Federal Reserve Bulletin, 1940-06

FEDERAL RESERVE BULLETIN JUNE 1940 Review of the Month—Effect of War Developments on American Markets Amendments to Regulation F Retail Installment Paper Held by Banks Member Bank Operating Ratios, 1939 From the Board9s Correspondence—Utilization of the Monetary Gold Stock; Effect of Margin Requirements on Customer's Position General Indexes of Business Activity BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Contents PAGE Review of the Month—Effect of War Developments on American Markets 489-494 General Indexes of Business Activity, by Frank R. Garfield 495-501 From a Legal Standpoint: Amendments to Regulation F 502-509 Authority of the President to Regulate Transactions in Property in which Foreigners Have an Interest 509 Executive Order and Regulations on Transfers of Property of Belgium, Luxembourg, and the Netherlands 509-513 General Rulings and General Licenses Issued by Secretary of the Treasury. . 513-516 Financial Transactions Under Neutrality Act of 1939 516 Inter-American Bank 517-525 Retail Installment Paper Held by Banks 526 Member Bank Operating Ratios, 1939 527-529 Commercial Banks Eligible and Ineligible for Federal Reserve Membership. . . 530 From the Board's Correspondence: Utilization of the Monetary Gold Stock 531-532 Effect of Margin Requirements on Customer's Position 532-533 Current Events 533-534 Foreign Banking Laws and Reports: Annual Report of the Bank of France . . 535-544 Revaluation of the Gold Stock of the Netherlands Bank . 544 National Summary of Business Conditions 545-546 Financial, Industrial, Commercial Statistics, United States (See p. 5U7 for list of tables.) 547-608 International Financial Statistics (See p. 609 for list of tables.) 609-627 Federal Reserve Publications 628 Board of Governors and Staff; Open Market Committee and Staff; Federal Advisory Council . 629 Senior Officers of Federal Reserve Banks; Managing Directors of Branches. . . 630 Subscription Price of Bulletin The FEDERAL RESERVE BULLETIN is issued monthly by the Board of Governors of the Federal Reserve System and is sent to member banks without charge. The subscription price in the United States, Canada, Mexico, and insular possessions is $2.00 per year or 20 cents per single copy; elsewhere, $2.60 per year or 25 cents per single copy. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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FEDERAL RESERVE BULLETIN VOL. 26 JUNE 1940 No. 6 ofi U/at 'PeveLopmentl on -f/metican AtatlcQtl Intensification and extension of warfare in tained at a rate somewhat below that reached Europe in the early part of May had imme- in /the middle of 1937. Awards for publie diate effects on commodity construction, however, were in smaller vol- Recent changes an( j seC urity markets of this ume than in other recent years. On the railm business roads, freight shipments began to increase in country. Prices of common April, following a considerable reduction durstocks, which had fluctuated within a narrow ing the first quarter of the year, and rose range for more than seven months following further during May. Income payments in a sudden increase at the outbreak of war in April and May were largely maintained at a September, fell sharply after May 9, and level about halfway between that prevailing prices of bonds also declined. Changes in prior to the outbreak of war and the peak commodity prices were mixed. At the outset reached at the end of 1939. Distribution of prices of imported industrial materials, such as tin, silk, and rubber, increased, reflecting to some extent uncertainty regarding avail- SELECTED BUSINESS SERIES ability of supplies in the future, and grain prices rose moderately. Within a few days grain prices broke sharply and beginning May 20 trading in grain futures was permitted only at prices above the close on May 18. After the middle of the month prices of 1194203-25 « 100 1923-25 1 *1 4 0 0 0 INDUSTRIAL PRODUCTION' imported materials also declined. Among 120 120 domestic industrial materials, steel scrap prices continued to increase and copper and 100 100 zinc advanced somewhat, while cotton de- V » ^ £ ^ T SEA A S D O JU N S A T L E D VA F R O IA R TION clined. The abrupt price changes in the security and commodity markets were caused in part by high-pitched speculative activity, swayed by the uncertainty of pending events. Activity in the steel industry increased considerably in May and in most lines of manufacturing and mining activity either remained fairly steady or increased somewhat. In the construction industry awards 1936 1937 1938 1939 1940 for private residential building showed a Sources: Income payments, Department of Commerce; industrial production, Board of Governors of the Federal Reserve rise from earlier levels and contracts for pri- System; common stock prices, Standard Statistics Company; wholesale commodity prices, Bureau of Labor Statistics. Latest vate nonresidential construction, which had figures shown for income payments and industrial production are estimates for May. Stock prices are shown through May 22 and been increasing in recent months, were main- commodity prices are estimated for the week ending May 25. 489 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Revietv of the Month smaller advances in prices of materials. Also, affected by the war, either through increased during most of this period there has been con- demand from belligerent nations or through siderable unused capacity and labor here, greater demand from domestic and neutral except in a few lines. Another important foreign sources for goods formerly obtained factor in the difference in price changes here from countries now at war. In this category and abroad has been the depreciation of for- are the machinery, aircraft, shipbuilding, eign currencies. wood pulp, and chemical industries. Produc- Foreign buying in the United States this tion and exports of industrial machinery, year has been substantial and has been con- particularly machine tools, have risen to uncentrated on industrial materials and prod- usually high levels and order backlogs are exucts, but prices of these commodities have ceptionally large, according to trade reports. declined, mainly because of domestic develop- Activity in the electrical machinery industry ments, particularly the decrease in specula- also has been at a high rate and exports have tive buying as compared with last autumn been large. The agricultural implement inand a reduction in the volume of industrial dustry has been operating at higher rates consumption. The declines were due partly, than in the past two years, owing chiefly to however, to actual or prospective increases large domestic and foreign demand for tracin supplies of imported commodities. tors, but increases in this branch of the ma- Prices of most foodstuffs, both raw and chinery industry taken as a whole have not manufactured, had shown little fluctuation been so marked as in the others mentioned. this year through April. Foreign demand for The aircraft and shipbuilding industries have these products was in about the same volume for some time been operating at or near caas a year ago, with large declines in crude pacity. In the former there has been some foodstuffs largely offset by marked increases plant expansion and, according to trade rein demand for manufactured foods. Do- ports, a considerable increase in efficiency mestic demand, while somewhat reduced through the extension of mass production from the latter part of 1939, was still above methods. At domestic shipyards there were other recent levels. on May 1 over 1,300,000 tons of merchant Volume of industrial production was vessels under construction or under contract, steady during April, following a rapid de- twice as much as a year earlier, and in addicline in the first quar- tion an extensive construction program by Industrial production in ter of the year, and in the United States Navy was under way. early months of year . Demand has also been maintained at high May increases were levels in some other industries not directly reported in some lines, particularly at steel affected by war. Output at meat-packing mills. It appears from preliminary data now establishments has been in large volume available that the Board's seasonally adjusted owing in part to a greater supply of hogs. index of industrial production, which had de- Rayon production and output of petroleum clined from 128 in December to 102 in April, and some petroleum products, particularly showed an upturn to 105 in May. fuel oil, lubricating oil, and kerosene, have The course of output in various industries been maintained at or near peak levels. Gasothis year has been unusually mixed; in some line production has declined this year but lines there have been marked decreases while nevertheless has been greater than is usual in others activity has been maintained at the at this season, and stocks of gasoline are now high levels reached toward the end of last unusually large. Coal production has conyear or has increased further. Industries in tinued in substantial amount, as a result of a which activity has been maintained or has high level of industrial consumption and also increased are chiefly among those directly 492 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Review of the Month greater than usual domestic consumption period of price reductions in April, but more owing to unusually severe weather conditions recently there has been a marked increase during the past winter. in orders from both domestic and foreign Decreases in activity in the first four sources. Allied demands were reported to months of this year were for the most part have increased greatly at this time as supin industries where output advanced to peak plies formerly received from Belgium, Luxlevels last year owing in part to a large vol- embourg, and Sweden were cut off. Export ume of buying for inventory accumulation trade has been an increasingly important at the beginning of the war. Included in this source of demand for the steel industry since group are several industries producing basic the outbreak of war. By March steel exports industrial materials, such as steel, cement, amounted to about 10 per cent of steel-prolumber, and textile fabrics, and a number of ducing capacity (16 per cent of output) as industries producing consumer goods largely compared with 4 per cent of producing cafor domestic use, such as shoes, clothing, and pacity (7 per cent of output) last summer. some paper products. For the past two or Increases in shipments of steel both to belthree months output of many of these prod- ligerents and to neutral nations have been ucts has probably been at a considerably considerable. lower rate than use in more advanced stages Activity in many other industries has also of manufacture or takings by ultimate con- increased recently, although not so sharply sumers. as in steel. Output of bituminous coal, coke, Production and sales of automobiles haveand pig iron has risen from the levels reached been maintained at high levels this year. earlier this year, some evidence of increased During the first four months 1,690,000 cars activity in the wool textile industry has apand trucks were produced as compared with peared in the past month, and paper produc- 1,350,000 last year. Dealers' stocks of new tion has advanced considerably. cars were built up in the first quarter, as is Value of construction contract awards in customary, and in April stocks were main- April and the first half of May showed a tained at a higher level than is usual at that further increase, reflecting printime of the year. In May, production was Bmldmg ip iiy j j private building, c a a rse n reduced slightly but sales also decreased according to figures of the F. W. Dodge Corsomewhat and consequently dealers' stocks poration. There was a considerable increase remained in large volume. Exports of pas-from March to April in contracts for private senger cars have been considerably smaller nonresidential building, principally schools since the beginning of the year than in the and hospitals; in earlier months increases in corresponding period of other recent years. this type of construction were chiefly in com- The number of trucks shipped abroad has mercial and factory buildings. Private resibeen only slightly smaller, whereas the value dential awards increased more than seasonof truck shipments has been considerably ally in the first half of May, following somegreater, probably owing to a shift in the types what less than the usual rise in April, and of trucks exported. continued above the level of a year ago. In the past month there has been a sharp In general, construction activity this spring increase in steel ingot production, which rose has been at about the same level as a year from a rate of about 60 ago, but with divergent trends among various Recent increase in £ f capacity in types of construction. Private building acper cen o industrial activity \ * " tivity has been in larger volume, while work April to about 80 per cent on publicly-financed projects has continued at the end of May. This rise reflected at first to decline. Most of the increase over last a response to orders placed during a brief JUNE 1940 493 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Review of the Month year in private construction has been in non- pletely halted. In May, the invasion of the residential types, particularly commercial and Netherlands and Belgium added two more factory building. Currently the amount of countries to those cut off from American nonresidential building actually under way, sources of supply. while larger than in the past two years, is While the importance of each of these nabelow the previous high level reached in 1937. tions individually in our trade was not great, Residential building has shown little collectively they were a market of some imchange in the past year and continues above portance, especially for certain goods. Exthe peak volume attained in early 1937. There ports to Belgium and the Netherlands, tohave been divergent movements in residengether with the Scandinavian nations— tial building also; apartment construction Denmark, Norway, Sweden, and Finland— has declined somewhat, while building of increased after the outbreak of war and from single-family dwellings currently is higher September through March averaged about than at any time in the last ten years. $33,000,000 a month, or approximately 10 Mortgages selected for appraisal by the per cent of all United States exports. Federal Housing Administration for new Agricultural products, consisting mainly dwelling construction are at present about of cotton, soybeans, wheat, and wheat flour, two-fifths higher than a year ago, whereas comprised over two-fifths of our shipments those on existing properties are in smaller to these countries and amounted to about 18 volume. Mortgage foreclosures in metropoliper cent of our total exports of farm prodtan communities have continued the decline ucts. In the case of soybeans, the Netherunder way since early in 1935, according to lands and Scandinavia were almost the only figures of the Federal Home Loan Bank export markets and had taken over 12 per Board. Rents and vacancies remain praccent of the 1939 crop. tically unchanged, as has been the case for Exports of petroleum products constituted nearly two years. Building materials costs are at about the levels reached on the rise 12 per cent of our shipments to these counimmediately following the outbreak of war, tries, while automobiles, which ordinarily but below the 1937 level. Wage rates in the make up a similar part of the total, had building trades continue at about the 1937 already been reduced since the outbreak of level in most cities. war to about 5 per cent. In April exports of United States mer- Chief imports from these countries have chandise amounted to $317,000,000, 10 per been wood pulp and paper, although cut diacent less than the high average monds, tin, iron, and steel, and textile manu- Foreign trade $ 0,000,000 for the preced- factures have also been important. Imports of 35 ing four months, but still 35 per cent above of wood pulp from Scandinavia were 64 per the level prevailing prior to the outbreak of cent of the total quantity of wood pulp taken war. As a result of the German invasion by this country in 1939 and represented about of Norway and Denmark in April, the Allied 14 per cent of domestic consumption. The blockade was extended to these countries and Netherlands Indies are of considerable imother Scandinavian ports were cut off by ship- portance in our import trade, but up to date ping difficulties. Consequently United States events in Europe have not affected this source trade with these nations was almost com- of supply. 494 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

by FRANK R. GARFIELD Senior Economist Division of Research and Statistics I N periods of little change the various in- ing the great stimulus offered by events of dexes of business activity are likely to the past decade. Only over the long term move along more or less together, not chal- does improvement appear substantial. In the lenging attention. When rapid changes oc- past thirty years a good deal of the pioneercur, as in 1933, 1937-1938, and 1939-1940, ing work has been done, more support has differences in indexes show up in conspicu- become available for such work, and many ously different fluctuations. In the final four more people have been technically trained to months of last year, for example, while the undertake it. Experts now have at their Board's adjusted index of industrial produc- disposal a fairly detailed record of past events tion was rising by 24 per cent, the Commerce over a considerable period. They also have a Department's index of income payments ad- chance to see why some experiments in index vanced by only 5 per cent. number construction and analysis worked out At such times people who want to know better than others. It is evident, for example, what is happening in business find again that that attempts to measure activity by financial no single indicator can be relied on to answer series, such as bank debits and money in cirall pertinent questions, and index makers go culation, have encountered particularly seriabout the business of reconstructing their in- ous obstacles, because of marked changes in dexes with renewed enthusiasm. Attention commodity prices, in the volume of security is focused on the need for indexes to cover transactions, and in the amount of currency areas of business activity not adequately cov- hoarding. Thus, in the early 1930's increases ered and for improvement in the accuracy of in money in circulation were due not to inexisting measures, particularly in periods of creased payrolls and retail trade, as in some unusually divergent movements among vari- earlier periods, but rather to the hoarding ous industries. Thus, while in most periods that accompanied rapid deterioration in the steel ingot production may do fairly well as banking situation. an indicator of activity in machinery and The main purpose of this article is to reother steel-consuming industries as a group, view the development of general indexes of it is far from satisfactory at turning points business activity in the past thirty years and in business movements and particularly in thereby to present some of the major probperiods like the last nine months; ingot pro- lems which index makers and users have duction from August to March could be rep-faced and will face in the future. Problems resented by a V upside down, while activity treated only incidentally in the account of in the steel-consuming industries showed a developments during particular historical slower rise and then little change at an ad- periods are commented on separately in secvanced level. As business analysts and index tions at the end of the article. No direct anmakers gain new insight into their problems, swer has been made on the very basic issue new force is given also to efforts to collect concerning what should be included in inadditional data and make more accurate esti- dexes of business activity. The record shows mates for use in index construction and busi- that people have had very different ideas ness analysis generally. about this. It can be argued that all activi- Progress in collection of data, construction ties in agriculture and industry, in distribuof index numbers, and interpretation of in- tion as well as production, in industries prodexes has been slow in comparison with ducing services as well as those dealing with what might have been, especially consider- commodities should be covered in one index. Note.—Views expressed in signed articles published in the BULLETIN are those of the writers and not necessarily those of the Board of Governors of the Federal Reserve System. JUNE 1940 495 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

General Indexes of Business Activity On the other hand, there are strong argu- 1896 to 1909, estimated that the "internal ments for treating many of these broad commerce" covered directly in his index was groups separately. The discussion, when less than one per cent of total domestic transrealistic, is concerned with the available data actions of all sorts. E. W. Kemmerer, in his as well as with theoretical issues as to the work on Money and Prices, combined some best way to analyze business developments. 15 series, including estimates of the popula- Decisions on what should be included are of tion, into an annual index of The Growth of great importance because they account to a Business from 1879 to 1908, but the data he considerable extent for differences in the had would now be regarded as meager intiming and amplitude of fluctuation shown deed. by different indexes, as, for example, in the Reviewing the prospect for action to oblast nine months. The historical account tain basic data on business activity and shows how this problem has recurred again related matters, Mitchell noted various and again over the years. Discussion of obstacles: mathematical formulae, at times the center of interest for index makers, has been ". . . the reluctance of private interests to divulge information, the diversity of business omitted. Consideration of developments in practices in various trades and sections of the the theory of business fluctuations, closely country, the continual changes going forward related to the construction and use of index in business organization, the alterations in the numbers, has been made incidental and left relative importance of different raw materials and still more in the kinds and qualities of manulargely for another occasion. So also, the factured products, the technical puzzles of staformulation of a comprehensive program for tistical classification and averaging, etc. In improvement in business indexes and busi- view of these difficulties, the prospect of rapid improvement in the data for business forecasting ness analysis is not part of this story. This is not so bright as might be desired. is only a general review of the efforts of "The vigor of the efforts made to overcome the index makers to bring the multiplicity of de- difficulties will depend largely upon the demands velopments that go under the head of "busi- of business men for better service than they are now receiving. To-day the one class which evinces ness activity" a little more clearly in focus the clearest sense of the usefulness of a compreas an aid to people in industry and govern- hensive statistical survey of the business present ment who make important decisions in the as a basis for forecasting the business future is light of recent and prospective changes in the class of speculators in stocks. But many men who prefer to call themselves investors, and the business situation. an increasing number of brokers, bankers, merchants, manufacturers, contractors, and the like, Historical Review are becoming active consumers of such reports. Since these classes can be counted upon to sub- Thirty years ago.—The need for thorough- scribe to those papers and confidential agencies which give them the post satisfactory service, going factual analysis of business develop- business forecasting will doubtless become a more ments was set forth in some detail by Wesley extensive profession, and make such progress as C. Mitchell in his pioneering work on Busi- is possible under private initiative spurred on by competition. ness Cycles, published in 1913, and he put "There are many lines of business, however, first on his list of desirable new barometers concerning which information that is both re- "a general index number of the physical vol- liable and comprehensive cannot be secured by ume of trade", adding that "separate aver- private enterprise. Whether the government ages should be struck for the great depart- will extend the scope of its present activities in this field will probably be determined chiefly by ments of industry". The data available then large issues of public policy. . . ." to Mitchell and other analysts for measuring business activity even on an annual basis War and postwar periods.—The next matcovered only a few items, such as output of ters of public policy greatly to affect stacoal and pig iron, consumption of cotton and tistical work were those of a wartime econwool, receipts of agricultural products in a omy. Many Federal agencies, and particufew cities, freight traffic, foreign trade, bank larly the War Industries Board, needed much clearings, stock sales, and business failures. more commodity information than had pre- Some of these figures were in dollar terms, viously been available. Some of this they obothers in physical units. Irving Fisher, whose tained and used in their efforts to supply the interest in the equation of exchange led him goods required to maintain military efficiency to combine a number of these series into an and civilian morale. But measures of general annual index of The Volume of Trade from activity were still quite rough, as indicated 496 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

General Indexes of Business Activity clearly in Mitchell's summary of The His- proach was followed years later by George F. tory of Prices During the War; in present- Warren and Frank A. Pearson in constructing an annual index of the physical volume ing an index of the physical volume of producof production of 90 raw materials for the tion in the United States going back to 1839. years 1913 to 1918, he noted that "concerning Clearly terms like "production" and "busifabricated commodities . . . the data are so ness activity" come to mean very different fragmentary that little can be made of them." things even for one index when that index is In the years immediately following the extended over 100 years of the history of this war interest in the measurement of business country. Always, continuous lines on a chart changes was high. Several new indexes, both extending over more than a few years need annual and monthly, were published, and the to be interpreted with care, considering the collection of current data was greatly ex- great changes that occur in the basic ecopanded. The intensive research that went nomic set-up—from home-industry to facinto the making of some of these indexes— tory, from horse and buggy to automobile— setting objectives, searching Census records, and also in the availability of data to repretesting new techniques—is indicated clearly sent changes in activity. by the 63 pages, large quarto, of descriptive The National Bureau of Economic Rematerial that Edmund E. Day and Warren M. search pioneered during early postwar years Persons published in the Review of Economic in making studies of the national income pro- Statistics concerning their annual indexes of duced in various lines and paid out to various output in agriculture, manufacturing, and groups. Later, aiming to trace the flow of mining, and all three combined. This apincome and commodities through the various peared in 1920 and 1921, shortly after the parts of the economy, the Bureau made com- Review was first issued, and included the prehensive studies estimating for postwar results of study over several years. years current dollar amounts in each instance Most of the indexes published at this time and also making allowances for price fluctuawere annual indexes, which furnished a backtions in order to show changes in terms of ground for work on monthly indexes, then constant "1929 dollars." This material apjust being started, and provided some hispeared in Simon Kuznet's Commodity Flow torical perspective for analyzing current deand Capital Formation, published in 1938; velopments, particularly with regard to ecoother studies in this general field have been nomic growth. Some of the annual indexes undertaken at the Bureau by Frederick C. were extended back to the 1890's, others, on Mills, Arthur F. Burns, and Solomon Fabrithe basis of meager miscellaneous informacant. The work on income has been carried tion, to the 1860's. forward in recent years by Robert R. Nathan At this time questions concerning what at the Department of Commerce. Currently should be included in indexes of general the Department is also making a revision of business activity became more clearly outan index of manufacturing output, based on lined. Walter W. Stewart's annual index Census physical volume data, first compiled included railroad transportation, not in the bv Edmund E. Day and Woodlief Thomas Harvard index, but did not cover activities for which physical volume data were unavail- and subsequently brought up to date by Aryable. At a meeting of the American Eco- ness Joy and Vladimir Kolesnikoff. nomic Association in 1920 Stewart empha- The statistical problems involved in comsized the experimental character of work so prehensive studies are of the first magnitude far and remarked that "so long &s whole in-and become particularly marked when dealdustries are omitted from the index, such as ing with monthly or weekly rather than anthe building industry, the work of measuring nual figures. Even for such a limited field as changes in the volume of production is little manufacturing, in which less than a fourth more than begun." Carl Snyder and Willford of the gainful workers are now engaged, I. King noted the extent of agreement in gen- problems of measurement are very great, as eral movements shown by the various in- was indicated by Edmund E. Day and Wardexes. Snyder had worked out a number of ren M. Persons in 1919 and 1920 and elabannual indexes for broad areas of economic orated further in the intensive Day-Thomas activity, using such miscellaneous series as study of The Growth of Manufactures, pubcould be obtained. The same general ap- lished in 1928. At the same time, of course, JUNE 1940 497 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

General Indexes of Business Activity indexes that cover limited areas of economic indexes. That is partly because some proactivity, even as important as manufacturing ductive activities, particularly in agriculture, and mining, cannot represent accurately the are measurable only on an annual basis. course of fluctuations in activity generally. Also monthly figures offer much more oppor- The period after the war was the time tunity for analyzing "cyclical fluctuations/' when study of current developments was first "lags," and the like. When the people at organized on a monthly basis, particularly by Harvard constructed their "Business", or the Harvard University Committee on Eco- "B", curve in 1919 they were looking not for nomic Research. Also, considerable progress a measure of activity but for a series that was made then in increasing the amount of would move regularly in relation to curves data available monthly, as the Federal Re- for "Speculation" and "Credit." For the serve System and various governmental period before the war they put pig iron proagencies pressed for more data and as trade duction, bank clearings outside New York associations developed their reporting serv- City, commodity prices, and reserves of New ices. The records show, for example, that York City banks ("reversed in sign") into monthly figures on production of leather, their "B" curve; beginning in 1919 their "B" shoes, automobiles, tires and electricity were curve was a composite of bank debits outside started in the years 1919 to 1922. The Sur- New York City and commodity prices. In vey of Current Business was first issued by both periods the series were adjusted for seathe Department of Commerce in 1921 and an sonal variations and for growth and also increasing amount of information was made translated into terms of "standard deviations available there and in other publications. from normal" to take account of the fact that Closely paralleling the increase in monthly some series ordinarily fluctuate more widely reporting was action to collect Census data than others. These adjustments were based on manufactures every two years instead of primarily on the idea that there was a regular every five, beginning in 1921. cycle, except in war time, and that it could Monthly and weekly indexes in past tiventy be found by the exercise of sufficient statistiyears.—The variety of general monthly and cal patience. weekly indexes developed since the early Some other investigators, notably Carl 1920's has been great. Most of the problems Snyder, constructed composite monthly indiscussed with relation to annual indexes daxes designed partly with a view to measurhave appeared here, and there have been ing the current position in the cycle but a good many more besides. The data avail- with considerable emphasis on relating busiable have been much less adequate for many ness movements to general price and credit individual industries and entirely missing developments. Snyder then included in his for some others. The number of working monthly index series relating to all sorts of days in a month has changed in accord- business activity, including real estate transance with the calendar, business customs, actions and stock sales as well as building and governmental action, calling for chang- activity and the production and distribution ing allowances in reported data, series by of commodities, both agricultural and indusseries. The seasons have come and gone trial. He deflated value series for the purmore or less regularly but over the years pose when necessary. He made allowances "seasonal" fluctuations have been altered, in- for growth as well as seasonal influences and dustry by industry, as when the automobile his index was expressed in terms of a per manufacturers changed their dates for the ?ent of "normal". The index currently issued introduction of new models, and it has been by the Federal Reserve Bank of New York necessary to adapt seasonal adjustments to is an outgrowth of this index but there have many such developments. Further, growth been changes in the activities covered and in in industry has continued, not necessarily the methods used in constructing the index, at the same pace in industries for which as described by Norris 0. Johnson in the monthly data are available as in other Journal of the American Statistical Associaindustries. tion for June 1938. Moreover, one of the basic problems with Another group, including people at the regard to annual indexes—what they are Federal Reserve Board, proceeded along a supposed to measure—has been much more different line, not attempting to set up either acute for monthly indexes than for annual a mechanical forecasting device or a com- 498 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

General Indexes of Business Activity posite measure of all business activity in ance for changes in output per man-hour, is terms of "normal'\ They aimed rather to taken to represent the course of production. develop separate measures as precise as pos- The accuracy of monthly fluctuations shown sible for selected parts of our economic life— should be considerably improved by the introsuch as manufacturing, mining, building, duction of the new series and also by revision railroad freight transportation, and depart- of the working day allowances and seasonal ment store sales. They early discarded mar- adjustment factors. Inclusion of a man-hour ketings of crops and the like as measures of series for machinery, with some adjustment current activity in agriculture, recognizing for level, will eliminate to a large extent the that much of agricultural production was difficulty encountered heretofore, as in 1933 really on an annual basis. In 1922 they issued and 1939-1940, with using output of steel an index of physical production in "basic in- ingots to indicate monthly fluctuations in dustries" including monthly output or con- all steel-consuming lines except automobile sumption of materials in mining and manu- production. facturing. This was followed in 1927 by the The index for recent years will be conpresent more comprehensive index of indus- structed on the basis of the relative importrial production, based on 60 series relating tance of production in various lines in 1937 to the physical volume of production in man- rather than in 1923 (1923-1925 for minerals) ufacturing and mining. The importance of with the consequence that some products each series in this index was decided pri- whose prices have declined most since 1923— marily on the basis, in manufacturing, of such as textiles—will have less importance in the value added in 1923—that is, the value the revised index and other products more. of products minus the cost of materials and The revised index will be expressed in terms fuel—and, in mining, on the basis of the of the five-year average 1935-1939 as 100. average value of products in 1923-1925. Some This particular change will have little effect series were given additional importance— on the level of the total index, because the "imputed weights"—because they were used present index on a 1923-1925 base averages to represent related manufacturing activities close to 100 for the five years 1935-39; but for which no monthly series were available. the current figures for individual series and The series were individually adjusted for groups will all be fairly close to 100 rather changes in working days and for seasonal than spreading all the way from 9 to 900 as influences; this process involved much more they would if the 1923-1925 average as 100 work than single over-all adjustments of a were retained. total index but provided a more satisfactory The list of current monthly indexes has adjustment for the total and also gave ad- grown and in recent years a number of justed individual series essential for realistic weekly indexes have been developed and exanalysis of business developments. tensively used. Weekly indexes are much In a revision currently being made this in- more prompt than monthly indexes can be, dex is being reconstructed along quite dif- except on the basis of estimates. One of ferent lines, although the basic idea is still the most important problems with regard to to measure the physical volume of production weekly indexes is the scarcity of data— in manufacturing and mining. The changes more than one special technique has been are aimed to make more accurate both the developed in an effort to make a few series, shifts in level over the years and the like steel output, automobile production, carmonthly fluctuations over short periods. loadings, and electric power production Comparison of 1939 levels with 1929 or broadly representative—and another prob- 1919 levels can never be precise because of lem is the irregularity, from one week to the difficulty of measuring such important another, of the activities reported. Adjustchanges as those in the kind and quality of ment for seasonal changes is particularly products; but the accuracy of such compari- difficult on a weekly basis. In general, howsons is being increased by adding new series, ever, it appears that the amount of informaparticularly for certain rapidly growing in- tion now available weekly is more than could dustries like rayon, and adjusting monthly be obtained on a monthly basis thirty years series to Census or other comprehensive ago, that more weekly data are being made bench-mark data. In some of the new series available, and that weekly indexes may well the number of man-hours worked, with allow- become increasingly useful. JUNE 1940 499 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

General Indexes of Business Activity- Special Problems of additional current information about the later stages of production and about dis- The historical review has indicated many tribution would be very useful, not only for of the problems met at various times in analysis of developments in important inconstructing index numbers to show the dustry groups but also to improve current course of "business activity". Comment has general indexes. When reliable data are not been made on the many different areas of available, analysts must guess as best they economic activity covered by different incan. This usually means representing some dexes. Some reference has been made to speactivities by available figures for other activicial problems in connection with monthly ties. This is a useful device but the results and weekly indexes. Further discussion cenare generally much less satisfactory than ters around the development of data; the adequate reporting would provide. grouping of available series; the treatment of economic growth; and the use of indexes Groups.—The usefulness of detailed data in business analysis. and general indexes has been greatly increased by the compilation of figures for Data.—All the work on construction of groups within the total. Such group figures general indexes and significant groupings has have been prepared in the form of indexes been dependent on the data at hand. Descriprelative to a base period, and, in more recent tions of monthly indexes going back before years, also as aggregates that add up to the the World War—like those compiled by the total index. These figures show what makes Cleveland Trust Company and the American the total index move in each instance and also Telephone and Telegraph Company—show provide a basis for much more discriminating real improvement over the years in both the analysis of developments. The usefulness of amount and quality of the data available; but particular groupings changes with circumon the whole progress has been slow and stances ; one suited to peacetime, for example, irregular. After expansion in information may be quite inadequate for analysis of warduring the war and the early 1920's, there time developments. Thus, index makers must was a setback during years of declining accontinually regroup data to interpret new tivity. Some additional impetus was later situations. provided by certain of the code authorities under the National Recovery Administration One early classification of current producand by various governmental organizations. tion data, then relating largely to materials, Monthly figures on the number of man-hours was by the sources of materials, whether worked in many industries, both in manufac- farms, forests, fisheries, or mines. This turing and elsewhere, have been made avail- grouping is still used occasionally but much able by the Bureau of Labor Statistics since more attention is focused now on the nature 1934, following pioneer work in this field by of products and their markets. Goods are the National Industrial Conference Board. sometimes classified according to how durable In recent years the Department of Com- they are and sometimes according to whether merce has expanded its collection of current they are purchased by producers or by condata in the field of wholesale and retail dis- sumers. Classification by durability grew tribution as well as manufacturing. Of great out of the experience of the early 1930's when importance is their recent initiation of output of long-lived goods generally declined monthly reports on dollar volume of manu- much further than output of other products, facturers' shipments as well as inventories, showing a sharper contrast than that between new orders, and unfilled orders, all by in- producers' and consumers' goods; but such dustry groups. They have also undertaken analysis had been suggested at least as early to speed up publication of material already as 1913 when Mitchell noted that "the total collected. The Bureau of Mines has recently volume of trade did not shrink in so extreme begun the collection of current data on min- a degree [as the production of pig iron], beerals strategic for war purposes. cause purchase of food, clothing, and the like cannot be stopped or postponed like the pur- Further marked progress should be poschase of pig iron." sible as more people recognize how essential additional facts are for realistic analysis and Data have also been grouped by stages of how important it is that collection efforts processing and distribution, sometimes with should be concentrated on data that are sig- a view to estimating inventory changes, but nificant and not just easy to get. Collection the usefulness of material of this sort has 500 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

General Indexes of Business Activity been limited greatly by the lack of sufficient these indexes has become an integral part of data on a comparable basis. Such analysis much private and public planning. But inby commodity groups—as for steel and steel- dexes are complicated devices, often found consuming industries—has been found of puzzling. value in an experimental way and could be One frequent difficulty has been with the made more useful if additional pertinent data meaning of "100", which has been used in were to be collected. many different ways. In the group of indexes Treatment of Economic Growth.—In re- in which allowance is made for growth, "100" gard to a number of problems, such as treat- refers to "normal." This "normal" changes ment of working days and seasonal influences, continually. In other indexes "100" is simply there has been fairly clear agreement among the average in some fixed base period, like the index makers in this field. But in regard to years 1923-1925. Many, though not all, of treatment of growth in activity over the these indexes constructed in the latter part of years, marked differences have continued. the 1920's were put on the same base, 1923- Some analysts have sought to remove from 1925, to facilitate comparisons. Since then, their indexes such elements of growth as could however, it has been necessary to use more rebe measured. They have done this to facili- cent base periods in various new indexes. The tate understanding of the current position in resulting variety of fixed base periods has "the business cycle"; to indicate the degree made comparisons somewhat difficult. Recogof prosperity relative to "normal"; and to nizing this, the Central Statistical Board has make use of series with steep trends—like just recommended that Federal agencies, in electric power production—as measures of all their general purpose indexes, use the general developments. These analysts have average for the five years 1935 to 1939 as 100. also wanted measures of rates of growth to The Reserve Board's indexes will be calcuuse separately. lated on that base as soon as is feasible. Others have preferred to retain the growth Often there is also uncertainty about the factor as an important element affecting busi- meaning of terms like "industrial producness fluctuations. They note also the prac- tion" and "business activity," used as titles tical difficulties of estimating trends for re- for indexes. Brief titles can give little more cent periods, in effect based on forecasts as than a clue to the user; to understand current well as on past experience. They point to fluctuations in any index, he must know at drastic revisions of allowances since 1929 and least in a general way what the index includes to different opinions on probable growth in and how it has behaved before. the 1940's as evidences of the rough nature of Index makers can facilitate interpretation such adjustments. by providing adequate descriptions of their Keeping the growth element shown by indexes and making discriminating use of available series is by no means the whole their indexes and all other pertinent informaanswer to the problem of showing actual tion in their own analyses of business developgrowth. The current data for particular ments. This ordinarily means that several industries must be adjusted to more compre- measures—such as those for production, emhensive bench-mark data, such as are pro- ployment, and income "in the great departvided by the Census, and then account must ments of industry"—will be used; that disbe taken of shifts in level for other industries. cussions will be concerned with groups and Further than that, changes in the kinds and individual lines as well as with totals; that qualities of goods, which may be large over consideration will be given to many related the years, are generally impossible to meas- elements, such as orders, inventories, and ure. This problem has already received a prices; and that in each situation the imporgood deal of attention, as in the writings of tance of various items will be considered with Edmund E. Day, Woodlief Thomas, and reference to that particular situation and not Frederick C. Mills. There is, however, con- according to some fixed formula. The probsiderable work yet to be done in this field and, lem of business analysis is at least that big. meanwhile, great discretion is necessary on The value of general indexes of business acthe part of those who use indexes extending tivity in such analysis will continue to depend over any considerable period of time. on the discretion with which they are inter- Use of indexes.—Increasing use has been preted as well as on the nature of the basic made of general indexes and forecasting of data available and the skill of index makers. JUNE 1940 501 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Ttom a Jlecja/Standpoint Administrative interpretations of banking laws, new regulations issued by the Board of Governors and other similar material of interest to bankers. tional banks: Provided, however, That funds Amendments to Regulation F shall not be invested in a Common Trust Fund The Board of Governors of the Federal Re- of the type provided for in subsection (d) of serve System, effective June 1,1940, amended this section unless such investments are speci- Regulation F, relating to trust powers of na- fically authorized by the State statutes. tional banks, so as to permit the operation of As used in this regulation the term "Com- Common Trust Funds invested principally in mon Trust Fund" means a fund maintained mortgages, in States in which there is specific by a national bank exclusively for the collecstatutory authority for the operation of such tive investment and reinvestment of moneys funds. The Board for some time has had contributed thereto by the bank in its caunder consideration a proposal by representa- pacity as trustee, executor, administrator, or tives of member banks for such amendments guardian.1 to its regulation and the proposal was ap- The purpose of this section is to permit the proved by representatives of banking asso- use of Common Trust Funds, as defined in ciations. It was represented to the Board section 169 of the Internal Revenue Code,2 that smaller trust institutions may not have for the investment of funds held for true facilities for operating Common Trust Funds fiduciary purposes; and the operation of such composed principally of securities, the opera- Common Trust Funds as investment trusts tion of which is now permitted by the Board's for other than strictly fiduciary purposes is Regulation F, but would have facilities for hereby prohibited. No bank administering operating Common Trust Funds composed a Common Trust Fund shall issue any docuprincipally of mortgages. The amendments ment evidencing a direct or indirect interest to Regulation F will enable such Funds in such Common Trust Fund in any form operated under State statutes to obtain cer- which purports to be negotiable or assignable. tain tax exemptions which are granted by The trust investment committee of a bank the Federal revenue laws to Common Trust operating a Common Trust Fund shall not Funds operated in accordance with the permit any funds of any trust to be invested Board's regulations. The amendments to in a Common Trust Fund if it has reason to Regulation F consist of the addition of a new believe that such trust was not created or is subsection (d) to section 17, together with not being used for bona fide fiduciary purcertain incidental amendments to the existing poses. provisions of this section. The text of section Common Trust Funds administered under 17, as amended, is set forth below: this section shall be subject to the following requirements: SECTION 17. COMMON TRUST FUNDS (1) Assets in a Common Trust Fund (a) In general—Funds received or held by shall be considered as assets held by the a national bank as fiduciary may be invested bank as fiduciary; collectively in any Common Trust Fund established and maintained in accordance (2) A bank administering a Common with the provisions of this section whenever Trust Fund shall not invest any of its own the laws of the State in which the national 1 As used in this regulation, the term "guardian" means guardbank is located authorize or permit such in- ian or committee of the estate of an infant, incompetent, or absentee, by whatever name known in the State in which a parvestments by State banks, trust companies, ticular national bank is located. or other corporations which compete with na- 2 For applicable provisions of the Internal Revenue Code, see Appendix. 502 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

From a Legal Standpoint funds in such Common Trust Fund and if Fund shall be administered in conformity a bank, because of a creditor relationship with the rules and regulations, prevailing or any other reason, acquires any interest from time to time, of the Board of Goverin a participation in a Common Trust Fund nors of the Federal Reserve System perunder its administration the participation taining to the collective investment of trust shall be withdrawn on the first date on funds by national banks, and shall contain which such withdrawal can be effected in full and detailed provisions not inconsistent accordance with the provisions of this with the provisions of such rules and regusection; lations as to the manner in which the Com- (3) A bank administering a Common mon Trust Fund is to be operated, including Trust Fund shall not have any interest3 provisions relating to the investment powin the assets held in such Common Trust ers of the bank with respect to the Common Fund, other than in its capacity as fidu- Trust Fund, the allocation of income, prociary, except to the extent permitted for a fits and losses, the terms and conditions temporary period as provided in the im- governing the admission or withdrawal of mediately preceding paragraph. participations in the Common Trust Fund, the auditing and settlement of accounts of (6) Common Trust Funds for investment the bank with respect to the Common Trust of small amounts.—Subject to all other pro- Fund, the basis and method of valuing visions of this regulation except subsections assets in the Common Trust Fund, the basis (c) and (d) of this section, cash balances reupon which the Common Trust Fund may ceived or held by a bank in its capacity as be terminated, and such other matters as trustee, executor, administrator, or guardian, may be necessary to define clearly the rights which the bank considers to be individually of participants in the Common Trust Fund. too small to be invested separately to ad- A copy of the Plan shall be available at the vantage may be invested, with the approval principal office of the bank for inspection, of the trust investment committee, in parduring all banking hours, to any person ticipations in a Common Trust Fund, prohaving an interest in a trust any funds of vided the total investment of the funds of any which are invested in a participation in one trust in one or more such Common Trust the Common Trust Fund; and upon reason- Funds shall not exceed $1,200. able request a copy of the Plan shall be (c) Common Trust Funds for general in- furnished to such person. vestment.—Subject to all other provisions of (2) Trust investment committee to apthis regulation except subsections (6) and prove participation.—No funds of a trust (d) of this section, funds received or held shall be invested in a participation in a by a bank in its capacity as trustee, executor, Common Trust Fund without the approval administrator, or guardian may be invested of the trust investment committee. Before in participations in a Common Trust Fund permitting any funds of any trust to be administered pursuant to the provisions of invested in a participation in a Common this subsection. All participations in such a Trust Fund, the trust investment com- Common Trust Fund shall be on the basis of mittee shall review the investments coma proportionate interest in all of the assets of prising the Common Trust Fund; and, if the Common Trust Fund. it finds that any such investment is one in (1) Common Trust Fund to be operated which funds of such trust might not lawunder written plan.—Each Common Trust fully be invested at that time, funds of such Fund administered by a bank shall be estab- trust shall not be invested in a participation lished and maintained in accordance with a in such Common Trust Fund. written plan (referred to herein as the At the time of making the first invest- Plan) approved by a resolution of the ment of funds of a trust in any Common bank's board of directors and approved in Trust Fund, the bank shall send a notice writing by competent legal counsel. The of such investment to each person to whom Plan shall provide that the Common Trust a regular periodic accounting ordinarily would be rendered, except that such notices 3 A bank shall not be deemed to have an interest in assets in which collective investments are made merely because of the fact need not be sent to a court unless required that the bank owns in its own right other stocks, or bonds or other by the court, and except that such notices obligations of a person, firm, or corporation, the stocks, or bonds or other obligations of which are among the assets of a Common need not be sent where the trust instru- Trust Fund. JUNE 1940 503 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

From a Legal Standpoint ment specifically authorizes investments in (5) Miscellaneous limitations.—No Common Trust Funds. funds of any trust shall be invested in a (S) Common Trust Fund to be audited participation in a Common Trust Fund if annually.—A bank administering a Com- such investment would result in such trust mon Trust Fund shall, at least once during having an interest in the Common Trust each period of twelve months, cause an Fund in excess of 10 per cent of the value audit to be made of the Common Trust of the assets of the Common Trust Fund, Fund by auditors responsible only to the as determined by the trust investment comboard of directors of the bank. The report mittee, or the sum of $25,000, whichever is of such audit shall include a list of the in- less at the time of investment. If the bank vestments comprising the Common Trust administers more than one Common Trust Fund at the time of the audit which shall Fund under this subsection, no investment show the valuation placed on each item on shall be made which would cause any one such list by the trust investment committee trust to have an interest in all such Comof the bank as of the date of the audit, a mon Trust Funds in excess of the sum of statement of purchases, sales and any other $25,000; and, if the bank administers investment changes and of income and dis- Funds under both subsections (c) and (d) bursements since the last audit, and appro- of this section, no investment shall be made priate comments as to any investments in which would cause any one trust to have default as to payment of principal or in- an interest in all such Funds in excess of terest. The reasonable expenses of any the sum of $25,000. In applying the limitasuch audit made by independent public ac- tions contained in this paragraph, if two countants may be charged to the Common or more trusts are created by the same Trust Fund. settlor or settlors and as much as one-half The bank shall, without charge, send a of the income or principal or both of each copy of the latest report of such audit an- trust is payable or applicable to the use of nually to each person to whom a regular the same person or persons, such trusts periodic accounting of the trusts partici- shall be considered as one. pating in the Common Trust Fund ordi- No investment for a Common Trust Fund narily would be rendered or shall send ad- shall be made in stocks, or bonds, or other vice to each such person annually that the obligations of any one person, firm, or correport is available and that a copy will be poration which would cause the total furnished without charge upon request. amount of investment in stocks, or bonds (4) Value of assets to be determined or other obligations issued or guaranteed periodically.—Not less frequently than by such person, firm, or corporation to exonce during each period of three months ceed 10 per cent of the value of the Comthe trust investment committee of a bank mon Trust Fund, as determined by the administering a Common Trust Fund shall trust investment committee, provided that determine the value of the assets in the this limitation shall not apply to invest- Common Trust Fund. No participation ments in obligations of the United States shall be admitted to or withdrawn from the or for the payment of the principal and Common Trust Fund except on the basis interest of which the faith and credit of the of such valuation and on the date of the United States shall be pledged. determination of such valuation or, if per- No investment for a Common Trust Fund mitted by the Plan, within two business shall be made in any one class of shares of days subsequent to the date of such deter- stock of any one corporation which would mination. No participation shall be ad- cause the total number of such shares held mitted or withdrawn unless, in accordance by the Common Trust Fund to exceed 5 with provisions of the Plan, prior to the per cent of the number of such shares outdate of the determination of such valua- standing. If the bank administers more tion, notice of intention to participate or than one Common Trust Fund no investto make such withdrawal shall have been ment shall be made which would cause the given in writing to the bank administer- aggregate investment for all such Common ing the Common Trust Fund, or a written Trust Funds in shares of stock of any one notation of the contemplated participation corporation to exceed such limitation. or withdrawal shall have been made in the Any bank administering a Common records of the bank. Trust Fund shall have the responsibility 504 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

From a Legal Standpoint of maintaining in cash and readily market- tributed ratably in kind it shall be segreable securities 4 such part of the assets of gated and administered or realized upon the Common Trust Fund as shall be deemed for the benefit ratably of all trusts particiby the bank to be necessary to provide ade- pating in the Common Trust Fund at the quately for the needs of participating trusts time of withdrawal. and to prevent inequities between such (8) Management of Common Trust Fund trusts. In any event, prior to any admis- and fees.—A national bank administering sions to or withdrawals from a Common a Common Trust Fund shall have the ex- Trust Fund, the trust investment commit- clusive management thereof and shall not tee shall determine what percentage of the charge a fee for the management of the value of the assets of a Common Trust Common Trust Fund, or receive, either Fund is composed of cash and readily mar- from the Common Trust Fund or from any ketable securities; and if such committee trusts the funds of which are invested in determines that, after effecting the admis- participations therein, any additional fees, sions and withdrawals which are to be commissions, or compensations of any kind made pursuant to notice given as required by reason of such participation. The bank in subdivision (4) of this subsection, less shall not pay a fee, commission, or comthan 40 per cent of the value of the remain- pensation out of the Common Trust Fund ing assets of the Common Trust Fund for management. Nothing in this parawould be composed of cash and readily mar- graph shall be construed as prohibiting a ketable securities, no admissions to or with- bank from reimbursing itself out of a Comdrawals from the Common Trust Fund mon Trust Fund for such reasonable exshall be permitted as of the valuation date penses incurred by it in the administration upon which such determination is made, thereof as would have been chargeable to except that ratable distribution upon all the respective participating trusts if inparticipations is not prohibited. curred in the separate administration of (6) Distribution upon withdrawal of such participating trusts. participation,—When participations are (9) Effect of mistakes.—No mistake withdrawn from a Common Trust Fund made in good faith and in the exercise of distributions may be made in cash or due care in connection with the administraratably in kind, or partly in cash and partly tion of a Common Trust Fund shall be ratably in kind, provided that all distribudeemed to be a violation of this regulation tions as of any one valuation date shall be if promptly after the discovery of the mismade on the same basis. Before any distake the bank takes whatever action may tribution in cash is made, the trust investbe practicable in the circumstances to ment committee shall determine whether remedy the mistake. any investment remaining in the Common Trust Fund would be unlawful for one or (d) Common Trust Funds composed prinmore participating trusts if funds of such cipally of mortgages (Mortgage Investment trusts were being invested at that time; Funds).—Subject to all other provisions of and no distribution shall be made in cash this regulation except subsections (b) and until any such unlawful investment shall (c) of this section,5 funds received or held by have been eliminated from the Common a bank in its capacity as trustee, executor, Trust Fund either through sale, distribu- administrator, or guardian may be invested tion in kind, or segregation as provided in in participations in a Common Trust Fund the subdivision immediately following here- administered pursuant to the provisions of after. this subsection (hereinafter referred to as a "Mortgage Investment Fund"). All admis- (7) Segregation of investments.—If for sions and withdrawals of participations in a any reason an investment is withdrawn in Mortgage Investment Fund shall be made on kind from a Common Trust Fund for the the basis of the actual amount invested by benefit of all trusts participating in the each participant, and, except in final liquida- Common Trust Fund at the time of such tion of a Mortgage Investment Fund, particiwithdrawal and such investment is not dispants therein shall not have an interest in 4 A readily marketable security within the meaning of this sec- reserves accumulated or enhancement in the tion means a security which is the subject of frequent dealings in ready markets with such frequent quotations of price as to make (a) the price easily and definitely ascertainable and (b) the se- 5 Note, however, that certain provisions of subsection (c) are curity itself easy to realize upon by sale at any time. incorporated in this subsection by reference. JUNE 1940 505 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

From a Legal Standpoint value of assets, except such as may be dis- drawn from the Mortgage Investment tributable as income. Fund unless, on the basis of such valuation, the value of the assets of the Mort- (1) Mortgage Investment Fund to be gage Investment Fund, exclusive of acoperated under written plan.—Each Mortcrued income, is at least equal to the amount gage Investment Fund shall be subject to of the outstanding participations. No parthe provisions of subdivision (1) of subticipation shall be admitted or withdrawn section (c) of this section. unless, in accordance with the provisions (2) Trust investment committee to ap- of the Plan, prior to the date of the deterprove participation.—No funds of a trust mination of such valuation, notice of intenshall be invested in a participation in a tion to participate or to make such with- Mortgage Investment Fund without the drawal shall have been given in writing to approval of the trust investment committee. the bank administering the Mortgage In- Before permitting any funds of any trust vestment Fund, or a written notation of to be invested in a participation in a Mort- the contemplated participation or withgage Investment Fund, the trust invest- drawal shall have been made in the records ment committee shall review the assets of the bank. comprising the Mortgage Investment Fund; The real estate securing each obligation and, if it finds that the condition of the contained in a Mortgage Investment Fund Mortgage Investment Fund is such that the and any real estate contained in the Mortfunds of such trust might not lawfully be gage Investment Fund shall be appraised invested in a participation therein at that at least once every three years by two pertime, or that such investment would be sons, one of whom shall not have particicontrary to the provisions of this subsec- pated in the last preceding appraisal of the tion, funds of such trust shall not be so particular property for the purposes of the invested. Mortgage Investment Fund. Such persons At the time of making the first invest- shall be appointed by the bank's board of ment of funds of a trust in any Mortgage directors and shall, in the opinion of the Investment Fund, the bank shall send a board, be familiar with real estate values notice of such investment to each person in the vicinity in which any such real estate to whom a regular periodic accounting is situated and qualified to make such apordinarily would be rendered, except that praisals. The persons appointed shall acsuch notices need not be sent to a court tually inspect such real estate and shall so unless required by the court, and except certify in a written certificate of appraisal, that such notices need not be sent where which shall be filed and preserved in the the trust instrument specifically author- bank's records. izes investments in Mortgage Investment The trust investment committee shall re- Funds. quire more frequent appraisals of all prop- (3) Mortgage Investment Fund to be erties or any particular property if such audited annually.—Each Mortgage Invest- action is deemed by the committee to be ment Fund shall be subject to the provi- necessary to enable it properly to discharge sions of subdivision (3) of subsection (c) the duties imposed upon it by this subsecof this section. tion. (U) Value of assets to be determined (5) Miscellaneous limitations.—No periodically.—Not less frequently than funds of any trust shall be invested in a once during each period of three months, participation in a Mortgage Investment the trust investment committee of a bank Fund if such investment would result in administering a Mortgage Investment such trust's having an interest in the Mort- Fund shall determine the value of the as- gage Investment Fund in excess of the sum sets in the Mortgage Investment Fund. of $1,200 or 2 per cent of the amount of the No participation shall be admitted to or outstanding participations in the Mortgage withdrawn from the Mortgage Investment Investment Fund, whichever is greater at Fund except on the date of determination the time of investment, or in any event in of such valuation or, if permitted by the excess of the sum of $10,000. If the bank Plan, within two business days subsequent administers more than one Mortgage Into the date of such determination; and no vestment Fund, no investment shall be participation shall be admitted to or with- made which would cause any one trust to 506 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

From a Legal Standpoint have an interest in all such Mortgage In- the amount of the admissions and withvestment Funds in excess of the sum of drawals which are to be made as of any $10,000; and, if the bank administers valuation date pursuant to notice given as Funds under both subsections (c) and (d) required in subdivision (4) of this subof this section, no investment shall be made section, the trust investment committee dewhich would cause any one trust to have termines that there will be sufficient cash an interest in all such Funds in excess of in the Mortgage Investment Fund to perthe sum of $25,000. In applying the limi- mit all such withdrawals, no admissions to tations contained in this paragraph, if two or withdrawals from the Mortgage Investor more trusts are created by the same ment Fund shall be permitted as of such settlor or settlors and as much as one-half valuation date. of the income or principal or both of each Unless the trust investment committee trust is payable or applicable to the use of determines that, after effecting the admisthe same person or persons, such trusts sions and withdrawals which are to be shall be considered as one. made as of any valuation date pursuant to No investment for a Mortgage Invest- notice given as required in subdivision (4) ment Fund shall be made in obligations of of this subsection, the amount of investany one person, firm, or corporation which ments of a Mortgage Investment Fund repwould cause the total amount of investment resented by assets in which moneys of the in obligations issued or guaranteed by such Mortgage Investment Fund could not then person, firm, or corporation to exceed 10 be invested under the provisions of subper cent of the amount of the outstanding division (8) of this subsection will not exparticipations in the Mortgage Investment ceed 10 per cent of the amount of the out- Fund, provided that this limitation shall standing participations in the Mortgage not apply to investments in obligations of Investment Fund, no admissions to or withthe United States or for the payment of drawals from the Mortgage Investment the principal and interest of which the faith Fund shall be permitted as of such valuaand credit of the United States shall be tion date. pledged. (6) Reserve account and distribution of The unpaid balance of any obligation income.—In each Mortgage Investment secured by real estate in which the funds Fund the bank shall establish and maintain of a Mortgage Investment Fund are in- a reserve account as part of the principal vested shall not exceed $10,000 on the date thereof, to which, to the extent available, of the investment therein unless the aggre- all realized losses shall be charged. Any gate amount of all outstanding participa- realized gain in the value of assets of a tions in the Mortgage Investment Fund ex- Mortgage Investment Fund, other than inceeds $200,000, in which event the unpaid come, shall be credited to such reserve balance of such obligation shall not exceed account. 5 per cent of the amount of such outstand- At least semiannually a bank adminising participations or $50,000, whichever tering a Mortgage Investment Fund shall amount is less. determine the net income of the Mortgage Any bank administering a Mortgage In- Investment Fund during the period since vestment Fund shall have the responsibility the last determination thereof. At the close of maintaining in cash such part of the of each earning period, if the total amount assets of the Mortgage Investment Fund as contained in such reserve account is less shall be deemed by the bank to be necessary than 10 per cent of the total amount of all to provide adequately for the needs of par- outstanding participations in the Mortgage ticipating trusts and to prevent inequities Investment Fund, the bank shall transfer between such trusts. No investment of the to the reserve account, out of the net inmoneys of a Mortgage Investment Fund come of the Mortgage Investment Fund, shall be made if following such investment such amount as the bank shall determine the cash balance, exclusive of collected in- to be proper under the circumstances. The come on hand, in the Mortgage Investment total amount so to be transferred to the re- Fund would be less than an amount equal serve account during any year shall not be to 5 per cent of the total amount of all out- less than 10 per cent of the amount of the standing participations in the Mortgage gross income of the Mortgage Investment Investment Fund. Unless, upon computing Fund for such year or more than one per JUNE 1940 507 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

From a Legal Standpoint cent of the average of the total amounts the laws of the State in which the bank of all outstanding participations in the is located and are of the kind which might Mortgage Investment Fund at the close of be acquired by a national bank under the each earning period. No such transfers to provisions for making amortized loans the reserve account shall be made which contained in the third sentence of secwill cause the amount contained therein to tion 24 of the Federal Reserve Act; or exceed 10 per cent of the amount of all (C) Obligations secured by real estate outstanding participations. which, at the date of the investment, are The balance of the net income remaining legal for investment of trust funds under after transferring the appropriate part the laws of the State in which the bank thereof, if any, to the reserve account, shall is located, which are payable within 20 thereupon be distributed to the owners of years, and which either provide for semithe outstanding participations in the Mort- annual payments reducing the principal gage Investment Fund in proportion to the thereof annually in an amount equal to amounts of their participations and the at least 5 per cent of the amount of the period of time owned since the previous principal on the date of investment, or determination of net income. provide for the amortization of the total (7) Withdrawal of participation in a unpaid principal amount of such mort- Mortgage Investment Fund.—Upon the gage on the date of investment by equal withdrawal of a participation of any trust monthly payments during the term of prior to termination and final liquidation such mortgage, such monthly payments of a Mortgage Investment Fund, such trust being fixed at an amount which will inshall be entitled to be paid in cash the total clude the interest due on such mortgage amount of the funds of such trust invested on the date of such payments and an adin the participation, with net income there- ditional amount to be applied in the reon to the date of such payment, but such duction of the unpaid principal amount income shall not be paid until the amount of such mortgage. In the case of a rethereof shall have been determined at the newal or extension of any such obligaclose of the current earning period. tion held by a Mortgage Investment Upon the termination and final liquida- Fund, the date upon which the Mortgage tion of a Mortgage Investment Fund, all Investment Fund originally acquired the assets of the Mortgage Investment Fund obligation shall be considered the date of shall be distributed among the owners of investment. the participations at that time in propor- If in the judgment of the trust investtion to the amounts thereof. ment committee such obligations are not (8) Investment of moneys of Mortgage available for investment of moneys of a Investment Funds.—The moneys of a Mort- Mortgage Investment Fund, such moneys gage Investment Fund shall be invested may be invested temporarily in obligations in— of the United States or of the State in (A) Obligations secured by real estate which the bank is located or for the paywhich, at the date of the investment, are ment of the principal and interest of which legal for investment of trust funds under the faith and credit of the United States or the laws of the State in which the bank of such State shall be pledged, and which is located and are insured by the Federal are legal for investment of trust funds Housing Administrator, having been in- under the laws of the State in which the sured prior to the first day of July 1939, bank is located. As soon as obligations pursuant to the provisions of Title II of secured by real estate in which the moneys the National Housing Act, approved the of the Mortgage Investment Fund may be 27th day of June 1934, as amended, or invested are available, such securities shall having been so insured thereafter, with be disposed of and the proceeds invested in like force and effect, pursuant to any such obligations if this can be accomplished revision or extension of the provisions without disadvantage to the Mortgage Inof the said Act; or vestment Fund. (B) Obligations secured by real estate (9) Management of Mortgage Investwhich, at the date of the investment, are ment Fund and fees.—Each Mortgage Inlegal for investment of trust funds under vestment Fund shall be subject to the pro- 508 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

From a Legal Standpoint visions of subdivision (8) of subsection SEC. 2. Executive Order Numbered 8389 of April (c) of this section. 10, 1940, and the regulations and general rulings issued thereunder by the Secretary of the Treasury (10) Effect of mistakes.—Each Mort- are hereby approved and confirmed. gage Investment Fund shall be subject to SEC. 3. Nothing in this Joint Resolution shall be the provisions of subdivision (9) of sub- deemed to repeal or to modify in any manner any of section (c) of this section. the provisions of the Act of April 13, 1934, 48 Stat. 574 (the Johnson Act) or of the Neutrality Act of 1939 (Public Resolution Numbered 54, Seventy-sixth Congress). Approved, May 7, 1940. Authority of the President to Regulate Transactions in Property in Which Foreigners Have an Interest There is set forth below the text of an Executive Order and Regulations on Transfers of Property amendment to section 5(b) of the Act of of Belgium, Luxembourg, and the Netherlands October 6, 1917 (known as the Trading with the Enemy Act), approved May 7,1940. This The Executive Order of April 10,1940, and amendment is intended to remove any doubt the Treasury Regulations issued thereunder as to the authority of the President to regu- on the same day providing that transfers of late transactions in evidences of indebtedness credit, foreign exchange transactions, the exand evidences of ownership of property in port or earmarking of coin, bullion, or curwhich foreigners have an interest, and to re- rency, or other similar operations, by persons quire reports concerning all foreign-owned or institutions in the United States which inproperty. volve Danish or Norwegian property shall be subject to license by the Secretary of the [PUBLIC RESOLUTION—No 69—76TH CONGRESS] Treasury, were amended on May 10, 1940, so as to include property of Belgium, Luxem- [CHAPTER 185—3D SESSION] bourg, and the Netherlands, or any national [S. J. Res. 252] thereof. Applications for licenses shall be filed with the Federal Reserve Banks or, in JOINT RESOLUTION certain circumstances, with persons described To amend section 5 (b) of the Act of October 6, 1917, in the Regulations. as amended, and for other purposes. The amended Regulations also require the Resolved by the Senate and House of Represent- filing of reports by persons and institutions atives of the United States of America in Congress in the United States with respect to all assembled, That the first sentence of subdivision (b) of section 5 of the Act of October 6, 1917 (40 Stat.property of Belgium, Luxembourg, and the 411), as amended, is hereby amended to read as Netherlands, or any national thereof, situfollows: ated in the United States. Such reports shall "During time of war or during any other period of be filed not later than June 10, 1940, with the national emergency declared by the President, the Federal Reserve Banks or, in certain circum- President may, through any agency that he may stances, with persons described in the Regudesignate, or otherwise, investigate, regulate, or prohibit, under such rules and regulations as he may pre- lations. scribe, by means of licenses or otherwise, any trans- The texts of the Executive Order and acactions in foreign exchange, transfers of credit between or payments by or to banking institutions as companying Regulations of April 10 are defined by the President, and export, hoarding, melt- quoted in full on pages 390-393 of the Feding, or earmarking of gold or silver coin or bullion or eral Reserve BULLETIN for May 1940, and currency, and any transfer, withdrawal or exportathe texts of the May 10 amendments are as tion of, or dealing in, any evidences of indebtedness or evidences of ownership of property in which any follows: foreign state or a national or political subdivision thereof, as defined by the President, has any interest, EXECUTIVE ORDER NO. 8405 by any person within the United States or any place subject to the jurisdiction thereof; and the President Amendment of Executive Order No. 8389 of April 10, may require any person to furnish under oath, com- 194-0, Amending Executive Order No. 6560, Dated plete information relative to any transaction referred January 15, 193% to in this subdivision or to any property in which any Executive Order No. 8389 of April 10, 1940, is such foreign state, national or political subdivision amended to read as follows: has any interest, including the production of any books of account, contracts, letters, or other papers, "Amendment of Executive Order No. 6560, Dated in connection therewith in the custody or control of January 15, 1934,, Regulating Transactions in Forsuch person, either before or after such transaction is eign Exchange, Transfers of Credit, and the Excompleted." port of Coin and Currency JUNE 1940 509 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

From a Legal Standpoint "By virtue of the authority vested in me by sec- production of any books of account, contracts, tion 5(b) of the Act of October 6, 1917 (40 Stat. letters or other papers with respect to the mat- 411), as amended, and by virtue of all other author- ters concerning which reports are required to ity vested in me, I, Franklin D. Roosevelt, President be filed under this section. of the United States of America, do hereby amend Executive Order No. 6560, dated January 15, 1934, " 'Section 11. Additional Definitions. In addiregulating transactions in foreign exchange, trans- tion to the definitions contained in section 7, the fers of credit, and the export of coin and currency following definitions are prescribed: by adding the following sections after section 8 thereof: "'A. The terms "Norway" and "Denmark," respectively, mean the State and the Government " 'Section 9. Notwithstanding any of the pro- of Norway and Denmark on April 8, 1940, the visions of sections 1 to 8, inclusive, of this Order, terms "the Netherlands," "Belgium," and "Luxall of the following are prohibited, except as spe- embourg," mean the State and the Government cifically authorized in regulations or licenses issued of the Netherlands, Belgium and Luxembourg on by the Secretary of the Treasury pursuant to this May 10, 1940, and any political subdivisions, Order, if involving property in which Norway or agencies and instrumentalities of any of the Denmark or any national thereof has at any time foregoing, including territories, dependencies on or since April 8, 1940, had any interest of any and possessions, and all persons acting or purnature whatsoever, direct or indirect, or if involv- porting to act directly or indirectly for the benefit ing property in which the Netherlands, Belgium or or on behalf of any of the foregoing. The terms Luxembourg or any national thereof has at any "Norway," "Denmark," "the Netherlands," time on or since May 10, 1940, had any interest "Belgium" and "Luxembourg" respectively, of any nature whatsoever, direct or indirect: shall also include any and all other governments " 'A. All transfers of credit between any bank- (including political subdivisions, agencies, and ing institutions within the United States; and instrumentalities thereof and persons acting or all transfers of credit between any banking purporting to act directly or indirectly for the institution within the United States and any benefit or on behalf thereof) to the extent and banking institution outside the United States only to the extent that such governments exercise (including any principal, agent, home office, or claim to exercise de jure or de facto soverbranch, or correspondent outside of the United eignty over the area which, on April 8, 1940, States, of a banking institution within the constituted Norway and Denmark and which on United States); May 10, 1940, constituted the Netherlands, Bel- " 'B. All payments by or to any banking insti- gium and Luxembourg. tution within the United States; " 'B. The term "national" of Norway or Den- " 'C. All transactions in foreign exchange by mark shall include any person who has been or any person within the United States; whom there is reasonable cause to believe has been domiciled in, or a subject, citizen or resi- " 'D. The export or withdrawal from the dent of Norway or Denmark at any time on or United States, or the earmarking of gold or since April 8, 1940, but shall not include any silver coin or bullion or currency by any person individual domiciled and residing' in the United within the United States; States on April 8, 1940, and shall also include " 'E. All transfers, withdrawals or exporta- any partnership, association, or other organizations of, or dealings in, any evidences of in- tion, including any corporation organized under debtedness or evidences of ownership of prop- the laws of, or which on April 8, 1940, had its erty by any person within the United States; principal place of business in Norway or Denand mark or which on or after such date has been controlled by, or a substantial part of the stock, " *F. Any transaction for the purpose or which has the effect of evading or avoiding the fore- shares, bonds, debentures, or other securities of going prohibitions. which has been owned or controlled by, directly or indirectly, one or more persons, who have been, or whom there is reasonable cause to " 'Section 10. Additional Reports. believe have been, domiciled in, or the subjects, " 'A. Reports under oath shall be filed on such citizens or residents of Norway or Denmark at forms, at such time or times and from time to any time on or since April 8, 1940, and all pertime, and by such persons, as provided in regu- sons acting or purporting to act directly or lations prescribed by the Secretary of the Treas- indirectly for the benefit or on behalf of the ury, with respect to all property of any nature foregoing. whatsoever of which Norway, Denmark, the " 'C. The term "national" of the Netherlands, Netherlands, Belgium or Luxembourg or any Belgium or Luxembourg shall include any pernational thereof is or was the owner, or in which son who has been or whom there is reasonable Norway, Denmark, the Netherlands, Belgium or cause to believe has been domiciled in, or a sub- Luxembourg or any national thereof has or had ject, citizen or resident of the Netherlands, any interest of any nature whatsoever, direct or Belgium or Luxembourg at any time on or since indirect, and with respect to any acquisition, May 10, 1940, but shall not include any inditransfer, disposition, or any other dealing in vidual domiciled and residing in the United such property. States on May 10, 1940, and shall also include " 'B. The Secretary of the Treasury may re- any partnership, association, or other organizaquire the furnishing under oath of additional tion, including any corporation organized under and supplemental information, including the the laws of, or which on May 10, 1940, had its 510 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

From a Legal Standpoint principal place of business in the Netherlands, "(c) The terms 'property' and 'property interest' Belgium or Luxembourg, or which on or after or 'property interests' shall include, but not by way such date has been controlled by, or a substan- of limitation, money, checks, drafts, bullion, bank tial part of the stock, shares, bonds, debentures, deposits, savings accounts, any debts, indebtedness or or other securities of which has been owned or obligations, financial securities commonly dealt in controlled by, directly or indirectly, one or more by bankers, brokers, and investment houses, notes, persons, who have been, or whom there is rea- debentures, stocks, bonds, coupons, bankers' acceptsonable cause to believe have been, domiciled ances, mortgages, pledges, liens or other right in the in, or the subjects, citizens or residents of the nature of security, warehouse receipts, bills of lad- Netherlands, Belgium or Luxembourg, at any ing, trust receipts, bills of sale, any other evidences time on or since May 10, 1940, and all persons of title, ownership or indebtedness, goods, wares, acting or purporting to act directly or indirectly merchandise, chattels, stocks on hand, ships, goods on for the benefit or on behalf of the foregoing. ships, real estate mortgages, vendors' sales agree- "*D. The term "banking institution" as used ments, land contracts, real estate and any interest in section 9 includes any person engaged pri- therein, leaseholds, ground rents, options, negotiable marily or incidentally in the business of banking, instruments, trade acceptances, royalties, book accounts, accounts payable, judgments, patents, tradeof granting or transferring credits, or of purmarks, copyrights, insurance policies, safe deposit chasing or selling foreign exchange or procuring boxes and their contents, annuities, et cetera. purchasers and sellers thereof, as principal or agent, or any person holding credits for others "(d) Safe deposit boxes shall be deemed to be in as a direct or incidental part of his business, or the 'custody' not only of all persons having access brokers; and, each principal, agent, home office, thereto but also of the lessors of such boxes whether branch or correspondent of any person so en- or not such lessors have access to such boxes. The gaged shall be regarded as a separate "banking foregoing shall not in any way be regarded as a institution." limitation upon the meaning of the term 'custody'. "(e) For the meaning of other terms reference " 'Section 12. Additional Regulations. The Regshould be made to the definitions contained in the ulations of November 12, 1934, are hereby modi- Order.* fied insofar as they are inconsistent with the provisions of sections 9 to 11, inclusive, of this "Section 130.3. Licenses to engage in foreign exchange transactions, etc. Applications for licenses to Order, and except as so modified are hereby conengage in foreign exchange transactions, transfers tinued in full force and effect. The Secretary of of credit, payments, the export or withdrawal from the Treasury is authorized and empowered to prethe United States or the earmarking of gold or scribe from time to time regulations to carry out silver coin or bullion or currency, or the transfer, the purposes of sections 9 to 11, inclusive, of this withdrawal or exportation of, or dealing in, any Order as amended, and to provide in such regula- evidences of indebtedness or evidences of ownership tions or by rulings made pursuant thereto, the con- of property, involving property in which Norway or ditions under which licenses may be granted by Denmark or any national thereof has at any time on such agencies as the Secretary of the Treasury or since April 8, 1940, had any interest of any namay designate/ " ture whatsoever, direct or indirect, or in which the FRANKLIN D. ROOSEVELT. Netherlands, Belgium or Luxembourg or any national thereof has at any time on or since May 10,1940, had The White House, any interest of any nature whatsoever, direct or May 10, 1940, 7:55 A. M., E. S. T. indirect, shall be filed in duplicate with the Federal Reserve bank of the district or the Governor or AMENDMENT TO REGULATIONS High Commissioner of the territory or possession The Regulations of April 10, 1940, are amended to of the United States in which the applicant resides read as follows: or has his principal place of business or principal office or agency, or with the Federal Reserve Bank "Regulations of New York if the applicant has no legal residence "Relating to Transactions in Foreign Ex- or principal place of business or principal office or change, Transfers of Credit, Payments, and the agency in a Federal Reserve district or a territory Export or Withdrawal of Coin, Bullion and or possession of the United States. Application Currency, and Transfers, Withdrawals and Ex- forms may be obtained from any Federal Reserve portations of, or Dealings in, Evidences of In- bank, mint or assay office, or the Secretary of the debtedness or Ownership; and to Reports of Treasury, Washington, D. C. Applications shall be Foreign Property Interests in the United executed under oath before an officer authorized to States.* administer oaths, or if executed outside of the United States, before a diplomatic or consular officer "Section 130.1. Authority for regulations. These of the United States. The applicant shall furnish regulations are prescribed and issued under author- such further information as shall be requested of ity of Section 5(b) of the Act of October 6, 1917 him by the Secretary of the Treasury or the Fed- (40 Stat. 411), as amended, and Executive Order eral Reserve bank or other agency at which the appli- No. 6560, dated January 15, 1934, as amended.* cation is filed. Licenses will be issued by the Secretary of the Treasury, acting directly or through "Section 130.2. Definitions. any agencies that he may designate, and by the "(a) The term 'Order' shall refer to Executive Order No. 6560, of January 15, 1934, as amended. •Sections 130.1 to 130.6: Sec 5(b), 40 Stat. 415 and 966; "(b) The term 'regulations' shall refer to these sec. 2, 48 Stat. 1; Public Resolution No. 69, 76th Congress; 12 U. S. C. 95a; Ex. Order 6560, Jan. 15, 1934; Ex. Order 8389, regulations. April 10, 1940; Ex. Order 8405, May 10, 1940. JUNE 1940 511 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

From a Legal Standpoint Federal Reserve banks acting in accordance with thereof having any information with respect to any such rules, regulations, and instructions as the Sec- such property. retary of the Treasury may from time to time pre- "Provided, That no report on Form TFR-100 need scribe, in such cases or classes of cases as the Secbe filed where the total value of all property interretary of the Treasury may determine in rules, reguests to be reported" is less than $250. lations, and instructions prescribed by him. The " (b) Reports shall be executed and filed in tripli- Federal Reserve bank or other agency at which an cate with the Federal Reserve bank of the district application is filed will advise the applicant of the or the Governor or High Commissioner of the terrigranting or denial of the license. Licenses for the tory or possession of the United States in which the export or withdrawal of currency or gold or silver party filing the report resides or has his principal coin or bullion or evidences of indebtedness or eviplace of business or principal office or agency, or dences of ownership of property, after having been if such party has no legal residence or principal cancelled by the collector of customs or the postplace of business or principal office or agency in a master through whom the exportation or withdrawal Federal Reserve district or a territory or possession was made, may be returned by such collector of cusof the United States, then with the Federal Reserve toms or postmaster to the licensee. Appropriate Bank of New York. A report shall be deemed to forms for applications and licenses will be prescribed have been filed when it is received by the proper by the Secretary of the Treasury. Licensees may Federal Reserve bank or other agency or when it be required to file reports upon the consummation is properly addressed and mailed and bears a postof the transactions. The decision of the Secretary mark dated prior to midnight of the date upon which of the Treasury with respect to the approval or the report is due. The Federal Reserve bank and disapproval of an application shall be final.* other agencies shall properly forward two copies of "Section 130.4. Reports of Property Interests of every report filed with it to the Secretary of the Norway, Denmark, the Netherlands, Belgium, Lux- Treasury. embourg and Nationals Thereof, "(c) (1) All spaces in the report must be properly "(a) On or before May 15, 1940, reports shall be filled in. Reports found not to be in proper form, filed on Form TFR-100, duly executed under oath, or lacking in essential details, shall not be deemed containing the information called for in such Form, to have been filed in compliance with the Order. with respect to all property situated in the United "(2) Where space in the report form does not States on April 8, 1940, in which Norway or Den- permit full answers to questions, the information mark or any national thereof has at any time on or required may be set forth in supplementary papers since April 8, 1940, had any interest of any nature incorporated by reference in the report and subwhatsoever, direct or indirect. Within thirty days mitted therewith. Supplementary documents and of the publication of these regulations in the Federal papers must be referred to in the principal state- Register, reports shall be filed on Form TFR-100, ment in chronological or other appropriate order and duly executed under oath, containing the information be described in such manner that they can be called for in such Form, with respect to all property identified. situated in the United States on May 10, 1940, in "(d) A separate report under oath must be filed which the Netherlands, Belgium or Luxembourg or by each person required to file a report except that any national thereof has at any time on or since persons holding property jointly may file a joint May 10, 1940, had any interest of any nature what- report. soever, direct or indirect. Such reports shall be "(e) The Secretary of the Treasury may, in his filed by: discretion, grant such extensions of time as he deems "(1) Every person in the United States directly advisable for the making of any or all of the reports or indirectly holding, or having title to, or custody, required by these regulations. control, or possession of such property including, " (f) Report Form TFR-100 may be obtained from without any limitation whatsoever of the fore- any Federal Reserve bank, mint or assay office and going, every partnership, association, or corpora- the Secretary of the Treasury, Washington, D. C* tion organized under the laws of the United States "Section 130.5. Penalties. Section 5(b) of the Act or any state or territory of the United States or of October 6, 1917, as amended by Section 2 of the having its principal place of business in the United Act of March 9, 1933, provides in part: States, in the shares of whose stock or in whose debentures, notes, bonds, coupons, or other obliga- " '* * * Whoever willfully violates any of the tions or securities Norway or Denmark or any provisions of this subdivision or of any license, national thereof has at any time on or since April order, rule or regulation issued thereunder, shall, 8,1940, had any interest of any nature whatsoever, upon conviction, be fined not more than $10,000, direct or indirect, or in which the Netherlands, or, if a natural person, may be imprisoned for not Belgium, or Luxembourg or any national thereof more than ten years, or both; and any officer, has at any time on or since May 10, 1940, had any director, or agent of any corporation who knowinterest of any nature whatsoever, direct or indi- ingly participates in such violation may be punrect; and ished by a like fine, imprisonment, or both. As used in this subdivision the term 'person* means an "(2) Every agent or representative in the individual, partnership, association, or corpora- United States for Norway, Denmark, the Netherlands, Belgium or Luxembourg or any national tion.' * •Sec. 5(b), 40 Stat. 415 and 966; Sec. 2, 48 Stat. 1; Public •Sec. 5(b), 40 Stat. 415 and 966; Sec. 2, 48 Stat. 1; Public Resolution No. 69, 76th Congress ; 12 U. S. C. 95a; Ex. Order Resolution No. 69, 76th Congress ; 12 U. S. C. 95a; Ex. Order 6560, Jan. 15, 1934; Ex. Order 8389, April 10, 1940; Ex. Order 6560, Jan. 15, 1934; Ex. Order 8389, April 10, 1940; Ex. Order 8405, May 10, 1940; Regulations, April 10, 1940, as amended 8405, May 10, 1940; Regulations, April 10, 1940, as amended May 10, 1940. May 10, 1940. 512 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

From a Legal Standpoint "Section 130.6. Modification or Revocation. These The Treasury Department construes the Executive regulations and any Forms or instructions issued Order and Regulations as prohibiting such transachereunder may be modified or revoked at any time." * tions, except under license. HENRY MORGENTHAU, JR., H. MORGENTHAU, JR., Secretary of the Treasury. Secretary of the Treasury. Approved: May 10, 1940, 7:55 A. M., E. S. T. Dated April 19, 1940. FRANKLIN D. ROOSEVELT. Treasury Department, Office of the Secretary April 30, 1940. General Rulings and General Licenses Issued By General License No. 1, Under Executive Order No. Secretary of the Treasury 8389, April 10, 191*0, and Regulations Issued Pursuant Thereto, Relating to Transactions in Foreign The following General Rulings and General Exchange, Etc.-f Licenses have been issued by the Secretary of A general license is hereby granted authorizing the Treasury under authority of the Execu- payments and transfers of credit to accounts in tive Order of April 10,1940, as amended, and banking institutions within the United States in Regulations issued pursuant thereto, relating which Norway or Denmark or a national thereof has a property interest within the meaning of the Executo transactions in foreign exchange, etc.: tive Order of April 10, 1940 and the Regulations General Ruling No. 1 Under Executive Order No. issued thereunder; provided that the payments or 8389, April 10, 191*0, and Regulations Issued Purt-ransfers of credit are not made from accounts in suant Thereto, Relating to Transactions in Foreign which Norway or Denmark or a national thereof has Exchange, Etc. a property interest within the meaning of such Order and Regulations. The Secretary of State has advised me as follows: D. W. BELL, Acting Secretary of the Treasury. "Denmark and Iceland are two separate political entities. Acting under the authority of a provision Treasury Department, Office of the Secretary, of the Icelandic Constitution the Icelandic Parliament has within the past few days passed a resolution May 10,1940 stating that since the King of Iceland is not now in Amendment to General License No. 1 Under Execua position to carry out his Constitutional duties with tive Order No. 8389, April 10, 191*0, as Amended, respect to Iceland, the Icelandic Government has and Regulations Issued Pursuant Thereto, Relatassumed for the time being the exercise of the Royal ing to Transactions in Foreign Exchange, Etc.* prerogatives and the entire control of Icelandic foreign relations. General License No. 1 is hereby amended to read as follows: "In view of the foregoing it would not appear that Iceland falls within the definition of the term 'Den- "A general license is hereby granted authorizing mark' in Section 11 of the above-mentioned Executive payments and transfers of credit to accounts in bank- Order." ing institutions within the United States in which Norway, Denmark, the Netherlands, Belgium, or In view of the foregoing, the Treasury Depart- Luxembourg, or a national thereof has a property ment construes the term "Denmark" as used in the interest within the meaning of the Executive Order above-mentioned Executive Order and Regulations of April 10, 1940, as amended, and the Regulations as not applying to Iceland. issued thereunder; provided that the payments or H. MORGENTHAU, JR., transfers of credit are not made from accounts in Secretary of the Treasury. which Norway, Denmark, the Netherlands, Belgium or Luxembourg or a national thereof has a property Dated April 15, 1940. interest within the meaning of such Order and Regulations." General Ruling No. 2 Under Executive Order No. HERBERT E. GASTON, 8389, April 10, 191*0, and Regulations Issued Pur- Acting Secretary of the Treasury. suant Thereto, Relating to Transactions in Foreign Exchange, Etc. Treasury Department, Office of the Secretary, Inquiry has been made as to whether the following May 10, 1940 are prohibited by the Executive Order and the Regulations issued thereunder except under license: General License No. 2 Under Executive Order No. 8389, April 10, 191*0, as Amended, and Regulations (a) The transfer by a banking institution within Issued Pursuant Thereto, Relating to Transactions the United States of stock certificates from or into in Foreign Exchange, Etc.* the names of "nationals" of Norway or Denmark; and t Sec. 5(b), 40 Stat. 415 and 966; Sec. 2, 48 Stat. 1; 12 (b) The delivery out of custody accounts or the U. S. C 95a; Ex. Order 6560, Jan. 15, 1934; Ex. Order 8389, April 10, 1940 ; Regulations, April 10, 1940. receipt in custody accounts, by a banking institution •Sec. 5(b), 40 Stat. 415 and 966; Sec. 2, 48 Stat. 1; Public within the United States, of securities held or to Resolution No. 69, 76th Congress ; 12 U. S. C. 95a; Ex. Order be held in custody for "nationals" of Norway or 6560, Jan. 15, 1934; Ex. Order 8389, April 10, 1940; Ex. Order 8405, May 10, 1940; Regulations, April 10, 1940, as amended, Denmark. May 10, 1940. JUNE 1940 513 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Front a Legal Standpoint A general license is hereby granted authorizing of April 10, 1940, as amended, and the Regbanking institutions within the United States to ulations issued thereunder, under instrucdebit accounts with such banking institutions in tions issued prior to May 10, 1940. which Norway, Denmark, the Netherlands, Belgium HERBERT E. GASTON, or Luxembourg or a national thereof has a prop- Acting Secretary of the Treasury. erty interest within the meaning of the Executive Order of April 10, 1940, as amended, and the Regu- Treasury Department, Office of the Secretary, lations issued thereunder, in payment or reimbursement for (a) interest due to such banking institu- May 10, 1940 tions, (b) cable, telegraph or telephone charges, or General License No. U Under Executive Order No. postage costs, (c) custody fees and service charges, 8389, April 10, 19U0, as Amended, and Regulations and (d) protest fees, provided that all banking Issued Pursuant Thereto, Relating to Transactions institutions making any such debits shall file in Foreign Exchange, Etc.* promptly with the appropriate Federal Reserve bank weekly reports showing the details of such debits. A general license is hereby granted authorizing the bona fide purchase and sale of securities by HERBERT E. GASTON, banking institutions within the United States, for Acting Secretary of the Treasury. the account of nationals of Norway, Denmark, the Netherlands, Belgium or Luxembourg within the Treasury Department, Office of the Secretary, meaning of the Executive Order of April 10, 1940, May 10, 1940 as amended, and the Regulations issued thereunder, pursuant to the instructions of such nationals, and General License No. 3 Under Executive Order No. the making and receipt of payment for and the trans- 8389, April 10,191*0, as Amended, and Regulations fer of such securities, provided that: Issued Pursuant Thereto, Relating to Transactions in Foreign Exchange, Etc.* (a) in the case of the purchase of securities the securities purchased are held in an account A general license is hereby granted authorizing in a banking institution within the United banking institutions within the United States: States in the name of the national of Nor- (a) to make payments from accounts in which way, Denmark, the Netherlands, Belgium Norway or Denmark or a national thereof or Luxembourg whose account was debited has a property interest within the meaning to purchase such securities, and of the Executive Order of April 10, 1940, (b) in the case of the sale of securities the as amended, and the Regulations issued proceeds of the sale are credited to an acthereunder, of checks, drafts, and other pay- count in a banking institution within the ment orders drawn or issued prior to April United States in the name of the national 8, 1940, and to accept and pay and debit to of Norway, Denmark, the Netherlands, Belsuch accounts drafts drawn prior to April 8, gium or Luxembourg for whose account the 1940, under letters of credit, and sale was made. (b) to effect transfers of credit or payments between accounts in banking institutions Each banking institution making such a purchase within the United States in which Norway or sale is required to file promptly with the approor Denmark or a national thereof has a priate Federal Reserve bank weekly reports showing property interest within the meaning of the the details of the transactions, including a descrip- Executive Order of April 10, 1940, as tion of the securities purchased or sold, of the peramended, and the Regulations issued there- son for whose account the purchase or sale was under, under instructions issued prior to made, and the price at which the purchase or sale April 8, 1940, was made. (c) to make payments from accounts in which HERBERT E. GASTON, the Netherlands, Belgium or Luxembourg Acting Secretary of the Treasury. or a national thereof has a property interest within the meaning of the Executive Order Treasury Department, Office of the Secretary, of April 10, 1940, as amended, and the Reg- May 10, 1940 ulations issued thereunder, of checks, drafts, and other payment orders drawn or issued General License No. 5, Under Executive Order No. prior to May 10, 1940, and to accept and 8389, April 10, 1940, as Amended, and Regulations pay and debit to such accounts drafts drawn Issued Pursuant Thereto, Relating to Transactions prior to May 10, 1940, under letters of in Foreign Exchange, Etc.* credit, and A general license is hereby granted authorizing (d) to effect transfers of credit or payments the payment to the United States and agencies and between accounts in banking institutions instrumentalities thereof of taxes, fees, charges, and within the United States in which the other items payable to the United States and agencies Netherlands, Belgium or Luxembourg or and instrumentalities thereof from accounts in which a national thereof has a property interest Norway, Denmark, the Netherlands, Belgium or within the meaning of the Executive Order Luxembourg or a national thereof has a property interest within the meaning of the Executive Order of April 10, 1940, as amended, and the Regulations •Sec. 5(b), 40 Stat. 415 and 966; Sec. 2, 48 Stat. 1; Public Resolution No. 69, 76th Congress; 12 U. S. C. 95a; Ex. Order issued thereunder. 6560, Jan. 15, 1934; Ex. Order 8389, April 10, 1940; Ex. Order HERBERT E. GASTON, 8405, May 10, 1940; Regulations, April 10, 1940, as amended Acting Secretary of the Treasury. May 10, 1940. 514 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

From a Legal Standpoint Treasury Department, Office of the Secretary, Order of April 10, 1940, as amended, and the Reg- May 13, 1940 ulations issued thereunder, pursuant to the instructions of such nationals, and necessary transfers of General License No. 6 Under Executive Order No. credit and payments between accounts in banking 8389, April 10, 1940, as Amended, and Regulations institutions within the United States as required in Issued Pursuant Thereto, Relating to Transactions connection with such purchases or sales or because in Foreign Exchange, Etc.* of fluctuation in the market value of the commodities A general license is hereby granted authorizing covered by such contracts or evidences of ownership, all payments, transfers and withdrawals from ac- provided that: counts of the Government of the Netherlands. (a) in the case of the purchase of commodities H. MORGENTHAU, JR., futures contracts or evidences of ownership of Secretary of the Treasury. actual commodities, the contracts or evidences of ownership purchased are held in an account in a Treasury Department, Office of the Secretary, banking institution within the United States in the name of the national of Norway, Denmark, the May 13,1940 Netherlands, Belgium or Luxembourg, whose ac- General License No. 7 Under Executive Order No. count was debited in connection with such purchase. 8389, April 10, 1940, as Amended, and Regulations (b) in the case of the sale of commodities fu- Issued Pursuant Thereto, Relating to Transactions tures contracts or evidences of ownership of actual in Foreign Exchange, Etc.* commodities, the proceeds of the sale are credited to A general license is hereby granted authorizing an account in a banking institution within the all payments, transfers and withdrawals from ac- United States in the name of the national of Norcounts of the Government of Belgium and the Banque way, Denmark, the Netherlands, Belgium or Lux- Nationale de Belgique. embourg for whose account the sale was made. H. MORGENTHAU, JR., Each banking institution making such a purchase Secretary of the Treasury. or sale is required to file promptly with the appropriate Federal Reserve bank weekly reports showing Treasury Department, Office of the Secretary, the details of the transactions including a descrip- May 13, 1940 tion of the commodities futures contracts or evidences of ownership of actual commodities purchased General License No. 8 Under Executive Order No. or sold, of the person for whose account the purchase 8389, April 10, 1940, as Amended, and Regulations or sale was made, and the price at which the purchase Issued Pursuant Thereto, Relating to Transactions or sale was made. in Foreign Exchange, Etc.* HERBERT E. GASTON, A general license is hereby granted authorizing Acting Secretary of the Treasury. banking institutions within the United States to make all payments, transfers and withdrawals from Treasury Department, Office of the Secretary, accounts in the name of any of the following: May 14, 1940 Javasche Bank, Nederlandsche Handel-Maatschappij, Nederlandsch Indische Handelsbank and Neder- General License No. 10 Under Executive Order No. landsch-Indische Escompto Maatschappij. 8389, April 10,1940, as Amended, and Regulations Banking institutions within the United States Issued Pursuant Thereto, Relating to Transactions making such payments, transfers, or withdrawals in Foreign Exchange, Etc.* shall file promptly with the appropriate Federal A general license is hereby granted authorizing Reserve bank weekly reports showing the details of banking institutions within the United States to the transactions during such period. make make all payments, transfers and withdrawals H. MORGENTHAU, JR., from accounts in the name of the Banque Beige Secretary of the Treasury. pour PEtranger, Overseas, Ltd., including its New York agency, the Banque Beige pour PEtranger in Treasury Department, Office of the Secretary, Paris, the Banque Beige pour PEtranger et Internationale in Egypt, the Banque Italo-Belge in Argen- May 14, 1940 tine, the Banque Beige pour PEtranger in the Far General License No. 9 Under Executive Order No. East, and the Banque du Congo Beige. 8389, April 10, 1940, as Amended, and Regulations Banking institutions within the United States mak- Issued Pursuant Thereto, Relating to Transactions ing such payments, transfers, or withdrawals shall in Foreign Exchange, Etc.* file promptly with the appropriate Federal Reserve bank weekly reports showing the details of the trans- A general license is hereby granted authorizing actions during such period. the bona fide purchase and sale of commodities futures contracts and of evidences of ownership of HERBERT E. GASTON, actual commodities by banking institutions within Acting Secretary of the Treasury. the United States, for the account of nationals of Norway, Denmark, the Netherlands, Belgium or Treasury Department, Office of the Secretary, Luxembourg, within the meaning of the Executive May 15, 1940 * Sec. 5(b), 40 Stat. 415 and 966; Sec. 2, 48 Stat. 1; Public General License No. 11 Under Executive Order No. Resolution No. 69, 76th Congress; 12 U. S. C. 95a; Ex. Order 8389, April 10, 1940, as Amended, and Regulations 6560, Jan. 15, 1934; Ex. Order 8389, April 10, 1940; Ex. Order Issued Pursuant Thereto, Relating to Transactions 8405, May 10, 1940; Regulations, April 10, 1940, as amended May 10, 1940. in Foreign Exchange, Etc.* JUNE 1940 515 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

From a Legal Standpoint A general license is hereby granted authorizing (1) Such access shall be permitted only in the payments and transfers of credit in the United States presence of an authorized representative of the lessor from accounts in banking institutions within the of such box; United States in which a national of Norway, Den- (2) In the event that any money or evidences of mark, the Netherlands, Belgium or Luxembourg has indebtedness or evidences of ownership of property a property interest within the meaning of the Execu- are to be removed from such box, such access shall tive Order of April 10, 1940, as amended, and the be permitted only in the presence of an authorized Regulations issued thereunder, to or upon the order representative of a banking institution within the of the person in whose name the account is held, United States, which may be the lessor of such box, provided that (a) the banking institution making any which receives into its custody immediately upon resuch payments or transfers of credit satisfies itself moval from such box the money or evidences of inthat such payments and transfers of credit are needed debtedness or evidences of ownership of property refor living, traveling and similar personal expenses moved from such box and which holds the same subin the United States, (b) such payments and trans- ject to the Executive Order of April 10, 1940, as fers of credit by such banking institution do not amended, and the Regulations issued thereunder, for exceed $500 in any one month to or for the account the account of the lessee of such box and subject to of any one depositor, and (c) each banking institu- the property interests therein as of April 8, 1940, of tion making any such payments or transfers of credit Norway or Denmark or any national thereof, or subshall file promptly with the appropriate Federal Re- ject to the property interests therein as of May 10, serve bank monthly reports showing the details of 1940, of the Netherlands, Belgium or Luxembourg or any national thereof; such payments and transfers of credit. (3) In the event that any money or evidences of D. W. BELL, indebtedness or evidences of ownership of property Acting Secretary of the Treasury. are removed from such box the banking institution which receives into its custody any money or evi- Treasury Department, Office of the Secretary, dences of indebtedness or evidences of ownership of property removed from such box shall file promptly May 16, 1940 with the appropriate Federal Reserve bank a report Revocation of General License No. 6 Under Executive showing the details of the transactions; and Order No. 8389, April 10, 19 UO, as Amended, and (4) The lessee of such box or other person granted Regulations Issued Pursuant Thereto, Relating to access to such box shall furnish to the lessor of such Transactions in Foreign Exchange, Etc.* box a certificate in triplicate, one copy of which shall be executed under oath, that he has filed or will General License No. 6 authorizing all payments, promptly file a report on Form TFR-100 with respect transfers and withdrawals from accounts of the Govto such box and the contents thereof; and the lessor ernment of the Netherlands is hereby revoked. of such box shall deliver the sworn copy of such certi- H. MORGENTHAU, JR., ficate, and one conformed copy thereof, to the appro- Secretary of the Treasury. priate Federal Reserve bank. D. W. BELL, Acting Secretary of the Treasury. Treasury Department, Office of the Secretary, May 20, 1940 General License No. 12 Under Executive Order No. 8389, April 10, 19%O, as Amended, and Regulations Financial Transactions Under Neutrality Act of 1939 Issued Pursuant Thereto, Relating to Transactions in Foreign Exchange, Etc.* The President of the United States on May 11, 1940, issued a proclamation under au- A general license is hereby granted authorizing thority of section 1 (a) of the Neutrality Act access to safe deposit boxes leased by Norway, Denmark, the Netherlands, Belgium or Luxembourg or a of 1939 (Pub. Res. No. 54, 76th Cong.), apnational thereof within the meaning of the Executive proved November 4, 1939, proclaiming that a Order of April 10, 1940, as amended, and the Regu- state of war exists between Germany, on the lations issued thereunder, or containing property in one hand, and Belgium, Luxembourg, and the which any of the foregoing has an interest of any nature whatsoever, direct or indirect, and the deposit Netherlands, on the other hand. Section 7 therein or removal therefrom of any property, but of the Neutrality Act of 1939, with respect to in each case only on the following terms and con- financial transactions by persons within the ditions : United States relating to countries named in * Sec. 5(b), 40 Stat. 415 and 966; Sec. 2, 48 Stat. 1; Public the Presidential proclamation, is quoted in Eesolution No. 69, 76th Congress ; 12 U. S. C. 95a; Ex. Order 6560, Jan. 15, 1934; Ex. Order 8389, April 10, 1940; Ex. Order full on page 1054 of the Federal Reserve 8405, May 10, 1940; Regulations, April 10, 1940, as amended BULLETIN for December 1939. May 10, 1940. 516 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Untet-Tfmetican Hank The convention for the establishment of visory Committee that the Government of the United the Inter-American Bank was signed on be- States is prepared to sign a proposed convention for the establishment of an Inter-American Bank. The half of the United States by the Under- Inter-American Financial and Economic Advisory secretary of State, the Honorable Sumner Committee on April 16 approved a resolution adopt- Welles, on May 10, 1940 at the Pan American ing definitive texts of convention, charter and by-laws Union in Washington. Representatives of for the establishment of such bank, fixed May 10, 1940 as the date for the signature of the convention, Colombia, the Dominican Republic, Ecuador and requested the nomination of plenipotentiaries for Mexico, Nicaragua, Paraguay, and Bolivia, the purpose. also signed the convention on May 10, and it The Secretary of State has announced that the was signed by a representative of Brazil on convention in its definitive text as adopted by the May 13. Inter-American Committee on April 16 will be signed on behalf of the United States by the Undersecre- Ratification of the convention by all these tary of State, The Honorable Sumner Welles, on countries would insure sufficient participation Friday, May 10, at noon at the Pan American Union. to bring the convention into effect, since these nine countries represent a minimum of 205 History of the Project shares in the Bank, and Article VI of the con- The present project for the establishment of an vention provides that it shall come into effect Inter-American Bank is the result of several months between the ratifying parties when it has of intensive work in the Inter-American Financial been ratified by at least five countries who and Economic Advisory Committee and is the outcome of many years of discussion of the desirability have agreed to subscribe for at least 145 of creating such an institution. The first Internashares. tional Conference of American States discussed the Ratification of the convention by the United matter of providing adequate inter-American banking facilities, and on April 14, 1890 adopted a reso- States will depend on the advice and consent lution recommending that the governments grant of the United States Senate by a two-thirds liberal concessions to facilitate inter-American bankvote. In addition, since the proposed Bank ing and especially such as might be necessary for the would be set up under a charter granted by establishment of an International American Bank. This resolution was approved by a vote of fourteen to the United States, the Department of State zero, Argentina, Bolivia, Brazil, Chile, Colombia, has indicated that Congress will be requested Costa Rica, Guatemala, Honduras, Mexico, Nicato issue such a charter in accordance with ragua, Paraguay, Peru, the United States and Venethe convention. zuela all indicating their concurrence. The Secretary of State, James G. Blaine, in transmitting the reso- There are set forth below a statement which lution to President Harrison indicated his approval was released to the press with respect to the of passage of a law by the United States incorpo- Bank by the Department of State on May 9, rating such an International American Bank, and President Harrison transmitted the resolution and 1940, and also the relevant documents relatletter of Secretary Blaine to the Congress for approing to the Bank, i.e., the convention, and the priate action. proposed charter and by-laws. The second International Conference of American States on January 21, 1902 recommended that a powerful Inter-American Bank be set up in New DEPARTMENT OF STATE York, Chicago, San Francisco, New Orleans, Buenos May 9, 1940 Aires, or any other important mercantile center and that it be assisted in every manner compatible with THE INTER-AMERICAN BANK the internal legislation of each of the American re- The Secretary of State in a letter dated March 13, publics. This resolution was signed by Argentina, 1940 (press release no. Ill) informed the Chairman Bolivia, Colombia, Costa Rica, the Dominican Repubof the Inter-American Financial and Economic Ad- lic, Ecuador, El Salvador, Guatemala,- Haiti, Hon- JUNE 1940 517 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Inter-American Bank duras, Mexico, Nicaragua, Paraguay, Peru, the The Bank, generally speaking, is designed to pro- United States and Uruguay. mote the fuller exploitation of the natural resources The provision of inter-American banking facilities, of the Americas, to intensify economic and financial especially in view of the dislocations occasioned by relations among the American republics, and to the European war, was discussed at length at the mobilize for the solution of economic problems the first Pan American Financial Conference which met best thought and experience in the Americas. The from May 24 to 29, 1915. purposes of the Bank are enumerated in more detail In 1933 the Seventh International Conference of in Section 5 A of the by-laws. American States, upon the initiative especially of the delegations of Peru and Uruguay, unanimously Organization of the Bank adopted a resolution recommending the creation of an Inter-American Bank to establish and promote The charter and Sections 2 and 3 of the by-laws inter-American credit and the interchange of capital, provide in considerable detail for the organization of to collaborate in the reconstruction of national mon- the proposed Bank. The Bank is to be an intergovetary conditions, and to perform such other tasks as ernmental organization. All of the shares are to be the Third Pan American Financial Conference might subscribed by governments of the American repubentrust to it. The Third Pan American Financial lics, and none of the shares may pass to others than Conference did not take place, and the Eighth In- governments of the American republics. The miniternational Conference of American States in 1938 mum number of shares to be subscribed by each of considered a number of resolutions which had been the American republics in order to participate in the presented to the Seventh Conference and to the Inter- Bank is specified in Section 2 B of the by-laws; this American Conference for the Maintenance of Peace. schedule is based upon the foreign trade of each of It resolved to request the Pan American Union to the American republics in the year 1938. According study the possibilities of establishing an organiza- to this schedule the United States is in Group H tion to carry out the purposes envisaged. with Argentina and Brazil; the members of this group are required to subscribe to a minimum of fifty In 1939 the Meeting of the Foreign Ministers of shares, or $5,000,000 each. The liability of sharethe American Republics at Panama adopted a reso- holding governments on their shares is limited to the lution creating the Inter-American Financial and issue price thereof. Economic Advisory Committee to study, among other Voting among participating nations is distributed things, the need, form and conditions for the estabas follows, in accordance with Section 2 H of the bylishment of an inter-American banking institution. laws : twenty votes for each government for its mini- Later in the same year the First Meeting of Finance mum shares, and one vote for each additional share Ministers of the American Republics at Guatemala which it may subscribe. Important decisions require recommended to the urgent attention of the Intera four-fifths vote. It is thus possible that one or American Financial and Economic Advisory Commore governments may acquire sufficient shares to mittee a study of the desirability of creating such a possess more than twenty per cent of the total vote Bank. and thus be able to exercice a veto power on impor- The Inter-American Financial and Economic Ad- tant decisions. visory Committee began its work in Washington on The directors of the Bank are all to be appointed November 15, 1939, and immediately turned its at- by the shareholding governments, and are to be tention to the matter of an Inter-American Bank. responsible to them alone. Generally speaking, more- After several months of intensive effort in which the over, the Bank may take no action which may affect delegates representing the twenty-one American re- a particular nation until after that nation has been publics were assisted by a group of experts from the given an opportunity to object to, or to give its con- United States Departments of State and Treasury, sent, approval or guarantee to the operation. This the Board of Governors of the Federal Reserve Sys- safeguard of the interests of individual nations is tem, and the Federal Loan Agency, the Inter-Ameri- inherent in the entire plan, and appears throughout can Committee on February 7 adopted a resolution the drafting. In addition, it is specifically provided recommending to the governments of the American in Section 5 C that: republics the establishment of such a bank, and submitted for their consideration drafts of a convention, "The operations of the Bank shall at all times be charter and by-laws for its establishment. Com- conducted in conformity with the laws of the terriments and suggestions were received from a number tory where the Bank is acting and, so far as posof the governments and were carefully studied, and sible, be conducted in conformity with the policies on April 16 the Inter-American Committee approved of the participating government directly conthe final texts mentioned above. cerned." United States participation in the establishment of Motives for and purposes of the proposed Bank the Bank The establishment of an Inter-American Bank The appropriate convention will be signed on behalf would be a step of major importance in the develop- of the United States on May 10, 1940. Ratification ment of inter-American financial and economic co- of this convention by the United States will of course operation and the economic implementation of the depend on the advice and consent of the United States Good Neighbor policy. It has been apparent for Senate by a two-thirds vote. In addition, since the some time that there has existed a wide zone of eco- proposed Bank would be set up under a federal charnomic and financial activity among the American ter granted by the United States, Congress will in republics for which the existing machinery of co- accordance with the convention be requested to issue operation has been inadequate. such a charter. Moreover, certain additional legis- 518 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Inter-American Bank lation will be necessary in order to permit the partici- indicated no objection without being liable to subpation of this Government in the Bank. Specifically, sequent unilateral action against the Bank by any the United States must subscribe to at least the mini- of the governments. Special care has been taken in mum number of shares required for participation by the drafting to concede such rights, privileges, ima country in Group H. Consideration of all these munities and exemptions which are essential to the matters in the Senate and the House of Represent- proper functioning of the Bank without permitting atives will provide ample opportunity for a full dis- abuses to occur. Thus Article II, A and D of the cussion of the proposal. convention permits legal action in regard to ad- Section 4 of the proposed charter provides that the judicated claims against the Bank and its depositors. Similarly, Article II, C specifically excludes general Bank shall have succession for a period of twenty non-discriminatory taxation, such as income taxation, years, which may be extended, or until such earlier upon individuals dealing with the Bank from any tax time as it shall be lawfully dissolved, in accordance exemption accorded by the convention. Moreover, with the terms of the by-laws, and that the United Article II, B assures the Bank that, where exchange States agrees not to repeal or amend the charter exrestrictions or controls exist, it shall be accorded cept upon the request of the Bank pursuant to a facilities for transferring out from a country, on four-fifths majority vote of the Board of Directors of the most favorable basis, amortization, interest, and the Bank. This charter and the by-laws of the other returns only from loans and investments of proposed institution are to be annexed to the convenfunds to which the government concerned had not tion and to be integral parts of it. It is obviously previously made the timely objection which it is not feasible to permit one party to an international privileged to make. convention ratified in each country according to its constitutional procedure to be free to change an integral part of the convention without the agreement CONVENTION of all of the other parties thereto. FOR THE ESTABLISHMENT OF AN INTER-AMERICAN BANK Powers of the Bank Pan American Union, Washington, D. C, April 17, The powers with which it is proposed to endow the 1940 projected institution are specified in Section 5 B of the by-laws. In general it may be said that the Bank The Governments of the American Republics is given rather broad powers, subject to restrictions which will be mentioned immediately below, to en- CONSIDERING gage in all usual banking operations. In keeping with the intergovernmental character of the institu- First, that economic and financial cooperation tion, it is specified that all extensions of credit by the among the American Republics is an essential factor Bank, either direct or indirect, must be to a partici- in fostering the welfare of and maintaining solidarity among these Republics; pating government or to a fiscal agency, central bank, political subdivision or national of a participating Second, that such cooperation would be greatly government with the guarantee of that government, facilitated by the establishment of an Inter-American or, in the case of extensions of credit having a Bank; maturity not exceeding two years to any such fiscal have resolved to conclude a Convention as follows: agency, central bank, political subdivision or national, only if the government thereof does not make a Article I timely objection. In this way, and in accordance with the provisions of Section 5 C of the by-laws, which The High Contracting Parties agree to the creawas quoted above, special care has been taken to tion of an institution to be known as the "Interensure to each country the ability to bar any activ- American Bank" for the purposes and with the ity of the Bank within its territory which such powers stated in the proposed Charter and By-Laws country may deem undesirable. annexed hereto. The High Contracting Parties agree While the purposes and powers of the projected that the Bank shall be accorded the powers, rights Bank have been stated in fairly broad and elastic and privileges to engage in the various activities, terms, as is both customary and essential in the transactions and operations envisaged in such Charorganic laws of such institutions, discussions during ter and By-Laws and further agree to enact any the drafting of the convention and by-laws indicated legislation and to take any other action necessary to that it was the intention of the Inter-American effectuate and protect such powers, rights and privi- Financial and Economic Advisory Committee to leges to the Bank. The United States of America complement existing financial institutions rather also agrees to grant to the Bank a Charter substanthan to provide a substitute for them. tially in accordance with the proposed Charter annexed hereto. Each High Contracting Party hereby agrees to subscribe for the minimum number of Rights, privileges, immunities and exemptions shares required of such Party for participation in granted to the Bank the Bank as provided in the annexed By-Laws. In view of the intergovernmental character of the Bank, arising especially from the fact that all the Article II participants are sovereign governments, Article II of the convention would grant to the proposed Bank The High Contracting Parties grant, within their certain rights, privileges, immunities and exemp- respective territories, in time of peace or war and tions which would permit the Bank to carry on any in any period of emergency and in any other situaoperations to which the governments concerned have tion, the rights, privileges, immunities and exemp- JUNE 1940 519 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Inter-American Bank tions enumerated in this Article; and agree also to limitation of the foregoing, excises, duties and imenact any legislation and to take any other action posts; provided, however, that the foregoing shall necessary to effectuate and protect such rights, privi- not be construed as preventing the imposition by leges, immunities and exemptions. a High Contracting Party or any political subdivision thereof of non-discriminatory taxes upon A. The Bank, its assets, obligations to it and nationals of such High Contracting Party with its real and personal property of whatsoever na- respect to any of the foregoing. Notwithstanding ture, including any property deposited with it on any of the foregoing, neither a High Contracting a custody basis or otherwise, shall wheresoever Party nor any political subdivision thereof shall located and by whomsoever held, be exempt and impose any tax on or measured by salaries or immune from (1) requisition, seizure, attachment, remunerations paid by the Bank to its officers or execution, confiscation, moratoria and expropria- employees who are citizens of any other High Contion; (2) prohibitions, restrictions, regulations and tracting Party. Nothing in this paragraph shall controls of withdrawal, transfer, or export; and make the Bank or any other party referred to (3) currency, monetary, exchange and debt regula- above exempt or immune from any customs duties tion and control, by the High Contracting Parties or imposts or other taxation imposed on or in or any political subdivision thereof, whether or connection with the importation or exportation of not compensation is offered; provided, however, any article; provided, however, that the exporthat nothing in this paragraph shall prevent a High tation of (1) coin, currency and of intangible Contracting Party or political subdivision thereof property, including, without limitation of the from attaching or levying execution, subject to any foregoing, shares of stock, credit instruments, prior lien or claim of the Bank, upon admitted securities, and evidences of indebtedness, and (2) or adjudicated claims of its nationals against the precious metals, other than precious metals pro- Bank or upon property admitted or adjudicated to duced in the territory of the High Contracting be held by the Bank for such nationals. Party and being exported for the first time, owned or held by the Bank, or deposited with it on a B. Where restrictions, regulations, prohibitions custody basis or otherwise, and by whomsoever or controls exist or are hereafter imposed in the held, shall be exempt and immune from any custerritory of a High Contracting Party in regard toms duties or imposts or other taxation. The to the conversion or exchange of its currency into provisions of this paragraph shall not be construed foreign currencies, the High Contracting Party to restrict in any manner any exemption, deducshall make available to the Bank, by sale or other- tion, credit or other allowance accorded by the wise, as provided in the next sentence, foreign ex- laws of any of the High Contracting Parties in change and precious metals, requested by the Bank, the determination of a tax imposed by such party. for such local currency acquired by the Bank as a result of loans, discounts, extensions of credit D. The Bank, its assets, obligations to it and its (including those in the form of deposits), guaran- real and personal property of whatsoever nature, ties thereof, or investments, made by the bank to shall, wheresoever located and by whomsoever such High Contracting Party, in its securities and held, be subject to attachment^ or execution by a obligations, or with its guarantee, express approval private party only after final judgment or decree or consent, or to which it has made no timely in a suit, action, or proceeding in a court of a objection as defined in and when expressly pro- High Contracting Party or political subdivision vided for by the by-laws of the Bank, including thereof. principal, interest, and other returns thereon. Such foreign exchange and precious metals shall E. The shares of stock and the notes, debenbe so made available to the Bank on a basis, as tures, bonds and other securities and obligations to amount, rate, and all other factors, no less issued by the Bank shall be exempt and immune favorable than the most favored treatment ex- from prohibitions, restrictions, regulations, or contended under any circumstances by the High Con- trols now or hereafter imposed by any High Contracting Party to any government including its tracting Party or any political subdivision thereof, own or to any political subdivision, individual, with respect to the registration, issue and sale of partnership, association, corporation or other or- stock, notes, debentures, bonds and other securiganization or entity of whatsoever nature. ties and obligations; provided that notes, debentures, bonds and other securities and obligations C. The Bank and its assets and real and personal issued by the Bank shall not be issued or sold property of whatsoever nature, including without by the Bank in the territory of a High Contractlimitation of the foregoing, its Charter, franchise, ing Party which makes a timely objection, as procapital, reserves, surplus, income and profits; its vided in the By-Laws of the Bank. activities, transactions and operations; its shares of stock and all notes, debentures, bonds and other Article III such obligations issued by the Bank, including dividends and interest thereon, by whomsoever As used in this Convention and the annexed Byheld; any remunerations or salaries paid by the Laws of the Inter-American Bank "nationals" of a Bank; and any individual, partnership, corpora- High Contracting Party or of a participating countion, association or other entity in its dealings and try or government shall include any person who is relations with the Bank in any of the foregoing domiciled in, or a citizen or resident of, such High matters and in its acquisitions, holdings transfers Contracting Party or such participating country or or dispositions of any such shares and obligations government; and shall also include any individual, of the Bank, shall be exempt and immune from all partnership, association, corporation or other entity taxation by a High Contracting Party or a political organized under the laws of such High Contracting subdivision thereof now or hereafter imposed and Party or such participating country or government by whatever name described, including, without or political subdivision thereof or having a permanent 520 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Inter-American Bank establishment, such as a branch, office, agency or PROPOSED CHARTER OP THE INTER-AMERICAN BANK other fixed place of business, in the territory of such High Contracting Party or of such participating (Such Charter would be granted by an Act of the country or government; but shall not include the Congress of the United States of America) Bank. As used in this Convention and the annexed Sec. 1. There is hereby created a body corporate By-Laws of the Inter-American Bank, "political sub- with the name "Inter-American Bank", hereinafter division" shall include territories, dependencies, pos- referred to as "the Bank". sessions, states, departments, provinces, counties, Sec. 2. The structure, operations and activities of municipalities, districts, and other similar govern- the Bank shall be as defined by the By-Laws, which mental organizations and bodies and agencies and in- are annexed to the Convention relating to the estabstrumentalities thereof. lishment of the Bank. The Bank shall also have all incidental powers necessary and proper to carry out Article IV. the powers now or hereafter expressly authorized The original of the present Convention in English, herein or in the By-Laws of the Bank. Spanish, Portuguese and French shall be deposited Sec. 3. The Bank may begin operations when at in the Pan American Union, in Washington, and least a total of 145 shares of stock of the Bank are opened for signature on behalf of the American subscribed for by at least five governments which Republics. have also deposited their ratifications of the afore- Article V mentioned Convention with the Pan American Union. The present Convention shall be ratified and effec- Sec. 4. The Bank shall have succession for a period tuated by the High Contracting Parties in conformity of twenty years from the date of enactment hereof with their respective constitutional methods. The or until such earlier time as it shall be lawfully dis- Pan American Union shall transmit authentic cer- solved. The United States agrees not to repeal or tified copies of the original of the Convention to the amend this charter except upon the request of the High Contracting Parties for the purpose of rati- Bank pursuant to a four-fifths majority vote of the fication. The instruments of ratification shall also Board of Directors of the Bank. The United States be deposited in the archives of the Pan American may extend the charter for additional twenty year Union, which shall notify the signatory governments periods upon the request of the Bank pursuant to a of such deposit. Such notification shall be considered four-fifths majority vote of the Board of Directors as an exchange of ratifications. of the Bank. Sec. 5 Amendments to the By-Laws of the Bank, Article VI consistent with the aforementioned Convention, this Charter, and the purposes of the Bank as now set The present Convention shall come into effect as out in Article 5 A of the By-Laws of the Bank, may between such ratifying High Contracting Parties if be adopted by the Bank pursuant to a four-fifths and when ratifications of this Convention shall have majority vote of the Board of Directors, provided, been deposited with the Pan American Union by at however, that Article 5 A of the By-Laws may not least five of the High Contracting Parties which have be amended, and provided further, that a unanimous agreed to subscribe for at least a total of 145 shares vote of the representatives of all the participating of stock of the Bank. Each deposit of ratification governments (and not merely unanimity of the votes shall be accompanied by the designation of a person cast) shall be required to increase or decrease the to serve on the Organizing Committee of the Bank, minimum holdings of participating governments in which Committee shall meet forthwith after the the stock of the bank and to amend the provisions of Convention shall have come into effect as provided the By-Laws relating to the manner and effect of the herein and proceed with all arrangements necessary making of a timely objection by a participating govfor prompt organization of the Bank. ernment. As used in this act four-fifths majority vote of the Board of Directors shall mean four-fifths Article VII of the votes cast. Each High Contracting Party shall remain bound Sec. 6. The Bank shall have power to adopt, alter under this Convention for one year after such Party and use a corporate seal; and to make such contracts ceases to participate in the Bank and ceases to be in and to acquire, own, hold, use or dispose of such real any way obligated to the Bank. and personal property, as may be necessary for the transaction of its business. Article VIII Sec. 7. The Bank may sue and be sued, complain This Convention shall remain open to the ad- and defend, in any court of competent jurisdiction. herence of American Republics which are not original Any civil suit at law or at equity, brought within signatories. The corresponding instruments shall be the United States, its territories and possessions, to deposited in the archives of the Pan American Union which the Bank shall be a party shall be deemed to which shall communicate them to the other High Con- arise under the laws of the United States, and the tracting Parties. district courts of the United States shall have original IN WITNESS WHEREOF: the undersigned plenipo- jurisdiction of all such suits; and the Bank in any tentiaries, having deposited their full powers found such suit may, at any time before the trial thereof, to be in due and proper form, sign this Convention remove such suit into the district court of the United on behalf of their respective Governments, and affix States for the proper district by following the prothereto their seals on the dates appearing opposite cedure for the removal of causes otherwise provided their signatures. by law. JUNE 1940 521 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Inter-American Bank PROPOSED BY-LAWS OF THE INTER-AMERICAN BANK Group H: Over 500 million dollars: Argentina, Brazil and United Pan American Union, Washington, D. C, April 17, States of America 50 shares 1940 Each participating government may subscribe for DRAFT OF BY-LAWS OF THE INTER-AMERICAN BANK stock in addition to the minimum. Where the demand 1. Location for such additional stock exceeds the amount available for issue by the Bank, such demand will be met The principal office of the Bank shall be in the on an equal basis from such available shares. United States of America and at least one branch or C. Governments of American Republics which do agency of the Bank shall be established an the terrinot participate in the Bank at the time of its formatory of every other participating government. Addition or which shall have at any time ceased to particitional branches and agencies may also be established. pate in the Bank, shall be permitted to participate in 2. Capital structure and participation the Bank upon adhering to the Convention relating to the Bank, subscribing for the minimum number of A. The capital stock shall be expressed in United snares, and complying with any other terms and con- States dollars (hereafter referred to as dollars) and ditions designated in regulations of the Bank. shall be authorized in the amount of $100,000,000 consisting of 1000 shares haying a par value of D. Liability of a shareholder on its shares shall be $100,000 each, to be paid for in gold or in dollars. limited to the issue price of the shares held by it. Fifty per cent of the issue price of each share shall E. (1) The shares of stock held by each governbe paid up at the time of subscription for such share ment shall be security for all the obligations of such and the balance may be called up at a later date or government to the Bank and shall not be otherwise dates at the discretion of the Board of Directors of pledged or encumbered by the shareholder. the Bank; Provided, however, that with respect to (2) If a government fails to make payment on a the minimum shares of governments in groups A, B, share on the day appointed for such payment, the and C, 25 per cent of the issue price of each share Bank may, after giving reasonable notice to such shall be paid up at the time of subscription, an addigovernment, vest in itself title to such share, paying tional 25 per cent of the issue price shall be paid up to the defaulting shareholder an amount equal to the within 12 months thereafter, and no calling up of fair value of such share as determined by the Bank balances shall require any government in such groups less any amount which the Bank considers necessary to pay more than 25 per cent of the issue price of such as additional collateral for any outstanding obligaminimum shares within any 12-month period. Three tion or liability of such government to the Bank. months' notice shall be given of any calling up of any Failure to make payment on a share on the day apbalance on any shares. Upon the formation of the pointed for such payment shall deprive the defaulting Bank the shares of stock shall be sold at par. Theregovernment of its right to exercise a vote in respect after the issue price of shares shall be fixed by a fourof such share so long as such government remains in fifths majority vote of the Board of Directors. default, provided that the failure of a government to B. Stock shall be available for subscription only to make Dayment on the minimum number of shares rethe Governments of the American Republics which quired to be subscribed by it shall deprive such govhave subscribed or adhered to the Convention relating ernment of the right to exercise any voting power to the Bank. For a Government to participate in the during the period of default. Bank it must subscribe for a minimum number of (3) If a government defaults on any other obligashares, determined in relation to the dollar value of tion to the Bank, the Bank may, after taking reasonthe total foreign trade of each of the American Reable action to realize on any other collateral given to publics during the year 1938, as follows: secure such obligation and after giving reasonable Group A: Up to 25 million dollars: notice to such government, vest in itself title to an Costa Rica, Ecuador, El Sal- appropriate number of shares belonging to such govvador, Haiti, Honduras, Nica- ernment and apply to the defaulted obligation the ragua and Paraguay 5 shares fair value of such shares, as determined by the Bank. Group B: Over 25 million dollars and Any amount remaining, less any amount which the up to 50 million dollars: Bank considers necessary as additional collateral for Dominican Republic, Guate- any outstanding obligation or liability of such govmala and Panama 10 shares ernment to the Bank, shall be paid by the Bank to the Group C: Over 50 million dollars and defaulting government. up to 75 million dollars: (4) If, after a government has had a reasonable Bolivia 15 shares opportunity to present its position to the Board of Group D: Over 75 million dollars and Directors, the Board by a four-fifths majority vote up to 100 million dollars: finds that such government has violated any provision Uruguay 20 shares of the Convention relating to the Bank, such government shall cease to participate in the Bank, but its Group E: Over 100 million dollars and obligations and duties with respect to the Bank shall up to 150 million dollars: continue and the Bank may vest in itself title to an Peru 25 shares appropriate number of shares belonging to such gov- Group F: Over 150 million dollars and ernment and apply the fair value of such shares as up to 250 million dollars: determined by the Bank to compensate the Bank for Chile, Colombia and Cuba... 30 shares such damages as the Bank determines it suffered by Group G: Over 250 million dollars and reason of such violation. Any amount remaining, up to 500 million dollars: less any amount which the Bank considers necessary Mexico and Venezuela 35 shares as additional collateral for any outstanding loan or 522 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Inter-American Bank liability of such government to the Bank shall be paid for reelection and may be removed for cause at any by the Bank to such government. time by the Board. The Board of Directors shall F. Shares of stock may be transferred only to the determine the order in which vice presidents shall Bank or to other participating governments at a price serve as acting president and chairman in the abto be agreed upon between the parties and upon the sence of the president. approval of the transfer by a four-fifths majority D. The departmental organization of the Bank vote of the Board of Directors. If, as a result of the shall be determined by the Board of Directors. The transfer of shares of stock or acquisition by the Bank, heads of departments and other similar officers shall or for any other reason, a government holds less than be appointed by the Board on the recommendation the minimum amount of shares of stock required of of the president. The remainder of the staff shall be it, such government shall cease to participate in the appointed by the president. Bank, but its obligations and duties with respect to E. The Board of Directors may also appoint from the Bank shall continue. among its members an executive committee. The G. The capital structure of the Bank, including the Board may at any meeting, by a four-fifths majority number and par value of shares may be increased or vote, authorize the president or the executive comdecreased by a four-fifths majority vote of the Board mittee or any other committee of the Bank to exerof Directors, except that a unanimous vote of the cise any specified powers of the Board; provided, representatives of all the participating governments however, that such powers shall be exercised only (and not merely unanimity of the votes cast) shall until the next meeting of the Board and shall be be required to increase or decrease the minimum hold- exercised in a manner consistent with the general ings of participating governments. policies and practices of the Board. The Board may also, by a four-fifths majority vote, delegate to desig- H. The voting power of the participating governnated officers and committees of the Bank, for such ments on the Board of Directors shall be distributed periods as it may determine, power to make loans and as follows: 20 votes for each government for its extend credit in such small amounts as may be fixed minimum shares, and 1 vote for each additional share. by the Board. However, regardless of the amount of stock owned by it, no government shall have a voting power in excess F. The Board of Directors may appoint advisory of 50 per cent of the total voting power of all the committees chosen wholly or partially from persons other participating governments. not regularly employed by the Bank. G. The Board of Directors, within a year after its first meeting, shall by regulations prescribe the re- 3. Management serves to be established and maintained against demand deposits and other obligations of the Bank and A. The administration of the Bank shall be vested shall prescribe a limitation on the amount of interin the Board of Directors composed of one director mediate and long-term assets in relation to capital and one alternate appointed by each participating and surplus; and such regulations shall not be government. Each government shall appoint its amended, modified or revoked except by a four-fifths director and alternate and any nominee or proxy in majority vote of the Board. a manner to be determined by it. Such director shall serve for a period of two years, subject to the pleas- H. Before the Bank finally approves an interure of his government. An alternate and a nominee mediate or long-term loan or extension of credit, a or proxy shall serve for such period as shall be de- full written report on the merits of the proposed termined by his government. The Bank shall pay transaction shall be prepared by a committee of exsuch reasonable expenses as are incurred by the perts which may include persons other than officers directors and alternates and nominees or proxies and employees of the Bank. in attending any meetings of the Board or any com- I. Except as herein otherwise provided, decisions mittee of the Bank. The voting power held by a of the Board of Directors shall be by simple majorparticipating government shall be exercised by the ity of the votes cast. In the case of equality of votes, director and in his absence by the alternate and in the chairman, or in his absence the vice chairman the absence of both the director and alternate by the serving in his stead, shall have a deciding vote. When nominee or proxy of such government in such manner deemed by the president to be in the best interests as the Board may provide by regulations. The alter- of the Bank, decisions of the Board may be made, nate may otherwise participate in the activities of without a meeting, by polling the directors on specific the Board. questions submitted to them in such manner as the B. Meetings of the Board of Directors shall be Board shall by regulations provide. The Board shall held not less than four times a year and may be by regulations determine what constitutes a quorum held either at the principal or any branch office or at for a meeting. any other city in a participating country as the Board J. Authorization or approval by four-fifths majormay determine. The president may call special or ity vote of the Board of Directors shall be required extraordinary meetings of the Board at any time. for the making and granting of intermediate and All meetings, regular, special or extraordinary, shall long-term loans and credits, including the assumpbe held upon such reasonable notice as the Board may tion of the obligation of a guarantor on intermediate provide by regulations. and long-term loans and credits; the acquisition and C. The Board of Directors shall select a president sale of, and dealing in intermediate and long-term of the Bank who shall be the chief of the operating obligations and securities; the discounting and restaff of the Bank and who also shall be ex-officio discounting of intermediate and long-term paper; chairman of the Board, and one or more vice presi- engaging in bullion and foreign exchange transacdents, who shall be ex-officio vice chairman of the tions and guaranteeing the availability and the rates Board. The president and vice presidents of the of exchange of the currencies of participating gov- Bank shall hold office for two years, shall be eligible ernments; the issuance of debentures and other JUNE 1940 523 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Inter-American Bank securities and obligations of the Bank; the payment all the liabilities of the Bank, the assets remaining of interest on deposits of governments, fiscal agencies shall be divided among the shareholders. and political subdivisions thereof and central banks; G. The shares shall carry equal rights to particithe selection or removal of a president, the vice pate in the profits of the Bank and in any distribupresidents, heads of departments and other similar tions of assets upon liquidation of the Bank. officers of the Bank; the determination of the departmental organization of the Bank and of the 5. Purposes and Powers functions and duties of the officers and principal employees of the Bank and the executive and other A. The Bank is created by the American Republics committees; the calling up of the balances due on to carry out the following purposes: stock; the establishment, creation, change or dis- (1) Facilitate the prudent investment of funds continuance of the principal office and branches and and stimulate the full productive use of capital and agencies of the Bank, and for amending the By- credit. Laws, except that Article 5 A of these By-Laws may (2) Assist in stabilizing the currencies of Amernot be amended, and except that the provisions of ican Republics; encourage general direct exchanges these By-Laws relating to the manner and effect of of the currencies of American Republics; encourage the making of a timely objection by a participating the maintenance of adequate monetary reserves; government may not be amended except by a unanipromote the use and distribution of gold and silver; mous vote of the representatives of all the participatand facilitate monetary equilibrium. ing governments (and not merely unanimity of the votes cast). (3) Function as a clearing house for, and in other ways facilitate, the transfer of international pay- K. Authorization or approval of specified series, ments. classes, groups or other categories of transactions may be made in advance by the Board of Directors (4) Increase international trade, travel and exby the vote required in such cases by these By-Laws. change of services in the Western Hemisphere. (5) Promote the development of industry, public 4. Accounts and Profits utilities, mining, agriculture, commerce and finance in the Western Hemisphere. A. The financial year of the Bank shall end on (6) Foster cooperation among the American Re- December 31. publics in the fields of agriculture, industry, public B. The books and accounts of the Bank shall be utilities, mining, marketing, commerce, transportaexpressed in terms of dollars. tion and related economic and financial matters. C. The Bank shall publish an annual report and (7) Encourage and promote research in the techat least once a month a statement of account in such nology of agriculture, industry, public utilities, minform as the Board of Directors may prescribe. The ing and commerce. Board shall cause to be prepared a profit and loss account and a balance sheet for each financial year. (8) Engage in research and contribute expert ad- All published documents shall be printed in the official vice on problems of public finance, exchange, banking languages of the participating governments. The and money as they relate specifically to the problems Board shall designate a committee of Directors to of American Republics. arrange for examination, at least once a year, of the (9) Promote publication of data and information books and accounts of the Bank by competent ex- relating to the purposes of the Bank. perts to be selected by the committee. B. In order to carry out the foregoing purposes, D. The yearly net profits of the Bank shall be the Bank shall have specific power to: applied as follows: (1) Make and grant short-term, intermediate and 1. Not less than 25 per cent of such net profits shall long-term loans and credits in any currency and in be paid into surplus until the surplus is equal precious metals to participating governments and to in amount to the par value of the authorized fiscal agencies, central banks, political subdivisions capital stock of the Bank. and nationals thereof; provided that any such loan 2. The remainder of such net profits shall be ap- or credit having a maturity exceeding two years to plied towards the payment of a dividend of not any such fiscal agency, central bank, political submore than 3 per cent per annum on the paid up division or national shall be guaranteed by the govamount of the stock of the Bank; provided, ernment thereof, and provided further that any such however, that dividends shall be noncumulative loan or credit having a maturity not exceeding two and no dividends shall be paid so long as the years shall not be made or granted by the Bank to capital of the Bank is impaired. any such fiscal agency, central bank, political sub- 3. The balance of such profits shall be paid into division or national if the government thereof makes surplus and be designated a dividend reserve. a timely objection. (2) Buy, sell, hold and deal in the obligations and E. The Board of Directors by a four-fifths major- securities of any participating government and of ity vote may declare dividends out of the dividend fiscal agencies, central banks, political subdivisions reserve in surplus of the Bank, provided, however, and nationals thereof, unless such government makes that total dividends in any one year, including divi- a timely objection to the purchase thereof; provided dends paid pursuant to paragraph D2 above, shall that such obligations and securities having maturities not be more than 3 per cent of the paid-up amount of exceeding two years as are not the direct liability of the stock. such government are guaranteed by such government; F. The Bank may not be liquidated except by a and provided, further, that the Bank shall not buy four-fifths majority vote of the Board of Directors. obligations and securities that are in default in whole Upon liquidation of the Bank and after discharge of or in part as to principal or interest. 524 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Inter-American Bank (3) Guarantee in whole or in part credits and loans (10) Open and maintain demand, time, and cusmade from any source to any participating govern- tody deposits and accounts with governments and ment and to fiscal agencies, central banks, political banking institutions and arrange with governments subdivisions and nationals thereof, provided that such and banking institutions to act as agent or correcredits and loans having maturities exceeding two spondent for the Bank, unless such banking institution is situated in the territory of a participating years as are not direct obligations of such government government and such government makes a timely are guaranteed by such government, and provided objection. further that such credits and loans having maturities not exceeding two years as are not direct obligations (11) Act as agent or correspondent for any parof such government shall not be guaranteed by the ticipating government and for fiscal agencies, central Bank if such government makes a timely objection. banks and political subdivisions thereof, unless the government makes a timely objection. (4) Act as a clearing house of funds, balances, (12) Engage in financial and economic studies and checks, drafts and acceptances. publish reports thereof. (5) Buy, sell, hold and deal in precious metals, currencies and foreign exchange for its own account (13) Buy, sell and deal in cable transfers, accept and for the account of others; provided, however, bills and drafts drawn upon the Bank, and issue that no such transaction shall be entered into with a letters of credit; all subject to the limitations herein fiscal agency, central bank, political subdivision, or provided with respect to loans, extensions of credit, national of a participating government, if such gov- discounting and rediscounting of paper, and dealing ernment makes a timely objection; and guarantee in obligations and securities. the availability and the rates of exchange of the cur- (14) Adopt, alter and use a corporate seal; acrencies of participating governments. quire, own, hold, use or dispose of such real and personal property as may be necessary for the trans- (6) Issue or sell debentures and other securities action of its business; and make contracts subject and obligations of the Bank to obtain assets for the to the limitations herein provided. purposes of the Bank, provided that such debentures (15) Exercise incidental powers necessary and and other securities and obligations shall not be proper to carry out the powers expressly authorized issued or sold by the Bank in the territory of any herein. participating government which makes a timely objection. The Bank may also borrow in any other C. The Board of Directors shall determine the manner from participating governments, and from nature of the operations which may be undertaken political subdivisions and banking institutions thereof by the Bank in the exercise of its powers and in unless the government of the lender makes a timely order to effectuate its purposes. The operations of objection. the Bank shall at all times be conducted in conformity with the laws of the territory where the Bank is act- (7) Accept demand, time, and custody deposits ing and, so far as possible, be conducted in conformity and accounts from others, including participating with the policies of the participating government governments and fiscal agencies, central banks, politi- directly concerned. cal subdivisions and nationals thereof unless the participating government makes a timely objection; 6. Interpretations and Definitions. provided that the Bank shall pay interest, if any, only on deposits of governments, fiscal agencies and As used herein: political subdivisions thereof and central banks. A. Four-fifths majority vote of the Board of Direc- (8) Discount and rediscount bills, acceptances and tors shall mean four-fifths of the votes cast. other obligations and instruments of credit of par- B. "Short-term" shall mean a period less than one ticipating governments and fiscal agencies, central year; "intermediate" shall mean a period from one banks, political subdivisions and nationals thereof, to five years; and "long-term" shall mean a period provided that such paper having maturity exceeding longer than five years; and the period applicable to two years as is not the direct obligation of such gov- any outstanding obligation shall be the period reernment is guaranteed by the government, and pro- maining to its maturity rather than the period from vided further that such paper having a maturity not its issuance to maturity. exceeding two years as is not the direct obligation of C. A government shall be deemed to make a timely such government shall not be discounted or redisobjection only if such government, after its director counted by the Bank if such government makes a is notified by the Bank of the Bank's proposed action timely objection. or course of action, presents to the Bank within the (9) Rediscount with any government, fiscal agency reasonable period of time fixed by the Board, through or banking institution bills, acceptances and instru- such government's director, alternate, nominee or ments of credit taken from the Bank's portfolio; proxy its objection to such action or course of action. provided, however, that the Bank may not rediscount The Bank shall notify the directors representing the with a fiscal agency or a banking institution in the governments concerned when the Bank contemplates territory of a participating government which makes action or a course of action as to which provision for a timely objection. such timely objection is made in these By-Laws. JUNE 1940 525 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Retail Unit ailment Papet jfetd l2y I N connection with the call reports as of De- Automobile loans accounted for $388 million cember 30, 1939, a special report of retail or almost 72 per cent of all retail installment installment loans held on December 30, 1939loans. was called for by the Federal bank super- Banks in the smaller localities held relavisory agencies—the Comptroller of the Cur- tively larger amounts of installment paper rency for national banks, the Board of Gov- than the large city banks. As shown in the ernors for State member banks, and the following table, insured nonmember banks Federal Deposit Insurance Corporation for reported retail installment loans equal to 9.0 insured nonmember banks. Reported figures per cent of their customer loans, "country" were "the unpaid balances of all installment member banks 6.3 per cent, reserve city memloans arising from the retail sale of, and se- ber banks 4.8 per cent, and central reserve cured by, automobiles, household appliances, city member banks 1.9 per cent. furniture, clothing, jewelry, etc.; i.e., retail Although automobile loans are a very large installment paper purchased from or redis- part of retail installment loans their imporcounted for dealers and finance companies and tance varies widely from place to place. Autoinstallment loans made directly to individuals mobile installment loans were 80 per cent of to finance the purchase of, and secured by, the retail installment loans of insured nonsuch goods". The figures do not include loans member banks but were less than 25 per cent made to dealers and finance companies on at central reserve city member banks. As their own notes even if secured by the pledge shown in the table on page 587 the larger citof installment paper, nor installment loans ies, particularly those on the Eastern seamade directly to individuals for purposes board, reported relatively smaller amounts of other than the purchase of goods. Because of automobile installment loans; in the smaller its relative importance, automobile install- cities, particularly in the Mid-west and Westment paper was reported apart from the other ern areas, automobile loans were very large types of retail installment paper. The retail parts of the totals. installment loans of all insured commercial Retail installment loans were reported by banks by States and geographic divisions and banks in all sections of the country, but they for 25 leading cities are shown in the tables were relatively most important in the Pacific on pages 586-587 of this BULLETIN. States where they amounted to more than 12 Of the 13,498 insured commercial banks per cent of customer loans. The States of from which reports were received, 10,382 Nevada, Oregon, California, Michigan, New or 77 per cent of the total held $541 million Mexico, and Indiana reported retail installof retail installment loans. This is 1.4 per ment loans of more than 10 per cent of cuscent of total loans and investments of these tomer loans. At the other extreme retail banks and 5 per cent of all their so-called installment loans were 3 per cent or less of customer loans, i.e. of all loans other than customer loans in Massachusetts, Rhode Isopen market paper, real estate loans, and land, New York, Illinois, Delaware, Kentucky, loans for purchasing and carrying securities. and Louisiana. RETAIL INSTALLMENT PAPER HELD BY INSURED COMMERCIAL BANKS [By classes of insured commercial banks, December 30, 1939] Retail installment paper Number of banks (In thousands of dollars) Ratio of total in- Classes of banks s i r R n t e a p g t e l a a l p i s m p l o o e r e i m r n t n - - e t s r R t e i a p n t e l a a g l p i p m l o n e r e i r o n t n - - t Total s a f s r a e u v o A l c t e e m o u r s h i r m i s o e c r i d f o e n l e t t a g i a b s n v i y d l e s f s a r e o A l c e g m o u r s o t r i h o o s e r i e d d f e n r s a t g b a n i y d l s c p t u l a a o s l p a t l e o m n r m s e t i e n o r t All insured commercial banks—total 10,382 3,116 541, 367 387,647 153, 720 5.1 Member banks—total _ _ _ 5,021 1,330 400, 695 274, 758 125,937 4.4 Central reserve city banks ___ 18 32 51,065 12, 366 38,699 1.9 Other reserve city banks __ _ _ 271 85 169, 276 122, 564 46, 712 4.8 Country banks 4,732 1,213 180, 354 139,828 40, 526 6.3 Insured nonmember banks—total 5,361 1,786 140, 672 112, 889 27, 783 9.0 i "Customer loans" as used here consists of total loans less open market paper, real estate loans, and loans for purchasing or carrying securities. 526 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Mamltet Hank Operating ]Qatio5 1939 f AVERAGES of operating ratios of member Comparisons with previous years.—In banks for 1939, grouped by Federal Re- 1939, as in 1938, interest on loans accounted serve districts, by size of bank, and by pro- for an increasing proportion of the total inportionate holdings of time deposits, are pre- come received by member banks, and intersented on pages 588-601 of this BULLETIN. est on securities continued to decline. As These averages of member bank operating shown in the table below, the average ratio ratios are intended to reflect the operating of interest on loans to total earnings for all experience of so-called "typical" member member banks was about 55 per cent in 1939, banks in the various groupings, and differ compared with 50 per cent in 1937, and the from corresponding percentages based on ratio of income from securities to total earntotals of dollar amounts published in the May ings was 30 per cent, compared with 35 per BULLETIN. Comparison of the averages for all mem- SELECTED OPERATING RATIOS—MEMBER BANKS ber banks with similar averages available for [Percentage figures; averages of individual bank ratios] the two preceding years shows that the rate of net current earnings on capital accounts Item 1937 1938 1939 was practically unchanged, but that the ex- Ratios to total earnings: cess of charge-offs over the total of recov- Interest and discount on loans _ __ _ 49.7 52.2 54.5 eries and of profits on securities sold de- Interest and dividends on securities 34.8 3 5 2 . . 2 3 2 5 9 . . 4 8 clined, with the result that the average rate A Se l r l v o ic th e e r c h e a a r r g n e i s n g . s _ _ __ _ _ 10.3 10.3 of net profits on capital accounts was higher Total earnings— ___ 100.0 100.0 100.0 in 1939 than in either 1937 or 1938. The aver- Salaries and wages 28.1 28.9 29.2 age rate of interest on loans was unchanged Interest on time deposits. 19.1 18.3 17.1 All other expenses __ 25.6 24.6 25.2 from 1937 through 1939, while that on securities declined somewhat. Total expenses _ 72.8 71.8 71.5 The average ratio of net profits to com- Net earnings _ __ 27.2 28.2 28.5 Net charge-offs, etc -__ 5.8 '9.8 4.6 bined capital accounts shown in the table Net profits _ 21.4 '18.4 23.9 below was 6.6 per cent in 1937 and 7.0 per cent in 1939, whereas the ratio of aggregate Ratios to total capital accounts: Net earnings- ___ „ __ 8.6 8.6 profits of all member banks to capital, shown Net charge-offs, etc _ 2.0 3!l 1.6 in the chart on page 395 of the May BUL- Net profits _. 6.6 5.6 7.0 LETIN, was 6.3 per cent in both 1937 and Ratios to total assets* 1939. These differences reflect the fact that Total earnings 3.9 4.0 3.8 net profits were considerably higher in 1939 Total expenses.. _ 2.8 2.9 2.7 than in 1937 at small banks and moderately Net earnings . __ 1.1 1.1 1.1 Net charge-offs, etc - .2 .4 .2 higher at most other banks but were propor- Net profits... __ .9 .7 .9 tionately lower at the very large banks. Percentages based on the aggregate figures re- Loans _ 34.2 34.7 Securities 35.7 32.5 flect primarily the experience of those banks Total capital accounts » (2) 14.2 13.9 in each group whose figures are largest. Among the 6,300 member banks, for ex- 1 For the years 1937 and 1938 these ratios are to total available funds (i. e., capital accounts, deposits, and borrowed money) instead of total ample, the 100 largest account for approxi- assets. The effect of this difference on the averages shown is negligible. a Not computed. *• Revised. mately half of aggregate dollar earnings. In cent in the earlier year. This shift resulted the present analysis equal weight is given the ratios of each bank—regardless of its size— partly from a decline in the average rate of and the figures may therefore be said to income from securities. It appears that anindicate the typical operating characteristics other influence has been a moderate increase of banks, particularly when broken down by in the average proportion of loans to total size groups, more nearly than other similar assets.1 figures based on aggregates, since the influ- 1 Average ratios of loans and securities to total assets were not ence of the many small and medium-sized computed for 1937, but it is estimated that the average of loan holdings rose from 1937 to 1938, while security holdings declined. banks in the averages here shown is much Since the increased loan holdings in both 1938 and 1939 were greater than it is in aggregate dollar amounts not participated in by the very large banks as a group, the rise is not reflected in the total dollar amounts reported for member and ratios based on them. banks (as for example those shown on page 465 of the May 1940 BULLETIN ). JUNE 1940 527 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Member Bank Operating Ratios, 1939 The following table shows that the average Reserve districts.1 For example, banks in the rates of income, both gross and net, received Southern and Western districts on the whole by member banks on their loans did not are shown to have smaller than average prochange during 1937-1939. However, the av- portions of their assets in securities, with erage rate of interest income from securities larger than average loan holdings and also declined slightly over this period. The rate larger holdings of cash assets. Banks in these of interest on loans averaged 6.2 per cent for areas have higher than average rates of earnall member banks in each of the three years, ings and profits in relation to both capital and the rate of net return on loans (after accounts and total assets, which reflect among allowing for charge-offs and recoveries) was other things their larger income from loans, likewise constant at 5.9 per cent. Interest lower time deposit holdings with consequently on securities was at an average rate of 3.3smaller interest expense, and smaller than per cent in 1939, as compared with 3.4 peraverage rates of net charge-offs on assets. cent in 1938 and 3.5 per pent in 1937. In Banks in the Northeastern and East North 1939 recoveries on securities and profits on Central areas earn at lower rates than the securities sold exceeded charge-offs on se- nation-wide average, notwithstanding their curities by a larger amount than in 1937; in relatively large holdings of earning assets, 1938 there was an excess of charge-offs. partly because their assets—particularly loans—are of a lower-yield character. Aver- INCOME RATES ON LOANS AND SECURITIES— age rates of net profits on total capital ac- MEMBER BANKS counts are relatively high in the South and [Percentage figures; averages of individual bank ratios] West and lower in the North and Northeast. Dividend rates vary somewhat similarly Item 1937 1938 1939 among Federal Reserve districts. Size-of-bank comparisons.—The table on Ratios to loans: Interest and discount on loans 6.2 6.2 6.2 page 589 shows averages of the 1939 ratios Recoveries on loans .5 .5 of banks grouped by amounts of total depos- Charge-offs on loans _ .8 .8 its 2 and by proportions of time deposits. On Net charge-offs on loans .3 .3 .3 the succeeding pages these averages are Net return on loans. 5.9 5.9 5.9 shown for the member banks in each Federal Reserve district separately. From the size- Ratios to securities: Interest and dividends on securities 3.5 3.4 3.3 of-bank classification of the figures it is seen Recoveries on securities C1) .2 .4 that the ratios of earnings, expenses, net Profits on securities sold .8 1.1 charge-offs, and net profits to total assets Charge-offs on securities 0) 1.2 1.1 were consistently lower for large banks than Net charge-offs on securities 2. +.2 .2 +.4 for small banks. The higher earnings rates Net return on securities 3.7 3.2 3.7 on total assets of small and medium-sized banks reflect both higher rates of interest ini Not computed. 2 A plus indicates net recoveries, etc. come on loans and securities and larger pro- Regional comparisons.—With minor ex- portionate holdings of loans. As compared ceptions, it appears that the operating ratios with capital accounts, the net earnings and of banks located in the various Federal Re- net profits of banks in the smallest, as well serve districts keep about the same relation- as the largest, size group were lower than for ships year after year. This is also true as banks in other size groups. This results from among banks in different size groups. The the much larger proportion of capital to aspersistence of these relationships suggests sets in the smallest size group. Net chargethat the differences are not the result of acci- offs, etc. (i.e., the difference between net dental influences. Differences in average earnings and net profits, representing the asset holdings of banks in various parts of excess or deficiency of charge-offs over the the country, as well as in various size groups total of recoveries and of profits on securities and time deposit groups, are shown in thesold), whether related to total assets, capital chart on the following page. Some of the accounts, or total earnings, were highest for wide geographic variations in the operating 1 Average ratios for 1937, by Federal Reserve districts and by characteristics of banks are brought out bysize groups by Federal Reserve districts, were published on pp. the table on page 588, which shows averages 689-696 of the August 1938 BULLETIN. Similar averages for 1938 are available in mimeographed form. of the operating ratios for 1939, by Federal 2 Similar averages for 1937 were published on p. 682 of the Aug. 1938 BULLETIN and for 1938 on p. 481 of the June 1939 BULLETIN. 528 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Member Bank Operating Ratios, 1939 small banks and tended to decline as the size with large time deposit holdings. The banks of banks increased. The larger profits ob- with relatively large time deposits have less tained by large banks from the sale of securi- salary expense, but, as would be expected, ties accounted in part for this tendency. more interest expense than banks with small Comparisons by proportionate holdings of proportions of time deposits. Rates of net time deposits.—So far as the influence of earnings and net profits average lowest at the proportionate holdings of time deposits can banks that have large proportions of time be appraised apart from the influences of deposit holdings. geographic location and size of bank, the fol- Large proportionate time deposit holdings lowing conclusions seem to be deducible from are more common in Eastern and North Centhe figures. Except for a few large banks in tral areas than elsewhere, and are more typithe money market cities, large proportionate cal of medium-sized than of either small or holdings of securities tend to be associated very large banks. LOANS, SECURITIES, AND CASH ASSETS AS PERCENTAGES OF TOTAL ASSETS OF MEMBER BANKS, 1939 (AVERAGES OF INDIVIDUAL BANK RATIOS) LOANS SECURITIES CASH ASSETS PER CENT 10 20 30 ALL MEMBER BANKS FEDERAL RESERVE DISTRICT: BOSTON NEW YORK PHILADELPHIA CLEVELAND RICHMOND ATLANTA CHICAGO ST. LOUIS MINNEAPOLIS KANSAS CITY DALLAS SAN FRANCISCO SIZE GROUP'- DEPOSITS: (IN THOUSANDS OF DOLLARS ) 250 AND UNDER 250-500 500-1,000 1,000-2,000 2,000-5,000 5.000-10,000 10,000-50.000 OVER 50,000 TIME TO TOTAL DEPOSITS: ( PER CENT) UNDER 25 25-50 50-75 75 AND OVER 529 JUNE 1940 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

6?ommetclaL Hanlc5 g an DnellgiltLa foot TedaiaL Atemlteuklp At the end of 1939 there were 14,345 com- of the McFadden Act, are subject to special mercial banks x with deposits of $56,754,000,- higher capital requirements than banks with- 000 in operation in the United States. Mem- out such branches. All of these requirements ber banks of the Federal Reserve System are set forth in detail in the Board's Regulanumbered 6,362 and had deposits of $49,340,- tion H.2 000,000. Outside the Federal Reserve System, Of the 5,209 banks with sufficient capital there were 7,983 commercial banks with de- for Federal Reserve membership, 4,870 were posits of $7,414,000,000. Member banks con- insured banks; and of the 2,774 banks with stituted 44 per cent of the number and held capital insufficient for Federal Reserve mem- 87 per cent of the deposits of all operating bership, 2,279 were insured. About 3,700 of commercial banks as of the end of 1939. the 5,209 banks eligible for membership on the basis of capital stock were on the Federal An analysis was made as of December 31, Reserve par list and about 1,500 were non-par 1939 in order to determine how many of the banks. The 2,774 banks with capital stock 7,983 nonmember commercial banks had sufinsufficient for Federal Reserve membership ficient capital for Federal Reserve memberconsisted of 1,701 banks on the par list and ship. Detailed statistics showing the results 1,073 banks not on the par list. The analysis of this analysis are given in tables on pages also shows that, of the total of 2,774 banks 602-606 of this BULLETIN. It was found that with capital stock less than the minimum re- 5,209 banks with deposits of $5,994,000,000 quirements for membership, 429 were operhad sufficient capital stock to meet the miniating branches outside their respective head mum statutory requirements for membership office cities and, accordingly, were subject to in the Federal Reserve System and 2,774 with the higher capital requirements applicable to deposits of $1,420,000,(300 had less than the such banks. minimum amount required. The distribution of nonmember banks by In order to be eligible for membership in amount of deposits shows that of the 5,209 the Federal Reserve System, banks are rebanks with capital sufficient for membership, quired to have varying amounts of capital, 1,089 had deposits of $1,000,000 or more and depending upon the size of the place in which 164 had deposits of $5,000,000 or more. The located. Except for banks located in places banks with capital stock insufficient for memwith a population of 3,000 or less, these capbership were, of course, smaller banks: of the ital requirements are the same as for the or- 2,774 ineligible banks, 2,357 had deposits of ganization of national banks. Both national less than $1,000,000. The distribution of the and State member banks operating branches 2,774 ineligible banks by amount of capital outside their respective head office cities esstock shows that 573 had capital stock of less tablished after February 25, 1927, the date than $15,000 and 1,674 had capital stock of 1 Comprises nation il banks, State member banks, other State less than $25,000, the minimum required for banks, Morris Plan ; nd other industrial banks, and trust com- Federal Reserve membership. panies (a few of which have no deposits). Does not include 551 mutual savings banks, 63 private banks, 10 branches of foreign banks, 44 cash depositories (in South Carolina), and 2 Certain provisions of Regulation H relating to the amounts 21 inactive banks and miscellaneous financial institutions some- of capital required for Federal Reserve membership are quoted times included in State banking statistics. in footnote 6 on page 606. 530 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

the Hoatd'l &otte5taondence i 1T*HE character and volume of inquiries addressed to the Board in recent years reflect the public's growing interest in problems related to money and banking. The inquiries cover a wide range of subjects representing many points of view, and it is believed that some of the questions raised, together with the Board's replies, may be of interest to the readers of the BULLETIN. Selections for publication are made on the basis of frequency of inquiry, timeliness, and importance of subject matter. Utilisation ofi the Monetaty (fold Stock In last month's issue of the Federal Re- bank reserves have both been increased by serve BULLETIN there was reprinted a letter the amount of the gold; and the Treasury's written by the Chairman of the Board of checking balance at the Federal Reserve Governors to Senator Carter Glass on theBanks, reduced by the purchase of the gold, subject of ownership of the monetary gold has been restored by credits based upon the stock. In view of the public's interest in the gold. gold problem as reflected in an increasing The purchase of the gold has cost the volume of inquiries addressed to the Board Treasury nothing, for after the transaction on the subject, it seems desirable to publish it has the same amount in its checking balalso the following account of the transac- ance that it had before. It has not borrowed tions by which gold becomes the property of an additional cent. It has acquired the gold the United States and is put to monetary use. and it has put the gold to use. It has put the gold to use not by paying it out in the form T HE process by which the Treasury ac- of coin, not by depositing it in the Federal quires gold and puts it into use involves a Reserve Bank, but by the use of credits based number of technical steps, partly the result upon it payable in gold certificates, and in of custom, partly the result of law and regu- exchange for these credits representing the lation. Reduced to simple terms they are monetary equivalent of the gold, the Treasury as follows: is credited on the books of the Federal Re- 1. The Treasury receives the gold—usually serve Banks with funds to check against. at a United States Assay Office or Mint—and The Treasury transfers these funds by check issues a check in payment for it. to those to whom it has payments to make— 2. The check is deposited by the seller of to farmers, Government employees, suppliers, contractors, and others. The use of the gold the gold at his bank, which gives him credit continues so long as the funds to which the in his deposit account. gold gives rise are in existence, no matter in 3. The bank deposits the check in the whose hands the funds may be. Federal Reserve Bank and receives credit in The net effect of these operations is the its reserve account. same as if currency were issued against the 4. The Federal Reserve Bank charges the gold and paid out into circulation either check to the balance which the Treasury directly by the Government or indirectly maintains with it. through the banking system. Most Ameri- 5. The Treasury replenishes this balance cans prefer to deposit their funds with banks by crediting gold certificates to the Federal and draw checks against them. When checked Reserve Bank in exchange for deposit credit. out, the funds are redeposited to be checked At the conclusion of these five steps the out still again and to pass on successively matter stands as follows: The Treasury has from depositor to depositor, to become part possession of the gold; bank deposits and of the constant stream of payments flowing JUNE 1940 531 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

From the Board's Correspondence to person after person through bank after and the reserve balances they owe their membank. They become part of the constantly ber banks. These reserve balances are mainshifting, circulating deposits of banks stand- tained with the Federal Reserve Banks as ing in the names of the millions of bank de- required by law. They are assets which the positors in the United States. member banks have behind the deposits they Meanwhile, beneath this volume of cir- owe their customers. culating funds by means of which the coun- Gold therefore is as fully utilized while try's monetary payments are being effected held in the Treasury's vaults as it would be lies the gold stock of the United States, safe- were it actually paid out. Its being "buried guarded in the Treasury's vaults. Its mone- in the ground" does not mean that it is untary value is represented by the gold certifi- used but that it is being safeguarded as cates credited by the Treasury to the Federal valuable property of the United States while Reserve Banks. These gold certificate credits it continues to perform its function as reconstitute Federal Reserve Bank assets be- serves behind the circulating currency and hind the Federal Reserve notes they issue bank deposits of the public. ojj Matqln s<e&uitement3 on (2u.5tomct 5 Position "When do the Board's margin require- ties exchanges that are designed to limit the ments require stockbrokers to sell customers' number of such cases. securities V9 The Board has not prescribed the amount T of margin which brokers or banks must main- HE margin requirements prescribed by tain in their customers' accounts after the the Board apply to the buying of securi- initial margin has been deposited. So far as ties, but once a purchase has been made and the Board's regulations are concerned, a the broker has obtained the required mar- broker or bank, once having obtained the gin from the customer, the Board's regula- margin initially required to be deposited, tion does not under any circumstances re- need not call for any additional margin from quire the broker to sell the customer's securi- customers even though declines in the marties. ket value of the customers' securities result The margin requirements of the Board are in the impairment of margins. contained in its Regulations T and U, both Brokers and banks for their own protecof which were issued pursuant to the provi- tion usually have maintenance margin resions of the Securities Exchange Act of 1934. quirements of their own, which are usually Regulation T is applicable to brokers, deal- considerably less than the initial margin reers, and members of national securities ex- quired by the Board's regulations. In orchanges, and Regulation U is applicable to der to prevent loss to themselves on accounts banks. Both regulations prescribe the or on loans, it is their practice to demand amount of margin which the person subject additional margin from their customers thereto must obtain from the purchasers of when the margins are reduced below a point securities to whom they extend credit for that they themselves consider to be entirely this purpose. This margin must be obtained safe and, unless the additional margin is obunder Regulation T within a prescribed tained, to sell securities and reduce the loan. period after the purchase is made, and it is The difference between the amount of maronly in the event that it is not deposited be- gin prescribed by the Board's regulations on fore the end of that period that any. securi- new purchases of securities and the amount ties are required by the regulation to be sold. of margin commonly required by brokers and In this event, the regulation requires that banks for their own protection is sometimes securities be sold in an amount sufficient to referred to as the "cushion". This is the release to the customer's account the margin amount by which the value of the securities which he failed to deposit, and supporting purchased may decline after their purchase rules have been adopted by the leading securi- before the broker or bank will feel called 532 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

From the Board's Correspondence upon, for its own protection, to demand addi- requirements prescribed by the Board under this tional margin. This amount may differ con- regulation. In maintaining any such credit, the credsiderably in different cases, since standards itor may accept or retain for his own protection additional collateral of any description, including unof maintenance may differ from broker to registered securities." broker or from bank to bank, but is at pres- "(e) Additional requirements by exchanges and ent frequently as much as 20 per cent of the creditors. Nothing in this regulation shall (1) preoriginal cost of the securities. vent any exchange from adopting and enforcing any The principal provisions of Regulation T rule or regulation further restricting the time or that are relevant to this question are sections manner in which its members must obtain initial or additional margin in customers' accounts because of 7 (b) and 7 (e) which are given below: transactions effected in such accounts, or requiring "(b) Maintenance of credit. Except as otherwise such members to secure or maintain higher margins, specifically forbidden by this regulation, any credit or further restricting the amount of credit which initially extended without violation of this regulation may be extended or maintained by them, or (2) modmay be maintained regardless of (1) reductions in ify or restrict the right of any creditor to require the customer's equity resulting from changes in mar- additional security for the maintenance of any credit, ket prices, (2) the fact that any security in an ac- to refuse to extend credit, or to sell any securities or count ceases to be registered or exempted, and (3) property held as collateral for any ioan or credit any change in the maximum loan values or margin extended by him." National Defense Advisory Commission Meeting of the Presidents' Conference On May 30 the President of the United The Presidents of all Federal Reserve States appointed a National Defense Advisory Banks met in Washington on May 27 for the Commission for the purpose of expediting purpose of discussing subjects relating to the and coordinating production, distribution and operations of the Federal Reserve Banks. transportation of the nation's resources in Meeting of the Federal Open Market Committee preparation for any emergency the United The Federal Open Market Committee held States may face as the result of war abroad. its second meeting of the year in Washington The members of the Commission are William on May 27 and 28 at which consideration was S. Knudsen, President of General Motors given to the open market policies of the Sys- Corporation; Edward R. Stettinius, Jr., tem in the light of current conditions affectpreviously Chairman of the United States ing the securities market. Steel Corporation; Sidney Hillman, President of the Amalgamated Clothing Workers Resignation of Branch Director Union; Chester C. Davis, member of the The Board of Governors on May 18, 1940, Board of Governors of the Federal Reserve accepted the resignation of George S. Harris System; Ralph Budd, President of the Chi- as a director of the Charlotte Branch of the cago, Burlington and Quincy Railroad; Leon Federal Reserve Bank of Richmond. Mr. Henderson, member of the Securities and Ex- Harris, who tendered his resignation because change Commission; Miss Harriet Elliott, he ceased to be a resident of the territory Dean of Women at the University of North served by the Charlotte Branch, had served Carolina. Temporary offices for the Commis- as a director of that Branch since his appointsion have been provided in the Federal Re- ment by the Board on December 31, 1936. serve Building in Washington. Previously Mr. Harris had served as a Class C director of the Federal Reserve Bank of Meeting of the Federal Advisory Council Atlanta during the period January 1, 1928- The second meeting of the Federal Advis- July 22, 1933. ory Council during the current year was held in Washington on May 19-21. On May 20 and Death of Managing Director 21 the members of the Council met with the Ralph H. Buss, Managing Director of the Board of Governors for discussion of various Detroit Branch of the Federal Reserve Bank matters which the Council had under con- of Chicago since July 1,1934, died on May 26, sideration. 1940. JUNE 1940 533 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Current Events Admissions of State Banks to Membership in the Federal Reserve System The following State banks have been ad- North Carolina mitted to membership in the Federal Reserve Wadesboro—The Bank of Wadesboro. System during the period January 1, 1940 Ohio to May 15, 1940, inclusive. Arlington—The Farmers and Merchants Bank Company. Alabama Bowling Green—The Bank of Wood County Montgomery—Union Bank & Trust Company. Company. Canton—The First Trust & Savings Bank of Illinois Canton. Dupo—Dupo State Savings Bank. Lorain—The City Bank Company. Mounds—The First State Bank of Mounds. Marblehead—Marblehead Bank Company. Minerva—The Minerva Banking Company. Indiana The Minerva Savings & Bank Company. Berne—First Bank of Berne. Mount Sterling—The Sterling State Bank. Bloomfield—Bloomfield State Bank. New Knoxville—The Peoples Savings Bank. Linden—Linden State Bank, Oldenburg—The Farmers and Merchants State Pennsylvania Bank. Paradise—State Bank of Paradise. Pendleton—The Pendleton Banking Co. Roachdale—Roachdale Bank and Trust Com- South Dakota pany. Sioux Falls—Union Savings Bank. Scottsburg—The Scott Ceunty State Bank. Texas Kansas Brenham—Washington County State Bank. Dumas—First State Bank. Kinsley—The Kinsley Bank. Kerrville—First State Bank. Monahans—First State Bank. Michigan Muleshoe—Muleshoe State Bank. Bark River—The Bark River State Bank. Rankin—The First State Bank of Rankin. Caledonia—The State Bank of Caledonia. Roby—Citizens State Bank. Morrice—The Morrice State Bank. Spur—Spur Security Bank. Talpa—The First State Bank. Minnesota Sleepy Eye—State Bank of Sleepy Eye. Virginia Christiansburg—Bank of Christiansburg. Missouri Waynesboro—The Citizens-Waynesboro Bank California—The Farmers and Traders Bank of and Trust Company. California, Mo. Washington Crane—The Bank of Crane. Keytesville—Bank of Keytesville. Ridgefield—Ridgefield State Bank. West Virginia New Jersey Quinwood—The Bank of Quinwood. Egg Harbor City—Egg Harbor City Trust Com- Union—The Bank of Monroe. pany. New York Wisconsin Nyack—Nyack Bank and Trust Company. Menomonie—The Kraft State Bank. 534 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Hanklna JLaw5 and •QnnuaL /2eiaott ofi the Sank ofi The annual report of the Bank of France 178 francs. In January 1939, the monthly for the year ending December 21, 1939, was average fell to 177.03; thereafter it exsubmitted to the general meeting of stock- perienced a small but continuous decline, holders on January 31, 19^0. The main text partly in response to the movements which of the address of the Governor of the Bank, affected the British exchange on the New M. Pierre Fournier, is given in translation York market; by August the average had herewith:x dropped to 176.42. The dollar, which in the At the moment when, for the second time autumn of 1938 had reached the peak rate within a quarter century, France found her- of 38.46, in January moved between a maxiself forced to take up arms, she began to reap mum of 38.17, and a minimum of 37.81*4; the fruits of the strenuous effort which she from then until the eve of the war it fluchad undertaken to restore her economy and tuated only within narrow limits, the monthly her finances, to stabilize her currency, and to average becoming stabilized from February speed the adjustment of her activities to the on between 37.77 and 37.74. The slightness new conditions created by the events of re- of these variations testifies to the stability cent years. Important results were achieved; attained by our currency in relation to gold. they contributed largely to the power of re- This trend was paralleled on the forward sistance which the country was to demon- exchange market, relieved of all speculative strate in the face of the difficulties involved activity from November on. The threein the mobilization and the first months of months' discount on the pound and the dollar, hostilities. which had risen to 18.4 per cent and 19.2 per The franc and the exchanges.—These re- cent respectively on October 4, 1938, declined sults were to appear first and almost imme- in November and December to considerably diately in the monetary field, sensitive above more moderate levels. During the first eight all to influences of a psychological nature. months of the year 1939, the discount on the Beginning in November 1938, the foreign ex- pound ranged between 2.1 per cent and parchange market confirmed the movement of ity, even reaching a premium at times; for confidence inspired, at home as well as beyond the dollar the discount only once touched 4.7 our borders, by the new recovery program per cent and on some days fell below 1 per which the Government had just outlined, and cent. by the energy of the actions which immedi- The disappearance of the abnormal differately followed. From that time on, the franc ences between the spot and forward rates showed a firmness which continued to in- emphasized the entirely spontaneous characcrease during the first eight months of 1939. ter of the improvement which occurred in the Rates on the pound sterling, without hav- position of the franc. The Stabilization Fund, ing at any time exceeded the figure of 179 which has endeavored, as in preceding years, francs which the President of the Council to moderate the fluctuations of the market, assigned in May 1938 as the limit of depre- has repeatedly found its interventions reciation of the franc, reached a level in No- warded by a return flow of gold, the result vember of the same year somewhat above of the movement which since November 1938 has brought capital back to France. During 1 The report, available in French, contains in addition a section on personnel and tables showing the operations of the Bank in this entire period, indeed, the inflow of capdetail. Brief passages relating to administration of the Bank, ital did not cease: the grave political events war service of the staff, etc., have been omitted from the translation. For earlier reports see BULLETIN for April 1939, 1938, which have repeatedly disturbed the interna- 1937, March 1936, etc. JUNE 1940 535 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Banking Laws and Reports tional markets and caused loss of gold from of the issues of short term paper by the Treasseveral European countries, have sometimes ury, nor to respond to the volume and rapidretarded the flow; they have never stopped it ity of the transactions which this entailed. for long. In the absence of statistics con- Efforts for the correction of this situation cerning the capital thus repatriated, it is had been begun by the Bank in February possible to make a rough estimate of its vol- 1935 with the inauguration of the system of ume from the movements of the gold reserve thirty-day advances on Treasury bills. A of the Stabilization Fund. From the end of similar purpose moved us when, in 1938, we October to the end of December 1938 it undertook open-market purchases and sales showed net receipts amounting to 8,700,000,- of short-term public bills and eligible private 000 francs; for the period from January 1, bills, as authorized by the decree-law of June 1939, to the end of August, net receipts were 17, 1938. more than 17,000,000,000 francs. Throughout the year 1939 we have con- To absorb quantities of gold which ex- tinued such interventions on the money marceeded its original resources, the Stabiliza- ket whenever circumstances appeared to retion Fund found a supplementary supply of quire them. Our portfolio of "bills bought liquid funds in the advances without interest in France," which appeared as 1,909,000,000 which the Treasury was authorized to grant francs on the last balance sheet for 1938, had to it, and in the proceeds of temporary sales risen to 2,530,000,000 francs by January 26, of bullion to the Fund for the Support of 1939, thereafter fluctuating around the fig- Rentes. It proceeded on the other hand, for ure of 2,300,000,000 francs up to the end of similar reasons, to sell to the Bank in April March; at that time it rose to 3,200,000,000 a quantity of gold equivalent to 5,000,000,000 francs, but it was to fall below 3,000,000,000 francs; another sale of equal amount was francs some weeks later and to remain there made at the end of July. Consequently our until the middle of August. reserve which, since November 14, 1938, had These interventions of the Bank directly appeared on the balance sheet as 87,264,000,- and indirectly favored the free play of the 000 francs, rose to 97,266,000,000 francs. At money market and contributed to the ease the outbreak of war, it represented a weight which it has manifested throughout the year. of gold double that held by the central bank They have effectively aided the lowering of in July 1914. money rates which had already become evi- Interventions on the money market.—This dent at the end of 1938, and have made it repatriation of capital could not fail to affect possible to avoid abrupt reactions which, in the volume of market funds through the auto- a market left to itself, might have been prematic creation of francs which it involved. cipitated on several occasions by the vicissi- If part of these francs served to repay dis- tudes of international politics. In this concounts or advances granted earlier by the nection it is significant that the monthly central bank, the remainder went into cir- average of rates for day-to-day money varied culation in the form of notes, or was de- during the entire year only between 1.26 and posited in commercial and savings banks, in 1.84 per cent, compared with 1.31 and 2.81 which deposits and current accounts showed per cent in 1938; not for one day did the rate a marked and consistent increase during the exceed 2 per cent. first eight months of 1939. Government finance.—The firmness of the The mere abundance of funds, however, is franc, the abundance of funds flowing into not sufficient to enable a money market to a money market aided by technical support, discharge in full the responsibility resting and the reasonableness and stability of shortupon it. It is also necessary that it be pro- term money rates provided eminently favortected against the disturbance to its activity able conditions for the restoration of public which may be caused by the repercussions of finances, which constituted one of the essenforeign events, abrupt displacements of tial features of the Government's program. funds, or maturities of large amounts. In Equilibrium of the ordinary budget having this respect, the French money market was been achieved, thanks to an economy program for a long time imperfectly organized; it did and to the creation of fiscal receipts to a not possess the flexibility necessary to cope total amount of 16,000,000,000 francs, there with the volume which the total of credit in- remained to be covered by borrowing pnly struments had attained, especially by reason the extraordinary expenses, devoted princi- 536 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Banking Laws and Reports pally to the execution of a vast program of its balance and to respond more fully to the armament, the extension of which was ren- needs of private business. Private concerns dered imperative by circumstances. Though utilized the occasion thus provided to increase the burden thus imposed on the Treasury was their resources, as is evidenced by the conheavy, these extraordinary expenses were siderable volume of obligations issued duHng easily financed by normal means of credit, the first half of 1939. Beginning in Decemwith no new call upon the Bank for advances ber 1938, a sharp revival occurred on the until after the outbreak of hostilities. On Paris Bourse affecting French securities in August 31, 1939, the net amount which the general. A reaction followed, under the in- State had thus obtained since the beginning fluence of uneasiness over the foreign situaof the year exceeded 25,000,000,000 francs. tion, and in the course of further fluctuations These funds had been raised largely through prices failed to return to the level reached at repeated issues of short-term Treasury bills. the beginning of the year. The strength of the demand for these se- The terrain won was not, however, to be curities enabled the State to find purchasers entirely lost, so long as hope for the conat very moderate terms. The rate for ordi- tinuation of peace could still be held. The nary bills, reduced from 3 per cent to 2% index of French securities of variable income, per cent on November 18 and then by suc- which from 205 in October 1938 had risen cessive steps to 1^2 Per cent on December 12, to 244 in December, still held at 234 in July 1938, underwent only one increase, of one- 1939; the index of fixed-income securities— half of one per cent, up to the end of August; obligations and rentes—moved from 78.3 to within the same period rates for bills matur- 88.3 and then to 84.3; one month before the ing in 6 months, 1 year, and 18 months did war, the 4 per cent loan of 1918 offered a yield not exceed the maxima of 21/£, 2%, and 3!/2 of 5.11 per cent, against 5.55 to 6.31 per per cent respectively. cent for the first eight months of the preced- While making use of the opportunity af- ing year, 5.48 in October 1938 and 4.68 in forded to the Treasury by the expansion of December. the floating debt, the Minister of Finance was These various figures show the power of properly desirous of lengthening its maturi- recovery which our financial market had in ties. It was with this purpose that the Au- reserve and which only adverse circumstances tonomous Office of Amortization began on prevented it from exercising in full. Fur- May 1 the issue of three-year notes and sus- thermore if it was forced to give ground to pended on July 1 the issue of its two-year some degree, it was thereby only the better notes, which were promptly replaced by prepared to resist the test which the war was Armament Notes of the Autonomous Office soon to impose upon it. of National Defence. Economic activity.—While monetary and Similar considerations, as well as the grow- financial recovery was being consolidated, the ing popular favor shown to relatively long- general economy showed a most promising, term Government issues, prompted the Treas- if somewhat slower, improvement. The reury, in the spring of 1939, to enter the capital adjustments in the fields of prices and labor, market for a large long-term credit operation. the reestablishment of more harmonious re- A 5 per cent loan maturing in 40 years, issued lations between employers and employees, on May 15 at 98, supplied in a few hours the measures to encourage the spirit of entersum of 6,000,000,000 francs, the announced prise, fiscal relief, and more favorable credit limit of cash subscriptions, and assured in conditions were so many separate factors addition the direct consolidation of 4,500,- calculated to stimulate the progress of pro- 000,000 francs of the outstanding floating duction and trade. debt which was accepted in payment of a The index of production of the Statistique second tranche. The success of this issue, Generate of France, based on 1928, marked in the marketing of which the Bank actively a consistent advance continuing the trend participated, testifies most convincingly to begun in November 1938; from 86 in Decemthe strength of our resources and the pa- ber it rose to 100 in June. The production of triotic fervor of the nation. coal in the first half of 1939 reached 26,- Security markets.—By postponing for a 013,000 tons, against 23,690,000 for the corretime any issue of long-term loans, the State sponding period of the preceding year. In had given the financial market time to recover the same time steel production increased 22 JUNE 1940 537 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Banking Laws and Reports per cent, rising from 3,230,000 to 3,962,000 with our overseas territories. Their vast retons. Production in the chemical and auto- sources of foodstuffs and raw materials could mobile industries was maintained at the level contribute to a further lightening of the burreached in 1938 after a considerable advance. den of our foreign payments. In the textile industries and in construction, Banking service to business.—Faithful to the indexes rose from 87 and 63, respectively, its traditions, the Bank has not failed to lend in December 1938, to 105 and 84 in July 1939. its full cooperation to the effort for business The index of wholesale prices registered recovery. It has utilized all possible means only slight changes during this period; from of benefiting production and commerce by the 684 in December 1938 it had fallen to 674 in lowering of money rates, to which it con- August after touching the maximum of 689 tributed directly by reducing its discount rate in January. Its components had, indeed, on January 3, 1939, from 2^ to 2 per cent shown divergent movements in the interval, and maintaining it at this level throughout agricultural products falling 10 per cent the year. while prices of industrial products increased The facilities which the Bank has freely on the average by 6 per cent. Retail prices, offered, within the scope of its statutes, for after the advance they had made the preceddiscounting short-term commercial paper ing year, showed a tendency toward stability; were utilized only in relatively restricted the index stood ati 764 in August against 754 amounts, however, up to the approach of war, in December 1938. the abundance of funds in the market allow- On the whole, French prices remained, at ing holders of bills to limit their recourse to the current rates of exchange, markedly the central bank. lower than those in the principal foreign During the period from the beginning of markets. They offered to our foreign comthe year to the second half of August, our merce opportunities which improved condiportfolio of commercial bills and of public tions of production enabled it to utilize to bills ranged between 6,213,000,000 francs on the full. January 26, and 3,784,000,000 francs on Balance of payments.—The deficit in our June 1. The average figure was about 4,900,balance of payments, which had risen in the 000,000 francs. first seven months of 1938 to 7,977,000,000 As heretofore, agriculture has obtained francs, was only 5,627,000,000 francs in the from the Bank all necessary credits for corresponding period of 1939. The value of financing the wheat harvest. The portfolio imports showed an increase of 893,000,000 of bills arising out of the 1938 harvest, enfrancs, say 6 per cent, arising entirely from dorsed by the cooperatives and guaranteed by the change which had occurred in the interthe Wheat Office, rose to 1,804,000,000 francs national value of our currency; their volume, at the beginning of the year; after reaching however, underwent a decrease of 12 per cent, affecting chiefly raw materials, thanks to the the maximum of 2,408,000,000 francs on development of our mineral production. By August 10, it was reduced to 1,708,000,000 contrast the increase of 28 per cent in the francs on August 31, the date of final mavalue of our exports, which rose from 11,777,- turity. The unabsorbed surplus of the 1938 000,000 to 15,020,000,000 francs, coincided harvest rendered difficult the immediate rewith an increase of 5 per cent in the tonnage tirement of these obligations. The Bank of goods dispatched. agreed to lend its assistance to the National The progress thus manifested in our com- Agricultural Credit Bank, under the terms of mercial relations with foreign markets was the decree of July 29, 1939, for the payment still more marked in the interchange between of bills which the latter had negotiated at the the mother country and the colonies. This Bank. The total of warrants thus discounted, affected both imports, which were expanded the amortization of which will be completed by more than 1,000,000,000 francs, and ex- in the course of the year 1940, was 1,700,ports, which increased by 1,430,000,000 000,000 francs. francs, the percentage of increase in value Foreign trade profited by the aid which being, in both cases, about equal to that in the we began to give several years ago in mobiliztonnage. It cannot be too earnestly hoped ing both acceptance credits opened by banks that there may be a continuation and increase for exporters and frozen credits at the Comof this happy development of our commerce pensation Offices. 538 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Banking Laws and Reports Pre-war note circulation.—Although dur- torium. Only mobilized reservists were auing the early part of 1939 the volume of the thorized to postpone the payment of their Bank's credit operations did not expand, the debts. For all other categories of debtors, total of notes in circulation showed a marked settlement dates were maintained, with only increase. After fluctuating for several weeks a brief postponement for the dates of presenaround a figure of 110,000,000,000 francs, it tation of commercial bills, because of the diffirose suddenly during the month of March and culties confronting their payment on the due by the end of April reached the figure of date. 125,000,000,000 francs. There was no signifi- In these critical hours the French credit cant change until shortly before the outbreak mechanism gave proof of its power and of war; on August 17 the figure was 123,134,- flexibility. Commercial and savings banks 000,000 francs. freely paid out over the counter all with- The date on which this trend became evi- drawals of deposits which were called for; dent indicates its character. It appeared, in- the volume of such demands, though not indeed, as the consequence of apprehensions considerable, was kept within limits by the aroused by events abroad which occurred in promptness with which they were met. March, and of the anxiety felt by many The cooperation of the Bank with these private citizens and business concerns to sup- institutions and, in general, the aid given to ply themselves in advance with liquid funds the national economy to enable it to cross a ready for use in any eventuality. particularly difficult pass, were evidenced by While the fiduciary circulation thus ex- a marked expansion of its portfolio. Between panded during the first part of 1939 by some August 17 and September 7, the increase was 13,000,000,000 francs, this increase differed more than 14,000,000,000 francs. At the from such expansions as have occurred at same time the item for 30-day advances rose other times in that it was strongly secured, from less than 400,000,000 francs to more having an almost complete counterpart in the than 2,400,000,000 francs. 10,000,000,000 francs added to the Bank's The character of the credit demands we cash reserves; also it remained much smaller were meeting and the imperative need which than the amount by which, in the same period, created them, decided us against any change the gold reserves of the nation had been en- in our discount rate, especially since no flight larged through the return flow of capital. of capital was occurring. Accordingly this Adjustment to war conditions.—The war remained fixed at 2 per cent, whereas on imposed on the Bank new and heavy obliga- August 1, 1914, it had had to be raised to 6 tions. The Bank was ready to assume them, per cent and later was held at 5 per cent for thanks to the experience of the past and to a number of years. the unceasing vigilance long made imperative Events were to justify this decision. by the trend of international political develop- Thanks to the calm and self-possession mainments. tained by the nation, withdrawals from the The abrupt aggravation of diplomatic ten- commercial and savings banks stopped early sion in the last ten days of August, the meas- in September. They were soon succeeded by ures of mobilization which followed, and a steady stream of deposits, and by the end of finally the outbreak of hostilities, aroused that month the balance sheets of the principal urgent demands for liquid funds. Never- financial institutions were already showing theless, however urgent the demand may have figures higher than those of August 31. The been, at no time did it degenerate into panic. savings banks also benefited by a similar re- Not for a single day did the Stock Exchange turn of funds. close its doors; trading was carried on in an At the same time, as a result of these orderly manner, both for cash and for future movements, the Bank found its volume of delivery, without outside aid. The inevitable discounts reduced. Its portfolio, which in the weakening of prices was confined within September 14 statement already showed a limits which may fairly be described as decrease of 2,000,000,000 francs, continued moderate, and it did not extend beyond a this trend until the middle of November; brief period; it was to be followed by a marked from that time on it remained in the neighrecovery, led by the rise in quotations for borhood of 7,000,000,000 francs, comparable rentes and other Treasury securities. The to the level at the beginning of the year. country was spared the ordeal of a mora- On the other hand the item 30-day advances JUNE 1940 539 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Banking Laws and Reports had fallen again by the end of September to bank could supply at the outset the necessary less than 1,000,000,000 francs; at the close amount. All arrangements had been made of the year it was no higher than 236,- to provide for such a situation. On Septem- 000,000 francs. The rapid and continuous ber 29, 1938, a Convention had been signed shrinkage of our portfolio is indicative both according to which the Bank was to place at of the return to a more normal situation and the disposal of the State in case of general of the regularity with which our debtors as mobilization, temporary advances up to 25,a class have honored their signatures. It is 000,000,000 francs. It was ratified by the not in any degree to be ascribed to a restric- decree of September 1, 1939. These advances tion of the facilities accorded by the Bank to bear interest, fixed originally at 1 per cent, commerce and industry. These facilities, on but to be raised to 3 per cent one year after the contrary, have been notably extended. the cessation of hostilities. From the inter- The Bank has applied in the most liberal est determined as above the Bank will retain spirit the decree of September 1 which post- a commission of one-half of one per cent of poned the maturity of debts contracted by the amount of the advances as reimbursement mobilized reservists. In cases where the for the costs incurred by it. The Convention original debtor has been called to the colors, stipulates that the rest of the interest shall the Bank has not only avoided imposing on be entered in a special reserve account earits remitters the penalty charge on bills not marked to cover the losses which the Bank collected for this reason, but it has further may sustain on bills frozen by legal measures, offered to such debtors who met their bills or on exceptional transactions authorized by the privilege of presenting them again for law. The balance standing in this special rediscount, for successive periods of 90 days, reserve account at the time of its definitive according to their need of cash. Similarly, liquidation will revert to the State. giving consideration to the difficulties met by The credit thus opened to the Treasury certain business men not directly affected by came into use on September 21. Drawings the mobilization, the Bank has shown its made on it from that date until December 21 willingness to accept from its remitters bills amounted to 11,800,000,000 francs. arising from extensions or renewals agreed Although the Bank granted to the State upon in good faith by the coobligors there- the advances required for the general mobiunder. Putting into use the power granted lization, it is obviously necessary that no by the decree of September 9, the Bank has effort be spared to limit to a strict minimum also admitted to discount, with waiver of one the future use of these facilities. The Bank's of the signatures required by its statutes, concern in this respect harmonizes fully with bills guaranteed by the pledge of requisition the viewpoint of the public authorities. The bills. Finally, with the purpose of encourag- equilibrium of the budget of civil expendiing export trade so far as we were able, we tures, swollen by the heavy cost of allowances decided to extend to bills drawn on foreigners to the families of mobilized reservists, has and payable in foreign currencies the facil- been fully assured by the ordinary accruing ities for discount already granted to such bills revenues, but military expenditures have had drawn in francs. to be met by calling upon the funds accumu- Advances to the Government.—Not only lated in the country and constantly renewed did the Bank owe its support to private econ- by the payments made by the State itself. In omy to permit it to surmount a momentary the first days of September the flow of capital crisis and to adapt itself to new conditions to the Treasury was resumed and since then created by the war. An equally important has continued without interruption. Large duty toward the State rested upon it at a subscriptions to public bills, added to the retime when the Nation was putting its utmost sources formerly accumulated, enabled the strength into a struggle on which its very State to meet the initial expenses of the camexistence depended. paign without resorting to advances from the The extent and the nature of the charges Bank until the end of the third week of for which the Treasury had to provide in war. Remarkably moderate interest terms the existing circumstances did not permit it were maintained by the Treasury on the to find, by normal financing methods, the strength of the success of its issues. From great amount of funds which it immediately April 1939 to the end of the year, the rates required; only the cooperation of the central for the various issues of bills showed only one 540 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Banking Laws and Reports rise, which was no higher than one-fourth of funds at the public paying agencies, as for 1 per cent. The rates ranged, according to example, in the service of the Treasury to the maturities, between 2 per cent for ordinary armies. It seems, however, that it must also bills and 3^ per cent for 2-year Armament be attributed in part to the building up of notes. private reserves which occurred on the eve The Bank devoted itself to encouraging of the conflict. If considerations of prudence, this inflow of funds. It was in this spirit that born of the memory of moratorium measures it continued and intensified its regulatory adopted in 1914, could explain the precauaction on the money market, which has an tions thus taken, there is no justification at increasingly important role to play in war- present for individual hoarding; prompt paytime, in proportion to the growth in the ments by banks and savings institutions being floating debt. Our portfolio of "negotiable assured, the funds which were temporarily bills bought in France" which, on September withdrawn should resume their place in the 7, amounted to 4,331,000,000 francs, reached normal capital circuit. In the form of sub- 6,014,000,000 francs on December 14; in the scription to Armament notes these funds closing balance for the year it amounted to would not only obtain advantageous interest 5,779,000,000 francs. The Bank cooperated and a guarantee against the risks involved in actively in the placing of securities designed holding liquid funds, but above all, by lending to attract not only money market funds but their support to financing the war, they would also the capital funds of the public. Total render the most valuable cooperation in the subscriptions to Armament notes obtained by national defense. our efforts from November 1 to the end of the Banking services in war-time.—The Bank year exceeded 4,500,000,000 francs. was not unaware of the extent of the new War-time note circulation.—The need of duties which, in the material sphere, the war liquid capital at the end of August, and the would impose upon it, or of the inevitable resulting increase of credit operations of the changes in the conditions surrounding its Bank had important and lasting repercussions activity. Accordingly, careful preparations on the volume of the fiduciary circulation. had been made for its mobilization. A plan Large demands for notes occurred, which the of evacuation and of regrouping of our serv- Bank could immediately satisfy throughout ices had been drawn up in great detail. When the country, thanks to the cash reserves al- the hour arrived it was executed without diffiready held at various regional centers. The culty, in spite of the complexity of operations total of notes issued, which stood at 123,135,- involved. The measures taken at the home 000,000 francs on our balance for August 17, office evacuated from Paris almost a thousand increased sharply to 146,149,000,000 francs employees and assured the removal of about on September 7. Thereafter its fluctuations 3,600,000 securities. In districts close to the were within relatively narrow limits, the frontier, we have firmly maintained the acminimum having been 143,937,000,000 francs tivity of our branch offices without curtailon September 21 and the maximum 149,456,- ment. Only one auxiliary office, that of 000,000 francs on December 7. At the close Sarreguemines, was evacuated on military of the year the circulation stood at 149,416,- orders. The Strasbourg branch, transferred 000,000 francs. This figure includes about to a location nearby, continues its operations. 1,000,000,000 francs in small notes which the In all cities where our services remain, public Bank held in reserve and which it had placed offices and private customers continue to find, in circulation as provided by the decree of in spite of the measures of precaution which September 1, 1939. It should be noted that we have adopted, the usual reception and there was no hoarding of small coin, as in services from a personnel whose courage and July-August 1914—a further proof of the composure cannot be adequately praised. calm observed by the Nation in passing from From August 22 until the beginning of peace to war conditions. October, 161,500 deposits of securities, com- The maintenance in circulation of some prising more than a million pieces, were re- 25,000,000,000 francs in notes issued in the ceived at our various offices. This movement course of the weeks preceding the opening continued thereafter: at the present time we of hostilities doubtless responds, in some are holding 1,575,000 pieces more than last degree, to a need for monetary instruments year. resulting from the considerable movement of The rapid expansion of our commercial JUNE 1940 541 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Banking Laws and Reports portfolio, the volume of which was increased tive, and thus entirely incompatible with by more than 14,000,000,000 francs during universal regimentation, it was none the less the weeks preceding the war, has complicated obvious that it no longer met the requireand intensified the labor involved in our ments of war time. In a struggle which payment and accounting services. With- demands the mobilization of vast material drawals of notes at Paris alone rose to the means, the national life is entirely dominated neighborhood of 10,000,000,000 francs be- by the needs of national defense. All powtween August 22 and September 30, and ers, all resources, must contribute to it. attained their maximum on August 25 with Against this supreme interest, no private ina figure of 2,105,000,000 francs for a single terest, however worthy, can be allowed to preday. Also, as in September 1938, the public vail. To assure the regular financing of war utilized our services for transfers of funds, expenditures, existing funds, constantly reopening and transferring accounts, renting plenished by these same expenditures, must safe deposit boxes, and for other purposes. flow into the Treasury, to be immediately The problems of furnishing funds to pub- restored to circulation in the form of new lic offices throughout the country, rendered payments. They should not be permitted to more difficult and more pressing by reason break this circuit by leaving France. Indeed, of the costs of mobilization and requisition- any export of capital would deprive the State ing, and of supplying the army's financial of resources which it would be forced to agencies, even within the zone of military replace by advances from the central bank; operations, forced us to increase the shipment this would necessitate drawing upon a gold of notes and coins, at the very moment when stock of which no particle may be legitithe calling in of nickel coins for replacement mately utilized for any purposes other than by small notes of 5 and 10 francs necessitated payments for purchases indispensable to the more frequent trips between the home office army or the entire nation; it would thus tend and the branches. doubly to imperil the security of the cur- Finally, new duties devolved upon us be- rency. It is equally necessary that the curcause of the inauguration of exchange con- rency be not exposed to fluctuation likely to trol, the administration of which was turned arouse foreign speculation prejudicial to the over to us, and because of the supervision currency. Thus arose the necessity of strict set up over dealing in gold. surveillance of exchange operations, a sur- Exchange control.—In the realm of in- veillance rendered possible and effective in ternational monetary relations, the war has war time by the controls necessarily applied entailed considerable changes and necessi- under war conditions to the movements of tated the adoption of a policy entirely dif- goods as well as of persons. ferent from that which France formerly For several months, the Ministry of Fifollowed. During the first three weeks of Au- nance had, with the Bank's cooperation, studgust, our currency profited by the favor which ied and perfected the mechanism which would it had met for several months past. Repa- insure the proper performance of this functriation of capital continued, resulting in tion if need should arise. On September 10 considerable acquisitions of gold. On August decrees were published in the Journal Officiel 21 the dollar was quoted in Paris at 37.75, the prohibiting the exportation of capital of pound at 176.72. French origin in any form, establishing ex- The events which, at this moment, sud- change control, and placing its administradenly revealed the imminence of the conflict, tion in charge of an office managed by the necessarily disturbed the exchange market. Bank of France for the account and under At the beginning of September, stability was the authority of the State. The Bank was restored: the dollar rate was fixed at Paris at the same time directed to control dealings around 43.50; the pound was quoted in New in gold, the purchase and sale, import and ex- York at 4.04, while in relation to the franc port of which thereafter became subject to it was kept at about 176 francs. its authorization. Up to that time exchange transactions had The full functioning of the organization remained entirely free. While this regime of which the Bank was directed to create could liberty was incontestably the only type befit- not be easily realized in a short time. The ting, in normal times, a country with an complexity of the new legislation, the details economic structure based on individual initia- of which had been worked out in secret; the 542 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Banking Laws and Reports flood of cases, most of which made urgent of its defenses, prepared through the effort calls for solution despite the lack of legal which the nation has wisely imposed upon precedents; the inexperience of the hastily itself, enabled it to surmount the difficulties recruited staff; all these rendered very diffi- inseparable from the beginning of a great cult the task of the Exchange Office and of the conflict and to pass safely from a peacetime institutions appointed by it as authorized regime to a war economy. Firmly secured agents. On September 11 the Exchange Of- on a strengthened metallic base, its currency fice began to function. Since then exchange has survived the shock. In the fifth month of rates have shown only very slight fluctua- hostilities it is still unshaken. tions, being determined by the Bank of The public authorities have affirmed their France where all the orders for and sales desire to safeguard this essential element of foreign exchange are finally executed. of national strength. Measures have been For the pound and the dollar they have been adopted which tend to reduce purchases maintained firmly at 176.62i/ and 43.80. abroad, to direct them preferably toward 2 During the same period, rates on the New markets where settlement is least burden- York market where the franc has been freely some, to encourage exports, to develop protraded, showed only moderate divergence duction, and to restrict consumption. Infrom the official rates of our market. The creased taxes covering the normal budgetary New York quotation, which rose at one time expenditures will contribute to the same reto 46.19, returned to 44.54 on December 30. sult. The appeal to existing funds to finance The stability of our currency has been the costs of war should enable the State to supported by the repatriation of capital conduct its borrowing operations within the which, though interrupted for a few days at limits of the outstanding monetary circuthe opening of hostilities, was shortly after- lation. ward resumed. Stimulated by the option, Realizing its responsibilities, the Bank will open for a certain limited period to French devote itself to the limit of its powers to citizens to declare or to bring home their prosecuting the work of monetary defense. holdings abroad, these repatriations brought This undertaking, however, cannot be accoma new access of gold and foreign exchange plished without the participation of the whole to the Stabilization Fund; they enabled it nation. Its success requires the spontaneous to remain abundantly supplied after four and intelligent cooperation of all Frenchmen. months of war, in spite of the volume of pur- Every citizen must be convinced that freely chases for national defense needs which it accepted privations and material sacrifices had to cover abroad. are necessary at an hour when still heavier A new element of strength was added to sacrifices are demanded of those at the front; the currency by the close economic and finan- that to forego a satisfaction, to restrict concial cooperation which recent agreements sumption, is to release forces for the produchave established between Great Britain and tion of war materials, reduce the deficit in France. The resolution to maintain the soli- the balance of payments, economize our gold darity of the pound and the franc, the free- reserves, and participate in the defense of the dom of exchange between the two Empires, currency. A generous response to the Treasthe pooling of their resources in products ury's call for funds is the most effective form necessary to the conduct of the war, a unified of participation. No one in the present cirpolicy for purchases abroad, an equitable cumstances is justified in hoarding unproducapportionment of costs; these constitute in tive funds. All capital, all resources, should the interests of both nations achievements of be placed at the service of the national extreme importance which form a mutual defense. pledge of success. There is not the slightest doubt that the Defense of the franc,—Forced into a war nation understands the duty resting upon it, in which the preservation of independ- and the magnitude of the effort which reence demands the unlimited use of all its mains to be accomplished. However hard and wealth and energy, our country finds itself in long this effort may perhaps become, it does a strong position in the financial field, where not exceed the potentialities of a people which the conflict, less spectacular than in the mili- is characterized by industry and thrift and tary field, but equally crucial, will have to be which has given throughout a glorious history pursued relentlessly to victory. The strength manifold proof of its patriotism. JUNE 1940 543 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BALANCE SHEET OF THE BANK OF FRANCE AS OF DECEMBER 21, 1939, AND DECEMBER 22, 1938 [In thousands of francs] Dec. 21, Dec. 22, Dec. 21, Dec. 22, Assets 1939 1938 Liabilities 1939 1938 Gold reserve (coin and bullion) 97,266,718 87,264,778 Demand liabilities: Silver and copper coins 905,047 540, 236 Notes in circulation 149, 416, 352 108, 531, 713 Funds available on demand abroad. 44,243 16, 450 Current account of the Treasury 95,872 Foreign bills: Current account of the Caisse Auto- Negotiable- _ 39,143 781,381 nome d'Amortissement 1,897,612 2, 241,047 Other. _ 29,335 22,158 Other current accounts and deposits.... 13,143, 401 26,163,055 Domestic bills: Other demand liabilities.. 243, 921 126, 052 Negotiable (decree of June 17, 1938) 5, 779,067 1, 909,067 Capital _. __. 182,500 182,500 Other 4, 677, 203 7,442,274 Surplus (laws of June 9,1857, and Nov. 17, Agricultural bills and warehouse receipts 1897) 303, 231 303, 231 endorsed or guaranteed by the National Reserve invested in legal securities (law of Wheat Board (law of Aug. 15,1936, decree May 17, 1834; decree of Apr. 27 and May of July 29, 1939) 2,345,000 1,793,577 2, 1848; law of June 9, 1857) 22,106 22,106 Advances against securities 3, 563, 775 3,639,626 Depreciation reserve (real estate) 4,000 4,000 Advances for 30 days against Government Profit and loss: securities having a maturity of not more Provision for pensions to staff. 8,000 than 2 years _ _ 236,365 447, 526 Amortization of bills in suspense 7,193 Postal current accounts _ 1,134,401 641,281 Provision for payment to the Govern- Negotiable bills of the Caisse Autonome ment of an amount equal to excess of d'Amortissement (convention of June 23, annual dividend over 240 francs net__. 1,792 1928, and Dec. 7, 1931) _._ 5,455,380 5, 530, 254 Gross dividends (160 francs per share)i_. 29,200 29, 200 Loans to the Government without interest Carried forward _._ 13,800 13, 760 (law of June 9,1857; convention of Mar. 29, Miscellaneous liabilities 2,429,303 2, 300,112 1878; law of June 13, 1878, extended; laws of Nov. 17, 1897, Dec. 29, 1911, Dec. 20, Total liabilities.. 167, 796, 491 143, 587,956 1918, and June 25,1928; convention of Nov. 12, 1938; decree of Nov. 12, 1938). 10,000,000 10,000,000 Temporary noninterest bearing advances to the Government, redeemable in accordance with Art. 8 of the convention of Nov. 12, 1938 (decree of Nov. 12, 1938) 20,472,990 20,627,441 Temporary advances to the Government (convention of September 29, 1938, approved by the decree of September 1,1939). 11,800,000 Rentes earmarked for special purposes 112,981 112,981 M Ba is n c k e l b la u n il e d o i u n s g s a s a s n e d ts equipment 3, 930 4 , ,0 8 0 4 0 2 2,814 4 , ,0 9 0 2 0 5 T R o a t t a io l d o e f m go a l n d d r l e i s a e b r i v li e t ie to s demand liabilities 164, 797,158 140, 731,255 Total assets 167, 796,491 143, 587,956 (percent) 59.02 62.01 i For the second half year 1939. Gross dividend for first half year 1939, 160 francs per share. In accordance with the decree-law of Nov. 12, 1938, which established the new rate of taxation on the income from French registered shares, the net dividend for the year on shares of the Bank of France was 233.60 francs for shares subject to 27 per cent tax, and 262.40 francs on shares subject to 18 per cent tax. Revaluation of the (fold Stack of tAe Mathetland* £ank A bill providing for the revaluation of the Act of March 16, 1940 (Staatsblad No. 402), congold stock of the Netherlands Bank and for taining temporary provisions with regard to the the utilization of the resulting gold profit was valuation of the stock of gold coins and gold bullion of The Netherlands Bank and regulation of the conenacted on March 16 and came into force sequences of those provisions. on March 31, 1940. The new rate of valua- Article 1—The Netherlands Bank shall revalue its tion of bullion and coin held by the Bank is stock of gold coins and gold bullion at 2,009.00 2,009.00 guilders per fine kilogram, as against guilders per fine kilogram. the rate of 1,647.50 guilders per fine kilogram Article 2—The additional value, resulting from the at which the gold had been valued since the revaluation referred to in article 1, is appropriated abandonment of the gold standard in Septem- as follows: ber 1936. This change resulted in an increase (a) 7,629,959.16 guilders is credited in the books in the book value of the Bank's gold holdings of The Netherlands Bank to the account "Netherof about 222,000,000 guilders. lands Government (Act of May 27, 1932 Staatsblad No. 221)", which account shall be closed by this At the new rate the guilder is valued for entry; the Bank's purposes at the equivalent of ap- (b) 3,302,654.57 guilders is added to the reserve proximately 56.01 U. S. cents, representing a fund of the Bank; depreciation of about 18 per cent below the (c) 3,000,000.00 guilders is added to the special former level assigned to the guilder in valuing reserves of the Bank; the gold stock. No stabilization of the unit (d) 132,506,208.49 guilders is credited to the acat the gold valuation rate, however, was at- count of the Treasury in the books of The Nethertempted in the new measure. The exchange lands Bank in order to be used for a purpose to be indicated by law; quotation of the guilder on the New York market in March and April 1940 fluctuated (e) the sum which remains after the entries referred to under (a), (b), (c) and (d) have been slightly above 53 U. S. cents. made, is credited to the fund established by the Act An unofficial translation of the Act of of September 30, 1936 (Staatsblad No. 402). March 16, furnished by the Netherlands Article 3—This act comes into force on March 31, Bank, is given herewith: 1940. 544 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A/atlonal Summatu oft £u&ine55 (condition* Compiled May 15 and released for publication May 17. Figures shown on charts may differ from preliminary figures used in text. Later developments are discussed on pages U89—U9U of this BULLETIN. I NDUSTRIAL activity was steady during what less than the usual seasonal increase. April after three months of sharp decline, In the machinery, aircraft, and shipbuilding and in the first half of May increases appeared industries activity continued at the high rate in some lines, particularly steel. Prices of of other recent months. basic commodities showed mixed changes to- In the textile industry activity at cotton ward the middle of May, accompanying the and woolen mills declined somewhat further extension of active warfare in Europe, while in April, following considerable reductions stock! prices declined sharply. in March. At silk mills activity remained at a low level, while rayon production was main- Production tained at a high rate. Output at meat-packing establishments continued in large volume. The Board's seasonally adjusted index of There was some further curtailment in shoe industrial production for the month of April production in April; in most other industries was 102, compared with 104 for March and producing nondurable goods changes in out- 109 for February. Steel ingot production put were largely seasonal in character. was steady during April at slightly over 60 Coal production, which usually declines per cent of capacity as compared with an sharply in April, showed only a small decrease average rate of 64 per cent in March; in the this year. Output of crude petroleum, which first half of May output rose sharply and had reached record high levels in March, was currently is scheduled at about 70 per cent largely maintained in April and the first half of capacity. Automobile production in April of May, although stocks of crude oil were incontinued at about the March rate, although creasing and gasoline stocks were unusually ordinarily there is an increase at this season, large. and in early May declined somewhat. Retail Value of construction contract awards insales of new cars approximated production creased further in April, reflecting princiin April and dealers' stocks of both new and pally a rise in contracts for private building, used cars remained at earlier high levels. according to figures of the F. W. Dodge Cor- Output of plate glass, used largely by the poration. Awards for private residential automobile industry, declined considerably in building were in somewhat larger volume April, and lumber production showed some- than a year ago. Private nonresidential building was about one-third greater than at this season last year and was near the pre- 1NDUSTRIAL PRODUCTION POINTS IN TOTAL INDEX POINTS IN TOTAL INDEX vious peak level reached in mid-1937. Awards for public construction, however, were considerably below the level of last spring. Distribution Distribution of commodities to consumers showed little change in April and the first half of May. The Board's seasonally ad- 40 justed index of department store sales was 90 per cent of the 1923-1925 average in April, 20 " \J 20 about the level that has prevailed since the first of the year but below the peak of 96 1934 1935 1936 1937 1938 1939 1940 reached last December. Index of physical volume of production, adjusted for seasonal Total freight-car loadings in April were in variation, 1923-1925 average = 100. JUNE 1940 545 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

National Summary of Business Conditions about the same volume as in March. Ship- advanced from May 10 to May 14. Increases ments of coal declined less than seasonally, in this period were particularly marked for while loadings of miscellaneous freight, which imported materials, such as rubber, tin, and include most manufactured products, showed silk. Grain prices rose at first but subsequently showed sharp declines. Price changes FREIGHT CAR LOADINGS for other commodities were mixed; steel P 1 O 0 I 0 N T I S IN TOTAL INDEX POINTS IN TOTAL I i N i D o E o X icrap advanced, while cotton declined considerably. Prices of certain steel products, which 80 had been reduced early in April, were re- V stored to earlier levels on May 1, and producers announced that steel purchased at the 60 60 ower prices must be taken by the buyers on or before June 30. 40 40 Government Security Market £0 20 Prices of United States Government securities declined sharply from May 10 to May 1934 1938 1940 14, accompanying the further spread of war Index of total loadings of revenue freight, adjusted for seasonal in Europe. Prices of long-term Treasury variation, 1923-1925 average = 100. bonds on May 14 were 3% points below the less than the sharp rise that is customary at high point reached on April 2. The yield on this season. In the early part of May in- the 1960-65 2% per cent bonds rose from creases were reported in shipments of most 2.26 per cent on April 2 to 2.48 per cent on classes of freight. May 14. Bank Credit Foreign Trade Total loans and investments at reporting Exports of United States merchandise, member banks in 101 leading cities increased which have been at a high level since last during the four weeks ending May 8. Most December, declined somewhat in April. A large part of the decrease in April was accounted for by the complete cessation of ship- MONEY RATES IN NEW YORK CITY ments to northern European countries after outbreak of hostilities there, but declines were also reported in shipments to most other countries. Exports to Canada, the Union of South Africa, and France, however, increased. Shipments of commercial vehicles declined sharply, following a considerable rise in March, and exports of iron and steel products, which had been increasing steadily since last summer, also showed a decline. Exports of cotton and copper decreased further from earlier high levels, while machinery and 1934 1935 1936 1937 1938 1939 1940 aircraft shipments continued in large volume Minimum rate on rediscounts for and advances to member During April, the monetary gold stock of banks by Federal Reserve bank; weekly averages of daily yields of 3- to 5-year Treasury notes and Treasury bonds callable after the United States increased by $337,000,000 12 years, and average discount on new issues of 91-day Treasury the largest increase since August 1939. Ac- bills offered within week. For weeks ending January 6, 1934, to May 18, 1940. quisitions of gold in the first two weeks of May totaled $169,000,000. of this increase was at New York City banks and reflected purchases of United States Gov- Commodity Prices ernment obligations. Deposits and reserves Prices of a number of basic commodities of banks in leading cities continued at record which had been declining after a rise in April high levels. 546 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FINANCIAL, INDUSTRIAL, AND COMMERCIAL STATISTICS UNITED STATES PAGE Member bank reserves, Reserve Bank credit, and related items 549 Federal Reserve Bank discount rates; rates on time deposits, reserve requirements 550 Federal Reserve Bank statistics 551-555 Reserve position of member banks; deposits in larger and smaller centers 556 Money in circulation 557 Gold stock and gold movements; bank suspensions; bank debits 558 All banks in the United States, number, deposits, loans and investments 559 Condition of all member banks 560-561 Weekly reporting member banks 562-565 Commercial paper, bankers' acceptances, and brokers' balances 566 Money rates and bond yields 567 Security markets 568 Treasury finance 569-570 Governmental corporations and credit agencies; Postal Savings System 571-572 Production, employment, and tradi 573-581 Wholesale prices 582 Statistics for Federal Reserve chart book 583-584 Number of banks and branches in United States, 1933-1939 584 Analysis of changes in number of banks and branches, January 1-March 31, 1940 585 Retail installment paper held by insured commercial banks 586-587 Member bank operating ratios, 1939, by Federal Reserve districts 588-601 Commercial banks 602-606 All member banks—Condition on March 26, 1940 607-608 Tables on the following pages include the principal available statistics of current significance relating to financial and business developments in the United States. The data relating to the Federal Reserve Banks and the member banks of the Federal Reserve System are derived from regular reports made to the Board; index numbers of production are compiled by the Board on the basis of material collected by other agencies; figures for gold stock, money in circulation, Treasury finance, and operations of Government credit agencies are obtained principally from statements of the Treasury or of the agencies concerned; data on money and security markets and commodity prices and other series on business activity are obtained largely from other sources. Back figures may in most cases be obtained from earlier BULLETINS and from Annual Reports of the Board of Governors for 1937 and earlier years. Current figures compiled by the Board are generally released prior to publication in the BULLETIN and press statements will be sent without charge to those wishing them. For a list of current releases see FEDERAL RESERVE PUBLICATIONS at the back of this BULLETIN. JUNE 1940 547 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MEMBER BANK RESERVES AND RELATED ITEMS WEDNESDAY FIGURES BILLIONS OF DOLLARS BILLIONS OF DOLLARS TREASURY DEPOSITS AT F. R. BANKS MEMBER BANK RESERVE BALANCES 1934 1935 1936 1937 1938 1939 1940 Latest figures for May 22. See page 549. 548 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MEMBER BANK RESERVES, RESERVE BANK CREDIT, AND RELATED ITEMS [In millions of dollars] Reserve bank credit outstanding Member Treas- bank reserve Date co B d u i i n s ll - t s ed T T o J t . a S l s . e G c t w u M u i o r n i r v i t i a t h e n i 5 - e r - g n s m t a u e f r n t 5 e i t n r g R c O b r e e a s t d h n e i e r k t v r 1 e Total s G to o c ld k T s r t e o c u r i a n n u e u r n r a c y g t d - - s y - - M i c n t u i o o c l n a n ir e - - y T h c i u r o n a e r l g s a y d h s s - - u B p s w F r e R e o a y e r r i s n e a v t d i d - k h l t e - e s s - p m N b o d e o e e s m n - i r t - s - c O s F o e R e d a t e r u r e c h e a v d n - - e - l e - t r s To b t a a l l anc c e E e s x ss - 2 years years Monthly averages of daily figures: 1939—Feb _. 2,567 1,807 760 2,594 14, 778 2,820 2,758 1,055 502 255 8,925 3,373 Mar 2,567 1,768 799 2,590 15,014 2,832 6,764 2,720 1,155 519 256 9,021 3,432 Apr. _. 2,567 1,736 830 2,593 15, 509 2,844 2,703 1,001 495 256 9,624 3,926 1940— Feb 2,477 1,213 1,264 2,546 18,061 2,976 7,426 2,361 600 732 248 12, 215 5,626 Mar 2,476 1,209 1,267 2,539 18, 310 2,986 7,488 2,362 612 759 252 12, 362 5,734 Apr __. 2,467 1,205 1,262 2,527 18, 608 2,994 7,532 2,327 554 757 256 12, 703 6,003 End of month figures: 1939—Feb. 28 2,564 1,804 760 2,598 14,874 2,824 6,731 2,740 1,148 254 3,387 Mar. 31.__. 2,564 1,734 830 2,587 15, 258 2,839 6,817 2,691 1,229 533 257 9,157 3,559 Apr. 30. _. 2,571 1,740 830 2,595 15, 791 2,849 6,905 2,699 951 545 255 9,900 4,098 1940—Feb. 29..... 2,477 1,209 1,268 2,547 18,177 2,981 7,455 2,372 562 740 247 12, 328 5,692 Mar. 3O.._. 2,475 1,209 1,266 2,529 18,433 2,990 7,511 2,371 702 691 255 12,423 5,828 Apr. 30 2,467 1,205 1,262 2,518 18, 770 2,999 7,559 2,320 446 787 256 12, 919 6,149 Wednesday figures: 1939—July 5 2,551 1,720 830 2,569 16,136 2,880 7,100 2,577 820 678 257 10,151 4,292 July 12 2,535 1,705 830 2,569 16,174' 2,885 7,041 2,552 791 257 10, 350 4,447 July 19 2,515 1,685 830 2,537 16,191 2,890 7,022 2,530 764 257 10.412 4,485 July 26 2,488 1,658 830 2,512 16, 227 2,893 7,002 2,506 742 690 257 10,436 4,485 Aug. 2 2,453 1,623 830 2,476 16, 248 2,895 7,054 2,370 662 257 10.413 4,462 Aug. 9 2,443 1,613 830 2,462 16, 270 2,897 7,070 2,354 844 597 256 10, 509 4,533 Aug. 16.... 2, 423 1, 592 830 2,453 16,335 2,900 7,091 2,366 776 565 256 10, 633 4,590 Aug. 23.... 2,423 1,592 830 2,441 16, 501 2,903 7,098 2,334 724 604 256 10.829 4,741 Aug. 30.... 2,426 1,594 832 2,448 16, 638 2,905 7,141 2,327 709 255 10,951 4,799 Sept. 6 2,594 1,667 2,643 16, 726 2,908 7,261 2,264 676 247 11,141 4,969 Sept. 13___. 2,824 1,652 1,171 2,873 16,808 2,911 7,235 2,227 615 755 234 11, 526 5,271 Sept. 20_... 2,826 1,615 1,211 2,883 16,902 2,915 7,236 2,272 619 781 242 11, 549 5,275 Sept. 27___. 2,804 1,585 1,219 2,846 16,925 2,914 7,238 2,260 552 771 242 11, 621 5,332 Oct. 4. 2,785 1,566 1,219 46 2,837 16,958 2,920 7,309 2,250 776 239 11, 672 5,359 Oct. 11 2,765 1,546 1,219 39 2,810 16,973 2,924 7,346 2,238 404 742 238 11, 739 5,399 Oct. 18 2,748 1,530 1,219 63 2,817 16,997 2,927 7,330 2,216 349 241 11,907 5,509 Oct. 25 2,736 1,517 1,219 30 2,771 17,039 2,929 7,302 2,230 326 240 11, 950 5,534 Nov. 1 2,721 1,502 1,219 38 2,765 17,099 2,932 7,352 2,250 349 790 241 11,814 5,376 Nov. 8 2,687 1,468 1,219 28 2,721 17,132 2,935 7,409 2,263 348 779 241 11, 749 5,354 Nov. 15.... 2,649 1,439 1,210 60 2,715 17, 235 2,939 7,384 2,341 564 772 241 11, 587 5,166 Nov. 22..>. 2,593 1,403 1,191 44 2,645 17, 257 2,942 7,434 2,357 466 727 241 11,619 5,171 Nov. 29___. 2,552 1,362 1,191 45 2,605 17, 347 2,947 7,462 2,359 441 776 241 11, 620 5,135 Dec. 6_____. 2,512 1,324 1,189 47 2,568 17, 408 2,949 7,545 2,391 346 785 241 11,617 5,154 Dec. 13 2,512 1,324 1,189 23 2,543 17, 464 2,954 7,564 2,398 753 719 240 11, 288 4,849 Dec. 20 2,496 1,324 1,173 140 2,645 17, 576 2,959 7,679 2,411 694 765 253 11, 378 4,900 Dec. 27 2,489 1,220 1,270 71 2,568 17, 620 2,963 7,663 2,417 646 678 255 11,493 5,046 1940—Jan. 3 2,484 1,220 1,265 73 2,564 17, 697 2,963 7,581 2,367 651 653 251 11,721 5,271 Jan. 10 2,477 1,220 1,258 20 2,504 17, 747 2,965 7,463 2,341 655 677 250 11.830 5,377 Jan.17 2,477 1,220 1,258 31 2,515 17, 805 2,968 7,405 2,361 575 678 250 12,020 5,502 Jan. 24 2,477 1,220 1,258 30 2,514 17,879 2,969 7,365 2,381 507 713 249 12,148 5,592 Jan.31 2,477 1,220 1,258 18 2,503 17,931 2,971 7,376 2,358 549 723 248 12.150 5,559 Feb. 7 2,477 1,218 1,259 2,518 17, 998 2,973 7,403 2,365 632 743 249 12,097 5,523 Feb. 14 2,477 1,215 1,263 2,530 18,063 2,977 7,411 2,385 642 733 249 12.151 5,580 F F e e b b . . 2 2 1 8 2 2 , , 4 4 7 7 7 7 1 1 , , 2 2 0 0 9 9 1 1 , , 2 2 6 6 8 8 2 2, , 5 5 3 2 7 3 1 18 8 , , 1 1 6 0 6 8 2,977 7 7 , , 4 4 5 3 0 9 2 2, , 3 3 7 5 4 8 5 5 9 6 6 1 7 7 1 4 6 4 •2 2 4 4 8 8 1 1 2 2, , 3 24 1 1 8 5 5 , , 6 6 2 8 9 9 Mar. 6 2,477 1,209 1,268 2,515 18, 220 2,984 7,481 2,358 536 731 246 12, 367 5,733 Mar. 13___. 2,477 1,209 1,268 2,524 18, 282 2,985 7,463 2,362 526 754 247 12,439 5,777 Mar. 20.... 2.475 1,209 1,266 2,520 18,360 7,484 2,374 707 791 256 12, 256 5,594 Mar. 27.._. 2,475 1,209 1,266 2,510 18,413 2,990 7,471 2,382 700 256 12, 294 5,679 Apr. 3 2,467 1,205 1,262 2,512 18,470 2,991 7,521 2,372 692 737 256 12, 395 5,815 Apr. 10 2,467 1,205 1,262 2,500 18, 523 2,993 7,509 2,353 590 733 256 12, 575 5,949 Apr. 17 2,467 1,205 1,262 2,514 18,631 2 992 7,536 2,313 513 762 257 12, 757 6,048 Apr. 24 2,467 1,205 1,262 2,501 18, 708 2,997 7,520 2,305 470 773 256 12,883 6,116 May 1 2,467 1,205 1,262 2,500 18, 771 3,000 7,570 2,293 490 793 256 12,870 6,107 May 8 2,467 1,205 1,262 2,507 18, 835 3,004 7,589 2,309 512 802 256 12,877 6,131 May 15 2,474 1,205 1,269 2,518 18, 949 3,004 7,598 2.223 425 878 254 13,094 6,300 May 22..... 2,477 1,206 1,271 2,520 19,071 3,007 7,613 2,204 370 935 254 13, 223 6,373 1 Includes industrial advances and bills bought. 2 End of month and Wednesday figures estimated. 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 available back figures,m ay be obtained upon request from Division of Research and Statistics. Back figuresa re also shown in Annual Report for 1937 (tables 3 and 4) and for excess reserves in BULLETIN for August 1935, pp. 499-500. Back figures for end of month and Wednesday dates since January 6, 1937 on maturity distribution of security holdings will be supplied on request. 549 JUNE 1940 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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 Secured by direct and Federal Reserve Act eligible guaranteed ob- All other To banks To others Federal Reserve Bank ligations of the U. S. Rate In Rate In Rate In Rate In Rate In May effect May effect May effect May effect May effect beginning- 29 beginning- 29 beginning- 29 beginning- 29 jginning— Boston__ Sept. 1, 1939 Sept.1, 1939 Sept. 2, 1937 Sept. 1, 1939 Apr. 29, 1938 New York.... Aug. 27, 1937 Aug.27, 1937 Oct. 10, 1935 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 Sept. 1, 1939 May 11, 1935 Richmond Aug.27, 1937 Aug.27, 1937 Sept.10, 1937 Sept. 1, 1939 Feb.19, 1934 Atlanta Sept.16, 1939 Aug.21, 1937 Aug. 21, 1937 Sept.16, 1939 Apr.23, 1938 Chicago Sept. 1, 1939 Aug.21, 1937 Aug. 21, 1937 Sept. 1, 1939 Oct.16, 1933 St. Louis Sept.21, 1939 Sept.2, 1937 Sept. 2, 1937 Sept.16, 1939 Feb.23, 1935 Minneapolis.. Aug. 24, 1937 Aug.24, 1937 Aug. 24, 1937 Sept. 1, 1939 Oct. 8, 1938 Kansas City_. Sept.16, 1939 Sept.3, 1937 Sept. 3, 1937 Sept.16, 1939 Apr.16, 1938 Dallas Sept.16, 1939 Aug.31, 1937 Aug.31, 1937 Sept.16, 1939 Apr.16, 1938 San Francisco Sept. 3, 1937 Sept.3, 1937 Sept.17, 1937 Sept. 1, 1939 Oct.19, 1933 i Two and one-half per cent to lenders other than banks. NOTE.—Rates applicable to United States Government securities' repurchase agreements are as follows: New York, one per cent; Cleveland, Kansas City, and Dallas, one and one-half per cent. Back figures.—See Annual Report for 1937 (table 40). FEDERAL RESERVE BANK BUYING RATES ON ACCEPTANCES FEDERAL RESERVE BANK RATES ON INDUSTRIAL ADVANCES [Per cent per annum] Rates in effect May 29, 1940, on advances and commitments under Sec. 13b of the Federal Reserve Act Maturity e M R ff a e a c t y e t 2 i o n 9 n In g i e n f n fe in ct g — be- Pre ra v t i e ous [Per cent per annum except as indicated by footnote 3] 1-15 days i._ Oct. 20, 1933 1 Advances to finan- 16-30 days... Vi ...do 1 ing institutions— 31-45 days... ...do I... 1 Advances 46-60 days... ...do 1 direct to Commit- 61-90 days... ...do 1 Federal Reserve Bank industrial On por- ments 9 1 1 2 i - 1 1 - T 2 18 h 0 0 i d s d a r y a a y s t _ e s . . also applies to acceptances bought . . u . . . . n d d d o o er repurchase agre 1 e- m ga o e n r r i c z c i a a o t l m i o o - n r- s t i t w i n i o o s h n t n i i c t f u i o h s - r m p O o a n r in t i r i o e n n - g a to d v m an a c k e e s ments, which agreements are always for a period of 15 days or less. obligated NOTE.—Minimum buying rates at the Federal Reserve Bank of r N r a a e t t B e e w a s s c a m Y k p o f a p i y r l g k y u b r t o e o e n s p — c p u h S a r r c i r e m g h e e a e A d s e b n s f a n o , n u r i f k a o e l a t r n h R s y e ' e , r p a m c o c c a l r a e t d s p e s f t o e a b r s n y c 1 o e 9 o f s 3 t h 7 b p e i ( l a r l t y s a F . a b e b l d e l T e e 4 h ra 1 i e n l ) . s R d a e m o s l e e la r v r m s e ; i B n h i a i m g n h k u e m s r . N B P C h o l e e i w s v l t a o e d Y n la e o n l d p rk h . i . a . - . 4 4 - - 6 6 3 3 4 H-2 Richmond 6 4-6 4-6 1-2 MEMBER BANK RESERVE REQUIREMENTS Atlanta 5-6 5 5 [Per cent of deposits] Chicago 5-6 (9 5-6 St. Louis 4-5^ (3) June 21, Aug. 16, Mar. 1, May 1, Apr. 16, Minneapolis. _ 6 4^-5 4^-5 Classes of deposits 1917- 1936- 1937- 1937- 1938- Kansas City.. 4-6 (3) and banks Aug. 15, Feb. 28, Apr. 30, Apr. 15, and Dallas 5-6 4 5-6 1936 1937 1937 1938 after San Francisco 5-6 3-4 4-5 On net demand deposits:^ i Authorized rate one per cent above prevailing discount rate. Central reserve city__ 13 22^ 26 22% * Same as to borrower but not less than four per cent. Reserve city _ 10 15 2 20 3 Minimum charge one-half of one per cent. Country. 7 12M 14 12 2 Back figures.—See Annual Report for 1937 (table 40). On time deposits: All member banks._. 3 4M 6 5 MAXIMUM RATES ON TIME DEPOSITS i See footnote to table on p. 556 for explanation of method of computing net demand deposits. Maximum rates that may be paid by member banks as established by the Board of Governors under provisions of Regulation Q. MARGIN REQUIREMENTS 1 [Per cent per annum] Prescribed by Board of Governors of the Federal Reserve System in accordance with Securities Exchange Act of 1934 Nov. 1, 1933 Feb. 1, 1935 In effect [Per cent of market value] to to beginning Jan.. 31, 1935 Dec. 31, 1935 Jan. 1, 1936 Apr. 1, Nov. ] 1936- 1937 Oct. 31, and Savings deposits 2K 1937 after Postal savings deposits 2K Other time deposits pay- For extensions of credit by brokers and dealers on able in: listed securities, under Regulation T 55 40 6 months or more K F For short sales, under Regulation T ___ (*) 50 90 days to 6 months 2K For loans by banks on stocks, under Regulation U___ 3 55 40 Less than 90 days 2K i Regulations T and U limit the amount of credit that may be extended on a security by prescribing a maximum loan value, which is a NOTE.—Maximum rates that may be paid by insured nonmember specified percentage of its market value at the time of the extension; banks as established by the Federal Deposit Insurance Corporation, the "margin requirements" shown above are the difference between effective February 1, 1936, are the same as those in effect for member the market value (100%) and the maximum loan value. banks. In some States the maximum rates established by the Board * Requirement under Regulation T was the margin "customarily and the Federal Deposit Insurance Corporation are superseded by required" by the broker. lower maximum rates established by State authority. * Regulation U became effective May 1, 1936. NOTE.—Regulations T and U also provide special margin requirements for "omnibus" accounts and loans to brokers and dealers. 550 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

PRINCIPAL ASSETS AND LIABILITIES OF ALL FEDERAL RESERVE BANKS [In thousands of dollars] Wednesday figures End of month 1940 1940 1939 May 22 May 15 May 8 May 1 Apr. 24 Apr. 17 Apr. 10 Apr. Mar. Apr. Assets Gold certificates on hand and due from U. S. Treasury 16,841,97616,691,97516,496,97716,442,97816,378,47716,288,97616,161,07416,417,97616,067,62113,094,719 Redemption fund—F. R. notes... 7,737 9,089 9,087 9,640 9,140 9,275 8,672 9,639 8,239 8,345 Other cash ____ 374,374 378,611 366,076 379,962 389,625 387,927 385,310 381,193 375,025 372,514 Total reserves.__ _ 17,224,08717,079, 67516,872,14016,832, 58016, 777,24216, 686,17816, 555,05616,808,80816,450,88513,475,578 Bills discounted: For member banks . 2,317 1,812 1,785 1,658 1,362 1,453 1,083 1,694 2,688 3,258 For nonmember banks, etc 10 1,010 1,010 1,010 1,010 1,010 1,010 1,010 1,010 Total bills discounted...! __ 2,327 2,822 2,795 2,668 2,372 2,463 2,093 2,704 3,698 3,258 Bills bought: Payable in foreign currencies 562 Industrial advances 9,232 9,292 9,296 9,333 9,918 9,852 9,875 9,357 10,350 13,292 XJ. S. Government securities, direct and guaranteed: Bonds _ _ _ _ _ __ 1, 346,995 1,344,845 1,337,495 1,337,495 1,337,495 1,337,495 1, 337,495 1,337,495 1,342,045 911,090 Notes. 1,130,125 1,129,225 1,129, 225 1,129,225 1,129,225 1,129,225 1,129, 225 1,129,225 1,133,225 1,176,109 Bills 483,469 Total U. S. Government securities, (Mrect and guaranteed 2,477,120 2,474,070 2,466, 720 2,466, 720 2,466, 720 2,466, 720 2,466, 720 2,466, 720 2,475,270 2,570,668 Other Reserve Bank credit _ 31, 541 31,966 28, 510 21,335 22,307 34,859 21,457 39,125 39,811 6,830 Total Reserve Bank credit outstanding 2, 520,220 2, 518,150 2, 507,321 2,500,056 2, 501,317 2, 513,894 2, 500,145 2, 517,906 2, 529,129 2,594,610 Liabilities F. R. notes in actual circulation 4,984, 611 4,968, 735 4,954,783 4,945, 500 4,918, 503 4,931,115 4,923,425 4,941,165 4,930,814 4,457,868 Deposits: Member bank—reserve account.__ 13, 222, 50213,093,67412,877,01712,869,91612,883,03412,757,39112, 574,72712,918,58612,422, 522 9,899,960 U. S. Treasurer—general account- 370,008 424,634 512,185 490,106 469,974 512, 521 590,460 446,408 702, 219 931,062 Foreign bank 449,854 400,930 360,819 357,212 376,402 384,229 372,802 367,239 362,383 224,832 Other deposits _ 484, 761 476,886 441,280 435,912 396,295 377,569 360,319 420,200 328,180 319,721 Total deposits _. 14,527,12514,396,12414,191,30114,153,14614,125, 70514,031, 71013,898,30814,152,43313,815,30411,375,575 Ratio of total reserves to deposit and F. R. note liabilities combined (per cent) . 88.3 88.2 88.1 88.1 88.1 88.0 88.0 88.0 87.8 85.1 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 9 m 1 t o 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 e o e a a r r s 2 5 y y t e e o a a r rs s 5 O y v e e a r rs Bills discounted: Apr. 24 2,372 707 51 1,198 161 233 May 1_ 2,668 927 1,059 224 189 262 May 8 2,795 969 1,137 190 190 304 May 15 2,822 1,801 250 197 212 357 May 22 2,327 1,386 167 196 171 407 Industrial advances: Apr. 24 9,918 1,447 84 286 629 1,430 1,461 2,130 2,451 May 1 . 9,333 1,437 77 244 646 1,413 1,329 2,012 2,175 May 8 9,296 1,590 86 737 916 626 1,250 1,970 2,121 May 15 9,292 1,572 79 742 916 833 1,126 1,909 2,115 May 22 9,232 1,609 142 622 897 796 1,146 1,908 2,112 U. S. Government securities, direct and guaranteed: Apr. 24 2,466, 720 224, 796 248,417 731, 7081,261,799 May 1 2,466, 720 224,796 248,417 731, 7081,261,799 May 8 2,466,720 224,796 248,417 731,708 1,261,799 May 15 2,474,070 224, 796 248,417 731,708 1,269,149 May 22 22,447777,112200 224,796 248,417 732,608 1,271,299 JUNE 1940 551 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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 r i a s a c n n o - Assets Gold certificates on hand and due from U.S. Treasury: Apr. 17 16, 288,976 888. 9418,078, 757 897, 7441,016,433 412,124324, 9152, 519,445371,469 2501,,827 :58,055228, 870 941, 396 Apr. 24 16, 378, 477 884, 8,167,190 905, 2361,018, 356 413, 621316,893 "21,, 517,492367, 819 246i,, 568:56,193 234,103 950, 220 May 1 16,442,978 888,133 8;;, 221,053904,1831,032, 549 416, 966 307, 9592, 559, 398361,456233, 662156, 523232,259 928,837 May 8 6,496, 977 904t,, 905 ;8,, 134,966924,8401,049,567 414, 258 325, 8612, 572,461360,045280,574 ;59,9"1"2 ~ 235, 606 933,982 May 15 16, 691,975 904:,, 5821 ,8 ,296, 724931,4421,045,053 416, 326, 7102,600,608370,297263,161 230,710 948,248 May 22 16,841, 976 911,717 8,411,417 929, 6681,056, 283 414, 325, 7252, 634,384 '3"619,,379250, 672152^ 790 229,991 955, 637 Redemption fund — Federal Reserve notes: Apr. 17 9,275 422 1,678 1,000 658 1,206 652 846 597 626 308 258 1,024 Apr. 24 9,140 380 1,559 870 601 1,192 574 771 568 616 280 248 1,481 May 1 9,640 380 1,559 870 601 1,192 574 771 568 616 280 748 1,481 May 8 9,087 301 1,253 75J 506 1,511 528 632 543 665 263 736 1,454 May 15 9,089 301 1,253 756 506 1,511 52! 632 544 605 263 736 1,454 May 22 7,73: 301 944 756 413 480 514 522 594 245 736 1,426 Other cash: Apr. 17 387, 927 30,184 106,700 31, 036 29,412 24,365 21,102 47,430 17, 843 10,035 19, 318 16,445 34,057 Apr. 24 389, 625 31, 273 112, 808 29, 759 25, 876 22,403 20,008 50,456 17, 330 10,085 17,850 16, 785 34,992 May 1 379, 962 31, 570 105, 899 29,482 25, 533 23, 282 21,104 47, 726 17, i— 9,594 19, 350 15, 684 33, 649 May 8 366, 076 32, 078 109, 594 28,420 24,252 19, 977 18, 506 48,042 16, 851 8,411 16, 977 15, 357 27, 611 May 15 378,611 33, 537 109, 910 28, 723 25,115 22, 837 20,550 46, 994 17, 645 8,818 19, 669 15, 313 29, 500 May 22 374, 374 32, 523 111,986 27, 362 24, 659 21,104 18,411 49, 546 18,146 7,928 18,138 15,026 29, 545 Total reserves: Apr. 17 16, 686,178 919, 54'8,187,135 929, 7801,046, 503 437, 695346, 669 567, 721389, 909 261,488 377, 681 245, 573 976,477 Apr. 24 16, 777, 242 916, 439 8, 281, 557935, 8651,044,833 437, 216337, 4752, 568, 719 385, 717 257, 269 374, 323 251,136 986, 693 May 1 16, 832, 580 920,08318,328,511 934, 5351,058, 683 441, 440329', 637 2, 607, 895 379,113 243, 872 376,153 248, 691963, 967 May 8 16, 872,140 937, 2848, 245, 813 954,0151, 074, 325 435, 746 344,895" !2,, 621,135 377, 439 289, 590 377,152 251, 699963,047 May 15 17, 079, 675 938, 4208, 407, 887 960, 9211, 070, 674 440, 400 T 2, 648, 234 388,486 979. 202 May 22 17, 224, 944,5418, 524,347 957, 7861,081,355 436, 223 344,6162,684,444 388,047 259,194 371,173 245, 753 Bills discounted: Secured by U. S. Government obligations, direct and guaranteed: Apr. 17 632 4 55 125 23 175 35 30 35 38 Apr. 24 443 67 65 23 90 36 35 23 May 1 621 77 270 30 13 40 19 54 25 5 35 23 May 8 742 62 310 46 23 75 19 54 50 15 35 23 May 15 680 112 200 44 23 120 19 35 25 15 34 23 May 22 1,093 3' 235 61 23 30 20 35 500 15 34 23 Other bills discounted: Apr. 17 1, 831 522 98 128 113 149 128 90 22 181 265 135 Apr. 24 1,929 509 132 130 113 134 128 90 22 261 275 135 May 1 2,047 590 130 130 113 106 128 140 62 243 270 135 May 8 2,053 567 130 119 113 78 128 140 62 266 305 145 May 15 2,142! 604 130 119 113 88 128 140 62 282 331 145 May 22 1,234 204 29 37 70 67 120 65 250 305 71 Total bills discounted: Apr. 17 2,463 57' 223 151 288 184 197 22 211 300 173 Apr. 24 2,372 6; 574 13' 153 203 170 197 90 52 261 310 158 May 1 2, """ 77 860 160 143 153 125 182 165 92 248 305 158 May 8 '_ 2,795 6: 877 176 142 188 97 182 190 92 281 340 168 May 15 2,822 112 804 174 141 233 107 163 165 92 297 365 168 May 22 2,327 53 439 90 60 100 35 620 145 265 339 94 Industrial advances: Apr. 17 9,852 1,234 2,040 2,742 314 915 803 337 186 11: 482 687 Apr. 24 9,918 1,229 2,030 2,731 364 915 802 339 176 11: 482 677 May I..., 9,333 1,199 2,028 2,708 353 910 301 339 172 111 479 673 May 8 9,296 1,196 2,028 2,688 359 910 288 337 170 110 477 673 May 15. 9, 292: 1,192 2,028 2,678 364 907 288 337 179 110 476 673 May 22 9,232 1,168 2,028 2,657 363 912 279 338 174 104 476 673 U. S. Government securities, direct and guaranteed: Bonds: Apr. 17 . 1, 337,495 97, 529 400,969 106,802 136,778 68,248 56,495 146, 385 61,325 40.271 61, 738 51, 517 109,438 Apr. 24 1, 337,495 97, 529 400,969 106,802 136, 77868,248 56,495 146, 385 61, 325 40, 271 61, 738 51, 517 109,438 May 1 1, 337,495 97, 529 400,969 106,802 136, 77868, 248 56,495 146, 385 61, 325 40, 271 61, 738 51,517 109,438 May 8 ___. 1, 337,495 97, 529 400,969 106, 802 136, 77868, 248 56,495 146, 385 61, 325 40,271 61, 738 51, 517 109,438 May 15 1, 344,845 403, 476 107, 418 137, 530 68, 575 56, 774 147,151 61, 599 40,459 62,020 51, 767 110,027 May 22 1, 346, 995 98,199 404, 247 107, 604 137, 752 56, 851 147, 369 61, 672 40, 510 62,096 51,835 110,197 Notes: Apr. 17 1,129, 225 82, 343 338, 532 90,170 115,478 57, 622 47, 700 123,590 51, 775 34,000 52,123 43,495 92, 397 Apr. 24 1,129, 225 82, 343 338,532 90,170 115,478 57, 622 47, 700 123, 590 51, 775 34,000 52,123 43,495 92, 397 May 1 1,129, 225 82, 343 338, 532 90,170 115,478 57, 622 47, 700 123, 590 51, 775 34,000 52,123 43,495 92, 397 May 8 1,129, 225 82, 343 338, 532 90,170 115,478 57, 622 47, 700 123, 590 51, 775 34,000 52,123 43,495 92, 397 May 15 1,129, 225 82, 328 338, 786 90,197 115, 482 57, 580 47, 672 123, 557 51, 723 33, 97f 52,076 43, 466 92, 386 May 22 1,130,125 82, 387 339,160 90,279 115, 574 57,610 47, 699 123, 644 51, 742 33, 987 52,098 43,490 92,455 Total U. S. Government securities, direct and guaranteed: Apr. 17 2,466, 720 179,872 739, 501 196, 972 252, 256125, 870104,195 269, 975113,100 74, 271113, 861 95,012 201,835 Apr. 24 2,466, 720 179,872 739,501 196,972 252,256125,870104,195 269,975113,100 74,271113,861 95,012 201,835 May 1 2,466, 720 179, 872 739, 501 196, 972 252, 256125,870104,195 269, 975113,100 74, 271113,861 95,012 201,835 May 8 2,466, 720 179,872 739, 501 196,972 252, 256125,870104,195 269, 975113,100 74, 271113,861 95,012 201,835 May 15 2,474,070 180, 377 742, 262 197, 615 253, 012126,155104,446 270, 708113,322 74,431114,096 95, 233 202, 413 May 22 2, 477,120 180,586 743, 40; 197, 883 253, 326126, 273104,550 271,013113,414 74,497114,194 95, 325 202, 652 552 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Reserve Banks—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 l l a e n v d e- m R o ic 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: Apr. 17 2,479,035 181,153 742,118 199, 937 252, 721127,073105,182 270, 509 113,190 74,479114,184 95, 794 202, 695 Apr. 24 2,479, 010 181,168 742,105 199,840 252, 773 126,988 1"051,67 270,511113,251 74,499114, 234 95,804 202, 670 May 1 2,478, 721 181,148 742, 389 199,840 252, 752 126, 933 , 270,496113, 325 74, 535114, 220 95, 796 202,666 May 8 2,478,811 181,130 742,406 199,836 252, 757126, 968104, 621 270,494113, 350 74, 533114, 252 95,829 202, 676 Due M M fro a a y y m 2 1 f 2 5 oreign banks: 2 2, , 4 4 8 8 8 6 , , 1 6 8 7 4 9 1 1 8 81 1 , , 6 8 8 0 1 7 7 7 4 4 5 5 , , 8 0 7 9 4 4 2 20 0 0 0 , , 6 4 3 6 0 7 2 2 5 5 3 3 , , 571489 1 ' 12 2 " 77r, ^ ;, 2 2 2 89 9 55 5 1 1 1 0 0 0 4 4 4 , , , 9 8 5 1 4 8 6 1 0 2 2 7 7 1 1 , , 3 2 8 0 6 8 ' 1 1 1 1 4 31 :, ; , , 0 9 5 4 47 7 74 4 , , 8 7 1 0 6 21 1 1 1 4 4 , , 5 5 0 63 3 9 9 6 6 , , 0 1 7 4 4 0 2 2 0 0 3 3 , , 4 2 1 5 9 4 Apr. 17 47 3 18 5 1 1 4 Apr. 24 47 3 18 5 1 1 4 May 1 47 3 18 5 1 1 4 May 8 47 3 18 5 1 1 4 May 15 47 3 18 5 1 1 4 May 22 47 3 18 5 1 1 4 Federal Reserve notes of other banks: Apr. 17 19,461 575 1,319 816 1,614 4,357 2,247 2,345 1,696 1,101 1,532 385 1,474 Apr. 24 22,113 589 1,810 963 1,569 5,175 2,567 2,730 2,287 433 1,411 680 1,899 May 1 21, 751 1,584 910 1,672 3,994 2,598 3,213 1,708 749 1,539 708 2,228 May 8 22,197 1,631 4,453 2,111 3,370 1,829 1,032 1,854 482 2,108 May 15 21, 255 672 1,602 l', 334 3,561 1,468 2,780 2,495 909 1,936 578 2,952 May 22 21,377 852 1,612 1,546 3,082 2,209 2,741 1,975 1,282 2,405 585 2,204 Uncollected items: Apr. 17 763, 669 70,814 195, 229 54,667 91,470 64, 762 32, 617 104,692 32,480 18, 751 32, 51927, 650 38,018 Apr. 24 638, 721 62, 972 151,152 44,342 75, 782 51, 657 24,421 83, 676 27, 793 17,896 34, 229 32, 210 32, 591 May 1 688, 329 66, 641 168, 013 53, 749 81, 766 53, 516 30, 606 96, 423 29, 214 17, 57031, 70224.831 34,298 May 8 599, 213 59,317 139, 926 47,170 66,878 52,144 21, 926 87, 782 28,183 15, 969 28, 659 22,482 28, 777 May 15 ; 788,124 73, 234 195, 316 57,834 99, 611 63,026 30,611 111,110 35, 883 19, 222 34, 977 28, 559 38, 741 May 22 664,147 63, 313 161, 663 52, 973 76, 799 55,438 26,480 92, 949 30,086 17,483 27, 658 22.832 36,473 Bank premises: Apr. 17 41, 625 2,875 9,840 4,541 5,510 2,526 2,023 3,373 2,263 1,389 3,197 1,159 2,929 Apr. 24 41, 621 2,875 9,840 4,541 5,498 2,526 2,022 3,373 2,272 1,389 3,197 1,159 2,929 May 1 41, 533 2,871 9,821 4,530 5,498 2,519 2,019 3,367 2,268 1,386 3,181 1,153 2,920 May 8 41, 536 2,871 9,823 4,530 5,'"" 2,519 2,019 3,367 2, 1, """ 3,181 1,153 2,920 May 15 41, 553 2,871 9,839 4,530 5,499 2,519 2,019 3,367 2,269 1,386 3,181 1,153 2,920 May 22 41, 595 2,871 4,530 5,485 2,519 2,019 3,367 2,325 1,386 3,181 1,153 2,920 Other assets: Apr. 17 58,082 3,926 16, 695 4,650 6,526 3,399 2,416 6,009 2,520 1,787 2,572 2,444 5,138 Apr. 24 59,145 3,977 17, 036 4,890 6,592 3,438 2,437 6,118 2,562 1,812 2,608 2,469 5,206 May 1 59, 524 4,026 17,095 4,711 6,668 3,467 2,475 6,172 2,601 1,835 2,654 2,566 5,254 May 8 60, 293 4,089 17, 342 4,784 6,745 3,517 2,483 6,264 2,637 1,858 2,676 2,584 5,314 May 15 61, 760 4,184 17, 892 4,889 6,889 3,580 2,546 6,398 1,897 2,733 2,641 5,413 May 22 62,465 4,241 18,036 4,951 6,955 3,613 2,576 6,524 2,731 1,929 2,769 2,647 5,493 Total assets: Apr. 17 20,048,0971,178, , 152, 3541,194, 396 404,348 639, 814 491,1562, 954, 655 54:, 059358, 995 531, 686 373,006 1, 226, 735 Apr. 24 20,017,8991,168$,, 023 ,9, 203, 518" .1, 190,446387,051 627,002 474,0912, 935,133533,883353, 298 53"01,,003 383,459 1,231,992 May 1 20,122, 4851,175i,, 620 ,9, 267, 4311,198, 280 407,043 631, 871 471, 958~ 987, 572.28; 230 333399,, 947 529, 450 373, 746 1, 211, 337 May 8 20,074, 2371,185»,, 387 ,9 ,156, 9591, 211, 276 407, 905 625, 349 478, 016 992,418525, 708 384,~ 3"6 8527, 775 374, 230 1, 204,846 May 15 20, 478, 5981, 201, 065 ,9 ,377, 6481, 229, 614 437, 529 640, 383 489, 275 !3,, 043,103554455,, 337799 337700,, 700 535, 651375, 765 1, 232,486 May 22 20, 502, 3971,197',, 628, 9 ,461, 3891, 221, 759 425,893 128,162 482, 818 31,,061,417539, 259 356,090521, 750 369, 111 1, 237,121 Liabilities Federal Reserve notes in actual circulation: Apr. 17 4,931,115 405,4441, 287,810 344, 729 450,501216,478159, 584 , 084, 200 1913,,0183 41, 634 182, 672 79,439 385, 541 Apr. 24 4, 918, 503 404,8641, 278,131 345, 268 451,407218,105159, 278 , 083, 799 19!2,, :143i41, 524 1:8"1 ,• 754 79,152 383,078 May 1 4, 945, 500 405, 3011, 289, 308 345,472 452,834218, 645160, 3561,088, 560 192, 777.42, 507182,466 79, 959 387, 315 May 8 4, 954, 783 406, 2511, 286, 607 346,097 456,441217, 972160, 355 , 091,644 ,43,059182, 376 79, 580 391, 979 May 15 4,968, 735 406, 3041, 306, 676 346, 627 454,428217, 259160,385 , 092, 557 192,065.42, 364182,455 78, 714 388,901 May 22 4,984,611 407, 5161, 313,809 347, 693 455,052216,032160, 9361,095,845 192,162 .42, 357182, 373 78, 576 392, 260 Deposits: Member bank—reserve account: Apr. 17 12, 757, 391 621., 877' 7,, 013, 375675,057 755, 574 287, 585 23i5,, 063 590, i,726 .48, 250 265,006 208;,,443 701, 253 Apr. 24 12, 883, 034 624;, 150 '7,, 073, 238690,016 754, 668295,758 233, 681 623,077 254;:, 181742,135 265,028 "21"2, 604 714,492 May 1 12, 869, 916 627, 7477,055, 987 692, 572 765,069 294, 504225, 7991, 656,493 249, "."31 ,255 264,018213,489 692,994 MayS 12, 877,017 634, 796 "6 ;" 9"613,!746 709,860 299,022239, 655 747 248, 704 •76,768 2"6"81,,466215, 370 692, 739 May 15 13, 093, 674 641, 547 7,, 116,129 706, 451 302,841240,2071, 700,064258, 613 64,304272,053213,494 697,987 May 22 13, 222, 502 647',, 487' 7,, 213,805 700,067 792, 972 302, 378231, 5651, 726, 653 266, 689156, 254 264,638214,657 705, 337 U. S. Treasurer—general account: Apr. 17 512, 521 24,400 120, 396 33, 299 30,238 30, 887 32,161 80.908 30,607 30,992 30,715 32,930 34,988 Apr. 24_. 469, 974 19,136 150,837 26, 973 28, 903 23, 875 23, 339 46,457 30, 248 31,625 26,033 32,479 30,069 M/aLay 1 490,106 20,193 167, 353 22,153 31,106 29,160 23, 938 52, 998 28, 271 28,049 29, 641 28,156 29,088 May 8 512,185 29, 524 159, 612 26,407 48,947 21,050 24, 767 61,898 29,077 28,426 26, 66531, 557 24,255 May 15— 424,634 21, 594 119,150 26,037 29,194 22, 991 26,847 39, 52229,926 24,1"" 24,384 28,985 31,116 May 22 370,f"" 16, 929 117,858 25,481 21,894 16, 369 25, 632 36, 588 19,421 17, 92123, 912 24,334 23, 669 Foreign bank: Apr. 17 384, 229 27, 360 137, 541 37,492 35, 580 16,451 13, 390 45.909 11,477 8,417 11,095 11,477 28,040 Apr. 24 376,402 27, 205 131,853 37,162 35, 266 16, 306 13, 272 45, 504 11, 376 8,342 10,997 11, 376 27,743 May 1 357, 212 25, 628 126, 259 35,104 33, 312 15,402 12, 537 42,984 10, 746 7,'" 10, 388 10, 746 26, 226 May 8 360, 819 25, 617 129,876 35,104 33,313 15,402 12, 537 42, 984 10, 746 7, 10, 388 10, 746 26, 226 May 15 400, "~ 28, 351 145,097 38, 892 36,907 17,065 13, 890 47, 622 11,906 8,731 11, 509 11, 906 29,054 May 22—.. 449,854 32, 519 156, 592 44, 580 42, 305 19, 560 15, 921 54, 587 13,647 10,008 13,192 13,647 33,296 " Less than $500. JUNE 1940 553 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Reserve Banks—Continued [In thousands of dollars] Total Boston Y N o e r w k P p d h h e il 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 - Liabilities—Continued D eposits—C ontinued: Other deposits: Apr. 17 377, 569 6,594 288,397 17,548 9,817 10,702 6,847 3,397 7,917 5,234 1,740 2,007 17, 369 Apr. 24 396,295 6,928 309,630 15,905 8,848 6,230 7,853 3,694 6,897 4,979 2,153 2,103 21,075 May 1 435,912 6,656 350,668 13, 769 8,839 6,428 6,531 5,059 6,825 1,706 5,806 17,937 May 8 441,280 6,501 361,664 13,622 8,144 5,229 6,207 3,737 6,617 5,131 1,739 3,801 18,888 May 15 476,886 6,561 386,313 21,645 8,685 4,575 6,630 3,616 6,431 4,894 1,120 3,623 23, 793 May 22 484, 761 7,201 389,749 18,378 8,151 4,605 10,718 7,897 5,905 5,232 434 3,340 23,151 Total deposits: Apr. 17 14,031, 710 I, 2317 7,, 559, 709763,396 831,209 345,625 287,4611,720,396 305, 727 192,893 308, 556 254,857 781,650 Apr. 24 14,125, 705 677,419 77,,665, 558 770,056 827,685 342,169 278,145 1,71&, 732 302; 708 187; 038014,211 258, 562 793, 379 May 1 14,153,146 680,224 77,, 700,267 838,326 345,494 268,805 1,757, 534 295,831172,872 305, 753 258,197 766,245 May 8 14,191, 301 696^ 438 7,614,898 784,993 853,548 340, 703 283,1661 1,, 7 73,366 2,95,144, 218,2,05 3072,58, 261,474 762,108 May 15 14,396,124 ,053 7,766,689 793,025 854,,777 0 347,,4,721 2,867,59740 1,,78902,48 2340 360,68,7867 260 220,28,1871 73 30090,69066 ,62,5 285,80,00808781,950 May 22 14, 527,125 704,136 7,878,004 788,506 886655,332222 334422,991122 2 288338,3863 61 18,2852 57,2 752 350 350656,26 6128 198491,54 1350 230127,61 7265 52,9597578,8 785,453 Deferred availability items: Apr. 17 728,857 68,410 181, 710 53,100 89,027 62, 27931,151 104,669 32,221 15,152 29, 786 27, 334 34,018 Apr. 24 616,461 60,918 136,492 41,683 74,305 51,257 23,678 87,146 27,994 15,355 33,345 34, 342 29,946 May 1 667,041 65,248 154,623 56,012 82, 231 52,287 29,808 96,055 28, 582 15, 22830, 558 24,195 32,214 May 8 570,750 57,849 131,997 46,937 64,235 51,204 21,482 81,891 27,068 13, 74627,446 21, 759 25,136 May 15 756,205 71,791 180,616 56,709 94,669 60,185 29,308 114,281 35,377 16,169 33,458 27,615 36,027 May 22 632, 653 61,060 145,871 52, 238 71,812 53,713 25,010 94, 31730,342 14,944 26,503 23, 111 33,732 Other liabilities, including accrued dividends: Apr. 17 3,902 378 1,048 386 456 114 149 476 124 154 259 142 216 Apr. 24 4,566 382 1,214 641 483 141 171 537 129 167 265 165 271 May 1 4,064 416 1,108 384 460 130 166 491 112 166 257 146 228 May 8 4,484 418 1,273 424 474 153 181 559 130 178 254 164 276 May 15 4,500 468 1,423 413 462 135 171 467 118 170 255 167 251 May 22 4,728 440 1,403 462 485 160 190 542 133 186 253 175 299 Total liabilities: Apr. 17 •_._.19, 695, 5841,154,463 91,,030,277 1,161,6111, 371,193 624,496 478,345 2,909, 741 531,155 349,833521,273 361,772 1,201,425 Apr. 24 __..19, 665, 2351,143, 583 19,,081, 395 1157,648 1,353', 880 61l', 672 46l', 272 2,890', 214 522,974 344'5,1 91,2 7575 372,221 1, 206, 674 May 1 19, 769, 7511,151, 1,145,306 1165,466 1,373,851 616, 556 459,135 2,942,640 517,302 330,773 519; 034 362; 4917,186,002 May 8 19,721, 3181,160, 1,034,775 1178,451 1,374,698 610,032 465,184 2,947,460 514,764 375,188 5'1'7", ~3~3'4 3—6~2 ,97—71,179,499 May 15 20,125, 5641,176, 616 I9,;255,404 1196,774 1,404,329 625,051 4'76",438 2,998,129 534,436 361, 520525, 234 364, 5041,207,129 May 22 20,149,117 1,173:,, 15I2, 9 3,39,087 11,88; 899 1,392; 671 612; 817 469,972 3,016,429 528,299 346, 905211,305 357,840 1, 211, 744 Capital Accounts Capital paid in: Apr. 17 136,132 9,341 51,075 11,905 14,011 5,276 13, 629 4,121 2,950 4,378 4,107 10,707 Apr. 24 136,125 9,335 51,068 11,911 14,011 5,276 4,632 13,624 4,121 2,955 4,377 4,108 10,707 May 1 136,113 9,336 51,049 11,911 14,013 5,276 4,632 13,624 4,122 2,955 4,377 4,111 10,707 May 8 136,117 9,331 51,049 11,911 14,016 5,276 4,632 13.624 4,128 2,955 4,377 4,111 10,707 May 15 136,108 9,332 51,049 11,912 13,994 5,276 4,632 13.625 4,131 2,957 4,377 4,116 10,707 May 22 136,127 9,332 51,046 11,918 13,997 5,276 4,632 13,629 4,131 2,956 4,378 4,119 10,714 Surplus (section 7): Apr. 17 151, 720 10,405 53,326 14,198 14,323 5,247 5,725 22,824 4,709 3,152 3,613 3,974 10,224 Apr. 24 151, 720 10,405 53,326 14,198 14,323 5,247 5,725 22,824 4,709 3,152 3,613 3,974 10,224 Mayl 151, 720 10,405 53, 326 14,198 14,323 5,247 5,725 22,824 4,709 3,152 3,613 3,974 10,224 May 8 151, 720 10,405 53, 326 14,198 14,323 5,247 5,725 22,824 4,709 3,152 3,613 3,974 10,224 May 15 151, 720 10,405 53,326 14,198 14, 323 5,247 5,725 22,824 4,709 3,152 3,613 3,974 10,224 May 22 151, 720 10,405 53, 326 14,198 14,323 5,247 5,725 22,824 4,709 3,152 3,613 3,974 10,224 Surplus (section 13b): Apr. 17 26,839 2,874 7,109 4,393 1,007 3,246 713 1,429 538 1,001 1,142 1,266 2,121 Apr. 24 26,839 2,874 7,109 4,r~~ 1,007 3,246 713 1,429 538 1,001 1,142 1,266 2,121 May 1 26,839 2,874 7,109 4,393 1,007 3,246 713 1,429 538 1,001 1,142 1,266 2,121 May 8 26,839 2,874 7,109 4,r~ 1,007 3,246 713 1,429 538 1,001 1,142 1,266 2,121 May 15 26,839 2,874 7,109 4,393 1,007 3,246 713 1,429 538 1,001 1,142 1,266 2,121 May 22 26,839 2,874 7,109 4, r ~ 1,007 3,246 713 1,429 538 1,001 1,142 1~" 2,121 Other capital accounts: Apr. 17 37,822 1,810 10, 567 2,289 3,814 1,549 1,741 7,032 1,536 2,059 1,280 1,887 2,258 Apr. 24 _.._. 37,980 1,826 10,620 2,296 3,830 1,561 1,749 7,042 1,541 2,063 1,296 1,890 2,266 May 1 38,062 1,816 10,641 2,312 3,849 1,546 1,753 7,055 1,559 2,066 1,284 2,283 May 8 38,243 1,821 10, 700 2,323 3,861 1,548 1,762 7,081 1,569 2,072 1,309 1^902 2,295 May 15 38,367 1,838 10,760 2,337 3,876 1,563 1,767 7,096 1,565 2,070 1,285 1,905 2,305 May22_ 38,594 lr" 10,822 2,351 3,895 1,576 1,776 7,106 1,582 2,079 1,312 1,912 2, 318 Total liabilities and capital accounts: Apr. 17 20,048,097 1,178,893 9,152,354 1,194,396 1, 404,348 639,814 491,156 2,954,655 542,059 358,995 531,686 373,006. 1,. 226,735 Apr. 24 20,017,899 1,168,023 9I,, 203,5181 ,11,90,446 1,,3 38877,,005511 6 62277,,000022 4 47744,,009911 2 2,,993355,,113333 5 53333,,888833 3 35533,,229988 5 53300,,000033 3 38833,,445599 .1 1,, 231,992 May 1 20,122,485 1,175,620 9),, 226677,,4311 1,198,280 1,,4 40077,,004433 6 63311,,887711 4 47711,,995588 2 2,,998877,, 5 57722 5 52288,, 2 23300 3 33399,,994477 5 52299,,445500 373, 74.6, 1 211,337 May 8 20,074,237 1,185,387 91,,1'5"6,959 11,211, 276 1,407,905 625,349 478,016 2,992,418 525,708 384,368 527, 757 5374,230 1,,204,846 May 15 20,478,598 1,201,065 91;, 337777,; 648 1,229,614 1,437, 529 640,383 489,275 3,043,103 545, 379 370,700 5.3 5,6L5 317 357,5; 716,5 232,486 May 22 20,502,397 1,197,628 9>,,4 6416,13,89 1, 221, 759 1,425,893 628,162 482,818 3,061,417 539,259 356,090 52,1 ,750 369, 1111,237,121 Commitments to make industrial advances: Apr. 17 8,805 331 853 1,145 1,186 731 17 180 468 3,818 Apr. 24 8,725 330 852 1,146 1,181 717 16 120 468 3,818 Mayl 9,225 330 849 1,145 1,182 713 516 179 457 3,778 May 8 8,965 329 848 1,145 1,185 701 516 179 175 3,811 May 15 8,933 326 840 1,14f 1,177 696 516 179 175 3,803 May 22 8,883 322 839 1,145 1,173 516 175 167 3,775 554 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDUSTRIAL ADVANCES BY FEDERAL RESERVE BANKS [Amounts in thousands of dollars] Repaid, Date (last Wednesday of Ap re p c li e c i a v t e i d ons Ap c p o li n c s a i t d io er n a s t i u o n n der A a p p p p li r c o a v t e io d ns Ad o v u a t n - ces C m o o m e u n t m - ts it- A b p c u p o t r m o n v - o e t d d o e ra x r w p w i n r i e th d b - , y P pa a o t r u i t o i t c - n i s each month) ( s a t m an o d u in n g t) ^ ( s a ta m n o d u in n g t) (a p m le o te u d n t » ) ca a n p t p , l e i t - c. ( s a ta m n o d u in n g t) 3 Number Amount Number Amount Number Amount (amount) 1034—Dec. 26.. 4,386 146,972 2,955 984 49,634 13,589 8,225 20,966 5,558 1,296 1935—June 26.. 6,325 237,581 11,349 1,646 88,778 27,518 20, 579 11,248 24,900 4,533 Dec. 31« 7,437 293,084 2,823 1,993 124,493 32,493 27,649 11,548 44,025 8,778 1936—June 24. 8,006 314,471 1,880 2,183 133,343 30,484 24,454 9,381 61,425 7,599 Dec. 30. 8,247 328,998 1,245 2,280 139,829 25, 526 20,959 8,226 77,910 7,208 1937—Mar. 31. 8,344 333,300 1,322 2,323 141, 545 23,059 18, 611 7,898 85, 210 6,767 June 30. 8,430 339,509 1,263 2,361 145,758 23,019 16,331 1,470 97,663 7,275 Sept. 29.. 8,474 341,842 800 2,381 146, 724 21,415 14,880 537 102, 588 7,304 Dec. 29.. 8,534 350, 551 550 2,406 150,987 20,216 12,780 3,369 107,384 7,238 1938—Mar. 30. 8,708 358,936 1,299 2,464 154,918 19,371 13,110 3,419 111, 193 7,825 June 29. 8,976 369,583 476 2,566 161,158 18,444 13,649 3,084 117, 555 8,426 Sept. 28. 9,102 378,974 146 2,617 168,380 17, 567 13,597 5,737 122,447 9,032 Dec. 28. 9,188 387,490 247 2,653 175,013 17,345 14,161 1,946 128,839 12,722 1939—Jan. 25.. 9,203 389,176 999 2,660 175,651 16,811 13,004 1,293 132,009 12,534 Feb. 21 *. 9,221 389,554 964 2,671 175,902 16,474 12,907 1,105 133,001 12,415 Mar. 29. 9,249 392,230 344 177,895 15, 798 12,647 1,975 135,004 12,471 Apr. 26.. 9,270 394,055 495 2,697 178, 639 15,817 11,749 2,134 12,243 May 31. 9,296 394,970 400 2,713 179,332 15,305 11, 530 2,496 137,922 12,079 June 28. 9,308 395,499 255 2,721 179, 778 15, 255 11,175 2,067 139,281 12,000 July 26_. 9,330 399, 780 760 2,730 183,354 15, 384 11,476 733 142,943 12,818 Aug. 30. 9,355 401,228 532 2,743 184,152 14,667 11,009 1,220 144,812 12,444 Sept. 27. 9,366 402,305 370 2,752 185,234 14,454 10, 517 1,938 146,156 12,169 Oct. 25.. 9,388 402,944 70 2,763 186,034 14,545 10,156 1,764 148,037 11,532 Nov. 29.. 9,401 404,226 92 2,772 187,257 14,051 9,643 2,548 149,911 11,104 Dec. 27.. 9,418 405, 225 41 2,781 188, 222 13,683 9,220 2,659 151,679 10,981 1940—Jan. 31... 9,433 406,097 76 2,793 188,879 12,860 8,376 2,504 154, 629 10,510 Feb. 28_. 9,456 407,392 32 2,805 190,055 12,997 8,966 1,454 155, 574 11,064 Mar. 27 . 9,476 410,192 199 2,814 192,665 12,723 8,224 2,471 158,110 11,137 Apr. 24,. 9,487 411,628 118 2,825 194,096 12,001 8,725 2,264 159,950 11,156 May 155. 9,503 413,124 48 2,831 195, 351 11,371 8,933 2,753 160,819 11,475 i includes industrial advances past due 3 months or moro which are not included in industrial advances outstanding in weekly statement of condition of the Federal Reserve Banks. »Includes applications approved conditionally by the Federal Reserct Banks and under consideration by applicant. 1 Does not include financing institution guaranties of advances and commitments made by Federal Reserve Banks, which amounted to $1,023,536 May 15,1940. * Tuesday. 6 Latest date for which figures are available. FEDERAL RESERVE NOTES—FEDERAL RESERVE AGENTS' ACCOUNTS, BY WEEKS fin thousands of dollars] Total B to o n s- Y N o e r w k P p d h h e i i l l - a a- C la le n v d e- m R o ic n h d - la A n t t - a c C a h g i o - L S ou t. is n M o e l a i i n p s - - K C s a a it n s y - Dallas F c S i r s a a c n n o - Federal Reserve notes: Issued to F. R. bank by F. R. agent: Apr. 24 5, 245, 738417, 5411,388,966 361.,877 475, 451234, 758173, 9421,126,072 202,470 145, 773190,180 86,863 441,844 May 1 5, 246,984419,0461,386,426 362, 503 474,951 234,476173,3451,129, 275 202,923 145,814190, 52586,240 441,460 May 8 5, 275, 419424,0211,392,823 364,811 478,370 235, 3881 7147,4 ;7861,132,160 202,710 147, 544194, 50286,535 441,769 May 15 -1 5,296,011421,803 1.,4 16,, 565 362, 533 476,93; 17'4, ~ 7"301,132, 590 203, 761 147,181193, 52386,126 446,121 May 22 5,318, 607424,228 1,,442211,, 516 364,—662482^ 048 233,' 222 174| 313 1,138^ 343 204', 098 147^ 499 194^8 963,5207 447,536 Held by Federal Reserve Bank: Apr. 24 327, 235 12,677 110,835 16, 60924,045 16, 65314, 664 42, 273 10, 327 4,249 8,426 7,711 58, 766 May 1 . 301,484 13, 745 97,118 17,031 22,117 15,831 12,989 40, 715 10,146 3,307 8,059 6,281 54,145 May 8 . 320,636 17, 770 106, 21618, 71421, 929 17, 416 14,431 40, 516 10, 288 4,485 12,126 6,955 49,790 May 15 327,276 15,499 109,889 15,906 22,507 16,884 14,345 40,033 11, 696 4,817 11,068 7,412 57,220 May 22 333,996 16, 712 107, 707 17,190 13,377 42,498 11,936 5,142 12, 562 7,631 55,276 In actual circulation:! Apr. 24 4,918, 503404,8641,278,131345, 268 451,407 218,105159, 278 1,083, 799192,143141, 524 181, 75479,152 383,078 May 1 4, 945, 500405,3011,289,308 345', 472 452,834 218; 645 160', 356 1,088; 560 192,1 7472,7 507 182,46679,959 387,315 May 8 4, 954, 783406, 2511,286,607 346,097 456,441 217, 972 160, -••19-2-,-42 2- 1—43,059 182,376 79, 580 391,979 May 15 4,968,735406,3041,306, 676 346,627 454,428 217,259 160, 78, 714 388,901 May 22 4,984,611407, 5161,313,809 347,693 455,052 216,032 160,936 1,095; 845 192,162 142; 357 182; 37738, 576 392,260 Collateral held by agent as security for notes issued to bank: Gold certificates on hand and due from U. S. Treasury: Apr. 24 5,375,500440,000 1,405,000 375,000 479,000 250,000 180,000 1,140,000 209,000147,500 195,000 91,000 464,000 May 1 5,374,500440,000 1,405,000 375,000 479,000 250,000 180,000 1,140,000 209,000 147; 500195,000 90,000 464,000 May 8 5,375,500440,000 1,405,000 375,000 479,000 250,000 180,000 1,140,000 209,000 148,500195,000 90,000 464,000 May 15 5,420,500440,000 1,435,000 375,000 479,000 250,000 180,000 1,150,000 209,000 148, 500200,000 90,000 464,000 May 22 „_, 5,435, 500440,000 1,445,000 375,000 484,000 250,000 180,0001,150,000 209,000 148, 500200,000 90,000 464,000 Eligible paper: Apr. 24 719 67 147 160 50 May 1 1,059 77 433 110 90 70 217 May 8 1,170 62 450 145 115 70 250 May 15 1,171 112 367 190 90 70 266 May 22 1,657 53 439 100 565 145 265 Total collateral: Apr. 24 5, 376, 219440,067 1,405,147 375,039 479,000 250,160180,000 1, 140,000 209,050 14,7, 530 19,5 ,22691,000 464,,000 May 1 5,375, 559440,077 1,405,433 375,006622 447799,.000 250,110180,000 1, 140,000 209,0901 47,, 570 195, 21790,000 464:,,000 May 8 5, 376,670440,062 1,405,450 375,078 479,000 250,145180,000 , 140,000 209,1151 4184 85,7 507 1095,250 90,000 464:,,000 M M a a y y 2 1 2 5 5 5 , , 4 4 2 3 1 7 , , 1 6 5 7 7 1: 4 4 0 0 , , 0 1 5 1 3 2 1 1 , , 4 43 4 5 5, , 4 3 3 6 9 7 3 3 7 7 5 5 , , 0 0 9 7 0 6 4 t 8 47 4 9" , , 0 0 0 0 0 0 2 2 5 5 0 0 , , 1 1 0 9 0 01 18 8 0 0 , , 0 0 0 0 0 0 , , 1 1 5 5 0 0 , , 0 0 0 0 0 0 2 20 0 9 9 , ,0 5 9 6 0 5 1 1 4 4 8 8 , , 5 6 7 4 2 2 0 5 0 0 0 0 , , 2 2 6 6 6 5 9 9 0 0 , , 0 0 0 0 0 0 4 4 6 6 4 4, ,, , 0 0 0 0 0 0 i Includes Federal Reserve notes held by the United States Treasury or by a Federal Reserve Bank other than the issuing bank. JUNE 1940 555 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RESERVE POSITION OF MEMBER BANKS, APRIL, 1940 MEMBER BANK RESERVE BALANCES BY CLASSES OF BANKS [Averages of daily figures. In millions of dollars] [Averages of daily figures. In millions of dollars] Cl a a n s d se s d i o s f t r b ic a t n s ks m G d r a e o n - s d s m N d a e e n - t d T d im e- e F R ed e e se r B a rv a l n e R s k e s w se i r th ve b m a b A e n e m l k r l s - 1 C N e c e n i w t t r y a l b r a e n C s k e h s i r - ve b s c a R e i r n e t v y k - e s b C a t o n r u y k n s - l de- de- posits York cago posits posits i Re- Exquired Held Total reserves held: 1939—April 9,624 4,889 794 2,544 1,397 All member banks.. 38, 560 31,475 11,987 6,700 12,703 6,003 May 9,997 5,094 878 2,630 1,395 Central reserve city banks: June 10, 085 5,049 893 2,728 1,415 New York 14, 740 14,060 764 3,237 6,548 3,312 July 10, 321 5,195 848 2,827 1,451 Chicago 2,791 2,457 584 972 388 August 10, 659 5,366 923 2,883 1,486 September 11, 443 5,866 1,009 3,009 1,559 Reserve city banks: October 11, 862 5,958 1,112 3,203 1,588 Boston district 1,234 1,111 87 199 225 November 11, 688 5,759 1,115 3,229 1,585 New York district 228 177 158 39 24 December 11, 473 5,623 1,141 3,141 1,568 Philadelphia district.. 1,428 1,189 231 220 492 272 1940—January 11, 985 6,099 940 3,319 1,628 Cleveland district 1,817 1,436 739 288 583 294 February 12, 215 6,323 901 3,344 1,646 Richmond district 827 587 216 113 194 81 March 12, 362 6,428 899 3,368 1,668 Atlanta district 816 544 180 104 143 39 12, 703 6,548 972 3,476 1,706 Chicago district 1,418 988 605 203 368 165 Week ending "(Friday)": St. Louis district 893 655 175 123 179 56 1940—Apr. 5 12, 409 6,507 891 »-3, 345 "1, 666 Minneapolis district... 402 306 88 58 81 23 Apr. 12 12, 552 6,488 942 3,419 1,704 Kansas City district... 1,027 690 158 129 195 67 Apr. 19 12, 742 6,537 980 3,500 1,725 Dallas district 777 461 129 87 130 43 Apr. 26 12, 897 6,603 1,018 3,555 1,721 San Francisco district. 2,309 1,825 1,978 418 624 May 3 12, 919 6,634 1,039 3,536 1,711 May 10 12, 893 6,544 1,061 3,567 1,722 Total 13,176 9,S 4,743 3,476 1,494 May 17 13,037 6,599 1,092 3,622 1,724 Excess reserves: Country banks: 1939—April 3,926 2,302 794 531 Boston district 919 653 561 106 195 May 4,212 2,465 360 858 529 New York district 1,371 974 1,405 187 418 231 June 4,246 2, 394 362 944 546 Philadelphia district. 683 428 881 95 182 86 July 4,402 2,504 305 1,013 581 Cleveland district 643 410 702 84 159 74 August 4,607 2,587 363 1,046 611 Richmond district 602 340 368 59 99 39 September 5,198 2,943 430 1,147 678 Atlanta district 583 339 238 53 94 41 October 5,490 2,974 518 1,295 704 Chicago district 933 573 755 106 216 110 November 5,259 2,753 516 1,294 696 St. Louis district 394 238 245 41 72 31 December 5,011 2,611 540 1,188 671 Minneapolis district... 331 204 281 39 67 28 1940—January 5, 464 3,045 342 1,350 727 Kansas City district- 470 280 158 42 68 27 February 5,626 3,199 301 1,378 747 Dallas district 564 331 104 45 82 37 March 5,734 3,248 310 1, 405 771 San Francisco district. 359 219 284 40 56 15 April 6,003 3,312 1,494 Week ending (Friday): Total 7,853 4,8 5,981 1,706 1940—Apr. 5 5,820 3,302 358 1,390 770 Apr. 12 5,899 3,278 367 1,447 807 Apr. 19 6,019 3,293 387 1,512 828 1 Gross demand deposits minus demand balances with domestic banks Apr. 26 6,134 3,339 412 1,560 823 (except private banks and American branches of foreign banks) and May 3 6,158 3,375 431 1,540 812 cash items in process of collection. May 10 6,144 3,307 449 1,567 821 NOTE.—See table at foot of p. 550 for percentages of deposit required May 17 *>6, 250 3,346 471 1,611 P823 to be held as reserves. v Preliminary. r Revised. 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] All member banks Member banks in larger centers Member banks in smaller centers (places over 15,000) (places under 15,000) Federal Reserve district Gross demand Time Gross demand Time Gross demand Time April March April March April March April March April March April March Boston 2,153 2,123 648 2,023 1,995 517 517 130 128 131 131 New York 16, 339 16,145 2,327 2,329 1, 301 1, 353 i 1, 062 1,058 297 299 502 500 Philadelphia... 2,111 2,057 1,112 1,109 1,870 1,815 655 654 241 241 456 456 Cleveland 2,460 2,437 1,441 1,439 2,214 2,192 1,130 1,129 246 244 311 310 Richmond 1,429 1,409 584 580 1,229 1,210 379 377 201 200 204 203 Atlanta 1,399 1,371 418 415 1,211 1,187 327 326 188 184 90 89 Chicago... 5,142 5,113 1,860 1,848 1, 995 1, 983 i 1,053 i 1, 045 356 354 307 305 St. Louis. 1,287 -1, 287 420 424 1,048 1,049 301 304 239 238 119 119 Minneapolis... 733 745 369 368 537 546 179 179 196 198 190 189 Kansas City... 1,497 1,541 316 316 1,151 1,190 201 201 346 350 116 115 Dallas 1,341 1, 350 232 235 1,033 1,038 188 188 308 312 45 47 San Francisco.. 2,668 2,586 2,262 2,259 2,545 2,464 2,160 2,158 123 122 101 101 Total 38,560 38,164 11,987 11,970 18,158 U8,023 1 8,152 8,137 2,871 2,871 2,573 2,565 i Excluding central reserve city banks, for which figures for latest month are shown in table above. 556 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

KINDS OF MONEY IN CIRCULATION [Outside Treasury and Federal Reserve Banks. In millions of dollarsj 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 com notes notes notes notes 1939—March 6,817 74 41 1,378 1 352 151 251 4,350 27 193 April 6,905 73 42 1,385 1 354 152 255 4,426 26 191 May 6,967 72 42 1,417 1 358 154 259 4,449 26 189 June 7,047 72 42 1,454 361 155 266 4,484 26 186 July 7,049 71 43 1,446 362 156 264 4,496 25 184 August 7,171 71 43 1,465 365 157 267 4,595 25 182 September- 7,293 71 43 1,488 369 159 269 4,688 25 180 October 7,342 70 44 1,485 373 161 267 4,739 24 178 November.. 7,483 70 44 1,530 379 163 269 4,826 24 177 December.. 7,598 69 45 1,554 381 164 272 4,912 24 175 1940—January 7,376 69 44 1,469 1 372 163 265 4,796 23 173 February... 7,455 68 45 1,500 1 373 163 271 4,839 23 171 March 7,511 68 45 1,508 1 375 164 260 4,896 23 170 April 7,559 68 45 1,557 ] 377 166 248 4,906 23 168 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 currencys Large denomination currency * in cir- Un- End of month cula- assorttion * Total Coin $13 $2 $5 $10 $20 Total $50 $100 $500 $1,000 $5,000 $10,000 ed « 1939—March 6,817 5,049 544 503 33 928 1,594 1,448 1,770 411 799 165 349 17 28 April 6,905 5,069 548 505 32 929 1,602 1,453 1,838 418 829 170 370 18 33 May 6,967 5,109 554 513 33 937 1,614 1,458 1,861 422 836 172 380 17 33 June 7,047 5,164 558 514 33 947 1,638 1,473 1,887 428 848 176 388 17 29 July 7,049 5,169 561 514 33 947 1,644 1,470 1,885 426 847 175 391 17 28 August.. _ 7,171 5,253 566 521 34 966 1,681 1,487 1,922 433 857 180 405 17 30 September 7,293 5,329 571 532 34 980 1,706 1,507 1,965 440 876 185 413 20 30 October 7,342 5,363 577 535 34 982 L, 710 1,526 1,981 445 884 186 415 20 30 November _ 7,483 5,478 586 545 35 1,004 1,752 1, 557 2,007 452 896 188 420 20 32 December 7,598 5,553 590 559 36 1,019 1,772 1,576 2,048 460 919 191 425 20 32 1940—January... 7,376 5,332 579 526 34 970 1,692 1,532 2,047 457 920 191 426 20 33 February.. 7,455 5,397 581 530 34 986 1,723 1,543 2,061 459 930 191 427 20 34 March 7,511 5,414 584 531 33 989 1,731 1,546 2,101 460 941 194 432 24 49. April 7,559 5,437 588 534 34 992 1,739 1,551 2,126 463 951 195 439 30 48 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 STATES PAPER CURRENCY [Held by Treasury and Federal Reserve Banks and in circulation. In [By selected banks and financial institutions in New York City. millions of dollars] In millions of dollars] Silver Fed- Ship- Receipts Net dollars Sub- eral Na- Year or month ments to from ship- Net and sid- Minor United Re- tional Europe Europe ments receipts End of month Total silver iary coin States serve bank bul- silver notes bank notes lion i coin notes 1937 21.5 47.6 26.1 1938 33.1 34.4 1.3 1939 110.2 9.8 100.4 1939—March 2,839 1,733 377 160 347 27 196 April 2,849 1,746 376 160 347 27 193 1939—April 46.1 .3 45.8 May 2,862 1,759 377 161 347 26 191 May . _. _. 3.8 .7 3.1 June 2,881 1,778 380 161 347 26 189 June 2.9 1.1 1.8 July > 2,895 1,794 381 162 347 26 186 July 2.2 1.0 1.2 August 2,907 1,804 383 162 347 25 185 August 4.7 .9 3.8 September. 2,919 1,814 386 164 347 25 183 September .8 .1 .7 October 2,932 1,825 390 166 34? 25 181 October ___, 1.8 .2 1.6 November 2,947 1,835 394 167 347 25 179 November 4.5 1.3 3.2 December.. 2,963 1,845 399 169 347 24 178 December 6.6 .3 6.3 1940—January 2,971 1,855 400 169 347 24 175 1940—January 5.3 0) 5.3 February... 2,981 1,866 401 170 347 24 173 February 4.7 0) 4.7 March 2,990 1,876 401 171 347 23 172 March 1.4 0) 1.4 April 2,999 1,886 400 172 347 23 171 ApriL._ _ 3.5 0) 3.5 i Includes silver held against silver certificates amounting to $1,818,- i Less than $50,000. \ 000,000 on April 30, 1940 and $1,640,000,000 on ApriL30, 1939. Back figures.—See Annual Report for 1937 (table 38). Description—See BULLETIN for January 1932, pp. 7-8. JUNE 1940 557 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANALYSIS OF CHANGES IN GOLD STOCK OF UNITED STATES MOVEMENT OF GOLD TO AND FROM UNITED STATES1 [In millions of dollars] [In thousands of dollars] Net G en o d ld o s f to p c er k i o a d t cr I e i n n a - se Net l t o g h s a r s o in u ( g o - h r ) m D ti e o c s - - 1940 Period Total I a n c a c c o t u iv n e t s t g t o o o t c l a d k l im go p l o d rt m a t c r a e t a i r a o k n r n i s - n s - g * d g t p i u o r o o c l n d - - From or to— Im- April Ex- Im M - arch Ex- Im Ja - n.-Ap E r x . ports ports ports ports ports ports 1934« 8,238 4,202.5 1,133.9 82.6 96.0 1 1 1 1 9 9 9 9 3 3 3 3 5 9 8 7 , . . . . . . 1 1 1 1 1 7 4 2 1 0 , , , , ,1 6 5 7 2 2 4 6 1 5 5 4 0 2 8 1,22 2 7 6 . .5 9 3 1 1 1 1, , , , , 1 6 1 8 7 3 0 3 8 5 2 2 2 7 1 . . . . . 0 2 5 3 1 1 , , 9 7 5 5 1 7 7 3 8 1 4 3 9 5 6 . . . . . 6 0 5 6 2 - - - 3 2 5 - 3 8 0 3 3 5 0 4 . . . . . 9 4 4 2 5 1 1 1 1 1 4 5 4 1 3 8 9 3 0 1 . . . . . 6 8 7 9 6 I N B F H t r e e a u a l t l n g n h y g i c e u . a e r . m r . l . a y nds _ _ 1 3 6 , , 2 1 7 08 3 1 2 1, , 9 2 7 3 8 3 6 9 2 5 0 3 5 5 8 0 , , , 9 9 1 1 6 2 5 7 3 8 7 1 3 4 7 Norway 33, 405 1938— J J N A D S O M u u e o e u c l n a p c t y v g e o y t e e u e b m m s m e t b r b b e e e r r r 1 1 1 1 1 1 1 1 2 3 2 3 3 4 4 4 , , , , , , , , 9 1 9 0 7 3 5 0 6 3 1 1 6 1 6 1 3 6 9 7 0 2 5 2 6 3 2 1 1 4 4 5 0 2 4 9 1 9 4 4 5 3 7 9 8 . . . . . . . . 8 2 0 5 8 6 5 3 2 5 5 1 1 5 6 5 4 6 2 7 6 2 3 5 0 2 0 7 6 . . . . . . . . 8 8 5 3 4 8 0 9 -1 - - - - - - 1 5 2 6 2 1 1 - 0 7 3 0 2 8 5 3 . . . . . . . . 4 9 9 4 8 5 3 2 1 1 1 1 1 1 1 9 5 3 4 3 1 4 4 . . . . . . . . 6 5 3 7 5 5 1 2 A U S S U C C C M w w h a e r n . e g n n i i e i S x l t e t a t d e e z i . r n d c e d e a S t o a n r l i . l n . K a A R a n i m d n e g r d ic o a m.... 3 3 4 5 2 9 4 3 2 1 , , , , , , 3 1 9 6 6 6 5 7 9 5 9 5 6 1 6 6 7 3 9 4 7 7 32 2 2 3 6 4 5 2 8 5 9 , , , , , 2 9 9 8 2 5 7 0 1 7 9 6 2 6 7 5 3 1 8 0 6 4 1 1 0 5 2 7 4 4 4 6 2 3 5 " , , , , , , , , 8 4 5 5 6 0 6 1 7 7 1 6 9 2 6 1 8 2 6 0 1 4 2 5 67 1939—January 14,682 170.0 156.3 14.1 12.2 Colombia. 2,111 2,116 4,234 February 14,874 192.7 223.3 -48.6 10.5 Ecuador 252 440 1,281 March 15,258 383.8 365.4 10.7 11.1 Peru 471 382 2,752 April 15,791 532.3 605.8 -114.8 13.1 Venezuela 475 334 1,767 May 15,957 166.2 429.4 -251.6 12.6 Australia 3,374 7,409 21,179 June 16,110 153.3 240.4 -104.8 10.7 British India 3,139 11,813 31, 418 J A N D S O u e u o e c l p c t y g v o t e u e e b m m s m e t b r b b e e e r r r 1 1 1 1 1 1 7 6 7 6 6 7 , , , , , , 0 6 3 9 2 6 4 9 5 3 3 4 6 1 8 2 8 4 4 2 2 2 1 1 0 8 6 8 2 5 7 5 7 5 8 9 . . . . . . 6 9 1 1 0 9 2 2 3 4 1 6 5 7 2 5 6 9 9 8 6 1 8 . . . . . . 7 9 6 1 0 2 - - 2 1 1 0 6 9 7 5 0 4 2 0 9 2 . . . . . . 8 0 8 9 5 1 1 1 1 1 1 1 5 4 4 3 8 3 . . . . . . 7 8 1 1 5 2 J P S C A a o h h l K p l u i i a l o n t o i n h t p a n h p g A e i r . n a f . r c e n . i . o c d I a u s n la t H r n i o e d n s s 2 g . . . _ 28 4 3 1 1 , , , , , 7 3 7 0 7 1 0 4 7 9 0 0 6 2 8 2 4 3 5 4 1 , , , , , 1 1 7 5 2 3 0 9 0 5 9 2 3 7 1 1 9 5 1 1 2 2 1 5 3 , , , , , 1 1 2 7 4 1 0 6 7 7 5 6 2 2 0 1940—January 17,931 287.5 236.4 40.0 13.6 Total 249, 885 33 459,845 18 1,147,618 126 February 18,177 246.0 201.4 37.0 11.4 March 18, 433 256.0 459.8 -213.4 12.1 April 18, 770 336.9 249.9 67.2 P12.8 i Figures represent customs valuations which, with some exceptions, May l-29__. 19,162 392.3 424.6 -54.6 are at rate of $35 a fine ounce. . ' Includes all movements of unreported origin or destination. p Preliminary. Back figures.—See table, p. 611, and Annual Report for 1937 (tables 1 Gold held under earmark at Federal Reserve Banks for foreign ac- 31 and 32). count on April 30,1940, in millions of dollars: 1,232.3. » Figures based on rate of $20.67 a fine ounce in January 1934 and $35 a fine ounce thereafter. NOTE.—Figures for domestic production of gold are those published in table, p. 611, adjusted to exclude Philippine Islands production received in United States. Adjustment based on annual figures reported by Director of Mint and monthly imports of gold to U. 8. from Philippines. For back figures see Annual Report for 1937 (table 29). BANK DEBITS [Debits to individual deposit accounts, at banks in principal cities.] BANK SUSPENSIONS1 [In millions of dollars] Total, 140 133 Member Nonmember all New other other Total, banks banks Year and month re i p n o g rt- Y C o it r y k le in a g d- rep in o g rtba a n ll ks ti N on a a - l State su I r n e - d' in N su o r t ed centers centers centers * 1929 982,531 603,089 331,938 47,604 1935 402,718 184,006 190,165 28,647 Number of banks suspended: 1936 461,889 208,936 219,670 33,283 1934 57 1 8 48 1937 469,463 197,836 235,206 36,421 1935 34 4 22 8 1938 405,929 168,778 204,745 32,406 1936 44 1 40 3 1939.. — 423,932 171,382 218,298 34,262 1937 59 4 2 47 6 1938 55 1 1 47 6 1939—March 37,322 16,274 18, 211 2,837 1939 42 4 3 25 10 April 32,822 13.311 16,832 2,879 1Q40 jan -ADril 10 9 1 May 34, 656 14,165 17,763 2,728 June 36,883 15.312 18,676 2,806 Deposits of suspended banks July 33,245 12,794 17,683 2,768 (in thousands of dollars): • August 33,314 13,118 17,496 2,701 1934 36,937 40 1,912 34,985 September 36,594 15,138 18,526 2,030 1935 10,015 5,313 3,763 939 October- 35,830 13,683 19,029 3,119 1936 11,306 507 10,207 592 November 34, 666 13,041 18,636 2,900 1937 19,723 7,379 1,708 10,156 480 December. 43,447 17,633 22,386 3,428 1938 13,012 36 211 11,721 1,044 1939 _._ 34,998 1,341 24,629 6,589 2,439 1940—January... 37, 786 14,739 19, 978 3,069 1940—jan -April 3,560 3,414 146 February.. 32,197 12,138 17,344 2,715 March 37,769 15,201 19, 537 3,031 i Represents banks which, during the periods shown, closed tem- April. 37, 780 15, 519 19,250 3,010 porarily or permanently on account of financial difficulties; does not include banks whose deposit liabilities were assumed by other banks at i Comprises centers for which bank debit figures are available beginthe time of closing (in some instances with the aid of Federal Deposit ning with 1919, except that one substitution was made in 1920 and one Insurance Corporation loans). in 1928. * Federal deposit insurance became operative January 1,1934. * Centers (other than the 141 centers) for which bank debits are current- • Deposits of member banks and insured nonmember banks suspended ly reported. The number has changed very little since 1934 and has are as of dates of suspension, and deposits of noninsured nonmember numbered 133 since 1936. banks are based on the latest data available at the time the suspensions Back figures.—See Annual Report for 1937 (Table 71), which also gives were reported. a definition of bank debits. Figures for individual reporting cities and Back figures.—See Annual Report for 1937 (table 76). totals by Federal Reserve districts are available in mimeographed form 558 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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 ban ks 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 tne Currency. For comparative figures of private banks included in the figures from June 1934 to December 1935, see Federal Reserve BULLETIN ?f or December 1935, p. 883, and July 1936, p. 535. Figures for nonmember banks are for dates indicated or nearest thereto for which figures* are available. NUMBER OF BANKS DEPOSITS, EXCLUSIVE OF INTERBANK DEPOSITS1 [In millions of dollars] Nonmember Member banks banks Member banks Nonmember banks Call date Total Other Total ti N on a a - l State M s b a a v u n i t n k u g s a s l m n b o e e m n r - - Call date ba A n l k l s Total ti N on a a - l State M sav u i t n u g a s l no O n t m he e r mbanks banks ber banks 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 5,154 857 679 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. 2__ 15,061 6,339 5,196 1,143 552 8,170 Oct. 2 .... 57,437 39,287 25,248 14,039 10,520 7,630 Dec. 308 15,035 6,362 5,187 1,175 552 8,121 Dec. 30»__ 58,344 39,930 25,661 14,269 10,613 7,801 For footnotes see table below. For footnotes see table below. LOANS AND INVESTMENTS [In millions of dollars] All banks Member banks Nonmember banks Mutual savings banks Other nonmember banks Call date Total Loans I m nv en es t t s - Total Loans I m nv e e n s t t s - Total Loans I m nv e e n s t t s - Total Loans I m nv e e n s t t s - 1929—June 29 68,474 41,531 16,943 35,711 25,658 10,052 9,556 5,892 3,664 13,207 9,981 3,227 Dec. 31 68,417 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 43,468 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» 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 49,616 21,318 28,299 32,603 13,141 19,462 10,342 4,931 5,411 6,671 3,245 3,425 Oct. 2__ 49,954 21,634 28,320 33,075 13, 470 19,605 10,333 4,936 5,397 6,546 3,228 3,318 Dec. 30« 60,882 22,167 28,714 33,941 13,962 19,979 10, 332 4,961 5,371 6,610 3,244 3,365 » 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. «Beginning December 1938 figures of loans and investments exclude approximately $60,000,000 and $100,000,000, heretofore reported as loans •nd investments, respectively, which indirectly represent bank premises or other real estate and are now classified in condition reports among "Other assets." » Figures for "All banks" are preliminary. Back figures.—See Annual Report for 1937 (tables 48-49). JUNE 1940 559 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CONDITION OF ALL MEMBER BANKS—LOANS AND INVESTMENTS [In millions of dollars] Loansi ][nvestments 1 Call date m T l v o a o i e e n a n t s n n d - a t t s - l s Total i C t m d c a r i o i u i n n e a a m s d - r l l - - , , - p O m k a p p a e e r t e n - r b p o r T L s o r u o e k o r c c c - a a u h n r r a s r it y s i f i i e o n n s r 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 U. £I. Go D v i e r r e n c m t ent obligatio G n a s u n a - r- g S p O a t a i o a t c o b n i t l a o f l d i e l i t n s - - s s O i e t t i c h e u s e r r - 1 a c g u r l i - - a e n rs d ot T he o rs' Total Bills* Notes Bonds teed d su iv b i - tural' deal- sions ers Total—All MtmberBanks 1929— Dec. 31 ._35,934 26,150 683 2,463 7,685 3,191 714 11,515 9,784 3,863 249 520 3,094 1,393 4,528 1933—June 30 24,786 12,858 595 953 3,752 2,372 330 4,857 11,928 6,887 1,113 2,049 3,725 1 744 3 297 1938—Mar. 7...31, 521 13, 546 607 878 2,665 2,556 96 6,745 17,975 0,625 797 4,297 5,531 ~1~827 2,209 3,314 June 30 _30, 721 12, 938 492 701 2,614 2,613 120 6,397 17, 783 0,215 316 3,653 6,246 2,128 2,143 3,296 Sept. 28. 31, 627 12,937 484 713 2,590 2,661 126 6,364 18, 689 0,713 313 3,707 6,693 2,298 2,317 3,361 Dec.31_. 32,070 13,208 5,448 442 973 lib 2,716 125 2,728 18.863 0,882 286 3,389 7,208 2,340 2,448 3,192 1939—Mar. 29..32,095 13,047 5,531 427 838 733 2,749 99 2,671 19,048 0,691 303 2,604 7,783 2,660 2,555 3,142 June 30.. 32,603 13,141 5,571 420 731 736 2,828 58 2,796 19, 462 10.946 441 2,720 7,786 2,831 2, 554 3 131 Oct. 2«._ 33,075 13,470 19,605 10, 891 2 920 2,764 3,030 Dec. 30__33, 941 13,962 6,115 455 790 700 2,957 56 2,888 19,979 11,184 563 2,223 8,398 3,144 2, 692 2. 959 1940—Mar. 26« 34,163 13, 939 20, 224 11,314 3,107 2,905 2 898 New York, City». 1929—Dec. 31.. 8,774 6,683 195 1,257 2,145 169 322 2,595 2,091 1,112 58 166 889 222 758 1933—June 30. _ 7,133 3,424 364 758 1,044 157 162 937 3,709 2, 551 638 987 926 478 680 1938—Mar.7 _. 8,317 3,532 168 696 727 140 60 1,741 4,785 3,180 505 1,529 1,145 432 485 688 June 30__ 8,013 3,172 141 556 717 132 85 1,541 4,840 3,031 222 1,358 1,451 709 394 707 Sept. 28. 8,355 3,146 153 564 702 132 95 1,499 5,209 3,153 251 1,342 1,550 834 495 727 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 1989—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 1,157 662 708 Dec. 30__ 9,339 3,296 ~I,~776~ """fill" """188" """44" ""425" 6.043 3.407 ""797" 1," 385" 1, 275 579 693 1940—Mar. 26 • 9,594 3,211 6,383 3,686 1,286 686 City of Chicago7 1929—Dec. 31.. 1,757 1,448 19 251 533 21 88 535 309 116 3 19 94 96 96 1933—June 30.. 1,287 677 70 61 25J 30 30 237 610 384 206 82 97 87 138 1938—Mar. 7... 1,997 614 27 38 113 11 423 1,382 1,008 153 371 484 100 136 139 June 30. 1,806 525 15 29 109 10 361 1,281 859 12 313 535 122 140 169 Sept. 28. 1,889 522 18 31 111 10 351 1,367 921 1 310 611 126 144 175 Dec. 31.. 1,969 539 336 16 43 70 12 1 62 1,430 1,005 59 291 655 109 141 176 1939—Mar. 29 1,965 545 361 14 32 70 12 57 1,420 992 121 212 660 108 149 171 June 30_. 2,052 544 348 14 39 71 11 59 1,507 1,040 185 234 621 135 154 179 Oct. 28__ 2,050 563 1,487 1,017 155 147 168 Dec. 30_. 2,105 569 372 17 41 66 13 60 1, 536 1,031 153 176 701 172 162 170 1940—Mar. 26« 2,222 564 1,658 1,180 139 175 164 Reserve City Banks 1929—Dec. 31..12,029 9,084 168 664 2,775 1,538 258 3,679 2,944 1,368 91 165 1,112 448 1,128 1933—June 30. . 8,492 4,482 126 108 1,340 1,131 99 1,678 4.011 2,483 205 681 1,597 598 930 1938—Mar. 7... 11,250 5,031 197 118 1,020 1,173 25 2,498 6,219 3,962 115 1,610 2, 236 648 708 901 June 30— 11,150 4,853 163 95 998 1,201 26 2,369 6,298 3,940 69 1,268 2,603 718 732 908 Sept. 28. 11, 426 4,870 156 96 992 1,217 22 2,387 6,556 4,088 47 1,290 2,752 743 115 950 Dec.31._ 11,654 4,963 2,121 149 119 242 1,230 20 1,081 6,691 4,278 57 1,224 2,997 740 808 866 1939—Mar.29..11,624 4,936 2,116 145 115 228 1,249 17 1,066 6,688 4, 181 100 977 3,105 823 823 860 June 30__ 11,756 5,004 2,118 138 115 221 1,284 12 1,116 6, 751 4, 102 78 1,014 3,010 889 895 866 Oct. 2«_. 11,880 5,127 6,752 4 089 909 897 856 Dec. 30.. 12, 272 5,329 2,322 155 119 222 1,335 9 1,168 6,943 4,222 63 819 3,339 972 890 860 1940—Mar. 26« 12,153 5,305 6,848 4,107 963 928 850 Country, Banks 1929—Dec. 31..13,375 8,936 201 291 2,231 1,462 45 4,705 4,439 1,267 97 171 999 627 2,546 1933—June 30.. 7,873 4,275 35 25 1,117 1,055 38 2,005 3,598 1,469 64 299 1,106 581 1,549 1938—Mar. 7___ 9 958 4,369 215 24 804 1,233 11 2,083 5,589 2,477 24 787 1,665 647 880 1 685 June 30.. 9,752 4,388 173 21 790 1,269 9 2,126 5,364 2,385 13 715 1,657 579 878 1,522 Sept. 28. 9,958 4,399 156 21 784 1,303 9 2,127 5,558 2,550 15 766 1,770 596 903 1,509 Dec. 31.. 10,113 4,444 1,531 138 25 243 1,353 5 1,149 5,669 2,636 11 732 1,893 597 982 1,453 1939—Mar. 29..10,098 4,480 1,597 142 24 226 1,363 6 1,121 5,618 2,578 15 585 1,978 643 1,001 1,397 June 30. _10,109 4,605 1,626 140 22 229 1,402 5 1,180 5,504 2,444 11 563 1,870 683 1,025 1,351 Oct. 2«._ 10,102 4,665 5^37 -', 383 699 1,058 1,297 Dec. 30_.10,224 4,768 1,646 163 20 224 1,477 4 1,234 5, 466 2.434 31 431 1,972 725 1,061 1,236 1940—Mar. 26 •10,194 4,860 5,334 2,341 719 1,076 1,197 1 Classifications indicated were revised as of Dec. 31, 1938: for explaiiation see BULLETIN for January 1939, pp. 22-23, and BULLETIN for April, 1939, pp. 259-264, 332. 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. * This is a residual item and, because of the revised loan classifications, figures beginning Dec. 31, 1938, are not comparable with earlier figures, «Includes Treasury certificates of indebtedness through 1934. • Breakdown of loans and investments not reported separately. 1 Central reserve city banks. Back figures—See Annual Report for 1937 (tables 52^68). 560 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CONDITION OF ALL MEMBER BANKS—RESERVES AND LIABILITIES [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- Fed- Cash with de- uals, and fied uals, and Bor- ital Call date eral in do- posits part- polit- and U. S. part- polit- Posta row- ac- Re- vault mestic ad- ner- ical offi- Gov- ner- ical sav- For- ings counts serve banks justed ships, sub- cers' ern- ships, 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 2,374 558 2,168 16,647 17,526 1,335 1,681 143 12,267 595 122 3,517 95 698 879 6,7091929—Dec. 31 2,235 405 2.008 12.089 11,830 1.087 657 806 7.803 300 788 3,057 89 146 191 4,837 1933—June 30 7,249 604 3,561 20, 513 19, 116 2,237 566 752 10, 845 512 90 5,615 137 377 28 5,3521938-Mar. 7 8,004 712 4,084 20, 893 19.816 2,314 662 543 10, 874 454 83 6,096 135 331 11 5,368 June 30 8,193 775 3,937 21, 596 20, 439 2,080 53S 707 10, 789 464 70 6,088 130 466 12 5,410 Sept. 28 8,694 746 4,240 22, 293 21,119 2,386 547 790 10,846 462 61 6,510 132 611 6 5, 424 Dec. 31 9,112 777 4,403 22, 364 20,845 2,467 533 775 10.940 461 68 6,816 133 629 7 5,467 939—Mar. 29 10,011 712 4,674 23, 587 22,448 2, 532 790 . 694 11,063 441 59 7,097 142 607 5 5,496 June 30 11 617 774 •5.304 25. m 23. 983 2,300 666 675 1. 104 418 51 8.243 •142 •757 5 5, 530 Oct. 2 11.604 841 5, 506 25, 681 24, 604 2,321 563 743 1.215 432 51 8. 507 144 759 3 5. 522 Dec. 30 12, 279 862 6 5,634 26, 461 24, 965 2,499 558 725 11,368 411 52 8,717 6145 »737 2 5,562 940—Mar. 26 New York City s 827 68 179 4,750 5.847 128 1, 180 20 1,112 33 18 1,198 40 597 179 2,105 929-Dec. 31 846 46 101 4,358 4.676 96 461 332 671 4 110 1,255 22 128 8 1,582 933 -June 30 2,941 59 95 6, 336 6,429 185 327 360 694 67 2,173 334 12 1, 596 938—Mar 7 3,517 65 119 6,698 6,900 273 367 123 ' 694 32 2,514 291 1, 587 June 30 3,743 70 91 7,026 7,128 196 280 181 653 64 2,498 411 2 1,589 Sept. 28 4,104 68 109 7,168 7,273 280 195 139 652 36 2,687 442 1,593 Dec. 31 4,582 63 156 7,605 7,677 260 272 135 655 53 2,731 553 1,592 939—Mar. 29 4,975 61 112 8,012 8,281 288 472 84 653 46 2,992 524 1,586 June 30 5,929 85 •109 8,676 8.812 321 340 72 683 52 3. 568 •670 1 1. 587 Oct. 2 5, 915 89 125 8,809 9,030 251 178 74 603 43 3.542 1 605 1, 592 Dec. 30 6,386 84 •163 9,562 9,652 219 260 68 742 35 3,629 •1 6672 1,601 940—Mar. 26 City of Chicago « 169 13 133 957 1,041 42 32 8 332 58 2 310 19 33 41 316 929—Dec. 31 232 34 203 912 870 87 16 46 358 1 6 259 2 204 933 -June 30 566 22 135 J.372 1.270 170 17 92 445 16 576 7 245 938—Mar. 7 936 31 208 L, 523 ,386 221 23 86 443 16 688 6 249 June 30 856 32 198 ,585 1,455 204 24 62 439 21 636 10 256 Sept. 28 884 35 235 ,688 1,597 181 29 83 452 9 658 9 257 Dec. 31 705 22 178 ,250 1,182 141 26 83 452 12 834 10 261 939—Mar. 29 897 26 235 ,666 L, 565 197 22 60 471 17 746 12 270 June 30 1,080 37 «237 ,747 L, 632 195 27 60 469 21 3 6853 6[4 270 Oct. 2 993 42 283 .739 .676 167 24 80 483 10 3 879 9 250 Dec. 30 909 25 3195 1^ 544 1,503 133 18 80 482 11 5 3997 37 253 940—Mar. 26 Reserve City Banks 751 156 947 5,22> 5.547 423 300 76 4,433 371 41 1,604 30 64 292 2,029 929-Dec. 31 705 122 1,002 3,76( 3 708. 349 108 312 2.941 208 388 1,315 59 15 16 1. 533 933 -June 30 2,376 213 1,632 6,848 6.455 809 121 234 4, 198 269 33 2,461 116 34 5 1,736 938—Mar. 7 2,289 300 1,951 6,934 6.668 812 146 266 4,238 262 31 2,514 113 32 L, 753 June 30 2,311 322 1,862 7,078 6,843 711 120 356 4,209 233 23 2,557 107 43 L, 764 Sept. 28 2,354 321 1,940 7,214 7,0 54 796 170 424 4, 233 269 17 2,719 108 57 1,777 Dec. 'U 2,459 342 2,106 7,326 6,899 889 123 420 4,276 243 22 2,813 108 64 2 L, 795939—Mar. 29 2,735 318 2,210 7, 654 7.331 917 160 415 4,320 233 19 2,920 115 69 ,812 June 30 3,053 323 2. 485 8.017 7.803 801 158 410 4.310 198 14 3,307 «116 671 .821 Oct. 2 3,118 348 2. 485 8.176 8.002 813 190 435 4,362 240 14 3. 516 117 53 ,828 Dec. 30 3,336 364 2,632 8,400 7,978 942 150 431 4,386 214 12 3,525 •115 656 L. 833940—Mar. 26 Country Banks 627 321 908 5.711 5.091 742 169 39 6,390 133 61 405 6 3 367 2,258 929—Dec. 31 452 203 702 3, 054 2. 576 555 72 116 3.833 86 285 228 7 1 167 1,517 933 -June 30 1,366 310 1,700 5.957 4,963 1,073 101 66 5,508 159 56 403 20 1 11 1,774 938—Mar. 7 1,263 316 1,806 5, 738 4.863 1,008 126 68 5,499 144 52 380 22 2 11 1,778 June 30 1,282 351 1,786 5,908 5,013 969 114 108 5, 488 147 46 398 23 2 11 1,801 Sept. 28 1,353 322 1,956 6,224 5.215 1.128 154 143 5.509 147 44 446 23 2 6 1,798 Dec. 31 1,367 350 1,963 6,183 5, 087 1,176 114 137 5, 557 153 46 438 25 2 5 1,818 939—Mar. 29 1,403 307 2,117 6,255 5.272 I. 130 135 136 5,619 145 40 439 26 2 5 1,828 June 30 1, 555 329 2 473 6. R77 5, 736 1,073 131 133 5. 632 148 35 6515 •26 62 4 1, 852 Oct. 2 1,578 363 2, 614 .6,866 5. 896 1,000 172 154 5, 677 140 35 571 26 2 3 1,851 Dec. 30 1,648 389 2,645 6,954 5,832 1,205 131 147 5,757 151 35 6566 629 62 2 1,875 940—Mar. 26 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 Keserve Ranks (transit account)," known as "Due to Federal Reserve Banks (deferred credits)" prior to Dec. 31,1935. 4 U. 8. Treasurer's time deposits, open account, are combined with postal savings (time) deposits. 6 Central reserve city banks • Partly estimated Back figures.—See Annual Report for 1937 (tables 52-58). JUNE 1940 561 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

WEEKLY REPORTING MEMBER BANKS-NEW YORK CITY AND OUTSIDE LOANS AND INVESTMENTS [Monthly data are averages of Wednesday figures. In millions of dollars.] Loans Investments Loans for U. £5. Governmentobligations Com- purchasing Total mer- or carrying Date or month m l v o a i e e n a n s n n d - t t - s s Total t d c a r i i u i n n a a s d - l l - , , p O m k a p p a e e r t e n - r br T s o o e k c - urities 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 O lo t a h n e s r Total Direct G a u n a - r- O r s i e t t c h ie u e s - 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 Total—101 Cities 1939—April 21, 727 8,127 305 697 537 1,144 1,527 13, 600 8,225 342 2,011 5,872 2,033 3,342 December 23,353 8,802 4,400 319 759 506 1,189 1,583 14,551 8,774 672 2,039 6,063 2,412 3,365 1940—January 23,157 8,587 4,331 320 651 496 1,184 1,556 14,570 8,833 658 1,757 6,418 2,410 3,327 February 23,220 8,520 4,317 328 611 481 1,184 1,545 14,700 8,862 642 1,746 6,474 2,419 3,419 March 23,380 8,604 4,371 335 634 476 1,186 1,551 14, 776 8,904 627 1,776 6,501 2,384 3,488 April 23,489 8,646 4,414 335 624 1,182 1,569 14,843 8,941 575 1,839 6,527 2,398 3,504 Mar. 6 23,355 8,591 4,355 335 638 477 1,184 1,546 14, 764 8,900 672 1,725 6,503 2,400 3,464 Mar. 13 _. 23,437 8,616 4,367 333 659 476 1,183 1,550 14,821 8,943 673 1,780 6,490 2,387 3,491 Mar. 20 _. 23,398 8,606 4,379 338 628 473 1,185 1,553 14, 792 8,941 645 1,796 6,500 2,369 3,482 Mar. 27.. 23,329 8,603 4,383 335 478 1,192 1,557 14, 726 8,830 516 1,802 6,512 2,379 3, 517 Apr. 3 23,315 8,649 4,414 337 625 476 1,185 1,561 14, 666 8,848 509 1,821 6,518 2,380 3,438 Apr. 10 23,466 8,631 4,393 339 630 474 1,179 1,567 14, 835 8,938 587 1,822 6,529 2,379 3,518 Apr. 17 8,653 4,430 331 619 474 1,183 1,569 14,936 9,002 608 1,840 6,554 2,406 3,328 Apr. 24.... 23'584 8,650 4,419 332 623 473 1,182 1,578 14, 934 8,975 596 1,871 6,508 2,427 3,532 Mayl 23, 542 8,661 4,409 326 626 474 1,187 1,587 14,881 8,960 593 1,871 6,496 2,427 3,494 May 8 23, 576 8,654 4,404 331 618 473 1,193 1,584 14, 922 9,032 646 1,900 6,486 2,434 3,456 May 15 23, 592 8,643 4,414 328 602 473 1,191 1,592 14,949 9,088 650 1,909 6,529 2,387 3,474 May 22 23,544 8,562 4,391 327 544 474 1,193 1,589 14, 982 9,105 673 1,919 6,513 2,389 3,488 New York City 1939—April 8,010 2,795 1,379 117 555 195 110 5,215 2,946 146 741 2,059 1,045 1,224 December. 9,057 3,108 1,700 114 590 176 113 378 5,949 3,525 499 806 2,220 1,227 1,197 1940—January.. _ 8,752 2,980 1,671 110 503 171 112 372 5,772 3,365 274 710 2,381 1,228 1,179 February 8,810 2,918 1,650 112 465 161 112 370 5,892 3,368 187 722 2,459 1,268 1,256 March 9,000 2,964 1,676 115 485 160 114 369 6,036 3,466 182 789 2,495 1,249 1,321 April 9,108 2,965 1,686 111 160 119 366 6,143 3,585 170 888 2,527 1,253 1,305 Mar. 6 8,894 2,953 1,664 117 482 159 112 369 5,941 3,373 190 710 2,473 1,263 1,305 Mar. 13 9,013 2,980 1,675 116 504 159 113 370 6,033 3,465 180 785 2,500 1,247 1,321 Mar. 20... 9,036 2,970 1,684 115 485 159 113 6,066 3,520 185 830 2,505 1,236 1,310 Mar. 27. 9,057 2,953 1,679 112 467 164 119 6,104 3,505 174 831 2,500 1,251 1,348. Apr. 3. 9,025 2,976 112 481 162 118 366 6,049 3,543 176 867 2,500 1,241 1,265 Apr. 10 9,084 2,956 1,670 112 489 160 119 364 6,128 3,574 175 873 2,526 1,234 1,320 Apr. 17 9,165 2,967 1,691 110 479 159 119 367 6,198 3,619 165 892 2,562 1,258 1,321 Apr. 24 9,159 2,961 1,689 109 480 159 119 3,604 163 921 2,520 1,278 1,316 Mayl 9,121 2,958 1,679 108 476 160 120 369 6,163 3,601 185 917 2,499 1,278 1,284 May 8 9,174 2,958 1,676 111 477 160 120 370 6,216 3,681 237 944 2,500 1,296 1,239 May 15 9,180 2,936 1,680 108 458 159 120 374 6,244 3,729 244 956 2,529 1,259 1,256. May 22 9,165 1,671 107 403 160 120 371 3,767 258 962 2,547 1,268 1,261 Outside New York City 1939—April 13, 717 5,332 2,469 188 142 342 1,034 1,144 8,385 5,279 196 1,270 3,813 988 2,118. December 14,296 5,694 2,700 205 169 330 1,076 1,205 8,602 5,249 173 1,233 3,843 1,185 2,168 1940—January 14,405 5,607 2,660 210 148 325 1,072 1,184 8,798 5,468 384 1,047 4,037 1,182 2,148 February 14,410 5,602 2,667 216 146 320 1,072 1,175 5,494 455 1,024 4,015 1,151 2,163 March 14,380 5,640 2,695 220 149 316 1,072 1,182 8,740 5,438 445 987 4,006 1,135 2,167 April 14,381 5,681 2,728 224 142 314 1,063 1,203 8,700 5,356 405 951 4,000 1,145 2,199- Mar. 6... 14,461 5,638 2,691 218 156 318 1,072 1,177 8,823 5,527 482 1,015 4,030 1,137 2,159 Mar. 13 14,424 5,636 2,692 217 155 317 1,070 1,180 8,788 5,478 493 995 3,990 1,140 2,170 Mar. 20 14, 362 5,636 2,695 223 143 314 1,072 1,184 8,726 5,421 460 966 3,995 1,133 2,172 Mar. 27 14, 272 5,650 2,704 223 142 314 1,073 1,188 8,622 5,325 342 971 4,012 1,128 2,169 Apr. 3 14,290 5,673 2,721 225 144 314 1,067 1,195 8,617 5,305 333 954 4,018 1,139 2,173 Apr. 10. 14, 382 5,675 2,723 227 141 314 1,060 1,203 8,707 5,364 412 949 4,003 1,145 2,198- Apr. 17. 14,424 2,739 221 140 315 1,064 1,202 8,738 5,383 443 948 3,992 1,148 2,207 Apr. 24 14, 425 2,730 223 143 314 1,063 1,210 8,736 5,371 433 950 3,988 1,149 2,216 Mayl 14, 421 5,703 2,730 218 150 314 1,067 1,218 8,718 5,359 408 954 3,997 1,149 2,210 May 8 14,402 5,696 2,728 220 141 313 1,073 1,214 8,706 5,351 409 956 3,986 1,138 2,217 May 15 14, 412 5,707 2,734 220 144 314 1,071 1,218 8,705 5,359 406 953 4,000 1,128 2,218- May 22 14, 379 5,693 2,720 220 141 314 1,073 1,218 5,338 415 957 3,966 1,121 2, 227 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. 562 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

WEEKLY REPORTING MEMBER BANKS—NEW YORK CITY AND OUTSIDE RESERVES AND LIABILITIES [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 B s w F e R a e e r n r i e a t v d k - h l e - s v C a i a n u s l h t b m w a d e n i o s t k - t h i s c j p u m o s a d a t d s e e n i - - d t d s : s p u v n h a c a a o n e i i d r p l r r d s t - - - s - , , S p s d s a i i t o u i c o a n v l a b n t d i i e l t - s - - s c C h c o a f e e e e i f n t c e f r c r i d k s t d . - i ' s - , m U G e e r . o n n S v - t . - 1 s p u n v h c a a a o n e i i d p r l r r d s t - - - s - , , S p s d s a i i t o u i c o a n v l a b t n i d i e l t - s - - s P in s o a g s v s t a * 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 - - c C o i a t u a c a p n - l - ts Date or month pora- porations tions Total 101 Cities 7,973 424 2,596 16,455 16,000 1,372 428 620 4,974 235 6,473 116 638 1939—April 9,030 532 3,063 18,862 18,673 1,316 501 558 5,043 207 7,838 122 740 3,713 December 10,065 484 3,087 18,946 18,690 1,247 465 566 5,057 202 7,955 124 740 3,713 1940—January 10,273 473 3,104 19,210 18,836 1,336 458 561 6,067 199 7,997 124 745 3,719 February 10,394 468 3,184 19,344 18,945 1,371 440 560 5,133 193 8,144 124 736 3,721 March 10,661 465 3,229 19, 515 19,058 1,403 461 561 5,147 186 8,295 117 725 3,735 April 10,411 457 3,111 19,341 18,895 1,344 448 560 5,099 201 8,094 125 728 3,725 Mar. 6 10,477 476 3,181 19,507 19,158 1,345 416 560 5,142 198 8,142 126 730 3,719 Mar. 13 10,318 461 3,191 19,251 18,829 1,362 419 559 5,146 185 8,158 126 751 3,722 Mar. 20 10,371 479 3,253 19, 276 18,898 1,435 478 560 5,147 188 8,180 119 735 3,718 Mar. 27 10,437 452 3,299 19,175 18,743 1,351 455 562 5,165 188 8,306 118 726 3,732 Apr. 3 10,611 473 3,185 19,462 18,968 1,430 449 560 5,168 189 8,212 116 722 3,733 Apr. 10 10,729 462 3,239 19,655 19,288 1,400 457 559 5,128 182 8,348 116 717 3,734 Apr. 17 10,869 471 3,194 19, 764 19, 234 1,433 482 562 5,127 185 8,316 116 734 3,741 Apr. 24 10,859 447 3,177 19,696 19, 253 1,594 524 560 5,121 183 8,344 116 720 3,748 May 1 10,851 479 3,185 19,741 19,073 1,489 384 560 5,120 196 115 714 3,752 May 8 11,050 472 3,284 19,928 19,620 1,513 531 562 5,118 196 8,499 115 709 3,750 May 15 11,196 485 3,269 20, 2 0:19,659 1,528 510 559 5,117 8,371 115 3,752 May 22 New York City 4,651 7,287 7,348 257 268 110 583 2,785 561 1,483 .939—April 5,301 8,391 8,555 240 304 50 620 3,406 674 1,482 December 5,853 8,515 8,663 200 280 47 617 3,471 675 1,487 940—January 6,055 8,796 8,887 230 298 44 613 3,473 682 1,490 February 6,153 8,979 9,112 210 276 44 658 3,529 672 1,490 March 6,259 9,087 9,154 246 282 45 661 3,640 1,496 April 6,198 8,977 9,061 215 285 44 619 3,502 665 1,492 Mar. 6 6,156 82 8,992 9,111 205 252 44 670 3,525 665 1,489 Mar. 13 6,124 85 8,908 9,027 194 252 44 672 3,567 686 1,489 Mar. 20 6,134 138 9,037 9,248 226 315 44 672 3,521 672 1,490 Mar. 27 6,201 131 9,054 9,126 216 271 46 683 3,576 664 1,494 Apr. 3 6,254 82 9,067 9,106 288 286 44 686 3,595 660 1,495 Apr. 10 6,246 83 9,106 9,205 238 265 45 637 3,680 655 1,495 Apr. 17 6, 335 81 9,121 9,178 242 304 44 3,711 672 1,498 Apr. 24 6,336 81 9,082 9,239 327 320 44 633 3,724 659 1,502 May 1 6,235 82 9,059 9,078 234 215 44 631 3,707 655 1,503 May 8 6,388 87 9,147 9,312 266 341 43 632 3,786 652 1,502 May 15 6,499 87 9,332 9,415 251 326 44 632 3,725 1,502 May 22 Outside New York City 3,322 2,514 9,168 8,652 1,115 160 510 4,391 192 18 3,688 116 2,212 .939—April 4,269 441 2,979 10,471 10,118 1,076 197 508 4,423 171 4,432 121 2,231 December 4,212 406 3,007 10,431 10,027 1,047 185 519 4,440 166 4,484 123 2,226 .940—January 4,218 394 3,023 10,414 9,949 1,106 160 517 4,454 166 4,524 123 2,229 February 4,241 391 10,365 9,833 1,161 164 516 4,475 163 4,615 123 2,231 March 4,402 387 3,134 10, 428 9,904 1,157 179 516 159 4,655 117 2,239 April 4,213 382 3,031 10,364 9,834 1,129 163 516 4,480 170 4,592 124 2,233 Mar. 6 4,321 397 3,099 10,515 L0,047 1,140 164 516 4,472 167 4,617 125 2,230 Mar. 13 4,194 386 3,106 10,343 9,802 1,168 167 515 4,474 157 4,591 125 2,233 Mar. 20 4,237 400 3,115 .0, 239 9,650 1,209 163 516 4,475 159 4,659 118 2,228 Mar. 27 4,236 376 3,168 L0,121 9,617 1,135 184 516 4,482 161 4,730 117 2,238 Apr. 3 4,357 395 3,103 L0,395' 9,862 1,142 163 516 4,482 162 4,617 116 2,238 Apr. 10 4,483 381 3,156 .0, 549 10,083 1,162 192 514 4,491 155 4,668 116 2,239 Apr. 17 4,534 394 3,113 .0, 643 L0, 056 1,191 178 518 4,488 158 4,605 116 2,243 Apr. 24 4,523 373 3,096 [0, 614 .0, 014 1,267 204 516 4,488 156 4,620 116 2,246 May 1 4,616 402 3,103 :0, 682 9,995 1,255 169 516 4,489 169 4,662 115 2,249 May 8 4,662 395 3,197 .0, 781 L0,308 1,247 190 519 4,486 171 4,713 115 2,248 May 15 4,697 404 3,182 .0,869 ^0,244 1,277 184 515 4,485 168 4,646 115 2,250 May 22 r Revised. i Demand deposits other than interbank and U. 8. 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. JUNE 1940 563 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

WEEKLY REPORTING MEMBER BANKS—BY FEDERAL RESERVE DISTRICTS LOANS AND INVESTMENTS [In millions of dollars] Loans Investments Loans for U. S. Government obligations Com- purchasing Total mer- or carrying d F i e st d r e ic r ( a t 1 l 9 a 4 R n 0 e d ) s e d r a v t e e m l v o a i e e n a n s n n d - t t s - s Total t c d a r i u i i n n a s a - d - l l , , p O m k a p a p e e r t e n - r b T r s o o e - curitie T s o e l R o st a e a n a t l s e L ba o t n a o k n s s O lo t a h n e s r Total Direct G a u n a - r- O r s i e t t c h ie u e s - r a c g ul r - i- k a e n r d s others Total Bills Notes Bonds teed tural dealers Boston (6 cities) April 24 1,195 620 298 69 21 19 81 1 131 575 397 16 38 343 50 128 May 1 1,192 621 296 68 24 19 81 133 571 393 16 38 339 50 128 May 8 1,191 620 299 68 20 19 81 1 132 571 392 16 38 338 50 129 May 15 1 194 622 298 70 21 19 80 1 133 572 3'94 16 38 340 49 129 May 22 _ - - 1,191 618 298 69 17 19 81 1 133 573 394 15 38 341 48 131 New York (8 cities)* April 24 9,999 3,305 1,802 116 487 211 195 37 457 6,694 3, 875 173 957 2,745 1,356 1,463 May 1 9,966 3,302 1,793 115 481 212 196 46 459 6,664 3,879 195 953 2,731 1,355 1,430 May 8 10 021 3,303 1,791 118 482 212 196 44 460 6,718 3,960 246 980 2,734 1,372 1,386 May 15 10,033 3,282 1,794 115 463 212 196 37 465 6,751 4,011 252 992 2,767 1,334 1,406 May 22 10,018 3,214 1,784 114 408 212 197 37 462 6,804 4,049 265 998 2, 786 1,343 1,412 Philadelphia (4 cities) April 24 1 159 439 210 29 24 31 49 1 95 720 342 31 311 102 276 M^ay 1 1,164 445 212 29 25 32 50 1 96 719 342 31 311 101 276 May 8 - -- 1,164 446 213 30 25 32 50 1 95 718 347 31 316 94 i 277 May 15 1 169 445 210 30 26 32 50 1 96 724 355 31 324 92 m May 22 1,172 446 209 31 26 33 50 1 96 726 355 31 324 91 280 Cleveland (10 cities) April 24 1,937 708 277 9 21 25 173 2 201 1,229 818 11 156 651 123 288 May 1 1 936 709 275 8 21 25 174 2 204 1,227 816 11 156 649 124 287 May 8 1,923 709 276 8 20 24 174 2 205 1,214 804 11 156 637 124 286 May 15 1,920 709 275 8 20 25 175 1 205 1,211 805 11 156 638 124 282 May 22 1,898 711 275 8 23 24 175 2 204 1,187 779 11 156 612 125 283 Richmond (12 cities) April 24 684 272 123 12 3 15 42 77 412 293 137 156 52 67 May 1 685 272 124 11 3 15 42 77 413 294 136 158 52 67 May 8 692 270 122 11 3 15 42 77 422 303 141 162 52 67 May 15 691 269 122 11 3 14 42 77 422 305 142 163 52 65 May 22 691 270 122 11 3 14 42 78 421 303 141 162 53 65 Atlanta (8 cities) April 24 632 309 160 4 5 11 31 98 323 149 1 34 114 69 105 May 1 634 307 159 4 5 10 31 1 97 327 151 1 35 115 71 105 May 8 631 308 158 4 5 11 32 1 97 323 149 1 35 113 69 105 May 15 626 307 158 4 5 10 32 1 97 319 149 1 35 113 66 104 May 22 624 306 156 4 5 11 32 98 318 150 1 35 114 64 104 Chicago (12 cities)* April 24 3,359 939 564 38 38 74 114 111 2,420 1,619 291 290 1,038 276 525 May 1 3,335 940 563 38 39 75 115 110 2,395 1,595 270 291 1,034 276 524 May 8 - --- 3,331 936 562 38 36 75 117 108 2,395 1,590 267 290 1,033 276 529 May 15 ._ 3,339 953 574 39 39 75 118 108 2,386 1,583 262 288 1,033 271 532 May 22 3,333 947 569 39 37 74 118 110 2,386 1,586 261 289 1,036 267 533 St. Louis (5 cities) April 24 . 741 330 188 11 5 13 53 1 59 411 235 51 33 151 69 107 May 1 748 332 189 11 5 13 53 1 60 416 240 55 33 152 68 108 May 8 — 750 331 188 11 5 12 54 1 60 419 242 57 33 152 69 108 May 15 750 330 189 10 5 13 53 1 59 420 244 59 33 152 68 108 May 22 754 329 189 10 4 13 53 1 59 425 249 66 32 151 68 108 Minneapolis (8 cities) April 24 430 199 104 4 1 7 10 73 231 156 10 31 115 22 53 May 1 417 199 104 4 1 7 10 73 218 147 1 31 115 22 [! 49 May 8 413 200 102 4 1 7 11 75 213 144 29 115 22 47 May 15 407 195 97 4 1 7 11 75 212 143 29 114 22 47 May 22 401 190 97 4 1 7 10 71 211 143 30 113 22 46 Kansas City (12 cities) April 24 694 307 182 23 4 10 29 59 387 178 18 67 93 70 139 May 1 695 307 181 23 5 10 29 59 388 179 18 68 93 70 139 May 8 694 306 181 24 4 10 29 58 388 178 18 68 92 70 140 May 15 692 304 180 22 4 10 29 59 388 175 17 69 89 69 144 May 22 .. 696 303 179 22 4 10 29 59 393 179 21 69 89 69 145 Dallas (9 cities) April 24 527 267 176 2 3 13 22 50 260 152 23 40 89 50 1,58 May 1 527 269 175 2 5 13 22 51 258 150 21 40 89 49 | 59 May 8 _._ 525 271 176 2 5 13 23 51 254 148 25 40 83 47 59 May 15 522 267 176 2 2 13 22 51 255 151 27 40 84 46 58 May 22 . 524 267 175 2 3 13 22 51 257 152 28 41 83 46 59 San Francisco (7 cities) April 24 2,227 955 335 15 11 44 383 167 1,272 761 2 57 702 188 323 May 1 . 2,243 958 338 13 12 43 384 168 1,285 774 5 59 710 189 3 322 May 8 2,241 954 336 13 12 43 384 166 1,287 775 5 59 711 189 1J 323 May 15 2,249 960 341 13 13 43 383 167 1,289 773 5 56 712 194 322 May 22 2,242 961 338 13 13 44 384 1 168 1,281 766 5 59 702 193 322 City of Chicago* April 24 2,247 582 405 18 32 64 14 49 1,665 1,165 290 160 715 142 358 Mayl 2,220 579 403 18 31 65 14 48 1,641 1,143 270 161 712 141 357 May 8 2,217 578 403 18 30 64 17 46 1,639 1,137 267 160 710 141 361 May 15 2,227 594 413 19 34 65 17 46 1,633 1,132 262 159 711 135 366 May 22 2,225 590 411 19 33 64 17 46 1,635 1,134 261 159 714 135 366 * 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. 564 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

WEEKLY REPORTING MEMBER BANKS—BY FEDERAL RESERVE DISTRICTS RESERVES AND LIABILITIES [In millions of dollars] Demand deposits, Time deposits, Interbank except interbank except interbank deposits B s s w F e e R a R e r e r i n r v e e a t d v k - h e - l - e s s v C a i a n u s l h t b m a w B a n d e i n a c o s t e l k h - t - s i s c j m p u D o s d a a t d e s e n e i - - - t d d s 1 s I u p v n h a c n a a i e o n i d d l r p r r d s t i - - - s - - , , S p s d s a i t i o u c i a o n v l a b t n i d e i l - t s - - s c C c h a o f e e e e i f n t e f c r r c i d s d t k . - i ' s - , m u G e e . r o n n v s t - * - . s n I u p v h a c n e a a i o n i d d l r r p r d s - t i - - s - - , , S p s d s a i t i o u c i a o n v l a b t n i d e i l t - s - - s P i s n o a g s v s t - a 2 l m D D a e n o b - d m an e k T s s t i i m c e b e F a i o n g r k n - s r B i o n o w g r s - - c C o i a t a u c a p n - l - ts d F i e s d t e ri r c ( a t 1 l 9 a 4 R n 0 e ) d s e d r a v t e e pora- porations tions Boston (6 cities) 523 142 170 1,223 1,172 95 18 13 233 342 22 248 April 24 520 141 174 1,216 1,175 99 18 13 233 346 21 248 May 1 527 143 173 1,222 1,169 95 14 13 233 349 20 248 May 8 533 143 172 1,220 1,183 90 19 13 233 358 19 246 May 15 544 144 169 1,233 1,189 91 17 13 233 352 18 246 May 22 New York (8 cities)* 6,521 223 9,772 9,678 413 321 64 1,008 3,790 673 1,620 April 24 6,506 91 218 9,735 9,734 516 338 64 1,002 3,808 660 1,624 May 1 6 6 6 , , , 4 6 5 0 5 4 1 1 9 1 9 9 0 6 5 0 2 2 2 2 1 1 1 5 5 1 9 9 0 , , , 7 8 0 2 1 2 7 5 2 9 9 9 , , , 5 9 8 6 0 0 0 4 8 4 4 4 6 7 3 4 2 7 3 2 34 6 3 4 1 1 6 6 6 4 4 4 1 1 , , 0 0 0 0 0 0 3 3 3 , , , 7 8 8 9 6 0 0 7 3 6 6 6 5 5 3 6 3 8 1 1 1 , , , 6 6 6 2 2 2 6 5 5 M M M a a a y y y 1 8 2 5 2 5 5 5 5 5 4 3 3 2 2 3 6 1 7 7 2 2 2 2 1 0 0 0 0 8 2 2 2 2 2 1 1 2 1 1 2 6 2 5 5 1 1 1 1 1 , . , , , 0 0 0 0 0 1 2 1 1 3 8 6 7 7 3 9 9 9 9 6 5 7 6 4 6 8 7 1 1 1 1 1 0 1 2 1 1 4 6 0 9 7 1 1 7 7 7 1 0 5 5 5 5 5 3 4 4 3 4 2 2 2 2 2 5 6 6 5 6 9 0 3 9 2 4 4 4 4 4 3 3 2 3 2 1 4 2 9 4 5 5 5 5 5 2 2 2 2 2 1 1 1 1 1 6 6 5 6 6 Ph M A M M M ila p a a a a d r y y y y i e l l p 8 2 1 1 2 h 2 5 4 ia (4 cities) Cleveland (10 cities) 604 44 327 1,354 1,314 101 20 47 723 425 1 April 24 617 43 335 1,366 1,327 113 20 47 724 433 1 380 May 1 611 46 329 1,348 1,301 107 17 47 724 429 1 May 8 625 45 341 1,365 1,347 107 19 47 722 436 1 May 15 640 46 346 1,372 1,334 111 47 722 426 1 380 May 22 Richmond (12 cities) 196 22 265 514 493 56 35 199 311 1 April 24 192 19 257 510 491 59 33 199 305 1 May 1 195 22 251 515 491 57 33 199 308 May 8 198 21 251 514 502 54 33 199 311 May 15 197 22 257 522 502 55 33 199 May 22 Atlanta (8 cities) 137 14 238 416 387 72 43 185 309 94 April 24 132 12 236 410 388 73 43 185 310 94 May 1 144 13 238 419 386 74 43 185 313 94 May 8 145 13 241 413 398 46 186 313 95 May 15 137 14 242 417 389 43 186 304 95 May 22 Chicago (12 cities)* 1,351 65 585 2, 687 2, 552 272 128 953 1,217 393 April 24 1,386 62 585 2,690 2, 563 273 128 953 1,224 395 May 1 1,395 580 2,678 2, 535 265 128 955 1,237 396 May 8 1,422 602 2,710 2,612 275 128 955 1,264 396 May 15 1,450 604 2,759 2,623, 285 128 955 1,242 396 May 22 St. Louis (5 cities) 178 477 475 42 15 188 354 April 24 175 178 470 469 42 15 188 354 May 1 174 180 471 468 43 15 188 356 May 8 185 176 471 479 44 15 188 362 95 May 15 194 169 465 468 43 15 376 95 May 22 Minneapolis (8 cities) 86 72 263 233 55 2 117 159 59 April 24 74 68 232 193 63 2 117 160 59 May 1 117 94 293 253 57 1 117 166 59 May 8 105 109 293 266 53 2 117 162 59 May 15 100 116 294 264 54 1 117 158 59 May 22 Kansas City (12 cities) 191 307 525 509 74 23 143 422 105 April 24 190 306 527 502 78 23 143 418 105 May 1 196 304 532 502 75 23 143 418 105 May 8 198 317 544 529 75 23 143 418 105 May 15 191 312 542 516 75 23 143 411 105 May 22 Dallas (9 cities) 136 295 470 458 49 31 127 April 24 136 297 479 .453 54 30 127 261 May 1 137 302 477 450 53 31 127 267 May 8 135 314 479 471 47 31 127 272 May 15 137 307 479 460 46 31 127 May 22 San Francisco (7 cities) 419 308 1,046 100 108 296 347 April 24 404 301 1,044 991 107 108 294 347 May 1 411 307 1,043 1,002 110 108 297 348 May 8 419 325 1,071 1,047 108 107 302 348 May 15 424 317 1,068 1,030 109 107 299 349 May 22 City of Chicago 1,023 262 1,818 1,772 133 79 493 925 252 April 24 1,055 259 1,818 1,774 138 79 494 928 253 May 1 1,074 256 1,818 1,755 140 79 494 942 254 May 8 1,100 269 1,844 1,808 154 80 493 967 254 May 15 1,119 282 1,893 1,827 162 79 493 952 254 May 22 * See note on preceding page. * 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. JUNE 1940 565 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

COMMERCIAL PAPER AND BANKERS' ACCEPTANCES OUTSTANDING [In millions of dollars] Dollar acceptances outstanding Held by Based on Com- End of month p m c a i p e a r e l - r Total Accepting banks Feder B a a l n R ks eserve G sh o i o p d p s e s d t o b r e e t d w i e n e n or st o a u n t d - - st o a u n t d - - For ac- Im- Exports Dollar points in ing i ing Total O bi w lls n bo B u il g ls ht o c w F o n u o n r a t c- c fo o c r o u e r n i r g t e n o - f Others U in . t S o . U fro .S m . ch e a x n - ge U.S. F c o o re u i n g - n spond- tries ents 1939—January 195 255 204 122 82 52 89 57 2 62 55 February 195 248 198 122 76 60 87 67 2 48 54 March 191 245 191 117 74 64 87 68 2 42 56 April 192 238 189 118 72 49 80 66 1 38 57 May 189 247 192 124 68 65 82 51 19 36 59 JllTlft _ _„„„„„._„ 181 245 191 122 69 s 53 81 45 20 39 60 July 194 236 188 119 69 48 75 41 19 39 61 August .. .. . .^ 201 235 191 128 63 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 32 214 223 172 103 69 51 96 37 16 50 24 December 210 233 175 105 70 57 103 39 16 64 22 1940—January 219 229 179 111 68 50 101 38 16 51 23 February 226 233 188 123 65 45 95 44 15 51 27 March 233 230 184 121 63 46 90 47 14 49 30 April 239 223 178 118 61 45 86 45 13 46 33 1 As reported by dealers; includes some finance company paper sold in open market. » Less than $500,000. Back figures.—Bee Annual Keport 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 » 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 i e s rs' a i b n n p a a v d l a c a e c r n s t t o r n c t u a m e e n d s r e t i s s n n i ' n g t a i b n n a a v d l c a e f c n i s t o r r c t m u a m e n d s e t i s n n in g t 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 * Free O (n th et e ) r m p t i a e r n a r n v t I d t n e n i a s e n t n r g - s d ' m t i r e n f a n v i I d r n t e m i s n a t n g - d a c c ( a c n p I o e n i u t t n ) al ts accounts accounts 1937—June 1,489 55 161 214 1,217 266 92 25 13 397 September 1,363 48 128 239 1,088 250 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 11 296 September 823 29 76 213 559 257 68 20 7 300 December _ _ 991 32 106 190 754 247 60 22 5 305 1939—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 76 183 661 230 69 21 0 284 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 71 202 566 235 58 20 6 275 September. . 856 20 64 217 520 305 87 22 11 288 October 894 21 72 200 577 289 76 21 9 284 November_._ 914 20 77 195 623 272 67 21 8 282 December 906 16 78 207 637 266 69 23 7 277 1940—January 886 15 70 198 602 262 71 22 6 272 February 893 16 72 195 616 253 74 23 7 271 March 886 15 78 186 615 247 70 21 7 270 April 910 15 72 192 626 252 73 21 9 271 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. 1 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 th« 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.—Bee BULLETIN for March 1938, p. 196, and (for data in detail) Annual Report for 1937 (table 69). 566 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OPEN-MARKET RATES IN NEW YORK CITY COMMERCIAL LOAN RATES [Per cent per annum] AVERAGES OF RATES CHARGED CUSTOMERS BY BANKS IN PRINCIPAL CITIES Prevailing rate * on— Average rate on— [Per cent per annum] Aver- 7 other mo Y w n e e t a e h r k , , or m P c r e o i r m m ci - e al b P e a r r n i s m k- e /cW S ni t e ao o x Tn - c I g k eeta c S h c t e a o a x n l - c l g k e u N . e u w s ry . b r i r l e l 9 s a 1- s- y T i U e u a r l . e g r d e y a S s o . - n 1 T 9 o c t i a ti l es Y N C o e it w r y k e E N r c a n o i s t r t i a t e e h n s r - n d 1 W e 1 r c n e i S s ti o t a e e u n s r t d n hpaper, accept- time loan issues day 3-to-5 4 to 6 a on on re- of- deal- year 1934 average 3.45 2.45 3.71 4.32 months days da y y u s n a e l w s - w fe i r t e h d in q e u rs o ' - notes 1 1 9 9 3 3 5 6 a a v v e e r r a a g g e e 2 2 . . 9 6 3 8 1 1 . . 7 7 6 2 3 3 . . 3 0 9 4 3 3. . 4 7 0 6 period* tation 1937 average— 2.59 1.73 2.88 3.25 1938 average 2.53 1.69 2.75 3.26 1939 average i 2.78 2.07 2.87 3.51 1937 average- .95 .43 1.25 1.00 .447 .28 1.40 ^S average. ~ .81 .44 1.25 L.00 .053 .07 .83 Monthly figures 1939 average.— .59 .44 1.25 L.00 .022 .05 .59 1938—January 2.60 1.70 2.92 3.28 February 2.49 1.70 2.65 3.21 1939—April— .56 .44 ]L.25 L.00 .019 .03 .50 March 2.48 1.65 2.64 3.28 May .56 .44 L.25 L.00 .006 .03 .42 April 2.48 1.70 2.60 3.25 June .56 .44 •L.25 L.00 .006 .03 .39 May 2.48 1.70 2.64 3.20 July .56 .44 L.25 L.00 .017 .04 .45 June 2.56 1.70 2.78 3.31 Aug. .56 .44 L.25 :L.00 .046 .05 .48 July 2.57 1.70 2.78 3.35 Sept .69 .44 :L.25 :L.00 .102 .14 1.07 August 2.52 1.67 2.71 3.28 Oct. .69 .44 L.25 L.00 .028 .05 .77 September._. 2.53 1.70 2.74 3.26 Nov .63 .44 L.25 :L.00 .018 .05 .64 October 2.57 1.70 2.90 3.21 Dec. .56 .44 L.25 L.00 .012 .04 .51 November. __ 2.49 1.70 2.68 3.20 1940—Jan .56 .44 1.25 :L.00 .001 .01 .47 December— 2.60 1.70 2.95 3.28 Feb .56 .44 1.25 L.00 .004 .02 .46 Mar .56 .44 1.25 L.00 .02 .42 1939—January 2.64 1.73 2.97 3.32 April .56 .44 1.25 L.00 .003 .02 .45 February 2.52 1.70 2.69 3.26 Week ending: Quarterly figures April 27.- VII IX 1.00 .007 .02 .49 1938— September. _. 2.65 2.00 2.75 3.25 May 4 VX 1.00 .008 .02 .45 1939—March 2.95 2.13 3.05 3.77 May 11 7 A* IX 1.00 .016 .03 .48 June 2.91 2.15 3.05 3.62 May 18— %~% 7/i« 1.00 .032 .06 .70 September... 2.68 2.04 2.78 3.31 May 25 Vi« IX 1.00 .067 .08 .77 December 2.59 1.96 2.59 3.32 1940—March 2.65 2.03 2.67 3.35 1 Monthly figures are averages of weekly prevailing rates. 2 Series comprises 273-day bills to October 15, 1937, bills maturing i Averages for 1939 and quarterly figures are on revised basis and are about March 16,1938, from October 22, to December 10,1937, and 91-day therefore not strictly comparable with the earlier series of annual and bills thereafter. monthly figures. 1 Rate negative. Back figures.—See Annual Report for 1937 (tables 43 and 44). Figures Back figures.—See November 1939 BULLETIN, pp. 963-969 for descripfor Treasury bills and Treasury notes available on request. tion and for back figures. BOND YIELDS1 [Per cent per annum] Corporate 4 Year, month, or week T U u r r . e y a S s 2 . - M ip u a n l i ^ c- By ratings By groups Total Indus- Rail- Public Baa trial road utility Number of issues 15 120 30 30 30 30 40 40 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 1939 average 2.36 2.76 3.77 3.01 3.22 4.96 3.30 4.53 3.48 1939—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 November. 2.46 2.69 3.70 3.00 3.16 3.78 4.85 3.25 4.44 3.41 December.. 2.35 2.56 3.69 2.94 3.14 3.74 4.92 3.21 4.47 3.38 1940—January—. 2.30 2.54 3.63 2.88 3.08 3.69 4.86 3.14 4.39 3.35 February.. 2.32 2.60 3.60 2.86 3.05 3.68 4.83 3.12 4.37 3.33 March 2.25 2.58 3.58 2.84 3.04 3.65 4.80 3.09 4.37 3.29 April 2.25 2.56 3.54 2.82 2.99 3.59 4.74 3.05 4.33 3.24 Week ending: April 27___. 2.28 2.56 3.54 2.83 2.99 3.58 4.75 3.05 4.33 3.2a May 4. 2.25 2.55 3.52 2.82 2.98 3.55 4.71 3.05 4.30 3.21 May 11.—. 2.28 2.54 3.50 2.82 2.97 3.53 4.68 3.04 4.27 3.19 May 18 2.43 2.94 3.63 2.92 3.07 3.64 4.90 3.19 4.40 3.30 May 25—. 2.47 3.01 3.77 3.02 3.17 3.75 5.13 3.32 4.60 3.38 1 Monthly and weekly data are averagies of daily figures, except for municipal bonds, which are based on Wednesday figures. 2 Average of yields of all outstanding \onds due or callable after 12 years; see BULLETIN for December 1938, pp. 1045-1046 for description. 3 Standard Statistics Co. * Moody's Investors Service, week ending Friday. Because of limited number of suitable issues, the industrial Aaa and Aa groups have each been reduced from 10 to 4, and the railroad Aaa group from 10 to 5. Back figures.—See Annual Report for 1937 (table 80). Figures for U. S. Treasury bonds available on request. JUNE 1940 567 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BOND PRICES1 STOCK MARKET Corporate 3 Stock prices i Vol- U. S. Munic- ume of Year, month, or date T u r r e y a s a - ipal* Total In tr d ia u l s R ro a a i d l- P ut u i b li l t i y c Year, d m a o te nth, or Pre- Common (index, 1926=100) tr i ( a n in d g - s ferred J thou- Indus- Rail- Public sands of Number of issues. 2-6 60 20 20 20 Total trial road utility shares) 1937 average. 101.7 110.3 93.4 90.1 89,6 100.4 1938 average 103.4 113 7 78.9 82.9 58.6 95.3 Number of issues. _ 20 420 348 32 1939 average 106.0 116.3 81.6 86.0 58.0 100.9 1937 average 136.2 112 131 1,519 1939—April. 106.6 116.4 79.4 83.8 54.5 99.7 1938 average 135.6 83 99 1,100 May 108.3 118.1 80.2 84.8 54.8 101.0 1939 average 141.2 89 105 973 June 109.1 118.6 81.4 86.2 56.2 101.6 July 108.9 118.3 81.6 86.3 56.4 102.1 1939—April ..._ 140.4 82 96 964 August 108.2 116.5 81.0 85.8 55.5 101.7 May 141.8 83 97 548 September- 101.9 107.1 80.9 85.0 59.0 98.6 June 143.9 86 101 507 October.... 102.6 110.7 82.9 86.4 61.6 100.5 July 143.7 86 101 821 November. 104.6 117.5 83.0 87.0 60.2 101.8 August 142.3 86 101 706 December.. 106.1 119.9 82. 1 86.8 58.0 101.6 September... 136.2 92 109 2,595 1940—January.... 106.8 120.2 82.4 87.3 58.2 101.8 October 137.7 95 113 1,050 February _. 106. 6 119.1 82.2 87.3 57.8 101.6 November... 140.7 94 111 907 March 107.5 119.7 82.1 87.3 57.2 101.8 December. __ 141.4 92 108 808 April 107.6 119.8 82.5 87.5 58.2 101.7 1940—January 143.0 93 109 678 February 142.9 92 107 654 Apr. 24 107.1 119.9 82.3 87.4 57.9 101.5 March 141.8 92 108 740 May 1 107.5 120.1 82.3 87.4 57.9 101.5 April 142.3 93 109 1,131 May 8 107.5 120.3 82.3 87.3 58.1 101.4 May 15 104.8 113.0 78.8 84.7 52.5 99.1 Apr. 24 143.0 92 109 856 May 22 104.4 111.8 76.7 83.5 49.2 97.3 May 1 143.1 91 107 741 May 8 143.1 92 108 1,001 May 15 139.4 79 93 3,167 * Monthly data are averages of daily figures except for municipal bonds, May 22 133.7 70 82 1,922 which are averages of Wednesday figures. * Average prices of all outstanding bonds due or callable after 12 years, based on quotations from Treasury Department. Prices expressed in Standard Statistics Co. Monthly data are averages of Wednesday decimals. figures. » Prices derived from average yields, as computed by Standard Sta- » Average prices of industrial high-grade preferred stocks, adjusted to a tistics Co. $7 annual dividend basis. Back figures.—See Annual Report for 1937 (table 79). Figures for U. S. 1 Average daily volume of trading in stocks on the New York Stock Treasury bonds available on request. Exchange. Weekly figures are averages for the week ending Saturday. Back figures.—For stock prices, see Annual Report for 1937 (table 79). CAPITAL ISSUES [In millions of dollars] For new capital For refunding Total Domestic Domestic (new Y m e o a n r t o h r fu i a n r n n e g d d - ) - m T e ( a f i o d e o g n o s t r n d a - t - ) i l c Total S n m a p t i n a c a u d t i l - e - a c F e g ie e r e a s d n l - - i Total Co B n r a p o o n t o n d e d r s a s te Stocks e F ig o n r - * m T e a ( f i o d e o g n o r s t d n - a t - ) i l c Total S n m a p t i n a a c u d i t l - - e a c F e i g e e r e s a d n l - - i 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- » 1930 7,619 6,912 6,004 1,434 87 4,483 2,980 1,503 908 706 527 53 0 474 451 23 179 1931 4,038 3,095 2,860 1,235 75 1,551 1,239 311 235 944 893 21 51 821 789 32 51 1932 1,751 1,197 1,165 762 77 325 305 20 32 554 498 87 93 319 315 4 56 1933 1,063 720 708 483 64 161 40 120 12 343 283 37 26 219 187 32 60 1934 2, 160 1,386 1,386 803 405 178 144 35 0 774 765 136 317 312 312 0 9 1935 4,699 1, 457 1,409 855 150 404 334 69 48 3,242 3,216 365 987 1,864 1,782 81 26 1936 6,214 1,972 1,949 735 22 1,192 839 352 23 4,242 4,123 382 353 3,387 3,187 200 119 1937 3,937 2,138 2,094 712 157 1,225 817 408 44 1,799 1,680 191 281 1,209 856 352 119 1938 — 4.448 2. 359 2.323 971 481 872 807 65 35 2,089 2,061 129 665 1,267 1,236 31 28 1939 „ 5,825 2,276 2,227 931 924 371 280 92 50 3,548 3,460 195 1,537 1,728 1,591 137 88 1939—Apr 358 144 144 64 2 78 48 31 (3) 214 161 11 21 129 106 23 53 May 1.313 117 117 94 2 22 18 3 0 1,196 1,180 8 1,021 151 131 20 16 June 586 274 264 234 0 30 22 9 10 312 312 39 21 252 249 2 0 July 590 318 318 65 203 50 40 10 0 272 272 18 74 180 143 38 0 Aug 449 102 82 56 0 26 23 3 20 347 332 13 18 301 292 9 15 Sept 180 42 42 16 10 16 14 2 0 138 138 8 51 79 79 0 0 Oct 740 336 336 42 276 18 14 4 0 404 403 10 235 157 157 (3) 2 Nov 218 89 89 67 0 21 15 6 0 129 129 13 26 91 88 3 0 Dec 330 95 95 68 0 27 21 6 0 235 235 22 19 194 188 7 0 1940—Jan 279 91 91 59 0 32 18 14 0 189 189 26 29 133 98 36 0 Feb 451 104 104 58 1 45 43 3 0 347 347 114 22 211 196 14 0 Mar 241 70 69 34 6 29 15 15 1 171 171 49 17 106 92 14 0 Apr. 345 118 118 58 6 54 31 23 0 227 227 18 17 192 154 38 0 i Includes publicly-offered issues of Federal credit agencies, but excludes direct obligations of U. S. Treasury. 8 Includes issues of noncontiguous U. S. Territories and Possessions. 3 Less than $500,000. Source.-— For domestic issues, Commercial and Financial Chronicle; for foreign issues, U. S. Department of Commerce. Monthly figures subject to revision. Back figures —See Annual Report for 1937 (table 78). 568 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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 Publicly-offered» Total End of month g d r e o b s t s in T t o e t r a e l st Total Bonds Notes Bills 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 he ll r* t d u M e r b e a d - t Other bearing Pre- Treas- U.S. war ury> savings 1932—June 19,487 19,161 18,816 753 13,460 1,261 616 105 240 1933—June 22, 539 22,158 •21,782 753 13,417 4,548 954 92 284 315 1934—June 27,053 26, 480 •26,006 753 15, 679 6,653 1,404 118 356 54 518 1935-June 28,701 27,645 26,910 753 14,019 62 10,023 2,053 156 580 231 825 1936—June 33, 779 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 1,601 644 141 447 1939—March 39,442 35,579 79 25,218 * 1,701 7,270 1,311 827 2,257 779 125 419 April 40,063 39, 525 35,627 79 25, 218 1,751 7,270 1,309 826 2,294 780 122 416 May 40,282 39, 751 35,680 79 25, 218 1,806 7,270 1,308 825 2,442 805 117 414 June 40, 440 39,886 35, 715 79 25, 218 1,868 7,243 1,308 839 2,511 820 142 411 July 40, 661 40,114 35,798 79 25,218 1,949 7,243 1,309 833 2,542 941 140 408 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 2,796 912 109 401 November. 41, 305 40,807 36,123 79 25, 218 2,140 7,232 1,454 791 2,981 911 400 December. 41,942 41,445 36,826 79 26,881 2,209 6,203 1,455 789 3,021 809 3*8 1940—January... 42,110 41, 601 36, 957 79 26.896 2,473 6,203 1,307 787 3,049 807 114 395 February.. 42, 365 41,839 37,097 79 26.897 2,610 6,203 1,308 785 3,152 805 132 394 March 42, 540 41, 983 37,127 79 2,707 6,125 1,309 784 3,269 803 165 392 April 42, 658 42,117 37, 236 79 2,818 6,125 1,306 782 3,282 816 150 391 1 Excludes postal savings bonds, formerly sold to depositors in the Postal Savings System. 2 Includes Liberty bonds. 3 Includes adjusted service bonds of 1945 and special issues of adjusted service bonds and of notes to Government Life Insurance Fund series and of certificates to the adjusted service fund. 4 Includes special issues to Federal old-age and survivors insurance trust fund, unemployment trust fund, and railroad retirement account. 6 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—$2,108,000,000; 1934~$l,517,000,000 MATURITIES OF PUBLICLY-OFFERED DIRECT OBLIGATIONS, FULLY GUARANTEES OBLIGATIONS, BY AGENCIES > APRIL 30,1940 [In millions of dollars] [In millions of dollars] Federal Home Recon- Com- U. S. Maturing Farm Owners' struction modity Hous- JCJUQ. OI Total Mortgage Loan Finance Credit ing Bonds Month Corpora- Corpora- Corpora- Corpora- Author- Date maturing Bonds call- tion tion * tion tion ity or callable able^ Total Bills Notes U. S. 1934—June.. 681 312 134 235 Sav- Other Dec... 3,063 980 1,834 249 ings 1935—June.. 4,123 1,226 2,647 250 Dec... 4,494 1,387 2,855 252 1936—June.. 4,718 1,422 3,044 252 1940—Before July 1 1,278 905 20 353 353 Dec... 4,662 1,422 2,988 252 July 1-Sept. 30 401 401 1937—June.. 4,665 1,422 2,987 255 Oct. 1-Dec. 31 737 737 Dec... 4,645 1,410 2,937 297 1941—Jan. 1-Mar. 31 677 677 545 1938—June. _ 4,853 1,410 2,937 299 206 Apr. 1-June 30 504 504 July 1-Dec. 31 1,039 204 834 834 1938—Nov. 4,993 1,388 2,888 511 206 1942 1,001 1,001 Dec... 4,992 1,388 2,888 509 206 1943 1,595 1,050 545 1,855 1939—Jan. 4,987 1,383 2,888 509 206 1944 1,214 1,214 2,555 Feb... 5,410 1,381 2,888 819 206 114 1945 _ 2,834 718 175 1,941 1,755 Mar.. 5,410 1,381 2,888 819 206 114 1946 1,854 320 1,534 2,359 Apr... 5,410 1,380 2,888 819 206 114 1947 . 2,800 417 2,383 1,473 May.. 5,409 1,379 2,888 820 206 114 1948 1,990 504 1,487 2,246 June.. 5,450 1,379 2,928 820 206 114 1949. _ _ 1,654 836 819 2,278 July.. 5,480 1,379 2,958 820 206 114 1950 __ 1,138 3 566 571 1,186 Aug... 5,583 1,379 2,858 820 409 114 1951 1,223 1,223 3,500 Sept. . 5, 455 1,279 2,830 820 409 114 1952 _ 2,436 2,436 Oct... 5,448 1,279 2,823 820 409 114 1953 2,904 2,904 Nov... 5,707 1,269 2,817 1,096 407 114 1954.. 2,663 2,663 Dec... 5,703 1,269 2,813 1,096 407 114 1955 755 755 2,611 1940—Jan.. 5,699 1,269 2,809 1,096 407 114 1956 489 489 982 Feb._. 5,673 1,269 2,783 1,096 407 114 1958 919 Mar.. 5,663 1,269 2,770 1,096 407 114 1959 982 982 Apr.__ 5,657 1,269 2,763 1,096 407 114 1960 2,611 2,611 1,485 1961 .. .. 50 50 50 1963 919 919 1 Principal amount of obligations guaranteed as to interest and princi- 1965 1,485 1,485 pal. Excludes obligations held by U. S. Treasury and reflected in the public debt. The total includes guaranteed debentures of the Federal Total 37,236 1,306 6,125 2,818 26, 986 26,986 Housing Administrator, amounting to $6,600,000 on April 30, 1940. * Excludes obligations guaranteed as to interest only. For August 1939 1 Excludes U. S. savings bonds. Other bonds in the amount of $2,606,- and subsequent months includes matured bonds not presented for retire- 000,000 not callable prior to maturity are shown as of date of maturity. ment amounting to $32,000,000 on April 30, 1940. Bonds that have been called are shown as maturing on date of call. 2 Includes unclassified U. S. savings bonds. JUNE 1940 569 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SUMMARY OF TREASURY OPERATIONS [On basis of daily statements of United States Treasury. In millions of dollars] General and special accounts Increase or de- Receipts Expenditures i T a ru c- st crea p s e e r i d o u d ring counts, General Excess e e x t c c e ." ss of re- of re- Period Total c ta o I x n m e - s e t S s a e o i x c t c y u e ia r s - l ' l M a i r n n e n n is e t v u a e c o e l e e r u - - l s - o A th l e l r Total e I d n s e t t e b o r t n - t f i V N e a d o n n e e n a s d - t - a e - l o A th l e l r r c a R e e o l n r e i v y e d - - f f ( v u n R i o n n e e l t g d v - ) s « - T f a e t e c r r t r c u c a s t . n s s t t 5 s o ., - ( p c t + e e u ( e n i - ) r x p ) e d o - t s i s r - p ( c t + e e u ( e n i - ) r x p ) e d o - t s i s r - b G a f e l u a n n n e d c ra e l 8 G d r e o b s t s erans' Adm.8 Fiscal year ending: June 1937 5,294 2,163 253 2,181 697 8,442 866 1,436 1,994 3,073 204 868 -3,149 +374 -128 +2,646 June 1938 6,242 2,640 755 2,279 567 7,626 , 926 1,556 2,178 2,238 121 607 -1,384 +306 -338 +740 June 1939 5,668 2,189 740 2,232 507 9,210 941 1,627 2,761 3,105 92 685 -3,542 +890 +622 +3,275 10 months ending: April 1938 5,092 2,049 619 1,926 499 6,128 685 1,290 1,740 1,717 93 604 -1,035 +85 +135 +1,085 April 1939 4,659 1,789 591 1,853 426 7,514 658 1,351 2,258 2,591 77 579 -2, 856 +785 +828 +2,898 April 1940 4,741 1,621 669 1,965 486 7,868 726 1,646 2,808 2,031 50 607 -3,127 +280 -628 +2, 218 1939—April 268 40 30 155 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 613 356 25 192 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 38 119 217 46 822 18 152 254 321 11 66 -402 —44 -216 +5 September-_. 719 329 27 311 52 784 151 147 261 170 5 50 -65 +-1 -53 October 322 33 36 198 50 764 68 154 305 175 9 53 -442 -264 November.._ 407 34 130 191 52 691 12 157 282 182 5 53 -284 +252 +178 1940— D A F M J e e p a a b c n r r r e i u c u l m h a . a r b y ry er . _ - .— — _ 3 9 3 4 5 0 3 4 6 1 4 4 4 9 5 3 6 4 1 6 4 6 5 9 3 8 5 1 2 4 3 7 3 9 5 9 8 0 1 1 1 1 1 5 6 9 7 7 4 7 2 5 1 4 4 4 5 5 6 2 9 0 7 8 7 9 7 6 5 1 8 8 6 6 2 3 0 8 1 1 6 3 9 4 1 9 8 0 6 9 2 1 1 1 1 0 6 8 6 7 2 4 4 9 3 2 2 3 2 2 8 7 9 1 7 0 5 9 7 6 1 2 2 1 1 1 9 0 8 6 0 4 6 5 8 81 4 4 6 6 1 8 5 2 1 3 5 8 0 0 5 - - - - 3 3 2 4 -2 2 9 1 7 2 4 8 1 9 + + + + + - 2 1 3 3 5 1 6 6 7 6 8 1 7 + + - - 1 + 3 1 3 9 0 6 6 1 4 3 7 4 1 + + + + + + 1 2 2 1 6 1 6 6 5 3 1 7 7 9 6 7 8 5 Details of trust accounts, etc. Details of general fund balance (end of period) Period t c r r u e R O e i s e p t t l i - t d r f s e - u a m n g m d e v e I n e e a n i s t n n n - t t s d - a s u c r r c a a m B o i p n l u e e f r a c o i n n n y e t a t e t - s d - ce R i e p U - ts n t e r m m u v I s e e p n t s n l - t o t - f s u y n m d d e S W r n a t b a t w i y t t h e a s - ls s C F t R r o i u t n e r G i c N c p c o a h o o t o n n e e i v n r c o t c a - e e n k - e r i n x n m p g C m e C e o C n a t n o r r i c d o p e o t d c i m d o n t i o a u t r i - u y g t a r n e e - n t s s c i o i o n e A t f s h l e l r d ( e e c o o + x i x e A t t f ) p c u h i p e l e r r e l e s n o t e r s s - s , - r Total a g c I o t n i l - v d e m g c I o o r e n e n l n - d - t i S o e r i a g g n e - W in o g l rk- Fiscal year ending June 1937 267 267 () 294 293 1 8 329 8 112 127 +60 2,553 1,087 141 356 970 June 1938 550 461 85 763 660 191 89 8 184 8 11 +87 2,216 142 446 1,628 June 1939 639 516 120 838 395 442 8 658 136 8 246 +116 2,838 142 536 2,160 10 months ending: April 1938 530 450 68 552 428 118 81 38 8 26 +77 2,689 142 433 2,114 April 1939 504 393 98 669 300 369 8 575 141 8 255 +83 3,044 142 522 2,380 April 1940 520 398 104 768 373 402 8 245 8 35 109 +98 2,210 143 581 1,486 1939—April 55 50 10 34 8 13 41 8 60 5 8 27 +11 3,044 142 522 X380 May 50 40 11 137 108 32 3 84 12 +23 2,924 142 528 2,254 June 85 83 11 32 8 13 41 8 86 (8) (7) 82 +11 2,838 142 536 2,160 July 65 45 10 58 8 14 42 16 6 144 +13 2,447 142 544 1,761 August 66 51 10 154 129 41 29 8 86 96 +5 2,231 142 549 1,539 September.. 50 43 10 13 8 19 40 22 5 874 +10 2,178 142 554 1,481 October 53 43 10 54 7 24 15 19 4 +15 1,913 143 558 1,21a November.. 53 43 10 144 142 29 8297 27 8 19 +6 2,166 143 561 1,462 December 58 43 10 29 83 32 85 11 10 2,476 143 565 1,768 1940— A M F J e p a a b n r r i u c r l a u h r a y ry... 1 2 3 1 1 0 5 0 0 - 13 5 5 1 1 1 1 2 0 0 1 1 7 3 5 5 9 0 3 5 8 1 2 0 1 1 8 3 8 8 4 5 4 4 5 8 7 5 82 • 8 0 5 3 2 8 " 8 8 4 4 6 3 8 8 8 8 2 1 1 4 5 1 2 + + 2 7 1 2 2 2 2 , , , , 2 5 3 2 1 1 5 8 0 4 0 2 1 1 1 1 4 4 4 4 3 3 3 3 5 5 5 5 6 7 7 8 8 7 3 1 1 1 1 1 , , , , 5 6 7 4 7 9 3 8 1 4 4 6 1 Excludes debt retirements. • Includes taxes under Social Security Act and on carriers and their employees. » Excludes expenditures for adjusted service which are included under "Transfers to trust accounts, etc." 4 Includes revolving funds of Public Works Administration and Farm Credit Administration. • Includes expenditures for retirement funds, adjusted service certificate fund, old-age insurance trust fund 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. 7 Less than $500,000. 8 Excess of credits. »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. 570 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

GOVERNMENTAL CORPORATIONS AND CREDIT AGENCIES, MARCH 31, 1940 [Based on compilation by U. S. Treasury Department from reports received from organizations concerned. In millions of dollars] Recon- Home mortgage and Farm credit agencies Total struction housing agencies Ten- Finance nesi A C P W s ra t d a u o r t o n m a b r io p r t d l k i i i o n o n c s - n - O C H r L a w o o o t r i n m a p o e n o n e r - s' O m a g c g t a o i h e e g r n e s t e - r - U t S H h A n t i o o n a i r u u t t g i e e - s t s d y - m F a g c g a a o i e r e g r n m s t e - - a C b n A O F a d r a d t e n h r m c d k m e o i s r . t r- m C C r C a o r o t o e r i d m p o d i o n i t - t y - Other t V A h l s i e t e o a u y y e l r - - - a a s c I g n u i n e e c r - s n - e - Other M 1 3 9 1 a 4 , 0 r. F 1 2 9 e 8 4 b , 0 . M 1 3 9 a 1 3 , r 9 . porations Assets Loans and preferred stock: Loans to financial institutions.. 189 138 0) 67 394 405 420 Preferred stock, etc. .»* 472 203 34 75 1 786 791 858 Loans to railroads 487 30 517 509 505 Home and housing mortgage loans 2,022 216 139 2,377 2,365 2,324 Farm mortgage loans 2.568 2,568 2,580 2,694 Other agricultural loans 1 280 651 195 5 1,131 1,120 762 All other loans ._ . »46 4 (l) 3 348 *328 1,140 1,118 960 Total loans and preferred stock 1,614 2,225 388 139 2,568 355 651 543 14 67 364 8,914 8,888 8,523 Cash 25 176 69 5 84 51 2 14 50 14 504 494 511 U. 8. Govt. direct obligations 48 4 40 3 93 170 403 4 765 765 742 Obligations of Government credit agencies: Fully guaranteed by U. S 14 11 105 130 130 143 Other*... . 8 <*) 1 36 45 43 44 Accounts and other receivables 22 8 6 2 203 4 32 0) 6 64 69 417 415 333 Business property __ . . (0 3 0) 128 6 0) 8 312 1 96 555 552 468 Property neld for sale ... 41 478 104 4 1 629 644 712 Other assets. 2 1 0) <*) 8 W2 0) 6 12 126 157 148 220 Total assets other than interagency* 1,761 2,895 517 278 3,066 629 693 564 332 708 674 12,11612,07811, 696 Liabilities Bonds, notes, and debentures: Guaranteed by United States 1,096 2,77i 114 1,270 407 6 5,664 5,675 5,410 Other* _ 0) 134 *980 191 8 1 9 1,323 1,321 1,374 Other liabilities (including reserves). 129 96 40 5 107 8 186 193 7 234 60 1,065 1,057 808 Total liabilities other than inter agency6 . .- _ 1,225 2,867 174 119 2,357 199 593 193 16 241 69 8,052 8,053 7,592 Excess of assets over liabilities, ex- .iii cluding interagency transactions. 536 28 343 158 709 430 100 371 317 467 605 4,064 4,025 4,104 Privately owned interests 52 206 4 139 401 400 386 U. S. Government interests 536 28 292 158 503 426 100 371 317 328 605 3,663 3,625 3,718 1 Less than $500,000. 2 Includes $85,000,000 loans of Public Works Administration. 8 Includes $280,000,000 loans of Farm Security Administration. 4 Includes $202,000,000 loans of Kural Electrification Administration. 5 Excludes Federal land bank bonds held by Federal Farm Mortgage Corporation. • Includes, however, investments in securities of agencies (other than mentioned in footnote 5) and deposits of agencies with Reconstruction Finanoe 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] Apr. 30, Oct. 31, Nov. 30, Dec. 31, Jan. 31, Feb. 29, Mar. 31, Apr. 30, 1939 1939 1939 1939 1940 1940 1940 1940 Loans to financial institutions 193,967 175,795 173,363 172,154 166,799 162,852 159,353 155, 651 Loans on preferred stock of banks and insurance companies. 33,583 33,127 33,094 33,029 32,319 29,994 29,840 29, 749 Preferred stock, capital notes, and debentures 528,024 513,200 490,099 488,673 484,211 476,395 472,345 474, 475 Loans to railroads (including receivers).__ 443,840 436,650 444,314 448,792 454,194 458,841 467,887 471, 747 Loans for self-liquidating projects 111, 391 89,872 93,068 79,440 65,873 66,501 66,753 58, 578 Loans to industrial and commercial businesses 112, 531 126,863 130,026 130,625 130,378 131,919 130, 704 130,466 Loans to drainage, levee, and irrigation districts 83,482 83,750 83,814 83,874 83,966 83,723 Other loans _ 27,129 23,274 4,046 4,081 4,093 4,180 4,260 4,235 Securities purchased from Public Works Administration... 130, 313 126,649 127,290 120,808 117,876 117,603 114,066 112, 743 Total loans and investments, other than interagency. 1, 663, 7441,608,911 1,579,050 1,561,599 1,539,557 1, 532,1601, 529,1741, 521, 365 Preferred stock of Export-Import bank _ 45,000 45,000 45,000 45,000 45,000 74,000 74,000 74,000 Loans to Rural Electrification Administration 146,498 146,498 146,498 146,498 146,498 146,498 146,498 Capital stock of, and loans to R. F. C. Mortgage Co 55,066 55,102 56,047 57,081 58,045 58,124 59,198 59,355 Capital stock of, and loans to Fed. Natl. Mtge. Assn 29, 398 50,323 54,538 58,729 63,233 65,806 88,616 70,385 Loans to Tennessee Valley Authority 3,000 8,300 8,300 8,300 8,300 Total loans and investments 1,852,906 1,914,133 1,889,433 1,877,207 1,860,632 1,884,888 1,885, 786 1,879,903 NOTB.—For explanation of table and back figures,s ee BULLETIN for April 1936, p. 220. JUNE 1940 571 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FARM CREDIT ADMINISTRATION LOANS AND DISCOUNTS OUTSTANDING, BY INSTITUTIONS [In thousands of dollars] Farm mortgage loans Federal intermediate by- c a r n e d d i d t i b sc a o nk u n l t o s a f n o s r — to Loans to cooperatives by- End of month la F nd e d b e a ra n l ks C s o L B i m o a a n n n m e d k r is- p a c s p c R r o n r c o r o e c d u e e r d d a i g a l d a g i u t b t i i t t u r i o c t i a i o c r o n t a - n a n i o n a s o l k s r s l - n s , - , f c i i e n o n O t t x i a o s i o t c n v p t h n i e c e e t e s p i s r u r n , a t - g - ti P a o s r t n s i o o o d c c n u r i s e a c d - - it t R i u 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 s e a - - d l - c d r E g r l o o o e m p a n u a e n c g r s n y 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 B o t e n l i o a u n k v p n d t s e e r k i s f a r n , o - l g r i A M i n r n e t g g g a u v r r o r i f A k c a u l u e v l n c t l - d t - for cooperatives » 1934—December _ 1,915, 792 616,825 99,675 55, 672 60,852 87,102 111, 238 33, 969 27,851 54,863 1935—December 2,071,925 794, 726 104, 706 47,162 04,096 43,400 172, 863 2,731 50,013 44,433 1936—December 2,064,158 836,779 129,872 41,017 105, 212 25,288 165,369 1,641 69, 647 53,754 1937—December _ 2,035, 307 812, 749 165,194 40,464 138,169 15, 592 172, 701 1,813 87, 633 30,982 1938—December 1,982,224 752,851 168,392 33, 545 148,037 11,081 171,489 920 87,496 23,723 1939—April 1, 954, 677 728, 489 182, 643 36,483 177,792 10,298 179,756 1,256 61,363 23,190 May ._.. 1, 947, 944 723,187 186, 588 38,124 183, 351 10,286 180,434 60,465 23,061 June 1,940, 586 717, 622 190,359 39, 794 187, 712 10,235 180,166 59, 577 22, 592 July- _ 1, 934,013 712, 823 189,044 40, 657 187,844 10,003 179, 356 263 62,124 22,189 August 1, 928,166 708, 426 187, 968 41, 661 185, 215 9,599 178,271 127 61, 404 22,422 September- 1,922, 577 703,840 179, 674 37, 645 174,032 9,127 175, 667 778 65,160 21, 663 October _ 1, 916, 431 699, 274 169, 731 33, 996 162, 703 8,351 171,819 1,493 70,422 21, 582 November 1, 910, 336 695,101 165,368 33,417 156, 526 8,042 169,460 1,696 73,120 20,589 December 1, 904, 655 690,880 165, 236 33, 354 154,496 8,005 168, 330 1,835 76, 252 20, 547 1940—January _ 1, 900,408 687,191 161, 753 33, 620 153, 949 7,904 167,957 1,756 73, 238 20,427 February 1,896, 507 683, 694 165,106 34, 738 160,003 7,926 170,020 2,002 71, 772 20,038 March 1,890,432 677, 717 174,152 36,326 173,840 7,888 176,045 1,754 69, 311 19,763 April 1, 886, 272 673,696 185, 373 37, 921 186, 276 7,904 179, 801 1,603 67,454 18,537 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 c o l i u f o a m a t a i n s o b s n o a e s - s r soc L ia o t a io 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 » o - r an ba c l e - s1 Total b i p n t a o o n r s d y k i e - s - Total t o r i D g e b o i a c - l n - i t s - G t o t i a e g u b o n e a l a n - d - i r s - - f s e u e r t n e r c - v d .* e s, 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—December. 2,168,920 1,368 1,034,162 198,840 1939—March 1,266 1,309 80 1,153 167 76 1939—January 2,149,038 1,370 1,040, 770 178,852 April 1,264 1,306 76 1,154 166 76 February. __ 2,134, 261 1,375 1, 051,109 170, 614 May 1,261 1,305 73 1,157 1,011 146 75 March 2,117, 598 1,375 1, 067,887 161, 614 June 1,262 1,304 68 1,157 1,011 146 79 April 2,105,824 1,381 1,089, 879 157,176 July 1,268 1,310 58 1,172 1,026 146 80 May 2,091, 324 1,383 1,117, 228 157, 911 August 1,271 1,314 56 1,174 1,028 146 84 June.. 2,080, 512 1,386 1,136,289 168,962 September 1,267 1,307 55 1,182 ., 036 146 70 July 2, 067,844 1,385 1,157, 536 161, 537 October—. 1,270 1,311 54 1,182 146 75 August 2,059,792 1,392 1,186, 784 159,470 November 1,274 1,317 54 1,182 146 80 September- 2,054, 865 1,394 1, 206, 887 163, 687 December 1,279 1,319 53 1,192 ,046 146 74 October 2,049,421 1,394 1, 231, 685 168, 654 1940—January 1,290 1,331 50 1,197 ,051 146 84 November.. 2,043, 288 1,401 1, 252, 559 168,822 February- I, 297 December... 2,038,186 1,410 1, 271,161 181, 313 March , 301 1940—January 2,031,341 1,403 1, 280, 200 156, 788 April l, 303 February.... 2,026, 614 1,407 1, 296,464 144, 515 March 2,021,951 1,413 1, 317,975 137, 642 April 2,020, 572 1,420 1,348,072 133, 811 p Preliminary. 1 Outstanding principal, represented by certificates of deposit. Does not include accrued interest nor outstanding savings stamps. i Federal Home Loan Bank Board estimates for all Federal savings J Includes working cash with postmasters, 5-per cent reserve fund and and loan associations. miscellaneous working funds with the Treasurer of the United States, 1 Excludes loans to other than member institutions which are negli- accrued interest on bond investments, and accounts due from late postgible in amount. masters. Back figures.—See BULLETIN for August 1935, p. 502 572 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

PRODUCTION, EMPLOYMENT, AND TRADE [Index numbers; 1923-25 average>=100. The terms "adjusted" and "unadjusted" refer to adjustment for seasonal variation] Industrial production (physical volume) i* Construction contracts awarded (value)l Fac- Factory em- tory Freight-car Department Year Total Manufac- Minerals Total Residential All other ployment3 pay- loadings * * store sales rnlla 3 month Ad- Unad- Ad- Unad- Ad- Unad- Ad- Unad- Ad- Unad- Ad- Unad- Ad- Unad- Unad- Ad- Unad- Ad- Unadjusted justed justedjusted justed justedjustedjusted justedjustedjustedjustedjustedjusted justedjustecjusted 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 87 142 106 110 107 111 1930. ... 96 95 99 92 50 125 92 89 92 102 1931 81 80 84 63 37 84 78 68 74 92 1932 . . 64 63 71 28 13 40 66 47 55 69 1933 76 75 82 25 11 37 73 50 58 67 1934 . . 79 78 86 32 12 48 86 65 62 75 1935 90 90 91 37 21 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 1U39 105 105 108 72 60 81 97 91 70 90 1937 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 81 79 76 75 108 104 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 93 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 62 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 98 110 103 96 77 57 48 128 100 94 94 87 69 64 89 156 1939 Jan. r102 100 100 99 110 105 86 70 55 45 111 90 95 92 84 69 63 88 69 Feb 99 99 97 99 110 105 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 '94 '87 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 r105 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 98 100 94 77 85 91 97 Oct 121 124 121 123 121 132 76 72 68 66 82 77 101 104 102 80 89 90 99 Nov.... 124 124 124 123 124 127 83 74 61 59 101 87 103 104 102 82 83 95 106 Dec 128 120 '130 121 120 113 86 69 60 51 107 84 105 104 104 78 73 96 168 1940 Jan 119 117 118 116 125 120 75 61 53 44 93 75 104 101 98 78 72 92 71 Feb 109 110 108 ••no 120 115 63 54 56 50 68 58 102 101 98 73 68 89 71 Mar.... 104 106 101 105 121 112 62 63 57 60 66 65 100 101 98 69 67 89 86 April. _. P102 P104 *99 P103 P122 P110 P63 P73 P63 P74 P64 P72 ?99 P100 P96 70 67 89 86 v Preliminary. r Revised. * Average per working day. 1 For indexes of groups and separate industries see pp. 574-575; for description see BULLETIN for February and March, 1927. » 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 19£8, pp. 835- 837, and for October 1939, p. 878. For current indexes of groups and separate industries see pp. 576-579. Underlying figures are for payroll period ending nearest middle of month. * For indexes of groups see p. 581. 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. JUNE 1940 573 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDUSTRIAL PRODUCTION, BY INDUSTRIES (Adjusted for Seasonal Variation) [Index numbers of the Board of Governors. 1923-25 average=100] 1939 1940 Industry Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. Manufactures—Total 96 92 91 97 100 '105 Ill 121 124 '130 118 108 101 Durable8 _ 80 76 71 82 '89 '93 103 123 130 141 '123 '104 94 J>90 Nondurable 110 106 108 110 110 115 '118 119 118 120 114 111 107 P106 Iron and Steel2 83 '80 73 89 '101 '106 '122 '158 '168 '174 '144 '112 '97 92 Pig iron _ 75 66 55 73 81 91 101 119 125 126 119 102 91 90 Steel ingots2 84 '81 75 '91 '103 107 '124 '162 '172 '179 '146 '113 97 92 Transportation Equipment: Automobiles 91 87 73 81 87 89 85 78 90 127 128 127 110 105 Locomotives 14 14 15 15 15 19 23 24 20 18 19 21 Nonferrous Metals: Tin deliveries * 76 92 102 93 87 99 97 95 119 165 181 140 136 147 Zinc 90 91 89 90 91 93 98 110 117 121 114 116 115 115 Lead 69 71 82 70 68 71 71 70 83 78 87 78 82 60 Cement and Glass: Cement __ _ 90 81 76 79 82 76 78 87 91 96 80 71 87 84 Glass, plate 130 83 89 124 87 121 165 222 191 232 200 165 164 136 Coke: Byproduct __ 106 94 77 103 110 120 130 143 147 148 148 132 127 129 Beehive 5 2 2 5 5 6 7 23 29 26 17 11 10 8 Textiles „ 110 97 104 111 111 120 121 125 126 123 114 108 98 95 114 105 110 115 117 128 129 129 135 145 130 125 117 113 Wool 105 85 105 116 114 123 118 125 128 116 108 99 81 76 C onsumption 119 91 120 138 136 150 138 138 140 124 114 103 89 80 Machinery activity1 ___ . 91 80 98 105 105 103 103 120 129 120 109 99 70 69 Carpet and rug loom activity»_ 84 78 73 70 64 79 84 94 92 85 86 86 78 78 Silk deliveries 108 88 76 84 84 87 107 120 96 72 74 63 66 64 Leather and Products 122 116 115 110 115 118 105 109 115 121 120 116 '106 P101 Tanning 95 96 93 91 88 98 87 93 98 95 99 93 83 Cattle hide leathers 93 91 91 88 89 106 93 98 103 102 98 '96 86 Calf and kip leathers 103 101 89 91 69 73 71 73 83 85 94 81 71 Goat and kid leathers 94 105 103 102 106 102 87 103 99 87 107 '95 90 Boots and shoes _- 140 128 128 121 133 131 117 119 126 138 133 132 120 113 Food Products: Slaughtering and meat packing 89 90 94 87 89 92 100 99 100 99 100 100 99 103 Hogs . 73 81 84 73 77 84 95 99 100 99 95 95 94 96 Cattle 106 99 104 103 102 100 102 95 94 95 102 105 103 109 Calves 110 106 108 104 107 104 111 110 110 100 108 102 105 106 Sheep 156 135 142 143 145 139 146 144 154 147 158 145 139 144 Wheat flour 97 100 95 100 96 88 103 91 82 91 90 92 94 95 Sugar meltings 78 94 72 66 81 77 96 91 85 128 105 79 74 75 Tobacco Products 164 164 170 170 158 168 164 166 172 186 167 170 160 181 Cigars 78 77 75 75 73 76 76 75 74 79 83 77 75 76 Cigarettes - 236 236 246 247 227 241 235 240 250 273 239 247 229 267 Manufactured tobacco 80 81 85 84 80 89 85 83 87 89 74 79 79 85 Paper and Printing: Newsprint production 62 63 66 63 63 63 65 63 64 65 64 68 69 68 126 130 127 132 126 130 142 137 131 140 129 132 136 133 Petroleum Refining 202 209 211 215 212 218 221 232 228 221 214 217 217 Gasoline * 256 265 269 276 273 280 284 296 293 280 265 268 268 Kerosene __„ 122 122 124 122 117 123 118 118 109 108 106 125 136 Fuel oil» 140 143 143 144 139 140 148 155 150 150 162 159 157 Lubricating oil * __ 111 115 119 121 115 128 123 149 141 145 138 139 139 Rubber Tires and Tubes1 113 106 103 114 113 122 125 125 118 110 115 118 118 118 Tires, pneumatic1 - 118 111 108 120 118 127 130 130 122 115 120 123 124 123 Inner tubes1 . _ _ _ 77 73 67 76 74 81 85 89 84 72 76 78 80 82 Minerals—Total 110 '94 98 104 106 91 114 121 124 120 125 120 121 P122 Bituminous coal 77 '28 46 71 75 77 84 94 91 83 91 87 79 P92 Anthracite 61 80 73 59 53 53 71 58 60 59 75 51 66 I P r e o t n ro o l r e e um, crude 173 174 1 5 7 5 5 1 6 7 7 0 1 7 7 4 4 1 7 2 8 7 17 9 4 7 1 1 8 2 1 8 1 1 8 5 7 5 189 X189 190 194 ?190 Zinc 90 91 89 90 91 93 98 110 117 121 114 116 115 115 Lead 69 71 82 70 68 71 71 70 83 78 87 78 82 60 Silver 86 101 71 107 70 79 104 91 91 105 89 103 98 1 Without seasonal adjustment. v Preliminary. ' Revised. 2 Revised figures 1939: durable, Jan., 89; iron and steel, Jan., 94; steel ingots, Jan., 96, Feb. 90. 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. 574 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDUSTRIAL PRODUCTION, BY INDUSTRIES (Without Seasonal Adjustment) [Index numbers of the Board of Governors. 1923-25 averages 100] 1939 1940 Industry Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. Manufactures—TotalI 100 96 94 97 95 99 110 '123 123 121 116 '110 105 *103 Durable '87 84 78 85 '84 '86 '100 123 '126 120 117 104 102 Nondurable _ 111 106 107 108 106 111 119 122 122 114 116 114 108 *>106 Iron and Steel - '88 79 89 '94 '104 '121 '153 155 '153 138 '117 '109 102 Pig iron 70 70 56 72 77 87 98 119 126 124 118 104 96 95 Steel ingots1 . 05 '90 '82 '91 '96 105 '123 '157 158 '156 140 '118 '110 102 Transportation Equipment: Automobiles 105 106 88 91 66 28 50 93 108 142 128 127 128 128 "LOCOTTI otf vflf 14 13 16 14 15 20 24 24 22 19 17 21 Nonferrous Metals: Tin deliveries 76 02 102 03 87 00 07 95 110 165 181 140 136 147 Zinc 06 04 00 87 84 87 03 106 117 123 121 124 122 120 Lead 70 70 80 71 66 68 67 72 86 79 88 81 83 60 Cement and Glass: Cement __ 66 79 88 08 100 08 08 00 90 75 49 43 63 82 Glass, plate 137 01 03 112 78 121 165 222 191 232 200 165 172. 149 Coke: Byproduct 100 05 76 101 107 116 128 143 150 150 149 136 131 130 Beehive 6 2 2 5 4 4 7 22 30 29 20 14 12 9 Textiles 112 100 104 105 103 112 121 120 131 117 119 114 101 98 Cotton consumption 110 113 114 111 106 115 125 133 140 133 137 134 122 121 Wool 106 84 100 100 106 118 122 132 135 116 110 104 82 75 122 88 111 124 121 130 145 151 163 125 118 112 91 77 Machinery activity 01 80 08 105 105 103 103 120 129 120 109 99 70 69 Carpet and rug loom activity 84 78 73 70 64 70 84 04 92 85 86 86 78 78 Silk deliveries 104 87 75 75 80 01 113 120 08 64 84 67 63 64 Leather and Products ._ __ ._ 126 113 106 105 114 131 121 120 110 103 111 118 109 Tanning 04 04 88 90 88 100 92 99 96 92 95 96 83 Cattle hide leathers 04 01 87 86 86 104 97 101 102 99 99 103 87 Calf and kiD leathers 01 01 85 88 81 88 82 87 79 73 78 74 63 Goat and kid leathers 96 104 06 102 98 100 01 107 97 94 102 99 91 "Roots find stines 147 126 117 115 130 151 140 133 120 109 121 133 126 111 Food Products: Slaughtering and meat packing... 84 81 02 86 84 80 91 97 111 118 119 102 94 92 Hogs - 74 72 81 76 60 64 71 84 110 129 127 106 94 86 Cattle 02 87 101 06 101 08 114 111 108 100 103 92 89 96 Calves 111 114 122 108 104 06 107 116 112 95 100 94 106 115 Sheep 142 127 130 140 145 140 170 158 152 144 160 136 126 135 Wheat flour 01 01 00 88 94 04 122 102 89 87 89 89 88 86 Sugar meltings 02 100 81 78 08 86 102 87 66 73 69 77 87 87 Tobacco Products 156 151 172 186 171 180 181 179 175 151 158 155 152 166 Cigars.—.. . .. 71 72 78 81 76 80 87 92 88 59 64 66 68 71 Cigarettes 224 215 248 272 249 261 259 252 247 224 234 225 218 243 Manufactured tobacco 81 78 85 86 80 01 93 86 85 73 75 80 80 81 Paper and Printing: Newsprint production 61 64 66 64 62 61 64 63 63 65 65 68 68 69 Newsprint consumption 131 130 131 131 112 116 139 146 140 144 124 131 142 143 Petroleum Refining 201 208 211 215 211 217 221 233 229 222 214 217 217 Gasoline 256 265 260 276 273 280 284 296 293 280 265 268 268 Kerosene 110 121 110 113 108 116 121 124 117 117 108 128 132 Fuel oil 140 143 143 144 139 140 148 155 150 150 162 159 157 Lubricating oil 111 115 110 121 115 128 123 149 141 145 138 139 139 Rubber Tires and Tubes 113 106 103 114 113 122 125 125 118 110 115 118 118 118 Tires, pneumatic _ _ 118 111 108 120 118 127 130 130 122 115 120 123 124 123 Inner tubes 77 73 67 76 74 81 '85 '89 84 72 76 78 80 82 Minerals—Total 102 '87 97 105 107 06 123 132 127 113 120 115 112 PIIO Bituminous coal 77 '23 40 63 68 90 104 102 88 101 92 79 P77 Anthracite 50 83 73 51 44 53 72 74 62 58 81 54 55 P56 Petroleum, crude . _ _ _ - __ 171 174 177 173 178 120 179 183 185 184 181 186 192 P190 Iron ore 82 132 150 150 187 218 130 Zinc 96 04 90 87 84 87 93 106 117 123 121 124 122 120 Lead . 70 70 80 71 65 68 67 72 86 79 88 81 83 60 8ilver 94 102 69 105 59 78 98 90 98 106 90 111 106 p Preliminary. ' Revised. i Revised figures, Feb. 1939: manufactures, 99; steel ingots, 94. NOTE.—Descriptive material an d 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. JUNE 1940 575 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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] 1939 1940 Industry and group Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. Total 94.0 93.8 93.3 94.3 95.3 95.9 97.5 101.2 103.4 104.5 103.9 102.1 100.4 99.4 Durable goods 83.7 83.9 82.9 83.9 84.7 85.3 88.9 94.6 97.3 100.0 99.7 97.4 95.9 95.0 Nondurable soods 103.8 103.3 103.3 104.2 105.3 105.9 105.7 107.6 109.2 108.9 ••107.9 106.6 104.8 103.7 Iron Steel Products 90.7 90.5 89.6 90.3 90.6 92.5 96.4 105.9 110.8 112.1 110.4 107.0 102.7 100.8 Blast furnaces steel works 94 95 94 96 96 97 101 115 122 124 122 117 110 107 Bolts nuts washers rivets 97 94 93 93 94 98 102 113 118 120 117 113 112 108 Cast-iron pipe 73 73 73 71 72 73 74 77 79 79 75 78 76 75 Cutlprv edfife tools 90 90 86 91 91 94 97 102 107 109 107 103 101 102 Fortrincs 54 55 55 54 56 56 59 66 70 72 72 71 67 67 Hardware 87 84 80 72 70 78 95 99 106 106 104 101 98 97 Plumbers' supplies 74 74 75 76 77 78 80 81 83 85 83 81 81 82 Stamped, enameled ware 147 144 142 147 147 157 159 162 166 166 160 161 158 155 Steam hot-water heating 75 75 74 75 78 79 80 84 86 87 86 85 85 85 Stoves 85 84 85 86 89 88 86 90 91 93 93 91 91 89 Structural ornamental 67 67 67 66 67 69 71 75 76 76 75 75 72 71 Tin cans, tinware 95 96 95 95 95 98 97 103 103 100 101 100 98 98 Tools 84 84 84 84 81 85 87 91 94 96 96 96 93 93 Wirework 151 148 142 135 128 121 149 164 171 176 172 162 161 158 Machinery 94.8 94.9 94.4 95.4 96.1 97.3 99.8 105.7 110.6 112.9 113.4 113.6 113.3 113.4 Agricultural implements 124 122 119 118 115 121 123 125 128 131 133 137 136 133 Cash registers etc 131 127 126 128 127 125 127 126 127 129 127 128 128 128 Electrical machinery 86 87 86 87 87 88 92 97 100 103 103 102 102 102 Engines, turbines, etc. 91 91 93 95 95 97 99 108 • 116 124 133 134 132 133 Foundry, machine-shop products. 82 82 81 83 83 85 86 91 95 97 98 98 97 97 Machine tools 134 138 140 144 149 146 155 170 183 191 197 204 209 215 Radios phonographs 130 124 121 122 131 126 129 145 160 153 »144 ••144 145 153 Textile machinery 72 73 75 75 77 78 78 81 85 86 86 85 85 84 Typewriters 129 129 126 126 122 119 122 123 125 125 123 119 115 114 Transportation Eouij)7fient 91.2 91.1 87.2 88.9 90.0 88.3 99.5 105.6 101.3 112.6 113.1 '110. 8 111.1 109.7 Aircraft 968 1,075 1,169 1,267 1,385 1,414 1,512 1,605 1,767 1,905 2,050 2,062 2,075 2101 Automobiles 97 96 89 89 90 88 102 108 100 112 111 107 107 106 Cars, electric-, steam-railroad 36 34 34 33 32 31 34 42 48 53 57 61 60 54 Locomotives 16 18 21 25 28 29 28 25 26 28 30 30 28 27 Shipbuilding 111 112 118 127 128 125 128 132 133 139 140 146 148 149 Nonferrous Metals, Products 93.4 93.2 92.8 92.8 94.6 96.2 99.2 107.0 110.1 111.3 111.7 107.5 106.6 105.9 Aluminum 140 143 142 145 153 157 152 166 172 170 173 170 168 170 Brass, bronze, copper 104 103 104 105 106 109 115 130 137 138 137 128 127 124 Clocks watches 84 85 84 82 84 85 85 87 88 89 92 91 91 90 Jewelry 92 93 . 90 91 94 95 91 92 95 96 95 93 95 96 Lighting equipment 80 77 76 73 75 77 88 95 89 95 95 88 84 86 Silverware, plated ware 69 68 68 68 70 70 71 70 72 74 74 71 70 70 Smelting, refining 77 78 77 77 76 75 77 83 85 86 87 87 87 86 Lumber, Products 63.2 64.2 64.8 65.3 66.0 66.4 67.4 69.4 72.2 72.4 72.0 70.0 68.1 67.1 Furniture 85 85 84 85 86 86 87 89 93 93 94 91 90 90 Lumber, millworic 56 57 56 59 59 60 61 63 64 64 65 63 62 61 Lnmhfir, sawmills 56 57 59 69 60 60 61 63 66 66 65 63 61 59 Stone, Clay, Glass Products 77.4 77.9 75.4 77.5 78.4 78.1 79.0 81.9 85.0 85.4 85.8 80.8 80.0 80.3 Brick, tile, terra cotta 58 58 55 57 58 57 59 61 64 65 66 61 59 59 Cement 66 67 63 66 67 67 66 68 70 71 68 66 65 68 Glass 95 97 96 98 98 99 100 106 109 109 111 103 105 104 Marble, granite, slate 53 53 52 50 51 50 48 49 49 50 46 48 45 46 Pottery 85 84 84 87 88 87 86 90 93 94 95 93 90 90 Textiles, Products 100 9 99 4 99 6 101 0 103 9 104 6 103.4 106 0 107 5 105 8 104 4 »102. 7 99.1 97.6 Fabrics... 91.0 90.1 90.9 91.9 94.3 95.2 93.9 97.7 99.7 96 9 95.0 93.1 88.6 89.0 Carpets, rugs 77 77 74 73 74 76 78 83 85 84 85 83 78 79 Cotton goods 85 85 85 86 80 91 91 94 96 95 94 93 89 89 Cotton small wares 80 78 80 79 83 84 86 91 92 91 88 83 77 76 Dyeing, finishing textiles 122 121 124 120 128 129 129 133 132 131 127 124 123 121 Hats, fur-felt 87 86 84 89 93 90 87 86 90 92 91 90 84 65 Hosiery. 154 154 153 152 154 155 149 151 151 146 145 145 139 140 Knitted outerwear 70 . 67 68 72 75 80 75 76 75 68 62 68 65 59 Knitted underwear 70 70 73 74 77 79 78 79 80 79 80 77 77 74 Knitted cloth 134 133 128 138 138 140 140 148 155 146 142 134 132 128 Silk, rayon goods. 75 75 76 73 72 72 70 75 77 74 71 66 65 65 Woolen, worsted goods 81 77 81 86 89 85 83 90 95 89 85 81 71 70 Wearing apparel 119.2 116.4 115.2 117.5 121.1 121.4 120.4 120.4 120.4 121.6 121.3 '120.1 118.8 112.8 Clothing, men's 104 103 102 104 107 107 106 107 108 112 110 107. 107 100 Clothing, women's 171 165 161 169 174 174 172 171 171 171 167 170 167 157 Corsets, allied garments 107 109 111 114 115 117 116 117 117 117 117 114 112 111 Men's furnishings.. 132 128 125 129 135 140 136 138 127 122 120 120 120 115 Millinery 84 81 80 74 73 77. 80 80 74 75 79 83 83 78 Shirts, collars 121 119 120 120 123 121 121 121 123 123 132 125 122 122 *• Revised. 576 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Factory Employment (Adjusted)—Continued [Index numbers of the Board of Governors; adjusted to Census of Manufactures through 1937. 1923-25 average=100] 1939 1940 Industry and group Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. Leather, Manufactures 99.2 97.7 93 7 97.1 98.7 97.4 96.8 97.4 99.1 96.9 97.3 95.4 93.8 92.4 Boots, shoes 98 97 92 96 98 96 95 96 98 96 96 94 93 91 Leather 86 85 84 86 87 87 87 88 88 86 87 85 83 83 Food, Products 127 3 127.0 128.4 129 4 127 9 129.7 128.1 126 9 129.6 131.4 '130. 7 130.7 130.2 128.7 Baking. _ _ 144 144 146 * 147 147 146 146 146 145 145 144 144 145 144 Beverages 270 270 272 275 269 269 269 271 279 285 280 278 275 273 Butter . 94 95 96 95 95 96 95 95 97 97 '95 96 96 96 Canning, preserving 158 157 159 162 150 160 147 137 150 154 149 154 151 150 C o nf ectionery 82 81 81 80 82 86 82 82 86 86 85 86 83 82 Flour 78 77 80 81 81 79 82 80 77 79 80 80 80 79 Ice cream 78 78 77 77 75 75 76 78 79 79 '79 79 80 79 Slaughtering, meat packing 96 96 98 100 101 101 102 103 106 108 108 109 110 107 Sugar, beet 107 103 107 104 99 105 131 107 105 118 '162 '102 102 98 Sugar refining, cane . 96 102 87 89 94 96 90 100 95 98 94 93 97 94 Tobacco Manufactures 61.4 64.5 65.1 65.5 65 7 65.2 64.4 63 5 63.1 64.7 64.2 62.7 64.3 65.0 Tobacco, snuff 62 63 62 62 61 62 62 62 60 60 62 60 60 59 Cigars, cigarettes 62 65 65 66 66 66 65 64 63 65 65 63 65 66 Paper, Printing 111.4 111.5 111 5 111 1 111 8 112.0 112 8 115 0 115.7 116.4 115 5 114.7 114.8 114.3 Boxes, paper. . 112 111 111 111 113 115 116 121 122 121 121 118 116 115 Paper, pulp 106 106 107 106 106 107 109 114 115 115 114 113 113 112 Book, job printing 100 100 99 99 101 99 98 99 100 101 102 100 100 101 Newspaper, periodical printing.__ 114 114 115 114 114 115 116 116 115 116 114 116 117 116 Chemicals, Petroleum, and Coal Products 113 4 114 2 114 4 113 1 113 7 111 9 116 4 119 9 121.3 121.9 121 4 '120. 5 119.9 121.0 Petroleum refining.. 119 118 119 120 121 122 122 122 123 122 122 122 123 122 Other than petroleum 112.2 113.3 113.4 111.4 111.9 109.4 115.2 119.4 120.8 121.8 121.3 '120. 2 119.3 120.8 Chemicals . 120 118 117 117 115 119 122 132 137 138 138 '138 137 136 Cottonseed oil, cake, meal 96 103 110 88 85 81 92 98 91 91 92 85 82 94 Druggists' preparations _. 108 109 111 112 114 112 112 113 114 116 119 118 117 119 Explosives 86 86 87 90 92 93 98 102 104 106 104 108 109 116 Fertilizers 98 110 115 107 105 103 111 109 106 111 105 99 102 109 Paints, varnishes 120 121 119 120 122 125 123 125 126 126 127 124 124 122 Rayon, allied products . _ 299 309 302 295 298 254 297 309 310 311 310 309 304 312 Soap 79 78 79 80 84 87 87 87 86 87 86 84 81 81 Rubber Products _ 82.2 81.3 81.1 80.8 79.7 83.6 86.1 91.2 93.0 92.4 90.2 87.9 86.7 83.7 Rubber boots, shoes _ 60 60 61 59 47 58 58 60 61 61 59 57 56 57 Rubber tires, inner tubes _. 67 67 67 66 67 68 70 74 75 75 74 73 72 70 Rubber'goods, other 134 131 129 131 134 138 144 154 159 157 152 145 142 136 r Revised. NOTE.—Figures for April 1940 are preliminary. For description and back data see the BULLETIN for October 1938, pages 835-866* and for October 1939, pages 878-887. Underlying figures are for payroll period ending nearest middle of month. JUNE 1940 577 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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 1939 1940 1939 1940 Mar. Apr. Dec. Jan. Feb. Mar. Apr. Mar. Apr. Dec. Jan. Feb. Mar. Apr. Total 94.3 94.1 104.1 101.4 101.4 100.8 99.9 87.6 85.5 103.7 98.3 ••97.8 98.2 96.4 Durable goods 84.1 84.8 100.0 97.4 96.5 96.4 96.0 79.4 79.5 104.6 98.2 ••96.7 97.5 97.2 Nondurable goods 104.0 103.0 108.0 105.3 106.0 105.0 103.5 96.7 92.2 102.8 98.4 99.0 95.6 Iron, Steel, Products . 91.3 91.3 111.4 108.3 106.7 103.4 101.7 83.6 82.0 115.3 106.3 100.9 96.4 94.9 Blast furnaces, steel works 96 96 123 121 117 112 108 87 85 129 119 110 102 99 Bolts, nuts, washers, rivets.. ... 97 95 120 117 114 112 109 102 91 142 124 126 117 114 Cast-iron pipe 72 73 78 74 76 75 75 . 59 62 72 65 68 60 62 Cutlery, edge tools. 92 92 109 105 104 103 104 81 79 102 93 91 91 94 Forgings 54 55 73 72 72 68 67 56 57 88 86 84 77 75 Hardware 87 85 106 104 101 99 98 85 79 117 109 101 105 104 Plumbers'supplies 75 74 84 82 82 82 82 63 64 78 71 71 71 72 Stamped, enameled ware 150 148 166 158 161 161 160 153 147 174 160 162 164 163 Steam, hot-water heating 75 75 86 83 84 85 85 60 60 80 74 76 75 76 Stoves 83 86 89 78 86 90 91 73 76 79 65 75 80 82 Structural, ornamental- 66 66 75 73 72 70 70 56 58 67 63 ••60 60 61 Tin cans, tinware 90 93 95 94 93 93 94 94 95 100 97 93 98 100 Tools 85 84 97 96 96 95 94 82 80 102 98 96 93 91 Wirework. . 153 151 176 172 162 163 161 154 148 204 189 175 180 175 Machinery 94.6 95.0 113.1 112.4 113.1 113.1 113.6 93.4 92.8 122.1 119.1 119.3 121.4 121.4 Agricultural implements 131 129 131 135 141 144 141 146 145 152 156 164 168 166 Cash registers, etc. 131 128 128 126 128 128 129 121 121 132 129 131 134 134 Electrical machinery . 86 87 103 102 102 102 102 90 89 114 112 112 114 113 Engines, turbines, etc. 93 96 120 125 133 135 140 109 112 157 162 172 173 181 Foundry, machine-shop products. 82 82 97 97 98 97 97 74 74 99 95 94 96 95 Machine tools 136 139 192 197 205 211 216 146 152 256 259 271 282 285 Radio, phonographs 109 105 162 136 126 122 128 93 89 149 122 113 110 116 Textile machinery 72 74 86 86 86 86 85 68 69 86 84 81 82 80 Typewriters 129 129 127 123 118 115 114 134 132 122 111 110 111 112 Transportation Equipment 96.5 96.1 116.5 115 5 114 8 117.0 115 3 91.7 94.2 124.1 118.3 118.6 124.4 123.0 Aircraft 978 1,096 1,886 2,030 2,042 2,096 2,143 980 1,054 1,778 1,901 1,884 2,011 2,060 Automobiles 104 102 118 116 113 114 112 97 100 128 120 119 123 121 Cars, electric-, steam-railroad 36 36 52 53 59 61 57 31 30 47 47 54 58 52 Locomotives 16 18 28 28 29 28 28 14 16 28 27 27 26 26 Shipbuilding.. . 112 116 139 138 143 151 154 119 121 152 148 150 169 173 Nonferrous Metals, Products 93.8 92.9 112.9 109 8 107.1 107.1 105 5 86.2 83.2 116.5 108.7 103.4 104.8 102.9 Aluminum 143 144 170 170 171 171 172 156 156 197 193 195 196 199 Brass, bronze, copper 105 104 138 136 128 129 126 103 100 159 150 136 137 132 Clocks, watches 84 84 93 91 91 91 90 82 81 97 93 95 95 91 Jewelry „ 89 87 99 89 91 92 90 73 68 87 73 69 75 72 Lighting equipment._ 82 78 98 93 88 86 86 64 57 85 74 71 74 75 Silverware, plated ware 69 69 77 72 71 70 70 64 58 76 61 59 60 63 Smelting, refining 77 78 87 87 87 87 86 72 72 88 87 86 85 84 Lumber, Products _ _ 62.1 63.9 71.1 67.3 66.7 66.8 66 7 53.6 55.4 65.2 58.8 ••60.0 61.0 61.0 Furniture _ 83 82 95 90 89 89 87 70 67 86 75 •77 78 75 Lumber, millwork . 56 57 64 62 61 61 61 43 43 52 47 47 47 47 Lumber, sawmills _. 55 58 63 60 59 60 60 46 50 55 51 52 53 55 Stone, Clay, Glass Products 75.1 78.5 83.6 77.7 75.5 77.7 80.9 65.5 66.4 76.4 66.9 65.3 68.3 72.6 Brick, tile, terra cotta.__ 53 58 63 57 53 54 59 40 43 52 43 40 42 46 Cement 61 67 66 58 55 59 68 54 61 63 51 48 54 64 Glass 96 98 109 106 103 106 105 100 94 119 113 108 113 114 Marble, granite, slate 51 53 49 39 43 43 46 37 42 35 24 29 30 35 Pottery 87 88 95 92 93 93 93 81 79 90 81 84 85 85 Textiles, Products 104.8 101 8 105 6 103 5 105 5 102 9 99 9 91.3 81 9 91.6 87.5 91.3 89.4 82.0 Fabrics 93.1 90.6 98.5 95 9 95 5 90.6 89 6 80.5 75.0 89.5 84.8 84.2 78.4 75.7 Carpets, rugs 79 78 84 82 82 80 80 67 63 76 72 71 67 68 Cotton goods 88 87 97 96 96 92 91 76 73 92 89 87 83 81 Cotton small wares 84 82 91 88 85 81 79 80 73 87 81 75 76 73 Dyeing, finishing textiles 127 126 133 130 130 128 125 111 106 116 110 109 109 105 Hats, fur-felt. - 89 87 91 91 92 87 66 70 55 89 85 84 69 39 Hosiery 156 155 148 144 145 140 141 170 158 159 146 151 145 145 Knitted outerwear 71 67 65 59 68 65 59 56 52 50 47 57 53 47 Knitted underwear _ 72 73 79 75 77 79 77 64 64 72 66 69 72 68 Knitted cloth 136 133 144 137 134 134 128 108 101 116 112 107 107 98 Silk, rayon goods 77 74 75 73 r69 66 64 59 54 61 57 54 52 50 Woolen, worsted goods 81 73 91 87 85 71 67 66 56 78 73 72 57 53 Wearing apparel 127.0 122.8 116.9 116.1 123. 7 126.5 119.0 106.8 90.5 90.2 87.5 99.7 105.6 89.1 Clothing, men's 109 106 105 106 110 112 104 89 77 80 80 86 88 72 Clothing, women's. 186 178 165 162 176 181 170 147 121 117 113 134 141 120 Corsets, allied garments 110 112 116 115 116 116 115 117 119 119 112 118 119 119 Men's furnishings 136 132 129 112 121 125 118 120 108 126 95 ••113 116 100 Millinery.. __ 98 91 66 79 90 97 87 100 71 47 59 77 103 74 Shirts, collars 125 122 123 120 125 126 125 104 100 111 98 108 113 111 ••Revised. 578 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Factory Employment and Payrolls—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 1939 1940 1939 1940 Mar. Apr. Dec. Jan. Feb. Mar. Apr. Mar. Apr. Dec. Jan. Feb. Mar. Apr. Leather, Manufactures 103.9 100.2 93.2 97.4 99.3 98.2 94.7 89.4 79.8 75.4 82.3 82.6 80.3 71.0 Boots, shoes- 104 100 91 96 98 98 94 88 77 70 79 80 78 67 Leather 87 86 87 87 87 84 83 85 81 87 86 83 80 79 Food, Products 115.4 117.6 126.0 119.5 '118.7 118.7 119 6 111.8 112.1 124.4 '117 0 '115.5 117.2 117.7 Baking 143 143 145 141 142 143 142 131 129 134 131 132 134 134 Beverages __. . . 256 265 261 255 254 261 268 283 303 299 279 284 300 311 Butter 89 92 93 89 89 90 94 75 77 78 75 76 78 80 Canning, preserving 92 108 101 91 91 87 103 80 88 89 81 78 76 83 C onfectionery 81 76 96 83 84 82 77 76 68 100 '80 81 77 74 Flour . 78 76 79 79 79 80 78 72 70 72 73 74 76 74 Ice cream 68 74 68 66 67 70 75 58 62 57 56 57 60 63 Slaughtering, meat packing 94 93 112 112 109 107 103 98 97 122 119 111 112 109 Sugar, beet,. . 42 46 192 '70 '38 40 44 47 49 174 63 '44 45 48 Sugar refining, cane 95 102 95 90 92 96 94 89 88 76 71 77 79 77 Tobacco Manufactures 60.9 63.1 65.8 59.0 61.7 63.6 63.8 53.3 55.0 62.3 52.9 54.0 58.0 58.7 Tobacco, snuff 62 62 61 '63 62 61 59 66 64 67 68 '69 67 65 Cigars, cigarettes 61 63 66 58 62 64 64 52 54 62 51 52 57 58 Paper, Printing 111.1 111.1 118.5 115.1 114.6 114.4 113.9 105.4 104.5 116.8 110.0 108.6 110.0 109.7 Boxes, paper 111 109 125 117 115 114 113 119 116 137 122 119 122 121 Paper, pulp 106 106 115 114 113 113 112 106 105 123 118 117 115 115 Book, job printing 99 99 104 103 101 100 100 87 85 94 92 87 88 88 Newspaper, periodical printing... 114 115 119 114 115 117 117 107 108 115 106 108 111 111 Chemicals, Petroleum, and Coal Products.. 116.0 116.6 122.3 121.0 '120.9 122.6 123 2 120.6 119.5 133.4 131.0 '131.4 132.5 133.5 Petroleum refining 117 117 122 122 121 121 121 132 129 138 134 134 136 137 Other than petroleum 115.7 116.4 122.3 120.9 '120.9 122.9 123 7 117.3 116.7 132.0 130.3 '130.4 131.5 132.4 Chemicals 119 117 138 136 '136 136 135 133 130 162 160 '160 159 160 Cottonseed oil, cake, meal 101 85 115 103 95 87 77 82 67 110 99 89 80 70 Druggists' preparations. 109 109 119 119 119 119 119 119 119 132 129 130 131 131 Explosives 85 84 108 104 106 108 114 96 94 129 121 128 129 133 Fertilizers 146 177 102 105 109 152 175 104 136 82 83 84 113 136 Paints, varnishes 120 123 124 124 123 124 124 123 126 131 129 '128 131 132 Rayon, allied products . 304 302 312 314 313 309 306 287 279 314 320 321 316 311 Soap. 81 79 85 84 84 83 82 96 95 102 100 100 100 99 Rubber Products 82.8 82.1 93.0 90.0 88.0 87.3 84.5 83.2 81.0 100.5 94.1 '88.3 88.4 85.8 Rubber boots, shoes 60 59 63 59 57 56 56 57 57 66 56 53 56 54 Rubber tires, inner tubes 67 67 75 74 73 72 70 74 72 90 86 '81 79 78 Rubber goods, other 136 134 157 150 145 144 139 128 124 155 145 135 138 132 ' Revised. NOTE.—Figures for April 1940 are preliminary. Back data may be obtained from the Bureau of Labor Statistics. Underlying figures are for payroll period ending nearest middle of month. HOURS AND EARNINGS OF WAGE EARNERS IN MANUFACTURING INDUSTRIES [Compiled by the Bureau of Labor Statistics] Average hours worked per week Average hourly earnings(cents per hour) Industry group 1939 1940 1939 1940 Feb. Mar. Nov. Dec. Jan. Feb. Mar. Feb. Mar. Nov. Dec. Jan. Feb. Mar. Total.... . 37.1 37.3 38.5 38.6 37.4 37.3 37.5 64.3 64.5 65.3 66.2 66.3 66.3 66.5 Durable goods. . 36.6 36.8 39.6 39.6 38.1 37.9 38.3 70.9 71.1 71.5 72.7 72.7 72.6 72.8 Iron, Steel, Products 35.4 35.8 39.6 39.4 37.6 36.5 36.1 75.3 75.2 76.7 77.2 76.6 76.4 76.3 Machinery. . 37.6 38.0 40.9 41.3 40.4 40.1 40.7 72.5 72.8 72.3 73.2 73.5 73.7 73.9 Transportation E quipment 34.3 34.4 37.6 38.5 37.4 '37.6 38.4 89.7 90.0 88.6 90.1 89.4 '89.6 90.0 Nonferrous Metals, Products 38.3 38.3 41.0 40.9 39.2 38.4 38.9 66.6 66.7 69.0 70.3 70.1 69.6 69.7 Lumber, Products 38.5 38.5 39.7 38.6 36.9 38.0 38 4 48.7 49.2 51.4 51.3 51.2 51.3 51.5 Stone, Clay, Glass Products 35.7 36.2 37.9 37.5 35.1 '35.3 35.7 64.9 65.2 65.7 66.0 66.4 66.2 66.4 Nondurable goods. 37.5 37.7 37.6 37.7 36.9 36.8 36.9 59.1 59.1 59.9 60.5 60.7 60.8 61.0 Textiles, Products 36.1 36.3 36.1 35.9 34.8 35.1 35.1 48.8 48.9 49.3 49.7 49.9 50.5 50.5 Fabrics 37.1 36.7 37.4 37.2 36.0 35.7 35.1 46.1 45.9 47.7 47.9 48.1 48.4 48.2 Wearing apparel 34.4 35.7 33.7 33.5 32.5 34.0 35.2 53.8 54.1 52.5 53.3 53.4 54.4 54.3 Leather, Manufactures 39.2 38.2 33.8 35.7 37.2 36.7 35.6 52.2 52 4 53.9 53.7 53.4 53.7 54.1 Food, Products. 39.8 40.1 40.1 40.5 '39.6 '39.4 39.8 63.2 62.9 62.5 63.3 64.1 63.9 64.1 Tobacco Manufactures 32.0 34.2 36.6 35.8 33.3 32.8 34.5 47.3 47.4 47.9 48.9 49.6 '49.1 49.0 Paper, Printing 37.9 38.3 39.5 39.4 38.1 37.8 38 0 76.8 77.1 77.4 78 3 78.3 78.3 78.9 Chemicals, Petroleum, and Coal Products 38 2 38.5 38.9 39 0 38 4 38 4 38 4 73 8 72 8 75.1 75 1 75.6 '75.6 74.6 Petroleum refining 36.5 36.3 36.0 36.4 35.5 35.9 36.2 97.0 97.3 97.2 97.2 97.4 97.5 97.1 Other than petroleum refining. 38.8 39.4 39.8 39.8 39.4 39.2 39.2 65.4 64.3 67.4 67.5 68.0 '68.1 67.0 Rubber Products 35.9 36.1 38.0 38.1 36.6 35.3 35.9 76.1 76.3 76.8 77.6 77.6 77.7 78.0 'Revised. JUNE 1940 579 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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 Month Total R b e u si i d ld e i n n t g ial Factories Commercial Educational1 Other i an u d ti li p ti u e b s l * ic 1939 1940 1939 1940 1939 1940 1939 1940 1939 1940 1939 1940 1939 1940 January 251.7 196.2 80.2 77.4 7.1 12.9 17.3 15.9 31.7 6.1 28.9 17.7 86.5 66.3 February «. 220.2 200.6 79.0 74.9 9.5 15.4 13.5 20.2 21.8 8.1 24.7 26.9 71.6 55.2 March 300.7 272.2 125.2 121.7 13.0 21.8 17.4 23.1 27.6 9.3 39.8 19.6 77.7 76.7 April . 330.0 300.5 114.4 135.4 17.5 23.5 21.3 24.0 21.1 17.4 34.8 24.0 121.0 76.3 May 308 5 133 8 13.0 19.5 16.4 27.8 97.9 June 288 3 111 9 15 8 26 8 12 5 37.8 83.6 July 299.9 109.3 17.4 22.9 19.4 28.7 102.1 August ._.. 312.3 127.2 10.4 21.1 13.8 24.6 115.3 September 323 2 129 7 20.7 26.6 10.1 24.9 111. 1 October 261 8 118 3 16 8 22 6 9 5 23.8 70.8 November 299.8 116.6 - - 18.5 20.4 9.7 29.2 105.5 354 1 88.7 15 3 17 4 7 7 17.4 207.7 Year 3, 550. 5 1, 334. 3 174.8 246.9 201.4 342.5 1, 250. 6 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 i Privately-financed» Month 1935 1936 1937 1938 1939 1940 1935 1936 1937 1938 1939 1940 1935 1936 1937 1938 1939 1940 January. 100 215 243 192 252 196 55 149 112 118 148 93 45 66 130 75 104 104 February __ 75 140 188 119 220 201 38 79 69 61 111 82 37 62 119 68 109 119 March 123 199 231 227 301 272 68 96 66 95 128 95 55 103 165 132 173 177 April 124 235 270 222 330 53 105 74 99 160 71 130 195 123 170 May 127 216 244 283 308 47 94 93 144 135 80 122 151 139 174 June . _ 148 233 318 251 288 64 116 137 108 128 84 116 180 143 161 July 159 295 322 240 300 67 153 131 98 137 93 141 191 142 163 August.. 169 275 281 313 312 92 153 104 171 158 76 122 178 142 154 September 167 234 207 301 323 97 116 80 160 144 70 119 127 141 179 October 201 226 202 358 262 114 101 78 203 92 87 125 124 154 170 November 188 208 198 302 300 118 89 93 179 144 70 119 106 123 156 December 264 200 209 389 354 196 82 115 279 225 68 117 94 110 129 Year 1,845 2,675 2,913 3,197 3,551 1,007 1,334 1,152 1,705 1,708 837 1,341 1,761 1,492 1,842 i Back figures —See BULLETIN for February 1938, p. 159. Data for years prior to 1932 not available. COMMERCIAL FAILURES, BY DISTRICTS CONSTRUCTION CONTRACTS AWARDED, BY DISTRICTS [Figures for 37 States east of the Rocky Mountains, as reported by the[Figures reported by Dun & Bradstreet. Amounts in thousands of F. W. Dodge Corporation. Value of contracts in thousands of dollars.] dollars.] 1940 1939 Number Liabilities Federal Reserve district Apr. Mar. Apr. Fede d ra is l t r R ic e t serve 1940 1939 1940 1939 Boston 19,155 22,193 26, 549 Apr. Mar. Apr. Apr. Mar. Apr. New York 48,962 55, 207 67, 406 C Ph le i v la e d la e n lp d hia 3 1 1 7 , , 2 5 4 7 1 5 2 1 8 6 , , 0 17 0 0 4 3 17 8 , ,0 3 1 2 5 6 N Bo e s w to Y n ork 4 1 4 0 0 6 39 9 9 7 5 8 0 4 1 6 1, , 3 3 9 2 1 0 3 8 3 9 8 5 3 6 1 , ,2 0 4 1 6 1 Richmond 31, 625 31, 542 42,008 Philadelphia... _ 99 76 90 1,466 734 1,269 Atlanta _ 30,608 24, 225 22,146 Cleveland 46 78 92 497 1,432 2,093 S C t h . i L ca o g u o is . ._ .. _ . 5 1 9 7 , , 8 1 2 4 0 5 4 1 3 9 , , 2 6 8 4 7 6 2 51 1 , ,0 8 6 5 9 8 A Ri t c l h a m nt o a n .. d 4 7 8 0 4 5 4 5 6 5 6 5 3 82 4 9 8 5 6 0 8 0 0 9 5 4 2 8 5 Chicago 201 180 199 2,215 1,535 2,393 Minneapolis 9,416 5,473 10, 627 St. Louis 38 27 32 438 130 1,695 Kansas City 14, 803 12,486 14, 735 Minneapolis 19 22 20 272 504 217 Dallas 20,154 13, 945 18, 291 Kansas City 55 58 50 422 466 433 Dallas... 23 22 31 215 167 414 Total (11 districts) 300, 504 272,178 330,030 San Francisco 146 139 111 1,834 1,255 1,335 Total.. 1, 291 1,197 1,331 16, 247 11, 681 18, 579 New series. Includes cases of discontinuances where loss to creditors was involved even though actual legal formalities were not invoked. Back figures, available for 1939 only, may be obtained from Dun and Bradstreet, Inc. 580 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MERCHANDISE EXPORTS AND IMPORTS [In millions of dollars] Merchandise exports 1 Merchandise imports 2 Excess of exports Month 1936 1937 1938 1939 1940 1936 1937 1938 1939 1940 1936 1937 1938 1939 1940 January 199 223 289 213 370 187 240 171 178 242 11 -18 118 35 128 February _._ 182 233 262 219 347 193 278 163 158 200 -11 -45 99 61 147 March 195 257 275 268 351 199 307 173 190 217 —4 —51 102 77 135 April 193 269 274 231 P324 203 287 160 186 P212 -10 -18 115 45 P112 May 201 290 257 249 192 285 148 202 9 5 109 47 June 186 265 233 236 191 286 146 179 -5 —21 87 57 July. ._ 180 268 228 230 195 265 141 169 —15 3 87 61 August _. 179 277 231 250 193 246 166 176 —14 31 65 74 September 221 297 246 288 216 233 168 182 5 63 79 107 October 265 333 278 332 213 224 178 215 52 108 100 117 November 226 315 252 292 196 223 176 235 30 92 76 57 December 230 323 269 368 245 209 171 247 -15 115 98 121 Year. 2,456 3,349 3,094 3,176 2,423 3,084 1,960 2,318 33 265 1,134 858 p Preliminary. 1 Including both domestic and foreign merchandise. 2 General imports, including merchandise entered for immediate consumption and that entered for storage in bonded warehouses. Source.—Bureau of Foreign and Domestic Commerce. Back figures.—See BULLETIN for January 1931, p. 18; July 1933, p. 431; and February 1937, p. 152. FREIGHT-CAR LOADINGS, BY CLASSES DEPARTMENT STORE SALES AND STOCKS [Index numbers; 1923-25 average=100] [Index numbers based on value figures; 1923-25 average=l00] 1939 1940 Sales i Stocks (end of month) Apr. Dec. Jan. Feb. Mar. Apr. Adjusted Without Adjusted Without Month for seasonal seasonal for seasonal seasonal variation adjustment variation adjustment Adjusted for seasonal variation 1939 1940 1940 1939 1940 1939 1940 Total 60 78 78 73 69 70 Coal __ 43 71 83 68 66 75 Coke.. 56 92 90 65 70 73 January... 92 67 61 Grain and grain products- 76 87 73 75 75 79 February. 68 Livestock 40 40 39 40 39 37 March 82 71 Forest products _ 38 51 47 44 43 43 Ore _. 75 116 114 107 105 102 April 67 Miscellaneous 70 89 86 83 77 74 May Merchandise' 61 62 62 61 60 59 June 86 83 67 July 60 Without seasonal adjustment August September- 91 97 Total 58 73 72 68 67 October 77 Coal _ 36 79 95 80 70 November- 106 Coke.. 47 101 106 88 73 December.. 168 Grain and grain products... 68 75 66 69 69 Livestock _. 37 39 38 33 31 Year- 90 Forest products 39 44 41 43 44 Ore.... 31 29 25 26 26 Miscellaneous 72 81 74 71 74 1 Based on daily average sales—with allowance for changes from Merchandise * 62 60 58 59 60 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. i In less-than-carload lots. NOTE.—For description and back data see pp. 522-529 of BULLETIN Back figures.—Department store sales, see BULLETIN for August for June 1937. Based on daily average loadings. Basic data compiled 1936, p. 631, and for October 1938, p. 918; department store stocks, see by Association of American Railroads. Total index compiled by combining indexes for classes with weights derived from revenue data of BULLETIN for March 1938, p. 232. the Interstate Commerce Commission. JUNE 1940 581 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

WHOLESALE PRICES, BY GROUPS OF COMMODITIES [Index numbers of the Bureau of Labor Statistics. 1926-100] Other commodities All Year, month, or week m c t o i o e m d s i- p u r c o t d s - Foods Total H p l i r e d o a e d t s h u a e c n r ts d p T ro e d x u ti c le ts 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 ls t t a s l B m u a i t l e d r i i n a g lsp c r C a a o h l l d s l e i u e m a c d n t i s d - i 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 94.0 94.3 82.6 1930 86.4 88.3 90.5 85.2 100.0 80.3 78.6 92.1 89.9 88.7 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 73.9 75.1 64.4 1933 65.9 51.4 60.5 71.2 80.9 64.8 66.3 79.8 77.0 72.1 75.8 62.5 1934 74.9 65.3 70.5 78.4 86.6 72.9 T3.3 86.9 86.2 75.3 81.6 69.7 1935 80.0 78.8 83.7 77.9 89.6 70.9 73.5 86.4 85.3 79.0 80.6 68.3 1936 - 80.8 80.9 82.1 79.6 95.4 71.5 7Q.2 87.0 86.7 78.7 81.7 70.5 1937 86.3 86.4 85.5 85.3 104.6 76.3 77.6 95.7 95.2 82.6 89.7 77 8 1938 78.6 68.5 73.6 81.7 92.8 86.7 76.5 95.7 90.3 77.0 86.8 73.3 1939 77.1 65.3 70.4 81.3 95.6 69.7 73.1 94.4 90.5 76.0 86.3 74.8 1939—March 76.7 65.8 70.2 80.4 91.8 66.6 73.1 94.3 89.8 76.0 85.2 74.1 April 76.2 63.7 68.6 80.5 90.9 66.9 73.4 94.0 89.6 75.6 85.4 •74.4 May 76.2 63.7 68.2 80.6 91.6 67.5 73.9 93.5 89.5 75.6 85.5 74.2 June 75.6 62.4 67.6 80.2 92.3 67.3 73.0 93.2 89.5 75.2 85.6 73.8 July. . 75.4 62.6 67.5 80.2 92.5 67.6 72.8 93.2 89.7 74.5 85.6 73.4 August 75.0 61.0 67.2 80.1 92.7 67.8 72.6 93.2 89.6 74.2 85.6 73.3 September 79.1 68.7 75.1 82.1 98.5 71.7 72.8 94.8 90.9 76.6 86.6 76.6 October 79.4 67.1 73.3 83.8 104.6 75.6 73.9 95.8 92.8 77.6 87.8 77.6 November 79.2 67.3 72.3 84.0 104.0 76.4 74.1 96.0 93.0 77.4 88.4 77.0 December.. _ 79.2 67.6 71.9 83.9 103.7 78.0 72.8 96.0 93.0 77.7 88.5 77.4 1940—January 79.4 69.1 71.7 83.9 103.6 77.9 72.7 95.8 93.4 77.7 87.9 77.7 February 78 7 68.7 71.1 83.2 102.4 75.4 72.4 95.3 93.2 77.5 88.0 77.3 March 78.4 67.9 70.2 82.9 101.8 74.0 72.2 95.5 93.3 77.0 88.0 76.9 April 78.6 69.4 71.6 82.5 101.8 72.9 71.8 94.5 92.5 76.8 88.4 77.7 Week ending— 1940— February 3 78 8 69.6 71.7 83.6 103.0 75.3 73.3 95.6 93.1 77.5 89.5 77.1 February 10 78.5 68.9 70.9 83.5 103.2 75.3 73.0 95.5 93.1 77.4 89.5 77.1 February 17 78.3 68.6 70.5 83.3 103.1 74.4 73.0 95.3 93.2 77.5 89.6 77.2 February 24 _ 78.6 69.4 71.0 83.3 102.7 74.2 73.0 95.3 93.0 77.4 89.5 77.2 March 2 78.4 68.8 70.5 83.2 102.8 73.6 72.8 95.5 93.3 77 4 89.5 76.9 March 9 78.3 68.5 69.9 83.1 102 4 73.3 72.8 95.5 93.3 77.1 89.6 76.8 March 16 78.2 68.0 70.4 83.0 102.5 73.0 72.6 95.5 93.2 77.0 89.6 76.9 March 23 77.9 67.5 69.9 82.9 102.1 72.7 72.6 95.4 93.3 76.9 89.5 76.5 March 30. 77.9 68.1 69.8 82.8 102.0 72.5 72.3 95.5 93.1 76 7 89.5 76.6 April 6 . 77.6 67.0 69.7 82.7 101.6 71.9 72.5 95.4 93.2 76.5 89.4 76.6 April 13 78.0 68.0 70.8 82.7 102.1 71.9 e72.5 95.4 92.8 76.6 C89.9 76.6 April 20 . 78.5 69.6 71.9 82.6 102.5 71.6 C72. 3 95.3 92.8 76.9 C89. 9 76.8 April 27 79.0 71.6 72.8 82.5 102.5 71.5 C72.2 94.9 92.7 77.0 C89. 9 76.9 May 4 78 9 71.3 72 5 82.6 102 5 71.5 C72. 3 95 0 92.6 76.8 C89 9 76.9 May 11.. . 78.4 69.2 71.6 82.5 102.2 72.3 72.4 94.5 92.0 76.8 89.9 76.8 May 18 78.5 68.2 71.7 82.9 102.4 72.6 72.3 94.7 92.7 76.8 89.9 78.2 May 25 77.8 66.8 70.7 82.7 101.4 72.4 72.4 94.7 92.6 76.6 89.9 77.4 1939 1940 1939 1940 Subgroups Subgroups Apr. Jan. Feb. Mar. Apr. Apr. Jan. Feb. Mar. Apr. Farm Products: Metals and Metal Products: Grains 55.2 73.5 72.8 73.4 77.2 93.3 93.4 93.4 93.4 93.5 Livestock and poultry 75.5 67.2 65.6 67.1 68.4 Farm machinery 94.6 94.6 94.6 94.7 94.7 Other farm products 58.5 68.6 68.9 66.3 67.4 Iron and steel 96.1 96.3 96.3 96.4 94.3 Foods: Motor vehicles 93.4 94.7 94.7 94 8 94.8 Dairy products _. 58.1 81.9 80.0 78.6 77.4 Nonferrous metals 74.7 82.6 79.2 79.7 79.2 Cereal products 72.2 80.4 82.4 82.4 83.2 Plumbing and heating.. 79.3 79.3 79.1 81.0 80.9 Fruits and vegetables 64.3 60.3 58.7 58.7 65.7 Building Materials: Meats 81.0 69.9 68.4 69.2 71.1 Brick and tile .. 93.0 91.6 91.2 90.4 90.2 Other foods 61.6 65.8 66 3 63.0 63 2 91.5 91.4 91.4 91.2 90.3 Hides and Leather Products: Lumber 91.5 97.6 97.6 97.8 96.1 Shoes . . 101.2 107.8 108.2 108.4 108.2 Paint and paint materials 81.3 87.2 86.8 87.2 86.7 Hides and skins 68.3 102.6 97.0 94.3 94.8 Plumbing and heating 79.3 79 3 79.1 81.0 80.9 Leather 82.8 96.0 94.2 93.5 93.2 Structural steel 107.3 107.3 107.3 107.3 107.3 Other leather products 95.6 100.0 100.0 100.0 100.0 Other building material3 89.7 93.2 92.9 92.7 92.3 Textile Products: Chemicals and Allied Product Clothing 81.6 84.5 84.9 85.1 84.7 Chemicals1 84.6 85.3 85.3 85.1 85.0 Cotton goods _ _ __ - 63.4 75.4 73.6 71.8 70.2 Drugs and Pharmaceuticals* 77.4 81 3 81.3 81.4 81.8 Hosiery and underwear 60.2 68.4 64.5 62.2 61.7 Fertilizer materials» 68.1 71 3 71.0 70.6 70.7 Silk * . . 41.1 61.8 51.6 49.9 45.4 Mixed fertilizers i 72.9 73.9 74.2 73.9 73.8 Rayon 2 28.5 29.5 29.5 29.5 29.5 Oils and fats 45.9 52.4 51.0 47.8 46.8 Woolen and worstedgoods — 75.2 90.4 87.2 84.5 83.8 Housefurnishing Chods: Other textile product5 64.9 81.3 76.8 74.9 74.6 Furnishings 89.6 94.0 94.2 94.2 94.5 Fuel and Lighting Material: Furniture >. _ . 81.0 81 4 81.9 81.5 81.9 Anthracite 74.7 78.7 79.2 79.2 77.4 Miscellaneous: Bituminous coal . .- _ 98.6 98.0 98.2 97.3 96.4 Auto tires and tubes 60.5 55.6 55.6 55.6 58.0 Coke.. 104.2 109.8 109.7 109.6 109.6 Cattle feed 92.1 93 0 93.7 95.2 100.1 Electricity 81.4 Paper and pulp 81.1 89.8 89.5 89.0 89.5 Gas _ _ 84.1 78.6 81.6 80.4 Rubber, crude 33.3 39 6 38.7 38.3 39.4 Petroleum products.. 51.9 51.7 50.9 50.4 50.4 Other miscellaneous 81.4 87.4 86.6 85.8 85.1 i Revised series * New series. c Corrected. Back figures—For monthly and annual indexes of groups, see Annual Report for 1937 (table 86); for indexes of subgroups, see Annual Report for 1937 (table 87). 582 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATISTICS FOR FEDERAL RESERVE CHART BOOK—CURRENT SERIES Chart 1940 Chart 1940 book book page Apr. May May M 1 a 5 y May page Feb. Mar. Apr, WEEKLY FIGURES Wednesday figures; in billions of MONTHLY FIGURES Index numbers RESERVES, GOLD, AND dollars BUSINESS CONDITIONS mS-i5=100 CURRENCY Wholesale commodity prices: * T R T E G M M R x r r e o e o e e e c s q l m n a a d e e W U B N R u C C s s s r e b i v s s i . u e u h y o e E M r l t e e s w i r l r e E u S o r r s c y e y E i d e K n c . n B a r M s b d k Y v t g L d c Q e r a c r a i B e e a o Y e r o s y n i n o v s s p E c r r k c 2 k h e v c e k o o b R R i r u s ' t s u a t c v b E — y l C i r n n e a B a t P s e s t s i k t b l e O A t d e t i a o s c a y o • R d N i n t « t n u n a T K c — * • k r l I e S i N s s > t t » G i o . • e t . a s . . l . _ . . . 3 3 3 , , , 3 5 7 7 6 9 5 7 6 3 5 3 7 7 1 1 0 2 2 2 6 6 3 2 7 1 8 . . . . . . . . . . . . . ) 5 7 5 1 4 3 4 3 8 5 7 8 4 0 7 6 3 7 1 1 8 4 2 1 2 7 1 1 2 0 2 2 6 3 7 6 1 8 2 . . . . . . . . . . . . . ) 1 4 7 8 5 5 3 2 4 5 4 7 8 6 6 4 0 7 9 7 7 7 7 3 1 9 1 1 0 2 2 6 3 6 7 2 2 8 . . . . . . . . . . . . . ) 1 3 4 7 5 5 8 4 5 3 5 8 8 4 1 5 1 7 9 8 1 4 5 7 2 1 P 1 1 P 3 6 2 2 6 1 7 2 3 8 0 . . . . . . . . . . . . . ) 6 7 3 4 6 5 4 4 2 0 2 9 8 1 9 5 9 5 0 2 7 5 2 2 7 3 P 1 1 P 2 6 3 3 6 2 1 2 9 7 0 . . . . . . . . . . . . . ) 2 4 4 8 5 0 2 4 4 3 6 6 8 2 7 1 5 2 7 0 8 9 7 1 4 1 F D D I F F M n r a a e e d e a c c p p i n u t t N T D g U E F G a a o o u s h r r o r n o r r t n f u e t a t y y t r a t g n r m i r - m i n a c t m A c F F a a l O d p e l e c a t e a e l b l o u a m d a u e a t l n r n n p h l o r y r r n d t t p e m l a S c i r e d r y o n 8 o l o b o s r s s t o a g t a t d l m l p c o o d y l e t u s r o p e r r i f m m o l c e n e m s r d t : g o o e s s i m u _ s d o n d a t _ o c l n t i 6 u o e _ t c t c i d s s 6 k e t i 6 s s i t o i 6 e n s : • 31, 4 4 3 4 3 4 4 3 3 3 3 3 3 3 3 3 7 7 5 5 7 3 3 7 1 7 2 2 1 1 2 2 1 1 1 1 4 6 9 8 7 0 7 6 8 0 0 7 7 0 7 1 0 1 8 3 8 3 8 0 3 1 9 8 . . . . . . . . 8 4 7 1 7 2 7 7 1 1 0 9 8 8 6 7 7 0 0 8 1 1 2 7 1 8 0 4 5 D . 4 . 6 7 . 0 . . 0 . . . Q 8 2 9 4 9 9 4 2 5 7 4 0 1 4 P P 1 9 6 8 P 9 7 7 0 9 1 9 2 8 1 7 6 . 0 7 . . . . . . 4 6 6 5 1 2 4 0 9 Total, 101 cities: Loans and investments. 14 23.58 23.54 23.58 23.59 23.54 In millions of dollars Investments 14 14.93 14.88 14.92 14.95 14.98 Construction contracts awarded:7 T A i d d m j e u e L p s o o t d e s a e d i n p t s s o d s e it m s a _ n _ d _ _. 1 1 1 5 5 4 1 5 8 9 . . . 3 6 7 1 6 5 1 8 5 9 . . . 3 6 7 1 6 0 1 8 5 9 . . . 6 3 7 5 2 4 1 8 5 9 . . . 3 6 9 2 3 4 2 8 5 0 . . . 5 3 2 6 1 0 Exp T R O or o e t t h s s ta i e a d l r n e d n t i i m al ports: 4 4 4 1 1 1 2 1 1 5 5 0 8 5 3 2 1 1 5 5 0 5 0 5 P116 New D U F o Y . o r m o S e r . i e k g G s n t C i o c b v i a t b ' y t n a : k d n e k b p a o b l a a si l n a t c s n . e c . s , e - . s . . 1 1 1 5 5 5 8. . . 4 7 5 3 3 8 8. . . 4 5 7 6 8 2 8. . . 4 7 5 8 1 8 8. . . 6 7 5 1 1 8 8. . . 4 5 6 9 8 9 E E G x x e c p n e o e s r r s a t s l o f i ( m i e n x p cl p o . r o r t r e s t - s e . x . ports). 4 4 4 9 9 9 3 2 1 4 0 4 7 0 7 3 2 1 5 1 3 1 7 5 P ? P 3 1 2 2 1 1 4 2 2 100 c U B O C it r o . t i o h m e S k e s . m r e G o r s e u s o e 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 N o e l s a i e g n w s a ti Y o o n r s k .. : 1 1 1 1 6 6 6 6 4 1 1 . . . . 8 6 3 4 8 9 2 8 4 1 1 . . . . 8 2 6 4 8 8 8 8 4 1 1 . . . . 9 6 2 4 8 8 4 8 4 1 1 . . . . 9 2 6 4 9 6 8 6 5 1 1 . . . . 0 4 2 6 4 0 6 7 Inco T T S O m a o o t e l h t t a a e p a r l r i P a e u y e s n m a a n d e d n ju t w s s: t a e g d e s 6 5 5 5 5 0 0 0 0 6 5 3 2 , , , , 0 7 5 2 1 5 6 6 5 2 7 3 5 5 3 2, , , , 1 9 7 9 9 3 3 2 1 8 5 6 P P P P 6 2 5 3 , , , , 8 9 7 1 8 0 0 7 5 6 9 6 Cash farm income: U C O o . t h m S e . m r G s e o e rc c v i u ' a t r l o i t l b i o e l a i s n g .. s a tions.. 1 1 1 7 7 7 2 6 2 . . . 7 5 2 3 2 2 6 2 2 . . . 5 2 7 1 1 3 2 6 2 . . . 4 7 2 9 3 2 2 6 2 . . . 4 7 2 8 3 2 2 2 6 . . . 2 7 4 3 2 6 L T C i o r v o t e a p s l s 8 t 8 o ck and products9. 5 5 5 1 1 1 3 6 22 4 2 1 3 4 3 2 6 3 0 0 6 1 4 P P P3 6 1 7 2 8 2 7 5 MONEY RATES AND SECURITY Averages of daily figures3; per cent Government payments... 51 98 67 MARKETS per annum F. R. Bank discount OTHER In billions of dollars rate, N. Y 19 1.00 1.00 1.00 1.00 1.00 Commercial paper 19 .56 .56 .56 .56 .56 ientral gold reserves: B U a . n S k . e T r r s e 'a a c s c u e r p y ta b n il c ls e s _. 2 1 1 9 . . 4 0 4 2 . . 4 0 4 2 . . 4 0 4 3 . . 0 4 6 4 . . 4 0 4 8 U En n g it l e a d n d States 1 0 8 ) .18 1 0 8. ) 43 0 18 ) . 77 U U . . S S . . T T r r e e a a s s u u r r y y b no o t n e d s s 21, 2 2 1 5 2. . 2 49 8 2. . 2 4 5 5 2. . 2 4 8 8 2. . 4 7 3 0 2. . 4 7 7 7 N Fr e a t n h c e e rlands 2.71 2.00 P P 2 . . 0 6 0 5 C C o o r r p p o o r r a a t t e e B A a a a a b b o o n n d d s s 2 2 5 5 4 2 . . 7 8 5 3 4 2 . . 7 8 1 2 4 2 . . 6 8 8 2 4 2 . . 9 9 0 2 3 5. . 1 0 3 2 U. d e S b . t — G t o o v ta 't l interest-bearing 20 41.84 41.98 42.12 Bonds 20 29.59 29.69 29.80 Wednesday figures; in unit indicated Notes 20 6.20 6.13 6.13 Bills 20 1.31 1.31 1.31 Stock prices, total * 27, 29 92 91 92 79 70 Special issues 20 4.74 4.86 4.88 Industrial 27 109 107 108 93 82 Railroad 27 29 29 24 21 Volu P m ub e lic o f u t t i r l a it d y i ng * (mill. 27 ,87 87 77 71 QUARTERLY FIGURES» J S u e l p y t - . O D c e t c . . - M Ja a n r .- . shares) 29 .74 1.00 3.17 1.92 1939 1939 1940 Brokers' loans (mill, dollars) 29 623 626 618 602 544 In millions oj dollars BUSINESS CONDITIONS Figures for week3; in unit indicated Domestic corporation security Wholesale commodity prices: * issues, total 653 509 557 All commodities... 33 79.0 78.9 78.4 78.5 77.8 New 28 92 67 107 Farm products 33 71.6 71.3 69.2 68.2 66.8 Refunding 28 560 442 450 Foods 33 72.8 72.5 71.6 71.7 70.7 Other commodities 33 82.5 82.6 82.5 82.9 82.7 Steel plant operations Per cent per annum (per cent of capacity) 38 60.0 61.8 65.8 70.0 73.0 Au ( t t o h m ou o s b . i c le a rs p ) r oduction 38 101.4 99.3 98.5 99.0 96.8 Jus N to e m w e r Y s' o r r a k t e C s: ity 23 2.04 1.96 2.03 El ( e m ct i r l i l c . k p w ow . h er r s p .) r oduct , i on 39 2,398 2,386 2,422 2,449 7 E o a t s h t e e r r n c N it o ie r s th ern and . 23 2.78 2.59 2.67 To ( t t a h l o f u r s e . i g c h a t r - s c ) a r loadings 39 644.5 665.5 0.7 679.0 687.4 11 c i S ti o e u s t hern and Western 23 3.31 3.32 3.35 p Preliminary. e Estimated. Points in total index of manufacturing production. 1 Less than $5,000,000. Three-months moving average adjusted for seasonal variation. 2 Averages of daily figures, see footnote 3. Series revised for the period from January 1936 to November 3 Figures are shown under the Wednesday date included in the weekly period. 939, inclusive. Back figures may be obtained from the Division 4 Index numbers, 1926=100. if Research and Statistics. 5 Adjusted for seasonal variation. 9 Banking statistics for call report dates are shown in table n following page. NOTE.—Copies of this chart book can be obtained from the Board at a price of 50 cents each JUNE 1940 583 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATISTICS FOR FEDERAL RESERVE CHART BOOK—QUARTERLY BANKING SERIES [In billions of dollars] Chart 1937 1938 b p o a o g k e Ju 3 n 0 e D 3 e 1 c. Mar. Ju 3 n 0 e Se 2 p 8 t. Dec. M 2 a 9 r . Ju 3 n 0 e Oc 2 t . De 3 c 0 . M 2 a 6 r. All banks in the United States: Total deposits and currency- 10 57.42 56.83 56.78 56.74 P57. 65 •59.12 '59.15 P61. 00 63.03 •64. 40 P65. 05 Time deposits 10 25.96 26.26 26.34 26.27 ?26. 27 26. 38 P26. 58 P26. 83 26. 91P27. 00 P27. 30 Demand deposits adjusted __. 10 25.26 24.05 24.13 24.39 '25.10 ?26. 01 '27. 32 '29.10 •30.05 P30. 60 Currency outside banks 10 5.53 5.69 5.50 5.47 P5. 50 P5.83 *5. 68 P6.05 P6.23 P6,50 P6.30 Member banks: Demand deposits adjusted... 11 21.40 20.39 20.51 20.89 21.60 22.29 22. 36 23.59 25.12 25.68 26.46 Time deposits 11 11.35 11.52 11.59 11.56 11.46 11.51 '11. 62 11.72 11.73 11.85 11.98 Interbank balances 11 5.30 5.44 5.62 6.10 6.09 6.51 6.82 7.10 *8. 24 8.51 4 8.72 Loans and investments 11 32.74 31.75 31.52 30.72 31.63 32.07 32.10 32.60 33.08 33.94 34.16 Inve U st . m S e . n G ts o , v t e o r t n a m l ent obligations, total 1 1 2 1 1 1 2 8 . . 6 4 9 5 1 1 7 2 . . 7 3 9 7 1 1 7 2 . . 9 4 8 5 1 1 7 2 . . 7 3 8 4 1 1 8 3 . . 6 0 9 1 1 1 8 3 . . 8 2 6 2 1 1 9 3 . . 0 3 5 5 1 1 9 3 . . 4 7 6 8 1 1 9 3 . . 6 8 1 1 1 14 9. . 9 8 33 2 1 0 4 . . 2 4 2 2 Direct obligations 13 10.87 10.57 10.63 10.22 10.71 10.88 10.69 10.95 10.89 11.18 11.31 Guaranteed obligations 13 1.82 1.80 1.83 2.13 2.30 2.34 2.66 2.83 2.92 3.14 3.11 Other securities, total 12 5.77 5.42 5.52 5.44 5.68 5.64 5.70 5.69 5.79 5.65 5.80 State and local government securities... 13 2.13 2.03 2.19 2.13 2.30 2.45 2.55 2.55 2.76 2.69 2.90 Other domestic 13 3.40 3.21 3.15 3.13 3.19 3.01 2.96 2.94 2.77 Foreign securities 13 .23 .18 .18 .18 .18 .18 .18 .19 .19 Loans, total 11 14.29 13.96 13.55 12.94 12.94 13.21 13.05 13.14 13.96 13.94 Security loans, total12 12 4.37 3.70 3.54 3.32 3.30 2 1.75 1.57 1.47 1.49 Brokers' loans 13 1.54 .95 .70 .71 .97 .84 .73 .79 Loans on securities (excluding brokers' loans) 2 13 2.83 2.75 2.67 2.61 2.59 2.78 .73 .74 .70 Real estate loans 12, 13 2.51 2.55 2.56 2.61 2.66 2.72 2.75 2.83 2.96 Other loans, totalJ 2 12 7.41 7.71 7.45 7.01 6.97 2 8. 74 8.73 8.85 9.51 Commercial loans 2 13 6.66 7.00 6.75 6.40 6.36 2 5.45 5.53 5.57 6.12 Open-market paper 13 .64 .64 .61 .49 .48 .44 .42 .42 .45 Loans to banks 13 .12 .07 .10 .12 .13 .12 .10 .06 .06 All other loans 3 3 2.73 2.67 2.80 2.89 p Preliminary. c Corrected. i In chart 12 loans to banks on securities are included in the total of "security loans" prior to June 30, 1937 and in the total of "other loans" since that date. » Figures are reported on somewhat different basis beginning December 31, 1938. For detailed explanation of the changes and for estimates on old basis as of December 31, 1938, see BULLETIN for April 1939, page 332. 8 Not originally plotted in chart book. 4 Partly estimated. • Detailed breakdown of loans and investments now available on June and December dates only. NUMBER OF BANKS AND BRANCHES IN UNITED STATES, 1933-1940 [Figures for 1940 are preliminary] Member banks Nonmember banks Bran End of year figures Other than mutual except where otherwise savings and Total indicated private banks National State Mutual Private 2 In Outside savings head- head- Insured i Not office office insured i cities cities Number of Banking Offices 1933 6,275 1,817 9,HI 704 103 17,940 1934 6,705 1,961 3 9, 57Q 705 246 19,196 1935 6,715 1,953 8,556 1,088 698 143 19,153 1936 6,723 2,032 8,436 1,043 693 139 19,066 1937 6,745 2,075 8,340 997 691 79 18, 927 1938 6,723 2,106 8,224 958 690 73 18, 774 1939 6,705 2,177 8,098 931 683 69 18, 663 1940 (March 31) 6,697 2,195 8,052 926 4 684 18, 621 Number of Banks (Head Offices) 1933. „ 5,154 857 8,J41 579 98 15,029 1934 5,462 980 7,693 1,108 579 241 16,063 1935 5,386 1,001 7,728 1,046 570 138 15,869 1936 5,325 1,051 7,588 1,004 565 134 15,667 1937 5,260 1,081 7,449 960 563 74 15,387 1938 5,224 1,114 7,316 917 555 68 15,194 1939 5,187 1,175 7,171 887 551 63 15,034 1940 (March 31) 5.177 1,198 7,125 881 551 61 14, 993 Number of Branches 1933 1,121 960 7in 125 5 2,911 J.784 1,127 1934. . L, 243 981 778 126 5 3,133 ,776 1,357 1935 . . L, 329 952 828 42 128 5 3,284 L, 754 1,530 1936 .. 1,398 981 848 39 128 5 3,399 ,749 1,650 1937.. . L, 485 994 891 37 128 5 3,540 L, 757 1,783 1938 L, 499 992 908 41 135 5 3,580 L, 743 1,837 1939 L, 518 1,002 927 44 132 6 3,629 L, 738 1,891 1940 (March 31) L, 520 997 927 45 133 6 3,628 L, 729 1,899 1 Federal deposit insurance did not become operative until January 1, 1934. * 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 Cur- . rency and, accordingly, only such private banks as report to State banking departments are in the figures shown for subsequent years. 3 Separate figures not available for branches of insured and not insured banks. 4 Comprises 51 insured banks with 25 branches and 500 uninsured banks with 108 branches. The figures beginning with 1939 exclude one bank with 4 branches which theretofore was classified as an insured mutual savings bank but is now included with "Nonmember banks other than mutual savings and private banks." 6 Comprises 1 insured bank with no branches and 60 uninsured banks with 6 branches. 584 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANALYSIS OF CHANGES IN NUMBER OF BANKS AND BRANCHES, JANUARY 1—MARCH 31,1940 [Preliminary figures] Member banks Nonmember banks Other than mutual savings and private banks Total National State M sav u i t n u g a s l Private Insured Not insured Analysis of Bank Changes Number of banks on December 31, 1939 15,034 5,187 1,175 7,171 887 551 63 Increases in number of banks: Primary organization (new banks) i + 8 + 1 + 7 Reopenings of suspended banks + 1 + 1 Decreases in number of banks: Suspensions — 5 - 5 Voluntary liquidations 2 __ _ _ -14 - 2 -11 -1 Consolidations, absorptions, etc. -31 -12 - 5 -12 - 2 Inter-class bank changes: Conversions— National into State - 3 + 1 + 2 State into national + 6 - 3 Private into State o + 1 - 1 Federal Reserve membership— 3 Admissions of State banks +30 -28 - 2 Withdrawals of State banks Federal deposit insurance— 4 Admissions of State banks + 3 - 3 Withdrawals of State banks Net increase or decrease in number of banks -41 -10 +23 -46 - 6 - 2 Number of banks on March 31, 1940 14,993 5,177 1,198 7,125 881 551 61 Analysis of Branch Changes Number of branches on December 31, 1939 3,629 1,518 1,002 927 44 132 6 Increases in number of branches: De novo branches. _ + 5 + 1 + 3 + 1 Banks converted into branches _ _ +11 + 3 + 7 + 1 Decreases in number of branches: Branches discontinued -17 -11 - 1 - 5 Inter-class branch changes: Branches of a State member bank which became branches of a national bank + 6 - 6 Branches of a nonmember bank which became a national bank. + 3. - 3 Branches of nonmember banks which became State member banks + 2 - 2 Net increase or decrease in number of branches._ - 1 + 2 - 5 + 1 + 1 Number of branches on March 31, 1940._ _ _ _ 3,628 1,520 997 927 45 133 6 1 Exclusive of new banks organized to succeed operating banks. 2 Exclusive of liquidations incident to the succession, conversion and absorption of banks. 3 Exclusive of conversions of national banks into State bank members, or vice versa, as such conversions do not affect Federal Reserve membership. * Exclusive of conversions of member banks into insured nonmember banks, or vice versa, as such conversions do not affect Federal Deposit Insurance Corporation membership. Back figures.—See Annual Report for 1939 (table 16) and BULLETIN for February 1939, p. 110. 585 JUNE 1940 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RETAIL INSTALLMENT PAPER HELD BY INSURED COMMERCIAL BANKS DECEMBER 30,1939, BY GEOGRAPHIC DIVISIONS AND STATES [Dollars amounts in thousands] Number of insured Total loans Retail installment paper commercial banks 1 other than open market Geographic division and State i s R n o s m e p t p a a e o l p l r r m e t e r i t e n a n g il t i R n n s e o p t p a a r o l p e l r m e t t a r i e n il n g t a e o p p n s r s u d a t e a r p c c t c l e e u o a h r r a r , a l i r n o t s y r i s i a e e i n n n s a f g o l s g , r Total s a s f a r u e l v o A e c t e m o s u r h m r i i o s e c r i o d f e n l t e t a g i b a s v n y i e l d s o s f a t r e l h o A e c e m s u r r r i o s e r g i d f e n o t a g b o a n d y il d s c R t u o l a s o t t t a a o i l o n m t s o o e f r Total, all States 10,382 3,116 10,619,926 541,367 387, 647 153,720 5.1 New England _ 372 129 697,859 21,361 14,731 6,630 3.1 Maine _ 44 16 42,983 1,722 1,364 358 4.0 New Hampshire 40 16 21,084 1,132 683 449 5.4 Vermont _. 54 21 22,364 1,245 787 458 5.6 Massachusetts 149 43 461, 307 13, 450 9,884 3,566 2.9 Rhode Island 13 3 54, 652 711 580 131 1.3 Connecticut 72 30 95,469 3,101 1,433 1,668 3.2 Middle Atlantic 1,287 858 3, 884, 555 119,430 51, 718 67, 712 3.1 New York 487 244 2, 768,040 69, 403 23, 932 45,471 2.5 New Jersey 208 148 266, 329 19,134 11,853 7,281 7.2 Pennsylvania __ 592 466 850,186 30,893 15, 933 14,960 3.6 East North Central .. 2,438 532 lt 675,485 89, 737 73, 540 16,197 5.4 Ohio _ _ . 544 135 464,830 22,947 18,198 4,749 4.9 Indiana ._ _ _. 338 137 152,855 15, 436 13, 450 1,986 10.1 Illinois 692 137 677, 740 16,414 12,858 3,556 2.4 Michigan ._ . 413 15 214, 501 26,465 22, 571 3,894 12.3 Wisconsin 451 108 165, 559 8,475 6,463 2,012 5.1 West North Central 2,549 403 1,051, 582 72, 885 55, 991 16,894 . 6.9 Minnesota 619 26 264, 277 22, 288 14,326 7,962 8.4 Iowa _ __ 527 56 186,976 14,703 12,179 2,524 7.9 Missouri 476 111 331, 204 18, 453 14,434 4,019 5.6 North Dakota 129 28 29, 636 2,581 2,015 566 8.7 South Dakota 148 16 34,178 2,855 2,332 523 8.4 Nebraska 266 98 102, 254 3,496 3,007 489 3.4 Kansas 384 68 103,057 8,509 7,698 811 8.3 South Atlantic 998 482 881,644 50,076 37, 532 12, 544 5.7 Delaware 18 24 31, 748 623 483 140 2.0 Maryland 77 97 98,006 5,495 2,139 3,356 5.6 District of Columbia 17 10 62,893 6,153 5,124 1,029 9.8 Virginia . 234 79 208, 981 11,949 8,927 3,022 5.7 West Virginia 97 75 72,692 4,251 2,977 1,274 5.8 North Carolina _ 139 79 118,359 4,901 3,603 1,298 4.1 South Carolina .61 49 42,721 1,438 1,365 73 3.4 Georgia _ 217 48 169, 308 10, 251 9,269 982 6.1 Florida 138 21 76, 936 5,015 3,645 1,370 6.5 East South Central 716 349 486, 754 16,017 12, 916 3,101 3.3 Kentucky 197 175 141, 714 4,234 2,806 1,428 3.0 Tennessee _ . 237 54 204,984 7,366 6,338 1,028 3.6 Alabama 154 54 96, 234 2,951 2,536 415 3.1 Mississippi 128 66 43,822 1,466 1,236 230 3.3 West South Central 1,264 241 745, 708 39, 224 34,711 4,513 5.3 Arkansas 156 52 49,017 2,686 2,290 396 5.5 Louisiana __ _ _ 114 28 132,959 3,912 3,306 606 2.9 Oklahoma 347 33 130, 910 10,485 8,815 1,670 8.0 Texas __ 647 128 432,822 22,141 20,300 1,841 5. 1 Mountain 411 66 228,157 16, 470 12, 873 3,597 7.2 Montana... _ ._ 96 15 30, 672 1,514 1,085 429 4.9 Idaho 39 10 23, 880 2,166 1,741 425 9.1 Wyoming 47 11 20, 334 1,198 1,081 117 5.9 Colorado... __ _ ._ __ 120 17 69, 750 4,281 3,907 374 6.1 New Mexico. 35 5 16, 205 1,675 1,143 532 10.3 Arizona 9 3 25, 578 2,077 1,052 1,025 8.1 Utah_ 54 5 35, 142 2,506 2,087 419 7.1 Nevada 11 6,596 1,053 111 276 16.0 Pacific 347 56 968,182 116,167 93, 635 22, 532 12.0 Washington 127 7 141,415 12, 937 10,493 2,444 9.1 Oregon 61 10 78, 749 10,173 8,732 1,441 12.9 California 159 39 748, 018 93, 057 74, 410 18, 647 12.4 1 Exclusive of 41 banks from which reports on "Retail installment paper" were not received. 2 "Customer loans" as used here consists of total loans leissss open market paper, real estate loans, and loans for purchasing or carrying securities. 586 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RETAIL INSTALLMENT PAPER HELD BY INSURED COMMERCIAL BANKS [In cities with population of 300,000 or more, December 30, 1939] Retail installment paper Number of banks (In thousands of dollars) Cities s i r R t n e a p g t e l a a l p i s p m l o o e r e m i r t n n - e - t s r R t e i a p n t e l a a g l p i p m l o n e e r i r o t n n - - t Total s a s fr a e u o A l c t e m u o r s r i m s o e r i d f o e n t a t g i b a n v i y d l e s s fr a e o A l c e m o u r s t r i h s o e r e i d f e n r t a g b a n i y d l vehicles goods Baltimore 10 4,241 1,120 3,121 Boston 6,691 4,854 1,837 Buffalo 2,150 517 1,633 Chicago 4,179 3,017 1,162 Cincinnati 1,618 1,127 491 Cleveland 4,544 3,421 1,123 Detroit 5,975 4,715 1,260 Indianapolis 289 248 41 Jersey City . 120 109 11 Kansas City, Mo 2,304 1,954 350 Louisville 1,452 1,171 281 Los Angeles 18, 529 14,044 4,485 Milwaukee 1,289 790 499 Minneapolis 4,936 3,391 1,545 Newark 10, 267 6,197 4,070 New Orleans 408 276 132 New York 52,860 14, 542 38, 318 Philadelphia 13,661 4,817 8,844 Pittsburgh 3,554 1,113 2,441 Portland, Oreg 3,398 3,032 366 Rochester 2,521 401 2,120 St. Louis 9,204 6,677 2,527 San Francisco 12,463 10, 506 1,957 Seattle 3,152 2,546 606 Washington 6,153 5,124 1,029 Total, 25 leading cities 301 186 175, 958 95, 709 80, 249 NOTE.—Retail installment paper held by out-of-town branches is distributed in this table according to the location of the branches, not according to the location of the head offices of such banks. JUNE 1940 587 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MEMBER BANK OPERATING RATIOS, 1939, BY FEDERAL RESERVE DISTRICTS (Averages of individual bank ratios expressed as percentages) Federal Ressrve district All Item tr d i i c s t - s B to o n s- Y N o e r w k P a p d h h e i i l a l - - C la le n v d e- m Ri o c n h d - la A n t t - a c C a h g i o - L S ou t. is n M o e l a i i n p s - - K C s a a it n s y - Dallas F c S i r s a a c n n o - Ratios to total earnings: Interest and discount on loans 54.5 50.7 47.3 49.4 51.7 61.9 60.3 50.6 55.3 47.9 61.2 66.0 61.1 Interest and dividends on securities 29.8 33.0 36.5 39.5 36.0 25.4 23.6 31.2 29.3 30.3 21.2 19.1 22.9 C A fi q 9 fi q 7 5 7 5 5 All other earnings 10.3 9.8 9.9 8.5 8.6 8.6 11.2 10.9 10.6 17.5 9.9 9.2 10.5 Total earnings _ 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Salaries and wages _. _ 29.2 30.4 28.6 22.9 25.3 26.1 29.6 30.0 28.1 30.1 34.2 34.5 31.3 Interest on time deposits 17.1 16.0 19.8 25.2 23.1 22.4 14.7 17.6 16.6 18.5 9.1 4.9 16.7 Real estate taxes 2.5 2.6 3.2 2.2 1.8 1.9 3.1 1.8 2.5 2.6 2.0 4.5 1.9 Other taxes 3 9 3 7 2 1 4 3 5 2 4 1 3 7 3.7 4.9 3.7 4.1 4.4 3.2 All other expenses _ ___ 18.8 20.3 20.6 17.1 16.3 16.7 19.1 19.5 18.6 19.1 19.0 20.2 18.4 Total expenses _ __ 71.5 73.0 74.3 71.7 71.7 71.2 70.2 72.6 70.7 74.0 68.4 68.5 71.5 Net earnings 28.5 27.0 25.7 28 3 28.3 28.8 29.8 27.4 29.3 26.0 31.6 31.5 28.5 Net charge-offs, etc. _ 4.6 4.9 9.7 10.6 3.4 2.1 2.9 .2 2.8 6.8 4.0 1.9 3.7 Net profits. _ __ 23.9 22.1 16.0 17.7 24.9 26.7 26.9 27.2 26.5 19.2 27.6 29.6 24.8 Ratios to total capital accounts: Net earnings 8.6 6.3 7.1 6.7 7.7 8.3 9.0 8.9 8.9 9.7 10.9 10.0 10.3 Net charge-offs, etc. _ _ 1.6 1.2 3.1 2.6 1.0 .7 1.0 .5 1.2 2.6 1.6 .9 1.7 Net profits 7.0 5.1 4.0 4.1 6.7 7.6 8.0 8.4 7.7 7.1 9.3 9.1 8.6 Cash dividends declared 2.9 2.4 1.9 1.9 2.1 2.8 3.4 2.3 3.1 3.0 4.3 3.5 Real estate assets _ _ 24.4 20.3 30.6 32.4 24.6 28.0 27.2 20.4 24.2 24.1 16.8 20.4 25.5 Ratios to total assets : Total parnmes 3.8 3.6 3.5 3.8 3.6 3.7 3.9 3.3 3.6 Total expenses.. 2.7 2.6 2.6 2.7 2.6 2.6 2.7 2.4 2.5 3.1 2 9 3.0 2.9 Net earnings __ 1.1 1.0 .9 1.1 1.0 1.1 1.2 .9 1.1 1.1 1.4 1.4 1.2 Net charge-offs, etc... .2 .2 .4 .4 .1 .1 .2 3.0 .1 .3 .2 .1 .2 Net profits _ .9 .8 .5 .7 .9 1.0 1.0 .9 1.0 .8 1.2 1.3 1.0 Loans 34.7 35.2 31.7 34.8 33.4 40.4 37.2 32.1 34.4 33.0 35.9 36.0 39.0 Securities _ _ 32.5 35.0 40.0 39.0 37.7 27.0 25.0 34.3 30.8 36.3 25.9 21.9 27.0 Real estate assets 3.2 2.9 3.8 5.3 3.3 3.7 3.6 2.2 3.0 2.9 2.1 2.8 3.0 Cash assets . 29.4 26.7 24.2 20.7 25.5 28.7 33.9 31.3 31.6 27.5 36.0 39.1 30.2 Total capital accounts 13.9 17.0 13.8 17.1 14.2 13.7 14.1 11.0 13.1 12.1 13.4 15. 5 12.2 Ratio to loans, sees., and real estate assets: Total capital accounts.._ 20.0 23.6 18.6 21.7 19.3 19.5 21.6 16.3 19.5 17.1 21.3 25.9 18.1 Ratios to total deposits: Total capital accounts 16.7 22.7 16.6 21.1 16.9 16.1 16.9 12.5 15.5 14.1 15.9 19.2 14.3 Time deposits.._ _._ 43.0 39.4 56.9 64.4 53.5 48.5 35.3 43.7 37.7 48.8 23.9 12.5 42.6 Ratio to time deposits: Interest on time deposits 1.6 1.4 1.4 1.8 1.8 1.9 1.8 1.4 1.8 1.7 1.7 1.4 1.7 Ratios to loans: Interest and discount on loans 6.2 5.2 5.4 5.5 5.7 5.8 6.5 5.4 6.0 6.2 7 5 8.3 6.5 Recoveries on loans .5 .3 .5 .1 .3 .3 .3 .5 .3 .7 .8 .9 .4 Charge-offs on loans-. .8 .8 .9 .8 .5 .5 .7 .6 .6 .9 1.0 1.1 .7 Net charge-offs on loans, _ .3 .5 .4 ' .7 .2 .2 .4 .1 .3 .2 .2 .2 .3 Net return on loans 5.9 4.7 5.0 4.8 5.5 5.6 6.1 5.3 5.7 6.0 7.3 8.1 6.2 Ratios to securities: Interest and dividends on securities 3.3 3.2 3.1 3.8 3.4 3.4 3.5 2.9 3.3 3.3 3.2 3.6 3.3 Recoveries on securities .4 .6 .4 .3 .4 .3 .4 .3 .4 .4 .3 .2 .3 Profits on securities sold 1.1 1.3 1.4 1.2 1.1 1.0 1.1 1.1 1.3 .7 .7 .9 .9 Charge-offs on securities 1.1 1.5 1.9 1.5 1.1 .8 .6 1.1 .9 1.1 .4 .4 .6 Net charge-offs on securities^ +.4 +.4 .1 3+.0 +.4 +.5 +.9 +.3 +.8 3.0 +.6 +.7 +•6 Net return on securities __ 3.7 3.6 3.0 3.8 3.8 3.9 4.4 3.2 4.1 3.3 3.8 4.3 3.9 Number of banks2 6,252 351 753 649 618 403 313 782 381 457 734 535 276 1 A plus indicates net recoveries, etc. 2 The ratios for 110 member banks in operation at the end of 1939 were excluded from the compilations because of mergers or reorganizations, unavailability of data covering the complete year's operations, certain accounting adjustments, lack of comparability, and other similar reasons. 3 Less than 0.05 per cent. NOTE.—These ratios, being arithmetic averages of the operating ratios of individual member banks, differ in many cases from corresponding ratios computed from aggregate dollar amounts. Such differences result from the fact that each bank's figures have an equal weight in calculation of the averages whereas the figures of the many small and medium-sized banks have but little influence on the aggregate amounts of all member The calculations of individual bank ratios were made at the Federal Reserve Banks. Figures of earnings, expenses, etc., used in the calculations were taken from the two semiannual earnings and dividends reports for 1939. Balance sheet figures used in the calculations were obtained by averaging the amounts shown in each bank's official condition reports submitted for the four call dates in 1939 (namely, March 29, June 30, October 2, and December 30), except that time deposits were averaged for the March, June, and December dates only, not being readily available for October 2. (Continued on following page.) 588 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MEMBER BANK OPERATING RATIOS, 1939, BY SIZE OF BANK AND BY RATIO OF TIME TO TOTAL DEPOSITS All Districts Combined [Averages of individual bank ratios expressed as percentages., Size group—total deposits(in thousands of dollars) R to a t t a io l d o e f p t o im sit e s d ( e p p e o r s c it e s n t t ) o All Item groups u a n 2 n 5 d d 0 er 2 5 5 0 0 0 - 1 5 , 0 0 0 0 - 0 1 2 , , 0 0 0 0 0 0 - 2 5 , , 0 0 0 0 0 0 - 5 10 ,0 ,0 0 0 0 0 - 1 5 0 0 , , 0 0 0 0 0 0 - 5 O 0, v 0 e 0 r 0 Un 2 d 5 er 25-50 50-75 o a 7 v n 5 e d r Ratios to total earnings: Interest and discount on loans 54.5 67.5 62.2 56.8 52.4 48.3 45.7 44.6 39.6 57.9 55.8 52.5 46.0 Interest and dividends on securities 29.8 18.4 23.9 29.1 33.0 34.7 33.4 32.5 36.3 23.6 26.5 34.3 45.7 Service charges 5.4 5.0 4.9 5.1 5.7 6.1 6.6 5.7 3.4 7.0 6.3 4.2 1.8 All other earnings _ _ ___ _ 10.3 9.1 9.0 9.0 8.9 10.9 14.3 17.2 20.7 11.5 11.4 9.0 6.5 Total earnings _ _ . 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Salaries and wages 29.2 34.4 30.8 28.2 27.8 27.7 29.4 30.7 31.3 35.1 30.3 25.6 21.8 Interest on time deposits _ 17.1 10.0 15.2 18.5 19.3 19.6 17.7 13.7 8.9 4.8 15.2 24.5 32.9 Real estate taxes 2.5 2.6 2.3 2.3 2.5 2.7 2.9 3.0 2.5 2.9 2.5 2.4 1.9 Other taxes 3.9 4.5 4.2 3.9 3.8 3.7 3.4 3.7 4.4 4.7 3.8 3.5 3.9 All other expenses.. _ _ 18.8 20.6 19.3 18.0 17.6 18.1 20.2 21.0 22.2 20.7 19.2 17.5 15.6 Total expenses 71.5 72.1 71.8 70.9 71.0 71.8 73.6 72.1 69.3 68.2 71.0 73.5 76.1 Net earnings 28.5 27.9 28.2 29.1 29.0 28.2 26.4 27.9 30.7 31.8 29.0 26.5 23.9 Net charge-offs, etc. _ _ _ _ 4.6 6.8 4.5 5.0 4.7 5.1 3.7 .5 2.8 2.4 3.9 6.7 5.1 Netprofits 23.9 21.1 23.7 24.1 24.3 23.1 22.7 27.4 27.9 29.4 25.1 19.8 18.8 Ratios to total capital accounts: Net earnings 8.6 7.1 8.7 9.2 9.0 8.4 8.1 8.2 7.4 9.2 9.3 8.0 6.2 Net charge-offs, etc. 1.6 1.9 1.6 1 7 1 6 1.7 1 3 4 1 0 9 1 5 2 1 1 3 Net profits. _ ___ __- __ 7.0 5.2 7.1 7.5 7.4 6.7 6.8 7.8 6.4 8.3 7.8 5.9 4.9 Cash dividends declared 2.9 3.0 3.2 3.0 2.8 2.6 2.4 2.9 3.8 4.0 3.0 2.2 2.0 Real estate assets 24.4 16.9 19.6 22.8 24.8 28.5 31.1 34.3 27.9 18.2 24.6 28.4 23.7 Ratios to total assets: Total earnings 3.8 4.9 4.4 4.0 3.7 3.5 3.2 2.8 2.3 3.8 3.8 3.8 3.7 Total expenses. _ _ _ _ _ _ 2.7 3.5 3.1 2.8 2.6 2.5 2.3 2.0 1.6 2.6 2.7 2.8 2.8 Net earnings _ _____ 1.1 1.4 1.3 1.2 1.1 1.0 .9 .8 .7 1.2 1.1 1.0 .9 Net charge-offs, etc. .2 .4 .2 .2 .2 .2 .2 .1 . 1 .1 .2 .3 .2 Netprofits.. .9 1.0 1.1 1.0 .9 .8 .7 .7 .6 1.1 .9 .7 .7 Loans 34.7 42.6 40.0 36.4 33.1 30.7 29.6 27.7 25.0 33.5 35.4 35.5 31.5 Securities 32.5 23.0 27.5 31.7 35.0 36.8 36.7 35.1 36.3 25.9 29.7 37.3 45.3. Real estate assets _ _ _ _ _ 3.2 3.4 2.9 3.0 3.1 3.5 3.6 3.6 2.7 2.5 3.1 3.7 3.6 Cash assets 29.4 30.9 29.4 28.6 28.7 28.7 29.7 33.1 35.3 38.0 31.6 23.4 19.5 Total capital accounts _ _ _ __ 13.9 21.3 15.7 13.8 13.0 12.5 11.5 10.2 9.7 14.9 13.1 13.7 15.2 Ratio to loans, sees., and real estate assets: Total capital accounts.-. _ _ _ 20.0 31.6 22.7 19.8 18.5 17.8 16.6 15.6 15.4 24.4 19.4 18.0 19.0 Ratios to total deposits : Total capital accounts 16.7 28.3 19.2 16.4 15.2 14.6 13.4 11.6 11.0 18.7 15.5 16.2 18.4 Time deposits .__ _ 43.0 28.3 38.6 45.2 47.8 49.6 45.4 33.5 20.6 12.2 37.9 61.9 80.3 Ratio to time deposits: Interest on time deposits 1.6 1.8 1.8 1.7 1.6 1.5 1.4 1.3 1.0 1.3 1.7 1.7 1.8 Ratios to loans: Interest and discount on loans __ - 6.2 8.0 7.0 6.4 6.0 5.6 5.1 4.6 3.6 6.8 6.2 5.7 5.6 Recoveries on loans .5 .7 .5 4 .4 .4 .4 .6 3 6 5 4 .2 Charge-offs on loans _ .8 1.1 .7 .7 .7 .8 .7 .8 .8 .8 .8 .7 .7 Net charge-offs on loans __ __ .3 .4 .2 .3 .3 .4 .3 .2 .5 .2 .3 .3 .5 Net return on loans 5.9 7.6 6.8 6.1 5.7 5.2 4.8 4.4 3.1 6.6 5.9 5.4 5.1 Ratios to securities: Interest and dividends on securities 3.3 3.7 3.6 3.5 3.3 3.2 2.8 2.5 2.2 3.2 3.2 3.4 3.7 Recoveries on securities .4 .2 .4 .3 .4 .4 .4 .5 .3 .3 .4 .4 .5 Profits on securities sold 1.1 .8 1.0 1.0 1.1 1.1 1.2 1.3 1.1 .9 1.1 1.1 1.2 Charge-offs on securities... - 1.1 .6 .9 1.1 1.1 1.2 1.1 1.2 .9 .6 .9 1.4 1.5 Net charge-offs on securities* _. +.4 +.4 +.5 +.2 +.4 +.3 +.5 +.6 +.5 +.6 +.6 +.1 +.2 Net return on securities 3.7 4.1 4.1 3.7 3.7 3.5 3.3 3.1 2.7 3.8 3.8 3.5 3.9 Number of banks2 6,252 462 1,087 1,491 1,308 1,042 416 326 120 1,507 2,066 2,329 350 (For footnotes see page 588.) (NOTE.—Continued from preceding page.) Savings deposits are included in the time deposits figures used in these tables. Banks with no time deposits (205 in number) are included in the group of banks having ratios of time to total deposits of less than 25 per cent. Average rates of interest on time deposits are probably understated somewhat; the amount of understatement is negligible except in the Boston and Dallas districts. Real estate assets are comprised of banking house and equipment, other real estate owned, and items indirectly representing bank premises or other real estate. Cash assets are comprised of cash, balances with other banks (including reserve balances), and cash items in process of collection. Total capital accounts are comprised of the aggregate book value of capital stock, capital notes and debentures, surplus, undivided profits, reserves for contingencies, and other capital reserves. JUNE 1940 589 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Member Bank Operating Ratios, 1939—Continued Boston Federal Reserve District [Averages of individual bank ratios expressed as percentages] Size group—total deposits (in thousands of dollars) R to a t t a i l o d o e f p t o i s m it e s d (p ep er o s c i e ts n t t ) o Item All groups u a n 2 n 5 d d 0 er 2 5 5 0 0 0 - 1 5 , 0 0 0 0 - 0 1 2 , , 0 0 0 0 0 0 - 2 5 , , 0 0 0 0 0 0 - 5 10 ,0 ,0 0 0 0 0 - 1 5 0 0 , , 0 0 0 0 0 0 - 5 O 0, v 0 e 0 r 0 Un 2 d 5 er 25-50 50-75 o a v 7 n 5 e d r Ratios to total earnings: Interest and discount on loans 50.7 62.0 52.5 55.0 48.3 50.2 48.7 45.8 42.6 48.9 49.4 53.8 46.5 Interest and dividends on securities 33.0 28.2 32.4 30.0 36.7 34.7 31.9 29.6 31.5 31.2 31.0 33.9 45.3 Service charges 6.5 6.6 6.9 7.0 7.1 6.4 6.2 5.6 3.7 7.4 8.9 4.8 2.6 All other earnings ._ 9.8 3.2 8.2 8.0 7.9 8.7 13.2 19.0 22.2 12.5 10.7 7.5 5.6 Total earnings _ . 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Salaries and wages 30.4 39.7 34.0 31.4 29.2 27.7 27.8 32.7 33.2 37.4 32.0 24.9 20.3 Interest on time deposits 16.0 1.8 10.3 13.3 18.6 20.9 20.0 11.7 4.8 1.7 14.7 26.2 32.5 Real estate taxes 2.6 1.1 2.6 2.4 2.4 2.7 3.3 3.3 2.8 2.6 3.1 2.5 1.5 Other taxes . 3.7 5.4 4.9 4.2 3.5 3.3 3.1 3.3 3.5 4.3 2.4 4.0 5.1 All other expenses.. _ ._ _ 20.3 21.8 23.6 20.4 20.3 18.3 19.1 21.5 23.7 23.2 21.1 18.0 15.9 Total expenses . 73.0 69.8 75.4 71.7 74.0 72.9 73.3 72.5 68.0 69.2 73.3 75.6 75.3 Net earnings 27.0 30.2 24.6 28.3 26.0 27.1 26.7 27.5 32.0 30.8 26.7 24.4 • 24.7 Net charge-offs, etc.i 4.9 6.7 4.0 9.4 .6 5.9 5.3 2.8 5.0 6.9 3.6 5.8 +4.8 Net profits 22.1 23.5 20.6 18.9 25.4 21.2 21.4 24.7 27.0 23.9 23.1 18.6 29.5 Ratios to total capital accounts: Net earnings ._ 6. 3 3.7 4.1 5.8 6.5 7.4 7.1 6.9 6.1 5.3 7.1 6.7 6.3 Net charge-offs, etc1 1.2 1.0 .7 1.9 .3 1.9 1.6 1.0 1.0 1.2 1.2 1.9 +1.6 Net profits 5.1 2.7 3.4 3.9 6.2 5.5 5.5 5.9 5.1 4.1 5.9 4.8 7.9 Cash dividends declared ._ . 2.4 1.9 1.7 2.1 2.4 2.5 2.6 3.3 3.4 Z.6 • 2.5 2.1 2.1 Real estate assets 20.3 5.4 14.4 16.7 19.7 22.3 26.3 29.0 24.0 14.9 25.2 22.4 14.0 Ratios to total assets: Total earnings 3.6 4.1 3.9 3.8 3.6 3.5 3.4 3.0 2.0 3.4 3.5 3.6 3.8 Total expenses 2.6 2.8 2.9 2.7 2.7 2.5 2.5 2.2 1.4 2.3 2.5 2.7 2.8 Net earnings 1 0 1.3 1.0 1.1 .9 1.0 .9 .8 .6 1.1 1.0 9 1.0 Net charge-offs, etc1 .2 .3 .2 .4 3.0 .2 .2 .1 .1 .3 .2 .2 +.3 Net profits .8 1.0 .8 .7 .9 .8 .7 .7 .5 .8 .8 .7 1.3 Loans 35.2 38.9 35.4 38.2 33.5 34.6 36.3 32.6 28.4 33.3 34.3 37.8 32 9 Securities ._ .. 35.0 31.3 34.0 31.1 38.0 36.1 35.9 35.9 31.4 31.6 34.4 36.6 45 4 Real estate assets _ 2.9 1.8 2.8 3.0 2.8 2.8 3.3 3.6 2.6 2.7 3.4 2.9 2 1 Cash assets 26.7 27. 27.6 27.6 25.6 26.4 24.3 27.5 37.0 32.2 27.7 22.5 19 4 Total capital accounts 17.0 37,4 24.9 20.0 15.0 13.6 13.2 12.4 10.3 23.0 14.1 14.1 15.4 Ratio to loans, sees., and real estate assets: Total capital accounts _ 23.6 51.8 35.0 28.2 20.6 18.9 17.8 17.5 16.8 33.7 19.9 18.4 19.3 Ratios to total deposits: Total capital accounts _ 22.7 79.0 36.5 26.4 18.1 16.1 15.5 14.5 11.6 35.4 16.8 16.9 18.6 Time deposits 39.4 5.9 27.9 34.0 46.3 49.8 46.9 30.3 12.3 5.4 38.5 62.3 79.6 Ratio to time deposits: Interest on time deposits 1.4 .2 .9 1.5 1.5 1.6 1.6 1.2 .9 .7 1.5 1.8 1.8 Ratios to loans: Interest and discount on loans 5.2 6.6 5.8 5.5 5.3 5.2 4.7 4.4 2.9 5.1 5.1 5.3 5.5 Recoveries on loans .. 3 .1 .3 .3 .2 .4 .4 .8 .2 .3 .5 2 .2 Charge-offs on loans .8 .6 .8 1.0 .7 .8 .7 .9 .8 1.0 .7 .6 .9 Net charge-offs on loans .5 .5 .5 .7 .5 .4 .3 .1 .6 .7 .2 .4 .7 Net return on loans. 4.7 6.1 5.3 Ratios to securities: Interest and dividends on securities. 3.2 3.5 3.6 3.6 3.3 3.2 2.9 2.6 2.0 3.2 3.2 3.3 3.5 Recoveries on securities _ . .6 .1 .4 .8 .6 .7 .6 .5 .2 .5 .8 .4 1.3 Profits on securities sold 1.3 .8 1.1 1.1 1.5 1.4 1.3 1.4 .8 1.0 1.6 1.3 1.1 Charge-offs on securities _ 1.5 1.7 1.1 1.7 1.4 1.6 1.6 1.5 .6 1.3 1.9 1.4 1.2 Net charge-offs on securities1.. +.4 .8 +.4 +.2 +.7 +.5 +.3 +.4 +.4 +.2 +.5 +.3 +1.2 Net return on securities 3.6 2.7 4.0 3.8 4.0 3.7 3.2 3.0 2.4 3.4 3.7 3.6 4.7 Number of banks? _ ... 351 14 37 62 76 85 41 28 8 109 93 126 23 (For footnotes see page 588.) 590 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Member Bank Operating Ratios, 1939—Continued New York Federal Reserve District [Averages of individual bank ratios expressed as percentages] Size group—totaldeposits (in thousands of dollars) Ratio of time deposits to total deposits (per cent) All Item groups u a n 2 n 5 d d 0 er 2 5 5 0 0 0 - 1 5 ,0 0 0 0 0 - 1 2 , , 0 0 0 0 0 0 - 2 5 , , 0 0 0 0 0 0 - 5 10 ,0 ,0 0 0 0 0 - 1 5 0 0 , , 0 0 0 0 0 0 - 5 O 0, v 0 e 0 r 0 Un 2 d 5 er 25-50 50-75 o a v 7 n e 5 d r Ratios to total earnings: Interest and discount on loans ___ 47.3 54.1 55.4 51.5 47.4 44.4 44.0 41.6 34.8 38.4 47.5 48.9 39.6 Interest and dividends on securities 36.5 34.5 33.7 35.4 39.1 37.5 36.2 33.4 34.5 36.8 31.9 36.2 50.6 Service charges 6.3 5.4 5.2 6.3 6.0 7.2 7.6 6.2 3.2 6.4 8.9 6.0 3 0 All other earnings __ 9.9 6.0 5.7 6.8 7.5 10.9 12.2 18.8 27.5 18.4 11.7 8.9 6.8 Total earnings 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Salaries and wages 28.6 32.7 30.8 28.5 27.2 27.6 29.3 29.7 33.6 38.3 31.8 27.3 24.9 Interest on time deposits 19.8 18.2 19.7 19.6 21.9 21.2 19.9 16.0 5.0 2.3 14.6 21.6 30.4 Real estate taxes. 3.2 2.0 2.3 2.6 3.0 3.8 3.4 4.6 3.7 2.2 3.6 3.2 3.2 Other taxes 2.1 1.6 2.0 2.3 2.3 1.8 1.9 2.4 3.0 3.2 1.8 2.1 2 2 All other expenses 20.6 22.9 21.7 20.4 19.1 20.4 20.7 22.2 25.0 25.0 23.5 19.9 16.6 Total expenses 74.3 77.4 76.5 73.4 73.5 74.8 75.2 74.9 70.3 71.0 75.3 74.1 77.3 Net earnings 25.7 22.6 23.5 26.6 26:5 25.2 24.8 25.1 29.7 29.0 24.7 25.9 22.7 Net charge-offs, etc 9.7 10.4 11.5 9.6 10.5 11.4 7.0 3.8 5.8 2.5 7.8 11.5 3.4 Net profits 16.0 12.2 12.0 17.0 16.0 13.8 17.8 21.3 23.9 26.5 16.9 14.4 19.3 Ratios to total capital accounts: Net earnings _ ___ _ __ 7.1 4.6 5.6 7.1 7.7 7.4 7.6 7.1 6.2 5.2 7.0 7.5 5.8 Net charge-offs, etc 3.1 2.7 3.4 2.8 3.5 3.8 2.5 1.6 1.6 .5 2.6 3.7 1.1 Net profits 4.0 1.9 2.2 4.3 4.2 3.6 5.1 5.5 4.6 4.7 4.4 3.8 4.7 Cash dividends declared 1.9 1.0 1.3 1.7 1.9 1.9 2.1 2.1 4.0 3.0 1.7 1.8 2.1 Real estate assets 30.6 18.1 18.4 23.8 31.7 35.7 31.9 51.5 29.9 15.2 33.6 32.0 24.5 Ratios to total assets: Total earnings 3.5 4.1 4.0 3.7 3.5 3.4 3.4 3.1 2.2 2.7 3.4 3.6 3.3 Total expenses 2.6 3.2 3.0 2.7 2.5 2.5 2.5 2.3 1.6 1.9 2.5 2.7 2.5 Net earnings ._.___ _ 9 .9 1.0 1.0 1.0 .9 .9 .8 .6 .8 .9 9 .8 Net charge-offs, etc __. .4 .5 .5 .4 .4 .4 .3 .1 .2 .1 .3 .4 .2 Net profits __ _ .5 .4 .5 .6 .6 .5 .6 .7 .4 .7 .6 .5 ,6 Loans 31.7 37.7 38.7 34.5 30.8 29.5 29.3 28.8 24.4 26.3 31.9 32.9 24.6 Securities 40.0 35.9 35.5 37.9 41.2 42.5 42.2 40.9 36.9 37.0 35.6 40.2 51.7 Real estate assets ______ 3.8 3.5 3.0 3.4 3.8 4.2 3.6 5.2 2.9 1.9 4.3 3.9 2.9 Cash assets 24.2 22.8 22.8 24.0 24.1 23.5 24.2 24.5 35.0 34.0 27.8 22.8 20.6 Total capital accounts 13.8 21.7 17.7 15.5 13.4 12.6 12.0 11.1 10.4 16.3 13.6 13.7 13.7 Ratio to loans, sees., and real estate assets: Total capital accounts __ 18.6 28.9 23.2 20.8 17.8 16.7 16.3 14.9 16.7 25.0 19.2 17.9 17.4 Ratios to total deposits: Total capital accounts 16.6 29.0 22.2 18.9 15.8 14.6 13.9 12.7 11.9 21.6 16.2 16.2 16.1 Time deposits ____ 56.9 51.6 57.0 57.1 63.1 60.7 55.2 46.9 15.3 8.1 41.8 62.9 79.3 Ratio to time deposits: Interest on time deposits 1.4 1.7 1.6 1.4 1.4 1.3 1.3 1.1 .7 .6 1.4 1.4 1.5 Ratios to loans: Interest and discount on loans 5.4 6.0 5.9 5.8 5.7 5.3 5.2 4.4 3.0 3.9 5.3 5.5 5.5 Recoveries on loans .5 .1 .5 .4 .4 .5 .5 .7 .3 .4 .5 .5 .6 Charge-offs on loans.. ._ _ .9 .8 .8 .7 .8. 1.1 .9 1.1 .9 .7 .9 .9 .9 Net charge-offs on loans. .__ .4 .7 .3 .3 .4 .6 .4 .4 .6 .3 .4 .4 .3 Net return on loans 5.0 5.3 5.6 5.5 5.3 4.7 4.8 4.0 2.4 3.6 4.9 5.1 5.2 Ratios to securities: Interest and dividends on securities 3.1 3.9 3.7 3.4 3.2 2.9 2.8 2.4 1.9 2.6 3.0 3.2 3.3 Recoveries on securities .4 .3 .4 .4 .5 .4 .6 .5 .4 .4 .4 .4 .6 Profits on securities sold 1.4 1.0 1.2 1.4 1.4 1.5 1.4 1.7 1.2 1.3 1.7 1.3 1.1 Charge-offs on securities 1.9 1.6 2.5 2.2 1.9 1.7 1.8 1.6 1.3 1.5 1.9 2.0 1.6 Net charge-offs on securities^ .1 .3 .9 .4 3.0 +.2 +.2 +.6 +.3 +.2 +.2 .3 +.1 Net return on securities 3.0 3.6 2.8 3.0 3.2 3.1 3.0 3.0 2.2 2.8 3.2 2.9 3.4 Number of banks2 __ 753 19 74 152 179 179 75 47 28 50 128 521 54 (For footnotes see page 588.) JUNE 1940 591 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Member Bank Operating Ratios, 1939—Continued Philadelphia Federal Reserve District [Averages of individual bank ratios expressed as percentages] Size group—total deposits (in thousands of dollars) R to a t t a i l o d o e f p t o i s m it e s d (p e e p r o s c i e ts n t t ) o Item All groups u a n 2 n 5 d d 0 er 2 5 5 0 0- 0 1 5 , 0 0 0 0 - 0 1 2 , , 0 0 0 0 0 0 - 2 5 , , 0 0 0 0 0 0 - 5 10 , , 0 0 0 0 0 0 - 1 5 0 0 , , 0 0 0 0 0 0 - 5 O 0, v 0 e 0 r 0 Un 2 d 5 er 25-50 50-75 o a v 7 n 5 e d r Ratios to total earnings: Interest and discount on loans _ 49.4 60.9 56.0 52.2 48.2 46.0 42.8 39.8 33.1 39.4 47.0 51.7 46.3 Interest and dividends on securities 39.5 31.7 37.0 39.0 41.6 41.1 37.7 37.3 41.3 37.0 34.1 37.7 46.4 Service charges 2.6 2.6 2.0 2.3 2.7 3.1 3.0 2.9 1.6 5.1 5.2 2.5 1.3 All other earnings _ _ 8.5 4.8 5.0 6.5 7.5 9.8 16.5 20.0 24.0 18.5 13.7 8.1 6.0 Total earnings 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Salaries and wages 22.9 28.7 23.7 22.6 21.9 21.5 24.1 27.8 29.1 33.2 27.8 22.7 20.0 Interest on time deposits _ _ 25.2 24.9 26.5 27.0 25.9 25.6 20.7 16.2 5.9 5.3 15.0 24.9 32.8 Real estate taxes 2.2 1.2 1.6 2.0 2.2 2.5 3.4 3.9 1.9 2.4 2.8 2.2 1.9 Other taxes 4.3 4.7 4.4 3 9 4.0 4.8 4.7 3.8 5.4 5.9 4.4 4.2 4.3 All other expenses.. ... 17.1 19.7 18.2 17! 8 16.4 15.7 16.7 17.6 20.2 21.3 18.9 17.4 15.1 Total expenses . 71.7 79.2 74.4 73.3 70.4 70.1 69.6 69.3 62.5 68.1 68.9 71.4 74.1 Net earnings.- _ _ _ 28.3 20.8 25.6 26.7 29.6 29.9 30.4 30.7 37.5 31.9 31.1 28.6 25.9 Net charge-offs, etc. _ . _ 10.6 4.5 9.1 11.0 11.5 10.0 14.4 9.0 15.2 8.4 9.9 11.5 9.1 Net profits _ _ 17.7 16.3 16.5 15.7 18.1 19.9 16.0 21.7 22.3 23.5 21.2 17.1 16.8 Ratios to total capital accounts: Net earnings 6.7 4.3 5.8 6.7 7.1 7.0 7.1 7.0 7.9 6.5 7.8 6.8 6.1 Net charge-offs, etc. __ 2.6 .9 2.2 2.8 2.9 2.4 3.2 2.4 3.2 2.0 2.4 2.9 2.3 Net profits __ .__ _ 4.1 3.4 3. 6 3.9 4.2 4.6 3.9 4.6 4.7 4.5 5.4 3.9 3.8 Cash dividends declared 1.9 1.0 1.3 1.5 1.9 2.4 2.3 2.6 5.1 3.5 1.9 1.8 1.9 Real estate assets ... _ _'_ _ _ 32.4 26.0 25.1 32.1 31.5 31.9 48.6 49.9 34.5 26.0 40.0 32.9 28.3 Ratios to total assets: Total earnings 3.8 4.1 4.0 3.9 3.8 3.7 3. 6 3.0 2.8 2.8 3.7 3.9 3.9 Total expenses _ _ _ _ 2.7 3.2 3.0 2.9 2.7 2.6 2.5 2.1 1.8 1.9 2.5 2.8 2.9 Net earnings... __ 1.1 .9 1.0 1.0 1.1 1.1 1.1 .9 1.0 .9 1.2 1.1 1.0 Net charge-offs, etc _ .4 .2 .4 .4 .5 .4 .5 .3 .4 .3 .4 .5 .4 Net profits. ___ ___. .7 .7 .6 .6 .6 .7 .6 .6 .6 .6 .8 .6 .6 Loans 34.8 42.8 39.5 37.0 34.0 32.0 31.1 26.7 23.0 25.7 32.4 36.6 32.8 Securities _ ___ _ __ 39.0 32.2 36.2 38.2 40.4 41.0 39.3 38.9 40.1 34.6 34.1 37.8 44.5 Real estate assets 5.3 5.5 4.6 5.3 5.1 5.2 7.4 6.8 4.9 4.0 6.2 5.4 4.7 Cash assets 20.7 19.4 19.6 19.4 20.4 21.6 21.6 27.0 31.1 34.9 26.8 20.0 17.9 Total capital accounts 17.1 21.9 18.6 16.9 16.8 17.0 16.1 14.0 13.2 14.9 16.1 17.4 17.1 Ratio to loans, sees., and real estate assets: Total capital accounts--. 21.7 27.4 23.3 21.0 21.2 21.8 20.7 19.5 19.5 23.0 22.4 21.8 20.9 Ratios to total deposits: Total capital accounts _____ _ _ 21.1 28.5 23.2 20.7 20.5 20.9 19.5 16.6 15.6 18.2 19.9 21.5 20.9 Time deposits _ _ _. 64.4 63.1 65.7 67.8 67.8 64.5 58.3 42.9 18.5 14.5 42.2 64.3 80.9 Ratio to time deposits: Interest on time deposits _ _ _ _ - 1.8 2.0 1.9 1.9 1.7 1.7 1.5 1.3 1.0 1.1 1.5 1.8 1.9 Ratios to loans: Interest and discount on loans _ _ _ _ 5.5 5.9 5.7 5.6 5.5 5.5 5.0 4.5 3.7 4.2 5.3 5.5 5.5 Recoveries on loans . 1 2 . 1 . 1 . 1 1 2 2 3 2 1 1 ] Charge-offs on loans . _ . . __ .8 .4 .5 .6 .8 .8 1.1 1.4 2.0 1.2 .8 .7 .7 Net charge-offs on loans___ - .7 .2 .4 .5 .7 .7 .9 1.2 1.7 1.0 .7 .6 .6 Net return on loans .____ _ __ 4.8 5.7 5.3 5. 1 4.8 4.8 4.1 3.3 2.0 3.2 4.6 4.9 4.9 Ratios to securities: Interest and dividends on securities 3.8 3.9 4.0 3.9 3.9 3.6 3.4 2.9 2.8 2.8 3.5 3.8 3.9 Recoveries on securities .3 .2 .3 .4 .3 .3 .3 .3 .6 .3 .3 .3 .4 Profits on securities sold 1.2 1.4 1.3 1. 1 1.3 1.2 1.2 1.2 1.1 1.2 1.5 1.1 1.2 Charge-offs on securities.__ 1.5 1.4 1.7 1.6 1.6 1.4 1.2 1.1 1.1 1.1 1.4 1.5 1.5 Net charge-offs on securities* '_ _3+-0 +.2 .1 .1 3+.0 +.1 +.3 +.4 +.6 +.4 +.4 .1 +.1 Net return on securities _ 3.8 4.1 3 9 3.8 3.9 3.7 3.7 3.3 3.4 3.2 3.9 3.7 4.0 Number of banks2 649 22 97 157 160 139 41 23 10 20 75 389 165 (For footnotes see page 588.) 592 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Member Bank Operating Ratios, 1939—Continued Cleveland Federal Reserve District [Averages of individual bank ratios expressed as percentages] Size group—total deposits (in thousands of dollars) Ratio of time deposits to total deposits (per cent) Item gr A ou ll ps u a n 2 n 5 d d 0 er 2 5 5 0 0 0 - 1 5 , 0 0 0 0 - 0 1 2 , , 0 0 0 0 0 0- 2 5 , , 0 0 0 0 0 0 - 1 5 0 , , 0 0 0 0 0 0 - 1 5 0 0 , ,0 0 0 0 0 0- 5 O 0, v 0 e 0 r 0 Un 2 d 5 er 25-50 50-75 o a v 7 n e 5 d r Ratios to total earnings: Interest and discount on loans ___ .__ _ 51.7 61.3 56.9 55.9 50.8 48.6 43.2 45.7 33.4 52.7 51.8 52.1 45.9 Interest and dividends on securities 36.0 28.4 34.0 34.5 37.8 37.2 38.5 34.9 42.7 32.9 33.7 36.4 47.2 Service charges _____ __. 3.7 3.9 2.8 3.1 4.0 4.3 4.3 4.4 3.3 4.4 4.6 3.4 1.7 All other earnings _ __ _ 8.6 6.4 6.3 6.5 7.4 9.9 14.0 15.0 20.6 10.0 9.9 8.1 5.2 Total earnings 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Salaries and wages.. _ __ 25.3 28.2 26.5 23.9 25.2 25.0 25.4 28.9 26.5 32.4 27.9 23.6 21.7 Interest on time deposits 23.1 17.6 21.6 25.2 23.6 24.4 22.5 17.6 13.1 5.4 17.0 26.9 35.1 Real estate taxes 1.8 1.0 1.3 1.7 2.0 1.9 2.6 2.3 2.4 1.9 1.7 1.9 1.4 Other taxes _ _ _ __ _ __ 5.2 5.6 5.0 5.0 5.0 5.3 5.1 5.8 6.3 6.8 5.7 4.8 4.8 All other expenses. _ _ _ _ _ _ 16.3 18.5 17.0 15.2 15.8 16.3 17.9 16.5 20.5 19.8 17.2 15.7 14.3 Total expenses _ 71.7 70.9 71.4 71.0 71.6 72.9 73.5 71.1 68.8 66.3 69.5 72.9 77.3 Net earnings 28.3 29.1 28.6 29.0 28.4 27.1 26.5 28.9 31.2 33.7 30.5 27.1 22.7 Net charge-offs, etc.* _ _ 3.4 7.5 2.4 2.1 3.1 5.7 2.9 3.2 +.3 +.1 2.1 4.8 +1.0 Net profits _ _ 24.9 21.6 26.2 26.9 25.3 21A 23.6 25.7 31.5 33.8 28.4 22.3 23.7 Ratios to total capital accounts: Net earnings _ _ _ _ 7.7 6.1 7.1 8.5 7.8 7.7 7.3 7.5 6.5 6.4 8.0 7.8 6.5 Net charge-offs, etc. _ 1.0 2.1 .7 .8 .9 1.7 1.1 .8 .2 .3 .6 1.4 3.0 Net profits _._ _ 6.7 4.0 6.4 7.7 6.9 6.0 6.2 6.7 6.3 6.1 7.4 6.4 6.5 Cash dividends declared 2.1 1.2 1.8 2.3 2.2 2.0 2.1 2.2 2.9 2.6 2.6 1.9 1.6 Real estate assets __ __ 24.6 12.4 18.0 22.6 22.4 29.7 36.2 32.1 33.4 16.2 22.0 27.4 19.2 Ratios to total assets: Total earnings _ 3.6 4.4 3.9 3.8 3. 6 3.5 3.4 3.1 2.4 3.1 3.5 3.7 3.9 Total expenses 2.6 3.1 2.8 2.7 2.6 2.5 2.5 2.2 1.7 2.0 2.4 2.7 3.0 Net earnings 1.0 1.3 1.1 1.1 1.0 1.0 .9 .9 .7 1.1 1.1 1.0 9 Net charge-ofls, etc. __ .1 .4 .1 . 1 .1 .2 .1 .1 3 .0 3.0 .1 .2 3.0 Net profits. _ ___ _ .9 .9 1.0 1.0 .9 .8 .8 .8 .7 1.1 1.0 .8 .9 Loans _ _ 33.4 45.3 38.5 36.6 32.0 29.8 27.5 28.9 21.2 31.2 32.6 34.1 31.5 Securities 37.7 31.3 34.4 35.9 39.1 40.1 41.5 36.8 40.4 . 32. 6 36.0 38.4 44.7 Real estate assets 3.3 2.5 2.9 3.1 3.0 3.7 4.7 4.2 3.4 2.5 3.0 3.6 2.7 Cash assets _ 25.5 20.8 24.1 24.4 25.8 26.1 26.1 29.6 34.6 33.6 28.2 23.8 21.0 Total capital accounts ._ 14.2 22.2 17.0 13.9 13.6 12.9 13.0 12.9 11.6 17.4 14.4 13.7 14.2 Ratio to loans, sees., and real estate assets: Total capital accounts 19.3 28.1 23.0 18.6 18.6 17.8 17.7 18.5 17.8 26.6 20.3 18.1 18.1 Ratios to total deposits: Total capital accounts __ __ 16.9 29.4 21.0 16.4 16.0 15.0 15.2 15.1 13.5 21.8 17.3 16.1 16.9 Time deposits.. 53.5 50.8 51.9 57.6 52.9 56.1 52.9 41.2 28.5 12.0 40.2 62.0 79.1 Ratio to time deposits: Interest on time deposits 1.8 1.9 1.8 1.9 1.8 1.7 1.6 1.5 1.3 1.2 1.7 1.9 2.0 Ratios to loans: Interest and discount on loans __ _ 5.7 6.0 5.8 6.0 5.7 5.8 5.4 4.9 3.8 5.2 5.6 5.8 5.8 Recoveries on loans 3 .2 2 3 .4 .4 3 5 3 3 3 3 .6 Charge-offs on loans.. _ .5 .6 .3 .5 .6 .8 .7 .7 .5 .3 .5 .6 .8 Net charge-offs on loans .2 .4 .1 .2 .2 .4 .4 .2 .2 3.0 .2 .3 .2 Net return on loans 5.5 5.6 5.7 5.8 5.5 5.4 5.0 4.7 3.6 5.2 5.4 5.5 5.6 Ratios to securities: Interest and dividends on securities 3.4 4.0 3.7 3.6 3.4 3.3 3.1 2.8 2.4 3.0 3.3 3.5 3.8 Recoveries on securities .4 .1 .5 .3 .3 .7 .2 .6 .1 .4 .6 .3 .4 Profits on securities sold 1. 1 1.0 1.2 1.2 1.0 1.1 1.1 .9 1.1 1.2 1.0 1.0 1.7 Charge-offs on securities 1.1 1.6 1.3 1.1 .9 1.0 .9 1.0 .7 1.1 1.0 1.0 1.7 Net charge-offs on securities* +.4 .5 +.4 +.4 +.4 +.8 +.4 +.5 +.5 +.5 +.6 +.3 +.4 Net return on securities __ 3.8 3.5 4.1 4.0 3.8 4.1 3.5 3.3 2.9 3.5 3.9 3.8 4.2 Number of banks2 _ 618 22 78 160 149 124 42 29 14 37 185 361 35 (For footnotes see page 588.) JUNE 1940 593 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Member Bank Operating Ratios, 1939—Continued Richmond Federal Reserve District [Averages of individual bank ratios expressed as percentages] Ratio of time deposits to Size group—totaldeposits (in thousands of dollars) total deposits (per cent) Item All groups u a n 2 n 5 d d 0 er 2 5 5 0 0 0 - 1 5 ,0 0 0 0 0 - 1 2 , , 0 0 0 0 0 0 - 2 5 , , 0 0 0 0 0 0 - 5 1 , 0 0 ,0 0 0 0 0 - 1 5 0 0 , , 0 0 0 0 0 0 - 5 O 0, v 0 e 0 r 0 Un 2 d 5 er 25-50 50-75 o a 7 v n 5 e d r Ratios to total earnings: I I n n t t e e r r e e s s t t a a n n d d d d i i v sc id o e u n n d t s o o n n lo s a e n c s urities 6 25 1 . 4 9 6 25 7 . . 0 7 6 2 7 3 . . 0 2 2 6 6 2 . . 2 7 6 25 3 . . 5 1 6 2 2 3 . . 6 2 2 5 6 7 . . 3 3 4 2 9 7. . 6 2 4 3 5 4 . . 2 2 2 5 8 0. . 0 5 2 5 4 9 . . 7 8 2 6 4 6 . . 9 1 6 3 3 1 . . 2 1 Service charges __ _ . 4.1 2.2 3.3 3.9 3.9 4.9 5.0 5.5 2.9 6.0 5.4 2.9 .7 All other earnings 8.6 5.1 6.5 7.2 7.5 9.3 11.4 17.7 17.7 15.5 10.1 6.1 5.0 Total earnings 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Salaries and wages 26.1 28.0 25.5 25.0 24.2 26.9 29.3 32.3 28.5 33.6 27.7 23.5 22.4 Interest on time deposits 22.4 20.0 23.7 24.3 25.2 20.4 20.9 13.1 9.4 7.3 18.1 28.1 37.1 Real estate taxes 1.9 2.4 1.4 1.6 2.0 1.8 2.5 2.5 1.7 2.3 2.2 1.6 1.1 Other taxes 4.1 3.1 4.2 3.7 3.9 4.4 5.0 4.3 4.3 4.5 3.8 4.1 5.4 All other expenses 16.7 19.2 18.4 16.0 14.9 16.6 17.8 20.4 20.8 20.8 17.7 15.2 14.7 Total expenses 71.2 72.7 73.2 70.6 70.2 70.1 75.5 72.6 64.7 68.5 69.5 72.5 80.7 Net earnings 28 8 27.3 26 8 29.4 29.8 29.9 24.5 27.4 35.3 31.5 30.5 27.5 19.3 Net charge-offs, etc.*. --- 2.1 .3 1.7 3.3 3.4 .1 +•8 +.7 13.0 1.4 1.2 2.8 2.3 Netprofits.._ _ 26.7 27.0 25.1 26.1 26.4 29.8 25.3 28.1 22.3 30.1 29.3 24.7 17.0 Ratios to total capital accounts: Net earnings 8.3 5.6 7.7 8.8 8.7 8.6 6.9 7.7 9.5 8.4 8.5 8.3 5.3 Net charge-offs, etc.* .__ .7 3.0 .7 1.2 1.0 .3 3.0 +.1 3.7 .7 .5 .9 .8 Net profits 7.6 5.6 7.0 7.6 7.7 8.3 6.9 7.8 5.8 7.7 8.0 7.4 4.5 Cash dividends declared 2.8 1.7 2.1 2.7 2.9 3.1 2.9 3.5 4.6 3.3 2.9 2.7 2.0 Real estate assets " 28.0 20.9 23.5 28.6 29.0 26.2 31.4 36.0 33.0 23.3 29.1 28.6 21.1 Ratios to total assets: Total earnings 3.7 4.1 4.1 4.0 3.8 3.6 3.1 2.8 2.1 2.8 3.7 4.0 3.8 Total expenses 2.6 3.0 3.0 2.8 2.6 2.5 2.3 2.0 1.4 1.9 2.5 2.9 2.9 Net earnings 1.1 1.1 1.1 1.2 1.2 1.1 .8 .8 .7 .9 1.2 1.1 .9 Net charge-offs, etc.1- .1 3.0 .1 .1 .2 3.0 3+.0 3.0 .2 3.0 .1 .1 .1 Net profits __ 1.0 1.1 1.0 1.1 1.0 1.1 .8 .8 .5 .9 1.1 1.0 .8 Loans 40.4 44.7 44.4 42.4 40.8 40.6 34.6 29.2 21.0 29.6 37.8 44.8 41.2 Securities 27.0 27.6 25.6 27.6 27.2 24.1 29.2 28.9 40.9 27.0 26.1 27.4 30.9 Real estate assets 3.7 4.3 3.5 3.8 3.9 3.4 3.7 4.2 2.8 2.6 4.0 3.8 3.4 Cash assets 28.7 23.3 26.4 26.1 28.0 31.4 32.1 37.3 34.9 40.6 31.9 23.8 24.4 Total capital accounts 13.7 20.5 15.3 14.0 13.4 13.2 12.2 10.6 8.2 11.4 14.0 13.8 15.7 Ratio to loans, sees., and real estate assets: Total capital accounts 19.5 26.8 20.9 19.4 19.0 19.5 18.6 17.2 12.7 19.9 20.6 18.3 21.5 Ratios to total deposits: Total capital accounts 16.1 26.6 18.2 16.5 15.8 15.5 14.2 12.1 9.1 13.2 16.5 16.3 19.5 Time deposits 48.5 49.5 52.4 53.6 53.0 44.2 42.6 28.7 18.8 16.6 39.2 60.7 81.8 Ratio to time deposits: Interest on time deposits 1.9 2.1 2.1 2.1 2.0 1.8 1.6 1.4 1.3 1.3 1.9 2.1 2.0 Ratios to loans: Interest and discount on loans 5.8 6.4 6.3 6.0 5.9 5.6 5.2 4.6 3.5 4.8 5.9 6.0 5.9 Recoveries on loans _. .3 .5 .1 .3 .2 .3 .4 .2 .2 .3 .3 .2 .1 Charge-offs on loans .5 . 7 .4 .4 .5 .5 .8 .5 .3 .3 .4 .5 .6 Net charge-offs on loans. .2 .2 .3 .1 .3 .2 .4 .3 .1 3.0 .1 .3 .5 Net return on loans 5.6 6.2 6.0 5.9 5.6 5.4 4.8 4.3 3.4 4.8 5.8 5.7 5.4 Ratios to securities: Interest and dividends on securities 3.4 3.5 3.7 3.7 3.4 3.3 2.6 2.5 2.3 2.9 3.3 3.5 3.8 Recoveries on securities .3 .2 .3 .2 .3 .3 .2 .5 .4 .4 .2 .3 .3 Profits on securities sold 1.0 .8 1.0 .9 1.1 1.1 1.4 1.2 .9 .9 1.1 1.0 1.0 Charge-offs on securities .8 .2 .6 .6 1.0 .7 .7 .9 1.4 .7 .8 .7 .6 Net charge-offs on securities* +.5 +.8 +.7 +.5 +.4 +.7 +.9 +.8 .1 +.6 +.5 +.6 +.7 Net return on securi' es 3.9 4.3 4.4 4.2 3.8 4.0 3.5 3.3 2.2 3.5 3.8 4.1 4.5 Number of banks2 403 12 61 98 99 75 26 25 7 44 152 193 14 (For footnotes see page 588.) 594 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Member Bank Operating Ratios, 1989—Continued Atlanta Federal Reserve District [Averages of individual bank ratios expressed as percentages] Size group—totaldeposits (in thousands of dollars) Ratio of time deposits to total deposits (per cent) All Item groups u a n 2 n 5 d d 0 er 2 5 5 0 0 0 - 1 5 ,0 0 0 0 0 - 1 2 , , 0 0 0 0 0 0 - 2 5 , , 0 0 0 0 0 0 - 1 5 0 ,0 ,0 0 0 0 0 - 5 1 0 0 , , 0 0 0 0 0 0- 50 O ,0 v 0 e 0 r* Un 25 der 25-50 50-75 o a v 7 n e 5 d r Ratios to total earnings: Interest and discount on loans 60.3 71.3 70.8 65.4 58.4 54.9 50.8 40.4 50.8 53.0 62.3 64.8 Interest and dividends on securities- 23.6 16.9 16.9 20.5 26.2 27.3 25.9 34.6 27.8 26.2 22.3 24.7 Service charges 4.9 3.7 3.0 4.6 5.2 6.5 6.2 5.3 4.4 6.7 4.5 3.2 All other earnings 11.2 8.1 9.3 9.5 10.2 11.3 17.1 19.7 17.0 14.1 10.9 7.3 Total earnings... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Salaries and wages 29.6 30.6 31.2 27.2 30.1 30.4 30.0 27.4 31.0 33.2 29.0 25.5 Interest on time deposits _. __ _ 14.7 11.3 14.6 15.9 16.5 14.9 12.5 11.2 9.4 6.6 15.9 24.1 Real estate taxes ... --. 3.1 3.5 3.2 2.7 3.6 3.2 2.6 2.9 2.3 2.8 3.1 3.8 Other taxes 3.7 3.6 5.0 3.5 3.3 2.9 4.0 2.9 5.5 4.5 3 5 2 8 All other expenses 19.1 17.4 19.2 17.6 18.6 18.7 21.6 22.2 25.5 21.3 18.8 16.4 Total expenses..., 70.2 66.4 73.2 66.9 72.1 70.1 70.7 66.6 73.7 68.4 70.3 72.6 Net earnings 29.8 33.6 26.8 33.1 27.9 29.9 29.3 33.4 26.3 31 6 29 7 27 4 Net charge-offs, etc. 1 2.9 14.8 2.9 4.0 1.6 3.7 +.3 +2.0 +3.1 3.0 3.7 4.9 Net profits 26.9 18.8 23.9 29.1 26.3 26.2 29.6 35.4 29.4 31.6 26.0 22.5 Ratios to total capital accounts: N N e e t t c e h a a rn rg in e- g o s ffs, etc. * 9 1 . . 0 0 8 3 . . 0 1 7 . . 9 6 1 1 1 . . 5 0 8 . . 9 3 9 1 . . 2 1 + 9 . . 1 3 1 + 0 . . 2 6 + 7 . . 5 0 8 . . 1 7 9 1 . . 2 2 8 1 . . 9 7 Net profits .. 8.0 4.9 6.7 9.5 7.4 8.1 9.4 10.8 7.5 8.6 8.0 7.2 Cash dividends declared 3.4 2.8 3.5 3.9 3.2 3.2 2.6 3.4 3.4 3.1 3.6 3.1 Real estate assets. 27.2 20.1 23.4 24.3 28.1 31.5 25.3 39.7 27.1 19.9 28.5 34.9 Ratios to total assets: Total earnings 3.9 4.9 4.5 4.5 3.8 3.6 3.2 2.9 2.3 3.4 4.0 4.4 Total expenses 2.7 3.2 3.3 3.0 2.7 2.5 2.2 1.9 1.6 2.3 2.8 3.2 Net earnings 1.2 1.7 1.2 1.5 1.1 1.1 1.0 1.0 .7 1.1 1.2 1.2 Net charge-offs, etc.1 .2 .8 .1 .2 .1 .2 3.0 3+.0 3+.0 3.0 .2 .2 Net profits 1.0 .9 1.1 1.3 1.0 .9 1.0 1.0 .7 1.1 1.0 1.0 Loans ._ .. 37.2 44.4 43.6 41.6 35.3 33.3 30.8 25.4 30.9 30.6 39.0 41.6 Securities 25.0 19.2 19.2 23.2 27.4 27.5 26 7 33.7 27.8 26 7 23.8 26.8 Real estate assets 3.6 5.0 3.6 3.2 3.7 3.6 2.8 3.7 2.6 2.4 3.8 4.6 Cash assets ... __ 33.9 31.3 33.4 31.8 33.4 35.1 39.3 36.1 38.2 40.0 33.0 26.8 Total capital accounts 14.1 24.0 16.8 14.2 13.8 12.0 10.7 9.2 9.2 13.5 14.3 14.2 Ratio to loans, sees., and real estate assets: Total capital accounts 21.6 35.6 25.9 21.3 21.0 18.8 17.8 14.8 14.9 22.8 21.5 19.7 Ratios to total deposits: Total capital accounts 16.9 34.1 20.6 16.9 16.3 13.9 12.1 10.3 10.3 16.1 17.3 16.9 Time deposits 35.3 33.5 36.6 40.0 37.8 35.1 29.5 23.9 17.6 16.0 38.1 58.3 Ratio to time deposits: Interest on time deposits 1.8 2.2 2.0 2.0 1.8 1.6 1.4 1.4 1.4 1.4 1.9 2.1 Ratios to loans: Interest and discount on loans 6.5 8.1 7.5 7.1 6.3 6.0 5.3 4.6 3.8 5.9 6.6 7.0 Recoveries on loans .3 .2 .2 .3 .3 .2 2 .3 .2 .2 .3 .3 Charge-offs on loans .7 1.2 .7 .6 .7 .6 .3 .5 .5 .4 . .7 .8 Net charge-offs on loans .4 1.0 .5 .3 .4 .4 .1 .2 .3 .2 .4 .5 Net return on loans 6.1 7.1 7.0 6.8 5.9 5.6 5.2 4.4 3.5 5.7 6.2 6.5 Ratios to securities: Interest and dividends on securities 3.5 4.2 3.7 3.7 3.5 3.5 2.9 2.8 2.2 3.1 3.6 4.0 Recoveries on securities _ .4 3.0 l.b .1 .4 .2 .2 .5 .3 1.2 .2 . 1 Profits on securities sold 1.1 .3 1.2 1.2 1.0 1.1 1.3 1.1 .9 1.1 1.1 Charge-offs on securities .6 .4 .5 .6 .7 .8 1.0 .7 .6 .6 .6 Net charge-offs on securities 1 +.9 .1 +2.0 +.6 +1.0 +.5 +.5 +.8 +.7 +1.5 +.7 +.6 . _.-. Net return on securities : 4.4 4.1 5.7 4.3 4.5 4.0 3.4 3.6 2.9 4.6 4.3 4.6 Number of banks 2 313 17 57 64 74 52 19 22 8 82 184 47 Ni.e (For footnotes see page 588.) JUNE 1940 595 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Member Bank Operating Ratios, 1939—Continued Chicago Federal Reserve District [Averages of individual bank ratios express>ed as percental'es] Size group—total deposits (in thousands of dollars) Ratio of time deposits to total deposits (per cent) All Item groups u a n 2 n 5 d d 0 er 2 5 5 0 0 0 - 1 5 ,0 0 0 0 0 - 1 2 , , 0 0 0 0 0 0 - 2 5 , , 0 0 0 0 0 0 - 5 10 , , 0 0 0 0 0 0 -1 5 0 0 , , 0 0 0 0 0 0 - 5 O 0, v 0 e 0 r 0 Un 2 d 5 er 25-50 50-75 o a v 7 n e 5 d r Ratios to total earnings: Interest and discount on loans 50.6 63.1 62.2 56.5 50.2 42.3 38.9 39.1 30.0 52.6 51.2 48.7 51.0 Interest and dividends on securities 31.2 23.3 22.6 27.6 33.2 37.9 34.6 36.7 46.6 26.5 28.7 36.0 36.6 Service charges 7.3 5.2 6.6 6.4 7.5 8.0 10.1 8.2 3.9 9.1 8 5 5 6 3 2 All other earnings _ _ 10.9 8.4 8.6 9.5 9.1 11.8 16.4 16.0 19.5 11.8 11.6 9.7 9.2 Total earnings ___ _ 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Salaries and wages 30.0 31.8 30.4 29.1 29.6 29.1 31.4 31.7 35. 7 35.1 30.7 27.2 25.0 Interest on time deposits 17.6 13.3 16.1 19.2 18.4 19.3 15.6 15.1 10.9 5.9 15.1 24.8 32.3 Real estate taxes _ _ __ 1.8 1.5 1.5 1.8 1.8 2.1 2.2 1.8 1.3 1.6 1.8 1.9 1.6 Other taxes 3.7 6.0 4.3 3.7 3.8 3.5 2.8 3 2 4.1 5 2 4 2 2 6 2 4 All other expenses __ _ __ ___ 19.5 19.5 19.8 18.7 18.4 18.8 22.4 21.5 20.8 21.9 19.8 18.0 17.7 Total expenses _ 72.6 72.1 72.1 72.5 72.0 72.8 74.4 73.3 72.8 69.7 71.6 74.5 79.0 Net earnings 27.4 27.9 27.9 27.5 28.0 27.2 25.6 26.7 27.2 30.3 28.4 25.5 21.0 Net charge-offs, etc. * .2 +.7 2.0 1.7 +.1 +.1 +1.5 +3.6 +8.3 +.2 .5 +.3 2.5 Net profits- __ - 27.2 28.6 25.9 25.8 28.1 27.3 27.1 30.3 35.5 30.5 27.9 25.8 18.5 Ratios to total capital accounts: N N e e t t e ch ar a n rg in e- g o s f fs, etc. 1 _ _ _ __ 8 . . 5 9 6 . . 2 9 8 . . 8 5 9 1 . . 3 3 9 . . 2 2 8 . . 4 9 3 9 . . 0 2 + 8 . . 7 4 + 7 . . 9 6 8 . . 4 7 9 . . 6 1 9 . . 4 0 7 . . 8 3 Net profits 8.4 6.7 7.7 8.0 9.0 8.5 9.2 9.1 8.5 8.3 8.5 8.6 6.5 Cash dividends declared 2.3 2.4 2.2 2.5 2.3 2.2 1.9 2.0 2.4 2.9 2.3 1.9 2.4 Real estate assets _ 20.4 13.4 17.0 20.0 19.0 22.8 26.5 25.4 10.9 17.6 19.6 23.0 18.6 Ratios to total assets: Total earnings _ __ __ 3.3 3.8 3.8 3.5 3.2 3.1 3.1 2.6 1.9 3.0 3.3 3.5 3.9 Total expenses _____ 2.4 2.7 2.7 2.5 2.3 2.2 2.3 1.9 1.4 2.1 2.3 2.6 3.0 Net earnings .9 1.1 1.1 1.0 .9 .9 .8 .7 .5 9 1 0 9 .9 Net charge-offs, etc. i 3.0 3.0 .1 .1 3.0 3.0 3+.0 +.1 +.1 3.0 .1 3.0 .1 Net profits--. _ _ _ - .9 1.1 1.0 .9 .9 .9 .8 .8 .6 .9 .9 .9 .8 Loans __ _ _____ 32.1 37.8 41.0 36.2 31.1 26.7 25.4 23.6 17.1 32.2 32.7 31.1 34.2 Securities 34.3 27.7 28.0 30.9 35.0 40.0 38.7 39.5 44.6 27.6 31.8 39.7 42.7 Real estate assets _ _ 2.2 2.2 2.2 2.1 2.0 2.2 2.6 2.2 .8 2.0 2.1 2.4 2.0 Cash assets 31.3 32.2 28.7 30.7 31.8 30.9 32.9 34.4 37.0 38.0 33.3 26.7 21.0 Total capital accounts..- 11.0 17.1 13.3 11.1 10.6 10.0 9.4 8.6 6.9 11.4 11.0 10.6 11.7 Ratio to loans, sees., and real estate assets: Total capital accounts _ _ 16.3 26.4 19.1 16.3 16.2 14.7 14.2 13.4 11.1 18.9 16.8 14.6 14.9 Ratios to total deposits: Total capital accounts 12 5 20.9 15.6 12.6 12.0 11.2 10.7 9.5 7.5 13.1 12.5 12.0 13.9 Time deposits _ __ - - 43.7 33.7 41.8 44.6 44.3 49.1 43.6 38.5 20.2 14.5 38.0 60.5 81.7 Ratio to time deposits: Interest on time deposits. _ 1.4 1.6 1.6 1.6 1.5 1.3 1.2 1.1 1.1 1.2 1.4 1.6 1.6 Ratios to loans: Interest and discount on loans 5.4 6.6 5.9 5.6 5.4 5.1 4.8 4.5 3.2 5.1 5.3 5.6 5.8 Recoveries on loans 5 7 .4 6 4 6 5 4 4 4 4 7 2 Charge-offs on loans.- .6 .3 .4 .7 .5 .6 .6 .5 .4 .4 .5 .7 .5 Net charge-offs on loans 1____. .1 +.4 3.0 .1 .1 3.0 .1 .1 3+.0 3.0 .1 3.0 .3 Net return on loans 5.3 7.0 5.9 5.5 5.3 5.1 4.7 4.4 3.2 5.1 5.2 5.6 5.5 Ratios to securities: Interest and dividends on securities 2.9 3.3 3.0 3.0 3.0 2.8 2.6 2.3 1.9 2.8 2.8 3.0 2.9 Recoveries on securities .3 .2 .2 .3 .4 .3 .3 .3 .1 .2 .3 .3 .3 Profits on securities sold 1.1 .8 1.0 1.1 1.3 1.1 1.1 1.3 .9 .9 1.1 1.2 1.5 Charge-offs on securities... _ _ _ _ _ 1.1 .8 1.1 1.2 1.1 1.1 .9 .9 .7 .8 1.0 1.2 1.7 Net charge-offs on securities! +.3 +.2 +.1 +.2 +.6 +.3 +.5 +.7 +.3 +.3 +.4 +.3 +.1 Net return on securities _ 3.2 3.5 3.1 3.2 3. 6 3.1 3.1 3.0 2.2 3.1 3.2 3.3 3.0 Number of banks2 782 28 117 195 169 75 53 11 136 334 284 28 134 (For footnotes see page 588.) 596 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Member Bank Operating Ratios, 1939—Continued St. Louis Federal Reserve District [Averages of individual bank ratios expressed as percentages] Size group—total deposits (in thousands of dollars) R to a t t a io l d o e f p t o im si e ts d ( e p p e o r s c it e s n t t o ) All Item groups u a n 2 n 5 d d 0 er 2 5 5 0 0 0 - 1 5 ,0 0 0 0 0 - 1 2 , , 0 0 0 0 0 0 - 2 5 , , 0 0 0 0 0 0 - 5 10 , , 0 0 0 0 0 0 -1 5 0 0 , , 0 0 0 0 0 0 - 5 O 0, v 0 e 0 r 0 Un 25 der 25-50 50-75 o a v 7 n e 5 d r Ratios to total earnings: Interest and discount on loans _ 55.3 67.9 61.7 56.3 53.4 47.9 45.1 49.3 45.0 54.7 57.3 53.0 37.3 Interest and dividends on securities 29.3 19.3 26.1 30.0 29.7 34.2 34.6 29.1 36.5 25.9 27.1 35.0 56.6 Service charges.. . 4.8 4.2 3.7 4.0 6.3 6.6 5.3 3.9 2.6 5.7 5.2 3.6 1.0 All other earnings 10.6 8.6 8.5 9.7 10.6 11.3 15.0 17.7 15.9 13.7 10.4 8.4 5,1 Total earnings __ _ _ _ _. 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Salaries and wages 28.1 29.8 28.3 26.6 27.8 28.9 29.4 30.1 31.4 32.5 28.4 24.0 21.1 Interest on time deposits 16.6 12.0 16.1 18.8 16.3 17.1 18.4 13.6 8.3 5.9 17.0 24.5 37.2 Real estate taxes. _ 2.5 2.6 2.2 2.4 2.7 2.8 3.3 2.2 2.4 2.7 2.5 2.6 .9 Other taxes 4.9 5.2 5.7 4.9 5.1 3.9 2.6 4.6 5.3 6.0 4.8 4.0 3.1 All other expenses.. _ _ _ ______ 18.6 21.9 18.8 18.2 17.2 18.0 18.4 21.7 22.8 20.5 18.6 16.8 16.1 Total expenses 70.7 71.5 71.1 70.9 69.1 70.7 72.1 72.2 70.2 67.6 71.3 71.9 78.4 Net earnings _ _ 29.3 28.5 28.9 29.1 30.9 29.3 27.9 27.8 29.8 32.4 28.7 28.1 21.6 Net charge-offs, etc.! ________ __ _ 2.8 4.2 1.4 2.3 4.4 1.6 3.6 5.0 +1.2 1.5 2.7 4.6 +4.5 Net profits. _ __ _ ____ 26.5 24.3 27.5 26.8 26.5 27.7 24.3 22.8 31.0 30.9 26.0 23.5 26.1 Ratios to total capital accounts: Net earnings 8.9 6.2 8.5 9.1 9.8 9.1 8.6 9.2 7.8 9.4 8.7 8.9 6.4 Net charge-offs, etc. i __ - __ 1.2 1.1 .9 1.1 1.7 .8 1.1 1.7 .1 .8 1.2 1.6 +1.5 Net profits ... __ _ 7.7 5.1 7.6 8.0 8.1 8.3 7.5 7.5 7.7 8.6 7.5 7.3 7.9 Cash dividends declared 3.1 2.1 3.3 3.1 3.1 3.4 2.7 3.6 4.2 4.1 3.1 2.4 .9 Real estate assets _. _ - 24.2 21.6 20.7 22.1 25.6 29.6 27.0 30.1 17.2 19.6 26.1 25.3 16.3 Ratios to total assets: Total earnings 3 6 4 5 3 8 3.9 3.5 3.2 3.1 2.7 2.0 3.4 3 7 3.7 3 4 Total expenses _. _ ___ __ _ 2.5 3.2 2.7 2.7 2.4 2.3 2.2 2.0 1.4 2.3 2.6 2.6 2.7 Net earnings 1.1 1.3 1.1 1.2 1.1 .9 .9 .7 .6 1.1 1.1 1.1 .7 Net charge-offs, etc.! __ _ _ .1 .3 .1 .1 .2 3.0 .2 .1 3.0 .1 .1 .2 +.2 Net profits . ______ 1.0 1.0 1.0 1.1 .9 .9 .7 .6 .6 1.0 1.0 .9 .9 Loans _ __ ___ _ _ __ 34.4 43.4 35.7 35.4 33.1 30.8 29.4 31.9 29.6 33.8 34.4 35.6 24.7 Securities 30.8 21.8 28.3 31.7 31.3 34.6 37.6 29.4 32.1 26.7 28.8 37.4 54.4 Real estate assets 3.0 4.9 2.8 2.8 2.9 3.2 2.8 2.8 1.4 2.6 3.3 3.0 1.9 Cash assets 31.6 29.9 33.2 29.9 32.5 31.1 29.9 35.6 36.5 36.7 33.3 23.9 19.0 Total capital accounts _ _ __ 13.1 22.0 14.0 13.3 11.8 11.1 10.9 8.6 7.8 13.4 13.2 12.5 12.4 Ratio to loans, sees., and real estate assets: Total capital accounts __ __ _ 19.5 32.7 21.7 19.2 17.9 16.7 15.9 13.6 12.3 22.0 19.9 16.6 15.4 Ratios to total deposits: Total capital accounts 15.5 29.0 16.6 15.6 13.6 12.9 12.8 9.5 8.5 16.1 15.7 14.6 14.2 Time deposits __ _ 37.7 32.5 34.0 42,1 36.8 41.5 45.6 27.2 15.4 13.4 37.6 58.6 78.7 Ratio to time deposits: Interest on time deposits 1.8 1.9 1.9 1.9 1.7 1.5 1.4 1.5 1.2 1.5 1.9 1.7 1.8 Ratios to loans: Interest and discount on loans 6.0 7.4 6.7 6.2 5.9 5.2 4.9 4.2 3.1 5.7 6.3 5.7 5.2 Recoveries on loans __ .3 .4 .3 .3 .5 .3 .3 .3 .3 .3 .4 .2 .3 Charge-offs on loans .6 1.0 .6 .7 .6 .5 .9 .4 .3 .5 .7 .7 .6 Net charge-offs on loans ___ _ _. _. .3 .6 .3 .4 .1 .2 .6 .1 3.0 .2 .3 .5 .3 Net return on loans ___ __ _ ._ 5.7 6.8 6.4 5.8 5.8 5.0 4.3 4.1 3.1 5.5 6.0 5.2 4.9 Ratios to securities: Interest and dividends on securities 3.3 3.9 3.4 3.5 3.2 3.2 2.9 2.7 2.2 3.2 3.4 3.2 3.5 Recoveries on securities _ .4 .5 .3 .3 .2 .7 .4 .6 .6 .4 .3 .6 .6 Profits on securities sold _ _. - 1.3 1.5 1.4 1.5 1.1 1.1 1.2 1.1 1.1 1.3 1.3 1.2 1.1 Charge-offs on securities _ __ _ .9 .2 .6 1.0 .9 1.1 1.1 1.5 1.5 .8 .7 1.3 1.2 Net charge-offs on securities 1 +.8 +1.8 +1.1 +.8 +.4 +.7 +.5 +.2 +.2 +.9 +.9 +.5 +.5 Net return on securities . . _ __ 4.1 5.7 4.5 4.3 3.6 3.9 3.4 2.9 2.4 4.1 4.3 3.7 4.0 Number of banks2 _ _ __ 381 30 65 108 81 54 18 18 7 91 190 93 7 (For footnotes see page 588.) JUNE 1940 597 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Member Bank Operating Ratios, 1939—Continued Minneapolis Federal Reserve District [Averages of individual bank ratios expressed as percentages] Size group—total deposits (in thousands of dollars) Ratio of time deposits total deposits (per cent) All Item groups u a n 2 n 5 d d 0 er 2 5 5 0 0 0 - 1 5 ,0 0 0 0 0 - 1 2 , , 0 0 0 0 0 0 - 2 5 ,0 ,0 0 0 0 0 - 5 1 , 0 0 , 0 0 0 0 - 0 1 5 0 0 ,0 ,0 0 0 0 0 - 5 O 0 v ,0 e 0 r 0 Un 2 d 5 er 25-50 50-75 o a 7 v n 5 e d r Ratios to total earnings: Interest and discount on loans 47.9 54.5 55.6 47.3 41.7 37.7 39.4 42.6 42.9 43.3 50.0 47.8 36.3 Interest and dividends on securities 30.3 20.8 22.9 31.9 37.2 39.5 36.5 38.9 33.1 28.4 26.1 32.7 51.9 Service charges - . 4.3 4.7 3.2 3.8 5.1 5.9 6.5 4.6 2.3 5.8 5.2 3.4 2.1 All other earnings 17.5 20.0 18.3 17.0 16.0 16.9 17.6 13.9 21.7 22.5 18.7 16.1 9.7 Total earnings 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Salaries and wages 30.1 34.3 29.1 28.6 29.2 31.0 33.9 33.0 34.6 34.1 31.8 28.2 26.0 Interest on time deposits . 18.5 13.6 19.0 22.0 19.0 17.3 11.9 11.6 8.9 6.7 14.5 23.1 33.7 Real estate taxes .. 2.6 3.6 2.4 2.6 2.3 2.9 2.6 2.1 2.0 3.5 2.9 2.3 1.3 Other taxes 3.7 4.3 3.5 3.3 4.0 3.2 3.5 7.0 4.1 5.1 3.5 3.5 3.8 All other expenses 19.1 20.5 18.8 17.9 18.6 19.6 23.3 21.0 22.5 20.9 20.4 17.8 15.5 Total expenses 74.0 76.3 72.8 74.4 73.1 74.0 75.2 74.7" 72.1 70.3 73.1 74.9 80. 3 Net earnings __ .. 26.0 23.7 27.2 25.6 26.9 26.0 24.8 25.3 27.9 29.7 26.9 25.1 19.7 Net charge-offs, etc.1 6.8 15.0 7.1 6.5 6.0 3.1 5.5 +10.7 4.7 9.4 6.6 6.5 6.5 Net profits 19.2 8.7 20.1 19.1 20.9 22.9 19.3 36.0 23.2 20.3 20.3 18.6 13.2 Ratios to total capital accounts: Net earnings 9.7 6.6 10.7 10.5 10.1 9.1 8.1 7.6 7.0 9.1 9.7 10.0 7.1 Net charge-offs, etc.1 2.6 4.0 2.8 2.8 2.4 1.5 L4 +2.5 1.0 2.5 2.3 2.8 2.0 Net profits.. 7.1 2.6 7.9 7.7 7.7 7.6 6.7 10.1 6.0 6.6 7.4 7.2 5.1 Cash dividends declared 3.0 1.3 3.4 3.4 3.0 2.6 2.1 5.0 3.3 2.8 2.7 3.2 3.2 Real estate assets .. 24.1 25.0 23.0 24.6 23.4 27.0 22.8 17.5 21.3 19.9 25.7 24.3 13.3 Ratios to total assets: Total earnings 4.2 5.0 4.8 4.2 3.8 3.3 2.9 2.6 2.2 3.8 4.2 4.3 3.7 Total expenses.. .. .. 3.1 3.8 3.5 3.1 2.7 2.4 2.1 1.9 1.6 2.6 3.0 3.2 2.9 Net earnings . 1.1 1.2 1.3 1.1 1.1 .9 .8 .7 .6 1.2 1.2 1.1 .8 Net charge-offs, etc.1 .3 .7 .3 .3 .3 .1 .2 +.2 .1 .4 .3 .3 .2 Net profits .8 .5 1.0 .8 .8 .8 .6 .9 .5 .8 .9 .8 . 6 Loans - -. _. _ 33.0 39.4 39.8 32.7 27.6 24.6 24.7 23.4 27.8 28 1 34 1 33.8 24 6 Securities .. 36.3 27.2 30.6 38.3 43.1 43.1 38.7 38.3 31.5 31.4 32.6 39.4 51.3 Real estate assets 2.9 4.6 2.9 2.7 2.5 2.7 2.1 1.6 1.9 2 5 3 2 2.8 1 5 Cash assets _ ._ . 27.5 28.7 26.5 26.0 26.6 29.2 34.0 36.3 38.2 37.7 29.8 23.8 22.4 Total capital accounts _ 12.1 19.1 12.8 11.1 10.6 9.9 9.1 9.2 8.8 13.1 12.5 11.6 11.3 Ratio to loans, sees., and real estate assets: Total capital accounts 17.1 27.1 17.8 15.3 14.6 14.4 14.2 15.1 14.5 21.5 18.2 15.4 14.7 Ratios to total deposits: Total capital accounts 14.1 24.1 14.8 12.5 11.9 11.1 10.1 10.1 9.8 15.7 14.6 13.3 12.8 Time deposits 48. 8 39.0 49.3 54.7 51.6 49.2 35.2 29.7 17.9 18.4 38.7 61.4 78.9 Ratio to time deposits: Interest on time deposits 1.7 2.0 2.1 1.8 1.5 1.3 1.1 1.0 12 1.4 1.7 1.8 1.7 Ratios to loans: Interest and discount on loans 6.2 7.0 6.8 6.2 5.8 5.2 4.7 5.7 3.4 6.0 6.3 6.2 5.6 Recoveries on loans .7 .7 .6 .5 .7 1.0 .7 3.6 .9 1.0 .9 .5 .3 Charge-offs on loans .9 1.9 .9 .7 .6 .8 .9 3.1 .6 1.8 1.0 .8 .4 Net charge-offs on loans1 .2 1.2 .3 .2 +.1 +.2 .2 +.5 +.3 .8 .1 .3 .1 Net return on loans 6.0 5.8 6.5 6.0 5.9 5.4 4.5 6.2 3.7 5.2 6.2 5.9 5.5 Ratios to securities: Interest and dividends on securities 3.3 3.5 3.6 3.3 3.2 2.9 2.5 2.4 2.4 3.1 3.2 3.3 3.8 Recoveries on securities .4 .2 .4 .4 .3 .5 .2 .3 .3 .3 .3 .4 .2 Profits on securities sold . .7 .5 .8 .9 .7 .7 .9 1.0 .6 .4 .7 .9 1.2 Charge-offs on securities 1.1 .5 1.0 1.5 1.0 1.2 .9 .8 1.0 .7 .8 1.3 1.6 Net charge-offs on securities 1 3+.0 +.2 +.2 .2 3.0 3+.0 +.2 +.5 .1 3.0 +.2 3.0 .2 Net return on securities... 3.3 3.7 3.8 3.1 3.2 2.9 2.7 2.9 2.3 3.1 3.4 3.3 3. 6 Number of banks2 457 54 120 122 81 51 18 8 3 43 185 212 17 (For footnotes see page 588.) 598 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Member Bank Operating Ratios, 1939—Continued Kansas City Federal Reserve District [Averages of individual bank ratios expressed as percentages] Size group—total deposits (in thousands of dollars) Ratio of time deposits to total deposits (per cent) Item gr A ou ll ps u a n 2 n 5 d d 0 er 2 5 5 0 0 0 - 1 5 ,0 0 0 0 0 - 1 2 , , 0 0 0 0 0 0 - 2 5 , , 0 0 0 0 0 0- 5 1 , 0 0 ,0 0 0 0 0 - 1 5 0 0 , , 0 0 0 0 0 0 - 5 O 0, v 0 e 0 r 0 Un 2 d 5 er 25-50 50-75 o a v 7 n e 5 d r ' Ratios to total earnings: Interest and discount on loans 61.2 69.7 66.3 60.3 56.1 50.8 50.3 42.4 46.5 59.6 63.5 58.3 Interest and dividends on securities _. 21.2 14.9 17.4 22.1 24.8 28.9 30.1 34.4 31.1 21.8 19.9 27.4 Service charges. 7.7 6.5 7.3 8.0 9.1 9.1 7.6 6.3 4.4 8.3 7.2 4 2 All other earnings 9.9 8.9 9.0 9.6 10.0 11.2 12.0 16.9 18.0 10.3 9.4 10.1 Total earnings 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Salaries and wages 34.2 37.2 34.4 32.8 32.7 33.6 33.6 33.9 30.0 35.8 32.4 29.5 Interest on time deposits _ 9.1 7.6 9.1 9.5 11.1 9.4 9.3 6.9 5.3 5.6 12.8 21.9 Real estate taxes 2.0 2.0 2.0 1.8 2.1 2.2 2.0 3.1 1.5 2.1 1 9 2 9 Other taxes 4.1 4.6 3.9 4.0 3.9 3.9 4.3 3.9 5.4 4.3 3.8 3.0 All other expenses 19.0 20.3 18.9 17.1 17.6 19.7 22.5 25.1 23.9 19.9 18.2 14.2 Total expenses 68.4 71.7 68.3 65.2 67.4 68.8 71.7 72.9 66.1 67.7 69.1 71.5 Net earnings 31.6 28.3 31.7 34.8 32.6 31.2 28.3 27.1 33 9 32.3 30 9 28 5 Net charge-offs, etc. i 4.0 5.9 6.3 5.2 .9 .7 2.6 +6.8 +10.0 2.3 6.1 6.8 Net profits 27.6 22.4 25.4 29.6 31.7 30.5 25.7 33.9 43.9 30.0 24.8 21.7 Ratios to total capital accounts: N N e e t t c e h a a rn rg in e- g o s ffs, etc. i 1 1 0 . . 6 9 8 1 . . 2 9 1 2 1 . . 3 6 1 1 2 . . 9 1 12 . . 5 4 •10 . . 6 7 9 1 . . 8 6 + 8 . . 9 0 +2 7 . . 1 8 10 . . 9 4 1 2 1 . . 3 6 1 2 0 . . 7 0 Net profits 9.3 6.3 9.3 10.2 11.9 10.1 8.2 8.9 9.9 9.5 9.3 7.3 Cash dividends declared 4.7 3.8 5.2 5.1 5.3 4.0 2.9 2.9 3.5 4.8 4.4 5.0 Real estate assets 16.8 14.3 15.8 16.3 17.1 22.4 21.3 20.1 18.7 16.1 17.6 18.6 Ratios to total assets: Total earnings 4.3 5.0 4.8 4.2 3.9 3.4 2.8 2.2 1.9 4.1 4.5 4.1 Total expenses 2.9 3.5 3.2 2.7 2.6 2.3 2.0 1.6 1.2 2.7 3.1 2.9 Net earnings 1 4 1 5 1.6 1.5 1 3 1.1 .8 .6 7 1.4 1.4 1.2 Net charge-offs, etc. 1 .2 .3 .3 .2 3.0 .1 .1 +.1 +.2 .2 .3 .3 Net profits 1.2 1.2 1.3 1.3 1.3 1.0 .7 .7 .9 1.2 1.1 .9 Loans 35.9 42.6 40.7 34.2 31.4 27.0 26.8 23.8 22.7 33.6 38.8 35.3 Securities 25.9 21.4 23.3 27.0 29.2 30.3 31.8 32.4 26.9 26.0 25.2 32.3 Real estate assets 2 1 2 6 2 2 2.0 1 9 2.3 1.7 1.6 1 6 2.1 2.2 2.4 Cash assets 36.0 33.3 33.8 36.7 37.4 40.2 39.5 41.9 48.6 38.2 33.6 30.0 Total capital accounts 13.4 18.7 14.1 12.6 11.0 10.4 8.4 8.2 8.5 13.6 13.2 13.1 Ratio to loans, sees., and real estate assets: Total capital accounts _ 21.3 28.8 21.6 20.4 18.0 17.9 14.0 14.8 16.7 22.4 20.1 19.0 Ratio to total deposits: Total capital accounts 15.9 23.5 16.8 14.7 12.4 11.6 9.3 9.0 9.4 16.1 15.6 15.4 Time deposits 23.9 22.1 23.9 24.1 27.8 25.4 23.4 14.8 12.3 14.9 33.5 54.1 Ratio to time deposits: Interest on time deposits 1.7 2.0 1.9 1.7 1.7 1.4 1.2 1.0 1.0 1.6 1.9 1.9 Ratios to loans: Interest and discount on loans 7.5 8.5 8.1 7.7 7.1 6.6 5.2 4.2 3.9 7.5 7.6 7.2 Recoveries on loans .8 .8 .6 . 7 .8 1.0 Charge-offs on loans 1.0 1.1 1.0 1.0 .8 .7 .5 1.3 .3 .8 1.1 .9 Net charge-offs on loans1 .2 .3 .3 .3 .1 3+.0 +.2 +.1 +.3 .1 .3 +.1 Net return on loans . 7.3 8.2 7.8 7.4 7.0 6.6 5.4 4.3 4.2 7.4 7.3 7.3 Ratios to securities: Interest and dividends on securities „ 3.2 3.4 3.4 3.2 3.2 3.1 2.5 2.3 2.2 3.2 3.3 3.3 Recoveries on securities „ .3 .1 .5 .2 .3 .4 .2 1.5 . 1 3 .4 .4 Profits on securities sold .7 .7 .7 .5 .9 .7 .7 1.2 1.2 .7 .7 .5 Charge-offs on securities .4 .2 .3 .4 .5 .7 .8 2.0 .3 .5 .4 1. 1 Net charge-offs on securities1 *_._ +.6 +.6 +.9 +.3 +.7 +.4 +.1 +.7 +1.0 +.5 +.7 .2 Net return on securities - _ 3.8 4.0 4.3 3.5 3.9 3.5 2.6 3.0 3.2 3.7 4.0 3.1 Number of banks2 734 137 208 160 105 71 25 22 6 402 310 22 None (For footnotes see page 588.) JUNE 1940 599 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Member Bank Operating Ratios, 1939—Continued Dallas Federal Reserve District [Averages of individual bank ratios expressed as percentages] Ratio of time"deposits to Size group—total deposits(in thousands of dollars) total deposits (per cent) All Item groups u a n 2 n 5 d d 0 er 2 5 5 0 0 0 - 1 5 , 0 0 0 0 - 0 1 2 , , 0 0 0 0 0 0 - 2 5 , , 0 0 0 0 0 0 - 5 1 , 0 , 0 0 0 0 0 0 -1 5 0 0 , , 0 0 0 0 0 0- 5 O 0, v 0 e 0 r 0 Un 2 d 5 er 25-50 50-75 o a v 7 n e 5 d r Ratios to total earnings: I I n n t t e e r re e s s t t a an n d d d d i i s v c id o e u n n d t s o n o n l o s a e n c s urities 6 1 6 9 .1 0 7 1 8 0 . . 9 3 6 1 9 7 . . 3 1 6 2 4 0 . . 3 2 6 22 1 . . 9 8 5 2 6 5 . . 4 4 2 5 6 3 . . 7 3 2 5 6 3 . . 2 5 5 1 7 9 . . 5 5 6 1 7 7. . 9 1 2 5 5 9 . . 8 9 4 4 1 7 . . 9 1 Service charges 5.7 3.8 5.2 6.2 7.2 6.0 7.8 5.9 2.8 5.9 4.8 2.3 All other earnings.. _ _ 9.2 7.0 8.4 9.3 8.1 12.2 12.2 14.4 20.2 9.1 9.5 8.7 Total earnings 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Salaries and wages 34 5 36.5 36.6 33.8 32.8 31.4 34.2 32.5 28.0 34.9 31.9 29.1 Interest on time deposits _ 4.9 2.8 2.8 4.9 6.1 8.1 8.9 9.5 4.5 3.5 12.7 25.2 Real estate taxes 4 5 4.5 4.3 4 4 4.1 4 9 5 9 4.8 6. 3 4.4 4.9 2.7 Other taxes 4.4 4.2 5.1 4.8 3.8 3.7 3.5 3.5 5.1 4.6 3.2 4.2 All other expenses ______ 20.2 21.4 20.5 19.7 19.1 18.6 22.1 22.1 20.8 20.4 19.4 18.5 Total expenses ___ ______ _ 68.5 69.4 69.3 67.6 65.9 66.7 74.6 72.4 64.7 67.8 72.1 79.7 Net earnings _ _ __ 31.5 30.6 30.7 32.4 34.1 33.3 25.4 27.6 35.3 32.2 27.9 20.3 Net charge-offs, etc.* 1.9 5.9 +.1 .9 4.2 3.7 +3.3 +2.7 +8.4 2.1 1.8 +18.6 Net profits _ _ 29.6 24.7 30.8 31.5 29.9 29.6 28.7 30.3 43.7 30.1 26.1 38.9 Ratios to total capital accounts: Net earnings _ _ 10.0 7.7 9.3 11.0 12.0 11.5 8.3 8.4 7.8 10.1 9.2 8.1 Net charge-offs, etc. i _ __ .9 1.7 .4 .5 1.8 1.5 +.7 +.6 +1.1 .9 .8 +5.2 Net profits _ . _ _ 9.1 6.0 8.9 10.5 10.2 10.0 9.0 9.0 8.9 9.2 8.4 13.3 Cash dividends declared _ 4.3 3.6 4.6 4.9 4.5 4.2 3.2 3.4 4.2 4.3 3.9 9.2 Real estate assets 20.4 15.0 18.0 19.9 20.1 25.7 34.6 31.2 35.5 19.7 24.8 9.3 Ratios to total assets: Total earnings 4.4 5.7 4.9 4.4 3.9 3.5 2.8 2.3 2.2 4.5 4.0 3.0 Total expenses 3.0 3.9 3.4 2.9 2.6 2.3 2.1 1.6 1.4 3.0 2.9 2.4 Net earnings 1 4 1.8 1.5 1 5 1.3 1 2 .7 .7 .8 1.5 1.1 .6 Net charge-offs, etc. *_ _. _. .1 .4 3.0 .1 .2 .2 +.1 3+.0 +.1 .2 .1 +.6 Net profits ___ 1.3 1.4 1.5 1.4 1.1 1.0 .8 .7 .9 1.3 1.0 1.2 Loans __ 36.0 45.2 39.2 34.9 32.6 28.5 26.8 26.1 29.7 36.6 32.9 21.3 Securities 21 9 14 4 20 3 23 3 25 7 26 7 24 6 26.1 22.3 20.9 26.5 53.6 Real estate assets 2 8 3 3 2.9 2 7 2.3 2 9 3.1 2.6 3.9 2.8 3.0 .8 Cash assets ___ _ 39.1 36.9 37.6 39.0 39.3 41.7 45.1 44.9 43.9 39.5 37.4 24.2 Total capital accounts.__ ... _ 15.5 24.2 17.2 14.1 11.8 11.2 9.3 7.9 10.6 15.9 12.9 11.8 Ratio to loans, sees., and real estate assets: Total capital accounts___ 25.9 39.1 28.0 23.9 19.9 19.8 18.2 14.7 19.6 26.8 20.8 16.2 Ratios to total deposits: Total capital accounts . _ 19.2 33.2 21.4 16.7 13.6 12.8 10.3 8.7 11.9 19.9 15.3 13.8 Time deposits.__ __ _ 12.5 9.3 8.9 12.0 14.0 20.7 21.5 18.1 11.2 9.0 32.3 60.8 Ratio to time deposits: Interest on time deposits _ __ _ __ _ 1.4 1.4 1.3 1.5 . 1.6 1.4 1.4 1.2 1.0 1.4. 1.7 1.4 Ratios to loans: Interest and discount on loans.._ _ _ _ 8.3 10.1 9.0 8.4 7.6 7.0 6.0 4.9 4.3 8.4 7.7 6.5 Recoveries on loans .9 1 l 1 0 8 7 .6 .8 .4 ,4 .9 .6 .8 Charge-offs on loans _ 1.1 1.6 1.0 .9 .9 .9 .7 .6 .5 1.1 .9 .4 Net charge-offs on loans 1 .2 .5 3+.0 .1 .2 .3 +.1 .2 .1 .2 .3 +.4 Net return on loans 8.1 9.6 9.0 8.3 7.4 6.7 6.1 4.7 4.2 8.2 7.4 6.9 Ratios to securities: Interest and dividends on securities ... 3.6 4.0 4.0 3.7 3.4 3.3 2.8 2.2 2.1 3.6 3.6 2.8 Recoveries on securities 2 3 1 I 1 2 3 6 6 2 3 0 Profits on securities sold 9 7 1 0 9 7 1 2 1 5 1 4 1 3 9 1 0 1.2 Charge-offs on securities _ .4 .3 .2 .4 .3 1.0 .7 1.3 .4 .4 .7 .3 Net charge-offs on securities i.__ ._ +.7 +.7 +.9 +.6 +.5 +.4 +1.1 +.7 +1.5 +.7 +.6 +.9 Net return on securities 4.3 4.7 4.9 4.3 3.9 3.7 3.9 2.9 3.6 4.3 4.2 3.7 Number of banks2 535 95 127 131 84 46 19 29 4 458 74 3 None (For footnotes see page 588.) 600 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Member Bank Operating Ratios, 1939—Continued San Francisco Federal Reserve District [Averages of individual bank ratios expressed as percentages] Size group—total deposits (in thousands of dollars) Ratio of time deposits to total deposits (per cent) All Item groups u a n 2 n 5 d d 0 er 2 5 5 0 0 0 - 1 5 , 0 0 0 0 - 0 1 2 , , 0 0 0 0 0 0 - 2 5 , , 0 0 0 0 0 0 - 5 1 , 0 0 ,0 0 0 0 0 - 1 5 0 0 , , 0 0 0 0 0 0 - 5 O 0, v 0 e 0 r 0 Un 25 der 25-50 50-75 o a v 7 n 5 e d r Ratios to total earnings: Interest and discount on loans 61.1 66.6 66.4 62.2 63.8 56.6 56.9 53.2 50.8 56.6 61.3 62.7 63.5 Interest and dividends on securities 22.9 15.0 18.2 22.9 22.2 27.1 23.1 26.1 32.7 23.9 21.7 24.5 25.2 Service charges. __ 5.5 6.9 5.8 5.8 4.8 6.0 4.5 5.5 4.2 8.3 5.7 4.2 2.0 All other earnings __ - 10.5 11.5 9.6 9.1 9.2 10.3 15.5 15.2 12.3 11.2 11.3 • 8.6 9.3 Total earnings 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100. 0 100.0 100.0 100.0 100.0 100.0 Salaries and wages ._. - _ 31.3 34.8 34.4 30.3 30.9 30.2 32.4 28.9 31.0 34.2 31.5 30.4 23.7 Interest on time deposits 16.7 10.4 14.9 17.5 16.5 18.1 20.6 16.1 17.6 7.6 14.8 23.3 31.2 Real estate taxes - 1.9 1.4 2.6 1.7 1.8 1.7 1.9 1.9 1.8 1.8 2.0 1.7 1.2 Other taxes 3.2 3.7 2.5 3.1 3.4 3.4 2.9 4.3 3.5 4.3 2.9 3.2 4.3 All other expenses 18.4 22.1 19.2 18.5 17.8 16.5 17.2 19.1 18.1 19.0 19.2 16.8 16.3 Total expenses .. 71.5 72.4 73.6 71.1 70.4 69.9 75.0 70.3 72.0 66.9 70.4 75.4 76.7 Net earnings - _ _ 28.5 27.6 26.4 28.9 29.6 30.1 25.0 29.7 28.0 33.1 29.6 24.6 23.3 Net charge-offs, etc - - 3.7 1.8 2.6 5.3 3.3 .6 3.9 3.2 7.5 4.2 4.4 1.4 8.6 Net profits_.. . _ __ _ 24.8 25.8 23.8 23.6 26.3 29.5 21.1 26.5 20.5 28.9 25.2 23.2 14.7 Ratios to total capital accounts: Net earnings 10.3 7.8 9.2 10.5 11.7 10.6 9.6 10.6 10.1 9.6 11.2 9.2 7.1 Net charge-offs, etc. 1.7 1.0 1.4 2.3 1.7 .7 1.6 1.1 2.7 1.7 2.1 .9 2.1 Net profits 8.6 6.8 7.8 8.2 10.0 9.9 8.0 9.5 7.4 7.9 9.1 8.3 5.0 Cash dividends declared __ 3.5 2.3 3.5 3.5 3.6 3.2 2.8 4.0 4.3 3.8 3.4 3. 6 2.4 Real estate assets - 25.5 15.2 24.9 22.1 24.3 26.4 34.5 33.7 35.3 19.5 25.1 29.4 22.2 Ratios to total assets: Total earnings . __ _ _ __ _ _ 4.1 5.2 4.7 4.3 4.2 3.7 3.7 3.3 3.0 3.6 4.2 4.2 4.3 Total expenses - - 2.9 3.8 3.4 3.0 2.9 2.6 2.7 2.3 2.2 2.4 2.9 3.1 3.3 Net earnings .- 1.2 1.4 1.3 1.3 1.3 1. 1 1.0 1.0 .8 1.2 1.3 1.1 1.0 Net charge-offs, etc.-- __. 2 .1 .2 .3 .2 3.0 .2 .1 .2 .2 .2 .1 .4 Net profits 1.0 1.3 1.1 1.0 1.1 1.1 .8 .9 .6 1.0 1.1 1.0 .6 Loans 39 6 47 1 43 2 40.4 41 5 35 3 38 2 33 7 31 2 30.9 39.5 43 1 45 4 Securities 27.0 19.5 21.7 26.8 26.2 30.6 27.5 31.2 38.8 26.4 25.9 28.9 31.8 Real estate assets ____ _ _ 3.0. 2.8 3.6 2.8 2.8 2.8 3.4 3.3 2.9 2.6 2.9 3.5 3.4 Cash assets __ __ ___ __ __ _ 30.2 30.4 31.4 29.8 29.4 31.1 30.6 31.5 26.6 40.0 31.5 24.3 19.2 Total capital accounts... __ 12.2 19.2 14.6 12.7 11.5 11.1 9.9 9.5 8.3 13.8 11.8 12.3 14.0 Ratio to loans, sees., and real estate assets: Total capital accounts 18.1 28.4 21.8 18.5 17.2 16.6 14.5 14.2 11.5 24.4 17.6 16.3 17.4 Ratios to total deposits: Total capital accounts 14.3 24.4 17.5 14.9 13.2 12.6 11.2 10.6 9.1 16.6 13.7 14.4 16.6 Time deposits, 42.6 33.2 40.3 44.3 42.5 45.7 48.7 37.9 42.0 16.0 38.7 58.9 80.9 Ratio to time deposits: Interest on time deposits _. ___ 1.7 2.0 1.9 1.8 1.7 1.6 1.6 1.6 1.4 1.6 1.7 1.8 1.9 Ratios to loans: Interest and discount on loans 6.5 7.5 7.4 6.7 6.6 6.0 5.5 5.2 4.8 6.6 6.6 6. 3 6.2 Recoveries on loans _ _ _ _ .4 1.4 .5 .5 .5 .2 .3 .3 .3 .6 .5 .2 .1 Charge-offs on loans __ _ .7 .5 .6 .8 .8 .4 .5 .4 1.0 .5 .8 .5 .5 Net charge-offs on loansl __ __ .3 +.9 .1 .3 .3 .2 .2 . 1 .7 +.1 .3 .3 .4 Net return on loans _._ __ 6.2 8.4 7.3 6.4 6. 3 5.8 5.3 5.1 4.1 6.7 6.3 6.0 5.8 Ratios to securities: Interest and dividends on securities 3.3 4.2 3.6 3.5 3.5 3.1 2.9 2.6 2.3 3.2 3.4 3.3 3.1 Recoveries on securities .3 3.0 .3 .2 .8 .2 .4 .3 .2 .2 .3 .4 .9 Profits on securities sold- _ __ .9 1.4 1.1 .8 .8 1.0 1.0 1.0 .3 .9 1.2 1.0 C harge-offs on securities .6 .7 .6 .5 .7 . 7 1.3 .8 .6 .7 .6 1.6 Net charge-offs on securities 1 _ _ _ +.6 +.7 +.8 +.5 +.9 +.5 +.1 +.2 +.4 .1 +.5 +1.0 +.3 Net return on securities .. 3.9 4.9 4.4 4.0 4.4 3.6 3.0 2.8 2.7 3.1 •3.9 4.3 3.4 Number of banks2 276 12 46 ' 82 51 32 17 22 14 35 156 78 7 (For footnotes see page 588.) JUNE 1940 601 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NUMBER OF COMMERCIAL1 BANKS AND NUMBER OF NONMEMBER BANKS WITH CAPITAL STOCK SUFFICIENT AND INSUFFICIENT, RESPECTIVELY, TO MEET MINIMUM STATUTORY CAPITAL REQUIREMENTS FOR FEDERAL RESERVE MEMBERSHIP6, DEC. 31, 1939 Nonmember commercial banks with Nonmember commercial banks with All commercial banks ! sufficient capital stock for Federal insufficient capital stock for Federal Reserve membership« Reserve membership « Insured Uninsured Insured Uninsured Federal Reserve banks banks banks banks District and State T n b u o e m t r a - l ti N on a a - l m S b t e a e m r te - m N b e o e m n r - - T n b u o e m t r a - l P O a n r N P ot a r on P O a n r N P ot a r on T n b u o e m t r a - l P O a n r N P ot a r on P O a n r N P ot a r on List List List List List List List List Boston 528 311 42 175 141 107 34 34 15 19 New York 1,032 596 172 264 224 214 10 40 32 8 Philadelphia 894 586 66 242 225 218 7 17 14 3 Cleveland 1,217 504 135 578 475 455 1 19 103 98 1 4 Richmond . 1,001 333 77 591 394 220 157 12 5 197 100 79 9 9 Atlanta 1,047 264 51 732 484 49 417 3 15 248 38 187 5 18 Chicago 2,446 539 265 1,642 1,219 1,024 126 55 14 423 311 65 35 12 St Louis 1,513 314 78 1,121 664 412 222 22 8 457 233 165 33 26 Minneapolis 1,299 386 81 832 420 74 339 4 3 412 47 325 8 32 Kansas City . _ ._ 1,860 660 76 1,124 487 334 73 68 12 637 344 56 202 35 Dallas 951 481 63 407 282 155 98 19 10 125 56 38 22 9 San Francisco.. 557 213 69 275 194 163 12 19 81 60 15 5 1 Total 14,345 5,187 1,175 7,983 5,209 3,425 1,445 272 67 2,774 1,348 931 353 142 New England: Maine 69 38 5 26 22 15 7 4 2 2 New Hampshire 64 52 1 11 7 2 5 4 1 3 Vermont 76 42 34 31 31 3 2 1 M assachusetts __ 196 125 29 42 36 33 3 6 5 1 Rhode Island 26 12 2 12 6 2 4 6 6 Connecticut 129 53 5 71 56 37 19 15 7 8 Middle Atlantic: New York 741 437 126 178 160 156 4 18 15 3 New Jersey 364 226 51 87 69 64 5 18 15 3 Pennsylvania _ 1,073 693 82 298 274 264 10 24 23 1 East North Central: Ohio 688 244 100 344 298 292 6 46 46 Indiana 492 125 23 344 286 269 3 14 58 55 3 Illinois 847 327 77 443 372 349 13 10 71 52 13 5 1 Michigan 452 82 131 239 202 183 19 37 33 4 Wisconsin 574 105 29 440 297 193 94 8 2 143 78 61 3 1 West North Central: Minnesota 680 191 18 471 206 22 179 2 3 265 31 206 5 23 Iowa 646 108 35 503 284 204 55 13 12 219 150 32 26 11 Missouri 631 86 56 489 248 184 56 7 1 241 167 38 25 11 North Dakota 167 50 117 60 60 57 2 45 1 9 South Dakota 165 41 23 101 53 4 49 48 3 44 1 Nebraska 423 135 13 275 158 68 71 7 12 117 33 44 6 34 Kansas 674 182 21 471 183 130 53 288 119 1 168 South Atlantic: Delaware _ _ - 44 15 4 25 20 20 5 3 2 Maryland 177 63 10 104 77 75 2 27 26 1 District of Columbia- 22 9 5 8 4 4 4 4 Virginia 314 130 32 152 102 74 27 1 50 34 16 West Virginia 181 77 19 85 73 62 5 6 12 9 1 2 North Carolina 228 42 9 177 100 12 84 4 77 31 42 4 South Carolina 106 20 5 81 48 2 41 5 33 2 20 2 9 Georgia 285 52 18 215 134 8 119 7 81 8 62 11 Florida _. 169 52 4 113 74 8 63 2 1 39 12 23 4 East South Central: Kentucky 412 95 17 300 179 161 3 15 121 93 5 19 4 Tennessee.. _. 300 71 6 223 130 31 97 1 1 93 19 67 1 6 Alabama 217 66 16 135 105 2 96 7 30 3 26 1 Mississippi 205 24 2 179 102 3 96 3 77 1 68 8 West South Central: Arkansas - 216 49 7 160 98 30 64 1 3 62 17 41 1 3 Louisiana 145 29 7 109 86 4 81 1 23 1 22 Oklahoma 393 211 9 173 49 45 2 2 124 104 10 10 Texas _ 838 445 56 337 234 150 56 19 9 103 47 25 22 9 Mountain: Montana __ . 111 43 25 43 41 22 19 2 1 1 Idaho 51 18 10 23 17 15 2 6 6 Wyoming 58 26 9 23 14 14 9 7 2 Colorado 145 78 13 54 29 26 3 25 19 1 5 New Mexico.._ 41 22 5 14 7 6 1 7 7 Arizona 12 5 2 5 3 3 2 2 Utah _ 59 13 20 26 20 20 6 6 Nevada 11 6 1 4 4 4 Pacific: Washington 138 45 15 78 46 33 11 2 32 16 14 2 Oregon 73 27 7 39 20 19 1 19 16 1 1 1 California 217 100 15 102 85 70 15 17 15 2 For footnotes see page 606. 602 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DEPOSITS OF COMMERCIAL1 BANKS AND DEPOSITS OF NONMEMBER BANKS WITH CAPITAL STOCK SUFFICIENT AND INSUFFICIENT, RESPECTIVELY, TO MEET MINIMUM STATUTORY CAPITAL REQUIREMENTS FOR FEDERAL RESERVE MEMBERSHIP6, DEC. 31, 1939 [In thousands of dollars] Deposits of nonmember commercial Deposits of nonmember commercial Deposits of all commercial banks banks with sufficient capital stock banks with insufficient capital stock for Federal Reserve membership e for Federal Reserve membership • D F is e t d r e ic r t a l a R nd es e S r t v a e te I b ns a u n r k e s d Un b i a n n s k ur s ed In ba su n r k e s d Un b i a n n s k u s red Total ti N o a n - al m S em tat b e er m N em on b - ei Total L P O a i n r st L N P o a o i n r s t t L P O a i n r st L N P o a o i n r s t t Total L P O a i n r st L N P o a o i n s r t t L P O a i n s r t L N P o a o i n s r t t Boston 3, 268,478 2,102,95< 638,076 527,44c 469,33C 256, OH 213,320 58, n: 34,99: 23,116 New York 18, 717,326 7,466,82' 10,218,44( 1,032,059 981, 52S 956,87< 24,655 50, 53( 49,61i 914 Philadelphia. 3, 795,90C 2, 228, 531 1,002,845 564,526 550,836 547, 78: Z,05l 13, 69C 12,38: 1,303 Cleveland- 4, 555,277 2, 291, 51 1, 574, 622 689,142 577,671 524, 30c 52, 57i 111, 472110,942 17: 359 Richmond . 2, 626, 3O.r 1, 329, 341 621,469 675,498 481, 555 313,805 81, 51' 82,64! 3,591 193, 943 85, 567102,828 3,334 2,214 Atlanta 2,159,669 1, 507,88e 232,398 419,385 302, 655 70,881225, 70. 101 5,965 116, 730 37, 72 73,414 2,384 3,208 Chicago 8,387, 783 5,330, 775 1, 621, 6601,435,345 1,114,286 970, 381 52,492 84,07( 7,33C 321,05£ 273,18 31, 72513, 263 St. Louis..... 2,301,673 1,195, 74i 529,098 576,835 428,385 296,8H 115, 55€ 12, 30: 3,71* 148,450 87,454 52, 756 4,05C 4,190 Minneapolis.. 1,447,024 1,040, 77( 84,411 321,843 189, 225 53,16: 134,666 27: 1,12C 132,618 41, 966 79,026 7,383 4,243 Kansas City... 2, 221,174 1, 583, 21i 270, 506 367,451 154,327 18,03* 24,04J 2,58c 168,462122, 23: 7,84' 35,08C 3,302 Dallas 1, 783,097 1, 506, 758 69, 986 206,353 154, 54! 97, 609 41,496 12,41 3,028 51,804 37,71 7,936 4,74r 1,410 San Francisco.. 5,490, 632 3,974, 633 917, 694 598,305 545, 39* 508, 733 3,63C 33,03f 52,90' 48, 228 3,065 1,54: 72 Total.. 56, 754,34 31, 558,95C 17, 781, 20! 7, 414,18! 5,994,41 4, 751,174673,40: 542, 50: 27,335 1,419, 778942,006358, 77C97,4 21,528 New England: Maine 205,144 119,890 33,468 51, 78i 44,290 30, 302 13, 988 7,496 2,04- New Hampshire . 90, 746 74,032 1,383 15,33 13,002 6,97f 63S 2,329 1,635 694 Vermont 111, 670 57,800 53,87C 51,049 51,04< 2,821 2,821 Massachusetts... 2,053,154 1,488, r 377,863 187, llf 166, 509 107, 205 59, 304 20,603 16, 818 3,785 Rhode Island 323, 893 106,968 145, 63r 71, 28* 63, 987 6,556 57,431 7,301 7,301 Connecticut 643,408 318,842 79, 725 244,841 223,318 143,438 79,88C 21, 522 I2,~23C 9,292 Middle Atlantic: New York 17,094,600 6, 748,4979, 687, 74' 658, 356 636,780 617, 20C 19, 58C 21, 576 20,728 848 New Jersey.__ 1, 815, 714 872,643 575,804 367,267 342, 272 339, 710 2,562 24,995 24,929 Pennsylvania. 5,072, 5563,038, 9271, 338,491 695, 138 667,138 617,132 50, OOf 28,000 27,000 1,000 East North Central: Ohio.. 2,487, 474 1,138, 25: 1,009, 273 339,944 265,062 263, 372 1,69C 74,882 74,882 Indiana 937, 345 517, 272 98,051 322,022 265,842 255, 709 909 9,224 56,180 55, 300 Illinois. 4, 781, 6763, 508,912 875,498 397,266 361, 552 344,698 6,200 10, 654 35, 714 30,879 4,332 349 154 Michigan 1, 621, 732 877,08: 475, 764 231, 906 183, 555 48,35: 35,129 1,85: Wisconsin 957, 718 536, 46C 107,085 314,172 223, 228 173, 064 37, 752 11, 785 627 90,945 61, 656 520 101 West North Central: Minnesota 955, 749 744, 93? 14,083 196, 733 107,273 20, 700 85, 453 1,12C 89,460 29, 463 50,437 6,705 2,855 Iowa 673, 233 252, 220 100,388 320,625 167,457 127,121 23,490 10,143 6,703 153,168 .25, 70914,488 .0,183 2,788 Missouri 1, 617, 521 736, 619 630,084 250,818 180, 291 150, 598 28,021 1,370 302 70, 527 57, 968 8,052 3,236 1,271 North Dakota 76, 600 50,886 25, 714 14,448 14,448 11, 266 1,302 8,489 87 1,388 South Dakota 99, 393 61, 507 12, 202 25, 68' 14, 579 2,310 12, 269 11,105 2,404 8,163 538 Nebraska 334,964 266,001 5,50" 63,456 41, 362 20,089 17,457 1,233 2, 583 22,094 11,091 6,039 1,833 3," 131 Kansas 412, 299 245,391 23,213 143,695 69, 674 49, 779 19,895 74,021 44,167 14" 29, 707 South Atlantic: Delaware...,. 205, 246 19,145 136,806 49,295 47,769 47, 769 1,526 1,223 303 Maryland... 732,120 387, 285 144,428 200,407 179, 605 106,174 73,43 20,802 20, 739 63 Dist. of Columbia— 361, 541 210, 659 118, 232 32,650 24, 741 24, 741 7,909 7,909 Virginia 635,018 386,091 112, 745 136,182 104,972 89,497 15, 270 205 31, 210 24,057 7,153 West Virginia 296,833 163,176 63, 998 69,659 58,858 55, 359 1,725 1,774 10,801 7,460 563 2,778 North Carolina 506, 54r 114, 252 200,633 191,662 79, 687 28, 331 44,124 7,232 111, 975 28,021 83, 596 358 South Carolina...! 159,052 86,05: 10, 384 62,611 46,464 22,475 20, 398 3,591 16,147 2,282 11, 516 135 2,214 Georgia 502, 53' 338,459 70, 749 93,329 65,027 14,320 48,624 2,083 28, 302 8,424 18,151 1,727 Florida 411, 758 315, 000 13, 663 83,095 57,88" 18,104 37,935 1,848 25, 208 11,168 13,049 "991 East South Central: Kentucky 491, 696 266, 208 68,540 156, 948 120,474 110, 923 544 9,00: 36,474 33,420 817 1, 303 Tennessee 577,495 439, 252 39, 603 98,640 68,192 30,466 36,731 106 889 30,448 15,668 12,847 1,393 540 Alabama 331,671 235,344 46, 874 49,453 37, 227 33,497 2,034 12, 226 5,743 6,468 15 Mississippi 210,481 71, 541 14,215 124, 725 82,481 1,"" 77, 596 2,143 42,244 1,499 37,720 3,025 2,742 West South Central: Arkansas 200, 758 116, 217 27,126 57,415 40,682 14,800 25,498 384 16, 733 6,203 9,938 58 534 Louisiana 551,163 382,191 59, 357 109,615 89,861 14,140 75,349 372 19, 754 973 18, 781 Oklahoma 461, 299 407,112 4,912 49,275 19, 261 18, 262 581 418 30,014 27,086 1,436 1,492 Texas 1, 611,3831,409,821 46, 510 155,052 117,005 85,229 16, 704 12,416 2,~656 38,047 27,800 4,090 4,747 1,410 Mountain: Montana 149, 913 85, 392 43,891 20, 630 19, 947 10, 751 9,196 370 313 Idaho 100, 788 50,812 35,479 14,497 12,959 9,239 3,720 1,538 1,538 Wyoming 70,032 50,451 5,062 14, 519 12, 553 12, 553 1,1" "" 1,656 310 Colorado 344,493 283, 941 32, 768 27,784 16,896 15, 643 1,253 10,888 9,985 142 761 New Mexico. 66,136 52,320 2,281 11, 535 4,678 4,182 496 6,857 6,857 Arizona 91,127 63, 955 9,789 17,383 9,113 9,113 8,270 8,270 Utah 163, 566 74,804 59, 776 28, 986 24,692 24, 692 4,294 4,294 Nevada 41,010 37, 776 771 2,463 2,463 2,463 Pacific: Washington.. 494,900 438,001 25, 694 31, 205 19,063 15, 771 3,036 256 12,142 9,249 2,813 80 Oregon 313, 647 278,187 4,388 31,072 23,541 22, 947 594 7,531 7,207 252 72 California—. 4, 305, 5423,034,183 791, 262 480,097 457, 294 428, 235 29,059 22,803 21,342 1,461 For footnotes see page 606. JUNE 1940 603 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NONMEIYIBER COMMERCIAL BANKS WITH INSUFFICIENT CAPITAL STOCK TO MEET THE MINIMUM STATUTORY CAPITAL REQUIREMENTS FOR FEDERAL RESERVE MEMBERSHIP6, DECEMBER 31, 1939 [Amounts in thousands of dollars] Total nonmember commercial banks Banks operating no branches outside Banks operating branches outside with insufficient capital for Federal the head office city established after the head office city established Reserve membership • February 25, 1927 after February 25, 1927 Cap- Capital and deposits Cap- Capital and deposits Cap- Capital and deposits Federal Reserve ital on December 31, 1939 ital on December 31, 1939 ital on December 31, 1939 District and State Num- re- NTum-| re- Num- reber quired Total ber quired Total ber quired Total ba o n f ks! m b f e e o m r r - - st C o i a t c a p k - l 2 c i a a t c p a - - l p D os e- its ba o n f ks m b f e e o m r r - - s C to it a c a p k l - 2 c i a t a a p c l - - p D os e i - ts >a o n f ks m b fo e e r m r- - s C t i o t a a c p l k - c i a t a c a p - l - po D s e i - ts ship e counts3 ship 6 counts3! ship 6 3ounts; Boston 34 8,150 3,704 10, 529 58,113 22| 3, 750! 1,740 6,731 36, 500 4,400 1,964 3, 798 21, 613 New York..._ 40 8,200 7,251 9,661 50, 530 36 6, 200 6,476 8,404 42, 065 2,000 775 1,257 8, 465 Philadelphia.. 17 2,475 1,418 2,779 13, 690 17| 2,475; 1,418 2,779 13, 690 Cleveland 103 16, 625 7,712 15, 934 111,472 89 9,625 5,582 11, 975 84,8341 7,000 2,130 3,959 26, 638 Richmond 197 42,800 12, 532 27, 944 193, 943 136 11,000 5,695 13,112 70,485 31,800 6, 83714,832 123,458 Atlanta 2481 27, 750] 9,651 17, 685 116,730 219 13, 250 6, 7961 12,85; 83, 297 14, 500 2,855 4,828 33, 433 Chicago 423 119,200 21,470 36,859 321,059 216 15,700 8,251 14,908 124,799 103, 500 13,219 21,951 196, 260 St. Louis 457 35, 250 12,097 21,022 148,450 419 16,100 9,162 16, 243 111, 201 19,150 2,935 4,779 37, 249 Minneapolis. ._ 412| 31, 925 9,901 17, 721 132, 618 367 15,425 7,778 14,396 111, 238 45i 16, 5001 2,123 3,325 21, 380 Kansas City- 637 28, 5001 13, 579 25, 251 168, 462 637 28, 500 13, 579 25,251 168, Dallas 1251 8, 650 4,303 7,3061 51,834 117 6,400 3,737 6, 205 40,754 2,250 566 1,101 11,050 San Francisco.. 81 9, 9751 3,709 6,817 52, 907 70 4,725 2,341 4,187 29,095 5,250 1,5 2,630 23, 812 Total.. 2,774 339, 500 107, 327 199, 5081, 419, 778 2,345 133,150 72, 555 137,048 916,420 429206, 350 34,772 62,460 503, 358 New England: Maine 1,350 625 1,166 7,- 1,350 625 1,166 7,496 New Hampshire. _. 750 175 632 2, 3291 500 125 542 250 501 90 444 Vermont 400 286 583 2,821 100 25 57 300 261 526 2,821 Massachusetts 2,100 1,128 3,526 20, 6031 600 350 2,106 13, 280 1,500 778 1,420 7,323 Rhode Island 1,!" " " 530 1,357 7,301 800 280 761 3,772 1,000 250 3,529 Connecticut 2,450 1,383 3,939 21, 522 2,450 1,3831 3, 21, 522 Middle Atlantic- New York 18 4,300 2,274 4,186 21, 576 16 2,800 1,799 3,409 16,148 1, 500! 475 777 5,428 New Jersey 18 3, 200 4,554 4,801 24,995 17 2,700 4,254 4,321 21, 958 500 300 480 3,037 Pennsylvania 24 4, 350 2, 200 4,962 28,000 22 3,350 2,025 4,614 26, 600 1,0001 175 1,400 East North Central: Ohio 46 9,700 4,738 74, 882 36 4, 700 2,933 6,313 51, 35: 5,000 3,373 23, 525 Indiana 58 17,875 4,176 7,040 56,180 30 3,875 1,"" 2,962 23, 771 14,000 2,407 4,078 32,409 Illinois 71 3,775 2,219 4,096 35, 714 71 3,775 2,219 4,096 35, 714| Michigan 37 12,300 3, 256 5,173 36,981 16 1,800 1,042 1, 7501 9, 378 10, 500 2, 214 3,423 27, 603 Wisconsin 143 40,825 8,153 12, 219 90,945 72 5,325 2,925 4,856 37, 623 35, 500 5,228 7,363 53, 322 West North Central: Minnesota 265 12, 200 5,622 10,918 89,460 265 12, 200 5, 6221 10,918 89,460 Iowa 2191 63,300 8,220 15,785 153,168 102 4,800 2, 560 4,969] 44, 58, 500 5,660 10,816 108, 229 Missouri 241 11,150 5, 566 9,790 70, 527 241 11,150 5, 566 9,790 70, 527 North Dakota 5' 4,700 1,129 1,710 11, 266 1,200 805 1,222 7,949 3,500 324 488 3,317 South Dakota 48 3,675 1,1021 1,830 11,1051 381 1,175 847 1,451 8,572 2,500 255 379 2,533 Nebraska 11 4,550 2,175 3,74" 22,094 11 4,550 2,175 3,74' 22,094 Kansas 288 12, 225 6,005 11,392 74,021 288 12, 225 6,005 11, 392 74,021 South Atlantic: Delaware 825 443 654 1,526 825 443 654 1, 526 Maryland 2' 4,700 1, 6621 3,964 20,802 20 1,200 791 2,460 10, 287 3,500 871 1,504 10,515 Dist. of Columbia. 4 800 395 1,094 7,9091 4 800 395 1,094 7,909 Virginia 50 10, 975 2,503 4,727 31,210 32 1,975 1,055 2,053 13, 701 9,000 1,448 2,674 17, 509 West Virginia 12 2,150 1,013 1,"" 10, 801 11 1,650 963 1,781 9,777 500 50 201 1,024 North Carolina 7' 21, 650 6,141 14, 638 111,975 45 4,350 2,103 4,763 21, 668 17,300 4,038 9,875 90, 307 South Carolina 33 3,425 1,318 2,50" 16,14" 30 1,925 88r 1,929 12,04 1,500 430 578 4,103 Georgia 81 5,400 2,457 4,69 28, 302 80 4,900 2,38: 4,573 27,015 500 75 118 1,289 Florida 39 3,975 1,833 3,693 25, 208 38 3,475 1,783 3,466 24, 670 500 50 227 538 East South Central: Kentucky 121 8,925 3,251 5,921 36,474 114 5,425 2,924 5,421 32,399 3,500 32' 500 4,075 Tennessee 93 8,525 2,754 4,725 30,448 83 3,525 1,869 3,094 19,454 5,000 1,631 10,994 Alabama 1,725 888 2,025 12, 226 30 1,725 888 2, 025 12, 226 Mississippi 11, 775 3,268 5,31' 42, 244 58 2,125 1,334 2,380 18, 293 9,650 1,934 2,937 23, 951 West South Central: Arkansas 62 7,675 1,525 2, 687| 16, 733 50 1,675 1,705 6,000 636 6,873 Louisiana ___ 23 6,850 1,744 2,934 19, 754 10 350 201 392 2,543 6,500 1,543 2, 542 17,211 Oklahoma 124 4,600 2,244 4,211 30,014 124 4,600 2,244 4,211 30,01'" Texas 103 6,000 3,505 5,791 38,047 103 6,000 3,505 5,791 38,04' Mountain: Montana 50 40 88 j 50 40 88 683 Idaho 150 95 209! 1, 538 150 209 1,538 Wyoming 225 95 259 225 259 1,966 Colorado 1,350 613 1,322 io', 888 1,350 613 1,322 10,888 New Mexico. 750 310 661 6,857 200 100 185 1,787 550 210 476 5,070 Arizona 450 200 512 8,270 450 200 512| 8,270 Utah 1,850 41: 620 4, 294 350 286 1,42: 1,500 236 334 2,873 Nevada Pacific: Washinton.... 1,975 806 1,565 12,142 1,475 6061 1,211 8,74: 500 200 354 3,400 Oregon 1,900 662 989 7,53 900 488 681 4, 764 l,00C 174 308 2,767 California 3,850 1,634 3,184 22, 803 1,850 976 1,800 12, 63C 2,00C 658 1,384 10,173 For footnotes see page 606. 604 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NUMBER OF NONMEMBER COMMERCIAL BANKS WITH SUFFICIENT CAPITAL STOCK TO MEET THE MINIMUM STATUTORY CAPITAL REQUIREMENTS FOR FEDERAL RESERVE MEMBERSHIP, CLASSIFIED ACCORDING TO AMOUNT OF DEPOSITS6, DECEMBER 31, 1939 Number with deposits of— Federal Reserve District nu T m ot b a e l r4 Under $100,000- $250,000- $500,000- $1,000,000- $2,000,000- $5,000,000- $10,000,000- $50,000,000- $100,000 249,000 499,000 999,000 1,999,000 4,999,000 9,999,000 49,999,000 and over Boston 141 3 4 9 29 32 45 10 7 1 New York.. ... 224 1 5 22 48 60 49 17 18 3 Philadelphia 225 2 16 35 48 61 40 7 13 Cleveland __ __ ,. 475 2 70 147 108 78 52 9 6 Richmond 394 9 83 109 100 60 19 7 7 Atlanta ._ _ 484 17 140 154 104 45 18 2 2 Chicago _ ... _ 1,219 9 245 482 272 113 68 19 9 1 St. Louis 664 19 183 209 167 55 19 4 3 Minneapolis _ _ „ 420 17 114 160 100 22 4 1 Kansas City 487 26 193 175 65 22 4 2 Dallas .. 282 22 78 97 56 20 5 4 San Francisco 194 1 34 63 40 16 18 3 7 2 Total _ 5,209 128 1,165 1,662 1,137 584 341 85 72 7 Insured banks on par list- _ 3,425 50 652 1,044 760 469 306 78 58 6 Uninsured banks on par list 272 20 54 71 44 17 20 6 13 1 Insured banks not on par list 1,445 53 430 533 318 95 14 1 1 Uninsured banks not on par list- 67 5 29 14 15 3 1 Total 5,209 128 1,165 1,662 1,137 584 341 85 72 7 NUMBER OF NONMEMBER COMMERCIAL BANKS WITH INSUFFICIENT CAPITAL STOCK TO MEET THE MINIMUM STATUTORY CAPITAL REQUIREMENTS FOR FEDERAL RESERVE MEMBERSHIP, CLASSIFIED ACCORDING TO AMOUNT OF DEPOSITS6, DECEMBER 31,1939 Number with deposits of— Federal Reserve District number5 Under $100,000- $250,000- $500,000- $1,000,000 $100,000 249,000 499,000 999,000 and over Boston__ __ . _ __ _ 34 1 2 7 20 New York 40 1 3 5 26 Philadelphia- _ _ 17 3 1 9 4 Cleveland 103 1 20 12 25 44 Richmond 197 11 47 49 44 44 Atlanta . _ 248 54 85 38 34 37 Chicago 423 13 82 112 110 103 St. Louis ._ _ __ 457 111 202 66 45 33 Minneapolis 412 44 213 94 39 22 Kansas City 637 185 284 84 48 33 Dallas 125 30 43 17 19 16 San Francisco 81 9 27 9 19 15 Total 2,774 460 1,008 492 397 397 Insured banks on par list 1,348 124 386 238 281 318 Uninsured banks on par list _ _ 353 125 123 48 16 22 Insured banks not on par list. 931 144 446 190 95 56 Uninsured banks not on par list 142 67 53 16 5 1 Total . _ 2,774 460 1,008 492 397 397 NUMBER OF NONMEMBER COMMERCIAL BANKS WITH INSUFFICIENT CAPITAL STOCK TO MEET THE MINIMUM STATUTORY CAPITAL REQUIREMENTS FOR FEDERAL RESERVE MEMBERSHIP, CLASSIFIED ACCORDING TO AMOUNT OF CAPITAL STOCK6, DECEMBER 31,1939 Number with capital stock 2 of— Total Federal Reserve District number Under $15,000- $25,000- $50,000- $100,000- $15,000 24,900 49,900 99,900 199,900 Boston 34 1 4 8 17 New York _ 40 7 25 Philadelphia 17 1 1 . 1 5 9 Cleveland _ _ 103 21 15 39 25 Richmond 197 16 47 43 53 29 Atlanta .. ... _ 248 31 112 32 50 20 Chicago _ _ 423 28 106 107 116 58 St. Louis 457 120 229 44 41 22 Minneapolis 412 108 216 42 36 Kansas City 637 242 275 49 53 Dallas 125 14 61 23 18 San Francisco 81 12 33 8 14 Total 2,774 573 1,101 368 440 Insured banks on par list _ _ _ _ _ . 1,348 164 417 236 316 Uninsured banks on par list __ ___ _ __ 353 133 125 18 33 Insured banks not on par list 931 212 491 109 87 Uninsured banks not on par list 142 64 68 5 4 Total 2,774 573 1,101 368 440 OO 00 O• $200,000 and over 4 8 3 9 3 8 1 2 13 1 253 39 188 27 43 1 21 11 1 253 39 For footnotes see page 606. JUNE 1940 605 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

COMMERCIAL BANKS ELIGIBLE AND INELIGIBLE FOR FEDERAL RESERVE MEMBERSHIP Footnotes to tables appearing on pages 602-605. 1 Comprises national banks, State member banks, other State banks, Morris Plan and other industrial banks, and trust companies (a few of which have no deposits). Does not include 551 mutual savings banks, 63 private banks, 10 branches of foreign banks, 44 cash depositories (in South Carolina), and 21 inactive banks and miscellaneous financial institutions sometimes included in State banking statistics. 2 Including capital notes and debentures sold to the Reconstruction Finance Corporation. 3 Capital stock, surplus, undivided profits, and reserves. 4 These totals include, and the distribution by amount of deposits excludes, 28 banks with no deposits or for which deposit figures were not available. 5 These totals include, and the distribution by amount of deposits excludes, 20 banks with no deposits or for which deposit figures were not available. 6 The amounts of capital required for Federal Reserve membership are set forth in Regulation H. The following selected paragraphs are taken from that regulation: A State bank, other than a mutual savings bank, must possess a paid-up, unimpaired * capital sufficient to entitle it to become a national banking association in the place where it is situated under the provisions of the National Bank Act, except in the following circumstances, in which case such a bank may be admitted to membership with a lesser capital as indicated: Any such institution organized prior to June 16, 1933 (the date of the approval of the Banking Act of 1933) situated in a place the population of which does not exceed 3,000 inhabitants and at the time of admission having a capital of not less than $25,000; Any such institution (whether or not organized prior to June 16, 1933) situated in a place the population of which does not exceed 3,000 inhabitants and which at the time of admission is entitled to the benefits of insurance under section 12B of the Federal Reserve Act and has a capital of not less than $25,000. The minimum capital required for the organization of a national bank, referred to hereinbefore in connection with the capital required for admission to membership in the Federal Reserve System, is as follows: If located in a city or town with a population Not exceeding 6,000 inhabitants $ 50,000 Exceeding 6,000 but not exceeding 50,000 inhabitants 100,000 Exceeding 50,000 inhabitants (except as stated below) 200,000 In an outlying district of a city with a population exceeding 50,000 inhabitants; provided State law permits organization of State banks in such location with a capital of $100,000 or less 100,000 Before any nonmember State bank having a branch or branches established after February 25, 1927, beyond the corporate limits of the city, town, or village in which the bank is situated is admitted to membership in the Federal Reserve System, it must obtain the approval of the Board for the retention of such branches J and any provisions contained in this section of this regulation which by their terms relate to the establishment or retention of branches by member State banks are equally applicable to the retention by a nonmember State bank applying for membership and having any branches previously established. * * * a member State bank which establishes a branch beyond the corporate limits of the city, town, or village in which it is situated must have a paid-in and unimpaired capital stock of not less than $500,000, except that, in a State with a population of less than 1,000,000, and which has no city located therein with a population exceeding 100,000, the capital stock shall be not less than $250,000, and except that, in a State with a population of less than 500,000, and which has no city located therein with a population exceeding 50,000, the capital stock shall be not less than $100,000. In any such case, the aggregate capital stock of the member State bank and its branches shall at no time be less than the aggregate minimum capital stock required by law for the establishment of an equal number of national banking associations situated in the various places where such member State bank and its branches are situated. * Section 345 of the Banking Act of 1935 provides in part that: "If any part of the capital of a national bank, State member bank, or bank applying for membership in the Federal Reserve System consists of preferred stock, the determination of whether or not the capital of such bank is impaired and the amount of such impairment shall be based upon the par value of its stock even though the amount which the holders of such preferred stock shall be entitled to receive in the event of retirement or liquidation shall be in excess of the par value of such preferred stock. If any such bank or trust company shall have outstanding any capital notes or debentures of the type which the Reconstruction Finance Corporation is authorized to purchase pursuant to the provisions of section 304 of the Emergency Banking and Bank Conservation Act, approved March 9, 1933, as amended, the capital of such bank may be deemed to be unimpaired if the sound value of its assets is not less than its total liabilities, including capital stock, but excluding such capital notes or debentures and any obligations of the bank expressly subordinated thereto." 606 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ALL MEMBER BANKS-CONDITION ON SELECTED CALL DATES MARCH 4, 1935, TO MARCH 26, 1940 [Amounts in thousands of dollars] 1935 1936 1937 1938 1939 1939 1940 March 4 March 4 March 31 March 7 March 29 Dec. 30 March 26 Assets Loans (including overdrafts) 1 . 11, 953,152 12,098, 516 13, 699, 294 13, 546, 245 13,047, 275 13, 961, 820 13, 939, 408 United States Government direct obligations 9, 820, 993 10, 564,400 10, 856, 351 10,625, 221 10, 690, 610 11,184,195 11, 313, 710 Obligations guaranteed by United States Government-. 1,199, 664 1, 879, 722 1,861, 336 1, 826, 966 2, 660,145 3,143, 960 3,107,056 Obligations of States and political subdivisions 2,016, 709 2, 270, 099 2, 350, 032 2, 208, 781 2, 554, 651 2, 691, 687 2, 904,862 Other bonds, notes, and debentures, including obligations of Government corporations and agencies not guaranteed by United States ! 2 2, 756, 402 2,971,585 3,215,554 2, 768,800 2, 687, 973 2, 519, 369 2, 464, 916 Corporate stocks (including Federal Reserve bank stock) 524, 530 503, 666 542, 436 545,156 454, 331 439, 477 433,105 Total loans and investments L— 28,271, 450 30,287, 988 32, 525,003 31,521,169 32,094, 985 33,940,508 34,163, 057 Reserve with Federal Reserve banks. _ 4, 517, 625 5, 784,077 6, 613,340 7, 248, 811 9,112, 434 11, 603, 504 12, 279,162 Cash in vault _._. 534, 293 623, 518 662, 310 603, 541 776, 978 841, 215 862,162 Demand balances with banks in United States (except) private banks and American branches of foreign banks). 3, 266,060 3, 813,065 3, 312, 519 3, 461, 582 4, 280, 654 5, 370, 257 5, 499, 427 Other balances with banks in United States and foreign countries 2 . 6 255, 524 213, 532 185,494 181, 263 168,179 159,908 157, 902 Due from own foreign branches 38,083 3,000 3,787 2,326 3,551 7,827 3,400 Cash items in process of collection 7 1,474, 792 1, 718, 306 1, 973, 621 1, 406, 710 1, 481, 467 1, 807, 370 1, 561, 722 Bank premises owned and furniture and fixtures.... 1,003,788 998, 653 '"1,712 971,875 941, 876 924, 273 922,049 Other real estate owned 324, 369 371, 344 341,875 314,835 287, 709 271, 712 Investments and other assets indirectly representing bank premises or other real estate i 146, 451 130, 774 132, 005 Customers' liability on acceptances 217, 545 167, 534 202, 067 134, 473 106, 764 107, 543 97,936 I O n t c h o e m r e a s a s c e c t r s u .. ed but not yet collected 362,026 252, 460 226, 756 252, 212 ' k 1 1 1 0 1 5 , , 0 3 9 9 7 7 1 7 0 9 0 , , 9 1 0 5 2 9 1 17 0 7 5 , , 0 4 6 4 1 2 Total assets.. 40,265, 555 44, 233, 477 47, 055, 477 46,125,837 49, 644, 668 55, 360, 949 56,233,037 Liabilities Demand deposits—Total 24,008, 376 28,021, 554 29,950,160 28, 652,321 32,051, 080 37, 487, 815 38,197, 036 Individuals, partnerships, and corporations 14, 872,114 17,927,045 20,084, 779 19,116, 334 20, 845, 004 24, 603, 982 24,965,017 United States Government3 1, 269, 713 599, 587 414, 722 752,141 774, 701 742, 566 725, 496 States and political subdivisions 1, 861, 412 2,173,455 2, 564, 303 2, 236, 537 2, 466, 695 2, 321,334 2, 498, 759 Banks in United States and foreign countries 2 5, 264, 483 6, 542,170 6, 209, 707 5, 980,911 7, 431,195 9, 256, 645 9, 449, 292 Certified and officers' checks, cash letters of credit and travelers' checks, etc. 740, 654 779, 297 676, 649 533, 485 563, 288 558, 472 Time deposits—Total 10, 045,297 10,451, 894 11,164,318 11, 594,357 11, 615, 416 11, 852,337 11,980,466 Individuals, partnerships, and corporations 2 9, 203,139 9, 783,716 10, 639,144 10, 845,173 10, 939, 547 11, 215,109 11, 367, 680 Postal savings 3 399,113 167,114 97, 371 89, 588 68, 276 51, 330 51, 924 States and political subdivisions 290,033 343,873 268, 739 512,129 461,156 432,173 411, 210 Banks in United States and foreign countries 2 153,012 157,191 159, 064 147, 467 146, 437 153, 725 149, 652 Total deposits 34,053, 673 38,473,448 41,114,478 40,246, 678 43,666, 496 49,340,152 50,177,502 Due to own foreign branches 957 70,831 84,142 129, 332 151,175 150, 938 142, 555 Bills payable, rediscounts, and other liabilities for borrowed money 24, 683 24, 269 23, 613 32, 866 7,455 3,241 2,247 Acceptances outstanding 235,166 183, 582 226,089 145, 231 120, 768 123, 755 108, 670 Dividends declared but not yet payable 4 12, 674 16, 830 33, 216 17, 762 30, 951 37, 968 30, 500 Income collected but not yet earned 48,168 56, 310 60, 492 Expenses accrued and unpaid 831,093 282, 292 249, 264 202,121 92, 205 68, 690 88, 916 Other liabilities. 60, 381 58,136 60, 479 Total liabilities. 35,158, 246 39, 051,252 41, 730, 802 40, 773, 990 44,177,599 49, 839,190 50, 671, 361 Capital Accounts Capital 2, 679, 659 2, 621, 711 2,454, 266 2, 427,058 2, 394,184 2, 363, 229 2, 348, 205 Surplus 1 1, 654, 606 1, 721, 348 1, 952,805 2,020, 279 2,096, 664 2,166, 392 2,179, 505 Undivided profits 4 419, 272 493,141 580,907 611, 508 670, 798 674, 734 714, 549 Reserves for contingencies and other capital accounts 2... 353, 772 346,025 336, 697 293, 002 305, 423 317, 404 319, 417 Total capital accounts 5,107, 309 5,182,225 5,324, 675 5,351,847 5,467, 069 5, 521, 759 5, 561, 676 Total liabilities and capital accounts 40,265,555 44,233,477 47,055, 477 46,125, 837 49, 644, 668 55, 360, 949 56,233,037 Net demand deposits subject to reserve 19, 508, 098 22, 498, 578 24, 668, 338 23, 789,968 26, 301,964 30, 325, 868 31,159, 647 Demand deposits—adjusted 5 15,999,388 19,161, 491 21, 352,110 20, 512, 559 22, 363, 717 25, 681, 234 26, 460, 526 6,422 6,377 6,367 6, 335 6,331 6,362 6,377 Number of banks 1 Figures of loans and investments beginning December 31, 1938 are not entirely comparable with prior call dates because investments and other assets (principally loans) indirectly representing bank premises and other real estate are now reported separately. Such investments and other assets amounted to $94,569,000 and $49,939,000, respectively, on December 31, 1938. 2 This is a combination of two or more items shown separately on June and December call dates. 3 United States Treasurer's time deposits, open account, are combined with postal savings (time) deposits. 4 Reserves for dividends payable in common stock, $5,544,000 on December 31, 1938, were formerly published as part of undivided profits. Reserves for undeclared cash dividends on capital stock and for accrued interest on capital notes and debentures, $10,691,000 on December 31, 1938, were formerly reported in combination with dividends declared but not yet payable. Beginning December 31,1938 these two reserves are included in "Other capital accounts." s Demand deposits other than interbank and United States Government, less cash items reported as in process of collection. 6 Balances with private banks and American branches of foreign banks were not reported separately on this date and are included in "Other assets." 7 Includes some cash items not in process of collection. JUNE 1940 607 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ALL MEMBER BANKS-CONDITION ON MARCH 26,1940 BY CLASSES OF BANKS [Amounts in thousands of dollars] m b e a A m n l k b l s er n m b a e a t A m i n o l k b n l s e a r l A m b l e l a m n S k b ta s e t r e Ce m n e t m ra b l e re r s b e a rv n e k s c l ity m Re e c s m i e ty b rv e e r C m b o a e u m n n k b t s r e l y r New York Chicago Assets Loans (including overdrafts) 13, 939,408 9, 038, 281 4,901,127 3, 211,095 564,172 5, 304, 505 4,859, 636 United States Government direct obligations 11,313,710 7,063, 908 4, 249,802 3, 685, 522 1,180,194 4,106, 618 2,341, 376 Obligations guaranteed by United States Government-_. 3,107,056 1, 891,018 1, 216,038 1, 286,161 138, 954 962, 874 719,067 Obligations of States and political subdivisions 2, 904, 862 1,917, 214 987, 648 725, 635 174, 725 928, 460 1,076,042 Other bonds, notes, and debentures, including obligations of Government corporations and agencies not guaranteed by United States 2 2, 464, 916 1, 674, 256 790, 660 526, 998 136, 994 699, 612 1,101,312 Corporate stocks (including Federal Reserve bank stock). 433,105 217,862 215, 243 158, 950 27,146 150,868 96,141 Total loans and investments 34,163,057 21,802,539 12,360,518 9,594,361 2,222,185 12,152,937 10,193,574 Reserve with Federal Reserve banks 12, 279,162 6, 948,128 5,331,034 6, 385, 822 908, 760 3, 336, 320 1, 648, 260 Cash in vault 862,162 622,890 239, 263 83, 786 25,186 364,479 388, 711 Demand balances with banks in United States (except private banks and American branches of foreign banks).. 5, 499, 427 4, 250, 215 1,249, 212 160,139 181, 812 2, 572, 350 2, 585,126 Other balances with banks in United States and foreign countries 2 157,902 114, 511 43, 391 16,238 14, 538 65,175 61,951 Due from own foreign branches 3,400 2,590 810 810 2,590 Cash items in process of collection _ 1, 561, 722 985, 523 576,199 568,419 109,161 670, 953 213,189 Bank premises owned and furniture and fixtures 922,049 323, 990 205, 640 20,181 319, 427 376,801 Other real estate owned 271, 712 127, 651 144,061 28, 444 4,197 96, 577 142, 494 Investments and other assets indirectly representing bank premises or other real estate 132,005 66, 980 65,025 11, 437 831 91, 645 28, 092 Customers' liability on acceptances 97, 936 52,118 45, 818 68, 567 3,513 24,079 1,777 Income accrued but not yet collected 105,442 63,485 41, 957 34, 066 9, 263 43, 522 18, 591 Other assets 177,061 38, 613 138, 448 16, 421 6,966 29, 561 124,113 Total assets 56,233,037 35, 673, 311 20,559, 726 17,174,150 3, 506, 593 19, 769, 615 15, 782, 679 Liabilities Demand deposits—Total 38,197, 036 23, 699, 938 14, 497,098 14, 495, 291 2,737,097 13,082,506 7,882,142 Individuals, partnerships, and corporations 24, 965,017 15,117,711 9,847,306 9, 652,110 1, 502, 646 7, 978, 343 5, 831, 918 United States Government3 725, 496 525, 913 199, 583 68, 284 79, 651 430, 518 147,043 States and political subdivisions 2, 498, 759 1,804, 798 218, 541 133,103 942,025 1, 205,090 Banks in United States and foreign countries 2 9, 449, 292 5, 925, 638 3, 523, 654 4, 296, 213 1,004,097 3, 581,427 567, 555 Certified and officers' checks, cash letters of credit and travelers' checks, etc 558,472 325,878 232, 594 260,143 17, 600 150,193 130, 536 Time deposits—Total 11,980, 466 8,241,100 3, 739,366 782, 833 498,162 4, 727, 566 5,971,905 Individuals, partnerships, and corporations 2 11,367,680 7, 767,615 3, 600,065 741, 601 482, 467 4, 386,178 5, 757, 434 Postal savings 3 51,924 41, 669 10, 255 4,500 12, 269 35,155 States and political subdivisions 411, 210 327, 753 83,457 35,176 11,195 214, 290 150, 549 Banks in United States and foreign countries 2 149, 652 104,063 45, 589 6,056 114, 829 28, 767 Total deposits 50,177,502 31,941,038 18,236, 464 15,278,124 3,235,259 17, 810,072 13, 854, 047 Due to own foreign branches 142, 555 111, 055 31, 500 142, 555 Bills payable, rediscounts, and other liabilities for borrowed money 2,247 1,794 453 127 2,120 Acceptances outstanding 108, 670 58,325 50, 345 75, 313 3,622 27, 877 1,858 Dividends declared but not yet payable 30, 500 17, 206 13, 294 12, 228 1,380 14, 429 2,463 Income collected but not yet earned 60, 492 40,762 19, 730 10, 206 1,960 30,095 18, 231 Expenses accrued and unpaid 88, 916 54,076 34, 840 16, 850 10, 841 40,056 21,169 Other liabilities 60, 479 19, 451 41,028 37, 498 716 14, 219 8,046 Total liabilities 50, 671,361 32,243, 707 18, 427, 654 15,572, 774 3,253,778 17, 936,875 13, 907, 934 Capital Accounts Capital 2, 348, 205 1, 521,173 827,032 548, 476 101, 500 783, 707 914, 522 Surplus 2,179, 505 1, 223, 268 956, 237 814, 610 87, 260 677, 630 600,005 Undivided profits 714, 549 474, 678 239,871 179, 605 31, 476 245, 963 257, 505 Reserves for contingencies and other capital accounts 2 319, 417 210,485 108, 932 58, 685 32, 579 125,440 102, 713 Total capital accounts . 5,561, 676 3, 429, 604 2,132,072 1, 601,376 252,815 1,832, 740 1,874,745 Total liabilities and capital accounts 56,233, 037 35, 673,311 20,559,726 17,174,150 3,506,593 19, 769,615 15,782,679 Net demand deposits subject to reserve 31,159,647 18,480,038 12, 679, 609 13, 766, 733 2,447, 743 9, 845, 386 5,099, 785 Demand deposits—adjusted 4 26, 460, 526 16, 262, 864 10,197, 662 9, 562, 375 1, 544,188 8, 399, 608 6, 954, 355 6,377 5,178 1,199 36 13 345 5,98 Number of banks 1 Excluding member banks in outlying sections of some cities authorized to carry lower reserves. 2 This is a combination of two or more items shown separately on June and December call dates. 8 United States Treasurer's time deposits, open account, are combined with postal savings (time) deposits. 4 Demand deposits other than interbank and United States Government, less cash items reported as in process of collection. 608 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTERNATIONAL FINANCIAL STATISTICS PAGE Gold reserves of central banks and governments. . . 610 Gold production 611 Gold movements . 611-612 International capital transactions of the United States . . 613-617 Central banks . 618-621 Bank for International Settlements... 622 Money rates 622 Discount rates of central banks 623 Commercial banks . 623-624 Foreign exchange rates. . . 625 Price movements: Wholesale prices 626 Retail food prices and cost of living . 627 Security prices 627 Tables on the following pages include the principal available statistics of current significance relating to gold, international capital transactions of the United States, and financial developments abroad. The data are compiled for the most part from regularly published sources such as central and commercial bank statements and official statistical bulletins; some data are reported to the Board directly. Figures on international capital transactions of the United States are collected by the Federal Reserve Banks from banks, bankers, brokers, and dealers in the United States in accordance with the Treasury Regulation of November 12, 1934. Back figures may in most cases be obtained from earlier BULLETINS and from Annual Reports of the Board of Governors for 1937 and earlier years. Daily and monthly press releases giving daily and monthly average foreign exchange rates will be sent without charge to those wishing them. Other data on the following pages are not regularly released prior to publication. JUNE 1940 609 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS [In millions of dollars] Countries in Tripartite Accord Other countries Total i Switzerland End of month c tr o ( i 5 u e 2 s n ) - U S n ta it t e e d s U K d n i o i n t m g ed - France g B iu e m l- * N la e e n r t d - h s - ti N on a a - l 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 Bank 1934—December. 21,051 8,238 1,584 5,445 573 624 403 275 134 20 1935—December. 21,604 10,125 1,648 4,395 611 438 454 444 276 189 20 1936—December. 22,630 11,258 2,584 2,996 632 400 655 601 275 188 20 1937—December. 23, 964 12,760 2,689 2,564 597 930 648 469 274 184 30 1938—December. 25,468 14, 512 2,690 2,435 581 995 699 431 274 102 30 1939—April. 24,944 15, 791 1,066 2,574 520 834 428 274 212 30 May 25,119 15,957 1,067 2,574 524 823 428 274 214 30 June 25,270 16,110 1,067 2,574 540 800 428 274 213 30 July 25,492 16, 238 1,162 2,574 573 769 595 427 274 212 30 August 26,097 16, 646 1,162 2,714 614 769 585 431 274 218 30 September. 25, 234 16,932 1 2,714 615 752 585 449 274 218 30 October 25, 303 17,091 2,714 611 754 579 449 274 212 November. 25, 513 17, 358 2,714 608 700 559 453 274 213 December 25, 702 17,644 2,714 609 690 547 466 274 214 30 1Q40—January... 25, 909 17, 931 2,714 609 690 535 466 274 211 30 February.. P26, 200 18,177 2,714 609 690 525 472 274 213 30 March , 698 18, 433 2,000 690 519 482 274 211 30 April , 006 18, 770 P2, 000 P650 514 P482 P274 212 P30 Other countries—Continued End of month lo C m o b - ia C v z s a e l k c o h i - a o- m D a e r n k - Egypt m G a e n r- y1 Greece H ga u r n y - Italy* 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 55 518 394 61 10 06 1935—Dec-_ 112 55 270 425 84 20 84 1036—Dec. _ 91 55 20S 463 08 20 75 1937—Dec. . 92 55 210 261 82 20 83 1938—Dec. _ 83 55 193 164 04 20 86 1939—April- 66 55 193 164 107 10 84 May.. 65 55 193 164 107 10 84 June- 62 55 193 164 107 10 84 July... 55 193 164 107 10 84 Aug. __ 55 193 164 107 20 84 Sept... 55 193 164 107 20 84 Oct.— 55 193 164 103 19 Nov.— 55 193 164 103 19 Dec... 55 144 164 90 94 c20 1940—Jan.... 55 144 164 90 84 <=20 Feb.... 55 144 164 90 P20 Mar... P55 137 164 90 P20 Apr P55 137 164 ?90 P20 Government sold reserves1 not included Other countries—Continued in previous figures for 52 countries End of month Po g r a t l u- Ru n m ia a- A So fr u ic th a Spain i 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 - O t c r o i t e u h s n e * 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 m t g ed - France g B iu e m l- 1934—Dec . 104 184 740 150 161 1 1 9 9 3 3 5 4 — — D D e e c c . . 5 3 3 1 1035—Dec. 109 212 735 186 168 1936—Dec. »934 03 1 1 1 0 0 9 3 3 3 8 6 7 — — — D D D e e e c c c . . . 1 1 1 3 2 1 3 0 4 2 2 1 0 2 8 3 0 9 7 5 7 2 1 1 5 8 8 2 2 3 4 2 4 0 1 4 1 1 1 8 8 4 3 5 3 1 19 9 3 3 8 7 — — M De ar c . . . 1 1 1 , , 4 3 8 9 9 5 81 June. 62 1039—April 135 218 525 339 126 Sept.. 750 May- 136 218 525 344 126 Oct... «103 June. 137 219 525 346 134 Nov.. 130 July. 137 219 525 348 135 Dec 80 331 44 Aug.. 148 222 525 355 136 1939—Jan... .8 381 S O e c p t. t _ . 1 1 4 5 9 0 •2 2 3 4 4 3 5 52 2 5 5 3 33 5 2 7 68 1 1 3 5 1 6 Feb.. ~154" 4 5 6 5 5 0 Nov. 151 254 525 333 156 Mar.. 1,732 455 Dec. 152 249 525 308 151 May_ 477 June. ~~85' 17 1940—Jan.. 152 253 525 258 C139 July. Feb.. 153 268 525 218 P68 P150 Sept. 164 Mar. 153 272 525 173 P68 P151 Dec 156 Apr.. 154 279 525 179 P68 P152 P Preliminary. c Corrected. i Reported at infrequent intervals or on de- 1 Data reported monthly incomplete. For additional data see section at end of table. layed basis: U. S.—Exchange Stabilization Fund 2 Figure for Dec 1939 officially reported and carried forward. (Special A/c No. 1); U. K.—Exchange Equaliza- 3 Figure for May 1939 officially reported and carried forward. tion Account; France—Exchange Stabilization 4 Figure for Dec. 1938 officially reported and carried forward through Nov. 1939; figure for Fund and Rentes Fund; Belgium—Treasury. Dec. 1939 officially reported and carried forward through Feb. 1940; figure for Mar. 20, 1940, offici-Gold in Swiss and Dutch Funds and in some ally reported and carried forward. other central reserves not reported. « Figure for Aug. 1, 1936, officially reported and carried forward through Mar. 1938; Apr. 1938 i Figure for Mar. 1937, first date reported. figure officially reported and carried forward. » Figure for Sept. 1937. « These countries are: Albania, Algeria, Australia, Austria through Mar. 7,1938, Belgian * First date reported. Congo, Bolivia, China, Danzig through Aug. 31, 1939, Ecuador, El Salvador, Estonia, «Transferred: from Bank to Account, $1,648, Guatemala, Finland, Latvia, Lithuania, Morocco, and Thailand (Siam). 000,000 on Jan. 6, and $1,162,000,000 on Sept. 6, NOTE.—For back figures and description of table see BULLETIN for June 1933, pp. 368-372, 1939; from Account to Bank, $26,000,000 on Mar. and July 1936, pp. 544-547; also see footnotes to table in BULLETIN for August 1936, p. 667, and 1 and $94,000,000 on July 12, 1939. December 1937, p. 1262. 610 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

GOLD PRODUCTION Outside U.S.S.R. [In thousands of dollarsl Estimated Production reported monthly world Year or month pr t o io d n u o- ! Africa North and South America Other U o .S ut . s S i . d 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 lg ng ia o n U St n a i t t e ed si Canada Mexico Co b l i o a m- Chile Au l s ia tra- B I r n i d ti i s a h $1=95-8/10 grains of gold 9/10 fine; i. e., an ounce of fine gold=$t0.67 1929.. 382, 532 352,237 215,242 11, 607 4,297 2,390 45,651 39,862 13,463 2,823 683 8,712 7,608 1930.. 401,088 365,258 221, 526 11,476 4,995 2,699 47, 248 43,464 13,813 3,281 428 9,553 6,785 1931.. 426,424 386,293 224,863 11,193 5,524 3,224 49, 527 56,687 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 14,663 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 =15-5/tl grains of gold 9/10 fine; i. e.t an ounce of fine gold=SS5 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 11,716 1934., 823,003 707,288 24,264 12,153 6,549 108,191 104,023 23,135 12,045 8,350 30,559 11, 223 1936.. 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, 576 892, 535 410, 710 28, 296 20,784 8,018 168,159 143,367 29, 591 15,478 9,544 46,982 11, 607 1938. 1,132, 866 957, 212 425, 649 28,532 24,670 8,470 178,143 165,379 32,306 18, 225 10,290 54,264 11, 284 1939. 1, 204,954 1,018,319 448, 753 28,009 28, 515 8,759 195, 298 178, 225 32,300 19,951 11, 376 56,127 11,008 1939—February... 90,919 76,810 34,505 2,069 2,221 13,214 13,684 3,421 1,562 568 4,016 868 March 97,687 82,717 37, 558 2,2Q2 2,346 767 14,424 14, 498 2,542 1,752 1,198 4,492 938 April.. 94,600 79,789 35,613 2,252 2,349 729 15,320 14,238 1,733 1,513 4,301 912 May 98,545 83,476 37,970 2,355 2,323 779 15,227 15,133 1,794 1,614 4,649 936 June 99, 511 83,602 37,065 2,277 756 14,520 15,287 3,216 1,551 4,684 910 July 102,822 87,150 37,952 2,395 2,395 739 16,159 15,402 3,638 1,551 1,583 4,399 936 August 107, 257 91,415 38,494 2,431 2,379 731 16,856 15,722 6,519 1,735 777 4,849 September.. 106,867 89,930 37,817 2,442 2,432 705 19,637 14, 752 2,302 1,803 1,012 6,140 October 107,138 90,889 38,459 2,452 2,479 715 21, 693 15,144 1,832 1,677 1,111 4,392 November. 103, 527 87, 372 38, 600 2,425 2,497 686 17,421 14,818 2,333 1,873 934 4,881 .903 December.. 101, 289 84,948 38, 534 2,330 2,589 709 15,845 15,151 1,209 1,367 1,044 5,246 925 1940—January... P104,877 *88, 773 39,777 2,384 2,662 739 16, 972 14,853 3,078 1,958 4,486 891 February.. P97, 912 *81, 624 38, 575 P2, 345 2,667 728 13, 317 14,188 Pl, 890 1, 633 P4, 416 P891 March P102, 860 P86, 460 40,162 *2, 345 P2, 717 732 16, 217 P14, 188 PI, 890 1,717 P4, 626 Gold production in XI. 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 $S5 per fine ounce: 1933, $95 1934, $135; 1935, $158; 1936, $185; 1937, $180; 1938 (preliminary), $184. * Preliminary. ^Includes Philippine Islands production received in United States. NOTE.—For monthly figures back to January 1929 and for explanation of table see BULLETIN for March 1939, p. 227; February 1939, p.r 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, and 1939, p. 106. 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: Y m e o a n r th or i e m o x r n p p e n o o t e r r t t t s s U K d n i o i n m t g e - d France g B iu e m l- N la e e n r t d - h s - S d w en e- S l w a e n r i - d tz- C a a d n a - M ic e o x- Co b l i o a m- P Is p h l i i a n l n i e p d - s A tra u l s i - a A So fr u ic th a Japan B I r n i d ti i s a h c o t o A r th i u e l e n l s r - 1934 i 1,131,994 499,870 260,223 8,902 94,348 12,402 1935 1,739,019 315,727 934,243 3 227,185 968 1936 1,116, 584 174,093 573, 671 3,351 71,006 7,511 1937 1, 585, 503 891, 531-13,710 90,859 6,461 54,452 1938 _ 1,973, 5691, 208, 728 81,135 15,488 163,049 60,146 1939 _ 3, 574,1511,826,403 3,798 165,122 341, 618 28, 715 1939 • •• ••" Feb 223, 281 165,377 1,400 Mar 365,384 250,042 816 37,179 Apr _ 605,797 384,925 21 84,603 May 429,404 302,667 3 41,651 June 240,430 128,196 2 July 278, 636 177,805 1 Aug 259,921 163, 738 2 Sept 326,074 162,450 86 1 Oct 69, 726 10,182 Nov 167,980 18, 556 28 Dec 451,172 10,417 1940 Jan.._.. 236,391 23,906 59 Feb. 201,422 21,321 40 974 Mar 459,827 35,268 35 Apr 249,851 43, 567 OC 86,829 30,270 16,944 12,038 1,029 12 95,171 13, 667 10,899 15,335 3,498 65 72,648 39,966 11,911 21, 513 2233',,2:80 8 111,480 38,482 18, 397 25; 427 34,713 181 246,464 76,315 36,472 10, 557 27,880 39,162 401 168,740 612,949 33,610 23, 239 35, 636 74,250 22,862 165,605 29,256 3,840 4,220 2,496 2,719 3,953 5,446 27,098 8,227 6,852 3,822 4,234 3,326 4,303 10 11,410 44,564 65,680 7,665 1,649 2,114 2,179 4,844 100 5,528 40,449 2,284 12.066 2,050 2,117 2,594 5,295 41 10,931 55,081 5,644 17,191 3,280 2,107 3,843 5,677 50 14,093 45,554 10 15,196 4,150 2,123 3,022 5,034 50 10,938 22,640 34,299 3,956 2,120 2,775 5,689 52 10,931 1 1,482 120,837 653 2,102 3,947 5,474 11 16,425 2,990 9,940 1,794 3,188 8,420 2,142 12, 497 8,781 5.,113 2,990 65.067 3,445 2,117 2, 643 12, 505 10,449 9,487 31, 526 119,,743 5,119 308, 773 3,972 2,116 2,646 6,472 9,885 20,101 30,415 16,601 1,208 52, 716 2,550 3 6,155 20,297 37,680 16,181 32,448 13,931 46,866 2,006 3 4,241 18,872 4,919 282 65,991 28,907 249,858 2,215 2,116 4,137 7,409 24,503 5,797 3, 273 39,654 32,617 54,967 2,396 2,111 3, 3763,374 28,798 4,710 * Differs from official customhouse figures in which imports and exports for January 1934 are valued at approximately $20.67 a fine ounce. «Includes $31,830,000 (revised) from Argentina. »Includes $28,097,000 from China and Hong Kong; $15,719,000 from Italy; $10,953,000 from Norway; $10,077,000 from Chile. * Includes $4,503,000 from Argentina. * Includes $5,157,000 from Hong Kong. * Includes $6,363,000 from Italy; $4,087,000 from Hong Kong. »Includes $5,586,000 from Italy; $6,414,000 from Norway. * Includes $19,527,000 from Norway; $5,452,000 from Hong Kong. »Includes $5,566,000 from Italy; $13,878,000 from Norway; $5,570,000 from U. S. S. R. 10 Includes $11,760,000 from Italy. " Includes $16,108,000 from Italy; $5,984,000 from Hungary. NOTE.—For gross import and export figures and for additional countries see table on p. 558. JUNE 1940 611 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Gold Movements—Continued [In thousands of dollars at approximately $35 a fine ounce] United Kingdom Net imports from or net exports (—) to: Year or Total month net im- South ports Africa, Other All e o x r p o n r e t t s U S n ta i t t e e s d France m G a e n r y - 1 g B iu e m l- N la e n th d e s r- U.S.S.R. Au l s ia tra- d R e h s o ia - , B In ri d ti i s a h B co ri u t n is - h S d w en e- e S r w la i n tz d - c o o th u e n r - West tries tries Africa 1934 _. 716,269 -497,166 348,190 121,017-13,585 32, 575 41, 790 335, 253 206, 693 62,397 -9,123 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'-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. -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, 358120,075 -7, 498 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, < 4,260 618 1,017 1,603 Dec... -66, 726 -97, 371 758 2,057 9,990 5,649 528 7,358 1,815 531 1,511 1,347 1939—Jan... -36, 514 -50,814 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 -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*-47,875 -437 73,394 -425 May. -294,077 -287, 762 -262 4,018 2,008 49,004 5,631 143 45, 394 2,975* -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, < e-114,284 -4," -4, 618 Germany Switzerland British India Net imports from or net exports (—) to: Increase in India: Year or Total Total Total month e n o x p e p r t o o r n i r t m t e s s t ^ - i e m o x r n p p e o n o t r e r t t t s s U S n ta i t t e e s d U K d n i o i n m t g e - d France g B iu el m - Italy N la e n e r t d - h s - m G a e n r y - * c o t o A r th i u l e e l n s r - i e m o x r ( n p p ) e o o n t r r e t t t s s p t I i G r n o o o d n d l i u d a i c n - s d e I r I r i n e v a n - - n es ea f e o r g d r m I o e n f l i a o g d r n r k- p i h r n i o I g v n l s a d t - 8 e account 1934.. -90,920 -12,784 -45,955 -29,235 18,397 19,431 2,580 -43 1,543 11,223 173 -219, 670 1935.. 42,969 647 -54,858 -181,725 -13,940 25,542 342 -9,607 • 2,812 11,468 -150,398 1936.. -1,868 -9,127 -1,714 39, 305 14, 531 51, 299 4,600 -2, 990 » 26, 368 11,663 -109,403 1937.. -3, 718 -51, 608 11,940 -45,061 27, 739 -657 6,553 -16,461 10, 609 11,607 -41 -50,075 1938.. -35,224 —1,128 76,620 -74, 375 -1,067 11,314 25,125 -32, 745 11, 284 12,078 -55,490 1939.. -88, 524-105,104 -13,431 -2, 953 31, 466-18,039 -25,191 l|646 11,009 50,913-119,396 1938—July.. 1,468 16,128 -14,071 -6,041 -142 3,962 -8,893 222 954 -10,034 N D A S O e o e u c p c v g t t . . . . . . . . . . . . . . - - - - - 1 1 3 3 6 0 6 6 , , , , , 1 8 1 7 6 6 2 3 6 2 5 9 4 4 6 -1 1 1 0 5 ,8 , , 4 9 9 5 6 4 0 1 4 4 0 7 3 -8, - - 1 6 3 4 3 1 8 1 3 9 6 2 8 3 -1 - - - , 1 1 1 2 1 6 1 5 8 1 6 7 8 3 7 - - 3 2 7 3 2 2, , , 5 8 8 9 9 5 2 8 2 9 1 4 4 4 4 -6, 1 - - 4 2 , - 8 2 5 3 6 6 8 6 8 5 7 4 -10 - , 2 2 3 0 5 3 4 9 3 1 1 2 9 9 9 9 6 4 3 5 1 9 3 9 4 5 1 , , , 4 9 6 7 0 9 9 9 0 - - - - 3 6 7 8 , , , , 2 0 1 6 - 7 3 2 1 8 0 6 1 1 1939—Jan... 33 -680 549 -149 1 2, 294 -1,274 -7 940 11,423 -10,608 Feb... -11, 940 -21 -763 24 -213 556 1,581 -97 -15 7,749 -10,174 Mar... 9,999 -10,786 1,547 -1,990 -1,509 -576 8, 327 -14,830 -860 4,812 -8,984 Apr.__ 9,967 -54,266 -104, 650 -4,805 -864 10,819 3,876 -2, 431 -2, 573 912 M?7 -7, 679 May.. -5,807 -2,329 -5,419 -1,609 -73 19,585 -718 -1,138 -239 937 -5,104 June.. -284 -8, 589 93 269 6 -8 725 -3,116 -76 910 5,749 July.. -2,856 1,033 -1,153 2 10,800 355 -171 -244 936 942 -10,270 Aug._. 2 4,334 -1,929 —91 2,815 1,234 -887 -204 923 2,512 -6,863 Sept.. -1,506 -1,030 -1 -25 89 -243 -11 888 6,096 -10,421 Oct.._. 44 -541 -5 -4, 583 1,463 1,617 2,965 934 4,563 -15,994 Nov.. 85 -907 q-6, 255 1,473 -2,743 -2 903 31 -6, 819 Dec... -3, 473 304 -1,338 -44 -1,662 -709 121 2,812 925 -19,592 1940—Jan -25,082 891 -24,191 1 Beginning April 1938 figures refer to Greater Germany. * Includes $17,465,000 exported to Rumania and unspecified net imports of $95,937,000. 8 Includes $67,655,000 exported to Central and South America, excluding British countries. * Figures for April and May include exports to Canada of $45,972,000 and $144,910,000 respectively. 8 No figures published since August 1939. * Includes net exports to Canada of $115,515,000. 7 Through March 1935 gold held by government; subsequently, gold held by Reserve Bank of India to which government gold was transferred. 8 Figures derived from preceding columns; gold movement plus production minus increases in Indian reserves and gold earmarked for foreign account in India. 9 Includes net import of $19,926,000 from Czecho-Slovakia and net export of $15,374,000 to Austria. 10 Includes net import of $26,555,000 from Czecho-Slovakia. n No figures published since June 1939. 12 No figures published since December 1939. NOTE.—Switzerland.—In some cases annual aggregates of official monthly figures differ somewhat from revised official totals published for year as a whole. 612 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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 U11U.S 111 \J . C Decrease Foreign Domestic in U. S. securities: securities: Inflow in From Jan. 2, 1935, through— Total Total C f b u e a n n n d tr k s al Other b a a f b u n r n k o d i a s n d g o R f f u e U n tu d . r s S n . In f f o f u l r o n e w i d g s n of b b r a o l k a e n r c a e g s e in N. Y. 1935—Dec. 31.. 1,412.5 603.3 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—Sept. 28. 3, 452.9 1,161. 2 168.0 993.2 477.2 625.0 1,125. 4 64.1 Oct. 26__ 3, 672. 2 1,298.9 205.3 1,093. 6 496.3 638.4 1,182.4 56.2 Nov. 30. 3, 709. 2 1,392.1 220.1 1,172.1 472.7 598.4 1,194.4 51.5 Dec. 28.. 3, 779. 2 1,432. 7 216.3 1, 216. 5 478.1 610.0 1, 210. 9 47.6 1939—Feb. 1... 3,852. 6 1,478. 2 197.5 1,280. 7 496.5 634.6 1,181.4 61.9 Feb. 8... 3,876. 0 1, 507.8 243.3 1,264.5 484.3 635.3 1,187.0 61.7 Feb. 15.. 3, 912. 9 1, 512. 9 278.1 1, 234.8 514.7 634.8 1,189.0 61.4 Feb. 22.. 3,940. 7 1, 517.8 239.6 1,278.2 535.0 637.5 1,190.6 59.8 Mar. 1.... 3,986.0 1, 544.9 265.1 1,279. 7 548.5 641.3 1,192.6 58.8 Mar. 8__._ 3,997. 4 1, 560. 5 281.1 1,279. 3 543.3 644.5 1,190.0 59.2 Mar. 15. __ 4,015. 6 1, 568.1 287.3 1,280.8 553.4 643.6 1,189. 5 61.1 Mar. 22___ 4,083.1 1,648. 3 247.2 1,401.1 549.5 644.3 1,174. 5 66.5 Mar. 29... 4,134.7 1, 693. 0 256.8 1,436.2 550.5 646.7 1,180.6 63.9 Apr. 5... 4,241.8 1,759. 6 251.3 1, 508. 3 572.0 652.6 1,191.7 65.9 Apr. 12.. 4,317. 6 1,819. 8 278.6 1, 541. 2 582.2 652.9 1,193.8 68.9 Apr. 19.. 4,402.9 1,892. 9 243.8 1,649.0 587.5 655.3 1,194.3 72.9 Apr. 26.. 4,479. 6 1,934.4 240.9 1,693. 5 611.8 657.5 1,202. 9 73.0 May 3... 4, 523.7 2,019. 6 245.9 1, 773. 6 596.1 621.8 1,211.9 74.4 May 10.. 4, 544. 5 2,030.7 264.5 1,766.2 591.3 637.1 1, 210.2 75.3 May 17.. 4, 567. 6 2,042.8 292.8 1,750.0 597.3 642.3 1,211.8 73.4 May 24.. 4, 570.0 2,046.3 299.1 1,747.3 596.0 644.1 1,209. 3 74.2 May 31_. 4, 570.8 2,041.5 302.1 1, 739. 5 599.8 647.6 1, 209. 2 72.7 June 7... 4, 550.0 2,008. 2 327.8 1,680.4 601.3 658.4 1,210. 6 71.6 June 14.. 4,555.9 2,019.8 364.4 1,655. 5 593.7 661.5 1, 208.3 72.6 June 21.. 4, 584.2 2,031.7 364.5 1, 667. 3 608.7 664.3 1,205.6 73.8 June 28_. 4, 593. 6 2,048.3 361.8 1, 686. 5 607.5 664.5 1,199. 3 74.0 July 5... 4,611. 6 2,049.7 306.9 1,742.9 608.0 678.5 1,199.3 76.1 July 12.. 4, 588.9 2,031.2 293.6 1,737. 5 607.9 677.1 1,194.4 78.4 July 19.. 4, 591.0 2,042. 5 288.6 1, 753. 9 604.5 677.0 1,185.0 81.9 July 26.. 4,613. 4 2,066. 2 301.2 1, 765.0 606.9 678.0 1,180.0 82.3 Aug. 2... 4,635.1 2,093. 9 327.1 1, 766.8 596.8 680.2 1,182.2 82.1 Aug. 9... 4,662. 7 2,139.1 323.2 1,815.8 609.9 652.8 1,176. 5 84.5 Aug. 16.. 4,709. 8 2,182.2 305.5 1,876. 7 622.8 654.5 1,164.9 85.4 Aug. 23.. 4,827. 9 2,287.3 352.5 1,934.9 633.0 656.9 1,165.1 85.5 Aug. 30.. 4,863. 3 2,334. 2 371.6 1,962. 6 620.6 657.8 1,165. 7 85.0 Sept. 6... 4,882. 3 2,341. 5 409.0 1,932. 5 623.5 661.7 1,171. 3 84.2 Sept. 13. 4, 940. 3 2,389. 3 464.7 1, 924. 6 621.7 668.9 1,181. 3 79.2 Sept. 20. 4,976. 0 2,434.6 510.7 1,923.9 612.5 674.4 1,173.4 81.1 Sept. 27. 4,955. 4 2,412. 4 485.1 1,927. 3 618.4 676.9 1,164.4 83.1 Oct. 4... 4,896. 8 2,386. 5 483.6 1,902.9 594.6 684.6 1,150.2 80.9 Oct. 11.. 4,872. 8 2,370. 6 462.8 1,907. 7 598.1 685.2 1,144.4 74.6 Oct. 18.. 4,871. 2 2, 360. 6 441.6 1,919.0 601.7 686.7 1,141. 7 80.5 Oct. 25.. 4,882. 0 2, 384. 7 442.9 1, 941. 9 601.0 687.3 1,130. 6 78.5 Nov, 4, 858. 6 2, 366. 9 494.8 1,872.0 599.6 688.7 1,123. 7 79.8 Nov. 4,825.0 2, 341. 6 490.3 1,851. 3 597.3 690.4 1,115.9 79.9 Nov. 4,862. 7 2, 362.4 481.6 1,880.8 618. 8 693.2 1,109. 2 79.2 Nov. 4,822. 9 2,329. 3 433.9 1,895. 3 615.3 694.3 1,107.1 76.9 Nov, 4,875. 6 2, 377. 4 435.9 1,941. 5 622.0 695.4 1,103. 7 77.1 Dec. 6... 4,867. 6 2, 366. 9 430.9 1,936.1 626.8 699.0 1,098.9 75.9 Dec. 13.. 4,860. 0 2, 366. 6 413.3 1,953. 3 619.7 700.7 1,096. 5 76.5 Dec. 20.. 4,904.8 2, 398. 5 441.0 1,957. 5 619.6 711.8 1,096.8 78.1 Dec. 27.. 4,893.0 2,383. 5 430.0 1, 953. 5 612.8 720.1 1,098. 5 78.1 1940—Jan. 3... 4,880.4 2, 321. 8 433.5 1,888.3 650.4 725.7 1,102. 6 79.9 Jan. 10.. 4,919. 8 2,360. 2 445.2 1, 915.0 644.5 731.7 1,102. 3 81.0 Jan. 17- 4,921. 9 2, 368. 4 435.2 1,933. 2 636.1 733. 7 1,100. 6 83.1 Jan. 24.. 4, 942. 3 2,384. 2 456.1 1, 928.2 640.1 736.1 1,099.0 82.8 Jan. 31.. 4,918. 0 2, 368. 5 449.6 1, 918. 9 626.1 738.0 1,098.1 87.3 Feb. 7... 4,911.7 2, 363. 4 427.8 1,935. 6 623.3 741.0 1,097. 4 86.7 Feb. 14.. 4, 929. 4 2, 380. 8 452.0 1, 928. 7 621.5 743.3 1,097.8 86.0 Feb. 21- 4, 902.1 2, 343.1 409.9 1, 933. 3 627.0 745. 5 1,099.1 87.4 Feb. 28.. 4, 930.1 2, 365. 4 432.9 1, 932. 5 627.7 748.7 1,102. 0 86.3 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. JUNE 1940 613 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTERNATIONAL CAPITAL TRANSACTIONS OF THE UNITED STATES NET CAPITAL MOVEMENT TO THE UNITED STATES SINCE JANUARY 2,1935—Continued [In millions of dollars. Minus sign indicates net movement from United States] TABLE 2.—TOTAL CAPITAL MOVEMENT, BY COUNTRIES From th r J o an u . g 2 h , - 1935, Total U K d n o in it 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 Asia* ot A he ll r i 1935—Dec. 31_ 1.412.5 554.9 210.2 114.5 130.4 36.6 24.0 130.0 1, 200. 6 () 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—Apr. 26. 4,479. 6 1,303. 3 421.6 405.4 595.6 146.9 26.0 595.9 3,494.7 216.8 480.6 231.4 56.2 May 31. 4, 570. 8 1,337. 6 431.1 391.1 595.3 148.7 29.1 606.5 3, 539. 4 241.0 507.4 226.4 56.6 June 28. 4.593.6 1, 360. 2 439.7 401.0 599.2 149.5 29.5 604.2 3, 583. 3 230.5 500.2 223.8 55.8 July 26. 4,613.4 1,312.9 441.9 407.6 607.0 150.1 30.9 616.9 3.567.1 248.8 512.3 224, 1 61.2 Aug. 30. 4,863. 3 1,326.3 473.4 412.1 647.2 148.8 26.1 665.1 3, 699.1 291.8 536.1 259.4 76.9 Sept. 27. 4,955.4 1,368.1 459.6 448.4 671.1 151.1 32.9 686.0 3,817. 2 260.9 528.0 276.4 72.9 Oct. 25. 4,882.0 1,301.4 430.9 446.8 686.5 159.1 48.0 710.3 3.783.1 239.0 522.2 260.2 77.5 Nov. 29. 4,875. 6 1,157. 2 453.1 457.8 719.1 162.9 55.8 725.3 3, 731. 2 263.2 504.0 287.3 89.9 Dec. 27. 4,893.0 1,117.3 442.3 469.9 759.1 163.3 55.9 753.8 3, 761. 5 229.2 505.9 299.4 96.9 1940—Jan. 31.. 4,918.0 1,029.3 471.2 466.1 798.3 166.3 61.7 811.3 3.804.2 226.6 503.9 297.3 86.1 Feb. 7__ 4, 911. 7 1, 031.1 470.2 462.0 799.8 165.5 61.8 812.1 3, 802. 5 219.7 500.9 302.6 86.1 Feb. 14. 4,929. 4 1,015.9 471.6 463.8 816.8 167.0 60.9 833.8 3, 829. 8 220.5 509.9 286.4 82.9 Feb. 21. 4, 902.1 1, 001. 7 464.4 467.7 824.4 166.0 60.1 822.0 3,806. 4 217.3 507.5 287.1 83.9 Feb. 28. 4, 930.1 1,006. 4 468.1 469.0 826.3 166.0 60.8 838.1 3,834.8 224.2 507.8 285.7 77.5 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 Asia* ot A he ll r i 1935—Dec. 31.. 603.3 128.6 129.6 55.7 72.4 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 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 3.8 203.0 1,010. 6 135.1 134.0 132.7 20.4 1939—Apr. 26.. 1,934.4 476.7 141.0 230.6 -15.7 -5.7 318.4 1, 382.1 166.9 209.6 140.4 35.3 May 31. 2,041. 5 505.8 243.2 123.2 224.7 -14.0 -4.4 323.6 1,402.1 209.3 250.7 142.8 36.6 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 July 26- 2,066. 2 495.3 252.1 139.9 235.1 -15.9 -6.0 332.7 1,433. 2 193.5 254.5 142.6 42.4 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 Sept. 27. 2,412.4 584.5 263.8 172.0 286.2 -21.9 -1.6 399.5 1,682. 5 225.2 262.0 188.5 54.3 Oct. 25.. 2,384. 7 558.5 227.8 172.0 293.8 -20.0 12.8 428.7 1, 673. 5 209.0 258.1 186.4 57.6 Nov. 29.. 2,377. 4 429.4 244.1 180.7 320.4 -18.4 16.7 446.9 1, 620.0 227.4 240.0 218.5 71.4 Dec. 27.. 2,383. 5 396.2 231.6 190.8 352.0 -22.2 16.7 473.1 1, 638. 2 185.0 243.6 238.9 77.8 1940—Jan. 31... 2,368. 5 332.3 186.3 381.8 -20.5 24.9 522.1 1, 685.4 166.8 231.2 226.2 58.9 Feb. 7... 2, 363. 4 333.5 180.9 381.6 -21.2 24.9 524.0 1, 680.3 161.5 229.6 232.8 59.2 Feb. 14.. 2, 380. 8 321.8 259^1 182.7 395.1 -21.3 23.9 546.3 1, 707. 5 161.4 235.6 220.0 56.2 Feb. 21.. 2, 343.1 302.6 252.8 186.1 398.2 -21.1 24.3 531.7 1, 674. 6 159.8 234.2 217.7 56.8 Feb. 28.. 2, 365. 4 304.4 256.4 186.2 397.3 -21.2 25.7 546.6 1, 695. 4 168.5 233.6 217.4 50.4 TABLE 4.—UNITED STATES BANKING FUNDS ABROAD, BY COUNTRIES From th r J o an u . g 2 h , - 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 Asia* ot A he ll r i 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—Apr. 26 611.8 227.9 67.1 .7 4.5 151.7 13.7 35.1 500.8 48.3 71.1 -6.0 -2.4 May 31 599.8 236.8 68.1 -. 1 4.7 152.0 15.3 38.7 515.4 46.9 54.8 -13.0 -4.3 June 28 607.5 236.7 68.1 -1.0 3.6 153.8 17.7 39.9 518.8 42.2 55.7 -2.9 -6.3 July 26 606.9 237.0 71.5 -3.0 4.9 156.5 17.9 40.7 525.4 43.6 54.1 -11.1 -5.1 Aug. 30 620.6 225.2 70.0 8.4 5.6 158.2 14.6 35.1 517.2 52.3 61.9 -5.7 -5.0 Sept. 27 618.4 226.1 70.0 9.1 5.2 164.1 15.1 38.2 527.7 46.6 57.4 -6.4 -6.9 Oct. 25 601.0 227.7 70.2 9.3 4.2 170.5 15.4 31.3 528.6 45.2 54.0 -20.0 -6.7 Nov. 29 622.0 245.6 73.3 12.0 3.4 172.7 17.8 27.8 552.6 52.7 52.0 -26.7 -8.5 Dec. 27 612.8 247.8 73.8 12.0 3.1 177.2 16.3 26.8 557.0 50.0 48.5 -34.3 -8.4 1940—Jan. 31 626.1 236.0 73.5 11.4 3.0 178.9 13.5 30.3 546.7 56.2 55.8 -32.0 Feb. 7 ._ 623.3 240.1 74.0 12.2 2.8 178.8 13.4 28.9 550.3 54.3 53.9 -34.1 -1.0 Feb. 14 . 621.5 239.5 73.3 11.7 3.2 180.4 13.6 27.6 549.2 54.9 56.5 -37.9 -1.3 Feb. 21 627.0 246.3 72.6 11.8 2.9 179.2 12.4 29.8 554.9 53.0 55.3 -35.5 Feb. 28 627.7 247.4 73.4 12.9 2.6 179.4 11.7 30.5 557.8 52.1 56.2 -37.7 -.7 1 Prior to Jan. 3, 1940, the figures shown under Asia represent the Far East only, the remaining Asiatic countries being included under "All other." 2 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.- 614 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTERNATIONAL CAPITAL TRANSACTIONS OF THE UNITED STATES NET CAPITAL MOVEMENT TO THE 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 J r a o n u . g 2 h , - 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 Am La e t r i i n ca Asia* ot A he ll r i 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—April 26. 657.5 128.7 27.5 29.3 40.1 35.2 23.2 178.2 462.0 -24.3 173.5 35.9 10.3 May 31- 647.6 128.1 27.9 29.6 41.3 35.4 23.6 179.8 465.7 -40.3 175.2 36.6 10.4 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 July 26.. 678.0 126.4 28.3 29.5 42.3 35.9 24.3 179.9 466.5 -13.7 177.2 38.1 10.0 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 Sept. 27. 676.9 124.9 33.8 29.7 43.4 36.4 24.8 183.1 476.0 -29.5 180.4 39.3 10.7 Oct. 25.. 687.3 124.8 41.1 29.4 43.3 36.4 24.9 185.0 485.0 -29.7 181.1 39.8 11.1 Nov. 29_ 695.4 124.3 41.7 29.2 43.3 36.5 26.1 186.5 487.6 -26.7 182.3 40.8 11.4 Dec. 27.. 720.1 125.6 42.1 29.4 44.8 36.6 27.6 188.6 494.6 -11.5 183.0 42.8 11.3 1940—Jan. 31__. 738.0 126.2 42.5 29.6 46.0 36.5 27.8 190.6 499.1 -.2 184.5 43.2 11.3 Feb. 7— 741.0 126.6 42.5 29.8 46.4 36.4 27.9 190.9 500.5 .7 184.8 43.5 11.3 Feb. 14_. 743.3 127.0 42.5 30.1 46.8 36.4 27.9 191.1 501.9 1.2 185.2 43.6 11.4 Feb. 21_. 745.5 128.0 42.6 30.2 47.2 36.4 27.9 191.4 503.7 1.3 185.2 43.7 11.5 Feb. 28._ 748.7 129..0 42.6 30.2 47.7 36.4 27.9 191.7 505.5 1.7 185.6 44.2 11.6 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 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 Asia1 ot A he ll r i 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. , 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. , 210.9 472.6 76.5 212.9 301.7 -22.7 -5.4 56.6 1.092.3 27.8 23.4 56.4 11.0 1939—Apr. 26. , 202.9 452.6 73.9 224.1 310.0 -24.2 -5.5 56.7 1,087.6 16.7 25.6 60.4 12.5 May 31. , 209. 2 448.9 75.6 228.9 313.9 -24.6 -5.6 57.2 1.094.4 16.6 25.8 59.0 13.5 June 28. , 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 July 26.. , 180.0 434.2 72.6 229.0 312.0 -26.3 -5.5 56.0 1,072. 0 16.5 25.3 52.6 13.4 Aug. 30. , 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 Sept. 27. 164.4 408.4 73.7 228.2 320.9 -27.4 -5.5 58.3 1,056. 7 8.9 26.1 58.5 14.1 Oct. 25.. ,130.6 369.8 72.9 227.0 329.1 -27.6 -5.4 59.4 1,025.1 5.3 27.0 59.2 13.9 Nov. 29. 103. 7 338.2 74.9 226.2 336.3 -28.0 -4.9 59.1 1,001. 8 .7 28.6 58.7 13.8 Dec. 27.. 098. 5 328.2 76.3 227.1 342.8 -28.2 60.1 1,001.4 -3.1 29; 8 56.1 14.3 1940—Jan. 31.. 098.1 315.7 77.1 229.4 349.2 -28.3 -4.7 62.4 1,000.8 -5.9 30.6 58.2 14.5 Feb. 7... 097.4 312.1 77.3 229.9 350.9 -28.4 -4.6 62.7 999.9 -6.4 30.8 58.5 14.5 Feb. 14.. 097.8 308.7 77.4 230.2 353.8 -28.4 -4.7 63.0 1,000.1 -6.5 31.3 58.5 14.5 Feb. 21.. 099.1 306.0 77.4 230.5 356.8 -28.4 -4.7 63.3 1,001.1 -6.7 31.3 58.9 14.5 Feb. 28.. 102.0 306.5 76.8 230.4 359.7 -28.4 -4.7 63.4 1,003. 8 -7.5 31.5 14.4 TABLE 7.—BROKERAGE BALANCES,* BY COUNTRIES From th r J o a u n g . h 2 — , 1935, Total U K d n i o i n m t g e - d France N la e e n r t d - h s - S l w a e n r i - t d z- m G a e n r- y Italy E O u t r h o e p r e E T u o ro ta p l e Canada A L m a e t r i i n ca Asiai ot A he ll r i 1935—Dec. 31 6.0 2.4 1.3 2.5 -.2 .1 1.4 7.6 -4.5 1.0 2.9 -.9 1936—Dec. 30 12.9 4.0 10.4 -.9 9.1 -.7 .3 .4 22.6 -7.6 -4.2 2.1 8 1937—Dec. 29 47.5 11.5 11.5 5.0 10.8 .1 5.0 44.0 3.5 -.5 .5 1938—Dec. 28 47.6 13.2 12.6 6.8 8.8 -.2 .2 5.3 46.7 2.6 -.9 -1.0 .2 1939— J J N D A M S O A u u e e u o c a p n l p c t y g v y r e . . t . . . . 2 2 2 2 2 3 3 2 2 5 6 1 7 8 6 0 9 7 . _ 8 8 7 7 8 7 7 7 7 5 2 3 4 3 2 8 8 7 . . . . . . . . . 0 0 3 0 7 5 1 1 1 2 2 2 1 1 1 1 1 1 0 4 0 7 7 8 8 9 9 . . . . . . . . . 0 2 4 7 0 8 6 1 5 1 1 1 1 1 1 1 1 1 7 9 8 9 9 6 6 6 8 . . . . . . . . . 5 4 0 0 8 3 3 5 1 1 1 1 8 9 9 9 9 9 2 0 0 . . . . . . . . . 6 4 0 6 6 5 2 7 3 1 1 1 1 1 1 1 1 1 2 5 1 6 0 0 5 5 6 . . . . . . . . . 7 0 9 4 5 8 7 3 1 - - - - - - - '. . . . . . . Z 2 2 2 1 1 1 o . . . . . . . . . 2 1 3 2 2 2 1 1 2 7 7 7 7 7 7 6 5 5 . . . . . . . . . 4 6 0 2 0 0 0 3 5 6 6 7 6 7 7 6 7 6 8 3 4 0 0 1 0 9 2 . . . . . . . . . 0 2 0 2 9 9 3 2 1 1 8 8 9 8 9 9 9 9 1 . . . . . . . . . 9 9 7 3 0 2 7 1 9 2 2 1 1 1 1 . . . . . . . . . 7 8 8 9 1 0 1 1 1 - - - - 3 4 4 5 3 1 1 . . . . . . . . . 6 0 0 2 6 4 0 9 0 2 1 1 . . . . . . . . . 4 4 5 3 3 7 0 8 5 1940—Jan. 31 87.3 19.1 19.6 9.4 18.3 -.2 .2 5.8 72.2 9.7 1.7 1.7 2.0 Feb. 7 86.7 18.8 19.7 9.2 18.1 -.2 .2 5.6 71.4 9.6 1.6 2.0 2.1 Feb. 14 86.0 18.9 19.3 9.2 17.8 -.2 .2 5.8 71.1 9.5 1.3 2.1 2.1 Feb. 21 87.4 18.7 19.1 9.3 19.2 -.2 .3 5.8 72.1 9.8 1.3 2.3 1.9 Feb. 28 86.3 19.1 19.0 9.2 19.1 -.2 .2 5.9 72.3 9.3 .9 2.0 1.9 1 Prior to Jan. 3, 1940, the figures shown under Asia represent the Far East only, the remaining Asiatic countries being included under "All other." 2 For explanation see BULLETIN for May 1937, pp. 395-396. 3 Inflow less than $50,000. * Outflow less than $50,000. JUNE 1940 615 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTERNATIONAL CAPITAL TRANSACTIONS OF THE UNITED STATES 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 i o i n m t 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 ur t o h p er e E T u o ro ta p l e Canada A L m a e t r i i n ca Asia* ot A he ll r i 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 12,162. 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. 28 2. 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 3_ 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 1935—Mar. 27. 635.6 92.4 38.1 18.8 16.0 25.3 14.3 51.2 256.2 106.5 137.4 120.5 15.0 June 26.. 839.0 153.2 98.4 43.9 35.4 25.3 16.9 55.1 428.4 132.4 145.7 115.7 16.8 Sept. 25. 922.9 162.4 84.1 51.2 50.7 27.4 16.5 68.1 460.6 144.3 155.4 144.9 17.7 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—Mar. 25. 1,177. 2 186.6 145.8 65.8 86.3 21.6 18.7 118.3 643.1 144.2 189.3 183.1 17.5 June 24_. 1,426. 2 270.5 157.8 102.8 128.3 20.6 25.3 123.1 828.2 160.6 207.4 208.2 21.7 Sept. 30. 1,459. 6 293.7 163.2 76.8 147.3 19.2 29.2 128.8 858.3 170.7 200.5 210.2 19.8 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—Mar. 31. 1, 682. 7 226.9 173.0 60.4 113.1 53.9 36.6 140.8 804.7 210.0 441.0 204.6 22.5 June 30.. 2,173. 6 373.1 206.2 145.0 331.4 40.3 23.0 177.9 1, 296. 9 190.1 448.8 210.4 27.4 Sept. 29. 2, 304. 8 385.8 197.3 167.6 425.5 48.7 27.5 223.4 1,475. 9 219.3 353.8 229.9 25.8 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—Mar, 30. 1, 521. 0 248.1 126.3 48.5 236.7 25.7 14.9 135.7 835.8 186.4 257.9 219.5 21.3 June 29_. 1, 357. 4 217.4 102.2 48.6 173.8 27.3 18.2 121.9 709.4 173.5 261.7 194.4 18.4 Sept. 28. 1, 732. 4 308.5 165.6 82.2 191.0 17.6 17.2 232.8 1,015. 0 190.8 285.0 207.9 33.7 Dec. 28_. 2,003. 9 438.8 190.9 98.4 217.4 19.9 22.6 249.9 1, 237.8 235.2 254.9 243.7 32.4 1939—Jan. 25_. 1,992. 6 419.2 199.9 103.4 226.8 16.8 18.4 269.1 1, 253. 6 205.3 250.0 247.2 36.4 Feb. 22_. 2,089.0 445.2 216.5 119.4 238.4 16.7 13.0 257.7 1,306.8 223.2 264.6 258.5 35.9 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 April 26. 2, 505. 6 548.9 269.0 154.9 244.2 13.9 13.1 365.3 1, 609. 3 267.0 330.6 251.4 47.3 May 31. 2, 612. 7 578.0 275.3 137.1 238.4 15.7 14.3 370.5 1, 629. 3 309.4 371.7 253.8 48.6 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 July 26- 2, 637. 4 567.5 284.2 153.8 248.8 13.8 12.8 379.6 1, 660.4 293.6 375.5 253.6 54.4 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 Sept. 27. 2, 983. 6 656.7 295.9 186.0 299.9 7.8 17.1 446.4 1,909. 7 325.3 383.0 299.5 66.2 Oct. 25.. 3, 010. 9 630.6 259.9 186.0 307.4 9.6 31.6 475.6 1, 900. 7 309.2 379.0 352.4 69.6 Nov. 29. 3, 003. 6 501.6 276.3 194.7 334.1 11.3 35.5 493.8 1, 847. 2 327.6 361.0 384.5 83.4 Dec. 27. 3,009. 7 468.4 263.7 204.7 365.6 7.5 35.5 520.0 1,865.4 285.1 364.5 404.9 89.7 1940—Jan. 31.. 2, 994. 7 404.5 290.6 200.3 395.5 9.1 43.7 569.0 1, 912. 6 266.9 352.2 392.1 70.0 Feb. 7— 2, 989. 6 405.6 288.8 194.8 395.2 8.4 43.7 570.9 1, 907. 5 261.6 350.5 398.8 71.2 Feb. 14.. 3, 007. 0 393.9 291.2 196.7 408.8 8.4 42.7 593.2 1, 934. 7 261.6 356.6 386.0 68.1 Feb. 21.. 2, 969. 3 374.8 284.9 200.0 411.9 8.5 43.0 587.6 1, 901. 8 260.0 355.2 383.7 68.7 Feb. 28.. 2, 991. 6 376.6 288.5 200.1 411.0 8.4 44.5 593.5 1, 922. 6 268.7 354.6 383.4 62.4 Additional Detail Available from Jan. 3,1940* 5 European countries 6 Latin American countries 4 Asiatic countries Date Total g B i e u l- m m D a e r n k - l F a i n n d - N w o a r y - S d w e e n - Total g t A i e n r n a - - B z r i a l - Chile Cuba M ic e o x- C P a a m a . n n d Z a - . Total China H K o o n n g g Japan I P s p h la i i n l n i e d p- s 1940—Jan. 3. _ 407.1 159.2 28.1 21.4 56.3 142.2 250.7 57.7 36.4 26.8 37.0 58.8 34.0 323.9 165.4 71.4 58.0 29.1 Jan. 31. 448.1 166.2 28.7 23.8 67.0 162.4 259.3 66.5 31.8 24.4 38.3 62.1 36.2 332.1 171.9 72.2 58.0 30.0 Feb. 7__ 448.8 172.9 26.7 27.1 68.7 153.4 260.1 65.4 31.9 26.1 38.4 61.0 37.2 338.1 174.2 72.5 55.4 36.0 Feb. 14. 461.9 175.0 27.8 25.1 68.5 165.5 264.9 66.7 29.5 26.7 38.4 67.6 35.9 331.4 174.6 70.0 53.9 32.9 Feb. 21. 446.9 173.6 27.8 21.8 69.8 153.8 263.2 66.0 30.8 25.7 38.4 65.8 36.5 327.5 173.2 70.0 52.8 31.4 Feb. 28. 458.8 176.6 27.2 23.7 69.4 161.9 263.7 68.7 30.0 24.7 38.3 65.2 36.7 325.3 176.3 68.5 50.8 29.7 1 Prior to January 3, 1940, the figures shown under Asia represent the Far East only, the remaining Asiatic countries being included under "All other." 2 Last report date on old basis. 3 First report date on new basis. 4 The figures in this supplementary table represent a partial analysis, available from Jan. 3,1940, of the figures in the main table under the headings of Other Europe, Latin America, and Asia. NOTE.—The figures given in this table are not fully comparable throughout as a result of certain changes or corrections in the reporting practice of reporting banks which occurred on August 12, 1936, January 5, 1938, and October 18,1939 (see BULLETIN for May 1937, p. 425; April 1939, p. 295; and April 1940, p. 362). 616 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTERNATIONAL CAPITAL TRANSACTIONS OF THE UNITED STATES OUTSTANDING SHORT-TERM ACCOUNTS, BY COUNTRIES [Outstanding amounts in millions of dollars] TABLE 9.—SHORT-TERM FOREIGN ASSETS—BY COUNTRIES Date Total U K d n i o i n m t 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 Am La e t r i i n ca Asia* oth A e l r l 1 Reported by Banks in New York City 1931—Dec. 30____ 1,103. 3 166.2 29.5 20.9 12.6 467.2 18.7 149.2 864.3 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. 28 2 . 827.1 201.3 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 3_. 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 1935—Mar. 27.. 962.5 192.2 53.9 14.5 5.7 226.5 23.2 75.7 591.6 100.8 169.9 90.3 10.0 June 26.. 829.2 88.8 32.0 13.4 6.3 213.8 24.6 79.1 457.9 108.2 165.0 88.8 9.3 Sept. 25. 765.2 87.3 62.7 16.5 7.8 199.9 21.0 65.9 461.0 77.9 153.0 64.3 9.1 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—Mar. 25.. 736.3 82.7 26.5 22.9 5.4 198.6 12.6 64.8 413.5 78.7 158.7 74.3 11.2 June 24_. 691.6 77.3 23.9 21.2 4.5 187.0 12.7 57.8 384.4 78.0 144.0 73.9 11.4 Sept. 30. 647.9 75.8 81.5 21.5 5.2 160.6 11.0 52.0 407.6 49.1 126.6 54.4 10.2 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—Mar. 31_. 693.1 99.7 15.8 17.1 4.9 162.2 13.0 58.1 370.7 71.7 135.3 100.0 15.5 June 30.. 637.7 75.6 13.2 13.7 3.5 143.9 14.8 55.2 319.9 87.8 132.0 83.6 14.5 Sept. 29.. 586.0 75.3 11.1 19.1 4.2 132.0 16.8 52.8 311.3 82.5 107.0 71.7 13.5 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—Mar. 30.. 669.7 120.6 11.4 23.5 4.8 112.0 18.1 51.0 341.4 93.3 113.5 104.1 17.4 June 29.. 700.8 141.4 16.2 25.2 5.9 102.6 16.1 49.0 356.4 87.6 . 116.6 126.4 13.8 Sept. 28. 626.9 121.9 11.4 22.6 4.4 99.1 17.0 46.3 322.7 84.0 94.2 113.6 12.4 Dec. 28.. 626.0 87.7 13.3 25.5 5.4 90.9 13.3 46.7 282.8 65.7 99 2 162.6 15.7 1939—Jan. 25... 603.2 98.5 8.7 23.8 4.5 88.6 14.4 43.9 282.4 52.4 95.7 157.9 14.8 Feb. 22.. 569.1 82.0 12.4 22.4 4.2 84.0 13.3 48.0 266.3 49.0 98.3 140.4 15.0 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 April 26. 492.3 64.2 11.7 17.9 3.6 79.4 13.5 44.7 235.0 48.0 94.9 103.6 10.9 May 31. 504.3 55.4 10.7 18.7 3.4 79.2 11.9 41.1 220.4 49.4 111.1 110.6 12.8 June 28.. 496.6 55.4 10.7 19.7 4.5 77.4 9.5 39.9 217.0 54.0 110.3 100.5 14.8 July 26.. 497.2 55.2 7.3 21.7 3.2 74.7 9.3 39.1 210.3 52.7 111.8 108.7 13.6 Aug. 30. 483.5 66.9 8.7 10.3 2.5 73.0 12.6 44.7 218.6 44.0 104.1 • 103.3 13.5 Sept. 27. 485.7 66.0 8.7 9.6 2.9 67.1 12.2 41.6 208.1 49.7 108.5 104.0 15.4 Oct. 25.. 558.1 64.5 8.6 9.3 3.9 60.7 11.8 48.5 207.2 51.1 112.0 172.6 15.2 Nov. 29.. 537.1 46.5 5.4 6.6 4.7 58.5 9.4 52.0 183.1 43.6 114.0 179.3 17.0 Dec. 27__ 546.3 44.4 5.0 6.6 4.9 53.9 10.9 53.0 178.7 46.3 117.5 186.9 16.9 1940—Jan. 31-. 533.0 56.2 5.3 7.2 5.1 52.3 13.7 49.5 189.1 40.1 110.2 184.6 9.1 Feb. 7— 535.8 52.0 4.7 6.5 5.3 52.3 13.8 50.8 185.5 42.0 112.0 186.7 9.5 Feb. 14_. 537.6 52.7 5.5 7.0 4.9 50.8 13.6 52.2 186.5 41.4 109.5 190.5 Feb. 21.. 532.1 45.8 6.2 6.8 5.2 52.0 14.8 50.0 180.8 43.2 110.6 188.1 Feb. 28.. 531.4 44.7 5.4 5.7 5.5 51.8 15.5 49.3 177.9 44.2 109.8 190.3 9.2 Additional Detail Available from Jan. 3,19404 5 European countries 6 Latin American countries 4 Asiatic countries Date Total g B iu e m l- m D a e r n k - l F a i n n d - N w o a r y - S d w e e n - Total g t A i e n r n a - - B z r i a l - Chile Cuba M ic e o x- C P a a m a . n n d Z a - . Total China H K o o n n g g Japan P Is p h la i i n l n i e p d - s 1940—Jan. 3.. 23.4 6.5 3.2 1.4 3.6 8.7 76.1 16.8 32.2 9.7 10.5 5.9 1.0 152.5 22.0 1.9 102.1 26.4 Jan. 31. 22.2 7.2 3.7 1.2 3.7 6.5 71.5 12.9 31.2 9.6 10.4 6.5 .9 161.9 22.5 1.6 111.2 26.6 Feb. 7__ 22.4 7.5 3.6 1.2 3.8 6.2 72.5 12.7 34.2 9.7 10.2 4.7 1.0 165.3 24.7 1.6 113.2 25.8 Feb. 14. 23.0 8.4 3.6 1.1 4.0 5.9 70.0 12.1 31.6 9.5 11.2 4.7 .9 168.5 25.1 1.8 114.4 27.2 Feb. 21. 20.9 7.7 2.8 1.0 4.0 5.4 70.4 11.6 32.2 9.6 11.6 4.5 .9 167.3 25.4 2.6 114.5 24.9 Feb. 28. 20.4 7.4 2.9 .8 4.0 5.4 69.9 12.0 31.8 9.7 11.1 4.4 .9 168.0 25.4 3.2 111.2 28.2 1 Prior to January 3, 1940, the figures shown under Asia represent the Far East only, the remaining Asiatic countries being included under "All other." 2 Last report date on old basis. 3 First report date on new basis. * The figures in this supplementary table represent a partial analysis, available from January 3, 1940, of the figures in the main table under the headings Other Europe, Latin America, and Asia. NOTE.—The figures given in this table are not fully comparable throughout as a result of certain changes or corrections in the reporting prac" tice of reporting banks which occurred on August 12, 1936, and October 18, 1939 (see BULLETIN for May 1937, p. 431, and April 1940, p. 363). JUNE 1940 617 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CENTRAL BANKS Assets of Bank of England issue dept. Assets of banking department Liabilities of banking department Note (Fi p g o u u re n s d i s n s m te i r l l l i i n o g n ) s of Gold Other Cash reserves a c n o D d u is n a - t d s - Se ti c e u s ri- ci t r i c o u n la- Deposits l O ia t b h i e li r - Coin Notes vances Bankers' Public Other ties 1929—Dec. 25.. 145.8 260.0 .2 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... 119.81 275.0 .8 23.6 18.5 120.1 371.2 102.4 8.9 33.8 18.0 1933—Dec. 27... 190.7 260.0 1.0 58.7 16.8 101.4 392.0 101.2 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 .6 35.5 8.5 94.7 424.5 72.1 12.1 37.1 18.0 1936— Dec. 30... 313.7 200.0 .6 46.3 17.5 155.6 467.4 150.6 12.1 39.2 18.0 1937—Dec. 29... 326.4 220.0 .8 41.1 9.2 135.5 505.3 120.6 11.4 36.6 18.0 1938—Dec. 28... 230.0 51.7 28.5 90.7 504.7 101.0 15.9 36.8 18.0 1939—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 .7 27.4 6.8 136.7 499.0 101.4 15.4 37.0 17.9 July 26... 4 246.4 300.0 .6 35.5 8.0 128.0 510.9 91.4 26.0 36.7 18.1 Aug. 30.. 263.0 300.0 .7 33.5 6.4 137.8 529.5 90.1 31.1 39.0 18.2 Sept. 27.. 6.1 580.0 .7 38.3 2.5 144.2 541.8 107.1 19.8 40.5 18.3 Oct. 25... .2 580.0 .9 53.0 4.6 127.7 527.1 116.8 12.6 39.2 17.7 Nov. 29.. .2 580.0 1.1 51.6 4.5 132.1 528.7 103.5 27.8 40.2 17.8 Dec. 27.. .2 580.0 1.0 25.6 4.3 176.1 554.6 117.3 29.7 42.0 17.9 1940—Jan. 31... .2 580.0 .8 52.5 3.1 143.9 527.7 98.1 39.7 44.3 18.0 Feb.28... .2 580.0 1.0 49.0 2.8 149.4 531.2 99.4 45.7 38.9 18.1 Mar. 27.. .2 580.0 1.1 37.1 6.1 157.2 543.1 98.0 43.1 42.2 18.2 Apr. 24.. .2 580.0 1.0 43.1 4.9 153.5 537.1 103.4 40.7 40.6 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- liabiliex- Open Spe- Gov- term Other tion Govern- ties change market7 cial* Other ern- Govern- securi- ment Other ment* ment se- ties curities 1929—Dec. 27_ 41,668 25,942 5,612 8,624 2,521 6,603 68,571 11,737 7,860 1,812 1930—Dec. 26. 53,578 26,179 5,304 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 22,183 1,989 1932—Dec. 30. 83,017 4,484 6,802 3,438 2,515 9,196 85,028 2,311 20,072 2,041 1933—Dec. 29. 77,098 1,158 6,122 4,739 2,921 8,251 82,613 2,322 13,414 1,940 1934—Dec. 28_ 82,124 963 5,837 3,971 3,211 8,288 83,412 3,718 15,359 1,907 1935—Dec. 27. 66,296 1,328 5,800 0,712 573 3,253 7,879 81,150 2,862 8,716 2,113 1936—Dec. 30. 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—Dec. 29. 87,266 821 7,422 1,797 7,880 20,627 443 3,612 14,442 110,935 5,061 25,595 2,718 1939—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 2,728 April 27. «>92,266 756 8,609 2,165 6,012 20,577 127 3,362 14,452 124, 666 3,755 17, 255 2,649 May 25. 92, 266 754 8,164 2,276 4,774 20,577 78 3,401 14,264 121,391 4,573 17, 570 3,020 June 29-. 92, 266 722 8,074 2,279 5,009 20,577 374 3,471 14,753 122, 611 5,188 16,909 2,816 July 27.. 92, 266 722 8,316 2,275 5,000 20,577 472 3,461 14,458 123,239 6,468 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 Nov. 30. 97, 266 120 10,565 1,626 5,206 30,473 454 3,581 17, 769 149,370 1,953 12, 392 3,346 Dec. 28.. 97, 267 112 11, 273 2,345 5,149 34, 673 174 3,482 16,438 151, 322 1,914 14, 751 2,925 1940—Jan. 25.. 97, 268 111 11,861 2,235 5,011 35, 673 229 3,444 15, 963 151, 738 1,834 14, 965 3,259 Feb. 29 , 97, 275 109 12, 505 1,810 4,630 40, 523 465 3,403 16, 917 156,150 1,203 17,128 3,156 Mar. 28- i<>84,614 111 42, 645 1,870 5,005 20, 550 320 3,376 15, 970 156, 032 1,154 14, 262 3,014 Apr. 25P. 84, 615 112 (") 1,781 5,769 20, 900 228 3,411 156, 285 1,172 14, 681 (") p Preliminary. • Securities and silver coin held as cover for fiduciary issue, which has been fixed at £580,000,000 since Sept. 6, 1939; for information concerning previous status of fiduciary issue see BULLETIN for December 1939, p. 1140, and April 1939, p. 339. » On Jan. 6, 1939, £200,000,000 of gold transferred to British Exchange Equalization Account. 3 Effective Mar. 1,1939, gold valued at current prices instead of legal parity and about £5,500,000 transferred from Exchange Account to Bank. • On July 12, 1939, £20,000,000 of gold transferred from Exchange Account to Bank of England. « On Sept. 6, 1939, £279,000,000 transferred from Bank of England to Exchange Account. • By decree of Feb. 29, 1940 (see BULLETIN for May 1940, pp. 406-407), gold revalued on basis of 23.34 milligrams gold 0.900 fine per franc. Increment of about 17,000,000,000 francs supplemented by certain other funds was applied to the full repayment of advances to the Government granted under authority of the decree of Nov. 12, 1938, in the amount of 20,473,000,000 francs. Gold also revalued in Oct. 1936, July 1937, and Nov. 1938. For further details see BULLETIN for December 1939, p. 1140, and December 1938, p. 1091. i Negotiable bills of Caisse Autonome, bills bought under authority of decree of June 17, 1938 (see BULLETIN for August 1938, p. 650) and, from Mar. 28, 1940, 30,000,000,000 francs of negotiable Treasury bills received in return for gold transferred to Stabilization Fund on Mar. 7, 1940. • Bills and warrants endorsed by National Wheat Board (law of Aug. 15, 1936—see BULLETIN for October 1936, pp. 785-786), and bills rediscounted for account of Banques Populaires (law of Aug. 19, 1936—see BULLETIN for October 1936, p. 788). • Includes advances granted Tinder 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 BULLETIN for July 1936, p. 536; August 1937, p. 720; June 1938, p. 452; August 1938, p. 650; January 1939, p. 30; and November 1939, p. 976). io On April 20, and again on Aug. 3, 1939, 5,000,000,000 francs of gold transferred from Stabilization Fund to Bank of France; on Mar. 7,1940, 30,000,000,000 francs of gold transferred from Bank of France to Stabilization Fund. " Figures not yet available. NOTE.—For further explanation of table see BULLETIN for February 1931, pp. 81-83, and July 1935, p. 463. 618 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Central Banks—Continued Assets Liabilities (Figu r R e re i e c s i h c i s h n m s m b a a i r l k n li s k o ) ns of R re f e T o s s o e r e e r t r i v a v g l e e n s s o e f x g c G h o a l o d n l g d a e i nd B i T c n i h l r c b l e e s l i c a u l ( k s l d a s u s i n n ) r , d y g Se lo c a u n ri s ty E a c s li o g n v i o S e b r t e l e e curiti O es ther a O s t s h e e ts r ci N t r i c o o u n t l e a- Deposits l O ia t t i b h e i s e li r - 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—Dec. 31. 76 71 8,244 45 557 298 1,621 8,223 1,527 1,091 1939—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 Nov. 30. 77 10,148 36 997 365 2,257 10, 974 1,574 1,332 Dec. 30. 78 11, 392 30 804 393 2,498 11, 798 2,018 1,378 940—Jan. 31. 77 11,143 33 374 401 2,487 11,505 1,628 1,382 Feb. 29. 77 11,825 37 172 367 2,380 11,877 1,559 1,422 Mar. 30- 78 12, 242 31 144 394 . 2, 557 12,176 1,760 1,509 Apr. 30. 78 12,188 31 221 364 2,651 12,480 1,714 1,338 i Not shown separately on Reichsbank statement after June 15,1939. NOTE.—For explanation of above table see BULLETIN for February 1931, pp. 81-83, and July 1935, p. 463. Central bank 1940 1939 Central bank 1940 1939 [Figures as of last report [Figures as of last report date of month] Apr. Mar. Feb. Apr. date of month] Apr. Mar. Feb. Apr. National Bank of Albania (thou- National Bank of Belgium (millions sands of francs): of belgas): Gold 7,567 7,568 Gold and foreign exchange 4,472 4,312 3,511 Foreign assets 58, 666 21, 072 Discounts 1,041 1,075 589 Loans and discounts 7,030 4,951 Loans 62 134 150 Other assets 8,241 10, 309 Other assets 506 504 471 Note circulation 27,150 17, 263 Note circulation 5,770 5,744 4,459 Other sight liabilities 39, 258 10, 292 Demand deposits—Treasury 1 0) 7 Other liabilities 15,095 16, 345 Other 187 157 135 Central Bank of the Argentine Other liabilities 124 124 122 Republic (millions of pesos): Central Bank of Bolivia (thousands Gold reported separately.. 1,224 1,224 1,224 of bolivianos): Other gold and foreign exchange. 179 165 80 Gold at home and abroad 94,813 61, 430 Negotiable Government bonds ... 244 268 279 Foreign exchange 94,863 51, 226 Other assets 194 190 196 Loans and discounts 120,123 31, 613 Note circulation 1,180 1,170 1,126 Securities—Government 427,407 407, 587 Deposits—Member bank 477 460 417 Other 10,084 4,431 Government 110 141 157 Other assets 70,186 32, 503 Other 3 4 3 Note circulation 367, 576 295, 684 Foreign exchange sold forward 16 17 31 Deposits 359, 737 225, 302 Other liabilities 56 56 47 Other liabilities 90,164 67, 803 Commonwealth Bank of Australia National Bank of Bulgaria (mil- (thousands of pounds): lions of leva): Issue department: Gold 2,006 Gold and English sterling._ . 16, 082 16, 082 16,030 Foreign exchange ... 855 Securities. 46, 795 44, 802 41, 501 Loans and discounts 988 Banking department: Government debt 3,441 Coin, bullion, and cash... . 2,704 3,223 1,524 Other assets 1,310 London balances 39, 612 32, 962 16,800 Note circulation 3,166 Loans and discounts 35, 560 35, 950 16, 798 Deposits 3,285 Securities 37, 558 42,472 53, 596 Other liabilities 2,149 Deposits 107, 623 108, 276 83, 002 Bank of Canada (thousands of Ca- Note circulation- 54, 025 52, 025 48, 530 nadian dollars): Bank of Belgian Congo (millions of Gold 225, 773 225, 772 225, 772 205, 993 Belgian francs): Sterling and United States ex- Gold 166 change 42, 695 60, 719 57,467 31, 586 Loans and discounts 369 Canadian Gov't securities: Other assets 559 2 years or less 101, 507 93, 361 159,096 135, 834 Note circulation 377 Over 2 years 107, 574 104,664 53,031 29,340 DeDosits 571 Other assets 12,054 9,512 5,748 7,521 Other liabilities 146 Note circulation 221,192 221,163 208,817 165, 330 Deposits—Chartered banks 213, 912 202, 324 210, 526 206,187 Dominion Government 32,165 48,025 63, 787 21, 246 Other 8,295 10, 580 4,728 8,635 Other liabilities 14, 037 11, 935 13, 255 8,876 i Less than 500,000 belgas. JUNE 1940 619 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Central Banks—Continued Central bank 1940 1939 1940 1939 [Figu d r a es te a o s f o m f l o a n st t h r ] eport Apr. Mar Feb. Apr. [Figu d r C e a s t e e n a t o s r f a o l m f b l o a a n s n t t k h r ] eport Apr. Mar. Feb Apr. Central Bank of Chile (millions of Central Reserve Bank of El Salvapesos): dor—Cont. Gold 146 146 145 Deposits 6,423 7,718 Discounts for member banks 101 60 84 Other liabilities 3,641 3,641 Loans to government 750 750 758 Bank of Estonia (thousands of Other loans and discounts 363 317 246 krooni): Other assets 52 55 53 Gold__ — 40,901 40, 922 40, 857 Note circulation 1,009 877 Foreign exchange (net) 4,356 4,246 17, 678 Deposits— Loans and discounts 50, 383 52,086 29,110 Bank... 148 144 181 Other assets 32, 313 32, 671 36,115 Other 90 71 Note circulation 64, 703 64, 496 55, 530 Other liabilities 164 157 Demand deposits 33, 771 35, 610 39, 380 Bank of the Republic of Colombia Other liabilities 29, 480 29, 819 28, 850 (thousands of pesos): Bank of Finland (millions of mark- Gold 40,186 40,192 41,188 36,416 kaa): Foreign exchange 3,306 4,569 5,784 6,187 Gold 1,128 Loans and discounts 21,128 18, 615 17, 318 18,828 Foreign assets 2,490 Government loans and securities. 38, 538 37, 908 37, 453 37,858 Loans and discounts 1,258 Other assets 29,869 32,928 32,817 29, 962 Domestic securities 329 Note circulation 53,485 52, 576 52,334 54, 368 Other assets 118 Deposits . 52, 973 50,945 52,428 39,890 Note circulation 2,306 Other liabilities 26, 570 30, 691 29, 797 34,993 Deposits—Treasury 90 National Bank of Czecho-Slovakia i Other 773 (millions of koruny): Other liabilities 2,152 Gold 1,596 1,602 1,602 1,894 Bank of Greece (millions of drach- Foreign exchange 739 736 771 856 mas): Discounts 362 358 415 2,073 Gold and foreign exchange (net) __ 4,225 3,830 3,780 3,907 Loans 535 584 699 866 Loans and discounts 13, 366 13, 111 12, 481 8,584 Other assets 7,480 7,274 7,164 3,315 Government obligations 4,105 4,159 4,207 4,235 Note circulation 5,522 5,568 5,713 6,295 Other assets 2,465 2,083 2,016 1,805 Demand deposits 1,335 1,359 1,592 595 Note circulation 9,861 9,010 8,255 Other liabilities 3,856 3,627 3,347 2,114 Deposits 12, 840 12,194 11, 701 9,652 National Bank of Denmark (mil- Other liabilities 1,820 1,980 1,893 1,623 lions of kroner): National Bank of Hungary (mil- Gold . 117 117 118 lions of pengo): Foreign exchange 7 7 107 Gold 124 124 124 124 Discounts 38 30 30 20 Foreign exchange reserve 63 67 75 102 Loans—To Government agencies 107 98 111 55 Discounts 539 565 599 512 Other 422 324 330 148 Loans—To Treasury 343 313 314 296 Securities 188 191 207 183 Other 18 16 23 12 Other assets 118 94 104 Other assets 327 308 309 333 Note circulation 707 593 448 Note circulation 976 961 968 896 Deposits 154 121 148 92 Demand deposits 120 113 155 187 Other liabilities 138 135 156 194 Certificates of indebtedness 94 94 94 99 Central Bank of Ecuador (thou- Other liabilities 225 226 228 198 sands of sucres): Reserve Bank of India (millions of Gold. 35,952 rupees): Foreign exchange (net) 3,584 Issue department: Loans and discounts 53, 612 Gold at home and abroad... 444 444 444 Other assets 16,170 Sterling securities 1,135 1,135 595 Note circulation 63,155 Indian Gov't securities 384 384 373 Demand deposits 32,185 Rupee coin 559 583 660 Other liabilities 13, 978 Note circulation 2,386 2,395 1,887 National Bank of Egypt 2 (thou- Banking department: sands of pounds): Notes of issue department. _. 137 150 185 Gold... 6,544 6,545 Balances abroad 285 201 124 Foreign exchange 2,602 1,943 Treasury bills discounted.._. 12 54 17 Loans and discounts 9,916 6,432 Loans to Government 3 3 British, Egyptian, and other Investments 78 Government securities 29, 568 26, 583 Other assets 13 Other assets 6,337 6,662 Deposits 408 393 297 Note circulation 24, 627 21, 645 Other liabilities 116 110 110 Deposits—Government 3,393 2,755 Bank of Japan (millions of yen): Other 17, 791 15, 512 Gold 501 501 501 501 Other liabilities 9,157 8,253 Special foreign exchange fund 300 300 300 300 Central Reserve Bank of El Salva- Discounts 527 544 385 423 dor (thousands of colones): Loans—Government 3 3 3 3 Gold 13, 222 13, 207 Other 118 220 258 45 Foreign exchange. 5,313 6,891 Government bonds 2,726 2,482 2,429 1,677 Loans and discounts 1,742 556 Other assets 437 442 416 333 Government debt and securities _ 4,936 5,172 Note circulation 3,405 3,311 2,989 2,413 Other assets 1,208 908 Deposits—Government 699 711 847 388 Note circulation 16, 358 15, 374 Other 115 149 84 115 Other liabilities 392 320 373 367 1 Name changed to National Bank of Bohemia and Moravia, Prague, by decree of March 31, 1939. 2 Items for issue and banking departments consolidated. 620 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Central Banks—Continued 1940 1939 1940 1939 Central bank Central bank [Figures as of last report [Figures as of last report date of month] Apr. Mar. Feb. Apr. date of month] Apr. Mar. Feb. Apr. Bank of Java (millions of guilders): Bank of Portugal—Cont. Gold 133 133 117 Note circulation 2,373 2,055 Foreign bills 22 19 10 Other sight liabilities 956 1,262 Loans and discounts 65 72 64 Other liabilities 1,052 1,000 Other assets 117 101 114 National Bank of Rumania (mil- Note circulation * 199 194 193 lions of lei): Deposits 109 102 86 Gold 21,029 20,964 20,899 18,446 Other liabilities _ 29 28 26 Special exchange accounts 6, 903 6,641 5,540 4,027 Bank of Latvia (millions of lats): Loans and discounts 22, 520 22, 553 21, 867 14,990 Gold 71 71 71 93 Special loanss . _ ... 1,024 1,057 1,086 1,599 Foreign exchange reserve 27 28 30 46 Government debt 10,036 10,026 10,093 10, 249 Loans and discounts 220 211 206 162 Other assets 15, 785 15,131 14, 661 12, 036 Other assets 46 45 49 56 Note circulation 49,844 49, 848 48,095 39,189 Note circulation 107 110 106 89 Demand deposits 10,004 9,508 10, 741 10, 341 Deposits 194 186 189 221 Other liabilities 17, 445 17, 015 15, 310 11,817 Other liabilities 64 60 61 46 South African Reserve Bank (thou- Bank of Lithuania (millions of litu): sands of pounds): Gold 57 53 53 63 Gold 33, 822 32, 980 32, 473 26, 430 Foreign exchange 15 12 13 8 Foreign bills 8,200 8,205 7,995 7,545 Loans and discounts 168 163 160 134 Other bills and loans 214 347 190 18 Other assets 62 63 62 34 Other assets 22, 575 22, 596 21, 585 15, 347 Note circulation 171 168 167 182 Note circulation 18, 922 20, 319 17, 700 18,672 Deposits 93 88 86 31 Deposits . _ _ __ _ 41, 874 38, 811 40, 201 27, 264 Other liabilities 37 36 34 27 Other liabilities 4,015 4,998 4,343 3,404 Netherlands Bank (millions of guil- Bank of Sweden (millions of ders) : kronor): Gold 1,014 1 014 1,226 Gold 395 382 481 747 Silver (including subsidiary coin) 10 11 20 Foreign assets (net) 453 505 485 618 Foreign bills 1 2 3 Domestic loans and investments 881 738 745 205 Discounts 9 46 13 Other assets.... 821 577 614 495 Loans 271 259 213 Note circulation.. 1,537 1,342 1,349 1,041 Other assets 80 82 69 Demand deposits 375 223 373 '850 Note circulation 1,100 1 114 1,037 Other liabilities 638 637 603 174 Dp/posits—Gnvp.rnrnpnt • 8 8 Swiss National Bank (millions of Other _ .. 225 247 448 francs): Other liabilities 52 51 50 Gold. . . . 2,124 2,145 2,172 2,471 Reserve Bank of New Zealand Foreign exchange _ __ 259 310 328 264 (thousands of pounds): Discounts 270 156 274 •203 Gold 2,802 2 802 2 802 Loans. 82 79 51 34 Sterling exchange reserve 13 034 10 843 4 659 Other assets 657 662 649 684 Advances to State or State un- Note circulation 2,031 2,013 1,991 1,773 dertakings 22,105 26, 529 19, 684 Other sight liabilities 720 697 843 1,239 Investments 3,146 3,363 3,771 Other liabilities 642 642 641 644 Other assets 455 356 868 Central Bank of the Republic of Note circulation 18, 379 18,026 15, 659 Turkey (thousands of pounds): Demand deposits 20, 785 23, 511 13, 946 Gold 110,458 114,965 36,877 Other liabilities 2,378 2,355 2,180 Foreign Exchange—Free _ _ _ 12 9 21 Bank of Norway (millions of In clearing accounts 29,983 31, 695 14,557 kroner): Loans and discounts 252,465 237, 850 130,184 Gold 186 236 Securities 199,032 199, 726 192, 382 Foreign assets 99 167 Other assets _ _ _ 29, 600 29, 347 34,112 Total domestic credits and Note circulation 312, 542 302, 042 236, 268 securities 440 259 Deposits _ _ 165,426 162, 260 50, 928 Discounts 101 Other liabilities 143, 582 149, 288 120, 939 Loans 0) 38 Bank of the Republic of Uruguay Securities 120 (thousands of pesos): Other assets 57 Issue department: Note circulation 579 467 Gold and silver 86, 235 Demand deposits—Government- 12 50 Note circulation 90,161 Other 94 121 Banking department: Other liabilities (l) 81 Gold 20,062 Central Reserve Bank of Peru Notes and coin 49, 888 (thousands of soles): Loans and discounts 103,055 Gold and foreign exchange 50, 289 43, 847 Other assets 96,454 Discounts 18,126 26, 454 Deposits . _ 85, 565 Govp/rnTnp,Tit loans 105 689 91, 599 Other liabilities 183, 894 Other assets 4,552 3,798 National Bank of the Kingdom of Note circulation 123, 687 106,469 Yugoslavia (millions of dinars): Deposits 38, 953 45,087 Gold..... 2,069 2,046 2,034 1,917 Other liabilities 16, 017 14,143 Foreign exchange ___. 870 873 908 485 Bank of Portugal (millions of Loans and discounts 1,802 1,815 1,889 1,976 escudos): Government debt 3,073 3,073 3,073 2,229 Gold 921 920 National defense bills 2,261 1,916 1,612 Other reserves (net) 467 514 Other assets 3,402 3,473 3,579 3,137 Non-reserve exchange 268 189 Note circulation _. 10, 764 10,400 10,072 7,423 Loans and discounts 459 429 Other sight liabilities 1,777 1,874 2,112 1,568 Government debt 1,033 1,036 Other liabilities 935 922 911 752 Other assets 1,234 1,229 * Revised. i Figures not yet available. * Agricultural and urban loans in process of liquidation, JUNE 1940 621 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BANK FOR INTERNATIONAL SETTLEMENTS fin thousands of Swiss gold francs'] 1940 1939 1940 1939 Assets Liabilities Apr. 30 Mar. 31 Apr. 30 Apr. 30 Mar. 31 Apr. 30 Gold in bars . .- - - 28,215 30, 564 43, 747 Demand deposits (gold) _ 12, 588 12,947 9,649 Cash on hand and on current account with banks 33, 465 34,820 18,128 Short-term deposits (various curren- Sight funds at interest .. 16,852 16, 258 31, 010 cies): Central banks for own account 21,863 31,995 127, 269 Rediscountable bills and acceptances Other 2,925 5,112 (at cost) 162, 415 161, 923 216, 247 2,785 Time funds at interest 21, 963 17, 371 29,643 Long-term deposits: Special accounts.. 229, 644 255,122 Sundry bills and investments _ 195, 075 206, 639 249, 533 Other liabilities 193, 398 229, 575 192, 672 Other assets 2,434 2,357 1,516 192, 630 Total liabilities 460,419 589, 823 Total assets 460, 419 469, 932 589, 823 469, 932 i See BULLETIN for December 1936, p. 1025. MONEY RATES IN FOREIGN COUNTRIES [Per cent per annuml Netherlands United Kingdom (London) Germany (Berlin) (Amsterdam) Month ac 3 B c a m e n p o k ta n e n t r h c s s es T m b re i o l a l n s s t , u h 3 r s y Da m y o -t n o e - y day o a B n l l a o d n w e k p a e o n r s c s i e t ' s d P is r r c i a v o t a u e t 1 n e t M 1 o m ne o y n t f h or D m ay o - n to e - y d 1 ay d P is r r i c a v o t a e u t n e t M 1 o m ne o y n t f h or 1929—April 5.21 5.18 4.43 6.63 7.57 6.85 5.36 5.81 1930—April 2.48 2.49 2.28 4.46 5.57 4.40 2.52 3.08 1931—April 2.58 2.57 2.17 4.65 5.87 5.67 1.50 1.61 1932—April 2.19 2.07 1.91 iy2-i 5.12 6.31 6.17 1.02 .94 1933—April .59 .50 .61 3.87 5.25 5.05 .66 1.00 1934—April .96 .89 .88 3.87 5.11 4.76 2.07 1.85 1935—April .59 .51 .75 3.38 3.60 3.64 3.65 3.26 1936^-April .55 .52 .75 3.00 3.04 2.83 1.07 1.27 1937—April .55 .53 .75 2.90 2.71 2.55 .19 1.00 1938—April .53 .51 .75 2. 88 2.88 3.04 .13 .50 1939—April 1.40 1.36 .76 2.88 2.88 2.36 1.11 1.24 1939—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 2.75 2.23 1.90 2.24 November. 1.96 1.18 1.00 2.65 2.19 1.75 2.41 December. 1.23 1.24 L03 2.63 2.39 2.25 2.75 1940—January.. _ 1.10 1.09 1.02 2.50 2.03 1.85 2.64 February.. 1.04 1.02 1.00 2.50 2.08 1.58 2.50 March 1.03 1.02 .99 1.35 2.49 April 1.03 1.03 1.00 Sw la it n z d er- ( B B e ru lg s i s u e m ls) F (P ra ar n i c s e ) (M It i a l l a y n) Hungary S ( h S w o t e o lm d c e k ) n - Japan (Tokyo) Month d P is r c iv o a u t n e t d P is r c iv o a u t n e t d P is r c iv o a u t n e t d P is r c iv o a u t n e t co P m ri m m e e r- Day-to-day Loa to n s 3 up Discounted m C o a n l e l y rate rate rate rate cial paper money months bills overnight 1929—March 3.39 3.97 3.37 6.31 5. 66-5. 84 1930—March 2.60 3.31 2.70 6.57 5.48 1931—March .99 2.25 1.57 5.50 5. 29-5.48 1932—March 1.50 3.36 1.80 6.53 6. 20-6. 57 1933—March 1.50 2.62 2.04 4.20 5.48-5. 84 1934—March 1.50 2.07 2.75 3.00 5.29 1935—March 1.50 2.38 2.12 3.89 5.11 1936—March 2.26 1.38 3.74 5.00 4-63^ 5.11 1937—March 1.00 1.00 4.06 4.50 46^ 4.75 1938—March 1.00 1.63 3.01 5.00 4.56 1939—March 1.00 3.28 1.94 5.00 4.47 1939—July 1.00 2.30 1.88 5.00 August 1.00 2.24 1.95 September. 1.25 3.22 2.70 October... 1.25 3.19 2.34 November. 1.25 3.11 2.12 December. 1.25 3.11 2.12 1940—January... 1.25 2.94 2.12 February.. 1.25 2.68 1. 94 March 1.25 1.89 r Revised. i Beginning February 1940 figures are those published in the League of Nations Monthly Bulletin of Statistics. * No figures available since August 1939. 3 No figures available since July 1939. 4 No figures available since June 1939. 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; September 1938, p. 757; and December 1939, p. 1144. 622 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISCOUNT RATES OF CENTRAL BANKS [Per cent per annum] Date effective U K d n o i i m n t g ed - France m G C a e n e r y - ntra g l B iu b e m l a - nk N l o a f e e — n r t d - h s - S l w e a r n i - t d z- Japan b C an e k n tr of a — l M R 2 a a 9 t y e ef D fec a t t i e ve b C an e k n tr of a — l M R 2 a a 9 y te ef D fec a t t i e ve In 19 e 3 f 6 f ect June 30, _ 2 4 4 2 |» 2H 3.29 A A Be r lb g lg a e i n n u i m t a ina.. 2 5^ * J M M an a a . r r . . 2 2 5 1 1 , , , 1 1 1 9 9 9 4 4 3 0 0 6 J J L a a a v p t a a v n ia 3 3 5 .29 J A F a e p n b r . . . 1 1 4 7 7 , , , 1 1 1 9 9 9 3 4 3 7 0 6 July 7 Bolivia Aug. 9, 1938 Lithuania- 6 July 15, 1939 July 10 3 British India Nov. 28. 1935 Mexico 3 Mar. 1, 1937 Sept. 9 2 3 Sept. 25 5 Oct. 2 3 O O O c c c t t t . . . 9 2 16 0 .. 2 2 H 2H B C Ch u an i l l g a e a d r a ia.— _ 6 2y2 A D M u e a c g r . . . 1 1 1 6 5 1 , , , 1 1 1 9 9 9 3 3 3 6 5 5 N Ne e la t w h n e d r la Z n e d a s _ - 3 3 A S u e g p . t. 2 6 9 , , 1 1 9 9 3 3 9 9 Nov. 26 .. _ Colombia- July 18, 1933 Norway 3 May 13, 1940 J J D a u e n c n . e 2 1 3 8 5 ,1937... 4 6 2 Cz s e l c o h v o a - kia.. 3-4^ Jan. 1, 1936 P P e o r r u tugal 4 6 -4H M Au a g y . 2 1 0 1 , , 1 1 9 93 3 7 2 July 7 5 3 Aug. 4 4 S No e v p t. 1 3 3 3 3 ^ D Ec e u n a m do a r rk... Y2 M M a a y y 2 26 2 , , 1 1 9 9 4 3 0 8 R So u u m th a n A ia fr ic ._ a 3 3 H ^ M M a ay y 15 5 , , 1 1 9 9 3 3 3 8 M M M a a a y y y 1 1 3 3 0 0 ,1938 2H 4 3 E E F l i s n t S o la a n n l i v a d ador 3 4H D M O e c a c t r . . . 30 3 1 , , , 1 1 1 9 9 9 3 3 3 4 9 5 S S S w p w a e i i t d n z e e n rland 4 ZlA » N M M o a a v y r . . 1 2 2 7 6 9 , , , 1 1 1 9 9 9 4 3 3 0 6 9 Sept. 28 _ 3 Oct. 27 Nov. 25 2H J J A A A M a u p u u n a r g l g y . . y . . 4 6 1 2 2 1 , 7 1 1 9 4 9 .: 39 . 4 2 4 3 2y2 3 F G H I G t r a r e u a e l r n n y e m g c c e a e a r n y y 3 6 4 4 2 K ^ J A J A M a a p u n n a g r . . y . . 2 1 9 8 4 9 4 , , , , , 1 1 1 1 1 9 9 9 9 9 3 3 4 3 3 6 5 0 7 9 T U U Y u u n . d r g i o S t k o e m . e s d l S y a K . . v i R i n a . g - ._ - 4 2 4 5 J J O F u u e c b t l l . . y y 26 1 1 1 , , , , 1 1 1 1 9 9 9 9 3 3 3 3 8 6 9 5 Sept. 28 3 Oct. 26__ 2 Jan 25 1940 2 e Corrected, Apr. 9 3K i Not officially confirmed. In 194 e 0 f fect _ _ M _ ay 29, 2 2 zy* 2 3 3.29 ce C nt h ; a N ng o e r s w a si y n — ce M A a p y r . 1 2 3 7 , : d D ow en n m fr a o r m k— ty M i a to y 3 2 2 p , e r d o c w en n t ; f r S o w m e d b e } n 4 — to M 4 a J y 4 p 1 e 7 r , up from 3 to 3}4 per cent. COMMERCIAL BANKS Assets Liabilities (Figures in U m n i i l t l e io d n s K o i f n p g o d u o n m ds i sterling) re C se a r s v h es M c n a o s l o h n l t o e i a c y r n t e d at B co il u ls n t d e i d s- Se ti c e u s ri- L c o us a e t n r o s s m t - o Other Total D D e e m po a s n i d ts a Time » lia O b t i h l e it r ie 10 London clearing banks 1930—December. 208 144 322 285 933 240 1,876 962 847 254 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 1939—December. 264 167 323 580 981 280 2,350 245 11 London clearing banks 3 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—December.. 243 160 250 635 971 263 2,254 1,256 997 1939—February... 243 212 617 982 253 2,176 1,213 964 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 1,272 1,006 266 October ... 256 159 289 605 1,020 271 2,327 1,299 1,028 272 November.. 245 142 353 611 1,000 242 2,345 1, 303 1,042 248 December.. 274 174 334 609 1,015 290 2,441 1,398 1,043 256 1940—January.. 242 154 610 1,010 267 2,410 1,373 1,036 261 February.. 247 149 353 609 1,007 259 2,366 1,347 1,019 258 March 249 142 336 611 1,014 273 2,363 260 April 254 153 338 618 991 260 2,354 261 i Averages of weekly figures through August 1939; beginning September 1939 figures refer to one week near end o)if month. a Through December 1937 excludes deposits in offices outside England and Wales, which are included in total, Figures for 10 banks not available beginning 1936. 3 District Bank included beginning in 1936. NOTE.—For other back figures and explanation of tables see BULLETIN for October 1933, pp. 639-640. JUNE 1940 623 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks—Continued Liabilities France (4 large b i a n n m ks i . l lio E ns n d o f o f f r m an o c n s t ) h figures Cash D b u a e n f k ro s m 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- li O ab t i h l e it 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 7,860 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 1936—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—December. 3,756 4.060 21,435 7,692 1,940 33,678 33,042 537 721 4,484 1939—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 ___ 6,357 3,718 18, 784 7,353 1,674 33, 293 626 455 4,138 September. 5,062 3,862 20,888 7,710 1,735 34,642 34,048 594 427 4,190 October.. 4,534 3,698 23,170 7,809 1,936 36, 285 35, 675 610 534 4,328 November 4,171 3,714 25, 649 7,907 2,068 38,423 37,835 588 631 4,455 December. 4,599 3,765 29,546 7,546 2,440 42,443 41,872 571 844 4,609 1940—January. __ 4,066 4,080 29, 808 7,756 1,745 42, 850 42, 302 548 938 3,667 February _ 4,293 3,993 30,810 7,579 1,849 43, 737 43,195 542 1,034 3,753 Assets Liabilities Germany l (5 i l n a r m ge il l b io a n n s k s o . f r E ei n c d h s o m f a m rk o s n ) th figures Cash b f D a ro n u m k e s B co il u ls n t d e i d s- Loans Se ti c e u s ri- Other Total D D e e p m o a s n it d s Time o C b b f r t a r e a o n i d 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 7,416 482 880 9,091 3,857 5,233 1,986 1,828 1931—November... 173 817 1,431 6,377 807 1,127 6,062 3,252 2,810 1,328 2,341 1932—November... 143 683 1,631 4,570 991 6,161 2,958 3,203 1,146 1,550 1933—November... 131 471 1,702 3,731 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 1,027 5,376 2,435 2,941 686 1,449 1936—November... 137 269 2,567 2,729 1,112 851 5,751 2,661 3,090 579 1,334 1937—November... 148 299 3,205 2,628 1,020 812 6,264 2,912 3,352 513 1,336 1938—August 199 255 3,589 2,731 1,098 844 6,933 3,219 3,714 416 1,368 September- 270 295 3,384 2,817 1,097 876 6,915 3,311 3,603 424 1,400 October 179 261 2,743 1,183 895 7,031 3,373 3,658 422 1,427 November.. 195 270 3,643 2,685 1,406 7,234 3,531 3,703 420 1,438 939—January 184 285 3,934 2,708 1,178 7,334 3,619 3,716 414 1,436 February.... 175 307 2,798 1,145 902 7,377 3,576 3,801 410 1,427 March 219 308 3,904 2,833 1,112 901 7,458 3,765 401 1,418 April. 189 271 4,364 2,761 1,082 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 7,793 3,793 3,999 1,342 Liabilities Deposits payable in Can- Canada Entirely in Canada S l e o c a u n r s ity ada excl d u e d p in o g s its interbank f ( i 1 g 0 u r c e h s a i r n t e m re il d l io b n a s n o k f s . C a E na n d d i a o n f d m o o ll n ar th s) Cash S l e o c a u n r s ity a O n lo d t a h d n e i s r s- a f a o n f b d r r d r o e u o i m e n g a e n d 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 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 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 1,384 507 103 755 1,548 790 1937—December. _ 255 76 862 102 1,411 510 96 2,335 752 1,683 786 1938—December.. 263 65 940 166 1,463 474 88 2,500 840 1.660 782 1939—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 2,583 891 1,692 862 October 304 53 1,083 209 1,662 474 2,837 1,128 1,709 858 November. _ 295 56 1,102 157 1,665 475 2,809 1,074 1,735 851 December.. 292 53 1,088 132 1,646 490 2,774 1,033 1,741 842 1940—January 290 48 1,073 134 1,654 466 2,755 1,005 1,751 827 February. __ 273 57 1,104 140 1,638 476 2,772 1,113 1,659 829 March 265 52 1,115 166 1,599 451 2,724 1,063 1,661 836 1 Combined monthly balance sheets not published for December. Prior to merger of two of the banks in February 1932 figures refer to six large 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). 2 No figures available since June 1939. NOTE.—For other back figures and explanation of table see BULLETIN for October 1933, pp. 641-646; June 1935, pp. 388-390; and August 1939, 624 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE RATES [Averages of certified noon buying rates in New York for cable transfers. In cents per unit of foreign currency] Year or month A t r i g n e a n- A (p u o st u r n a d li ) a g B iu e m l- Brazil (milreis) B I r n i d ti i s a h g B a u ri l- a Canada (dollar) Chile (peso) S ( C y h h u a i a n n n g a - - Co b l i o a m- C sl z o e v c a h k o i - a Official Free (belga) Official Free (rupee) (lev) Official Free Official Export hai) (peso) (koruna) 1933 72.801 337.07 17.900 7.9630 31.816 1.0039 91.959 7.6787 28. 598 81.697 3.8232 1934 33. 579 400. 95 23. 287 8.4268 37.879 1.2852 101.006 10.1452 34.094 61.780 4. 2424 1935. __• - 32. 659 388.86 18. 424 8.2947 36.964 1.2951 99.493 5.0833 36. 571 56. 011 4.1642 1936 33.137 395. 94 16. 917 8. 5681 5. 8788 37.523 1. 2958 99. 913 5.1240 29. 751 57.083 4.0078 1937 32.959 393.94 16. 876 "8. 6437 •6.1983 37. 326 1. 2846 100.004 5.1697 4. 0000 29. 606 56. 726 3. 4930 32. 597 389. 55 16.894 5.8438 36. 592 1. 2424 99.419 5.1716 4. 0000 21. 360 55. 953 3.4674 1939_. 30.850 353. 38 16. 852 6.0027 5.1248 33. 279 1. 2111 96.018 5.1727 4.0000 11.879 57.061 3. 4252 1939—April.... 31. 207 372. 86 16. 838 5. 9941 5. 3759 34. 962 1. 2089 99.483 5.1735 4.0000 16.015 56. 982 May___. 31. 210 372. 89 17.016 6.0586 5. 3931 34. 916 1. 2101 99. 620 5.1733 4.0000 15. 987 57.009 June 31.217 373.12 17. 008 6. 0586 5.1737 34. 924 1. 2077 99. 773 5.1737 4.0000 13.434 57.169 y 31. 211 373. 03 16. 991 6.0571 5.0555 34.905 1. 2126 99.835 5.1703 4.0000 10.637 57.036 Aug . 31.116 367. 32 16. 968 6.0579 5. 0236 34.407 1.2111 99.494 5.1691 4.0000 7.163 57. 061 Sept.___. 318. 38 17. 028 6.0594 5.0162 29. 928 91. 255 5.1776 4.0000 57.068 Oct . 29. 770 319. 51 16. 729 6.0575 5.0503 30. 296 89. 331 5.1713 4.0000 7.638 57.151 Nov . 29. 772 312. 66 16. 490 6. 0580 5. 0322 30.127 87. 755 5.1714 4. 0000 8.353 57. 206 Dec . 29. 773 313.13 16. 577 6. 0576 5.0263 30. 032 87. 615 5.1705 4.0000 7.487 57.022 1940—Jan 29. 772 315. 82 16. 834 6.0562 5. 0132 30.140 88.018 5.1670 4.0000 7.833 57. 205 Feb..... 29. 773 315. 79 16. 859 6.0569 5. 0237 30.163 86. 654 5.1655 4.0000 7.012 57. 264 Mar 29. 773 299. 50 16. 980 6.0574 5.0269 30.179 90. 909 82.883 5.1650 4. 0000 6.409 57.130 April.... 29. 773 322. 80 280. 90 16. 891 6. 0576 5.0291 30.198 90.909 84. 238 5.1649 4.0000 5.992 56. 990 Year or month ( m D kr e a o n r n k - e) p E o g u y n p d 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 i e 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 a u n r g n y S - ) ( 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 u e a t i n l h d d e e s r r - ) Z (p e N a o e l u a w n n d d ) N (k o r r o w ne a ) y 1933.. 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 21. 429 1934.. 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 25. 316 1935.. 21.883 502. 60 2.1627 6.6013 40.258 48. 217 29. 602 8. 2471 28.707 27.778 67. 715 391.26 24.627 1936.. 22.189 509. 68 2.1903 6.1141 40.297 31.711 29.558 7.2916 29.022 27.760 64.481 24.974 1937.. 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 24.840 1938_. 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 24. 566 1939_ . 20.346 478.83 1.9948 2. 5103 40.061 .8153 27.454 19. 238 5.1959 25.963 19.303 53. 335 354.82 23. 226 1939—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 23. 515 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 23. 519 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 23. 524 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 23. 520 Aug... 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 23.376 Sept... 19. 317 432.04 1.9000 2. 2651 39.864 .7575 24.863 5.1445 23. 459 19.023 53.182 319. 75 22. 655 Oct.... 19. 291 1.8943 2.2736 40.092 .7345 25.030 5.0465 23. 510 20.151 53.115 320.81 22.697 Nov... 19. 294 1. 8964 2. 2246 40.127 .7244 24.491 17.602 5.0444 23.440 20.497 53.080 313. 96 22. 703 Dec, 19. 297 1.8136 2.2269 40.097 .7157 24.482 17.600 5.0452 23.441 18.185 53.107 315.03 22. 701 1940—Jan..__ 19. 304 1. 8156 2. 2461 40.118 .7155 24. 629 17. 586 5.0470 23: 438 16. 663 53. 208 317.09 22. 706 Feb... 19. 310 1. 7078 2. 2459 40.117 .7176 24. 572 17. 605 5.0467 23.438 16. 654 53.137 317.06 22. 709 Mar.._ 19. 311 1. 5252 2.1296 40.114 .7007 23. 247 17. 592 5. 0470 23. 438 16. 652 53.101 300. 72 22. 712 April.. 19. 307 1. 7743 1. 9980 .6546 21. 834 17. 586 5. 0452 23. 438 16. 656 53. 082 282. 05 22. 707 40.115 United Kingdom Uruguay (peso) Year or month P (z o l l o a t n y d ) ( P e o s g r a c t l u u d - o) R ( u n le m i u a ) a- (p S A o o f u r u i n t c h d a ) (p S e p s a e i t n a) ( S S m d e t o r e t l a t n l l a i t e t r s s - ) (k S r d w o e n n e a - ) ( e S f r w r l a a i n t n c z d ) - ( T p u o r u k n e d y ) Offic ( i p a o l und F ) ree tr C o o ll n e - d N tr o o n l - l c e o d n- ( Y s d l i a u n v g a i o a r - ) 1933. 14.414 3.9165 .7795 414.98 10.719 49.232 22.032 24.836 60.440 423.68 60.336 1. 7607 1934_ 18.846 1.0006 498.29 13.615 59.005 25.982 32. 366 79.047 503.93 79.956 2. 2719 1935_ 18.882 4.4575 .9277 484.66 13.678 57.173 25. 271 32.497 80.312 490.18 80. 251 2.2837 1936_ 18.875 4.5130 .7382 491.65 12.314 58.258 25. 626 30.189 80. 357 497. 09 79. 874 2. 2965 1937- 18.923 4.4792 .7294 489. 62 6.053 57.973 25. 487 22. 938 80.130 494.40 79.072 2. 3060 1938.. 18.860 4. 4267 .7325 484.16 5.600 56.917 25.197 22. 871 80.109 488. 94 64. 370 2. 3115 1939_. 18.835 4.0375 .7111 440.17 10.148 51. 736 23.991 22. 525 80.243 443. 54 62.011 36. 789 2. 2716 1939—April 18.818 4. 2448 .7056 462.80 11.004 54.273 24. Ill 22. 431 80. 279 468. 05 61. 592 2.2636 May 18. 812 4.2460 .7056 463.11 11.023 54.373 24.110 22.480 80. 290 468.13 61. 598 2. 2675 June 18.812 4. 2484 .7042 463. 32 11.023 54.509 24.107 22. 546 80.101 5.24 61. 609 35.620 2. 2674 July 18.808 4. 2506 .7035 463.28 11. 023 54. 785 24.114 22. 550 80. 021 $.15 61. 600 35.818 2. 2744 Aug 18.754 4. 2234 .7043 456.10 11.000 53.996 24.002 22.573 80.022 461.07 35. 698 2. 2729 Sept 3. 6564 394. 57 10. 492 46. 712 23.763 22. 576 79.500 399. 51 38.180 Oct 3. 6444 396.12 10.148 47.017 23.792 22.433 401.05 39.022 N De o c v 3 3 . . 6 6 0 06 4 7 4 . . 7 7 0 0 8 5 8 5 3 3 9 9 7 7 . . 4 1 1 5 1 9 0 . .0 9 3 5 9 0 4 4 6 6 . . 1 2 0 4 2 6 2 2 3 3 . . 7 7 9 9 6 8 2 2 2 2 . . 4 4 2 2 8 2 3 3 9 9 2 3 . . 4 0 7 1 6 6 5 5 . . 8 8 3 3 0 0 3 36 7 . .0 4 6 5 3 7 2 2 . . 2 2 6 6 5 4 7 9 1940—Jan.... 3. 6259 397.86 9.950 46.484 23.806 22.419 396. 39 65. 830 36. 360 2. 2595 Feb... 3. 6228 398.00 9.950 46.483 23.807 22. 418 396. 34 65.830 37.466 2. 2560 Mar... 3. 4985 398.00 9.814 46. 750 23.816 22. 417 403. 50 375.91 65.830 38.839 2. 2485 April.. 3. 4090 398.00 9.144 47.136 23. 691 22. 418 403. 50 352. 59 65. 830 39. 090 2. 2444 T Revised. NOTE.—Developments affecting averages since July 1939 have been as follows: No rates certified for following days: Argentina—Aug. 26-Oct. 16; Brazil—Sept. 1; Bulgaria—beginning Aug. 30; Canada—official rate Mar. 1-21, first reported in addition to free rate beginning Mar. 22; Denmark— Aug. 26-31 and Apr. 9-30; Egypt—beginning Sept. 2; Finland—Aug. 26-Sept. 1 and Sept. 3-5; Hungary—Aug. 26-Nov. 8 and Jan. 27-Feb. 8; Norway—Aug. 26-29 and Apr. 9-30; Poland—beginning Aug. 26; Rumania—Aug. 26-Nov. 5 and Feb. 1-Apr. 30; Spain—Mar. 30-Apr. 1; Turkey— Aug. 25-28 and beginning Sept. 2; United Kingdom—official rate Mar. 1-24, first reported in addition to free rate beginning Mar. 25; Uruguaycontrolled rate, Sept. 1-Nqv. 28, and non-controlled rate, Oct. 17-Nov. 28; Yugoslavia—Aug. 26-Nov. 5. Official rate for Australia first reported in addition to free rate beginning Apr. 1. Averages based on nominal quotations for at least 5 days a month as follows: Aug.—Australia; Sept.— South Africa; Sept. and Oct.—British India, Hong Kong, Japan, and Straits Settlements; Nov., Dec, Jan., and Feb.—British India, Germany, and Yugoslavia; Dec, Jan., and Feb.—Finland; Mar.—Finland, Germany, and Yugoslavia; Apr.—Germany, Sweden, Yugoslavia, and New Zealand. For further information concerning nominal status of exchange quotations, special factors affecting the averages, and changes in the bases of quotation, see BULLETIN for March 1938, p. 244; March 1939, p. 236; and Sept. 1939, p. 831. JUNE 1940 625 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

PRICE MOVEMENTS IN PRINCIPAL COUNTRIES WHOLESALE PRICES—ALL COMMODITIES [Index numbers] Nether- Switzer- Year or month (19 U S 2 n t 6 a i = t t e e 1 s d 00) (1 C 92 a 6 n = a 1 d 0 a 0) ( K 19 U i 3 n n 0 g i = d te 1 o d 0 m 0) (1 F 91 r 3 a = n 1 c 0 e 0) ( G 19 e 1 r 3 m = a 1 n 0 y 0) (19 I 2 t 8 a = ly 100) 1 ( 9 O J 0 a c 0 p t = o a 1 b n 0 e 0 r ) (19 la 1 2 0 n 6 0 d - ) 3 s 0= (Ju = l l 1 a y 0 n 0 d 1 ) 914 1926 100 100 i 124 695 134 237 106 144 1929 . _ 95 96 627 137 95 220 100 141 1930 86 87 100 554 125 85 181 90 126 1931 73 72 88 500 111 75 153 76 110 1932 . . 65 67 86 427 97 70 161 65 96 1933 66 67 86 398 93 63 180 63 91 1934 . . 75 72 88 376 98 62 178 63 90 1935 80 72 89 338 102 68 186 62 90 1936 81 75 94 411 104 76 198 64 96 1937 86 85 109 581 106 89 238 76 111 1938 79 79 101 653 106 95 251 72 107 1939 77 75 103 107 278 74 111 1939—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 (3 272 71 107 September 79 78 106 107 (3 288 75 117 October _ 79 79 111 (S) 107 (3 293 81 12C November 79 80 119 (*) 107 (3 300 84 123 December 79 82 122 (J) 108 (3 314 85 125 1940—January _. _ 79 83 126 (? 108 ft 320 86 128 February 79 83 129 108 317 88 130 March . 78 83 130 (2) 109 8 312 88 132 April 79 83 133 314 P134 Preliminary. 1 Approximate figure, derived from old index (1913=100). s No figures availaabblle si'n ce A"u gust 1'9"3"9. 3 No figures available since July 1939. WHOLESALE PRICES—GROUPS OF COMMODITIES [Indexes for groups included in total index above] United States (1926=100) United Kingdom France (1913=100) Germany (1913=100) (1930=100) Year or month Indus- Induspr F o a d r u m cts Foods co O i m t t i h m e e s o r d- Foods p I r n o tr d d i u a u l s c - ts p an r F o d a d r f u m o c o t d s p I r n o tr d d i u a u l s c - ts p A r t o g u r d r i u c a u c l t l s - P s r io o n v s i- a t f r n i i n d a i l s s h r e a m e w d i- p tr r i i o s a d h l u e f d i c n ts 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 1939 65 70 81 98 106 108 95 126 1939—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 82 101 108 0) 0) 108 0) 95 126 October 67 73 84 109 111 108 0) 96 126 November. 67 72 84 114 121 0) 0) 108 (0 97 126 December 68 72 84 118 124 (0 108 0) 97 127 1940—January 69 72 84 123 127 "(0 0) 108 0) 98 127 February 69 71 83 126 129 0) 108 0) 98 127 March. __ 68 70 83 125 131 0) 0) 110 0) 99 128 April 69 72 83 128 135 (0 00)) 0) i No figures available since August 1939. 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. 626 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Price Movements—Continued RETAIL FOOD PRICES COST OF LIVING [Index numbers] [Index numbers] United Eng- Ger- Nether- Switz- United Eng- Ger- Nether- Switz- Year or States land France many lands erland Year or States land France many lands erland month 1923- July July 1913- 1911- June month 1923- July 1913- 1911- June 1925=1001914=1001914=1001914=1001913=1001914=100 1925=1001914=1001930=1001914=1001913=1001914=100 1926 109 161 554 146 161 160 1926 103 170 142 168 162 1929 105 164 611 156 162 156 1929 100 164 154 168 161 1930 100 145 614 146 150 152 1930 97 158 100 147 161 158 1931 .. 82 131 611 131 136 141 1931 89 148 97 136 151 150 1932 68 126 536 116 119 125 1932 _ 80 144 91 121 141 138 1933 . 66 120 491 113 120 117 1933 76 140 87 118 139 131 1934 74 122 481 118 124 115 1934 79 141 83 121 140 129 1935 - 81 125 423 120 118 114 1935 81 143 78 123 136 128 1936 82 130 470 122 120 120 1936 82 147 86 125 U32 130 1937 85 139 601 122 127 130 1937 84 154 102 125 137 137 1938 79 141 702 122 130 130 1938 83 156 117 126 139 137 1939 77 141 123 130 132 1939 82 158 126 140 138 1939-March. 76 135 742 123 130 128 1939-March..__ 82 153 126 138 136 April 77 135 734 122 129 April .. 153 126 136 May 77 134 738 123 130 May . 153 123 126 137 June. 76 134 739 124 124 132 June 82 153 127 136 137 July 77 139 741 125 132 July 156 127 138 August 75 137 749 125 124 131 August. . 155 127 137 137 September 79 138 122 128 133 September 83 155 126 139 138 October... 78 154 122 133 136 October. 165 126 143 140 November 78 157 122 136 138 November 169 (2) 126 144 142 December. 77 157 123 137 138 December. 82 173 126 146 142 1940-January.- 77 157 124 138 139 1940-January 174 127 146 144 February. 78 161 124 140 139 February. 177 127 148 145 March 77 161 126 140 March 179 129 145 April 78 158 April 178 0) r Eevised. P Preliminary. i Revised index from March 1936 (see BULLETIN for April 1937, p. 373). » No figures available since May 1939. 3 No figures available since August 1939. Sources— See BULLETIN for April 1937, p. 373, and October 1939, p. 943. SECURITY PRICES [Index numbers except as otherwise specified] Bonds Common stocks (1926=100) Year or month United 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* U S n ta i t t e e s d 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 *83.4 104.1 94.7 78.9 132.2 »78.0 70 1932 69.5 113.2 88.6 »67.1 94.8 48.6 67.9 105.2 »50.3 46 1933 73.4 119.7 81.3 82.5 105.3 63.0 78.6 99.6 61.7 52 1934 84.5 127.5 82.1 90.7 113.4 72.4 85.7 83.3 71.1 55 1935. 88.6 129.9 83.5 95.3 107.8 78.3 86.3 79.7 82.9 55 1936 97.5 131.2 76.3 95.8 109.1 111.0 97.0 77.2 91.6 66 1937... 93.4 124.6 75.1 98.7 * 101.8 111.8 96.3 97.4 102.6 104 1938 78.9 121.3 77.3 99.9 105.9 83.3 80.8 89.7 100.1 96 1939 81 6 112 3 99.0 90.9 89.2 75.9 94.1 90 1939—March 83.1 113.6 86.0 99.0 100.9 91.7 77.1 97.9 94.4 94.0 April ... 79.4 110.8 86.6 99.0 95.2 81.9 75.1 97.9 94.9 87.2 May 80.2 113.5 85.1 99.0 98.0 83.1 77.0 103.0 94.1 89.3 June .. 81.4 113.5 84.0 99.0 96.3 86.0 76.6 98.3 92.5 91.6 July. 81.6 112.5 84.3 99.0 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 93.2 88.6 September- 80.9 106.9 00 98.9 79.6 92.4 72.0 00 92.8 92.1 October 82.9 109.5 (•) 98.9 80.3 95.3 74.9 00 92.3 87.7 November... 83.0 112.3 CO 99.0 80.9 94.2 76.0 (? 94.5 85.8 December 82.1 112.4 CO 99.0 77.2 91.8 75.7 97.8 84.3 1940—January 82.4 117.6 13 99.1 77.9 92.7 75.7 (•) 101.0 85.4 February 82.2 119.9 99.6 76.7 91.5 77.1 103.1 84.7 A M p a r r i c l h 8 8 2 2 . . 5 1 1 11 1 9 9 . . 4 8 0 0 0 0 1 9 0 9 0 . . 9 2 76.4 9 9 2 1 . . 9 5 C 7 7 7 7 . . 4 9 0 0 0 0 1 1 0 0 6 9 . . 6 3 85.7 0 Corrected. * Prices derived from average yields for 60 corporate bonds as published by Standard Statistics Co. 2 Indexes of reciprocals of average yields. For old index, 1929-1936, 1929=100; average yield in base year was 4.57 per cent. For new index beginning January 1937, January-March 1937=100; average yield in base period was 3.39 per cent. 3 Exchange closed from July 13 to Sept. 2,1931, and from Sept. 19,1931, to Apr. 11,1932. Index for 1931 represents average of months January- June; index for 1932 represents average of months May-December. 4 New index. See note 2. e No figures available since August 1939. Source*.—See BULLETIN for February 1932, p. 121; June 1935, p. 394; April 1937, p. 373; July 1937, p. 698; and November 1937, p. 1172. JUNE 1940 627 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

7edetal 1&uUication5 Copies of the publications and releases listed below may be obtained from Board of Governors of the Federal Reserve System, Washington, D. C. CURRENT RELEASES BOOKS AND PAMPHLETS DAILY THE FEDERAL RESERVE SYSTEM—ITS PURPOSES AND FUNCTIONS. Obtainable in cloth binding at 50 cents Foreign Exchange Rates (for previous day) a copy and in paper cover without charge. 128 pages. WEEKLY A set of FEDERAL RESERVE CHARTS ON BANK CREDIT, Monday: MONEY RATES, AND BUSINESS has been published by Condition of Reporting Member Banks in 101 the Board and is for sale to the public at 50 cents Leading Cities a copy. Latest issue is November 9, 1939. Bank Debits The FEDERAL RESERVE ACT AS AMENDED to October Tuesday : 1, 1935, with mimeographed supplements showing Money Rates—Open-Market Rates in New York amendments to date, has been printed by the Board City and will be supplied without charge. Wednesday: Weekly Review of Periodicals DIGEST OF RULINGS—from 1914 to October 1,1937. Thursday: Digests of rulings of Board; compilation showing Condition of Federal Reserve Banks textual changes made in the Federal Reserve Act; Condition of Reporting Member Banks in Newdigests of court decisions and opinions of the At- York City and Chicago (Also a part of state- torney General involving a construction of the Fedment of Condition of Reporting Member Banks eral Reserve Act; and digests of court decisions inin 101 Leading Cities released on following volving Federal Reserve Banks. Price $1.25 per Monday) copy. 683 pages. Friday: PROBLEMS OF BANKING AND BANK SUPERVISION. Ex- Department Store Sales cerpts from the 1938 Annual Report of the Board of Governors of the Federal Reserve System. 33 pages. MONTHLY MONETARY MEASURES AND OBJECTIVES. Three state- Federal Reserve Bulletin—released about the 4th ments by the Board on objectives of monetary policy, of the month (subscription price $2.00 per on proposals to maintain prices at fixedl evels through annum, single copies 20 cents; outside of the monetary action, and on legislative proposals relat- United States, Canada, Mexico, and the insular possessions, annual subscription $2.60, single ing to monetary measures and objectives. 8 pages. copies 25 cents) July 1937, April 1939, and May 1939. Federal Reserve Inter-District Collection System THE HISTORY OF RESERVE REQUIREMENTS FOR (Par List)—including list of State bank mem- BANKS IN THE UNITED STATES. Legislation, designabers. Semi-annual issues, January-July, and tion of reserve cities, and changes in the reserve posimonthly supplements—released about 7th of the tion of banks. 20 pages. November 1938. month National Summary of Business Conditions—re- SUPPLY AND USE OF MEMBER BANK RESERVE leased about the 16th of the month FUNDS. Explanation of analysis of sources of member bank reserve funds and uses to which such funds Business Indexes—released about the 16th of the are put as indicated by Federal Reserve and Treasmonth ury statements. 31 pages. July 1935. Bank Debits—released between the 6th and 12th of the month REVISED INDEXES OF FACTORY EMPLOYMENT. Bu- Foreign Exchange Rates—released about the 1st reau of Labor Statistics indexes adjusted for seaof the month sonal variation by Boards of Governors. 32 pages. Money Rates—released about the 3rd of the month October 1938; 10 pages, October 1939. ANALYSES OF THE BANKING STRUCTURE—As of QUARTERLY December 31, 1935. Number, deposits, and loans and Member Bank Call Report (3 or 4 times a year investments of banks classified by size of bank and depending upon number of calls for condition town and by other factors. 33 pages. reports) THE GOLD PROBLEM TODAY, by E. A. Goldenweiser List of Stocks Registered on National Securities —reprint of article, 4 pages, January 1940. Exchanges. Issued annually in February with quarterly supplements (subscription price 25 THE PAR COLLECTION SYSTEM OF THE FEDERAL cents for the List and three supplements; five or RESERVE BANKS, by George B. Vest—reprint of article, 8 pages, February 1940. more copies on one order, 20 cents per copy; fifty or more copies on one order, 15 cents per copy). THE BANKS AND IDLE MONEY, by Woodlief Thomas —reprint of article, 9 pages, March 1940. ANNUALLY CHEAP MONEY AND THE FEDERAL RESERVE SYSTEM, Bank Debits—released ordinarily in February by E. A. Goldenweiser—reprint of article, 5 pages, Annual Report (covers calendar year) May 1940. 628 FEDERAL RESERVE BULLETIN 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. SZTMCZAK CHESTER C. DAVIS JOHN K. MCKEE ERNEST G. DRAPER LAWRENCE CLAYTON, Assistant to the Chairman ELLIOTT THURSTON, Special Assistant to the Chairman CHESTER MORRILL, Secretary LISTON P. BETHEA, Assistant Secretary S. R. CARPENTER, Assistant Secretary J. C. NOELL, Assistant Secretary WALTER WYATT, General Counsel J. P. DREIBELBIS, Assistant General Counsel GEORGE B. VEST, Assistant General Counsel B. MAGRTJDER WINGFIELD, Assistant General Counsel E. A. GOLDENWEISER, Director, Division of Research and Statistics WOODLIEP THOMAS, Assistant Director, Division of Research and Statistics LEO H. PAULGER, Chief, Division of Examinations R. F. LEONARD, Assistant Chief, Division of Examinations C. E. CAGLE, Assistant Chief, Division of Examinations 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 Boston District THOMAS M. STEELE GEORGE L. HARRISON, Vice Chairman New York District LEON FRASER CHESTER C. DAVIS Philadelphia District HOWARD A. LOEB WILLIAM A. DAY Vice President ERNEST G. DRAPER Cleveland District B. G. HUNTINGTON JOHN K. MCKEE Richmond District ROBERT M. HANES ROBERT S. PARKER RONALD RANSOM Atlanta District RYBURN G. CLAY GEORGE J. SCHALLER Chicago District EDWARD E. BROWN President JOHN S. SINCLAIR M. S. SZYMCZAK St. Louis District S. E. RAGLAND Minneapolis District JOHN CROSBY CHESTER MORRILL, Secretary S. R. CARPENTER, Assistant Secretary Kansas City District JOHN EVANS WALTER WYATT, General Counsel Dallas District R. E. HARDING J. P. DREIBELBIS, Assistant General Counsel San Francisco District PAUL S. DICK E. A. GOLDENWEISER, Economist JOHN H. WILLIAMS, Associate Economist R. G. ROUBE, Manager of System Open Market Account WALTER LICHTENSTEIN, Secretary JUNE 1940 629 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CHAIRMEN, DEPUTY CHAIRMEN, AND SENIOR OFFICERS OF FEDERAL RESERVE BANKS Federal Chairman and Eeserve Federal Reserve Deputy Chairman President First Vice President Vice Presidents Bank of— Agent Boston Frederic H. Curtiss... Henry S. Dennison Roy A. Young William W. Paddock William Willett 1 New York Owen D. Young Beardsley Ruml George L. Harrison Allan Sproul Ray M. Gidney Walter S. Logan Leslie R. Rounds Robert G. Rouse John H. Williams Philadelphia... Thomas B. McCabe.. Alfred H. Williams... John S. Sinclair Frank J. Drinnen W. John Davis Ernest C. Hill Clarence A. Mcllhenny * Cleveland George C. Brainard... Reynold E. Klages Matthew J. Fleming Frank J. Zurlinden William H. Fletcher William F. Taylor 2 George H. Wagner Richmond Robert Lassiter.. William G. Wysor. Hugh Leach John S. Walden, Jr John G. Fry George H. Keesee 1 Atlanta— Frank H. Neely__ Joe Frank Porter _ Robert S. Parker William S. McLarin, Jr.._ Malcolm H. Bryan Harry F. Conniff Chicago Robert E. Wood Frank J. Lewis George J. Schaller Howard P. Preston James H. Dillard William H. Snyder' Clifford S. Young St. Louis__ William T. Nardin.... Oscar G. Johnston William McC. Martin.. F. Guy Hitt Olin M. Attebery Clarence M. Stewart' Minneapolis ... Walter C. Coffey Roger B. Shepard John N. Peyton Oliver S. Powell Ernest W. Swanson Harry I. Ziemer 2 Kansas City... Robert B. Caldwell... John J. Thomas _ George H. Hamilton Carroll A. Worthington _ James W. Helm * Harold G. Leedy Dallas James H. Merritt Jay Taylor Robert R. Gilbert. Ethan B. Stroud Robert B. Coleman William J. Evans Walter 0. Ford 1 San Francisco- Raymond 0. Force- St. George Holden William A. Day. Ira Clerk Cecil E. Earhart 1 William M. Hale Richard B. West i Cashier. * 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 Robert M. O'Hara Helena Branch Robert E. Towle Cleveland: Kansas City: Cincinnati Branch Benedict J. Lazar Denver Branch Joseph E. Olson Pittsburgh Branch _. Percy A. Brown Oklahoma City Branch... Cyrus E. Daniel Richmond: Omaha Branch Lloyd H. Earhart Baltimore Branch.. _ W. Robert Milford Dallas: Charlotte Branch William T, Clements El Paso Branch. Joseph L. Hermann Atlanta: Houston Branch William D. Gentry Birmingham Branch __ Paul L. T. Beavers San Antonio Branch — Miers Crump Jacksonville Branch George S. Vardeman, Jr. San Francisco: Nashville Branch Joel B. Fort, Jr. Los Angeles Branch W. Norman Ambrose New Orleans Branch Lewis M. Clark Portland Branch Pavid L. Davis Chicago: Salt Lake City Branch Winnie L. Partner Detroit Branch.__ Seattle Branch Clarence R. Shaw St. Louis: Little Rock Branch Arthur F. Bailey Louisville Branch „ Charles A. Schacht Memphis Branch.. _ William H. Glasgow 630 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

From a Painting on J\ all of Board Room. Federal Reserve Huilding* Jl'asliington Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis