Federal Reserve Bulletin, 1939-09

FEDERAL RESERVE BULLETIN SEPTEMBER 1939 n • Growth and Distribution of Banking Funds Interest Rates on Customers' Loans Estimated Expenditures for Durable Goods BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM CONSTITUTION AVENUE AT 20TH STREET WASHINGTON Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

TABLE OF CONTENTS Page Review of the month—Recent growth and distribution of banking funds 709-714 National summary of business conditions 715-716 Summary of financial and business statistics 718 Law Department: Amendment to Regulation L 719 Revision of Regulation J 719 Rulings of the Board: Whether Regulation T permits domestic broker to borrow from foreign broker 721 Capital contribution loans between members of a national securities exchange 722 Social Security Act made applicable to member banks 723 Proclamation and amendment to regulations relating to silver 723 Rates charged by banks on customers' loans 725-726 All member banks—Condition on June 30, 1939, by classes of banks 727 All member banks—Classification of loans, investments, real estate, and capital on June 30, 1939, by classes of banks 728 Number of banks and branches 1933-1939; analysis of changes in number of banks and branches; January 1-June 30, 1939 729-730 Estimated expenditures for new durable goods 1919-1938 731-736 New German Reichsbank Law 737-742 Cuban Monetary Legislation 742-745 Annual report of the Bank for International Settlements 746-772 Annual report of the German Reichsbank 773-778 Financial, industrial, and commercial statistics, United States: Member bank reserves, Reserve bank credit, and related items 780 Federal Reserve bank statistics 781-785 Reserve position of member banks; deposits in larger and smaller centers 786 Money in circulation 787 Gold stock and gold movements; bank suspensions; bank debits 788 All banks in the United States 789 All member banks 790-791 Condition of reporting member banks in leading cities 792-795 Acceptances, commercial paper, and brokers' balances 796 Federal Reserve bank discount rates 797 Money rates and bond yields 798 Security markets 799 Treasury finance 800-801 Governmental corporations and credit agencies; Postal Savings System 802-803 Production, employment, and trade 804-812 Wholesale prices 813 Crop report 814 Statistics for Federal Reserve chart book 815-816 International financial statistics: Gold reserves of central banks and governments 818 Gold production 819 Gold movements 819-820 International capital transactions of the United States 821-823 Central banks 824-827 Bank for International Settlements 828 Money rates 828 Discount rates of central banks 829 Commercial banks 829-830 Foreign exchange rates 831 Price movements: Wholesale prices 832 Retail food prices and cost of living 833 Security prices 833 Federal Reserve directory: Board of Governors and staff; Open Market Committee and staff; Federal Advisory Council 836 Senior officers of Federal Reserve banks; managing directors of branches 837 II Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN VOL. 25 SEPTEMBER, 1939 No. 9 REVIEW OF THE MONTH previous time, they have not shared in the recent increase to the same extent that they Since early in 1938 bank deposits and redid in the growth from 1934 to 1936. Partly serves have increased steadily, and they are because the gold inflow during the past year now at record high levels. has reflected to a larger extent than formerly Growth and This increase is a resumption a growth in balances held by New York City distribution of ~ ,, , i , ,. 1 banking funds of a growth that continued banks for the account of foreigners and partly from early in 1934 to the end because of smaller purchases of Government of 1936 but was interrupted in 1937. The securities by New York City banks during the recent growth has been the result of a con- past year than in the 1934-1936 period, redistinued inflow of gold to this country, a fac- tribution of the new reserve funds among tor responsible for most of the increase in banks throughout the country has proceeded reserves and a large part of the growth in more slowly. In both periods there was a deposits during the earlier period. In 1937 growth of interbank deposits in New York, when the Treasury followed a policy of hold- which shifted reserves from the accounts of ing newly purchased gold in an inactive ac- interior banks to those of New York City count, the gold inflow had little effect on the banks. supply of banking funds, but in April 1938 Since early in 1938 member bank reserve the Treasury made use of the inactive gold balances have risen to successive new high fund to build up its balance with the Re- levels and excess reserves, serve banks, and as the proceeds were ex- Factors in which had been substanpended by the Treasury they increased bank deposits and reserves. During the past 1937 by increases in reserve twelve months the gold inflow from abroad requirements, reached a new high level by has been larger than in any previous period the end of 1938. From early in December of the same length. 1938 to the latter part of March 1939, al- The gold inflow has increased both deposits though temporary factors caused sharp flucand reserves; deposits, in addition, were in- tuations in reserves, excess reserves concreased from the beginning of 1934 to the tinued in the neighborhood of $3,400,000,000. end of 1936 as a result of considerable expan- Since March, they have risen almost steadily sion in bank loans and investments. In 1937 and on August 23 exceeded $4,700,000,000. and the first half of 1938 loans and invest- The rise in reserve balances during this period ments declined somewhat, causing a decrease amounted to $1,800,000,000, but was acin bank deposits during most of that period. companied by an increase of $500,000,000 in In the past year the growth in loans and inrequired reserves, due to a growth in deposits. vestments has been resumed but at a less Changes in member bank reserves and the rapid rate than in the 1934-1936 period. principal factors accounting for them are Most of the growth in reserves and about shown in the chart on page 717 of this half of that in deposits during the past year BULLETIN. has been at New York City banks. While The increase in monetary gold stock, the banks in other cities and country banks now principal factor in the growth in reserves hold larger deposits and reserves than at any 709 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

710 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 this year, has amounted to nearly $2,000,- of maturing bills, the supply of which is not 000,000 since the end of December. Approxi- always equal to the market demand. This mately half of the movement occurred in the action was in response to technical conditions months of March and April—the period of in the bill market and did not represent a world political tension accompanying Ger- change in general credit policy. man occupation of Czecho-Slovakia. In Jan- In the first half of 1938 the amount of uary and February and again in the period Treasury bills outstanding had declined to from May until early August the increase in $1,300,000,000, as compared with about $2,the gold stock averaged about $40,000,000 a 300,000,000 outstanding in 1936 and 1937. week. Imports of gold in this period were With this reduction in the supply of bills in excess of the increase in gold stock, the average rate on new issues of 90-day owing to an offsetting increase in gold ear- Treasury bills declined, and late in 1938 and marked for foreign central bank account at during the early part of 1939 these issues sold the Reserve banks. In the latter part of either on or near a no-yield basis. Treasury August there was an accelerated expansion bills held by the Federal Reserve banks were in the gold stock, reflecting both imports and reduced from $477,000,000 on June 21 to releases of gold from earmark. $336,000,000 on August 16. This decline There have also been changes of some im- represented replacements of $154,000,000 portance in other factors affecting bank re- against maturities of $296,000,000. Followserves. Treasury cash balances and deposits ing this action the supply of bills in the with the Federal Reserve banks, which had market available for investment by banks, been reduced somewhat following abandon- corporations, and other investors became ment of the inactive gold account in April correspondingly larger, and the average rate 1938, and then built up again by new borrow- on new issues of bills increased somewhat ing in September, December, and February, to 0.042 per cent on August 23, compared have been reduced by about $900,000,000 with 0.003 per cent on June 21. since March. Increases in reserves since The following table shows changes in the March as a result of the gold inflow and the distribution of holdings of Treasury bills reduction in Treasury balances have been during the period under discussion. It will offset somewhat, however, by a growth of be noted that banks outside the 101 leading about $350,000,000 in money in circulation cities and other investors purchased 60 per since early in March and by a recent reduccent of the supply of bills made available by tion of $140,000,000 in Federal Reserve bank the reduction in System Account holdings. holdings of Treasury bills. Reporting member banks took 40 per cent The reduction in holdings of Treasury bills with New York City banks by far the largest in the Federal Reserve System Open Market buyers among the classes of banks shown. Account occurred in the System open-market ending Auoperations eigM te weekg & DISTRIBUTION OF UNITED STATES TREASURY BILLS gust 16, in accordance [In millions of dollars] with the announcement by the Federal Open June 21, Aug. 16, Market Committee on June 30, 1939. This 1939 1939 Change announcement pointed out that for some time System Open Market Account 477 336 -141 past Treasury bills had been purchased for Reporting member banks in leadin; cities—total 440 495 +55 the System Account at or near a no-yield New York 173 220 +47 basis and that the Account at times had had Chicago 185 206 +21 Other 82 -13 difficulty in replacing its maturing bills. The Other holders 391 +85 Committee decided that it would serve no useful purpose to continue full replacement Total outstanding 1,307 -1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1939 FEDERAL RESERVE BULLETIN 711 That a large part of the growth in banking special obligations have been issued to Govfunds during recent months has occurred in ernment agencies and trust funds, repre- New York City is due to some senting investment of social security taxes Distribution of extent to the source of these collected throughout the country. banking funds funds. Because most foreign The accompanying chart shows the prinexchange transactions take place in New cipal factors accounting for movements of York the effect of a gold inflow on member funds in and out of the New York Federal bank deposits and reserves is likely in the first Reserve district. The chart is divided into instance to add to balances of New York City banks. To the extent to which purchases of FACTORS OF GAINS AND LOSSES OF RESERVE FUNDS AT BANKS IN NEW YORK F. R. DISTRICT dollars by foreigners are for the purpose of BILLIONS OF DOLLARS BILLIONS OF DOLLARS ' I i"N "•» A I *•* -* /•% I ) ^* making payments in the United States for merchandise exports or services, foreign funds sent here are likely to be distributed over the country. The purchase of securities by foreigners in this country may also result in some distribution of the funds to centers other than New York. In the past year, however, an unusually large proportion of gold movements to this country has been accounted for by the building up of balances for foreign account with American banks. Since the end of July 1938 the increase in foreign balances in American banks, other than balances of foreign central banks with the Reserve banks, has exceeded $1,000,000,000, a larger amount than in any other twelve-month period for which comparable figures are avail- 1937- 1939 able. Since these balances are largely held on deposit with New York City Banks, they Gold Imporis are not as widely distributed through the country as are those funds with which foreigners purchase commodities, services, or Balances in N.Y. City of Out-of- town Bonks securities. S,-*^ BusinessTransactions i ~\^^s~>r* In the 1934-1936 period, a part of the additional reserves obtained by New York City Treasury Transactions banks as a result of the gold inflow was redistributed among interior banks as a result 1937 1938 1939 of purchases of Government securities by the Weekly figures of gains and losses cumulative from January 1, 1934 to December 30, 1936 on upper chart, and from December New York banks and expenditure by the 30, 1936 to August 16, 1939 on lower chart. Curves above zero line represent funds gained, below zero line funds lost. Treasury of the funds thus obtained. The public debt has increased in the past two two sections, showing in one section cumulayears just as it did in the earlier period, tive movements for the period 1934-1936 but banks have purchased a relatively smaller and in the other section similar movements part of the obligations sold by the Treasury, for the period 1937-1939. In both of these and individual and institutional investors periods the gold inflow brought close to throughout the country have purchased rela- $4,000,000,000 of reserve funds into the New tively more. Also substantial amounts of York Federal Reserve district. During the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

712 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 1934-1936 period, funds also flowed to New There have been moderate withdrawals for York to build up the balances of out-of-town business account, largely counter-balanced banks, and as the net result of business and by a renewed increase in balances of out-offinancial transactions between New York andtown banks with New York City correspondthe rest of the country. In part the latter ents. As a consequence funds brought into inflow reflected funds sent to New York for New York by the gold inflow have largely the purchase of government obligations, and remained in New York City banks. Since last subsequently withdrawn by the Treasury for March, when New York City banks have been expenditure elsewhere. Total Treasury with- increasing their holdings of Government obdrawals from the New York district (or the ligations and the Treasury has been reducing excess of funds raised there through the its balances, reserves of banks outside New sale of government obligations and through York have increased somewhat more than taxes over disbursements and redemptions) they did in 1938, but the movement has not amounted to about $4,000,000,000 and sub-been as pronounced as in earlier years. stantially offset the inflow of funds on other Changes in deposits, reserves, and total account. In 1937 both the Treasury and cor- loans and investments for the different respondent banks withdrew funds from New classes of member banks are York. Since the middle of 1938, however, Recent changes shown in the following set when gold imports have again been excep- in condition of three charts. These charts, of banks tionally large, Treasury withdrawals from which are based upon fig- New York have been relatively small, ures from the member bank call report, largely for reasons previously explained. depict the extent of the growth in deposits, CONDITION OF MEMBER BANKS BY CLASSES OF BANKS CALL REPORT DATES, 1934-1939 NEW YORK CITY BANKS OTHER RESERVE CITY BANKS* COUNTRY BANKS 11 14 L. L 10 13 J / T V 1 10 AN T D O T I A N L V E L S O TM AN l:N S TS AND DT IN A V L E S I.O TM AN EN S Ts / / AN T D O T I A NN l. / ES L T O M A E ^ N s TS 9 1 12 y 8 I 1 J / v\ / 7 y / r MA A N D D JL D IS E T P E O D SITS 6 \ / / 1 AOJUSTED / t / I)EMANC DEPOJITS J AD USTED 5 / / / 1 RESERVE 4 BALINCES BALINCES DUE Q T0 BAN<S y 3 / 3 \ . r —/ •••- s s ^^ ^ /R B E A S L E A R NC V E E> EALANCES DUE 2 V 2 v 1 H FROM BANKS^/ BALANCES DUE \J/\ TO BAMKS ^- I BALANCES DUE FROM BANKS RESEWE B/\LANCIs 0 0 1936 1938 1934 1936 1938 1934 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1939 FEDERAL RESERVE BULLETIN 713 reserves and total loans and investments at try banks and declined substantially at New New York City banks, at banks in other York City banks. The net effect for member reserve cities including Chicago, and at coun- banks in the aggregate, as shown in the foltry banks. They show that, although all lowing table, was a further growth in investclasses of banks have had a growth in de-ments and little change in loans. posits in the past year, the increase at banks The changes in investment holdings reoutside New York City has not been as large flected in part shifts in outstanding amounts relatively as that in New York City or as of different types of Government obligations. that which occurred in the same classes of Most of the increase in investments was in banks in the 1934-1936 period. Loans and obligations fully guaranteed by the United investments at member banks have increased States Government, additional offerings of in the past year. At banks outside New which were made by Federal agencies in the York on June 30, 1939, they were close to period. Holdings of Treasury notes declined the level reached at the end of 1936, but atand those of Treasury bonds increased, rep- New York City banks only a small part of resenting in part conversion of notes into the 1937 decline has been regained. bonds at the March financing. Commercial, In the first six months of 1939, at Newagricultural, and real estate loans increased, York City banks adjusted demand deposits while security loans declined. "Other" loans, increased by $850,000,000 and balances of which include personal loans, increased someother domestic banks by $300,000,000. Among what. assets the growth in reserves amounted to $870,000,000 and in total loans and invest- LOANS AND INVESTMENTS OF ALL MEMBER BANKS JUNE 30, 1939 ments to $350,000,000. At banks in other [In millions of dollars] reserve cities, including Chicago, the gain in adjusted demand deposits was less than Change since Dec. 31, 1938 half that of New York City banks, but, as at New New York City banks, corresponded closely Ju 1 n 9 e 3 9 30, m A e l m l - c Y en o t r r k al r O es t e h r e v r e C t o ry unto the increase in reserves. An increase in ba b n er ks re c s i e t r y ve ba c n it k y s 1 banks amounts due to domestic banks by these city banks banks was approximately matched by the in- Total loans 13,141 -67 -274 +47 +161 crease in their own balances with other Commercial loans 4,783 +46 +18 -20 +47 banks. Their total loans and investments Agricultural loans 788 +76 +1 +28 +48 Open market paper, _ _ _ 420 -22 -11 -13 +2 increased by $185,000,000. At country mem- Loans to brokers and dealers _ 731 -242 -231 -8 -3 Loans to others on securities _ 736 -39 -5 -19 -14 ber banks adjusted demand deposits showed Real estate loans „ _ _ 2,828 +112 +9 +54 +49 Loans to banks 58 -67 -58 -8 only a small growth in the first half of Other loans _ _ _ 2,796 +68 +4 +33 +31 1939 but time deposits increased by about Total investments, _ 19, 462 +599 +627 +137 -165 $100,000,000. These banks increased their United States Government obligations—total 13, 777 +555 +626 +34 -106 balances due from domestic banks some- Direct obligations: what and their balances with reserve banks Bills 441 +155 +9 +147 Notes 2,720 -669 -234 -267 -169 slightly. There was practically no change in Bonds - _ _ . . 7,785 +578 +622 -21 -23 Fully guaranteed obligatheir total loans and investments. tions^ _ _ . % 831 +491 +229 +175 +86 Call report figures as of June 30 show Obligations of States and political subdivisions 2,554 +106 -37 +100 +43 that while city banks increased their holdings Other securities 3,131 -61 +38 +3 -102 of investments during the Total loans and investments 32, 603 +533 +353 +184 -4 Changes in first half of 1939, country 1 Includes Chicago central reserve city banks. anfinvestmems banks' investments were At New York City banks, loans declined further reduced. Loans, on during the first six months o1' 1939, because the other hand, increased somewhat at coun- of a sharp reduction in loansto brokers and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

714 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 dealers in securities. Loans to banks also during the period. Holdings of other securdeclined slightly while commercial loans ities by these banks showed little net change, showed a moderate increase. Since the end corporate securities increasing and obligaof June weekly reporting banks in New York tions of States and political subdivisions dehave shown a further increase in commercial creasing. Since June 30, however, according loans. At reserve city banks, including cen- to weekly figures, United States Government tral reserve city banks in Chicago, there was obligations held by New York banks have a small increase in total loans during the first shown little change, while obligations of six months of the year, reflecting largely a States and political subdivisions have ingrowth in agricultural and real estate loans. creased somewhat, reflecting purchases by At country banks loans have been increas- these banks of a large share of a new issue of ing almost steadily since the beginning of New York State short-term notes. 1936 and are now at the highest level since At other reserve city banks Government the end of 1932. The increase in the first security portfolios showed little change durhalf of 1939 totaled $160,000,000. There were ing the first half of the year, and at country increases of nearly $50,000,000 each in com- banks there was a decrease of over $100,000,mercial, agricultural, and real estate loans, 000. There were reductions in Treasury a small decline in security loans, and a small notes and increases in Government guaranincrease in all other loans. Agricultural loans teed obligations. Holdings of Treasury bills at reserve city banks and country banks have increased at Chicago banks. Obligations of declined somewhat since June as maturing States and political subdivisions increased corn and cotton loans, which had been made further both at reserve city and country banks by banks under terms prescribed by the Com- during the period. Such holdings for these modity Credit Corporation, were taken over banks have increased by over $350,000,000 by the Corporation in accordance with the since the end of 1937. At country banks regular agreement included in the loans. holdings of corporate securities decreased Investment holdings of city banks have further to the lowest level in the period of increased further this year. The increase over 10 years for which figures are available. has been mostly at New York City banks. These banks increased their Treasury bond portfolio by nearly $625,000,000 during the Appointment of Class C Director at a Federal first six months of the year, while reducing Reserve Bank their Treasury notes by $235,000,000. These On August 21,1939, Charles P. McCormick, changes represented in part conversion of President, McCormick & Co., Inc., Importers, notes into bonds at the March financing and Exporters and Packers, Baltimore, Maryland, in part purchases of bonds from other in- was appointed a Class C director of the Fedvestors, including interior banks. New York eral Reserve Bank of Richmond for the unex- City banks also purchased $230,000,000 addi- pired portion of the term ending December tional Government guaranteed obligations 31, 1941. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

715 SEPTEMBER 1939 FEDEEAL RESERVE BULLETIN NATIONAL SUMMARY OF BUSINESS CONDITIONS [Compiled August 16 and released for publication August 18] In July industrial activity, seasonally ad- Plate glass production declined sharply in justed, rose sharply and was close to the level July, following a substantial increase in June. reached last December. Prices of some in- Changes in output of nondurable manudustrial materials increased in recent weeks factures in July were largely of a seasonal while those for agricultural products con- nature. At cotton textile mills and meattinued to decline. packing establishments activity showed Production.—The Board's index of indus- somewhat less than the usual declines and at trial production, according to preliminary sugar refineries output increased from the returns, advanced to 102 per cent of the 1923- low level reached in June. Flour production 1925 average in July as compared with 98 incontinued in substantial volume. June and 92 in April and May. The advance Mineral production expanded further in in July reflected chiefly a considerable further July as output of bituminous coal continued increase in output of iron and steel, which to increase and petroleum production, which usually declines at this season. Steel ingot had been reduced in June, rose sharply. On production rose from an average rate of 52August 14 the Texas Railroad Commission per cent of capacity in June to 57 per cent in ordered a shutdown of most Texas oil wells July and in the first three weeks of August for 15 days, beginning August 15, and subwas maintained around 60 per cent which for sequently similar shutdowns were ordered in the month would represent about the usual several other important oil producing States. seasonal increase. Lumber production showed Value of construction contracts, as relittle change in July, although a decline is ported by the F. W. Dodge Corporation, inusual. creased somewhat in July, owing principally to a small rise in contracts for public proj- INDUSTRIAL PRODUCTION ects. Awards for residential work, both 1PE4R0 CENT C 1 E 4 NT 0 public and private, were practically un- 130 130 changed from the June total. / 120 120 Employment,—Factory employment, which / 110 \ 110 usually declines in July, was maintained this 100 / \ fI"V 100 year at about the June level and payrolls showed a less than seasonal decrease, accord- 90 r\ i , / 90 ing to reports from a number of leading in- 80 80 dustrial States. 70 70 FREIGHT-CAR LOADINGS 60 PER CENT PER C 1935 1936 1937 1938 1939 110 110 Index of physical volume of production adjusted for seasonal 100 100 variation, 1923-1925 average = 100. 90 90 In the automobile industry output showed 80 80 a sharp seasonal curtailment during July and the first half of August, reflecting prepara- 70 V V•/ \ v/ V 70 tions for the shift to new model production 60 60 which will be made about a month earlier this 50 50 year than in other recent years. Retail sales 40 40 of new cars continued in excess of produc- 1934 1935 1936 1937 1938 1939 tion and dealers' stocks were greatly reduced. Index of total loadings of revenue freight, adjusted for seasonal. variation, 1923-1925 average = 100. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

716 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 Distribution.—Sales at department and Bank credit.—Total loans and investments variety stores in July showed about the cus-of member banks in 101 leading cities intomary seasonal decline. In the first half creased substantially during the four weeks of August department store sales increased. ending August 9, reflecting chiefly increases Freight-car loadings increased further in holdings of United States Government obfrom June to July. Loadings of coal con- ligations and the purchase by New York tinued to expand and shipments of miscel- banks of a large share of a new issue of New laneous freight, which usually decline at this York State short-term notes. Commercial season, showed little change. loans continued to increase at New York Commodity prices.—Prices of most farm banks but declined at banks in 100 other leadproducts and foods declined from the be- ing cities as corn and cotton loans that were ginning of July to the middle of August. approaching maturity were taken over by the Commodity Credit Corporation in accordance WHOLESALE PRICES with a standing agreement. Deposits at reporting banks remained at high levels. MEMBER BANK RESERVES BILLIONS OF DOLLARS 12 1935 1936 1939 Indexes compiled by United States Bureau of Labor Statistics, 1926 = 100. By weeks, January 6, 1934, to August 12, 1939. 1934 1935 1936 1937 1938 1939 Some industrial materials, principally steel Wednesday figures of total member bank reserve balances at Federal Reserve banks, with estimates of required and excess scrap, nonferrous metals, and textile fabrics, reserves, January 3, 1934, to August 16, 1939. showed advances in this period, while crude Excess reserves of member banks increased petroleum prices were reduced. further to new high levels in the latter part Agriculture.—On August 1 prospects for of July and the first half of August, owing major crops were about the same as a month principally to gold imports and net Treasury earlier, according to the Department of Agri- disbursements, partly offset by a reduction in culture. The first official estimate on cotton Federal Reserve bank holdings of Treasury indicated a crop of 11,400,000 bales, some- bills. what smaller than last year's crop and 2,400,- Money rates.—The average rate on new 000 bales less than the 1928-1937 average. issues of 90-day Treasury bills has increased World carryover of American cotton, how- slightly in recent weeks and on August 16 ever, was estimated to have been somewhat was 0.032 per cent. Prices of Treasury bonds larger on August 1 than the record volume showed little change from the middle of July of a year ago. to the middle of August. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1939 FEDERAL RESERVE BULLETIN 717 MEMBER BANK RESERVES AND RELATED ITEMS BILLIONS OF DOLLARS WEDNESDAY FIGURES BILUflflS OF DOLLARS 16 16 15 15 14 14 13 13 GOLD STOCK 12 12 11 11 10 10 9 9 8 8 MONEY IN CIRCULATION 7 XL 7 6 6 5 5 4 -TREASURY CASH_ 4 3 3 2 2 1 1 1934 1935 1936 1937 1938 1934 1935 1936 1937 1938 1939 Latest figures for August 16. See table on p. 780. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

718 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 SUMMARY OF FINANCIAL AND BUSINESS STATISTICS 1939 1938 Annual averages July June I May 1938 1937 1936 1935 1933 1929 MEMBER BANK RESERVES, RESERVE BANK CREDIT, Averages of daily figures; in millions of dollars AND RELATED ITEMS Reserve bank credit outstanding—total 2,569 2,591 2,582 2,599 2,592 2,594 2,600 2,554 2,481 2,475 2,429 1,459 Bills discounted 5 4 4 8 9 8 9 14 6 7 283 952 Bills bought 1 1 1 1 1 1 1 3 4 5 83 241 U. S. Government securities 2,527 2,563 2,564 2,564 2, 560 2,564 2,565 2,540 2,430 2,431 2, 052 208 Gold stock 16,182 16, 028 15,878 12 98512, 946 12, 891 13, 250 12,162 10, 578 9,059 4,059 3,996 Treasury currency outstanding 2,887 2,870 2,856 2*716 2,707 2,697 2,711 2,567 2,503 2,478 2,271 2,015 Money in circulation 7, 051 6,966 6,919 6,464 6,433 6,415 6,510 6,475 6,101 5,585 5,576 4,476 Treasury cash holdings 2,534 2,568 2,663 2,318 2,283 2,227 2,804 3,225 2,474 2,791 288 207 Treasury deposits with F. R. banks 780 929 926 717 967 1,315 653 158 446 128 55 22 Nonmember deposits and other F. R. accounts 952 940 812 634 637 658 595 551 507 497 406 Member bank reserve balances: Total 10, 321 10, 085 9,997 8,167 7,878 7,587 7,935 6,830 5,989 5,001 2,343 2,358 Excess 4,402 4,246 4,212 3,026 2,762 2,525 2,522 1,220 2,512 2,469 528 43 REPORTING MEMBER BANKS IN 101 LEADING CITIES Averages of Wednesday figures; in millions of dollars Total loans and investments 22, 046 21, 887 21, 693 20, 530 20, 696 20, 732 21,023 22,198 22, 064 19, 997 17,505 22, 599 Loans—total 8,146 8,094 8,091 8,213 8,384 8,430 8,506 9,546 8,462 8,028 9,156 16, 887 T C o o m br m o e k r e c r i s a l a , n i d n d d u e s a t l r e i r a s l i a n n s d e c a u g r r i i t c ie u s ltural 3, 6 8 4 8 8 8 3,8 6 3 71 0 3,8 6 3 7 9 8 3,8 6 7 2 8 9 3,9 6 5 8 3 6 4,0 6 8 0 5 2 4,0 7 5 01 9 1, 0 2 ) 26 1, 0 18 ) 1 0 9 ) 90 0 1 ) 11 • 0 2 ) , 208 Other loans for purchasing or carrying securities.. 532 541 539 577 582 589 588 0) 0) 0) 0) 0) Inve A st l m l o en th t e s— r lo to a t n a s l 1 3 3 , , 0 9 7 0 8 013 3 , , 0 7 5 9 2 3 13 3 , , 0 6 3 0 5 2 12 3 , , 1 3 2 1 9 7 1 3 2 , , 1 3 6 1 3 2 12 3 , , 1 3 5 0 4 2 12 3 , , 1 5 5 1 8 7 12, 0 ) 652 13, 0) 602 11, 0 9 ) 69 8, 0 3 ) 49 0) U. S. Government direct obligations 8,499 8,383 8,296 7,703 7,864 7,980 7,982 8,394 9,080 7,989 5,228 5,712 Obligations fully guaranteed by U. S. Govt 2,158 2,119 2,033 1,567 1,453 1,354 1,451 1,164 1,250 928 2,865 Other securities 3,243 3,291 3,273 3,047 2,995 2,968 3,084 3,094 3,272 3,052 3,121 2,847 Reserve with Federal Reserve banks 8,645 8,460 8,361 6,675 6,407 6,070 6,400 5,307 4,799 4,024 1,822 1,725 Cash in vault -- 448 447 423 403 398 384 382 337 383 326 240 248 Balances with domestic banks 2,765 2,727 2,644 2,435 2,406 2,296 2,289 1,884 2,358 2,112 1,322 1,142 Demand deposits—adjusted 17, 366 17,182 16,796 15, 021 14, 932 14, 579 15,033 15,097 14, 619 12, 729 0) 0) B T D i o e m r p r o e o s w d it i e s n p g o o s f s i d ts o m (e e x s c t l i u c d b in a g n k i s n t 3 erbank)2 5 6 , , 2 8 3 9 8 0 6 5 , ,2 7 4 2 0 8 6 5 , ,2 6 5 4 2 3 8 5 5 , , 2 9 1 3 6 1 6 5 5 , , 2 8 3 4 1 5 7 5 5 , , 2 70 1 6 4 1 5 5, , 7 2 7 0 3 0 2 5 5 , , 2 2 9 1 0 2 8 2 4 5 , ,8 9 1 9 0 9 5 4 4 , , 8 93 8 8 3 6 4 2 , , 9 8 1 2 4 1 2 6 5 6 2, , 6 7 7 7 8 8 4 7 8 MONEY RATES AND BOND YIELDS Averages of daily figures; per cent per annum Commercial paper .56 .56 .56 .75 .81 .95 .75 1.72 5.85 Stock exchange call loans 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 .91 .56 1.16 7.61 U. S. Treasury bills (91 days) .04 .03 .03 .07 .05 .05 .07 .17 .17 U. S. Treasury bonds, long-term <_•_ 2.16 2. 13 2.17 2.52 2.52 2.51 2.56 2.68 2.65 2.79 3.31 3.60 Corporate high grade bonds (Moody's Aaa). 2.89 2.92 2.97 3.22 3.26 3.22 3.19 3.26 3.24 3.60 4.49 4.73 CAPITAL ISSUES Amounts per month; in millions of dollars All issues—total 586 605 1,312 470 513 220 372 328 518 392 89 959 New 318 293 117 391 349 159 197 178 164 121 60 841 Refunding 268 312 1,195 79 164 61 175 150 354 270 29 118 Domestic corporate issues—total.. 226 282 172 186 301 63 179 203 382 189 32 781 New 49 30 21 130 202 38 73 102 99 34 13 667 Refunding 177 252 151 56 99 26 107 101 282 155 18 115 PRICES Index numbers Common stocks (1926=100) 86 83 88 73 74 83 112 111 78 63 190 Wholesale commodity prices (1926=100): All commodities 76 76 79 78 78 79 86 81 80 66 95 Farm products 62 64 69 69 68 69 86 81 79 51 105 Foods 68 68 74 73 72 74 86 82 84 61 100 Other commodities 80 81 81 81 82 82 85 80 78 71 92 Retail food prices (1923-25=100) 76 77 80 80 79 79 85 82 81 66 105 BUSINESS INDEXES Index numbers, adjusted for seasonal variation, 1923-25=100 Industrial production 98 92 83 77 76 86 110 105 90 76 119 Manufactures PIOI 97 91 82 74 73 84 109 105 90 75 119 Minerals ?108 104 98 93 92 92 98 115 105 91 82 115 Construction contracts awarded—total- ?67 63 63 59 54 51 64 59 55 37 25 117 Residential P61 58 55 49 42 37 45 41 37 21 11 87 Allother 67 68 68 64 62 80 74 70 50 37 142 Factory employment 91 90 83 82 84 87 106 98 91 73 106 Factory payrolls (unadjusted) 86 84 71 71 73 78 102 86 74 50 110 Freight-car loadings . 67 62 61 58 58 62 78 75 64 58 107 Department store sales 86 85 83 82 78 85 92 88 79 67 111 MERCHANDISE EXPORTS AND IMPORTS Amounts per month; in millions of dollars Exports, including re-exports _ P230 236 249 228 233 257 258 279 205 190 140 437 General imports 179 203 141 146 148 163 257 202 171 121 367 p Preliminary. r Revised. e Partly estimated. 1 Figures not available. 2 Includes time deposits of banks, domestic and foreign, 1929-1933. 3 Does not include time deposits 1929-1933. * Averages of yields of all outstanding bonds due or callable after 12 years. See BULLETIN for December 1938, pp. 1045-1046. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1939 FEDERAL RESERVE BULLETIN 719 LAW DEPARTMENT Amendment to Regulation L on August 5, 1939. The President's veto mes- The Board's Regulation L, relating to inter- sage is set forth below: locking bank directorates under the Clayton "To the Senate: Act, was recently amended in the manner "I return herewith, without my approval, Senindicated by the following press statement ate bill 2150, 'An act to amend section 8 of the act entitled "An act to supplement laws against released by the Board under date of August unlawful restraints and monopolies, and for 1, 1939: other purposes," particularly with reference to interlocking bank directorates, known as the "The Board of Governors of the Federal Re- Clayton Act.' If it was in the public interest in serve System has amended subsections 3(a) and 1935 for the Congress to decide to terminate 3(e) of its Regulation L, relating to interlocking these relationships, it is in the public interest bank directorates under the Clayton Act, effec- to terminate them now. Affected banks and tive immediately, so as to extend until February affected directorates have had over 4 years to 1, 1940, the time during which certain persons make adjustments. That would seem to be a who have been serving member banks may con- liberal time. tinue to serve a member bank and not more than "If the Congress wishes to reverse itself and one other bank." allow interlocking directorships in the future, it can, of course, do so. But I do not think that The pertinent provisions of Regulation L the Congress should nullify its policy, declared in 1935, by extending interlocking directorships as thus amended read as follows: for another 4 years on top of the 4 years' extension which has already been given. "SECTION 3. RELATIONSHIPS PERMITTED BY BOARD "FRANKLIN D. ROOSEVELT. "In addition to any relationships covered by "THE WHITE HOUSE, August 5, 1939." the foregoing exceptions, not more than one of the following relationships is hereby permitted by the Board of Governors of the Federal Reserve System in the case of any one individual: Revision of Regulation J "(a) Any private banker or any director, officer, or employee of a member bank of the There is set forth below the text of the Federal Reserve System may be at the same time a director, officer, or employee of not more Board's Regulation J, relating to check clearthan one cooperative bank, credit union or other ing and collection, as revised effective Sepsimilar institution; and any private banker or any director, officer, or employee of a member tember 1, 1939, together with the text of a bank of the Federal Reserve System who is law- press statement with regard thereto released fully serving as a director, officer, or employee of a Morris Plan bank or similar institution on by the Board of Governors on August 21, January 31, 1939 may continue such service until 1939: February 1, 1940." The Board of Governors of the Federal Reserve System announced today that the Federal Reserve "(e) Any director, officer, or employee of any banks will put into effect on September 1, 1939 cermember bank of the Federal Reserve System tain changes in their check collection procedure dewho, on August 23, 1935, was lawfully serving signed to give member banks more prompt credit for at the same time as a private banker or as a checks deposited with the Federal Reserve banks for director, officer, or employee of any other bank, collection and to reduce the amount of work required banking association, savings bank, or trust com- in preparing the checks for deposit with the Federal pany and whose services in such capacities have Reserve banks. been continuous since such date, may continue, Heretofore member banks have been given credit until February 1, 1940, to serve such member for checks deposited with the Federal Reserve banks bank and not more than one other such bank, in accordance with time schedules which were based banking association, savings bank, trust com- on the actual time required to collect the checks. pany or private banker." After September 1 the Federal Reserve banks will credit member banks within three days or less for A bill, S. 2150, to amend the second para- all checks deposited with them for collection. Immegraph of section 8 of the Clayton Act so as todiate credit or credit within one or two days will continue to be given for most checks. Bxtend from February 1, 1939, to February The Board's Regulation J relating to the clearance 1, 1944, the period during which certain rela- and collection of checks and the check collection circulars and time schedules of the Federal Reserve tionships lawfully existing on the date of thebanks have been revised. Copies are being sent by Banking Act of 1935 might continue was the Federal Reserve banks to all member banks and to all other banks which maintain deposit accounts vetoed by the President of the United States with the Federal Reserve banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

720 FEDEEAL RESERVE BULLETIN SEPTEMBER 1939 REGULATION J tricts, and checks drawn on all other nonmember banks in other Federal Reserve districts which are As amended, effective September 1, 1939 collectible at par in funds acceptable to the collecting Federal Reserve bank. (Superseding Regulation J, Series of 1930) (3) No Federal Reserve bank shall receive on de- Check Clearing and Collection posit or for collection any check drawn on any nonmember bank which cannot be collected at par in SECTION 1. STATUTORY PROVISIONS funds acceptable to the Federal Reserve bank. Section 16 of the Federal Reserve Act authorizes the Board of Governors of the Federal Reserve Sys- SECTION 4. TIME SCHEDULE AND AVAILABILITY OF . tem to require each Federal Reserve bank to exercise CREDITS the functions of a clearing house for its member (1) Each Federal Reserve bank will publish a banks, and section 13 of the Federal Reserve Act, time schedule showing the time at which any item as amended by the Act approved June 21, 1917, ausent to it will be counted as reserve and become availthorizes each Federal Reserve bank to receive from able for withdrawal or other use by the sending bank. any nonmember bank or trust company, solely for For all checks received, the sending bank will be the purposes of exchange or of collection, deposits of given immediate credit, or deferred credit, in accurrent funds in lawful money, national-bank notes, cordance with such time schedule, and as provided Federal Reserve notes, checks and drafts payable below. upon presentation, or maturing notes and bills, pro- (2) For all such checks as are received for immevided such nonmember bank or trust company maindiate credit in accordance with such time schedule, tains with its Federal Reserve bank a balance suffiimmediate credit, subject to final payment, will be cient to offset the items in transit held for its account given upon the books of the Federal Reserve bank by the Federal Reserve bank. at full face value in the reserve account or clearing account upon day of receipt, and the proceeds will SECTION 2. GENERAL REQUIREMENTS at once be counted as reserve and become available In pursuance of the authority vested in it under for withdrawal or other use by the sending bank; these provisions of law, the Board of Governors of provided, however, that the Federal Reserve bank the Federal Reserve System, desiring to afford both may in its discretion refuse at any time to permit to the public and to the various banks of the country the withdrawal or other use of credit given for any a direct, expeditious, and economical system of check item for which the Federal Reserve bank has not yet collection and settlement of balances, has arranged received payment in actually and finally collected to have each Federal Reserve bank exercise the func- funds. tions of a clearing house and collect checks for such (3) For all such checks as are received for deof its member banks as desire to avail themselves of ferred credit in accordance with such time schedule, its privileges and for such nonmember State banks deferred credit, subject to final payment, will be and trust companies as may maintain with the Fed- entered upon the books of the Federal Reserve bank eral Reserve bank balances sufficient to qualify them at full face value, but the proceeds will not be counted under the provisions of section 13 to send items to as reserve nor become available for withdrawal or Federal Reserve banks for purposes of exchange or other use by the sending bank until such time as may of collection. Such nonmember State banks and trust be specified in such time schedule,2 at which time companies will hereinafter be referred to as non- credit will be transferred from the deferred account member clearing banks. to the reserve account or clearing account subject to Each Federal Reserve bank shall exercise the func- final payment and will then be counted as reserve tions of a clearing house and collect checks under the and become available for withdrawal or other use by general terms and conditions hereinafter set forth, the sending bank; provided, however, that the Fedand each member bank and nonmember clearing bank eral Reserve bank may in its discretion refuse at an^ shall cooperate fully in the system of check clearance time to permit the withdrawal or other use of credit and collection for which provision is herein made. given for any item for which the Federal Reserve bank has not yet received payment in actually and SECTION 3. CHECKS RECEIVED FOR COLLECTION finally collected funds. (1) Each Federal Reserve bank shall receive at par from member and nonmember clearing banks in SECTION 5. TERMS OF COLLECTION its district, from other Federal Reserve banks, and The Board of Governors of the Federal Reserve from all member and nonmember clearing banks in System hereby authorizes the Federal Reserve banks other Federal Reserve districts which are authorized to handle such checks subject to the following terms to route direct for the credit of their respective Fed- and conditions; and each member and nonmember eral Reserve banks, checksx drawn on all member clearing bank which sends checks to any Federal and nonmember clearing banks of its district, and Reserve bank for deposit or collection shall by such checks drawn on all other nonmember banks of its action be deemed (a) to authorize the Federal Redistrict which are collectible at par in funds accept- serve banks to handle such checks subject to the able to it. following terms and conditions; (b) to warrant its (2) Each Federal Reserve bank may receive at own authority to give the Federal Reserve banks par from member and nonmember clearing banks in such authority; (c) to agree to indemnify any Fedits district, checks drawn on all member and non- eral Reserve bank for any loss or expense sustained member clearing banks in other Federal Reserve dis- (including but not limited to attorneys' fees and expenses of litigation) resulting from the failure of 1 A check is generally defined as a draft or order upon a bank such sending bank to have such authority, or resultor banking house, purporting to be drawn upon a deposit of funds, for the payment at all events of a certain sum of money to the order of a certain person therein named, or to him or his order, 2 For rules for computation of reserves and penalties for defior to bearer, and payable on demand. ciencies in reserves, see Regulation D, Sees. 2 and 3. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN 721 SEPTEMBER 1939 ing from such Federal Reserve bank's guaranty of Federal Reserve bank had sent the check to the other prior endorsements, or resulting from any action Federal Reserve bank with its endorsement and guartaken by the Federal Reserve bank within the scope anty of prior endorsements. of its authority for the purpose of collecting such (7) Bank drafts received by a Federal Reserve checks; and (d) to guarantee all prior endorsements bank in payment of or in remittance for checks hanon such checks whether or not a specific guaranty is dled under the terms of this regulation shall likewise incorporated in an endorsement of the1 sending bank. be handled for collection subject to all the terms and (1) A Federal Reserve bank will act only as agent conditions of this regulation. of the bank from which it receives such checks and (8) The amount of any check for which payment will assume no liability except for its own negligence in actually and finally collected funds is not received and its guaranty of prior endorsements. shall be charged back to the forwarding bank, re- (2) A Federal Reserve bank may present such gardless of whether or not the check itself can be checks for payment or send such checks for collec- returned. In such event, neither the owner or holder tion direct to the bank on which they are drawn or of any such check, nor the bank which sent such at which they are payable, or in its discretion may check to the Federal Reserve bank for collection shall forward them to another agent with authority to have any right of recourse upon, interest in, or right present them for payment or send them for collection of payment from, any reserve balance, clearing acdirect to the bank on which they are drawn or at count, deposit account, or other funds of the drawee which they are payable. bank or of any bank to which such checks have been (3) A Federal Reserve bank may, in its discretion sent for collection, in the possession of the Federal and at its option, either directly or through or from Reserve bank. No draft, authorization to charge, or an agent, accept in payment of or in remittance for other order, upon any reserve balance, clearing acsuch checks, cash, bank drafts, transfers of funds or count, deposit account, or other funds of a paying, remitting, or collecting bank in the possession of a bank credits, or other forms of payment or remit- Federal Reserve bank, issued for the purpose of tance, acceptable to the collecting Federal Reserve settling items handled under the terms of this regubank. The Federal Reserve bank shall not be liable lation will be paid, acted upon, or honored after refor the failure of the drawee bank or any agent to ceipt by such Federal Reserve bank of notice of pay or remit for such checks, nor for any loss resultsuspension or closing of such paying, remitting, or ing from the acceptance from the drawee bank or collecting bank. any collecting agent, in lieu of cash, of any other form of payment or remittance authorized herein, nor for the nonpayment of, or failure to realize upon, SECTION 6. OTHER RULES AND REGULATIONS any bank draft or other medium of payment or re- Each Federal Reserve bank may also promulgate mittance which may be accepted from the drawee rules not inconsistent with the terms of the law or bank or any collecting agent. of this regulation, governing the sorting, listing, (4) Checks received by a Federal Reserve bank packaging, and transmission of items, and other dewhich are payable in its own district will ordinarily tails of its check clearing and collection operations. be forwarded or presented direct to the banks on Such rules and regulations shall be set forth by the which they are drawn, and such banks will be re- Federal Reserve banks in their letters of instruction quired to remit or pay therefor at par in such one to their member and nonmember clearing banks and or more of the forms of payment or remittance au- shall be binding upon any member or nonmember thorized under paragraph (3) hereof as may be clearing bank which sends any check to such Federal acceptable to the Federal Reserve bank. Reserve bank for collection or to any other Federal (5) Checks received by a Federal Reserve bank Reserve bank for the account of such Federal Repayable in other districts will ordinarily be for- serve bank for collection. warded for collection to the Federal Reserve bank of the district in which such checks are payable; provided, however, that, where arrangements can be made, satisfactory to the collecting bank or agent Whether Regulation T Permits Domestic Broker to and to the Federal Reserve bank of the district in Borrow from Foreign Broker which such checks are payable, any such checks may be forwarded for collection direct to the bank on Regulation T provides in section 5 (c)1 that: which they are drawn or at which they are payable, or may be forwarded for collection to another agent "A creditor may borrow from another creditor with authority to present them for payment direct in the ordinary course of business as a broker to the bank on which they are drawn or at which or dealer on any registered security to the exthey are payable. All such checks shall be handled subject to all the terms and conditions of this regu- 1 The permission granted by the Board in section 5(c) of Regulation. lation T is based upon section 8 (a) of the Securities Exchange (6) With respect to any check sent direct by a Act of 1934 which provides in part that: member or nonmember clearing bank in one district "It shall be unlawful for any member of a national securities exchange, or any broker or dealer who transacts a business in to a Federal Reserve bank in another district, the securities through the medium of any such member, directly or relationships and the rights and liabilities existing indirectly— between the member or nonmember clearing bank, (a) To borrow in the ordinary course of business as a broker or dealer on any security (other than an exempted security) the Federal Reserve bank of its district and the registered on a national securities exchange except (1) from or Federal Reserve bank to which the check is sent will through a member bank of the Federal Reserve System, (2) from be the same, and the relevant provisions of this regu- any nonmember bank which shall have filed with the Board of Governors of the Federal Reserve System an agreement, which lation will apply, as though the member or non- is still in force and which is in the form prescribed by the Board, member clearing bank had sent such check to the . . . or (3) in accordance with such rules and regulations as the Federal Reserve bank of its district with its endorse- Board of Governors of the Federal Reserve System may prescribe to permit loans between such members and/or brokers and/or ment and guaranty of prior endorsements and such dealers, or to permit loans to meet emergency needs." 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722 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 tent and subject to the terms upon which the present purposes to determine whether, or to latter may extend credit to him in accordance what extent, the foreign broker would be rewith the provisions of this regulation, and subject to any other applicable provisions of law." quired to comply with Regulation T, since the The term "creditor" as used in section 5 (c) domestic broker is not granted permission to is defined in section 2(b) of the regulation as borrow unless the loan complies with the requirements of Regulation T to the same exfollows: tent as if the lender were a domestic "cred- "The term 'creditor' means any member of a national securities exchange or any broker or itor." dealer who transacts a business in securities through the medium of any such member." The Board recently has been asked whether Capital Contribution Loans Between Members of a National Securities Exchange section 5(c) authorizes a "creditor," as defined in section 2(b), to borrow in this coun- Section 4(f) (2) of Regulation T, as added try in the ordinary course of business as a to the regulation effective May 22, 1939, probroker or dealer on registered nonexempted vides as follows: securities from a foreign broker. The foreign "In a special miscellaneous account, a creditor may— broker maintains no place of business in the "(2) Make loans, and may maintain loans, to United States, but "transacts a business in or for any partner of a firm which is a member securities through the medium of a member of a national securities exchange to enable such partner to make a contribution of capital to such of a national securities exchange" and hence firm provided (A) the lender as well as the borappears to fall within the definition of the rower is a partner in such firm, or (B) the lender as well as the borrower is a member of term "creditor." such exchange, the loan has the approval of an It is the view of the Board that section appropriate committee of the exchange, and the committee, in addition to being satisfied that the 5(c) in its present form grants permission loan is not in contravention of any rule of the exfor the domestic broker thus to borrow from change, is satisfied that the loan is outside the ordinary course of the lender's business, and that, the foreign broker who "transacts a business if the borrower's firm does any dealing in securiin securities through the medium of a mem- ties for its own account, the loan is not for the purpose of enabling the firm to increase the ber," but that it grants the permission only amount of such dealing;" on condition that the loan so obtained by the domestic broker meets the requirements of The Board recently considered a case in section 5(c) that it be "in accordance with which such a capital contribution loan was the provisions of this regulation." originally made between partners in the same This means that in obtaining the loan the firm, and thus qualified under clause (A) of domestic broker must not be receiving more the provision, but the lender later proposed credit on given securities than he could get to withdraw from the partnership. The on those securities, in the case of a loan of Board was asked whether the loan, because the same description, from a domestic "broker of its one-time status under clause (A), might or dealer who transacts a business in securi- be continued after the lender's withdrawal ties through the medium of a member," and from the partnership, or whether the loan must not otherwise be obtaining any benefits must then be terminated if it is not authorthat such a domestic broker or dealer could ized by some other provision of the regulation. not lawfully grant under the regulation. One It is the view of the Board that the permisresult of this requirement is that the loan sion granted by clause (A) continues only may not be obtained on the basis of the special while the conditions specified therein are met. loan value prescribed for the special omnibus Accordingly, such a loan between partners in account, because section 4(b) of the regula- the same firm may not be continued after the tion limits such loans to cases in which the lender withdraws from the partnership unlender is a member of a national securities less the loan can qualify under some other exchange. It is, of course, unnecessary for provision of the regulation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1939 FEDERAL RESERVE BULLETIN 723 In the particular case presented, the lender tomers—that a loan to a partner in such a after withdrawal from the partnership was firm to enable him to make a contribution of to continue to be a member of the national capital to the firm usually could not qualify securities exchange of which the borrower as being for a "purpose other than purchaswas a member. Therefore, if the loan is ing or carrying or trading in securities." approved by an appropriate committee of the exchange pursuant to clause (B) of section Social Security Act Made Applicable to Member Banks 4(f)(2), it could, of course, be continued pursuant to that provision. In the FEDERAL RESERVE BULLETIN for November 1936, at page 857, there were pub- For the sake of completing the answer to lished the texts of rulings of the Bureau of the question presented, however, it is neces- Internal Revenue holding that national banks sary to consider one other possible alternaand State member banks are instrumentaltive, that is, the possibility that the loan could ities of the United States within the meaning qualify under section 4(f) (8) of the regulaof the Social Security Act, and that, accordtion, which provides for loans that are "for ingly, neither such banks nor their employees any purpose other than purchasing or carrywere subject to the taxes imposed by that Act. ing or trading in securities." On August 10, 1939, the President ap- The reason section 4(f) (8) may be releproved the Social Security Act Amendments vant to the question presented in this case is of 1939 (Pub. No. 379, 76th Cong.). Among that while the exact relation of the instant other things, all national banks and State loan to the business of the borrower's firm member banks, as of January 1, 1940, will was not entirely clear, it appeared that the become subject to the Social Security Act and borrower's firm was engaged not only in the the employment taxes imposed by the Intersecurities business but also, and to a very nal Revenue Code as the result of amendconsiderable extent, in the commodity busiments to the definition of the term "employness. There would, therefore, be at least ment" contained in section 209 (b) of the some possibility that the loan in question Social Security Act and in sections 1426 (b) could qualify as a loan for a "purpose other and 1607 (b) of the Internal Revenue Code. than purchasing or carrying or trading in securities." Whether the loan could in fact so qualify PROCLAMATION AND AMENDMENT TO REGUwould depend, of course, upon the facts of the LATIONS RELATING TO SILVER particular case, and instances where capital The President's proclamation of July 25, contribution loans could so qualify would be 1939, and an amendment to the Treasury rather rare. In certain cases, of which the regulations of January 16, 1939, concerning present case involving a considerable amount newly-mined domestic silver are published of commodity business might turn out to be below. Earlier laws, proclamations, and oran example, it might be possible for a loan ders relating to silver which have been pubto be made under such conditions that it lished in the BULLETIN are listed in the annual could actually be identified as being for a indexes for the years 1934, 1935, and 1938 "purpose other than purchasing or carrying and in the monthly issues for February and or trading in securities." It is evident, how- August 1939. ever, that it would be rather unusual for a BY THE PRESIDENT OF THE UNITED STATES OF capital contribution loan to be thus identifi- AMERICA able. The business of the average securities A PROCLAMATION brokerage firm is so bound up with purchas- WHEREAS, by Proclamation of the twenty-first day ing, carrying or trading in securities—either of December, 1933, as modified by Proclamations of the ninth day of August, 1934, the tenth and twentyfor its own account or for the account of cusfourth days of April, 1935, the thirtieth day of De- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

724 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 cember, 1937, and the thirty-first day of December, Amendments to Newly-Mined Domestic 1938, the United States coinage mints are directed Silver Regulations to receive for coinage and addition to the monetary of January 16, 1939 stocks of the United States silver mined subsequently to December 21, 1933, from natural deposits in the SECTION 1 of the Newly-Mined Domestic Silver United States or any place subject to the jurisdiction Regulations of January 16, 1939, is amended to read thereof; as follows: AND WHEREAS, such Proclamation as so modified is "SECTION 1. Scope.—These regulations relate subject to revocation or further modification as the to the receipt and coinage by the United States interests of the United States may seem to require. coinage mints of silver, mined in the United NOW, THEREFORE, finding that the interests of the States or any place subject to the jurisdiction United States require further modification of said thereof, pursuant to the Proclamation of De- Proclamation of the twenty-first day of December, cember 21, 1933, as modified by the Proclama- 1933, as so modified; by virtue of the power in me tions of August 9, 1934, April 10 and April 24, vested by the Act of Congress cited in said Proclama- 1935, December 30, 1937, December 31, 1938, and tion, and other legislation designated for national July 25, 1939." recovery, and by virtue of all other authority in me vested; SECTION 2 of the Newly-Mined Domestic Silver I, FRANKLIN D. ROOSEVELT, President of the United Regulations of January 16, 1939, is amended to read States of America, do hereby proclaim and direct as follows: that, unless repealed or further modified by Act of "SEC. 2. Authority for regulations.—These Congress or by subsequent Proclamation, the said regulations are prescribed under authority of Proclamation of the twenty-first day of December, subsection (b) (2), section 43, title III of the 1933, as heretofore and hereby modified, shall re- Act of Congress approved May 12, 1933, (Pubmain in force and effect until the thirtv-first day of lic, No. 10), as amended, and the President's December, 1939, with respect to silver mined subse- Proclamation of December 21, 1933, as modified quently to December 21,1933, and on or before July 1, by the Proclamations of August 9, 1934, April 1939, from natural deposits in the United States or 10 and April 24, 1935, December 30, 1937, Deany place subject to the jurisdiction thereof; and I cember 31, 1938, and July 25, 1939." do further proclaim and direct that the proviso: "that silver to be eligible for receipt under the SEC. 3. Section 20 (c) of the Newly-Mined Domessaid Proclamation of the twenty-first day of tic Silver Regulations of January 16, 1939, is December, 1933, as heretofore and hereby modi- amended to read as follows: fied must be delivered to a United States coinage "(c) That the aggregate amount of such mixmint not later than June 30, 1939." ture so received pursuant to the Proclamation of stated in the said Proclamation of the thirty-first December 30, 1937, as modified, modifying the day of December, 1938, is hereby rescinded. Proclamation of December 21, 1933, as modified, Notice is hereby given that I reserve the right by does not exceed the amount of such silver which virtue of the authority vested in me to revoke or has been mined on or after January 1, 1938, from modify this Proclamation as the interests of the natural deposits in the United States or any United States may seem to require. place subject to the jurisdiction thereof." In witness whereof, I have hereunto set my hand and caused the seal of the United States to be SEC. 4. Section 24 of the Newly-Mined Domestic affixed. Silver Regulations of January 16, 1939, is hereby Done at the City of Washington this 25th day of rescinded. July, in the year of our Lord nineteen hundred and HENRY MORGENTHAU, JR., thirty-nine, and of the Independence of the United Secretary of the Treasury. States of America the one hundred and sixty-fourth. Approved: By the President: FRANKLIN D. ROOSEVELT. FRANKLIN D. ROOSEVELT, CORDELL HULL THE WHITE HOUSE, Secretary of State. July 25, 1939. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

725 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 RATES CHARGED BY BANKS ON CUSTOMERS9 LOANS Interest rates on commercial loans to cus- Geographical differences in the structure tomers charged by member banks in 19 prin- of rates on commercial loans is brought out by cipal cities have now been reported to thethe chart. The principal differences shown Board for two quarterly periods, March 16-31 may be summarized as follows: and June 1-15, 1939. In September 1938 a In New York City, although the average preliminary survey was conducted for therate is around 2^4 Per cent, about 60 per purpose of testing the reporting of these rates cent of the money lent to commercial borrowand the results were published in the January ers is at rates between 1 and 2 per cent and 1939 FEDERAL RESERVE BULLETIN, pages less than 15 per cent at rates above 3 per cent. 17-19. About 20 per cent of the borrowers pay the Between March and June average rates on low rates between 1 and 2 per cent or about commercial loans showed little change. They the same number reported in each of the rate average about 214 per cent in New York groups shown on the chart. City, about 3 per cent in the 7 other Northern and Eastern cities, and about 3% per cent in DISTRIBUTION OF COMMERCIAL LOANS ACCORDING TO INTEREST RATES CHARGED 11 Southern and Western cities. As compared with last September there was a slight increase in reported average rates which does 60 PER CENT OF TOTAL DOLLAR 60 not represent a change in actual credit con- 50 VOLUME OF NEW LOANS 50 ditions and apparently reflects principally 40 NEW YORK CITY 40 differences of a statistical nature. The dif- 30 30 ferences may be due to changes in the defini- 20 20 tion of loans on which rates were reported: 10 10 loans of less than 30-day maturity were in- 0 0 cluded in September but excluded in March and June; also, reporting of renewal rates, 40 40 which are probably higher than rates on new 30 V OTHER NORTHERN AND EASTERN CITIES 30 loans, was optional in September but was20 20 specifically included in the March and June 10 10 •_• reports. It may also be that in September 0 0 borrowers for seasonal reasons included a number of large commercial and industrial 30 11 SOUTHERN AND WESTERN CITIES 30 concerns which command lower rates than 20 lull 20 borrowers in the other months. 10 I 10 0 The chart shows the percentages of total dollar volume and of total number of commercial loans made at different rates as re- INTEREST RATE CHARGED* ported in June. Figures are charted separately for New York City and for the two In the 7 other Northern and Eastern cities groups of cities: 7 other Northern and East- about 30 per cent of the funds being lent for ern cities, covering Boston, Buffalo, Philadel- commercial purposes is at rates between 1 and phia, Cleveland, Pittsburgh, Chicago, and De- 2 per cent and 60 per cent at rates from 2 to troit; and 11 Southern and Western cities, 5 per cent, with but a small amount at higher covering Richmond, Baltimore, Atlanta, New rates. Only a few borrowers get the lowest Orleans, St. Louis, Minneapolis, Kansas City, rates and about 60 per cent pay over 5 per Dallas, San Francisco, Los Angeles, and cent, the most numerous paying rates of 6-7 Seattle. per cent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

726 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 In the 11 Southern and Western cities not of commercial loans is lent at rates higher quite 20 per cent of the commercial funds than 6 per cent. Over 50 per cent of the borbeing lent is at rates between 1 and 2 per cent rowers, however, pay 6 per cent or more and and the remainder is distributed over rates about 35 per cent pay rates from 4 up to 6 from 2 up to 6 per cent. About 10 per cent per cent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1939 FEDERAL RESERVE BULLETIN 727 ALL MEMBER BANKS—CONDITION ON JUNE 30, 1939, BY CLASSES OF BANKS [Amounts in thousands of dollars] All Central reserve city All national All State member banksl Reserve Country member member member city member banks banks banks member banksl New York Chicago banks 1 ASSETS Loans (including overdrafts) 13,141, 068 8, 553, 015 4, 588, 053 2, 988, 075 544, 206 5, 004, 282 4, 604, 505 United States Government direct obligations 10, 946, 242 6, 884, 452 4, 061, 790 3, 360, 281 1, 039, 800 4,102, 082 2, 444,079 Obligations guaranteed by United States Government._. 2, 830, 819 1, 869, 185 . 961, 634 1,123, 468 135,109 888, 862 683, 380 Obligations of Government corporations and agencies, not guaranteed by United States 380,199 266,180 114,019 143, 590 26, 610 116, 208 93, 791 Obligations of States and political subdivisions 2, 554, 213 1, 690, 667 863, 546 480,144 153, 797 894, 859 1, 025, 413 Other bonds, notes, and debentures 2, 301, 694 1, 592, 685 709,009 425, 587 123,163 593, 722 1,159, 222 Corporate stocks (including Federal Reserve bank stock). 449,184 225, 058 224,126 166, 512 28, 897 155, 594 98,181 Total loans and investments 32, 603, 419 21, 081, 242 11, 522,177 8, 687, 657 2, 051, 582 11, 755, 609 10,108, 571 Reserve with Federal Reserve banks 10, 010, 744 5, 640, 067 4, 370, 677 4, 975, 097 897, 319 2, 735,155 1, 403,173 Cash in vault 712, 132 526, 738 185, 394 60, 840 318, 247 306, 946 Demand balances with banks in United States (except private banks and American branches of foreign banks). 4, 542, 241 3, 514, 263 1, 027, 978 109, 314 222,164 2,150, 846 2,059, 917 Other balances with banks in United States 132,012 98, 868 33,144 2,275 13, 215 59, 284 57, 238 Balances with banks in foreign countries 42, 887 23, 954 18, 933 26,138 2,199 11,911 2,639 Due from own foreign branches 5, 776 2,937 2,839 2,839 2,93^ Cash items in process of collection 2,183, 072 1, 256, 694 926, 378 1, 029, 002 117,730 754, 659 281, 681 Bank premises owned and furniture and fixtures 933, 703 607, 484 326, 219 209, 821 20, 731 324, 342 378, 809 Other real estate owned 305, 475 141, 212 164, 263 30,183 4,904 115,184 155, 204 Investments and other assets indirectly representing bank premises or other real estate 146, 910 70, 417 76, 493 20, 464 902 97, 337 28, 207 Customers' liability on acceptances 101, 672 51, 655 50, 017 75, 088 2,339 22, 606 1,639 Income accrued but not yet collected 102, 595 60, 381 42, 214 32, 989 8,225 41, 703 19, 678 Other assets 85, 491 43, 050 42, 441 20, 486 6,299 36,167 22, 539 Total assets. 51, 908,129 33,118, 962 18, 789,167 15, 282,193 3, 373, 708 18, 425, 987 14, 826, 241 LIABILITIES Demand deposits—Total 34,153, 939 21, 258,188 12, 895, 751 12, 632, 817 2, 601, 814 11, 806,120 7,113,188 Individuals, partnerships, and corporations 22, 448,169 13, 625, 703 8, 822, 466 8, 280, 594 1, 564, 810 7, 330, 844 5, 271, 921 United States Government2 694, 001 488, 537 205, 464 84,010 59, 560 414, 683 135, 748 States and political subdivisions 2, 531, 570 1, 930, 608 600, 962 288,071 196, 756 917, 221 1,129, 522 Banks in United States 7, 096, 824 4, 515, 244 2, 581, 580 2, 991, 945 746, 411 2, 919, 531 438, 937 Banks in foreign countries 593, 222 255, 314 337, 908 515, 730 12,133 63, 460 1,899 Certified and officers' checks, cash letters of credit and travelers' checks, etc 790,153 442, 782 347, 371 472, 467 22,144 160, 381 135,161 Time deposits—Total 11, H9, 315 8,157, 495 3, 561, 820 707, 831 488, 375 4, 693,271 5, 829, 838 Individuals, partnerships, and corporations: Savings deposits 9, 662, 028 6, 753, 237 2, 908, 791 376, 478 414, 979 3, 859, 714 5,010, 857 Certificates of deposit 709, 234 550, 670 158, 564 24, 783 24, 418 179, 929 480,104 Christmas savings and similar accounts 98, 122 68, 353 29, 769 6,023 899 32, 789 58, 411 Open accounts 593, 845 269, 258 324, 587 246, 036 30, 629 247, 810 69, 370 Postal savings 2 59,135 51, 360 7,775 19, 225 39, 910 States and political subdivisions 441, 200 353, 891 87, 309 45, 856 l7,450 233, 062 144, 832 Banks in United States 141, 738 102, 543 39,195 327 115, 057 26, 354 Banks in foreign countries 14, 013 8, 183 5,830 8,328 5,685 Total deposits 45, 873, 254 29, 415, 683 16, 457, 571 13, 340, 648 3, 090,189 16, 499, 391 12, 943, 026 Due to own foreign branches 188, 399 133, 878 54, 521 188, 399 Bills payable, rediscounts, and other liabilities for borrowed money 4, 662 3,540 1, 122 102 4,560 Acceptances outstanding 120,164 57, 635 62, 529 90, 247 2,597 25, 645 1, 675 Dividends declared but not yet payable 35, 832 22, 610 13, 222 17, 759 750 10, 869 6,454 Income collected but not yet earned 51, 880 35, 261 16, 619 9,436 1,506 26, 102 14, 836 Expenses accrued and unpaid 78, 451 45, 906 32, 545 18, 894 7,365 33, 726 18, 466 Other liabilities 59, 261 22, 659 36, 602 30, 698 18, 594 8,976 Total liabilities.. 46, 411, 903 29, 737,172 16, 674, 731 13, 696, 081 3,103, 400 16, 614, 429 12, 997, 993 CAPITAL ACCOUNTS Capital 2, 390, 023 1, 559, 181 830, 842 548, 312 126, 500 794, 564 920, 647 Surplus 2, 111, 569 1,168, 553 943, 016 808, 614 72, 383 658, 015 572, 557 Undivided profits 678, 033 449, 079 228, 954 170,188 38, 847 233,170 235, 828 Reserves for contingencies.. 276, 687 173, 816 102, 871 55, 652 32,158 112, 529 76, 348 Other capital accounts 31, 161 8,753 3,346 420 13, 280 22, 868 39, 914 Total capital accounts _. 3, 381, 790 2,114, 436 1, 586,112 270, 308 1, 811, 558 1, 828, 248 5, 496, 226 Total liabilities and capital accounts. 33,118, 962 18, 789,167 15, 282,193 3, 373, 708 18, 425, 987 14, 826, 241 51, 908,129 Net demand deposits subject to reserve .... 27, 440, 926 16, 493, 696 10, 947, 230 11,494,501 2, 263, 226 8, 903, 883 4, 779, 316 Demand deposits—adjusted 3 23, 586, 820 14, 742, 399 8, 844, 421 8, 012,130 1, 665, 980 7, 653, 787 6, 254, 923 6,330 5,203 1,127 36 13 346 5,935 Number of banks 1 Banks are classed according to the reserves which they are required to carry (see page 797). Some banks classed as "country banks" are in outlying sections of reserve cities or central reserve cities, and some banks classed as "reserve city banks" are in outlying sections of central reserve cities. Figures for each class of banks include assets and liabilities of their domestic branches, whether located within or outside the cities in which the parent banks are located. 2 United States Treasurer's time deposits, open account, are combined with postal savings (time) deposits. 3 Demand deposits other than interbank and United States Government, less cash items reported as in process of collection. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

728 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 ALL MEMBER BANKS—CLASSIFICATION OF LOANS, INVESTMENTS, REAL ESTATE, AND CAPITAL ON JUNE 30, 1939, BY CLASSES OF BANKS [In thousands of dollars] Central reserve city All All member banks 1 Reserve Country All national State city member member member member member banksl banks banks banks New Chicago banks 1 York Loans—totaL 13,141, 068 8, 553, 015 4, 588, 0532, 988, 075 544, 206 5, 004,2824, 604,505 Commercial and industrial loans 4, 782, 7423,139, 218 1, 643, 5241, 473, 941 329, 275 1, 884, 3881, 095,138 Agricultural loans 788, 451 679, 559 108, 892 5,332 18, 727 233, 831 530, 561 Commercial paper bought in open market 244, 623 167, 725 6,049 10, 975 92, 076 135, 523 Bills, acceptances, etc., payable in foreign countries 8,564 6,516 2,048 548 1,364 5,065 1,587 Acceptances of other banks, payable in United States.. 66, 526 31, 806 34, 720 57, 466 225 7,565 1,270 Reporting banks' own acceptances 100, 346 60,802 39, 544 63, 615 2,104 33, 034 1,593 Loans to brokers and dealers in securities 730, 774 289,907 440,867 555, 426 39,006 114, 641 21, 701 Other loans for purchasing or carrying securities 736, 053 443,184 292, 869 214, 710 71,420 220, 915 229,008 Real estate loans: On farmland 284,176 229, 808 54, 368 879 237 95, 786 187, 274 On residential property. 1, 775, 6001,138, 353 637, 247 60, 691 6,758 811, """ 897, 084 On other properties 768, 470 453, 414 315, 056 68, 464 4,597 377, 420 317, 989 Loans to banks 58, 297 24, 438 33, 859 40, 739 126 12, 093 5,339 All other loans 2, 783, 4551, 883, 604 899, 851 432, 346 59, 235 1,113, 3941,178, 480 Overdrafts 12, 991 4,681 8,310 7, -r "" 157 3,007 1,958 U. S. Government direct obligations—total. 10, 946, 2426, 884, 452 4, 061, 7903, 360, 281 1, 039, 8004,102, 0822, 444, 079 Treasury bills 441,147 320, 611 120, 536 167, 684 184, 562 78, 346 10, 555 Treasury notes 2, 719, 5671, 796, 315 923, 252 908, 325 234, 351 1, 013, 583 563, 308 Bonds maturing in 5 years or less 781, 374 509, 297 272, 077 327, 97' 36,131 272, 838 144, 427 Bonds maturing in 5 to 10 years 2, 826,1451, 678, 419 1,147, 726 827, 266 119, 483 1, 223, 964 655, 432 Bonds maturing in 10 to 20 years 2, 889, 2541, 833, 452 1,055, 802 755, 766 301,162 1, 091, 254 741, 072 Bonds maturing after 20 years 1, 288, 755 746,358 542, 397 373, 262 164, 111 422,097 329, 285 Obligations guaranteed by United States Government—total.. 2, 830, 8191, 869,185 961, 634 1,123, 468 135,109 888, 862 683,380 Total amount maturing in 5 years or less 1,370,289 808, 217 708,197 119,. 309, 453 233,159 Reconstruction Finance Corporation 642, 034 389, 271 252, 763 361, 93, 766 111, 64^ 74, 853 Home Owners' Loan Corporation 1, 458, 144 977, 392 480, 752 503, 755 18,116 541, 043 395, 230 Federal Farm Mortgage Corporation 487, 010 355, 773 131, 237 165, 446 6,337 153, 794 161, 433 Other Government corporations and agencies 243, 631 146, 749 92, 499 16, 890 82, 378 51, 864 Obligations of Government corporations and agencies, not guaranteed by United States—total 380,199 266,180 114, 019 143, 590 26, 610 116, 208 93, 791 Total amount maturing in 5 years or less 282, 723 186,; " 96,455 134,070 16, 416 85,. 46,389 Federal Land banks 96, 823 79, 912 16,911 9,522 10,195 29, 948 47,158 Federal Intermediate Credit banks 141,010 85, 335 55, 675 80, 332 10, 977 43, 442 6,259 Other Government corporations and agencies 142, 366 100, 933 41, 433 53, 736 5,438 42, 818 40, 374 Obligations of States and political subdivisions-total. 2, 554,2131, 690, 667 863,546 480,144 153, 797 894, 85S 1, 025, 413 In default 8,566 6,026 2,540 963 244 3,897 3,462 W ithout specific maturity 144, 018 117, 796 26, 222 3,310 37, 880 48, 538 54, 290 Maturing in 5 years or less 1, 531, 203 927, 799 603, 404 390, 135 88, 728 513,163 539, 177 Maturing after 5 years 870, 426 639, 046 231, 380 85, 736 26, 945 329, 261 428, 484 Other bonds, notes, and debentures—total. 2, 301, 6941, 592, 685 709, 009 425, 587 123,163 593, 722 1,159,222 Total amount in default 87,275 52,617 34, 658 25, 352 1,' 28, 781 31,275 Total amount maturing in 5 years... 447, 948 263,013 I84,935 95,059 48,1 138, 618 165,289 Railroads 746, 545 533,167 213, 378 121, 241 20, 383 182, 665 422, 256 Public utilities 704, 622 477, 111 227, 511 119, 351 48,193 168, 077 369, 001 Industrials 566, 391 405, 355 161, 036 105, 733 37, 669 158, 541 264, 448 Other domestic corporations 51, 809 43, 660 15, 075 1,105 36, 562 42, 727 Foreign—public and private 125, 243 63, 424 64,187 15, 813 47, 877 60, 790 Corporate stocks—total 449,184 225,058 224,126 166,512 28,897 155, 594 98,181 Federal Reserve bank 134, 942 81, 786 53,156 40, 709 5,965 43, 376 44, 892 Affiliates of reporting banks.. 103, 543 47, 046 56, 497 48, 002 276 48, 797 6,468 Other domestic banks 22,169 9,135 13, 034 2,819 20 10, 421 8,909 Other domestic corporations.. 186, 554 86, 200 100, 354 74, 371 22, 609 52,177 37, 397 Foreign corporations 1,976 1,085 611 27 823 515 ank premises, furniture and fixtures, and other real estate—total- 1,239,178 748, 696 490, 482 240, 004 25, 635 439, 526 534, 013 Bank premises 855, 728 546, 739 209,013 20, 649 290, 822 335, 244 F R F O a u e th r s r m n i e d r i e t l r u n a e r n t a e i d l a l a p ( n r p i d o n r p o c f l e p i u x r e d t t r i u i t e n i r s e e g s s improvements) 1 15 2 7 23 5 6 7, , , , 9 5 6 2 7 6 5 5 5 1 7 7 6 5 7 1 0 1 7 2 , , , , 1 7 0 9 9 4 9 2 7 5 3 2 8 7 1 4 3 7 6 , , , ,4 0 7 2 6 3 6 3 4 5 4 0 1 18 1 , , 8 9 2 0 2 3 1 8 9 6 8 2 1 , , 4 9 4 8 5 7 7 2 4 6 4 4 3 6 1 3 5 7 , , , , 8 3 5 9 9 3 2 5 4 6 0 4 4 6 7 15 3 7 2 , , , , 2 5 7 H 5 6 9 O 1 5 3 Assets indirectly representing bank premises or other real estate—total 146, 910 70, 417 76, 493 20, 464 902 97, 337 28, 207 Investments 96, 688 51, 780 44, 908 18,130 842 59, 857 17, 859 Other assets 50, 222 18, 637 31, 585 2,334 37, 480 10, 348 Capital: Par or face value—total 2, 393, 808 1, 562, 228 831, 580 548, 312 126, 500 794, 564 924, 432 Capital notes and debentures.. 42, 749 42, 749 489 25, 394 16, 866 First preferred stock 300, 496 230, 03, 70, 461 9,428 25, 700 105, 504 159, 864 Second preferred stock 24, 237 16, 41' 7,820 8,10C 16,137 Common stock 2, 026, 326 1, 315, 776 710, 550 538, 395 166," 800 655, 566 731, 565 Retirable value of— First preferred stock 368, 795 261, 464 107, 331 23, 271 25, 700 126, 601 193, 223 Second preferred stock. 29, 674 18, 408 11, 266 8,500 21, 174 1 JFor footnote see preceding page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

729 SEPTEMBER 1939 FEDERAL RESERVE BULLETIN NUMBER OF BANKS AND BRANCHES, 1933-1939 [Figures for 1939 are preliminary] Member banks Nonmember banks Other than mutual End of year figures Total savings and except where otherwise indicated National State private banks M sav u i t n u g a s l Private 2 Insured i ins N u o r t ed J Number of Banking Offices 1933 17, 940 6,275 1,817 9,)41 704 103 1934 19,196 6,705 1,961 3 9,579 705 246 1935 _ _ _ . 19,153 6,715 1,953 8,556 1,088 698 143 1936 19,066 6,723 2,032 8,436 1,043 693 139 1937 18,927 6,745 2,075 8,340 997 691 79 1938 - 18, 774 6,723 2,106 8,224 958 690 73 1939 (June 30) 18,681 6,721 2,120 8,150 932 4 689 5 69 Number of Banks (Head Offices) 1933 15,029 5,154 857 8,341 579 98 1934 16,063 5,462 980 7,693 1,108 579 241 1935 _ 15,869 5,386 1,001 7,728 1,046 570 138 1936 15, 667 5,325 1,051 7,588 1,004 565 134 1937 15, 387 5,260 1,081 7,449 960 563 74 1938 15,194 5,224 1,114 7,316 917 555 68 1939 (June 30) 15, 074 5,203 1,127 7,236 890 554 64 Number of Branches 6 1933 2,911 1,121 960 710 125 5 1934 3,133 1,243 981 778 126 5 1935 3,284 1,329 952 828 42 128 5 1936 - . . 3,399 1,398 981 848 39 128 5 1937 3,540 1,485 994 891 37 128 5 1938 . . .. _ 3,580 1,499 992 908 41 135 5 1939 (June 30) .__ ___ ._ 3,607 1,518 993 914 42 135 5 1 Federal deposit insurance did not become operative until January 1, 1934. 2 The figures for December 1934 include 140 private banks which reported to the Comptroller of the Currency under the provisions of Section 21 (a) of the Banking Act of 1933. Under the provisions of the Banking Act of 1935, private banks no longer report to the Comptroller of the Currency and, accordingly, only such private banks as report to State banking departments are in the figures shown for subsequent years. 3 Separate figures not available for branches of insured and not insured banks. 4 Comprises 50 insured banks with 21 branches and 504 uninsured banks with 114 branches. 5 Comprises 1 insured bank with no branches and 63 uninsured banks with 5 branches. 6 The number of branches in head-office cities and outside head-office cities, respectively, were as follows: In head-office cities Outside head-office cities 1933 1,784 1,127 1934 1,776 1,357 1935___ 1,754 1,530 1936 1,749 1,650 1937 1,757 1,783 1938 1,743 1,837 1939 (June 30) _ 1,740 1,867 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

730 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 ANALYSIS OF CHANGES IN NUMBER OF BANKS AND BRANCHES, JANUARY 1—JUNE 30, 1939 [Preliminary figures] Member banks Nonmember banks Other than mutual savings and Total private banks National State M sav u i t n u g a s l Private Insured Not insured Analysis of Bank Changes Number of banks on December 31, 1938 15,194 5,224 1,114 7,316 917 555 68 Increases in number of banks: Primary organizations (new banks) i _ _ _ _ +8 +2 +1 +4 +1 Decreases in number of banks: Suspensions^ _ _ _ _ _ -30 -4 -2 -18 -6 Voluntary liquidations 2 -25 -3 -2 -8 -8 -4 Consolidations, absorptions, etc. _ _ _ _ . _. .__ -73 -19 -4 -46 -3 -1 Inter-class bank changes: Conversions— State into national +9 -6 -3 Fede N ra a l t i R on e a s l e r i v n e t o m S e t m at b e e rship—3 _____._. -6 +1 +5 Admissions of State banks _ _ . . +29 -29 Fede W ra i l t h d d e r p a o w si a t ls i n o s f u r S a t n a c te e — ba 4 nks -4 +4 Admissions of State banks +11 -11 Withdrawals of State banks _ _ Net increase or decrease in number of banks. -120 -21 +13 -80 -27 -1 -4 Number of banks on June 30, 1939 _ - 15, 074 5,203 1,127 7,236 890 554 64 Analysis of Branch Changes Number of branches on December 31, 1938 ___ 3,580 1,499 992 908 41 135 5 Increases in number of branches: De novo branches +27 +4 +5 + 17 +1 Banks converted into branches +30 +8 +3 +19 Decreases in number of branches: Suspension of parent bank -9 -7 -2 Otherwise discontinued __ __ _ ___ _ _ -21 -2 -9 -10 Inter-class branch changes: Branches of a National bank which became a State member bank -4 +4 Branches of a nonmember bank which became a National bank + 13 — 13 Branches of nonmember banks which became branches of State member banks 6 _ _ _ _ +5 -5 Net increase or decrease in number of branches.._ _ +27 +19 +1 +6 +1 Number of branches on June 30, 1939 _ _ 3,607 1,518 993 914 42 135 5 1 Exclusive of new banks organized to succeed operating banks. 2 Exclusive of liquidations incident to the succession, conversion and absorption of banks. 3 Exclusive of conversions of national banks into State bank members, or vice versa, as such conversions do not affect Federal Reserve membership. 4 Exclusive of conversions of member banks into insured nonmember banks, or vice versa, as such conversions do not affect Federal Deposit Insurance Corporation membership. 5 Includes 2 branches of an insured nonmember bank which was absorbed by a State member bank and 3 branches of 2 insured nonmember banks which became State member banks. Back figures—See Annual Report for 1938 (tables 13 and 14), and BULLETIN for November 1937, pp. 1084-1122. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1939 FEDERAL RESERVE BULLETIN 731 ESTIMATED EXPENDITURES FOR NEW DURABLE GOODS 1919-1938 by GEORGE TERBORGH In view of the great influence of expendi- small tools, durable shop supplies, and simitures for durable goods on the course of busi- lar items customarily charged to current exness activity and the national income, esti- pense, as well as disbursements for repairs mates have been compiled of the annual and maintenance generally. So far as posamounts of such expenditures. Tables giving sible, all expenditures are taken as and when these estimates for the period 1919-1938 are made by the final purchasers of the goods in here presented. In the absence of precise and question, hence their timing may differ somecomprehensive statistics for most types of what from that of activity in the production durable goods, the estimates have been de- of the goods. rived from a careful analysis of sample data The distinction between expenditures for and, as the accompanying notes will indicate, plant and those for equipment turns primartheir quality varies considerably from one ily on the mobility of the goods. Under plant series to another. are included all fixed improvements to land, Durable goods are defined for the present such as buildings, highways, railroad trackpurpose as those having a normal useful life age, electric transmission lines, drainage in excess of three years. Except in a few and irrigation projects, oil wells, and the like. cases the data relate only to expenditures All movable goods are classed as equipment. which under business accounting practice are properly chargeable to capital account.1 SOURCES AND METHODS TABLE 1 They therefore exclude parts and accessories, Except for public construction, this table presents merely a recapitulation of series assembled in later 1 The most important exception is expenditures for durable tables, under which the discussion of sources and household goods. Other departures from this rule are minor, and are mentioned in the accompanying notes. methods will be found. TABLE 1 ESTIMATED EXPENDITURES FOR NEW DURABLE GOODS [In millions of dollars] Public and Private Private Public Producers' and Consumers' Producers Consumers Equip- Total Plant ment Plant Equip- Equip- Equip- Total Plant ment Total Plant ment Total Plant ment 1919 15, 455 6,048 9,407 14, 543 5,136 9,407 7,095 3,166 i 3, 929 7,448 1,970 5,478 2912 1920 17, 933 6,898 11,035 16, 721 5,686 11,035 8,327 3,738 i 4, 589 8,394 1,948 6,446 2 1, 212 1921 14,131 6,313 7,818 12, 606 4,788 7,818 5,233 2,475 i 2, 758 7,373 2,313 5,060 2 1, 525 1922 16, 908 8,102 8,806 15, 251 6, 445 8,806 5,784 2,644 3,140 9,467 3,801 5,666 1,657 1923 21, 582 9,699 11, 883 19, 984 8,101 11,883 7,902 3,280 4,622 12, 082 4,821 7,261 1,598 1924_ 21, 908 10, 398 11,510 20, 046 8,536 11,510 7,650 3,307 4,343 12, 396 5,229 7,167 1,862 1925 23, 834 11, 449 12, 385 21, 726 9,341 12, 385 8, 189 3,591 4,598 13, 537 5,750 7,787 2,108 1926 25, 284 11, 833 13, 451 23,171 9,720 13, 451 9, 126 4,185 4,941 14, 045 5,535 8,510 2,113 1927 24, 602 11, 858 12, 744 22, 234 9,490 12, 744 8,777 4,133 4,644 13, 457 5,357 8, 100 2,368 1928 24, 920 11, 584 13, 336 22,' 458 9,122 13, 336 8,846 4,103 4,743 13, 612 5,019 8,593 2,462 1929 25, 532 10, 734 14, 798 23,121 8,323 14, 798 10,157 4,562 5,595 12, 964 3,761 9,203 2,411 1930 20, 443 8, 836 11, 607 17, 666 6,059 11, 607 8,340 3,768 4,572 9,326 2,291 7,035 2,777 1931 14, 771 6,494 8, 277 12, 194 3,917 8,277 5,123 2, 182 2,941 7,071 1,735 5,336 2,577 1932 8,650 3,695 4, 955 6,856 1,901 4,955 2, 799 1,192 1, 607 4, 057 709 3,348 1,794 1933 7,607 2,655 4,952 6,277 1,325 4,952 2,371 867 1,504 3,906 458 3,448 3 1, 330 1934 10, 386 3, 687 6, 699 8,349 1,650 6,699 3,436 1, 129 2,307 4,913 521 4,392 * 2, 037 1935 12, 639 4,005 8,634 10, 805 2,171 8,634 4,349 1,258 3,091 6,456 913 5,543 3 1, 834 1936 17, 654 6,470 11, 184 14, 370 3,186 11,184 5,783 1,650 4,133 8,587 1,536 7,051 3 3, 284 1937 19, 993 6,991 13, 002 17, 204 4,202 13, 002 7, 570 2,294 5,276 9,634 1,908 7,726 3 2, 789 1938 P16, 460 P7, 036 P9, 424 P13,101 *3, 677 P9, 424 P5, 471 PI, 860 P3, 611 vl, 630 1,817 P5,813 s P3, 359 p Preliminary. 1 Excludes ships built for the Emergency Fleet Corporation. 2 Excludes special war-time military construction. 3 Includes work-relief construction. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

732 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 TABLE 2 ESTIMATED EXPENDITURES FOR NEW DURABLE PRODUCERS' GOODS PLANT AND EQUIPMENT [In millions of dollars] Commer- Electric Tele- Other Mining Agri- cial and Total Railroads Power phones Transit Utilities and Man- culture miscelufacturing laneous 1919 7,095 374 260 132 123 155 3,121 1,237 i 1, 693 1920— 8,327 630 437 203 162 181 3,538 1,376 i 1, 800 1921 5,233 550 276 229 100 137 2,034 556 i 1, 351 1922 5,784 434 395 265 151 236 2,169 575 1,559 1923._ 7,902 1,077 723 318 180 245 2,680 750 1,929 1924._. 7,650 901 827 385 133 355 2,352 704 1,993 1925 8,189 728 766 385 123 300 2,726 800 2,361 1926___ 9,126 883 704 404 116 380 3,169 845 2,625 1927 8,777 751 722 397 130 427 2,854 907 2,589 1928 . 8,846 673 679 457 135 348 3,052 901 2,601 1929__._ , 10,157 840 774 615 135 369 3,596 992 2,836 1930 8,340 865 835 612 124 298 2,541 730 2,335 1931 5,123 360 538 408 132 243 1,435 411 1,596 1932__ . 2,799 164 257 253 61 127 930 191 816 1933 2 371 101 113 171 46 57 992 234 657 1934 3,436 218 126 185 78 73 1,460 356 940 1935 _ . 4,349 166 166 206 117 86 1,807 591 1,210 1936 5,783 306 251 261 109 135 2,403 729 1,589 1937 7,570 525 400 348 101 162 3,122 919 1,993 1938 P5, 471 238 422 318 83 P102 P2, 057 P764 PI, 487 p Preliminary. 1 Excludes ships built for tbe Emergency Fleet Corporation. TABLE 3 ESTIMATED EXPENDITURES FOR NEW DURABLE PRODUCERS' GOODS PLANT [In millions of dollars] Commer- Electric Tele- Other Mining Agri- cial and Total Railroads Power phones Transit Utilities and Man- culture miscelufacturing laneous 1919 3,166 143 156 64 63 113 1,497 545 585 1920 .. _ . . 3,738 243 262 109 82 122 1,753 510 657 1921 2, 475 212 163 90 59 93 1,013 245 600 1922 2,644 175 229 107 85 157 976 270 645 1923 . _ 3,280 361 412 143 74 166 1,049 340 735 1924 3,307 382 463 177 56 238 908 322 761 1925 _ 3,591 373 421 192 52 199 1,036 328 990 1926 4,185 492 380 206 51 239 1,320 320 1,177 1927 4,133 447 383 196 77 285 1,171 368 1,206 1928 4,103 438 353 227 90 227 1,227 360 1,181 1929 4,562 503 387 328 82 256 1,441 379 1,186 1930 3,768 521 409 310 85 186 1,037 223 997 1931 2,182 284 258 154 69 174 515 146 582 1932 1,192 126 121 80 29 86 387 74 289 1933 867 85 52 42 21 35 373 104 155 1934 1,129 122 57 44 30 47 524 115 190 1935 1,258 83 73 48 40 57 552 180 225 1936 1,650 139 108 62 45 92 728 187 289 1937 _ 2,294 188 172 100 39 117 1,053 222 403 1938 Pl, 860 117 182 88 41 P66 817 P182 P367 Preliminary. PUBLIC CONSTRUCTION electric power plant machinery, special military equipment, and ships constructed in navy yards, gov- The estimates are those prepared by Lowell Chawernment expenditures are included in the estimates ner for the Department of Commerce and published for producers' or consumers' equipment, depending in Construction Activity in the United States 1915on the classification of the good in question. They 1937, and in subsequent releases. They have been appear to be small relative to the totals in which they adjusted to exclude special war-time military conare included. struction in the period 1919-1921. Work-relief construction is included. TABLES 2, 3, AND 4 It will be noted that no estimates are given for public expenditures on equipment. For most types RAILROADS of equipment it is impracticable to segregate the For the period 1922-1938 the estimates are derived portion going to governmental agencies. Except for from figures on gross capital expenditures of Class I Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

733 SEPTEMBER 1939 FEDERAL RESERVE BULLETIN TABLE 4 ESTIMATED EXPENDITURES FOR NEW DURABLE PRODUCERS' GOODS EQUIPMENT [In millions of dollars] Commer- Electric Tele- Other Mining Agri- cial and Total Railroads Power phones Transit Utilities and Man- culture miscelufacturing laneous 1919 3,929 231 104 68 60 42 1,624 692 i 1,108 1920 4,589 387 175 94 80 59 1,785 866 i 1,143 1921 2,758 338 113 139 41 44 1,021 311 1751 1922 3 140 259 166 158 66 79 1,193 305 914 1923- 4,622 716 311 175 106 79 1,631 410 1,194 1924 4,343 519 364 208 77 117 1,444 382 1,232 1925 4,598 355 345 193 71 101 1,690 472 1,371 1926_ . 4,941 391 324 198 65 141 1,849 525 1,448 1927 4,644 304 339 201 53 142 1,683 539 1,383 1928 4,743 235 326 230 45 121 1,825 541 1,420 1929 5,595 337 387 287 53 113 2,155 613 1,650 1930 4 572 344 426 302 39 112 1 504 507 1,338 1931 2,941 76 280 254 63 69 920 265 1,014 1932 1,607 38 136 173 32 41 543 117 527 1933 1 504 16 61 129 25 22 619 130 502 1934. _ 2,307 96 69 141 48 26 936 241 750 1935 3,091 83 93 158 77 29 1,255 411 985 1936 4 133 167 143 199 64 43 1,675 542 1,300 1937 . 5,276 337 228 248 62 45 2,069 697 1,590 1938 P3, 611 121 240 230 42 Pl, 240 582 Pl, 120 p Preliminary. 1 Excludes ships built for the Emergency Fleet Corporation. TABLE 5 have been carried back by reference to the movement of Interstate Commerce Commission figures on cap- ESTIMATED EXPENDITURES FOR NEW DURABLE ital expenditures. CONSUMERS' GOODS ELECTRIC POWER [In millions of dollars] The estimates are derived from Department of Plant Equipmem Commerce adjustments of data compiled by the Edison Electric Institute. These adjustments consist of eliminating estimated expenditures for land, Total Buildings Passenas well as expenditures of municipal power plants Total Hous- fo P r ro N f o it n- Total a g u e to r - H h o o u l s d e- included in the Institute's figures.2 ing Institu- mobiles goods tions TELEPHONES The estimates in this case, both as to total ex- 1919 7,448 1,970 1,785 185 5,478 1,668 3,810 penditures and as to split between plant and equip- 1920 8,394 1,948 1,712 236 6,446 2,046 4,400 1921 7,373 2,313 2,016 297 5,060 1,370 3,690 ment, were supplied through the courtesy of the 1922 9,467 3,801 3,414 387 5,666 1,836 3,830 American Telephone and Telegraph Company. They 1923 12, 082 4,821 4,395 426 7,261 2,681 4,580 cover the entire industry. 1924 12, 396 5,229 4,772 457 7,167 2,507 4,660 1925 13, 537 5,750 5, 141 609 7,787 2,747 5,040 1926 14, 045 5,535 4,843 692 8,510 3,150 5,360 TRANSIT 1927 13, 457 5,357 4,645 712 8,100 2,690 5,410 1928 13, 612 5,019 4,355 664 8,593 2,933 5,660 For 1922-1937 the estimates are those of the Tran- 1929 12, 964 3,761 3,193 568 9,203 3,293 5,910 sit Journal. For 1919-1921 expenditures for struc- 1930 9,326 2,291 1,824 467 7,035 2,065 4,970 1931 7,071 1,735 1,379 356 5,336 1,416 3,920 tures have been taken from the Department of Com- 1932 4,057 709 515 194 3,348 788 2,560 merce estimates.3 For equipment, Transit Journal 1933 3,906 458 373 85 3,448 978 2,470 data for 1922 and later years were carried back by 1934 4,913 521 419 102 4,392 1,342 3,050 1935 6,456 913 813 100 5,543 1,993 3,550 reference to street railway cars built, as reported by 1936 8,587 1,536 1,374 162 7,051 2,551 4,500 the American Railway Car Institute.4 1937 9,634 1,908 1,740 168 7,726 2,726 5,000 1938 P7, 630 1,817 1,618 199 P5, 813 1,613 P4, 200 OTHER UTILITIES v Preliminary. These consist of petroleum and gas pipe lines, manufactured and natural gas, telegraphs, and roads, compiled by the Association of American cables. The figures shown are the sum of the De- Railroads. From the figures for way and structures partment of Commerce estimates for these separate (construction) have been deducted purchases of series.5 land as reported by the Interstate Commerce Commission, and to the remainder, as well as to the 2 See Construction Activity in the United States, 1915-1937, p. figures for equipment, has been added a uniform in- 66, and supplements. The Department's estimates eliminate municipal expenditures only in the case of construction. We crement of 5 per cent to allow for capital expenditures have applied the ratios used here to expenditures for machinery of Class II and III railroads and for switching and and equipment. terminal companies. For the years 1919-1921 the As- 3 Op. cit., p. 63. sociation of American Railroad figures thus modified 5 4 S O ta p t . i st c ic it s . , pp o . f 6 C 5 a -6 r 9, B a u n i d ld in s p u pp a le n m d en C t a s. r Repairing. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

734 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 MINING AND MANUFACTURING Experts in this field who have been consulted do not Except for two or three manufacturing industries, accept this as a foregone conclusion, however, since we have no budgetary or accounting data on capital there were improvements in drilling technique that expenditures such as are relied on in the case of accompanied the increase in depth and tended to offrailroads and public utilities. For this reason it has set the increase in average cost that would otherwise been necessary to derive the estimates by a radically have occurred. Certainly for the four years, 1927different method. 1930, covered by the Tariff Commission study no clear Plant trend in average cost is discernible. In the absence of any adequate data to support an estimate of aver- Factories.—Department of Commerce estimates age drilling costs prior to 1927, we have simply ashave been used throughout, with the exception of the sumed, pending further evidence and investigation, a year 1919, which is a tentative figure of our own. constant average of $22,500 for the entire period, and They are derived through various adjustments of have multiplied by this figure the number of oil and data on contracts awarded for factory construction gas wells (including dry holes) drilled each year. as compiled by the F. W. Dodge Corporation.6 The resulting estimates are purely provisional, and Mining development outlays.—Very little statistical it is hoped that they may be improved later on.14 material is available from which to derive estimates The average cost of $22,500 per well used through of mining development expenditures, and any efforts 1930 was scaled down by 1935 to the $18,500 found along this line must of necessity be highly tentative. by the Bureau of Mines study for that year, and was The bulk of these development expenditures con- scaled upward thereafter to $21,000 in 1938, by refsists of the cost of drilling oil and gas wells. Data erence to annual data on the average depth per well, are available on the number of wells drilled each supplemented by indexes of general construction year (including dry holes) for the period covered costs.15 The results leave much to be desired, but may by the present study, and the estimation of the total serve as rough approximations.16 annual expenditure on drilling (exclusive of drilling It will be noted that these estimates cover all drillmachinery, which is covered elsewhere) involves mul- ing costs, other than purchases of drilling machinery, tiplying the number of wells drilled by some figure regardless of whether they are charged to capital acfor the average cost per well. count. This is the only instance throughout the field For 1935 it is possible to derive a fairly reliable of producers' goods in which we have knowingly and figure from a study of drilling costs made by the avoidably included an item widely treated as a cur- Bureau of Mines.7 For all wells drilled in that year rent expense by the accounting practice of the the average cost appears to have been in the vicinity industry concerned. "Intangible" drilling costs, of $18,500.8 For the years 1927-1930 an estimate is which make up generally somewhat over half of the obtainable from data compiled by the United States total, are almost universally expensed for income- Tariff Commission.9 By taking the estimated amount tax purposes, though the trend is said to be toward of "intangible development expenses" plus "amortiza- capitalization for other purposes, largely as a result tion of tangible development expenses" per barrel of of the extension of the life of wells through proration. oil produced (Table 80), applying it to the total That the drilling of a well represents durable concrude production of the United States, and dividing struction can hardly be disputed, since the average by the number of producing oil wells drilled during life of wells is probably between 5 and 10 years. the period, we derive an average cost for producing Construction involving a similar durability and size wells of around $24,000.10 The inclusion of dry holes of outlay would ordinarily be capitalized in any and gas wells brings this figure down to about $22,- 500.u This over-all average appears to be fairly other industry, and we have therefore included well in line with trade estimates for the period.12 "intangible" drilling costs as capital outlays regardless of accounting customs. How the average changed in the period 1919-1926 As for mining development expenses in other lines it is difficult to say. There was probably some inthan petroleum and gas, only two basing points are crease in the average depth per well in this interval, available throughout the entire period, namely those and it might appear therefore that the average expense of drilling was increasing correspondingly.13 provided by the censuses of mines and quarries of 1919 and 1929. The census figures presumably re- 7 6 O O . p . E c . i t. K , i p e . s s 4 li 9 n , g an a d n d su o p t p h l e e r m s, e n T ts e . chnology, Employment, and late to development expenses of the kind customarily Output Per Man in Petroleum and Natural Gas Production, capitalized, hence exclude the very large volume of Table VIII. routine or current development operations which are 8 The Bureau's study covers drilling costs of oil wells and regularly charged to operating expense. The volume dry holes only. The cost of equipping producing wells is included. We have assumed that the average cost of gas wells of these capitalized outlays is relatively small is two-thirds the cost of drilling and equipping oil wells. (around $100 million in 1919, $90 millions in 1929, 9 Production Costs of Crude Petroleum, 72d Congress, First Session, House Document 195. 14 The Census of Mines and Quarries for 1919 shows a total of 10 The cost of dry holes is not included in the expense items development expenses for petroleum and gas wells of only $236 just cited. million, which works out at approximately half of the average 11 It was assumed that the average cost of dry holes bore the of $22,500 per well assumed in the present estimates. It apsame relation to the average for producing oil wells as shown pears, however, that the reporting of drilling costs was very in the Bureau of Mines study for 1935, and that the cost of gas incomplete, many concerns returning only costs charged to capital wells averaged two-thirds the cost of producing oil wells. account. The expensing of "intangible" drilling costs and out- 12 Petroleum Facts and Figures (2d Ed. p. 115) places the lays for dry holes has long been a widespread practice in the average cost in 1928 at $22,540. A 1931 estimate from the same industry. source (4th Ed., p. 88) makes it $22,000. An estimate for the 15 Average well depths were obtained from the Oil Weekly, first half of 1927 by the Oil and Gas Journal is $19,261 (cited January 30, 1939, p. 57. in Petroleum Facts and Figures, 1st Ed., p. 161). 16 We have for the period 1931-1934 a study of oil-producing 13 That the increase in average depth may have been moderate costs by the Petroleum Administrative Board (Report on the Cost is suggested by the fact that the average for 1925 (the first of Producing Crude Petroleum) in which is shown (Table 4) the year for which estimates appear to be available) was the same as average per-barrel cost attributable to "amortization of developfor 1930, and higher than for 1934-1936. Oil Weekly, January 30, ment costs", but the figures on this item are clearly untrust- 1939, p. 57. On the other hand it must be considered that there worthy. Conversation with certain officials intimately acquainted was between 1919 and 1925 some shift in the distribution of with the study discloses an incomplete capitalization of priordrilling activity in favor of areas with deeper wells. Petroleum year drilling expenses for the purpose of computing current Facts and Figures, 5th Ed., p. 206. amortization. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

735 SEPTEMBER 1939 FEDERAL RESERVE BULLETIN less than one-fifth of the expenditures in those years their allocation in toto to mining and manufacturing for the drilling of oil and gas wells). No satisfactory or a "split" in the form of a partial allocation. There series appears to be available for interpolating the is probably a significant volume of machinery and movement of development costs between the census equipment destined for use in this field which is conyears, or for extrapolating beyond 1929. In lieu of cealed in census categories of too broad or catchanything better, the interpolations and extrapolations all a character to permit of identification. Morehave been accomplished by reference to the move- over, there are other categories, most notably in the ments of expenditures for factory construction. field of electrical machinery and equipment, that clearly contain items going into mining and manu- Equipment facturing use, but for which no satisfactory basis for a "split" appears to exist. It seems certain, The various steps in the process of estimation may therefore, that the figures compiled by the procedure be outlined briefly as follows: described above must reflect a fairly sizeable under- 1. From the various censuses of manufactures, tabulation, the magnitude of which, unfortunately, beginning with the census of 1925, we tabulated all we can only guess. items of finished machinery and equipment used Probably an even more important deficiency lies entirely, or almost entirely, in mining and manu- in the omission of machinery and equipment asfacturing.17 To the value of such items we added sembled or produced in the establishment using it. such fractions of the value of items used both in If it is purchased in parts and put together on the mining and manufacturing and elsewhere as wepremises of the buyer, it is likely not to appear in allocated to mining and manufacturing.18 For census the census as a finished good, in which case it is not years prior to 1925 the series thus obtained was ex- included in our tabulation. If it is built in the user's trapolated by reference to the movement of theown shops, it likewise slips through the net. Moreaggregate of a list of items selected from Kuznets' over, the method fails to catch overhaulings and retabulation of producers' machinery and equipment.19 newals of old machinery chargeable to capital 2. Interpolations for inter-censal years were made account. by reference to the movement of Kuznets' estimates There appears no way of estimating satisfactorily for "industrial machinery and equipment."20 the total deficiency arising from undertabulation of 3. The series derived after these interpolations completed units sold to mining and manufacturing was then adjusted for imports and exports of mining concerns and from the production and assembly of and manufacturing machinery and equipment as machinery and equipment within the consuming tabulated from detailed foreign trade statistics pub- establishments. Certainly it is known that in the lished by the Department of Commerce, thus giving case of many large manufacturing organizations the the volume of machinery and equipment destined for proportion of machinery and equipment produced the domestic market, at producers' prices.21 internally is very sizeable, though less so for small 4. The next step was to raise the values obtained establishments. Experts connected with the maunder (3) to allow for transportation costs and dis- chinery industry, with whom we have consulted, have tributive margins between producer and consumer. expressed the opinion that as much as 15 or 20 per The allowance in this case was derived from Kuznets' cent of the total charges to the machinery and equipestimates of the total spread between producer and ment account in mining and manufacturing may be consumer in 1929 for various categories of machinery attributable to assembly and production in the and equipment.22 An appropriate weighting of the using plants. This is of course a mere guess. In any relevant items in Kuznets' table resulted in the de- event in raising the estimates as obtained in step cision to raise the value of mining and manufacturing (4) enumerated above, we have made a flat allowmachinery at producers' prices by 12^ per cent. ance of 25 per cent, of which some 10 per cent is This ratio of increase was applied uniformly through- for undertabulation and the remainder for producout the period. tion within the consuming establishments. This is, 5. The results obtained under (4) were raised obviously, a purely provisional solution of the probfurther by an arbitrary allowance for undertabula- lem. It is hoped that eventually a better basis for tion and for equipment produced within the establish- this adjustment can be found. ment using it (hence not included in the census data). This last adjustment deserves special discussion. AGRICULTURE Let us consider first the matter of undertabula- Plant tion. It is obvious that we can tabulate only finished machinery and equipment included by the census The term construction as it pertains to agriculture in classifications sufficiently specific to permit either includes production buildings, wells, windmills, fences, and similar fixed improvements to farm real 17 As noted in the introduction, the tabulation is exclusive of estate. The estimates shown here were prepared by parts and accessories, small tools, durable shop supplies, and the Bureau of Agricultural Economics. They are sim 18 il T a h r e it f e r m ac s t io p n re s va o il f i n s g u l c y h c " h s a p r l g i e t" d i t t o em c s u r a re ll n o t c a e te x d p e t n o se m . ining and provisional and subject to change.23 Equipment misceuaiicuut) , IU wtis pussiuie LU aujusi Lilt: uivisiuii Ui SUCH lttiiris between the two classifications for other years than 1929 (the This series includes farm machinery of all kinds, "base" year for determining the split) by reference to the rela- tractors, and trucks. As presented here it does not tiv 1 e 9 C m o o m v m em od en it t y s F of lo t w h e a n ag d g C re a g jn at tc e d s F o o f r " m s a tr ti a o i n g , h t T " a o b r l e e x 1- c 4 lu , s p iv p e . 8 it 9 e , m f s f . . include any passenger automobiles even though these 20 The same, Table II-3, p. 137. 21 Only 80 per cent of the net balance as tabulated was used, a 23 It should be noted that the Bureau's estimates cover repair deduction of 20 per cent being an allowance for parts and acces- expenditures as well as outlays on new construction. The latter sories included in the items tabulated from the trade statistics. are not available separately. The inclusion of minor repairs of The adjustment for imports and exports of motor trucks was the kind charged to current expense under ordinary accounting made on the basis of data published in Automobile Facts and rules results in somewhat too high a level for the estimates as Figures. compared with the estimates for other types of business con- 22 The same, Table III-5, p. 213. struction. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

736 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 are widely used by farmers for business purposes. Equipment The estimates, like those for farm construction, represent the work of the Bureau of Agricultural Eco- Automobiles.—Prior to 1925 there are available nomics, and are also tentative.24 only figures on factory sales of passenger cars in the domestic market. To obtain from these figures COMMERCIAL AND MISCELLANEOUS estimates for retail sales it is necessary to make This is a catch-all category intended to embrace allowance for changes in dealer inventories year by all types of private enterprise other than railroads, year. In the absence of significant statistical matepublic utilities, agriculture and mining and manu- rial on this point, the estimates used had to be very facturing. Some of the principal components are largely guesses, the basis for which need not be elabmerchandising, the service industries, and common- orated. Beginning with 1925 and extending through carrier and contract transportation by highway 1929, the estimates rest on Polk's compilation of and water. new car registrations in the United States, adjusted for undertabulation in accordance with a schedule Plant prepared by Mr. O. P. Pearson of the Automobile This consists of commercial and miscellaneous Manufacturers' Association. For the period beginbusiness buildings, for which the estimates of thening 1930 they rest on a tabulation of retail sales Department of Commerce, based on Dodge Corpora- prepared by the Automobile Manufacturers' Association statistics, have been used.25 tion.29 The estimates derived from these sources were in Equipment terms of the number of units sold annually at retail The problem of estimation in this case is very in the domestic market. To convert these unit figsimilar to that encountered in the case of mining and ures into value the following procedure was adopted. manufacturing machinery, already discussed. The From Automobile Facts and Figures we obtained the procedure in general has been similar, hence it is un- average wholesale value of passenger cars sold in the necessary to repeat the description, and we shall com- American market each year. This wholesale value ment only on a few minor points of difference. was then raised to allow for the transportation and 1. Interpolations for inter-censal years (see (2)distributive margin worked out by Kuznets for the under mining and manufacturing above) were de- year 1929.30 It is known that this margin has varied rived from the movement of a total composed of somewhat from year to year and over a period of minor groups 35, 36, and 38-41 in Table II-3 of Com-years, but there appears no reliable means of estimodity Flow and Capital Formation, p. 137. mating the variation, hence the use of the 1929 ratio 2. The allowance for transportation costs and dis-throughout. Here again it is hoped that the estitributive margins between producer and consumer mates may be improved by further revision. was obtained by a weighted combination of Kuznets' Household durable goods.—This category emdetailed estimates for 1929 as shown in Commoditybraces, so far as it is practicable to segregate them, Flow and Capital Formation, Table III-5, p. 213. It all consumers' durable goods other than automobiles. turned out to be about 17 ^ per cent of the producer For the period 1919-1933 the estimates were derived value, and was applied uniformly throughout the by adjustments of Kuznets' figures on consumers' period covered by the estimates. durable goods, as follows. From the value of con- 3. The allowance for undertabulation and produc-sumers' durable goods destined for domestic contion of machinery and equipment within the using sumption, at producers' prices, the items for pasestablishments is 10 per cent instead of the 25 persenger cars and auto parts and accessories were cent used in the case of mining and manufacturing. subtracted, leaving household durables, as here de- This lower margin is in recognition of the prob- fined, destined for domestic consumption.31 To obtain ability that production by users is relatively small the value of these goods at retail it was necessary in this field. to add the estimates for the transportation and dis- Plant tributive margin for consumers' durables as a whole,32 TABLE 5 minus that portion of the margin attributable to Housing.—For non-farm housing (not shown sepautomobiles and auto parts and accessories, and then arately) the estimates are based on the study of to make adjustments for changes in distributive in- David L. Wickens and Ray Foster for the National Bureau of Economic Research.26 The series developed ventories of the goods in question. This adjustment for inventory changes followed in that study, as continued since 1936 by Mr. Foster, no set formula and its derivation is difficult to dehas been converted from a projects-started to an scribe except by saying that it represents a series of expenditure basis, and to it have been added estimates for major alterations, additions, and repairs guesses which appeared to us, all things considered, of the kind requiring a building permit. The esti- to give results as nearly as possible in harmony with mates for farm housing are those of the bureau of the lines of evidence available. Agricultural Economics.27 For the period since 1933 the estimates just de- Buildings for non-profit institutions.—The esti- scribed were extrapolated by reference to the movemates shown from 1920-1938 are those of the Depart- ment of a compilation of household durable goods ment of Commerce. They cover religious, memorial, from the censuses of manufactures for 1933,1935, and educational, social, recreational, hospital, and other 1937, adjusted for imports and exports and for estiinstitutional construction that is privately financed/*"mated change in distributive inventories. The interpolations for the inter-censal years 1934 and 1936 24 Except for trucks, the estimates include "parts and acces- were derived from various data that need not be sories", though not repair expenditures other than for parts. described here. 25 Construction Activity in the United States, 1935-1937, p. 48, and supplements. 26 Bulletin 65, Non-Farm Residential Construction 1920-1936. 9 Automobile Facts and Figures, 1939, p. 7. 27 The Bureau's estimates include all repairs. » Commodity Flow and Capital Formation Table III-5, p. 213. 28 Construction Activity in the United States, 1915-1937, pp -1 Op. cit., Table II-5, p. 147. 50-56, and supplements. •2 Op. cit., Table V-6, p. 307. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

737 SEPTEMBER 1939 FEDERAL RESERVE BULLETIN NEW GERMAN REICHSBANK LAW The text of a new law governing the Ger-and the other members of the Managing Board. He shall determine the duration of their term of office. man Reichsbank is published below in trans- (2) Salaries, fees for attendance, pensions, and lation. This law supplants that of August payments to beneficiaries of the President of the German Reichsbank and the other members of the 30, 1924, published in the FEDERAL RESERVE Managing Board of the Reichsbank shall be fixed BULLETIN for November 1924, and amend- by contract with the German Reichsbank. The contract requires the approval of the Fuhrer and ments thereto. The principal changes relate Chancellor of the Reich. to management, share ownership, distribu- (3) The Fuhrer and Chancellor of the Reich may tion of dividends, reserve requirements, and at any time recall the President of the German Reichsbank and the other members of the Managing power of the Reichsbank to buy and sell Board without prejudice to their contractual rights. Treasury bills and other Government secur- Section 5 ities. (1) The German Reichsbank shall be represented by the Managing Board in all judicial and extra- LAW CONCERNING THE GERMAN REICHSBANK judicial proceedings. June 15, 1939. (2) Declarations shall be binding on the German The German Reichsbank, as the German bank of Reichsbank when made by two members of the Manissue, shall be subject to the unrestricted sovereignty aging Board; they may also be made by representaof the Reich. Within the scope of the duties entrusted tives designated by the Managing Board. to it, it shall serve to realize the aims set up by the (3) The directorates of the independent branch National Socialist State, especially the safeguarding establishments (principal branches and branches of of the German currency. the Reichsbank) shall represent the German Reichs- In order to define the legal status of the Reichsbank bank in judicial and extra judicial proceedings within created by the banking law of March 14, 1875 the business district of the branch establishment (Reichsgesetzblatt p. 177), the Reich Government has under their direction. Declarations made by the enacted the following law which is promulgated here- independent branch establishments shall be binding with : on the German Reichsbank when made by two members of the directorate or their representatives. Any I. LEGAL FORM AND DUTIES complaints against the German Reichsbank referring to the conduct of such a branch establishment, may Section 1 be made before the court competent in the juris- (1) The German Reichsbank shall be responsible diction where the branch is situated. directly to the Fuhrer and Chancellor of the Reich. (4) If a deposition (Willenserklarung) to the (2) It shall be a corporate body of the public German Reichsbank is to be made, it is sufficient interest with its seat in Berlin. It may maintain to make it to an authorized representative. branch establishments. Section 6 Section 2 (1) The President of the German Reichsbank shall The duties of the German Reichsbank result from appoint an Advisory Committee within the Managing its position as bank of issue of the Reich. It shall Board, of which he shall be the Chairman. He shall have the exclusive right to issue notes. It shall appoint a permanent representative from the memfurther regulate the system of money and payments bers of the Advisory Committee. within Germany and the transfers with foreign (2) The President of the German Reichsbank may countries, as well as provide for the utilization of appoint subcommittees of the Advisory Committee the available means of payment of the German for certain departments of activity and may entrust economy in the public interest and in conformity individual members of the Advisory Committee with with the economic system. specified duties. (3) Local committees may be formed in the branch II. DIRECTION AND ADMINISTRATION establishments. (4) The members of the Advisory Committee and Section 3 the local committees shall serve without remunera- (1) The German Reichsbank shall be directed and tion. administered by the President of the German Reichs- Section 7 bank and the other members of the Managing Board in accordance with instructions from the Fuhrer (1) The President of the German Reichsbank shall and Chancellor of the Reich and under his super- appoint the employees of the bank. At the time of vision. the appointment of these employees the representa- (2) The President of the German Reichsbank shall tive of the Fuhrer or the office named by him shall have the deciding vote in the Managing Board. be consulted regarding the regulations applying to Government employees. Section 4 (2) The employees of the Reichsbank are indirect employees of the Reich. Their legal status shall be (1) The Fuhrer and Chancellor of the Reich shall governed by the regulations for employees to be appoint the President of the German Reichsbank issued by the President of the German Reichsbank, which shall take into consideration the specific needs NOTE: This law was published in the Reichsgesetzblatt, Part I, June 16, 1939, No. 107. of an orderly and efficient banking business. The Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

738 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 regulations are to be approved by the Reich Govern- enterprises which have their headquarters within ment. the area wherein this law is valid. (3) The employees of the Reichsbank are subject (3) The owner of a share must, on demand by to the penal code of the Reich. The President of the the German Reichsbank and within a period specified German Reichsbank shall be the supreme authority by it, prove that he is entitled to hold shares accordover the employees of the German Reichsbank. ing to (2) above. The Managing Board of the Reichsbank shall decide without recourse to legal steps Section 8 whether or not proof has been given. (1) The President of the German Reichsbank shall (4) The statutes (section 27) may provide for issue the regulations concerning salaries, fees for the issue of stock certificates; they may be transattendance, pensions, and payments to beneficiaries ferred by endorsement. The form of endorsement, as well as salary increases of the employees of the the proof of identity of the bearer, and his obligation Reichsbank. These regulations require the approval of surrender are governed by articles 12, 13, 14 (2), of the Reich Government. and article 16 of the negotiable instruments law, (2) The President of the German Reichsbank, in mutatis mutandis. individual cases according to the requirements of Section 12 the German Reichsbank, may grant special remunerations for special services; the total amount of these (1) The general meeting shall represent the shareremunerations may not exceed one-tenth of the en- holders. tire payroll for the employees of the Reichsbank. (2) The annual balance sheet and the report on the administration of the Bank shall be presented to Section 9 the general meeting. On the proposal of the President of the German Reichsbank, it shall decide on The President of the German Reichsbank may emthe increase of the capital stock. ploy notarial officers (Urkundsbeamte) at the German Reichsbank and its branch establishments. They must have the qualifications for appointment as judge IV. SPHERE OF ACTIVITY OF THE GERMAN REICHSBANK and carry an official seal. They may attend to all Section 13 business matters of the German Reichsbank which belong to the office of a notary. Authorization to (1) The German Reichsbank shall be authorized represent the German Reichsbank may be evidenced to conduct the following transactions: by a certification of a notary of the German Reichs- 1. Buy and sell bills and checks in respect of bank. which three endorsers of known solvency are re- Section 10 sponsible. Bills must be due within three months from the date of purchase; they must be good com- (1) The members of the Managing Board of the mercial bills; Reichsbank, all persons occupied in the service of the The requirement of the third endorsement may German Reichsbank, as well as the members of its be dispensed with if the bill or check is secured Advisory Committee and the members of the local by collateral or in some other manner; committees, shall be bound to observe secrecy as to 2. Buy and sell Treasury bills issued by the all matters and arrangements of the Bank which Reich which must be due within three months from come to their knowledge, and especially as to all the date of purchase. The Fiihrer and Chancellor transactions of the Bank and as to the extent of of the Reich shall determine the maximum amount credits granted, even after their connection with which the German Reichsbank may hold by virtue the Bank shall have been terminated. of this provision and on which it may make ad- (2) Without the consent of the President of the vances in accordance with 5(c) below; German Reichsbank they shall not make any depo- 3. In order to regulate the money market, buy sitions regarding such matters or give evidence and sell fixed interest-bearing securities which are either in court or out of court. Permission to testify admitted to official trading on the stock exchanges, as a witness may be refused pnly if the testimony as well as Treasury bills which are due within one would prove prejudicial to the interests of the Reich, year from the date of purchase; would seriously endanger the performance of public 4. Buy and sell gold and foreign exchange; services or would render it considerably more diffi- 5. Grant loans at interest for not more than cult. Permission to make a deposition may be with- three months on collateral (Lombard loans), i.e., held if the deposition would otherwise prove detri- a) on gold up to the amount of the purchase mental to the service. price (section 14), (3) Paragraph 96 of the criminal code shall apply b) on bills, which meet the requirements of 1 to the German Reichsbank with the proviso that th^ above, at a maximum of 9/10 of their nominal supreme authority in the sense of this provision shall value, be the President of the German Reichsbank. c) on Treasury bills issued by the Reich which meet the requirements of 2 above, at a maximum III. CAPITAL STOCK AND SHAREHOLDERS of 9/10 of their nominal value, d) on fixed interest-bearing securities desig- Section 11 nated by the Managing Board of the Reichsbank, (1) The capital stock of the German Reichsbank on Treasury bills of the Reich or a German provamounts to RM 150,000,000. It is divided into shares. ince, which mature within one year from the The shareholders shall not personally be responsible date of the loan—either individually designated for the liabilities of the German Reichsbank. securities or a part of a block of securities held (2) Shares of the German Reichsbank may be at one of the large security deposit banks—as owned only by German citizens who, on the basis of well as claims against the German Treasury at their racial origin, fulfill the requirements for acqui- a maximum of three-fourths of their market sition of citizenship, as well as corporate bodies and value, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

739 SEPTEMBER 1939 FEDERAL RESERVE BULLETIN If there is no listed quotation on the stock ex- (2) The German Reichsbank may further grant change for values of this sort, the Managing working credits to the German Postal Service and Board of the Reichsbank shall fix the loan value the German Railways up to a combined maximum of the collateral according to the liquidation amount of RM 200,000,000 for the two organizations. value, In this cape, at the request of the German Reichsbank, e) on merchandise stored in Germany or docu- the provision in section 15 (2) shall be applied ments representing it at a maximum of 2/3 of its mutatis mutandis. value. Section 17 If the debtor of such a collateral loan is in default, the German Reichsbank shall be authorized, The German Reichsbank shall be authorized to without having previously obtained judicial au- acquire and dispose of stocks and bonds of the Gerthorization or assistance, to cause the pledged man Gold Discount Bank and stocks of the Bank article to be sold publicly by one of its officials or for International Settlements and to guarantee the by an authorized auctioneer or, if the pledged subscription to such stocks. article has a stock exchange or market price, to cause the sale to be made even privately by one Section 18 of these officials or a broker at the current price, (1) Transactions other than those provided for and from the proceeds to reimburse itself for costs, in sections 13 to 17 shall be undertaken by the Gerinterest, and capital. The German Reichsbank man Reichsbank only for administrative purposes or shall reserve this right also as between itself and for the execution or liquidation of permissible operaother creditors of the debtor as well as between tions. itself and the debtor's estate in bankruptcy. (2) The German Reichsbank is forbidden to accept 6. To accept non-interest-bearing funds in clearbills of exchange. ing accounts or as deposits—in exceptional cases also interest-bearing funds; Section 19 7. To receive for safekeeping and in trust valu- (1) If the German Reichsbank certifies a check ables, especially securities. The German Reichsdrawn on it, it shall become liable to the bearer for bank shall have the status of a depositary of sepayment; it shall also become liable for payment to curities. the maker and the endorser. 8. For account of others, after receiving cover (2) The German Reichsbank shall be authorized in advance, to certify checks only after previous coverage. a) to conduct banking transactions, (3) Payment of the certified check may not be b) to buy and sell precious metals. refused even if in the meantime proceedings in bankruptcy have been instituted against the estate of (2) The Managing Board of the Reichsbank shall the maker. make public the interest rates which will apply in (4) Liability arising from certification expires if the transactions of the German Reichsbank. the check has not been presented for payment eight days after date of drawing. The provisions of article Section 14 40 of the law concerning checks shall apply in regard to proof of presentation. (1) The German Reichsbank shall be under obli- (5) Claims arising from certification shall become gation to buy gold bars at its head office in Berlin outlawed two years after expiration of the time for at the fixed price of RM 2,784 per kilogram fine. It presentation. shall be authorized to have the gold assayed and refined at the cost of the seller. (6) For the legal enforcement of claims based on certification, the provisions for competence and (2) The German Reichsbank shall sell for cash methods of procedure regarding bills of exchange from its available holdings gold bars at the price shall apply. of RM 2,790 per kilogram fine, if their use for (7) Certification shall not involve any obligation economically justifiable purposes appears to warto pay the bill stamp or any other fee. rant it. Section 15 V. NOTE ISSUE, NOTE COVER, AND STATEMENT (1) The German Reichsbank shall be under obli- Section 20 gation to conduct all banking transactions for the Government in sp far as they fall within its scope (1) Reichsbank notes shall be the only unrestricted in accordance with the present law, as well as to legal tender, except gold coins of the Reich. negotiate all payments between the treasuries of the (2) Reichsbank notes shall be denominated in Reich, the districts of the Reich, the States, the Reichsmarks. Reichsbank notes for amounts smaller communities, and the communal associations. For than ten Reichsmarks may be issued only by agreethese services it shall not charge the Reich for costs ment with the Government. and fees. (2) The Reich shall entrust the German Reichs- Section 21 bank with all its banking transactions affecting the (1) Note circulation of the German Reichsbank general administration of the Reich. The Reich shall must at all times be covered by its holdings of: issue loans and treasury bills primarily through the German Reichsbank. Bills of exchange and checks in accordance with section 13, 1, Section 16 Treasury bills of the Reich in accordance with (1) The German Reichsbank may grant to the section 13, 2, Reich working credits, the maximum amount of which Securities in accordance with section 13, 3, shall be determined by the Fiihrer and Chancellor Funds at call based on Lombard loans in accordof the Reich. ance with section 13, 5. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

740 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 (2) Gold and foreign exchange holdings shall be VI. YEARLY BALANCE AND DISTRIBUTION OF PROFITS kept by the German Reichsbank at such a level as is Section 24 deemed necessary in order to settle balances with foreign countries and maintain the value of the (1) The Managing Board of the German Reichscurrency. bank shall draw up the annual balance sheet. (3) Gold and foreign exchange holdings, which (2) Ten per cent of the annual net profit shall are at the disposal of the German Reichsbank at any be carried to a reserve fund until this reserve reaches time, shall be admitted as note cover in addition to the amount of the capital stock. This legal rethe cover mentioned under (1) above. Gold in the serve may be used only as compensation for depresense of this provision means the gold coins of the ciation and as cover for other losses. The use of the Reich, calculated at their face value, furthermore legal reserve does not preclude the existence of free gold bars and other gold coin, calculated at RM 2,784 reserves, designated for compensation of depreciation per kilogram fine. Foreign exchange holdings in and as cover for other losses. the sense of this provision means current foreign (3) Stockholders shall receive a dividend of 5 per moneys with the exception of subsidiary coin, foreign cent out of the remaining net profit. Any surplus bills and checks denominated in foreign currency shall be turned over to the Reich. and payable abroad in accordance with section 13, i, as well as funds on call payable in foreign currency VII. PENALTIES at a bank of known solvency in a foreign financial Section 25 center. (1) A penalty of imprisonment and a fine of un- Section 22 limited amount, or either of these penalties—in case of negligence, imprisonment or a fine—shall be im- (1) The German Reichsbank shall make compensaposed on: tion for damaged notes, if the bearer can produce either a part of the note larger than half of it or 1. Any person who without authorization issues produces evidence that the rest of the note, of which or uses for payment moneys (stamps, coins, notes he presents only half or a smaller portion, has been or other documents which are capable of being destroyed. The Managing Board of the Reichsbank used in monetary transactions instead of the legally shall decide without recourse to legal steps whether issued coin or notes), even if their value is not sufficient proof has been given. expressed in Reich currency, or who issues or uses (2) The calling and withdrawal of notes shall be for payment noninterest-bearing bearer bonds; effected by the Managing Board of the Reichsbank, 2. Any person who uses for domestic payments which shall issue further regulations for the purpose. moneys issues abroad which are denominated ex- These regulations shall be published. clusively in Reich currency or in Reich currency (3) Notes which are called in shall be invalid combined with other denominations. after the time limit set by the Managing Board of the (2) Attempts at such action shall be liable to Reichsbank. penalty. (4) The German Reichsbank shall not be required (3) In addition to the penalty the objects in conto make compensation for destroyed, lost, or invalid nection with which punishable action is committed notes. may be confiscated. If no specific person can be Section 23 prosecuted and sentenced, the confiscation may take place independently, provided the given premises (1) The German Reichsbank shall publish regu- warrant such action. larly the position of its assets and liabilities. Section 26 (2) The statement shall show: (1) The members of the Managing Board of the 1. Under liabilities: Reichsbank shall be punishable with a fine or with Capital stock, imprisonment: Reserves and provision for bad debts, Note circulation, 1. If they intentionally misrepresent or make Demand deposits, equivocal statements regarding the position of the Time deposits, Reichsbank in the balance sheet published in ac- Other liabilities; cordance with section 23; 2. If they intentionally direct or permit the 2. Under assets: German Reichsbank to issue notes in excess of the Gold and foreign exchange holdings, eligible authorized amount. as note cover; (2) Criminal proceedings shall be entered at the Holdings of: order of the Fiihrer and Chancellor of the Reich. Bills, checks, and Treasury bills of the Reich, VIII. FINAL AND TRANSITORY PROVISIONS Securities acquired in accordance with Section 27 section 13, 3, Lombard loans, (1) The President of the German Reichsbank shall German subsidiary coin, issue the statutes. The statutes and their amend- Rentenbank notes, ments shall be published. Other securities, (2) The statutes shall make provisions regard- Other assets. ing: (3) In addition there must be a statement show- 1. The organization of branch establishments; ing any conditional liabilities in respect of redis- 2. The Advisory Committee of the German counted bills of exchange payable in Germany. Reichsbank and local committees; Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

741 SEPTEMBER 1939 FEDERAL RESERVE BULLETIN 3. The shares of the capital stock of the Ger- Reichsbank by April 30, 1940. If a share certificate man Reichsbank, their transfer or pledging; has been destroyed or lost, it shall be sufficient, in- 4. The issue and form of stock certificates and stead of depositing it, to prove that the loss has been their appurtenant dividend and renewal coupons, publicly advertised. the public notice to be given in case of the loss or (2) Every stockholder shall prove at the time of destruction of share certificates and the annul- deposit or the latest on April 30, 1940, that he is ment thereof, and the procedure in case of loss entitled to hold Reichsbank shares (section 11 (2)). of dividend or renewal coupons; Stockholders, whose names have not been entered on 5. The general meeting, especially regulations the stock register of the German Reichsbank, shall concerning the exercise of the voting right and request that they be entered by April 30, 1940, and order of business; they shall furnish any legal proofs deemed requisite 6. The business year, the closing of the books, by the German Reichsbank. The German Reichsand the annual report; bank shall not be liable for the reexamination of 7. The verification of the accounts and the pro- such legal proofs. cedure to be followed in this verification; (3) Without resort to legal steps the Managing 8. Payment of dividends. Board of the German Reichsbank shall decide whether (3) Until the President of the German Reichs- or not the requisite proofs in paragraph (2) above bank shall issue the statutes, the existing statutes have been furnished. The Managing Board may shall remain in force in so far as the provisions of grant an extension of time for furnishing these this law do not contradict them. proofs. (4) Reichsbank stock certificates, which have not been deposited within the time limit set according Section 28 to paragraph (1) above or for which the holders have (1) The Managing Board of the Reichsbank and not furnished proof within the time limit set, may the committees of the branch establishments of the on behalf of the Reichsbank be declared invalid, to- German Reichsbank shall have the status of au- gether with their appurtenant stubs and dividend thorities of the Reich. coupons, in a public notice by the Managing Board. (2) Within the sphere of activity of the German The shares shall be re-issued. Reichsbank the Managing Board shall have the (5) Further regulations for the execution of this status of the highest authority of the Reich. provision shall be issued by the Managing Board of (3) Provisions regarding the liability of the the Reichsbank. Reich toward its employees shall apply mutatis (6) The German Reichsbank shall grant an inmutandis to the German Reichsbank. demnification for the shares declared invalid. It shall grant further an indemnification for the altera- Section 29 tion of distribution of profits. (7) The indemnifications are definitely fixed by In case of public announcements made by the the general meeting upon the recommendation of German Reichsbank, a single insertion in the German the Managing Board of the Reichsbank. Reichsanzeiger and in the Prussian Staatsanzeiger shall be sufficient. The announcement shall be in Section 34 force as soon as the issues of the German Reichsanzeiger and of the Prussian Staatsanzeiger containing (1) The terms of service of the members of the it have appeared in Berlin. Managing Board of the Reichsbank, who are in office at the date of effectiveness of this law, shall be governed bv the former regulations. Section 30 (2) Until the issue of regulations for employees Shares of the German Reichsbank shall be ad- in accordance with section 7 and of provisions mitted to trading on every stock exchange. In order concerning salaries, attendance fees, pensions, and to list these share on the exchange, a description payments to beneficiaries of employees of the Reichsof them must be furnished to the management of the bank in accordance with section 8, the former prostock exchange; the publication of a prospectus visions shall remain in effect. shall not be necessary. (3) Employees of the Reichsbank, who heretofore have had more extensive privileges than this Section 31 law and the regulations to be issued under section 7(2) will grant to them, shall retain these privileges. (1) The German Reichsbank enjoys the same privileges as the Reich concerning matters of build- Section 35 ing, residence, and renting. (2) Provisions regarding participation in Cham- No fee shall be charged for changing the name bers of Industry and Commerce shall not apply to the "Reichsbank" into "Deutsche Reichsbank" in the German Reichsbank. land register. Section 36 Section 32 The following shall cease to be in force: The German Rentenbank shall not increase the amount of its notes in circulation. The Rentenbank The banking law of August 30, 1924 (Reichsnotes shall be withdrawn in accordance with special gesetzblatt II, p. 235), including the laws constiregulations. tuting amendments thereto, Section 1 of the law amending the banking law Section 33 of March 19, 1924 (Reichsgresetzblatt II, p. 73), (1) Stock certificates in existence when this law The regulation of the Federal Council concerncomes into force together with their renewal and ing certification of checks by the Reichsbank of dividend coupons shall be deposited at the German August 31, 1916 (Reichsgesetzblatt p. 985), and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

742 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 article 6 of the introductory law to the law regard- Section 37 ing checks of August 14, 1933 (Reichsgesetzblatt I, (1) This law shall take effect upon its publicap. 605), tion, and the regulation concerning distribution of The law concerning the issue and redemption of profits (section 24) shall be retroactive for the busiemergency currency of July 17,1922 (Reichsgesetzness year 1938. blatt I, p. 693), and Chapter IX of the Third Regu- (2) The provisions of paragraph (2) of section 11 lation of the President of the Reich for the Safeshall not preclude the right of participation in the guarding of the Economy and the Finances of general meeting which determines the indemnifica- October 6, 1931 (Reichsgesetzblatt I, pp. 537, 562), tions mentioned in section 33. including the further regulations issued in connection with it. Berchtesgaden, June 15, 1939. CUBAN MONETARY LEGISLATION A number of monetary measures have been a monetary provision which might be obtained by enacted in Cuba in recent months. One group requiring every exporter from Cuba to deposit American currency in a bank of the United States of of measures relates to the establishment of America, to the extent of a certain percentage of a stabilization fund. The other group pro- the price received for the products exported, such vides for the settlement in pesos of certain percentage to be immediately reimbursed at par, with obligations contracted in United States dol- an equal amount in Cuban currency. lars and contains provisions designed to pre- WHEREAS: The exchange at par of the two currencies will not represent a loss to exporters in Cuba, vent speculative changes in exchange rates since as soon as the system commences to operate the and in the prices of goods and securities. premium will begin to decrease, and should any pre- Translations of these measures are published mium be found to persist in favor of the currency of below. Summaries and texts of other mone- the United States of America, the Cuban exporter's loss thereby would be compensated by the notable tary measures enacted in Cuba in recent improvement in foreign exchange conditions. years were published in the FEDERAL RESERVE THEREFORE: In use of the powers with which I am BULLETIN for September 1938, pages 768- vested, and on proposal of the Secretary of the Treas- 769, October 1934, pages 660-661, and July ury, 1934, pages 468-471. I RESOLVE: FIRST: The National Currency Stabilization Fund is hereby established, to be made up of currency of MEASURES RELATING TO STABILIZATION FUND the United States of America obtained in accordance DECREE NO. 1358* with the provisions of this decree. SECOND : The National Currency Stabilization Fund WHEREAS: The Economic Defense Law of October shall be deposited in a bank of the United States of 29, 1914, provides in Article X that "only national America which the Secretary of the Treasury shall currency and that of the United States of America select, in the manner he may deem suitable. shall be legal tender for the payment of obligations," THIRD: Every sugar exporter shall deliver to the and all subsequent legislation and provisions supple- Government of the Republic, in currency of the mentary thereto serve to ratify and clarify that orig- United States of America, 20 per cent of the f. o. b. inal intention of the Legislature to cause both curren- price in warehouse at the port of shipment, of sugars cies, that is, the national currency and that of the and syrups exported by him. Exporters of other United States of America, to circulate and be accepted products shall deliver to the Government, in the same without distinction, for which reason it is the duty of currency, a sum equal to 10 per cent of the price of the Government of the Republic to prevent the break- their exports, f. o. b. port of shipment. ing of the parity which for a long period existed be- FOURTH: Delivery shall be made at the bank that tween these currencies, especially if, as is now the the Government shall designate and within three days case, the depreciation of the Cuban currency is not following that on which the exporter receives the the natural result of the free working of the law of price or it is credited to his account. supply and demand but is a phenomenon produced FIFTH : In payment of the amounts that the Cuban artificially by profit and speculation. Government receives from exporters in accordance WHEREAS: In the laws governing Joans and in the with the preceding sections, the General Treasury of bond issues of the debt of the Republic there has been the Republic, simultaneously, shall proceed to deliver invariably included the obligation that payments be to them an equal amount in Cuban currency. made in currency of the United States of America, SIXTH : The National Currency Stabilization Fund which compels the Cuban Government periodically to shall be made up of: make the necessary provision of such currency and affords speculators a pretext for increasing the rate (a) Currency of the United States of America obof exchange by an exaggerated premium, to the prej- tained as a result of the exchange provided for udice of the national currency. in this Decree. WHEREAS: The aforesaid premium would tend to (b) Currency of that country collected by the Condecrease as soon as the Cuban State could have at sular Offices of the Republic; and its disposal in the United States of America the neces- (c) Currency of the United States of America sary amount of currency of that country to meet, which the Cuban Government may otherwise when due, the payment of service on its Foreign Debt, acquire. 1 This Decree was published in the Official Gazette of the SEVENTH: The National Currency Stabilization Republic of Cuba dated June 15, 1939. Fund shall have as its chief function the payment of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

743 SEPTEMBER 1939 FEDERAL RESERVE BULLETIN the obligations of the Foreign Debt of the Republic, rency Stabilization Fund" and the Commission enprovided that the amounts of said Fund which are trusted with the administration of said Fund. not needed for such payments shall be used, so far as WHEREAS: Pursuant to the provisions of said possible, for the regulation of foreign exchange. Decree, the National Treasury of the Republic is EIGHTH: The Secretary of the Treasury is author- required to enforce the resolutions of said Commisized to make use of any fund of the Treasury in order sion, and therefore it becomes necessary to establish to effect the exchanges regulated by this Decree. a special service therefor. NINTH : The Administration of the National Cur- THEREFORE: In use of the powers vested in me by rency Stabilization Fund shall be entrusted to a Comsection 14 of the aforementioned Decree, and on the mission under the high authority and supervision of proposal of the Commission entrusted with the adthe Secretary of the Treasury. ministration of the National Currency Stabilization TENTH : The Commission referred to in the preced- Fund, ing section shall be made up of the Treasurer General of the Republic, who shall be Chairman, the Di- I RESOLVE: rector General of Customs, and the Director General FIRST: A bureau, to be called "National Currency of Accounting, the Secretary of the Treasury being Stabilization Exchange Bureau," is hereby created, authorized to designate three alternates to act for which will have charge of all matters connected with the commissioners, in case of illness or absence. the foreign currency obtained through the applica- The Secretary of the Treasury shall provide sub- tion of Decree No. 1358, it being understood that the ordinate personnel for the Commission, as well as creation of said bureau will entail no additional exoffice quarters, furniture, and supplies that may be penses whatever to the National Treasury until such necessary. time as these are included in the General Budget of ELEVENTH: The Commission shall issue the neces- the Nation. sary regulations to secure proper guarantees from SECOND: The office of Chief of the "National Curthe exporter that the exchange shall be effected in rency Stabilization Exchange Bureau" implicitly the manner established in this Decree, and future carries with it the position of Chief of Office of the exports by any exporter or producer who fails to Commission entrusted with the administration of the make the exchange that is provided for shall be pro- Stabilization of National Currency. hibited. The General Treasury of the Republic is charged TWELFTH : The provisions of this Decree shall gov- with the enforcement of this Decree. ern from the date set forth herein with respect to exporters of sugar or its equivalent. With respect Habana, June 16, 1939. to exporters of other products, the Decree shall take JOAQUIN OCHOTORENA, effect on the date fixed by the Secretary of the Treas- Secretary of the Treasury. ury for each class of product. THIRTEENTH: With the exception of the Adminis- TREASURY DEPARTMENT INSTRUCTION3 In use of the powers conferred upon me by section tration of the National Currency Stabilization Fund, the Office of the Director General of Customs Bureau 14 of Presidential Decree No. 1358, of June 10, 1939, shall assume the other functions derived from the and on proposal of the Commission entrusted with application of this Decree, and to that end there is the administration of the National Currency Stabilicreated in the Division of Tariffs, Protests and Revi- zation Fund, I resolve to issue the following: sion of said Bureau the Export Fiscalization Section, which shall be made up of the personnel to be ap- INSTRUCTION NO. 1 pointed by the Secretary of the Treasury, and in no FIRST: The provisions of Presidential Decree No. event shall the creation and functioning of said Sec- 1358 shall be applied only to the shipments of sugars tion involve new expenditures for the Treasury of and syrups carried by vessels approved for export in the Republic, until the same are included in the Gen- conformity with the provisions of Article 147 of the eral Budget of the Nation. Customs Regulations, beginning on the 20th day of FOURTEENTH: The Secretary of the Treasury is this month. authorized, within the scope of his powers, to issue SECOND : For the purposes of appraisal of the shipsuch supplementary regulations as may be necessary ments, sugars shall be classified in two groups: refor the better application of this Decree. fined sugars, or those the polarization of which is FIFTEENTH: The Secretary of the Treasury is en- above 99°; and unrefined sugars, which include all trusted with the enforcement of the provisions of other sugars, whatever be their polarization. this Decree, which shall take effect from the date of For the purpose of estimating the price of unreits publication in the Official Gazette of the Republic, fined sugars, the average price of the quota to which except as regards the delivery and exchange referred the sugars that are exported belong, that is, that to in the Third, Fourth, and Fifth sections, which fixed by the Department of Agriculture in fulfillment shall become effective as from June 20 of the present of the provisions of Article VI of the Law of June 25, year 1939. 1938, shall be taken, after converting said average Done at the Presidential Palace, in Habana, on this price into currency of the United States of America. tenth day of June, 1939. The average prices which appear under the heading, FEDERICO LAREDO, "United States—Free," shall be applied to the sugars President. of the American quota, and those set forth under the JOAQUIN OCHOTORENA, heading, "Other Countries—Free," to the other Secretary of the Treasury. sugars exported. For the purpose of estimating the value of refined TREASURY DEPARTMENT DECREE2 sugars, the same procedure fixed in the preceding WHEREAS: Presidential Decree No. 1358, of June paragraph shall be used, adding 8 per cent to the 10 of the present year, created the "National Cur- prices which must be applied. 2 Published in the Official Gazette of the Republic of Cuba 3 Published in the Official Gazette of the Republic of Cuba dated June 27. 1939. dated June 27, 1939. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

744 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 THIRD: The Customs Bureau shall forward to the stock broker, the penalty shall be from six months customhouses the list of average prices in currency and one day to three years, a fine of one hundred of the United States of America which are to be in to three hundred fifty quotas, and special prohibiforce during every fortnight, for the purpose of tion from continuing such business for a period estimating the value of sugar shipments. equal to that of the imprisonment imposed. FOURTH : All sugars and syrups exported in vessels "(C) Managers, administrators, directors or approved for export shall contribute to the National counselors of the companies, corporations, or ju- Currency Stabilization Fund commencing on the ridical entities responsible for these manipulations 20th, even though the total or partial price of said to increase or depreciate their own securities or sugars may have been paid in Cuba prior to the date property, shall incur the same penalty." of the shipment. ARTICLE III. The Executive shall have charge of The Commission is charged with the enforcement the supervision and inspection of exchange transof this Instruction. actions which might be altered in the manner men- Habana, June 17, 1939. tioned in the preceding article, and to that end shall make use of such agencies as may be necessary for JOAQUIN OCHOTORENA, the discharge of this high function. Secretary of the Treasury. ARTICLE IV. Without prejudice to application of penalties for violation of Article 556 of the Social MEASURES RELATING TO SETTLEMENT IN Defense Code, the President of the Republic, in the PESOS OF CERTAIN OBLIGATIONS CON- face of grave emergencies resulting from such viola- TRACTED IN U. S. DOLLARS tion, is authorized and directed to issue orders, create agencies, or delegate functions, for the establishment LAW OF JULY 8, 1939 4 of the rules and regulations that he may deem proper to prevent any unjustified depreciation of the na- ARTICLE I. The following paragraph is added to Article V of Decree-Law No. 410 of 1934:5 tional currency. ARTICLE V. Likewise, the President of the Repub- "If the currency agreed upon is legal tender of lic may issue whatever measures and orders may be obligatory acceptance in Cuba, the other currency necessary, to prevent the increase in prices of articles which enjoys parity in its legal value and has un- of prime necessity, and he may likewise decree such limited circulatory force for obligations entered measures as he may deem proper for preventing the into, or to be fulfilled, in the national territory, increase of public service tariffs, whether such servshall have the same consideration for debts in the ices are rendered by the State, the Province, or the currency referred to. Obligations contracted in Municipality, or by any natural or juridical person. connection with sales of, or loans on, produce, ARTICLE VI. The authorization granted in Articles which is sold principally in foreign markets, shall IV and V of this law shall remain in force until Connot be included in this provision, nor shall there gress enacts such legislation as it may deem proper be included transactions in connection with bank in connection with the national currency. accounts formed by deposits of cash which belong ARTICLE VII. All laws, decree-laws, orders, regulato their owners for purposes of withdrawal, nor tions, and other legal provisions which are contrary those derived from public debts, in which the Gov- to the fulfillment of this law are hereby repealed, ernment shall maintain payment in the currency the same to take effect from the date of publication stipulated." in the Official Gazette of the Republic. The provision contained in the preceding para- THEREFORE: I order that the present law be engraph will have retroactive effect with reference to forced and executed in all its parts. obligations awaiting payment, for reasons of social Done at the Presidential Palace, in Habana, July interest, which is being safeguarded, and of public 8, 1939. order. FEDERICO LAREDO, President. ARTICLE II. Article 556 of the Social Defense Code JOAQUIN OCHOTORENA, is amended to read in the future as follows: Secretary of the Treasury. "ARTICLE 556. (A) Those who, through the spreading of false rumors, by propagating false TREASURY DECREE NO. 1727 news or taking advantage of any artifice, or carry- WHEREAS: Article I of the Law of July 8, 1939, ing on any act which might disturb or falsify the published in the Official Gazette on July 10, provides conditions of supply and demand, or which should as follows: cause damage to the general conditions of the market, causing an unjustified increase or de- "The following paragraph is added to Article V crease in the value of currency of legal tender, in of Decree-Law No. 410 of 1934: the current price of goods, public or private in- " 'If the currency agreed upon is legal tender come, quotable securities, salaries, or anything else of obligatory acceptance in Cuba, the other curthat might be the subject of a contract, shall be rency which enjoys parity in its legal value and punished by imprisonment from three months to has unlimited circulatory force for obligations two years, and a fine of from ninety to three hun- entered into, or to be fulfilled, in the national dred quotas. territory, shall have the same consideration for "(B) If the offense be committed by the direc- debts in the currency referred to. Obligations tors, representatives, or officials of banks, corpora- contracted in connection with sales of, or loans tions, entities or juridical persons, or by an inter- on, produce, which is sold principally in foreign mediary agent, broker, stock exchange agent, or markets, shall not be included in this provision, nor shall there be included transactions in con- 4 Published in the Official Gazette of the Republic of Cuba nection with bank accounts formed by deposits dated July 10, 1939. of cash which belong to their owners for pur- 6 See FEDERAL RESERVE BULLETIN for October 1934, p. 660. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

745 SEPTEMBER 1939 FEDERAL RESERVE BULLETIN poses of withdrawal, nor those derived from of a document payable in Cuba by the buyer, or public debts, in which the Government shall what are known in banking or commercial lanmaintain payment in the currency stipulated.' guage as "collection items" (efectos al cobro) and, in general, the payment of the price of mer- "The provision contained in the preceding parachandise imported from abroad through purgraph will have retroactive effect with reference chase or any other forms or means of credit to obligations awaiting payment, for reasons of operations. social interest, which is being protected, and of public order." (b) Commercial credits with or without letters (of credit) used in commerce to finance or facilitate WHEREAS: This Executive, in response to repre- the importation of merchandise and, generally, sentations made by the Havana Clearing House letters of credit of all kinds. banks, realizes that when regulating, as is now being done, Article I of the above Law of July 8, it should (c) Drafts on foreign countries and exchange operbe clearly established that the real purpose of said ations in general, for the purpose of transferring Article I is to govern principally private and mercan- funds abroad. tile operations contracted and to be fulfilled within (d) Loans collateraled by public debt certificates the national territory and which are negotiations of or those of any foreign company or entity which an internal nature and that it should not apply to (certificates) are payable in foreign money, those operations or mercantile or other negotiations since the owner of such certificates must receive in which American money is used on the basis of its the principal and interest thereon in such money. international value, such as those upon which the dis- (e) Crop loans (refaction) or obligations of any positive part of this Decree is based and which should other nature, contracted for by produce-exportbe liquidated by payment in the money in which they ing industries already excluded under the law were contracted. in so far as sales or loans guaranteed by produce WHEREAS : Aside from the ample authority granted principally exported, are concerned, if such crop this Executive by Articles III, IV, and V of said Law loans or other obligations are to be paid by the of July 8, 1939, he has also the faculty to promulgate produce in question and if such produce has to regulations necessary to insure better compliance be sold largely in American money and such with laws when such regulations have not been issued money need not be acquired (especially) to liquiby Congress, as occurs in this case, and under the date them. provisions of Article 69 of the Constitutional Law in force. (f) Overdrafts accepted by banks from their clients THEREFORE: In accordance with the authority shall be paid in the currency of the account in granted this Executive by the said Constitutional which the bank has authorized the overdraft, Law and by the said Law of July 8, 1939, and other provided it has not been formally converted in existing legislation, and upon the recommendation of some other way into a loan. the Secretary of the Treasury, ARTICLE II. This Decree shall become effective from I RESOLVE: the date of its promulgation in the Official Gazette. ARTICLE I. Article I of the Law of July 8, 1939 Done at the Presidential Palace in Habana, July shall not be applicable to the following operations or 19, 1939. obligations, which must be paid in the money agreed FEDERICO LAREDO, upon: President. (a) Payment of the price of merchandise pur- JOAQUiN OCHOTORENA, chased abroad in United States money by means Secretary of the Treasury. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

746 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 ANNUAL REPORT OF THE BANK FOR INTERNATIONAL SETTLEMENTS The ninth annual report of the Bank for Under the strain of almost uninterrupted International Settlements, covering the year political tension, bringing with it general ending March 31, 1939, was presented by uncertainty as to the business outlook, con- Dr. J. W. Beyen, president of the Bank, to tinuous capital flight from Europe and growthe annual general meeting of shareholders ing armament expenditure in all countries, on May 8, 1939. Selections from the report the economic development of the world does are given herewith i1 not, however, show the picture of colorless gloom that one would expect. It lacks, of RECENT ECONOMIC DEVELOPMENTS course, stability and nowhere inspires con- It is not difficult to indicate the reasons fidence in the strength of the more favorable why business last year passed through tendencies that are at work. The state of periods of great anxiety. In the opening the world is feverish rather than healthy; months of 1938 repercussions of the abrupt and whatever recovery may be seen is anydecline in American industrial activity that thing but steadfast, since it is dependent on had begun in the previous autumn were felt the use of stimulants on the one hand and all over the world, particularly in the export interrupted by grave disturbances on the trade. This decline proved the more de- other. pressing as it came at a time when there In the face of grim reality in Europe there were high hopes of more sustained prosperity is decidedly less belief in experimentation in the United States. The general weakness with new methods of economic policy. Too in prices of primary products, a consequence many measures that in former years were of reduced American demand, and the down- discussed as the outcome of economic wisdom ward tendency of many other prices called were in fact forced on governments by dire for reductions in costs and other adjust- necessity. When a violent storm blows up ments, which generally met with resistance the first task is to avert disaster and to steer from interested parties. In countries of the as well as possible in face of contrary winds sterling area, which had experienced almost and currents. But on the whole the weather uninterrupted expansion since the autumn in the past year, although stormy, was not of 1932, conditions were ripe for a slacken- altogether unkind and not all the winds were ing of internal activity. unfavorable. To this situation were added exceptional COST AND PRICES events of a political character, which dealt Although increased efficiency has enabled rude shocks to business and left in their industry to stand a secular decline of workwake a level of armaments and military ing hours accompanied by rising wages, yet preparation never before witnessed in times experience has demonstrated that abruptly of peace. Among the most striking signs of forced decreases of hours or increases of the political, uncertainty was the pressure wages may, by their dislocating effects on on sterling caused by mass movements of the cost structure, be extremely unfavorable funds which, with other factors, added to a continued upswing of the business cycle. $1,500,000,000 to the American gold stocks Reductions of hours of work made in some in the five months from August to December 1938. More harmful effects were found in the restraints suffered by ordinary business, Actual Working Hours per Week. as initiative was cramped and the will to 50 50 II|M,M II .i ..[..,.. make new investment weakened. Filling the Ge Mn"': : gap by government orders for armaments •Art France \A A A A and other purposes for the time being helped to sustain employment but necessarily diverted productive power from the pursuit France of normal trade and especially tended to impair the export capacity of the countries /s/" r h , most deeply involved. 35 35 \ /> ff i / i 1 It has been necessary for reasons of space to omit a con- u. U.S.A. siderable amount of interesting factual material. This has reduced the length of the report by about two-thirds. The complete 1931 1932 ,.A1.933 193* 1935 1936 1937 1938 1939 °u report is available in English. For earlier reports see BULLETIN for June 1938, 1937, 1936, 1935, 1934, 1933, 1932 and July 1931. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

747 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 countries to "spread employment" have sudden a rise were fully recognized by the notably failed to achieve their object. At authorities; in February 1937 President most it has been possible to stem the tide, Roosevelt uttered a warning "that prices as is often the case with measures of govern- were too high". But there does not appear ment interference. Exchange restrictions, to have been, at the time, the same realizaimport duties and export premiums may pre- tion of the danger involved in the sudden vent conditions from getting worse in the rise in wage costs, although the advance in country where they are employed, but they hourly wage rates of the leading industries rarely help to make them better. And it is in the United States was unusually rapM, doubtful how far their influence even on the amounting to no less than 15 per cent within internal economy of a country is really as a period of seven months and exceeding the effective as it appears, though account must simultaneous rise in the prices of finished be taken of a particular combination of cir- articles. cumstances in some countries, which explains There can be no doubt that the rise in costs their special policy. As to the fostering of of production was one of the main causes employment, it may be said, on the basis of of the precipitous decline in industrial acthe experience of recent years, that all ex- tivity of the United States during the second periments have failed except those that lead half of 1937. With a more gradual advance to increased production either by direct gov- in wage rates the chances were that a greater ernment management of the whole economic number of unemployed would have been system or by creating the one condition absorbed by industry, increasing the purnecessary for increased investment by chasing power in the hands of the public private enterprise, i. e., a just equilibrium without the same risk of an early setback. between cost and prices. Not even the most extensive distribution of purchasing power by the government nor the persistent pursuit of a cheap-money Wage Rates and Prices of Finished Products policy succeeded in bringing about a lasting a. in the United States. 130 recovery when costs rose so much as to be out of line with current prices of finished articles. In France before the devaluation in 1936 commodity prices had fallen more than wages, though in each of the years 1930-36 "purchasing power" was distributed from budgets balanced only by means of large public borrowing. French industrial activity continued to decline. Under the regime of 1936 1937 1938 far-reaching price control established in Germany, industrial and commercial busib. in Great Britain. nesses were allowed an appropriate margin of profit to enable them to carry out their Priceof finished products economic tasks; to prevent a general rise in prices the principle was adopted that wage rates should be maintained unchanged but at such a level that an adequate minimum income would be secured for the workers. For a policy of public works to be helpful as a stimulus to trade, it must be framed not as a substitute for but as part of a general i i i i i 1 i i I i i I i i I i i 1 i I i i I i i I endeavor to bring about a return to equilib- 1936 1937 1938 rium in the economic system; the individual methods of application should be governed It was a feature of the boom in the United by this overriding consideration. Care must States during the winter of 1936-37 that be taken particularly lest the carrying-out costs of production rose at an unusually rapid of an extensive policy of public works inrate. Prices of primary products increased tensifies a disequilibrium already existing. by fully 30 per cent from the autumn of 1936 The inauguration of such a policy usually to March 1937; the dangerous effects of so involves starting publicly-financed construe- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

748 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 tion on a large scale; and the consequent re-establishment of a real equilibrium within demand for labor may easily lead to a rise the cost and price structure has been imin wages. As a natural recovery in the peded by internal or external causes. building trade has proved to be a most re- It cannot be overemphasized that the liable—not to say indispensable—element in establishment of those conditions which a general revival of business, an increase in make for a more lasting recovery of industry building costs may be very detrimental in is indispensable for a general improvement that it may more than offset the beneficial in the standard of living. All available evieffects of the immediate extra employment dence shows that in times of rising output in the trade. labor receives proportionately as large an Much attention has been devoted to the increment as capital and absolutely a bigger Swedish public-works policy in the years gain, since labor's share of the national in- 1932-35 when, in order to stimulate business come is by far the larger. The attainment and give some temporary work to the un- of equilibrium in the cost and price structure employed, fairly substantial provisions were should not be regarded only as a question made in the budget for increased spending of between labor and capital; it directly affects public money, the charges being met by a the general question of increasing the volume temporary increase in the national debt. It of employment. For after all the absorption is of some interest to note that, notwith- of the unemployed must depend upon the standing the inauguration of this policy (and attraction of labor to expanding activities, the depreciation of the Swedish crown in producing goods and rendering services for 1931), the wages of Swedish workers, in- which the demand is growing, from other cluding those in the building trade, were activities (and among them in many counreduced by 4 to 10 per cent in the period tries agriculture) in which there is relative 1931-34. A Swedish Royal Commission re- overproduction. A sharp rise in wage costs porting in 1938 on conditions in the building in the go-ahead industries must increase the industry ascribed the intense development cost of the finished products and thus limit of building in Stockholm during the years ales; it will also stimulate the use of more 1934-37 largely to the reduction in building labor-saving machinery and in that way costs and to the low interest rates at which further reduce the demand for labor. Less money had been readily available for house labor will thus be employable in these infinancing. With the improvement in Swedish dustries, which usually are those already business from 1934 to 1937, not only was the paying the highest wage rates, and condicut in wages which had been conceded dur- tions in other occupations will be pro tanto ing the depression fully restored but addi- adversely affected. tional increases were obtained in most There is no doubt that the problem of branches of industry. The policy thus pur- transfer of labor from one occupation to sued, which has led to a remarkable reduc- another has become more difficult to solve tion in the number of unemployed, has been in recent years and especially in comparison as much in the interests of labor as of the with conditions ruling before the world war employers. when the leading industrial countries in Equilibrium in the Swedish cost and price Europe and America, thanks to a great nastructure was thus re-established, on the one tural increase in population and great freehand, by a reduction of costs (decrease in dom of migration, were expanding more wage rates, etc.) and, on the other, by a rapidly than at present. If, for example, in series of expansionist measures including the first decade of the present century the the inauguration of a public-works policy number of workers in a given industry beand the gradual application of cheaper came excessive, it sufficed, as a rule, to abmoney rates, which in a measure also served stain for a few years from engaging new to reduce the cost of production. If Swedish workers in that industry, leaving the young experience be compared with that of other people entering the labor market to seek countries, it may be concluded that one- their first employment in other industries. sided reliance on expansionist measures is The natural expansion of demand from a a dangerous line of policy; neither cheap growing population could be relied upon to money nor the spreading of purchasing bring about equilibrium almost by itself. power through the budget or by increases Only by way of exception was the progress of wages has anywhere brought about a of rationalization so rapid as to upset the sustained revival of business so long as the functioning of this mechanism. At present Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1939 FEDERAL RESERVE BULLETIN 749 conditions are in many respects different. balanced direction and remuneration of a As far as the increase in demand is con- country's productive forces. cerned, it will not be brought about in the same degree as previously by an increase in CHEAP MONEY population but will rather be the result of Be it said once, however, that it is not a rise in the standard of living. One im- intended to minimize the part played by portant effect of this change is that a gradual cheap money in overcoming the depression increase in the demand for more or less the of 1930-33. In the active post-war decade same kind of goods can no longer be expected the capital loss suffered during the war was but there will be considerable shifts in the quickly repaired in many countries and imdirection of the demand. Furthermore, ac- portant additions were made to capital equipcount must be taken of changes in technique ment all over the world. As a result it affecting the number of workers required in became an indispensable condition for the different industries. As a consequence, the maintenance of economic and financial equileading industrial countries are increasingly librium that interest should be brought down faced with the most difficult problems of from the relatively high post-war level to transferring workers who have already be- rates more in conformity with those ruling come qualified in some particular industry before the World War. In fact, it was necesto other occupations. Coal-mining is a case sary, at least in some countries, to reduce in point. From 1901 to 1911 the number rates below the pre-war level in view of the of coal miners in Great Britain increased by more stationary character of the post-war 36 per cent from 752,000 to 1,021,000; from population in the western world and the 1924 to 1938, on the other hand, the number downward tendency of commodity prices fell by the same proportion from 1,214,000 from 1924 onwards (as compared with the to 777,000, while output declined by 15 per rise of about 30 per cent in the price level cent only. The demand for coal, it is true, from 1900 to 1914). In the United Kingdom has been affected not only by the more sta- the conversion of the huge block of War tionary character of the population but also Loan from 5 to 31/2 per cent in 1932 paved by competition from oil and electricity; but the way for a general reduction in long-term for that very reason it illustrates well the rates. In the United States, a debtor country difficulties which have arisen. before the war with interest rates well above The expansion in the boom years 1927-29 the standard in the richer European counwas most marked in a number of relatively tries, the transformation to a creditor as new industries—artificial silk, automobiles— well endowed with capital equipment as any while many older industries in the United other country necessitated a downward ad- States as in the United Kingdom and Ger- justment in the interest structure the more many hardly took part at all in the expansion; difficult to achieve as there was no precedent the 1927-29 boom was, in other words, much for really low rates, or, rather, none outside less "all-round" than the upward swings in the short-term market in New York; and, earlier times. Thus the various countries moreover, the important field of mortgage are confronted by a series of problems which financing suffered from a serious lack of did not arise in the same intensity before organization, impeding the necessary adthe world war. Conscious efforts are the justment. more needed to overcome the many causes It seems, however, as if in wide circles of friction which a more complicated organ- the conclusion had somewhat hastily been ization of society necessarily involves and to drawn that the cheap-money policy, having facilitate the entrance of workers into other proved beneficial as a means of overcoming trades than those in which they have been the 1930-33 depression, should be maintained originally employed. The importance of find- unchanged in future to serve as a basis for ing a solution to these problems extends far business prosperity and, as a consequence, beyond the particular sphere of the labor that no increase should be made in the official market; for upon mobility of labor and a fair discount rate of the central bank. Looking distribution of costs between different oc- back on developments in recent years, there cupations depend the attainment of a healthy can be little doubt that if in the late autumn development of industry and a more even of 1936 a warning had been given by an indispersion of income between different em- crease in bank rate business people would ployments. No monetary policy can by itself have become more hesitant and as a result mend the mistakes which arise from an un- avoided the unduly large purchases of stocks, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

750 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 the raising of prices and the substantial in- flow of funds. Generally, however, shortcreases in wages. By this hesitation a more term rates remain very low or are still debalanced position would have been main- clining. In London the rate of discount on tained and a great decline in industry and Treasury bills was hardly affected by the employment would have been avoided. efflux of funds. Long-term rates have, how- There are thus some obvious dangers in- ever, been rising in London for the past four volved in a policy of abstaining from increas- years. The increase in the second half of ing bank rate as a means of preventing the 1938 is to be associated with the capital outemergence of disequilibrium in the cost and flow but the first sharp rise came in the price structure, especially when there is often spring of 1937 at the time when the armalittle reason to expect that such a rise will ments program and the consequent heavy lead to any serious restriction in the use of borrowing were announced. It may be recredit. The purely mechanical effect of a called that in the period from 1900 to 1914, rise in bank rate is generally of less import- under the influence of increasing armaments ance than the psychological effect, i. e., the expenditure and rising gold production, longwarning signal given by the monetary au- term interest rates rose on the London thority. An increase of one per cent in bank market from approximately 21/2 to 3V2 per rate does not as a rule materially increase cent. The amounts spent for armaments are costs for the users of credit and certainly not now incomparably greater both absolutely much for the holders of commodity stocks. and relatively than they were before 1914. The psychological effect, on the other hand, In the ten years from 1903 to 1913 armacan be very great and in many instances ments expenditure of all countries about sufficient to check a tendency to undue ex- doubled, while in the ten-year period from pansipn. One danger is indeed that the 1928 to 1938 the increase was not less than warning may be too much heeded. It seems sixfold. as if the general public and the political and If this expenditure is compared with the business worlds had become so used to cheap national income the following proportions money and so persuaded as to its beneficial are obtained: in 1913 the total army and navy effects that an increase in bank rate (in- votes in the United Kingdom amounted to tended simply as an admonition to caution) about £77,000,000, say, 3i/ per cent of the might be taken as a sign of grave times to national income; in 1939-4 2 0 the amounts to come. That being the case, the idea has be devoted to armaments are budgeted at to be stressed that the use of the bank rate £630,000,000, representing about 14 per cent can only partially, if at all, be replaced by of the national income or fully four times as other means of action. Other kinds of warn- much as the pre-war percentage. Similar ing can easily cause a "scare" with highly proportions are found in some other countries undesirable and unforeseeable effects; and as well and give an indication of the excepthe imposition of official and unofficial em- tional magnitude of current armaments exbargos seems to suffer from the disadvantage penditure. Moreover, the permanent burden that a reversal of policy when conditions have threatens to be higher, for one aspect of changed may be difficult to ensure, while a re- present armaments is the rising amount reduction in bank rate may be made at the quired for maintenance and replacement, earliest appropriate moment. It is possible modern material—aeroplanes, guns, ships— that only after changes in bank rate have being very expensive while, in addition, the been made will the business public and others running costs are high and much of the maemancipate themselves from the tendency terial soon becomes obsolete. to overrate cheap short-term money and ap- It is, of course, inevitable that an outlay preciate the true significance of the changes. on such a scale must exert a strain on finance The Macmillan Committee (page 132) urged and productive effort, impairing the possithat central banks should not be afraid of bilities of social improvement and even dismall and frequent changes in bank rate. rectly reducing the standard of living. From "Such small and frequent changes", continues a financial point of view the immediate probthe Report, "would also have the advantage lem of the Ministries of Finance is to provide of accustoming the public not to attach undue the necessary cash, whether through taxes or importance to every necessary adjustment/' loans, in such a way as neither to endanger In 1938 only one European country—Bel- the purchasing power of the national curgium—had recourse to an increase of bank rency at home nor to upset the balance of payrate when confronted with a violent out- ments in relation to countries abroad. The Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1939 FEDERAL RESERVE BULLETIN 751 safest policy is doubtless to cover as much as rise, stimulating the investment of long-term possible of the expenditure from taxation, capital; and soon interest rates stiffened. but on such a scale the hundred-per-cent If, with the abundant gold production of application of this policy is hardly possible, today, a definite rise in commodity prices meeting as it does with obvious psychological takes place, interest rates should again begin resistance and being in some ways technically to move upwards. An artificial insistence on harmful to the development of maximum cheap money would then most certainly have production. The aggregate of budget deficits a disturbing effect on the credit system, with in the world today covered by borrowing untoward repercussions on economic life exceeds $1,000,000,000 per month. generally. To limit the burden of armament financing In the international field normal credit the governments will naturally be anxious to relations for commercial purposes are mainborrow on the cheapest terms. That does not tained between those countries which have mean, however, that the Ministries of Fi- free and relatively stable currencies, and the nance need be opposed to an increase in bank exchange of goods between these countries rate when required by market conditions. still represents two-thirds of world trade. In An advance in short-term rates may be only relation to countries with exchange restricpartially reflected on the long-term markets tions the normal international credit mechanand not cause an addition to the burden on the ism can function only in a limited measure, budget such as might at first be expected. But though efforts are being made through the no budgetary consideration can equal in im- granting of special export credits and the portance the predominant interest of main- purchase by central banks of export bills to taining equilibrium in the cost and price provide as much as possible of the ordinary structure so as to prevent a setback in trade facilities. It cannot, however, be expected and industry. The somewhat higher cost of that settlements resulting from purely comthe floating debt is trivial compared with the mercial transactions will offset each other cost to society as a whole (and therefore also completely either in amounts or in time; to the government finances) of a serious set- there will always be—in the cash and still back in business of the kind which occurred more in the forward markets—debit or credit in the recent recession when industrial pro- balances to be taken care of by other than duction in the United States fell by one-third commercial transactions. The normal funcfrom September 1937 to May 1938. The tioning of the credit system presupposes a adoption of a flexible policy would, of course, certain amount of financial credits; therein no way interfere with the working of the fore when attempts are made to distinguish modern technique of preventing international between desirable and undesirable credit movements of funds from exerting an undue transactions in order to eliminate speculainfluence on credit conditions in the markets tion, what is to be regarded as "desirable" affected. cannot possibly be restricted to purely com- One of the anomalies of the present situa- mercial transactions, for such a restriction tion is that the abundant gold production would interfere with the proper working of has been absorbed in relatively few centers, the markets. Before 1931 differences in the consequences being that in these centers pressure between the different money a very high degree of liquidity is found, markets were speedily evened out by an inbased on the large gold reserves of the cen- flow or outflow of banking funds. When tral banks and high cash reserves in the there was an increase in the flow of financial hands of the commercial banks. In so far as funds from one market to another beyond previous experiences may serve as a guide, it the normal requirements of seasonal and may be recalled that the first result of the similar changes, the fault was not in the new gold obtained from the Transvaal in the credit system, which continued to pursue 'nineties of the last century was to create a its function of equalizing the pressure of large measure of liquidity and very low inter- credit, but in underlying disturbances affectest rates on the short and long-term markets. ing the whole range of international capital As, however, under the influence of the large movements. The crisis which developed in gold production, commodity prices began to 1931 has, more effectively than even the war rise—with a lag of perhaps five to ten years— of 1914-18, put out of action the system of manufacturers and merchants needed more banking credits from one market to another. working capital to finance the holding of It is particularly when an attempt is made stocks; at the same time profit rates began to to restore the old facilities that the advan- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

752 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 tages of the previous sensitive mechanism The decline in the value of the French functioning in a world of stable exchanges franc in the spring of 1938 had its repercusare best realized. sions on the currencies of other countries and particularly on the Belgian franc, which EXCHANGE RATES, FOREIGN TRADE, AND PRICE in the first half of May sustained an attack MOVEMENTS of extreme intensity. At first the Belgian commercial banks were able to finance the 1. EXCHANGE RATES demand for foreign currencies from their Under the influence of an expanding vol- own liquid resources, but on Monday, May 9, ume of world trade, the year 1937 witnessed heavy demands were made for credit facilthe re-establishment of exchange stability in ities to the National Bank, which was thus a higher degree than in any year since 1931. in a position to make its influence strongly Unfortunately this achievement was not con- felt. On Tuesday, May 10, bank rate was solidated in 1938 when, on the contrary, a raised from 2 to 4 per cent and on the same distinct setback occurred, caused by the fall day the President of the Banking Commisin raw material prices, which adversely af- sion (at that time also Governor of the fected the balance of payments of the pri- National Bank) conferred with representamary producers, and by the international tives of a number of the most important political situation, which caused a heavy out- banks and secured their co-operation in a flow of nervous funds from London and someprogram designed to restrict to a minimum other European centers primarily towards the granting of new credits and to prevent New York. credits already granted from being used for During certain periods of intense political other than normal commercial purposes. unrest the foreign exchange markets dis- Moreover, the National Bank itself, before played unusually great activity: but the ex- lending to a commercial bank, made sure that tent to which the world's exchange position the bank in question had fully utilized its own deteriorated during the year should not be resources and that none of its cash in Belgian exaggerated. Over the year 1938 the ex- currency was used for swap transactions. change value of sterling declined by 6^2 per While maintaining the spot rate of the franc cent, but even so the sterling-dollar rate was at the gold export point, the National Bank kept generally within about 4 per cent of the did not intervene to support the rates in the old par, while inside the sterling area itself forward market but allowed these rates to deno single defection occurred. The raw ma- preciate sharply. The primary object of this terial producing countries which suffered policy was to make speculative selling diffifrom the fall in the prices of their pr°cl- cult and expensive; and, in fact, forward ucts kept, as a rule, a strict supervision rates widened on certain days to discounts over the declines of their exchange rates corresponding at times to 30 per cent and and, in some cases, lost only whatever im- more per annum—these rates being, howprovement they had made in the previous ever, largely nominal. year. Moreover, the French franc, which Already in the second half of May the outin the first four months of 1938 fell by 18 flow of funds was largely arrested, and in the per cent, was held from May onwards and, first week of June gold began to return and towards the end of the year, attracted a mea- continued to do so with insignificant intersure of confidence, which found its expres- ruptions to the end of the year. From April sion in a substantial repatriation of funds. 28 to June 1, 1938, the gold efflux amounted The fate of the French franc since the de- to B. fcs. 4,540,000,000, of which over onevaluation in the autumn of 1936 has been quarter may be considered to correspond to dominated by domestic rather than by world withdrawals of foreign-owned funds (in the developments, i.e., the determining factors form of deposits, notes, etc.) ; of the rehave been the movements of French costs and mainder about one-half represented flight of prices, the volume of French production, the Belgian capital, speculation, etc., and the methods of financing the budget deficits and, other half the deferred covering of commerfinally, the attitude of the French public as tocial debts in Belgian francs and anticipated the probable future value of the currency. payment of debts in foreign currencies. It is As, in recent years, there has been practically of interest to underline the magnitude of this no foreign money in the French market, for- last item, for the importance of a shift in the eign transactions have had little influence on dates and terms of purely commercial paythe value of the franc. ments is generally greatly underestimated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1939 FEDERAL RESERVE BULLETIN 753 In the case of Belgium the effect was, how-rations to the contrary—may further devalue ever, of only a temporary nature and hardly the dollar, and thus a "dollar scare" develops, affected the yearly figures of gold losses. driving funds from the country. When busi- The changes in the value of the French ness again shows signs of improvement these franc and the capital movements to and from fears subside and apprehensions as to the Paris and Brussels had their effects on the permanence of the present gold equivalent London market, but a more important influ- of the dollar are forgotten. The coincidence ence on the exchange value of sterling was in the latter half of 1938 of an upturn in the relationship to the United States. The business in the United States and a severe different phases of recent developments are political crisis in Europe created a situation clearly seen from an examination of net which set capital rushing to the New York movements of merchandise, gold and capital market. to and from the United States. While these movements of capital, caused by a variety of monetary and political fears, have dominated the exchange markets at dif- NET MOVEMENTS TO AND FROM U. S. A. Percentage ferent periods of the year, other factors have increase (+) been by no means negligible. or decrease (—) Sterl- Quartsrlv figures For- Net re- Reported in 348 indus- ing (i) Relative developments of wage rates eign ceipts capital trial stocks on dollar trade of goldinflux (+) N. Y. Stock rate and prices of finished products in the United bal- from or market Kingdom and the United States over the last ance abroad efflux (-) two years have been shown in the graph on page 747. The widening discrepancy found In millions of dollars ln% Average in the United States between the prices of 1936 Fourth quarter + 67 +352 +327 +10 4.90 finished products and wage rates has no par- 1937 First -114 +396 +323 + 7 4.89 allel in the United Kingdom, a difference Second ' - 34 +633 +630 -12 4.93 Third + 98 +426 +350 - 6 4.97 which is of importance not only for domestic 1938 F F o ir u s r t th + + 3 3 1 2 1 1 + + 13 6 1 3 - - 5 2 0 0 2 3 - - 25 3 4 5 . .0 9 0 8 business in the two countries but also for Second ' +310 +179 -161 - 8 4.97 their exchange relationship. Third +231 +751 +407 +21 4.87 Fourth +273 +981 +326 + 7 4.72 (ii) Another factor which added strength to the exchange value of the dollar was the A correlation is found between the trend appearance of an increased surplus in the of quotations on the New York Stock Ex- balance of payments of the United States at change and the direction of capital move- a time when current items in the British ments affecting the sterling-dollar rate. balance showed a substantial deficit. The When the Stock Exchange was strong, cap- adverse balance of the United Kingdom in ital flowed to the United States; when, on the both 1937 and 1938 was, however, offset by other hand, the Stock Exchange was de- an excess of sinking-fund and other repaypressed, capital returned to Europe. Para- ments over and above the amount of new doxically the net total of security transac- overseas issues and had therefore little direct tions reveal an even trend, variations in the influence on the exchange value of sterling. movements of capital to the United States (iii) A much more important factor was affecting almost wholly the amount held as the use made of funds held by sterling-area "banking funds." Not even in the period of countries, which habitually keep their monestock exchange weakness from August 1937 tary and other banking reserves in London. to June 1938, when large amounts of short- In the boom period from the autumn of 1936 term balances were withdrawn, did foreign to the summer of 1937 these countries accuinvestors as a group reduce their holdings of mulated about £100,000,000 sterling assets, American securities. of which a substantial part must have been Thus the striking connection between the obtained from exports to the United States. trend on the New York Stock Exchange and After the heavy fall in raw-material prices the flow of capital to and from the United in the autumn of 1937, these countries drew States can only be indirect in character, re- on their reserves in London to cover their flecting, it would seem, changes in confidencebalances of payments (and also, to some exfelt as to the future of the American economy tent, to buy gold and dollars). The aggreand the value of the dollar. In times of de- gate amount so disposed of exceeded the acpressed business in the United States it is cumulation mentioned above (see page 762). more or less widely believed that the author- (iv) The repatriation of funds to France ities in Washington—notwithstanding decla- in May and again in the autumn of 1938 also Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

754 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 exerted a certain pressure on sterling. The the old gold value. Immediately after the amount repatriated to France from October depreciation the National Bank fixed a gold 1938 to the end of March 1939 was about price of 4,869.80 francs per kilo fine, in- £100,000,000, the greater part of which came volving a depreciation of about 29 ^ per cent. from London. In the autumn of 1938 when the Swiss franc It is a necessary corollary to the position up to a point followed sterling, the theoretheld by the United States and the United ical gold price of the National Bank resulting Kingdom in world trade and by sterling and from the current gold price in London and the dollar as key currencies that even a mod- the position of the franc-sterling rate rose erate alteration in the sterling-dollar rate is to 4,973.15, involving a maximum depreciaapt to cause great apprehension. It did not tion of 30% per cent. matter that the decline in sterling's exchange It may be mentioned that in the autumn value in the latter half of 1938 was small of 1938 in France also the question arose compared with the great changes in the years whether the franc should follow the down- 1931 to 1934; as long as a downward move- ward movement of the pound. The authorment continued it raised monetary problems ities adopted a somewhat elastic policy, mainof great moment in different countries of the taining the fluctuations in the sterling-franc world. rate within narrow limits, while still taking The question came to a head when sterling some account of the position towards the fell sharply at the end of September; inter- dollar, the policy thus adopted being, so to esting movements were shown especially by say, ratified by the market as the repatriathe Dutch florin and the Swiss franc, two tion of capital continued. currencies which are divided in their allegiance between gold (i. e. the dollar) and 2. FOREIGN TRADE sterling. The significance of the gold link is In 1937 the volume of world trade aplargely due to the importance of trade with proached the 1929 level after a gradual re- Germany, which in both cases passes through covery over five years from the depth of the official clearing accounts. great depression in 1932. This favorable The Dutch florin followed sterling closely trend was, however, reversed in 1938 when during the latter half of August and the in the first half of the year world trade greater part of September, and only on Sep- dropped by 10 per cent more than the usual tember 28, when sterling fell sharply, did the seasonal decline. This fall was in sympathy florin break away, steering a middle course with and very much of the same proportion between sterling and the dollar on this and as the setback in world industrial production the following day. On Friday, September 30, which began in the autumn of 1937. In conthe dollar rate of 1.84 was reached, which trast to developments in 1930, the first full was maintained practically unchanged until year of the previous depression, there was near the end of January 1939 when, under already a marked recovery in the latter half the pressure of an outflow of funds from the of 1938 both in industrial production and in Dutch market, the florin again yielded a little, world trade. This may be taken as a sign of reaching a depreciation of slightly over 22 greater resistance to depressing forces at per cent from the old gold value, i. e., the the present time than in the difficult years same depreciation as when the florin followed following the break of the boom in the sterling up to September 27, 1938. In March autumn of 1929. and April 1939 the florin was again stable on The setback of production and the decline the dollar at about 1.88. in world trade which began in the latter half The Swiss franc maintained a practically of 1937 tended to increase competition on stable rate of 21.30 to the pound during the foreign markets. Overseas countries had greater part of August and September 1938; less purchasing power at their disposal; exbut from September 23 onwards it followed change and import restrictions were intena middle course between sterling and dollar, sified ; and, as the highly industrialized counwith, however, a tendency to a somewhat tries were less able to utilize their productive closer link with the dollar. According to an capacity to the full, they vied more keenly instruction of September 27, 1936 given by in sales on foreign markets. Greater attenthe Federal Council to the Swiss National tion has been given by the governments to Bank, the Bank has to maintain the value the need for foreign trade; in that respect of the Swiss franc at a level corresponding a marked change has taken place compared to a depreciation of about 30 per cent from with the years 1931-1933 when particular Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1939 FEDERAL RESERVE BULLETIN 755 stress was laid on internal recovery by means primary producers. Still the magnitude of of public works, protective measures, etc. the shift should not be exaggerated. The It begins to be felt that the fostering of a share of south-eastern Europe in German country's production for domestic needs with imports more than doubled from 1929 to little consideration for exports may impair 1938; but in 1938 it amounted only to 10 per the capacity of paying for necessary im- cent. The share of Latin America rose from ports, reduce the country's relative position lli/ Per cent in 1929 to 15 per cent in 1938. 2 in world affairs and also in some cases make On the other hand, the continental industrial it more difficult to solve the problem of un- countries in central, southern and western employment. In the final analysis it is Europe, Great Britain, the British Empire realized that an improvement in the standard countries and the United States together still of living presupposes, as it has done during delivered about 40 per cent of German imthe last hundred years, a development of ports in 1938. foreign trade; and the essence of the problem is largely to find the appropriate forms for 3. PRICE MOVEMENTS the desired advance in the exchange of goods. The main characteristics of the commodity In many countries efforts have been markets last year may be summed up as foldirected towards increased aid to exports lows: the rapid fall in prices of industrial by the granting of credits under government raw materials which began in 1937 came to a guarantees (e. g. in the United Kingdom, standstill in the middle of 1938 and a certain Switzerland and the United States). More- recovery set in, though only within narrow over, some central banks, as, for instance, limits; prices of cereals, on the other hand, the Reichsbank, have arranged to take over continued to fall as a result of abundant export bills at favorable discount rates. In crops. Lower prices for foodstuffs tended to countries where forward exchange markets reduce somewhat the cost of living, but prices were lacking, or were active only for par- of finished industrial products, though ticular currencies, central banks have in slightly declining, would seem to have been a many cases made arrangements under which little higher in 1938 than the average for the exporters could cover themselves against previous year. The average import and excertain exchange risks. These various meas- port prices of Germany and the United Kingures may on the whole be said to aim at dom show the same tendencies: from 1937 to a partial restoration of the credit and ex- 1938 average prices of imports (mostly raw change facilities which were ordinarily pro- materials and foodstuffs for both countries) vided by the banking machinery before the fell by around 7 per cent, while prices for disruption caused by the monetary crisis in exports (mostly finished goods) rose by about 1931. 2 per cent. Of particular interest are the Other measures to promote exports took variations which have occurred over the last the form of trade agreements between par- two years in the relation between the prices ticular governments. Raw material produc- of finished goods and of basic materials. ing countries in 1938 were more than usually From the middle of 1933 to the autumn anxious to sell, as their shipments to some of 1936 prices of finished goods and of inimportant industrial countries, hit by the dustrial raw materials showed a high desetback, declined sharply. These countries gree of stability and did not diverge from one continued to find in Germany—whose re- another by more than 10 per cent. At the quirements of raw materials tended to in- end of 1936 and the beginning of 1937, howcrease—a customer to whom they were able ever, prices of raw materials rose altoto sell and from whom they could receive gether too sharply under the influence of an payments in so far as they would take acceleration in the world's industrial re- German goods in exchange. In the bilateral covery coupled with general replenishment arrangements which were concluded, difficult of manufacturers' stocks and heavy market points of negotiation often arose with regard speculation, partly associated with exagto rates of exchange and the settlement of gerated beliefs as to the requirements for outstanding balances; under the influence of armament production. Not only was the these agreements German purchases from rise disproportionate from the point of view the other parties to the arangements, how- of the supplies which became available on the ever, increased. As a result German foreign different markets, but it introduced a serious trade shifted more and more from the main disequilibrium in the cost and price structindustrial countries to certain groups of ure. There was, at the beginning of 1937, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

756 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 also a rise in the price of finished goods but depressing influence of political uncertainty. not in the same degree, and the higher prices The prices of staple commodities are back charged made it difficult to maintain the at the level obtaining in early 1934 and still volume of sales to the ultimate consumers. nearly 40 per cent below 1929. No real reac- Stocks accumulated and when the reaction tion has, in fact, set in against the precipitous came it was particularly violent, being af- decline in the latter half of 1937; for that reason some improvement in prices of staple commodities from the present depressed Index of Industrial Production in U. S. A. and Moody's Spot Commodity Price Index. levels would be generally welcomed. It is, 1929 = 100 however, important that this improvement should not be too rapid. There can be no doubt that the sharp advance in the prices of raw materials from the middle of 1936 to the early spring of 1937 was one of the causes of the subsequent setback in business. Stocks of raw materials reached their lowest level for many years at the end of 1936 and it was this low level of existing stocks which made possible the sharp price rise. Recent investigations would seem to show that, in general, surplus stocks become exhausted and prices rise quickly just before the upper turning-point of the business cycle, i. e., immediately before the setback. When, on the 1929 1930 1931 1933 1934 1935 1936 1937 19381 other hand, raw-material stocks are more plentiful, they act as a brake on an advance fected by the rapid fall in industrial produc- in prices and in that way furnish support tion in the United States and some other to a more lasting recovery. A gradual rise countries and by the increase in the sup- in raw-material prices is certainly compatplies of raw materials induced by the earlier ible with sustained recovery, but the experirising prices. During the fourteen months ence of 1936-37 shows that too sudden a rise from April 1937 to June 1938 the price index brings its own retribution. This would of industrial raw materials in Great Britain seem to indicate that it is not the producfell from 132 to 87 and since then has shown little recovery, despite the rapid increase in Supply and Prices on the industrial activity in the latter half of 1938. International Raw-Material Markets (1929=ioo>. In the above graph, reproduced from the 160 Monthly Survey of the U. S. Department of 150 150 Commerce, a comparison is made for the N United States between the volume of indus- UQ / ^Stocks ""' 140 / trial production, according to the Federal 130 v 130 Reserve index, and Moody's index of prices for 15 staple commodities (including both 120 / \ 120 / industrial materials and foodstuffs). The 110 f 110 latter index, which is more sensitive than the more comprehensive indices of primary and 100 \2 1929-WO 100 Production 31 semi-manufactured products, has usually 90 \ 90 a m c o ti v v e i d ty ; f a b i u rl t y t hi c s o n re s l i a s t te io n n tl s y h ip w w ith as b in ro d k u e s n tr i i a n l 80 \ >\ 80 the latter half of 1938. For though prices of 70 / 70 rubber, non-ferrous metals, scrap steel, hides 60 \ \ 60 and silk advanced from late June there was V* Prices "•»/* no sustained general rise in the prices of 50 %A K- 50 staple commodities. The main reasons for 40 <LLInJMLL • InLIu / n - l.rli.li, iLl..lu ^ J929 1930 1931 M1lo9ln3in2 1933 1934 1935 1936 1937 1938 this failure of prices to respond to the trend of industrial activity were the large stocks 1) I m nd o e v x in g o f a v t e h r e a ge G . erman Institute for Business Research — twelve monthis1 available to meet increased demands, the 2 3 ) ) L 1 e 2 a g c u o e m m of o d N i a ti t e io s n , s g e in n d e e r x a ll o y f e w x o cl r u ld d in p g ri m st a o r c y k s p r h o e d l u d c t b io y n c . onsumers. record crops of cereals and generally the *) c 2 u 0 r r f e o n o c d ie s s tu . ffs and industrial raw materials, based on the average of 51 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

757 SEPTEMBER 1939 FEDERAL RESERVE BULLETIN tion of raw materials which dominates the 37 million ounces, equal to $1,290,000,000. trade cycle, but the consumption of raw ma- The main recipient of gold was again the terials in industries producing investment United States whose reserves increased by and consumption goods. As the production $1,750,000,000—over 35 per cent more than of consumption goods shows a relatively the total current gold production. In the great stability throughout the trade cycle autumn of 1938 when most of this gold was the main cause of the changes in the absorp- shipped to New York it served as a vehicle tion of raw materials must lie in fluctuations for violent transfers of banking funds, the in the production of investment goods. spectacular nature of which might easily ob- Changes in cost and price structure by which scure the more profound effects of changes these fluctuations are largely governed are in currents of trade and investment. As a influenced by the abundance or depletion of matter of fact, over one-half of the gold acraw-material stocks in so far as they lead to quisitions of the United States during 1938 a rise or fall in costs; and this influence is may be associated with the country's large apparently predominant and overrules influ- export surplus and less than half with a net ences from superabundant or depleted stocks influx of capital. Capital movements—and as deterrents or stimulants to production. notably the transfer of nervous funds—as- The part played by visible raw-material sumed greater importance, however, in the stocks would seem to be that of a reservoir first four months of 1939, being caused intaking up surplus output and supplementing creasingly by fear of war, which has brought current needs as the case may be. Organiza- institutions and individuals alike to increase tion of raw-material production by so-called their liquidity, especially in dollars. Larger restriction schemes may seek to prevent the holdings of gold abroad by central banks is continuation of unremunerative production, another manifestation of the same preoccupabut they do not contain any element of stimu- tion, gold earmarked with the Federal Relation. And they must be so administered as serve System increasing by $333,000,000 in not to impair the normal function of visible 1938. stocks, which is to serve as a brake on a too A net loss of gold was sustained by the rapid increase in the costs of the manufactur- British Exchange Equalization Account, ing industries when recovery sets in. which probably parted with something like When in the autumn of 1938 the demand £200,000,000 during 1938, mostly for export for raw materials strengthened, there was a to the United States, a part, however, returncertain tendency to increase quotas of produc- ing to France, especially in the closing tion and export of internationally controlled months of the year. The strain exerted on commodities, but a reaction set in in the fol- the London market brought the gold price on November 26, 1938 to the high record of lowing winter, the restrictions being again 150 shillings and the turnover for the year tightened up when prices showed every sign at the daily official fixings to £208,000,000, of remaining at their comparatively low compared with £123,000,000 in the previous levels. year. Hoarding of gold showed opposite Visible stocks of primary products, as a tendencies during different periods of 1938, rule, increased somewhat during 1938 but but the net result would seem to have been are in most cases not higher than at the end an increase of $100,000,000 to $200,000,000 of 1935 when a general recovery was well in the aggregate of gold hoarded. In the on its way. Government reserves for emeropening months of 1939, however, substangency purposes, though not published, are tial amounts moved out of hoards, mainly known to be higher than ever before, but into dollars. stocks in the hands of manufacturers (as The writing-up of central bank gold redistinct from visible stocks) are probably serves to rates more in conformity with the comparatively low since the general tendency current price of gold has continued, the reseems to have been to buy mainly for fairly valuation of the Bank of England's holding immediate needs. being particularly notable. By the end of March 1939 about 90 per cent of the world's PRODUCTION AND MOVEMENTS OF GOLD monetary gold stock had been thus revalued. Gold production in 1938 rose both absolutely and relatively more than in 1937. The 1. THE SUPPLY OF GOLD increase over the previous year was 5.6 per The continued increase in the annual gold cent, the quantity produced being nearly production can be seen from the table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

758 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 and Swiss exchange funds, the gold holdings South U. S. Other World of which have not been published. Africa S. R.i U. S.A.2 Canada producing Production 3 Year countries The difference of $450,000,000 between the amount of gold produced and the increase Millions In thousands of fine ounces ofdollars4 in the reported reserves represents a reduction in the non-reported gold, i. e., in the ag- 1930.__ 10, 716 1,501 2,286 2,102 4,318 20, 923 732 gregate of the amounts absorbed by the ex- 1931.__ 10,878 1,656 2,396 2,694 4,702 22, 326 781 1932.._ 11, 559 1,938 2,449 3,044 5,264 24, 254 849 change funds or by private hoards in the 1933.__ 11,014 2,700 2,537 2,949 6,326 25, 526 893 western world. Information published re- 1934... 10, 480 3,858 2,916 2, 972 6,950 27,176 951 1935-__ 10, 774 4,500 3,619 3,285 7,376 29, 554 1,034 garding the British Exchange Equalization 1936..- 11,336 5,280 4,296 3,748 8,338 32, 998 1,155 1937-__ 11, 735 5,000 4,753 4, 096 9,304 34, 888 1,221 Account is summarized in the following 1938.-- 12,161 5,000 5,008 4,716 9,969 36, 854 1,290 table. 1 No official statistics for IT. S. S. R. are available, but percentage changes are given irregularly. Present figures are estimates. In millions fin 2 * 3 e F A I g n i o g m c l u l d o u r . e u d s n i n t p s g a a r P r tl h e y i g l r i i p e v v p en i i s n e i e n d s . . dollars of present day value of $35 per ounce of Eq B u r a i l t i i z s a h t i E on x c A ha c n c g o e unt In o o m u f n il f c l i e n io s e ns 1 s 4 o t p 0 f e e r p s r l h o in i f u l i g l n n i n e d a g t s s ounce The receipts of gold from Eastern countries, which were of great importance for a 1937—March 31 26.7 186.7 September 30 39.9 279.0 number of years, reaching a maximum of 1938—March 31 42.5 297.8 $378,000,000 in 1932, fell to $68,000,000 in September 30 21.7 151.8 1937 and to $57,000,000 in 1938. Decrease from March 31, 1938 to September 30, 1938 146.0 It is more difficult than ever to estimate the amounts of gold absorbed by the arts and As the price of gold was rising between industry. An increased tendency to acquire March and September 1938 the Exchange gold for ornaments was noticeable in 1937 Account lost just about £150,000,000 during with the rise in prosperity, but gold conthe six months. Further losses were incurtinued to return in undiminished quantities— red during the last quarter (which led to a in the form of scrap, coins, etc.—so that net transfer of gold to the Account from the industrial consumption was slight and, for Bank of England early in 1939), and private the world as a whole, was probably less than estimates have placed the net reduction of the amount of gold obtained from Eastern the British gold holdings during 1938 at hoards. about £200,000,000, at the current gold price, In these circumstances the amount of gold or say $900,000,000. Thus the British losses available for monetary use in 1938 may be esamounted to roughly double the $450,000,000 timated at about $1,300,000,000, i. e., slightly which were transferred from unreported to more than the annual production of $1,290,reported holdings; it is therefore necessary 000,000. to account for the further $450,000,000 which did not find its way to the reported 2. MOVEMENTS OF GOLD TO AND FROM MONETARY reserves. AUTHORITIES AND PRIVATE HOARDS There is reason to believe that the aggre- It is not difficult to account for the disposal gate gold holdings of the French, Dutch and of the $1,300,000,000 of gold available for Swiss exchange funds increased on balance monetary use, since the reported gold re- during the year. The repatriation of funds serves of banks of issue rose by $1,750,000,- to France during the last two months of 1938 000 during 1938. This figure includes those increased the gold holdings of the exchange gold holdings shown as such in the central fund to a figure higher than at the end of bank returns and practically all the gold in 1937. The Swiss fund, the nominal amount the U. S. Exchange Stabilization Fund, but of which remains unchanged at Sw. fcs. generally excludes gold held under other 538.6,000,000, would seem to have held more items and omits the U. S. S. R. and Spain, in gold and less in balances at the end of 1938 about which sufficient information is not than a year earlier. The Dutch fund is reavailable. Unreported reserves are in par- ported to have increased its gold holdings at ticular those of the British Exchange Equali- certain periods of the year by means of adzation Account (the gold holdings of which vances obtained from the Nederlandsche have been published at six-month intervals Bank, but resales of gold from the fund took during 1937 and 1938) and the French, Dutch place particularly from the end of February Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

759 SEPTEMBER 1939 FEDERAL RESERVE BULLETIN 1939. On the year 1938 alone, however, there can be little doubt that the total gold holding Gold Held under Earmark by Federal Reserve Banks for Foreign Account, in million dollars. rose on balance. In that way the greater part of the $450,000,000 may be accounted for as having been absorbed into the unreported holdings of various exchange funds. Even if account be taken of reductions in other unreported gold holdings of monetary authorities, the amount by which private hoards increased during the year could hardly have been higher than one or two hundred million dollars. Some indications of the recent fluctuations in gold hoarding may be gathered from changes in the gold held in the United King- a 1931 1932 1933 1934 1935 1936 1937 1938 1939 dom outside the reserves of the Bank of England and the Exchange Equalization Ac- ling holdings into gold and that gold was also count. In the following table the figures are shipped to London for safe custody. The given in pounds at 140s. per fine ounce (to holding of gold by monetary authorities in a eliminate fluctuations in the gold price) : foreign center is largely for convenience in the settlement of foreign payments; in the 1937 1938 event of war, shipments of gold may prove In millions of pounds sterling not only risky but extremely difficult to arat 140s. per fine ounce Mar. 31 Sept. 30 Mar. 31 Sept. 30 range with any promptitude. In this connection it is of interest to note the increased Exchange Equalization Account, 187 279 298 152 earmarking of gold with the Federal Reserve Bank of England. 517 538 538 538 System, the figures of which are published Total reserves... ._ .__ 704 817 836 690 monthly and shown in the graph. Less Bank of England's gold reserve at January 1, 1932 200 200 200 200 CAPITAL MOVEMENTS AND INTERNATIONAL Increase in reserves from Jan- INDEBTEDNESS uary 1, 1932 504 617 636 490 The year 1938 was one of abrupt changes Net import of gold to U. K. since January 1, 1932 744 786 825 811 in capital movements between the main creditor countries. The outflow of funds from Gold held outside the reserves of the Bank and the Account 240 169 189 321 the United States, which began in the autumn of 1937, continued in the first half of 1938, In its comments on the balance of pay- and in the ten months up to July amounted ments for 1938 the Board of Trade Journal to nearly $1,000,000,000. This movement, essays that ''the considerable excess of net im-sentially of "hot money/' was mainly caused ports during the past few years, over and by fears of currency complications in the above stocks held by the Exchange Equaliza- United States in view of the severity of the tion Account and the addition to the holding business recession. Then, in the summer of of the Bank of England, is accounted for by1938, came the improvement on the New York gold transferred to London for safe custody Stock Exchange, a growing apprehension or bought in the London market and held for with regard to the exchange value of sterling account of overseas banks and individuals." and, a little later, the increase of political A further complication arises from the fact tension in Europe. With the acute phase of that the British monetary authorities may the crisis in September there set in a violent hold part of their own reserves earmarked movement of capital from Europe which in with foreign central banks. Even so, the two months brought $600,000,000 to the increase from March to September 1938 ofUnited States. At no other time has such over £130,000,000 in the gold held outside the an abrupt reversal occurred. The flow conreserves of the Bank and the Account is oftinued at a slackened rate in November and interest, for it may be concluded that during December, to regain intensity in the early those months, and especially in September, part of 1939. The spectre of war, besides foreign banks and individuals—to a consid- provoking these massive movements of funds erable extent, central banks—converted ster- between nations, has even led to a certain Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

760 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 flight of capital internally in some countries, accounted for by sinking-fund operations, investment declining in those frontier and redemptions and repurchases by forother districts which it is feared may be the eigners, and over $600,000,000 were shortsite of future battlefields. term, inter alia balances accumulated in But spectacular transfers of nervous money England in 1933 when the dollar was defrom one market to another must not be preciating and amounts derived from the allowed to obscure the continuous working liquidation of accounts in Germany. of economic forces beneath the surface. Changes in currents of trade, in relative American Investment Abroad and prices, in foreign investments and in the Foreign Investment in United States distribution of newly-mined gold have their exclusive of short-term balances and direct investments. Cumulated from end of 1925, in million dollars. effect on the transfer of funds and bring into •\r\r\ft the picture important factors resulting from changing monetary and economic conditions in the countries of the world. 2500 can Irvestrlent broa 2500 To obtain a balanced idea of the true char- \ 2000 2000 acter of the capital movement towards the i i \ ) United States it is necessary to take a broad i i view over the past few years. Throughout 1500 i JA 1500 1935 and 1936 the net movement of recorded i — — — » capital towards the United States continued 1000 t i Forein InvestmentinJ.S.A- 1000 fairly evenly, with some accentuation at i i 7 times, at a rate of slightly over $100,000,000 500 500 a fi rs m t o n n i t n h e ; m th o e n t i h n s f lu o x f 1 w 9 a 3 s 7 , a t c h c e e l m er o a n te th d l y i n a v t e h r- e oL / ~—— / - Q 1926 1928 1930 1932 193^ 1936 1938 age rising to nearly $150,000,000. The one- a RIM* way flow then received its first real check (ii) Rather less than one-third, nearly for over three years and was reversed by the $1,200,000,000, is due to foreign buying repatriations in the ten months to July 1938, of American securities. Foreign acquisithe efflux declining, however, from $170,tions of American securities during the 000,000 a month in the last quarter of 1937 past ten years were made in two great to $60,000,000 a month in the first seven waves, nearly $1,000,000,000 in the two months of 1938. years 1928-29 and over $1,000,000,000 Then came an abrupt reversal of the trend: from the middle of 1935 to early 1937, the flow back to the United States from Experience after the stock market de- $70,000,000 in August 1938 rose sharply to clines of September 1929 and March 1937 $390,000,000 in September, thence declining indicates that while foreigners considered slowly to $220,000,000 in October and rapidly as a whole bought American securities to $110,000,000 in November and December during the bull markets they did not sell together. The movements in September and on balance during the subsequent declines October 1938 were predominantly of bankin prices. On the other hand, American ing funds and had an obvious connection investment abroad reached its highest with political conditions in Europe. In these point in 1930 and has since continuously two months gold movements towards the declined. United States were at the unprecedented Foreign investment in American securate of over $500,000,000 a month—twice as rities and the liquidation of American high as at the most acute phase of the gold investments abroad are thus two com- "scare" in the spring of 1937. paratively stable elements—together they From the beginning of 1934, when the account for $2,700,000,000 nearly twonew value of the dollar was fixed, to the end thirds, of the total influx of capital to the of 1938 the capital flow to the United States United States since 1934. amounted in all to $4,200,000,000 and com- (iii) The final factor in the capital prised three main classes of funds: movement since 1934 has been the build- (i) More than one-third, i.e., some ing-up of balances by foreigners in the $1,500,000,000, represents American funds United States, which accounted for $1,repatriated from abroad; of these funds 500,000,000, a little more than one-third. nearly $900,000,000 were long-term and Most of these balances are on demand de- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1939 FEDERAL RESERVE BULLETIN 761 posit with American banks, which at the conditions abroad become more stable." end of 1938 had foreign deposits amount- Though this conclusion must be somewhat ing to $2,000,000,000. Total foreign de- modified by the heavy inflow in the first posits, as high as $3,000,000,000 at the four months of 1939, it serves as a reminder end of 1929, fell rapidly during the follow- against an exaggeration of the quantitative ing years (their decline representing in a importance of "hot money" compared with large degree the liquidation of the gold the movement of other funds. A form of capital flight which has in- Foreign Short-term Banking Funds in United States creased in volume is the purchase of Ameriin million dollars. can bank notes in Europe. Imports of U. S. currency into Europe practically ceased with the devaluation of the gold bloc and in 1937 and the first eight months of 1938 over $50,000,000 were dehoarded in Europe and shipped back to the United States. But in September and October 1938 the European demand for dollar notes reached unusually high proportions and large imports from the United States were necessary. This movement continued in the early months of 1939 when it was estimated that a total of around $500,000,000 in dollar notes were held abroad. eJ,,ul. 1930 1931 1932 1933 193* 1935 • 1936 1937 1938 The export of capital to the United States From 1930 to 1934' the graph is based on figures collected by the Federal Reserve Bank of New York, with Indication of the total for the country from the owing to monetary uncertainties in Euroannual statistics of the U.S. Department of Commerce. For 1935 and onwards the weekly figures published by the U. S. Treasury are taken. pean countries was a factor of particular importance early in 1935 before the devaluexchange standard) to the very low figure ation of the Belgian franc and, later, up to of $500,000,000 in 1933-34. As the dollar the devaluation of the gold-bloc currencies depreciated foreign balances were drawn in September 1936. From this date capital down to the absolute minimum compatible has returned more or less continuously to with current business requirements at the Switzerland and Holland. The particularly bottom of the depression. strong current in 1937 dwindled, however, How much of the $1,500,000,000 of foreign in the first half of 1938 and dried up in the balances accumulated from January 1934 to last half of the year. The cessation of a the end of 1938 should be considered as net influx to these two countries from the "floating" money cannot be determined with middle of 1938 is partly due to a counterprecision. Some accumulation was certainly current of foreign-security purchases, made necessary for ordinary business require- more attractive by the great number of ments, particularly after the de facto stabi- introductions to the stock exchanges of lization of the dollar. These business Amsterdam and Zurich. Early in 1939 an balances cannot be reduced beyond a certain outward flow of capital occurred, closely conminimum, but there can be little doubt that nected with international political developthe bulk of the foreign short-term funds ments. Neither Holland nor Switzerland which arrived at particular periods of acute was greatly affected by the repatriation of tension, as, for example, in September and French capital during the year, which for October 1938, was not needed for business Belgium in May 1938 was a factor of great purposes and constitutes an unstable element importance. in the foreign exchange market. Indeed, France experienced in the winter The FEDERAL RESERVE BULLETIN for Feb- of 1938-39, for the first time in several ruary 1939, from which the essential elements years, a sustained home-coming of national of these paragraphs have been taken, indi- funds previously exported. Recoveries after cates that "an analysis of the capital move- September 1936 and in October 1937 were ment itself suggests that while this movement short-lived and eventually reversed. From has been caused to an important degree by early May 1938, however, when the franc disturbed conditions abroad only a limited was lowered to just within 179 to the pound, amount now represents nervous foreign confidence in the stability of the exchange money ready to leave this country as soon as returned and an influx of capital generally Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

762 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 estimated at some Fr. fcs 16,000,000,000 to currencies of the agricultural countries were 18,000,000,000 occurred. The greater part already affected and that the Australian and of this capital was lost again in the summer New Zealand pounds, for example, depremonths, but in September, during the height iated before the end of 1929. But it is of the international crisis, French funds seldom realized that these countries and were not exported, and from October on- others defended their currencies largely by wards, particularly after the inauguration selling sterling. In the last nine months of of the financial and other reforms early in 1929 Australian London funds were drawn November, there has been a further tide of down by over £30,000,000; Indian official French capital towards France estimated at sterling reserves fell by £40,000,000 from the Fr. fcs 16,000,000,000 to 20,000,000,000 dur- end of 1929 to 1931; New Zealand's sterling ing the winter 1938-39. funds, previously perhaps £10,000,000 or The bulk of French repatriations of capital more, were practically exhausted; the Nain May and since the autumn of 1938 came tional Bank of Egypt's sterling holding was from England and included gold and notes reduced from £30,000,000 early in 1929 to hoarded as well as balances with British £15,000,000 in 1931. Moreover, considerable banks and sterling securities. London, in fresh sterling resources were being supplied fact, has been subject to three distinct out- to these countries through new loans on the flows of funds in addition to the usual and London money and capital markets and, not inconsiderable commercial credit adjust- though in part these loans were offset by ments which are made when a currency de- amounts obtained from regular sinking-fund clines for a prolonged period. Firstly, there and other repayments of overseas issues, was the outflow to France, which has just there was a substantial addition to the visible been mentioned. Secondly, London was the reduction in sterling balances, increasing the most important source of funds exported to strain imposed on the sterling exchange. So the United States (nearly $200,000,000 in long as the United States was lending freely September and October 1938 alone), although abroad, the effects of this drain were to in this connection the function of London as some extent covered up—but American fora conduit pipe for foreign funds is always eign loans stopped dead in 1931. a factor to be remembered. The third outflow—more important than is usually realized—was due to the employment by sterling- Certain Holdings of Sterling Assets. area countries of part of the funds they had Quarterly figures in £ millions. previously accumulated in London to meet current deficits in their balances of payments. In the period up to the middle of 1937 sterling received support from the active balances of payments of sterling-area countries which built up reserves largely in the form of balances and other short-term assets in London. But, as the reserve center of this area largely producing primary commodities, London must be prepared to see the sterling reserves constituted in the good years utilized at times when the prices of primary commodities fall and the balance; of payments of the producing countries become passive. The sterling area is not, of course, a new phenomenon as a trading area, although during the gold-standard period its existence as a currency area was obscured by universal stability on gold. But a strain on sterling, similar to the present one and rarely appreciated in its full significance, occurred from the outbreak of the agricultural crisi The re-establishment of sterling-area balin 1928 onwards. It is generally known ances started in the autumn of 1931, and by that before the fall of sterling in 1931 the the spring of 1934 these sterling reserves had Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1939 FEDERAL RESERVE BULLETIN 763 increased by over £200,000,000—some £50,- dence of the preference for gold at times of 000,000 each for Australia and India, £20,- acute unrest. 000,000 each for New Zealand and South The actual incidence of capital movements Africa, and so on. The United States is now on the exchange markets may be modified by liquidating its foreign investments. And swap transactions, the relative importance some sterling-area countries which in the of which is often difficult to assess. The preearlier period had gold reserves to fall back vious graph shows the excess of sterling asupon, such as Australia and New Zealand, sets over sterling liabilities of Canadian and have practically disposed of them and now United States banks. For the Canadian rely entirely on their sterling balances as banks this is a fairly small and comparatively international reserves. From the middle of stable item which arises from the fact that 1937 to the end of 1938 the net sterling funds Canadian banks have branches in countries of the sterling-area countries shown in the linked to sterling whose excess of deposits is graph fell by some £100,000,000—India lost employed in London. The excess of United over £30,000,000, New Zealand £20,000,000, States banks' sterling assets over liabilities, and Irish banks £10,000,000; Australian Lon- or vice versa, arises, however, essentially don funds probably fell £15,000,000, while from swap operations. In the absence of the banking funds of the Scandinavian coun- any material change in market rates in Lontries were drawn down by an amount which don and New York, these balances tend to may be estimated at £20,000,000-£25,000,000. move with changes in the forward dollar- If other sterling-area countries not included sterling rate. When there was a discount on in the graph be added, such as Portugal, the the forward dollar at the end of 1934 the Argentine, Japan, etc., it is certain that the amount of American swap money in London drain on this account was fully £120,000,000 was very large. The excess of American over the eighteen months. In contrast to the banks' sterling assets over sterling liabilities period 1928-29 new loans to sterling-area (covered forward) was about £40,000,000. countries have played but a minor part, such Early in 1935 this swap money disappeared from London and, indeed, in the middle of loans as have been given being generally 1937 American banks had excess sterling offset by regular sinking-fund and other reliabilities of about £10,000,000. The decline payments. of the premium on the forward dollar in Lon- The primary cause of the decline in these don to below Y2 per cent in the middle of 1938 sterling reserves was the worsening of the caused a fairly considerable movement of balances of payments of sterling-area coun- American swap money to London. In June, tries with other countries than the United July and August 1938 the sterling assets of Kingdom. It should, however, be remem- American banks in excess of their sterling bered that for the British market there was liabilities was around £10,000,000, while some compensatory gain arising from the their net contracts for forward sales of sterfact that the fall in commodity prices, which ling rose above £15,000,000. With some caused the difficulties of the primary produc- English banks offering 1 or 1^ per cent on ing countries, allowed British imports of certain amounts of foreign deposits the net foodstuffs and raw materials to be obtained yield, taking into account the loss on the f ormore cheaply—according to the Board of Trade the average value of British imports was 6 per cent less in 1938 than in 1937. Three months Forward Premium on Dollar in London. To some extent the reduction of sterling Weekly averages, in percentage per annum. assets was also due to the conversion of re- 2.50 i j 2.50 serves into dollars and gold, e. g., the gold 2.25 2 25 holding of the Sveriges Riksbank increased 2.00 A.I...2,00 by about £15,000,000 in 1938, £2,000,000 1.75 1.75 were bought by the Irish Currency Com- i / 1.50 . 1/ 1 50 mission and £3,000,000 by the Norges Bank. 1.25 V 1.25 In so far as these countries have a surplus in their balance of payments it is natural 1.00 f 1.00 that they should acquire part of the current 0.75 / \ 075 gold production, but the concentration of the 0.50 0.50 purchases at periods of strain on the gold 0.25 0 25 market, when the price of gold was excep- 0 i i i i i 1 9 i 3 7 i i t i i II hll 193 1 8 1 hi i i 1 93 i 9 i i 0 tionally high, may be taken as striking evi- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

764 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 ward rate equivalent to % or V2 Per cent, was Swap transactions undertaken in response about % per cent, i. e., far higher than could to the development of differential interest be obtained on three-months' investments in rates may be generally considered a stabiliz- New York. With the abrupt rise of the pre- ing factor in the exchange markets, but in mium on the forward dollar in September 1938 the effect of the movements of foreign 1938 such transactions became unprofitable swap money in London was largely to postand swap money was withdrawn as the con- pone pressure on sterling from the summer tracts became due; by the end of the year to the autumn, that is, to the time when the American banks had excess sterling liabil- strain for other reasons was at its greatest. ities of £8,000,000. From September to the end of the year the Other swap money in London was at times three-months' forward discount on sterling of greater importance than American. The vis-a-vis the dollar fluctuated between one premium on sterling in Paris has moved and two per cent per annum, i.e., sufficient sharply in recent years, reflecting changing to be attractive to English banking funds, views as to the future of the French franc even with market rates in New York down rather than differential interest levels. In to zero. May 1938, after the spot rate of the franc It has already been remarked how busihad been allowed to fall to 179, the contrac- ness balances in New York were reduced tion of the forward premium on sterling in during 1933 when the dollar was depreciat- Paris was accompanied by a reduction of ing—and have since been reconstituted. A French swap money in London. In July and transfer from London of trade balances of August, however, the forward franc weak- a somewhat similar nature occurred in 1938. ened and French swap money returned to To some extent this type of transfer takes London; but in the middle of August these place through commercial channels, i.e., the transactions were officially discouraged and, proceeds of British exports in foreign curin the absence of a demand for forward rencies are left abroad while imports are francs by French banks, the discount widened increased and paid cash or in advance. In sufficiently to be attractive to large firms other countries, where it has been possible with liquid resources. At certain times of to make estimates, it has been found that the year French swap money in London this commercial factor is of greater imporamounted to £30,000,000 or more. Belgian tance than is usually imagined, amounting swap money in London has also been impor- roughly to the equivalent of a half of one month's turnover of foreign trade. This relationship would give an amount of, say, Three months Forward Premium on Sterling in Paris. £50,000,000 for England. This figure may Weekly averages, in percentage per annum. appear on the high side but account must 22 be taken of the growing importance of in- -1 - 20 20 ternational corporations with large liquid 18 . H i - 18 resources which may be shifted from market A ..;;.„ to market. 16 16 A- - \ Moreover, a large part of the world's trade, 14 14 in addition to that in which England is in- 12 12 volved as a partner, is conducted in sterling. Y\j\'W' 10 A M 10 When sterling declines for a prolonged period exporters from foreign countries are na- 8 V / \ 8 turally disinclined to make invoices in sterl- 6 / 6 ing, and there is evidence that in these A 4 countries, and even in countries of the sterling area itself, foreign trade contracts 2 V 2 have been expressed less often than usual n i. i ,, i i 11 i 1 1 1 1 1 I 1 Q in sterling but rather in the home currency 1937 1938 1939 of the exporter. This fact has greater significance than at first appears for, imtant at times and changes in market rates in mediately the change in invoicing is made, Brussels, particularly the call-money rate, sterling balances accumulated in readiness are strongly influenced by the discount on to meet maturing trade contracts are released forward belgas and the amount which can and may be exported—or when utilized are be earned in London on banking funds. not reconstituted as they otherwise would be. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

765 SEPTEMBER 1939 FEDERAL RESERVE BULLETIN Foreign exporters have sometimes used an- liar to the countries concerned. While longother technique, giving, as usual, credit in term rates continued to decline in the United sterling, but obtaining immediate banking States and some other countries, the French advances in sterling, the proceeds of which market in particular showing a notable downwere converted into dollars or gold, the ad- ward adjustment, long-term rates in Engvance being later redeemed from the im- land have risen steadily for four years from porter's payment. about 2% per cent in 1935 to just above 3V2 All in all, if the period from the middle of per cent at the present time, and the spread 1937 to the end of 1938 be taken, the decline between short and long-term rates has grown of sterling-area reserves and of business bal- wider. With one or two exceptions, internaances in London must have caused a profound tional movements of funds have had little instrain on sterling, although transfers of funds fluence on interest rates. The business recesfrom and to New York and Paris at times sion and political disturbances arresting the dominated the exchange markets. flow of private capital into new enterprise A year ago it was possible to say that trade tended further to depress rates to low levels. financing in the sterling and dollar areas was Capital markets are dominated more and back to normal proportions and conditions. more by government borrowing for arma- The setback in the value of world trade nat- ment purposes. urally brought with it a decline in the amount Though actual movements of rates have of necessary finance. In addition, terms of been slight during the year, many highly incredit have tended to be shorter, so that the teresting developments have occurred, bringtotal volume of trade financing outstanding ing to light tendencies of profound signifihas fallen more sharply than trade itself. cance for the credit structure of the various American exporters to Europe have consider- countries. ably shortened the usual terms of credit, insisting in many cases on cash payments—a 1. CENTRAL BANK CREDIT AND SHORT-TERM factor which has enhanced the effect of the INTEREST RATES export surplus of the United States. As in 1937 when the cumulation of busi- The field of new short-term credits, other ness activity to boom conditions was not rethan those directly connected with foreign flected in changes of bank rate, so in 1938 trade, has remained restricted. As in recent international political crises left rates still at years, new money for long-term foreign issues very low levels. Nineteen of the twenty-five was almost negligible in amount in 1938 and central banks had discount rates unchanged for the principal creditor markets was ex- during the year, while five banks decreased ceeded by repayments and repatriations of old their rates and there was only one increase loans by the debtors. While new long-term on balance. issues on foreign account remain on the same The one European official discount rate low plane as in recent years, repatriations which was higher on balance was that of and redemptions by the debtor countries have the National Bank of Belgium, which in May continued. During the past five years some 1938 made an energetic defense of its cur- $800,000,000 has been utilized for the pur- rency against the violent outflow of funds chase of foreign securities in the United from the country after the abrupt deprecia- States for repatriation or redemption, largely tion of the French franc to 179 to the pound. by such countries as the Argentine, Belgium The various measures taken included the and Finland, which borrowed heavily at high doubling of bank rate from 2 to 4 per cent rates of interest in the 'twenties. and the application of a program, in cooperation with the important credit banks of the country, designed to prevent any ex- THE TREND OF INTEREST RATES tension of credit not justified by commercial Exceptional liquidity, both institutional needs, as business activity was declining and and of private individuals, is the order of the prices falling. day, and short-term interest rates generally The defense thus adopted resolves itself remain at extraordinarily low levels or are into the observance of two fundamental prinstill declining. In the United States a nega- ciples : tive rate of interest has made its appearance. (i) to give out gold against cash (cur- The increases of rates in Belgium in the rency) without restriction, but spring of 1938 and in New Zealand late in the (ii) to make cash scarce, i. e., make it year are attributable to circumstances pecu- difficult and expensive for anyone who does Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

766 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 not hold cash to obtain it. This involves an increase of bank rate and a restrictive credit London Market policy—or at least strong resistance to an Short-term Investments Available. Yearly averages in, millions sterling. expansion of credit dictated by speculative 1200 1200 motives. Within a few days after the adoption of 100.0 1000 these measures the attack on the currency faded away, in ten days the credit measures were relaxed and twenty days after the origi- 800 800 nal increase bank rate was reduced from 4 to 3 per cent, so that any slight inconvenience 600 :=z=zzzzz=:C5mmerciaT Bills of Exchahge=z=z=z=: 600 which might have been caused to ordinary business could have been only of a temporary kOQ ^00 character. Further decrease of bank rate was postponed by the repercussions of the international political events of the summer 200 200 and autumn, but a reduction of 2^ per cent was made in October 1938. On April 17, 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 ° 1939, however, bank rate was again increased B.R.I. 32 2. to 4 per cent. Averages of Treasury bills outstanding issued by tender for the fiscal years ended 31st March are plotted at the end of the previous September; Conditions on the London money market the figures of home and foreign-drawn commercial bills outstanding are calculated from stamp-duty receipts according to the method used were practically unaffected by the large out- by Messrs Jessel, Toynbee <& Co. and reproduced in the London "Economist"; the clearing banks' loans to the stock exchange are from flow of funds and the business depression. the Macmillan Report and are available only to 1931. These factors, indeed, offset each other somewhat as falling prices and the liquidation of The volume of "tender" Treasury bills, stocks released funds for other employment, which gives a rough idea of the bills availwhile the exodus of capital withdrew money able for non-official investors, has fluctuated largely employed at short term. An impor- around £500,000,000 during the ten years in tant factor in preventing disturbances on spite of the issue of bills to the market to the money market was, of course, the well- finance the holding of gold by the Exchange known mechanism of the Exchange Equaliza- Equalization Account. There has thus been tion Account which, with a minimum of fric- a reduction in the amount of bills outstandtion, restored the amount of cash required ing for the needs of the Treasury, a reduction by the banks. The offsetting operations of due to deliberate policy aiming at keeping the the Account help to explain why there was floating debt within certain limits. Consolicomparatively little change in short-term dation loans have been issued from time to money rates, but the reason why they re-time and the proceeds from long-term govmained so persistently low in London (as in ernment issues for other purposes have been some other centers) is to be found in theapplied in the first instance to reduction of abundance of liquid funds at a time of little the floating debt (expanded again later as demand for accommodation from business the money was utilized). The usual expangenerally. Bank rate has stood at 2 per cent sion of tender bills over the autumn and winfor nearly seven years, while the discount ter (due to the seasonal movement of the on Treasury bills has varied from y% perbudget deficit) did not take place for 1938-39, cent only for short periods—and a level as but there was a steep decline from £585,- "high" as this has been maintained only by 000,000 in June 1938 to £350,000,000 in co-operation in the market. March 1939—the lowest point since the war. In the London money market the available This contraction was due in the first place to the issue of a government long-term loan for material for short-term investment has de- £80,000,000 in June 1938 and later to the clined considerably during the past ten years. great efflux of gold, the holding of which had Banking funds may be utilized for financing previously been financed with Treasury bills. gold movements and in swaps, but the essential material for short-term investment con- The decline in commercial bills outstandsists of bills—bills of exchange financing ing is primarily associated with a long-term home and foreign trade and bills financing change in methods of financing, direct credthe Treasury's requirements. The decline in its having largely taken the place of bills the volume of this material is illustrated in while commercial and industrial firms finance the graph. themselves from their own resources in a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1939 FEDERAL RESERVE BULLETIN 767 much larger degree than formerly. Before fell sharply on the stock exchange. In pres- 1914 the volume of commercial bills outstand- ent circumstances the disappearance of ing was roughly double the present figure, smaller firms from the market has been an which includes, incidentally, some £40,000,- unavoidable process. That the larger com- 000 bills frozen under standstill agreements. panies have been able to maintain a satisfac- Loans to the stock exchange formed only a tory earning power even in the adverse convery small proportion of the assets of the ditions of recent years is disclosed by their clearing banks in the 'twenties, and the total published accounts. outstanding is doubtless much less at the The New York money market in 1938 prepresent time than it was ten years ago. Total sents a picture of unprecedented monetary credit facilities granted to the stock exchange ease due to the combination of a rapid acand directly by the banks to private persons cumulation of funds and a reduction of norfor the purpose of holding securities are not mal outlets. The excess reserves of all memknown and must, of course, be much greater ber banks were increased by $760,000,000 than the loans from the clearing banks to through the cut in reserve requirements made brokers and dealers. in April 1938. Secondly, the continued re- The shrinkage of available material for cession of business activity in the first half short-term investment coincides with a of the year, falling prices and the liquidagrowth in demand. The total deposits of tion of inventories were accompanied by a the original ten clearing banks, which in ad- reduction in the banks' commercial loans dition to the 10 per cent cash maintain gen- which continued until August. The influence erally some 20 per cent of short-term assets, of the vigorous upturn of business activity have grown from £1,843,000,000 in Decem- in the second half and of seasonal cropber 1928 to £2,172,000,000 in December 1938. financing movements was almost wholly off- If the theoretical 20 per cent were rigidly set by the continued repayment of old loans, applied, these deposits would now need a confirming experience of the past that busibacking of some £430,000,000 bills held di- ness concerns themselves, after a recession, rectly or indirectly (through loans to the are usually in possession of sufficient funds discount market). The suggestion has been to finance the first stages of expansion. made that in order to facilitate the mechanics Thirdly, imports of nearly $2,000,000,000 of the banking system and the money market gold increased both deposits and reserves of the Treasury-bill issue should be increased. member banks, except for $500,000,000 added But the danger of a large government floating to the unused "free" gold of the Treasury. debt especially at times of political tension Concurrent with this great increase in the is so great that the wisdom of making such supply of funds there was an appreciable an increase, unnecessary as regards Treasury decrease in the paper available for shortfinancing, is to be doubted. It has already term investment. As in any money market been necessary to restrict the circulation of material for such investment is confined to municipal bills, which tended to grow beyond three main classes: short-term paper issued what was desirable. At a time when it has by the government or other public bodies, been found necessary to modify many of the bills for the financing of domestic and foreign traditional customs of the central bank itself trade, and short-term loans to the stock exin order to keep abreast of realities, it is change. In the late 'twenties loans to the natural that the clearing banks should have stock exchange comprised the greater part applied the ratios to which they are accus- of the New York money market, but these tomed to work with that degree of adaptabil- loans have fallen to roughly one-tenth of the ity and elasticity necessary to ensure the former volume, which was then, indeed, far smooth working of the banking system in greater than was desirable. Bankers' acmodern conditions. ceptances and other commercial paper (shown In the discount market itself the supply together as "commercial paper" in the next of bills has been supplemented by the holding graph), although they expanded slightly in of "shorts", i. e., bonds maturing within a the boom of 1937, have at present roughly few years. This is not a new practice and one-quarter the volume of ten years ago. was current even before 1914, but it has And, as in other centers, changes in methods been greatly extended in recent years. That of financing trade, particularly the replacethis involves certain dangers was exempli- ment of bills by direct credits, seem to refied in September 1938 when "outside" veal a long-term trend unfavorable to this money was scarce and the bonds themselves type of paper. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

768 FEDERAL RESERVE BULLETIN SEPTEMBEK 1939 Thus the money market of New York, as these influences was a further sharp reducindeed money markets all over the world, tion of interest rates, already abnormally low, has come to rely more and more on the short and a further piling-up of idle balances. (and medium) term issues of the govern- The reduction of interest rates, particularly ment. those at very short term, continued until, near the end of December, the yield on Treasury bills disappeared completely and New York Market the extraordinary phenomenon of a negative Short-term Investments Available. rate of interest made its appearance, not End-of-year figures in million dollars. only for bills already on the market but even for new issues; in other words, the Treasury had no interest to pay on its borrowing but received a premium on the issue. The chief reason for this, other than "window-dressing" by the banks, was the demand for short-term tax-exempt securities to reduce tax liabilities on State tax dates. Further, market quotations of Treasury notes were distorted by the value of prospective "rights" given by maturing notes in connection with subscriptions to new issues of government securities. Thus certain notes rose to one or two per cent above the price which would have been equivalent to a no-yield basis. This one or two per cent premium was considered the value of the "rights" to obtain a hundred per cent allotment of the bonds or notes offered in exchange at maturity. The new plan of financing government expenditure in Germany announced by the President of the Reichsbank in March 1938 aimed at curtailing the expansion of centralbank credit and at the covering of govern- 1927 1928 1929 1930 1931 1932 1933 193^ 1935 1936 1937 1938 ment needs from current revenues and savings received through the issue of government loans. Some elasticity was given to Although this graph has been drawn up this system through the possibility of part on similar lines to that given for London, some warning against too close a comparison payment on contracts by a limited issue of is necessary. The figures for loans to the delivery bills of six months' maturity, not, stock exchange are comprehensive for New however, rediscountable as were the old "spe- York but not for London, while the inclusion cial" bills, the issue of which ceased after of U. S. Treasury notes with one year or March 1938. As the special bills, of sixless to run (in addition to three-months' months' maturity, fell due for payment (by Treasury bills) has no counterpart in the the latest in September 1938) they came back English graph. As the London market has through the banking system to the Reichsheld "shorts", so Treasury notes with longer bank, which took over the responsibility of than one year to run have been held in New administering such bills as had not been liqui- York. (Total notes outstanding amounted dated and of gradually funding them during to $8,500,000,000 at the end of 1938, includ- the next few years in the form of long-term ing those with one year or less to run.) loans. Some of the special bills were replaced The reduction in the volume of Treasury by "block bills", a form of consolidation, but notes and bills in 1938 was due partly to the volume treated in this way has not been continued conversion to longer-dated maturi- published. In the meantime the new delivery ties and partly to repayments from desteri- bills were issued from April 1938 onwards at lized gold, the latter operation having the the rate of about RM 500,000,000 a month, double effect of increasing the member banks' so that at the end of the six months to October cash and reducing the outlet. The result of RM 3,000,000,000 were outstanding, of which Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

769 SEPTEMBER FEDERAL RESERVE BULLETIN RM 2,000,000,000 had been taken up by the 2. CAPITAL MARKETS AND LONG-TERM INTEREST monthly-reporting banks as shown by their RATES returns. Nowhere have government borrowing and Under a new finance plan announced in spending assumed greater proportions than March 1939 no more delivery bills are to be in the United States where a considerable issued after April 1939, but from May 2, 1939 budget deficit has been running since 1930. onwards payments will be made partly in The resultant of the budget deficit and the cash and partly in tax certificates. This ap- movements of extra-budgetary funds is the plies in the first place to contractors working cash deficit (or surplus) of the Treasury to for the government, the States, municipali- be covered by securities issued to the market ties and associations of municipalities, the or by fluctuations in the General Fund. The government railways and roadways and the cash deficit practically disappeared from the postal administration; additions to this list third quarter of 1937 to the first quarter of may be made by the Finance Minister. Sixty 1938, in fact, in the twelve months to March per cent is to be paid in cash and forty per 1938 the Treasury's cash needs were wholly cent equally in two types of tax certificates. covered by cash income. These certificates enjoy a limited legal tender The Treasury's policy of placing the debt in that they may be given by the recipients in upon a long-term basis was continued in 1938. payment up to 40 per cent to sub-contractors In spite of the increase of the total, under 40 or suppliers working directly or indirectly on per cent of the publicly-offered debt now magovernment contracts. The first class of cer- tures in less than five years (against 60 per tificates may be used at their nominal value cent and over, a year or two ago), while 15 for payment of taxes after six months but per cent matures after fifteen years. Also may, alternatively, be held as an investment there is no large amount of issues maturing for longer than their six-months' term, in or callable in any single year as was prewhich case they carry certain privileges re- viously the case. This improvement in disgarding future taxation payments. The sec- tribution has been accompanied by a reducond class of certificates may be presented in tion in the average interest on the debt from payment of taxes only after three years at about 3% per cent in 1930 to 3 per cent in 112 per cent but may, in the meantime, be 1934 and 2V£ per cent at the present time, utilized as collateral for bank (including reflecting the substantial decline in the gen- Reichsbank) loans. As the financing possi- eral level of interest rates during this period. bilities offered by the tax certificates are to The decline in long-term interest rates has be made available to the Reich alone, the not, however, had the stimulating effect on States, municipalities and public bodies men- private capital issues that might perhaps have tioned above must purchase from the Reich been hoped for and expected. Total issues of with cash the tax certificates they issue. At new capital for American corporations, some the same time it was announced that, in order $500,000,000 per annum in the late 'twento leave the resources of the capital market ties, fell below $200,000,000 in 1933-34 and, available for increased private financing, after rising to $1,200,000,000 in each of the long-term Reich loans would in future be years 1936 and 1937, declined again to $850,issued only exceptionally. 000,000 in 1938. The apparent suspension of the flow of new capital into private enterprise The increases made during recent years in is one of the most striking phenomena of the official discount rates are exceptional and past few years. It is true that borrowers cheap money remains the general rule on the often attempt to make issues directly by privarious markets. With certain exceptions vate treaty, circumventing the regular issue the same tendency is found in long-term in- market and thus avoiding the expenses of terest rates, despite the growing demand by public issue and the control of the Securities governments to finance increased armaments and Exchange Commission. Moreover, the and other exceptional expenditure. By the commercial banks are empowered to make fact that commercial banks in a number of time loans of from five to ten years. But even countries hold large amounts of government taking into account the increasing imporbonds and also tend to increase their ad- tance of these factors in recent years, there vances against mortgages, a closer link is can be little doubt that the productive utilizabeing established between the money and cap- tion of new capital by private enterprise is ital markets. only a fraction of what it was a decade ago. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

770 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 The accompanying graph shows the in- cently taken place, and a number of imporcrease in the yield of British Consols during tant companies have increased the interest the last four years, the flat yield and a yield paid on tax-free deposits or "shares" from calculated to allow for deduction of income 3 to 3!/2 per cent, while in some cases the tax at the standard rate. limits on individual holdings have been raised. The building societies are, however, gradually reaching a point where they will Long-term Government Bond Yields need no new money, as the increased volume in percentages. of repayments of old loans approaches the I I | I 1 | i 1 | 1 1 volume of new loans made. This question raises the problem of an outlet for the savings 3.50 British2'A percentConsolsA"^ / 3.50 previously absorbed by the expansion of the _ building industry. Increased government 1 loans may, of course, in present abnormal cir- - 3- f\ 3- cumstances be a most important factor. But • ^ USTreasury Bonds - it is not inappropriate to mention here the \ /\- role of investment trusts, especially of "unit \ 2.50 \ \ 2.50 trusts", which have grown in importance in 'British 2 Vz percent Consols recent years. From the beginning of the / .adjusted - movement some eight years ago the sale of 2 /V*,/v 2- "units" in seventy odd trusts exceeds £80,- 193^ 1935 1936 1937 1938 1939 Bffl-32 000,000. These trusts, which provide for comparatively small holdings the possibilities For comparison with the trend of Amer- of "risk-spreading" previously only available ican rates, the average yield of all U. S. to the large investor, are notable particularly Treasury bonds with more than twelve years as a method of canalizing small savings into to run is also given (these bonds having im- equities. The idea, originally American, portant tax-exemption rights). Comparison might, if developed in the United States, proof the actual yields is difficult and apt to bevide a means of deflecting part of the flow misleading, but the trends are easily seen. of small savings in that country, which at Although parallel movements are shown in present goes automatically into government the autumn of 1935 and early in 1937, these bonds. were short lived. For four years the longer The capital markets of the world, almost trends have been in opposite directions. without exception, are dominated by govern- An interesting sidelight on the differences ment borrowing for armaments and other of speed with which changes of interest rates economically unproductive purposes. Compenetrate the various parts of the economic parison with the period of high business acsystem is given by two significant changes of tivity ten years ago gives a striking contrast. rates, in opposite directions, during the year At that time the internal debts of governunder review. While the fall of the yield on ments were falling and the markets active government securities from 5 per cent in 1931 with the flow of capital into private enterto 2% per cent in January 1935 was taking prise. Now the governments of the world place, life assurance companies generally are spending over $1,000,000,000 a month maintained their premiums unchanged for more than their revenue from taxation, while new business, being aided to some extent by private issues for productive investment have favorable mortality experience. But the fallen to a fraction of what they were in the lower interest earned on insurance funds is progressive years 1926-29. naturally exerting its influence and from January 1939 (four years after the decline in in- DEVELOPMENTS IN CENTRAL AND COMMERterest rates had ceased and was reversed) a CIAL BANKING group of leading life assurance offices an- All European central banks felt the effects nounced increased premiums for new non-of the international political crisis of Sepprofit business, the increase amounting in tember 1938. September brings the conclugeneral to rather less than 5 per cent on thesion of the harvest season and the marketold rates. While insurance companies find ing of crops and, being also the end of the it necessary to take account of relatively quarter, when rents and many other regular lower interest rates, building societies are payments are made, this month is normally already affected by the rise which has re-one of monetary expansion (in some coun- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

771 SEPTEMBER 1939 FEDERAL RESERVE BULLETIN tries even greater than in December). In steady adaptation of central-bank technique 1938, superimposed on these normal factors, to changing circumstances. While the funwere the monetary effects of the grave inter- damental principles of central banking have national political crisis which led to the been little modified by the events of recent agreement of Munich. years, the evolution of technique must con- These abnormal influences were greater in tinue to keep abreast of realities. some countries than in others but in the in- The increased liquidity of commercial ternal credit field may be described as (a) banks which is found in the great majority an urge for greater liquidity not only by of countries reflects—at least in part—a debanks but by individuals and firms who felt cline in the demand for short-term credits the need of higher cash holdings which, in by industrial and other enterprises; it natan emergency, might be utilized more easily urally induces the banks to seek opportunithan deposits, and (b) the necessity of ex- ties for new business in other lines of lending traordinary government expenditure in ex- and investment. In doing so they generally cess of current revenue at a time when the meet with a keener competition from such short-term government debt floated uneasily. institutions as savings banks and insurance These factors naturally resolved themselves companies, which often find difficulty in ininto pressure on the central bank as the vesting the larger amounts at their disposal lender of last resort in the internal credit from increased savings by people with relamechanism and as source of the currency tively moderate incomes. In fact, the discirculation. The extent of the calls on cen- tinction between the activities of different tral banks may be appraised from the ex- kinds of financial institutions has become less ceptional increases of the note circulation clear in recent years. While the commercial in various countries. These increases tended banks generally hold more government seto be greatest in the smaller countries (40 curities and have thus become more akin in per cent or more in Hungary, Latvia and type to savings banks and insurance com- Czecho-Slovakia), but in Germany there was panies, the latter have increasingly turned to a rise of 17 and in France of 22 per centinvestments in mortgages to supplement the (against 2 per cent in each case in 1937). In smaller yield on their security holdings. On Italy the increase was of 13 per cent. the whole the relative importance of commer- The acute phase of the crisis lasted, how- cial banks in the financial structure of many ever, for only a few days, and in most coun- countries has tended rather to decline. In tries relief came suddenly at the end of these circumstances a certain relaxation can September. In October notes flowed back be found in the tendency so noticeable after to the central banks although, in general, 1929 to restrict the operations of commercial leaving the circulation at a somewhat higher banks. And in some countries this change in level than before. The liquidity mechanism attitude is clearly connected with the desire worked with very few disturbances. Only to stimulate long-term investment generally. in Czecho-Slovakia was there a partial restriction of the repayment of bank deposits. CONCLUSION In France bank rate was raised by V2 per cent, and in Poland the "legal minimum" The continuously mounting volume of govof the central bank was temporarily broken ernment expenditure for armaments and through. The mechanism worked with equal other purposes is becoming the predomiefficiency in countries with free and those nating influence in every sphere of economic with controlled currencies. No bank failures life and raises problems of a fundamental were reported and no insuperable technical nature which must be faced in all countries difficulties appear to have arisen in finding whatever their political or economic orientamaterial eligible for borrowing at the cen- tion. Indeed, discussions in government and tral bank. The stock of notes kept in re- other circles, in countries large or small, serve by central banks appeared to be suf- show a striking similarity. The same probficient in every case to meet the extraordinarylems are present everywhere: and it depends expansion. on the stage of development whether they The events of September 1938 were a make themselves felt as present difficulties or severe test of the liquidity mechanism, and as preoccupations about the future. the fact that this mechanism worked in ab- In the depths of the depression men, money normal conditions with so few disturbances and machinery were unemployed; the probcan be imputed in part to the continuous lem was to make active use of existing pro- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

772 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 ductive capacity, and, even after the state of volume of international trade should be posactual depression was overcome, unemploy- sible without creating a clash of interests ment in many countries remained high and between different countries, since the need prosperity was sectional rather than all- for more exports is born from increasing round. It seemed that not only were gov- imports. The problem facing all countries ernments bound to utilize the available capac- is to find the right relation between producity in order to employ labor, but almost un- tion for home needs and for export purposes limited possibilities were at their disposal and to adapt the latter production to the refor increasing home production. According quirements of the importing countries, which to differences in economic position and na- under the influence of the growth of home tional temperament attention converged on production may have changed greatly from extending the home market or producing at what they were before. However, as events home an increasing part of what was pre- show, even the tendency to increased self-sufviously obtained from abroad. Moreover, ficiency is not necessarily inconsistent with an ever-increasing proportion of the coun- an intensification of w7orld trade. try's capacity was used for types of produc- But the acutest problem which arises in tion which did not serve directly or indirectly every country where the limits of productive the needs of the consumer. capacity come in sight and which remains It now appears as if the period in which the same, whatever the political or economic the countries in the old world have to cope structure may be and whatever the finanwith the problem of excess capacity is near- cial and economic methods with which the ing its end; in some countries it has already problem is met, is that a canalization of probeen definitely passed. In almost all coun- duction from its natural purpose of serving tries the governments are forced to attach the needs of the consumer must have an more importance to foreign trade by the in- influence on the general standard of living. evitable logic of facts: increased home pro- It must lead to a reduction of that standard duction, whether it aims at supplying the as soon as the needs of non-economic prohome market with more goods or with goods duction (including production of those exformerly obtained from abroad, tends to lead ports required to cover the increase of imat a given stage to more imports. And pro- ports necessitated by non-economic producduction for non-economic purposes has in tion) can no longer be fulfilled by a net inthis respect a still greater effect. In each crease of economic activity. Whether this country, therefore, part of the productive effect is reached by the price-raising incapacity must be reserved for the manufac- fluence of inflationary financing or by the ture of goods for export. The variety of absorption of purchasing power through methods used to further exports illustrates taxation or government borrowing is, of the prominent place now given everywhere to course, by no means irrelevant. The psyquestions of foreign trade—a development chological and social effects are very difwhich strongly contrasts with the concentra- ferent. But the influence on the standard tion on domestic measures of recovery during of living in all cases must inevitably be the years 1932 to 1937. An increase in the adverse. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

773 SEPTEMBER 1939 FEDERAL RESERVE BULLETIN ANNUAL REPORT OF THE GERMAN REICHSBANK The Annual Report of the German Reichs- the existing agencies and mobilizing new bank for the year ending December 31, 1938, ones, by rationalizing methods and means of was submitted on June 30,1939, to the general production, and by taking other measures. meeting of the shareholders by the President More than in previous years it became eviof the Bank, Dr. Walther Funk. The main dent that Germany, by the intensity of its text of the report is given in translation economy, occupies a special position as combelow.1 pared with the other leading industrial coun- During the entire year under review Ger- tries which, despite increased armaments, many was under the influence of world his- suffered from considerable fluctuations. Fortorical events. The struggle of our Fuhrer eign trade, which was extended to several Adolf Hitler for Germany's military and eco- neighboring economies supplementing the nomic independence and his appeal to the German economic structure, assumed more German people to prepare for sacrifices led importance than formerly despite the efforts to an overwhelming success in the peaceful to build up the bases for domestic raw materealization of the concept of a Greater Ger- rials. Foreign trade played an important many. Due to the increase in population, part in supplying raw materials. Due to the space for living, and economic potentialities volume and constant steadiness of demand arising from the realignment of Europe, the for these raw materials and in spite of politi- Third Reich has gained a new and broader cal tension and keen competition in world basis for the fulfillment of the tasks devolv- markets, which caused a decrease in German ing upon it in consequence of its position exports and resulted in a negative merchanin Central Europe. dise balance, the German economy was doubt- The course of economic events in the year less enabled to give considerable support to 1938 was, of course, decisively influenced by world trade which on the whole had abanpolitical developments. The economy, which doned hope for stimulation from within. has developed more and more into an effective With this enormous expenditure of ecotool of the Government, was faced with an nomic and military strength by the German abundance of special tasks which in impor- people the task of regulating financial matters tance and scope far surpassed those of pre- was of special importance. Without being vious years. Military needs and the continua- disturbed by fluctuations of foreign currention of the Four-Year Plan, together with cies and by manifestations of outflow of capithe demands arising from current activities, tal, which repeatedly left their imprint on the called for extraordinary efforts on every international monetary situation, the Govhand. ernment of the Reich and the Reichsbank, Immediately after the political annexation with all the elasticity ojf individual measures, of the districts of the Ostmark and the Sude- held fast to their principles of monetary politenland which, because of their industrial cies recognized as right and appropriate. character, had in part suffered from serious Because stabilization of the currency remains unemployment, they were incorporated into further an indispensable condition for the the huge work program of the German econ- stability of the economic life sought by the omy, but, naturally, they have not yet been Government, and since the usual means emable to reach the same level of employment ployed by the bank of issue necessarily could as the old Reich. In the latter, production, not suffice to stem the undesirable effects of turnover, and especially investment activities credit expansion carried on within the last were accelerated and expanded far beyond few years, supplementary measures, espethe volume of the previous year. Coupled cially in the field of wage and price superwith this was an increase in national income vision, continued to be of considerable imand a growth in savings which, together portance. with the higher revenue from taxation, served Credit policy.—Deliberations with regard to satisfy the undiminished financial needs to credit policy led to the announcement in of the Reich. last year's general meeting of the Reichsbank It became increasingly urgent to broaden that beginning April 1, 1938, no further spethe scope of German economy by regrouping cial bills (Sonderwechsel) were to be issued for financing expenses of the Reich not cov- 1 The report, available in German, contains in addition tables and charts showing the operations of the bank in detail. For ered by current revenues. Public expendiearlier reports, see BULLETIN for May 1938, 1937, 1936, 1935, April tures were met by current revenue and also 1934, May 1933, April 1932, etc. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

774 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 by the issue of a new type of promissory greatly preferred. Their circulation in Nonote, the so-called delivery certificates (Lie- vember reached the highest level with RM fer ungsschatzanweisungen) with a term of 1,807,000,000. six months, to be redeemed at maturity out of Money market.—The German money marcurrent revenues or by borrowing. When in ket on the whole could be described as liquid. the course of the year—as mentioned before Even though considerable assets of the money —unforeseen tasks of great magnitude were market were tied up temporarily through the added to the already existing ones, it seemed change in the methods of financing and expedient to adjust the manner of financing through the various Reich loan issues, the to these changed requirements. For this rea- success of the great conversion loans and the son a New Finance Plan was decided upon increasing deposits in the banking instituduring the year 1939 which, in accordance tions proved that on the whole the economic with the law of March 20, 1939, for the fi- system showed no scarcity of liquid funds. nancing of the national requirements (Reichs- Except for certain monetary measures of a gesetzblatt I, p. 561) and the appurtenant preparatory character, international political administrative regulations of April 26, 1939 tension had no serious influence on the Ger- (Reichsgesetzblatt I, p. 829), provides for man money and credit situation. The liquidanticipation of future tax revenues of the ity of the money market was reflected in the Reich by means of new tax certificates. low interest rates. During the year under The delivery certificates (Lieferungsschatz- review the private discount rate remained anweisungen) introduced during the year unchanged at the level of 2% per cent estabunder review were put into circulation at lished in the middle of April 1937, and it was once and in this manner found their way subsequently reduced by Vg per cent to 2% mostly to the banks which, in case of neces- per cent at the beginning of May 1939. The sity, had the privilege of borrowing from the average monthly rate for call money was al- Reichsbank against these securities, but most throughout below 3 per cent and in the could not discount them at the Reichsbank. second half of the year sometimes only a The special bills (Sonderwechsel) which, as little above 2^ per cent; the yearly average an instrument of preliminary financing, for a for this rate at 2.79 per cent corresponded to long time had occupied a special place among that of the previous year. the investment securities on the money mar- The investments of the Reichsbank in bills, ket, therefore were no longer available to the securities, and Lombard loans increased in money market in their original form. How- the course of the year under review by RM ever, provision was made so that available 2,559,000,000 to RM 9,143,000,000. Correfunds awaiting investment at banks and spondingly, there was an increase in note cirother institutions could be drawn upon for culation by RM 2,730,000,000 to RM 8,223,the unloading of the block of renewable paper 000,000. The entire circulation of means of deposited with the Reichsbank. This renew- payment increased by RM 2,910,000,000 to able paper, until it could be repaid according RM 10,388,000,000 together with a correto schedule out of the Reich's own resources, sponding considerable increase in clearings formed a considerable part of the entire vol- and transfers. These figures in the sphere of ume of short-term credits. Because of abun- money and credit reflect the fact that during dant opportunities for investment the sale of the year under review the territory of the the usual non-interest-bearing Treasury bills German Reich was considerably enlarged and for account of the Reich came at times to an that the German people progressed far in the almost complete stop during the first half of direction of attaining economic and military 1938. Sales increased only in August when security. a new short-term series was issued, the ma- Capital market.—In view of its absorptive turity of which was timed with that of the power the capital market during 1938 formed delivery certificates. A lively and undimin- again an indispensable complement to the ished demand existed almost during the en- credit system in financing the requirements tire year for private as well as for Treasury of the Reich. Despite political tension the bills. During the second half of the year supply of monetary capital has been growing, only a fraction of the authorized maximum which is gratifying and at the same time is of RM 400,000,000 of the Treasury bills was an expression of confidence of the German used by the Reich. Being an especially liquid people in their Government. In this manner investment, the promissory notes (Solawech- the capital market was enabled to fulfill in sel) of the Gold Discount Bank were again increasing measure its chief function, namely, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

775 SEPTEMBER 1939 FEDERAL RESERVE BULLETIN to make funds available for the execution of regarding foreign exchange has again emthe great national-political tasks. Four new phasized the importance of exports for the issues of the well-known 4^ per cent Treas- German economy and with it the necessity ury bonds of the Reich were released in a total for continuation of the efforts made in mainamount of RM 6,350,000,000. The maturity taining and enlarging markets. The Reichsof the last three issues was extended to 20 bank, either directly or through the German years with the terms of subscription in the Gold Discount Bank, has supported vigormain unchanged. The amount of subscrip- ously the efforts to facilitate the tasks of extions to the loans of the Reich during 1938 porters and to increase an exchange of merreached altogether about RM 8,000,000,000 chandise with foreign countries by various and thus was larger than the total amount measures designed to ease the financing of for the three preceding years. Austria par- exports and by safeguarding the exchange ticipated in the success of these loans. The rate. Austrian banks, partly in their capacity as Under these circumstances the supervision members and partly in their capacity as sub- of foreign exchange, in which the Reichsbank participants in the credit consortium of the participates to a considerable extent, assumed Reich, subscribed to and disposed of a part in additional importance during 1938. Today proportion to the wealth of the country. The less than ever can Germany afford to abandon total amount borrowed for purposes of the this minutely organized supervision, all the Reich since 1935 amounts to approximately more since the world situation, the unsolved RM 15,000,000,000. problem of debts, and not in the least the To satisfy demands for other capital, espe- political tension, continue to stand in the way cially insofar as investments for the execu- of clarification of the international currency tion of the Four-Year-Plan are concerned, situation. The measures taken regarding various stocks, industrial bonds, and deben- foreign exchange extend particularly to a tures issued by public and private institutions sharper control of foreign exchange resources were admitted, although the total amounts on hand or falling due in the future, to a more thus poured into the market remained far be- rigid interpretation of the respective regulahind the amounts of the Reich loans. Under tions, which have gradually become less and the new finance plan future requirements of less clear, and to the inclusion of the new the Reich will not be covered by loans and it Reich territories in the system of supervision will thus become possible for private bor- by the old Reich. rowers to enter the capital market to a Again a great deal of work devolved upon greater extent. the Reichsbank and other monetary institu- Gold and foreign exchange.—A continu- tions with respect to the clearing and transfer ously difficult task was to keep the German agreements, which once more made up the economy supplied with foreign exchange, all greatest part of payments to and from forthe more since the high level of employment, eign countries. Special tasks arose from the the efforts to accumulate adequate supplies, necessity to extend to the new territories and the preparation for other purposes con- those agreements which had been arranged tinued to make heavy demands on foreign previously between Germany and other counexchange. In spite of everything a fairly tries. It became therefore necessary to make satisfactory balance was obtained during the special arrangements concerning transfer year under review between demand and the and clearing agreements with those countries. available supply. Though the most impor- Because the available foreign exchange tant source of foreign exchange—exports— was not sufficient for the needs of the Gercould not be kept at the same level as in the man people, the already existing restrictions previous year because of decreased sales on concerning transfers for the servicing of world markets, it was nevertheless possible the foreign debt had to be kept in force. to increase the volume of imports as com- Diplomatic efforts to reduce interest rates, pared with the year before. Besides profit- which were partly too high, were successful ing from falling prices of raw materials on in some cases. In order to regulate the deinternational markets, this was due to a faulted debt of Austria, which heretofore had series of measures designed to increase the serviced its foreign debt under entirely difforeign exchange holdings. Excellent crops ferent stipulations, separate arrangements during 1938 released for industrial purposes were made, in which the point of view was foreign exchange which otherwise would have taken, however, that the Anschluss did not had to be used for foodstuffs. The situation render valid as against the Reich the legal Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

776 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 claims of foreign creditors arising from in- measures taken in the old Reich toward prodebtedness incurred by the Austrian Govern- tecting the Reichsmark, the management of ment. foreign exchange, the control of exports and The total amount of the Standstill credits of the capital market, as well as the protecwas further reduced during 1938, chiefly by tion of wage and price levels. The Reichspayments of Reichsmarks into the Registered bank, cooperating in these tasks, at all times Account, and, according to the statement of aimed to make decisions without delay so that February 28, 1939, amounted to about RM the economy in the territories taken over 780,000,000. During May 1939 the German would have clear sailing as soon as possible credit agreement of 1939 was signed which and could fall in step with the old Reich. In will run for one year. The outstanding new reviewing it may be said that unavoidable idea in this agreement is the effort gradually difficulties in commercial relations were reto render the Standstill credits less compli- duced to a minimum. cated and more flexible in order to pave the The adjustment of the Austrian Schilling way for a return to> normal and simple credit to the Reichsmark was effected by the regurelations with foreign countries. Such a step lation of March 17, 1938 (Reichsgesetzblatt would also be in the interest of German for- I, p. 253), concerning the introduction of the eign trade. This idea, among others, is espe- Reichsmark currency in Austria, which decially emphasized in the newly introduced termined the exchange rate of 1 Reichsmark supplementary commercial regulations (Re- = 1.50 Schillings. During the transition kommerzialisierung) which, within the scope period both the Reichsmark and the Austrian of foreign trade available for such purposes, Schilling were considered legal tender. The are prepared for those creditors who are regulation issued the same day (Reichsgewilling to grant credits for a term of three setzblatt I, p. 254), concerning the taking over years to take the place of the owing Standstill of the Austrian National Bank, paved the way credits. The procedure used in the commer- for a quick and smooth execution of the shift cial regulations of the German credit arrange- in monetary standard. The management of ment of 1938 was retained since it had shown the National Bank was taken over by the such satisfactory results in the previous year. Reichsbank, which was also charged with the On the whole the tested basic ideas of the old liquidation of the Austrian note issuing inagreements have been carried over. Just as stitution for account of the Reich. At the in the previous year the German Gold Dis- time of the shift from Austrian currency to count Bank, which has become sole debtor for the Reichsmark, a similar shift took place in these credits originally guaranteed by it, credit institutions and in general business again plans to redeem a part of them. The transactions. The executive order of April situation with regard to foreign exchange, 23, 1938 (Reichsgesetzblatt I, p. 405) introhowever, does not even under the new agree- duced in Austria the German currency law, ment permit redemptions in foreign ex- the banking law, and several relevant reguchange, so that as heretofore a reduction in lations. The note issuing privilege of the Standstill credits in the main can be effected Austrian National Bank was abrogated, its only by payment of Reichsmarks into the Reg- notes lost their legal status and were called istered Account. In the German credit agree- in, although an extension up to May 15, 1938, ment of 1939 have been included the stipula- was granted. The shift in the monetary tions set forth in special agreements concern- standard of the Ostmark was completed when ing public Standstill credits, the credits the regulation of May 25,1938 (Reichsgesetzgranted to Austria, and the commitments fall- blatt I, p. 601) caused the Austrian gold and ing under the separate contract with Switzer- silver coins to be put out of circulation. Speland. The credit agreement of 1939 for the cial transitory rules were published concernfirst time includes also the respective foreign ing small coins of base metals. credits of debtors in Sudetenland. The regulation of October 10, 1938 Inclusion of new territories in the sphere (Reichsgesetzblatt I, p. 1393) announced the of German currency.—The inclusion of new introduction of the German monetary standterritories in the German Reich, besides nec- ard in the Sudeten territories and fixed the essitating economic and legal measures for exchange rate at 1 Koruna = 12 Reichspfenthe transitory and adjustment period, also nige. The Reichsbank took over the most immade imperative changes in their monetary portant branches of the Czecho-Slovak Nastandards and made necessary the enforce- tional Bank in the ceded territories, thus obment in these territories of the many safety taining a local base for the exchange of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

777 SEPTEMBER 1939 FEDERAL RESERVE BULLETIN foreign coins into German tender. A second responsibilities, the law gives the President regulation dated October 15, 1938 (Reichs- alone the authority to make decisions. It is gesetzblatt I, p. 1430), concerning the intro- interesting to note that concerning the apduction of the monetary standard in the pointment of employees of the Reichsbank Sudeten-German territories, abrogated the the representative of the Fiihrer is to be conlegality of the Czecho-Slovak koruna in the sulted to the same extent as is the case for territories ceded as of October 31, 1938. The the appointment of other Reich employees. adjustment of the monetary system in the Further regulations of the new law make it Sudetenland to that of the Reich was practi- possible for the President to adjust the percally completed when in November the ex- sonnel of the Bank in accordance with the tensions granted for the exchange expired. special needs of the banking business, but on An exchange bureau was set up to take care the other hand, they insure a broad conformof payments arising from debts between the ity to the general employees and wages law. inhabitants of the Sudeten-German terri- In order to insure direct contact between the tories and those in Czecho-Slovakia. These German Reichsbank and the leading permutual payments were effected at the newly sonalities of German economy and labor, the established rate. new law provides for the organization of an A decree of March 16, 1939 (Reichsgesetz- Advisory Council whose composition and deblatt I, p. 485) ruled that in Bohemia and Mo- velopment is put into the hands of the Presiravia, until further notice, the koruna be re- dent. The capital stock of the German tained as legal tender together with the Reichsbank is to remain the same as hereto- Reichsmark. The regulation of March 21, fore ; however, shares may be owned only by 1939 (Reichsgesetzblatt I, p. 555) fixed the German citizens who, on the basis of their exchange value of the two currencies at 1 racial origin, fulfill the regulations for ac- Koruna = 10 Reichspfennige. quisition of citizenship, as well as corporate bodies and enterprises which have their head- The regulation of March 23, 1939 (Reichsquarters within the area wherein this law gesetzblatt I, p. 565) fixed the exchange rate is valid. Concerning distribution of diviof 1 Lit = 40 Reichspfennige for the Memel dends the law provides that a dividend of territory. not more than 5 per cent shall be granted in Law concerning the German Reichsbank.— future and retroactive for the year 1938, and In his letter of January 19, 1939, the Fiihrer that any profit over and above that—after asked the Minister of Economics and Presidue deductions—shall be turned over to the dent of the Reichsbank, Dr. Walther Funk, Reich. The general meeting shall remain the to bring the transformation of the bank of representation of the stockholders. It shall issue, which had begun with the law of Februreceive the report of the yearly balance and ary 10, 1937, to a conclusion in conformity the report of the Board of Directors, and at with the national socialist principles. Therethe suggestion of the President, it shall defore the law concerning the German Reichscide on the increase in capital stock. The bank was promulgated which once more gives regulations concerning the sphere of activity the Reich the unrestricted sovereignty over of the Bank as well as the note coverage are the bank of issue. The German Reichsbank in agreement with the national-socialist ecoshall be responsible directly to the Fiihrer, nomic concepts in that the stability of the and decisions of special importance to the German currency is not dependent on the currency system, such as the fixing of the existing amounts of gold and foreign exmaximum amount of working credits for the change, but on the fact that the money in Reich as well as the determining of the maxicirculation shall be in direct ratio to the cirmum amount of Treasury bills which the culation of consumption and production goods Reichsbank may hold, are made only by the produced by German labor. The new law be- Fiihrer. In accordance with the national socame effective on June 16, 1939. cialist principles concerning closely defined Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

778 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 BALANCE SHEET OF THE GERMAN REICHSBANK AS OF DECEMBER 31, 1938 AND DECEMBER 31, 1937 [In thousands of reichsmarks] Assets 1938 1937 Liabilities 1938 1937 Gold, not under lien (gold bars, domestic and Total bank note issue 18, 716, 777 16, 724, 325 foreign coins): Credit balances of giro and current accounts.. 1, 527, 469 1, 058, 501 In the cash offices of the bank 60, 201 50, 306 Non-interest-bearing deposits 27 27 With foreign banks of issue 10, 572 20, 334 Original capital 150, 000 150, 000 Legal reserve fund (including transfers from 70, 773 70, 640 net profits of the year) 87, 353 83, 286 Reserve for pension and unemployment fund- 100, 000 80, 000 Cash: Reserve for probable losses 274, 962 241, 962 Reichsbank notes 10, 492, 892 11, 230, 283 Subsidiary coin 116, 453 110,958 Reserves for: Rentenbank notes 16, 778 7,607 Printing of new notes 21, 250 16, 537 New buildings 58, 260 52, 349 10, 626,123 11,348,848 79, 510 Credit balances in foreign currencies (of which the equivalent of 3,179,000! reichsmarks was Special reserve fund for future payments of assigned as cover for the notes in circulation) 29, 544 21, 282 dividends 40, 307 40, 289 Foreign notes 2,336 2,570 Foreign bills and checks 165, 544 166,167 Miscellaneous: Domestic bills and checks: Interest on bills due in 1939 36, 620 43,1282 Treasury bills of the Reich 120, 690 118,590 Dividends due but not yet paid 322 316 Other domestic bills and checks 7, 959, 062 5, 847, 206 Dollar Treasury notes of the Reich to be Silver 31 9 redeemed by the Reichsbank 141 142 Liabilities in foreign currencies 9 2,175 Loans against collateral (lombards), viz.: Unpaid claim of the German Govern- Loans against gold and silver (sec. 21, 3a, ment—contra account 70, 082 70, 082 of the bank law) 1 1 Other book debts 102, 336 53, 494 Loans against securities (sec. 21, 3b, c, d, of the bank law) 19, 731 39, 467 209, 511 169, 338 Loans against bills (sec. 21, 3e, of the bank law) 5,883 1,979 Net profits for the year less 10 per cent as- Loans against goods (sec. 21, 3f, of the signed to the legal reserve 36, 607 36, 074 bank law) 19, 245 18, 846 Loans against Treasury bills of the Reich (sec. 21, 3g, of the bank law) 1 1 44, 861 60, 294 Securities eligible for note cover 565, 052 105, 789 Other securities owned 298, 820 297, 991 Overdue and doubtful claims 1 Land and buildings 30, 000 30,000 Claims resulting from the settlement with the Reich 92, 601 93, 758 Miscellaneous: Bank notes no longer fit for collection 1,238 1,126 Postponed claim on the German Government in virtue of sec. 11, 4, of the law of Aug. 30, 1924, for the liquidation of Rentenbank notes in circulation 70, 082 70, 082 Credit balances with postal check offices.. 48, 168 29, 251 Investments for pension and unemployment fund -.-. 100, 000 78, 892 Reichsmark claims on foreign correspondents 10, 005 8,111 Revolving credit to the Reich 43,100 Claims against the Reich for sinking-fund purchases 22, 460 23, 062 Foreign exchange authorized but not yet delivered 183, 455 120, 880 Government debt C taken over from the former Austrian National Bank 104, 615 Claim arising from exchange of Czechoslovak Currency 306, 746 Other claims 161,717 115,040 1, 217,1 489, 545 Total assets.. 21, 222, 524 18, 652, 689 Total liabilities.. 21, 222, 524 18, 652, 689 i 3,179,000 reichsmarks on Dec. 31, 1937. 2 Interest on bills due in 1938. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FINANCIAL, INDUSTRIAL, AND COMMERCIAL STATISTICS UNITED STATES 779 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

780 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 MEMBER BANK RESERVES, RESERVE BANK CREDIT, AND RELATED ITEMS [In millions of dollars] Member bank Reserve bank credit outstanding Treas- reserve balances ury Treas- Treasury Other cur- Money ury deposits Non- Fed- Date U. S. Gold rency in cir- cash with mem- eral Gov- Other stock out- cula- hold- Federal ber de- Reserve Bills Bills ern- Reserve Total stand- tion ings Reserve posits ac- Excess dis- bought ment bank ing banks counts Total (esticounted securi- credit1 mated) ties End of month figures: 1938—June 30____ 8 1 2,564 23 2,596 12, 963 2,713 6,461 2,303 860 363 261 8,024 2,875 July 31.___ 7 1 2,564 18 2,589 13,017 2,721 6,452 2,348 721 384 257 8,164 3,022 Aug. 31___. 7 1 2, 564 14 2,585 13, 136 2,731 6,504 2,480 720 313 255 8,179 2,941 Sept. 30--.- 8 1 2,563 29 2,600 13,760 2,739 6,622 2,810 853 356 260 8,198 2,869 Oct.31 7 1 2,564 14 2,586 14, 065 2,751 6,700 2,770 535 424 260 8,713 3,227 Nov. 30--__ 7 1 2,564 13 2,584 14,312 2,773 6,787 2, 689 484 574 259 8,876 3,383 Dec. 31 4 1 2,564 33 2,601 14, 512 2,798 6,856 2,706 923 441 260 8,724 3,205 1939—Jan. 31 5 1 2, 574 28 2,607 14, 682 2, 816 6,653 2,776 747 458 255 9, 215 3,644 Feb. 28 4 1 2,564 30 2,598 14, 874 2,824 6,731 2,740 1,148 488 254 8,936 3,387 Mar. 31-..- 4 1 2,564 18 2,587 15, 258 2,839 6,817 2,691 1,229 533 257 9,157 3,559 Apr. 30 3 1 2,571 20 2,595 15, 791 2,849 6,905 2,6S9 931 545 255 9,900 4,098 May 31____ 4 1 2,564 4 2,573 15, 957 2,862 6,967 2,636 920 586 253 10, 029 4,218 June 30 5 1 2,551 23 2,579 16,110 2,881 7,047 2,5P3 944 739 258 10,018 4,140 July 31 5 1 2,488 -8 2,486 16, 238 2,895 7,049 2,360 752 693 257 10,507 4,553 Wednesday figures: 1938—Sept. 7 7 1 2,564 21 2,592 13, 237 2,729 6,579 2,579 561 317 254 8,269 3,034 Sept. 14 7 1 2, 564 25 2,596 13, 421 2,733 6, 550 2,759 346 416 254 8,425 3,131 Sept. 21 8 1 2,564 23 2, 596 13, 588 2,735 6,552 2,833 917 342 261 8,014 2,744 Sept. 28 9 1 2,564 24 2,597 13,714 2,738 6,574 2,816 864 337 261 8,197 2,889 Oct. 5 7 1 2,564 21 2, 593 13,812 2,741 6,640 2,809 770 346 261 8,321 3,019 Oct. 12 9 1 2,564 32 2,605 13, 869 2,744 6,667 2,812 703 376 260 8,400 3,045 Oct. 19 6 1 2,564 17 2,589 14, 008 2,746 6,668 2,770 609 342 261 8,693 3,265 Oct. 26 7 1 2,564 8 2,580 14,051 2,749 6,654 2,767 584 374 261 8,740 3,275 Nov. 2 8 1 2,564 9 2, 582 14,071 2,752 6,706 2,751 576 426 260 8,686 3,217 Nov. 9 8 1 2,564 -3 2,569 14,091 2,755 6,764 2,737 578 531 259 8,546 3,132 Nov. 16-___ 7 1 2,564 18 2,590 14,162 2,756 6,732 2,721 544 525 259 8,727 3,262 Nov. 23___- 7 1 2,564 16 2,587 14, 240 2,767 6,763 2,717 474 563 258 8,818 3,353 Nov. 30---_ 7 1 2,564 13 2,584 14,312 2,773 6,787 2,689 484 574 259 8,876 3,383 Dec. 7 6 1 2,564 20 2,591 14, 367 2,775 6,844 2,681 407 576 258 8,966 3,442 Dec. 14 7 1 2,564 29 2,600 14, 380 2, 784 6,858 2,651 413 551 258 9,034 3,476 Dec. 21 8 1 2,564 84 2,656 14, 454 2,788 6,943 2,677 1,025 514 267 8,472 2,979 Dec. 28-..- 7 1 2,564 39 2,610 14, 508 2,790 6,912 2,707 941 505 265 8,577 3,072 1939—Jan 4 4 1 2,564 35 2,604 14, 565 2,800 6,839 2,725 891 436 258 8,819 3,298 Jan. 11 5 1 2,564 23 2,592 14, 577 2,805 6,716 2,712 873 459 258 8,956 3,436 Jan.18 4 1 2,564 18 2,588 14,615 2,810 5,666 2,726 800 435 256 9,130 3,559 Jan. 25 5 1 2,564 14 2,583 14, 640 2,812 6, 623 2,754 767 470 256 9,166 3,597 Feb. 1 5 1 2,564 13 2,582 14, 694 2,817 6,663 2,770 887 469 256 9,047 3,478 Feb. 8 7 1 2,564 12 2,584 14, 732 2,818 6,673 2,768 931 488 255 9,018 3,459 Feb. 15 5 1 2,564 17 2,587 14, 772 2,819 6,695 2,771 1,250 500 254 8,707 3,166 Feb. 21 4 1 2,564 23 2,592 14, 818 2,821 6,708 2,752 1,181 495 254 8,841 3,298 Mar. 1 4 1 2,564 19 2,586 14, 888 2,827 6,739 2,716 1,168 484 253 8,942 3,382 Mar. 8 3 1 2,564 -3 2,565 14, 923 2,829 6, 751 2,716 1,102 510 253 8,985 3,407 Mar. 15 3 1 2,564 27 2,595 14, 983 2,832 6,751 2,712 1,059 552 259 9,077 3,443 Mar. 22 - . 3 1 2,564 5 2,573 15, 075 2,834 6,758 2,743 1,222 511 258 8,989 3,364 Mar. 29...- 3 1 2,564 10 2,578 15,160 2,837 6,765 2,722 1,201 505 257 9,125 3,519 Apr. 5 3 1 2,564 17 2,584 15, 292 2,838 6,855 2,712 1,103 470 257 9,318 3,708 Apr. 12 3 1 2,564 17 2,584 15, 430 2,842 6,835 2,707 1,015 515 256 9,528 3, 879 Apr. 19 3 1 2,564 23 2,591 15, 605 2,844 6,858 2,723 951 509 256 9,743 3, 998 Apr. 26 3 1 2,564 12 2,580 15, 714 2,849 6,860 2,693 913 516 256 9,903 4,124 May 3 3 1 2, 564 4 2,572 15, 801 2,851 6,915 2,691 936 554 255 9,872 4,084 May 10 4 1 2,564 7 2,575 15, 856 2,854 6,904 2,678 959 521 255 9,967 4,186 May 17-__ 4 1 2,564 8 2,576 15,892 2,857 6,913 2,683 927 543 255 10,005 4,244 May 24 4 1 2,564 8 2,576 15, 927 2,859 6,893 2,646 915 558 254 10,097 4,304 May 31 4 1 2,564 4 2,573 15, 957 2,862 6,967 2,636 920 586 253 10,029 4,218 June 7 3 1 2,564 8 2,576 15, 987 2,864 6,986 2,571 935 630 253 10, 053 4,279 June 14 3 1 2,564 37 2,605 16,027 2,868 6,936 2,570 928 714 253 10,101 4,264 June 21 5 1 2,564 15 2,584 16,060 2,873 6,934 2,566 941 714 263 10,099 4,227 June 28 5 1 2,551 10 2,567 16,093 2,879 6,962 2,559 962 677 263 10,116 4,243 July 5 5 1 2,551 13 2,569 16,136 2,880 7,100 2,577 820 678 257 10,151 4,292 July 12 5 1 2,535 28 2,569 16,174 2,885 7,041 2,552 791 638 257 10, 350 4,447 July 19 5 1 2,515 17 2,537 16,191 2,890 7,022 2,530 764 634 257 10, 412 4,485 July 26 5 1 2,488 19 2,512 16, 227 2,893 7,002 2,506 742 690 257 10, 436 4,485 Aug. 2 5 1 2,453 18 2,476 16, 248 2,895 7,054 2,370 863 662 257 10, 413 4,462 Aug. 9 5 1 2,443 14 2,462 16, 270 2,897 7,070 2,354 844 597 256 10, 509 4,533 Aug. 16 5 1 2,423 25 2,453 16, 335 2,900 7,091 2,366 776 565 256 10, 633 4,590 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

781 SEPTEMBER 1?39 FEDERAL RESERVE BULLETIN PRINCIPAL ASSETS AND LIABILITIES OF ALL FEDERAL RESERVE BANKS In thousands of dollars] Wednesday figures End of month 1939 1939 1938 Aug. 16 Aug. 9 Aug. 2 July 26 July 19 July 12 July 5 July June July ASSETS Gold certificates on hand and due from U. S. Treasury 13, 968, 22113,914, 22013,869,22213, 709, 22213,651,21813,604,71913, 534, 71913869, 21813,514, 71. 10633, 405 Redemption fund—F. R. notes 9,056 8, 594 9,101 9,101 7,722 8,242 8, 412 9,101 8,843 8,937 Other cash . _ _ __ 341, 509 348, 919 349,505 370, 979 356, 076 353,161 317, 756 351, 410 350, 484 406, 282 Total reserves. ._ 14, 31878614,271,73314,227,828 14, 089, 30214,015, 01613, 966,12213, 860, 88714229, 72913,874, 04611048, 624 Bills discounted: For member banks 2 5?7 2,893 635 2,671 2, 572 3,241 2, 613 2, 88C 2,689 7 127 For nonmember banks, etc. 2025 2, 025 2,025 2,025 2,025 2,025 2,025 2,025 2, 025 Total bills discounted 4552 4,918 4,660 4,696 4,597 5, 266 4,638 4,905 4,714 7,127 Bills bought: Payable in foreign currencies 545 545 545 558 556 556 556 545 556 539 Industrial advances __ 11615 11,665 11,746 12, 579 12, 557 12, 496 12, 318 11,869 12, 350 15, 785 U. S. Government securities: Bonds 911090 911,090 911 09C 911,090 911,090 911,090 911,090 911,090 911,090 744, 105 Treasury notes 1, 176109 1,176, 109 1 176,109 1, 176,109 1,176,109 1, 176, 109 1,176,109 1 176,109 1,176,109 1 190, 870 Treasury bills 335540 355, 715 366,220 401, 020 427, 930 447, 938 463, 438 401, 020 463, 438 629, 040 Total U. S. Government securities 2 422736 2,442,914 2 453 418 2, 488, 219 2 515,137 2, 535, 137 2, 550, 637 2488, 219 2,550, 637 2 564, 015 Other Reserve bank credit . 13209 2,428 6 058 5,979 4,196 15,951 554 -19,951 10, 346 1,752 Total Reserve bank credit outstanding___ _._ 2, 452, 660 2 462 470 2,476 428 2, 512, 031 2 537,043 2, 569, 406 2, 568, 703 2 485, 587 2 578, 603 2 589, 218 LIABILITIES F. R. notes in actual circulation 4,563 822 4 550, 689 4 530,715 4, 498, 758 4 508, 962 4, 522, 709 4, 543,177 4 530,099 4 511,116 4 135,314 Deposits: Member bank—reserve account 10, 6334491050900310412 88310, 436, 28610, 412, 04710, 349, 94610,151,05310, 506, 79910,018, 493 8 164, 160 U. S. Treasurer—general account _- 775739 844268 863 462 742, 400 764, 216 790, 596 820, 208 752, 382 944, 078 721, 446 Foreign bank 280665 307298 311 136 287, 657 279, 038 289, 485 297, 265 281, 057 359, 596 123, 549 Other deposits 284585 289237 351 180 402, 454 355,016 348,115 380, 299 411, 705 379, 007 260, 841 Total deposits 11, 974,43811949, 80611938 66111,868,79711810,31711, 778, 14211,648,82511951, 94311701, 174 9 269, 996 Ratio of total reserves to deposit and F. R. note liabilities combined (per cent) 86.6 56. 5 86. 4 86.1 85.9 85.7 85. 6 86.3 85.6 82.4 MATURITY DISTRIBUTION OF BILLS AND U. S. GOVERNMENT SECURITIES HELD BY FEDERAL RESERVE BANKS 11 r< r.hnovand*- of i• linr- Total W 15 i t d h 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 6 th y s s 6 1 m t o y o e n a t r hs 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: July 26 4,696 1,483 194 1,949 618 448 4 Aug. 2 _ _ - 4,660 1,454 155 2,250 367 433 1 Aug. 9 4,918 1,708 218 2,337 331 324 Aug. 16 . _ __ 4,552 1,431 2,053 447 304 317 Bills bought in open market: July 26 558 134 6 95 323 Aug. 2 545 28 47 107 363 Aug. 9 545 6 120 33 386 Aug. 16 _. 545 47 106 83 309 Industrial advances: July 26 12, 579 1,381 757 259 583 1,798 1,855 2,548 3, 398 Aug 2 11, 746 1,297 59 526 331 1,827 2,610 2, 526 2 570 Aug. 9 11, 665 1,218 76 562 371 1,934 2, 437 2,528 2, 539 Aug 16 11,615 1,165 218 553 364 1,804 2 452 2 538 2 521 U. S. Government securities: July 26 - 2, 488, 219 79, 305 83,790 139, 875 85, 550 115,176 296, 068 270, 250 587, 860 830, 345 Aug 2 2, 453, 419 85, 355 85,140 127, 675 68, 050 102, 676 296, 068 326, 576 531, 534 830, 345 Aug. 9 ______ 2, 442, 914 83, 790 77, 625 111, 163 49,137 136, 676 296, 068 326, 575 531, 535 830, 345 Aug. 16 2, 422, 739 85,140 60,625 105, 963 63,137 123,351 296, 068 326, 575 531, 535 830, 345 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

782 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 STATEMENT OF CONDITION OF THE FEDERAL RESERVE BANKS, BY WEEKS [In thousands of dollars] Total 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 - l A an t t - a Chicago Lo S u 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 - ASSETS Gold certificates on hand and due from U. S. Treasury: July 26 13, 709, 222 785, 544 6, 605, 679 663, 719860, 505 334, 740 285, 224 2,189, 264 365, 794 249, 277 343, 714 219, 918805,844 Aug. 2 13, 869, 222 794,194 6, 588,427 692, 640 856, 610 343, 686 312, 620 2, 245, 5375,5, 305 253, 803 383, 430 232, 233810, 699 Aug. 9 13, 914, 220 813,032 6, 536, 417 697, 730886644,, 610 350, 717 316, 217 2, 287, 634617, 940 263, 013 384, 812224, 474 807, 617 Aug. 16 13, 968, 221 798,145 6, 591, 773 706, 500870, 497 351, 748 301, 6228, 303, 680 366, 873 257, 440 376, 787 224, 838618,314 Redemption fund—Federal Reserves notes: July 26 9,101 446 1,747 937 580 75: 264 1,126 496 403 681 496 1,168 Aug. 2 9,101 446 1,747 937 580 757 264 1,126 496 403 681 496 1,168 Aug. 9 8,594 403 1,560 937 505 757 227 1,037 474 392 664 496 1,142 Aug. 16 9,056 403 1,560 857 505 1,312 227 1,037 474 392 664 483 1,142 Other cash: July 26 370, 979 23, 952 101, 543 29, 057 24, 375 24,807 23, 522 45,188 17, 332 10, 299 19, 445 16,193 35, 266 Aug. 2 349, 505 21, 845 92, 237 28, 260 24,188 21, 608 21, 733 45,821 17, 403 9,712 17, 723 16, 215 32, 760 A A u u g g . . 9 16 3 3 4 4 8 1 , , 9 5 1 0 9 9 2 2 2 2 , , 5 2 8 3 3 3 8 9 9 4 , , 3 8 2 9 0 5 2 2 8 8 , , 3 22 5 9 4 2 2 3 4 , , 1 1 8 9 1 6 2 2 2 0 , , 6 2 5 2 8 0 2 2 2 0 , , 7 43 8 3 7 4 4 3 3 , , 8 6 0 6 0 3 1 1 7 7 , , 2 5 3 6 5 3 9 9 , , 2 7 1 2 9 7 1 1 8 8 , , 0 4 1 4 2 6 1 1 5 5 , , 8 3 3 6 6 5 3 3 1 1 , , 0 43 3 9 4 Total reserves: July 26 14, 089, 302 809, 9426, 708, 969 693.13 885, 460 360, 304309, 010 2, 235, 573883, 622 259, 979 363, 840 236, 607842, 278 Aug. 2 .. 14, 227, 828 816, 485 16,, 682, 411721, 837 881, 378 366,051334, 617 2, 292, 522 3i7,3 ,204 263, 918 401, 834 248, 944844, 627 Aug. 9 14, 271, 733 835, 668 i6,, 632,872 72>6, ,896 888, 296 374,132 338, 877 2, 332, 343185, 977 272, 624 403, 922 240, 335839, 793 Aug. 16 14, 318, 786 821,1316,682,653 735,711 895,198 373, 280 322, 642 2, 348, 513784, 582 267, 559 395, 463 241,155850, 895 Bills discounted: Secured by U. S. Government obligations, director fully guaranteed: July 26 1,061 115 121 165 446 34 6' 60 Aug. 2 1,073 115 305 75 376 17 82 50 Aug. 9 1,400 115 562 84 341 27 88 45 Aug. 16 1,052 70 396 215 37 73 45 Other bills discounted: July 26 3,635 954 196 240 307 126 268 173 263 412 615 Aug. 2 3,587 196 254 307 136 245 168 246 417 617 Aug. 9 3,518 196 237 307 119 245 166 285 380 590 Aug. 16 3,500 196 23: 297 124 245 299 360 592 Total bills discounted: July 26 143 1,075 361 263 753 146 173 297 479 675 Aug. 2 4,660 144 1,214 271 277 683 156 262 168 246 499 667 Aug. 9 4,918 129 1,463 280 335 149 272 166 285 468 635 Aug. 16 4,552 70 1,302 264 335 154 282 166 299 433 637 Bills bought in open market: July 26 558 42 218 56 52 24 20 70 16 16 40 Aug. 2 545 41 212 55 51 23 19 69 16 16 39 Aug. 9 545 41 212 55 51 23 19 69 16 16 39 Aug. 16 545 41 212 55 51 23 19 16 16 39 Industrial advances: July 26 12, 579 1,708 2,794 2,721 361 1,144 762 474 206 565 943 Aug. 2 11, 746 1,690 2,131 2,708 363 1,145 758 380 856 205 563 943 Aug. 9 11,665 1,687 2,063 2,702 365 1,144 758 380 852 205 563 942 Aug. 16 11,615 1,732 2,060 2,701 369 1,067 755 380 849 205 552 942 U. S. Government securities: Bonds: July 26 911, 090 66, 909 267,160 77, 274 91, 264 50,811 38, 571 98, 492 41, 879 25, 775 44, 955 34, 652 73, 348 Aug. 2 911,090 66, 959 266, 076 77, 214 91, 250 51, 045 38, 686 98, 582 42, 093 25, 862 45, 185 34, 760 73, 378 Aug. 9 911,090 66, 975 265, 741 77,196 91, 245 51,119 38, 721 98, 610 42, 158 25, 889 45, 255 34, 794 73, 387 Aug. 16 911,090 67,003 265, 094 77,160 91, 237 51, 259 38, 790 98, 664 42, 284 25, 940 45, 394 34, 859 73, 406 Treasury notes: July 26 1,176,109 86, 373 344, 870 99, 750 117,812 65, 590 49, 792 127,141 54, 063 33, 274 58, 030 44,731 94, 683 Aug. 2 1,176,109 86,436 343, 471 99, 674 117, 793 65, 895 49, 939 127, 258 54, 336 33, 385 58, 328 44, 871 94, 723 Aug. 9 1,176,109 86, 454 343, 042 99, 651 117, 788 65. 987 49, 984 127, 293 54, 420 33, 419 58, 421 44, 914 94, 736 Aug. 16 1,176,109 86, 494 342, 203 99, 605 117, 777 66,170 50, 073 127, 363 54, 585 33, 486 58, 598 44,997 94, 758 Treasury bills: July 26 401, 020 29, 451 117, 592 34,012 40,170 22, 364 16, 9: 43, 352 18. 433 11,345 19, 787 15, 252 32, 285 Aug. 2 366, 220 26, 915 106, 951 31,037 36, 679 20, 518 15, 550 39. 626 16, 919 10,395 18,163 13, 972 29, 495 Aug. 9 355, 715 26,149 103, 753 30,139 35, 625 19, 958 15,118 38. 500 16, 460 10,108 17, 669 13, 584 28, 652 Aug. 16 335, 540 24, 676 97, 630 28, 41 33, 601 18,1 14, 286 36, 336 15, 573 9,553 16, 718 12, 838 27,034 Total U. S. Government securities: July 26 2, 488, 219 182, 733 729, 622211,036 249, 246138, 765105, 340 268, 985114, 375 70, 394122, 772 94, 635 200, 316 Aug. 2 2, 453, 419 180, 310 716, 498207, 925 245, 722137, 458104,175 265, 466113,348 69, 642121, 676 93, 603 197, 596 Aug. 9 2, 442, 914 179, 578 712, 536 206, 986 244, 658137, 064103, 823 264, 403113, 038 69, 416121, 345 93, 292 196, 775 Aug. 16 2, 422, 739 178,173 704, 927205,182 242, 615136, 307103,149 262, 363112, 442 68, 979120, 710 92, 694 195,198 Total bills and securities: July 26 2, 506,052 184, 626 733,709214,174 249, 922140, 686106, 268 269, 797114, 554 71, 356123, 291 95, 695 201, 974 Aug. 2 2, 470, 370 182,185 720. 055210, 959 246, 413139, 309105,108 266,177113, 522 70, 573122, 14394, 681 199, 245 Aug. 9 2, 460, 042 181, 435 716, 274210, 023 245, 409138, '49 265, 124113,210 70, 358121,851 94,339 198,391 Aug. 16 2, 439, 451 180, 016 708, 501208, 202 243, 370137, 909 104,,077 263, 094112,613 69,928 121,230 93, 695 196, 816 Due from foreign banks: July 26 165 12 61 17 15 21 2 2 5 12 Aug. 2 178 13 67 18 17 22 2 2 5 13 Aug. 9 178 13 67 18 17 22 2 5 13 Aug. 16 178 13 18 17 22 5 13 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1939 FEDERAL RESERVE BULLETIN 783 STATEMENT OF CONDITION 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 h d h i e i l l - a a- C l l a e n v d e- m Ri o c n h d - lanta Chicago Lo S u t. is n M o e l a i i n p s - - K C s a a i n t s y - Dallas F c S i r a s a c n n o - ASSETS—Continued Federal Reserve notes of other banks: July 26 22, 866 297 4,263 1,062 1,320 2,783 1,776 2,818 1,361 1,654 1,521 458 3,553 Aug. 2 22,130 26: 4,911 897 1,725 948 1,428 2,689 1,314 1,812 1,802 415 3,922 Aug. 9 22, 715 412 4,253 1,001 1,207 1,331 1,705 3,084 1,746 1,123 1,810 588 4, 455 Aug. 16 22, 635 4,548 972 1,607 1,100 1,573 3,352 1,793 1,218 2,005 365 3,809 Uncollected items: July 26 627, 608 61, 348 166,715 43, 848 76, 514 50,172 20,103 82, 021 25, 326 15,109 30, 648 22, 972 32, 832 Aug. 2 648, 826 64, 559 167, 640 49, 284 72, 437 49, 730 24, 829 92, 510 26, 212 15,199 32, 962 21, 863 31, 601 Aug. 9 582, 733 56,733 150,967 46, 099 62, 889 46, 526 20, 438 81,114 24, 435 15,811 28, 586 19, 724 29,411 Aug. 16 721,814 69, 989 200, 539 51, 794 84, 704 58, 085 23, 280 98, 705 28, 629 17, 305 32, 690 26, 993 29,101 Bank premises: July 26 42, 321 2,917 8,942 4,625 5,931 2,583 2,051 3,908 2,268 1,510 3,170 1,233 3,183 Aug. 2 42, 259 2,912 8,926 4,625 5,931 2,576 2,051 3, i 2,264 ir~ 3,157 1,227 3,183 Aug. 9 42, 259 2,912 8,926 4,625 5,931 2,576 2,051 3,899 2,264 3,157 1,227 3,183 Aug. 16 42, 259 2,912 8,926 4,625 5,931 2,576 2,051 3,< 2,264 1,508 3,157 1,227 3,183 Other assets: July 26 49, 372 3,103 14, 812 4,354 5,459 3,274 2,124 4,726 1,977 1,439 2,228 1,816 4,060 Aug. 2 49,126 3,122 14, 566 4,330 5,406 3,222 2,130 4,755 2,021 1,450 2,237 1,835 4,052 Aug. 9 49,918 3,166 14, 933 4,382 5,486 3,273 2,147 4,806 2,030 1,452 2,262 1,857 4,124 Aug. 16 50, 450 3,210 14, 958 4,425 5,548 3,366 2,240 4,849 2,072 1,467 2,283 1, r " 4,172 Total assets: July 26 17, 337, 686 062,245 7',, 637, 471961, 7931, 224, 621559, 809 441, 338 129,110 351,049 124, 703358, 786 , 087, 892 Aug. 2 17, 460, 717 , 069,543 7', 598, 576991, 9501, 213, 307561,844 470,169 2,662^574 118, 539 354.462564,140 368, 970 , 086, 643 Aug. 9 17, 429, 578 ', 528, 292993, 0441, 209, 235 566, "72~5 469, 973 2!,, 690, 390.29, 664362, 878 161, 593358,075 , 079, 370 Aug. 16 17, 595, 5731,077, 5647, 620,1921,005,7471,236,375 576,324 455,869 2, 722, 438531, 955 358, .56, 833365, 300 . 087, 989 LIABILITIES Federal Reserve notes in actual circulation: July 26 4, 498, 758 384, 9941,122, 212 316, 539 422, 030193, 995 151, 092 997, 647178, 635130, 938 .70, 931 76,147 353, 598 Aug. 2 4, 530, 71." 387, 5461,131, 894 317, 662 421, 488196, 642 152, 8681, 003, 033179, 828131, 701 73,014 77,115 357, 924 Aug. 9 4, 550, 689 389, 922 1,128, 559 319, 254 426,2' 201,190153, 66' 1, 008, 616 1, 710132,094 .73, 791 77, 239 360,354 Aug. 16 4, 563, 822 389, 7071,136,149 320, 731 425, 169 20'22,; 591153,3591, 012,134 1,592132, 374 .73, 524 77, 43' 360, 055 Deposits: Member bank—reserve account: July 26 10, 436, 286 521, 5, 666, 391 498, 612 583,032248, 901 189, 6491,324,555252, 918137, 085 !43, 398187, 593 582,154 Aug. 2 10, 412, 512, 5275, 549, 081 510, 093 576, 251,456 2™14', "2"1"91. 388,146243.210140, 182 157. 422200, 229 569, 336 Aug. 9 .10, 509, 003 516,889 5"i,. 588,171 518, 562 570, 745259, 969214, 8551, 407, 993254, 518142, 088 !62, 875194, 782 577,556 Aug. 16 10, 633, 449 501, 3485, 733, 768 521, 624 574, 640 257, 532208, 8281, 404, 281253, 982139, 515 :60,015194, 726 583,190 U. S. Treasurer—general account: July 26 742, 400 38, 530 173, 438 32, 726 70, 595 38, 355 52,015 96, 725 46,199 44, 272 51, 692 49,198 48, 655 Aug. 2 863, 462 53, 836 301,058 39, 562 68, 986 33, 761 50,211 54, 670 42, 921 44, 349 70, 819 46, 769 56, 520 Aug. 9 844, 268 64, 629 254,813 34, 667 76,030 30,906 50, 709 87, 926 44,169 50, 339 65, 838 42, 314 41, 928 Aug. 16 775, 739 67, 440 159, 13' 41,950 82, 306 30, 694 41, 463 110, 060 43, 034 48,132 62, 780 42, 603 46, 140 Foreign bank: July 26 287, 65' 20, 741 102, 368 27, 946 26,793 12,388 10, 083 34, 860 8,355 6,626 8,355 8,355 20, 787 Aug. 2 311, 136 22, 394 111,088 30, 172 28,928 13,375 10, 887 37, 63' 9,021 7, 154 9,021 9,021 22, 438 Aug. 9 307, 298 22, 075 110,102 29, 742 28, 515| 13, 184 10,732 37, 101 8,892 7,052 8,892 8,892 22, 119 Aug. 16 280, 665 20, 159 100, 578 27, 161 26,041 12,041 9,800 33, 881 8, 12 6,440 8,120 8,120 20, 203 Other deposits: July 26 402, 454 9,877 300, 760 8,470 14, 704 1,5331 5,924 14, 772 5, 184 7, 572 8,56' 1,382 23, 709 Aug. 2 351,180 5,301 236, 330 7,832 12, 453 2,078 5,540 37, 125 6, 254 6, 586 8,454 1, 674 21, 553 A A u u g g . . 9 16 2 28 8 4 9 , , 5 2 8 3 5 7 5 5, ,5 3 07 1 2 1 1 9 9 1 2 , , 4 5 5 6 4 ' 7 7 , ,758 1 1 1 1 , ,6 7 8 2 0 6 1 1 , , 7 5 1 8 7 6 6, 6 8 , 3 4 1 09 2 1 0 6 , , 6 4 0 9 2 9 6 5, , 6 0 2 3 4 4 5 5 , , 7 8 9 1 0 9 8 8 , , 4 5 3 0 4 5 1 1, ,773 2 21 1 , , 4 4 5 0 0 9 Total deposits: July 26 11, 868, 79' 591,146 6i,, 242, 95' 567, 754 695,124 301,1 257, 6711, 470, 912312, 656 195i,, 555312,012246, 528 675, 305 Aug. 2 11, 938, 661 594, 058 197, 557 587, 659 687, 349 300, 670 280, 8581, 517, 578301, 406198, 271345, 716257, 693 669, 847 A A u u g g . . 9 16 1 1 1 1 , , 9 97 4 4 9 , , 4 8 3 0 8 6 6 5 0 9 9 4, , 0 1 '1 2 9 4 " 0 6 , , 1 1 8 4 6 4 , , 0 5 5 4 0 0 5 5 9 9 0 8 , , 4 8 9 3 3 7 6 69 8 4 7 , , 0 66 1 7 6 3 3 0 0 5 1 , , 8 7 5 7 3 6 266, 500 1 1 , , 5 5 5 6 3 4 , , 6 7 2 2 2 1 3 31 1 0 3 , , 6 76 1 1 3 2 1 20 9 05 9 5, , , 2 87 9 ' 83 33 4 9 6 , , 0 4 3 2 9 0 2 2 4 4 7 7 , , 1 7 3 6 5 1 6 6 6 7 3 0 , , 0 9 5 4 3 2 Deferred availability items: July 26 621, 794 61,915 152, 269 44, 82' 74, 652 49, 756 19, 833 85, 323 27, 238 15, 350 31. 506 24,996 34,129 Aug. 2 642, 946 63, 745 148, 798 54, 052 71, 670 49, 683 23, 693 97, 009 26. 723 15, 292 35^ 199 23, 066 34,016 Aug. 9 580,483 57, 094 135, 007 50, 335 63, 071 44, 869 20, 405 83,13: 25, 743 16, 275 31, 522 21,958 31, 067 Aug. 16 708, 783 69, 632 177, 765 53, 914 83, 700 57,012 23, 240 100,586 30, 023 17, 538 33, 6' 29, 622 32, 078 Other liabilities including accrued dividends: July 26 2,420 286 793 288 214 112 215 52 202 67 Aug. 2 2,879 325 1,115 301 232 118 243 61 103 188 82 Aug. 9 2,806 325 963 309 24 123 259 63 107 194{ 94 Aug. 16 2,948 334 1,006 329 263 127 27' 68 111 199 109 Total liabilities: July 26 16, 991, 769 1,038, 3417, 518, 231 929, 4081,192, 020 544, 958 428, 708 2, 55c,4 097518, 581 341, 931514,651347, 7371,063,099 Aug. 2 17,115,201 1,045, 674" 7,, 479, 364 959, 674 1,180, 739 547, 034 457, 536 2, 671,7863508, 018 345, 367554, 1•1•-7 357, 9461, 061, 869 Aug. 9 17,083, 784 1,056, 465 \7 ,409, 069 960, 7351,176, 627 551, 882 457, 3222, 645, 634519,129 353, 774551, 7,0331,054, 568 Aug. 16 17, 249, 991 1, 053, 692 '7,, 500, 970973, 4671,203,799561, 504 443', 226 2, 677, 715521, 444 349, 900546, 816 354, 2? 1,063,184 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

784 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 STATEMENT OF CONDITION 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 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 t - a Chicago Lo S u t. is n M o e l a i i n p s - - K C s a a it n s y - Dallas F c S i r s a a c n n o - CAPITAL ACCOUNTS Capital paid in: July 26 135, 430 9,408 50, 867 12, 201 13, 734 5,113 4,535 13, 774 3, 2,916 4,283 4,038 10, 568 Aug. 2 135, 408 9,405 50, 873 12, 118 13, 744 5,108 4,550 13, 806 3,993 2,914 4,285 4,038 10, 574 Aug. 9 135, 428 9,407 50, 878 12, 115 13, 742 5,115 4,554 13, 806 3,993 2,914 4,2! 4,041 10, 574 Aug. 16 135, 477 9,405 50, 874 12, 116 13, 740 5,117 4,559 13,804 3,997 2,916 4,292 4,042 10, 615 Surplus (section 7): July 26 149,152 10, 083 52, 463 13, 696 14, 323 4,983 5,630 22, 666 4,685 3,153 3,613 3,892 9,965 Aug. 2 149,152 10,083 52, 463 13,696 14, 323 4,983 5,630 22, 666 4, 3,153 3,613 3, 9, 965 Aug. 9 149,152 10,083 52, 463 13, 696 14, 323 4,983 5,630 22, 666 4,685 3,153 3,613 3,892 9,965 Aug. 16 149,152 10, 083 52, 463 13,696 14, 323 4"" 5,630 22, 666 4,685 3,153 3,613 3,892 9, 965 Surplus (section 13b): July 26 27, 264 2,874 7,45' 4,416 1,007 3,293 713 1,429 545 1,001 1,142 1,2 \121 Aug. 2 27, 264 2,874 7,457 4,416 1,007 3,293 713 1,429 545 1,001 1,142 1,2 2,121 Aug. 9 27, 264 2,874 7,457 4,416 1,007 3, 293 713 1,429 545 1,001 1,142 , 266 2,121 Aug. 16 27, 264 2,874 7,457 4,416 1,007 3,293 713 1, 429 545 1,001 1,142 2,121 Other capital accounts: July 26 34, 071 1,539 8,453 2,072 3,537 1,462 1,752 6,903 1,306 2,041 1,014 ,853 2,139 Aug. 2 33, 692 1,507 8,419 2,046 3,494 1, 42f 1,740 6,810 1,298 2,027 983 ,828 2,114 Aug. 9 33, 950 1,510 8,425 2, f'" 3,536 1,452 1,754 6,855 1,312 2,036 1,003 ,843 2, 142 Aug. 16 33, 689 1,510 8,428 2,052 3,506 1,427 1,741 6,824 1,284 2,017 970 1,826 2,104 Total liabilities and capital accounts: July 26 17, 337, 1, 062,245 7',, 637, 471961, 793 1, 224, 621559, 809 441, 338 2, 598, 8691 ,51219,0 351,049 524,703 35,87861, 087, 892 Aug. 2 17, 460, 7171,069, 543 I, 576 991, 9501, 213, 307561, 844 470,169 2, 662, 575418, 539 354, 462 564,140368, 9701, 086, 643 Aug. 9 17, 429, 5781, 080, 3397, 528, 292 993, 0441, 209, 235566, 725 469, 973 2, 690, 359209 562694^ 636642 38672'8, 5 86718 55 959363 1358, 0751, 079, 370 Aug. 16 17, 595, 5731, 077,564 7", 620,1921, 005, 7471, 236, 375576, 324 455, 869 2, 722, 438 531, 955 358, 9878 35356 3;65, 3001,087,989 Contingent liability on bills purchased for foreign correspondents: Aug. 16 36 10 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

785 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 INDUSTRIAL ADVANCES AND COMMITMENTS UNDER SECTION 13b OF THE FEDERAL RESERVE ACT, JUNE 19, 1934, TO AUGUST 16, 1939 [Amounts in thousands of dollars] Applications Applications approved to date by Federal Reserv e banks (with and Fe r d e e c r e a i l v e R d e s b e y rve Applications under without conditions) Date ( e la a s c t h W m e o d n n th e ) sday of N d s b C u u i a d o s m n e t m r k r b i a s m a e t l r i i a o t f t n A t e e A e d r b s v m y , c i n s o o I o n u e n r t n - - y t N c F u o e m n d s b e id r e b a r e a l r n a R k t A i s e o s m n e o rv b u e y nt Numbe T r ota A l mount a s R F d ta b e e v o n a d s a u d e n e n t r i k r - c v n a e e g l s 1 s c R F t o m b a e e o m n a d s e u e d n e n m t r k i r - t v n i a s t e g l - A b p p u l c p e t o r t m e o n d v o - e 2 t d d o e R r a x r a c e p e p w a p t w p c i n n a r . l i t e i i t , b d - d h y , , - s i t p F n p a t g a a i u n o n t r t d u i i t a i n o i i o t n c n - s n n c i g t s - i - - 3 1934—Dec. 26 4,386 146, 972 71 2,955 984 49, 634 13, 589 8,225 20, 966 5,558 1,296 1935—June 26 6 325 237, 581 68 11, 349 1,646 88, 778 27, 518 20, 579 11,248 24, 900 4 533 Dec. 31i 7,437 293, 084 28 2,823 1,993 124, 493 32, 493 27, 649 11, 548 44,025 8, 778 1936—June 24 . 8,006 314, 471 12 1,880 2,183 133,343 30, 484 24, 454 9,381 61, 425 7,599 Dec 30 8,247 328, 998 5 1,245 2,280 139, 829 25, 526 20, 959 8,226 77, 910 7, 208 1937—Mar. 31 __ .. 8,344 333, 300 9 1,322 2, 323 141, 545 23, 059 18,611 7,898 85, 210 6,767 June 30 8,430 339, 509 10 1,263 2,361 145, 758 23, 019 16,331 1,470 97, 663 7,275 Sept. 29 _ __. 8,474 341, 842 1 800 2,381 146, 724 21,415 14, 880 537 102, 588 7,304 Dec. 29 8,534 350,551 7 550 2, 406 150, 987 20, 216 12, 780 3,369 107, 384 7, 238 1938—Mar. 30 8,708 358, 936 19 1,299 2,464 154,918 19, 371 13,110 3,419 111, 193 7.825 June 29 8,976 369, 583 8 476 2,566 161,158 18, 444 13, 649 3,084 117, 555 8,426 Sept. 28 9,102 378,974 8 146 2,617 168, 380 17, 567 13,597 5,737 122,447 9,032 Dec. 28 9,188 387,490 5 247 2,653 175,013 17, 345 14,161 1,946 128, 839 12, 722 1939—Jan. 25 9,203 389,176 8 999 2,660 175, 651 16,811 13,004 1,293 132,009 12, 534 Feb. 21 4 9,221 389, 554 7 964 2,671 175, 902 16, 474 12, 907 1,105 133,001 12,415 Mar. 29 9, 249 392, 230 14 344 2,683 177, 895 15, 798 12, 647 1,975 135,004 12,-171 Apr. 26 9,270 394,055 7 495 2,697 178, 639 15, 817 11, 749 2,134 136, 696 12, 243 May 31 9,296 394, 970 6 400 2,713 179,332 15, 305 11, 530 2,496 137, 922 12, 079 June 28 _ _. 9, 308 395, 499 5 255 2,721 179, 778 15, 255 11, 175 2,067 139, 281 12,000 July 26 9, 330 399, 780 6 760 2.730 183, 354 15, 384 11,476 733 142, 943 12,818 Aug. 16 5 9, 336 400, 245 2 75 2,734 183, 700 14,617 11,261 786 144, 537 12, 499 1 Includes industrial advances past due 3 months or more which are not included in industrial advances outstanding in weekly statement of condition of the Federal Reserve banks. 2 Includes applications approved conditionally by the Federal Reserve banks and under consideration by applicant. 3 Does not include financing institution guaranties of advances and commitments made by Federal Reserve banks, which amounted to $1,470,200 on August 16, 1939. 4 Tuesday. 5 August 23 and 30 not yet available. 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 e h i l- i l a a- C la le n v d e- m Ri o c n h d - la A n t t - a c C a h g i- o L S ou t. is n M o e l a i i n p s - - K C s a i a t s n 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: July 26 4, 811, 723 1571, 228,003 332, 719 440, 538 207,065 162, 974 1, 028, 212911,118137, 563182,112 83, 703 409),, 550 Aug. 2 4, 814, 318406, 3231, 226, 446 335, 029 440, 899 206, 222 163, 460 1, 031, 159602, 314136, i ,364 85, 321410, 445 Aug. 9 4, 841, 728407, 0491, 228, 269 337, 127 442, 460 212, 387 164, 594 1, 037,1 9632,3 210137,953183, 759 84, 544 412I; ,7 753 Aug. 16 4, 847, 304408, 876 1,224. 996 340, 800 443, 972 213, 314 1636,7 06 710 1, 038, 417911, 951137, 344183, 659 84, 042 416,, 209 Held by Federal Reserve bank: July 26 312, 965 23,163 105, 791 16,180 18, 508 13, 070 11,882 30, 574 12, 483 6,625 11,181 7,556 55, 952 Aug. 2 283, 603 18, 777 94, 552 17, 367 19,411 9,580 10, 592 28, 529 10, 486 5,232 8,350 8,206 52, 521 Aug. 9 291, 039 17,127 99, 710 17, 873 16, 167 11,197 10, 927 29, 007 13, 500 5,859 9,\ 7,305 52, 399 Aug. 16 283, 482 19, 169 20, 069 18, 803 10, 723 10,311 26, 337 11,359 4,970 10, 135 6,605 56,154 In actual circulation: i July 26 4, 498, 758384,994 1, 122, 212 316, 539 422, 031093, 995151,092 997, 647178, 635130, 938170, 931 76,147353, 598 Aug. 2 4, 530, 715387, _5..4 61>131>~~- 317J 66•- 2 42•1-«, 488 196, 642152, 8681, 003, 033179,! 131, 701173, 014 77,115357, 924 Aug. 9 4, 550, 689389, "1, 128, 559 319, 254 426, 293 2,0119.0153, i 1, 008, 616179, 710132, 094173, 791 77, 239360, 354 Aug. 16 4, 563, 822389, 7071, 136,149 320, 731425,169 202, 591153, 3591, 012,134 180, 592 132, 374173, 524 77, 437360, 055 Collateral held by bank as security for notes issued to bank: Gold certificates on hand and due from U. S. Treasury: July 26 4, 927,000420,0001, 248,000 345,000 445,000 210,000 169, 0001, 045,000196,000143, 500185,000 86, 500 434,,000 Aug. 2 4, 928, 500420, 0001, 248, 000 345,000 445,000 210,000 169,0001,045,000196, 000143, 500185,000 88,,00,0 043040, Aug. 9 4, 929, 500420, 0001, 248,000 345, 000 445, 000 215,000 169,0001, 045,000196, 000139, 500185,000 8888,0000 434, 000 Aug. 16 4, 941, 500420, 0001, 248, 000 345, 000 447, 000 215,000 169, 0010, 055, 000 196,000139, 500185,000 88,000 434,000 Eligible paper: July 26 2, 453 128 199 165 73 666 16 238 421 530 Aug. 2 1, """ 129 338 75 87 596 16 188 521 Aug. 9 2,251 124 594 146 561 16 226 490 Aug. 16 1,766 70 434 425 26 241 492 Total collateral: July 26 4, 929, 453420.1281, 248,199 345,165 445,073 210, 666 1,000 1, 045,000 196, 017143, 516185, 238 86, 921 434, 530 Aug. 2 4, 930, 463420.1291, 248, 338 345,075 445,087 210, 596169,0001, 045,000196,013143, 516185,188 88,000 434, 521 Aug. 9 4, 931, 751420,1241, 248, 594 345,084 445,146 215, 561169, 0001,045, 000196, 010139, 516185, 226 88, 000 434,490 Aug. 16 4, 943, 266420,0701, 248, 434 345, 068 447, 000 215, 421569, 0001,055,000196,010 139, 526185, 241 88,000 434, 492 1 Includes Federal Reserve notes held by the United States Treasury or by a Federal Reserve bank other than the issuing bank. 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786 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 RESERVE POSITION OF MEMBER BANKS, MEMBER BANK RESERVE BALANCES JUNE, 1939 BY CLASSES OF BANKS [Averages of daily figures. In millions of dollars] [Averages of daily figures. In millions of dollars] Reserves with Central reserve Gross Net Federal Reserve All city banks Re- Classes of banks de- de- Time banks mem- serve Counand districts mand mand de- ber city try de- de- posits banks i New Chi- banks banksi posits posits i Re- Held Ex- York quired Total reserves held: All member banks._ 34,135 27, 816 11, 690 5,919 10, 321 4,402 June 7,878 3,341 899 2,359 1,280 July 8,167 3,545 925 2,396 1,302 Centralreserve city banks: August 8,119 3,523 875 2,402 1,319 New York 12, 510 11,672 715 2,691 5, 195 2,504 September 8,196 3,669 861 2,352 1,314 Chicago 2,593 2 279 486 543 848 305 October 8,546 3,939 2,409 1,317 November 8,727 4,075 2,426 1,338 Reserve city banks: December 8,745 4,139 2,387 '., 322 Boston district 1,024 184 357 173 1939—January 9,029 4,409 2,474 ,366 New York district 160 147 35 52 16 February 8,925 4,482 673 2,405 ,364 Philadelphia district._ 1,007 248 189 346 157 March 9,021 4,472 681 2,475 ,393 Cleveland district 1,277 730 260 443 183 April 9,624 4,889 794 2,544 ,397 Richmond district 549 206 106 152 46 May 9,997 5,094 2,630 ,395 Atlanta district 492 174 95 118 24 June 10,085 5,049 2,728 ,415 Chicago district 896 569 185 280 95 July 10, 321 5,195 848 2,827 ,451 St. Louis district 621 178 118 187 69 Week ending (Friday): Minneapolis district.. 262 89 50 79 29 1939—June 30 10, 0C8 5,025 912 2, 736 ,395 Kansas City district.__ 638 158 120 178 58 July 7 10,118 5,049 874 2,751 445 Dallas district 432 128 82 116 34 July 14 10, 304 5,161 857 2,818 468 1,676 1,943 390 519 128 July 21 10, 389 5,242 833 2,864 450 San Francisco district- July 28 10, 429 5,287 836 2, 862 ,443 11,881 9,034 4,669 1,814 2,827 1,013 Aug. 4 10,433 5,229 862 2,876 ,469 Total Aug. 11 10, 498 5,185 924 2,899 ,490 Country banks: Excess reserves: Boston district 852 621 557 102 167 65 1938—June 2,762 1,153 404 747 459 New York district 1,277 945 1,393 183 340 157 July 3,026 1,352 424 767 483 Philadelphia district.. 624 428 879 95 156 61 August 2, 955 1,320 379 762 495 Cleveland district 589 406 663 82 131 49 September 2,920 1,382 361 698 479 Richmond district 508 319 347 56 91 36 October 3,143 1,589 375 712 467 Atlanta district 483 296 223 47 70 24 November 3,276 1,712 374 710 480 Chicago district 859 576 716 105 184 79 December 3,226 1,734 376 658 457 St. Louis district 360 231 242 40 63 23 1939—January 3,484 1,996 260 734 495 Minneapolis district.. 308 193 271 37 58 21 February 3,373 2,047 164 669 494 Kansas City district.. 457 279 156 41 66 25 March 3,432 1,986 179 741 526 Dallas district _. 504 327 104 44 71 97 April 3,926 2,302 299 794 531 San Francisco district 330 211 269 39 53 May 4,212 2,465 360 858 529 14 June 4,246 2,394 362 944 546 Total 7,151 4,831 5,819 1,451 July 4,402 2,504 305 1,013 581 581 Week'ending (Friday): 1939—June 30 4,214 2,365 372 948 530 i Gross demand deposits minus demand balances with domestic banks July 7 4,259 2,392 335 958 574 (except private banks and American branches of foreign banks) and July 14 4,396 2,477 314 1,007 598 cash items in process of collection. July 21 4,459 2,547 289 1,044 579 NOTE.—See table at foot of p. 797 for percentages of deposits required July 28 4,468 2,572 290 1,033 573 to be held as reserves. Aug. 4 P4, 464 2,506 315 1,048 Aug. 11 *>4, 501 2,453 366 1,064 P Preliminary. i Weekly figures of excess reserves of all member banks and of country banks are estimates. DEPOSITS OF MEMBER BANKS IN LARGER AND SMALLER CENTERS [Averages of daily figures. In millions of dollars] iVll member bank3 Membe ( r p l b ac a e n s k s o v i e n r l 1 a 5 r , g 0 e 0 r 0 ) centers Memb ( e p r l a b c a e n s k u s n i d n e s r m 1 a 5 l , l 0 e 0 r 0 ) centers Federal Reserve district Gross demand Time Gross demand Time Gross demand Time July June July June July June July June July June July June Boston 1,994 1,923 656 656 1,864 1,799 528 528 129 124 128 128 New York. _ .._ .. _ 13,991 13, 683 2,255 2,241 i 1,190 i 1, 203 i 1, 042 i 1, 042 291 282 498 496 Philadelphia 1,848 1,827 1,126 1,122 1,625 1,610 671 668 223 217 455 453 Cleveland 2, 205 2,163 1,393 1,400 1,982 1,941 1,097 1,104 222 221 296 296 Richmond 1,215 1,213 554 555 1,037 1,033 360 362 177 180 193 193 Atlanta . .. 1,181 1,194 397 396 1,029 1,036 311 310 152 157 87 87 Chicago 4,722 4,665 1,771 1,754 i 1,810 i 1, 787 i 993 i 986 319 321 291 289 St. Louis __ _ _ 1,168 1,141 420 416 957 932 303 299 211 209 117 117 Minneapolis 693 682 360 358 515 505 176 175 178 178 184 184 Kansas City 1,465 1,417 314 314 1,130 1,088 200 200 335 329 113 114 Dallas 1,203 1,194 232 233 926 916 186 187 277 278 46 46 San Francisco _. 2,452 2,394 2,212 2,224 2,337 2,281 2,115 2,127 115 113 97 97 Total 34,135 33, 495 11, 690 11, 668 116, 403 116,134 i 7, 983 i 7,988 2,629 2,607 2,506 2,498 1 Excluding central reserve city banks, for which figures for latest month are shown in table above. 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787 SEPTEMBER 1939 FEDERAL RESERVE BULLETIN 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 l l v a 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 1 r t y a 8 e s 9 s - 0 S s u c i i a b l o v r s i y n e i r d- 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 - k a s l 1938—July 6,452 78 40 1,247 1 341 145 258 4,098 30 214 August _ 6,504 77 40 1,263 1 344 146 262 4,129 29 211 September 6,622 77 40 1,292 1 348 147 264 4,215 29 208 October 6,700 76 41 1,297 1 351 148 269 4,282 28 206 November 6,787 76 41 1,312 1 356 151 269 4,349 28 203 December 6,856 75 42 1,339 1 357 151 257 4,405 28 201 1939—January 6,653 75 41 1,269 1 348 149 244 4,301 27 198 February 6,731 74 41 1,327 1 350 150 246 4,320 27 195 March 6,817 74 41 1,378 1 352 151 261 4,350 27 193 April 6, 905 73 42 1,385 1 354 152 255 4,426 26 191 May _ __ 6,967 72 42 1,417 1 358 154 259 4,449 26 189 June 7, 047 72 42 1,454 1 361 155 266 4,484 26 186 July. 7, 049 71 43 1,446 1 3C2 156 264 4,496 25 184 Back figures.—See Annual Report for 1937 (table 35.) PAPER CURRENCY, BY DENOMINATIONS, AND COIN IN CIRCULATION [Outside Treasury and Federal Reserve Banks. In millions of dollars] Total Coin and small denomination currency 2 Large denomination currency 3 Un- End of month in cir- assortt c i u o l n a - i Total Coin $1 $2 $5 $10 $20 Total $50 $100 $500 $1,000 $5,000 $10,000 ed' 1938—July 6,452 4,836 526 481 879 1,508 1,410 1,618 388 727 152 307 August 6,504 4,885 530 488 891 1,528 1,416 1,622 389 727 152 308 September 6,622 4,970 536 501 912 1,556 1,434 1,656 396 744 156 317 October 6,700 5,021 540 505 923 1,572 1,450 1,683 400 754 157 321 November 6,787 5,096 548 511 1,599 1,469 1,696 404 761 158 323 December 6,856 5,147 550 524 1,611 1,481 1,714 409 770 160 327 1939—January 6, 653 4,953 538 492 904 1,546 1,440 1,705 403 768 160 329 February 6,731 5,011 541 498 919 1,574 1,446 1,721 406 774 161 335 March 6,817 5,049 544 503 928 1,594 1,448 1,770 411 799 165 349 April 6,905 5,069 548 505 929 1,602 1,453 1,838 418 829 170 370 May 6,967 5,109 554 513 937 1,614 1,458 1,861 422 836 172 380 June 7,047 5,164 558 514 947 1,638 1,473 1,887 428 848 176 388 July 7,049 5,169 561 514 947 1,644 1,470 1,885 426 847 175 391 i Total of amounts of coin and paper currency shown by denominations less unassorted currency in Treasury and Federal Reserve banks. J Includes unassorted currency held in Treasury and Federal Reserve banks and currency of unknown denominations reported by the Treasury as destroyed. * Paper currency only; $1 silver coins reported under coin. Back figures.—See Annual Report for 1937 (table 36). TREASURY CURRENCY OUTSTANDING SHIPMENTS AND RECEIPTS OF UNITED STATES PAPER CURRENCY [Held by Treasury and Federal Reserve banks a nd in circulation. In millions of dollars] [By selected banks and financial institutions in New York City. In millions of dollars] End of month Total d S s o b a i i l l u l n v v l l d a e - e r r r s s S i i s a l u i v r d b y e - - r M c i o n i o n r U S n n t o a i t t t e e e s s d s b F e R e a e r r e n a d v - l k - e t n b i N o o a n t a n e - k a s l Year or month m E S e u n h r t i o s p p - e to R E e f u r c o r e o m i p p e ts m s N h e i e n p t t - s rec N e e ip t ts lion i coin notes 1936 34.8 26.2 8.6 1937.. 21.5 47.6 26.1 1938—July 2,721 1, 596 374 157 347 30 217 1938 33.1 34.4 1.3 August 2,731 1,608 375 157 347 30 214 S N O D e c o e p t c v o t e e e b m m m er b b b e e e r r r . . . . 2 2 2 2 , , , , 7 7 7 7 3 5 9 7 9 1 8 3 1 1 1 1 , , , , 6 6 6 6 3 1 5 8 4 8 7 5 3 3 3 3 7 7 7 7 6 6 6 6 1 1 1 1 5 5 5 5 8 8 8 9 3 3 3 3 4 4 4 4 7 7 7 7 2 2 2 2 9 9 9 8 2 2 2 2 1 0 0 0 2 8 6 3 1938— A S O Ju e u c l p t g y o t u e b s m e t r ber 1 1 1 4 0 . . . . 1 1 7 6 3 2 1 . . . . 6 0 8 3 1 1 3 0 . . 7 0 3 1 . . 7 2 November __ 3.4 1.0 2.4 1939—January 2,816 1,705 376 159 347 28 201 December .7 2.2 1.5 February... 2,824 1,717 376 160 347 27 198 A M p a r r i c l h 2 2 , , 8 8 3 4 9 9 1 1 , , 7 7 4 3 6 3 3 3 7 7 7 6 1 1 6 6 0 0 3 3 4 4 7 7 2 2 7 7 1 1 9 9 6 3 1939— F J e a b n r u u a a ry ry 6 3 . . 7 0 2 1 . . 0 0 4 2 . . 7 0 May... 2,862 1,759 377 161 347 26 191 March _. 27.3 .9 26.4 June ___ 2,881 1,778 380 161 347 26 189 April _ 46.1 .3 45.8 July 2,895 1,794 381 162 347 26 186 May __- 3.8 .7 3. 1 June 2.9 1. 1 1.8 1 Includes silver held against silver certificates amounting to $1,696,- July 2.2 1.0 1.2 000,000 on July 31, 1939 and $1,530,000,000 on July 31, 1938. Back figures.—See Annual Report for 1937 (table 38). Description.—See BULLETIN for January 1932, pp. 7-8. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

788 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 ANALYSIS OF CHANGES IN GOLD STOCK OF MOVEMENT OF GOLD TO AND FROM UNITED STATES UNITED STATES 1 [In millions of dollars] [In thousands of dollars] Net Gold stock at In- gain or Do- 1939 end of year loss (—) mesor month Net through tic Year or month total gold ear- gold July June Jan.-July gold import marking pro- From or to Total Inactive stock trans- ducaccount actions 2 tion Im- Ex- Im- Ex- Im- Exports ports ports ports ports ports 1934 i 8,238 4, 202. 51,133. 9 82.6 96.0 1935 10,125 1, 887. 21, 739. 0 .2 110.7 Belgium 165, 121 1936_ 11, 258 26.5 1,132. 51,116.6 -85.9 131. France , 1937. 12, 760 1, 227. 9 1, 502. 51, 585. 5 -200. 4 143.9 Germany 3,682 1938. 14, 1, 751. 51, 973. 6 -333. 5 148.6 N Sp e a th in erlands 45, 554 55, 081 275, 68 9 0 1937—April 11, 799 568.0 225.6 215.8 7.2 9.2 Sweden 10 379 May 11, 990 759.1 191.1 155.4 26.2 12.4 Switzerland 5,628 5,644 3,860 68 J J A S N O u u e u c o n l p y t g v e o t u e e b m s m e t r b b e e r r 1 1 1 1 1 1 2 2 2 2 2 2 , , , , , , 8 4 7 7 5 3 0 4 4 7 6 1 3 6 1 4 7 8 1 1 1 1 1 1 , , , , , , 2 2 0 2 3 2 7 1 8 1 3 4 0 6 2 5 1 4 . . . . . . 9 1 0 7 8 5 - 3 1 1 1 2 6 2 7 2 2 9 2 7 4 1 7 . . . . . . 3 0 8 3 6 3 2 1 1 1 9 2 6 7 0 4 0 2 2 5 4 5 . . . . . . 5 4 1 0 8 5 - - - 3 2 - 1 - 8 5 5 0 5 9 . . . . . . 0 3 9 5 1 3 1 1 1 1 1 1 2 4 2 3 1 6 . . . . . . 2 9 7 8 2 9 A M C U C C r h e a n e g n i n i x l e t t a e i e r n c d d a o t a l i n K A a i m ng er d i o ca m .. s _ - 1 1 7 5 4 1 7 , , , , 1 8 5 1 2 5 0 3 2 0 0 5 9 1 4 7 1 1 2 7 3 8 , , , 2 1 2 5 7 8 9 1 0 8 0 6 0 2 1 1, 4 7 7 1 6 4 7 9 4 3 5 1 , , , , , , , 5 4 1 9 5 0 6 4 1 9 3 5 3 8 1 5 6 4 2 1 0 1 5 6 6 2 December 12, 760 1, 227. " -14.0 18.0 -101.6 11.9 Colombia 2,123 2,107 14, 783 Ecuador 369 174 1,751 1938—January 12, 756 1, 223. 2 -4, 2. 1 -1.1 11.0 Peru 226 380 2,247 February 12, 776 1, 200. 6 20.7 8.0 -18.2 10.0 Venezuela 318 394 2,467 March 12, 795 1,183. 0 18.5 52.9 -.6 10.7 Australia 5,034 5,677 35, 690 April 12, §69 74.3 71.1 -1.2 10.6 British India 2,760 2,244 17, 200 May 12, 919 49.8 52.8 -53.9 11.5 China and Hong June 12, 963 44.2 55.3 -15.5 9.6 Kong 1,190 560 9,362 July 13,017 54.5 63.8 -20.9 14.2 Japan 10, 938 14, 093 96,165 August 13,136 118. 3 166.0 -28.8 14.7 Philippine Islands. 3,022 3,843 20, 437 September 13, 760 623.8 520.9 -13.3 14.1 All other countries2. 2,647 4,520 October 14, 065 305.0 562.4 -110.2 13.5 November 14, 312 247.5 177.8 -7.4 15.5 Total 278, 645 9 240, 450 19 , 299, 722 444 December 14, 512 199.6 240.5 -62.4 13.3 1939— M F J e a a b n r u r c u a h r a y ry 1 1 1 4 4 5 , , , 1 8 2 7 5 4 8 3 1 1 8 7 9 3 0 2 . . . 0 7 8 2 3 1 6 2 5 5 3 6 . . . 4 3 3 -4 1 1 8 0 4 . . . 6 7 1 1 1 1 0 1 2 . . . 4 0 2 are 2 1 I F a n t i c g r l u a u r t d e e e s s o r f a e $ l p l 3 r e 5 m s a o e n v f t i e n m c e u e o s n u t t o n s m c o e s f . v u a n l r u e a p t o io rt n e s d w o h ri i g c i h n , o w r i t d h e s s o ti m na e t i e o x n c . eptions April 15, 791 532.3 605.8 -114.8 13.1 Back figures.—See table, p. 819, and Annual Report for 1937 (tables May 15, 957 166.2 429.4 -251.6 12.6 31 and 32). June 16,110 153.3 240.4 -102.6 10.6 July 16, 238 128.0 278.6 -166.2 Pll.4 Aug. 1-23 p 16, 501 262.6 144.2 78.8 BANK DEBITS p Preliminary. 1 Figures based on rate of $20.67 a fine ounce in January 1934 and $35 [Debits to individual deposit accounts, at banks in principal cities.] a fine ounce thereafter. [In millions of dollars] 2 Gold held under earmark at Federal Reserve banks for foreign account on July 31, 1939, in millions of dollars: 1,287.5. Total, 140 133 NOTE.—Figures for domestic production of gold are those published all New other other j in u st ta m b e l n e, t p b . a s 8 e 1 d 9 , o a n d j a u n s n te u d a l to f ig e u x r c e l s u d r e e p p o r r o t d ed u c b ti y o n D i i n re c P t h o i r l i o p f p i M ne i s n . t A an d d - Year and month re i p n o g rt- Y C o i r t k y le in a g d- re i p n o g rtmonthly imports of gold to U. S. from Philippines. For back figures, centers cities i cities 2 see Annual Report for 1937 (table 29). 1929 982, 531 603,089 331, 938 47, 504 BANK SUSPENSIONS^ 1935 402, 718 184, 006 190,165 28, 547 1936 461, 889 208, 936 219, 670 33, 283 M b e a m nk b s er Non b m an e k m s ber 1 1 9 9 3 3 8 7 4 40 6 5 9 , , 4 92 6 9 3 1 1 9 6 7 8 , , 8 7 3 7 6 8 2 2 0 3 4 5 , , 7 2 4 0 5 6 3 3 2 6 , , 4 4 0 2 6 1 Total, all 1938—June 35, 501 15, 637 17,160 2,704 banks Na- In- Not July 33,133 13,828 16, 677 2,628 tional State sured2 insured August 30, 798 12, 247 16, 023 2,528 September. 32,192 13, 085 16, 440 2,666 October. __ 36,130 15,140 18, 096 2,895 Number of banks suspended: November. 32, 224 12, 425 17,039 2,760 1934 57 1 8 48 December. 43, 209 18, 879 21,087 3,243 1 1 1 1 9 9 9 9 3 3 3 3 6 7 8 5 4 5 5 3 4 9 4 5 4 4 1 1 2 1 4 4 4 2 7 7 0 2 6 6 8 3 1939— M F J e a a b r n r c u u h a a r r y y . . . . _ 3 2 37 9 5 , , , 1 3 9 8 2 7 0 2 3 1 1 1 6 2 4 , , , 3 5 2 8 3 7 0 3 4 1 1 1 8 5 7 , , , 8 2 2 6 0 1 0 1 1 2 2 2 , , , 8 3 7 3 9 8 7 2 6 1939—Jan.-July 30 4 2 18 6 A M p a r y il 3 3 4 2 , , 8 65 2 6 2 1 1 3 4 , , 1 3 6 1 5 1 1 1 6 7 , , 8 7 3 6 2 3 2 2 , , 7 67 2 9 8 Deposits of suspended banks June 36, 883 15, 312 18, 676 2,895 (in thousands of dollars):3 July 33, 245 12, 794 17, 683 2,768 1934 36, 937 40 1,912 34, 985 1935 10, 015 5,313 3,763 939 1936 _ 11,306 507 10, 207 592 Comprises centers for which bank debit figures are available begin- 1937 19, 723 7,379 1 708 10 156 480 ning with 1919, except that one substitution was made in 1920 and one 1938_. 13,012 36 211 11, 721 1,044 in 1928. 1939—Jan.-July 33, 849 1,357 25, 634 4,779 2,079 2 Cities (other than the 141 centers) for which bank debits are currently reported. The number has changed very little since 1934 and has numbered 133 since 1936. 1 Represents licensed banks suspended; does not include nonlicensed Back figures.—See Annual Report for 1937 (Table 71), which also gives ba 2 3 n F D k e s e d p p e o l r a s a i c l t e s d d o e p f i n o m s e i l t i m q i u b n i e s d u r a r b t a i a n o n c n k e s o b r a e n c r d a e m c i e n e i s v u o e r p r e e s d h r a i n p t o i . v n e m J e a m n b u e a r r y b a 1 n , k 1 s 9 3 s 4 u . spended a to t d a e l f s i n b i y ti o F n e d o e f r a b l a n R k e s d e e rv b e it s d . i st F ri i c g t u s r e a s re f o a r v a i i n l d ab iv le id i u n a m l r im ep e o o r g ti r n a g p h c e i d ti e f s o r a m nd . are as of dates of suspension, and deposits of noninsured nonmember banks are based on the latest data available at the time the suspensions were reported. Back figures.—See Annual Report for 1937 (table 76). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

789 SEPTEMBER 1939 FEDERAL RESERVE BULLETIN ALL BANKS IN THE UNITED STATES Comprises all national banks in the continental United States and all State commercial banks, trust companies, mutual and stock savings banks and such private and industrial banks as are included in abstracts issued by State banking departments. Also includes, during the period June 1934-June 1935, private banks which, pursuant to the provisions of sec. 21 (a) of the Banking Act of 1933, submitted condition reports to the Comptroller of the Currency. Under the amended provisions of sec. 21 (a) private banks no longer report to the Comptroller of the Currency. For comparative figures of private banks included in the figures from June 1934 to December 1935, see Federal Reserve Bulletin for December 1935, p. 883, and 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 DEPOSITS1 Nonmember In millions of dollars] Member banks banks Member banks Nonmeniber banks Call date Total Other Total ti N on a- al State M s b a a u v n t in u ks g a s l b m n a b o e n e m n k r - s - Call date ba A n l k l s 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 b m h a e e n r m ks - 1929—June 29 25,110 8,707 7,530 1,177 611 15, 792 1929—June 29 53, 852 32, 284 19,411 12, 873 8,983 12, 584 Dec. 31 24, 630 8,522 7,403 1,119 609 15,499 Dec. 31___ 55, 289 33,865 20, 290 13, 575 8,916 12, 508 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 Dec. 30 15,011 6,011 5,154 857 579 8,421 Dec. 3O._. 38, 505 23, 771 15, 386 8,385 9,708 5,026 1934—June 30 15, 835 6,375 5,417 958 578 8,882 1934—June 30 41,870 26, 615 17, 097 9,518 9,780 5,475 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—June 29 15, 994 6,410 5,425 985 571 9,013 1935—June 29. __ 45, 766 29, 496 19, 031 10, 465 9,920 6,350 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—June 30 15, 752 6,400 5,368 1,032 566 8,786 1936—June 30. __ 51, 335 34, 098 21, 986 12,112 10, 060 7,178 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 1937—June 30 15, 527 6,357 5, 293 1,064 564 8,606 1937—June 30 53, 287 35,440 22,926 12, 514 10, 213 7,635 Dec. 31 15, 393 6,341 5,260 1,081 563 8,489 Dec. 31... 52, 440 34,810 22, 655 12,155 10, 257 7,373 1938—Mar. 7 15, 348 6,335 5,250 1,085 563 8,450 1938—Mar. 7—_ 51, 703 34,118 22, 264 11,854 10, 259 7,325 June 30 15, 287 6,338 5,242 1,096 563 8,386 June 30. 52,195 34, 745 22, 553 12,193 10, 296 7,153 Dec. 31 15, 206 6,338 5,224 1,114 556 8,312 Dec. 31___ 54, 054 36, 211 23, 497 12, 714 10, 365 7,478 1939—Mar. 29 15,151 6,331 5,212 1,119 555 8,265 1939—Mar. 29... 53, 812 36,089 23, 340 12, 749 10, 376 7,348 For footnotes see table below. For footnotes see table below. LOANS AND INVESTMENTS [In millions of dollars] All banks Member banks Nonmember banks Call date Mutual savings banks Other nonmember banks Total Loans I m nv e e n s t t s - Total Loans I m nv e e n s t t s - Total Loans I m nv e e n s t t s - Total Loans I m nv e e n s t t s - 1929—June 29 58, 474 41, 531 16,943 35,711 25, 658 10,052 9,556 5,892 3,664 13,207 9,981 3,227 Dec. 31 58,417 41, 918 16,499 35, 934 26,150 9,784 9,463 5,945 3,518 13,020 9,823 3,197 1933—June 30 40,076 22, 203 17, 872 24, 786 12, 858 11,928 10,044 5,941 4,103 5,246 3,404 1,841 Dec. 30 __ _ 40,319 21, 977 18, 342 25, 220 12, 833 12, 386 9,985 5,906 4,079 5,115 3,238 1,877 1934—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 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—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 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 1936—June 30 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 1937—June 30 49,696 22, 514 27,182 32, 739 14, 285 18, 454 10,180 5,002 5,178 6,778 3,227 3,550 Dec. 31 48, 566 22,198 26, 368 31, 752 13, 958 17, 794 10,187 4,996 5,191 6,627 3,244 3,383 1938—Mar. 7 48, 319 21, 779 26, 540 31, 521 13, 546 17,975 10,196 4,995 5,201 6,602 3,238 3, 364 June 30 47, 381 21,130 26, 252 30, 721 12, 938 17, 783 10,196 4,961 5,235 6,465 3,231 3,234 Dec. 312 48, 929 21, 354 27, 575 32, 070 13, 208 18, 863 10, 255 4,930 5,325 6,604 3, 217 3,387 1939—Mar. 29 2 48, 929 21,154 27, 775 32,095 13,047 19,048 10, 265 4,926 5,338 6,569 3,180 3,389 1 Prior to Dec. 30, 1933, member-bank figures include interbank deposits not subject to immediate withdrawal, which aggregated $103,000,000 on that date. The nonmember bank figures include interbank deposits to the extent that they are not shown separately in a few State bank abstracts. 2 The December 1938 and March 1939 figures of loans and investments exclude approximately $50,000,000 and $100,000,000, heretofore reported as loans and investments, respectively, which indirectly represent bank premises or other real estate and are now classified in condition reports among "other assets." Back figures—See Annual Report for 1937 (tables 48-49). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

790 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 CONDITION OF ALL MEMBER BANKS [In millions of dollars] Loans i Investments i Loans for U. S. Government obligations Com- purchasing Obli- Total mer- or carrying gations loans cial, securities Direct of Call date and in- Open Real Loans Other States Other in- Total i dus- mar- estate to loans 4 Total and securvest- trial, ket To loans banks Guar- polit- ities i ments and paper brok- an- ical agri- ers To Total Bills Notes Bonds teed subcul- and others3 divitural 2 deal- sions 5 ers TOTAL—ALL MEMBER BANKS 1929—Dec. 31 35,934 26,150 583 2,463 7,685 3,191 714 11,515 9,784 3,863 •249 520 3,094 1,393 4,528 1933—June 30.. 24, 786 12,858 595 953 3,752 2,372 330 4,857 11, 928 6,887 •1,113 2,049 3,725 1,744 3,297 1934—Dec. 31 28,150 12,028 751 1,030 3,110 2,273 155 4,708 16,122 9,906 81,030 4,217 4,659 989 1,965 3,262 1935—Dec. 31.. 29, 985 12,175 651 1,243 2,893 2,284 98 5,006 17, 810 10, 501 1,192 5,403 3,905 1,768 2,178 3,364 1936—Dec. 31 33,000 13, 360 634 1,410 2,785 2,405 85 6,041 19,640 11,639 1,053 4,527 6,060 1,906 2,226 3,868 1937—Dec. 31 31, 752 13, 958 643 950 2,752 2,547 70 6,996 17, 794 10, 574 662 4,277 5,635 1,797 2,047 3,376 1938—June 30.. 30, 721 12, 938 491 701 2,614 2,613 120 6,397 17, 783 10, 215 316 3,653 6,246 2,128 2,143 3,297 Dec. 31_. 32, 070 13, 208 5,448 442 973 '775 2,716 125 7 2, 728 18, 863 10,882 286 3,389 7,208 2,340 2,448 3,192 1939—Mar. 29.. 32,095 13, 047 5,531 427 838 733 2,749 99 2,671 19,048 10, 691 303 2,604 7,783 2,660 2,555 3,142 June 30 __32, 603 13,141 5,571 420 731 736 2,828 58 2,796 19, 462 10, 946 441 2,720 7,786 2,831 2,554 3,131 NEW YORK CITY • 1929—Dec. 31.. 8,774 6,683 195 1,257 2,145 169 322 2,595 2,091 1,112 •58 166 889 222 758 1933—June 30. 7,133 3,424 364 758 1,044 157 162 937 3,709 2,551 •638 987 926 478 680 1934 Dec. 31 7,761 3,159 396 716 820 139 63 1,024 4,602 3,246 758 1,664 824 278 446 632 1935—Dec. 31__ 8,418 3,434 286 1,078 793 140 42 1,096 4,985 3,425 865 1,810 749 401 507 653 1936 Dec. 31 9,280 3,855 216 1,173 753 144 42 1,527 5,425 3,739 718 1,559 1,462 470 426 790 1937—Dec. 31_. 8,313 3,673 198 761 733 141 29 1,811 4,640 3,207 495 1,536 1,175 388 342 704 1938—June 30- 8,013 3,172 141 556 717 132 85 1,541 4,840 3,031 222 1,358 1,451 709 394 706 Dec. 31__ 8,335 3,262 1,461 138 787 220 121 99 436 5,072 2,963 158 1,142 1,663 894 517 698 1939— Mar. 29 . 8,408 3,086 1,456 126 668 209 124 77 427 5,322 2,939 68 831 2,040 1,086 582 714 June 30. _ 8,688 2,988 1,479 128 555 215 130 41 440 5,700 3,360 168 908 2,284 1,123 480 736 CITY OF CHICAGO 8 1929—Dec. 31 __ 1,757 1,448 19 251 533 21 88 535 309 116 •3 19 94 96 96 1933—June 30_. 1,287 677 70 61 251 30 30 237 610 384 •206 82 97 87 138 1934—Dec. 31_. 1,581 532 77 55 170 18 11 202 L, 049 743 164 299 279 78 129 100 1935—Dec. 31_. 1,868 476 28 29 149 15 6 249 L, 392 1,061 213 604 243 88 141 103 1936—Dec. 31.. 2,100 633 22 51 140 13 6 402 L, 467 1,107 198 375 533 94 143 124 1937—Dec. 31__ 1,901 635 25 41 129 12 1 426 L, 266 916 32 366 518 94 135 121 1938—June 30 1 806 525 15 29 109 10 361 1,281 859 12 313 535 122 140 159 Dec. 31_. 1,969 539 336 16 43 70 12 1 62 L, 430 1,005 59 291 655 109 141 176 1939—Mar. 29_. 1,965 545 361 14 32 70 12 57 .420 992 121 212 660 108 149 171 June30__ 2,052 544 348 14 39 71 11 59 1,507 1,040 185 234 621 135 154 179 RESERVE CITY BANKS 1929—Dec. 31._ 12 029 9,084 168 664 2,775 1,538 258 3,679 2,944 1,368 •91 165 1,112 448 1,128 1933—June 30 8 492 4 482 126 108 1 340 1,131 99 1,678 4 011 2 483 » 205 681 1,597 598 930 1934—Dec. 31_. 10,028 4,312 179 195 1,124 1,090 55 1,671 5,715 3,809 95 1,692 2,022 279 649 978 1935—Dec. 31_. 10, 780 4,347 195 117 1,057 1,094 34 1,851 6,432 4,076 85 2,267 1,724 656 723 977 1936—Dec. 31.. 11, 795 4,794 209 159 1,048 1,124 23 2,231 7,000 4,426 120 1,904 2,403 697 774 1,102 1937—Dec. 31.. 11,414 5,203 201 123 1,066 1,176 27 2, 610 6,211 3,961 106 1,589 2,267 637 691 921 1938—June 30 11,150 4,853 163 96 998 1,201 26 2,369 6,298 3,940 69 1,268 2,603 718 732 908 Dec. 31.. 11, 654 4,963 2,121 149 119 242 1,230 20 1,081 6,691 4,278 57 1,224 2,997 740 808 866 1939—Mar. 29.. 11, 624 4,936 2,116 145 115 228 1,249 17 1,066 6,688 4,181 100 977 3,105 823 823 860 June30__ 11, 756 5,004 2,118 138 115 221 1,284 12 1,116 6,751 4,102 78 1,014 3,010 889 895 866 COUNTRY BANKS 1929—Dec. 31 13, 375 8,936 201 291 2,231 1,462 45 4,705 4,439 1,267 •97 171 999 627 2.546 1933—June 30 7 873 4 275 35 25 1,117 1,055 38 2 005 3,598 1,469 •64 299 1,106 581 , 549 1934—Dec. 31_. 8,780 4,025 101 64 996 1,026 27 1,810 4,756 2,108 •13 562 1,533 355 741 , 552 1935—Dec. 31 8,919 3,918 142 20 894 1,035 17 1,810 5,002 1,940 28 722 1,189 623 807 , 633 1936—Dec. 31__ 9,825 4,078 187 29 843 1,123 14 1,881 5,747 2,368 17 689 1,662 645 883 ,851 1937—Dec. 31.. 10,124 4,446 216 25 824 1,219 13 2,149 5,677 2,490 29 786 1,675 678 879 ,630 1938—June 30. 9,752 4,388 173 2€ 790 1,269 9 2,126 5,364 2,385 13 715 1,657 579 878 ,522 Dec. 31.. 10,113 4,444 1,531 138 25 243 1,353 5 1,149 5,669 2,636 11 732 1,893 597 982 L, 453 1939—Mar. 29_.10, 098 4,480 1,597 142 24 226 1,363 6 1,121 5,618 2,578 15 585 1,978 643 1,001 L, 397 June30__ 10,109 4,605 1,626 140 22 229 1,402 5 1,180 5,504 2,444 11 563 1,870 683 1,025 L, 351 1 Classifications indicated were revised as of Dec. 31, 1938; for explanation see BULLETIN for January 1939, pp. 22-23, and the April BULLETIN, pp. 259-264. 2 Not reported separately prior to December 1938 except for weekly reporting banks in leading cities. 3 Figures in this column prior to Dec. 31,1938, represent all loans on securities, regardless of purpose, excepting only loans on securities to banks and to brokers and dealers. 4 This is a residual item and because of the revised loan classifications figures beginning Dec. 31, 1938, are not comparable with earlier figures. 5 Includes obligations of territorial and insular possessions when reported separately. 6 Includes Treasury certificates of indebtedness. 7 For estimated figures for Dec. 31, 1938, on basis comparable with earlier figures see p. 332 of the April BULLETIN. 8 Central reserve city banks. Back figures.See Annual Report for 1937 (tables 52-58). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1939 FEDERAL RESERVE BULLETIN 791 CONDITION OF ALL MEMBER BANKS—Continued [In millions of dollars] Demand deposits, Time deposits, Interbank except interbank except interbank deposits Reserves Bal- De- Indi- Indi- Domestic with ances mand vid- States Certi- vid- States banks Cap- Call date b s F e a R e e r n r e a d v k - l - e s v C a i a n u s l h t m b w a d e i n o s t k - h ti s c ' j p u o s d a t s d e e i - - d ts 2 s p u n a h a a e n i r l p r d s t - s - , , p d s a i o u i c n v l b a i d i - l t - - ch c a o f e e i f n e c f r d i d k s - ' s, m U G e e . r o n n S v - t - . 4 s p u h n a a a n i e l r p r d s t - s - , , p d s a i o u i c n v l a b d i i l t - - - P i s n o a g s v s t - a 4 l De- Time b F e a i o n g r k n - s r B i o n o w g r s - - co i a t u c a n - l ts cor- sions etc.' cor- sions mand pora- porations tions TOTAL—ALL MEMBER BANKS 1929— Dec. 31 2,374 558 2,168 16, 647 17, 526 1,335 1,681 143 12,267 595 122 3,517 95 698 879 6,709 1933—June 30 2,235 405 2,008 12,089 11,830 1,087 657 806 7,803 300 788 3,057 89 146 191 4,837 1934—Dec. 31 4,082 609 3,149 15, 686 14, 951 1,799 838 1,636 9,020 294 452 4,569 134 154 13 5,054 1935—Dec. 31 5,573 665 3,776 18, 801 18,035 2,139 882 844 9,680 361 218 5,696 151 449 6 5,145 1936—Dec. 31_ 6,572 697 4,066 21, 647 20,970 2,329 881 882 10, 429 296 104 6,402 153 438 15 5,275 1937—Dec. 31 7,005 589 3,414 20, 387 19, 747 2,132 767 781 10, 806 482 95 5,436 129 464 12 5,371 1938—June 30. 8,004 712 4,084 20,893 19, 816 2,314 662 543 10, 874 454 83 6,096 135 331 11 5,368 Dec. 31 8,694 746 4,240 22,293 21,119 2,386 547 790 10,846 462 61 6,510 132 511 6 5,424 1939—Mar. 29 9,112 777 4,403 22,364 20,845 2,467 533 775 10, 940 461 68 6,816 133 629 7 5,467 June 30. 10, 011 712 4,674 23, 587 22, 448 2,532 790 694 11, 063 441 59 7,097 142 607 5 5,496 NEW YORK CITY 6 1929—Dec. 31 827 68 179 4,750 5,847 128 1,180 20 1,112 33 18 1,198 40 597 179 2,105 1933—June 30 846 46 101 4,358 4,676 96 461 332 671 4 110 1,255 22 128 8 1,582 1934—Dec. 31 1,576 86 103 5,069 5,370 229 540 792 591 4 56 1,798 1 133 1,565 1935—Dec. 31 2,541 65 111 6,193 6,479 323 524 224 591 12 3 2,338 414 1,573 1936—Dec. 31 2,658 61 133 6,929 7,274 285 457 225 679 13 2,493 397 12 1,585 1937—Dec. 31 2,738 56 120 6,111 6,507 189 404 382 696 49 2,108 423 1,606 1938—june 30 3,517 65 119 6,698 6,900 273 367 123 694 32 2,514 291 1,587 Dec. 31 4,104 68 109 7,168 7,273 280 195 139 652 36 2,687 442 1,593 1939—Mar. 29 4,582 63 156 7,605 7,677 260 272 135 655 53 2,731 553 1,592 June 30 4,975 61 112 8,012 8,281 288 472 84 653 46 2, 992 524 1,586 CITY OF CHICAGO 6 1929—Dec. 31 169 13 133 957 1,041 42 32 8 332 58 2 310 19 33 41 316 1933—June 30 232 34 203 912 870 87 16 46 358 1 6 259 2 204 1934—Dec. 31 415 40 207 1,189 1,073 182 23 46 381 1 445 2 226 1935—Dec. 31 511 39 209 1,401 1,301 208 27 98 413 522 4 1935—j)ec 3i 558 32 188 1,554 1,495 191 27 72 449 599 5 244 1937—Dec. 31 596 27 179 1,438 1,354 207 23 64 445 8 528 6 255 1938—June 30 936 31 208 1,523 1,386 221 23 86 443 16 688 6 240 Dec 31 884 35 235 1,688 1,597 181 29 83 452 9 658 9 257 1939—Mar. 29 705 22 178 1,250 1,182 141 26 83 452 12 834 10 261 June 30 897 26 235 1,666 1,565 197 22 60 471 17 746 12 270 RESERVE CITY BANKS 1929—Dec. 31 751 156 947 5,229 5,547 423 300 76 4,433 371 41 1,604 30 64 292 2,029 1933—June 30 705 122 1,002 3,764 3,708 349 108 312 2,941 208 388 1,315 59 15 16 1,533 1934—Dec 31 1,268 207 1,543 5,136 4,919 585 169 620 3,494 206 186 1,984 117 18 1,614 1935—Dec. 31 1,594 256 1,779 6,161 6,001 707 204 385 3,796 266 79 2,422 134 29 1,657 1936—Dec. 3i 2,108 285 1,816 7,126 7,023 843 230 407 4,026 203 35 2,826 137 34 1,697 1937— Dec. 31 __ 2,310 200 1,470 6,870 6,743 777 192 256 4,161 266 34 2,389 107 34 1,735 1938—June 30 2,289 300 1,951 6,934 6,668 812 146 266 4,238 262 31 2, 514 113 32 1,753 Dec. 31 2,354 321 1,940 7,214 7,034 796 170 424 4,233 269 17 2,719 108 57 1,777 1939—Mar. 29. 2,459 342 2,106 7,326 6,899 889 123 420 4,276 243 22 2,813 108 64 2 1,795 June 30 _ 2,735 318 2,210 7, 654 7,331 917 160 415 4,320 233 19 2,920 115 69 1,812 COUNTRY BANKS 1929—Dec. 31 627 321 908 5,711 5,091 742 169 39 6,390 133 61 405 6 3 367 2,258 1933—June 30. 452 203 702 3,054 2,576 555 72 116 3,833 86 285 228 7 1 167 1,517 1934—Dec. 31 822 275 1,296 4,292 3,589 804 106 178 4,554 84 210 342 16 2 13 1,650 1935—Dec. 31 927 305 1,676 5,047 4,254 901 127 137 4,879 83 136 415 16 1 6 1,687 1936—Dec. 31 1,247 319 1,929 6,039 5,177 1,011 167 178 5,275 80 69 483 16 2 3 1,750 1937—Dec. 3i _ 1,361 307 1,645 5,968 5,143 959 149 78 5,504 158 61 412 21 1 12 1,775 1938—June 30 1,263 316 1,806 5,738 4,863 1,008 126 68 5,499 144 52 380 22 2 11 1,778 Dec. 31 1,353 322 1,956 6,224 5,215 1,128 154 143 5,509 147 44 446 23 2 6 1,798 1939—Mar. 29 1,367 350 1,963 6,183 5,087 1,176 114 137 5,557 153 46 438 25 2 5 1,818 June 30 1,403 307 2,117 6,255 5,272 1,130 135 136 5,619 145 40 439 26 2 5 1,828 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 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. »Includes "Due to Federal Reserve banks (transit account)," known as "Due to Federal Reserve banks (deferred credits)" prior to Dec. 31, 1935. 4 U. S. Treasurer's time deposits, open account, are combined with postal savings (time) deposits. s Central reserve city banks. Back figures.—See Annual Report for 1937 (tables 52-58). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

792 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 CONDITION OF REPORTING MEMBER BANKS IN 101 LEADING CITIES [Monthly data are averages of Wednesday figures. Inmillions of dollars] 1 Loans1 Investments1 Loans for U. S. Government obligations Com- purchasing Date or Month m T l v o a e i e o n a n n s t n d - t t a - s s l Totali t m d c a r i u i n i e n a a d s r - l - l - , , p O m k a p p a e e r t e n - r b o r T s o r o e k c c - a u r r r i y ti i e n s g e l R o st a e a n a t s l e b L a o t n o a k n s s O lo th an e s r Totali Direct G a u n a - r- r s O i e t t c i h e u e s - 1 r a cu g l r - i- a e n rs d ot T he o rs Total Bills2 Notes Bonds teed tural dealers TOTAL—101 CITIES 1938 Julv 20, 530 8, 213 3,878 334 629 577 1,159 121 1,515 12, 317 7,703 1 567 3 047 1939—January 21,468 8,338 3,800 325 852 547 1,170 100 1,544 13,130 8,191 1 728 3 211 February 21, 527 8,197 3,760 323 795 533 1,145 102 1,539 13,330 8,178 1,891 3,261 March 21, 705 8,241 3,792 310 831 529 1,137 94 1,548 13, 464 8,186 410 2,201 5,575 2 027 3 251 April 21, 727 8,127 3,848 305 697 537 1,144 69 1,527 13, 600 8,225 342 2,011 5,872 2,033 3,342 May 21, 693 8,091 3,839 303 678 539 1,151 58 1,523 13, 602 8,296 398 2,033 5.865 2,033 3,273 June . ._ ___ 21, 887 8,094 3,830 304 671 541 1,159 52 1,537 13, 793 8,383 422 2,106 5, 855 2,119 3,291 July 22, 046 8,146 3,888 312 648 532 1,163 64 1,539 13, 900 8,499 461 2,132 5,906 2,158 3,243 1939—May 31 21, 680 8,126 3,822 308 721 539 1,156 59 1,521 13, 554 8,237 333 2,053 5, 851 2,055 3,262 June 7 21, 795 8,116 3,833 309 699 540 1,155 52 1,528 13, 679 8,318 395 2,080 5,843 2,092 3,269 June 14 21,878 8,097 3,831 307 674 540 1,160 54 1,531 13, 781 8,390 423 2,112 5,855 2,108 3,283 June 21_. _ _ 21,923 8,072 3.823 298 661 542 1,159 52 1,537 13,851 8,404 440 2,121 5,843 2,127 3,320 June 28 21,951 8,089 3,833 303 648 543 1,161 51 1,550 13, 862 8,423 431 2,112 5,880 2,148 3,291 July 5 22,000 8,142 3,872 314 650 542 1,159 56 1,549 13,858 8,485 469 2,125 5,891 2,150 3,223 July 12 22,023 8,131 3,887 313 644 530 1,163 58 1,536 13,892 8,493 454 2,134 5,905 2,153 3,246 July 19 22,025 8,116 3,893 311 615 528 1,164 71 1, 534 3,909 8, 505 4f8 2,132 5, 915 2,159 3,245 Julv 26 22,135 8,194 3,899 312 681 528 1,165 71 1,538 13, 941 8,514 465 2,137 5,912 2,168 3,259 Aug 2 22, 244 8,166 3,887 313 655 526 1,168 74 1,543 14,078 8,515 473 2,132 5,910 2,241 3,322 Aug. 9 22, 274 8,156 3,917 310 631 522 1,170 74 1,532 14,118 8,530 480 2,155 5,895 2,259 3,329 Aug. 16 22, 337 8,186 3,912 313 676 519 1,172 60 1,534 14,151 8,544 495 2,159 5,890 2,267 3,340 NEW YORK CITY 1938—July 7,492 2,922 1,457 131 497 194 118 93 432 4,570 2,821 723 1,026 1939—January 7,645 2,982 1,371 128 694 192 117 79 401 4,663 2,711 852 1 100 February 7,676 2,901 1,357 125 644 187 110 82 396 4,775 2,634 974 1 167 March.. . _ 7,904 2,932 1,364 120 675 190 109 77 397 4,972 2,743 91 802 1, 850 1,053 1,176 April 8,010 2,795 1,379 117 555 195 110 56 383 5,215 2,946 146 741 2,059 1,045 1,224 May .... 7,958 2,759 1,372 120 529 198 111 44 385 5,199 3,024 170 727 2,127 1,034 1,141 June 8,103 2,758 1,375 121 523 201 113 39 386 5,345 3,139 168 808 2,163 1,060 1,146 July 8,138 2,765 1,408 120 497 191 115 54 380 5,373 3,174 146 821 2,207 1,098 1,101 1939—May 31 8,000 2,798 1,364 125 568 200 111 45 385 5,202 3,028 147 744 2,137 1,044 1,130 June 7 8,052 2,781 1,369 124 553 200 112 38 385 5,271 3,100 159 787 2,154 1,033 1,138 June 14 ._ _ _ 8,090 2,760 1,374 123 524 201 113 41 384 5,330 3,133 167 816 2,150 1,054 1,143 June 21 8,135 2,748 1,372 120 517 201 113 39 386 5,387 3,149 173 819 2,157 1,065 1,173 June 28 8,133 2,743 1,384 119 496 201 113 40 390 5,390 3,172 172 811 2,189 1,087 1,131 July 5 8,136 2,771 1,405 126 495 200 114 45 386 5,365 3,196 167 823 2,206 1,094 1,075 July 12 8,140 2,758 1,409 120 496 190 115 49 379 5,382 3,184 144 826 2,214 1,093 1,105 July 19 8,092 2,732 1,405 118 472 187 115 60 375 5,360 3,154 125 818 2,211 1, 100 1,106 July 26 8,182 2,797 1,414 118 523 188 115 60 379 5,385 3,161 147 817 2,197 1,106 1,118 Aug. 2 _ 8,309 2,806 1,438 117 501 186 116 64 384 5,503 3,201 194 818 2,189 1,127 1,175 Aug. 9 _ 8,332 2,807 1,464 114 484 186 116 64 379 5, 525 3,217 206 835 2,176 1,133 1,175 Aug. 16 8,386 2,846 1,471 117 525 184 118 50 381 5,540 3,225 220 834 2,171 1,136 1,179 OUTSIDE NEW YORK CITY 1938—July 3,038 5,291 2,421 203 132 383 1,041 28 1,083 7,747 4,882 844 2,021 l9Hy Januarv 3 823 5 356 2,429 197 158 355 1,053 2i 1,143 8,467 5,480 876 2 111 February 3 851 5,296 2,403 198 151 346 1,035 20 1,143 8,555 5,544 917 2 094 March 3,801 5,309 2,428 190 156 339 1,028 17 1, 151 8,492 5, 443 319 1,399 3,725 974 2,075 April 3,717 5,332 2,469 188 142 342 1,034 13 1,144 8,385 5,279 196 1,270 3,813 988 2,118 May 3,735 5,332 2,467 183 149 341 1,040 14 1,138 8,403 5,272 228 1,306 3,738 999 2,132 June 3,784 5,336 2,455 183 148 340 1,046 13 1,151 8,448 5,244 254 1,298 3,692 1,059 2,145 July 3,908 5,381 2,480 192 151 341 1,048 10 1,159 8,527 5,325 315 1,311 3,699 1, 060 2,142 1939—May 31— 3,680 5,328 2,458 183 153 339 1,045 14 1,136 8,352 5,209 186 1,309 3,714 1,011 2,132 June 7 3 743 5 335 2,464 185 146 340 1,043 14 1,143 8,408 5,218 236 1,293 3,689 1,059 2 131 June 14 3,788 5,337 2,457 184 150 339 1,047 13 1,147 8,451 5,257 256 1,296 3,705 1,054 2,140 June 21 3,788 5,324 2,451 178 144 341 1,046 13 1,151 8,464 5,255 267 1,302 3,686 1,062 2,147 June 28 . 3,818 5,346 2,449 184 152 342 1,048 11 1,160 8,472 5,251 259 1,301 3,691 1,061 2,160 July 5 3,864 5,371 2,467 188 155 342 1,045 11 1,163 8,493 5,289 302 1,302 3,685 1,056 2,148 July 12 3,883 5,373 2,478 193 148 340 1,048 9 1,157 8,510 5,309 310 1,308 3,691 1,060 2,141 July 19 _. 3,933 5,384 2,488 193 143 341 1,049 11 1,159 8,549 5, 351 333 1,314 3,704 1,059 2,139 July 26 3,953 5,397 2, 485 194 158 340 1,050 11 1,159 8,556 5,353 318 1,320 3,715 1,062 2,141 Aug 2 3,935 5,360 2,449 196 154 340 1,052 10 1,159 8,575 5,314 279 1,314 3,721 1,114 2,147 Aug. 9 . __ 3,942 5,349 2,453 196 147 336 1,054 10 1,153 8,593 5,313 274 1,320 3,719 1,126 2,154 Aug. 16 3,951 5,340 2,441 196 151 335 1,054 10 1,153 8,611 5,319 275 1,325 3,719 1,131 2,161 NOTE.—For description of figures see BULLETIN for November 1935 (pages 711-738) or reprint, which may be obtained from the Division of Research and Statistics, and BULLETIN for June 1937, (pages 530-531). For back figures see BULLETIN for November 1935 (pages 711-738) or reprint. BULLETIN for December 1935 (page 876), Annual Report for 1937 (tables 65-67) and corresponding tables in previous Annual Reports. i Beginning February, 1939, amounts previously classified as loans or securities but indirectly representing bank premises or other real estate owned are classified among "other assets". These amounts on February 8, 1939, were $47,000,000 for loans, mostly real estate loans, and $53,000,000 for securities. There was also a transfer of certain loans theretofore erroneously classified as "Commercial, industrial, and agricultural" to "Other loans." * Not reported separately prior to Feb. 8. 1939. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1939 FEDERAL RESERVE BULLETIN 793 CONDITION OF REPORTING MEMBER BANKS IN 101 LEADING CITIES—Continued [Monthly data are averages of Wednesday figures. In millions of dollars.] Demand deposits, Time deposits, Interbank except interbank except interbank deposits Reserves Bal- De- Indi- Indi- Domestic Date or month b s w F e R e a e r i r n e a t d v - k h l - e s v C a i a n u s l h t m a b w n d a e o i c n s t - e h t k s i s c m p u o d a s a e t s d n e - i - t d d s 1 s p p u v n h a c o a a i o e n i d r r p l r r d a t s - - - s - - , , S p s d s a i t i o u i c o a n v b l a n t d i - i l e t - s - s c C h c a o f e e e e i t f n e c c f r r d i . t d s k - i ' s - , m U G e . r e o n n v S - t - . 2 s p u p v n h a c o a a i o e n i d l r r p r r d s a t - - - s - , - , S p s d s a i t i o u c i o a n v b l a t n d i - i l e t s - - s P i s o n a s g v t s a - 2 l m D a e n b - d ank T s ime b F e a i o n g r n k - s r B i o n o w g r s - - c C o i a a t u c p a - n - l ts tions tions TOTAL—101 CITIES 1938—July 6,675 403 2,435 15,021 15, 900 443 452 5,188 5,821 115 310 3,645 1939—January,.. 7,437 440 2, 56116,054 17,020 463 631 5,161 6,216 111 531 3,675 February.. 7,358 410 2,543 16,042 16, 997 461 631 5,170 6,175 113 563 3,682 March 7,427 410 2,580 16,032 15,638 1,327 560 625 4,976 224 6, 395 116 587 3,687 April 7,973 424 2, 596 16,455 16,000 1,372 428 620 4,974 235 6,473 116 638 3,695 May 8,361 423 2,644 16, 79616, 259 1,452 441 581 4,984 251 6,530 118 639 3,712 June 8,460 447 2,727 17,182 16. 633 1,470 419 545 4,996 229 6,607 121 606 3,721 July 8,645 448 2,765 17, 366 17, 008 1,317 406 541 5,006 216 6,763 127 620 3, 716 1939—May 31.. 8,449 427 2,702 16, 965 16, 464 1,498 478 551 4,987 238 6,556 119 635 3,719 June 7__. 8,417 456 2,670 17, 057 16, 390 1,496 473 544 4,985 237 6,570 121 623 3,726 June 14_. 8,470 448 2, 73517,212 16,770 1,479 424 544 4,991 227 6,631 122 605 3.719 June 21_. 8,475 431 2,747 17,238 16, 652 1,488 386 546 •\ 001 230 6,600 120 599 3,723 June 28_. 8,479 455 2,756 17, 220 16, 720 1,417 391 546 5,007 223 6,625 122 600 3, 715 July 5_._ 8,473 441 2, 75917,109 16, 790 1,331 488 546 5,009 214 6,800 122 624 3,715 July 12 8,649 464 2,790 17, 368 17,061 1, 310 385 541 5,001 217 6,797 127 615 3, 715 July 19__ 8,706 439 2,767 17,387 17,050 1,275 389 541 5,000 217 6,786 128 616 3, 715 July 26.. 8, 750 448 2,745 17, 601 17,132 1, 352 363 536 5, 014 218 6, 667 129 627 3,718 Aug. 2... 8,684 424 2,793 17, 46216, 808 1,492 532 537 5,019 218 6,884 128 623 3, 718 Aug. 9___ 8,791 446 2,777 17, 551 16,899 1, 438 369 536 5,028 217 6, 924 127 629 3, 721 Aug. 16.. 8,917 426 2,842 17, 64117, 271 1,399 461 532 5,019 220 7,055 128 655 3,722 NEW YORK CITY 1938—July 3,380 6,236 6,559 279 108 648 2,443 1,478 1939—January... 4,208 6,730 7,085 285 116 613 2. 661 1,479 February.. 4,288 6,844 7,209 299 116 621 2,639 495 1,484 March 4,309 6,966 7,075 242 395 114 587 2,743 517 1,483 April 4,651 7,287 7, 348 257 268 110 583 2,785 561 1,483 May 4,895 7,467 7,495 304 274 85 578 2,814 560 1,488 June 4,866 7,608 7,636 280 269 60 580 2,845 529 1,488 July 4,995 7,660 7,773 225 231 59 589 2,928 540 1, 479 1939—May 31_. 4,976 7,614 7,668 344 290 579 2,830 553 1,490 June 7... 4,842 7,590 7,574 292 316 575 2, 803 545 1,492 June 14_. 4,870 7,624 7,684 260 307 579 2,836 528 1,488 June 21.. 4,886 7,640 7,644 299 231 583 2,850 521 1,490 June 28.. 4,864 7,578 7,643 268 222 584 2,891 521 1,483 July 5.__ 4,881 7,524 7,706 203 294 587 2,940 541 1,477 July 12. _ 4,985 7,656 7,759 224 214 587 2,940 532 1,478 July 19__ 5,044 7,655 7,764 214 218 586 2,941 540 1,479 July 26^. 5,072 7,804 7,864 258 199 596 2,892 546 1,480 Aug. 2___ 4,953 7,715 7,701 343 361 597 2,987 545 1,481 Aug. 9___ 5, 005 7,791 7,760 306 210 603 2, 983 550 1,483 Aug. 16.. 5,145 7,875 7, 958 291 291 594 3,074 575 1,482 OUTSIDE NEW YORK CITY 1938—July 3,295 351 2,361 8,785 9,341 164 344 4,550 3,378 115 2,167 1939—January... 3,229 382 2,488 9,324 9,935 178 515 4,548 3,555 111 2,106 February.. 3,070 358 2,469 9,198 9,788 162 515 4,549 3,536 113 2,198 March 3,118 358 2,486 9,066 8,563 1,085 165 511 4,389 186 3,652 116 2,204 April 3,322 368 2, 514 9,168 8,652 1,115 160 510 4,391 192 3,688 116 2,212 May 3,466 367 2,567 9,329 8,764 1,148 167 496 4,406 209 3,716 118 2,224 June 3,594 380 2,651 9,574 8,997 1,190 150 485 4,416 188 3,762 121 2,233 July 3,650 383 2,688 9,706 9,235 1,092 175 482 4,417 172 3,835 127 2,237 May 31_. 3,473 367 2,620 9,351 8,796 1,154 188 485 4,408 200 3,726 119 2,229 June 7... 3,575 376 2,593 9,467 8,816 1,204 157 483 4,410 196 3,767 121 2,234 June 14_. 3,600 385 2,658 9,588 9,086 1,219 117 484 4,412 186 3,795 122 2,231 June 21.. 3,589 373 2,673 9,598 9,008 1,189 155 486 4,418 190 3,750 120 2,233 June 28.. 3,615 387 2,679 9,642 9,077 1,149 169 486 4,423 182 3,734 122 2,232 July 5... 3,592 372 2,683 9,585 9,084 1,128 194 484 4,422 173 3,860 122 2,238 July 12.. 3,664 397 2,713 9,712 9,302 1,086 171 480 4,414 174 3,857 127 2,237 July 19__ 3,662 377 2,691 9,732 9,286 1,061 171 482 4,414 171 3,845 128 2,236 July 26 3, 678 385 2,667 9,797 9,268 1,094 164 480 4,418 171 3,775 129 2,238 Aug. 2... 3,731 362 2,720 9,747 9,207 1,149 171 482 4,422 169 3,897 128 2,237 Aug. 9__. 3,786 384 2,704 9,760 9,139 1,132 159 484 4, 425 1P7 3,941 127 2,238 Aug. 16.. 3,772 366 2,766 9,766 9,313 1,108 170 482 4,425 170 3,981 128 2,240 i Demand deposits other than interbank and U. S. Government, less cash items reported as in process of collection a U. S. Treasurer's time deposits, open account, are combined with postal savings (time) deposits. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

794 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 CONDITION OF REPORTING MEMBER BANKS IN 101 LEADING CITIES—Continued [In millions of dollars] Loans Investments Com- Loans for U. S. Government obligations Total mer- purchasing loans cial, or carrying Federal Reserve and in- Open securities Direct district and date ' in- dus- mar- Real Loans Other (1939) vest- Total trial, ket estate to Other Total Guar- securments and paper To loans banks loans an- ities a c g u r l i - - br e o r k s - To Total Bills Notes Bonds teed tural and others dealers BOSTON (6 cities) July 26 1,163 584 267 63 22 81 123 579 400 57 343 48 131 August 2 1,166 586 270 62 22 81 124 580 397 57 340 54 129 August 9 1,169 589 276 62 24 22 81 123 580 395 62 333 55 130 August 16 1,169 275 61 24 22 81 124 581 396 1 62 333 55 130 NEW YORK (8 cities)* July 26 9,005 3,150 1,520 126 528 247 202 467 5,855 3,393 147 867 2,379 1,186 1,276 August 2 9,136 3,160 1,546 124 506 245 203 472 5,976 3,430 194 868 2,368 1,210 1,336 August 9 9,162 3,163 1,573 122 489 245 203 467 5,999 3,443 206 885 2,352 1,218 1,338 August 16 9,216 3,201 1, 579 125 530 243 205 469 6,015 3,452 220 884 2,348 1,222 1,341 PHILADELPHIA (4 cities) July 26 1,131 416 186 26 21 32 54 96 715 352 39 313 97 266 August 2 1,147 420 189 26 21 32 55 96 727 353 39 314 98 276 August 9 1,154 419 189 26 21 31 54 97 735 358 39 319 99 278 August 16 1,156 417 26 20 31 55 96 739 358 39 319 98 283 CLEVELAND (10 cities) July 26 1,893 668 240 23 26 170 200 1,225 829 14 220 595 106 290 August 2 1,902 672 244 24 26 170 198 1,230 830 14 220 596 111 289 August 9 1,904 673 248 21 26 171 197 1, 231 832 14 220 598 111 288 August 16 1,912 678 250 24 26 171 197 1, 234 832 14 221 597 112 290 RICHMOND (12 cities) July 26 676 245 105 5 15 37 73 431 315 178 137 51 65 August 2 246 105 4 15 37 73 431 315 178 137 51 65 August 9 246 105 4 15 38 72 431 315 177 138 51 65 August 16 673 245 105 4 15 37 72 428 312 177 135 51 65 ATLANTA (8 cities) July 26 594 305 175 12 30 289 141 8 33 100 59 August 2 581 289 157 12 31 292 141 8 32 101 62 89 August 9 580 285 154 12 31 295 141 8 32 101 65 89 August 16 579 282 153 11 31 297 142 8 32 102 65 90 CHICAGO (12 cities)* July 26 3,239 878 503 103 115 2,361 1,611 251 430 930 267 483 August 2 3,194 854 479 103 114 2,340 1,575 212 428 935 283 482 August 9 3,194 853 483 104 2,341 1,575 210 430 935 283 483 August 16 3,202 852 480 104 2,350 1,579 211 430 938 287 484 ST. LOUIS (5 cities) July 26 693 315 188 50 52 378 210 6 50 154 66 102 August 2 694 318 189 51 52 376 207 4 49 154 67 102 August 9 690 314 185 51 51 376 207 3 49 155 67 102 August 16 683 308 178 51 52 375 207 3 49 155 67 101 MINNEAPOLIS (8 cities) July 26 378 160 7 61 218 148 34 114 26 44 August 2 377 158 78 7 61 219 149 34 115 27 43 August 9 376 157 78 7 60 219 148 34 114 28 43 August 16 376 158 78 7 61 218 148 34 114 27 43 KANSAS CITY (12 cities) July 26 661 275 165 25 51 386 197 6 78 113 56 133 August 2 661 271 160 25 52 390 196 6 76 114 60 134 August 9 661 271 161 25 51 390 195 5 78 112 61 143 August 16 664 272 162 25 52 392 197 5 81 111 61 134 DALLAS (9 cities) July 26 512 256 170 21 45 256 158 29 51 78 43 55 August 2 513 254 168 21 46 259 160 31 51 78 44 55 August 9 510 251 164 21 46 259 159 30 50 79 45 55 August 16 507 250 163 21 46 257 158 29 51 78 45 54 SAN FRANCISCO (7 cities) July 26 2,190 942 301 385 179 1,248 760 4 100 656 163 325 August 2 2,196 938 302 384 177 1,258 762 4 100 658 174 322 August 9 2,197 935 301 384 176 1,262 762 4 99 659 176 324 August 16 2, 200 935 301 384 175 1,265 763 4 99 660 177 325 CITY OF CHICAGO* July 26 2,141 547 357 14 50 1,594 1,131 243 242 646 137 326 August 2 2,111 540 351 14 50 1,571 1,096 206 240 650 150 325 August 9 2,112 538 355 14 50 1,574 1,098 205 242 651 149 327 August 16 2,117 539 352 14 50 1,578 1, 102 206 243 653 149 327 * Separate figures for New York City are shown in the immediately preceding table, and for the city of Chicago in this table. The figures for the New York and Chicago districts, as shown in this table, include New York City and Chicago, respectively. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

795 SEPTEMBER 1939 FEDERAL RESERVE BULLETIN CONDITION OF REPORTING MEMBER BANKS IN 101 LEADING CITIES—Continued [In millions of dollars] Demand deposits, Time deposits, Interbank except interbank except interbank deposits Reserves Bal- De- Indi- Indi- Domestic d F is e t d ri e c r t ( a 1 l 9 a 3 R n 9 e ) d s e d rv a e te b s w F e R a e e r i r n e a t d v - k h l - e s v C a i a n u s l h t b m a w a n d e i n o c s t - e k h t s i s c j m p u o a d s a s d e t n e i - - t d d s 1 s p u v n h a a a i e n i d r p l r d s t - - s - , , S p d s a i t o u c i a n v l b a t d i i e - l t - - s c C h c a o f e e e i f n e f r c r d i d t s k - i ' - s,m U G e e . r o n n S v t - - 2 . s p u v n h a a a i e n i d l r p r d s t - - s - , , S p d s a i t o u i c a n v l b a t d i i - e l t - - s P i s n o a g v s s t - a 2 l De- banks b e F a i o n g r k n - s r B i o n o w g r s - - c C o i a a t u c a p - n l - ts cor- sions etc. cor- sions mand Time pora- porations tions BOSTON (6 cities) July 26 423 141 156 1,120 1,076 87 245 287 25 243 August 2 412 139 171 1,123 1,086 87 245 292 24 243 August 9 415 140 155 1,118 1,072 83 245 288 24 243 August 16 401 139 150 1,097 1,067 80 245 287 25 244 NEW YORK (8 cities)* July 26 5,216 81 180 8,343 8,321 356 963 2,964 548 1,603 August 2 5,099 78 180 8,267 8,166 451 964 3,058 547 1,604 August 9 5,152 80 178 8,347 8,210 423 232 970 3,052 552 1,606 August 16 5,291 77 178 8,426 8,412 412 307 961 3,145 577 1,605 PHILADELPHIA (4 Cities) July 26 356 17 841 65 276 338 14 222 August 2 362 16 198 844 105 277 336 13 223 August 9 370 17 188 828 105 277 341 14 223 August 16 373 16 187 851 94 275 347 13 223 CLEVELAND (10 cities) July 26 462 277 1,230 1,186 108 709 346 372 August 2 455 281 1,227 1,175 113 710 350 371 August 9 444 275 1,216 1,153 112 711 347 371 August 16 450 274 1,220 1,176 123 711 352 371 RICHMOND (12 cities) July 26 161 171 462 442 51 197 242 August 2 163 171 458 439 55 197 247 96 August 9 169 170 465 442 53 197 250 96 August 16 170 180 465 449 54 197 256 96 ATLANTA (8 cities) July 26 116 172 381 353 63 40 177 230 93 August 2 135 177 379 354 64 39 178 243 93 August 9 139 186 383 355 65 39 179 251 92 August 16 137 199 385 365 39 179 254 93 CHICAGO (12 cities)* July 26 1,100 490 2,520 2,327 323 104 975 402 August 2 1,142 499 2,453 2,271 311 105 909 1,043 402 August 9 1,167 499 2,459 2,264 305 105 910 1,065 402 August 16 1,164 2,464 2,301 297 104 911 1,077 402 ST. LOUIS (5 cities) July 26 188 148 461 464 37 20 187 285 August 2 179 158 456 456 39 20 187 292 93 August 9 184 161 457 457 38 20 187 294 94 August 16 166 460 467 36 20 187 292 94 MINNEAPOLIS (8 cities) July 26 120 293 246 2 118 127 58 August 2 124 290 246 2 119 134 • 58 August 9 91 127 246 63 2 119 140 58 August 16 90 127 250 59 2 119 139 58 KANSAS CITY (12 cities) July 26 173 505 492 67 22 140 388 101 August 2 183 299 499 488 70 22 140 401 101 August 9 188 301 509 487 72 22 140 402 101 August 16 181 317 519 506 69 22 140 403 101 DALLAS (9 cities) July 26 119 246 456 432 48 30 128 207 85 August 2 127 240 453 430 49 30 127 213 85 August 9 125 246 448 430 42 32 127 217 85 August 16 124 260 456 449 41 32 127 218 85 SAN FRANCISCO (7 cities) July 26 349 973 952 78 106 966 278 350 August 2 338 295 971 953 82 107 966 275 349 August 9 347 291 976 955 77 106 966 277 350 August 16 348 292 980 978 74 106 967 285 350 CITY OF CHICAGO* July 26 857 225 1,716 1,606 190 60 475 740 265 August 2 893 231 1, 680 1,575 186 60 476 788 266 August 9 922 221 1,682 1,575 179 60 477 810 266 August 16 923 226 1,686 1,597 175 60 478 815 265 * See note on preceding page. 1 Demand deposits other than interbank and U. S. Government, less cash items reported as in process of collection. 2 U. S. Treasurer's time deposits, open account, are combined with postal savings (time) deposits. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

796 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 COMMERCIAL PAPER, ACCEPTANCES, AND BROKERS' BALANCES COMMERCIAL PAPER AND BANKERS' ACCEPTANCES OUTSTANDING [In millions of dollars] Dollar acceptances outstanding By holders By classes Com- End of month p m c a i p e a r e l - r Total Held b b y an ac k c s epting H R e e ld se b rv y e F b e a d n e k ra s l Based out- out- on Based stand- stand- For ac- Held im- on ex- Dollar ing i ing count of by ports ports ex- Own Bills For foreign others into from change Total bills bought own ac- corre- U. S. U. S. count spondents 1938—July 211 265 217 133 84 1 47 78 63 1 August 209 258 216 129 87 42 83 58 2 September 212 261 221 129 92 40 89 57 2 October 213 270 223 130 93 46 94 57 3 November 206 273 222 124 98 51 94 59 3 December 187 270 212 121 91 (2) 58 95 60 3 1939—January 195 255 204 122 82 52 89 57 February 195 248 198 122 76 50 87 57 March 191 245 191 117 74 54 87 58 April 192 238 189 118 72 49 86 56 May 189 247 192 124 68 55 82 51 June 181 245 191 122 69 53 81 45 July 194 236 188 119 69 48 75 41 ot ot ot •- Based on goods stored in or shipped between points in Foreign U. S. countries 60 63 55 60 56 57 59 56 59 57 57 56 52 55 48 54 42 56 38 57 19 36 59 20 39 60 19 39 61 1 As reported by dealers; includes some finance company paper sold in open market. 2 Less than $500,000. Back figures.—See Annual Report for 1937 (table 70). 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' Debit Debit credit balances 1 Other credit balances End of month Customers' balances in balances in Cash on Money debit partners' firm hand bor- In In balances investment investment and in rowed 2 partners' firm In (net) i and trading and trading banks Free Other invest- invest- capital accounts accounts (net) ment and ment and accounts trading trading (net) accounts accounts 1937—March 1,549 61 175 223 1,172 346 115 29 18 419 June 1,489 55 161 214 1,217 266 92 25 13 397 September 1,363 48 128 239 1,088 256 S6 26 12 385 December 985 34 108 232 688 278 85 26 10 355 1938—March 831 29 95 215 576 239 81 25 9 315 June 774 27 88 215 495 258 89 22 11 298 July 843 28 80 209 528 284 82 22 10 303 August 864 29 84 2C0 571 272 77 20 9 301 September.. . _ 823 29 76 213 559 257 68 20 7 300 October 905 32 85 196 617 270 73 20 8 304 November 939 30 78 189 662 252 65 20 8 303 December . 991 32 106 ISO 754 247 60 22 5 305 1939—January 971 34 75 192 713 235 60 22 12 298 February.. 967 29 83 168 709 222 62 20 5 294 March 953 27 84 174 699 225 59 20 9 294 April .. 831 26 83 190 579 236 60 20 7 290 May 828 26 76 183 561 230 69 21 6 284 June. . 834 25 73 178 570 230 70 21 6 280 July 839 24 84 183 589 238 67 20 6 278 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. Back figures—See BULLETIN for March 1938, p. 196, and (for data in detail) Annual Report for 1937 (table 69). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1939 FEDERAL RESERVE BULLETIN 797 FEDERAL RESERVE BANK DISCOUNT RATES [Per cent per annum] Advances secured by direct obligations of Rediscounts and advances un- Advances under sec. the United States der sees. 13 and 13a of the Fed- 10(b) of the Federal (last paragraph of eral Reserve Act 1 Reserve Act sec. 13 of the Federal Federal Reserve Bank Reserve Act) Rate Pre- Rate Rate Aug. In effect vious Aug. In effect Aug. In effect 24 beginning- rate 24 beginning— 24 beginning- Boston _ - Sept. 2, 1937 2 2 Sept. 2, 1937 April 29, 1938 New York 1 Aug. 27, 1937 2 Oct. 10, 1935 Feb. 8, 1934 Philadelphia . . __ Sept. 4, 1937 2 2 Sept. 4, 1937 4 Oct. 20, 1933 Cleveland May 11, 1935 2 2 Oct. 19, 1935 May 11, 1935 Richmond .. __ __ _. - ... Aug. 27, 1937 2 2 Sept. 10, 1937 4 Feb. 19, 1934 Atlanta Aug. 21, 1937 2 2 Aug. 21, 1937 April 23, 1938 Chicago . . ___ . . . Aug. 21, 1937 2 2 Aug. 21, 1937 4 Oct. 16, 1933 St Louis Sept. 2, 1937 2 2 Sept. 2, 1937 4 Feb. 23, 1935 Minneapolis .. _ ._ Aug. 24, 1937 2 2 Aug. 24, 1937 3 Oct. 8, 1938 Kansas City Sept. 3, 1937 2 2 Sept. 3, 1937 Apr. 16, 1938 Dallas .-. . .- Aug. 31, 1937 2 2 Aug. 31, 1937 2V0 Apr. 16, 1938 San Francisco Sept. 3, 1937 2 2 Sept. 17, 1937 4 Oct. 19, 1933 i Rates indicated also apply to United States Government securities bought under repurchase agreement. Back figures.—See Annual Report for 1937 (table 40). FEDERAL RESERVE BANK FEDERAL RESERVE BANK BUYING RATES ON ACCEPTANCES RATES ON INDUSTRIAL ADVANCES [Per cent per annum] Rates in effect, August 24, 1939, on advances and commitments under Sec. 13b, of the Federal Reserve Act as amended June 19, 1934. [Per cent per annum except as otherwise specified] Rate in Maturity effect on In effect be- Previous Advances to financ- Aug. 24 ginning— rate ing institutions— Advances direct to Commit- 1-15 days 1._. Oct. 20, 1933 Federal Reserve Bank industrial On por- ments 16-30 days.__. .do. or com- tion for to make 31-45 days.... .do.. mercial or- which On re- advances 46-60 days.... .do., ganizations institu- maining 61-90 days .do., tion is portion 91-120 days... .do.. obligated 121-180 days.. _do_. Boston _ 3H-6 3 3H K-l 1 This rate also applies to acceptances bought under repurchase agree- New York 4-6 3 4-5 1-2 ments, which agreements are always for a period of 15 days or less. Philadelphia 4-6 NOTE.—Minimum buying rates at the Federal Reserve Bank of Cleveland 4 1 r r N a a e t t e e w s s a m Y p o p a r y l k y b t o e o n p c h u p a r r c i r m g h e a e d s e b s f a o , n r i f k o e a t r n h s y e ' r , a m c c c l a a e d s p e s t e a b s n y c o e o f s t b h p i e l a r l y s F . a e b d l T e e h ra e in l s R a d m e o s l e e la r r v m s e ; i n b h i a i m g n h u k e m s r . A R Ch i t c l i a c h n a m g ta o o nd . 5 5 - - 6 6 6 4-6 5 4 5 - - 6 6 5 1 1 - - 2 2 Back figures.—See Annual Report for 1937 (table 41). St. Louis. ... 4-5H 4 Minneapolis 6 1 Kansas City 4-6 2 4 4 Dallas 5-6 4 5-6 1 San Francisco 5-6 3-4 4-5 MAXIMUM RATES ON TIME DEPOSITS Maximum rates that may be paid by member banks as established by 1 Authorized rate 1 per cent above prevailing discount rate. the Board of Governors under provisions of Regulation Q. 2 Same as to borrower but not less than 4 per cent. 3 Flat charge. [Per cent per annum] Back figures.—See Annual Report for 1937 (table 40). MEMBER BANK RESERVE REQUIREMENTS Nov. 1,1933 Feb. 1, 1935 In effect to to beginning [Per cent of deposits] Jan. 31 1935 Dec. 31,1935 Jan. 1, 1936 June 21, Aug. 16, Mar. 1, May 1, Apr. 16, Savings deposits . 3 2M 2H Classes of deposits 1917- 1936- 1937- 1937- 1938- P O o th st e a r l S ti a m v e in g d s e p d o ep si o ts s it p s ay- 3 2H VA and banks Au 1 g 93 . 6 15, Fe 1 b 9 . 3 2 7 8, Ap 1 r 9 . 3 3 7 0, Ap 1 r 9 . 3 8 15, a a f n te d r able in: 6 9 0 m d o a n y t s h s to o 6 r m m o o r n e ths 3 3 2 V V A 2 2 On d e n p e o t s i d t e s: m i and Less than 90 days 3 VA 1 Central reserve city.. Reserve city Country 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 in effect for member All member banks. __ banks. In some States the maximum rates established by the Board and the Federal Deposit Insurance Corporation are superseded by 1 See footnote to table on p. 786 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

798 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 MONEY RATES AND BOND YIELDS OPEN-MARKET RATES IN NEW YORK CITY RATES CHARGED CUSTOMERS BY BANKS IN [Per cent per annum] PRINCIPAL CITIES [Weighted averages of prevailing rates; per cent per annum] Prevailing rate on— Average rate on— 1929 1932 1933 1934 1935 1936 1937 1938 1939 Aver- U. S. Treas- age New York City: Year, Prime Stock Stock ury bills yield on January ... 5.74 4.71 4.12 3.58 2.83 2.64 2.50 2.36 2.29 month, or Prime bank- ex- ex- U. S. February 5.73 4.71 4.11 3.43 2.90 2.56 2.41 2.34 2.24 week com- ers' change change Treas- March 5.81 4.72 4.88 3.31 2.64 2.61 2.50 2.40 0) mercial accept- time call New 91- ury April 5.58 4.69 4.33 3.39 2.61 2.54 2.53 2.36 paper, ances, loans, loan issues day 3-to-5 May 5.88 4.55 4.24 3.42 2.69 2.51 2.44 2.40 4 to 6 90 90 re- of- deal- year June.. 5.93 4.61 4.10 3.30 2.66 2.44 2.34 2.36 months days days new- fered ers' notes July 5.88 4.42 3.93 3.30 2.61 2.44 2.36 2.27 als within quo- August 6.05 4.45 3.97 3.33 2.67 2.42 2.41 2.16 period1 tation September 6.06 4.30 3.79 3.26 2.72 2.40 2.39 2.25— October.. 6.08 4.35 3.76 3.28 2.72 2.46 2.38 2.29 November 5.86 4.12 3 52 3.22 2 77 2.43 2.45 1936 average.._ .75 .15 1.16 .91 .143 .17 1.11 December . 5.74 4.22 3.48 3.18 2.61 2.43 2.40 2.33 1937 average___ .95 .43 1.25 1.00 .447 .28 1.40 1938 average... .81 .44 1.25 1.00 .053 .07 .83 Other northern and eastern cities: 1938—July H 7/16 IX 1.00 .053 .07 .70 January _ __ _ 5.87 5.07 4.89 4.65 4.08 3.62 3.36 3.37 3.41 A S O e u c p t g t . 5 5 A A % Z ~ K K 7 7 7 / / / 1 1 1 6 6 6 I I I X X X 1 1 1 . . 0 0 0 0 0 0 . . 0 0 0 9 2 4 6 3 7 . . 0 0 0 8 5 6 . .6 8 7 8 2 1 A F M e p a b r r i r c l u h a ry _ _ _ ... 6 5 5 . . . 0 8 9 0 6 1 5 5 5 . . . 1 1 1 4 0 3 4 5 5 . . . 3 8 0 9 4 9 4 4 4 . . . 5 5 4 2 2 9 4 4 3. . . 9 0 0 9 2 5 3 3 3 . . . 4 6 6 7 0 3 3 3 3 . . . 3 3 4 4 6 3 3 3 3. . . 2 2 2 6 9 5 3 0 . ) 33 N D o e v c % % -k 7 7 / / 1 1 6 6 I 1 X 34 1 1 . . 0 0 0 0 . . 0 0 2 0 4 7 . . 0 0 4 3 . . 7 6 1 7 J M u a n y e 6 6 . . 0 0 9 2 5 5 . . 1 1 4 3 4 4 . . 9 9 9 7 4 4 . . 3 3 9 0 3 3 . . 8 7 8 8 3 3 . . 4 5 5 1 3.45 3 3 . . 2 3 7 8 1939—Jan lA-hA 7/16 IX 1.00 .002 .03 .65 J A u u ly gust 6 6 . . 0 1 8 1 5 5. . 1 0 2 5 4 4 . . 8 6 2 8 4 4 . . 1 1 5 2 3 3. . 7 8 9 7 3 3 . .4 6 7 1 3 3 ^ .2 3 9 2 3 3 . . 2 2 8 6 Feb M-*A 7/16 IX 1.00 .004 .03 .63 September 6 24 5 03 4 65 4 11 3 75 3 45 3 33 3 30 Mar V2-5A 7/16 IX 1.00 .005 .03 .51 October 6.25 4.96 4.51 4.13 3.75 3.50 3.37 3.37 April.... xA-hA 7/16 IX 1.00 .019 .03 .50 November 6.12 4.88 4.54 4.08 3.63 3.47 3.42 3.28 J M u a n y e X Y2 -* ~ A 5A 7 7 / /1 1 6 6 I I X X 1 1 . . 0 0 0 0 . . 0 0 0 0 6 6 . . 0 0 3 3 . . 4 3 2 9 December ,_ _. 5.94 4.88 4.59 3.98 3.67 3.46 3.36 3.47 July V2-H 7/16 IX 1.00 .017 .04 .45 27 southern and western cities: Week ending: January 5.94 5.61 5.60 5.40 4.95 4.47 4.16 4.16 4.10 July 22..__ H-*A 7/16 IX 1.00 .019 .04 .44 February 5.96 5.61 5.56 5.39 4.84 4.51 4.15 4.09 4.09 July 29 Yi-y% 7/16 IK 1.00 .022 .04 .43 March. . _ _._ 6.04 5.64 5.66 5.40 4.85 4.44 4.15 4.15 0) Aug. 5 7/16 IX 1.00 .032 .04 .42 April 6.07 5.63 5.68 5.34 4.80 4.40 4.21 4.13 Aug. 12.... 7/16 IX 1.00 .032 .04 .43 May... __ __ _ 6.10 5.64 5.66 5.28 4.79 4.43 4.17 4.13 Aug. 19 7/U IK 1.00 .042 .04 .43 June 6.16 5.62 5.62 5.19 4.76 4.39 4.18 4.14 July 6.17 5.63 5.54 5.07 4.58 4.35 4.19 4.12 August 6 22 5 68 5 53 5 05 4 63 4 25 4 18 4 12 i Series comprises 273-day bills to October 15, 1937, bills maturing September 6.27 5.63 5.55 5.04 4.51 4.29 4.18 4.07— about March 16, 1938, from October 22, to December 10, 1937, and 91-day October 6.29 5.56 5.50 5.05 4.55 4.23 4.16 4.06 bills thereafter. November 6.29 5.55 5.42 4.93 4.51 4.24 4.17 4.05— Back figures—See Annual Report for 1937 (tables 43 and 44). Figures December 6.20 5.60 5.43 4.92 4.55 4.14 4.15 4.04 for 91-day Treasury bills available on request. 1 Series discontinued. New revised series on somewhat different basis to be substituted. BOND YIELDS1 [Per cent per annum] Corporate * U.S. Year, month, or week Treas- Munic- By ratings By groups ipal 3 Total Aaa Aa A Baa In tr d ia u l s- R ro a a i d l- P ut u i b li l t i y c Number of issues 2-6 15 120 30 30 30 30 40 40 40 1936 average 2.65 3.07 3 87 3.24 3 46 4 02 4.77 3 50 4 24 3 88 1937 average . . . 2.68 3.10 3.94 3.26 3.46 4.01 5.03 3.55 4.34 3.93 1938 average 2.56 2.91 4.19 3.19 3.56 4.22 5.80 3.50 5.21 3.87 1938—July 2.52 2.87 4.17 3.22 3.62 4.21 5.63 3.48 5.25 3.79 August 2.51 2.82 4.09 3.18 3.57 4.13 5.49 3.43 5.09 3.76 September . 2.58 3.02 4.17 3.21 3 60 4.20 5.65 3 50 5 18 3 82 October _. 2.48 2.82 4.03 3.15 3.53 4.08 5.36 3.43 4.94 3.73 November 2.50 2.74 3 95 3 10 3 46 4 02 5 23 3 39 4 83 3 65 December 2.49 2.75 3.95 3.08 3.42 4.02 5.27 3.40 4.82 3.63 1939—January 2.47 2.70 3.86 3.01 3.32 3.97 5.12 3.31 4.70 3.57 February __ 2.44 2.70 3 81 3.00 3 26 3.94 5.05 3 29 4 63 3 52 March _ _ _ 2.34 2.67 3.74 2.99 3.22 3.87 4.89 3.29 4.46 3.48 April 2.30 2.75 3 84 3 02 3 22 3 97 5 15 3 35 4 66 3 51 May 2.17 2.66 3.78 2.97 3.16 3.92 5.07 3.30 4.60 3.45 June .. _ _ ._ __ _ 2.13 2.63 3.71 2.92 3.13 3.86 4.91 3.23 4.47 3.42 July. 2.16 2.65 3.66 2.89 3.08 3.83 4.84 3.18 4.42 3.39 Week ending: July 29 2.14 2.64 3.63 2.90 3.06 3.79 4.79 3.17 4.37 3.38 Aug. 5 2 14 2 65 3 62 2 90 3 06 3 78 4.78 3 17 4 35 3 38 Aug. 12 2.17 2.66 3.63 2.91 3.07 3.79 4.79 3.17 4.37 3.39 Aug. 19 2.17 2.69 3.65 2.92 3.09 3.78 4.82 3.18 4.39 . 3.39 1 Monthly and weekly data are averages of daily figures, except for municipal bonds, which are based on Wednesday figures. 2 Average of yields of all outstanding bonds due or callable after 12 years; see BULLETIN for December 1938, pp. 1045-1046 for description. 3 Standard Statistics Co. 4 Moody's Investors Service, week ending Friday. Because of limited number of suitable issues, the industrial Aaa group has been reduced from 10 to 4, the industrial Aa group from 10 to 3, the industrial A group from 10 to 8, and the railroad Aaa group from 10 to 5. Back figures—See Annual Report for 1937 (table 80); for U. S. Treasury bonds, see pp. 1045-1046 of BULLETIN for December 1938. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

799 SEPTEMBER 1939 FEDERAL RESERVE BULLETIN BOND PRICES* STOCK MARKET Corporate 3 Stock prices 1 U.S. Munic- Year, month, or date Treas- ipal 3 Volury 2 Indus- Rail- Year, month, or Common (index, 1926—100) ume of Total trial road Utility date Pre- tradferred 2 ing 3 Indus- Rail- Number of issues 2-6 15 60 20 20 20 Total trial road Utility 1936 average. 103.7 110.8 97.5 92.2 105.4 1937 average 101.7 110.3 93.4 90.1 100.4 Number of issues 420 348 32 40 1938 average 103.4 113.7 78.9 82.9 58.6 95.3 1936 average 138.9 111 127 104 1,824 1938—July 103.8 114.2 80.8 85.0 60.2 97.3 1937 average 136.2 112 131 95 1,519 August 104.0 115.2 81.3 85.7 60.0 98.1 1938 average 135.6 83 73 1,100 September 103.0 111.7 78.7 84.2 55.7 96.3 October 104.3 115.2 81.8 86.8 59.9 98.6 1938—July. 135.6 105 77 1,762 November 104.0 116.6 82.1 86.9 60.2 99.3 August. 138.1 108 75 843 December 104.1 116.5 81.1 86.0 58.6 98.7 September 137.9 104 72 1,054 1939—January 104.4 117.3 81.9 86.2 59.7 99.7 October 140.4 110 77 1,889 February 104.8 117.3 82.1 86.4 59.0 100.7 November 142.3 114 81 1,355 March 106.0 117.9 83.1 87.1 60.9 101.3 December 141.7 111 78 1,195 April 106.6 116.4 79.4 83.8 54.5 99.7 1939—January 141.7 109 81 1,114 May 108.3 118.1 80.2 84.8 54.8 101.0 February 141.8 106 84 708 June 109.1 118.6 81.4 86.2 56.2 101.6 March 142.3 108 999 July 108.9 118.3 81.6 56.4 102.1 April. 140.4 96 964 May 141.8 97 548 July 26 _ 109.2 118.4 82.3 57.8 102.5 June 143.9 101 507 Aug. 2 109.2 118.2 82.4 57.6 102.8 July 143.7 101 821 Aug. 9 108.8 118.0 81.8 56.8 102.2 Aug. 16 108.8 117.5 81.5 56.2 102.1 July 26 143.3 105 Aug. 2 143.5 105 790 Aug. 9 142.9 102 573 i Monthly data are averages of daily figures except for municipal bonds, Aug. 16 142.9 100 632 which are averages of Wednesday figures. 3 Average prices of all outstanding bonds due or callable after 12 years, based on quotations from Treasury Department; see BULLETIN for 1 Standard Statistics Co. Monthly data are averages of Wednesday December 1938, pp. 1045-1046 for description. Prices expressed in figures. decimals. Figure for July 5, should be revised to 108.4. 2 Average prices of industrial high-grade preferred stocks, adjusted to a 8 Prices derived from average yields, as computed by Standard Sta- $7 annual dividend basis. tistics Co. 3 Average daily volume of trading in stocks on the New York Stock Back figures.—See Annual Report for 1937 (table 79); for U. S. Treasury Exchange, in thousands of shares. Weekly figures are averages for the bonds, see pp. 1045-1046 of BULLETIN for December 1938. week ending Saturday. Back figures.—For stock prices, see Annual Report for 1937 (table 79). CAPITAL ISSUES [In millions of dollars] For new capital For refunding Total Domestic Domestic (new Year or and Total Total month re- (do- Corporate (do- Corporate fund- mestic State Fed- For- mestic State Fed- Foring) and and eral eign i and and eral eign* for- Total mu- agen- Bonds for- Total mu- agen- Bonds eign) nici- cies 2 Total and Stocks eign) nici- cies 2 Total and Stocks pal notes pal notes 1929 11,513 10,093 9,420 1,418 0 8,002 2,078 5,924 673 1,420 1,387 13 0 1,374 542 833 33 1930 7,619 6,912 6,004 1,434 87 4,483 2,980 1,503 908 706 527 53 0 474 451 23 179 1931 4,038 ••3, 095 2,860 1,235 75 1,551 1,239 311 '235 '944 893 21 51 821 789 32 >"51 1932 1,751 1,197 1,165 762 77 325 305 20 32 554 498 87 93 319 315 4 56 1933 . 1,063 720 708 483 64 161 40 120 12 343 283 37 26 219 187 32 60 1934 2,160 1,386 1,386 803 405 178 144 35 0 774 765 136 317 312 312 0 9 1935 4,699 1,457 1,409 855 150 404 334 69 48 3,242 3,216 365 987 1,864 1,782 81 26 1936 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 1937 3,937 2,138 2,094 712 157 1,225 817 408 44 1,799 1,680 191 281 1,209 856 352 119 1938 4,461 2,359 2,323 971 481 872 807 65 35 2,102 2,075 129 665 1,280 1,249 31 28 1938—July 470 391 390 43 216 130 128 2 1 79 79 3 20 56 56 0 0 Aug 417 182 182 55 0 127 123 4 0 236 236 11 14 211 211 0 0 Sept 238 146 146 53 8 85 83 2 0 92 92 22 6 65 65 (3) 0 Oct 766 167 167 103 0 64 62 2 0 599 599 2 323 274 274 1 0 Nov 386 226 196 152 0 43 37 6 31 160 135 6 22 108 89 18 0 Dec 529 241 241 126 55 60 44 16 0 288 286 15 20 250 240 11 25 1939—Jan 257 200 200 76 118 6 5 1 0 57 57 27 19 10 10 (3) 3 Feb 561 398 378 44 310 24 17 7 20 163 163 10 17 136 101 35 0 Mar 240 162 162 105 4 53 43 10 0 78 75 13 15 47 46 (3) 0 Apr.. _. 356 143 142 63 2 77 47 31 (3) 213 161 11 21 129 106 23 3 May 1,312 117 117 94 2 21 18 3 0 1,195 1,180 7 1,021 151 131 20 53 June 605 293 283 253 0 30 22 9 10 312 312 39 21 252 249 2 16 July 586 318 318 66 203 49 40 9 0 268 268 18 74 177 137 39 0 r Revised. 1 Includes issues of noncontiguous U. S. Territories and Possessions. 2 Includes publicly-offered issues of Federal credit agencies, but excludes direct obligations of U. S. Treasury. 3 Less than $500,000. Source.—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 1937 (table 78). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

800 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 TREASURY FINANCE UNITED STATES GOVERNMENT DEBT VOLUME AND KIND OF DIRECT OBLIGATIONS I On basis of daily statements of United States Treasury. In millions of dollarsl Noninterest- Interest-hearing b earing Total Publicly-offered i End of month 2TOSS debt Ad- Social Bonds justed se- All Ma- Total service curity others tured Other interest Total Notes Bills issues3 issues4 debt bearing Pre- Treas- U. S. war ury* savings 1932—June 19.487 19,161 n8,816 753 13, 460 1,261 616 105 240 60 266 1933—June 22 539 22.158 *21, 782 753 13,417 4,548 954 92 284 66 315 1934—June 27. 053 26,480 <26,006 753 15,679 6,653 1,404 118 356 54 518 1935—June 28 701 27,645 26,910 753 14,019 62 10,023 2, 053 156 580 231 825 1936—June 33, 779 32, 989 31, 297 79 17, 168 316 11,381 2,354 1.071 19 601 169 620 1937—June 36, 425 35, 800 33,734 79 19 936 800 10,617 2, 303 926 579 560 119 506 1938—June 37 165 36, 576 33, 463 79 21 846 1,238 9,147 1,154 868 1,601 644 141 447 1938—July- 37 191 36 642 33,400 79 21,846 1.275 9. 147 1,054 864 1.641 738 106 443 August 37 593 37 052 33. 681 79 21,846 1, 305 9.147 1,304 859 ,757 754 102 440 September 38 393 37 850 34,493 79 22, 712 1,334 9,067 1,"02 830 ,788 739 106 437 October _ 38,423 37 897 34, 527 79 22, 712 1,367 9,067 1,302 826 ,807 736 94 433 November 38, 603 38 0f8 34, 559 79 22,712 l,3<-9 9,067 1,303 827 .937 745 105 431 December.. _ 39, 427 38 8P9 35, 327 79 24, 005 1,442 8,496 1,306 827 2,002 743 101 427 1939—January 39, 631 39, 097 35, 469 79 24, 005 1,580 8,496 1,309 826 2,046 756 109 425 February 39, 859 39, 326 35, 533 79 24, 005 1, 643 8,496 1,310 825 2,207 761 112 421 March 39. 985 39, 442 35, 579 79 25, 218 1, 701 7, 270 1,311 827 2,257 779 125 419 April 40,063 39. 525 35, 627 79 25, 218 1,751 7,270 1,309 826 2,294 780 122 416 May 40, 282 39, 751 35, 680 79 25,218 1,806 7. 270 1,308 825 2,442 805 117 414 June 40, 440 39. 886 35, 715 79 25, 218 1,868 7,243 1,308 839 2,511 820 142 411 July 40, 661 40,114 35, 798 79 25, 218 1,949 7,243 1,309 833 2,542 941 140 408 1 Excludes postal savings bonds, formerly sold to depositors in the Postal Savings System. 2 Includes Liberty bonds. 3 Includes adjusted service bonds of 1945 and special issues of adjusted service bonds and of notes to Government Life Insurance Fund series and of certificates to the adjusted service fund. 4 Includes special issues to old-age reserve account, unemployment trust fund, and railroad retirement account. 5 Includes postal savings bonds and special issues to retirement funds, to Postal Savings System and to Federal Deposit Insurance Corporation. 6 Includes certificates of indebtedness not shown separately: 1932—$2,726,000,000; 1933—$2,108,000,000; 1934—$1,517,000,000. MATURITIES OF PUBLICLY-OFFERED DIRECT OBLIGATIONS, JULY 31, 1939, FULLY GUARANTEED OBLIGATIONS, BY AGENCIES » fin millions of dollars! [In millions of dollars] Maturing Federal Home Recon- Com- U. S. Farm Owners' struction modity Hous- Bonds End of Total Mortgage Loan Finance Credit ing Date maturing Bo]ids call- Month Corpora- Corpora- Corpora- Corpora- Authoror callable Total Bills Notes able ! tion tion 2 tion tion ity U. S. Sav- Other 1934—June. _ 681 312 134 235 ings Dec._. 3,063 980 1,834 249 1935 June.. 4,123 1,226 2,647 250 1939—Before Oct. 1 918 906 11 Dec.__ 4,494 1,387 2,855 252 Oct. 1-Dec. 31 928 402 526 1936—June.. 4,718 1,422 3,044 252 1940—Jan. 1-Mar. 31 1,378 1,378 Dec... 4,662 1,422 2,988 252 Apr. 1-June 30 738 738 353 1937—June. 4,665 1,422 2,987 255 July 1-Sept 30 Dec... 4, 645 1,410 2, 937 297 Oct. 1-Dec. 31 737 737 1938—June _ 4,853 1,410 2,937 299 206 1941 2,219 1,385 834 1,379 1942 1,001 1,001 1938-July.. 5,064 1,410 2,937 510 206 1943___ 1,948 1,050 898 1,855 Aug... 5,015 1,410 2,888 511 206 1944 416 416 2, 555 Sept. _ 5,009 1,404 2,888 511 206 1945_ 2,118 177 1,941 1,755 Oct... 5,001 1,395 2.888 511 206 1946_.__ 1, 844 325 1, 519 2,372 Nov. . 4,993 1,388 2,888 511 206 1947 2,824 426 2,399 1,460 Dec.._ 4,992 1,388 2,888 509 206 1948_ 2,002 515 1,487 1,674 1939—Jan. ._ 1,987 1, 383 2,888 509 206 1949 1,326 2 507 819 2,278 Feb... 5, 410 1,381 2,888 819 206 114 1950 1,186 Mar._. 5,410 1,381 2,888 819 206 114 1951... 1,223 1, 223 2,382 Apr... 5,410 1,380 2,888 819 206 114 1952 2,436 2,436 May.. 5, 409 1,379 2,888 820 206 114 1953 1 786 1,786 June.. 5, 450 1,379 2,928 820 206 114 1954____ 2, 663 2, 663 July.. 5, 480 1,379 2,958 820 206 114 1955 755 755 2,611 1956 489 489 982 1958___ 919 1 Principal amount of obligations guaranteed as to interest and princi- 1959 982 982 pal. Excludes obligations held by U. S. Treasury and reflected in the 1960 2, 611 2,611 1,485 public debt. The total includes guaranteed debentures of the Federal 1 19 9 6 6 3 1.. 91 5 9 0 91 5 9 0 50 Ho 2 u E s x in c g lu d A e d s m ob in li i g s a tr t a io to n r s , g a u m ar o a u n n te ti e n d g a t s o t o $ 2 i , n 2 t 4 e 8 r , e 0 s 0 t 0 o o n n ly J . uly 31, 1939. 1965 1,485 1. 485 Total 35, 798 1 309 7, 243 1,949 25, 297 25 9£7 1 Excludes U. S. savings bonds. Other bonds in the amount of $2,577,- 000,000 not callable prior to maturity are shown as of date of maturity. 2 Includes unclassified U. S. savings bonds. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1939 FEDERAL RESERVE BULLETIN 801 SUMMARY OF TREASURY OPERATIONS [On basis of daily statements of United States Treasury. In millions of dollars] General and special accounts Receipts Expenditures 1 T a r c u - st I c n r c e r a e s a e s e d u o r r i n d g ecounts, per od General Excess etc. 7 of re- e o x f c r e e s - s Period Other Na- Re- Re- Trans- ( c + e ) i p o ts r ceipts Total c ta o I x n m - e e s ta i x ty es2 i n r n e n u t v a e e e l r 3 - - o A th l e l r Total e I d n s e t t e b o r t n - t f V i a e d o n n e e n d s t - a - e l o A th l e l r r c a e e o l n r i v y d e - f ( f n v u i e o n n t l g ) d v s - 5 f a e t e c r t r u c s c t s . t s 6 t o . p t e ( u e - n r x ) e d - s i- p ( t + e u (- ) n r ) e d o s i r - b G a f e l u a n n n e d c ra e l 7 G d r e o b s t s erans' Adm.4 Fiscal year ending: June 1936 . 4,116 1,427 (8) 2,086 603 8,666 749 1,340 1,310 3,441 11 1,814 -4, 550 +312 +840 +5, 078 June 1937 5 294 2,158 253 2,187 697 8,442 866 1,436 1,994 3,073 204 868 -3,149 +374 -128 +2, 646 June 1938 6,242 2,635 755 2,285 567 7, 626 926 1,556 2,178 2, 238 121 607 -1, 384 +306 -338 +740 June 1939 _. 5, 668 2,182 740 2, 238 507 9,210 941 1,627 2,761 3,105 92 685 -3, 542 +890 +622 +3, 275 1938—July 311 47 32 186 47 763 13 137 256 216 5 135 —451 +325 -100 +27 August 487 32 131 283 42 683 17 142 227 236 13 48 -195 -63 +144 +402 September _ 711 498 3 170 40 751 146 131 177 243 10 45 -40 -41 +719 +800 October 332 41 34 209 48 769 67 136 250 262 9 44 -437 -3 -409 +30 November _ 382 36 129 175 41 678 9 137 228 249 7 49 -296 -6 -122 +180 December 704 481 3 181 40 862 173 136 190 309 4 49 -157 -31 +636 + 824 1939—January 308 48 43 173 45 693 30 140 221 258 5 39 -385 +30 -151 + 204 February. __ 417 56 182 143 37 662 17 122 209 254 10 50 -245 +428 +410 4-227 March. _ _ 737 506 4 183 45 870 120 136 243 297 6 68 -132 +52 +46 + 127 April 268 40 30 156 42 785 66 133 258 266 8 55 -517 +93 -346 +78 May _ _ 397 43 124 187 42 744 10 136 279 262 7 50 -348 +9 -119 +219 June 613 355 25 193 39 951 272 140 223 252 8 56 -339 +95 -86 +158 July 308 42 36 187 43 807 15 155 249 220 1 167 -499 -113 -391 +222 Details of trust accounts, etc. Details of general fund balEmce (end of period) Old-age reserve and Unemployment Net expenditures in All railroad retire- trust fund checking accounts of other, Period ce R i e p m - ts ent m v I a e e n c s n - c t t - s ou m n B t p e s e f a n i n y t t e - s - ce R i e p - ts m v I e e n s n - t t - s d W S ra t b a i w y t t h e a s - ls s C F t R r o i t u e n r G i c p c a o o o t o n n i n v r c o a - e e n - rnm C m C e o C o n t r r o i p e t d o m d o i n a t r i - y t g a- enci o e A t s h l e l r d e ( e c ( o i x + x e - t f p ) c u i ) p r e e r o 1 e t s n e 0 s - s r - s Total a g c I o t n i l - v d e m g c I o o e r n n e l n - d - t i S o e r i a g g n e - W a b i n n o a c g l r e - k- Fiscal year ending: June 1936 19 19 9 241 33 100 +204 2,682 140 316 2,225 June 1937 267 267 (8) 294 293 1 9 329 9 112 127 +60 2,553 1,087 141 356 970 June 1938 550 461 85 763 560 191 99 9 184 9 11 +87 2,216 142 446 1,628 June 1939 639 516 120 838 395 442 9 658 136 9 246 + 116 2, 838 142 536 2,160 1938—July 60 40 9 35 36 9 260 10 9 55 +10 2,116 142 451 1, 523 August 48 35 9 131 82 53 10 31 26 +3 2,260 142 455 1, 663 September. 45 35 9 35 94 40 24 27 9 7 +3 2,978 142 460 2,376 October 44 34 10 38 9 14 40 19 96 +19 2,569 142 467 1,960 November 49 34 10 125 96 26 21 18 9 11 +13 2,447 142 478 1,828 December 49 34 10 37 32 19 18 16 94 +8 3,084 142 492 2,449 1939—January 39 34 10 51 10 33 9 15 10 9 20 +2 2,933 142 503 2,288 February 50 50 10 148 111 36 9326 (8) 9 112 -1 3,343 142 508 2,693 March. _ __ 68 50 11 34 44 9 6 2 9 37 +14 3,389 142 515 2,732 April 55 50 10 34 9 13 41 9 60 5 9 27 + 11 3,044 142 522 2,380 May 50 40 11 137 108 32 3 9 4 12 +23 2,924 142 528 2,254 June. __ 85 83 11 32 » 13 41 9 86 (9) (8) 9 2 + 11 2,838 142 536 2,160 July 65 45 10 58 9 14 42 16 6 144 +13 2,447 142 544 1,761 1 Excludes debt retirements. 2 Includes taxes under Social Security Act and on carriers and their employees. 3 Includes miscellaneous internal revenue, unjust enrichment tax, and processing taxes. * Excludes expenditures for adjusted service which are included under "Transfers to trust accounts, etc." 5 Includes revolving funds of Public Works Administration and Farm Credit Administration. 6 Includes expenditures for retirement funds, adjusted service certificate fund, old-age reserve account and railroad retirement account; except for the adjusted service certificate fund, these appear as receipts under "Trust accounts, etc." 7 Details given in lower section of table. 8 Less than $500,000. 9 Excess of credits. i° Includes other trust accounts, increment resulting from reduction in weight of the gold dollar, expenditures chargeable against increment on gold (other than retirement of national bank notes) and receipts from seigniorage. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

802 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 GOVERNMENTAL CORPORATIONS AND CREDIT AGENCIES, JUNE 30, 1939 [Based on compilation by U. S. Treasury Department from reports received from organizations concerned. In millions of dollars] st R ru ec c o ti n o - n Ho h m ou e si m ng o r a tg g a e g n e c ie a s nd Farm credit agencies Ten- Total Finance nes- Ini A C P W s r t a d u a o r o t m n b a r i r p d o t l i k i i o n n o c s - - n O C H r L a w o o o t r i n m a p o e n o n e r - s' O m a g c g t a o i h e e g r n e s e t - - r U t S H h A n t i o o n a i r u u t t g i e e - s t d s y - m F a g c g a a o i e e r g r m n s e t - - p a C o n b A O F d r a r a t a d e n h r t m d c m k i e o o i s r . t r n - s m C C r C a o r o o t e r i d m p d o i o n i - t t y - Other t V A h l s i e t e o a u y y e l r - - - a a s c g n u ie e c r s n - e - Other J 1 u 3 9 0 n 3 , e 9 M 1 3 9 1 a 3 , y 9 J 1 u 3 9 0 n 3 , e 8 ASSETS Loans and preferred stock: Loans to financial institutions 217 169 60 446 434 494 Preferred stock, etc _ 529 216 44 75 865 863 869 Loans to railroads 463 30 493 501 471 Home and housing mortgage loans 2,081 182 68 2,331 2,325 2,357 Farm mortgage loans 2,658 2,658 2,671 2,804 Other agricultural loans 24 291 372 92 0) 780 776 663 All other loans 2 396 0) »258 * 238 892 941 856 Total loans and preferred stock 1,629 2,297 395 68 2,658 367 372 350 60 269 8,465 8,511 8,514 Cash 1 240 78 60 109 31 2 17 5 27 15 585 538 444 U. S. Govt. direct obligations 48 37 2 76 170 377 4 713 708 651 Obligations of Government credit agencies: Fully guaranteed by U. S. 12 21 106 140 142 158 Other * 8 53 36 48 45 42 Accounts and other receivables 25 10 6 1 201 4 16 0) 4 63 47 377 377 287 Business property. 0) 6 0) 130 6 0) 0) 239 1 98 481 476 430 Property held for sale 35 549 0) 121 0) 2 1 708 713 733 Other assets... 2 3 0) 7 0) 5 0) 4 167 189 191 130 Total assets other than interagency 6 1,749 3,107 529 260 3,181 630 390 372 248 640 600 11, 70611, 70311, 389 LIABILITIES Bonds, notes, and debentures: Guaranteed by United States... 820 2,949 114 1,379 206 3 5,471 5,410 4,853 Other *. . 0) 175 1,001 195 8 0) 8 1,389 1,382 1,346 Other liabilities (including reserves). 88 117 39 3 101 11 74 4 6 185 162 791 790 743 Total liabilities other than interagency • 908 3,066 214 118 2,482 206 280 4 14 188 170 7,651 7,581 6,941 Excess of assets over liabilities, excluding interagency transactions.. 841 40 315 143 699 424 110 368 234 452 430 4,056 4,122 4,447 Privately owned interests 48 196 3 139 387 389 370 U. S. Government interests 841 40 267 143 503 420 110 368 234 313 430 3,668 3,732 4,078 1 Less than $500,000. 2 Includes $55,000,000 loans of Public Works Administration. * Includes $256,000,000 loans of Farm Security Administration. * Includes $122,000,000 loans of Rural Electrification Administration. 8 Excludes Federal land bank bonds held by Federal Farm Mortgage Corporation. * Includes, however, investments in securities of agencies (other than mentioned in footnote 5) and deposits of agencies with Reconstruction Finance Corporation. NOTE.—For explanation of table, see BULLETIN for October 1938, p. 882. RECONSTRUCTION FINANCE CORPORATION LOANS AND INVESTMENTS [Amounts outstanding. In thousands of dollars] July 31, Jan. 31, Feb. 28, Mar. 31, Apr. 30, May 31, June 30, July 31, 1938 1939 1939 1939 1939 1939 1939 1939 Loans to financial institutions _. 232, 279 205, 539 199,183 196, 679 193, 967 190, 447 183,943 i 181, 502 Loans on preferred stock of banks and insurance companies.. 37, 438 34,116 33, 779 33, 626 33, 583 33, 494 33, 444 33, 349 Preferred stock, capital notes, and debentures 531, 694 532, 352 526,153 524, 343 528, 024 528, 573 529, 270 526, 876 Loans to railroads (including receivers) 398, 304 437, 789 436,139 439, 560 443, 840 436, 612 439,199 438, 863 Loans for self-liquidating projects 193, 053 187, 588 187, 301 186, 978 111,391 113, 450 44, 683 68,106 Loans to industrial and commercial businesses 81, 060 109, 419 110, 664 112, 048 112, 531 114, 498 117,079 121, 804 Loans to drainage, levee, and irrigation districts 79, 529 82, 396 82, 494 82, 757 82, 966 83, 084 83,109 83, 358 Other loans 4,287 28, 952 26, 988 27, 067 27,129 28, 640 27, 393 25, 196 Securities purchased from Public Works Administration 138,132 140, 801 136, 725 131, 090 130, 313 128, 865 116, 577 119, 705 Total loans and investments, other than interagency._ 1, 695, 775 1, 758, 9511, 739, 4271, 734,1481, 663, 7441, 657, 6631, 574, 6971, 598, 759 Loans to Federal land banks 4,992 Preferred stock of Export-Import bank 20, 000 45,000 45, 000 45,000 45, 000 45,000 45, 000 45, 000 Loans to Rural Electrification Administration 46, 498 47, 698 49, 848 53, 948 61,148 146, 498 Capital stock of, and loans to R. F. C. Mortgage Co 41,186 56, 548 51, 691 53, 258 55, 066 55, 625 57,094 55, 219 Capital stock of, and loans to Fed. Natl. Mtge. Assn 11, 788 11, 000 17, 234 24, 215 29,.""" 33, 796 37, 996 41, 776 Loans to Tennessee Valley Authority 3,000 3,000 3,000 3,000 3,000 8,300 8,300 Total loans and investments.. 1, 820, 2391, 922,1971, 906, 2001, 913, 5691, 852, £ 1, 856, 2321, 869, 5851, 895, 551 i Includes $52,000,000 of loans for distribution to depositors of closed banks. 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

SEPTEMBER 1939 FEDERAL RESERVE BULLETIN 803 FARM CREDIT ADMINISTRATION LOANS AND DISCOUNTS OUTSTANDING, BY INSTITUTIONS [In thousands of dollars] Federal intermediate Farm mortgage loans credit bank loans to Loans to cooperatives byby- and discounts for— Regional Regional Emeragri- Produc- agricul- gency End of month cultural Other tion credit tural cred- crop and Federal Banks for Agricul- Land credit cor- financing associa- it corpo- drought inter- cooper- tural Federal Bank porations, institu- tions rations loans mediate atives, Marketland banks Commis- production tions, credit including ing Act sioner credit as- except banks Central revolvsociations, coopera- Bank ing fund and banks tives for cooperatives i 1934—December _ _ 1,915, 792 616,825 99,675 55, 672 60,852 87,102 111,182 33,969 27,851 54,863 1935—December 2,071,925 794, 726 104, 706 47,162 94,096 43,400 172,489 2,731 50,013 44,433 1936—December ... 2,064,158 836, 779 129, 872 41,017 105, 212 25, 288 164,887 1,641 69, 647 53, 754 1937—December 2, 035,307 812, 749 165,194 40, 464 138,169 15, 592 172,130 1,813 87, 633 30, 982 1938— July- 2,013, 645 781, 703 199, 288 42, 582 183,891 14,442 183,289 118 75, 264 25,028 August 2,008, 661 776, 982 197, 274 42, 984 181,154 14,003 181,867 118 75, 961 26,119 September _ 2.003. 810 771,988 189,937 40, 808 170,806 13, 374 179, 398 256 82, 544 27, 370 October , 997, 561 766, 502 174, 626 36,121 154, 560 12, 354 174, 574 744 86, 931 27, 917 November ,990,475 760, 326 166, 549 34, 537 148,430 11, 592 172, 043 851 86, 221 25, 313 December , 982, 224 752, 851 168,392 33, 545 148,037 11,081 170,891 920 87, 496 23, 723 1939—January L, 973,179 745, 631 163, 815 33, 077 148,416 10,863 169, 707 834 80, 266 23, 948 February L, 968, 790 740,870 166, 996 34,115 155, 409 10, 689 170,400 1,152 73, 692 23, 631 March _ ,960,357 733,647 175, 362 35, 318 167,867 10,399 175, 509 1,528 65, 783 23, 305 April ,954, 677 728, 489 182, 643 36,483 177, 792 10, 298 179,156 1,256 61, 363 23,190 May _ _ , 947, 944 723,187 186, 588 38,124 183, 351 10,286 179, 834 596 60, 465 23, 061 June .940. 586 717,622 190,359 39, 794 187, 712 10,235 179,565 359 59, 577 22, 592 July 1, 934, 013 712,823 189,044 40, 657 187, 844 10,003 178, 754 263 62,124 22,189 i Some of the loans made by the regional agricultural credit corporations (prior to October 1935) and by 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 three columns under those headings. Such loans are not always discounted in the same month in which the original credit is extended. FEDERAL HOME LOAN BANK BOARD POSTAL SAVINGS SYSTEM LOANS OUTSTANDING, BY INSTITUTIONS [In millions of dollars] [Loans in thousands of dollars] Assets Home mortgage loans by— Federal U. S. Government home Depos- securities Federal savings and loan End of month itors Cash Cash End of month loan associations bank bal- in de- re- Home loans to ances1 Total posi- Di- Guar- serve Owners' member tory rect an- funds, Loan Cor- Number institu- banks Total obli- teed etc.* poration of asso- Loansi tions 2 ga- obliciations tions gations 1934—December. 2, 379,491 81,300 86, 651 1935—December. 2,897,162 1,023 348,000 102, 791 1935—June 1,205 1,236 385 777 630 147 74 1936—December. 2, 765,098 1,212 586, 700 145, 394 1936—June 1,232 1,265 203 967 800 167 95 1937—December. 2,397, 647 1,328 853, 500 200,092 1937—June. __ _ 1,268 1,307 136 1,100 933 167 71 1938—July 2, 248, 982 1,348 961, 300 191, 889 1938—June 1,252 1,290 115 1,103 936 167 72 August 2, 234, 899 1,354 976,074 189,415 July 1,252 1,291 102 1,103 937 166 86 September. 2, 221, 417 1,365 994, 218 189, 548 August 1,252 1,291 99 1,113 947 166 79 October. __ 2, 203, 896 1, 370 1,011,087 189, 217 September 1,248 1,287 98 1,118 952 166 71 November. 2,186,170 1,374 1,020, 873 189, 685 October 1,250 1,289 96 1,118 952 166 75 December. 2,168, 920 1,368 1,034,162 198, 840 November 1,250 1,291 87 1,128 961 167 76 1939—January... 2,149,038 1,370 1,040, 770 178,852 December 1,252 1,291 86 1,132 965 167 73 February.. 2,134, 261 1,375 1,051,109 170, 614 1939—January 1,259 1,299 83 1,137 971 166 79 March 2,117, 598 1,375 1,067,887 161,614 February 1,263 1,304 81 1,144 978 166 79 April 2,105, 824 1,381 1,089,879 157,176 March 1,266 1,309 80 1,153 986 167 76 May 2, 091, 324 1,383 1,117, 228 157, 911 April 1,264 1,306 76 1,154 988 166 76 June 2, 080, 512 1,386 1,136, 289 May 1,261 1,305 73 1,157 1,011 146 75 July 2,067,844 1,385 1,157, 536 161, 537 June PI, 262 July PI, 268 1 Federal Home Loan Bank Board estimates for all Federal savings and loan associations. p Preliminary. 2 Excludes loans to other than member institutions which are negli- 1 Outstanding principal, represented by certificates of deposit. Does gible in amount. not include accrued interest nor outstanding savings stamps. 2 Includes working cash with postmasters, 5-per cent reserve fund and miscellaneous working funds with the Treasurer of the United States, accrued interest on bond investments, and accounts due from late postmasters. Back figures—See, BULLETIN for August 1935, p. 502. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

804 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 PRODUCTION, EMPLOYMENT, AND TRADE [Index numbers; 1923-25 average=100. The terms "adjusted" and "unadjusted" refer to adjustment for seasonal variation] Industrial production i * Construction contracts awarded (value) 2 Fac- Factory em- tory Freight-car Department Year Total Manufac- Minerals Total Residential All other ployment 3 pay- loadings 4 * store sales * and tures rolls 3 (value) month Ad- Unad- Ad- Unad- Ad- Unad- Ad- Unad- Ad- Unad- Ad- Unad- Ad- Unad- Unad- Ad- Unad- Ad- Unadjustedjusted justedjustedjustedjustedjustedjusted justedjustedjustedjustedjustedjusted justed justedjustedjustedjusted 1919 83 84 77 63 44 79 107 98 84 78 1920 87 87 89 63 30 90 107 117 91 94 1921 67 67 70 66 44 65 82 76 78 87 1922 85 86 74' 79 68 88 91 81 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 108 108 108 129 121 135 102 104 107 106 1927 106 106 107 129 117 139 100 102 104 107 1928 111 112 106 135 126 142 100 104 104 108 1929 119 119 115 117 87 142 106 110 107 111 1930 96 95 99 92 50 125 92 89 92 102 1931 81 80 84 63 37 84 78 68 74 92 1932 64 63 71 28 13 40 66 47 55 69 1933 76 75 82 25 11 37 73 50 58 67 1934 79 78 86 32 12 48 86 65 62 75 1935 90 90 91 37 21 60 91 74 64 79 1936 105 105 105 55 37 70 98 86 75 88 1937 110 109 115 59 41 74 106 102 78 92 1938 86 84 98 64 45 80 87 78 62 85 1936 June. __ 104 104 105 105 100 101 52 60 36 39 65 78 97 96 84 73 73 87 84 July.... 108 105 109 105 102 102 59 65 44 45 71 82 98 97 83 76 77 90 63 Aug... 108 106 110 106 99 104 62 65 46 46 75 81 99 100 87 76 77 87 68 Sept 109 108 110 107 102 110 59 60 47 47 69 70 100 102 87 75 84 88 94 Oct 110 111 110 110 105 115 57 54 43 41 69 65 101 103 93 77 86 90 100 Nov 114 115 114 115 112 115 58 51 40 39 72 62 103 103 94 82 84 94 105 Dec 121 114 121 114 117 111 66 53 45 38 83 65 105 104 99 83 77 92 161 1937 Jan 114 112 115 113 111 107 63 51 45 37 77 63 105 103 94 80 73 93 72 Feb 116 117 116 118 116 112 62 54 47 42 75 64 106 105 100 82 76 95 76 Mar 118 122 117 122 128 119 56 66 45 47 64 63 107 108 106 83 80 93 90 April... 118 122 118 125 115 105 53 61 44 51 61 68 108 109 109 84 79 93 89 May __ 118 122 118 123 117 118 56 68 44 52 66 81 109 109 110 80 80 93 95 June 114 115 114 114 115 118 61 72 42 47 77 92 108 108 107 78 79 93 90 July.... 114 111 114 110 112 115 67 75 44 45 86 99 109 108 105 80 82 92 65 Aug 117 115 117 114 113 121 62 66 40 40 81 87 109 109 108 79 81 93 72 Sept 111 109 110 106 116 125 56 56 37 37 71 72 107 109 104 78 87 94 100 Oct 102 102 100 99 113 123 52 49 36 35 65 61 105 107 105 76 84 93 103 Nov 88 90 85 86 109 112 56 50 32 31 76 65 101 101 93 71 72 91 101 Dec 84 80 79 75 115 108 61 49 30 25 87 68 95 95 84 67 62 89 156 1938 Jan. 80 79 76 75 108 103 52 42 26 22 73 69 90 88 75 65 69 90 70 Feb 79 79 75 76 103 99 51 44 32 28 66 56 89 88 77 62 57 88 70 Mar 79 80 75 77 104 96 46 46 33 35 56 55 87 88 77 60 57 86 77 April... 77 78 73 76 100 91 52 59 37 43 65 73 85 86 75 57 55 83 86 May 76 77 73 75 92 90 51 61 37 44 62 76 84 83 73 58 57 78 80 June 77 77 74 75 92 92 54 63 42 46 64 76 82 82 71 58 58 82 79 July.... 83 81 82 79 93 93 59 65 49 49 68 78 83 82 71 61 62 83 58 Aug 88 87 87 85 95 97 66 69 53 52 77 84 85 86 77 62 63 83 65 Sept 90 91 89 89 97 102 78 79 66 56 96 97 87 89 81 64 71 86 91 Oct 96 97 95 95 98 106 82 78 57 56 102 96 88 90 84 68 75 84 92 Nov 103 104 103 103 102 105 96 85 56 54 128 111 90 91 84 69 70 89 99 Dec 104 98 104 98 109 103 96 77 57 48 128 100 92 91 87 69 64 89 156 1939 Jan '•101 »-99 100 '98 110 105 86 70 55 45 111 90 92 90 83 69 63 88 69 Feb 99 99 97 98 110 105 73 63 58 51 85 72 91 91 86 67 62 87 69 Mar..... 98 100 96 100 110 102 69 69 55 58 •80 79 91 91 87 66 63 88 82 April 92 95 92 96 95 88 67 76 58 68 74 83 91 91 85 60 58 88 88 May 92 94 91 94 98 97 63 75 55 65 68 84 90 90 84 62 62 85 87 June P8 98 97 97 104 105 63 73 58 64 67 80 91 91 86 67 67 86 83 July.... P1Q2 P98 P101 P96 P108 P\09 P67 ,73 .61 PQ2 P71 *81 ,92 P91 ,84 69 70 86 60 p Preliminary. r Revised. * Average per working day. 1 For indexes of groups and separate industries see pp. 805-806; 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 p. 358 of BULLETIN for July 1931. 3 The indexes for factory employment and payrolls unadjusted for seasonal variation are compiled by the Bureau of Labor Statistics. For description of the seasonally adjusted index of factory employment compiled by F. R. Board of Governors see pp. 835-837 of BULLETIN for October 1938. For current indexes of groups and separate industries see pp. 807-810. Underlying figures are for payroll period ending nearest middle of month. 4 For indexes of groups see p. 812. Back figures.—See Annual Report for 1937 (table 81). For department store sales see BULLETIN for October 1938, p. 918; for factory employment and payrolls see BULLETIN for October 1938, pp. 838-866. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

805 SEPTEMBER 1939 FEDERAL RESERVE BULLETIN INDUSTRIAL PRODUCTION, BY INDUSTRIES (ADJUSTED INDEXES) [Index numbers of the Board of Governors; adjusted for seasonal variation. 1923-25 average=100] 1938 1939 Industry June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Manufactures—Total _ 82 87 95 103 104 100 97 92 91 97 Durable 58 64 69 83 94 92 '88 83 80 76 71 82 Nondurable 102 108 107 106 110 114 110 109 110 106 108 110 IRON AND STEEL.. 62 70 75 90 108 101 '93 83 79 73 104 Pig iron 42 51 59 67 76 74 72 75 66 55 81 Steel ingots... 64 72 77 92 112 104 '95 84 '75 106 TRANSPORTATION EQUIPMENT: Automobiles2 105 73 87 Locomotives 13 NONFERROXJS METALS: Tin deliveries i 73 76 102 87 Zinc 89 91 Lead 82 CEMENT AND GLASS: Cement 67 80 82 90 79 Glass, plate 107 155 153 147 131 124 COKE: Byproduct- 71 81 89 105 106 106 105 106 94 77 103 110 Beehive 5 5 5 5 2 2 5 5 TEXTILES 97 110 103 100 112 117 109 109 110 97 104 111 Pill C otton consumption . 101 115 108 104 112 120 110 111 114 106 110 115 117 Wool 87 106 91 107 116 107 111 105 85 105 116 Consumption 110 133 107 101 123 134 114 117 119 91 120 138 P134 Machinery activity i 74 91 87 101 112 113 113 91 80 98 105 P107 Carpet and rug loom activity l 42 55 67 69 72 77 87 84 78 73 70 Silk deliveries 101 105 102 104 123 116 107 97 108 76 84 LEATHER AND PRODUCTS 91 103 109 103 101 107 123 124 124 121 115 113 108 P!15 Tanning 75 78 82 78 81 98 103 105 95 97 94 91 Cattle hide leathers 74 77 86 86 89 99 100 104 93 91 91 88 Calf and kip leathers... 76 80 77 72 69 109 119 118 103 101 89 90 Goat and kid leathers.. 74 76 75 65 70 77 85 97 97 95 106 104 100 Boots and shoes 101 119 126 119 114 118 138 137 137 138 127 126 119 P130 FOOD PRODUCTS: Slaughtering and meat packing. 81 83 95 86 87 83 90 94 87 58 62 74 92 79 74 67 73 81 84 73 77 Cattle 108 107 103 106 94 96 89 97 100 106 99 104 103 102 Calves 110 112 115 118 108 112 106 111 108 110 105 108 104 107 Sheep 151 152 153 152 149 152 137 150 157 156 135 142 143 145 Wheat flour.. 98 98 87 91 86 92 92 94 97 100 95 100 96 Sugar meltings... 78 85 86 103 100 108 106 70 78 94 72 66 81 TOBACCO PRODUCTS 154 154 161 160 150 164 1179 165 162 164 164 170 170 158 Cigars 73 71 73 75 74 76 76 79 77 78 77 75 75 73 Cigarettes 219 219 232 229 211 233 258 237 231 236 236 246 247 227 Manufactured tobacco - 84 81 84 78 95 97 78 78 81 85 84 80 PAPER AND PRINTING: Newsprint production ___ 51 54 53 57 58 61 61 61 62 63 65 63 63 Newsprint consumption. 123 125 123 130 132 128 128 125 127 126 130 127 132 126 PETR G O a L s E o U li M ne R 1 EFINING.. 2 1 4 9 8 3 2 2 0 5 0 8 2 2 0 6 3 4 2 2 0 6 6 5 2 2 0 6 8 9 2 2 0 5 1 9 2 2 0 6 5 2 2 2 0 5 1 6 2 2 0 5 2 6 2 2 6 0 5 9 2 2 1 6 1 9 2 2 1 7 5 6 Kerosene 117 106 104 109 102 104 107 112 113 122 122 124 122 F L u u e b l r i o c i a l t i ing oil1 1 1 2 0 6 3 1 11 3 0 2 1 1 3 0 4 8 1 1 4 1 1 3 1 1 1 4 0 3 1 10 4 9 0 1 1 4 0 2 0 1 1 0 4 6 5 1 11 3 7 8 1 11 4 1 0 1 1 4 1 3 5 1 1 1 4 9 3 1 12 4 1 4 RUB T I B n i E n r R e e s r , T t p I u R n b E e e S u s m A i N at D ic T 1 UBES I 7 7 5 0 3 0 8 8 5 1 4 6 9 9 6 0 3 9 95 1 7 0 2 3 1 1 0 7 0 0 5 4 1 11 7 1 6 9 2 1 1 7 1 1 6 0 5 1 1 7 0 1 1 9 4 1 1 7 1 1 6 4 9 1 1 0 0 7 4 8 3 1 1 0 0 2 6 ' 1 1 1 1 2 7 1 1 7 1 1 7 1 6 Minerals—Total. _ 92 95 97 98 109 110 110 Bituminous coal.. 57 64 71 72 76 78 75 79 77 31 46 71 Anthracite 74 47 38 50 49 58 67 69 61 61 80 73 59 Petroleum, crude. 153 161 167 158 161 165 169 171 169 173 174 175 170 Iron ore 34 38 37 41 50 42 55 67 74 Zinc 70 69 74 75 80 87 90 91 89 90 91 Lead 64 54 46 50 50 70 73 71 82 70 68 Silver.. 91 99 105 102 102 100 101 71 107 1 Without seasonal adjustment. v Preliminary. ' Revised. 2 Seasonal adjustment factors for latter half of 1939 revised due to earlier shift to new model production. Tentative adjustment factors: July, 76; August, 31; September, 75; October, 118; November, 118; December, 110. 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, March 1937, p. 255, October 1938, p. 911, and January 1939, pp. 20-21. Series on silk-loom activity and on production of book paper, wrapping paper, fine paper, boxboard, mechanical wood pulp, chemical wood pulp, paper boxes, and lumber, usually published in this table, are in process of revision. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

806 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 INDUSTRIAL PRODUCTION, BY INDUSTRIES (UNADJUSTED INDEXES) [Index numbers of the Board of Governors; without seasonaI adjustment. 1923-25 average=100] 1938 1939 Induscry June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Manufactures—Total 75 79 85 89 95 103 98 '98 98 100 96 94 97 Durable 52 58 63 66 79 92 85 84 83 86 84 78 85 PS5 Nondurable _ - _ __ 94 97 104 109 109 113 108 111 111 111 106 107 108 P106 IRON AND STEEL 46 57 69 75 88 100 89 '90 92 93 '87 79 89 97 Pig iron 36 39 49 57 67 77 73 71 75 79 70 56 72 77 Steel ingots 47 59 71 76 90 103 90 '92 93 '95 '89 81 90 99 TRANSPORTATION EQUIPMENT: Automobiles 52 45 26 26 63 115 117 105 98 105 106 88 91 66 Locomotives 14 12 5 4 5 8 13 11 11 12 12 NONFERROUS METALS: Tin deliveries 73 68 65 71 81 73 59 66 72 76 92 102 93 87 Zinc 68 64 69 71 78 88 96 94 93 96 94 90 87 84 Lead 65 52 44 48 52 69 58 71 75 70 70 80 71 65 CEMENT AND GLASS: Cement _ 86 87 87 86 91 83 64 42 48 65 79 88 98 100 Glass, plate 72 69 89 107 155 155 153 147 133 138 91 93 112 78 COKE: Byproduct . _. _. _ _ ___ _ 68 69 79 88 98 107 107 107 108 109 95 76 101 107 Beehive 4 4 4 5 6 6 7 7 7 6 2 2 5 4 TEXTILES 83 90 103 104 103 116 111 114 115 112 100 104 105 Cotton consumption 85 92 103 104 107 117 110 116 119 119 113 113 111 106 Wool 71 81 101 96 96 113 117 109 116 106 84 100 109 P106 Consumption _ __ 83 98 123 113 111 134 135 118 128 122 88 111 124 P119 Machinery activity 69 74 91 86 87 101 112 113 113 91 80 98 105 P!07 Carpet and rug loom activity- 38 42 55 66 67 69 72 77 87 84 78 73 70 Silk deliveries 90 100 106 116 104 127 103 122 104 104 87 75 75 80 LEATHER AND PRODUCTS 87 102 121 119 111 102 104 115 126 125 112 '105 104 P113 Tanning__ 73 78 84 84 86 88 95 98 108 94 94 88 89 Cattle hide leathers 73 75 85 90 92 93 96 101 111 94 91 87 88 Calf and kip leathers _ __ 74 93 93 83 82 85 94 98 108 91 91 85 88 Goat and kid leathers 74 71 74 68 73 76 92 92 101 97 105 96 100 Boots and shoes 96 117 145 143 128 112 109 125 138 145 124 115 113 P127 FOOD PRODUCTS: Slaughtering and meat packing... 80 79 77 90 94 104 101 101 83 84 81 92 86 84 Hogs 60 56 56 66 79 97 103 100 74 74 72 81 76 69 Cattle 101 106 101 118 110 111 94 98 88 92 87 101 96 101 Calves 114 109 106 113 113 114 100 104 100 111 114 122 108 104 Sheep.. _. ._ ._ 148 152 154 176 163 151 135 151 147 142 127 139 140 145 Wheat flour 86 95 94 104 102 93 88 90 91 91 91 90 88 94 Sugar meltings __ 93 104 97 114 98 78 62 70 69 92 109 81 78 98 TOBACCO PRODUCTS __ __ 169 167 172 177 161 167 145 157 147 156 151 172 186 171 Cigars 80 74 76 86 90 90 57 61 67 71 72 78 81 76 Cigarettes __. 241 241 250 252 222 231 212 232 211 224 215 248 272 249 Manufactured tobacco 86 84 84 91 81 92 79 79 79 81 78 85 86 80 PAPER AND PRINTING: Newsprint production 52 53 52 57 58 63 61 62 61 61 64 66 64 62 Newsprint consumption 122 111 110 128 140 137 132 120 125 131 139 131 131 112 PETROLEUM REFINING _ 192 199 203 206 209 208 202 205 202 201 208 211 215 Gasoline 248 258 264 265 269 269 259 262 256 256 265 269 276 Kerosene 109 98 99 111 107 113 115 115 115 119 121 119 113 Fuel oil _ . 126 132 134 141 143 140 142 145 138 140 143 143 144 Lubricating oil 103 110 108 113 110 109 100 106 117 111 115 119 121 RUBBER TIRES AND TUBES 70 81 90 95 99 100 112 110 109 114 104 102 112 111 Tires, pneumatic 73 84 93 98 103 104 116 115 114 119 108 106 116 Inner tubes ... _ 50 56 69 71 72 75 79 76 71 76 73 68 77 Minerals—Total 92 93 97 102 106 105 103 105 105 102 88 97 105 P109 Bituminous coal. _ _ 51 55 62 76 79 86 82 83 83 77 26 40 63 Anthracite __ _ 64 39 38 51 63 60 66 74 66 50 83 73 51 ^69 Petroleum, crude 156 165 170 163 163 163 164 164 166 171 174 177 173 P179 Iron ore _ _ _ . _ _ 67 78 76 78 86 35 82 132 150 Zinc 68 64 69 71 78 88 96 94 93 96 94 90 87 84 Lead 65 52 44 48 52 69 58 71 75 70 70 80 71 65 Silver 89 84 104 97 101 55 86 86 108 94 102 69 105 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, March 1937, p. 256, October 1938, p. 912, and January 1939, pp. 20-21. Series on silk-loom activity and on production of book paper, wrapping paper, fine paper, boxboard, mechanical wood pulp, chemical wood pulp, paper boxes, and lumber, usually published in this table, are in process of revision. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1939 FEDERAL RESERVE BULLETIN 807 FACTORY EMPLOYMENT, BY INDUSTRIES (ADJUSTED FOR SEASONAL VARIATION) [Index numbers of the Board of Governors; adjusted to Census of Manufactures through 1935. 1923-25 average=100] 1938 1939 Industry and group June July Aug. Sept. Oct. Nov. Dec, Jan. Feb. Mar. Apr. May June July Total 82.4 82.9 84.9 86.9 87.5 90.0 91.6 91.7 91.3 91.0 90.8 90.4 91.4 91.7 Durable goods 71.9 70.7 72.0 75.7 77.9 81.3 83.2 83.6 83.4 83.0 83.2 82.2 83.2 82.6 Nondurable goods 92.4 94.5 97.2 97.6 96.7 98.3 99.5 99.5 98.7 98.0 98.2 99.2 100.3 IRON, STEEL, PRODUCTS 77.8 77.3 79.4 87.7 87.6 87.7 87.6 86.7 87.4 87.6 Blast furnaces, steel works 83 83 84 85 90 92 92 91 91 91 91 93 Bolts, nuts, washers, rivets 77 78 79 83 85 90 92 91 91 92 89 89 Cast-iron pipe 62 60 61 64 65 67 67 66 67 68 67 66 67 C Fo u r t g le in ry g , s edge tools 4 7 0 6 4 6 0 7 4 7 2 6 4 7 4 8 4 7 6 9 8 4 1 8 8 4 3 9 8 4 3 8 8 4 2 8 8 4 3 7 8 4 3 9 48 84 8 5 4 0 Hardware 61 57 62 67 79 84 86 85 83 82 80 76 68 Plumbers' supplies 73 73 73 74 72 73 73 73 73 73 73 74 75 76 Stamped, enameled ware 113 108 118 123 127 134 134 131 131 135 131 130 135 134 Steam, hot-water heating 65 69 70 68 69 68 68 69 69 69 68 69 72 Stoves 70 71 75 74 77 77 78 79 80 79 80 81 84 Structural, ornamental 58 58 58 58 60 63 63 67 68 68 68 67 68 Tin cans, tinware 87 86 90 89 84 87 88 89 90 90 91 90 91 91 Tools 73 70 73 76 77 80 83 83 85 84 84 84 84 80 Wirework 114 112 111 132 145 163 172 163 161 160 156 150 143 134 MACHINERY 86.0 83.3 84.7 85.2 86.! 89.1 91.6 92.1 93.9 94.9 94.9 94.4 95.4 96.0 A gricultural implements 124 103 106 96 99 99 105 109 118 118 116 114 112 110 Cash registers, etc 137 138 135 136 136 135 136 134 134 133 129 128 130 129 Electrical machinery 75 73 74 77 80 83 84 83 84 85 86 85 86 86 T T E M R F e y n o a a x g d p u c t i i e n h i n o w l d i e e s n r , r s y e m i , p t , e t h t a u o m r c o s o r h n a b l i s o c i n n h g e e i r r n a s y e , p - h e s s t h c op products 1 1 8 8 7 5 1 1 3 2 7 4 6 5 1 1 8 8 7 5 1 1 1 2 6 4 7 2 1 1 8 8 7 1 5 1 2 3 7 9 8 2 1 1 8 8 7 6 1 2 3 1 8 1 4 2 1 6 2 2 5 1 1 1 8 7 6 2 0 1 8 9 5 6 6 7 1 1 1 8 8 6 2 1 1 8 2 7 6 9 1 1 1 1 9 8 6 2 2 1 3 2 7 1 6 4 1 1 1 8 9 6 1 2 2 3 2 9 6 7 4 1 1 1 8 9 7 1 2 2 4 2 0 8 7 8 1 1 1 8 9 7 3 1 2 4 2 1 1 3 8 1 1 1 8 9 7 3 2 1 4 3 3 3 5 0 1 1 1 8 9 7 3 1 2 5 6 3 6 1 5 1 1 1 8 9 7 4 2 1 6 5 5 1 2 8 TRANSPORTATION EQUIPMENT 61.1 56.9 55.9 74.2 81.5 93.9 93.3 92.0 90.4 90.3 88.0 80.3 Aircraft 790 787 759 779 810 823 854 885 950 952 1,057 1,149 1,246 1,363 Automobiles 60 55 55 79 89 99 104 102 98 97 96 89 89 78 C L Sh o a i c r p s o , b m u e o l i e l t d c iv i tr n e i g s c-, steam-railroad 2 2 4 5 2 2 3 0 2 9 1 4 1 8 2 9 1 6 1 6 2 9 1 7 7 7 1 3 1 0 0 7 0 1 3 2 0 2 0 3 1 3 1 0 5 8 9 1 3 1 0 3 7 7 1 3 1 0 1 9 9 1 3 2 1 1 2 5 1 3 2 2 1 6 3 1 3 3 2 0 0 5 NONFERROUS METALS, PRODUCTS 81.3 82.0 84.4 89.0 92.3 93.5 93.7 94.0 93.9 93.7 93.2 93.3 94.9 Aluminum 122 124 131 137 140 141 140 141 145 150 153 152 155 164 Brass, bronze, copper 86 87 90 93 95 101 100 99 99 98 97 98 99 99 Clocks, watches 78 78 80 79 81 79 79 84 84 84 85 84 82 85 Jewelry 84 85 87 88 87 90 94 95 96 94 95 98 Lighting equipment 65 66 72 76 83 87 91 89 81 78 80 Silverware, plated ware 58 57 59 59 62 63 64 65 66 66 66 68 Smelting, refining 65 64 64 65 70 72 72 72 72 72 72 71 71 LUMBER, PRODUCTS 59.9 60.2 61.9 62.9 64.5 65.3 65.6 64.6 65.2 65.9 Furniture 73 73 75 76 75 76 79 79 80 81 80 81 82 Lumber, millwork 49 50 52 53 53 55 55 56 55 54 54 53 56 57 Lumber, sawmills 48 49 50 51 51 53 53 54 53 50 51 53 53 53 STONE, CLAY, GLASS PRODUCTS 63.2 63.4 64.0 65.4 67.8 71.1 72.0 73.6 71.5 71.8 72.2 72.3 Brick, tile, terra cotta 45 46 46 48 49 52 53 57 55 54 54 53 54 Cement 63 64 64 63 67 68 67 64 65 66 67 66 66 Glass 78 76 79 82 87 92 93 94 90 89 91 90 92 92 Marble, granite, slate 42 42 40 40 41 42 44 44 42 47 47 46 44 45 Pottery 74 75 75 75 76 78 79 81 79 78 78 81 82 TEXTILES, PRODUCTS 87.4 92.1 96.4 97.0 95.6 96.7 98.4 98.5 97.7 96.4 96.4 98.0 100.7 Fabrics 79.3 83.4 87.2 87.1 86.3 88.6 90.3 90.0 89.8 89.2 88.3 r88. 90.1 92.4 Carpets, rugs 48 63 68 72 76 80 82 83 83 83 83 81 79 79 Cotton goods 78 81 85 85 84 85 85 85 86 85 85 85 86 D H K Co y a n t t e i t s t i H K o , n g n o g n f o u s , i o s r i t m - e d t f f e i r s e n a y d l i l t s l o h w u in t a g e r r e w t s e e x a t r iles 1 1 1 7 6 0 7 0 3 0 4 1 0 6 5 1 1 1 7 8 7 0 0 3 1 2 2 4 9 8 1 1 1 7 8 7 0 1 4 5 5 6 7 1 0 1 1 1 7 8 7 0 4 1 8 7 6 7 0 1 1 1 1 7 9 7 0 1 4 9 0 7 6 1 1 1 1 1 8 8 7 0 4 1 3 4 6 7 1 2 1 1 1 8 8 8 1 1 4 5 3 2 0 5 4 ( 1 1 1 8 8 1 6 1 4 4 4 1 8 3 5 1 1 1 8 8 7 1 4 1 4 4 3 2 6 4 1 1 1 8 8 7 1 1 4 2 1 5 1 5 7 1 1 1 8 8 7 1 4 1 0 0 2 1 6 4 1 1 1 8 7 1 4 7 1 2 3 3 6 9 4 1 1 1 8 8 7 1 1 4 1 3 7 0 5 5 1 1 1 8 8 1 1 4 5 0 8 7 7 Knitted underwear 65 70 70 69 69 70 71 72 72 71 71 73 74 78 Knitted cloth 137 139 150 147 152 157 162 151 151 151 149 144 156 156 Silk, rayon goods 58 57 61 61 60 61 62 61 62 63 62 63 61 60 Woolen, worsted goods ... 62 70 74 73 71 79 83 83 79 76 72 77 81 83 Wearing apparel 104.1 109.8 115.7 117.9 115.4 113.6 116.4 116.0 116.6 115.5 112.8 111.7 114.0 117.8 Clothing, men's 81 91 101 103 102 102 103 101 102 102 100 100 101 104 Clothing, women's 158 163 166 170 164 161 166 165 166 165 158 155 162 168 Corsets, allied garments 98 96 97 97 98 99 101 101 101 101 103 105 108 110 Men's furnishings 126 132 136 142 143 138 140 132 137 132 129 126 130 137 Millinery 65 65 68 71 72 61 66 68 72 72 69 68 63 62 Shirts, collars 115 113 118 116 114 114 116 126 120 118 116 117 117 120 p Revised. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

808 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 FACTORY EMPLOYMENT, BY INDUSTRIES (ADJUSTED FOR SEASONAL VARIATION) —Continued [Index numbers of the Board of Governors; adjusted to Census of Manufactures through 1935. 1923-25 average=100] 1938 1939 Industry and group June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July LEATHER, MANUFACTURES 84.4 88.4 89.6 91.3 90.8 91.4 92.1 92.8 92.9 93.2 91.7 88.1 90.9 92.3 Boots, shoes 85 90 91 92 91 92 92 93 93 93 92 88 91 92 Leather 73 75 78 79 81 84 84 86 85 85 84 82 84 85 FOOD, PRODUCTS.. _ _ 121.2 122.2 123.0 122.2 119.2 122.8 124.2 124.2 121.3 122.5 122.3 123.7 124.6 123.4 Baking 143 144 144 143 142 143 144 143 144 144 143 145 146 146 Beverages 232 232 236 234 234 245 244 245 244 240 241 242 244 239 Butter 102 101 103 100 99 99 100 100 98 98 99 99 99 99 Canning, preserving 131 136 140 131 111 128 129 129 122 136 134 137 139 128 C onf ectionery 78 78 79 79 79 79 82 80 79 79 77 78 77 78 Flour _ 77 77 77 75 75 77 78 78 76 78 76 79 80 80 Ice cream 77 77 78 77 78 80 80 80 80 79 80 79 79 77 Slaughtering, meat packing 94 95 95 96 97 99 99 96 95 94 95 97 98 99 Sugar, beet __ 91 92 89 109 101 101 142 199 112 101 97 101 98 92 Sugar refining, cane 89 85 88 92 89 88 87 89 86 89 94 81 83 87 TOBACCO MANUFACTURES 65.2 61.9 62.9 64.3 63.2 63.7 64.2 64.5 63.5 60.3 63.2 63.7 64.2 64.4 Tobacco, snuff 62 61 61 63 58 61 62 59 59 60 61 60 60 59 Cigars, cigarettes... 66 62 63 65 64 64 65 65 64 60 63 64 65 65 PAPER, PRINTING 103.0 103.0 103.7 104.0 104.3 105.4 106.0 106.0 105.9 106.3 106.3 106.3 105.9 107. 1 Boxes, paper 95 95 96 96 97 100 101 102 102 103 102 102 102 103 Paper, pulp. _ 102 102 103 104 105 106 106 106 106 106 106 107 106 106 Book, job printing 99 100 99 99 99 100 101 101 100 101 101 100 100 102 Newspaper, periodical printing. __ 105 104 105 105 105 106 106 105 106 106 106 106 106 107 CHEMICALS, PETROLEUM 108.4 108.4 111.0 111.4 111.2 111.8 112.3 112.4 111.7 112.0 112.7 112.9 112.2 112.4 Petroleum refining 120 121 121 120 119 118 118 118 118 117 117 118 119 120 Other than petroleum 105.5 105.2 108.4 109.4 109.3 110.2 110.9 111.1 110.3 110.7 111.7 111.8 110.5 110.4 Chemicals 110 106 110 111 113 117 117 117 118 118 116 115 115 113 Cottonseed oil, cake, meal 93 102 98 87 86 88 90 85 76 83 90 95 76 72 Druggists' preparations 112 113 110 108 107 107 107 108 106 106 108 110 111 110 Explosives 81 81 81 83 82 81 81 82 82 83 82 84 86 88 Fertilizers.. 93 91 96 92 88 91 89 94 89 89 '98 102 95 93 Paints, varnishes . .. 109 110 113 114 113 114 114 115 114 115 116 114 115 117 Rayon, allied products 274 272 292 312 313 310 310 310 314 312 322 315 313 315 Soap _ 86 89 92 91 90 86 91 91 90 89 88 89 90 94 RUBBER PRODUCTS .. — 71.3 69.5 73.4 76.0 76.8 81.7 83.2 81.3 81.3 82.3 '81.5 81.2 81.1 79.8 Rubber boots, shoes 56 44 54 56 58 62 63 58 61 62 63 61 48 Rubber tires, inner tubes 60 61 61 62 64 66 67 67 66 67 67 67 67 67 Rubber goods, other 107 109 117 123 121 132 135 131 131 132 129 127 129 132 r Revised. NOTE.—Figures for July 1939 are preliminary. For description and back data see pages 835-866 of the BULLETIN for October 1938. Underlying figures are for payroll period ending nearest middle of month. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1939 FEDERAL RESERVE BULLETIN 809 FACTORY EMPLOYMENT AND PAYROLLS, BY INDUSTRIES (WITHOUT SEASONAL ADJUSTMENT) [Index numbers of the Bureau of Labor Statistics;adjusted to Census of Manufactures through1935. 1923-25 average=100] Factory employment Factory payrolls Industry and group 1938 1939 1938 1939 June July Mar. Apr. May June July June July Mar Apr. May June July Total 81.6 81.9 91.4 '91.1 90.1 90.6 90.5 70.8 70.6 86.9 84.9 84.4 85.9 83.8 Durable goods 72.4 70.3 83.5 84.1 83.3 83.q 82.1 61.7 58.6 80.1 80.2 79.5 81.4 76.4 Nondurable goods 90.3 92.9 98.9 '97.8 96.7 97.0 98.5 80.9 84.1 94.6 '90. 2 89.9 91.0 92.1 IRON, STEEL, PRODUCTS 77.8 76.6 88.3 88.3 87.3 87.5 86.8 59.1 57.4 81.6 80.1 '78.4 80.7 77.2 Blast furnaces, steel works 82 82 92 92 91 92 92 58 57 85 83 80 83 80 Bolts, nuts, washers, rivets 77 77 92 90 89 88 88 61 59 92 82 82 82 75 Cast-iron pipe 64 62 67 67 68 68 69 51 52 55 59 64 62 61 Cutlery, edge tools 75 64 84 85 80 83 79 62 52 77 74 72 78 68 Forgings . 40 39 48 49 48 48 48 29 29 46 47 47 46 45 Hardware _ 61 57 83 81 76 69 67 52 48 82 77 75 71 70 Plumbers' supplies 73 73 74 73 74 75 76 58 55 63 65 67 68 65 Stamped, enameled ware 113 105 137 135 133 135 131 100 92 137 132 128 131 123 Steam, hot-water heating 65 67 69 69 69 69 70 51 52 56 56 57 59 56 Stoves 71 68 78 81 82 83 81 55 52 67 '69 '69 70 66 Structural, ornamental 58 59 66 67 67 68 69 47 49 58 60 59 61 61 Tin cans, tinware 89 91 86 88 89 93 96 93 94 93 94 97 102 105 Tools .. 73 70 85 85 84 84 80 61 58 84 82 81 81 75 Wirework 116 110 161 159 155 144 132 100 92 170 163 153 152 135 MACHINERy 86.1 82.9 94.7 95.1 94.9 95.6 95.6 76.4 72.7 94.? 93.7 94.9 96.4 94.6 Agricultural implements _ 125 101 125 124 118 114 108 124 99 137 135 126 119 115 Cash registers, etc 137 138 133 130 130 130 129 121 123 120 120 121 124 122 Electrical machinery ._ 75 73 85 86 86 86 86 67 64 87 86 87 88 87 Engines, turbines, etc. 86 82 94 96 98 100 97 89 86 112 115 117 118 112 Foundry, machine-shop products. 77 76 84 85 85 85 85 66 64 80 79 80 82 80 Machine tools _ 116 111 128 131 134 137 140 99 94 135 141 149 153 154 Radios, phonographs 82 82 99 95 96 109 117 72 72 85 81 84 95 102 Textile machinery . . 54 54 70 72 73 73 75 47 45 69 71 72 76 77 Typewriters 115 116 128 128 126 124 120 94 92 136 134 129 114 115 TRANSPORTATION EQUIPMENT 62.4 55.5 95.7 95.2 90.3 89.9 78.4 57.4 51.0 92.0 94.4 87.6 89.2 75.0 Aircraft. 814 795 962 1,078 1,184 1,283 1,377 764 737 989 1,064 1,165 1,311 1,328 Automobiles 62 53 104 102 93 92 76 54 47 97 100 88 89 71 Cars, electric-, steam-railroad 25 23 33 33 34 32 30 24 20 32 32 34 32 26 Locomotives 25 20 17 19 22 27 30 20 16 14 16 20 24 26 Shipbuilding. _ 98 96 109 112 118 122 121 105 100 116 117 128 132 129 NONFERROUS METALS, PRODUCTS 79.8 79.1 94.3 93.5 92.4 91.6 91.6 66.3 67.0 89.2 86.0 86.8 86.7 84.9 Aluminum 122 122 153 155 152 155 160 109 112 160 161 157 161 152 Brass, bronze, copper 86 86 99 98 99 99 98 73 78 99 96 99 99 99 Clocks, watches 75 74 84 84 82 80 80 60 60 86 84 82 80 83 Jewelry _. 78 79 93 90 86 88 91 60 61 77 71 69 73 73 Lighting equipment 64 63 88 84 81 76 75 51 50 77 69 71 67 64 Silverware, plated ware 58 51 67 66 66 66 60 45 38 65 59 60 59 52 Smelting, refining 65 64 72 72 71 71 71 60 57 67 66 67 66 65 LUMBER, PRODUCTS 60.7 60.7 62.6 64.3 65.3 66.8 67.3 51.2 48.7 53.9 55.7 58.2 60.4 56.7 Furniture 71 71 79 78 77 79 80 52 51 66 64 63 65 65 Lumber, millwork 50 51 53 54 54 57 57 40 42 44 44 45 49 46 Lumber, sawmills 50 50 49 52 54 54 55 45 42 42 46 50 52 47 STONE, CLAy, GLASS PRODUCTS 65.8 64.6 69.6 72.7 72.5 74.5 73.6 56.4 53.1 61.7 '64.1 66.9 62.5 Brick, tile, terra cotta _ 48 49 50 54 54 57 57 36 35 37 40 40 46 43 Cement 68 70 60 67 67 71 72 65 66 56 62 64 70 69 Glass 79 75 91 92 92 93 90 78 69 95 89 92 96 87 Marble, granite, slate. _ _ 44 44 45 47 48 46 48 34 34 34 39 40 37 37 Pottery 73 70 81 82 81 80 76 61 53 74 '75 '73 69 62 TEXTILES, PRODUCTS _ __ 84.6 86.6 101.4 98.6 96.1 94.9 94.9 62.4 66.6 89.0 79.8 77.8 77.6 77.5 Fabrics 77.2 80.4 91.2 88.8 '88.3 87.8 89.0 61.2 65.7 79.4 73.9 '74.2 74.6 75.6 Carpets, rugs __ __ . 48 63 85 84 81 79 79 36 45 75 71 65 64 65 Cotton goods 76 78 88 87 85 84 85 59 64 76 73 72 71 72 Cotton small wares 68 68 86 84 82 79 82 60 59 83 76 75 73 76 Dyeing, finishing textiles .__ 98 97 116 114 113 106 109 77 78 101 97 94 89 89 Hats, fur-felt 61 80 83 81 77 80 83 49 75 71 56 64 75 82 Knit goods 104 105 116 115 114 113 113 100 98 119 112 109 110 108 Hosiery.. _ __ 133 133 149 147 145 142 142 139 134 165 154 147 144 141 Knitted outerwear 69 69 76 72 73 76 77 58 57 . 68 64 67 69 69 Knitted underwear. 66 67 72 74 74 75 74 53 54 65 65 66 68 66 Knitted cloth 135 137 153 150 144 153 154 100 111 121 112 111 124 129 Silk, rayon goods 54 55 64 62 59 56 58 41 42 53 49 47 46 46 Woolen, worsted goods _ 61 68 77 69 75 80 81 47 56 62 52 61 67 68 Wearing apparel 99.7 98.9 123.0 119.0 112.2 109.3 106.6 62.6 66.0 104 8 88.8 '82.1 80.9 78.7 Clothing, men's _ 78 90 107 104 97 98 103 43 57 86 74 67 72 76 Clothing, women's 148 135 179 171 160 139 90 86 143 118 110 103 94 Corsets, allied garments 97 93 104 106 107 107 107 86 83 109 111 '112 109 109 Men's furnishings 124 121 137 132 127 m 126 101 94 122 110 105 113 111 Millinery 60 50 83 78 70 58 48 45 36 90 64 53 41 33 Shirts, collars . 113 108 122 119 118 116 115 83 78 107 103 102 101 94 • Revised. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

810 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 FACTORY EMPLOYMENT AND PAYROLLS, BY INDUSTRIES (WITHOUT SEASONAL ADJUSTMENT) —Continued [Index numbers of the Bureau of Labor Statistics; adjusted to Census of Manufactures through 1935. 1923-25 average=100] Factory employment Factory payrolls Industry and group 1938 1939 1938 1939 June July Mar. Apr. May June July June July Mar. Apr. May June July LEATHER, MANUFACTURES 81.8 89.3 97.6 94.0 87.0 88.1 93.2 57.5 69.4 83.2 74.5 64.2 69.3 76.8 Boots, shoes 83 91 99 95 86 87 94 53 67 80 70 58 63 73 Leather 72 74 86 85 82 84 84 69 72 88 84 81 85 84 FOOD, PRODUCTS 119.4 128.6 112.0 114.0 116.8 122.8 129.5 121.7 128.5 113.8 113.9 120.9 125.6 130.0 Baking 144 145 142 142 145 147 147 142 143 138 136 143 145 146 Beverages 252 260 228 236 246 265 268 306 323 263 282 301 331 334 Butter 110 111 92 96 101 107 108 95 96 79 82 87 93 95 Canning, preserving 114 179 79 93 93 121 168 101 157 74 81 86 102 141 Confectionery 70 68 78 72 71 69 67 68 63 75 67 70 68 63 Flour 75 78 77 75 77 78 82 76 79 74 73 75 77 84 Ice cream 92 95 70 76 87 94 95 78 81 61 66 75 80 82 Slaughtering, meat packing 94 95 93 92 95 98 99 105 108 101 100 108 110 112 Sugar, beet 47 53 39 44 48 51 54 52 53 44 46 52 55 49 Sugar refining, cane 91 88 88 94 81 84 91 81 81 86 85 70 75 78 TOBACCO, MANUFACTURES 64.8 61.5 59.5 61.8 62.8 63.8 64.0 59.4 57.1 51.5 53.1 55.8 58.9 59.8 Tobacco, snuff 61 60 61 61 60 59 58 70 69 67 64 66 66 68 Cigars, cigarettes 65 62 59 62 63 64 65 58 56 50 52 55 58 59 PAPER, PRINTING 101.9 101. 5 105. 9 105.9 106.0 104.7 105.5 96.0 95.9 104.2 103.3 103.9 102.2 101.0 Boxes, paper 92 92 102 100 100 100 101 91 93 107 104 104 106 104 Paper, pulp 102 102 106 106 107 106 106 95 97 106 105 106 104 101 Book, job printing 97 98 100 100 100 98 100 84 85 92 90 91 89 91 Newspaper, periodical printing 105 102 106 107 107 106 105 104 101 108 109 109 107 104 CHEMICALS, PETROLEUM 105.2 105.0 114.5 ••114.8 rill. 5 109.2 109.6 112.8 111.1 121.7 -120. 4 '120.4 119.8 118.6 Petroleum refining 121 122 116 116 117 119 121 138 135 132 129 132 134 131 Other than petroleum 101.4 101.0 114.0 r114.4 rllO.1 106.7 106.8 105.1 103.7 118.7 r117. 9 '116.8 115.3 114.8 Chemicals 110 108 117 115 115 115 115 118 115 131 128 129 129 128 Cottonseed oil, cake, meal 58 59 88 74 65 47 42 48 51 74 60 52 41 38 Druggists' preparations 108 107 108 108 107 107 105 114 111 119 119 119 119 118 Explosives 80 81 81 81 82 86 87 86 89 92 90 91 96 98 Fertilizers 69 64 133 ••158 '•no 70 65 65 63 107 r135 '105 65 63 Paints, varnishes 113 111 115 118 118 119 117 116 111 120 123 127 126 121 Rayon, allied products 265 271 317 315 309 304 314 242 250 313 304 298 302 311 Soap 85 88 91 88 88 89 92 86 87 93 91 90 94 95 RUBBER PRODUCTS 70.6 68.7 82.8 r82.2 '81.4 80.2 78.7 63.5 64.1 85.4 r83.1 82.1 84.2 82.8 Rubber boots, shoes 54 42 62 60 '61 58 47 45 37 59 59 57 58 44 Rubber tires, inner tubes 60 61 67 67 67 67 67 58 60 76 74 74 77 78 Rubber goods, other 106 107 134 132 129 128 129 93 95 130 127 124 124 124 r Revised. NOTE.—Figures for July 1939 are preliminary. For description see pages 835-866 of the BULLETIN for October 1938. Back data may be obtained from the Bureau of Labor Statistics. Underlying figures are for payroll period ending nearest middle of month. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

811 SEPTEMBER 1939 FEDERAL RESERVE 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.] Nonresidential building Total Re b s u i i d ld en in t g ial P a u n b d l ic p u w b o li r c ks Month Factories Commercial Educational1 Other i utilities i 1938 1939 1938 1939 1938 1939 1938 1939 1938 1939 1938 1939 1938 1939 January 192.2 251.7 36.2 80.2 6.6 7.1 15.4 17.3 19.0 31.7 16.4 28.9 98.6 86.5 February 118.9 220.2 40.0 79.0 4.9 9.5 13.0 13.5 15.4 21.8 15.1 24.7 30.5 71.6 March 226.9 300.7 79.4 125.2 15.7 13.0 20.2 17.4 21.0 27.6 31.0 39.8 59.7 77.7 April 222.0 330.0 74.6 114.4 11.5 17.5 18.9 21.3 16.9 21.1 33.1 34.8 67.0 121.0 May 283.2 308.5 83.2 133.8 8.6 13.0 19.2 19.5 11.8 16.4 38.2 27.8 122.2 97.9 June 251.0 288. 3 85.7 111.9 10.7 15.8 18.8 26.8 14.7 12.5 37.7 37.8 83.5 83.6 July 239.8 88.0 9.7 26.2 10.7 26.1 79.3 August 313 1 99 7 11 3 18.3 21 4 36 3 126 1 September 300.9 99.6 10.7 14.0 33.9 33.4 109 3 October 357 7 112 7 13 8 24.2 47 0 46 0 114 0 November 301.7 95.3 10. 5 13.7 49.0 42.8 90.4 December 389.4 91.5 7.0 14.0 73.3 45.2 158.4 Year 3,196. 9 985.8 121.1 215.8 334.1 401.2 1,139.0 1 Not strictly comparable with data for earlier years due to changes in classification. NOTE.—Due to change in publication policy of the F . W. Dodge Corporation, data for July 1939 will be published in the BULLETIN for October 1939. 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 i Privately-financed 1 Month 1934 1935 1936 1937 1938 1939 1934 1935 1936 1937 1938 1939 1934 1935 1936 1937 1938 1939 January 186 100 215 243 192 252 157 55 149 112 118 148 29 45 66 130 75 104 February 97 75 140 188 119 220 65 38 79 69 51 111 31 37 62 119 68 109 March 178 123 199 231 227 301 126 68 96 66 95 128 52 55 103 165 132 173 April 131 124 235 270 222 330 78 53 105 74 99 160 53 71 130 195 123 170 May 134 127 216 244 283 308 72 47 94 93 144 135 63 80 122 151 139 174 June __ 127 148 233 318 251 288 73 64 116 137 108 128 54 84 116 180 143 161 July 120 159 295 322 240 300 52 67 153 131 98 137 67 93 141 191 142 163 August 120 169 275 281 313 69 92 153 104 171 51 76 122 178 142 September 110 167 234 207 301 69 97 116 80 160 41 70 119 127 141 October 135 201 226 202 358 79 114 101 78 203 57 87 125 124 154 November 112 188 208 198 302 74 118 89 93 179 38 70 119 106 123 December 93 264 200 209 389 61 196 82 115 279 32 68 117 94 110 Year 1,543 1,845 2,675 2,913 3,197 975 1,007 1,334 1,152 1,705 568 837 1,341 1,761 1,492 Back figures —See BULLETIN for February 1938, p. 159. 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 1939 1938 Federal Reserve district Federal Reserve 1939 1938 1939 1938 July June July district July June July July June July Boston 19, 729 19, 664 16, 373 New York 52, 323 44, 985 62, 377 Philadelphia 15, 951 14, 797 11, 250 Boston 71 63 98 1,134 958 1,200 Cleveland 37, 799 40, 510 20, 894 New York 259 260 288 4,267 3,136 5,138 Richmond 35,117 46,154 21, 560 Philadelphia 72 71 64 1,439 366 738 Atlanta 24, 361 26, 728 19, 770 Cleveland. _ 70 63 67 905 946 1,876 Chicago 54, 900 47, 587 40, 554 Richmond 35 36 56 486 714 440 St. Louis 20, 961 17,171 14, 214 Atlanta 48 38 68 608 482 1, 120 Minneapolis 13, 054 8,692 8,278 Chicago _ 153 190 173 2,670 2,115 2,012 Kansas City 10, 991 8,432 9,434 St. Louis ._ 39 28 42 463 471 681 Dallas 14, 697 13, 596 15, 095 Minneapolis 13 20 12 89 277 160 Kansas City 41 57 38 419 354 304 Total (11 districts) 299, 883 288, 316 239, 799 Dallas 24 30 14 223 265 129 San Francisco 92 96 118 1,447 1,525 963 Total 917 952 1,038 14,150 11, 609 14, 761 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

812 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 MERCHANDISE EXPORTS AND IMPORTS [In millions of dollars] Merchandise exports 1 Merchandise imports 2 Excess of exports Month 1935 1936 1937 1938 1939 1935 1936 1937 1938 1939 1935 January. _ 176 199 223 289 213 167 187 240 171 178 9 February 163 182 233 262 219 152 193 278 163 158 11 March 185 195 275 268 177 199 307 173 190 8 April 164 193 274 231 171 203 287 160 186 -6 May 165 201 257 249 171 192 285 148 203 -5 June 170 186 265 233 236 157 191 286 146 179 July._._ 173 180 268 228 177 195 265 141 August 172 179 211 231 169 193 246 166 September 199 221 297 246 162 216 233 168 October 221 265 333 278 189 213 224 178 November 270 226 315 252 169 196 223 176 December 223 230 323 269 187 245 209 171 Year 2,283 2,456 3,349 3,094 2,047 2,423 3,084 1,960 CO COCO 1936 1937 1938 1939 11 -18 118 35 — 11 —45 99 61 -4 -51 102 77 -10 -18 115 45 9 5 109 47 -5 -21 87 57 -15 3 87 — 14 31 65 37 5 63 79 32 52 108 100 100 30 92 76 37 -15 115 98 235 33 265 1,134 p Preliminary. i Including both domestic and foreign merchandise. i 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, for July 1933, p. 431, and for February 1937, p. 152. FREIGHT-CAR LOADINGS, BY CLASSES DEPARTMENT STORES—SALES, STOCKS [Index numbers; 1923-25 average=100] [Index numbers based on value figures; 1923-25 average—100] 1938 1939 Sales i Stocks (end of month) July Mar. Apr. May June July Adjusted Without Adjusted Without Month for seasonal seasonal for seasonal seasonal variation adjustment variation adjustment Adjusted for seasonal variation 1938 1939 1938 1939 1939 1938 1939 Total 61 66 60 62 67 Coal 62 62 43 51 68 Coke 43 55 56 42 51 January... Grain and grain products._. 89 73 76 81 90 February. 87 65 Livestock 39 40 40 40 36 March 82 68 Forest products 37 36 38 40 40 Ore 32 86 75 58 64 April. 69 Miscellaneous 65 73 70 70 71 May.. 85 68 Merchandise l 60 62 61 61 61 June.. 64 July 60 67 Without seasonal adjustment August September.. 86 70 Total 62 63 58 62 67 70 October Coal 52 66 36 44 58 64 November. Coke 36 57 47 40 47 52 December.. Grain and grain products... 123 67 68 73 89 111 Livestock 34 32 37 36 30 34 Year.. 85 Forest products 37 36 39 41 42 43 Ore 60 21 31 81 108 112 Miscellaneous 66 70 72 73 74 74 r Revised. Merchandise i 59 62 62 61 61 61 1 Based on daily average sales—with allowance for changes from month to month in number of Saturdays and in number of Sundays and holidays. Adjustment for seasonal variation makes allowance in March iln less-than-carload lots. and April for the effects upon sales of changes in the date of Easter. NOTE.—For description and back data see pp. 522-529 of BULLETIN Back figures.—Department store sales, see BULLETINS for August for June 1937. Based on daily average loadings. Basic data compiled 1936, p. 631, and October 1938, p. 918; department store stocks, see BULby Association of American Railroads. Total index compiled by com- LETIN for March 1938, p. 232. bining 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

SEPTEMBER 1939 FEDERAL RESERVE BULLETIN 813 WHOLESALE PRICES, BY GROUPS OF COMMODITIES [Index numbers of the Bureau of Labor Statistics. 1926=100] Other commodities All Farm Year, month, or week m c t o o ie m d s i - - p u r c o t d s - Foods Total H p l i r e d o a e d t s h u e a c r n ts d p T ro e d x u ti c le ts F m li u a g e t h l e t r a i i n n a g d ls a p n M r d o e d m t u a e c l t s t a s l B m u a i t l e d r i i n a g ls c C a d l h r s e u m g a s n i d - i f n H u g r o n g u i o s s e o h - - ds l M an is e c o e u l s - 1929 95.3 104.9 99.9 91.6 109.1 90.4 83.0 100.5 95.4 94.2 94.3 82.6 1930 _. 86.4 88.3 90.5 85.2 100.0 80.3 78.5 92.1 89.9 89.1 92.7 77.7 1931 73.0 64.8 74.6 75.0 86.1 66.3 67 5 84 5 79.2 79.3 84 9 69.8 1932 64.8 48.2 61.0 70.2 72.9 54.9 70.3 80.2 71.4 73.5 75.1 64.4 1933 65.9 51.4 60.5 71.2 80.9 64.8 66.3 79.8 77.0 72.6 75.8 62.5 1934 74.9 65.3 70.5 78.4 86.6 72.9 73.3 86.9 86.2 75.9 81.5 69.7 1935 80.0 78.8 83.7 77.9 89.6 70.9 73.5 86.4 85.3 80.5 80.6 68.3 1936 80.8 80.9 82.1 79.6 95.4 71.5 76 2 87.0 86.7 80.4 81.7 70.5 1937 . _- __ 86.3 86.4 85.5 85.3 104.6 76.3 77.6 95.7 95.2 83.9 89.7 77.8 1938 78 6 68.5 73.6 81.7 92 8 66.7 76 5 95 7 90 3 77.6 86.8 73.3 1938—June 78.3 68.7 73.1 81.3 90.1 65.5 76.4 96.1 89.7 76.3 87.1 72.9 July 78.8 69.4 74.3 81.4 91.5 66.1 76.8 95.2 89.2 77.7 86.4 72.7 August 78.1 67.3 73.0 81.4 91.9 65.9 76.8 95.4 89.4 77.7 86.4 72.4 September 78.3 68.1 74.5 81.3 92.0 65.8 76.6 95.5 89.5 77.3 86.2 72.4 October 77.6 66.8 73.5 81.1 93.4 66.2 75.4 95.3 89.8 77.1 85.7 72.6 November 77.5 67.8 74.1 80.6 94.6 66.2 73.7 94.9 89.2 76.6 85.8 73.0 December 77.0 37.6 73.1 80.3 93.1 65.8 73.2 94.6 89.4 76.7 86.0 73.1 1939—January 76.9 67.2 71.5 80.2 93.1 65.9 72.8 94.4 89.5 76.7 85.4 73.2 February.. ._ __ __ 76.9 67.2 71.5 80.2 91.9 66.1 73.0 94.3 89.6 76.3 85.2 73.5 March 76.7 65.8 70.2 80.4 91.8 66.6 73.1 94.3 89.8 76.5 85.2 74.1 April __ __ 76.2 63.7 68.6 80.5 90.9 66.9 73.4 94.0 89.6 76.0 85.4 74.4 May 76 2 63.7 68 2 80 6 91 6 67 5 73 9 93 5 89.5 75.9 85.5 74.2 June 75.6 62.4 67.6 80.2 92.3 67.3 73.0 93.2 89.5 75.7 85.6 73.8 July 75.4 62.6 67.5 80.2 92.5 67.6 72.8 93.2 89.7 75.0 85.6 73.4 Week ending— 1939—May 6 76.1 63.6 68.3 80.9 91.8 66.8 74.6 94.0 89.6 75.7 86.8 74.3 Mav 13 76.4 64.4 68.5 81.0 92.1 67.0 74.8 93.7 89.6 75.7 86.8 74.3 May 20 75 9 64 1 67 4 80 7 92 2 67 0 74 4 93 5 89.3 75.7 86.9 73.7 May 27 75.8 63.5 67.6 80.7 92.6 67.1 74.1 93.5 89.4 75.7 86.9 73.7 June 3 75.7 63.1 67.5 80.6 92.6 66.9 74.1 93.5 89.2 75.8 86.9 73.8 June 10 __ 75.6 62.7 67.3 80.6 92.8 66.9 73.9 93.5 89.8 75.6 86.9 73.6 June 17 75.4 62.0 67.1 80.6 93.0 66.8 74.1 93.4 89.5 75.5 86.9 73.6 June 24 75 5 62 7 67.4 80.6 93.0 66.7 74.1 93.5 89.3 75.0 86.9 73.7 July 1 75 5 62.9 67.4 80.5 93.1 66.9 73.7 93.3 89.7 74.9 87.0 73.6 July 8 75.6 64.1 68.1 80.3 92.8 67.0 73.2 93.3 89.5 74.7 87.0 73.3 July 15 75. 5 63.3 67.6 80.4 92.8 67.1 73.4 93.3 89.8 74.7 87.0 73.3 July 22 75 2 62 2 67. 5 80.4 93.2 67.4 73.3 93.3 89.5 74.6 87.0 73.3 July 29 74 8 61 4 66.7 80.4 93.7 67.5 73.3 93.4 89.4 74.6 87.0 72.9 August 5 75 1 62.5 67.2 80.5 93.7 67.4 73.4 93.4 90.1 74 5 87.0 73.0 August 12 74.8 61.4 66.7 80.5 93.5 67.2 73.5 93.5 90.1 74.3 87.0 73.0 August 19 74.6 60.4 66.2 80.4 92.8 67.4 73.6 93.5 89.5 74.2 87.0 73.0 1938 1939 1938 1939 Subgroups Subgroups July Apr. May June July July Apr. May June July FARM PRODUCTS: METALS AND METAL PRODUCTS: Grains 58.3 55.2 59.6 58.2 52.3 Agricultural implements. __. _ P5 9 93.3 93.4 93.4 93.4 Livestock and poultry 84 4 75 5 73.2 69.4 69.7 Farm machinery 97 3 94.6 94.6 94.6 94.7 Other farm products 63.0 58.5 58.7 58.8 60.7 Iron and steel 97.2 96.1 95.7 95.2 95.1 FOODS: Motor vehicle3 1 Q6 0 93.4 93.0 93.0 93.0 Dairy products 69 5 58.1 58.6 60.0 64.6 Nonferrous metals 71 8 74.7 73 1 72.9 73.3 Cereal products _ 78.8 72.2 73.8 75.9 71.9 Plumbing anc heating 79.5 79.3 79.3 79.3 79.3 Fruits and vegetables 56.4 64.3 63.8 62 5 62.0 BUILDING MATERIALS: Meats 89 7 81 0 78.6 75.7 75.3 Brick and tile 90 7 93.0 91 7 91.1 90.6 Other foods 66 7 61 6 61 4 60 8 60 4 Cement 91 0 91 5 91 5 91 5 91.5 HIDES AND LEATHER PRODUCTS: Lurnber . _. 88. 8 91.5 91.2 90.7 91.8 Shoes 101.2 101.2 101.3 01.3 1O0.8 Pahit and Daint materials 30 5 81.3 81.6 82.4 82.2 Hides and skins 70.8 68.3 72.1 75.3 76.9 Plumbing and heating 79.5 79.3 79.3 79.3 79.3 Leather 82. 5 82.8 83. 1 83.8 84.1 Structural stef1 107. 3 107.3 107 3 107.3 107.3 Other leather products 97.5 95.6 95.6 95.6 95.6 Other building materials 91.2 89.7 89.6 89.5 89.6 TEXTILE PRODUCTS: CHEMICALS AND DRUGS: Clothing 81.7 81.6 81.7 81.7 81.2 Chemicals SI. 7 79.3 79.4 79.2 78.2 Cotton goods . . 65. 1 63.4 63.3 64. 1 65.1 Drusrs and Pharmaceuticals 74 8 71.9 71.9 71.9 71.8 Hosiery and underwear 59 8 60 2 60.2 60.1 60.2 Fertilizer materials _.. Rfi Q 69.6 69.7 69.5 67.5 Silk and rayon 29.9 37.8 40.7 39. 1 40.2 Mixed fertilizers. __ 7? 9 72.8 71.8 71.7 72.6 Woolen and worsted goods 75.9 75.2 75.4 75.6 75.4 HOUSEFURNISHING GOODS: Other textile products 65.4 64.9 65.3 64.2 64.1 Furnishings.. . 30.5 89.6 89.8 90.0 90.0 FUEL AND LIGHTING MA TERIALS Furniture 32.2 81.0 81.0 81.0 81.0 Anthracite ______ 76.2 74.7 75.3 75. 5 72.6 MlSCEL.ANEOUS: Bituminous coal 97 9 98 6 99 0 95 6 95 8 Auto tires and tubes 57 4 60 5 60 5 60. 5 60.5 Coke 104 2 104 2 104.2 L04. 2 104.2 Cattle feed 76 8 92. 1 87.4 81. 5 72.4 Electricity 84. 7 Paper and pulp ._. W 8 81.1 80.4 79.9 79.9 Gas 91 0 84 1 86.0 88.9 Rubber, crude 31 9 33.3 34 2 34.4 34.7 Petroleum products 56.8 51.9 52.5 52.5 52. 2 Other miscellaneous SO. 7 81.4 81.4 81.3 81,3 1 Preliminary revision. 2 Revised series. Back figures—For monthly and annual indexes of groups, see Annual Report for 1937 (table 86); for indexes of subgroups, see Annual Report for 1937 (table 87). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

814 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 AUGUST CROP REPORT, BY FEDERAL RESERVE DISTRICTS [Based on estimates of the Department of Agriculture, by States, as of August 1, 1939] [In thousands of units] Cotton Corn Winter wheat Spring wheat Federal Reserve district Produc- Estimate Produc- Estimate Produc- Estimate Produc- Estimate tion Aug. 1, tion Aug. 1, tion Aug. 1, tion Aug. 1, 1938 1939 1938 1939 1938 1939 1938 1939 Bales Bales Bushels Bushels Bushels Bushels Bushels Bushels Boston 7,633 7,456 68 60 New York 29, 317 24, 941 8,324 6,876 108 64 Philadelphia 52, 521 47, 889 19, 810 17, 067 139 156 Cleveland 199, 591 204, 262 52, 956 41, 692 120 84 Richmond 1,048 1,319 138, 232 140, 669 27, 263 24, 092 Atlanta 2,623 2,602 194, 289 154, 209 6,572 5,521 Chicago 1, 038, 749 1,050,414 67, 734 56, 474 1,847 1,907 St. Louis i 3, 386 2 3, 223 332,179 324, 780 66,081 55,903 143 97 Minneapolis.. . _ 227,136 247, 324 30, 268 24, 788 189, 588 146, 391 Kansas City 467 379 224, 284 156, 682 287, 758 223,169 10,148 4,430 Dallas __ 3,819 3,313 91, 577 94, 320 36, 020 30, 402 102 102 San Francisco 600 576 6,730 6,942 83, 851 64, 726 41, 901 27, 431 Total 11,943 11,412 2, 542, 238 2,459, 888 686, 637 550, 710 244,164 180, 722 Oats Tame hay Tobacco White potatoes Federal Reserve district Produc- Estimate Produc- Estimate Produc- Estimate Produc- Estimate tion Aug. 1, tion Aug. 1, tion Aug. 1, tion Aug. 1, 1938 1939 1938 1939 1938 1939 1938 1939 Bushels Bushels Tons Tons Pounds Pounds Bushels Bushels Boston 6 326 6,533 3,523 3,210 22, 847 33,003 47,316 57, 919 New York 27, 708 22, 293 5,737 4,486 1,842 1,965 32,123 27, 691 Philadelphia 19, 222 15, 544 2,376 1,927 32,110 31,215 22, 996 20, 423 Cleveland 49, 425 43,893 5,478 4,860 105, 694 115, 646 20, 554 19, 789 Richmond 20, 949 21, 827 3,729 3,342 746, 014 990, 442 27, 261 22, 827 Atlanta 15, 276 14, 606 3,419 3,246 188,189 188,916 15,466 14,514 Chicago 430, 768 350, 956 18, 379 17,014 33, 239 32, 801 53, 457 46,858 ,8t. Louis 51, 571 40, 909 6,825 6,955 241, 254 254, 467 13, 978 12, 212 Minneapolis- 235, 287 239,093 10, 745 9,397 2,733 2,667 43, 347 44,168 Kansas City 134, 530 75, 732 7,002 6,361 4,612 4,536 26,160 22,049 Dallas 39, 563 35, 355 1,403 1,402 3,778 3,370 San Francisco 23, 214 31, 285 11,683 11,101 65,181 65,014 Total 1,053, 839 898, 026 80, 299 73, 301 1, 378, 534 1, 655, 658 371,617 356, 834 1 Includes 16,000 bales grown in miscellaneous territory. 2 Includes 17,000 bales grown in miscellaneous territory. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1939 FEDERAL RESERVE BULLETIN 815 STATISTICS FOR FEDERAL RESERVE CHART BOOK Chart 1939 Chart book book page Ju 1 l 9 y Ju 2 l 6 y Au 2 g. Au 9 g. A 1 u 6 g. page May June July WEEKLY FIGURES Wednesday figures; in billions of MONTHLY FIGURES Index numbers RESERVES, GOLD, AND dollars BUSINESS CONDITIONS 1923-25=100 CURRENCY Wholesale commodity prices:* Reserve bank credit—total__ 3, 5 2.54 2.51 2.48 2.46 2.45 United States: Bills discounted 5 (0 0) 0) 0) 0) All commodities 31, 32 76.2 75.6 75.4 Bills bought 5 0) 0) 0) 0) Farm products 31 63. 7 62.4 62.6 U. S. Qov't securities. __ 5 2.52 2.49 2.45 2.44 0) Foods 31 68.2 67.6 67.5 T G M T R E M R r x r o e o E e e e c q l n P m a d a e N u R C C O e s s s i b s u u y s e h e o R r t e s w e r r i u o T r r y c y e i d e c I n n a r N s b k Y d v t c g r e c r G a e e e a o o r y i n p s s v r 2 r c M h e k c o k e b i r u s s E t v a b y — i l C M n e t a a s s i t k b l B t i * t a o s o a y E n 2 t n n 2 R a c k l e s 2 B s 2 A NKS 3 3 , , 7 7 6 9 7 3 6 3 3 7 7 1 1 7 2 4 2 6 5 0 1 . . . . . . . . . . . 4 5 9 1 0 5 4 0 7 2 5 9 6 3 1 3 2 5 4 6 9 8 1 1 2 4 7 5 6 2 0 1 . . . . . . . . . . . 5 9 0 4 2 0 2 5 7 4 5 1 3 5 0 7 3 7 4 9 4 7 P 1 1 4 2 P 7 5 2 0 6 1 . . . . . . . . . . . 5 3 0 9 4 0 2 8 4 3 6 1 1 7 5 5 5 5 6 6 2 0 P 1 1 2 P 4 7 5 2 0 6 1 . . . . . . . . . . . 3 0 9 4 5 0 2 5 8 3 6 1 5 7 7 8 5 6 0 4 7 2 P 1 1 4 2 P 2 7 2 6 0 6 1 . . . . . . . . . . . . 0 5 0 0 6 3 4 7 3 5 3 6 4 3 9 3 8 5 7 4 7 7 2 2 M D I F F F n r a a e a d e c c p n i u t t D N E T F G g a u o o s h r r o n t f r r o u e t a r y y t a t g r n r m - i n a c m a a c l O d p l c e t a e l b a u u a e a t m n r n l h p y r r n d e t i p a l e r r y 8 n o o o r b s l g a o t l d l c o l d e y u s o r i 6 m c e n m p t g e i s r m s o n o a n 5 t l d o e u 5 d s 6 c i t t i i e o . s _ n . _ : . • . . 4 3 4 3 3 4 3 3 4 3 3 3 7 7 3 1 5 3 2 7 5 2 7 2 8 9 3 8 9 9 5 9 8 6 7 7 0 0 8 4 8 9 2 3 5 1 8 2 . . . . . . 6 1 4 4 9 2 8 8 9 7 9 7 9 3 9 8 5 6 5 0 8 0 9 9 8 7 8 6 9 7 . . . . . . 9 3 6 2 2 5 * P > 8 8 9 7 P 9 3 ^ 1 0 7 9 . 0 5 0 4 6 8 . . . . 6 9 2 2 8 9 1 2 6 5 Department store stockss 47 66 r67 67 Total, 101 cities: Loans and investments 14 22.03 22.14 22.24 22.27 22.34 In millions of dollars Investments 14 13.91 13.94 14.08 14.12 14.15 Loans 14 8.12 8.19 8.17 8.16 8.19 Construction contracts awarded:7 Adjusted demand Total 41 257 258 ^273 deposits 15 17.39 17.60 17.46 17.55 17.64 Residential 41 102 108 Time deposits 15 5.22 5.24 5.24 5.25 5.25 Other 41 155 150 U. S. Gov't deposits 15 .55 .55 .55 .55 .54 Exports and imports: Domestic bank balances 15 6.91 6.80 7.01 7.05 7.18 Exports (incl. re-exports). 49 249 236 Foreign bank balances, _ 15 .62 .63 .62 .63 .66 General imports 49 203 179 New York City: Excess of exports 49 47 57 U. S. Gov't obligations.. 16 4.25 4.27 4.33 4.35 4.36 Income payments: Other securities 16 1.11 1.12 1.18 1.18 1.18 Total adjusted 50 5,422 5,468 P5, 468 Commercial loans 16 1.41 1.41 1.44 1.46 1.47 Total unadjusted 50 5,209 5,713 Pb, 494 Brokers' loans 16 .47 .52 .50 .48 .53 Compensation of em- 100 cities outside New York: ployees 50 3,627 3,695 P3, 559 U. S. Gov't obligations.- 17 6.41 6.42 6.43 6.44 6.45 Other 50 1,582 2,018 Pl, 935 Other securities 17 2.14 2.14 2.15 2.15 2.16 Cash farm income: Commercial loans 17 2.49 2.49 2.45 2.45 2.44 Total 51 589 552 570 Crops 51 147 160 213 MONEY RATES AND SECURITY Averages of daily figures'; per cent Livestock and products__ 51 361 341 321 MARKETS per annum Government payments... 51 81 51 36 F.R. bank discount rate, N.Y. 19 1.00 Commercial paper 19 .56 .56 .56 .56 .56 In billions of dollars Bankers'acceptances 19 .44 .44 .44 .44 .44 U. S. Treasury bills 21 .04 .04 .04 .04 .04 Central gold reserves: U. S. Treasury notes 21 .44 .43 .42 .43 .43 United States 15.96 16.11 P16. 24 U. S. Treasury bonds 21, 25 2.16 2.14 2.14 2.17 2.17 England 1.07 1.07 1.16 Corporate Aaa bonds 25 2.89 2.90 2.90 2.91 2.92 France 2.57 2.57 2.57 Corporate Baa bonds 25 4.82 4.79 4.78 4.79 4.82 Netherlands .82 .80 .77 U. S. Gov't interest-bearing Wednesday figures; in unit indicated debt—total 20 39.75 39.89 40.11 Bonds 20 27.10 27.17 27.25 Stock prices, totaH 27, 29 89 90 90 87 Notes 20 7.27 7.24 7.24 Industrial.. 27 104 105 105 102 100 Bills 20 1.31 1.31 1.31 Railroads 27 27 27 27 26 25 Special issues 20 4.07 4.17 4.32 Public utilities 27 86 89 90 88 87 Volume of trading2 (mill, Per cent per annum shares) 29 1.40 .94 .79 .57 Brokers' loans (mill, dollars) 29 615 681 655 631 Customers' rates: New York City 23 BUSINESS CONDITIONS Figures for week3; in unit indicated 8 other Northern and Eastern cities 23 Wholesale commodity prices:4 27 Southern and Western All commodities 33 75.2 74.8 75.1 74.8 74.6 cities 23 Farm products 33 62.2 61.4 62.5 61.4 60.4 Foods 33 67.5 66.7 67.2 66. 7 66.2 Oct.- Jan.- Apr.- Other commodities 33 80.4 80.4 80.5 80.5 80.4 QUARTERLY FIGURES Dec. Mar. June Steel plant operations 1938 1939 1939 (% of capacity) 38 56.4 60.6 59.3 60.1 62.1 Au (t t h o o m u o s b . i c le a rs p ) r oduction 38 47.4 40.6 28.3 24.9 13.0 In millions of dollars Electric power production Domestic corporation security (mill. kw. hrs.) 39 2,295 2,342 2,325 2,333 2,368 issues, total 28 799 276 '661 Total freight-car loadings New 28 167 82 rl29 (thous. cars) 39 656.3 659.8 661.1 665.2 674.2 Refunding 28 632 193 532 p Preliminary. r Revised. • Estimated. 5 Adjusted for seasonal variation. 2 1 3 F A L i e v g s e u s r r a t e g h s e a s a n r o e $ f 5 s d , h 0 a o 0 i w 0 ly , n 0 0 f u 0 ig n . u d r e e r s , t h se e e W fo e o d t n n e o s t d e3 a . y date included in the weekly period. 6 7 8 T P Se o h r i r i n e e t e s s - m i i n s o t n d o t i t h s a s c l o m i n n o t d i v e n i x u n e g o d f a . m ve a N r n a e g u w e fa a c d s tu e ju r r i s i e n t s e g d o p n fo ro r s d o s u m ea c e s t w o io n h n a a . l t va d r i i f a fe ti r o en n t . * Index numbers, 1926=100. basis to be substituted. NOTE.—Copies of this chart book can be obtained at a price of 50 cents. Banking statistics for call report dates are published from time to time. The latest figures appear on page 816 of this BULLETIN. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

816 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 BANKING STATISTICS FOR CALL REPORT DATES—CHART BOOK SERIES [In billions of dollars] 1936 1937 1938 1939 Chart book Dec. Mar. June Dec. Mar. June Sept. Dec. Mar. June 31 30 30 28 31 29 30 All banks in the United States: Total deposits and currency.. 57.48 56.79 57.42 56.83 56.78 56.74 57.64 59.12 •59. 17 ?60.99 Time deposits 25.40 25.69 25.96 26.26 26.34 26.27 26.18 26.30 26. 47 P26. 74 Demand deposits adjusted._. 25.53 25.23 25.26 24.05 24.13 24.39 25.19 26.10 P26.13 P27. 39 Currency outside banks 5.55 5.42 5.53 5.69 5.50 5.47 5.49 5.82 . 69 P6.06 Member banks: Demand deposits adjusted,. 11 21.65 21.35 21.40 20.39 20.51 20.89 21.60 22.29 22.36 23.59 Time deposits 11 10.99 11.16 11.35 11.52 11.59 11.56 11.46 11.51 11. 60 11.72 Interbank balances 11 6.40 5.75 5.30 5.44 5.62 6.10 6.09 6.51 6.82 7.10 Loans and investments 11 33.00 32.53 32.74 31.75 31.52 30.72 31.63 32.07 32.10 32.60 Investments, total 11 19.64 18.83 18.45 17.79 17.98 17.78 18.69 18.86 19.05 19.46 U. S. Government obligations, total 12 13.55 12.72 12.69 12.37 12.45 12.34 13.01 13.22 13.35 13.78 Direct obligations 13 11.64 10.86 10.87 10.57 10.63 10.22 10.71 10.88 10.69 10.95 Guaranteed obligations 13 1.91 1.86 1.82 1.80 1.83 2.13 2.30 2.34 2.66 2.83 Other securities, total 12 6.10 6.11 5.77 5.42 5.52 5.44 5.68 5.64 5.70 5.69 State and local government securities.. 13 2.21 2.33 2.13 2.03 2.19 2.13 2.30 2.45 2.55 2.55 Other domestic 13 3.65 3.53 3.40 3.21 3. 15 3.13 3.19 3.01 2.96 2.94 Foreign securities 13 .24 .25 .23 .18 .18 .18 .18 .18 .18 .19 Loans, total 11 13.36 13.70 14.29 13.96 13.55 12.94 12.94 13.21 13.05 13.14 Security loans, totall 2 .. 12 4.22 4.28 4.37 3.70 3.54 3.32 3.30 2 1.75 1.57 1.47 Brokers' loans 13 1.41 1.42 1.54 .95 .88 .70 .71 .97 .84 .73 Loans on securities (excluding brokers' loans) 5 13 2.79 2.82 2.83 2.75 2.67 2.61 2.59 2.78 .73 .74 Real estate loans 12,13 2.40 2.44 2.51 2.55 2.56 2.61 2.66 2.72 2.75 2.83 Other loans, total 12 12 6.73 6.97 7.41 7.71 7.45 7.01 6.97 2 8.74 8.73 8.85 Commercial loans 2_. 13 6.04 6.22 6.66 7.00 6.75 6.40 6.36 2 5.45 5.53 5.57 Open-market paper. 13 .63 .71 .64 .64 .61 .49 .48 .44 .42 .42 Loans to banks 13 .09 .10 .12 .07 .10 .12 .13 .12 .10 .06 All other loans' 3 2. 73 2.67 2.80 p Preliminary. 1 In chart 12 loans to banks on securities are included in the total of "security loans" prior to June 30, 1937 and in the total of "other loans" since that date. * Figures are reported on somewhat different basis beginning December 31, 1938. For detailed explanation of the changes and for estimates on old basis as of December 31, 1938, see BULLETIN for April 1939, page 332. 3 Not originally plotted in chart book. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTERNATIONAL FINANCIAL STATISTICS 817 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

818 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS [In millions of dollars] Countries in Tripartite Accord Other countries Total i Switzerland End of month c tr o ( i 5 u e 2 s n ) - U S n ta it te ed s U K d n i o i n m t g ed - France g B i e u l m - N la e e n r t d - h s - ti N on a- al B.I.S. g t A i e n r n a - - Brazil I B n i r d s i i h t a - Bul- C a a d n a - Chile China Bank 1934—December. 21,051 8,238 1,584 5,445 590 573 624 403 275 134 29 7 1935—December. 21, 604 10,125 1,648 4,395 611 438 454 444 275 189 29 10 1936—December. 22,630 11, 258 2,584 2,995 632 490 655 501 275 188 29 1937—December. 23,964 12, 760 2,689 2,564 597 930 469 274 184 30 1938—August 23, 966 13,136 2,690 2,428 517 1,008 435 274 190 30 17 September 24, 648 13, 760 2,690 2,428 539 1,008 690 435 274 187 30 17 October.... 24, 997 14,065 2,690 2,428 562 1,008 695 434 274 188 30 18 November. 25, 287 14, 312 2,690 2,435 584 1,008 434 274 186 30 18 December, 25, 468 14, 512 2,690 2,435 581 995 431 274 192 30 18 1939—January... 24,003 14, 682 1,042 2,435 582 995 431 274 197 30 19 February. 24,175 14, 874 1,042 2,435 588 974 680 431 274 206 30 20 March 24, 387 15, 258 1,066 2,435 518 909 640 428 274 210 30 21 April 24, 964 15, 791 1,066 2,574 520 834 428 274 212 30 21 May 25,140 15, 957 1,067 2,574 524 823 428 274 214 30 21 June P25, 280 16,110 1,067 2,574 540 800 428 274 213 P30 P21 July P25, 536 16, 238 1,162 2,574 573 595 P428 P213 ^30 P21 Other countries—Continued E m n o d n t o h f lo C m o b - ia C v z s a e lo k c - h ia o- m D a e r n k - Egypt Ger- Greece H ga u r n y - Italy 3 Japan Java M ic e o x- N l Z a e e n a w d - N w o ay r- Peru l P a o n - d 1934—Dec. _ 112 518 394 19 96 1935—Dec.. _ 112 270 425 20 84 1936—Dec.. _ 91 208 463 20 75 1937—Dec. . 92 210 261 82 20 83 1938—Aug... 93 210 164 101 19 85 Sept... 81 210 104 19 83 Oct.— 83 210 164 19 82 Nov... 83 210 164 19 84 Dec__ 83 193 164 20 85 1939—Jan. ___ 83 193 164 19 85 Feb.,. 83 193 164 19 85 Mar... 67 193 164 19 85 April- 66 193 164 107 19 84 May.. 65 193 164 107 19 84 June... 62 193 P164 107 P19 84 July— 60 193 ?164 107 P19 Government gold reserves1 not included Other countries—Continued in total for 52 countries End of month 16 Portu- Ru n m ia a- A So fr u ic th a Spain4 S d w e e n - T k u ey r- g U u r a u y - Y sl u av g i o a - t c o r o t i h e u s e n r 6 - E m n o d n t o h f U S n ta i t t e e s d U K d n i o i n m t g e - d France g B i e u l m - 1934—Dec 104 184 740 159 154 1934—Dec... 31 1935—Dec 109 212 735 185 158 1935—Dec... 53 1936—Dec 114 203 718 240 175 1936—Dec. _ _ 93 1937—Dec 120 189 718 244 51 169 1937—Dec. _ 81 1938—Aug 124 202 525 280 55 125 1938—Mar... 1,489 Sept 129 220 525 310 56 125 June.. 244 62 Oct 132 219 525 321 56 127 Sept... 759 Nov 132 220 525 321 57 125 Oct.— 2 103 Dec 133 220 525 321 57 125 Nov... 130 1939— A F M Ja e p a n b r r il 1 1 1 1 3 3 3 3 3 4 4 5 2 2 2 2 2 2 1 1 0 1 9 8 5 5 5 5 2 2 2 2 5 5 5 5 3 3 3 3 3 3 3 3 1 1 2 9 5 5 5 5 7 7 7 7 1 1 1 1 2 2 2 2 6 4 6 7 1939— D F M J e e a a b n c r . . . . , . . . . . . . . 80 1 ( ,7 ) 32 3 3 4 5 8 3 5 6 1 1 3 5 May 136 218 525 344 68 57 126 Apr.._ 4^449 June 137 219 525 346 57 P125 June — July P137 525 348 57 P126 July.. p Preliminary. 1 Reported at infrequent intervals or on de- 1 Data reported monthly incomplete. For additional data see section at end of table. layed basis: U. S.—Exchange Stabilization Fund 2 Figure for May 1939 officially reported and carried forward. (Special A/c No. 1); U. K.—Exchange Equaliza- 3 Figure for Mar. 1937 officially reported as of 20th of month and carried forward through tion Account; France—Exchange Stabilization Nov. 1937. Figures for Dec. 1937 through Mar. 1938 officially reported and carried forward Fund and Fund for Support of Rentes; Belthrough Nov. 1938. Figure for Dec. 1938 officially reported and carried forward. gium—Treasury. Gold in stabilization funds of * Figure for Aug. 1, 1936, carried forward through Mar. 1938; Apr. 1938 figure officially re- Switzerland and Netherlands and certain other ported and carried forward. gold of central banks and governments not rea These 16 countries are: Albania, Algeria, Australia, Austria through Mar. 7, 1938, Belgian ported. Congo, Bolivia, Danzig, Ecuador, El Salvador, Estonia, Guatemala, Finland, Latvia, Lithuania, 2 First date reported. Morocco, and Siam. s $1,648,000,000 transferred Jan. 6, 1939, from NOTE.—For back figures and description of table see BULLETIN for June 1933, pp. 368-372, Bank of England to Exchange Account; $26,and July 1936, pp. 544-547; also see footnotes to table in BULLETIN for Aug. 1936, p. 667, and Dec 000,000 transferred back on Mar. 1, and $94,000,- 1937, p. 1262. 000 on July 12, 1939. 4 $140,000,000 transferred from Fund to Bank on April 20, 1939. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1939 FEDERAL RESERVE BULLETIN 819 GOLD PRODUCTION Outside U. S. S. R. [In thousands of dollars] Estimated Production reported monthly world Year or month pr t o io d n uc- Africa North and South America Far East U o . u S t . s S id .R e . Total A So fr u ic th a d R e 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 U St n a i t t e ed s' r^aarnmafaiaf l M M e p x \ i - c ir o n Co b l i o a m- Chile lia B I r n i d ti i s a h $1=25-8/10 grains of gold 9/10 fine; i. e., an ounce of fine gold=$20.67 1929_. 382, 532 352, 237 215, 242 11, 607 4,297 2,390 45,651 39,862 13, 463 2,823 683 8,712 7,508 1930_. 401,088 365, 258 221, 526 11,476 4,995 2,699 47, 248 43,454 13,813 3,281 428 9,553 6,785 1931.. 426,424 386, 293 224, 863 11,193 5,524 3,224 49, 527 55, 687 12, 866 4,016 442 12,134 6,815 1932.. 458,102 413, 459 238, 931 12,000 5,992 3,642 50, 626 62, 933 12, 070 5,132 788 14, 563 6,782 1933.. 469, 257 411, 208 227, 673 13, 335 6,623 3,631 52, 842 60,968 13,169 6,165 3,009 16, 873 6,919 $1=15-5/21 grains of gold 9/10 fine; i. e., an ounce of fine gold=$35 1933. 794, 498 696, 218 385, 474 22, 578 11,214 6,148 89,467 103, 224 22, 297 10, 438 5,094 28, 568 11,715 1934. 823, 003 707, 288 366, 795 24, 264 12,153 6,549 108,191 104, 023 23,135 12, 045 8,350 30, 559 11, 223 1935.. 882, 533 751, 979 377, 090 25, 477 13, 625 7,159 126, 325 114, 971 23, 858 11,515 9,251 31, 240 11,468 1936. 971, 514 833,088 396, 768 28, 053 16, 295 7,386 152, 509 131,181 26, 465 13, 632 9,018 40,118 11, 663 1937.. 1, 041, 987 892, 535 410, 710 28, 296 20, 784 8,018 168,159 143, 367 29, 591 15,478 9,544 46, 982 11,607 1938.. 1,116, 983 956, 851 425, 649 28, 532 24, 670 8,470 178,143 165, 055 32, 306 18, 225 10, 290 54, 264 11, 247 1938—April 87, 533 74, 862 34, 351 2,374 2,024 702 12, 577 12, 895 2,389 1,664 4,280 906 May 90,445 77, 371 35, 794 2,415 1,989 686 13, 953 13, 338 1,863 1,338 782 4,278 935 June 91, 242 78, 048 35, 509 2,394 2,020 726 12, 949 13, 674 3,024 1,365 901 4,577 909 July , 98,492 84, 946 36, 222 2,410 2,067 716 16, 781 14, 727 4,241 1,748 752 4,330 951 August 97, 845 83, 994 36, 622 2,415 2,053 716 16, 590 14, 425 2,941 1,515 986 4,771 958 September, 97, 386 83, 320 36, 237 2,365 2,048 743 16, 937 14, 336 2,062 1,812 1,019 4,816 946 October 96, 785 82, 899 36, 449 2,445 2,174 725 16, 320 14, 394 2,265 1,622 906 4,642 956 November - 98, 596 84, 708 35, 842 2,381 2,204 728 18, 579 14, 351 2,353 1,628 930 4,783 930 December.. 98, 702 84,189 36, 007 2,318 2,240 751 16, 068 15,186 2,700 1,499 1,033 5,393 995 1939—January.._ 94, 835 80,159 36,188 2,287 2,230 753 14, 919 14, 396 1,762 1,953 655 4,076 940 February.. 90, 964 76, 749 34, 505 2,069 2,221 688 13,153 13, 684 3,421 1,562 568 4,016 863 March 97, 627 82, 656 37, 558 2,202 2,346 767 14, 364 14, 498 2,542 1,752 1,198 4,492 938 April 94, 435 79, 728 35, 613 2,252 2,349 729 15, 260 14, 238 1,733 1,513 830 4,301 912 May *>98, 267 PS3, 551 37, 970 2,355 v% 360 779 15,167 15,133 1,794 1,614 P795 4,649 936 June P96, 902 P81, 344 37, 065 P2, 363 P2, 347 756 14, 460 PU, 840 PI, 794 1,551 P865 Pi, 369 *>936 Gold production in U. S. S. R.: No regular Government statistics on gold production in U. S. S. R. are available, but data of percentage changes irregularly given out by officials of the gold mining industry, together with certain direct figures for past years, afford a basis for estimating annual production, in millions of dollars, as follows—at $20.67 per fine ounce: 1929, $15; 1930, $31; 1931, $34; 1932, $40; 1933, $56; at $35 per fine ounce: 1933, $95 1934, $135; 1935, $158; 1936, $185; 1937, $180; 1938 (preliminary), $184. p Preliminary. i Includes production in the Philippines. NOTE.—For monthly figures back to January 1929 and for explanation of table see BULLETINS for March 1939, p. 227, February 1939, p. 151, June 1938, pp. 549-540, and April 1933, pp. 233-35. For annual figures of world production back to 1873 (including Russia-U.S.S.R.), see Annual Report of Director of Mint for 1936, pp. 108-109, 1937, pp. 104-105 and 1938, pp. 102-103. Figures for Canada beginning January 1938 are subject to official revision. GOLD MOVEMENTS [In thousands of dollars at approximately $35 a fine ounce] United States Total Net imports from or net exports (—) to: net Year or month 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 g B iu e m l- N la e e n r t d - h s - S d w e e n - S l z a w e n r i d - t- 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 A tr u a s l - ia Japan B I r n i d ti i s a h c o t o r A t i h u e l e n l s r - 1934 1 1,131, 499, 870 260, 223 8,902 94, 348 12, 402 86, 829 30, 270 16, 944 12,038 1,029 76, 820 32, 316 1935.. 1, 739, 019 315, 727 934, 243 3 227,185 968 95,171 13, 667 10, 899 15, 335 3, •" 75, 268 47, 054 1936.. 1,116, 584 174,093 573, 671 3,351 71,006 7,511 72, 648 39,966 11,911 21, 513 2~33, ,:280 77, 892 39, 743 1937.. 1, 585, 503 891, 531-13,710 90, 859 6,461 54, 452 111, 480 38, 482 18, 397 25; 427 34, 713 246, 464 50, 762 30,179 1938.. 1, 973, 5691, 208, 728 81,135 15, 488 163,049 60,146 1,363 76, 315 36, 472 10, 557 27, 880 39,162 168, 740 16,159 1 68, 376 1938—May 52, 775 2,895 35 891 10, 221 630 5,650 2,108 2,285 3,582 21, 950 2,530 June 55, 307 20, 599 3,248 57111, 520 226 726 715 1 3,232 2,984 5,782 2,252 3,438 July 63, 815 4,976 7,685 962 11,123 1 2,422 3, 434 28, 669 1,148 2,495 August 165, 973 91, 227 4,721 3,213 15, 360 14, 333 3,183 2,113 1,772 2,748 23, 497 3,806 September. _ 520, 377, 984 47,: .1, 521 38,148 1,446 4 2,721 3,775 35,095 2,982 October 562, 366 443, 403 42, 959 41, 832 3,840 1 10, 810 2,236 4 2,720 3,294 5,740 760 4,768 November. _ 177, 768 99,145 17 27, 242 1,136 7,171 3,457 11 2,943 7,888 5,788 3,822 2 19, 150 December.. 240, 526 101, 707 37, 395 1,979 46,185 731 2,550 2,107 2,655 6,788 14, 425 1,797 2 22, 207 1939—January 156, 345 52, 050 1,438 33, 678 2 -67 10, 842 2,342 2,089 2,754 6,585 37, 819 1 5, 124 February-__ 223, 281 165, 377 1,400 29, 256 3,840 4,220 2,496 2,719 3,953 5,446 175 4,398 March 365, 384 250, 042 816 37,179 27, 098 8,227 6,852 3,822 4,234 3,326 4,303 11, 410 3,685 4,391 April.- 605, 797 384, 925 21 84, 603 44, 564 55, 680 7, f" ~ 1,649 2,114 2,179 4,844 5,528 4,944 3 7, 073 May 429, 404 302, 66' 3 41, 651 40, 449 2,284 12, 066 2,050 2,117 2,594 5,295 10, 931 3,390 3,909 June 240, 430 128,196 2 55, 081 5,644 17,191 3,280 2,107 3,843 5,677 14, 093 2,244 3,072 July 278,636 177,805 1 45,554 10 5,1" 15,196 4,150 2,123 3,022 5,034 10, 938 2,760 6,416 1 Differs from official customhouse figures in which imports and exports for January 1934 are valued at approximately $20.67 a fine ounce. 2 Figures for November and December 1938 include imports from Argentina of $14,112,000 and $17,710,000, respectively. 3 Includes $4,503,000 from Argentina. NOTE.—For gross import and exports figures and for additional countries see table on p. 788. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

820 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 GOLD MOVEMENTS—Continued [In thousands of dollars at approximately $35 a fine ounce] United Kingdom Net imports from or net exports (—) to: Year or Total month net im- South All e o p x r o p n r o t e r s t t s U S n ta i t t e e s d France m G a e n r y - 1 g B i e u l m - N l e a t n h d e s r- U.S.S.R. Au li s a tra- A d R f e h r s i o i c - a a , , B I r n i d ti i s a h B O c r o t i u h ti n e s - r h S d w e e n - e S r w la i n tz d - c o t o r t i u h e n e s r - West tries Africa 1934.. 716, 269 -497,166 348,190 121,017-13, 585 32, 575 41,790 335, 253 206, 693 62, 397 -9,123 L935-. 369, 722 -435, 502 142,137 -4, 726-17,476 10,796 931 37, 981 404, 295 181, 602 32, 754 -50, 661 53, 465 14,126 1936.. 1,169, 931 -276,830 756, 215 23, 292-15,133-21,215 26, 723 488, 814 128, 421 28, 067 -10,129 37, 708 1937.. 420, 427 -834,009 541,187 46,147-21,993-16,572 199,965 24,165 464, 837 66, 330 22,079 -81 -16,596 ;-55,032 1938.. - 285, 638 -1,050,395 38,899 33,173 348,000-46,463 115, 540 27, 831 333, 750 55, 744 20, 761 -89, 371-78,029 4,922 1938—May... 97,478 —5,233 -119 168 48,446 -6, 781 2,467 35,407 3,824 2,139 -13,996 -2, 263 5,336 June... 89, 580 -20,811 -6,137| 57 56, 764-12,037 28,104 2,024 40, 623 3,725 9,929 -7, 673 -5, 407 421 July... 24,119 -10,529 -997 47 23, 212 -5,750 2,490 31, 516 6,418 6,581 -11, 429 -16, 521 -920 Aug._. -73,132 -93, 660 -5,726! 6,164 -258 -10,041 5,665 2,102 31,192 10, 356 3,035 -11,151 -10, 498 -312 Sept... -261,143 -360,016 685 14, 358 120,075 -7, 498 8 2,839 16, 831 3,023 -4, 750 -22, 763 -21, 980 -1, 955 Oct.... -210,171 -308, 528 69,604 4,077 33,982 535 705 6,530 4,204 -20,792 -4, 671 2,831 1,353 Nov... -96, 508 -105,220 -66| 6,005 -2,328 -5,245 155 2,695 4,260 618 1,017 1,603 Dec... -66, 726 -97,371 758! 2,057 9,990 5,649 528 7,358 1,815 531 1,511 1,347 1939—Jan. __, -36, 514 -50, 814 -3 -3;33 211 -253 5,672 681 5,671 304 1,374 -3,790 704 3,762 Feb... -148,005 -160,218 111 396 779 5,613 736 3,451 151 -1,101 -1 399 1,847 Mar.. -259,984 -306,839 -183 23,477 1,039 16,866 5,559 1,417 -1,148 -32 -3,845 3,618 Apr... -121,188 -357, 518 -1,431 29| 176, 451 19,164 12, 656 4,805 4-47, 875 -43: 73, 394 -425 May . -294, 077 -287, 762 -262! 4,01i 2, 008! 49,004 5,631 143 45, 394 2, 97r4-145,856 -3, 793 32, 921 1,504 June.. -51,591 -127,293 -4121 -SSj 415! 22, 968 52, 636 2,388 911 -2 153 -3,318 Julyp . -137,376 -170,928 -120L 1821 8,866 38, 395 747 329 -657 -14,190 Germany Switzerland British India Net imports from or net exports (—) to: Increase in India: Year or Total Total Total month n e o e x p r t ( p o ) n o r im t r e s t t s - 1 i e m o x r n p p e n o o t e r r t t t s s U S n ta i t t e e s d U K d n i o i n m t g e - d France g B i e u l m - Italy N la e e n r t d - h s - m G a e n r y - * c o t o A r th i u e l e n l s r - i e m o x r ( n p p ) e n o o t e r r t t t s s p t I i r G o n o o n d d l i u d i a n c- s d e I r I r i n e n a v - - n es ea f e o r g d m r I o e n f l i a o d g r n r k- p i h r n i o I v g n ld a s8 t - e account 1934 -90,920 -46,065 -12,784 -45, 955 -29, 235 18, 397 19,431 2,580 -43 1,543 -230, 720 11,223 173 1935 42, 969 -230, 788 647-54,858 -181,725 -13,940 25, 542 342 -9, 607 7 2,812 -161,872 11, 468 -6 1936 122, 278 -9,127 -1,714 39, 305 14, 531 51, 299 4,600 -2,990 s 26, 368 -121,066 11, 663 1937 -3,' 718 -56,946 -51, 608 11, 940 -45,061 27, 739 -657 6,553 16,461 10,609 -61, 723 11, 607 1938 -35, 224 -1,245 -1,128 76, 620 -74, 375 -1,067 11,314 25,125 32, 745 -54,661 11, 247 12, 078 1938—May. _ 18,058 -5,201 33 —2,! -1,549 -2,009 2,396 -6,175 187 -3, 452 935 June.. 7,626 5,978 -220 5,256 -7,839 -484 5,814 5,657 -2, 487 282 -2, 327 909 July.. 1,468 -8,837 -2 16,128 -14,071 -6,041 -142 3,962 -8, 893 222 -10,988 951 Aug... -6, 864 -1,338 o 10,464 -8, 382 -1,283 -37 3,824 -6, 267 342 -7,082 958 Sept.. -36, 626 9,024 -7 15,940 418 117 -2 924 -10,251 -957 946 Oct... -16,134 1,454 -1,140 907 -616 -158 -38 2,551 -56 3 -7,622 956 1,909 Nov. . -10,129 913 228 13 33 -117 -4 994 -265 31 -2,283 930 5,690 Dec.__ -3, 765 -5,690 -1,854 -139 -166 2, 884 -438 -209 211 995 4,479 1939—Jan. __ 33 -3, 786 549 -149 1 -2, 294 -1,274 -7 -125 940 11, 423 Feb... -11,940 -2,112 -21 -763 24 -213 556 -1,581 -97 -15 -3,288 863 7.749 M Ap a r r. . .. . 9, - - 1 3 6 7 2 , , 3 6 3 4 2 5 - - 1 5 0 4 , , 7 2 8 6 6 6-104 1 , ,5 6 4 5 7 0 - -4 1 , , -1 - , 8 5 6 0 4 9 10 - , 5 8 7 1 6 9 - - 8 3 , , 8 3 7 2 6 7 - - 1 2 4 , , 4 8 3 3 1 0 -2 - , 8 5 6 7 0 3 - - 5 3, , 1 3 1 9 3 4 9 9 3 1 8 2 -3 4 5 , , 8 1 1 9 2 7 J M un ay e. . . . -5 9 - , 2 , 8 9 8 0 6 4 7 7 -10 8 7 , , , 6 0 7 9 5 7 6 9 5 - - - 2 8 2 , , , 9 5 3 7 8 2 3 9 9 -5 1 ,4 ,1 1 4 9 9 3 3 - - 1 1 , , 6 1 2 0 4 6 9 4 9 -73 6 1 1 9 0 , , 5 - 7 8 8 4 5 9 -7 7 2 1 2 2 8 , 9 - -3 1 - , , 2 1 1 2 1 3 9 6 8 -2 - 3 7 9 6 P - - 4 3 , , 2 7 0 7' 2 937 1,839 p Preliminary. 1 Beginning April 1938 figures refer to Greater Germany. 2 Includes $17,465,000 exported to Rumania and unspecified net imports of $95,937,000. * Includes $67,655,000 exported to Central and South America. Fi f Ail d M i ld t t Canada of $45,972,000 and $144,910,000 respectively. t; subsequently, gold held by Reserve Bank of India to which government gold was transferred. Figures derived from preceding columns; god movement plus production minus increases in Indian reserves and gold earmarked for foreign account in India. 1 Includes net import of $19,926,000 from Czecho-Slovakia and net export of $15,374,000 to Austria. 8 Includes net import of $26,555,000 from Czecho-Slovakia. NOTE.—Switzerland.—In some cases annual aggregates of official monthly figures differ somewhat from revised official totals published for year as a whole. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1939 FEDERAL RESERVE BULLETIN 821 INTERNATIONAL CAPITAL TRANSACTIONS OF THE UNITED STATES NET CAPITAL MOVEMENT TO UNITED STATES SINCE JANUARY 2, 1935 [In millions of dollars. Minus sign indicates net movement from United States] TABLE 1.—TOTAL CAPITAL MOVEMENT Increase in foreign banking funds in U. S. Decrease Foreign Domestic in U. S. securities: securities: Inflow in From Jan. 2, 1935, through- Total Total C f b e u a n n n t d k r s al Other b a f a b u n r n k o d i a s n d g o R f f u e U n tu d . r s S n . In f f o f u l r o n e w i d g s n of b b r a o l k a e n r c a e g s e in N. Y. 1935—Dec. 31. 1,412.5 603.3 593.5 361.4 125.2 316.7 6.0 1936—Dec. 30_ 2, 608.4 930.5 81.1 849.4 431.5 316.2 917.4 12.9 1937—Dec. 29. 3, 410. 3 1,168. 5 243.9 924.6 449.1 583.2 1,162. 0 47.5 1938—Sept. 28. 3,452. 9 1,161. 2 168.0 993.2 477.2 625.0 1,125. 4 64.1 Dec. 28. 3, 779. 2 1, 432. 7 216.3 1, 216. 5 478.1 610.0 1, 210. 9 47.6 1939—Apr. 26. 4,479. 6 1,934. 4 240.9 1, 693. 5 611.8 657.5 1, 202. 9 73.0 May 3- 4, 523. 7 2, 019. 6 245.9 1, 773. 6 596.1 621.8 1,211.9 74.4 May 10. 4, 544. 5 2, 030. 7 264.5 1, 766. 2 591.3 637.1 1, 210. 2 75.3 May 17. 4, 567. 6 2, 042. 8 292.8 1, 750. 0 597.3 642.3 1,211.8 73.4 May 24. 4, 570. 0 2, 046. 3 299. 1 1, 747. 3 596.0 644.1 1, 209. 3 74.2 May 31. 4, 570. 8 2, 041. 5 302.1 1, 739. 5 647.6 1, 209. 2 72.7 TABLE 2.—TOTAL CAPITAL MOVEMENT, BY COUNTKIES From th r J o a u n g . h 2 — , 1935, Total U K d n i o i n m t g e - d France N la e e n r t d - h s - S l w a e n r i - t d z- m G a e n r- y Italy E O u t r h o e p r e E T u o ro ta p l e Canada A L m a e t r i i n ca E F a a s r t o A th l e l r 1935—Dec. 31 1,412. 5 554.9 210.2 114.5 130.4 36.6 24.0 130.0 1,200. 6 0) 70.9 128.3 12.7 1936—Dec. 30 2,608. 4 829.3 299.5 229.7 335.5 83.1 45.6 228.5 2,051.3 150.5 201.2 184.0 21.4 1937—Dec. 29 3,410. 3 993.7 281.7 311.9 607.5 123.9 22.1 312.2 2, 653. 0 106.3 410.6 224.6 15.9 1938—Sept. 28 3, 452. 9 983.2 308.7 298.2 504.3 131.5 20.6 434.5 2, 681.1 124.8 442.9 167.1 37.1 Dec. 28 3, 779. 2 1,186.1 339.5 324.6 554.0 140.7 33.0 463.8 3,041. 7 157.2 389.5 156.8 34.1 1939—Apr. 26 4, 479. 6 1, 303. 3 421.6 405.4 595.6 146.9 26.0 595.9 3, 494. 7 216.8 480.6 231.4 56.2 May 3 4, 523. 7 1, 316. 2 430.1 405.1 598.1 149.0 26.0 605.7 3, 530. 2 226. 3 491.5 222.1 53.6 May 10 4, 544. 5 1, 313. 7 430.0 406.2 599.8 148.0 26.1 604.3 3, 528. 0 237.8 499.7 226.0 53.1 May 17 4, 567. 6 1,331.0 428.1 402.3 602.1 148.6 27.2 605.3 3, 544. 7 239.8 499.1 230.2 53.8 May 24 4, 570. 0 1, 334. 6 426.9 393.7 598.3 148.2 28.6 608.7 3, 539. 0 242.0 505.8 226.7 56.5 May 31 4, 570. 8 1, 337. 6 431.1 391.1 595.3 148.7 29.1 606.5 3, 539. 4 241.0 507.4 226.4 56.6 TABLE 3.—FOREIGN BANKING FUNDS IN UNITED STATES, BY COUNTRIES From th r J o a u n g . h 2 — , 1935, Total U K d n i o i n m t g e - d France N la e e n r t d - h s - S l w a e n r i - t d z- m G a e n r y - Italy E O u t r h o e p r e E T u o ro ta p l e Canada A L m a e t r i i n ca E F a a s r t o A th l e l r 1935—Dec. 31 603.3 128.6 129.6 55.7 72.4 -.8 7.3 60.7 453.5 46.0 33.5 58.8 11.5 1936—Dec. 30 930.5 163.5 144.2 65.9 109.8 2.7 23.0 79.7 588.9 86.8 149.3 90.4 15.2 1937—Dec. 29 1,168. 5 189.3 111.8 76.3 288.4 9.6 6.9 109.4 791.7 76.3 166.3 126.2 8.0 1938—Sept. 28 1,161. 2 236.3 133.5 68.3 177.3 -12.0 -1.5 185.9 787.8 90.7 164.1 96.9 21.7 Dec. 28 1,432. 7 366.7 158.8 84.4 203.7 -9.8 3.8 203.0 1,010. 6 135.1 134.0 132.7 20.4 1939—Apr. 26 1, 934. 4 476.7 236.8 141.0 230.6 -15.7 -5.7 318.4 1,382.1 166.9 209.6 140.4 35.3 May 3 2, 019. 6 484.9 244.3 139.4 230.8 -15.1 -6.4 324.3 1, 402. 2 216.8 221.0 145.2 34.3 May 10 2,030. 7 489.2 243.6 141.0 232.2 -15.9 -6.7 322.6 1, 405. 9 215.2 228.0 147.9 33.6 May 17 2, 042. 8 503.0 239.6 136.2 233.4 -15. 1 -6.5 323.2 1,413.8 213.5 236.4 145.1 34.1 May 24 2, 046. 3 507.9 239.5 126.7 228.2 -15.6 -5.1 326.7 1, 408. 3 212.6 247.8 140.7 37.1 May 31 2, 041. 5 505.8 243.2 123.2 224.7 -14.0 -4.4 323.6 1, 402.1 209.3 250.7 142.8 36.6 rABLE 4.—UNITED STATES BANKING ]FUNDS L\BROAD, BY COUNTRIES From th r J o a u n g . h 2 — , 1935, Total U K d n i o i n m t g e - d France N la e e n r t d - h s - S l w a e n r i - t d z- m G a e n r- y Italy E O u t r h o e p r e E T u o ro ta p l e Canada A L m a e t r i i n ca E F a a s r t ot A h l e l r 1935—Dec. 31 361.4 208.8 48.1 -.4 1.6 29.7 13.7 8.8 310.2 -4.6 20.1 37.3 -1.6 1936—Dec. 30 431.5 178.0 62.0 -3.3 2.7 66.0 16.3 22.0 343.7 36.9 24.9 30.4 -4.4 1937—Dec. 29 449.1 207.4 65.3 -4.4 2.6 105.1 6.5 26.9 409.3 -21.7 51.6 18.7 -8.7 1938—Sept. 28 477.2 170.3 67.4 -4.0 3.7 132.1 10.2 33.4 413.1 12.3 71.8 -16.0 -3.9 Dec. 28 478.1 204.5 65.5 -6.9 2.6 140.3 13.9 33.0 453.0 30.6 66.8 -65.0 -7.2 1939—Apr. 26 611.8 227.9 67.1 .7 4.5 151.7 13.7 35.1 500.8 48.3 71.1 -6.0 -2.4 May 3 596. 1 229.9 67.3 .7 3.9 153. 1 14.1 38.3 507.2 44.0 69.5 -20.1 -4.6 May 10 591.3 225.8 67.2 -1.1 4.0 153.0 14.6 38.3 501.8 44.0 70.4 -20.1 -4.8 May 17 597.3 231.1 70.2 -1.2 3.7 152.8 15.3 38.0 509.9 45.2 61. 1 -14.4 -4.6 May 24 596.0 231. 1 68.9 —. 7 4.2 153.0 15.4 37.8 509.7 47.6 56.3 -12.7 -4.8 May 31 599.8 236.8 68.1 4.7 152.0 15.3 38.7 515.4 46.9 54.8 -13.0 -4.3 i Inflow less than $50,000. NOTE.—Statistics reported by banks, bankers, brokers, and dealers. For back figures and description of the statistics, see BULLETIN for April 1939, pp. 284-296, April 1938, pp. 267-277, and May 1937, pp. 394-431. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

822 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 INTERNATIONAL CAPITAL TRANSACTIONS OF THE UNITED STATES—Continued NET CAPITAL MOVEMENT TO UNITED STATES SINCE JANUARY 2, 1935—Continued ' [In millions of dollars. Minus sign indicates net movement from United States] TABLE 5.—FOREIGN SECURITIES, BY COUNTRIES Net Purchases by Foreigners From th r J o a u n g . h 2 — , 1935, Total U K d n i o i n m t g e - d France N la e e n r t d - h s - S l w a e n r i - t d z- m G a e n r- y Italy E O u t r h o e p r e E T u o ro ta p l e Canada A L m a e t r i i n ca E F a a s r t o A th l e l r 1935—Dec. 31 125.2 67.8 6.8 7.4 -1.2 13.3 2.9 46.1 143.1 -39.7 12.7 7.9 1.1 1936—Dec. 30 316.2 116.1 18.2 10.4 13.7 22.5 9.4 87.9 278.3 1.7 15.7 17.0 3.5 1937—Dec. 29 583.2 136.8 22.8 21.2 30.4 26.6 13.5 115.2 366.4 10.5 175.0 24.5 6.8 1938—Sept. 28 625.0 129.3 24.2 23.8 30.5 31.9 17.0 155.2 411.9 -11.2 184.7 30.9 8.7 Dec. 28 610.0 129.1 26.2 27.3 37.1 33.1 20.5 165.9 439.1 -38.9 166.3 33.8 9.7 1939—Apr. 26 657.5 128.7 27.5 29.3 40.1 35.2 23.2 178.2 462.0 -24.3 173.5 35.9 10.3 May 3 621.8 129.1 27.6 29.4 40.4 35.2 23.6 178.7 464.0 -63.3 174.5 36.2 10.4 May 10 637.1 128.9 27.8 29.5 40.4 35.3 23.6 179.0 464.4 -48.9 174.7 36.4 10.4 May 17 642.3 128.5 27.9 29.6 40.9 35.4 23.6 179.3 465.1 -44.7 174.9 36.5 10.4 May 24 644.1 128.4 28.0 29.6 40.9 35.4 23.6 179.5 465.6 -43.5 175.2 36.6 10.4 May 31 647.6 128.1 27.9 29.6 41.3 35.4 23.6 179.8 465.7 -40.3 175.2 36.6 10.4 TABLE 6.—DOMESTIC SECURITIES, BY COUNTRIES Net Purchases by Foreigners United Neth- Switz- From th r J o a u n g . h 2 — , 1935, Total K d i o n m g- France la e n r d - s la e n r- d m G a e n r y - Italy E O u t r h o e p r e E T u o ro ta p l e Canada Am La e t r i i n ca E F a a s r t o A th l e l r 1935—Dec. 31 316.7 149.8 23.4 50.5 55.1 -5.4 -.1 12.9 286.2 2.8 3.7 21.4 2.6 1936—Dec. 30 917.4 367.7 64.7 157.6 200.2 -7.5 -3.3 38.5 818.0 32.6 15.5 44.1 7.1 1937—Dec. 29 1,162.0 448.7 70.3 213.8 275.3 -17.4 -4.9 55.7 1,041. 6 37.6 18.2 54.7 9.8 1938—Sept. 28 1,125. 4 430.5 67.8 203.3 282.2 -20.4 -5.3 53.0 1,011.2 27.7 21.9 54.5 10.1 Dec. 28 1, 210. 9 472.6 76.5 212.9 301.7 -22.7 -5.4 56.6 1,092. 3 27.8 23.4 56.4 11.0 1939-Apr. 26 1, 202. 9 452.6 73.9 224.1 310.0 -24.2 -5.5 56.7 1, 087. 6 16.7 25.6 60.4 12.5 May 3 1,211.9 454.6 73.9 225.4 311.8 -24.2 -5.5 56.7 1,092. 7 19.4 25.8 60.9 13.0 May 10 . 1, 210. 2 452.1 74.4 226.8 312.1 -24.2 -5.5 57.0 1, 092. 6 16.9 25.8 61.6 13.4 May 17 1,211.8 450.7 74.4 227.7 313.5 -24.3 -5.5 57.3 1, 093. 7 16.4 26.1 62.2 13.5 May 24 1, 209. 3 449.2 74.3 228.4 314.1 -24.4 -5.5 57.2 1, 093. 3 15.9 25.7 61.0 13.5 May 31 1, 209. 2 448.9 75.6 228.9 313.9 -24.6 -5.6 57.2 1, 094. 4 16.6 25.8 59.0 13.5 TABLE 7.—BROKERAGE BALANCES, BY COUNTRIES From th r J o a u n g . h 2 — , 1935, Total U K d n i o i n m t g e - d France N la e e n r t d - h s - S l w a e n r i - t d z- m G a e n r- y Italy E O u t r h o e p r e E T u o ro ta p l e Canada A L m a e t r i i n ca E F a a s r t o A th ll er 1935—Dec. 31 6.0 0) 2.4 1.3 2.5 -.2 .1 1.4 7.6 -4.5 1.0 2.9 -.9 1936—Dec. 30 12.9 4.0 10.4 Q 9.1 -.7 .3 .4 22.6 -7.6 -4.2 2.1 (2) 1937—Dec. 29 47.5 11.5 11.5 5^0 10.8 0) .1 5.0 44.0 3.5 -.5 .5 (2) 1938—Sept. 28 64.1 16.8 15.9 6.8 10.7 -.1 .2 6.9 57.2 5.3 .4 .8 .5 Dec. 28 47.6 13.2 12.6 6.8 8.8 -.2 .2 5.3 46.7 2.6 -.9 -1.0 .2 1939-Apr. 26 73.0 17.4 16.3 10.3 10.5 -.1 .3 7.5 62.2 9.1 .7 .6 .4 May 3 74.4 17.8 17.0 10.2 11.2 (i) .2 7. 7 64 0 9.3 .7 —. l . 4 May 10 75.3 17.7 17.0 10.6 11.1 -.2 .2 7.5 63.2 10.5 .9 .2 .5 May 17 73.4 17.7 16.0 10.1 10.6 -.2 .3 7.6 62.2 9.3 .6 .8 .5 May 24 74.2 18.0 16.3 9.7 10.9 -.2 .2 7.5 62.3 9.5 .9 1.1 .4 May 31 72.7 18.0 16.3 9.5 10.8 -.2 .2 7.3 61.9 8.7 .8 1.0 .4 Inflow less than $50,000. « Outflow less than $50,000. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1939 FEDERAL RESERVE BULLETIN 823 [INTERNATIONAL CAPITAL TRANSACTIONS OF THE UNITED STATES—Continued OUTSTANDING SHORT-TERM ACCOUNTS, BY COUNTRIES [Outstanding amounts in millions of dollars] TABLE 8.—SHORT-TERM LIABILITIES TO FOREIGNERS, BY COUNTRIES Date Total U K d n o i i n m t g ed - France N la e e n r t d - h s - S er w la it n z d - m G a e n r- y Italy E O u t r h o e p r e E T u o ro ta p l e Canada A L m a e t r i i n ca E F a a s r t o A th l e l r Reported by Banks in New York City 1929— Dec. 31___ 2, 672. 7 301.5 923.7 99.1 105.2 204.5 157.4 371.3 2,162.8 241.8 188.2 49.0 31.0 1930—Dec. 31___ 2, 335.0 214.5 799.4 122.2 222.2 161.0 111.2 281.3 1,911.7 216.8 130.8 38.2 37.5 1931—Dec. 30___ 1, 303. 5 104.9 549.2 44.6 66.0 41.1 33.2 122.2 961.2 148.3 103.3 69.0 21. 6 1932—Dec. 28___ 745.6 169.7 71.1 11.9 78.0 32.9 39.8 66.2 469.6 98.2 121.7 43.5 12.6 1933—Dec. 27___ 392.0 48.9 27.0 8.0 11.5 17.5 11.7 31.1 155.7 86.1 96.7 42.7 10.9 1934—Nov. 281. 466.7 59.1 32.7 12.7 9.7 25.8 14.3 41.7 196.0 91.9 106.6 60.3 11.9 Reported by Banks in United States 1934—Dec. 5 2... 584.8 79.6 36.1 13.5 12.1 28.4 16.8 40.6 227.1 103.3 117.4 125.1 12.0 1935—Jan. 2 597.0 76.9 33.9 12.9 13.7 29.9 18.8 46.8 232.9 99.3 122.8 130.1 12.0 Dec. 31__. 1,200.2 205.5 163.5 68.6 86.1 29.0 26.1 107.5 686.3 145.3 156.3 188.9 23.4 1936—Dec. 30__. 1,491.6 235.7 176.3 78.8 123.5 32.0 41.7 126.3 814.3 186.1 263.9 200.2 27.1 1937—Dec. 29__. 1, 729. 6 261.5 143.9 89.1 302.1 39.0 25.7 156.0 1,017.1 175.6 280.9 236.0 20.0 1938—Sept. 28.. 1, 732. 4 308.5 165.6 82.2 191.0 17.6 17.2 232.8 1,015.0 190.8 285.0 207.9 33.7 Dec. 28--, 2,003. 9 438.8 190.9 98.4 217 A 19.9 22.6 249.9 1,237.8 235.2 254.9 243.7 32.4 1939—Apr. 26. _. 2, 505. 6 548.9 269.0 154.9 244.2 13.9 13.1 365.3 1, 609. 3 267.0 330.6 251.4 47.3 May 3___. 2, 590. 8 557.0 276.4 153.4 244.5 14.6 12.4 371.2 1, 629. 4 316.9 342.0 256.2 46.3 May 10... 2, 601. 9 561.4 275.7 155.0 245.9 13.7 12. 1 369.5 1, 633.1 315.4 348.9 258.9 45.5 May 17... 2, 614. 0 575.1 271.7 150.1 247.1 14.5 12.3 370.1 1,641.0 313.6 357.3 256.1 46.1 May 24._. 2, 617. 6 580.0 271.6 140.6 241.9 14.0 13.7 373.6 1,635.4 312.7 368.7 251.7 49.1 May 31__. 2, 612. 7 578.0 275.3 137.1 238.4 15.7 14.3 370.5 1, 629. 3 309.4 371.7 253. 8 48.6 TABLE 9—SHORT-TERM FOREIGN ASSETS, BY COUNTRIES Date Total U K d n i o i n t m g ed - France N la e e n r t d - h s - e S r w la i n tz d - m G a e n r- y Italy E O u t r h o e p r e E T u o ro ta p l e Canada A L m a e t r i i n ca E F a a s r t o A th l e l r Reported by Banks in New York City 1931—Dec. 30__ 1,103. 3 166.2 29.5 209 12.6 467.2 18.7 149.2 864.3 I 58.1 136.5 41.8 2.6 1932—Dec. 28. _ 937.9 87.3 62.9 13.0 6.2 434.9 11.8 97.0 713.1 42.2 155.2 24.0 3.5 1933—Dec. 27__ 898.8 192.5 66.9 18.4 12.3 260.9 16.7 83.2 651.0 32.3 159.7 49.7 6.2 1934—Nov. 281 827.1 201.3 94.1 15.9 8.5 178.8 10.7 60.2 569. 5 I 84.4 124.4 46.2 2.6 Reported by Banks in United States 1934—Dec. 5 «„. 1,137. 8 266.4 108.2 19.2 8.3 239.6 26.5 81.3 749.5 91.2 170.7 118.1 8.3 1935—Jan. 2 1,139.9 296.9 80.5 18.6 8.2 231.7 27.2 80.0 743.2 96.3 174.6 117.4 8.5 Dec. 31._. 778.6 88.1 32.5 19.0 6.6 202.0 13.5 71.2 433.0 100.9 154.5 80.1 10.1 1936—Dec. 30__. 672.6 114.1 16.8 21.9 5.4 165.1 10.9 57.8 362.1 59.4 141.1 67.2 12.9 ]937— Dec. 29._. 655.0 84.8 13.5 23.0 5.5 126.1 20.8 52.9 326.5 118.0 114.4 78. 9 17.2 1938—Sept. 28__ 626.9 121.9 11.4 22.6 4.4 99.1 17.0 46.3 322.7 84.0 94.2 113.6 12.4 Dec. 28... 626.0 87.7 13.3 25.5 5.4 90.9 13.3 46.7 282.8 65.7 99.2 162.6 15 7 1939—Apr. 26... 492.3 64.2 11.7 17.9 3.6 79.4 13.5 44.7 235.0 48.0 94.9 103.6 10.9 May 3— 508.0 62.3 11.5 17.9 4.2 78.1 13.1 41.5 228.5 52.2 96.5 117.7 13.1 May 10_. 512.8 66.4 11.5 19.8 4.0 78.2 12.6 41.5 233.9 52.3 95.6 117.7 13.2 May 17._. 506.8 61.1 8.5 19.9 4.4 78.3 11.9 41.8 225.8 51.1 104.9 112.0 13.1 May 24__. 508.1 61. 1 9.8 19.3 3.8 78.2 11.8 42.0 226.1 48.7 109.7 110.3 13.3 May 31.. 504.3 55.4 10.7 18.7 3.4 79.2 11.9 41.1 220.4 49.4 111. 1 110.6 12.8 1 Last report date on old basis. 2 First report date on new basis. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

824 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 CENTRAL BANKS Assets of issue dept. Assets of banking department Liabilities of banking department Bank of England Note (Figures in millions of Cash reserves Dis- circula- Deposits pounds sterling) Gold Other counts Securi- tion Other assets ! and ad- ties liabili- Coin Notes vances Bankers' Public Other ties 1929—Dec 25 145.8 260.0 9 26.3 22.3 84.9 379.6 71 0 8.8 35.8 17 9 1930—Dec. 31 147.6 260.0 .6 38.8 49.0 104.7 368.8 132.4 6.6 36.2 18.0 1931—Dec 30 120.7 275.0 6 31.6 27.3 133.0 364.2 126.4 7.7 40.3 18 0 1932—Dec. 28 119.8 275.0 .8 23.6 18.5 120.1 371.2 102.4 8.9 33.8 18.0 1933—Dec. 27 190.7 260.0 1 0 58.7 16.8 101.4 392.0 101.2 36.5 18.0 1934—Dec 26 192.3 260.0 .5 47.1 7.6 98.2 405.2 89.1 9.9 36.4 18.0 1935—Dec. 25.__ ._ 200.1 260.0 fi 35.5 8.5 94.7 424.5 72.1 U 1 37 1 18.0 1936—Dec 30 313.7 200.0 6 46.3 17.5 155.6 467.4 150.6 12.1 39.2 18.0 1937—Dec. 29 .. 326.4 220.0 ,8 41.1 9.2 135.5 505.3 120.6 11,4 36 6 18.0 1938—Aug. 31 _ 326.4 200.0 1,3 46.0 5.4 124.4 480.4 94.7 27 8 36 4 18.2 Sept 28 326.4 200.0 1 5 25.5 7.3 135.6 500.9 99.9 11.4 40.2 18.2 Oct. 26 326.4 200.0 1.4 43.9 4.2 129.2 482.5 100.4 35. 5 17.7 Nov 30 326.4 200.0 1 ?, 45.6 17.6 110.8 480.8 97.1 23 1 37 ?, 17.8 Dec. 28 . 326.4 230.0 .8 51.7 28.5 90.7 504.7 101.0 15.9 36.8 18.0 1939—jan 25 2 126.4 400.0 7 62.6 18.8 103.9 463.8 118.2 12.9 36.7 18.1 Feb 22 126.4 400.0 1 0 53.7 17.5 100.6 472.7 103.1 16 3 85 1 18.2 Mar. 29 3 226.2 300.0 1.1 44.2 4.8 124.8 482.0 98.5 21.8 36.3 18.2 April 26 226.2 300.0 ,9 37.1 6.2 129.5 489.1 91.4 ?,7 0 37 6 17.7 May 31 . 226.2 300.0 .6 26.4 8.0 140.7 499.8 82.4 38.3 37,1 17.8 June 28 _ - 226.4 300.0 ,7 27.4 6.8 136.7 499.0 101.4 15 4 37.0 17.9 July 26 *246.4 300.0 .6 35.5 8.0 128.0 510.9 91.4 26.0 36.7 18.1 Assets Liabilities Domestic bills Loans on- Deposits Bank of France Ad- For- vances Note Other (Figures in millions of francs) Golds eign to Short- Other circula- liabilich e a x n - ge m O ar p k e e n t6 c S i p a e l - 7 Other G er o n v - - G t o e v r e m rn- s O ec th u e ri r - assets tion G m ov e e n r t n- Other ties ment 8 ment se- ties curities 1929—Dec 27 41,668 25,942 5,612 8,624 2,521 5,603 68, 571 11, 737 7,850 1,812 1930—Dec 26 53, 578 26,179 5,304 8,429 2,901 6,609 76,436 12, 624 11, 698 2,241 1931—Dec. 30 68,863 21, 111 7,157 7,389 2,730 8,545 85, 725 5,898 22,183 1,989 1932—Dec 30 83,017 4,484 6,802 3,438 2,515 9,196 85,028 2,311 20,072 2,041 1933—Dec. 29 77,098 1,158 6,122 4,739 2,921 8,251 82, 613 2,322 13,414 1,940 1934—Dec 28 82,124 963 5,837 3,971 3,211 8,288 83,412 3,718 15, 359 1,907 1935—Dec 27 66, 296 1,328 5,800 9,712 573 3,253 7,879 81,150 2,862 8,716 2,113 1936—Dec. 30 _ _ 60,359 1,460 5,640 1,379 8,465 17,698 715 3,583 8,344 89, 342 2,089 13, 655 2,557 1937—Dec. 30 58, 933 911 5,580 652 10,066 31,909 675 3,781 7,277 93, 837 3,461 19, 326 3,160 1938—Aug. 25 55,808 767 6,098 8,241 40,134 331 3,545 7,364 99,065 2,891 17, 684 2,649 Sept. 29 55, 808 764 6,781 642 20, 293 50,134 1,311 4,362 8,410 124,428 2,825 18, 593 2,660 Oct. 27 55,808 763 6,802 1,550 14, 694 48,134 1,600 3,865 7,427 110, 446 3,642 23, 827 2,727 Nov. 24 .. 87,264 888 7,032 1,611 11,021 20, 627 1,559 3,739 14,185 106, 798 6,169 31, 955 3,004 Dec 29 87, 265 821 7,422 1,797 7,880 20, 627 443 3,612 14,442 110,935 5,061 25, 595 2,718 1939_jan. 26 87, 266 761 8,004 1,996 6,193 20, 627 136 3,389 14,099 109, 378 5,445 24,935 2,713 Feb. 23 87, 266 759 7,801 2,014 5,462 20, 627 73 3,317 14, 308 111, 162 5,079 22, 556 2,830 Mar. 30 87, 266 758 8,631 2,054 5,733 20, 627 172 3,332 14,558 119, 748 3,955 16, 702 2,726 April 27. 92, 266 756 8,609 2,165 6,012 20, 577 127 3,362 14,452 124, 666 3,755 17, 255 2,649 May 25__ 92, 266 754 8,164 2,276 4,774 20, 577 78 3,401 14, 264 121, 391 4,573 17, 570 3,020 June 29 _ 92, 266 722 8,074 2,279 5,009 20, 577 374 3,471 14, 753 122, 611 5,188 16. 909 2,816 July 27 92, 266 722 8,316 2,275 5,000 20, 577 472 3,461 14, 458 123, 239 5,468 16,058 2,781 1 Securities and silver coin held as cover for fiduciary issue. Currency and Bank Notes Act, 1939 (see BULLETIN for April 1939, p. 271), fixed fiduciary issue at £300,000,000 and provided for valuation of gold at current prices instead of legal parity, effective March 1, 1939. For previous status of fiduciary issue see BULLETIN for April 1939, p. 339. 2 On Jan. 6, 1939, £200,000,000 of gold transferred to British Exchange Equalization Account. 3 Effective Mar. 1, 1939, gold valued at current prices instead of legal parity and about £5,500,000 transferred from Exchange Account to Bank. See note 1. 4 On July 12, 1939, £20,000,000 of gold transferred from Exchange account to Bank of England. 6 By decree of Nov. 12, 1938 (see BULLETIN for Jan. 1939, p. 29), gold revalued on basis of 27.50 milligrams gold 0.900 fine per franc; on Nov. 14 increment of nearly 31,500,000,000 francs was applied to partial reimbursement of advances to Government, which stood at authorized maximum of 52,000,000,000 francs on that date. Permanent debt of Government to Bank, included above in Other Assets, was simultaneously increased by 6,800,000,000 francs. For details of revaluations in October 1936 and July 1937 see BULLETIN for Dec. 1938, p. 1091. 6 Negotiable bills of Caisse Autonome and bills bought under authority of decree of June 17, 1938 (see BULLETIN for Aug. 1938, p. 650). 7 Bills and warrants endorsed by National Wheat Board (law of Aug. 15, 1936—see BULLETIN for Oct. 1936, pp. 785-786), and bills rediscounted for account of Banques Populates (law of Aug. 19, 1936—see BULLETIN for Oct. 1936, p. 788). 8 Includes advances granted under authority of Conventions between Bank of France and Treasury of June 18, 1936, June 30, 1937, March 22, 1938, and April 14, 1938, as modified by Convention of Nov. 12, 1938 (see BULLETINS for July 1936, p. 536; Aug. 1937, p. 720; June 1938, p. 452; Aug. 1938, p. 650, and Jan. 1939, p. 30). 9 On April 20, 1939, 5,000,000,000 francs of gold transferred from Stabilization Fund to Bank of France. NOTE.—For further explanation of table see BULLETIN for February 1931, pp. 81-83, and July 1935, p. 463. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1939 FEDERAL RESERVE BULLETIN 825 CENTRAL BANKS—Continued Assets Liabilities Reichsbank Reserves of gold andBills (andl Securities (Figu r r e e i s c h in m m ar i k l s li ) ons of f T o o re t i a g l n exchange i T n ch c re e lu a c d s k u i s n ) r , g y ! j i gp ? lo 0 oa 1 a i n r s i * tv E as li g n i o b t l e e Other a O s t s h e e ts r ci N t r i c o o u n t l e a- Deposits l O ia t t i b h e i s e li r reserves Gold* bills ! cover 1929—Dec. 31 2,687 2,283 2,848 1 251 92 656 5,044 755 736 1930—Dec. 31 _ 2,685 2,216 2,572 256 102 638 4,778 652 822 1931—Dec. 31 1 156 984 4,242 245 161 1,065 4,776 755 1, 338 1932—Dec. 31 920 806 2,806 176 398 1,114 3,560 540 1,313 1933—Dec. 30 .. 396 386 3,226 183 259 322 735 3,645 640 836 1934—Dec. 31 84 79 4,066 146 445 319 827 3,901 984 1,001 1935—Dec. 31 88 82 4, 552 i 84 349 315 853 4,285 1,032 923 1936—Dec. 31 72 66 5,510 74 221 303 765 4,980 1,012 953 1937—Dec. 31 76 71 6,131 60 106 286 861 5,493 1,059 970 1938—Aug. 31 76 71 6,648 35 550 298 1,268 6,869 1, 033 974 Sept. 30 77 71 8,174 : 48 550 298 1,129 8,023 1,231 1,022 Oct. 31 76 71 7,543 32 550 298 1,360 7,754 1,040 1,064 Nov. 30 77 71 7,514 48 548 298 1,494 7,744 1,141 1,093 Dec. 31._ 76 71 8,244 45 557 298 1,621 8,223 1,527 1,091 1939—Jan. 31 76 71 7,160 ' 52 592 298 1,848 7,816 1,119 1,091 Feb. 28 76 71 7,361 60 660 288 1,710 7,939 1,105 1,112 Mar. 31. 77 71 8,180 58 677 292 1,489 8,311 1,249 1,212 Apr. 29 77 71 7,726 55 668 476 1,928 8,519 1,122 1, 289 May 31 77 71 7, 547 '• 40 922 285 2,182 8,525 1,292 1,234 June 30 77 8,159 48 930 274 1,658 8,731 1,281 1,132 July 31 77 8,461 36 925 289 1,652 8,989 1,294 1,157 i Not shown separately on Reichsbank statement after June 15, 1939. NOTE.—For explanation of above table see BULLETIN for February 1931, pp. 81-83, and July 1935, p. 463. Central bank 1939 1938 Central bank 1939 1938 [Figures as of last report [Figures as of last report date of month] July June May July date of month] July June May July National Bank of Albania (thou- National Bank of Belgium (millions sands of francs): of belgas): Gold 7,568 7,564 Gold reserve 3,381 3,187 3,089 2,954 Foreign assets ___._ 21, 365 20, 575 Other gold and foreign exchange 857 742 559 820 Loans and discounts 4,929 5,223 Discounts 188 314 538 343 Other assets 9,576 4,659 Loans 53 48 65 52 Note circulation 19, 093 10, 733 Other assets 469 473 471 454 Other sight liabilities 11,524 14, 916 Note circulation _ _ 4,565 4,442 4,425 4,205 Other liabilities 12, 821 12, 371 Demand deposits—Treasury 8 37 20 16 Central Bank of the Argentine Other 251 161 156 284 Republic (millions of pesos): Other liabilities 124 122 122 119 Gold reported separately _ 1,224 1,224 1,224 Central Bank of Bolivia (thousands Other gold and foreign exchange_ 84 80 100 of bolivianos): Negotiable Government bonds 271 276 89 Gold at home and abroad 54, 491 Other assets 204 199 178 Foreign exchange 76, 524 Note circulation 1 128 1 140 1 084 Loans and discounts 24, 671 Deposits—Member bank 428 391 320 Securities—Government 397, 275 Government 143 169 126 Other 4,094 Other 2 2 2 Other assets 20, 839 Foreign exchange sold forward. __ 32 29 9 Note circulation 270, 992 Other liabilities 51 47 49 Deposits 243, 472 Commonwealth Bank of Australia Other liabilities 63, 430 (thousands of pounds): National Bank of Bulgaria (mil- Issue department: lions of leva): Gold and English sterling 16, 030 16, 030 16,011 Gold 2,006 2,006 1,994 Securities 40 504 40, 505 38 301 Foreign exchange 757 774 846 Banking department: Loans and discounts 975 1,023 917 Coin, bullion, and cash 1 397 1,564 1,283 Government debt _ _ _ 3,417 3,441 3,468 London balances 19 075 16 702 25 223 Other assets 1,310 1,292 1,297 Loans and discounts 16 582 17 285 13 822 Note circulation _. _ ___ _ 2,891 2,931 2,489 Securities 52 756 53 929 50 736 Deposits 3,239 3,427 3,750 Deposits 84 231 83' 852 85 636 Other liabilities 2,336 2,178 2,284 Note circulation 47 530 47 530 49 030 Bank of Canada (thousands of Ca- Bank of Belgian Congo (millions of nadian dollars): Belgian francs): Gold 205,159 205, 736 205, 639 180, 415 Gold 166 166 Sterling and United States ex- Loans and discounts 394 337 change _ _ 43, 960 33, 652 34, 599 23, 461 Other assets _ _ ___ 566 626 Canadian Gov't securities: Note circulation 381 380 2 years or less 112,550 110, 773 114, 032 116, 318 Deposits 604 627 Over 2 years. ___ _ _ 51,391 51, 192 52, 714 52, 612 Other liabilities 142 122 Other assets___ _ __ 6,970 6,327 4,674 9,240 Note circulation __ _ 169, 714 165, 922 166, 227 156, 796 Deposits-Chartered banks. _ _206, 916 204, 082 205, 352 187, 534 Dominion Government 29, 054 21, 891 24, 217 15, 233 Other 4,649 4,673 6,373 2,769 Other liabilities 9,698 11,112 9,489 19, 714 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

826 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 CENTRAL BANKS—Continued Central bank 1939 1938 Central bank 1939 1938 [Figures as of last report [Figures as of last report date of month] July June May July date of month] July June May July Central Bank of Chile (millions of Central Reserve Bank of El Salvador (thousands of colones): Gold 146 145 145 Gold 13, 208 13, 207 13, 206 Discounts for member banks 35 62 5 Foreign exchange 6,479 6,872 4,190 Loans to government 754 758 771 Loans and discounts 709 567 808 Other loans and discounts 269 261 136 Government debt and securities.. 5,132 5,154 5,525 Other assets 35 54 39 Other assets 990 961 846 Note circulation 864 709 Note circulation 14, 669 14, 903 13,611 Deposits- Deposits 8,233 8,201 6,406 Bank 123 114 Other liabilities 3,616 3,657 4,558 Other 105 146 61 Bank of Estonia (thousands of Other liabilities 144 156 138 I krooni): Bank of the Republic of Colombia Gold s 40, 892 40,889 34, 265 (thousands of pesos): I Foreign exchange (net) 8,910 15, 691 16, 389 Gold 36,109 35,853 35, 548 36, 757 Loans and discounts 27, 059 28, 625 22,061 Foreign exchange 3,865 5,999 6,689 5,346 Other assets 44, 507 34, 853 30, 491 Loans and discounts 18, 455 19, 855 18, 513 18, 082 Note circulation 51,116 52, 747 47, 897 Government loans and securities. 36, 820 36, 948 37,033 46, 593 Demand deposits 30, 622 38, 826 33, 865 Other assets 30, 337 30,019 29,861 Other liabilities 39, 631 28, 485 21, 443 Note circulation 55, 365 57, 364 54, 336 52, 652 Bank of Finland (millions of mark- Deposits 38, 547 38, 204 38, 780 37, 757 kaa): Other liabilities 31, 674 33,105 34, 529 43, 059 Gold * 1,128 1,128 1,128 621 National Bank of Czecho-Slovakia 1 Foreign assets 2,598 2,640 2,517 2,209 (millions of koruny): Loans and discounts 1,151 1,244 1,293 1,546 Gold 1,721 1,763 1,854 2,653 Domestic securities 333 331 327 239 Foreign exchange 821 771 812 246 Other assets 248 142 135 305 Discounts 1,713 2,129 2,140 2,194 Note circulation 2,179 2,200 2,226 2,047 Loans 875 919 901 1,236 Deposits—Treasury 217 90 68 71 Government debt 2,006 Other 991 1,088 959 1,178 Other assets 4,187 3,716 3,519 1,126 Other liabilities 2,070 2,106 2,147 1,624 Note circulation 6,391 6,418 6,291 7,641 Bank of Greece (millions of drach- Demand deposits 811 839 259 mas): Other liabilities 2,116 2,041 2,271 1,560 Gold and foreign exchange (net)__ 3,565 3,711 3,108 Bank of Danzig (thousands of Loans and discounts 10, 570 10,141 7,133 gulden): Government obligations 4,257 4,256 4,285 Gold 23, 612 24, 442 25, 324 28, 965 Other assets 1,860 1,970 2,205 Foreign exchange of the reserve- 1,199 1,480 2,318 5,347 Note circulation 8,002 8,195 6,551 Other foreign exchange 166 212 352 581 Deposits 10, 543 10, 202 7,647 Loans and discounts 20, 525 21,613 18, 699 16, 270 Other liabilities 1,706 1,681 2,534 Other assets 2,572 2,890 3,090 2,886 National Bank of Hungary (mil- Note circulation 48, 614 46, 821 47, 672 38, 554 lions of pengo): Demand deposits 17,179 20, 034 16, 313 18, 473 Gold 6 124 124 124 84 Other liabilities 19,010 19, 389 19, 265 19, 016 Foreign exchange reserve 93 94 95 74 National Bank of Denmark (mil- Discounts 418 438 459 391 lions of kroner): Loans—To Treasury 298 327 299 148 Gold 117 118 118 Other 29 12 . 12 14 Foreign exchange 98 93 95 Other assets 360 366 357 319 Discounts 19 20 20 Note circulation 879 885 868 582 Loans—To Government agencies 130 69 117 Demand deposits 143 178 192 180 Other 138 155 147 82 Certificates of indebtedness 99 99 70 Securities 186 180 187 113 Other liabilities 199 187 198 Other assets 110 109 103 105 Reserve Bank of India (millions of Note circulation 425 446 435 403 rupees): Deposits 135 166 108 80 Issue department: Other liabilities 199 197 194 167 Gold at home and abroad 444 444 444 Central Bank of Ecuador (thou- Sterling securities 595 595 695 sands of sucres): Indian Gov't. securities 374 373 324 Gold 37, 600 32, 413 Rupee coin 695 662 671 Foreign exchange (net) 7,035 5,103 Note circulation 1,846 1,878 ,715 Loans and discounts 51, 333 "56, 601 Banking department: Other assets 16, 772 19,129 Notes of issue department._. 262 196 418 Note circulation 63, 784 63, 352 Balances abroad 85 101 35 Demand deposits 34,845 34, 630 Treasury bills discounted 3 2 Other liabilities 14,111 15, 444 Loans to Government 7 6 National Bank of Egypt2 (thou- Investments 73 69 63 sands of pounds): Other assets 12 11 11 Gold 6,545 6,545 6,545 Deposits 329 276 414 Foreign exchange 2,095 1,759 1,459 Other liabilities 111 110 113 Loans and discounts 5,657 5,961 4,355 Bank of Japan (millions of yen): British, Egyptian, and other Gold 501 501 501 Government securities 25,196 25, 471 31, 454 Special foreign exchange fund 300 300 300 Other assets 8,401 7,667 6,961 Discounts 428 401 461 Note circulation 20, 712 21,139 18, 492 Loans—Government 3 3 3 Deposits—Government 3,261 2,883 5,972 Other 51 45 56 Other 15, 468 15,153 17,615 Government bonds 1,776 1,668 1,213 Other liabilities 8,454 8,229 8,695 Other assets 414 334 198 Note circulation 2,342 2,137 2,043 Deposits—Government 535 610 275 Other 238 205 97 Other liabilities 358 300 317 r Revised. 1 Name changed to National Bank of Bohemia and Moravia, Prague, by decree of March 31, 1939. 2 Items for issue and banking departments consolidated. 3 Gold revalued in part on March 7, 1939 at .2801 gram fine gold per kroon. 4 In accordance with law of December 22,1938, gold revalued on December 31,1938, at approximately .02 gram fine gold per markka. 5 In accordance with law XXV of 1938 gold revalued on January 15, 1939, at .1754 gram fine gold per pengo and resulting increment included in other assets. 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SEPTEMBER 1939 FEDERAL RESERVE BULLETIN 827 CENTRAL BANKS—Continued Centra] bank 1939 1938 Central bank 1939 1938 [Figures as of last report [Figures as of last report date of month] July June May July date of month] July June May July Bank of Java (millions of guilders): Bank of Portugal (millions of Gold 117 117 117 escudos): Foreign bills 15 11 3 Gold 920 920 918 Loans and discounts _____ _ _ 61 66 64 Other reserves (net) __ _ _. 462 498 472 Other assets 97 102 101 Non-reserve exchange 200 178 150 Note circulation _ 195 192 189 Loans and discounts 419 433 392 Deposits 72 78 71 Government debt 1,036 1,036 1,040 Other liabilities 25 26 25 Other assets . 1,218 1,221 1,251 Bank of Latvia (millions of lats): Note circulation _ _ _ __ 2,096 2,104 2,016 Gold 98 93 93 78 Other sight liabilities 1,169 1,195 1,189 Foreign exchange reserve.. 36 40 40 39 Other liabilities 990 986 1,016 Loans and discounts 143 147 154 126 National Bank of Rumania (mil- Other assets. _ ._ . 51 53 51 64 lions of lei): Note circulation 81 84 88 61 Gold - . 18, 756 18, 662 16,911 Deposits __ _ _ _ 204 208 211 197 Special exchange accounts 4,422 4,174 4,009 Other liabilities 43 40 38 48 Loans and discounts 13,615 14,128 7,680 Bank of Lithuania (millions of litu): Special loans 3_ ._ _ _ __ __ 1,534 1,577 1,912 Gold 62 62 62 79 Government debt 10,169 10, 247 10, 396 Foreign exchange 8 9 6 6 Other assets. _ __ _ _. 12, 662 12, 786 11, 224 Loans and discounts 119 120 128 100 Note circulation 38,683 38, 948 29, 659 Other assets 37 37 36 32 Demand deposits... _ _ _ 10, 524 10, 614 12, 690 Note circulation 153 156 168 123 Other liabilities 11 951 12,013 9,783 Deposits 42 42 35 72 South African Reserve Bank (thou- Other liabilities _ 30 31 29 23 sands of pounds): Netherlands Bank (millions of guil- Gold. ___ 26, 638 26, 428 23, 049 ders) : Foreign bills 7,666 8,030 6, 480 Gold.. ._ _ . 1,129 1,175 1,209 1,481 Other bills and loans. 813 16 1,928 Silver (including subsidiary coin) 24 22 17 20 Other assets 16, 541 14, 621 13,234 Foreign bills 2 2 3 5 Note circulation 19,156 17, 694 18,099 Discounts 10 10 12 8 Deposits 28 651 28, 283 22,413 Loans. 224 214 212 323 Other liabilities .... __ 3,850 3,118 4,179 Other assets.__ ___ 69 68 71 64 Bank of Sweden (millions of Note circulation 1,037 998 1,046 919 kronor): Deposits—Government 46 27 30 176 Gold 767 762 759 616 Other 327 420 397 761 Foreign assets. _ 627 646 659 860 Other liabilities 48 46 50 45 Discounts 11 13 13 12 Reserve Bank of New Zealand Loans __ 59 57 56 23 (thousands of pounds): Domestic securities 166 156 151 60 Gold 2,802 2,802 2,802 Other assets 520 515 504 381 Sterling exchange reserve... 5,601 4,564 15,106 Note circulation. _ __ 1,025 1,059 1,012 950 Advances to State or State un- Demand deposits 963 926 973 839 dertakings. _ 16,926 19, 517 6,066 Other liabilities 163 164 157 163 Investments 3,768 3,771 2,732 Swiss National Bank (millions of Other assets. 415 364 293 francs): Note circulation 15 467 15 572 13 564 Gold 2 461 2 471 2 471 2 786 Demand deposits 12,123 13,562 11,801 Foreign exchange. _ ... 274 271 266 385 Other liabilities 1,922 1,884 1,634 Discounts 49 66 65 12 Bank of Norway (millions of Loans.. __ _ 27 31 33 20 kroner): Other assets 682 681 682 697 Gold 236 236 236 222 Note circulation. _ _ 1,741 1,729 1,737 1, 541 Foreign assets 151 157 164 210 Other sight liabilities 1,106 1,147 1,137 1,723 Total domestic credits and Other liabilities 647 644 643 637 securities 282 270 202 Central Bank of the Republic of Discounts 0) 112 111 76 Turkey (thousands of pounds): Loans 37 38 29 Gold 36,906 36, 906 36, 884 36, 867 Securities. (0 123 121 96 Foreign exchange—Free. _ __ 2 11 1 27 Other assets 0) 60 55 40 In clearing accounts 3,536 4,135 11,199 10, 276 Note circulation 480 475 458 456 Loans and discounts __ __ __145, 754 140, 915 131, 223 67, 450 Demand deposits—Government- 15 37 76 37 Securities.._ _ 192,732 192, 880 192, 792 190, 001 Other 139 121 111 97 Other assets 38, 340 35, 450 32, 884 30, 016 Other liabilities (I) 92 81 84 Note circulation 229, 521 229, 521 229, 697 175,691 Central Reserve Bank of Peru Deposits _ _ 71, 426 61, 509 52, 305 56, 316 (thousands of soles): Other liabilities 116, 325 119, 267 122, 981 102, 631 Gold and foreign exchange 49, 028 Bank of the Republic of Uruguay Discounts 26, 768 (thousands of pesos): Government loans 79, 932 Issue department: Other assets 4,492 Gold and silver 86, 235 103, 585 Note circulation 100, 286 Note circulation 89, 670 87,156 Deposits 45, 065 Banking department: Other liabilities 14, 869 Gold 20, 285 1,835 Bank of Poland (millions of zlotys): Other ___ ___ 50, 553 50, 567 Gold 444 444 443 447 Loans and discounts 103, 626 98, 850 Foreign exchange 11 15 14 12 Other assets _ 96,911 69,816 Loans and discounts 886 824 818 756 Deposits 85, 442 83, 674 Securities 161 157 153 128 Other liabilities 185, 933 137, 393 Special gov't. debts 515 515 515 National Bank of the Kingdom of Other assets.. __ 350 377 382 399 Yugoslavia (millions of dinars): Note circulation 1,883 1,848 1,841 1,123 Gold.— _ 1,922 1,920 1,918 1,837 Other sight liabilities _ 152 159 160 264 Foreign exchange. _ 503 507 525 361 Other liabilities 332 326 325 355 Loans and discounts 1,860 1,825 1,835 1,574 Government debt __ _ 2,230 2,230 2,230 2,241 Other assets 3,273 3,156 3,160 3,210 Note circulation __ _ _ 7,354 7,177 7,298 6,142 Other sight liabilities.. 1,712 1,724 1,624 2,256 Other liabilities 721 736 747 826 r Revised. 1 Figures not yet available. 2 Not reported separately on bank statement; included with loans and discounts. 3 Agricultural and urban loans in process of liquidation. 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828 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 BANK FOR INTERNATIONAL SETTLEMENTS [In thousands of Swiss gold francs *] 1939 1938 1939 1938 Assets Liabilities July 31 June 30 July 31 July 31 June 30 July 31 Gold in bars 55, 807 62, 564 27, 384 "Demand deposits (gold) 14,355 13, 277 9,206 Cash on hand and on current account with banks 17, 218 23,162 34, 920 Short-term deposits (various curren- Sight funds at interest... 17, 603 22, 386 16, 481 cies): Central banks for own account 114, 718 122, 065 158, 889 Rediscountable bills and acceptances Other 3,558 4,444 4,977 (at cost) 228,082 «225, 434 222, 243 Time funds at interest __ 35, 309 33, 015 55, 845 Long-term deposits: Special accounts 255,122 255,122 256, 465 Sundry bills and investments _ 220, 824 221,130 258, 582 Other liabilities 188, 417 194, 381 186, 830 Other assets .__ 1,327 1,598 911 Total liabilities 576,169 589, 289 616, 367 Total assets __ 576,169 589, 289 616, 367 c Corrected. i See BULLETIN for December 1936, p. 1025. MONEY RATES IN FOREIGN COUNTRIES [Per cent per annum] United Kingdom (London) Germany (Berlin) Netherla d n a d m s ) (Amster- Month ac 3 B c a m e n p o k t n a e n t r h c s s e ' s T m b re i o l a l n s s t , u h 3 r s y Da m y o -t n o e - y day o a B n ll a o d n w e k p a e o n r s c s i e ' ts d P is r r c i a v o te a u t n e t M 1 o m ne o y n t f h or Da m y o -t n o e - y day d P is r r c i a v o t a e u t n e t M 1 o m n o ey n t f h or 1929—July 5.38 5.39 4.54 7.39 9.35 8.21 5.20 4.90 1930—July 2.37 2.38 1.78 3.40 4.57 4.30 1.85 1.85 1931—July 2.58 2.44 2.05 17.00 i1 8I.98 11 8i.89 1.53 1.40 1932—July .92 .66 .67 4.58 5.75 5.49 .49 1.00 1933—July .48 .40 .62 3.87 5.50 5.19 3.54 2.64 1934—July .87 .76 .85 3.75 4.44 4.67 .74 1.00 1935—July .65 .59 .75 3.00 2.97 3.10 3.25 2.77 1936—July...... .58 .58 .75 2.88 2.73 2.96 2.01 1.73 1937—July .56 .53 .79 2.88 2.65 2.64 .13 .92 1938—July .55 .52 .75 2.93 2.88 2.96 .13 .50 1939—January.. .55 .53 .75 2.88 2.88 2.46 .13 .50 February. .53 .51 .75 2.88 2. 88 2.53 .13 .50 March.... .63 .70 .75 2.88 2.88 2.70 .29 .50 April 1.40 1.36 .76 2.88 2.88 2.36 1.11 1.24 May .73 .70 .75 2.77 2.53 2.46 .72 .80 June .79 .77 .77 2.79 2.50 2.71 .49 .75 July .79 .77 .75 2.75 2.50 2.65 .51 .75 Sw la it n z d er- ( B B e ru lg s i s u e m ls) F (P r a a r n i c s e ) (M It i a l l a y n) Hungary S ( h w S o t e o lm d c e k ) n - Japan (Tokyo) Month d P is r r i c a v o t a e u t n e t d P is r r c i 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 c i a v o t a e u t n e t c c i o a P l m r i p m m ap e 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 rn a n l i e l g y ht 1929—June.. 3.26 3.97 3.50 6.75 5. 48-5. 66 3.29 1930—June. 2.06 2.78 2.11 5.50 5^-8 5.48 3.83 1931—June. 1.12 2.13 1.06 5.25 5^-8 M6H 3-5 5. 29-5. 48 2.19 1932—June. 1.50 3.16 1.22 5.50 4-4^ '4-6 6.02-6. 57 4.56 1933—June _ 1.50 2.31 1.50 4.00 5.11-5. 48 2.74 1934—June. 1.50 2.11 2.09 3.00 5.20 2.44 1935—June. 2.60 1.88 5.72 3.50 5.11 2.45 1936—June. 2.25 1.38 5.60 4.50 4.83 2.63 1937—June. 1.00 1.00 5.02 5.00 4.75 2.80 1938—June. 1.00 3.25 2.40 5.00 4.56 2.37 1938—December,. 1.00 2.21 2.23 5.00 4.56 2.37 1939—January... 1.00 2.00 1.88 5.00 VA 4.47 2.34 February.. 1.00 1.98 1.96 5.00 VA 23^-5 4.47 2.56 March 1.00 3.28 1.94 5.00 234-5 4.47 2.54 April 1.00 4.28 1.88 5.00 234-5 4.47 2.47 May 1.00 3.99 1.94 5.00 4.47 2.37 June 1.00 2.79 1.88 5.00 4.47 2.39 r Revised. 1 Based on data for part of month, no quotations being available for remainder of month. NOTE.—For explanation of table see BULLETIN for November 1926, pp. 794-796; April 1927, p. 289; July 1929, p. 503; November 1929, p. 736; May 1930, p. 318; and September 1938, p. 757. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1939 FEDEKAL KESEKVE BULLETIN 829 DISCOUNT RATES OF CENTRAL RANKS [Per cent per annum] Central bank of— Central Rate Date Central Rate Date Date effective U K d n i o i n t m g ed - France m G a e n r y - g B iu e m l- N la e e n r t d - h s - S l w a e n i r t d z- Japan bank of— A 2 u 9 g. effective bank of— A 2 u 9 g. effective In effect June 30, Albania 6 April 1, 1937 Japan. 3.29 Apr. 7, 1936 1936 2 4 4 2 2H 3.29 Argentina.. &A Mar. 1, 1936 Java 3 Jan. 14, 1937 July 7 3 Belgium Wi July 6, 1939 Latvia 43^ Jan. 1, 1939 July 10 3 Bolivia 6 July 5, 1932 Lithuania... 6 July 15, 1939 Sept. 9 2 Britishlndia 3 Nov. 28, 1935 Mexico . . 3 Mar. 1, 1937 Sept. 25 5 Bulgaria 6 Aug. 15, 1935 Netherlands 3 Aug. 29, 1939 Oct. 2 3 Canada 2^ Mar. 11, 1935 New Zea- Oct. 9 Chile 3-4^ Dec. 16, 1936 land 4 Nov. 19, 1938 Oct. 16 2 Colombia__. 4 July 18, 1933 Norway w* Jan. 5, 1938 Oct 20 2K Czecho- Peru May 20, 1932 J J J N D a u u e o n n l c . v y e . 2 7 3 1 2 8 5 6 , 1937 4 6 5 2 Wi D E D El c a e S u n n S l a z o m a d i v l g o v a a r k a rk d ia o ,. r . 3 4 3 3 H J J N M F a a e o n n a b v . . . r . . 3 2 3 0 1 2 0 3 , , , , , 1 1 1 1 1 9 9 9 9 9 3 3 3 3 3 2 7 6 9 9 P P R S S o o p o u r a l u m a t i t u n n h a g d n A a i l a frica ± 6 y 5 - A A A J M D M u e u a a l c y g y y . . 1 1 1 1 5 5 5 1 8 , , , , , 1 1 1 1 1 9 9 9 9 9 3 3 3 3 3 8 5 3 7 7 Aug 4 4 Estonia 4^ Oct. 1, 1935 Sweden __ _ 2A Dec. 1, 1933 N M M S M S e e o a a a p p v y y y t t . 3 1 1 1 3 2 0 3 0 3 8 , 1938 & 3 3 2H A 4 3 I F F H G G t r i a r u e n a e l r n n y l e m a g c c n e a e a d r n y y. __ 4 4 2 6 4 4K J D J A S M a a e e u n n a c p g . . y . t . . 2 1 2 4 4 9 8 3 2 , , , , , , 1 1 1 1 1 1 9 9 9 9 9 9 3 3 3 3 3 3 9 7 5 2 6 4 T U Y S U w u . u n d r g i i S o t t k o m . e z e s d e S l y r . a K l . a v R i n i n a d . g _ .. - . 4 4 4 5 VA J A J N F u u e u o l l b y y g v . . . 2 2 6 1 1 1 4 , , , , , 1 1 1 1 1 9 9 9 9 9 3 3 3 3 3 6 8 9 5 6 Oct 27 2K J A N a p o n r v . 4 1 2 , 7 5 1939 2 2K 4 Un C i h te a d n g K es i n s g i d nc o e m J — ul A y u 2 g 4 . : 2 N 4 e , t u h p e r f l r a o n m d s 2 — to A t u o g . 4 2 p 9 e , r u c p e f n r t o . m 2 to 3 per cent; May 11 3 July 6 2H Aug. 24 4 Aug 29 3 In effect Aug. 29, 1939 4 2 4 3 3.29 COMMERCIAL BANKS [Figures as of end of month, except those for United Kingdom, which are averages of weekly figures] Liabilities (Figures in U m n i i l t l e io d n s K o i f n p g o d u o n m ds sterling) re C se a r s v h es M c n a o s l o h n l t o e a ic y r n t e d at B co il u ls n t d e i d s- Se ti c e u s ri- L c o u a s e t n r o s s m to - O as t s h e e ts r Total D D e e m po a s n i d ts i Time l lia O b t i h l e it r ies 10 London clearing banks 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 1935— December. 221 159 322 605 784 231 2,091 1,140 924 231 1936—December. 236 187 316 630 864 238 2,238 232 1937—December. 236 155 295 605 954 242 2,250 237 1938—December. 235 150 244 606 940 250 2,172 254 11 London clearing banks 2 1936—December. 244 195 322 660 890 249 2,315 1,288 1,012 245 1937—December. 244 163 300 635 256 2,330 1,284 1,026 252 1938—June 247 154 630 251 2,299 1,245 1,054 256 July 244 159 302 633 985 242 2,309 1,254 1,055 256 August...,. 241 153 305 642 974 239 2,298 1,248 1,050 256 September. 234 148 289 646 973 242 1,236 1,033 262 October. __ 234 149 268 645 973 256 2,256 1,247 1,009 270 November. 233 149 272 642 966 255 2,249 1,244 1,004 December. 243 160 250 635 971 2,254 1,256 997 1939—January... 248 143 256 625 972 252 2,230 1,260 970 267 February.. 243 138 212 617 982 253 2,176 1,213 964 268 March 232 141 190 611 992 249 2,152 1,186 966 264 April . 229 145 184 611 997 256 2,155 1,185 970 267 May 236 144 201 605 992 258 2,167 1,194 973 268 June 235 150 249 600 993 257 2,219 265 July 235 155 597 251 2,240 263 1 Through December 1937 excludes deposits in offices outside England and Wales, which are included in total. Figures for 10 banks not available beginning 1936. 2 District Bank included beginning in 1936. NOTE.—For other back figures and explanation of tables see BULLETIN for October 1933, pp. 639-640. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

830 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 COMMERCIAL BANKS—Continued [Figures as of end of month] Assets Liabilities (4 large banks. fr F a i n g c u s r ) es in millions of re C se a r s v h es D b u a e n f k ro s m B co il u ls n t d e i d s- Loans O as t s h e e ts r Total D D e e p m o a s n it d s Time Ii a c O n c w c e e p n s t- lia O b t i h li e t r ies 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 1,8?7 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 2,484 16,141 8,025 900 27.553 26,859 694 337 4,399 1936—December 3,100 2,975 17, 582 7,631 957 28,484 27,955 629 473 4,289 1937—December 3,403 4,116 18, 249 7,624 %134 30,348 29, 748 600 661 4,517 1938—July _ 3,297 3,962 21, 620 7,314 653 33,184 32, 701 483 566 4,096 August 3,270 4,708 19,828 7,490 70? 32,293 31, 784 508 550 4,155 September _ 4,410 4,237 14,080 8,072 921 27,869 27,405 463 678 4,174 October __ _ 3,152 4,238 18,940 7,613 2,088 30,952 30,449 503 775 4,304 November 3,357 4,318 18,522 7,956 1,976 30,971 30.460 511 746 4,411 December 3,756 4,060 21, 435 7,592 1,940 33. 578 3.042 537 721 4,484 1939—January _ _ 3,329 3,985 22,100 7,079 1,339 33.444 32,863 581 643 3,745 February _ 3,433 3,824 23,024 6,927 1,250 34. 243 33, 619 624 538 3,677 March 3,604 3,519 23, 945 6,654 1,310 34.793 34,127 667 541 3,697 April . .. 3,522 3,745 25, 667 6,414 1,353 36, 368 35, 700 667 558 3,775 Mayp.__ _ 5,143 3,767 24, 874 7,056 1,411 37, 883 37, 223 660 522 3,846 Assets Liabilities Germany * (5 large B l e io rl n in s o b f a r n e k ic s. 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 os a i n t d s Time o C b b f r t a r e a o n d i m k n i s t 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 1936—November 137 269 2,567 2,729 •1,112 851 5,751 2,661 3,090 579 1,334 1937—November __ __ 148 299 3, 205 2,628 1,020 812 6,264 2,912 3,352 513 1,335 1938—August ._ 199 255 3,589 2,731 1,098 844 6,933 3,219 3,714 416 1,368 September 270 295 3,384 2,817 1,097 876 6,915 3,311 3,603 424 1,400 October 179 261 3,620 2,743 1,183 895 7,031 3,373 3, 658 422 1,427 November 195 270 3,643 2,685 1,406 893 7,234 3,531 3,703 420 1,438 1939—January 184 285 3,934 2,708 1,178 895 7,334 3,619 3,716 414 1,436 February 175 307 3,888 2,798 1,145 902 7,377 3,576 3,801 410 1,427 March . .. 219 308 3,904 2,833 1,112 901 7,458 3,693 3,765 401 1,418 April _ 189 271 4,364 2,761 1,082 891 7,745 3,870 3,875 398 1,414 May 237 292 4,537 2,772 1,073 852 7,981 3,996 3,985 396 1,385 June _ 214 306 4,108 2,988 1,080 829 7,793 3,793 3,999 390 1,342 Assets Liabilities Canada Entirely in Canada S l e o c a u n r s ity D ad e a p o e s x it c s l d u p e d a p i y n o a g s b it l s i e n i t n e rb C a a n n k abroad (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 ll e a s r s i ) n mil- Other an d d u e net Se t c ie u s ri- O as t s h e e ts r ci t r i c o u n la- lia ti b e i s lire C se a r s v h es S l e o c a u n r s ity an lo d a d n i s s- fo fr r o ei m gn 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 1936—December 240 114 791 161 1,384 507 103 2,303 755 1,548 790 1937—December 255 76 862 102 1,411 510 96 2,335 752 1,583 785 1938—August __ 262 71 913 137 1,440 459 93 2,418 783 1,635 771 September 270 60 965 150 1,421 481 99 2,447 814 1,633 802 October 291 66 986 147 1,409 470 94 2,480 824 1,656 795 November 277 64 970 192 1,426 471 92 2,499 844 1,655 808 December 263 65 940 166 1,463 474 88 2,500 840 1,660 782 1939—January 276 63 919 167 1,454 459 85 2,457 789 1,667 796 February 267 60 921 171 1,490 450 88 2,471 780 1,691 800 March 259 56 943 192 1,499 458 93 2,492 791 1,700 821 April. . .. 260 54 956 203 1,509 449 90 2, 509 812 1,697 833 May 266 55 963 217 1,505 452 85 2,524 846 1,678 850 June 255 53 957 226 1,525 494 92 2,542 862 1,680 875 p Preliminary. i Combined monthly balance sheets not published for December. Prior to merger of two of the banks in February 1932 figures refer to six large Berlin banks. Beginning in 1935 figures are not entirely comparable with those shown for previous years due to changes in reporting practice (See BULLETIN for June 1935, p. 389). NOTE.—For other back figures and explanation of table see BULLETIN for October 1933, pp. 641-646, June 1935, pp. 388-390, and August 1939, p. 699. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1939 FEDERAL RESERVE BULLETIN 831 FOREIGN EXCHANGE RATES [Average of noon buying rates for cable transfers in New York. In cents per unit of foreign currency] Year or month A (p t r i e g n s e a o n ) - ( t p A r o a u u l s i n - a d) ( g b B i e u e lg m l- a) O B f r fi a c z ia il l (m m il F a r r e r e i k s e e ) t] ( B I r r u n i p d t e i i s a e h ) g B ( a le u r v i l a - ) C (d a o n ll a a d r a ) Off C ic h ia il l e (p E e x so p ) ort S ( C y h h h u a a i a i n n ) n g a - - C (p o b e l i o s a o m ) - ( C pe u s b o a ) 1929 95.127 480. 83 13. 912 11. 8072 36. 202 .7216 99. 247 12. 0601 41. 901 96. 551 99. 965 1930 83. 505 458. 60 13. 952 10. 7136 36.067 .7209 99. 842 12.0785 29. 917 96. 493 99. 952 1931 66. 738 351. 50 13. 929 7. 0290 33. 690 . 7163 96. 326 12. 0669 22. 437 96. 570 99. 930 1932 58. 443 279. 93 13.914 7.1223 26. 347 .7193 88.090 7. 9079 21. 736 95. 275 99. 941 1933 72. 801 337. 07 17. 900 7. 9630 31.816 1. 0039 91. 959 7. 6787 28. 598 81. 697 1934 33. 579 400. 95 23. 287 8. 4268 37. 879 1. 2852 101.006 10. 1452 34.094 61. 780 1935 32. 659 388. 86 18. 424 8. 2947 36. 964 1. 2951 99. 493 5. 0833 36. 571 56.011 99. 920 1936 33.137 395. 94 16. 917 8. 5681 5. 875 37. 523 1. 2958 99. 913 5.1240 29. 751 57. 083 99. 909 1937 32. 959 393. 94 16. 876 8. 7190 37. 326 1. 2846 100. 004 5.1697 4. 0000 29. 606 56. 726 99. 916 1938 32.597 389. 55 16. 894 5. 8438 36. 592 1. 2424 99. 419 5.1716 4. 0000 21. 360 55. 953 99. 925 1938—November _. 31. 382 375.05 16. 908 5. 8595 35.151 1. 2325 99. 248 5.1777 4. 0000 15. 796 57.136 December.. 31.135 372. 06 16. 843 5. 8646 34. 860 1. 2326 99. 064 5.1758 4. 0000 16.110 57.001 99. 931 1939—January 31.126 372. 06 16. 893 5. 8598 34. 881 1. 2156 99.194 5.1739 4. 0000 16. 256 57. 055 99. 932 February... 31. 236 373. 33 16. 860 5. 8602 35.014 1. 2130 99. 502 5.1736 4. 0000 15. 885 56. 990 99. 933 March 31. 234 373. 27 16. 823 5. 8647 35. 057 1. 2103 99. 583 5.1733 4. 0000 16.016 56. 983 99. 932 April 31. 207 372. 86 16. 838 5. 8595 34. 962 1. 2089 99. 483 5.1735 4. 0000 16.015 56. 982 99. 936 May 31. 210 372. 89 17. 016 34. 916 1.2101 99. 620 5.1733 4. 0000 15. 987 57.009 99. 942 June 31.217 373.12 17. 008 6. 0585 5. 1038 34. 924 1. 2077 99. 773 5.1737 4. 0000 13. 434 57.169 99. 949 July 31.211 373. 03 16. 991 6. 0571 5. 0555 34. 905 1. 2126 99. 835 5.1703 4. 0000 10.637 57. 036 99. 950 Year or month ( C S k l z o o e r v c u a h n k o a i ) a ( m D k a e ro r n n k - e)(p Eg o y u p n t d) ( k l F m a k i a n n a r d - ) - F ( r fr a a n n c c e ) ( m m G r a a e e r i r n c k - y h ) s- G ( r d m e r a e a ) c c h e - ( H d K o o o l n n la g g r) ( H p g e u a n r n g y - o) ( I l t i a r l a y ) J ( a y p e a n n ) M ( e p x e i s c o o ) ( N g l u e a t i n l h d d e e s r r - ) Z (p e N a o e l u a w n n d d ) 1929 2. 9609 26. 680 498. 07 2. 5160 3. 9161 23. 809 1. 2934 47.167 17. 441 5. 2334 46.100 48.183 40.162 483. 21 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. 225 468. 22 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. 230 415. 29 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. 295 320. 19 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. 721 340. 00 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. 383 402. 46 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. 715 391. 26 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. 481 398. 92 1937 3. 4930 22.069 506. 92 2.1811 4.0460 40. 204 .9055 30. 694 19. 779 5. 2607 28. 791 27. 750 55. 045 396. 91 1938 3. 4674 21. 825 501. 30 2.1567 2. 8781 40.164 .8958 30. 457 19. 727 5. 2605 28. 451 22.122 55. 009 392. 35 1938—November. 3. 4264 21.011 482. 66 2. 0750 2. 6343 40. 042 .8636 29. 325 19. 637 5. 2603 27. 430 19. 971 54. 334 376. 50 December. 3. 4221 20. 844 478. 88 2.0554 2. 6323 40. 080 .8559 29.174 19. 642 5. 2603 27. 213 19. 931 54. 356 373. 72 1939—January.... 3. 4258 20. 841 478. 76 2. 0543 2. 6369 40.066 .8558 29.107 19. 632 5. 2603 27. 205 19. 483 54.187 373. 59 February.. 3.4248 20. 912 480. 43 2. 0604 2. 6471 40.117 .8583 29. 078 19. 627 5. 2602 27. 297 19. 973 53. 626 374. 84 March 3.4245 20. 912 480. 40 2. 0597 2. 6488 40. 098 .8586 29. 049 19. 613 5. 2601 27. 300 20. 026 53. 092 374. 78 April 20. 891 479. 90 2.0542 2. 6478 40.081 .8579 28. 659 19. 602 5. 2601 27. 274 20. 023 53.132 374. 41 May 20. 895 479. 97 2. 0548 2. 6487 40.115 .8570 28. 884 19. 588 5. 2603 27. 277 20. 025 53. 601 374. 42 June 20. 900 480.10 2. 0559 2. 6493 40.105 . 8565 28. 916 19.577 5. 2604 27. 284 19. 753 53.167 374. 60 July 20. 896 480. 00 2. 0547 2. 6488 40.113 .8576 28. 703 19. 576 5. 2605 27. 279 17.133 53. 278 374. 49 Uruguay (peso) Year or month N (k o r r o w n a e) y P (z o l l o a t n y d ) ( P es o g c r a u t l u do - ) R ( u n le m i u a ) a- ip S A o o fr u u i n t c h a d) (p S e p s a e i t n a) ( S S m d t e o r e t l a t n l l i a t e t s r s - ) (k S d r w o e n e n - a) ( e S f r w r l a a i n t n c z d ) - ( T po u u rk n e d y ) ( U p K d o n i o u n i m t n g e d - d ) tr C o o ll n e - d N tr o o n l - l c e o d n' ( Y s d la i u n v g a i o a r - ) 1929 26. 683 11.194 4. 4714 .5961 483. 27 14. 683 56. 012 26. 784 19. 279 48.411 485. 69 98. 629 1. 7591 1930 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 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 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 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 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 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 24. 974 18. 875 4. 5130 .7382 491. 65 12.314 58. 258 25. 626 30.189 80. 357 497. 09 79. 874 2. 2965 1937 24. 840 18. 923 4. 4792 .7294 489. 62 6.053 57. 973 25. 487 22. 938 80.130 494. 40 79.072 2. 3060 1938 24. 566 18. 860 4. 4267 .7325 484.16 5.600 56. 917 25.197 22. 871 80.109 488. 94 64. 370 2.3115 1938—November. 23. 652 18. 798 4. 2683 .7305 466. 01 5.054 54. 738 24. 251 22. 653 80. 289 470. 75 61. 955 2. 2797 December . 23. 463 18. 865 4. 2406 .7315 462. 32 4.996 54. 302 24. 051 22. 612 467. 03 61. 471 2. 2776 1939—January 23. 459 18.901 4. 2384 .7311 462. 22 4.613 54. 246 24. 041 22. 582 80. 436 466. 94 61. 438 2. 2800 February.. 23. 539 18. 898 4. 2508 .7272 463. 83 54. 416 24.133 22. 672 80. 385 468. 57 61. 646 2. 2820 March 23. 539 18. 860 4. 2502 .7140 463. 74 54. 394 24.130 22. 614 80. 361 468. 54 61. 650 2. 2781 April 23. 515 18. 818 4. 2448 .7056 462. 80 54. 273 24. Ill 22. 431 80. 279 468. 05 61. 592 2. 2636 May 23. 519 18.812 4. 2460 .7056 463.11 11.023 54. 373 24.110 22. 480 80. 290 468. 13 61. 598 2. 2675 June 23. 524 18. 812 4. 2484 .7042 463. 32 11.023 54. 509 24.107 22. 546 80.101 468. 24 61. 609 35. 620 2. 2674 July 23. 520 18. 808 4. 2506 .7035 463. 28 11. 023 54. 785 24.114 22. 550 80. 021 468.15 61. 600 35. 818 2. 2744 1 Owing to establishment of exchange monopoly by Decree of Dec. 23, 1937, averages for period Jan. 1938-April 1939 represent official, and not free market, quotations as previously indicated. NOTE.—Developments affecting averages since January 1939 have been as follows: Brazil—official quotations not reported April 10-June 8 inclusive, free market quotations reported beginning June 9; Czecho-Slovakia—no quotations available beginning March 15; Spain—quotations resumed on May 15, nominal; Uruguay—non-controlled rate reported in addition to controlled rate beginning June 22. For further information concerning nominal status of exchange quotations, special factors affecting the averages, and changes in the basis of quotation, see BULLETIN for March 1938, p. 244, and March 1939, p. 236. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

832 FEDERAL RESERVE BULLETIN SEPTEMBER 1939 PRICE MOVEMENTS IN PRINCIPAL COUNTRIES WHOLESALE PRICES—ALL COMMODITIES [Index numbers] Year or month (19 U S 2 n t 6 a i = t t e e 1 d s 00) (19 C 2 a 6 n = a 1 d 0 a 0) ( K 19 U i 3 n n 0 g i = t d e 1 o d 0 m 0) (1 F 91 r 3 a = n 1 c 0 e 0) ( G 19 e 1 r 3 m = a 10 n 0 y ) (19 I 2 t 8 a = ly 100) 1 ( 9 O J 0 a c 0 p t = o a 1 b n 0 e 0 r ) (1 N 9 l e a 1 2 t 0 n 6 h 0 d - e ) 3 s r 0 - = ( S J = u w l l 1 a i y t 0 n z 1 0 d e 9 ) r 1 - 4 1926 100 100 i 124 695 134 237 106 144 1929 95 96 627 137 95 220 100 141 1930 86 87 100 554 125 85 181 90 126 1931 73 72 88 500 111 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 75 94 411 104 76 198 64 96 1937 86 85 109 581 106 89 238 76 111 1938 79 79 101 653 106 95 251 72 107 1938—June. 78 80 101 660 106 96 254 72 107 July . 79 79 101 652 106 95 254 71 106 August 78 76 100 649 106 96 252 71 105 September __ _ 78 75 98 652 106 97 252 71 106 October 78 74 99 664 106 97 253 71 106 November 78 74 98 674 106 97 254 70 106 December _ 77 73 98 684 106 96 255 71 106 1939—January 77 73 97 689 107 97 259 70 106 February 77 73 97 685 107 97 264 70 105 March _ _ _ 77 73 97 683 107 98 265 70 105 April 76 73 97 675 106 98 266 70 106 May 76 74 98 684 107 97 270 70 107 June 76 73 98 683 107 98 270 70 106 July 75 73 98 678 270 i Approximate figure, derived from old index (1913—100). WHOLESALE PRICES—GROUPS OF COMMODITIES [Indexes for groups included in total index above] United Kingdom United States (1926=100) (1930=100) France (1913=100) Germany (1913=100) Year or month Indus- Other Indus- Farm Indus- Agricul- trial raw Indus- Farm Foods commod- Foods trial and food trial tural Provi- and semi- trial finproducts ities products products products products sions finished ished products products 1926 __. 100 100 100 581 793 129 132 130 150 1929 105 100 92 579 669 130 125 132 157 1930 88 91 85 100 100 526 579 113 113 120 150 1931 65 75 75 89 87 542 464 104 96 103 136 1932 48 61 70 88 85 482 380 91 86 89 118 1933 _ 51 61 71 83 87 420 380 87 75 88 113 1934 65 71 78 85 90 393 361 96 76 91 116 1935 79 84 78 87 90 327 348 102 84 92 119 1936 81 82 80 92 96 426 397 105 86 94 121 1937 ___ 86 86 85 102 112 562 598 105 96 96 125 1938 __. 69 74 82 97 104 641 663 106 91 94 126 1938—June 69 73 81 99 101 657 663 106 90 94 126 July 69 74 81 98 102 630 671 106 90 94 126 August _ 67 73 81 95 102 625 670 107 90 94 126 September. _ _ _ _ 68 75 81 92 102 631 669 106 91 94 126 October 67 74 81 93 102 646 680 106 92 94 126 November. 68 74 81 91 103 662 685 107 95 94 126 December 68 73 80 92 102 684 685 107 95 94 126 1939—January 67 72 80 93 100 688 690 108 94 94 126 February _ __ 67 72 80 91 100 673 694 108 94 94 126 March 66 70 80 90 100 671 694 108 94 95 126 April. _ 64 69 81 91 100 650 697 107 92 95 126 May.__ _ _____ 64 68 81 92 101 652 712 108 94 94 126 June 62 68 80 92 101 ••643 718 109 91 94 126 July 63 68 80 91 102 629 721 P126 p Preliminary. 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

833 SEPTEMBER 1939 FEDERAL RESERVE BULLETIN PRICE MOVEMENTS IN PRINCIPAL COUNTRIES—Continued RETAIL FOOD PRICES COST OF LIVING [Index numbers] [Index numbers] United Eng- Ger- Nether- Switz- United Eng- France Ger- Nether- Switz- Year or States land France many lands erland Year or States land Jan.- many lands erland month 1923- July July 1913- 1911- June month 1923- July June 1913- 1911- June 1925=1001914=1001914=1001914=1001913=1001914=100 1925=1001914=1001914=1001914=1001913=1001914=100 1926 109 161 554 146 161 160 1926 103 170 505 142 168 162 1929 _ _ 105 154 611 156 162 156 1929 100 164 656 154 168 161 1930 100 145 614 146 150 152 1930 97 158 681 148 161 158 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 79 141 516 121 140 129 1935 81 125 423 120 118 114 1935 81 143 483 123 136 128 1936 _ 82 130 470 122 120 120 1936 82 147 507 125 1 132 130 1937 85 139 601 122 127 130 1937 84 154 619 125 137 137 1938 79 141 702 122 130 130 1938 83 156 *>698 126 139 137 1938-June 80 138 698 123 134 130 1938 June 83 155 692 126 140 137 July 80 146 671 124 130 129 July 159 127 139 137 August 78 141 677 124 129 129 August.-. 156 127 138 136 September 79 140 697 121 130 130 September 83 156 689 125 139 137 October, __ 78 139 725 121 130 130 October 155 125 138 137 November 78 140 727 121 128 130 November 156 125 137 137 December. 79 139 742 121 130 130 December. 83 156 722 125 138 137 1939-January._. 78 138 748 122 129 1939-January 155 126 137 February- 77 138 744 122 129 February 155 126 136 March 76 135 742 123 *130 128 March 82 153 126 2138 136 April.. _ 77 135 734 122 129 April 153 126 136 May. 77 134 738 123 130 May 153 126 137 June 76 134 739 124 131 June 153 127 137 July . 77 July Quarterly basis. p Preliminary. Sources.—See BULLETIN for April 1937, p. 373. 1 Revised index from March 1936 (see BULLETIN for April 1937, p. 373) 2 Quarterly basis. SECURITY PRICES [Index numbers except as otherwise specified] Bonds Common stocks Year or month ( p U a S r v t n i e a c i r e t t a e e ) s g d l e ( 1 D E 9 e n 2 c 1 g e = l m a 1 n 0 b d 0 e ) r (19 F 1 r 3 a = n 1 c 0 e 0) G (a p e v r r e i m c r e a a ) g n e y N la e n th d e s r 2 - U S n ta it t e e d s Engla ( n 1 d 926=10 F 0 r ) ance Germany (1 N 9 l 3 e a 0 t n h = d e 1 s r 0 - 0) Number of issues.. 60 87 36 139 8 420 278 300 329 100 1926 97.6 110.0 57.4 100.0 100.0 100.0 100.0 1929. 98.1 110.2 85.1 81.4 100.0 190.3 119.5 217.6 122.8 1930 99.3 111.8 95.8 83.3 104.3 149.8 102.6 187.6 100.2 100 1931 90.9 108.4 96.9 3 83.4 104.1 94.7 78.9 132.2 • 78.0 70 1932 69.5 113.2 88.6 3 67.1 94.8 48.6 67.9 105.2 »50.3 46 1933 73.4 119.7 81.3 82.5 105.3 63.0 78.6 99.6 61.7 52 1934 . _ — 84.5 127.5 82.1 90.7 113.4 72.4 85.7 83.3 71.1 55 1935 88.6 129.9 83.5 95.3 107.8 78.3 86.3 79.7 82.9 55 1936.... 97.5 131.2 76.3 95.8 109.1 111.0 97.0 77.2 91.6 66 1937 93.4 124.6 75.1 98.7 * 101. 8 111.8 96.3 97.4 102.6 104 1938 78.9 121.3 77.3 99.9 105.9 83.3 80.8 89.7 100.1 96 1938—June 75.3 121.9 77.2 100.0 107.0 73.1 78.5 91.4 101. 4 91.6 July 80.8 123.4 76.5 100.0 107.0 88.0 82.1 88.8 99.0 97.2 August 81.3 122.4 76.6 99.9 106.3 89.5 81.1 87.6 93.8 97.1 September... 78.7 118.4 75.6 99.8 100.6 86.0 78.4 83.7 94.7 92.8 October 81.8 118.2 78.3 99.8 105.6 91.1 79.6 88.0 98.6 98.0 November.. 82.1 118.0 80.6 99.7 105.3 94.7 80.4 91.8 97.2 98.8 December... 81.1 116.3 88.3 99.2 105.9 92.0 78.4 104.7 94.6 97.8 1939—January 81.9 115.9 83.4 99.0 104.3 91.8 78.0 94.0 95.3 94.3 February 82.1 115.8 86.5 99.0 102.1 90.1 77.5 100.0 96.1 92.4 March 83.1 113.6 86.0 99.0 100.9 91.7 77.1 97.9 94.4 94.0 April.. 79.4 110.8 86.6 99.0 95.2 81.9 75.1 97.9 94.9 87.2 May.. 80.2 113.5 85.1 99.0 98.0 83.1 77.0 103.0 94.1 89.3 June. 81.4 113.5 84.0 99.0 96.3 86.0 76.6 98.3 92.5 91.6 July 81.6 112.5 84.3 99.0 86.1 75.8 100.4 91.7 1 Prices derived from average yields for 60 corporate bonds as published by Standard Statistics Co. 2 Indexes of reciprocals of average yields. For old index, 1929-1936, 1929=100; average yield in base year was 4.57 per cent. For new index beginning January 1937, January-March 1937=100; average yield in base period was 3. 39 per cent. 3 Exchange closed from July 13 to Sept. 2, 1931, and from Sept. 19, 1931, to Apr. 11, 1932. Index for 1931 represents average of months January- June; index for 1932 represents average of months May-December. * New index. See note 2. Sources— See BULLETIN for February 1932, p. 121; June 1935, p. 394; April 1937, p. 373; July 1937, p. 698; and November 1937, p. 1172. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE DIRECTORY 835 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 M. S. SZYMCZAK CHESTER C. DAVIS JOHN K. MCKEE ERNEST G. DRAPER 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 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 O. E. FOULK, Fiscal Agent JOSEPHINE E. LALLY, Deputy Fiscal Agent FEDERAL OPEN MARKET COMMITTEE FEDERAL ADVISORY COUNCIL MARRINER S. ECCLES, Chairman District No. 1 (BOSTON) THOMAS M. STEELE GEORGE L. HARRISON, Vice Chairman District No. 2 (NEW YORK) LEON FRASER CHESTER C. DAVIS District No. 3 (PHILADELPHIA) HOWARD A. LOEB, ERNEST G. DRAPER V ice-President M. J. FLEMING District No. 4 (CLEVELAND) T. J. DAVIS GEORGE H. HAMILTON HUGH LEACH District No. 5 (RICHMOND) ROBERT M. HANES WM. MCC. MARTIN District No. 6 (ATLANTA) EDWARD BALL JOHN K. MCKEE District No. 7 (CHICAGO) EDWARD E. BROWN RONALD RANSOM District No. 8 (ST. LOUIS) WALTER W. SMITH M. S. SZYMCZAK President CHESTER MORRILL, Secretary District No. 9 (MINNEAPOLIS) JOHN CROSBY S. R. CARPENTER, Assistant Secretary District No. 10 (KANSAS CITY) JOHN EVANS WALTER WYATT, General Counsel District No. 11 (DALLAS) R. E. HARDING J. P. DREIBELBIS, Assistant General Counsel District No. 12 (SAN FRANCISCO)__.PAUL S. DICK E. A. GOLDENWEISER, Economist JOHN H. WILLIAMS, Associate Economist WALTER LICHTENSTEIN, Secretary ALLAN SPROUL, Manager of System Open Market Account 836 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SENIOR OFFICERS OF FEDERAL RESERVE BANKS Federal Reserve Chairman and Federal President First Vice President Vice Presidents Bank of— Reserve Agent Boston F H Curtiss R. A. Young W. W. Paddock _._ W. Willett 2 New York Owen D. Youna:_ G. L. Harrison Allan Sproul _. L. R. Rounds W. S. Logan J. H. Williams R. M. Gidney L. W. Knoke Philadelphia T. B. McCabe J S Sinclair F J Drinnen C. A. Mcllhenny 3 W. J. Davis E. C. Hill Cleveland G C Brainard M J Fleming F J Zurlinden W H. Fletcher G. H. Wagner W. F. Taylor s Richmond Robert Lassiter Hueh Leach J. S. Walden, Jr. J. G. Fry G. H. Keesee * Atlanta F. H. Neelv R. S. Parker W. S. McLarin, Jr.3 H. F. Conniff M. H. Bryan Chicago R. E. Wood i G. J. SehaUer II. P. Preston C. S. Young W. H. Snyder 3 J. H. Dillard ! I v^t Louis W T Nardin W McC Martin F G Hitt 0 C . . M M . . A St t e t w eb a e r r t v 2 Minneapolis W C Coffev i J. X. Pevton 0. S. Powell II. I. Ziemer 3 E. W. Swanson Kansas City R B C aid well G II Hamilton C. A. Worthington II. G. Leedy J. W. Helm a Dallas J II Men-itt R R Gilbert E B Stroud R. B. Coleman W. J. Evans W. 0. Ford 2 San Francisco St George Holden [ W \ Dav Ira Clerk W. M. Hale C. E. Earhart, 2 R. B. West Deputy chairman. 2 Cashier. 3 Also cashier. MANAGING DIRECTORS OE 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 P. A. Brown Oklahoma City Branch C. E. Daniel Richmond: Omaha Branch L. II. Earhart Baltimore Branch___ __. _W. R. Milford Dallas: 1 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 L. M. Clark Portland Branch D. L. Davis Chicago: Salt Lake City Branch W. L. Partner Detroit Branch R. H. Buss Seattle Branch C. R. Shaw St. Louis: Little Rock Branch A. F. Bailey Louisville Branch F. D. Rash Memphis Branch _ _ W. H. Glasgow SUBSCRIPTION PRICE OF BULLETIN The FEDERAL RESERVE BULLETIN is an official publication of the Board of Governors of the Federal Reserve System. The BULLETIN is issued monthly and is sent to member banks without charge. To others the subscription price, which covers the cost of paper and printing, is as follows: in the United States, Canada, Mexico, and insular possessions, $2.00 per year and 20 cents per single copy; elsewhere, $2.60 per year and 25 cents per single copy. 837 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE DISTRICTS Birmingham AUA-;V)6 t Sav wm—m BOUNDARIES OF FEDERAL RESERVE DISTRICTS .-I*. BOUNDARIES OF FEDERAL RESERVE BRANCH TERRITORIES (APPROXIMATE IN THE ST. LOUIS DISTRICT) ® FEDERAL RESERVE BANK CITIES. • FEDERAL RESERVE BRANCH CITIES O FEDERAL RESERVE BANK AGENCY Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis