 586 26,416 23, 329 12, 305 10, 257 .12 .12 .13 .13 .11 .10 All other. _ 64, 873 53, 537 33, 510 26, 950 31, 363 26, 587 .21 .18 .17 .15 .27 .25 Total losses and depreciation 441, 548 538, 262 306,173 326, 439 135, 375 211, 823 1.41 1.86 1.55 1.79 1.17 2.00 Net profits 465, 317 211,878 313, 570 158, 099 151, 747 53, 779 1.48 .73 1.58 .86 1.31 .51 Cash dividends declared 3 198, 663 186, 810 121,355 112,918 77, 308 73,892 Loans 2 12, 543,82911,985,150 7, 730, 096 7, 418, 739 4, 813, 733 4, 566, 411 Investments 2___ 18, 839,01016, 913, 30812, 059, 81810, 866, 893 6, 779,192 6,046, 415 Loans and investments 2 31,382,83928, 898, 45819,789,914 18, 285, 63211, 592, 92510, 612, 826 Time deposits 2 10. 660, 49410,181, 426 7, 547, 641 7, 203, 568 3,112,853 2,977, 858 Total deposits 2 40,129,63035, 694, 47525, 831, 68122, 976, 96814, 297, 94912, 717. 507 Capital funds 2 5 5, 209, 486 5,118, 478 3,136, 732 3,078, 033 2, 072, 754 2,040; 445 Other ratios 12 Net profit per $100 of capital funds s $8.93 $4.14$10. 00 $5.14 $7. 32 $2.64 Interest and discount on loans per $100 of loans 4.09 4.16 4.49 4.57 3.46 3.49 Losses on loans per $100 of loans 1.65 2.11 2.00 2.16 1.09 2.02 Interest and dividends on investments per $100 of investments 2.59 2.76 2.70 2.91 2.38 2.51 Losses on investments per $100 of investments .70 1.18 .76 1.07 .58 1.37 Interest on time deposits per $100 of timedeposits 1.64 1.93 1.67 1.98 1.57 1.81 Total deposits per $1 of capital funds 5 7.70 6.97 8.24 7.46 6.90 6.23 Loans and investments per $1 of capital fimds 3 6.02 5.65 6.31 5.94 5.59 5 20 For footnotes, see p. 533. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1937 FEDERAL RESERVE BULLETIN 533 EARNINGS AND EXPENSES OF MEMBER BANKS—Continued ALL MEMBER BANKS, BY DISTRICTS, YEARS ENDED DECEMBER 31, 1936 AND 1935 [ In thousands of dollarsl Federal Reserve District Boston Xew York Philadelphia Cleveland Richmond Atlanta 1936 1935 1936 1935 1936 1935 1936 1935 1936 1935 1936 1935 Earnings: Interest and discount i on loans 37, 814 39, 559 135, 272 131,151 42, 736 44,192 47, 754 47, 403 24, 775 23, 944 20, 534 20, 704 Interest and dividends on investments 28, 886 28, 373 149, 720 142, 491 47, 542 45, 337 51,448 48, 670 18, 672 18,915 15,225 13, 643 Interest on balances with other banks 26 34 174 423 142 129 127 124 65 64 84 Collection charges, commissions, fees, etc. 1,012 886 6, 993 6, 421 89' 651 1, 351 1, 216 1,271 1,160 2, 562 2, 313 Foreign department 1,075 969 8, 140 8,197 387 375 361 312 45 34 190 197 T Se r r u v s i t c e d e c p h a a r r t g m es e n o t n de- 6, 270 5,550 41, 975 36, 352 8,120 7, 250 6,328 5, 369 2,253 1,922 1,574 1,340 posit accounts 3.185 2,970 9, 016 8,109 1,768 1,717 2, 756 2, 245 1,849 1,728 1,815 1,562 R O e th n e t r r e c c u e r i r v e e n d t earnings. 5 1 . , 4 2 2 4 4 0 6, 294 \ / 23 7 , , 8 0 4 22 22, 348 U f6 . , 1 1 3 8 9 8 6,21 f i 7 1 . . 7 9 7 7 3 6 8,810 \ f 3, 5 02 56 2 3,185 1 (3 ,3 5 0 9 9 9 3, 691 Total current earnings 84,932 84,635 355, 492 108,919 105,868 119,874 114.149 52, 508 50, 952 45, 892 43, 536 Expenses: Interest on deposits: Time 12, 459 14. 087 30, 697 37,187 20, 441 22, 491 23, 069 23, 014 9,879 10, 451 6, 004 7, 020 Demand 108 56 1. 933 2.118 606 519 806 1, 537 239 194 417 427 Bank 271 295 362 574 414 585 381 385 101 102 102 113 Total 12. 838 14, 438 32, 992 39, 879 21,461 23, 595 24, 256 24,936 10, 219 10, 747 6, 523 7, 560 Salaries, officers 9, 492 38, 019 10,271 (10,521 6, 220 5,544 Salaries and wages, employees (other than 23,120 110,116 25, 242 26, 207 12, 917 11,951 officers) 13,954 [ 75, 875 15, 978 17, 470 i 7, 659 7,134 Fees paid to directors and members of executive,discount,and advisory committees. 673 3 1,594 1,092 534 256 Interest and discount on borrowed money. - 37 65 131 226 51 123 17 35 19 49 67 R O e th a e l r e s ta ta x t e e s taxes 2 3. , 0 4 1 3 8 4 4, 543 \ 1 1 1 3 0 , ,9 8 5 9 9 3 16,979 1 1 3 2 , , 8 4 6 6 2 4 5,126 1 (2 5 , , 9 9 1 4 0 6 7, 046 \ / 1 1 ,1 ,9 0 3 6 3 2,704 / 1 1 1, , 3 63 0 7 " 2,832 Other expenses 15. 284 14,434 84,156 75,414 18, 736 17,500 21,093 17, 73' 9,017 7,: 9, 449 8, 583 Total current expenses 730 56, 600 257,619 242, 614 73,915 71.586 75. 961 36, 498 34, 268 31,899 30, 993 Net earnings 28. 03,5 112.878 34, 282 37, 12; 38,188 16, 01C 16, 684 J 3, 993 12, 543 Recoveries, profits on securities, etc.: Recoveries on loans 5, 343 3, 551 38, 405 29, 361 3,592 3,703 5, 491 3,409 2,693 2,163 1,711 1,063 Recoveries on investments 6,130 15,054 J 97, 342\ 106,212 5, 818 \ 23,091 i 5,718 16, 546 2, 211 11,199 2, 564 7, 950 Profits on securities sold 13, 489 (78, 799 19,848 20,282 12, 080 7,956 Allother 1,728 1,514 5,8r 11,682 1, 404 1,955 2,134 1,061 1,103 842 548 451 Total 26, 690 20,119 220. 363 147.255 30, 662 28. 749 33. 625 21,016 14,204 12, 779 9, 464 Losses and depreciation: On loans 14, 581 12,978 74, 209 102.197 17,233 24, 99' 17,144 16,04 5, 377 9,241 5, 459 7,021 On investments 9,108 11,728 42, 833 75, 028 11,542 21,346 10,732 18,336 9,080 9,414 5, 462 4,995 On banking house, furniture and fixtures... 2, 693 2.26; 11,338 11,212 2,77; 3, 30£ 4,245 2, 381 1,443 1, 582 1, 555 1,076 All other 3, 609 2,724 23, 641 18, 216 5, 43J 7,027 5,521 2,821 1,916 1,728 1, 353 1, 093 Total losses and depreciation 29, 991 29, 695 206, 653 36, 98; 56, 675 37, 642 39, 585 17,816 21, 965 13, 829 14,185 Net profits 23,901 18, 459 192, 882 53, 48C 28, 679 6, 356 33,110 19,619 16, 281 8, 923 12,943 7,822 Cash dividends declared 4_. 13,459 13,048 85, 986 86, 543 18, 588 17,77f 12.41 ll,38f 6.976 6, 058 5, 783 4, 973 Loans 2 956, 782 955, 25c 4, 629, 752 4, 358, 243 940, 553 971,934 969,886 946, 817 475,061 461, 543 406, 872 413, 357 Investments 2 976,916 931, 861 6, 863, 250 6,161,410 1,373,8171, 239, 4471, 661, 2531, 478, 598 662, 198 607,442 533, 655 453, 242 Loans and investments 2 1,933, 6981,887,11611,493,002 10,519,653 2,314,3702,211,3812,631,139 2,425,4151,137, 2591, 068, 986 940, 52; 866, 599 Time deposits 2_. 699,973 709, 371 2,090, 665 2, 090, 7611, 045, 8521,019,45' 1, 265, 5761,163,093 506, 465 484, 873 352,188 341, 544 Total deposits 2. 2,430,0102, 277, 54514, 073, 53012, 630, 4172, 733, 9552,482,5113, 206, 4512, 799, 395 , 563, 6801, 382, 9891, 329, 5861,137,927 Capital funds 2 5. 376, 766 373,166 2,012,211 1,996, 552 488, 329 481,912 497, 879 481, 445 187, 366 181, 884 164, 260 158,669 1 The ratios are based upon data taken frcm the customary abstracts of reports of condition and of earnings and dividends. It should be borne in mind in using them that the statistics employed represent aggregates for all member banks reporting on the various dates, and the ratios are therefore ratios of aggregates in which figures for large banks have a statistical influence somewhat disproportionate to their number in comparison with the figures for small banks. No adjustments have been made in the underlying data for changes during a given year in the number of banks whose reports underlie the statistics, since the figures presented are for sufficiently large groups that the results appear not to be appreciably affected by these changes. 2 Figures for loans, investments, deposits, and capital funds are averages of amounts from reports of condition for 4 call dates for 1936 and 5 call dates for 1935. (December to December). 3 Not reported separately; included partly in "Salaries" and in "other expenses." 4 Includes interest on capital notes and debentures. 5 By "capital funds" is meant the aggregate book value of capital stock, capital notes and debentures, surplus, undivided profits, reserves for contingencies, reserves for stock dividends on common stock, and retirement fund for preferred stock and/or capital notes and debentures. Prior to July, 1932, reserves for dividends were also included in capital funds. Back figures.—See BULLETIN for July 1936, pp. 522-524. For summary figures for the country as a whole, see Annual Report for 1935 (table 60). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

534 FEDERAL RESERVE BULLETIN JUNE 1937 EARNINGS AND EXPENSES OF MEMBER BANKS—Continued ALL MEMBER BANKS, BY DISTRICTS, YEARS ENDED DEC. 31, 1936 AND 1935—Continued [In thousands of dollars] Federal Reserve District Chicago St. Louis Minneapolis Kansas City Dallas San Francisco 1936 1935 1936 1935 1936 1935 1936 1935 1936 1935 1936 1935 Earnings: Interest and discount on loans 45, 423 43,184 18, 711 17, 709 13, 533 13,103 23, 503 21,155 23, 005 21, 593 80, 339 74, 722 Interest and dividends on investments 63, 905 57, 361 16, 447 17, 471 13, 220 13, 357 16, 652 18,145 11,726 11,159 53, 658 52, 295 Interest on balances with other banks 91 54 40 108 121 120 185 13 31 225 353 Collection charges, commissions, fees, etc 5,314 5,125 1,804 1,677 3,019 2,947 1,737 1,643 1,628 1,412 3,809 3,374 Foreign department 905 852 43 35 70 65 14 13 26 27 1,206 T Se r r u v s i t c e d ep ch a a rt r m ge e s n t on de- 11,412 10, 390 1,263 1,317 987 1, 467 1,192 521 484 5,550 posit accounts 6,318 5,877 1,489 1,331 1,206 1,153 3,066 2,820 1, 931 1,759 5,016 4, 363 R O e th n e t r re c c u e r i r v e e n d t earnings.__ 8 1 , ,7 7 1 5 7 8 9,528 \ ( 2 1 , ,4 0 0 5 5 7 3,006 / 1 I , 6 6 3 2 3 2 2,482 \ / 3, 9 8 2 6 2 9 4,615 / \ 3, 3 4 7 46 9 3,844 / \ 9 1 , ,7 26 6 1 3 10, 868 Total current earnings._ 143, 821 132,408 43, 273 42, 586 34, 497 34, 215 51, 350 49, 768 42, 675 40, 309 161, 008 152, 731 Expenses: Interest on deposits: Time 18, 956 20, 704 6,303 7,242 5,708 6, 591 4,580 5,519 3,096 3,847 33, 972 38, 337 Demand 902 1,293 233 292 169 160 411 564 417 462 896 1,676 Bank 92 82 61 57 77 141 127 12 20 234 214 Total 19,950 22, 079 6,597 7, 591 5, 954 6, 892 5,059 6,210 3, 525 4,329 35, 102 40, 227 Salaries, officers 14, 822 5,445 f 5, 259 7,f" [6,523 15,705 Salaries and wages, employees (other than 37,876 11,107 9,813 14, 503 11,605 40,011 officers) 26, 204 6,341 4,868 7,580 (5,826 27, 324 Fees paid to directors and members of executive, discount, and advisory committees 461 250 206 199 414 Interest and discount on borrowed money 51 63 204 550 3 21 13 26 36 28 12 R O e th a e l r e s ta ta x t e e s taxes 2 5, , 7 7 1 3 7 9 6,670 / U 1 , , 7 2 4 3 1 8 2,683 \ 1,660 2,472 / \2 I, , 0 2 6 5 9 1 2,620 \ / 1 I, , 8 6 1 5 6 3 3,027 \ 1 4 4 , , 6 2 4 5 7 8 6,978 Other expenses 27, 580 24, 288 8,132 7,195 6,891 6,617 10,895 10,043 8, 621 7,717 28, 043 27, 245 Total current expenses. 97, 524 90, 976 29,948 29,126 25, 728 25,815 34, 796 33, 389 28,189 26, 714 115, 521 114,473 Net earnings 46, 297 41, 432 13,325 13, 460 8, 769 8,400 16, 554 16, 379 14,486 13, 5 45, 487 38, 258 Recoveries, profits on securities, etc.: Recoveries on loans 17,496 11, 698 2,375 2,615 3,34J 3,482 3,547 3,035 4,278 3,51' 5,971 4,304 Recoveries on invest- Pr m of e it n s t s on securities sold. 3 18 3 , , 1 6 3 5 3 9 28,518 / \ 4 7 , , 0 5 8 7 5 3 12, 279 / \4 2, , 9 7 5 4 6 8 7,148 / \ 3 5 , , 3 2 7 2 5 4 10, 458 14, 939 8,978 \ / 2 2 9 , , 0 4 0 7 0 6 29, 594 Allother 3,622 3,858 671 618 938 862 762 786 738 3,195 2, 633 Total.. 72, 910 44, 074 14, 704 15, 5 11,98' 11,594 13, 008 14, 255 12, 614 13, 233 40, 642 36, 531 Losses and depreciation: On loans 28, 969 27, 840 3, 67! 6,698 4, 026 4, 446 8,919 5,671 7,864 25, 761 21, 583 On investments 14, 942 19, 270 4,9i: 9,358 5,359 5,533 4,794 6,803 4, 023 5,073 8, 618 11,881 On banking house, furniture and fixtures 4,646 3, 073 1,134 1, 003 1, 276 857 1, 72£ 1,666 1,687 1, 363 4,202 3, 803 Allother 9, 729 4,282 1, 790 1,69' 1,059 1, 086 1,648 2,113 1, 85S 1,964 7, 313 Total losses and depreciation 58, 286 54, 465 11,509 18, 756 11, 720 14, 465 12, 613 19, 501 13, 240 16, 264 45, 894 46, 053 Net profits 60,921 31,041 16, 520 10,216 9, 036 5,529 16, 949 11,133 13, 860 10, 564 40, 235 28, 736 Cash dividends declared 3 12,116 5,417 4,255 3,922 4,111 7,804 4,950 6,03! 5,355 20,165 18, 390 Loans 2 1,127,3781, 028, 626 400, 912 378, 352 290. 454 280, 384 406, 474 366, 41 355, 554 338,7901, 584,1511,485,430 Investments 2 2, 787, 0172, 354, 313 607,141 556, 058 448, 705 427, 835 631,091 608, 638 407, 482 381,1931, 1, 713, 270 Loans and investments13,914,3953,382,939 1,008,053 934,410 739,159 708, 2191,037, 565 975,051 763,036 719,9833, 470, 6363,198, 700 Time deposits 2_. 1, 375, 6801, 219, 969 366, 316 349, 225 354, 918 343, 939 313,924 310,826 199,141 195, 8382,089, 7961, 952, 530 Total deposits 2. 5, 420, 5154,611,951 1, 361, 0681, 209, 9701, 002, 510 932, 5361, 653, 5241, 485, 7261,194, 4911,044, :, 160, 3103, 699, 281 Capital funds 2 5. 496. 278 475, 608 151,474 147. 850 113.347 114,811 159,983 154,969 147, 367 143, 334 414. 226 408. 278 For footnotes see p. 533. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1937 FEDERAL RESERVE BULLETIN 535 EARNINGS AND EXPENSES OF MEMBER BANKS—Continued ALL MEMBER BANKS BY DISTRICTS, YEARS ENDED DEC. 31, 1936 AND 1935—Continued Federal Reserve District Boston New York Philadelphia Cleveland Richmond Atlanta 1936 1935 1936 1935 1936 1935 1936 1935 1936 1935 1936 1935 Amounts per $100 of loans and investments:1 2 Interest earned $3. 45 $3. 60 $2. 48 $2. 61 $3. 91 $4.05 $3.78 $3.97 $3. 83 $4. 02 $3. 81 $3. 97 Other earnings... _ _. _ ___ .94 .88 .84 .77 .80 .74 .78 .74 .79 .75 1.07 1.05 Total current earnings 4. 39 4.48 3.33 3.38 4.71 4.79 4.56 4.71 4.62 4.77 4.88 5.02 Interest on deposits .66 .77 .29 .38 .93 1.07 .92 1.03 .90 1.01 .69 .87 S S a a l l a a r r i i e e s s , , o e f m fic p e lo rs y ees _ _ ___ . . 7 4 2 9 ' 1 ' 1.23 (. . 3 6 3 6 1 1.05 / 1 . - 4 4 69 1 / 1.14 \ ( . . 6 4 6 0 f 1 1.08 / I . 5 6 5 7 1 / 1.21 /. • 7 59 6 1 / 1.38 Fees paid to directors, etc .03 3 .01 3 .05 3 .02 3 .03 3 .03 3 Interest and discount on borrowed monev 01 .01 .01 R O e th al e r e s ta ta x t e e s taxes .__ _ ________ . . 1 1 6 3 ' 1 .24 I (. 1 1 2 0 ; ; .16 1 /. . 1 1 2 5 1 ' .23 1 /• .2 H 2 I ,' .29 /. 10\ .25 1 (. . 1 1 7 4 1 / .33 All other expenses ... _ __ .. .79 .76 .73 .72 .81 .79 .80' .73 .74 1.00 .99 Total current expenses 2. 99 3. 00 2.24 2.31 3.19 3. 24 3. 14 3.13 3.21 3.21 3.39 3. 58 Net earnings 1.48 1.08 1.07 1.51 1.55 1.41 1.58 1.41 1.56 1.49 1.44 Recoveries, profit on securities, etc 1.38 1.07 1.92 1. 40 1.32 1.30 1.28 .87 1.59 1.33 1. 36 1.09 Losses and depreciation 1.55 1.57 1.32 1.96 1.60 2.56 1.43 1.63 1. 57 2.05 1.47 1.64 Net profit. . . 1.24 .98 1.68 .51 1.24 .29 1.26 .81 1.43 .83 1.38 .90 Other ratios: 1 2 Net profit per $100 of capital funds 6 6. 34 4. 95 9.59 2.68 5.87 1.32 6. 65 4.08 8. 69 4.91 7.88 4.93 Interest and discount on loans per $.100 of loans 3. 95 4.14 2.92 3.01 4.54 4.55 4.92 5. 01 5.22 5.19 5. 05 5.01 Losses on loans per $100 of loans 1.52 1.36 1.60 2.34 1.83 2.57 1.77 1.69 1.13 2.00 1.34 1.70 Interest and dividends on investments per $100 of investments . _ . 2.96 3.04 2. 18 2.31 3.46 3. 66 3.10 3.29 2.82 3.11 2. 85 3.01 Losses on investments per $100 of investments . 93 1.26 .62 1.22 .84 1.72 .65 1.24 1.37 1. 55 1.02 1.10 Interest on time deposits per $100 of time deposits.. 1.78 1.99 1.47 1.78 1.95 2.21 1.82 1. 98 1.95 2. 16 1.70 2.06 5 13 5. 06 5. 71 5.27 4.74 4.59 5. 28 5. 04 6. 07 5.88 5. 73 5.46 Total deposits per $1 of capital funds 5. ___ ___ . 6.45 6. 10 6. 99 6.33 5.60 5.15 6.44 5.81 8.35 7.60 8.09 7.17 Chicago St. Louis Minneapolis Kansas City Dallas San Francisco 1936 1935 1936 1935 1936 1935 1936 1935 1936 1935 1936 1935 Amounts per $100 of loans and investments:] 2 $2 79 $2 97 $3 49 $3 77 $3 63 $3 75 $3 88 $4 05 $4 55 $4 55 $3 87 $ 398 Other earnings . ___ - .88 .94 .80 .79 1.03 1.08 1.07 1. 05 1.04 1.05 .77 .79 Total current earnings _. _.. _. . 3.67 3.91 4.29 4.56 4.67 4.83 4.95 5.10 5.59 5.60 4.64 4.77 Interest on deposits.. ... .51 .65 .65 .81 .81 .97 .49 .63 .46 .60 1.01 1.26 S S a a l l a a r r i i e e s s — -— o e ff m ic p e l r o s yees . . 3 6 8 7 1 .' 1.12 1.63/ 1.19 { \. •7 6 1 6; 1 1.39 / 1 . . 7 7 4 3 1 / 1.49 / 1 . . 8 7 5 6 1 / 1.61 1 1. 7 4 9 5 / 1 1.25 Fees paid to directors, etc.. ___ .01' 3 .02 3 .03 3 .02 3 .03 3 .01 3 Interest and discount on borrowed money 02 06 01 R O e th a e l r e s ta ta x t e e s taxes __ . .1 0 5 7 . 1 ' .20 1 (. . 1 1 2 7/ 1 .29 / \. . 1 2 2 2 1 / .35 \ ( . . 1 2 2 0 1 ; .27 1 (. . 2 2 2 4 1 ; .42 / 1 . .1 12 3 1 / .22 All other expenses .70 .72 .81 .77 .93 .93 1.05 1.03 1.13 1.07 .81 .85 Total current expenses._ _._ _ 2.49 2.69 2.97 3.12 3.48 3.64 3.35 3.42 3.69 3.71 3.33 3.58 Net earnings 1 18 1 22 1 32 1 44 1 19 1 19 1 60 1 68 1 90 1 89 1 31 1.19 Recoveries, profits on securities, etc. 1.86 1.30 1.46 1.66 1.62 1.64 1.25 1.46 1.65 1.84 1.17 1.14 Losses and depreciation 1.49 1.61 1.14 2.01 1.59 2.04 1.22 2.00 1.74 2.26 1.32 1.44 Net profit -_. . . . 1. 56 .92 1.64 1.09 1.22 .78 1.63 1. 14 1.82 1.47 1.16 .90 Other ratios:12 Net profit per $100 of capital funds 5 12. 28 6.53 10.91 6.91 7.97 4.82 10.59 7.18 9.41 7.37 9.71 7.04 Interest and discount on loans per $100 of loans... 4.03 4.20 4.67 4.68 4.66 4.67 5.78 5.77 6.47 6.37 5.07 5.03 Losses on loans per $100 of loans 2.57 2.71 .92 1.77 1.39 2.49 1.09 2.43 1.59 2.32 1.63 1.45 Interest and dividends on investments per $100 of investment... ... _ _ __ 2.29 2.44 2.71 3.14 2.95 3.12 2.64 2.98 2.88 2.93 2.84 3.05 Losses on investments per $100 of investments .54 .82 .81 1.68 1.19 1.29 .76 1.12 .99 1.33 .46 .69 Interest on time deposits per $100 of time deposits. _ 1.38 1.70 1.72 2.07 1.61 1.92 1.46 1.78 1.55 1.96 1.63 1.96 Loans and investments per $1 of capital funds5 7.89 7.11 6. 65 6.32 6.52 6.17 6.49 6.29 5.18 5.02 8.38 7.83 Total deposits per $1 of capital funds 5 _ 10. 92 9.70 8.99 8.18 8.84 8. 12 10.34 9.59 8.11 7.29 10.04 9.06 For footnotes see p. 533. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

536 FEDERAL RESERVE BULLETIN JUNE 1937 EARNINGS AND EXPENSES OF MEMBER BANKS—Continued NATIONAL AND STATE MEMBER BANKS, BY SIX-MONTH PERIODS DURING 1936 [ Amounts in thousands of dollars] All member banks National member banks State member banks First half Second half First half Second half First half Second half of 1936 of 1936 of 1936 of 1936 of 1936 of 1936 Earnings: Interest and discount on loans._. .. . . . 253, 059 260, 340 171, 729 175, 222 81,330 85,118 Interest and dividends on investments 235, 227 251, 874 158,092 167, 680 77,135 84,194 Interest on balances with other banks 596 611 443 462 153 149 Collection charges commissions fees etc 15,021 16, 376 10, 575 11, 592 4,446 4,784 Foreign department 4,533 7. 632 2, 591 5,066 1,942 2, 566 Trust department . _ 41,470 46, 827 14. 719 16,993 26,751 29, 834 Service charges on deposit accounts 19, 247 20,168 13, 408 14, 059 5,839 6,109 Rent received .. _ • 38,185 40, 271 23, 280 24, 873 14, 905 15, 398 Other current earnings 9, 226 10, 245 6,100 6,943 3,126 3,302 Total current earnings ... 616, 564 654. 344 400, 937 422,890 215, 627 231, 454 Expenses: Interest on deposits: Time 88, 210 86, 954 63, 774 62, 401 24, 436 24, 553 Demand 3,706 3, 431 2, 657 2,487 1,049 944 Bank 1,101 1,074 722 703 379 371 Total 93,017 91, 459 67,153 65,591 25. 864 25, 868 Salaries, officers ._ 66, 514 68, 987 44, 330 46, 218 22,184 22, 769 Salaries and wages, employees (other than officers) .. 105,043 111,170 63, 397 67, 496 41, 646 43, 674 Fees paid to directors and members of executive, discount, and advisory committees 3, 020 3,249 2,090 2,308 930 941 Interest and discount on borrowed monev . 295 318 117 148 178 170 Real estate taxes 17 032 16,938 10, 731 10,830 6,301 6,108 Other taxes _.. _ . 21, 984 25,191 12, 705 15, 236 9,279 9,955 Other expenses 122, 980 124,917 77, 338 78, 643 ' 45,642 46, 274 Total current expenses. 429, 885 442, 229 277, 861 286, 470 152, 024 155, 759 Net earnings 186, 679 212,115 123,076 136,420 63, 603 75, 695 Recoveries, profits on securities etc.: Recoveries on loans 43 965 50, 282 32. 639 36, 876 11,326 13. 406 Recoveries on investments 84, 931 75,387 67, 932 52, 722 16, 999 22, 665 Profits on securities sold — 115,729 114,969 78, 919 78, 972 36, 810 35,997 All other. . 8,987 13, 821 4,869 7,318 4,118 6,503 Total... 253, 612 254,459 184, 359 175, 888 69, 253 78, 571 Losses and depreciation: On loans 100, 297 106, 251 76,154 78,158 24,143 28,093 On investments 65 315 66,091 44, 979 46, 956 20,336 19,135 On banking house, furniture and fixtures 15, 582 23,139 10, 624 15, 792 4,958 7,347 Allother 34, 950 29, 923 16, 425 17,085 18, 525 12, 838 Total losses and depreciation 216,144 225,404 148,182 157,991 67,962 67, 413 Net profits 224,147 241,170 159,253 154,317 64, 894 86, 853 Cash dividends declaredl 95. 289 103, 374 57, 838 63, 517 37,451 39, 857 Total deposits at end of period 40 705 564 42, 885, 326 26,152,801 27, 555, 856 14, 552, 763 15, 329, 470 Capital funds at end of period 5, 235. 367 5,275,179 3,159,252 3,164,624 2,076,115 2,110, 555 Number of officers at end of period . 31,825 31, 880 24, 302 24, 218 7,523 7,662 Number of employees (full and part time) at end of period 147, 823 149, 422 92, 431 93, 565 55, 392 55,857 Number of banks at end of period 6,400 6,376 5, 368 5,325 1,032 1,051 1 Includes interest on capital notes and debentures. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1937 FEDERAL RESERVE BULLETIN 537 EARNINGS AND EXPENSES OF MEMBER BANKS—Continued EARNINGS, EXPENSES, AND DIVIDENDS OF STATE BANK MEMBERS DURING 1936, BY SIZE OF BANKS1 [In thousands of dollars] Total, Banks operating throughout entire year, with deposits onDec. 31, 1936 of Banks all oper- State ating me B m a b n e k rs2 $ u 10 a n 0 n d , d e 0 r 00 $ $ 2 1 5 0 t 0 0 o , , 0 0 0 0 0 1 $ $ 5 2 0 5 0 0 to , , 0 0 0 0 1 0 $ $7 5 5 0 t 0 0 o , , 0 0 0 0 0 1 $ $ 1 7 ,0 5 0 0 to 0 , , 0 0 0 0 1 0 $ $2 1 , , 0 0 0 0 to 0 0 , , 0 0 0 0 1 0 $ $5 2 , , 0 0 0 t 0 o 0 0 , , 0 0 0 0 1 0$ $5 5 , 0 , 0 0 t 0 0 o 0 0 , , 0 0 0 0 1 0 $ a 5 n 0 d ,0 0 o 0 v ,0 e 0 r 1 1 t l h e y a s e s n ars Earnings: Interest and discount on loans__ 166,453 34 433 1,809 1,994 1,402 5, 264 11,367 43,538 100, 037 575 Interest and dividends on investments 161 335 5 121 679 1 060 787 3 335 7 771 33, 573 113 124 880 Interest on balances with other banks 307 3 5 5 11 16 65 202 Collection charges, commissions, fees, etc 9,231 3 56 177 180 92 344 728 1,997 5, 624 30 Foreign department 4, 504 1 54 213 4, 236 Trust department 56, 581 5 8 21 194 662 8,041 45, 920 1,730 Service charges on deposit accounts 11 954 2 30 148 162 127 435 1,163 4, 298 5 515 74 Rent received 30, 300 15 121 137 141 484 1,375 8, 385 19, 565 77 Other current earnings 6,429 9 41 50 25 141 412 2,164 3,569 18 Total current earnings 447, 094 44 665 2,983 3,596 2, 600 10, 208 23, 548 102, 274 297, 792 3,384 Expenses: Interest on deposits: Time 48 991 1 71 459 677 547 2,159 4, 976 17,812 22, 033 256 Demand 1,988 6 22 25 19 78 124 702 1,006 6 Bank ._. 751 1 3 4 19 270 453 1 Total 51,730 1 77 482 705 566 2,241 5,119 18, 784 23,492 263 S S a a l 1 a r a i r e i s e s— an o d f fi w cTe a r e s res—employees 44 958 17 201 721 701 470 1, 638 2,742 10, 989 26, 945 534 (other than officers) 85 329 28 193 253 221 1,123 3,024 17, 587 62,155 745 Fees paid to directors and members of executive, discount, and advisory committees ... 1, 866 3 25 36 20 100 167 597 896 22 Interest and discount on borrowed money 342 9 1 5 15 134 163 15 Real estate taxes 12,408 2 14 82 95 70 275 663 3,807 7, 364 36 Other taxes._ _.. ... _. 19 242 2 32 99 110 92 291 867 3, 053 14,516 180 Other expenses 91,915 9 133 544 634 457 1,760 4,420 20, 362 62,996 600 Total current expenses 307, 790 31 488 2,155 2, 535 1,901 7,443 17,136 75, 342 198, 379 2,380 Net earnings ._ 139,304 13 177 828 1,061 699 2, 765 6,412 26, 932 99, 413 1,004 Recoveries, profits on securities, etc.: Recoveries on loans 24,740 9 41 163 215 117 397 998 6,370 16, 383 47 Recoveries on investments 39,663 1 8 97 146 97 507 1,062 9, 254 28, 375 116 Profits on securities sold 72, 808 54 213 368 301 1, 479 3,499 14,987 51,513 394 Allother 10,610 1 9 33 55 44 208 492 3, 586 6,161 21 Total 147.821 11 112 506 784 559 2,591 6,051 34,197 102, 432 578 Losses and depreciation: On loans _. . 52,231 8 61 278 364 239 1,098 2,648 14,832 32, 549 154 On investments 39, 473 7 102 148 150 623 1, 596 11,053 25, 668 126 On banking house, furniture and fixtures 12 320 2 27 122 113 86 363 694 2,980 7,891 42 Allother 31,372 6 20 106 130 123 436 1,016 7,248 22,131 156 Total losses and depreciation 135,396 16 115 608 755 598 2, 520 5, 954 36,113 88, 239 478 Net profits 151,729 8 174 726 1,090 660 2, 836 6, 509 25,016 113,606 1,104 Cash dividends declared4 77, 337 6 74 315 358 267 990 2, 353 11, 091 61, 170 713 Total deposits on Dec. 31, 1936 15,343,276 533 12. 261 63, 030 79.634 63, 039 237, 942 534,017 2,687,107 11,603,173 62, 540 Number of officers on Dec. 31, 1936.. 7, 662 12 144 427 372 229 613 793 ' 2, 016 2,880 176 Number of employees (full and part time) on Dec. 31, 1936 55, 857 1 65 297 328 257 1,006 2,441 12, 805 38, 043 614 Number of banks reporting during the year ended Dec. 31, 1936 1,060 7 67 170 128 73 166 170 189 48 42 1 Corresponding figures for 1935 appear in the 1936 July BULLETIN, p. 528. Due to corrections received after publication the total number of employees as shown in that statement should be 52,833 instead of 52,670, and the number of employees at banks with deposits of $50,000,000 and over should be 35,508 instead of 35,345. 2 Figures differ slightly from those shown at p. 304 of the April BULLETIN due to minor adjustments. 3 Includes 2 banks having no deposits but operating throughout entire year. 4 Includes interest on capital notes and debentures. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

538 FEDERAL RESERVE BULLETIN JUNE 1937 ALL MEMBER BANKS—CONDITION ON SELECTED CALL DATES, JUNE 30, 1932, TO MARCH 31, 1937 [Amounts in thousands of dollars] 1932 1933 i 1934 1935 1936 1936 1937 June 30 June 30 March 5 March 4 March 4 Dec. 31 March 31 ASSETS Loans (including overdrafts) 16, 587,185 12, 858, 099 12, 705, 759 11, 953,152 12,098,516 13, 359, 853 13, 699, 294 United States Government direct obligations 5,627, 854 6, 887,123 8, 667,064 9,820,993 10, 564, 400 11,639,486 10,856, 351 Securities fully guaranteed by United States Government. 180, 888 1,199, 664 1, 879, 722 1, 905, 718 1, 861, 336 Other securities 5, 785, 764 5,041,149 4, 994, 500 5, 297, 641 5, 745, 350 6, 094, 627 6,108,022 Total loans and investments 28,000,803 24,786,371 26,548,211 28,271,450 30,287,988 32,999,684 32,525,003 Customers' liability on account of acceptances 458, 952 424, 263 395, 503 217, 545 167, 534 179,414 202, 067 Banking house, furniture, and fixtures 1,166,233 982, 036 982, 606 1, 003, 788 998, 653 981, 975 981, 712 Other real estate owned 233,014 227,074 290, 329 324, 369 371,344 367, 486 368, 868 Reserve with Federal Reserve banks 1, 997, 656 2, 235,179 3,148,124 4,517,625 5, 784, 077 6, 571, 694 6,613,340 Cash in vault 478, 224 404, 502 486, 086 534, 293 623, 518 697, 380 662, 310 Balances with private banks and American branches of foreign banks • 38, 070 35, 645 27, 314 Demand balances with banks in New York City 590, 880 826, 636 954, 090 1,416,791 1,676,670 1, 599, 810 1, 263, 080 Demand balances wTith other domestic banks 1,139, 890 1,181, 582 1,349,359 1, 849, 269 2,136, 395 2, 318, 810 2,049, 439 Time balances with other domestic banks 2 2 72, 520 120, 334 119,033 112,192 105, 539 Balances with banks in foreign countries 101,070 108, 070 111,282 135,190 56, 429 55, 480 52, 641 Due from own foreign branches 91, 549 106,041 98, 053 38, 083 3,000 14,209 3,787 C C a a s s h h i i t t e e m m s s n in o t p r i o n c p e r s o s c o e f s s c o o l f l e c c o t l i l o e n ction 1, 337,138 1, 485, 343 1,158,995 1, 474, 792 f 1,7 1 1 0 8 , , 0 3 5 0 2 6 2, 5 1 3 2 3 , , 9 1 2 9 75 1, 97 9 3 , , 8 5 6 7 21 Redemption fund and due from United States Treasurer. 32, 548 37, 261 40, 674 32, 620 Acceptances of other banks and bills sold with indorsement 55, 022 7,948 24, 741 2,602 7.221 10, 578 11,087 Securities borrowed 11,664 6,654 6,099 2,009 720 589 1.065 Other assets 216, 388 227, 820 258, 612 327, 397 241, 688 227,193 215,834 Total assets.. 35,911,061 33, 046, 780 35, 925, 284 40, 268,157 44, 240, 698 48,718,333 47, 066, 564 LIABILITIES Demand deposits—Total 17,199,780 17,583,067 19,864,013 24,008,376 28,021,554 31,896,215 29,950,160 Individuals, partnerships, and corporations 11,890,163 11,830,246 12, 251, 863 14,872,114 17, 927,045 20, 970. 304 20,084,779 United States Government 387, 463 806, 297 1, 790, 401 1, 269, 713 599, 587 881, 961 414, 722 States, counties, and municipalities 1,313,569 1, 087, 329 1, 424, 731 1, 861, 412 2,173, 455 2, 329,180 2, 564, 303 Banks in United States 2, 870,029 3, 056, 527 3, 675, 699 5, 095, 059 6,148,144 6, 401, 831 5, 751, 796 Banks in foreign countries 172, 383 145, 750 172, 768 169, 424 394, 026 431, 808 457, 911 Certified and officers' checks, cash letters of credit and travelers' checks, etc 566,173 656,918 548, 551 740, 654 779, 297 881,131 676, 649 Time deposits—Total 10,636,021 8,980,860 9,416,145 10,045,297 10,451,894 10,989,111 11,164,318 Individuals, partnerships, and corporations: Evidenced by savings pass books 7,491,268 6,127,412 6, 746, 532 7, 745, 809 8, 309, 030 8, 991, 216 9,105, 389 Certificates of deposit 1, 349, 514 1, 037, 747 879, 665 884, 424 833, 941 765, 315 758, 293 C O h p r e i n s t a m c a c s o u s n a t v s ings and similar accounts | 772,363 3 5 5 7 8 8 , , 8 6 1 5 2 6 4 5 3 9 6 5 , , 1 6 2 2 49 53 39 3 , , 1 7 9 0 8 8 59 44 6 , , 1 5 9 4 7 8 64 2 7 5 , , 4 3 9 1 8 9 71 63 2 , , 3 0 8 8 0 2 Postal savings 609, 746 788, 492 754, 595 399,113 167,114 104,369 97, 371 States, counties, and municipalities 336, 929 299, 659 304, 926 290, 033 343, 873 296, 229 268, 739 Banks in United States 69, 525 89, 084 91, 846 145,105 151,833 153, 372 152, 766 Banks in foreign countries 6,676 998 7,170 7,907 5, 358 5, 793 Total deposits 37,835,801 26,563,927 29,280,158 34,053,673 38,473,448 42,885,326 41,114,478 Secured by pledge of loans and/or investments 4, 016, 730 3,312,720 2, 773, 520 3,181,586 2, 817, 942 Not secured by pledge of loans and/or investments.._ 25, 263, 428 30, 740, 953 35, 699, 928 39, 703, 740 38, 296, 536 Due to own foreign branches 28,186 23, 529 44, 667 957 70, 831 63, 968 84,142 National bank notes outstanding. 648,906 727,110 786, 514 623, 585 Agreements to repurchase securities sold 62,983 14, 244 10,193 8,130 13,493 1,810 5,873 Bills payable and rediscounts 815,123 191, 228 90,941 16, 553 10, 776 15, 325 17, 740 Acceptances of other banks and bills sold with indorsement 55,022 7,948 24, 741 2,602 7,221 10, 578 11,087 Acceptances executed for customers 483, 064 434, 997 413,794 225, 000 164, 302 173, 572 200, 864 Acceptances executed by other banks for reporting banks_. 6,912 7,302 10, 441 10,166 19, 280 27, 915 25, 225 Securities borrowed 11, 664 6,654 6,099 2,009 720 589 1,065 Interest, taxes, and other expenses accrued and unpaid. _- 109, 927 67, 111 88, 330 79, 444 81, 244 79, 523 98, 510 Dividends declared but not yet payable and amounts set aside for undeclared dividends and for accrued interest on capital notes and debentures 12, 674 16,830 45, 431 33, 216 Other liabilities 192, 553 165, 648 163, 544 126, 055 200, 328 139,117 149,689 Capital notes and debentures ... 125, 673 119,077 109, 827 74, 432 71, 057 Capital stock 2, 440, 467 2, 220, 330 2,378,117 2, 560, 582 2, 511, 884 2, 379, 408 2, 383, 209 Surplus _.. 2, 366, 239 1, 847, 462 1, 724, 409 1, 654, 606 1, 721, 348 1, 936, 370 1,952, 805 Undivided profits—net 510, 696 373, 258 376, 282 419, 272 493,141 560, 324 580,907 Reserves for contingencies« 343, 518 396, 032 401, 381 351, 586 339, 405 309, 817 325,125 Retirement fund for preferred stock and capital notes and debentures 2,186 6,620 14, 828 11,572 Total liabilities (including capital account). 35,911,061 33, 046, 780 35, 925, 284 40, 268,157 44, 240, e 48, 718. 333 47, 066, 564 Net demand deposits 14, 481, 998 14,156, 304 15, 582, 434 19, 508, 098 22, 498, 578 25,449,917 24, 668, 338 Demand deposits—adjusted 7 12,432, 767 12,089,150 13,066,150 15,999,388 19,161,491 21, 647,340 21,352,110 Number of banks 6,980 5,606 6,206 6,422 6,377 6,376 6,367 1 Beginning with 1933, figures relate to license banks only. 2 Included in " Other Assets." 3 Includes $33,418,000 of deposits, the payment of which was deferred by agreement with depositors or otherwise. 4 Includes $34,030,000 of deposits, the payment of which was deferred by agreement with depositors or otherwise. 6 Not reported separately. 6 Included in "undivided profits." 7 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

539 JUNE 1937 FEDERAL RESERVE BULLETIN ALL MEMBER BANKS—CONDITION ON MARCH 31, 1937, BY CLASSES OF BANKS [Amounts in thousands of dollars] All All Central reserve city Reserve Country All national State member banks city member member member member member banks banks banks banks banks New York Chicago ASSETS Loans (including overdrafts) 13, 699, 294 8, 459, 550 5, 239, 744 3, 960, 709 648, 572 4. 886,185 4, 203, 828 United States Government direct obligations 10, 856, 351 6, 802, 590 4,053, 761 3, 356, 274 852, 796 4, 250, 404 2, 396, 877 Securities fully guaranteed by United States Government- 1, 861, 336 1, 350, 087 511,249 472, 658 93, 935 669,090 625. 653 Other securities 6,108, 022 4,069,919 2, 038,103 1,311,407 272,899 1, 805, 207 2, 718, 509 Total loans and investments 32,525,003 20,682,146 11,842,857 9,101,048 1,868,202 11,610,886 9,944,867 Customers' liability on account of acceptances 202, 067 101,855 100, 212 141, 822 8,919 47, 729 3,597 Banking house, furniture, and fixtures 981,712 634, 618 347,094 229, 864 22,386 339, 621 389. 841 Other real estate owned 368, 868 175, 044 193, 824 31, 283 6,617 144, 909 186,059 Reserve with Federal Reserve banks 6, 613, 340 3,918,035 2, 695, 305 2,718,967 481, 871 2,108,118 1, 304, 384 Cash in vault 662, 310 479, 849 182, 461 56, 206 20, 858 263, 818 321, 428 Balances with private banks and American branches of foreign banks 27,314 17,030 10, 284 1,932 3, 552 18, 873 2, 957 Demand balances with banks in New York City 1,263,080 932, 832 330,248 66, 959 66, 769 636, 959 492, 393 Demand balances with other domestic banks 2, 049, 439 1, 619, 322 430,117 54,460 21, 626 840, 409 1,132, 944 Time balances with other domestic banks 105, 539 80, 841 24, 698 39 1,060 48, 596 55, 844 Balances with banks in foreign countries 52, 641 28, 510 24,131 32, 226 1,487 16, 331 2,597 Due from own foreign branches 3,787 3,787 3,787 Cash items in process of collection 1, 973, 621 1,187, 730 785,891 853, 318 114,012 763, 953 242, 338 Cash items not in process of collection 9, 857 7,158 2,699 901 368 3, 503 5,085 Acceptances of other banks and bills sold with indorsement 11,087 7,014 4,073 64 1,202 323 Securities borrowed 1,065 368 697 1,065 Other assets 215, 834 116,842 98,992 66,173 25, 278 19, 511 54,872 Total assets.. 47,066, 564 29, 992,981 17,073, 583 13, 364, 696 2, 643,069 16, 918, 205 14,140, 594 LIABILITIES Demand deposits—Total 29,950,160 18,666,707 11,283,453 10,623,203 1,939,250 10,633,593 6,754,114 Individuals, partnerships, and corporations 20,084, 779 12,115, 400 7, 969, 379 7, 237,178 1,001, 407 6, 833, 037 5, 013,157 United States Government 414,722 289, 699 125,023 129,261 96,136 132,370 56,955 States, counties, and municipalities 2, 564, 303 1,911,920 652, 383 313, 639 202, 878 935,034 1,112, 752 Banks in United States 5,751,796 3, 743, 671 2, 008,125 2,170, 603 595, 746 2, 545, 823 439, 624 Banks in foreign countries 457, 911 234, 232 223, 679 418, 714 5,088 32,304 1,805 Certified and officers' checks, cash letters of credit and travelers' checks, etc 676, 649 371, 785 304, 864 353, 808 37, 995 155,025 129, 821 Time deposits—Total 11,164,318 7,798,852 3,365,466 776,956 440,207 4,411,269 5,535,886 Individuals, partnerships, and corporations: Evidenced by savings pass books 9,105,389 6, 395, 689 2, 709, 700 356, 732 375, 916 3,621,743 4, 750, 998 Certificates of deposit 758, 293 595, 973 162,320 27, 485 31, 235 171,803 527, 770 Open accounts 712,380 345, 260 367,120 371,093 29, 980 249, 659 61, 648 Christmas savings and similar accounts 63,082 41,348 21, 734 3,098 3,057 20,327 36, 600 Postal savings 97, 371 85, 712 11, 659 33, 807 63, 564 States, counties, and municipalities 268, 739 202, 514 66, 225 14, 038 175, 609 79,088 Banks in United States 152, 766 127, 487 25. 279 10 136,523 16, 218 Banks in foreign countries 6,298 4,869 1,429 4,500 1,798 Total deposits 41,114,478 26,465,559 14,648,919 11,400,159 2,379,457 15,044,862 12,290,000 Secured by pledge of loans and/or investments 2, 817, 942 2,128,912 689, 030 438, 909 276, 082 1.230,870 872,081 Not secured by pledge of loans and/or investments.__ 38, 296, 536 24, 336, 647 13, 959, 889 10, 961, 250 2,103, 375 13,813,992 11,417,919 Due to own foreign branches 84,142 67,155 16, 987 84,142 Agreements to repurchase securities sold 5,873 751 5,122 2,729 2,316 Bills payable and rediscounts 17, 740 12, 267 5 473 1, 250 1 000 4, 625 10, 865 Acceptances of other banks and bills sold with indorsement 11, 087 7,014 4,073 9,498 64 1,202 323 Acceptances executed for customers 200, 864 104, 229 96, 635 143, 665 8,392 46, 253 2, 554 Acceptances executed by other banks for reporting banks. 25, 225 14,210 11,015 15,139 928 1,072 Securities borrowed 1, 065 368 697 1,065 Interest, taxes, and other expenses accrued and unpaid 98, 510 59, 699 38,811 22, 220 10, 219 42, 394 23, 677 Dividends declared but not yet payable and amounts set aside for undeclared dividends and for accrued interest on capital notes and debentures 33, 216 19, 375 13, 841 17, 228 1,287 11,016 3,685 Other liabilities 149, 689 51,422 98, 267 77, 865 3,608 36, 028 32,188 Capital notes and debentures 71, 057 71,057 625 225 31,152 39,055 Capital stock 2, 383, 209 1, 582, 297 800, 912 563, 690 125,850 768, 343 925, 326 Surplus 1, 952, 805 1, 057, 241 895, 564 795, 707 61, 230 588, 291 507, 577 Undivided profits—net 580, 907 385, 264 195.643 133, 661 19, 063 202, 225 225, 958 Reserves for contingencies 325,125 157, 432 167, 693 96, 917 31, 728 128, 220 68,260 Retirement fund for preferred stock and capital notes and debentures 11,572 8,698 2,874 201 18 3,192 8,161 Total liabilities (including capital account). 47, 066, 564 29,992, 981 17, 073, 583 13, 364, 696 2, 643, 069 16,918,205 14,140, 594 Net demand deposits 24, 668, 338 14, 929. 468 9, 738, 870 9, 648, 466 1,736,950 8,393,179 4, 889, 743 Demand deposits—adjusted7 21,352,110 13, 211. 375 8,140, 735 7,051,307 1,128, 268 7,159,143 6, 013, 392 Number of banks 6,367 5,305 1, 062 37 12 338 5,980 For footnotes, see p. 538. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

540 FEDERAL RESERVE BULLETIN JUNE 1937 ANNUAL REPORT OF THE BANK FOR INTERNATIONAL SETTLEMENTS The seventh annual report of the Bank for of restrictive measures must inevitably be International Settlements, covering the year applied, whereas in its opinion the only sound ending March 31, 1937, was submitted by policy was that which ensured freedom of Mr. L. J. A. Trip, president of the Bank, to action and, by allowing active economic forces the general annual meeting of shareholders to operate with maximum facility, enabled on May 3, 1937. Sections of the report are normal relations to be resumed with other given herewith:1 countries. The Financial Committee to which the report was submitted recorded its general agreement with the conclusions and stated EXCHANGE RATES, PRICE MOVEMENTS AND that the experience of recent years had clearly FOREIGN TRADE demonstrated that there are limits to the ex- EXCHANGE RATES tent to which a stable internal equilibrium is attainable by a process of deflation (reduc- In the course of 1935 a fair measure of station of costs). bility in the world's exchange position was As became known later—the secret having achieved after the period of great pressure been well kept—the French Government had to which first the British and then several for some time been discussing with the Govcontinental markets were exposed in the first ernments of the United States and the United half of that year. In fact, after the devalua- Kingdom the arrangements to be made in tion of the Belgian currency on April 1 and case of a change in the value of the French the Danzig currency on May 2, 1935, the franc, and on September 25, 1936, five years exchange rates of all European and practiand four days after the suspension of the cally all extra-European currency moved gold standard by Great Britain in 1931, the within very narrow limits for more than a French Government made known its decision year. The underlying position was however to propose to its Parliament a readjustment beset with great difficulties and monetary of the value of the franc. This announceconfidence had not then been restored interment was made in a declaration, which will nationally. be found in Annex VII together with the In 1936 the situation in France was affected simultaneous declarations made by the Britby the political changes consequent upon the ish and United States Governments, embodyelections in May. The outward movement of ing the so-called Tripartite Agreement. funds from the French market, which had The most important point to retain from gone on intermittently since 1933, began these declarations is that the readjustment again to assume large proportions and, after of the French franc was welcomed by the a respite in the summer of 1936, attained in other two governments; it was regarded by September a very high figure. These losses, them not as a setback to collaboration but as added to previous reductions in the gold rea means of establishing more solid foundaserves, led to an intense discussion about postions for the stability of international ecosible devaluation both among the public and nomic relations. In conformity with the by expert bodies. The Report of the Economic attitude thus adopted, the governments of Committee of the League of Nations to the the United Kingdom and the United States Council on September 14,1936, dealt with the not only abstained from taking any counternecessity of filling the gap which separated measures against the action of the French the price levels of the majority of the coun- Government, but joined with that governtries on a gold standard (whether real or ment in declaring their intention to continue nominal) from those of the majority of the use of appropriate available resources so the countries with depreciated currencies. as to avoid as far as possible any disturbance While the Committee stated that it had no of the basis of international exchange resultwish to pronounce dogmatically for or against ing from the proposed readjustment and to monetary devaluation, it pointed out that in arrange for consultations for this purpose order to maintain an overvalued currency in whenever necessary. While there was no the face of opposing tendencies a whole series pooling of resources, it was made clear that 1 The report, available in English, contains in addition sections efforts would be made to maintain orderly dealing with the general economic situation, developments in conditions on the exchange markets. Morecentral and commercial banking during the year, and current activities of the bank in detail. For earlier reports see BULLETIN over, the three governments emphasized the for June 1936, 1935, 1934, 1933, 1932 and July 1931. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1937 FEDERAL RESERVE BULLETIN 541 importance they attached to the development Bank of France was prohibited and the of international trade and especially to ac- authorization of the bank was also required tion being taken to relax progressively quotas for transactions in gold. and exchange controls with a view to their Following the publication of the Tripartite abolition. Finally, other countries were in- Agreement, measures affecting the currency vited to co-operate and the hope was ex- position were also taken in the following pressed that no currency depreciation would countries: be undertaken in order to obtain unreason- In Switzerland it was announced on Sepable competitive exchange advantages which tember 26, 1936, that the Federal Council would hamper the efforts to restore more had decided to alter the value of the franc and stable economic relations. In the declaraby a decree of the following day the Swiss tions there is an implied distinction between National Bank was released from the oblia currency adjustment likely to produce a gation to redeem its notes in gold or gold more stable basis for international economic foreign exchange; on the other hand, it was relations and the reduction of the exchange still obliged to maintain the gold cover of value of a currency to such a low point as its notes in circulation at the level of at least to be regarded as a measure of competitive 40 percent. It was also required to maintain exchange depreciation. the gold parity of the franc at a value between On October 1, 1936, six days after the 215 and 190 milligrammes of fine gold, i.e. announcement of the Tripartite Agreement, within a margin corresponding to a 25.94 to a new monetary law in France relieved the 34.56 percent devaluation from the old par- Bank of France of the obligation to redeem ity. By special instructions from the Fedits notes in gold and provided for the devalua- eral Council the bank was further directed tion of the franc within a margin extending to keep the franc at a level approximately 30 between 25.19 and 34.35 percent of the pre- percent below the old parity and to earmark vious parity. The provisions for a margin in a special account the book profits resulting would appear to have been made in order to from the revaluation of its gold holdings at enable the French authorities to adapt the a rate of devaluation of 25.94 percent. On value of the franc to the varying needs of the September 26, 1936, the gold holdings of the situation. The United States Government Swiss National Bank amounted to 1,537,000,is still entitled to alter the gold content of 000 francs, which were revalued to 2,075,the dollar within a margin of 50 to 60 per- 000,000 new francs, giving a book profit of cent of the dollar's previous value and the 538,000,000 francs. British authorities retain full freedom with In the Netherlands a Royal Decree was regard to the exchange value of the pound. issued on September 26, 1936, prohibiting At the time of the adjustment of the franc the export of gold coins and gold bullion, and the gold holdings of the Bank of France this decree was ratified by the Act of Sepamounted to 50,218,000,000 francs, which tember 30, 1936. By a further Act of the revalued at a rate of depreciation of 25.2 same date an equalization fund was estabpercent gave a book profit of about 17,000,- lished for the purpose of influencing foreign 000,000 francs. Of this profit about 7,000,- exchange rates by buying and selling money 000,000 francs were credited to the accounts transfers, bills and similar paper payable of the Treasury and 10,000,000,000 francs abroad and gold. The Minister of Finance allotted to an exchange equalization fund, was authorized to make advances to the which was established with the task of regu- fund to a maximum of 300,000,000 guilders lating the relations between the franc and and to procure the amounts required for this foreign currencies and maintaining the par- purpose by the sale of Treasury paper or by ity of the franc in relation to gold within the borrowing on the security of such paper. limits fixed. The fund also received the While the exchange funds authorized in amount of gold which, in accordance with the France and Switzerland were constituted monetary law, was to be surrendered at the from the profits arising from the revaluation previous par rate of the franc by all persons of the gold holdings of the central banks (in or corporate bodies domiciled in France who accordance with the precedent set by the owned gold ingots, bars or coins on Septem- United States), the fund authorized in the ber 26, 1936. The importation or exporta- Netherlands obtained its working capital by tion of gold without the authorization of the the issue of Treasury bills (thus following Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

542 FEDERAL RESERVE BULLETIN JUNE 1937 the method adopted in the case of the Ex- valued provisionally on the basis of the upper change Equalization Account in London). No limit for the value of the crown. The book provision was made in the Netherlands for profits resulting from the revaluation were any margin of devaluation and, while the credited to the State, but the amount was left fund intervened in the market, the exchange as a standing deposit at the National Bank rates of the guilder were allowed to fluctuate to enable the bank to carry out the duty somewhat under the influence of the move- placed upon it of maintaining the exchange ments of funds. In the Dutch East Indies the value of the crown. gold standard was also suspended. The gov- In addition to these more outstanding ernment declared that the parity of the cur- measures in seven countries, a series of other rency with that of the mother country would monetary changes was made following the be maintained. announcement of the Tripartite Agreement. In Latvia by a decision of the Cabinet In Turkey, on September 28, 1936, the Gov- Council on September 28, 1936, the lat, which ernment adopted sterling instead of the up to that date had been maintained at its French franc as the basis for the currency. par value equal to the Swiss franc, was de- The buying rate was fixed at £T 6.35 and the valued and attached to sterling at a rate of selling rate at £T 6.38 to the pound sterling, 25.22 lats to the pound (the rate obtaining with little change from the rates previously before September 21, 1931), the change in- ruling. volving a devaluation of about 40 percent. In Greece, on September 29, 1936, the Bank At the same time the gold holdings of the of Greece, in agreement with the Govern- Latvijas Banka were revalued on the basis ment, decided to attach the currency to the of the average rates quoted on the Riga ex- pound instead of maintaining, as previously, change on September 28 and 29, 1936. The a stable rate in terms of the French franc. book profits resulting from the revaluation The purchase price for sterling was to be were allotted to an exchange stabilization fixed, by decision of the Governor of the bank, fund. between a minimum rate of 540 and a maxi- In Italy, by the Royal Decree Law of Octo- mum of 550 drachmae, and a decision was ber 5, 1936, the value of the Italian lira was taken to fix the purchase price at 546 and the made equal to 4.677 grammes of fine gold for selling price at 550 drachmae to the pound every 100 lire nominal value, representing a (against a rate of about 540 preceding the devaluation of 40.94 percent (i. e. the same change). as the devaluation of the U. S. A. dollar) in In the U. S. S. R. a decision was taken to relation to the previous parity, provision maintain the exchange link with the French being made in the decree for a possible fur- franc, but the rate of exchange was altered ther devaluation within a margin of 10 per- from 3 francs equal one rouble (as fixed in cent. The Banca d'ltalia was authorized to February 1936) to a rate of 4.25 francs to a revalue its assets in gold and foreign ex- rouble. change on the basis of the new value of the In Rumania reference was made in a Royal lira, the surplus resulting from the devalua- Decree dated November 6, 1936, to an authortion being transferred to the State. ization given to the National Bank on June 27 In Czechoslovakia a law of October 9, 1936, to pay a premium of 38 percent on fine gold, fixed the value of the Czech crown between and provision was made for the gold holdings 32.21 and 30.21 milligrammes fine gold, this of the bank to be revalued at that rate, the margin representing a devaluation of from increment resulting from this revaluation 13.3 to 18.7 percent in relation to the existing to be used in accordance with a convention parity, and of from 27.7 to 32.2 percent in agreed upon by the State and the National relation to the old parity of 1929. Within Bank. After the allocation of various these limits the Government was empowered amounts for special reserves and repayments to fix by decree the precise value of the crown the balance accruing to the State was to be in relation to gold, and on the same day the used exclusively to cover exceptional military gold content of the crown was fixed at 31.21 expenditure. milligrammes fine gold, representing a deval- If comparison be made between the curuation of 30 percent in relation to the 1929 rency changes in the autumn of 1936 and the parity. The reserves of gold and foreign ex- wave of depreciation which swept over the change held by the National Bank were re- world in the autumn of 1931, some very Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1937 FEDERAL RESERVE BULLETIN 543 marked differences are to be noted. In 1931, By these various arrangements the monewhen the gold standard was suspended in tary authorities in the six countries which Great Britain and a number of other coun- have adopted the principles of the Tripartite tries, the exchange values of the currencies Agreement extended to one another techniwere as a rule left to find their own level in cal facilities for the changing of their respecthe markets with little or no support from tive currencies into gold. The United States, the mostly depleted reserves of the central Belgium and Switzerland have indicated the banks. There followed a period of often vio- price in their respective national currencies lent and highly disturbing fluctuations, which at which they will for the time being accept were only gradually brought under control. and part with gold, while the other countries In 1936, on the other hand, provisions were have not gone so far in fixing a price in made in almost every case for the mainte- advance. The monetary authorities in counnance of the exchange rates at a certain point tries which have not adhered to the Tripartite or within certain limits and special funds Agreement have not the same clearly defined were instituted or other steps taken to avoid rights to obtain gold against currency. Apart undue fluctuations. from such arrangements as may be made with In order to establish effective co-operation regard to individual transactions, gold can be between the monetary authorities in the coun- obtained by them only against the belga as the tries which had joined in the Tripartite National Bank of Belgium is bound to redeem Agreement certain technical arrangements its notes with gold, which in fact may be were agreed upon to enable the competent exported, and against sterling as gold can be bodies in the United States, Great Britain and bought at the current price on the London France to obtain, each of them on the two market within the limits of the available other markets concerned, gold in exchange supply. for the currency held by them. The Secre- It would contribute to the smooth conduct tary of the U. S. Treasury announced on Octo- of international monetary relations if techber 13, 1936, that, subject to twenty-four nical facilities similar to those agreed upon hours' notice, he would sell gold for imme- by the countries which have adhered to the diate export to, or earmark for the account principles of the Tripartite Agreement were of, the exchange equalization funds of those more generally adopted, especially as gold is countries whose funds likewise were offering being used increasingly for the settlement to sell gold to the United States, provided such of exchange balances. The present more offerings of gold were at such rates and upon extensive use of gold is due, in part, to the such terms and conditions as the Secretary restricted holdings of foreign currencies in would deem most advantageous to the public the possession of central banks and exchange interest. The Secretary would announce funds (outside the sterling area), in part, to daily the names of the foreign countries com- the smaller scope afforded to private arbiplying with the foregoing conditions—on the trage transactions once the exchange markets same day he named Great Britain and France. have become dominated by the intervention of Statements were also issued by the British central monetary authorities, and, in part, to Treasury and the French Ministry of Fi- a reduction, at least for certain countries, in nance, announcing the day-to-day working the total volume of commercial and other arrangements which had been agreed upon. credits between one market and another. Already on September 26,1936, the Belgian Technical methods are'being developed dif- Government had declared that it adhered to fering from those which were employed in the principles of the Tripartite Agreement, working the gold and gold exchange standand on November 21 the Swiss and Dutch ards. The new system may be described as a Governments also announced their adherence daily gold settlement system dependent upon to the principles of this agreement. Three the action of the monetary authorities. In days later the Secretary of the U. S. Treasury the last year the Bank for International Setincluded Belgium, the Netherlands and Switz- tlements has similarly seen a great increase erland in the list of countries complying with in the gold transactions it has carried out for the conditions for obtaining gold from the the account of its customers, over and above U. S. Treasury; the British Treasury and the all figures known in the past. French Ministry of Finance also made it During the year transfers of funds from known that these three countries had become one market to another have continued on a parties to the agreement. large scale and the effects of these transfers Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

544 FEDERAL RESERVE BULLETIN JUNE 1937 have again overshadowed the effects of sea- country free from exchange restrictions sonal and similar movements. When, how- which remains on gold at the parity existing ever, spot rates are kept more or less rigidly before the depression began. Among the at the same point, forward rates often give countries which apply exchange restrictions, an indication of the direction and strength Germany, Poland and Lithuania have not of a movement of funds. In the past year altered the par value of their currencies and the quotations on forward exchange markets in the clearing agreements concluded by have largely reflected the distrust felt as to these countries the par value is taken as the the future value of currencies under pressure. basis for the accounts. Certain exceptions The discount on the forward market for the have been allowed by Germany under special French franc reached the high figure of about arrangements, mostly with overseas coun- 35 percent (on a yearly basis) in the middle tries, but the field of these exceptions has of June and the second half of September recently been restricted—particularly by a 1936. decree issued in February 1937. The "registered mark," available mainly for tourist purposes, was quoted at a discount varying Three months Forward Rates in London between 40 and 56 percent during 1936. It (weekly averages) may be mentioned that in Italy lire are made Zurich available to tourists at a price about 10 percent below the ordinary rate. Exchange restrictions were introduced by Poland in the spring of 1936 and in a number of countries, notably Germany, Greece, Hungary and Yugoslavia, which have retained the exchange control already existing, the methods have been perfected and more stringent measures taken to prevent leakages and evasions. On account of the civil war the value of the Spanish peseta has fallen rapidly. A debt moratorium was declared on August 2, 1936, and great difficulty has been experi- That such high rates have been quoted has enced in dealing with the many problems arisbeen partly due to a restriction of the amounts ing from the impossibility of fulfilling conput at the disposal of the forward markets, tracts and meeting maturing obligations. the central banks being anxious to limit the The following graph shows the sterlingpossibilities of exporting capital by means of dollar rate from the beginning of 1936. forward transactions. Naturally such high rates wrere an obstacle to genuine business and in some instances special facilities were arranged to meet the needs of bona fide trade transactions. These rates for forward French francs have been quoted at a heavy discount also since the devaluation, while the forward rates for the Swiss franc and the guilder have kept within narrow limits. Since the departure from the gold standard spot quotations of the guilder have reflected There is a difference of 4 percent between variations in the movement of funds into the the highest and the lowest quotation in the domestic market. In the last quarter of 1936 period covered by the graph. On September the exchange value of the guilder in terms of 25, 1936, the sterling rate influenced by the the dollar moved between a maximum and flow of funds from France rose to $5.06, dropminimum depreciation of 22.67 percent on ping to $4.93 on September 28 and to $4.87 October 5 and 19.54V2 percent on several at the beginning of November. Changes in days in December. the dollar-sterling rate remained narrow up The gold standard having been suspended to April 1937, when somewhat wider movein France, Switzerland and the Netherlands, ments occurred. Latvia, Greece and Turkey, there is, apart from Albania, no longer any as mentioned above, have joined the sterling Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

545 JUNE 1937 FEDERAL RESERVE BULLETIN area and in the autumn of 1936 the Uru- ness towards the end of 1936 and in January guayan currency was also linked to sterling. 1937 exchange restrictions were imposed The "free peso" of the Argentine appreci- largely to prevent heavy semi-speculative imated in the course of the year, and in Decem- ports. There have been no private exports ber 1936 the official selling rate was lowered of capital such as those from France but from 17.00 to 16.00 pesos per pound sterling, large Japanese investments in Manchukuo the buying rate remaining at 15.00. This and heavy military expenditure have added change reflects a distinct improvement in the to the strain caused by the increase in the adexport trade and budget position. South verse trade balance from yen 15,000,000 in American countries in general have bene- 1935 to yen 135,000,000 in 1936. It is recfited from the rise which has occurred in ognized that the rapidly rising prices in the prices of raw materials. The Brazilian cur- country would render a further devaluation rency appreciated to the extent of nearly 10 of the yen particularly dangerous. In Janpercent over the year 1936; on October 15 uary 1937 the rate of Is. 2d. was officially the currency was attached to the dollar and recognized, the Finance Minister announcing more normal conditions were established on that the exchange would remain pegged at the exchange market. this rate and in March and April gold was Peru and Venezuela remain the only South exported to the United States. The gold re- American countries in which no exchange serve of the Bank of Japan amounts to some control is in force, but the restrictions exist- yen 1,600,000,000 at present prices, while ing in the other countries have in the past over 100,000,000 yen are obtained annually year as a rule been eased in their practical from domestic gold mines. The Manchukuo application and the transfer of funds has currency, the yuan, has been maintained at been facilitated. In Chile, it should be men- par with the Japanese yen. tioned, foreign exchange for the import of Since breaking the link with silver the Chiproducts qualified as luxury articles is only nese dollar has been maintained at a stable available under certain conditions and at a value with the result that fluctuations of the premium of 35 percent above the ordinary rates of exchange in relation to the United rate, but otherwise there has in general been States dollar and sterling have been reduced a consolidation of foreign exchange rates. to a minimum. In 1936 the import surplus of merchandise diminished considerably and including the export of silver an active bal- Argentine Exchange Rates (in pesos per £ i) ance was obtained. FOREIGN TRADE OF CHINA IN 1938 [In millions of Chinese silver dollars] ! Mer- ! chandise Silver Gold Exports 705.7 254.3 19.1 979. 1 Imports 941.5 4.7 1.1 947.3 Balance -235. fi +249. 6 +18.0 +31.1 The Japanese currency was adversely af- Of the C.S. $254,300,000 of silver exports, fected inter alia by the enhanced prices of C.S. $216,900,000 (corresponding to 153 milraw material imports (since the abandon- lion ounces) were exported to the United ment of the gold standard in 1931 the devel- States. During the year the Chinese authoropment of prices in foreign trade has been ities sold large quantities of silver to the U. S. unfavorable to Japan—the average price of Treasury Department, though the exact exports increasing by some 50 percent, amounts and the price paid have not been while the prices of imports have more than announced. Against the silver sold, the Chidoubled). The exchange rate, which has nese authorities obtained United States dolbeen maintained on sterling by the unofficial lars which were in part converted into gold operations of the Yokohama Specie Bank for and the funds thus obtained enabled them to four years at Is. 2d., showed signs of weak- consolidate their monetary position. In May Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

546 FEDERAL RESERVE BULLETIN JUNE 1937 1936 the Chinese Government announced in the monetary field. In a declaration on that it had been decided to maintain an ade- September 30 the President of the Reichsquate reserve of gold, silver and foreign cur- bank explained inter alia that the German rencies as cover for the note circulation and Government and the Reichsbank would not that the holdings of silver would represent add to the uncertainty of the international a minimum of 25 percent of the notes out- monetary situation by any change in the standing; that further increases would be value of the Reichsmark. Though the shortmade in the holdings of gold and foreign cur- comings of a system of exchange control as rencies ; and that silver token coins of a half practiced in Germany were recognized, this and a full dollar would be issued. Moreover, system could not be abolished simply by the restrictions on the artistic and industrial use devaluation of the mark. The German Govof silver were abolished. It is expected that ernment would, however, be ready at any by the middle of 1937 the transformation of time to take part in efficacious international the Central Bank of China into a central re- negotiations aiming at greater freedom of serve bank will have been completed. international trade and payments on the un- Apart from the Spanish currency which derstood condition, emphasized in the threehas lost ground, the exchange position has power declaration, of the safeguarding of been maintained practically stable since the national interests. readjustments in the autumn of 1936. The While therefore the underlying conditions conclusion of the Tripartite Agreement was vary from country to country and there is a a recognition of the fact that no country can diversity in the emphasis laid on different alter the external value of its currency with- aspects and in the precise interpretation of out affecting the relative position of other the measures taken, there is undoubtedly a currencies and that the exchange fluctuations common desire to construct a monetary basis of one currency, particularly an important which will provide the greatest possible equione, are the legitimate concern of all nations. librium in the system of international ex- The Agreement also recognized that the basis change and thus facilitate the development for exchange equalization must be gold and of international trade. by technical arrangements provided a mechanism for the settlement of balances. PRICE MOVEMENTS At the meeting of the Board of the Bank In the year under review the recovery in for International Settlements on October 12, business has been reflected in the strong up- 1936, a resolution was passed taking note ward trend of prices. The following graph of the various measures adopted and "again shows the movement of wholesale prices in drawing attention to the urgent necessity of national currencies for four important counassuring a general stabilization of exchange tries in the period 1929-1937, reduced to the rates". The previous week the Chancellor common basis of 1929. of the Exchequer had made the following statement: Wholesale Prices (Index figures 1929 = 100) "... I do not see any reason to alter the view which I have expressed before, that in the end we will probably come back to an international monetary standard on the only basis which appears to give general confidence. Of course, it would be necessary before we did that, to provide security against those violent fluctuations in the value of gold, as expressed in terms of commodities which have occasioned so much disturbance in recent years. If we can do that—and that is a matter for further international co-operation—then I do not see myself any insuperable difficulties in the way of our ultimately arriving again at a currency system based on the free exchange of gold. . . ." (London, 6th October 1936) The Swiss National Bank in its annual re- After the marked rise in prices that had port for 1936 finds the importance of the Tri- occurred in the autumn of 1935 there folpartite Agreement to lie particularly in the lowed a period of relative stability in the first fact that it created a basis for collaboration half of 1936, in which some prices tended Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1937 FEDERAL RESERVE BULLETIN 547 even to decline slightly. The turning-point upward trend of prices. Depreciation of a came in the course of the summer. For world currency in terms of gold enters among such trade the development of prices in Great factors, not only because it may re-establish Britain and the United States is of the great- a better relationship between domestic and est importance. It will be seen from the foreign prices but also because of its effect graph that in these two countries the upward on the money markets and the volume of gold movement continued with great strength all production. It is significant that the readthrough the autumn and into 1937. The in-justment of currencies in the autumn of 1936 crease in armaments expenditure led to a caused no dent in the world price curve. It spectacular rise in the prices of metals and came at a time when world prices were rising certain other staple commodities. A more (and not, as the depreciation of sterling, in widespread influence was, however, exerted the midst of an exceptionally severe depreson the price level by the increase in effective sion) and it was generally regarded as redemand as revealed by the larger volume of storing monetary equilibrium of a kind likely retail sales concurrent with a rise in national to facilitate the revival of international trade. incomes and a renewed activity in industries The following table shows the increase in producing capital goods. British prices during 1936 in each of the In the United States the national income groups into which the Board of Trade index (technically: income paid out) was about is divided: $60,000,000,000 in 1936, according to estimates of the U. S. Department of Commerce, WHOLESALE PRICES IN GREAT BRITAIN as compared with the low level of $45,000,- [Averages 1930=100] 000,000 in 1933; and it is reported that distribution of commodities to consumers in- De- De- Percent cember, cember, increase creased throughout 1936 at a more rapid rate 1935 1936 in 1936 than in any other year of the recovery period. In Great Britain the rise in retail sales from Cereals - __._. 91.8 118.1 +28.6 Meat, fish and eggs 82.4 85.0 + 3.2 1935 to 1936 was at the rate of 7 percent, i. e.Other food and tobacco 91.0 98.1 + 7.8 at a higher rate than in any year since 1932 Total food and tobacco _ __ 88.6 99.3 +12.1 (the first year for which statistics of retail Coal 108. 1 111.2 + 2.9 sales were collected). Iron and steel ._ . _ ._ 102.1 110. 5 + 8.2 Non-ferrous metals 91.7 106.6 +16.2 The growth of demand in the wholesale Cotton . 88.9 94.5 + 6.3 trade at times became very intense, especially W Ot o h o e l r textiles.. _ 9 7 7 4 . . 7 4 1 7 2 5 2 . . 5 7 + + 2 5 1 . . 6 5 as many buyers placed large forward orders Chemicals and oils 93.6 97.1 + 3.7 Miscellaneous 87.5 97.4 +11.3 partly to anticipate price increases and to be Total industrials and manufactures. 92.9 101.6 + 9.4 assured of supplies adequate to an increased volume of business. It is particularly notice- Total all articles 91.5 100.8 +10.2 able that since 1933 or 1934 there has been a shift of location of stocks from producing to Besides wool, the largest increases are consuming centers. A decline in the visible found in cereals and non-ferrous metals. As stocks of raw materials while production of regards cereals, the increase is due mainly to them is increasing is a sign of industrial ac- a shortage of supply resulting from drought tivity, but stocks held by manufacturers or in America and an unusually rainy summer wholesale merchants tend to increase when in most importing countries in Europe. Nonbusiness improves and prices are rising. The ferrous metals have been particularly afposition is naturally much healthier when fected by the demand resulting from armastocks are held voluntarily by manufacturers ments. The increase in armaments expendiinstead of involuntarily by the original pro- ture has had a distinct effect on prices but ducers. As effective demand has strength- this should not be overrated. The increased ened and stocks have been cleared, higher demand, for instance, in the United States quotas have as a rule been allowed for the market has on the whole been a more imporproduction or export of commodities subject tant factor. Something like 40 percent of the to international schemes of regulation. world production of rubber, copper and sev- Obviously all the factors which influence eral other industrial materials is absorbed by the trend of economic recovery must be taken the United States market, and the conditions into account in appraising the causes of theof business in that country are therefore of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

548 FEDERAL RESERVE BULLETIN JUNE 1937 paramount importance for the trend of demand and a certain decline in the United prices. States output as a result of the drought. In The following graph shows the price move- 1931/32 and 1935/36 world production was ments of main groups of commodities in the hardly changed at 26,250,000 American run- United States since 1929. ning bales, but of this total the American production fell from over 60 to slightly under 40 percent. To a large extent the decline in U. S. A. Wholesale Prices (1926 = 100) American production was the result of official planning; in the meantime, however, production in the rest of the world increased by over 60 percent and prices improved to the advantage of those countries, such as Brazil and Egypt, which have taken the place of the United States in the world's supply. Wholesale Prices in France (1914 = 100) 700 \ GOO 600 e,,,, •'• 1 . 9 ! 2 •• 9 1930 1932 1933 1934 1935 fj - I 500'• "'•• **. National products Prices for industrial commodities ("non- \ agricultural commodities" as shown in the 400 \ N f 1 400 graph) began to move upwards in the summer of 1936 after having remained practi- 300 m portedproducts^ "* 300 cally stable for two and a half years. The recent rise in prices has affected a wide range 200 of goods, raw materials as well as semi-manufactured and finished products. 1007ii.ii.iii i ! : : MIMIMIM ..!.,!..I.. , 19Z9 1930 1931 1932 1933 193^- 1935 1936 1937 Among the few commodities which registered a fall in price during 1936, butter shows the most marked decline. This commodity fell by not less than 15 percent on the Wholesale Prices (1929 = 100) British market, which is of special importance because it absorbs more than twothirds of all exported butter. Recently consumption in Great Britain has risen from year to year but the price has nevertheless 90 — 90 fallen. In most exporting countries the export of butter has been subsidized in one itay- i y / 80 form or another and production has thus been increased in spite of falling prices. On 70 \ <\ *^ rland/ *' 70 the other hand, the price of wool rose by 60 60 about 25 percent in 1936, wool being an ex- V. ^Netherl^nds ample of an agricultural product which has 50 50 been hardly affected at all by artificial assistance to maintain the price during the depres- ^ 19Z9 1930 1931 1932 1933 I93<f 1935 1936 1937 '* sion. Australia, which is the country most concerned, is reaping the reward for the drastic policy she pursued in the depression Among the countries which adjusted their years of selling all wool supplies without the currencies in the autumn of 1936, France was accumulation of stocks to hang over future the one in which the rise of prices was the markets. most important; it was effected not only by The price of cotton stiffened somewhat devaluation at a time when world prices were during the year in response to increasing Irising, but also by a series of measures, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

549 JUNE 1937 FEDERAL RESERVE BULLETIN largely of a social character, that raised inter- sums in the past and during the depression nal costs of production. The graph shows, met with considerable losses. separately for imported and national prod- In a period of recovery the initiative ucts, the movement in prices from 1929 to comes from the large industrial countries date. The price index of national products, which are obliged to import larger quantities which, as may be seen from the graph, of raw materials to meet the requirements rose steeply from the middle of 1935, is of expanding industrial production. Such strongly affected by the prices of agricultural imports are a sign of reviving activity and products. cannot be taken as an indication of some per- In Holland and Switzerland the rise in manent disequilibrium in the balance of payprices since devaluation has been less marked ments. The strengthening of the purchasing than in France. Italian prices rose rapidly power of overseas producers will in due time during 1935 but since the devaluation the enable them to expand their imports of manuincrease has been relatively moderate. factured articles. When conditions are rapidly changing it is The adjustment of the lira was accomnot easy to determine whether any given curpanied by the prohibition for two years of rency ought or ought not to be regarded as any rise in rent, water, gas, electric power, overvalued. Indices of wholesale prices cerrates and transport tariffs, while the emertainly cannot be taken as a sufficient measure gency duties on raw materials were removed of the inherent value of the different currenor substantially reduced; since then measures cies. Account must also be taken of changes have been taken to control the price movein the cost level and of other elements affectments of all commodities and services. A ing current balances of payments which do price commission has also been appointed in not lend themselves easily to international Switzerland and certain increases in prices comparison. It is as a rule easier for a prohibited. In Germany, Italy, Poland and country to attain equilibrium on the foreign some other countries increasingly strong account when world prices are rising than measures have been taken to prevent an undue when they are falling. The present tendency rise in prices. As part of the German Fourtowards a rise in prices, though most marked Year Plan a price commissioner was apin raw materials, is also definitely permeating pointed with the task not only of controlling to the cost of living. costs of living but of supervising the whole During 1936 the increase in the cost of livnational price structure. By decree, price ing in Great Britain was at a rate of nearly increases if not specially authorized are 3 percent; in the United States slightly less; forbidden, in particular for all requirements in the Netherlands, in spite of the devaluaof daily life, for the whole agricultural trade tion, nt> increase; in Switzerland an increase and industrial production, transport of goods of 2 percent; in Italy about 6 percent and in as well as services; the decree also covers any France still more, the upward movement in modification in the terms of payment and dethe last-mentioned country being influenced livery and any indirect increase in prices by by the legislative and other measures which the substitution of inferior materials. have been taken affecting the cost of produc- Higher prices and increased demand for tion. In Germany and Austria, on the other raw materials have naturally improved the hand, the index shows hardly any change. position of those primary commodity coun- In the large majority of countries where the tries which were severely hit by the depres- cost of living has gone up the increase began sion. The remarkable change in economic to be more accentuated in the winter months conditions in the Argentine since the mid- of 1936/37. The movement is thus of recent dle of 1936 is directly due to the sharp rise date and has so far not had very much effect of cereal and linseed prices following the in the direction of a modification of import drought and dust-storms in the United States restrictions and other measures which tend to and Canada. The outlook for Brazil and keep up the cost of living. It has, however, other South American countries is also affected the movement of wages in a number brighter. The improvement in the primary of countries and has in general intensified the producing countries should lead to a higher problems of the labor markets. return on the capital invested in them, to the The following graph shows the developbenefit of those countries such as England ment of wholesale prices in Great Britain and the Netherlands which invested large from 1800 onwards. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

550 FEDERAL RESERVE BULLETIN JUNE 1937 country benefiting particularly from the rise Wholesale Pricesin Great Britain(1900= 100 in the price of rubber. South African ex- — ports, consisting mainly of gold, continued the steady rise of recent years. Imports also increased by 15 percent and it is of interest / to note that in 1936 South Africa was the VA K most important customer of the United King- T J dom, India losing the first place which she •^ had held for many years. , In the countries producing raw materials : and foodstuffs, exports with few exceptions 1800 1810 1820 1330 1850 1860 1870 1880 1890 1900 1910 1920 1930 1935 ' have risen more than imports, the improvement in purchasing power not yet having led It took thirty years up to the end of the to larger purchases abroad. Indeed in the 'forties before the decline in prices following case of the Dutch East Indies imports rose the Napoleonic wars came to an end and the only slightly in comparison with the previous curve turned in an upward direction. It year. On the other hand, imports increased would now seem as if the decline in prices more than exports in a number of European after the Great War had been arrested in half countries and particularly in the United that time and changed into an upward move- Kingdom, France and Czechoslovakia; the ment. In a world struggling under a large rise was due to the larger requirements of volume of indebtedness some improvement in raw materials for the expanding industrial prices is no doubt desirable, but if the rise be production. The United States have intoo violent it may lead to a distortion of pro- creased not only imports of raw materials duction and contain the germ of later diffi- but also of semi-manufactured products culties. It is natural that some concern (wood-pulp, oils, fats, etc.), foodstuffs and should be felt about the strength of recent finished articles (newsprint, textiles, furs, price developments and that already atten- diamonds, beverages, etc.). In 1936, for the tion should be directed to the consideration of first time in ten years, there was an import what measures may eventually have to be surplus during the first half of the year. Extaken. ports however rose sharply in the autumn, especially those of finished products and no- FOREIGN TRADE tably those of machinery and other iron and As compared with the level in 1929, the steel products, refined mineral oils, aircraft physical volume of international trade had and textile manufactures. Over the whole fallen by 25 percent in 1932. Since then there year the export surplus amounted to $34,000,has been a gradual recovery, but the volume 000 (the lowest since 1895) as compared with of world trade in 1936 was still 14 percent be- $235,000,000 in 1935. low what it was in 1929. A marked improve- The expansion of trade of the Belgianment occurred in the closing months of 1936 Luxemburg customs union is remarkable, exand was continued in 1937. If the countries ports having risen by 25 percent on the year; are arranged according to the percentage im- to a large extent this rise is due to the inprovement during 1936 in imports and ex- creased demand for iron and steel goods. ports as returned in their national currencies, Germany increased her export surplus the order shown in the next table is obtained. from RM 111,000,000 in 1935 to RM 550,- A substantial improvement occurred in the 000,000 in 1936. This surplus was due encountries of the Danubian region (Rumania, entirely to the balance with Europe, that with Bulgaria, Hungary) which benefited from a overseas countries being as usual in deficit. good harvest in a year when prices of cereals The increase in the export surplus did not rewere rising. Among overseas countries the sult in any improvement in the immediate highest percentage increases in exports are foreign exchange position of the country, found in Indo-China, Manchukuo, the Dutch partly because larger amounts were ear- East Indies, China, Canada, New Zealand, marked for current financial charges; an Brazil, Chile and British India. The Dutch amount of about RM 100,000,000 has been ab- East Indies remained on gold at the old par sorbed by the reduction of debts on clearing rate up to September 1936, but nevertheless accounts which at the beginning of the year exports increased by nearly 20 percent, the totalled some RM 500,000,000. The New Plan Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1937 FEDERAL RESERVE BULLETIN 551 CHANGES FROM 1935 TO 1936 IN THE FOREIGN TRADE OF DIFFERENT COUNTRIES * [In millions of national currencies] Imports Exports Country Country Percent Percent 1935 1936 changes 1935 1936 changes U. S. S. R 1,057 1,353 +28.0 Philippines 270 +45. 2 Estonia 69 87 +26. 3 Haiti 49 +42. 0 Belgium-Luxemburg. _. 17,112 21,098 +23.3 Latvia 138 +39. 4 Iran 718 878 +22.3 Danzig 325 +38.2 New Zealand 36 44 +21.5 Manchukuo 474 +33. 1 Lithuania 129 156 +21.4 Indo-China 1,682 +29. 6 France 20, 974 25, 387 +21.1 Rumania 19, 692 +17. 5 Latvia 101 122 +20.8 Morocco 782 +25.9 Finland 5, 344 6, 343 +18.7 Lithuania 191 +25. 1 U. S. A 2,047 2, 420 +18.2 Belgium-Luxemburg _.. 15, 19, 724 +24.9 Chile 295 347 + 17.7 Turkey 118 +22.9 Czechoslovakia 6,716 7,888 + 17.5 China 706 +22.7 Poland 861 1,003 +16.5 Canada 1,028 +22. 6 Canada 550 635 +15.4 New Zealand 57 +21.9 Union of South Africa.. 73 84 +14.9 Bulgaria 3,910 +20.2 Philippines 169 192 + 13.6 Brazil 4, 896 +19. 3 Australia 76 86 +12.8 Dutch East Indies 533 +19. 2 Manchukuo 572 644 +12.6 Chile 549 +18.2 United Kingdom 701 789 +12.6 Sweden 1,515 +16.8 Denmark 1, 276 1,431 +12.1 Finland 7,215 +15. 6 Norway 816 912 +11.8 India 1, 805 +14.8 Colombia 107 119 +11.4 Norway 675 +12.9 Japan 2,427 2,702 +11.3 Australia 127 +12.4 N A H I Y I B U S P B R G M r n w e r r l i u u e u r r e d g s a i e r u t g m n e x t h u o e z e h i g o d g i r i c s - a e c l u s e i F h C a e a o r n l n a r r l a h i y y e a M a v i e n n i a a d a S l s a ta y t a e 1 1 0 0 3 2 3 1 , , , , , , 4 8 9 4 8 4 4 1 8 6 6 8 3 3 9 7 7 4 0 0 6 8 4 8 0 5 7 6 9 0 2 6 6 4 0 1 6 0 3 6 1 1 4 3 3 1 1 1 1 , , , , , , , 4 9 5 2 4 2 5 9 0 8 0 6 3 6 3 7 0 3 0 1 6 8 5 0 7 1 3 9 9 7 5 1 9 7 7 2 4 8 9 9 + + + + + + + + + + + + + + + 1 1 1 1 1 1 0 0 1 0 1 1 7 9 7 6 6 8 8 5 8 . . . . . . . . . . . . . . . 7 0 2 7 7 9 6 9 7 3 3 3 6 6 2 P Y P N P D H I U S B C C G r e o o w z r u o i e n e u e s i r r l e g l t n i r i n t u h a t o h o c t m i o m u g n z s m n h e s F g h d e a a o r a l b r a r r o l n a s r y l e a M l i k y v f l a a e n o i n S a a v d d S o l s a a t u k a y t i t a h a e Africa.. 8 4 4 1 1 1 , , , , , , 8 3 7 6 5 1 1 0 3 7 0 0 3 8 3 4 3 0 2 5 1 0 7 6 2 2 2 1 6 5 0 7 2 8 2 3 6 8 0 6 7 + + + + + + + + + + + + + + + 1 1 1 1 1 1 1 1 1 1 0 1 1 1 2 2 0 0 0 0 8 8 7 8 9 . . . . . . . . . . . . . . . 4 4 6 7 9 2 1 6 2 7 5 3 2 5 1 Bulgaria 3,009 3,181 + 5.7 U. S. A 2, 455 + 7.2 Turkey 93 + 5.6 Japan 2,631 + 6.4 Danzig 93 + 4.7 Austria 952 + 6.3 Haiti 38 40 + 3.4 Ceylon 244 + 5.3 Austria 1, 206 1,247 + 2.8 Argentina 1, 652 + 4.2 Dutch East Indies 275 282 + 2.4 Italy 5, 458 + 3.8 China 919 942 + 1.4 Estonia 83 + 3.8 Germany 4,159 4,218 + 1.1 Greece 7. 371 + 3.7 Morocco 1,139 1,151 + 0. 5 Syria 1^ 217 + 3. 5 Switzerland 1, 257 1, 263 United Kingdom 441 + 3.0 Egypt 31 31 - 2.1 Mexico 773 + 1.8 Siam 105 101 -3.7 Siam 151 + 0.9 Argentina 1,175 1,117 -5.0 Iran 1, 960 Ceylon 204 190 - 6.9 France 15, 454 - 0.3 India 1,343 1, 221 - 9.1 Algeria 2, 534 - 3.0 Portugal 2, 295 1, 967 -14.3 Egypt 33 -4.2 Syria 2, 979 2,406 -19.2 Palestine 4 -14.0 Italy 7, 790 6, 002 -23.0 Uruguay... 81 -14.9 Palestine 18 13 -23.7 U. S. S. R.. 1, 359 -15.5 Tunis 1,341 925 - 31.0 Tunis 597 -31.6 1 Partly provisional figures. instituted in September 1934 has now been in more scope to ordinary methods of commerce existence for more than 2^ years and, al-and financing. When clearings are instituted though much transit trade has been lost, Ger- payments are made to exporters in turn many has to a large extent succeeded in bal- through accounts kept in the two countries. ancing imports and exports and in reducing If arrears are accumulated an individual exaccumulated trade debts. In spite of all diffi-porter must wait until his turn comes for culties, Germany still remains the third most payment and, what is more important, he important trading country in the world. may not be able to calculate the exact dura- Exchange restrictions and clearing ar- tion of the delay. In such circumstances litrangements are still obstructing world trade, tle or no use can be made of the normal facilthough in recent years some technical im- ities provided by the banking systems and exprovements have been effected which give change markets and the working capital of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN JUNE 1937 the exporter may be tied up in involuntary stroy direct relations between the buyer and trade credits; prices are influenced by the un- the seller, interposing administrative bodies certainty inherent in the transactions and through which payments are obtained. As a business is frightened off to the detriment of result, the traders lose touch with their marthe general exchange of goods. kets and are inclined to give less attention to In November 1934 a new type of payments the credit standing of their debtors, relying agreement was concluded between Germany upon the administrative arrangements which and Great Britain which eliminated some of involve more or less extended government acthe worst disadvantages of the ordinary tion. The great advantage of the "payments clearing arrangement. The conclusion of the agreements" is that direct contact is mainnew agreement was made possible by the Ger- tained between buyer and seller and particman system of foreign trade control, ac- ularly that the seller must look to the buyer cording to which every German importer for payment. These agreements thus repremust obtain a permit for payment in order sent a step forward but their working preto be able to obtain foreign exchange. The supposes the institution of a control on for- German authorities are in a position to main- eign trade such as is in force in Germany tain the volume of imports within such lim- with all the complications which such control its as they wish to impose, not only in rela- involves. Many proposals have been made in tion to the outside world as a whole but also recent years to perfect the system of clearin relation to each individual country. In the ings, for instance by the offsetting of balagreement of 1934, referred to above, it was ances between a number of countries and the laid down that Germany's monthly imports arrangement of credits to pay off accumufrom the United Kingdom should amount to lated clearing balances. The more closely 55 percent of the German exports to the these proposals are studied the clearer it be- United Kingdom two months previously; comes that the advantages of the internaapart from an amount which at the beginning tional division of labour and the normal exwas earmarked to clear off existing commer- change of goods between nations are not comcial debts, the remaining 45 percent is partly patible with a system which forces trade into used for interest and certain other charges defined channels and which, especially for and partly left at the free disposal of Ger- transactions of limited amounts, becomes unmany. In a later agreement with the Bel- duly cumbersome and costly. Clearings may gian-Luxemburg customs union the contin- have had their uses in preserving some trade gents were calculated not on the basis of the in existence when exchange restrictions were foreign trade statistics but on the declaration carried to extremes, or in ensuring the reimof foreign exchange made by the German ex- bursement of accumulated commercial debts porters, and in other agreements the basis or at least part-payment in respect of other adopted was the amount of actual deliveries debt charges. And the authorisation of soof foreign exchange to the Reichsbank. called private clearings or compensations, constituting a derogation from the clearing Similar payments agreements have been principle, may sometimes have introduced an concluded with some five countries in all and element of flexibility into an otherwise rigid experience of the working has on the whole system. But the objective of world trade must been satisfactory. A German importer who be the return to the ordinary methods of has obtained a proper permit of payment is commerce and payments, under which all assured that foreign exchange will be availthose facilities which have been developed able when the date of payment arrives and for the benefit of commercial intercourse bethis enables the parties to the transaction to tween nations can once more be fully and use the ordinary facilities of the banking sysprofitably utilized. tem. A foreign firm which sells to Germany must of course carry the ordinary trading risk as far as the standing of the German A YEAR OF MOUNTING GOLD SUPPLIES purchaser is concerned, but he will not have World gold production again reached a new to fear a delay in payment resulting from high figure in 1936, registering an increase the difficulty of obtaining foreign exchange over 1935 of 4,300,000 ounces, which is the against reichsmarks. largest absolute annual increase ever known: The ordinary clearing arrangements suffer It corresponds to a percentage increase of from the grave defect that they tend to de- 1319, which has only been surpassed at times Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

553 JCJNE 1937 FEDERAL RESERVE BULLETIN of great new discoveries of gold deposits, i. e. convert approximately into present-day dolin the 'forties and 'fifties of the last century lars it is sufficient to divide by three, and to when gold was found in California and Aus- convert into sterling, when the gold price in tralia and in the 'nineties after the discovery London stands at around 140 s. per ounce, the of the gold fields in the Transvaal. Shipments amount should be divided by roughly fifteen.) of gold from India and China, representing Nearly a third of the gold produced is obdehoarding in the East, still continued in tained from South Africa, a fifth from Rus- 1936, although at a reduced rate. For the sia, a ninth from the United States and a first time since the beginning of the depres- tenth from Canada, other countries together sion not only did hoarding in the western producing the remaining quarter. world come to an end but there was in the last quarter of the year a substantial disgorging of gold. Moreover, the consumption of gold Other countries in the arts remained at a low figure, taking not more than 5 percent of the total gold production. Consequently a very large amount—at least 5,000,000,000 gold francs or £335,000,000 at the present market price of gold in London—was available for mone- South Africa tary purposes. This abundant supply of gold «.*I9I5 1925 1926 1927 928 1932 1933 1934 1935 1936 has radically changed the situation which existed in the post-war decade and raises a The South African producers have continued number of new problems, which are engaging to exploit lower-grade ores, which at the the attention of the monetary authorities to present level of costs and the higher price an increasing extent. obtainable for the metal can be milled profitably. Though the gross tonnage of the ore THE SUPPLY OF GOLD milled has increased by 9 percent, there has The output of gold increased during 1936 been a rise of only 5 percent in the output of in all of the main producing areas, as can be gold, the figure for 1936 being still somewhat seen from the following table: lower than that of the record year 1932. The use of lower-grade ores and the extension of Other milling capacity has necessitated a larger pro- supply of labor and the number of native and South U. S. U. S. Can- duc- World Africa S. R. A.i ada ing production colored workers employed has risen from Year countries 213,000 in 1930 to 299,000 in 1935 and 310,- 000 in 1936. millions No great difficulty has as yet been experiof gold In thousands of fine ounces Swiss enced in obtaining either European or native francs labor, the technical education of the former being supplied by the opening of new schools. 1915 2 _ 9,096 1,546 4,888 918 6,146 22, 594 2,420 1923. _ 9,149 438 2,503 1,233 4,463 17, 786 1,905 Wage rates paid remained practically con- 1 1 9 9 2 2 4 5 .. 9 9 , , 5 5 9 7 8 5 5 6 9 9 4 3 2 2 , , 5 4 2 1 9 2 1 1, , 7 5 3 2 6 5 4 4 , , 5 8 9 2 2 7 1 1 9 9 , , 0 0 3 5 1 0 2 2 , ,0 0 3 4 9 1 stant in the years 1929-1935, the average 1926 _ 9,955 895 2,335 1, 754 4,430 19,369 2,075 daily wage for European workers in 1929 1927 10,122 810 2,197 1,853 4, 464 19, 446 2,083 1928 10, 354 899 2,233 1,891 4,206 19,583 2,098 being 24s. 4d., in 1935 24s. lOd. and in. 1936 1 19 9 3 2 0 9 1 10 0 , , 7 4 1 1 6 2 1 1, , 4 0 3 8 4 5 2 2 , , 2 2 8 0 6 8 2 1, , 1 9 0 2 2 8 4 4, , 1 0 8 4 4 0 2 1 0 9 , , 6 7 7 2 3 2 2 2, , 2 1 2 0 0 8 25s. Id.; if the native and colored workers 1931 10, 878 1,701 2,396 2, 694 4,702 22,371 2,397 only are considered there has even been a 1932 11,559 1,990 2,449 3,044 5, 264 24, 306 2, 604 1933 11,014 2,667 2,537 2,949 6,336 25, 503 2,732 slight tendency to fall. A certain allowance 1 1 9 9 3 3 4 5 1 10 0 , , 7 4 7 8 4 0 4 5 , , 8 2 3 6 1 3 3 2 , , 6 9 1 1 9 6 2 3 , , 2 9 8 7 3 2 6 7 , , S 48 9 4 9 2 30 7 , , 9 6 9 30 1 3 2 , , 3 96 2 0 0 must, however, be made for an increase in 1936 11,339 7,350 4,295 3,721 8, 549 35, 254 3,777 other benefits such as, for example, those in respect of paid holidays. In comparison with * Including the Philippines. 2 Record year before 1932. 1929 there has been a reduction rather than In, order to facilitate comparison with the an increase in the cost of machinery and data given in earlier reports, the monetary materials needed for production. In these value of the gold production, as well as cer- circumstances, the increase from 84s. ll^d. tain other figures in this report, is still given to more than 140s. an ounce, or by nearly 70 in gold Swiss francs of the old parity. (To percent, in the price obtainable for gold in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

554 FEDERAL RESERVE BULLETIN JUNE 1937 terms of the local currency and in sterling 1929 the output has nearly doubled and thus has naturally resulted in great profits which, risen at about the same rate as in the United however, have been subject to increased tax- States. The following table sets out for the ation. It is only because mining companies main producing districts the gold production have saved their high-grade ores and thein 1929 and 1936 and the percentage increase seams more easily exploited for the future over the period: that the increase in production has kept within such narrow limits. There is every GOLD PRODUCTION IN THE PRINCIPAL COUNTRIES possibility of a further large increase and, to judge from the reports of the leading mining [In thousands of fine ounces] companies, the foundations have already been laid for a substantial rise in the output in the Percent- 1929 1936 age next few years. increase South Africa 10, 412 11, 339 + 9 Price of Gold on the London Market U S S. R 1,085 7,350 +577 (in shillings per fine ounce) U. S. A.i 2,208 4,295 + 95 Canada 1,928 3,721 + 93 Australia . 426 1,199 +181 Mexico 652 755 + 16 A. ~ Japan 335 676 +102 —L r*" O Rh th o e d r e c si o a u ntries _ . _ __ _ __ . 2,0 5 6 6 5 2 5,1 8 1 0 7 2 + + 1 4 4 8 3 Total . . 19, 673 35, 254 + 79 - ij 1 Including the Philippines. - Of the world's total output of gold in 1929, - 72 percent was produced in countries belong- ing to the British Empire and in 1936 only 53 'i! i il 1111 111111. J i' ,, i., 11,!,. ulijJi.li. percent by these countries. The fall is due to the reduction in the share of South Africa, whose production in 1929 amounted to 53 The volume of Russian production is percent and in 1936 to 32 percent of the known only approximately, for the Soviet au- world production. thorities do not publish figures of the total In addition to the gold obtained in 1936 amount of gold produced each year but only from current production, an amount to the indicate the percentage increase from one value of 437,000,000 gold Swiss francs was year to another. For 1936 the increase is shipped from the East, this being a reducgiven as having been at the rate of 26 percent, tion in comparison with the previous year which, on the basis of previous estimates, as the following table shows: leads to a figure of 7,350,000 ounces as the amount produced during the year. It seems as if the Five-Year Plan, as far as it con- GOLD FROM THE EAST cerned the gold-mining industry, had been [In millions of gold Swiss francs] realized by the end of 1936 with a year to spare. New gold mining centres have been Hong established in recent years in Siberia and India China Kong Total Central Asia, some of them with a popula- 1931 477 54 63 594 tion of over 25,000. More than 750,000 1932 1,014 118 59 1,191 workmen and 12,000 trained Soviet engineers 1933. 653 74 100 827 1934 706 54 68 828 are reported to be employed in the gold-min- 1935 495 43 34 572 1936 371 37 29 437 ing industry. In the United States also gold production Total 3,716 380 353 4,449 has been rising rapidly, the output in 1936 being 19 percent higher than in 1935 and A substantial reduction has again occurred nearly twice as high as in 1929. In Canada in the shipments from India and shipments too production is rising as a result of newfrom China and Hong Kong have also fallen. discoveries and exploitation in districts The likelihood appears that the outward which had previously been inaccessible but movement of gold from the East will soon are now within reach by air transport. Since be arrested, if not reversed. The increase Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1937 FEDERAL RESERVE BULLETIN 555 in the price of gold in local currencies no current gold production. It is possible that longer exercises the same attraction as in in coming years the industrial demand for the years immediately following the deprecia- gold may rise somewhat but it is unlikely tions in 1931 and the improvement in eco- that the pre-war figure will be reached again nomic conditions is putting an end to so- There seems to have been a distinct change called distress sales. It is reported from in jewellery fashions for women, in that gold Java that gold coins are beginning to be ab- objects are less in favour, being replaced on sorbed again by the natives. It may also the one hand by cheap jewellery which can be mentioned .that after the four-year period be changed often and, on the other hand, during which India's annual absorption of by platinum for more expensive tastes. silver averaged merely 10,000,000 ounces, Million gold in 1936 the consumption of silver suddenly Swiss francs rose to an amount estimated at 100,000,000 To sum up, the amount of gold available ounces, an indication of a renewed demand in 1936 from new production 3,777 for precious metals in the East. increased by shipments from the East of. . 437 but reduced by the amount absorbed by Against the new gold that has become the arts and industry, namely —190 available during the year there should be set off in the first place whatever amount has thus totaled 4,024 been required for use in the arts and in industry. It has been estimated that in the These 4,024,000,000 gold Swiss francs corperiod 1920-1929 about 20 percent of the respond to about £270,000,000 or $1,300,000,annual gold production was taken for such 000. An even larger amount was actually purposes. During the depression there was available for monetary purposes in 1936, for not only a decline in the absolute amount of more than 1,000,000,000 gold Swiss francs gold used industrially and in the arts, but also were obtained from dehoarding. an increase in the amount of gold recovered by the purchase of old jewels etc. In the DEHOARDING OF GOLD United States, for which country fairly com- One of the most curious changes produced plete statistics on this subject exist, the inby the depression was the simultaneous occurdustrial absorption of gold was given at rence of large-scale dehoarding of gold in the $14,000,000 and the recovery of old gold East and extensive hoarding in the West. at $62,000,000 in 1934, the corresponding From 1931 to the end of 1936 nearly 4,500,figures for 1935 being $26,000,000 and $32,- 000,000 gold Swiss francs (equal to 42,000,- 000,000 respectively. With increasing pros- 000 ounces) were shipped from India, China perity the industrial use of gold may have and Hong Kong, corresponding to 2^ years' risen further and in 1936 it may not have pre-depression gold production. For many been fully met by recovery of old gold, but reasons it has been somewhat difficult to obthe net amount needed is probably still intain exact figures of the amount of gold significant. hoarded in the West since 1931, though suffi- In Great Britain the industrial use of cient indications have been available to give gold is estimated at about £2,000,000 per a general idea of the movement in and out of annum and in recent years this amount has hoards in these years. For some countries been covered by old gold obtained from the more complete data have recently been propublic. In France the industrial use of gold cured: for France certain particulars are is somewhat greater, being estimated for given in the following table which shows for the last two years at 25,000 kilogrammes, or the period June 1931 to September 1936 the about 85,000,000 gold Swiss francs, per amounts of gold bought from, and sold to, the annum (over and above the needs met by Bank of France by the French public, and the recovery of old gold). In Germany, also the amounts imported and exported for consumption of new gold has been estimated account of the public. The figures given in for 1936 at about RM 30,000,000. For other the table have been calculated by deducting countries only incomplete information is from the gold movements at the Bank of available; it is safe to assume however that France or through the customs all transfers the net world consumption of gold by in- of the metal known to have had a foreign dustry does not exceed 190,000,000 gold Swiss origin or destination (foreign markets, cenfrancs, representing about 5 percent of the tral banks or exchange funds). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

556 FEDERAL RESERVE BULLETIN JUNE 1937 MOVEMENTS OF GOLD TO OR FROM THE PUBLIC IN March 1937 private gold sales to the stabilisa- FRANCE tion fund and declarations by traders and industrialists are valued at nearly 40 percent [In millions of French francs—1928 parity] of the estimated gold held privately within France. 1931 1936 (June- 1932 1933 1934 1935 (Jan.- Total During the last period of 1936 an amount Dec.) Sept.) of about 150,000,000 gold Swiss francs was obtained from hoards within Switzerland and At the Bank of France: an amount equivalent to about 100,000,000 Gold bought from the gold Swiss francs within the Netherlands. Bank 858 618 3,477 631 2,243 395 8,222 Less precise information is available for other Gold sold to the Bank... 80 443 788 1,035 455 597 3,398 countries; it is known, however that dehoard- +778 +175+2, 689 -404 +1, 788 -202 +4, 824 ing of gold occurred in the London market on a fairly extensive scale during the last quarter Through the customs: of 1936. In its comments on the balance of Gold imported 1,274 2, 836 2,412 1,805 1, 835 2, 379 12, 541 Gold exported 382 607 2, 546 2, 638 2, 039 1,714 9,926 payments of the United Kingdom for the year 1936, the Board of Trade Journal explains +892+2, 229 -134 -833 -204 +665+2, 615 that "it seems likely from the recorded ex- Balance +1, 670+2, 404+2, 555-1,237 +1, 584 +463+7, 439 ports that some part of the gold sent to this country at an earlier date to be held on + signifies increase in the gold holdings of the public; — signifies decrease in the gold holdings of the public. foreign account was repatriated after the devaluation of the -gold-bloc currencies at the Internal hoarding of gold in France be- end of September". It seems safe to assume gan in the summer of 1931 and continued that during 1936 in all an amount of at least until the devaluation in 1936, except for a 1,000,000,000 gold Swiss francs was obtained break in 1934 when not only did the gold in Europe from hoards previously accumuholdings of the Bank of France rise by 4,532,-lated. 000,000 francs but also, as can be seen from The movement out of hoards has continued the table, the amount of gold hoarded in- during the opening months of 1937 reflecting, ternally was reduced by more than a billion. it may be stated, a change in the attitude of For the period June 1931 to September 1936 the public towards the holding of assets in the net amount of gold acquired by the public the form of gold. More attention is being from the Bank of France or from imports paid to the fact that gold not only earns no amounted to 7,439,000,000 francs (of the oldinterest but that its hoarding involves the parity). This amount, however, includes the payment of charges for the hire of safe degold absorbed by the arts and industry which, posits etc.; another consideration is the infor the period under review, is estimated at creased possibilities of making profits on about 2,000,000,000 francs over and above investments at a time of rising quotations on the recoveries of old gold. There thus re- the world's stock exchanges. Moreover, gold mains an amount of about 5,400,000,000 is no longer regarded as providing the same French francs which may be taken as a maxi- measure of safety as it did in the past. Under mum figure of the gold hoarded in France up the legislation passed in the United States in to September 30, 1936. It should be added 1934, gold held in the country had to be surthat only negligible amounts of the gold coins rendered to the government and was paid for issued before the war are still held by the only at the old par value. In France after public, and that smuggling of gold across the the devaluation in 1936 gold held by all perfrontiers can hardly have been of any sub- sons or corporate bodies domiciled in the stantial volume. country had to be surrendered at the previous During the first nine months of 1936 thepar rate of the franc, while holders of foreign amount of gold held by the French public con- exchange, for instance, were subject to no tinued to increase, but after the devaluation such obligation. Though the full market at the end of September the movement was price was later paid to the French holders of reversed. It will^be recalled that the new gold, the memory of the original provision monetary law made surrender of gold obliga- remains, and it is not surprising that those tory, with certain exceptions, for all persons who seek protection against monetary risks and corporate bodies domiciled in France. at present prefer the holding of notes and From the beginning of October 1936 up to money on deposit in foreign banks to the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

557 JUNE 1937 FEDERAL RESERVE BULLETIN hoarding of gold. In this connection, it may after revaluation to 67,275,000,000 francs, be mentioned that during 1936 the note cir- giving a book profit of 17,057,000,000 francs. culation of the Bank of England rose by Of this profit the Bank o^ France under variabout £50,000,000, of which it is estimated ous arrangements retained in its gold reserve that perhaps £25,000,000 were hoarded about 7,000,000,000 francs; the remaining abroad and, in addition, there has been some 10,000,000,000 francs in gold were allocated hoarding of United States dollar notes in to the exchange stabilisation fund and, sta- Europe. tistically, that amount w7as thus transferred from the reported gold holdings of the bank MOVEMENTS OF GOLD TO CENTRAL BANKS AND to the unreported holdings of the government OTHER MONETARY AUTHORITIES fund. In October 7,000,000,000 francs were The total amount of gold available for sold back from the fund to the bank, but at monetary purposes in the year 1936 (as a the end of November the bank's holding was result of current production, shipments from reduced by 4,000,000,000 francs—the balance the East and deliveries from hoards in the taken out of the bank being thus 7,000,000,- West, allowance being made for the require- 000 francs, corresponding to somewhat more ments of the arts and industry) attained a than 1,000,000,000 gold Swiss francs. It is figure of 5,000,000,000 gold Swiss francs. known that during the last two months of Where has this gold gone? 1936 the French exchange fund utilised part About 3,300,000,000 gold Swiss francs are of its holdings for the repayment of the govaccounted for by a net increase in the re- ernment credit taken up in London in Februported gold holdings of banks of issue and ary 1936 and to support the franc, but at the governments, which rose in 1936 from about end of the year it still held part of the gold 69,000,000,000 to 72,300,000,000 gold Swiss allocated to it. francs. This leaves at least 1,700,000,000 (ii) When an embargo was placed on the gold Swiss francs, which, it may be con- export of gold from the Netherlands at the cluded, have been incorporated in exchange end of September 1936, no revaluation was funds and other unreported holdings of mone- made of the gold holdings of the Nedertary authorities. In the absence of published landsche Bank. Gold to the value of 100,information regarding these funds, it is im- 000,000 florins (corresponding to about 210,possible to indicate in detail the destination 000,000 gold Swiss francs) however was obof the gold. Relatively little guidance can tained from the bank against government be obtained from statistics of the gold move- securities and put at the disposal of the ments between different countries. Since the newly-formed exchange equalisation fund. currency changes at the end of September In the last quarter of the year the fund ac- 1936, the foreign trade returns of France and quired by purchases in various markets an the Netherlands have given no information additional amount of gold and the Nederabout exports and imports of gold; and even landsche Bank also increased its gold holdwhen trade figures are available the follow- ings; the fund retained to the end of the ing observation of the Board of Trade in its year the 100,000,000 florins transferred to it comments on the balance of payments of the at the time when it was constituted. United Kingdom for 1936 must be borne in By the end of 1936 the French and Dutch mind: "with the practice so frequently exchange funds thus held gold which had been adopted at the present time of purchasing transferred to them from the holdings of the gold and earmarking it in the country of sale, Bank of France and the Nederlandsche Bank instead of shipping it immediately to the respectively, and the amount of such gold in country to which it belongs, the physical their possession explains the destination of movements of gold do not necessarily coincide one part of the 1,700,000,000 gold Swiss in point of time with the operations giving francs which, during 1936, went into exrise to them". There are, however, certain change funds and other unreported holdings allocations of gold to government exchange of monetary authorities. Apart from these funds which have been made known and special allocations, however, the aggregate which throw light on the absorption of gold holdings of unreported gold in the hands of during the year. the various exchange funds also increased (i) On October 2, 1936 the 'gold holdings in 1936. of the Bank of France amounted to 50,218,- The reported reserves of banks of issue 000,000 French francs of the old parity, and and governments still constitute the over- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

558 FEDERAL RESERVE BULLETIN JUNE 1937 whelmingly greater part of the monetary (group 1) ; those where there was practically gold stocks of the world. To indicate the no change in the magnitude of the reserves changes that have iaken place in monetary (group 2) ; and those in which an increase reserves generally, the table on this page sets occurred (group 3). out the reported gold stocks of each country As regards the gold-bloc countries, it is of at the end of 1934,1935 and 1936 respectively, interest to distinguish between the period the countries being divided into three groups: before the monetary changes took place, comthose in which the reserves fell during 1936 prising the first nine months of 1936, and the second period extending over the last three months of the year. REPORTED GOLD RESERVES OF BANKS OF ISSUE AND GOVERNMENTS [In millions of gold Swiss francs] GOLD RESERVES [End of month figures. In millions] Loss Loss (-) (-) or France Netherlands Switzerland E o n f d E o n f d or E o n f d g(a+in) 1934 1935 g(a+i)n 1936 dur- In- In- Ining crease crease crease dur- 1936 Gold Gold Gold <+), 1 i 9 n 3 g 5 h i o n l g d s - cr d e e a - se h i o n l g d s - cr d e e a - se h i o ng ld s - cr d e e a - se Group 1: France 16,675 13, 455-3,220 9,168 4, 287 Spain 2,268 2, 255 13 1 1, 600 655 I P G C t o a z e l e l r a y c m n h d a o n s y lovakia 1,5 3 2 1 8 4 9 8 5 3 3 8 8 3 2 1 4 2 5 9 4 6 8 2 759 6 2 2 1 7 3 4 2 9 8 1 8 1 3 6 5 8 0 5 1 8 1936 0 f f . i r 0 n a 5 e n 8 c 9 g s 5 o o l g d f r. 0 f f l i . o n 6 r e 0 i 4 n g 8 s o g o ld r f . 0 f fi . r 2 n a 9 e n 0 c g 3 s o g o ld r f . South Africa 562 649 621 28 U A E G C c u a r re u u n s e a g t a c r d u d a e o a a li r y a _. 2 6 1 6 4 2 1 1 9 9 6 2 3 2 5 1 2 0 7 1 1 6 4 8 3 3- 2 9 1 0 3 3 1 8 2 5 7 0 7 1 8 9 5 1 2 1 8 3 2 6 7 J A F M M a e p n a a b r y r u i r c l a u h r a y ry.._ 6 6 6 6 5 0 5 3 5 7 , , , , , 2 0 7 9 7 2 2 8 1 6 3 2 9 7 8 + 3 1 3 1 , , , , 0 1 5 8 7 4 4 6 7 4 6 1 9 2 6 6 6 7 7 6 7 1 1 8 4 0 3 0 0 0 . . . . . 0 3 2 6 7 + + + - - 3 2 3 6 9 . 7 3 6 9 . . . . 6 3 3 8 1 1 1 1 1 , , , , , 5 4 3 4 5 1 8 4 8 0 5 6 3 8 8 . . . . . 4 5 8 2 5 | + + + - 3 5 6 7 2 6 0 3 . . . . . 0 8 9 3 3 Total 22, 983 18, 913-4,070 13, 553-5, 360 J J u u n ly e 5 5 4 4 , , 9 3 4 4 2 1 + 2, 6 6 0 8 1 1 6 5 5 9 1 4 . . 2 2 + - 5 4 7 6 . . 0 0 1 1 , , 4 4 4 0 0 7. . 0 6 + - 3 7 3 6 . . 6 5 Gro A up l b 2 a : nia 8 8 A Se u p g t u e s m t ber.. 5 5 0 4 , , 5 1 1 1 1 1 4, 4 4 3 0 1 0 6 6 6 8 9 2. . 2 8 + - 3 1 1 2 . . 0 4 1 1 , , 5 4 5 96 3 . . 7 7 + + 5 5 7 6 . . 0 1 Algeria 43 43 43 Movement to Argentina 1, 235 1, 235 1, 235 end Septem- A Be u l s g t i r a ia n Congo _. 13 9 9 14 9 0 + 14 9 0 ber -16,153 + 26. +164. 9 Chile 89 90 + 90 Denmark 185 164 164 Egypt 165 165 165 francs of florins of francs of Estonia. _ 34 40 + 40 0.0441 gr. 0.6048 gr. 0.215 gr. India.. 840 840 840 fine gold fine gold fine gold Latvia 46 46 46 New Zealand 76 71 71 October 64,359. 569.9 2, 408. 4 +310. 4 Total 2,868 2,851 2,851 November,. 64, 359. 569. 9 2, 581. 0 +172. 6 December.. 60, 359. 4, 000 719. +149. 2, 709. 0 +128. 0 Group 3: P B o u r l t g u a g ri a a l 58 2 6 08 0 + 209 M l o a v st e m qu e a n r t t i e n r.. 4,000 1 +149. 1+611.0 Morocco 22 22 Danzig 24 12 Hungary 71 71 0 *In addition the Exchange Funds acquired gold. Peru 57 58 + 1 64 + 6 Colombia 59 48 - 58 10 There is this striking difference between Turkey 67 72 + 83 11 Rumania 319 335 + 16 350 15 the gold movements of the three countries, Y D u u g tc o h s la E v a i s a t Indies. 2 1 3 6 6 3 1 13 6 1 7 69 1 1 8 4 5 8 + + 1 1 7 8 that during the first nine months of the year Lithuania 27 19 8 38 + 19 the Nederlandsche Bank and the Swiss Na- Norway 187 257 70 299 42 Finland 42 62 20 106+ 44 tional Bank both added to their gold holdings, J B a e p l a g n ium 1 1 , , 8 2 3 0 7 5 1 1 , , 3 8 0 5 2 7 2 9 0 7 1 1 , , 4 9 1 3 6 4+ + 1 7 1 7 4 while the Bank of France sustained on bal- Netherlands 1, 754 1,340 414 1,499 159 ance a very heavy loss, which was only for a Sweden 488 566 + 78 73: + 169 Switzerland 1,910 521 2, 006+ 617 relatively small part due to a deficit on the U U . n i S t . e d S . K R ingdom... 4 2 , , 2 8 7 5 7 0 569 + 2 1 9 96 21 7 3 ,9 , 1 5 1 35+ +2 , 9 8 6 6 6 5 current account of the balance of payments. U. S. A 25, 216 30, 992 +5, 77634, 439+3, 447 During 1936 the gold holdings of the Bank Total 41,077 46, 583 +5, 50655,194+8, 611 of France dropped every month except in Grand total 2 67,300 69, 000+1, 70072, 300+3, 300 February, when the proceeds of the £40,- 000,000 loan taken up in London by the 1 Estimated. French Treasury became available, and in 2 Partly estimated and including also other countries. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

559 JUNE 1937 FEDERAL RESERVE BULLETIN July, when there was some repatriation of at the beginning of 1937 the return move- French funds. This period however was of ment became very strong. The amount of short duration; in August the current again gold acquired by the exchange fund has not turned and the loss of gold during the first been made known but the Nederlandsche three and a half weeks of September 1936 Bank increased its gold holdings from 669,was the heaviest ever experienced by the 800,000 guilders on September 28, 1936, to bank. 919,500,000 guilders at the end of March The immediate result of the devaluation 1937. of the French franc in the autumn of 1936 The large amounts of gold which were was the liquidation of the large volume of taken by Switzerland and the Netherlands forward engagements, and this in itself did not cause any strain on the outside gold caused a return movement of funds to the markets for, quite apart from any measures French market. After a short period in the taken by the various exchange funds, an latter half of October of no distinct move- abundant supply of gold was available not ment in either direction, French funds again only from the mounting gold production but began to be transferred abroad and this move- also from the outflow from France and the ment continued into the opening months of gold coming out of hoards. Even the last 1937; in spite of the raising of a credit of quarter of 1936 saw a substantial increase £40,000,000 by the French Railways the in the gold reserves of Great Britain and the movement became intense in February and United States. in the first days of March, and the position In order to get a comprehensive idea of the was only relieved after various measures had amount of gold which had to be effectively been initiated in the second week of that disposed of in 1936, account must be taken month. These measures included the pay- not only of the amount of at least 5,000,000,ment of the full market price for gold and 000 gold Swiss francs available from current the successful issue of two "tranches" of the production, shipments from the East and de- National Security Loan made repayable in hoarding in the West, but also of the amount terms of certain foreign currencies. of gold which came out of the reserves of the Bank of France and of other central banks. In Switzerland the sale of gold from domes- In the first nine months of 1936 the Bank of tic hoards and the return flow of funds from France lost 16,153,000,000 francs of the 1928 abroad set in immediately upon the devaluaparity and in the last three months 4,000,tion of the franc. The Swiss National Bank 000,000 francs of 0.0441 grammes fine gold and the exchange fund acquired gold to an were transferred to the exchange fund on the amount exceeding 500,000,000 gold Swiss occasion of the repayment of the London francs in the course of a few months. As the credit, altogether making 3,888,000,000 gold quotations of shares and bonds on the Swiss Swiss francs. With the gold from other censtock exchanges rose very rapidly immeditral banks, something like 10,000,000,000 gold ately after the devaluation, there was very Swiss francs was disposed of altogether. little inducement for foreign capital to invest in Swiss securities and, in fact, few such in- It should be mentioned that the Soviet vestments were made. By the end of the monetary authorities retained practically the year the return flow of Swiss funds was com- whole of the gold produced in 1936 within the ing to a standstill and at the beginning of territory of the U. S. S. R. although some im- 1937 there were even some signs of renewed portant sales abroad were made in the spring export of Swiss capital for the purchase of of 1937. Of the gold which moved internasecurities in the United States and elsewhere. tionally in 1936, the largest acquisitions were In the Netherlands, after the liquidation made by the Bank of England and the United of some forward engagements in the first States Treasury Department; next in order half of October 1936, the movement on the of magnitude come the purchases of the exchange market remained for a while with- monetary authorities in Switzerland and the out any definite tendency; but soon a demand Netherlands. The disposal of the gold, as far by foreigners for guilders for the purchase as information is available, is shown in the of Dutch securities set in. Gradually the diagram on the next page. Dutch themselves began to move to the home The increase in the gold reserves of the market funds that had been previously ex- Bank of England, valued at £113,600,000 at ported, and towards the end of the year and the old parity or about £188,000,000 at the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

560 FEDERAL RESERVE BULLETIN JUNE 1937 maturity of overseas loans. Such credit bal- Main Gold Movements in 1936 ances as may have resulted from these transactions and from profits which have accrued (In millions of gold Swiss francs) during the year from sales and purchases Origins of Supply Destination of foreign securities account, however, for only a part of the net gold imports; these imports have in the main been the result of large-scale capital movements reflecting the Bankof England increased holding of foreign capital, princi- New Gold 2.865 pally French, in London. The gold reserves of the United States inreased in 1936 by $1,133,000,000; $102,000,- 000 were obtained from domestic sources and $1,031,000,000 on balance from abroad. Net imports were in fact $1,117,000,000 but $86,- Dehoardinq USA.Treasury 000,000 were earmarked for foreign account. 1.000 For the third consecutive year the net gold / estimate > imports exceeded $1,000,000,000 and reflected the general movement of capital funds from foreign centres to the United States. On cur- From Russian State Bk. rent account of the balance of payments a Bank of France 966 passive balance appeared for the first time 3.888 Swis ( s es t N im a at t e .B ) ank since before the war. Total trade and service 617 transactions, including interest and dividend items, resulted in a debit balance of $132,- OtherCentral Banks 000,000 in 1936 instead of a credit balance From & Exchange Funds of $208,000,000 in the previous year. The otherCentral Banks 2.090 change-over was brought about, on the one 1,073 hand, by a reduction in the export surplus of merchandise from $236,000,000 in 1935 to $34,000,000 in 1936 and, on the other hand, by a net increase in freight and shipping pay- "New Gold" includes production plus shipments from the ments, tourist expenditure and immigrants' East less industrial requirements. "Dehoarding" includes only dehoarding in the West. remittances of $128,000,000. Net receipts from dividends and investments remained unmarket prices prevailing on the dates when changed at the figure of $375,000,000 to the the gold was acquired by the bank, has ab-credit of the United States. As a result of sorbed the greater part of the country's net continued foreign purchases of American import of gold, which valued in sterling at corporate shares and of the higher dividend current prices amounted to £228,000,000. rates declared in the course of the year, in- This large import of gold was not due to anyterest and dividend payments to foreign surplus on the current account of the balance holders of American securities rose by $54,of payments for, according to the estimates 000,000, but this increase was offset by an of the Board of Trade there was a debit bal- increase in the income from American direct ance on this account of £19,000,000. Al- investments abroad. though in comparison with 1935 there were Net recorded movements of capital to the substantial increases in the sums received in United States amounted to $1,141,000,000 as respect of shipping and overseas investments, compared with $1,536,000,000 in 1935; and it the import surplus of commodities rose by is this continued flow of capital which ac- £73,000,000 (mainly as a result of larger counts for the large movement of gold to the imports of raw materials) and net exports of silver fell by £13,000,000. It may be added United States. It is indeed an interesting that subscriptions to new overseas issues on phenomenon that the two countries which the London market amounted to only £32,-in 1936 were the largest recipients of gold 000,000 in 1936 and were probably covered both reported an adverse balance on the curmore than twice over by the amount received rent account of their balances of payments from sinking funds and from repayments at in that year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1937 FEDERAL RESERVE BULLETIN 561 Reference has already been made to the exported from Spain in connection with the increase in the reserves of the Swiss National civil war. Bank and of the Nederlandsche Bank. In those countries where exchange control Among other central banks which have in- has been imposed, outward movements of creased their gold holdings during 1936, the capital are prohibited except under special largest additions have been made by the authorisation, and a free inflow of capital is, Sveriges Riksbank by about 169,000,000 gold as a rule, excluded in the circumstances. For Swiss francs, the result partly of purchases these countries, therefore, gold movements of internal production and partly of imports in the main still reflect changes on the current from abroad. The Bank of Japan increased account of the balances of payments, but the its gold holdings by 114,000,000 gold Swiss amounts involved are small in comparison francs as a result of purchases of domestically with the gold movements which result from produced gold and the National Bank of Bel- international transfers of capital. It should gium by 77,000,000 gold Swiss francs. Forty- be noted that the funds thus moving have four million gold Swiss francs were added to only to a very small extent been obtained by the reserves of the Bank of Finland; in 1936, credit operations; they have consisted chiefly as in the previous year, the bank converted of capital effectively owned by the individuals part of the amount accruing from a surplus or bodies for whose account the transfer was on the current account of its balance of pay- made. ments into gold in its monetary reserves. The Bank of Norway was also able to increase ABUNDANT GOLD SUPPLY IN THE MONETARY its gold holdings—thanks in part to an im- SYSTEM provement in the country's balance of payments. And among the Baltic countries the The large movements of gold in recent years have given rise to a series of problems gold holdings of the Lietuvos Bankas were which have engaged the attention of the doubled during the year. authorities in the various monetary centres. The gold" holdings of the Banca d'ltalia In addition to the task of preventing undue were revalued at the time of the devaluation fluctuations in exchange rates, account has in the autumn of 1936 and, the book profits to be taken of the influence that an influx or having been allocated to the State, amounted efflux of gold may have on the internal curat the end of the year to 3,959,000,000 lire as rency and credit conditions in the countries compared with 3,027,000,000 lire at the end affected. In the influx of gold into a market of 1935. In terms of gold, however, there is the result of a movement of funds liable to was a diminution over the year amounting be withdrawn again at any time, it may be to about 188,000,000 gold Swiss francs. The dangerous for the central bank in the market gold holdings of the Reichsbank fell from receiving the funds to acquire the gold with- RM 82,500,000 at the end of 1935 to RM 66,out any offsetting operation; for such acquisi- 500,000 at the end of 1936, the decrease being tions would lead to an increase in the credit accounted for mainly by the internal requirebase without any guarantee that the increase ments of gold for the arts and industry. The could be permanently maintained. imports and exports of gold during 1936, as Considerations of this kind have largely returned by the German customs statistics, determined the working of the British Exapproximately balanced; at the beginning change Equalisation Account, and it is interof 1937 there was, however, an increase in esting to note that the underlying idea of the imports of gold resulting from the conthe policy of offsetting temporary movements version into gold of the proceeds of foreign of funds from one market to another was exchange and certain foreign securities sursuggested by the Macmillan Committee in rendered under the new exchange decree. paragraph 355 (pp. 151 and 152) of the re- In the course of the year the gold holdings port published in the summer of 1931. Since of the National Bank of Czechoslovakia were that time the further question has arisen reduced by the equivalent of 65,000,000 gold whether such acquisitions of gold as are not Swiss francs and those of the Bank Polski the counterpart to more or less temporary by 30,000,000 gold Swiss francs. In Czecho- movements of funds should be allowed to slovakia no important gold movements oc- raise the reserve balances of the commercial curred after the devaluation in the autumn. banks to a level which, especially during an Finally, it should be mentioned that gold was upward trend in the business cycle, might be Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

562 FEDERAL RESERVE BULLETIN JUNE 1937 considered undesirable or whether measures in this case the object was to take over gold should be taken to neutralise as far as possible from the Exchange Equalisation Account (to the effects of such acquisitions. render the Account more liquid) without In Great Britain the establishment of the causing a corresponding alteration in the Exchange Equalisation Account in the spring credit base of the market. The gold was acof 1932 provided for the funds (mainly in quired by the Bank of England mainly against the form of Treasury bills) required for in- securities in a way that did not affect the tervention on the exchange market and, at balances of the joint stock banks. Simultathe same time, for the regulation of the in- neously the fiduciary note issue (i. e. the ternal credit position. When the Account amount of notes which may be issued by the intervenes in the case of an inflow of funds Bank of England over and above its gold the sale of the Treasury bills acts as an off- holdings) was reduced from £260,000,000 to setting operation, preventing the inflow from £200,000,000. increasing the cash balances of the joint In the United States the Exchange Stabilistock banks at the Bank of England; when sation Fund, established at the beginning of funds flow from the London market the Ex- 1934, bought gold for account of the Treaschange Equalisation Account effects an offury and paid for it with funds obtained at setting movement by acting in the opposite the Federal Reserve banks against gold cerway, namely, selling foreign exchange or tificates, but it was not part of the Fund's gold and purchasing Treasury bills. An adtask to undertake any offsetting open-market dition to the gold holdings of the Account operations. Consequently, the inflow of gold, does not, therefore, lead to an increase in which amounted to approximately $4,000,bankers' balances. To provide for more notes 000,000 from the beginning of 1934 to the in circulation or an increase in bankers' balend of 1936, had the effect of adding an ances, the Bank of England may take over equivalent amount to the reserve balances of part of the gold without a counteracting sale the member banks as well as to the deposits of securities, or purchase securities on its held with them. In this way reserve balances own initiative. were built up far in excess of the statutory The technique of offsetting has gradually requirements; at the beginning of 1936 the been adapted to allow for different kinds of excess reserves amounted to $3,000,000,000. movements of credit and currency. If the It was feared that this increase in the credit funds coming to the London market are put base would lead to a dangerous expansion in into bank deposits and thus cause an increase the supply of money in the form of bank in the total volume of these deposits, the credit and, in order to counteract such a poamount of bankers' cash (their coin, notes tential expansion, the Board of Governors of and balances at the Bank of England) must the Federal Reserve System decided to inbe allowed to increase by about a tenth of crease the reserve requirements for member the amount of the new deposits if it is desired banks. In July 1936 these requirements were to avoid a tightening of the banks' ratios increased by 50 percent and in January 1937 (traditionally kept at the rate of about a a further 50 percent increase of the original tenth of total deposits). If, on the other amount was ordered; the reserve requirehand, there is an increased demand for notes, ments of the member banks have thereby been the clearing banks will have to draw on their fixed at the highest rates allowed under the balances at the Bank of England in order to law. It was estimated in January 1937 that procure the notes to be paid out. To offset, from May 1, when the increases become in this case, the resulting reduction in the fully effective, the excess reserves of member banks' "cash/' the Bank of England must banks will have been reduced to approxtake steps to restore the balances of the banks imately $500,000,000 which, in the opinion of up to the full amount of the increase in the the Board of Governors, is considered to be note circulation. In the course of 1936 the "an amount ample to finance further recovery note circulation increased by roughly £50,and to maintain easy money conditions." 000,000 and the Bank of England provided for the increase by an addition to its gold Another measure to counteract the effects holdings. There was, however, a further of additions to the gold holdings was adopted increase of £65,000,000 in the gold holdings in December 1936. On the 21st of that month of the Bank of England in December 1936; the Secretary of the Treasury announced that Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

563 JUNE 1937 FEDERAL RESERVE BULLETIN the Treasury would take appropriate action ply of gold would normally exert. Considerwith respect to net acquisitions or releases ing the variety of circumstances that may of gold "by the sale of additional public debt occur, only a few typical and simplified cases obligations, the proceeds of which will be used can be considered to emphasize some of the for the purchase of gold, and by the purchase more important points. or redemption of outstanding obligations in Suppose that gold is moved from one marthe case of movements in the reverse direc- ket to another, not to fill a gap in the current tion." It was explained in the Federal Re- balance of payments but as a means of effectserve Bulletin of January 1937 that, in so ing the transfer of capital funds. Against far as such action is taken, effects on reserves the gold an equivalent amount of deposits is of additions to the gold supply, either from obtained with commercial banks of the recipiimports or from new production, will be off- ent country and, if the central bank acquires set by the sale to the public of an equivalent the gold without any offsetting operation, the amount of United States Government obliga- reserve balances of the commercial banks are tions and by the setting aside of the pur- also increased by a similar amount. Now, chased gold in an "inactive account" in the if the central bank sells securities to the Treasury. An outward movement of gold amount of the gold acquired, the increase will be similarly offset by the purchase or made in the reserve balances of the commerredemption of United States obligations in cial banks will be wiped out. What happens the market, thus restoring to it the funds to the deposits with the commercial banks lost through the export of gold. To this ex- will depend upon whether these banks or the tent, therefore, the volume of member bank outside market buy the securities. It is imreserves will be neither increased nor de- portant to stress that the funds which were creased by changes in the supply of gold. transferred from abroad were of a capital By the end of April 1937, the amount of so- nature and, therefore, presumably will not called "inactive gold" held by the Treasury be spent on the purchase of commodities but, and purchased out of ordinary Treasury re- if no longer kept on deposit, will be used for sources since the measure was introduced in the acquisition of capital assets. As, how- December 1936 amounted to over $500,000,- ever, the financial market has been provided 000. with an increased amount of securities by In other countries also steps have been the action of the central bank, a balance is brought about between the demand for, and taken to offset the effects of large increases the supply of, capital assets on the market. in the gold holdings. In the Argentine the In individual cases there may be variations Central Bank continued to sell during 1936 in that funds may move into the stock market government securities out of its own holdings or be otherwise invested instead of going into to the commercial banks; with the exhaustion the market for government securities, but on of the Central Bank's own securities, the the whole it may be assumed that the inflow government created Treasury bills to absorb of funds and gold has been more or less offset the incoming gold under a plan similar to that in the way described. It is necessary, howdescribed above for the United States. In ever, that the money received in payment for New Zealand powers have been given to the the securities sold by the central bank should Reserve Bank to increase the minimum cash remain unspent, and the interest on these requirements of the commercial banks. In securities will, therefore, be a net burden several other countries similar measures are on the central bank or the government, as being discussed and proposals framed to the case may be. No essential change is proenable the monetary authorities either to duced by the substitution of an exchange tighten cash requirements or to intervene on fund for the central bank as the body perthe markets by the sale of securities. The forming the offsetting operations. It is simmeasures thus taken or envisaged in different ply necessary that a sufficient amount of govcountries indicate the growing preoccupation ernment securities should be available for with problems arising from an abundant supintervention on the market, and the establishply and massive movements of gold. A policy ment of an exchange fund may have been the of "sterilising gold" is being widely adopted method chosen (as in London) to provide and the question arises to what extent the these securities. measures involved will adequately neutralise the effects which an increased monetary sup- A more difficult problem arises when the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

564 FEDERAL RESERVE BULLETIN gold is derived from current production. The In 1936 the amount of gold that moved first result of an acquisition of such gold is internationally was exceptionally large for, of course, as in the previous case, to produce in addition to the mounting gold production, an increase in the deposits with commercial gold continued to be shipped from the East banks and an increase in the banks' reserve and was dehoarded in the West. Moreover, balances at the central bank. It is also true an amount fully as large as the year's producthat a sale of securities by the central bank tion came out of the reserves of the Bank of to the amount of the gold acquired reduces France. Obviously, some of these supplies the balances of the commercial banks with will prove to be only temporary: the shipthe central bank and in that way a multiple ments from the East were smaller than in expansion of credit within the monetary sys- previous years and may soon be reversed; tem is avoided. But what happens to the dehoarding in the West, which began after deposits which were obtained in the com- the devaluation of the gold-bloc currencies, mercial banks ? These deposits in the hands has already accounted for a fair portion of of the gold producers are not a form of capital the accumulated hoards; and the improveassets but must in the main be expended by ment in the economic and financial position them for the payment of wages, materials, of France has had a moderating effect on the taxes and dividends. The result is an addi- outflow of gold from that country. There retional demand for commodities based on an mains the current gold production. In the expansion of monetary purchasing power. year 1936 the world's output of gold was in Such an expansion may be desirable to coun- ounces nearly 80 percent above the average terbalance an increased production of goods, annual output in the period 1924-29. In this but if the expansion should be too great, the period, at the gold price in London of 84 s. question arises how the increase in the vol- lli/2 d. an ounce, the annual output had a ume of purchasing power can be offset. There value of about £80,000,000, of which about £50,000,000 were available for monetary purwould have to be, in some way, a restriction poses; and in 1936, at a gold price of about in the volume already existing corresponding 140 s. an ounce, the value of the output had to the amount obtained by the gold producers, risen to £245,000,000, the whole being availas long as they can sell their gold within the able for monetary purposes. All the indicamonetary system. A restriction of the kind tions from the producing countries point to required would be produced if the amounts a continued rise in output: in South Africa needed to acquire the gold were raised by the work of development is just beginning taxation or through loans raised from effecto make itself felt; in the U. S. S. R. gold tive savings. In the case of securities being production is still mounting and exports were sold by the central bank to neutralise the resumed in March and April 1937; in Canada, gold acquisitions, these securities must abofficial reports predict a further large insorb part of current savings in order to precrease; only in the United States would the vent not only an enlargement of the credit output seem to have reached, if not its maxibase but also an increase in the volume of mum, at least a level which is unlikely to be purchasing power directed towards the purgreatly exceeded. It has been forecast that chase of commodities. Even then, in order before long the world's gold production may to make the intervention effective, the abbe at the rate of 40 million ounces per annum, sorption of savings to provide funds for the or more than twice as high as in 1929. acquisition of the new gold may have to be carried to the point at which it stiffens inter- The recent extension of production has est rates. In so far as credit measures are been based on present price and cost condiadopted to neutralise the effects of a too tions, and it may be questioned whether an inabundant gold production, it may thus be crease in costs, itself an effect of the larger asked whether it is possible to continue for supply of gold, may not be expected to exert long the application of a cheap money policy. a restraining influence on future production. In practice it may be difficult to follow the This presupposes, it should be noted, that the effects of the newly-mined gold as it moves measures for sterilising gold at present apfrom the producers to the various monetary plied do not succeed in preventing the incentres, but the tendency that such gold has creased supply from raising the level of costs to increase the demand for commodities canand prices. Let it be assumed, however, that not be doubted. costs and commodity prices reach a level ap- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1937 FEDERAL RESERVE BULLETIN 565 proximating to that obtaining in the years the problems that have thus arisen are being 1926-29; at $35 or 140 s. an ounce, the price seriously considered and that alternative soof gold would still be nearly 70 percent higher lutions are being put forward. For instance, than it was in those years. The Union Cor- the suggestion has been made that gold proporation in its report for 1936 states that duction should be controlled and reduced; but "weighted by the population of the various the adoption of such a measure, which decountries, the average price for gold through- serves further consideration, has become out the world is now some 85 per cent, above more difficult in recent years owing to the inthe average price for 1929." In these cir- crease in the number of producing centres. It cumstances, there is not much prospect for a has also been suggested that gold coins should number of years to come that a rise in costs again be put into circulation. In some counand prices will really exert a restraining in- tries it might be possible to do so, but exfluence on gold production. perience shows that, once the public has lost Turning to the demand for gold, it seems the habit of carrying gold coins, it is difficult likely that countries in the East will soon be- to reintroduce them into active circulation. gin to hoard the metal again. In the period And even if it were possible, it would not 1926-29 the gold demand from the East solve the whole problem. There would ceramounted to something like £15,000,000 a tainly be no increase in the commercial banks' year, and maybe a somewhat higher demand balances at the central bank so long as the can be expected as prosperity returns. More- gold went into circulation, but the new coins over, the adoption of gold as part of the when not hoarded might also constitute an monetary reserves of China may provide a addition to the existing volume of purchasing new outlet for gold in the East. The gold power, while gold production would not be that goes into the eastern hoards has, how- reduced. It is pertinent to remember that in the years before the war, when gold was effecever, as a rule to be acquired out of current tively in circulation to an extent that it would savings and a surplus in the balance of paybe difficult to attain again, the increase in the ments, and the amounts which will be South African gold production brought about absorbed cannot be very large. an appreciable rise in prices. An exceptional demand for gold may come from countries in which present monetary It has also been suggested that the price reserves are deficient. In the absence of for- paid per ounce of gold should be lowered eign lending, however, the replenishment of from the high figures to which it has risen in these reserves wTill most likely only be under-terms of depreciated currencies; in that way taken gradually. As far as France is con- the amount of monetary purchasing power cerned, a return flow of capital will no doubt produced by a given weight of gold would be be accompanied by a large movement of gold, reduced, and a restraining influence would but this movement will essentially be a redis- also be exerted on the output of gold, for gold tribution of existing supplies, being a re- mining would become less profitable. It can versal of a previous outflow. At a time when hardly be doubted that at present a lowering current gold production is at the rate of of the price of gold would help to cope with £245,000,000 a year, the influence of even a the serious problems resulting from the oversubstantial return movement of funds will abundant production. It would, however, hardly produce more than a temporary alle- cause certain difficulties with regard to valuaviation. tion of existing gold reserves and the relative position of currencies (the latter, in so far as It should also be mentioned that the deequilibrium has already been attained, should mand for gold in the arts and industry, which be disturbed as little as possible). It would, previously absorbed as much as 20 percent moreover, involve the danger of manipulaof the yearly production, at present absorbs tion of currencies in the future, which would less than 5 percent of the current output. add an element of instability and distrust to In these circumstances the countries that the monetary structure. already possess large monetary reserves will presumably continue to be faced with the task In the discussion of a reconstruction of the of absorbing large and increasing amounts of world's monetary system these various quesnew gold; and a continuation of the policy of tions, difficult though they may be, cannot be sterilisation will involve them in ever-in- avoided. Also from the point of view of the creasing expenses. It is not surprising that gold producers, it is important to establish Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

566 FEDERAL RESERVE BULLETIN JUNE 1937 conditions that will render gold continuously ceased but foreigners drew heavily on their useful as a basis for currencies, instead of accumulated short-term dollar assets and on concentrating attention on immediate profits. balance the outflow of capital from the United States continu-ad during 1931-33, accom- CAPITAL MOVEMENTS AND INTERNATIONAL panied at times by an efflux of gold and aug- SHORT-TERM INDEBTEDNESS. mented during the latter year by a flight of American funds from the depreciating dollar. Large movements of capital between creditor countries continued to dominate the ex- After the fixing of the new value of the change markets in 1936 as in the two previous dollar at the end of January 1934 at the rate years. The flow of funds effected through of $35 an ounce of gold, compared with the old transfers of gold to England, the Nether- price of $20.67, a violent change occurred in lands, Switzerland and particularly the the trend of capital movements: the United United States, has become an embarrassment States became overnight the biggest capitaland the possible effects of these large move- importing country in the world. In the three ments is a subject for serious consideration. years 1934-36 the import of capital amounted Foreign investment for the initiation of new to $4,000,000,000, corresponding almost exenterprises is still at a low ebb, in fact, debtor actly to the import of gold over the same countries whose exchange conditions have im- period (the active balance on current account proved are repaying old loans and credits, of the balance of payments being well covparticularly to England and the United ered by silver imports from abroad). This States. There are, however, signs of direct global figure includes a number of diverse private investment in such countries as the movements: American flight-capital re- Argentine and Australia, which have been turned, credits from American banks to forable to carry out their obligations during the eign countries were withdrawn, foreigners depression. Short-term foreign-owned bal- repurchased and redeemed issues previously ances have continued to accumulate in Lon-made in New York and bought American sedon and New York, while short-term credits curities, and also increased their short-term previously obtained from abroad by countries assets in the United States. where exchange restrictions are in force, as Of the $4,000,000,000 capital flow some well as other blocked and frozen debts, conthree-quarters are "recorded" in the annual tinue to be slowly and painfully liquidated. statistics on the balance of payments pub- The countries making these liquidations have lished by the U. S. Department of Commerce, in general insufficient external resources, while the remainder appears only in a "residwhile those receiving the funds are concerned ual item", which must also be taken to include about the growth of their monetary reserves. a certain allowance for the balance of errors The most important movement has been in and omissions on current account. On the the direction of the United States, and it can basis of these data, as well as from informabe followed, as in the case of no other country, tion recently issued by the U. S. Treasury with a large degree of accuracy—thanks to Department, the following table has been the statistical information made available by made showing the composition of the capital the U. S. Department of Commerce and re-influx for the years 1934-36: cently also by the U. S. Treasury. Before the war the foreign holding of NET CAPITAL INFLUX TO U. S. A. American securities was estimated at about $5,000,000,000 and, as foreign securities held [In millions of dollars] in the United States were negligible, this figure represented roughly the net debtor posi- ]Recorded "Resi- Grand Gold tion. During the war about half of these dual" i total imports Long- Short- Total (net) American investments were sold back and the term term world borrowed in the United States, which became a strong creditor country and in the 1934 194 192 386 482 868 1,132 1935 442 969 1,411 455 1, 866 1,739 'twenties the biggest lender to foreign coun- 1936 792 403 1,195 146 1,341 1,117 tries. To a certain extent, however, foreign- Total 1, 428 1, 564 2, 992 1, 083 4,075 3, 988 ers again built up a substantial holding of American investments. In 1931 American 1 Including, for convenience of presentation, some recorded miscellanelending on long and short-term account ous items) which explains the difference in the totals of the recorded movements compared with those given on page 560). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

567 JUNE 1937 FEDERAL RESERVE BULLETIN The movement was at its strongest in 1935 when the influx of short-term capital was Net Movement of Capital to United States greatest; it continued, however, on a large Cumulated weekly from 2nd January 1935, In million dollars scale in the following year with a preponder- In Banking Funds and Security Transactions ance of long-term transactions. Of the net recorded influx of short-term capital amounting in the three years to about $1,560,000,000, withdrawals by American banks from abroad account for $560,000,000, of which nearly half represents the gradual liquidation of frozen claims on European and Latin American countries. Foreigners (i. e. persons and institutions domiciled abroad) increased their balances and other shortterm claims in the United States by $1,000,- 000,000, the total amount accumulated at the end of 1936 being $1,500,000,000, i. e. about three times as much as at the end of 1933 but only half the volume of corresponding assets Analysis by origin of funds in 1929. When, however, comparison is made with the position seven or eight years ago, it must be remembered that central banks then possessed much larger dollar holdings than at present, and also that recent figures are somewhat more comprehensive than in previous years. At the end of September 1936 the principal holders of short-term assets in the United States were as follows: Millions of dollars United Kingdom 300 France 172 Netherlands 81 Switzerland 154 Canada 174 monetary uncertainty in Europe may suggest Latin America 203 possible instability in the future. But the Far East 211 All other 201 fact must not be overlooked that a very substantial part of these funds and the funds of Total 1,496 other countries which have built up balances in a regular manner represents an accumula- There was little decline of the balances of tion of working balances customarily em- France, the Netherlands and Switzerland ployed in foreign markets. "With an imafter September 1936, but some reflux of provement in world trade, it is not improb- British balances took place, accompanied by able that the working balances which would a reduction of the discount on forward ster- be kept here will increase markedly", wrote ling and some stiffening of interest rates in the Secretary of the U. S. Treasury in an open London. British banking funds employed in letter in September 1936; this is particularly New York, as well as American balances in true at the present time when so many coun- London, are very sensitive to movements of tries are forced to finance their own foreign short-term interest rates and the forward trade instead of being able to obtain dollar dollar-sterling exchange rate. credits. Some of the short-term assets held by for- The recorded net purchases of securities eigners in the United States may be "ref- by foreigners over the three years amount ugee" funds and the fact that the building- to $1,430,000,000, but of this $535,000,000, up of funds, on account of England and the or more than a third, represented net purold gold-bloc countries, took place at irregu- chases and redemptions of foreign securities lar intervals during periods of political and and may thus be regarded as a movement of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

568 FEDERAL RESERVE BULLETIN JUNE 1037 a permanent character. As regards pur- may not be disturbed for years, if past exchases of American securities by foreigners, perience is any guide. "There appear to have aggregating $895,000,000, the movement did been no sustained foreign withdrawals from not get under way until May 1935 and on thethe American security markets even during whole has tended to gain in force since then. the early years of the depression when con- The Federal Reserve Bulletin for July 1936 fidence was at a low ebb and prices were demakes the observation that "the purchase of clining sharply," says the Federal Reserve American securities by foreigners since May Bulletin. Although naturally an influx of cap- 1935 appears to reflect conditions in the ital continuing for more than three years at United States more than conditions in an average rate of over $100,000,000 a month Europe" and that "the sustained character of must be a cause of preoccupation, it seems the movement at times when European bal- unlikely that a sudden reversal of the moveances were not increasing, or were being re- ment will set in. duced, as in the five months ending April On the whole, American investments 1936, suggests that foreign investors believe abroad have been far more variable during the American market offers an opportunity the last decade than foreign investments in for profitable investment of their funds/' the United States. In 1926, 1927 and 1928 Similarly, after the currency changes of Sep- new foreign issues were floated in the United tember 1936, purchases of American securi- States at a rate of over $1,000,000,000 a year. ties continued as actively as ever. But, during the past three years the creditor The total of foreign investments in the position of the United States in respect of United States was not known with any cer- bond issues and short-term credits has been tainty until the U. S. Department of Com- reduced at a very rapid rate. It should be merce published the results of a detailed en- mentioned that American direct investments quiry, which gave the following picture for abroad in the form of industrial and comthe end of 1935: mercial businesses and participations, etc., have shown much greater stability than the TOTAL OF FOREIGN INVESTMENTS IN THE UNITED volume of bonded investments and short- STATES term credits. In fact, American direct in- [In millions of dollars] vestments abroad increased throughout the depression and at the end of 1935 accounted Great Gold i Can- Other for $7,835,000,000 out of the total of all Britain bloc ada c t o ri u e n s - Total American foreign investments of $12,630,- 000,000. Common stocks (market value) 372 552 408 683 2,015 Where have the funds come from that have Preferred stocks (par value).._ 146 64 66 53 329 Bonds (par value) 91 338 49 129 607 sustained the large capital movement to the Direct investments 362 276 322 85 1, 045 Other investments 403 235 161 240 1,039 United States in recent years? To throw light on this question it is of interest to sum- Total 1,374 1, 465 1,006 1,190 5, 035 marise the figures published by the U. S. 1 France, Netherlands and Switzerland. Treasury covering the influx of capital during the years 1935 and 1936 (upon which the "Although securities may have changed hands and market value fluctuated, foreigners have maintained in this country through- In In out the depression a volume of securities sub- SHORT-TERM CAPITAL millions ORIGIN OF INFLUX millions stantially as great as the amount now held," dol o l f ars do o ll f ars observes the Federal Reserve Bulletin, adding, "not more than 10 percent of the $5,000,- American net withdrawals United Kingdom 830 from abroad 456 F ranee 300 000,000 of long-term assets shown in the Net influx of foreign money 916 Netherlands 230 table as held by foreigners at the end of 1935 Switzerland 335 1,372 Other European countries 356 appears to have been acquired since 1933." Security transactions 2,051 The purchase of $600,000,000 American se- Net purchases of American Total Europe curities by foreigners in 1936, together with securities 917 Net purchases of foreign the rise of market values, is estimated to securities 316 have increased the foreign holding of Ameri- 1,234 All others can investments at the end of 1936 to about Total capital influx.. 2,607 2,607 $6,250,000,000. Many of these investments Total Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

569 FEDERAL RESERVE BULLETIN JUNE 1937 graphs given earlier in this chapter were the earlier period the French current balance based). of payments was active, whereas the strain American bank credits withdrawn in the of the efflux in recent years has fallen directly two years were met, by and large, from the on the Bank of France and the Paris market. current balances of payments of the coun- The heavy outflow of funds from the tries concerned—either from a general sur- French market during the first nine months plus, as in Finland, or from the earmarking of 1936 was the main factor responsible for of a particular item, as in the case of Ger- the forcing-up of the dollar-sterling rate from many (through the sale of registered marks). 4.95 early in March to over 5.05 in September The amounts employed for repatriations and 1936. After the devaluations at the end of cash redemptions of dollar bonds were also in September 1936 the sterling-dollar rate, rea large measure obtained from an active bal- leased suddenly from the pressure of incomance on current account in the countries ing funds from the continent, fell rapidly to which like Finland, Belgium and the Argen- 4.90 early in October. Short sales of French tine have been able thus to reduce their for- francs before devaluation were mostly eign indebtedness. With regard to the pur- against sterling, and this position was covchase of American securities and the build- ered in the first three weeks of October 1936. ing-up of dollar balances, on the other hand, The return flow of funds to France after deit cannot be said that the funds involved were valuation did not assume large proportions produced from an active current balance of and, in fact, was reversed in November and payments, except perhaps in a few cases, such the following months. In February 1937 a as Canada. For England, the transfer of credit of £40,000,000 was raised in London genuinely English funds was probably by the French Railways and after the suclargely offset by receipts from repayments of cessful issue of the National Security Loan old sterling loans (long as well as short- in France in the middle of March 1937 French term) , but for France, in particular, the out- banks sold some sterling to cover their subflow of funds was covered only by a charge scriptions in francs, while dollars were also on the monetary gold reserves. sold against francs. Capital exports from France went partly The return of Swiss capital, on the other to the United States, largely to England, but hand, was rapid after devaluation of the curalso to Belgium, Switzerland and the Nether- rency and appears to have been completed by lands. The U. S. Treasury figures do not December 1936, since when some slight efflux show a very large capital import from has taken place. In the last quarter of 1936 France. In the twenty-one months from the the cash assets of the two biggest banks in beginning of 1935 to the devaluation in Sep- Switzerland with large international business tember 1936 only $200,000,000 are recorded rose from Sw. fcs. 250,000,000 to Sw. fcs. as being from France ($130,000,000 short- 660,000,000, those of four smaller banks from term and $70,000,000 security purchases) — Sw. fcs. 135,000,000 to Sw. fcs. 225,000,000, equivalent to 3,000,000,000 of 1928 francs. while the cash of the cantonal banks rose But French capital exports were several times from Sw. fcs. 150,000,000 to Sw. fcs. 300,as great. In the same twenty-one months the 000,000; at the same time sight balances at Bank of France lost Fes. 32,000,000,000 of the Swiss National Bank increased from Sw. gold, to which should be added Fes. 5,000,- fcs. 460,000,000 at the end of September to 000,000 of credits raised abroad. Allowance Sw. fcs. 1,360,000,000 at the end of the year. must, however, be made for the adverse cur- The rapidity of the influx is shown by the rent balance of payments over the period con- fact that 85 percent of this increase took sidered, withdrawals of foreign funds, place in the month of October alone. hoarding of gold in France and certain other Besides Swiss capital there is doubtless items, together some Fes. 14,000,000,000, some foreign capital which has taken refuge which, deducted from the gross figure of in Switzerland and the employment of this Fes. 37,000,000,000, gives Fes. 23,000,000,- large accretion of funds without an inflation 000 (say, $1,500,000,000) as a measure of of values raises an acute problem. In the the French capital exported over this period. absence of new foreign issues on the market, This figure although large is little more than it has been suggested that approved foreign half of the estimated export of French capital securities already quoted on foreign stock exthat took place in the years 1924/26; but in changes should be introduced to the Swiss Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

570 FEDERAL RESERVE BULLETIN JUNE 1937 bourses; but, while such a measure might London, shows how the balances of American somewhat ease the plethora in Switzerland, banks were reduced during 1935 from the it seems likely that if successful it would in- high level at the end of 1934, the development volve the export of gold to countries which of a forward discount on sterling being suffialready have abundant reserves. cient to offset the higher interest rate in Lon- The return of Dutch capital was somewhat don and thus making the employment of slower in starting and was in fact rather pre- American balances in London no longer profceded by foreign funds. Towards the end ofitable. The low level reached in the autumn the year, however, the inward flow gathered of 1935 appears to be the working minimum momentum and by the middle of February of these banks. 1937 appeared to have ceased. Despite the Besides the balances of United States large transfers of gold caused by the flow of banks, the graph shows holdings of sterling funds to the Swiss and Dutch markets, the funds by certain bodies in British and stermonetary reserves in London and New York, ling-area countries. The sterling assets of far from being reduced, rose substantially in the Currency Commission and the excess of the last quarter of 1936 and at the beginning sterling assets over sterling liabilities of the of 1937. The gold supplies on the markets banks operating in the Irish Free State have were increased by current production, large remained very stable, being largely a form dehoarding on private account and the outof permanent foreign investment. India and flow of gold from France from November South Africa together, as mentioned in the onwards. next chapter, repaid in 1936 some £35,000,- The rise of spot sterling against the dollar 000 of old sterling loans from their own rein the summer of 1936 to a level which it was sources. Australia had a better year in 1936 expected would not be maintained led to a largely owing to the increased prices obtained flow of banking funds from London for emfor Australian exports in the latter part of ployment in New York, which could be adthe year; there was also some influx of forvantageously covered owing to the wide diseign funds. The sterling holdings of the Comcount on forward sterling. The following monwealth Bank increased by about £5,000,graph, giving the volume of certain funds in 000 over the year but this does not tell the whole story. The trading banks were also able to make a much-needed addition to their Certain Holdings of Sterling Assets in £ millions London funds, sorely depleted in the depression years. The Directors' Report of the Commonwealth Bank for June 30, 1936, says: "London funds at present are sufficient a for normal requirements but are not sufficiently high to provide an adequate reserve against adverse circumstances." On the other hand, London funds of the Reserve Bank of New Zealand and the trading banks shown in the graph fell by £5,000,000 sterling on balance over the year to £20,000,000 sterling, the lowest point since the formation of the Reserve Bank. Although the total of London funds now held compares very favorably with the period before the acquisitions of sterling by the government in 1933, the wide seasonal fluctuations to which New Zealand's exports are subject make the conservation of an adequate holding of London funds desirable. The sterling holdings of the central banks of Finland, Norway and Sweden rose by £10,000,000, while these banks added some £20,000,000 sterling to 8*163. 1935 1936 their gold holdings in 1936, the movement continuing in the early months of 1937. All Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1937 FEDERAL RESERVE BULLETIN 571 three banks hold part only of their gold as ish kroner) and the Mortgage Bank of the metallic reserve, the balance being considered Kingdom of Denmark raised £1,500,000 in as secondary cover and in Norway specifically London in December 1936 (which was sanccalled "funds placed temporarily in gold." tioned by the British Treasury as the pro- The Swedish position is unusual. The Swed- ceeds went to strengthen the sterling reish commercial banks normally hold net for- sources of a country in the sterling area). eign short-term assets to the amount of Kr. The short-term foreign debt of Danmarks 100,000,000-200,000,000, and in September Nationalbank was reduced in 1936, even 1936 these assets amounted to Kr. 130,000,- showing a small net surplus of assets in the 000. In the following months, however, the middle of the year for the first time since position was suddenly reversed and at the 1933. In January 1937 the net debt in forend of March 1937 the banks7 return showed eign exchange of the Nationalbank at Kr. 14,a net deficit of Kr. 155,000,000. This appear- 000,000 showed an improvement of some ance of a net liability was in no way due to Kr. 54,000,000 compared with January 1936. an adverse development of the balance of During 1936 the trade balance of Italy impayments, which, on the contrary, was active, proved, the passive balance being reduced to but to a movement into krona assets connected Lit. 2,100,000,000 from Lit. 3,200,000,000 in with the belief that the krona would appreci- 1935. The publication by the State of the ate about 7 percent to the old parity with various clearing accounts to which Italy is a sterling. The foreign exchange was sold to party was resumed in December 1936 and the Riksbank and accounts for the increase of these accounts showed a not unfavourable its holding of gold and foreign exchange to situation. abnormal proportions in the first quarter of The foreign indebtedness of Germany on 1937. account of repayments, devaluation of creditor currencies and other factors has been reduced as follows in recent years: Shipping Freight Index "Economist" figures 1898-1913= 100 FOREIGN INDEBTEDNESS OF GERMANY [In billions of reiehsmarks at end of month] h Julv Xov. Feb. Feb. Feb. Feb. Feb. /- 1931 1931 1932 1933 1934 1935 1936 f Lone-term _ 10.7 10.7 10. 5 10.3 7 2 6.4 6.1 Short-term _. 13.1 10.6 10. 1 8.7 6^7 6.7 6. 3 Vi VVv v7 v J Total 23.8 21.3 20.6 19.0 13.9 13.1 The figures for 1931 should be somewhat .,l,,l,lll. ,,I.T higher as in the returns for that year only debts above RM. 50,000 were included, whereas for later years the limit was low- Finland, besides repaying a long-term dol- ered to RM. 5,000. The German foreign debt lar loan in 1936, was able to increase its short- in gold values has thus been halved since the term foreign assets. The improvement in the liquidity crisis. The devaluations in 1936 short-term foreign position of Norway and brought further reductions of the capital Denmark is, however, in both cases partly debt, which now amounts to about RM. 11,due to the raising of new long-term debt 500,000,000. Credit lines under the standabroad. Swedish lending to the Norwegian still agreement continued to be reduced from Government and the Mortgage Bank of the RM. 1,567,000,000 at the end of February Kingdom of Norway amounted to Kr. 40,000,- 1936 to RM. 1,165,000,000 at the end of Feb- 000 in 1936 and Norway benefited also from ruary 1937 (of which RM. 1,041,000,000 were an improvement of freight rates, of great im- availed of). Conversions into registered portance to its merchant fleet now in full ac- marks in the first nine months of the 1936 tivity. The Danish Government borrowed agreement accounted for RM. 306,000,000 (of Kr. 40,000,000 in Stockholm in May 1936which RM. 255,000,000 were employed for (producing the equivalent of 45,000,000 Dan- travel purposes). The standstill agreement Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

572 FEDERAL RESERVE BULLETIN JUNE 1937 was renewed in February 1937 for a further mer of 1936, but there was some relief in the year with only slight modifications. The latter part of the year. Foreign credits check to the rapid reduction of the German granted to Polish banks were reduced by the short-term indebtedness in 1934 was due equivalent of over Zl. 50,000,000 during the partly to the maturing of long-term debt, year by repayments and by the devaluations which under the exchange restrictions was of foreign currencies in September, but in not transferred, and partly to the accumula- the meantime interest and other sums blocked tion of new indebtedness. In the first half of under the exchange restrictions were accum- 1934 the quotas of foreign exchange allotted ulating. At the end of the year an important to importers were gradually reduced and dur- credit was obtained in France. ing the year commercial debts to foreign The total foreign debt of Hungary has recountries grew considerably. German debts cently been estimated at 2,400,000,000 pengo on clearing and similar accounts reached compared with 4,300,000,000 pengo in 1931, their highest point of EM. 567,000,000 in but these figures are given in gold values and March 1935, after which time the effects of the depreciation of the currencies of the credithe New Plan for balancing imports and ex- tor countries accounts for the greater part of ports began to be felt and a gradual reduc- the apparent reduction, although some repaytion of these debts took place. From about ments of capital and repatriations of bonds RM. 500,000,000 at the beginning of 1936 the have also contributed. total clearing debts had fallen to RM. 415,- There are few signs of a revival of inter- 000,000 in November 1936. These accounts national trade financing. Over a wide area give, of course, only the cash balances rethe working of clearing agreements premaining of matured debts and thus do not cludes the financing of foreign trade through give a complete picture. In particular, Gerthe normal mechanism. The Governor of the many has in recent years exported to an in- Bank of England recently gave the amount of creasing extent on credit and the sums owing trade bills circulating in the London market to German exporters and not yet due for payat £130,000,000 in the spring of 1936 comment are not inconsiderable. During 1936 pared with £220,000,000/230,000,000 five the old commercial debts to England and Belyears earlier (these figures being not necesgium were completely repaid and under the sarily complete but comparable). The depresent system of payments with these councline of trade financing in dollars is even more tries no similar debts can be accumulated in remarkable, dollar bank acceptances outfuture; some other countries such as the standing declining from over $1,500,000,000 Netherlands and France were also able to at the end of 1930 to under $400,000,000 in obtain substantial reductions; on the other 1935-36. hand, German clearing debts to certain other Exports of foodstuffs and raw materials countries increased, particularly to Poland are, in general, made against very short for railway transit through the Corridor. credit terms or cash, in some cases even pay- The difficulties experienced with regard to ment in advance (for crop financing purthis and other amounts owing to Poland came poses) while credit for three months or at a bad time for that country, which suffered longer is given for industrial goods. It folearly in 1936 from a flight of capital; ex- lows that agricultural countries, having been porters tended to leave the foreign exchange paid cash for their exports, are normally inproceeds of exports abroad, imports against debted on commercial account in respect of cash increased and banks accelerated the re- their imports over three months and more. In payment of foreign credits. Foreign ex- so far as the industrial countries have in rechange restrictions were introduced in April cent years shortened the period of credit or, 1936, foreign trade control in May and trans- maybe, insisted on cash payment for their fer restrictions on the foreign debt service in exports, they have often placed severe bur- June. The active balance of trade fell from dens on the agricultural (usually debtor) Zl. 177,000,000 in 1934 to Zl. 64,000,000 in countries, even to the extent of forcing them 1935 and Zl. 23,000,000 in 1936, while, in ad- into exchange restrictions. dition, gold coin was imported for hoarding There is unfortunately insufficient inforpurposes. The gold reserve of the Bank mation available as to the terms of credit Polski fell from Zl. 510,000,000 in the middle given in international trade but in some counof 1935 to below Zl. 370,000,000 in the sum- tries, for which these credits are of great im- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

573 JUNE 1937 FEDERAL RESERVE BULLETIN portance, estimates have been made in con- In the field of middle-term credits, mention nection with balance of payments calcula- should be made of the arrangement of a £10,tions. As an example it may be mentioned 000,000 trade credit for Russia in the United that Polish imports in 1928-29 were at the Kingdom to run for five years at 5^/2 percent rate of over Zl. 3,000,000,000 per annum, with the principal and interest guaranteed by while trade credits outstanding were over Zl. the Export Credits Guarantee Department. 1,000,000,000, so that an average of four In addition a representative of this departmonths' imports was regularly made on ment was sent to China to study the possicredit. Credits granted by Polish exporters, bility of similar trade credits to that country. on the other hand, were around Zl. 300,000,- While these schemes are designed primarily 000, equivalent to about IV2 months' exports to increase British exports, they certainly only. When trade fell off after 1929, trade facilitate the general increase of trade by credits were reduced even more severely— prolonged credit terms. Now that for sev- Polish imports fell, requiring proportionately eral reasons, including the large production less financing, but the foreign exporters gave of gold, Russia is in less need of trade credits shorter as well as smaller credits. Polish im- than formerly, it has been granted middleports declined by one-third from 1929 to 1930, term credits on favourable conditions by a but the credits outstanding were reduced by number of countries including Czechoslomore than one-half—imports were again cut vakia, Germany and England. by one-third from 1930 to 1931 and again The continued stagnation of international credits were reduced by over 50 percent. By lending is partly the result of technical diffi- 1932 the value of Polish imports was little culties (such as the clearing systems) and more than one-quarter of what it had been in partly due to a feeling of uncertainty as to 1928-29 while the trade credits received from general monetary and political developments. foreign exporters were only one-eighth and Actually, the influence of the different factors represented the value of less than two months' is closely intertwined. It would seem, howimports. The credits granted by Polish ex- ever, as if there were a growing realisation porters were not so easily reduced and re- of the losses imposed upon the world by the mained the equivalent of about IV2 months' insufficient use made of the existing credit exports. In terms of cash this meant that on apparatus in international intercourse. In balance Poland repaid in three years about recent years great emphasis has often been Zl. 800,000,000 of trade credits—a striking laid on the part that appropriate credit conproof of the liquidity of these credits; the ditions may play in assisting recovery in the magnitude of this sum for Poland may best various national economies. But the same be realised when compared with the total gold need is found internationally; and at a time and foreign exchange reserve of the Bank when the development of foreign trade is Polski, which at its highest point in 1928 was urgently needed to maintain a balanced re- Zl. 1,350,000,000. covery this factor should not be minimised. Several other countries which export mainly agricultural or similar products are TREND OF INTEREST RATES now in a similar position, having almost en- Taking the world as a whole the tendency tirely repaid the normal trade credits on ac- in the year 1936 continued to be towards the count of imports and buying almost solely on establishment of low levels of interest rates a cash basis. These countries should be in a both on the short and long-term markets. Of strong position when trade revives—any twenty-six European central banks nine relengthening of import credits will go directly duced their official discount rates on balance to ease the exchange position and help to- during the year, only two rates were inwards the reconstitution of the central bank's creased, and the remainder were unchanged reserves. The marked increase in foreign throughout the year. Outside Europe the trade since the summer of 1936 has, no doubt, same tendency prevailed, official discount been accompanied by some growth of com- rates being reduced in Japan and the Dutch mercial lending internationally but hardly East Indies (January 1937) and no increases any new facilities have been extended to coun- being made. The money markets have been tries with difficult exchange positions. From characterised by a continued, and in many a purely technical point of view, it is not easy cases increased, liquidity; only in certain to combine the granting of credits with the countries of the sterling area, including Ausexisting system of clearings. tralia, Denmark and Norway, were there cer- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

574 FEDERAL RESERVE BULLETIN JUNE 1937 tain signs of a stiffening of rates during the than reduce the state of uncertainty. It is to year, while in the first quarter of 1937 the be hoped that in a period of relative prosperabnormally low rates which had prevailed on ity more calm and more caution will be obthe New York market became somewhat served and that efforts will be made to build higher. During the year there was a down- up a more enduring stability both in the ecoward adjustment of long-term interest rates; nomic and monetary sphere. but here also a reaction began to be notice- There still remains the pressing need of reable in some countries, especially in the early ducing trade barriers and particularly those months of 1937 when the quotations of Brit- extraordinary hindrances to trade in the ish gilt-edged securities moved sharply down form of quotas and prohibitions built up in in January and February, and United States the past seven years; the other acute problem government bonds declined in March. There is that of establishing a monetary system that was generally very little increase in bank will combine an international stability of excredit for industrial purposes, but in a large changes with a policy, both national and innumber of countries a rather marked advance ternational, directed as far as possible toin the volume of commercial financing re- wards the maintenance of a sound credit and flected the increase in commodity prices. currency position. In addition, the burden of international financial obligations must be CONCLUSION alleviated, where this has not yet been done, A year ago recovery was well on its way by conversions to a level of interest rates and spreading; now it has reached the stage more in conformity with present conditions. where strong upward forces dominate world Without attacking these fundamental probeconomy and threaten even to produce in some lems of world economy and finance, little hope branches a too rapid advance in costs and can be held out as to the chances of achieving prices, suggestive of boom conditions. It may a lasting improvement in the various nanot be sufficiently realised how rapid the tional economies. It cannot be denied, howchange has been and there may be a tendency ever, that a mastering of the problems instill to hold fast to certain pessimistic ideas, volved in business fluctuations is connected which may have been appropriate during the with the question of government expenditure, depression but are out of date now that con- particularly in view of the recent increase in ditions have changed. Account must be taken outlay on armaments; and this connection is of the fact that there has been an almost only one example of the political aspects of complete reversal of many of the problems the problems before us. It would be vain to before us and the policy to be pursued must think that purely technical arrangements can be modified accordingly. To mention only guarantee sound economic developments and one example: as far as government finance is make an improvement in the standard of livconcerned, not only has the need for extraor- ing possible, if the underlying conditions for dinary spending to stimulate general busi- a peaceful interchange of goods and a balness activity disappeared but such spending anced position in the different countries are may be directly harmful to a healthy devel- not fulfilled. All economic activity must opment. reckon with the future and if there is a con- On the whole it may probably be assumed tinued lack of stability, the soundest busithat, mindful of the violent economic changes nesses will be forced either into a curtailment during the post-war period, not only those in of their operations or compelled to take authority but also the public are more fully speculative risks. Instead of embarking upon aware of the dangers arising from the devel- expedients that would bring little or no adopment of an unbalanced position. It is im- vantage and might easily hamper normal portant, however, to concentrate attention economic development, an attempt should be not on the symptoms but to deal with the made to get to the root of the matters responmore fundamental causes liable to produce a sible for the present difficulties. World opindangerous disequilibrium. During the diffi- ion is beginning to demand that a serious culties that prevailed in the black days of the effort be made towards the solution of the depression, it was perhaps unavoidable that great outstanding problems, and this task many hasty measures should be taken, but must be attacked with the understanding, these, although understandable in an emer- courage and goodwill necessary to achieve gency situation, tended to increase rather satisfactory results. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1937 FEDERAL RESERVE BULLETIN 575 BALANCE SHEET OF THE BANK FOR INTERNATIONAL SETTLEMENTS AS OF MARCH 31, 1937, AND MARCH 31, 1936 [In thousands of old gold Swiss francs at par] Assets 1937 1936 Liabilities 1937 1936 I. Gold in bars 45, 087 24,198 I. Capital: Authorized and issued 200,000 shares II. Cash on hand and on current account with valued at 500,000,000 Swiss gold francs of banks _. _ 25, 636 9.601 which 25 percent paid up 125,000 125, 000 TTT Sight funds at interest 26,538 12, 960 II. Reserves: IV. Rediscountable bills and acceptances: (1) Legal reserve fund 3.784 3,324 (1) Commercial bills and bankers' accep- (2) Dividend reserve fund 6,092 5,845 tances 101,347 150,250 (3) General reserve fund 12,183 11, 690 (2) Treasury bills 130,696 188, 279 22, 059 20, 859 232, 043 338, 529 III. Long-term deposits: V Time funds at interest: (1) Annuity trust account... . 153,158 154, 340 (1) Not exceeding 3 months 27, 012 36.. 033 (2) German Government deposit 76, 579 77,170 (2) Between 3 and 6 months,_ . 1,669 (3) French Government deposit (Saar)... 1,404 2,031 (4) French Government guarantee fund.. 42, 819 61, 930 28 680 36 033 273, 959 295, 471 VI. Sundry bills and investments: (1) Treasury bills 111,390 100,006 IV. Short-term and sight deposits (various cur- (2) Railway and Postal Administration rencies) : bills and sundry investments . 148, 042 126, 838 (1) Central banks for their own account: (a) Not exceeding 3 months 105, 482 113,277 259, 432 226, 844 (b) Sight 24,148 26,020 VII. Other assets: 129,630 139, 297 (1) Guaranty of central banks on bills sold_ 1,329 6, 235 (2) Sundry items 96 6,383 (2) Central banks for the account of others' 2,985 1,425 12,619 (b) Sight 4,248 11, 334 4,248 14, 319 (3) Other depositors: (a) Not exceeding 3 months 8 83 (b) Sight 229 813 237 896 V. Sight deposits (gold) ... . .. 23, 309 19,088 VI. Miscellaneous: (1) Guaranty on commercial bills sold... 1,354 6,278 (2) Sundry items 29,973 30, 382 31,327 36, 661 VII. Surplus: Profit for the financial year ended Mar. 31. 9,072 9,194 Total assets 618, 842 660, 783 Total liabilities 618,842 660, 783 B.I.S. NOTE.—The whole of the short-term and sight deposits in various currencies (Item IV—Liabilities) are more than covered by 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) and the French Government Guarantee Fund (Items III—3 and 4) are similarly covered. The remaining long-term commitments (Items III—1 and 2) which are recorded in a restricted currency (although the Bank's commitment in respect of Item III—1 is not clearly established), 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 to a large extent 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

FINANCIAL, INDUSTRIAL, AND COMMERCIAL STATISTICS UNITED STATES 577 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

578 FEDERAL RESERVE BULLETIN JUNE 1937 MEMBER BANK RESERVES, RESERVE BANK CREDIT, AND RELATED ITEMS [In millions of dollars] Member bank Reserve bank credit outstanding reserve balances Treasury Other Mone- Treas- Money Treas- deposits Non- Fed- U. S. tary ury in cir- with mem- eral Date Bills Gov- Other gold cur- cula- ury Federal ber de- Reserve dis- Bills ern- Reserve Total stock rency tion cash Reserve posits ac- T'ntal xLxcess counted bought ment bank banks counts i otai (estisecuri- credit mated) ties End of month figures: 1936—Apr. 30 5 5 2,430 34 2,475 10, 225 2,500 5,886 2,531 682 356 260 5,486 2,664 May 30 5 3 2,430 35 2,474 10,402 2,490 5,953 2,583 518 337 256 5,719 2,866 June 30 4 3 2,430 35 2,473 10, 608 2,498 6,241 2,497 690 262 257 5,633 2,717 July 31 4 3 2,430 24 2,462 10,648 2,496 6,162 2,432 447 306 253 6,005 3,029 Aug. 31 8 3 2,430 30 2,471 10, 716 2,500 6,227 2,404 104 287 256 6,410 1,950 Sept. 30 9 3 2,430 30 2,473 10, 845 2,512 6,267 2,458 253 234 262 6,357 1,840 Oct. 31 6 3 2,430 36 2,476 11,045 2,516 6,351 2,388 77 205 262 6,753 2,175 Nov. 30 7 3 2,430 13 2,453 11,184 2,521 6,466 2,364 78 201 261 6,788 2,236 Dec. 31 3 3 2,430 64 2,500 11, 258 2,532 6,543 2,376 244 259 261 6,606 1,984 1937—Jan. 31 3 3 2,430 60 2,497 11,358 2,532 6,349 2,520 195 281 260 6,781 2,152 Feb. 27 5 3 2,430 27 2,465 11,436 2,536 6,399 2,608 194 288 253 6,695 2,078 Mar. 31 12 3 2,430 12 2,458 11, 574 2,541 6,377 2,753 311 236 258 6,639 1,398 Apr. 30 12 4 2,525 24 2,565 11, 799 2,543 6,426 2,967 88 288 257 6,881 1,594 Wednesday figures: 1936—July 1 4 3 2,430 35 2,473 10, 612 2,498 6,250 2,501 731 256 256 5,589 2,670 July 8 3 3 2,430 36 2,472 10, 622 2,498 6,242 2,508 507 263 256 5,814 2,883 July 15 3 3 2,430 42 2,478 10, 629 2,496 6,190 2,428 593 266 255 5,872 2,923 July 22 3 3 2,430 30 2,466 10,634 2,497 6,153 2,436 519 300 254 5,935 2,986 July 29 4 3 2,430 23 2,460 10, 642 2,496 6,123 2,441 466 298 253 6,016 3,049 Aug. 5 , 4 3 2,430 26 2,463 10, 650 2,496 6,163 2,427 439 321 254 6,005 3,051 Aug. 12 8 3 2,430 36 2,477 10, 661 2,498 6,170 2,421 338 337 255 6,116 3,167 Aug. 19 6 3 2,430 18 2,457 10, 678 2,499 6,184 2,410 215 342 255 6,229 1,813 Aug. 26 7 3 2,430 25 2,465 10, 695 2,501 6,184 2,410 143 336 256 6,332 1,892 Sept. 2 9 3 2,430 21 2,463 10, 717 2,502 6,225 2,375 107 280 255 6,441 1,958 Sept. 9 8 3 2,430 41 2,482 10, 736 2,508 6,276 2,365 55 271 288 6,471 1,997 Sept. 16 8 3 2,430 54 2,495 10, 762 2,507 6,255 2,371 418 251 263 6,206 1,714 Sept. 23 7 3 2,430 33 2,473 10, 786 2,509 6,239 2,399 388 255 263 6,225 1,743 Sept. 30 9 3 2,430 30 2,473 10,845 2,512 6,267 2,458 253 234 262 6,357 1,840 Oct. 7 - 8 3 2,430 31 2,472 10, 971 2,509 6,305 2,440 196 271 263 6,479 1,954 Oct. 14 8 3 2,430 43 2,485 11,003 2,512 6,316 2,421 135 249 261 6,617 2,072 Oct. 21 6 3 2,430 23 2,463 11,008 2,514 6,311 2,403 88 227 264 6,693 2,127 Oct. 28 6 3 2,430 23 2,462 11,031 2,514 6,302 2,390 100 220 263 6,732 2,158 Nov. 4 7 3 2,430 7 2,448 11,058 2,515 6,378 2,392 95 200 262 6,693 2,138 Nov. 10 7 3 2,430 29 2,470 11,105 2,516 6,393 2,366 55 191 262 6,825 2,260 Nov. 18 5 3 2,430 25 2,464 11,127 2,520 6,375 2,378 50 197 260 6,851 2,276 Nov. 25 6 3 2,430 18 2,457 11,162 2,520 6,429 2,370 79 206 261 6,795 2,210 Dec. 2 6 3 2,430 28 2,467 11,188 2,522 6,466 2,353 110 212 260 6,775 2,205 Dec. 9 . 6 3 2,430 29 2,468 11, 206 2,525 6,497 2,372 93 229 278 6,731 2,157 Dec. 16 8 3 2,430 42 2,483 11, 222 2,532 6, 552 2,346 173 227 265 6,674 2,046 Dec. 23 9 3 2,430 100 2,542 11, 229 2,531 6,680 2,342 251 256 266 6,507 , 1,881 Dec. 30 5 3 2,430 46 2,484 11,251 2,530 6,550 2,368 231 274 270 6,572 1,946 1937—Jan. 6 3 3 2,430 28 2,464 11,271 2,531 6,473 2,395 232 278 261 6,627 2,010 Jan.13 2 3 2,430 40 2,476 11, 306 2,528 6,371 2,439 190 308 261 6,740 2,103 Jan. 20 2 3 2,430 32 2,468 11,317 2,533 6,339 2,463 188 312 261 6,755 2,130 Jan. 27 3 3 2,430 42 2,478 11, 345 2,531 6,318 2,503 180 315 259 6,779 2,160 Feb. 3 3 3 2,430 28 2,463 11, 364 2,531 6,348 2,529 176 286 261 6,758 2,150 Feb. 10 3 3 2,430 42 2,477 11, 387 2,531 6,360 2,563 132 310 259 6,771 2,184 Feb. 17 3 3 2,430 41 2,478 11,403 2,530 6,351 2,575 162 300 256 6,768 2,186 Feb. 24 4 3 2,430 22 2,460 11,425 2,532 6,372 2,602 180 302 255 6,705 2,097 Mar. 3 7 3 2,430 17 2,457 11,443 2,535 6,407 2,620 216 280 253 6,660 1,310 Mar. 10 5 3 2,430 16 2,454 11, 484 2,537 6,376 2,672 186 238 254 6,749 1,380 Mar. 17 4 3 2,430 12 2,450 11,515 2,538 6,385 2,697 87 243 261 6,830 1,449 Mar. 24 8 3 2,430 22 2,463 11, 541 2,537 6,375 2,723 279 326 260 6,578 1,269 Mar. 31 12 3 2,430 12 2,458 11, 574 2,541 6,377 2,753 311 236 258 6,639 1,398 Apr. 7 8 3 2,459 23 2.493 11,592 2,539 6,387 2,774 275 247 258 6,684 1,442 Apr. 14 11 4 2,487 27 2,528 11, 697 2,541 6,383 2,876 112 236 258 6,901 1,627 Apr. 21 8 3 2,487 25 2,523 11, 737 2,540 6,388 2,914 119 245 259 6,877 1,587 Apr. 28 11 4 2,526 29 2,571 11, 782 2,541 6,381 2,956 95 270 258 6,934 1,643 May 5 17 4 2,526 30 2,577 11,838 2,547 6,426 3,013 97 286 257 6,882 887 May 12 16 5 2,526 29 2,576 11,882 2,545 6,405 3, 056 106 237 257 6,943 936 May 19 15 4 2,526 19 2,565 11,907 2,547 6,399 3,079 117 250 256 6,918 907 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 1935 (table 2) and for excess reserves in BULLETIN for August 1935, pp. 499-500. Averages of daily figures for recent months and years are shown in the table on p. 512. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1937 FEDERAL RESERVE BULLETIN 579 PRINCIPAL ASSETS AND LIABILITIES OF ALL FEDERAL RESERVE BANKS [In thousands of dollars] Wednesday figures End of month 1937 May 19 May 12 May 5 Apr. 28 Apr. 21 Apr. 14 Apr. 7 April March April ASSETS Gold certificates on hand and due from U. S. Treasury I, 838, 913 8,839, 40,88 482,, 842, I90,2 884,3 ,843, 402 8, 843, 903 8, 8$43,, 8 84934, 8, 843, 905 8, 884443,,4 30805 78,,, 703, 835 Redemption fund—F. R. notes 11,583 1"1 ,7"1 3 10, 0-79 9~, — 5 95 9", — 776 10, 656 11,149 9, 595 11,375 12, 877 Other cash 289,155 288, 280 279, 497 289,136 282, 306 279, 673 273, 758 282,019 285, 028 332,496 Total reserves. 9,139, 651 , 139, 401 132, 478 9,142,133 9,135, 985 9,134, 223 9,128, 812 9,134, 999 9,140,803 8, 049, 308 Bills discounted: For member banks 15, 282 15, 654 16, 835 10, c 7,492 10, 848 7, 950 12,098 11, 807 5,474 For nonmember banks, etc 200 200 200 10 Total bills discounted. 15,282 15, 654 16, 835 10, 999 7,692 11,048 8,150 12, 098 12, 007 5,484 Bills bought: Payable in dollars 1,404 1,465 670 674 396 444 354 265 Payable in foreign currencies. 3,071 3,069 3,069 3,069 3,069 3,078 3,082 3,069 3,082 4,684 Total bills bought. 4,475 4, 534 3,739 3,743 3, 465 3, 522 3,436 3,738 3,347 4,684 Industrial advances 22, 523 22, 779 22, 854 23,180 23, 084 22, 544 22, 566 22, 954 22, 338 30,346 XJ. S. Government securities: Bonds 732, 608 732, 428 732, 428 734,728 688, 621 689, 621 662,084 733, 478 636,890 265, 683 Treasury notes 1,152, 2131,152, 3931,152, 3931,156, 3931,174,3431,190, 3431,190, 3431,156, 3931, 218, 8431, 554,889 Treasury bills 641,469 641, 469 641, 469 635,119 623, 619 606, 619 606, 619 635,119 574, 494 609, 667 Total Government securities.. 2, 526, 2902, 526, 290 ,25,2 65,26, 29,0 25,2 65,2 62,< 240 2,486, I5,8 34 826,, 486, 583 2,459,5 2044,6 9 29,0,430,227 2I,, 430, 239 Other Reserve bank credit 6,295 ~7, 1'8"4' 6", '4"'8•6 2,227 4', 4~7'1 -493 932 -9, 4, 330 Total Reserve bank credit outstanding. 2, 564, 690 2, 575, 552 2, 576, 902 2, 570, 648 2, 5223,, 502581,168 2, 492, 705 2, 564, 712 2, 458, 239 2, 475, 083 LIABILITIES F. R. notes in actual circulation 4,184, 425 4,193, 868 4, 207, 722 4,176, 990 4,184, 068 4,176,094 4,178,4 ,6 62104, 714 4,174, 2331, 762,106 Deposits: Member bank—reserve account.. . 6, 918, 227 6,942, 727 688,2, 362 6,933,816 6, 876, 640 6, 19,0705,2 , 683, 9646, 881,1676, 639, 0805 ,5, 485, 655 U. S. Treasurer—general account. 116,777 1"0-6, 1•7 7— 97, 263 94,747 118,631 111,674 274, 867 88, 010 310, 950 682,139 Foreign bank 126,110 104, 979 103,914 96,017 99, 234 93, 622 93, 463 94, 873 71, 405 80, 635 Other deposits 123, 933 131, 566 181, 699 173, 966 145, 780 142, 271 153,102 192, 664 164,149 275, 262 Total deposits.. 7, 285, 047 7, 285, 449 7, 265, 238 7, 298, 546 7, 240, 285 7, 248, 319 7, 205, 396 7, 256, 714 7,185, 584 6, 523, 691 Ratio of total reserves to deposit and F. R. note liabilities combined (per cent) 79.7 79.6 79.7 •0.0 79.7 78. 3 MATURITY DISTRIBUTION OF BILLS AND U. S. GOVERNMENT SECURITIES HELD BY FEDERAL RESERVE BANKS [In thousands of dollars] Total W 15 i d th a i y n s 16 d a to y s 30 31 d a to y s 60 61 d a to y s 90 m 91 o t o d n a t 6 h y s s m 1 o t y n 6 o e t a h r s 2 1 y t y e o e a a r r s 2 5 y y t e o e a a r r s s 5 O y v e e a r rs Bills discounted: Apr 28 10,999 10.226 59 84 487 133 10 May 5 16, 835 15,911 95 119 511 171 28 May 12 15, 654 14, 580 133 465 218 239 19 May 19 15, 282 14,044 108 586 132 402 10 Bills bought in open market: Apr 28 3, 743 30 310 614 2,789 May 5 3, 739 206 243 541 2, 749 May 12 4,534 874 136 666 2,858 May 19 4,475 364 457 581 3, 073 Industrial advances: \pr 28 23,180 942 221 413 661 2, 269 3, 815 5, 558 9,301 Alay 5 22, 854 837 245 586 1,108 1, 634 3, 728 5,517 9,199 Mav 12 22, 779 795 206 577 1,101 1, 688 3,840 5, 569 9,003 Mav 19 22, 523 817 188 552 1, 024 1, 742 3,719 5, 515 8,966 U.S. Government securities: Apr 28 2, 526, 240 23, 790 27, 770 59, 278 67,123 354, 334 375, 302 254, 971 679,815 683, 857 Mav 5 2, 526, 290 27,420 26,007 63, 221 65, 208 351, 765 376, 376 254,971 679,815 681, 507 May 12 2, 526, 290 27, 870 24, 667 68,121 73,108 344,144 372,087 254,971 679,815 681, 507 May 19 2, 526, 290 26,107 28, 520 68,298 76, 689 333, 891 376, 312 254,971 679, 815 681, 687 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

580 FEDERAL RESERVE BULLETIN JUNE 1937 ASSETS AND LIABILITIES OF THE FEDERAL RESERVE BANKS, BY WEEKS [In thousands of dollars] Total B to os n - Y N o ew rk 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 - a A n t t - a hicago L S ou t. is n M o e l a i i n p s - - K C s a i a t n s y - Dallas c F S i r s a a c n n o - Gold certificates on hand and due from U. S. Treasury: Apr. 28 8. 843, 402 =76,086 383, 347 38, 562 652, 533 563, 730 !38. 714 764, 548 71, 732 80, 559265, 731 .69, 436 38, 424 May 5 8, 842, 902 "3, 288 308, 297 37, 676 686, 035 583,185 !47, 797 736, 658 !71, 066 188.209 274, 405 .82, 482 53, 804 May 12 8, 839, 408 :67, 406 304, 863 .22. 660 690,447 81, 529 !50, 041 728, 828271, 701 200, 352274, 963 82,104 64,514 May 19 8, 838, 913 =53, 933 347, 482 .28,150 681, 240 !79, 63" !44, 970 738, 262267, 544L91, 224 1, 374 .77, 469 57 68 Kedemption fund—Federal Reserve Notes: Apr. 28 9, 595 901 908 346 590 522 1.883 316 1, 335 750 483 540 1,021 May 5 10,079 901 908 346 590 522 V 800 1,335 750 483 540 1,021 May 12 11,713 826 1,45; 703 935 471 1, 769 627 1,286 732 436 520 1,951 May 19 11,583 796 1,336 653 898 691 1. 735 586 1,276 728 430 514 1,940 Other cash: Apr. 28 289,136 32, 603 85, 27,0; 16,908 20, 680 11.08.r 29,941 13, 525 5, 532 16,611 6,192 23,897 May 5 279, 497 37, 854 76, 291 25,129 16,128 21, 486 11.184 29. 55512. 368 5, 358 15, 420 6, 240 22, 484 Tota M M l r a a e y y s e 1 1 r 2 9 ves: 2 2 8 8 8 9 , ,1 2 5 8 5 0 3 3 9 9 , , 3 4 2 5 3 8 8 8 6 3 , , 5 7 6 6 4 0 2 24 5 , , 3 5 3 7 £ 6 1 1 2 2 , , 8 4 1 7 2 0 2 1 0 9 , . 0 3 7 8 9 1 1 1 1 0 . , 6 8 8 4 5 8 2 32 9 , . 1 3 8 4 3 0 1 1 3 4 , , 4 6 9 0 4 7 4 5 . , 8 0 3 6 0 4 1 1 6 5 , , 3 67 7 0 8 6 6 , , 3 2 3 5 9 2 2 2 3 3 , , 2 6 9 8 8 9 Apr. 28 9,142,133 509, 590 469, 340 565, 670, 031284, 932 251. 68: 794,805286, 592.86,841 282, 825 76.168 163, 342 May 5 9,132,478 512.043 385, 496 563,151 702, 753305,193 260. 864 767,013284, 769194,31' 290, 308 89, 262 577, 309 May 12 9,139, 401 507, 555 392, 884 548. 698 703, 852301.381 263. 495 758.638286. 481205,914291.— 88, 963 389, 763 May 19 9,139,651 494,187 432, 578 553, 379 694. 950300, 407257, 553 771,188283, 427197,016 187, 474 .84, 235383, 257 Bills discounted: Secured by II. S. Government obligations direct or fully guaranteed: Apr. 28 9, 366 794 3,411 1,718 180 63( 1, 250 120 175 15 170 748 155 Mav 5 13,917 994 5, 982 1,728 252 265 1,160 520 250 805 245 848 868 May 12 12, 949 664 6, 583 1,858 275 418 1.215 130 171. 300 45 808 478 May 19 11,624 899 5,711 1, 438 34C 392 465 185 525 500 45 Other bills discounted: Apr. 28_. 1,633 1,058 127 31 79 105 64 MMaay 5 2, 918 1,36' 122 808 14 145 74 241 May 12 2, 705 156 1, 651 11 350 54 137 85 141 May 19 3,658 357 1,537 104 1,25; 74 151 109 64 Total bills discounted: Apr. 28 10, 99S 901 4, 469 1,845 198 63S 1.25' 143 206 20 249 853 219 May 5 16, 835 1,144 7, 346 1, 850 252 26£ 1,968 520 264 805 390 922 1,109 May 12 15, 654 820 8,234 1. 969 275 418 1. 565 145 229 305 182 893 619 May 19 15, 282 1, 256 7,248 1,542 34i 392 1,722 185 599 505 196 953 344 Bills bought in open market: Apr. 28 3, 74S 223 1, 73 318 292 11! 384 86 6f 249 May 5 3,731 223 1,728 318 292 11! 383 86 6( 249 May 12 4,53' 223 2, 523 31 292 11! 383 6( 8' 249 May 19 4,47, 223 2,014 394 374 14' 459 114 112 312 Industrial advances: Apr. 28 23,180 3,2' 6,094 1,04' 2,19C 1,006 337 784 704 1, 33* 1,911 May 5 22, 854 3, 22C 5, 956 4, 981 2.18' 1, 006 335 777 683 1, 338 1,927 May 12 22, 779 3, 220 5,966 4, 111 983 2,17: 1,006 683 1, 33c 1,925 May 19 22, 52c 3,182 5,91 4.104 9; 2,131 92C 332 677 1, 32/: 1,921 U. S. Government securities: Bonds: Apr. 28 734, 53, 54 210. 85f 62, 04! 71, 52( 38, 69C 32, 321 32, 391 23, 89! 36, 09C 28, 68C 63, 704 May 5 732, 428 53, 37: 210, 61.84 71, 292 38, 56 32,27 80, 706 32, 29C 23, 82: 35, 98; 28, 59 63, 501 May 12 732, 42£ 53, 37! 210. 185 61, 84 71,291 38, 56( 32, 271 80, 706 32, 29C 23. 82: 35, 98; 28, 594 63, 501 May 19 732, 608 53, 38, 210, 23c 61,86 71, 301 38,57 32, 80, 726 32, 29* 23, 82! 35, 99: 28, 601 63, 516 Treasury notes: Apr. 28 1,156,395 84, 27! 331,89. 97, 65( 112,57 60, 89* 50, 80(i 127, 441 50, 98* 37, 61 56, 821 45,15C 100,273 May 5 1,152, 39c 83, 98' 330, 74: 97,31 112,18f 60, 68; 50, 631 126, 991 50, 81 37, 488 56, 62 44, 994 99, 925 May 12 1,152, 39c 83, 98' 330, 74: 97,31 112,18£ 60,68 50, 631 126, 991 50,81 37, 48* 56, 62c 44, 994 99, 925 May 19 1,152, 2i; 83, 97' 330, 69: 97, 30: 112,167 60,67 50, 622 126, 971 50,80 37, 482 56, 61 44, T 99, 910 Treasury bills: Apr. 28 635, II1 46, 287 182, 282 53, 63C 61.82* 33, 44' 27, 90J 69, 991 28, 004 20, 66C 31, 20; 24, 7 55, 072 May 5 641, 46( 46, 75C 184, 54,17 62, 44f 33, 78 28,18' 70, 69: 28, 284 20, 86€ 31,51 25,04( 55, 623 May 12 641, 46' 46, 75C 184, 10, 54,17 62, 44! 33, 78 28.18' 70, 69: 28, 284 20, 866 31,51! 25, 041 55, 623 May 19 641,46' 46, 75C 184, lOi 54,17: 62, 441 33. 78 28.18' 70, 69: 28, 28- 20, 86C 31,51! 25,04( 55, 623 Total U. S. Government securities: Apr. 28. 2, 526, 24C 184, 101 725, 02S213, 33, 245, 9: 133, 03, 111.04C 278, 398111, 38£ 82,17( 124,12; 98, 63' 219,049 May 5_. 2, 526, 29C 184. 101 725, 021213,331 245, 9% 133, 03' m,09( 278, 398lll,38f 82,171 124,12' 98, 63' 219,049 May 12. 2, 526, 291 184, 725, 021213, 33i 245, 92! 133, 03< 111,09: 278, 398111, ' 82, T 124,12' 98, 63' 219,049 May 19. 2, 526, 291 184,101 725, OS 213, 33i 245, 92! 133, 03 111,09: 278, 398 82,17 124, 12' 219, 049 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1937 FEDERAL RESERVE BULLETIN 581 ASSETS AND LIABILITIES OF THE FEDERAL RESERVE BANKS, BY WEEKS—Continued [In thousands of dollars] Total B t o o s n - Y Ne o w rk P p d h h e i i l l a - a- C l l a e n v d e- m Ri o c n h d - la A n t- ta Chicago L S ou t. is n M o e l i a i n p s - - K C s a i a t s n y - Dallas F c S r i a s a n c n o - ASSETS—continued Total bills and securities: Apr. 28 2, 564,162 .88,511 737, 323219, 723 247, 457135,983112, 672 279, 931112,014 83, 040125,167 100,913221, 428 May 5 2, 569, 718 .88, 696 740,059219,682 247, 447135, 602113,435 280, 307112,070 83, 818 125i,,287 100,•' 222, 334 May 12 2, 569, 25r .88, 372 741, 752219, 742 247,472 1'3 5~', "i7,' 741313,014 279, 932112, 035 83, 327125, 079100, 947 221, 842 May 19 2, 568, 570 88, 770 740, 206219, 376 247, 615135, 711113,190 279, 962 112!;, 42983, 547125,114 101,024221, 626 Due from foreign banks: A M M M p a a a r y y y . 2 5 1 1 8 2 9 2 2 2 2 3 3 3 2 0 0 8 0 1 1 1 1 7 7 7 7 2 2 2 2 3 3 3 3 2 2 2 2 1 1 1 1 1 1 1 1 0 0 0 0 8 8 2 2 2 2 7 7 7 ' 3 3 3 3 1 1 1 1 6 6 6 6 Federal Reserve notes of other banks: Apr. 28 21,033 348 5,712 904 1,21 1, 825 2,384 2,645 1,221 1, 251 522 1,736 May 5 21,036 352 4,258 990 1,310 1,704 2.169 2,866 2,011 1, 429 1,508 534 1,905 May 12 21,542 360 4,77" 906 1,331 1,513 2, 476 2,915 1,979 732 1,524 475 2, 556 May 19 21,402 369 4,68 972 1,366 1,917 1,78" 2,067 2,270 1,119 1,558 512 "Uncollected items: 2,784 Apr. 28.. 626, 231 63, 470 149, 37 46,219 64, 043 51,097 26, 664 88,152 27, 836 18, 005 31,158 24, 550 35, 660 M M /Fa a a) y y 1 5_ 2 . 6 6 1 6 6 6 , , 8 7 7 6 4 2 6 7 7 2 , ,0 6 3 3 6 1 1 15 4 7 6 , , 4 9 0 3 7 6 5 5 0 3 , , 5 36 4 1 2 6 6 0 9 , , 0 8 7 8 0 3 5 5 2 9 , , 6 6 3 6 4 0 2 2 4 3 , , 1 3 7 7 1 6 8 9 6 5 , , 2 2 8 9 1 3 2 2 8 8 , ,8 5 8 3 9 7 1 15 6 , , 4 0 9 9 6 5 3 32 1 , , 9 9 3 0 8 3 2 2 2 5 , , 2 9 1 7 3 7 3 2 2 9 , , 7 5 3 73 4 May 19 701, 718 76,794 175,818 54,745 67, 236 58, 433 26, 816 97, 281 29, 792 16, 997 36, 361 27,418 34,027 Bank premises: Apr. 28 45, 861 3,043 10,088 4,910 6, 333 2,773 2, 224 4,682 2, 376 1,500 3,244 1,269 3,419 May 5 45, 785 3, 038 10,071 4, 910 6, 320 2, 773 2,223 4,671 2,372 1, 498 3,230 1,264 3,415 May 12 45, 787 3.038 10, 071 4,910 6, 320 2,773 2, 223 4, 671 2,372 1,500 3, 230 1,264 3,415 May 19 45, 788 3, 038 10,071 4, 910 6, 320 2,773 2,223 4, 671 2,373 1,500 3, 230 1, 264 3, 415 All other assets: Apr. 28 45, 495 2, 720 12,755 6,190 4,802 2, 800 1,793 4, 098 1,704 1,580 1.994 1,73! 3, 327 May 5 45,122 2,758 12, 735 5,441 4, 838 2, 794 1,794 4,194 1,730 1, 598 1,97 1, 878 3, 385 May 12 45, 956 2,814 13,07J 5, 629 4, 900 2,858 1,820 4, 275 1. 760 1,606 2,010 1, 761 3,448 May 19 46, 464 2,868 13,145 5, 563 4, 984 2,847 1, 858 4,364 1, 790 1,631 2, 098 1,812 3,504 Total assets: A M p a r y . 2 5 8 1 1 2 2 , , 4 4 3 4 1 5 , , 2 1 4 4 3 5 ' 7 6 4 7 , , 6 5 9 3 9 5 4 4 t:, , 2 3 9 8 9 4 , , 113 8 84 4 4 3 , , 9 7 5 3 4 91, 9 0 9 2 3 3 , , 572500 i , , 7 1 4 0 2 0 4 0 3 3 9 , 7 8 , 6 4 9 2 7 2 , 2 1 , 4 1 5 7 , 4 , 3 5 3 9 4 0 4 3 4 1 3 , 1 , 4 9 7 3 4 7 2 9 2 8 9 , 2 , 7 5 24 8 34 :5 4 , 5 ,24 6 5^ 4 5 63 3 0 1 5 6 , , 1 9 6 0 0 3 9 93 2 7 8 , , 9 9 2 3 8 7 May 12 12, 488, 935 74,192 4, 320, 580 81333. !2691, 032. 966503, 938 407, 207 2,145, 751 433, 520 308, 57 1, 530318,630953, 774 May 19 12, 523, 821 '66, 0434, 376, 584838, 9681, 022, 492502, 098 403, 435 2,159, 560 432, 085 3018,1 "3 455, 842316,272948, 629 LIABILITIES Federal Reserve notes in actual circulation: Apr. 28 4,176, 990 319,438 889, 743311.912 425, 686193, 379182, 747 963, 699178,254139,700 159, 270 18, 71; 324,449 M a y 5 4, 207, 722319, 691 899,147311,295 427, 17"192,935184,090 970, 585179,701 141, 397160,930 10, 64, 330,129 May 12 4,193, 868 313, 301 890, 988313,900 430, 974195,329182,352 969, 364178, 340140,582 159,459 694 329, 585 May 19 4,184,425 307, 803 894, 201312,114 426, 301193,745181,136 970, 374178,24 140,118159, 740 90,19! 330, 454 Deposits: Member bank—reserve account: Apr. 28.. 6, 933, 816346,0123,051,462433,948 437, 003210, 286167, 0' 1,053,102197, 82 116,546 234:,,6677:3167, 984 I517, 898 MMaay 5 6, 882, 362350,1492, 941, 429 •-4"3>6,5,9C 466, 656230, 235176,569 1,015,843199, 242124, 043241, 605177, 706 5- 2.25,,'.295 Ma>7 12. 6, 942, 727346, 3872, 986, 064419, 669 466, 121227, 170180,5811,018,315200,812133, 456246, 969 180, 831 536, 352 May 19. 6, 918, 227341,1513, 000, 91422, 609 459, 88'225, 860173, 7821,022,17'.198, 599 127, 833 238, 9211.73, 770532, 728 U. S. Treasurer—general account: Apr. 28 94, 747 4,167 39, 663 1, 86 7, 366 2,227 2, 069 12,666 4,540 2, 726 7, 461 2,302 7,693 May 5 97, 263 4,624 40, 774 2,414 4, 915 4,152 1, 826 14,544 2,303 1, 98C 5, 874 4, 403 9,454 M M a a y y 1 1 9 2 1 1 0 1 6 6 , , 7 r~ 8 6 , , 1 2 3 0 1 0 6 76 0 , , 7 0 9 8 1 5 2 2 , , 3 4 2 5 ^ 9 3 2, , 0 9 3 7 4 8 2 1 , , 1 2 6 8 6 9 2 2, , 2 1 6 0 3 2 5 7, , 4 2 2 0 1 8 3 2, , 1 7 7 1 6 0 2 2 , , 8 2 9 3 7 4 4 6 , , 5 1 6 0 4 0 2 1 , , 5 7 6 9 3 5 9 4, , 9 5 2 3 4 7 Foreign bank: Apr. 28 96,017 7, 010 34. 659 9, 410 8,834 4, 129 3, 361 11,138 2,881 2,208 2,785 2,785 6, 817 May 5 103, 91 7,570 37, 651 10,162 9, 540 4, 459 3, 630 12, 029 3, 111 2, 385 3,007 3,007 7,363 M M a a y y 1 1 9 2 1 10 2 4 6 , ,1 9 1 7 0 9 7 9 , , 1 5 5 7 3 0 3 45 8 , , 7 9 1 9 6 3 1 12 0 , , 1 2 6 8 5 8 1 9 1, , 5 5 3 4 6 0 4 5 , , 4 3 5 9 9 2 3 4, , 3 6 8 3 9 0 1 1 2 4 , , 0 2 5 1 4 : 5 3 3, , 7 1 5 1 5 1 2 2, , 8 3 8 8 4 5 3 3, , 6 0 3 0 6 7 3 3 , , 6 0 3 0 6 : 8 7 , , 3 9 6 0 3 3 Other deposits: Apr. 28 173,966 2,757 102, 992 6, 307 21,346 5,673 3,611 1,632 8,16' 4, 561 152 4, 900 11,868 May 5 181,699 2, 851 117, 906 1, 495 21,971 3, 607 2,421 1,653 7,195 3,955 171 5,274 13, 200 May 12 131, 566 2, 712 69, 079 1,293 22, 992 3,231 2,606 2; 007 6,937 4,146 158 4,558 11,847 May 19 123, 933 2, 535 64, 582 1, 226 22, 768 2, 559 2,564 2,143 6,857 2,816 17 4,379 11,327 Total deposits: Apr. 28 7, 298, 546 359, 9463, 228, 776451, 532 474,549222, 31 176,1141,078,538 2131,,417126,041245,071 77, 971544, 276 May 5 7, 265, 238365, 1"94 33.,137, 760450.661 503, 082242, 453184, 4461,044,069 211,851 132,363 250, 657190, 390552,312 May 12 7, 285, 449 :, 8693,154, 650433, 583 502, 631236, 026188,9191, 037, 559214,036'14 2'," £884 254,234190, 959565. 099 May 19 7, 285, 047 1,9703,187, 575438, 450 496, 225236,100182, 9981,046, 281211, 921135,1 249, 298183, 580557; 882 Deferred availability items: Apr. 28 619,975 64, 245 144, 61246, 314 61, 748 48, 681 25, 912 87, 316 29, 544 17, 31,288 27, 336 35, 884 May5. 609, 920 65, 558 140, 99f 49, 356 61, 428 50, 258 22, 669 ' 85, 901 29,423 15, 601 32, 716 24, 789 31, 226 May 12 660, 69" 71, 949 153, 475 52,103 67, 409 57, 502 23, 253 94,152 30, 605 15, 717 32, 854 26, 903 34, 775 May 19 705, 826 75,195 173, 479 54, 935 68, 023 57,189 26, 640 98, 204 31, 385 16, 545 36, 805 31, 442 35, 984 Capital paid in: Apr. 28 132,183 9,376 51, 274 12, 240 12, 853 4,858 4,31' 12, 588 3,810 2,897 3,993 3,862 10,115 May 5 132,193 9,376 51, 273 12, 241 12, 855 4,856 4,31' 12, 602 3,806 2, 898 3,993 3,864 10,112 May 12 132,193 9,376 51, 273 12, 241 12, 856 4,857 4,31' 12, 607 3,803 2,898 3,993 3,860 10,112 May 19 132,199 9,376 51, 271 12, 240 12, 856 4,856 4,31; 12, 613 3,811 2,898 3,994 3,861 10,110 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

582 FEDERAL RESERVE BULLETIN JUNE 1937 ASSETS AND LIABILITIES OF THE FEDERAL RESERVE BANKS, BY WEEKS—Continued [In thousands of dollars] Total B to os n - 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 - la A n t t - a Chicago L S ou t. is n M o e l a i i n p s - - K C s a i a t s n y - Dallas F c S i r s a a c n n o - LIABILITIES—continued Surplus (section 7): Apr. 28 145, 854 9,826 51, 474 13.362 14, 323 4, 869 5, 616 21, 504 4, 655 3,116 3, 613 3,851 9,645 May 5 145, 854 9, 826 51, 474 13, 362 14, 323 4, 869 5, 616 21, 504 4,655 3,116 3,613 3,851 9,645 May 12 145, 854 9,826 51, 474 13, 362 14, 323 4, 869 5, 616 21, 504 4,655 3,116 3,613 3,851 9,645 May 19 145, 854 9,826 51, 474 13, 362 14, 323 5,616 21, 504 4,655 3,116 3,613 3,851 9,645 Surplus (section 13b): Apr. 28 27, 490 2,874 7,744 4,325 1,007 3, 422 754 1, 416 545 1, 003 1,142 1,262 1,996 May 5 27, 490 2, 874 7,744 4,325 1,007 3,422 754 1,416 545 1,003 1,142 1,262 1,996 May 12 27, 490 2,874 7,744 4, 325 1,007 3, 422 754 1,416 545 1,003 1,142 1,262 1,996 May 19 27, 490 2,874 7,744 4,325 1,007 3,422 754 1,416 545 1,003 1,142 1,262 1,996 Reserve for contingencies: Apr. 28 36,142 1,570 9, 260 3,000 3,121 1,522 1, 690 1,197 2, 069 941 1,847 2,037 May 5 35, 993 1,570 9,110 3,000 3, 121 1,522 1,690 l,: 2,069 941 1,847 2,037 May 12 35,974 1, 570 9,091 3,000 3,121 1, 522 1, 690 7,888 l,: 2,069 941 1,847 2,037 May 19 35, 939 1,570 9,091 3,000 3,121 1,522 1,690 7,860 l,: 2,062 941 1,847 2,037 All other liabilities: Apr. 28 7, 965 424 1,800 1, 269 617 374 27/ 1,391 325 316 328 318 526 May 5 ._ 6, 833 446 1, 610 499 579 395 28/ 1, 394 314 311 263 255 480 May 12 7,410 427 1, 885 755 645 411 306 1,261 338 309 294 254 525 May 19 7,041 429 1,749 542 636 395 288 1,308 323 304 309 237 521 Total liabilities: Apr. 28 12, 445,145 17, 699 4, 384, 683 843, 993, 904 479, 420 397, 4227,174, 340 431, 747 292, 237 445, 646 30156,0 928,928 May 5 12, 431, 243 535 4,299,113 844, 1,023, 572 500, 710 403, 8619, 124,5, 359 431, 493 298, 758 45245.5 316; 903 937,937 May 12 12, 488, 935 192 4,320, 580 833, 1, 032, 966 503, 938 407, 20!7, 21,45, 751 433, 350280, 578 456, 530 318, 630 953, 774 May 19 12,523,821 043 4,376, 584 838, 1, 022, 492 502,098 403, 432,5159, 560 432, 085 301,813 455, 843216, 272 948, 629 Contingent liability on bills purchased for foreign correspondents: Apr. 28 784 5; 283 77 72 91 56 May 5 1,034 76 373 101 95 120 73 May 12 1, 532 112 553 150 141 178 109 May 19 1,532 112 553 150 141 178 109 'Commitments to make industrial advances: Apr. 28 17, 528 2.377 6,293 174 1,355 2,185 358 1,004 136 302 3,269 May 5 17, 454 2,335 16; 1, 350 2,182 354 1,001 134 302 3,255 May 12 17,183 2,333 6,044 166 1,340 2,177 351 1,001 134 302 3,261 May 19 17,311 2,314 6,004 166 1,352 2,160 350 1,201 134 302 3,252 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

583 JUNE 1937 FEDERAL RESERVE BULLETIN INDUSTRIAL ADVANCES AND COMMITMENTS UNDER SECTION 13b OF THE FEDERAL RESERVE ACT, JUNE 19, 1934, TO MAY 19, 1937 [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 Advireceived to date, sory Commit- Federal Expired, Financ- Date ( e la a s c t h W m e o d n n th e ) sday of net t o ( e w u e t i s t h co n a t d n o i d ti o w n d i s a t ) h te - Total a R d b e v a s a e n n r k c v e e s c R o m b e m a s e e n n m r k t v i s t e - A b p u c p t o r m o n v - o e t d d o r r r e a a p p w w a p n i i l d t i h b - , - y in p p t g a a u t r t i i t i n o i o c s n n i t s - i- Number Amount Number Number Amount sta o n u d t- ing sta o n u d t i - ng pleted » c e a tc n . t, sta o n u d t i - ng2 1936—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 June 24_. 8,158 331, 391 2,394 142,811 2,183 133, 343 30,487 24,454 9,381 61, 422 7,599 July 29... 8,197 331, 659 2,413 143, 978 2,198 134, 233 30,217 23, 711 8,429 64,342 7,534 Aug. 26_. 8,240 333,930 2,437 145, 939 2,218 135, 421 29,265 23, 355 9,168 66,304 7,329 Sept. 30.. 8,284 336,119 2,463 147,191 2,243 137,251 28,885 23, 307 8,566 69, 217 7,276 Oct. 28... 8,308 336, 763 2,477 148, 237 2,259 138, 731 27,038 22,790 8,544 72,915 7,444 Nov. 25.. 8,339 339,903 2,483 148, 317 2,266 138,938 26, 720 22,040 7,719 75,045 7,414 Dec. 30_. 8,379 342,699 2,500 149,204 2,280 139,829 25, 533 20,959 8,226 77,903 7,208 1937—Jan. 27... 8,398 342,999 2,506 149, 527 2,287 140,213 24, 781 20, 238 7,697 80, 500 6,997 Feb. 24 . 8,427 343, 904 2,517 149,711 2,297 140,515 24, 208 19, 523 7,709 82,163 6,912 Mar. 31 . 8,483 346,911 2,543 150, 561 2,323 141, 545 23,054 18,611 7,898 85, 215 6,767 Apr. 28.. 8,510 348, 342 2,563 152,724 2,336 144, 564 23,904 17, 528 9,045 86, 806 7,281 May 193 8,525 349,193 2,576 153, 700 2,350 145,025 23, 312 17,311 8,472 88, 754 7,176 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, which amounted to $11,352,447 on May 19, 1937. 3 May 26 figures not yet available. NOTE.—On May 19, 1937, there were 30 applications amounting to $2,614,500 under consideration by the Industrial Advisory Committees and the Federal Reserve banks. FEDERAL RESERVE NOTES—FEDERAL RESERVE AGENTS' ACCOUNTS, BY WEEKS [In thousands of dollars] Total B t o o s n - Y N o e r w k P p d h h e i i l l - a a- C la le n v d e- m Ri o c n h d - la A n t t - a c C a h g i o - L S ou t. is n M o e l a i i n p s - - K C s a i a t n s y - Dallas F c S i r s a a c n n o - Federal Reserve notes: Issued to F. R. bank by F. R. agent: Apr. 28 4, 494, 218353, 636 992, 010326, 877452, 283204, 041203, 542 992. 281187,275143,653170, 974 97, 12 369, 894 May 5 4, 496,178335, 6451, 004, 522 328, 785 452, 246 203, "9'"6,23 52103. 993,787187, 953145, 330171,649 98, 164370, 784 May 12 4,501,461 333,140 1,002,986330,312456,131205, 3c26 201,199 996, 697187,696144,851 71, 24198,797373,085 May 19 4, 498, 606335, 061 1',001,136331,176453,7'8 204,,821 199,172 999, 475187,498144, 909170, 72397, 844373, 013 Held by Federal Reserve bank: Apr. 28 317,228 34,198 102, 26' 14, 965 26, 597 10, 662 20, 795 28, 582 9,021 3, 95311,704 9, 039 45, 445 May 5 288, 456 15, 954 105,375 17, 490 25, 069 11,027 19, 261 23, 202 8,252 3, 93310,719 7, 519 40, 655 In ac M M tu a a a y y l 1 1 c 9 2 irculation:1 3 31 0 4 7 , , 1 8 5 . 9 1 3 2 1 7 9 , , 2 8 5 3 8 9 1 10 1 6 1 , , 9 9 9 3 8 5 1 19 6 , , 4 0 1 6 2 2 2 27 5 , , 4 1 7 5 7 ' 1 9 1 , ,0 9 7 9 6 7 1 1 8 8 , ,0 8 3 4 6 7 2 27 9 , , 1 3 0 3 1 3 9 9, , 2 3 5 5 1 6 4 4 . , 7 2 9 69 1 1 10 1 , , 7 9 8 8 2 3 9 7, , 1 6 0 5 3 2 4 42 3 , , 5 5 0 5 0 9 Apr. 28.. 4,176, 990319, 438 889, 743311,912 425i,, 686193,379182,747 963, 699178, 254139,700159, 270 88, 713 3J 24,,449 Maayy 5. 4, 207, 722319,691 899,147311,295427, 177192, 935184, 090 970, 585179, 701141, 39'160, 930 90, 645 3"130,1,:29 May 12 4,193,868313,301 890, 98S 313I,. 900430, 974195,329182, 352 969, 364178,340140, 582159,459 329, 585 May 19 4,184,425307, 803 894, 201312,1]4 4126, 301193,745181,136 970, 374178. 24r 140, 118159.740 90,192 330, 454 Collateral held by agent as security for notes issued to bank: Gold certificates on hand and due from U. S. Treasury: Apr. 28 4, 518,132371, 0001, 000, 000332, 000 457, 000 204, 000 180, 0001,000,000 174,632138,000174,000 98, 500 389, 000 May 5 4, 521,132356, 0001, 010, 000 332, 000 454, 000 204', 000 180, 0001,010, 000 174, 632139, 000 174,000 98, 500389,000 May 12 4, 536, 632356, 000, oio, ooo 3-3 2- ,- 000 460, 000 206, 000180,000 1, 010,000174,632146, 000174, 000 99,000 389, 000 May 19 4, 535, 632356,"0"0"0 1,010, 000332, 000 457, 000 206, 000 182, 000 1, 010, 000 174, 632 1461, 7040,0000 99,000 389,000 Eligible paper: Apr. 28 10, 848 887 4,497 1, 750 180 630 1,250 120 200 15 244 846 229 May 5 16,759 1,144 7,442 1, 252 265 520 264 371 920 1,133 May 12 16, 344 820 9,116 1,894 275 418 1, 459 145 199 305 179 891 643 May 19 15, 891 1,256 7,610 1,543 422 422 1,647 261 575 524 221 433 U. S. Government securities: Apr. 28 52, 000 30, 000 15, 000 7,000 May 5 52, 000 30, 000 15,000 7,000 May 12 45, 000 30, 000 15, 000 May 19 35, 000 20,000 15,000 Total collateral: Apr. 28 4, 580, 371, 1, 004, 497 333, 750 457,180 220044,, 630211, 250 1, 000,120 1,832145,015174, 244 346 389, 229 May 5 4, 589, 891357,1441, 017,442 333, 7 t, 252204,265 2111 868 1, 010, 520 189I,, 896146. 74,371 99,420 390,133 May 12 4, 597, 976356,8~2"0 1,019,116 333,894460,275 206,418 211,4591, 010,145 1891,,831146, 305 174:,, 1177!9 99, 891389, 643 May 19 4, 586, 523357, 2561,017, 610 333, 543 457, 422 206,422 203, 6471, 010, 261190, 207146, 524174,221 99,977389,433 1 Includes Federal Reserve notes held by other Federal Reserve banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

584 FEDERAL RESERVE BULLETIN JUNE 1937 RESERVE POSITION OF MEMBER BANKS, MEMBER BANK RESERVE BALANCES, APRIL, 1937 BY CLASSES OF BANKS [Averages of daily figures. In millions of dollars] [Averages of daily figures. In millions of dollars] Reserves with Central reserve Cl a a n s d se s d i o s f t r b ic a t n s ks m G d d r a e e o n - - s d s m N d d a e e e n - - t d p T o d i s e m - it e s Feder b a a l n R ks eserve b m a b A e n e m l k r l s - 1 N c e i w ty ban C k h s i- b s c a e R i r n e t v y k - e s b C a t o n r u y k n s - i posits posits1 Re- Ex- York cago quired Held cess Total reserves held: All member banks. _29, 922 24, 801 11,163 5,271 6, 824 1, 552 1936—February 5,808 2, 579 1, 745 998 March 5. 420 2,271 463 1, 708 978 Central reserve city banks: April 5,300 2,163 506 1, 675 956 New York 10,287 9, 540 747 2, 209 2, 739 530 May 5, 638 2,384 636 1,657 961 Chicago 2,182 1,927 439 461 563 101 June ._ 5,484 2,183 682 1,664 954 July 5, 861 2. 279 653 1,886 1,042 Reserve city banks: Aug. 1-15 6. 063 2. 5.02 572 1,899 1,090 Boston district 977 875 118 159 210 51 Aug. 16-312 6, 291 2, 503 580 2,005 1,204 New York district 197 160 140 35 38 2 September 6, 345 2, 462 619 2.046 1,218 Philadelphia district.. 1,174 977 240 184 295 111 October 6, 594 2,574 637 2,153 1,230 Cleveland district 1,458 1.191 711 246 306 60 November 6, 785 2, 695 651 2,185 1, 254 Richmond district 631 489 209 96 132 36 December 6, 665 2, 662 605 2,157 1,241 Atlanta district 583 432 163 84 96 12 1937—January 6, 716 2, 719 568 2,158 1,271 Chicago district 1,134 859 483 176 217 41 February 6, 747 2,812 546 2,128 1, 261 St. Louis district 721 567 170 108 132 24 Marchs 6, 704 2, 652 533 2, 203 1,315 Minneapolis district.._ 342 264 94 51 60 9 April 6,824 2, 739 563 2,201 1,321 Kansas City district. __ 938 666 160 125 161 36 Week ending (Friday): Dallas district 578 397 109 75 94 19 April 2 6, 658 2, 698 494 2,171 1, 295 San Ffancisco district. 1, 940 1,568 1,833 371 460 89 April 9 6,692 2,678 486 2,185 1,342 April 16 6.840 2,760 547 2, 209 1, 325 Total 10, 673 8,444 4, 429 1,710 2, 201 490 April 23. _ 6,888 2, 768 608 2,199 1, 313 April 30 6,922 2,755 640 2, 222 1,305 Country banks: Excess reserves: Boston district 793 624 574 107 142 35 1936—February 3,038 1, 360 226 885 567 New York district 1,237 984 1,372 193 277 85 March 2, 653 1,056 208 846 543 Philadelphia district._ 584 448 851 100 135 36 April 2,510 940 262 796 512 Cleveland district 583 420 621 84 128 44 May 2,800 1,134 377 778 511 Richmond district 474 332 329 58 83 25 June 2, 593 908 414 775 496 Atlanta district 473 311 205 49 74 25 July 2, 907 1,004 369 961 575 C hicago district 775 553 608 100 168 68 Aug. 1-15 3,105 1,226 290 970 619 St. Louis district 327 229 214 39 58 18 Aug. 16-312 1, 852 600 160 601 490 Minneapolis district.__ 290 195 273 38 59 20 September 1,852 535 195 624 498 Kansas City district... 431 268 156 41 71 30 October 2,043 639 205 696 502 Dallas district 466 298 91 41 73 32 November 2,219 751 221 724 523 San Francisco district. 346 228 253 41 55 14 December 2,046 697 175 675 498 1937—January 2, 093 767 147 662 518 Total 6,779 4,890 5,547 890 1,321 431 February 2,151 868 128 651 505 March3 1, 371 401 54 488 428 April 1,552 530 101 490 431 1 Gross demand deposits minus demand balances with domestic banks Week ending (Friday): (except private banks and American branches of foreign banks) and April 2 1,394 472 50 466 407 cash items in process of collection. April 9 1,433 460 40 481 452 NOTE.—See table at foot of page 596, for percentages of deposits re- April 16 1,566 548 83 500 435 quired to be held as reserves. April 23 1,609 566 135 485 423 April 30 1,643 557 164 507 415 1 Weekly figures of excess reserves of all member banks and of country banks are estimates. 2 Reserve requirements increased 50 per cent effective Aug. 16. 3 Reserve requirements increased 16%$ per cent effective Mar. 1. DEPOSITS OF MEMBER BANKS IN LARGER AND SMALLER CENTERS [Averages of daily figures. In millions of dollars] Member banks in larger centers Member banks in smaller centers All member banks (places over 15,000) (places under 15,000) Federal Reserve district Gross demand Time Gross demand Time Gross demand Time April March April March April March April March April March April March Boston 1,770 1,781 692 691 1,652 1,663 565 564 118 118 127 126 New York 11,721 11,954 2,259 2,288 i 1,164 1,159 ,034 1,031 270 273 479 478 Philadelphia. 1,757 1,738 1,091 1,073 1,538 1,519 654 638 220 219 437 435 Cleveland 2,041 2,040 1,332 1,330 1,813 1,813 ,056 1,057 228 227 276 273 Richmond 1,105 1,121 538 537 929 942 353 353 176 179 185 185 Atlanta 1,057 1,085 368 367 891 918 288 287 165 167 80 79 Chicago 4,091 4,180 1,530 1,527 1 1, 605 1,619 840 834 304 303 251 248 St. Louis 1,047 1,063 384 383 855 873 283 284 192 190 100 99 Minneapolis. . 632 636 367 367 452 455 180 181 181 181 187 187 Kansas City.. 1,370 1,378 316 316 1,052 1,059 201 201 318 319 115 115 Dallas 1,044 1,052 200 199 782 791 159 159 261 261 40 40 San Francisco. 2,286 2,258 2,085 2,090 2,153 2,124 1, 1,991 133 134 98 99 Total... 29,922 30,285 11,163 11,169 114, 887 14, 935 17, 601 7, 580 2,566 2,571 2.376 2, 365 i Excluding central reserve city banks, for which figures for latest month are shown in table above. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1937 FEDERAL RESERVE BULLETIN 585 KINDS OF MONEY IN CIRCULATION [Outside Treasury and Federal Reserve banks. In millions of dollars] End of month Total c c G e a r o t t i e l f d s i- d S o i l lv la e r r s c S c e i a r l t t v i e f e s i r - o T n f u r o e r 1 t a y e 8 s 9 s - 0 S s u i i a b lv r s y e id r - M co in in or U S n n t o a i t t t e e e s s d R F n e e o d se t e e r r s v a e l R F n b e e o d a 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 a - k s l 1936—April 5,886 103 34 886 1 309 132 249 3,726 56 391 May 5,953 102 34 914 1 312 133 265 3,760 54 378 June 6,241 101 35 955 1 316 135 278 4,002 52 366 July 6,162 100 35 958 1 318 136 274 3,937 50 352 August 6,227 99 36 986 1 321 137 278 3,978 48 342 September 6,267 98 37 998 1 326 138 278 4,011 47 332 Octobers- 6, 351 97 37 1,020 1 329 139 282 4,076 46 324 November. 6, 466 96 37 1,051 1 334 141 289 4,156 45 316 December. 6,543 95 38 1,057 1 337 142 289 4,233 44 307 1937—January __. 6, 349 94 37 1,012 1 329 140 276 4,118 42 300 February _ 6,399 92 37 1,022 1 329 140 288 4,155 41 294 March 6,377 91 37 1,022 1 333 141 287 4,139 40 287 April 6, 426 90 37 1, 039 1 335 142 291 4,171 40 281 Back figures. —See Annual Report for 1935 (table 38). PAPER CURRENCY, BY DENOMINATIONS, AND COIN IN CIRCULATION [Outside Treasury and Federal Reserve banks. In millions of dollars] Paper currency 2 Total End of month i c n u c la ir - - Coin $1 $2 $5 $10 $20 $50 and over as U e s d n o - r 2 ttion i Total $50 $100 $500 $1,000 $5,000 $10,000 1936—March 5, 877 472 439 32 804 1,378 1,361 1,399 362 641 125 247 17 April 5, 886 475 442 31 804 1, 379 1,360 1,404 360 643 126 249 7 19 May 5, 953 480 451 32 820 1.402 1,369 1,409 363 648 127 245 7 19 10 June 6, 241 486 463 33 850 1, 468 1,466 1,479 398 683 127 245 18 4 July 6,162 490 460 32 844 1,459 1,431 1,449 383 667 127 247 7 19 3 August 6, 227 494 471 32 863 1,482 1,436 1, 452 381 667 128 250 6 19 3 September.. 6, 267 501 477 33 868 1,488 1,437 1,467 383 673 130 253 6 21 4 October 6, 351 505 484 33 882 1,516 1,460 1,478 385 679 132 255 7 19 7 November.. 6, 466 513 492 33 900 1,548 1,486 1,501 390 690 132 258 7 23 7 December.. 6, 543 517 499 35 906 1, 563 1,501 1, 530 399 707 135 265 7 18 8 1937—January 6, 349 506 472 33 864 1,500 1,458 1, 525 393 702 135 269 8 18 9 February... 6,399 506 475 33 874 1,519 1,464 1,538 395 706 135 273 9 19 10 March 6,377 511 476 33 869 1,519 1,451 1,520 386 696 136 275 9 18 2 April 6, 426 514 482 33 883 1,542 1, 468 1, 507 381 687 137 277 9 17 3 1 Total of amounts of coin and paper currency shown by denominations less unassorted currency in Treasury and Federal Reserve banks. 2 Includes unassorted currency held in Treasury and Federal Reserve banks and $1,000,000 of currency of unknown denominations reported by the Treasury as destroyed. Back figures.—See Annual Report for 1935 (table 39). 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] Silver Fed- Year or month m E S e u n h r t i o s p p - t e o R E e f u r c o r e o m i p pt e s m s N h e i e n p t t - s rec N e e ip t ts dollars Sub- TnitoH eral Naand sid- Minor j nitea Re- tional End of month Total silver iary coin States serve bank 1932 567 83, 838 83, 271 bul- silver notes bank notes 1933 554 91,059 90, 505 lioni notes 1934 345 40, 587 40, 242 1935 10, 628 19, 966 9,338 1936 34, 774 26, 216 8,558 1936—April 2,500 1,230 330 138 347 57 398 1936—April 3,095 2,157 May 2,490 1,236 330 138 347 55 384 May 3,852 1,685 2,167 J J A u u u n ly g e ust 2 2 2 , , , 4 4 5 9 9 0 8 6 0 1 1 1 , , , 2 2 2 6 5 7 4 5 7 3 3 3 3 3 3 2 5 8 1 1 1 3 4 4 9 0 2 3 3 3 4 4 4 7 7 7 5 5 4 3 1 9 3 3 3 7 5 4 2 8 8 J J A u u u l n y g e ust 3,0 9 9 3 0 8 7 0 1 2 1 2 , , , 3 1 0 4 6 7 8 8 4 1,873 1 1, , 0 4 9 4 7 8 September _ 2,512 1,294 341 143 347 48 339 September. 3,949 1,131 2,818 October 2,515 1,303 346 145 347 47 329 October.... 2,013 5,422 3,409 N De o c v e e m m b b e e r r ._ - 2 2, , 5 5 3 2 2 1 1 1 , , 3 3 1 2 0 3 3 35 5 6 1 1 1 4 4 7 6 3 3 4 4 7 7 4 4 6 5 3 3 1 2 4 2 N D o ec v e e m m b b e e r r . . 5,960 1,5 7 3 4 6 5 4 7 , , 4 7 2 2 4 4 1937—January 2,532 1,332 356 148 347 44 305 1937—January- 2,092 2,197 105 February _. 2,536 1,343 356 149 347 42 298 February _ 4,279 3,265 1,014 M A a p r r c il h 2 2 , , 5 5 4 4 3 1 1 1 , , 3 3 5 6 5 5 3 3 5 5 7 7 1 1 4 5 9 0 3 3 4 4 7 7 4 4 0 2 2 2 8 9 4 1 A M p a r r i c l h..,.-. 1,4 9 3 6 4 8 3 3 , , 7 0 2 2 8 3 2 1 , ,5 7 8 60 9 i Includes silver held against silver certificates amounting to $1,243,000,- For description and back figures see BULLETIN for January 1932 000 on April 30, 1937 and $1,099,000,000 on April 30, 1936. pp. 7-9. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

586 FEDERAL RESERVE BULLETIN JUNE 1937' GOLD STOCK AND GOLD MOVEMENTS IN THE UNITED STATES ANALYSIS OF CHANGES IN MONETARY GOLD MOVEMENT OF GOLD TO AND FROM STOCK UNITED STATES1 [In millions of dollars] [In thousands of dollars] Gold stock at 1937 end of year Increase Net Year or month or month t g o i o n t l a d l im g N o p e l o d t rt re f e r l o e a a m r- se f O ac t t h o e r r s2 April March Ja A nu p a ri r l y- Inactive stock mark1 From or to— Total account 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 5,399 1,131 17, 222 France 596 76 12,673 1935—August.. 9,203 59.5 46.0 1.8 11.7 Germany September 9,368 165 0 156.7 1.0 7.3 Netherlands . 1,086 1, 371 October... _ 9,693 325.2 315.3 -1.9 11.8 Switzerland 14, 662 November 9,920 226.7 210.6 .6 15.5 Union of Soviet December 10,125 205.2 190.0 1.3 13.9 Socialist Republics 504 Year 10,125 1, 887. 2 1, 739. 0 .2 148.0 United Kingdom.. 175,172 7 121,483 33 445, 853 49> Canada 7,226 4,925 28, 677 1936—January. 10,182 57.2 45.6 -1.7 13.3 Central America ... 290 284 1, 120 February 10,167 -15.5 -16.6 -9.5 10.6 Mexico -. 1,980 6 3,248 6 16, 328 15 March 10,184 17 2 5.5 1.0 10.7 Argentina 3 6 April .... 10, 225 41.0 28.1 -.2 13.1 Chile 915 723 3,134 May 10, 402 176 7 170.0 -3.2 10.0 Colombia 4,261 3 4,264 June 10, 608 206.6 277.8 -24.8 -46.4 Ecuador 135 124 568 July 10,648 39.2 15.4 2.3 21.5 Peru . 150 250 882 August 10, 716 68.4 67.5 -11.9 12.9 Uruguay September. __ 10, 845 129.0 171.8 -28.8 -14.0 Venezuela 42 51 217 October... 11,045 199.7 218.8 -11.3 -7.9 Australia 2,388 3,467 10, 381 November 11,184 139.6 75.8 3.0 60.8 British India 4,857 4,017 21,980 December 11, 258 26.5 73.3 57.0 -.7 17.0 China and Hong Kong 75 265 785 Year 11,258 26.5 1,132. 5 1,116.6 -85.9 101.7 Dutch East Indies- Japan 9,978 5,696 15, 674 1937—January 11, 358 126.5 100.1 121.3 -48.3 27.1 Philippine Islands. 2,231 1,944 8,408 February 11,436 204.7 78.2 120.3 -8.0 -34.1 All other countries2. 126 5,598 7,151 March 11, 574 342.5 137 9 154. 3 -.4 -16.0 April 11,799 568. 0 225^6 215.8 7.2 2.5 Total 215, 825 13 154, 371 39 611,858 64 1 Gold released from earmark at Federal Reserve banks less gold 1 Figures represent customs valuations which, with some exceptions, placed under earmark (with allowance when necessary for changes in are at rate of $35 a fine ounce. gold earmarked abroad for account of Federal Reserve banks). 2 Includes all movements of unreported origin or destination. 2 Figures are derived from preceding columns and indicate net result of such factors as domestic production, movements into and out of Back figures.—See table p. 613, and Annual Report for 1935 (tables 34 nonmonetary use or unreported holdings, imports and exports that do and 35). not affect gold stock during the month or year, and increment resulting from reduction in weight of gold dollar. Back figures.—See Annual Report for 1935 (table 32). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

587 JUNE 1937 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 figuresf rom June 1934 to December 1935, see Federal Reserve Bulletin for December 1935, p. 883, and July 1936, p. 535. Figures for nonmember banks are for dates indicated or nearest thereto for which figures are available. NUMBER OF BANKS DEPOSITS, EXCLUSIVE OF INTERBANK DEPOSITS Member banks Non b m an e k m s ber fin millions of dollars] Member banks Nonmember banks Call date Total Other Total ti N on a a - l State M s b a a u v n t in u ks g al s b m n a b o e n e m n k r - s - Call date ba A n ll ks Total ti N on a a - l State M s b a a v u n i t n u k g s a s l b n e o O r n t m b h a e e n r m ks - 1932— June 30 19,046 6,980 6,145 835 594 11,472 1932—June 30. __ 41,963 24, 755 15,629 9,126 10,020 7,188 Sept. 30 _ 18,794 6,904 6,080 824 1594 11,296 Sept. 30._ 41,942 24, 903 15, 635 9,268 1 10,020 7,020 Dec. 31 18, 390 6,816 6,011 805 594 10,980 Dec. 31___ 41, 643 24, 803 16,101 8,702 10,022 6,818 1933—June 30 » 14, 519 5,606 4,897 709 576 8,337 1933—June 30«__ 37, 998 23,338 14, 772 8,566 9,713 4,946 Oct. 25 3 5,818 5,052 766 Oct. 25 3 23, 453 15,070 8,383 Dec. 30 15,011 6,011 5,154 857 579 8,421 Dec. 30 38, 505 23, 771 15, 386 8,385 9,708 5,026 1934—Mar. 5« 6,206 5,288 918 1934—Mar. 5 3 25, 293 16, 203 9,090 June 30 15, 835 6,375 5,417 958 578 8,882 June 30___ 41, 870 26,615 17,097 9,518 9,780 5,475 Oct. 17 3 6,433 5,461 972 Oct. 17 3 27,484 17. 693 9,791 Dec. 31 16,039 6,442 5,462 980 579 9,018 Dec. 31__. 44, 770 28,943 18, 519 10, 424 9,828 6,000 1935—Mar. 4. 16, 024 6,422 5,446 976 579 9,023 1935—Mar. 4 44, 455 28, 589 18, 502 10,087 9,837 6,029 June 29 15,994 6,410 5,425 985 571 9,013 June29_._ 45,766 29, 496 19,031 10,465 9,920 6,350 Nov. 1 15, 904 6,400 5,403 997 571 8,933 Nov. 1__ 47,522 31,072 20,128 10,944 9,936 6,513 Dec. 31 15,837 6,387 5,386 1,001 570 8,880 Dec. 31.__ 48, 964 32,159 20, 886 11, 273 9,963 6,842 1936— Mar. 4 15, 808 6,377 5,375 1,002 569 8,862 1936— Mar. 4.... 48, 771 31, 774 20, 605 11,169 9,972 7,025 June 30 15. 752 6,400 5,368 1,032 566 8,786 June 30... 51, 335 34,098 21, 986 12,112 10,060 7,176 Dec. 31 15, 628 6,376 5,325 1,051 565 8,687 Dec. 31 __ 53, 701 35, 893 23,107 12, 786 10,143 7,666 For footnotes see table below. For footnotes see table below. LOANS AND INVESTMENTS [In millions of dollars] All banks Member banks Nonmember banks Mutual savings banks Other nonmember banks Call date Total Loans I m nv e e n s t t s - Total Loans I m nv e e n s t t s - Total Loans I m nv e e n s t t s - Total Loans I m nv e e n s t t s - 1932—June 30 46,071 27,834 18,237 28,001 16, 587 11,414 10,316 6,130 4,186 7,755 5,117 2,637 Sept. 30 45, 852 26,985 18, 867 28,045 15,924 12,121 1 10,316 1 6,130 1 4,186 7,491 4,931 2,560 Dec. 31 44, 946 26, 063 18, 883 27, 469 15, 204 12, 265 10,182 6,079 4,103 7,295 4,780 2,515 1933—June 30 3 _ ._ 40,076 22, 203 17, 872 24,786 12, 858 11, 928 10,044 5,941 4,103 5,246 3,404 1,841 Oct. 25 3 24,953 13,059 11, 894 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 1834— 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 4,291 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 5,927 2,944 2,983 Is936— Mar. 4 . 46,157 20, 275 25, 882 30, 288 12. 099 18,189 9,795 5,202 4,592 6.074 2,974 3,100 June 3€ 48,458 20, 679 27, 778 32, 259 12, 542 19, 717 9,961 5,105 4, 856 6,238 3,032 3,206 Dec. 31 49, 524 21, 449 28, 075 33,000 13, 360 19, 640 10, 060 5, 027 5,034 6.464 3,062 3,402 1 Figures of preceding call carried forward. 1 Beginning June 30,1933, all figguures (other than for mutual savings banks) relate to licensed banks only, with some exceptions as to nonmember banks. * 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 1935 (tables 47-48). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

588 FEDERAL RESERVE BULLETIN JUNE 1937 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 t l s - Total C Y N k o b s T i i r o e u e d o t o r r t w y - e s - k i o se t t T o h i c e n u o e s r r s i- e l R o st a e a n a t l s e a b a c p o a R n i c o w n n c e e r g e - k p n t- s s t- ' O c c u a u u n s t n r e r h s e e - d e e d d - r- L ba o t n a o k n s s a a b c p A n e l a e c p c y e - t - i - s n B S i f l f ls i p C m c a o i p e a m r e l - r - k L C Y N e b o i r r o e t s a o r y w - n i k * n s Total Direc t t ion a F g s n u u te a l e l r y d - s O e t t i c e h u s e r r i- United abroad bought States TOTAL—ALL MEM- BER BANKS 1929—Dec. 31 35,934 23,193 803 7,685 3,191 11.515 714 212 80 291 1,660 9,784 3,863 5,921 1933—June 30 * 24, 786 11,337 165 3,752 2,372 192 4,857 330 291 25 87 788 11,928 6,887 5,041 1934—Dec. 31 28,150 10, 509 187 3,110 2,273 232 4,708 155 256 31 232 843 16,122 9,906 989 5,227 1935—Mar. 4 28,271 10,420 184 3,031 2,250 207 4,748 133 235 34 255 875 16,318 9,821 1,200 5,298 June 29 28,785 10,369 192 2,931 2,277 135 4,834 119 201 17 247 975 16,857 9,871 1,558 5,427 Dec. 31 29,985 10, 548 196 2,893 2,284 169 5,006 98 181 29 272 1,047 17,810 10, 501 1,768 5,541 1936—Mar. 4 30, 288 10, 460 211 2,832 2, 301 156 4,960 82 164 25 280 1,089 18,189 10, 564 1 880 5,745 June 30 32, 259 10,943 266 2,863 2,340 117 5, 355 81 144 18 278 1,079 19, 717 11, 721 1,950 6,045 Dec. 31 33,000 11, 628 266 2,785 2,405 131 6,041 85 161 18 324 1,144 19,640 11,639 1 906 6 095 1937—Mar. 31 32, 525 11, 862 258 2,816 2,440 128 6,220 99 170 22 386 1,159 18,826 10, 856 1,861 6,108 NEW YORK CITY » 1929—Dec. 31 _ 8,774 4,964 55 2,145 169 2,595 322 128 46 21 1,202 2,091 1,112 979 1933—June 30' 7,133 2,297 38 1,044 157 120 937 162 224 10 10 720 3,709 2,551 1,158 1934—Dec. 31 _ _ 7,761 2,202 54 820 139 164 1,024 63 210 16 6 662 4,602 3,246 278 1,078 1935—Mar. 4 7,783 2,198 56 805 139 145 1,054 52 203 19 4 678 4,628 3,200 298 1,131 June 29 8,303 2,146 58 783 138 82 1,085 48 183 7 5 930 4,983 3,462 348 1,174 Dec. 31 8,418 2,196 60 793 140 107 ,096 42 158 16 5 1,018 4,985 3,425 401 1,159 1936—Mar. 4 8,802 2,215 64 792 148 99 1,112 29 141 13 4 1,043 5,355 3,602 505 1,248 June 30 9,556 2,338 76 813 146 65 ,238 28 123 8 3 1,028 6,028 4,196 567 1,265 Dec. 31 9,280 2,567 78 753 144 65 1,527 42 136 10 5 1,095 5,425 3,739 470 1,217 1937—Mar. 31 9,101 2,676 74 790 142 69 1,600 51 119 6 4 1,105 5,140 3,356 473 1,311 CITY OF CHICAGO » 1929—Dec. 31 1.757 1,330 240 533 21 5 5 88 9 5 5 11 309 116 193 1933—June 30 8 L, 287 589 48 251 30 24 237 30 27 7 12 13 610 384 226 1934—Dec. 31 1,581 435 29 170 18 16 202 11 29 5 27 26 1,049 743 78 229 1935—Mar. 4 L, 704 462 30 171 17 12 232 8 14 3 21 28 1,167 877 78 212 June 29 1,592 458 33 163 15 12 236 7 4 1 14 1 1,107 766 87 254 Dec. 31 1,868 455 28 149 15 14 249 6 1 1 12 1 1,392 1,061 88 243 1936—Mar 4 L, 946 456 32 148 13 12 251 5 2 1 10 1 1,470 1,131 89 250 June 30 L951 513 59 145 14 10 284 5 3 2 10 1 1,419 1,014 92 312 Dec. 31 2,100 613 50 140 13 8 402 6 3 1 10 1 1,467 1,107 94 266 1937—Mar. 31 _-_ 1,868 629 52 155 14 2 407 4 2 1 12 1 1,220 853 94 273 RESERVE CITY BANKS 1929—Dec. 31 12,029 8,418 425 2,775 1.538 3,679 258 42 24 102 239 2,944 1,368 1,576 1933—June 30 2 8,492 4,258 63 1,340 L, 131 46 1,678 99 36 6 38 45 4,011 2,483 1,528 1934—Dec. 31 10,028 4,024 90 1,124 ,090 49 1,671 55 13 9 108 105 5,715 3,809 279 1,628 1935—Mar. 4 10, 036 3,974 83 1,090 ,077 48 1,677 48 12 9 122 106 5,766 3,724 376 1,666 June 29 __ 10,151 3,967 87 1,053 ,105 40 1,682 43 10 7 112 25 5,986 3,712 571 1,703 Dec. 31 10, 780 4,144 96 1,057 ,094 46 1,851 34 19 10 120 21 6,432 4,076 656 1,701 1936—Mar. 4 10, 655 4,071 101 1,027 ,096 43 1,805 31 18 9 120 30 6,375 3,958 656 1,761 June 30 11, 306 4,242 115 1,044 ,101 40 1,941 31 16 7 113 34 6,863 4,349 651 1,863 Dec. 31 11, 795 4,582 123 1,048 L, 124 56 2,231 23 17 5 131 36 7,000 4,426 697 1,877 1937—Mar. 31 11,611 4,618 114 1,039 L. 135 55 2,276 29 37 10 154 38 6,725 4,250 669 1,805 COUNTRY BANKS 1929—Dec. 31 > 13, 375 8,481 83 2,231 1,462 4 705 45 33 5 163 208 4,439 1,267 3,172 1933—June 30 8 7,873 4,194 15 1 117 1.055 3 2,005 38 4 1 27 10 3,598 1,469 2,129 1934—Dec. 31 8,780 3,849 14 996 1,026 2 1,810 27 5 2 92 50 4,756 2,108 355 2,293 1935—Mar. 4 .__ 8,749 3,786 16 966 1,018 2 1,785 25 6 2 109 64 4,757 2,020 448 2,289 June 29 8,739 3,798 13 932 1,020 2 1,831 21 3 2 116 18 4,780 1,931 553 2,296 Dec. 31 8,919 3,754 13 894 1,035 2 1,810 17 3 2 135 7 5,002 1,940 623 2,439 1936—Mar. 4 8,885 3,716 15 865 1,043 2 1,791 17 3 1 145 14 4,989 1,873 630 2,486 June 30 _ 9,446 3,850 17 861 1,078 2 1,891 16 2 1 152 16 5,407 2,163 640 2,605 Dec. 31 9,825 3,866 16 843 1,123 3 1,881 14 4 2 178 13 5,747 2,368 645 2,734 1937—Mar. 31 9,945 3,940 17 833 1,150 2 1,937 15 12 5 216 16 5,741 2,397 626 2,719 1 Loans (secured by stocks and bonds) to brokers and dealers in securities. 2 Beginning June 30, 1933, figures relate to licensed banks only, s Central reserve city banks. Back figures.—See Annual Report for 1935 (table 52). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

589 JUNE 1937 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 R e R a e r e r i n r v e e a d t v - k h - e l - e s s C va i a n u sh lt b a w m B a n d t n a i i e c o c t l s k e - h - - s s1 r o i p e t t f l e e p r i i e o o s n m o c c s n c o - r s - t l « - - b m D a I ti n n e o c s k t - - e s rb b a F e a n i o n g k r k n - s S U m G e t e n a r o e d n t v i n e - t - t - s f P u l u n i b c d - s j C l h c c o e a f e e e a i f t o n e r f c t r s f d i t d e s h k - i ' r - s s , s t I p p u v i n h c n o o a a i e o i d d l n r r p r r s a i t - - - s s - , - - , , j i d m u t e s D s a p t e a n e o - d d d s - - * b m D I a t n e i n o c s t - k - e s rb b a F e a n i o n g k r k n - s P s i t n a a o g v l s - s - - f P u l u n ic b d - s s t p I p u i v n h c n o o a a o e i i d d n r l p r r r s a i t - - - s s - , - - , , r B i o n o w g r s - credit» etc. etc. TOTAL—ALL MEM- BER BANKS 1929—Dec. 31 _ 2,374 558 2,168 3,896 3,517 544 1431,335 1,681 17, 526 16,647 95 154 122 595 12,267 879 1933—June 30 6 2,235 405 2,008 1,485 3,057 145 1,087 657 11,830 12,089 89 1 788 300 7,803 191 1934—Dec. 31 4,082 609 3,149 1,903 4,569 147 1,799 838 14,951 15, 686 134 7 452 294 9,020 13 1935—Mar. 4 „ 4,518 534 1,475 5,095 169 1,270 1,861 741 14,872 15,999 145 8 399 290 9,203 17 June 29 4,933 537 3,396 1,183 4,978 273 779 2,091 417 16,206 17, 530 136 5 307 285 9,462 Dec. 31 5,573 665 3,776 2,255 5,696 444 844 2,139 882 18,035 18,801 151 5 218 361 9,680 1936-Mar. 4 5,784 624 3,970 1,718 6,148 394 600 2,173 779 17,927 19,161 152 5 167 344 9,784 June 30_ 5,607 713 3, 944 2,147 5,986 465 1,037 2,320 789 19,322 20, 284 151 6 152 378 10,099 Dec. 31 6,572 697 4,066 2,533 6,402 432 882 2,329 881 20,970 21,647 153 6 104 296 10,429 15 1937—Mar. 31 6,613 662 3,445 1,974 5,752 458 415 2,564 677 20,085 21,352 153 6 97 269 10,639 18 NEW YORK CITY e 1929—Dec. 31 827 179 2,406 1,198 464 20 128 1,180 5,847 4,750 40 133 18 33 1,112 179 1933—June 30 e 846 101 874 1,255 127 332 96 461 4,676 4,358 22 1 110 4 671 8 1934—Dec. 31 1,576 103 1,069 1,798 126 792 229 540 5,370 5,069 1 7 56 4 591 1935—Mar. 4 1,856 86 810 2,047 147 572 190 500 5,329 5,209 1 7 44 4 595 June 29_ 1,935 133 447 1,983 248 369 354 149 5,924 5,979 4 27 6 567 Dec. 31_ 2,541 111 1,133 2,338 410 224 323 524 6,479 6,193 4 3 12 591 1936—Mar. 4 2,493 108 829 2,527 363 140 260 496 6,471 6,398 4 11 586 June 30 2,106 114 982 2,390 428 215 357 489 6,891 6,756 5 10 601 Dec 31 2, 658 133 1,087 2,493 393 225 285 457 7,274 6,929 4 13 679 12 1937—Mar. 31 2,719 123 853 2,171 419 129 314 354 7,237 7,051 5 14 758 1 CITY OF CHICAGO 8 1929—Dec. 31 169 133 158 310 8 42 1,041 957 19 7 2 58 332 1933-June 30 6 232 203 61 259 46 87 870 912 6 1 358 1934—Dec. 31 415 207 90 445 46 182 1,073 1,189 1 381 1935—Mar. 4 359 182 70 505 41 184 1,047 1,179 374 June 29 675 249 73 504 20 198 1,208 1,357 469 Dec. 31 511 209 135 522 98 208 1,301 1,401 413 1936—Mar. 4 480 195 96 594 81 217 1,243 1,390 407 June 30 749 195 147 635 102 221 1,444 1,546 444 Dec. 31 558 188 159 599 72 191 1,495 1, 554 449 1937—Mar. 31 482 93 114 596 96 203 1,001 1,128 440 RESERVE CITY BANK; 1929—Dec. 31__ 751 156 947 1,041 1,604 76 423 300 5,547 5,229 30 14 41 371 4,433 292 1933—June 30 6 705 122 1,002 401 1,315 312 349 108 3,708 3,764 59 388 208 2 941 16 1934—Dec. 31 1,268 207 1,543 537 1,984 620 585 169 4,919 5,136 117 1 186 206 3,494 1935—Mar. 4 1,386 197 1,690 432 2,179 505 643 132 4,854 5,197 128 167 211 3,611 June 29__ 1,403 213 1,607 471 2,145 299 674 140 5,314 5,656 119 118 203 3,670 Dec. 31 1,594 256 1,779 752 2,422 385 707 204 6,001 6,161 134 79 266 3,796 1936—Mar. 4 1,794 264 1,910 607 2,594 285 733 151 5,961 6,238 135 ' 72 251 3,853 June 30 1,763 289 1,907 763 2,551 513 733 152 6,419 6,541 135 65 288 3,960 Dec. 31 2,108 285 1,816 971 2,826 407 843 230 7,023 7,126 137 35 203 4,026 1937—Mar. 31 2,108 264 1.545 764 2,546 132 935 155 6,833 7,159 137 2 34 176 4,064 COUNTRY BANKS 1929—Dec. 31_ 627 321 291 405 742 169 5,091 5,711 6 61 133 6,390 367 1933—June 30 « 452 203 702 149 228 116 555 72 2,576 3,054 7 285 86 3,833 167 1934—Dec. 31 822 275 1,296 207 342 178 804 106 3,589 4,292 16 210 84 4,554 13 1935—Mar. 4 __. 916 246 1,427 163 364 152 845 90 3,642 4,414 17 188 75 4,623 14 June 29 920 236 1,406 192 347 90 865 104 3,761 4,538 16 162 76 4,756 Dec. 31. 927 305 1,676 235 415 137 901 127 4,254 5,047 16 136 83 4,879 1936—Mar. 4 1,017 268 1,757 187 433 93 965 106 4,252 5,136 17 95 82 4,938 June 30_ _ 989 322 1,727 256 410 207 1,008 121 4,567 5,440 16 87 80 5,094 6 Dec. 31___. 1,247 319 1,929 316 483 178 1,011 167 5,177 6,039 16 69 80 5,275 3 1937—Mar. 31____ 1,304 321 1,684 242 440 57 1,113 130 5,013 6,012 16 - 64 79 5,377 11 1 Prior to Dec. 31,1935, excludes balances with private banks to the extent that they were then 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. * Includes "Due to Federal Reserve banks (transit account)", known as "Due to Federal Reserve banks (deferred credits)" prior to Dec. 31,1935. * Demand deposits other than interbank and U. S. Government, less cash items reported as in process of collection and, prior to Dec. 31, 1935, ^ess cash items reported on hand but not in process of collection. » Beginning June 1933 figures relate to licensed banks only. 6 Central reserve city banks. Back figures.—See Annual Report for 1935 (table 53). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

590 FEDERAL RESERVE BULLETIN JUNE 1937 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 t n n d a s t s t l s - Total Y C N b k o s T r i e i o u e o d t o r r t - w y e s - k i o o c t n t T u h i e r o e s s i r e - s - e R lo s e t a a a n t l s e - c m O lo u t e t a s h o r t n e o s s r 2 - L ba o t n a o k n s s b p a c c m o a n c A a e o u n i c p e p c m a g d - e r e t l - h - s - r t t k L o C Y N e o i r o b e a t s y r r w n k o i s i n - Total U D m . i e r S e n . c t t i t G o o n o a b F g s n v l u u i e t g a e l r a l r e n y - - d - s O e t c t i h e u s e r r i- b s s w F e a e R e e r n r i r e a v t v d - k h l e e - s v C a i a n u s l h t d b a w o B a n t m n i c i a c t e k l e h - s s s- TOTAL—101 CITIES 1936—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 October 22, 566 7,403 218 2, 025 1,142 4,018 55 315 945 13, 848 9,310 1,255 3,283 5,276 399 2,385 November.. 22, 444 7,429 215 2,024 1,148 4,042 62 323 941 13, 689 9,232 1, 255 3,202 5,422 404 2,463 December.. 22, 760 7,607 227 2,034 1,154 4,192 64 338 1,021 13, 730 9,241 1,242 3,247 5,264 427 2,439 1937—January 22, 734 7,567 235 2,007 1,153 4,172 59 379 993 13, 736 9,263 1,230 3, 243 5, 292 401 2,307 February-_. 22, 600 7, 529 235 2,021 1,150 4,123 72 399 982 13, 618 9, 118 1,212 3,288 5, 326 387 2,252 March 22, 610 7,711 240 2.030 1,152 4,289 86 411 1,078 13,324 8, 802 1.206 3,316 5.205 359 1,998 April 22, 280 7,870 221 2, 046 1,155 4,448 78 396 1,055 12,881 8,447 1,181 3, 253 5, 340 346 1,967 Mar. 10 22, 801 7,662 242 2,015 1, 152 4, 253 81 407 1,110 13, 541 9,024 1,203 3,314 5,242 366 2,017 Mar. 17 22, 698 7, 735 234 2. 030 1,153 4,318 90 408 1,104 13,361 8,828 1,213 3, 320 5,327 350 2, 075 Mar. 24 22, 560 7, 753 243 2, 036 1,151 4,323 92 414 1,088 13,213 8, 696 1,205 3, 312 5,112 362 1,963 Mar. 31 22. 273 7,811 241 2. 051 1,157 4, 362 81 410 1,064 12. 907 8, 396 1,199 3, 312 5, 173 346 -1,879 Apr. 7 22, 356 7,841 229 2,049 1.156 4,407 78 405 1,049 12, 983 8,520 1,189 3.274 5,176 338 1, 924 Apr. 14 22, 293 7, 881 217 2,048 1,153 4, 463 74 395 1,044 12, 899 8, 457 1,183 3, 259 5, 381 353 2,018 Apr. 21 22, 268 7, 883 218 2,047 1,156 4, 462 76 392 1.051 12, 866 8,439 1,178 3, 249 5, 378 340 1,962 Apr. 28 22, 202 7, 876 222 2, 040 1,156 4, 458 84 393 1,075 12, 774 8, 370 1,175 3, 229 5, 425 354 1.964 May 5 22. 240 7, 908 226 2, 054 1.157 r4, 471 '•I 29 381 1,115 12,707 8, 334 1,165 3, 208 5, 307 337 1,797 May 12 22, 205 7, 937 226 2, 068 -1,161 r4, 482 122 382 1,090 •12, 674 8. 323 1, 164r3.187 5, 359 349 1,783 May 193 22, 177 1,162 118 12. 677 8,314 1,162 3, 201 5, 349 329 1,781 NEW YORK CITY 1936—April 8, 547 2,121 747 132 1,175 164 967 5.259 3, 511 551 1,197 1,968 79 October 8,687 2,326 705 131 1,412 123 906 5,308 3,761 461 1,086 2,461 74 November... 8,622 2,354 710 130 1,437 135 901 5,202 3,721 461 1,020 2, 575 78 December.. 8,750 2,429 712 130 1,512 140 978 5,169 3,666 451 1,052 2,509 86 1937—January 8,606 2,409 709 130 1,495 146 949 5.074 3,555 452 1,067 2,565 81 February... 8,543 2,399 731 129 1,465 136 943 5,022 3,455 453 1,114 2, 670 80 March 8, 651 2,483 733 128 1,548 133 ,037 4,943 3,319 452 1,172 2, 506 81 April 8,385 2,550 734 128 1,616 114 ,013 4,660 3,100 442 1,118 2, 562 74 Mar. 10 8,752 2,461 725 128 1,532 135 ,071 5, 035 3,421 447 1,167 2,500 78 Mar. 17 8, 691 2,505 735 128 1, 568 129 062 4,935 3, 309 451 1, 175 2,545 82 Mar. 24 8,597 2,497 736 128 1,561 132 048 4,859 3,226 457 1, 176 2,440 79 Mar. 31 8,524 2,523 739 127 1,584 126 ,019 4,805 3,171 456 1,178 2, 569 85 Apr. 7 8,449 2, 538 740 127 1, 598 120 ,008 4,734 3,148 448 1,138 2, 485 75 Apr. 14 8, 386 2,557 736 127 1,622 112 1,004 4, 668 3,106 442 1,120 2,622 77 Apr. 21 8, 350 2,554 731 129 1, 621 110 1,011 4,629 3, 076 439 1, 114 2, 579 74 Apr. 28 8, 353 2, 549 728 129 1,621 113 1,031 4, 609 3.072 439 1, 098 2, 562 71 May 5 8, 379 2, 558 732 129 1,623 104 1,073 4. 565 3.034 442 1,089 2. 430 71 May 12 8,322 2, 577 734 130 1,641 101 1,047 4, 517 3, 027 434 1,056 2, 480 May 19 3 8,318 129 4,531 3,022 434 1,075 2, 496 OUTSIDE NEW YORK CITY 1936—April 13,198 4,811 148 1,330 ,009 2, 324 187 8,125 5, 256 722 2,147 2,212 319 2,183 October 13, 879 5,077 140 1, 320 ,011 2,606 192 8,540 5,549 794 2,197 2,815 344 2,311 November 13, 822 5,075 138 1,314 ,018 2,605 188 8,487 5,511 794 2,182 2,847 346 2,385 December 14,010 5,178 152 1,322 ,024 2,680 198 8,561 5, 575 791 2,195 2,755 364 2,353 1937—January 14, 128 5,158 160 1,298 ,023 2,677 233 8,662 5,708 778 2,176 2,727 345 2,226 February 14,057 5,130 161 1,290 ,021 2, 658 263 8, 596 5, 663 759 2,174 2,656 334 2,172 March 13,959 5,228 166 1,297 ,024 2,741 278 8,381 5,483 754 2,144 2,699 310 1,917 April 13, 895 5,320 149 1, 312 ,027 2,832 282 8,221 5,347 739 2,135 2,778 293 1,893 Mar. 10 14, 049 5,201 166 1,290 ,024 2,721 272 8, 506 5, 603 756 2,147 2,742 316 1,939 Mar. 17 14, 007 5, 230 160 1. 295 ,025 2,750 279 8.426 5. 519 762 2,145 2,782 301 1,993 Mar. 24 13, 963 5, 256 171 1, 300 1,023 2, 762 282 8,354 5, 470 748 2,136 2, 672 313 1,884 Mar. 31 13, 749 5,288 168 1,3.12 1, 030 2,778 284 8,102 5, 225 743 2,134 2,604 297 '1, 794 Apr. 7 13, 907 5, 303 156 1, 309 1,029 2, 809 285 8,249 5,372 741 2,136 2, 691 288 'I, 849 Apr. 14 13, 907 5, 324 145 1,312 1, 026 2,841 2S3 8, 231 5, 351 741 2,139 2,759 299 1,941 Apr. 21 13,918 5, 329 145 1,316 1,027 2,841 282 8,237 5, 363 739 2,135 2,799 290 1,888 Apr. 28 13,849 5, 327 151 1,312 1,027 2. 837 280 8,165 5, 298 736 2.131 2. 863 296 1,893 May 5 13, 861 5, 350 152 1,322 1,028 r2, 848 277 8.142 5, 300 723 2,119 2, 877 282 1, 726 May 12 13. 883 5, 360 154 1, 334 1,031 '2.841 281 r$. 157 5. 296 730 r2.131 2,879 294 1.711 May 19 3 13, 859 1, 033 8,146 5, 292 728 2,120 2, 853 278 1,713 r Revised. 1 Loans (secured by stocks and bonds) to brokers and dealers in securities. 2 Includes reporting banks' own acceptances. 3 For new classification of loan items see page 592. For other figures and notes, see next page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

591 JUNE 1937 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 Date or month i r c n t e e e o i s p d o p l s l o n r e a r o o c s i t f c - - - a O s t s h e e ts r l a T i i s a t o s i b e t e i a s t l l s - D b o a t m I n ic n k e t s s e - rb F a b o n a r k n e k ig s n G U S m o n t v a e i e t t n e e r t n s d - c C h f e e i e t e c r c . d t k i- s, Other i j d t m u s e D s — a p t e e n o - a d d s d : - - m b D a I e n n o s k - t t i 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 - c t C a o a l u p n a i c - t - TOTAL—101 CITIES 1936—April . 526 1, 354 31,437 5, 351 356 576 14,932 13,982 133 4 4,971 822 3, 527 October ,487 1,298 33,411 5,950 467 793 446 16,193 15,152 130 4 5,070 1 840 3,517 November , 663 1,318 33, 714 6, 106 448 548 584 16, 441 15, 362 130 5 5,032 1 880 3,539 December ,787 1,370 34, 047 6,025 435 601 617 16, 714 15, 544 130 5 5,045 11 909 3,555 1937—January ,548 1,349 33, 631 5,953 413 611 525 16, 539 15,516 132 3 5,052 3 837 3,563 February ,573 1,360 33, 498 5, 854 410 409 573 16, 571 15, 572 134 4 5,094 1 880 3, 568 March , 602 1,356 33,130 5,546 428 369 573 16,459 15, 429 133 5 5,142 3 894 3. 578 April ., 503 1,338 32, 774 5,424 473 312 460 16, 325 15, 283 120 6 5,145 3 925 3,581 1937—Mar. 10 1,600 1,390 33,416 5,608 415 379 634 16,615 15, 649 135 4 5,147 1 903 3, 575 Mar. 17 1,659 1,333 33, 442 5,656 429 419 600 16, 600 15, 541 131 4 5,128 1 898 3, 576 Mar. 24 1,547 1.338 32, 882 5,453 432 355 573 16,310 15,336 133 5 5,129 4 908 3,580 Mar. 31 1.666 1,351 32, 688 5,332 447 353 525 16, 261 15,120 130 6 5,144 6 903 3,581 Apr. 7 1.406 1,352 32, 552 5,435 432 353 482 16,084 15,160 124 6 5,144 2 910 3,580 Apr. 14 1, 611 1, 333 32,989 5.526 476 351 443 16,417 15, 249 121 6 5,133 5 930 3, 581 Apr. 21 1.487 1, 323 32, 758 5,414 484 272 458 16, 362 15, 333 117 6 5,146 1 915 3, 583 Apr. 28 1,509 1, 345 32, 799 5, 321 501 272 458 16,439 15,388 116 6 5,158 3 944 3,581 May 5 1,347 1,334 32, 362 5,116 515 233 423 16,273 15,349 108 6 5,149 38 909 3,592 May 12 1, 568 1,331 32, 595 5,075 533 207 448 16, 496 15, 376 107 7 5, 201 16 912 3, 593 May 19 1, 448 1,342 32, 426 5,010 520 182 449 16, 424 15,425 105 7 5, 205 24 909 3,591 NEW YORK CITY 1936—April 789 478 11,912 2,292 325 197 390 6. 366 5,968 3 547 5 321 1,466 October 644 462 12, 383 2,444 427 172 277 6,667 6,301 4 610 351 1,431 November 795 468 12, 596 2,529 408 102 402 6, 756 6,363 4 583 1 369 1,442 December 878 492 12, 778 2,468 397 155 415 6,893 6,430 4 613 10 372 1,451 1937—January 714 493 12,515 2,421 378 181 336 6,783 6,404 3 601 2 343 1,467 February 767 490 12, 603 2, 392 375 138 398 6, 825 6, 457 3 631 367 1,474 March 774 485 12. 546 2,233 392 131 388 6,878 6,492 3 680 369 1,472 April 649 477 12, 200 2,149 436 105 279 6,689 6,319 4 671 395 1,472 1937—Mar. 10 838 508 12,726 2,280 378 134 459 6, 950 6,571 3 674 377 1,471 Mar. 17 794 470 12, 631 2,289 395 136 410 6,887 6,503 3 671 371 1,469 Mar. 24 744 477 12, 386 2,195 397 124 402 6. 749 6,407 4 672 372 1,471 Mar. 31 800 482 12, 509 2,107 410 124 327 6, 998 6,525 4 695 372 1,472 Apr. 7 630 493 12,182 2,158 395 124 297 6, 675 6,342 4 673 383 1,473 Apr. 14 675 469 12. 283 2,197 439 124 269 6,706 6,300 4 671 401 1,472 Apr. 21 611 467 12,131 2,138 448 86 266 6, 656 6,311 4 671 390 1,472 Apr. 28 680 478 12,202 2,101 461 86 284 6. 720 6, 324 4 671 405 1,470 May 5 568 477 11,980 1,983 477 66 255 6, 646 6,333 4 658 29 387 1.475 May 12 661 481 12.071 1,936 496 53 283 6, 716 6. 338 6 704 8 393 1,476 May 19 630 488 12,051 1,916 483 41 282 6, 740 6,392 6 704 15 389 1,475 OUTSIDE NEW YORK CITY 1936—April 737 876 19, 525 3,059 561 186 8, 566 8,014 133 1 4,424 2 501 2,061 October 843 836 21, 028 3, 506 621 169 9,526 8,851 130 4,460 1 489 2,086 November 868 850 21,118 3, 577 446 182 9, 685 8, 999 130 1 4,449 511 2,097 December 909 878 21, 269 3,557 446 202 9, 821 9,114 130 1 4,432 1 537 2,104 1937—January 834 856 21, 116 3,532 430 189 9, 756 9,112 132 4,451 1 494 2,096 February 806 870 20, 895 3, 462 271 175 9. 746 9, 115 134 1 4, 463 1 513 2,094 March./. 828 871 20,584 3,313 238 185 9. 581 8,937 133 2 4, 462 3 525 2,106 April 854 861 20, 574 3,275 207 181 9, 636 8,964 120 2 4,474 3 530 2,109 1937—Mar. 10 762 882 20, 690 3, 328 245 175 9, 665 9,078 135 1 4,473 1 526 2,104 Mar. 17 865 863 20,811 3, 367 283 190 9,713 9. 038 131 1 4, 457 1 527 2,107 Mar. 24 803 861 20, 496 3,258 231 171 9. 561 8. 929 133 1 4,457 4 536 2,109 Mar. 31 866 '869 20, 179 3, 225 229 198 9, 263 8. 595 130 2 4, 449 6 531 2,109 Apr. 7 776 '859 20, 370 3, 277 229 185 9,409 8,818 124 2 4,471 2 527 2,107 Apr. 14 936 864 20, 706 3,329 227 174 9,711 8. 949 121 2 4.462 5 529 2,109 Apr. 21 876 856 20, 627 3,276 186 192 9, 706 9.022 117 9 4, 475 1 525 2,111 A M M M p a a a r y y y . 2 5 1 1 8 9 2 8 8 7 9 2 1 7 0 9 8 9 7 8 8 8 8 5 5 6 5 4 7 7 0 2 2 2 2 0 0 0 0 , , , , 3 3 5 5 8 7 9 2 2 5 7 4 3 3 3 3 , , , , 2 0 1 1 2 9 3 3 0 4 3 9 1 1 1 1 6 4 8 5 7 1 6 4 1 1 1 1 7 6 6 6 4 8 5 7 9 9 9 9 , . , , 7 7 6 6 8 1 2 8 0 9 7 4 9 9 9 9 , , , , 0 0 0 0 3 6 1 3 8 4 6 3 1 1 1 1 1 0 0 0 6 8 7 5 9 2 1 1 4 4 4 4 , , , , 4 4 4 5 9 8 9 0 1 7 7 1 3 9 8 9 5 5 5 5 3 2 2 1 9 2 0 9 2 2 2 2 , , , , 1 1 1 1 1 1 1 1 7 1 7 6 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

592 FEDERAL RESERVE BULLETIN JiWE 1937 REPORTING MEMBER BANKS IN 101 LEADING CITIES—Continued ASSETS AND LIABILITIES BY DISTRICTS AND FOR NEW YORK CITY AND CHICAGO fin millions of dollars] Federal Reserve District City Total B to os n - Y N o ew rk P p d h h e i l i l - a a- C a le n v d e- m Ri o c n h d - At t l a an- Uhica- L S ou t. is n M o e i l a n i p s - - K C s a i a n t s - y Dallas F c S i r s a a c n n o - Y N o ew rk | Chica- ASSETS Loans and investments, total: Apr. 28 22. 202 1,279 9, 253 1.169 1.890 633 562 3,017 673 388 691 482 2.165 8, 353 1, 959 Mayo 22, 240 1,288 9. 271 1,181 1,884 632 561 3,041 666 383 691 481 2,161 8,379 1,985 May 12 22, 205 1,292 9,212 1,190 1.884 626 559 3, 051 669 383 690 482 2,167 8, 322 1,994 May 19 22,177 1,295 9,207 1, 187 1,886 626 3,051 663 381 690 481 2.154 8. 318 1,995 Loans to brokers and dealers in New York:l Apr. 28 1.075 1,043 1,031 May 5 1,115 1,082 11: 1, 073 May 12 1,090 1, 057 1,047 Loans to brokers and dealers outside of New York:1 Apr. 28 222 5 2 42 May 5 __ 226 6 T 42 May 12 226 6 2 41 Loans on securities to others1 (except banks): Apr. 28 2, 040 141 853 135 219 209 71 29 49 | 168 728 149 May5_._ 2, 054 141 857 136 220 212 73 29 50 ! 168 732 150 May 12 2,068 143 860 136 219 216 73 29 49 I 175 734 155 Acceptances and commercial paper bought:1 Apr. 28.1 393 133 16 43 11 11 30 113 May 5 . 381 123 16 42 11 10 20 ! 30 104 May 12 382 120 17 43 11 9 19 | 31 101 Loans on real estate: Apr. 28 1, 156 240 178 76 45 6 19 | 371 129 15 May 5 1. 157 240 179 77 45 6 19 ! 371 129 14 May 12 1, 161 240 '•181 79 45 6 371 130 14 Loans to banks: Apr. 28 84 6 51 4 1 10 5 ! 4 May5 __ '129 5 79 '5 2 4 17 8 2 I j 4 13 May 12 122 5 80 4 2 4 7 9 2 1 ! 5 3 Other loans:1 Apr. 28 4, 458 329 1, 788 203 259 128 179 576 150 119 157 145 425 1,621 40S May 5 . '•4,471 337 1. 792 202 1-260 127 180 576 149 117 158 145 428 1, 623 410 May 12._ '4. 482 '330 1,811 205 '260 125 179 578 150 117 159 146 422 1,641 414 Commercial, industrial, and agricultural loans:1 Total: May 12 4, 183 274 1, 725 200 269 105 148 576 173 152 130 351 1, 608 423 May 19 '4, 188 273 1,735 '199 265 106 146 '578 171 152 126 356 1, 613 423 On securities:2 May 19 245 '43 50 232 33 Otherwise secured and unsecured:2 May 19 r3, 624 246 1,490 156 '224 131 '528 133 312 1,381 390 Open market paper:1 May 12 503 119 178 8 ! 159 29 May 19 '497 119 175 8 i 157 28 Loans to brokers and dealers:1 May 12 1,334 1, 145 1. 133 42 May 19 1,323 1,137 I. 127 42 Other loans for purchasing or carrying securities:1 May 12 740 366 9 ! 284 81 May 19 722 r358 9 i 277 81 Real estate loans: May 12 1, 161 240 '181 371 130 14 May 19 1,162 239 181 372 129 14 Loans to banks: May 12 '122 80 3- May 19 118 76 3 Other loans:1 Total: May 12 1,488 130 508 99 171 110 58 171 411 58 May 19 1, 490 133 '503 102 173 108 56 164 408 50 On securities:2 May 19 '718 274 '28 23 242 23 Otherwise secured and unsecured-2 May 19 '772 59 40 62 33 r Revised. 1 A new classification of loans was put into effect on May 12, but the figures were reported on both the old and the new basis on that date. The figures on the new basis are shown in this table following those reported on the old basis. For explanation see pages 530-531 of this BULLETINS and pages 440-441 of May BULLETIN. 2 Not reported separately on May 12. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Jl-NE 1937 FEDERAL RESERVE BULLETIN 593 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 Total B to os n - Y N o ew rk P p h d h i e 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- 'h g i o ca- Lo S u t. is n M o e i l a n i p - s - K C s a i a n t s - y Dallas ! Fran- Y Ne o w r - k Ch g i o ca- ASSETS—continued U. S. Government direct obligations: Apr. 28 8.370 428 3,310 335 268 179 1, 459 224 161 256 186 700 3.072 935 May 5 8,334 427 3, 271 349 269 176 1, 467 218 161 257 186 696 3, 034 943 May 12 8,323 427 3, 260 349 854 268 175 1,471 219 161 258 187 694 3,027 953 May 19 8,314 428 3, 255 347 856 268 174 1, 474 219 161 255 187 690 3, 022 956 Obligations fully guaranteed by U. S. Government: 'Apr. 28 1,175 21 479 91 59 167 56 46 131 439 95 May 5 1,165 22 481 89 59 167 51 45 131 442 95 May 12 1,164 22 473 92 58 173 51 44 135 434 95 May 19 1,162 22 473 92 58 172 49 46 134 434 95 Other securities: Apr. 28 3, 229 141 1,283 291 276 427 106 137 313 1.098 May 5 3, 208 140 1, 270 291 273 433 105 136 311 1,089 295 May 12 % 187 r150 1.237 293 273 435 105 136 312 1, 056 296 May 19 3, 201 151 1,256 294 273 434 104 137 307 1,075 297 Reserve with Federal Reserve bank: Apr. 28 5, 425 260 2, 668 310 321 126 96 862 138 163 104 311 2, 562 657 May 5 5, 307 254 2, 567 301 337 138 105 811 136 165 110 311 2, 430 595 May 12 5, 359 251 2, 603 286 341 135 107 817 138 169 113 320 2, 480 599 May 19 5, 349 244 2, 619 291 334 136 105 821 136 161 106 321 2, 496 609 Cash in vault: Apr. 28_. 354 69 74 17 38 20 12 64 11 13 11 19 58 31 Maayy 5I_. 337 69 71 16 38 18 11 61 10 11 9 18 30 May 12 349 65 71 17 39 20 12 65 11 13 11 19 31 May 19 329 59 67 16 39 18 11 61 11 12 10 19 29 Balances with domestic banks: Apr. 28 1, 964 110 191 147 186 136 121 350 210 160 196 71 167 May 5 1,797 102 197 137 164 126 104 311 183 149 176 71 162 May 12 1,783 99 152 130 166 136 104 316 196 154 182 72 158 May 19 1,781 90 155 135 172 128 100 311 199 157 186 68 157 Other assets: Apr. 28 1, 345 88 555 93 107 42 39 S9 23 28 231 478 66 May 5 1, 334 87 555 90 107 41 39 97 23 29 226 477 64 May 12 1,331 86 552 90 106 43 39 96 23 29 226 481 64 May 19 1,342 88 559 90 108 41 39 96 23 29 229 488 53 LIABILITIES Demand deposits—adjusted: Apr. 28 15, 388 1,018 6, 920 891 1. 104 428 334 2, 261 409 227 482 389 925 6, 324 1, 498 May 5 15, 349 1, 014 6, 959 886 1,098 430 333 2, 225 401 234 471 386 912 6. 333 1,488 May 12 15, 376 1,012 6, 898 876 1.106 435 336 2, 238 408 250 492 395 930 6. 338 1,485 May 19 15, 425 995 6, 956 892 1,110 430 335 2, 251 396 253 487 392 928 6, 392 1,505 Time deposits: Apr. 28 5, 158 277 1.071 283 716 198 179 853 181 122 146 671 451 May 5 5,149 278 1, 056 284 717 199 178 852 182 121 146 1,017 658 448 May 12 5, 201 278 1, 102 284 716 200 179 854 182 121 146 1,019 704 449 May 19 5, 205 278 1, 104 284 720 200 179 855 182 121 146 704 449 V. S. Government deposits: Apr. 28 272 2 92 14 13 96 2 2 4 86 May 5 233 2 71 11 10 91 2 2 4 66 84 May 12 207 9 9 87 3 53 81 May 19 . 182 45 84 3 41 79 Interbank deposits, domestic: Apr. 28 5,437 231 2, 168 290 345 204 212 792 256 124 375 179 261 2, 101 581 May 5 5, 224 229 2, 050 287 340 201 204 763 243 118 359 177 253 1.983 553 May 12 5, 182 226 2, 002 287 340 202 237 116 357 178 264 1,936 568 May 19 5, 115 221 280 337 196 196 235 111 356 176 264 1, 916 558 Interbank deposits, foreign: Apr. 28 .... 507 467 1 1 1 15 465 May 5 521 483 1 1 1 14 481 May 12 540 504 1 1 14 502 May 19 527 490 1 1 14 489 Borrowings: Apr. 28 3 May 5 38 31 29 May 12 16 9 1 8 May 19 24 17 1 15 Other liabilities: Apr. 28 944 33 418 26 21 30 7 358 405 22 May 5 909 31 400 25 21 28 7 349 387 21 May 12 912 31 407 25 21 28 7 343 393 21 May 19 909 34 403 25 21 26 7 345 389 20 Capital accounts: Apr. 28 3,581 235 1,605 227 342 353 79 328 1,470 234 May 5 3, 592 236 1,611 228 343 89 355 79 327 1,475 236 May 12 3,593 236 1, 611 228 343 356 80 327 1,476 236 May 19 3,591 236 1, 610 227 343 356 80 327 1,475 236 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

594 FEDERAL RESERVE BULLETIN JUNE 193? BANK SUSPENSIONS1 POSTAL SAVINGS SYSTEM [In millions of dollars] Member Non-member banks banks Total, Assets all banks ti N on a- al State su I r n e - d2 in N su o r t ed U. S. Government Depos- securities itors' Cash Cash, Num 1 1 1 1 1 9 9 9 9 b 9 3 3 3 3 3 e 7 6 3 5 4 r , , o J M f a n b a a r - . n A k 1 p s 6 r - i s D l u .. e s . c p . e n 3 d 1 e . d .. : . 1 4 5 3 7 1 4 4 7 9 7 9 4 1 1 6 2 4 1 2 0 8 3 1 4 6 4 8 8 3 4 End of month a b n a c l e - s1 Total b i p t n a o o n d r s y k e i s - Total t o r i D g e b o a c i l n - - i t s - G t o t i a g e u b o n e a a l n - d - i r s - - f s e u e r t n r e c v - d .* e s, Deposits of suspended banks (in thousands of dollars):3 1930—June.. 175 185 148 26 26 11 1933, Mar. 16-Dec. 31... 145, 710 17, 322 3,527 124, 861 1931—June.. 347 356 307 27 27 22 1934 36,937 40 1,912 34, 985 1932—June. 785 801 682 71 71 48 1935 10,099 5,313 3,847 939 1933—June. 1,187 1,207 977 131 131 99 1936 11,306 507 10, 207 592 1934—June. 1,198 1,225 695 453 418 35 77 1937 Jan -April 3,064 2,641 423 1935—June.. 1,205 1,236 385 777 630 147 74 1935—D ecember. _. 1,201 1,237 287 853 706 147 97 o b F a b r f a a o 3 e 2 i n n r R t D F k k h a s e s e s e s t e p a d p a p r o b t e o r e i l f a r e s a s s a n t c d e i b i l t k e n c a s a d d s s t t s o s e . e e o f s i p d n l f m i o o c o l s l e f e a n i i n m t t q s t s t u u i e b h e n s r i e e d s d p r u s l a e b e a b r t n e a t a i a s e o n n n i A s n o k c k t e n s n s o d n , r s b a a u u a n e t a a r n s c d e l p d a a c i m e R v e n n d a i s e e v d e i u p l e p e o r a o r d o e p b s r ; d s e t l h i e r t i f n d a s p o a o o t r t i o e n v a t s f 1 - f e i 9 m t m n n e 3 J r o o e e 5 a m t n n o t ( - i h u f b t i n a n e a e t c b h s r r l l y u e b u e b r a d r a e 1 6 n e e d n , 9 p k k 1 ) o i n . 9 s n n r o 3 o g t s 4 n n o u . - - h f s l m i p o c c e l l e e o i n m n d s d s a i b n e e y e d d g . r 1936— J A A S J M M F J u u e e p u a n a a l p b n r g y y r e i t u r u c l e u a h s m r t a y r b y e . r _ _ .. . . 1 1 1 1 1 1 1 1 1 , , , , , , , , , 2 2 2 2 2 2 2 2 2 1 4 1 5 1 4 0 1 3 4 9 6 1 4 4 8 5 2 1 1 1 1 1 1 1 1 1 , , , , , , , , , 2 2 2 2 2 2 2 2 2 4 8 8 7 6 4 4 5 4 8 5 3 9 5 1 8 1 8 2 2 2 2 2 1 1 2 1 1 1 0 2 6 4 6 2 7 1 6 3 1 6 8 2 5 2 9 9 9 8 9 9 9 9 8 4 7 8 7 2 6 7 7 0 0 2 2 6 5 7 2 6 2 8 8 8 8 7 7 7 7 7 1 0 0 5 7 0 0 3 1 5 5 5 9 3 9 0 6 0 1 1 1 1 1 1 1 1 1 6 6 6 6 6 6 6 6 6 6 7 7 6 7 7 7 7 8 1 1 1 1 1 1 1 4 4 9 2 1 3 9 0 4 1 5 7 8 7 5 5 7 7 Back figures.—See Annual Report for 1935 (table 69). October 1,255 1,290 158 ,011 844 167 121 November.. 1,257 1,293 145 ,029 862 167 119 December - 1,260 1. 296 145 ,058 891 167 93 1937—January..... 1, 266 1)303 136 .060 893 167 107 BANK DEBITS February... I, 270 March , 271 [Debits to individual accounts. Amounts in millions of dollars] April . 269 1937 1936 p Preliminary. No. of 1 Outstanding principal, represented by certificates of deposit. Does Centers not include accrued interest nor outstanding savings stamps. Apr. Mar. Apr. 2 Includes working cash with postmasters, 5-percent reserve fund and miscellaneous working funds with the Treasurer of the United States, New York City 1 17, 082 20, 398 17,285 accrued interest on bond investments, and accounts due from late post- 140 20,051 21, 605 17, 497 masters. Outside New York City- Back figures.—Bee BULLETIN for August 1935, p. 502, Federal Reserve districts: 2,030 2, 226 1,928 Boston 17,800 21,131 17, 903 New York 1,745 2,096 1, 456 Philadelphia 2,155 2,148 1,879 Cleveland 728 763 604 Richmond 918 972 717 Atlanta 5,270 6,011 4,673 Chicago 995 1,037 822 St. Louis 665 616 600 Minneapolis 1.158 1,174 9S7 Kansas City '719 733 568 Dallas 2,950 3,096 2,645 San Francisco Total . 141 37,133 42, 003 34, 783 Back figures.—See Annual Report for 1935 (table 68). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

595 JUNE 1937 FEDERAL RESERVE BULLETIN COMMERCIAL PAPER, ACCEPTANCES, AND BROKERS' BALANCES COMMERCIAL PAPER AND BANKERS' ACCEPTANCES OUTSTANDING [In millions of dollars] Dollar acceptsnces outstanding Com- By holders By classes mer- End of month p c a i p a e l r Total Held by accepting Based sto B re a d s e i d n o o n r s g h o i o p d p s ed out- out- banks on Based between points in stand- stand- Held on ex- Dollar ing1 ing by ports ports ex- Total O bi w ll n s bo B u il g ls ht others2 U in . t S o . U fr . o m S. change U. S. F c o t o r r i u e e i n s g - n 1936—March 180 359 321 150 171 38 113 91 2 66 87 April. . . 174 344 310 143 167 34 111 86 2 57 89 Mav 184 331 297 155 142 34 110 81 1 55 82 June 169 316 276 129 147 40 107 74 2 49 85 July 188 316 278 131 147 37 105 68 2 57 84 August 205 308 279 140 139 29 104 63 2 60 79 September _ 197 315 276 139 137 39 107 64 2 66 76 October 199 330 296 150 147 34 110 67 2 75 77 November _ .._ 191 349 309 157 152 40 112 1 83 76 December 215 373 315 151 164 57 126 86 2 83 76 1937—January 244 387 325 154 171 62 141 83 2 84 77 February. __ ... 268 401 340 160 180 61 158 85 2 79 77 March 290 396 316 150 166 80 160 84 2 76 76 April. . _ 285 395 318 147 171 167 83 1 68 76 1 As reported by dealers; includes some finance company paper sold in open market. 2 For the first time since April 1935 Federal Reserve banks held dollar acceptances for own account amounting to $265,000 on March 31, 1937, and $669,000 on April 30 and for account of foreign correspondents $784,000 on April 30. Back figures.—See Annual Report for 1935 (tables 66 and 67). CUSTOMERS' DEBIT BALANCES, MONEY BORROWED, AND PRINCIPAL RELATED ITEMS OF STOCK EXCHANGE FIRMS CARRYING MARGIN ACCOUNTS [Member firms of New York Stock Exchange. Ledger balances in millions of dollars] Debit balances Credit balances Customers' credit balances* Other credit balances Debit Debit End of month Customers' balances in balances in Cash on debit partners' firm hand Money In In balances investment investment and in bor- partners' firm In (net)i an a d c c t o r u a n d t i s ng an a d c c t o r u a n d t i s ng banks rowed 2 Free O (n th et e ) r m in en v t e s a t n - d m i e n n v t e a s n t- d a c c a c p o i u t n al ts trading trading (net) accounts accounts 1935—September 1,098 65 119 182 771 257 89 23 12 396 December _.. _ _ 1,258 75 135 179 930 286 79 24 10 410 1936—March 1,351 67 168 181 995 303 89 23 15 429 April 1,295 65 173 268 1,033 301 88 28 13 426 May 1,257 65 159 229 970 282 83 25 14 422 June 1,267 67 164 219 985 276 86 24 14 420 July 1,295 68 158 221 981 287 96 24 14 422 August 1,287 69 142 213 967 283 92 25 12 423 September ___ 1,317 72 141 227 995 289 99 24 14 423 October . _ 1,333 69 151 235 989 318 99 25 17 428 November 1,364 65 150 260 986 346 110 24 17 435 December 1,395 64 164 249 1,048 342 103 30 12 424 1937—January 1,433 62 162 243 1,028 372 118 32 19 428 February 1,482 61 188 230 1,084 366 116 32 25 418 March 1, 549 61 175 223 1,172 346 115 29 18 419 April ._ 1,559 58 163 227 1,215 314 111 29 18 417 1 Excluding balances with reporting firms (1) of member firms of New York Stock Exchange and other national securities exchanges and (2) of firms' own partners. 2 Includes both money borrowed from banks and trust companies in New York City and elsewhere in the United States and also money borrowed from other lenders (not including member firms of national securities exchanges). NOTE.—For explanation of these figures see "Statistics on Margin Accounts" in BULLETIN for September 1936. The article describes the methods by which the figures are derived and reported, distinguishes the table from a "statement of financial condition," and explains that the last column is not to be taken as representing the actual net capital of the reporting firms. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

596 FEDERAL RESERVE BULLETIN JUNE 1937 FEDERAL RESERVE BANK DISCOUNT RATES [Percent per annum] Advances secured by Rediscounts and advances un- Advances under sec. direct obligations of der sees. 13 and 13a of the Fed- 10 (b) of the Federal the United States eral Reserve Actl Reserve Act se ( c la . s 1 t 3 p o a f r a t g he ra F ph ed o e f ral Federal Reserve Bank Reserve Act) M R a a y t e 31 be I g n in ef n fe in ct g- v P r i a o r t e u e - s M R a a y t e 31 be I g n in ef n fe in ct g- M R a a y t e 31 be I g n i n e n ff i e n c g t - Boston 2 Feb. 8,1934 Sept.20,1935 Oct. 20,1933 New York_.__ IX Feb. 2.1934 Oct. 10,1935 Feb. 8,1934 Philadelphia- 2 Jan. 17,1935 Nov. 2,1935 Oct. 20,1933 Cleveland May 11,1935 Oct. 19,1935 May 11,1935 Richmond May 9.1935 Sept.23,1935 Feb. 19,1934 Atlanta- Jan. 14,1935 Sept.14,1935 Mar. 17,1934 Chicago Jan. 19,1935 Sept.20,1935 Oct. 16,1933 St. Louis Jan. 3,1935 Oct. 3,1935 Feb. 21,1935 Minneapolis- May 14,1935 Oct. 29,1935 Apr. 15,1933 Kansas City- May 10,1935 Aug. 26,1935 May 10,1935 Dallas May 8,1935 Oct. 8,1935 Mar. 12,1934 San Francisco. Feb. 16,1934 Sept.20,1935 Oct. 19,1933 1 Rates indicated also apply to United States Government securities bought under repurchase agreement. Back figures.—See Annual Report for 1935 (table 40). BUYING RATES ON ACCEPTANCES RATES ON INDUSTRIAL ADVANCES Rates on advances and commitments under Sec. 13 (b) of the Federal Buying rates at the Federal Reserve Bank of New York Reserve Act as amended June 19, 1934. Percent per annum except as otherwise specified. In effect May 31, 1937. [Percent per annum] [Percent per annum] Advances to financ- Maturity e R M ff a e a c t y e t i 3 o n 1 n In g in ef n f i e n c g t — be- Pre ra v t i e ous A d d ir v e a c n t c t e o s ing institutions— Commit- Federal Reserve Bank industrial On por- ments or com- tion for to make 1-15 days i... Oct. 20, 1933 mercial or- which On re- advances 1 31 6 - - 4 3 5 0 d d a a y y s s . . _ . . ____ d d o o ganizations i t n io st n i tu is - m po a r in ti i o n n g 46-60 days__. do 61-90 days... ...__do obligated 91-120 days.. do 121-180 days. Boston 3H-6 3 3H New York— 4-6 3 4-5 1 This rate also applies to acceptances bought under repurchase agree- P C h le i v la e d la e n l d phia- 4H 4 - -6 6 3H 3 (2) 4 ments, which agreements are always for a period of 15 days or less. NOTE.—Minimum rates on prime bankers' acceptances payable in Richmond 6 4-6 4-6 1-2 dollars; higher rates may be charged for other classes of bills. A C t h l i a c n a t g a o 5-6 6 13 5 5-6 5 1-2 Back figures.—See Annual Report for 1935 (table 41). St. Louis 4-5^ 3H 4 Minneapolis.. 6 4H-5 4H-5 Kansas City- 4-6 4 4 H-2 MAXIMUM RATES ON TIME DEPOSITS D Sa a n ll a F s rancisco. 5 5 - - 6 6 3-4 4 5 4 - - 6 5 Maxim t u h m e B ra o t a e r s d t o h f a t G m ov a e y r n b o e r s p u ai n d d e b r y p m ro e v m is b io e n r s b o a f n k R s e g as u l e a s t t i a o b n l i Q sh . ed by 1 Authorized rate 1 percent above prevailing discount rate. 2 Same as to borrower but not less than 4 percent, [Percent per annum] a Flat charge. Back figures.—See Annual Report for 1935 (table 40). Nov. 1, 1933 Feb. 1, 1935 In effect MEMBER BANK RESERVE REQUIREMENTS to to beginning [Percent of deposits] Jan. 31, 1935 Dec. 31, 1935 Jan. 1, 1936 S P O a o t v h s i t e n a r l g s S t i a d m v e e i p n o g s d s i e t d s p e o p s o it s s i ts pay- Clas a s n es d o b f a d n e k p s osits A Pr u 1 i g o 9 . 3 r 6 1 t 5 o , A Fe u 1 1 b 9 g 9 . 3 . 3 6 2 7 1 - 9 5 , , A M 1 p 1 a 9 r 9 r . 3 3 . 7 3 7 - 1 0 , , an M d 1 a 9 a y 3 f 7 t 1 e , r able in: 6 months or more 90 days to 6 months On net demand deposits.-i Less than 90 days Central reserve city 13 19H 22% 26 Reserve city 10 15 17H 20 Country 7 ioy2 12M 14 NOTE.—Maximum rates that may be paid by insured nonmember banks as established by the Federal Deposit Insurance Corporation, On time deposits: effective February 1, 1936, are the same as those now in effect for mem- All member banks 3 6 ber banks. In some States the maximum rates established by the Board and the Federal Deposit Insurance Corporation are superseded by i See footnote to table on page 584 for explanation of method of computlower maximum rates established by State authority. ing net demand deposits. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

597 JUNE 1937 FEDERAL RESERVE BULLETIN 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; percent per annum] Prevailing rate on- Average rate on- Aver- 1929 1930 1931 1932 1933 1934 1935 1936 1937 age Year, Prime Prime Stock- Stock ex- u. s. yield on New York City: month or com- bank- ex- change call Treas- U.S. January 5.74 5.64 4 24 4 71 4 1? 3 58 ?, 83? 64 2.50 date mercial ers' change loans ury 273- Treas- February 5.73 5.35 4.31 4.71 4.11 3.43 2.90 2 56 2 41 paper, accept- time day bills ury March 5.81 5.22 4.20 4.72 4.88 3.31 2.64 2.61 2.50 4 to 6 ances , loans, offered 3-5 year April 5.85 4.91 4.17 4.69 4.33 3.39 2.61 2 54 2 53 months 90 90 New Re- within notes May—. - 5 88 4.74 4.11 4.55 4 ?4 3 4? 2.69 2.51 days days newal period June 5.93 4.59 4.13 4.61 4. 10 3.30 2.66 2 44 July ... 5 88 4.48 4.05 4.42 3 93 3.30 2.61 2.44 August 6.05 4.41 3.97 4.45 3.97 3.33 2.67 2.42 1934 average.__ 1.02 .25 .90 1.00 1.00 i .26 2.11 September 6.06 4.29 3.93 4.30 3.79 3.26 2.72 2.40 1935 average... .76 .13 .56 .56 .56 2.14 1.28 October 6.08 4.26 4.27 4.35 3.76 3.28 2.72 2 46 1936 average. _ .75 .15 1.16 .91 .91 .14 1.11 November. _._ 5 86 4.17 4 67 4.12 3.52 3.22 2.77 2.43 December 5.74 4.16 4.64 4.22 3.48 3.18 2.61 2.43 1936—Mar M y% 1 .75 .75 .11 1.09 Apr X 1 .75 .75 .10 1.10 Year 5.88 4.69 4.22 4.49 4.02 3.33 2.70 2 49 May X 1~1K .93 .93 .18 1.09 8 other northern and June X Y8 IX I. 00 1.00 .23 1.12 eastern cities: July..... % IX LOO 1.00 .14 1.17 January 5.87 5.88 4.61 5.07 4.89 4.65 4.08 3.62 3.36 Aug 8 »A! IX LOO 1.00 .18 1. 12 February 5.86 5.66 4.63 5.13 4.84 4.49 4.02 3 63 3 43 Sept 8Ae IX LOO 1.00 .16 1.09 March 5.91 5.47 4.62 5.14 5.39 4.52 4.05 3. 6C 3.34 Oct. I 00 1.00 .13 1.12 April 6.00 5.22 4.57 5.10 5.09 4.52 S. 99 3 47 3 36 Nov %A Vie IK LOO 1.00 .10 .99 May __ 6.09 5.13 4.55 5.14 4.99 4.39 3.88 3.45 Dec *A Vie IX L 00 1,00 .21 1.04 June 6.02 5.06 4.49 5.13 4.97 4.30 3.78 3 51 July „ . - 6.08 4.81 4.48 5.05 4.82 4.15 3.87 3 61 1937—Jan %AVi«-K IX LOO 1.00 .36 1. 18 August 6, 11 4 79 4.47 5 12 4 68 4 12 3 79 3.47 Feb 3/ Vie ix .00 1.00 .38 1.22 September. _ 6.24 4.74 4.48 5.03 4.65 4.11 3.75 3.45 Mar Vie-Vie IX LOO 1.00 .58 1.42 October 6 25 4.75 4.62 4.96 4 51 4 13 3 75 3.50 Apr Vie IK LOO 1.00 .70 1.59 November 6.12 4.66 4 87 4.88 4.54 4.08 3.63 3.47 December 5.94 4.68 4.91 4.88 4.59 3.98 3.67 3.46 Week ending: Mar. 13.— X Vie IX .00 1.00 .53 1 40 Year 6.04 5.07 4.61 5.05 4.83 4.29 3.86 3 52 Mar. 20—. Vie-7Ae IX .00 1.00 .71 1.50 27 southern and Mar. 27_... 3 H Vie IX .00 1.00 .64 1.50 western cities: Apr. 3 1 9/l6 IX LOO 1.00 .66 1.57 January 5.94 6.12 S 50 5.61 5.60 5.40 4.95 4.47 4 16 Apr. 10-— 1 Vie IK .00 1.00 .67 1.66 February 5 96 6 05 5. 43 5 61 5 56 5 39 4 84 4.51 4.15 Apr. 17 1 Vl6 IX .00 1.00 .70 1.60 March 6.04 5.98 5.40 5.64 5.66 5.40 4.85 4.44 4 15 Apr. 24... 1 Vie 1.00 1.00 .72 1.54 April _ 6 07 5 86 5.36 5 63 5 68 5 34 4.80 4.40 4.21 May 1 1 Vie IK 1.00 1.00 .74 1.52 May 6.10 5.75 5.26 5.64 5.66 5.28 4.79 4 43 May 8—- 1 Vie IK 1.00 1.00 .72 1.49 June 6 16 5.69 5 34 5 62 5 62 5.19 4.76 4.39 Mav 15.._ 1 IK 1.00 1.00 .69 1.49 July 6.17 5.63 5 30 5.63 5.54 5.07 4.58 4 35 May 22— 1 K IK 1.00 1.00 .62 1.47 August. _ 6.22 5.58 5.28 5.68 5.53 5.05 4.63 4.25 September 6 27 5 55 5.32 5 63 5, 55 5 04 4 51 4.29 October 6.29 5.54 5.38 5.56 5.50 5.05 4.55 4.23 i 91-day and 182-day bills. November 6.29 5.50 5.53 5.55 5.42 4.93 4.51 4.24 2182-day and 273-day bills. December 6.20 5.43 5.56 5.60 5.43 4.92 4.55 4.14 Back figures.—See Annual Report for 1935 (tables 42 and 43). Year 6.14 5.72 5.39 5.62 5.56 5.17 4.69 4.35 BOND YIELDS1 [Percent per annum] Corporate * Year, month, or date T U u r r . e y a S 2 s . - g M ( r h i a u p i d n g a e i h l ) c - - 3 Total Aaa A B a y ratings A Baa In tr d ia u l s- By R r g o a r a i o d l u - ps u P t u i b li l t i y c Number of issues 7-12 15 120 30 30 30 30 40 40 40 1934 average 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 4.46 3.60 3.95 4.55 5.75 4.02 4.95 4.43 1936 average . _ _ . 2.47 2.68 3.87 3.24 3.47 4.02 4.77 3.50 4.24 3.88 1936—April 2.51 2.76 3.97 3.29 3.57 4.12 4.91 3.57 4.38 3.97 May 2.50 2.76 3.96 3.27 3.53 4.11 4.94 3.55 4.40 3.95 June _____ . 2.50 2.72 3.94 3.24 3.51 4.09 4.90 3.54 4.35 3.91 July 2 50 2.70 3 90 3.23 3.48 4.05 4.84 3.52 4.31 3.86 August _ _. _ 2.43 2.68 3.85 3.21 3.44 3.99 4.74 3.48 4.22 3.85 September 2 41 2.62 3 79 3.18 3.41 3.94 4.62 3.44 4.09 3 83 October _ . 2.42 2.58 3.75 3.18 3.38 3.90 4.54 3.42 4.02 3.80 November 2.29 2.45 3.71 3.15 3.31 3.85 4.52 3.38 4.00 3.74 December 2 27 2.31 3.67 3.10 3.28 3.78 4.53 3.37 3.96 3.69 1937—January __ 2.29 2.38 3.66 3.09 3.30 3.76 4.50 3.36 3.95 3.68 February 2 31 2 57 3 75 3.22 3.41 3.85 4.54 3.46 4.04 3.76 March 2.50 2.72 3.87 3.32 3.50 3.98 4.69 3.55 4.17 3.90 April 2 74 2 84 3.98 3.42 3.58 4.05 4.86 3.65 4.29 3.99 April 28 2.76 2.84 3.98 3.41 3.57 4.05 4.90 3.64 4.33 3.98 May 5 2 69 2.82 3. 93 3.36 3. 52 4. 00 4. 83 3.59 4.26 3.94 Mav 12 2.68 2.75 3. 91 3.34 3.49 3. 98 4. 83 3.55 4.26 3.93 May 19 2. 68 2.74 3.92 3.32 3.48 3.99 4.90 3.53 4. 29 3.96 1 Monthly data are averages of daily figures, except for municipal bonds, which are averages of Wednesday figures. 2 Average of yields of all outstanding bonds due or callable after 8 years. »Standard Statistics Co. *Moody's Investors Service, revised series. Because of limited number of suitable issues, less than 40 industrial bonds are included; the industrial Aaa group has been reduced from 10 to 3 and the industrial Aa group from 10 to 4. Back figures.—See Annual Report for 1935 (table 74). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

598 FEDERAL RESERVE BULLETIN JUNE 1937 BOND PRICES 1 STOCK PRICES 1 Corporate3 Common stocks (index, 1926=100) U. S. Munic- Year, month, or date Treas- ipal Year, month, or date ury2 g ( r h a i d g e h ) - 8 Total In tr d ia u l s- R ro a a i d l- Utility Total In tr d ia u l s- R ro a a i d l- Utility Number of issues 7-12 60 20 20 20 Number of issues. 347 32 40 1 1 1 9 9 9 3 3 3 5 4 6 a a a v v v e e e r r r a a a g g g e e e 1 1 1 0 0 0 7 6 3 . . . 0 0 5 1 1 9 O 1 7 7 9. . . ; 3 8 4 9 8 8 7 4 8 . . . 5 6 5 8 9 8 2 1 8 . . . 2 9 2 9 8 7 4 3 9 . . . 7 4 8 1 8 9 0 7 8 5. . . 4 8 2 1 1 1 9 9 9 3 3 3 6 5 4 a a a v v v e e e r r r a a a g g g e e e ._ 1 1 1 3 3 2 8 3 0 . . . 9 7 8 11 7 7 1 8 2 1 8 2 9 1 7 1 10 6 7 4 9 1 1936-April 107.0 116.2 95.9 91.2 91.6 104.8 1936—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 June 106.6 116.9 96.2 90.6 92.5 105.5 June 138.8 106 121 102 July 106.6 117.4 97.1 91.1 94.2 106.0 July 139.1 109 124 106 August 107.2 117.8 97.7 91.6 95.8 105.7 August 139.3 113 128 109 September 107.2 118.8 98.6 92.2 97.9 105.8 September. 139.0 114 130 108 October 106.9 119.5 99.6 93.1 99.7 106.0 October 138.3 119 136 109 November 108.2 122.1 99.8 94.2 99.2 106.0 November. 139.0 124 144 109 December 108.0 124.8 99.9 94.5 99.6 105.6 December.. 140.1 123 143 111 1937—January 107. 3 123.5 100.3 94.8 100.6 105.7 1937—January 141.8 126 147 114 February 107. 2 119.7 100.0 94.7 100.2 105.1 February... 141. 2 130 152 111 March 105. 2 116.9 98.5 93.5 98.3 103.6 March 138.0 130 153 106 April 102. 6 114.8 96.6 92.0 95.3 102.4 April 136.0 125 147 101 Apr. 28 ___ 102.4 114.8 95.9 91.6 94.2 101.8 Apr. 28 135.3 115 135 94 May 5 103.1 115.1 96.7 92.2 95.4 102. 5 May 5 135. 5 119 140 98 May 12 103.1 116.4 96.4 92.2 95.4 101.8 May 12 135.4 117 137 94 May 19 103.2 116.6 95.8 91.7 94. 4 101. 2 May 19 135.0 114 134 91 I 1 Monthly data are averages of daily figures except for municipal bonds, i Monthly data are averages of Wednesday figures. which are averages of Wednesday figures. 1 Average derived prices. 8 Average prices of all outstanding bonds due or callable after 8 years. 1 Prices derived from average yields. Source.—Standard Statistics Co Source.—U. S. Treasury bonds, based on price quotations from Treas- Back figures.—See Annual Report for 1935 (table 73) ury Department; for other bonds, Standard Statistics Co. Back figures.—See Annual Report for 1935 (table 73); for U. S. Treasury bonds, see BULLETIN for May 1936, p. 317. CAPITAL ISSUES [In millions of dollars] For new capital For refunding Total Domestic Domestic (new Total Total Y m e o a n r t o h r f i u a r n n n e g - d d ) - m a ( f e d o n s o r d - t - ic Total S m a t n a u d t - e F e e ra d l - Co B rp o o n r d a s te e F ig o n r- * m a ( f e d o n s r o d - t - ic Total S m a t n a u d t - e F e e ra d l - C B or o p n o d r s ate e F ig o n r- ' eign) nici- agen- Total and Stocks eign) nici- agen- Total and Stocks pal cies2 notes pal cies2 notes 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 35 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 o 9 1935. _ 4,699 1,457 1,409 855 150 404 334 69 48 3,242 3,216 365 987 1,864 1,782 81 26 1938 6,214 1,972 1,949 735 22 1,192 839 352 23 4,242 4,123 382 353 3,387 3,187 200 119 1936—Apr 986 176 176 48 0 128 102 26 0 810 765 37 199 530 492 38 45 May... 420 112 112 68 6 38 13 24 0 308 308 37 4 267 252 16 0 June... 734 218 217 64 1 152 123 29 1 516 514 45 93 376 325 50 2 July.... 339 104 103 33 0 70 39 31 1 236 236 9 2 225 222 3 0 Aug 297 217 217 46 0 171 146 25 0 80 80 11 8 62 55 6 0 Sept— 409 178 177 103 0 75 48 26 1 231 231 56 0 175 156 19 0 Oct 464 186 173 78 0 95 60 35 13 278 278 5 1 272 249 22 0 Nov 372 158 158 49 0 109 97 12 0 214 199 16 28 155 145 10 15 Dec 726 266 266 48 0 218 100 118 0 459 459 49 3 408 395 13 0 1937—Jan 603 241 241 146 0 95 64 31 0 362 289 59 26 204 87 116 73 Feb.... 497 168 168 34 4 130 74 56 0 329 255 9 21 225 140 84 74 Mar.... 382 185 185 47 0 138 99 39 0 197 197 12 4 181 162 19 0 Apr.... 272 152 152 67 0 85 45 40 0 121 101 13 1 87 69 18 20 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; excludes direct obligations of U. S. Treasury. 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 1935 (table 72) for figures of new issues—annual and monthly basis. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

599 JUNE 1937 FEDERAL RESERVE BULLETIN 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 April 30, 1937 Total inter- 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 Total 34,295 21, 295 10, 377 269 2, 353 June 1933 22,539 22,158 14, 223 4,780 2,200 954 381 Obligations maturing: June 1934 27,053 16, 510 6,932 1,635 1,404 573 1937—Before July 1 751 751 June 1935 28, 701 27, 645 14,936 10, 501 156 2,053 1,056 July 1-Sept. 30 1, 568 817 751 Oct. 1-Dec. 31 : 651 651 1936 1938—Jan. 1-Mar. 31 932 732 200 March 31,459 30, 591 15,981 12,400 258 1,953 Apr. 1-June 30 618 618 April 31, 425 30, 601 16,005 12, 383 259 1,953 825 July 1-Dec. 31 596 596 May 31, 636 30, 822 16,030 12, 381 258 2,153 814 1939 2,762 2,762 June.- 33, 545 32, 756 18, 395 11,861 146 2,354 790 1940 : 2,854 2,854 July 33, 436 32, 672 18, 295 11,906 117 2,353 764 194] ! 2, 219 834 1,385 August 33, 377 32, 621 18, 274 11,886 107 2, 353 757 1943 ; 898 898 September.. _ 33,831 33,086 19,257 11,370 106 2,353 745 1945 1, 401 1,401 October 33, 830 33,081 19,255 11, 368 105 2,354 749 1946 1, 519 1,519 November 33, 791 33,085 19, 262 11,366 104 2,353 706 1947 1, 697 1,697 December 34,405 33, 699 20, 575 10,804 117 2,203 707 1948-1952 4, 328 4,328 1953-1957 5, 694 5, 694 1937 1958-1961 3, 643 3,643 January _ 34, 503 33,822 20, 597 10, 847 125 2,253 681 Special issues: February 34, 601 33, 926 20, 644 10, 868 161 2,253 675 U. S. savings bonds 752 752 March 34, 728 34,064 21, 273 10, 357 231 2, 203 664 Adjusted service bonds___ 410 410 April 34, 941 34, 295 21, 295 10,377 269 2,353 i 646 All other 2 1,001 119 1 Includes $324,000,000 of Government liability for retirement of 1 Issues classified as of date of final maturity; most issues callable at national bank and Federal Reserve bank notes, as a result of deposit earlier dates; postal savings bonds only issues callable before 1940; adof funds by banks; this compares with $454,000,000 on Apr. 30, 1936. justed service bonds and most of the U.S. savings bonds are redeemable at option of holder. 2 Includes such issues as postal savings bonds and notes, retirement fund notes, and old age reserve account and unemployment trust fund series. SUMMARY OF TREASURY OPERATIONS [On basis of daily statement of United States Treasury. In millions of dollars] General and special funds Trust Receipts Expenditures > Excess c e e o x t a c u c c . - e n * s t s s, In cr c e r a e p s a e e s r e i d o u o d r r i d ng e- Period c M e i l s l - a- Generala Recovery and relief ( c o + e f i ) p o r t e s r - ( c o + e f ) i p r o t e s - r Total c ta o I x n m e - e s n i r n n e e n t o v u a e u e e l r - s - ot A he ll r Total I e p d n s u e t t b e b o l r t i n - c o A th l e l r Total Relief P w u o b rk li s c ot A he ll rs 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 Fiscal year ending June: 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 1936 4,116 1,427 2,010 '8,477 749 4, 436 3,291 985 2,092 213 -4,3616 +123 +840 +5,078 10 months ending: April 1935____ 3, 091 822 1,383 886 f>, 520 1,958 2, 884 1, 907 860 117 -2.430 -047 + 1,615 April 1936 3. 331 1,081 1.088 562 5, 582 610 2,228 2, 744 933 1, 522 289 -2 252 + 128 +601 +2, 725 April 1937 4, 091 1,5(54 1,803 725 6,150 663 3,113 2, 374 2, 447 6 148 -2,058 -84 -980 +1,162 1936—April .._. 231 36 152 43 614 72 228 314 '259 22 -383 7 -424 -34 May 256 35 158 63 558 8 258 291 264 7 -302 +7 -84 +211 June- 529 310 164 55 '2,337 132 51,949 256 306 6 83 -1,807 -12 +323 +2,142 July 294 39 201 54 412 10 320 82 275 s 228 -118 +2 -451 -335 August 343 32 264 47 551 26 273 252 247 69 -208 -55 -327 -63 September 499 288 161 50 668 144 255 268 252 8 -169 (7) +284 +452 October 272 27 186 60 681 74 292 315 277 32 -409 -15 -424 (7) November 233 33 148 52 535 8 267 260 260 e 2 -303 -17 -358 -38 December 517 286 174 57 656 140 266 250 274 6 26 -138 +26 +500 +613 1937—January 284 43 168 73 631 14 318 299 222 74 -348 +72 -180 +95 February 275 58 148 68 553 20 331 202 205 64 -279 -7 -187 +99 A M p a r r i c l h 1,0 3 1 G 2 3 700 I 1 C 8 G 8 1 1 4 2 0 3 7 70 5 8 4 1 6 5 8 9 4 3 0 8 1 8 2 2 3 0 9 8 2 2 2 1 4 2 6 18 + -3 2 4 5 5 7 - + 98 8 + -1 2 2 8 4 7 + + 2 1 1 2 2 7 1 Includes customs, processing taxes, taxes under Social Security Act, and miscellaneous receipts. 2 Excludes public-debt retirement, s 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. 4 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), transactions in checking accounts of certain special governmental agencies and unemployment trust fund account. 5 Expenditures include $1,673,000,000 of payments to veterans under the Adjusted Compensation Payment Act of 1936. 6 Excess of credits. 7 Less than $500,000. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

600 FEDERAL RESERVE BULLETIN JUNE 1937 GOVERNMENTAL CORPORATIONS AND CREDIT AGENCIES, MARCH 31, 1937 [Based on compilation by U. S. Treasury Department from reports received from organizations concerned. In millions of dollars] Financed wholly from Governmentfunds Financed part f l u y n f d ro s m Government Total Total Recon- Com- Public Agricul- Farm Other Home struction modity Works tural mort- farm mort- Finance Credit Admin- credit Other gage credit gage Other Mar. 31Feb. 28, Mar. 31, Corpo- Corpo- istra- institu- institu- institu- institu- 1937 1937 1936 ration ration tion tions tions tions tions ASSETS Loans and preferred stock: Loans to financial institutions 337 1 143 6 486 494 578 Preferred stock, etc 597 0) 3 148 745 746 856 Home mortgage loans 2,662 2,662 2,699 2,952 Farm mortgage loans 2,922 2,922 2,930 2,943 Other agricultural loans 1 167 24 146 231 0) 569 584 707 All other loans 813 129 269 1,211 1,204 1,137 Total loans and preferred stock 1,748 167 129 24 416 2,922 231 2,952 6 8,595 8 657 9,173 Cash 3 0) 6 67 89 20 94 11 291 264 340 United States direct obligations 3 5 30 47 99 6 347 536 514 470 Obligations of Government credit agencies: Fully guaranteed by U S. 14 0) 69 7 102 191 195 216 Other 2 25 2 (2) 2 29 30 27 Production credit association class A stock 76 76 75 74 Accounts and other receivables.__ 31 C1) 32 169 3 38 4 279 282 268 All other assets 6 C1) 18 0) 219 156 0) 3 302 13 714 718 489 Total assets other than interagency 2 1,791 167 148 152 766 3,383 422 3,399 483 10,711 10, 735 11,055 LIABILITIES Bonds, notes, and debentures: Guaranteed by United States. . 251 0) 1,422 2,993 4,666 4, 667 4,676 Other 2 2 1,176 161 1 0) 1,340 1,327 1, 375 Other liabilities (including reserves) 51 S 5 48 15C 138 86 497 489 332 Total liabilities other than 1 interagency 2 . 303 8 5 27M 164 3,133 86 6,503 6,483 6,383 Excess of assets over liabilities, excluding interagency transactions.. 1,488 158 148 147 717 630 258 266 396 4,208 4,252 4, 672 Privately owned interests j 170 3 34 139 346 343 344 U. S. Government interests 1,488 158 148 147 717 j 400 255 232 257 3,802 3,908 4,328 i Less than $500,000. 2 Excludes $761,000,000 of Federal land bank bonds held by Federal Farm Mortgage Corporation. 3 Shares of Federal savings and loan associations subscribed by HOLC are classified in "Preferred stock, etc." Shares held by U. S. Treasury amounting to $48,000,000 are classified under "All other assets." 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] Apr. 30 Oct. 31, Nov. 30, Dec. 31, Jan. 31, Feb. 28, Mar. 31, Apr. 30, 1936 1936 1936 1936 1937 1937 1937 1937 Loans to financial institutions 410, 344, 591 330, 883 325, 620 313, 335 304, 815 295, 654 i 286,611 Loans on preferred stock of banks and insurance companies.. 4-5, 47, 807 47, 586 43, 509 41, 796 41, 465 41, 379 2 41,132 Preferred stock, capital notes, and debentures 844, 662, 587 658, 654 650, 777 630, 272 607, 777 596,998 591, 784 A L L L L S O e o o o o g t c h a a a a r u n n n e i n c r r s s s s u i t l f t l t t i o o t e o o o u a s r r r n d i a n a s p r s e l i d a u l l r i u r l f n o o c - s l a a a h t i g r d n q a i e u s s s a e , i l d ( d l i e a a n v n t f c i r e d n o l e u g m c , d o a i p n m n P r g o d u m j b r e i e e l r c i r c r c c t i e s g i i a . W v a . l e t i o r b o s r u n ) k s s i d n i A e s s t d s r e m ic s t i s nistration 3 1 14 5 9 6 5 3 4 8 0 4 4 3 , , , , , , , 3 1 1 5 9 6 6 4 3 0 2 0 5 1 1 , , , , , ; , 3 9 8 8 5 6 6 2 8 4 1 6 3 3 6 0 5 0 9 5 2 3 1 1 6 6 4 9 3 1 3 6 5 4 1 1 , , , , , , , 2 1 1 6 1 9 8 7 9 8 3 4 2 5 3 0 4 5 5 5 0 3 1 U 4 6 6 9 S 3 5 4 5 1 i , , , , , , , 3 0 3 8 9 5 r 6 4 4 2 " 8 9 9 4 3 " 0 2 2 3 2 1 4 6 6 0 1 5 5 3 1 0 1 3 , , , , , , , 3 1 0 1 0 5 9 2 6 7 8 7 0 4 7 4 9 1 6 2 3 3 2 1 0 4 6 6 0 6 5 3 6 8 1 1 , , , , , . , 9 4 8 7 5 7 4 4 0 3 2 5 1 4 9 5 8 3 4 7 1 3 2 1 4 2 6 6 0 7 1 3 0 8 1 2 , , , , , , , 4 4 4 3 7 6 0 6 9 4 6 9 2 5 1 6 4 7 3 2 0 3 2 11 1 7 4 6 4 7 5 0 2 5 1 , , , , , , , 1 0 0 8 7 5 4 6 8 4 2 3 3 6 9 4 4 9 2 7 8 Total loans and investments, other than interagency.__ 2,121,071 1, 871, 782 1, 841, 3251, 810, 9841,775, 677 1,7 1, 739, 2651,736,389 Loans to Federal land banks. 34, 365 27 993 27, 620 24, 750 22, 784 22,191 14, 517 14, 333 Loans to Commodity Credit Corporation 291,961 97| 916 98,417 98, 721 135, 024 129,320 79,1 55,485 Capital stock of Commodity Credit Corporation 97,000 97,000 97,000 97,000 97,000 97,000 97,000 Capital stock of, and loans to R. F. C. Mortgage Co._ __ 17, 623 33,996 35, 701 37, 406 38, 670 39, 233 43, 769 44,340 Preferred stock of Export-Import banks 17,000 20,000 20, 000 20,000 20, 000 20,000 20,000 20,000 Total loans and investments.. 2, 482,020 2,148, 78 2,120,163 2,088,961 2, 089, 255 2,056, 825 1, 994, 83; 1,968, 547 1 Includes $90,000,000 of loans for distribution to depositors of closed banks. 2 Includes $483,000 of preferred stock instalment sale contracts. 3 Includes $1,000,000 of loans to Rural Electrification Administration. NOTE.—For explanation of table and back figures, see BULLETIN for April 1936, p. 220. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

601 JUNE 1937 FEDERAL RESERVE BULLETIN FARM CREDIT ADMINISTRATION LOANS AND DISCOUNTS OUTSTANDING, BY INSTITUTIONS [In thousands of dollars] Farm mo b rt y g - age loans F c a e r n d e d d e r i d t a i l b s a c in o n t u k e n r l t m o s a e f n o d r s i — a t t o e Loans to cooperatives by- End of month la F nd ed b e a ra n l ks C s o B L i m o a a n n n m e k d r is- p s a c p c R o r n r c o r o c e u d e e r a i d d g l d a a g t i u b i t t u i t r o t i i c a i r o o n c - t a n a n o n i a s o k l r s s l - n , - s , f c i i n e o n O t t x o i a s i o t c p v n t h n e i e e c t e p s r s u i r , a n t - - g ti P a o s r t n s i o o o d c n c r u i s e a c d - - it t R i u a t r r e g a c a g r t o l i i i o c r o c u p n n r l o e s a - d l - c d r E g r l o o o e m p a n u n e c g a r s y h n - t d m F b c i e n e r a d d e t n e e d i k r a r i a - t s te l B in C c a a c B o e n t l o i a n u k v p n t d s e e r k i s r a f n , o - l g r i M A i r n n e t g g a g u v r r r f o i A k c u a l u v e n l c t l - t d - for cooperatives i 1933—December. 1,232, 707 70,738 73,263 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 33,969 27,851 64,863 1935—December. 2,071,925 794, 726 104, 706 47,162 94,096 43,400 172,489 2,731 50,013 44, 433 1936—April 2,061, 881 823,110 132, 715 50, 672 127, 511 38,665 175,151 1,685 40,015 43, 523 May_ 2, 062,986 827,052 140,177 52, 914 135.467 37,711 176, 789 932 39, 688 41, 696 June 2,064, 037 827, 248 144,155 54,012 139.468 36,026 176, 234 247 39,500 44, 556 July._ 2.064, 759 829, 464 146, 243 55,050 140, 982 34, 610 174,207 225 43,018 44,431 August 2, 067,106 831,892 144, 423 54,884 135, 603 33, 042 172, 863 314 44, 345 44,025 September. 2,067, 711 833, 906 138, 653 50,099 122, 004 31, 216 171, 320 405 56, 267 48, 583 October _.. 2, 067, 647 835,187 135, 791 43,946 110, 775 28, 664 168, 688 758 71,150 51,348 November. 2.065, 719 836,194 131,644 41, 277 105, 441 26, 491 166, 291 1,336 72, 500 56, 216 December. 2,064,158 836, 779 129, 872 41,017 105, 212 25, 288 164, 887 1,641 69,647 53,754 1937—January.... 2,061,472 836,062 125, 825 40,080 106,081 24,454 1,486 64,411 54,322 February.. 2,060, 233 835, 509 130,139 41,061 114,551 24, 249 163, 250 1, 359 60, 356 52, 359 March 2,057,930 833,821 144,250 42, 367 131, 905 23,892 174, 709 1,305 56, 736 51,810 April 2, 055, 397 832, 881 153, 795 44, 042 143,901 23, 588 187,185 1, 249 49, 314 48, 522 1 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 JhPAN BANK BOARD OBLIGATIONS FULLY GUARANTEED BY LOANS OUTSTANDrUb, BY INSTITUTIONS THE UNITED STATES L [Loans in thousands of dollars] AMOUNTS OUTSTANDING, BY AGENCIES [In millions of dollars] Home mortgage loans by- Federal savings and Federal Federal Home Reconloan associations home Farm Owners' struction loan End of month ^otal Mortgage Loan Finance End of month Home bank Corpora- Corpora- Corpora- Owners' Number of loans to tion tion tions Loan Cor- associations member poration i Lo re a - ns i t n io s n ti s t u 2 - 1933—December. 180 180 Re- ported 1934—December. 3,063 980 1,834 249 Total port- 1935—November. 4,460 1,387 2,819 253 ing December. 4,494 1,387 2,855 252 1936—January.. _ 4,562 1,399 2,911 253 1 1 1 9 9 9 3 3 3 5 3 4 — — — D D D e e e c c c e e e m m m b b b e e e r r r 3 2 2 , . 8 3 9 9 7 4 , , 1 0 6 3 2 8 1,0 6 2 3 5 3 9 9 8 45 8 5 1 31 6 5 9 , , 7 6 3 8 4 3 1 8 8 0 6 2 5 , , , 4 6 7 4 5 9 2 8 5 A M M Fe p a a b r y r i r c l u h ary.. 4 4 4 4 , , , , 6 6 7 6 5 7 3 0 4 6 0 3 1 1 1 1 , , , , 4 4 4 4 0 2 0 1 7 2 7 1 2 2 3 3 , , . , 9 0 0 9 1 7 2 9 3 0 9 5 2 2 2 2 5 5 5 5 3 2 2 2 1 1 9 9 3 3 8 7 — — J O M J N F S D A A J u u e e c a o u e a n l p p t b n y c g v y r o e t u i r e u e e b l u a m s m m e r a t r y b b b ry e e e r . r r . . . . . . . ' r 2 2 2 2 2 2 2 2 2 2 2 , , , , , , , , , , , 6 9 7 9 8 8 8 9 7 9 8 9 2 2 4 3 9 7 0 6 6 6 8 9 4 4 8 0 1 1 1 5 0 , , , , , , , , , , , 6 2 0 1 0 6 4 8 5 2 7 1 9 9 9 1 4 8 7 2 0 6 1 4 8 4 7 0 3 0 7 1 1 1 1 1 1 1 1 1 1 1 1 1 , , . , , , , , , , , 2 2 2 1 1 1 1 1 1 1 2 2 0 9 1 8 7 6 1 3 0 4 8 6 2 2 3 5 5 4 5 2 0 1 1 1 1 1 1 1 1 1 1 1 , , , , , , , , , , , 1 1 0 0 0 0 0 0 0 0 0 5 4 6 8 8 7 7 0 1 0 2 7 3 5 0 0 6 6 6 7 6 5 '6 5 4 4 5 3 4 4 5 5 5 7 1 3 9 6 1 4 9 4 4 0 6 2 2 7 4 5 0 1 4 4 4 , , , , , , , , , , , 2 1 1 7 0 8 0 8 2 7 6 1 3 0 6 2 5 1 4 9 4 8 2 0 7 4 2 9 2 0 6 4 2 1 1 1 1 1 1 1 1 1 1 1 4 4 3 4 3 2 0 1 2 2 1 1 3 7 5 4 5 8 5 9 2 0 , , , , , , , , , , , 7 1 9 2 9 7 4 2 9 5 2 0 6 2 0 4 0 4 6 7 8 1 1 7 2 5 1 1 5 1 2 7 8 1937— A D A N M J J S F O u u e e J p e u o c a l n p a b c r g v y t r e i o t n e r c u e l e u b m u h m s m a e t a b b r r b r . e y e y e _ r r . - r . _ . 4 4 4 4 4 4 4 4 4 4 4 , , , , , , , , , , , 6 6 6 7 6 6 6 7 6 6 6 7 6 6 1 6 6 6 2 6 6 6 5 2 2 8 9 7 7 4 6 2 2 1 1 1 1 1 1 1 1 1 1 1 , , , , , , , , , , , 4 4 4 4 4 4 4 4 4 4 4 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 * 3 2 2 2 2 3 2 2 2 3 2 , , , , , , , , , , , 0 9 9 9 0 9 0 9 9 9 9 0 9 8 9 5 8 4 9 8 9 8 2 3 8 3 8 0 4 5 8 2 8 2 2 2 2 2 2 2 2 2 2 2 5 5 5 5 5 5 5 5 5 5 5 1 2 1 2 2 2 2 2 2 2 2 March '•2,661,542 1,249 1,168 "630, 680 142,720 April 2, G25, 493 1,257 1,108 652,557 146,149 r Revised. i Principal amount of obligations guaranteed as to interest and princif Revised. pal. Also guaranteed are debentures issued by Federal Housing Admini In addition to loans the HOLC held on April 30, 1937, $579,000,000 in istrator. The amount oustanding April 30, 1937, was $84,683. o a t n h d e r L a o s a s n e ts I , n c s o u n ra s n is c t e in g C o p r r p in o c r i a p ti a o l n ly a o n f d in i v n e v st a m ri e o n u t s s s i a n v t i h n e g s F e a d n e d r a lo l a S n a v a i s n s g o s - 3 > E E x x c cl l u u d d e e s s o o b b l l i i g g a a t t i i o o n n s s g h u e a ld ra n b t y ee d U . a s S . t o T i r n e t a e s r u es r t y o a n n ly d . reflected in the ciations, real estate and other property, and accrued interest receivable. public debt. Figure for December 1933 includes notes given in purchase »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. 3 Includes accrued interest. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

602 FEDERAL RESERVE BULLETIN JUNE 1937 PRODUCTION, EMPLOYMENT, AND TRADE [Index numbers; 1923-25 average=100. The terms "adjusted" and "unadjusted" refer to adjustment for seasonal variation] Industrial production** Construction contracts awarded (value)3 Fac- Y a e n a d r Total Ma t n u u r f e a s c- Minerals Total Residential All other Fa p c l t o o y r m y e n e t m 3 - r t p o o a l r l y s y 3 Fr l e o i a g d h i t n - g c s a 4* r D s e to p ( r v a e a r l t s u a m e l e ) e n s t * month Ad- Unad- Ad- Unad- Ad- Unad- Ad- Unad- Ad- Unad- Ad- Unad- Ad- Unad- Unad- Ad- Unad- Ad- Unadusted justed justedjusted ustedjusted ustedjusted ustedjusted ustedjusted usted justed ustedjusted justed ustedjusted 1919 83 84 77 63 44 79 107 98 84 78 1920 87 87 89 63 30 90 108 118 91 94 1921 67 67 70 56 44 65 82 77 78 87 1922 85 86 74 79 68 88 90 82 85 88 1923 101 101 105 84 81 86 104 103 100 98 1924 95 94 96 94 95 94 96 96 98 99 1925 104 105 99 122 124 120 100 101 103 103 1926 108 108 108 129 121 135 101 104 107 106 1927 106 106 107 129 117 139 99 102 104 107 1928 111 112 106 135 126 142 99 102 104 108 1929 119 119 115 117 87 142 105 109 107 111 1930 96 95 99 92 50 125 91 89 92 102 1931 81 80 84 63 37 84 77 67 74 92 1932 „ 64 63 71 28 13 40 66 46 55 69 1933 76 75 82 25 11 37 72 49 58 67 1934 79 78 86 32 12 48 83 63 62 75 1935 90 90 91 37 21 50 86 71 64 79 1936 105 105 104 55 37 70 92 82 75 88 1934 Mar 84 87 82 86 100 91 33 33 11 12 51 50 84 84 66 65 64 76 73 April 86 88 85 89 90 81 32 36 12 14 48 54 85 86 68 63 60 76 73 May.... 86 89 86 89 88 86 26 32 11 13 38 47 86 86 68 64 63 75 77 June 84 84 83 84 87 86 26 31 12 13 38 46 85 85 66 64 64 73 70 July 76 73 74 71 84 84 27 30 12 12 39 44 83 83 61 62 62 73 51 Aug 73 73 72 71 80 83 27 28 10 10 40 43 83 84 63 61 62 76 60 Sept..... 71 73 69 70 82 87 29 30 11 11 44 45 78 80 59 60 67 74 79 Oct 74 75 72 73 81 87 31 29 12 12 46 43 81 82 62 59 65 74 82 Nov 75 74 74 73 81 84 31 28 11 11 48 41 81 80 61 59 60 75 83 Dec 86 78 85 76 90 85 31 25 12 10 47 36 82 82 64 60 57 77 135 1935 Jan 90 88 90 87 95 92 27 22 12 10 39 32 84 82 63 59 76 59 Feb 90 91 88 91 97 93 28 24 14 13 39 33 85 85 l#70 66 62 77 61 Mar._._. 88 91 87 91 97 90 26 26 16 16 35 34 86 86^72 65 63 70 71 April 86 89 86 91 88 79 27 30 18 22 33 38 86 86 72 62 59 75 79 May.... 85 87 84 87 90 88 27 32 21 25 32 39 85 85 69 61 60 74 76 June 87 86 85 84 99 97 30 35 24 26 36 43 84 83 67 64 63 79 76 July 86 83 87 83 85 85 35 39 25 25 43 50 85 84 r,7 59 80 55 Aug 88 87 89 87 83 86 38 40 24 24 50 54 86 86 71 6••;•;3 64 77 61 8ept 91 90 92 89 87 93 43 44 25 25 58 59 86 88 74 64 71 81 86 Oct.— 95 97 95 96 93 101 48 45 25 25 66 62 87 89 75 68 75 78 86 Nov 96 98 97 98 93 96 60 53 26 25 88 76 88 89 76 68 69 82 91 Dec 101 96 101 95 102 97 68 54 26 22 103 80 89 88 78 68 64 83 145 1936 Jan. 97 r95 96 95 104 100 62 50 25 21 92 75 89 87 74 70 65 81 63 Feb 94 95 92 93 111 107 52 45 25 22 75 63 87 87 74 71 68 83 66 Mar 93 96 93 97 97 90 47 47 26 28 63 62 88 88 78 66 64 84 77 April.... 101 104 100 105 106 95 47 53 30 35 60 67 89 89 79 71 68 84 85 May___.. 101 105 101 105 102 101 46 56 32 38 57 70 90 90 81 72 71 87 89 June 104 104 105 105 100 101 52 60 36 39 65 78 90 90 81 73 73 87 84 July 108 105 109 105 101 102 59 65 44 45 71 82 93 91 80 76 77 91 63 Aug 108 106 110 106 99 104 62 65 46 46 75 81 93 94 84 76 77 86 68 Sept 109 r107 110 107 102 110 59 60 47 47 69 70 94 96 84 75 84 88 94 Oct 110 111 nil 110 105 115 57 54 43 41 69 65 94 97 89 77 86 90 100 Nov 114 115 115 115 112 115 58 51 40 39 72 62 96 97 91 82 84 94 105 Dec 121 114 121 114 117 111 66 53 45 38 83 65 99 98 95 83 77 92 161 1937 Jan 114 112 115 113 109 105 63 51 45 37 77 63 99 97 91 80 73 93 72 Feb 116 117 116 118 115 111 62 54 47 42 75 64 100 99 96 82 76 95 76 Mar 118 122 117 122 128 118 56 56 45 47 64 63 101 101 101 83 80 93 90 April.— ,118 ,122 ,118 ,124 ,114 P104 P56 ,48 ,57 ,102 84 79 93 89 p Preliminary. r Revised. * Average per working day. * For indexes of groups and separate industries see pp. 603-604; 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 page 358 of BULLETIN for July 1931. 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 for the seasonally adjusted index of factory employment compiled by F. R. Board of Governors see pages 950-978 of BULLETIN for December 1936. For current indexes of groups and separate industries see pp. 605-608. Underlying figures are for pay-roll period ending nearest middle of month. 4 Revised series. For description, back figures, and indexes of classes of freight see pp. 522- 529 of this BULLETIN. Back figures—See Annual Report for 1935 (table 75). For department store sales see p. 631 of BULLETIN for August 1936. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1937 FEDERAL RESERVE BULLETIN 603 INDUSTRIAL PRODUCTION, BY INDUSTRIES (ADJUSTED INDEXES) [Index numbers of the Board of Governors; adjusted for seasonal variation. 1923-25 average = 100] 1936 1937 Industry Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec- Jan. Feb. Mar. Apr. Manufactures—Total 93 100 101 105 109 no no Ill 115 121 115 116 117 P118 IRON AND STEEL 83 100 105 119 120 119 127 137 143 139 129 126 130 Pig iron __ _ 64 77 85 89 90 93 96 98 99 104 107 107 108 109 Steel ingots 85 102 107 115 121 123 121 130 141 147 142 131 128 132 TEXTILES* 100 99 100 107 116 119 120 114 121 139 124 126 129 P123 Cotton consumption ._. _ 100 105 103 111 125 125 127 119 123 144 129 132 136 130 Wool* 96 89 96 103 106 115 108 105 118 140 121 129 128 Consumption* __ __ _ _ 104 92 103 120 125 136 121 109 128 160 126 132 139 P126 Machinery activity * 99 96 102 95 98 101 97 104 118 134 130 137 125 P117 Carpet and rug loom activity^ 68 68 68 66 66 77 89 95 92 94 92 104 101 Silk deliveries 107 102 97 101 108 118 130 121 125 134 118 112 114 120 FOOD PRODUCTS 87 90 84 88 92 91 90 93 98 99 89 87 92 98 Slaughtering and meat packing 83 89 84 85 92 96 100 105 109 100 87 86 89 93 Hogs 61 68 66 64 72 70 79 94 100 85 65 66 69 75 Cattle 109 114 104 113 116 128 125 115 115 117 111 108 113 113 Calves _ 115 116 111 119 130 141 144 129 122 125 130 122 136 130 Sheep 151 134 128 133 135 138 143 152 169 160 175 151 139 142 Wheat flour ... _ _ 92 88 87 94 101 92 77 82 83 87 87 89 89 95 Sugar meltings 96 95 78 89 77 71 70 68 83 115 98 89 108 123 PAPER AND PRINTING: Newsprint production 62 60 59 62 60 61 61 62 67 64 63 62 64 62 Newsprint consumption 132 131 136 137 131 136 140 140 150 141 142 145 144 TRANSPORTATION EQUIPMENT: Automobiles _ 107 122 117 118 124 111 107 93 105 122 120 120 121 130 Locomotives 1 3 6 9 9 8 6 5 8 10 8 11 22 LEATHER AND PRODUCTS 108 112 113 103 114 115 112 112 116 134 136 134 131 P129 Tanning 93- 97 97 91 94 95 90 93 104 108 108 '•106 103 Cattle hide leathers 95 94 93 84 93 97 91 100 111 111 111 108 106 Calf and kip leathers 77 85 78 88 77 70 68 65 79 98 90 92 85 Goat and kid leathers 103 115 124 113 117 113 109 103 112 111 119 114 115 Boots and shoes . - _ 118 122 124 110 127 129 127 125 124 151 154 152 150 P145 CEMENT AND GLASS: Cement 58 72 74 75 75 77 81 87 91 91 86 85 93 Glass, plate 184 213 220 218 220 226 236 242 164 89 77 244 229 241 NONFERROUS METALS: Tin deliveries1 95 101 98 112 128 107 99 105 97 105 125 131 144 138 Zinc 85 91 94 103 104 99 97 101 100 98 80 83 107 110 Lead 59 70 75 69 71 60 60 71 74 80 76 70 75 85 FUELS, MANUFACTURED: Petroleum refining 168 178 180 181 183 186 189 191 188 191 189 194 190 Gasoline *' 210 223 227 233 236 241 246 249 241 242 236 245 242 Kerosene 98 104 97 98 96 91 90 90 92 102 117 106 108 Fuel oilJ 119 119 120 117 117 119 119 124 124 132 135 130 126 Lubricating oil * 105 116 116 108 110 111 111 110 114 116 111 126 120 Coke, byproduct 100 112 120 123 121 126 128 129 130 136 137 136 138 141 RUBBER TIRES AND TUBES 1 85 113 121 130 124 119 122 118 126 123 123 133 Tires, pneumatic 1 87 117 125 135 129 123 125 121 130 128 128 138 Inner tubes 1 67 86 89 90 90 92 96 94 92 91 91 99 TOBACCO PRODUCTS 140 152 145 147 154 147 157 146 150 183 165 168 153 158 Cigars 71 74 71 70 76 73 75 74 75 83 83 78 83 82 Cigarettes 193 214 204 209 216 208 223 202 209 265 234 242 212 220 Minerals—Total 97 106 102 100 101 99 102 105 112 117 109 115 128 P114 Bituminous coal 71 84 76 74 79 76 82 86 95 97 83 98 112 Anthracite 54 69 77 72 69 51 58 52 69 73 56 50 81 P95 Petroleum, crude 146 150 149 146 144 149 146 152 152 161 164 168 173 P174 Iron ore 80 80 81 87 93 98 no Zinc 85 91 94 103 104 99 97 101 100 98 80 83 107 110 Lead „ . .. 59 70 75 69 71 60 60 71 74 80 76 70 75 85 Silver 90 96 91 103 101 88 111 119 99 113 99 94 93 1 Without seasonal adjustment. P Preliminary. r Revised. NOTE.—For description see BULLETINS for February and March 1927. For latest revisions see BULLETINS for March 1932, pp. 194-196, September 1933, pp. 584-587, November 1936, p. 911, and March 1937, p. 255. 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. 1935 1936 * Revised indexes Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Textiles. _ 103 100 99 98 102 100 104 104 106 112 107 Ill 105 102 Wool 102 97 95 109 123 121 127 131 111 125 118 113 107 111 Consumption.__ _ _ 115 97 102 130 152 148 156 160 126 146 134 125 118 121 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

604 FEDERAL RESERVE BULLETIN JUNE 1937 INDUSTRIAL PRODUCTION, BY INDUSTRIES (UNADJUSTED INDEXES) [Index numbers of the Board of Governors; without seasonal adjustment. ]923-25 average =100] 1936 1937 Industry Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. Manufactures—Total 97 105 105 105 105 106 107 110 115 114 113 118 122 P124 IRON AND STEEL1 94 111 114 112 110 118 117 123 127 125 134 135 142 144 Pig iron. ._ _ 67 82 87 88 85 89 93 98 100 102 105 109 114 115 Steel ingots2 96 113 117 115 113 121 120 126 130 128 136 138 145 146 TEXTILES* 102 102 100 101 107 112 120 117 125 132 130 134 132 Cotton consumption 105 112 106 106 114 112 123 122 128 133 135 141 143 140 Wool* 97 88 92 97 99 110 111 111 125 141 123 135 129 P116 Consumption* 106 90 94 108 111 126 127 120 140 161 130 144 141 Machinery activity. 99 96 102 95 98 101 97 104 118 134 130 137 125 P117 Carpet and rug loom activity- 68 68 68 66 66 77 89 95 92 94 92 104 101 Silk deliveries 103 101 96 90 103 123 136 121 129 119 135 120 110 119 FOOD PRODUCTS 86 85 82 87 90 87 90 95 104 101 91 86 91 94 Slaughtering and meat packing.__ 78 80 81 84 87 85 94 104 121 117 100 85 84 83 Hogs 62 61 64 65 64 53 59 80 110 111 87 73 69 69 Cattle 95 101 101 106 115 126 138 134 133 122 112 95 99 99 Calves... __ __ 116 126 126 124 126 130 138 135 124 119 121 114 137 141 Sheep 137 126 126 131 135 139 165 167 167 157 176 142 126 133 Wheat flour 86 80 82 83 98 99 91 92 90 84 85 86 83 87 Sugar meltings 113 110 87 106 94 79 75 65 65 66 64 88 127 143 PAPER AND PRINTING: Newsprint production . 61 61 60 64 59 59 60 62 66 64 64 62 63 63 Newsprint consumption 138 141 140 135 117 121 137 149 160 145 137 143 149 r TRANSPORTATION EQUIPMENT: Automobiles 124 148 142 134 128" 82 42 65 127 147 120 120 140 158 Locomotives 1 3 6 9 9; 9 6 5 9 11 7 11 22 F. LEATHER AND PRODUCTS 112 110 104 99 113 128 130 123 112 114 126 136 136 P126 Tanning 92 95 91 90 94 96 95 98 102 105 104 110 102 Cattle hide leathers 96 94 88 83 90 95 94 102 109 108 112 116 107 Calf and kip leathers 69 76 74 86 90 85 78 77 75 84 75 85 76 Goat and kid leathers 105 114 116 113 109 111 114 107 111 120 lie 119 117 Boots and shoes 124 119 113 105 125 148 153 140 118 119 140 153 157 P142 CEMENT AND GLASS: Cement 42 70 88 93 91 100 101 99 90 71 52 51 67 Glass, plate 194 235 231 196 198 226 236 242 164 89 77 244 241 265 NONFERROUS METALS: Tin deliveries _ 95 101 98 112 128 107 99 105 97 105 125 131 144 138 Zinc 90 95 95 98 97 92 93 98 100 100 85 89 113 114 Lead . 60 69 73 70 68 58 57 73 77 81 77 72 C77 84 FUELS, MANUFACTURED: Petroleum refining 168 178 179 181 182 186 189 192 189 192 189 194 190 Gasoline 210 223 227 233 236 241 246 249 241 242 236 245 242 Kerosene 95 103 93 91 90 86 92 95 100 111 119 108 104 Fuel oil.. . 119 119 120 117 117 119 119 124 124 132 135 130 126 Lubricating oil 105 116 116 108 110 111 111 110 114 116 111 126 120 Coke, byproduct 103 114 119 121 118 122 125 129 133 138 138 140 142 142 RUBBER TIRES AND TUBES 85 113 121 130 124 119 122 118 126 123 123 133 Tires, pneumatic 87 117 125 135 129 123 125 121 130 128 128 138 Inner tubes. _ _ 67 86 89 90 90 92 96 94 92 91 91 99 TOBACCO PRODUCTS 132 140 147 161 167 158 173 157 153 149 156 153 146 145 Cigars 64 70 73 76 80 76 86 91 90 62 64 67 76 77 Cigarettes 183 195 206 230 238 225 245 212 207 217 230 220 201 200 Minerals—Total 90 95 101 101 102 104 110 115 115 111 105 111 118 P104 Bituminous coal .71 71 67 66 72 75 87 94 106 103 93 103 112 A Pe n t t r h o r l a e c u i m te , crude ... . 14 4 5 4 15 7 0 2 15 7 0 7 14 6 9 2 14 5 7 7 15 5 2 1 15 5 0 8 15 6 3 7 15 7 0 1 15 7 6 2 15 6 8 1 16 5 5 4 17 6 1 7 P1 P 7 9 4 9 Iron ore 120 157 164 177 178 167 93 Zinc.... 90 95 95 ••98 97 '92 93 98 100 100 85 89 113 114 Lead 60 69 73 70 68 58 57 73 77 81 77 72 77 84 Silver _ 99 97 88 101 85 88 106 118 106 114 100 102 102 p Preliminary. *• Revised. c Corrected. i February 1936 revised: 86. 2 January 1936 revised: 84. NOTE.—For description see BULLETINS for February and March 1927. For latest revisions see BULLETINS for March 1932, pp. 194-196, September 1933, pp. 584-587, and March 1937, p. 256. 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. 1935 1936 * Revised indexes Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Textiles 108 106 100 100 101 94 97 99 106 116 Ill 105 110 108 Wool 103 101 96 107 116 114 118 125 114 133 124 114 109 117 Consumption. 118 105 104 126 140 133 139 149 133 160 146 126 121 132 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1937 FEDERAL RESERVE BULLETIN 605 FACTORY EMPLOYMENT, BY INDUSTRIES (ADJUSTED FOR SEASONAL VARIATION) [Index numbers of the Board of Governors adjusted to Census of Manufactures through 1933. 1923-25 average=100] 1936 1937 Industry and group Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. Total 87.7 90.4 92.8 93.4 94.4 96.2 98.6 99.7 100. 9 101.7 Durable goods 80.1 81.2 82.7 83.8 85.6 85.7 88.2 89.9 92.7 92.4 93.9 96.3 97.4 Nondurable goods. 95.8 96.5 97.3 97.6 100.4 101.8 101.6 101.2 102.9 104. 9 105.4 105.8 105. 9 106.3 IRON, STEEL PRODUCTS 85.3 87.1 89.0 90.8 93.5 95.3 96.8 99.6 101.0 102.3 103.7 106.4 108.1 Blast furnaces, steel works. _ 92 94 97 99 103 106 108 109 109 110 113 112 116 119 Bolts, nuts, washers, rivets. 71 74 74 75 76 76 77 79 81 84 87 89 90 93 Cast-iron pipe ___ 60 62 62 62 64 64 65 66 67 68 68 69 71 73 Cutlery, edge tools 77 75 76 76 78 79 80 82 84 87 89 87 87 87 Forgings 54 56 58 59 62 60 60 61 64 68 70 69 73 Hardware _- 77 78 77 77 79 72 75 84 91 95 96 99 99 Plumbers' supplies 84 86 87 84 82 85 85 85 86 90 90 95 98 Steam, hot-water heating.._ 61 63 65 65 69 69 71 70 71 72 76 78 80 82 Stoves 97 97 97 103 103 107 104 107 107 111 114 117 116 112 Structural, ornamental 59 62 65 67 70 72 73 73 73 70 73 75 76 78 Tin cans, tinware 96 97 99 99 98 101 101 100 98 97 103 105 104 105 Tools 79 78 78 80 81 86 86 89 93 95 98 99 101 101 Wirework 146 148 151 148 146 143 149 164 175 188 179 176 187 186 MACHINERY 99.3 102.2 103.9 105.3 105.3 106.8 108.4 110.4 114.0 116.0 118.9 121.1 123. 5 A gricultural implements 123 124 125 126 117 101 96 102 95 103 109 113 125 132 Cash registers, etc 116 118 119 112 114 100 116 119 120 121 123 127 131 131 Electrical machinery 82 86 90 92 92 97 100 103 106 104 109 111 114 p]ngines, turbines, etc 119 122 124 119 115 115 117 122 125 128 134 137 140 Foundry, machine-shop products. 84 85 90 92 93 95 96 97 100 102 104 106 107 Machine tools 109 112 114 116 120 119 123 125 127 129 136 136 141 147 Radios, phonographs 179 185 198 209 210 209 186 176 171 188 201 196 1C0 187 Textile machinery 69 68 70 70 71 73 75 75 75 76 79 81 83 85 Typewriters 112 113 114 87 102 114 120 132 135 139 145 148 153 154 TRANSPORTATION EQUIPMENT 97.7 99.2 101.3 102.2 105.1 100.9 100.8 105.0 112.3 118.7 110.2 113.0 117.3 119.1 Aircraft 509 533 571 564 603 613 631 645 646 698 740 772 783 793 Automobiles 108 109 112 112 116 109 109 113 123 133 120 123 127 129 Cars, electric, steam railroad.. 50 51 50 53 52 56 56 61 64 62 62 66 71 69 Locomotives 27 28 31 34 36 35 38 41 42 44 49 54 54 55 Shipbuilding 92 101 102 102 102 98 89 95 100 106 106 RAILROAD REPAIR SHOPS. 58.0 57.0 57.0 57.4 58.7 59.1 60.1 60. 6 61.7 62.3 61.9 62.2 62.6 Electric railroad 62 63 62 62 62 62 62 63 63 63 63 63 64 64 Steam railroad 58 57 57 58 57 58 59 60 60 62 62 62 62 63 NONFERROUS METALS, PRODUCTS.. 93.4 94.6 97.8 101.1 102. 5 105. 2 106. 7 110.7 109.6 111.7 113.2 114.4 Aluminum 100 100 102 109 116 116 112 115 118 118 121 121 119 121 Brass, bronze, copper 97 97 99 100 102 106 109 110 111 115 120 122 122 126 Clocks, watches 105 104 105 106 107 113 112 114 115 117 120 120 122 124 Jewelry 76 75 78 78 84 88 87 88 91 91 90 to 90 Lighting equipment 73 71 76 76 75 79 84 89 94 99 75 104 100 Silverware, plated ware 64 63 62 61 59 66 67 70 70 71 72 73 73 74 Smelting, refining 78 77 76 78 79 78 79 78 78 80 80 79 81 85 Stamped, enameled ware 131 135 135 139 136 141 143 153 154 166 163 159 161 158 LUMBER PRODUCTS 62.8 63.5 64.1 64.2 65.6 65.1 65.8 66.2 66.2 67. 9 68.8 71.4 71.4 Furniture 72 74 75 76 79 81 82 81 84 86 89 87 88 90 Lumber, millwork. 46 47 47 49 48 51 52 53 54 55 57 57 58 58 Lumber, sawmills.. 50 51 51 50 51 49 50 50 49 51 50 50 54 53 STONE, CLAY, GLASS PRODUCTS _. 60.8 61.9 62.5 63. 0 65.7 66.4 66.1 67.2 66.3 69. 0 69.5 72.6 72.6 72.1 Brick, tile, terra cotta 42 43 44 45 47 47 47 47 48 51 54 55 54 54 Cement 53 54 55 54 55 59 61 64 65 68 68 68 70 67 Glass 96 97 96 101 102 99 103 96 101 98 109 109 108 Marble, granite, slate 37 39 41 42 43 42 42 42 42 43 43 43 Pottery.. 72 71 71 73 76 74 77 76 75 76 77 77 TEXTILES, PRODUCTS 96.7 97.6 97.6 98.1 102.6 104.9 102.6 101.7 104.4 106. 8 108.3 107.3 107.0 108.0 A. Fabrics • 90.6 91.8 91.3 91.8 95.5 98.1 96.8 95.5 97.3 100. 1 101.7 100.7 101.1 103. 8 Carpets, rugs 81 81 83 83 83 85 92 92 93 99 101 101 99 100 Cotton goods 88 89 90 95 99 99 97 98 99 101 102 103 105 Cotton small wares 91 91 94 96 101 99 101 104 106 107 102 102 103 Dyeing, finishing textiles. 113 116 115 116 117 117 114 115 117 121 120 117 116 119 Hats, fur-felt 84 85 88 93 91 85 81 82 87 89 so 89 88 86 Knit goods 114 114 113 112 118 121 121 117 116 119 123 123 122 122 Silk, rayon goods 74 78 76 78 79 81 78 79 79 81 79 SO 85 Woolen, worsted goods... 82 84 80 80 83 81 77 78 92 93 85 88 94 B. Wearing apparel 108. 2 108. 4 109.5 110.3 116.6 117.0 113.6 113.4 118.4 119.8 120.9 119.8 117.9 115.1 Clothing, men's 104 104 105 107 109 106 104 105 111 115 114 111 no 112 Clothing, women's 144 143 146 144 159 167 157 155 163 160 159 161 146 Corsets, allied garments.. 85 86 85 86 87 88 88 89 91 92 93 91 156 88 Men's furnishings 116 118 123 130 141 138 133 130 134 135 140 141 £0 140 Millinery 57 55 55 54 60 60 57 55 53 51 57 57 141 53 Shirts, collars 109 109 111 115 118 116 117 119 124 132 129 58 124 129 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

606 FEDERAL RESERVE BULLETIN JUNE 1937 FACTORY EMPLOYMENT, BY INDUSTRIES (ADJUSTED FOR SEASONAL VARIATION)—Continued [Index numbers of the Board of Governors; adjusted to Census of Manufactures through 1933. 1923-25 average = 100] 1936 1937 Industry and group Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr, LEATHER PRODUCTS . 90.4 89.2 89.0 89.0 90.3 90.9 91.4 92.0 94.9 99.1 97.4 96.5 Boots, shoes 91 89 89 89 91 91 91 92 95 100 101 100 99 97 Leather 94 94 95 94 94 97 97 97 100 ^ FOOD PRODUCTS 107.8 107.7 109.3 110.3 112.4 113.2 113.3 112.7 113.4 115.0 114.8 116.7 117.0 116.3 Baking 127 127 127 127 129 129 129 131 132 132 133 135 136 134 Beverages 182 178 189 183 196 195 196 187 197 197 203 202 205 199 Butter 83 84 85 86 86 85 82 82 82 84 86 88 88 Canning, preserving 133 131 137 147 140 141 148 146 135 147 148 157 152 Confectionery 76 77 77 77 78 82 78 76 80 81 83 81 80 Flour 76 76 74 74 77 76 74 74 73 74 75 75 75 77 Ice cream 68 71 74 72 72 70 72 69 70 72 71 73 73 73 Slaughtering, meatpacking- 84 84 85 86 92 92 92 91 96 95 93 91 93 91 Sugar, beet 86 90 84 92 109 111 118 114 93 44 89 95 98 Sugar refining, cane 80 81 80 78 79 76 74 67 70 64 78 77 84 TOBACCO MANUFACTURES.. 59.4 61.3 60.3 61.2 61.9 61.7 61.1 62.4 62.0 62.0 61.8 61.7 60.8 Tobacco, snuff 56 56 56 56 56 56 56 57 57 56 56 57 56 56 Cigars, cigarettes 61 62 61 62 63 62 62 63 63 63 62 62 61 PAPER, PRINTING 99.0 99.8 100.0 101.1 102.7 103.1 103.6 104.0 104.0 105.5 107.4 107.5 Boxes, paper 93 93 94 95 97 99 100 100 103 103 104 106 106 Paper, pulp 108 109 109 109 108 109 110 111 112 113 114 116 118 119 Book, job printing 88 88 89 90 91 93 94 94 95 94 94 96 98 97 Newspaper, periodical printing... 102 103 103 103 101 102 105 105 104 104 103 104 105 105 CHEMICALS, PETROLEUM PRODUCTS __ 111.6 110.8 113.1 113.2 115.7 115.4 118.5 117.9 118.1 118.6 120.7 121.6 122.5 124.6 A. Other than petroleum 110.6 109.1 112.0 112.2 114.6 114.9 118.1 117.4 117.4 118.3 120.9 121. 122.7 124.8 Chemicals 116 116 117 117 121 122 126 129 129 129 133 133 135 136 Cootttoonnseeeedd oo,i l, caa, ke, meaeal 73 68 71 62 61 53 78 71 77 75 85 80 67 77 DDruiggti' sts' prepartaitions 102 103 104 105 105 102 101 100 102 105 105 109 111 113 Exxpploosisvees 84 82 79 84 88 89 91 90 93 91 94 92 90 95 Ferttiilliizers 79 74 91 86 87 87 86 85 80 87 87 86 88 94 Paints, varnishes 121 123 122 124 126 127 129 129 127 130 131 133 135 136 Rayon, allied products 343 325 342 350 358 360 360 354 357 355 364 363 370 378 Soap 95 94 96 97 95 103 106 103 100 100 102 110 111 106 B. Petroleum refining. 116 118 118 117 120 117 120 119 121 120 120 121 122 124 RUBBER PRODUCTS 74.9 87.1 87.4 91.4 93.9 95.8 99.4 102.2 102.3 101.7 96.0 Rubber boots, shoes 72 78 75 73 78 75 75 75 74 76 75 73 82 86 Rubber goods, other 118 121 122 123 124 124 126 130 133 138 140 140 142 145 Rubber tires, inner tubes. 57 75 76 79 82 87 92 95 95 94 80 79 NOTE.—Figures for April 1937 are preliminary. For description and back data see pages 950-978 of the BULLETIN for December 1936 and page 259 of the BULLETIN for March 1937. Underlying figures are for pay-roll period ending nearest middle of month. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1937 FEDERAL RESERVE BULLETIN 607 FACTORY EMPLOYMENT AND PAY ROLLS, BY INDUSTRIES (WITHOUT SEASONAL ADJUSTMENT) [Index numbers of the Bureau of Labor Statistics;adjusted to Ceiisus of Manufactures through1933. 1923-25 average=100] Factory employment Factory pay rolls Industry and group 1936 1937 1936 1937 Mar. Apr. Dec. Jan. Feb. Mar. Apr. Mar. Apr. Dec. Jan. Feb. Mar. Apr. Total 87.9 89.1 98.1 96.5 99.0 101.1 102.2 77.6 79.3 95.2 90.7 95.8 101.1 104.8 Durable goods 80.2 82.3 92.7 90.3 93.2 96.4 98 7 71 8 76 0 93 1 86 5 92 5 100 0 106 2 Nondurable goods 96.1 96.3 104.0 103.1 105.2 106.1 106.0 84.9 83.5 97.6 95.9 99. 9 102.6 103.0 IRON STEEL PRODUCTS 85.6 87.8 100.4 100.0 103.4 106.8 109.0 75.4 79.7 103. 2 99.8 103.9 112.6 123.4 Blast furnaces, steel works 93 96 109 112 114 117 120 83 89 115 116 119 127 144 Bolts, nuts, washers, rivets 71 74 84 87 89 90 93 69 78 98 98 106 108 116 Cast-iron pipe 59 61 67 68 67 69 71 38 41 53 51 52 56 62 Cutlery, edge tools 79 77 87 87 88 89 90 65 66 85 80 81 84 86 Forgings 57 57 68 69 71 73 74 48 49 68 65 68 72 76 Hardware 78 78 96 80 97 100 100 74 77 116 82 90 117 114 Plumbers' supplies 85 84 87 91 91 96 96 62 58 70 69 68 80 79 Steam, hot-water heating 61 63 73 74 80 82 49 50 67 69 75 79 85 Stoves 94 99 108 97 108 113 114 79 80 96 77 97 102 106 Structural, ornamental 57 61 70 71 72 74 76 46 51 66 63 68 72 78 Tin cans, tinware. __ _ 92 94 94 96 98 100 103 91 91 94 94 99 104 108 Tools 79 79 96 98 100 102 102 79 79 105 103 109 111 116 Wirework _ _- 146 148 188 179 176 187 186 131 137 183 161 156 180 185 MACHINERY 96.9 99.6 114.1 114.9 118.6 121.2 124.1 86.8 91.2 113.6 111.0 118.2 125.5 133.3 Agricultural implements 129 131 103 111 119 132 139 144 146 122 132 140 162 181 Cash registers, etc. 118 121 123 127 131 131 106 111 123 121 130 140 148 Electrical machinery 82 86 106 104 109 111 114 73 78 103 97 107 112 120 Engines turbines, etc. 121 126 124 125 135 140 144 107 110 118 120 131 139 152 Foundry, machine-shop products- 84 87 99 101 104 107 110 75 79 100 99 105 112 118 Machine tools 111 112 131 135 138 143 147 1Q2 103 136 137 142 153 159 Radios, phonographs 154 156 203 187 171 163 157 105 113 168 146 124 127 126 Textile machinery 71 70 77 80 83 85 87 66 64 79 83 88 90 96 Typewriters 112 113 144 146 147 153 154 94 98 138 131 138 153 157 TRANSPORTATION EQUIPMENT 100. 9 104.9 122.1 112.7 116.0 121.0 125.9 87.0 99.9 120.9 100.7 112.3 123.6 128.6 Aircraft 514 544 691 725 756 791 809 420 442 620 606 652 703 738 Automobiles 113 116 139 125 127 132 137 94 109 136 108 122 132 136 Cars, electric, steam railroad. 50 55 57 56 63 70 74 46 52 60 59 67 79 88 Locomotives 27 29 44 45 50 54 58 16 18 31 31 37 41 45 Shipbuilding _ __ 93 102 90 95 99 107 109 91 102 91 97 98 116 123 RAILROAD REPAIR SHOPS 58.0 57.8 61.2 61.2 61.6 62.2 63.5 60.9 58.6 65.5 61.2 63.4 65.8 67.9 Electric railroad 62 63 63 63 63 64 64 64 63 67 65 65 67 67 Steam railroad. 58 57 61 61 62 62 64 61 58 66 61 63 66 68 NONFERROUS METALS, PRODUCTS 94.6 94.4 111.6 106. 9 111.5 114.6 115.6 77.6 77.8 105.5 97.1 103.5 111.8 115.6 Aluminum __ 104 103 118 119 122 124 124 93 92 115 115 122 130 131 Brass, bronze, copper 99 99 116 119 122 124 128 80 81 112 113 120 128 132 Clocks, wTatches 105 103 121 118 120 122 123 91 88 118 109 111 120 137 Jewelry 75 73 93 84 89 89 88 51 50 75 62 66 69 68 Lighting equipment 73 72 101 73 97 104 101 62 64 104 69 90 109 107 Silverware, plated ware ._ 65 64 74 69 72 74 74 51 48 71 58 63 68 69 Smelting, refining 78 77 81 80 79 81 85 62 60 70 69 69 75 83 Stamped enameled ware 135 139 162 155 159 165 163 122 127 164 148 15o 163 165 LUMBER PRODUCTS __ 61.3 62.8 67.1 65.0 65.8 69.8 70.5 50.3 52.3 60.5 54.9 58.2 64.6 68.2 Furniture 72 71 88 86 86 88 87 55 56 78 71 75 77 79 Lumber, millwork __ 45 47 54 54 55 57 58 38 40 51 47 50 .53 55 Lumber, sawmills 49 51 49 47 48 52 53 40 43 42 37 40 48 52 STONE, CLAY, GLASS PRODUCTS 58.9 63.0 67.1 62. 5 67.2 70.3 73.3 48.2 52.4 59.1 52.7 59.8 66.1 71.2 Brick, tile, terra cotta . 38 43 49 46 47 49 54 28 32 41 36 38 43 49 Cement 47 55 62 57 58 64 67 39 47 59 50 53 63 69 Glass _ _ _ 97 99 101 93 108 no 111 88 91 95 85 107 115 121 Marble, granite, slate 34 38 41 36 38 40 43 26 32 33 29 30 34 39 Pottery 75 75 77 75 78 81 82 60 59 65 63 68 74 72 TEXTILES, PRODUCTS 100.5 99.5 106.4 c 107.1 110.2 111.2 110.0 85. 7 81.3 94.6 94.6 100.1 103. 2 100.5 A Fabrics 93.0 91. 7 101.7 c 102. 3 103.6 103. 8 103.7 78.7 77.2 96. 8 96.0 97.6 97.5 100.3 Carpets, rugs. 84 82 98 98 100 102 102 68 67 97 96 98 103 101 Cotton goods 90 89 101 103 104 105 106 76 75 98 100 100 101 108 Cotton small wares. 93 95 106 107 107 109 108 85 89 107 104 105 109 109 Dyeing, finishing textiles 120 119 123 122 123 123 123 101 101 116 112 112 113 114 Hats, fur-felt 87 86 86 88 90 91 88 77 64 83 86 94 90 66 Knit goods 115 115 122 120 123 124 123 113 111 126 120 127 127 127 Silk, rayon goods 76 76 81 83 84 83 82 59 59 68 69 71 71 71 Woolen, worsted goods 84 80 92 93 92 90 89 65 61 84 83 82 79 84 B Wearing apparel 115.3 115.0 114.8 115.6 122.6 125.5 121.9 96. 0 86.2 86.3 88.1 100.9 110.4 96.6 Clothing, men's ___ 110 106 108 110 114 116 114 91 77 85 88 99 106 96 Clothing, women's 157 160 154 155 166 170 163 121 113 104 108 125 138 115 Corsets, allied garments . 89 DO 89 89 92 93 92 92 90 88 85 93 98 96 Men's furnishings 122 124 141 130 143 148 147 98 93 115 93 114 123 117 Millinery 65 62 45 55 62 67 60 62 51 29 41 50 65 49 Shirts, collars... 110 113 123 119 127 130 127 99 101 112 100 112 122 115 c Corrected. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

608 FEDERAL RESERVE BULLETIN JUNE 1937 FACTORY EMPLOYMENT AND PAY ROLLS, BY INDUSTRIES (WITHOUT SEASONAL ADJUSTMENT)—Continued [Index numbers of the Bureau of Labor Statistics; adjusted to Census of Manufactures through 1933. 1923-25 average=100] Factory employment Factory pay rolls Industry and group 1936 1937 1936 1937 Mar. Apr. Dec. Jan. Feb. Mar. Apr. Mar. Apr. Dec. Jan. Feb. Mar. Apr. LEATHER PRODUCTS 93.6 90.8 94.0 97.5 99.0 100.8 98.3 73.1 67.7 78.3 86.3 90.9 92.4 87.4 Boots, shoes 95 91 94 99 102 103 99 69 62 71 82 88 89 81 Leather... - 95 94 98 97 98 99 100 89 90 105 103 105 107 112 FOOD PRODUCTS _ 97.7 100.3 110.6 105.2 105.1 105.7 108.0 90.2 90.3 105.7 100.5 101.3 104.1 108.3 Baking 125 126 132 131 132 134 133 110 109 120 118 122 124 123 Beverages 171 177 181 182 182 193 197 181 187 188 188 189 211 220 Butter.-. _-_ 78 81 82 80 81 82 84 61 62 63 62 64 64 66 Canning, preserving. 78 94 97 90 92 90 111 73 81 91 86 97 90 115 Confectionery 75 72 91 80 79 79 75 68 62 86 76 76 76 72 Flour. _ 75 74 74 75 75 74 74 69 65 70 71 71 70 72 Ice cream 60 67 61 61 62 65 69 54 58 55 56 57 59 64 Slaughtering, meatpacking 82 82 99 96 91 91 89 75 75 102 96 88 92 99 Sugar, beet 35 40 173 38 37 39 44 42 42 152 42 44 45 50 Sugar refining, cane 79 81 69 62 75 76 84 70 69 59 51 81 81 TOBACCO MANUFACTURES 59.2 58.6 63.3 57.1 60.5 60.8 59.9 46.5 44.0 55.4 47.2 52.6 52.4 51.7 Tobacco, snuff ._ 56 56 56 57 59 57 56 59 57 65 64 67 66 64 Cigars, cigarettes 59 59 64 57 61 61 60 45 42 54 45 51 51 50 PAPER, PRINTING 98.7 99.1 106.0 104.3 105.7 107.1 107.2 89.3 89.8 102.6 98.7 100.5 104.1 104. 8 Boxes, paper 91 91 106 100 102 104 104 86 85 108 98 103 107 108 Paper, pulp __. 108 109 113 114 116 118 119 94 96 109 110 114 117 120 Book, job printing 88 88 97 96 98 98 97 80 80 93 91 91 94 94 Newspaper, periodical printing.__ 103 104 106 103 104 106 106 96 97 105 97 99 103 104 CHEMICALS, PETROLEUM PRODUCTS.._ 113.8 112.3 119.3 120.2 121.9 124.9 126.6 104.5 103.8 118.3 119.4 123.6 128.1 136.0 A. Other than petroleum 113.6 111.3 119.3 120.4 122.4 126.0 127.7 103.0 102. 5 118.0 119.4 123.9 128.8 135.6 Chemicals 115 116 129 131 131 134 135 107 109 133 132 135 140 149 Cottonseed oil, cake, meal 75 52 98 91 82 69 59 56 37 82 76 67 59 50 Druggists' preparations 103 102 107 107 110 112 112 107 104 113 113 119 121 121 Explosives 84 80 93 94 93 90 92 82 74 98 98 93 98 108 Fertilizers 123 120 80 87 96 136 1.52 101 101 72 78 87 128 150 Paints, varnishes 121 125 128 128 131 • 135 138 109 114 122 120 127 133 142 Rayon, allied products 346 325 362 368 370 373 378 282 269 321 338 345 350 365 Soap 95 95 99 100 110 111 107 93 92 104 107 125 123 114 B. Petroleum refining 115 117 120 119 120 121 122 110 108 120 120 123 126 137 RUBBER PRODUCTS 75.4 87.9 101.9 101.3 101.6 96. 7 97.4 66. 7 82.8 104.8 99.4 104. 4 99.8 101.6 Rubber boots, shoes 71 72 83 77 73 80 79 56 55 77 67 65 72 71 Rubber goods, other 120 123 138 139 142 144 147 106 111 139 136 141 146 153 Rubber tires, inner tubes _ 57 78 93 93 93 81 81 56 80 100 95 101 90 91 NOTE.—Figures for April 1937 are preliminary. For description see pages 950-953 of the BULLETIN for December 1936. Back data may be obtained from the Bureau of Labor Statistics. Underlying figures are for pay-roll period ending nearest middle of month. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

609 JUNE 193? FEDERAL PRESERVE BULLETIN 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 1936 1937 1936 1937 1936 1937 1936 1937 1936 1937 1936 1937 1936 1937 January _ _ 214.8 242.8 37.4 78.4 9.0 37.0 15.5 21.6 86.9 68.5 39.5 19.6 26.5 17.8 February 140.4 188.3 31.2 63.0 13.4 12.6 12.6 22.3 46.6 59.6 21.1 11.3 15.5 19.4 March 198.8 231.2 55.2 90.2 18.4 22.2 17.3 30.0 62.3 52.5 19.0 10.0 26.6 26.4 April 234.6 269. 9 67.2 108.0 25.5 30.1 24.3 28.7 73.4 65.7 23.2 14.0 21.1 23.4 May 216.1 70 3 12 9 18 8 63.6 20.7 29 8 June 232. 7 73.6 10.2 21.9 80.0 18.3 28.7 July 294.7 72 0 19 1 28.6 126.6 23.3 25 1 August 275.3 100. 5 15.0 22.0 94.4 12.3 31.1 S O e c p to te b m er ber 2 22 3 5 4 . 8 3 8 7 0 9 . 7 7 1 1 8 8. . 4 8 2 2 0 2 .0 1 8 6 4 7 .0 5 1 9 3 . . 2 4 2 2 5 1 .3 0 November 208.2 68.4 14.1 23.0 73.9 13.1 15 7 December 199.7 65.5 23.1 23.2 61.3 13.0 13.6 Year 2, 675. 3 801.6 198.0 249.1 920. 4 226.1 280.0 CONSTRUCTION CONTRACTS AWARDED, BY TYPES OF FINANCING [Figures for 37 States east of the Rocky Mountains, as reported by the F. W. Dodge Corporation. Value of contracts in millions of dollars.] Total Publicly financed! Privately financed1 Month 1932 1933 1934 1935 1S36 1937 1932 1933 1934 1935 1936 1£37 1932 1933 1934 1935 1936 1937 January 85 S3 186 1C0 215 243 39 39 157 55 • 149 112 45 44 29 45 66 130 February 89 53 97 75 140 188 34 27 C5 38 79 ••69 55 26 31 37 62 119 March 112 60 178 123 199 231 45 25 126 68 96 66 67 35 52 55 103 165 April 122 57 131 124 235 270 61 18 78 53 105 74 61 39 53 71 130 196 May 146 77 134 127 216 93 72 47 94 54 53 63 80 122 June 113 102 127 148 233 64 29 73 64 116 49 74 54 84 116 July 129 83 120 159 295 85 20 52 67 153 44 63 67 93 141 August 134 106 120 169 275 81 47 69 92 153 53 59 51 76 122 September 128 120 110 167 234 80 71 69 97 116 47 49 41 70 119 October 107 145 135 201 226 61 1C0 79 114 101 46 45 57 87 125 November 105 162 112 188 208 73 126 74 118 89 32 36 38 70 119 December 81 207 93 264 200 52 156 61 196 82 ' 29 51 32 68 117 Year 1,351 1,256 1,543 1,845 2, 675 768 683 975 l,C07 1,334 583 573 568 837 1,341 »• Revised. i Data for years prior to 1932 not available. CONSTRUCTION CONTRACTS AWARDED, BY COMMERCIAL FAILURES, BY DISTRICTS DISTRICTS [Figures reported by Dun & Bradstreet. Amounts in thousands of [Figures for 37 States east of the Rocky Mountains, as reported by the dollars.] F. W. Dodge Corporation. Value of contracts in thousands of dollars.] Number Liabilities 1936 Federal Reserve district Federal Reserve 1937 1936 1937 1936 Apr. Mar. Apr. district Apr. Mar. Apr. Apr. Mar. Apr. Boston 18, 080 14, 308 19, 952 New York 57, 896 4'4, 658 45, 128 Philadelphia. 15, 594 11,772 14, 810 Boston. _ 69 79 80 664 721 1,688 Cleveland 25,917 26, 713 24.184 New York 252 249 273 2, 965 3,042 4, 542 Richmond 32, 372 24, 372 19, 230 Philadelphia 43 40 47 385 1,347 476 Atlanta 17, 664 19, 287 20, 275 Cleveland.. _ 63 68 61 1,343 702 1,452 Chicago 47, 336 47, 502 37, 252 Richmond 36 53 37 348 359 437 St. Louis 16,055 16,417 16,737 Atlanta _ 35 38 29 355 414 1,634 Minneapolis 9,168 6, 867 8,561 Chicago 105 115 104 1,160 1, 565 1,725 Kansas City 17,237 8. 350 10, 940 St. Louis . 21 26 25 207 276 296 Dallas 12,617 11,000 17, 562 Minneapolis 15 14 25 1.12 90 221 Kansas Citv 29 51 35 195 778 226 Total (11 districts) 269, 934 231, 246 234, 632 Dallas .. 16 9 17 344 129 520 San Francisco 102 78 97 828 1, 499 940 Total 786 820 830 8, 906 10, 922 14,157 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

610 FEDERAL RESERVE BULLETIN JUNE 1937 MERCHANDISE EXPORTS AND IMPORTS [In millions of dollars] Merchandise exports * Merchandise imports» Excess of exports Month 1933 1934 1935 1936 1937 1933 1934 1935 1936 1937 1933 1934 1935 1936 1937 January 121 172 176 199 222 96 136 167 187 240 25 37 9 11 r—18 February _ 102 163 163 182 233 84 133 152 193 278 18 30 11 -11 -45 March 108 191 185 195 256 95 158 177 199 308 13 33 8 -4 -51 April 105 179 164 193 ?269 88 147 171 203 P287 17 33 —6 —10 P-18 May 114 160 165 201 107 155 171 192 7 6 -5 r9 June 120 171 170 186 122 136 157 "191 -2 34 13 -5 July _ _ 144 162 173 180 143 127 177 r195 1 34 —3 r—15 August 131 172 172 179 155 120 169 193 -23 52 3 —14 September 160 191 199 r221 147 132 162 216 13 60 37 r5 October 193 206 221 265 161 130 189 213 42 77 32 52 November 184 195 270 226 129 151 169 196 56 44 100 r30 December 193 171 223 230 134 132 187 245 59 38 37 -15 Year 1,875 2,133 2,283 '2, 456 1,450 1,655 2,047 '2, 422 225 478 235 p Preliminary. r Revised. i Including both domestic and foreign merchandise. • General imports, including merchandise entered for immediate consumption and that entered for storage in bonded warehouses. Source: Bureau of Foreign and Domestic Commerce. Back figures.—See BULLETIN for January 1931, p. 18, and for July 1933, p. 431. FREIGHT-CAR LOADINGS, BY CLASSES [Index numbers; 1923-25 average=100] 1936 1937 Apr. Dec. Jan. Feb. Mar. Apr. Adjustec for seasonalvariation Total 71 83 80 82 83 Coal _____ 77 82 78 77 87 Coke 69 88 83 76 92 Grain and grain products- 74 83 73 70 68 Livestock 42 46 43 41- 42 Forest products 41 54 48 51 51 Ore. _ _____ 65 92 117 114 114 Aliscellaneous 76 92 90 95 94 Merchandise l~. _____ 64 69 67 68 69 Total Coal Coke Grain and grain products... Livestock _ __ Forest products Ore Miscellaneous Merchandise 1 __ __ GO OO DEPARTMENT STORES—SALES, STOCKS Index numbers based on value figures; 1923-25 average=100] 1[ndex of sales l Index o m f s o to n c th k ) s (end of Month fo A r d s j e u a s s t o e n d al W sea it s h o o n u al t fo A r d s j e u a s s t o e n d al W sea it s h o o n u a t l variation adjustment variation adjustment 1936 1937 1936 1937 1936 1937 1936 1937 102 70 January 81 93 63 72 66 74 88 66 43 February 83 95 66 76 66 76 62 72 49 March _ 84 93 77 90 65 76 67 78 249 91 April 84 93 85 89 65 76 68 79 69 May 87 89 66 67 June 87 84 64 62 Without seasonal adjustment July 91 63 64 59 August 86 68 67 65 September 88 94 68 71 68 77 73 76 80 79 64 92 89 91 92 68 October _ 90 100 69 76 58 97 97 102 96 86 November 94 105 71 80 66 71 65 64 62 63 December 92 161 71 67 38 45 42 34 34 39 42 46 42 49 52 51 Year 88 67 27 23 26 27 29 102 79 84 78 82 90 94 65 66 64 66 69 70 i Based throughout on figures of daily average sales—with allowance for changes from month to month in number of Saturdays and in num- 1 In less-than-carload lots. b al e l r o w of a n S c u e n i d n a y M s a a r n c d h h a o n l d id A ay p s r . i l A fo d r j u th s e tm e e ff n e t c t f s o r u s p e o a n s o s n a a le l s v a o r f i a c t h io a n n g m e a s k i e n s NOTE.—Revised indexes. For description and back data see pages the date of Easter. 522-529 of this BULLETIN. Basic data compiled by Association of American Railroads. Indexes based on daily average loadings. Total Back figures.—Department store sales, see p. 631 of BULLETIN for index compiled by combining indexes for classes with weights derived August 1936; department store stocks, see pp. 254-255 of BULLETIN for from revenue data of the Interstate Commerce Commission. April 1935. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1937 FEDERAL RESERVE BULLETIN 611 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 o ie m l d s l i - - F p u r a c o r t m d s - Foods Total H p l i r e d o a e d t s h u a e c r n ts d pr T o e d x u ti c le ts m F li a u g t e e h l r t i i a 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 l m B a u t i e l r d i i a n l g s c C a d l h r s e u m a g n s i d - i f n H u g r o n g u i o s s o e h d - - s l M an is e c o e u l s - 1929 95.3 104.9 91.6 109.1 90.4 83.0 100.5 95.4 94.2 94.3 82.6 1930 86.4 88.3 90.5 85.2 100.0 80.3 78.5 92.1 89.9 89.1 92.7 77.7 1931 73.0 64.8 74.6 75.0 86.1 66.3 67.5 84.5 79.2 79.3 84.9 69.8 1932 64.8 48.2 61.0 70.2 72.9 54.9 70.3 80.2 71.4 73.5 75.1 64.4 1933 65.9 51.4 60.5 71.2 80.9 64.8 66.3 79.8 77.0 72.6 75.8 62.5 1934 74.9 65.3 70.5 78.4 72.9 73.3 86.9 86.2 75.9 81.5 69.7 1935 80.0 78.8 83.7 77.9 70.9 73.5 86.4 85.3 80.5 80.6 68.3 1936 80.9 82.1 79.6 95.4 71.5 76.2 87.0 86.7 80.4 81.7 70.5 1936—March 79.6 76.5 80.1 78.9 94.9 70.8 76.2 85.3 79.3 81.4 68.3 April 79.7 76.9 80.2 78.9 94.6 70.2 76.4 85.7 78.5 81.5 68.6 May 78.6 75.2 78.0 78.8 94.0 69.8 76.0 85.8 77.7 81.5 69.2 June 79.2 78.1 79.9 78.8 93.8 69.7 76.1 86.2 85.8 78.0 81.4 69.7 July 80.5 81.3 81.4 79.5 93.4 70.5 76.2 86.9 86.7 79.4 81.2 71.0 August 81.6 83.8 83.1 79.7 93.6 70.9 76.3 87.1 86.9 79.8 81.4 71.5 September. 81.6 84.0 83.3 79.6 94.6 70.9 76.1 87.1 81.7 81.7 71.3 October.... 81.5 84.0 82.6 80.1 95.6 71.6 76.8 87.3 82.2 82.0 71.5 November. 82.4 85.1 83.9 81.0 97.0 73.5 76.8 87.7 82.5 82.3 73.4 December. 84.2 88.5 85.5 82.2 99.7 76.3 76.5 89.5 85.3 83.2 74.5 1937—January—. 85.9 91.3 87.1 83.4 101.7 77.5 76.6 90.9 91.3 87.7 86.5 76.2 February __ 86.3 91.4 87.0 84.1 102.7 77.5 76.8 91.7 93.3 87.8 87.9 77.3 March 87.8 94.1 87.5 85.5 104.2 78.3 76.2 96.0 95.9 87.5 88.4 79.5 April 88.0 92.2 85.5 86.5 106. 3 79.5 76.8 96.5 96.7 86.9 89.0 81.1 Week ending— 1937—Jan. 9—. 85.2 90.9 86.7 83.0 102.0 76.8 77.5 90.1 90.8 86.8 85.3 74.9 Jan. 16... 85.7 92.3 87.3 83.1 101.8 76.9 77.1 90.4 91.2 87.9 85.4 75.6 Jan. 23__. 85.3 90.3 86.7 83.1 102.6 76.9 76.9 90.7 91.2 88.0 85.7 75.3 Jan. 30... 85.4 91.4 86.9 83.2 102.8 76.9 77.0 90.7 91.2 87.6 85.8 75.7 Feb. 6___ 85.4 90.5 86.7 83.5 103.1 77.0 77.2 90.4 92.1 87.2 87.3 75.8 Feb. 13__ 85.6 91.6 86.6 83.6 103.3 76.9 77.6 90.5 92.2 87.0 87.4 75.9 Feb. 20._ 86.0 91.4 86.9 84.2 103.6 77.0 77.8 91.1 92.8 87.7 89.4 77.2 Feb. 27__ 86.1 91.4 86.7 84.4 103.2 76.9 77.8 92.0 93.7 87.5 89.4 77.2 Mar. 6... 86.1 91.6 86.3 84.5 103.4 76.9 77.7 92.2 94.1 87.1 89.6 77.3 Mar. 13_. 87.2 93.6 87.3 85.4 104.2 77.2 77.2 95.8 95.7 87.3 89.8 77.9 Mar. 20.. 87.6 94.4 87.9 85. 6 105.0 77.6 76.8 96.0 96.2 87.3 89.8 78.8 Mar. 27.. 87.8 94.7 87.5 85.8 105.7 78.1 76.9 96.0 96.2 87.0 90.3 79.3 Apr. 3___ 88.3 96.0 87.9 86.1 106.0 78.2 77.2 96.1 96.6 87.0 90.3 80.0 Apr. 10__ 87.9 93.5 86.1 86.3 106.8 78.6 77.1 96.3 96.8 87.0 90.3 80.1 Apr. 17__ 87.6 92.4 85.3 86.5 107.2 78.7 77.5 95.8 96.8 86.6 90.3 81.0 Apr. 24._ 87.5 92.7 85.0 86. 2 106. 7 78.6 77.6 95.1 96.6 85. 6 90.4 80.9 May I-.. 87.4 91.5 85.2 80. 3 106.8 78.6 77.9 95.1 96.6 85.2 90. 8 80.6 May 8___ 87.3 91.0 84.7 86. 3 107.7 78.3 78.2 94.8 96.8 84.4 90.8 80.4 May 15.. 86. 9 89.3 84.2 86.3 107. 6 78.2 78.2 95.0 96.9 83.9 90.8 80.4 1936 1937 1936 1937 Subgroups Subgroups Apr. Jan. Feb. Mar. Apr. Apr. Jan. Feb. Mar. Apr, FARM PRODUCTS: METALS AND METAL PRODUCTS: Grains 73.9 113.0 111.5 113.2 119.2 Agricultural implements 94.2 93.0 93.1 93.1 92.1 Livestock and poultry 88.3 91.4 89.9 93.7 93.6 Iron and steel 86.3 91.7 92.0 97.5 99.6 Other farm products 70.4 84.8 86.3 88.5 83.4 Motor vehicles 94.0 93.0 93.0 93.0 93.7 FOODS: Nonferrous metals 70.4 84.8 89.4 101.1 97.0 Dairy products 88.7 90.2 78.5 Plumbing and heating 73.8 77.1 77.4 77.6 78.7 Cereal products 84.2 88.1 89.3 90.1 89.8 BUILDING MATERIALS: Fruits and vegetables 67.8 82.4 87.8 86. 5 83.5 Brick and tile 89.0 89.7 91.0 91.8 94.9 Meats 91.0 90.6 90.3 92. 0 94.9 Cement 95.5 95.5 95.5 95.5 95.5 Other foods 72.4 82.1 78.8 78.2 77.0 Lumber 83.2 93.0 90.0 102.1 103.0 HIDES AND LEATHER PRODUCTS: Paint and paint materials 79.3 83.7 83.4 83.9 83.9 Shoes 100.3 99.7 101.4 102.3 103.8 Plumbing and heating 73.8 77.1 77.4 77.6 78.7 Hides and skins 90. 1 116.0 114.9 118. 5 121.4 Structural steel 92.0 104. 7 104.7 112. 9 114.9 Leather 84.5 94.3 95.5 97.1 100.7 Other building materials 89.1 93.9 95.0 98.9 99.9 Other leather products 95.4 101.1 101.7 101.7 102.3 CHEMICALS AND DRUGS: TEXTILE PRODUCTS: Chemicals 85.5 96.4 95.6 95.3 94.2 Clothing 80.8 83.9 84.2 84.8 Drugs and Pharmaceuticals 73.2 79.0 83.0 83.0 82.9 Cotton goods 76.2 91.9 91.3 94.0 95.1 Fertilizer materials 64.6 70.6 70.7 70.3 70.7 Knit goods 62.0 64.4 64.7 64.9 65.9 Mixed fertilizers 64.5 71.4 71.7 71.7 72.0 Silk and rayon 30.1 34.5 33.7 33.6 33.8 HOUSEFURNISIIING GOODS: Woolen and worsted goods... 82.2 91. 9 93. 1 92.6 93.5 Furnishings 85.0 89.0 91. 2 91.7 92.1 Other textile products 67.5 66.2 65.9 66.5 68.8 Furniture 78.0 84.0 84.5 85.0 85.8 FUEL AND LIGHTING MATERIALS: MISCELLANEOUS: Anthracite 80.0 81.6 81.6 77.8 72.4 Auto tires and tubes 45.0 51.8 53.1 55.0 56.4 Bituminous coal 96.8 96.8 97.4 97.5 98.6 Cattle feed 74.0 135. 4 129.4 135. 0 146.8 Coke 93.7 97.6 97.6 97.7 102.8 Paper and pulp 80.5 84.8 87.5 90.2 93. 9 Electricity 82.8 81.0 80.8 Rubber, crude 33.0 44.3 44.3 50.9 49.3 Gas 84.8 82.2 80.7 79.8 Other miscellaneous 80.6 83.1 84.2 84.8 85.3 Petroleum products 57.9 58.3 59.1 58.6 59.8 Back figures.—-For monthly and annual indexes of groups, see Annual Report for 1935 (table 80); indexes of subgroups available at Bureau of Labor Statistics. For weekly indexes covering 1935, see Annual Report for 1935 (table 81). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

612 FEDERAL RESERVE BULLETIN JUNE 1937 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS [In millions of dollars] Europe Latin Asia Total r Eur- Amer- and Africa End of month c tr o ( i 5 u e 2 s n ) - U S n ta i t t e e s d C a a d n a - c t o r o ( p i 2 u e e 6 s n 1" ) - c tr o i ( i c 1 u e a 1 s n ) - O c t i r o c a i e u e a ( s n 8 n ) - - c tr o i ( u e 5 s n ) - U K d n i o i n m t g e - d France m G a e n r- y Italy g B iu e m l- N l e a t n h d e s r- t B i o N o W a n a n l - a k tZ l & B x'i . a I u .8 u 1934—December. 21,051 8, 238 134 11,010 601 805 263 1,584 5,445 32 518 590 573 624 4 1935—December 21, 583 10,125 189 9,517 645 816 291 1,648 4,395 33 270 611 438 454 8 1936—January... 21,572 10,182 186 9,441 646 817 300 1,652 4,324 31 244 600 455 454 11 February.. 21, 623 10,167 186 9,487 648 825 310 1,653 4,362 29 228 593 463 472 10 March 21,657 10,184 184 9,493 642 830 323 1,653 4,348 29 216 586 486 493 8 April 21,412 10, 225 187 9. 254 642 836 268 1,670 4,106 28 212 581 483 495 8 May 21,306 10, 402 188 8,966 641 841 268 1,701 3,781 28 211 610 465 485 11 June __ __ 21,343 10, 608 187 8,806 634 840 268 1,782 3,580 29 210 638 404 460 12 July 21 682 10, 648 187 9,099 635 845 269 1,977 3,643 29 209 633 437 471 10 August 21,809 10,716 189 9,145 642 849 269 2,017 3,614 28 209 632 457 489 12 September 21,719 10,845 191 8, 919 638 857 269 2,049 3,322 25 208 631 456 508 12 October ... P21, 778 11,045 186 P8, 774 658 847 269 2,049 3,194 26 208 621 388 583 13 November. P21, 980 11,184 188 P8, 829 656 852 270 2,049 3,194 27 208 630 388 624 13 December _P22, 602 11,258 188 P9,307 708 858 P283 2,584 2,995 27 208 632 490 655 11 1937—January... P22, 632 11,358 190 P% 225 P697 P865 P297 2,584 2,846 27 208 625 558 657 13 February.. P22, 743 11,436 . 191 P9, 268 P6fi8 P870 P310 2,584 2,846 27 208 626 598 657 12 March P22, 959 11,574 194 P9, 295 P723 P857 P317 2, 584 2,846 27 208 619 626 657 15 April 11,799 199 P9,301 2,584 2; 846 28 208 607 670 635 11 Europe—Continued End of month Austria g B a u ri l a - C v z s a e l k o c - h ia o- m D a e r n k - Greece H ga u r n y - N w o a r y - Poland Po g r a t l u- Ru n m ia a- Spain S d w en e- Y sl u av g i o a - 6 c t o o ri u t e h n s e - r 1934—December. 45 . 19 112 60 40 23 61 96 68 104 740 159 53 60 1935—December. 46 19 112 54 34 23 84 84 6b xO9 735 185 43 63 1936—January. _. 46 19 112 54 34 23 84 84 68 109 735 194 44 63 February.. 46 19 112 54 33 23 84 85 68 110 735 200 44 65 March 46 19 113 54 32 23 84 81 68 110 726 206 44 67 April 46 19 113 54 32 23 84 72 68 111 726 209 45 67 May 46 20 113 54 35 23 84 71 68 111 718 220 45 68 June 46 20 113 54 33 23 89 70 68 112 718 231 46 70 July 46 20 113 54 31 23 89 69 68 112 718 231 46 71 August ... 46 20 109 54 28 23 91 70 68 112 718 232 46 73 September. 46 20 108 54 27 23 98 71 68 113 718 238 46 78 October ... 46 20 91 54 26 23 98 71 68 113 718 239 47 P79 November. 46 20 91 54 26 25 98 72 68 113 718 239 48 P79 December . 46 20 91 54 26 25 98 75 68 114 718 240 48 P82 1937—January... 46 21 91 54 26 25 98 75 68 114 718 240 49 P82 February. . 46 21 91 53 27 25 98 76 68 115 718 241 49 P82 March 46 21 91 53 27 25 98 77 P68 115 718 241 49 P82 April 46 21 91 53 P27 25 98 78 PG8 718 241 50 P82 Latin America Asia andOceania Africa End of month g t A i e n r n a - - Chile l C o b m i o a - - M ic e o x- Peru g U u r a u y - c o t o r th i u 5 e e n s r - I B n i r s d h i i t a - China Japan Java N l Z a e e n a w d - T k u ey r- c o t o r th i 2 u e e n s r - Egypt A So fr u ic th a c o t o r th i 3 u e e n s r - 1934—December. 403 29 19 23 19 82 26 275 7 394 77 25 22 6 55 184 24 1935—December. 444 29 16 2 28 20 74 36 275 10 425 04 23 24 0 55 212 24 1936—January... 444 29 17 26 20 74 36 275 11 428 54 23 24 3 55 221 24 February.. 444 29 18 26 20 74 37 275 15 431 54 23 24 3 55 231 24 March 438 29 18 26 20 74 38 275 15 433 58 23 24 3 55 244 24 April. 438 29 17 26 20 74 38 275 15 435 61 23 24 3 55 189 24 May 438 29 16 26 19 74 39 275 17 439 61 23 24 3 55 189 24 June . 435 29 16 '26 19 68 40 275 13 442 60 23 24 3 55 189 24 July 436 29 17 26 20 68 40 275 13 447 60 23 24 3 55 189 25 August 441 29 17 26 20 68 41 275 15 450 59 23 24 3 55 189 25 September 437 29 17 26 20 68 42 275 19 453 60 23 24 3 55 189 25 October ... 455 29 17 26 20 68 42 275 6 456 60 23 24 3 55 189 25 November 452 29 18 26 20 68 43 275 7 459 60 23 24 3 55 191 25 December. 501 29 19 26 20 69 44 275 8 463 60 23 26 4 55 203 P25 1937—January... 487 29 20 26 20 69 P45 275 9 466 60 23 28 P4 55 217 P?5 February.. 489 P29 22 26 P20 66 P45 275 10 469 60 23 29 Pi 55 230 P25 March 519 P29 18 26 ?20 P45 275 P10 456 60 23 29 55 237 P25 P Preliminary. r Revised. Decline in reported gold holdings of Bank of Italy during 1936 has been distributed monthly on basis of gold imports from Italy reported by other countries. Figures for February and March 1937 are for 20th of month; other figures for 1937 carried forward from last previous report date. 1 No statements have been received for Bank of Spain since Aug. 1,1936. Figure as of that date is given for August 1936 and carried forward for subsequent months. 2 Figure for March 1935 carried forward for subsequent months. 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, El Salvador, and Guatemala; in Asia and Oceania: Australia, and Siam; and in Africa: Algeria, Belgian Congo, and Morocco. For back figures and for full description of this table, see BULLETIN for May 1932, pp. 311-318; June 1933, pp. 368-372; July 1936, pp. 544-547; and August 1936, p. 667. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

613 JUNE 1937 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 i t c h a R de h s o i - a A W fr e i s c t a B C e o lg n i g a o n Canada U S n ta it t e e d s Mexico Co b l ia om- Chile Au li s a tra- Japan B I r n i d ti i s a h $1=25-8/ 0 grainsof gold 9/'10 fine; i.e., an ounee of fine gold=$W.67 1929 397,153 359, 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 - - 432, ] 19 373,154 221, 526 11,476 4, 995 2, 699 43, 454 47,123 13, 813 3, 281 428 9, 553 8,021 6, 785 1931 460, 651 394, 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 4L'8, 164 421,656 238,931 12, 000 5, 992 3, 642 62, 933 £0, 626 12,070 5,132 788 14, 563 8,198 6,782 1933 525,071 420, 093 227, 673 13, 335 6,623 3,631 60, S68 52, 842 13,169 6,165 3, 009 16, 790 8,968 6,919 $1—15-6/81 grains of gold 9/10 fine; i. e.t an ounce of fine gold=$S5 1933 888,QQ7 711, 260 385, 474 22, 578 11.214 fi.148 103 ??A 89, 467 22, 297 10,438 5,094 28, 428 15,183 11, 1934 958,033 '723,530 366, 795 24, 264 12.153 6,549 104,023 '108,191 23,135 12,045 8,350 30,447 16,354 11,?n 1935 1,040,?17 771,827 377,090 25, 477 1?,625 7,159 114,971 126,325 23,858 517 9,251 31,117 20,043 11,394 1936 P1,164,908 P854, 132 396,768 28,053 ie,295 7,386 130, 550 150,959P26, 394 13,633 9,018 39,793 23, 684 11.599 1936—March 86,387 68,156 32,709 2,359 1,326 544 10, 469 11,020 1,627 1040 1,147 2,882 2,065 Q6S April 86, 327 67, 896 31,991 2,410 1,258 543 10, 474 11,113 2,607 1 122 499 3,127 1,808 944 May 91, 870 69,439 32, 826 2,413 1L, 289 547 10, 797 11,945 2,075 1086 552 3,045 1,885 970 June . .. 97,877 71,046 33, 086 2,384 1285 585 11083 11,948 2,570 1,065 611 3,476 1,994 9^8 July 107 686 75,655 33, 846 2,354 L, 352 676 11 183 15,042 2,632 i;?35 776 3,602 1,977 Q81 August . . P106969 P73, 738 33, 830 2, 425 ,412 675 11 504 13, 627 P!,820 i,098 1,029 3,422 1,916 981 September. _ 1-108 184 P74, 952 33,816 2,363 1,444 696 11 579 14, 280 P2, 345 l,236 467 3,515 2, 246 966 October P113 125 P76, 693 34, 199 2,292 1,493 691 11693 15, 821 Pi, 960 l,109 784 3,596 2,075 982 November _ PIOO 291 P72, 460 33, 042 2,270 ,506 634 11 174 13,240 P2, 205 l.035 758 3,467 2,162 96fi December... P96 395 P73, 564 33, 858 2,262 ,544 631 11 555 12,977 PI,645 l,113 708 4,170 2,118 983 1937—January P91 847 P73,256 34, 352 2,315 ,671 586 11499 11,483 P2, 870 l,332 940 3,158 2, 065 984 February _._ P87 253 pf)8, 422 32, 330 2,109 ,563 579 10853 10,171 P2, 240 l,117 P770 3,714 2. 077 899 March *>93981 *>73, 950 34, 381 P2,415 1,605 3'579 11 420 12, 531 P2, 24C l,285 P805 P3, 714 P2, 077 c Corrected. p Preliminary. NOTE.—For monthly figures back to January 1929 and for explanation of tables see BULLETIN for April 1933, pp. 233-35, February 1931, p. 108, November 1934, p. 737, July 1936, p. 600, March 1937, p. 267, April 1937, p. 363 and May 1937, p. 487. For annual figures of world production back to 1873 see Annual Report of Director of the Mint for 1936, pp. 108-109. Figures for Canada beginning January 1935 are subject to official revision. Estimated production of the U.S.S.R. for March 1937, in thousands of dollars: $10,800. GOLD MOVEMENTS [In thousands of dollars at approximately $35 a fine ounce] United States Net imports from or net exports (—) to: Total Year or month net i e m o x r p p n o o e r r t t t s s U K d n i o i n m t g ed - France Bel- N la e e n r t d - h . s - S l w a e n r i - t d z- C a a d n a - M ic e o x- Co b l i o a m- P Is p h l i i a n l n i e p d - s t A ra u l s i - a C H K a h o o n i n n d n g g a B I r n i d ti i s a h c o t o A r th i u e l e n l s r - 1934 i 1,131,994 499,870 260, 223 8,902 94, 348 12,402 86,829 30, 270 16,944 12,038 1,029 16, 452 76, 820 15, 868 1935. 1, 739,019 315, 727 934, 243 3 227,185 968 95,171 13, 667 10, 899 15, 335 3,498 9,431 75, 268 37, 620 1936. 1,116, 584 174,093 573, 671 3,351 71,006 7,511 72, 648 39,966 11,911 21, 513 23, 280 7,917 77,892 31, 828 1936—January 45, 643 5,786 3,514 10, 745 764 1, 743 1, 236 5,196 1,176 11, 744 3,738 February -16,635 -2, 890 -17,180 -3, 421 273 659 1,520 1,499 740 2, 166 March 5,480 -1,792 13 -343 1,677 772 1,578 373 3,203 April 28,055 1,493 1,564 11,232 713 1,742 1,716 651 385 5,106 3,452 May 169,952 4,003 133,157 8,751 1, 4,322 2,100 1,735 1,029 84 9, 720 2, 593 June 277, 775 3,644 202, 983 38, 811 551 14, 584 2,104 2,124 2,511 603 5,947 3,911 July 15, 379 -9 27 882 869 2,106 2,425 856 5, 654 2, 566 August 67, 493 5,83; 17, 880 11, 664 15, 11 716 1,747 10, 688 1,771 September 171,824 8,204 136, 671 1,463 524 6,338 634 2,101 2,405 2, 831 442 6, 961 3,251 October 2.18, 812 72,154 95,013 799 25, 745 8 12, 222 530 4 2,157 1,869 451 5, 782 2,079 November 75, 836 44, 665 20 2,545 3,698 10, 660 368 1,628 3,781 432 6,182 1,857 December 56, 970 32, 998 9 2 3,281 4, 709 2,273 936 951 10,108 1,242 1937—January 121, 325 73, 950 10, 864 10, 691 271 6,506 5, 865 1,945 2,123 1,617 158 6,028 1,305 February 120, 32(3 75, 238 1,138 14 8,155 10, 661 9,153 2,109 2, 910 287 7, 077 3, 583 March 154, 332 121, 451 76 1,131 1,086 4,925 3,242 3 1,944 3.46' 265 4,017 12, 727 April 215,81 175, 105 596 5,399 7, 225 1,973 4,261 2,231 2,388 4, 857 11. 640 1 Differs from official customhouse figures in which imports and exports for January 1934 are valued at approximately $20.67 a fine ounce. NOTE.— For gross import and export figures and for additional countries see table on page 586. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

614 FEDERAL RESERVE BULLETIN JUNE 1937 GOLD MOVEMENTS—Continued [In thousands of dollars at approximately $35 a fine ounce] United Kingdom British India Net imports from or net exports (—) to: Change in: Year or Total Total Gold month net im- South net proports Africa, All imports duc- Re- Private e o x r p n o e rt t s U S n ta i t t e e s d France m G a e n r- y g B i e u l m - N l e a t n h d e s r- Canada Aus li t a ra- d R e h s o ia - , B I r n i d ti i s a h c o o th u e n r - e o x r p n or e t t s ti i o n n ser in ves in h g o s l d- in () West tries () India India* Indian Africa 1934.. _. 716, 269 -497,166 348,190 121,017 -13,585 32, 575 26, 316 41,790 335, 253 206,711 115,168 -230, 720 11, 222 -219,671 1935 369, 747 -435, 502 142,137 -4, 726 -17, 476 10, 796 16, 565 37, 981 404, 295 181,627 34,050 -161,872 11,393 -150,472 1936.. _. 1,170,023 -276,813 756, 204 23, 295 -15,133 -21,130 12, 928 26, 723 488, 814 128, 420 46, 715 -121,102 11, 599 -109,503 •'• 1935— Oct.... -36,158 -87,929 -2, 739 68 217 -1,136 3,414 44, 995 11,900 -4, 975 -11,160 974 -10,186 Nov... 18, 286 -33, 744 25,198 50 -20, 204 1,798 2,842 33, 325 12,857 -3, 836 -14, 540 953 -13, 587 Dec... 40, 811 -22, 075 910 114 -27 -6, 982 1,798 1,995 42, 442 14,838 7,799 -10, 303 -9, 337 1936—Jan.... 41, 974 -12,059 3,202 78 94 -591 1, i 39, 852 11, 035 -1,526 -13,809 971 Feb... 1,136 -3, 253 173 33 -7, 569 5,958 2,037 26, 454 11,686 1,993 -9, 846 920 -8, 926 Mar... 47, 666 3,440 6,738 92 99 -13,354 4,090 2,574 31, 033 10,896 2,057 -7, 667 -6,699 Apr... 77,137 -9, 465 12, 710 4,295 -1,383 -1, 409 899 3,329 55,108 9,413 3,641 -10,351 944 -9, 407 May.. 74, 590 -12,611 26,936 1,875-17,602 1,761 1,708 2,167 53,802 13, 289 3,264 -11,357 979 -10,378 June.. 69, 447 -26, 802 27,060 3,903 -536 606 1,610 45,147 10,860 7,599 -10,355 -9, 397 July.. 195, 066 -4, 384 142, 535 1,913 -747 -2, 421 270 2,531 43,122 9,657 2,591 -15,032 981 -14,051 Aug._ 281, 401 -16,120 240, 868 1,789 -804 -2, 907 ____ 34, 552 15,011 6,922 -7,! 981 -7,002 Sept... 151,814 -14,096 108, 666 6,369 -1,029 2, 084 36, 517 6,581 633 -8, 273 -7, 307 Oct... 7,615 -72,441 -383 3,964 -1,039 2,458 45, 323 7,853 19, 895 -11, 576 982 -10, 594 Nov.., 83,168 -49, 224 72,506 — 163 377 1,486 % 304 36, 230 14,896 4,756 -9, 347 -8, 381 Dec. 100, 505 -63,914 118, 655 -624 -1,130 1,836 2,126 41, 683 7,243 -5, 368 -5, 506 -4, 523 1937—Jan. __ -25, 523 -73, 568 22,453 -220 414 1,021 -3 2,504 16,903 3,953 1,019 -8,447 -7,463 Feb.. 122, 296 —75, 615 163, 919 153 452 1,756 1,968 24,113 8,705 -3,156 -3,161 -2, 262 Mar.. 78, 484 -104,399 124,121 507 1,587 965 2,727 26, 593 5, 7603 20, 624 P-4,080 p-3,181 Apr .. 12,063 -149,444 11,281 -1,055 104 927 2,122 44,198 2,8483 101, 055 Germany Switzerland Total Net imports from or net exports (—) to: Total Net imports from or net exports (—) to: Year or month net net i e m o x r p p n o o e r r t t t s s U K d n i o i n t m g e - d France N l e a t n h d e s r- e S r w la it n z d - c o t o A r th i u e l e n l s r - i e m o x r ( p p - o n o ) r e r t t t s s U S n ta i t t e e s d U K d n o in i m t g e - d France g B iu el m - 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 - 1934... -90, 920 -42,907 -28,114 1634 89, 324 -46,065 -12, 784 -45, 955 -29, 235 18,397 19,431 2,580 1,500 1935... 42,969 13, 225 7,394 9,888 4 7, 281-230, 788 647 -54, 858 -181,725 -13,940 25,542 342 -6, 795 1936 .. -2,121 20,188 3,239 -390 121, 788 -9,127 -2, 205 39, 305 14, 531 51, 299 4,600 23, 378 1935—Oct 10, 566 7,058 2,532 1,116 1,367 163 1,085 881 1,343 241 -2, 344 Nov. 780 5 680 67 -934 -332 -3, 227 1,849 -49 825 Dec. 2,004 591 810 671 -2,330 -2,088 -4,166 21 4,724 -139 1936—Jan.... -2, 584 -2,441 -35 61 2,462 -195 -6, 783 47 9,496 -137 34 Feb —1,307 -2,029 801 27 -140 6,571 -518 -5, 705 1,821 9,612 1,377 -16 Mar -258 -19 -142 20 -59 21, 413 -841 -3, 492 1,724 21, 537 567 1,917 April -1,201 13 3,077 23 -37 22, 570 -131 7,292 -3 6,970 29 5 8,413 May _ -630 3,256 76 -28 13,386 32 -4,298 284 -8 1,449 132 615, 794 June 1,130 2 2,821 23 4 5,188 -4 -1,704 2,057 -235 2,952 2,113 9 July 3,248 2 3,121 2,061 -38 -321 -7 820 -249 1,166 -20 -121 -1,911 Aug 1,580 2 3,265 30 -55 2,829 -113 3,176 -254 -20 -21 59 Sept. -3, 514 4 2,496 26 37 33, 506 -575 -6, 396 40,875 -286 -641 487 42 Oct -3, 521 -2 448 7 -20 14,848 19 656 8,177 62 57 -112 Nov 426 73 65 30 2,210 -3,676 2,892 1,241 1,723 -65 97 -3 Dec 4,763 2,346 1,006 822 15 -2, 874 -4,916 2,291 -47 -33 20 -848 1937—Jan... 17, 426 15, 352 -95 52 1,897 -135 -6, 675 5,227 -612 732 -100 -575 1,866 Feb... 27,024 11,432 -77 14, 231 1,558 -17,034 -6, 247 2,436 -1 852 -566 '-13,507 Mar__ 588 1 23 1,157 57, -463 -490 653 55 819 Apr?.. -1,372 -2,516 -228 1,372 p Preliminary. c Corrected. 1 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 reserves in India. 3 $22,520,000 imported by United Kingdom from U. S. S. R. in March and $98,510,000 in April 1937. 4 $85,390,000 imported by Germany from U. S. S. R. in 1934, and $6,376,000 in 1935. 8 $8,444,000 imported by Switzerland from Czechoslovakia in April and $15,433,000 in May 1936. s $15,322,000 exported by Switzerland to Germany in February 1937. NOTE.—Germany, Switzerland, and United Kingdom.—In some cases the annual aggregates of the official monthly figures differ somewhat from the revised official totals published for the year as a whole. German gold movements by individual countries, beginning with January 1937, are subject to official revision. France and Netherlands.—No figures reported by France since September and by Netherlands since October 1936. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1937 FEDERAL RESERVE BULLETIN 615 CENTRAL BANKS Assets of banking department Liabilities of banking department Bank of England (Fi p g o u u re n s d i s n s m ter il l l i i n o g n ) s of G d m o i e s e l p s d n u a t r e ( ) t i ! - n Cash reserves a c n o D d u i s n a - t d s - Se ti c e u s ri- ci N t r i c o o u t n l e a- Deposits l O ia t b h i e li r - Coin Notes vances Bankers' Public Other ties 1929—Dec. 25 145.8 .2 26.3 22.3 84.9 379.6 71.0 8.8 35.8 17.9 1930—Dec. 31 147.6 .6 38.8 49.0 104.7 368. 8 132.4 6.6 36.2 18.0 1931—Dec. 30 _ _ 120.7 .6 31.6 27.3 133.0 364.2 126.4 7.7 40.3 18.0 1932—Dec. 28 119.8 .8 23.6 18.5 120.1 371.2 102.4 8.9 33.8 18.0 1933—Dec. 27 190.7 1.0 58.7 16.8 101.4 392.0 101.2 22.2 36.5 18.0 1934—Dec. 26 192.3 .5 47.1 7.6 98.2 405.2 89.1 9.9 36.4 18.0 1935—Dec. 25 200.1 .6 35.5 8.5 94.7 424.5 72.1 12.1 37.1 18.0 1936—Feb. 26 __ 200.6 .7 60.7 11.0 96.2 399.9 106.2 8.8 35.5 18.2 Mar. 25 200.6 .8 54.1 5.0 97.0 406.5 83.6 18.0 37.0 18 3 Apr 29 202.7 .8 45.9 8.3 114.0 416.9 104.7 7.5 39 0 17 7 May 27 206.4 .9 40.3 6.7 104.7 426.1 78.3 19.8 36 7 17 8 June 24 _ 216.3 1.0 41.5 7.6 116.1 434.8 90.8 20.0 37.4 17.9 July 29 239.9 1.0 51.4 7.1 115.5 448.6 75.2 42.3 39 4 18 1 Aug. 26 244.8 1.1 61.3 9.2 102.6 443.4 100.9 17.2 37.8 18.2 Sept 30 248.7 1.1 59.3 8.6 100.7 449.4 60.7 49.7 40 9 18 3 Oct. 28 248.7 1.0 65.9 6.6 99.7 442.7 86.5 27.6 41.4 17.7 Nov 25 248.7 .7 63.1 6.8 98.6 445.6 97.6 12.1 41 7 17 8 Dec. 30 313.7 .6 46.3 17.5 155.6 467.4 150.6 12.1 39.2 18.0 1937—Jan. 27 313.7 .4 61.4 8.0 97.4 452.3 98.4 12.1 38.4 18.1 Feb. 24 313.7 .7 58.6 4.9 105.3 455.1 100.4 13.0 37.9 18.2 Mar 31 313.7 1.0 39.8 7.1 123.4 473.8 62.3 52.2 38.5 18 3 Apr. 28 313.7 1.0 44.8 5.5 119.7 468.8 87.6 26.2 39.6 17.7 Assets Liabilities Domestic bills Loans on- Deposits Bank of France Ad- (Figures in millions of francs) Gold* ch F e e a i o x g n r - n g - e S c p ia e l - Other v m G a e n t r e o o n c n v e - t - s m G S t e o e h n v r o t e m r r s t n e - - - s O e ti c t e h u s 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 c N i t r i c o o u t n e la- G m ov e e n r t n- Other l O ia t t i b h e i s e li r curities 1929—Dec 27 41,668 25,942 8,624 2,521 5,612 5,603 68,571 11,737 7,850 1,812 193O—rw 26 53, 578 26,179 8,429 2,901 5,304 6,609 76,436 12,624 11,698 2,241 1931—Dec 30 68,863 21,111 7,389 2,730 7,157 8,545 85,725 5,898 22,183 1 989 1932—Dec. 30 83, 017 4,484 3,438 2,515 6,802 9,196 85,028 2,311 20,072 2,041 1933—Dec 29 77,098 1,158 4, 739 2,921 6,122 8,251 82, 613 2,322 13,414 1 940 1934—Dec 28 82,124 963 3,971 3.211 5,837 8,288 83, 412 3,718 15, 359 1,907 1935—j)ec 27 66,296 1,328 9,712 573 3^ 253 5,800 7,879 81,150 2,862 8,716 2 113 1936—Yeb 28 65, 789 1,309 9,758 932 3,250 5,708 8,186 81,239 2,854 8,706 2,134 Mar 27 65, 587 1,297 12,053 671 3,325 5,708 8,028 83,197 2,889 8,434 2,148 Apr. 24_ 61, 937 1,305 14,392 623 3,349 5,708 8,193 82, 557 2,722 7,895 2,334 May 29 57,022 1,426 19,381 796 3,381 5,708 8,134 84,705 1,850 6,909 2,383 June 26 53, 999 1,297 7,750 14,333 1,048 3,441 5,708 8,015 85,106 1,305 6,528 2,652 July 31 54,942 1,270 6,041 14,333 1,461 3,555 5,708 8,699 85,892 1,594 6,254 2,267 Aug 28 54,511 1,250 7,063 14, 333 809 3,454 5,640 8,125 84, 324 1,523 7,037 2,301 Sept. 25 50, 111 1,245 27 7,484 15,903 838 3,553 6,640 9,643 83, 750 1,679 6,660 2,356 Oct. 30 64, 359 1,471 547 7,332 12,303 668 3,447 5,640 8,204 87,198 3,973 9,247 3,553 Nov. 27 64,359 1,466 925 8,056 12, 298 702 3,464 5,640 8,029 86,651 2,069 13,058 3,160 Dec 30 60, 359 1,460 1,379 8,465 17, 698 715 3,583 5,640 8,344 89, 342 2,089 13, 655 2,557 1937 Jan 29 57, 359 1,435 1,620 8,553 19,772 1,168 3,701 5,640 8,209 87, 688 1,955 15,280 2,534 Feb. 26 57,359 1,323 1,524 8,990 19, 772 873 3,594 5,640 8,235 87, 062 2,315 15, 386 2,547 Mar. 26 57, 359 1,194 1,514 8,440 20,066 225 3 698 5,640 8,543 85, 746 1,977 16,404 2,552 Apr. 30 57, 359 4,112 1,470 7,639 19, 991 965 3,918 5,642 9,256 87,063 4,361 13,408 2,518 1 Issue department also holds securities and silver coin as cover for fiduciary issue, which is fixed by law at £260,000,000. However, by direction of the British Treasury under Section 2, paragraph (2), of the Currency and Bank Notes Act, 1928 (see BULLETIN for August 1928, pp. 567-569), a reduction of £fO,00(),000 in the amount of the fiduciary issue (and the securities held as cover) has been in effect since December 16, 1936. From August 1, 1931 to March 31, 1933. an increase of £15,000,000 in the fiduciary issue (and securities held as cover) was authorized by the British Treasury under Section 8 of the Currency and Bank Notes Act. 2 By law of October 1, 1936, gold provisionally revalued at rate of 49 milligrams gold 0.900 fine per franc (see BULLETIN for November 1936, 8ip!. 878-880). Of the total gold increment of about 17,000,000,000 francs, 10,000,000,000 francs was initially turned over to Stabilization Fund estab- ;shed by the law of October 1. 3 Bills and warrants endorsed by the National Wheat Board (law of Aug. 15,1936—see BULLETIN for October 1936, pp. 785-786), and bills rediscounted for account of the Banques Populates (law of Aug. 19, 1936—see BULLETIN for October 1936, p. 788). NOTE.—For explanation of table see BULLETIN for February 1931, pp. 81-83, July 1935, p. 463 and July 1936, p. 603. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

616 FEDERAL RESERVE BULLETIN JUNE 1937 CENTRAL BANKS—Continued Assets Liabilities Reichsbank Reserves Securities (Figu r r e e ic s h i s n m m ar il k li s o ) ns of Gold e F x o ch re a i n g g n e Tr b e i a ll s s ury b c i O h ll e s t c h ( k e a s r n ) d Se lo cu an ri s ty E a c l s i o g n v i o e b r t l e e Other Other 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 - 1929—Dec. 31 2,283 404 241 2,608 251 92 656 5,044 755 736 1930—Dec. 31 2,216 469 206 2,366 256 102 638 4,778 652 822 1931—Dec. 31 984 172 98 4,144 245 161 1, 065 4,770 755 1,338 1932—Dec. 31 806 114 16 2, 806 176 398 1,114 3,560 540 1,313 1933—Dec. 30 386 9 49 3,177 183 259 322 735 3,645 640 836 1934—Dec. 31 79 5 45 4,021 146 445 319 827 3,901 984 1,001 1935—Dec. 31. 82 5 53 4,498 84 349 315 853 4,285 1,032 923 iV«6—Feb. 29 72 5 43 4,026 72 348 315 861 4,177 652 914 Mar. 31_ 72 5 54 4,201 56 336 321 771 4,267 768 782 Apr. 30 70 5 71 4,353 73 240 319 702 4,348 688 798 May 30 70 5 37 4,606 60 219 319 648 4,430 729 807 June 30 72 5 98 4,699 66 220 311 704 4,389 960 815 July 31 72 5 90 4,623 67 220 310 711 4,471 787 840 Aug. 31 69 6 74 4,693 65 220 309 686 4,540 729 853 Sept. 30 63 6 51 4,875 59 219 308 695 4,657 744 875 Oct. 31 65 5 55 4,888 79 219 305 685 4,713 689 897 Nov. 30 66 5 57 4,852 67 219 303 770 4,674 753 911 Dec. 31 66 62 5,448 74 221 765 4,980 1,012 953 1937—Jan. 30 67 4,835 65 223 302 959 4,799 707 973 Feb. 27 67 4,777 102 222 302 1,059 4,816 785 Mar. 31 68 5,101 51 167 312 1,021 4,938 970 Apr. 30 68 5,124 52 106 310 896 4,979 794 816 NOTE—For explanation of above table see BULLETIN for February 1931, pp. 81-83, and July 1935, p. 463. Central bank 1937 1936 Central bank 1937 1936 [Figures as of last report [Figures as of last report date of month] date of month] Apr. Mar. Feb. Apr. Apr. Mar. Feb. Apr. National Bank of Albania (thou- National Bank of Belgium—Cont. sands of francs): Note circulation 4,421 4,404 4,477 4,255 Gold 7, 555 7, 555 7, 556 Demand deposits—Treasury 143 166 25 31 Foreign assets 24, 522 24, 234 18, 209 Other 622 734 828 719 Loans and discounts 3,668 3, 819 3,111 Other liabilities 72 72 72 72 Other assets 3,951 3, 755 5,029 Central Bank of Bolivia(t housands Note circulation 11,539 11.469 11,545 of bolivianos): Other sight liabilities 16. 382 16, 237 10.710 Gold at home and abroad1 50,421 67,400 22, 243 Other liabilities 11,775 11,657 11,650 Foreign exchange 111,320 71, 773 8.640 Central Bank of the Argentine Loans and discounts 11,642 11,068 7,230 Republic (millions of pesos): Securities—Government 414, 560 413, 360 388,202 Gold at home 1,224 1,224 1,224 Other 4,735 4,795 2,921 Gold abroad and foreign ex- Other assets 13,968 12, 524 16,976 change 286 307 111 Note circulation __ 231, 293 220, 568 56, 534 Negotiable Government bonds._. 212 Deposits 271,155 256,097 225.162 Other assets 165 154 153 Other liabilities 104,199 104, 255 64,515 Note circulation 1,140 1,134 1,021 Bank of Brazil (millions of milreis) : Deposits—Member bank 383 391 451 Cash 239 268 211 Government 117 124 190 Correspondents abroad 413 503 379 Other 5 6 9 Loans and discounts 2,441 2,439 2,921 Other liabilities 31 30 29 Note circulation 10 Commonwealth Bank of Aus- Deposits 2, 949 2,952 3,146 tralia (thousands of pounds): National Bank of Bulgaria (mil- Issue department: lions of leva): Gold, and English sterling 16,012 16,012 16,003 Gold 1,755 1,755 1,755 1,591 Securities 38, 560 38, 561 40,341 Foreign exchange reserve (net)... -128 Banking department: Other foreign exchange 546 554 622 374 Coin, bullion, and cash 1,093 1,297 1,225 Loans and discounts 979 921 765 1,372 London balances 28, 829 22. 680 19,314 Government debt 3,551 3,551 3,551 2,671 Loans and discounts 15.328 17, 594 10, 642 Other assets 995 1,053 970 1,099 Securities 38, 251 38, 251 35, 657 Note circulation. 2,636 2,440 2,317 2,252 Deposits 79,940 76. 509 63, 9Q2 Deposits 2,899 3,109 3,111 2,219 Note circulation 47,039 47', 039 48,045 Other liabilities 2,291 2,287 2,235 2,508 Austrian National Bank (millions Bank of Canada (thousands of Caof schillings): nadian dollars): Gold 243 243 243 243 Gold _ _ 191,192 87, 947 179, 423 .79, 951 Foreign exchange (non-reserve) _. 97 96 96 82 Silver bullion 2,388 2,358 2,281 1,636 Loans and discounts 195 197 202 219 Sterling, United States and other Government debts 620 620 620 624 exchange 11,215 19, 706 14, 575 9,384 Other assets 139 125 130 168 Advances to Provincial Gov'ts... 2,000 Note circulation S05 891 893 952 Government securities: Deposits 228 243 241 210 2 years or less 50, 252 50, 975 55,196 28, 602 Other liabilities 161. 148 156 174 Over 2 years 101,687 101, 797 101,661 82,323 National Bank of Belgium (mil- Other assets 6,537 7,826 4,709 5,154 lions of belgas): Note circulation 129,063 125, 970 119,218 90, 309 Gold 3. 579 3, 651 3, 690 3,429 Deposits—Chartered banks 199, 472 194, 275 195,045 L87,447 Discounts, domestic and foreign.. 1,331 1,373 1, 363 1,247 Dominion Government 21, 222 36, 751 30,038 23,915 Loans _.. 38 38 34 75 Other 796 1,452 1,315 327 Other assets 310 314 316 325 Other liabilities 12, 718 12,160 12, 230 7,054 1 Gold abroad revalued in December 1936. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1937 FEDERAL RESERVE BULLETIN 617 CENTRAL BANKS—Continued [Figures as of last report date of month] 1937 1936 1937 1936 Central bank Central bank Apr. Mar. Feb. Apr. Apr. Mar. Feb. Apr. Central Bank of Chile (millions of Central Reserve Bank of El Salvapesos) : dor (thousands of colones): Gold and foreign*exchange in re- Gold 13,142 13,138 12,917 serve 143 142 Foreign exchange 6,986 5, 720 4 345 Loans and discounts 225 102 Loans and discounts 597 1 279 484 Government debt 699 706 Government debt and securities. 6, 364 6,546 6 842 Note circulation 680 598 Other assets 2,510 2 464 1 882 Cen D tr e a p l o B si a ts nk of China1 (millions of 302 275 N De o p te o s c i i t r s c ulation _ 1 7 8 , , 1 1 7 8 6 2 1 6 8 , ,5 5 8 7 4 8 1 7 4 ,5 8 6 0 9 0 yuan): Other liabilities 4,240 3,984 4,102 Gold 34 51 Bank of Estonia (thousands of Silver 236 230 krooni): Foreign exchange 168 86 Gold 34,184 34,180 34,176 34,125 Due from domestic banks 144 124 Foreign exchange (net). 15,389 17,164 12,390 2, 463 Loans and discounts 474 210 Loans and discounts 26,577 26,121 25 871 21 453 Securities 162 311 Other assets 22,114 21, 285 21,228 23 433 Other assets 85 48 Note circulation __ _ 46,471 47,184 46 005 41 887 Note circulation 358 269 Demand deposits 36, 089 36, 206 33, 703 27, 251 795 667 Other liabilities 15 703 15 360 13 957 12 335 Other liabilities 149 125 Bank of Finland (millions of mark- Bank of the Republic of Colombia kaa): (thousands of pesos): Gold 816 816 815 501 Gold 32, 504 40,212 37, 779 29, 789 Foreign assets __ 2,017 1,960 1 939 1 559 Foreign exchange 11,490 9, 690 12,725 5, 738 Loans and discounts 1,130 1,085 1, 051 1,021 Loans and discounts 11,294 7, 024 7, 705 4, 323 Domestic securities.. __ _ _ 316 308 295 262 Government loans and securities. 45,912 45, 752 45, 585 45, 341 Other assets 323 320 301 293 Other assets 26, 638 27,015 26,871 25, 721 Note circulation 2, 008 1,913 ' 1 757 1 546 Note circulation 51,544 51. 478 52, 730 42, 824 Deposits—Treasury 415 467 531 35 38 573 41 158 41 413 30 633 Other 495 483 513 600 Other liabilities 37, 720 37, 058 36, 521 37, 454 Other liabilities _ 1, 684 1,627 1,601 1,454 National Bank of Czechoslovakia Bank of Greece (millions of drach- (millions of koruny): mas): Golds . -. . 2, 581 2, 583 2, 587 2, 694 Gold and foreign exchange (net). 3,304 3,272 3, 229 3,078 Foreign exchange 127 146 277 44 Leans and discounts 3, 385 3, 066 2, 957 5,140 Discounts 1, 239 1,180 1,094 837 Government obligations _. 4, 104 4,154 4,157 4.172 Loans 1,005 1,069 791 599 Other assets.. __ _ 2, 258 2,156 1, 940 1, 249 Government debt. 2,018 2,018 2,019 2, 038 Note circulation 6,680 6, 368 6, 061 5, 791 Other assets 1,011 1.046 1,041 911 Deposits 4,442 4, 363 4, 208 5, 949 Note circulation 5, 944 5, 949 5,787 5, 509 Other liabilities 1,930 1, 916 2,015 1, 899 Demand deposits _ _ 363 464 415 647 National Bank of Hungary (mil- Other liabilities 1, 674 1, 628 1, 607 967 lions of pengos): Bank of Danzig (thousands of Gold 84 84 84 79 gulden): Foreign exchange reserve __ 48 47 47 31 Gold 29, 566 29, 552 29, 342 20, 783 Discounts.. 421 451 462 487 Foreign exchange of the reserve.. 465 310 1,615 1,723 Loans—To Treasury __ 104 102 101 80 Other foreign exchange 1,442 2, 076 2, 354 6,317 Other. 12 12 12 12 Loans and discounts ... _ _ 15, 359 15, 34.1 16, 372 15,038 Other assets 221 208 199 130 Other assets 4, 146 4,136 4, 224 4, 376 Note circulation 435 417 418 390 Note circulation _ 32, 654 32.018 31,373 28, 869 Demand deposits 174 200 202 109 Demand deposits 12.866 13, 243 13, 905 2, 651 Certificates of indebtedness 93 93 93 104 Other liabilities 19,179 19, 019 19,115 19, 044 Other liabilities 190 194 192 216 National Bank of Denmark? (mil Reserve Bank of India (millions lions of kroner): of rupees): Gold 118 118 118 118 Issue department: Foreign exchange. 15 17 15 27 Gold at home and abroad 444 444 444 Discounts _ _ _ 29 28 32 25 Sterling securities _. 793 773 683 Loans—To Government agencies 184 180 173 223 Indian Gov't securities 224 244 234 Other 155 141 135 142 Rupee coin 619 622 591 Securities 54 54 56 76 Note circulation 1,944 1,939 1,707 Other assets 63 65 63 38 Banking department: Note circulation 392 378 375 382 Notes of issue department ... 136 144 246 Deposits 78 78 72 155 Balances abroad _ 265 251 194 Other liabilities 149 147 146 113 Loans to Government 40 Central Bank of Ecuador (thou- Investments 76 74 50 sands of sucres): Other assets . 10 6 8 Gold * 33, 235 29,314 Deposits 381 368 432 Foreign exchange 25, 171 6,536 Other liabilities 106 106 106 Loans and discounts 38, 879 37, 783 Bank of Japan (millions of yen): Note circulation 57,313 46,756 Gold . 543 540 556 515 Deposits 38, 751 12, 280 Discounts 559 572 547 614 National Bank of Egypt1 (thou- Loans—Government 208 204 199 133 sands of pounds): Other... 74 93 148 184 Gold 6, 545 6,545 6, 545 Government bonds 651 629 571 554 Foreign exchange 3,515 3, 535 2,558 Other assets 223 228 179 183 Loans and discounts 4,136 5,059 5,016 Note circulation 1,450 1,464 1, 529 1,317 British, Egyptian, and other Deposits—Government 439 400 314 512 Government securities 39, 059 38, 742 39, 555 Other 62 83 83 69 Other assets 8,086 5, 999 5, 309 Other liabilities 308 319 275 285 Note circulation 21,153 21, 545 21, 246 Bank of Java (millions of guilders): Deposits—Government 10, 505 8,833 6,185 Gold 89 89 89 Other 21,533 21,321 23, 384 Foreign bills 3 2 1 Other liabilities 8,151 8,183 8,169 Loans and discounts 68 67 61 1 Items for issue and banking departments consolidated. 2 By decree of October 9,1936 (see BULLETIN for January 1937, p. 15), gold revalued at rate of 31.21 milligrams fine gold per crown; resulting increment converted into foreign exchange and carried partly in that item and partly in other assets. 3 Bank reorganized under law of April 7, 1936 (see BULLETIN for July 1936, p. 537, and August 1936, p. 632). First balance sheet on new basis was as of June 30, 1936 * By decree of June 13, 1936, gold in vault revalued at rate of 11.6466 sucres per gram of fine gold. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

618 FEDERAL RESERVE BULLETIN JUNE 1937 CENTRAL BANKS—Continued [Figures as of last report date of month] 1927 1936 1937 1936 Central bank Central bank Apr. Mar. Feb. Apr. Apr. Mar. Feb. Apr. Bank of Java—Cont. Bank of Portugal—Cont. Other assets 99 102 51 Non-reserve exchange 163 100 Note circulation _ . 182 178 155 Loans and discounts... 328 380 Deposits 51 55 23 Government debt. 1.044 1,046 Other liabilities 26 25 24 Other assets 1 220 1,027 Bank of Latvia (millions of lats): Note circulation . 2,062 2,026 Gold i _ 77 77 77 46 Other sight liabilities 1 105 1,033 Foreign exchange reserve 42 40 33 7 Other liabilities 1,054 864 Loans and discounts 120 118 117 113 National Bank of Rumania (mil- Other assets 47 44 52 51 lions of lei): Note circulation > 46 49 43 38 Golds C15 731 15 708 10, 971 Deposits 208 201 203 149 Special exchange accounts. _ 4,460 4,670 4,702 Other liabilities . . 31 30 32 30 Loans and discounts 6 329 6,146 5,553 Bank of Lithuania (millions of litu): Special loans 4 _ __ 2,157 2,432 2,474 Gold 77 77 53 Government debt._ 10 820 10, 555 11,151 Foreign exchange 6 6 7 21 Other assets _. 9,267 9,188 7,239 Loans and discounts 97 99 100 80 Note circulation 25 949 24, 961 22, 401 Other assets 33 34 32 23 Demand deposits ._ 11,657 11,755 8,580 Note circulation 112 114 113 107 Other liabilities 11 158 11,982 11,110 Deposits . __ _ 79 80 80 50 South African Reserve Bank Other liabilities 22 21 21 20 (thousands of pounds): Netherlands Bank (millions of guil- Gold. 26, 331 28, 783 27, 962 22, 931 ders) : Foreign bills 4,765 5, 455 6,014 9,446 Gold 985 920 879 710 Other bills and loans. __ 28 22 22 99 Silver (including subsidiary coin) 19 17 20 20 Other assets __ __ 15, 770 17, 048 16,086 13, 567 Foreign bills 2 2 2 1 Note circulation 16, 646 15 355 15, 918 13,068 Discounts 21 21 21 24 Deposits 27 237 31 904 30 478 29, 984 Loans 178 179 173 128 Other liabilities 3,011 4 049 3,688 2,990 Other assets 63 63 62 67 Bank of Sweden (millions of Note circulation 796 814 774 766 kronor): Deposits—Government 76 74 76 62 Gold 532 531 530 461 Other 349 269 261 75 Foreign assets 873 891 877 565 Other liabilities 46 45 45 48 Discounts 12 11 11 10 Reserve Bank of New Zealand Loans 22 22 23 25 (thousands of pounds): Domestic securities _ _ 32 33 33 33 Gold 2,802 2,802 2,802 Other assets _ __ _ 360 346 322 189 Sterling and gold exchange re- Note circulation 862 873 842 780 serve 19, 099 18, 804 24, 225 Demand deposits.. 782 775 795 391 Advances: To State or State un- Other liabilities 187 185 160 111 dertakings 7,130 8,369 Swiss National Bank (millions of Investments _ 2, 453 2,453 1,816 francs): Other assets 273 295 272 Golds 2,623 2,718 2,718 1,516 Note circulation 13,179 12, 753 10, 240 Foreign exchange 22 22 25 12 Demand deposits 16, 921 18, 327 17, 272 Discounts. __ 29 30 30 144 Other liabilities 1,656 1, 644 1,602 Loans.- 32 43 40 65 Bank of Norway (millions of Other assets __ _ _ 612 622 615 73 kroner): Note circulation 1,386 1,394 1,376 1,311 Gold 215 215 215 185 Other sight liabilities. _ 1,298 1,409 1,412 403 Foreign assets 103 93 83 Other liabilities _ . 633 633 640 97 Total domestic credits and Central Bank of the Republic of securities 254 227 229 226 Turkey (millions of pounds): • Discounts 149 143 171 Gold-_ 36, 709 36, 707 36, 704 30, 004 Loans C2) 25 26 19 Foreign Exchange—Free. _ ._ _ 23 54 62 445 Securities C2) 53 60 35 In clearing acccounts 46,488 48, 927 42, 728 18,111 Other assets (2) 16 11 17 Loans and discounts 34,175 30, 239 26,182 15, 972 Note circulation 411 410 399 364 Securities... 86,971 187,132 186, 978 186,023 Demand deposits—Government- 56 46 56 51 Other assets 24, 517 26, 202 24, 981 19, 272 Other 61 44 36 38 Note circulation 76, 376 80 975 180, 975 163, 293 Other liabilities (2) 59 58 59 Deposits 37, 022 38, 331 39,914 39,182 Central Reserve Bank of Peru Other liabilities 15,484 09, 955 96, 746 67, 354 (thousands of soles): tank of the Republic of Uruguay Gold and foreign exchange ___ 42, 351 (thousands of pesos): Discounts 30, 974 Issue department: Government loans 42, 300 Gold and silver 41,601 41,601 41,091 Other assets 8,480 1 Note circulation 92,162 89, 654 81, 330 Note circulation 86, 950 Banking department: Deposits 24, 617 Cash reserves 23,156 25, 681 40, 309 Other liabilities 12, 537 Loans and discounts.._ 82, 559 81,611 91, 647 Bank of Poland (millions of zlotys): Other assets 85, 977 84,168 54, 838 Gold 409 406 400 381 Deposits 01, 594 101, 981 13,789 Foreign exchange 36 35 36 15 Other liabilities 90 097 89, 479 73, 005 Loans and discounts _ __ 614 640 690 809 National Bank of the Kingdom of Securities 134 135 135 91 Yugoslavia (millions of dinars): Other assets 454 453' 437 452 Gold 1, 663 1,650 1,642 1, 497 Note circulation 996 1,000 1,000 1,010 Foreign exchange _ _ 706 623 693 307 Other sight liabilities 245 254 254 148 Loans and discounts 1, 669 1,683 1,696 1,617 Other liabilities 407 415 444 589 Government debt 2,250 2,249 2,249 2,273 Bank of Portugal (millions of Other assets... __ _ __ 1, 879 1,835 1,686 1,269 escudos): Note circulation 5, 463 5,381 5, 347 4,824 Gold 912 910 Other sight liabilities ___ . _ 1, 991 1,980 1, 909 1,553 Other reserves (net). 554 460 Other liabilities _____ 712 679 710 586 c Corrected. 1 By law of September 28, 1936, Latvian currency was linked to sterling at rate of 25.22 lats to the pound compared with previous market rate of about 15 lats to the pound. 2 Figures not yet available. 3 By royal decree of Nov. 6, 1936, gold revalued at rate of 153,333.33 lei per kilogram of fine gold (see]BuLLETiN for January 1937, p. 15). * Agricultural and urban loans in process of liquidation. 5 Gold revalued after September 30, 1936, at rate of 215 milligrams of fine gold per franc. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

619 JUNE 1937 FEDERAL RESERVE BULLETIN BANK FOR INTERNATIONAL SETTLEMENTS [In thousands of Swiss gold francs }] 1937 1937 1936 Assets Liabilities Apr. 30 Mar. 31 Apr. 30 Apr. 30 Mar. 31 Apr. i Gold in bars 32, 235 45, 087 23, 200 Demand deposits (gold) 21, 688 23, 309 19,3 Cash on hand and on current account with banks 32, 695 25,636 9,538 Short-term deposits (various curren- Demand funds at interest 25, 234 26, 538 14, 094 cies): Central banks for own account: Undiscountable bills and acceptances Demand 31,143 24,148 23, 606 (at cost): Time—Not exceeding 3 months 103, 744 105, 482 108,075 Commercial bills and bankers' acceptances 106, 654 101,347 137,125 Total 134, 887 129, 630 131, 681 Treasury bills.. 133, 379 130, 696 188, 792 Central banks for account of others: Total 240, 034 232, 043 325,917 Demand 4,268 4,248 7,679 Time—Not exceeding 3 months 2,989 Time funds at interest—Not exceeding Other depositors: 3 months 26,138 27,012 38, 952 Demand 354 229 522 Between 3 and 6 months 1, 666 1, 669 Time—Not exceeding 3 months 684 Sundry bills and investments: Long-term deposits: Maturing within 3 months: Annuity trust account 153,280 153,158 154, 764 Treasury bills 21,605 26, 864 27,158 German Government deposit 76, 640 76, 579 77, 382 Sundry investments 99, 451 68, 036 61, 993 French Government guaranty fund. 41, 727 42, 819 61, 930 Between 3 and 6 months: French Government deposit (Saar)_ 1,368 1,404 2,031 Treasury bills 10, 282 6, 637 21, 385 Sundry investments 48, 481 68, 233 63, 683 Total 273, 015 273, 959 296,106 Over 6 months: Treasury bills 77, 449 77, 890 51, 583 Capital paid in. 125,000 125,000 125,000 Sundry investments 5, 779 11,773 1, 694 Reserves: Legal reserve fund 3,784 3,784 3,324 Total 263,047 259,432 227,496 Dividend reserve fund 6, 092 6, 092 5,845 General reserve fund— 12,183 12,183 11,690 Other assets: Other liabilities: Guaranty of central banks on bills Guaranty on commercial bills sold 1,359 1,354 6,265 sold 1,302 1, 329 6,213 Sundry items 40,111 39, 045 40, 882 Sundry items 400 96 6, 566 Totalliabilities 622, 750 618,842 651, 976 Total assets. 622, 750 618, 842 651, 976 i See BULLETIN for December 1936, p. 1025. COMMERCIAL BANKS [Figures are as of end of month, except those for the United Kingdom, which are averages of weekly figures] Assets Liabilities (11 Lo m n i d ll o i U n o n n c s l i e o t a e f r d p in o K g u n b in d a s g n d k st s o e . m 1 r li F n i g g ) ures in re C se a r s v h es M ca n o s l o h n l t o e i a c 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 - O as t s h e e ts r Total D D e e p m o a s n it d s 2 Times lia O b t i h li e t r ies 1930—December 208 144 322 285 933 240 1,876 992 847 254 1931—December 184 119 246 297 905 222 1,737 868 846 237 1932—December 207 127 408 472 778 208 1, 983 991 963 216 1933—December 213 119 311 565 740 237 1, 941 1,015 900 244 1934—December 216 151 255 594 759 247 1,971 1,044 910 251 2935—December 221 159 322 605 784 231 2,091 1,140 924 231 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 May- 220 159 309 640 870 227 2,185 1,156 992 239 June 225 158 329 642 878 237 2,229 1,215 995 240 July 225 158 349 639 884 227 2,244 1,223 986 237 August 233 163 345 641 877 226 2,246 1,212 991 240 September 229 166 344 648 882 226 2,257 1,228 1,000 . 238 October __ _ _ _ __ _ 227 164 351 655 892 231 2,280 1,238 999 239 November 233 181 329 656 895 238 2,287 1,241 1,006 243 December 244 195 322 660 890 249 2,315 1,288 1,012 245 1937—January . _ _ _ 238 179 345 669 885 239 2,307 1,254 1,005 247 February __ _ __ 230 167 307 671 909 243 2,274 1,217 997 252 March 226 170 248 667 939. 254 2,244 1,200 1,003 259 April 230 177 241 661 951 256 2,252 263 1 Ten banks through 1935; District Bank included beginning January 1936. 2 Excluding deposits of the National Bank relating to offices outside the United Kingdom, which are included in the total. NOTE.—For other figures and explanation of table see BULLETIN for October 1933, pages 639-640. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

620 FEDERAL RESERVE BULLETIN JUNE 1937 COMMERCIAL BANKS—Continued Assets Liabilities Deposits Own (4 large banks. Figures in millions of Cash Due from Bills dis- Loans Other accept- Other francs) reserves banks counted assets Total Demand Time ances liabilities 1930—December 2,419 4,675 20, 448 10,743 2, 361 36, 681 35, 284 1,397 921 4,357 1931—December . 11,311 2,168 18, 441 9,274 2,130 38, 245 37, 023 1,222 576 4,503 1932—December 9,007 1, 766 22,014 7,850 1,749 37, 759 36, 491 1,268 295 4,331 1933—December _ 5,870 1,416 19, 848 8,309 1,827 32, 635 31, 773 862 273 4,362 1934—December 5,836 1,421 18, 304 8,159 1,717 30, 943 30,039 904 193 4 301 1935—December _ _. 3,739 2,48'I 16,141 8,025 1900 27, 553 26, 859 694 337 4,399 1936—January _- 3,451 2,5frJ 16, 601 7,765 1086 27, 548 26, 859 689 349 3,568 February 3,431 2,52*I 16,470 8,006 1101 27, 603 26, 903 700 338 3,595 March - 3,587 2,61'1 16,135 7,700 1 27,194 26, 522 672 391 3 677 April 3,517 2,902 16,199 7,677 1,270 27,410 26, 714 696 397 3,757 May —- 3,513 3,032 16,014 7,542 1,333 27,199 26, 523 676 424 3,812 June 3,494 2,768 14,972 7,328 1,385 25, 655 25,022 633 394 3,897 July 3,206 2,410 15,410 7,215 1,445 25,334 24,761 573 359 3 994 August 3,097 2,326 15, 445 7,031 1,451 24,979 24,451 528 335 4,035 September 3,083 2,757 14,876 7,398 1,457 25,137 24,613 524 368 4,066 October 3,186 2,766 17, 070 7,452 1,727 27, 549 27,028 521 408 4,244 November _ 3,173 2,839 17, 298 7,625 1,824 28,015 27, 467 548 454 4,290 December 3,100 2, 975 17, 582 7,631 1,957 28, 484 27,955 529 473 4,289 1937—January __ _ _- 2, 852 3,589 18, 289 7,949 1, 340 29, 831 29, 304 527 561 3, 626 February 2,798 3,770 17,825 8,056 1,397 29, 644 29, 061 583 602 3,600 Assets Liabilities (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 d te i d s- Loans Se t c ie 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 b f r t a r e a o n d i m n k it s e s d l O ia t t i b h e i s e li r - 1930—November __ ._ - 191 1,483 2. 453 7,416 482 880 9,091 3, 857 5,233 1,986 1,828 1931—November 173 817 1,431 5, 377 807 1,127 6,062 3,252 2,810 1, 328 2.341 1932—November _ - 143 583 1,631 4,570 938 991 6,161 2, 958 3, 203 1,146 1,550 1933—November 131 471 1,702 3,731 860 1, 003 5,754 2,624 3,130 661 1,481 1934—November _ 115 393 2, 037 3,331 874 983 5, 816 2,731 3, 085 485 1, 432 1935—November 139 316 2,162 2,884 1,027 983 5, 376 2, 435 2,941 686 1,449 1935—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 IVIarch 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 May - 141 300 2,406 2,884 980 873 5,621 2,622 2,999 636 1,327 June 175 295 2,435 2,858 1,008 839 5,712 2,688 3,023 622 1,276 July 146 263 2,363 2,843 1,037 824 5,557 2,595 2,962 613 1,306 August 138 274 2,329 2,826 1,047 816 5,533 2,529 3,005 605 1,291 September 180 287 2,360 2,779 1,066 847 5,621 2, 575 3,045 575 1,323 October 130 273 2,569 2,735 1,075 858 5,712 2,644 3,068 586 1,342 November 137 269 2,567 2,729 1,112 851 5,751 2,661 3,090 579 1 334 1937—January 154 303 2, 895 2,679 1,020 837 5,973 2,923 3,050 557 1, 357 February _ __ __ 130 301 2, 966 2,673 1,022 822 6,029 2,760 3,270 578 1,307 March 201 315 2,908 2,732 1,014 813 6,135 2,942 3,194 559 1,288 Assets Liabilities Canada Entirely in Canada S a e l b o c r a u o n r a s i d ty D a e d p a o s e i x t c s l u d p d e a p i y n o a g s b it i l s n e te in rb C an a k n- (10 cha l r io te n r s e d o f b C a a n n k a s d . ia F n ig d u o r l e la s r s i ) n mil- Cash Security O lo t a h n e s r an f d r d o u m n e et Se t c ie u s ri- O as t s h e e ts r ci N r ti c o o u t n l e a- l O ia ti t b e h i s e li r reserves loans and dis- foreign Total Demand Time counts banks 1930 December 207 205 1,275 171 604 602 133 2,115 689 1,426 816 1931—December 201 135 1,253 146 694 510 129 2,058 698 1,360 752 1932—December 211 103 1,104 155 778 439 115 1,916 538 1,378 760 1933 December 197 106 1,036 134 861 432 121 1, 920 563 1,357 725 1934—December 228 103 977 155 967 449 124 2.035 628 1,407 718 1935 December 228 83 945 141 1,155 485 111 2,180 694 1,486 745 193Q—January 220 78 874 150 1,207 472 112 2,144 645 1,499 745 Februarv 224 78 869 151 1,265 444 118 2,152 635 1,517 761 Miarch - 227 77 864 154 1,316 459 117 2,197 665 1,532 783 April -- --- 228 83 862 145 1,314 478 114 2,229 692 1,536 767 225 87 828 131 1,345 446 116 2,193 666 1,527 753 June - 230 91 777 113 1,368 502 115 2,207 702 1,505 757 July 227 91 768 110 1,357 481 113 2,174 680 1,494 748 August - 225 91 776 157 1,355 487 115 2,175 672 1,503 800 SeDtember 226 105 807 146 1,380 494 111 2,263 762 1,501 785 October - 232 109 816 146 1,363 491 112 2,261 751 1,510 784 November 264 116 800 179 1,316 485 109 2,269 722 1 547 783 December - 240 114 791 161 1,384 507 103 2,303 755 1,548 790 1937—January 247 119 796 173 1,412 468 103 2, 330 782 1,549 781 February - 239 119 805 214 1,422 483 108 2, 369 805 1, 564 804 March -- 242 124 814 161 1,427 516 105 2,370 786 1,584 810 1 Combined monthly balance sheets not published for December. Prior to merger of two of the banks in February 1932 figures refer to six large srlin banks. Beginning in 1935 figures are not entirely comparable with those shown for previous years due to changes m reporting practice, ee BULLETIN for June 1935, p. 389.) NOTE.—For other back figures and explanation of table see BULLETIN for October 1933, pp. 641-646, and June 1935, pp. 388-390. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

621 JUNE 1937 FEDERAL RESERVE BULLETIN DISCOUNT RATES OF CENTRAL BANKS [Percent per annum] Date effective K U in n g i d te o d m France Ce m n G t a r e a n r l y - ba I n ta k l o y f— N l e a t n h d e s r- Sw lan itz d er- b C an e k n tr of a — l M R 2 a a 9 t y e ef D fe a ct t i e ve b C an e k n tr of a — l R M a 2 a t 9 y e ef D fec a t t i e ve In effect Jan. 1, 1936 2 6 4 5 3K Albania 6 April 1, 1937 Italy 4H May 18, 1936 Jan 2 1936 5 Argentina... 3H Mar. 1, 1936 Japan ... 3.29 Apr. 7, 1936 jan 10 4 ... _ Austria VA July 10, 1935 Java _ 3 Jan. 14, 1937 Jan 16 Belgium.™.. 2 May 16, 1935 Latvia 5 Nov. 1, 1936 Feb 4 VA Bolivia...^.. 6 July 5, 1932 Lithuania... July 1, 1936 Feb 7 %y British India 3 Nov. 28, 1935 Netherlands. Dec. 3,1936 Mar. 28 — 5 2 Bulgaria 6 Aug. 15, 1935 New Zea- M M M a a a y y y 3 1 7 0 8 6 w 2 C C Ch o an i l l o a e m da bia. __3*- i 4 y * , J J M a u n l a y . r . 1 1 8 9 1 , , , 1 1 1 9 9 9 3 3 3 6 5 3 N Pe o l r a r u n w d a . y _ _ 2 6 4 J M D u e a n c y e . 2 2 7 9 0 , , , 1 1 1 9 9 9 3 3 3 6 2 6 June 4 _ Czechoslo- Poland 5 Oct. 26, 1933 J J J J J J S O O O S u u u u u u e e c c c n l n n n l p p t y t t y e e e e . t t 1 . 7 9 2 2 1 2 2 3 9 6 2 4 0 6 5 0 5 -. 2 2 3 5 4 3 5 H 3 3 4 H 2 G H F G E F D D E E r i s c l e r u a e v n a e t u r n n S n o n a l e m a a z g k n c m c a d n i a a i e l e i g o a v a d a n ry r a r y k d . o _ r. _ 4 4 6 4 4 4 4 4 3 4 ^ J J A A S J D J N N O a a a a e u u e c o o n n n n p c g t g v v . . . . . t . . . . . . 2 2 2 2 3 1 4 8 3 9 3 2 2 0 1 1 9 , , , , , , , , , , , 1 1 1 1 1 1 1 1 1 1 1 9 9 9 9 9 9 9 9 9 9 9 3 3 3 3 3 3 3 3 3 3 3 6 5 2 5 7 4 7 2 6 7 5 T U Y T S S S S R P J w p w o u o n u u d . a u r r i o m g e i t t i k t S t d e u m o n z h e a e d . g s e y n n A \ l S r a K a i l l a . f a v r i n n i i R c a d g _ a . . - - . .. 4 V 8 4 3 5 5 2 5 K M H j A | M J J D M M N M F D u u e e e o a a a a n l b c c y v y y r r e . . . . . . 3 2 2 1 1 1 1 0 2 6 2 5 2 1 5 5 1 , , , , , , , , , , 1 1 1 1 1 1 1 1 1 1 9 9 9 9 9 9 9 9 9 9 3 3 3 3 2 3 3 3 3 3 2 5 3 6 7 4 3 6 5 3 Oct 20 2^ Nov. 26 VA Dec 3 2 Jan 28,1937 4 In effect May 29,1937 2 4 4 2 MONEY RATES IN FOREIGN COUNTRIES [Percent per annum] United Kingdom (London) Germany (Berlin) Netherlands (Amsterdam) Month ac 3 B c m e a p n o t 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 r 3 s y Da m y o -t n o e - y day o a B n ll a o d n w e k p a e o n r s c s i e ' ts d P i r s r i c a v o t a e u t n e t M 1 o m ne o y n f t o h r Da m y o -t n o e - y day d P i r s r i c a v o t a e u t n e t M 1 o m ne o y n f t o h r 1936—April 3.00 3.04 2.83 1.19 1.27 May 2.92 2.89 2.76 2.27 1.82 June 2.88 2.74 2.67 4.05 3.95 July 2.88 2.73 2.96 2.04 1.73 August 2.88 2.84 3.01 1.37 1.20 September 3.00 2.89 3.01 1.33 1.29 October... 2.94 2.82 2.82 2.03 2.51 November 3.00 2.84 2.79 1.00 1.55 December. 3.00 2.88 3.05 1.48 1937—January- 3.00 2.88 2.54 P. 56 February.. 3.00 2.86 2.47 March 3.00 2.86 3.10 P. 24 April 2.90 2.71 2.55 P. 22 Sw la it n z d er- ( B B e r l u g ss iu el m s) F (P ra a n ri c s © ) (M Ita il l a y n) Hungary S ( h w S o t e o lm d ck e ) n - Japan (Tokyo) Month d P is r r i c a v o t a e u t n e t d P is r r i c a v o t a e u t n e t d P is r r i c a v o t a e u t n e t d P i r s r i c a v o t a e u t n e t c c i o a P l m r i p m m a e p e r e - r Da m y o -t n o e - y day L m oa o to 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 1936—April 2.25 1.38 5.03 5.00 4 2% 4.97 3.11 May 2.25 1.38 5.60 4.78 4 2% 4.93 2,73 June 2.25 1.38 5.60 4.50 4 2' 4.83 2.63 July 2.25 1.38 3.30 4.50 4 4.75 2.53 August 2.25 1.38 3.00 4.50 4 2K 4.75 2.69 September 1.98 1.38 3.38 4.50 4 -6^ 2% 4.75 2.81 October.,_ 1.69 1.29 2.52 4.50 4 2% 4.75 2.92 D N e o c v e e m m b b e e r r . 1 1 . .4 2 6 5 1 1 . . 0 0 0 0 1 1 . . 9 9 9 6 4 4 . . 5 5 0 0 4 4 -6H 1% 4 4 . . 7 7 5 5 2 2 . . 7 8 4 6 1937—January.._ 1.25 1.00 2.22 4.50 4 4.75 2.63 February.. 1.18 1.00 4.01 4.50 4 -6H 4.75 2.67 March 1.00 1.00 4.06 4.50 4.75 2.83 p Preliminary. NOTB.—For explanation of table see BULLETIN for November 1926, 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

622 FEDERAL RESERVE BULLETIN JUNE 1937 FOREIGN EXCHANGE RATES [Average of noon buying rates for cable transfers in New York. In cents per unit of foreign currency] Argen- Aus- Austric Bel- Brazil (milreis) British Bul- Colom- Year or month tina tralia (schil- gium India garia Canada Chile China bia Cuba (pound) ling) Free (rupee) (lev) (dollar) (yuan) (peso) (peso) Official market 1929 ____ 95.127 480. 83 14.058 13.912 11.8078 36. 202 .7216 99. 247 12. 0601 41. 901 96. 551 99.965 1930 ___. 83. 505 458. 60 14.089 13.952 10.7136 36.067 .7209 99. 842 12. 0785 29. 917 96.493 99.952 1931 66.738 351. 50 14.023 13.929 7.0290 33. 690 .7163 96. 353 12.0669 22.437 96. 570 99. 930 1932_— 58. 443 279.93 13. 960 13.914 7.1223 26. 347 .7193 88.090 7. 9079 21. 736 95. 275 99. 941 1933 72. 801 337. 07 15. 448 17. 900 *. 9630 31.816 1.0039 91. 959 7. 6787 28. 598 81. 697 99.946 1934___ 33. 579 400.95 18. 793 23.287 8.4268 37.879 1. 2852 101.006 10.1452 34.094 61. 780 99. 936 1935 32. 659 388.86 18. 831 18.424 8. 2947 36. 964 1. 2951 99. 493 5. 0833 36. 571 56. 011 99. 920 1936 33.137 395. 94 18. 792 16. 917 8. 5681 5. 8788 37.523 1. 2958 99.913 5.1240 29. 751 57.083 99.909 1936—May. _ 33. Ill 396.09 18. 722 16. 938 8. 5755 37. 504 1.2844 99. 806 5.0775 29.690 57.004 99.900 June __ 33. 418 399.99 18. 759 16.907 8. 6310 37.872 1. 2838 99. 721 5.0659 29.890 56. 900 99.900 July 33. 489 400.15 18. 848 16.899 8. 5349 37. 889 1. 2913 99. 900 5.1243 29. 967 56.900 99.900 August 33. 503 400. 34 18. 838 16.862 8. 5222 5.8367 37. 931 1. 2988 99. 978 5.1725 30. 048 56.900 99.904 September- 33.611 401.06 18. 845 16.893 8. 6445 5. 8901 38.017 1. 2978 100. 017 5.1691 29. 940 56. 505 99. 901 October 32.667 390. 33 18. 732 16. 835 8.7011 5.8452 36. 991 1. 2848 100. 022 5.1727 29. 331 56. 501 99. 924 November. 32. 583 389.54 18.687 16. 907 8.6662 5. 8631 36.913 1.2795 100.120 5.1688 29.466 57.097 99. 916 December _. 32. 718 390.99 18. 692 16.901 8. 6981 5. 9525 37. 088 1. 2779 100. 062 5.1719 29. 525 57. 390 99.916 1937—January- 32. 718 390.98 18.682 16. 860 8. 7080 6.0812 37.094 1. 2873 99. 960 5.1726 29.654 57. 390 99.917 February. . 32. 627 389. 93 18. 677 16.861 8. 7053 6.1076 36. 973 1. 2903 99. 964 5.1731 29.600 57. 234 99. 917 March 32. 570 389. 26 18. 677 16. 847 8. 7021 6.1069 36. 888 1. 2884 100.051 5.1726 29.664 57.008 99. 917 April 32. 774 391. 78 18. 687 16. 860 8. 7105 6. 2538 37.120 1. 2875 100.120 5.1725 29. 714 56. 956 99.918 Year or month s C ( l k o z o v e r c a u h k n o a ! ) - ( D m kr e a o n r n k - e) ( E p g o y u p nd t ) F (m in a l r a kk n a d ) F (f r r a an n c c ) e ( m m r G e a a i e c r n r h k y - s ) - G (d m r r e a a e c ) h ce - ( H K do o o ll n n a g g r) ( H p g e a u n r n g y - d) I ( t li a r l a y ) J ( a y p en a ) n M (p e e x s i o c ) o N ( l e f a l t o n h r d i e n s r ) - 1929 2.9609 26. 680 498.07 2. 5160 3.9161 1.2934 47.167 17. 441 5. 2334 46.100 48.183 40.162 1930 2. 9640 26. 765 498. 60 2. 5169 3. 9249 23. 854 1. 2959 33. 853 17.494 5. 2374 49. 390 47.133 40. 225 1931 2.9619 25. 058 465.11 2. 3875 3.9200 23.630 1.2926 24.331 17. 452 5. 2063 48. 851 35.492 40. 230 1932 2.9618 18. 832 359. 54 1.5547 3. 9276 23. 749 .8320 23. 460 17.446 5.1253 28. Ill 31. 850 40. 295 1933 3.8232 19.071 434. 39 1. 8708 5. 0313 30. 518 .7233 29. 452 22. 360 6. 7094 25.646 28.103 51. 721 1934 4. 2424 22. 500 516. 85 2. 2277 6. 5688 39. 375 .9402 38. 716 29. 575 8. 5617 29.715 27. 742 67. 383 1935 ... 4.1642 21. 883 502. 60 2.1627 6. 6013 40. 258 .9386 48. 217 29.602 8.2471 28. 707 27. 778 67. 715 1936 4.0078 22.189 509. 68 2.1903 6.1141 40. 297 .9289 31.711 29.558 7. 2916 29. 022 27. 760 64. 481 1936—May 4.1432 22.184 509. 55 2.1901 6. 5858 40. 285 .9338 32.463 29.424 7. 8560 29.075 27. 763 67. 634 June _ 4.1375 22.405 514.62 2.2098 6. 5934 40. 273 .9316 32.260 29. 458 7.8645 29. 392 27.764 67. 686 July 4.1497 22.419 514. 95 2. 2106 6. 6202 40. 321 .9400 32.040 29.492 7. 8845 29. 326 27. 765 68.078 August 4.1318 22. 434 515. 32 2. 2118 6. 5853 40. 221 .9387 31.152 19.777 7. 8673 29.404 27. 753 67. 904 September- 4.1319 22.480 516. 76 2. 2173 6. 3409 40. 083 .9347 31.104 19. 772 7. 8514 29. 414 27. 753 66. 250 October 3. 6474 21. 866 502. 24 2.1578 4. 6662 40.196 .8965 30. 359 19. 774 5. 5299 28. 609 27. 747 53. 632 November- 3.5380 21. 818 501.17 2.1531 4. 6472 40. 223 .8935 30.462 19. 776 5. 2603 28. 559 27.750 53.991 December _ 3. 5200 21.907 503. 20 2.1611 4. 6675 40. 230 .8973 30. 540 19. 778 5. 2609 28. 512 27. 750 54. 566 1937—January-.. 3. 4922 21. 908 503.17 2.1607 4. 6672 40. 225 .8984 30. 566 19. 776 5. 2610 28. 537 27. 750 54. 752 February- 3.4883 21. 847 501. 78 2.1579 4.6555 40.226 .8965 30. 403 19. 782 5.2608 28. 529 27. 750 54. 686 March 3. 4879 21. 807 500. 87 2.1531 4. 5945 40. 215 .8951 30. 355 19. 779 5. 2608 28. 494 27. 750 54. 702 April 3. 4862 21. 945 504. 07 2.1656 4. 4963 40.206 .9003 30. 509 19. 785 5. 2607 28. 635 27. 751 54. 757 Year or month Z ( e p N a o e l u a w n n d d ) N (k o r r o w ne a .) y P ( o zl l o a t n y d ) ( P es o g c r u a t d l u o - ) R ( u n le m i u a ) a- S A p o o fr u u i n c th d a )( S p p es a e i t n a) S S ( m d t e o r e t l a t n la l i e t r t s ) s - ( S k d r w e o n e n - a) e S ( r f w r l a a i n t n c z d ) - T p u o r u k n e d y ) U ( K p d n o i o u i n m t n g e d - d ) ( U g p u e r s a u o y - ) ( Y s d l i a u n v g a i r o a ) - 1929 483.21 26.683 11.194 4. 4714 .5961 483. 27 14. 683 56. 012 26. 784 19. 279 48.411 485. 69 1. 7591 1930 468. 22 26. 760 11. 205 4. 4940 .5953 483. 79 11. 667 55. 964 26. 854 19. 382 47.061 486. 21 85. 865 1. 7681 1931 415. 29 25. 055 11.197 4. 2435 .5946 480. 76 9.545 52. 445 25. 254 19.401 47.181 453. 50 55. 357 1.7680 1932 320.19 18.004 11.182 3.1960 .5968 476. 56 8.044 40. 397 18. 471 19. 405 47. 285 350.61 47.064 1.6411 1933 340.00 21. 429 14. 414 3. 9165 .7795 414. 98 10. 719 49. 232 22. 032 24. 836 60. 440 423. 68 60. 336 1. 7607 1934 402. 46 25. 316 18. 846 4. 6089 1.0006 498. 29 13.615 59.005 25. 982 32. 366 79.047 503. 93 79.956 2. 2719 1935 391. 26 24. 627 18. 882 4.4575 .9277 484. 66 13. 678 57.173 25.271 32.497 80.312 490.18 80. 251 2. 2837 1936 398. 92 24. 974 18. 875 4. 5130 .7382 485. 05 12. 314 58. 258 25. 626 30.189 80. 357 497. 09 79. 874 2.2965 1936—May 399. 02 24. 969 18. 792 4.5115 .7309 491. 59 13. 645 58. 240 25. 619 32. 391 80. 278 496. 97 79. 720 2. 2866 June __ 402. 84 25. 218 18. 800 4. 5455 .7273 496. 53 13. 659 58.833 25. 877 32. 425 80.270 501.92 79. 709 2. 2871 July 403. 26 25.233 18. 915 4. 5568 .7279 497.07 13. 714 58. 873 25. 893 32. 724 80. 355 502. 25 79.820 2. 2985 August 403. 42 25. 249 18. 827 4. 5558 .7317 497.19 13. 643 58.916 25.910 32. 599 80. 272 502. 59 79.719 2. 2926 September 403. 97 25.304 18. 824 4. 5586 .7315 497. 99 12. 347 59.095 25. 965 31. 418 80.145 503. 63 79. 679 2. 2912 October 393. 25 24. 608 18.828 4.4475 .7309 484. 32 8.954 57. 446 25. 253 22.993 79. 834 79.857 2. 2956 November 392.36 24. 555 18. 825 4.4373 .7289 483. 43 8.798 57. 314 25.196 22. 984 79. 883 80.045 2. 2990 December 393. 87 24. 656 18. 853 4. 4514 .7285 485. 33 7.727 57. 544 25. 300 22.985 80.162 490. 78 80.000 2. 3003 1937—January 393. 82 24. 658 18. 924 4. 4487 .7273 485. 40 7.099 57. 549 25. 301 22.936 80.156 490. 75 78. 926 2. 3022 February 392. 92 24. 589 18. 929 4. 4457 .7275 484. 24 6. 736 57.404 25. 232 22. 829 79. 700 489. 39 78. 856 2. 3059 March 392. 32 24.544 18. 939 4.4411 .7284 483. 81 6.149 57.194 25. 186 22. 792 79. 953 488. 51 78. 753 2. 3057 April 394. 76 24. 699 18. 959 4. 4599 .7286 486. 89 5.711 57. 640 25. 339 22. 824 80. 246 491. 63 78. 626 2. 3056 NOTE.—For information concerning nominal status of exchange quotations, special factors affecting the averages, and changes in the basis of quotation, see note in BULLETIN for April 1937, p. 371. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

623 JUNE 1937 FEDERAL RESERVE BULLETIN PRICE MOVEMENTS IN PRINCIPAL COUNTRIES WHOLESALE PRICES—ALL COMMODITIES [Index numbers] Year or month (1 U S 92 n t 6 a i = t t 1 e e 0 d s 0) (1 C 9 a 2 n 6= a 1 d 0 a 0) K (1 U 9 in 3 n 0 g i = d t 1 e o 0 d m 0) (1 F 9 r 1 a 3= n 1 c 0 e 0) G (19 e 1 r 3 m = a 10 n 0 y ) (19 I 2 t 8 a = l 1 y 00) 1 ( 9 O 0 c 0 t = o 1 b 0 e 0 r ) ( N 1 l 9 e a 1 2 t n 0 6 h 0 d - ) e 3 s r 0 - = ( S J = w u l 1 l a i y 0 t n 0 z 1 d ) e 91 r- 4 1926 100 100 695 134 237 106 144 1927 _ 95 98 642 138 225 103 142 1928 -_. 97 96 645 140 100 226 102 145 1929 95 96 627 137 95 220 100 141 1930 86 87 100 554 125 85 181 90 126 1931 73 72 88 502 111 75 153 76 110 1932 65 67 86 427 97 70 161 65 96 1933 66 67 86 398 93 63 180 63 91 1934 . 75 72 88 376 98 62 178 63 90 1935 80 72 89 338 102 68 186 62 90 1936 81 94 411 104 76 J>197 64 96 1936—March 80 72 92 376 104 75 191 62 91 April . 80 72 92 371 104 76 192 61 92 May 79 72 92 374 104 76 192 61 92 June 79 72 93 378 104 76 194 62 92 July .. 81 74 94 391 104 75 197 62 93 August 82 76 95 403 105 76 197 63 93 September . _ 82 76 96 420 104 77 201 63 97 October 82 77 98 471 104 77 200 68 103 November__ __ _ 82 77 98 492 104 78 204 70 105 December 84 80 101 519 105 79 215 71 107 1937—January.. _ 86 81 103 538 105 '81 233 73 108 February 86 83 104 533 106 '83 230 74 111 March 88 86 107 '550 106 84 240 76 113 April 88 86 109 552 106 248 77 p Preliminary. " Revised. WHOLESALE PRICES—GROUPS OF COMMODITIES [Indexes for groups included in total index above] United States (1926 = 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 t o r d d ia u u l s c - ts a p n r F o d a d r f u m o c o t d s p I r n t o r d d ia u u l s c - ts p A r t g o u r d r ic u a u c l 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 d l s s r u h u e a s m e c - w d ts i- p tr I r i i n o s a h d d l e u u f d s c i - 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 87 542 464 104 96 103 136 1932 48 61 70 85 482 91 •86 118 1933 51 61 71 87 420 87 75 113 1934 65 71 78 90 393 361 96 76 116 1935 79 84 78 90 327 348 102 84 119 1936 81 82 96 426 397 105 121 1936—March 77 80 94 35S 105 120 April 77 80 94 359 105 120 May 75 78 94 392 358 105 121 June 78 80 94 394 364 106 121 July 81 81 90 405 378 106 121 August 84 83 94 425 384 106 121 September 84 83 95 97 449 396 105 122 October._ 84 83 98 97 487 457 104 122 November. 85 84 97 99 500 484 103 123 December 99 102 522 516 104 123 1937—January.. 99 105 532 543 103 123 February _ 99 107 516 548 103 123 March 101 111 528 '570 104 124 April 92 86 102 113 522 104 124 r Revised. Sources—See BULLETIN for March 1931, p. 159, March 1935, p. 180, October 1935, p. 678, March 1937, p. 276, and April 1937, p. 372. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

624 FEDERAL RESERVE BULLETIN JUNE 1937 PRICE MOVEMENTS IN PRINCIPAL COUNTRIES—Continued RETAIL FOOD PRICES COST OF LIVING [Index numbers] [Index numbers] Y m e o a n r t o h r 1 S U 9 t 1 2 n a 9 5 2 i t = 3 t e - e 1 s d 0 l 019 E l 1 J a 4 n u n = g l d 1 y - 00 1 F 9 J r 1 u 4 a = l n y 1 c 0 e 0 19 m 1 G 1 9 4 a e 1 = r 3 n - - 1 y 00 N 19 l e a 1 1 9 t 3 n 1 h = 1 d e - 1 s r 0 - 01 S 9 l J 1 w a e u 4 r n i = l - t y d 1 z 0 - 0 Y m e o a n r t o h r 1 U S 92 t n 1 5 a 9 i 2 = t t 3 1 e e - s d 0019 E l J 1 a u 4 n n = l g y d 1 - 001 F 9 J r 1 J u 4 a an = n n . 1 e - c 0 e 01 m 9 G 1 1 9 a 4 e 1 = n r 3 1 y - - 00 N 19 l e 1 a 1 9 t 3 n 1 h = 1 d e 1 - s r 0 - 01 S 9 l J w 1 a e u 4 r n i = l - t d y 1 z * 0 - 0 1926 161 554 146 161 160 1926 103 170 505 142 168 162 1927 156 557 153 163 158 1927 . . 102 164 514 148 168 160 1928 157 549 153 166 157 1928 100 166 519 152 169 161 1929 105 154 611 156 162 156 1929 99 164 556 154 168 161 1930 100 145 614 146 150 152 1930 97 158 581 148 161 158 1931 82 131 611 131 136 141 1931 89 148 569 136 151 150 1932 68 126 536 116 119 125 1932 80 144 526 121 141 138 1933 66 120 491 113 120 117 1933 76 140 520 118 139 131 1934 74 122 481 118 124 115 1934 78 141 516 121 140 129 1935 80 125 423 120 118 114 1935 81 143 483 123 136 128 1936 82 130 470 122 120 120 1936 82 147 507 125 «132 130 1936—Mar... 80 129 446 122 117 118 1936 Mar. 146 486 124 •131 130 April... 80 126 443 122 119 April... 81 144 124 130 May... 80 125 456 122 119 May 144 124 130 June... 84 126 458 123 119 120 June- 144 497 125 131 130 July—. 84 129 446 124 120 July .. 82 146 125 130 Aug 84 129 460 124 120 Aug 146 125 130 Sept.... 84 131 483 122 121 121 Sept.... 82 147 504 124 132 130 Oct. 83 132 504 122 124 123 Oct 148 124 134 132 Nov.__ 83 136 520 121 124 123 Nov. 151 124 134 132 Dec 83 136 534 121 122 123 Dec... 82 151 540 124 133 132 1937__jan< _ 85 136 562 121 124 126 1937 Jan. 151 125 134 133 Feb.... 85 135 577 122 122 129 Feb. 151 125 134 136 Mar. 85 135 577 122 129 Mar 84 151 581 125 136 Apr 86 135 580 122 Apr. 151 125 1 From August 1933 to July 14, 1936, the Bureau of Labor Statistics published biweekly indexes, Figures given are for the date nearest 15th of month. 2 Index recalculated as from March 1936 (see BULLETIN for April 1937, p. 373). Sources.—See BULLETIN for April 1937, p. 373. SECURITY PRICES [Index numbers except as otherwise specified] Bonds Common stocks (1926 average=100) Year or month ( U p a S v r n i t e c i a r t e a t e ) g e d i e s ( 1 E D 9 n e 2 c 1 g e = l m a 10 n b 0 e d ) r ( a 1 F g 91 r e 3 = a 1 n a 0 v c 0 e e ) r- G ( e a p r v r m e ic r e a a ) g n e y (1 N 9 l e a 2 t 9 n h = d e 1 s 0 r 3 - 0) U S n ta it t e e d s Fngland France Germany N l e a t n h d e s r- Number of issues. _ 60 87 36 139 8 419 278 300 329 1926 97.6 110.0 57.4 100.0 100.0 100.0 100.0 100 1927 100.7 110.7 71.7 118.3 107.0 123.2 145.0 109.8 1928 100.8 112.3 80.8 85.5 149.9 115.9 178.1 136.1 113.7 1929 98.0 110.2 85.1 81.4 100 190.3 119.5 217.6 122.8 112.7 1930. _ 99.3 111.8 95.8 83.3 104.3 149. 8 102.6 187.6 100.2 82.3 1931 • 90.9 108.4 96.9 2 83.4 104.1 94.7 78.9 132.2 2 78.0 50.0 1932 69.5 113.2 88.6 2 67.1 94.8 48.6 67.9 105.2 2 50.3 31.4 1933 _ _ 73.4 119.7 81.3 82.5 105.3 63.0 78.6 99.6 61.7 33.6 1934 84.5 127.5 82.1 90.7 113.4 72.4 85.7 83.3 71.1 30.8 1935 88.6 129.9 83.5 95.3 107. 8 78.3 86.3 79.7 82.9 29.8 1936 __, 97.5 131.2 76.3 95.8 109.1 111.1 97.0 77.2 91.6 38.3 1936-March 96.6 130.2 75.2 95.3 105.5 108.7 94.1 84.1 85.6 35.0 April 95.9 131.5 75.8 95.3 105.5 108. 9 95.5 82.8 88.3 33.5 May . 95.5 131.1 74.7 95.5 103.4 101.0 93.8 71.2 91.1 32.8 June _ 96.2 130.6 73.8 95.8 100.2 105.6 94.0 66.1 93.2 33.7 July 97.1 131.0 73.2 95.9 106. 0 109.2 94.7 59.2 94.6 34.2 August 97.7 131.6 73.2 96.1 108. 5 113.0 97.3 58.8 93.4 35.0 September.__ 98.6 132.1 75.2 96.1 109.9 114.1 98.2 65.7 91.8 35.5 October 99.6 132.9 80.8 96.2 117. 5 118.7 102.1 83.7 97.2 47.5 November... 99.8 132.0 78.8 96.3 120.0 124.2 103.2 89.7 97.8 53.8 December. __ 99.9 130.9 78.4 96.4 120.3 123.1 103.5 94.8 96.7 55.4 1937—January 100.3 129.7 77.5 96.7 121.9 126.4 104.2 114.6 97.8 63.1 February 100.0 125.5 75.1 97.4 121.2 129. 5 103.8 113.3 99.2 67.3 March 98.5 124.3 74.6 97.7 121.6 129.9 102.7 112.0 100.3 69.3 April 96.6 125.3 72.6 98.5 124.5 101.0 96.6 101.5 1 Prices derived from average yields for 60 corporate bonds as published by Standard Statistics Co. 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. 3 Index of reciprocals of average yields. Average yield in the base year 1929 was 4.57 percent. Sources— See BULLETIN for February 1932, p. 121, June 1935, p. 394, and April 1937, p. 373. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE DIRECTORY 625 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 RONALD RANSOM, Vice Chairman JOSEPH A. BRODERICK JOHN K. MCKEE M. S. SZYMCZAK CHESTER C. DAVIS 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 J. P. DREIBELBIS, Assistant General Counsel GEORGE B. VEST, Assistant General Counsel B. MAGRUDER WINGFIELD, 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 EDWARD 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 0. 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) W. W. ALDRICH. JOSEPH A. BRODERICK District No. 3 (PHILADELPHIA) .... HOWARD A. LOBB, CHESTER C. DAVIS Vice-President WM. A. DAY WM. MCC. MARTIN District No. 4 (CLEVELAND) L. B. WILLIAMS. JOHN K. MCKEE District No. 5 (RICHMOND) CHARLES M. GOHEN. B. A. MCKINNEY District No. 6 (ATLANTA) EDWARD BALL. RONALD RANSOM District No. 7 (CHICAGO) EDWARD E. BROWN. JOHN S. SINCLAIR District No. 8 (ST. LOUIS) W'ALTER W. SMITH. M. S. SZYMCZAK President. District No. 9 (MINNEAPOLIS) .... JOHN CROSBY. CHESTER MORRILL, Secretary District No. 10 (KANSAS CITY) ... W. T. KEMPEB. WALTER WYATT, General Counsel J. P. DREIBELBIS, Assistant General Counsel District No. 11 (DALLAS) R. E. HARDING. E. A. GOLDENWEISER, Economist District No. 12 (SAN FRANCISCO) ... PAUL S. DICK. JOHN H. WILLIAMS, Associate Economist W. RANDOLPH BURGESS, Manager of System Open Market Account WALTER LICHTENSTEIN, Secretary 626 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SENIOR OFFICERS OF FEDERAL RESERVE BANKS Fed B e a ra n l k R of e — serve Cha R ir e m s a er n v e an A d g F e e n d t eral President First Vice President Vice Presidents Boston F. H Curtiss R A Young W W Paddock W Willett2 New York Owen D. Young* G. L. Harrison Allan Sproul _ W. R. Burgess. W. S. Logan. J. H. Williams. R. M. Gidney. L. W. Knoke. C. H. Coe. Philadelphia R, L. Austin J. S. Sinclair F. J. Drinnen C. A. Mcllhenny.3 W. J. Davis. E. C. Hill. Cleveland... E. 8. Burke, Jr M. J. Fleming F. J. Zurlinden H. F. Strater. W. H. Fletcher. W. F. Taylor.2 Richmond. Robert Lassiter Hugh Leach __ J. S. Walden, Jr R. H. Broaddus. J. G. Fry. G. H. Keesee.2 Atlanta W. H. Kettig Oscar Newton R S Parker H F Conniff L M. Clark. W. S.McLarin.Jr.a Chicago _ R. E. Wood1 G. J. Schaller... _ H. P. Preston _ W. H. Snyder.a 0. S. Young. J. H. Dillard. St. Louis W. T. Nardin .. W. McC. Martin 0. M. Attebery. J. S. Wood. J. G. McConkey. Minneapolis W. B. Geery J. N. Peyton.. 0. S. Powell Harry Yaeger. E. W. Swanson. Kansas City J. J. Thomas.. __ G. H. Hamilton.. C. A. Worthington.... A. M. McAdams. J. W. Helm.3 Dallas C C. Walsh B A. McKinney R R Gilbert R B Coleman ' W. J. Evans. San Francisco A. 0. Stewart W. A. Day Ira Clerk S. G. Sargent. W. M. Hale. C. E. Earhart.» 1 Deputy chairman. * Cashier. s 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 G. H. Wagner 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 P. L. T, Beavers. 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. 627 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE DISTRICTS 7—1. OKLA. Oklahoma City ••IMM BOUNDARIES OF FEDERAL RESERVE DISTRICTS M M. BOUNDARIES OF FEDERAL RESERVE BRANCH TERRITORIES ® FEDERAL RESERVE BANK CITIES • FEDERAL RESERVE BRANCH CITIES O FEDERAL RESERVE BANK AGENCY LOUISVILLE. LITTLE ROCK, AND MEMPHIS BRANCHES SERVE CERTAIN DESIGNATED CITIES RATHER THAN ZONES DETERMINED BY STATE OR COUNTY LINES SPOKANE BRANCH SERVES CITY OF SPOKANE ONLY Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis