Federal Reserve Bulletin, 1939-12

FEDERAL RESERVE BULLETIN DECEMBER 1939 Recent Gold and Capital Movements Economic Controls in Foreign Countries Amendments to Regulations F and H Annual Report of Foreign Central Banks Netherlands and Argentine *** 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 gold and capital movements; Economic controls in foreign countries 1039-1049 National summary of business conditions 1050-1051 Summary of financial and business statistics 1053 Law Department: Financial Transactions under Neutrality Act of 1939 1054 Amendments to Regulation F—Trust Powers of National Banks 1054 Amendments to Regulation H—Membership of State Banking Institutions in the Federal Reserve System : 1054-1064 Number of banks and branches 1933-1939 1065 Analysis of changes in number of banks and branches; January 1-September 30, 1939 1066 Restoration of Netherlands Government's power to prohibit the export of gold 1067 Annual Report of the Netherlands Bank 1068-1076 Annual Report of the Central Bank of the Argentine Republic 1077-1094 Financial, industrial, and commercial statistics, United States: Member bank reserves, Reserve bank credit, and related items 1096 Federal Reserve bank statistics 1097-1101 Reserve position of member banks; deposits in larger and smaller centers 1102 Money in circulation 1103 Gold stock and gold movements; bank suspensions; bank debits 1104 All banks in the United States.... 1105 All member banks 1106-1107 Condition of reporting member banks in leading cities 1108-1111 Acceptances, commercial paper, and brokers' balances 1112 Federal Reserve bank discount rates 1113 Money rates and bond yields 1114 Security markets 1115 Treasury finance 1116-1117 Governmental corporations and credit agencies; Postal Savings System 1118-1119 Production, employment, and trade 1120-1128 Wholesale prices 1129 Crop report 1130 Statistics for Federal Reserve chart book 1131-1132 International financial statistics: Gold reserves of central banks and governments 1134 Gold production 1135 Gold movements, 1135-1136 International capital transactions of the United States 1137-1139 Central banks 1140-1143 Bank for International Settlements . 1144 Money rates 1144 Discount rates of central banks 1145 Commercial banks 1145-1146 Foreign exchange rates 1147 Price movements: Wholesale prices ^ 1148 Retail food prices and cost of living 1149 Security prices 1149 Federal Reserve directory: Board of Governors and staff; Open Market Committee and Staff; Federal Advisory Council 1151 Senior officers of Federal Reserve banks; managing directors of branches 1152 Index to volume 25 1153 II Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN VOL. 25 DECEMBER, 1939 No. 12 REVIEW OF THE MONTH the three crisis movements the inflow both of gold and of capital to the United States in From the outbreak of war to the middle the twelve months ending August was conof November acquisitions of foreign gold by siderably larger than at any previous time. the United States Treasury It brought the total inflow of gold since Jan- Recent gold and through import and release uary 1934 to $9,000,000,000 and the recorded capital movements _ net capital inflow to $5,300,000,000. Most from earmark averaged of the difference between these two figures $50,000,000 a week as against a weekly averis accounted for by the $2,600,000,000 excess age of $60,000,000 in the preceding twelve of merchandise exports of the United States months when the gold movement reached its and by transactions that have not been idenpeak. The current movement reflects to tified. Of the recorded capital movement a a large extent the need of foreigners for third represented the return of American dollars with which to pay for the excess of capital from abroad and the accumulation exports from the United States, which of dollar balances by foreign official instituamounted to $107,000,000 in September and tions; the remainder represented private reached a new high level for recent years of funds sent here by foreign nationals for de- $117,000,000 in October. Reported figures posit in banks or for the purchase of Amerishow little net movement of capital since the can securities. The full movement of funds, end of August. A small inflow of funds from including unrecorded transactions, may have neutral countries has been offset by utilizabeen considerably larger. tion of dollar deposits and selling of Amer- Half of the private movement of foreign ican securities by belligerents. Transactions capital to the United States in the period not covered by current statistics were apparsince early 1934 came ently substantial. British foreign f United King- When war broke out the third large flight rom the exchange regulations movement of capital from Europe to the dom, France, and the United States in less than a year was in prog- countries of the British Empire. To bring ress. The first of these movements occurred a halt to this type of capital outflow and to in September and October 1938 and was con- obtain control over funds sent abroad in the nected with the events immediately preceding past the British and French Governments and following the Munich settlement; the sec- have imposed strict foreign exchange regulaond began in March 1939 following the Ger- tions. In the United Kingdom the export of man move on Prague; and the third com- currency and gold has been subjected to limenced early last August. In a space of only cense and the business of dealing in foreign twelve critical weeks—four in September exchange has been centralized in the Bank of 1938, five in March and April of this year, England and the principal commercial banks and three immediately preceding the outbreak acting under its supervision. Initially all of war—$1,600,000,000 of foreign gold came purchases of foreign exchange, and all transto the United States. Largely as a result of fers of sterling from the accounts of residents 1039 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1040 FEDERAL RESERVE BULLETIN DECEMBER 1939 of the United Kingdom to those of non-resi- Earlier in the year, before the war crisis dents, were prohibited except on application reached its peak, fluctuations in sterling had to an authorized dealer. Transactions for been held within a narrow range by official the purpose of liquidating old contracts, de- gold operations, but on August 25 the British fraying reasonable travelling expenses, or Fund withdrew its support and the rate fell meeting reasonable business requirements EXCHANGE, RATES IN NEW YORK such as payments for imports, insurance pre- AUGUST - NOVEMBER, 1939 miums and claims, or freight charges, were for the most part freely approved, but others were subject to special review. Subsequently these provisions were somewhat modified, the most important new ruling providing that transactions with British territories other than Canada, Newfoundland, and Hong Kong were not subject to restriction. Exchange regulations adopted throughout the Empire were essentially similar to those of the United Kingdom. As a further limitation on the power to export capital, residents of the United Kingdom are required, with certain exceptions, to sell to authorized dealers for account of the Government all receipts of currencies of the United States, Argentina, Belgium, Canada, France, Netherlands and Netherlands East Indies, Norway, Sweden, and Switzerland. Both sales and purchases of exchange on these countries in London must be carried AUG. SEPT. OCT. NOV. out at the official buying and selling rates 1939 fixed by the Bank of England; other exchange Certified noon buying rates for cable transfers. dealings take place at rates established in the sharply. For several days it moved erratimarket. The official buying and selling rates cally in an uncontrolled market. When the for dollars are $4.04 (originally $4.06) and new exchange regulations and official rates $4.02 respectively. first became effective the New York quota- While non-residents of the United Kingdom tion steadied at the new level, but it subseare subject to the same restrictions as resi- quently turned irregularly lower. Quotations dents in the matter of purchasing foreign in New York and other foreign centers, howexchange through authorized dealers at the ever, apply to only a part of the total volume official or market rates in London, they are of transactions; the rest are carried out in apparently not prevented from selling their London at the official rates. sterling abroad. It is this provision that has The chart also shows the trend of New made it possible for foreigners to deal in York quotations for the Canadian dollar and sterling exchange outside London at vary- the Netherlands guilder. The former is the ing rates. The chart shows that the rate for only British Empire currency which has not sterling in New York, for example, has notclosely followed the course of sterling; the generally remained within the spread of the latter is representative of several currencies, official buying and selling rates in London. including the Swiss franc and Swedish krona, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1041 DECEMBER 1939 FEDERAL RESERVE BULLETIN which have been held relatively steady in export of any holdings of securities, claims terms of the dollar. to foreign exchange, and similar assets, is Besides prohibiting the current export of forbidden. The regulations are administered capital, the British regulations contain pro- by an Exchange Bureau operated by the visions concerning certain assets acquired Bank of France, and foreign exchange dealbefore the war began. Under these provi- ings are centralized in the Bureau and banks sions residents of the United Kingdom who acting under its direct supervision. Exare owners of gold or of foreign exchange change will be made available for necessary denominated in the currencies of the specified and approved commercial transactions, for countries mentioned above must offer such payment of debts arising from transactions holdings to the Treasury unless it can be undertaken before September 10, 1939, and shown that they are required for approved for certain other purposes. purposes. Stocks, bonds, and other securities The offer to the authorities of gold and payable in the specified currencies can be foreign balances held at the outbreak of war sold or transferred by residents only with has not been required in France as it has in the permission of the Treasury, and the England. All such holdings as well as for- Treasury is given power to acquire such se- eign securities held abroad on December 31, curities at some future time. Acting under 1939, and in some cases foreign assets held in this authority the Treasury has requisitioned France, must be declared before January holdings of the Canadian 3!/2 per cent ster- 15, 1940, however. Dealings in foreign seling loan of 1930-1950, amounting to about curities have not been restricted, but owners £28,000,000; this will make it possible for of foreign assets subject to declaration must the Canadian Government to redeem these be prepared to explain transactions negoobligations in advance with part of the protiated after December 31, 1939, and the forceeds of a $200,000,000 issue of 2 per cent eign currency proceeds of security sales must two-year notes sold to banks in Canada, and be turned over to the Exchange Bureau. will provide the British authorities with a Complete figures on the foreign assets of substantial amount of Canadian exchange. the belligerent countries are not available. There is no evidence that other securities It is believed, however, have yet been requisitioned but sale of securi- Foreign resources holdings in the ties in foreign markets has been permitted that their of the belligerents • i , in certain cases on condition that the foreign United States include a exchange proceeds be delivered to the Treaslarge part of their more readily disposable ury. There has been some selling of this resources—gold and short-term balances and character in the United States. securities denominated in the currencies of To enable the Treasury to pay for foreign countries with relatively free and well-develassets acquired under the new regulations oped financial markets. So-called direct inthe previous limit of £575,000,000 on the bor- vestments in controlled enterprises such as rowing power of the Exchange Equilization railways and other utilities, mines, oil wells, Account has been removed. manufacturing enterprises, agricultural prop- The export of capital from France in any erties, and other real estate, which bulk large form has been prohibited. The regulations in British overseas investments, are less likely forbid the purchase to be readily marketable. Some of these as- French foreign abroad of any property sets are situated in the United States, as # exchange regulations shown in the table below, but a larger part is or securities. All foreign held in Empire and other countries not highly exchange received for exports or services industrialized. There is a certain reluctance, abroad must be returned to France, and the moreover, to lose control of such enterprises Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1042 FEDERAL RESERVE BULLETIN DECEMBER 1939 through sale to foreign interests. Obligations figure for all countries is nearly half again as issued by governments and municipalities in large as the export surplus of the United the less highly developed countries, of which States during the four years of the World British investors hold a considerable volume, War, which amounted to $11,800,000,000. do not possess the ready availability of gold Approximately half of all foreign holdings of and of balances and securities denominated gold and dollar resources at the present time in dollars and other leading currencies, al- is under the control of the British Empire and though they may be negotiable under certain France. conditions in the countries of issue. During the World War little more than a The table below presents data on the esti- quarter of the export surplus of the United mated distribution at the end of August 1939 States was paid for through the sale in this of foreign balances and investments in the country of gold and American securities held United States and of central gold reserves, by foreigners, as shown in the first table on together with estimated gold production in the next page. The remainder was covered 1938. Figures of dollar resources for dates by foreign borrowing in the United States. since August have not yet been published. The present situation differs in a number The first column of the table shows total hold- of respects from that of twenty-five years ago. ings of the more readily available inter- The Neutrality Act passed early in November national resources—gold, dollar balances, and has closed the American capital market to American securities. It does not include belligerent Governments, and a number of direct investments in the United States. The other potential borrowers are debarred under FOREIGN HOLDINGS OF GOLD, DOLLAR BALANCES, AND AMERICAN INVESTMENTS END OF AUGUST 1939 [Approximate figures in millions of dollars] Gold, dollar balances, and securities r Direct and other Annual Securities readily negotiable investments gold Country>r area (co T ls o . t a 2 l -4) r C e e g se n o r l t d v ra e l s b D al o a l n l c a e r s (market value) ( b v v a a a s r l e u i s o e o u ) f s pro ( d 19 u 3 c 8 t ) ion (co T ls o . t a 5 l -7) Co st m oc m k o s n Pr s e t f o e c r k re s d Bonds 1 2 3 4 5 6 7 8 9 Belligerents: United Kingdom 3,330 i 2,000 595 735 535 120 80 900 Franee 3,500 13,000 315 185 130 15 40 80 (2) Canada __ . 1,070 215 355 500 400 60 40 560 165 Other British and French countries... 540 540 * * * * 585 Total British Empire and France- 8,440 5,755 1,265 1,420 1,065 195 160 1,540 750 Germany 160 3 150 10 * * * * * Neutrals: Italy 200 4 190 10 * * * * * (2) Netherlands . 1,400 770 160 470 270 25 175 380 Switzerland _. 1,250 590 285 375 295 30 50 170 U. S. S. R. 1,000 6 1,000 * * * 6185 Other European countries 2,750 2,190 430 130 65 30 35 120 10 Latin America 6 1,090 660 390 40 30 5 5 10 90 Far East and other8 1,110 375 355 380 335 20 25 180 115 Total neutrals .._ 8,800 5,775 1,630 1,395 995 110 290 860 400 All foreign countries. 17,400 11, 680 2,905 2,815 2,060 305 450 2,400 1,150 * SSmmaallll aammoouunnttss nnoott ppuubblliisshheedd sseeppaarraatteellyy.. 1 BBrrooaadd eessttiimmaattee,, bbaasseedd oonn llaatteesstt rreeppoorrtteedd figures of Stabilization Fund holdings and data on gold movements. 2 LLL eessss ttthhha ann $$$555,00,0000000,00,0000000.. 33 BBrdo ad etstiitm abte, based on probable acquisitions of gold from private note-issuing banks in 1935, Austria in 1938, and Czecho-Slovakia in 1939, adjusted for net exports since 1935. < Reported figure for December 1938. * Estimate based on scattered data. • Includes small amounts for British and French possessions Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1043 DECEMBER : FEDERAL RESERVE BULLETIN UNITED STATES BALANCE OP PAYMENTS $1,000,000—to the Exchange Equalization JULY 1914-DECEMBER 1918 Account, and the fiduciary note issue of the [In billions of dollars] Bank was increased correspondingly. In France the requirement that the Bank of Pay- Re- Item ments ceipts France maintain a gold reserve equivalent to 35 per cent of its total sight liabilities was Excess of merchandise exports 11.8 Payment effected through: suspended. The German Reichsbank has had Gold imports 1.0 Estimated European sales of American no effective legal reserve requirement since securities 2.0 1931. Total gold and securities- 3.0 Foreign loans sold to private investors in FOREIGN HOLDINGS OF GOLD AND DOLLAR RESOURCES United States 1.5 Direct advances by United States Govern- 1914 AND 1939 ment after April 1917 _. 7.3 [Approximate figures in millions of dollars] Total loans to foreigners _.. Total gold and Estimated net service payments to foreigners. 0.4 dollar resources Central Dollar Net receipts from unidentified transactions 0.4 Country gold resources reserves 12.2 12.2 11939 1914 21914 3 1914 Source: Review of Economic Statistics, Volume I, p. 251. Leading belligerents: United Kingdom 4,230 2, 765- 3, 965 165 2, 600-3,800 France 3,580 1,080- 1, 280 400- 600 the Johnson Act. On the other hand, the dol- Canada 1,630 4 115 115 (6) Germany 160 1,030- 1, 330 6330 700-1,000 lar value of disposable international resources Other countries: Netherlands 1,780 660- ! 600- 800 is much larger than in 1914. Estimates of Allother 8,420 2, 450- 2, 550 2,250 200- 300 pre-war foreign investments in the United All foreign countries 19,800 8,100-10,100 3,600 4, 500-6, 500 States are subject to a wide margin of error, 1 Data from table on page 1042, including direct and other investments and no classification by type is available. The (column 8). 2 Figures are for end of December 1913. Monetary gold outside central data presented in the following table, how- reserves in leading countries in 1914 has been estimated as follows, in millions, of dollars: United Kingdom, 600; France, 965; Germany, 475; ever, indicate that foreign dollar resources Kussia, 255; estimate for Russia from European Currency and Finance, Vol. II (Commission of Gold and Silver Inquiry, 1925); other estimates plus gold holdings are currently perhaps twice from Currencies after the War (League of Nations, 1920). 3 Lower figure for all countries is estimate given in Review of Economic as large as in 1914; and the dollar value of Statistics, Vol. I, p. 230; higher figure and distribution by countries based on estimates of Sir George Paish, given in Report of National foreign gold production is three times as Monetary Commission, 1910. 4 Gold only; see note 5. large. Finally, there is a greater readiness 6 No estimate available; included with "All other" countries. 8 Includes $50,000,000 of gold held by Government as war reserve to use gold reserves. The belligerent powers (Annual Report of the Reichsbank, 1914) .£;, • as a group emerged from the World War with The financial measures taken by the United considerably larger central gold reserves than Kingdom and France are designed to conthey possessed at its beginning. While this serve and mobilize their was directly attributable to the return of gold Economic controls international resources. coin from circulation, a considerable amount m foreign countries . . .. As such they constitute of which was, in fact, shipped abroad, it also one segment of a broad economic and fiscal reflected a desire to maintain gold reserves in program for making the most effective use preparation for an expected return to the gold of available international resources and instandard after the war. In the present internal productive facilities. This program stance, however, none of the belligerents was involves the establishment of rigid controls on the gold standard at the outbreak of war, over imports and exports and over the interand the two holding most gold took immediate nal production, use, and prices of essential action to make their entire gold reserves commodities. It also involves a sharp inavailable for international use. In Great crease in governmental expenditures and a Britain the gold holdings of the Bank of revision of the tax structure. As a supple- England were transferred in their entirety— ment to their independent efforts the British except for a nominal amount of less than and French Governments announced around Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1044 FEDERAL RESERVE BULLETIN DECEMBER 1939 the middle of November a plan for coordinate or semi-luxury character was prohibited. action in a number of fields; henceforth im- For goods falling less definitely in this cateport programs will be drawn up jointly and gory, or which are manufactured in sufficient direction of their combined merchant fleets quantities in the United Kingdom, such as will be centralized in London. textiles, leather and rubber manufactures, In Germany the control of international and certain types of machinery, importation transactions and of domestic business had was made subject to license. In the case of already reached an advanced stage of devel- most raw or semi-finished industrial materiopment before the war began. The new als and foodstuffs the Government has either measures, therefore, have constituted an ex- reserved the sole right of purchase abroad tension of the previously existing system or exercises indirect control through the rather than a fundamental change. granting of foreign exchange permits, allocat- The adoption of various types of control ing cargo space in British ships, regulating measures has not been confined to the bellig- the distribution of supplies within the counerents. A number of neutral countries with try, or establishing maximum sterling prices previously free markets have invoked ex- at too low a level to allow purchases abroad. change restrictions, and others have tight- To ensure an adequate supply of certain ened existing regulations. Few countries essential raw materials and foods the British now have free exchange markets. Government has negotiated special contracts. Neutral countries have also endeavored to It has arranged, for example, to purchase the protect themselves against possible shortages entire exportable surplus of wool, lead, and of essential commodities as a result of the zinc from Australia and New Zealand for the war. Nearly every country in Europe and duration of the war and has entered into some on other continents have subjected ex- more limited contracts with Empire and ports and imports to controls of varying other countries for bulk purchases of such extent and severity. A smaller number, articles as meat and dairy products and copincluding the Netherlands, Switzerland, per. British Empire production of many Sweden, Norway, and Denmark, have taken basic commodities is well in excess of recent steps of an internal character. With differ- consumption in the Empire and France. ences as to countries and commodities af- Sharp declines in the volume of British fected, maximum prices have been set, the exports and imports in September were to allocation of raw materials to industry and some extent the result of temporary inthe disposition of finished products have been fluences such as the sudden disruption of taken under official supervision, and limits shipping schedules and the imperfect funchave been placed on the use of certain com- tioning of the new license-issuing machinery. modities. They also reflected severance of trade with Shortly before the outbreak of war the Germany and the war-time reorganization British Government prohibited the export of of British business. The October figures for many essential raw imports, and to a much smaller extent for United Kingdom—control materials such as exports, were higher than in September, but of imports and exports . both remained well below those of a year ago. rubber and various Internal trade in a considerable number of non-ferrous metals. Subsequently nearly all important commodities has been subjected exports were made subject to license or other to direct control in the types of regulation, and control over imports Internal control United Kingdom. The type was established. The importation of passenand degree of supervision varies widely. ger cars, various types of clothing, jewelry, Trading in many raw foods has been placed and other manufactured articles of a luxury Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1045 DECEMBER 1939 FEDERAL RESERVE BULLETIN under the Ministry of Food, which exercises 37V2 per cent and certain exemptions were virtually complete authority over stocks, im- lowered; surtax and estate tax rates were ports, and wholesale distribution. Maximum raised; and a general excess profits tax was prices have been set in a number of instances imposed. Increases in indirect taxes affected and plans for rationing are under way. Thus mainly alcoholic beverages, sugar, and tofar, gasoline, coal, gas, and electricity are bacco. the only important commodities to be rationed Revenue from the new taxes will cover comdirectly, although civilian consumption of paratively little of the increased expenditure wool and some other commodities is limited authorized by Parliament last through controlling the use of raw materials Government September. The budget prexpenditure by manufacturers. The limitation on gaso- sented in April provided for line consumption is particularly severe; it is £620,000,000 of defense expenditure in the estimated that civilian consumption will be fiscal year ending March 1940, an increase of reduced 25 to 50 per cent. more than 50 per cent over the preceding Leading industrial products such as iron, fiscal year. Subsequent authorizations raised steel, and other metals, wood, and textiles ;he defense appropriation to £750,000,000 and have been subjected to varying degrees of established the sum to be borrowed at £500,regulation. In some instances reports only 000,000. With the outbreak of war the Govare required; in others maximum prices have ernment received authority to spend an addibeen set, priority has been given to gov- tional £500,000,000. While all budget estiernment contracts, and sales of finished mates in time of war are subject to great goods and purchases of raw material are uncertainty, it now appears that the Governregulated. ment may spend £1,200,000,000 for military The new British tax schedule presented to purposes and air raid defense during the cur- Parliament toward the end of September sup- rent fiscal year, or approximately three times plements the other measures as much as in 1938-39. Total expenditure New taxation of control. Its significance lies may amount to about £2,000,000,000, of which in the fact that it will somewhat limit the ex- about half is expected to be borrowed. To aspenditures of the civilian population, both by sure the best possible terms for Government absorbing income and by curtailing the con- borrowing, private businesses have been prosumption of particular commodities. It will hibited from issuing securities without Treasthus facilitate the diversion of resources from ury authorization. civil to military uses, which is the major task Not all of the new Government expenditure of a war-time economy. While estimates of will result in additional orders for industry. revenue from the new taxes are, in the nature Some of it will merely replace private sources of the case, uncertain, it is expected that they of demand eliminated by the war. But in will bring in rather more than £100,000,000 many lines the accelerated rate of armament during the remainder of the current fiscal expenditure will call forth additional indusyear and over twice as much in 1940-41. Sub- trial output and may stimulate private instantial reductions are expected, however, vestment. The expansive effect on total outin the revenue from certain other taxes, put and on business conditions generally in particularly those on gasoline and motor the United Kingdom will be retarded to the vehicles. extent that private consumption is curtailed A large part of the added revenue will be and difficulties develop in shifting plant, derived from direct taxation. The standard equipment, and labor to unaccustomed emrate of income tax was raised from 27^ to ployments. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1046 FEDERAL RESERVE BULLETIN DECEMBER 1939 In recent years British business conditions ture for armament. The iron, steel and other have come increasingly under the influence metal-working trades, machinery, and shipof government expenditures building were affected particularly. They British business f rearmament. The early continued to receive support from governor ment expenditure during the period of declindevelopments _ _ ... phases of the recovery ing production and employment that began in movement that began in 1932 were founded the latter part of 1937. Under the influence to a large extent on an expanding volume of of still larger military and naval appropriaprivate investment, particularly the construc- tions they led the upturn that commenced tion of dwellings and the modernization of toward the end of 1938. The strong upward industrial facilities. With expanding national trend that was under way before the outbreak of war is shown on the chart. INDUSTRIAL PRODUCTION UNITED KINGDOM AND FRANCE The mixed initial effects of the war on PER CENT PER CENT the British economy are epitomized in the 140 v 140 V changes that took place in the volume of UNITED KINGDOM 120 120 unemployment in the two months ending r v October 16. During this period there was 100 J 100 an increase of approximately 200,000 in the number of registered unemployed in the V United Kingdom, some of whom were seeking 60 80 employment for the first time. 120 120 While on balance the increase occurred en- KJO FRANCE / 100 tirely among women, there were many shifts INDEX in which both men and women were involved. #X MlV V f As shown in the table unemployment was con- BO NDE.X - ••• 80 V V fined largely to the service trades, with the f largest increases being recorded for workers in the hotel, boarding-house, entertainment, 60 and various retail distribution lines. These 1934 1938 were particularly hard hit by the "blackout" Official indexes of physical volume of production on a ratio scale. United Kingdom: Board of Trade; quarterly index un- system, the evacuation of urban areas, and the adjusted for seasonal variation; 1930 = 100; latest figure, second quarter 1939; figures for 1932-33 represent old Board of Trade disruption of normal transportation schedindex (1924 = 100) converted to a 1930 base. France: Statistique Generate; monthly indexes partially adjusted for seasonal ules. Unemployment in the building trades variation; 1928 = 100; latest figure, June 1939 (preliminary); old index on 1913 base has been converted to a 1928 base. income, increased consumer buying stimu- PRINCIPAL CHANGES IN UNEMPLOYMENT IN THE lated the production of automobiles and other UNITED KINGDOM, AUGUST 14-OCTOBER 16,1939 goods for final consumption. Expansion of [In number of persons] plant and equipment was accompanied by in- Increases Decreases creased activity in the industrial machinery and iron and steel industries. Employment Service trades... — 133, 700 Heavy manufacturing Building 26,800 and mining 56,400 increased, not only in industry but also in Printing, etc 20,400 Textiles, apparel, and Motor vehicle, cycle, air- other light manufacturretail distribution, entertainment, and other craft; road transport 13,300 ing 43,100 Dock and harbor 9,500 Public works 10,900 service occupations. House furnishings manufacture 7,300 During the later phases of the recovery Total.. 1211,000 Total.. 110,400 economic activity in England was heightened by an accelerated rate of government expendi- 1 An additional net increase of 98,000 in unemployment largely represented persons seeking work for the first time. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1939 FEDERAL RESERVE BULLETIN 1047 increased substantially, and some manufac- wool manufacturing concerns are relatively turing industries, particularly those catering well occupied. to the final consumer, such as house-furnish- Little information is available concerning ings and motor-cars, also showed a higher economic developments in France in recent months. Before the outlevel of unemployment. The level for manu- French economic break Of War, however, profacturing as a whole was reduced, however. developments . , Unemployment also declined in public works ductive activity was at a contracting, coal mining, national governhigh level, as shown on the chart on page ment service, and public utilities. Some of 1046. For nearly a year the volume of prothese reductions reflected seasonal influences, duction in France had been rising, a developbut for the most part they were connected ment that was in large measure associated with the speeding up of military preparawith increased military expenditure. Such tions. The figures reveal clearly the early expenditure in 1938 was half again as large shift of economic activity in the United Kingas in 1937, and appropriations for 1939 bedom away from the satisfaction of ordinary fore the outbreak of war, amounting to some peace-time wants and toward fulfillment of 50,000,000,000 francs, were more than twice war-time needs. They indicate no less clearly the 1937 figures. Following the commencethe difficulties connected with this process. ment of hostilities in Europe the French Par- Publication of many of the statistics re- liament appropriated an additional 69,000,flecting business conditions in the United 000,000 francs for the armed forces. Kingdom has been discontinued. In many Partly as a result of mobilization, and lines, as indicated by the unemployment partly as a result of increased armament figures, the disruption of normal activity was activity, labor shortages have developed and serious and not quickly overcome. In other it has been found necessary to issue a numlines, however, there was little if any serious ber of regulations governing hours, wages, interruption to work, and reports from in- and employment. In this respect the ecodustrial centers indicate that output has ex- nomic measures taken in France differ subpanded during recent weeks. Production of stantially from those in the United Kingdom, steel was at approximately the rated capacity where the settlement of questions concerning of the industry last May, and remained at rates of pay, hours, and mobility of labor has very nearly this level through July, the latest been left largely to negotiation between month for which figures are available. Re- workers and employers. In other respects ports from leading steel areas are to the the French controls are broadly similar to effect that output has recently reached new those in Great Britain; strict control over high levels. Presumably in recognition of an imports and exports has been instituted, actual or potential shortage of supplies for prices have been fixed, and the production the steel industry the government removed and distribution of commodities is regulated the 33% per cent duty on pig iron in October. in various ways. Similar action was taken in 1937 and reversed Exports from the United States, as shown in 1938. Manufacturers of industrial ma- on the chart, increased sharply during Sepchinery and electrical equipment are reported tember and October, the first to be exceptionally busy. In some cases un-United States j- th of war in Europe. wo mon s employment has been eliminated and the labor foreign trade ^ The rise was partly seasonal, unions have agreed to permit additional but it carried the figures well over those for workers to be brought into the industry in a year previous. No such increase occurred order not to hamper production. The chemiin the initial war months in 1914. Exports cal industry is also active, and cotton and in August of that year declined sharply, and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1048 FEDERAL RESERVE BULLETIN DECEMBER 1939 in September they recovered only to the July the steady expansion that began in the sumlevel. It was not until December, following mer of 1938, while shipments of chemicals the reorganization of disrupted shipping and coal in September and October were subschedules and the reopening or establishment stantially higher than in the preceding two of business connections, that exports exceeded months. Other leading exports such as mathose of the previous year. chinery and petroleum products were well maintained at the high levels reached during FOREIGN TRADE OF THE UNITED STATES recent years of war preparation abroad, but MILLIONS OF DOLLARS MILLIONS OF DOLLARS 350 350 shipments of aircraft declined sharply owing to the arms embargo and were $9,000,000 less 300 300 than at the peak reached in August. There were small increases in exports of a wide list of manufactured commodities. Most of the increase in exports to the United Kingdom that occurred in September was lost in the following month and shipments to France remained at the relatively 150 150 low September level. Exports to Canada rose sharply in both months, however, reaching a 100 level higher than in any recent year. During September and October together the principal neutral countries to which increased quantities of American goods were shipped were Italy, the Netherlands, Norway, Sweden, and Russia in Europe; Brazil, Colombia, -50 1937 1938 1939 Cuba, Mexico, and Venezuela in Latin Amer- General imports and exports, including reexports. ica ; and Japan. Raw cotton exports have shown by far Industrial activity in the United States, the largest current increase. The rise was which increased sharply with outbreak of largely seasonal, but to some extent it re- the war in Europe, rose flected the replenishment of low stocks in Recent business somewhat further in Noforeign countries and the operation of the SstTtes in vember and in many lines Federal Government's export subsidy pro- was close to capacity levels. gram, which went into effect late last sum- The Board's seasonally adjusted index of inmer. Exports of cotton in September and dustrial production in November is estimated October were $38,000,000 larger than in the at about 125 per cent of the 1923-1925 aversame months of 1938, when shipments were age as compared with 120 in October, 111 in unusually low. Shipments of tobacco, on the September, and 103 in August. In the steel other hand, were $37,000,000 less than in industry output of ingots and of many finished 1938. Except for preserved fruits, which in- products was the largest on record and in most creased, and fresh fruits, which declined, ex- steel-consuming industries there were marked ports of most other agricultural commodities increases in activity. Automobile production changed only slightly. reached high levels except at plants of one Among industrial products, exports of major producer whose production had been automobiles rose sharply in October, as is curtailed since early October by an industrial customary following the introduction of new dispute. Output of textiles, petroleum prodmodels. Exports of iron and steel continued ucts, and electricity continued at high levels Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1939 FEDERAL RESERVE BULLETIN 1049 reached earlier. On the railroads, shipments pared with the highest point of 2.78 per cent declined less than seasonally, following con- late in September and with an all-time low of siderable advances in September and October, 2.26 per cent on June 5. Yields on Treasury and were at about the level reached in the notes moved similarly during this period, spring of 1937. In the construction indus- averaging 0.60 per cent for 3-to-5 year notes try, the effects of the war have not been on November 25, compared with 0.35 per cent marked. Contracts for private construction, on June 5. both residential and non-residential, continued In pursuance of the System's policy of enin September and October close to the highest deavoring to maintain orderly conditions in levels of the year. Awards for public projects the market, Federal Reserve bank holdings of declined sharply in October. Wholesale com- Treasury bonds and notes and guaranteed modity prices generally showed little change obligations, which had been increased by in November and were close to the advanced about $475,000,000 during the period of the levels reached in the early part of September. price decline in September, were reduced by Prices of some industrial materials, such as about $45,000,000 during the two weeks endsteel scrap and wool, continued to decline ing November 22. System holdings of Treasfrom previous high levels while cotton ad- ury bills, as they mature every week, have vanced. been replaced on only few occasions since Prices of United States Government securi- June 21, and the System's portfolio of such ties have increased and yields have declined bills declined from $477,000,000 on that date substantially during the to $77,000,000 on November 22. About half Government f- f- ths, following of this decline has occurred since September pas WQ mon security market ^ . - , / . -. -IT 20. The net result has been that total holda period of sharp declines ings of Government securities in the System in prices and of a rapid rise in yields after the Open Market Account declined from a peak outbreak of the war. On November 25, the of $2,826,000,000 on September 20 to $2,593,yield on the longest-term Treasury bond 000,000 on November 22. issue outstanding was 2.45 per cent, com- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1050 FEDERAL RESERVE BULLETIN DECEMBER 1939 NATIONAL SUMMARY OF BUSINESS CONDITIONS [Compiled November 16 and released for publication November 18] Rapid expansion of industrial output con- considerably in September, continued in extinued in October, and employment and pay- ceptionally large volume. Activity in the rolls increased considerably. Distribution machinery and shipbuilding industries and of commodities to consumers, which had in- in most other steel-consuming lines rose in creased in September, was maintained at October but by a considerably smaller amount the higher level in October. In the first half than output of steel. In the automobile inof November industrial activity increased dustry, however, output showed less than the further but, with production in many indus- marked rise usual at this season. This was tries approaching capacity, the advance was due to the fact that plants of one large proless rapid than in earlier months. Commodity ducer were closed during most of the month prices generally showed little change during by an industrial dispute. Mineral produc- October and the first half of November, fol- tion in October was at record levels owing lowing the sharp rise in September. chiefly to a high rate of crude petroleum Production.—Volume of industrial pro- output. duction showed a further sharp rise in Oc- In the nondurable goods industries activity tober and the Board's seasonally adjusted was generally maintained at the high levels index advanced from 111 to 120 per cent of reached in August and September. Flour the 1923-1925 average. Marked increases production declined sharply, however, folin activity were reported in the steel and lowing an exceptionally large volume of outsteel-consuming industries and at mines. In put in September. the steel industry ingot production in Octo- Value of construction contracts, as reber was at a rate of 90 per cent of capacity ported by the F. W. Dodge Corporation, deand actual volume of output was the greatest creased considerably in October, reflecting principally a reduction in awards for public MANUFACTURING PRODUCTION construction. Private residential contracts POINTS IN TOTAL INDEX POINTS IN TOTAL INI 140 continued in substantial volume while awards for commercial and industrial building declined somewhat following increases in the previous month. Employment.—Reports from leading industrial States indicate that factory employment and payrolls increased sharply between the middle of September and the middle of October. Increases were particularly large at steel mills and in related industries. There 1934 1935 1936 1937 1938 1939 was also a considerable increase in employ- Index of physical volume of production, adjusted for seasonal ment on the railroads in October. variation, 1923-1925 average = 100. Durable and nondurable series expressed in terms of points in the total index. By months, Distribution.—Retail distribution of gen- January 1934 to October 1939. eral merchandise in October showed about for any month on record. Some further the usual seasonal rise from the advanced increase in the rate of output was reported September level. In the early part of Noin the first half of November. Pig iron pro- vember department store sales increased duction also advanced sharply and lake ship- considerably. ments of iron ore, which had increased Freight-car loadings rose further from Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1051 DECEMBER 1939 FEDERAL RESERVE BULLETIN September to October, reflecting a large in- Bank credit.—Total loans and investments crease in shipments of miscellaneous freight, at reporting member banks in 101 leading which includes most manufactured products, cities increased substantially during the six and smaller increases in loadings of coal, weeks ending November 8, reflecting largely forest products, and ore. purchases of Treasury bills by New York City WHOLESALE PRICES PER CENT MEMBER BANKS IN 101 LEADING CITIES 110 — no BILLIONS OF DOLLARS BILLIONS OF DOLLARS " 12 100 100 10 "S 90 90 U.S. GOVTOBLIGATIONS 8 ( niRECT AN) GUARANTEED ) 80 80 6 70 70 COMMERCIAL LOANS 4 60 60 OTHER SECURITIES 2 j 50 LOANS TO BROKERS^"" 1934 1935 1936 1937 1938 0 AND DEALERS '34 1935 1938 1939 Index compiled by the United States Bureau of Labor Statistics, 1926=100. By weeks, 1934 to week ending November 11, 1939. Wednesday figures for reporting member banks in 101 leading cities, September 5, 1934, to November 15, 1939. Commercial loans, which include industrial and agricultural loans, represent prior Commodity prices.—Price changes that to May 19, 1937, so-called "Other loans" as then reported. have occurred since the general sharp rise in September have reflected largely particular banks. Commercial loans continued to show developments in individual commodities. moderate increases. Deposits at these banks From the middle of October to the middle of rose to new high levels. November prices of a number of foodstuffs continued to decline and there were also de- MONEY RATES IN NEW YORK CITY creases in some industrial materials, such as print cloths, wool, tin, and steel scrap. Wheat, cotton, and burlap advanced somewhat while prices of most other commodities, including finished industrial products, showed little change. Government security prices.—Following a sharp recovery from the low of September 21, prices of United States Government bonds showed irregular changes during the period from October 24 through the first half of 1934 1935 1936 1937 1938 1939 November. On November 15 yields on long- Minimum rate on rediscounts for and advances to member banks by Federal Reserve bank; weekly averages of daily yields on 3- to term Treasury bonds were at 2.47 per cent as 5-year Treasury notes and Treasury bonds callable after 12 years, and average discount on new issues of 91-day Treasury bills offered compared with 2.79 per cent on September 21. within week. For weeks ending January 6, 1934, to November 18, 1939. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1052 FEDERAL RESERVE BULLETIN DECEMBER 1939 MEMBER BANK RESERVES AND RELATED ITEMS BILLIONS OF DOLLARS WEDNESDAY FIGURES 16 TREASURY DEPOSITS AT F. R. BANKS 1934 1935 1936 1937 1939 Latest figures for November 15. See p. 1096. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1939 FEDERAL RESERVE BULLETIN 1053 SUMMARY OF FINANCIAL AND BUSINESS STATISTICS 1939 1938 Annual averages Oct. Sept. Aug. Oct. Sept. Aug. 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 ... 2,832 2,794 2,467 2,598 2,610 2,590 2,600 2,554 2,481 2,475 2,429 1,459 Bills discounted 6 g g g 9 14 283 952 Bills bought 1 1 1 1 1 1 3 4 5 83 241 U. S. Government securities 763 2,732 2,437 2,564 2,572 2,564 2,565 2,540 2,430 2,431 2,052 208 Gold stock __ 17,002 16,823 16,390 13,940 13,441 13,057 13, 25012,162 10, 578 9,059 4,059 3,996 Treasury currency outstanding 2,926 2,911 2,900 2,745 2,733 2,724 2,711 2,567 2,503 2,478 2,271 2,015 Money in circulation 17, 328 7,249 7,098 6,668 6,570 6,482 6,510 6,475 6,101 5,585 5,576 4,476 Treasury cash holdings 2,239 2,253 2,344 2,782 2,717 2,392 2,804 3,225 2,474 2,791 288 207 Treasury deposits with F. R. banks 358 611 783 665 704 774 653 158 446 128 55 22 Nonmember deposits and other F. R. accounts 972 972 872 622 598 606 658 595 551 507 497 406 Member bank reserve balances: Total 11,862 11,443 10,659 8,546 8,196 8,119 7,935 6,830 5,989 5,001 2,343 2,358 • Excess _ 5,490 5,198 4,607 3,143 2,920 2,955 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 22,571 22,384 22,327 21, 32321,078 20, 675 21,023 22,198 22,064 19,997 17, 505 22 599 Loans—total 8,421 8,322 8,179 8,282 8,268 8,215 8,506 9,546 8,462 8,028 9,156 16* 887 Commercial, industrial and agricultural 4,279 4,166 3,930 3,904 3,893 3,886 4,059 0) 0) 0) ' 0) 0) T O o t h b e r r o l k o e a r n s s a f n o d r p d u e r a c l h e a rs s i i n n g s o e r c u c r a i r t r ie y s ing securities.. 5 5 5 0 2 5 5 51 6 1 8 6 52 4 1 2 6 5 6 7 9 6 6 5 7 7 5 8 6 5 3 7 6 7 7 5 0 8 1 8 1 0 ,2 ) 26 1 0 ,1 ) 81 0 9 ) 90 0 7 ) 77 •2 0 , ) 208 All other loans 3,085 3,077 3,086 3,133 3,122 3,116 3,158 0) 0) 0) 0) 0) Investments—total 14,150 14,062 14,148 13,041 12,810 12,460 12, 51712,652 13,602 11,969 8,349 U. S. Government direct obligations 8,566 8,467 8,537 8,084 7,957 7,702 7,982 8,394 9,080 7,989 5,228 5,712 Obligations fully guaranteed by U. S. Govt 2,232 2,226 2,265 1,682 1,668 1,646 1,451 1,164 1,250 928 2,865 Other securities 3,352 3,369 3,346 3,275 3,185 3,112 3,084 3,094 3,272 3,052 3,121 2,847 Reserve with Federal Reserve banks 9,957 9,643 8,951 7,005 6,712 6,602 6,400 5,307 4,799 4,024 1,822 1,725 Cash in vault _. 482 477 440 425 416 387 382 337 383 326 240 248 B D a e l m an a c n e d s d w e i p th o s d it o s— me a s d t j i u c s b te a d nks 1 3 8 , , 0 5 6 1 2 1 18 2 , , 9 2 5 0 1 91 2 7, , 8 7 0 1 8 7 1 2 5, , 4 6 4 8 6 81 2 5 , , 4 3 1 7 3 7 1 2 5 , ,1 4 1 1 8 6 1 2 5 , , 2 0 8 33 9 1 1 5 , ,0 8 9 8 7 4 1 2 4, , 3 6 5 1 8 912 2 , , 1 7 1 2 2 9 1 0 ,3 ) 22 C 11, ) 142 T D i e m po e s d it e s p o o 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 7 , , 2 8 5 4 4 5 7 5 , , 5 2 7 4 3 3 7 5 , , 1 2 1 5 8 9 6 5 , ,1 1 6 2 4 2 5 5 , , 2 9 1 7 3 4 5 5 , , 2 9 0 2 6 0 5 5 , , 7 2 7 0 0 2 5 5 , , 2 2 9 0 8 2 4 5 , , 9 8 9 1 9 0 4 4 , , 8 9 8 3 3 8 4 2 , , 9 8 4 2 6 2 2 6 , , 7 7 8 8 7 8 Borrowings . 1 1 7 1 1 3 12 5 6 115 674 MONEY RATES AND BOND YIELDS Averages of daily figures; per cent per annum Commercial paper .69 .69 .56 .75 .81 .75 .76 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 U . . S S . . T T r r e e a a s s u u r r y y b b i o l n ls d s (9 , 1 lo d n a g y - s t ) erm 2 . . 0 6 5 0 2 . . 1 6 4 5 2 . . 0 2 5 1 2 . . 0 4 5 8 2.58 2 . . 0 5 6 1 2 . . 0 5 7 6 2 . .6 2 8 8 2 . . 1 6 7 5 2 . . 1 7 7 9 3.31 3.60 Corporate high grade bonds (Moody's Aaa). 3.15 3.25 2.93 3.15 3.21 3.18 3.19 3.26 3.24 3.60 4.49 4.73 CAPITAL ISSUES Amounts per month;in millions of dollars All issues—total 740 174 '450 766 238 417 '371 328 518 392 89 959 New __. 336 41 »103 167 146 182 197 178 164 121 60 841 Refunding 404 133 "'•347 599 92 236 '174 150 354 270 29 118 Domestic corporate issues—total.. 176 90 '327 338 150 338 178 203 382 189 32 781 New 18 16 '26 64 85 127 73 102 99 34 . 13 667 Refunding 157 74 ••301 274 65 211 '105 101 282 155 18 115 PRICES Index numbers Common stocks (1926=100) 92 86 91 86 90 83 112 111 78 63 190 Wholesale commodity prices (1926=100): All commodities 79 75 78 78 78 79 86 81 80 66 95 Farm products 69 61 67 68 67 69 86 81 79 51 105 Foods 75 67 74 75 73 74 86 82 84 61 100 Other commodities 82 80 81 81 81 82 85 80 78 71 92 Retail food prices (1923-25=100) 79 75 78 79 78 79 85 82 81 66 105 BUSINESS INDEXES Index numbers, adjusted for seasonal variation, 1923-25=100 Industrial production 111 103 96 90 88 86 110 105 90 76 119 Manufactures P120 111 104 95 89 87 84 109 105 90 75 119 Minerals P122 114 91 98 97 95 98 116 105 91 82 115 Construction contracts awarded—total.. P77 73 73 82 78 66 64 59 55 37 25 117 Residential P67 68 67 57 56 53 45 41 37 21 11 87 Allother. P84 76 78 102 96 77 80 74 70 50 37 142 Factory employment.._ __ PIOI 97 96 90 89 88 90 109 99 91 73 106 Factory payrolls (unadjusted) _ P101 94 90 84 82 77 78 103 86 74 50 110 Freight-car loadings. 80 77 70 68 64 62 62 78 75 64 58 107 Department store sales. 90 91 89 84 86 83 85 92 88 79 67 111 MERCHANDISE EXPORTS AND IMPORTS Amounts per month; in millions of dollars Exports, including re-exports. 289 251 278 246 231 258 279 205 190 140 437 General imports 181 176 178 168 166 163 257 202 171 121 367 * Less than $500,000. p Preliminary. ' Revised. • Partly estimated. 1 Figures not available. 2 Includes time deposits of banks, domestic and foreign, 1929-1933. » Does not include time deposits, 1929-1933. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1054 FEDERAL RESERVE BULLETIN DECEMBER 1939 LAW DEPARTMENT Financial Transactions under Neutrality Act of 1939 section 11. Inquiries received from time to The President of the United States on No- time have indicated that in some instances vember 4, 1939, issued a proclamation under the best interests of trusts might be better authority of section l(a) of the Neutrality served if the requirements were somewhat Act of 1939 (Pub. Res. No. 54, 76th Cong.), more flexible. Accordingly, transactions have approved November 4,1939, proclaiming that been excepted from such requirements where a state of war exists between Germany and specifically authorized by court order. This France; Poland; and the United Kingdom, exception has been incorporated in the regu- India, Australia, Canada, New Zealand and lation by substituting for the last sentence of the Union of South Africa. In this connec- footnote 12 the following footnote applicable tion, section 7 of the Neutrality Act, relating to the entire section 11: to financial transactions, provides as follows: The requirements of this section shall not be deemed to prohibit the making of any invest- FINANCIAL TRANSACTIONS ments or the carrying out of any transactions "SEC. 7 (a) Whenever the President shall which are expressly required by the instrument have issued a proclamation under the authority creating the trust or are specifically authorized of section 1 (a), it shall thereafter be unlawful by court order. for any person within the United States to pur- For the purpose of clarification, the first chase, sell, or exchange bonds, securities, or other obligations of the government of any state sentence of footnote 12 has been revised and named in such proclamation, or of any political incorporated as a footnote appended to the subdivision of any such state, or of any person acting for or on behalf of the government of word "interests" in subsections (a) and (b) any such state, or political subdivision thereof, of section 11, to read as follows: issued after the date of such proclamation, or to make any loan or extend any credit (other Under recognized principles of sound practice than necessary credits accruing in connection regarding the handling of trust assets, a trustee with the transmission of telegraph, cable, wireor other fiduciary should not have any interest, less and telephone services) to any such governdirect or indirect, in the assets of a trust exment, political subdivision, or person. The cept as a fiduciary; and the requirements of this provisions of this subsection shall also apply to section contemplate that the national bank will the sale by any person within the United States not invest trust funds in the stock or obligations to any person in a state named in any such of, or property acquired from, any organization proclamation of any articles or materials listed in which officers, directors, or employees of the in a proclamation referred to in or issued under bank have such an interest as might affect the the authority of section 12 (i). exercise of the best judgment of the manage- (b) The provisions of this section shall not ment of the bank in investing trust funds and apply to a renewal or adjustment of such in- that the national bank will not sell or transfer debtedness as may exist on the date of such trust assets to any organization in which the proclamation. officers, directors, or employees of the bank (c) Whoever shall knowingly violate any of have such an interest as might affect the exerthe provisions of this section or of any regula- cise of the best judgment of the management of tions issued thereunder shall, upon conviction the bank in selling or transferring trust assets. thereof, be fined not more than $50,000 or imprisoned for not more than five years, or both. In order to conform with amendments to Should the violation be by a corporation, or- Internal Revenue laws, the words "Revenue ganization, or association, each officer or director thereof participating in the violation shall Act of 1936" where they appear in section be liable to the penalty herein prescribed. 17(a), the footnote thereto, and in the stat- (d) Whenever any proclamation issued under the authority of section 1 (a) shall have been utes in the Appendix, have been changed to revoked with respect to any state the provisions of this section shall thereupon cease to apply read "Internal Revenue Code"; and the approwith respect to such state, except as to offenses priate sections of the Internal Revenue Code committed prior to such revocation. have been substituted in the Appendix for the sections of the Revenue Act of 1936. Amendments to Regulation F Regulation F, relating to trust powers of national banks, was amended effective No- Amendments to Regulation H vember 20, 1939. The only substantive Regulation H, relating to membership of amendment relates to the requirements of State banking institutions in the Federal Re- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1939 FEDERAL RESERVE BULLETIN 1055 serve System, was amended in minor respects SECTION 1. DEFINITIONS effective November 20,1939, and reprinted to For the purposes of this regulation— incorporate such amendments and one pre- (a) The term "State bank" means any bank or trust company incorporated under a special or genviously adopted. The amendment of Regulaeral law of a State or under a general law for the tion H was prompted primarily by the repeal District of Columbia, any mutual savings bank (unless otherwise indicated), and any Morris Plan bank of the requirement in subsection (y) of secor other incorporated banking institution engaged in tion 12B of the Federal Reserve Act that State similar business.1 banks having deposits of $1,000,000 or more (b) The term "mutual savings bank" means a bank without capital stock transacting a savings become members of the Federal Reserve Sys- bank business, the net earnings of which inure wholly tem. The text of the regulation is set forth to the benefit of its depositors after payment of obligations for any advances by its organizers, and in below: addition thereto includes any other banking institution the capital of which consists of weekly or other REGULATION H time deposits which are segregated from all other As amended, effective November 20, 1939 deposits and are regarded as capital stock for the purposes of taxation and the declaration of dividends. MEMBERSHIP OF STATE BANKING (c) The term "Board" means the Board of Gov- INSTITUTIONS IN THE FEDERAL ernors of the Federal Reserve System. RESERVE SYSTEM (d) The term "board of directors" means the governing board of any institution performing the usual CONTENTS functions of a board of directors. (e) The term "Federal Reserve bank stock" in- AUTHORITY FOR REGULATION cludes the deposit which may be made with a Federal SEC. 1. DEFINITIONS (a) State bank Reserve bank in lieu of a subscription for stock by (b) Mutual savings bank a mutual savings bank which is not permitted to (c) Board purchase stock in a Federal Reserve bank, unless (d) Board of directors (e) Federal Reserve bank stock otherwise indicated. (f) Capital and capital stock (/) The terms "capital" and "capital stock" mean SEC. 2. ELIGIBILITY REQUIREMENTS common stock, preferred stock, and legally issued SEC. 3. INSURANCE OF DEPOSITS capital notes and debentures purchased by the Re- SEC. 4. APPLICATION FOR MEMBERSHIP construction Finance Corporation which may be (a) State bank, other than a mutual savings bank considered capital and capital stock for purposes of (b) Mutual savings bank (c) Mutual savings bank not authorized to purchase membership in the Federal Reserve System under stock of Federal Reserve bank at time of ad- the provisions of section 9 of the Federal Reserve mission Act. (d) Execution and filing of application SECTION 2. ELIGIBILITY REQUIREMENTS SEC. 5. APPROVAL OF APPLICATION (a) Matters given special consideration by Board Under the terms of section 9 of the Federal Reserve (b) Procedure for admission to membership after ap- Act, as amended, to be eligible for admission to memproval of application bership in the Federal Reserve System— SEC. 6. CONDITIONS OF MEMBERSHIP (1) A State bank, other than a mutual savings (a) Conditions applicable to all institutions applying bank, must possess a paid-up, unimpaired2 capifor membership (b) Conditions applicable to institutions exercising 1 Under the provisions of section 19 of the Federal Reserve Act, trust powers national banks, or banks organized under local laws, located in SEC. 7. POWERS AND RESTRICTIONS Alaska or in a dependency or insular possession or any part of the SEC. 8. ESTABLISHMENT OR MAINTENANCE OF BRANCHES United States outside the continental United States are not re- (a) In general quired to become members of the Federal Reserve System but may, (b) Branches in the United States with the consent of the Board, become members of the System. (c) Application for approval of branches in United However, this Regulation H is applicable only to the admission of States banks eligible for admission to membership under section 9 of the (d) Foreign branches Federal Reserve Act and does not cover the admission of banks (e) Application for approval of foreign branches eligible under section 19 of the Act. Any bank desiring to be admitted to the System under the provisions of section 19 should SEC. 9. PUBLICATION OF REPORTS OF MEMBER BANKS AND THEIR communicate with the Federal Reserve bank with which it desires AFFILIATES to do business. (a) Reports of member banks 2 Section 345 of the Banking Act of 1935 provides in part that: (b) Reports of affiliates "If any part of the capital of a national bank, State member bank, SEC. 10. VOLUNTARY WITHDRAWAL FROM FEDERAL RESERVE SYSTEM or bank applying for membership in the Federal Reserve System (a) General consists of preferred stock, the determination of whether or not (b) Notice of intention of withdrawal the capital of such bank is impaired and the amount of such im- (c) Time and method of effecting actual withdrawal pairment shall be based upon the par value of its stock even (d) Withdrawal of notice though the amount which the holders of such preferred stock shall SEC. 11. BOARD FORMS be entitled to receive in the event of retirement or liquidation APPENDIX shall be in excess of the par value of such preferred stock. If any AUTHORITY FOR REGULATION such bank or trust company shall have outstanding any capital notes or debentures of the type which the Reconstruction Finance This regulation is based upon and issued pur- Corporation is authorized to purchase pursuant to the provisions of section 304 of the Emergency Banking and Bank Conservation suant to provisions of section 9 of the Federal Act, approved March 9, 1933, as amended, the capital of such bank Reserve Act and related provisions of law. (Section may be deemed to be unimpaired if the sound value of its assets is 9 of the Federal Reserve Act is printed in the not less than its total liabilities, including capital stock, but excluding such capital notes or debentures and any obligations of Appendix.) the bank expressly subordinated thereto." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1056 FEDERAL RESERVE BULLETIN DECEMBER 1939 tal sufficient to entitle it to become a national SECTION 4. APPLICATION FOR MEMBERSHIP banking association in the place where it is situated under the provisions of the National Bank (a) State bank, other than a mutual savings bank. Act, except in the following circumstances, in —A State bank, other than a mutual savings bank, which case such a bank may be admitted to mem- applying for membership, shall make application on bership with a lesser capital as indicated: Form 83A to the Board for an amount of capital stock in the Federal Reserve bank of its district (A) Any such institution organized prior equal to six per cent of the paid-up capital stock and to June 16, 1933 (the date of the approval of surplus of the applying institution. the Banking Act of 1933) situated in a place (b) Mutual savings bank.—A mutual savings bank the population of which does not exceed 3,000 applying for membership shall make application on inhabitants and at the time of admission hav- Form 83B to the Board for an amount of capital ing a capital of not less than $25,000; stock in the Federal Reserve bank of its district (B) Any such institution (whether or not equal to six-tenths of one per cent of its total .deposit organized prior to June 16, 1933) situated in liabilities as shown ]by the most recent report of a place the population of which does not ex- examination of such institution preceding its admisceed 3,000 inhabitants and which at the time sion to membership, or, if such institution be not perof admission is entitled to the benefits of in- mitted by the laws under which it was organized to surance under section 12B of the Federal purchase stock in a Federal Reserve bank, on Form Reserve Act and has a capital of not less than 83 C, for permission to deposit with the Federal $25,000. Reserve bank an amount equal to the amount which it would have been required to pay in on account of (2) A mutual savings bank must possess sur- a subscription to capital stock. plus and undivided profits not less than the (c) Mutual sayings bank not authorized to puramount of capital required for the organization chase stock of Federal Reserve bank at time of adof a national bank in the place where it is situated. mission.—If a mutual savings bank be admitted to (3) The minimum capital required for the or- membership on the basis of a deposit of the required ganization of a national bank, referred to herein- amount with the Federal Reserve bank in lieu of before in connection with the capital required for payment upon capital stock because the laws under admission to membership in the Federal Reserve which such bank was organized do not at that time System, is as follows: authorize it to purchase stock in the Federal Reserve bank, it shall subscribe on Form 83D for the appropriate amount of stock in the Federal Reserve bank whenever such laws are amended so as to Minimum authorize it to purchase stock in a Federal Reserve If located in a city or town with a population- Capital bank.4 (d) Execution and filing of application.—Each ap- Not exceeding 6,000 inhabitants plication made under the provisions of this section Exceeding 6,000 but not exceeding 50,000 inhabitants Exceeding 50,000 inhabitants (except as stated below) and the exhibits referred to in the application blank In an outlying district of a city with a population exceeding shall be executed and filed, in duplicate, with the 50,000 inhabitants; provided State law permits organiza- Federal Reserve bank of the district in which the tion of State banks in such location with a capital of $100,000 or less _..._ applying bank is located. SECTION 5. APPROVAL OF APPLICATION SECTION 3. INSURANCE OF DEPOSITS (a) Matters given special consideration by Board. —In passing upon an application, the following mat- Any State bank becoming a member of the Federal ters will be given special consideration: Reserve System after the date of the enactment of the Banking Act of 1935 (August 23, 1935) and (1) The financial history and condition of the which is not at the time an insured bank under the applying bank and the general character of its provisions of section 12B of the Federal Reserve Act, management; will become an insured bank under the provisions of (2) The adequacy of its capital structure and that section on the date upon which it becomes a its future earnings prospects; member of the Federal Reserve System.3 In the (3) The convenience and needs of the comcase of an insured bank which is admitted to memmunity to be served by the bank; and bership in the Federal Reserve System, the bank will continue to be an insured bank. (4) Whether its corporate powers are consistent with the purposes of the Federal Reserve 3 In the case of a State bank which at the time of its admission Act. to membership in the Federal Reserve System is not an insured bank, the Board is required under the provisions of subsections 4 The Federal Reserve Act provides that, if the laws under (e) and (g) of section 12B of the Federal Reserve Act to issue a which any such savings bank was organized be not amended at certificate to the Federal Deposit Insurance Corporation to the the first session of the legislature following the admission of the effect that the bank is a member of the Federal Reserve System savings bank to membership so as to authorize mutual savings and that consideration has been given to the financial history and banks to purchase Federal Reserve bank stock, or if such laws be condition of the bank, the adequacy of its capital structure, its so amended and the bank fail within six months thereafter to future earnings prospects, the general character of its manage- purchase such stock, all of its rights and privileges as a member ment, the convenience and needs of the community to be served by bank shall be forfeited and its membership in the Federal Reserve the bank, and whether or not its corporate powers are consistent System shall be terminated in the manner prescribed in section 9 with the purposes of section 12B of the Federal Reserve Act. of the Federal Reserve Act. 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1057 DECEMBER 1939 FEDERAL RESERVE BULLETIN (6) Procedure for admission to membership after posit liabilities and other corporate responsibiliapproval of application.—If an applying bank con- ties,7 and its capital8 shall not be reduced except forms to all the requirements of the Federal Reserve with the permission of the Board of Governors Act and this regulation and is otherwise qualified for of the Federal Reserve System.9 membership, its application will be approved subject 3. Such bank shall not engage as a business to such conditions as may be prescribed pursuant to in issuing or selling either directly or indirectly the provisions of the Federal Reserve Act. When the (through affiliated corporations or otherwise) conditions prescribed have been accepted by the apply- notes, bonds, mortgages, certificates, or other ing bank, it should pay to the Federal Reserve bank evidences of indebtedness representing real esof its district one-half of the amount of its subscrip- tate loans or participations therein, either with tion and, upon receipt of advice from the Federal or without a guarantee, indorsement, or other Reserve bank as to the required amount, one-half of obligation of such bank or an affiliated corporaone per cent of its paid-up subscription for each tion.10 month from the period of the last dividend.5 The remaining half of the bank's subscription shall be (b) Conditions applicable to institutions exercising subject to call when deemed necessary by the Board. trust powers.—The Board will also prescribe for each The bank's membership in the Federal Reserve Sys- trust company or State bank exercising trust powers tem shall become effective on the date as of which a at the time of its admission to membership the folcertificate of stock of the Federal Reserve bank is lowing conditions of membership which are approissued to it pursuant to its application for member- priate for institutions exercising trust powers: ship or, in the case of a mutual savings bank which is 4. Such bank shall not invest funds held by not authorized to subscribe for stock, on the date as it as fiduciary in stock or obligations of, or propof which a certificate representing the acceptance of a erty acquired from, the bank or its directors, deposit with the Federal Reserve bank in place of a officers, or employees, or their interests, or in payment on account of a subscription to stock is stock or obligations of, or property acquired issued to it pursuant to its application for member- from, affiliates of the bank.11 ship. 5. Such bank, except as permitted in the case of national banks exercising fiduciary powers, SECTION 6. CONDITIONS OF MEMBERSHIP shall not invest collectively funds held by the bank as fiduciary and shall keep the securities (a) Conditions applicable to all institutions applyand investments of each trust separate from ing for membership.—Pursuant to the authority those of all other trusts12 and separate also from contained in the first paragraph of section 9 of the the properties of the bank itself.13 Federal Reserve Act, which authorizes the Board to permit applying State banks to become members 6. If funds held by such bank as fiduciary are of the Federal Reserve System "subject to the pro- deposited in its commercial or savings departvisions of this Act and to such conditions as it may ment or otherwise used in the conduct of its prescribe pursuant thereto," the Board, except as hereinafter stated, will prescribe the following con- 7 If at any time, in the light of all the circumstances, the aggreditions of membership for each State bank hereafter gate amount of the bank's net capital and surplus funds appears to be inadequate, the bank, within such period as shall be deemed applying for admission to the Federal Reserve Sys- by the Board to be reasonable for this purpose, shall increase the tem, and, in addition, such other conditions as may amount thereof to an amount which in the judgment of the Board be considered necessary or advisable in the particular shall be adequate in relation to the bank's aggregate deposit liabilities and other corporate responsibilities. case— 8 This applies to capital stock of all classes and to capital notes and debentures legally issued and purchased by the Reconstruction 1. Such bank at all times shall conduct its Finance Corporation which, under the Federal Reserve Act, are business and exercise its powers with due regard considered as capital for purposes of membership. to the safety of.its depositors, and, except with A reduction in capital, however, shall not be deemed to be contrary to this provision if, at the same time, the capital is correthe permission of the Board of Governors of the spondingly increased or a specific reserve in an amount not less Federal Reserve System, such bank shall not than the amount of the capital reduction is set aside to provide cause or permit any change to be made in the for an increase in capital and can be used for no other purpose; provided, of course, the transaction does not violate any provision general character of its business or in the scope of applicable laws. of the corporate powers exercised by it at the 9 This condition will not be prescribed in connection with the time of admission to membership.6 admission of mutual savings banks to membership in the Federal Reserve System. 2. The net capital and surplus funds of such 10 This condition does not apply to the sale of mortgages covered bank shall be adequate in relation to the char- by insurance under the provisions of the National Housing Act. 11 Under recognized principles of sound practice regarding the acter and condition of its assets and to its de- handling of trust assets, a trustee or other fiduciary should not have any interest, direct or indirect, in the assets of a trust except 5 In the case of a mutual savings bank which is not permitted as a fiduciary; and the condition contemplates that a trust instiby the laws under which it was organized to purchase stock in a tution will not invest trust funds in the stock or obligations of, or Federal Reserve bank, it shall deposit with the Federal Reserve property acquired from, any organization in which officers, direcbank an amount equal to the amount which it would have been tors, or employees of the trust institution have such an interest as required to pay in on account of a subscription to capital stock. might affect the exercise of the best judgment of the management 6 If, after admission of any bank to membership, it should desire of the trust institution in investing trust funds. to make any change in the general character of its business or in The requirements of this condition shall not be deemed to prothe scope of its corporate powers exercised at the time of admis- hibit the making of any investments or the carrying out of any sion, it will be necessary for it to obtain the permission of the transactions which are expressly required by the instrument Board before making any such change. creating the trust or are specifically authorized by court order. The acquisition by a bank of the assets of another institution 12 This does not prevent a bank from investing the funds of sevthrough merger, consolidation, or purchase may result in a change eral trusts in a single real estate loan of the kind which could be in the character of its assets or the scope of its functions within made by a national bank under the provisions of section 24 of the the meaning of condition numbered 1, and if at any time a mem- Federal Reserve Act, as amended, if the bank owns no particiber State bank subject to such condition anticipates making any pation in the loan and has no interest therein except as trustee such acquisition a detailed report setting forth all the facts in or other fiduciary. connection with the transaction should be made promptly to the 13 Requirements relating to collective investment of trust funds Federal Reserve bank of the district in which such bank is located. by national banks are contained in the Board's Regulation F. 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1058 FEDERAL RESERVE BULLETIN DECEMBER 1939 business, it shall deposit with its trust depart- parent bank is situated do not require the apment security in the same manner and to the proval of the Board. same extent as is required of national banks 2. Before a member State bank establishes a exercising fiduciary powers.14 branch beyond the corporate limits of the city, town, or village in which it is situated, it must SECTION 7. POWERS AND RESTRICTIONS obtain the approval of the Board. Every State bank while a member of the Federal 3. Before any nonmember State bank having Reserve System— a branch or branches established after February 25, 1927, beyond the corporate limits of the city, (a) Shall retain its full charter and statutory town, or village in which the bank is situated is rights subject to the provisions of the Federal Readmitted to membership in the Federal Reserve serve Act and other Acts of Congress applicable to System, it must obtain the approval of the Board member State banks, to the regulations of the Board for the retention of such branches; and any made pursuant to law, and to the conditions preprovisions contained in this section of this reguscribed by the Board and agreed to by such bank lation which by their terms relate to the estabprior to its admission; lishment on retention of branches by member (b) Shall enjoy all the privileges and observe all State banks are equally applicable to the retenthe requirements of the Federal Reserve Act and tion by a nonmember State bank applying for other Acts of Congress applicable to member State membership and having any branches previously banks and of the regulations of the Board made pur- established. suant to law which are applicable to member State banks; and 4. A member State bank located in a State which by statute law permits the maintenance (c) Shall comply at all times with any and all conditions of membership prescribed by the Board of branches within county or greater limits may, in connection with the admission of such bank to with the approval of the Board, establish and membership in the Federal Reserve System. operate, without regard to the capital requirements of section 5155 of the Revised Statutes, a seasonal agency in any resort community within SECTION 8. ESTABLISHMENT OR MAINTENANCE the limits of the county in which the main office OF BRANCHES of such bank is located for the purpose of re- (a) In general.—Every State bank which is or ceiving and paying out deposits, issuing and hereafter becomes a member of the Federal Reserve cashing checks and drafts, and doing business System is subject to the provisions of section 9 of incident thereto, if no bank is located and doing the Federal Reserve Act relating to the establish- business in the place where the proposed agency ment and maintenance of branches in the United is to be located; and any permit issued for the States or in a dependency or insular possession establishment of such an agency shall be rethereof or in a foreign country. Under the pro- voked upon the opening of a State or national visions of section 9, member State banks establishing bank in the community where the agency is and operating branches in the United States beyond located. the corporate limits of the city, town, or village in which the parent bank is situated must conform to 5. Except as stated in the immediately prethe same terms, conditions, limitations, and restric- ceding paragraph, a member State bank which tions as are applicable to the establishment of establishes a branch beyond the corporate limits branches by national banks under the provisions of of the city, town, or village in which it is situsection 5155 of the Revised Statutes of the United ated must have a paid-in and unimpaired capi- States relating to the establishment of branches in tal stock of not less than $500,000, except that, the United States, except that the approval of any in a State with a population of less than 1,000,such branches must be obtained from the Board 000, and which has no city located therein with rather than from the Comptroller of the Currency. a population exceeding 100,000, the capital stock Under the provisions of section 9, member State shall be not less than $250,000, and except that, banks establishing and operating branches in a de- in a State with a population of less than 500,pendency or insular possession of the United States 000, and which has no city located therein with or in a foreign country must conform to the terms, a population exceeding 50,000, the capital stock conditions, limitations, and restrictions contained in shall be not less than $100,000. In any such section 25 of the Federal Reserve Act relating to the case, the aggregate capital stock of the member establishment by national banks of branches in such places. The principal applicable provisions of law State bank and its branches shall at no time be have been interpreted as follows: less than the aggregate minimum capital stock required by law for the establishment of an (b) Branches in the United States.— equal number of national banking associations situated in the various places where such mem- 1. Branches established within the corporate ber State bank and its branches are situated. limits of the city, town, or village in which the 6. A member State bank may not establish a 14 Such requirements applicable to national banks are contained branch beyond the corporate limits of the city, in section 11 (k) of the Federal Reserve Act and the Board's Regulation F issued pursuant to section 11 (k). town, or village in which it is situated unless In cases where trust funds are fully protected by a statutory such establishment and operation are at the preference in all of the assets of the bank over its general time authorized to State banks by the statute creditors, the Board may waive compliance with this condition. However, if compliance be waived in any case, the Board expressly law of the State in question by language specifireserves the right to require compliance with the condition if, at cally granting such authority affirmatively and any time, it feels that such trust funds are not adequately pro- not merely by implication or recognition, and tected. 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DECEMBER 1939 FEDERAL RESERVE BULLETIN 1059 subject to the restrictions as to location imposed SECTION 9. PUBLICATION OF REPORTS OF MEMBER BANKS by the law of the State on State banks. AND THEIR AFFILIATES15 7. Any member State bank which, on Febru- (a) Reports of member banks.—Each report of ary 25, 1927, had established and was actually condition made by a member State bank, which is operating a branch or branches in conformity required to be made to the Federal Reserve bank with the State law is permitted to retain and of its district as of call dates fixed by the Board of operate the same while remaining a member Governors of the Federal Reserve System, shall be of the Federal Reserve System, regardless of the published by such member bank within twenty days location of such branch or branches. from the date the call therefor is issued. 8. In order to remain a member of the Federal The report shall be printed in a newspaper pub- Reserve System, every member State bank must lished in the place where the bank is located or, if relinquish any branch or branches established there be no newspaper published in the place where after February 25, 1927, beyond the corporate the bank is located, then in a newspaper published limits of the city, town, or village in which the in the same or in an adjourning county and in general parent bank is situated, unless such branch or circulation in the place where the bank is located. branches are in conformity with or are brought The term "newspaper", for the purpose of this reguinto conformity with the same terms, conditions, lation, means a publication with a general circulation limitations, and restrictions as would be appli- published not less frequently than once a week, one cable in the case of the establishment of such of the primary functions of which is the dissemination branches. of news of general interest. The copy of the report for the use of the printer 9. The removal of a branch from one town to for publication should be prepared on Form 105e. another town constitutes the establishment of a The published information shall agree in every rebranch in such other town within the meaning of spect with that shown on the face of the condition the provisions of the Federal Reserve Act. report rendered to the Federal Reserve bank, except that any item for which no amount is reported may (c) Application for approval of branches in United be omitted in the published statement. All signatures States.—Any member State bank desiring to establish shall be the same in the published statement as in a branch beyond the corporate limits of the city, the original report submitted to the Federal Reserve town, or village in which it is located and any nonbank, but the signatures may be typewritten or othermember State bank applying for membership and wise copied on the report for publication. desiring to retain any branch established after Feb- A copy of the printed report shall be submitted ruary 25, 1927, beyond the corporate limits of the to the Federal Reserve bank attached to the certificity, town, or village in which the bank is situated cate on Form 105e. should submit a request for the approval by the Board of any such branch to the Federal Reserve (b) Reports of affiliates.16—Each report of an afbank of the district in which the bank is located. filiate of a member State bank, including a holding Any such request should be accompanied by advice company affiliate, shall be published at the same as to the scope of the functions and the character time and in the same newspaper as the affiliated of the business which are or will be performed by bank's own condition report submitted to the Fedthe branch and detailed information regarding the eral Reserve bank, unless an extension of time for policy followed proposed to be followed with refer- submission of the report of the affiliate has been ence to supervision of the branch by the head office; granted under authority of the Board of Governors and the bank may be required in any case to furnish of the Federal Reserve System. When such extenadditional information which will be helpful to the sion of time has been granted, the report of the Board in determining whether to approve such re- affiliate must be submitted and published before the quest. expiration of such extended period in the same news- (d) Foreign branches.—Before a member State bank establishes a branch in a foreign country, or 15 Under the provisions of section 9 of the Federal Reserve Act, reports of condition of member State banks which, under that dependency or insular possession of the United States, section, must be made to the respective Federal Reserve banks on it must have a capital and surplus of $1,000,000 or call dates fixed by the Board of Governors of the Federal Reserve more and obtain the approval of the Board. System "shall be published by the reporting banks in such manner and in accordance with such regulations as the said Board may (e) Application for approval of foreign branches. prescribe". Section 9 also provides that the reports of affiliates of a member —Any member State bank desiring to establish such State bank which are required by that section to be furnished to a branch and any nonmember State bank applying the respective Federal Reserve banks "shall be published by the for membership and desiring to retain any such bank under the same conditions as govern its own condition reports". The term "affiliates", as used in this provision of section branch established after February 25, 1927, should9, under the express terms of that section, includes "holding comsubmit a request for the approval by the Board of pany affiliates as well as other affiliates", but a member State bank any such branch to the Federal Reserve bank of is not required to furnish to a Federal Reserve bank the report of an affiliated member bank. the district in which the bank is located. Any such 16 Section 21 of the Federal Reserve Act, among other things, request should be accompanied by advice as to the provides as follows: "Whenever member banks are required to scope of the functions and the character of the busi- obtain reports from affiliates, or whenever affiliates of member banks are required to submit to examination, the Board of Governess which are or will be performed by the branch nors of the Federal Reserve System or the Comptroller of the Curand detailed information regarding the policy fol- rency, as the case may be, may waive such requirements with relowed or proposed to be followed with reference to spect to any such report or examination of any affiliate if in the judgment of the said Board or Comptroller, respectively, such supervision of the branch by the head office; and report or examination is not necessary to disclose fully the relathe bank may be required in any case to furnish ad- tions between such affiliate and such bank and the effect thereof ditional information which will be helpful to the upon the affairs of such bank." Therefore, of course, in any case where the Board of Governors waives the filing of a report of an Board in determining whether to approve such re- affiliate of a member State bank, no publication of a report of quest. such affiliate is required. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1060 FEDERAL RESERVE BULLETIN DECEMBER 1939 paper as the condition report of the bank was pub- bank authorizing the withdrawal of such tank from lished. membership in the Federal Reserve System and au- The copy of the report for the use of the printer thorizing a certain officer or certain officers of such for publication should be prepared on Form 220a. bank to file such notice or application, to surrender The published information shall agree in every re- for cancellation the Federal Reserve bank stock held spect with that shown on the face of the report of by such bank, to receive and receipt for any moneys the affiliate furnished to the Federal Reserve bank by or other property due to such bank from the Federal the affiliated member bank, except that any item ap- Reserve bank and to do such other things as may be pearing under the caption "Financial relations with necessary to effect the withdrawal of such bank bank" against which the word "none" appears on from membership in the Federal Reserve System. the report furnished to the Federal Reserve bank Notice of intention to withdraw or application for may be omitted in the published statement of the waiver of six months' notice of intention to withdraw affiliate, provided that if the word "none" is shown by any bank which is in the hands of a conservator against all of the items appearing under such cap- or other State official acting in a capacity similar tion in the report furnished to the Federal Reserve to that of a conservator should be accompanied by bank the caption "Financial relations with bank" advice from the conservator or other such State ofshall appear in the published statement followed by ficial that he joins in such notice or application. the word "none." All signatures shall be the same (c) Time and method of effecting actual within the published statement as in the original report drawal.—Upon the expiration of six months after submitted to the Federal Reserve bank, but the notice of intention to withdraw or upon the waiving signatures may be typewritten or otherwise copied of such six months' notice by the Board, such bank on the report for publication. may surrender its stock and its certificate of mem- A copy of the printed report shall be submitted to bership to the Federal Reserve bank and request the Federal Reserve bank attached to the certificate that same be canceled and that all amounts due to on Form 220a. it from the Federal Reserve bank be refunded.18 Unless this is done within two months after the ex- SECTION 10. VOLUNTARY WITHDRAWAL FROM FEDERAL piration of such six months' notice or after the waiver RESERVE SYSTEM of such notice by the Board, or unless the bank requests and the Board grants an extension of time, (a) General.—Any State bank desiring to with- such bank will be presumed to have abandoned its draw from membership in a Federal Reserve bank intention of withdrawing from membership and will may do so after six months' written notice has been not be permitted to withdraw without again giving filed with the Board;17 and the Board, in its discre- six months' written notice or obtaining the waiver tion, may waive such six months' notice in any indi- of such notice. vidual case and may permit such bank to withdraw (d) Withdrawal of notice.—Any bank which has from membership in a Federal Reserve bank, subject given notice of its intention to withdraw from memto such conditions as the Board may prescribe, prior bership in a Federal Reserve bank may withdraw such to the expiration of six months from the date of notice at any time before its stock has been canceled the written notice of its intention to withdraw. and upon doing so may remain a member of the (b) Notice of intention of withdrawal.—Any State Federal Reserve System. The notice rescinding the bank desiring to withdraw from membership in a former notice should be accompanied by a certified Federal Reserve bank should signify its intention to copy of an appropriate resolution duly adopted by do so in a letter addressed to the Board and mailed the board of directors of the bank. to the Federal Reserve bank of which such bank is a member. Such letter should state clearly the reason SECTION 11. BOARD FORMS for the bank's desire to withdraw. Any such bank desiring to withdraw from membership prior to the All forms referred to in this regulation and all expiration of six months from the date of written such forms as they may be amended from time to notice of its intention to withdraw should so state time shall be a part of this regulation. in the letter signifying its intention to withdraw and 18 A bank's withdrawal from membership in the Federal Reserve should state the reason for its desire to withdraw System is effective on the date on which the Federal Reserve bank prior to the expiration of six months. stock held by it is duly canceled. Until such stock has been can- Every notice of intention of a bank to withdraw celed, such bank remains a member of the Federal Reserve Sysfrom membership in the Federal Reserve System tem, is entitled to all the privileges of membership, and is required to comply with all provisions of law and all regulations of the and every application for the waiver of such notice Board pertaining to member banks and with all conditions of should be accompanied by a certified copy of a resolu- membership applicable to it. Upon the cancellation of such stock, tion duly adopted by the board of directors of such all rights and privileges of such bank as a member bank shall terminate. Upon the cancellation of such stock, and after due provision 17 Under specific provisions of section 9 of the Federal Reserve has been made for any indebtedness due or to become due to the Act, however, no Federal Reserve bank shall, except upon express Federal Reserve bank, such bank shall be entitled to a refund of authority of the Board, cancel within the same calendar year more its cash paid subscription with interest at the rate of one-half of than twenty-five per cent of its capital stock for the purpose of one per cent per month from the date of last dividend, the amount effecting voluntary withdrawals during that year. All applications refunded in no event to exceed the book value of the stock at that for voluntary withdrawals are required by the law to be dealt with time, and shall likewise be entitled to the repayment of deposits in the order in which they are filed with the Board. and of any other balance due from the Federal Reserve bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1939 FEDERAL RESERVE BULLETIN 1061 APPENDIX Payment of subscription Whenever the Board of Governors of the Federal Statutory Provisions Reserve System shall permit the applying bank to Section 9 of the Federal Reserve Act provides as become a stockholder in the Federal reserve bank of follows: the district its stock subscription shall be payable on call of the Board of Governors of the Federal Applications for membership by State banks x Reserve System, and stock issued to it shall be held subject to the provisions of this act. Any bank incorporated by special law of any State, or organized under the general laws of any State or Provisions of law to be complied with; reports of of the United States, including Morris Plan banks condition and other incorporated banking institutions engaged in similar business, desiring to become a member of All banks admitted to membership under authorthe Federal Reserve System, may make application ity of this section shall be required to comply to the Board of Governors of the Federal Reserve with the reserve and capital requirements of this System, under such rules and regulations as it may act and to conform to those provisions of law imprescribe, for the right to subscribe to the stock of posed on national, banks which prohibit such banks the Federal reserve bank organized within the dis- from lending on or purchasing their own stock, which trict in which the applying bank is located. Such relate to the withdrawal or impairment of their application shall be for the same amount of stock capital stock, and which relate to the payment of that the applying bank would be required to sub- unearned dividends. Such banks and the officers, scribe to as a national bank. For the purposes of agents, and employees thereof shall also be subject membership of any such bank the terms "capital" to the provisions of and to the penalties prescribed and "capital stock" shall include the amount of out- by section fifty-two hundred and nine of the Revised standing capital notes and debentures legally issued Statutes, and shall be required to make reports of by the applying bank and purchased by the Recon- condition and of the payment of dividends to the struction Finance Corporation. The Board of Gov- Federal reserve bank of which they become a memernors of the Federal Reserve System, subject to the ber. Not less than three of such reports shall be provisions of this Act and to such conditions as it made annually on call of the Federal reserve bank may prescribe pursuant thereto may permit the on dates to be fixed by the Board of Governors of the applying bank to become a stockholder of such Fed- Federal Reserve System. Failure to make such eral reserve bank. reports within ten days after the date they are called for shall subject the offending bank to a penalty of Branches of State member banks $100 a day for each day that it fails to transmit such report; such penalty to be collected by the Federal Any such State bank which, at the date of the reserve bank by suit or otherwise. Such reports of approval of this Act, has established and is operating a branch or branches in conformity with the State condition shall be in such form and shall contain such law, may retain and operate the same while remain- information as the Board of Governors of the Federal ing or upon becoming a stockholder of such Federal Reserve System may require and shall be published reserve bank; but no such State bank may retain or by the reporting banks in such manner and in accordacquire stock in a Federal reserve bank except upon ance with such regulations as the said Board may relinquishment of any branch or branches established prescribe. after the date of the approval of this Act beyond the limits of the city, town, or village in which the parent Examinations bank is situated. Provided, however, That nothing As a condition of membership such banks shall herein contained shall prevent any State member likewise be subject to examinations made by direcbank from establishing and operating branches in tion of the Board of Governors of the Federal Rethe United States or any dependency or insular posserve System or of the Federal reserve bank by session thereof or in any foreign country, on the examiners selected or approved by the Board of same terms and conditions and subject to the same Governors of the Federal Reserve System. limitations and restrictions as are applicable to the establishment of branches by national banks except Acceptance of State examinations; expenses; reports that the approval of the Board of Governors of the of examinations Federal Reserve System, instead of the Comptroller of the Currency, shall be obtained before any State Whenever the directors of the Federal reserve member bank may hereafter establish any branch bank shall approve the examinations made by the and before any State bank hereafter admitted to State authorities, such examinations and the reports membership may retain any branch established after thereof may be accepted in lieu of examinations made February 25, 1927, beyond the limits of the city, by examiners selected or approved by the Board of town, or village in which the parent bank is situated. Governors of the Federal Reserve System: Provided, however, That when it deems it necessary the board Financial condition, management and powers may order special examinations by examiners of its own selection and shall in all cases approve the form In acting upon such application the Board of of the report. The expenses of all examinations, Governors of the Federal Reserve System shall conother than those made by State authorities, may, in sider the financial condition of the applying bank, the discretion of the Board of Governors of the Fedthe general character of its management, and whether eral Reserve System, be assessed against the banks or not the corporate powers exercised are consistent examined and, when so assessed, shall be paid by the with the purposes of this act. banks examined. Copies of the reports of such ex- 1 This and subsequent catchlines are not a part of the law. aminations may, in the discretion of the Board of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1062 FEDERAL RESERVE BULLETIN DECEMBER 1939 Governors of the Federal Reserve System, be fur- companies organized prior to the date this paranished to the State authorities having supervision of graph as amended takes effect and situated in a such banks, to officers, directors, or receivers of such place the population of which does not exceed three banks, and to any other proper persons. thousand inhabitants and having a capital of not less than $25,000, nor to any State bank or trust com- Forfeiture of membership pany which is so situated and which, while it is entitled to the benefits of insurance under section 12B If at any time it shall appear to the Board of Gov- of this Act, increases its capital to not less than ernors of the Federal Reserve System that a mem- $25,000. ber bank has failed to comply with the provisions of this section or the regulations of the Board of Gov- Waiver of membership requirements as to insured ernors of the Federal Reserve System made pursuant banks thereto, or has ceased to exercise banking functions without a receiver or liquidating agent having been (The provisions of this paragraph of the statute appointed therefor, it shall be within the power of relate to waiver of membership requirements for the board after hearing to require such bank to sur- banks which were formerly required to become memrender its stock in the Federal reserve bank and to bers of the Federal Reserve System under subsecforfeit all rights and privileges of membership. The tion (y) of section 12B of the Federal Reserve Act. Board of Governors of the Federal Reserve System In view of an amendment of June 20, 1939, repealing may restore membership upon due proof of compli- the requirement for membership, the provisions ance with the conditions imposed by this section. relating to waiver of membership requirements is no longer effective, and, accordingly, is not printed Voluntary withdrawal from membership herein.) Any State bank or trust company desiring to Laws to which subject withdraw from membership in a Federal reserve bank may do so, after six months' written notice Banks becoming members of the Federal Reserve shall have been filed with the Board of Governors System under authority of this section shall be subof the Federal Reserve System, upon the surrender ject to the provisions of this section and to those of and cancellation of all of its holdings of capital stock this act which relate specifically to member banks, in the Federal reserve bank: Provided, That the but shall not be subject to examination under the Board of Governors of the Federal Reserve System, provisions of the first two paragraphs of section in its discretion and subject to such conditions as it fifty-two hundred and forty of the Revised Statutes may prescribe, may waive such six months' notice as amended by section twenty-one of this act. Subin individual cases and may permit any such State ject to the provisions of this act and to the regulabank or trust company to withdraw from membertions of the board made pursuant thereto, any bank ship in a Federal reserve bank prior to the expiration becoming a member of the Federal Reserve System of six months from the date of the written notice of shall retain its full charter and statutory rights its intention to withdraw: Provided, however, That as a State bank or trust company, and may continue no Federal reserve bank shall, except under express to exercise all corporate powers granted it by the authority of the Board of Governors of the Federal Reserve System, cancel within the same calendar State in which it was created, and shall be entitled year more than twenty-five per centum of its capital to all privileges of member banks: Provided, howstock for the purpose of effecting voluntary with- ever, That no Federal reserve bank shall be perdrawals during that year. All such applications shall mitted to discount for any State bank or trust combe dealt with in the order in which they are filed with pany notes, drafts, or bills of exchange of any one the board. Whenever a member bank shall surrender borrower who is liable for borrowed money to such its stock holdings in a Federal reserve bank, or shall State bank or trust company in an amount greater be ordered to do so by the Board of Governors of than that which could be borrowed lawfully from the Federal Reserve System, under authority of such State bank or trust company were it a national law, all of its rights and privileges as a member banking association. The Federal reserve bank, as a bank shall thereupon cease and determine, and after condition of the discount of notes, drafts, and bills of due provision has been made for any indebtedness exchange for such State bank or trust company, shall due or to become due to the Federal reserve bank it require a certificate or guaranty to the effect that shall be entitled to a refund of its cash paid sub- the borrower is not liable to such bank in excess of scription with interest at the rate of one-half of one the amount provided by this section, and will not be per centum per month from date of last dividend, permitted to become liable in excess of this amount if earned, the amount refunded in no event to exceed while such notes, drafts, or bills of exchange are the book value of the stock at that time, and shall under discount with the Federal reserve bank. likewise be entitled to repayment of deposits and of any other balance due from the Federal reserve False certification of checks bank. It shall be unlawful for any officer, clerk, or agent of any bank admitted to membership under author- Capital required for membership ity of this section to certify any check drawn upon No applying bank shall be admitted to member- such bank unless the person or company drawing the ship in a Federal reserve bank unless it possesses a check has on deposit therewith at the time such paid-up unimpaired capital sufficient to entitle it to check is certified an amount of money equal to the become a national banking association in the place amount specified in such check. Any check so certiwhere it is situated under the provisions of the fied by duly authorized officers shall be a good and National Bank Act, as amended: Provided, That this valid obligation against such bank, but the act of any paragraph shall not apply to State banks and trust such officer, clerk, or agent in violation of this sec- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1939 FEDERAL RESERVE BULLETIN 1063 tion may subject such bank to a forfeiture of its vided for in lieu of payment upon capital stock membership in the Federal Reserve System upon shall be applied upon such subscription. If the hearing by the Board of Governors of the Federal laws under which any such savings bank was or- Reserve System. ganized be not amended at the next session of the legislature following the admission of such sav- Government depositaries and financial agents ings bank to membership so as to authorize mutual savings banks to purchase Federal reserve bank All banks or trust companies incorporated by spe- stock, or if such laws be so amended and such cial law or organized under the general laws of any bank fail within six months thereafter to purchase State, which are members of the Federal Reserve such stock, all of its rights and privileges as a mem- System, when designated for that purpose by the ber bank shall be forfeited and its membership in Secretary of the Treasury, shall be depositaries of the Federal Reserve System shall be terminated in public money, under such regulations as may be the manner prescribed elsewhere in this section prescribed by the Secretary; and they may also be with respect to State member banks and trust comemployed as financial agents of the Government; and panies. Each such mutual savings bank shall comply they shall perform all such reasonable duties, as with all the provisions of law applicable to State depositaries of public money and financial agents of member banks and trust companies, with the reguthe Government, as may be required of them. The lations of the Board of Governors of the Federal Secretary of the Treasury shall require of the banks Reserve System and with the conditions of memberand trust companies thus designated satisfactory ship prescribed for such savings bank at the time security, by the deposit of United States bonds or of admission to membership, except as otherwise otherwise, for the safe keeping and prompt pay- hereinbefore provided with respect to capital stock. ment of the public money deposited with them and for the faithful performance of their duties as Reports of affiliates financial agents of the Government. Each bank admitted to membership under this Admission to membership of mutual savings banks section shall obtain from each of its affiliates other than member banks and furnish to the Federal reserve Any mutual savings bank having no capital stock bank of its district and to the Board of Governors (including any other banking institution the capital of the Federal Reserve System not less than three of which consists of weekly or other time deposits reports during each year. Such reports shall be in which are segregated from all other deposits and are such form as the Board of Governors of the Federal regarded as capital stock for the purposes of taxation Reserve System may prescribe, shall be verified by and the declaration of dividends), but having sur- the oath or affirmation of the president or such other plus and undivided profits not less than the amount officer as may be designated by the board of direcof capital required for the organization of a national tors of such affiliate to verify such reports, and shall bank in the same place, may apply for and be ad- disclose the information hereinafter provided for as mitted to membership in the Federal Reserve System of dates identical with those fixed by the Board of in the same manner and subject to the same provisions Governors of the Federal Reserve System for reports of law as State banks and trust companies, except of the condition of the affiliated member bank. Each that any such savings bank shall subscribe for capital such report of an affiliate shall be transmitted as stock of the Federal reserve bank in an amount herein provided at the same time as the correspondequal to six-tenths of 1 per centum of its total ing report of the affiliated member bank, except that deposit liabilities as shown by the most recent report the Board of Governors of the Federal Reserve System may, in its discretion, extend such time for good of examination of such savings bank preceding its cause shown. Each such report shall contain such inadmission to membership. Thereafter such subscripformation as in the judgment of the Board of Govtion shall be adjusted semiannually on the same perernors of the Federal Reserve System shall be necescentage basis in accordance with rules and regulations sary to disclose fully the relations between such prescribed by the Board of Governors of the Federal affiliate and such bank and to enable the Board to Reserve System. If any such mutual savings bank inform itself as to the effect of such relations upon applying for membership is not permitted by the the affairs of such bank. The reports of such aflaws under which it was organized to purchase stock filiates shall be published by the bank under the in a Federal reserve bank, it shall, upon admissame conditions as govern its own condition reports. sion to the system, deposit with the Federal reserve bank an amount equal to the amount which it would Additional reports of affiliates have been required to pay in on account of a subscription to capital stock. Thereafter such deposit Any such affiliated member bank may be required shall be adjusted semiannually in the same manner to obtain from any such affiliate such additional reas subscriptions for stock. Such deposits shall be ports as in the opinion of its Federal reserve bank subject to the same conditions with respect to re- or the Board of Governors of the Federal Reserve payment as amounts paid upon subscriptions to cap- System may be necessary in order to obtain a full ital stock by other member banks and the Federal and complete knowledge of the condition of the afreserve bank shall pay interest thereon at the same filiated member bank. Such additional reports shall rate as dividends are actually paid on outstand- be transmitted to the Federal reserve bank and the ing shares of stock of such Federal reserve bank. Board of Governors of the Federal Reserve System If the laws under which any such savings bank and shall be in such form as the Board of Governors was organized be amended so as to authorize mutual of the Federal Reserve System may prescribe. savings banks to subscribe for Federal reserve bank stock, such savings bank shall thereupon subscribe Failure to obtain reports of affiliates for the appropriate amount of stock in the Federal Any such affiliated member bank which fails to reserve bank, and the deposit hereinbefore pro- obtain from any of its affiliates and furnish any Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1064 FEDERAL RESERVE BULLETIN" DECEMBER 1939 report provided for by the two preceding paragraphs copy of each such agreement shall be filed with the of this section shall be subject to a penalty of $100 Board of Governors of the Federal Reserve System. for each day during which such failure continues, Upon the failure of a State member bank affiliated which, by direction of the Board of Governors of with a holding company affiliate to obtain such an the Federal Reserve System, may be collected, by agreement within the time so prescribed, the Board suit or otherwise, by the Federal reserve bank of the of Governors of the Federal Reserve System shall district in which such member bank is located. For require such bank to surrender its stock in the the purposes of this paragraph and the two preced- Federal reserve bank and to forfeit all rights and ing paragraphs of this section, the term "affiliate" privileges of membership in the Federal Reserve shall include holding company affiliates as well as System as provided in this section. Whenever the other affiliates. Board of Governors of the Federal Reserve System shall have revoked the voting permit of any such Dealings in investment securities and stock holding company affiliate, the Board of Governors of the Federal Reserve System may, in its discre- State member banks shall be subject to the same tion, require any or all State member banks affiliated limitations and conditions with respect to the purwith such holding company affiliate to surrender their chasing, selling, underwriting, and holding of instock in the Federal reserve bank and to forfeit vestment securities and stock as are applicable in all rights and privileges of membership in the Fedthe case of national banks under paragraph "Seventh" eral Reserve System as provided in this section. of section 5136 of the Revised Statutes, as amended. Divorce of stock from stock of other corporations Examination of affiliates After the date of the enactment of the Banking In connection with examinations of State member Act of 1935, no certificate evidencing the stock of banks, examiners selected or approved by the Board any State member bank shall bear any statement of Governors of the Federal Reserve System shall purporting to represent the stock of any other cor- make such examinations of the affairs of all affiliates poration, except a member bank or a corporation en- of such banks as shall be necessary to disclose fully gaged on June 16, 1934 in holding the bank premises the relations between such banks and their affiliates of such member bank, nor shall the ownership, sale, and the effect of such relations upon the affairs of or transfer of any certificate representing the stock such banks. The expense of examination of affiliates of any State member bank be conditioned in any of any State member bank may, in the discretion manner whatsoever upon the ownership, sale, or of the Board of Governors of the Federal Reserve transfer of a certificate representing the stock of any System, be assessed against such bank and, when so other corporation, except a member bank or a cor- assessed, shall be paid by such bank. In the event poration engaged on June 16, 1934 in holding the of the refusal to give any information requested bank premises of such member bank: Provided, That in the course of the examination of any such affiliate, this section shall not operate to prevent the owner- or in the event of the refusal to permit such examinaship, sale, or transfer of stock of any other corpora- tion, or in the event of the refusal to pay any expense tion being conditioned upon the ownership, sale, so assessed, the Board of Governors of the Federal or transfer of a certificate representing stock of a Reserve System may, in its discretion, require any State member bank. or all State member banks affiliated with such affiliate to surrender their stock in the Federal reserve bank and to forfeit all rights and privileges of mem- Holding company affiliates bership in the Federal Reserve System, as provided Each State member bank affiliated with a holding in this section. company affiliate shall obtain from such holding company affiliate, within such time as the Board NOTE: The provisions of law specifically referred of Governors of the Federal Reserve System shall to in section 9 and other provisions to which a State prescribe, an agreement that such holding company bank which is a member of the Federal Reserve affiliate shall be subject to the same conditions and System is subject are printed in the Federal Reserve limitations as are applicable under section 5144 of Act or the Appendix thereto as compiled under the the Revised Statutes, as amended, in the case of direction of the Board of Governors of the Federal holding company affiliates of national banks. A Reserve System. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1065 DECEMBER 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 savings and except where otherwise indicated Total private banks Mutual National State Private Insured1 Not insured i Number of Banking Offices 1933 . 17,940 6,275 1,817 9,341 704 103 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 (Sept. 30) 18,667 6,716 2,139 8,129 926 4 688 5 69 Number of Banks (Head Offices) 1933 15,029 5,154 857 8,J41 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 (Sept. 30) __ _ 15,050 5,197 1,144 7,211 883 552 63 Number of Branches' 1933 _. 2,911 1 121 960 7TO 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 (Sept. 30) 3,617 1,519 995 918 43 136 6 i Federal deposit insurance did not become operative until January 1, 1934. a 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. * Separate figures not available for branches of insured and not insured banks. * Comprises 50 insured banks with 21 branches and 502 uninsured banks with 115 branches. * Comprises 1 insured bank with no branches and 62 uninsured banks with 6 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 (Sept. 30). 1, 742 1,875 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1066 FEDERAL RESERVE BULLETIN DECEMBER 1939 ANALYSIS OF CHANGES IN NUMBER OF BANKS AND BRANCHES, JANUARY 1—SEPTEMBER 30,1939 [Preliminary figures] Member banks Nonmember banks Other than mutual Total savings and private banks National State M sa u vi 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) * - +17 +3 +1 +11 +2 Decreases in number of banks: Suspensions _ _ _ -36 -4 -2 -20 -9 -1 Voluntary liquidations 2 _ -28 -3 -3 -10 -8 -4 Consolidations, absorptions, etc -97 -26 -4 -60 A -3 Inter-class bank changes: Conversions— State into national - +13 -9 -4 National into State _ _ -10 +2 +8 Federal Reserve membership—3 Admissions of State banks . « _ _ _ . -» +49 -49 Withdrawals of State banks -4 +4 Federal deposit insurance—4 Admissions of State banks +15 -15 Withdrawals of State banks . Net increase or decrease in number of banks -144 -27 +30 -105 -34 -3 -5 Number of banks on September 30,1939 15,050 5,197 1,144 7,211 883 552 63 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 - +35 +5 +5 +22 +2 +1 Banks converted into branches +37 +11 +4 +21 +1 Decreases in number of branches: Suspension of parent bank —9 -7 -2 Otherwise discontinued «« - -26 -4 -10 -12 Inter-class branch changes: Branches of a National bank which became a State member bank -4 +4 Branch of a National bank which became a branch of a nonmember bank - - —1 +1 Branches of a nonmember bank which became a National bank +13 -13 Branches of nonmember banks which became branches of State Tnembpr bfvnks 5 +7 -7 Net increase or decrease in number of branches +37 +20 +3 +10 +2 +1 +1 Nmnber of brapches'^p September 30,1939 3,617 1,519 995 918 43 136 6 i Exclusive of new banks organized to succeed operating banks. a Exclusive of liquidations incident to the succession, conversion and absorption of banks. 8 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. * Includes 2 branches of an insured nonmember bank which was absorbed by a State member bank and 5 branches of 3 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

1067 DECEMBER 1939 FEDERAL RESERVE BULLETIN RESTORATION OF NETHERLANDS GOVERNMENT'S POWER TO PROHIBIT THE EXPORT OF GOLD The embargo on the exportation of gold AUTHORIZATION TO PROHIBIT THE EXPORT OF GOLD from the Netherlands which came into force Article 1. As soon as this act comes into force, the on October 1, 1936, was repealed by Royal royal decree of September 26, 1936, No. 52, prodecree of June 28, 1938. An act of Novem-hibiting the export of gold coin and gold bullion shall acquire force of law as from the day on which ber 25, 1938, restores the effect of the original it was signed. The prohibition shall remain valid measure of 1936. The Crown is now au- until repealed by royal decree; its repeal shall be published in the Nederlandsche Staatscourant. thorized, on recommendation of the Minister Article Ibis. The Crown is authorized, on the recof Finance, to prohibit temporarily the ex- ommendation of the Minister of Finance, to prohibit port of gold coin and gold bullion. Power temporarily the export of gold coin and gold bullion, as from a date to be fixed by the Minister of Finance to authorize exemptions from the prohibition and with the proviso that exemptions from the prowill be granted to the Minister whenever hibition may be granted in special cases by or on behalf of the said Minister. The provision of the secthe embargo becomes effective. The amend- ond sentence of article 1 shall apply to this proments made by the act of November 25, hibition. After the issue of a royal decree as referred to in 1938, came into force on December 10, 1938. the first paragraph of this article a bill shall be An unofficial translation of the act of introduced without delay in the States General in order to have the prohibition sanctioned by law. September 30, 1936 (Staatsblad No. 101), If the bill be withdrawn, or rejected by the States as amended by the act of November 25, General, the royal decree shall be repealed without delay. 1938 (Staatsblad No. 408), published as an Article 2. The provisions of the act of August 3, appendix to the Annual Report of the Nether- 1914 (Staatsblad No. 334), as amended by existing lands Bank for 1938-1939, is given herewith. or future laws, shall apply to the prohibition of article 1 and article Ibis in a like manner as would The two preceding measures relating to the be the case if the prohibition were decreed by virtue embargo on gold were published respectively of the said act, except in so far as the prohibition itself contains provisions to the contrary. in the BULLETIN for December, 1936 and Article 3. This act shall come into force on the day October 1938. after its promulgation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1068 FEDERAL RESERVE BULLETIN DECEMBER 1939 ANNUAL REPORT OF THE NETHERLANDS BANK The annual report of the Netherlands Bank viction that the world will come to its senses for the year ending March 31, 1939, was pre- and be able to create the possibility for sented to the general meeting of shareholders collaboration and mutual support. Two reon June 6, 1939, by Dr. L. J. A. Trip, Presi- flections are the main foundation of this condent of the Bank. Sections of the official viction. Firstly, there is no doubt that a new English translation of the report published world war, at the present stage of technique by the Bank are given herewith: 1 and armaments, would have such annihilat- International political developments.—The ing consequences, not only of a material financial year which ended on March 31,1939,nature and for the armed forces in direct was largely influenced by the development of conflict, but also for the civil population, international political relations. These rela- especially women and children, that common tions created constant unrest and uncertainty sense refuses to accept as possible the unwhich turned, on several occasions, into panic chaining of such slaughter and the willingand war-scare. This led to armaments being ness of the peoples to subject themselves to it. increased to a level which it will be impossible Secondly, it is a fact that a world war would to maintain. It is comprehensible and ex- lead to such chaos that there could be no plicable that in a world in which the menace question of gathering the fruits of victory, of armed forces plays as important a role and the present-day powers would not suras it; does today, no other possibility can be vive the calamity. envisaged than the concentration of all forces International financial and economic develtowards strengthening the fighting services. opments.—The above remarks not only lead This also applies to countries which nobody to the conclusion that the economic, financial for a moment suspects of aggressive intenand monetary future is absolutely uncertain, tions. It is, however, incomprehensible and dependent as it is on international political inexplicable that the world has neither the relations; it implies at the same time that it strength nor the will to leave the road to ruin is exceedingly difficult, if not impossible, to and to put an end to the senseless race. It is form an accurate idea of the present situation surely clear to all who wish to see, that no in the three spheres just mentioned. The country will be able, in the long run, to keep situation is subject to the influence of so up the present-day tempo and the present exmany abnormal, artificial and unsound factent of its armaments and expenditure. Actors that a correct estimate as to the share of cording to an estimate relating to this matter, each of these factors is impossible. Morethe various governments together must borover, the actual situation is repeatedly underrow almost 2,000,000,000 guilders a month to going radical changes at very short notice. cover their budgetary deficits. The unlimited armaments have already Under the circumstances thus briefly debeen mentioned above. Next, attention must scribed one asks oneself whether there is any be called to the ever-advancing isolation of sense in economic and financial contemplaindividual countries. Despite the admission tions as, long as there is so little certainty that more extensive commercial intercourse about political developments. For it is in is of the most vital importance, every day these developments, as experience teaches brings new impediments to imports and, conagain and again, that the decisive factor for sequently, to exports. In practice, all counthe future lies. Economic revival, financial tries are continuing their efforts to further recovery and monetary stability are unthinktheir exports, often accepting most unsound able unless international political relations and unfruitful means, and at the same time show a considerable improvement, the fear of to restrict their imports. That such efforts war is banished, and armaments are reduced have no chance of success is self-evident. It to a reasonable level. In the meanwhile it is impossible to reserve the home market for would be inadmissible, in my opinion, to ashome prgduction and at the same time to ensume that the conditions just described could large sales on foreign markets. In reality not be fulfilled. We may not give up the conthese efforts to further exports whilst at the 1 The report, which is available also in Dutch, contains in addi- same time restricting imports are only part tion sections dealing with the money market, interest rates, the of the whole system of artificial and in many capital market, exchange rates, etc., together with a number of tables. For earlier reports, see BULLETIN for August 1938 and cases mutually contradictory measures which 1937, July 1936, 1934, 1933, September 1932, August 1931, etc. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1939 FEDERAL RESERVE BULLETIN 1069 are being taken to a growing extent in vari- economic life. A process of cartellizing naous countries and styled economic policy. tional business life under the guidance and Among these measures, those in the mone- stimulus of the government is well under way tary and financial field play an important in various countries. This will no doubt part. A progressive development can be result in rigidity followed by higher prices traced here. In the beginning it was expected and increased cost of production. Experience that a lowering of the gold value of monetary has taught that cartels and trusts involve a units would lead to a corresponding rise in tendency to maintain or force up price levels. commodity prices while a policy of cheap As long as the government refrained from comoney and expansion of credit was to stimu- operation and stimulation, there was a cerlate private enterprise. When this expecta- tain corrective in the freedom of participation tion was not fulfilled and the said policy and in the initiative and competition of outwould apparently not yield the desired re- siders. If the government bars the way to sults, refuge was taken in a great increase this corrective, as seems to be more and more in government expenditure, which caused the case, harmful consequences will make budget deficits to grow rapidly. It was sup- themselves felt. The burden which is conposed that this would make private business sequently put on the consumer, added to the revive in a relatively short time, and that the influence of monetary and fiscal measures, government would then be able to reduce its will not fail to lead to impoverishment, a intervention within the limits of its revenue. decrease in consumption and the growth of This expectation was not realized either, with unemployment. The power of the government the result that the level of government ex- reaches far, but not so far as to enable it to penditure and budget deficits was maintained enforce greater consumption when the reand even raised on the assumption that, in quired means and confidence on the part of this way, the national income and prosperity the consumers are lacking. It is true that the would increase. Not in all countries were the government could, by distributing money, motives of the government's policy along the create the impression for a certain time that lines just indicated stated in so many words. the consumers have increased purchasing In several cases this reasoning was even ex- power at their disposal; but, as experipressly repudiated. But in actual fact things ence has already taught and as the future have on the whole moved in the direction will certainly show once more in a painful indicated above. Depreciation of national manner, this is only a question of shifting monetary units, a policy of cheap money, purchasing power, the result of which can be great increase of government expenditure, neither sound nor lasting. Only cheaper and growing budgetary deficits, which are taking more extensive production, gradually increason a mpre and more permanent character, are ing international trade, and the liberation the principal characteristics of the develop- of economic life from the innumerable imment. In my opinion it cannot be said that pediments which are constantly neutralizing this development has led to a lasting improve- the essential elasticity in prices and cost of ment. Nor is it reasonable to suppose that production, and from the excessive burden of one can go on in this direction much longer. taxation in various forms, which is stifling This applies especially to the policy of antici- private initiative and investment, can bring pating on future income and future savings, goods within the reach of consumers on a which is being followed nowadays in various larger scale and at lower prices. Only then countries. Even in the wealthiest countries will sound and lasting purchasing power and there is a limit to the reserves which they a permanent increase of employment be sacrifice in order to pursue their present line created. of action. I know that my view is not in agreement As to the measures in the economic field, I with the wishes of the powers that determine have already mentioned the continuous cur- the line of action in most countries. But this tailment of international trade which is going may not deter me from bringing to the fore hand in hand with persistent endeavors to and from defending that view again and reserve the home market for home produc- again, particularly because I am convinced tion. As an inevitable consequence, govern- that sooner or later the facts will show that ments have come to interfere to a rapidly we cannot go on along the road which we increasing extent in almost every branch of are following at present, and that we shall Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1070 FEDERAL RESERVE BULLETIN DECEMBER 1939 have to change our course from sheer neces- DEVELOPMENT OF THE GOLD VALUE OF VARIOUS sity. It will then be deplorable that so much MONETARY UNITS more has been lost and that the sacrifices to be made will weigh so much more heavily Gold Gold than would have been the case if the way of value value March 31, March 31, Decline least resistance had been abandoned sooner. 1938 1939 in per cent After what has been said above, the reader will not be surprised that my expectations (In fine grammes) for the future, even apart from the inter- U. S. dollar 0.8863 0.8863 national political situation, cannot be favor- Belga 0.1498 0.1492 0.40 Guilder. ._ 0. 4907 0. 4705 4.12 able. That the considerable decline in eco- Pound sterling 4. 4030 4.1495 5.76 nomic activity which was noticeable in 1938 Danish crown . 0.1965 0.1852 5.75 Norwegian crown 0. 2212 0.2085 5.74 as compared with 1937, did not degenerate Swedish crown 0. 2269 0. 2138 5.77 French franc 0.0272 0.0235 13.60 into a crisis, and that consequently a compari- Swiss franc _ _ 0. 2032 0.1989 2.12 son with 1936 does not lead to downright Japanese yen.. . . __ .. 0. 2568 0. 2415 5.96 unfavorable results, cannot change these expectations. The same applies with regard monetary units of the other countries of the to the improvement shown by the second sterling bloc with about 5.75 per cent. The half of 1938 as compared with the first part decline of the Netherlands guilder amounted of that year. Apart from the fact that the to 4.12 per cent while that of the Swiss franc first months of 1939 saw the end of this imwas only 2.12 per cent. provement, it suffices to refer to the many These figures show once more that there artificial and unsound factors and measures is still no question of stability in the rates of which I have already mentioned and which exchange and that the monetary agreement are little apt to free the world of the everin existence between the United States, Great recurring declines in trade which have been Britain, France, Belgium, the Netherlands experienced since the end of the war of 1914. and Switzerland provides no adequate se- The decline in 1938 is shown by the follow- curity in the monetary sphere. Capital moveing index figures, in the computation of which ments, which periodically assumed large pro- 1929 is taken as 100. portions under the influence of international Industrial world production, which rose political difficulties, must be considered as from 109.5 in 1936 to 117.7 in 1937, declined the main cause of the fluctuations in the rates to 109.8; world trade, the value of which, in of exchange. There has been a strong flow gold, had reached 46.4 in 1937, after having of capital to America. In addition, the trade been 37.4 in 1936, diminished to 40.2; the balance of the United States showed a subsea freights of tramp shipping, which had stantial excess of exports of more than reached the high figure of 132.6 in 1937 after $1,100,000,000. having been 87.4 in 1936, fell to 100.9 in 1938; Imports into this very important country shipbuilding moved from 89.7 in 1936 to 102.1 declined in value by 35.8 per cent while the in 1937 and to 84.4 in 1938; wholesale prices value of exports only diminished by 7.6 per fell from 78.6 in 1937 to 63.0 in 1938 and thus cent. This situation stands in peculiar concame below the 1936 figure of 69.7. trast with the position of the United States International monetary developments.—In as a creditor country, and is naturally apt the monetary field there has also been a de- to increase the existing difficulties in no small cline. This can be seen from the following measure. Notwithstanding the very welsurvey which gives the gold value of the come efforts of the Secretary of State of the national monetary units of a number of coun- United States to further international comtries on March 31, 1938, and March 31, 1939, mercial intercourse, which once more found respectively. expression in the trade agreement with Great The changes that occurred were all in a Britain, the results have until now remained downward direction. The most important considerably below what is desirable and was the movement of the French franc, which necessary. showed a further decline of its gold value In the light of the above it is not surprising by 13.60 per cent. After that comes the Jap- that the flow of gold to the United States did anese yen with 5.96 per cent followed at a not only continue but showed a substantial short distance by the pound sterling and the increase. The monetary gold stock of that Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1071 DECEMBER 1939 FEDERAL RESERVE BULLETIN country amounted to $12,760,000,000 at the in the gold stock of the Bank of England on end of 1937 and had risen to $14,512,000,000 account of the fact that that stock was still by the end of 1938. This increase exceeded valued at the old price. It is generally—and the total gold production of the world in 1938 rightly—admitted that this policy of reservby no less than $466,000,000. It has con- ing the profits of the revaluation is an obvious tinued during the current year, amounting requirement of sound financial management. in the first quarter to $746,000,000. Gold production.—The world's gold pro- These facts illustrate the lack of balance duction rose to 1,142,925 kilograms in 1938, in the economic structure of the world of to- thus exceeding the corresponding figure for day. Until the return of international con- 1937 by more than 5*4 per cent as against fidence, which forms the essential basis for an increase of 5 per cent from 1936 to 1937. a more extensive traffic in goods, credit and A new record was thus attained in the past capital, an improvement can hardly be ex- year. The value of the production amounted pected. The same applies to greater stability to $1,286,250,000 in United States dollars of in the rates of exchange. As to this point, the new parity. As has already been menit is perhaps an advantage that monetary tioned, considerably more than this amount manipulations are less in the center of inter- of gold flowed to the United States in 1938. est at present than they were a few years According to the statements made on the ago, because the inexpediency of such manip- subject it may be assumed that the monetary ulations is now recognized in wider circles, policy of the United States will be maintained. and because the freedom in the monetary fieldThe importance of this both to the world and which nearly all countries have now reserved to the country itself can hardly be overestifor themselves makes it less likely for an mated. There is no denying that the world individual country to be able to improve its price of gold is founded on this policy. If position by making use of this artificial de- the present fixed relation between the dollar vice. If this is correct, the essential impor- and gold were abandoned, a general monetary tance of a firm maintenance of the exchange dislocation would, in my opinion, set in, which rates is obvious, and its necessity should be would involve very detrimental consequences fully taken into account when conducting the for economic and financial conditions in the national economic and financial policy. wofld including America herself. The results The various equalization funds and cen- which the manipulations of various monetary tral banks have endeavored in close collabo- units have brought about have by no means ration to prevent serious shocks and violent fulfilled expectations. In no case can they fluctuations which, without this cooperation, form the foundation of an international monwould no doubt have arisen on several occa- etary system which could satisfactorily resions in the past year. In this connection place the gold standard. That it was possible the monetary agreement above referred to to attain a certain degree of stability of the has doubtless rendered a great service. Its rates of exchange is, I am convinced, to be maintenance and, as far as possible, its ex- attributed to the close connection with gold tension and strengthening are among the which was created by the scheme adopted in first requirements of practical politics. the United States. If experience, especially In Great Britain an act was passed on that of the last few years, has placed one February 28, 1939, to value the gold stock of fact beyond doubt, it is this, that we cannot the Central Bank once in each week.2 I can- dispense with gold as an international means not attach much importance to this measure of payment. This leads, in my opinion, to as a matter of principle. What has actually the inevitable conclusion that a fixed basis happened is, that a change has been made in on which gold is purchased and sold in the the method of bookkeeping, which has been various countries is necessary and that the brought more into line with reality. In this factors which govern the mutual relations connection it must be borne in mind that between cost and price levels in the countries almost the whole of the book profits which concerned must leave room for such modiresulted from the first revaluation, was trans- fications as are necessary to maintain this ferred to the Exchange Equalization Account basis. so that a reserve in the books of this fund Monetary gold stocks.—As regards the took the place of the latent reserve contained monetary gold stocks, the lack of complete data about the various equalization funds 2 See BULLETIN for April 1939, page 271. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1072 FEDERAL RESERVE BULLETIN DECEMBER 1939 makes it impossible, this year no less than pleading for more rapid progress along the last, to give an exact survey. The afflux of road of the above-mentioned financial and gold to six countries 3 exceeded the world's monetary measures, although the bad results gold production of the last four years by more in the countries where they have been most than 13 per cent. The flow to the four coun- consistently and extensively enforced are tries (the United States, Great Britain, Neth- obvious. erlands and Switzerland) whose stocks show I do not mean to say with the above that the an increase, exceeded the production by al- Netherlands could have maintained their old most $3,600,000,000. The uneven distribu- policy of laissez-faire under the circumstances tion of the monetary gold is clearly seen from which have developed in the world, and that these figures. It is also illustrated by the fact they could have refrained from all governthat more than 80 per cent of the total esti- ment interference with economic life. It is mated gold stock of the world is in the hands absolutely essential that foreign aggression of the six countries included in the list. This should be warded off, and that the means of maldistribution, as well as the still increasing the country's national existence should be gold production, are problems which have defended and maintained. But it is equally been pushed into the background under the essential fully to realize the necessity not only present circumstances and can only be solved of avoiding a rise in the cost of production when the world is prepared to return to and the cost of living in the Netherlands, but collaboration in the economic and financial of furthering a reduction in the level of these sphere. costs. In my opinion the future cannot be Conditions in the Netherlands.—What I faced confidently in this respect. The process have said above regarding the development of cartellizing, which is at present going on of the world applies on the whole also to the in the Netherlands under the guidance and Netherlands. There have been no important insistence of the Government, is sure to have differences between the course of events in an unfavorable effect. The same applies to this country and that in the world, as far as the considerable rise in the tariff of protecthe latter was not influenced by quite special tive import duties which became effective a circumstances. According to the figures and few months ago. If the Government interdata available, it cannot be said that developferes on a large scale with economic condiments in the Netherlands were unfavorable tions and the development of economic life, it as compared to those in other countries with cannot, in my opinion, refuse to take upon which comparisons can be made. The decline itself the care and responsibility for the level in trade which occurred in 1938 also made of the cost of production and the cost of livitself felt here. ing in the country itself, and for the main- What I have said above about the numertenance of the required equilibrium in this ous artificial and often contradictory measrespect with the principal countries with ures which render it difficult to make a correct which the Netherlands have to compete indiagnosis of the real situation and which are ternationally. It is not by means of export apt to increase rather than to diminish the bounties but only by the maintenance of the lack of balance in the economic structure, also required relation between the said costs at applies to the Netherlands. The Netherlands home and abroad, and by the gradual imtoo are continuing to restrict imports despite provement of this relation, that foreign comthe very exceptional importance of internapetition can be sustained with success. To tional trade and shipping to the country on my mind, there is every reason to pay close account of its geographic situation, its hisattention to this point. There is little doubt tory and the character of its population. In that there is a growing lack of equilibrium the Netherlands, too, one can trace the phebetween costs and prices in the "sheltered" nomena of increased government expenditure, part of Holland's economic life on the one a long series of growing budgetary deficits, hand, and costs and prices in those trades depreciation of the monetary unit and presand industries that are dependent on intersure on the consumer and on private enternational competition, on the other. It is to prise. It is strange that some circles are be feared that this disharmony will increase 3 The United States, Great Britain, France, Netherlands, as a result of the protective measures that Switzerland and Belgium; comparison is based on gold holdings, have been taken, and of the organization at the end of 1934 and 1938, of central banks of the six countries plus $1,800,000,000 in the United States Stabilization Fund. Gold among producers for the home market. in other equalization funds is left out of account. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1939 FEDERAL RESERVE BULLETIN 1073 The course of affairs just indicated seems tion has not penetrated sufficiently, and that, to me to involve danger for the international consequently, the impoverishment will aseconomic position of our country and for a sume larger proportions than is in accordance sound and lasting extension of employment. with the required provision for the future In this connection attention must also be of the country and the people. As things called to the new social and fiscal burdens look at present, the Dutch nation will not be which will weigh heavily on industry and able to maintain its present standard of livtrade if the measures proposed and an- ing. Unless it is prepared to make the innounced by the Government are accepted. evitable sacrifices now and, instead of clinging As far as I have been able to calculate, the to the maintenance of its nominal income, to additional burden which trade and industry cooperate in reducing public expenditure, will have to bear, as a result of the new meas- cost of production and cost of living, greater ures alluded to, will exceed 60,000,000 guil- sacrifices will be imposed by the force of ders a year. It is clear that this will reduce circumstances. Some time ago I cooperated still further the spirit of enterprise, the in a public appeal and warning against the possibilities to invest and the revival of tendency referred to above. I am firmly coneconomic life which are already so much vinced that that which was explained and hampered by existing circumstances and gov- emphasized in the document concerned, is ernment interference. Experience in other right and will be confirmed by future developcountries has repeatedly shown that a real ments. In the meanwhile it has appeared recovery is only attainable when business life that those who bear the responsibility are of can work and employ people on the founda- another opinion or in any case that they do tion of reasonable prospects and possibilities. not at present feel at liberty to act according It is difficult to understand how increased to the above-mentioned appeal. Under these social and fiscal burdens of such magnitude circumstances it is useless to enter into can be reconciled with the very correct further djetailed argumentation. The future opinion expressed by the Government itself, will have to pass judgment, and the facts will that a reduction of unemployment can best show how long and with what results the road be attained by creating such conditions for now taken can be followed. industry and trade as to enable them to em- The Netherlands Bank.—There were no ploy the largest possible number of work- changes of importance in the task and activimen. Very careful consideration should be ties of the Netherlands Bank during the past given to the questions whether, under the year. The management of the Equalization present circumstances, expensive social meas- Fund continued to demand constant attention ures are justified and whether economic life and extensive work. This applies to the in the Netherlands may in addition be bur- technical execution as well as to consultations dened with new taxes which will lead to with the Government and with the manageserious fiscal and economic consequences. I ments of foreign equalization funds and cendo not hesitate to answer these questions in tral banks. As is well known, the buying the negative. This does not mean that the and selling of gold, which was one of the state of affairs which has been arrived at in principal parts of the activities of the Nethergovernment finances, particularly as a result lands Bank, was transferred to the Equalizaof armament and unemployment expenditure, tion Fund when the gold standard was abandoes not call for radical measures. On the doned. In this way a source of profit was contrary, the budgetary prospects of the Gov- cut off, the comparative significance of which ernment and the municipalities make such had grown in connection with the extensive measures an urgent necessity. In order to gold movements of post-war years on the one preserve its most valuable asset, its freedom hand, and on account of the decline in the and independence, the Dutch nation will have Bank's credit business on the other. Experito make considerably heavier sacrifices than ence has shown that the remuneration which it has, until now, been prepared to make. the Bank receives for the management of the That under the prevailing circumstances a Fund is not sufficient to make good the loss certain loss of capital and reserves is as in- just mentioned. evitable in the Netherlands as it is elsewhere As regards the general line of development, may be true; but this does not alter the fact there is a considerable difference between the that a correct understanding of the real situayear under review and the year 1937-1938. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1074 FEDERAL RESERVE BULLETIN DECEMBER 1939 This difference does not lie in the character when the current items showed a credit balof the main factors which dominated gold ance. However carefully and conscientiously movements and the course of the rates of the official figures have been compiled, no exchange. As has already been recorded definite conclusions can be drawn from them above in connection with the general mone- as to the question whether, in a given year, tary situation, these factors again consisted the current items have been in equilibrium, mainly in capital movements. The difference or what the amount of the credit balance, if to which I am referring, lies in the fact that any, has been. For 1937 this becomes evident the capital movements of which I gave a when one sees that the figures leave an unshort survey in my last report, and which explained difference of no less than 499,000,caused the demand for guilders considerably 000 guilders, an amount which exceeds the to exceed the supply, did not continue in 1938- entire debit balance on merchandise account 1939. This can be seen from the figures of by 97,000,000 guilders. This does not alter the gold stock of the Netherlands Bank. Let the fact that the compilation and publication it be clearly understood, however, that they of the figures are of great importance in only indicate a tendency and are no gauge of order to indicate the direction in which the the extent of the movements. At the end of various known items are moving. It seems the financial year 1937-1938 the Bank's gold to me that the remittance relation between stock amounted to 1,466,200,000 guilders. the Netherlands and the Netherlands Indies After an initial increase to over 1,481,200,000 is a source of great difficulty in judging a guilders this level was maintained, with slight given year. For example, the profits of fluctuations, from the beginning of June, companies working in the Netherlands Indies 1938, to the beginning of December, 1938, are not remitted as separate amounts. They when it fell to 1,461,200,000. It started are included in the yield of the products exfalling again in the second half of February, ported, and the year in which they are re- 1939, and continued to do so until, by the end mitted rarely coincides with the year in which of the financial year, the gold stock had they are distributed among those entitled to diminished to 1,322,500,000 guilders. At the a share in these profits. The latter year, howtime of writing it amounts to 1,209,500,000 ever, is taken as that of the remittance in guilders. As can be deduced from these compiling the official figures. figures and from other data at our disposal, Although some reservations should be made capital is moving away from the Netheron account of what has just been said, it lands. The political factors, repeatedly reshould be pointed out that the import balance ferred to above, have led to the withdrawal for 1938 on merchandise account showed only of the foreign money that had sought refuge a decrease of 26,000,000 guilders as compared in the Netherlands. The buying of foreign— with 1937 while, on the other hand, the proespecially American—securities has also exceeds of the exp.orts from the Netherlands erted an influence, although this factor has Indies as well as the yield of the services rennot been so important as one might suppose dered by the Netherlands—on account of the judging by the number of foreign securities fall in freights—have suffered a considerable that have been* introduced here. Finally, decline. Considering the strong position of though one cannot speak of capital flight, there has been a certain transfer of liquid the guilder and its gold cover, this developfunds from the Netherlands to other coun- ment obviously constitutes no reason for tries. There is no reason to deplore this. anxiety. It may, to a certain extent, have That foreign funds which were held in the contributed in the direction of the capital Netherlands at short notice have gone again, movement referred to above. can only be considered as an advantage, while The depreciation of the guilder increased the other two factors mentioned above have during the financial year under review. On not in the least affected the position of the March 31, 1938, it amounted to 18.68 per Netherlands and of the guilder. cent as against 22.02 per cent on March 31, Another point which should be mentioned 1939. Thus the guilder once more arrived at in this connection, is that, as far as can be the level at which it stood at the beginning judged at present, the balance of payments of October 1936. While the percentage of of the Netherlands for 1938 presents a some- the depreciation decreased during the period what different picture from that for 1937, in which the demand for guilders exceeded Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1075 DECEMBER 1939 FEDERAL RESERVE BULLETIN the supply, it has increased now that the tive pressure on sterling. As Holland is one situation is reversed. of the parties to the monetary agreement, Although the extremely abundant supply the Netherlands Bank was among the cenon the money market has been somewhat in- tral banks to which the Bank of England fluenced by the efflux of gold, the quotationsaddressed itself in this connection, and we have nevertheless remained at a very low have gladly given the desired cooperation. level. Except during a few days in Septem- We were of opinion that speculation was inber 1938, signs of an upward tendency were deed playing an important part in weakening not perceived until the last month of the finan-the position of the British currency; and we cial year, and this largely under the influence felt that a further decline of sterling and of the international political situation. If with it of the monetary units of the counthis upward movement in money rates per- tries belonging to the sterling bloc, would sists, it may lead to the restoration of more involve serious consequences of a monetary normal conditions in the money market and and economic nature. We therefore invited enable the Netherlands Bank to regain its the commercial banks which had, a few years influence on that market. The conditions ago, joined the gentlemen's agreement to that were created by the strong flow of capital defend the guilder to collaborate; and to our to the Netherlands can hardly be considered satisfaction all institutions concerned desound. The efflux of foreign capital has had clared themselves ready to act according to practically no effect on the rates of interest our wishes. The measures taken by the in the money market. This is to be attributed British authorities had a favorable result. to the correct policy which the commercial Not only could the sterling-dollar rate be banks in the Netherlands have followed with maintained; it showed a marked improveregard to their liquidity. If, however, the ment by rising from 4.628 on January 3,1939, internal situation, apart from the withdrawal to 4.681 on March 31, 1939. of foreign money, should cause a contraction For the sake of completeness, mention on the money market, the inevitable conse- should be made of the fact that the embargo quences as to the rates of interest would have on the export of gold coin and gold bullion, to be accepted, although it would be advisable issued in this country when the gold standard to prevent the rates from going up too sud- was abandoned, and sanctioned by the act denly. Efforts to maintain the recent ab- of September 30, 1936 (Staatsblad No. 101), normally low rates of interest by artificial was repealed upon our suggestion by the interference must, in my opinion, be rejected Minister of Finance as from August 7, 1938. as unsound. In the long run they would, In practice, the embargo had already been moreover, be doomed to failure. suspended since June 17, 1937, licenses to When the British authorities took strong export gold having been granted freely and measures at the beginning of 1939 to defend on an unlimited scale from that date. By their currency and to restrict speculation virtue of the act of November 25, 1938 against sterling, the Bank of England asked (Staatsblad No. 408), the Minister of Finance the other parties to the monetary agreement is authorized to prohibit the export of gold to cooperate in these endeavors by putting a again under certain circumstances.4 stop, as far as possible, to gold transactions in their markets which might exert specula- 4 The text of the Act of September 30, 1936, as amended by the Act of November 25, 1938, is given on p. 1067. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1076 FEDERAL RESERVE BULLETIN DECEMBER 1939 BALANCE SHEET OF THE NETHERLANDS BANK AS OF MARCH 31, 1939, AND MARCH 31, 1938 [In thousands of guilders] March March March March Assets 31, 1939 31, 1938 Liabilities 31, 1939 31, 1938 Gold coin 106, 638 113, 557 Notes in circulation 1,014,184 934,313 Gold bullion 1, 215, 834 1, 352, 681 Current accounts 571, 493 877,879 Silver coin 23, 815 13, 744 Other demand liabilities 82 453 Correspondents abroad 6,011 4,291 Capital 20,000 20,000 Foreign bills. 2,700 5,400 Reserve fund 4,277 4,861 Domestic bills 9,728 9,111 Special reserve 7,757 7,102 Loans 73, 713 77, 718 Pension fund 12, 120 12,000 Advances in current account 221, 545 Unearned discount on domestic bills 6 3 Advances to the Government (law of May 27, 134, 310 Unearned discount on foreign bills 2 3 1932) Dividends payable 23 23 Investments in shares listed by the Amsterdam 7,630 Balance of profits at the disposal of the general Brokers' Association 34, 994 meeting 682 Shares of the Bank for International Settlements, 34, 525 of which 25 per cent is paid in 1,209 Other investments 1,209 7,784 Net balance with banking correspondents 8,657 619 Cash items _._ 253 66 Interest accrued on loans 35 542 Interest accrued on advances in current account.. 479 128 Interest accrued on investments 120 358 Commission account 351 71 Bank premises and furniture 40 4,580 4,580 Total assets.__ 1, 630, 626 1, 857, 306 Total liabilities. 1, 630, 626 lr 857, 306 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1077 DECEMBER 1939 FEDERAL RESERVE BULLETIN ANNUAL REPORT OF THE CENTRAL BANK OF THE ARGENTINE REPUBLIC The annual report of the Central Bank of the value of 202,000,000 pesos, decided upon the Argentine Republic for the fourth finan- by the National Government in 1937. The cial period, covering the year ending Decem- advantages of the first named procedure lie ber 31, 1938, was submitted by the Board of not only in the saving effected through not Directors to the Meeting of Shareholding actually moving the gold, but more particu- Banks in March 1939. Sections of the official larly in the fact that it can be released more English text are given herewith: promptly and freely with a minimum of undesirable psychological reactions. As usually happens when the trade cycle The experience gained in this matter has is in its downward phase, the balance of our taught a lesson which public opinion will not international payments for 1938 closed with fail to learn. In spite of the strain imposed a substantial deficit. It was therefore neceson them our monetary reserves are still subsary to make full use of the gold and foreign stantial. Their usefulness lies in their being currency holdings of the Exchange Fund employed at the right moment, provided that which thus fulfilled the specific purpose for the causes of the disturbing adverse balance which they were accumulated. are also attacked at once. This disequilibrium had its origin in the Even a cursory study of current events exodus of floating funds half-way through reveals the unmistakable presence, together 1937 and continued later as exports declined with certain new factors, of all the same while imports remained at a high level, elements which give their characteristic imthereby causing the deficit in our balance print to the undulating course of Argentine of payments to reach 582,000,000 pesos in economic life. In actual fact there is an 1938. Of this total the official and free exunbroken succession of periods of prosperity change markets were responsible for 313,and depression which have a fundamental 000,000 pesos and 269,000,000 pesos respectively.1 bearing in determining the monetary as well as the financial policy of the country. To meet this adverse balance it was neces- Although it is impossible to say how or in sary to release 461,000,000 pesos in gold and what particular form or at what precise foreign exchange from the Fund, in addition moment the turn in the tide is likely to occur to 121,000,000 pesos, obtained by the Naafter a period of prosperity, the knowledge tional Government from foreign loans. that such a moment will inevitably arrive It was possible to effect the whole of this should be sufficient to advise the timely adopconsiderable transfer of foreign exchange tion of measures tending to moderate the without causing any uneasiness amongst the range of the fluctuation or to palliate its general public who, in Argentina as in other social and economic consequences. countries, are apt to look upon gold exports Notwithstanding the fact that the characwith a degree of apprehension which is just teristic elements referred to above determine as exaggerated as the optimism engendered the course of the trade cycle now as on previby an influx of that metal. ous occasions in both the present and the This result may be considered to have juspast century, profound changes have taken tified the practice, adopted at a favorable place in the meantime in the economic strucmoment, of converting foreign exchange ture of the world, while both the domestic holdings into gold and keeping it earmarked and the international policy of the most imin the more important foreign centers rather portant nations has also undergone substanthan bringing it to this country. An exceptial modifications. The cycle continues to tion to this practice was the repatriation of follow its course, but under vastly different the gold belonging to the Exchange Fund to economic and political conditions which not NOTE: The report, available in the official English translation only powerfully influence its very intensity published by the Bank, contains in addition sections on profits and duration but also the nature, range, and for the year, administrative niatters, etc., together with statistical tables and charts. For earlier reports, see BULLETIN for August severity of its effects. 1938, September 1937 and July 1936. Quotations in New York of the Argentine peso based on buying Although monetary policy is being comrates for foreign currencies in the official market in Buenos Aires plicated by all these circumstances it is still averaged $0.31135 in December 1938. 1 The latter figure has been arrived at by calculating the rate necessary to base it on cyclical experience. at 15 pesos to the pound, so as to allow of the resulting total being added to the official market figure. Except where otherwise stated, In previous reports we have implicitly recogall figures regarding exchange are shown at the above mentioned nized this fact as, for instance, when we said rate. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1078 FEDERAL RESERVE BULLETIN DECEMBER 1939 in the report for 1936 that " in periods when other factors just mentioned are closely linked economic activity is on an upward trend an to foreign cyclical movements which thus exaggerated optimism frequently breeds the reflect on the Argentine trade cycle. germs of future misfortunes." The country The intensity and duration of our cycles was at that time definitely in the midst of an depend not only on the individual strength upward phase and we thought it timely to of each of those factors, but also on the time issue a reminder that such phases "are gen- and manner in which they happen to take erally limited in duration" and added that effect, either exerting pressure jointly or "therefore, the opportunities which they offsetting each other to a greater or lesser offer for remedying the consequences of past extent. evils and for accumulating reserves for times The first outward signs of the upward of stress for which it is wise to be prepared, phase make their appearance in the balance should not be missed." of payments. An increase in exports, or In the present report we shall again have larger investments of foreign capital, or both to discuss monetary policy in the light of these factors at once, produce a favorable these periodically recurring events. It will balance which immediately reacts on the not therefore be out of place to outline briefly internal monetary position. The mechanism the characteristic features of the Argentine of this reaction is extremely simple. As a trade cycle and the monetary disturbances consequence of the favorable balance the which usually take place during its course. supply of foreign exchange in the market Our trade cycle differs from those of the great exceeds the demand. The banks purchase industrial and creditor nations and the les- the excess exchange and credit or deposit the sons of an experience distinct from our own corresponding amounts in Argentine curwould be of little use in explaining it. To rency in the sellers' current accounts. In interpret it aright we must therefore analyze their turn, the banks usually transfer the the facts peculiar to our own country and to excess exchange bought from their customers this purpose the following chapter will be to the Central Bank, which in the same way devoted. credits the banks with the equivalent amount and thus creates fresh banking funds,2 while THE TRADE CYCLE AND MONETARY POLICY holding the exchange as such, or converted into gold, until the occasion for using it arises. Characteristic features of our trade cycle.— A first conclusion may be drawn from the A study of the Argentine trade cycle from foregoing, namely that a favorable balance the academic standpoint does not, of course, in our international accounts is immediately come within the scope of this chapter. We reflected in a parallel expansion in the availpropose to confine ourselves to a brief outable media of payment, through an increase line of its working, as reflected in the experiin current account deposits and a similar ence of former times and in the course of expansion of bank cash reserves deposited events which have come under our own direct in the Central Bank. observation, and to a recapitulation of prece- The increase in the media of payment is dents which, although already generally distributed in the first place among those known, will enable us to see in better persections of the population that benefit directly spective the occurrences dealt with in this from increased exports or from foreign capireport and to set forth clearly the aims of tal investments, and the purchasing power our monetary policy. of those sections is consequently enhanced Argentina being both an agricultural counto an equivalent extent. The general demand try and a field for the investment of foreign for goods and services is thereby increased, capital, the trend of the oscillations of the and imports, which in this country are extrade cycle is determined, on the one hand tremely sensitive to such an expansion, soon by the variations in the physical volume and feel the resulting stimulus. prices of the products of the soil and by the Media of payment and imports.—In fact, extent to which they are absorbed by the imports tend to follow closely the growth in world markets, and on the other, by the the volume of media of payment. At first greater or lesser inflow of foreign capital. Apart from the varying fortunes of agricul- 3 Under the Caja de Conversion system the working was identitural and pastoral production, which are of cal except that the banks instead of selling exchange surrendered gold, and the Caja instead of crediting them with the equivalent course dependent on weather conditions, the amount paid them in notes. The effects on the monetary system are exactly the same. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN 1079 DECEMBER 1939 sight this would not seem to be the case, inas- has on the balance of payments. It is a much as only a part of the goods consumed matter of cardinal importance for Argentine are of foreign origin and home industries monetary policy that these consequences supply an increasing proportion of national should be fully recognized. Furthermore, if requirements. However, a closer study of we think over the example given we will be the problem will show our contention to be led to a better appreciation of the diverse well founded. Let us suppose, to take a very positions in which different countries find simple example, that of the total goods and themselves in regard to the oft recommended services required by the population only 20 policy of artificially expanding the volume per cent are imported; let us suppose further of media of payment with a view to encouragthat the increase in the media of payment ing internal economic activity. In countries amounts to 300,000,000 pesos and that the where only a negligible part of the goods conwhole of this sum is spent by its recipients. sumed by the population are imported, the Of this increase in demand, on the basis of disturbing effects of such a policy on the balthe percentage just stated, imports would ance of payments are naturally less serious obtain 60,000,000 pesos while the remaining than in a country like ours where imported 240,000,000 pesos would be satisfied by do-goods supply a very important part of the mestic manufactures and services, which requirements of the population and of inwould thus benefit to that extent by the dustry. expansion in purchasing power. If we sup- As imports increase, due to the close relapose further that of those 240,000,000 pesos 20 tionship which exists between them and the per cent is also expended on foreign articles media of payment, the gold and foreign ex- (and the percentage might be altered without change which had previously entered the affecting the final result), imports would be country as a result of the favorable balance further increased by 48,000,000 pesos and an of payments tend to flow outwards again and equivalent volume of media of payment would a corresponding volume of media of payment be thereby eliminated. The residue of 192,is thereby eliminated. In all this process 000,000 pesos would go to increase the purthere are no monetary disturbances of any chasing power of those whom it now reaches. kind, although the resulting fluctuations in In this way if we continued our analysis we economic activity bring in their train consewould find that in passing from hand to hand quences of another nature which will be dealt the volume of purchasing power originally with below. put into circulation has an ever widening Disturbances caused by credit expansion.— sphere of action. At each stage a portion of the transferred purchasing power is devoted The monetary disturbances of a trade cycle to imports which gradually increase and in really begin when credit expansion creates this way approach a total value approxi- further media of payment in addition to those mately equivalent to the initial 300,000,000 already resulting from a favorable balance pesos increase in purchasing power. of payments. Let us now see how this particular diffi- The example given is, of course, only a culty, which has been so frequent an occurrough outline wherein it has been taken for rence in our monetary history, comes about. granted that domestic production of goods When, in accordance with the procedure deand services is capable of being increased to scribed above, the commercial banks transfer a very considerable extent, as happens when to the bank of issue (whether it be the Caja there is serious unemployment. If such exde Conversion or the Central Bank) the expansion were not possible and the additional demand could not be met by local producers, 3 The play of the many variable factors which complicate all the enhanced purchasing power would flow real economic problems alters the numerical ratios in our example. If the increased purchasing power goes into savings rather than more quickly and easily into the hands of the into expenditure on goods and services, the growth of imports will import trade after changing hands less often, l b a e t e p s ro a p ls o o r t a io ff n e a c l t l s y t l h e e s s w . or T k h in e g v o a f r y t i h n e g p r r a o te ce s a s t , w as h i a c l h s o m d o o n e e s y th c e ir c i u n - or, in other words, after giving a lesser im- crease in the public requirements of currency. In this way the approach of imports to the 300,000,000 pesos mark in the example petus to internal trade.3 quoted would be in inverse ratio to the volume of funds withheld at each stage for such increased currency requirements. On the We would have omitted this explanation other hand, if the expansion in the media of payment has its origin in the investment of foreign capital, there is a correspondhad it not, apart from elucidating an impor- ing increase in the volume of financial services which have to be tant point, furnished us with an opportunity remitted abroad, an equivalent volume of purchasing power is therefore eliminated and the growth of imports is diminished in to stress the effects which a credit expansion a similar measure. In other similar ways our example could be further complicated to an infinite degree. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1080 FEDERAL RESERVE BULLETIN DECEMBER 1939 cess gold or foreign exchange which they of which are fundamentally the same as those have purchased, they increase their available following the issue of bank-notes.4 funds to an equivalent extent. Each bank, as This then is the cause of the monetary difis only to be expected, seeks to take advan- ficulties to which our trade cycle is liable and tage of this increase in funds to extend its which are apt to degenerate into a severe loan operations, more especially if the ratio crisis. These difficulties are not inherent to of its cash reserves to deposits was previ- the course of the cycle, although they very ously satisfactory. In this respect, it is a frequently accompany it as a consequence of well known and easily explained fact that the the natural and spontaneous reaction of the banks, through the medium of credit expan- banks when confronted with an increase in sion, can create additional deposits in current their cash reserves. account two, three, or more times greater— This is, of course, a very summary descripaccording to circumstances and to the greater tion in which the process has been simplified or lesser degree of caution exercised by the as much as possible by eliminating the varimanagement—than the total fresh funds ous peculiarities and complications which which they receive. have characterized its working in our coun- Be that as it may, the media of payment try. thus created have exactly the same effects Normal banking credit.—In the foregoing when released on the market as those derived explanation no account was taken of the type from the inflow of gold and foreign exchange. of loans granted, volume being the sole cri- But, whereas the increased imports originat- terion adopted. It is a matter of some iming from the latter can be paid for with that portance to elucidate this point as credit same gold and exchange, imports promoted expansion need not necessarily involve risk or by the circulating media created by new bank give rise to excessive speculation, as has been loans have to be paid for out of the gold re- not infrequently noted in these inflationary serves previously lying in the bank of issue. movements. It is quite possible indeed to Here lies the essentially disturbing char- imagine eminently sound and desirable transactions from the economic point of view which acter of this form of credit expansion. The have nevertheless contributed to monetary inflated imports thus upset the equilibrium difficulties, either because the amounts loaned of the balance of payments and bring about were very large or because they involved an a pressure on the exchange market which inundue immobilization of banking funds. creases proportionally to the degree of credit expansion which has taken place. The short- It is therefore imperative that our views age resulting from the excess of demand on this question should be well defined, inasover supply of exchange must be covered by much as they constitute the basis of the recommendations issued by the Central Bank the release of gold or foreign exchange from to the commercial banks last year, advising the reserves and if the media of payment, notcaution in granting new loans and in fixing withstanding these unmistakable symptoms their date of maturity. In the first place it of inflation, continue to grow due to further is essential to distinguish between investment credit expansion, the continued dwindling of loans, or other operations involving the immonetary reserves and the parallel shrinkage mobilization of funds, and what might be in cash reserves at the banks are not long in termed the normal credit requirements of forcing the country off the gold standard, or ordinary business. To provide for these latto a further currency depreciation if the gold ter is the specific function of deposit and disstandard has already been abandoned, as has count banks. This type of transaction is of more than once been proved by the grave a liquid character, whereas operations of the events which have occurred in our monetary former class belong to the investment catehistory. This goes to prove the validity in gory and can only be liquidated slowly, for this country also of that ancient principle which reason they must be kept within pruwhich lays down that redundant media of dent limits if monetary soundness is to be payment—those of which we write may well preserved. be so described—tend to force monetary reserves out of the country. Depreciation be- 4 This is not the only cause of currency depreciation. It can also originate in a disequilibrium of the balance of payments comes more aggravated as long as there is a brought about by a persistent fall in prices which gradually regrowth of current account deposits originat- duces exports, as well as by the unbalanced position resulting from an expansion of the circulating media. The price factor ing in the grant of larger credits, the effects played a very important part in the late depression although in its early stages credit inflation was the predominant influence. 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DECEMBER 1939 FEDERAL RESERVE BULLETIN 1081 Such normal banking credit presupposes lated to a greater extent than it would be by easy liquidation, since its purpose is the the requirements of the rural population. prompt sale to the consumer of goods which Conversely, a decline in the value of agriculare produced, imported, and placed on the tural and pastoral production becomes acmarket with the help of that credit. It also centuated in its depressing effects when reimplies the creation of fresh purchasing flected on general business activity. power by the banks, but only for the rela- Temporary immobilizations of normal tively short space of time which elapses in credit.—If the trend of rural production, the normal course of business between the trade, and credit, are so powerfully affected production or importation of the goods and by agricultural and pastoral prospects, it is payment being made for them by the con- only natural that in the measure in which resumer. There is thus at all times a consider- sults do not come up to expectations, certain able volume of credit which is in process of characteristic disturbances should frequently repayment, after which it is re-applied to make their appearance and call into play the new transactions in the ordinary routine of elasticity of a good banking and currency business. system. The process of production, whether on the It happens in such cases that both imports farm or in the factory, as well as trade in and local industrial production exceed the real general, is carried on to a great extent with consumptive capacity of the market. Sales the help of banking credit, which thus assists are therefore not up to expectations and conin providing that part of the population which sequently loans cannot be paid off within the depends directly or indirectly on these activi- prescribed time limit. Credits therefore beties with the purchasing power which it needs come immobilized not because of their nature in order to continue its consumption of both but by force of circumstances and loaned imported articles and domestic goods or funds are slow in returning to the banks. services. In addition, with exports also falling below The tempo of these activities, and conse- expectations and imports unduly high, gold quently that of the banking loans used for and foreign exchange have to be released to them, is largely determined by the prospects cover the deficit in the balance of payments. of future sales of the goods dealt in by these However, this adverse balance is purely temproducers or traders, and also on the varying porary as imports tend to decline of their own foreign demand for those goods. Being thus accord when the purchasing power originatdependent on future sales, purchasing power ing in rural production diminishes. All these created by normal banking credit is neces- are normal happenings in an agricultural sarily of limited duration except in certain country and the cash holdings of the banks, special cases which will be dealt with later. as well as the monetary reserves of the Cen- Future sales prospects are the object of in- tral Bank, should be sufficient to face such numerable surmises by producers, traders, difficulties without resorting to stringent manufacturers, and bankers, and are conse- credit restriction, which in these circumstances would defeat its own ends.5 quently affected by the psychological currents of optimism and pessimism which influence It is easy to understand that the ability of the trend of business. Argentina being an the banks to withstand these unavoidable agricultural country, such surmises refer credit immobilizations depends on the degree mainly to the prospects for agricultural and to which they have previously refrained from pastoral products because of their far-reach- immobilizing funds in financing or investment operations. ing effects on the general business situation. The above is an outline of the nature of In fact, an increase in the value of rural pronormal banking credit and of the important duction, apart from its direct influence on function which banks perform through its imports, not only creates a proportionately medium. It is for them a duty, requiring greater demand for domestic goods and servboth prudence and ability, to provide busiices by the rural population, but also increases ness with media of payment adequate to the the demand of the producers and sellers of degree of activity prevailing at any given those goods and services, and of those who, in their turn, supply these latter with the 5 We refer, of course, to a general restriction and not to such articles they consume; and so on indefinitely. liemitations as it may be desirable to introduce with regard to certain branches of economic activity where a salutary liquidation, Internal business activity is thereby stimu- destined to correct past errors or excesses, may be deemed necessary. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1082 FEDERAL RESERVE BULLETIN DECEMBER 1939 time. Concurrently, it is the duty of the from those who accumulate them to the bor- Central Bank to provide the banks with the rowers who invest it in their enterprises, supplementary resources which they may bank loans, as already shown, create a fresh need to ensure that genuine business dealings volume of purchasing power. If a private are not held up for lack of circulating media. enterprise or a public department makes an This is one of the main purposes of redis- issue on the market instead of borrowing counting which, by the nature of the need from the banks and thereafter spends the it is intended to satisfy, can only be effected funds so obtained, no monetary consequences with readily collectible short-term paper which may affect imports and the balance of corresponding to real and actual transfers payments are entailed. But such conseof merchandise or, in other words, with paper quences would assuredly follow if the securioriginating in a producing or a trading opera- ties, instead of being acquired by the public tion based on the sale of goods and with the out of their savings, were taken up by the expectation of their proximate consumption. banks. In this case the banks would be Distinction between credit and savings.— creating fresh purchasing power and trans- As already stated, a marked distinction must ferring it to the issuer of the securities. In be drawn between the two forms of credit passing we would mention that this is a mentioned above. In normal credit opera- factor of considerable practical importance, tions immobilization of funds and excessive and was one of the chief reasons for the imports are merely incidental risks. On the establishment of the short-term bill market, other hand, in financing operations and long- as explained in the corresponding chapter of term investments immobilization is the direct this report. and inevitable consequence of the opera- However, it must not be forgotten that in tions themselves, and the purchasing power this country the banks receive a considerable launched on the market thereby contributes portion of the savings of the population. at once to the over-expansion of imports, Consequently they act not only as creators inasmuch as these operations are not con- of purchasing power but also as intermedinected with an immediate sale of goods which aries between savings depositors and busidepends on the prospects of agricultural nessmen wishing to borrow those funds, or in production and its export. Furthermore, other words as distributing agents for the and in contrast to the course of events in savings of the public. normal credits, no corrective reaction follows. An important conclusion may be drawn On the contrary, as long as the expansion in from the above. If the banks embark on financing or investment loans remains un- financing or investment operations utilizing checked, the growth of imports, and the drain for such purposes only a prudent percentage on monetary reserves, will continue. of new savings deposits (inasmuch as previ- All this is strictly in accordance with the ous ones are already invested in one form or acknowledged principle of liquidity in bank another) they do not bring fresh purchasing portfolios, a principle which, like many other power into being, but only transfer a part ancient monetary truths, has been and still of what they have received from the public. is entirely borne out by experience. Financ- In this case, and always provided they make ing and investment operations are really adequate provision to meet such withdrawals contributions of capital which can only be as past experience tells them to expect, such repaid slowly and therefore can only be un- financing or investment loans involve no dertaken with funds accumulated through monetary dangers and are exposed only to the saving which, when all is said and done, is risks inseparable from this class of business. the only means of building up capital. The But if this limit is exceeded the monetary roles of bank credit and saving have, it is consequences already described are unavoidtrue, been frequently confused and such con- able whatever the nature or purpose of the fusion is easily understandable in new coun- investments, whether they are first class tries which lack the great mass of savings mortgages, advances to finance the developwhich their economic development requires. ment of promising industries, or credits to If savings could be replaced by credit this promote public or private works of an unproblem would be very easily solved. deniably productive character. Whereas the utilization of savings merely In short, it is a dangerous illusion to think signifies a transfer of purchasing power that these operations, however praiseworthy Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1939 FEDERAL RESERVE BULLETIN 1083 they may be, can be carried on beyond the ports fall and the inflow of foreign capital limits referred to by resorting to banking either dwindles or ceases altogether, while forexpedients to cover the lack of local capital. eign financial services increase. The down- The failure to recognize this elementary prin- ward phase then begins. The gold and foreign ciple leads inevitably to depleting monetary exchange which previously poured in now reserves or to floating foreign loans to coun- flows out again, while the drop in purchasing terbalance a deficit in the balance of pay- power causes a decline in industrial and ments. business activity and a shrinkage in imports. The trade cycle and monetary disturbances. These events tend to restore the balance and —A more accurate appraisal of the working if no credit expansion has taken place no of the cycle is now possible. During the up- major monetary difficulties need be feared. ward phase imports, internal industrial ac- Nevertheless the problem of the trade cycle tivity, and business in general, increase. is a serious one, since all the economic activi- Prosperity reigns. This is the outcome of the ties of the nation—as can be clearly seen expansion in the circulating media caused by from the appended chart—are continually the gold and foreign exchange which enter subject to these successive periods of expanthe country as a result of increased exports sion and contraction which can be extremely and investments of foreign capital. The troublesome if the change of trend is both subsequent expansion in imports tends to sudden and severe. Government finance also disturb the balance of the international pay- suffers from the same causes, increased revements and this disturbance becomes accen- nues and bond issues encourage larger extuated at the moment when, inevitably, ex- penditure which cannot be so easily curtailed when the tide turns. If there has been credit expansion the THE ARGENTINE TRADE CYCLE AS REFLECTED IN THE PRINCIPAL ECONOMIC INDICES fresh purchasing power which it creates (Twelve months moving averages) stimulates the upward trend during the boom period, and both internal trade and imports Logantlmk scale advance more rapidly. If when the downward phase commences, and both exports and investments of foreign capital6 fall, credit expansion continues, either because of its own momentum or of a budget deficit, imports and internal business activity tend at first to maintain their level and later to decrease less than they would otherwise have done. This causes a heavier deficit in the balance of payments and a corresponding outflow of gold and foreign exchange. Monetary disturbances are therefore more or less serious according to the degree of inflation which has taken place. 6 We have not dealt with investments of floating funds from abroad as they are a recent development and did not occur in former cycles. In our previous report we discussed the difficulties which these funds brought in their train. Considerable investments of this kind were made during the upward phase of the present cycle from 1935 onwards and contributed to accentuate it, but when half-way through 1937 there appeared the first signs that the upward phase was coming to an end a considerable volume of floating funds took hurried flight, while the previous inflow of long-term foreign capital investments shrunk more and more. We do not intend to repeat what we wrote in the report for that year concerning the monetary disturbances which these funds caused but shall confine ourselves to summarizing briefly their influence on the course of the cycle. When floating funds enter the country their effect on the monetary system is the same as that so frequently observed in the past with regard to investments of long-term foreign capital, namely, increased imports and utilization of the exchange which had previously come into the country. Later, the floating funds withdraw at the most unexpected moment and entail a further outflow of exchange reserves. In this way floating funds tend to double the demand for exchange: first to pay for the imports which they originate, and, afterwards, to cover their own withdrawal. Far from having the counterbalancing effect that might have been imagined, these movements of funds tend to aggravate the consequences of the cyclical fluctuations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1084 FEDERAL RESERVE BULLETIN DECEMBER 1939 It should be noted, however, that credit in gold from the Caja de Conversion on comexpansion is neither necessary nor unavoid- mencing operations. The conversion of those able, although, as has so often happened in holdings into banknotes would, therefore, Argentina, it sometimes occurs spontane- have doubled the total note issue. ously as an outcome of the increase of bank To achieve the object outlined above, the reserves. It can be prevented by the adop- Central Bank first resorted to Certificates tion of timely and cautious measures by the of Participation in Consolidated Treasury banks and of an adequate policy of monetary Bonds, then to Treasury Bills specially auabsorption by the Central Bank. This will thorized by the National Government for the be the subject of the following chapter. purpose, and, finally, created Gold and For- The above concludes the review of the eign Exchange Holding Certificates to suptypical features of the Argentine trade cycle. plement the action of the Participation They still exert their influence today as they Certificates. did formerly, but under the sway of the great The following table gives an idea of the changes which have taken place in the ecomagnitude of these operations. nomic and political structure of the world and which alter the intensity, duration, and complexity of the cyclical fluctuations. These ABSORPTION OF BANKING FUNDS BY THE CENTRAL circumstances make new demands on mone- BANK tary policy, demands which will be more easily met if the factors which affect mone- Volume of funds absorbed tary policy are more clearly understood and Certificates Treasury Cash its purpose more generally recognized. If of Participa- bills issued Gold and holdthis and succeeding chapters help to achieve End of: tion in Con- for the pur- Foreign ings solidated chase of Exchange Total of the those ends they will have served their main Treasury Gold and Holding banks2 purpose. Bon v d al s u ( e R ) eal Ex F c o h r a e n ig g n e 1 Certificates MONETARY ABSORPTION AND THE PROBLEM OF THE (In millions of pesos) CYCLE 1936 January 27? 7 272.7 739.1 The absorption of banking funds.—In the February __. 242.8 242.8 768.7 preceding chapter we have sought to describe March 223.2 223.2 812.9 April 186.9 186.9 829.4 certain phenomena of great significance to May 323.0 323.0 743.5 June 342.9 342.9 722.9 our monetary policy without attempting to July 347.0 347.0 690.3 discuss the policy itself. This we have done A Se u p g t u e s m t ber.. 3 33 1 0 1 . . 0 5 3 3 1 3 1 0. . 0 5 6 7 5 1 9 4 . . 4 0 deliberately so as to avoid confusion between October 323.4 323.4 747.6 November. _ 347.2 34.4 381.6 775.8 our examination of the facts and the meas- December... 397.0 67.5 464.5 772.1 ures suggested for dealing with them. 1937 The time for discussing these measures January 397.0 82.2 479.2 793.7 February. — 397.0 93.8 75.0 565.8 796.4 has now arrived, after having established March 397.0 98.0 172.5 667.5 772.5 that the source of monetary disturbances in April 370.9 100.0 204.0 674.9 829.0 May 365.4 94.0 248.4 707.8 772.9 the trade cycle lies in a spontaneous move- June 356.2 77.0 251.8 685.0 840.1 July 356.2 88.0 269.1 713.3 829.7 ment towards credit expansion which appears August 364.4 93.6 283.3 741.3 761.9 whenever funds derived from a favorable in- S O e c p to te b m er ber.. 3 35 7 5 1 . . 5 1 6 63 3 . . 6 6 2 2 8 7 2 6 . . 6 1 7 69 1 5 7 . . 2 3 7 7 3 80 7 . . 2 1 ternational balance accumulate in the banks. November. . 331.0 63.6 249.3 643.9 721.5 December. _. 309.1 63.6 234.6 607.3 689.7 It will be understood therefore that the absorption or sterilization of those funds is one Janua 1 r 9 y 38 300.5 63.6 196.9 561.0 709. 2 of the principal aims of monetary policy. February... 281.3 63.6 . 183.3 528.2 739.5 March 304.4 63.6 183.3 551.3 701.4 We shall not repeat what we have written April 266.7 63.6 147.8 478.1 752.8 on this subject in former reports. It will May 289.0 63.6 128.6 481.2 663.3 June 332.3 63.6 86.6 482.5 651.0 suffice to recall that the Central Bank judged July 306.5 63.6 72.8 442.9 683.4 August 275.3 63.6 67.7 406.6 717.5 it indispensable to carry into effect a policy September.. 357.7 63.6 12.5 433.8 682.7 of absorption in order to preserve the country October 352.9 63.6 416.5 678.7 November.. 314.4 63.6 40.0 418.0 670.6 from the dangers of a plethora of funds. In December... 300.1 63.6 10.0 373.7 630.9 April 1937 the total gold and foreign exchange holdings reached the huge sum of 1,224,000,- 1 The funds obtained from these bills were used in due course for the repatriation of dollar indebtedness. 000 pesos, by a strange coincidence the very 2 Comprises the principal banking institutions which hold approxisame amount that the Central Bank received mately 93 per cent of the reserves and deposits corresponding to institutions governed by the Banking Law. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER FEDERAL RESERVE BULLETIN 1085 In August 1937 banking funds absorbed cline in the volume of media of payment by these means reached their maximum level caused by the outflow of foreign exchange of 741,000,000 pesos, the banks having been has been less considerable than it would otherprovided with this incentive to invest their wise have been. This circumstance has unsurplus funds temporarily in these categories doubtedly assisted in keeping internal trade of paper. In this way they were not forced at a comparatively high level in relation to to increase their loans and investments in the the heavy fall in exports. But, as is only market unduly. natural, it has also tended to keep imports at a high level, so much so that, as mentioned LOANS, MEDIA OF PAYMENT AND BANKING FUNDS ABSORBED. in the introduction to this report, this has Millions of pesos been one of the main factors in the disequilibrium of the balance of payments. In view of the trend revealed by imports, the National Government decided to institute prior exchange permits for the importation of all goods paid for through the free market, which goods in 1938 were valued at 335,000,- 000 pesos.8 This measure, efficiently and flexibly applied, will make it possible to regulate the volume of imports to the country's real capacity to pay, and within limits compatible with the prudent use of monetary reserves. i I i i i i i i i i i i i I t i i i i i i It is reasonable to expect, and indeed it is J. F. M. A. M. J. J. A. S. O. N. D. J. F. M. A. M. J. J. A. S. O. N. D. J. F. M. A. M. J. J A. S. O. N. aD.lready happening, that the purchasing power 1936 1937 193S which, as a consequence of these measures, The effects of the launching on the market can no longer encourage a disproportionate of those surplus funds can be readily imagexpansion of imports, will be diverted prinined if it is borne in mind that, despite the cipally towards industry, except insofar as considerable amounts which the Central Bank this purchasing power is converted into savwas able to absorb, there was at certain moings and these savings remain unused in the ments considerable competition amongst the banks. As a Consequence, industry, which banks in placing funds. Fortunately it was would otherwise suffer much more severely found possible to ease the situation later, due from the marked decline in exports, as exto the banks cooperating in joint measures plained in the previous chapter, will not only designed to restore competition to its rightful be able to mitigate these effects to an appresphere, as explained in our previous report. ciable extent but in some branches may even During the upward phase of the cycle credit be able to regain the level of prosperous expansion was kept within reasonable limits times. in relation to the volume of surplus banking The far-reaching importance for the nafunds available, as can be seen from the tional economy of these events must, of accompanying chart. course, be recognized as also the desirability But later, as the downward phase developed that they should follow their course under from the middle of 1937 onwards, bank loans the most favorable conditions, taking timely expanded continuously. The normal credit precautions against certain dangers which requirements of business had not really inare not difficult to discern. creased, the expansion being more the out- In economics, reactions are not infrequently come of the application of the Agrarian Credit observed comparable with those of a living Law, of the advances made to the Grain Reguorganism, whose passing phases of depression lating Board to finance its purchases, and of can be alleviated by the use of certain stimugovernment requirements.7 lants, but only in carefully measured doses Promotion of internal business activity.— and when strictly necessary, so as to prevent By virtue of the above fact, the cyclical dea dangerous habit being formed. The effect 7 Of the 226,000,000 pesos increase in the net loans and in- of credit on economic life is very similar, it vestments of the banks in 1938, 92,000,000 correspond to the Agrarian Credit Law, 45,000,000 to the Grain Regulating Board, 8 Taking the exchange rates at which the operations were 27,000,000 to government requirements, and the remainder to effected. Calculated at 15 pesos to the pound sterling they come other loans and investments. to 266,000,000 pesos. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1086 FEDERAL RESERVE BULLETIN DECEMBER 1939 must only be resorted to when absolutely This is therefore a real reserve of purchasnecessary as an undue expansion would in- ing power which, like all reserves, is built up evitably lead to very serious consequences. during prosperous times for use in adverse The industrial capacity of the country is conditions. But there is a fundamental diflimited and if purchasing power is created ference between a general reserve of this beyond a certain point production could not kind and a reserve which a private individual continue to develop. A rise in prices of both deems it wise to make. Anyone who deposits locally manufactured and imported goods his savings in a bank or invests them in bonds would follow with the consequent adverse is building up an individual reserve, but is effect on the cost of living. not contributing to a general reserve for the Once this point at which industry is oper- community, inasmuch as the bank or the ating at full capacity has been passed, it issuer of the bonds re-launches that purchaswould be unwise to encourage its further ing power on the market by lending or spendgrowth by means of bank loans. Times are ing the funds thus received. not propitious for such an expansion, firstly Consequently, the accumulation of a genbecause it would cause an increase in credit eral reserve for the purpose of influencing immobilizations, and secondly because it cyclical fluctuations requires that the purwould lead to undesirable over-capitalization, chasing power so accumulated should be neuto excessive investments in industrial plant tralized or sterilized, until the moment arrives under the fictitious stimulus of a growth of for setting it free. purchasing power which, when it goes back To render the application of such a policy to a normal level, would give rise to serious possible in this country, the establishment of over-production. a market for short-term paper is imperative, Finally, circumstances having confronted apart from the possibility of using long-term us with this emergency, it behooves us to bonds for this purpose, which will be dealt spare no effort to ensure that the beneficial with later. Due to the absence of a market results of alleviating the industrial depres- of this kind, the Central Bank has had to consion and preventing the spread of unemploy- fine itself to placing its absorption Certificates ment shall entail the least possible dislocation with the banks, and not among the public. of the subsequent economic development of In this way it has withdrawn a considerable the country, and more particularly of the portion of the surplus banking funds without monetary system. affecting the volume of deposits in current Absorption of purchasing power.—From account or that of currency in the hands of everything that has been said in this and the the public, which between them constitute preceding chapter it follows that monetary the bulk of the purchasing power of the popupolicy when faced with a trade depression lation. Furthermore, the placing of paper can aim at two different objectives. The first of this kind with the banks has been proved is to prevent credit expansion from accentu- in practice to lack the necessary efficacy, beating the severity of the cyclical fluctuations cause it is a temporary form of investment and from causing an adverse balance of pay- which can be quickly liquidated if it is desired ments which increases in proportion to the to invest the funds in another way. On the excess of imports. The second objective goes contrary, the placing of these Certificates on further, it aims not only at preventing the the market would have the following consefluctuations from becoming accentuated but quences : the public would draw on their curat diminishing their range and the extent to rent accounts with the banks to pay the Cenwhich the volume of purchasing power varies tral Bank which issues the Certificates, and during the cycle, in order to moderate the the banks would thereupon transfer the coreffects of these variations on the volume of responding funds to the Central Bank, which internal trade. would promptly withdraw them from circula- Naturally, to achieve this latter object it tion, as it does at present with the funds dewould be necessary to withdraw from the rived from subscriptions to Certificates. In market part of the purchasing power derived this way the funds in question would be defifrom increased exports and from foreign nitely withdrawn from the banks, and there capital investments, sterilizing it until the would be no possibility of their being utilized downward phase of the cycle begins and it for credit expansion as long as the Central should be expedient once again to release it. Bank pursued its absorption policy. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1087 DECEMBER 1939 FEDERAL RESERVE BULLETIN For these reasons the gradual establish- short-term paper—a task which can be ment of a market for short-term paper is of neither quickly nor easily accomplished—is great importance from the monetary point all that is required for the efficient application of view. It is also important from the finan- of such a policy, as the same means which cial standpoint as it would allow of the tem- the Central Bank has used for the absorption porary financing of government expenditure of funds could serve this purpose without when the unevenness of revenue collections any substantial change in the financial basis is the cause of a shortage of funds, or the of such operations. moment is not propitious for the issue of The idea of exerting influence on cyclical long-term bonds. This explains the efforts fluctuations in this fashion, so far as the finanmade during the past financial year to develop cial policy of the Government is concerned, a market of this kind through the placing of has already been the subject of a very inter- Treasury Bills by public tender, as will be esting study published in the latest Annual seen in the following chapter. Report of the Ministry of Finance.9 In com- The absorption policy could also be put into menting on public works expenditure during practice by placing long-term bonds with the the last decade, it is pointed out that the public and sterilizing the media of payment maximum was reached "at the culminating received against them. The Central Bank, in moment of our trade cycle, since the year gradually accumulating bond holdings, which 1937 may be thus considered. On the conwhen it completes its fourth year of existence trary, when depression was at its worst bein a few months time will have reached the tween 1931 and 1933 expenditure on public considerable figure of 50,000,000 pesos, has works dropped to its lowest levels. The State not failed to envisage this possibility, as will with its programme of public works has be explained in the corresponding chapter therefore followed the same trend as the of the report. It is conceivable that, in the cyclical movements of our economy, thereby future, the Bank may be able to augment the accentuating their fluctuations instead of efficacy of its other means of absorbing funds moderating them. It would have been wiser by the sale of these bonds, and by keeping the to accumulate reserves in periods of prosamounts derived therefrom in reserve for the perity and spend them during depression. In purpose of reinvesting them and putting the this way the State would have helped to allecorresponding media of payment back into viate the unemployment which occurs in circulation when it deems such a proceeding times of crisis. When the economic situation advisable. improves industry can absorb by itself the Reduction of cyclical fluctuations.—In greater part of available labour. If State short, the absorption of media of payment or action were to take this direction the periodic purchasing power during the upward phase crises could be surmounted without such seriby means of the placing of paper by the Cen-ous effects on the economic life of the countral Bank, would militate against the expan- try". sion of imports, industry, and other local ac- There is, therefore, a wide field of action tivities, and the gold and foreign exchange for monetary policy during the trade cycle which would otherwise be devoted to payment and valuable experience is already being of imports would then accumulate as mone- gained therein. We have thought it desirable tary reserves. When recession sets in, that to examine it and record the foregoing compurchasing power would be again put into ments, in which we have sought to avoid all circulation by the redemption of the paper at complexities of a technical nature which maturity and its withdrawal from the market might prevent a clear understanding and disby the Central Bank. Internal trade would cussion of these problems which are of such decline less acutely, and so would imports, far-reaching national importance. In the apsince the exchange which had been kept in plication of this policy the greatest caution reserve would help to pay for them. There- should be exercised, and it should never be fore, the absorption of media of payment, forgotten that its aim is not to oppose the and their subsequent return to the market, natural development of economic forces but would reduce the extent of the cyclical fluc- rather to moderate the cyclical momentum tuations and at the same time preserve the and thus lessen unfavorable social and ecobanks from the dangers of credit expansion. nomic reactions. The full development of the market for 9 Year 1937, Vol. 1, page 41. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1088 FEDERAL RESERVE BULLETIN DECEMBER 1939 BOND AND OTHER SECURITY OPERATIONS with the prudence which circumstances demanded. It was necessary to recommend re- Absorption of government securities in peatedly the postponement or suspension of 1938.—While 1936 was characterized by a various proposed issues. To give an idea of wave of optimism, and 1937 by the issue of the magnitude of these projected issues it the considerable volume of bonds that satuwill suffice to say that, excluding national serated the market, 1938 was a year of concurities, at the end of 1938 bond issues awaitsolidation on the Stock Exchange. As shown ing authorization to be put on the market inin the following table, the net volume of Govvolved the considerable sum of 500,000,000 ernment securities placed during the year pesos. amounted to only 135,000,000 pesos as against The Securities Commission.—In such cir- 550,000,000 and 350,000,000 respectively in cumstances the Securities Commission was the two preceding years. obliged to participate actively in the work of regulation. As stated in the report for 1937, Securities Securities Net it was instituted for the purpose of coordinat- Year placed withdrawn absorption ing the various market factors in order to put an end to congestion caused by the exces- (Inmillions of pe505) 1936 500.0 150.0 350.0 sive volume of bonds, and to establish condi- 1937 700.0 150.0 550.0 tions conducive to the greater stability of the 1938 250.0 115.0 135.0 Stock Market. Events have confirmed the necessity of creating this body. The serious events of 1937, which were The Commission has no compulsive powers. fuHy dealt with in our previous report, made Its function is to study all projected issues it imperative to proceed with great caution submitted to it, either directly or through in this matter, restricting issues to what the Ministry of Finance, and make whatever was absolutely indispensable so as to guard recommendations it considers advisable in against the dangers of another congestion accordance with the state of the market. For of the market. In this way it was possible this purpose it must have a,t its command the to keep quotations at a fairly steady level, fullest information regarding the financial pothe only two important fluctuations which ocsition and plans of the issuer. The Commiscurred during the year being fortunately of sion therefore takes no decisions, it merely very brief duration, as will be explained berecommends. In this way it has advised the low. postponement or suspension of such pro- It is easy to imagine the disastrous effects, jected issues as could not be placed because both on the market and on the interests of of the limited absorptive capacity of the those who invest their savings in bonds, market, and it has asked the banks to abstain which would have followed a failure to act from advancing money on bonds issued in spite of the adverse report of the Commis- WEIGHTED AVERAGE MONTHLY SPOT QUOTATIONS OF sion. Consequently the power of the Com- THE PRINCIPAL NATIONAL BOND ISSUES ON THE BUENOS AIRES STOCK EXCHANGE mission lies essentially in the moral weight which its recommendations carry in the mar- Credito Argentino Interno Foreign ket and with issuers. And that moral weight Debt can only exist if those recommendations are Year 1938 Repa- % 4% triation inspired solely by the public interest and an 1934 1935 1936 1936 Loan 4% unwavering sense of fairness. (In pesos excluding coupon) Program of issues for 1938.—By nature January 100.65 93.14 92.38 92.43 84.37 84.44 of its duties, the Securities Commission has February 99.66 91.65 91.27 91.22 84.19 84.02 March 99.95 91.13 90.59 90.85 83.55 83.48 kept in close touch with the National Ministry April 100. 33 92.20 91.78 91.76 83.75 83.62 of Finance. At the suggestion of the latter, May 100. 53 92.44 91.91 91.80 83.64 83.56 June 100. 63 92.71 91.93 92.07 83.66 83.75 a study was made in May last on the basis of July 100.88 92.97 92.44 92.33 83.71 83.72 August 100. 50 93.45 92.48 92.51 83.74 83.58 which the absorptive capacity of the market S O e c p to te b m er ber 1 9 00 9 . . 3 0 7 1 9 9 1 2 . . 0 0 4 7 9 9 0 1 . .3 4 4 8 9 9 0 1. . 2 7 6 3 8 8 1 1 . . 7 9 2 0 8 8 1 1 . . 9 9 8 3 for the remainder of the year was estimated November 100.17 92.70 92.12 92.13 82.76 82.86 at 150,000,000 pesos. This figure, together December 100. 23 92.71 92.14 92.26 83.06 83.01 with the information furnished by the prov- Average forjyear. 100.17 92.37 91.60 91.85 83.31 83.20 inces and municipalities, was used as a basis at the meeting called that same month by the 1 Including EmprSstito Patriotico 5 per cent, 1st Series. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1089 DECEMBER 1939 FEDERAL RESERVE BULLETIN Minister of Finance for the purpose of ex- tions to unjustifiably low levels. These purchanging views on the program of future chases had the desired effect of allowing the issues. The meeting was attended by the Stock Exchange speedily to regain its former members of the Securities Commission and confidence. also by representatives of the Banco de la In addition to sales on the Stock Exchange, Nacion Argentina, of the Banco de la Provin- the Central Bank, as in former years, placed cia de Buenos Aires, and of local financial bonds for account of the Government to the houses. value of 32,000,000 pesos, outside the Stock On that occasion the suggested figure of Exchange with the Pension Boards and va- 150,000,000 pesos was accepted as a conserva- rious other Government departments. tive estimate for the absorption of govern- Placing of other government securities.— ment securities by the Stock Exchange and Mortgage Bonds placed during the year it was considered advisable to distribute it as amounted to 54,000,000 pesos but as the refollows: National Government issues, 60,- demptions simultaneously effected reached 000,000 pesos; Banco Hipotecario National, 53,700,000 pesos, the net volume of these 50,000,000 pesos, and provincial and munici- bonds placed on the market was insignificant. pal issues, 40,000,000 pesos. These figures This allowed an increase in the sum originally were fixed subject to further revision if mar- allotted to the provinces and municipalities ket conditions made it necessary. from 40,000,000 to 46,000,000 pesos and also Placing of National Bonds.—The placing a slight increase in market sales of national of National Bonds on the market, effected bonds. through the Bank in its capacity as Financial In the total placings for the year there Agent of the National Government, was car- must also be included approximately 40,000,ried out gradually up to the figure mentioned 000 pesos, which is the estimated volume of above. Province of Buenos Aires bonds sold.10 The sales of bonds effected on the market Operations in National Treasury Bills.— were of two categories. On the one hand there In this sphere efforts have been made during were the ordinary bond issues to finance the 1938 to establish and develop a short-term public works programme, which amounted to Treasury Bill market. The chief obstacle lay 52,000,000 pesos. On the other, bonds were in the nature of these Bills which, being made sold which had previously been bought by the out to order, could only be transferred by en- Bank to regulate the market. In respect of dorsement, which proved in practice to be a these latter operations, purchases during the serious drawback to their free circulation. year amounted to 33,000,000 pesos, while In addition, these transactions were subject sales aggregated 47,000,000 pesos, the excess to income tax and stamp duties which also of 14,000,000 pesos being accounted for by hampered the ready negotiation of the Bills. bonds purchased in 1937 and carried forward Both these hindrances were removed by the from that year. At the end of 1938 theNational Government with a view to the remaining securities awaiting liquidation speedy realization of the object referred to. as a result of these regulatory operations Bearer bills were instituted by Decree on amounted to 2,700,000 pesos. The excess February 4,1938, and they were subsequently sales added to the ordinary bond issues re- exempted from the above mentioned taxes. ferred to above give a total of 66,000,000 The Central Bank was thus able to announce pesos, which represents the total volume of the new regulations which became effective National Bonds placed on the market during for these bills as from tenders accepted on the year. April 9. The regulatory operations just mentioned The results achieved have been very satiswere effected principally on two occasions, factory taking into account the situation durfirst in February, when the depreciation of ing the year and the fact that a pew developthe peso in the free market was accompanied ment of this kind must necessarily take place by sales of securities chiefly by foreign gradually. The fundamental object pursued holders, and secondly, on the occasion of thein encouraging the establishment of a shortinternational crisis in September, when the term bill market was to induce the financial Central Bank had to intervene very actively houses and the investing public in general to on the Stock Exchange in order to prevent the 10 Apart from this, Province of Buenos Aires Mortgage Bonds momentary confusion from depressing quota- and company issues were also offered on the market to the value of 20,000,000 pesos. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1090 FEDERAL RESERVE BULLETIN DECEMBER 1939 place their funds temporarily in a class of 85,000,000 pesos. Herein lies one of the most security carrying the most absolute guaran- significant results achieved so far by the tee. The country lacked this field of invest- creation of a short-term bill market. ment embodying the characteristics of early Although it is true that from the point of maturity and immediate realization, in which view of the National Treasury there is no investors would be assured that the security difference between funds received from the they had purchased could be realized at anybanks and those subscribed by the public, moment. For this it was necessary that the from the monetary standpoint the two situamarket should be as extensive as possible, tions are entirely different, as shown in the both in regard to the number and the financial second chapter of this report. Subscriptions capacity of the investors, so that both buyers by the banks involve the creation of fresh and sellers could always find the means of media of payment, whereas public subscripsatisfying their requirements. All this has tions merely entail a transfer to the National been achieved by the cooperation of the brok- Treasury of media of payment already existing firms which have taken an active share ent. It is unnecessary to repeat the remarks not only in tendering but also in negotiating made in the above mentioned chapter regardbills in the open market. The result of the ing the effects of each of these methods of tenders throughout the year can be followed financing expenditure. It is therefore easy in the table given below: to understand the Central Bank's concern in furthering the development of this tendency, PLACING OF TREASURY BILLS FOR ACCOUNT OF THE without in any way prejudicing the interest NATIONAL GOVERNMENT IN 1938 of the banks which have always been able to find a suitable field for the investment of Average rate of interest on their surplus cash reserves, either in Certifi- Treasury Bills amount allotted maturing at approximately: Bills in cates of Participation in Consolidated Bonds Date of circulaissue tion i or in Gold and Foreign Exchange Holding Of- Sub- Al- 30 90 180 360 Certificates. Further, the development of a fered scribed lotted days days days days days short-term market will open up for the banks (Thou- a profitable outlet for their temporary cash (In thousands of pesos) (Per cent) sands ofpesos) balances which it will be possible to invest J F a e n b . . 1 1 0 0 2 2 0 5 , , 0 0 0 0 0 0 6 7 , ,0 9 5 0 0 0 3 6 , , 0 9 5 0 0 0 2 2 . . 0 0 2 6 2 2 . . 2 2 5 5 1 12 4 3 5 , , 8 1 0 0 0 0 in readily realizable short-term bills, as hap- Mar. 10 20,000 9,900 3,900 2.25 117,050 pens" in important financial centers where Apr. 9 20,000 4,600 4,600 2.39 2.50 109,100 May 10 15,000 3,350 2,350 2.13 2.25 2.75 123,950 treasury bills are regarded as the most typical Ju " n e 1 2 0 4 2 1 5 0 , , 0 0 0 0 0 0 3 1 3 6 , , 7 5 0 5 0 0 2 13 5 , , 6 2 7 2 5 5 2 2 . . 1 1 3 3 2 2 . . 3 3 3 3 2 2 . . 3 3 3 7 2 2 . . 7 7 5 5 2.88 1 1 3 4 2 1 , , 0 3 5 2 0 5 short-term market security. " 25 20,000 25,375 13, 825 2.10 2.33 2.38 2.75 135,025 July 8 18,000 14,925 7,100 2.10 2.50 2.75 132,125 The 85,000,000 pesos of bills taken up by Au " g . 1 2 0 6 2 1 0 5 , , 0 0 0 0 0 0 2 1 2 9 , , 4 75 0 0 0 1 1 7 8 , , 8 60 0 0 0 2 2 . . 1 1 5 2 '2 2 . . 1 2 6 8 2 2 . .4 4 0 2 2 2 . . 7 7 5 5 3.00 1 1 3 4 8 2 , , 2 2 0 0 0 0 other institutions and by the public in 1938, " 25 25,000 29,400 27, 300 2.11 2.31 2.49 2.75 3.00 143,800 include 12,000,000 pesos subscribed by for- Sept. 10 15,000 24,325 23, 275 2.15 2.35 2.49 2.75 3.00 150, 925 " 24 25,000 25,300 23,300 2.13 2.35 2.50 2.75 136, 250 eign holders through exchange swap opera- Oc " t . 1 2 0 5 2 2 5 5 , , 0 0 0 0 0 0 2 27 7 , , 0 4 5 2 0 5 2 2 5 5 , , 2 7 0 2 0 5 2 2. . 0 1 6 2 2 2. . 3 3 2 5 2 2 . . 5 5 0 0 2 2 . . 7 7 5 5 3.00 1 14 4 3 2 , , 1 9 2 2 5 5 tions. A very restrictive policy has been Nov. 10 17,500 18,300 16,800 2.08 2.31 2.50 3.00 149,025 followed in this respect as it has not been " 25 22,500 19,350 15,850 2.08 2.35 2.50 2." 75 3.00 145, 725 Dec. 10 20,000 22,500 19,750 2.10 2.35 2.50 2.93 148, 950 considered advisable to be burdened with a « 24 25,000 22,055 16, 555 2.13 2.35 2.50 "2~75 3.00 144,755 large volume of short-term commitments abroad. For this reason tenders for short- 1 Including Treasury bills placed without tender and Treasury bills of Yacimientos Petroliferos Fiscales. term bills have been refused and practically No change has occurred during the year in all the foreign bids accepted have been for the volume of bills in circulation but their maturities at 9 months or a year. A judidistribution has been modified. In effect, of cious contact has thus been established with the 150,000,000 pesos of bills in circulation foreign investors but within extremely pruat the end of 1937, 91,000,000 had been placed dent limits. with the banks and 59,000,000 with other The total of 145,000,000 pesos of bills outfinancial institutions and members of the standing on December 31st last, also included public. Whereas, out of the 145,000,000 11,000,000 of the Yacimientos Petroliferos pesos in circulation at the close of 1938, theFiscales and 64,000,000 used for the repatriaamount held by the banks had declined to tion of foreign indebtedness. The balance, 60,000,000 pesos, that held by other in- 70,000,000 pesos, corresponds therefore to stitutions and by the public had risen to bills for Treasury financing. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1939 FEDERAL RESERVE BULLETIN 1091 Participation in consolidated treasury bond OTHER ACTIVITIES OF THE BANK and gold and foreign exchange holding cer- Exchange operations.—The rise of sterling tificates.—During the year 1938 the banks and the price level. The deficit in the balance have had to resort to the realization of a part of payments in both the official and the free of their holdings of Participation in the Con-exchange markets forced the Central Bank solidated Bonds and Gold and Foreign Ex- to become an active seller of exchange in order to meet the demand which exceeded supply. During the latter part of January PLACING OF CERTIFICATES OF PARTICIPATION IN CONSOLIDATED BONDS IN 1938 and the beginning of February this situation caused the first depreciation of the peso in Certificates in Rate of interest on the free market, when the sterling rate rose Nominal value circulation amount allotted 2 from 16.99 pesos on January 28 to 19.05 pesos Date of issue of on February 4. The continuance of this state Certifi- Of- Sub- Al- Nomi- Market Mini-Maxi- Aver- of affairs brought about a further depreciacates fered scribed lotted i nal value mum mum age value tion in November, when the pound rose from 18.96 to 20.62. This decline coincided with (In thousands of pesos) (%) the National Government's decision to modify Jan. 17 70,000 77,000 70,000 301,850 300,502 1.674 2.009 1.906 Feb. 2 49, 700 42,900 39,800 291,950 290,640 1.739 2.023 1.931 the official market selling rate raising it from M " a r. 1 2 7 5 27 0 , , 7 0 5 0 0 0 3 53 9 , , 4 6 5 5 0 0 4 2 0 7 , , 6 7 5 5 0 0 2 2 8 8 2 2 , , 6 8 0 0 0 0 2 28 8 1 1 , , 3 5 3 2 6 5 1 1 . . 7 7 3 2 9 2 2 1 . .9 0 9 2 6 3 1 1 . . 7 9 8 1 9 3 16 to 17 pesos, in view of the exchange situa- Ap « r . 17 2 1 1 2 2 0 , , 7 0 5 0 0 0 11 8 0 , , 3 0 5 0 0 0 11 8 5 , , 3 0 5 0 0 0 3 30 0 1 5 , , 9 5 5 5 0 0 3 3 0 0 4 0 , , 4 0 3 4 5 8 2 1 . .9 0 5 1 7 8 2 1 . .9 0 9 1 6 8 2 1. . 9 0 9 1 2 8 tion and of the measures adopted in regard " 13 70,000 48,250 36, 500 268,050 266,673 1.992 2.145 2.036 to grain prices. May 2 50,000 39,000 13,000 241, 250 239, 995 1.996 2.113 2.042 a 17 50,000 53,000 90,000 290,600 289,043 2.035 2.152 2.092 Last year we explained at length how the June 2 40,000 24,300 30,600 293,450 291, 858 2.113 2.191 2.183 " 10 21,000 312, 450 310, 761 2.186 2.186 2.186 deficit in the balance of payments began, and " " 2 1 4 7 60,000 34,000 6 2 0 1 , , 0 7 0 5 0 0 3 3 1 3 3 4 , , 2 2 0 0 0 0 3 33 1 2 1 , , 4 3 7 4 1 3 2 2 . . 0 21 3 8 5 2 2 . . 2 21 3 8 0 2 2. . 2 2 1 2 8 6 in this report reference has been made in July 2 50,000 29,450 43,800 316, 650 314,902 2.176 2.295 2.287 other chapters to the various factors which " 16 40,000 28,050 28,050 308,200 306,479 2.168 2.284 2.247 Aug. 2 20,000 10,700 10, 700 305,900 304,182 2.191 2.309 2.282 account for its continuance during the year. " 16 90,000 57,000 57,000 272,900 271, 325 2.245 2.323 2.290 It only remains now to deplore that such ad- " 18 4,000 276,900 275, 302 2.284 2.284 2.284 Sept 2 60,000 37, 700 37, 700 263,000 261, 455 2.255 2.374 2.360 verse circumstances have rendered it impos- " 3 36, 350 299,350 297,481 2.356 2.356 2.356 " 17 60,000 48,000 90, 300 328, 900 326, 683 2.374 2.374 2.374 sible to maintain a greater degree of stability " " 2 2 4 3 2 6 4 , , 9 21 9 0 0 3 3 6 5 0 3 , ,1 1 1 0 0 0 3 3 5 5 0 7 , , 7 6 3 7 0 4 2 2 . . 3 3 7 8 6 8 2 2 . . 3 3 8 7 8 6 2 2 . . 3 3 8 7 8 6 in free market rates. It must be pointed out, Oct. 1 40,000 23,000 70, 700 366,000 363, 391 2.361 2.361 2.361 however, that notwithstanding its regrettable No u v . 17 2 2 1 5 0 ,0 ,0 0 0 0 0 2 1 0 0 , , 0 9 0 0 0 0 2 1 5 0 , , 0 0 0 0 0 0 3 3 6 5 5 4 , , 7 9 5 5 0 0 3 3 6 5 3 2 , , 1 3 9 3 7 0 2 2 . . 3 3 0 0 9 9 2 2 . . 3 3 8 8 7 7 2 2 . .3 3 6 7 6 3 repercussions abroad, the depreciation of the De a c . 17 2 4 1 0 0 , , 0 0 0 0 0 0 2 1 4 3 , , 8 5 0 0 0 0 44 8 , , 5 8 0 0 0 0 3 3 4 1 6 6 , , 8 7 5 5 0 0 3 3 4 1 4 4 , , 2 4 1 9 2 3 2 2 . . 3 3 4 6 8 0 2 2 . . 3 3 7 8 7 0 2 2 . . 3 37 7 1 5 peso in the free market, as anticipated in our « 17 50,000 33,500 33, 500 302, 350 300,082 2.360 2.380 2.377 1937 report, has had no great effect on the internal price level because of the type of 1 Including Certificates allotted without tender. the imported goods paid for through that 2 For a term of 90 days approximately. market, and because they constitute less than change Holding Certificates, to replenish their 20 per cent of the total imports. cash reserves in view of the drain caused by the deficit in the balance of payments and the VALUE OF GOLD AND GENERAL PRICE LEVEL D¥ ARGENTINA increase in advances. In this way a substan- (Indices, basis 1926 = 100) tial decline in cash reserves has been avoided, Logarithmic scale I but, on the other hand, placings of these Cer- - 300 tificates have undergone an appreciable reduction. Whereas in December 1937 the total value of Certificates of both classes placed by the Central Bank with the other Banks VALUE OF GOLD CURRENCIES amounted to 545,000,000 pesos, at the same date in 1938 it had fallen to 312,000,000 pesos. The usual table illustrative of the course of operations in Certificates of Participation in Consolidated Treasury Bonds is given above. In the corresponding column the upward GENERAL WHOLESALE PRICE LEVEL tendency of the interest rate, in harmony with I 1 ,1 1 1 I 1 1 11 the changed conditions of the market will be 1926 27 28 29 30 31 32 33 34 35 36 37 1938 noted. Note: The value of gold currencies and that of the pound sterling from November 1933 onwards has been calculated at the official market selling rate. 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1092 FEDERAL RESERVE BULLETIN DECEMBER 1939 On the contrary, the appreciation of the to the bills discounted in Zurich and Amsterpound sterling in the official market is apt dam in May for a nominal value of 40,000,000 to produce a rise in the internal price level. Swiss francs and 12,500,000 florins (guil- Nevertheless, this has not occurred during ders) respectively. The result of these oper- 1938 due to the fact that the fall in interna- ations is given below: tional prices has been greater than the rise in the pound. In effect, in December 1937 the g st e o n o e d r a a l t w 1 h 1 o 1 l .7 es a ( l b e a p si r s ic : e 1 9 in 2 d 6 e = x f 1 o 0 r 0 ) A , r w g h en er ti e n a a s Ne fo t re p i r g l o o n c a e n c e u d i r s n r e o n f c y the co R i n n a v t t e o e r s o £ io f n Y in ie l £ d s i e n A l l t v i h n e e g r a r f g r a e e t e e Yield in in December 1938 it had fallen to 103.0. market Wholesale prices have therefore almost returned to their pre-crisis level, a very signifi- Swiss francs 39,080,000 21.72 1, 799,172 18.94 34,078,882 Florins 12, 315, 752 8.98 1, 371,080 18.97 26,009,905 cant fact as it proves that despite the con- Dollars 23,143,750 4.76 4,862, 847 18.97 92, 229, 360 siderable currency depreciation which has taken place during the last decade, prices Bank inspections.—Inspections. The Bank stand today almost at the same level as at the Inspection Department has continued to perbeginning of the period. This is easily ex- form its duties according to plan. In the plained by the great fall in international execution of a program approved in 1938 prices, which in this country has been offset nearly all the important banks and not a few by the simultaneous rise in the value of gold in of the smaller ones have already been interms of Argentine currency, as can be clearly spected. To date 82 inspections have been seen in the accompanying chart (p. 1091). carried out comprising banks which hold 92 Nevertheless it is obvious that, given an per cent of the total deposits. unvarying level of international prices, any In performing this task the Central Bank depreciation in the value of the currency must has acted in the same spirit that has been necessarily affect the internal price level, as explained in previous reports, endeavoring has been repeatedly proved by past ex- to cooperate with the banks in finding a soluperience. tion to any difficulties with which they may Gold exports. Due to the situation referred be confronted. In the case of some instituto above, it was found necessary from July tions whose balance sheets showed losses or onwards to export an appreciable part of the a considerable volume of frozen assets, it has gold imported in 1937 by order of the Na- been necessary to consider methods of mobitional Government. Of this gold, which was lizing those funds and improving the state of valued in the Exchange Fund at 202,000,000 the balance sheet, either by making use of pesos, at the rate of 140.4 shillings per ounce part of the reserves or of the paid up capital, and 15 pesos to the £, only 91,000,000 pesos or by obtaining assistance from the Instituto remained. The cost of shipping the gold Movilizador de Inversiones Bancarias. These worked out at 0.337 per cent of its value, measures have met with every success and including freight, insurance, and other ex- have not given rise to any uneasiness in the penses. At the same time the Central Bank, market. for the reasons mentioned above, was obliged In addition, some special inspections have to dispose of a considerable part of the gold been made in regard to exchange operations. which it held abroad also for account of the The results have, generally speaking, been Exchange Fund. The net amount of gold thus very satisfactory, but it has been noticed that sold reached a total equivalent to £16,231,929. the book-keeping systems used for these oper- 11s. 5d., or 243,000,000 pesos at the rate given ations sometimes lack clarity. This led to a above. These operations were effected chiefly study of the possibility of working out a simin the London Market. In addition, when the ple uniform book-keeping system which could National Government floated the $25,000,000 be used by banking institutions who might loan in New York, gold to the value of ap- wish to simplify their work and facilitate the proximately $6,000,000, or 19,000,000 pesos declarations which they have to make to the at the same exchange rate, was deposited in Central Bank according to the regulations that market. issued by the Exchange Control Office. Foreign Loans. The Bank took part in the Minimum cash holdings. Compliance with exchange operations originated by the New the regulations regarding minimum cash York loan, as well as in those corresponding holdings has continued to be satisfactory. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1093 DECEMBER 1939 FEDERAL RESERVE BULLETIN The holdings of the banks as a whole remain banking and non-banking, according to the appreciably above the minimum required by nature of their assets and liabilities and to law, although excess holdings, due to reasons the ratio of their capital to the funds received mentioned elsewhere, have declined during from members. The former are required to the year. Deficits have also been compara- comply with the Banking Law, while nontively small as is shown in the table which banking cooperatives must take all measures follows. necessary to prevent the public from confus- These deficits, as in the previous year, have ing them with institutions subject to the reguoccurred in institutions of minor importance lations and control of the Banking Law. To which in most cases are undergoing reorgani- ensure that such measures are taken, the Cenzation. Exercising the powers vested in it tral Bank is empowered to ask them for inunder the Banking Law, the Central Bank formation and to inspect them. This Decree has refused to authorize the payment of divihas as its main purpose to ensure the untramdends by establishments which have not kept melled development of cooperatives which, their holdings regularly up to the legal minialthough receiving funds from their members mum. The same step was taken in the case even if only in limited amounts, devote themof institutions in which inspection had disselves primarily to activities which are not closed the existence of losses which it was of a banking character. desirable to write off by applying profits to Subsidiary currency.—To date no change that purpose. has been made in the subsidiary currency issue which remains at the same total of 212,- LIABILITIES, CASH HOLDINGS AND SURPLUS OVER 000,000 pesos at which it stood on May 31, LEGAL MINIMUM DURING 1938 1935, when the Central Bank was established. [Monthly average of daily balances, in thousands of pesos] At that time the Central Bank held 11,000,000 pesos in its own vaults, the remaining 201,- Liabilities Cash holdings 000,000 being in the hands of the banks and the pubjic. Since then the requirements of Difference with re- Months spect to legal circulation have constantly increased, and the Sight Term Total Amount c P e e n r t minimum Central Bank's holdings of subsidiary currency have diminished to such an extent that Sur- Defi- Net plus cit surplus on December 31 last they amounted to only 2,200,000 pesos. This circumstance has made J F a e n b.... 1 1 , , 8 84 3 3 2 , , 3 8 7 8 4 6 22 2 ,, , 4 4 5 3 3 6 ;, , , 9 7 7 3 7 5 4 4 , , 2 228 8 86 0 6, , , 8 1 6 0 3 9 7 7 5 8 2 1 , ,6 7 2 33 5 1 1 7 8 . . 6 3 2 29 6 2 3 , , 7 3 4 1 0 7 6 5 0 7 3 8 2 2 9 6 2 2 , , 1 7 6 6 2 8it imperative to restrict the exchange of sub- March.1,853,087 2i,; 44"8-, 510 4,301, 17.9 276,488 800 275, 688 sidiary currency for Central Bank notes and April. _1, 819, 648 2!,, 449, 520 4! 168 771,832 18.1 285, 772 021 284, 751 May.._ 1, 778, 740 2, U5,483 A,,2 2224,4', 223 767\! 493 18.2 288, 641 , 366 287, 275to confine these activities to the renewal and J Ju u n ly e. . - .. 1 1, , 7 7 5 2 8 4 , , 2 0 9 4 1 6 2 2 2 "" , , , !, 4 4 4 4 2 2 , , 9 5 3 3 5 7 4 i, , 2 1 00 6 , 6, 8 9 2 8 8 1 7 7 0 0 2 4 , , 6 3 4 3 6 1 1 16 6 . . 9 7 2 2 2 3 6 4 , , 3 7 4 0 6 5 0 9 8 7 2 6 2 2 2 3 5 3 , , 6 3 2 7 3 0exchange of subsidiary currency of the va- Aug.... 1, 701,487 2!,, 439,173 4!140, 660 7425,,'710 17.9 277,009 1655 275, 354rious denominations. Sept... 1, 728, 572 2!,,4 42233^, 729 4152, 301 7'48, 823 18.0 279, 963 588 278, 375 Oct 1,719,484 22,, 4"1'-2, 745 4!132, 229 719, 25817.4 252, 875 729 251, 146 The Law allows for an increase in the issue Nov. _. 1, 715, 912 "2!,, 399, 616 4'115, 528 713, 67017.2 248, 874 706 247,168 Dec-.. 1, 729, 270 2!,, 384,110 4!, 113, 380711,663 17.3 245, 689 426 244, 263 of this class of currency by the National Gov- Ave— 1, 767,066 2,431, 589 4,198, 655 '40, 402 17.6 264,3731,211263,162 ernment at the request of the Central Bank, always provided that the total does not exceed 20 pesos per inhabitant. The Bank has not Statistical summary. The regular publication of the Statistical summary of the state considered it desirable to make such a request of the banks called for by the Banking Law without first ascertaining whether the greater was commenced in February last in accord- demand for this currency, especially in 1938, ance with forms drawn up by the Central is due to temporary factors or to a natural Bank. growth in circulation requirements. The ex- Cooperative societies. A careful study of perience of the present moment may well the working of cooperative societies led to the show definitely which of these two alternative conclusion that, generally speaking, the funds causes is responsible. which they receive cannot be considered as The want of one and two centavo coins has bank deposits. Once the Central Bank had again been felt during 1938. The continual studied this matter, the Executive Power is- applications made by Government departsued Decree No. 15,130 on October 21 last, ments, as well as the frequent requests from which divides cooperatives into two classes, industrial and commercial concerns which re- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1094 FEDERAL RESERVE BULLETIN DECEMBER 1939 quire such coins for their payments, cannot During 1938 the Bank granted the adbe satisfactorily met because of the very small vances requested by the Government, which number of these coins in existence. fluctuated between 10,000,000 and 70,000,000 Temporary advances to National Govern- pesos. The largest sum outstanding at any ment.—By Art. 44 of Law 12,155 the Bankone moment was 68,000,000 pesos. is authorized to make advances to the Na- These advances were used by the National tional Government for the purpose of cover- Government chiefly at the beginning and end ing temporary insufficiency in revenue collec- of each month. They decreased appreciably tions, up to a limit of 10 per cent of the aver-in the middle of each month and remained age cash revenue collected by the Government completely unused for periods of from 8 to in the three preceding years. 22 days in January, February, May, July, The average for the years 1935-37 was August, and November. In June no advances 904,000,000 pesos, the maximum advance al- at all were requested. lowable this year therefore amounting to On December 31 the balance outstanding 90,000,000 pesos. of this account was 50,000,000 pesos. BALANCE SHEET OF THE CENTRAL BANK OF THE ARGENTINE REPUBLIC AS OF DECEMBER 31, 1938 AND 1937 [In thousands of pesos] Assets De 1 c 9 . 38 31, De 1 c 9 . 3 3 7 1, Liabilities De 1 c 9 . 38 31, De 1 c 9 . 37 31, Gold at home 1, 224, 418 1, 224, 418 Notes in circulation 1,117,957 1,149,751 Gold at home, extension of Exchange Fund- 129,109 B ank deposits 320, 584 355, 394 Gold abroad and foreign exchange 71, 351 68,196 National Government deposits 109, 706 125,019 Foreign exchange bought forward 18, 384 Other deposits 914 4,927 Subsidiary currency 2,198 2,477 Foreign exchange sold forward 18, 384 Shareholding banks, shares subscription Capital 20,000 20,000 accounts 15 General reserve fund 4,558 2,586 Non-interest bearing Government bonds.__ 118,884 118, 884 Special reserve for contingencies 1,500 Consolidated Treasury bonds 396, 909 397, 970 Contingency and enlargement of premises 1,500 National securities, Article 34, Law 12, 155.. 28, 939 23, 701 reserve 600 Bank premises 0) 970 Certificates of participation in Consolidated 2,500 Temporary advances to National Govern- Treasury bonds 310, 500 ment, Art. 44, Law 12, 155 50, 255 17,092 Bank premises amortization account 302, 350 970 Other assets 5,603 2,510 Profit and loss account 5,184 7,386 Other liabilities 13, 304 6,707 Total assets.. 1, 916, 941 1, 985,340 Total liabilities. 1,916,941 1, 985,340 1 Entered at the nominal figure of 1 peso. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FINANCIAL, INDUSTRIAL, AND COMMERCIAL STATISTICS UNITED STATES 1095 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1096 FEDERAL RESERVE BULLETIN DECEMBER 1939 MEMBER BANK RESERVES, RESERVE BANK CREDIT, AND RELATED ITEMS [In millions of dollars] Reserve bank credit outstanding Member bank Treas- Treasury Other reserve balances Date co B d u i i n l s l t - s ed bo B u il g ls ht s m U G e e c r . e o u n n v S r - t - i . - R c O b r e e a s t d h e n i r e k t v r i e Total s G to o c ld k s r t o e c u i a n n u u r n y g r c t d - - y - M in c t u i o o c l n a n ir - e - y T h c i u r o n a e r g l s y a d h s s - - d R F b e e w e a p d s n i o e e t k s r h r v i s a t e l s b p m N e o r e o s m d i n t e - s - - R c e F o e a s u e r c e a d n - r l - t v s e Total m E ( x a e c t s e e ti s d - s ) ties End of month figures: 1938—Oct. 31 7 2,564 14 2,586 14,065 2,751 6,700 2,770 535 424 260 8,713 3,227 Nov. 30 7 2,564 13 2,584 14, 312 2,773 6,787 2,689 484 574 259 8,876 3,383 Dec. 31 4 2,564 33 2,601 14, 512 2,798 6,856 2,706 923 441 260 8,724 3,205 1939—Jan. 31 5 2,564 28 2,607 14, 682 2,816 6,653 2,776 747 458 255 9,215 3,644 Feb. 28 4 2,564 30 2,598 14,874 2,824 6,731 2,740 1,148 488 254 8,936 3,387 Mar. 31__._ 4 2,564 18 2,587 15, 258 2,839 6,817 2,691 1,229 533 257 9,157 3,559 Apr. 30 3 2,571 20 2,595 15, 791 2,849 6,905 2,699 931 545 255 9,900 4,098 May 31 4 2,564 4 2,573 15,957 2,862 6,967 2,636 920 586 253 10,029 4,218 June 30 5 2,551 23 2,579 16,110 2,881 7,047 2,563 944 739 258 10,018 4,140 July 31 5 2,488 -8 2,486 16, 238 2,895 7,049 2,360 752 693 257 10, 507 4,553 Aug. 31.... 5 2,426 14 2,446 16, 646 2,907 7,171 2,325 708 622 255 10, 918 4,758 Sept. 30 6 2,804 68 2,879 16,932 2,919 7,293 2,244 545 753 240 11,655 5,352 Oct. 31 6 2,736 59 2,801 17,091 2,932 7,342 2,254 286 728 241 11,973 5,553 Wednesday figures: 1938—Dec. 7 6 2,564 20 2,591 14, 367 2 775 6,844 2,681 407 576 258 8,966 3,442 Dec. 14 7 2,564 29 2,600 14,380 2,784 6,858 2,651 413 551 258 9,034 3,476 Dec. 21 8 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 Aug. 23.... 5 1 2,423 13 2,441 16, 501 2,903 7,098 2,334 724 604 256 10,829 4,741 Aug. 30 6 1 2,426 15 2,448 16, 638 2,905 7,141 2,327 709 608 255 10,951 4,799 Sept. 6 6 1 2,594 42 2,643 16, 726 2,908 7,261 2,264 676 688 247 11,141 4,969 Sept. 13 7 1 2,824 42 2,873 16,808 2,911 7,235 2,227 615 755 234 11, 526 5,271 Sept. 20— 6 1 2,826 50 2,883 16, 902 2,915 7,236 2,272 619 781 242 11, 549 5,275 Sept. 27 6 1 2,804 36 2,846 16, 925 2,914 7,238 2,260 552 771 242 11, 621 5,332 Oct. 4 7 1 2,785 45 2,837 16, 958 2,920 7,309 2,250 469 776 239 11,672 5,359 Oct. 11_____ 7 1 2,765 38 2,810 16,973 2,924 7,346 2,238 404 742 238 11, 739 5,399 Oct. 18 6 1 2,748 63 2,817 16, 997 2,927 7,330 2,216 349 698 241 11,907 5,509 Oct. 25 6 2,736 30 2,771 17,039 2,929 7,302 2,230 326 692 240 11,950 5, 534 Nov. 1 . 6 2,721 38 2,765 17,099 2,932 7,352 2,250 349 790 241 11,814 5,376 Nov. 8 6 2,687 28 2,721 17,132 2,935 7,409 2,263 348 779 241 11, 749 5, 354 Nov. 15.. . 6 2,649 60 2,715 17, 235 2,939 7,384 2,341 564 772 241 11, 587 5,166 * Includes industrial advances. NOTE.—For description of figures in this table and discussion of their significance, see BULLETIN for July 1935, pp. 419-429. Reprints of article together with all available back figures, may be obtained upon request from Division of Research and Statistics. Back figures are also shown in Annual Report for 1937 (tables 3 and 4) and for excess reserves in BULLETIN for August 1935, pp. 499-500. Averages of daily figures for recent months and years are shown in the table on p. 1053. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1097 DECEMBER 1939 FEDERAL RESERVE BULLETIN PRINCIPAL ASSETS AND LIABILITIES OF ALL FEDERAL RESERVE BANKS [In thousands of dollars] Wednesday figures End of month 1939 1939 1938 Nov. 15 Nov. 8 Nov. 1 Oct. 25 Oct. 18 Oct. 11 Oct. 4 Oct. Sept. Oct. ASSETS Gold certificates on hand and due from U. S. Treasury 14,866, 65414,858,21014,839, 206 14, 804, 21014, 769, 206 14, 725, 715 14,696, 21714, 829, 206 14,671, 72011, 262, 700 Redemption fund—F. R. notes 10, 253 9,139 8,926 9,777 8,987 9,005 8,846 7,344 8,813 Other cash 353, 716 323, 888 344, 281 332, 383 315,194 325,153 339, 670 334, 273 367,842 Total reserves. 15,230,62315,191,23715,187,920 15,157,41715,111,36615,049, 896 15,030, 37515,177, 722 15,013,33711,639,355 Bills discounted: For member banks 3,176 3,166 2,939 2,442 2,314 3,205 3,440 2,848 2,925 7,401 For nonmember banks, etc. 3,309 3,309 3,309 3,309 3,309 3,309 3, 3,309 3,309 Total bills discounted. 6,485 6,475 6,248 5,751 5,623 6, 514 6,749 6,157 6,234 7,401 Bills bought: Payable in foreign currencies. 415 498 548 548 541 Industrial advances 11,561 11, 623 11,6 11,763 11, 787 11,803 11,841 11, 744 11, 972 15, 264 U. S. Government securities, direct and guaranteed: Bonds 1,305,442 1, 313, 942 1, 315, 942 1, 315, 942 1, 315, 942 1,315,942 1, 315,942 1, 315, 942 1, 315,942 787,327 Notes . 1,239,172 1, 247,497 1, 245, 497 1, 245, 497 1, 245, 497 1, 245, 497 1, 245, 497 1, 245, 497 1, 245,497 1,164, 565 Bills 104,705 125, 380 159, 380 174, 320 186, 820 203, 457 223,457 174, 320 242, 370 612,123 Total U. S. Government securities, direct and guaranteed 2, 649, 319 2, 686,819 2, 720, 819 2, 735, 759 2, 748, 259 2, 764, 896 2, 784,896 2, 735, 759 2, 564,015 Other Reserve bank credit 47, 950 16,104 25, 996 18, 216 50, 634 26, 241 33,207 47, 361 55,965 -1,367 Total Reserve bank credit outstanding 2,715,315 2, 721,021 2, 764, 743 2, 771, 4 2, 816, 718 2, 837, 241 2, 801,021 2,878, 528 2, 585, 854 LIABILITIES F. R. notes in actual circulation. 4,805, 254 4,817,094 4, 781,385 4, 743, 717 4, 756,457 4, 757,812 4, 732,133 4, 772,822 4, 719, 776 4,315,142 Deposits: Member bank—reserve account... 11, 587,15611, 748, 66011,813, 664 11, 950,44611,906,84711, 739,15611, 671, 66411,972, 84811,655,397 8, 713,092 U. S. Treasurer—general account.. 564,123 347,622 349,030 326,003 349,137 403, 535 469,127 286, 371 544, 548 535, 277 Foreign bank 454, 277 456, 231 470, 881 418, 898 414, 705 444, 207 466,137 415, 699 447,873 204, 063 Other deposits 317, 728 322,911 319, 449 272, 874 283, 540 297, 400 309, 403 312, 658 304,969 219, 612 Total deposits. 12,923,284 12,875,424 12,953,02412,968, 22112, 954, 229 12, 884, 298 12, 916, 33112, 987, 576 12,952, 787 9,672,044 Ratio of total reserves to deposit and F. R. note liabilities combined (per cent) 85.9 85.9 85.6 85.6 85.3 85.3 85.2 85.5 85.0 83.2 MATURITY DISTRIBUTION OF BILLS AND U. S. GOVERNMENT SECURITIES HELD BY FEDERAL RESERVE BANKS [In thousands of dollars] Total W 15 i d th a i y n s 16 d a to y s 30 31 d a to y s 60 61 d a to y s 90 m 91 o t o d n a t 6 h y s s 6 1 m t y o o e n a t r hs 2 1 y t y o e e a a r r s 2 5 y y to e e a a r r s s 5 O y v e e a r rs Bills discounted: Oct. 25 5,751 1,385 125 3,609 207 317 108 Nov. 1 6,248 1,404 515 3,578 130 576 45 Nov. 8 6,475 1,594 315 3,361 393 753 59 Nov. 15 6,485 1,486 3,546 278 189 912 74 Industrial advances: Oct. 25 _ 11, 763 1,442 343 408 1,115 1,040 2,104 2,952 2,359 Nov. 1 11,680 1,585 98 891 700 1,051 2,089 2,961 2,305 Nov. 8 11, 623 1,577 73 1,245 436 1,040 2,032 2,930 2,290 Nov. 15 . 11, 561 1,467 357 1,011 476 944 2,114 2,956 2,236 U. S. Government securities, direct and guaranteed: Oct. 25 ___ 2, 735, 759 48, 940 48,675 182, 453 161, 705 138, 783 347, 365 589, 282 1, 218, 556 Nov. 1 2, 720,819 54, 675 69, 280 35, 425 161, 705 138, 783 348,829 693, 567 1, 218, 555 Nov. 8 2, 686, 819 48, 675 76, 705 161, 705 136,783 348, 828 695, 567 1, 218, 556 Nov. 15 2,649, 319 69, 280 35,425 161, 705 136, 783 345, 254 690, 567 1, 210, 305 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1098 FEDERAL RESERVE BULLETIN DECEMBER 1939 STATEMENT OF CONDITION OF THE FEDERAL RESERVE BANKS, BY WEEKS [In thousands of dollars] Total Boston Y N o e r w k P p d h h e i l i l - a a- C la le n v d e- m Ri o c n h d - la A n t t - a Chicago L S ou t. is n M o e l a i i n p s - - K C s a a it n s y - Dallas F c S i r s a a c n n o - ASSETS Gold certificates on hand and due from U.S. Treasury: Oct. 25 14, 804, 210 853,152 7',, 124, 328731, 589 883, 761379, 274 268. 600 2, 499, 949 4i1,0 ,036 247, 764 336,862715, 654 853, 236 Nov. 1 14,839, 206 855, 2187,084, 774 752,121 918, 407 384, 272 2713,,151 2,511,503 412!,, 228 246,089 335, 532155,142 850, 766 Nov. 8 14, 858, 210 850,,114422 6\, 998, 030 788, 293 914, 681389, 310281, 370 2, 528, 284425, 732 248, 255 335,007226, 778 872,328 Nov. 15 14,866, 654 841,, 580 \6,, 971,039795, 848 928,083390, 834278,465 2, 539,001425, 209 246, 505 340, 518238,132 871, 440 Redemption fund — Federal Reserve notes: Oct. 25.... 8,926 1,116 1,345 454 536 575 348 840 327 552 415 1,450 Nov. 1 8,846 1,116 1, 345 383 536 575 348 968 840 327 552 406 1,450 Nov. 8 9,139 1,074 1,197 1,383 480 256 322 905 825 321 539 406 1,431 Nov. 15 10, 253 1,061 1,155 1,308 1,000, 1,237 294 838 816 241 517 389 1,397 Other cash: Oct. 25 344,281 29,184 90, 041 29,648 22, 248 20, 500 17, 537 46, 370 14, 361 8,927 18, 371 17, 570 29, 524 Nov. 1 339, 868 29, 691 84, 374 29, 977 22,116 22, 912 18, 420 42, 598 14, 515 8,835 19, 249 16,911 30, 270 Nov. 8 323,888 29, 680 81,613 27, 422 20,646 20, 595 18,123 43,054 13,421 9,938 18,124 16, 288 24, 984 Nov. 15__. 353, 716 30, 789 87, 524 29, 974 23, 787 25, 262 20, 808 43, 341 15, 500 19,086 17, 332 31,020 Total reserves: Oct. 25 15,157, 417 883, 452 7, 215, 714761, 691 906, 545 400, 349 2864,85 2, 547, 287425, 237257,018 355, 790233,639 884, 210 Nov. 1 15,187, 920 886,,025 7', 170, 493782, 481 941, 059 407, 759 291, 919! 2,, 555555,, 069 427, 583 255, 235515,336232,459 882, 486 Nov. 8. 15,191, 237 880)., 896 '7,, 080, 840817,098 935,807 410,161299, 815 2, 572, 243 439, 978 258, 514 3I5,3 i670243, 472 898, 743 Nov. 15 15, 230, 623 873, 430 7',\ 059, 718827,130 952, 870 417, 333 299, 567 2, 583,180 441, 525 256,039 316,102,1255, 853 903, 857 Bills discounted: Secured by U. S. Government obligations, direct and guaranteed: Oct. 25 993 313 63 138 110 10 145 60 30 4 55 Nov. 1 1,180 100 275 55 173 120 90 108 60 100 4 30 Nov. 8 1,091 85 249 30 168 81 65 74 75 135 19 50 Nov. 15 1,089 75 309 60 143 71 65 101 75 90 66 4 30 Other bills discounted: Oct. 25 4,758 1,474 321 478 342 136 417 146 147 112 301 Nov. 1 5,068 1,525 321 491 362 141 417 146 141 1,124 101 299 Nov. 8 5,384 321 477 362 170 433 156 147 1,321 98 291 Nov. 15 5,: 1^500 321 503 327 167 430 156 159 1,471 98 264 Total bills discounted: Oct. 25 5,751 1,787 384 616 452 146 562 206 177 949 116 356 Nov. 1 6,248 100 1,800 376 664 482 231 525 206 241 1,189 105 329 Nov. 8 6,475 85 1,857 351 645 443 235 507 231 282 1,381 117 341 Nov. 15 6,485 75 1,809 381 646 398 232 531 231 249 1,537 102 294 Industrial advances: Oct. 25 11,763 1,571 1,998 3,136 339 1,016 644 445 7 828 200 522 1,057 Nov. 1 11,680 1,520 1,983 3,144 338 1,013 678 444 7 818 162 518 1,055 Nov. 8 11, 623 1,501 1,984 3,145 337 1,003 444 7 812 161 512 1,054 Nov. 15 11, 561 1,422 1,974 3,153 332 1,007 444 7 810 185 510 1,054 U. S. Government securities, direct and guaranteed: Bonds: Oct. 25 1, 315, 942 95,178 416, 676 113,124 136, 950 66, 530 52, 347 143, 664 44,078 35,051 57,790 46,908 107, 646 Nov. 1 1, 315, 942 95,198 416, 243 113,099 136,970 66, 623 52, 392 143, 719 44.106 35,087 57,879 46, 951 107,675 N No o v v . . 8 15 1 1, , 3 3 0 1 5 3 , , 4 4 9 2 42 9 9 4 5 , , 1 5 0 3 0 8 4 4 1 1 4 0 , , 6 7 0 9 7 8 1 1 1 1 2 2 , , 8 0 6 7 9 4 1 13 3 5 6 , , 8 9 0 7 7 4 6 66 6 , , 7 5 3 5 9 1 5 52 2 , , 1 4 9 1 6 7 1 1 4 4 2 3 , , 8 6 4 3 5 0 4 4 3 4 , . 8 1 9 0 7 7 3 3 4 5 , , 1 9 1 8 9 6 5 57 7 , , 8 9 5 9 4 8 4 4 6 6 , , 9 78 7 6 9 1 1 0 0 6 7, , 5 9 7 4 0 3 Notes: Oct. 25 1, 245,497 90, 084 394, 370 107,068 129, 619 49, 545 135, 972 41, 716 33,174 54,697 44,397 101,886 Nov. 1 1, 245, 497 90,103 393, 960 107,045 129, 638 63,058 49,588 136,025 41, 744 33,209 54,781 44,438 101,908 Nov. 8 1, 247,497 90, 291 393, 642 107,163 129, 889 63,365 49, 765 136, 366 41,875 33,342 55,065 44, 603 102,131 Nov. 15 1, 239,172 89, 738 389, 944 106, 387 129,071 63,172 49, 545 135, 593 41, 667 33, 211 54,919 44,412 101, 513 Bills: Oct. 25 174, 320 12, 608 55,196 14,985 18,142 8,813 6,934 19,031 5,839 4,643 7,655 6,214 14,260 Nov. 1 159, 380 11, 530 50, 413 13, 698 16, 589 6,345 17, 407 5,342 4,250 7,010 5,686 13,041 Nov. 8... 125, 380 9,075 39, 563 10,770 13,055 6,368 5,002 13, 705 4,209 3,351 5,534 4,483 10, 265 Nov. 15 104, 705 7,583 32, 949 10,906 5,338 4,186 11,457 3,521 2,806 4,640 3,752 8,578 Total U. S. Government securities, direct and guaranteed: Oct. 25 2, 735, 759 197, 870 866, 242 235,177 284,711138,312 108,826 298, 667 91, 633 72,868 120,142 97, 519 223, 792 Nov. 1 2, 720,819 196,831 860,616 233, 842 283,197137, 750* 108, 325 297,151 91,192 72, 546 119,67097,075 222,624 Nov. 8 2, 686, 819 194,466 847, 812 230, 802 279, 751136, 472 107,184 293, 701 90,191 71, 812 118, 59796,065 219, 966 Nov. 15 2, 649, 319 191, 859 833, 691 227, 450 275, 951135,061 105, 927 289,895 89,085 71,003 117,413 94,950 217,034 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1099 DECEMBER 1939 FEDERAL RESERVE BULLETIN STATEMENT OF CONDITION OF THE FEDERAL RESERVE BANKS, BY WEEKS—Continued [In thousands of dollars] Total Boston Y N o e r w k P p d h h e i l i - l a a- C la le n v d e- m Ri o c n h d - la A n t t - a Chicago L S ou t. is n M o e l a i i n p s - - K C s a a it n s y - Dallas F c S i r s a a c n n o - ASSETS—Continued Total bills and securities: Oct. 25 2, 753, 273 199,441 870,027 238, 697 139, 780109,616 299, 674 91, 73, 873121, 291 98,157 225, 205 Nov. 1 2, 738, 747 198, 451 864, 399 237, 362 284,199139, 245109, 234 298,120 91, 405 73,605121,021 97, 698 224, 008 Nov. 8 . 2, 704, 917 196, 052 851, 653 234, 298 280, 733137, 918108, 082 294, 652 90, 429 72, 906120,139 221, 361 Nov. 15 2, 667, 365 193, 356 837,474 230, 984 276, 929136, 466106, 822 290, 870 89, 323 72,062119,135 95, 562 218, 382 Due from foreign banks: Oct. 25 47 3 18 5 4 2 2 1 1 1 4 Nov. 1 4 3 18 5 4 2 2 1 1 1 4 Nov8 47 3 18 5 4 2 2 1 1 1 4 Nov. 15 4' 3 18 5 4 2 2 1 1 1 4 Federal Reserve notes of other banks: Oct. 25 23, 385 553 4,746 943 1,401 2,168 2,603 1,640 1, 411 1,605 557 2,789 Nov. 1 22,133 576 4, 236 895 1,851 2,702 I,- 2,999 1,427 1,207 1,687 446 2,621 Nov. 8 . 20, 844 688 3,306 670 1,546 2,884 1,745 2,228 1,974 1,422 545 2,748 Nov. 15 23, 216 592 4,253 1,218 1,506 3T" 1,502 2,481 1,865 1^097 1, 387 3,549 Uncollected items: Oct. 25___ 662, 257 66,123 167, 343 48, 775 72,080 56, 963 25, 217 90, 983 30, 287 19,136 28,780 26, 388 30,182 Nov. 1 716,496 77, 684 175,119 47, 739 87,404 61, 507 27, 658 91,065 30,545 18,990 34,103 25,042 39, 640 Nov. 8 578,163 59,100 116,931 37, 844 64, 648 53, 541 25, 657 86, 379 29, 054 18, 553 30, 246 26, 709 29, 501 Nov. 15 964,81' 98,421 244,816 70, 797 117,076 79, 988 34,519 138, 467 41, 227 24,178 40,140 36,332 38, 856 Bank premises: Oct. 25 42,108 2, 903 4, 5,894 2, 564 2,040 3,880 2,256 1,508 3,132 1,272 3,157 Nov. 1 42,037 2, 4,594 5,894 2,557 2,041 3,871 2,251 1,501 3,119 1,266 3,157 Nov. 8___. 42,037 4,594 5,r' 2,557 2,041 3,871 2,251 1,501 3,119 1,266 3,157 Nov. 15 42,035 4,594 2,557 2,041 3,871 2,250 1,500 3,119 1,266 3,157 Other assets: 5,894 Oct. 25 69, 436 4,534 22, 252 6,027 7,644 4,081 2,923 6,928 2,173 1,875 2,842 2,390 5,767 Nov. 1 69,492 4,536 22,193 5,998 7,652 4,078 2,930 6,991 2,180 1,886 2,859 2,418 5, 771 Nov. 8 70,073 4,572 22, 392 6,044 7,736 4.125 6,988 2,188 1,894 2, 886 2,443 5,837 Nov. 15 70, 581 4,605 22, 568 7,766 4,151 2^ 976 7,056 2,205 1,918 2,913 2,469 5,874 Total assets: Oct. 25 18, 707, 9231,157,009 8, 2819,,0081,060,732 1, 279, 234 6067,08 428,4512, 951, 361553,440 354, 821513, 441362, 4041,151,314 Nov. 1 _.. 18, 776,8721,170, 245, 3461,079,0741, 328,063 617, 850 435, r20'2, 958,121555, 392352, 440518,12>f6 335599 ,3 33030 1,157, 687 Nov. 8 . 18,607,3181,144, 084, 0281,100, 5531,296,368 6r1 1,1'8"8" 440, 3102, 966, 367565, 875 354, 456511,483371,1301,161,351 Nov. 15 1,173,305 8,177'.,7351,140, 1, 362,045 643, 765 447,429i 3,^ 025, 931i78, 396 356, 7946-26. 816 39,19811,173, 679 LIABILITIES Federal Reserve notes in actual circulation: Oct. 25 4, 743, 717 400,330 1, 187,036 333,002 440, 727220,481158,778 1,043,041187,,115737, 274 177, 792 82, 536 375, 563 Nov. 1 4, 781, 385 400, 3051, 202, 765 333, 989 440,096223, 798160, 345 , 047, 75018888,,9998 137,913179,269 83, 775 382,382 Nov. 8 4, 817,094 400, 2311, 205, 831 337, 704 448, 301225, 247160, 585 , 051, 48718899, 4408 138, 706180, 503 84,186 394,905 Nov. 15 4,805, 254 399, 4101, 203, 510 337, 366 448, 015 225, 548159, 8641,052, 207189, 3382 138, 700180,396 83, 555 387, 301 Deposits: Member bank—reserve account: Oct. 25 11, 950, 446 606, 6766,404,940 581,117 651, 208 278,174 199,166 1, 682, 706 285, 712 153, 525740,802207, 650 628, 741 Nov. l._. 11,813,664 608,1746, 256,122 585, 326 668, 843 278, 215 195,014 1, 670,938 290,947 152,126 263,862311, 535 632, 561 Nov. 8 11, 748, 660 602, 868 \6 ;139,740 609, 704 659, 384 291, 428 202, 943 1, 673, 756 221, 024 627,053 Nov. 15 11, 587,156 570, 7316,096, 910 595, 266 652, 091 279, 791 198, 038 1, 639, 906 295^ 690 151,193 263, 231374, 851 626, 355 U. S. Treasurer-general account: Oct. 25 326,003 21, 652 95, 204 13,836 33, 899 16, 960 10, 874 29, 745 18, 621 23,931 13, 582 18,044 29, 655 Nov. 1 349, C30 21, 441 112, 045 16, 904 42, 662 19,169 18, 923 40,158 12,915 20,825 16,047 11, 211 16, 730 Nov. 8 347, 622 20, 318 115, 452 18, 937 34, 225 6,904 16, 756 51, 049 11,628 19, 398 14,017 11, 581 27, 357 Nov. 15 564,123 41, 933 152, 504 44, 300 63, 624 20,487 20,195 90, 641 21, 337 20,824 19, 246 26, 634 42, 398 Foreign bank: Oct. 25 418, 898 30, 875 142, 998 41, 613 39, 897 18, 447 15, 015 51, 909 12,441 9,867 12, 441 12, 441 30, 954 Nov. 1 470,881 33,889 168, 062 45, 674 43, 791 20, 241 16, 480 56, 975 13, 655 10, 830 13,655 13, 655 33, 968 Nov. 8 456, 231 33, 079 160, 645 44, 582 42, 743 19, 763 16, 086 55,612 13, 329 10, 571 13, 328 13, 328 33,165 Nov. 15 454, 277 33, 078 158, 688 44,581 42, 743 19, 763 16, 086 55, 61213, 329 10, 571 13, 329 13, 329 33,168 Other deposits: Oct. 25 272, 874 6,006 183, 713 10, 657 7,665 1,911 7,111 5,307 7,760 5,007 900 3,379 33,458 Nov. 1 _ _ . 319,449 5,881 218,646 18,333 12, 832 2,953 5,990 5, 5881 8,308 5,486 1,105 4,300 30,027 Nov. 8 322,911 6,996 225,066 17,151 12, 631 4,647 6,202 5,330 7,474 5,329 1,098 4,812 26,175 Nov. 15 317, 728 7,874 228,860 15, 908 8,961 3,994 6,668 4,792 6,582 5,021 845 4, 599 23, 624 ' Less than $500. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1100 FEDERAL RESERVE BULLETIN DECEMBER 1939 STATEMENT OF CONDITION OF THE FEDERAL RESERVE BANKS, BY WEEKS—Continued [In thousands of dollars] Total Boston Y N o e r w k P p d h h e i l i l - a a- C la le n v d e- m Ri o c n h d - la A n t- ta Chicago Lo S u t i . s n M o e l a i i n s p - - K C s a i a t n s y - Dallas F c S r is a a c n n o - LIABILITIES—Continued D eposits—C ontinued: Total deposits: Oct. 25 12, 968, 221 665,i, 209 6>,, 826, 855 647,223 732, 669 315,492 232,166 1,769, 667 324, 531492, 359 297, 725241, 514 722,808 Nov. 1 12,953,024 669,i, 385 6i,, 754,875 666,237 7~"6~8, 1'2~8~ ~32 0, 5842"36-, 4•C-71 ,17,73,659 3T25', 825 189, 267 294, 672040,701 713,286 Nov. 8 12, 875,424 663, 261 6i,, 664400;,903 690, 374 748,983 322, 742 241, 9871, 785, 747336, 741.190,^ 750 289,441250, 745 713, 750 Nov. 15 12, 923, 284 653,I, 616 i6, ,636, 962 700,055 767^ 419 324',035 240, 9871, 790, 951336, 938187, 609 296, 754 262,413 725, 545 Deferred availability items: Oct. 25 644,088 67,130 153, 732 47, 580 72, 614 55, 681 24, 598 93, 324 30, 998 15,928 27, 628 27,147 27, 728 Nov. 1 690, 547 76,117 166, 223 45,942 86, 614 58,435 25, 607 91, 420 29, 814 16,009 33,906 23,658 36,802 Nov. 8 562,106 56, 349 115,583 39,496 65, 766 48,123 24, 798 83, 744 28,929 15, 721 31, 216 24, 975 27,406 Nov. 15 916,914 95,835 215,1411 70,377 113, 264 79,102 33, 635 137, 358 41, 297 21, 216 39, 346 34,788 35, 555 Other liabilities, including accrued dividends: Oct. 25 4,147 342 1,449 453 394 118 185 384 164 123 175 112 248 Nov. l._ 4,278 371 1,477 438 410 121 193 413 167 131 179 117 261 Nov. 8 4,453 358 1, 582 447 428 127 195 429 175 135 185 120 272 Nov. 15 4,853 401 1,855 468 446 131 199 445 181 139 199 125 264 Total liabilities: Oct. 25.... 18, 360,1731,133,0118,169,072 1, 028, 258 1, 246, 404 591, 772 415, 727 2, 906,416 5423,4 85,5 3684503, 320 351, 309 1,126,347 Nov. 1 18, 429, 2341,146,178 81,112255 | 340 1, 046, 606 1, 295, 248 602, 938 422, 552 2,913, 24"2 "5443,438,0 43205C8,024 348, 2511,132, 731 Nov. 8 18, 259,0771,120,199 7,963, 1,068,021 555, 253345, 312 5C1,345 360,026 1,136,333 Nov. 15 18, 650,3051,149, 262 8, 057, 4681,108, 266 1, 329i 144 628,816 434', 685 2, 980'5,6 79, 67198347, 664516, 695 380,8811,148, 665 CAPITAL ACCOUNTS Capital paid in: Oct. 25 135, 557 9,383 50, 909 12,117 13, 792 5,105 4,561 13.803 3,992 2,919 4,303 4,050 10,623 Nov. 1 135, 580 9,384 50,912 12,117 13,796 5,107 4,561 13,805 4,004 2,919 4,303 4,051 10,621 Nov. 8 135, 597 9,383 50,914 12,115 13, 797 5,107 4,561 13.804 4,019 2,922 4,303 4,051 10, 621 Nov. 15 135,602 9,383 50,915 12,115 13,799 5,108 4,561 13,804 4,019 2,922 4,303 4,052 10,621 Surplus (section 7): Oct. 25 149,152 10,083 52, 463 13, 696 14, 323 5,630 22, 666 4,685 3,153 3,613 3,892 9,965 Nov. 1 149,152 10, r 52, 463 13, 696 14, 323 5,630 22, 666 4,685 3,153 3,613 9,965 Nov. 8 149,152 10,083 52,463 13, r 14, 323 5,630 22, 666 4,685 3,153 3,613 3,892 9,965 Nov. 15 149,15f 10,083 52, 463 13 14, 323 5,630 22, 666 4,685 3,153 3,613 3,892 9,965 Surplus (section 13b): Oct. 25 27, 264 2,874 7,457 4,416 1,007 3,293 713 1,429 545 1,001 ,142 1,266 2,121 Nov. 1____ 27, 264 2,874 7,457 4,416 1,007 3,293 713 1,429 545 1,001 ,142 1,: ' 2,121 Nov. 8 27, 264 2,874 7,457 4,416 1,007 3,293 713 1,429 545 l,0Gl ,142 2,121 Nov. 15 27, 264 2,874 7,457 4,416 1,007 3,293 713 1,429 545 1,001 ,142 1,266 2,121 Other capital accounts: Oct. 25 35, 777 1,658 9,107 2,245 3,708 1,555 1,820 7,047 1,365 2,064 ,063 1,887 2,258 Nov. 1 35,642 1,654 9,174 2,239 3,689 1,529 1,814 6,979 1,354 2,047 ,044 1,870 2,249 Nov. 8 36, 228 1,670 9,295 2,305 3,763 1,566 1,841 7,061 1,373 2, (" .,080 1,! 2,311 Nov. 15 36, 361 1,703 9,432 2,315 3,772 1,565 1,840 7,071 1,349 2,054 1,063 1,890 2,307 Total liabilities and capital accounts: Oct. 25 18, 707, 9231,157',, 009 8.289,0081, 060, 732 1, 279, 234 606, 708 428,4512, 951, 361553, 440 354,821 513, 441362, 4041,151, 314 Nov. 1 18, 776, 8721,170,173 8,245, 3461,079,074 555, 392 352,440 518,126359, 3301,157, 687 Nov. 8 18, 607, 3181,144, 2 084, 0281,100, 553 565,875 354,456 511,483371,1301,161, 351 Nov. 15 18,998, 6841,173, 305 8,1177 7," 7"35. , 11,40,808 1, 362', 045 643, 765 447,429 3,025, 931578,396 356,794 ,526, 816 391, 9811,173,679 Contingent liability on bills purchased for foreign correspondents: Oct. 25 101 Nov. 1 101 Commitments to make industrial advances: Oct. 25 10,156 493 1,891 955 1,407 858 415 567 3,404 Nov. 1 10,023 493 1,885 935 1,358 857 410 567 3,354 Nov. 8 9,966 484 1,934 923 1,356 856 410 567 3,273 Nov. 15 9,919 481 1,907 922 1,362 850 410 567 3,257 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1101 DECEMBER 1939 FEDERAL RESERVE BULLETIN INDUSTRIAL ADVANCES AND COMMITMENTS UNDER SECTION 13b OF THE FEDERAL RESERVE ACT, JUNE 19, 1934, TO NOVEMBER 15, 1939 [Amounts in thousands of dollars] Applications Applications approved to date by Federal Reserve banks (with and received by Applications under without conditions) Federal Reserve consideration by banks after con- Federal Reserve Federal Repaid, Financ- Date (last Wednesday of sideration by In- banks Federal Reserve expired, ing instieach month) dustrial Advisory Total Reserve bank Approved or with- tution Committees, net bank commit- but not drawn by particiadvances ments com- appli- pations out- out- pleted a cant, out- Number Amount Number Amount Number Amount standing* standing etc. standing s 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. 314__ 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. 214__ 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 12,471 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. 30... 9,355 401, 228 7 532 2,743 184,152 14, 667 11,009 1,220 144,812 12,444 Sept. 27.. 9,366 402, 305 • 2 370 2,752 185, 234 14,454 10, 517 1,938 146,156 12,169 Oct. 25_... 9,388 402,944 1 70 2, 763 186,034 14, 545 10,156 1,764 148,037 11,532 Nov. 15 •».. 9,396 404,144 3 470 2,768 186, 799 14, 341 9,919 2,267 148,888 11, 384 i Includes industrial advances past due 3 months or more which are not included in industrial advances outstanding in waskly statement of condition of the Federal Reserve banks. J 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 $1,513,763 November 15, 1939. 4 Tuesday. 6 Latest date for which figures are available. FEDERAL RESERVE NOTES—FEDERAL RESERVE AGENTS' ACCOUNTS, BY WEEKS [In thousands of dollars] Phila- Min- Kan- San Total Bos- New del- Cleve- Rich- At- Chi- St. neap- sas Dallas Franton York phia land mond lanta cago Louis olis City cisco Federal Reserve notes: Issued to F. R. bank by F. R. agent: Oct. 25 5,060,802429,0431, 283,175351, 207 461,881231,531170,1191,080,862 199, 722141, 662187,064 91,390 43133,,:146 Nov. 1 5,069, 242429,0801,283,981335511',, 772266 446622',, 537 235, 667171, 7431,080,936199,996142,385186, 504 90, 728 43133,,995599 Nov. 8. 5,102,403427,1621, 290,398335544,,003366 446677,, 992211 236,425172,1781,081,875 200,, 249143, 753189, 276 91, 676 44=77,,'4'5"'4 Nov. 15 5,096, 606424,9131, 288^ 849 359, 541 468, 229 237, 691272,1821,079, 3422 20000,, 603143,162188,466 90, 900 442, 727 Held by Federal Reserve bank: Oct. 25_ 317,085 28, 713 96,139 18, 205 21,154 11,050 11,341 37,821 12,565 4,388 9,272 8,854 57, 583 Nov. 1 287, 857 28, 775 81, 216 17, 737 22,441 11,869 11, 398 33,186 10,998 4,472 7,235 6,953 51, 577 Nov. 8 285, 309 26, 84,567 16, 332 19, 620 11,178 11, 593 30,388 10,841 5,047 8,773 7,490 52, 549 Nov. 15 291, 352 25, 503 85, 339 22,175 20, 214 12,144 12, 318 27,135 11,221 4,462 8,070 7,345 55,426 In actual circulation:1 Oct. 25 4, 743, 71400,3301,187,036333,002440,727220,481158, 7781,043,041 137, 274177, 792 82, 536 375, 563 N N o o v v . . 8 1 4 4, , 8 7 1 8 7 1 , , 0 3 9 8 4 54 40 0 0 0 , , 2 3 3 0 1 51 1 , , 2 20 0 5 2 , , 8 7 3 6 1 5 3 3 3 3 7 3 , , 9 7 8 0 9 4 4 4 4 4 0 8 , , 0 3 9 0 6 1 2 2 2 25 3 , ; 247 1 1 6 6 0 0 , , 3 5 4 8 5 51 1 , , 0 0 5 47 1 , , 7 4 5 8 0 7 1 18 8 8 9 ; , 4 9 0 9 8 8 1 "1 3 3 8 7 I! ,! , 9 1 70 3 6 1 18 7 0 9 , , 2 5 6 0 9 3 8 8 3 4 , , 1 7 8 7 6 5 3 3 9 8 4 2 , , 9 3 0 8 5 2 Nov. 15 4,805, 254"1,410 1, 203, 510337, 366 448,01 225, 548159,8641,052, 207 189, 382 13I8,, 700180, 396 83, 555 387, 301 Collateral held by bank as security for notes issued to bank: Gold certificates on hand and due from U. S. Treasury: Oct. 25 5,164,000440,0001, 305,000 360,000 465,000 235,000174,0001, 090,000 203,000 143, 500190,000 94, 500 464:,,000 Nov. 1 5,166,000440,0001, 305,000360,000 465,000 237,000174,0001,090,000 203,000 143, 500190, 000 94, 500 464:!,000 Nov. 8 5,177,000440,0001, 305,000360,000 471,000 240,000174,0001,,090,,000 20,3,,0 00 145, 159000,000 94, 500 464:!,000 Nov. 15 5, 202,000440,0001,315,000370,000 471,000 245, 000174,00011,009900,000000 2003,00000 41 45, 0500 190,000 94, 500 464,000 Eligible paper: Oct. 25 1,626 353 63 310 110 74 716 Nov. 1 2,132 100 370 55 340 110 144 1,013 Nov. 8 2,346 85 418 30 301 185 1,192 Nov. 15 2,337 75 360 60 256 135 148 1,303 Total collateral: Oct. 25 5,165, 626440,0001,305, 353360,063465,000235, 310174,0001,090,000 203,110143, 574190,716 500 464,000 Nov. 1 5,168,132440,1001, 305, 370360,055465,000237, 340174,0001,090,000 203, "143, 644191,013 500 464,000 Nov. 8.. 5,179, 346440,0851,305,418 3601;,030471,000240,301174,0001,090,000 203. 145, 685 '"1 9,1192 500 464,000 Nov. 15 5, 204, 337440,0751, 315, 360370,060471,000245, 256174, 0001, 090, 000 203,135145, 648 19,1303 500 464,000 1 Includes Federal Reserve notes held by the United States Treasury or by a Federal Reserve bank other than the issuing bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1102 FEDERAL RESERVE BULLETIN DECEMBER 1939 RESERVE POSITION OF MEMBER BANKS, MEMBER BANK RESERVE BALANCES OCTOBER, 1939 BY CLASSES OF BANKS [Averages of daily figures. In millions of dollars] [Averages of daily figures. In millions of dollars] Reserves with Centralreserve Cl a a n ss d e s d i o s f tr b ic a t n s ks m G d d r a e e o n - - s d s m N d d a e e e n - - t d p T o d i s m e i - t e s Feder b a a l n R ks eserve b m a b A n e e m k l r l s - * N c e i w ty ban C k h s i- b s c e a R i r n e t v k y - e s b C a t o n r u y k n s - * posits posits > Re- Ex- York cago quired Held cess Total reserves held: All member banks _ _36,732 29,973 11, 735 6,372 11,862 5,490 1938— O S c e t p o t b em er ber 8 8 , , 1 5 9 4 6 6 3 3, , 6 9 6 3 9 9 8 88 6 4 1 2 2 , , 4 3 0 5 9 2 1 1 , , 3 3 1 1 7 4 Cen N C tra h e l i w c r a e Y g se o o r r v k e city banks: 1 2 3, , 8 5 3 8 1 8 1 2 2, , 5 9 0 5 6 2 4 7 9 4 5 4 2,9 5 8 9 4 5 5 1, , 1 9 1 5 2 8 2,9 5 7 1 4 8 1939— N D F J e o e a b c v n r e u e u m m a a r b r y b y e . e r r 8 8 8 9 , , , , 7 0 7 9 2 2 4 2 9 7 5 5 4 4 4 4 , , , , 4 4 0 1 8 0 3 7 2 9 9 5 8 8 7 6 8 9 8 7 8 8 0 3 2 2 2 2 , , , , 4 4 3 4 7 2 8 0 4 6 7 5 1 1 1 1 , , , , 3 3 3 3 6 3 6 2 4 8 6 2 Rese B N P A R C C r h v o h i e l t c e l i e s i w a l h v c t a o n a c e m d Y g n t l i a e a t o o y o n l d n p d r d d i b d k h i s i s a t i s d t d r d a n t r i i r i i i k s c s i s c d t c t s t t r t r r i t : i i s i c c c t t t r t ict.. 1 1 1 1 , , , , 2 3 3 7 2 7 7 1 3 2 3 2 8 5 4 6 8 6 1 1 1 1 1 1 , , , 1 3 0 9 1 5 5 0 3 8 2 7 9 0 2 2 8 2 7 4 8 7 2 1 2 5 1 8 2 0 4 5 7 7 8 4 8 6 5 5 7 1 2 2 1 1 9 6 3 9 0 9 1 7 9 9 8 3 0 4 4 3 4 3 1 1 0 9 3 9 3 8 5 7 8 3 5 0 2 1 2 2 1 1 1 2 9 6 3 4 1 0 6 6 7 2 3 3 Week J A J A M M S O e u u e n p u c a a l n p d y r t g y r e o i t i c u l e n b h s m g e t r b ( e F r riday): 1 1 1 1 1 9 9 9 0 0 1 0 1 , , , , , , , , 0 9 6 4 8 0 6 3 2 4 6 8 9 2 5 2 1 3 2 5 7 4 9 1 4 4 5 5 5 5 5 5 , , , , , , , , 8 4 1 0 8 0 3 9 8 9 7 9 6 4 6 5 9 5 2 4 6 9 6 8 1 1 , , 0 1 8 8 6 7 8 9 0 1 7 4 9 9 2 8 9 2 8 8 4 3 3 1 2 2 2 2 3 3 2 2 , , , , , , , , 5 6 0 2 8 4 8 7 4 3 0 2 0 8 7 2 4 0 9 7 3 5 8 3 1 1 1 1 1 1 1 1 , , , , , , , , 5 5 3 3 4 3 4 4 8 5 9 9 8 9 1 5 8 9 7 5 6 3 5 1 D S S K M a t a a . i n l n n l L s a n F o a s e r s u a a d i p n C s i o c s i d l t i t i s r y i s i c s c o t d t r d i i d i c s s i t t t s r r t i i r c c i t c t . . t . . . . 2 1, , 0 2 8 4 7 7 5 0 7 6 1 3 9 2 0 1,7 4 6 2 6 8 4 6 9 6 4 7 8 5 0 1,9 1 1 1 2 9 5 7 2 4 0 8 9 8 4 1 1 0 8 2 5 2 8 8 2 6 3 2 2 5 1 1 0 8 7 3 5 1 8 1 2 1 9 4 3 7 6 3 4 2 7 3 1939— S O O O S e c c c e p p t t t . . . t t . . 6 2 1 2 2 0 3 9 2 1 1 1 1 1 1 1 1 1 1 , , , , , 9 7 5 6 6 2 9 4 4 7 1 3 7 0 5 5 5 5 5 5 , , , , , 8 8 8 9 9 9 9 9 8 2 9 6 8 7 5 1 1 1 1 1 , , , , , 0 0 0 0 1 9 9 9 4 1 0 4 1 9 2 3 3 3 3 3 , , , , , 1 1 1 2 0 6 0 0 2 5 6 7 1 1 0 1 1 1 1 1 , , , , , 5 5 5 5 6 8 5 6 9 0 0 0 9 1 2 Total 12, 733 9,576 4,652 1,908 3,203 1,295 N O o ct v . . 2 3 7 1 11 2 , , 0 9 0 2 1 0 6 5 , , 0 93 2 0 3 1 1 , , 1 1 2 3 9 7 3 3, , 2 2 6 6 3 5 1 1 , ,5 5 9 8 0 3 Country banks: Excess res N er o v v e . s : 10 11, 759 5,760 1,119 3,271 1,609 N P B R A M K D C C S S h a t o h i l e a a t . i c e n l i i w s n n l a l v h c l L t a n s a o n a F e m o d a e s Y g l n t r s u a e a a o a o d o n l i p d n n C p s i d r d o d c s i d k h i i s d l t i i t s i i t r s d s y i d t s r a d i c s t r i i c i r i s o t i c s d s t i r c d d t t t c t i r i t r d i i r c i s t i s s i c . t i t c c t t s t r t r r t t i i i r c c c i t c t t . _ . . . t . . . . 1,3 3 4 9 6 6 4 8 5 3 3 5 5 7 2 7 9 1 9 5 4 2 8 5 3 4 3 3 0 3 7 0 5 1 3 6 4 4 2 6 9 2 2 3 3 2 5 2 4 0 1 8 2 8 5 3 3 9 5 2 7 4 1 2 4 1 3 5 4 0 4 3 1,3 8 3 2 2 5 2 6 7 1 2 1 9 5 7 7 4 2 5 5 7 7 2 0 5 0 4 2 1 4 8 7 0 3 5 4 1 1 1 9 8 4 3 4 4 4 4 0 8 0 5 7 3 0 8 6 2 4 0 6 8 3 8 3 2 1 1 1 6 7 6 0 9 6 9 4 7 7 7 5 5 4 8 8 6 1 3 5 4 1 8 4 1 1 8 3 2 7 7 6 2 3 3 2 0 1 6 9 8 7 7 2 3 0 4 8 5 3 1 1 9 9 3 3 8 9 — — N A J D J A M O F M S J u u e p o e u c a e a n a l b n c t r v y g p y r e o i e r u e t u c l b u e m a m s h m e a r t . b y r b r b y e e e r r r 3 3 2 3 3 3 3 3 4 4 4 4 , , , , , , , , , , , , 1 2 2 4 6 2 4 2 9 9 4 3 4 4 1 0 0 8 2 2 2 7 3 7 3 6 2 2 7 0 4 6 6 6 2 3 2 2 2 1 2 2 2 1 1 1 1 1 , , , , , , , , , , , , 9 5 7 9 7 3 3 0 3 5 4 5 9 8 3 8 1 8 0 4 9 0 8 6 6 9 4 6 2 2 2 7 4 4 7 5 3 3 2 3 3 2 3 3 3 3 1 1 9 7 7 7 6 6 6 6 6 7 0 6 9 5 6 4 0 0 2 1 3 9 5 4 1 1, , 0 0 8 6 7 7 7 9 7 6 7 6 4 1 5 9 4 9 1 1 4 6 3 5 6 3 8 4 4 8 2 0 1 9 4 8 4 4 4 4 4 4 5 5 5 5 6 5 7 8 3 9 6 5 9 2 1 4 2 8 9 0 1 4 7 7 5 6 1 6 9 1 Total _ . 7,579 4,939 5,843 885 1,588 704 S O e c p to te b m er ber 5 5 , , 1 4 9 9 8 0 2 2, , 9 9 7 4 4 3 4 5 3 1 0 8 1 1 , , 2 14 9 7 5 6 7 7 0 8 4 Week ending (Friday): c (e a x N 1 s h c O G e T p i r t o t E e s m . s p — s r d i S e v i e n m a e t a p e t n a r o b d b c l a e e d n s e a s k p t s o o f s f o a i o t c n s t o d m l o le A f i c n p m t u i . o e s 1 n r 1 d i . 1 c e 3 a m n f a o n r b d r p a e b n r a c c l h e a n e n s t c a e g o s e f s w f o o it r f h e d i d g e n o p m o b s e i a s t n s ti k c r s e ) b q a u a n i n r k d e s d 1939— S O O S e c c e p p t t . . t t . . 6 1 2 2 3 9 2 5 5 5 5 , , , , 3 3 4 3 1 6 0 5 7 1 2 2 2 2 2 2 , , , , 9 9 9 9 5 3 8 2 6 6 2 7 4 5 5 5 6 0 0 0 6 3 4 4 1 1 1 1 , , , , 1 2 2 2 8 2 2 6 0 3 4 5 706 to be held as reserves Oct. 20 5,541 3,004 515 1,306 717 Oct. 27 5,590 3,020 530 1,342 Nov. 3 P5, 503 2,924 535 1,339 Nov. 10 P5, 358 2,772 522 1,340 p Preliminary. 1 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] Member banks in larger centers Member banks in smaller centers All member bank.5 (places over 15,000) (places under 15,000) Federal Reserve district Gross demand Time Gross demand Time Gross demand Time Oct. Sept. Oct. Sept. Oct. Sept. Oct. Sept. Oct. Sept. Oct. Sept. Boston 2,128 2,050 647 651 1,989 1,914 518 522 138 136 129 129 New York . 15,162 14,876 2,295 2,275 l 1, 272 i 1, 227 i 1,048 i 1,042 302 302 502 501 Philadelphia 2,001 1,932 1,120 1,123 1,755 1,692 667 670 246 240 453 453 Cleveland 2,358 2,280 1,397 1,397 2,123 2,047 1,097 1,098 235 233 300 299 Richmond 1,337 1,298 558 556 1,143 1,110 363 362 195 189 195 194 Atlanta 1,241 1,201 400 400 1,089 1,052 314 314 151 149 87 86 Chicago _ _ _ 5,064 4,939 1,795 1,784 1 1, 901 i 1,858 i 1,006 i 999 332 326 294 293 St. Louis 1,255 1,210 420 420 1,026 988 303 303 229 222 117 317 Minneapolis 732 722 362 362 541 536 178 177 191 186 185 185 Kansas City. _ 1,545 1,520 315 315 1,199 1,176 201 200 346 343 114 115 Dallas 1,306 1,256 231 232 1,004 966 186 186 302 290 46 46 San Francisco 2,602 2,537 2,194 2,193 2,477 2,416 2,096 2,095 125 121 98 98 Total 36, 732 35, 820 11, 735 11, 706 117, 520 116, 981 i 7,976 i 7,968 2,792 2,737 2,520 2,515 * Excluding central reserve city banks, for which figures for latest month are shown in table above. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1939 FEDERAL RESERVE BULLETIN 1103 KINDS OF MONEY IN CIRCULATION [Outside Treasury and Federal Reserve banks. In millions of dollars] Treas- Subsid- Federal Na- Gold Silver Silver ury iary Minor United Federal Reserve tional End of month Total certifi- dollars certifi- notes silver coin States Reserve bank bank cates cates of 1890 coin notes notes notes notes 1938—October.... 6,700 76 1,297 351 148 4,282 206 November. 6,787 76 1,312 356 151 4,349 203 December.. 6,856 75 1,339 357 151 257 4,405 201 1939—January- 6,653 75 1,269 348 149 244 4,301 198 February.. 6,731 74 1,327 350 150 246 4,320 195 March 6,817 74 1,378 352 151 251 4,350 193 April 6,905 73 1,385 354 152 255 4,426 191 May 6,967 72 1,417 358 154 259 4,449 189 June. 7,047 72 1,454 361 155 266 4,484 186 July. 7,049 71 1,446 362 156 264 4,496 184 August 7,171 71 1,465 365 157 267 4,595 182 September. 7,293 71 1,488 369 159 269 4,688 180 October 7,342 70 1,485 373 161 267 4,739 178 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 2 in cir- Un- End of month cula- assorttion i Total Coin $13 $2 $5 $10 $20 Total $50 $100 $500 $1,000 $5,000 $10,00c ed! 1938—October 6,700 5,021 540 505 32 923 1,572 1,450 1, 683 400 754 157 321 18 33 4 November 6,787 5,096 548 511 33 936 1,599 1,469 1,696 404 761 158 323 17 32 5 December 6,856 5,147 550 524 34 946 1,611 1,481 1,714 409 770 160 327 17 32 5 1939—January 6,653 4,953 538 492 32 904 1,546 1,440 1,705 403 768 160 329 17 28 6 February 6,731 5,011 541 498 33 919 1,574 1,446 1,721 406 774 161 335 17 28 1 March 6,817 5,049 544 503 33 928 1,594 1,448 1,770 411 799 165 349 17 28 2 April 6,905 5,069 548 505 32 929 1,602 1,453 1,838 418 829 170 370 18 33 3 May 6,967 5,109 554 513 33 937 1,614 1,458 1,861 422 836 172 380 17 33 3 June 7,047 5,164 558 514 33 947 1,638 1,473 1,887 428 848 176 388 17 29 3 July 7,049 5,169 561 514 33 947 1,644 1,470 1,885 426 847 175 391 17 28 4 August 7,171 5,253 566 521 34 966 1,681 1,487 1,922 433 857 180 405 17 30 4 September. 7,293 5,329 571 532 34 980 1,706 1,507 1,965 440 876 185 413 20 30 1 October 7,342 5,363 577 535 34 982 1,710 1,526 1,981 445 884 186 415 20 30 2 1 Total of amounts of coin and paper currency shown by denominations less unassorted currency in Treasury and Federal Reserve banks. 2 Includes unassorted currency held in Treasury and Federal Reserve banks and currency of unknown denominations reported by the Treasury as destroyed. 3 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 [Held by Treasury and Federal Reserve banks and in circulation, In STATES PAPER CURRENCY millions of dollars] [By selected banks and financial institutions in New York City. Silver Fed- In millions of dollars] dollars Sub- eral Naand sid- Minor United Re- tional Ship- Receipts Net End of month Total silver iary coin States serve bank Year or month ments to from ship- Net bul- silver notes bank notes Europe Europe ments receipts lion * coin notes 1936 34.8 26.2 8.6 1938—October _.„ 2,751 1,634 376 158 347 29 208 1937 21.5 47.6 26.1 November. 2,773 1,657 376 158 347 29 206 1938 33 1 34 4 1.3 December.. 2,798 1,685 376 159 347 28 203 1938—October.... 10.6 .6 10.0 1939—January....... 2,816 1,705 376 159 347 28 201 November. 3.4 1.0 2.4 February __ 2,824 1,717 376 160 347 27 198 December. .7 2.2 March 2,839 1,733 377 160 347 27 196 April 2,849 1,746 376 160 347 27 193 1939—January.... 6.7 2.0 4.7 May 2,862 1,759 377 161 347 26 191 February.. 3.0 1.0 2.0 June. _ 2,881 1,778 380 161 347 26 189 March 27.3 .9 26.4 July 2,895 1,794 381 162 347 26 186 April 46.1 .3 45.8 August 2,907 1,804 383 162 347 25 185 May.. 3.8 .7 3.1 September. 2,919 1,814 386 164 ••347 25 183 June 2.9 1.1 1.8 October 2,932 1,825 390 166 347 25 181 July 2.2 1.0 1.2 August.... 4.7 .9 3.8 September .8 .1 .7 '•Revised. October... 1.8 .2 1.6 1 Includes silver held against silver certificates amounting to $1,729, 000,000 on October 31, 1939 and $1,564,000,000 on October 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

1104 FEDERAL RESERVE BULLETIN DECEMBER 1939 ANALYSIS OF CHANGES IN GOLD STOCK OF MOVEMENT OF GOLD TO AND FROM UNITED STATES UNITED STATES * [In millions of dollars] [In thousands of dollars] Period G en o d ld o s f to p c e k ri o a d t cr I e i n n a - se g N o e ld t t g O h S a r N S i o n e u t o ( g - r h ) m g D t o e i o c l s - d - October Sept 1 e 9 m 39 ber Jan.-Oct. gold import marking pro- From or to- Total a n c a c c o t u iv n e t stock ac tr t a io n n s s - 2 d ti u o c n - Im- Ex- Im- Ex- Im- Exports ports ports ports ports ports 19341 . . 8,238 4,202.51,133.9 82.6 96.0 1935 10,125 1,887. 21, 739. 0 .2 110.7 Belgium 165,122 1936 11, 258 26.5 1,132. 51,116. 6 -85.9 131.6 ance... 3,770 1937 12, 760 1,227.9 1, 502. 51, 585. 5 -200.4 143.9 :taly 6,363 6,363 1938 14, 512 1, 751. 51, 973. 6 -333. 5 148.6 Netherlands 2,990 301,311 Sweden. 3,860 1937—July 12,446 1, 214.1 127.3 175.4 -35.5 12.7 Switzerland 1,482 78, 946 68 August 12, 567 1, 335. 7 121.6 104.8 -5.3 16.9 United Kingdom... 10,182 162, 451 1, 797,485 54 September 12, 741 1, 210. 0 174.3 145.5 9.3 12.2 Canada. 9,954 120, 850 239,264 156 October 12, 803 1, 271. 9 62.0 90.5 -8.0 14.9 Mexico 1,794 653 26, 398 206 November 12, 774 1, 242. 5 -29.3 22.1 -20.1 13.8 Central America.__ 394 445 4,847 December 12, 760 1, 227. 9 -14.0 18.0 -101.6 11.9 Argentina 4 4,509 Chile 816 8,252 1938—January. 12, 756 1, 223. 2 -4.6 2.1 -1.1 11.0 Colombia 2,102 19,006 February 12, 776 1, 200. 6 20.7 8.0 -18.2 10.0 Ecuador 143 2,101 March. 12, 795 1,183. 0 18.5 52.9 -.6 10.7 Peru 785 1,357 4,653 April 12, 869 74.3 71.1 -1.2 10.6 Venezuela 423 375 3,601 May 12 919 49.8 52.8 -53.9 11.5 Australia 8,420 5,474 55, 272 June 12, 963 44.2 55.3 -15.5 9.6 British India 2,703 4,065 33,226 July . . 13, 017 54.5 63.8 -20.9 14.2 China and Hong August... •. 13,136 118.3 166.0 -28.8 14.7 Kong 4,087 5,157 20, 518 September 13, 760 623.8 520.9 -13.3 14.1 apan 12,497 16, 425 136,017 October 14, 065 305.0 562.4 -110.2 13.5 Dhilippine Islands. 3,188 3,948 30, 349 November 14, 312 247.5 177. 8 -7.4 15.5 South Africa 2,14" 11 2,528 December . 14, 512 199.6 240.5 -62.4 13.3 All other countries2. !,854 247 1939—January 14, 682 170.0 156.3 14.1 12.2 Total 69,740 15 326,089 15 2,955,485 487 February.... 14, 874 192. 7 223.3 -48.6 10.4 March 15, 258 383.8 365.4 10.7 11.0 April 15 791 532. 3 605.8 -114.8 13.1 i Figures represent customs valuations which, with some exceptions, May 15,957 166.2 429.4 -251.6 12.6 xe at rate of $35 a fine ounce. June 16 110 153.3 240.4 -102.6 10.6 * Includes all movements of unreported origin or destination. July 16, 238 128.0 278.6 -166.2 13.1 Back figures.—See table, p. 1135, and Annual Report for 1937 (tables August 16, 646 407.6 259.9 152.1 14.0 1 and 32). September 16, 932 285.9 326.1 2.8 15.6 October 17, 091 159.9 69.7 79.5 Nov. 1-22P 17, 257 165.7 69.6 82.4 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 2 f in G e o l o d u n h c e e l d t h u e n r d ea e f r t e e r a . rmark at Federal Eeserve banks for foreign ac- [In millions of dollars] count on October 31, 1939, in millions of dollars: 1,053.1. NOTE.—Figures for domestic production of gold are those published Total, 140 133 in table, p. 1135, adjusted to exclude production in Philippines. Ad- all New other other justment based on annual figures reported by Director of Mint and Year and month report- York lead- reportmonthly imports of gold to U. S. from Philippines. For back figures ing City ing ing see Annual Report for 1937 (table 29). centers cities i cities 2 BANK SUSPENSIONS^ 1929.. 982, 531 331,938 47,504 1935.. 402, 718 184,006 190,165 28, 547 461, 889 219, 670 33,283 Member Nonmember 1937.. 469, 463 197,836 235, 206 36,421 banks banks 1938.. 405,929 168, 778 204, 745 32,406 Total, all 1938—September.. 32,192 13,085 16, 440 2,666 banks ti N on a- al State su I r n e - d1 Not N O o ct v o e b m er ber.. 3 3 2 6 , , 1 2 3 2 0 4 1 1 5 2 , , 1 4 4 2 0 5 1 1 8 7 , , 0 0 3 9 9 6 2 2 , , 8 7 9 6 5 0 December. _ 43, 209 18,879 21, 087 3,243 Number of banks suspended: 1939—January 35,180 14, 533 17, 860 2,786 1934 February... 29,973 12, 380 15, 201 2,392 1935 March 37, 322 16, 274 18, 211 2,837 1936 April 32, 822 13, 311 16,832 2, 679 1937 May. 34, 656 14,165 17, 763 2,728 1938 June. 36,883 15, 312 18, 676 2,895 1939—Jan.-Oct July .__ 33, 245 12, 794 17,683 2,768 August 33,314 13,118 17,496 2,701 Deposits of suspended banks September.. 36, 594 15,138 18, 526 2,930 (in thousands of dollars):" October 35,830 13, 683 19,029 3,119 1934 36, 937 40 1,912 34, 98, 1935 10,015 5,313 3,763 93! 1936 11, 306 507 10, 207 59S 1 Comprises centers for which bank debit figures are available begin- 1937 19, 723 7,379 1,708 10,156 48C 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.-Oct 34, 762 1,357 25, 736 5,202 2,46; 2 Cities (other than the 141 centers) for which bank debits are currently reported. The number has changed very little since 1934 and has num- 1 Represents licensed banks suspended; does not include nonlicense< bered 133 since 1936. banks placed in liquidation or receivership. Back figures.—See Annual Report for 1937 (Table 71), which also gives 2 Federal deposit insurance became operative January 1, 1934. a definition of bank debits. Figures for individual reporting cities and * Deposits of member banks and insured nonmember banks suspended totals by Federal Reserve districts are available in mimeographed form. are as of dates of suspension, and deposits of noninsured nonmembei banks are based on the latest data available at the time the suspension; were reported. Back figures—See Annual Report for 1937 (table 76). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1105 DECEMBER 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 DEPOSITS* Member banks Nonmember [In millions of dollars] banks Member banks Nonmeniber banks Call date Total Other Total ti N on a- al State M s b a a u v n i t n u k g a s s l b m n a b o e n e m n r k - 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 a s s l b n e o O r n b t 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. 30... 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—June 30 15, 287 6,338 5,242 1,096 563 8,386 1938—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—June 30 15,082 6,330 5,203 1,127 553 8,199 1939—June 30. .. 55, 992 38,027 24, 534 13, 493 10, 521 7,444 Oct. 23 6,339 5,196 1,143 Oct. 23.... 39, 287 25, 248 14,039 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 ts t- 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—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. 31 2 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—June 30 2 49, 611 21,314 28, 297 32, 603 13,141 19, 462 10,342 4,931 5,411 6,665 3,242 3,423 Oct. 2 2 3 33,075 13,470 19, 605 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 Beginning December 1938 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." 3 Figures of all banks not available. Back figures—See Annual Report for 1937 (tables 48-49). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1106 FEDERAL RESERVE BULLETIN DECEMBER 1939 CONDITION OF ALL MEMBER BANKS [In millions of dollars] Loans 1 Investments i Loans for u.S. Government obligations Call date m T l v a o i e e o n a n s n t n d - t a t - s s l Total i C t m d c a r i u o i i n n e a a s m d - r - l l - , , - p O m k a p a p e e r t e n - r b o p r T s o r u o e k r c c - c u a h r r a r it y s i i i e n n s g g e l R o st a e a n a t l s e b L a o t n o a k n s s l O o t a h n e s r * Total Direct G a u n a - r- g S p O a t a i o a t c o b n i l t a o f l d i e l i t n s - - s s O i e t t c i h e u s e r r - i a c g ul r - i- a e n r d s oth T e o rs Total Bills Notes Bonds teed d su iv b- itural 2 deal- sions 5 ers TOTAL—ALL MEMBERBANKS 1929—Dec. 31..35,934 26,150 583 2,463 7,685 3,191 714 11,515 9,784 3,863 6 249 520 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 61,113 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 61,030 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 LO, 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 LI, 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 LO, 574 662 4,277 5,635 1,797 2,047 3,376 1938—Dec. 31.. 32,070 13, 208 5,448 442 973 ?775 2,716 125 2,728 18,863 LO, 882 286 3,389 7,208 2,340 2,448 3,192 1939—Mar. 29..32,095 3,047 5,531 427 838 733 2,749 99 2,671 19,048 LO, 691 303 2,604 7,783 2,660 2,555 3,142 June 30.. 32,603 3,141 5,571 420 731 736 2,828 58 2,796 19, 462 LO, 946 441 2,720 7,786 2,831 2,554 3,131 Oct. 2... 33, 075 13,470 (8) () (8) 19, 605 LO, 893 (8) (8) (8) 2,918 2,764 3,030 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 6 638 987 926 478 680 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—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 Oct. 2... 9,044 3,116 () ) 5,928 3,401 (8) (8) (8) 1,157 662 708 CITY OF CHICAGO 9 1929—Dec. 31.. 1,757 1,448 251 533 535 309 116 63 19 94 96 1933—June 30_. 1,287 677 61 251 237 610 384 6 206 82 97 87 1934—Dec. 31. _1,581 532 55 170 202 1,049 743 164 299 279 78 129 100 1935—Dec. 31.. 1,868 476 29 149 249 1,392 1,061 213 604 243 88 141 103 1936—Dec. 31. _2,100 633 51 140 402 1,467 1,107 198 375 533 94 143 124 1937—Dec. 31.. 1,901 635 41 129 426 1,266 916 32 366 518 94 135 121 1938—Dec. 31.. 1,969 539 43 70 62 1,430 1,005 59 291 655 109 141 176 1939—Mar. 29__ 1,965 545 361 32 70 57 1,420 992 121 212 660 108 149 171 J O u c n t e . 3 2 0 . _ . _ . 2 2, , 0 0 5 5 0 2 5 56 4 3 4 348 C8 3 ) 9 71 59 1 1 , , 5 4 0 8 7 7 1 1 , , 0 0 4 1 0 7 ( 1 8 8 ) 5 ( 2 8 3 ) 4 C 62 8 1 ) 1 1 5 3 5 5 1 1 5 4 4 7 1 1 7 6 9 8 RESERVE CITY BANKS 1929—Dec. 31.. 12,029 9,084 168 664 2,775 258 3,679 2,944 1,368 6 91 165 1,112 448 1,128 1933—June 30.. 8,492 4,482 126 108 1,340 ,131 99 1,678 4,011 2,483 6 205 681 1,597 598 930 1934— Dec. 31. 10,028 4,312 179 195 1,124 ,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 ,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 ,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—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 4,181 100 977 3,105 823 823 June 30. 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 Oct. 2...11,880 5,127 (8) () (8) 6,752 4,091 (8) (8) (8) 907 897 856 COUNTRY BANKS 1929—Dec. 31..13,375 8,936 201 291 2,231 1,462 4,705 4,439 1,267 6 97 171 999 627 2,546 1933—June 30.. 7,873 4,275 35 25 1,117 1,055 2,005 3,598 1,469 664 299 1,106 581 1,549 1934—Dec. 31. 8,780 4,025 101 64 996 1,026 1,810 4,756 2,108 «13 562 1,533 355 741 1,552 1935—Dec. 31. 8,919 3,918 142 20 894 1,035 1,810 5,002 1,940 28 722 1,189 623 807 1,633 1936—Dec. 31. 9,825 4,078 187 29 843 1,123 1,881 5,747 2,368 17 689 1,662 645 883 1,851 1937— Dec. 31. 10,124 4,446 216 25 824 1,219 2,149 5,677 2,490 29 786 1,675 678 879 1,630 1938—Dec. 31. 10,113 4,444 1,531 138 25 243 1,353 1,149 5,669 2,636 11 732 1,893 597 982 1,453 1939—Mar. 29. 10,098 4,480 1,597 142 24 226 1,363 1,121 5,618 2,578 15 585 1,978 643 1,001 1,397 June 30_. 10,109 4,605 1,626 140 22 229 1,402 1,180 5,504 2,444 11 563 1,870 683 1,025 1,351 Oct. 2.. 10,102 4,665 (8) (8) (8) 5,437 2,383 C8) (8) (8) 699 1,058 1,297 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. Beginning June 30, 1939, detailed classifications available on June and December dates only. 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. 6 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 Not reported separately. 9 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

1107 DECEMBER 1939 FEDERAL RESERVE BULLETIN 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 Call date Fed- Cash with de- uals, and fied uals, and Boreral in do- posits part- polit- and U. S. part- polit- Postal row- ac- Re- vault mestic ad- ner- ical offi- Gov- ner- ical sav- For- counts serve banks justed ships, sub- cers' ern- sub- ings4 eign banks and divi- checks ment4 and divi- De- Time banks cor- sions etc.3 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 95 879 6,709 1933—June 30_. 2,235 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 3,149 15,686 14,951 1,799 838 1,636 9,020 294 452 4,S 134 154 13 5,054 1935—Dec. 31__ 5,573 665 3,776 18,801 18,035 2,139 882 844 9,680 361 218 161 449 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—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 7,097 142 607 5 5,496 Oct. 2___. 11, 617 774 65, 304 25,118 23,983 2,390 666 675 11,104 418 58, 243 6142 6757 5 5,530 NEW YORK CITY & 1929—Dec. 31._ 827 179 4,750 5,847 128 1,180 20 1,112 18 1,198 597 179 2,105 1933—June 30._ 846 101 4,358 4,676 96 461 332 671 110 1,255 128 1,582 1934—Dec. 31._ 1,576 103 5,069 5,370 229 540 792 591 56 1,798 133 1,565 1935—Dec. 31_. 2,541 111 6,193 6,479 323 524 224 591 2,338 414 1,573 1936—Dec. 31_. 2,658 133 6,929 7,274 285 457 225 679 2,493 397 12 1,585 1937—Dec. 31. _ 2,738 120 6,111 6,507 189 404 382 696 2,108 423 1,606 1938—Dec. 31_. 4,104 109 7,168 7,273 280 195 139 652 2,687 442 1,593 1939—Mar. 29.. 4,582 156 7,605 7,677 260 272 135 655 2,731 553 1,692 June 30— 4,975 112 8,012 8,281 288 472 84 653 2,992 524 1,586 Oct. 2.... 5,929 6109 8,676 8,812 321 349 72 683 63, 568 6670 1,587 CITY OF CHICAGO 6 1929—Dec. 31.. 133 957 1,041 42 310 33 316 1933—June 30.. 232 203 912 870 87 358 259 2 204 1934—Dec. 31__ 415 207 1,189 1,073 182 381 445 2 226 1935—Dec. 31_. 511 209 1,401 1,301 208 413 522 4 229 1936—Dec. 31_. 558 188 1,554 1,495 191 449 599 5 244 1937—Dec. 31__ 596 179 1,438 1,354 207 445 528 6 255 1938—Dec. 31__ 884 235 1,688 1,597 181 452 658 9 257 1939—Mar. 29.. 705 178 1,250 1,182 141 452 834 10 261 June 30__ 897 235 1,666 1,565 197 471 746 12 270 Oct. 2.... 6237 1,747 1,632 195 6853 614 270 RESERVE CITY BANKS 1929— Dec. 31_. 751 156 947 5,229 5,547 423 300 76 4,433 371 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. 31__ 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—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 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 Oct. 2.... 3,053 323 62, 485 8,017 7,803 801 158 410 4,319 83, 307 6116 871 1,821 COUNTRY BANKS 1929—Dec. 31_. 627 321 5,711 5,091 742 39 6,390 133 61 405 367 2,258 1933—June 30.. 452 203 702 3,054 2,576 555 72 116 3,833 86 285 228 7 167 1,517 1934—Dec. 31_. 822 275 1,296 4,292 3,589 804 106 178 4,554 84 210 342 16 13 1,650 1935—Dec. 31.. 927 305 1,676 5,047 4,254 901 127 137 4,879 136 415 16 6 1,687 1936—Dec. 31__ 1,247 319 1,929 6,039 5,177 1,011 167 178 5,275 69 483 16 3 1,750 1937—Dec. 31__ 1,361 307 1,645 5,968 5,143 959 149 78 5,504 158 61 412 21 12 1,775 1938—Dec. 31.. 1,353 322 1,956 6,224 5,215 1,128 154 143 5,509 147 44 446 23 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 5 1,818 June 30— 1,403 307 2,117 6,255 5,272 1,130 135 136 5,619 145 40 439 26 5 1,828 Oct. 2_... 1,555 329 «2,473 6,677 5,736 1,073 131 133 5,632 148 35 6515 626 4 1,852 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. 3 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. 6 Central reserve city banks. 6 Partly estimated. Back figures—See Annual Report for 1937 (tables 52-58). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1108 FEDERAL RESERVE BULLETIN DECEMBER 1939 CONDITION OF REPORTING MEMBER BANKS IN 101 LEADING CITIES [Monthly data are averages of Wednesday figures. In millions of dollars] Loans Investments Loans for U. S. Government obligations Com- purchasing Total mer- or carrying loans cial, securities Direct Date or Month m v a i e e n n s n d - t t - s Total t d a r i u i n n a s d - l - , p O m k a p p a e e r t e n - r br T o o k- e l R s o e t a a a n t l s e L ba o t n o a k n s s O lo t a h n e s r Total G a u n a - r- s O r e it t c i h u e e s - r a c g u r l i - - a e n r d s ot T h o ers Total Bills i Motes iBonds1 teed tural dealers TOTAL—101 CITIES 1938—October 21,323 8,282 3,904 346 576 1,163 109 1,515 ,041 8,084 1,682 3,275 1939—April 21, 727 8,127 3,848 305 697 537 1,144 69 1,527 .3,600 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 :3,602 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 3,793 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 .3,900 8,499 461 2,132 5,906 2,158 3,243 August. 22,327 8,179 3,930 313 642 521 1,171 62 1,540 14,148 8,537 488 2,149 5,900 2,265 3,346 September 22,384 8,322 4,166 316 568 511 1,178 38 1,545 4, 062 8,467 450 2,144 5,873 2,226 3,369 October 22, 571 8,421 4,279 317 552 505 1,181 35 1,552 .4,150 8,566 561 2,132 5,873 2,232 3,352 1939—Aug. 3O._ 22,442 8,209 3,996 317 519 1,174 49 1,546 .4,233 8,565 502 2,160 5,903 2,286 3,382 Sept. 6__ 22,389 8,305 4,075 314 640 512 1,174 46 1,544 A, 084 8,512 468 2,154 5,890 2,219 3,353 Sept. 13. 22, 389 8,315 4,159 318 568 513 1,178 34 1,545 A, 074 8,489 475 2,153 5,861 2,222 3,363 Sept. 20. 22, 339 8,319 4,201 315 532 510 1,180 35 1,546 4,020 8,428 437 2,131 5,860 2,230 3,362 Sept. 27. 22,419 8,350 4,229 316 533 510 1,180 35 1,547 A, 069 8,437 419 2,137 5,881 2,232 3,400 Oct. 4___ 22, 498 8,375 4,251 318 538 505 1,179 36 1,548 L4,123 8,503 492 2,130 5,881 2,240 3,380 Oct. 11_. 22, 568 8,408 4,288 318 530 504 1,182 37 1,549 4,160 8,559 553 2,128 5,878 2,240 3,361 Oct. 18... 22, 563 8,423 4,286 316 548 501 1,181 36 1,555 L4,140 8,574 571 2,126 5, 877 2,224 :, 342 Oct. 25__ 22, 657 8,479 4,292 318 593 510 1,180 32 1,554 L4,178 8,628 629 2,145 5,854 2,226 3,324 Nov. 1— 22, 728 8,521 4,310 317 603 512 1,184 36 1,559 14,207 8,684 667 2,159 5,858 2,232 3,291 Nov. 8... 22,835 8,521 4,330 316 594 500 1,184 37 1,560 14,314 8,720 702 2,169 5,849 2,250 3,344 Nov. 15.. 23,014 8,549 4,362 312 588 497 1,187 39 1,564 .4, 465 8,725 720 2,179 5,826 2,402 3,338 NEW YORK CITY 1938—October 7,809 2,935 1,447 142 528 197 119 413 4,874 2,902 803 1,169 1939—April 8,010 2,795 1,379 117 555 195 110 383 5,215 2,946 146 741 2,059 1,045 1,224 May 7,958 2,759 1,372 120 529 198 111 385 5,199 3,024 170 727 2,127 1,034 1,141 June 8,103 2,758 1,375 121 523 201 113 386 5,345 3,139 168 808 2,163 1,060 1,146 July 8,138 2,765 1,408 120 497 191 115 380 5,373 3,174 146 821 2,207 1,098 1,101 August. _ 8,349 2,828 1,483 117 493 184 117 382 5,521 3,197 205 826 2,166 1,137 1,187 September 8,393 2,869 1,620 116 435 177 117 377 5,524 3,196 233 801 2,162 1,105 1,223 October 8,538 2,895 1,661 115 430 173 116 375 5,643 3,314 358 788 2,168 1,123 1,206 1939—Aug. 30.. 8,379 2,856 1,545 120 467 183 118 384 5,523 3,155 194 825 2,136 1,147 1,221 Sept. 6__ 8,341 2,892 1,573 115 499 176 118 378 5,449 3,147 189 816 2,142 1,093 1,209 Sept. 13. 8,361 2,858 1,615 115 430 178 118 377 5,503 3,191 226 812 2,153 1,098 1,214 Sept. 20. 8,393 2,856 1,640 115 405 178 117 376 5,537 3,217 261 789 2,167 1,107 1,213 Sept. 27. 8,477 2,871 1,652 117 406 177 117 377 5,606 3,228 255 787 2,186 1,120 1,258 Oct. 4-_ 8,525 2,875 1,655 117 412 173 117 375 5,650 3,280 320 786 2,174 1,128 1,242 Oct. 11__ 8,508 2,881 1,665 116 411 171 117 374 5,627 3,285 342 776 2,167 1,125 1,217 Oct. 18__ 8,507 2,891 1,662 113 430 170 114 377 5,616 3,305 358 776 2,171 1,120 1,191 Oct 25__ 8,614 2,936 1,663 115 467 179 114 375 5,678 3,385 411 814 2,160 1,119 1,174 Nov 1... 8,679 2,955 1,672 117 472 180 114 376 5,724 3,458 462 835 2,161 1,121 1,145 Nov 8... 8,771 2,939 1,674 115 467 170 114 373 5,832 3,508 515 844 2,149 1,132 1,192 Nov 15.. 8,858 2,943 1,682 110 463 168 115 376 5,915 3,517 541 2,130 1,213 1,185 OUTSIDE NEW YORK CITY 1938—October 13, 514 5,347 2,457 204 141 379 1,044 1,102 8,167 5,182 879 2,106 1939-April 13,717 5,332 2,469 188 142 342 1,034 1,144 8,385 5,279 196 1,270 3,813 2,118 May ___ 13, 735 5,332 2,467 183 149 341 1,040 1, i38 8,403 5,272 228 1,306 3,738 2,132 June 13, 784 5,336 2,455 183 148 340 1,046 1,151 8,448 5,244 254 1,298 3,692 1,059 2,145 July _._. 13,908 5,381 2,480 192 151 341 1,048 1,159 8,527 5,325 315 1,311 3,699 1,060 2,142 August 13, 978 5,351 2,447 196 149 337 1,054 1,158 8,627 5,340 283 1,323 3,734 1,128 2,159 September 13, 991 5,453 2,546 200 133 334 1,061 1,168 8,538 5,271 217 1,343 3,711 1,121 2,146 October 14,033 5,526 2,618 202 122 332 1,065 1,177 8,507 5,252 203 1,344 3,705 1,109 2,146 1939—Aug. 30.. 14.063 5,353 2,451 197 141 336 1,056 1,162 8,710 5,410 308 1,335 3,767 1,139 2,161 Sept. 6... 14, 048 5,413 2,502 199 141 336 1,056 1,166 8,635 5,365 279 1,338 3,748 1,126 2,144 Sept. 13. 14,028 5,457 2,544 203 138 335 1,060 1,168 8,571 5,298 249 1,341 3,708 1,124 2,149 Sept. 20. 13, 946 5,463 2,561 200 127 332 1,063 1,170 5,211 176 1,342 1,123 2,149 Sept. 27. 13, 942 5,479 2,577 199 127 333 1,063 1,170 8,463 5,209 164 1,350 3,695 1,112 2,142 Oct. 4___. 13, 973 5,500 2,596 201 126 332 1,062 1,173 8,473 5,223 172 1,344 3,707 1,112 2,138 Oct. 11__. 14,060 5,527 2,623 202 119 333 1,065 1,175 8,533 5,274 211 1,352 3,711 1,115 2,144 Oct. 18... 14,056 5,532 2,624 203 118 331 1,067 1,178 8,524 5,269 213 1,350 3,706 1,104 2,151 Oct 25._ 14,043 5,543 2,629 203 126 331 1,066 1,179 8,500 5,243 218 1,331 3,694 1,107 2,150 Nov. 1... 14,049 5,566 2,638 200 131 332 1,070 1,183 8,483 5,226 205 1,324 3,697 1,111 2,146 Nov. 8... 14.064 5,582 2,656 201 127 330 1,070 1,187 8,482 5,212 187 1,325 3,700 1,118 2,152 Nov. 15.. 14,156 5,606 2,680 202 125 329 1,072 1,188 8,550 5,208 179 1,333 3,696 1,189 2,153 i Not reported separately prior to February 8, 1939. NOTE.—For description of figures see BULLETIN for November 1935 (pp. 711-738) or reprint, which may be obtained from the Division of Research and Statistics, and BULLETIN for June 1937 (pp. 530-531). For back figures see BULLETIN for November 1935 (pp. 711-738) or reprint, BULLETIN for December 1935 (p. 876), Annual Report for 1937 (tables 65-67) and corresponding tables in previous Annual Reports. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1109 DECEMBER 1939 FEDERAL RESERVE BULLETIN 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 a R e e r i n r e a t d v k h - l - e s v C a a i u s n l h t b m a w a d n e n i o c s t - k e h ti s s c j m p u o d a s a s d e t n e i - - t d d s s p p u v n h a c o a a i o e n i d r l r p r r d s a t - - - s - , - , S p s d s a i t i o u c i a o n v l b a t n d i e i - l t - s - s C : c h o f a e e e e i f n t e f r r c c i d t d s k . - i ' - s, m U G e e . r o n n v S - t - s . s p p u v n h a c o a a i e o n i d r l r p r r d s a t - - - s - , - , S p s d s a i t i o u c i a o n v l b a t n d i e i - l t s - - s P i s o n a g s 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 k n - s r B i o n o w g r s - - . co C i a u t a c a n p - l - t s tions tions TOTAL—101 CITIES 1938—October 7,005 425 2,446 15, 688 16, 563 5,152 6,012 110 479 3,663 1939—April 7,973 424 2,596 16,455 16,000 1,372 428 620 4,974 235 18 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 August 8,951 440 17, 71717,168 1,436 438 532 5,021 220 6,991 127 652 3,722 September- 9,643 477 2,951 18, 20917,904 1,331 448 528 5,016 210 7,447 126 732 3,716 October 9,957 482 3,062 8, 51118, 277 1,302 411 526 5,040 197 7,722 123 793 3,719 1939—Aug. 30.. 9,247 465 2,789 18,096 17,479 1,447 394 528 5,017 224 7,040 127 683 3,724 Sept. 6... 9,368 463 2,813 18,040 17, 599 1,366 512 528 5,016 215 7,219 127 712 3,726 Sept. 13.. 9,686 489 2,950 18, 28818,102 1,359 496 526 5,018 210 7,459 127 720 3,714 Sept. 20.. 9,723 470 3,021 18,175 17,926 1,266 391 528 5,013 207 7,566 126 742 3,712 Sept. 27.. 9,794 486 3,018 18, 33317,988 1,334 394 528 5,018 207 7,545 122 753 3,712 Oct. 4... 9,826 471 3,034 18,306 17, 926 1,328 392 528 5,028 203 7,711 123 762 3,714 Oct. 11.. 9,879 489 3,037 18,451 18,296 1,312 357 526 5,032 205 7,687 124 791 3,719 Oct. 18.. 10,028 480 3,087 18,567 18,433 1,248 440 525 5,043 190 7,760 123 797 3,720 Oct. 25... 10,094 487 3,090 18, 721 18,453 1,320 456 526 5,057 190 7,729 123 820 3,722 Nov. 1... 9,885 458 3,111 18, 55618, 273 1,460 510 525 5,063 181 7,832 122 727 3,728 ' Nov. 8... 9,852 500 3,089 18, 66018,184 1,481 415 523 5,067 178 7,829 123 721 3,733 Nov. 15.. 9,698 475 3,166 18, 60418, 520 1,431 407 521 5,070 182 7,997 122 711 3,731 NEW YORK CITY 1938—October 3,754 6,613 6,972 328 141 2,549 424 1,482 1939—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 August 5,184 7,905 7,913 304 274 51 597 3,052 575 1,482 September.. 5,631 8,152 8,268 249 278 49 601 3,300 657 1,475 Otb 5,701 8,259 8,394 240 240 49 615 3,381 702 1,475 1939—Aug.30 5,499 8,195 8,174 230 596 3,112 613 1,481 Sept. 6 __ 5,547 8,151 8,228 257 341 597 3,179 638 1,479 S S e e p p t t . . 1 2 3 0 .. __ 5 5, , 6 6 3 9 6 9 8 8 , , 1 0 9 9 5 1 8 8 , , 3 2 4 2 7 7 2 2 6 1 9 4 3 2 1 2 9 3 6 59 0 9 4 3 3, , 3 3 5 0 9 8 6 6 4 6 9 6 1 1 , , 4 4 7 7 5 3 Sept. 27 5,640 8,170 8,271 257 230 603 3,354 672 1,474 Oct.4 5,651 8,210 8,225 272 220 609 3, 675 1,476 Oct.11 5,667 8,214 8,377 239 198 611 3,372 698 1,475 Oct. 18 ._ 5,725 8,256 8,446 210 256 616 3,377 707 1,475 Oct.25 5,761 8,356 8,526 237 285 625 3,386 729 1,476 Nov 5,560 8,212 8,365 330 315 628 3,439 651 1,480 Nov,. 8 5,486 8,265 8,299 328 256 629 3,415 648 1,480 Nov. 15.... _._ 5,449 8,256 8,393 317 231 630 3,465 645 1,479 OUTSIDE NEW YORK CITY 1938—October.... . 3,251 364 2,370 9,075 694 165 422 4,531 3,463 110 2,181 1939—April 3,322 368 2,514 9,168 8,652 1,115 160 510 4,391 192 116 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 August 3,767 377 2,734 9,812 9,255 1,132 164 481 4,424 170 3,939 127 2,240 September 4,012 399 2,879 10,057 9,636 1,082 170 479 4,415 165 4,147 126 2,241 October 4,256 402 2,989 10, 252 9,883 1,062 171 477 4,425 156 4,341 122 2,244 1939—Aug. 30 3,748 394 2,717 9,901 9,305 1,139 164 480 4,421 173 3,928 127 2,243 Sept. 6 3,821 386 2,741 9,889 9,371 1,109 171 479 4,419 166 4,040 127 2,247 Sept. 13 3,987 410 2,878 10,093 9,755 1,090 177 478 4,414 167 4,151 127 2, 239 Sept. 20 4,087 394 2,947 10,084 9,699 1,052 168 479 4,414 164 4,207 126 2,230 Sept. 27 4,154 406 2,945 10,163 9,717 1,077 164 480 4,415 163 4,191 122 2,238 Oct. 4 4,175 393 2,960 10,096 9,701 1,056 172 479 4,419 158 4,322 123 2,238 Oct. 11 4,212 403 2,966 10, 237 1,073 159 477 4,421 159 4,315 123 2,244 Oct. 18 4,303 403 3,012 10,311 1,038 184 476 4,427 153 4,383 122 2,245 Oct. 25 4,333 409 3,018 10, 365 9,927 1,083 171 478 4,432 153 4,343 122 2,246 Nov. 1 4,325 384 3,039 10, 344 9,908 1,130 195 476 4,435 143 4,393 121 2,248 Nov. 8 4,366 415 3,018 10, 395 9,885 1,153 159 474 4,438 141 4,414 122 2,253 Nov. 15 4,249 399 3,086 10, 34810,127 1,114 176 473 4,440 142 4,532 121 2,252 1 Demand deposits other than interbank and U. S. Government, less cash items reported as in process of collection. * 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

1110 FEDERAL RESERVE BULLETIN DECEMBER 1939 CONDITION OF REPORTING MEMBER BANKS IN 101 LEADING CITIES—Continued [In millions of dollars] Loans Investments Loans for U.S. Government obligations Total Com- purchasing loans mer- or carrying Federal Reserve and cial, securities Direct distric (1 t 9 a 3 n 9) d date m v i e e n s n - t t - s Total t d a r i u i n n a s d - l - , p O m k a p p e a e r e t - n r br T o o k- 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 t a h n e s r Total G a u n a - r- s O i e t t c i h e u e s r r a c g u r l- i- a e n r d s ot T he o rs Total Bills Notes Bonds teed tural dealers BOSTON (6 cities) October 25 _____ _ - 1,193 602 287 64 23 21 81 1 125 591 415 19 56 340 45 131 November 1 1,192 605 287 65 26 21 81 1 124 587 412 19 55 338 45 130 November 8 1,192 605 289 63 24 21 81 1 126 587 412 20 55 337 44 131 November 15 1,192 604 291 63 22 21 81 1 125 588 414 22 56 336 50 124 NEW YORK (8 cities)* October 25 _ ._ _ 9,467 3,294 1,777 121 471 237 201 23 464 6,173 3,628 411 876 2,341 1,205 1,340 November 1 __ 9,530 3,312 1,786 123 476 237 201 24 465 6,218 3,699 462 894 2,343 1,208 1,311 November 8 9, 625 3,295 1,787 121 471 227 201 26 462 6,330 3,749 515 903 2,331 1 220 1 361 November 15 9,717 3,299 1,796 115 467 225 202 29 465 6,418 3,756 541 905 2,310 1,308 1,354 PHILADELPHIA (4 cities) October 25 1,150 423 198 26 19 31 55 1 93 727 362 38 324 92 273 November 1 1 153 423 198 25 20 31 55 1 93 730 362 38 324 94 274 November 8 1,157 425 198 25 21 31 55 1 94 732 362 38 324 95 275 November 15 1,163 426 199 25 21 31 55 1 94 737 364 39 325 99 274 CLEVELAND (10 cities) October 25 _ _ _ 1,884 678 258 6 20 25 172 2 195 1,206 810 12 211 587 115 281 November 1 1,881 677 253 6 20 26 173 3 196 1,204 809 9 211 589 116 279 November 8 1,888 677 253 6 20 26 173 3 196 1,211 814 10 212 592 118 279 November 15 1,902 679 254 6 20 26 174 2 197 1,223 818 11 213 594 126 279 RICHMOND (12 cities) October 25 685 259 116 13 3 15 39 73 427 312 4 181 127 48 67 November 1 688 260 117 13 2 15 39 1 73 428 313 4 182 127 48 67 November 8 691 261 117 14 3 15 39 73 430 314 4 184 126 49 67 November 15 698 260 117 14 2 15 39 73 438 317 4 186 127 55 66 ATLANTA (8 cities) October 25 _ 610 305 165 4 4 12 31 1 88 305 142 8 38 96 66 97 November 1 615 308 168 4 4 12 32 1 87 307 143 8 38 97 68 96 November 8 616 310 1 167 5 5 10 32 1 90 306 143 9 37 97 67 96 November 15 622 312 172 4 4 11 32 1 88 310 144 9 40 95 70 96 CHICAGO (12 cities)* October 25 3,155 880 515 34 31 76 109 115 2,275 1,500 133 437 930 287 488 November 1 3,148 884 519 33 31 77 109 115 2,264 1,490 127 434 929 288 486 November 8 3,142 896 534 33 28 77 109 115 2,246 1,467 106 433 928 292 487 November 15 3,155 904 539 34 30 76 110 115 2,251 1,450 92 432 926 309 492 ST. LOUIS (5 cities) October 25 697 332 200 8 4 13 52 3 52 365 201 8 54 139 65 99 November 1 _ _ _ _ 696 335 203 7 4 13 52 3 53 361 195 3 54 138 67 99 November 8 697 336 203 8 4 13 52 3 53 361 195 3 54 138 67 99 November 15 704 338 204 8 4 13 52 3 54 366 196 3 55 138 70 100 MINNEAPOLIS (8 cities) October 25 405 189 101 3 1 8 9 67 216 146 33 113 26 44 409 193 103 3 1 8 9 69 216 145 33 112 26 45 November 8 409 194 105 3 1 8 9 68 215 146 32 114 26 43 November 15 412 195 106 3 1 7 9 69 217 146 32 114 28 43 KANSAS CITY (12 cities) October 25 __ 660 284 174 17 3 9 26 1 54 376 193 11 87 95 52 131 November 1 665 286 175 16 3 10 26 1 55 379 195 13 83 99 52 132 November 8 669 287 176 16 3 10 26 1 55 382 198 13 84 101 52 132 November 15 _ 678 290 178 17 3 10 26 1 55 388 199 15 83 101 57 132 DALLAS (9 cities) October 25 534 270 180 2 2 14 22 50 264 155 23 50 82 52 57 November 1 538 273 182 2 2 14 22 51 265 157 22 53 82 50 58 November 8 537 274 183 2 2 14 22 51 263 155 22 53 80 50 58 November 15 541 275 184 2 2 14 22 51 266 156 23 54 79 52 58 SAN FRANCISCO (7 cities) October 25___ 2,216 963 321 20 12 49 383 178 1,253 764 84 680 173 316 November 1 2,213 965 319 20 14 48 385 1 178 1,248 764 84 680 170 314 November 8 2,212 961 318 20 12 48 385 1 177 1,251 765 84 681 170 316 November 15 2,230 967 322 21 12 48 385 1 178 1,263 765 84 681 178 320 CITY OF CHICAGO* October 25 2,090 558 379 19 28 66 14 52 1,532 1,048 129 250 669 154 330 November 1 2,086 561 383 18 27 67 14 52 1,525 1,040 123 250 667 156 329 November 8 _ 2,080 570 395 18 25 67 14 51 1,510 1,019 102 250 667 158 333 November 15 2,087 576 399 18 26 67 14 52 1,511 1,004 89 249 666 170 337 * 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

DECEMBER 1939 FEDERAL RESERVE BULLETIN 1111 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 with ances mand vid- States Certi- vid- States banks Cap- Federal Reserve Fed- Cash with de- uals, and fied uals, and Bor- ital distric ( t 1 9 a 3 n 9) d date b s e a R e r n r e a v - k l e s va in ult b m a d e n o s - k ti s c j p u o a s s t d e i - t d s 1 s p h n a c a o i e n r p r r d t - - s - , p s d s i i o u i c o v l b a n i - i l t - s - ch c a o e e e f t n f c c r d i . s k - ' s,m G U e e r . o n S n v . t - - 2 s p h n a c a o n i e r p r r d t - - s - , p s d s i i o u c i o v l b a n i - i l t s - - P in s o a g s v s t - a 2 l m D a e n - d Time b e F a i o n g r k n - s r i o n w gs - co a u c n - ts pora- porations tions BOSTON (6 cities) October 25 494 144 160 1,195 1,132 112 19 13 234 3 1 324 36 1 245 November 1 490 141 164 1,196 1,128 134 21 13 233 3 1 331 27 246 November 8. _ 484 144 168 1,201 1,116 134 17 13 233 3 1 329 24 1 246 November 15 458 143 173 1,180 1,128 115 24 13 233 3 1 333 19 1 246 NEW YORK (8 cities)* October 25 5,903 97 192 8,966 9,014 379 304 67 992 49 3,461 17 730 1 598 November 1 _ 5,692 92 199 8,830 8,861 479 336 67 995 47 3,514 17 653 1,602 November 8 5,622 106 201 8,905 8,794 494 273 68 997 45 3,490 17 649 1,603 November 15 5 579 95 214 8,893 8 888 485 250 67 998 48 3,543 17 647 1 602 PHILADELPHIA (4 cities) October 25 420 19 218 920 934 46 9 52 272 8 1 393 12 13 223 November 1__ _ 423 17 220 925 942 47 12 52 272 8 1 399 12 8 222 November 8 448 20 220 956 946 75 6 52 273 8 1 399 12 8 222 November 15 431 19 225 940 945 73 10 52 273 8 1 409 12 7 222 CLEVELAND (10 cities) October 25 . 519 46 354 1,304 1,252 119 17 42 710 19 2 400 39 1 373 November 1 535 43 357 1,314 1,277 120 19 42 711 18 2 402 39 1 374 November 8 520 46 352 1,312 1,263 120 15 42 710 18 2 394 39 1 374 November 15 512 45 362 1,310 1,297 115 18 42 711 18 2 411 39 2 374 RICHMOND (12 cities) October 25 187 23 211 485 483 41 10 28 198 3 295 6 1 97 November 1 __ 185 20 218 478 480 43 12 28 199 3 305 6 1 96 November 8 196 23 216 489 490 40 9 28 198 3 308 6 1 97 November 15 185 20 217 481 497 38 12 28 198 3 314 6 1 97 ATLANTA (8 cities) October 25 124 14 208 391 374 61 4 41 181 7 2 273 3 1 94 November 1 119 12 206 387 373 61 5 39 181 7 2 274 3 1 94 November 8 125 14 206 391 374 61 5 39 182 7 2 277 3 2 94 November 15 120 12 210 388 390 60 4 39 182 7 2 284 3 2 94 CHICAGO (12 cities)* October 25 ... 1,424 74 545 2,639 2,474 305 39 105 917 22 6 1,137 10 17 405 November 1 1,414 71 546 2,611 2,450 298 41 105 919 22 6 1,148 9 13 408 November 8 ._ 1,417 75 538 2,598 2,435 288 36 104 921 22 6 1,151 10 13 409 November 15 __ _1,386 74 552 2,585 2,501 279 34 104 922 22 6 1,186 9 12 408 ST. LOUIS (5 cities) October 25 214 12 184 476 500 31 6 18 188 3 2 336 6 95 November 1_ 220 11 187 474 493 32 7 18 188 3 2 345 6 95 November 8 231 13 189 485 498 33 6 17 188 3 2 350 6 1 95 November 15 224 11 190 479 511 34 6 17 188 3 2 356 6 95 MINNEAPOLIS (8 cities) October 25 97 7 109 303 270 57 7 1 119 1 142 3 1 59 November 1__ _ 99 6 117 308 269 64 7 2 119 1 147 3 1 59 November 8 101 7 120 309 271 60 6 2 119 1 152 3 1 59 November 15. ._ _ 97 7 116 307 279 60 6 1 119 1 150 3 1 59 KANSAS CITY (12 cities) October 25 196 16 344 541 530 65 10 22 142 3 1 418 7 102 November 1 189 14 336 532 524 66 10 22 142 3 1 415 7 102 November 8_ . . 186 16 331 527 522 60 10 22 142 3 1 417 7 102 November 15 __ 189 15 340 531 548 59 11 22 142 3 1 434 7 102 DALLAS (9 cities) October 25, . 134 12 271 464 452 42 10 30 128 8 261 86 November 1_ . _ 133 10 277 464 445 48 11 30 128 8 1 267 86 November 8 140 12 270 462 444 51 9 30 128 7 1 273 87 November 15 _ __ 135 11 285 469 464 48 9 30 128 8 279 87 SAN FRANCISCO (7 cities) October 25 382 23 294 1.037 1,038 62 21 107 976 65 289 20 20 345 November 1_ 386 21 284 L, 037 1,031 68 29 107 976 59 285 20 22 344 November 8 382 24 278 ,025 1,031 65 23 106 976 59 289 20 21 345 November 15 382 23 282 ,041 1,072 65 23 106 976 59 298 20 20 345 CITY OF CHICAGO* October 25 1,128 41 246 ,826 1,729 187 23 60 479 20 3 867 16 266 November 1 1,127 40 247 L, 818 1,720 183 23 60 480 20 3 871 12 269 November 8 1,133 42 242 L, 811 1,712 179 20 60 480 20 3 874 12 269 November 15 1,103 42 243 ],792 1,746 172 18 60 481 20 3 898 10 269 * 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

1112 FEDERAL RESERVE BULLETIN DECEMBER 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 a n a k c s cepting H R e e ld s er b v y e F b e a d n e k r s al sto B r a e s d e d in o o n r s g h o i o p d p s ed st o a u n t d - - st o a u n t d - - For ac- Held on o B n a s e e x d - Dollar between points in ing i ing Total O bi w ll n s bo B u il g ls ht o c w F o n u o n r a t c- c f s o o c p r o u o e r n n i r g t e d n o - - f ot b h y ers p U i i o n m . r to S ts . p U fr o . o r m S ts . ch e a x n - ge U.S. F c o o r u ei n g - n ents tries 1938—September 212 261 221 129 92 40 89 57 2 56 57 October _ 213 270 223 130 93 (2) 46 94 57 3 59 56 November 206 273 222 124 98 (2) 51 94 59 3 59 57 December 187 270 212 121 91 58 95 60 3 57 56 1939—January -- 195 255 204 122 82 52 89 57 2 52 55 February 195 248 198 122 76 50 87 57 2 48 54 March 191 245 191 117 74 54 87 58 2 42 56 April 192 238 189 118 72 49 86 56 1 38 57 May 189 247 192 124 68 55 82 51 19 36 59 June - - 181 245 191 122 69 53 81 45 20 39 60 July 194 236 188 119 69 48 75 41 19 39 61 August 201 235 191 128 63 (2) 44 79 40 18 40 59 September _ 209 216 177 115 62 39 78 40 18 43 36 October 205 221 179 111 67 42 85 40 18 46 32 i As reported by dealers; includes some finance company paper sold in open market. a 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' Other credit balances credit balances i Debit Debit End of month C b u a ( d s n l t e a e o b n t m ) i c t e e i s rs' a b in n p a a v d l c a a e c r n s t t o r n c t u m a e e n d s r e t i s s n n i ' n t g a i b n n a a v d l c a e c f n s i t o r r c t u m a m e n d s e t i s n n in t g C a b h a n a s a d n h n k d i o s n n r M o b w o o n e r d e - y 2 Free O (n th et e ) r m p i t a n e r r a v n t d I n e t n i s e n a t r - n g s d ' m t i r n e f a v n i I d r n e t m i s n a t g n - d a c c ( a c n p I o e n i u t t ) n al ts 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 96 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 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 32 106 190 754 247 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 August 792 22 71 202 556 235 58 20 6 275 September ___ __ __ _ 856 20 64 217 520 305 87 22 11 283 October _ 894 21 72 200 577 289 76 21 9 284 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 method 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

DECEMBER 1939 FEDERAL RESERVE BULLETIN 1113 FEDERAL RESERVE BANK DISCOUNT RATES [Per cent per annum] Rediscounts and advances under sections Advances secured by direct obligations 13 and 13a of the Federal Reserve Act of the United States (last paragraph of except last paragraph of Section 13 Advances under Sec- Section 13 of the Federal Reserve Act) tion 10 (b) of the Federal Reserve Act Secured by direct and Federal Reserve Bank eligible guaranteed ob- All other To banks To others ligations of the U.S. Rate In Rate In Rate In Rate In Rate In Nov. effect Nov. effect Nov. effect Nov. effect Nov. effect beginning- 28 beginning- 28 beginning- 28 beginning- 28 beginning- Boston Sept.1, 1939 Sept.1, 1939 Sept. 2, 1937 1 Sept. 1, 1939 Apr. 29, 1938 New York Aug.27, 1937 Aug.27, 1937 Oct. 10, 1935 1 Aug. 25, 1939 Feb. 8, 1934 Philadelphia.. Sept.4, 1937 Sept.4, 1937 Sept. 4, 1937 Sept. 1, 1939 Sept. 1, 1939 Cleveland May 11, 1935 May 11, 1935 Oct. 19, 1935 1 Wi Sept. 1, 1939 May 11, 1935 Richmond Aug.27, 1937 Aug.27, 1937 Sept.10, 1937 IK Sept. 1, 1939 Feb. 19, 1934 Atlanta Sept.16, 1939 VA Aug.21, 1937 Aug. 21, 1937 Sept.16, 1939 Apr. 23, 1938 Chicago 1 Sept. 1, 1939 VA Aug.21, 1937 Aug. 21, 1937 l Sept. 1, 1939 Oct. 16, 1933 St. Louis 1 Sept.21, 1939 IK Sept.2, 1937 Sept. 2, 1937 l Sept.16, 1939 Feb. 23, 1935 Minneapolis- IK Aug.24, 1937 VA Aug.24, 1937 Aug. 24, 1937 Sept. 1, 1939 Oct. 8, 1938 K D Sa a a n l n l s a F a s r s a n C ci i s t c y o - l I l K S S S e e e p p p t t t . . . 1 1 3 6 6 , , , 1 1 1 9 9 9 3 3 3 9 9 7 I I V K K A A S S e e u p p g t t . . . 3 3 3 1 , , , 1 1 1 9 9 9 3 3 3 7 7 7 A S S e e u p p g t t . . . 3 1 1 3 7 , , , 1 1 1 9 9 9 3 3 3 7 7 7 IK S S S e e e p p p t t t . . . 1 1 6 1 6 , , , 1 1 1 9 9 9 3 3 3 9 9 9 A A O p p ct r r . . . 1 1 1 6 6 9 , , , 1 1 1 9 9 9 3 3 3 3 8 8 i 2% per cent to lenders other than banks. NOTE.—Rates applicable to United States Government securities' repurchase agreements are as follows: New York, 1 per cent; Cleveland, Kansas City, and Dallas, VA per cent. 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, Nov- 28, 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] Maturity e R ff a ec te t i o n n In g i e n f n fe in c g t — be- Pre ra v t i e ous Advances to financ- Nov. 28 ing institutions— Advances direct to Commit- 1-15 days i__ Oct. 20, 1933 Federal Reserve Bank industrial On por- ments 4 1 3 6 6 1 - - - 3 6 4 0 0 5 d d d a a a y y y s s_ _ s _ _ .. _ _ . _ _ _ _ _ ._ . . d d d o o o ... m ga o e n r r i c z c i a o a t l m i o o - r n - s t i w i n o s h n t i i c f t o u h - r m O a n in i r n e g - a t d o v a m n a c k e e s 61-90 days... —do tion is portion 91-120 days.. ___do obligated 121-180 days. ___do _- Boston 3^-6 me i n T t h s, i s w r h a i t c e h a l a s g o r e a e p m pl e i n es ts to a r a e c a c l e w p a ta y n s c f e o s r b a o p u e g r h i t o d u n o d f e 1 r 5 r d ep ay u s r c o h r a l s e e s s a . gree- N Ph ew il a Y de o l r p k hia- 4 4 - - 6 6 0) 4-5 H 1 - - 2 2 NOTE.—Minimum buying rates at the Federal Reserve Bank of Cleveland New York on prime bankers' acceptances payable in dollars; higher rates may be charged for other classes of bills. The same minimum Richmond 4-6 4-6 1-2 rates apply to purchases, if any, made by other Federal Reserve banks. Atlanta 5-6 5 y Chicago 5-6 5-6 2 Back figures.—See Annual Report for 1937 (table 41). St. Louis 4 1-2 y Minneapolis.. 6 2 Kansas City— 4-6 4 H-2 Dallas 5-6 4 5-6 San Francisco 5-6 3-4 4-5 MAXIMUM RATES ON TIME DEPOSITS 1 Authorized rate 1 per cent above prevailing discount rate. Maximum rates that may be paid by member banks as established by 2 Same as to borrower but not less than 4 per cent. the Board of Governors under provisions of Regulation Q. 3 Flat charge. Back figures—See Annual Report for 1937 (table 40). [Per cent per annum] Nov. 1, 1933 Feb. 1, 1935 In effect MEMBER BANK RESERVE REQUIREMENTS 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 Classes of deposits 1917- 1936- 1937- 1937- 1938- Postal Savings deposits and banks Aug. 15, Feb. 28, Apr. 30, Apr. 15, and Other time deposits pay- 1936 1937 1937 1938 after able in: 6 months or more 90 days to 6 months On net demand Less than 90 days deposits: * Central reserve city. Reserve city 15 17K 17K NOTE.—Maximum rates that may be paid by insured nonmember Country 10K 12M 12 banks as established by the Federal Deposit Insurance Corporation, effective February 1, 1936, are the same as those in effect for member On time deposits: banks. In some States the maximum rates established by the Board All member banks__ and the Federal Deposit Insurance Corporation are superseded by lower maximum rates established by State authority. 1 See footnote to table on p. 1102 for explanation of method of computing net demand deposits. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1114 FEDERAL RESERVE BULLETIN DECEMBER 1939 MONEY RATES AND BOND YIELDS OPEN-MARKET RATES IN NEW YORK CITY COMMERCIAL LOAN RATES [Per cent per annum] AVERAGE OF RATES CHARGED CUSTOMERS BY BANKS IN PRINCIPAL CITIES Prevailing rate on- Average rate on- [Per cent per annum! Avermo Y w n e e t a h e r k , , or m m P 4 p c r o e o a t i r n o m e m c r t i h - , 6 e a s l a a b P c d n e a c r a 9 c r n i e y s 0 e m k p ' s s - t e , - c l S h t d o i t e a Qy a a m o x n O n y u c - e g s s k , e c S n h l c o t e r a e a o a e x a l w n l c - s - n l g k - e I i w f N U s e s o i r e u t . u f e h S w - e r d i . y s n b P i r d q l d r e l 9 e u e s a a 1 a s o s y - ' l - - - y T 3 i n U y e u r a - o e l . t e g r o d t a y a S e e - r s o 5 s . - n 1 19 9 3 3 5 4 a a v v e e r r a a g g e e 19 T c o 3 2 i t t . . a i 4 9 e l 5 3 s N Y C e o i 2 1 t w r y . . k 7 4 6 5 E e 7 N r c a n o i o s t t 3 r t i 3 a h e e t . . n h 3 7 e s r d n 9 - r 1 1 W e 1 r c e n S i s t o i t a e e 4 3 u n s r . . t 7 3 d n h 6 2 period1 tation 1936 average. 2.68 1.72 3.04 3.40 1937 average _.. 2.59 1.73 2.88 3.25 1938 average 2.53 1.69 2.75 3.26 1936 average___ .75 .15 1.16 .91 .143 .17 1.11 1937 average. .- .95 .43 1.25 1.00 .447 .28 1.40 1938—January 2.60 1.70 2.92 3.28 1938 average.__ .81 .44 1.25 1.00 .053 .07 .83 February 2.49 1.70 2.65 3.21 March 2.48 1.65 2.64 3.28 1938— N O o c v t. hA-zA 7 V /l6 ia 1 IX J4 1 1 . . 0 0 0 0 . .0 0 2 2 4 3 . . 0 0 4 5 . . 6 7 8 1 A M p a r y il 2 2 . . 4 4 8 8 1 1 . . 7 7 0 0 2 2 . . 6 6 4 0 3 3. . 2 2 0 5 Dec. 5A 7/l6 134 1.00 .007 .03 .67 J J u u n ly e ... _ 2 2 . . 5 5 6 7 1 1 . . 7 7 0 0 2 2 . . 7 7 8 8 3 3 . . 3 3 5 1 1939—Jan. y2-% Via i1^ 1.00 .002 .03 .65 August 2.52 1.67 2.71 3.28 Feb VT-Y% Vi« IX 1.00 .004 .03 .63 September 2.53 1.70 2.74 3.26 Mar lA-bA Via IX 1.00 .005 .03 .51 October 2.57 1.70 2.90 3.21 April Vie IX 1.00 .019 .03 .50 November 2.49 1.70 2.68 3.20 May VL-*A Vie 1M 1.00 .006 .03 .42 December 2.60 1.70 2.95 3.63 June Vie IX 1.00 .006 .03 .39 July Vie IX 1.00 .017 .04 .45 1939—January 2.64 1.73 2.97 3.32 Aug Vie IX 1.00 .046 .05 .48 February 2.52 1.70 2.69 3.36 Sept Vs-H Vie IX 1.00 .102 .14 1.07 Oct 5A-H Vie IX 1.00 .028 .05 .77 Quarterly Figures: 1938—September 2.65 2.00 2.75 3.25 Week ending: Oct. 28.... Vsr3A Vie IX 1.00 .028 .05 .65 1939—March.. _ 2.95 2.13 3.05 3.77 Nov. 4 5A-Z4 Vie IX 1.00 .017 .05 .69 June 2.91 2.15 3.05 3.62 Nov. 11.... 5A-H Vie IX 1.00 .020 .05 .68 September 2.68 2.04 2.78 3.31 Nov. 18_— % Vie IK 1.00 .018 .05 .63 i Quarterly figures are on revised basis and are therefore not strictly i Series comprises 273-day bills to October 15, 1937, bills maturing comparable with the series of annual and monthly figures. For figures about March 16, 1938, from October 22, to December 10,1937, and 91-day beginning January 1928 and description of figures see pp. 963-969 bills thereafter. of the November 1939 BULLETIN. Back figures.—See Annual Report for 1937 (tables 43 and 44). Figures for 91-day Treasury bills available on request. BOND YIELDS1 [Per cent per annum] Corporate4 Year, month, or week T U r . e a S s . - M ip u a n l i 3 c- By ratings By groups ury 2 Total Aaa Aa A Baa in tr d i u al s- K ro a a n d - u P t 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—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 August 2.21 2.75 3.67 2.93 3.11 3.80 4.85 3.21 4.41 3.40 September _ _ 2.65 3.29 3.95 3.25 3.49 4.05 5.00 3.57 4.58 3.70 October 2.60 3.08 3.83 3.15 3.35 3.94 4.88 3.43 4.51 3.57 Week ending: Oct. 28 2.51 2.85 3.77 3.09 3.27 3.88 4.84 3.34 4.46 3.51 Nov. 4 2.52 2.82 3.75 3.07 3.23 3.85 4.83 3.31 4.46 3.47 Nov 11 2.51 2.74 3.71 3.01 3.19 3.81 4.85 3.26 4.46 3.43 Nov. 18 2.47 2.68 3.70 2.99 3.15 3.78 4.87 3.24 4.45 3.41 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. Figure for week ending October 21 should be revised to 2.54. 3 Standard Statistics Co. * 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

DECEMBER 1939 FEDERAL RESERVE BULLETIN 1115 BOND PRICES1 STOCK MARKET Corporate 3 Stock prices 1 Year, month, or date T U u r r . e y a S s 2 . - M ip u a n l i 3 c- Total In tr d ia u l s- R ro a a i d l- Utility Year, d m a o te nth, or Pre- Common (index, 1926=100) u t m V ra o e d l- - of ferred 2 ing 3 Indus- Rail- Number of issues 2-6 15 60 20 20 Total trial road Utility 1936 average 103. 7 110.8 97.5 92.2 94.7 105.4 1937 average. 101.7 110.3 93.4 90.1 89.6 100.4 Number of issues __ 20 420 348 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—October 104.3 115.2 81.8 86.8 59.9 1937 average 136.2 112 131 95 1,519 November 104.0 116.6 82.1 86.9 60.2 99.3 1938 average 135.6 83 99 73 1,100 December ._ 104.1 116.5 81.1 86.0 58.6 98.7 1939—January 104.4 117.3 81.9 86.2 59.7 99.7 1938—October 140.4 91 110 77 1,889 February ___ 104.8 117.3 82.1 86.4 59.0 100.7 November. __ 142.3 95 114 81 1,355 March 106.0 117.9 83.1 87.1 60.9 101.3 December 141.7 92 111 78 1,195 April 106.6 116.4 79.4 83.8 54.5 99.7 1939—January 141.7 92 109 81 1,114 May 108.3 118.1 80.2 84.8 54.8 101.0 February 141.8 90 106 84 708 June 109.1 118.6 81.4 86.2 56.2 101.6 March 142.3 92 108 86 999 July 108.9 118.3 81.6 86.3 56.4 102.1 April 140.4 82 96 80 964 August 108.2 116.5 81.0 85.8 55.5 101.7 May 141.8 83 97 82 548 September 101.9 107.1 80.9 85.0 59.0 98.6 June 143.9 86 101 85 507 October 102.6 110.7 82.9 86.4 61.6 100.5 July 143.7 86 101 85 821 August 142.3 86 101 87 706 Oct. 25 104.2 114.6 83.4 87.1 61.9 101.1 September. __ 136.2 92 109 84 2,595 Nov. 1 104.0 115.1 83.0 87.0 60.5 101.5 October 137. 7 95 113 86 1,050 Nov. 8 103.9 116.6 83.2 87.0 60.7 101.8 Nov. 15 104.4 117.7 83.1 87.1 60.2 101.9 Oct. 25 139.4 97 115 88 1,306 Nov. 1 139.7 95 112 87 1,209 Nov. 8 139.9 94 111 87 1,157 i Monthly data are averages of daily figures except for municipal bonds, Nov. 15 140.3 94 110 87 729 which are averages of Wednesday figures. a 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 n figures. decimals. 2 Average prices of industrial high-grade preferred stocks, adjusted to a 3 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 week ending Saturday. bonds, see pp. 1045-1046 of BULLETIN for December 1938. Back figures—Fov stock prices,'see Annual Report for 1937 (table 79). CAPITAL ISSUES [In millions of dollars] ]?or new capital For refunding Total Domestic Domestic Year or ( a n n e d w Total Total month fu i r n n e g - d ) - m e (( a f r i e , o \ g n dr s \ r d n o - t ) i - c Total S n m a p t i n a c a u d t i l - e - a c F e i g e e r e a s d n l - » - Total Co B n r a p o o n o t n d e r d s a s te Stocks e F ig o n r - * m e a ( f i e d o g n s o r d n - t - ) ic Total S n m a p t i n a a c u d l t i - e - a c F e g ie e r e a s d n l - 2 - Total Co B n r a o p o n t o n d e r d s a s te Stocks e F ig o n r- ^ 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 0 474 461 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 '4,446 2,359 2,323 971 481 872 807 65 35 '2,087 '2,060 129 665 '1, 265 '1, 234 31 28 1938—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 25 Dec '514 241 241 126 55 60 44 16 0 '273 '271 15 20 '235 '225 11 3 1939—Jan 257 200 200 76 118 6 5 1 0 57 57 27 19 10 10 (') 0 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 Apr '357 '144 '143 63 2 '78 '48 31 (*) 213 161 11 21 129 106 23 53 May '1, 313 117 117 94 2 '22 18 3 0 1,195 1,180 7 1,021 151 131 20 16 June 605 293 283 253 0 30 22 9 10 312 312 39 21 252 249 2 0 July '590 318 318 66 203 '50 40 '10 0 '272 '272 18 74 '180 '143 '38 0 Aug '450 '103 '83 57 0 '26 '23 3 20 '347 '332 13 18 '301 '292 9 15 Sept 174 41 41 15 10 16 14 2 0 133 133 8 51 74 74 0 0 Oct 740 336 336 42 276 18 14 4 0 404 402 10 235 157 157 2 * Revised. i Includes issues of noncontiguous U. S. Territories and Possessions. i Includes publicly-offered issues of Federal credit agencies, but excludes direct obligations of U. S. Treasury. « 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

1116 FEDERAL RESERVE BULLETIN DECEMBER 1939 TREASURY FINANCE UNITED STATES GOVERNMENT DEBT VOLUME AND KIND OF DIRECT OBLIGATIONS [On basis of daily statements of United States Treasury. In millions of dollars] Noninterest- Interest-bearing bearing Total ]Publicly-offered» End of month g d r e o b s t s Total Bonds s j e u A r s v t d e i - c d e c S u o s r e c i - i t a y l ot A h l e l rs t M ure a d - Other interest Total Notes Bills issues3 issues4 J.VJ. bearing Pre- Treas- U. S. war ury* savings 1932—June 19,487 19,161 618,816 753 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 r626,006 753 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—October 38, 423 37,897 34, 527 79 22, 712 1.367 9,067 1,302 826 1,807 736 94 433 November . _. 38,603 38,068 34, 559 79 22,712 L,399 9,067 1,303 827 1,937 745 105 431 December 39,427 38,899 35, 327 79 24,005 ,442 8,496 1,306 827 2,002 743 101 427 1939—January . 39, 631 39,097 35,469 79 24,005 L, 580 8,496 1,309 826 2,046 756 109 425 February 39, 859 39,326 35, 533 79 24,005 L, 643 8,496 1,310 825 2,207 761 112 421 March 39,985 39,442 35, 579 79 25, 218 L, 701 7,270 1,311 827 2,257 779 125 419 April 40,063 39, 525 35, 627 79 25, 218 L 751 7,270 1,309 826 2,294 780 122 416 May 40,282 39, 751 35,680 79 25, 218 l', 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 August _ 40, 891 40, 351 35,862 79 25, 218 2,015 7,243 1,307 829 2,722 938 133 406 September 40, 858 40, 342 35,886 79 25, 218 2,051 7,232 1,306 795 2,746 915 112 404 October _ _ _41, 036 40, 526 36,026 79 25, 218 2,092 7,232 1,405 791 2,796 913 109 401 1 Excludes postal savings bonds, formerly sold to depositors in the Postal Savings System. 2 Includes Liberty bonds. * 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. * Includes special issues to old-age reserve account, unemployment trust fund, and railroad retirement account. * Includes postal savings bonds and special issues to retirement funds, to Postal Savings System and to Federal Deposit Insurance Corporation. * 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, OCTOBER 31,1939 FULLY GUARANTEED OBLIGATIONS, BY AGENCIES i [In millions of dollars] [In millions of dollars] Maturing Federal Home Recon- Com- U. S. Date maturing Bonds B c o a n ll d - s M En o d n t o h f Total M C F o o r a r p t r g o m a ra g - e C O o L w r o p n a o e n r r a s - ' s C F tr o i u n r c p a t n o io c ra e n - C m C o o r r p e d d o it r i y t a- A H u i o t n h u g o s- ror callable able * tion tion 2 tion tion ity Total Bills Notes 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 Dec— 4,494 1,387 2,855 252 1 19 9 4 3 0 9 — — J N a o n v . . 1 1 - - M D a e r c . . 3 3 1 1 1 1 , , 4 8 3 8 0 0 9 5 0 0 4 1 1,3 5 7 2 8 6 1 1 936— D Ju e n c e .. . . . 4 4 , , 7 6 1 6 8 2 1 1 , , 4 4 2 2 2 2 3 2 , , 0 9 4 8 4 8 2 2 5 5 2 2 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—Oct... 5,001 1,395 2,888 511 206 1943 _ 1,948 1,050 898 1,855 Nov. _ 4,993 1.388 2,888 511 206 1944 416 416 2,555 Dec... 4,992 ,388 2,888 509 206 1945 2,118 176 1,941 1,755 1939—Jan. _. 4,987 ,383 2,888 509 206 1946 1,841 323 1, 519 2,372 Feb... 5,410 ,381 2,888 819 206 U4 1947 2,820 422 2,399 1,460 Mar. _ 5,410 1,381 2,888 819 206 114 1948 1,997 510 1,487 1,674 Apr... 5,410 ,380 2,888 819 206 114 1949. _ 1,481 2 662 819 2,278 May.. 5,409 ,379 2,888 820 206 114 1950 1,186 June.. 5,450 .379 2,928 820 206 114 1951 1,223 1,223 2,382 July.. 5,480 1,379 2,958 820 206 114 1952 2,436 2,436 Aug... 5,583 1,379 2,858 820 409 114 1953 1,786 1,786 Sept. _ 5, 456 1,279 2,831 820 409 114 1954 2,663 2,663 Oct.._ 5,448 1,279 2,823 820 409 114 1955 755 755 2,611 1956 489 489 982 1958 919 i 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 1961 50 50 50 Housing Administrator, amounting to $2,933,000 on October 31, 1939. 1963 919 919 2 Excludes obligations guaranteed as to interest only. For August 1939 1965 1,485 1,485 and subsequent months includes matured bonds not presented for retirement amounting to $92,000,000 on October 31. Total 36,026 1,405 7, 232 2,092 25, 297 25, 297 i 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

1117 DECEMBER 1939 FEDERAL RESERVE BULLETIN SUMMARY OF TREASURY OPERATIONS [On basis of daily statements of United States Treasury. In millions of dollars] General and special accounts Receipts Expenditures * 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, period General Excess etc7 of re- excess Period ceipts of re- Total c ta o I x n m e - s e t s S a e o i x c t c e y u i s a r - l 2 O i r n n e n u t t v a h e e e l e r * - - r o A th l e l r Total I e d s n t e t e b o r t n - t f i V a N e d o n n e e n a - d s t - a - e l o A th l e l r r c a e R e o l n r e i v y d e - - f f ( v n u R i o e n n e l t g d - v ) s - e a T f e t e c t r r r c c u a s . t n s s t t 6 s . o , - p ( t + e u ( e n - ) r x e o ) d - s i r - p ( c t + e u ( e e n i ) - r x p e ) d - o t s i s r - G ba f e u l n a n n e d c ra e l 7 G d r e o b s t serans' Adm.4 Fiscal year ending: 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 4 months ending: Oct. 1937 1,983 634 216 897 237 2,518 260 507 703 696 56 296 -534 +125 +122 +532 Oct. 1938 1,841 618 200 847 176 2,965 243 546 910 958 37 271 -1,124 +219 +353 +1, 258 Oct. 1939 1,768 445 217 916 190 3,177 253 632 26 336 -1,409 -112 -925 +597 1938—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 +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 ••145 ••259 220 1 167 -499 -113 -391 +222 August 420 37 119 218 46 822 18 '152 '254 321 11 66 -402 -44 -216 +230 September. __ 719 328 27 312 52 784 151 '147 '261 170 5 50 -65 +46 -53 -34 October 322 37 36 199 50 764 68 154 305 175 9 53 -442 -1 -264 +178 Details of trust accounts, etc. Details of general fund balance (end of period) Period Ol m d ra -a e il g n r e o t a r a d e c s c e r o e rv u ti e n r e t a s - nd Un t e r m us p t lo f y un m d ent G c N h o e e v t c e k e r i x n n p m g e e n a n d c t c i t o a u u g r n e es n ts c i i o n e f s e o o x t A f c h e l r e l e s r s - , In- c I r n e- - Workce R i e p - ts m v I e e n s n - t t - s m B p e f e a n i n y t e t - 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 i c p c o a o t o n n i n r c o a - e n - C m C o C t o r r i o p e d o m d o n it i r - y t a- o A th l e l r d ( e c + i x e t ) p i u p e r o t n e s s - r Total a g c o t l iv d e m g o o e n l n d t S io e r i a g g n e - Fiscal year ending: June 1937 _ 267 267 () 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 4 months ending: Oct. 1937 223 194 190 183 1 9 54 36 +20 2,676 1,271 141 875 Oct. 1938 196 143 240 64 168 9 207 91 9 43 +36 2,569 142 467 1,960 Oct. 1939 234 182 279 103 146 83 9 56 170 +43 1,913 143 558 1,213 1938—October 44 34 40 19 23 96 +19 2,569 142 467 1,960 November. _ 49 34 125 26 21 18 9 11 +13 2,447 142 478 1,828 December... 49 34 37 32 19 18 16 94 +8 3,084 142 492 2,449 1939—January 39 34 51 10 33 9 15 10 9 20 +2 2,933 142 503 2,288 February... 50 50 148 111 36 9 326 (8) 9 112 -1 3,343 142 508 2,693 A J M M u p a a n r y r e i c l h 6 8 5 5 8 5 5 0 4 5 5 8 0 0 0 3 1 3 3 3 3 4 4 7 2 9 9 1 0 1 1 8 3 3 4 4 3 4 4 1 2 1 9 9 9 8 6 6 3 6 0 94 2 5 9 9 9 1 3 2 2 2 7 7 + + + + 1 2 1 4 3 1 11 3 3 2 2 , , , , 3 0 9 8 8 4 2 3 9 4 4 8 1 1 1 1 4 4 4 4 2 2 2 2 5 5 5 5 2 1 3 2 2 5 6 8 2 2 2 2 , , , , 3 7 2 1 8 3 5 6 0 2 4 0 July 65 45 58 9 14 42 16 144 +13 2,447 142 544 1,761 August 66 51 154 129 41 29 96 +5 2,231 142 549 1,539 September. _ 50 43 13 9 19 40 22 9 74 +10 2,178 142 554 1,481 October 53 43 54 7 24 15 4 + 15 1,913 143 558 1,213 1 Excludes debt retirements. T Revised. 2 Includes taxes under Social Security Act and on carriers and their employees. 3 Includes miscellaneous internal revenue, unjust enrichment tax, and processing taxes. 4 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." '' Details given in lower section of table. 8 Less than $5C0,000. 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

1118 FEDERAL RESERVE BULLETIN DECEMBER 1939 GOVERNMENTAL CORPORATIONS AND CREDIT AGENCIES, SEPTEMBER 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 s i m ng o r a tg g a e g n e c i a es nd Farm credit agencies Ten- Total F A i C W P s r i a t d a n u o r t o m n a a b r i r p o d n t l i k i i o n c n o c s - e - 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 n a o i u u t t r g e e i - s t s d - y m F a g c g a a o i e r e g r m n s e t - - a C b n A O F d a r a d t e n h r m d c m k e o i s r . t r- m C C r C a o r o o t e r i d m p o d i o n i t - t y - Other t V n A h l s i e e t e o a u y s y e l r - - - - a a s c I g n u i n e e c r - s - n e - Other S 1 3 9 e 0 3 p , 9 t. A 1 3 9 u 1 3 g , 9 . S 1 3 9 e 0 3 p , 8 t. porations ASSETS Loans and preferred stock: Loans to financial institutions . 210 164 0) 56 430 428 470 Preferred stock, etc 515 211 40 76 0) 842 844 859 Loans to railroads 462 30 492 492 495 Home and housing mortgage loans 2,055 188 104 2,347 2,337 2,335 Farm mortgage loans 2,626 2,626 2,637 2,776 Other agricultural loans 21 281 617 199 0) 1,118 1,128 723 All other loans 2 462 (0 3 324 4 282 1,068 1,033 837 Total loans and preferred stock 1,670 2,266 392 104 2,626 356 617 524 56 312 8,923 8,900 8,496 Cash 2 65 39 21 66 53 1 24 14 37 14 336 418 329 U. S. Govt. direct obligations 48 37 2 78 171 399 4 738 735 684 Obligations of Government credit agencies: Fully guaranteed by U. S. 13 21 107 141 141 159 Other 6 8 t(i) 33 41 45 40 Accounts and other receivables 24 9 6 1 210 7 77 0) 6 61 43 446 450 372 Business property 0) 4 0) 130 6 0) 1 292 1 101 535 531 447 Property held for sale 36 536 0) 119 0) 3 1 695 704 667 Other assets 2 6 0) 0) 8 0) 0) 5 1 8 81 111 95 125 Total assets other than interagency 6 . 1,790 2,885 488 257 3,114 642 697 553 313 671 557 11, 96712,01711,319 LIABILITIES Bonds, notes, and debentures: Guaranteed by United States... 820 2,731 114 1,279 409 3 5,356 5,489 5,010 Other 6 (0 134 s 1,000 205 8 1 9 1,357 1,345 1,365 Other liabilities (including reserves). 148 107 36 8 105 11 188 183 8 204 56 1,054 1,052 737 Total liabilities other than interagency 6 967 2,839 169 122 2,385 216 597 183 16 208 65 7,768 7,886 7,112 Excess of assets over liabilities, excluding interagency transactions. . 823 46 319 135 729 426 100 370 297 463 492 4,19*9 4,131 4,207 Privately owned interests 50 200 4 139 393 391 377 U. S. Government interests 823 46 269 135 528 422 100 370 297 324 492 3,806 3,739 3,830 i Less than $500,000. * Includes $63,000,000 loans of Public Works Administration. 3 Includes $257,000,000 loans of Farm Security Administration. * Includes $158,000,000 loans of Rural Electrification Administration. * Excludes Federal land bank bonds held by Federal Farm Mortgage Corporation. 6 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] Oct. 31, Apr. 3C May 31, June 30, July 31, Aug. 31, Sept. 30, Oct. 31, 1938 1939 1939 1939 1939 1939 1939 1939 Loans to financial institutions 216,157 193,967 190,447 183, 943 181, 502 178, 833 177,011 175, 795 Loans on preferred stock of banks and insurance companies.. 37,090 33, 583 33, 494 33, 444 33, 349 33,181 33,162 33,127 Preferred stock, capital notes, and debentures 521,981 528,024 528, 573 529, 270 526,876 517,125 515,157 513, 200 Loans to railroads (including receivers) 426,046 443,840 436,612 439,199 438,863 438,837 438,835 436, 650 Loans for self-liquidating projects 194, 606 111,391 113,450 44, 683 68,106 73,844 85, 264 89, 872 Loans to industrial and commercial businesses 98, 224 112, 531 114,498 117,079 121,804 123,042 125,753 126, 863 Loans to drainage, levee, and irrigation districts 79, 667 83,084 83,109 83,358 83,462 83, 502 83, 482 Other loans 19, 205 27,129 28, 640 27,393 25,196 23,812 23, 847 23, 274 Securities purchased from Public Works Administration 138, 783 130,313 128,865 116, 577 119, 705 122,986 124, 476 126, 649 Total loans and investments, other than interagency.. 1, 731, 7601, 663, 7441, 657, 6631,574,697 1, 598, 7591, 595,1211,607,006 1, 608, 911 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 56,698 61,148 146,498 146,498 146, 498 146, 498 146, 498 Capital stock of, and loans to R. F. C. Mortgage Co 44,996 55,066 55, 625 57,094 55, 219 54,903 54,629 55,102 Capital stock of, and loans to Fed. Natl. Mtge. Assn 31, 975 29,398 33, 796 37,996 41, 776 44,438 46,500 50, 323 Loans to Tennessee Valley Authority 2,000 3,000 3,000 8,300 8,300 8,300 8,300 Total loans and investments 1,877,228 1,852,906 1,856,232 1,869,585 1,895,551 1,894, 260 1,907, 932 1, 914,133 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

FEDERAL RESERVE BULLETIN 1119 DECEMBER 1939 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— End of month la F nd e d b e a ra n l ks C s o B L i m o a a n n n m e d k r is- p c s p c R r o r c o r o e c e u e r a d d i g a d l a g u i t t i i t t u r i o c t i i o r o n t - c a a n i n o a o s l s s l r - n , - , f c i i e n o n O t x i a o s o t n c t p h n i e c e t e s p i u r n r , a t - g - ti P a o s r t n s i o o o d c n c u r i s e a c d - - it t R u i a t r r e g a a c g t r l o i i i o c o r c p u n n r o l e s a - d - l - c d r E g r l o o o e m p a n u e n c g a r s y n h - d t m F b c i e e n r a d d e t n e e d i k a r r i - s a t te l B in C c a a c o t e n l i o u n k v p d t s e e r i s a r f n , - o l g r M A i r n e t g g a u v r r r o i k c A a l e u l v c t l - t - and banks tives Bank ing fund for cooperatives i 1934—December. 1,915, 792 616, 825 99, 675 55, 672 60,852 87,102 111, 182 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—October. __ 1, 997, 561 766, 502 174, 626 36,121 154, 560 12,354 174, 574 744 86, 931 27,917 November. 1, 990, 475 760, 326 166, 549 34, 537 148, 430 11, 592 172,043 851 86, 221 25,313 December. 1, 982, 224 752, 851 168, 392 33, 545 148,037 11,081 170,891 920 87, 496 23, 723 1939—January. _. 1,973,179 745, 631 163,815 33,077 148,416 10,863 169, 707 834 23,948 February.. 1,968, 790 740, 870 166, 996 34,115 155,409 10, 689 170,400 1,152 73, 692 23, 631 March 1, 960, 357 733, 647 175, 362 35, 318 167,867 10, 399 175, 509 1,528 65, 783 23, 305 April 1, 954, 677 182, 643 36, 483 177, 792 10, 298 179,156 1,256 61, 363 23,190 May 1, 947,944 723,187 186, 588 38,124 183, 351 10, 286 179,834 596 60,465 23,061 June 1,940, 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 August 1, 928,166 708,426 187, 968 41, 661 185, 215 9,599 177, 668 127 61,404 22,422 September 1, 922, 577 703,840 179, 674 37, 645 174,032 9,127 175,060 778 65,160 21, 663 October 1, 916,431 699, 274 169, 731 33, 996 162, 703 8,351 171,211 1,493 70,422 21, 582 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 L p O o H o a w r n o a n m t C e io r e o s n r ' - N o l u f o m a a n s b s o e a r - ssoc L ia o ti a o n n s s i m l i o t n b i e a o s a m n t n n i s s b t k u t e 2 o - r an ba c l e - si Total b i p n t a o o n r s d k y i e - s - Total o r D e b i c - li t - G o t a g e u b n e a a l - d - i r - - f s e u e r t n e r c - v d .2 e s, ciations tions 1934—December _ 2,379,491 81, 300 86, 651 1935—June.. 1,205 1,236 385 777 630 147 74 1935—December. 2,897,162 1,023 348, 000 102, 791 1936—June. . 1,232 1,265 203 967 800 167 95 1936— December. 2, 765,098 1,212 586, 700 145, 394 1937—June_. 1,268 1,307 136 1,100 933 167 71 1937—December . 2, 397, 647 1,328 853, 500 200,092 1938—June.. 1,252 1,290 115 1,103 936 167 72 1938—October. __ 2, 203,896 1,370 1, 011,087 189, 217 1938—September 1,248 1,287 1,118 952 166 71 November. 2,186,170 1,374 1, 020,873 189, 685 October 1,250 1,289 1,118 952 166 75 December. 2,168,920 1,368 1,034,162 198, 840 November 1,250 1,291 1,128 961 167 76 1939—January... 2,149, 038 1,370 1,040, 770 178, 852 December 1,252 1,291 1,132 965 167 73 February.. 2,134, 261 1,375 1, 051,109 170, 614 1939—January 1,259 1,299 1,137 971 166 79 March 2,117, 598 1,375 1, 067, 887 161, 614 February _____ 1,263 1,304 1,144 978 166 79 April 2,105, 824 1,381 1,089,879 157,176 March 1,266 1,309 1,153 167 76 May 2,091, 324 1,383 1,117, 228 157, 911 April 1,264 1,306 1,154 166 76 June 2,080, 512 1,386 1,136, 289 168, 962 May 1,261 1,305 1,157 1,011 146 75 July 2,067, 844 1,385 1,157, 536 161, 537 June 1,262 1,304 1,157 1,011 146 79 August 2, 059, 792 1,392 1,186, 784 159, 470 July 1,268 1,310 1,172 1,026 146 80 September. 2,054, 865 1,394 1, 206,887 163, 687 August 1,271 1,314 1,174 1,028 146 84 October __. 2,049, 421 1,394 1, 231, 685 168, 654 September l 267 October , 270 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

1120 FEDERAL RESERVE BULLETIN DECEMBER 1939 PRODUCTION, EMPLOYMENT, AND TRADE [Index numbers; 1923-25 ayerage=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 U 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 justedjustedjusted justedjusted 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 56 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 87 142 306 110 107 111 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 50 91 74 64 79 1936 105 105 105 55 37 70 99 86 75 88 1937 110 109 116 59 41 74 109 103 78 92 1938 86 84 98 64 45 80 90 78 62 85 1936 Sept 109 108 110 107 102 110 59 60 47 47 69 70 102 104 87 75 84 88 94 Oct 110 111 110 110 105 115 57 54 43 41 69 65 102 105 93 77 86 90 100 Nov 114 115 114 115 112 115 58 51 40 39 72 62 104 105 94 82 84 94 105 Dec 121 114 121 114 117 111 66 53 45 38 83 65 107 106 99 83 77 92 161 1937 114 112 115 113 111 107 63 51 45 37 77 63 107 105 95 80 73 93 72 J F a e n b . 116 117 116 118 116 112 62 54 47 42 75 64 108 108 100 82 76 95 76 Mar 118 122 117 122 128 119 56 56 45 47 64 63 110 110 106 83 80 93 90 April 118 122 118 125 115 105 53 61 44 51 61 68 111 111 110 84 79 93 89 May 118 122 118 123 117 118 56 68 44 52 66 81 112 112 110 80 80 93 95 June... 114 115 114 114 115 118 61 72 42 47 77 92 111 110 108 78 79 93 90 July.— 114 111 114 110 112 116 67 75 44 45 86 99 112 111 105 80 82 92 65 Aug 117 115 117 114 113 121 62 66 40 40 81 87 112 112 109 79 81 93 72 Sept. ._ 111 109 110 106 116 125 56 56 37 37 71 72 110 112 105 78 87 94 100 Oct 102 102 100 99 113 123 52 49 36 35 65 61 108 110 105 76 84 93 103 Nov 88 90 85 86 109 113 56 50 32 31 76 65 104 104 93 71 72 91 101 Dec 84 80 79 75 115 109 61 49 30 25 87 68 98 97 85 67 62 89 156 1938 Jan 80 79 76 75 108 103 52 42 26 22 73 59 93 91 75 65 59 90 70 Feb 79 79 75 76 103 99 51 44 32 28 66 56 92 91 78 62 57 88 70 Mar 79 80 75 77 104 96 46 46 33 35 56 55 90 91 78 60 57 86 77 April... 77 78 73 76 100 91 52 59 37 43 65 73 88 89 75 57 55 83 86 May 76 77 73 75 92 90 51 61 37 44 62 76 86 86 73 58 57 78 80 June 77 77 74 75 92 92 54 63 42 46 64 76 85 84 71 58 58 82 79 July.— 83 81 82 79 93 93 59 65 49 49 68 78 86 85 71 61 62 83 58 Aug 88 87 87 85 95 97 66 69 53 52 77 84 88 89 77 62 63 83 65 Sept.— 90 91 89 89 97 102 78 79 56 56 96 97 89 92 82 64 71 86 91 Oct 96 97 95 95 98 106 82 78 57 56 102 96 90 92 84 68 75 84 92 Nov 103 104 103 103 102 105 96 85 56 54 128 111 93 93 84 69 70 89 99 Dec 104 98 104 98 109 103 96 77 57 48 128 100 94 94 87 69 64 89 156 1939 Jan 101 100 100 r99 110 105 86 70 55 45 111 90 95 92 84 69 63 88 69 Feb 99 99 97 98 110 105 73 63 58 51 85 72 94 94 86 67 62 87 69 Mar 98 100 96 100 110 102 69 69 55 58 80 79 94 94 88 66 63 88 82 April. __ 92 95 92 96 95 88 67 76 58 68 74 83 94 94 86 60 58 88 88 May___ 92 94 91 94 98 97 63 75 55 65 68 84 93 93 85 62 62 85 87 June 98 98 97 97 104 105 63 73 58 64 67 80 94 93 87 67 67 86 83 July.... 101 97 100 95 106 107 67 73 62 63 71 81 95 94 84 69 70 86 60 Aug 103 99 104 99 91 96 73 76 67 66 78 84 96 96 90 70 71 89 69 Sept— 111 112 111 110 114 123 73 73 68 68 76 77 97 100 94 77 85 91 97 Oct P120 P123 P120 P121 P122 P133 P77 P77 P67 P65 P84 P79 P101 P103 P101 80 89 80 99 p Preliminary. r Revised. * Average per working day. 1 For indexes of groups and separate industries see pp. 1121-1122; 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 BULLETIN for October 1938, pp. 835- 837, and for October 1939, p. 878. For current indexes of groups and separate industries see pp. 1123-1126. Underlying figures are for payroll period ending nearest middle of month. 4 For indexes of groups see p. 1128. 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, and for October 1939, pp. 879-887. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1939 FEDERAL RESERVE BULLETIN 1121 INDUSTRIAL PRODUCTION, BY INDUSTRIES (ADJUSTED INDEXES) [Index numbers of the Board of Governors; adjusted for seasonal variation. 1923-25 average=100] 1938 1939 Industry Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Manufactures—Total 89 95 103 104 100 97 06 92 01 97 100 104 Ill P120 1 Durable 69 83 94 92 88 ••84 80 76 71 82 88 92 103 Nondurable 107 106 110 114 no 109 110 105 108 110 110 115 117 P117 IRON AND STEEL 75 90 108 101 93 88 83 79 73 89 100 105 121 157 Pig iron . . 59 67 76 74 72 73 75 66 55 73 81 91 101 119 Steel ingots 77 92 112 104 95 89 84 80 75 90 102 107 123 160 TRANSPORTATION EQUIPMENT: Automobiles 46 84 96 99 105 100 01 87 73 81 87 89 85 78 Locomotives _._. 4 5 8 12 12 12 14 14 15 15 15 19 NONFERROUS METALS: Tin deliveries * 71 81 73 59 66 72 76 92 102 93 87 99 97 95 Zinc 75 80 88 94 89 87 00 91 80 90 91 93 98 110 Lead 50 50 66 57 70 73 69 71 82 70 68 71 71 70 CEMENT AND GLASS: Cement 69 80 84 82 69 80 90 81 75 79 82 76 78 87 Glass, plate _ _._ 107 155 155 153 147 133 131 83 80 124 87 121 165 222 COKE: Byproduct 89 08 105 106 106 105 106 94 77 103 110 120 130 Beehive 5 5 6 6 6 5 5 2 2 5 5 5 7 23 TEXTILES 103 100 112 117 109 109 110 97 104 111 111 120 121 Cotton consumption. _ 107 104 112 120 111 111 114 105 110 115 117 128 129 129 Wool 93 91 107 116 107 111 105 85 105 116 114 123 118 P119 Consumption _ ___ 107 101 123 134 114 117 110 01 120 138 136 150 138 P131 Machinery activity * 86 87 101 112 113 113 91 80 98 105 105 103 103 Carpet and rug loom activity L 66 67 69 72 77 87 84 78 73 70 64 79 84 Silk deliveries 111 104 123 116 107 97 108 88 76 84 84 87 107 120 LEATHER AND PRODUCTS 103 101 107 123 124 124 121 115 113 108 114 117 103 Tanning 78 81 00 98 103 105 05 07 04 91 88 98 86 Cattle hide leathers 86 80 94 99 100 104 93 01 01 87 89 106 92 Calf and kip leathers 72 69 89 109 119 118 103 101 80 91 69 '73 71 Goat and kid leathers 65 70 77 85 97 97 95 106 104 102 106 103 87 Boots and shoes _ 119 114 118 138 137 137 138 127 126 119 131 130 114 P116 FOOD PRODUCTS: Slaughtering and meat packing 98 05 04 86 87 83 89 00 04 87 89 92 100 99 Hogs 88 02 88 79 74 67 73 81 84 73 77 84 95 69 Cattle • 106 04 06 89 97 100 106 00 104 103 102 100 102 95 Calves 118 108 112 106 111 108 110 105 108 104 107 104 111 110 Sheep... _ 152 140 152 137 150 157 156 135 142 143 145 139 146 144 Wheat flour 88 01 86 92 92 94 97 100 05 100 96 88 103 91 Sugar meltings _ 106 103 100 108 106 70 78 04 72 66 81 77 96 91 TOBACCO PRODUCTS __ 160 160 164 179 165 162 164 164 170 170 158 168 164 166 Cigars 75 74 76 76 79 77 78 77 75 75 73 76 76 75 Cigarettes 229 211 233 258 237 231 236 236 246 247 227 241 235 240 Manufactured tobacco _ ._ 84 78 05 07 78 78 80 81 85 84 80 89 85 83 PAPER AND PRINTING: Newsprint production . 57 58 63 61 61 61 62 63 65 63 63 63 65 63 Newsprint consumption . 130 132 128 128 125 127 126 130 127 132 126 130 142 137 PETROLEUM REFINING 206 208 208 201 205 201 202 200 211 215 212 218 221 Gasoline 1 265 269 269 259 262 256 256 265 260 276 273 280 284 Kerosene 109 102 104 107 112 113 122 122 124 122 117 123 118 Fuel oil i _ _ 141 143 140 142 145 138 140 143 143 144 139 140 148 Lubricating oil1 113 110 109 100 106 117 111 115 110 121 115 128 123 RUBBER TIRES AND TUBES 1 95 99 100 112 110 109 114 104 102 112 111 122 123 126 Tires, pneumatic 1 98 103 104 116 115 114 119 108 106 117 116 127 128 131 Inner tubes 1 71 72 75 79 76 71 76 73 68 77 77 84 '86 90 Minerals—Total 97 98 102 109 110 110 110 05 08 104 106 91 114 P122 Bituminous coal 71 72 76 78 75 79 77 31 46 71 75 77 84 Anthracite 50 49 58 67 69 61 61 80 73 53 53 71 pro Petroleum, crude.. . ._ 158 161 165 169 171 169 173 174 175 174 127 174 ^185 Iron ore 41 50 42 55 74 78 97 128 Zinc 75 80 88 94 89 87 90 01 89 90 91 93 98 110 Lead _ _ . . 50 50 66 57 70 73 69 71 82 70 68 71 71 70 Silver 102 102 51 85 86 100 86 101 71 107 70 79 104 i Without seasonal adjustment. v Preliminary. r Revised. NOTE.—Descriptive material and tables giving back figures may be obtained upon request from the Division of Research and Statistics. Series on shipbuilding, silk-loom activity, and on production of book paper, wrapping paper, fine paper, boxboard, mechanical wood pulp, chemical wood pulp, paper boxes, and lumber, included in the total index, are withheld from publication pending revision. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1122 FEDERAL RESERVE BULLETIN DECEMBER 1939 INDUSTRIAL PRODUCTION, BY INDUSTRIES (UNADJUSTED INDEXES) [Index numbers of the Board of Governors; without seasonal adjustment. 1923-25 average=100] 1938 1939 Industry Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Oct. Manufactures—Total _ 89 95 103 '99 100 96 94 97 95 99 110 P121 Durable 66 79 92 85 84 ••84 86 84 78 85 83 85 99 P122 Nondurable 109 109 113 108 111 111 111 106 107 108 105 111 119 P121 IRON AND STEEL.. 75 100 90 92 93 87 79 103 120 152 Pig iron 57 77 71 75 79 70 56 87 98 119 Steel ingots... 76 103 92 93 95 89 81 105 122 156 TRANSPORTATION EQUIPMENT: Automobiles __. _ 115 117 105 ••100 105 106 59 93 Locomotives 8 12 11 12 14 13 15 15 NONFERROUS METALS: Tin deliveries 73 102 95 Zinc 90 106 Lead - -- 72 CEMENT AND GLASS: Cement 86 91 64 42 48 65 100 Glass, plate 107 155 155 153 147 133 138 93 112 78 121 165 222 COKE: « Byproduct- 107 107 107 108 109 95 76 101 107 116 128 Beehive 7 7 7 6 2 2 5 4 4 7 22 TEXTILES 103 103 116 111 114 115 112 100 104 105 103 112 121 P127 104 107 117 111 117 119 119 113 114 111 106 115 125 133 Cotton consumption 96 96 113 117 109 116 106 84 100 109 106 118 122 P126 Wool 113 111 134 135 118 128 122 88 111 124 121 139 145 P145 Consumption 86 87 101 112 113 113 91 80 98 105 105 103 103 P115 Machinery activity 66 67 69 72 77 87 84 78 73 70 64 79 84 P90 Carpet and rug loom activity 116 104 127 103 122 104 104 87 75 75 80 91 113 120 Silk deliveries LEATHER AND PRODUCTS 119 111 102 104 115 126 125 112 105 104 112 rl30 119 P115 Tanning 84 86 95 98 108 94 94 88 90 100 91 Cattle hide leathers 90 92 96 101 111 94 91 87 104 95 Calf and kip leathers._. 83 82 85 94 98 108 91 91 85 81 ••88 82 Goat and kid leathers.. 68 73 76 92 92 101 97 105 96 102 98 101 91 Boots and shoes 143 128 112 109 125 138 145 124 115 113 128 '149 137 P130 FOOD PRODUCTS: Slaughtering and meat packing... 90 94 104 101 101 84 81 92 84 80 91 97 Hogs 66 79 97 103 100 74 74 72 81 76 69 64 71 84 Cattle 118 110 111 94 98 88 92 87 101 96 101 98 114 111 Calves 113 113 114 100 104 100 111 114 122 108 104 96 107 116 176 163 151 135 151 147 142 127 139 140 145 140 170 158 Wheat flour 104 102 93 90 91 91 91 90 88 94 94 122 102 114 98 78 70 92 109 81 78 102 87 Sugar meltings.. TOBACCO PRODUCTS 177 161 167 145 167 147 156 151 172 186 171 180 181 179 Cigars 86 90 90 57 61 67 71 72 78 81 76 87 92 Cigarettes 252 222 231 212 232 211 224 215 248 272 249 261 259 252 Manufactured tobacco.. 91 81 92 79 79 79 81 78 85 86 80 91 PAPER AND PRINTING: Newsprint production... 57 58 61 62 61 61 64 64 62 61 64 63 Newsprint consumption. 128 140 137 132 120 125 131 139 131 131 112 116 139 146 PETROLEUM REFINING.. 206 209 208 202 205 202 201 208 211 215 211 217 221 Gasoline 265 269 269 259 262 256 256 265 269 276 273 280 284 Kerosene 111 107 113 115 115 115 119 121 119 113 108 116 121 Fuel oil 141 143 140 142 145 138 140 143 143 144 139 140 148 Lubricating oil 113 110 109 100 106 117 111 115 119 121 115 128 123 RUBBER TIRES AND TUBES 95 100 112 110 109 114 104 102 112 111 122 123 126 Tires, pneumatic 98 103 104 116 115 114 119 108 106 117 116 127 128 131 Inner tubes 71 72 75 79 76 71 76 73 68 77 77 84 '86 90 Minerals—Total . 102 106 105 103 105 105 102 97 105 107 123 P133 Bituminous coal._ 76 79 86 82 83 77 26 40 75 90 P102 Anthracite 51 63 60 66 74 50 83 73 51 44 53 72 P75 Petroleum, crude. 163 163 163 164 164 166 171 174 177 173 178 129 179 P187 Iron ore 78 86 35 82 132 150 159 187 218 Zinc 71 78 88 93 94 90 87 84 87 93 106 Lead 48 52 69 58 75 70 71 65 68 67 72 Silver 97 101 55 108 102 105 59 78 p Preliminary. «• Revised. NOTE.—Descriptive material and tables giving back figures may be obtained upon request from the Division of Research and Statistics. Series on shipbuilding, silk-loom activity, and on production of book paper, wrapping paper, fine paper, boxboard, mechanical wood pulp, chemical wood pulp, paper boxes, and lumber, included in the total index, are withheld from publication pending revision. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1123 DECEMBER 1939 FEDERAL RESERVE BULLETIN FACTORY EMPLOYMENT, BY INDUSTRIES (ADJUSTED FOR SEASONAL VARIATION) [Index numbers of the Board of Governors; adjusted to Census of Manufactures through 1937. 1923-25 average=100] 1938 1939 Industry and group Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Total 89 4 90.2 92.8 94.4 94.6 94.3 94.0 93.8 93.3 94.3 95.3 96 0 97 3 101 0 Durable goods 75.6 78.3 82.1 83.7 84.4 84.2 83.7 83.9 82.9 83.9 84.7 '85.3 88.5 94.1 Nondurable goods 102.7 101.5 103.1 104.7 104.4 103.9 103.8 103.3 103.3 104.2 105.4 105.9 105.7 107.5 IRON, STEEL, PRODUCTS 83.6 85.8 89.1 90.9 90.7 90.4 90.7 90.5 89.6 90.3 90.6 92.5 95.7 105.0 Blast furnaces, steel works 88 89 93 95 95 94 94 95 94 96 96 97 101 115 Bolts, nuts, washers, rivets. 87 90 95 97 96 96 97 94 93 93 94 98 101 113 Cast-iron pipe _ 69 70 73 72 72 73 73 73 73 71 72 73 74 76 Cutlery, edge tools 84 85 88 90 90 89 90 90 86 91 91 94 97 102 Forgings 49 52 64 56 54 55 54 55 55 54 56 56 59 66 Hardware 71 83 89 91 89 87 87 84 80 72 70 78 84 88 Plumbers' supplies 75 73 74 74 74 74 74 74 75 76 77 78 80 81 Stamped, enameled ware... 135 139 146 147 144 143 147 144 142 147 147 157 158 160 Steam, hot-water heating 74 75 74 74 74 74 75 75 74 75 78 79 80 84 Stoves 79 81 79 82 82 84 85 84 85 86 89 88 86 89 Structural, ornamental _ 58 59 60 62 63 66 67 67 67 66 67 69 71 75 Tin cans, tinware 93 88 91 93 94 95 95 96 95 95 95 98 97 104 Tools 76 76 80 83 83 84 84 84 84 84 81 85 87 90 Wirework _ _ _ 125 137 154 162 154 152 151 148 142 135 128 121 149 164 MACHINERY __ 85.1 86.8 89.2 91.7 92.3 94.0 94.8 94.9 94.4 95.4 96.1 97.3 99.7 105 6 Agricultural implements 100 104 104 110 114 123 124 122 119 118 115 121 123 125 Cash registers, etc 134 134 133 134 132 131 131 127 126 128 127 125 127 126 Electrical machinery 78 81 83 85 84 85 86 87 86 87 87 88 92 97 Engines, turbines, etc. 82 85 87 88 92 91 91 91 93 95 95 97 99 108 Foundry, machine-shop products- 75 75 77 79 80 81 82 82 81 83 83 85 86 91 Machine tools 120 122 124 126 128 132 134 138 140 144 149 146 155 170 Radios, phonographs 89 98 117 123 126 129 130 124 121 122 131 126 129 145 Textile machinery 63 64 66 69 69 71 72 73 75 75 77 78 78 81 Typewriters 123 126 127 127 127 128 129 129 126 126 122 119 122 123 TRANSPORTATION EQUIPMENT 69.8 80.3 90.6 93.2 94.1 92.9 91.2 91.1 87.2 88.9 90.0 ••88.3 98.2 104.2 Aircraft 798 824 837 868 900 966 968 1,075 1,169 1,267 1,385 1 414 1,512 1 606 Automobiles 72 86 99 102 102 98 97 96 89 89 90 f88 100 105 Cars, electric-, steam-railroad 31 28 29 33 35 38 36 34 34 33 32 31 34 41 Locomotives __ 16 15 16 17 19 17 16 18 21 25 28 29 28 25 Shipbuilding 93 94 100 103 106 113 111 112 118 127 128 125 128 132 NONFERROUS METALS, PRODUCTS 86.2 88.4 91.9 93.1 93.3 93.4 93.4 93.2 92.8 92.8 94.6 r96.3 99.2 107.1 AJnminTim 128 131 132 131 131 135 140 143 142 145 153 157 152 165 Brass, bronze, copper 98 101 106 106 105 104 104 103 104 105 106 109 115 130 Clocks, watches 79 81 79 79 84 84 84 85 84 82 84 85 85 87 Jewelry _ _ _ _ 84 84 86 91 90 91 92 93 90 91 94 95 91 93 Lighting equipment. _ _ 71 77 82 85 86 84 80 77 76 73 75 77 88 96 Silverware, plated ware 61 64 65 67 68 68 69 68 68 68 70 70 71 70 Smelting, refining _ 70 71 76 77 78 78 77 78 77 77 76 75 77 83 LUMBER, PRODUCTS 62.8 62.4 64.0 65.0 65.7 65.1 63.2 64.2 64.8 65.3 66.0 66.4 67 4 69 4 Furniture _ 80 79 80 83 84 85 85 85 84 85 86 86 87 89 Lumber, millwork _ 65 65 67 57 58 67 66 67 56 69 69 60 61 63 Lumber, sawmills 58 57 59 69 60 59 56 57 59 69 60 60 61 63 STONE, CLAY, GLASS PRODUCTS _ 70.7 73.2 76.8 77.8 79.6 77.4 77.4 77.9 75.4 77.5 78.4 78.1 79 0 81 0 Brick, tile, terra cotta . 62 53 56 57 61 59 68 58 55 57 58 57 59 60 Cement 63 67 68 68 64 66 66 67 63 66 67 67 67 68 Glass.. . _ _ 87 92 98 99 100 95 95 97 96 98 98 99 100 105 Marble, granite, slate 45 46 47 49 49 48 53 53 52 60 51 50 48 50 Pottery___ 81 82 84 85 87 86 85 84 84 87 88 87 87 87 TEXTILES, PRODUCTS 100.3 98.9 100.0 102.2 101.9 101.8 101.0 99.6 99.8 101.2 104.1 104.9 103.6 106.4 Fabrics 89.0 88.1 90.5 92.3 91.9 91.7 91.0 90.2 91.0 92.0 94.5 95.4 94.2 98.0 Carpets, rugs _ 67 71 74 76 78 77 77 77 74 73 74 76 78 83 Cotton goods . . 85 84 85 85 85 86 85 85 85 86 91 91 94 Cotton small wares. 76 77 80 83 82 82 80 78 80 79 83 84 86 - 91 Dyeing, finishing textiles 118 116 118 121 122 122 122 121 124 120 128 129 129 133 Hats, fur-felt 94 96 91 89 90 90 87 86 84 89 93 90 87 86 Hosiery. __ 147 148 148 151 153 153 154 154 153 152 154 155 149 152 Knitted outerwear 71 72 71 77 64 68 70 67 68 72 75 80 75 75 Knitted underwear 69 69 70 71 72 71 70 70 73 74 77 79 78 79 Knitted cloth 131 135 139 144 134 134 134 133 128 138 138 140 140 147 Silk, rayon goods 64 62 64 65 64 64 65 65 66 63 63 62 61 65 Woolen, worsted goods 78 75 84 88 88 84 81 77 81 86 89 85 83 90 Wearing apparel _ 121.4 119.0 116.9 120.0 119.5 120.2 119.2 116.4 115.2 117.5 121.1 121.4 120.4 120.4 Clothing, men's. 106 104 104 106 103 104 104 103 102 104 107 107 106 107 Clothing, women's 177 171 167 173 171 173 171 165 161 169 174 174 172 170 Corsets, allied garments 103 104 105 106 107 107 107 109 111 114 115 117 116 117 Men's furnishings 141 142 138 140 132 136 132 128 125 129 135 140 136 138 Millinery 84 84 72 77 79 84 84 81 80 74 73 77 80 80 Shirts, collars 119 117 117 119 130 123 121 119 120 120 123 121 121 121 r Revised. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1124 FEDERAL RESERVE BULLETIN DECEMBER 1939 FACTORY EMPLOYMENT, BY INDUSTRIES (ADJUSTED FOR SEASONAL VARIATION)—Continued [Index numbers of the Board of Governors; adjusted to Census of Manufactures through 1937. 1923-25 average=100] 1938 1939 Industry and group Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. LEATHER, MANUFACTURES 97.2 96.5 97.6 98.1 98.9 99.0 99.2 97.7 97.1 98.7 97.4 96.8 97.2 Boots, shoes 97 96 96 97 98 98 98 97 92 98 96 95 95 Leather 81 83 85 86 87 87 86 85 84 87 87 87 FOOD, PRODUCTS 126.7 123.4 127.4 128.8 128.8 125.7 127.3 127.0 128.4 129.4 127.9 129.7 128.1 126.4 Baking 144 143 144 144 144 144 144 144 146 147 147 146 146 146 Beverages -- 263 263 276 274 276 275 270 270 272 275 269 269 269 270 Butter 96 96 95 96 96 94 94 95 96 95 95 96 95 95 Canning, preserving 153 129 149 151 150 143 158 157 159 162 150 '160 147 133 Confectionery 83 82 83 86 84 83 82 81 81 80 82 86 82 81 Flour 76 76 78 79 79 77 78 77 80 81 81 79 82 80 Ice cream 75 77 78 78 79 78 78 78 77 77 75 75 76 77 Slaughtering, meat packing 98 99 100 100 98 96 96 96 98 100 101 101 102 103 Sugar, beet 116 108 108 152 212 120 107 103 107 104 99 105 131 108 Sugar refining, cane 99 95 94 93 102 87 94 96 90 100 TOBACCO MANUFACTURES 65.7 64.4 65.0 65.6 65.9 64.8 61.4 64.5 65.1 65.5 65.7 65.2 64.4 63.5 Tobacco, snuff 65 59 63 63 61 61 62 63 62 62 61 62 62 62 Cigars, cigarettes 65 65 66 67 65 62 65 65 66 65 64 PAPER, PRINTING 109.0 109.2 110.6 111.1 111.0 111.1 111.4 111.5 111.5 111.1 111.8 112.0 112.8 114.9 Boxes, paper 105 105 108 110 111 111 112 111 111 111 113 115 116 121 Paper, pulp 104 105 106 106 106 106 106 106 107 106 106 107 109 114 Book, job printing 98 99 100 100 99 100 100 99 99 101 99 98 99 Newspaper, periodical printing. 113 114 114 113 114 114 114 115 114 114 115 116 116 CHEMICAL, PETROLEUM, AND COAL PRODUCTS 112.9 112.6 113.3 113.7 113.6 112.9 113.4 114.2 114.4 113.1 '113. 7 rill. 9 116.2 119.8 Petroleum refining 121 120 120 119 119 119 119 118 119 120 121 122 122 122 Other than petroleum 110.9 110.8 111.8 112.4 112.3 111.4 112.2 113.3 113.4 111.4 rill. 9 nO9.4 114.9 119.2 Chemicals 113 115 119 120 119 120 120 118 117 117 115 119 122 132 Cottonseed oil, cake, meal 100 99 101 104 97 88 96 103 110 88 85 81 87 93 Druggists' preparations 109 108 108 108 109 107 108 109 111 112 113 113 Explosives 87 86 84 85 86 86 86 87 90 92 93 98 102 Fertilizers 103 99 102 100 103 97 110 115 107 105 103 111 108 Paints, varnishes 118 118 118 119 119 118 120 121 119 120 122 125 123 125 Eayon, allied products 299 300 297 297 297 301 299 309 302 295 298 254 297 Soap 81 80 77 81 81 80 79 78 79 84 87 87 RUBBER PRODUCTS 75.8 76.5 81.4 82.9 81.4 81.4 82.2 81.3 81.1 80.8 79.7 83.6 86.1 91.2 Rubber boots, shoes 54 56 60 60 58 60 60 60 61 59 47 58 58 60 Rubber tires, inner tubes 61 63 66 67 67 66 67 67 67 67 68 70 74 Rubber goods, other 125 123 133 137 133 133 134 131 129 131 134 138 144 154 r Revised. NOTE.—Figures for October 1939 are preliminary. For description and back data see the BULLETIN for October 1938, pages 835-886, and for October 1939, pages 878-887. Underlying figures are for payroll period ending nearest middle of month. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1939 FEDERAL RESERVE BULLETIN 1125 FACTORY EMPLOYMENT AND PAYROLLS, BY INDUSTRIES (WITHOUT SEASONAL ADJUSTMENT) [Index numbers'of the Bureau of Labor Statistics; adjusted to Census of Manufactures through 1937. 1923-25 average=100] Factory employment Factory payrolls Industry and group 1938 1939 1938 1939 Sept. Oct, June July Aug. Sept. Oct Sept. Oct, June July Aug. Sept. Oct, Total 92.0 92.4 93.4 93.5 '96.3 100.0 103.3 81.6 84.2 86.5 84.4 93.6 101.3 Durable goods 75.9 79.7 84.6 83.0 '83.9 89.4 95.5 68.1 74.6 80.7 76.0 '81.5 87.5 99.0 Nondurable goods 107.3 104.6 101.8 103.5 108.0 110.2 110, 96.7 94.9 93.0 99.0 100.5 103.9 IRON, STEEL, PRODUCTS 84.3 90.4 92.3 96.4 106.0 70.1 76.7 82.6 78.6 '88.0 91.5 111.5 Blast furnaces, steel works 88 96 95 97 101 115 70 86 82 93 95 124 Bolts, nuts, washers, rivets 87 90 93 93 97 100 113 81 90 83 104 109 136 Cast-iron pipe 70 70 73 75 75 75 76 57 57 66 66 68 63 72 Cutlery, edge tools 84 87 90 87 92 97 104 72 78 82 72 80 85 95 Forgings 49 52 54 54 56 59 65 46 51 56 55 59 63 75 Hardware 70 84 72 69 76 83 88 68 89 74 65 80 91 97 Plumbers' supplies 74 74 76 77 78 80 82 59 62 68 65 71 72 80 Stamped, enameled ware 133 141 147 144 '153 156 162 134 149 146 137 156 156 170 Steam, hot-water heating 76 77 75 76 78 81 86 57 63 63 60 68 71 83 Stoves — 84 88 88 90 92 97 76 83 77 73 78 82 93 Structural, ornamental 60 61 67 72 74 76 48 49 59 59 64 63 69 Tin cans, tinware 103 91 98 100 107 107 106 105 91 103 103 115 117 111 Tools 75 77 84 80 84 86 91 66 70 79 72 79 82 92 Wirework 121 138 136 126 116 145 166 122 142 138 124 116 161 183 MACHINERY 85.4 87.3 95.6 100.3 106.5 77.8 81.1 95.4 94.0 100.9 111.1 Agricultural implements 94 98 119 113 114 116 118 93 99 127 123 124 125 131 Cash registers, etc 134 134 128 127 125 127 126 122 121 125 123 119 124 126 Electrical machinery 78 81 87 87 88 92 97 76 81 92 91 93 98 106 E Fo ng u i n n d e r s y , , tu m r a b c in h e in s e , - e s t h c op products. 8 7 3 5 8 7 3 5 99 8 9 3 6 8 9 4 7 1 9 0 1 5 8 6 8 4 8 6 8 5 1 7 1 7 4 1 7 1 5 0 1 7 1 8 4 1 8 1 0 6 130 Machine tools 121 122 83 147 140 156 171 117 120 166 166 161 182 Radios, phonographs 103 119 145 130 136 150 177 92 108 105 114 123 139 170 Textile machinery 62 63 120 77 78 77 80 53 55 73 75 75 73 76 Typewriters 123 126 75 121 118 122 124 114 126 113 113 117 122 126 125 TRANSPORTATION EQUIPMENT __. 64.4 80.2 90.8 79.9 r75.2 95.7 103.1 64.1 83.5 '78.3 99.5 109.0 Aircraft 774 799 1,305 1,399 1,414 1,467 1,558 726 774 1,299 1,338 1,381 1,362 1,514 Automobiles 65 86 92 76 70 97 105 66 91 89 73 '75 103 112 L C o a c rs o , m e o le t c iv tr e i s c-, steam-railroad 3 1 0 6 2 1 8 6 3 2 5 6 3 2 2 9 32 3 2 3 8 4 2 0 6 2 1 4 1 2 1 2 1 3 2 0 5 2 2 5 7 2 2 7 7 2 2 8 6 3 2 6 5 Shipbuilding 95 126 124 1 2 2 9 2 129 133 95 136 132 128 135 143 NONFERROUS METALS, PRODUCTS 87.3 91.5 91.3 91.3 94.7 100.4 110.6 78.7 85.4 84.0 83.4 96.6 113.5 Aluminum 127 133 144 150 154 151 168 135 144 157 148 163 167 191 Brass, bronze, copper 102 104 104 108 115 131 93 100 103 107 '111 123 154 Clocks, watches 84 80 80 83 86 90 75, 82 76 76 85 89 99 J L e i w gh e t l i r n y g equipment 71 97 8 7 5 1 8 7 7 1 9 7 4 3 1 8 0 8 0 1 9 0 9 7 7 5 8 8 8 6 8 5 7 5 0 6 6 5 9 4 7 5 7 8 8 7 4 5 8 9 2 3 Silverware, plated ware 62 68 63 69 72 73 55 61 58 51 59 66 71 Smelting, refining 70 72 77 76 75 77 84 65 67 72 71 71 71 81 LUMBER, PRODUCTS 65.3 65.2 66.3 66.7 68.7 70.1 72.5 59.6 59.7 60.1 56.3 62.9 63.4 Furniture 84 84 83 84 88 91 94 72 72 69 68 ' 76 78 85 Lumber, millwork 56 56 60 60 61 62 45 45 48 45 50 50 52 Lumber, sawmills 61 61 63 55 54 56 50 57 56 61 STONE, CLAY, GLASS PRODUCTS 73.3 75.7 80.5 79.7 81.8 83.6 61.5 66.3 70.6 71.7 71.8 78.5 Brick, tile, terra cotta 55 56 61 62 62 63 63 42 44 50 50 50 55 Cement 71 72 73 73 72 72 62 64 68 70 68 72 Glass 87 93 99 96 99 101 106 87 98 101 92 103 105 121 Marble, granite, slate 49 48 52 54 53 52 52 34 33 40 40 '41 39 40 Pottery 84 82 85 67 77 73 75 75 79 TE F X a T C b I a r L i r E c p s S e , t s P , R r O u D gs UCTS 1 8 0 8 1 . . 4 3 1 8 7 0 9 0 1 . . 0 9 9 8 7 9 8 3 . . 6 0 9 9 7 8 1 4 . . 1 1 1 9 7 0 3 3 6 . . 1 5 1 9 7 0 3 4 8 . . 5 5 1 8 9 0 8 8 3 . .4 8 7 5 6 5 4 . . 4 8 8 7 5 5 7 9 . . 1 4 7 7 5 9 5 7 . .6 7 7 5 6 9 7 . . 5 3 ' 8 6 8 8 0 4 . . 3 3 8 6 1 8 .0 8 9 7 8 3 5 . . 9 2 Cotton goods 84 84 86 87 90 94 71 73 71 73 75 79 84 Cotton small wares 75 78 77 80 81 84 92 69 75 70 73 76 82 89 Dyeing, finishing textiles 114 116 117 119 122 125 133 98 101 97 98 103 108 115 Hats, fur-felt 97 96 86 90 94 90 86 94 77 74 82 84 74 61 Hosiery 148 151 149 149 152 150 155 163 171 148 144 '162 156 176 Knitted outerwear 75 78 71 72 78 79 81 58 63 56 57 64 62 68 Knitted underwear 69 70 75 73 77 78 81 59 62 67 65 68 67 75 Knitted cloth 133 139 135 136 140 143 152 115 118 111 114 117 121 132 Silk, rayon goods 66 64 59 60 63 63 67 53 53 48 48 52 52 57 Woolen, worsted goods 77 76 85 86 86 82 91 61 62 71 73 72 68 77 Wearing apparel 125.! 123.3 112.6 109.5 122.1 124. 124.8 101.5 94.7 82.3 79.7 '98.3 92.1 99.0 Clothing, men's 110 107 100 105 110 Ill 110 83 77 74 78 '86 80 84 Clothing, women's 184 178 158 144 174 179 178 142 132 106 97 133 118 133 Corsets, allied garments 103 105 113 112 114 116 118 103 112 117 113 112 120 127 Men's furnishings 137 148 127 124 131 133 145 123 138 111 106 120 121 144 Millinery 93 87 68 56 78 89 83 102 70 45 37 67 81 64 Shirts, collars 121 122 119 118 120 123 127 95 96 91 103 102 116 Revised. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1126 FEDERAL RESERVE BULLETIN DECEMBER 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 1937. 1923-25 average=100] Factory employment Factory payrolls Industry and group 1938 1939 1938 1939 Sept. Oct. June July Aug. Sept. Oct. Sept. Oct. June July Aug. Sept. Oct. LEATHER, MANUFACTURES 98.2 95.4 94.1 19.7 100. 7 97.8 96.1 79.5 74. 74.6 83.6 '•84. 6 76.6 76.5 Boots, shoes 99 95 93 100 97 94 78 71 70 82 83 72 71 Leather 80 83 85 87 77 79 82 82 83 84 FOOD, PRODUCTS 150.2 133.9 127.2 135.0 147. 0 150.7 137.1 135.8 125.4 123.8 128.6 135.1 139.6 129.7 Baking 146 145 147 148 147 148 148 137 133 138 139 135 139 137 Beverages 281 263 298 301 295 287 270 320 293 355 359 350 336 308 Butter 100 96 103 104 103 99 95 85 81 87 89 87 84 82 Canning, preserving 317 172 141 197 289 304 177 257 141 110 154 251 264 153 Confectionery 92 97 72 70 79 91 96 92 93 69 64 77 92 95 Flour 78 78 79 83 80 84 83 78 77 74 80 77 83 Ice cream 82 72 92 93 89 82 73 66 60 75 77 74 63 Slaughtering, meat packing. 97 99 101 100 101 103 106 107 107 109 106 108 108 Sugar, beet 107 54 57 121 290 105 246 59 54 86 117 241 Sugar refining, cane 100 96 91 91 101 82 77 81 81 86 87 TOBACCO MANUFACTURES.. 67.8 67.7 65.2 65.4 66.' 66.4 66.7 62.9 61.5 61.8 62.7 62.9 63.3 Tobacco, snuff 64 61 59 61 61 62 71 63 65 67 67 67 71 Cigars, cigarettes 66 67 67 67 62 63 60 61 62 62 62 PAPER, PRINTING 109.4 110.1 109.8 110.1 110.9 113.2 116.4 102. 4 105.1 103.5 102.0 103.7 109.3 113.7 Boxes, paper 107 112 108 110 114 119 128 118 126 118 117 125 133 150 Paper, pulp 104 105 106 106 107 109 114 102 107 105 101 108 113 126 Book, job printing 98 99 97 99 98 99 83 83 84 86 83 86 84 Newspaper, periodical printing. 114 114 114 112 116 117 105 107 106 102 102 110 110 CHEMICAL, PETROLEUM, AND COAL PRODUCTS 114. 114.9 109.8 110.4 109. 2 117.7 122.0 118.1 119.3 118.7 rll7. 9 119.1 124. 133.6 Petroleum refining 122 121 121 122 123 123 123 135 133 134 132 136 135 141 Other than petroleum 112.7 113.5 107.2 rlO7. 7105. 116.4 121.8 112.9 115.1 113.9 rll3.7 113.9 121.4 131.4 Chemicals 115 117 117 117 119 124 134 124 130 132 131 136 140 158 Cottonseed oil, cake, meal 131 140 54 49 57 113 132 106 115 45 42 48 94 114 Druggists' preparations 111 112 108 108 110 114 117 118 124 119 121 122 125 135 Explosives 89 88 90 91 93 100 104 98 101 101 103 109 114 125 Fertilizers 92 89 79 73 74 98 98 78 70 65 63 63 86 82 Paints^ varnishes 117 118 124 122 122 122 125 117 119 129 124 126 128 135 Rayon, allied products 302 301 286 297 255 300 310 282 277 272 283 247 286 303 Soap 83 83 82 91 97 102 107 109 RUBBER PRODUCTS 75.8 77.6 78.7 82.6 92.5 74.8 77.7 82.1 81.5 '86.3 91.2 102.2 Rubber boots, shoes 56 58 56 45 59 60 62 56 59 55 43 58 62 64 Rubber tires, inner tubes. 61 63 66 67 70 74 67 75 77 79 83 91 Rubber goods, other 123 125 129 131 133 142 157 114 120 122 121 127 135 162 r Revised. NOTE.—Figures for October 1939 are preliminary. 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

1127 DECEMBER 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 Public works Total R b es u i i d ld en in ti g al a u n t d i l p it u ie b s li ' c Month Factories Commercial Educational * Other 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 71.8 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 12.6 37.7 37.8 83.5 83.6 July 239.8 299.9 88.0 109.3 9.7 17.4 26.2 22.9 10.7 19.4 26.1 28.7 79.3 102.1 August _ 313.1 312.3 99.7 127.2 11.3 10.4 18.3 21.1 21.4 13.8 36.3 24.6 126.1 116.3 September 300.9 323.2 99.6 129.7 10.7 20.7 14.0 26.6 33.9 10.1 33.4 24.9 109.3 111.1 October. _ 357.7 261.8 112.7 118.3 13.8 16.8 24.2 22.6 47.0 9.5 46.0 23.8 114.0 70.8 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 i Not strictly comparable with data for earlier years due to changes in classification. CONSTRUCTION CONTRACTS AWARDED, BY TYPES OF FINANCING [Figures for 37 States east of the Rocky Mountains, as reported by the F. W. Dodge Corporation. Value of contracts in millions of dollars.] Total Publicly-financed» Privately-financed * Month 1934 1935 1936 1937 1938 1939 1934 1935 1936 1937 1938 1939 1934 1935 1936 1937 1938 1930 January __ 186 100 215 243 192 252 157 65 149 112 118 148 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 Jjinft ,_ 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 120 169 275 281 313 312 69 92 153 104 171 158 51 76 122 178 142 154 September 110 167 234 207 301 323 69 97 116 80 160 144 41 70 119 127 141 179 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 i 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 Oct. Sept. Oct. district Oct. Sept. Oct. Oct. Sept. Oct. Boston 16,478 21, 288 35,895 New York 47,226 58,465 82,441 Philadelphia 16,537 18,907 16, 582 Boston 90 67 85 1,608 1,198 1,036 Cleveland 29, 485 34, 232 33,089 New York 260 220 257 3,549 2,448 5,107 Richmond 28, 276 32,058 34, 205 Philadelphia 47 52 67 1,024 1,077 770 Atlanta 27, 571 27,982 28,082 Cleveland 52 38 83 1,348 771 948 Chicago 44, 670 63,806 65,861 Richmond 47 31 51 750 381 442 St. Louis 16, 523 21, 274 20,716 Atlanta 65 33 54 1,137 328 476 Minneapolis 10,041 8,923 10,627 Chicago 137 112 127 3,158 1,262 1,843 Kansas City .._ 10, 299 11,809 11,154 St. Louis.. __ 38 26 42 216 301 477 Dallas 14, 690 24,483 19,046 Minneapolis 13 21 25 155 104 210 Kansas City 38 42 48 350 283 443 Total (11 districts) 261, 796 323, 227 357, 698 Dallas 22 21 21 555 257 316 San Francisco 107 95 137 2,290 992 1,151 Total 916 758 997 16,140 9,402 13,219 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1128 FEDERAL RESERVE BULLETIN DECEMBER : MERCHANDISE EXPORTS AND IMPORTS [In millions of dollars] Merchandise exports 1 Merchandise imports * Excess of exports Month 1935 1936 1937 1938 1939 1935 1936 1937 1938 1939 1935 1936 1937 1938 1939] January 176 199 223 289 213 167 187 240 171 178 9 11 -18 118 35 February 163 182 233 262 219 152 193 278 163 158 11 —11 -45 99 61 March 185 195 257 275 268 177 199 307 173 190 8 -4 -51 102 77 April 164 193 269 274 231 171 203 287 160 186 -6 -10 -18 115 45 May 165 201 290 257 249 171 192 285 148 202 —5 9 5 109 47 June — _- 170 186 265 233 236 157 191 286 146 179 13 —5 -21 87 57 July 173 180 268 228 230 177 195 265 141 169 -3 -15 3 87 61 August 172 179 277 231 251 169 193 246 166 176 3 —14 31 65 75 September _ 199 221 297 246 289 162 216 233 168 181 37 5 63 79 107 October 221 265 333 278 P332 189 213 224 178 P215 32 52 108 100 P117 November 270 226 315 252 169 196 223 176 100 30 92 76 December- 223 230 323 269 187 245 209 171 37 -15 115 98 Year 2,283 2,456 3,349 3,094 2,047 2,423 3,084 1,960 235 33 265 1,134 p Preliminary. i Including both domestic and foreign merchandise. » General imports, including merchandise entered for immediate consumption and that entered for storage in bonded warehouses. 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) Oct. June July Aug. Sept. Oct. Adjusted Without Adjusted Without Month for seasonal seasonal for seasonal seasonal variation adjustment variation adjustment Adjusted for seasonal variation 1938 1939 1938 1939 1938 1939 1938 1939 Total 68 67 69 70 77 80 Coal 69 68 76 78 85 87 Coke 50 51 62 69 82 95 January 90 88 70 69 71 67 63 60 Grain and grain products... 95 90 80 75 88 87 February.. 88 87 70 69 70 68 67 65 Livestock 44 36 39 37 45 44 March 86 88 77 82 70 68 71 69 Forest products . 42 40 43 42 45 50 Ore 48 64 59 67 85 108 April 83 88 86 88 69 67 71 69 Miscellaneous 72 71 72 74 82 86 May 78 85 80 87 69 66 71 68 Merchandise1 ._ _ 62 61 62 62 63 62 June 82 86 79 83 68 67 65 64 July 83 86 58 60 67 67 61 60 Without seasonal adjustment August 83 89 65 69 67 67 65 65 September 86 91 91 97 67 68 70 71 Total 75 67 70 71 85 89 October ___ __ 84 90 92 99 67 69 74 77 Coal 76 58 64 69 89 96 November 89 99 67 78 Coke 50 47 52 57 78 95 December 89 156 66 62 Grain and grain products 95 89 111 90 99 87 Livestock 62 30 34 37 57 62 Year 85 68 Forest products 43 42 43 44 49 52 Ore. 71 108 112 125 149 160 M iscellaneous 82 74 74 75 92 97 1 Based on daily average sales—with allowance for changes from Merchandise 1 65 61 61 62 65 65 month to month in number of Saturdays and in number of Sundays and holidays. Adjustment for seasonal variation makes allowance in March and April for the effects upon sales of changes in the date of Easter. 1 In less-than-carload lots. Back figures.—Department store sales, see BULLETIN for August NOTE.—For description and back data see pp. 522-529 of BULLETIN 1936, p. 631, and for October 1938, p. 918; department store stocks, see for June 1937. Based on daily average loadings. Basic data compiled BULLETIN for March 1938, p. 232. by Association of American Railroads. Total index compiled by combining indexes for classes with weights derived from revenue data of the Interstate Commerce Commission. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1129 DECEMBER 1939 FEDERAL RESERVE BULLETIN WHOLESALE PRICES, BY GROUPS OF COMMODITIES [Index numbers of the Bureau of Labor Statistics. 1926=100] Other commodities All Farm com- Year, month, or week m ti o e d s i- p u r c o t d s - Foods Total H p l i r e d o a e d t s h u a e c n r ts d p T ro e d x u ti c le ts F m li u g a e h t l e t r i a n i 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 al g s c C a d l h r s u e m g an s i d - i f n H u g r o n g u i o s s o h e- d - s l M an is e c o e u l s - 1929 95.3 104.9 99.9 91.6 109.1 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 61.4 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—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 67.6 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 August 75 0 61 0 67 2 80.1 Q2. 7 67.8 72 6 93 2 89.6 74.6 85.6 73.3 September 79.1 68.7 75.1 82.1 98.5 71.7 72.8 94.8 90.9 77.3 86.6 76.6 October... 79.4 67.1 73.3 83.8 104.6 75.5 73.9 95.8 92.8 78.1 87.8 77.6 Week ending— 1939—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 9?. 8 67.4 73.6 93.5 89.5 74.2 87.0 73.0 August 26 . 74.8 61.1 66.7 80.4 92.6 67.4 73.2 93.5 89.7 74.2 87.0 73.1 September 2 75.3 62.7 68.5 80.4 9? 7 67.2 73.2 93.5 89.7 74.4 87.0 73.2 September 9 78 4 68.1 74.5 81.7 96.0 68.4 74.0 94.6 90.1 75.9 87.0 76.1 September 16. 79.3 69.7 75.5 82.4 98.3 71.4 74.1 94.9 90.7 77.1 87.1 76.1 September 23 79.6 69.5 75.1 83.0 100.4 72.3 74.2 95.3 91.0 77 9 88.8 76.6 September 30 79 5 69.3 74.4 83.3 104.1 73 4 74.4 95 2 91.2 78.5 89.1 76.7 October 7__ 79.0 66.8 72.9 83.7 105.2 73.8 74.8 95.1 91.8 77.9 89.1 77.1 October 14 78.9 66.7 72.7 83.7 105.0 74.2 74.4 95.3 92.5 77 fi 89.2 77.0 October 21 79.4 67.5 73.2 84.1 105.4 74.8 74.6 96.3 92.5 78.0 89.2 77.2 October 28 ... . 79.2 67.2 72.3 84.2 105.5 75.2 74.6 96.3 93.0 77.9 89.3 77.4 November 4 79.3 67.5 72.3 84.4 104.4 75.6 74.7 96.2 93.1 77.7 89.6 77.9 November 11 79.3 67.8 72.4 84.4 104.5 75.6 74.7 96.2 93.1 77.9 89.7 78.2 November 18 79.1 67.3 72.3 84.4 104.3 75.6 74.8 96.1 92.9 77.8 89.7 78.2 1938 1939 1938 1939 Subgroups Subgroups Oct. July Aug. Sept. Oct. Oct. July Aug. Sept. Oct. FARM PRODUCTS: METALS AND METAL PRODUCTS: Grains 50.8 52.3 51.5 65.1 61.6 Agricultural implements 95.4 93.4 93.5 93.5 93.4 Livestock and poultrv 76.2 69.7 66 0 76.3 70.5 Farm machinerv 96.8 94.7 94 7 94.7 94.6 Other farm products 65.0 60.7 60.1 64.6 66.1 Iron and steel. 96.9 95.1 95.1 95.5 96.0 FOODS: Motor vehicle5 1 95.0 93 0 92 5 92.1 93.9 Dairy products 71.6 64.6 67 9 74.5 78.9 Nonferrous metals 76 2 73 3 74 6 84 7 85.3 Cereal products 75.1 71.9 71.9 78.8 78.0 Plumbing and heating 78.5 79.3 79.3 79.3 79.3 Fruits and vegetables 57.5 62.0 58 5 62.8 60.2 BUILDING MATERIALS! Meats 83 3 75.3 73 7 81 0 74 9 Bri(Vk" and til p. 91 1 90 6 90 5 91 0 91.5 Other foods _ 70.4 60.4 60.3 71.7 70.2 Cecdent 90.7 91.5 91.3 91.3 91.3 HIDES AND LEATHER PRODUCTS: Luinber 90 3 91.8 91 8 93.7 98.0 Shoes . 100 3 100.8 100 8 L01 8105.7 Paint and paint materials 81 1 82 2 82 1 84 7 85 7 Hides and skins 82.1 76.9 77.2 97.4 112.4 Plumbing andheating 78.5 79.3 79.3 79.3 79.3 Leather 84.6 84.1 84.0 92.0 97.8 Structural stee1 L07. 3 107.3 107.3 107.3 107.3 Other leather producis. . . 96.9 95.6 97.1 97.1 99.3 Other building materials 91.7 89.6 89.5 90.3 91.9 TEXTILE PRODUCTS: CHEMICALS AND DRUGS: Clothing 81.6 81.2 81.5 81.7 83.2 Chemicals 80.5 78.2 77.5 81.2 82.1 Cotton goods 64.6 65.1 65.5 70.4 74.3 Drugs and pharmaceuticals 74.9 71.8 71.7 72.8 74.4 Hosiery and underwear _ 59.9 60.2 61.5 62.8 63.5 Fertilizer materials 67 5 67.5 67.2 69.2 70.6 Silk and rayon 30 9 40.2 39 5 43 4 46 2 MiXP.d fp.rtili7P.rs 73 4 72 6 72 9 72 6 72 6 Woolen and worstedgoods 76.3 75.4 75.5 84.0 91.3 HOUSEI'URNISHING GOODS: Other textile product5 . 65.3 64.1 63.7 69.8 78.3 Furnishings 89.3 90.0 90.0 91.7 93.7 FUEL AND LIGHTING MILTERIALS Furniture __ _ _ 82.1 81.0 81.1 81.3 81.7 Anthracite.. 79.1 72.6 72.1 72.5 75.3 MISCELLANEOUS: Bituminous coal 98.7 95.8 96.0 96.7 98.2 Auto tires andtubes ._ __ 57.4 60.5 60.5 60.5 60.5 Coke 104.2 104.2 104 2 L04.2 108.0 Cattle feed 66 5 72 4 68 4 93 4 82 9 Electricity. 81.8 78.1 75.8 Paper and puln 81.7 79.9 80.0 81.8 86.3 Gas 87 1 89.0 86 7 87.2 Rubber, crude 35.3 34.7 34.9 47.7 42.7 Petroleum products.. 53.8 52.2 51.7 53.3 54.0 Other miscellaneous 81.2 81.3 81.3 82.8 85.4 1 Preliminary revision. 2 Revised series. Back figvr<?.— Tor n ontl ly and arrival ir dej>e>" of grcujs, see Annual Eepcrt for 1937 (table 86); for indexes of subproups, see Annual Report for 1937 (table 87). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1130 FEDERAL RESERVE BULLETIN DECEMBER 1939 NOVEMBER CROP REPORT, BY FEDERAL RESERVE DISTRICTS [Based on estimates of the Department of Agriculture, by States, as of November 1, 1939] i [In thousands of units] Cotton Corn Winter wheat Spring wheat Federal Eeserve district Produc- Estimate Produc- Estimate Produc- Estimate Produc- Estimate tion Nov. 1, tion Nov. 1, tion Nov. 1, tion Nov. 1, 1938 1939 1938 1939 1938 1939 1938 1939 Bales Bales Bushels Bushels Bushels Bushels Bushels Bushels Boston 7,633 7,663 68 63 New York 29,317 27, 343 8,324 6,876 108 74 Philadelphia 52, 521 50,942 19,810 17,067 139 165 Cleveland 199, 591 208, 517 52, 956 41, 692 120 87 Richmond 1,048 1,382 138, 232 139, 741 27, 263 24,092 Atlanta 2,623 2,399 194,289 146, 651 6,572 5,521 Chicago 1,038, 749 1,124, 515 67, 734 56, 474 1,847 1,922 St. Louis _ 2 3, 386 3 3, 381 332,179 337,888 66,081 55,903 143 97 Minneapolis. _ _ ___ 227,136 277,850 30, 268 24,788 189, 588 152,933 Kansas City 467 415 224, 284 170, 505 287, 758 223,169 10,148 4,918 Dallas. 3,819 3,675 91, 577 92, 550 36,020 30,402 102 97 San Francisco 600 593 6,730 6,898 83,851 64,726 41, 901 28, 379 Total 11,943 11, 845 2, 542, 238 2, 591,063 686, 637 550, 710 244,164 188, 735 Oats Tame hay Tobacco White potatoes Federal Reserve district Produc- Estimate Produc- Estimate Produc- Estimate Produc- Estimate tion Nov. 1, tion Nov. 1, tion Nov. 1, tion Nov. 1, 1938 1939 1938 1939 1938 1939 1938 1939 Bushels Bushels Tons Tons Pounds Pounds Bushels Bushels Boston 6,326 6,765 3,523 3,339 22,847 34,853 47,316 47,359 New York 27, 708 27,380 5,737 4,470 1,842 2,277 32,123 30,081 Philadelphia 19, 222 16,723 2,376 1,954 32,110 36,085 22,996 21,745 Cleveland 49,425 46,240 5,478 5,013 105,694 115,981 20,554 20,301 Richmond _ . 20,949 21,848 3,729 3,471 746,014 977,060 27, 261 23,146 Atlanta 15,276 14,606 3,419 3,198 188,189 196,164 15,466 14,589 Chicago 430, 768 368,452 18, 379 17, 396 33, 239 33,364 53, 457 48, 954 St. Louis _ . 51, 571 42,659 6,825 7,103 241, 254 256,432 13,978 11,869 Minneapolis 235, 287 253,130 10,745 9,868 2,733 2,809 43,347 42, 517 Kansas City 134,530 76,908 7,002 6,433 4,612 4,384 26,160 29,157 Dallas 39, 563 35, 363 1,403 1,351 3,778 3,393 San Francisco 23, 214 31,156 11,683 11,427 65,181 68,654 Total 1,053,839 941, 230 80, 299 75,023 1, 378, 534 1, 659,409 371,617 361, 765 1 Figures for spring wheat, oats, and tame hay from estimates for Oct. 1, for winter wheat from Aug. 1. No estimate made for Nov. 1. 2 Includes 16,000 bales grown in miscellaneous territory. 3 Includes 18,000 bales grown in miscellaneous territory. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1939 FEDERAL RESERVE BULLETIN 1131 STATISTICS FOR FEDERAL RESERVE CHART BOOK Chart 1939 Chart 1939 book book page Oct. Oct. Nov. Nov. Nov. Aug. Sept. Oct 18 25 1 15 WEEKLY FIGURES MONTHLY FIGURES Index numbers RESERVES, GOLD, AND Wednesday fig d u o r l e la s; r s in billions of BUSINESS CONDITIONS 1923-25=100 CURRENCY Wholesale commodity prices:4 R T T E G M M R x r r e e o e o e e c s q l m n a a d e e B B U N R u C C s s r e s b i v i i s e s u u . y h o e r l l e t e s w e l r r l i u S o r r s s e y y c i d e n c n . b r a b b s d Y k v t a c d G r g e r o c a i e e a n e y o s r o i n u o s s k p v c r r 2 c h k e g v c k o b o e i r u h c ' u s s t a t v b y r C l t i — n n e a e a t s s t k s i t b d l e e t i t a s i e a y c o o d n t n u 2 n — t c 2 a k r e l i s t 2 s t o i 2 t e a s l . ._ .. 3 3 3 , , , 7 7 6 6 5 5 7 9 7 3 7 5 5 3 3 1 1 ( 2 6 2 7 2 3 5 7 1 1 l . . . . . . . . . . . . . . ) 4 8 3 3 0 9 0 7 5 2 3 5 0 7 0 1 2 3 1 0 5 4 0 2 1 5 1 2 1 1 2 3 2 7 2 6 5 1 1 7 . . . . . . . . . . . . . . 4 3 7 5 0 2 0 3 7 9 7 3 5 0 2 0 7 9 3 2 4 5 4 4 1 0 3 3 P 1 1 P 5 2 2 6 2 7 2 1 7 1 . . . . . . . . . . . . . . 0 4 8 5 3 3 7 7 9 2 3 5 1 0 7 1 4 4 5 7 2 2 5 0 1 5 4 0 P 1 1 5 p 2 6 2 2 2 7 1 1 7 . . . . . . . . . . . . . . 4 2 6 4 3 0 7 7 5 7 3 1 3 7 0 6 9 1 4 7 2 5 3 6 1 2 5 2 P 1 1 2 2 6 2 P 2 7 1 1 7 5 . . . . . . . . . . . . . . 2 5 4 0 3 3 5 6 7 7 2 5 2 7 8 6 2 1 4 8 0 5 1 2 0 9 4 1 F F F [ M n a r a e d a c c i n u t t T U D N E F G g o o u s h r o n r u o r n e t f a y y t r g a t r r n i - i n a t a m c A F F O l c a d e p e c a l b t l a l o a u d m e . u a a t l n r l . h o p r r y n r e d m p a S c e l i d r 6 y r n o b l o r o o s t o g a a l d m p l c e y t l d u r o s e p 6 m m o i c . s m r n _ d t : o o e i g _ u m d o n d s c n t i u 6 o t t c i s d « e t i s i t o i n e : s _ 6 _ _ . _ . _ _ _ . 31, 3 4 3 4 4 3 3 3 3 3 3 3 3 3 1 3 5 5 3 2 7 2 7 1 1 7 2 2 1 1 8 7 6 6 9 4 8 7 6 9 7 7 0 0 0 5 1 9 7 9 6 7 9 3 2 0 3 4 . . . . . . . . 1 0 0 8 2 7 4 2 0 1 1 1 7 6 8 8 4 7 7 6 9 7 1 1 0 9 2 4 5 8 3 9 0 8 3 7 1 1 . . . . . . . . 1 1 1 6 9 5 7 0 P1 P P P P P 2 8 1 1 6 6 8 7 8 7 h 0 3 9 0 0 0 3 7 9 3 i . 3 1 . . . . . . 4 8 1 3 3 3 3 Department store sales 6 47 89 91 90 REPORTING MEMBER BANKS Department store stocks 5 47 67 68 69 Total, 101 cities: Loans and investments. 14 22.56 22.66 22.73 22.84 23.01 In millions of dollars Adju I L n s o t v e a e d n s s t d . m e e m n a ts n d 1 1 4 4 1 8 4 . . 4 1 2 4 1 8 4 . . 4 1 8 8 ' 1 8 4. . 2 5 1 2 1 8 4. . 3 5 1 2 1 8 4 . . 5 4 5 7 Con T st o r t u a c l t ion contracts _ awarded:7 41 299 297 P314 New T U D F Y o i . o d m r m o S e e e p r . i e k g o s G d n s t e C i i o c p t b v s i o a t ' b y t s n a i : k d t n s e k b p a o b l s a a i n l t a s c n e c s e ._ s 1 1 1 1 1 5 5 5 5 5 1 7 5 8 . . . . . 8 2 5 5 8 8 4 7 4 0 1 7 5 8 . . . . . 8 2 7 5 8 5 5 2 4 2 1 7 5 8 . . . . . 9 2 5 7 5 6 5 5 3 4 1 5 7 8 . . . . . 9 2 6 5 7 6 5 5 4 2 1 8 5 8 . . . . . 1 2 5 6 7 2 6 3 0 1 xp E E O G E or e x x e t t h s c p s n i e e o e d a s r r r s n e a t s n d l o t i f ( i i m i m a e n l x p c . p p o l o . o r r r t r t e s t s - s : e _ xports _ ) _ . 4 4 4 4 4 1 1 9 9 9 2 1 1 1 5 7 7 2 7 1 6 5 3 6 2 1 1 1 1 8 8 2 7 0 9 1 5 2 7 P P P P P 1 3 2 1 1 9 3 1 2 1 0 2 5 4 7 100 c U B O C it r o . t i o h e m S k e s . m r e o G r s e u s e o r ' t c c v s l u i i o ' a t d r a l i e o n t l i b s o N e l s a i e n g w s a ti Y o o n r s k .. : 1 1 1 1 6 6 6 6 4 1 1 . . . . 4 6 1 4 3 6 9 3 4 1 1 . . . . 5 6 1 4 0 6 7 7 4 1 1 . . . . 5 6 1 4 8 7 5 7 4 1 1 . . . . 6 6 1 4 4 7 9 7 4 1 1 . . . . 1 6 7 4 9 8 3 6 Inco T T S O m a o o t e l h t t a a a e p r l r l i a 6 e u * y s n m a a n e d d n ju t w s s : t a e g d es 5 5 5 5 5 0 0 0 0 3 5 2 5 , , , , 8 6 1 4 1 6 4 0 1 6 5 0 6 3 2 5 , , , , 0 2 6 9 1 2 7 0 0 6 4 0 P P P v 6 3 6 2 , , , , 7 0 2 2 9 0 0 1 1 9 4 8 U C O o . t h m S e . m r G s e e o r c c v u i ' a t r l i o t l i b o e l s a i n g s a tions.. 1 1 1 7 7 7 6 2 2 . . . 3 1 6 7 5 2 6 2 2 . . . 3 6 1 5 3 5 6 2 2 . . . 3 6 1 4 4 5 6 2 2 . . . 3 6 1 3 6 5 6 2 . . 4 1 0 5 iash T L C i o r f v o a t e a r p m s l s t o i c n k c o a m nd e : products.. 5 5 5 1 1 1 2 3 6 9 0 4 3 8 3 8 4 3 4 4 3 4 7 7 4 33 7 8 4 MONEY RATES AND SECURITY Averages of daily figures*; per cent Government payments... 51 42 66 82 MARKETS per annum F.R.bankdiscountrate,N.Y. 19 1.00 1.00 1.00 1.00 1.00 OTHER In billions oj dollars Commercial paper 19 .69 .69 .69 .69 .63 Bankers' acceptances 19 .44 .44 .44 .44 .44 entral gold reserves: U U . . S S . . T T r r e e a a s s u u r r y y b n i o l t ls e s 2 2 1 1 . . 7 0 0 5 . . 0 6 5 5 . . 0 6 5 9 . . 0 6 5 8 . . 0 6 5 3 U En n g it l e a d n d States 16 1 . . 6 1 5 6 1 0 6. ) 93 17 0 . ) 09 U. S. Treasury bonds 21, 25 2.55 2.51 2.52 2.51 2.47 France 2.71 2.71 2.71 Corporate Aaa bonds 25 3.14 3.09 3.07 3.01 2.99 Netherlands .77 .75 P. 76 Corporate Baa bonds 25 4.88 4.84 4.83 4.85 4.87 U. d e S b . t — G t o o v ta 't l interest-bearing 20 40.35 40.34 40.53 Wednesday figures; in unit indicated Bonds 20 27.31 27.35 27.39 Notes 20 7.24 7.23 7.23 Stock prices, total < 27, 29 96 97 95 94 94 Bills 20 1.31 1.31 1.41 Industrial 27 113 115 112 111 110 Special issues 20 4.49 4.46 4.50 Railroads 27 33 34 32 32 31 Public utilities 27 86 88 87 87 87 Jan.- Apr.- July- Volume of trading 2 (mill, QUARTERLY FIGURES Mar. June Sept. shares) 29 1.15 1.31 1.21 1.16 1939 1939 1939 Brokers' loans (mill, dollars) 29 548 593 603 594 BUSINESS CONDITIONS Figures for week3; in unit indicated In millions 0] dollars Who A F F le l o a l s o r a m c d l o s e m p c r o m o m d o u m d c i o t t i s d e i s t y prices:4 3 3 3 3 3 3 6 7 7 7 9 3 . . . 5 4 2 6 7 7 7 2 9 . . . 3 2 2 7 6 7 9 2 7 . . . 3 3 5 7 6 7 9 7 2 . . . 3 8 4 7 7 6 9 2 7 . . . 1 3 3 Do is m s N R u e e e e s w s f t u , i c n t o d c t i o a n r l g poration security 2 1 8 7 9 2 6 3 1 - •• 5 3 6 3 6 0 2 2 ' • 6 • ' 5 9 4 5 2 8 6 Other commodities _ 33 84.1 84.2 84.4 84.4 84.4 Steel plant operations Per cent per annum (% of capacity) 38 90.3 90.2 91.0 92.5 93.5 Automobile production Customers' rates:8 (thous. cars) 38 70.1 78.2 82.7 86.2 86.7 New York City 23 2.13 2.15 2.04 Electric power production 7 other Northern and (mill. kw. hrs.) 39 2,494 2,539 2,537 2,514 2,514 Eastern cities 23 3.05 3.05 2.78 Total freight-car loadings 11 Southern and Western (thous. cars) 39 861.2 834.1 805.9 786.0 771.4 cities 23 3.77 3.62 3.31 v Preliminary. r Revised. • Estimated. 1 Less than $5,000,000. • Points in total index of manufacturing production. » Averages of daily figures, see footnote1. f Three-months moving average adjusted for seasonal variation. »Figures are shown under the Wednesday date included in the weekly period. « Revised series. See pp. 963-969 of the November 1939 BUL- «Index numbers, 1926=100. LETIN. • Adjusted for seasonal variation. 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 p. 1132 of this BULLETIN. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1132 FEDERAL RESERVE BULLETIN DECEMBER 1939 BANKING STATISTICS FOR CALL REPORT DATES—CHART BOOK SERIES [In billions of dollars] 1937 1939 Chart book page Mar. June Dec. Mar. June Sept. Dec. Mar. June Oct. 31 30 31 30 28 31 29 30 All banks in the United States: Total deposits and currency.. 56.79 57.42 56.83 56.78 56.74 57.64 59.12 •59.17 *60.95 , 990 Time deposits 25.69 25.96 26.26 26.34 26.27 26.18 26.30 26. 47 P26. 72 J>26,800 Demand deposits adjusted..._ 25.23 25.26 24.05 24.13 24.39 25.19 26.10 P26. 13 J>27. 39 29, 170 Currency outside banks 5.42 5.53 5.69 5.50 5.47 5.49 5.82 P5.69 P6.05 *>6, 230 Member banks: Demand deposits adjusted- 11 21.35 21.40 20.39 20.51 20.89 21.60 22.29 22.36 23.59 25.12 Time deposits 11 11.16 11.35 11.52 11.59 11.56 11.46 11.51 11.60 11.72 11.75 Interbank balances.. _ 11 5.75 5.30 5.44 5.62 6.10 6.09 6.51 6.82 7.10 <8.25 Loans and investments 11 32.53 32.74 31.75 31.52 30.72 31.63 32.07 32.10 32.60 33.08 Investments, total. 11 18.83 18.45 17.79 17.98 17.78 18.69 18.86 19.05 19.46 19.61 U. S. Government obligations, total 12 12.72 12.69 12.37 12.45 12.34 13.01 13.22 13.35 13.78 13.81 Direct obligations.. 13 10.86 10.87 10.57 10.63 10.22 10.71 10.88 10.69 10.95 10.89 Guaranteed obligations 13 1.86 1.82 1.80 1.83 2.13 2.30 2.34 2.66 2.83 2.92 Other securities, total 12 6.11 5.77 5.42 5.52 5.44 5.68 5.64 5.70 5.69 5.79 State and local government securities.. 13 2.33 2.13 2.03 2.19 2.13 2.30 2.45 2.55 2.55 2.76 Other domestic 13 3.53 3.40 3.21 3.15 3.13 3.19 3.01 2.96 2.94 ) Foreign securities 13 .25 .23 .18 .18 .18 .18 .18 .18 .19 Loans, total... 11 13.70 14.29 13.96 13.55 12.94 12.94 13.21 13.05 13.14 13.47 Security loans, total12 12 4.28 4.37 3.70 3.54 3.32 3.30 2 1.75 1.57 1.47 Brokers' loans 13 1.42 1.54 .95 .88 .70 .71 .97 .84 .73 Loans on securities (excluding brokers' loans; 13 2.82 2.83 2.75 2.67 2.61 2.59 2.78 .73 .74 Real estate loans I 12,13 2.44 2.51 2.55 2.56 2.61 2.66 2.72 2.75 2.83 Other loans, total iJ 12 6.97 7.41 7.71 7.45 7.01 6.97 2 8.74 8.73 8.85 Commercial loans 2 13 6.22 6.66 7.00 6.75 6.40 6.36 2 5.45 5.53 5.57 Open-market paper 13 .71 .64 .64 .61 .49 .48 .44 .42 .42 Loans to banks 13 .10 .12 .07 .10 .12 .13 .12 .10 .06 All other loans* 32.73 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. 2 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. 4 Partly estimated. 5 Detailed breakdown of loans and investments now available on June and December dates only. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTERNATIONAL FINANCIAL STATISTICS 1133 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1134 FEDERAL RESERVE BULLETIN DECEMBER 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 i t t e e s d 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 - ti N on a- al B.I.S. g t A i e n r n a - - Brazil I B n is r d h i i t a - g B a u ri l a - C a a d n a - Chile China Bank 1934—December_ 21,051 8,238 1,584 5,445 590 573 624 403 275 19 134 1935—December. 21, 604 10,125 1,648 4,395 611 438 454 444 275 19 189 10 1936—December. 22, 630 11, 258 2,584 2,995 632 490 655 501 275 20 188 8 1937—December. 23, 964 12, 760 2,689 2,564 597 930 648 469 274 24 184 16 1938—November. 25, 287 14, 312 2,690 2,435 584 1,008 699 434 274 24 186 18 December. 25, 468 14, 512 2,690 2,435 581 995 699 431 274 24 192 18 1939—January- 24,003 14, 682 1,042 2,435 582 995 699 431 274 24 197 19 February . 24,175 14, 874 1,042 2,435 588 974 680 431 274 24 206 20 March 24, 387 15, 258 1,066 2,435 518 909 640 428 274 24 210 21 April 24, 964 15, 791 1,066 2,574 520 834 598 428 274 24 212 21 May 25,140 15,957 1,067 2,574 524 823 598 428 274 24 214 21 June 25, 290 16,110 1,067 2,574 540 800 598 428 274 24 213 21 July 25, 512 16, 238 1,162 2,574 573 769 595 427 274 24 212 21 August 26,118 16, 646 1,162 2,714 614 769 585 431 274 24 218 21 September. P25, 235 16, 932 1 2,714 615 752 585 P431 *>274 24 218 P21 October_-_ 2. 277 17,091 1 2,714 611 *>757 579 P431 P274 P24 212 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 l k c o h - ia o- m D a e r n k - Egypt m G a e n r y - 2 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 a r y - Peru l P an o d - 1934—Dec... 112 55 40 518 394 61 19 96 1935—Dec... 112 55 34 270 425 84 20 84 1936—Dec... 91 55 26 208 463 98 20 75 1937—Dec... 92 55 24 210 261 82 20 83 1938—Nov... 83 55 27 210 164 96 19 84 Dec... 83 55 27 193 164 94 20 85 1939—Jan 83 55 27 193 164 96 19 85 Feb... 83 55 27 193 164 96 19 85 Mar... 67 55 29 193 164 96 19 85 April.. 66 55 29 193 164 107 19 84 May.. 65 55 31 193 164 107 19 84 June... 62 55 31 193 164 107 19 84 July... 60 55 30 193 164 107 19 84 Aug. _. 60 55 28 193 164 107 19 84 Sept... 58 P55 28 193 107 P19 Oct.... P28 193 P107 Government gold reserves1 not included Other countries—Continued in total for 52 countries End of month Po g r a t l u- Ruma- A So fr u ic th a Spain * S d w en e- T k u ey r- g U u r a u y - Y sl u av g i o a - c o o t 1 h u 6 e n r - 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 t m g ed - France g B iu e m ltries « 1934—Dec. 68 104 184 740 159 22 154 1934—Dec... 31 1935—Dec. 109 212 735 185 24 158 1935—Dec... 53 1936—Dec. _ 114 203 718 240 26 175 1936—Dec. _ 2 934 1937— Dec. 120 189 718 244 29 169 1937—Dec... 3 1, 395 81 1938—N D o e v c . . . 69 1 1 3 3 2 3 2 2 2 2 0 0 5 5 2 2 5 5 3 3 2 2 1 1 2 2 9 9 1 12 2 5 5 1938— J S M u e n p a t e r . . . . . . . . 1,4 7 8 5 9 9 "62 1939—Jan.. 133 220 525 331 29 127 Oct.... * 103 Feb.. 134 219 525 331 30 126 Nov.__ 130 Mar. 134 221 525 332 30 124 Dec... 80 331 April 135 218 525 339 30 126 1939—Jan... J 381 J J M S A O u u e u c a l n p t g y y e t . . . . . - . . 69 P1 1 1 1 1 1 4 3 3 4 3 4 9 7 6 8 7 9 P 2 2 2 2 2 2 1 1 1 2 3 3 9 8 9 2 4 4 5 5 5 5 5 2 2 2 2 2 5 5 5 5 5 3 3 3 3 3 3 4 5 4 4 5 3 8 7 6 4 5 2 P 3 3 3 2 3 2 0 0 0 9 0 9 P 6 6 6 8 8 8 P P 1 1 1 1 1 1 3 3 2 3 3 3 1 1 6 3 5 6 A J M M J F u u e p l a a n b y r y r . e . _ . . _ . . _ . _ - . . . " "~ 1 8 5 5 4 " " 1 ( ,7 ) 32 4 4 4 5 6 7 5 5 5 7 5 9 Sept. _ 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 1 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 Rentes Fund; Belgium—Treasury. through Nov. 1938. Figure for Dec. 1938 officially reported and carried forward. Gold in Swiss and Dutch Funds and in some 4 Figure for Aug. 1, 1936, carried forward through Mar. 1938; Apr. 1938 figure officially re- other central reserves not reported. ported and carried forward. 2 Figure for Mar. 1937, first date reported. & These 16 countries are: Albania, Algeria, Australia, Austria through Mar. 7, 1938, Belgian 3 Figure for Sept. 1937. Congo, Bolivia, Danzig through Aug. 31, 1939, Ecuador, El Salvador, Estonia, Guatemala, 4 First date reported. Finland, Latvia, Lithuania, Morocco, and Siam. 6 Transferred: from Bank to Account, $1,648, NOTE.—For back figures and description of table see BULLETIN for June 1933, pp. 368-372, 000,000 on Jan. 6, and $1,162,000,000 on Sept. 6, and July 1936, pp. 544-547; also see footnotes to table in BULLETIN for Aug. 1936, p. 667, and Dec. 1939; from Account to Bank, $26,000,000 on Mar. 1937, p. 1262. 1, and $94,000,000 on July 12, 1939. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1939 FEDERAL RESERVE BULLETIN 1135 GOLD PRODUCTION Outside U. S. S. R. [In thousands of dollars] Estimated Production reported monthlyworld 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 ia - A W fr e ic st a B C e o l n g g ia o n U St n a i t t e e s d i Canada Mexico Co b l i o a m- Chile Au li s a t ra- 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 2,360 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 $1=15-5/21 grains of gold 9/10 fine; i. e.,an ounce of fine gold=$S5 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.. 1,118,480 957,175 425, 649 28, 532 24, 670 8,470 178,143 165, 379 32,306 18, 225 10,290 54, 264 11,247 1938—July 98, 551 84, 908 36, 222 2,410 2,067 716 16, 781 14, 689 4,241 1,748 752 4,330 951 August 98,089 84,140 36,622 2,415 2,053 716 16, 590 14,571 2,941 1,515 986 4,771 958 September. 97, 439 83, 275 36, 237 2,365 2,048 743 16, 937 14, 291 2,062 1,812 1, 019 4,816 946 October 96, 938 82, 954 36, 449 2,445 2,174 725 16, 320 14, 449 2,265 1,622 906 4,642 956 November. 98, 787 84, 802 35, 842 2,381 2,204 728 18, 579 14, 445 2,353 1,628 930 4,783 930 December.. 98/845 84, 234 36, 007 2,318 2,240 751 16,068 15, 231 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 '94,540 79, 728 35, 613 2,252 2,349 729 15, 260 14,238 1,733 1,513 830 4,301 912 May r98, 484 83, 415 37, 970 2,355 2,323 779 15,167 15,133 1,794 1,614 696 4,649 936 June '99, 450 83, 541 37,065 2, 369 2,277 756 14, 460 15,287 . 3,216 1,551 968 4,684 910 July 102, 680 87,078 37, 952 2,395 2,395 739 16, 099 15,402 3, 627 1,551 1,583 4,399 936 August P107, 322 P91, 502 38, 494 P2, 431 2,379 731 16, 796 15, 722 6,519 1,735 Pl,059 P4, 714 923 September.. P106, 629 P90, 513 P37, 444 P2, 431 P2, 379 *>731 19,576 P15, 050 PS, 529 1,803 *>989 P5, 694 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. r Revised. 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, Febiuary 1939, p. 151, June 1938, pp. 539-540, 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 1939 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 r e 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 en e- S l z a w e n r i d - t- C a a d n a - Me ic x o - 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 th i u e l e n l s r - 1934 1 1,131,994 499,870 260, 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, 3353,498 75, 268 47,054 1936. 1,116, 584 174,093 573, 671 3, 351 71,006 2 7,511 72, 648 39, 966 11,911 21,513 2\3 ,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, 427 314,,713 246, 464 50, 762 30,179 1,973, 5691, 208,728 81,135 15,488 163,049 60,146 1,363 76, 315 36, 472 10, 557 27,880 391,,162 168,740 16,159 ! 68,376 1938—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.. 520,896 377, 984 47, 21911,521 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 V "" 3,822 219,150 December. 240, 526 101, 707 37,395 1,979 46,185 731 2,550 2,107 2,655 li, 425 1,797 2 22, 207 1939—January 156, 345 52,050 1, 1,6 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 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 7,665 1,649 2,114 2,179 4,844 5,528 4,944 » 7, 073 May 429, 404 302,667 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 1Q 5,628 15,196 4,150 2,123 3,022 5,034 10,938 2,760 6,416 August 259,921 163,738 2 22, 640 34, 299 3,956 2,120 2, 775 10,931 9,259 4,512 September. 326,074 162,450 86 1 1,482 120,837 653 2,102 3,947 5,474 16,425 4,065 « 8, 552 October 69,726 10,182 2,9£0 9,940 1,794 3,188 8,420 12,497 2,703 5 18,012 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. «Includes $4,503,000 from Argentina. 4 Includes $5,158,000 from Hong-Kong. 5 Includes $6,363,000 from Italy; $4,087,000 from Hong-Kong. NOTE.—For gross import and export figures and for additional countries see table on p. 1104. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1136 FEDERAL RESERVE BULLETIN DECEMBER 1939 GOLD MOVEMENTS—Continued [In thousands of dollars at approximately $35 a fine ounce] United Kingdom Net imports from or net exports (—) to: Total Year or net im month ports South All e o x ( r p - n o ) e rt t s U S n ta i t t e e s d France m G a e n r y - i g B iu el m - N la e n th d e s r- U.S.S.R. Au li s a tra- A d W R f e r h s e i o i c s a - a t , , B I r n i d ti i s a h B O c t o r r t i i u h e t n i e s s - r h S d w e e n - e S r w la it n z d - c o t o r t i h u e e n s r - Africa 1934 716, 269 -497,166 348,190 121,017-13,585 32, 575 41, 790 335,253 206, 693 62,397 -9,123 2 88, 228 1935 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 3,998 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 3-55,032 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—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 -898 9,990 5,649 528 7,358 1,815 531 1,511 1,347 1939—Jan... _ -36, 514 -50, 814 Q -33 211 -253 5,672 681 5,671 304 1,374 -3, 790 704 3,762 Feb -148,005 -160,218 -68 11 396 779 5,613 736 3,451 151 -1,101 -1 399 1,847 Mar -259, 984 -306, 839 -183 88 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 -437 73, 394 -425 May. -294,077 -287, 762 -262 4, 018 2,008 49,004 5,631 143 45, 394 2,9751 -145, 856 -3, 793 32, 921 1,504 June -51, 591 -127,293 -412 -38 415 22,968 52, 636 2,388 911 -2 153 -3,318 July -147,332 -182,145 -330 -1 196 8,856 38, 423 3,078 697 -1,138 -575 -14,393 Aug -318,511 -223,370 2,691 1 -7,491 -11,275 55 49,120 4,606s-114,284 -4, 966 —4, 618 -8, 980 Germany Switzerland British India Net imports from or net exports (—) to: Increase in India: Y m e o a n r th or e n o x T p e r p ( t o o ) o n r t i r t a m e t s s l t ^ - i e m o T x ( r n p o p ) e n o o t t a e r r t l 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 iu el m - Italy N la e e n r t d - h s - m G a e n r y - 1 c o t o A r th i u e l e l n s r - i e m o T x r ( n p o p ) e o n o t t a r r e t l t t s s p t I i r G n o o o d n d l i u i d a n c- s d e I r I r i n e n a v - - n es e f a e o r g d r m I o e n l i f a g d o r n r k- p i h r n o i I g l v n s d a 7 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 -219, 670 1935.. 42, 969 -230, 788 64r -54,858 -181,725 -13,940 25, 542 342 -9, 607 s 2, 812-161,872 11,468 -6 -150,398 1936_. -1,868 122, 278 -9,127 -1,714 39, 305 14,531 51, 299 4,600 -2, 990 9 26, 368-121,066 11, 663 -109,403 1937.. -3,718 -56,946 -51,1"" 11, 940 -45, 061 27, 739 -657 6,553-16,461 10, 609 -61, 723 11, 607 -50,075 1938.. -35, 224 -1,245 -1,128 76, 620 -74, 375 -1,067 11,314 25,125 -32, 745 -4, 989 -54, 661 11, 247 12,078 -55,494 1938—Aug... -6, 864 -1,338 -2 10, 464 -8,382 -1,283 -37 3,824 -6, 267 342 -7, 082 958 -6,124 Sept.. -36, 626 9,024 -7 15,940 418 117 o 924 1,884 -10,251 -957 946 -11 Oct.__ -16,134 1,454 -1,140 907 -616 -158 2,551 -56 3 -7, 622 956 1,909 -8, 575 Nov... -10,129 913 228 13 33 -117 994 -265 31 -2, 283 930 5,690 -7,043 Dec.__ -3, 765 -5, 690 -1,854 -139 -166 -2, 884 -438 -209 211 995 4,479 -3, 273 1939—Jan.. _ 33 -3, 786 549 -149 1-2, 294 -1,274 -7 -125 940 11, 423 -10,608 Feb._. -11,940 -2,112 -21 -763 24 -213 556-1,581 -97 -15 -3, 288 863 7,749 -10,174 Mar.__ 9,999 -37, 332 -10,786 1,547 -1,990 -1,509 -576 -8, 327 -14,830 -860 -5,113 938 -3 4,812 -8,984 Apr.__ 9,967-162,645 -54, 266-104, 650 -4, 805 -864 10, 819-3,876 -2,431 -2, 573 -3, 394 912 5,197 -7, 679 May.. -5, 807 8,059 -2, 329 -5,419 -73 19, 585 -718 -1,138 -239 -4, 202 937 1,839 -5,104 June.. -284 -10,696 -8, 589 93 o 725 -3,116 -76 -2,049 910 5,749 -6, 888 July.. 7,765 -2,r • 1,033 -1,153 10,800 355 -171 -244 -10,264 942 -10,270 Aug... 5,275 2 4,334 -1,929 —91 2,815 1,234 -887 -204 -5, 274 2,512 -6,863 Sept. _ -2, 730 -1,506 -1,030 -1 -25 89 -243 -11 Oct.?.. -2, 744 -915 -457 -4, 574-1,372 1,830 2,744 p Preliminary. c Corrected. 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. 3 Includes $67,655,000 exported to Central and South America. 4 Figures for April and May include exports to Canada of $45,972,000 and $144,910,000 respectively. 5 Includes net exports to Canada of $115,515,000. • Through March 1935 gold held by government; subsequently, gold held by Reserve Bank of India to which government gold was transferred. 7 Figures derived from preceding columns; gold movement plus production minus increases in Indian reserves and gold earmarked for foreign account in India. 8 Includes net import of $19,926,000 from Czecho-Slovakia and net export of $15,374,000 to Austria. 9 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

1137 DECEMBER 1939 FEDERAL RESERVE BULLETIN 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 From Jan. 2, 1935, through— Total Total C f b e u a n n n t d k r s al Other b i a n f a b u n r U n k o d . i a n s S d g . se o R f c f u u e U n t r u i d . t r i s S e n s . : s I e n f c f o f u u l r o n e r w i i d g t s i n e o s f : b I b n r a o fl l k o a e n w r c a e i g s n e in N. Y. 1935—Dec. 31 , 1,412.5 603.3 9.8 593.5 361.4 125.2 316.7 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—Dec. 28 3 779 2 1,432 7 216 3 1,216.5 478.1 610.0 1, 210. 9 47.6 1939—Mar. 29 __ _ 4,134. 7 1, 693. 0 256.8 1,436. 2 550.5 646.7 1,180. 6 63.9 June 28 4, 595. 6 2, 048. 3 361.8 1, 686. 5 609.5 664.5 1,199. 3 74.0 Aug. 2 _ 4, 637. 2 2, 093. 9 327.1 1, 766. 8 598.8 680.2 1,182. 2 82.1 Aug. 9 4, 664.8 2,139. 1 323.2 1,815.8 612.0 652.8 1,176. 5 84.5 Aug. 16 4,711.8 2,182. 2 305.5 1, 876. 7 624.8 654.5 1,164.9 85.4 Aug. 23 4,830 0 2,287 3 352 5 1,934 9 635 1 656 9 1,165.1 85.5 Aug. 30 __ 4, 865. 3 2, 334. 2 371.6 1, 962. 6 622.6 657.8 1,165. 7 85.0 TABLE 2.—TOTAL CAPITAL MOVEMENT, 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 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—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—Mar. 29 4,134.7 1, 203.1 366.8 383.6 587.6 150.2 24.7 536.8 3, 252. 9 185.1 443. 5 206.4 46.8 June 28 4, 595. 6 1, 360. 2 439.7 401.0 599.2 149.5 29.5 604.2 3, 583. 3 230.5 500.2 223.8 57.9 Aug. 2 4, 637. 2 1, 337. 7 441.9 405.7 606.8 151.5 31.2 617.3 3, 592. 0 259.1 516.1 207.2 62.7 Aug. 9 4, 664. 8 1, 326. 5 444.3 409.7 607.5 152.4 31.4 619.8 3, 591. 6 267.1 521.7 220.3 64.0 Aug. 16 4,711.8 1,341.6 451.0 407.7 600.6 151. 7 32.2 635.4 3, 620. 3 270.7 523.2 236.1 61.4 Aug. 23 4,830.0 1, 386. 4 449.9 408.8 618.7 149.8 30.9 664.3 3, 708. 7 275 8 530.2 248.8 66.4 Aug. 30___ . 4,865. 3 1, 326. 3 473.4 412.1 647.2 148.8 26.1 665.1 3, 699.1 29L8 536.1 259. 4 78.9 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—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—Mar. 29 1, 693. 0 401.8 187.4 129.9 233.4 -10.9 -3.9 267.8 1, 205. 5 136.5 179.8 139.9 31.3 June 28 2, 048. 3 535.2 252.3 132.0 227.1 -14.5 -6.6 320.0 1, 445. 5 191.5 242.0 131.5 37.8 Aug. 2 2,093. 9 517.0 252.1 138.9 234.9 -15.3 -5.5 332. 8 1, 454. 9 205.4 258.6 133.8 41.2 Aug. 9 2,139. 1 511.7 253.9 144.6 234.6 -15.5 -5.2 335. 6 1, 459. 7 232.4 261.4 142.7 42.9 Aug. 16 2,182. 2 529. 5 262.6 143.0 226.2 -15.7 -4.1 350. 1 1,491.6 235.6 260.7 154. 5 39.8 Aug. 23 2, 287. 3 570.1 263.6 140.9 243.0 -17.5 -5.2 379 2 1, 574.1 240.2 265.5 162.9 44.7 Aug. 30 2, 334. 2 522.3 283.7 144.8 270.0 -18.5 -7.4 384*. 1 1, 579. 0 256.1 268.9 172.8 57.5 TABLE 4.—UNITED STATES BANKING FUNDS ABROAD, 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. 31 361.4 208.8 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—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—Mar. 29 550.5 209.2 64.9 -1.5 4.5 149.8 10.8 30.9 468.6 49.9 66.5 -28.1 -6.4 June 28 609.5 236.7 68.1 -1.0 3.6 153.8 17.7 39.9 518.8 42.2 55.7 -2.9 -4.3 Aug. 2 598.8 239.3 70.3 -4.4 4.9 157.5 17.9 40.6 526.1 39.6 54.1 -18.7 -2.3 Aug. 9 612.0 237.8 71.1 -6.0 5.0 158.3 17.7 40.6 524.5 48.3 56.2 -14.3 -2.7 Aug. 16 624.8 234.2 69.8 4.7 5.4 158.2 17.4 40.8 530.6 48.8 58.7 -10.8 -2.4 Aug. 23 635.1 236.5 67.9 8.4 5.7 158.1 17.2 40.8 534.6 49.5 59.9 -6.5 -2.5 Aug. 30 622.6 225.2 70.0 8.4 5.6 158.2 14.6 35.1 517.2 52.3 61.9 -5.7 -3.0 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

1138 FEDERAL RESERVE BULLETIN DECEMBER 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—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—Mar. 29 646.7 127.6 26.3 28.7 38.4 34.9 23.1 174.9 453.8 -25.8 172.6 36.2 9.9 June 28 664.5 128.2 28.2 29.4 41.7 35.8 23.8 180.4 467.4 -26.5 176.0 37.1 10.4 Aug. 2 680.2 126.7 28.3 29.7 42.3 36.0 24.3 180.6 468.0 -13.5 177.5 38.2 10.0 Aug. 9 652.8 126.4 28.4 29.7 42.3 36.1 24.3 180.7 468.0 -41.6 177.8 38.5 10.1 Aug. 16 654.5 126.6 28.3 29.8 42.5 36.2 24.3 181.2 468.8 -41.3 178.0 38.7 10.3 Aug. 23 656.9 127.2 28.3 29.8 43.0 36.3 24.3 181.5 470.3 -41.2 178.6 38.8 10.4 Aug. 30 657.8 127.4 28.3 29.7 43.2 36.4 24.4 181.8 471.2 -41.5 178.8 38.8 10.5 TABLE 6.—DOMESTIC SECURITIES, BY COUNTRIES Net Purchases by Foreigners From th r J o a u n g . h 2 — , 1935, Total U K d n o i i n t m g ed - 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. 31 316.7 149.8 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—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—Mar. 29 1,180. 6 448.3 72.3 217.7 301.7 -23.4 -5.5 56.5 1,067. 6 18.8 24.6 57.9 11.7 June 28 1,199. 3 442.0 74.4 231.0 315.0 -25.2 -5.5 56.9 1, 088. 4 13.9 25.7 57.6 13.7 Aug. 2 1,182. 2 434.7 73.5 229.5 311.3 -26.5 -5.6 56.0 1, 072. 9 18.9 25.2 51.9 13.3 Aug. 9 1,176. 5 431.5 72.4 231.1 311.0 -26.6 -5.6 55.6 1,069. 4 18.1 24.6 51.1 13.2 Aug. 16 1,164. 9 431.7 71.7 220.7 311.0 -26.8 -5.6 55.4 1,058. 2 17.4 24.6 51.3 13.3 Aug. 23 1,165.1 432.5 72.3 220.0 312.2 26.9 -5.6 55.4 1,059. 8 16.9 24.6 50.5 13.3 Aug. 30 1,165. 7 433.5 72.2 220.6 313.4 -27.1 -5.7 56.7 1,063. 6 13.0 24.7 50.6 13.7 TABLE 7.—BROKERAGE BALANCES1, 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 6.0 (2) 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 -.9 9.1 .3 .4 22.6 -7.6 -4.2 2.1 (3) 1937—Dec. 29 47.5 11.5 11.5 5.0 10.8 .1 5.0 44.0 3.5 -.5 .5 (3) 1938—Dec. 28 47.6 13.2 12.6 6.8 8.8 .2 5.3 46.7 2.6 -.9 -1.0 .2 1939—Mar. 29 63.9 16.3 16.0 8.8 9.6 -.2 .2 6.6 57.4 5.6 .1 .6 .3 June 28 74.0 18.1 16.8 9.6 11.9 -.3 .1 7.0 63.2 9.3 .8 .4 .3 Aug. 2 82.1 19.9 17.7 12.0 13.4 -.2 .2 7.3 . 70.2 8.8 .7 1.9 .5 Aug. 9 84.5 19.2 18.5 10.3 14.5 (2) .2 7.3 70.1 10.0 1.7 2.3 .4 Aug. 16 85.4 19.6 18.6 9.6 15.5 2 .2 7.9 71.2 10.2 1.3 2.3 .4 Aug. 23 85.5 20.1 17.7 9.8 14.7 -.2 .2 7.5 69.8 10.4 1.7 3.2 .4 Aug. 30 85.0 17.8 19.1 8.6 15.0 _ 2 2 7.4 68.0 11.9 1.9 3.0 .3 1 For explanation see BULLETIN for May 1937, pp. 395-396. 2 Inflow less than $50,000. s Outflow less than $50,000. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1139 DECEMBER 1939 FEDERAL RESERVE BULLETIN 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. 28i. 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 K. 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—Dec. 28- 2,003.9 438.8 190.9 98.4 217.4 19.9 22.6 249.9 1, 237.8 235.2 254.9 243.7 32.4 1939—Mar. 29.. 2, 264. 2 473.9 219.5 143.9 247.1 18.7 14.8 314.7 1, 432. 7 236.6 300.7 250.9 «= 43. 3 June 28. _. 2, 619. 5 607.4 284.4 146.0 240.8 15.1 12.2 366.9 1, 672. 7 291.7 363.0 242.5 49.7 Aug. 2__. 2, 665.1 589.1 284.2 152.9 248.5 14.3 13.3 379.7 1, 682.1 305.5 379.5 244.8 53.2 Aug. 9.... 2, 710. 3 583.8 286.0 158.5 248.3 14.2 13.6 382.5 1, 686. 9 332.5 382.3 253.7 54.9 Aug. 16__ 2, 753. 4 601.7 294.7 157.0 239.8 13.9 14.6 397.0 1, 718. 8 335. 8 381.6 265.5 51.8 Aug. 23... 2, 858. 6 642.3 295.7 154.8 256.7 12.1 13.6 426.1 1,801.3 340.4 386.4 273.8 56.7 Aug. 30... 2, 905. 4 594.5 315.9 158.7 283.6 11.1 11.4 431.0 1, 806. 2 356.2 389.8 283.7 69.4 TABLE 9—SHORT-TERM FOREIGN ASSETS, 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 - 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 I 166.2 29.5 20.9 12.6 467.2 18.7 149.2 854.3 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 I 201.3 94.1 15.9 8.5 178.8 10.7 60.2 569.5 84.4 124.4 46.2 2. 6 Reported by Banks in United States 1934—Dec. 5 2__ 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 57.8 392.1 59.4 141.1 67.2 12.9 1937—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—Dec. 28__ 628.0 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—Mar. 29.. 553.6 83.0 13.8 20.1 3.6 81.4 16.4 48.8 267.1 46.3 99.5 125.7 14.9 June 28— 494.6 55.4 10.7 19.7 4.5 77.4 9.5 39.9 217.0 54.0 110.3 100.5 12. 8 Aug. 2... 505.3 52.8 8.5 23.1 3.1 73.7 9.3 39.2 209.7 56.7 111.8 116.3 10.8 Aug. 9_... 492.1 54.4 7.6 24.7 3.1 72.8 9.5 39.2 211.3 48.0 109.8 111.9 11.1 Aug. 16... 479.3 58.0 9.0 13.9 2.7 73.0 9.8 38.9 205. 2 47.5 107.3 108.4 10.9 Aug. 23... 469.0 55.7 10.8 10.2 2.3 73.1 10.0 39.0 201.1 46.7 106.1 104.1 11.0 Aug. 30... 481.4 66.9 8.7 10.3 2.5 73.0 12.6 44.7 218.6 44.0 104.1 103.3 11.5 c Corrected. 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

1140 FEDERAL RESERVE BULLETIN DECEMBER 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 i and ad- ties liabili- Coin Notes vances Bankers' Public Other ties 1929—Dec. 25. 145.8 260.0 26.3 22.3 84.9 379.6 71.0 8.8 35.8 17.9 1930—Dec. 31. 147.6 260.0 38.8 49.0 104.7 368.8 132.4 6.6 36.2 18.0 1931—Dec. 30. 120.7 275.0 31.6 27.3 133.0 364.2 126.4 7.7 40.3 18.0 1932—Dec. 28. 119.8 275.0 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 22.2 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 35.5 8.5 94.7 424.5 72.1 12.1 37.1 18.0 1936—Dec. 30. 313.7 200.0 46.3 17.5 155.6 467.4 150.6 12.1 39.2 18.0 1937—Dec. 29. 326.4 220.0 41.1 9.2 135.5 505.3 120.6 11.4 36.6 18.0 1938—Nov. 30. 326.4 200.0 1.2 45.6 17.6 110.8 480.8 97.1 23.1 37.2 17.8 Dec. 28. 326.4 230.0 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 35.1 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 37.1 6.2 129.5 489.1 91.4 27.0 37.6 17.7 May 31.. 226.2 300.0 26.4 8.0 140.7 499.8 82.4 38.3 37.1 17.8 June 28.. 226.4 300.0 27.4 6.8 136.7 499.0 101.4 15.4 37.0 17.9 July 26. _. 4 246.4 300.0 35.5 8.0 128.0 510.9 91.4 26.0 36.7 18.1 Aug. 3O._ 263.0 300.0 33.5 6.4 137. 8 529.5 90.1 31.1 39.0 18.2 Sept. 27.. 5.1 580.0 38.3 2.5 144.2 541. 8 107.1 19.8 40.5 18.3 Oct. 25... .2 580.0 53.0 127.7 527.1 116.8 12.6 39.2 17.7 Assets Liabilities Domestic bills Loans on- Deposits Bank of France Ad- For- vances Note Other (Figures in millions of francs) Gold£ eign to Short- Other circula- liabilich e a x n - ge m O ar p k e e n t7 c S i p a e l - 8 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 9 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~" 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__ 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—Nov. 24.. 87,264 7,032 1,611 11,021 20, 627 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. '092,266 756 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, 264121,391 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 Aug. 31.. «97, 266 218 9,396 1,708 15,009 20, 577 2,412 3,805 16,016 142, 359 3,304 18,038 2,708 Sept. 28_. 97, 266 212 9,734 1,958 14,830 22, 777 930 3,661 16,482 144, 562 2,342 18,022 2,926 Oct. 26__ 97, 266 85 10, 038 2,007 25,473 336 3,576 17.100 144, 379 2,004 14, 790 3,006 i 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. Since Sept. 6, 1939, however, an increase in fiduciary issue (and securities held as cover) to £580,000,000 has been authorized by British Treasury under Section 8 of Currency and Bank Notes Act, 1928 (see BULLETIN for August 1928, pp. 567-569). For status of fiduciary issue before Mar. 1, 1939, see BULLETIN for April 1939, p. 339. i On Jan. 6, 1939, £200,000,000 of gold transferred to British Exchange Equalization Account. 8 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. * On July 12, 1939, £20,000,000 of gold transferred from Exchange Account to Bank of England. 6 On Sept. 6, 1939, £279,000,000 transferred from Bank of England to Exchange Account. 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. 7 Negotiable bills of Caisse Autonome and bills bought under authority of decree of June 17, 1938 (see BULLETIN for Aug. 1938, p. 650). s 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). • 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; and under authority of Convention of Sept. 29, 1938, approved by decree of Sept. 1, 1939 (see BULLETINS for July 1936, p. 536; Aug. 1937, p. 720; June 1938, p. 452; Aug. 1938, p. 650; Jan. 1939, p. 30, and Nov. 1939, p. 976). " On April 20, and again on Aug. 3, 1939, 5,000,000,000 francs of gold transferred from Stabilization Fund to Bank of France. 11 Figures not yet available. 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

1141 DECEMBER 1939 FEDERAL RESERVE BULLETIN CENTRAL BANKS—Continued Assets Liabilities Reichsbank Reserves of gold and Bills (and Securities (Figu r r e es ic h in m m ar i k ll s i ) ons of re f T o s o e re r t v a ig l e n s exch G an o g ld e * i T n ch c r b e e lu i a c l d s k ls u i s n ) r g , y Se lo c a u n ri s ty E as c l i o g v n i e o b r t l e e Other O as t s h e e ts r ci N t r i c o o u t n l e a- Deposits l O ia t t i b h e i s e li r - 1929—Dec. 31 2,687 2, 283 2,848 251 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 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—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 Aug. 31 77 10, 272 60 1,013 296 1,964 10,907 1,480 1,294 Sept. 30 77 10,105 24 1,324 393 1,963 10, 995 1,602 1,287 Oct. 31 77 9,358 35 1,440 366 2,375 10, 820 1,520 1,312 1 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. 1939 1938 1939 1938 Central bank Central bank [Figures as of last report [Figures as of last report date of month] Oct. Sept. Aug. Oct. date of month] Oct. Sept. Aug. Oct. National Bank of Albania (thou- National Bank of Belgium (millions sands of francs): of belgas) : Gold. 7,567 7,575 Gold reserve __ _ 3,603 3,628 3,622 3,318 Foreign assets 39, 531 18,896 Other gold and foreign exchange 845 942 932 905 Loans and discounts 4, 965 5,583 Discounts 552 440 374 420 Other assets 8,286 4,515 Loans 126 171 273 48 Note circulation 25,034 10, 978 Other assets, . 549 553 472 458 Other sight liabilities 21, 515 12,844 Note circulation __ _ _ 5,370 5,401 5,299 4,542 Other liabilities 13, 799 12, 746 Demand deposits—Treasury 1 4 4 54 Central Bank of the Argentine Other 181 206 247 434 Republic (millions of pesos): Other liabilities 124 124 124 119 Gold reported separately. _. 1,224 1,224 1,224 Central Bank of Bolivia (thousands Other gold and foreign exchange. 135 105 95 of bolivianos) : Negotiable Government bonds 277 282 41 Gold at home and abroad 56, 695 Other assets 220 238 268 Foreign exchange 92. 663 Note circulation 1,163 1,135 1,053 Loans and discounts 23, 655 Deposits—Member bank 497 430 372 Securities—Government 402, 753 Government ___ _ 93 169 109 Other 4,037 Other 8 3 1 Other assets 43, 321 Foreign exchange sold forward 40 60 41 Note circulation 283, 655 Other liabilities 55 52 54 Deposits. _. 280,129 Commonwealth Bank of Australia Other liabilities 59, 331 (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 2,003 Securities 43, 995 41, 500 37, 305 Foreign exchange 705 837 Banking department: Loans and discounts 2,409 1,259 Coin, bullion, and cash. 1,869 1,467 1,463 Government debt. 3,417 3,468 London balances 15, 640 15, 874 20,199 • Other assets 1,386 1,134 Loans and discounts 18, 060 17, 620 14, 935 Note circulation 4,426 3,115 Securities 62, 250 59,550 57, 250 Deposits _ _ 3,206 3,318 Deposits 91,355 87, 262 89, 303 Other liabilities 2, 291 2, 267 Note circulation 51, 025 48, 525 48, 030 Bank of Canada (thousands of Ca- Bank of Belgian Congo (millions of nadian dollars): Belgian francs): Gold 225, 675 225, 675 209, 775 181,146 Gold 166 Sterling and United States ex- Loans and discounts 470 change _____ 46, 564 44, 448 52, 860 36, 364 Other assets 399 Canadian Gov't securities: Note circulation 363 2 years or less 193, 862 155, 054 111,018 169, 675 Deposits . 532 Over 2 years _ _ _. . 55,039 63, 588 52,078 44,989 Other liabilities 140 Other assets _ _ _ 7,893 7,234 7,125 10,969 Note circulation _ 224, 401 212, 490 179, 704 178,080 Deposits-Chartered banks... 234,102 221,127 201,318 228,460 Dominion Government 39,089 38, 228 30, 695 25, 363 Other 18, 432 11, 380 11, 216 1,682 Other liabilities 13,008 12,774 9,923 9,558 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1142 FEDERAL RESERVE BULLETIN DECEMBER 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] Oct. Sept. Aug. Oct. date of month] Oct. Sept. Aug. Oct. Central Bank of Chile (millions of Central Reserve Bank of El Salvapesos): dor (thousands of colones): Gold 146 146 145 Gold 13, 208 13, 206 Discounts for member banks 81 67 57 Foreign exchange 5,172 3,421 Loans to government _ 754 754 766 Loans and discounts... __ __ 837 1,082 Other loans and discounts 240 231 166 Government debt and securities 5,104 5,492 Other assets 66 43 43 Other assets . _ _ 1,092 948 Note circulation _ _ _ _ 884 845 771 Note circulation 14, 490 13, 644 Deposits— Deposits 7 374 6 047 Bank _ 191 157 182 Other liabilities 3,550 4 458 Other 54 86 74 Bank of Estonia (thousands of Other liabilities 157 153 149 krooni): Bank of the Republic of Colombia Gold8 40, 904 40, 904 34, 292 (thousands of pesos): Foreign exchange (net) 7, 370 9,454 15, 786 Gold 37,233 37 383 35 453 41 747 Loans and discounts 45, 048 31, 476 26, 697 Foreign exchange 4,944 5,544 7,543 7,893 Other assets 38,115 40, 293 31, 351 Loans and discounts 22 040 21 131 19 434 17 527 Note circulation __ 69, 461 56, 981 54, 217 Government loans and securities. 37,087 37,105 37,167 46, 548 Demand deposits 26, 774 28, 027 32, 229 Other assets 31 986 31 018 31 787 27 359 Other liabilities _ 35, 203 37,119 21 680 Note circulation. _ _ 53, 795 54,069 53, 628 54, 301 Bank of Finland (millions of mark- O D t e h p e o r s i l t i s abilities 3 4 1 7 , , 8 6 5 4 5 1 3 46 2 , , 0 0 5 6 2 0 3 4 1 5 , , 9 7 6 8 9 6 4 4 2 4 , , 0 7 4 3 0 4 ka G a) o : ld4 1,181 1,183 620 National Bank of Czecho-Slovakia ' Foreign assets 2,214 2,487 2,382 (millions of koruny): Loans and discounts 1,269 1,155 1,377 Gold 1,659 1,698 2,690 Domestic securities 331 332 247 Foreisrn exchance 793 796 786 Other assets. _ _ 274 304 348 Discounts 1,895 1,855 3,682 Note circulation _ _ _ 2,547 2 262 2 068 Loans 1,019 804 1,161 Deposits—Treasury 132 242 273 Other assets 4 585 4 354 1 443 Other 561 906 989 Note circulation 6,438 6,056 7,130 Other liabilities 2,028 2,050 1,645 Demand deposits „ 851 702 987 Bank of Greece (millions of drach- Other liabilities 2,661 2,750 1,645 mas): Bank of Danzig (thousands of Gold and foreign exchange (net) 3,126 3,097 3,410 gulden): Loans and discounts 13,651 12, 388 8,291 Gold 22, 862 31,182 Government obligations 4,207 4,211 4,315 Foreign exchange of the reserve 1,165 455 Other assets 1,993 2,164 2,115 Other foreign exchange 197 451 Note circulation 10, 639 9,980 7,190 Loans and discounts 31, 661 22, 367 Deposits 10, 340 9,993 8,740 Other assets 2,263 3,074 Other liabilities 1,996 1,887 2,201 Note circulation 54,190 38, 551 National Bank of Hungary (mil- Demand deposits 25, 900 16, 816 lions of pengo): Other liabilities 19, 010 19,012 Gold*.__ _ 124 124 124 84 National Bank of Denmark (mil- Foreign exchange reserve 83 98 101 115 lions of kroner): Discounts 625 627 576 479 Gold 117 117 118 Loans—To Treasury _ 343 342 343 190 Foreign exchange 39 89 112 Other 35 32 43 14 Discounts 26 25 22 Other assets ___ _ _ _ _ 334 331 352 272 Loans—To Government agencies 101 97 163 Note circulation __ 1,032 1,087 1,038 794 Other 182 150 81 Demand deposits.. 178 148 181 126 Securities 218 189 146 Certificates of indebtedness.. 94 99 99 66 Other assets 86 108 110 Other liabilities 240 220 221 169 Note circulation 480 452 435 Reserve Bank of India (millions of Deposits 118 127 142 rupees): Other liabilities 169 T95 176 Issue department: Central Bank of Ecuador (thou- Gold at home and abroad 444 444 sands of sucres): Sterling securities 595 622 Gold 39, 031 34, 051 Indian Gov't securities 374 324 Foreign exchange (net) 7,193 5,887 Rupee coin 755 709 Loans and discounts 60, 011 52, 269 Note circulation 1,789 1,772 Other assets 18, 459 20, 569 Banking department: Note circulation 64, 742 67, 558 Notes of issue department 379 327 Demand deposits 44, 252 29, 554 Balances abroad 74 29 Other liabilities 15, 701 15, 661 Treasury bills discounted 4 2 National Bank of Egypt2 (thou- Loans to Government 6 31 sands of pounds): 68 56 Gold 6,545 6,545 Other assets 13 13 Foreign exchange 1,708 1,244 Deposits 428 339 Loans and discounts 5,744 8,626 Other liabilities 116 119 British, Egyptian, and other Bank of Japan (millions of yen): Government securities 27,010 29 225 Gold 501 501 501 Other assets 11, 973 7,138 Special foreign exchange fund 300 300 300 Note circulation 22,186 22, 299 Discounts 451 387 476 Deposits—Government 3,945 3,703 Loans—Government 3 3 3 Other 18, 248 18,180 Other 140 58 63 Other liabilities 8,603 8,597 Government bonds 1,805 1,850 1,625 Other assets 397 447 245 Note circulation 2,634 2,461 2,157 Deposits—Government.. 544 652 554 Other... _ _ _ Other liabilities 308 351 397 iName changed to National Bank of Bohemia and Moravia, Prague, by decree of March 31, 1939. 2 Items for issue and banking departments consolidated. 8 Gold revalued in part on March 6, 1939 at 0.2802 gram fine gold per kroon. 4 In accordance with law of December 22,1938, gold revalued on December 31,1938, at approximately 0.02 gram fine gold per markka. 8 In accordance with law XXV of 1938 gold revalued on January 15, 1939, at 0.1754 gram fine gold per pengo and resulting increment included in other assets. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1143 DECEMBER 1939 FEDERAL RESERVE BULLETIN CENTRAL BANKS—Continued Central bank 1939 1938 Central bank 1939 1938 [Figures as of last report [Figures as of last report date of month] Oct. Sept. Aug. Oct. date of month] Oct. Sept. Aug. Oct. Bank of Java (millions of guilders): Bank of Portugal (millions of Gold 129 129 117 escudos): Foreign bills 9 9 3 Gold. 920 920 918 Loans and discounts 70 67 64 Other reserves (net) 495 456 493 Other assets 92 91 114 Non-reserve exchange 225 219 172 Note circulation 199 193 189 Loans and discounts... 415 413 f'435 Deposits 75 77 83 Government debt 1 036 1 036 1 039 Other liabilities 26 25 26 Other assets 1 249 1 250 1,318 Bank of Latvia (millions of lats): Note circulation 2,374 2,230 2,171 Gold.. -_ _ 98 98 98 83 Other sieht liabilities 952 1 040 1 099 Foreign exchange reserve... . _ 31 35 35 42 Other liabilities 1,013 1,024 1,105 Loans and discounts 180 176 153 148 National Bank of Rumania (mil- Other assets. _ _ 45 47 52 60 lions of lei): Note circulation 119 118 89 83 Gold 20,393 20, 267 18,078 Deposits 184 187 204 202 Special exchange accounts 4,762 4,195 4,207 Other liabilities 51 51 45 48 Loans and discounts 21,869 17, 930 12, 230 Bank of Lithuania (millions of litu): Special loans 2 1,382 1,441 1,850 Gold 58 60 71 10,197 10,183 10, 500 Foreign exchange 9 6 4 Othfir assets 13, 700 12,490 10, 687 Loans and discounts 145 132 114 Notfi circulation 47, 977 42, 351 34, 581 Other assets _ 42 43 33 "OeTriflnrj deposit^ 8,933 11,004 12, 063 Note circulation 170 173 143 Other liabilities 15, 393 13,150 10, 908 Deposits 45 39 55 South African Reserve Bank (thou- Other liabilities 38 30 24 sands of pounds): Netherlands Bank (millions of guil- Gold 28, 398 26, 910 26, 560 ders) : Foreign bills 7,125 6,421 7,170 Gold. 1 104 1 129 1 481 Other bills and loans 18 2 719 1,822 Silver (including subsidiary coin) 7 17 20 Other assets 18, 225 15, 848 15, 403 Foreign bills 2 2 4 Note circulation 20 545 16 712 17 755 Discounts 90 48 17 Deposits 29, 880 31, 676 29, 951 Loans 249 260 302 Other liabilities 3,341 3,511 3,249 Other assets 74 68 67 Bank of Sweden (millions of Note circulation 1,142 1,132 1 046 kronor): Deposits—Government 140 Gold 732 786 782 707 Other 336 344 658 Foreign assets 452 529 608 890 Other liabilities 48 48 47 Discounts _ 14 13 11 13 Reserve Bank of New Zealand Loans 111 78 60 28 (thousands of pounds): Domestic securities 207 194 186 86 Gold _.. _ . 2,802 2,802 2,802 Other assets 511 535 545 462 Sterling exchange reserve. 5,312 5,690 7,708 Note circulation 1,248 1,259 1,126 1,028 Advances to State or State un- DeTiRnd deposits 573 703 884 985 dertakings 20, 843 19, 634 10 881 Other liabilities 207 173 183 172 Investments 3,816 3, 658 2,732 Swiss National Bank (millions of Other assets __ __ _ _ 598 357 328 francs): Note circulation 16, 648 15, 802 14, 438 Gold 2,395 2,419 2,419 2,873 ' Demand deposits 14, 710 14, 377 8,347 Foreign exchange 291 285 288 302 Other liabilities 2,014 1,962 1 666 Discounts 95 94 63 111 Bank of Norway (millions of Loans. 54 49 43 26 kroner) * Other assets 686 684 684 707 Gold _ 237 236 211 Note circulation 2,036 2,082 2,024 1,736 Foreign assets 78 128 219 Other sight liabilities 835 802 828 1,641 Total domestic credits and Other liabilities 649 648 646 642 securities 384 309 212 Central Bank of the Republic of Discounts 182 136 73 Turkey (thousands of pounds): Loans 75 47 33 Gold 36, 837 36,906 36, 871 Securities 126 126 106 Foreign exchange—Free 3 11 1 Other assets 27 43 39 In clearing accounts 2,419 3,556 17, 500 Note circulation 538 505 456 Loans and discounts 205, 985 154,080 92, 058 Demand deposits—Government 21 21 29 Securities 197, 852 193, 539 189, 951 Other 81 109 115 Other assets 28,109 28,053 34,173 Other liabilities 86 81 81 Note circulation 288, 521 229, 521 196, 611 Central Reserve Bank of Peru Deposits 64,072 65,461 64,978 (thousands of soles): Other liabilities 118, 612 121,165 108, 965 Gold and foreign exchange.. _ 51, 654 Bank of the Republic of Uruguay Discounts 24, 045 (thousands of pesos): Government loans 84 614 Issue department* Other assets 5,283 Gold and silver 86, 235 86, 235 103, 585 Note circulation 106,119 Note circulation __ _ 87, 296 89, 548 86, 520 Deposits 43, 629 Banking department: Other liabilities 15 848 Gold 21,003 20,826 2,316 Bank of Poland (millions of zlotys): Notes and coin 52, 327 50,194 48, 718 Gold 433 Loans and discounts 112,004 108, 563 97, 596 Foreign exchange 13 Other assets 106, 349 108, 389 69, 209 Loans and discounts 1,034 Deposits 88, 948 87, 450 80, 373 Securities 127 Other liabilities 202, 735 200, 521 137, 466 Special gov't debts 0) National Bank of the Kingdom of Other assets 360 Yugoslavia (millions of dinars): Note circulation 1,476 Gold 1,987 1,987 1,924 1,893 Other sight liabilities 121 Foreign exchange 616 582 509 442 Other liabilities 370 Loans and discounts 2,573 2,494 2,132 1,896 Government debt __ 2,835 2,400 2,231 2,243 Other assets._. 3,944 3,961 3,332 3,457 Note circulation 9,244 9,108 7,986 7,012 Other sight liabilities 1,546 1,095 1,350 2,049 Other liabilities 1,164 1,221 791 869 1 Not reported separately on bank statement; included with loans and discounts. 2 Agricultural and urban loans in process of liquidation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1144 FEDERAL RESERVE BULLETIN DECEMBER 1939 BANK FOR INTERNATIONAL SETTLEMENTS [In thousands of Swiss gold francs 1] 1939 1938 1939 1938 Assets Liabilities Oct. 31 Sept. 30 Oct. 31 Oct. 31 Sept. 30 Oct. 31 Gold in bars 17, 532 16, 523 29, 303 Demand deposits (gold) ___ 10,664 10,688 9,347 Cash on hand and on current account with banks _ 15,851 27, 337 27, 935 Short-term deposits (various curren- Sight funds at interest 13,814 11, 536 14,434 cies) : Central banks for own account 20,175 40,169 110,941 Rediscountable bills and acceptances Other 3,148 3,002 8,549 (at cost) 158,019 176,062 201,065 Time funds at interest 26, 575 32, 979 52,080 Long-term deposits: Special accounts.. 229, 644 250, 906 254,888 Sundry bills and investments 214, 265 226,008 248, 243 Other liabilities 188, 659 188, 706 202, 204 Other assets _ 6, 233 3,027 12, 869 Total liabilities __ 452, 290 493, 472 585,929 Total assets 452, 290 493, 472 585, 929 i See BULLETIN for December 1936, p. 1025. MONEY RATES IN FOREIGN COUNTRIES [Per cent per anum] Netherlands (Amster- United Kingdom (London) Germany (Berlin) dam) Month a 3 c B c a m e n p o k t n a e n t r h c s s ' es T m b r i e o l a l n s s t , u h 3 r s y Da m y o -t n o e - y day o a B n l l a d o n e w k p a e o n r s c s i ' e ts d P i r s r a c i t v o e a u l t n e t M 1 o m ne o y n t f h or D m ay o - n to ey -d 1 ay d P is r r i c a v o te a u t n e t M 1 o m ne o y n t f h or 1929—October... 6.13 6.19 5.45 7.28 9.06 8.06 5.15 4.52 1930—October... 2.09 2.13 1.65 4.66 5.93 5.15 1.59 1.48 1931—October... 5.68 5.46 4.36 8.00 9.84 9.21 2.76 3.07 1932—October... .71 .71 3.87 5.00 4.94 .37 1.00 1933—October... .73 .75 3.87 5.50 5.11 .50 1.00 1934—October... .77 .68 .75 3.81 5.13 4.63 .59 1.00 1935—October. _. .63 .62 .75 3.04 3.26 3.13 4.70 5.00 1936—October. __ .56 .54 .75 2.94 2.82 2.82 1.87 2.51 1937—October. __ .55 .53 .75 2.88 2.91 2.81 .13 .50 1938—October.. _ .70 .68 .75 2.88 2.88 2.70 .21 .50 1939—April 1.40 1.36 2.88 2.88 2.36 1.11 1.24 May _ .73 .70 .75 2.77 2.53 2.46 .72 .80 June .75 .76 .77 2.79 2.50 2.71 .49 .75 July .79 .77 .75 2.75 2.50 2.65 .51 .75 August 1.58 1.92 1.35 2.75 2.50 2.50 1.03 1.53 September 3.51 3.23 2.72 2.75 2.51 2.94 3.66 October 1.88 1.77 1.71 1.90 2.24 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 l o m 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 i c a v o t a e u t n e t d P is r r i c a v o t a e u t n e t d P is r r 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 a e p e r e - r Da m y o -t n o e - y day L m oa o to n n s t 3 h u s p Dis b co il u ls nted ov m e C o rn a n l i e l g y ht 1929—September 3.38 4.94 3.50 7.01 5.48 2.92 1930—September 1.50 2.39 1.99 5.48 M7M 5.48 3.65 1931—September 1.80 2.44 1.50 5.47 8-1034 5-6 4. 93-5. 48 2.56 1932—September 1.50 3.00 1.00 5.50 ^8 4-4% 3^-534 5. 66-6. 21 3.47 1 1 1 9 9 9 3 3 3 5 4 3 — — — S S S e e e p p pt t t e e e m m m b b b e e e r r r. 2 1 1 . . . 4 5 5 0 0 0 2 2 1 . . . 2 1 8 7 5 8 2 1 1 . . . 8 5 1 5 0 3 4 3 3 . . . 0 8 5 0 7 5 43 % 4 4 - - 7 7V V 2 2 3 33 3 4 4 3 2 2 3 M 3 4 - - - 5 4 5 H 5.11-5 5 5 . . . 1 1 4 1 1 8 2 2 2 . . . 5 6 6 6 2 3 1 1 9 9 3 3 7 6 — — S S e e p p t t e e m m b b e e r r 1 1 . . 0 9 0 8 1 1 . . 0 3 0 8 3 3. . 5 3 4 8 4 5 . . 5 0 0 0 4 4 - - 6 & 3 A 4 2% 2 2^ ^ 5 -5 4 4 . . 7 7 5 5 2 2. . 4 8 6 1 1938—September 1.00 3.26 2.65 5.00 2H-5 4.56 2.33 1939—March 1.00 3.28 1.94 5.00 4.47 2.54 April 1.00 4.28 5.00 4^-63 134 4.47 2.47 May 1.00 3.99 5.00 134 4.47 2.37 June 1.00 2.79 5.00 134 4.47 2.39 July 1.00 2.30 5.00 134 August 1.00 2.24 95 September 1.25 2.70 23-3-5 1 Beginning September 1939 figures are those published in the Wochenbericht des Instituts fur Konjunkturforschung. 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

DECEMBER 1939 FEDERAL RESERVE BULLETIN 1145 DISCOUNT RATES OF CENTRAL BANKS [Per cent per annuml Central bank of— 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 b C an e k n tr o a f— l N R 2 o a 8 t v e . ef D fec a t t i e ve b C an e k n tr o a f— l N R 2 o a 8 t v e . ef D fec a t t i e ve In effect June 30, Albania 6 April 1, 1937 Japan 3.29 Apr. 7, 1936 J J S J J S J O D A S N M M O O N M O S u u u a u e e e e u e c o o c c c 1 l l n a a a n p p l p p c t y y t t t 9 v g v y y y y . . . t e t t . t 3 . . . . 7 1 7 2 2 1 6 9 3 2 3 1 1 4 2 1 9 1 2 3 2 8 0 0 6 5 0 3 0 6 3 5 8 , , . 1 .. 1 9 9 3 3 7 . 8 _ 2 4 3 3 5 2 4 6 4 5 3 2 3 H 2 2 4 2 4 3 3 2 2 H 2 2 W 2H i 3.29 A H D D E E E F I B C F G B B B C C G C t r l i c s z u a o e h a a r r u o r e e s n a t e u i e l g l n n l l i n n l l S r o n t l g y e i g l c o o a z a e m i a v e m g n a c c i h a s d i v m d n n u i l a e e i g r o h a a o v a a a a d m t i r b - l a r n a r i y k n n i k d y i a d . a a o . . _ i . . r . . a . . _ . _ . 3-4 4 4 3 4 4 3 4 2 6 4 6 3 6 K H 2 J J J N A J J J D S J M O N A D M M M O a u a a a u u e e u o c e u o c n n n n a l a a l l a p c t c y y y g t v g v . . . . y r r r . . t . . . . . . . . . . 3 1 2 2 3 1 1 1 1 1 2 4 4 0 6 2 5 1 8 0 0 1 1 5 9 6 8 8 3 1 2 , , , , , , , , , , , , , , , , , , , , 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 5 2 9 2 9 7 5 3 5 2 7 9 6 9 6 6 4 6 5 5 J L N N N P L P P M R S S S T U Y S U a e o o w p o w i a u u e e o . u n l v d e t r a r l a u t w t r m r h g i e x i a u o S a v t h i n k t w t t d u u o i n n m h e z . i e d a c e a e g s a d d a e r o S n y n l A y n a r l a i . K a l Z l i a a v f a n r i e R n i n i d a a c d . g - s . a . - . . 3 4 3 4 3 6 4 2 4 5 2 2 * J A A J J N S J M D M N J M M D O F M u a a u u e e u u e o e o c n a n a a l a a l p l b c g g t c y y v v y y y y . r r . . t . . . . . . . . . . 1 2 2 1 1 1 2 1 1 2 2 2 4 0 5 5 1 6 9 1 1 1 5 9 8 1 1 1 2 9 6 , , , , , , , , , , , , , , , , , , , 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 7 3 9 9 9 6 8 2 7 8 6 8 7 9 5 7 9 3 9 Oct 27 2H Nov 25 2K 1 Not officially confirmed. Jan 4 1939 2 Changes since Oct. 26: None. Apr. 17 4 May 11 3 July 6 Aug. 24 4 Aug 29 3 Sept. 28 3 Oct. 26 2 In effect Nov. 28, 1939. _ 2 2 4 2H 3 IK 3.29 COMMERCIAL BANKS [Figures as of end of month, except those for United Kingdom, which are averages of weekly figures] Assets Liabilities United Kingdom Money at Loans to Deposits (Figures in millions of pounds sterling) Cash ca n s l o h l t o i a c r n t e d B co il u ls n t d e i d s- Se t c ie u s ri- cus e t r o s m- O as t s h e e ts r Total Demand i Time i lia O b t i h li e t 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. 244 163 300 635 984 256 2,330 1,284 1,026 252 1938—September. 234 148 289 646 973 242 2,269 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 1,004 269 December. 243 160 250 635 971 263 2,254 1,256 997 269 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 1,232 987 265 July 235 155 278 597 986 251 2,240 1,241 999 263 August 233 152 279 599 985 269 2,245 1,239 1,007 273 September 268 146 236 603 1,016 276 2,278 266 October 3__ 256 159 289 605 1,020 271 2,327 272 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. 3 Figures combined from reports by banks for one or another of several days near end of month; averages of weekly figures discontinued. 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

1146 FEDERAL RESERVE BULLETIN DECEMBER 1939 COMMERCIAL BANKS—Continued [Figures as of end of month] Assets Liabilities France (4 large banks. fr F a i n g c u s r ) es in millions of Cash D b u a e n f k r s om B co il u ls n d te i d s- Loans Other Total D D e e p m o a s n it d s Time a a c O n c w c e e p n s t- lia O b t i h li e 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 1,827 32, 635 31,773 862 273 4,362 1934—December. 5,836 1,421 18, 304 8,159 1,717 30,943 30,039 904 193 4,301 1935—December. 3,739 2,484 16,141 8,025 1,900 27, 553 26,859 694 337 4,399 1936— December. 3,100 2,975 17, 582 7,631 1,957 28,484 27,955 529 473 4,289 1937—December. 3,403 4,116 18, 249 7,624 2,134 30,348 29, 748 600 661 4,517 1938—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 33,042 537 721 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 May 5,148 3,769 25,102 7,061 1,409 38,120 37, 444 676 519 3,849 June 3,538 3,857 25, 263 6,538 1,472 36, 231 35, 547 684 486 3,951 July 3,464 3,580 25, 717 6,850 1,532 36, 650 35, 991 659 430 4,063 August p__ 6,357 3,718 18, 784 7,353 1,674 33, 293 32, 668 626 455 4,138 Assets Liabilities Germany i (5 large B l e io rl n in s o b f a n re k i s c . h sm Fi a g r u k r s e ) s in mil- re C se a r s v h es b f D a ro n u m k e s B co il u ls n t d e i d s- Loans Se t c ie u s ri- Other Total D D e e p m o a si 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 e ts 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 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 5,816 2,731 3,085 485 1,432 1935—November.. 139 316 2,162 2,884 ,027 5,376 2,435 2,941 686 :, 449 1936—November.. 137 269 2,567 2,729 ,112 851 5,751 2,661 3,090 579 ,334 1937—November.. 148 299 3,205 2,628 ,020 812 6,264 2,912 3,352 513 ,335 1938—August 199 255 3,589 2,731 ,098 844 6,933 3,219 3,714 416 :,368 September.. 270 295 3,384 2,817 ,097 876 6,915 3,311 3,603 424 ,400 October 179 261 3,620 2,743 ,183 7,031 3,373 3,658 422 1,427 November.. 195 270 3,643 2,685 L, 406 7,234 3,531 3,703 420 1,438 1939—January 184 285 3,934 2,708 L, 178 895 7,334 3,619 3,716 414 1,436 February..., 175 307 3,888 2,798 , 145 902 7,377 3,576 3,801 410 1,427 March 219 308 3,904 2,833 ,112 901 7,458 3,693 3,765 401 1,418 April 189 271 4,364 2,761 ,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 1,080 829 7,793 3,793 3,999 390 1,342 Liabilities Canada Entirely in Canada S a l e b o c r a u o n r a s i d ty D ad e a p o e s x it c s l u d p d e a p i y n o a g s b it l s e in i t n e rb C a a n n k - '10 cha l r io te n r s e d o f b C a a n n k a s d . ia F n ig d u o r l e la s r s i ) n mil- Cash S l e o c a u n r s ity an O lo d t a h n d e s i r s- a f n o f d r r d o e u i m e n g e n t Se ti c e u s ri- Other ci N t r i c o o u t n l e a- . Total Demand Time l O ia t t i b h e i s e li r counts banks 1930—December. 207 205 1,275 171 604 602 133 2,115 1,426 816 1931—December. 201 135 1,253 146 694 510 129 2,058 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 1,583 786 1938—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 7fi6 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 July.. 266 51 947 202 1,520 468 2,520 822 1,697 849 August 265 49 957 245 1,507 461 2,524 822 1,702 873 September. 279 51 1,020 214 1,502 475 95 2,583 891 1,692 862 v 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 othe r 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

1147 DECEMBER 1039 FEDERAL RESERVE BULLETIN FOREIGN EXCHANGE RATES [Averages of certified noon buying rates in New York for cable transfers. In cents per unit of foreign currency] Brazil (milreis) Chile (peso) 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 l m l g - a) Official m F a r r e k e et ( B I r r u n i p d t e i i s a e h ) g B ( a le u r v l i - a ) C (d a o n ll a a d r a ) — Official Export S ( C y h h h u a a i a n i 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 6C 13 952 10.7136 36.067 .7209 99. 842 12. 0785 29.917 96. 493 99 952 1931 66. 738 351. 5C 13. 929 7.0290 33. 690 .7163 96. 326 12. 0669 22. 437 96. 570 99. 930 1932 58 443 279 92 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 99 946 1934 33 579 400 91 23 287 8. 4268 37. 879 1. 2852 101.006 10.1452 34.094 61. 780 99 936 1935 32 659 388.8(> 18.424 8. 2947 36. 964 1. 2951 99. 493 5.0833 36. 571 56.011 99 920 1936 33 137 395 94I 16 917 8. 5681 5. 8788 37. 523 1. 2958 99. 913 5.1240 29. 751 57.083 99 909 1937 32. 959 393. 94I 16.876 8. 7190 6.1806 37. 326 1. 2846 100.004 5.1697 4.0000 29. 606 56. 726 99. 916 1938 32 597 389. 5,) 16.894 5. 8438 36. 592 1. 2424 99. 419 5.1716 4. 0000 21. 360 55. 953 99 925 1939—February 31.236 373. 3[\ 16.860 5. 8602 35.014 1. 2130 99. 502 5.1736 4.0000 15. 885 56.990 99 933 M!arch 31 234 373 2"7 16 823 5. 8647 35.057 1. 2103 99. 583 5. 1733 4.0000 16.016 56. 983 99 932 April 31 207 372. 8(3 16.838 5. 8595 34. 962 1. 2089 99. 483 5.1735 4. 0000 16.015 56. 982 99 936 M^ay 31 210 372 8<) 17 016 34.916 1. 2101 99. 620 5.1733 4.0000 15.987 57.009 99 942 June . 31.217 373.112 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. o:$ 16.991 6. 0571 5.0555 34. 905 1. 2126 99. 835 5.1703 4.0000 10. 637 57.036 99. 950 August 31. lie 367.3I 16.968 6.0579 5.0236 34.407 1. 2111 99.494 5.1691 4.0000 7.163 57.061 99.950 September 318 3I 17.028 6. 0594 5.0162 29. 928 91. 255 5.1776 4.0000 6.696 57. 068 October 29. 77C 319.5L 16.729 6. 0575 5. 0503 30. 296 89. 331 5.1713 4. 0000 7.638 57.151 Year or month C s k l o z o e v r c u a h n k o a i - a ) ( D m kr e a o n r n k - e ) . uD Eg o y u p nd t ) ( k l F m a k i n n a a d - r ) - F (f r r a an n c c ) e ( m m r G e a a e i r c n r k h - y ) s- G (d m r r e a a e c ) c h e - (d H K o o o ll n n a g g r) (p H 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 (p e e x s i o c ) o ( N g l e u a t i n l h d d e e s r r - ) Z (p e N a o e l u w a 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 1939— 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 August 20.834 472. 41 2.0456 2. 6137 39.859 .8520 28. 213 19. 576 5.2515 26.870 16.800 53.484 368 82 September 19 317 432 04 1. 9000 2. 2651 39. 500 . 7575 24. 863 5.1445 23. 459 19. 023 53.182 319 75 October ___ 19.291 _ 1. 8943 2. 2736 .7345 25. 030 5.0465 23. 510 20.151 53.115 320. 81 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 d - o) R ( u n le m ia u a ) - (p S A o o f u r u i n t c h a d) (p S e p s a e i t n a) ( S S m d e t o r e t l a t n l l i a t e t s r s - ) (k S d r w o e e n n - a) ( e S f r w r l a a i n t n c z d - ) ( T p u ou rk nd ej' ) ( U p K d o n o i u i n m t n e g d d - ; Con- Non-con- ( Y s d l i u a n v g a i o a r - ) trolled trolled 1929 26.683 11 194 4.4714 .5961 483. 27 14.683 56 f11? 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.}64 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 W 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.?3? 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 73 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 1939—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 ?73 24. Ill 22. 431 80. 279 468 05 61 592 2 2636 Mav 23. 519 18 812 4. 2460 .7056 463.11 11. 023 54 S73 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 54785 24.114 22. 550 80. 021 468.15 61. 600 35. 818 2 2744 August 23. 376 18.754 4. 2234 .7043 456.10 11. 000 53.996 24. 002 22. 573 80.022 461. 07 60. 659 35. 698 2. 2729 September.. 22. 655 3. 6564 394. 57 10. 492 46.712 23. 763 22. 57f 79. 500 399. 51 52. 595 38.180 October 22. 697 3. 6444 396.12 10.148 47.017 23.792 22. 433 401.05 52.847 39. 022 NOTE.—Developments affecting averages since September 1939 have been as follows: No rates certified for following days: Argentina—Oct. 1-16; Bulgaria, Cuba, Egypt, Germany, Hungary, Poland, Rumania, Turkey, and Yugoslavia—Oct. 1-31; Uruguay—Oct. 17-31. Quotations no longer nominal for Australia, Denmark, Finland, Hong Kong, Italy, Norway, Portugal, South Africa, Straits Settlements, and Sweden. For further information concerning nominal status of exchange quotations, special factors affecting the averages, and changes in the basis of quotation, see BULLETINS for March 1938, p. 244; March 1939, p. 236; September 1939, p. 831; and November 1939, p. 1031. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1148 FEDERAL RESERVE BULLETIN DECEMBER 1939 PRICE MOVEMENTS IN PRINCIPAL COUNTRIES WHOLESALE PRICES—ALL COMMODITIES [Index numbers] Year or month U S n ta it t e e d s Canada K U in n g i d te o d m France Germany Italy (O Ja c p to a b n er N l e a t n h d e s r- Sw la it n z d er- (1926=100) (1926=100) (1930=100) (1913=100) (1913=100) (1928=100) 1900=100) (1926-30= (July 1914 100) =100) 1926 100 100 1124 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 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—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 98 678 107 96 270 70 107 August __ 75 72 98 674 107 272 71 107 September 79 78 105 107 288 117 October 79 pill p Preliminary. 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 193g—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 91 102 629 721 109 92 95 126 August 61 67 80 90 102 616 726 109 92 95 126 September 69 75 82 101 107 108 95 126 October _ _ 67 73 84 P109 r Preliminary. 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

1149 DECEMBER 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- Ger- Nether- Year or States land France many lands erland Year or States land France many lands month 1923- July July 1913- 1911- June month 1923- July 1913- 1911- 1925=1001914=1001914=1001914=1001913=1001914=100 1925=1001914=1001930=1001914=1001913=100 1926 109 161 554 146 161 160 1926 103 170 142 168 1929 105 154 611 156 162 156 1929 100 164 154 168 1930 100 145 614 146 150 152 1930 97 158 100 148 161 1931 82 131 611 131 136 141 1931_. 89 148 97 136 151 1932. 68 126 536 116 119 125 1932 80 144 91 121 141 1933 66 120 491 113 120 117 1933 . 76 140 87 118 139 1934 74 122 481 118 124 115 1934 79 141 83 121 140 1935 81 125 423 120 118 114 1935 81 143 78 123 1936 82 130 470 122 120 120 1936 82 147 86 125 1937. 85 139 601 122 127 130 1937 84 154 102 125 1938 79 141 702 122 130 130 1938 83 156 117 126 1938-September 79 140 697 121 130 130 1938-September 83 156 125 October. __ 78 139 725 121 130 130 October 155 125 November 78 140 727 121 128 130 November 156 120 125 December. 79 139 742 121 130 130 December. 83 156 125 1939-January .. 78 138 748 122 129 1939-January 155 126 February 77 138 744 122 129 February 155 122 126 March 76 135 742 123 130 128 March 82 153 126 April 77 135 734 122 129 April 153 126 May 77 134 738 123 130 May 153 123 126 June 76 134 739 124 124 132 June 82 153 127 July- 77 139 741 125 132 July 156 127 August... 75 137 749 125 131 August 155 127 September 79 138 122 133 September 83 155 126 October. __ 78 October P165 1 COCO C< CO <M I> Switzerland p June 1914=100 162 161 158 150 138 131 129 128 130 137 139 137 139 137 138 137 137 137 138 137 137 136 138 136 136 137 136 137 138 137 138 p Preliminary. i Revised index from March 1936 (see BULLETIN for April 1937, p. 373). Sources— See BULLETIN for April 1937, p. 373, and October 1939, p. 943. SECURITY PRICES [Index numbers except as otherwise specified] Bonds Common stocks Year or month United (1926=100) States England France Germany Nether- Nether- ( p a r v i e c r e a ) g i e ( 1 D 9 e 2 c 1 e = m 10 b 0 e ) r (1913=100) (a p v r e ic r e a ) ge lands 2 U S n ta it t e e d s England France Germany (19 l 3 a 0 n = d 1 s 00) 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 3 78.0 70 1932 69.5 113.2 88.6 3 67.1 94.8 48.6 67.9 105.2 3 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 4 101. 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—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 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 94.4 86.1 75.8 100.4 91.7 89.3 August 81.0 110.9 82.9 99.0 92.6 86.3 75.3 94.0 C93. 2 88.6 September.. 80.9 106.9 98.9 79.6 92.4 72.0 92.8 92. 1 October 82.9 95.3 c Corrected. 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. 8 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 1150 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. MCKEB 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. PATJLGER, 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 Vice-President M. J. FLEMING GEORGE H. HAMILTON District No. 4 (CLEVELAND) T. J. DAVIS 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 J. P. DREIBELBIS, Assistant General Counsel District No. 11 (DALLAS) R. E. HARDING E. A. GOLDENWEISER, Economist District No. 12 (SAN FRANCISCO)__.PAUL S. DICK JOHN H. WILLIAMS, Associate Economist WALTER LICHTENSTEIN, Secretary ALLAN SPROUL, Manager of System Open Market Account 1151 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 » New York__ Owen D. Young G. L. Harrison.. _ _ Allan Sproul _ L. R. Rounds W. S. Logan J. H. Williams R. M. Gidney L. W. Knoke R. G. Rouse PhiladelDhia 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 » Richmond... _ _. Robert Lassiter Hugh Leach _ J. S. Walden, Jr J. G. Fry G. H. Keesee i Atlanta F H Neely R. S. Parker W. S. McLarin, Jr. H. F Conniff M. H. Bryan Chicago R. E. Wood i G. J. Schaller __ H. P. Preston... C. S. Young W. H. Snyder» J. H. Dillard St Louis W T Nardin W. McC. Martin.. F. G. Hitt 0. M. Attebery CM. Stewart * Minneapolis.._ _ _W. C. Coffey 1 J N Peyton 0 S. Powell H. I. Ziemer 3 E. W. Swanson Kansas City R. B. Caldwell G. H. Hamilton... C. A. Worthington H. G. Leedy J. W. Helm 3 Dallas J. H. Merritt R R Gilbert E B Stroud R. B. Coleman W. J. Evans W. 0. Ford 2 San Francisco St George Holden l W. A. Day Ira Clerk W. M. Hale C. E. Earhart * R. B. West i Deputy chairman. 2 Cashier. 3 Also cashier. MANAGING DIRECTORS OF BRANCHES OF FEDERAL RESERVE BANKS Federal Reserve Bank of— Managing director Federal Reserve Bank of— Managing director New York: Minneapolis: Buffalo Branch R. M. O'Hara Helena Branch R. E. Towle Cleveland: Kansas City: Cincinnati Branch _. B. J. Lazar Denver Branch J. E. Olson Pittsburgh Branch _ P. A. Brown Oklahoma City Branch C. E. Daniel Richmond: Omaha Branch _ _ __ L. H. Earhart Baltimore Branch W. R. Milford Dallas: Charlotte Branch.__ W. T. Clements El Paso Branch J. L. Hermann Atlanta: Houston Branch W. D. Gentry Birmingham Branch P. L. T. Beavers San Antonio Branch M. Crump Jacksonville Branch G. S. Vardeman, Jr. San Francisco: Nashville Branch. _. J. B. Fort, Jr. Los Angeles Branch _ W. N. Ambrose New Orleans Branch 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. 1152 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX TO VOLUME 25 Page Page Acceptances: Balance of international payments of United Bankers': States: Outstanding 54, 130, 206, 314, July, 1914-Dec, 1918 1043 414, 508, 585, 664, 796, 906, 996, 1112 1936-1937 31 Buying rates 55, 131, 207, 315, 1937-1938 975 415, 509, 586, 665, 797, 907, 997, 1113 Balance of trade of United States: Discount rates, open market .56, 132, 208, 316, Discussion of 92, 96, 551, 1048 416, 510, 587, 666, 798, 908, 998, 1114 Balance sheets. (See Condition statements.) Member bank holdings: Bank credit. (See Credit, Bank.) All banks on call dates: Bank debits. (See Debits to individual accounts.) Mar. 29, 1939 489 Bank directorates, Interlocking: June 30, 1939 728 Board of Governors statement on 719 Monthly table 48, 124, 200 President's veto message on S. 2150 719 (See also Open market paper.) Regulation L, amended 719 Africa. (See South Africa; West Africa.) Bank failures. (See Banks: Suspensions.) Agricultural credit institutions. (See Farm Bank for International Settlements: credit agencies.) Annual report, 1938 746-772 Albania: Condition 81, 157, 233, 343, National Bank of: 445, 538, 616, 696, 828, 938, 1028, 1144 Condition 78, 154, 230, 340, Gold reserves 74, 150, 226, 336, 441, 535, 613, 693, 825, 935, 1025, 1141 434, 528, 606, 686, 818, 928, 1018, 1134 Discount rate 82, 158, 234, 344, Bank mergers. (See Banks: Consolidations, 445, 539, 617, 697, 829, 939, 1029, 1145 absorptions, etc.) Algeria: Bank premises: Decree approving convention between Member banks: French Government and Bank of Algeria 976 Dec. 31, 1938 264 Allen, P. R., reelected Class B Director, Federal Mar. 29, 1939 489 Reserve Bank of Boston 7 June 30, 1939 728 Bank supervision: Anthracite. (See Coal.) "Problems of Banking and Bank Supervi- Argentina: sion" 97 Central Bank of: Bankers' acceptances. (See Acceptances.) Annual report, 1938 1077-1094 Bankers' balances: Condition 78, 154, 230, 340, Discussion of 712-713 441, 535, 613, 693, 825, 935, 1025, 1141 Member bank holdings: Discount rate 82, 158, 234, 344, All banks on call dates: 445, 539, 617, 697, 829, 939, 1029, 1145 Dec. 31, 1938 264 Gold reserves 74, 150, 226, 336, Mar. 29, 1939 488 434, 528, 606, 686, 818, 928, 1018, 1134 June 30, 1939 727 Foreign exchange rates 84, 160, 236, 346, Monthly table 49, 125, 201, 309, 409, 447, 541, 619, 700, 831, 941, 1031, 1147 503, 580, 659, 791, 901, 991, 1107 Gold movements to and from U. S. .46, 122, 198, Reporting banks: 306, 406, 500, 577, 656, 788, 898, 988, 1104 All banks, N. Y. C. and outside Assets and liabilities. (See Condition state- N. Y. C, monthly and Wednesments.) day figures. . . 50, 126, 202, 311, 411, Austin, R. L., retirement as Class C Director 505, 582, 661, 793, 903, 993, 1109 and Chairman and Federal Reserve Agent, By districts and for Chicago, Wed- Philadelphia 8 nesday figures 52, 128, 204, 313, 413, Australia: 507, 584, 663, 795, 905, 995, 1111 Bank of: Banking and financial legislation: Condition 78, 154, 230, 340, Branch banking laws, Federal and State 441, 535, 613, 693, 825, 935, 1025, 1141 851-870 Foreign exchange rates 84, 160, 236, 346, Federal Reserve membership requirement 447, 541, 619, 700, 831, 941, 1031, 1147 for State insured banks repealed 559 Gold movements to and from U.S.. .46, 122, 198, Federal Reserve notes, Direct obligations of 306, 406, 500, 577, 656, 788, 898, 988, 1104 U. S. as collateral for, until June 30, 1941 637 Gold production 75, 151, 227, 337, Foreign. (See under name of country.) 435, 529, 607, 687, 819, 929, 1019, 1135 Gold Reserve Act of 1934, amended 638 Austria: Loans to executive officers of member banks Foreign exchange rates 84, 160, 236, 346, extended 559 447, 541, 619 Neutrality Act of 1939: Automobiles. (See Transportation equipment.) Financial transactions under 1054 1153 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1154 INDEX TO VOLUME 25 Page Page Banking and financial legislation—Continued. Belgium: Reconstruction Finance Corporation and Foreign exchange rates 84, 160, 236, 346, related agencies continued 253-254 447, 541, 619, 700, 831, 941, 1031, 1147 Trust Indenture Act of 1939, note on 851 Gold movements to and from U.S. 46, 122, Banking developments: 198, 306, 406, 500, 577, 656, 788, 898, 988, 1104 Money rates 81, 157, 233, 343, Discussion of 243, 456 445, 538, 616, 696, 828, 938, 1028, 1144 Banking funds: National Bank of: Discussion of 353, 709-714 Annual report, 1938 279-283 Movement to U. S. from abroad: Condition 78, 154, 230, 340, July-Sept., 1938 32-33 441, 535, 613, 693, 825, 935, 1025, 1141 Oct.-Nov., 1938 184-185 Discount rate: 1938 290-291 Changes in 445, 539, 697 Description of tables 284-287 Monthly table .82, 158, 234, 344, 445, Monthly table 437, 531, 609, 689, 821, 539, 617, 697, 829, 939, 1029, 1145 931, 1021, 1137 Gold reserves 74, 150, 226, 336, Banking offices: 434, 528, 606, 686, 818, 928, 1018, 1134 Number of: Treasury gold reserves 606, 686, 818, 928, 1933-1939, by classes 109, 477, 1065 1018, 1134 Banks: Belligerents: Branches. (See Branch banks.) Credits to, regulations 961 Consolidations, absorptions, etc.: Financial transactions under Neutrality 1938 changes 110 Act '.1054 Jan.-Mar., 1939 changes 478 Foreign resources 1041-1043 Jan.-Sept., 1939 changes 1066 Biddle, Francis, appointed Deputy Chairman, Loans to, by member banks: All banks on call dates: Federal Reserve Bank of Philadelphia 7 Dec. 31, 1938 264 Bills: Mar. 29, 1939 489 Bought in open market by Federal Reserve June 30, 1939 728 banks: Monthly table. . 48, 124, 200, 308, 408, All banks combined, end of month and 502, 579, 658, 790, 900, 990, 1106 Wednesday figures 38, 114, 190, 298, Reporting banks: 398, 492, 569, 648, 780, 890, 980, 1096 All banks, N. Y. C. and outside Each bank, Wednesday figures. .40, 116,192, N. Y. C, monthly and Wednes- 300, 400, 494, 571, 650, 782, 892, 982, 1098 Discounted by Federal Reserve banks: day figures. .50, 126, 202, 310, 410, 504, 581, 660, 792, 902, 992, 1108 All banks combined, end of month and By districts and for Chicago, Wed- Wednesday figures 38, 114, 190, 298, nesday figures .52, 128, 204, 312, 412, 398, 492, 569, 648, 780, 890, 980, 1096 Each bank, Wednesday figures 40, 116,192, 506, 583, 662, 794, 904, 994, 1110 300, 400, 494, 571, 650, 782, 892, 982, 1098 Loans to, by Reconstruction Finance Cor- Federal Reserve bank holdings: poration 60, 136, 212, 320, 420, Maturity distribution .39, 115, 191, 299, 514, 591, 670, 802, 912, 1002, 1118 399, 493, 570, 649, 781, 891, 981, 1097 Number of: Payable by member banks. (See Borrowings.) Call dates: 1933-1939 109, 477, 1065 Bituminous coal. (See Coal.) 1938 changes 110 Board of Governors of Federal Reserve System: Jan.-Mar., 1939 changes 478 Members and officers 88, 164, 240, 350, Jan.-Sept., 1939 changes 1066 452, 546, 624, 704, 836, 946, 1036, 1151 Monthly table .47, 123, 199, 307, 407, Press statements: 501, 578, 657, 789, 899, 989, 1105 Advances to member and nonmember Group banks: banks 840 Dec. 31, 1938 480 Check clearing and collection 719 Operating branches: Interlocking bank directorates 719 Dec. 31, 1938, by States 479 Monetary measures and objectives. . . .363- Group banks, Dec. 31, 1938 480 364, 461 Suspensions: Price stabilization 255-259, 461 Monthly table. .46, 122, 198, 306, 406, 500, Publications: 577, 656, 788, 898, 988, 1104 Annual report, 1938 97 (See also Federal Reserve banks; Member Federal Reserve System—Its Purposes banks; National member banks; Non- and Functions 461 member banks; State banks; State mem- List of 37, 568 ber banks.) Member bank condition reports revised 22, 259-262 Banks for cooperatives: Monetary Measures and Objectives ... 461 Loans outstanding 61, 137, 213, 321, Problems of Banking and Bank Super- 421, 515, 592, 671, 803, 913, 1003, 1119 vision 97 Belgian Congo: Stocks registered, Jan. 31, 1939 173 Bank of: Bolivia: Central Bank of: Condition 825, 935, 1025, 1141 Condition 78. 154, 230, 340, Gold production 75, 151, 227, 337, 441, 535, 613, 693, 825, 935, 1025, 1141 435, 529, 607, 687, 819, 929, 1019, 1135 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX TO VOLUME 25 1155 Page Page Bolivia—Continued. Brokers and dealers in securities—Continued. Central Bank of—Continued. Loans to, by member banks—Continued. Discount rate 82, 158, 234, 344, Reporting banks—Continued. 445, 539, 617, 697, 829, 939, 1029, 1145 N. Y. C, monthly and Wednes- Bonds: day figures 50, 126, 202, 310, Collateral loans on. (Ruling.) 362 410, 504, 581, 660, 792, 902, 992, 1108 New issues. (See Capital issues.) By districts and for Chicago, Wed- Prices: nesday figures 52, 128, 204, 312, Discussion of 628-629 412, 506, 583, 662, 794, 904, 994, 1110 Principal countries 86, 162, 238, 348, Margin accounts, Debit balances in. (See 449, 543, 621, 702, 833, 943, 1033, 1149 Brokers' balances.) United States 57, 133, 209, 317, Broker's balances: 417, 511, 588, 667, 799, 909, 999, 1115 Monthly table 54, 130, 206, 314, United States Government. (See United 414, 508, 585, 664, 796, 906, 996, 1112 States Government securities.) Movement to U. S. from abroad: Yields: July-Sept., 1938 33 Charts 629, 840 Oct.-Nov., 1938 185 Discussion of 628-629, 840 1938 294 Monthly and weekly figures 56, 132, 208, Description of tables 284-287 316, 416, 510, 587, 666, 798, Monthly table 438, 532, 610, 690, 908, 998, 1114 822, 932, 1022, 1138 National summary 98, 175, Brooks, F. F., reelected Class A Director, Fed- 250, 556, 633, 958 eral Reserve Bank of Cleveland 6 Building contracts. (See Construction con- Boots and shoes. (See Leather and leather prodtracts.) ucts.) Building materials: Borrowings: Prices, Discussion of 953 Member banks: Wholesale price indexes 71, 147, 223, 331, All banks on call dates: 431, 525, 602, 681, 813, 923, 1013, 1129 Dec. 31, 1938 264 Bulgaria: Mar. 29, 1939 488 Foreign exchange rates 84, 160, 236, 346, June 30, 1939 727 447, 541, 619, 700, 831, 941, 1031, 1147 Monthlv table . 49, 125, 201, 309, 409, National Bank of: 503, 580, 659, 791, 901, 991, 1107 Condition 78, 154, 230, 340, Reporting banks: 441, 535, 613, 693, 825, 935, 1025, 1141 All banks, N. Y. C. and outside Discount rate 82, 158, 234, 344, N. Y. C, monthly and Wednes- 445, 539, 617, 697, 829, 939, 1029, 1145 day figures . .51,-127, 203, 311, 411, Gold reserves 74, 150, 226, 336, 505, 582, 661, 793, 903, 993, 1109 434, 528, 606, 686, 818, 928, 1018, 1134 By districts and for Chicago, Wed- Burke, E. S., Jr., retirement as Class C Director nesday figures 53, 129, 205, 313, 413, and Chairman and Federal Reserve Agent, 507, 584, 663, 795, 905, 995, 1111 Cleveland 8 Brainard, George C, designated Chairman and Business and credit conditions: Federal Reserve Agent, Cleveland 7 Discussion of 1, 91, 167, 243, 353, Branch banks: 455, 549, 627, 709, 839, 949, 1039, 1048 1933-1939 109, 477,1065 National summary 8, 97, 174, 249 1938, by States 479 357, 462, 555, 632, 715, 846, 957, 1050 1938 changes 110 Statistical summary 11, 100, 177, 252, Jan.-Mar., 1939 changes 478 360, 465, 558, 635, 718, 849, 960, 1053 Jan.-Sept., 1939 changes 1066 Caldwell, R. B., designated Chairman and Fed- Group bank branches: eral Reserve Agent, Kansas City 7 Dec. 31, 1938 480 Canada: Laws, Federal and State 851-870 Bank of: Annual report, 1938 392-395 Brazil: Condition 78, 154, 230, 340, Bank of: 441, 535, 613, 693, 825, 935, 1025, 1141 Condition 78 Discount rates 82, 158, 234, 344, Gold reserves 74, 150, 226, 336, 445, 539, 617, 697, 829, 939. 1029. 1145 434, 528, 606, 686, 818, 928, 1018, 1134 Gold reserves 74, 150, 226, 336, Foreign exchange rates 84, 160, 236, 346, 434, 528, 606, 686, 818, 928, 1018, 1134 447, 541, 619, 700, 831, 941, 1031,1147 Commercial banks . 83. 159. 235, 345, Breithut, R. C 265, 468 446, 540, 618, 698, 830, 940, 1030, 1146 British India. (See India, British.) Foreign exchange rates 84, 160, 236, 346, Brokers and dealers in securities: 447, 541, 619, 700, 831, 941, 1031, 1147 Loans to, by member banks: Gold movements to and from U. S. 46, 122, 198, All banks on call dates: 306, 406, 500, 577, 656, 788, 898, 988, 1104 Mar. 29, 1939 489 Gold production 75, 151, 227, 337, June 30, 1939 728 435, 529, 607, 687, 819, 929, 1019, 1135 Monthly table 48, 124, 200, 308, Wholesale price indexes . 85, 161, 237, 347, 408, 502, 579, 658, 790, 900, 990, 1106 448, 542, 620, 701, 832, 942, 1032, 1148 Reporting banks: Cannon, Harry L., elected Class B Director, Fed- All banks, N. Y. C. and outside eral Reserve Bank of Philadelphia 7 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1156 INDEX TO VOLUME 25 Page Page Capital: Central America: Federal Reserve banks 40, 116, 192, 300, Gold movements to and from U. S.. .46, 122, 198, 400, 494, 571, 650, 782, 892, 982, 1098 306, 406, 500, 577, 656, 788, 898, 988, 1104 Member banks: Central banks. (See under name of country, e.g. Dec. 31, 1938 264 France: Bank of.) Mar. 29, 1939 489 Central reserve city member banks: June 30, 1939 728 Condition on call dates: Capital accounts: Dec. 31, 1938 264 Member banks: Mar. 29, 1939 488-489 All banks on call dates: June 30, 1939 727-728 Dec. 31, 1938 264 Monthly table 48, 124, 200, 308, Mar. 29,1939 488 408, 502, 579, 658, 790, 900, 990, 1106 June 30, 1939 727 Deposits 44, 120, 196, 304, Monthly table 309, 409, 503, 580, 404, 498, 575, 654, 786, 896, 986, 1102 659, 791, 901, 991, 1107 Reserves: Reporting banks: Monthly and weekly figures 44, 120, 196, All banks, N. Y. C. and outside 304, 404, 498, 575, 654, 786, 896, 986, 1102 N. Y. C, monthly and Wednes- Certificates of deposit: day figures 51, 127, 203, 311, Payment or renewal of time certificates 411, 505, 582, 661, 793, 903, 993, 1109 maturing on Sunday. (Ruling.) 850 By districts and for Chicago, Wed- Charts: nesday figures 53, 129, 205, 313, American investment abroad and foreign in- 413, 507, 584, 663, 795, 905, 995, 1111 vestment in U. S. 95 Capital issues: Bond yields 629, 840 Discussion of 172, 630 Chart book statistics . 111-112, 224, 332-333, 432, Monthly figures 57, 133, 209, 317, 526, 603-604, 683, 815, 925, 1015, 1131-1132 417, 511, 588, 667, 799, 909, 999, 1115 Commercial loan rates at banks in principal Capital movement to United States: cities 963 Discussion of. . . .92-96, 247, 455, 549, 1039-1043 Condition of member banks by classes of Statistics: banks 712 July-Sept., 1938 32-34 Construction contracts awarded . 8, 170, 249, 459 Oct.-Nov., 1938 184-186 Department store sales and stocks. . 171, 463, 846 1938 288-289 Deposit behavior study 269, 469 Description of tables 284-287 Distribution of commercial loans according Monthly table 437, 531, 609, 689, 821, to interest rates charged 17, 725 931, 1021, 1137 Earnings and expenses of member banks 373 Capital movements, International: Excess reserves of member banks 98, 358 Exchange quotations for leading countries . 353 Discussion of 92-96, 1039 Exchange rates in New York 1040 Car loadings, Freight. (See Freight-car loadings.) Exports of U. S. merchandise 552 Cash: Factors of gain and losses of reserve funds . 711 Member bank holdings: Factory employment 9, 98,174, All banks on call dates: 250, 458, 463, 632 Dec. 31, 1938 264 Factory employment, hours and earnings Mar. 29, 1939 488 458, 463 June 30, 1939 727 Foreign trade of the United States . . 552, 1048 Monthly table . .49, 125, 201, 309, Freight-car loadings 556, 633, 715, 958 409, 503, 580, 659, 791, 901, 991, 1107 Industrial production 8, 20, 97, 169, 174, Reporting banks: 249, 456, 462, 555, 632, 715, 844, 846 All banks, N. Y. C. and outside Industrial production, United Kingdom and N. Y. C, monthly and Wednes- France 1046 day figures . . 50, 126, 202, 311, 411, Interest-bearing debt of U. S. Government. . 2 505, 582, 661, 793, 903, 993, 1109 Investments of country banks 245 By districts and for Chicago, Wed- Manufacturing production 357, 1050 nesday figures 52, 128, 204, 313, Member bank reserves and related items 10, 99, 413, 507, 584, 663, 795, 905, 995, 1111 176, 251, 359, 464, 557, 634, Cement: 716, 717, 848, 959, 1052 Factory employment index: Member banks in 101 leading cities 9, 175, 244, Adjusted 65, 141, 217, 325, 358, 556, 633, 958, 1051 425, 519, 596, 675, 807, 917, 1007, 1123 Money in circulation 355 Unadjusted 67, 143, 219, 327, Money rates in New York City 175, 427, 521, 598, 677, 809, 919, 1009, 1125 250, 463, 847, 1051 Factory payrolls index 67, 143, 219, 327, National income payments 168, 455 427, 521, 598, 677, 809, 919, 1009, 1125 Resources of Foreign Monetary Authorities Production index: with Federal Reserve Banks 549 Adjusted 63, 139, 215, 323, Stock prices 629, 841 423, 517, 594, 673, 805, 915, 1005, 1121 Wholesale prices 97, 358, 460, 556, Unadjusted 64, 140, 216, 324, 716, 843, 847, 950, 951, 958, 1051 424, 518, 595, 674, 806, 916, 1006, 1122 Yields on U. S. Government securities. ... 3 Wholesale price index 71, 147, 223, 331, Check clearing and collection: 431, 525, 602, 681, 813, 923, 1013, 1129 Regulation J, revised 719-721 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX TO VOLUME 25 1157 Page Page Chemicals: Colombia—Continued. Factory employment index: Gold production. . . .75, 151, 227, 337, 435, 529, Adjusted 65, 141, 217, 325, 425, 519, 607, 687, 819, 929, 1019, 1135 596, 675, 807, 917, 1007, 1123 Commercial failures. . .69, 145, 221, 329, 429, 523, Unadjusted 67, 143, 219, 327, 427, 521, 600, 679, 811, 921, 1011, 1127 598, 677, 809, 919, 1009, 1125 Commercial, industrial and agricultural loans: Factory payrolls index. . .67, 143, 219, 327, 427, Commercial loans, Discussion of increase in. 841 521, 598, 677, 809, 919, 1009, 1125 Member banks: Prices, Discussion of 951 All banks on call dates: Wholesale price indexes .71, 147, 223, 331, 431, Mar. 29, 1939 489 525, 602, 681, 813, 923, 1013, 1129 June 30, 1939 728 Chile: Monthly table 308, 408, 502, 579, Central Bank of: 658, 790, 900, 990, 1106 Condition. . .78, 154, 230, 340, 441, 535, 613, Reporting banks: 693, 825, 935, 1026, 1142 All banks, N. Y. C. and outside Discount rate. . . 82, 158, 234, 344, 445, 539, N. Y. C, monthly and Wednes- 617, 697, 829, 939, 1029, 1145 day figures . .50, 126, 202, 310, 410, Gold reserves. . . . 74, 150, 226, 336, 434,528, 504, 581, 660, 792, 902, 992, 1108 606, 686, 818, 928, 1018, 1134 By districts and for Chicago, Wed- Foreign exchange rates. . .84, 160, 236, 346, 447, nesday figures . 52, 128, 204, 312, 412, 541, 619, 700, 831, 941, 1031, 1147 506, 583, 662, 794, 904, 994, 1110 Gold movements to and from U. S. 46, 122, 198, Term loans to commercial and industrial 306, 406, 500, 577, 656, 788, 898, 988, 1104 concerns 560-562 Gold production 75, 151, 227, 337, 435, 529, Commercial paper: 607, 687, 819, 929, 10191,135 Discount rates, open market 56, 132, 208, 316, China: 416, 510, 587, 666, 798, 908, 998, 1114 Central Bank of: Member bank holdings: Gold reserves . 74, 150, 226, 336, 434, 528, All banks on call dates: 606, 686, 818, 928, 1018, 1134 Mar. 29, 1939 489 Foreign exchange rates .84, 160, 236, 346, 447, June 30, 1939 728 541, 619, 700, 831, 941, 1031, 1147 Monthly table 48, 124, 200 Gold movements to and from U. S. 46, 122, 198, Outstanding 54, 130, 206, 314, 414, 508, 306, 406, 500, 577, 656, 788, 898, 988, 1104 585, 664, 796, 906, 996, 1112 Cigars and cigarettes. (See Tobacco: Manu- (See also Open market paper.) factures.) Commodity Credit Corporation: Closed banks. (See Banks: Suspensions.) Act continuing functions 254 Coal: Assets and liabilities . . 60, 136, 212, 320, 420, Freight-car loadings indexes .70, 146, 222, 330, 514, 591, 670, 802, 912, 1002, 1118 430, 524, 601, 680, 812, 922, 1012, 1128 Guaranteed obligations outstanding ... 58, 134, Production indexes: 210, 318, 418, 512, 589, 668, 800, 910, 1000, 1116 Adjusted 63, 139, 215, 323, 423, 517, Summary of operations, 1938 365-371 594, 673, 805, 915, 1005, 1121 Unadjusted . . 64, 140, 216, 324, 424, 518, Commodity prices. (See Prices.) 595, 674, 806, 916, 1006, 1122 Comptroller of the Currency: Wholesale price indexes . . 71, 147, 223, 331, Condition report form revised. 22 431, 525, 602, 681, 813, 923, 1013, 1129 Condition statements: Coffey, W. C, appointed Deputy Chairman, Fed- All banks in U. S.: eral Reserve Bank of Minneapolis 7 Sept. 28, 1938 24-28 Coin: Dec. 31, 1938 382-386 Circulation 45, 121, 197, 305, 405, 499, Mar. 29, 1939 563-567 576, 655, 787, 897, 987, 1103 June 30, 1939 970-974 Coke: Bank for International Settlements 81, 157. Freight-car loadings indexes 70, 146, 222, 233, 343, 445, 538, 616, 696, 828, 938, 1028, 1144 330, 430, 524, 601, 680, 812, 922, 1012, 1128 Federal Reserve banks: Production indexes: All banks combined, end of month and Adjusted 63, 139, 215, 323, 423, 517, Wednesday figures 39, 115, 191, 299, 594, 673, 805, 915, 1005, 1121 399, 493, 570, 649, 781, 891, 981, 1097 Unadjusted 64, 140, 216, 324, 424, 518, Each bank, Wednesday figures . 40, 116, 595, 674, 806, 916, 1006, 1122 192, 300, 400, 494, 571, Collier, Raymond J. 963 650, 782, 892, 982, 1098 Colombia: Foreign central banks 77, 153, 229, 339, Bank of: 440, 534, 612, 692, 824, 934, 1024, 1140 Condition . . . 78, 154, 230, 340, 441, 535, Foreign commercial banks 82, 158, 234, 344, 613, 693, 825, 935, 1026, 1142 445, 539, 617, 697, 829, 939, 1029, 1145 Discount rate. 82, 158, 234, 344, 445, 539, Governmental corporation and credit 617, 697, 829, 939, 1029, 1145 agencies: Gold reserves. 74, 150, 226, 336, 434, 528, Monthly table 60, 136, 212, 320, 420, 606, 686, 818, 928, 1018, 1134 514, 591, 670, 802, 912, 1002, 1118 Foreign exchange rates 84, 160, 236, 346, 447, Summary of operations 365-371 541, 619, 700, 831, 941, 1031, 1147 Insured commercial banks: Gold movements to and from U. S. 46, 122, 198, Dec. 31, 1938 . . .. 381 306, 406, 500, 577, 656, 788, 898, 988, 1104 June 30, 1939 877 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1158 INDEX TO VOLUME 25 Page Page Condition statements—Continued. Credit agencies, Governmental. (See Govern- Member banks: mental corporations and credit agencies.) All banks on call dates: Credit control: Dec. 31, 1938 264, Board of Governors statement on Monetary Mar. 29, 1939 488-489 measures and objectives 363-364, 461 June 30, 1939 727-728 Credit union notes: Monthly table. . .48, 124, 200, 308, '408, Eligibility for discount by F. R. banks. 502, 579, 658, 790, 900, 990, 1106 (Ruling.) 361 Selected dates, 1933-1938 263 Crops: Chart 712 National summary 633, 716, 847 Reporting banks: Reports, by districts 72, 682, All banks, N. Y. C. and outside 814, 924, 1014, 1130 N. Y. C, monthly and Wednes- Cuba: day figures . . 50, 126, 202. 310, 410, Banking and financial legislation: 504, 581, 660, 792, 902, 992, 1108 June, 1939. Stabilization fund estab- By districts and for Chicago, Wed- lished 742 nesday figures 52, 128, 204, 312, 412, July, 1939. Settlement in pesos of 506, 583, 662, 794, 904, 994, 1110 obligations contracted in U. S. dol- Revised form 22, 259-262 lars 744 ; Consolidations, absorptions, etc. (See Banks: Foreign exchange rates 84, 160, 236, 346, 447, Consolidations, absorptions.) 541, 619, 700, 831, 941, 1031, 1147 Construction contracts awarded, Value of: Currency circulation. (See Money in circulation.) By types of construction and financing, and Currie, Lauchlin B. : by districts 69, 145, 221, 329, 429, 523, Appointed Administrative Assistant to Pres- 600, 679, 811, 921, 1011, 1127 ident of United States 631 Charts 8, 170, 249, 459 Deposit behavior studies 178, 871 Discussion of 169, 455, 458-459, 949, 955 Curtiss, F. H.: Indexes 62, 138, 214, 322, 422, 516, 593, Reappointed Class C Director, Federal Re- 672, 804, 914, 1004, 1120 serve Bank of Boston 7 National summary. . 8, 98, 174, 249, 357, 462, Redesignated Chairman and Federal Re- 555, 632, 715, 846, 957, 1050 serve Agent, Boston 7 Corn crop reports 72, 682, 814, 924, 1014, 1130 Customers' debit balances of Stock Exchange Corporations and credit agencies, Governmental. firms. (See Brokers' balances.) (See Governmental corporations and credit Customers' loans, Rates on. (See Interest rates: agencies.) Charged customers by banks; Interest rates: Cost of living: Commercial loan rates.) Indexes, principal countries 86, 162, 238, 348, Czechoslovakia: 449, 543, 621, 702, 833, 943, 1033, 1149 Foreign exchange rates... 84, 160, 236, 346, Cotton: 447, 541, 619, 700, 831, 941, 1031, 1147 Crop reports 72, 682, 814, 924, 1014, 1130 National Bank of: Manufactures. (See Textiles.) Condition. . .78, 154, 230, 340, 441, 535, Country member banks: 613, 693, 825, 935, 1026, 1142 Condition on call dates: Discount rates. . 82, 158, 234, 344, 445, 539, Dec. 31, 1938 264 617, 697, 829, 939, 1029, 1145 Mar. 29, 1939 488-489 Gold reserves 74, 150, 226, 336, 434, June 30, 1939 727-728 528, 606, 818, 928, 1018, 1134 Monthly table. . 48, 124, 200, 308, 408, 502, Danzig: 579, 658, 790, 900, 990, 1106 Bank of: Deposits: Condition 78, 154, 230, 340, 441, 535, Monthly figures 44, 120, 196, 304, 404, 613, 693, 825, 935, 1026, 1142 498, 575, 654, 786, 896, 986, 1102 Discount rate 82,158, 234, 344, 445, Reserves: 539, 617, 697, 829, 939, 1029, 1145 Monthly and weekly figures . 44, 120, 196, Debits to individual accounts: 304, 404, 498, 575, 654, 786, 896, 986, 1102 Monthly table 46, 122, 198, 306, 406, Cozzo, J. B., appointed Class C Director, Federal 500, 577, 656, 788, 898, 988, 1104 Reserve Bank of Dallas 554 Debt, U. S. Government. (See Treasury finance: Crabbs, G. D., reelected Class B Director, Fed- Public debt.) eral Reserve Bank of Cleveland 7 Deficit, U. S. Treasury. (See Treasury finance: Credit, Bank: Deficit.) Federal Reserve: Denmark: End of month and Wednesday figures, Foreign exchange rates ... 84, 160, 236, 346, 38, 114, 190, 298, 398, 492, 569, 648, 447, 541, 619, 700, 831, 941, 1031, 1147 780, 890, 980, 1096 National Bank of: Monthly and yearly averages of daily Condition 78, 154, 230, 340, 441, 535, figures. .11, 100, 177, 252, 360, 465, 558, 613, 693, 825, 935, 1026, 1142 635, 718, 849, 960, 1053 Discount rate: Member banks: Changes in 234, 939, 1029 Discussion of 171, 243-246, 354, Monthlv table 82, 158, 234, 344, 445, 456, 631, 709-714 539, 617, 697, 829, 939, 1029, 1145 National summary 9, 98, 175, 250, 358, 462, Gold reserves 74, 150, 226, 336, 434, 528, 556, 633, 716, 847, 958, 1051 606, 686, 818, 928, 1018, 1134 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX TO VOLUME 25 1159 Page Page Dennison, Henry S., reappointed Deputy Chair- Deposits—Continued. man, Federal Reserve Bank of Boston 7 Member banks—Continued. Department store sales and stocks: Reporting banks: Charts 171, 463, 846 All banks, N. Y. C. and outside N. Discussion of 170, 949 Y. C, monthly and Wednesday Index of sales (value) : figures 51, 127, 203, 311, 411, Monthly figures 70, 146, 222, 330, 430, 505, 582, 661, 793, 903, 993, 1109 524, 601, 680, 812, 922, 10.12, 1128 By districts and for Chicago, Yearly and monthly figures . 62, 138, 214, Wednesday figures 53, 129, 205, 313, 322, 422, 516, 593, 672, 413, 507, 584, 663, 795, 905, 995, 1111 804, 914, 1004, 1120 Mutual savings banks: Index of stocks (value) : Sept. 28, 1938 28 Monthly figures .70, 146, 222, 330, 430, Dec. 31, 1938 386 524, 601, 680, 812, 922, 1012, 1128 Mar. 29, 1939 567 National summary 9, 98, 174, 250, 357, 463, June 30, 1939 974 556, 632, 716, 846, 957, 1050 National member banks: Deposits: Sept. 28, 1938 26 All banks in U. S.: Dec. 31, 1938 384 Call dates: Mar. 29, 1939 565 Sept. 28, 1938 24-28 June 30, 1939 972 Dec. 31, 1938 382-386 Nonmember deposits in Federal Reserve Mar. 29, 1939 563-567 banks: June 30, 1939 970-974 End of month and Wednesday figures . 38, Monthly table . .47, 123, 199, 307, 407, 114, 190, 298, 398, 492, 569, 648, 780, 501, 578, 657, 789, 899, 989, 1105 890, 980, 1096 Behavior study: 178-183, 265-270, 468-476 Personal loans: Analysis by size of accounts 178-183 Funds for retiring personal loans as Analysis by type of deposit holder. . 265-270 deposits. (Ruling.) 637 Charts: Postal Savings System. (See Postal Sav- Movement of deposits prior to sus- ings deposits.) pension 469 Private banks: Sept. 28, 1938 28 Percentage reductions in demand Dec. 31, 1938 386 deposits, classified 269 Mar. 29, 1939 567 Demand deposit accounts, Changes in June 30, 1939 974 number 476 Reserves required against. (See Reserve Location of banks supplying data 179 requirements.) Scope of data 178 Savings: Summary of results 178 Payment of interest on. (See Interest Timing of deposit reductions 468-476 on deposits.) Demand: State banks: Distribution by economic classes of de- Sept. 28, 1938 27 positors, 1933, 1935 and 1936 871-874 Dec. 31, 1938 385 Federal Reserve banks: Mar. 29, 1939 566 All banks combined, end of month and June 30, 1939 973 Wednesdav figures 39, 115, 191, 299, Suspended banks: 399, 493, 570, 649, 781, 891, 981, 1097 Monthly table 46, 122, 198, 306, Each bank, Wednesday figures 40, 116, 406, 500, 577, 656, 788, 898, 988, 1104 192, 300, 400, 494, 571, Time: 650, 782, 892, 982, 1098 Distribution by economic classes of de- Group banks, Dec. 31, 1938 480 positors, 1933, 1935 and 1936 873 Insurance of. (See Insurance of deposits.) Directorates, Interlocking. (See Bank directo- Insured: survey, Sept. 21, 1939 101-104 rates, Interlocking.) Insured commercial banks: Discount rates: Dec. 31, 1938 381 Federal Reserve banks: June 30, 1939 877 Discussion of 840 Interest on. (See Interest on deposits; In- Monthly table 55, 131, 207, 315, terest rates.) 415, 509, 586, 665, 797, 907, 997, 1113 Member banks: Foreign central banks: All banks on call dates: Prevailing rates 82, 158, 234, 344, Dec. 31, 1938 264 445, 539, 617, 697, 829, 939, 1029, 1145 Mar. 29, 1939 488 Discounts and advances: June 30, 1939 727 Federal Reserve banks for member banks: Monthly table . 49, 125, 201, 309, 409, Board of Governors statement on 840 503, 580, 659, 791, 901, 991, 1107 Credit union notes. (Ruling.) 361 Charts 244, 712 Regulation G repealed 361 Classes of banks . 44, 120, 196, 304, 404, Distribution: 498, 575, 654, 786, 896, 986, 1102 National summary 9,98, 174, 250, Discussion of 456, 631, 709, 713 357, 463, 556, 632, 716, 846, 957, 1050 Larger and smaller centers . . . . 44, 120, Dividends: 196, 304, 404, 498, 575, 654, 786, 896. Federal Reserve banks: 986, 1102 Jan.-June, 1939 640 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1160 INDEX TO VOLUME 25 Page Page Dividends—Continued. Employment, Factory: Member banks: Charts 9, 98, 174, 250, 458, 463, 632 1938 372-379 Discussion of 168, 457 Jan.-June, 1939 875 Indexes: Dollar, Weight of: Adjusted: Act extending powers relating to alteration By industries, monthly figures. . 65, 141, of 638 217, 325, 425, 519, 596, 675, 807, Durable goods: 917, 1007, 1123 Estimated expenditures for new durable Total, monthly figures 62, 138, goods, 1919-1938 731-736 214, 322, 422, 516, 593, 672, 804, Factory employment index: 914, 1004, 1120 Adjusted 65, 141, 217, 325, Unadjusted: 425, 519, 595, 675, 807, 917, 1007, 1123 By industries, monthly figures. . 67, 143, Unadjusted 67, 143, 219, 327, 219, 327, 427, 521, 598, 677, 809, 427, 521, 598, 677, 908, 919, 1009, 1125 919, 1009, 1125 Factory payrolls index 67, 143, 219, 327, Total, yearly and monthly figures. . 62, 427, 521, 598, 677, 809, 919, 1009, 1125 138, 214, 322, 422, 516, 593, 672, Prices, Discussion of. . . 953 804, 914, 1004, 1120 Production index: National summary 9, 98, 174, Adjusted: 249, 462, 556, 632, 715, 1050 1919-1938 21 England. (See United Kingdom.) Monthly table 139, 215, 323, 423, Estonia: 517, 594, 673, 805, 915, 1005, 1121 Bank of: Discussion of 20 Condition 78, 154, 230, 340, Unadjusted: 441, 535, 613, 693, 825, 935, 1026, 1142 1923-1938 21 Discount rate 82, 158, 234, 344, Monthly table 140, 216, 324, 424, 445, 539, 617, 697, 829, 939, 1029, 1145 518, 595, 674, 806, 916, 1006, 1122 Exchange stabilization funds: Earmarked gold. (See Gold: Earmarked.) Gold reserves 606, 686, 818, 928, 1018, 1134 Earnings and expenses: Executive officers of member banks: Federal Reserve banks: Definition of "Executive officer" changed. Regulation O, amended 636 Jan.-June, 1939 640 Loans to: Member banks: Public act extending period 559 1938 and 1937 372-379 Expenditures, U. S. Treasury. (See Treasury By classes of banks 374 finance: Expenditures.) By districts 375-377 Expenses. (See Earnings and expenses.) By six-month periods during 1938 378 Export-Import Bank: Discussion 372 Act continuing functions 254 Jan.-June, 1939 874-875 Loans outstanding, Dec. 31, 1938 365, 371 Chart 373 Exports. (See Foreign trade.) Operating ratios, 1938: Factory employment. (See Employment, Factory.) By size groups and geographic Failures, Bank. (See Banks: Suspensions.) divisions 481-486 Failures, Commercial. (See Commercial failures.) Eccles, Marriner S.: Farm Credit Administration: Introductory remarks at ceremony on 25th Banks and corporations: anniversary of signing of Federal Reserve Assets and liabilities. ... 60, 136, 212, 320, Act 13 420, 514, 591, 670, 802, 912, 1002, 1118 Ecuador: Loans and discounts outstanding, by insti- Central Bank of: tutions 61, 137, 213, 321, Condition 78, 154, 230, 340, 421, 515, 592, 671, 803, 913, 1003, 1119 441, 535, 613, 693, 825, 935, 1026, 1142 Summary of operations of institutions un- Discount rate 82, 158, 234, 344, der, 1938 365-370 445, 539, 617, 697, 829, 939, 1029, 1145 (See also Governmental corporations and Gold movements to and from U. S.. . . 46, 122, credit agencies.) 198, 306, 406, 500, 577, 656, 788, 898, Farm credit agencies: 988, 1104 Assets and liabilities 60, 136, 212, 320, Egypt: 420, 514, 591, 670, 802, 912, 1002, 1118 Foreign exchange rates 84, 160, 236, 346, Summary of operations, 1938 365-371 447, 541, 619, 700, 831, 941, 1031, 1147 Farm mortgage agencies: National Bank of: Assets and liabilities 60, 136, 212, 320, Condition 78, 154, 230, 340, 420, 514, 591, 670, 802, 912, 1002, 1118 441, 535, 613, 693, 825, 935, 1026, 1142 Summary of operations, 1938 365-371 Gold reserves 74, 150, 226, 336, Farm products: 434, 528, 606, 686, 818, 928, 1018, 1134 Wholesale price indexes: El Salvador: Principal countries 85, 161, 237, 347, Central Reserve Bank of: 448, 542, 620, 701, 832, 942, 1032, 1148 Condition . 78, 154, 230, 340, United States 71, 147, 223, 331, 441, 535, 613, 693, 825, 935, 1026, 1142 431, 525, 602, 681, 813, 923, 1013, 1129 Discount rate 82, 158, 234, 344, Farm Security Administration: 445, 539, 617, 697, 829, 939, 1029, 1145 Summary of operations, 1938 370-371 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX TO VOLUME 25 1161 Page Federal Advisory Council: Federal Reserve banks—Continued. Meeting 172 Earnings and expenses: Members 88, 164, 240, 350, Jan.-June, 1939 640 452, 546, 624, 704, 836, 946, 1036, 1151 Officers 89, 165, 241, 351, Federal Deposit Insurance Corporation: 453, 547, 625, 705, 837, 947, 1037, 1152 Condition report form revised 22 Presidents: Deposits covered: survey, Sept. 21, 1938 101-104 Death of B. A. McKinney, Dallas 356 Federal Reserve membership requirement Death of Oscar Newton, Atlanta 172 for State insured banks repealed 559 R. R. Gilbert, appointed President, Federal Farm Mortgage Corporation: Dallas 356 Guaranteed obligations outstanding .58, 134, Robert S. Parker, appointed President, 210, 318, 418, 512, 589, 668, 800, Atlanta . . . 173 910, 1000, 1116 Vice Presidents: Summary of operations, 1938 369-370 E. B. Stroud appointed First Vice Presi- Federal Home Loan Bank Board: dent, Federal Reserve Bank of Dallas 554 Loans outstanding, by' institutions 61, 137, W. S. McLarin, Jr., appointed First 213, 321, 421, 515, 592, 671, 803, Vice President, Federal Reserve 913, 1003, 1119 Bank of Atlanta 956 Summary of operations of institutions un- Federal Reserve chart book: der, 1938 368 Changes in member bank series 332, 1015 (See also Governmental corporations and Statistics 111-112, 224, 333, 432, 526, credit agencies.) 603-604, 683, 815, 925, 1015, 1131-1132 Federal Home Loan Banks: Federal Reserve directory 88, 164, 240, 350, Loans to members 61, 137, 213, 321, 452, 546, 624, 704, 836, 946, 1036, 1151 421, 515, 592, 671, 803, 913, 1003, 1119 Federal Reserve districts: Federal Housing Administration: Map showing districts on back cover of each Summary of operations, 1938 369 bulletin. Federal intermediate credit banks: Federal Reserve notes: Loans and discounts outstanding. .61, 137, 213, Agents' accounts 43, 119, 195, 303, 321, 421, 515, 592, 671, 803, 913, 1003, 1119 403, 497, 574, 653, 785, 895, 985, 1101 Federal land banks and Land Bank Commissioner: Circulation: Loans outstanding 61, 137, 213, 321, Actual: 421, 515, 592, 671, 803, 913, 1003, 1119 All banks combined, end of month Summary of operations, 1938 366-370 and Wednesday figures . . . 39, 115, Federal National Mortgage Association: 191, 299, 399, 493, 570, 649, 781, 891, Summary of operations, 1938 365, 368 981, 1097 Federal Open Market Committee: Each bank, Wednesday figures ... 43, Members and officers 88, 164, 240, 350, 119, 195, 303, 403, 497, 574, 653, 785, 452, 546, 624, 704, 836, 946, 1036, 1151 895, 985, 1101 Policy statement 6 Outside Treasury and Federal Reserve Statement on reduction of holdings of Treas- banks, end of month figures. .45, 121, 197, ury bills 630 305, 405, 499, 576, 655, 787, 897, 987, 1103 Federal Reserve Act: Collateral security: Amendments, 76th Congress: Direct obligations of U. S. may be used Federal Reserve membership require- as, until June 30, 1941 ' 637 ment for State insured banks repealed 559 Wednesday figures 43, 119, 195, 303, Loans to executive officers of member 403, 497, 574, 653, 785, 895, 985, 1101 banks extended 559 Redemption fund: Ceremony on 25th Anniversary of the sign- All banks combined, end of month and ing of 13-16 Wednesday figures 39, 115, 191, Federal Reserve Agents: 299, 399, 493, 570, 649, 781, 891, 981, 1097 Accounts. (See Federal Reserve notes: Each bank, Wednesday figures . . 40, 116, Agents' accounts.) 192, 300, 400, 494, 571, 650, 782, Appointments. (See Federal Reserve 892, 982, 1098 banks: Chairmen and Federal Reserve Federal Reserve System: Agents.) State bank membership: Federal Reserve bank notes: Membership requirement for State in- Circulation 45, 121, 197, 305, sured banks repealed 559 405, 499, 576, 655, 787, 897, 987, 1103 Regulation H, revised 1054-1064 Federal Reserve banks: "Federal Reserve System—Its Purposes and Branches, Managing directors of 89, 165, Functions" 461 241, 351, 453, 547, 625, 705, 837, Federal Savings and Loan Associations: 947, 1037, 1152 Mortgage loans 61, 137, 213, 321, Chairmen and Federal Reserve Agents: 421, 515, 592, 671, 803, 913, 1003, 1119 Designation of 7 Fiduciary powers of national banks. (See Trust Retirement of 8 powers of national banks.) Deputy Chairmen, appointments 7 Financial conditions. (See Business and credit Directors: conditions.) Class A and B, election of 6 Financial legislation. (See Banking and finan- Class C, appointments 7, 248, 554, 714 cial legislation.) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1162 INDEX TO VOLUME 25 Page Page Finland: Foreign trade of United States: Bank of: Chart 552, 1047 Condition 78, 154, 230, 340, Discussion of 551-552, 955, 1048 441, 535, 613, 693, 825, 935, 1026, 1142 Forest products: Discount rate 82, 158, 234, 344, Freight-car loadings indexes. . 70, 146, 222, 330, 445, 539, 617, 697, 829, 939, 1029, 1145 430, 524, 601, 680, 812, 922, 1012, 1128 Foreign exchange rates 84, 160, 236, 346, France: 447, 541, 619, 700, 831, 941, 1031, 1147 Bank of: Floating money, Discussion of 93-96 Annual report, 1938 272-278 Food and food products: Condition 77, 153, 229, 339, 440, 534, 612, 692, 824, 934, 1024, 1140 Factory employment index: Discount rate: Adjusted • 65, 141, 217, 325, Changes in 82, 158 425, 519, 596, 675, 807, 917, 1007, 1123 Unadjusted 67, 143, 219, 327, Monthly table 82, 158, 234, 344, 427, 521, 598, 677, 809, 919, 1009, 1125 445, 539, 617, 697, 829, 939, 1029, 1145 Factory payrolls index 67, 143, 219, 327, Gold reserves 74, 150, 226, 336, 427, 521, 598, 677, 809, 919, 1009, 1125 434, 528, 606, 686, 818, 928, 1018, 1134 Prices, Discussion of 954 Banking and financial legislation: Production indexes: Sept. 1, 1939. Decree and conventions. Adjusted 63, 139, 215, 323, Issuance of 5, 10 and 20 franc notes 423, 517, 594, 673, 805, 915, 1005, 1121 to replace small coins. Gold reserve Unadjusted 64, 140, 216, 324, requirement of Bank of France sus- 424, 518, 595, 674, 806, 916, 1006, 1122 pended. Conventions between Gov- Retail price index, principal countries 86, 162, ernment and Bank of France and 238, 348, 449, 543, 621, 702, 833, 943, 1033, 1149 Bank of Algeria approved 976 Wholesale price indexes: Nov. 12, 1939. Convention and decree. Principal countries 85, 161, 237, 347, Gold revalued. Advances to Govern- 448, 542, 620, 701, 832, 942, 1032, 1148 ment increased 29 United States 71, 147, 223, 331, Commercial banks 83, 159, 235, 345, 431, 525, 602, 681, 813, 923, 1013, 1129 446, 540, 618, 698, 830, 940, 1030, 1146 Cost of living index 86, 162, 238, 348, Forbes, Allan, reelected Class A Director, Fed- 449, 543, 621, 702, 833, 943, 1033, 1149 eral Reserve Bank of Boston 6 Economic developments, Discussion of 1047 Foreign banks: Exchange Stabilization Fund: Central banks: Gold reserves . 606, 686, 818, 928, 1018, 1134 Resources in United States: Financial conditions, Discussion of 94 Chart of 549 Foreign exchange rates 84, 160, 236, 346, Discussion of 549-551 447, 541, 619, 700, 831, 941, 1031, 1147 (See also France, Bank of; etc.) Foreign exchange regulations 1041 Commercial banks, condition. .82, 158, 234, 344, Gold movements to and from U. S.. .46, 122, 198, 445, 539, 617, 697, 829, 939, 1029, 1145 306, 406, 500, 577, 656, 788, 898, 988, 1104 Deposits of, held by Federal Reserve banks: Money rates 81, 157, 233, 343, All banks combined, end of month and 445, 538, 616, 696, 838, 938, 1028, 1144 Wednesday figures 39, 115, 191, Retail food price index 86, 162, 238, 348, 299, 399, 493, 570, 649, 781, 891, 981, 1097 449, 543, 621, 702, 833, 943, 1033, 1149 Each bank, Wednesday figures, . 40,116,192, Security prices 86, 162, 238, 348, 300, 400, 494, 571, 650, 782, 892, 982, 1098 449, 543, 621, 702, 833, 943, 1933, 1149 Deposits of, held by member banks: Wholesale price indexes 85, 161, 237, 347, All banks on call dates: 448, 542, 620, 701, 832, 942, 1032, 1148 Dec. 31, 1938 264 Freight-car loadings : Mar. 29, 1939 488 Charts 556, 633, 715, 958 June 30, 1939 727 Indexes: Monthly table 49, 125, 201, 309, By classes 70, 146, 222, 330, 409, 503, 580, 659, 791, 901, 991, 1107 430, 524, 601, 680, 812, 922, 1012, 1128 Discussion of 711, 842 Total 62, 138, 214, 322, Reporting banks: 422, 516, 593, 672, 804, 914, 1004, 1120 All banks, N. Y. C. and outside National summary 9, 98, 174, 250, N. Y. C, monthly and Wednes- 357, 463, 556, 633, 716, 846, 957, 1050 day figures 51, 127, 203, 311, Fuel and lighting materials: 411, 505, 582, 661, 793, 903, 993, 1109 Prices, Discussion of 954 By districts and for Chicago, Wed- Wholesale price indexes 71, 147, 223, 331, nesday figures 53, 129, 205, 313, 431, 525, 602, 681, 813, 923, 1013, 1129 413, 507, 584, 663, 795, 905, 995, 1111 Foreign exchange: Fuels, Manufactured: Rates: Production indexes: Chart 353, 1040 Adjusted 63 Discussion of ' 842, 1039-1041 Unadjusted 64 Monthly table 84, 160, 236, 346, Geery, W. B., retirement as Class C Director 447, 541, 619, 700, 831, 941, 1031, 1147 and Chairman and Federal Reserve Agent, Regulations: Minneapolis 8 France 1041 General fund balance, U. S. Treasury. (See United Kingdom 1039-1041 Treasury finance: General fund balance.) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX TO VOLUME 25 1163 Page Page George, E. T., reelected Class B Director, Fed- Gold—Continued. eral Reserve Bank of Atlanta 7 Reserves: Germany: Central banks and governments: Banking and financial legislation: Discussion of 550-551 June 15, 1939. New German Reichs- Monthly table 74, 150, 226, 336, bank law 737 434, 528, 606, 686, 818, 928, 1018, 1134 Commercial banks 83, 159, 235, 345, United States 74, 150, 226, 336, 446, 540, 618, 698, 830, 940, 1030, 1146 434, 528, 606, 686, 818, 928, 1018, 1134 Cost of living index 86, 162, 238, 348, Stock, Monetary in U. S.: 449, 543, 621, 702, 833, 943, 1033, 1149 Analysis of changes in. . . 46, 122, 198, 306, Foreign exchange rates 84, 160, 236, 346, 406, 500, 577, 656, 788, 898, 988, 1104 447, 541, 619, 700, 831, 941, 1031, 1147 Discussion of 709 Gold imports and exports 76, 152, 228, 338, End of month and Wednesday figures. . .38, 436, 530, 608, 688, 820, 930, 1020, 1136 114, 190, 298, 398, 492, 569, 648, 780, 890, Gold movements to and from U. S. 46, 122, 980, 1096 198, 306, 406, 500, 577, 656, 788, 898, 988, 1104 Gold certificates: Money rates 81, 157, 233, 343, Circulation 45, 121, 197, 305, 445, 538, 616, 696, 828, 938, 1028, 1144 405, 499, 576, 655, 787, 897, 987, 1103 Reichsbank: Federal Reserve bank holdings: Annual report, 1938 773-778 All banks combined, end of month and Condition 78, 154, 230, 340, Wednesday figures 39, 115, 191, 441, 535, 613, 693, 825, 935, 1025, 1141 299, 399, 493, 570, 649, 781, 891, 981, 1097 Discount rate 82, 158, 234, 344, Each bank, Wednesday figures. 40,116, 192, 445, 539, 617, 697, 829, 939, 1029, 1145 300, 400, 494, 571, 650, 782, 892, 982, 1098 Gold reserves 74, 150, 226, 336, Gold Reserve Act of 1934: 434, 528, 606, 686, 818, 928, 1018, 1134 Amendment extending powers 638 Law governing Reichsbank, June 15, Government bonds. (See United States Govern- 1939 737 ment securities.) Retail food price index 86, 162, 238, 348, Government debt. (See Treasury finance: Pub- 449, 543, 621, 702, 833, 943, 1033, 1149 lic debt.) Security prices 86, 162, 238, 348, Governmental corporations and credit agencies: 449, 543, 621, 702, 833, 943, 1033, 1149 Assets and liabilities 60, 136, 212, 320, Wholesale price indexes 85, 161, 237, 347, 420, 514, 591, 670, 802, 912, 1002, 1118 448, 542, 620, 701, 832, 942, 1032, 1148 Summary of operations, 1938 365-371 Gilbert, R. R., appointed President of Federal Grain: Reserve Bank of Dallas 356 Freight-car loadings indexes. . 70, 146, 222, 330, Glass: 430, 524, 601, 680, 812, 922, 1012, 1128 Factory employment index: Wholesale price index 71, 147, 223, 331, Adjusted 65, 141, 217, 325, 431, 525, 602, 681, 813, 923, 1013, 1129 • 425, 519, 596, 675, 807, 917, 1007, 1123Great Britain. (See United Kingdom.) Unadjusted 67, 143, 219, 327, Greece: 427, 521, 598, 677, 809, 919, 1009, 1125 Bank of: Factory payrolls index 67, 143, 219, 327, Condition 78, 154, 230, 340, 427, 521, 598, 677, 809, 919, 1009, 1125 441, 535, 613, 693, 825, 935, 1026, 1142 Production index: Discount rates 82, 158, 234, 344, Adjusted 63, 139, 215, 323, 445, 539, 617, 697, 829, 939, 1029, 1145 423, 517, 594, 673, 805, 915, 1005, 1121 Gold reserves 74, 150, 226, 336, Unadjusted 64, 140, 216, 324, 434, 528, 606, 686, 818, 928, 1018, 1134 424, 518, 595, 674, 806, 916, 1006, 1122 Foreign exchange rates 84, 160, 236, 346, Glass, Carter, Bas-relief of: 447, 541, 619, 700, 831, 941, 1031, 1147 Dedication of 15-16 Group banks: Photograph of facing 1 Number, deposits, branches, by States and Gold: geographic divisions, Dec. 31, 1938 480 Earmarked: Guaranteed obligations of the U. S. (See Treas- Discussion of 550, 631 ury finance: Guaranteed obligations.) Monthly table 46, 122, 198, 306, Hay crop reports 72, 682, 814, 924, 1014, 1130 406, 500, 577, 656, 788, 898, 988, 1104 Imports and exports: Holden, St. George, reappointed Deputy Chair- Principal countries 75, 151, 227, 337, man, Federal Reserve Bank of San Francisco 7 435, 529, 607, 687, 819, 929, 1019, 1135 Home mortgage and housing agencies: United States: Assets and liabilities 60, 136, 212, 320, Gross 46, 122, 198, 306, 420, 514, 591, 670, 802, 912, 1002, 1118 406, 500, 577, 656, 788, 898, 988, 1104 Summary of operations, 1938 365-369 Net 75, 151, 227, 337, Home Owners' Loan Corporation: 435, 529, 607, 687, 819, 929, 1019, 1135 Assets and liabilities 60, 136, 212, 320, Movement to U. S., Discussion of 92-96, 420, 514, 591, 670, 802, 912, 1002, 1118 247, 353, 455, 549, 709-712, 841, 1039 Guaranteed obligations outstanding 58 Production: 134, 210, 318, 418, 512, 589, 668, 800, United States 75, 151, 227, 337, 910, 1000, 1116 435, 529, 607, 687, 819, 929, 1019, 1135 Mortgage loans 61, 137, 213, 321, World 75, 151, 227, 337, 421, 515, 592, 671, 803, 913, 1003, 1119 435, 529, 607, 687, 819, 929, 1019, 1135 Summary of operations, 1938 365-368 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1164 INDEX TO VOLUME 25 Page Pago Hong Kong: Industrial advances of Federal Reserve banks: Foreign exchange rates 84, 160, 236, 346, All banks combined: 447, 541, 619, 700, 831, 941, 1031, 1147 End of month and Wednesday figures. 39, Gold movements to and from U. S. 46, 115, 191, 299, 399, 493, 570, 649, 781, 122, 198, 306, 406, 500, 577, 656, 788, 891, 981, 1097 898, 988, 1104 Number and amounts 43, 119, 195, 303, Housefurnishing goods: 403, 497, 574, 653, 785, 895, 985, 1101 Wholesale price indexes 71, 147, 223, 331, Each bank, Wednesday figures. . .40, 116, 192, 431, 525, 602, 681, 813, 923, 1013, 1129 300, 400, 494, 571, 650, 782, 892, 982, 1098 Hungary: Maturity distribution 39, 115, 191, 299, Foreign exchange rates 84, 160, 236, 346, 399, 493, 570, 649, 781, 891, 981, 1097 447, 541, 619, 700, 831, 941, 1031, 1147 Rates 55, 131, 207, 315, Money rates 81, 157, 233, 343, 415, 509, 586, 665, 797, 907, 997, 1113 445, 538, 616, 696, 828, 938, 1028, 1144 Industrial loans. (See Commercial, industrial National Bank of: and agricultural loans; Industrial advances of Condition 78, 154, 230, 340, Federal Reserve banks.) 441, 535, 613, 693, 825, 935, 1026, 1142 Industrial production. (See Production, Indus- Discount rates 82, 158, 234, 344, trial.) 445, 539, 617, 697, 829, 939, 1029, 1145 Installment loans: Gold reserves 74, 150, 226, 336, Term loan survey 562 434, 528, 606, 683, 818, 928, 1018, 1134 Insurance agencies of United States Government: Imports. (See Foreign trade.) Assets and liabilities 60, 136, 212, 320, Income: 420, 514, 591, 670, 802, 912, 1002, 1118 International income position of U. S. 645 Summary of operations, 1938 366 Payments to individuals: Insurance of deposits: Charts 168, 455 Federal Reserve membership requirement Discussion of 167 for State banks repealed 559 Tax receipts. (See Treasury finance: Re- Survey of number and amounts of deposits, ceipts.) by size and classes, by types of banks, by Index numbers: States, Sept. 21, 1938 101-104 Cost of living 86, 162, 238, 348, Insured commercial banks: 449, 543, 621, 702, 833, 943, 1033, 1149 Assets and liabilities: Department store sales and stocks. .70, 146, 222, Dec. 31, 1938 381 330, 430, 524, 680, 812, 922, 1012, 1128 June 30, 1939 877 Factory employment: Deposits insured: survey, Sept. 21,1938 .101-104 Adjusted 65, 141, 217, 325, Number of: 425, 519, 596, 675, 807, 917, 1007, 1123 Dec. 31, 1938 381 Unadjusted 67, 143, 219, 327, June 30, 1939 877 427, 521, 598, 677, 809, 919, 1009, 1125 Interest on deposits: Factory payrolls 67, 143, 219, 327, Credit for obtaining new depositor not in 427, 521, 598, 677, 809, 919, 1009, 1125 conflict with Regulation Q. (Ruling.) . . . 559 Freight-car loadings 70, 146, 222, 330, Savings accounts: 430, 524, 601, 680, 812, 922, 1012, 1128 Payment of interest after death of de- Industrial production: positor. (Ruling.) 851 Adjusted 63, 139, 215, 323, Transfers to FHA mortgages. (Ruling.) 850 423, 517, 594, 673, 805, 915, 1005, 1121 Time certificates of deposits, Payment or re- Unadjusted 64, 140, 216, 324, newal of those maturing on Sunday. 424, 518, 595, 674, 806, 916, 1006, 1122 (Ruling.) 850 Retail food prices 86, 162, 238, 348, Interest on public debt. (See Treasury finance: 449, 543, 621, 702, 833, 943, 1033, 1149 Public debt.) Security prices 86, 162, 238, 348, Interest rates: 449, 543, 621, 702, 833, 943, 1033, 1149 Charged customers by banks . .56, 132, 208, 316, Wholesale prices 85, 161, 237, 347, 416, 510, 587, 666, 798, 908 448, 542, 620, 701, 832, 942, 1032, 1148 Commercial loan rates: India, British: 1928-1939: 963-969 Foreign exchange rates 84, 160, 236, 346, Chart 963 447, 541, 619, 700, 831, 941, 1031, 1147 Cities included 965 Gold imports and exports 76, 152, 228, 338, Comparable figures beginning 1928 966 436, 530, 608, 688, 820, 930, 1020, 1136 Computation of averages 965 Gold movements to and from U. S. 46, 122, 198, Definition of commercial loans . . 964 306, 406, 500, 577, 656, 788, 898, 988, 1104 Movements in rates 964 Gold production 75, 151, 227, 337, Revised figures compared with for- 435, 529, 607, 687, 819, 929, 1019, 1135 mer rates 966 Reserve Bank of: Schedule 965, 968 Condition 78, 154, 230, 340, Table of figures, 1928-1939 969 441, 535, 613, 693, 825, 935, 1026, 1142 Sept. 1-15, 1938: 17-19 Discount rates 82, 158, 234, 344, Chart 17 445, 539, 617, 697, 829, 939, 1029, 1145 Geographical differences 18 Gold reserves 74,150, 226, 336, Level of customers' rates 18 434, 528, 606, 686, 818, 928, 1018, 1134 Method of reporting 17 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX TO VOLUME 25 1165 Page Interest rates— -Continued. Iron and Steel—Continued. Commercial loan rates—Continued. Factory payrolls index 67, 143, 219, 327, Sept. 1-15, 1938—Continued. 427, 521, 598, 677, 809, 919, 1009, 1125 Variation in rates by size of loans 18 Prices, Discussion of 953 Volume of loans covered by survey 18 Production index: Mar. 16-31 and June 1-15, 1939 725-726 Adjusted 63, 139, 215, 323, Monthly table 998 423, 517, 594, 673, 805, 915, 1005, 1121 Government securities, Discussion of . .2, 3, 628 Unadjusted 64, 140, 216, 324, Open market, in N. Y. C 56, 132, 208, 316, 424, 518, 595, 674, 806, 916, 1006, 1122 416, 510, 587, Q66 y 798, 908, 998, 1114 Wholesale price index 71, 147, 223, 331, Term loans survey 562 431, 525, 602, 681, 813, 923, 1013, 1129 Time deposits 55, 131, 207, 315, Italy: 415, 509, 586, 665, 797, 907, 997, 1113 Bank of: (See also Discount rates.) Discount rates 82, 158, 234, 344, Interlocking bank directorates. (See Bank di- 445, 539, 617, 697, 829, 939, 1029, 1145 rectorates, Interlocking.) Gold reserves 74, 150, 226, 336, International capital movements: 434, 528, 606, 686, 818, 928, 1018, 1134 Discussion of 92-96 Foreign exchange rates 84, 160, 236, 346, International capital position of United States 645 447, 541, 619, 700, 831, 941, 1031, 1147 International capital transactions of United Money rates 81, 157, 233, 343, States: 445, 538, 616, 696, 828, 938, 1028, 1144 Statistics: Wholesale price indexes 85, 161, 237, 347 July-Sept., 1938 32-35 448, 542, 620, 701, 832, 942, 1032, 1148 Oct.-Nov., 1938 184-187 Japan: 1938 288-296 Bank of: Description of tables 284-287 Condition 78, 154, 230, 340, Monthly table 437, 531, 609, 689, 441, 535, 613, 693, 825, 935, 1026, 1142 821, 931, 1021, 1137 Discount rates 82, 158, 234 344 International income position of United States. . 645 445, 539, 617, 697, 829, 939, 1029, 1145 Investments: Gold reserves 74, 150, 226, 336 All banks in U. S. on call dates: 434, 528, 606, 686, 818, 928, 1018, 1134 Sept. 28, 1938 24-28 Foreign exchange rates 84, 160, 236, 346, Dec. 31, 1938 382-386 447, 541, 619, 700, 831, 941, 1031, 1147 Mar. 29, 1939 563-567 Gold movements to and from U. S.. .46, 122 198 June 30, 1939 970-974 306, 406, 500, 577, 656, 788, 898, 988, 1104 Monthly table 47, 123, 199, 307, 407, Money rates 81, 157, 233, 343 501, 578, 657, 789, 899, 989, 1105 445, 538, 616, 696, 828, 938, 1028, 1144 American investment abroad: Wholesale price indexes 85, 161, 237, 347 Chart 95 448, 542, 620, 701, 832, 942, 1032, 1148 Discussion of 95 Java: Tables 645 Bank of: Foreign investment in U. S.: Condition 78, 154, 230, 340 Chart 95 441, 535, 613, 693, 825, 935, 1027, 1143 Discussion of 96, 554, 1041-1043 Discount rates 82, 158, 234, 344 Table 645 445, 539, 617, 697, 829, 939, 1029, 1145 Member banks: Gold reserves 74, 150, 226, 336 All banks on call dates: 434, 528, 606, 686, 818, 928, 1018, 1134 Dec. 31, 1938 264 Johnson, L. E. reelected Class A Director, Fed- Mar. 29, 1939 489 eral Reserve Bank of Richmond 6 June 30, 1939 728 Johnston, Oscar G., appointed Deputy Chairman, Monthly table . . 48, 124, 200, 308, 408, Federal Reserve Bank of St. Louis 7 502, 579, 658, 790, 900, 990, 1106 Klages, R. E., appointed Deputy Chairman, Fed- Chart 245, 1051 eral Reserve Bank of Cleveland * 7 Discussion of 244-245, 631, 713-714 Krost, Martin 178, 265, 871 Maturity distribution, Discussion of. . . 260 Land Bank Commissioner loans. (See Federal Reporting banks: land banks and Land Bank Commissioner: All banks, N. Y. C. and outside Loans outstanding.) N. Y. C, monthly and Wednes- Lassiter, Robert, redesignated Chairman and day figures .50, 126, 202, 310, 410, Federal Reserve Agent, Richmond 7 504, 581, 660, 792, 902, 992, 1108 Latvia: By districts and for Chicago, Wed- Bank of: nesday figures 52, 128, 204, 312, 412, Condition 78, 154, 230, 340, 506, 583, 662, 794, 904, 994, 1110 441, 535, 613, 693, 825, 935, 1027, 1143 (See also Loans and investments.) Discount rates 82, 158, 234, 344, Iron and steel: 445, 539, 617, 697, 829, 939, 1029, 1145 Factory employment index: Laws and legislation. (See Banking and finan- Adjusted 65, 141, 217, 325, cial legislation.) 425, 519, 596, 675, 807, 917, 1007, 1123 Lead production index: Unadjusted 67, 143, 219, 327, Adjusted 63, 139, 215, 323, 427, 521, 598, 677, 809, 919, 1009, 1125 423, 517, 594, 673, 805, 915, 1005, 1121 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1166 INDEX TO VOLUME 25 Page Page Lead production index—Continued. Loans and investments—Continued. Unadjusted 64, 140, 216, 324, All banks in U. S. on call dates—Continued. 424, 518, 595, 674, 806, 916, 1006, 1122 Monthly table 47, 123, 199, 307, Leather and leather products: 407, 501, 578, 657, 789, 899, 989, 1105 Factory employment index: Insured commercial banks: Adjusted 65, 141, 217, 325, Dec. 31, 1938 381 425, 519, 596, 675, 807, 917, 1007, 1123 June 30, 1939 877 Unadjusted 67, 143, 219, 327, Member banks: 427, 521, 598, 677, 809, 919, 1009, 1125 All banks on call dates: Factory payrolls index 67, 143, 219, 327, Dec. 31, 1938 264 427, 521, 598, 677, 809, 919, 1009, 1125 Mar. 29,1939 488-489 Prices, Discussion of 951 June 30,1939 727-728 Production index: Monthly table 48, 124, 200, 308, Adjusted 63, 139, 215, 323, 408, 502, 579, 658, 790, 900, 990, 1106 423, 517, 594, 673, 805, 915, 1005, 1121 Charts 9, 175, 244, 358, 556, 633, 712, 958 Unadjusted 64, 140, 216, 324, Discussion of 245-256, 354, 456, 631, 713-714 424, 518, 595, 674, 806, 916, 1006, 1122 Reporting banks: Wholesale price index 71, 147, 223, 331, All banks, N. Y. C. and outside 431, 525, 602, 681, 813, 923, 1013, 1129 N. Y. C, monthly and Wednesday figures 50,126, 202, 310, Liabilities. (See Condition statements.) 410, 504, 581, 660, 792, 902, 992, 1108 Lichtenstein, Walter, reappointed Secretary of By districts and for Chicago, Wed- Federal Advisory Council 172 nesday figures 52, 128, 204, 312, 412, 50.6, 583, 662, 794, 904, 994, 1110 Liquidity of member banks: Mutual savings banks: Discussion of 262 Sept. 28, 1938 28 Lithuania: Dec. 31, 1938 386 Bank of: Mar. 29, 1939 567 Condition 78, 154, 230, 340, June 30, 1939 974 441, 535, 613, 693, 825, 935, 1027, 1143 National member banks: Discount rates: Sept. 28, 1938 26 Changes in 539, 697 Dec. 31, 1938 384 Monthly table 82, 158, 234, 344, Mar. 29, 1939 565 445, 539, 617, 697, 829, 939,1029,1145 June 30, 1939 972 Livestock: Private banks: Freight-car loadings indexes. . .70, 146, 222, 330, Sept. 28, 1938 28 430, 524, 601, 680, 812, 922, 1012, 1128 Dec. 31, 1938 386 Wholesale price index 71, 147, 223, 331, Mar. 29, 1939 567 431, 525, 602, 681, 813, 923, 1013, 1129 June 30, 1939 974 Loans: State banks: Agricultural. (See Commercial, industrial Sept. 28, 1938 27 and agricultural loans.) Dec. 31, 1938 385 Brokers'. (See Brokers and dealers in se- Mar. 29, 1939 566 curities: Loans to.) June 30, 1939 973 Commercial. (See Commercial, industrial Loeb, Howard A., reelected Vice President of and agricultural loans.) Federal Advisory Council 172 Executive officers of member banks: Longstreet, Victor M 963 Public act extending period 559 Lumber and lumber products: Industrial. (See Commercial, industrial and Factory employment index: agricultural loans; Industrial advances of Adjusted 65, 141, 217, 325, Federal Reserve banks.) 425, 519, 596, 675, 807, 917, 1007, 1123 Member banks: Unadjusted 67, 143, 219, 327, Classification changes 259 427, 521, 598, 677, 809, 919, 1009, 1125 Real estate. (See Real estate: Loans.) Factory payrolls index 67, 143, 219, Security. (See Securities: Loans on.) 327, 427, 521, 598, 677, 809, 919, 1009, 1125 Stock and bond collateral loans. (Ruling.) 362 Wholesale price index 71, 147, 223, Term loans to commercial and industrial 331, 431, 525, 602, 681, 813, 923, 1013, 1129 concerns 560-562 McAdoo, W. G.: Total: Letter on 25th anniversary of signing of Reporting member banks: Federal Reserve Act 13 All banks, N. Y. C. and outside McCabe, Thomas B., designated Chairman and N. Y. C, monthly and Wednes- Federal Reserve Agent, Philadelphia 7 day figures 50, 126, 202, 310, McCormick, Charles P., appointed Class C Di- 410, 504, 581, 660, 792, 902, 992, 1108 rector, Federal Reserve Bank of Richmond . . 714 By districts and for Chicago, Wed- Machinery: nesday figures 52, 128, 204, 312, 412, 506, 583, 662, 794, 904, 994, 1110 Factory employment index: Loans and investments: Adjusted 65, 141, 217, 325, All banks in U. S. on call dates: 425, 519, 596, 675, 807, 917, 1007, 1123 Sept. 28, 1938 24-28 Unadjusted 67, 143, 219, 327 Dec. 31, 1938 382-386 427, 521, 598, 677, 809, 919, 1009, 1125 Mar. 29, 1939 563-567 Factory payrolls index 67, 143, 219, 327, June 30, 1939 970-974 427, 521, 598, 677, 809, 919, 1009, 1125 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX TO VOLUME 25 1167 Page Page McKinney, B. A., Death of 356 Member banks—Continued. McKnight, J. R., elected Class A Director, Fed- Branches—Continued. eral Reserve Bank of Minneapolis 7 Jan.-Sept., 1939 changes 1066 Condition of. (See Condition statements.) McLarin, W. S., Jr., appointed First Vice Presi- Deposits. (See Deposits.) dent, Federal Reserve Bank of Atlanta 956 Earnings and expenses: Maestre, Sidney, elected Class A Director, Fed- 1938 and 1937 372-379 eral Reserve Bank of St. Louis 7 Jan.-June, 1939 875 Malloy, Edwin, reelected Class B Director, Fed- Operating ratios, 1938 481-486 eral Reserve Bank of Richmond 7 Loans and investments. (See Loans and in- Manufactures: vestments.) Production index: National banks. (See National member Adjusted: banks.) By industries, monthly figures. . 63, 139, Number of: 215, 323, 423, 517, 594, 673, 805, 915, 1933-1939 109, 477, 1065 1005, 1121 1938 changes 110 Durable and nondurable, 1919-1938 21 Jan.-Mar., 1939 changes 478 Total, monthly figures. . 62, 138, 214, Jan.-Sept., 1939 changes 1066 322, 422, 516, 593, 672, 804, 914, Monthly table 47, 123, 199, 307, 1004, 1120 407, 501, 578, 657, 789, 899, 989, 1105 Charts 357, 1050 Reserves. (See Reserves.) Unadjusted: State banks. (See State member banks.) By industries, monthly figures. . 64, 140, Suspensions. (See Banks: Suspensions.) 216, 324, 424, 518, 595, 674, 806, 916, Merchandise: 1006, 1122 Exports: Durable and nondurable, 1919-1938 21 Chart of 552 Total, yearly and monthly figures 62, Discussion of 92, 96, 551-552, 138, 214, 322, 422, 516, 593, 672, 804, 949, 955, 1047-1048 914, 1004, 1120 Exports and imports: Margin account statistics 54, 130, 206, 314, Monthly table 70, 146, 222, 330, 414, 508, 585, 664, 796, 906, 996, 1112 430, 524, 601, 680, 812, 922, 1012, 1128 Margin requirements: Freight-car loadings indexes . 70, 146, 222, 330, Banks. Regulation U: 430, 524, 601, 680, 812, 922, 1012, 1128 Stocks registered, Jan. 31, 1939, list Merritt, J. H.: published 173 Reappointed Class C Director, Federal Re- Brokers and dealers in securities. Regula- serve Bank of Dallas 7 tion T: Redesignated Chairman and Federal Re- Capital contribution loans. (Amend- serve Agent, Dallas 7 ment.) 722 Metals and metal products: Cash transactions. (Amendment.) .... 466 Wholesale price indexes 71, 147, 223, 331, Domestic broker permitted to borrow 431, 525, 602, 681, 813, 923, 1013, 1129 from foreign broker. (Ruling.) .... 721 Mexico: Loans by one member of an exchange to Bank of: another. (Amendment.) 466 Discount rate 82, 158, 234, 344, Time extension after expiration of origi- 445, 539, 617, 697, 829, 939, 1029, 1145 nal period (Ruling.) 253 Gold reserves 74, 150, 226, 336, Transacting business through medium 434, 528, 606, 686, 818, 928, 1018, 1134 of a member. (Ruling.) 961 Foreign exchange rates 84, 160, 236, 346, Maturities: 447, 541, 619, 700, 831, 941, 1031, 1147 Bills held by Federal Reserve banks. (See Gold movements to and from U. S. 46, 122, 198, Bills: Federal Reserve bank holdings.) 306, 406, 500, 577, 656, 788, 898, 988, 1104 Public debt. (See Treasury finance: Public Gold production 75, 151, 227, 337, debt.) 435, 529, 607, 687, 819, 929, 1019, 1135 United States Government securities held by Reserve banks. (See United States Middleton, J. D., reelected Class B Director, Government securities: Federal Reserve Federal Reserve Bank of Dallas 7 bank holdings.) Minerals: Member bank reserves, Reserve bank credit, and Production index: related items: Adjusted: Monthly table 38, 114, 190, 298, By kinds, monthly figures 63, 139, 215, 398, 492, 569, 648, 780, 890, 980, 1096 323, 423, 517, 594, 673, 805, 915, Member banks: 1005, 1121 Banking offices: Total, monthly figures. 62, 138, 214, 1933-1939 109, 477, 1065 322, 422, 516, 593, 672, 804, 914, Bills discounted for. (See Bills: Discounted 1004, 1120 by Federal Reserve banks.) Unadjusted: Borrowings at Federal Reserve banks. (See By kinds, monthly figures 64, 140, 216, Borrowings.) 324, 424, 518, 595, 674, 806, 916, Branches: 1006, 1122 1933-1939 109, 477, 1065 Total, yearly and monthly figures 62, 1938 changes 110 138, 214, 322, 422, 516, 593, 672, 804, Jan.-Mar., 1939 changes 478 914, 1004, 1120 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1168 INDEX TO VOLUME 25 Page Page Monetary gold stock. (See Gold: Stock, Mone- Mutual savings banks—Continued, tary.) Number of—Continued. Monetary legislation. (See Banking and finan- 1938 changes 110 cial legislation.) Jan.-Mar., 1939 changes 478 "Monetary measures and objectives'". 363-364, 461 Jan.-Sept., 1939 changes 1066 Money in circulation: Call dates: Chart 355 Sept. 28, 1938 28 Discussion of 354 Dec. 31, 1938 386 Kinds of: Mar. 29, 1939 567 End of month figures . . 45, 121, 197, 305, June 30, 1939 974 405, 499, 576, 655, 787, 897, 987, 1103 Monthly table 47, 123, 199, 307, Seasonal variations in: 407, 501, 578, 657, 789, 899, 989, 1105 Description of methods 641-642 Operating branches: Revised figures, 1919-1939 643-644 Dec. 31, 1938 479 Seasonal adjustment factors, 1919-1940 643 Mullaney, E. E., reelected Class A Director, Fed- Total: eral Reserve Bank of Kansas City 7 End of month and Wednesday figures 38, Nardin, W. T., redesignated Chairman and Fed- 114, 190, 298, 398, 492, 569, 648, 780, 890, eral Reserve Agent, St. Louis 7 980, 1096 National bank notes: Money rates: Circulation 45, 121, 197, 305, Charged customers by banks 56, 132, 208, 316, 405, 499, 576, 655, 787, 897, 987, 1103 416, 510, 587, 666, 798, 908, 998, 1114 National income. (See Income.) Charts 175, 250, 463, 847, 1051 National member banks: Commercial loan rates: Banking offices: 1928-1939: 963-969 1933-1939 109, 477, 1065 Chart 963 Branches: Cities included 965 1933-1939 109, 477, 1065 Comparable figures beginning 1928 966 Dec. 31, 1938, by States 479 Computation of averages 965 1938 changes 110 Definition of commercial loans ... 964 Jan.-Mar., 1939 changes 478 Movements in rates 964 Jan.-Sept., 1939 changes 1066 Revised figures compared with Condition on call dates: former rates 966 Dec. 31, 1938 264 Schedule 965, 968 Mar. 29, 1939 488-489 Table of figures, 1928-1939 969 June 30, 1939 727-728 Sept. 1-15, 1938: 17-19 Deposits on call dates 47, 123, 199, 307, Chart 17 407, 501, 578, 657, 789, 899, 989, 1105 Geographical differences 18 Earnings and expenses: Level of customers' rates 18 1938 and 1937 374, 378 Method of reporting 17 Jan.-June, 1939 875 Variation in rates by size of loans 18 Group banks, Dec. 31, 1938 480 Volume of loans covered by survey 18 Number of: Mar. 16-31 and June 1-15, 1939 . . 725-726 1933-1939 109, 477, 1065 Monthly table 998, 1114 1938 changes 110 Foreign countries 81, 157, 233, 343, Jan.-Mar., 1939 changes 478 445, 538, 616, 696, 828, 938, 1028, 1144 Jan.-Sept., 1939 changes 1066 National summary 98, 175, Call dates: 250, 358, 463, 556, 633, 716, 958 Sept. 28, 1938 26 Open market, in N. Y. C 56, 132, 208, 316, Dec. 31, 1938 384 416, 510, 587, 666, 798, 908, 998, 1114 Mar. 29, 1939 565 Mutual savings banks: June 30, 1939 972 Assets and liabilities: Monthly table 47, 123, 199, 307, Sept. 28, 1938 28 407, 501, 578, 657, 789, 899, 989, 1105 Dec. 31, 1938 386 Operating branches: Mar. 29, 1939 567 Dec. 31, 1938, by States 479 June 30, 1939 974 Suspensions: Banking offices: Monthly table 46, 122, 198, 306, 1933-1939 109, 477, 1065 406, 500, 577, 656, 788, 898, 988, 1104 Branches: Trust powers. (See Trust powers of na- 1933-1939 109, 477, 1065 tional banks.) Dec. 31, 1938 479 National summary of business conditions 8, 97, 174, 1938 changes 110 249, 357, 462, 555, 632, 715, 846, 957, 1050 Jan.-Mar., 1939 changes 478 Neely, Frank H.: Jan.-Sept., 1939 changes 1066 Reappointed Class C Director, Federal Re- Deposits on call dates 47, 123, 199, 307, serve Bank of Atlanta 7 407, 501, 578, 657, 789, 899, 989, 1105 Redesignated Chairman and Federal Re- Loans and investments on call dates 47, 123, 199, serve Agent, Atlanta 7 307, 407, 501, 578, 657, 789, 899, 989, 1105 Netherlands: Number of: Bank of: 1933-1939 109, 477, 1065 Annual report, 1938-1939 1068-1076 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX TO VOLUME 25 1169 Page Page Netherlands—Continued. Nonferrous metals—Continued. Bank of—Continued. Prices, Discussion of 953 v Condition 78, 154, 230, 340, Production indexes: 441, 535, 613, 693, 825, 935, 1027, 1143 Adjusted 63, 139, 215, 323, Discount rates: 423, 517, 594, 673, 805, 915, 1005, 1121 Change in 829 Unadjusted 64, 140, 216, 324, Monthly table 82, 158, 234, 344, 424, 518, 595, 674, 806, 916, 1006, 1122 445, 539, 617, 697, 829, 939, 1029, 1145 Wholesale price index 71, 147, 223, 331, Gold reserves 74, 150, 226, 336, 431, 525, 602, 681, 813, 923, 1013, 1129 434, 528, 606, 686, 818, 928, 1018, 1134 Nonmember banks: Banking and financial legislation: Branches: Nov. 25, 1938. Authorization to pro- 1933-1939 109, 477, 1065 hibit export of gold 1067 Dec. 31, 1938, by States 479 Cost of living index 86, 162, 238, 348, 1938 changes 110 449, 543, 621, 702 833, 943, 1033, 1149 Jan.-Mar., 1939 changes 478 Foreign exchange rates 84, 160, 236, 346, Jan.-Sept., 1939 changes 1066 447, 541, 619, 700, 831, 941, 1031, 1147 Deposits: Gold movements to and from U.S... 46, 122, 198, Call dates 47, 123, 199, 307, 306, 406, 500, 577, 656, 788, 898, 988, 1104 407, 501, 578, 657, 789, 899, 989, 1105 Money rates 81, 157, 233, 343, Deposits of, held by Federal Reserve banks: 445, 538, 616, 696, 828, 938, 1028, 1144 End of month and Wednesday figures . 38, Retail food price index 86, 162, 238, 348, 114, 190, 298, 392, 492, 569, 648, 780, 449, 543, 621, 702, 833, 943, 1033, 1149 890, 980, 1096 Security prices 86, 162, 238, 348, Group banks, Dec. 31, 1938 480 449, 543, 621, 702, 833, 943, 1033, 1149 Insured: Wholesale price indexes . . 85, 161, 237, 347, Assets and liabilities: 448, 542, 620, 701, 832, 942, 1032, 1148 Dec. 31, 1938 381 Neutrality Act of 1939: June 30, 1939 877 Credits to belligerants, regulations 961 Banking offices: Financial transactions under 1054 1933-1939 109, 477, 1065 New Zealand: Branches: Foreign exchange rates 84, 160, 236, 346, 1933-1939 109, 477, 1065 447, 541, 619, 700, 831, 941, 1031, 1147 1938 changes 110 Reserve Bank of: Jan.-Mar., 1939 changes 478 Condition 78, 154, 230, 340, Jan.-Sept., 1939 changes 1066 441, 535, 613, 693, 825, 935, 1027, 1143 Number of: Discount rates: 1933-1939 109, 477, 1065 Change in 82 Dec. 31, 1938 381 Monthly table 82, 158, 234, 344, 1938 changes 110 445, 539, 617, 697, 829, 939, 1029, 1145 Jan.-Mar., 1939 changes 478 Gold reserves 74, 150, 226, 336, June 30, 1939 877 434, 528, 606, 686, 818, 928, 1018, 1134 Jan.-Sept., 1939 changes 1066 Newton. Oscar, Death of 172 Suspensions 46, 122, 198, 306, Nondurable goods: 406, 500, 577, 656, 788, 898, 988, 1104 Factory employment index: Adjusted 65, 141, 217, 325, Loans and investments, call dates 47, 123, 199, 425, 519, 596, 675, 807, 917, 1007, 1123 307, 407, 501, 578, 657, 789, 899, 989, 1105 Unadjusted 67, 143, 219, 327, Number of, call dates 47, 123, 199, 307, 427, 521, 598, 677, 809, 919, 1009, 1125 407, 501, 578, 657, 789, 899, 989, 1105 Operating branches: Factory payrolls index 67, 143, 219, 327, 427, 521, 598, 677, 809 919 1009 1125 Dec. 31, 1938, by States 479 Prices, Discussion of 951 Uninsured: Production index: Banking offices: Adjusted: 1933-1939 109, 477,1065 1919-1938 21 Branches: Monthly table 139, 215, 323, 423, 1933-1939 109, 477,1065 517, 594, 673, 805, 915, 1005, 1121 1938 changes 110 Discussion of 20 Jan.-Mar., 1939 changes 478 Unadjusted: Jan.-Sept., 1939 changes 1066 1923-1938 21 Number of: Monthly table 140, 216, 324, 424, 1933-1939 109, 477,1065 518, 674, 806, 916, 1006, 1122 1938 changes .110 Nonferrous metals: Jan.-Mar., 1939 changes 478 Factory employment index: Jan.-Sept., 1939 changes 1066 Adjusted 65, 141, 217, 325, Suspensions 46, 122, 198,306, 425, 519, 596, 675, 807, 917, 1007, 1123 406, 500, 577, 656, 788, 898, 988,1104 Unadjusted 67, 143, 219, 327, Norway: 427, 521, 598, 677, 809, 919, 1009, 1125 Bank of: Factory payrolls index 67, 143, 219, 327, Condition 78, 154, 230,340, 427, 521, 598, 677, 809, 919, 1009, 1125 441, 535, 613, 693, 825, 935, 10271,143 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1170 INDEX TO VOLUME 25 Page Page Norway—Continued. Paper currency—Continued. Bank of—Continued. Shipments and receipts 45, 121, 197, 305, Discount rates: 405, 499, 576, 655, 787, 897, 987, 1103 Change in 939 Parker, Robert S., appointed President of Fed- Monthly table 82, 158, 234, 344, eral Reserve Bank of Atlanta 173 445, 539, 617, 697, 829, 939, 1029, 1145 Partnership loans under Section 11 (m) of Fed- Gold reserves 74, 150, 226, 336, eral Reserve Act. (Ruling.) 362 434, 528, 606, 686, 818, 928, 1018, 1134 Payrolls, Factory: Foreign exchange rates . 84, 160, 236, 346, Charts 462 447, 541, 619, 700, 831, 941, 1031, 1147 Indexes: Noyes, N. H., reelected Class B. Director, Fed- By industries, monthly figures 67, eral Reserve Bank of Chicago 7 143, 219, 327, 427, 521, 598, 677, 809, 919, Number of banks. (See Banks: Number of) 1009, 1125 Oats crop reports 72, 682, 814, 924, 1014, 1130 Total, yearly and monthly figures .62, Obligations fully guaranteed by the U. S. (See 138, '214, 322, 422, 516, 593, 672, 804, 914, Treasury finance: Guaranteed obligations.) 1004, 1120 O'Connell,'j. E., reelected Class B Director, Fed- National summary 9, 98, 174, 249, 463, 715 eral Reserve Bank of Minneapolis 7 Personal loans: Odlin, Reno, elected Class A Director, Federal Amounts received in connection with per- Reserve Bank of San Francisco 7 sonal loans as deposits. (Ruling.) 637 Objectives, Monetary measures and . 363-364, 461 Peru: Officers and employees: Central Reserve Bank of: Member banks: Condition 78, 154, 230, 340, 1938 378-379 441, 535, 613, 693, 825, 935, 1027, 1143 Jan.-June, 1939 875 Discount rate 82, 158, 234, 344, Open Market Committee. (See Federal Open 445, 5391 617, 697, 829, 939, 1029, 1145 Market Committee.) Gold reserves 74, 150, 226, 336, Open market operations: 434, 528, 606, 686, 818, 928, 1018, 1134 Discussion of 630, 710, 839, 1049 Gold movements to and from U. S. 46, 122, Open market paper: 198, 306, 406, 500, 577, 656, 788, 898, 988, 1104 Member bank holdings: Petroleum and products: , All banks on call dates: Factory employment index: Mar. 29, 1939 489 Adjusted 65, 141, 217, 325, June 30, 1939 728 425, 519, 596, 675, 807, 917, 1007, 1123 Unadjusted 67, 143, 219, 327, Monthly table 308, 408, 502, 579, 658, 427, 521, 598, 677, 809, 919, 1009, 1125 790, 900, 990, 1106 Factory payrolls index 67, 143, 219, 327, Reporting banks: 427, 521, 598, 677, 809, 919, 1009, 1125 All banks, N. Y. C. and outside Production index: N. Y. C, monthly and Wednes- Adjusted 63, 139, 215, 323, day figures . 50, 126, 202, 310, 410. 423, 517, 594, 673, 805, 915, 1005, 1121 504, 581, 660, 792, 902. 992, 1108 Unadjusted 64, 140, 216, 324, By districts and for Chicago, 424, 518, 595, 674, 806, 916, 1006, 1122 Wednesday figures 52, 128, 204, 312 Wholesale price index 71, 147, 223, 331, 412, 506, 583, 662, 794, 904, 994, 1110 431, 525, 602, 681, 813, 923, 1013, 1129 Operating ratios of member banks, 1938: Philippine Islands: By size groups and geographic divisions Gold movements to and from U. S. . 46, 122, 481-486 198, 306, 406, 500, 577, 656, 788, 898, 988, 1104 Ore: Phillips, L. E., reelected Class B Director, Fed- Freight-car loadings indexes 70, 146, 222, 330, eral Reserve Bank of Kansas City 7 430, 524, 601, 680, 812, 922, 1012, 1128 Poland: Paper and printing: Bank of: Factory employment index: Condition 78, 154, 230, 340, Adjusted 65, 141, 217, 325, 441, 535, 613, 693, 825, 935, 1027, 1143 425, 519, 596, 675, 807, 917, 1007, 1123 Discount rate 82, 158, 234, 344, Unadjusted 67, 143, 219, 327 445, 539, 617, 697, 829, 939, 1029, 1145 427, 521, 598, 677, 809. 919, 1009, 1125 Gold reserves 74, 150, 226, 336, Factory payrolls index . 67, 143, 219, 327, 434, 528, 606, 686, 818, 928, 1018, 1134 427, 521, 598, 677, 809, 919, 1009, 1125 Foreign exchange rates . 84, 160, 236, 346, Prices, Discussion of 951 447, 541, 619, 700, 831, 941, 1031, 1147 Production index: Porter, J. F., appointed Deputy Chairman, Fed- Adjusted 63, 139, 215, 323, eral Reserve Bank of Atlanta 7 423, 517, 594, 673, 805, 915, 1005, 1121 Portugal: Unadjusted 64, 140, 216, 324, Bank of: 424, 518, 595, 674, 806, 916, 1006, 1122 Condition 78, 154, 230, 340, Wholesale price index 71, 147, 223, 331, 441, 535, 613, 693, 825, 935, 1027, 1143 431, 525, 602, 681, 813, 923, 1013, 1129 Discount rate 82, 158, 234, 344, Paper currency: 445, 539, 617, 697, 829, 939, 1029, 1145 Circulation 45, 121, 197, 305, Gold reserves 74, 150, 226, 336, 405, 499, 576, 655, 787, 897, 987, 1103 434, 528, 606, 686, 818, 928, 1018, 1134 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX TO VOLUME 25 1171 Page Page Portugal—Continued. Private banks—Continued. Foreign exchange rates 84, 160, 236, 346, Branches—Continued. 447, 541, 619, 700, 831, 941, 1031, 1147 Jan.-Mar., 1939 changes 478 Postal savings deposits: Jan.-Sept., 1939 changes 1066 Interest rate on, paid by member banks. . 55, 131, Number of: 207, 315, 415, 509, 586, 665, 797, 907, 997, 1113 1933-1939 109, 477, 1065 Member bank holdings: Sept. 28, 1938 28 All banks on call dates: Dec. 31, 1938 386 Dec. 31, 1938 264 1938 changes . . 110 Mar. 29, 1939 488 Mar. 29, 1939 567 June 30, 1939 727 Jan.-Mar., 1939 changes 478 Monthly table 49, 125, 201, 309, June 30, 1939 974 409, 503, 580, 659, 791, 901, 991, 1107 Jan.-Sept., 1939 changes 1066 Reporting banks: Operating branches, Dec. 31, 1938 479 All banks, N. Y. C. and outside "Problems of Banking and Bank Supervision". . 97 N. Y. C, monthly and Wednes- Production, employment and trade: day figures 311, Monthly table 62, 138, 214, 322, 411, 505, 582, 661, 793, 903, 993, 1109 422, 516, 593, 672, 804, 914, 1004, 1120 Production, Industrial: By districts and for Chicago, Charts 8, 20, 97, 169, 174, 249, Wednesday figures 313, 456, 462, 555, 632, 715, 844, 846, 1046 413, 507, 584, 663, 795, 905, 995, 1111 Discussion of 168, 456-457, 844-845 Postal savings system 61, 137, 213, 321, Indexes: 421, 515, 592, 671, 803, 913, 1003, 1119 Adjusted: Potato crop reports 72, 682, 814, 924, 1014 By industries, monthly figures 63, President of United States: 139, 215, 323, 423, 517, 594, 673, 805, Letter on 25th anniversary of signing of 915, 1005, 1121 Federal Reserve Act 13 Total, monthly figures 62 Proclamations on newly-mined silver. 105, 723 138, 214, 322, 422, 516, 593, 672, 804, Regulations concerning credits to belliger- 914, 1004, 1120 ents 961 National summary 8, 97, 174, 249, Veto message on interlocking bank directo- 357, 462, 555, 632, 715, 846, 957, 1050 rates 719 Unadjusted: Prices: By industries, monthly figures 64, Agricultural : 140, 216, 324, 424, 518, 595, 674, 806, Discussion of 459, 843 916, 1006, 1122 Retail food: Total, yearly and monthly figures. . 62 Discussion of 844, 950 138, 214, 322, 422, 516, 593, 672, 804, Index, principal countries 86, 162, 238, 348, 914, 1004, 1120 449, 543, 621, 702, 833, 943, 1033, 1149 Production, Manufacturing. (See Manufac- Stabilization of: tures: Production.) Board of Governors statement on 255-259, Production credit associations: 461 Loans outstanding 61, 137, 213, 321, Wholesale commodity: 421, 515, 592, 671, 803, 913, 1003, 1119 Charts 97, 358, 460, Profit and loss: 556, 716, 843, 847, 950, 951, 958, 1051 Member banks: Discussion of 170, 459-461, 842-844, 949-955 1938 347-379 Indexes by groups: Jan.-June, 1939 875 Principal countries . 85, 161, 237, 347, Public debt, U. S. Government. (See Treasury 448, 542, 620, 701, 832, 942, 1032, 1148 finance: Public debt.) United States 71, 147, 223, 331, 431, Public Works Administration: 525, 602, 681, 813, 923, 1013, 1129 Assets and liabilities: National summary 9, 175, 250, Combined with Reconstruction Finance 358, 463, 556, 633, 716, 847, 957, 1051 Corporation figures 60, 136, 212, Principal assets and liabilities of Federal Re- 320, 420, 514, 591, 670, 802, 912,1002,1118 serve banks: Summary of operations, 1938 366-367 Monthly table 39, 115, 191, 299, Railroads: 399, 493, 570, 649, 781, 891, 981, 1097 Earnings and expenses 170 Real estate: Private banks: Loans on, by member banks: Assets and liabilities: All banks on call dates: Sept. 28, 1938 28 Dec. 31, 1938 264 Dec. 31, 1938 386 Mar. 29, 1939 489 Mar. 29, 1939 567 June 30, 1939 728 June 30, 1939 974 Monthly table 48, 124, 200, 308, Banking offices: 408, 502, 579, 658, 790, 900, 990, 1106 1933-1939 109, 477, 1065 Reporting banks: Branches: All banks, N. Y. C. and outside 1933-1939 109, 477, 1065 N. Y. C, monthly and Wednesday Dec. 31, 1938 479 figures 50, 126, 202, 310, 1938 changes 110 410, 504, 581, 660, 792, 902, 992, 1108 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1172 INDEX TO VOLUME 25 Page Page Real estate—Continued. Reserve requirements: Loans on, by member banks—Continued. Member banks: Reporting banks—Continued. Monthly table 55, 131, 207, 315, By districts and for Chicago, Wed- 415, 509, 586, 665, 797, 907, 997, 1113 nesday figures 52, 128, 204, 312, Personal loans: 412, 506, 583, 662, 794, 904, 994, 1110 Funds for retiring personal loans as de- Member bank holdings: posits for reserve purposes. (Ruling.) 637 Dec. 31, 1938 264 Reserves: Mar. 29, 1939 489 Federal Reserve banks: June 30, 1939 728 All banks combined, end of month and Term loans secured by real estate 561 Wednesday figures 39, 115, 191, 299, Receipts, U. S. Treasury. (See Treasury finance: 399, 493, 570, 649, 781, 891, 981, 1097 Receipts.) Each bank, Wednesday figures 40, 116,192, Reconstruction Finance Corporation: 300, 400, 494, 571, 650, 782, 892, 982, 1098 Act continuing functions 253-254 Member banks: Assets and liabilities: Account in Federal Reserve banks: Combined with Public Works Adminis- All banks combined, end of month tration figures 60, 136, 212, 320, and Wednesday figures 39, 420, 514, 591, 670, 802, 912, 1002, 1118 Guaranteed obligations outstanding . 58, 134, 115, 191, 299, 399, 493, 570, 649, 781, 210, 318, 418, 512, 589, 668, 800, 910, 1000, 1116 891, 981, 1097 Loans and investments 60, 136, 212, 320, Each F. R. bank, Wednesday figures. 40, 420, 514, 591, 670, 802, 912, 1002, 1118 116, 192, 300, 400, 494, 571, 650, 782, Mortgage Company operations, 1938 . . 365-368 892, 982, 1098 Summary of operations, 1938 365-371 Charts 10, 99, 176, 251, 359, 464, Redemption fund; Federal Reserve notes. (See 557, 634, 711, 716, 717, 848, 959, 1052 Federal Reserve notes: Redemption fund.) Discussion of 91, 246, 456, 630, 709-711 Regulations of Board of Governors: Excess: Regulation D. Reserve requirements: Charts 98, 358 Funds for retiring personal loans as de- Classes of banks 44, 120, 196, 304, posits. (Ruling.) 637 404, 498, 575, 654, 786, 896, 986, 1102 Regulation F. Trust powers of national Discussion of 91, 456, 630, 709 banks: End of month and Wednesday fig- Amendments 1054 ures 38, 114, 190, 298, Ruling : 12 398, 492, 569, 648, 780, 890, 980, 1096 Regulation G. Rediscount of notes secured Total: by adjusted service certificates: All banks: Regulation repealed 361 Call dates: Regulation H. Membership of State banks: Dec. 31, 1938 264 Revised 1054-1064 Mar. 29, 1939 488 Regulation J. Check clearing and collection: June 30, 1939 727 Revised 719-721 Monthly table 49, 125, Regulation L. Interlocking directorates: 201, 309, 409, 503, 580, 659, Amendments 719 791, 901, 991, 1107 Regulation O. Executive officers of member End of month and Wednesday banks. figures . . 38, 114, 190, 298, 398, Amendment. Change in definition of 492, 569, 648, 780, 890, 980, 1096 "Executive officer" 636 Classes of banks ... 44, 120, 196, 304, Regulation Q. Interest on deposits: 404, 498, 575, 654, 786, 896, 986, 1102 Rulings 559, 850, 851 Ratio to liabilities . . 39, 115, 191, 299, Regulation T. Margin requirements for 399, 493, 570, 649, 781, 891, 981, 1097 brokers: Reporting banks: Amendments 466, 722 All banks, N. Y. C. and outside Rulings 253,721,961 N. Y. C, monthly and Reserve bank credit. (See Credit, Bank.) Wednesday figures . 50, 126, Reserve city member banks: 202, 311, 411, 505, 582, 661, 793, Condition on call dates: 903, 993, 1109 Dec. 31, 1938 264 By districts and for Chicago, Mar. 29, 1939 488-489 June 30, 1939 727-728 Wednesday figures, . 52, 128, Monthly table 48, 124, 200, 308, 204, 313, 413, 507, 584, 663, 795, 408, 502, 579, 658, 790, 900, 990, 1106 905, 995, 1111 Deposits: Retail trade: Monthly figures 44, 120, 196, 304, Discussion of 170 404, 498, 575, 654, 786, 896, 986, 1102 (See also Department store sales and stocks.) Reserves: Retail food prices. (See Prices: Retail food.) Monthly and weekly figures . .44, 120, 196, Review of the month 1,91, 167, 243, 304, 404, 498, 575, 654, 786, 896, 986, 1102 353, 455, 549, 627, 709, 839, 949, 1039 Reserve position of member banks: Rhodesia: Monthly table 44, 120, 196, 304, Gold production 75, 151, 227, 337, 404, 498, 575, 654, 786, 896, 986, 1102 435, 529, 607, 687, 819, 929, 1019, 1135 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX TO VOLUME 25 1173 Page Page Rubber and rubber products: Securities—Continued. Factory employment index: Market, Discussion of 171, 243, 355, 628-630 Adjusted 65, 141, 217, 325, New issues. (See Capital issues.) 425, 519, 596, 675, 807, 917, 1007, 1123 Prices: Unadjusted 67, 143, 219, 327, National summary 358 427, 521, 598, 677, 809, 919, 1009, 1125 Principal countries 86, 162, 238, 348, Factory payrolls index 67, 143, 219, 327, 449, 543, 621, 702, 833, 943, 1033, 1149 427, 521, 598, 677, 809, 919, 1009, 1125 United States 57, 133, 209, 317, Prices, Discussion of 951 417, 511, 588, 667, 799, 909, 999, 1115 Production indexes: Purchased by foreigners: Adjusted 63, 139, 215, 323, July-Sept., 1938 34 423, 517, 594, 673, 805, 915, 1005, 1121 Oct.-Nov., 1938 186 Unadjusted 64, 140, 216, 324, 1938 292-293 424, 518, 595, 674, 806, 916, 1006, 1122 Description of tables 284-287 Wholesale price indexes 71, 147, 223, 331, Discussion of 96 431, 525, 602, 681, 813, 923, 1013, 1129 Monthly table 438, 532, 610, Rulings of Board of Governors: 690, 822, 932, 1022, 1138 (For rulings of Board see under subject United States Government. (See United matter, i.e., Margin requirements.) States Government securities.) Rumania: Shipments and receipts of United States paper Foreign exchange rates 84, 160, 236, 346, currency. (See Paper currency: Shipments 447, 541, 619, 700, 831, 941, 1031, 1147 and receipts.) National Bank of: Short-term foreign assets of banks in United Condition 78, 154, 230, 340, States: 441, 535, 613, 693, 825, 935, 1027, 1143 July-Sept., 1938 35 Discount rate 82, 158, 234, 344, Oct.-Nov., 1938 187 445, 539, 617, 697, 829, 939, 1029, 1145 1938 296 Gold reserves 74, 150, 226, 336, Description of tables 284-287 434, 528, 606, 686, 818, 928, 1018, 1134 Monthly table 439, 533, 611, 691, Ruml, Beardsley: 823, 933, 1023, 1139 Reappointed Class C Director, Federal Re- Short-term foreign liabilities of banks in United serve Bank of New York 7 States: Reappointed Deputy Chairman, Federal Re- July-Sept., 1938 35 serve Bank of New York 7 Oct.-Nov., 1938 187 Rural Electrification Administration: 1938 295 Loans outstanding, Dec. 31, 1938 . .365-366, 371 Description of tables 284-287 Salaries: Monthly table 439, 533, 611, 691, Federal Reserve banks: . 823,933,1023,1139 Silver Jan.-June, 1939 640 Circulation 45, 121, 197, 305, Member banks: 405, 499, 576, 655, 787, 897, 987, 1103 1938 374-379 Newly mined domestic silver: Jan.-June, 1939 875 Act providing for coinage of 638 Salvador. (See El Salvador.) Presidential proclamations 105, 723 Savings accounts: Regulations governing. . . .105-108, 638, 724 Payment of interest on savings account after Production index: death of depositor. (Ruling.) 851 Adjusted 63, 139, 215, 323, Transfers to FHA mortgages. (Ruling.) . . 850 423, 517, 594, 673, 805, 915, 1005, 1121 Savings deposits: Unadjusted 64, 140, 216, 324, Interest rates on 55, 131, 207, 315, 424, 518, 595, 674, 806, 916, 1006, 1122 415, 509, 586, 665, 797, 907, 997, 1113 Silver certificates: Payment of interest on. (See Interest on Circulation 45, 121, 197, 305, deposits.) 405, 499, 576, 655, 787, 897, 987, 1103 Seale, Ford, elected Class A Director, Federal Smith, Walter W., reelected President of Federal Reserve Bank of Dallas 7 Advisory Council 172 Seasonal variations in money in circulation. . 641-644 Social security: Securities: Act made applicable to member banks 723 Loans on, by member banks: Receipts, withdrawals and benefit payments 59, All banks on call dates: 135, 211, 319, 419, 513, 590, 669, 801, 911, Mar. 29, 1939 489 1001, 1117 June 30, 1939 728 South Africa: Monthly table 48, 124, 200, 308, Foreign exchange rates . 84, 160, 236, 346, 408, 502, 579, 658, 790, 900, 990, 1106 447, 541, 619, 700, 831, 941, 1031, 1147 Reporting banks: Gold production 75, 151, 227, 337, All banks, N. Y. C. and outside N. 435, 529, 607, 687, 819, 929, 1019, 1135 Y. C, monthly and Wednesday Reserve Bank: figures 50, 126, 202, 310, 410, Condition 78, 154, 230, 340, 504, 581, 660, 792, 902, 992, 1108 441, 535, 613, 693, 825, 935, 1027, 1143 By districts and for Chicago, Discount rates 82, 158, 234, 344, Wednesday figures 52, 128, 445, 539, 617, 697, 829, 939, 1029, 1145 204, 312, 412, 506, 583, 662, Gold reserves 74, 150, 226, 336, 794, 904, 994, 1110 434, 528, 606, 686, 818, 928, 1018, 1134 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1174 INDEX TO VOLUME 25 Page Page Spain: States and political subdivisions—Continued. Bank of: Public fund deposits—Continued. Discount rates 82, 158, 234, 344, Member bank holdings—Continued. 445, 539, 617, 697, 829, 939, 1029, 1145 All banks on call dates—Continued. Gold reserves 74, 150, 226, 336, Mar. 29, 1939 488 434, 528, 606, 686, 818, 928, 1018, 1134 June 30, 1939 727 Foreign exchange rates 84, 160, 236, 346, Monthly table 49, 125, 447, 541, 619, 700, 831, 941, 1031, 1147 201, 309, 409, 503, 580, 659, 791, Gold movements to and from U. S. . . . 46, 122, 901, 991, 1107 198, 306, 406, 500, 577, 656, 788, 898, 988, 1104 Reporting banks: Stabilization fund: All banks, N. Y. C, and out- Act extending powers relating to 638 side N. Y. C, monthly and Stabilization of prices: Wednesday figures 311, 411, Board of Governors statement on 255-259, 461 505, 582, 661, 793, 903, 993, 1109 Stanley, J. R., elected Class B Director, Federal By districts and for Chicago, Reserve Bank of St. Louis 7 Wednesday figures 313, 413, State banks: 507, 584, 663, 795, 905, 995, 1111 Assets and liabilities: Steagall, Henry B.: Sept. 28, 1938 27 Address at 25th anniversary of signing of Dec. 31, 1938 385 Federal Reserve Act 14 Mar. 29, 1939 566 Steel. (See Iron and steel.) June 30, 1939 . 973 Stock exchange: Federal Reserve membership requirement Customers' debit balances, etc., of firms carfor State insured banks repealed 559 rying margin accounts. . 54, 130, 206, 314, Number of: 414, 508, 585, 664, 796, 906, 996, 1112 Sept. 28, 1938 27 Discount rates on loans 56, 132, 208, 316, Dec. 31, 1938 385 416, 510, 587, 666, 798, 908, 998, 1114 Mar. 29, 1939 566 Stocks registered, Jan. 31, 1939 173 June 30, 1939 973 Volume of trading on N.Y.S.E 57, 133, 209, State laws: 317, 417, 511, 588, 667, 799, 909, 999, 1115 Branch banking 851-870 Stocks: State member banks: Collateral loans on. (Ruling.) 362 Banking offices: Member bank holdings: 1933-1939 109, 477, 1065 Dec. 31, 1938 264 Branches: 1933-1939 109, 477, 1065 Mar. 29, 1939 489 Dec. 31, 1938, by States 479 June 30, 1939 728 1938 changes 110 New issues. (See Capital issues.) Jan.-Mar., 1939 changes 478 Prices: Jan.-Sept., 1939 changes 1066 Charts 629, 841 Condition on call dates: Discussion of 629, 840 Dec. 31, 1938 264 Principal countries 86, 162, 238, 348, Mar. 29, 1938 488-489 449, 543, 621, 702, 833, 943, 1033, 1149 June 30, 1939 727-728 United States 57, 133, 209, 317, Deposits, call dates 47, 123, 199, 307, 417, 511, 588, 667, 799, 909, 999, 1115 407, 501, 578, 657, 789, 899, 989, 1105 Stone, James C, appointed Class C Director, Earnings and expenses: Federal Reserve Bank of Cleveland 7 1938 374, 378-379 Stone and clay products: Jan.-June, 1939 875 Factory employment indexes: Group banks, Dec. 31, 1938 480 Adjusted 65, 141, 217, 325, Number of: 425, 519, 596, 675, 807, 917, 1007, 1123 1933-1939 109, 477, 1065 Unadjusted 67, 143, 219, 327, 1938 changes , 110 427, 521, 598, 677, 809, 919, 1009, 1125 Jan.-Mar., 1939 changes 478 Factory payrolls indexes 67, 143, 219, 327, Jan.-Sept., 1939 changes 1066 427, 521, 598, 677, 809, 919, 1009, 1125 Monthlv table 47, 123, 199, 307, Straits Settlements: 407, 501, 578, 657, 789, 899, 989, 1105 Foreign exchange rates 84, 160, 236, 346, Operating branches: 447, 541, 619, 700, 831, 941, 1031, 1147 Dec. 31, 1938, by States 479 Stroud, E. B., appointed First Vice President, Regulation H, revised 1054-1064 Federal Reserve Bank of Dallas 554 Suspensions 46, 122, 198, 306, 406, 500, 577, 656, 788, 898, 988, 1104 Summary of financial and business statistics . 11, States and political subdivisions: 100, 177, 252, 360, 465, 558, 635, 718, Obligations of, owned by member banks: 849, 960, 1053 Dec. 31, 1938 264 Supervision of banks. (See Bank supervision.) Mar. 29, 1939 489 Surplus : June 30, 1939 728 Member banks: Public fund deposits: Dec. 31, 1938 264 Member bank holdings: Mar. 29, 1939 488 All banks on call dates: June 30, 1939 727 Dec. 31, 1938 264 Suspensions, Bank. (See Banks: Suspensions.)f Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX TO VOLUME 25 1175 Page Page Sweden: Thomas, J. J.: Bank of: Appointed Deputy Chairman, Federal Re- Condition 78, 154, 230, 340, serve Bank of Kansas City 7 441, 535, 613, 693, 825, 935, 1027, 1143 Reappointed Class C Director, Federal Re- Discount rates 82, 158, 234, 344, serve Bank of Kansas City 7 445, 539, 617, 697, 829, 939, 1029, 1145 Thompson, Otis A., reelected Class A Director, Gold reserves 74, 150, 226, 336, Federal Reserve Bank of New York 6 434, 528, 606, 686, 818, 928, 1018, 1134 Tobacco: Foreign exchange rates 84, 160, 236, 346, Crop reports 72, 682, 814, 924, 1014, 1130 447, 541, 619, 700, 831, 941, 1031, 1147 Manufactures: Gold movements to and from U. S.. .46, 122, 198, Factory employment index: 306, 406, 500, 577, 656, 788, 898, 988, 1104 Adjusted 65, 141, 217, 325, 425, Money rates 81, 157, 233, 343, 519, 596, 675, 807, 917, 1007, 1123 445, 538, 616, 696, 828, 938, 1028, 1144 Unadjusted 67, 143, 219, 327, 427, Switzerland: 521, 598, 677, 809, 919, 1009, 1125 Cost of living index 86, 162, 238, 348, Factory payrolls index .67, 143, 219, 327, 449, 543, 621, 702, 833, 943, 1033, 1149 427, 521, 598, 677, 809, 919, 1009, 1125 Foreign exchange rates 84, 160, 236, 346, Production index: 447, 541, 619, 700, 831, 941, 1031, 1147 Adjusted 63, 139, 215, 323, 423, Gold imports and exports 76, 152, 228, 338, 517, 594, 673, 805, 915, 1005, 1121 436, 530, 608, 688, 820, 930, 1020, 1136 Unadjusted 64, 140, 216, 324, 424, Gold movements to and from U. S. 46, 122, 198, 518, 595, 674, 806, 916, 1006, 1122 306, 406, 500, 577, 656, 788, 898, 988, 1104 Transportation equipment: Money rates 81, 157, 233, 343, Factory employment index: 445, 538, 616, 696, 838, 938, 1028, 1144 Adjusted 65, 141, 217, 325, Retail food price index 86, 162, 238, 348, 425, 519, 596, 675, 807, 917, 1007, 1123 449, 543, 621, 702, 833, 943, 1033, 1149 Unadjusted 67, 143, 219, 327, Swiss National Bank: 427, 521, 598, 677, 809, 919, 1009, 1125 Annual report, 1938 387-391 Factory payrolls index 67, 143, 219, 327, Condition 78, 154, 230, 340, 427, 521, 598, 677, 809, 919, 1009, 1125 441, 535, 613, 693, 825, 935, 1027, 1143 Production indexes: Discount rates 82, 158, 234, 344, Adjusted 63, 139, 215, 323, 445, 539, 617, 697, 829, 939, 1029, 1145 423, 517, 594, 673, 805, 915, 1005, 1121 Gold reserves 74, 150, 226, 336, Unadjusted 64, 140, 216, 324, 434, 528, 606, 686, 818, 928, 1018, 1134 424, 518, 595, 674, 806, 916, 1006, 1122 Wholesale price indexes 85, 161, 237, 347, Treasury cash and deposits with Federal Re- 448, 542, 620, 701, 832, 942, 1032, 1148 serve banks. (See United States Govern- Tax receipts, U. S. Treasury. (See Treasury ment deposits: Federal Reserve banks.) finance: Receipts.) Treasury currency outstanding: Taxation of banks: End of month and Wednesday figures .38, 114, Social Security Act made applicable to mem- 190, 298, 398, 492, 569, ber banks 723 648, 780, 890, 980, 1096 Taylor, Jay, appointed Deputy Chairman, Fed- End of month figures 45, 121, 197, 305, eral Reserve Bank of Dallas 7 405, 499, 576, 655, 787, 897, 987, 1103 Teagle, W. C, reelected Class B Director, Fed- Treasury finance: eral Reserve Bank of New York 7 Deficit 59, 135, 211, 319, Tennessee Valley Authority: 419, 513, 590, 669, 801, 911, 1001, 1117 Assets and liabilities 60, 136, 212, 320, Discussion of 1-6, 243, 627-628, 710, 712 420, 514, 591, 670, 802, 912, 1002, 1118 Expenditures: Government's proprietary share in 366 Discussion of 4-6, 627-628 Terborgh, George 731 Monthly table 59, 135, 211, 319, 419, Term loans: 513, 590, 669, 801, 911, 1001, 1117 Survey of term loans to commercial and in- General fund balance . . .59, 135, 211, 319, 419, dustrial concerns 560-562 513, 590, 669, 801, 911, 1001, 1117 Textiles: Guaranteed obligations 58, 134, 210, 318, Factory employment index: 418, 512, 589, 668, 800, 910, 1000, 1116 Adjusted 65, 141, 217, 325, Public debt: 425, 519, 596, 675, 807, 917, 1007, 1123 Changes in 2, 627 Unadjusted 67, 143, 219, 327, Gross debt. .58, 134, 210, 318, 418, 512, 589, 427, 521, 598, 677, 809, 919, 1009, 1125 668, 800, 910, 1000, 1116 Factory payrolls index 67, 143, 219, 327, Interest bearing: 427, 521, 598, 677, 809, 919, 1009, 1125 Chart 2 Prices, Discussion of 952 Monthly table. . .58, 134, 210, 318, 418, Production index: 512, 589, 668, 800, 910, 1000, 1116 Adjusted 63, 139, 215, 323, Interest on: 423, 517, 594, 673, 805, 915, 1005, 1121 Discussion of 2,3 Unadjusted 64, 140 ,216, 324, Monthly table. . .59, 135, 211, 319, 419, 424, 518, 595, 674, 806, 916, 1006, 1122 513, 590, 669, 801, 911, 1001, 1117 Wholesale price index 71, 147, 223, 331, Maturities: 431, 525, 602, 681, 813, 923, 1013, 1129 Discussion of 2, 628 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1176 INDEX TO VOLUME 25 Page Page Treasury finance—Continued. United Kingdom—Continued. Public debt—Continued. Gold movements to and from U. S 46, 122, Maturities—Continued. 198, 306, 406, 500, 577, Monthly table. . .58, 134, 210, 318, 418, 656, 788, 898, 988, 1104 512, 589, 668, 800, 910, 1000, 1116 Money rates 81, 157, 233, 343, Noninterest bearing 58, 134, 210, 318, 445, 538, 616, 696, 828, 938, 1028, 1144 418, 512, 589, 668, 800, 910, 1000, 1116 Retail food price index 86, 162, 238, 348, Receipts: 449, 543, 621, 702, 833, 943, 1033, 1149 Discussion of 4-5, 627 Security prices 86, 162, 238, 348, Monthly table 59, 135, 211, 319, 419, 449, 543, 621, 702, 833, 943, 1033, 1149 513, 590, 669, 801, 911, 1001, 1117 Tax measures, Discussion of 1045 Treasury notes of 1890: Treasury expenditures, Discussion of 1045 Circulation 45, 121, 197, 305, 405, 499, 576, Wholesale price indexes ... 85, 161, 237, 347, 655, 787, 897, 987, 1103 448, 542, 620, 701, 832, 942, 1032, 1148 Trust Indenture Act of 1939, Note on 851 United States Government credit agencies. (See Trust powers of national banks: Governmental corporations and credit agen- Investment of funds: cies.) Amendments to Regulation F 1054 United States Government debt. (See Treas- Deposit of funds in own savings de- ury finance: Public debt.) partment. (Ruling.) 12 United States Government deposits: Turkey: Federal Reserve banks: Central Bank of: All banks combined, end of month and Condition . .78, 154, 230, 340, 441, 535, 613, Wednesday figures ... 38, 114, 190, 298, 693, 825, 935, 1027, 1143 398, 492, 569, 648, 780, 890, 980, 1096 Discount rate . .82, 158, 234, 344, 445, 539, Each bank, Wednesday figures .40, 116, 617, 697, 829, 939, 1029, 1145 192, 300, 400, 494, 571, Gold reserves . .74, 150, 226, 336, 434, 528, 650, 782, 892, 982, 1098 606, 686, 818, 928, 1018, 1134 Member bank holdings: Foreign exchange rates 84, 160, 236, 346, 447, All banks on call dates: 541, 619, 700, 831, 941, 1031, 1147 Dec. 31, 1938 264 Union of Soviet Socialist Republics: Mar. 29, 1939 488 Bank of: June 30, 1939 727 Discount rate 82, 158, 234, 344, Monthly table . 49, 125, 201, 309, 409, 445, 539, 617, 697, 829, 939, 1029, 1145 503, 580, 659, 791, 901, 991, 1107 Gold production 75, 151, 227, 337, Reporting banks: 435, 529, 607, 687, 819, 929, 1019, 1135 All banks, N. Y. C. and outside United Kingdom: N. Y. C, monthly and Wednes- Bank of England: day figures. 51, 127, 203. 311, 411, Condition 77, 153, 229, 339, 505, 582, 661, 793, 903, 993, 1109 440, 534, 612, 692, 824, 934, 1024, 1140 By districts and for Chicago, Wed- Discount rate: nesday figures 53, 129, 205, 313, 413, Changes in 829, 939, 1029 507, 584, 663, 795, 905, 995, 1111 Monthly table .82, 158, 234, 344, 445, United States Government insurance agencies. 539, 617, 697, 829, 939, 1029, 1145 (See Insurance agencies of United States Gold reserves 74, 150, 226, 336, Government.) 434, 528, 606, 686, 818, 928, 1018, 1134 United States Government securities: Gold transferred to British Fund ... 91-92 Bonds: Banking and financial legislation: Member bank holdings: Feb. 28, 1939. Currency and Bank All banks on call dates: Notes Act, 1939 271 Dec. 31, 1938 264 Commercial banks 82, 158, 234, 344, Mar. 29, 1939 489 445, 539, 617, 697, 829, 939, 1029, 1145 June 30, 1939 728 Cost of living index 86, 162, 238, 348, Monthly table 308, 408, 502, 579, 449, 543, 621, 702, 833, 943, 1033, 1149 658, 790, 900, 990, 1106 Economic controls: Reporting banks: Exports and imports 1044 All banks, N. Y. C. and out- Internal controls 1044-1045 side N. Y. C, monthly and Economic situation, Discussion of 553-554 Wednesday figures .... 310, 410, Exchange Equalization Account: 504, 581, 660, 792, Bank of England transfer of gold to. 91-92 902, 992, 1108 Borrowing power limit removed . 1041 By districts and for Chicago, Gold reserves 74, 150, 226, 336, Wednesday figures 312, 412, 434, 528, 606, 686, 818, 928, 1018, 1134 506, 583, 662, 794, Foreign exchange rates: 904, 994, 1110 Discussion of 842, 1040 Prices . . 57, 133, 209, 317, 417, 511, 588, Monthly table 84, 160, 236, 346, 667, 799, 909, 999, 1115 447, 541, 619, 700, 831, 941, 1031, 1147 Yields. .. .56, 132, 208, 316, 416, 510, 587, Foreign exchange regulations 1039-1041 666, 798, 908, 998, 1114 Gold imports and exports ... 76, 152, 228, 338, Collateral security for Federal Reserve notes 436, 530, 608, 688, 820, 930, 1019, 1135 until June 30, '1941. 637 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX TO VOLUME 25 1177 Page Page United States Government securities—Continued. United States Government securities—Continued. Federal Reserve bank holdings: Treasury bills—Continued. All banks combined, end of month and Member bank holdings—Continued. Wednesday figures 38, 114, 190, 298, Reporting banks: 398, 492, 569, 648, 780, 890, 980, 1096 All banks, N. Y. C. and out- Discussion of 630, 710, 839, 1049 side N. Y. C, monthly and Each bank, Wednesday figures. . . .40, 116, Wednesday figures ..'310, 410, 192, 300, 400, 494, 571, 650, 504, 581, 660, 792, 782, 892, 982, 1098 902, 992,1108 Maturity distribution. . .39, 115, 191, 299, By districts and for Chicago, 399, 493, 570, 649, 781, 891, 981, 1097 Wednesdav figures .312, 412, Guaranteed obligations: 506, 583, 662, 794, Member bank holdings: 904, 994, 1110 All banks on call dates: Treasury notes: Dec. 31, 1938 264 Member bank holdings: Mar. 29,1939 489 All banks on call dates: June 30,1939 728 Mar. 29, 1939 489 Monthly table 48, 124, 200, June 30, 1939 728 308, 408, 502, 579, 658, Monthly table 308, 408, 502, 790, 900, 990, 1106 579, 658, 790, 900, 990, 1106 Reporting banks: Reporting banks: All banks, N. Y. C. and out- All banks, N. Y. C. and outside N. Y. C, monthly and side N. Y. C, monthly and Wednesday figures. 310, 410, Wednesday figures. . . .310, 410, 504, 581, 660, 792, 504, 581, 660, 792, 902, 992, 1108 902, 992, 1108 By districts and for Chicago, By districts and for Chicago, 'Wednesday figures 312, 412, Wednesday figures ... 312, 412, 506, 583, 662, 794, 506, 583, 662, 794, 904, 994, 1110 904, 994, 1110 Yields 56, 132, 208, 316, Outstanding, by agencies. . 58, 134, 210, 318, .416, 510, 587, 666, 798, 908, 998, 1114 418, 512, 589, 668, 800, 910, 1000, 1116 Yields on, Chart of 3 Holdings by types of investors 3-4 United States Housing Authority: Interest rates on 2, 3 Assets and liabilities 60, 136, 212, 320, Issued directly to Government agencies and 420, 514, 591, 670, 802, 912, 1002, 1118 trust funds 3 Guaranteed obligations outstanding. . .318, 418, Market, Discussion of. . .171, 243, 628, 847, 1049 512, 589, 668, 800, 910, 1000, 1116 Member bank holdings: Summary of operations, 1938 365-369 All banks on call dates: United States Maritime Commission: Dec. 31, 1938 264 Loans outstanding, Dec. 31, 1938 366, 371 Mar. 29, 1939 489 United States notes: June 30, 1939 728 Circulation 45, 121, 197, 305, Maturity distribution 489, 728 405, 499, 576, 655, 787, 897, 987, 1103 Monthly table 48, 124, 200, 308, 408, United States Treasurer: 502, 579, 658, 790, 900, 990, 1106 General account on deposit in Federal Re- Discussion of 354, 631, 839 serve banks. (See United States Govern- Reporting banks: ment deposits: Federal Reserve banks.) All banks, N. Y. C. and outside Uruguay: N. Y. C, monthly and Wednes- Bank of: day figures 50, 126, 202, 310, 410, Condition 78, 154, 230, 340, 504, 581, 660, 792, 902, 992, 1108 441, 535, 613, 693, 825, 935, 1027, 1143 By districts and for Chicago, Gold reserves 74, 150, 226, 336, Wednesday figures 52, 128, 204, 434, 528, 606, 686, 818, 928, 1018, 1134 312, 412, 506, 583, 662, Foreign exchange rates 84, 160, 236, 346, 794, 904, 994, 1110 447, 541, 619, 700, 831, 941, 1031, 1147 Treasury bills: Venezuela: Discount rates on 56, 132, 208, 316, Gold movements to and from U. S. 46, 122, 416, 510, 587, 666, 798, 908, 998, 1114 198, 306, 406, 500, 577, 656, 788, 898, 988, 1104 Federal Open Market Committee state- Volkmann, W. G., reelected Class B Director, ment on reduction of holdings 630 Federal Reserve Bank of San Francisco 7 Federal Reserve bank holdings: Wages and hours of labor: Discussion of 630, 710 Chart 458 Member bank holdings: Discussion of 458 All banks on call dates: Wagner, Robert F.: Mar. 29, 1939 489 Letter on 25th anniversary of signing of June 30, 1939 728 Federal Reserve Act 14 Monthly table 308, 408, 502, Wald, Haskell 871 579, 658, 790, 900, 990, 1106 War effects on American markets 839-845 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1178 INDEX TO VOLUME 25 Page Wayne, Joseph, Jr., reelected Class A Director, Wysor, W. G., reappointed Deputy Chairman, Federal Reserve Bank of Philadelphia 6 Federal Reserve Bank of Richmond . . 7 West Africa: Young, Owen D., redesignated Chairman and Gold production 75, 151, 227, 337, Federal Reserve Agent, New York 7 435, 529, 607, 687, 819, 929, 1019, 1135 Yugoslavia: Wheat crop reports 72, 682, 814, 924, 1014, 1130 Foreign exchange rates 84, 160, 236, 346, White, G. J., reelected Class A Director, Federal 447, 541, 619, 700, 831, 941, 1031, 1147 Reserve Bank of Atlanta 6 National Bank of: Wholesale commodity prices. (See Prices: Condition 78, 154, 230, 340, Wholesale commodity.) 441, 535, 613, 693, 825, 935, 1027, 1143 Williams, Alfred H., appointed Class C Director, Discount rates 82, 158, 234, 344, Federal Reserve Bank of Philadelphia 248 445, 539, 617, 697, 829, 939, 1029, 1145 Williams, F. D., reelected Class A Director, Fed- Gold reserves 74, 150, 226, 336, eral Reserve Bank of Chicago 7 434, 528, 606, 686, 818, 928, 1018, 1134 Wood, R. E.: Zinc production index: Reappointed Class C Director, Federal Re- Adjusted 63, 139, 215, 323, serve Bank of Chicago 7 423, 517, 594, 673, 805, 915, 1005, 1121 Reappointed Deputy Chairman, Federal Re- Unadjusted 64, 140, 216, 324, serve Bank of Chicago 7 424, 518, 595, 674, 806, 916, 1006, 1122 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE DISTRICTS MINN. MINNEAPOLIS S.DAK. KANSAS CITY KANS. ! ! -/ -2 Oklahoma City ^ ^— / Little#Rock/ t_ DALLAS® MTSS j^ TEXAS mmmm BOUNDARIES OF FEDERAL RESERVE DISTRICTS .-.— BOUNDARIES OF FEDERAL RESERVE BRANCH TERRITORIES (APPROXIMATE IN THE ST. LOUIS DISTRICT) ® FEDERAL RESERVE BANK QTIES. • FEDERAL RESERVE BRANCH CITIES O FEDERAL RESERVE BANK AGENCY Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis