Federal Reserve Bulletin, 1940-07

FEDERAL RESERVE BULLETIN JULY 1940 Review of the Month—Treasury Financial Operations From the Board's Correspondence—The Currency Function of the Federal Reserve Banks Annual Reports of Foreign Central Banks—Switzerland and Argentina Earnings and Expenses of Member Banks The Problem of Manufacturing Capacity 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—Treasury Financial Operations 633-638 The Problem of Manufacturing Capacity, by George Terborgh 639-646 From a Legal Standpoint: Stock Deposited with Broker for Him to Lend 647-649 Executive Order and Regulations on Transfers of French Property 649 General Rulings and General Licenses Issued by Secretary of the Treasury. . 649-654 Financial Transactions under Neutrality Act of 1939. . . 654 From the Board's Correspondence: The Currency Function of the Federal Reserve Banks 655-657 Current Events 657 Foreign Banking Laws and Reports: Annual Report of the Swiss National Bank 658-664 Annual Report of the Central Bank of the Argentine Republic 664-676 Canadian Financial Measures 677-678 National Summary of Business Conditions 679-680 Financial, Industrial, Commercial Statistics, United States (See p. 681 for list of tables.) 681-718 Earnings and Expenses of Member Banks . . 719-721 International Financial Statistics (See p. 723 for list of tables.) . . . . 723-741 Federal Reserve Publications 742 Board of Governors and Staff; Open Market Committee and Staff; Federal Advisory Council 743 Senior Officers of Federal Reserve Banks; Managing Directors of Branches. . . 744 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

FEDERAL RESERVE BULLETIN VOL. 26 JULY 1940 No. 7 *Ti L inancla Recent national defense legislation, which as well as on Treasury policy about its provides for larger expenditures and in- working balance. creased taxes, has consider- The principal change in expenditures for FoirCl194ltlo°k ably modified the Govern- 1941 will be the greatly increased outlays for national defense. On the basis ment's fiscal outlook. On the basis of estimates presented at the hearings Nr<T rtmenSe of le£islation enacted by July 2, program in June on the 1940 Revenue Bill and subse- appropriations, together quent tax legislation, the budget deficit for with contract authorizations for the Army the fiscal year 1941 may be about $3,600,- and Navy for the fiscal year 1941, aggregate 000,000. This figure excludes the contem- over $5,000,000,000, an amount more than plated repayment of capital funds by certain two and one-half times as large as the defense Government corporations. Some of the na- funds voted by Congress for the fiscal year tional defense legislation is still under con- 1940. The national defense legislation also sideration by Congress and this estimate is, contains a number of provisions designed to therefore, subject to change. The above esti- expedite the program. It authorizes the mate compares with a corresponding figure award of Army and Navy contracts by direct of $2,400,000,000 estimated in the January negotiation with private manufacturers in- Budget Message, including the new taxes stead of by the customary practice of comthen recommended, and with about $3,600,- petitive bidding. The Government is per- 000,000 in each of the past two years. Fiscal mitted to make advance payments from naoperations of the Treasury for the fiscal years tional defense appropriations to contractors 1937-1940 are shown in the table on the next for supplies or construction in amounts not page. exceeding 30 per cent of the contract price. To meet the deficit in the fiscal year 1941, Funds are provided for construction by the the Treasury will have available substantial Government of plant and equipment and for amounts from net receipts in the old-age in- training of personnel. The Reconstruction surance and unemployment insurance trust Finance Corporation is given power to make funds and from the repayment of capital loans to business concerns or to Governmentfunds by certain Government corporations, owned corporations for plant expansion or and other funds will be raised by the sale of construction and for other purposes related United States savings bonds. On the basis of to the national defense program. past experience and announced plans, re- To meet these larger expenditures Conceipts from these sources may exceed $2,500,- gress authorized the temporary issuance of 000,000. The extent to which additional $4,000,000,000 of special national defense funds will be raised by offering direct obliga- obligations above the statutory debt limit of tions in the open market will depend princi- $45,000,000,000. Increased taxes enacted pally on what the deficit and the receipts from under the new Revenue Act are estimated to the sources mentioned above turn out to be, yield $1,000,000,000 on a full-year basis but, 633 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Review of the Month owing to the lag in the collection of certain :ered direct and guaranteed debt was almost taxes, receipts during the fiscal year 1941 $1,300,000,000 less, the difference being acwill be considerably less than this amount. counted for largely by the reduction in the The law provides for the lowering of theworking balance. personal exemption to $2,000 for married and Total expenditures in the fiscal year 1940 $800 for single individuals, an increase in increased by about $330,000,000 to a total of surtax rates In the $6,000-$100,000 net in-$9,540,000,000, including transfers to trust come brackets, and an increase of 1 per cent accounts which are largely invested in special in the corporate tax rate. In addition a "de- ssues of Treasury obligations. As shown in fense tax" to be in effect for 5 years was the table below, expenditures for national enacted to provide for a 10 per cent increase defense showed a steady rise during the year in all income taxes and varying increases in to a total of $1,560,000,000, an increase of most of the miscellaneous internal revenue $400,000,000 over the preceding year. Outtaxes. Imposition of an excess profits tax was ays for the Agricultural Adjustment proalso considered by Congress, but was post- gram also increased substantially to a record poned for later action. On July 1 the Presi- total and there were smaller increases in sevdent recommended to Congress the enactment eral other groups of expenditures. These inof a steeply-graduated excess profits tax. creases were partly offset by a reduction of For the fiscal year which ended on June 30, about $670,000,000 in expenditures for the 1940, the Federal Government had an excess Work Projects Administration and the Na- Treasury receipts of expenditures over re- tional Youth Administration, which were and expenditures ceipts of $3,600,000,000, ex- lower throughout the year than in 1939. cluding debt retirements but including transfers to trust accounts. This deficit was TREASURY EXPENDITURES, 1938-1940 * about the same as in the preceding fiscal year. [In millions of dollars] To meet its requirements the Treasury issued 1Trans- $1,500,000,000 of publicly-offered direct obli- Total t f i • i e d o V j. \ n T e n aQ s - a - e lAAA S se o i c t c y u ia r- l W N a Y n P d A A e I d s n t e t e b o r t n - c f t o e r a r u u s c n s - t t t o s2 o A th ll er TREASURY FINANCIAL OPERATIONS, 1937-1940 1938-1939: [Irfmillions of dollars] July-Sept 2,196 283 116 78 559 176 227 757 Oct.-Dec 2,308 292 187 87 621 249 141 732 Fiscal years Jan.-March.__ 2,225 285 208 78 546 167 157 782 April-June 2,481 303 276 82 513 349 161 797 1937 1938 1939 1940 1939-1940: Budget accounts: July-Sept 3 2,413 331 169 96 401 185 283 3 949 E R x ec p e e i n p d ts itures _ 8 5 , , 4 29 4 4 2 6 7 , , 2 62 4 6 2 9 5 , , 2 6 1 6 0 8 9 5 , , 5 9 3 2 7 5 J A O a p c n t r . . i - - l M D -J e a u c r n c e h 2 2 2 , , , 3 3 4 3 3 5 5 7 2 4 3 4 0 5 6 3 8 6 3 3 1 1 5 8 7 2 3 1 8 8 0 4 2 2 4 3 3 0 9 7 4 6 1 2 2 3 0 8 7 2 4 1 1 1 1 6 4 5 4 0 9 7 7 77 7 4 4 0 2 Deficit- -3,149 -1,384 -3, 542 -3,612 Fiscal year totals: Trust and other accounts, net re- 1938-1939 9,210 1,163 787 325 2,240 941 685 3,069 ceipts (+) or expenditures (-) +597 +1,038 +1,225 +1,028 1939-1940 9,537 1,559 1,020 364 1,572 1,041 74t77 3,234 Change in publicly-offered direct debt +2,437 -271 +2,252 +1,508 1 General and special accounts on basis of Daily Treasury Statement, Change in guaranteed debt -53 +188 +597 +79 excluding debt retirements. Change in working balance 1 -168 -429 +532 -997 •i Including expenditures for retirement funds, old-age insurance trust fund and railroad retirement account. 3 Including Treasury payment of $120,000,000 to Commodity Credit * The working balance has been adjusted to include gold held in an Corporation for restoration of capital impairment. inactive account by the Treasury during the period December 1936 to April 1938. gations, of which $1,040,000,000 were United Total receipts in 1940 aggregated about States Savings bonds, and reduced its work- $5,930,000,000, an increase of over $250,ing balance by $1,000,000,000. The remainder 000,000 as compared with 1939. Revenue colwas covered by net receipts in trust funds and lections in 1940 were the largest of any recent other Treasury accounts. As shown in thefiscal year except 1938, when income taxes table, although the deficit in the fiscal year reflected the high incomes of the calendar 1940 was close to that of the preceding years 1936 and 1937. Receipts from taxes fiscal year, the increase in the publicly-of- which reflect relatively promptly changes in 634 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Review of the Month business conditions, including most of the 1939, when new issues of Treasury bonds miscellaneous internal revenue taxes, cus- exceeded retirements of notes. In the period toms, and social security taxes, increased January-June 1940 there were no new cash throughout the year. Miscellaneous receipts sales of such obligations but a reduction of also increased considerably, partly due to the $300,000,000, owing to the retirement of payment to the Treasury in June of $44,000,- $150,000,000 of Treasury bills in January 000 by the Commodity Credit Corporation and to small cash payments of Treasury notes because of appreciation in its assets during and bonds maturing during the period and the year ended March 31, 1940. Income tax not exchanged for new issues. The amount collections for the year as a whole were some- of guaranteed debt increased by less than what lower than in the preceding year; a de- $100,000,000 during the year as a whole cline in these receipts during the first half of with a decrease in the latter half. Sales of the fiscal year, July-December 1939, reflect- new notes by the Reconstruction Finance Coring calendar year 1938 incomes, was largely poration and the Commodity Credit Corporaoffset by increased receipts during January- tion were offset largely by redemptions of June 1940, when collections were based upon maturing bonds of the Home Owners' Loan the higher incomes of the calendar year 1939. Corporation and the Federal Farm Mortgage Corporation. Changes in the debt structure TREASURY RECEIPTS BY QUARTERS, 1938-19401 during the fiscal year 1940 are shown in the [In millions of dollars] following table: In- Social Misc. come Secur- inter- Cus- All Total taxes ity nal rev- toms other UNITED STATES GOVERNMENT INTEREST-BEARING taxes 2 enue OBLIGATIONS, DIRECT AND GUARANTEED 1938-1939: [In millions of dollars] July-Sept 1,509 579 166 636 80 48 J O a c n t . . - - M De a c rch 1 1 , ,4 4 1 6 8 3 5 6 5 1 9 1 2 1 2 6 8 7 4 5 9 6 7 3 8 7 3 6 4 5 6 0 Out- Increase or decrease April-June 1,278 440 180 535 79 44 stand- 19 J J O 3 u a 9 n c l -1 y t . 9 - . - M - 4 S D 0 e a : p e r t c c h ? 1 1 1 , , , 4 6 2 4 9 9 7 3 8 4 3 7 0 7 9 9 3 1 2 1 1 5 8 9 4 2 5 7 5 51 1 6 4 5 1 8 8 9 8 9 0 6 5 6 2 2 2 J 1 i 3 u n 9 0 n 4 g , e 0 T f y i 1 o s e 9 c t 4 a a a r 0 l l, J J a 1 a u 9 r n n y 4 u e - 0 - c J e 1 D u m 9 l e 3 y b - 9 - er April-June 1,488 552 208 555 81 3 92 Fi 1 1 sc 9 9 3 3 a 8 9 l - - y 1 1 e 9 9 a 3 4 r 9 0 totals: 5 5, , 9 6 2 6 5 8 2 2 , , 1 1 8 2 9 5 8 7 3 4 8 0 2 2 , , 3 23 4 2 5 3 3 1 4 9 9 2 1 6 8 8 8 Publ T T T ic r r r l e e e y a a a - s s s o u u u ff r r r e y y y r e b n a d i o n l t l d d e s s i p r r e e c - t w o a b r l i b g o a n ti d o s ns: 2 6 1 6 , , , 3 3 6 0 8 3 2 3 3 +1 - , 8 3 - 6 3 5 0 6 + - - 3 1 1 2 5 8 6 2 0 + -1 1 + , , 0 6 1 4 6 4 0 2 7 U. S. Savings bonds.: 2,905 +1,037 +696 +341 i General and special accounts on basis of Daily Treasury Statement. Securities issued to Gov't agencies 2 Including taxes under Social Security Act, on carriers and their and trust funds 4, 775 +1,005 +543 +462 employees, and railroad unemployment insurance contributions. Other direct obligations * 379 -22 -10 -12 3 Includes $44,000,000 payment to the Treasury by the Commodity Credit Corporation because of appreciation in its assets for the year Total direct obligations 42,376 +2,491 +931 +1,559 ended March 31, 1940. Guaranteed obligations 6,529 +79 -174 +253 During the fiscal year 1940, the publicly- 1 Includes adjusted service bonds of 1945 issued to veterans and postal offered direct debt was increased by about savings bonds formerly issued to depositors in the postal savings system. $1,350,000,000, exclusive of During January-June 1940 refunding op- Treasury debt $150,000,000 of Treasury erations were carried out for about $1,090,operations , , ,. , 000,000 of Treasury notes and bonds due or bonds sold directly to Treascallable in June. The holders of 1% per cent ury trust and investments accounts during notes were offered % per cent notes maturthe period December-March. Of the total ing in 5 years, while holders of 3% per cent increase, $1,040,000,000 represented United bonds were offered 1 per cent, 31,4-year notes. States savings bonds, and the direct debt Approximately $720,000,000 of the maturing traded in the open market increased by notes and $280,000,000 of the called bonds only about $300,000,000. As shown in the were presented for conversion. The net retable, the increase in this type of debt ocsult was a moderate decline in the amount of curred during the period July-December JULY 1940 635 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Review of the Month Treasury bonds outstanding and a somewhat Recent fluctuations in the United States smaller increase in notes. In January there Government security market have reflected was a reduction of $150,000,000 in the ~ largely the influence of war deamount of Treasury bills outstanding. The Government , -^ T» • total amount of so-called open-market direct security velopments m Europe. Prices and guaranteed obligations outstanding market on j u ne io were sharply below showed a decline of almost $500,000,000 in this year's high of April 2, with the declines the half-year period. largely concentrated on a few days. Declines While the available supply of United States occurred following the invasion of Denmark Government securities decreased in the first and Norway on April 9 and the invasion of half of this year, New York Belgium and Holland about a month later. pf City banks increased their hold- Of the total decline of 41/2 points in the United Government ings of such obligations by over States Treasury 1960-65 bonds from April 2 securities $600,000,000 in the period. to June 10, 1 point occurred on April 9 and 3 points from May 10 to May 14. The market Holdings of banks in other leading cities outwas steady from the middle of May until side New York decreased by $190,000,000, June 10, and turned strong on June 11. By and those of country banks also declined June 28 the 1960-65 bonds had shown a gain up to the end of March, the latest date of 2% points. for which figures are available. According The yield on the 1960-65 bonds on June 28 to available information, the amount of Govwas 2.36 per cent, compared with 2.26 per ernment obligations held by life insurance cent at the all-time high in prices on June 5, companies has increased since the first of the 1939. Within this period, however, wide year and it is not likely that savings banks, fluctuations occurred. After the peak on which have been gaining deposits, reduced June 5 of last year, prices showed a tendency their security holdings. Business corporato decline gradually until about the middle tions may have reduced their holdings of of August, when the momentum of the de- Treasury bills as banks acquired additional cline began to increase as the prospect of war bills in the period. It would appear that inin Europe became more imminent. By the dividuals sold some open-market issues on end of August prices were about 2% points balance during the period; while at the same below the peak; with the outbreak of war time individuals as a group acquired substanon September 1 the market broke sharply on tial amounts of United States savings bonds. a large volume of offerings and an almost New York City banks substantially incomplete absence of buying. The low was creased their holdings of Treasury bonds in reached on September 21, when the 1960-65's the first quarter of the year and of Treasury were about 9 points below the peak of June 5. bills and notes in the second quarter. Chicago The subsequent recovery to April 2, 1940, banks accumulated Treasury bills during the about offset the previous losses. After Sepearly weeks of the year but sold a large part tember 21 prices were relatively stable for a of them to customers prior to the April I Illifew days before beginning a sharp rise, which nois tax date. Declines in portfolios of other continued until early in January 1940. A reporting member banks were principally in slight reaction occurred in January, followed bonds. Reflecting the refunding of the by a relatively stable market until the end of 1940-43 bonds on June 15, reporting mem- February. Early in March prices resumed ber bank holdings of Government bonds detheir sharp upward movement, after the clined by about $150,000,000 during the week Treasury's announcement of the new financended June 19 and holdings of notes showed ing, and reached a peak on April 2. As prea slightly smaller increase. viously mentioned, the decline after April 2 636 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Review of the Month occurred largely on the days of renewed ex- or callable after 5 years. Subsequent adpansion of war in Europe. In contrast to vances in Government security prices were conditions at the opening of hostilities last rapid at times and from November to early September, however, offerings in April and April a total of $95,000,000 of securities was May were not large and buyers were present sold. in the market at practically all times. During the recent decline in the market The yield on the 1960-65 bonds increased from the peak on April 2, the System again by about V2 of 1 per cent during the severe entered the market on several days. In strikdecline from June to September 1939—from ing contrast to the situation in September, 2.26 to 2.78 per cent—and declined by the however, offerings were not large and for the same amount from September 1939 to April most part were not pressing on the market 1940. From April to early June the yield for any price that they would bring. Buyincreased by *4 of 1 per cent to 2.52 per cent ing on a scale-down was present at almost all and then declined to 2.36 per cent on June times. Prices lost only about one-half as 28, which was only Vs of 1 per cent abovemuch as in September, and purchases by the the all-time low. These changes are shown System for the purpose of maintaining oron the chart. derly conditions in the market were only $10,- 000,000 for the period. With the sharp in- YIELD ON 1960-65 TREASURY BOND crease in prices after June 10, the System sold .Y 1999 TO DATE about $25,000,000 of Government securities. Industrial activity increased sharply in May and June, following little change in April and a considerable de- Recem business dine earlier in the year. The developments . most marked increases were reported in the iron and steel and the cotton and woolen textile industries where declines had been greatest in the first quarter. In the machinery and chemical industries, and also in mining, activity continued at or near the high rates maintained since last winter, while in the aircraft and shipbuilding industries 3.00 there was further expansion. The Board's 1939 1940 Source: Treasury Department. Daily figures; latest is for seasonally adjusted index of industrial pro- June 27. duction, which had declined from a peak of In the early part of September 1939, ac- 128 last December to 102 in April, rose to 106 companying rapidly falling prices, increasing in May, and preliminary data indicate a fur- „ . , „ offerings, and a scarcity of ther rise to about 115 in June. Federal Reserve ., _, , , ~ National income payments declined someopen-market buyers, the Federal Open what after the turn of the year but during the operations Market Committee made spring months changes were largely seasonal substantial purchases, with a view to pre- in character and in June there was probably venting the development of disorderly condi- an increase. Distribution of commodities to tions in the market. The aggregate amount consumers has advanced recently, following of securities purchased by the System from some reduction during the first four months August 28 to September 25 was $473,000,000, of this year and a temporary sharp decline about three-fourths of which were bonds due in the latter half of May. 637 JULY 1940 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Review of the Month In the construction industry contract will have to be paid for in dollars or in pounds awards for private residential building have sterling purchased with dollars at the official risen to the highest level in the past decade, rate, while the British authorities have underand the amount of private nonresidential taken negotiations with the New York banks building has also increased. Publicly-financed to obtain their cooperation in a plan designed construction this year has been at a lower to direct through official market channels level than in other recent years. most other commercial and financial pay- Prices of basic industrial materials, par-ments of a current nature from this country ticularly metals and textiles, advanced in the to the sterling area. early part of June, accompanying a substan- It was also announced that the British autial increase in buying; subsequently, as the thorities are planning to proceed at once with volume of buying declined, quotations for the negotiation of bilateral payments agreecertain of these materials were lowered. ments on an official sterling basis with all the Prices of most foodstuffs showed little change remaining countries with which the sterling during June. In general basic foodstuffs are area maintains trade relations, excluding currently at about the same level as a year Switzerland, which as a free currency country ago, while industrial materials are consider- will be dealt with on the same basis as the ably higher. United States. It is anticipated that these The free sterling market in New York has agreements will effectively isolate the sterling been vitally affected by a new series of regula- exchange markets in these countries from the tions announced by thefree sterling markets in the United States s British exchange con- and Switzerland. trol authorities on June In view of the extensive curtailment which 7. These regulations went into effect in thehas been, or promises to be, effected in the United Kingdom immediately, with certain sources of supply and demand in the free sterinterim exceptions, and are gradually being ling market, this market should lose much of introduced in the remaining sterling area its economic significance. It is impossible, countries in the form of orders by the local however, to appraise adequately the new posiauthorities. The object of the new measures tion of free sterling until all the projected is eventually to eliminate most of the sources measures have materialized and full details of supply and demand of free sterling. thereof are available. On June 6 the market, When the new regime is fully established, anticipating official action of some sort on all payments of a current nature by resi- free sterling, drove the rate strongly upward dents of the sterling area to residents of thefrom around $3.20 to $3.80. Since the an- United States, including payments for Amer- nouncement of the new regulations, the rate ican exports, for financial and commercial has fluctuated from day to day in an erratic services rendered by residents in this country, manner, having touched a low of $3.54 on for interest and dividends due to residents June 20 and a high of $4.01 on June 27. here, etc., will normally be effected only in Meanwhile, the free rate on the French dollars so that no supply of free sterling can franc closely followed the movements of free arise from such transactions. Also the sale sterling until June 17, when dealings in in British markets of foreign-owned securi- French francs in the New York market ties is to be suspended, although cash balances were suspended following issuance of an maintained there by non-residents will still Executive Order on that date with respect to be saleable without restriction in the free the transfer of French-owned property in sterling market. Conversely, all merchandise this country.* exports from the sterling area to this country * For text of this and related Orders, see p. 649. 638 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

I he ftiottlam o*k Manu^actutlna &apacitu by GEORGE TERBORGH Senior Economist Division of Research and Statistics T HE last quarter of 1939 saw a level of mission. Detailed studies of this sort are, industrial activity roughly comparable however, beyond the scope of this article, with the peak of 1929, but accompanied by which is confined entirely to a discussion of a large surplus of unemployed labor, esti- certain general aspects of the problem of mated by the conventional methods at eight capacity. That such a discussion may be or nine million workers. During this period timely and of some value, even though largely a considerable number of manufacturing in- in the nature of philosophizing, is indicated dustries appear to have operated at or near by the wide prevalence of misconceptions on "capacity." This situation suggests a present the subject. deficiency of capacity in many lines relative The discussion falls into two parts, the first to the amounts that would be needed if pro- dealing with capacity for a single product and ductive activity a,s a whole were to rise high the second with manufacturing capacity in enough to provide reasonably full employ- general. ment for our labor force. These deficiencies do not imply a lack of Capacity for a Single Product the basic elements from which productive capacity is created, such as natural resources, It is a popular notion that for each and manpower, technical knowledge, organizing every article produced in this country we ability, and the like. These we have in abun- have at this moment a definite, measurable, dance. We have also an abundance of funds productive capacity. Our capacity is so many to finance new capacity. What the deficien- automobiles, so many radio sets, so many cies do imply, however, is the necessity for mousetraps per day or per week. This conmaking many adjustments in our productive ception is usually derived from an exclusive facilities, both by adapting existing capacity preoccupation with mechanical factors of to new demands and by creating additional production. Present capacity is considered capacity, before we can realize the level of equivalent to the maximum output practically production made possible by our present labor attainable from the present mechanical faciliforce. ties of the industry. It must be evident that this problem of Mechanical limits to production.—Even adjustment has been greatly aggravated by from this exclusively mechanical standpoint, the recent intensification of the war in Eu- the measurement of capacity presents many rope and by the launching of a huge defense difficulties. The industry in question may program in this country. The development operate normally on a single-shift basis. overnight of a tremendous demand for ar- Should capacity be reckoned on this basis or ticles not hitherto produced by American in- under continuous operation ? Production may dustry, or produced in relatively insignificant have a characteristic seasonality. Should amounts, has created capacity problems in- this be fully allowed for? There may be comparably more numerous and urgent than some unused obsolete machinery in going those attending a more normal expansion of plants. Other plants may be obsolete and idle production. in their entirety. Should this out-of-date An analysis of these problems on an in- capacity be counted ? There are many plants, dustry-by-industry and product-by-product now producing other articles, that could be basis is now being undertaken for certain switched to the production of the article in lines by the National Defense Advisory Com- question by a very minor retooling and re- 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. 639 JULY 1940 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Problem of Manufacturing Capacity arrangement of machinery. Should this steel ingots, it can recede only slowly, and readily convertible capacity be included ? The may be restrictive for an extended period. answers to these questions may give esti- Between these two extremes lie the great bulk mates of capacity varying within the widest of manufactured products. Their mechanical limits. capacity has neither the almost instant ex- Consider, for example, the question of pansibility that comes from access to a large multiple-shift operations. Outside the con- pool of quickly convertible facilities, nor the tinuous-process industries where three-shift rigidity that comes from the use of heavy and operation is dictated by technical require- highly specialized equipment that cannot be ments, the steel industry for example, Amer- augmented by conversion from other lines. ican manufacturing plants operate normally It is expansible through the process of cona single shift in the overwhelming majority version, but only gradually and within limits. of cases.1 If the plant capacity of a one-shift If we exclude from our estimates of meindustry is computed on a three-shift basis, chanical capacity the facilities that can be we at once almost treble it, while limiting the mobilized by transfer and conversion from likelihood of capacity operations to rare in- mechanically similar lines of production (instances in which the demand for the product cluding those mobilized by the farming out trebles before additional capacity can be of operations to contractors) we obtain a mobilized. result that is meaningless for a vast number Again, consider the question of the conver- of manufactured commodities, and that is of sion and transfer of facilities from mechani- questionable significance for many more. If, cally similar lines of production. If we in- on the other hand, we include these facilities, clude as a part of our capacity for producing we derive a measure of capacity that grows an article the facilities that can be readily with time. How much time should we allow mobilized in this way, we can find literally for in an estimate that purports to represent thousands of items for which there are no the present capacity of the industry? This serious mechanical limitations to production question leads to another: If we include in within any range of expansion likely to be present capacity the facilities that can be encountered. Take the merchandise dis- added by conversion within a certain period, played in a variety store, for example. The should we not also include new plant and fabrication of most of the items utilizes ma- equipment that can be added during the same chinery and equipment that is readily con- interval ? vertible to any of a variety of similar prod- The solution to these puzzling questions ucts. In effect, it can draw on a mechanical lies in viewing capacity dynamically rather "pool." Through the mobilization of facilithan statically. The volume of physical faties currently devoted to other and less profitcilities that happens at this moment to be able items, output can be expanded rapidly devoted to the production of a given article 'to almost any figure. What is our mechanical may mean much or little, depending on the capacity to produce mousetraps? Doubtless technological factors involved; what is imif something occurred to create sufficient deportant in all cases, however, is how rapidly mand the country could be inundated with and how far these facilities will be expanded them in a month. The amount of machinery in response to increasing mechanical requireand floor space that happened to be devoted ments of production. Will they keep pace to mousetraps at the outset would be of little with requirements or lag behind? The thing or no significance. to emphasize is the movement of capacity This is, of course, an extreme case, but it through time, not its magnitude at a single illustrates a principle of general applicability. moment. Mechanical capacity does not constitute a Non-mechanical limits to production.— fixed "ceiling" to production. It is typically Even if we take simply the mechanical facilia ceiling that begins to lift before it is ties currently assigned to the production of reached. For a product like mousetraps, it an article, we find that their full capacity is may recede so fast that its restraining effect, seldom immediately available. Unless these if any, is but momentary. For a product like facilities are already operating at capacity, a number of time-consuming adjustments are 1A special tabulation from 1937 census returns, covering 1200 necessary before maximum output is reached, establishments in the machine tool, motor vehicle, railway equipment, and explosives fields, shows 93 per cent reporting a one- such as the hiring and training of additional shift day as "normal." 640 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Problem of Manufacturing Capacity workers, the organization of extra shifts, the be obtainable from existing mechanical faplacement of contracts with suppliers, and cilities if nothing stood in the way, let us so on. These adjustments may take a year, make it the output that would actually be a month, or only a week, but until they are forthcoming, under certain specified condiaccomplished the existing mechanical capac- tions of demand, with all supply conditions ity is only partially available. as they really are. It might be represented These non-mechanical impediments to the by a line, the successive points on which show expansion of output are, while they last, just the amounts of production forthcoming, as truly a limitation of the effective capacity under the given conditions, after increasing of the industry as a mechanical deficiency intervals of time. In this way we allow for would be. They are, in fact, the limitations the effect of all limitations on output, whether that become effective first in most industries mechanical, human, or organizational, and when production falls behind demand. Thus for the effect of all measures taken to overin the typical case of a one-shift industry, it come these limitations, including the creamay take months to organize and man the two tion of new plant capacity. additional shifts required to attain the full The only valid test of effective capacity is limits of mechanical capacity. performance. Moreover, it is performance The process of pushing out the human and under specific circumstances. There may be organizational limits to production, especially as many estimates of capacity as there are if it goes so far as the multiple-shifting of possible combinations of conditions, both of normally one-shift industries, is likely to be supply and of demand. To take an example accompanied by the process of pushing out on the supply side, the capacity in question the mechanical capacity itself. Consider, for may depend on the general level of producexample, the responses that a representative tive activity at the time. The general level manufacturing industry makes to a radically of activity affects the abundance of the availincreased demand for its product. Existing able skilled labor, the availability of mechaniproducers put part-time workers on a full- cal facilities suitable for conversion, the time basis; renovate their idle equipment and rapidity with which new equipment can be put it in service; run their plants overtime; procured and installed, the ease with which put on extra shifts; acquire and convert to operations can be farmed out to contractors, their production floor space and equipment and numerous other factors. Thus it may formerly used for other purposes; erect new be possible, while,, general activity is low, to buildings and install new machinery; farm double the output of a given article in six out operations to contractors. New producers months without an advance in its price, while enter the business, converting facilities from in a period of active business a rise of 50 other lines of production, or installing new per cent from the same starting point may capacity, or both. Adjustments calculated to require the inducement of a substantially realize the maximum capacity of the mechan- higher price. It is a question of the compeical facilities that were in the industry at the tition for the factors of production that must outset (reconditioning of equipment, over- be mobilized to effect the increase in output.2 time work, extra shifts) are simultaneous The dependence of effective capacity on dewith adjustments calculated to bring in ad- mand conditions is equally evident. Let us ditional facilities (transfer of equipment suppose present supply conditions for pig from other uses, installation of new units, iron, and an unlimited demand at $100 a ton, additional farming out of work). The latter starting tomorrow morning and continuing adjustments are likely to proceed fast enough indefinitely. The output (effective capacity) in most cases to prevent a general three-shift a month from now will be one thing, six utilization either of the original facilities or months hence another, a year hence still anof those subsequently added. other. All three figures, however, will be different if the demand is unlimited at $50 Effective capacity.—Since the expansion a ton, and different again if the price is $25. of the production of an article in response There are in most industries adjustments to to increased demand is impeded by both meincrease output which are feasible only if the chanical and non-mechanical factors, should we not define effective capacity in terms broad enough to include both types? Instead of 2 It is not only the level of general activity that must be considered in appraising effective capacity for the manufacture of a making it the maximum output that would particular item ; the pattern or distribution of activity may be equally important, a point that will be discussed later. JULY 1940 641 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Problem of Manufacturing Capacity price is high. It is possible to pay labor for ments that will be made to expand output, a large amount of overtime, to run an uneco- and, finally, the output that will actually be nomical third shift, to put into service obso- forthcoming, we can say whether the effeclete high-cost capacity, or otherwise to expand tive capacity of the industry in question is production at a high marginal cost, but not too low. We can say, moreover, how long it unless the price permits. If it is too low, will be too low. Unless the problem is formusuch devices for increasing output will be lated in some such way, it is difficult to see used sparingly or not at all. Not only does how it can be solved. price determine the feasibility of bringing in high-cost production; it affects the rapidity Manufacturing Capacity in General and intensity of other adjustments to expand It frequently occurs that demand for a output. No estimate of effective capacity single article of manufacture expands several can be valid, therefore, that does not specify fold in a comparatively short time, and that the conditions of demand to which it applies. producers enlarge its output correspondingly, The practical problem—The most imporeither by mobilizing labor and mechanical tant practical question about the effective equipment theretofore idle or, lacking such capacity of the country to manufacture a idle resources, by diverting manpower and given product may be stated as follows. Does facilities from other lines less able to comit appear that the production of the article pete for them. A current example is the would fail to expand fast enough to keep pace manufacture of aircraft, which has quadwith the greatest increase in demand that is rupled in less than three years. For manulikely to occur, and keep pace, moreover, facturing as a whole, however, the case is without encountering such an increase in somewhat different. Output may rise very marginal costs as to result in economically injurious price advances?3 rapidly while there is idle manpower and mechanical capacity available, and while ac- By suggesting the test of the ability of protivity in non-manufacturing lines is also risduction to keep pace with demand, we do not ing, but the advance is likely to encounter mean to imply that it must always be rigidly resistance when further gains become posmatched with the current flow of orders. sible only through a net diversion of pro- This is neither necessary nor probable. The ductive resources from non-manufacturing flow of orders is often affected by speculaindustry. tive movements. What is important is that Human vs. mechanical limits to production. deliveries of unfinished goods to producers —It is not always recognized that the limited shall permit the purchasers to meet their supply of labor that can be attracted to manucurrent operating requirements, thus avoidfacturing against the competition of noning a constriction of production further manufacturing employments constitutes the down the line, and that the flow of finished only general "ceiling" to effective manufacgoods to distributors shall permit them to turing capacity. While mechanical bottlemeet consumer demand. There is ordinarily necks may interpose sporadic and temporary enough give-and-take in inventories along the barriers tp the expansion of output, they yield line to allow temporary disparities between to correction, given time, as do bottlenecks demand and output in particular stages of attributable to a scarcity of certain types of manufacture. The ability of output to keep skilled labor. They are limited to special up with demand must be interpreted for the situations. Serious general shortages of mepresent purpose with this qualification in chanical capacity in manufacturing are almind. most inconceivable, for reasons that will be If we can predict the rate at which demand discussed shortly. General labor shortages, for a particular article will rise and the exon the contrary, applying not only to manutent of its advance, the level and pattern of facturing but to other fields, are not only industrial activity at the time, the adjustpossible but have recurred at intervals throughout our industrial history. 3 Two observations are in order here. First, not all price advances on rising volume are attributable to higher costs for the The improbability of a serious general added margin of production. They often reflect merely a shift from a buyers' to a sellers' market, and so far as they are of this shortage of mechanical capacity arises from character they may prove nothing as to the adequacy of capacity. the fact that the expansion of production is Second, price advances or insufficient production may be attributable to supply conditions for agricultural and mineral raw mate- almost certain to be checked by a general rials, and hence may not indicate a shortage of effective manu- labor shortage before it develops more than facturing capacity, which is the subject of this article. 642 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Problem of Manufacturing Capacity sporadic and occasional shortages of equip- same token, the great majority of manufacment. The supply of manpower gives out turing industries will have excess mechanical first. Why should this be so? Two reasons capacity, so reckoned, when the maximum of may be suggested: the inflexibility of the manufacturing manpower is reached. labor supply relative to the supply of me- Effects of competitive duplication.—Even chanical facilities, and the normal surplus of if we excluded from consideration the possimechanical over human capacity. bility of additional shifts, we would probably The total "normal" labor force of the coun- still find for the majority of manufacturing try is growing currently at a little over one lines a mechanical capacity greater than per cent annually. While the rate of growth would be utilized under conditions of full of manufacturing manpower after a condi- employment.5 This is in part the effect of tion of full general employment is reached competition on the creation of facilities. The may be greater or less than the rate for the struggle for business among competitive labor force as a whole, it is likely to be slow manufacturing producers results typically in relative to the rate at which most mechanical a distribution of the market that differs from facilities, which are freely reproducible, can the distribution of mechanical capacity. This be enlarged.4 Even if mechanical capacity is not an occasional or temporary condition; were less readily expansible than it is, how- on the contrary it is chronic and perennial, ever, there would still be small likelihood of an inevitable by-product of competition itself. any severe general shortage because of the As a general rule, the total capacity of an large excess of mechanical equipment always industry is fully occupied only after a rapid existing in the majority of industries over the rise of demand which has not allowed time amount required to absorb the manpower for the expansion of facilities by strong proallocated to such equipment under conditions ducers, or in a period when a boom demand of maximum manufacturing employment. is considered for some reason transient, hence This "excess" of mechanical capacity arises not justifying such an expansion. Before principally from two circumstances: (1) the demand reaches a level which calls into use practice of one-shift operation, and (2) comall the available capacity, favored producers petitive duplication of facilities. have usually been turning away business. Effects of one-shift operation.—As pre- Their normal reaction when they are refusing viously pointed out, the vast majority of orders, and when the prospect is that they manufacturing industries operate normally will continue to do so, is to add to their capacon a one-shift basis. Why this should be so, ity. Additional capacity may also be introit is not necessary to discuss here. Basically, duced by new firms entering the business for it goes back to the disinclination of people to the first time. In ordinary circumstances work nights and their lower efficiency in such such additions occur when the total demand employment. In any event, a one-shift in- for the industry's product falls short of the dustry can by means of additional shifts level needed to utilize fully all the capacity double or nearly treble its output—if the available; hence the industry may go along necessary labor can be mobilized. We have for years, even for decades, without once thus in multiple-shifting a safety valve reaching a complete use of its mechanical against shortages of capacity on the mechanifacilities. cal side. Granted that this expedient is un- The full utilization of the mechanical desirable for long-continued use, it is nevertheless a potent safeguard against temporary equipment of a competitive industry must be emergencies, pending a sufficient enlargement regarded as a temporary and self-limiting of the physical facilities to permit a restora- condition. It will ordinarily set in motion tion of a one-shift schedule. If we reckon responses calculated to restore a margin of the mechanical capacity of one-shift industries on the basis of three-shift or even of 5 A study by The Brookings Institution concludes that in 1929, a year of exceptionally full employment, the mechanical facilities two-shift operations, we will find that the of manufacturing were used on the average at 83 per cent of their capacity. In other words, the average unused margin was number of workers required to man fully the 20 per cent of production. America's Capacity to Produce, p. existing manufacturing plant is always vastly 303. These estimates of mechanical capacity exclude the possibility of working overtime, or of putting on extra shifts. Morein excess of the maximum available. By the over, plants standing idle throughout the year are not counted, usual seasonal patterns of operation are fully accepted as a limitation, and no allowance is made for the possibility of aug- * References to "full employment" in this article must be inter- menting capacity by the conversion of facilities from mechanically preted by practical standards, since we have never reached a similar lines of production, or by the farming out of operations condition of literally full employment even in boom times. to contractors. JULY 1940 643 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Problem of Manufacturing Capacity unused capacity, the attainment of which rep- range up to 170 in the index).6 It is clear resents a return to "normalcy." The most that any approach to this level will carry a fundamental barrier to the full use of plant large number of manufacturing industries is just this persistent tendency of capacity far beyond their previous highs into territory to keep a jump ahead of production. for which they have not been prepared by The present situation.—In the present situ- recent experience. To penetrate new terriation, our problem is not the limitation of tory in production is more difficult, and rethe expansion of manufacturing production quires more adjustments, than to reoccupy an by the exhaustion of the available labor sup- area previously traversed. ply, though we may sometime reach that Because we have the manpower at hand for condition; it is rather limitations of less gen- an output of say 160 or 170 in the index of eral incidence that may impede and distort manufacturing production, but have never production on the way up to a full-employ- topped 130, the workers that would have to be ment level. We refer to shortages of par- added to produce the margin above 130 are for ticular types of mechanical equipment, or of the most part unskilled. They will have to be particular labor skills, occasioned by the trained, to some extent at least, before they expansion of output in the affected industries can be productive. This takes time. Because at a more rapid rate than current adjust- the existing mechanical equipment in manuments can accommodate. facturing has never been adjusted to the high Local shortages of this character are rela- level of activity made possible by our present tively rare during periods of low general manpower, much expansion will be necessary activity, though they may be acute so far as before it can be attained. This again takes they go. They occur in the case of new prod- time. If we are to approach this level withucts (the current shortage of nylon capacity out precipitating serious economic maladjustis an example), or in case of an abrupt in- ments from shortages of effective capacity, crease in demand for established goods (the the approach must be sufficiently gradual to present deficiency in aircraft output, for in- permit a timely correction of these shortages stance), but for the overwhelming majority as we proceed. An immediate realization of f commodities demand moves in a range our production potential is quite out of the o within which output can respond quickly and question. satisfactorily. The danger of bottlenecks is The frequency of bottlenecks and deficiengreater, however, when general activity is cies in the flow of production depends not high, especially when it is moving upward only on the general level and movement of from a high level. When this is the case, manufacturing activity but also on its pattern there are sure to be many products for which or distribution. This in turn depends on the demand is penetrating at a rapid rate into distribution of demand. If we were able to new territory where it is difficult for produc- specify a pattern of demand calculated to tion to keep pace. An upward movement of concentrate the increase of output in those general activity from a level already high lines where it is most readily expansible, we is bilateral in its effects: it multiplies the might find, for example, that we could quite instances in which it is necessary for the out- comfortably attain in six months a certain put of particular products to expand rapidly level in the aggregate of activity as measured into difficult territory, and it increases the by the Board's index of manufacturing proobstacles to such expansion by reducing the duction, while at the same time it would be availability of the human and mechanical easy to specify a distribution of demand that resources that must be mobilized to effect it. would preclude the attainment of that level It must be recognized that the rate at which within the period because of prohibitive we can expand manufacturing production shortages of effective capacity in certain into high ground, without encountering seri- areas. ous shortages of capacity on the way, has The present defense program may be cited been greatly affected by the depression. This in this connection as a factor tending unis attributable to the fact that the highest avoidably to distort demand from its normal level of activity heretofore reached (129 in pattern and to create disparities between dethe Board's adjusted index, in December 6 The principal difficulty in making an estimate is the uncer- 1939) is far below the level made possible by tainty as to the proportion of the usable labor surplus that would our present labor force (various estimates be available to manufacturing on a rise in general economic activity sufficient to absorb the surplus. 644 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Problem of Manufacturing Capacity mand and the existing capacity to produce. with sufficient rapidity, we would then have The program has already developed acute capacity troubles in many places and in a shortages of specific types of armament-mak- wide variety of industries, long before we had ing capacity, attributable both to mechanical reached the level of production made possible deficiency and to a scarcity of certain kinds by a full employment of our labor force. of skilled labor. Some of these shortages As stated at the outset, it is not the purwill persist for many months. Moreover, pose here to attempt to identify specifically difficulties are not limited entirely to indus- the industries and products most likely to tries engaged in the fabrication of military give trouble. A few broad observations may equipment, but extend to certain lines like be in order, however. Apart from difficulties machine tools that tnust be relied on to supply in the production of specifically military mathe specialized equipment needed to make this terials, where many shortages of capacity are fabrication possible. inevitable regardless of the movement of To what extent the defense program will manufacturing output as a whole, and apart be instrumental in developing shortages of from undercapacity in the production of new capacity outside these special situations will commodities, also more or less independent depend not only on the extent of the program of general activity, we may expect difficulties —a matter not yet fully determined—but also to be concentrated in certain classes of inon the rapidity with which it is executed. dustries.7 While the additional military production now The most general class consists of induscontemplated will represent only a small frac- tries producing goods for which demand rises tion of our total industrial output, it promises rapidly on an advance in general activity. to be relatively important in certain sectors There are innumerable manufactured prodof manufacturing, metal-working for in- ucts for which the demand under conditions stance. An aggressive prosecution of the of full prosperity would be so little above the program will set up an intensified competi- current level as to create no problem whatsotion for the skilled labor and specialized me- ever from the standpoint of capacity. Most chanical facilities used to produce the goods food products, for example, are in this caterequired, and is likely to result in at least a gory. There is a large intermediate class of temporary reduction of the effective capacity commodities subject to wider but still modof some industries which are not directly con- erate cyclical fluctuations in demand (clothcerned with defense procurement, but which ing and housefurnishings may be cited) employ the same types of labor and machin- which in general offer little cause for worry. ery. This impairment of effective capacity As a broad proposition, capacity difficulties, may or may not be of importance JX current other than those directly attributable to mililevels of activity, but will be felt if these in- tary requirements or to the introduction of dustries should have occasion to increase new commodities, are likely to be centered in their output rapidly while the defense pro- industries subject to violent cyclical swings gram is an expanding phase. A sudden and in demand. concentrated increase in demand such as this Since the majority of these industries opprogram involves can have widespread reper- erate normally on a one-shift basis, they have cussions even at a time when there is no a wide margin of safety on the mechanical general shortage of labor or mechanical facili- side. Although a rapid advance of general ties. activity into new ground would make even If the defense program is instrumental in this margin inadequate in many cases, it is bringing out shortages of capacity outside probable that lack of mechanical capacity the industries directly engaged in military would be infrequent compared with shortproduction and the industries substantially ages of skilled labor. The process of adding affected by the competition of this production the extra shifts needed for a full utilization for special labor skills and machinery, it will of such capacity would commonly develop be because of its indirect effect in stimulating shortages of specific labor skills before the economic activity elsewhere, and in raising the level of industrial output as a whole. If 7 It may be appropriate to mention in passing a third class of difficulties relatively independent of general activity, namely, our own armament expenditure, coupled, say, those attributable to the cutting off or curtailment of foreign with heavy exports of military and other ma- materials as a result of war. Such difficulties have already developed in certain lines, paper for instance, and more may be terials, should develop a boom in this country forthcoming. As they are essentially unpredictable they will not be further discussed. JULY 1940 645 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Problem of Manufacturing Capacity mechanical limits were reached. This would made possible by the size of our labor force; not be true, of course, of industries depend- qualitative deficiencies make this potential ent only on unskilled or slightly skilled labor. itself lower than it should be in the existing Of the industries subject to wide cyclical state of technology. The restriction of proswings in demand, those which customarily duction through the use of obsolete equipoperate on a continuous basis seem more ment is not only more widespread at all times liable to mechanical shortages. The capacity than the restriction due to purely quantitaof these industries is already normally geared tive shortages; unlike the latter, it is present to three-shift operation. In many of them, in some measure regardless of the level of moreover, the physical plant is so highly spe- activity. This type of undercapacity, if such cialized that it cannot be augmented by con- it may be called, is perennially present. version from other lines of production, and To summarize: We face acute shortages so heavy that it cannot be rapidly expanded of manufacturing capacity both human and by the addition of new units. Steel capacity mechanical, in the production of certain milimay be cited as an example. tary materials and in some closely related It should not be inferred from the fact that lines. Difficulties may develop in some other mechanical shortages are likely to occur in industries which are affected by the compeonly a small minority of industries numeri- tition of military production for special types cally that they would be unimportant from of labor and machinery. The curtailment or the standpoint of the economy in general. A cutting off of imported materials as a result real squeeze in a basic line like steel could of the war has already created trouble in bedevil a vast area of production. Whether some quarters and may be further effective. mechanical undercapacity would be more Apart from these special situations, the freserious on the whole than skilled labor short- quency and gravity of shortages of capacity ages in the event of a rapid advance of gen- will depend largely on the rate at which eral activity it is difficult to say. The an- manufacturing output as a whole climbs into swer is not inferable simply from the greater new territory. The most important danger frequency of non-mechanical difficulties. zones on the mechanical side, exclusive of One further observation may be made on those in the special situations just enumerthe subject of mechanical capacity. The po- ated, appear to be in continuous-process intential quantitative inadequacy of our present dustries subject to side cyclical fluctuations facilities is less general than existing quali- in demand. On the human side, they are in tative deficiency. The low average rate of industries which are subject to fluctuating additions and replacements during the past demand and which use highly specialized decade has left our manufacturing plant in labor. I ~nch will depend on the energy and a state of unusual obsolescence.8 Quantita- foresight ,/ith which deficiencies are pretive shortages of mechanical capacity delay vented or corrected. It remains true in any the attainment of the production potential event that the surest protection is a rate of expansion in manufacturing activity gradual 8 This conclusion is supported by the results of the quinquennial survey of metal-working equipment conducted by the American enough to permit a satisfactory adjustment Machinist. The percentages of the existing equipment over 10 of capacity difficulties as we proceed. years of age are as follows : 1925, 44 ; 1930, 48 ; 1935, 65 ; 1940, 70. 646 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Ttont a ^.ea al Standpoint Administrative interpretations of banking laws, new regulations issued by the Board of Governors and other similar material of interest to bankers. Stock Deposited With Broker For Him to Lend lation to be outstanding, the stock could be withdrawn at any time by depositing in the The Board recently considered a case in account the then maximum loan value of which a customer wished to deliver certain the shares withdrawn, or enough to reduce the registered nonexempted stocks to a broker adjusted debit balance of the account to the with the understanding that the broker would maximum loan value of the securities in offer to lend this stock in the "loan crowd" the account, whichever deposit would be on a national securities exchange. Various smaller. The regulation does not permit any questions were presented as to how such a less restrictive arrangement if the stocktransaction in a number of different circumholder wishes .to obtain funds for the general stances must be handled under Regulation T, purpose of purchasing or carrying or trading including the question of what restrictions the regulation imposes on the customer's later in securities. withdrawal of the shares. Funds not for purchasing or carrying securities.—Section 4(f) (8) and its related Funds left tvith broker.—The inquiry indiprovision, section 7(c), provide that: cated that the customer had no intent to use the stock as collateral for brokerage trans- "4 (f) Special miscellaneous account.—In a special actions. In view of this fact the Board stated miscellaneous account, a creditor may— "(8) Extend and maintain credit to or for any at the outset that the regulation would permit customer without collateral or on- any collateral the broker to receive the securities in a spe- whatever for any purpose other than purchasing or cial miscellaneous account under the pro- carrying or trading in securities." visions of section 4(f) (6) if the customer * * * * ** desired merely to deposit the stock with the "7(c) Declaration as to purpose of loan.—Every creditor for lending purposes and also was extension of credit on a registered security (other willing to leave with the broker the funds re- than an exempted security) shall be deemed to be for the purpose of purchasing or carrying or trading in ceived by the broker on lending the stock. securities, unless the customer shall file with the Such an arrangement in which the stock- creditor a written declaration signed by the customer holder received no funds as a result of de- which shall state the use to be made of such credit positing the stock with the brokers would and which shall state specifically that such credit is neither for the purpose of purchasing or carrying clearly be authorized under section 4(f) (6), or trading in securities nor for the purpose of evading which provides that in a special miscellaneous or circumventing the provisions of this regulation. account a creditor may " (subject to any other In connection with any extension of credit, a creditor applicable provisions of law) receive from or may rely upon such a written declaration unless he knows the statement to be false or has information for any customer, and pay out or deliver to which would put a prudent man upon inquiry and if or for any customer, any money or securi- investigated with reasonable diligence would lead to ties." If such procedure were followed, the the discovery of the falsity of the statement." regulation would permit the stock to be freely Under these provisions the broker could withdrawn at any time. receive the stock in a special miscellaneous Funds withdrawn to purchase or carry se- account and could advance to the customer curities.—If the stockholder wishes to receive all or any part of the funds the broker refunds from the broker as a result of deposit- ceived in lending the stock, but in such event ing the shares, further questions arise. He the advance to the customer could not be for could receive the standard maximum loan the purpose of purchasing or carrying or value of the stock, now 60 per cent of current trading in securities, and since the securities market value, in a general account. Assum- are registered and nonexempted the broker ing no other transactions in the account which would have to obtain an appropriate declaracause any demand for margin under the regu- tion in accordance with section 7 (c). JULY 1940 647 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

From a Legal Standpoint Purpose of loan.—The question whether a Premium on lending.—With respect to the particular loan is for the purpose of purchas- broker's payment to the customer of a sum ing or carrying or trading in securities and equal to a premium which the broker received whether the broker is justified in accepting a on the lending of the stock, it was assumed declaration under section 7 (c) in a particular that the customer was not to return such case is necessarily a question of fact that must amount when he receives his stock back from turn on all the relevant circumstances in- the broker. If this is the case, it may be volved in the case. stated as a general proposition that such a It appeared that although the customer payment by the broker would not be limited might as a matter of policy prefer not to leave by any provision of the regulation. So far as the funds with the broker, he nevertheless concerns the procedure or mechanics of the might not wish to use the funds for any pur- matter, it may be noted that if the premium pose except to withdraw them and put them is credited to a general account and is not in safekeeping pending the return of the withdrawn on the same day it may, as a part stock. If such is the case and the customer of the account, become subject to withdrawal keeps the funds in a safe deposit box, special restrictions at a later date; but any difficulty deposit, or other similar form until the return on this point could be avoided by transferring of the shares, the broker would clearly be the sum on the same day from the general acjustified in accepting a declaration under sec- count to a special miscellaneous account purtion 7(c). suant to section 4(f) (6) of the regulation. If, on the other hand, the customer does not Cash dividend on stock.—It was assumed treat the funds in this manner and also pur- that any amounts paid by the broker to the chases or carries or trades in securities near customer in connection with a cash dividend the time of the loan, it would seem that as a on the stock also would not be repaid by the general proposition the broker should assume customer to the broker. If such is the case, the loan to be for such purpose. While it is their status would be the same as that of payof course conceivable that in some such cir- ments connected with a premium on the lendcumstances the loan might not be for the pur- ing of the stock, with the minor exception pose, there is a very strong likelihood that it that in case the dividends had been credited is, and it should be carefully scrutinized as to a general account section 6(g) would perprobably being unable to qualify under sec- mit the withdrawal of such dividends at any tions 4(f) (8) and 7(c). time within 35 days thereafter if the credit- Not a cash transaction.—The inquiry sug- ing had not served in the meantime to permit gested the possibility that the loan of the stock any transaction which could not otherwise might be regarded as a sale and the return of have been effected in the account. the stock as a purchase by the customer, so Marking to market.—A different situation that the entire transaction might be handled would, however, be presented by any payby the broker in a special cash account sub- ments which the broker might make to the ject to the provisions of section 4 (c) of Regu- customer as a result of the stock being lation T. In the opinion of the Board, how- "marked to the market/' since it may be asever, such a use of a special cash account is sumed that the customer would repay such not permitted by the regulation. funds to the broker when his stock is returned Other payments in connection with stock to him by the broker. Accordingly, such payloaned.—In addition to the general questions ments to the customer would be subject to the discussed above, several questions were raised same requirements as those indicated for payas to the application of the regulation to cer- ments in connection with an original deposit tain other payments in connection with the of the stock. stock loaned. Such questions related spe- Stock dividends on stock.—With respect to cifically to payments by the broker to the cus- stock dividends, the result would depend on tomer in connection with premiums received whether the broker delivers to the customer on the lending of stock, in connection with the actual stock dividend, or cash based on the payment of a cash dividend on the stock, the stock dividend. If stock is delivered, prein connection with the stock being "marked sumably the customer would not return it to to the market" in case it increases in value, the broker. If this is the case, it would have or in connection with the payment of a stock the same status as that discussed above in dividend on the stock. These matters are dis- connection with a premium on the lending of cussed below. the shares, since section 6(g) allowing 35 648 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

From a Legal Standpoint days for the payment of cash dividends does Treasury Department, Office of the Secretary, not apply to stock dividends. However, if the June 17, 1940 broker advances cash to the customer on the AMENDMENTS TO REGULATIONS * basis of the stock which was received as a dividend and the customer is later to repay The Regulations of April 10, 1940, as amended (Sections 130.1 to 130.6), are further amended so as such amount and receive the stock, the reto extend all the provisions thereof to, and with requirements stated above with respect to the spect to, property in which France or any national original deposit of stock would apply. thereof has at any time on or since June 17, 1940, had any interest of any nature whatsoever, direct or indirect; except that reports on Form TFR-100 Executive Order and Regulations on Transfers of with respect to all property situated in the United French Property States on June 17, 1940, in which France or any national thereof has at any time on or since June 17, The Executive Order of April 10, 1940, as 1940, had any interest of any nature whatsoever, amended May 10, 1940, and the Treasury direct or indirect, shall be filed by July 17, 1940. Regulations issued thereunder on the same H. MORGENTHAU, JR., Secretary of the Treasury. days providing that transfers of credit, for- Approved: June 17, 1940. eign exchange transactions, the export or ear- FRANKLIN D. ROOSEVELT. marking of coin, bullion, or currency, or other similar operations, by persons or institutions General Rulings and General Licenses Issued by in the United States which involve property Secretary of the Treasury The following General Rulings and General of Norway, Denmark, Belgium, Luxembourg, Licenses have been issued by the Secretary of or the Netherlands, or any national thereof, the Treasury under authority of the Execushall be subject to license by the Secretary of tive Order of April 10, 1940, as amended, and the Treasury, were amended on June 17,1940, Regulations issued pursuant thereto, relating to transactions in foreign exchange, etc. The so as to include property of France or any Executive Order and Regulations, together national thereof. with earlier General Rulings and General The text of the Executive Order and accom- Licenses, were published on pages 509-516 of panying Regulations of April 10 and amend- the Federal Reserve BULLETIN for June 1940. ments thereto of May 10 are quoted in full on Treasury Department, Office of the Secretary, pages 390-393 of the Federal Reserve BUL- June 3, 1940 LETIN for May 1940 and on pages 509-513 of General Ruling No. 3, Under Executive Order No. the Federal Reserve BULLETIN for June 1940. 8389, April 10, 194-0, As Amended, and Regulations Issued Pursuant Thereto, Relating to Transactions The texts of the June 17 amendments are as in Foreign Exchange, Etc. follows: The attention of banks, brokers, transfer agents, registrars and all other persons and banking institu- EXECUTIVE ORDER NO. 8446 tions in the United States is invited to the fact that Amendment of Executive Order No. 8389 of April 10, the Treasury Department construes Executive Order No. 8389, April 10, 1940, as amended, and the Regu- 19 UO, as Amended lations issued pursuant thereto as prohibiting the By virtue of the authority vested in me by section acquisition, transfer, disposition, transportation, im- 5(b) of the Act of October 6, 1917 (40 Stat. 411), as portation, exportation, or withdrawal of, or the enamended, and by virtue of all other authority vested dorsement or guarantee of signatures on, or otherwise dealing in, or with respect to, any security (or eviin me, I, FRANKLIN D. ROOSEVELT, PRESIDENT of the UNITED STATES OF AMERICA, do hereby amend Execu- dence thereof) registered or inscribed in the name of tive Order No. 8389 of April 10, 1940, as amended, Norway, Denmark, the Netherlands, Belgium or Luxembourg or any national thereof, except pursuant to so as to extend all the provisions thereof to, and with a specific license, irrespective of the fact that at any respect to, property in which France or any national time (either prior to, on, or subsequent to April 10, thereof has at any time on or since June 17, 1940, 1940) the registered or inscribed owner thereof may had any interest of any nature whatsoever, direct or indirect; except that, in defining1 "France" and have, or appears to have, assigned, transferred or otherwise disposed of any such security. Applica- "national" of France the date "June 17, 1940" shall tions for licenses should be made in the manner probe substituted for the dates appearing in the definitions of countries and nationals thereof. * Sections 130.1 to 130.6: Sec. 5(b), 40 Stat. 415 and 966; Sec. 2, 48 Stat. 1; Public Resolution No. 69, 76th Congress; FRANKLIN D. ROOSEVELT. 12 U. S. C. 95a; Ex. Order 6560, Jan. 15, 1934; Ex. Order 8389, THE WHITE HOUSE, April 10, 1940; Ex. Order 8405, May 10, 1940; Ex. Order 8446, June 17, 19 UO. June 17, 1940. JULY 1940 649 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

From a Legal Standpoint vided in the Regulations issued under the Executive Treasury Department, Washington Order of April 10, 1940, as amended. June 7, 1940 D. W. BELL, Acting Secretary of the Treasury. The Secretary of the Treasury today announced that, until further notice, securities coming into the Treasury Department, Office of the Secretary, United States from Great Britain, France, Canada, Newfoundland or Bermuda need not be forwarded June 3, 1940 to a Federal Reserve bank for examination under General Ruling No. 4, Under Executive Order No. General Ruling No. 5, issued on June 6, 1940, relating 8389, April 10,1940, As Amended, and Regulations to examination of securities brought into the United Issued Pursuant Thereto, Relating to Transactions States. in Foreign Exchange, Etc. Treasury Department, Washington, Except as otherwise specifically indicated, all defi- June 17, 1940 nitions appearing in Executive Order No. 8389, of Supplementing his statement of June 7, 1940, the April 10, 1940, as amended, and the Regulations is- Secretary of the Treasury announced today that, sued thereunder, shall apply to the terms employed until further notice, securities coming into the United in all rulings, licenses, instructions, etc., issued pur- States on or after June 17 from France must be suant to such Executive Order and Regulations. forwarded to a Federal Reserve bank for examina- D. W. BELL, tion under General Ruling No. 5, issued on June 6, Acting Secretary of the Treasury. 1940, relating to examination of securities brought into the United States. Treasury Department, Office of the Secretary, June 6, 1940 Treasury Department, Office of the Secretary, General Ruling No. 5, Under Section 5(b) of the Act June 17, 1940 of October 6, 1917 (40 Stat. 411), As Amended, Amendment to General Ruling No. 3 Under Executive Executive Order No. 8389 of April 10, 1940, As Order No. 8389, April 10, 1940, cus Amended, and Amended, and Regulations Issued Pursuant Regulations Issued Pursuant Thereto, Relating to Thereto, and Under All Other Authority of Law. Transactions in Foreign Exchange, Etc. The sending, mailing, importing or otherwise bring- General Ruling No. 3 is hereby amended to read ing into the United States, on and after June 7,1940, as follows: from any foreign country, of any securities or evidences thereof or the receiving or holding in the "The attention of banks, brokers, transfer agents, United States of any securities or evidences thereof registrars and all other persons and banking instituso brought into the United States is prohibited, ex- tions in the United States is invited to the fact that cept on condition that such securities and evidences the Treasury Department construes Executive Order thereof be immediately delivered for examination to No. 8389, April 10, 1940, as amended, and the Regua Federal Reserve bank as fiscal agent of the United lations issued pursuant thereto as prohibiting the States. Such Federal Reserve bank, as fiscal agent acquisition, transfer, disposition, transportation, imof the United States, shall hold such securities and portation, exportation, or withdrawal of, or the enall evidences thereof until the Treasury Department dorsement or guarantee of signatures on, or otheris satisfied as to whether or not any of the countries wise dealing in, or with respect to, any security (or named in Executive Order No. 8389, as amended, or evidence thereof) registered or inscribed in the name any national thereof has at any time on or since the of any country designated in Executive Order No. dates specified in such Order, as amended, had any 8389, April 10, 1940, as amended, or any national interest of any nature whatsoever, direct or indirect, thereof, except pursuant to a specific license, irrein such securities or evidences thereof. Proof as to spective of the fact that at any time (either prior to, whether or not any of such countries or any national on, or subsequent to April 10, 1940) the registered thereof has had any such interest may be submitted or inscribed owner thereof may have, or appears to to the Federal Reserve bank holding such securities have, assigned, transferred or otherwise disposed of or evidences thereof. any such security. Applications for licenses should Customs officers and postal employees are in- be made in the manner provided in the Regulations structed to deliver any such securities or evidences issued under Executive Order No. 8389, April 10, thereof to a Federal Reserve bank. Any articles 1940, as amended." D w arriving from any foreign country on or after June Acting Secretary of the Treasury. 7, 1940, which in the opinion of customs officers or postal employees contain such securities or evidences Treasury Department, Office of Secretary, thereof, shall be subjected to customs inspection in accordance with the Customs Regulations of 1937. If May 16, 1940. any article opened by an addressee or his agent in the Revocation of General License No. 8 Under Execupresence or under the supervision of a customs officer tive Order No. 8389, April 10, 1940, as Amended, or postal employee is found to contain such securities and Regulations Issued Pursuant Thereto, Relator evidences thereof, such securities or evidences ing to Transactions in Foreign Exchange, Etc.* thereof shall be surrendered forthwith to such customs officer or postal employee for delivery to a Fed- General license No. 8, authorizing banking institueral Reserve bank, as above provided. tions within the United States to make all payments, H. MORGENTHAU, JR., •Sec. 5(b), 40 Stat. 415 and 966; Sec. 2, 48 Stat. 1; Public Secretary of the Treasury. Resolution No. 69, 76th Congress; 12 U.S.C. 95a; Ex. Order 6560, Jan. 15, 1934; Ex. Order 8389, April 10, 1940; Ex. Order 8405, Approved: June 6, 1940. May 10, 1940; Regulations, April 10, 1940, as amended, May 10, 1940. FRANKLIN D. ROOSEVELT. 650 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Front a Legal Standpoint transfers and withdrawals from accounts in the office in Bordeaux and the branches in London and name of any of the following: Javasche Bank, Neder- the Belgian Congo of the Banque du Congo Beige. landsche Handel-Maatschappij, Nederlandsch Indi- "Banking institutions within the United States sche Handelsbank and Nederlandsch-Indische Es- making such payments, transfers, or withdrawals compto Maatschappij, is hereby revoked. shall file promptly with the appropriate Federal D. W. BELL, Reserve bank weekly reports showing the details of Acting Secretary of the Treasury. the transactions during such period." D. W. BELL, Treasury Department, Office of Secretary, Acting Secretary of the Treasury. May 17, 1940. Treasury Department, Office of Secretary, Amendment to General License No. 3 Under Execu- May 31, 1940. tive Order No. 8389, April 10, 19%0, as Amended, and Regulations Issued Pursuant Thereto, Relat- General License No. 13 Under Executive Order No. ing to Transactions in Foreign Exchange, Etc.* 8389, April 10, 1940, as Amended, and Regulations General License No. 3 is hereby amended to read Issued Pursuant Thereto, Relating to Transactions as follows: in Foreign Exchange, Etc.* "A general license is hereby granted authorizing A general license is hereby granted authorizing banking institutions within the United States: banking institutions within the United States to (a) to make payments from accounts in which make all payments, transfers and withdrawals from Norway or Denmark or a national thereof has a accounts in the name of any of the following: the property interest within the meaning of the Execu- head offices in Java of the Javasche Bank, Nedertive Order of April 10, 1940, as amended, and the landsche Handel Maatschappij, Nederlandsch Indi- Regulations issued thereunder, of checks and drafts sche Handelsbank and Nederlandsch Indische Esdrawn or issued prior to April 8, 1940, and to accept compto Maatschappij, the branch offices in Kobe, and pay and debit to such accounts drafts drawn Shanghai, Amoy, Hongkong, Manila, Singapore, Bomprior to April 8, 1940, under letters of credit, and bay and Calcutta of the Nederlandsch Indische (b) to make payments from accounts in which the Handelsbank and the branch offices in Kobe, Djeddah Netherlands, Belgium or Luxembourg or a national and Shanghai of the Nederlandsche Handel Maatthereof has a property interest within the meaning schappij. of the Executive Order of April 10,1940, as amended, Banking institutions within the United States and the Regulations issued thereunder, of checks making such payments, transfers, or withdrawals and drafts drawn or issued prior to May 10, 1940, shall file promptly with the appropriate Federal Reand to accept and pay and debit to such accounts serve bank weekly reports showing the details of the drafts drawn prior to May 10, 1940, under letters of transactions during such period. credit; D. W. BELL, "Provided, that each banking institution making, Acting Secretary of the Treasury. after May 17, 1940, any payment or debit authorized by this general license shall file promptly with the Treasury Department, Office of Secretary, appropriate Federal Reserve bank weekly reports snowing the details of such transactions." June 3, 1940. D. W. BELL, Amendment to General License No. 4 Under Execu- Acting Secretary of the Treasury. tive Order No. 8389, April 10, 1940, as Amended, and Regulations Isstced Pursuant Thereto, Relat- Treasury Department, Office of Secretary, ing to Transactions in Foreign Exchange, Etc.* May 20, 1940. General license No. 4 is hereby amended to read as follows: Amendment to General License No. 10 Under Executive Order No. 8389, April 10, 194-0, as Amended, "A general license is hereby granted authorizing and Regulations Issued Pursuant Thereto, Relat- the bona fide sale of securities on a national securiing to Transactions in Foreign Exchange, Etc.* ties exchange by banking institutions within the United States for the account, and pursuant to the General License No. 10 is hereby amended to read authorization, of nationals of Norway, Denmark, the as follows: Netherlands, Belgium or Luxembourg, and the mak- "A general license is hereby granted authorizing ing and receipt of payments, transfers of credit, and banking institutions within the United States to transfers of such securities which are necessary make all payments, transfers and withdrawals from incidents of any such sale, provided that: accounts in the name of the Banque Beige pour (a) the proceeds of the sale are credited to an l'Etranger, Overseas, Ltd., including its New York account in the name of the national for whose agency, the Banque Beige pour l'Etranger in Paris, account the sale was made and in the banking instiincluding its Marseilles agency, the Banque Beige tution within the United States which held the securiet Internationale en Egypte, the branches and ties for such national; and agencies of the Banque Italo-Belge in London, Paris, Le Havre, Buenos Aires, Montevideo, Rio de Janeiro, * Sec. 5(b), 40 Stat. 415 and 966; See. 2, 48 Stat. 1; Public Sao Paulo, Santos and Campinas, the branches of the Resolution No. 69, 76th Congress; 12 U.S.C. 95a; Ex. Order 6560, Banque Beige pour l'Etranger—Extreme Orient in Jan. 15, 1934; Ex. Order 8389, April 10, 1940; Ex. Order 8405, May 10, 1940; Regulations, April 10, 1940, as amended, May Shanghai, Tientsin, Hongkong and Hankow, and the 10, 1940. JULY 1940 651 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

From a Legal Standpoint (b) this general license shall not be deemed to (2) To issue, confirm or advise export letters of authorize (1) the sale of any security registered or credit in favor of exporters within the United States inscribed in the name of Norway, Denmark, the to finance exports therefrom to the Netherlands East Netherlands, Belgium or Luxembourg, or any na- Indies; to accept and pay drafts drawn by such extional thereof, irrespective of the fact that at any- porters under such letters of credit; and to reimburse time (whether prior to, on, or subsequent to April such banking institutions for payments under such 10, 1940) the registered or inscribed owner thereof letters of credit. may have, or appears to have, assigned, transferred The issuance and transfer of documents of title in or otherwise disposed of the security; or (2) the sale connection with such import or export letters of credit of any securities not physically situated in the in accordance with the instructions of the persons United States on June 1, 1940. entitled to issue such instructions are also hereby authorized. "Each banking institution making any sales herein Banking institutions issuing, confirming or advisauthorized is required to file promptly with the aping letters of credit or accepting or paying drafts propriate Federal Reserve bank weekly reports showdrawn, and all persons (including banking instituing the details of the transactions, including a detions) issuing or transferring documents of title purscription of the securities sold, the dates of sales, suant to this general license, shall file promptly with the persons for whose account the sales were made, the appropriate Federal Reserve bank weekly reports and the prices obtained. showing the details of the transactions during such "This amendment of General License No. 4 shall period. not be deemed to prevent the completion on or prior For the purpose of this general license the Netherto June 6, 1940, of purchases and sales, which were lands East Indies shall be deemed to include the folmade prior to June 4, 1940, pursuant to General lowing: Java and Madura, Sumatra, Riouw-Lingga License No. 4, of securities other than securities archipelago, Banka, Billiton, Celebes, Borneo (West, registered or inscribed in the name of Norway, Den- South and East Divisions), Timor archipelago, Bali mark, the Netherlands, Belgium or Luxembourg, or and Lombok, Lesser Sunda Islands and Dutch New any national thereof." Guinea. D. W. BELL, D. W. BELL, Acting Secretary of the Treasury. Acting Secretary of the Treasury. Treasury Department, Office of the Secretary, Treasury Department, Office of the Secretary, June 4, 1940. June 13, 1940 General License No. H Under Executive Order No. Revocation of General License No. 3, as Amended, 8389, April 10, 1940, as Amended, and Regulations Under Executive Order No. 8389, April 10, 19J+0, Issued Pursuant Thereto, Relating to Transactions as Amended, and Regulations Issued Pursuant in Foreign Exchange, Etc.* Thereto, Relating to Transactions in Foreign Exchange, Etc.* A general license is hereby granted authorizing banking institutions within the United States to General License No. 3, as amended, authorizing make all payments, transfers and withdrawals from banking1 institutions within the United States: accounts in the name of any of the following: Curacaosche Bank, Willemstad, Curacao; Maduro & (a) to make payments from accounts in which CuriePs Bank, Willemstad, Curacao; Edwards Norway or Denmark or a national thereof Henriquez & Co., Willemstad, Curacao; and Aruba has a property interest within the meaning Bank, Oranjestad, Aruba. of the Executive Order of April 10, 1940, as Banking institutions within the United States mak- amended, and the Regulations issued thereing such payments, transfers, or withdrawals shall under, of checks and drafts drawn or issued file promptly with the appropriate Federal Reserve prior to April 8,1940, and to accept and pay bank weekly reports showing the details of the trans- and debit to such accounts drafts drawn actions during such period. prior to April 8,1940, under letters of credit, and D. W. BELL, Acting Secretary of the Treasury. (b) to make payments from accounts in which the Netherlands, Belgium or Luxembourg or a national thereof has a property interest Treasury Department, Office of the Secretary, within the meaning of the Executive Order June 4, 1940. of April 10,1940, as amended, and the Regulations issued thereunder, of checks and General License No. 15. Under Executive Order No. drafts drawn or issued prior to May 10, 8389, April 10, 19%0, as Amended, and Regulations 1940, and to accept and pay and debit to Issued Pursuant Thereto, Relating to Transactions such accounts drafts drawn prior to May 10, in Foreign Exchange, Etc.* 1940, under letters of credit; is hereby revoked. A general license is hereby granted authorizing banking institutions within the United States: D. W. BELL, (1) To issue, confirm or advise import letters of Acting Secretary of the Treasury. credit in favor of exporters in the Netherlands East * Sec. 5(b), 40 Stat. 415 and 966; Sec. 2, 48 Stat. 1; Public Indies to finance imports therefrom into the United Resolution No. 69, 76th Congress ; 12 U. S. C. 95a; Ex. Order States, and to accept and pay drafts drawn by such 6560, Jan. 15, 1934; Ex. Order 8389, April 10, 1940; Ex. Order 8405, May 10, 1940; Regulations, April 10, 1940, as amended, exporters under such letters of credit; and May 10, 1940. 652 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, bank weekly reports showing the details of the trans- June 17, 1940 actions during such period. D. W. BELL, General License No. 16, Under Executive Order No. Acting Secretary of the Treasury. 8389, April 10, 19 UO, as Amended, and Regulations Issued Pursuant Thereto, Relating to Transactions Treasury Department, Office of the Secretary, in Foreign Exchange, Etc.* June 18, 1940 General Licenses Nos. 1, 2, 4, 5, 9, 11 and 12, as General License No. 19 Under Executive Order No. amended, issued under Executive Order No. 8389 of 8389, April 10, 19UO, as Amended, and Regulations April 10, 1940, as amended, are hereby further Issued Pursuant Thereto, Relating to Transactions amended so that as of the date hereof there shall be in Foreign Exchange, Etc.* substituted for the words "Norway, Denmark, the Netherlands, Belgium or Luxembourg," wherever A General License is hereby granted authorizing they appear in such General Licenses, the words banking institutions within the United States to make "Norway, Denmark, the Netherlands, Belgium, Lux- all payments, transfers and withdrawals from acembourg or France." counts in the name of any of the following: Banco General License No. 12, issued under Executive Holandes Unido, Buenos Aires, Argentina, Caracas Order No. 8389 of April 10, 1940, as amended, is and Maracaibo, Venezuela; Banco Hollandez Unido, hereby further amended by substituting a comma for Rio de Janeiro, Santos and Sao Paulo, Brazil. the semi-colon at the end of subdivision 2 thereof Banking institutions within the United States makand adding thereafter the following: ing such payments, transfers or withdrawals shall file promptly with the appropriate Federal Reserve "or subject to the property interests therein as bank weekly reports showing the details of the transof June 17, 1940, of France or any national thereof;" actions during such period. p ^ BELL Acting Secretary of the Treasury. D. W. BELL, Acting Secretary of the Treasury. Treasury Department, Office of the Secretary, June 19, 1940 Treasury Department, Office of the Secretary, June 17, 1940 General License No. 20 Under Executive Order No. 8389, April 10, 19UO, as Amended, and Regulations General License No. 17 Under Executive Order No. Issued Pursuant Thereto, Relating to Transactions 8389, April 10, 1940, as Amended, and Regulations in Foreign Exchange, Etc.* Issued Pursuant Thereto, Relating to Transactions in Foreign Exchange, Etc.* A general license is hereby granted authorizing banking institutions within the United States to make A general license is hereby granted authorizing all payments, transfers and withdrawals from acbanking institutions within the United States to counts in the name of any individual who is a citizen make payments from accounts in which France or a of the United States and who is domiciled in, or resinational thereof has a property interest within the dent of, the Netherlands East Indies or the Nethermeaning of the Executive Order of April 10,1940, as lands Wes^ Indies; provided that no foreign country amended, and the Regulations issued thereunder, of named in Executive Order No. 8389, as amended, or checks and drafts drawn or issued prior to June 17, any national thereof (other than such citizen of the 1940, and to accept and pay and debit to such ac- United States) has, or has had at any time (whether counts drafts drawn prior to June 17, 1940, under prior to, on, or subsequent to April 10, 1940), any letters of credit; provided, that each banking institu- interest of any nature whatsoever, direct or indirect, tion making any payment or debit authorized by this in such account. general license shall file promptly with the appro- Banking institutions within the United States makpriate Federal Reserve bank weekly reports showing ing such payments, transfers or withdrawals shall the details of such transactions. file promptly with the appropriate Federal Reserve bank weekly reports showing the details of the D. W. BELL, Acting Secretary of the Treasury. transactions during such period. For the purpose of this general license the Netherlands East Indies and the Netherlands West Indies Treasury Department, Office of the Secretary, shall be deemed to include the following, respectively: June 18, 1940 Netherlands East Indies—Java and Madura, Sumatra, Riouw-Lingga archipelago, Banka, Billiton, General License No. 18 Under Executive Order No. Celebes, Borneo (West, South and East Divisions), 8389, April 10, 191*0, as Amended, and Regulations Timor archipelago, Bali and Lombok, Lesser Sunda Issued Pursuant Thereto, Relating to Transactions Islands and Dutch New Guinea. in Foreign Exchange, Etc.* Netherlands West Indies—Dutch Guiana, Dutch St. A General License is hereby granted authorizing Martin, Curacao, Bonaire, Aruba, St. Eustatius banking institutions within the United States to make and Saba. D w BELLJ all payments, transfers and withdrawals from ac- Acting Secretary of the Treasury. counts in the name of the French American Banking Corporation, New York City. •Sec. 5(b), 40 Stat. 415 and 966; Sec. 2, 48 Stat. 1; Public Banking institutions within the United States mak- Resolution No. 69, 76th Congress; 12 U. S. C. 95a; Ex. Order ing such payments, transfers or withdrawals shall 6560, Jan. 15, 1934; Ex. Order 8389, April 10, 1940; Ex. Order 8405, May 10, 1940; Ex. Order 8446, June 17, 1940; Regulations, file promptly with the appropriate Federal Reserve April 10, 1940, as amended May 10, 1940, and June 17, 1940. JULY 1940 653 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Front a Legal Standpoint Treasury Department, Office of the. Secretary, Treasury Department, Office of the Secretary, June 19, 1940 June 25, 1940 Revocation of General License No. 10, as Amended, Amendment to General License No. 2 Under Execw- Under Executive Order No. 8389, April 10,1940, as tive Order No. 8389, April 10, 19%0, as Amended, Amended, and Regulations Issued Pursuant Thereto and Regulations Issued Pursuant Thereto, Relat- Relating to Transactions in Foreign Exchange, ing to Transactions in Foreign Exchange, Etc.* Etc.* General License No. 2 is hereby amended to read General License No. 10, as amended, authorizing as follows: banking institutions within the United States to make all payments, transfers and withdrawals from ac- "A General License is hereby granted authorizing counts in the name of the Banque Beige pour l'Etranbanking institutions within the United States to ger, Overseas, Ltd., including its New York agency, debit accounts with such banking institutions in the Banque Beige pour FEtranger in Paris, including which Norway, Denmark, the Netherlands, Beligum, its Marseilles agency, the Banque Beige et Inter- Luxembourg or France or a national thereof has a nationale en Egypte, the branches and agencies of property interest within the meaning of the Execu- the Banque Italo-Belge in London, Paris, Le Havre, tive Order of April 10, 1940, as amended, and the Buenos Aires, Montevideo, Rio de Janeiro, Sao Paulo, Regulations issued thereunder, in payment or reim- Santos and Campinas, the branches of the Banque bursement for interest due to such banking institu- Beige pour l'Etranger—Extreme Orient in Shanghai, tions, cable, telegraph, telephone charges, or postage Tientsin, Hongkong and Hankow, and the office in costs, custody fees and service charges, including but Bordeaux and the branches in London and the Belnot by way of limitation minimum balance charges, gian Congo of the Banque du Congo Beige is hereby account carrying charges and reference books, notary revoked. and protest fees, photostats, credit reports, tran- D. W. BELL, scripts of statements, registered mail insurance, stationery and supplies, checkbooks and other similar Acting Secretary of the Treasury. items, provided that all banking institutions making Treasury Department, Office of the Secretary, any such debits shall file promptly with the appro- June 26, 1940 priate Federal Reserve bank weekly reports showing Revocation of General lAcense No. 7 Under Executhe details of such debits." tive Order No. 8389, April 10, 1940, as Amended, D. W. BELL, and Regulations Issued Pursuant Thereto, Relating Acting Secretary of the Treasury. to Transactions in Foreign Exchange, Etc.* General License No. 7 authorizing all payments, Treasury Department, Office of the Secretary, transfers and withdrawals from accounts of the Gov- June 21, 1940 ernment of Belgium and the Banque Nationale de Belgique is hereby revoked. General License No. 21 Under Executive Order No. H. MORGENTHAU, JR. 8389, April 10, 1940, as Amended, and Regulations Issued Pursuant Thereto, Relating to Transactions Secretary of the Treasury. in Foreign Exchange, Etc.* Financial Transactions Under Neutrality Act of 1939 A General License is hereby granted authorizing The President of the United States on June banking institutions within the United States to 10,1940, issued a proclamation under authormake all payments, transfers and withdrawals from ity of section 1 of the Neutrality Act of 1939 accounts in the name of the Netherlands Trading Society East, London. (Pub. Res. No. 54, 76th Cong.), approved No- Banking institutions within the United States mak- vember 4, 1939, proclaiming that a state of ing such payments, transfers or withdrawals shall war exists between Italy, on the one hand, file promptly with the appropriate Federal Reserve and France and the United Kingdom, on the bank weekly reports showing the details of the transother hand. Section 7 of the Neutrality Act actions during such period. of 1939, with respect to financial transactions D. W. BELL, Acting Secretary of the Treasury. by persons within the United States relating to countries named in the Presidential proc- *Sec 5(b), 40 Stat. 415 and 966; Sec. 2, 48 Stat. 1; Public lamation, is quoted in full on page 1054 of the Kesolution No. 69, 76th Congress; 12 U. S. C. 95a; Ex. Order 6560, Jan. 15, 1934; Ex. Order 8389, April 10, 1940; Ex. Order Federal Reserve BULLETIN for December 8405, May 10, 1940; Ex. Order 8446, June 17, 1940; Regulations, 1939. I April 10, 1940, as amended May 10, 1940 and June 17, 1940. 654 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

7tam the j£oatd*5 (Zottelyiondence I *T*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. /Ac (Zuxtencu *Tumcti&n oj\ the Inquiries are frequently received concerning the merce and business, to hold the reserves of currency function of the Federal Reserve Banks. member banks and to make advances to them To explain in detail how the Federal Reserve Banks when they are in need of additional funds, to furnish an elastic currency in response to the needs of the public, the following statement has been pre- supply an elastic currency, to facilitate the pared and is printed in this monthTs issue of the collection of checks and interregional trans- BULLETIN as a matter of general information. fers of credit, to act as fiscal agents and depositaries of the United States Treasury and T HREE fundamental facts must be kept in other Governmental agencies. mind in order to understand the functions The assertion sometimes made that the of the Federal Reserve Banks in relation to Government has turned over the power to the country's supply of currency. These facts issue money to a private agency which uses are: (1) the Federal Reserve Banks are semi- such power for its own profit is contrary to public institutions with Government repre- the facts both as a matter of law and as a sentation on the boards of directors; they matter of practical operation. operate under the general supervision and in The amount of money in circulation at a some vital matters under the control of the given time represents what the public col- Board of Governors of the Federal Reserve lectively wants, since currency always moves System, a Governmental body whose mem- out of the Federal Reserve Banks when the bers are appointed by the President with the demand for it increases and returns to them advice and consent of the Senate. (2) The when the demand subsides. This is what is Federal Reserve Banks are not operated for meant by an elastic currency. When curthe purpose of making profits, but for the pur- rency is needed, the public obtains it from its pose of serving the public interest in ways local banks, and the latter obtain it from the prescribed by the law. (3) The amount of Federal Reserve Banks. When it is not money in circulation is determined by the needed, the public deposits it in the local needs of the public and not by the Federal banks, and the local banks in turn redeposit Reserve Banks. it in the Federal Reserve Banks. The Fed- The Federal Reserve Banks were created eral Reserve Banks may be regarded as reserfor purposes stated as follows in the preamble voirs from which additional currency is to the Federal Reserve Act: "To furnish an drawn when the public requires it and to elastic currency, to afford means of redis- which currency not required by the public is counting commercial paper, and to establish returned. The Federal Reserve Banks have more effective supervision of banking in the no direct way of keeping in circulation a United States." The principal functions of larger amount of currency than the public the Federal Reserve System are to exert an requires, or reducing the amount of currency influence on changes in the supply ami cost of that the public needs to finance its current credit with the view to accommodating com- operations. JULY 1940 655 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

From the Board's Correspondence The demand for currency is determined by equal in amount to the notes to be issued. various conditions. A certain minimum is This collateral, as provided by law, may conrequired for day-to-day cash expenditures of sist only of the following assets: (1) promisindividuals; a certain minimum is required sory notes, drafts, bills of exchange, or acfor pay rolls. There are times when personal ceptances, usually referred to as "eligible expenditures rise, as during holidays, and paper"; (2) gold certificates on hand or due there are times when pay rolls rise, as during from the United States Treasury; and (3), autumn. Certain individuals, businesses, and until June 30, 1941, United States Governcommunities have their own periods when ment securities bought in the open market. they need more or need less cash than ordi- Federal Reserve notes are a first lien on all narily. The net effect of all of these factors the assets of the issuing Federal Reserve is that the amount of currency which is used Bank, and a 40 per cent reserve in gold cerfor these purposes shows a rather regularly tificates must be maintained against them. repeated cycle during the year. After the first of January, when retail trade falls off In all cases Federal Reserve notes are isfollowing the holidays, currency is redepos- sued only for an adequate consideration. The ited in banks, and there is a tendency for the currency an individual receives from his local amount in circulation to decline. During the bank is charged against the amount he alsucceeding spring months, when outdoor in- ready has to his credit on the bank's books, dustries become active and pay rolls increase, and the currency the local bank receives from currency is drawn out of the banks and the the Federal Reserve Bank is charged against amount in circulation tends to increase. This the amount it already has to its credit on the tendency is apt to be resumed during the latter's books. autumn and early winter to a regularly re- As of June 26, 1940, the Federal Reserve curring peak of demand for currency in Banks had obtained $5,453,000,000 of Fed- December. eral Reserve notes, of which $5,145,000,000 In addition to seasonal movements in de-were in circulation and $308,000,000 were mand, the amount of currency also responds held in the vaults of the Federal Reserve to increases and decreases in trade and pay Banks. The collateral held against these notes rolls as the amount of business done by the was as follows: country increases or decreases. At times when production is rising, this sensitive re- Gold certificates on hand and sponse of currency to business needs may be due from U. S. Treasury. . $5,558,000,000 of considerable importance in determining Eligible paper 1,000,000 the amount of currency in circulation. Hoarding may also be an important factor in in- Total $5,559,000,000 creasing the demand for currency. In the course of a few weeks in the period preced- Gold certificates are issuable to the Federal ing the banking holiday in 1933, the Federal Reserve Banks by the United States Treas- Reserve Banks furnished the public with ury in return for deposit credit to the Treasas much as $2,000,000,000 of additional currency. ury's balance on the books of the Federal For more than twenty-five years the Fed- Reserve Banks.1 The Federal Reserve Banks eral Reserve Banks have fully met the normal are not authorized to pay out these gold cerdemands of the country for currency; they tificates. As indicated, the Federal Reserve have also fully met peak demands both in Banks have pledged $5,558,000,000 of these times of prosperity and in times of depres- certificates against $5,145,000,000 of their sion, and they have made it possible for theown notes in circulation. Federal Reserve volume of money to decline automatically notes, therefore, at present are virtually subwhen the public demand for it declined. In- stitutes for gold held in the United States elasticity of the currency is no longer a Treasury. They constitute about two-thirds problem. of the total of $7,780,000,000 of money in Machinery of note issue.—Before a Fed-circulation. eral Reserve Bank can obtain Federal Reserve Under the law the Federal Reserve Banks notes it must deposit as security with the local also have the authority at present to issue representative of the Government, known as the Federal Reserve agent, collateral at least 1 For explanation of the use of gold certificates, see Federal Reserve BULLETIN for June 1940, p. 531. 656 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

From the Board's Correspondence what are known as Federal Reserve Bank Treasury to provide for their redemption. notes, which are to be distinguished from No such notes are now being issued. Federal Reserve notes. These notes, when National bank notes, of which about $166,issued, must be secured by at least an equal 000,000 are still in circulation, are also no amount of collateral, which may consist either longer being issued. There are now no obliof direct obligations of the United States or gations authorized to serve as security for of promissory notes, drafts, bills of exchange, these notes, and the national banks have deor bankers' acceptances acquired by the Fed- posited with the Treasury sufficient funds to eral Reserve Banks under the provisions of redeem all their outstanding notes, which are the Federal Reserve Act. There are about being retired from circulation. $22,000,000 of these notes in circulation, but All other kinds of money—United States the Federal Reserve Banks have deposited a notes, silver certificates, and coin—are issued sufficient amount of lawful money with the exclusively by the United States Treasury. (Zuttent £'rent5 Death of Class A Director New Edition of Chart Book Frank W. Sponable, President of the Miami A new edition of the Federal Reserve County National Bank, Paola, Kansas, who Chart Book will be issued in the early part had served as a Class A director of the Fed- of July with all information available as of eral Reserve Bank of Kansas City since Jan- June 14, 1940, plotted on the charts. This uary 1, 1923, died on June 21, 1940. book was first published in September 1938, containing information as of August 31, and Death of Class B Director John D. Middleton, President of the Texas was briefly described in the Federal Reserve Refining Company, Greenville, Texas, who BULLETIN for October 1938. The price of had served as a Class B director of the Fed- the book is 50 cents. A table giving current eral Reserve Bank of Dallas since January 1, data appears regularly in the BULLETIN at 1933, died on June 17, 1940. the end of the section on domestic statistics. Admissions of State Banks to Membership in the Federal Reserve System The following State banks have been ad- Minnesota mitted to membership in the Federal Reserve Hawley—State Bank of Hawley. System during the period May 16, 1940 to Missouri June 15, 1940, inclusive. Springfield—The Southern Missouri Trust Com- California pany. Auburn—Placer County Bank. Ohio Indiana Lodi—The Lodi State Bank. ' Columbia City—The Farmers' Loan and Trust Strasburg—The Citizens-State Bank of Stras- Company. burg, Ohio. Crawfordsville—Elston Bank & Trust Company. Pennsylvania Mohawk—The Mohawk State Bank. (Organized to succeed a State member bank with Linesville—Farmers and Merchants Bank of similar title upon the expiration of its charter.) Linesville. West College Corner—The Farmers State Bank. Newtown—Newtown Title and Trust Company. Iowa Texas Forest City—Forest City Bank & Trust Com- Crowell—Crowell State Bank. pany. Cuero—Farmers State Bank & Trust Company. Jesup—Farmers State Bank. Lorenzo—Lorenzo State Bank. Kansas Sulphur Springs—Sulphur Springs State Bank. Hoxie -The Hoxie State Bank. Virginia Michigan Amherst—Farmers and Bank of Amherst. Ludington—Ludington State Bank. Wisconsin Manistique—The State Savings Bank of Manistique. Kewaunee—State Bank of Kewaunee. JULY 1940 657 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

7'oteian Manklna Jlaw5 and TQepott ofo ike. Siviid A/atlonaL jS& The annual report of the Swiss National and raw materials. The fight against un- Bank for the year ending December SI, 1939, employment has been succeeded by the strugwas presented to the annual meeting of share- gle against the high cost of living. The State holders by the Board of Directors on Feb- has intervened in every branch of economic ruary 1U, 19U0. Sections of the report arelife, supervising imports and exports, providgiven in translation herewith:1 ing for the nation's food supply and regulating production, rationing and regulating con- Background of world economy.—In 1939 sumption, and controlling price movements. world economy was even more profoundly Since, from the very beginning, the battle was influenced than in the preceding years by the joined in the economic field to a greater international political situation. It was hoped degree than in 1914, neutral countries are that the feverish diplomatic activity of gov- already keenly feeling its consequences. ernments would make possible the peaceful Moreover, they have been driven to heavy settlement of the conflicts. Unfortunately all sacrifices for the protection of their frontiers. efforts were fruitless and, in the early days Economic conditions in Switzerland.—In of September, recourse to arms brought an spite of international political disturbances, end to diplomatic negotiations. the business situation in Switzerland until In most countries, armament orders and the outbreak of war was somewhat better measures of war economy remained the main than in the preceding year. Swiss industry support of economic life. It was not possible received orders for armaments from sources to assure a normal and firm foundation for at home and abroad; it also benefited, in economic activity through the international increasing degree, from other orders which exchange of goods. Despite intense activity industries of various countries found themin the negotiation of commercial treaties, selves unable to fill because they were fully world commerce in the first seven months of occupied in the manufacture of war mate- 1939 did not fully attain the value it had rials. On the other hand, some branches of reached in the corresponding period of the the export industry had to struggle as in the preceding year. If industrial production in- past against considerable difficulties. Becreased and if unemployment decreased, it cause of the accumulation of clearing balwas as a result of orders from the State. As ances, Swiss exports to certain countries had before, the spirit of enterprise of private to be cut down. During the closing months individuals was paralyzed by circumstances. of the year, however, payments to Switzer- The aggravation of the political situation land greatly increased in the compensation in August and the opening of hostilities in trade with Germany and Italy, so that the September greatly altered the structure of situation considerably improved. world economy. If the search for suitable In the first eight months of 1939, that is means of expanding exports formed the prin- until the outbreak of hostilities, the value of cipal duty of Governments before this period, the Swiss foreign trade was 223,000,000 they have now become absorbed in the task francs greater than in the same period of of assuring the importation of food products the preceding year; imports contributed 133,- 000,000 francs and exports 90,000,000 francs 1 The report, available in French, contains in addition sections to this excess. New commercial treaties were dealing with economic conditions in Switzerland (agriculture, tourist trade, building, etc.) various emergency control measures, signed with foreign countries to regulate the security exchanges, regulations for insurance companies, the standstill agreement with Germany, etc., as well as a section exchange of goods and reciprocal payments. on personnel and administration of the Bank. There are also Since the first of July only a single clearing a number of tables showing the operations of the Bank in detail. For earlier reports see BULLETIN for May 1939 and 1938, has existed between Switzerland and Ger- April 1937, May 1936, April 1932, etc. 658 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Banking Laws and Reports many (excluding the protectorate of Bo- nessed, in October, a marked revival of our hemia and Moravia); this embraces, in addi- imports and exports. Nevertheless our extion to the territory of the old Reich, Austria, port industries continued to encounter diffithe Sudeten districts and the territory of culties, some of them new ones. The bel- Memel. The agreement of July 5 established ligerents and certain neutral States control a better coordination of receipts and pay- their foreign commerce; some countries, with ments and contained a new formula of ap- which payment operations were still free, portionment for payments to the various have now regulated exchange transactions. groups participating in the clearing. How- General mobilization of the Swiss army and ever, the war so greatly altered the situation the difficulties of obtaining and more parthat new conversations had to be undertaken. ticularly of transporting the raw materials In order to maintain the trade between the required by our factories have limited protwo countries, at least as far as possible duction. The shortage of labor has been offunder the existing circumstances, it was set as far as possible by lengthening working necessary to overcome certain difficulties, hours. The building industry has been most especially those arising out of the accumula- seriously affected by the consequences of war. tion of arrears in the merchandise clearing The number of requests for building permits account. After tedious negotiations, an has diminished greatly and authorized projagreement was signed on October 24, 1939. ects have not been started to the extent an- Among the measures of economic policy ticipated. Undoubtedly the situation of the taken before the war, there should be men- labor market was eased by the calling up of tioned the Federal decree of April 6, 1939, troops and by the necessity of replacing the amending the Federal constitution to permit working force of skilled labor; but the standthe appropriation and partial cover through still in certain activities and the adaptation taxes of credits to be applied to the strength- of existing enterprises to the needs of war ening of national defense and to relief of economy, especially in watchmaking and in unemployment; it was accepted by the peo- the textile industry, temporarily increased ple by vote of June 4, 1939. By virtue of this unemployment. decree, a credit of 327,700,000 francs was Federal finances.—The relatively favorable made available to the Federal Council to be development of Swiss economy from the first utilized for the purposes specified, and the of the year to the beginning of the war is Confederation was authorized to collect a reflected also in the position of the Federal corresponding tax on retail trade establish- finances; indeed the growth of merchandise ments. Article 4 of the Federal decree has imports increased customs receipts and the a particular significance for the central bank expansion of merchandise traffic improved because it requires the Bank to advance from the earnings of the Federal Railways. Althe exchange equalization fund two amounts though in September the opening of hostilof 75,000,000 francs each, to be loaned to ities and the mobilization affected adversely the Confederation and to the cantons respec- the customs receipts and the receipts of Fedtively. In return the Treasury is to deliver eral transportation enterprises, their total bills discountable at a lower rate than the amount was 76,000,000 francs higher than in official discount rate. These credits were the preceding year. But war affects expendialmost entirely exhausted at the end of 1939. tures of the State far more profoundly than Following the vote of June 4, 1939, the initia- its revenues. It is scarcely possible to estitive petition concerning the creation of a mate at present the outlay imposed upon the national employment program was with- country by the mobilization and war economy. drawn. One thing is certain, that only the spirit of The opening of hostilities unfortunately sacrifice manifested by all classes of the popcaused a sharp decline in the curve of busi- ulation can prevent an immeasurable inness activity which had been rising during crease in the service of the ^Federal debt. A the first eight months of the year; it entirely sound financial system requires above everytransformed the structure of our economic thing the creation of new and abundant relife. First of all the fact that the belligerent sources. To the extent to which the returns states interrupted the international exchange from taxes and duties are insufficient, or of goods has greatly reduced Switzerland's when at certain periods of the year receipts foreign commerce. It is true that we wit- are inadequate to cover current needs, neces- JULY 1940 659 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Banking Laws and Reports sary funds will have to be obtained by bor- quotations of the British pound and the rowing. The central bank should not be French franc since August should have occalled upon, except temporarily, to furnish casioned renewed anxiety in our export infunds by discounting rescriptions.2 dustries. In normal circumstances, this al- Monetary policy.—No change occurred in teration of exchange rates doubtless would 1939 in the guiding principles of our mone- have profoundly affected the competitive tary policy. The Swiss franc was maintained power of Switzerland in the field of prices. at the level fixed in the instructions of theBut war creates new conditions in the sphere Federal Council of September 27,1936, which of international trade. The possibility of exrepresents a devaluation of about 30 per cent porting no longer depends solely, nor even in relation to the former gold parity. In the primarily, on the cost of production, but first four months of the year, as a result of rather on the absorptive capacity of the forthe demand for dollars caused by events in eign markets, and especially on the prompt- Europe and of the sale of Swiss securities ness of deliveries. Besides, the future will held by foreigners, the National Bank had show whether a large increase in foreign to give up more than 400,000,000 francs of prices will not reduce, or indeed entirely wipe foreign exchange. The political tension which out the present price differentials. developed in the summer did not unsettle the The war has once more proved that it does Swiss franc. In contrast to developments not lie within the power of central banks to abroad, where some countries proceeded to stabilize prices. These have risen even in make heavy shipments of gold to the United countries like Sweden, where the Govern- States, the exchange market in Switzerland ment has made the maintenance of stable preserved almost complete calm until August prices the guiding principle of its monetary 25, 1939, the date on which England ceased policy. All the measures adopted in various to support the pound. Even then the Nacountries to prevent severe rises in prices tional Bank provided such amounts of exconcern commodities and not the currency. change as the market required, and after a A report by the Board of Governors of the few days the demand ceased. The fluctua- Federal Reserve System on March 13, 1939, tions of the British pound and of the French demonstrates conclusively that it is imposfranc, the introduction or the strengthening sible to regulate prices by varying the quanof exchange control in several countries, and tity of money in circulation and that the finally the war and the general mobilization maintenance of stable price averages does not of the Swiss army had no effect on the Swiss necessarily guarantee permanent prosperity. franc. Not until the end of October did the Currency depreciation and exchange conmarket renew its calls on the National Bank trol involve considerable risks for exporters. for exchange. This exchange for the most The ordinary method of minimizing or elimipart served to finance an excess of imports nating exchange risks consists in selling foramounting to 304,000,000 francs in the last ward the exchange representing credits due quarter of 1939 as against 44,000,000 francs from foreign customers. But this procedure in the corresponding period of 1938. Certain is not applicable in all cases; it is excluded at amounts of exchange were required to rethe outset in transactions with countries deem Swiss obligations—banknotes and sewhich have instituted exchange control. curities—which foreign exchange regulations Since 1934, the Confederation has assumed caused to flow back to Switzerland. The a guarantee of part of the risks resulting amount of gold and exchange furnished by from the depreciation of foreign currencies, the National Bank to finance imports or to transfer difficulties, and moratoria, as well transfer capital did not amount to more than as from the defaults of States, municipalities 111,000,000 francs from the end of August to or other public corporations which have the end of December; however, it should be placed orders. The Federal law of April 6, noted that in the middle of October, Switzer- 1939, established this guarantee on a new land received from France some 75,000,000 and broader base. For its part, the National Swiss francs representing the repayment of various loans. Bank has granted advances in foreign currencies to export houses as a means of reduc- It is natural that the recent drop in the ing exchange risks. Thanks to the cooperation between central banks and the Bank for fl "Rescriptions"—Bills of public bodies such as the Federal, International Settlements, the National Bank Cantonal, and municipal governments, and the State Railways. 660 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Banking Laws and Reports has been able to obtain from the latter insti- been in full possession of the issue privilege tution advances in foreign currencies which for only four years; furthermore it had only were then turned over to exporters against a modest metallic stock, which did not persuitable security. As the exporter imme- mit it to adjust the total of the fiduciary diately converted into Swiss francs at the pre- circulation to the needs of business in the vailing rate the amount loaned in foreign broad sense of the term. Accordingly the currency, and as he used the foreign money issue of bank notes and of silver coin had to received in settlement of his invoice to repay be restricted very early. But when war broke the National Bank, he avoided exchange risks. out in 1939, the national bank was ready; it Exchange Equalization Fund.—The Con- had gold and exchange in ample supply and federation's imperative need of funds has was holding a considerable stock of notes. aroused the desire to meet the cost of mobili- That is why its situation did not at any time zation from the Exchange Equalization Fund, compel it to restrain the circulation of bank which was created from the so-called profit notes. Even in the critical days at the end from the revaluation of gold. Considering of August and the beginning of September, the prevailing insecurity in the international payments were made easily and without dissituation, political as well as monetary, the turbance. It is true that some banks ex- National Bank is still convinced that, until perienced considerable withdrawals of funds; the situation changes, this fund must not be but the application of the ordinary restricdissipated. The reasons which prompted the tions on withdrawals of funds entered in sav- Federal Council, at the time of the devalua- ings and other time deposits proved an adetion, to place at the disposal of the National quate means of protection. Withdrawals Bank the book profit resulting from their made at cantonal banks and the big banks sovereign action and to consider it as a re- from creditor current accounts, savings acserve set aside to support the monetary policy counts and other time deposits represented, of the central bank, have lost none of their in August 1939, 2.74 per cent of the total validity. If the Federal authorities should funds in these accounts; the percentage was nevertheless decide to utilize the fund in ques- 2.27 in September 1938. By comparison we tion, the National Bank would request that a may mention that in postal checking accounts, portion be left with it as a special reserve the balances belonging to holders of transfer set aside to cover the risks of monetary opera- accounts had fallen approximately 10 per tions ; it expects, however, that the Confed- cent in August from their total at the end of eration will assume the losses resulting from July. Bank customers made practically no monetary measures adopted by Switzerland demands for credit. The fact that the canand foreign countries, to the extent to which tonal banks and the big banks were able to they exceed this reserve. pay out, practically without calling on the Note circulation.—Experience shows that central bank, some 650,000,000 francs of deserious political disturbances create heavy posits—excluding inter-bank deposits—bedemands for currency. For example, in 1938, tween the end of the year 1938 and the end at the time of the conflict between Germany of November 1939 attests clearly the liquidity and Czechoslovakia, the circulation of notes of the Swiss banks. of the National Bank expanded by 387,000,000 The demand for notes by commerce, indusfrancs to 1,933,000,000 francs between Sep- try and the banks after the declaration of tember 7 and September 30, marking an in- war indicated the desire to increase their crease of 25 per cent; in 1939, at the out- liquidity. Private individuals had also taken break of hostilities, it rose 390,000,000 francs, the precaution to lay in a supply of notes in or 23 per cent, to a total of 2,079,000,000 anticipation of mobilization or to buy housefrancs, between August 15 and September 2, hold supplies. Considerable sums were drawn the date of the general mobilization of the solely for hoarding. Swiss army. The situation today is not com- This year, as in 1914, the public hoarded parable to that of 1914; at that time a large silver coin; as a result the National Bank quantity of gold coin was in circulation and found itself obliged to issue five-franc notes this had to be replaced by notes at the be- on August 29, 1939. The decree of the Fedginning of the war. eral Council of October 3, 1921, still in effect, In 1914 the National Bank was only par- conferred this power on the Bank. The fivetially prepared for war. At that time it had franc notes placed in circulation in 1914 were JULY 1940 .661 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Banking Laws and Reports later withdrawn, for sanitary reasons as well sire that the banks continue to refuse safeas for the sake of economy, but they had not keeping of Swiss bank notes. Indeed this been officially abolished. measure is in accord with the interest of the Contrary to the situation in the autumn of banks, since hoarding deprives them of funds 1938, it was notes of 100 francs and under which they need for their credit operations. that were in demand, while withdrawals of The Swiss money market.—The protracted notes of 1000 and 500 francs were not so large political tension did not fail to affect the as at that time. Although somewhat dimin- Swiss money market. Demand deposit liabiliished, the proportion of notes of large denomi- ties of the National Bank fell by more than nation in the figure for fiduciary circulation half a billion francs in the first five months shown on the Bank's balance sheet is still of the year and then by a further 350,000,000 extremely high; in terms of annual averages, francs up to the end of December. This shrinkthis proportion was 36.24 per cent in 1939, age of market funds deposited at the central 37.94 per cent in 1938, and 17.10 per cent in bank was at first occasioned by the with- 1929. drawal of foreign capital deposited in Swit- Switzerland belongs to the group of coun- zerland, then by withdrawal of notes in Autries in which the fiduciary circulation shows gust, and, subsequently, by the demand for the greatest expansion in times of political exchange intended principally for the financtension. This fact is easily explainable if we ing of imports; another cause was the conrecall the importance of Switzerland as an traction of exchange receipts resulting from international financial center and the exist- the unfavorable movement of the Swiss balence of considerable demand and time de- ance of payments. In order to subscribe for posits which, held in the banks or in postal deposit receipts (bons de caisse) issued by accounts, serve as a means of settlement with- the Confederation, some banks which had out cash transfers but which can be trans- considerable balances at the central bank formed into bank notes at any time. drew on their transfer accounts for 120,000,- Experience shows that when once placed 000 francs in May and 200,000,000 in Octoin circulation bank notes do not flow back ber. At the close of 1939 the National Bank's very soon. From the point of view of the demand deposit liabilities still amounted money and capital markets, the hoarding of to 789,000,000 francs against 2,000,000,000 bank notes has practically no significance, francs at the beginning of 1938. It may be so long as the banks have sufficient funds to mentioned that these 789,000,000 francs, conduct their credit operations and so long as which represented several times the volume interest rates are low. But dishoarding is a of funds in transfer accounts prior to 1930, necessity from an economic standpoint when were distributed very unequally among the funds needed by the economic system are holders. drawn from the banks or withheld from them; Only a relatively small number of banks it is also necessary when the tension prevail- were forced by the considerable withdrawals ing on the money and capital markets causes effected by customers to call on the central money rates to rise. This was certainly the bank for rediscount of bills or for advances situation at the outbreak of the war. That is on security. Contrary to the course of events why the return to the banks of notes which in 1914, the central bank was able to refrain are not indispensable to the conduct of busi- from increasing the discount credits or relaxness, and their concentration in the central ing the severity of the qualifications for elibank, are a duty to the national economic gible bills. defense. The bill portfolio contains special bills Gentlemen's Agreement.—Because of which the National Bank has admitted to dischanges which have taken place in the situa- count by virtue of an understanding with the tion, it has not proved necessary to renew Federal Department of Public Economy and the Gentlemen's Agreement which the Na- which serve to finance the accumulation of tional Bank concluded with the banks on No- stocks of goods in order to assure necessary vember 15, 1937, with a view to reducing the supplies for the country. Discount credits excessive amounts of foreign deposits in for this purpose have been opened for confrancs at Swiss banks, and which had been cerns which, under the law of April 1, 1938, extended to the end of 1939. At the same covering the maintenance of essential suptime, the National Bank has expressed a de- plies, have concluded with the Federal De- 662 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Banking Laws and Reports partment agreements relating to such stocks. vested in this manner. Under Article 10, The National Bank has made its credit avail- paragraph 1, of the banking law, the National able for these operations since it has felt that Bank was called upon to approve 123 inimporters undertaking this task were entitled creases of the rate on deposit receipts. When to a supply of capital on the most favorable acting on requests of this nature, it must terms. A considerable proportion of the bills consider the economic welfare of the country drawn for the financing of stocks was dis- and the legitimate interests of the petitioning counted by other banks rather than by the banks. Although the increase of the rate is National Bank. not an infallible expedient, it is comprehen- The private discount rate applicable to sible that, in order to assure their liquidity bank bills and to prime commercial bills re- and to perform credit operations, the banks mained at the 1 per cent level, established in should desire to offer their creditors terms cal- March 1937 by agreement among the banks, culated to retain funds in their possession and until September 1939, when it rose to l1/^ per to attract additional deposits. On the other cent. Although the advantages of a certain hand, on account of the heavy indebtedness degree of stability in rates cannot be denied, of public corporations and of private businevertheless it should not be overlooked that a ness, it is important to keep the interest rate pegged private discount rate does not con- at a level which the debtor can meet. The stitute a barometer of the actual situation of mortgage debt alone amounts to about 17,the short-term money market. Recourse to 000,000,000 francs. Increase in the mortthe central bank for discount credit was too gage rate implies the danger of a rise in infrequent to suggest raising the rates at the prices of farm products and of leaseholds. National Bank. Nor did the monetary situa- High rates sooner or later force up the cost tion require modification of the rates. Be- of production and the cost of living. Moresides, in contrast to what occurred in 1914, over, even if there could be no question of few foreign central banks raised their rates artificial maintenance of rates, an effort must in 1939 and some of those raised them only still be made to maintain their stability over temporarily. a reasonably long period, taking into account Capital market.—From the beginning of the economic character of the loans. Except the year political tension in international in a few cases, interest rates on savings and affairs caused a complete change of scene on mortgage interest rates have not increased the Swiss capital market. As a result of con- up to the end of 1939. The level of mortgage siderable sales of Swiss securities, principally rates depends on the average of rates allowed by foreigners, the average yield of twelve by the banks on the funds they borrow. It is loans of the Confederation and the Federal very difficult in practice to prevent, by official Railways rose from 3.07 to 3.78 per cent from action, the raising of rates and the terminathe beginning of January to the middle of tion of mortgage credits. April. Thereafter prices improved slightly. Control over the export of capital consti- Events of August and September produced tutes another means of influencing the movean increase, temporarily exceeding 1 per cent, ment of interest rates. The requirements of in the yield of gilt-edged securities. This de- the banking law ought to prevent the withvelopment of rates in the long-term capital drawal from the market of funds needed by market is without doubt attributable to the the national economy. In the first half of general desire for liquidity; however, the rise 1939, two foreign loans were floated in in the interest rate is an international phe- Switzerland; but as they represented the connomenon. version of old loans they did not draw fresh The movement of the rates on bank deposit funds from the market. In the past year two receipts (bons de caisse) is another illustra- American stocks were listed on the exchange tion of the rapidity with which changes occur under the terms of the arrangement regardon the money and capital markets. Although ing the admission of foreign securities to in 1938 the banks still hesitated to accept trading on Swiss exchanges, effective June 7, capital offered in exchange for deposit re- 1938. The National Bank has authorized the ceipts, they found themselves obliged during listing of foreign securities, as provided by 1939 to reduce the term and to raise the rate Article 5 of that arrangement, only on conon these instruments in order to discourage dition that the banks report to it regularly withdrawals and to bring in new funds in- on the volume of securities listed. In this JULY 1940 663 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Banking Laws and Reports way it obtains data on the export of capital trust funds are almost exclusively invested through the medium of the stock exchanges. in foreign securities. The banks concerned Participations issued by investment trusts report to the National Bank periodically on offer to Switzerland a new means of export- the sale of participations issued by the trusts; ing capital. Even though securities of this in this way it keeps abreast of the outflow type are denominated in Swiss francs, the of capital through this channel. BALANCE SHEET OF THE SWISS NATIONAL BANK AS OF DECEMBER 31,1939, AND DECEMBER 31,1938 [In thousands of francs] Assets 1939 1938 Liabilities 1939 1938 Gold in Switzerland and abroad: Notes in circulation. 2,049, 853 1, 751,018 Bullion 2,046,860 2, 641, 253 Giro accounts 686, 722 1,592,641 Coin 214,749 248, 354 Federal accounts 10,924 8,221 Other deposits... 32,037 31,187 Total gold. 2,261,610 2,889,607 Foreign clearing accounts 67,814 39, 939 Drafts and checks in circulation 2,612 1,692 Cost of gold in excess of book value.. 10,676 43, 978 Rediscounts 282 422 Other cash items _._ 4,395 9,120 Capital 50,000 50,000 Foreign exchange: Surplus. 14,000 13,500 Eligible as note cover 359, 925 276, 703 Net profits 5,253 5, 253 Other 1,755 3,001 Dividend unpaid 14 13 Reserve for uninsured risks 1,000 1,000 361, 680 279,704 Reserve for printing bank notes. 1,000 1,000 Exchange Equalization Fund._ 533,469 538, 584 Swiss portfolio: Miscellaneous liabilities 46,830 46,548 Swiss bills __ 46,301 52,528 Rescriptions 1 46,400 101, 500 Other discounts.. 5,650 1,049 155,077 Securities of the Loan Office of the Swiss Confederation 6,850 3,850 Advances on security: On call at 10 days' notice 87,088 21,824 Other 2,500 29 89, 588 21,853 Government securities 80,923 90,945 Due from postal check offices 2,260 1,476 Due from correspondents in Switzerland. 16, 631 Items for collection 2,113 2,219 Coupons 157 87 Interest accrued on securities- 309 592 Unpaid capital 25,000 25,000 Bank premises.. 3,000 3,000 Furniture and fixtures (2) (2) Exchange Equalization Fund. 533,469 538, 584 Miscellaneous assets 4,798 6,316 Total assets.. 3, 501,809 4,081,018 Total liabilities.. 3, 501,809 4,081,018 1 Bills of public bodies such as the Federal, Cantonal, and municipal governments, and the State Railways. 2 Carried at 1 franc. _ _ _ ^ _ _ _ _ _ _ _ __ -f)nnual JQepott ofi the Genital Hank ofi the -f)ty entitle ?2epu(?lic . The annual report of the Central Bank of The course of the year 1939 prior to the the Argentine Republic for the fifth financial outbreak of war was characterized by the period, covering the year ending December presence of those typical features of the SI, 1939, was submitted by the Board of Di- downward phase of the trade cycle described rectors to the Meeting of Shareholding Banks in our previous Report. The deficit in the in March I960. Sections of the official Eng- balance of payments tended rapidly to exlish text are given herewith:1 haust the gold and foreign exchange reserves accumulated a short time before, and, for all 1 The report, available in both English and Spanish, contains in addition sections on the Securities Commission, supervision of that more drastic quantitative restrictions of the banking system, issue of currency, administration of the Bank, imports were imposed to diminish their voland profits for the year, etc., together with statistical tables and charts. For earlier reports, see BULLETIN for December 1939, ume and to divert the purchasing power August 1938, September 1937, and July 1936. Quotations in New York of the Argentine peso based on buying which was stimulating their growth towards rates for foreign currencies in the official market in Buenos Aires industry, the moment appeared imminent averaged $0.29773 in December 1939. For Law 12,155, cited in this report, see BULLETIN for July when it would become necessary to make use 1935, pages 449-454. 664 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Banking Laws and Reports of the gold holdings of the former Caja de EMERGENCY MEASURES TAKEN AT THE OUT- Conversion to cover the deficit. This in itself BREAK OF WAR was, of course, no cause for serious alarm Measures on the stock market.—The measbecause, as was mentioned previously, this ures adopted in regard to currency, banking, is the specific function of gold, but it did and bonds in order to meet the repercussions constitute a sound reason for considering the of the European conflict were the outcome export of that metal as a symptom and a of careful preparation from that critical timely warning of the need for moderation moment in September 1938 when the Nain the use of credit and for resolute action in tional Government outlined the main features allaying the causes of internal instability. of the plan of action to be followed in such The war interrupted this trend and moan eventuality, until the time unhappily armentarily lessened its outward effects. Other rived a year later when events provided the events compelled prompt measures in regard occasion for putting them into practice. In to currency, banking, and the Stock Exchange the meantime various hypotheses and possible and later further complications ensued in contingencies were studied and the machinery regard to foreign trade. The large purchases created by the laws of 1935 was carefully made in this country by Central European made ready for prompt emergency action. states come to an end while those of Great Just as in 1914 the initial psychological Britain and France are effected with obvious shock of the war was felt principally in the economy. The system of bilateral clearing stock market. It was imperative to prevent agreements finds increasing favor in interit by timely action from spreading dangernational trade and the freedom which still ously. At that moment the Argentine Govexisted in considerable sectors of internaernment gave a decisive proof of confidence tional monetary activity disappears as rein its securities by publicly announcing its strictions are placed on the unhampered intention of purchasing any amount which movement of exchange. In regard to our might be offered to it. The Treasury was, foreign trade, imports cost us nearly 36 per it is true, in a position to take such a course cent more than formerly while the prices of without hesitation, having at its disposal conour exports rise by only 18 per cent.2 siderable reserves derived from exchange All these circumstances render it advisable profits, apart from the unused credit of up to proceed cautiously in the authorization of to 80,000,000 pesos to which it is entitled credits. The reserves of the banking system at the Central Bank. Those funds, had they must be kept in readiness for the unforeseen been launched on the market for the purchase and the exceptional and not wasted in harmof bonds, would inevitably have been reinful liberality. Only in this way was it posvested in the self-same Government sesible to have abundant resources available curities, either long-term bonds or short-term for the purchase of the last wheat crop. The Treasury bills, as happens also in debt concredit expansion brought about by these version operations which, were it not for the operations has come to an end and the subcomparatively certain return of the funds, sequent decline, which is beginning to show would not of course be attempted. The danin the total volume of loans, will probably ger of matters not taking such a course could be a not unimportant factor in the future only arise if the mass of funds derived from trend of the balance of payments. the sale of bonds emigrated. The constant No sooner, therefore, have the first obinformation which is obtained about such stacles been overcome than others emerge and movements of funds and the experience grave problems have to be confronted which, gained in the application of the exchange although they do not always appear to be control system would have rendered it poswell defined and urgent, nevertheless call for sible to intervene at any moment in order to alertness and for the preparedness of the meet such a contingency. Moreover, the means wherewith to set about solving them employment of those funds for other purwith that confidence and energy which the poses within the country would only temcountry is wont to draw from its greatest porarily withdraw them from the Stock difficulties. In the succeeding chapters of Exchange because, on these resources changthis Report those problems will be discussed ing hands in the course of such operations, in so far as they affect the Bank. the new holders are faced with an investment problem which, in the circumstances, 2 Approximate estimate of price variations in dollars. JULY 1940 665 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Banking Laws and Reports can only be solved for the greater part by the delegating three of its members who should, purchase of Government bonds. with the President of the Bank, decide with- The Government's intervention on the out further reference on all applications for Stock Exchange was based on these premises rediscounts, on the understanding that the which were soon to be confirmed by practical banks would undertake to deliver as security experience. It began on August 24 when their best paper, which would be determined investors commenced a wholesale liquidation by an examination of their portfolios to be of their securities, continuing until Septem- made immediately after the rediscount facilber 6 when trading recovered its normal ities had been granted. tempo. The Bank Inspection Department kept in The total value of the bonds purchased close touch with banking institutions in this amounted to 33,000,000 pesos, at the quota- respect and it can be asserted that the knowltions ruling when this intervention com- edge of this decision served to give a greater menced and at no time was it found necessary sense of security to those spheres of banking to resort to advances from the Central Bank. activity which were most likely to be threat- Once calm had been restored on the stock ened. Fortunately, it was only necessary to market, it was possible to commence dispos- rediscount 5,000,000 pesos and the slight ing of the purchased securities in a steadily signs of unrest which were noted in isolated rising market. During this period the Se- instances soon disappeared, more especially curities Commission managed by timely when the return of tranquility on the Stock recommendations to avoid the launching of Exchange was reflected in banking circles. new bond issues which would have hampered The measures adopted by the Central Bank the liquidation of the aforesaid securities. were no doubt exceptional, but it would have At the end of November the balance on hand been extremely difficult to take such measures had been reduced to an insignificant figure if the Bank had not been in possession of and the National Government, taking advan- accurate and definite information as to the tage of the favorable circumstances, was able condition of banking portfolios and the gensuccessfully to place its second 150,000,000 eral position of each and every banking inpeso loan as will be explained in the corre- stitution. The inspections provided for by sponding chapter. This action was entirely the Banking Law had been periodically carone of emergency and took place in excep- ried out in practically every bank in the countional circumstances. Let this be clearly try as a matter of ordinary routine, without stated for the purpose of defining the scope prejudicing any institution, and the informaof an intervention of this nature. tion derived therefrom enabled the Central Banking measures.—In the light of past Bank to act on familiar ground with the cerexperience, it had to be admitted that there tainty that no unforeseen developments could was a possibility of the psychological reaction arise. Proof has thus been forthcoming a caused by the outbreak of war also making short time after the enactment of the Bankitself felt in banking circles. The Central ing Law that, apart from other objectives Bank had, therefore, to be prepared to take which are being gradually attained, its proaction in case of need. The banks had to visions make it easier for the Central Bank be given absolute assurance that applications to take effective action by giving it direct for rediscounts arising from exceptional access to the essential facts concerning bankwithdrawals of deposits would be dealt with ing assets. without delays which might jeopardize their Monetary measures.—The peso and the position. The rediscount mechanism had not pound. On August 25, a few minutes before until then had occasion to operate under the the opening of business, the Bank of England Central Bank regime, as the relative abund- notified this Bank of the decision to withance of funds had brought about conditions draw the support which had hitherto been exactly opposite to those which might have given to sterling through the Exchange rendered rediscounting necessary. It was Equalization Account. The initial quotations advisable, therefore, to endeavor to avoid revealed an appreciable decline in the value the delays which are inevitable when a new of the pound in comparison with those of system is introduced. For this purpose the the previous day. Naturally, this event, Board of Directors of the Central Bank apart from being of the utmost importance adopted a special procedure for such cases, for the whole world, was of particular sig- 666 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Banking Laws and Reports nificance for our country which had based or index for fixing the value of our currency the value of its own currency on the British from day to day. monetary unit. For this reason it is desirable Everything pointed to the advisability of to make a brief digression regarding the proceeding cautiously, avoiding any decision relationship existing between the two curren- or measure which might compromise the cies before dealing with the manner in which country's liberty of action at so critical a the repercussions of this event had to be moment so that, once the first moments of faced. confusion had passed, it would be possible to As stated in a communique issued by the appreciate more clearly the significance of National Ministry of Finance at that time, the events. no tie whatever exists between our peso and It was therefore decided for the time being the pound sterling if that term signifies that to continue selling in the official market, at one currency must necessarily follow the fate the rate ruling up to then, the pounds reof the other. The pound has simply been quired by trade, so as to avoid checking the taken, because of its importance in our com- normal current of business, and at the same mercial and financial activities, as a refer- time to reduce purchases of pounds to a minience point for fixing the value of the peso, mum until such time as adequate means of inasmuch as, the gold standard having been safeguarding them from fluctuation should abandoned under the pressure of circum- be found. The greater part of exchange purstances, the country had perforce to find a chases from exporters during those first days basis for expressing the value of its currency were made in dollars which could be imand, of course, selected that which best suited mediately converted into gold. its interests. Neither did the course of world prices in When a currency is pegged to or dependent the principal commodities demand an imon another it undergoes all the vicissitudes mediate decision since in the early period of the latter, as mentioned in the preceding those prices, expressed in terms of sterling, paragraph. In such a case the monetary re- did not rise appreciably despite the decline serves do not consist of gold but of the for- of that currency. eign currency to which the national monetary In this way, without abandoning the pracunit is tied and any decline in the value of tice of holding monetary reserves in gold, that currency inevitably means an equivalent Argentina awaited events, ready at any time decline in those reserves. to take whatever decision was most advisable The above is in no way applicable to our according to the course of sterling: either to case. Argentina's monetary reserves have take some other currency as a reference point always been and continue to be in gold, in if the pound fluctuated erratically, or to conaccordance with national tradition and with tinue to use sterling for that purpose if the the express provisions of Law No. 12,155 Bank of England succeeded in keeping it at which, departing in this respect from the a more or less fixed rate with respect to the original recommendations, stipulates that the dollar thus protecting the pound from con- Central Bank may not keep more than 20 tinual market fluctuations. per cent of its total reserves in foreign ex- As is generally known, the latter proved to change (Art. 40). And thus adhering to this be the case. The official value of the pound practice, which is elementary in monetary was fixed at 4.02 dollars for all the normal independence, the Central Bank has bought trade and business of the United Kingdom. and sold gold in the most important foreign At the same time, in the case of transactions markets from time to time according to its effected outside Great Britain, the pound was needs. The total volume of the transactions allowed to find its own level in foreign free so effected since the commencement of the markets as announced at the time by the Bank's operations in 1935 amounts to 1,390,- Bank of England. 800,000 pesos, corresponding to 14,000,000 The moment thus arrived for this country ounces of gold. to take a decision on this point. The buying Consequently, the depreciation of the pound rate for the pound, which had remained nomdid not involve the need for modifications in inally at 15 pesos although in fact no business our monetary system, the sole effect being to was done at that rate after the first few days, make it necessary to decide whether or not to was reduced by 10 per cent to 13.50 pesos continue using the pound as a reference point on September 22 and this new buying rate JULY 1940 667 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Banking Laws and Reports served thenceforward as a basis for fixing question of the free transfer of the surplus the value of the dollar taken at the 4.02 ratio gold which may remain in the Central Bank's mentioned above, and similarly in regard to account with the Bank of England after deother currencies. ducting the sums which Argentina has to pay The exchange risk.—In this way the pur- for her imports, financial services, and other chase of pounds derived from the sale of remittances to Great Britain. It is true that our export products to Great Britain was so far this problem has not arisen in pracresumed. However, two serious problems re- tice, because the pounds which Argentina mained, one of them immediate and urgent receives are virtually counterbalanced by and the other an eventual possibility. The those which she has to use for the payments ratio of 4.02 between the dollar and the pound referred to above, but it is an elementary was not and is not a stabilized one. Every- precaution to bear in mind that it may arise thing indicated that it was the intention of later and as such it has been the object of the British Government to maintain it but the careful study from the very outset. pressure of circumstances might at any time It would be highly desirable to arrive at provoke a change. It was therefore impera- a timely and satisfactory agreement on this tive to cover this risk and for that purpose point so as to spare the country from being the Central Bank, in constant touch with the faced at some future moment with the serious National Ministry of Finance, opened nego- dilemma of either continuing its sales beyond tiations with the Bank of England, which in the point at which the problem of the surplus its turn was in close contact with the British arises, or else limiting them to the figure Treasury, to find a satisfactory solution to prudence may advise according to circumthis problem. In this way an agreement was stances. reached which came into force on October 25, By pressure of circumstances therefore we 1939, for a period of three months3 whereby have arrived in our economic and financial the pounds derived from the sale of our prod- relations with Great Britain at a system of ucts to Great Britain are deposited in a compensated payments (or clearing arrangespecial account opened in the name of the ment) similar to that which governed our Central Bank at the Bank of England. When- trade with Germany prior to the present war. ever the balance to our credit in this account It is true that since 1933 trade between the exceeds 1,000,000 pounds, after our custom- two countries has been carried on under conary payments in Britain have been made, ditions embodying some of the funadmental the surplus over that figure is immediately characteristics of clearing agreements, in converted into gold and this gold can be re- fact funds derived from our sales of export converted into sterling when our require- products to Great Britain had to be applied— ments render this necessary. The conversion except for a reasonable amount set aside for of pounds into gold and vice versa is made at public debt services to other countries—to the the price ruling on the day when the opera- payment of our imports, financial services, tion is effected. and other remittances to that country. But In this manner the first of the problems temporary surpluses could be transferred as mentioned above was disposed of and Argen- Argentina deemed convenient, although such tina, after a brief interruption, was able to amounts were in a certain sense earmarked continue selling her products to Great Britian for future transactions.4 In the freedom to for pounds. The last named country has re- dispose of surplus exchange lay the differpeatedly stated her intention of paying for ence, certainly quite an important one, beher purchases both in and outside the Empire tween the payments agreement with Great in pounds. According to current reports it Britain and that which had been arranged would appear that payment in gold or in dol- with Germany. lars is being reserved chiefly for armament With this latter country a system of clearpurchases in the United States. ing accounts had been evolved, after certain Exchange surpluses.—However, the secondexperience, which worked satisfactorily alproblem has not yet been solved, namely, the though not without the complications and disadvantages from which these devices suffer when contrasted with the free functioning 3 On January 25, 1940, it was renewed for a further three months, the British authorities agreeing to the free conversion of the gold standard. As time went on, pracinto other currencies of the reasonable annual amount required for public debt services to other countries, referred to in the agreement now in force, signed in 1933 and renewed in 1936. 4 As from the renewal of the agreement in 1936. 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Foreign Banking Laws and Reports tical experience gradually remedied the ini- the normal volume of our imports, financial tial defects of the system. At one time services, and other remittances allowed of the (1935) measures had to be adopted to lessen purchase of a considerable amount of pounds the risk of holding an appreciable volume of which could be used without any great diffireichsmarks unprotected against possible culty, in the case of France, our comparafluctuations and which could not be converted tively limited requirements of francs, in spite into other currencies. As Germany could not of the efforts which are being made to foster guarantee such free conversion no alternative imports from that country, made it possible remained but to limit exports thenceforward to foresee that the surplus exchange problem to the value of imports. For this purpose, would arise almost at once. Conversations the maximum value which such exports could on this subject between the Central Bank and reach was fixed every month in accordance the Financial Attache to the French Emwith the volume of reichsmarks sold to im- bassy led to an agreement being reached on a porters for payment of German goods, an ex- number of technical points which were afterception being made in the case of special and wards submitted to the National Government seasonal credits granted and cancelled during and served as a basis for the negotiations the year to give the system flexibility to cope which terminated in the solution of the paywith seasonal variations. ments problem between the two countries. This system of balanced trade did not, it According to the terms of that settlement, is true, prevent Argentina, in the event of her the francs which this country receives in paywishing to foster the export of any product ment for her products are likewise accumufor special reasons, from doing so without a lated in a special account at the Bank of corresponding and simultaneous expansion France and are protected against the risk of of imports; on the contrary, transactions of any fluctuation in exchange by virtue of the this kind were actually effected and at all undertaking given by the French Governtimes the measure in which they were carried ment that it will increase or diminish the out was determined exclusively by our Gov- amount of francs deposited in that account ernment, as no obligation in this respect had in proportion to the depreciation or appreciabeen stipulated in the agreement. tion of the franc in terms of dollars. It is further stipulated in the agreement that if In passing it may be mentioned that due the francs deposited in the account exceed a to the foresight with which these operations reasonable figure in relation to the value of were handled, and notwithstanding the speour exports to France the French Governcial transactions referred to above, when war ment undertakes to permit the free converbroke out there was no balance outstanding sion of such surpluses into dollars. under the agreement with Germany which might involve the interests of this country Argentina and the system of clearing in difficulties or losses. The final figure can- agreements.—The clearing system has benot yet be determined because of operations come a factor of such importance in our which are still pending, but there are well- foreign trade that a few brief comments on founded reasons for asserting that in no cir- its significance appear justified. cumstances will the balance on either side In an arrangement of this nature it is in exceed a negligible amount, more especially the interest of both parties to maintain or if compared with the figure of 1,597,300,000 develop their purchases from each other, so pesos which clearings between the two coun- as in this way to maintain or develop their tries reached between October 20, 1934, and respective sales. This explains why the December 31, 1939. policy which the National Government had Payments arrangement with France.— been pursuing through the control of prior With regard to France a situation analogous exchange permits has had to be continued in form although fundamentally different to and accentuated, although with the alterathat existing in the case of Great Britain has tions made advisable by new developments. arisen. The French Government also ex- Clearing agreements thus become not only pressed its intention of paying in francs for expressions of exchange policy but also, and its purchases of Argentine products and in in the highest degree, instruments of ecothis way the two problems of exchange risks nomic policy. It is not, of course, within the and surplus exchange again made their ap- Bank's province to express opinions regardpearance. But, whereas in the case of Britain ing the latter but some comment thereon is JULY 1940 669 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Banking Laws and Reports inevitable because of its close connection with lected. If, when peace is restored, practical monetary matters. measures to stimulate international trade are By means of clearing agreements, which agreed upon, the country will be able to take have been developed since the world economic considerable advantage of its proved ability crisis, several nations have sought to take to export increasing quantities of agriculadvantage of their position as large buyers tural and pastoral products and return to the of the products of other countries in order to gold standard with the safeguards counselled ensure their own sales to these latter coun- by long experience. But, should this not tries either for reasons of commerce or ex- prove to be the case, and international trade change or—in the case of certain European continues to be restricted by devices and exnations—for motives of international policy. pedients which tend to make the situation The experience of these countries is sufficient progressively worse, this country must seek to lead to the conclusion that while in indi- with determination and a spirit of realism vidual cases, between one particular country to find in its own resources the necessary and another, this type of agreement may pro- stimulus for its economic expansion and to mote trade, from a broader viewpoint their develop its monetary policy in whatever manwidening sphere of influence is seriously ner best serves the paramount interests of prejudicing international trade by dividing the national economy. it into a number of watertight compartments into which trade is forced in search of THE BOND MARKET bilateral equilibrium with the inevitable com- The Syndicate and bond issues during the plications which such a system entails for the year.—The market situation. In previous normal working of the monetary mechanism. Reports reference has been made to the neces- However, a country like ours, whose comsity of restoring the stability of the bond merce is only a comparatively small part of market which had been disturbed in 1937 world trade, could hardly take the lead in due to the imprudent saturation caused by seeking an improvement in this respect nor excessive issues. The year 1938, as stated in yet isolate itself effectively from the spreadlast year's Report, was one of consolidation ing influence of the clearing system. To do of the market. Sales of National bonds were so it would have to find new markets to re- limited to the low figure of 66,000,000 pesos place those which shrink or close up alto- so as to enable the pressing needs of provinces gether or cease to be free because of that and municipalities and the normal requiresystem; in other words, to have the option of ments of the mortgage bond market to be selling its products in other markets. Un- met. But a moment was bound to arrive fortunately, such new markets do not exist when, with the Stock Exchange cleared of today on a sufficient scale, as large potential the difficulties which had been disturbing its markets continue to be scarcely accessible to normal working, the National Treasury could our export products because of high tariffs. enter the market with an operation which After all, it is in no sense an exaggeration by reason of its magnitude and the manner to say that the high customs barriers which of its execution would serve to cover the redid such considerable harm to world economy quirements of the exchequer and at the same after the late war have been one of the chief time to strengthen the prestige of national causes of the growth of clearing systems, the securities by a manifest display of public effects of which have thus been added with confidence. evergrowing intensity to those produced in A favorable moment having been chosen, the first place by excessive tariffs. an issue was launched during March and These matters are of absorbing interest to was easily absorbed by the banks, the finanthis country. Deprived of the possibility of cial houses and the investing public, both as exercising a decisive influence on the in- regards the 75,000,000 pesos originally ofternational economy, it must, nevertheless, fered and a further similar amount issued closely follow its tendencies so as to be in a immediately the initial offer had been opened position to take the necessary measures at for subscription and successfully covered. the proper time. Meanwhile, the practical Organization of the Syndicate.—When the means and experience available for moderat- National Government entrusted to the Cening the consequences to our economy of tral Bank—in its capacity of Financial Agent events beyond its control must not be neg- of the Treasury—the task of carrying out 670 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Banking Laws and Reports the above mentioned bond issue, advantage tral Bank may disppse of at any time it sees was taken of the very useful experience pre- fit. Neither does it apply to bonds in the viously gained by the private syndicates portfolio of the Central Bank, which must be which had begun to operate after the large free to use them at its discretion for moneconversion operations. These syndicates in- tary or stock market purposes, nor to bonds troduced new methods to the market which placed with Government departments. proved their worth and efficiency in succes- b) Members of the Syndicate receive a sive operations. The careful drawing up of commission of 1 per cent on the value of an issuing programme by means of timely bonds placed by them during the subscripconsultations with the banks and financial tion period. They may subscribe to bonds houses having the largest placing power; the for their own portfolio but do not receive selection of the most suitable type of bond; any additional commission by reason of such the vigilance and timely intervention on the subscriptions. It is therefore merely a placmarket in support of the bonds, and the ade- ing Syndicate and its members are not called quate advertising to interest investors so that upon to underwrite the issues. Underwriting the issue aimed at could be launched whole- by the banks—for which they are usually sale, offering banks and brokers the commis- remunerated with a higher commission than sions necessary to encourage placing; such that paid for placing only—plays an imwere the outstanding features of previous portant part when, because of the size of the experience which the Central Bank did not issue concerned, there is a danger that part fail to examine closely when, in the exercise of it will not be absorbed by the investing of the duties assigned to it by law, it had to public. But in the case of the National Govorganize and manage the Syndicate for plac- ernment and given normal conditions undering national securities. writing can be dispensed with for the fol- The basic features of the Syndicate formed lowing reasons: in the first place, the Treasfor the bond issue which is under considera- ury selects the most opportune moment to tion were communicated to the banks and issue its bonds and in the meantime relies for financial houses of the Federal Capital and its immediate needs on the resources of the the interior interested in participating regu- short-term market—in which the banks and larly in the placing of national securities, as financial houses also usually participate—and well as to broking groups on the Buenos Aires ultimately can also resort to the advances and Rosario Stock Exchanges. Once these which the Central Bank Law authorizes the basic conditions had been accepted, the Na- Central Bank to make to the Treasury; furtional Government issued the corresponding ther, the practice introduced by the Syndicate decree constituting the Syndicate for the op- of not launching the whole of the projected erations to be effected in 1939. The following bond issue at once, only announcing the issue were the principal provisions, apart from of half or part of it and afterwards launching various technical details in regard to which the rest if the first part is oversubscribed, the Syndicate functioned in accordance with makes possible the prudent policy of not placthe terms of the decree: ing a strain on the market or taking needa) The National Treasury undertakes to less risks. effect all bond placing operations through the c) Members of the Syndicate are respon- Syndicate for the period of one year. Suc- sible for unsound placings and for bonds cess in these operations naturally depends to placed with weak holders. If such bonds are a considerable extent on the constant touch sold immediately sacrificing part of the comof the members of the Syndicate with the in- mission collected and are offered at rates bevestors, it is therefore logical that they should low the subscription price, the Central Bank be given the opportunity of reaping the re- is empowered to buy them in the market and ward of their efforts in the successive opera- return them to the member responsible for tions undertaken by the National Govern- placing them who is charged with the differment, all the more so as membership of the ence in price and expenses. This provision Syndicate is open at all times to entities which tends to ensure that the bonds are genuinely accept its basic conditions. This provision placed with the investing public or held for a does not, of course, apply to bonds acquired reasonable time in the portfolios of investing before, during or after issues for the purpose institutions, thus preventing temporary inof regulating the market and which the Cen- vestments which might be made for the sole JULY 1940 671 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Banking Laws and Reports purpose of the placing commission. How- a sinking fund of 2*4 Per cent instead of ever, it is but logical that a provision of this the 36 and 41 years of previous issues bearing kind should only remain in force for a limited the same rate of interest, but with a sinking period which has been fixed at one and a half fund of 1 per cent. The feature of redempmonths for the investing public and three tion by drawings at par, which some investors months for members of the Syndicate. prefer, was also introduced in this case, all In the management of the Syndicate the this with the purpose of providing greater Central Bank is assisted by an Advisory diversity as mentioned above. Board consisting of six banks and financial As stated at the beginning of this chapter, houses operating in the market and a repre- the first 75,000,000 pesos were immediately sentative of the Buenos Aires Stock Ex- oversubscribed, the 25,000,000 pesos in the change. This Board, which is thus composed new four per cents on the opening day and of persons with wide experience of the stock the 50,000,000 pesos in 4*4 per cent bonds market, is consulted in each case regarding on the second day. It was then decided to market conditions, the type of bond to be launch the other 75,000,000 pesos which had launched and the issue price, and its views been duly authorized and which were also are communicated to the National Ministry easily covered. of Finance which then takes the requisite The cost of this loan to the National Treasdecision. ury amounted to 1.20 per cent of the 150,- The two bond issues.—The Syndicate hav- 000,000 pesos issued, of which 1 per cent coring been formed under the conditions de- responds to placing commissions, 0.10 per scribed above, on March 6 the aforementioned cent to the Central Bank's commission and 75,000,000 peso bond issue was launched, 0.10 per cent to advertising and organizing of which 50,000,000 pesos was in bonds bear- expenses. ing 4V& per cent interest and 2*4 per cent The second bond issue of the year was amortization and 25,000,000 pesos in 10-year made on December 4 under most favorable bonds bearing 4 per cent interest and 8*4 per market conditions. The bonds offered for cent amortization. In introducing this new subscription, their total nominal value and type of bond to the market the National Min- the division of the issue into two parts were istry of Finance explained the aims which all identical to the former operation. Subit had in view: on the one hand and for scriptions, however, were even more rapid financial reasons it was considered advisable than on the previous occasion, the applicato issue a rapidly redeemable bond in view tions received during the first day being in of the slow amortization of the long-term excess of the first half of the issue which had issues floated previously, and, on the other, been offered and also of the second half which it was desired to diversify the types of na- was yet to be offered, for which reason the tional bond. As regards short-term paper, lists for the full amount of 150,000,000 pesos Treasury Bills were already in existence and were immediately closed. constantly becoming more popular, while The cost of this, the Syndicate's second long-term bonds were also in circulation, but operation, amounted to 1.18 per cent of the the market lacked a medium-term security total issue, comprising the following items: which, without being of short maturity and 1 per cent for placing commissions, 0.10 per consequently subject to early redemption and cent for the Central Bank's commission and yielding a low rate of interest, should also 0.08 per cent for advertising and organizing be free from the fluctuations which varying expenses. market conditions cause in the value of When the issue price of the new bonds in slowly amortizable bonds. It is true that, by the Syndicate's first operation was being conway of compensation, these bonds yield a high sidered, it was deemed advisable to offer rate of interest but there are some types of in- investors attractive terms as the bonds emvestors who prefer a lower yield in return for bodied certain novel features referred to greater stability in the value of their holdings above. Thus it was that the 25-year bonds resulting from an earlier maturity. These were offered at 92.80 per cent and the shortrequirements are fulfilled by medium-term se- term ones at 90.30 per cent. As soon as these curities, the issue of which has begun with bonds were quoted on the Stock Exchange the ten-year bonds mentioned above. it was seen that those new features had been As regards the 4% per cent bonds, their well received by the public, so much so that life was also shortened to 25 years, due to the firmness in demand shortly brought about 672 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Banking Laws and Reports SL rise in prices. In the case of the secondstability. To launch no more bonds than the loan, it was therefore possible to adjust the market can reasonably absorb is the guiding issue price to the market value of the bonds principle, easy to express but difficult to apply of the earlier loan, making due allowance for in practice when the requirements and purthe time which had elapsed since the former poses of several issuers enter into competition issue. In this way the issue price was fixed at a given moment and the total volume of at 94 per cent for the 4*/2 per cent bonds and the proposed issues is in excess of what the at 92 per cent for the four per cents. market can take. In the case of bonds there Other placings.—In addition to the Na- is no spontaneous means of regulation as is tional bonds to the value of 300,000,000 pesos available in the prices of goods. When prices placed in 1939 through the Syndicate, a fur- fall, demand and consumption are stimulated ther 16,800,000 pesos in bonds were negoti- and new buyers appear. But in the case of ated directly by the Central Bank on the bonds, the drop in quotations produced by Stock Exchange before the Syndicate's first excessive issues brings a lack of confidence, operation, while bonds sold to various Govthe number of sellers increases due to the ernment entities in dealings which were exfear of further declines and investors withcluded from the Syndicate aggregated 22,draw from the market which becomes de- 700,000 pesos. The total volume of National moralized, and demand recovers very slowly bonds placed during the year thus reached once the impression caused by the decline the considerable figure of 339,500,000 pesos. fades and after investors forget their losses The above figures do not include the puron securities purchased earlier. This explains chases and sales of securities effected by the the desirability of regulating the supply of Central Bank to regulate the market which bonds before harm is done both to those who amounted in all to 126,900,000 pesos. issue and to those who invest their savings Apart from these operations for the acin National securities. count of the National Treasury, the Central Short-term paper.—Treasury Bills.—The Bank carried out exchanges of bonds belong- Bank has continued to place Treasury Bills ing to Government entities for 22,800,000 for the account of the National Government. pesos and sold for their account bonds for In the previous Report the importance, from 22,500,000 pesos. the monetary standpoint, of placing these Price movements.—Prices of National Bills with financial houses and members of bonds have undergone the usual and normal the public rather than with the banks was fluctuations. Apart from the intensive instressed, and it was mentioned that the tervention in the market on the outbreak of amount so placed had risen from 59,000,000 war, the regulatory operations engaged in by pesos at the end of 1937 to 85,000,000 pesos the Bank have been effected in connection at the close of 1938, while the total of bills with the issue of bonds or to prevent abrupt in circulation had dropped during that time fluctuations, but they have not aimed at opposing natural market tendencies and move- from 150,000,000 pesos to 145,000,000 pesos. ments. However, at the end of 1939 the bills placed with financial houses and members of the As stated elsewhere, those usual Stock Exchange, fluctuations are not incompatible public—notwithstanding the fact that 22 new with the idea of a stable market. In this firms tendered during the year—remain at respect, stability should not be confused with about the same figure of the previous year, rigidity. A stable market is not usually ex- namely 102,000,000 pesos, whereas the total posed to sudden surprises or to nervous flur- of bills in circulation has increased to 194,ries; sellers can always find buyers without 000,000 pesos. This is partly explained by forcing the market; prices fluctuate from day the tendency observed in some cases to invest to day but only to a moderate extent, which temporary balances in long-term bonds indoes not interfere with the development of stead of in the corresponding short-term the characteristic upward or downward paper. That tendency is assuredly not a movements which reflect the changes in the healthy one and it is to be hoped that banks technical conditions of the market and in the and stockbrokers, as the natural advisers general economic situation. of their clients, will seek to bring about a In this respect, moderation in the issue more correct employment of available funds of bonds is an essential factor in preserving in the various classes of Government security. JULY 1940 673 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Banking Laws and Reports Of the 194,000,000 pesos of Treasury Bills eign Exchange Holding Certificates has conin circulation, 7,500,000 pesos correspond to tinued to decline as noted in the previous Yacimientos Petroliferos Fiscales bills and year. The joint figure which at the end of 64,000,000 pesos to Bills arising from the 1938 stood at 312,400,000 pesos fell to 111,- Debt Repatriation of 1937. The remainder, 000,000 pesos on September 2, 1939, as a 122,500,000 pesos, is due to ordinary Treas- consequence of the decline in gold and forury requirements. The Treasury, as a con- eign exchange holdings but it has since risen sequence of the loans floated shortly before, again and stood at 192,500,000 pesos at the had at its disposal at the close of the year close of the year. sufficient cash resources, in excess of its immediate needs, to enable it to cancel an OTHER ACTIVITIES OF THE BANK Exchange operations.—As stated in the appreciable part of the bills in circulation. introductory chapter of this Report, the war Nevertheless, it was considered advisable interrupted the trend thus far followed by to invest those funds temporarily in gold the exchange market. During the first eight and foreign exchange to avoid the creamonths of the year our international accounts tion of fresh funds by the Central Bank showed a deficit for while exports were low, through the process described in previous due chiefly to the slowness of wheat ship- Reports, and at the same time to prevent a ments, imports remained at a comparatively decrease in short-term paper from accentuhigh level. The Bank was forced to make use ating the tendency towards investment in of its reserves to support the peso and in this bonds mentioned above. way a very considerable portion of the gold Short-term foreign bills.—The bills disholdings previously acquired by the Exchange counted by the National Treasury in May Fund were absorbed. To relieve the pressure 1938 in the Zurich and Amsterdam markets on the free market, the National Ministry of for a nominal value of 40,000,000 Swiss Finance decided, on August 21, to transfer to francs and 12,500,000 florins, respectively, the official market the imports which had up were renewed in accordance with the proto then been paid for through the free marvisions of the corresponding contracts. ket,5 at the same time establishing for these It also fell to the Bank, acting on inimports a new selling rate of 20 pesos to the structions received from the National Minpound; some time before the prior permit istry of Finance, to participate in the issue system had been applied to these operations of dollar Treasury Bills up to a total of which were thus brought under Government 9,500,000 dollars authorized by a National control. Meanwhile, in the official market Government decree of May 26, 1939. the restrictions imposed from the beginning The said decree was issued for the purof the year on the import of automobiles and pose of loosening the restrictions imposed, textiles were followed by a more severe limifor exchange reasons, on the import of autotation of imports of numerous articles once mobiles from the United States. Importers it became clear that the deficit in the balance were allowed to bring in an additional 35 of payments persisted and was being accenper cent of the value imported in 1938, so tuated due to the adverse flow of funds. that, in all, imports could reach 70 per cent The last four months of the year, which of the total for that year. These Bills bear interest at the rate of 2V& Per cent per annum might be termed a transitional period, present a different picture. Although imports payable at maturity and will be redeemed by continue at a high level, the payment in adthe Argentine Government in instalments of vance of a considerable volume of our exports 25 per cent, 25 per cent, and 50 per cent, one, soon produced a surplus sufficient to enable two, and three years respectively after the the Exchange Fund to recoup the previous date of issue. severe drain on its resources. The flow of Up to December 31, 1939, the nominal funds took a favorable turn in September and value of the Bills issued amounted to 7,300,- October and maintained an even balance dur- 000 dollars. ing the last two months of the year; the Central Bank Certificates.—The fort- Central Bank resumed its foreign gold purnightly tenders for Certificates of Particichases ; the new exchange rate of 20 pesos to pation in Consolidated Treasury Bonds have continued as usual. The circulation both of these Certificates and of Gold and For-5 These imports, at the selling rate of 17 pesos to the pound, amounted to about 300,000,000 pesos. 674 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Banking Laws and Reports the pound concluded its brief career as will QUOTATIONS OF THE POUND AND THE DOLLAR be explained later, and the Government grad- Dollars Logarithmic scale ually relaxed the restrictions on imports which, by virtue of the clearing agreements, 5.00 NEW YORK -—one pound accentuated their selective character. 4.50 However, these first signs do not justify any generalization regarding 1940, and the 4.00 21 problems to be faced as the year opens—as noted in another chapter—render advisable 3.50 None pound—* 19 / a prudent attitude of alertness suitable to BUENOS AIRES 17 Peso (Free market) abnormal times. / Exchange rates.—Mention has already 450 - — 100 dollars / been made of how the rate of 13.50 pesos to the pound was fixed on September 22 for 400 the purchase of exchange in the official mar- 350 II l i lt I 1 1 1 1 ket. The peso rate for 100 U. S. dollars, J. F. M A. M J. 3. A. S. O. N. D. 1939 which had reached 357.15 pesos a few days before, thereupon dropped to 335.82 pesos, the free; each of them functions separately in harmony with the London-New York and is used for widely different purposes, as rate of 4.02 U. S. dollars to the pound; provided by the respective regulations. It before the outbreak of war the quotation had is not surprising, therefore, that in our free been about 320.45 pesos. The selling rates market the pound can drop below the official were also changed. A new rate of 15 pesos market rate of 17 pesos; for example: if 100 to the pound was established for the importa- U. S. dollars are quoted at 436.60 in our martion of important classes of foreign goods ket and the pound sterling is worth 3.99 which, as was explained at the time, have an dollars in New York, the local sterling rate appreciable effect on general consumption must necessarily be 17.42 pesos; but, if the and industrial or building activity. For im- pound drops to 3.85 in New York and the ports outside these classes, including those Buenos Aires dollar rate remains unchanged, formerly paid for through the free market the pound will automatically fall to 16.81 and for which the rate of 20 pesos to the pesos in our free market, even though in the pound had been established, exchange was official market the two currencies remain now granted at 17 pesos to the pound. linked at 4.02. After the fall of sterling on August 25 pur- In regard to exchange rates it should also chases of pounds in the official market were be stressed that in order to facilitate overseas first reduced and later suspended until the sales by the Grain Regulating Board and the conclusion of the agreement referred to above National Meat Board they were several times with the British monetary authorities, when guaranteed the buying rate of the day on they were resumed in mid-October at the new which they made their application to the rate of 13.50 pesos to the pound. Central Bank. In this way they were enabled In so far as the free market is concerned, to face the protracted negotiations which there was one event which merits explana- characterized some of these transactions tion. Whereas the dollar rate, once the first without running the risk of exchange losses. days of the war had passed, remained at Exchange Commission.—The Bank, very much the same level as in previous through the representative to whom it is enmonths, the pound which had been fluctu- titled by law, has taken an active part in the ating around 20.25 pesos fell rapidly and was work of the Exchange Commission. quoted even at less than 17 pesos, the official As is generally known, exchange permits market maximum selling rate, until the are granted by the Exchange Control Office, middle of December. The explanation of this which is under the authority of the National is quite simple. In the free market the ster- Ministry of Finance. The Exchange Comling rate has been greatly influenced by the mission performs a different function: it retrend of the free pound in the New York ceives complaints from importers and reports market, as can be plainly seen in the ap- thereon to the Ministry, and acts in an adpended chart. There are now two pounds visory capacity in the drawing up of regulajust as there are two pesos: the official and ions for the granting of permits. JULY 1940 675 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Banking Laws and Reports Custody of gold.—In view of several re- that under those agreements the banks and quests and enquiries from abroad and of the other firms dealing in exchange should still advantage which might accrue therefrom to be allowed to employ their own correspondthis country, the Central Bank decided to ents so that all could continue to participate accept deposits of gold in custody for foreign in the exchange business as heretofore. holders. To do this it was first necessary to Exchange guarantee for exporters.—The ensure the free export of such gold at all facilities afforded by the exchange market for times which objective was attained by a Na- selling exchange either spot or forward orditional Government decree dated April 26, narily allow exporters to cover themselves 1939. against the risk of possible fluctuations in the Up to December 31 there had been received official buying rate. Nevertheless, when sales on deposit 653 bars of gold with a content of of goods are effected after the closing of the 260,006.399 fine ounces and value of 38,700,- exchange market or when business is done on 000 pesos. the basis of firm offers cabled abroad on the Participation of the banks in exchange previous night, exporters are obliged to run operations.—During the course of the nego- an exchange risk for a few hours, because, tiations which led up to the exchange agree- as is well known, the Central Bank, through ments with Great Britain and France, the the other banks, purchases the exchange of- Central Banks of both these countries pro- fered to it in the official market at the buying posed that all payments and collections to be rate ruling at the moment when the purchase made in their territory under the agreements is made. should be effected through central accounts In order to eliminate this risk a form of which they would open in their books in the exchange insurance was established of which name of this Central Bank. exporters may make use after the market The procedure suggested, which at first closes and which covers them until noon on was thought essential in order to make pos- the following day. sible the supervision required by clearing Advances to National Government.—On accounts, gave to the Central Bank a virtual December 31,1938, the advances made by the monopoly of exchange operations. However, Bank to the National Government stood at bearing in mind that the object of the Bank is 50,000,000 pesos. The proceeds of the first not to earn profits in the market by competing bond issue floated in March last allowed the with the other banks and at the expense of Treasury to pay off the whole of this debt. their ordinary business but rather to regulate During the remainder of the year there was the market, it was found possible to arrange no further resort to this form of credit. BALANCE SHEET OF THE CENTRAL BANK OF THE ARGENTINE REPUBLIC AS OF DECEMBER 31,1939 AND 1938 [In thousands of pesos] Assets Dec 1 . 9 39 31, De 1 c. 9 38 31, Liabilities Dec 1 . 9 39 31, Dec 1 . 9 38 31, Gold at home 1,224,418 1, 224,418 Notes in circulation 1,191,147 1,117,957 G G o o l l d d a a b t r h o o a m d e a , n e d x t f e o n re s i i g o n n e o x f c E h x a c n h g a e nge Fund \ 171,235 71,351 B N a a n ti k o n d a e l p G os o it v s ernment deposits 4 1 2 7 7 5 , ,4 7 6 8 9 9 3 1 2 0 0 9 , , 7 5 0 8 6 4 Foreign exchange bought forward _. 13,880 18, 384 Other deposits 6,679 914 Subsidiary currency 1,363 2,198 Foreign exchange sold forward 13,880 18, 384 Non-interest bearing Government bonds 118,884 118,884 Capital.... 20,000 20,000 Consolidated Treasury bonds 395,816 396, 909 General reserve fund 5,446 National securities, Article 34, Law 12,155 45,618 Special reserve for Consolidated Bonds 12, 500 4,558 Bank premises 0) 0) S pecial reserve for contingencies 2,500 Temporary advances to National Government, Contingency and enlargement of premises re- 1~566 Art. 44, Law 12, 155 50, 255 serve .__ __ 1,500 Other assets 11, 762 5,603 Certificates' of participation in Consolidated 2,500 Treasury Bonds , 114, 950 302, 350 Total assets.. 1,982,976 1,916,941 Profit and loss account „__ ._ 5,304 5,184 Other liabilities 5,811 13, 304 Total liabilities 1, 982, 976 1, 916,941 [Per cent] [Per cent] Ratio of total gold and foreign exchange to: Notes in circulation 117.17 115.90 Notes in circulation and demand liabilities (Art. 39, Law 12, 155) 77.45 83.60 * Entered at the nominal figure of 1 peso. 676 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Canadian financial Me Glut el On April 30, 1940, a Canadian Order in Canada of its obligation to maintain a mini- Council was announced which authorized the mum reserve of gold or foreign exchange. Minister of Finance to issue and sell to the The texts of the first Order in Council re- Bank of Canada securities to an amount not ferred to above and of the Exchange Fund exceeding $325,000,000. The preamble ex- Order—1940 are given below; these measures plained that the proceeds were to be devoted were further implemented by the Foreign to acquiring for the account of the Foreign Exchange Acquisition Order, dated April 30, Exchange Control Board gold held by the and effective May 1, which required Cana- Bank of Canada and foreign exchange held dian residents to sell to the agents of the Conby Canadian residents. A supplementary trol Board by May 31 all their holdings of Order entitled "The Exchange Fund Order— foreign exchange (with certain exceptions 1940", issued on the same day and effective designed to minimize interference with Cana- May 1, contained a description of the securi- dian foreign trade). ties to be issued, consisting of $250,000,000 One Year 1 per cent Treasury Notes and ORDER IN COUNCIL AUTHORIZING THE ISSUE AND SALE TO THE BANK OF CANADA OF $325,000,000 OF TREASURY SECURITIES $75,000,000 Treasury Bills with short-term P. C. 1734 serial maturities, and stipulated that they should be sold to the Bank at par and accrued WHEREAS the Minister of Finance reports that for the purpose of the more effective operation of The interest in the case of the Notes, and at a dis- Exchange Fund Act (Ch. 60, Statutes of Canada 1935) and the Foreign Exchange Control Order, he count giving an effective yield of about % is of opinion that there is need at this time, as a per cent per annum in the case of the Bills. measure for the security, defence, peace, order and welfare of Canada, to place at the disposal of the The Order further provided that the proceeds Foreign Exchange Control Board gold held in unreof these sales should be credited to the ac- stricted ownership by the Bank of Canada together with foreign exchange held by residents of Canada; count with the Bank of Canada of the Foreign That to enable the Board to acquire the gold and Exchange Control Board, and that the latter foreign exchange above mentioned, it will be necesshould before May 31, 1940, apply such por- sary to increase the funds at the credit of the special account established pursuant to section 4 of The tion of these funds as was required to the Exchange Fund Act; acquisition from the Bank of Canada of the That he is further of the opinion that funds for the above mentioned purpose can best be provided by latter's entire gold stocks at the current the issue and sale to the Bank of Canada of semarket price. This transfer was actually ef- curities of Canada; and That the Bank of Canada has indicated its willingfected on May 1, 1940, involving approxi- ness to purchase such securities and to sell gold and mately 5,888,565 fine ounces of gold valued foreign exchange held by it. AND WHEREAS by The Loan Act, 1939, the Govat about $225,773,000 (Canadian). Since the ernor in Council was authorized to raise by way of passage of the Exchange Fund Act in July loan under the provisions of The Consolidated Revenue and Audit Act, 1931, by the issue and sale or 1935,1 the Bank has carried its gold holdings pledge of securities of Canada, such sum or sums of at their "current market price," defined in money as may be required, not to exceed in the whole the sum of $750,000,000 for paying or redeeming the the Act to be the amount of Canadian funds whole or any portion of loans or obligations of Canrealizable from the sale of gold in London or ada, and also for purchasing and withdrawing from circulation from time to time unmatured securities New York, and has credited to the Exchange of Canada and for public works and general purposes, Fund any increase in the value of such hold- and that of the amount so authorized to be raised there remains authority to raise by way of loan the ings as a result of changes in the market price sum of $345,756,445.76. of gold; thus no further adjustment was Now THEREFORE His Excellency the Administrator in Council, for the above mentioned purposes, is necessary on this occasion. hereby pleased to authorize the Minister of Finance Finally, the Order relieved the Bank of to raise by way of loan a sum not exceeding $325,000,- 000 and to direct that securities of Canada to an amount not exceeding $325,000,000 be issued and sold 1 See Annual Report of Bank of Canada for 1935, BULLETIN for to the Bank of Canada for that purpose. April 1936, pp. 256-259. JULY 1940 677 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Banking Laws and Reports His Excellency the Administrator in Council, on authorized to sell the said Treasury Bills to the the recommendation of the Minister of Finance and Bank of Canada at a discount equivalent to a yield under and in virtue of the powers conferred by The of 0.739 per centum per annum; Loan Act, 1939, and The War Measures Act (Ch. (e) The said Notes and Treasury Bills shall be 206, Revised Statutes of Canada 1927) and other- signed by the Deputy Minister of Finance and counwise, is pleased to make and doth hereby make the tersigned by D. G. Marble or L. P. J. Roy or M. G. Order attached hereto under the title of "The Ex- Anderson, officers of the Bank of Canada; change Fund Order, 1940". (f) Pursuant to the provisions of Section 7 of The Consolidated Revenue and Audit Act, 1931, the ex- (Sgd) A. D. P. HEENEY Clerk of the Privy Council. penses in connection with the issue and sale of said Notes and Treasury Bills shall be paid out of the At the Government House at Ottawa Consolidated Revenue Fund. Tuesday, the 30 th day of April, 1940. 2. The proceeds of the sale of the aforementioned securities to the Bank of Canada shall be credited by the Bank of Canada to the special account in the THE EXCHANGE FUND ORDER, 1940 name of the Minister of Finance established pur- 1. (a) There shall be issued and sold, under the au- suant to section 4 of The Exchange Fund Act and thority of The Loan Act, 1939, at par and accrued shall form part of the said special account for all interest, $250,000,000 principal amount of One Year the purposes of The Exchange Fund Act and of the 1% Notes, for the purpose of providing funds for Foreign Exchange Control Order. the purchase by the Foreign Exchange Control Board 3. Subject to the provisions of The Exchange Fund of gold held in unrestricted ownership by the Bank of Act and of the Foreign Exchange Control Order, the Canada and of foreign exchange required to be sold Foreign Exchange Control Board shall not later by residents of Canada and for the purposes generally than May 31, 1940, purchase from the Bank of of The Exchange Fund Act (Chapter 60 of the Stat- Canada and the Bank of Canada shall sell to the utes of Canada, 1935) and of the Foreign Exchange Foreign Exchange Control Board all gold held in Control Order, P. C. 2716 of September 15th, 1939, unrestricted ownership by the Bank of Canada at as amended; said Notes to be dated May 1, 1940, and the current market price (as defined by Section 2 to mature May 1, 1941, and to bear interest at the of The Exchange Fund Act). rate of one per centum per annum payable semi- 4. Interest on the sum of $325,000,000 shall be annually, November 1 and May 1; paid at the end of each quarter year by the Foreign (b) The said Notes shall be in the form attached Exchange Control Board from moneys in the said hereto and the Minister of Finance is authorized to special account to the Receiver General of Canada sell the said Notes at par and accrued interest to the and placed to the credit of the Consolidated Revenue Bank of Canada; Fund; such interest shall be calculated at such rate (c) There shall be issued and sold, under the au- per annum as is the equivalent of the average tender thority of The Loan Act, 1939, Treasury Bills to rate for all Treasury Bills issued during the quarter the amount of $75,000,000 for the purposes above year; the first payment of interest shall be made on mentioned, at a discount equivalent to a yield of June 30,1940, and thereafter payments shall be made 0.739 per centum per annum, the said Treasury at the end of each quarter. Bills to be dated May 1, 1940, and to mature as 5. Notwithstanding anything contained in section follows: 26 of the Bank of Canada Act, the Bank of Canada As to an amount of $15,000,000 on May 15, 1940 shall not while this order is in force be obliged or As to a further amount of $15,000,000 on May 31 required to maintain any minimum or fixed reserve As to a further amount of $15,000,000 on June 14 ratio of gold or foreign exchange. As to a further amount of $10,000,000 on July 3 6. The form of Schedule C to the Bank of Canada As to a further amount of $10,000,000 on July 16 Act is amended by deleting the statement of the As to the remaining amount of $10,000,000, on ratio of net reserve to notes and deposit liabilities. August 1, 1940. 7. This order may be cited as The Exchange Fund (d) The said Treasury Bills shall be in the form Order, 1940, and shall come into force on May 1, attached hereto and the Minister of Finance is 1940. 678 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A/ational Summaty of} HulineM Condition* Compiled June 17 and released for publication June 19. Later developments are discussed on pages 637-638 of this BULLETIN. I NDUSTRIAL activity increased consider- In the woolen textile industry activity in ably in May and the first half of June, May rose sharply from the low level reached while prices of commodities and securities in April. At cotton mills activity was maindeclined sharply in the middle of May andtained at about the rate prevailing in March fluctuated near the lower levels after that and April and was somewhat lower than in time. Distribution of commodities to con- the early months of the year. Rayon producsumers was maintained at levels prevailing tion continued large, while mill takings of earlier this year. raw silk declined to the lowest level in nearly twenty years. In other industries producing Production nondurable manufactures activity generally Volume of industrial production increased showed little change from April to May. in May and the Board's seasonally adjusted Coal production in May continued at a high index advanced from 102 to 105. The rise level for this time of the year, reflecting in in May reflected chiefly sharp increases in part increased exports and unusually large activity at steel mills and woolen mills. Steel shipments of coal to Upper Lake ports. Iron production in May was at about 71 per cent ore shipments down the Lakes were also large of capacity, as compared with 60 in April, for this season. Petroleum production in and by the third week of June activity had May declined somewhat from the high rate risen further to 88 per cent. Lumber produc- maintained in March and April. tion also increased. In the automobile indus- Value of construction contract awards intry, where output had been at a high rate in creased further in May, according to figures the first four months of the year, dealers' of the F. W. Dodge Corporation, reflecting stocks were in large volume and production principally continued growth of private buildwas curtailed in May and the first half of ing. Private residential contracts rose to the June. Retail sales of automobiles continued highest level in the past 10 years. Awards at a high level during most of May, although for commercial buildings advanced somewhat in the middle of the month a temporary sharp further while those for factory construction reduction was reported. CONSTRUCTION CONTRACTS AWARDED MILLIONS OF DOLLARS MILLIONS OF DOLLARS INDUSTRIAL PRODUCTION 5001 1 1 1 1 1 1 PER CENT PER CENT 140 140 H400 130 A 120 / 7 120 300 300 110 , / 110 \ r 100 / I V 100 200 90 A / \J 80 100 70 70 60 60 1934 1935 1936 1937 1938 1939 1940 1934 1935 1936 1937 1938 1939 1940 Three-month moving averages of F. W. Dodge data for value of contracts awarded in 37 Eastern States, adjusted for seasonal Index of physical volume of production, adjusted for seasonal variation. Latest figures based on data for April and May and variation, 1923-1925 average = 100. estimate for June. JULY 1940 679 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

National Summary of Business Conditions continued at about the level reached in April. York City banks, while loans to security Both were considerably larger than a year brokers and dealers declined considerably. ago. Contracts for public construction in- Deposits and reserves of member banks concreased slightly in May but were about one- tinued to increase sharply as a result mainly sixth lower than a year earlier. of heavy gold imports. Distribution MEMBER BANKS IN 101 LEADING CITIES Department store sales in May declined BILLIONS OF DOLLARS IONS OF DOLLARS from the level prevailing in the past three 12 12 months, while sales at variety stores and mailorder houses were largely maintained at earlier levels. In the first week of June department store sales increased considerably. Volume of railroad freight traffic increased in May, reflecting larger shipments of miscellaneous merchandise, coal, and forest products. Loadings of grains declined. Foreign Trade Total exports of United States merchandise 1935 1936 1937 1938 1939 1940 showed little change from April to May. Increases were reported in shipments to Can- Wednesday figures for reporting member banks in 101 leading ada and Australia and to Italy and Finland, cities, September 5, 1934, to June 19, 1940. Commercial loans, which include industrial and agricultural loans, represent prior while exports to other European nations to May 19, 1937, so-called "Other loans" as then reported. showed declines. Exports of industrial machinery in May declined somewhat from the Government Security Market high level reached in April, while exports of Prices of Government securities held relasteel, copper, chemicals, and commercial tively steady during the latter part of May vehicles increased, following declines in the and the first part of June, after a reaction at previous month. Coal shipments, largely to the time of the invasion of Belgium and Hol- Canada, rose to the highest level in recent land. Subsequently prices increased sharply, years. Cotton exports continued to decline and on June 15 the yield on the 1960-1965 from the high level of last winter. bonds was 2.40 per cent, compared with 2.52 The monetary gold stock of the United per cent on June 10 and 2.26 per cent at this States increased by $439,000,000 in May and year's peak in prices on April 2. by $250,000,000 in the first two weeks of June. Commodity Prices MONEY RATES IN NEW YORK CITY Following a general decline in basic commodity prices around the middle of May, prices of industrial materials, particularly steel scrap, zinc, tin, and wool, advanced and by the middle of June were in some instances above the levels of early May. Raw cotton prices also increased, and in the second week of June prices of cotton gray goods likewise advanced as sales of these goods were in exceptionally large volume. Prices of a number of foodstuffs continued to decline. Bank Credit 1934 1935 1936 1938 1939 1940 Total loans and investments at reporting member banks in 101 leading cities showed Minimum rate on rediscounts for and advances to member little net change during the four weeks end- banks by Federal Reserve Bank; weekly averages of daily yields of 3- to 5-year Treasury notes and Treasury bonds callable after ing June 5. Holdings of United States Gov- 12 years, and average discount on new issues of 91-day Treasury ernment obligations increased further at New bills offered within week. For weeks ending January 6, 1934, to June 22, 1940. 680 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 683 Federal Reserve Bank discount rates; rates on time deposits, reserve requirements 684 Federal Reserve Bank statistics 685-689 Reserve position of member banks; deposits in larger and smaller centers... 690 Money in circulation 691 Gold stock and gold movements; bank suspensions; bank debits 692 All banks in the United States, number, deposits, loans and investments 693 Condition of all member banks 694-695 Weekly reporting member banks 696-699 Commercial paper, bankers' acceptances, and brokers' balances 700 Money rates and bond yields 701 Security markets . . 702 Treasury finance 703-704 Governmental corporations and credit agencies; Postal Savings System 705-706 Production, employment, and trade 707-715 Wholesale prices 716 Statistics for Federal Reserve chart book 717-718 Number of banks and branches in United States, 1933-1939 718 Earnings and expenses of member banks 719-721 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. JULY 1940 681 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MEMBER BANK RESERVES AND RELATED ITEMS BILLIONS OF DOLLARS WEDNESDAY FIGURES BILLIONS OF DOLLARS 20 18 16 14 12 10 4 J TREASURY DEPOSITS AT F. R. BANKS 14 14 12 12 10 10 MEMBER BANK RESERVE BALANCES 1934 1935 1936 1937 1938 1939 1940 Latest figures for June 19. See page 683. 682 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 U. S. Government Treas- ury de- Other balances co B u di i n s l - l t s ed Total sec t w u u M in r i r i t i a t h n i 5 - e - g s t a M u f r t 5 e i a n r - g R c O b r e a e s th e n d r e k i v t r ' e Total s G to o c ld k s r t o c u e i a u u n n r n r t g y c - - d 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 - - B p s w F e o e R a e r r i s n e a t v d i - k h t l e - s s m p N b o d e o e e s m n i - r t - s - c s F o e R e a e r u r c e a d v n - - l - e ts Total c E es x s - J years years Monthly averages of daily figures: 1939—Mar 2,567 1,768 799 2,590 15,014 2,832 6,764 2,720 1,155 519 256 9,021 3,432 2,567 1,736 830 2,593 15,509 2,844 6,867 2,703 1,001 495 256 9,624 3,926 May".""."" 2,564 1,734 830 2,582 15,878 2,856 6,919 2,663 926 557 255 9,997 4,212 1940— 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 18608 2,994 7,532 2,327 554 757 256 12, 703 6,003 May 2,472 1,205 1,267 2,529 18,974 3,004 7,617 2,231 440 879 255 13,086 End of month figures: 1939— 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 2,699 931 545 255 9,900 4,098 May 31— 2,564 1,734 830 2,573 15,957 2,862 6,967 2,636 920 586 253 10,029 4,218 1940—Mar. 30.— 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 May 31 _„_ 2,477 1,206 1,271 2,519 19,209 3,008 7,710 2,198 365 973 253 13, 237 6,385 Wednesday figures: 1939—Aug. 2 2,453 1,623 830 18 2,476 16,248 2,895 7,054 2,370 863 662 257 10,413 4,462 Aug. 9 2,443 1,613 830 15 2,462 16, 270 2,897 7,070 2,354 844 597 256 10,509 4,533 Aug. 16.... 2,423 1,592 830 25 2,453 16, 335 2,900 7,091 2,366 776 565 256 10,633 4,590 Aug. 23..- 2,423 1,592 830 13 2,441 16,501 2,903 7,098 2,334 724 604 256 10.829 4,741 Aug. 30...- 2,426 1,594 832 16 2,448 16,638 2,905 7,141 2,327 709 608 255 10,951 4,799 Sept. 6 2,594 1,667 928 42 2,643 16, 726 2,908 7,261 2,264 676 688 247 11,141 4,969 Sept. 13_... 2,824 1,652 1,171 42 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 51 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 36 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 2,250 469 776 239 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 2,216 349 698 241 11,907 5,509 Oct. 25 2,736 1,517 1,219 30 2,771 17,039 2,929 7,302 2,230 326 692 240 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 33 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 46 2,530 18,063 2,977 7,411 2,385 642 733 249 12,151 5,580 Feb. 21 2,477 1,209 1,268 40 2,523 18,108 2,977 7,450 2,358 596 716 248 12, 241 5,629 Feb. 28 2,477 1,209 1,268 54 2,537 18,166 2,980 7,439 2,374 561 744 248 12, 318 5,689 Mar. 6 2,477 1,209 1,268 35 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 44 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 42 2,520 18, 360 2,989 7.484 2,374 707 791 256 12, 256 5,594 Mar. 27.... 2,475 1,209 1,266 32 2,510 18,413 2,990 7,471 2,382 700 808 12, 294 5,679 Apr. 3 2,467 1,205 1,262 42 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 31 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 45 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 32 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 30 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 38 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 41 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 41 2,520 19,071 3,007 7,613 2,204 370 935 254 13, 223 6,373 May 29 2,477 1,206 1,271 31 2,511 19,162 3,007 7,685 2,200 378 950 253 13, 215 6,362 June 5 2,477 1,206 1,271 50 2,530 19, 281 3,008 7,718 2,205 308 948 253 13, 387 6,533 June 12 2,477 1,206 1,271 43 2,523 19,427 3,009 7,717 2,200 265 1,014 253 13, 510 6,607 June 19 2,473 1,206 1,267 63 2,539 19, 769 3,011 7,741 2,204 298 1,098 266 13, 712 6,767 i Includes industrial advances and bills bought. 2 End of month and Wednesday figures estimated. NOTE.—For description of figuresi n this table and discussion of their significance, see BULLETIN for July 1935, pp. 419-429. Reprints of article together with available back figures, may be obtained upon request from Division of Research and Statistics. Back figures are also shown in Annual Report for 1937 (tables 3 and 4) and for excess reserves in BULLETIN for August 1935, pp. 499-500. Back figures for end of month and Wednesdaydates since January 6, 1937 on maturity distribution of security holdings will be supplied on request. 683 JULY 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 June effect June effect June effect June effect June effect 28 beginning- 28 beginning— 28 beginning- 28 sginning- 28 sginning— Boston 1 Sept. 1, 1939 1 Sept. 1, 1939 Sept. 2, 1937 Sept. 1, 1939 2K Apr. 29, 1938 New York 1 Aug.27, 1937 1 Aug. 27, 1937 Oct. 10, 1935 Aug.25, 1939 3K Feb. 8, 1934 Philadelphia.. Sept.4, 1937 Sept. 4, 1937 Sept. 4, 1937 Sept. 1, 1939 2K Sept 1, 1939 Cleveland May 11, 1935 May 11, 1935 Oct. 19, 1935 Sept. 1, 1939 3K May 11, 1935 Richmond IK Aug.27, 1937 IK Aug. 27, 1937 Sept. 10, 1937 Sept. 1, 1939 k Feb. 19, 1934 Atlanta Sept.16, 1939 Aug. 21, 1937 Aug. 21, 1937 Sept.16, 1939 Apr. 23, 1938 Chicago Sept.1, 1939 IK Aug. 21, 1937 Aug. 21, 1937 Sept. 1, 1939 Oct. 16, 1933 St. Louis. Sept.21, 1939 IK Sept. 2, 1937 Sept. 2, 1937 Sept.16, 1939 Feb. 23, 1935 Minneapolis- IK Aug.24, 1937 IK Aug. 24, 1937 Aug. 24, 1937 K Sept. 1, 1939 4 Oct. 8, 1938 Kansas City__ Sept.16, 1939 Sept. 3, 1937 Sept. 3, 1937 Sept.16, 1939 3 Apr. 16, 1938 D Sa a n ll a F s rancisco S S e e p p t t . . 1 3 6, , 1 1 9 9 3 3 9 7 1)1 A Se u p g t . . 3 3 1, , 1 1 9 9 3 3 7 7 A Se u p g t . . 3 1 1 7 , , 1 1 9 9 3 3 7 7 l IK S S e e p p t t . .1 1 6, , 1 1 9 9 3 3 9 9 2 2 4 K K A Oc p t r . . 1 1 6 9 , , 1 19 9 3 3 3 8 i Two and one-half per cent to lenders other than banks. NOT,E.—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 June 28, 1940, on advances and commitments under Sec. 13b of the Federal Reserve Act Rate in Maturity effect on In g i e n f n fe in c g t — be- Previous [Per cent per annum except as indicated by footnote 3] June 29 rate 1-15 days L_. Oct. 20, 1933 1 Advances to finan- 16-30 days... ...do 1 ing institutions— 31-45 days... _..do 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 0 h 0 i d s d a r a y a y s t s e .. also applies to acceptances bought — . u .. n d d d o o er repurchase agre 1 1 e H - 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 New York on prime bankers' acceptances payable in dollars; higher r r a a t t e e s s a m p a p y ly b t e o p ch u a rc rg h e a d se s fo , r i f o a t n h y e , r m cl a a d s e se b s y o o f th b e il r l s F . ed T e h ra e l s R a e m se e r v m e i B ni a m n u k m s. B N o e s w to Y n ork 3K 4 - - 6 6 4-5 1-2 Back figures.—See Annual Report for 1937 (table 41). Philadelphia.. 4-6 0) K-2 Cleveland 3K 4 Richmond 6 4-6 4-6 1-2 MEMBER BANK RESERVE REQUIREMENTS Atlanta 5-6 5 5 K [Per cent of deposits] C St h . ic L a o g u o i s „ 4-5 5- K 6 0) 3 2 K K 5-6 4 (3) 1-2 1 June 21, Aug. 16, Mar. 1, May 1, Apr. 16, Minneapolis.. 6 4K-5 4^-5 Classes of deposits 1917- 1936- 1937- 1937- 1938- Kansas City.. 4-6 (3) 2 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 K-2 On net demand deposits:1 1 Authorized rate one per cent above prevailing discount rate. C Re e s n e t r r v al e r c e i s t e y rve city__ 1 1 3 0 1 1 9 5 K 2 1 2 7 % K 2 2 6 0 2 1 2 7 % K * 3 M Sa i m ni e m a u s m to c b h o a r r r g o e w o e n r e b -h u a t l f n o o t f o le n s e s p th e a r n c e fo n u t. r per cent. Country 7 10K 14 12 Back figures—See Annual Report for 1937 (table 40). On time deposits: All member banks.__ 3 4K 6 5 MAXIMUM RATES ON TIME DEPOSITS i See footnote to table on p. 690 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 REQUIREMENTS1 [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. 1, 1936- 1937 Oct. 31, and Savings deposits 1937 after Postal savings deposits 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 2K For short sales, under Regulation T (2) 50 90 days to 6 months 2K For loans by banks on stocks, under Regulation U___ 3 55 40 Less than 90 days 2K 1 1 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 2 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. 3 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. 684 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 June 19 June 12 June 5 May 29 May 22 May 15 May 8 May April May Assets Gold certificates on hand and due from XJ. S. Treasury 17, 536,475 17r,,220011,,476 17,053,492 16, 935,473 16,841,976 16,691,975 16,496,977 16,983,476 16,417,976 13,317r,,722 Redemption fund—F. R. notes 11,190 10,490 9,021 7,737 9,087 11,021 9,639 8,547 Other cash 371*023 367,698 348,578 359,026 374,374 378,611 366,076 351,882 381,193 346,667 Total reserves, _ 17, 918, 689 17, 580,364 17,412, 560 17,303, 520 17, 224,087 17,079, 675 16,872,140 17,346,37916,808,80813, 672,936 Bills discounted: For member banks. 2,182 2,407 2,772 3,053 2,317 1,812 1,785 2,815 1, 4,058 For nonmember banks, etc.. 10 10 10 10 10 1,010 1,010 10 1,010 Total bills discounted.. 2,192 2,417 2,782 3,063 2,327 2,822 2,795 2,825 2,704 4,058 Bills bought: Payable in foreign currencies- 561 Industrial advances 9,011 9,085 9,161 9,232 9,292 9,296 ,149 9,357 12,487 U. S. Government securities, direct and guaranteed: Bonds _ _ 1,343,183 1, 346,995 1,346,995 1, 346, 995 1,346, 995 1,344,845 1,337,495 1,346, 995 1,337,495 911,090 Notes 1,130,125 1,130,125 1,130,125 1,130,125 1,130,125 1,129,225 1,129, 225 1,130,125 1,129, 225 1,176,109 Bills 476,816 Total U. S. Government securities, direct and guaranteed 2,473, 308 2,477,120 2,477,120 2,477,120 2, 477,120 2,474,070 2,466, 720 2,477,120 2,466,720 2, 564,015 Other Reserve Bank credit 54,411 34, 387 41, 055 22,150 31, 541 31, 966 28,510 29,855 39,125 -8, 291 Total Reserve Bank credit outstanding 2, 538, 922 2, 523,009 2, 530,045 2, 511,494 2, 520,220 2, 518,150 2, 507, 321 2, 518, 949 2, 517,906 2, 572,830 Liabilities F. R. notes in actual circulation.. 5,103,916 5,081,314 5, 065, 239 5,038,386 4,984,611 4,968, 735 4,954, 783 5,057,064 4,941,165 4,476, 764 Deposits: Member bank—reserve account... 13, 712, 233 13, 510, 111 13,386,697 13, 215,148 13, 222, 502 13,093,67412,877,01713, 236, 76812, 918, 586 101,,029,054 U. S. Treasurer—general account- 298,212 265,424 308,135 377, 749 370,008 424,634 512,185 364,757 446,408 920,325 Foreign bank _ 659,828 455,030 454,181 440,086 449,854 400,930 360,819 428, 380 367,239 284,806 Other deposits 438,487 559,080 494, 321 509,464 484,761 441, 280 544, 764 420,200 301,130 Total deposits.. 15,108, 760 14,789, 645 14, 643,33414, 542,44714, 527,125 14,396,12414,191,30114,574,669 14,152,43311, 535, 315 Ratio of total reserves to deposit and F. R. note liabilities combined (per cent) _ _ 88.5 88.3 8.2 88.4 18.0 85.4 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 3 . 0 31 d a to y s 60 61 d a to y s 90 m 91 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 y t e o e a a r r s 2 5 y y t e e o a a r r s s 5 O y v e e a r rs Bills discounted: • May 29... 3,063 2,081 206 208 136 432 June 5 2,782 1,814 149 196 132 491 June 12 2,417 1,451 87 256 128 495 June 19 2,192 1,117 112 281 235 441 6 Industrial advances: May 29 9,161 1,561 145 634 875 785 1,142 1,907 2,112 June 5 9,088 1,623 588 893 85 780 1,157 1,901 2,061 June 12 _ 9,085 1,621 604 902 102 740 1,154 1,901 2,061 June 19 9,011 2,137 79 881 207 651 1,040 1,930 2,086 U. S. Government securities, direct and guaranteed: May 29 2,477,120 224,796 248,417 732, 608 1, 271, 299 June 5 2,477,120 224,796 248,417 732,608 1,271, 299 June 12 . 2,477,120 224, 796 248,417 732,608 1, 271,299 June 19 2,473, 308 105,974 179,219 188,020 732, 608 1,267,487 JULY 1940 685 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 i l l - a a- C la le n v d e- m Ri o c n h d - la A n t t - a Jhicago L S ou t. is n M o e l a i i n p s - - K C s a i a t n s y - Dallas F c S r is a a c n n o - Assets Gold certificates on hand and due from U. S. Treasury: May 15 16.691,975 904,582 !, 296,724931,442 ,045,053416,052326, 710 , 600,608370,297 263,161358,388 2301,,710 948, 248 May 22 16.841,976 911,7178,411, 417 929,668 ,056,283414,313325, 725 ,634,384369,379 250, 672352,790229,991 955,637 May 29 16,935,473 918, 586" 438,853 899,468 ,079,006418,845324, 787 , 681,546377, 111 252,216350, 567230,386 964,102 June 5 17,053,492 944,878S, 443,951 892,154 , 078,403428,891335,192 , 703, 544814, 654 260,057344,538 232,780 974,446 June 12 17, 201,476 945, 905" 564,048 ,074,736424,201 , 737,809402,440 253,287346>,, 969 235, 660002,227 June 19 17, 536,475 996,048 784,902 919,268 , 100,209423,023 J326,670 , 717,336407, 233 249,454359,299 235,138 017,895 Redemption fund— Federal Reserve notes: May 15 9,089 301 1,253 756 506 1,511 632 544 605 263 736 1,454 May 22 _ 7,737 301 944 756 413 806 480 514 522 594 245 736 1,426 May29_ 9,021 218 944 637 913 1,806 480 514 522 594 245 722 1,426 June 5 10,490 2,179 852 615 851 1,781 454 511 549 228 716 1,385 June 12 11,190 2,117 1,597 519 778 1,187 1,344 495 539 210 705 1,368 June 19 11,191 2,117 1,597 519 778 1,187 332 1,344 495 539 210 705 1,368 Other cash: May 15 378, 611 33,537 109,910 28, 723 25,115 22,837 20, 550 46,994 17,645 8,818 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 May 29 359, 026 31,102 102,456 25, 620 22,943 22, 395 20,334 47,584 17,165 6,982 19,551 13, 763 29,131 June 5 348, 578 29,478 102, 598 24,963 23,490 20,209 17, 767 48,279 16,382 6,296 17,698 13, 792 27, 626 June 12 367, 698 31,002 109,051 26,421 24,867 23, 489 19,729 48,269 16, 777 5,891 19,914 13, 554 28,734 June 19 371,023 31,437 106, 765 29,416 27,354 21,075 18,480 51,884 17,440 5,200 18,855 13,706 29, 411 Total reserves: May 15 17,079,675 938,420 8,407,887 960,921 ,070, 674440,400 347',,788 648,234388,486 272,584378,320246,759 979,202 May 22 17, 224,087 8,524,347 957, 786 , 081, 355 43i6,, 223344,6162,684,444388,047259,194371,173245, 753 986,608 May 29 17,303, 520 8, 542, 253 925, 725 , 102,862443,046 345,601' 729,644394,798259, 792370,363244,871 994,659 June 5 17, 412, 560 976; 535 8, 547,401 917, 732 , 102, 744450,881353,3282, 752, 281431, 54^7 266,902362,464547,288 003,457 June 12 17, 580,364 979,024 8, 674, 696 920, 526 , 100,381448,877 340,668" 787,422419,712 259, 717367,093249,919 032,329 June 19_ 17,918, 6891,029, 602 8,893, 264949,203 , 128,341445,285 345,482 770, 564425,168255,193378, 364249, 549 048, 674 Bills discounted: Secured by U. S. Government obligations, direct and guaranteed: May 15.. 112 200 44 23 120 35 25 15 34 23 May 22 1,093 37 235 61 23 30 35 500 15 34 23 May 29 1,760 722 65 23 60 54 525 115 15 39 June 5 1,450 990 49 23 60 54 80 23 39 38 June 12 1,071 575 59 23 40 54 131 23 39 23 June 19 691 190 51 73 40 54 26 23 44 Other bills discounted: May 15__. 2,142 604 130 119 113 128 140 62 282 331 145 May 22 1,234 16 204 29 37 70 67 120 65 250 305 71 May 29 1,303 16 183 52 37 70 77 10 160 55 264 294 85 June 5 1,332 13 188 29 70 95 10 160 84 287 279 81 June 12 1,316 23 165 65 70 95 10 160 73 297 292 70 June 19 1,501 34 196 47 26 70 137 10 160 125 359 267 70 Total bills discounted: May 15 2,822 112 174 142 233 107 163 165 92 297 365 168 May 22 2,327 53 439 90 60 100 87 35 620 145 265 339 94 May 29 3,063 96 905 117 60 130 101 64 685 170 279 333 123 June 5 2,782 83 1,178 78 59 130 119 64 160 164 310 318 119 June 12 2,417 103 740 124 49 110 119 64 160 204 320 331 93 June 19 2,192 129 99 110 152 64 186 205 311 70 Industrial advances: May 15 9,292 1,192 2,028 2,678 364 907 288 337 179 110 476 673 May 22 9,232 1, 2,028 2,657 363 912 279 338 174 104 476 673 May 29 9,161 1, 2,028 2,614 355 912 269 339 168 104 476 673 June 5 9,088 1,163 2,010 2,588 350 912 267 330 163 102 475 668 June 12 9,085 1,160 2,010 2,580 345 911 259 329 187 102 474 668 June 19 9,011 1,152 2,010 2,570 342 896 251 60 169 95 472 668 U. S. Government securities, direct and guaranteed: Bonds: May 15 1,344,845 98,049 403,476 107,418 137, 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, 75268,663 56,851 147, 369 61,672 40, 510 62,096 51, 835 110,197 May 29 1,346, 995 98,199 404,247 107, 604 137, 752 68, 663 56,851 147,369 61, 672 40,510 62,096 51,835 110,197 June 5 1, 346,995 98,199 404,247 107,604 137, 752 68, 663 56, 851 147, 369 61, 67240, 510 62,096 51,835 110,197 Junel2i 1, 346,995 98,199 404,247 107,604 137, 752 68,663 56,851 147, 369 61,672 40, 510 62,096 51,835 110,197 June 19 . 1, 343,183 97,929 402, 946 107,282 137, 361 56, 708 146, 973 61, 530 40,412 61,949 51, 705 109,893 Notes: May 15 1,129,225 82, 328 338, 786 90,19' 115,482 57, 580 47, 672 123, 557 51, 723 33, 972 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 May 29 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 June 5 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 June 12___ 1,130,125 82,387 339,160 90,279 115, 574 57, 610 47, 699 123, 644 51, 742 33, 52,098 43,490 92, 455 June 19 1,130,125 82,395 339,030 90,267 115, 573 57, 630 47,712 123, 659 51, 769 34, 002 52,123 43, 505 92,460 Total U. S. Government securities, direct and guaranteed: May 15 2,474,070 180,37' 742,262 197,615 253,012126,155104,446 270, 708113,322 74,431114,096 95, 233 202,413 May 22 __ ._ _ 2,477,120 180, 586 743,407 197,883 253,326126, 273104, 550 271, 013113,414 74,497114,194 95, 325 202, 652 May 29 2, 477,120 180,586 743,407 197, 883 253, 326126, 273104, 550 271,013113,414 74,497114,194 95, 325 202,652 June 5 2,477,120 180, 586 743,407 197,883 253,326126, 273104, 550 271, 013113,414 74,497 11"4 , 19495, 325 202, 652 June 12 2,477,120 180, 586 743,407 197,883 253, 326126, 273104,550 271,013113,414 74,497 114t, 19495, 325 202,652 Tune 19 2,473, 308 180,324 741, 976 197, 549 252,934126,125104, 420 270, 632113, 299 74,41 114,072 95, 210 202, 353 686 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 la le 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 r i a s a c n n o - Assets— Continued Total bills and securities: May 15 2,486,184 181, 681 745,094 200,467 253, 518 127,295104,841 271,208 113, 54774, 702 114,,503 96,074 203, 254 May 22 2,488, 679 181,807 745,874 200,630 ~", 749 127, 285104, 916 271,386 114,094 74,816 114,,563 96,140 203,419 May 29 2,489,344 181,845 746,340 200,614 127,315104,920 271,416 114,159 74,835 114;:,577 96,134 203,448 J J u u n n e e 5 12 2 2 , , 4 4 8 8 8 8 , , 9 6 9 2 0 2 1 1 8 8 1 1 , , 8 8 4 3 9 2 7 7 4 4 6 6 , , 1 5 5 9 7 5 2 2 0 0 0 0 , , 5 5 8 4 7 9 2 2 5 5 3 3 , ,,7 7 7 2 3 0 5 1 1 2 2 7 7 , , 2 3 9 1 4 51 10 0 4 4 , , 9 9 3 2 6 8 2 27 7 1 1 , , 4 4 0 0 6 7 1 1 1 1 3 3 , , 6 6 3 3 4 4 7 7 4 4 , , 8 82 8 4 8 111144,!606 9 9 6 6 , , 1 1 3 1 0 8 2 2 0 0 3 3 , , 4 4 1 3 3 9 June 19 2,484, 511 181, 605 744,372 200, 217 253,,3 375 127,131104,823 271,022 113, 54574,788 114:,, 61695,993 203,091 Due from foreign banks: :,549 May 15 47 3 18 5 2 1 1 4 May 22 47 3 18 5 2 1 1 4 May 29 47 3 18 5 2 1 1 4 June 5 47 3 18 5 2 1 1 4 June 12 47 3 18 5 2 1 1 4 June 19 47 3 18 5 2 1 1 4 Federal Reserve notes of other banks: May 15 21, 255 672 1,602 1,334 3,561 1,468 2,780 2,495 909 1,936 578 2,952 M M a a y y 2 2 9 2 2 1 1 9, , 3 2 7 6 7 2 8 6 5 6 2 1 1 1 , , 6 5 1 2 2 6 1 1 , , 5 0 4 5 6 9 3 2, ,0 9 8 09 2 2 2, , 1 2 1 0 4 9 2 3 , , 7 0 4 6 1 0 1 1 , , 9 6 7 1 5 1 1 1 , ,7 2 2 8 1 2 2,r405' 4 5 2 8 8 5 2 2 , , 4 20 6 4 3 June 5 18,871 534 1,366 962 1,539 2,442 2,072 2,970 1,990 411 1,: 508 2,839 June 12 20,149 538 1,724 937 1,465 2,391 2,154 2,756 2,029 793 1,759 663 2,940 June 19 20,642 2,000 1,063 1,923 1,543 1,730 3,171 2,422 854 1,768 435 3,135 Uncollected items: May 15 788,124 73,234 195,316 57,834 99,611 63,026 30,611 111, 11035,883 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 May 29 637, 292 60,299 158,427 49, 355 80,499 54,442 22,810 88,870 27, 798 14,725 26,497 20,754 32,816 June 5 673,347 62, 690 154, 581 50,047 73,497 62, 743 33,687 90,294 32, 628 17,379 29,861 30,852 35,088 June 12 819,868 66,059 273, 780 50, 620 94,868 62,496 27, 703 98,873 31,992 19,613 29, 76025, 267 38,837 June 19 805,226 87, 761 199,707 93, 224 71, 972 27,872 106, 365 32, 258 19,113 33, 717 43,149 Bank premises: 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 9,839 4,530 5,485 2,519 2,019 3,367 2,325 1,386 3,181 1,153 2,920 May 29 _____ 41, 555 V 9,839 4,520 5,486 2,513 2,016 3,362 2,322 1,386 3,181 1,153 2,911 June 5 41,511 2,1 9,820 4,520 5,486 2, 513 2,016 3,362 2,321 1,384 3,165 1,147 2,911 June 12 41,532 2,866 9,820 4,520 2,513 2,016 3,362 2,343 1,384 3,1«5 1,146 2,911 June 19 41, 536 2,866 9,820 4,520 5,486 2,513 2,016 3,362 2,347 1,384 3,165 1,146 2,911 Other assets: May 15 61,760 4,184 17,892 4,889 6,889 3,580 2,546 6,398 2,698 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 May 29 63, 561 4,304 18,396 5,150 7,056 3,690 2,607 2,737 1,926 2,822 2,713 5,521 June 5 64,396 4,366 18,484 5,371 7,140 3,701 2,630 2,798 1,971 2,857 2, 784 5,628 June 12 4,444 18,828 8,986 7,213 3,763 2,685 6,729 2,832 1,999 2,895 2,783 5,706 June 19 53,019 3,570 15,105 4,182 5,"" 3,141 2,173 5,'"" 2,289 1,643 2,339 2,390 4,723 Total assets: M M a a y y 2 1 2 5 2 20 0 , , 5 4 0 7 2 8 , , 5 3 9 9 8 7 1 1 , , 2 1 0 9 1 7 , , 0 6 6 2 5 8 9 9 , , 3 4 7 6 7 1 , , 6 3 4 8 8 9 : 1 1 , ,, 2 2 22 2 21 »9 1 , , , , 7 66 75 11 59 44 9 L 11 1 , , 4 4 3 2 7 58 5, , 2 9 9 3 6 64 2 0 8 , , 1 3 6 8 2 3 4 4 8 8 9 2 , , 2 8 7 1 5 8 3 3 3 1 , , , , 0 0 0 0 6 4 6 4 1 33 1, , , , 4 1 41 0 17 3 7 5 5 53 4 39 5 9, , ,2 3 25 7 59 9 9 3 3 3 7 55 0 66 , ,, 00 7 99 0 00 0 5 5 3 2 5 1 , , 6 7 5 5 1 0 375,7Il6l5 1 , , 2 2 3 3 7 2 , , 1 4 2 8 1 6 May 29 20, 554, 5811,199,884 9,476, 799 .1,, 186,195' 1,45700,7 633,917480,070 33,,110022,, 999977 554433,,442266 335544,,385 518', 325 366; 0514, 214,1,822 June 5 20,699,722 1,228,826 9,478,2651,179,186 1,444,145 649, 597498,671 3,126,986 584,919 3621,,871514,192 378, 6981', 253,366 J J u u n n e e 1 1 9 2 2 21 1 , , 0 3 1 2 9 3 , , 4 6 4 7 5 0 1 1 , , 2 3 3 0 4 6 , , 7 0 8 0 3 5 9 9 , , 7 2 8 5 6 , 4 0 , 2 2 3 8 1 16 , , 1 2 8 2 6 2 , , 1 4 8 5 1 0 1 1, , 4 4 6 8 3 8 , , 1 3 3 4 7 9 6 65 4 l 7 ' , , 3 3 5 6 8 7 4 8 4 0 8 , 40 1 ,9 5 8 6 3 3 3, , ;1 1 7 5 0 9 , , 5 9 5 5 4 8 5 5 7 7 2 8 , , 0 5 3 4 0 33 3 5 5 8 2 , ; 3 9 9 4 75 5 1 5 9 3 , 3 2 ; 8 9 9 0 3 3 7 5 3 , 73 9 64 0 ;2 91 1 , , 2 3 8 0 6 5 , , 1 4 6 0 87 Liabilities Federal Reserve notes in actual circulation: May 15 4,968, 735 406,3041,306,676 346, 627 454,428 217,259160,3851,092, 557192,065 142,364182,455 78,714 388,901 May 22 4,984,611 407, 5161,313,809 347,693 455,052 216,032160,9361,095,8 ~45^ 192,162 142,357182,373 78, 576 392,260 May 29 5,038,386 411,9851,335,121 351, 686 459,813 221,348161,4331,102,848 193,051141,8"3"9 182,878 78,224 398,160 June 5 5,065, 239 415,6421, 341,163 352,194 4"5-8", 887711222,831163, 6821,105,868 193, 651142, 536 185,21879,564 404,019 June 12 5,081, 314 416, 4731,346,005 354,801 463,8"9"0" 223, 652164,0991,106,616193, 529 141,735 185,40479,086 406,024 June 19 5,103,916 418, 78—3 1,, 357, 273 354,386 461,131 224,184164,7231,113, 670 193, 741142,093 187,201 79,845 406,886 Deposits: Member bank—reserve account: May 15 13,093,674 641, 5477,116,129 706,451 779, 984 302, 841240,2071,700,064 258,613164,304 272,053 213,494 697,987 May 22 13, 222, 502 647,4877,213,805 700,067 792, 972 302,378 231,5651, 726', 653 266,689 156,254 264,638 214,657705,337 May 29 13,215,148 648,364 7';,191,608 665,178 799,350 291, 243 240,015 11,, 7 76655,, 5 51111 270,301 156,435 263,873 217,091706,179 June 5 13, 386,697 678,461 7\, 229,475 657,833 810,102 312,611249,848 1,792,606 309,645 162,362 259, 598 219,815 704,341 June 12 13, 510,111 681, r, 309, 315 668,056 804,266 305, 531240, 537 1,825, 582 296, 597 158,214 265,871 227,177727,192 June 19 13, 712, 233 707,0657, 536,248 667,965 812; 495 297, 555 238, 572 1, 778, 965 295, 533 152,750 265, 563 219,347540,177 U. S. Treasurer—general account: May 15 424, 634 21, 594 119,150 26,037 29,194 22,991 26,847 39, 522 29,926 24,888 24,384 28,985 31,116 May 22 370,008 16, 929 117, 858 25,481 21,894 16,369 25,632 36, 588 19,421 17, 92123,912 24,334 23,669 May 29 377, 749 16,647 105,373 27,226 29,139 26,012 22,440 40,614 21.865 18, 24221,048 23,109 26,034 June 5 308,135 10,916 77,328 27, 563 21,901 14,856 20,425 35, 721 18,808 19, 211 16,969 20,179 24,258 June 12 265,424 7,084 56, 935 13,257 22.185 18,133 13,172 32,949 19,258 16, 351 16,534 17,321 32,245 June 19 298, 212 11, 341 86, 225 27, 238 21, 742 15,026 11,341 35, 241 19, 729 12, 587 18, 778 17, 639 21, 325 Foreign bank: May 15 400,930 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 May 29 440,086 31, 653 154,606 43,401 41.186 19,043 15, 500 53,144 13, 286 9,743 12,843 13,286 32,395 June 5 454,181 32, 456 161, 218 44, 547 42, 274 19, 546 15, 909 54, 547 13,637 10,000 13,182 13,637 33, 228 June 12 455,030 33,137 157,010 45, 294 42,983 19,874 16,176 55,462 13.866 10,168 13,403 13,866 33,791 June 19 659, 828 47, 311 234,410 64,656 61,358 28,369 23,092 79,171 19,792 14, 514 19,132 19, 792 48,231 • Less than $500. JULY 1940 687 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 i l l- a a- C la le n v d e- m Ri o c n h d - la A n t t - a 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 is a a c n n o - Liabilities—Continued Deposits—Continued: Other deposits: May 15__ 476,886 6,561 386, 313 21,645 8,685 4,575 5,630 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 May 29 509,464 7,755 421,358 16,571 8,083 7,262 5,742 4,910 5,847 5,227 440 2,819 23,450 June 5 494,321 6,392 409,878 15,664 7,335 2,886 7,463 4,834 5,953 5,511 433 2,747 25, 225 June 12 559,080 6,752 471,914 19,645 7,710 2,559 5,353 4,540 6,308 5,378 433 2,613 25, 875 June 19 438,487 6,957 354,797 17,972 8,226 2,291 5,393 3,901 5,844 5,263 344 2,552 24,947 Total deposits: May 15 14,396,124 698,053 7',, 766,689 793,025 854, 770347,472 286, 5741, 790,824 30i6,, 876202,81 781,950 May 22 14, 527,125 704:,, 136', 877,8,004 788, 506 865,322 342,91: 283,8361,825,725 305., 662189,415302,176 255, 978 785,453 May 29 14, 542,447 704,, 419 ',7 ,872, 945 752,376 877, 758 343, 560 283,6971,864,179 331111,, 229999 189, 64' 256,305 788,058 June 5 14, 643, 334 728i,, 225 ',7 8.77,899 745,607 881,612 349,899 293, 64f1,887,708"348, 043197,084 290,182 256, 378 787,052 J J u u n n e e 1 1 2 9 1 1 4 5 , , 1 7 0 8 8 9 , , 7 6 6 4 0 5 7 7 2 7 8 2 i, , , 6 7 7 4 4 6 8 r, , 7 2 9, 1 9 1 5 , , 6 1 8 7 0 4 7 7 4 7 6 7, , 8 2 3 5 1 2 8 9 7 0 7 3 , ,8 1 .2 4 .1 4 . 3 3 4 4 6 3 , ,2 0 4 9 1 7 2 2 7 7 5 8 , , 2 3 3 9 8 8 1 1 , , 8 9 9 1 7 8 , , 2 5 7 3 8 3 : 3 3 3 4 36 0 3, , 60 8 ,2 9 09 8 291 18 9 5 0 i , 1 1 1 1 1 4 303; 817 2 6 2 0 5 , 9 9 , 7 3 7 28 8 8 1 3 9 4 , , 1 6 0 8 3 0 Deferred availability items: 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 23 632,653 61,060 145,871 52, 238 71,812 53,713 25,010 94,317 30,342 14,944 26, 503 23,111 33, 732 May 29 615,189 58, 534 144,887 48,685 79,345 53,479 21,877 90,336 27,958 13, 541 26, 523 20,050 29,974 June 5 632,339 59,961 135,359 47,725 61,352 28, 287 87, 839 32,095 13, 891 28,076 31, 289 36, 579 June 12. 785, 528 64,565 259, 787 47,877 88,249 62,037 27, 737 99, 759 31, 829 17,172 26, 907 24,361 35, 248 June 19 750,862 89,499 171, 220 56, 815 89, 533 68, 614 27,888 103, 378 32, 238 16, 399 32,171 25, 677 37,430 Other liabilities, including accrued dividends: 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 May 29 5,181 474 1,488 578 551 190 207 630 149 164 279 193 278 June 5 5,277 518 1,470 773 534 172 194 540 147 166 268 181 314 June 12 9,297 508 1,636 4,355 597 199 210 617 165 181 276 199 354 June 19 5,301 536 1,616 583 181 203 557 150 168 255 197 356 Total liabilities: May 15 20,125, 564., 176,616), 9 2,55,404 196, 774 1,404,329 625,051476, 438 2,998,129 534,436 361, 520 525,234 364, 504 1,207,129 May 22 20,149,117 ., 173,152> ,9 ,339,087 188,899 1,392,671 612,817 469,972 3,016,429 528,299 346,902 511,305 357,840 1,211, 744 May 29... 20, 201, 203., 175, 41>2, 395,4,441 153, 325 1,417,467 618,577 467, 214 3,05'7|, 99533 2i, 4.57 345,191507,884 354,772 1,216,470 J J u u n n e e 5 12 2 20 0 , , 3 6 4 6 6 5 , , 1 7 8 8 9 4 ., "1 2 , 0 2 4 9 , 2 3 4 9 9 \ 6 , , 39 6 5, 0 5 2 , , 8 6 9 0 1 2 I 1 15 4 3 6 , ,2 2 9 8 9 5 1 1 , , 4 4 1 2 0 9 , , 9 8 0 8 3 0 6 6 3 3 4 1 :, , , 9 " 8 2" 5 5 4 46 4 7r 8 ,, 5 , " " 8 2 0 "8 8 4 3 3 0 1 , , 8 2 1 5 , , 9 5 5 2 5 5 5 5 f6 7 "1 3 , , 5 9 5 3 2 6 3 33 3 44 55 99 33 ;, ,, 1 6 1 6 9 7 9 7 9 7 9 7 5 5 0 0 8' 3 , , 8 7 2 4 8 43 - 6 3— 7 6 , 4, 4 1 6 2 2 3 1 ,227,964 June 19 20, 968,8391, 281,492 9, 741,789 I189, 531 1,455,068 636\,, 220 4,71 2,12 31,14,883567,027343, 774 1, 260,729 523; 444 365,047 1, 279, 352 Capital Accounts Capital paid in: 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 51,045 11,918 13,997 5,276 4,632 13, 629 4,131 2,956 4,378 4,119 10, 714 May 29..... 136,151 9,332 51,039 11,918 14,000 5,276 4,632 13, 649 4,131 2,958 4,378 4,124 10,714 June 5 .... 136,165 9,332 51,039 11,917 14,000 5,276 4,632 13, 659 4,137 2,957 4,378 4,124 10,714 June 12 136,169 9,332 51,039 11,917 14,006 5,277 4,634 13, 656 4,137 2,956 4,379 4,121 10, 715 June 19 137,097 9,332 51,039 11,917 14,006 5,278 4""' 13, 676 4,139 2,956 4,382 4,121 11, 615 Surplus (section 7): 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 May 29... 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 June 5 151, 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 June 12 151, 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 June 19 . 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) : May 15 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 4,393 1,007 3,246 713 1,429 538 1,001 1,142 1,266 2,121 May 29 2,874 7,109 4,393 1,007 3,246 713 1,429 538 1,001 1,142 1,266 2,121 June 5 26, 839 2,874 7,109 4,393 1,007 3,246 713 1,429 538 1,001 1,142 1, f"" 2,121 June 12 26, 839 2,874 7,109 4,393 1,007 3,246 713 1,429 538 1,001 1,142 2,121 June 19 26,839 2,874 7,109 1,007 3,246 713 1,429 538 1,001 1,142 2,121 Other capital accounts: May 15 1,! 10, 760 2,337 3,876 1,563 1,767 7,096 1,565 2,070 1,285 ,905 2,305 May 22... . 38, 594 1,865 10,822 2,351 3,895 1,576 1,776 7,106 1,582 2,079 1,312 ,912 2,318 May 29 38,668 1,861 10, 884 2,361 3,910 1,571 1,786 7,102 1,591 2,083 1,308 ,918 2,293 June 5 38,809 1,869 10, 900 2,379 3,912 1,574 1,793 7,119 1,599 2,084 1,315 ,922 2,343 June 12 38, 933 1,880 10, 947 2,388 3,921 1,581 1,800 7,120 1,607 2,086 1,327 :,925 2,351 June 19 39,175 1,902 11,023 2,411 3,945 1,596 1,812 7,146 1,617 2,092 1,322 1,934 2,375 Total liabilities and capital accounts: May 15. 20,478, 598 201,065 9, 377,648 1, 229, 614, 437, 529 640,383 489, 275 3,043,103 545,379 370,700 535, 653175, 7651,232, 486 May 22 _ 20, 502,397 197,6289,4'6-1.,•, " 3-8 9 ,1221,759 ,425,893 628,162 482,818 ,r '" 521, 750 369, 1111, 237,121 May 29 20, 554, 581 199,8849,476, 799 I.', 186,195450, 707 633,917 480,070 543, 426354, 385518, 325 366, 0541, 241, 822 June 5 20, 699, 722 228,8269, 478, 265. I, 179,186 3,126,986 584,919 362,871514,192 378, ~~~1, 253,366 June 12 21,019, 445 234, 7839,725,0231,186,181 , 463,137 647,336 480,156 3,170, 554572, 543 358, 394519, 289 375,9091, 286,140 June 19 21,323, 670 306, 0"05" 91,,864[,,"" 28:6 ,1 ,222,4501,488, 349 651, 587 484,098 3,159, 958578,030352, 975 533,903376,342 1, 305,687 Commitments to make industrial advances: May 15 8,933 326 840 1,145 1,177 696 516 179 175 3,803 May 22 8,883 322 839 1,145 1,173 516 175 167 3,775 May 29 8,852 322 831 1,144 1,173 515 175 167 3,757 June 5 322 828 1,139 1,177 515 175 167 3,740 June 12 8,676 322 828 1,138 1,181 515 175 167 3,590 June 19 8,587 267 822 1,138 1,172 515 170 167 3,575 688 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, Applications Applications under Applications Commit- Approved expired, Particireceived consideration approved A \1 V till C/CD ments but not or with- pations Date (last Wednesday of out- com- drawn by outeach month) standing! standing pleted 2 appli- standing3 ^ amount.,) Camount) (amount) cant, etc. (amount) Number Amount Number Amount Number Amount (amount) 1934—Dec. 26... 4,386 146,972 71 2,955 984 49,634 13,589 8,225 20,966 5,558 1,296 1936—June 26... 6,325 237,581 68 11,349 1,646 88,778 27, 518 20,579 11,248 24,900 4,533 Dec. 31 *_. 7,437 293,084 28 2,823 1,993 124,493 32,493 27,649 11,548 44,025 8,778 1936—June 24.. 8,006 314,471 12 1,880 2,183 133,343 30,484 24,454 9,381 61,425 7,599 Dec. 30. _ 8,247 328,998 5 1,245 2,280 139,829 25,526 20,959 8,226 77,910 7,208 1937—Mar. 31.. 8,344 333,300 9 1,322 2,323 141, 545 23,059 18, 611 7,898 85,210 6,767 June 30.. 8,430 339,509 10 1,263 2,361 145,758 23,019 16,331 1,470 97,663 7,275 Sept. 29.. 8,474 341,842 1 800 2,381 146,724 21,415 14,880 537 102,588 7,304 Dec. 29.. 8,534 350, 551 7 550 2,406 150,987 20,216 12,780 3,369 107,384 7,238 1938—Mar. 30.. 8,708 358, 936 19 1,299 2,464 154,918 19,371 13,110 3,419 111, 193 7,825 June 29.. 8,976 369, 583 8 476 2,566 161,158 18,444 13, 649 3,084 117, 555 8,426 Sept. 28.. 9,102 378,974 8 146 2,617 168,380 17, 567 13, 597 5,737 122,447 9,032 Dec. 28.. 9,188 387,490 5 247 2,653 175,013 17,345 14,161 1,946 128,839 12, 722 1939—Jan. 25... 9,203 389,176 8 999 2,660 175,651 16,811 13,004 1,293 132,009 12, 534 Feb. 21 <-. 9,221 389,554 7 964 2,671 175,902 16,474 12,907 1,105 133,001 12,415 Mar. 29... 9,249 392, 230 14 344 2,683 177,895 15, 798 12,647 . 1,975 135,004 12,471 Apr. 26... 9,270 394,055 7 495 2,697 178,639 15,817 11,749 2,134 136,696 12, 243 May 31... 9,296 394, 970 6 400 2,713 179,332 15,305 11, 530 2,496 137,922 12,079 June 28... 9,308 395,499 5 255 2,721 179,778 15, 255 11,175 2,067 139,281 12,000 July 26.... 9,330 399, 780 6 760 2,730 183,354 15,384 11,476 733 142,943 12,818 Aug. 30... 9,355 401,228 7 532 2,743 184,152 14,667 11,009 1,220 144,812 12,444 Sept. 27.. 9,366 402, 305 2 370 2,752 185,234 14,454 10,517 1,938 146,156 12,169 Oct. 25. . 9,388 402,944 1 70 2,763 186,034 14,545 10,156 1,764 148,037 11,532 Nov. 29... 9,401 404,226 3 92 2,772 187,257 14,051 9,643 2,548 149,911 11,104 Dec. 27. . 9,418 405,225 2 41 2,781 188, 222 13, 683 9,220 2,659 151,679 10, 981 1940—Jan. 31—. 9,433 406,097 2 76 2,793 188,879 12,860 8,376 2,504 154,629 10, 510 Feb. 28... 9, 456 407,392 4 32 2,805 190,055 12,997 8,966 1,454 155, 574 11,064 Mar. 27 .. 9,476 410,192 7 199 2,814 192, 665 12, 723 8, 224 2,471 158,110 11,137 Apr. 24_. 9,487 411,628 4 118 2,825 194,096 12,001 8,725 2,264 159,950 11,156 May 295.. 9,504 413,178 3 45 2,832 195,404 11,242 8,852 2,474 161,491 11, 345 June 12 5.. 9,507 413,197 1 10 2,836 195, 535 11,100 8, 676 2,443 162,155 11,161 i Includes industrial advances past due 3 months or more which are not included in industrial advances outstanding in weekly statement of condition of the Federal Reserve Banks. »Includes applications approved conditionally by the Federal Reserve Banks and under consideration by applicant. 8 Does not include financing institution guaranties of advances and commitments made by Federal Reserve Banks, which amounted to $1,008,903 June 12,1940. 4 Tuesday. 6 Latest date for which figures are available. FEDERAL RESERVE NOTES—FEDERAL RESERVE AGENTS' ACCOUNTS, BY WEEKS [In 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 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 r i a s a c n n o - Federal Reserve notes: Issued to F. R. bank by F. R. agent: May 29 5,349, 723425,6231,432,689 367, 213 482, 615 236,934 1,145, 939 203,968 147,258 193,15185, 560 453,853 June 5 5,367,189 430, 7701,432,0'80 369, 526 482,885 238,477 1,149, 333 203,373 146, 850 86, 329 455,133 June 12 5,398, 209435,108 1., 441,022 372,108 485,143 213,94,3 1" 1,148,805 205, 553 147, 578 86,929 461, 658 June 19 5,422, 695439; 030 1,449,828 370', 619 487; 067 239,824 1,153, 570 204,374 147, 538 197,81087, 743 466,035 Held by Federal Reserve bank: May 29 311, 337 13,638 97, 568 15, 527 22,802 15, 586 13,487 43,091 10,917 5,419 10, 273 7,336 55, 693 June 5 301, 950 15,128 90,917 17, 332 24,014 15, 646 13, 731 43,465 9,722 4,314 9,802 6,765 51,114 June 12 316,895 18, 635 95,017 17,307 21, 253 15,779 15, 240 42,189 12,024 5,843 10,131 7,843 55, 634 June 19 318, 779 20,247 92, 555 16,233 25,936 15, 640 14, 534 39,900 10,633 5,445 10,609 7,!" '" 59,149 In actual circulation ;i May 29 . 5,038,386 411.,9,8 59 815, 3135,121351, 686 459,813 221348 161.,, 433, 1 102,848193,051141,839182,878 78, 224398,160 June 5 5,065, 239415,642 1,341,163 352,194 458, 871 222,"8"31 163,6821,105,868193, 651142, 536185, 21879, 564 404:,, 019 June 12 5,081,314 416,473 1,346,005 354,801 463,890 223, ""164, ., 106, 611693, 141, 735185,404 79,086 406,024 June 19 5,103, 916418, 783 1, 357,273 354,386 461,131 224 164, 723 I,] 113, 670193, 741142,093187, 201 79,845 406,886 Collateral held by agent as security for notes issued to bank: Gold certificates on hand and due from U. S. Treasury: May 29 5,455, 500440,0001,455,000 375,000 484,000 250,000180,000 1,160,000 209,000 148, 500 200,00090,000 464,000 June 5 5, 455, 500440,000 '1, 445555,,000000 3 37755,,000000 4 48844,,000000 2 25500,,000000180,000 1,160,000 209,000148, 500 200,000 90,000 464,000 June 12 5,483, 500440,000 11.,.4 65.,000 375,000 487,000 250,000 185; 000 1,1QQ, 000 209; 014080, 500 200,000 90,000 474,000 June 19 5, 536, 500460,000 1,475,000 385,000 490,000 250,000185, 000 1,160,000 209,000 148, 500 200,000 90,000 484,000 Eligible paper: May 29 2,307 96 905 130 630 170 279 June 5 2,028 83 1,178 130 105 164 310 June 12 1, " 102 740 110 105 203 320 June 19 1,429 129 387 110 131 205 376 Total collateral: May 29 5, 457,807440,096 1,455, 905 375,097 484,000 250,130180,000 1,160,000 209, 630148,670 200, 279 90,000 464,000 June 5 5,457, 528440,083 1,456,178 375,058 484,000 250,130 180,000 1,160,000 209,105 148,664 200,310 90,000 464,000 June 12 5,485,169 440,102 1,465, 740 375,089 487,000 250,110185,0001,160,000 209,105 148,703 200,320 90,000 474,000 June 19 5, 537, 929460,129 1,475,387385,091 490,000 250,110 185,0001,160,000 209,131148, 705 200,37 90,000 484,000 1 Includes Federal Reserve notes held by the United States Treasury or by a Federal Reserve Bank other than the issuing bank. JULY 1940 689 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RESERVE POSITION OF MEMBER BANKS, MAY, 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 d r a e e o n - - s d s m N d d a e e e n - - t d p T o d i s m e i - t e s F R ed e e se r B a rv a l e n 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 a re n C s k e h s r i v - e b s c R a e i n r e t v y k - e s b C a t o n r u y k n s - * posits posits ! Re- Ex- York cago quired Held cess Total reserves held: 1939—May 9,997 5,094 878 2,630 1,395 All member banks.. 39,181 31, 939 11,999 6,798 13,086 6,288 June 10.085 5,049 893 2,728 1,415 Central reserve city banks: July 10,321 5,195 848 2,827 , 451 New York 14,890 14, 213 746 3,271 6,660 3,389 August 10, 659 5,366 923 2,883 ,486 Chicago 2,978 2,616 501 620 1,097 477 September 11, 443 5,866 1,009 3,009 ,559 October 11, 862 5,958 1,112 3,203 ,588 Reserve city banks: November __. 11, 688 5,759 1,115 3,229 1,585 Boston district 1,254 1,131 86 202 449 247 December 11, 473 5,623 1,141 3,141 , 568 New York district 230 180 157 39 62 23 1940—January 11, 985 6,099 940 3,319 ,628 Philadelphia district.. 1,467 1,226 229 226 512 286 February 12, 215 6,323 901 3,344 ,646 Cleveland district 1,846 1,451 738 291 620 329 March 12, 362 6,428 899 3,368 ,668 Richmond district 841 601 216 116 199 83 April. 12, 703 6,548 972 3,476 ,706 Atlanta district 823 545 180 104 144 39 May 13.086 6,660 1,097 3,615 ,714 Chicago district 1,435 984 609 203 379 176 Weekending (Friday): St. Louis district 893 676 175 127 188 61 1940—May 3 12,919 6,634 1,039 3,536 ,711 Minneapolis district.. 403 300 87 57 87 30 May 10 12,893 6,544 1,061 3,567 ,722 Kansas City district- 1,064 694 158 129 198 68 May 17 13,037 6,599 1,092 3,622 ,724 Dallas district 784 456 129 86 134 48 May 24 13, 242 6,762 1,119 3, 652 ,708 San Francisco district 2,350 1,870 1,996 427 644 217 May 31 13, 253 6,763 1,135 3,657 ,699 June 7 13,354 6,805 1,162 3,643 ,745 Total 13,390 10,113 4,759 2,008 3,615 1,607 June 14 13, 511 6,841 1,202 3,714 1,754 Excess reserves: Country banks: 1939—May 4,212 2,465 360 858 529 Boston district 921 655 562 107 195 88 June 4,246 2,394 362 944 546 New York district.... 1,434 974 1,408 187 406 218 July 4,402 2,504 305 1,013 581 Philadelphia district. 687 434 881 96 186 89 August 4,607 2,587 363 1,046 611 Cleveland district 646 410 704 84 161 76 September 5,198 2,943 430 1,147 678 Richmond district 597 344 369 60 101 42 October 5,490 2,974 518 1,295 704 Atlanta district 577 334 239 52 95 43 November 5,259 2,753 516 1,294 696 Chicago district 946 572 758 107 224 118 December 5,011 2,611 540 1,188 671 St. Louis district 394 240 243 41 72 31 1940—January 5,464 3,045 342 , 350 727 Minneapolis district._ 332 204 280 39 68 29 February 5,626 3,199 301 ,378 747 Kansas City district.. 467 280 159 42 69 27 March 5,734 3,248 310 ,405 771 Dallas district 563 332 106 45 82 37 April 6,003 3,312 388 ,494 809 San Francisco district 361 219 285 40 56 15 May 3,389 477 ,607 815 Week ending (Friday): Total 7,923 4,997 5,993 899 1,714 815 1940—May 3 6,158 3,375 431 ,540 812 May 10 6,146 3,307 449 ,567 822 May 17 6,252 3,346 471 ,611 825 1 Gross demand deposits minus demand balances with domestic banks May 24 6,412 3,467 494 ,642 809 (except private banks and American branches of foreign banks) and May 31 6,406 3,456 509 ,641 800 cash items in process of collection. June 7 P6, 513 3,492 537 ,639 P846 NOTE.—See table at foot of p. 684 for percentages of deposit required June 14 P6, 630 3,515 565 1,695 *>855 to be held as reserves. p Preliminary. i Weekly figures of excess reserves of all member banks and of country banks are estimates. DEPOSITS OF MEMBER BANKS IN LARGER AND SMALLER CENTERS [Averages of daily figures. In millions of dollars] Member banks in larger centers Member banks in smaller centers All member banks (places over 15,000) (places under 15,000) Federal Reserve district Gross demand Time Gross demand Time Gross demand Time May April May April May April May April May April May April Boston... 2,175 2,153 648 648 2,044 2,023 517 517 130 130 131 131 New York... 16 554 16 339 2 311 2 327 i 1 364 i 1 301 i 1 063 i 1,062 300 297 501 502 Philadelphia.. 2,153 2, 111 1 110 1 112 1 912 1,870 653 655 241 241 457 456 Cleveland 2,492 2,460 1,441 1,441 2,246 2,214 1,129 1,130 245 246 312 311 Richmond ._ 1 438 1 429 585 584 1 238 1 229 380 379 199 201 205 204 Atlanta 1,399 1,399 419 418 1,217 1,211 329 327 183 188 91 90 Chicago 5,359 5,142 1,868 1,860 i 2,025 i 1,995 i 1,058 i 1,053 356 356 309 307 St. Louis 1 287 1 287 418 420 1 046 1 048 298 301 241 239 119 119 Minneapolis 735 733 367 369 539 537 177 179 197 196 190 190 Kansas City 1,531 1,497 317 316 1,188 1,151 201 201 343 346 116 116 Dallas 1 347 1 341 235 232 1 040 1 033 188 188 307 308 47 45 San Francisco 2,711 2,668 2,281 2,262 2,588 2,545 2,179 2,160 123 123 101 101 Total 39,181 38, 560 11,999 11,987 118,447 118,158 i 8,173 i 8,152 2,866 2,871 2,579 2,573 1 Excluding central reserve city banks, for which figures for latest month are shown in table above. 690 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 dollars End of month Total c c G e a r o t t i e l f d s i- d S o i l l l v a e r r s c S c e i a r l t t v i e f e s i r - o T n f u r o e r 1 t a y 8 e s 9 s - 0 S s u c i i a l b o v r s i y e n id r - M co in in or U S n n t o a i t t t e e e s s d R F n e e o d se t e e r r v s a e l R F n b e e o a d se n t e e r r k v s a e l t b n i N o o a n n t a e a k - s l 1939—April 6,905 1,385 354 152 255 4,426 191 May 6,967 1,417 358 154 259 4,449 189 June 7,047 1,454 361 155 266 4,484 186 July 7,049 1,446 362 156 264 4,496 184 August 7,171 1,465 365 157 267 4,595 182 September 7,293 1,488 369 159 269 4,688 180 October. __ 7,342 1,485 373 161 267 4,739 178 November. 7,483 1,530 379 163 269 4,826 177 December. 7,598 1,554 381 164 272 4,912 175 940—January __. 7,376 1,469 372 163 265 4,796 173 February- 7,455 1,500 373 163 271 4,839 171 March 7,511 1,508 375 164 260 4,896 170 April 7,559 1,557 377 166 248 4,906 168 May 7,710 1,590 382 168 241 5,025 167 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] i T n o c t i a r l - Coin and small denomination currency 2 Large denomination currency 2 Un- End of month cula- assortto ti t o a n l i Total Coin $13 $2 $5 $10 $20 Total $50 $100 $500 $1,000 $5,000 $10,000 ed 2 1939—April 6,905 5,069 548 505 32 929 1,602 1,453 1,838 418 829 170 370 18 33 3 May 6,967 5,109 554 513 33 937 1,614 1,458 1,861 422 836 172 380 17 33 3 June 7,047 5,164 558 514 33 947 1,638 1,473 1,887 428 848 176 388 17 29 3 July- 7,049 5,169 561 514 33 947 1,644 1,470 1,885 426 847 175 391 17 28' 4 August 7,171 5,253 566 521 34 966 1,681 1,487 1,922 433 857 180 405 17 30 4 September 7,293 5,329 571 532 34 980 1,706 1,507 1,965 440 876 185 413 20 30 1 October ___ _ 7,342 5,363 577 535 34 9£2 1,710 1,526 1,981 445 884 186 415 20 30 2 November... __ 7,483 5,478 586 545 35 1,004 1,752 1,557 2,007 452 896 188 420 20 32 2 December 7,598 5,553 590 559 36 1,019 1,772 1,576 2,048 460 919 191 425 20 32 2 1940—January 7,376 5,332 579 526 34 970 1,692 1,532 2,047 457 920 191 426 20 33 3 February.. __ 7,455 5,397 581 530 34 986 1,723 1,543 2,061 459 930 191 427 20 34 4 March 7,511 5,414 584 531 33 989 1,731 1,546 2,101 460 941 194 432 24 49 4 April 7,559 5,437 588 534 34 992 1,739 1,551 2,126 463 951 195 439 30 48 4 May .. ._ 7, 710 5,519 595 546 35 1,009 1,766 1,568 2,193 471 979 202 464 26 50 1 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] End of month Total d S s b o a i i u l l n l v l v l - d a e e r r r s s S c i i s u a l o i b v d r i - y e n - r Mi co n i o n r U S n n t o i a t t t e e e s d s b s F e R e a e r r e n a v d - k l e - t n b i N o o a n n t a e a - k s l Year or month m E S e u n h r i t o p s p - t e o R E e f u r c o r e o m i p p e ts m s N h e i e n p t t - s rec N e e ip t ts lion i notes 1937 21.5 47.6 26.1 1938 33.1 34.4 1.3 1939 110.2 9.8 100.4 1939—April 2,849 1,746 376 160 347 193 May 2,862 1,759 377 161 347 191 1939—May 3.8 .7 3.1 June 2,881 1,778 380 161 347 189 June 2.9 1.1 1.8 July 2,895 1,794 381 162 347 186 July 2.2 1.0 1.2 August 2,907 1,804 383 162 347 185 August 4.7 .9 3.8 September. 2,919 1,814 386 164 347 183 September .8 .1 .7 October 2,932 1,825 390 166 347 181 October 1.8 .2 1.6 November. 2,947 1,835 394 167 347 179 November. 4.5 1.3 3.2 December.. 2,963 1,845 399 169 347 178 December. 6.6 .3 6.3 1940—January.. _. 2,971 1,855 400 169 347 175 1940—January... 5.3 0) 5.3 February... 2,981 1,866 401 170 347 173 February.. 4.7 (0 4.7 March 2,990 1,876 401 171 347 172 March 1.4 0) 1.4 April 2,999 1,886 400 172 347 171 April 3.5 0) 3.5 May 3,008 1,894 402 173 347 169 May 1.1 (0 1.1 i Includes silver held against silver certificates amounting to $1,816,- i Less than $50,000. 000,000 on May 31, 1940 and $1,656,000,000 on May 31, 1939. Back figures.—See Annual Report for 1937 (table 38). Description.—See BULLETIN for January 1932, pp. 7-8 JULY 1940 691 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 dollarsl [In thousands of dollars] Period T O e o n o t d a l d l o s f t p o a e i c c n r k c a i o o c a d t u t iv n e t c s t g r t I o o i e o n t l a n c a - d s k l e im g N o p e l o d t rt m t a g h t c a a r r N e t a r o i i a n k n o e u r i t - s n g o n - s h r g ' m g d t p D i t o u r o i e o o c l c s n d - - - - From or to— Im- May Ex- Im- Ap 19 r 4 il 0 Ex- Im Ja - n.-Ma E y xports ports ports ports ports ports 1934* 8,238 4,202.5 133.9 82.6 C92.9 1 1 1 1 1 9 9 9 9 9 3 3 3 3 3 6 7 5 9 8 .. _. 1 1 1 1 1 7 2 4 0 1 , , , , , 6 7 5 1 2 4 6 1 2 5 4 0 2 5 8 1,2 2 2 6 7 . . 5 9 3 1 1 1 1 , , , , , 1 1 8 5 7 3 3 8 0 5 2 2 7 2 1 . . . . . 0 2 5 5 5 3, 9 7 5 1 5 7 3 8 1 7 3 9 6 5 4 . . . . . 6 0 6 5 2 - - - 3 2 5 -8 3 0 3 3 5 0 4 . . . . . 9 4 4 2 5 1 1 1 1 1 1 4 4 3 5 0 8 3 1 9 . . . . . 7 6 9 6 8 I N B H F t r e a e u a l l t n g n y h g i c e u a e r m r l y ands 2 8 9 , , , 9 4 2 5 3 4 4 0 1 8 0 1 3 5 6 , , , 9 2 1 8 7 0 4 3 8 4 5 1 3 9 1, , , 9 8 9 1 5 7 7 7 3 8 7 3 4 2 5 Norway 33,405 1938— J N A S O D J u e u o c e u p l t g v c n y o t e u e e e b . m . m s m . e . t . r b b . b e e e r r r .. 1 1 1 1 1 1 1 2 3 4 3 4 3 4 , , , , , , , 9 1 0 7 0 5 3 6 3 6 1 6 1 1 3 6 5 7 0 2 2 3 6 2 1 1 4 5 0 2 4 9 1 4 4 5 3 7 9 8 . . . . . . . 2 0 5 8 5 6 3 2 5 5 1 1 6 5 4 2 6 6 7 3 5 0 2 0 6 7 . . . . . . . 8 3 9 4 0 5 8 -1 - - - - - - 1 2 2 6 1 1 7 0 3 8 2 5 0 . . . . . . . 4 9 8 4 3 5 2 1 1 1 1 1 1 9 4 4 5 4 3 3 . . . . . . . 6 7 2 5 5 1 3 U U S S C M C B w w . a o n e e n n l i e i S x i t t a d t i v . e z r c d e d i a e S o a n a l r . l K A a R n i m . n d .. e g . _ _ r d i _ c o a m.. _ .. 2 6 8 1 2 2 1 1 , , , , 8 3 1 0 4 3 1 9 4 5 3 2 1 8 4 2 3,54 1 5 6 3 3 4 5 3 2 9 4 2 , , , , , 3 6 6 9 5 6 9 5 5 9 6 1 6 3 4 7 3 7 9 32 6 1 1 8 8 1 5 8 5 3 5 8 4 1 6 , , , , , , , 5 1 2 6 4 1 7 1 7 9 8 0 9 1 1 7 4 0 5 5 8 9 8 "§," 1 5 3 4 1 5 1939— J J A M M F u u J e p a n a l a b y r n e y r i r c u . l u _ h r a _ ry ry .,.. 1 1 1 1 1 1 1 5 5 4 5 6 6 4 , , , , , , , 9 8 2 1 2 6 7 5 7 5 1 3 8 9 7 4 8 2 0 8 1 3 1 1 5 1 1 1 8 7 9 6 3 5 2 3 0 2 6 8 2 3 . . . . . . . 8 0 7 2 0 3 3 3 4 2 6 2 2 1 6 2 4 0 2 7 5 5 9 0 5 3 8 6 . . . . . . . 4 4 4 8 3 6 3 - - - - 1 2 1 1 - 1 4 5 0 6 1 1 4 1 8 4 4 4 0 . . . . . . . 6 8 0 6 7 1 1 1 1 1 1 1 1 2 0 1 2 0 3 3 . . . . . . . 2 6 5 1 7 1 1 V E P C C A B e c o e h r u i r u n l i s t u o l a e i t e r s m z d a h u o b l e i r I i a l a n a dia I 2 4 5 1 1 , , , , , 4 1 3 3 1 2 5 1 3 1 2 3 1 7 7 3 4 7 2 0 7 3 2 3 1 , , , , 1 3 1 1 4 2 4 3 7 7 1 7 5 7 9 1 4 6 5 2 1 2 35 4 5 6 2 6 1 , , , , , , , 2 0 3 2 3 6 7 6 5 0 5 4 0 3 2 4 6 0 7 4 4 A N D S O e u o e c p t c 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 7 7 6 6 7 , , , , , 0 3 6 9 6 9 5 4 3 4 1 8 6 2 4 4 2 2 2 1 0 8 6 5 8 7 5 7 9 5 . . . . . 6 9 9 1 1 2 3 4 1 6 5 2 5 6 9 9 6 8 1 . . . . . 7 9 0 1 2 -2 1 0 7 9 5 0 2 9 0 2 . . . . . 8 8 9 5 1 1 1 1 1 1 5 4 8 4 3 . . . . . 7 1 8 5 2 J C P S A a h o h l K p l i u i o l a o n t i h n t p n a h g p A e i r n f a r c e n i o c I d a u s n la t H r n i o e d n s s 1 g . . . . 3 3 4 2 1 2 , , , , , 9 7 4 4 4 5 0 4 7 9 8 5 3 7 5 2 4 3 8 1 1 , , , , , 7 3 7 7 0 1 7 0 4 9 0 6 0 8 7 1 5 1 1 2 5 7 7 5 3 , , , , , 8 1 6 9 2 4 7 4 0 1 9 7 7 9 9 1940—January 17,931 287.5 236.4 40.0 13.6 February 18,177 246.0 201.4 37.0 11.4 Total... 438,695 3,563 249,885 33 1,586,313 3,689 March 18,433 256.0 459.8 -213. 4 12.1 April 18, 770 336.9 249.9 67. 13.0 May 19, 209 439.0 435.1 -36. P14.0 1 Figures represent customs valuations which, with some exceptions, June 1-26P. 19,871 662.31,129. 7 -456. 4 are at rate of $35 a fine ounce. » Includes all movements of unreported origin or destination. * Preliminary. cCorrected. Bqpk figures.—Bee table, p. 725, and Annual Report for 1937 (tables 1 Gold held under earmark at Federal Reserve Banks for foreign ac- 31 and 32). count on May 31,1940, in millions of dollars: 1,269.0. * 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. 725, 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. S. from Philip- BANK DEBITS pines. For back figures see Annual Report for 1937 (table 29). [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 banks banks Year and month report- York lead- report- Total, ing City ing ing all centers centers 1centers2 banks Na- In- Not tional State sured* insured 1929 982, 531 603,089 331,938 47,504 Num 1 1 1 1 9 b 9 9 9 3 3 3 3 e 7 4 5 6 r - o _ f banks suspended: 48 1 1 1 1 1 9 9 9 9 9 3 3 3 3 3 6 9 8 7 5 4 4 4 4 4 6 0 2 0 6 1 2 3 5 9 , , , , , 8 9 7 4 9 8 2 6 1 3 9 9 3 8 2 1 1 1 1 6 7 8 9 8 1 4 7 , , , , 0 8 7 3 0 3 7 8 6 6 8 2 2 2 2 2 1 1 1 3 0 9 9 8 5 4 0 , , , , , 7 1 2 6 2 4 6 9 0 7 5 5 8 6 0 3 3 3 3 2 3 8 6 2 4 , , , , , 4 4 2 2 5 2 0 5 8 4 1 6 2 3 7 1 1 9 9 3 3 8 9 1939— M Ap ay ril 3 34 2 , , 8 6 2 5 2 6 1 14 3 , . 1 3 6 1 5 1 1 1 6 7 , , 7 8 6 3 3 2 2 2 , , 6 7 7 2 9 8 1940—Jan.-May June 36,883 15.312 18, 676 2,895 De (i p n o 1 9 s t 3 h it 4 o s u o s f a s n u d s s p e o n f d d e o d l l b a a rs n ) k : s 3 36,937 40 1,912 34,985 J A S O u e u c l p y t g o t u e b s m e t r b . e _ r _ 3 3 3 3 5 3 6 3 , , , , 5 2 8 3 4 9 3 1 5 4 0 4 1 1 1 1 3 3 5 2 , , , , 6 1 1 7 8 1 3 9 3 8 8 4 1 1 1 1 8 7 9 7 , , , , 4 0 6 5 9 2 8 2 6 9 3 6 2 2 2 3 , , , , 1 7 9 7 1 3 6 0 9 0 8 1 1935._ 10,015 5,313 3,763 939 November 34, 666 13,041 2,990 1936 11,306 507 10,207 592 December. 43,447 17,633 22, 386 1937 19,723 7,379 1,708 10,156 480 1 1 1 9 9 9 3 3 4 8 9 0—Jan.-May 3 1 4 3 3 , , , 5 9 0 8 9 1 5 8 2 1,34 3 1 6 24,6 2 2 1 9 1 1 6 3 1 , , , 5 4 7 3 8 2 9 9 1 2 1 , ,0 4 1 4 3 4 4 9 6 1940— M F J e a a b n r u r c a u h r a y r „ y _ - 3 3 37 7 2 , , , 7 1 7 8 9 6 6 7 9 1 1 1 2 5 4 , , , 2 7 1 0 3 3 1 9 8 1 1 1 9 9 7 , , , 9 3 5 7 4 3 8 4 7 3 3 2 , , , 0 7 0 3 1 6 1 5 9 April 37, 780 15, 519 19,250 3,010 37, 257 14, 536 19, 659 3,063 » Represents banks which, during the periods shown, closed tem- May porarily or permanently on account of financial difficulties; does not include banks whose deposit liabilities were assumed by other banks at 1 Comprises centers foriwhich^bankfdebit 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. 2 Centers (other than the 141 centers) for which bank debits are current- 1 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.—Bee 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. 692 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 banks and such private and industrial banks as are included in abstracts issued by State banking departments. Also includes, during the period June 1934-June 1935, private banks which, pursuant to the provisions of sec. 21 (a) of the Banking Act of 1933, submitted condition reports to the Comptroller of the Currency. Under the amended provisions of sec. 21 (a) private banks no longer report to the Comptroller of the Currency. For comparative figures of private banks included in the figures from June 1934 to December 1935, see Federal Reserve BULLETIN for December 1935, p. 883, and July 1936, p. 535. Figures for nonmember banks are for dates indicated or nearest thereto for which figures are available. NUMBER OF BANKS DEPOSITS, EXCLUSIVE OF INTERBANK DEPOSITS [In millions of dol ars] Nonmember Member banks banks Member banks Nonmember banks Call date Total Other Total ti N on a- al State M s b a a u v n t in u k g s al s m n b o e e m n r - - Call date ba A n l k l s Total Na- State M sav u i t n u g a s l no O n t m he e r mbanks tional 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 5,154 857 579 8,421 Dec. 30. _. 38, 505 23,771 15, 386 8,385 9, 708 5,026 1934—June 30 15,835 6,375 5,417 958 578 8,882 1934—June 30.._ 41,870 26, 615 17,097 9,518 9,780 5,475 Dec. 31 16,039 6,442 5,462 980 579 9,018 Dec. 31.__ 44, 770 28,943 18, 519 10,424 9,828 6,000 1935—June 29 15, 994 6,410 5,425 985 571 9,013 1935—June 29 ._ 45, 766 29,496 19,031 10,465 9,920 6,350 Dec. 31 15,837 6,387 5,386 1,001 570 8,880 Dec. 31__. 48,964 32,159 20,886 11,273 9,963 6,842 1936—June 30 15, 752 6,400 5,368 1,032 566 8,786 1936—June 30. __ 51, 335 34,098 21,986 12,112 10,060 7,178 Dec. 31 15,628 6,376 5,325 1,051 565 8,687 Dec. 31___ 53, 701 35,893 23,107 12, 786 10,143 7,666 1937—June 30 15, 527 6,357 5,293 1,064 564 8,606 1937—June 30.__ 53, 287 35,440 22, 926 12, 514 10, 213 7,635 Dec. 31 15, 393 6,341 5,260 1,081 563 8,489 Dec. 31— 52,440 34,810 22, 655 12,155 10,257 7,373 1938—June 30 15, 287 6,338 5,242 1,096 563 8,386 1938—June 30. _. 52,195 34, 745 22, 553 12,193 10, 296 7,153 Dec. 31 15, 206 6,338 5,224 1,114 556 8,312 Dec. 31... 54,054 36, 211 23,497 12, 714 10,365 7,478 1939—June 30 15,082 6,330 5,203 1,127 553 8,199 1939—June 30 55,992 38,027 24, 534 13,493 10, 521 7,444 Oct. 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. 30 3_____ 15,035 6,362 5,187 1,175 552 8,121 Dec. 303.. 58,344 39, 930 25, 661 14, 269 10,613 7,801 1940—Mar. 263 15,010 6,377 5,178 1,199 551 8,082 1940—Mar. 263.. 59,051 40, 578 25,911 14,667 no ,544 4 7,929 For footnotes see table below. For footnotes see table below. LOANS AND INVESTMENTS [In millions of dollars] All banks Member banks Nonmember banks Call date Mutual savings banks Other nonmember banks Invest- Invest- Total Loans ments Total Loans ments Total Loans I m nv e e n s ts t- Total Loans I m nv e e n s t t s - 1929—June 29 58,474 41, 531 16,943 35,711 25, 658 10,052 9,556 5,892 3,664 13,207 9,981 3,227 Dec. 31 58, 417 41,918 16,499 35,934 26,150 9,784 9,463 5,945 3,518 13,020 9,823 3,197 1933—June 30 40,076 22, 203 17,872 24, 786 12,858 11,928 10,044 5,941 4,103 5,246 3,404 1,841 Dec. 30 40,319 21,977 18, 342 25, 220 12,833 12, 386 9,985 5,906 4,079 5,115 3,238 1,877 1934—June 30. • 42, 502 21, 278 21, 224 27,175 12, 523 14,652 9,904 5,648 4,256 5,423 3,108 2,315 Dec. 31 43, 458 20,473 22,984 28,150 12,028 16,122 9,782 5,491 4,291 5,526 2,955 2,571 1935—June 29 44,416 20, 272 24,145 28, 785 11, 928 16,857 9,852 5,341 4,511 5,779 3,003 2,777 Dec. 31 45, 717 20, 329 25, 388 29,985 12,175 17,810 9,804 5,210 4,594 5,927 2,944 2,983 1936—June 30 48,458 20, 679 27, 778 32, 259 12,542 19, 717 9,961 5,105 4,856 6,238 3,032 3,206 Dec. 31 49, 524 21, 449 28,075 33,000 13,360 19,640 10,060 5,027 5,034 6,464 3,062 3,402 1937—June 30 49, 696 22, 514 27,182 32, 739 14, 285- 18,454 10,180 5,002 5,178 6,778 3,227 3,550 Dec. 31 48, 566 22,198 26,368 31, 752 13,958 17, 794 10,187 4,996 5,191 6,627 3,244 3,383 1938—June 30 47, 381 21,130 26,252 30, 721 12,938 17, 783 10,196 4,961 5,235 6,465 3,231 3,234 Dec. 312 48, 929 21, 354 27, 575 32,070 13, 208 18,863 10,255 4,930 5,325 6,604 3,217 3,387 1939—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 3 50,882 22,167 28, 714 33,941 13,962 19, 979 10,332 4,961 5,371 6,610 3, 244 3,365 1940—Mar. 263 51,154 22,203 28,951 34,163 13, 929 20, 223 410,226 4,922 5,304 4 6,765 3,342 3,424 1 Prior to Dec. 30, 1933, member-bank figures include interbank deposits not subject to immediate withdrawal, which aggregated $103,000,000 on that date. The nonmember bank figures include interbank deposits to the extent that they are not shown separately in a few State bank abstracts. 2 Beginning December 1938 figures of loans and investments exclude approximately $50,000,000 and $100,000,000, heretofore reported as loans and investments, respectively, which indirectly represent bank premises or other real estate and are now classified in condition reports among "Other assets." 3 Figures for "All banks" are preliminary. 4 One bank (with deposits, excluding interbank deposits, of $90,000,000 and total loans and investments of $96,000,000 on December 31, 1939) which was formerly classified as a mutual savings bank is included in the March 26, 1940 figures in "Other nonmember banks" column. Back figures.—Bee Annual Report for 1937 (tables 48-49). JULY 1940 693 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 i Call date T lo a i o n a n t n d - a s l C m c i o i n e a m - r l, - - Open o p s L r u e o r c c c a u a h n r r a s i r t s y i f i e i o n n s r g g Real Loans U. £. G D ov ir e e r c n t mentobligations g S O a t t o a b io f t l e i n - s s Other m ve e s n t t - s Total i t a ri n a d l, m k a e r t - br T o o k- e lo st a a n t s e ba t n o ks loans 4 Total G a u n a - r- p i o c l a i l t- r s i e ti c e u s - i a c g u r l i - - paper a e n rs d oth T e o rs3 Total Billss Notes Bonds teed d su iv b- itural 2 deal- sions ers Total—All Member Banks 1929—Dec. 31. _35, 934 26,150 583 2,463 7,685 3,191 714 11,515 9,784 3,863 249 520 3,094 1,393 4,528 1933—June 30 24 786 12 858 595 953 3 752 2 372 330 4 857 11 928 6,887 1 113 2,049 3, 725 1,744 3,297 1938—Mar. 7— 31, 521 13, 546 607 878 2,665 2,556 96 6,745 17, 975 10, 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 10, 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 10, 713 313 3,707 6,693 2,298 2,317 3,361 Dec. 31- 32,070 13,208 5,448 442 973 775 2,716 125 2,728 18, 863 10,882 286 3,389 7,208 2,340 2,448 3,192 1939—Mar. 29..32,095 13,047 5,531 427 838. 733 2,749 99 2,671 19,048 10,691 303 2,604 7, 783 2,660 2,555 3,142 June 30.. 32,603 13,141 5,571 420 731 736 2,828 58 2,796 19,462 10, 946 441 2,720 7,786 2,831 2,554 3,131 Oct. 2 6_ 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. 266 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 1,560 834 495 727 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 1939—Mar. 29.. 8,408 3,086 1,456 126 668 209 124 77 427 5,322 2,939 68 831 2,040 1,086 582 714 June 30. _ 8,688 2,988 1,479 128 555 215 130 41 440 5,700 3,360 168 908 2,284 1,123 480 736 Oct. 2«__ 9,044 3,116 5,928 3,401 1,157 662 708 1940— D M ec a . r . 3 2 0 6 . 6 _ 9 9 , , 3 5 3 9 9 4 3 3 , , 2 2 1 9 1 6 1,776 120 611 188 133 44 425 6 6 , , 0 38 4 3 3 3 3 , , 6 4 8 9 6 7 315 797 2,385 1 1 , , 2 2 7 8 5 6 7 5 2 7 6 9 6 6 9 8 3 6 City of Chicago 7 1929—Dec. 31 1,757 1,448 19 251 533 21 88 535 309 116 3 19 94 96 96 1933—June 30. 1,287 677 70 61 251 30 30 237 610 384 206 82 97 87 138 1938—Mar. 7... 1,997 614 27 39 113 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 12 313 535 122 140 159 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. 26_. 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. 266 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 2,752 743 775 950 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. 266 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 1,585 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 6__10,102 ! 4,665 5,437 2,383 699 1,058 1,297 Dec. 30- 10, 224 4, 768 1,646 163 20 224 1,477 4 1,234 5,456 2,434 31 431 1,972 725 1,061 1,236 1940—Mar. 266 10,194 4,860 5,334 2,341 719 1,076 1,197 1 Classifications indicated were revised as of Dec. 31,1938; for explanation 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. 4 This is a residual item and, because of the revised loan classifications, figures beginning Dec. 31, 1938, are not comparable with earlier figures. 5 Includes Treasury certificates of indebtedness through 1934. 6 Breakdown of loans and investments not reported separately. 7 Central reserve city banks. Back figures.—See Annual Report for 1937 (tables 52-58). 694 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] r>emanddeposits, Time deposits, Interbank except interbank except interbank deposits> Reserves Bal- De- Indi- Indi- Domestic B s w F e a R e e r n r i e a t v d k - h l e - s v C a i a n u sh lt b m a w a n d e n o i c s - t k e h t s s ic l j m p u o s a d a e t s d - n e i - d t d s 2 s p p u v n h a c o a a i o e n i r d l r p r r d s a t - - s - , - - , S p s d s a ii t i u o n i c a o n b v l na - t n d i i e il t s - - s c C h c e a o f e e e i t f n e c r f c r d i d t . s k - 3 i ' - s m U G e e . r o n n S v t - . 4 - s p p u v n h a c o a a o i n e i r d l r p r r d s a t - - - s - , - , S p s d s a i i t i o u c c i a o n b v l a a - t n d i i e l i t s - - s P in o g s s t a 4 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 r g - - s c C o i a a t u c p a - - n l ts Call date tions 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 6,709 1929—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 5,352 1938—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 2,080 538 707 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 6,510 132 511 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 1939— 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 6 5,304 25,118 23,983 2,390 666 675 11,104 418 51 6 8,243 6 142 6 757 5 5,530 Oct. 2 11, 604 841 5,506 25, 681 24,604 2,321 563 743 11,215 432 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 6 8,717 6 145 6 737 2 5,562 1940—Mar. 26 New York City 5 827 68 179 4,750 5,847 128 1,180 20 1,112 33 18 1,198 40 597 179 2,105 1929—Dec. 31 846 46 101 4,358 4,676 96 461 332 671 4 110 1,255 22 128 8 1,582 1933—June 30 2,941 59 95 6,336 6,429 185 327 360 694 67 2,173 334 12 1,596 1938—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 1939—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 M09 8,676 8,812 321 349 72 683 52 63, 568 6 670 1 1,587 Oct. 2 5,915 89 125 8,899 9,030 251 178 74 693 43 3,542 1 695 1,592 Dec. 30 6,386 84 6 163 9,562 9,652 219 260 68 742 35 6 3, 629 6 1 6672 1,601 1940—Mar. 26 City of Chicago 5 169 13 133 957 1,041 42 32 8 332 58 2 310 19 33 41 316 1929—Dec. 31 232 34 203 912 870 87 16 46 358 1 6 259 2 204 1933—June 30 566 22 135 1,372 1,270 170 17 92 445 16 576 7 245 1938—Mar. 7 936 31 208 1,523 1,386 221 23 86 443 16 688 6 249 June 30 856 32 198 1,585 1,455 204 24 62 439 21 636 10 256 Sept. 28 884 35 235 1,688 1,597 181 29 83 452 9 658 9 257 Dec. 31 705 22 178 1,250 1,182 141 26 83 452 12 834 10 261 1939— Mar. 29 897 26 235 1,666 1,565 197 22 60 471 17 746 12 270 June 30 1,080 37 6 237 1,747 1,632 195 27 60 469 21 3 6 853 6 14 270 Oct. 2 993 42 283 1,739 1,676 167 24 80 483 10 3 879 9 250 Dec. 30 909 25 6 195 1,544 1,503 133 18 80 482 11 5 3 997 3 7 253 1940—Mar. 26 Reserve City Banks 751 156 947 5,229 5,547 423 300 76 4,433 371 41 1,604 30 64 292 2,029 1929—Dec. 31 705 122 1,002 3,764 3,708 349 108 312 2,941 208 388 1,315 59 15 16 1,533 1933—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 1938—Mar. 7 2,289 300 1,951 6,934 6,668 812 146 266 4,238 262 31 2,514 113 32 1,753 June 30 2,311 322 1,862 7,078 6,843 711 120 356 4,209 233 23 2,557 107 43 1,764 Sept. 28 2,354 321 1,940 7,214 7,034 796 170 424 4,233 269 17 2,719 108 57 1,777 Dec. 31 2,459 342 2,106 7,326 6,899 889 123 420 4,276 243 22 2,813 108 64 2 1,795 1939—Mar. 29 2,735 318 2,210 7,654 7,331 917 160 415 4,320 233 19 2,920 115 69 1,812 June 30 3,053 323 6 2,485 8,017 7,803 801 158 410 4,319 198 14 6 3, 307 6 116 6 71 1,821 Oct. 2 3,118 348 2,485 8,176 8,002 813 190 435 4,362 240 14 3,516 117 53 1,828 Dec. 30 3,336 364 6 2,632 8,400 7,978 942 150 431 4,386 214 12 6 3, 525 6 115 6 56 1,833 1940—Mar. 26 Country Banks 627 321 908 5,711 5,091 742 169 39 6,390 133 61 405 6 3 367 2,258 1929—Dec. 31 452 203 702 3,054 2,576 555 72 116 3,833 86 285 228 7 1 167 1,517 1933—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 1938—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 ;L, 353 322 1,956 6,224 5,215 1,128 154 143 5,509 147 44 446 23 2 6 1,798 Dec. 31 L, 367 350 1,963 6,183 5,087 1,176 114 137 5,557 153 46 438 25 2 5 1,818 1939—Mar. 29 1,403 307 2,117 6,255 5,272 1,130 135 136 5,619 145 40 439 26 2 5 1,828 June 30 L, 555 329 6 2, 473 6,677 5,736 1,073 131 133 5,632 148 35 6 515 6 26 62 4 1,852 Oct. 2 ,578 363 2,614 6,866 5,896 1,090 172 154 5,677 140 35 571 26 2 3 1,851 Dec. 30 ,648 389 6 2, 645 6,954 5,832 1,205 131 147 5,757 151 35 6 566 6 29 62 2 1,875 1940—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 Reserve Banks (transit account)," known as "Due to Federal Reserve Banks (deferred credits)" prior to Dec.31,1935. 4 U. S. Treasurer's time deposits, open account, are combined with postal savings (time) deposits. 5 Central reserve city banks. 6 Partly estimated Back figures—See Annual Report for 1937 (tables 52-58). 695 JULY 1940 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. S. Government obligations Com- purchasing Total mer- or carrying Date or month m l v o a e i e n a n n s n d - t t - s s Total t d c a r i u i 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 s l e b L a o t n o a k n s s O lo t a h n e s r Total 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- a e n r d s ot T h o ers Total Bills Notes Bonds teed tural dealers Total—101 Cities 1939—May 21,693 8,091 3,839 303 678 539 1,151 1,523 3,602 8,296 2,033 5,865 2,033 3,273 1940—January... 23,157 8,587 4,331 320 651 496 1,184 1,556 4, 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 4,700 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 .4, 776 8,904 627 1,776 6,501 2,384 3,488 April 23. 489 8.646 4,414 335 624 474 1.182 1, 569 4,843 8,941 575 1,839 6,527 2,398 3,504 May 23, 555 8,599 4, 397 327 574 475 1,191 1,588 4,956 9,053 1,905 6,510 2,407 3,496 Apr. 3.. 23,315 8,649 4,414 337 625 476 1,185 1,561 .4, 666 509 1,821 6,518 2,380 3,438 Apr. 10. 23, 466 8,631 4,393 339 630 474 1,179 1,567 .4, 835 587 1,822 6,529 2,379 3,518 Apr. 17.. 23, 589 8,653 4,430 331 474 1,183 1,569 .4,936 1,002 608 1,840 6, 554 2,406 3,528 Apr. 24.. 23, 584 8,650 4,419 332 473 1,182 1,578 .4, 934 8,975 596 1,871 2, 427 3,532 May I.... 23, 542 8,661 4,409 326 626 474 1,187 1,587 .4, 881 8,960 593 1,871 6,496 2,427 3,494 May8.__. 23, 576 8,654 4,404 331 618 473 1,193 1,584 4, 922 9,032 646 1,900 2,434 3,456 May 15_. 23, 592 8,643 4,414 328 602 473 1,191 1,592 :4,949 1,088 650 1,909 6,529 2,387 3,474 May 22.. 23,544 8,562 4,391 327 544 474 1,193 1,589 4, 982 1,105 673 1,919 6, 513 2,389 3,488 May 29_. 23, 524 8,475 4,367 322 478 481 1,189 1,592 .5,049 9,081 627 1,926 6,528 2,399 3,569 June 5 23,527 8,435 4,368 318 437 475 1,195 1,604 :5, 092 9,163 1,928 6,537 2,401 3,528 June 12. ._. 23,661 8,469 4,377 317 444 472 1,198 1,619 [5,192 9,214 750 1,933 6,531 2,400 3,578 June 19 23,596 8,444 4,387 309 413 470 1,199 1,618 15,152 9,226 785 2,058 6,383 2,400 3,526 New York City 1939—May 7,958 2,759 1,372 120 529 168 111 385 5,199 3,024 170 727 2,127 1,034 1,141 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 1,686 111 482 160 119 366 6,143 3,585 170 888 2,527 1,253 1,305 May 9,172 2,905 1,673 108 433 160 120 371 6,267 3,720 242 950 2,528 1,275 1,272 Apr. 3— 9,025 2,976 1,693 112 481 162 118 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 1,689 109 480 159 119 368 6,198 3,604 163 921 2,520 1,278 1,316 May 1... 9,121 2,958 1,679 108 476 160 120 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 2,869 1,671 107 403 160 120 371 6,296 3,767 258 962 2,547 1,268 1,261 May 29.. 9,219 2,802 1,658 105 350 159 121 370 6,417 3,820 287 2,564 1,275 1,322 June 5... 9,228 2,760 1,656 104 312 159 121 376 6,468 3,894 365 969 2,560 1,279 1,295 June 12.. 9,307 2,777 1, 668 103 312 159 122 378 6,530 3,928 398 971 2,559 1,279 1,323 June 19.. 9,241 2,764 1,672 294 160 122 376 6,477 3,928 409 1,000 2,519 1,279 1,270 Outside New York City 1939—May 13, 735 5,332 2,467 183 149 341 1,040 1,138 8,403 5,272 228 1,306 3,738 2,132 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 8,808 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 May 14,383 5,694 2, 724 219 141 315 1,071 1,217 5,333 396 955 3,982 1,132 2,224 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 May 1— 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 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 May 29.. 14, 305 5,673 2,709 217 128 322 1,068 1,222 8,632 5,261 340 957 3,964 1,124 2,247 June 5—. 14,299 5,675 2,712 214 125 316 1,074 1,228 8,624 5,269 333 959 3,977 1,122 2,233 June 12.. 14.354 5,692 2,709 214 132 313 1,076 1,241 8,662 5,286 352 962 3,972 1,121 2,255 June 19.. 14.355 5,680 2,715 210 119 310 1,077 1,242 8,675 376 1,058 3,864 1,121 2,256 NOTE.-—For description of figures see BULLETIN for November 1935 (pp. 711-738) or reprint, 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. 696 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 a R e e r n r i e a d t v - k h l - e s v C a i a n u s l h t b m a w a n d e n o i c s t - e k h ti s s c j m p u o s a d a t e d s e n - i - d t d s s p p u v h n a c o a a o n i i e r p d l r r r d a s t - - s - - , - , S p s d s a i i t o u i c a o n b v l a t n d i - e i l t s - - s c C h c o e a f e e e i t f n c c e l r r S . d t k d s i - ' ! - r U G n e . e r o n n S v ' t - 5 s p p u h n v a c o a a o i n e i r p d l r r r d a s t s - - - - , - , S p s d s a i i t o u i c o a n v b l a t n d i - i e l t - s - s P in s o a g s v s t - a : ; De- bank 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 a t u c p a - n - l t! Date or month tions tions Total 101 Citiet 8,361 2,644 16, 796 16, 259 1,452 441 581 251 6,530 118 639 3,712 1939—May 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 5,067 199 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 20 8,295 117 725 3,735 April 11,032 3,240 19,971 19,460 1,540 481 560 5,119 192 8,380 115 708 3,750 May 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, 46218, 968 1,430 449 560 5,168 189 8,212 116 722 3,733 Apr. 10 1 1 0 0 , , 8 7 6 2 9 9 4 4 6 7 2 1 3 3, , 1 2 9 3 4 9 1 19 9 , , 6 7 5 6 5 4 1 1 9 9 , , 2 2 3 8 4 8 1 1 , , 4 4 0 3 0 3 4 4 5 8 7 2 5 5 5 6 9 2 5 5, , 1 1 2 2 7 8 1 1 8 8 5 2 8 8, , 3 3 1 4 6 8 1 1 1 1 6 6 7 7 1 3 7 4 3 3 , , 7 7 4 3 1 4 A A p p r r . . 1 2 7 4 10, 859 447 3,177 19, 696 19, 253 1, 524 5,121 183 8,344 116 720 3,748 May 1 10,851 479 3,185 19, 74119,073 1, 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 20,201 19, 659 1,528 510 559 5,117 193 8,371 115 692 3,752 May 22 11, 203 3,285 20, 287 19, 696 1,578 456 560 5,120 191 8,316 115 707 3,747 May 29 11,308 483 3,243 20, 306 19, 647 1,541 391 563 5,127 8,372 116 700 3,755 June 5 11,429 507 3,255 20, 615 20,263 1,531 392 561 5,123 186 8,334 115 687 3,784 June 12 11, 595 3,279 20,495 20,023 1,438 411 561 5,125 178 8,424 110 687 3,783 June 19 New York City 4,895 77 7,467 7,495 304 274 578 42 2,814 560 1,488 L939—May 6,853 8,515 8,663 200 280 617 3,471 675 1,487 L940—January 6,055 8,796 8,887 230 238 613 3,473 682 1,490 February 6,153 8,979 9,112 210 276 658 3,529 672 1,490 March 6,259 95 9,087 9,154 246 282 661 3,640 663 1,496 April 6,384 87 9,203 267 292 634 3,727 650 1,502 May 6,201 131 9,054 9,126 216 271 683 3,576 664 1,494 Apr. 3 6,254 82 9,067 9,106 288 286 686 3,595 660 1,495 Apr. 10 6,246 83 9,106 9,205 238 265 637 3,680 655 1,495 Apr. 17 6,335 81 9,121 9,178 242 304 639 3,711 672 1,498 Apr. 24 6,336 81 9,082 9,2S9 327 320 633 3,724 1,502 May 1 6,235 82 9,059 9,078 234 215 631 3,707 655 1,503 May 8 6,388 87 9,147 9,312 266 341 632 3,786 652 1,502 May 15 6,499 87 9,332 9,415 251 326 632 3,725 636 1,502 May 22 6,460 9,393 9,486 260 256 642 3,696 647 1,468 May 29 6,470 9,415 9,462 218 205 647 3,682 642 1,504 June 5 6,545 9,518 9,776 204 222 644 635 1,500 June 12 6, 745 },541 9,621 215 223 3,787 633 1,501 June 19 Outside New York City 3,466 367 2,567 9,329 64 1,148 167 496 4,406 209 3,716 118 2,224 939—May 4,212 406 3,007 10, 431 .0,027 1,047 185 519 4,440 166 4,484 123 2,226 940—January 4,218 394 3,023 L0, 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 0, 428 9,904 1,157 179 516 4,486 159 4,655 117 2,239 April 4,648 395 3,153 L0, 768 .0,154 1,273 189 516 4,485 166 4,653 115 2,248 May 4,236 376 3,168 10,121 9,617 1,135 184 516 4,482 161 4,730 117 2,238 Apr. 3 4,357 395 3,103 0, 395 9,862 1,142 163 516 4,482 162 4,617 116 2,238 Apr. 10 4,483 381 3,156 0,549 L0,083 1,162 192 514 4,491 155 4,668 116 2,239 Apr. 17 4,534 394 3,113 0,643 [0, 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 4,662 115 249 May 8 4,662 395 3,197 0, 781 0,308 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 4,646 115 250 May 22 4,743 401 3,189 0,894 0,210 1,318 200 516 4,478 166 4,620 115 2,249 May 29 4,838 402 3,157 0,891 0,185 1,323 186 519 4,480 164 4,690 116 251 June 5 4,884 424 3,175 1,097 0, 487 1,327 170 518 4,479 160 4,645 115 284 June 12 4,850 419 3,198 0,954 0, 402 1,223 188 518 4,479 156 4,637 110 282 June 19 1 Demand deposits other than interbank and U. B. 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 JULY 1940 697 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. Governmentobligations Com- purchasing 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 T l v o a i o e e n a n s t n n d - a t t s - l s Total t m d c a r i i u i n n e a a s d r - l l - , - , p O m k a p p a e e r t e - n r b o T s r r o o e c c a u r r r i y ti i e n s g e l R o st a e a n a t l s e L ba 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 - - k a e n r d s ot T h o ers Total Bills Notes Bonds teed tural dealers Boston (6 cities) May 29 1,191 618 299 70 16 18 81 1 133 573 395 14 38 343 48 130 June 5 1,190 613 298 66 15 19 81 1 133 577 396 16 38 342 48 133 June 12 1,193 616 296 68 18 19 80 1 134 577 396 16 38 342 48 133 June 19 1,189 613 297 67 15 18 80 1 135 576 395 16 38 341 48 133 New York (8 cities)* May 29 10,074 3,145 1,771 111 355 211 197 39 461 6,929 4,103 290 1,005 2,808 1,350 1,476 June 5 10,084 3,105 1,770 110 317 211 197 32 468 6,979 4,176 367 1,005 2,804 1,354 1,449 June 12__. . 10,165 3,122 1,782 109 317 211 198 35 470 7,043 4,209 400 1,008 2,801 1,355 1,479 June 19 10,106 3,110 1,786 104 299 212 199 41 469 6,996 4,208 411 1,054 2,743 1,356 1,432 Philadelphia (4 cities) May 29 1,176 447 209 30 24 32 50 1 101 729 354 31 323 • 91 284 June 5 1 183 454 212 31 24 33 50 1 103 729 354 32 322 91 284 June 12 1,184 455 213 31 26 32 50 1 102 729 354 32 322 91 284 June 19 1 180 452 215 30 22 32 50 1 102 728 353 33 320 91 284 Cleveland (10 cities) May 29 1,894 703 271 7 20 31 169 1 204 1,191 780 11 157 612 124 287 June 5_ .. 1,892 705 272 7 20 24 176 1 205 1,187 779 11 157 611 122 286 June 12 1,895 704 272 6 20 24 176 1 205 1,191 778 11 156 611 122 291 June 19 1,887 701 270 6 19 24 175 1 206 1,186 771 11 159 601 122 293 Richmond (12 cities) May 29 697 271 122 11 3 15 42 78 426 306 143 163 53 67 June 5 699 271 123 10 3 14 43 78 428 307 143 164 53 68 June 12 699 270 121 10 3 14 43 79 429 307 143 164 53 69 June 19 705 272 123 10 3 14 43 79 433 310 178 132 53 70 Atlanta (8 cities) May 29_ 627 306 156 3 5 11 32 1 98 321 150 2 35 113 65 106 June 5 626 306 155 4 5 11 32 99 320 150 2 35 113 65 105 June 12 629 308 151 4 5 11 32 1 104 321 150 2 35 113 65 106 June 19 . 616 307 152 4 5 11 32 1 102 309 141 2 37 102 62 106 Chicago (12 cities)* May 29— 3,295 946 573 39 32 75 118 109 2,349 1,546 221 289 1,036 267 536 June 5 3,293 949 579 39 29 75 118 109 2,344 1,548 223 289 1,036 266 530 June 12 _ 3,324 953 579 38 32 74 119 111 2 371 1,576 253 288 1,035 265 530 June 19 3, 351 960 591 38 28 73 119 111 2,391 1,603 277 316 1,010 267 521 St. Louis (5 cities) May 29 729 328 185 10 4 13 53 2 61 401 216 40 32 144 68 117 June 5 718 325 183 9 4 13 53 2 61 393 216 30 32 154 68 109 June 12 _ 707 324 182 9 3 13 54 1 62 383 207 21 33 153 68 108 June 19 708 321 179 9 3 13 54 1 62 387 210 20 38 152 69 108 Minneapolis (8 cities) May 29 399 189 95 4 1 7 11 71 210 143 29 114 22 45 June 5 395 187 94 4 1 7 11 70 208 142 29 113 22 44 June 12 399 191 97 4 1 7 10 72 208 142 29 113 22 44 June 19 399 191 97 3 1 7 11 72 208 142 29 113 22 44 Kansas City (12 cities) May 29 691 302 178 22 4 10 29 59 389 172 17 68 87 69 148 June 5 692 300 177 21 4 10 29 59 392 177 17 68 92 69 146 June 12 686 300 176 21 4 10 29 1 59 386 173 14 68 91 68 145 June 19 684 298 175 21 3 10 29 1 59 386 174 14 69 91 67 145 Dallas (9 cities) May 29 522 266 176 2 3 13 22 1 49 256 151 27 40 84 47 58 June 5 523 266 173 2 4 13 22 1 51 257 151 27 41 83 48 58 June 12 523 267 175 2 4 13 22 1 50 256 151 27 41 83 47 58 June 19 . 521 265 174 2 3 13 22 1 50 256 150 28 41 81 48 58 San Francisco (7 cities) May 29 2,229 954 332 13 11 45 385 168 1,275 765 5 59 701 195 315 June 5 2,232 954 332 15 11 45 383 168 1,278 767 5 59 703 195 316 June 12 2 257 959 333 15 11 44 385 171 1 298 771 6 62 703 196 331 June 19 2,250 954 328 15 12 43 385 171 1,296 769 6 66 697 195 332 City of Chicago* May 29 2,180 586 412 19 27 65 17 46 1,594 1,093 221 159 713 135 366 June 5 2,175 589 417 19 25 65 17 46 1,586 1,094 222 159 713 134 358 June 12 _.. 2,200 588 413 18 28 64 17 48 1,612 1,123 250 158 715 134 355 June 19 __ 2,223 597 425 18 24 63 18 49 1,626 1,146 272 160 714 134 346 * 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. 698 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 Reserves Bal- De- Indi- Indi- Domestic B s w F e a R e e r i e n r a t - d v k h l - e s v C a i a n u s l h t b m a w a n d e o n i c s - t e k h ti s s c j m p u o s a d a e t s d - n e i - t d d s 1 s p u p v n h a c a o a i e o n i d l r r p r r d s a t - - - s - , - , S p s d s a i t o u i c i a o n b v l a - t n i d i e l t - s - s c C h c a o f e e e e i t f n c e c f r r . i d s t d k - i ' s - , m U G e . e S r o n . n v - t - 3 s p p u v n h a c o a a i o n e i d r r l p r r d a s t - - - s - , - , S p s d s a i t i u o c i a o n b v l a t - n i d e i l t s - - s P in s o a g s v s t - a 2 l m D a e b - n a d nks Time ba F ei n o g k r n - s r B i o n o w g r s - - c C o i a a t u c p a - - n l ts d F i e s d tr e i r c ( a 1 t l 9 a 4 R n 0 d ) e se d r a v t e e tions tions Boston (6 cities) 544 142 168 1,230 1,186 95 18 13 233 2 1 351 19 1 246 May 29 568 144 170 1,251 1,207 90 17 13 233 2 1 355 21 1 247 June 5 569 146 177 1,264 1,226 85 19 13 233 2 1 361 16 247 June 12 582 145 180 1,258 1,223 90 27 13 232 2 2 375 17 245 June 19 New York (8 cities)* 6,624 103 231 10,103 9,981 500 276 64 1,008 32 7 3,772 16 648 1,621 May 29 6,626 100 218 10,120 9,954 462 221 64 1,013 32 7 3,760 16 643 1,627 June 5 6,708 103 213 10, 259 10,293 459 237 63 1,010 32 7 3,767 16 636 1,623 June 12 6,929 99 220 10, 202 10,134 379 244 64 1,013 28 7 3,864 16 634 1,624 June 19 Philadelphia (4 cities) 500 20 234 1,041 1,015 88 12 53 259 3 409 12 5 216 May 29 489 20 212 1,006 991 69 8 54 260 3 415 12 5 217 June 5 495 23 215 1,021 998 85 11 54 259 3 416 12 4 217 June 12 494 20 221 1,017 995 83 9 54 258 3 419 9 4 215 June 19 Cleveland (10 cities) 647 45 345 1,380 1,349 114 22 47 720 26 421 37 1 380 May 29 664 46 342 1,380 1,331 113 20 47 721 26 432 38 1 380 June 5 657 49 349 1,389 1,371 106 18 47 720 25 431 37 1 380 June 12 667 46 348 1,383 1,352 106 19 47 719 26 431 37 1 380 June 19 Richmond (12 cities) 187 22 247 515 501 55 11 33 199 3 1 300 6 1 97 May 29 206 22 248 528 499 63 15 33 199 3 1 312 6 97 June 5 201 23 248 531 512 58 12 33 199 3 1 307 6 98 June 12 193 22 245 522 507 53 15 33 199 3 1 305 5 100 June 19 Atlanta (8 cities) 149 13 239 432 395 78 4 43 186 5 2 300 3 1 95 May 29 151 13 242 427 399 76 5 42 186 5 2 311 3 1 95 June 5 150 14 236 431 411 71 4 43 186 5 2 303 3 1 94 June 12 136 25 244 429 402 70 5 43 186 5 2 295 3 2 95 June 19 Chicago (12 cities)* 1,487 73 636 2,805 2,621 316 55 127 955 12 7 1,231 10 9 396 May 29 1,513 71 611 2,785 2,575 338 40 128 955 12 7 1,248 10 8 397 June 5 1,543 75 585 2,816 2,639 341 35 127 955 12 7 1,257 10 8 397 June 12 1,499 72 572 2,786 2,606 331 35 128 955 11 7 1,245 10 8 397 June 19 St. Louis (5 cities) 199 12 161 396 397 45 7 15 188 3 2 417 1 94 May 29 234 12 178 450 451 45 10 15 188 3 2 405 1 94 June 5 219 13 185 477 483 45 6 15 188 3 2 360 1 94 June 12 219 12 183 483 482 43 7 15 188 3 2 351 1 94 June 19 Minneapolis (8 cities) 100 7 121 297 266 53 7 4 116 1 155 2 2 59 May 29 102 7 125 292 259 55 6 6 116 161 2 1 59 June 5 101 8 128 297 268 55 6 5 116 1 163 2 1 60 June 12 96 7 133 300 263 61 6 5 116 1 159 2 1 59 June 19 Kansas City (12 cities) 191 15 290 530 497 76 10 23 142 3 1 396 7 106 May 29 187 15 289 517 495 71 11 23 142 3 1 405 105 June 5 194 16 302 537 519 71 10 23 143 3 1 399 7 106 June 12 191 16 311 531 518 72 9 23 143 3 1 410 6 106 June 19 Dallas (9 cities) 139 11 299 481 455 50 9 31 127 9 260 1 88 May 29 141 10 294 471 457 50 12 31 127 9 1 266 1 88 June 5 150 12 297 492 472 49 10 31 127 9 1 259 1 88 June 12 140 11 305 483 468 45 11 31 127 8 1 262 1 89 June 19 San Francisco (7 cities) 4 4 2 3 7 6 2 2 3 5 3 3 1 1 4 4 1 1, , 0 0 7 7 9 7 l 1 ;0 ,0 3 2 3 9 1 1 0 0 9 8 2 2 6 5 1 1 0 0 7 7 9 98 8 7 7 9 9 1 3 3 3 0 0 2 4 2 2 1 1 2 1 0 9 3 3 4 4 9 9 J M un ay e 5 29 442 25 320 1,101 1,071 106 24 107 987 89 311 21 19 380 June 12 449 24 317 1,101 1,073 105 24 105 989 86 308 21 19 379 June 19 City of Chicago* 1,149 39 308 1,919 1,817 181 40 79 492 11 5 939 8 254 May 29" 1,174 39 293 1,909 1,775 214 25 79 493 11 5 954 8 254 June 5 1,202 40 256 1,912 1,804 215 20 79 493 11 5 969 7 254 June 12 1,159 40 257 1,897 1,795 203 19 79 494 10 5 959 7 254 June 19 * See note on preceding page. 1 Demand deposits other than interbank and U. S. Government, less cash items reported as in process of collection. 2 U. S. Treasurer's time deposits, open account, are combined with postal savings (time) deposits. JULY 1940 699 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 Commercial Accepting banks Federal Reserve Goods stored in or End of month paper Total Banks shipped between out- out- Im- points in stand- stand- For ac- ports Exports Dollar ing i ing Total O bi w ll n s bo B u il g ls ht o c w F o n u o n r a t c- c f s o c o p e o u r o n e r n n i r t t g s e d o n - - f Others U S i n t n a i t t t o e e s d U S fr n t o a i t m t e e s d ch e a x n - ge U St n a i t t e e s d F c o t o r r i u e e i n s g - n 1939—February.. 195 248 198 122 87 54 March 191 245 191 117 87 56 April.—... 192 238 189 118 86 57 May 189 247 192 124 82 59 June 181 245 191 122 81 60 July 194 236 188 119 75 61 August 201 235 191 128 79 59 September 209 216 177 115 78 36 October,... 205 221 179 111 85 32 November. 214 223 172 103 96 24 December_ 210 233 175 105 103 22 1940—January,... 219 229 179 111 101 23 February.. 226 233 188 123 95 27 March 233 230 184 121 90 30 April 239 223 178 118 33 May 234 214 171 113 34 1 As reported by dealers; includes some finance company paper sold in open market. 2 Less than $500,000. Back figures.—See Annual Report for 1937 (table 70). CUSTOMERS' DEBIT BALANCES, MONEY BORROWED, AND PRINCIPAL RELATED ITEMS OF STOCK EXCHANGE FIRMS CARRYING MARGIN ACCOUNTS [Member firms of New York Stock Exchange. Ledger balances in millions of dollars] Debit balances Credit balances Customers' credit balances i Other 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 c a a e c r n s t t o r n t c u a m e e n d s r e t i s s n i n ' 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 t c u m a m e d n s e t i s n i n n 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 2 Free O (n th et e ) r m p i a e n r n v t I t n n e a e st n r - s d ' m i e n f n v i I t r n e m a st n - d a c c a c p I o n i u t n al ts trading trading (net) accounts accounts 1937—June 1,489 161 214 1,217 25 397 September. 1,363 128 239 1,088 256 26 385 December. 108 232 278 26 355 1938—March 831 95 215 576 239 25 315 June --- 774 88 215 495 258 22 298 September. 823 76 213 559 257 20 300 December. 991 106 190 754 247 22 305 1939— March 84 174 699 225 20 294 April 831 83 190 579 236 20 290 May 828 76 183 561 230 21 284 June 834 73 178 570 230 21 280 July 839 84 183 589 238 20 278 August 792 71 202 556 235 20 275 September. 856 64 217 520 305 22 283 October _ _ _ 894 72 200 577 289 21 284 November. 914 77 195 623 272 21 282 December . 78 207 637 266 23 277 1940—January _ _. 70 602 262 22 272 February.. 72 195 616 253 23 271 March 78 186 615 247 21 270 April 910 72 192 626 252 21 271 May 702 67 239 459 251 22 274 * Excluding balances with reporting firms (1) of member firms of New York Stock Exchange and other national securities exchanges and (2) of firms' own partners. 2 Includes both money borrowed from banks and trust companies in New York City and elsewhere in the United States and also money borrowed from other lenders (not including member firms of national securities exchanges). NOTE.—For explanation of these figures see "Statistics on Margin Accounts" in BULLETIN for September 1936. The article describes the method by which the figures are derived and reported, distinguishes the table from a "statement of financial condition," and explains that the last column is not to be taken as representing the actual net capital of the reporting firms. Back figures.—See BULLETIN for March 1938, p. 196, and (for data in detail) Annual Report for 1937 (table 69). 700 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 1 on— Average rate on- [Per cent per annum] Aver- 7 other u. s.Treas- age New North- 11 Southmo Y w n e e t a e h r k , , or m m p P 4 c a r o e o t i p r n o m m c e t i r - h e 6 a , s la b a P c d n e a c r 9 a r c n i e s y 0 m e ' k p s s - t e , - c l S h t d o i t e a a a 9 o m x n n y 0 c - e g s s k , e c S h n l c o t e r a a e o a e x a l n w - l s c n - l g k - e , w i f N s e i s o r t e u u f e h w - e r d i y s n bi d l q d e l 9 u e s r a 1 o s a - y ' - l- y T i U 3 n e y u r - o l . e e t r d o t a y a e S - r s o s 5 . - n 1 1 1 9 9 9 3 3 3 4 5 6 a a a v v v e e e r r r a a a g g g e e e 19 T o c t 3 2 2 i a t . . . i 4 9 6 l e 5 3 8 s Y C o i 2 t 1 1 r y k . . . 7 7 4 6 2 5 e E r c a n i s t t i 3 3 3 a e e . . . n s r 3 0 7 n d 9 4 1 W er c n e i s ti t a e e 4 3 3 n s r . . . d n 7 3 4 6 2 0 period2 tation 1937 average 2.59 1.73 2.88 3.25 1938 average __.. 2.53 1.69 2.75 3.26 1939 average l 2.78 2.07 2.87 3.51 1937 aver age.. _ .95 .43 1.25 1.00 .447 .28 1.40 1938 average... .81 .44 1.25 1.00 .053 .07 .83 Monthly figures 1939 average... .59 .44 1.25 1.00 .022 .05 .59 1938—January 2.60 1.70 2.92 3.28 February 2.49 1.70 2.65 3.21 1939—May .56 .44 1.25 1.00 .006 .03 .42 March 2.48 1.65 2.64 3.28 June .56 .44 1.25 1.00 .006 .03 .39 April 2.48 1.70 2.60 3.25 July .56 .44 1.25 1.00 .017 .04 .45 May 2.48 1.70 2.64 3.20 Aug. _ .56 .44 1.25 1.00 .046 .05 .48 June 2.56 1.70 2.78 3.31 Sept .69 .44 1.25 1.00 .102 .14 1.07 July _— 2.57 1.70 2.78 3.35 Oct. .69 .44 1.25 1.00 .028 .05 .77 August 2.52 1.67 2.71 3.28 Nov .63 .44 1.25 1.00 .018 .05 .64 September... 2.53 1.70 2.74 3.26 Dec. .56 .44 1.25 1.00 .012 .04 .51 October 2.57 1.70 2.90 3.21 1940—Jan .56 .44 1.25 1.00 .001 .01 .47 November... 2.49 1.70 2.68 3.20 Feb .56 .44 1.25 1.00 .004 .02 .46 December 2.60 1.70 2.95 3.23 Mar .56 .44 1.25 1.00 (3) .02 .42 April .56 .44 1.25 1.00 .003 .02 .45 1939—January 2.64 1.73 2.97 3.32 May .56 .44 1.25 1.00 .042 .06 .65 February... _. 2.52 1.70 2.69 3.26 Week ending: Quarterly figures May 25—_ Vi. IX 1.00 .067 .08 .77 1938—September... 2.65 2.00 2.75 3.25 June 1 7A« IX 1.00 .089 .10 .83 1939—March 2.95 2.13 3.05 3.77 June 8 1% 1.00 .118 .11 .84 June 2.91 2.15 3.05 3.62 J J u u n n e e 2 1 2 5 H-H- 7/i. I I X X 1 1 . . 0 0 0 0 . . 0 04 9 6 5 . . 1 0 2 9 . . 7 8 2 0 S D e e p ce te m m b b er er... 2 2 . . 6 5 8 9 2 1 . .9 0 6 4 2 2 . . 7 5 8 9 3 3. . 3 3 2 1 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. 3 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 YIELDS* [Per cent per annum] Corporate 4 U. S. Year, month, or week Treas- M ip u a n l i s c- By ratings By groups ury 2 Total Aaa Aa A Baa In tr d i u al s- R ro a a i d l- u P t u i b li l t i y c Number of issues - 2-6 15 120 30 30 30 30 40 40 40 1937 average _____ 2.68 3.10 3.94 3.26 3.46 4.01 5.03 3.55 4 34 3 93 1938 averase 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 3.89 4.96 3.30 4.53 3.48 IQQQ—Mav 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 May - 2.38 2.81 3.65 2 93 3.08 3.65 4.94 3.20 4.46 3 30 Week ending: June 1 _ 2.48 3.03 3.80 3.04 3.17 3.77 5.22 3.33 4.66 3 41 June 8 2.49 3.02 3.80 3.03 3.16 3.77 5.22 3.32 4 67 3 40 June 15 2.41 2.96 3.76 2 98 3.13 3.73 5.19 3.28 4.63 3 37 June 22 2.33 2.77 3.70 2.92 3.09 3.68 5.09 3.22 4.55 3.31 » Monthly and weekly data are averages of daily figures, except for municipal bonds, which are based on Wednesday figures. » Average of yields of all outstanding bonds due or callable after 12 years; see BULLETIN for December 1938, pp. 1045-1046 for description. 3 Standard Statistics Co. 4 Moody's Investors Service, week ending Friday. Because of limited number of suitable issues, the industrial Aaa 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. JULY 1940 701 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BOND PRICES1 STOCK MARKET Corporate 3 Stock prices * Vol- U. S. ume of Year, month, or date Treas- Munic- tradury 2 ipal Indus- Rail- Public Year, month, or Common (index, 1926=100) ing3 Total trial road utility date Pre- (in ferred 2 thou- Indus- Rail- Public sands of Number of issues 2-6 20 20 20 Total trial road utility shares) 1937 average 101.7 110.3 93.4 90.1 100.4 1938 average 103.4 113.7 78.9 82.9 58.6 95.3 Number of issues _ _ 20 420 348 1939 average 106.0 116.3 81.6 86.0 58.0 100.9 1937 average 136.2 112 131 1,519 1939—May 108.3 118.1 80.2 54.8 101.0 1938 average 135.6 83 99 1,100 June 109.1 118.6 81.4 86.2 56.2 101.6 1939 average 141.2 105 973 July 108.9 118.3 81.6 86.3 56.4 102.1 August 108.2 116. 5 81.0 85.8 55.5 101.7 1939—May 141.8 97 548 September 101. 9 107.1 80.9 85.0 59.0 98.6 June 143.9 101 507 October 102. 6 110.7 82.9 86.4 61.6 100.5 July 143.7 101 821 November 104.6 117.5 83.0 87.0 60.2 101.8 August 142.3 101 706 December 106.1 119.9 82.1 86.8 58.0 101.6 September. __ 136.2 109 2,595 1940—January 106.8 120.2 82.4 87.3 58.2 101.8 October 137.7 113 1,050 February 106.6 119.1 82.2 87.3 57.8 101.6 November 140.7 111 907 March 107.5 119.7 82.1 87.3 57.2 101.8 December. __ 141.4 108 808 April 107.6 119.8 82.5 87.5 58.2 101.7 1940—January 143.0 109 678 May 105.6 115.3 79.4 85.3 53.5 99.3 February 142.9 107 654 March 141.8 108 740 May 29 104.3 111. 5 76.8 83.7 49.5 97.2 April 142.3 109 1,131 June 5 104.0 111.6 77.1 84.0 49.8 97.6 May 138.2 97 1,651 June 12 105.1 112.7 78.0 84.5 51.3 98.1 June 19 106.1 116.0 79.2 85.0 53.3 99.3 May 29 131.7 82 798 June 5 131.9 81 485 June 12 133.0 87 1,015 1 Monthly data are averages of daily figures except for municipal bonds, June 19 134.0 which are averages of Wednesday figures. 2 Average prices of all outstanding bonds due or callable after 12 years, based on quotations from Treasury Department. Prices expressed in 1 Standard Statistics Co. Monthly data are averages of Wednesday decimals. figures. 3 Prices derived from average yields, as computed by Standard Sta- 2 Average prices of industrial high-grade preferred stocks, adjusted to a tistics Co. $7 annual dividend basis. 3 Average daily volume of trading in stocks on the New York Stock Back figures.—See Annual Report for 1937 (table 79). Figures for U. S. Exchange. Weekly figures are averages for the week ending Saturday. Treasury bonds available on request. 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 Total Year or and (do- Total month re- mestic State Fed- Corporate (do- State Fed- Corporate fund- and and eral For- mestic and eral Foring) for- Total mu- agen- eign 2 and Total mu- agen- eign2 eign) nici- cies ! Bonds for- nici- cies i Bonds pal Total and Stocks eign) pal Total and Stocks notes notes 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—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 May 190 62 62 30 3 29 20 10 0 128 128 • 20 25 83 83 0 0 1 Includes publicly-offered issues of Federal credit agencies, but excludes direct obligations of U. S. Treasury. 2 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). 702 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] Interest-bearing Noninterestbearing 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 i c S s u s o s u r e c i - e i t a s y l 4 ot A h l e l r5 t d M u e re b 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 60 266 1933—June....... 22,539 22,158 •21,782 753 13,417 4,548 954 92 284 66 315 1934—June 27,053 26,480 •26,006 753 15,679 6,653 1,404 118 356 54 518 1935—June 28, 701 27, 645 26,910 753 14,019 62 10,023 2,053 156 580 231 825 1936—June 33,779 32,989 31,297 79 17,168 316 11,381 2,354 1,071 19 601 169 620 1937—June 36,425 35,800 33,734 79 19,936 800 10, 617 2,303 926 579 560 119 506 1938—June 37,165 36,576 33,463 79 21,846 1,238 9,147 1,154 1,601 644 141 447 1939—April 40,063 39, 525 35, 627 79 25,218 1,751 7,270 1,309 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 7,243 833 2,542 941 140 408 August 40,891 40,351 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 79 26,881 2,209 6,203 1,455 789 3,021 809 398 1940—January... 42,110 41,601 36,957 79 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 26, 908 2,707 6,125 1,309 784 3,269 803 165 392 April 42, 658 42,117 37, 236 79 26,908 2,818 6,125 1,306 782 3,282 816 150 391 May 42,808 42, 253 37, 285 79 26, 908 2,869 6,125 1,304 780 3,363 824 166 389 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. 5 Includes postal savings bonds and special issues to retirement funds, to Postal Savings System and to Federal Deposit Insurance Corporation. 6 Includes certificates of indebtedness not shown separately: 1932—$2,726,000,000, 1933—$2,108,000,000; 1934—$1,517,000,000 MATURITIES OF PUBLICLY-OFFERED DIRECT OBLIGATIONS, MAY 31,1940 [In millions of dollars] FULLY GUARANTEED OBLIGATIONS, BY AGENCIES.1 [In millions of dollars] Maturing Bonds Federal Home Recon- Com- U.S. Date maturing Bonds call- Farm Owners' struction modity Housor callable able^ JCJIXKI OI Total Mortgage Loan Finance ' Credit ing Total Bills Notes jAy/fj LrvonntVini Corpora- Corpora- Corpora- Corpora- Author- U. S. tion tion 2 tion tion ity Sav- Other ings 1934—June. _ 681 312 134 235 Dec... 3,063 980 1,834 249 1940—Before July 1 776 403 20 353 353 1935—June- 4,123 1,226 2,647 250 July 1-Sept. 30 902 902 Dec.-. 4,494 1,387 2,855 252 Oct. 1-Dec. 31 737 737 1936—June.. 4,718 1,422 3,044 252 1941—Jan. 1-Mar. 31 677 677 545 Dec... 4,662 1,422 2,988 252 Apr. 1-June 30 504 504 1937—June.. 4,665 1,422 2,987 255 July 1-Sept. 30 834 834 834 Dec— 4,645 1,410 2,937 297 Oct. 1-Dec. 31 204 204 1938—June. . 4,853 1,410 2,937 299 206 1942 1,001 1,001 Dec... 4,992 1,388 2,888 509 206 1943 1,595 1,050 545 1,855 1944 1,214 1,214 2,555 1939—Jan... 4,987 1,383 2,888 509 206 1945 2,834 718 175 1,941 1,755 Feb... 5,410 1,381 2,888 819 206 114 1946 1,853 319 1,534 2,359 Mar.. 5,410 1,381 2,888 819 206 114 1947 . 2,799 416 2,383 1,473 Apr... 5,410 1,380 2,888 819 206 114 1948 1,989 502 1,487 2,246 May.. 5,409 1,379 2,888 820 206 114 1949 1,651 832 819 2,278 June- 5,450 1,379 2,928 820 206 114 1950 1,197 3 625 571 1,186 July.. 5,480 1,379 2,958 820 206 114 1951 1,223 1,223 3,500 Aug... 5,583 1,379 2,858 820 409 114 1952 2,436 2,436 Sept.. 5,455 1,279 2,830 820 409 114 1953 2,904 2,904 Oct... 5,448 L, 279 2,823 820 409 114 1954 2,663 2,663 Nov.— 5,707 L, 269 2,817 1,096 407 114 1955 755 755 2,611 Dee... 5,703 1,269 2,813 1,096 407 114 1956 489 489 982 1940—Jan.. 5,699 L, 269 2,809 1,096 407 114 1958 919 Feb... 5,673 ,269 2,783 1,096 407 114 1959 982 982 Mar.. 5,663 1,269 2,770 1,096 407 114 1960 2,611 2,611 1,485 Apr... 5,657 1,269 2,763 1,096 407 114 1961 50 50 50 May__ 5,535 1,269 2,641 1,096 407 114 1963 919 919 1965 1,485 1,485 » Principal amount of obligations guaranteed as to interest and princi- Total 37,285 1,304 6,125 2,869 26,986 26, 986 pal. Excludes obligations held by U. S. Treasury and reflected in the public debt. The total includes guaranteed debentures of the Federal Housing Administrator, amounting to $7,200,000 on May 31, 1940. 1 Excludes U. S. savings bonds. Other bonds in the amount of $2,606,- 000,000 not callable prior to maturity are shown as of date of maturity. * Excludes obligations guaranteed as to interest only. For August 1939 Bonds that have been called are shown as maturing on date of call. and subsequent months includes matured bonds not presented for retire- 2 Includes unclassified U. S. savings bonds. ment amounting to $38,000,000 on May 31, 1940. JULY 1940 703 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SUMMARY OF TREASURY OPERATIONS lOn basis of daily statements of United States Treasury. In millions of dollars] General and special accounts Receipts Expenditures i T a ru c- st I c n r c e r a p e s a e e s r d e io u o d r r i n d g e- (General Excess ceotucn.*ts, of re- excess Period Total c ta o I x n m e - e s t S s a e o i x c t c y e u ia s r 3 - l l M a i r n n n e n is e t v u a e c o e e l r e 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 V i a N e d o n n e e n a s d t - - a - e l o A th l e l r r c a e R e o n l r i e v y d e - - f ( f v n u R i o n e n l e t g d v ) - s - ^ a f T e t e c r r t r c u c a s t . n s s t t 6 o s ., - p ( c t + e e u e n i r x ) p e d o - t s i s r - p ( c t o + e e u e f n i r x ) p r e d o - e t s i s - r - b G a f e l u a n n n e d c ra e l 6 G d r e o b s t s erans' Adm.» 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 11 months ending: May 1938 5,468 2,090 750 2,095 533 6,696 693 1,424 1,941 1,924 108 606 -1,228 +244 +13 +998 May 1939 5,055 1,833 715 2,040 468 8,259 668 1,487 2,537 2,853 84 629 -3, 203 +795 +708 +3,117 May 1940 5,141 1,662 806 2,144 529 8,514 736 1,842 3,044 2,231 50 611 -3, 374 +197 +2, 368 1939—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 +230 September- 719 329 27 311 52 784 151 147 261 170 5 50 -65 +46 -53 -34 October 322 38 36 198 50 764 68 154 305 175 9 53 -442 -264 +178 November... 407 34 130 191 52 691 12 157 282 182 5 53 -284 +267 +252 +269 December. __ 569 319 29 171 50 880 190 164 275 194 7 1 58 -311 -16 +311 +637 1940—January 315 45 45 167 57 712 38 173 317 185 4 75 -398 +37 -194 +167 February 444 63 178 154 49 668 19 169 299 168 4 10 -224 +36 +67 +256 March 934 665 30 192 46 956 146 184 276 210 6 135 -22 +11 +164 +175 April 304 48 39 175 42 783 69 202 279 207 6 20 -479 +58 -303 +118 May 400 40 137 179 43 647 10 196 237 199 1 4 -247 -83 -181 +150 Details of trust accounts, etc. Details of general fund balance (end of period) tr r u O e s t t l i d r f - u e a m n g d e e n a i t n n d s a u c r r c a a o i n l u r c o n e a t d Un t e r m us p t lo fu y n m d ent G c N h o e e v t c e k e r i x n n p m g e e n a n c d t c i t o a u g u r e n e n t s s c i i o n e f s e o x t A c h e l e l s r s , Period ce R i e p - ts m v I e e n s n - t t - s m B p e e f a i n n y t e t - s - ce R i e p - ts m v I e e n s n - t t - s d e i O x tu t p h r e e e n s r - 8 s C F t R r o i t u n e r i c p c o a o t o n n i n r c o a - e n - C m C o C t o r r i o p e o d m d o n it r i - y t a- o A th l e l r d ( e c o + i x e f t p ) u ip r e r e t n o e 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 n e l n - d - t S io e r i a g g n e - W a b i n n a o c g l r - e k- Fiscal year ending: June 1937 267 267 (10) 294 293 1 7 329 7 112 127 +60 2,553 1,087 141 356 970 June 1938. 550 461 85 763 560 191 79 7 184 7 11 +87 2,216 142 446 1,628 June 1939. 639 516 120 838 395 442 7658 136 7246 +116 2,838 142 536 2,160 11 months ending: May 1938 533 445 76 681 513 152 1 7 102 732 +84 2,567 142 440 1,985 May 1939 554 433 109 806 408 401 7 573 137 7 244 +105 2,924 142 528 2,254 May 1940 524 398 117 913 454 460 7 252 7 35 199 + 102 2,030 143 584 1,303 1939—May 50 40 11 137 108 32 3 74 12 +23 2,924 142 528 2,254 June ._ 85 83 11 32 7 13 41 7 86 (7) (10) 72 +11 2,838 142 536 2,160 July 65 45 10 58 7 14 42 16 6 144 +13 2,447 142 544 1,761 August 66 51 10 154 129 41 29 7 86 96 +5 2,231 142 549 1,539 September 50 43 10 13 7 19 40 22 5 7 74 +10 2,178 142 554 1,481 October 53 43 10 54 7 24 15 19 4 +15 1,913 143 558 1,213 November 53 43 10 144 142 29 7 297 27 7 19 +6 2,166 143 561 1,462 1940— D J e an ce u m ary ber 5 1 8 0 43 1 1 0 0 2 7 9 9 7 28 3 3 5 2 8 7 7 2 5 0 7 1 6 1 7 1 1 0 1 + -4 7 2 2 , , 4 2 7 8 6 2 1 1 4 4 3 3 5 5 6 6 8 5 1 1 , , 5 7 7 6 1 8 February 10 10 155 103 45 75 73 74 +18 2,350 143 573 1,634 M A M p a a r y r i c l h . 1 2 3 4 0 5 1 7 3 5 5 1 1 1 2 2 1 1 3 5 4 0 3 5 7 8 1 1 1 8 8 4 4 5 7 5 8 7 7 3 6 2 (7) (1 7 7 0 4 4 ) 7 7 9 2 1 0 5 2 + + + 2 3 7 1 2 2 2 , , , 0 2 5 3 1 1 0 0 4 1 1 1 4 4 4 3 3 3 5 5 5 8 8 7 4 1 7 1 1 1 , , , 3 7 4 0 9 8 3 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." < Includes revolving funds of Public Works Administration and Farm Credit Administration. 8 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 Excess of credits. s Includes withdrawals by states and railroad unemployment insurance account transfers and benefit payments. • 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. 10 Less than $500,000. 704 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

GOVERNMENTAL CORPORATIONS AND CREDIT AGENCIES, APRIL 30, 1940 [Based on compilation by U. S. Treasury Department from reports received from organizations concerned. In millions of dollars] st R ru e c co ti n o - n Ho h m ou e s i m ng o r a tg g a e g nc e i e a s nd Farm credit agencies Ten- Total F i A C P W s r i a t d n a u o r t o n m a r b a i d p r o n t l k i i o i n c n o c s - e - n O C H r L a w o o o t r i m n 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 - - p a C o n b A O F r a d r a d a t e n h r t m c d k m i e o o i s r . t r n - s m C C r C a o r o o t e r i d m p o d i o n i t - t y - Other t V n A h l s i e e t e a o u y s y l e r - - - - a a s c I g n u i n e e c r - s n - e Othe A 1 3 9 p 0 4 r , 0 . M 1 3 9 1 a 4 , r 0 . A 1 3 9 p 0 3 , r 9 . Assets Loans and preferred stock: Loans to financial institutions. _ 185 134 (i) 91 410 394 430 Preferred stock, etc 474 203 34 75 788 786 862 Loans to railroads 491 30 521 517 509 Home and housing mortgage loans 2,021 219 107 2,347 2,377 2,323 Farm mortgage loans 2,560 2,560 2,568 2,683 Other agricultural loans 1 292 650 198 5 1,145 1,131 776 All other loans _ *459 0) 3 363 <338 1,160 1,140 913 Total loans and preferred stock 1,611 2,223 387 107 2,560 367 650 561 8 91 374 8,930 8,914 8,497 Cash 27 197 71 42 98 45 2 22 28 14 553 504 559 U. S. Govt. direct obligations 48 4 42 3 86 170 403 4 760 765 705 Obligations of Government credit agencies: F O u th ll e y r 8 guaranteed by XJ S 8 14 (5) 2 3 1 6 1 105 1 4 3 6 1 1 4 3 5 0 1 4 4 6 4 Accounts and other receivables 23 8 5 2 208 34 0) 6 65 66 421 417 377 Business property (0 3 0) 128 6 8 315 1 95 558 555 472 P O r t o h p e e r r a ty ss e h t e s ld for sale 42 2 460 1 0) 0) 101 8 2 0) 6 0) 12 4 137 1 6 1 1 6 0 7 6 1 2 5 9 7 7 1 1 7 2 5 Total assets other than interagency8 1,762 2,896 520 282 3,069 636 693 589 330 709 691 12,17612,11611,688 Liabilities Bonds, notes, and debentures: Guaranteed by United States... 1,096 2,764 114 1,270 407 7 5,657 5,664 5,410 Other & _ 0) 134 »977 197 8 1 10 1,327 1,323 1,379 Other liabilities (including reserves). 126 95 40 5 115 8 187 193 7 234 60 1,069 1,065 803 Total liabilities other than interagency 6 __ 1,222 2,859 173 119 2,362 205 593 193 15 242 70 8,053 8,052 7,592 Excess of assets over liabilities, excluding interagency transactions. 540 37 346 163 707 431 100 396 315 467 620 4,122 4,064 4,096 Privately owned interests 52 207 4 139 403 401 387 U. S. Government interests 540 37 294 163 500 427 100 396 315 328 620 3,719 3,663 3,709 1 Less than $500,000. 2 Includes $89,000,000 loans of Public Works Administration. a Includes $295,000,000 loans of Farm Security Administration. 4 Includes $208,000,000 loans of Rural Electrification Administration. 6 Excludes Federal land bank bonds held by Federal Farm Mortgage Corporation. 8 Includes, however, investments in securities of agencies (other than mentioned in footnote 5) and deposits of agencies with Reconstruction Finance Corporation. NOTE—For explanation of table, see BULLETIN for October 1938, p. 882 RECONSTRUCTION FINANCE CORPORATION LOANS AND INVESTMENTS [Amounts outstanding. In thousands of dollars] May 31, Nov. 30, Dec. 31, Jan. 31, Feb. 29, Mar. 31, Apr. 30, May 31, 1939 1939 1939 1940 1940 1940 1940 1940 Loans to financial institutions 190,447 173,363 172,154 166, 799 162,852 159,353 155,651 154,163 Loans on preferred stock of banks and insurance companies. 33,494 33,094 33,029 32, 319 29, 994 29,840 29, 749 29,685 Preferred stock, capital notes, and debentures 528, 573 490,099 488,673 484,211 476,395 472, 345 474,475 471,072 Loans to railroads (including receivers) 436, 612 444,314 448, 792 454,194 458,841 467,887 471, 747 466,093 Loans for self-liquidating projects 113,450 79,440 65,873 66,501 66, 753 58, 578 61, 273 Loans to industrial and commercial businesses. 114,498 130,026 130,625 130,378 131,919 130, 704 130,466 130, 566 Loans to drainage, levee, and irrigation districts 83,084 83,750 83, 998 83,814 83,874 83,966 83, 723 83, 740 Other loans 28,640 4,046 4,081 4,093 4,180 4,260 4,235 4,631 Securities purchased from Public Works Administration.... 128,865 127,290 120,808 117,876 117,603 114,066 112, 743 111,323 Total loans and investments, other than interagency. 1, 657, 6631, 579,0501, 561, 5991, 539, 5571, 532,1601, 529,1741, 521, 3651, 512,546 Preferred stock of Export-Import bank 45,000 45,000 45,000 45,000 74,000 74,000 74,000 74,000 Loans to Rural Electrification Administration.... 61,148 146,498 146,498 146,498 146,498 146,498 146,498 146,498 Capital stock of, and loans to R. F. C. Mortgage Co 55,625 56,047 57,081 58,045 58,124 59,198 59,355 59,484 Capital stock of, and loans to Fed. Natl. Mtge. Assn 33,796 54,538 58,729 63,233 65,806 68,616 70, 385 71,846 Loans to Tennessee Valley Authority 3,000 8,300 8,300 8,300 8,300 8,300 8,300 8,300 Total loans and investments 1,856,232 1,889, 433 1,877,207 1,860,632 1,884,888 1,885,786 1,879,903 1,872,673 NOTE.—For explanation of table and back figures, see BULLETIN for April 1936, p. 220. JULY 1940 705 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 s a co nk u n l t o s a f n o s r — to Loans to cooperatives by- Regional End of month la F nd e d b e a ra n l ks C s o B L i m o a a n n n m e d k r is- p a s c p c r o n r c o r o e c d u e r d a d i a l d a g u i t b t i t t u r i t c i a o i r o t - c n a a n i n o s o k l s s r - n s , - , f c i i e n o n t O t x i a o s i o t n c v p t h n i e c e e t e s p i s r u n , r a t - g - ti P a o s r t n s i o o o d c n c u r i s e a c d - - it t R i u a t r r e g a c a g t r o l 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 e n c g a r s y n h - d t m F b c i e e n r a d d e t n e e d i k a r r i - s a t te l B in C c a a c B o t e n l i o a u n k v p n d t s e e r k i s a r f n , - o l g r i M A i n r n e g t g g a u v r r o r i f k c A a u l e u 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 27,851 54,863 1935—December. 2,071,925 794,726 104,706 47,162 94,096 43,400 172,863 2,731 60,013 44,433 1936—December. 2,064,158 836,779 129,872 41,017 105,212 25,288 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—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 10,235 180,166 359 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, 717 176,007 173,840 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 May 1, 882, 516 670, 723 190, 961 38, 377 194, 662 7,845 180,938 1,315 63, 564 18,137 i Some of the loans made by the regional agricultural credit corporations (prior to October 1935) and by the banks for cooperatives and mostfof the loans made by the production credit associations are discounted with the Federal intermediate credit banks. The amounts in this column are thus included in the three columns under those headings. Such loans are not always discounted in the same month in which the original credit is extended. FEDERAL HOME LOAN BANK BOARD POSTAL SAVINGS SYSTEM LOANS OUTSTANDING, BY INSTITUTIONS [In millions of dollars] [Loans in thousands of dollars] Assets Home mortgage loans by- Federal U. S. Government home Depos- securities Federal savings and loan End of month itors Cash Cash End of month L p O o H o a w r n o a n m t C e io r e o s n r ' - N o l u f o m a a n s b s o e a - r ssoc L ia o t a io n n s s * 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 bal- Total b in p t a o o n r d s y k i e - s - Total o r D g e b i a c - l - i t - G o t a e u b n e l a - d i r - - f s e u e r t n e r c - v d .* e s, ciations tions gations 1934—December. 2,379,491 639 81,300 86,651 1935—June— 1,205 1,236 385 777 147 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 1038—December. 2,168,920 1,368 1,034,162 1939-April 1,264 1,306 76 1,154 166 76 1939—January... 2,149,038 1,370 1,040,770 178,852 May 1,261 1,305 73 1,157 1,011 146 75 February.. 2,134, 261 1,375 1,051,109 170,614 June 1,262 1,304 68 1,157 1,011 146 79 March 2,117, 598 1,375 1,067,887 161,614 July 1,268 1,310 58 1,172 1,026 146 80 April 2,105,824 1,381 1,089,879 157,176 August 1,271 1,314 56 1,174 1,028 146 84 May 2,091,324 1,383 1,117,228 157,911 September 1,267 1,307 55 ,182 1,036 146 70 June 2,080, 512 1,386 1,136,289 168,962 October 1,270 1,311 54 ,182 1,036 146 75 July 2,067,844 1,385 1,157,536 161,537 November 1,274 1,317 54 1,182 1,036 146 80 August 2,059,792 1,392 1,186,784 159,470 December 1,279 1,319 53 1,192 1,046 146 74 September. 2,054,865 1,394 1,206,887 163,687 1940—January 1,290 1,331 50 1,197 1,051 146 84 October ... 2,049,421 1,394 1,231,685 168,654 February 1,297 1,340 48 ,194 1,048 146 97 November. 2,043, 288 1,401 1,252,559 168,822 March. i, 301 December.. 2,038,186 1,410 1,271,161 181,313 April ___. l, 303 1940— F J e a b n r u u a a r r y y . . . . . . . 2 2 , , 0 0 3 2 1 6 , , 3 6 4 1 1 4 1 1 , , 4 4 0 0 7 3 1 1, , 2 2 8 9 0 6 , , 2 4 0 6 0 4 1 1 5 4 6 4 , , 5 7 1 8 5 8 May 1,298 March 2,021, 951 1,413 1, 317,975 137, 642 April 2,.020, 572 1,420 1,348,072 133,811 p Preliminary. May 2,017, 395 1,421 1,376,700 137,509 1 Outstanding principal, represented by certificates of deposit. Does not include accrued interest nor outstanding savings stamps. 2 Includes working cash with postmasters, 5-per cent reserve fund and i Federal Home Loan Bank Board estimates for all Federal savings miscellaneous working funds with the Treasurer of the United States, and loan associations. accrued interest on bond investments, and accounts due from late post- 1 Excludes loans to other than member institutions which are negli- masters. gible in amount. Back figures.—See BULLETIN for August 1935, p. 502. 706 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

PRODUCTION, EMPLOYMENT, AND TRADE [Index numbers; 1923-25 averagej=100. The terms "adjusted" and "unadjusted" refer to adjustment for seasonal variation] Industrial production (physical volume)i* Construction contracts awarded (value)J Fac- Factory em- tory Freight-car Department Year Total Manufac- Minerals Total Residential All other ployment 3 pay- loadings4 • store sales rnll<3 3 month Ad- Unad- Ad- Unad- Ad- Unad- Ad- Unad- Ad- Unad- Ad- Unad- Ad- Unad- Unad- Ad- Unad- Ad- Unad justedjusted justedjustedjustedjustedjustedjusted justedjustedjustedjustedjustedjusted justedjustedjusted justedjusted 1919 83 84 77 63 44 79 107 98 84 78 1920 87 87 89 63 30 90 107 117 91 94 1921 67 67 70 56 44 65 82 76 78 87 1922 85 86 74 79 68 88 91 81 85 88 1923 101 101 105 84 81 86 104 103 100 98 1924 95 94 96 94 95 94 96 96 98 99 1925 104 105 99 122 124 120 100 101 103 103 1926 108 108 108 129 121 135 102 104 107 106 1927 106 106 107 129 117 139 100 102 104 107 1928 111 112 106 135 126 142 100 104 104 108 1929 119 119 115 117 87 142 106 110 107 111 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 1939 105 105 108 72 60 81 97 91 70 90 1937 April... 118 122 118 125 115 105 53 61 44 51 61 68 Ill 111 110 84 79 93 89 May.... 118 122 118 123 117 118 66 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 1OQQ Jan 81 79 76 75 108 104 52 42 26 22 73 69 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 80 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 52 77 84 88 89 77 62 63 83 65 Sept.... 90 91 89 89 97 102 78 79 56 56 96 97 89 92 82 64 71 86 91 Oct 96 97 95 95 98 106 82 78 57 56 102 96 90 92 84 68 75 84 92 Nov 103 104 103 103 102 105 96 85 56 54 128 111 93 93 84 69 70 89 99 Dec 104 98 104 98 110 103 96 77 57 48 128 100 94 94 87 69 64 89 150 1939 Jan 102 100 100 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 65 68 80 79 94 94 88 66 63 88 82 April... 92 95 92 96 94 87 67 76 68 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 99 105 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 61 107 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' 110 108 110 120 115 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.-. 102 104 98 103 123 111 64 73 62 73 66 74 99 100 96 70 67 89 86 May ,106 ,109 .103 .107 ,121 ,120 ,65 ,78 ,64 ,76 ,65 ,79 ,99 ,99 ,96 72 71 87 89 p Preliminary. * Average per working day. i For indexes of groups and separate industries see pp. 708-709; 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 1938, pp. 835- 837, and for October 1939, p. 878. For current indexes of groups and separate industries see pp. 710-713. Underlying figures are for payroll period ending nearest middle of month. 4 For indexes of groups see p. 715. Back figures.—Bee 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. JULY 1940 707 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 average=100] 1939 1940 Industry Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Manufactures—Total 92 91 97 100 105 Ill 121 124 30 118 108 101 98 *103 Durable. .. . _ 76 71 82 89 93 103 123 130 141 123 104 94 90 p 98 Nondurable 106 108 110 110 115 118 119 118 120 114 111 107 106 P108 Iron and Steel 80 73 89 101 106 122 158 168 174 144 112 97 92 109 Pig iron 66 65 73 81 91 101 119 125 126 119 102 91 90 101 Steel ingots 81 75 91 103 107 124 162 172 179 146 113 97 92 110 Transportation Equipment: Automobiles 87 73 81 87 89 85 78 90 127 128 127 110 105 96 Locomotives 14 16 15 15 19 23 24 20 18 19 21 24 Nonferrous Metals: Tin deliveries 1 92 102 93 87 99 97 95 119 165 181 140 136 147 135 Zinc 91 89 90 91 93 98 110 117 121 114 116 115 115 111 Lead 71 82 70 68 71 71 70 83 78 87 78 82 60 72 Cement and Glass: Cement 81 76 79 82 76 78 87 91 96 80 71 87 84 85 Glass, plate 83 89 124 87 121 165 222 191 232 200 165 164 136 130 Coke: Byproduct 94 77 103 110 120 130 143 147 148 148 132 127 129 136 Beehive 2 2 5 6 5 7 23 29 26 17 11 10 8 10 Textiles ._ 97 104 111 111 120 121 125 126 123 114 108 98 95 Cotton consumption 105 110 115 117 128 129 129 135 145 130 125 117 113 116 Wool 85 105 116 114 123 118 125 128 116 108 99 81 76 Consumption 91 120 138 136 150 138 138 140 124 114 103 89 80 P104 Machinery activity1 80 98 105 105 103 103 120 129 120 109 99 70 69 j>82 Carpet and rug loom activity L 78 73 70 64 79 84 94 92 85 86 86 78 78 Silk deliveries 88 76 84 84 87 107 120 96 72 74 63 66 64 55 Leather and Products 116 115 110 115 118 105 109 115 121 120 116 106 101 P100 Tanning 96 93 91 88 98 87 93 98 95 99 93 82 Cattle hide leathers 91 91 88 89 106 93 98 103 102 98 96 86 80 Calf and kip leathers 101 89 91 69 73 71 73 83 85 94 81 71 72 Goat and kid leathers 105 103 102 106 102 87 103 99 87 107 95 90 97 Boots and shoes . 128 128 121 133 131 117 119 126 138 133 132 120 113 P112 Food Products: Slaughtering and meat packing 90 94 87 89 92 100 99 100 99 100 100 99 103 100 Hogs. 81 84 73 77 84 95 99 100 99 95 95 94 96 96 Cattle 99 104 103 102 100 102 95 94 95 102 105 103 109 102 Calves 105 108 104 107 104 111 110 110 100 108 102 105 106 106 Sheep 135 142 143 145 139 146 144 154 147 158 145 139 144 145 Wheat flour 100 95 100 96 88 103 91 82 91 90 92 94 95 92 Sugar meltings ._ 94 72 66 81 77 96 91 85 128 105 79 74 75 78 Tobacco Products 164 170 170 158 168 164 166 172 186 167 170 160 181 176 Cigars 77 75 75 73 76 76 75 74 79 83 77 75 76 73 Cigarettes 236 246 247 227 241 235 240 250 273 239 247 229 267 259 Manufactured tobacco 81 85 84 80 89 85 83 87 89 74 79 79 85 83 Paper and Printing: Newsprint production .. 63 65 63 63 63 65 63 64 65 64 68 69 68 68 Newsprint consumption «. 130 127 132 126 130 142 137 131 140 129 132 136 133 141 Petroleum Refining 209 211 215 212 218 221 232 228 221 214 217 217 219 Gasoline *__ 265 269 276 273 280 284 296 293 280 265 268 268 273 Kerosene __ _ 122 124 122 117 123 118 118 109 108 106 125 136 131 Fuel oil1 143 143 144 139 140 148 155 150 150 162 159 157 153 Lubricating oil * 115 119 121 115 128 123 149 141 145 138 139 139 142 Rubber Tires and Tubes 1 106 103 114 113 122 125 125 118 110 117 118 118 125 Tires, pneumatic * _ 111 108 120 118 127 130 130 122 115 '119 123 '123 123 130 Inner tubes l _ . _» 73 67 76 74 81 85 89 84 72 76 78 '79 82 84 Minerals—Total 94 98 104 106 91 114 121 124 120 125 120 121 123 P121 Bituminous coal 28 46 71 75 77 84 94 91 83 91 87 79 92 *»91 Anthracite . 80 73 59 53 53 71 58 60 59 75 51 66 54 Petroleum, crude 174 175 170 174 127 174 181 187 189 189 190 194 192 *>187 Iron ore . . 55 67 74 78 97 128 »154 110 Zinc 91 89 90 91 93 98 110 117 121 114 116 115 115 111 Lead 71 82 70 68 71 71 70 83 78 87 78 82 60 72 Silver -. . 101 71 107 70 79 104 91 91 105 89 103 98 116 i Without seasonal adjustment. p Preliminary. ' Revised. NOTE.—Descriptive material and tables giving back figures may be obtained upon request from the Division of Research and Statistics. Series on shipbuilding, silk-loom activity, and on production of book paper, wrapping paper, fine paper, boxboard, mechanical wood pulp, chemical wood pulp, paper boxes, and lumber, included in the total index, are withheld from publication pending revision. 708 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 average=100] 1939 1940 Industry Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Manufactures—Total.. 94 97 95 110 123 123 121 116 110 105 103 P107 Durable 78 85 84 100 123 126 129 117 104 102 99 J>107 Nondurable 106 107 108 106 119 122 122 114 116 114 108 106 P108 Iron and Steel 79 94 104 121 153 155 153 138 117 109 102 119 Pig iron 56 77 87 98 119 126 124 118 104 96 95 103 Steel ingots_. 82 105 123 157 158 156 140 118 110 102 120 Transportation Equipment: Automobiles 106 108 142 128 127 128 128 116 Locomotives 13 15 24 22 19 17 21 25 Nonferrous Metals: Tin deliveries- 102 95 119 165 181 140 136 147 135 Zinc- 90 87 106 117 123 121 124 122 120 112 Lead 80 72 79 81 60 70 Cement and Glass: Cement 100 90 75 49 43 63 82 100 Glass, plate. _. 78 165 222 191 232 200 165 172 149 136 Coke: Byproduct.. 95 101 116 128 143 150 150 149 136 131 130 134 Beehive 2 5 4 7 22 30 29 20 14 12 9 Textiles 100 104 105 103 112 121 129 131 117 119 114 101 P100 Cotton consumption 113 114 111 106 115 125 133 140 133 137 134 122 121 119 Wool 84 100 109 106 118 122 132 135 116 110 104 82 75 Consumption 88 111 124 121 139 145 151 153 125 118 112 91 77 Machinery activity 80 98 105 105 103 103 120 129 120 109 70 69 Silk C d a e r li p v e e t r i a e n s d rug loom activity. 8 7 7 8 7 7 3 5 7 7 5 0 64 11 8 3 4 12 9 0 4 92 8 6 5 4 67 78 7 6 8 4 54 Leather and Products 113 106 105 114 131 121 120 110 103 111 118 109 *>92 Tanning 94 88 90 100 92 99 96 92 95 83 Cattle hide leathers 91 87 104 97 101 102 99 99 103 87 Calf and kip leathers... 91 85 88 82 87 79 73 78 74 63 65 Goat and kid leathers.. 104 96 102 100 91 107 97 94 102 91 96 Boots and shoes 126 117 115 130 151 140 133 120 109 121 133 126 111 Food Products: Slaughtering and meat packing. 81 92 86 84 91 97 111 118 119 102 92 97 Hogs.. 72 81 76 69 64 71 84 110 129 127 106 94 86 92 Cattle 87 101 96 101 98 114 111 108 100 103 92 89 96 99 Calves 114 122 108 104 96 107 116 112 95 100 94 106 115 120 Sheep . 127 139 140 145 140 170 158 152 144 160 136 126 135 142 Wheat flour 91 90 88 94 94 122 102 89 87 89 88 86 87 Sugar meltings 109 81 78 102 87 66 73 77 87 87 87 Tobacco Products 151 172 186 171 180 181 179 175 151 158 155 152 166 178 Cigars 72 78 81 76 87 92 88 59 64 66 68 71 75 Cigarettes 215 248 272 249 261 259 252 247 224 234 225 218 243 261 Manufactured tobacco. 78 85 91 93 85 73 75 81 84 Paper and Printing: Newsprint production 64 64 62 61 64 63 63 65 65 Newsprint consumption.. 139 131 112 116 139 146 140 144 124 131 142 143 149 Petroleum Refining 208 211 215 211 217 221 233 222 214 217 219 Gasoline 265 269 276 273 280 284 296 280 265 268 273 Kerosene 121 119 113 108 116 121 124 117 117 108 128 132 130 Fuel oil 143 143 144 139 140 148 155 150 150 162 159 157 153 Lubricating oil...... 115 119 121 115 128 123 149 141 145 138 139 139 142 Rubber Tires and Tubes.. 106 103 114 113 122 125 125 118 110 114 117 118 118 125 Tires, pneumatic 111 108 120 118 127 130 130 122 115 119 123 123 123 130 Inner tubes 73 67 76 74 81 84 72 76 78 »79 84 Minerals—Total.. 87 97 105 107 123 132 127 113 120 115 112 111 P120 Bituminous coal... 23 40 63 76 90 104 102 101 92 79 77 Anthracite 83 73 51 44 53 72 74 62 58 81 54 55 56 Petroleum, crude- 174 177 173 178 129 179 183 185 184 181 186 192 192 Iron ore._ 82 132 150 159 187 218 ••129 166 Zinc 94 90 87 84 87 93 106 117 123 121 124 122 120 112 Lead 70 71 65 68 67 72 79 88 81 83 60 70 Silver.. 102 105 59 78 106 90 111 106 117 p Preliminary. r Revised. NOTE.—Descriptive material and tables giving back figures may be obtained upon request from the Division of Research and Statistics. Series on shipbuilding, silk-loom activity, and on production of book paper, wrapping paper, fine paper, boxboard, mechanical wood pulp, chemical wood pulp, paper boxes, and lumber, included in the total index, are withheld from publication pending revision. JULY 1940 709 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 Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Total 93.8 93.3 94.3 95.3 95.9 97.5 101.2 103.4 104.5 103.9 102.1 100.4 99.2 99.2 Durable goods — 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 95.1 Nondurable goods 103.3 103.3 104.2 105.3 105.9 105.7 107.6 109.2 108.9 107.9 106.6 104.8 103.3 103.1 Iron, Steel, Products 90.5 89.6 90.3 90.6 92.5 96.4 105.9 110.8 112.1 110.4 107.0 102.7 100.8 101.1 Blast furnaces, steel works.. 95 94 96 96 97 101 115 122 124 122 117 110 107 108 Bolts nuts washers, rivets 94 93 93 94 98 102 113 118 120 117 113 112 108 105 Cast-iron pipe - - 73 73 71 72 73 74 77 79 79 75 78 76 75 75 Cutlerv edge tools 90 86 91 91 94 97 102 107 109 107 103 101 102 101 Forcings 55 55 54 56 56 59 66 70 72 72 71 67 67 65 Hardware - 84 80 72 70 78 95 99 106 106 104 101 98 97 96 Plumbers' supplies 74 75 76 77 78 80 81 83 85 83 81 81 82 82 Stamped, enameled ware 144 142 147 147 157 159 162 166 166 160 161 158 155 153 Steam hot-water heating 75 74 75 78 79 80 84 86 87 86 85 85 85 84 Stoves 84 85 86 89 88 86 90 91 93 93 91 91 89 88 Structural, ornamental 67 67 66 67 69 71 75 76 76 75 75 72 71 72 Tin cans, tinware . 96 95 95 95 98 97 103 103 100 101 100 '99 98 97 Tools 84 84 84 81 85 87 91 94 96 96 96 93 93 92 Wirework _- 148 142 135 128 121 149 164 171 176 172 162 161 158 156 Machinery . • 94.9 94.4 95.4 96! 1 97.3 99.8 105.7 110.6 112.9 113.4 113.6 113.3 113.4 113.4 Agricultural implements 122 119 118 115 121 123 125 128 131 133 137 136 133 136 Cash registers, etc. 127 126 128 127 125 127 126 127 129 127 128 128 128 128 Electrical machinery 87 86 87 87 88 92 97 100 103 103 102 102 102 101 Engines, turbines, etc. 91 93 95 95 97 99 108 116 124 133 134 132 134 142 Foundry, machine-shop products- 82 81 83 83 85 86 91 95 97 98 98 97 97 96 Machine tools 138 140 144 149 146 155 170 183 191 197 204 209 215 220 Radios, phonographs 124 121 122 131 126 129 145 160 153 144 144 145 153 155 Textile machinery 73 75 75 77 78 78 81 85 86 86 85 85 84 82 Typewriters _ . 129 126 126 122 119 122 123 125 125 123 119 115 114 113 Transportation Equipment 91.1 87.2 88.9 90.0 88.3 99.5 105.6 101.3 112.6 113.1 110.8 111.1 109.7 110.0 Aircraft L,075 L, 169 1,267 L, 385 1,414 1,512 1,605 L,767 L, 905 2,050 2,062 2,075 2,124 2,262 Automobiles 96 89 89 90 88 102 108 100 112 111 107 107 106 105 Cars, electric-, steam-railroad 34 34 33 32 31 34 42 48 53 57 61 60 54 52 Locomotives 18 21 25 28 29 28 25 26 28 30 30 28 27 28 Shipbuilding . _ 112 118 127 128 125 128 132 133 139 140 146 148 148 153 Nonferrous Metals, Products 93.2 92.8 92.8 94.6 96.2 99.2 107.0 110.1 111.3 111.7 107.5 106.6 105.9 105.9 Aluminum 143 142 145 153 157 152 166 172 170 173 170 168 170 173 Brass, bronze, copper 103 104 105 106 109 115 130 137 138 137 128 127 125 124 Clocks, watches 85 84 82 84 85 85 87 88 89 92 91 91 90 91 Jewelry 93 90 91 94 95 91 92 95 96 95 93 95 96 96 Lighting equipment 77 76 73 75 77 88 95 89 95 95 88 84 85 84 Silverware, plated ware 68 68 68 70 70 71 70 72 74 74 71 70 70 70 Smelting, refining. _ 78 77 77 76 75 77 83 85 86 87 87 87 86 86 Lumber, Products 64.2 64.8 65.3 66.0 66.4 67.4 69 4 72.2 72.4 72.0 70.0 68.1 67.2 67.9 Furniture 85 84 85 86 86 87 89 93 93 94 91 90 90 90 Lumber, millwork . 57 56 59 59 60 61 63 64 64 65 63 62 61 60 Lumber, sawmills 57 59 59 60 60 61 63 66 66 65 63 61 60 61 Stone, Clay, Glass Products 77.9 75.4 77.5 78.4 78.1 79.0 81.9 85.0 85.4 85.8 80.8 80.0 79.8 78.6 Brick, tile, terra cotta 58 55 67 58 57 59 61 64 65 66 61 59 59 58 Cement 67 63 66 67 67 66 68 70 71 68 66 65 68 65 Glass _ 97 96 98 98 99 100 106 109 109 111 103 105 104 102 Marble, granite, slate . 53 52 50 51 50 48 49 49 50 46 48 45 45 46 Pottery 84 84 87 88 87 86 90 93 94 95 93 90 89 88 Textiles, Products 99.4 99.6 101.0 103.9 104.6 103.4 106.0 107.5 105.8 104.4 102.7 99.1 96.6 96.2 Fabrics 90.1 90.9 91.9 94.3 95.2 93.9 97.7 99.7 96.9 95.0 93.1 88.6 87.8 87.7 Carpets, rugs 77 74 73 74 76 78 83 85 84 85 83 78 79 75 Cotton goods 85 85 86 86 91 91 94 96 95 94 93 89 89 88 Cotton small wares 78 80 79 83 84 86 91 92 91 88 83 77 76 76 Dyeing, finishing textiles 121 124 120 128 129 129 133 132 131 127 124 123 121 123 Hats, fur-felt . 86 84 89 93 90 87 86 90 92 91 90 84 65 71 Hosiery . 154 153 152 154 155 149 151 151 146 145 145 139 139 135 Knitted outerwear 67 68 72 75 80 75 76 75 68 62 68 65 60 61 Knitted underwear 70 73 74 77 79 78 79 80 79 80 77 77 74 72 Knitted cloth.., . 133 128 138 138 140 140 148 155 146 142 134 '133 130 127 Silk, rayon goods. 75 76 73 72 72 70 75 77 74 71 66 65 65 67 Woolen, worsted goods 77 81 86 89 85 83 90 95 89 85 81 71 70 73 Wearing apparel 116.4 115.2 117.5 121.1 121.4 120.4 120.4 120.4 121.6 121.3 '120.0 118.8 112.4 111.3 Clothing, men's 103 102 104 107 107 106 107 108 112 110 107 107 100 97 Clothing, women's 165 161 169 174 174 172 171 171 171 167 '169 167 156 157 Corsets, allied garments 109 111 114 115 117 116 117 117 117 117 114 '113 111 113 Men's furnishings... 128 125 129 135 140 136 138 127 122 120 120 120 115 114 Millinery 81 80 74 73 77 80 80 74 75 79 83 83 78 73 Shirts, collars 119 120 120 123 121 121 121 123 123 132 125 122 122 121 Revised. 710 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 Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr, May Leather, Manufactures 97.7 93 7 97.1 98.7 97.4 96.8 97.4 99.1 96.9 97.3 95.4 93.8 91.8 88.3 Boots, shoes. _ 97 92 96 98 96 95 96 98 96 96 94 93 90 86 Leather 85 84 86 87 87 87 88 88 86 87 85 83 82 81 Food, Products. _ _ 127.0 128.4 129.4 127.9 129.7 128.1 126.9 129.6 131.4 130.7 '130.8 '130. 3 128.8 128.6 Baking 144 146 147 147 146 146 146 145 145 144 144 145 144 145 Beverages 270 272 275 269 269 269 271 279 285 280 278 275 274 273 Butter 95 96 95 95 96 95 95 97 97 '95 96 96 97 98 Canning, preserving 157 159 162 150 160 147 137 150 154 149 '155 '152 150 144 Confectionery 81 81 80 82 86 82 82 86 86 85 86 83 82 84 Flour _ _ 77 80 81 81 79 82 80 77 79 80 80 80 79 81 Ice cream 78 77 77 75 75 76 78 79 79 79 79 80 79 76 Slaughtering, meat packing 96 98 100 101 101 102 103 106 108 108 109 110 107 107 Sugar, beet . 103 107 104 99 105 131 107 105 118 162 102 102 98 97 Sugar refining, cane 102 87 89 94 96 90 100 95 98 94 93 97 94 95 Tobacco Manufactures 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 65.2 Tobacco, snuff _. ._ . 63 62 62 61 62 62 62 60 60 62 60 60 59 59 Cigars, cigarettes 65 65 66 66 66 65 64 63 65 65 63 65 66 66 Paper, Printing 111.5 111.5 111.1 111.8 112.0 112.8 115.0 115.7 116.4 115.5 114.7 114.8 114.3 115.2 Boxes, paper ... 111 111 111 113 115 116 121 122 121 121 118 116 115 116 Paper, pulp 106 107 106 106 107 109 114 115 115 114 113 113 112 115 Book, job printing . 100 99 99 101 99 98 99 100 101 102 100 100 101 100 Newspaper, periodical printing.._ 114 115 114 114 115 116 116 115 116 114 116 117 116 116 Chemicals, Petroleum, and Coal Products 114 2 114 4 113 1 113 7 111 9 116 4 119.9 121.3 121.9 121 4 '120.6 '120.0 121.1 122.4 Petroleum refining *._ 118 119 120 121 122 122 122 123 122 122 122 123 122 123 Othp.r t-hfvn pp.trolp.iTm 113.3 113.4 111.4 111.9 109.4 115.2 119.4 120.8 121.8 121.3 '120. 3 '119. 4 120.9 122.4 Chemicals 118 117 117 115 119 122 132 137 138 138 138 137 136 137 Cottonseed oil, cake, meal .. 103 110 88 85 81 92 98 91 91 92 87 '84 97 100 Druggists' preparations 109 111 112 114 112 112 113 114 116 119 118 117 119 123 Explosives 86 87 90 92 93 98 102 104 106 104 108 109 116 120 Fertilizers 110 115 107 105 103 111 109 106 111 105 99 102 109 122 Paints, varnishes 121 119 120 122 125 123 125 126 126 127 124 124 123 121 Rayon, allied products 309 302 295 298 254 297 309 310 311 310 309 304 312 311 Soap . . 78 79 80 84 87 87 87 86 87 86 84 81 81 82 Rubber Products 81.3 81.1 80.8 79.7 83.6 86.1 91.2 93.0 92.4 90.2 87.9 86.7 83.9 83.8 Rubber boots, shoes . 60 61 59 47 58 58 60 61 61 59 57 '57 57 56 Rubber tires, inner tubes 67 67 66 67 68 70 74 75 75 74 73 72 70 69 Rubber goods, other.. 131 129 131 134 138 144 154 159 157 152 145 142 136 139 •• Revised. NOTE.—Figures for May 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. JULY 1940 711 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 Apr. May Jan. Feb. Mar. Apr. May Apr. May Jan. Feb. Mar. Apr. May Total 94.1 93.0 101.4 101.4 100.8 '99.6 99.0 85.5 85.0 97.8 96.3 96.4 Durable goods 84.8 84.0 97. '96.6 96.4 96.0 96.4 79.5 78.8 96. '97.6 97.2 97.8 Nondurable goods. 103.0 101.6 105.3 106.1 105.1 103.0 101.5 92.2 91.9 99.1 '98.9 95.4 94.9 Iron, Steel, Products 91. 90. 108.3 106.7 103. 5 101. 101.8 82.0 80.2 106. 2 100. '96.5 94.9 97.1 Blast furnaces, steel works 96 95 121 117 112 108 109 85 82 119 110 102 99 103 Bolts, nuts, washers, rivets 95 94 117 114 112 109 106 91 90 124 126 117 114 109 Cast-iron pipe— - 73 73 74 76 75 75 75 62 68 65 68 60 62 67 Cutlery, edge tools 92 87 105 104 103 104 103 79 76 93 91 91 94 92 Forgings. 55 55 72 72 67 57 57 86 84 77 75 73 Hardware .. 85 80 104 101 98 79 78 109 101 105 104 102 Plumbers' supplies 74 75 82 82 82 82 82 64 67 71 71 71 72 73 Stamped, enameled ware 148 145 158 161 161 160 157 147 143 160 162 164 164 163 Steam, hot-water heating 75 74 83 84 85 85 85 60 61 74 76 75 76 75 Stoves 86 87 78 86 90 91 91 76 75 65 75 80 82 84 Structural, ornamental 66 67 73 72 70 70 71 58 57 63 60 61 62 Tin cans, tinware. 93 94 94 93 '94 95 96 95 98 97 100 101 101 Tools _ 84 84 96 96 95 94 92 80 79 91 90 Wirework 151 146 172 162 163 162 161 148 139 175 175 170 Machinery 95.0 94.9 112. 4 113.1 113.1 113.6 114.0 92.8 94.0 119.1 119. 121. 5 121.6 122.3 Agricultural implements 129 123 135 141 144 141 140 145 135 156 164 168 166 164 Cash registers, etc 128 127 126 128 128 129 129 121 122 129 131 134 134 134 Electrical machinery 87 87 102 102 102 102 102 89 91 112 112 114 113 115 Engines, turbines, etc 96 97 125 133 135 140 149 112 114 162 172 176 183 194 Foundry, machine-shop products. 97 98 97 97 97 74 75 95 94 96 95 95 Machine tools 82 82 197 205 211 216 221 152 161 259 271 282 287 288 T T R e y a x p d t e i i o w le , r p m it h e a o r c n s h o i g n r e a r p y hs 1 1 1 2 0 7 3 9 5 4 9 1 1 1 7 4 2 0 5 1 7 7 1 1 8 2 3 6 3 6 1 1 8 2 1 6 6 8 1 1 8 1 2 6 5 2 1 1 8 2 1 5 8 4 1 1 8 1 3 2 3 7 132 1 9 7 2 2 0 7 1 1 8 1 2 4 1 2 1 1 8 1 1 1 3 0 1 1 1 8 1 0 2 1 1 1 8 1 1 0 6 2 1 1 7 2 1 7 8 4 Transportation Equipment 96.1 91. 115.5 114.8 117.0 115.4 115.0 94.2 87.3 118.3 118.6 124. 3 122.6 118.4 Aircraft 1,096 ,204 2,030 2,042 2,096 2,166 ,330 1,054 ,155 1,901 1, 881 ,011 ,063 2,187 Automobiles 102 93 116 113 114 112 110 100 88 120 119 123 121 114 Cars, electric-, steam-railroad 36 37 53 59 61 57 56 30 32 47 54 58 52 50 Locomotives 18 22 28 29 28 28 28 16 20 27 27 26 26 27 Shipbuilding 116 122 138 143 151 153 158 121 131 148 150 169 169 178 Nonferrous Metals, Products.. 92. 92.0 109.8 107. 2 107.1 105.6 105.2 83.2 84.0 108.7 103.4 104.8 103.1 103.7 Aluminum 144 142 170 171 171 172 173 156 153 193 195 196 199 202 Brass, bronze, copper — 104 105 136 128 129 126 125 100 104 150 136 137 133 134 Clocks, watches 84 82 91 91 91 89 81 78 93 95 95 92 94 Jewelry 87 83 89 91 92 90 68 66 73 69 75 72 72 Lighting equipment 78 76 93 88 86 86 84 57 59 74 71 74 74 72 Silverware, plated ware.. 69 69 72 71 70 71 70 58 59 61 59 60 63 62 Smelting, refining 78 77 87 87 87 72 72 87 85 84 85 Lumber, Products 63. 65.0 67.3 66.7 66.8 68.0 55.4 58.0 58.8 60.0 61.0 61.4 63.5 Furniture 82 81 90 89 8.7 67 67 75 77 78 74 75 Lumber, millwork. 57 56 62 61 61 61 43 44 47 47 47 48 48 Lumber, sawmills.. 58 60 60 59 60 62 50 54 51 52 53 55 59 Stone, Clay, Glass Products.. 78.5 78.5 77.7 75.5 77.7 80.5 81.7 66.4 67.7 66.' 65.3 68.3 72.2 74.1 Brick, tile, terra cotta... 58 58 57 53 54 58 61 43 44 43 40 42 45 49 Cement. 67 68 58 55 59 71 61 63 51 48 54 64 69 Glass 98 97 106 103 106 105 104 94 96 113 108 113 114 111 Marble, granite, slate... 53 54 39 43 43 46 48 42 44 24 29 30 35 39 Pottery 87 92 93 93 91 79 77 81 84 85 85 Textiles, Products 101.8 99.2 103.5 105.5 102.9 95.9 81.9 79.7 87.5 91.3 '89.5 81.4 77.9 Fabrics 90.6 90.1 95.9 95.5 '90.7 88.3 87.1 75.0 75.3 84.8 84.2 '78.5 75.2 74.0 Carpets, rugs 78 74 82 82 80 80 75 63 58 72 71 67 68 59 Cotton goods 87 85 96 92 91 89 73 72 89 87 83 81 78 Cotton small wares 82 80 85 81 79 76 73 72 81 75 76 73 Dyeing, finishing textiles.. 126 124 130 130 128 125 123 106 103 110 109 109 105 Hats, fur-felt 87 82 91 92 87 65 69 55 63 85 84 69 39 47 Hosiery 155 153 144 145 140 140 134 158 150 146 151 146 144 134 Knitted outerwear 67 68 59 68 65 60 61 52 54 47 57 53 47 50 Knitted underwear 73 74 75 77 79 77 74 64 65 66 69 72 68 65 Knitted cloth . 133 128 137 135 135 131 127 101 100 112 108 107 101 103 Silk, rayon goods 74 71 73 69 66 ,64 62 54 52 57 54 52 50 49 Woolen, worsted goods 73 80 87 85 71 67 72 56 65 73 72 57 53 60 Wearing apparel 122.8 115.6 U6.1 123.7 126. 6 118.6 111.8 90.5 83.5 87.5 '99.8 105. 7 88.7 80.7 Clothing, men's. 106 99 106 110 112 104 95 77 69 80 86 88 72 64 Clothing, women's 178 166 162 176 181 168 162 121 114 113 134 142 119 112 Corsets, allied garments. _. 112 113 115 116 117 115 114 119 120 112 118 120 120 116 Men's furnishings 132 127 112 121 124 118 115 108 103 95 113 117 101 96 Millinery 91 82 79 90 97 87 75 71 58 59 77 103 74 54 Shirts, collars 122 121 120 125 126 125 121 100 99 108 113 111 101 'Revised. 712 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 Apr. May Jan. Feb. Mar. Apr. May Apr. May Jan. Feb. Mar. Apr. May Leather, Manufactures 100.2 92.5 97.4 99.3 98.2 94.2 87.1 79.8 68.6 82.3 82.6 80.3 70.7 63.8 Boots, shoes- 100 91 96 98 98 93 85 77 64 79 80 78 67 58 Leather _ _, _ 86 83 87 87 84 83 81 81 79 86 83 80 78 77 Food, Products 117.6 120.5 119.5 '118.8 '118.8 119.7 121.3 112.1 118.8 117.0 115.5 '117.1 117.7 121.3 Baking 143 146 141 142 143 143 145 129 137 131 132 134 134 138 Beverages 265 277 255 254 '262 268 278 303 324 279 284 300 312 330 Butter _ 92 98 89 89 90 94 100 77 82 75 76 78 81 85 Canning, preserving 108 108 91 rQ2 '88 103 98 88 93 81 78 76 83 88 Confectionery _ __ _ _ 76 74 83 84 82 77 76 68 70 80 81 77 74 76 Flour _- 76 78 79 79 '79 78 79 70 72 •73 74 '73 72 73 Ice cream 74 85 66 67 70 75 84 62 71 56 57 60 63 70 Slaughtering, meat packing 93 97 112 109 107 104 106 97 105 119 111 112 110 110 Sugar, beet 46 52 70 38 40 44 47 49 56 63 44 45 48 49 Sugar refining, cane . _ _ 102 88 90 92 96 94 95 88 73 71 77 79 77 80 Tobacco Manufactures _ 63.1 64.2 59.0 61.7 63.6 63.8 64.3 55.0 57.7 52.9 54.0 '58.1 58.7 62.1 Tobacco, snuff 62 61 63 62 61 59 59 64 65 68 69 67 64 67 Cigars, cigarettes 63 65 58 62 64 64 65 54 57 51 52 57 58 61 Paper, Printing 111.1 111.2 115.1 114.6 114.4 113.8 114.9 104.5 105.1 110.0 108.6 110.0 109.7 113.1 Boxes, paper 109 109 117 115 114 113 114 116 116 122 119 122 121 124 Paper, pulp 106 107 114 113 113 112 115 105 106 118 117 115 115 124 Book, job printing 99 99 103 101 100 100 99 85 86 92 87 88 87 88 Newspaper, periodical printing 115 115 114 115 117 117 117 108 108 106 108 111 111 112 Chemicals, Petroleum, and Coal Products 116.6 112.9 121.0 "•121.0 rl22. 8 123.4 121.1 119.5 119. 6 131.0 131.4 132.5 133.4 133.7 Petroleum refining 117 118 122 121 121 121 122 129 132 134 134 136 137 137 Other than petroleum 116.4 111.7 120.9 '121.1 '123.1 123.9 120.9 116.7 115.7 130.3 130.4 131.5 132.3 132.8 Chemicals 117 117 136 136 136 135 136 130 131 160 160 159 160 162 Cottonseed oil, cake, meal 85 75 103 "•98 f-90 79 68 67 58 99 89 '81 69 60 Druggists' preparations 109 108 119 119 119 119 119 119 118 129 130 131 131 129 Explosives _._ _. 84 86 104 106 108 114 118 94 96 121 128 129 133 141 Fertilizers 177 124 105 109 152 175 132 136 106 83 84 113 136 121 Paints, varnishes __ 123 123 124 123 124 124 126 126 130 129 128 131 132 136 Rayon, allied products 302 296 314 313 309 306 304 279 273 320 321 316 311 311 Soap 79 78 84 84 83 81 81 95 94 100 100 100 98 98 Rubber Products _ _. 82.1 81.2 90.0 88.0 87.3 84.7 84.1 81.0 80.0 94.1 '88.4 '88.3 86.5 87.1 Rubber boots, shoes 59 59 59 57 '57 56 54 57 55 56 53 56 55 54 Rubber tires, inner tubes 67 67 74 73 72 70 69 72 72 86 81 79 78 80 Rubber goods, other.._ 134 131 150 145 144 140 141 124 122 145 135 138 133 132 r Revised. NOTE.—Figures for May 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 >]er hour) Industry group 1939 1940 1939 1940 Mar. Apr. Dec. Jan. Feb. Mar. Apr. Mar. Apr. Dec. Jan. Feb. Mar. Apr. Total. 37.3 36.6 38.6 37.4 37.3 37.5 37.2 64.5 64.2 66.2 66.3 66.3 66.5 66.5 Durable goods 36.8 36.6 39.6 38.1 37.9 38.3 38.2 71.1 71.0 72.7 72.7 72.6 72.8 72.9 Iron, Steel, Products 35.8 35.1 39.4 37.6 36.5 36.1 36.0 75.2 75.2 77.2 76.6 76.4 76.3 76 4 Machinery 38.0 37.7 41.3 40.4 40.1 40.7 40.5 72.8 72.6 73.2 73.5 73.7 73.9 73.9 Transportation Equipment 34.4 35.5 38.5 37.4 37.6 38.4 38.3 90.0 89.7 90.1 89.4 89.6 90.0 90.2 Nonferrous Metals, Products 38.3 37.2 40.9 39.2 38.4 38.9 38.6 66.7 67.0 70.3 70.1 69.6 69.7 70.0 Lumber, Products _ _ 38.5 38.2 38.6 36.9 38.0 38.4 38.4 49.2 49.8 51.3 51.2 51.3 51.5 51.8 Stone. Clay, Glass Products 36.2 35.5 37.5 35.1 35.3 35.7 36.5 65.2 64.8 66.0 66.4 66.2 66.4 66.4 Nondurable goods 37.7 36.6 37.7 36.9 36.8 36.9 36.2 59.1 58.8 60.5 60.7 60.8 61.0 60.9 Textiles, Products 36.3 34.7 35.9 34.8 35.1 35.1 34.2 48.9 48.0 49.7 49.9 50.5 50.5 49.5 Fabrics 36.7 35.3 37.2 36.0 35.7 35.1 34.5 45.9 45.8 47.9 48.1 48.4 48.2 48.2 Wearing apparel 35 7 33.6 oo e 32.5 34.0 35.2 33.6 54.1 51.8 53.3 53.4 54.4 54.3 51 9 Leather, Manufactures 38.2 35.7 35.7 37.2 36.7 35.6 32.5 52.4 52.4 53.7 53.4 53.7 54.1 54.3 Food, Products. 40.1 39.3 40.5 39.6 39.4 39.8 39.4 62.9 62.7 63.3 64.1 63.9 64.1 64.3 Tobacco Manufactures 34 2 34 0 35.8 33.3 32.8 34.5 34.7 47.4 47.4 48.9 49.6 49.1 49.0 49 3 Paper, Printing 38.3 38.1 39.4 38.1 37.8 38.0 38.1 77.1 77.2 78.3 78.3 78.3 78.9 79 6 Chemicals, Petroleum, and Coal Products 38.5 38.2 39.0 38.4 38.4 38.4 38.5 72.8 72.1 75.1 75.6 75.6 74.6 74 2 Petroleum refining . 36.3 35.6 36.4 35.5 35.9 36.2 36.5 97.3 97.3 97.2 97.4 97.5 97.1 97.4 Other than petroleum refining. 39.4 39.1 39.8 39.4 39.2 39.2 39.2 64.3 63.5 67.5 68.0 68.1 67.0 66.5 Rubber Products 36.1 35.7 38.1 36.6 35.3 '35.8 36.0 76.3 76.0 77.6 77.6 77.7 78.0 77.9 'Revised. JULY 1940 713 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.] Month Total R b e u si i d ld e i n n t g ial Factories Com N m on er r c e i s a i l dentia E l d u b c u a il t d io in n g al i Other i P a u n u b d t l i i l c i p ti u w e b s o l 1 r ic ks 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. a 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. a 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 24.6 115.3 323.2 129.7 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 DRPennber 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» Privately-financed l 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 76 140 188 110 220 201 38 79 69 61 111 82 37 62 119 68 109 119 March _ 123 199 231 227 301 272 68 06 66 95 128 95 65 103 165 132 173 177 April 124 235 270 222 330 301 53 105 74 99 160 103 71 130 195 123 170 197 May 127 216 244 283 308 329 47 94 93 144 135 112 80 122 151 139 174 217 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 92 163 104 171 158 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. CONSTRUCTION CONTRACTS AWARDED, BY DISTRICTS COMMERCIAL FAILURES, 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 May April May Federal Reserve 1940 1939 1940 1939 district Boston 23,130 19,155 22,147 May April May May April May New York 62, 993 48,962 64, 852 Philadelphia 15, 408 17, 575 20, 855 Cleveland 34,089 31, 241 31, 043 Boston 88 106 86 1,154 1,391 1,245 New York 477 440 514 4,540 6,320 5,707 Richmond _ 39, 339 31, 625 31, 619 Philadelphia 71 99 103 1,072 1,466 1,021 Atlanta 31, 297 30, 608 29, 731 Cleveland 79 46 76 1,120 497 607 Chicago1 61,185 61, 094 52, 322 51 48 48 604 348 779* St. Louis* 20, 379 16,169 21,086 Atlanta 55 70 62 462 829 715 Chicago » 175 201 176 1,392 2,215 2,692 Minneapolis. _ 11,857 9,416 10, 557 St. Louis 43 38 24 415 438 221 Kansas City1 13,890 14, 505 8,298 Minneapolis 25 19 24 362 272 15b Dallas 15, 347 20,154 15, 977 Kansas City 37 55 74 302 422 774 Dallas 24 23 26 316 215 370 Total (11 districts) 328, 914 300, 504 308, 487 San Francisco 113 146 121 1,329 1,834 1,613 Total 1,238 1,291 1,334 13, 068 16, 247 15, 897 i Revised. Comparable figures for earlier months available on request. 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. 714 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 193 269 274 231 324 203 287 160 186 212 10 18 115 45 112 May . 201 290 257 249 P325 192 285 148 202 P211 9 5 109 47 P114 June 186 265 233 236 191 286 146 179 5 -21 87 57 July 180 268 228 230 195 265 141 169 16 3 87 61 August 179 277 231 250 193 246 166 176 -14 31 65 74 September 221 297 246 ••289 216 233 168 182 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 '3,177 2,423 3,084 1,960 2,318 33 265 1,134 '859 p Preliminary. r Revised. 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 February 1937, p. 152; July 1933, p. 431; and January 1931, p. 18. FREIGHT-CAR LOADINGS, BY CUSSES DEPARTMENT STORE SALES AND STOCKS [Index numbers; 1923-25 average=100] [Index numbers based on value figures; 1923-25 average=100] 1939 1940 Sales i Stocks (end of month) May Jan. Feb. Mar. Apr. May Adjusted Without Adjusted Without Month for seasonal seasonal for seasonal seasonal variation adjustment variation adjustment Adjusted for seasonal variation 1939 1940 1939 1940 1939 1940 1939 1940 Total - 62 78 73 69 70 72 Coal 51 83 68 66 75 78 Coke 42 90 65 70 73 73 January 88 92 69 71 67 68 60 61 Grain and grain products 81 73 75 75 79 74 February.... 87 89 69 71 68 71 65 68 Livestock 40 39 40 39 37 38 March... 88 89 82 86 68 70 69 71 Forest products _ 40 47 44 43 43 45 Ore 58 114 107 105 102 96 April 88 89 88 86 67 69 69 71 Miscellaneous 70 86 83 77 74 77 May 85 87 87 89 66 68 68 70 Merchandise» 61 62 61 60 59 60 June 86 83 67 64 July 86 60 67 60 Without seasonal adiustment August 89 69 67 65 September _ 91 97 68 71 Total 62 72 68 67 67 71 October 90 99 69 77 Coal . . _ . __ 44 95 80 70 63 67 November 95 106 71 82 Coke 40 106 88 73 62 70 December 96 168 68 64 Grain and grain products 73 66 69 69 70 66 Livestock 36 38 33 31 34 34 Year 90 68 Forest products _ 41 41 43 44 44 47 O M r i e s cellaneous - . 8 7 1 3 2 7 5 4 2 7 6 1 2 7 6 4 4 7 2 6 1 8 3 0 4 1 Based on daily average sales—with allowance for changes from Merchandise* 61 58 59 60 60 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. 1 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 com- BULLETIN for March 1938, p. 232. bining indexes for classes with weights derived from revenue data of the Interstate Commerce Commission. JULY 1940 715 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 Farm 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 r n ts d p T ro e d x u ti c le ts F m li u g a e h t l e t r i a n i n a g d ls a p n M r d o e d m t u a e c l t s t a s ] 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 l s 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 e h - 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 LOO.O 80.3 78.5 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 61.4 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 70.6 78.4 86.6 72.9 T3.3 86.9 86.2 75.3 81.5 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 71.6 76.2 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 96.2 82.6 89.7 77.8 1938 78.6 68.5 73.6 81.7 92.8 66.7 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—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 — 76.0 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 ]L04.6 75.5 73.9 95.8 92.8 77.6 87.8 77.6 November 79.2 67.3 72.3 84.0 ]L04.0 76.4 74.1 96.0 93.0 77.4 88.4 77.0 December 79.2 67.6 71.9 83.9 ]L03.7 78.0 72.8 96.0 93.0 77.7 88.5 77.4 1940—January 79.4 69.1 71.7 83.9 ]L03.6 77.9 72.7- 95.8 93.4 77.7 87.9 77.7 February 78.7 68.7 71.1 83 2 ]02.4 75.4 72.4 95.3 93.2 77.5 88.0 77.3 March 78.4 67.9 70.2 82.9 ]L01.8 74.0 72.2 95.5 93.3 77.0 88.0 76.9 April 78 6 69 4 71 6 82 5 ]01 8 72 9 71.8 94.5 92.5 76.8 88.4 77.7 May. _.. 78.4 67.9 71.4 82.5 101.3 72.9 71.7 94.5 92.5 76.7 88.5 77.7 Week ending— 1940—March 2 78 4 68 8 70 5 83 2 ]02 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 ]02.4 73.3 72.8 95.5 93.3 77.1 89.6 76 8 March 16 78.2 68.0 70.4 83.0 ]L02.5 73.0 72.6 95.5 93.2 77.0 89.6 76.9 March 23 77.9 67.5 69.9 82.9 ]02.1 72.7 72.6 95.4 93.3 76.9 89.5 76.5 March 30 77.9 68.1 69.8 82.8 ]02.0 72.5 72.3 95.5 93.1 76.7 89.5 76.6 April 6 77 6 67.0 69.7 82 7 ]01.6 71.9 72.5 95.4 93.2 76.5 89.4 76.6 April 13 78.0 68.0 70.8 82.7 ]02.1 71.9 72.5 95.4 92.8 76.6 89.9 76.6 April 20 . 78.5 69.6 71.9 82.6 ]02. 5 71.6 72.3 95.3 92.8 76.9 89.9 76.8 April 27 79.0 71.6 72.8 82.5 ]02.5 71.5 72.2 94.9 92.7 77.0 89.9 76.9 May 4 78 9 71.3 72 5 82 6 102 S 71.5 72.3 95.0 92.6 76.8 89.9 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 June l-__ 77.8 67.8 70.8 82.5 100. 5 72.2 72.3 94.7 92.5 76.6 89.9 76.9 June 8 77.4 66 7 70.5 82 4 99.6 71.9 72.2 94.8 92.1 76.4 89.9 77.0 June 15 77.4 66.8 70.2 82.4 99.6 71.8 72.2 94.9 92.4 76.4 89.9 77.2 June 22 __. 77.1 65.6 70.1 82.4 99.6 71.9 71.9 94.8 92.3 76.3 89.9 77.2 1939 194() 1939 1940 Subgroups Subgroups May Feb. Mar. Apr. May May Feb. Mar. Apr. May Farm Products: Metals and Metal Products: Grains 59.6 72.8 73.4 77.2 71.2 Agricultural implements 93.4 93.4 93.4 93.5 92.5 Livestock and poultry 73 2 65.6 67 1 68 4 69.6 Farm machinery 94.6 94.6 94.7 94.7 93.7 Other farm products 58 7 68 9 66 3 67 4 65 5 Iron and steel 95.7 96.3 96.4 94.3 94.2 Foods: Motor vehicl3S __ __ 93.0 94.7 94.8 94.8 94.8 Dairy products 58.6 80.0 78.6 77.4 72.8 Nonferrous mstals 73.1 79.2 79.7 79.2 80.3 Cereal products 73.8 82.4 82.4 83.2 81.0 Plumbing and heating _ 79.3 79.1 81.0 80.9 80.6 Fruits and vegetables _ 63.8 58.7 58.7 65.7 69.2 Building Materials: Meats .. 78.6 68.4 69.2 71.1 73.8 Brick and tile 91.7 91.2 90.4 90.2 90.2 Other foods 61.4 66 3 63.0 63 2 62.2 Cement 91.5 91.4 91.2 90.3 90.5 Hides and Leather Products' Lumber 91.2 97.6 97.8 96.1 96.6 Shoes 101.3 108.2 108.4 ]08.2 107.9 Paint and paint materials 81.6 86.8 87.2 86.7 86.0 Hides and skins 72.1 97.0 94.3 94.8 92.2 Plumbing and heating.. 79.3 79.1 81.0 80.9 80.6 Leather 83.1 94.2 93.5 93.2 93.6 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 materials 89.6 92.9 92.7 92.3 92.2 Textile Products: Chemicals and Allied Products i Clothing 81.7 84.9 85.1 84.7 85.0 Chemicals1 84.4 85.3 85.1 85.0 85.1 Cotton goods 63.3 73.6 71.8 70.2 69.4 Drugs and Pharmaceuticalsl 77.4 81.3 81.4 81.8 82.0 Hosiery and underwear 60.2 64.5 62.2 61.7 61.3 Fertilizer materials1 68.4 71.0 70.6 70.7 70.8 Silk 2 _ 45.6 51.6 49.9 45.4 47.0 Mixed fertilizersl 72.7 74.2 73.9 73.8 73.8 Rayon2 28.5 29.5 29.5 29.5 29.5 Oils and fats l 46.6 51.0 47.8 46.8 46.1 Woolen and worsted jroods 75.4 87.2 84.5 83.8 83.4 Housefurnishing Goods: Other textile products 65.3 76.8 74.9 74.6 75.7 Furnishings 89.8 94.2 94.2 94.5 94.8 Fuel and Lighting Material: Fuirniture 81.0 '81.5 81.5 81.9 81.9 Anthracite 75.3 79.2 79.2 77 4 76.5 Miscellaneous: Bituminous coal 99.0 98.2 97.3 96.4 95.8 Auto tires and tubes 60.5 55.6 55.6 58.0 58.0 Coke 104.2 109.7 109.6 109.6 109.6 Cattle feed 87.4 93.7 95.2 100.1 93.3 Electricity 79.3 78.2 77.1 80.4 89.5 89.0 89.5 90.7 Gas 86.0 81.6 80.4 82.0 34.2 38.7 38.3 39.4 44.1 Petroleum products. _ 52.5 50.9 50.4 50.4 50.7 Other miscell*meous 81.4 86.6 85.8 85.1 84.3 r Revised, i Revised series. * New series. Back figures.—For monthly and annual indexes of groups, see Annual Report for 1937 (table 86): for indexes of subgroups, see Annual Report for 1937 (table 87). 716 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 M 2 a 2 y M 2 a 9 y Ju 5 ne Ju 1 n 2 e Ju 1 n 9 e Mar. April May WEEKLY FIGURES Wednesday figures; in billions of MONTHLY FIGURES Index numbers RESERVES, GOLD, AND dollars BUSINESS CONDITIONS 1923-25=100 CURRENCY Wholesale commodity prices:4 United States: T M R G r e o o e s l n a d e U B s e rv s i u . y l t e r l o S s y i c n . B d k c G a c i a s n i o s c r k h v c o u ' u t c l n r a s e t t e e i d c o d i u n t— rit t i o e t s a . l .. . 3 3 , , 5 9 5 3 5 3 1 0 2 2 7 2 9 . . . . . ) 6 5 4 2 0 1 2 8 7 0 1 0 2 2 2 7 9 . . . . . ) 5 6 2 1 4 6 1 9 0 8 1 0 2 2 7 2 9 . . . . . ) 5 2 4 7 2 3 1 8 2 8 1 ( 7 2 2 2 9 . . . . . 0 7 4 4 2 5 3 2 8 0 2 1 0 2 2 2 7 9 . . . . ) . 7 5 4 2 7 4 4 7 0 7 E Fr n a g n A l F F O c a o a e l t n l h o r d m c e d r o s m p c r o m o m d o . m _ u d c i o t t d i s e i s ti es.__ 31, 3 3 3 3 3 3 1 2 1 2 1 2 1 8 0 6 7 7 4 2 7 0 8 . . . . . 9 2 9 4 5 " 1 8 7 6 0 7 2 1 9 7 8 . . . . . 5 6 4 1 6 P1 8 0 7 7 6 7 2 1 8 7 .9 . . . . 5 4 4 9 T E M R x r e e e c q m a e N u C R C s s b i s h u e e o r e s w i e r u r c r y e d e n a r s b Y v g t d r e r a e o e e o y r n s v p r c > k e k e o b i r s t s a v b y C — i n e a t s k i s b l t t a « s a y o n . n t » _ c a a k e _ e l _ s » s e » * 3, 6 7 7 6 7 3 7 7 1 3 6 6 1 3 . . . . . . . . 4 8 4 6 8 4 2 3 1 5 7 4 2 1 9 7 1 6 3 6 3 1 . . . . . . . . 4 8 4 8 6 5 2 3 1 5 6 2 4 0 1 8 1 3 6 6 3 1 . . . . . . . . 5 8 4 6 8 3 5 3 1 5 9 9 4 4 4 1 1 3 6 6 1 3 . . . . . . . . 5 6 9 6 5 5 8 2 1 9 0 2 1 7 5 7 P 1 p 3 6 1 6 3 . . . . . . . . 5 6 3 6 9 8 7 9 4 7 0 5 8 0 1 1 I M F F n a a d a c c n u t t T N D G o o u s o t r r f o e u r y y a t r n i r a c m a a d e p l t l m u a b u a p y r n r l p i r r a e y n l o o 8 b . o g . l d l . y l . e u s m p 6 c r t e o i n o d t n u 6 c tion:8 3 4 3 4 3 3 3 7 3 5 3 7 2 7 1 1 1 4 9 8 5 0 0 0 4 8 1 7 4 1 0 . . . 2 4 8 1 4 5 02 2 7 P P 9 9 9 6. . 4 0 Freight-car loadings 5 45 70 72 WEEKLY REPORTING Department store sales 6 47 89 87 MEMBER BANKS Department store stocks 6 47 70 Total, 101 cities: Loans and investments. 14 23.54 23.52 23.53 23.66 23.60 In millions of dollars Investments ___ 14 14.98 15.05 15.09 15. 19 15.15 Construction contracts awarded:7 T A i d d m j e u e L p s o o t d e a s e d n i p t s o s d . s e . i . t m s and 1 1 1 5 5 4 2 8 0 5 . . . 5 3 2 6 1 0 2 8 0 5 . . . 4 3 2 8 1 9 20 8 5 . . . 3 4 3 1 4 2 2 8 5 0 . . . 3 4 6 1 7 2 2 8 5 0 . . . 4 3 5 4 1 0 Exp T o R O r o e t t h s t s a i e a d l r e n n d t i i a m l ports: 4 4 4 1 1 1 2 1 1 5 0 5 5 5 0 2 1 1 6 1 4 3 5 8 P P P U 1 2 1 6 7 8 5 New U D F Y o . o r m o S e r i . e k g s G 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 s a a i l n t a s c n e c s e . s . 1 1 1 5 5 5 8. . . 4 6 5 9 9 8 8. . . 4 7 5 3 1 8 8. . . 4 7 5 9 0 8 8. . . 4 5 6 5 8 9 8 . . 5 5 8 3 Inco E E G m x x e e c p n e o e p s r r a s a t y s l o m i f ( m i e e n n x p c p t o l s . o r : r t r s e t s - exports). 4 4 4 9 9 9 3 2 1 5 1 3 1 7 5 3 2 1 2 1 1 4 2 2 P P P 2 1 3 1 1 2 1 4 5 100 c B U O C it o r . t i h o e m S e k s . m r e o G r s e u s e o r t ' c c l v s o u i i ' a t d r a l i e o n t l i s b N o e l s a i e n g w s a t i Y o o n r s k .. : 1 1 1 1 6 6 6 6 5 1 1 > . . . 4 2 0 67 6 4 0 ' 5 1 1 . . . . 6 1 3 3 6 0 2 5 5 1 1. . . . 6 3 1 3 6 0 7 1 5 1 1 . . . . 2 6 3 3 1 7 2 1 5 1 1 . . . . 6 2 2 2 9 7 1 7 Cash T T S O a o f o t l a h t t a r a a e r m l i l r e 6 6 u s i n n a a c n d o d j m u w s e t : a e g d e s . 5 5 5 5 5 0 0 0 0 3 2 5 5 , , , , 1 7 9 9 9 3 2 3 1 5 6 8 3 2 5 5 , , , , 1 7 9 8 8 1 1 9 6 3 3 9 P P P P 5 2 5 3 , , , , 9 6 1 7 1 8 4 3 9 0 7 9 U C O o . t h m S e . m r G s e e o rc c v i u ' a t r l i o t l i b o e l s a i n g s a tions.. 1 1 1 7 7 7 6 2 2 . . . 4 2 7 6 3 2 6 2 2 . . . 3 7 2 9 1 5 6 2 2 . . . 3 7 2 9 1 3 6 2 2 . . . 4 7 2 1 1 6 6 2 2 . . . 4 7 2 2 2 6 T L C i o r v o t e a p s l s t 8 8 o . ck and prod _ u _ c ts9. 5 5 5 1 1 1 6 3 2 3 0 0 6 1 4 6 3 1 7 2 8 6 7 6 P P 1 4 8 18 0 MONEY RATES AND SECURITY Averages of daily figures^, per cent Government payments... 51 67 65 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 B C U U U a o . . . n m 8 8 S k . . . m e T T T r e r s r r r e e e ' c a a a a i c a s s s c l u u u e r r r p p y y y a t p a b n b e n i o o l r c t n l e s e d s s s _. 21, 2 2 1 1 2 1 1 9 9 5 2 . . . . . 5 4 4 0 7 7 6 4 8 7 2 . . . . . 5 4 8 4 1 8 6 3 4 0 2 . . . . . 5 4 1 4 8 9 6 1 4 4 2. . . . . 4 5 4 8 1 1 6 4 0 2 2 . . . . . 4 5 7 0 3 4 6 2 9 3 Cen U E N t F r r n a n e a l g t i n h t l g e c a e o d e n r l l d d a S n t r a e d t s s e e s rves: 1 0 2 8 . ) . 0 4 0 3 1 0 2 8 . . . ) 0 6 7 0 5 7 P 1 0 P 2 9 . . . ) 2 0 6 1 0 5 C C o o r r p p o or 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 3 5 . .1 0 3 2 3 5 . . 0 2 4 2 3 5 . . 0 2 3 2 2 5 . . 9 1 8 9 5 2 . . 0 9 9 2 U. d e S B b . t o — n G d t o s o v ta 't l interest-bearing 2 2 0 0 2 4 9 1 . . 9 6 8 9 2 4 9 2 . . 8 12 0 4 2 2 9 . . 2 8 5 6 Wednesday figures: in unit indicated N Bi o ll t s es 2 2 0 0 6 1 . . 1 3 3 1 6 1 . . 1 3 3 1 6 1 . . 1 3 3 0 Stock prices, total * 27, 29 70 71 70 75 76 Special issues 20 4.86 4.88 4.97 Industrial. 27 82 82 81 87 Volu P R m u a e b il l r i o c o a f d u t t i r l a it d y i ng» (mill, 2 2 7 7 2 7 1 1 2 7 2 3 2 7 1 2 7 2 6 3 QUARTERLY FIGURES' J S u e l p y t - . O D c ' t e . c - . M Ja a n r . . shares) 29 1.92 .80 .49 1.01 .67 1939 1939 1940 Brokers' loans (mill, dollars) 29 544 478 437 444 413 In millions oj dollars BUSINESS CONDITIONS Figures for week3; in unit indicated Domestic corporation security Wholesale commodity prices: * issues, total 28 653 509 557 All commodities 33 77.8 77.8 77.4 77.4 77.1 New 28 92 67 107 Farm products _._ 33 66.8 67.8 66.7 66.8 65.6 Refunding 28 560 442 450 Foods 33 70.7 70.8 70.5 70.2 70.1 Other commodities 33 82.7 82.5 82.4 82.4 82.4 Steel plant operations Per cent per annum (per cent of capacity) 38 73.0 76.9 80.3 84.6 87.7 Justomers' rates: Au (t t h om ou o s b . i c le a rs p ) r oduction 38 96.8 61.0 95.6 93.6 90.1 7 N ew ot h Y e o r rk N C o i r ty th ern and 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 oduction 39 2,449 2,332 2,453 2,516 2,508 11 E S a o s u te th rn e r c n i ti a e n s d Western 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 39 687.4 639.1 702.6 712.4 728.1 cities __ 23 3.31 3.32 3.35 p Preliminary. • Estimated. 6 Points in total index of manufacturing production. i Less than $5,000,000. 7 Three-months moving average adjusted for seasonal variation, 'Averages of daily figures, see footnote 3. s Series revised for the period from January 1936 to November 3 Figures are shown under the Wednesday date included in the weekly period. 1939, inclusive. Back figures may be obtained from the Division 4 Index numbers, 1926=100. of Research and Statistics. 5 Adjusted for seasonal variation. 'Banking statistics for call report dates are shown in table on following page. NOTE.—Copies of this chart book can be obtained from the Board at a price of 50 cents each. JULY 1940 717 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] 1937 1938 1939 1940 Chart book June Dec. Mar. June Sept. Dec. Mar. June Oct. Dec. Mar. page 30 31 7 30 28 31 29 30 2 30 26 All banks in the United States: Total deposits and currency 10 57.42 56.83 56.78 56.74 P57. 65 P59. 12 P59. 15 P61. 00 P63.03 P64. 40 P65. 05 Time deposits 10 25.96 26.26 26.34 26.27 P26. 27 P26. 38 P26. 58 P26. 83 ?26.91 P27. 00 P27. 30 Demand deposits adjusted 10 25.26 24.05 24.13 24.39 P25. 10 P26. 01 P26. 01 P27. 32 P29.10 P30. 05 P30. 60 Currency outside banks 10 5.53 5.69 5.50 5.47 P5.50 P5.83 P5.68 P6.05 P6. 23 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 H 11 35 11.52 11.59 11.56 11.46 11.51 cll. 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 4 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 Investments, total 11 18 45 17.79 17.98 17.78 18.69 18.86 19.05 19.46 19.61 19.98 20.22 U. S. Government obligations, total ._ 12 12.69 12.37 12.45 12.34 13.01 13.22 13.35 13.78 13.81 14.33 14.42 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 (5) Loans, total 11 14.29 13.96 13.55 12.94 12.94 13.21 13.05 13.14 13.47 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 (5) Brokers' loans 13 1 54 .95 .88 .70 .71 .97 .84 .73 .79 (5) Loans on securities (excluding brokers' loans) 2 . 13 2.83 2.75 2.67 2.61 2.59 2.78 .73 .74 (5) .70 (5) Real estate loans 12, 13 2.51 2.55 2.56 2.61 2.66 2.72 2.75 2.83 (5) 2.96 (5) Other loans, total12 12 7.41 7.71 7.45 7.01 6.97 2 8. 74 8.73 8.85 (5) 9.51 (5) Commercial loans 2 13 6.66 7.00 6.75 6.40 6.36 2 5. 45 5.53 5.57 (5) 6.12 Open-market paper 13 .64 .64 .61 .49 .48 .44 .42 .42 .45 (0 Loans to banks 13 .12 .07 .10 .12 .13 .12 .10 .06 .06 (») All other loans 3 32.73 2.67 2.80 (5) 2.89 v Preliminary. c Corrected. »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. » Not originally plotted in chart book. * 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 Branches End of year figures Other than mutual except where otherwise savings and Total indicated private banks National State Mutual Private2 In Outside savings head- head- Insured i Not office office insured i cities cities Number of Banking Offices 1933.. _ . 6,275 1,817 9,141 704 103 17,940 1934 6,705 1,961 3 9, 579 705 246 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 *684 «67 18, 621 Number of Banks (Head Offices) 1933 5,154 857 8,HI 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 7C)0 125 5 2,911 1,784 1,127 1934 _....„ . . . 1,243 981 778 126 5 3,133 L, 776 1,357 1935 1,329 952 828 42 128 5 3,284 L, 764 1,530 1936 1,398 981 848 39 128 5 3,399 L, 749 1,650 1937 1,485 994 891 37 128 5 3,540 L, 757 1,783 1938 1,499 992 908 41 135 5 3,580 L, 743 1,837 1939.__ 1,518 1,002 927 44 132 6 3,629 ,738 1,891 1940 (March 31)... _ _. 1,520 997 927 45 133 6 3,628 L, 729 1,899 * 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 Currency and, accordingly, only such private banks as report to State banking departments are in the figures shown for subsequent years. 3 Separate figures not available for branches of insured and not insured banks. 4 Comprises 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." 5 Comprises 1 insured bank with no branches and 60 uninsured banks with 6 branches. 718 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EARNINGS AND EXPENSES OF MEMBER BANKS EARNINGS, EXPENSES, AND DIVIDENDS OF ALL MEMBER BANKS DURING 1939, BY SIZE OF BANK [Dollar amounts in thousands] Banks operating throughout entire year, with deposits on December 30,1939 of Total Banks all operating member $100,000$100,001$250,001$500,001 $750,001 $1,000,001$2,000,001 $5,000,001 $50,000,001 less than banksi and to to to to to to to and 1 year 2 under $250,000$600,000$750,000$1,000,000$2,000,000$5,000,000$50,000,000 over Earnings: Interest and discount on loans. 560, 449 139 3,096 12, 746 14,412 13,694 42, 223 62,093 143, 270 266,709 2,067 Interest and dividends on investments ..- ___-_. 444,145 19 800 4,617 6,551 7,182 24,875 42,189 98, 678 257,875 1,359 Collection charges, commissions, fees, etc. _ _ 32,019 9 212 945 997 864 2,368 3,089 7,780 15, 538 217 Foreign department 11, 777 97 559 11,111 Trust department 90, 999 2 136 33 86 501 2,363 16, 771 68,995 2,112 Service charges on deposit accounts 54, 448 217 1,017 1,226 1,206 4,264 7,502 18, 482 20, 214 317 Rent received 83,005 4 117 729 1,015 995 3,398 7,157 25, 589 43,689 312 Other current earnings _ 19,022 1 50 186 201 228 664 1,445 3,699 12, 500 48 Total current earnings 1, 295,864 175 4,494 20,378 24,435 24, 255 78,301 125,935 314,828 696,631 6,432 Expenses: Interest on time and savings deposits . _ _ 159,101 460 2,986 4,115 4,578 14,952 24, 579 47, 070 59,695 661 Salaries—officers 150,140 6C 1,284 4,795 5,036 4,501 12, 698 16, 972 37, 710 66,076 1,008 Salaries and wages—employees (other than officers) 1,337 Fees paid to directors and members of executive, dis- 237, 791 221 1,329 1,917 2,173 8,625 17, 203 56,041 148,940 count, and advisory committees .___ 46 Interest and discount on borrowed money _- 7,5 1 3 6 6 3 1 5 7 0 27 1 3 6 32 1 1 7 31 1 8 5 97 2 7 9 1,35 1 2 5 2,18 5 4 2 2,015 9 2 Real estate taxes 34,881 3 117 476 565 529 1,932 3,389 9,707 18,021 142 Other taxes _ _ _ .. 50, 557 8 206 864 955 953 3,036 4,639 11, 500 28,147 249 Other expenses 254, 595 43 848 3,710 4,097 3,971 12, 687 21,461 63, 248 143,009 1,521 Total current expenses 894, 764 125 3,193 14,449 17,023 17,038 54,936 89,610 227, 512 465,912 4,966 Net earnings. ._ _ ___ _ .. _ 401,100 50 1,301 5,929 7,412 7,217 23,365 36,325 87,316 230, 719 1,466 Recoveries, promts on securities, etc.: Recoveries on loans _ 54,622 8 272 848 921 937 2,687 4,117 12,334 32,314 184 Recoveries on investments. 56,101 39 389 629 588 2,534 4,931 17, 624 28,987 380 Profits on securities sold.._ _ 189, 739 5 183 1,312 i,840 2,086 7,980 14,207 44,981 116,629 516 All other 26,089 1 59 284 312 298 952 1,971 5,310 16, 792 110 Total . 326, 551 14 553 2,833 3,702 3,909 14,153 25, 226 80,249 194, 722 1,190 Losses and depreciation: On loans 108,125 25 426 1,368 1,645 1,570 4,974 7,871 21,402 68,470 374 On investments-.. 179, 563 1 163 1,260 2,152 2,466 8,627 16, 525 47,001 100,777 591 On banking house, furniture and fixtures 37, 985 6 167 667 772 705 2,478 4,369 9,805 18, 678 338 Allother 54,497 4 139 479 508 605 2,153 4,419 12, 516 33,409 265 Total 380,170 36 895 3,774 5,077 5,346 18, 232 33,184 90, 724 221, 334 1,568 Net profits _ 347, 481 28 959 4,988 6,037 5,780 19, 286 28, 367 76,841 204,107 1,088 Cash dividends declared: On preferred stock 3_-_ 13, 686 33 209 256 233 880 1 820 4 601 5,547 107 On common stock 193, 451 20 476 2,019 2,311 2, 283 7,174 10,306 27,025 141,077 760 Totals 207,137 20 509 2,228 2,567 2,516 8,054 12,126 31, 626 146,624 867 Total deposits on Dec. 30, 1939 49, 362, 775 2,053 75,015 399, 503 527,068 558,114 1,899, 607 3,274,819 10,067,129 32, 381,149 178,318 Number of officers on Dec. 30,1939_ 34,172 51 931 2,607 2,091 5,052 4,937 7,084 8,190 343 Number of employees (full and 2,886 part-time) on Dec. 30, 1939 r158,137 11 409 2,315 2,305 7,695 13,174 39, 659 89,349 1,276 Number of banks reporting dur- 1,944 ing the year ended Dec. 30,1939. _ 6,393 26 398 849 645 1,348 1,063 768 126 110 1,060 r Revised. NOTE—For statistics of earnings and expenses of all member banks during 1927-1939 and of member banks in each Federal Reserve district during 1938 and 1939, see May 1940 BULLETIN, pages 460-465. For averages of individual bank operating ratios during 1939, by Federal Reserve districts, size of banks, and ratio of time to total deposits, see June 1940 issue of Federal Reserve BULLETIN, pages 588-601. 1 Figures differ slightly from those shown on page 460 of the May 1940 Federal Reserve BULLETIN, due to minor adjustments made incident to the recompilation of figures by size of bank. 2 Includes five banks with no deposits, operating throughout the year. 3 Includes interest on capital notes and debentures. JULY 1940 719 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Earnings and Expenses of Member Ba?iks—Continued Earnings, Expenses, and Dividends of National Bank Members During 1939, by Size of Bank [Figures compiled by Comptroller of the Currency] [Dollar amounts in thousands] Total Banks operating throughout entire year, with deposits on December 30, 1939 of Banks oil operating m na e b t m a io n b n k e a r l s $ u 10 a n 0 n d , d 0 er 00$ $ 1 2 0 5 t 0 0 o , , 0 00 0 0 1$ $ 2 5 5 0 t 0 0 o , , 0 00 0 0 1$ $ 5 7 0 5 t 0 0 o , , 0 0 0 0 0 1 $ 4 1 5 ,0 75 0 to 0 0 , , 0 0 0 0 1 0 $ $ 1 2 , ,0 0 0 0 to 0 0 , , 0 0 0 0 0 1$ $5 2 , , 0 0 0 t 0 o 0 0 , , 0 0 0 0 1 0$ $ 5 5 0 , , 0 0 0 t 0 o 0 0 , , 0 0 0 0 1 0 $50, o a 0 v n 0 e d 0 r ,001 le 1 s s y e t a h r a n * Earnings: Interest and discount on loans. 386,134 118 2,664 10, 607 12,019 11, 463 35, 413 49, 728 94,044 169,318 760 Interest and dividends on investments 297,084 17 710 4,058 5,626 6,270 21,875 35, 206 67,861 155,092 369 Collection charges, commissions, fees, etc.__ 22,093 8 178 783 814 715 1,989 2,387 5,080 10,059 80 Foreign department 6,795 2 8 57 367 6,361 Trust department 31,414 2 134 28 60 334 1,685 7,879 21, 274 18 Service charges on deposit accounts . 37,447 1 180 834 1,029 1,016 3,616 5,899 12, 394 12, 358 120 Rent received 51,902 3 102 620 856 826 2,935 5,700 16,294 24,449 117 Other current earnings 13, 205 1 45 159 170 186 487 975 1,955 9,206 21 Total current earnings 846,074 148 3,881 17,197 20, 542 20,536 66, 657 101, 637 205, 874 408,117 1,485 Expenses: Interest on time and savings deposits 113,874 5 392 2,519 3,454 3,873 12,800 19, 804 30, 463 40, 280 284 Salaries—officers 100,447 51 1,111 4,015 4,208 3,800 10, 702 13, 677 24, 892 37, 758 233 Salaries and wages—employees (other than officers) 145, 721 4 190 1,122 1,613 1,849 7,382 13, 836 35, 844 83, 614 267 Fees paid to directors and members of executive, discount, and advisory committees 5,316 44 230 280 270 856 1,121 1,506 999 10 Interest and discount on borrowed money 100 1 6 14 16 9 19 9 25 1 Real estate taxes 21, 814 2 104 403 477 447 1,649 2,727 5,886 10,059 60 Other taxes 32, 518 6 179 718 . 802 797 2,539 3,764 7,454 16, 238 21 Other expenses 159, 992 38 732 3,150 3,438 3,358 10,804 17,007 41, 422 79, 671 372 Total current expenses 579, 782 107 2,758 12,171 14,288 14,403 46, 751 71, 945 147,492 268, 620 1,247 Net earnings 266, 292 41 1,123 5,026 6,254 6,133 19,906 29, 692 58,382 139, 497 238 Recoveries, profits on securities, etc.: Recoveries on loans 39, 728 6 226 720 773 662 2,303 3,354 7,930 23, 704 50 Recoveries on investments 33, 628 34 344 542 511 2,224 3,816 12,173 13,825 159 Profits on securities sold 124, 473 5 165 1,143 1,636 1,858 7,010 11,776 30,119 70, 539 222 All other 12, 479 1 49 232 253 252 750 1, 476 3,211 6,190 65 Total 210,308 12 474 2,439 3,204 3,283 12, 287 20,422 53, 433 114, 258 496 Losses and depreciation: On loans 66, 983 23 371 1,196 1,430 1,313 4,200 6,331 12, 974 39,034 111 On investments.. _ 109,002 1 151 1,126 1,845 2,127 7,499 13, 358 31, 535 51,061 299 On banking house, furniture and fixtures 27,855 5 139 572 628 611 2,147 3,546 6,739 13,439 29 All other 22, 058 4 109 415 418 425 1,689 3,024 5,669 10, 218 87 Total 225, 898 33 770 3,309 4,321 4,476 15, 535 26, 259 56,917 113, 752 526 Net profits 250, 702 20 827 4,156 5,137 4,940 16, 658 23, 855 54, 898 140,003 208 Cash dividends declared: On preferred stock 8,905 27 188 235 206 747 1,379 2,676 3,429 18 On common stock 121,941 12 417 1,708 1,978 1,998 6,130 8,599 18,155 82,851 93 Total _ . 130,846 12 444 1,896 2,213 2,204 6,877 9,978 20,831 86, 280 111 Total deposits on Dec. 30, 1939 31, 581, 573 1,759 64,152 335, 576 440,455 471, 742 1, 625,869 2, 668,135 6, 927, 996 18,963, 816 82,073 Number of officers on Dec. 30,1939_ 25, 617 45 806 2,451 2,207 1,777 4,327 4,015 5,138 80 Number of employees (full and 4,771 part-time) on Dec. 30, 1939 '99, 243 8 349 1,625 1,954 1,953 6, 573 10, 559 50,621 309 Number of banks reporting dur- 25, 292 ing the year ended Dec. 30,1939. _ 5,209 22 340 890 709 546 1,157 872 78 40 555 r Revised. Back figures.—See annual reports of the Comptroller of the Currency. * Includes one bank with no deposits, operating throughout the year. 720 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Earnings and Expenses of Member Banks—Continued Earnings, Expenses, and Dividends of State Bank Members During 1939, by Size of Bank1 [Dollar amounts in thousands] Baiaks operating throughout entire year, with deposits on December 30,1939 of Total, Banks all State operating me b m a b n e k rs2$10 a 0 n , d 000$10 t 0 o ,001$25 t 0 o ,001$50 t 0 o ,001 $75 t 0 o ,001 $1,00 to 0,001$2,00 to 0,001 $5,00 to 0,001 $50, a 0 n 0 d 0,001 le 1 s s y e t a h r a 3 n under $250,000$500,000$750,000$1,000,000$2,000,000$5,000,000$50,000,000 over Earnings: Interest and discount on loans. 174,315 21 432 2,139 2,393 2,231 6,810 12, 365 49, 226 97,391 1,307 Interest and dividends on investments 147,061 2 90 559 925 912 3,000 6,983 30,817 102, 783 990 Collection charges, commissions, fees, etc 9,926 1 34 162 183 149 379 702 2, 700 5,479 137 Foreign department 4 982 40 192 4,750 Trust department 59, 585 2 26 167 678 8,892 47, 721 2,094 Service charges on deposit accounts. 17,001 9 37 183 197 190 648 1,603 6,088 7,856 197 Rent received 31,103 1 15 109 159 169 463 1, 457 9,295 19, 240 195 Other current earnings. __ _ _ 5,817 27 31 42 177 470 1,744 3, 294 27 Total current earnings._ ... 449, 790 27 613 3,181 3,893 3,719 11, 644 24, 298 108,954 288, 514 4,947 Expenses: Interest on time and savings deposits. ... 45, 227 68 467 661 705 2,152 4,775 16, 607 19,415 377 Salaries—officers 49, 693 9 173 780 828 701 1,996 3,295 12,818 28, 318 775 Salaries and wages—employees (other than officers) 92,070 1 31 207 304 324 1,243 3,367 20,197 65, 326 1,070 Fees paid to directors and members of executive, discount, and advisory com- 2,220 6 43 41 48 121 231 678 1,016 36 Interest and discount on borrowed money 63 1 2 1 6 10 6 27 8 2 Real estate taxes 13,067 1 13 73 88 82 283- 662 3,821 7,962 82 Other taxes.._ . 18, 039 2 27 146 153 156 497 875 4,046 11,909 228 Other expenses . 94, 603 116 560 659 613 1,883 4,454 21,826 63, 338 1,149 Total current expenses 314,982 18 435 2,278 2,735 2,635 8,185 17,665 80,020 197, 292 3,719 Net earnings. 134,808 9 178 903 1,158 1,084 3,459 6,633 28,934 91, 222 1,228 Recoveries, profits on securities, etc.: Recoveries on loans 14,894 2 46 128 148 275 384 763 4,404 8,610 134 Recoveries on investments 22, 473 5 45 87 77 310 1,115 5,451 15,162 221 Profits on securities sold 65, 266 18 169 204 228 970 2,431 14,862 46,090 294 All other 13, 610 10 52 59 46 202 495 2,099 10,602 45 Total 116,243 2 79 394 498 626 1,866 4,804 26,816 80,464 694 Losses and depreciation: On loans 41,142 2 55 172 215 257 774 1,540 8,428 29,436 263 On investments 70, 561 12 134 307 339 1,128 3,167 15,466 49, 716 292 On banking house, furniture and fixtures 10,130 1 28 95 144 94 331 823 3,066 5,239 309 All other 32,439 30 64 90 180 464 1,395 6,847 23,191 178 Total 154, 272 3 125 465 756 870 2,697 6,925 33,807 107, 582 1,042 Net profits 96, 779 8 132 832 900 840 2,628 4,512 21, 943 64,104 880 Cash dividends declared: On preferred stock 4 4,781 6 21 21 27 133 441 1,925 2,118 89 On common stock _. 71, 510 8 59 311 333 285 1,044 1,707 8,870 58,226 667 Total • . 76,291 8 65 332 354 312 1,177 2,148 10, 795 60,344 756 Total deposits on Dec. 30, 1939 17, 781, 202 294 10,863 63, 927 86, 613 86, 372 273, 738 606, 684 3,139,133 13, 417,333 96,245 Number of officers on Dec. 30,1939. 8,555 6 125 435 400 314 725 922 2,313 3,-0E2 263 Number of employees (full and part-time) on Dec. 30, 1939 58, 894 3 60 319 361 352 1,122 2,615 14,367 38, 728 967 Number of banks reporting during the year ended Dec. 30,1939. _ 1,184 4 58 170 140 99 191 191 213 48 70 1 Corresponding figures for 1938 appear in the May 1939 BULLETIN, p. 379. 2 Figures differ slightly from those shown on p. 460 of the May 1940 BULLETIN, due to minor adjustments made incident to the recompilation of figures by size of bank. 3 Includes four banks with no deposits, operating throughout the year. * Includes interest on capital notes and debentures. JULY 1940 721 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTERNATIONAL FINANCIAL STATISTICS PAGE Gold reserves of central banks and governments . 724 Gold production 725 Gold movements 725-726 International capital transactions of the United States.. . 727-731 Central banks 732-735 Bank for International Settlements... 736 Money rates 736 Discount rates of central banks... 737 Commercial banks 737-738 Foreign exchange rates . 739 Price movements: Wholesale prices 740 Retail food prices and cost of living 741 Security prices 741 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. 723 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 (52 End of month c tr o i u e n s) - 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 i r s 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 5,445 590 573 624 8 275 19 134 29 1935— Deeember. 21,604 10,125 1,648 4,395 611 438 464 444 17 275 19 189 29 1936—December. 22,630 11,258 2,584 2,995 632 490 655 501 25 275 20 188 29 1937—December. 23,964 12,760 2,689 2,564 597 930 648 469 32 274 24 184 30 1938—December. 25,468 14, 512 2,690 2,435 581 995 431 32 274 24 192 30 1939—May 25,119 15,957 1,067 2,574 524 823 428 33 274 24 214 30 June _. 25, 270 16,110 1,067 2,574 540 800 428 34 274 24 213 July.. 25,492 16,238 1,162 2,574 573 427 34 274 24 212 August 26,097 16,646 1,162 2,714 614 585 431 35 274 24 218 September. 25, 234 16,932 1 2,714 615 752 585 449 36 274 24 218 30 October.... 25,303 17, C91 1 2,714 611 754 579 449 37 274 24 212 30 November. 25,513 17,358 1 2,714 608 700 559 453 38 274 24 213 30 December 25,702 17,644 1 2,714 609 547 466 40 274 24 214 30 1940—January... '25,907 17,931 1 2,714 /609 535 466 41 274 24 211 30 February.. 26,197 18,177 1 2, 714 /609 690 525 472 42 274 24 213 30 March 25, 695 18,433 1 2,000 /609 519 482 42 274 24 211 30 April 26,015 18,770 1 2,000 /609 650 514 /482 44 /274 24 212 30 May 26, 268 19,209 1 P2, 000 /609 /650 /482 /44 /274 /24 5 /30 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 De a n rk - Egypt m G a e n r y - 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 60 55 32 23 518 394 25 61 19 90 1935—Dec... 112 54 55 33 23 270 425 84 20 84 1936—Dec. _. 91 54 55 27 25 208 463 98 20 75 1937—Dec... 92 53 55 28 25 210 261 82 20 83 1938—Dec. _ 83 53 55 29 37 193 164 23 94 20 85 1939—May.. 65 53 55 29 24 /193 164 23 107 19 84 June 62 53 55 /29 24 /193 164 23 107 19 84 July... 60 53 55 /29 24 /193 164 80 23 107 19 84 Aug.._. 60 53 55 /29 24 /193 164 23 107 20 '84 Sept.... 58 53 55 /29 24 /193 164 23 107 20 '84 Oct..... 57 53 55 /29 24 /193 164 23 103 19 Nov.... 56 53 55 /29 24 /193 164 23 103 19 Dec... 56 53 55 '29 24 144 164 90 23 94 20 1940—Jan.—. 56 53 55 /29 24 /144 164 90 23 84 20 Feb.... 56 53 55 /29 28 24 /144 164 90 23 84 20 Mar.... 56 53 /55 /29 28 24 137 164 90 23 /84 /20 Apr 56 53 /55 '29 28 24 /137 164 100 23 /84 /20 May... /56 /53 /29 /28 /24 /137 A64 /100 /23 /84 /20 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 S f o r u i t c h a Spain S d w en e- T k u ey r- g U u r a u y - Y sla u v g i o a - O c tr o t i u h es n e r - 2 E m n o d n t o h f U S n ta it t e e d s U K d n i o i n m t g ed - France g B iu e m l- 1934—Dec. . 31 1934— Dec 104 184 740 159 22 161 1935—Dec.- 63 1935—Dec 109 212 735 186 168 1936—Dec... >934 93 1 1 9 9 3 3 5 7 — — D D e e c c 1 1 1 2 4 0 2 1 0 8 3 9 / / 7 7 1 1 8 8 2 2 4 4 0 4 1 1 8 8 3 5 1 1 9 9 3 3 8 7 — — M D a e r c .. . . . «1,395 81 193&-Dec 133 220 /525 321 143 1,489 June.. «44 02 1939—May 136 218 /525 344 126 Sept... 759 June 137 219 /525 346 134 Oct. «103 July 137 219 /525 348 135 Nov... 130 Aug 148 222 '525 355 136 Dec... 331 44 Sept 149 234 /525 357 131 1939—Jan.... 381 Oct. 150 243 /525 332 156 465 Nov 151 254 /525 333 68 156 Feb... 164 51,732 559 Dec.—.. 152 249 /525 151 Mar... 455 jiayl". 477 1940—Jan 152 253 /525 258 60 '137 June.. 85 17 Feb 153 268 /525 218 /68 61 147 Sept.. 164 Mar 153 272 /525 173 /68 61 149 Dec.. 156 Apr 154 279 /525 179 /68 62 150 May /69 n 54 /279 /525 189 /68 /62 150 p Preliminary. r Revised. i Reported at infrequent intervals or on de- / Figure carried forward from last previous official report, as indicated by last previous layed basis: U. S.—Exchange Stabilization Fund unfootnoted figure except in the case of Spain; Spanish figures officially reported on Aug. 1, (Special A/c No. 1); U. K.—Exchange Equalisa- 1936, and April 30, 1938. tion Account; France—Exchange Stabilization 1 Certain figures included in total are preliminary or are carried forward from previous report Fund and Rentes Fund; Belgium—Treasury. dates (see footnote /). Also see section at end of table for data relating to certain additional Gold in Canadian, Netherlands, and Swiss gold reserves held by Governments. Funds, and in some other central reserves, not 2 These countries are: Albania, Algeria, Australia, Austria through Mar. 7, 1938, Belgian officially reported. Congo, Bolivia,China, Danzig through Aug. 31, 1939, Ecuador, El Salvador, Estonia, Guate- » Figure for Mar. 1937, first date reported. mala, Finland, Latvia, Lithuania, Morocco, and Thailand (Siam). Figures for certain of these « Figure for Sept. 1937. countries have been carried forward from latest report date (see footnote/). * First date reported. NOTE—For back figures and description of table see footnotes to table in BULLETIN for « Transfers in 1939: from Bank to Account, December 1937, p. 1262, and August 1936, p. 667; also see BULLETIN for July 1936, pp. 544-547, $1,648,000,000 on Jan. 6, and $1,162,000,000 on and June 1933, pp. 368-372. Sept. 6; from Account to Bank, $26,000,000 on Fcr details regarding special transfers of gold by central banks to 'Government exchange Mar. 1, and $94,000,000 on July 12. funds, and vice versa, see notes to section at end of table and notes to tables on central banks, pp. 732-733. 724 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 dollars] Estimated Production reported monthly world ! Year or month pr t o i d on uc- Africa North and South America Other U o .S ut . s S i . d K e . Total A So fr u ic th a d K e h s o i - a A W fr e ic st a B C e o l n g g ia o n U St n a i t t e e s d i Canada Mexico Co b l i o a m- Chile Au li s a tra- B In ri d ti i s a h $1=25-8/10 grains of gold 9/10 fine; i. e., an ounce of fine gold=$20.6? 1929- 382, 532 352,237 215,242 11,607 4,297 2,390 45,651 39,862 13,463 2,823 683 8,712 7,508 1930. . 401,088 365,258 221,526 11,476 4,995 2,699 47,248 43,454 13,813 3,281 428 9,553 6,785 1931-. 426,424 386,293 224,863 11,193 5,524 3,224 49, 527 55,687 12,866 4,016 442 12,134 6,815 1932_. 458,102 413,459 238,931 12,000 5,992 3,642 50,626 62,933 12,070 5,132 788 14, 563 6,782 1933. 469,257 411,208 227,673 13,335 6,623 3,631 52,842 60,968 13,169 6,165 3,009 16,873 6,919 $1^=16-6/21 grains of gold 9/10 fine; i. e., an ounce of fine gold=$S5 794,498 696, 218 385,474 22,578 ll, 214 6,148 89,467 103.224 22,297 10,438 5,094 28,568 11,715 1934- 823,003 707,288 366,795 24,264 12,153 6,549 108,191 104,023 23,135 12,045 8,350 30,559 11,223 1935- 882,533 751,979 377,090 25,477 13, 625 7,159 126,325 114,971 23,858 11, 515 9,251 31,240 11,468 1936. 971,514 396,768 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 8,01« 168,159 143,367 29,591 15,478 9,544 46,982 11,607 1938- 1,132,856 957,212 425, 649 28,532 24,670 8,470 178,143 165,379 18,225 10, 290 54,264 11,284 1939. 1,204,954 1,018, 375 448, 753 28,009 28, 515 8,759 195,298 178.225 32,300 19, 951 11, 376 '56,182 11,008 1939—March 97,687 '82, 722 37, 558 2,202 2,346 767 14,424 14,498 2,542 752 1,198 '4,497 938 April 94,600 '79, 794 35, 613 2,252 2,349 729 15,320 14,238 1,733 513 830 '4,305 912 May 98,545 '83,481 37,970 2,355 2,323 779 15,227 15,133 1,794 614 '4,654 936 June „_ 99, 511 '83, 606 37,065 2,369 2,277 756 14,520 15,287 3,216 551 '4,688 910 July 102,822 '87,155 37,952 2,395 2,395 739 16,159 15,402 3,638 551 1,583 '4,404 936 August 107,257 '91,420 38,494 2,431 2,379 731 16,856 15, 722 6,519 735 777 '4,854 923 September.. 106,867 '89, 935 37,817 2,442 2,432 705 19,637 14, 752 2,302 803 1,012 '6,146 888 October 107,138 ••90,894 38, 459 2,452 2,479 715 21,693 15,144 1,832 677 1,111 '4,397 934 November. 103, 527 '87, 377 38,600 2,425 2,497 686 17,421 14,818 ;873 934 '4,886 903 December.. 101, 289 '84, 954 38, 534 2,330 2,589 709 15,845 15,151 1,209 ,367 1,044 '5,251 925 1940—January... 104, 651 88, 793 39,777 2,384 2,662 739 16,972 14,853 3,078 ,958 993 4,486 891 February.. P97, 605 P81, 362 38, 575 v2, 345 C2, 663 728 13,317 14,188 1,901 ,633 735 4,411 March PIOS, 214 J>87,178 40,162 P% 345 *2, 695 732 16, 217 15, 014 H, 901 1,717 P735 4,791 April P103, 877 P87, 560 40,879 *2,345 P2, 730 *>732 16,408 *14, 525 n, 901 1717 Pi, 720 Gold production in V. S. 8. E.: 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. p Preliminary. c Corrected. r Revised. ^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. 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 1939, p. 106; and 1936, pp. 108-109. 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 t o h r 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 el m - N la e e n r t d - h s - S d w e e n - 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 tr u a s l - ia A So fr u ic th a Japan B I r n i d ti i s a h c o t o r A th i u e l e n l s r - 1934 i 1,131,994 499,870 260,223 8,902 94,348 12,402 30,270 16,944 12,038 1,029 12 76,820 32,304 1935- 1,739,019 315,727 934,243 3 227,185 968 95,171 13, 667 10,899 15,335 3,,498 65 75,268 46,989 1936 _ 1,116, 584 174,093 573,671 3,351 71,006 7,511 72,648 39,966 11,911 21, 513 2233,,2:80 8 77,892 39, 735 1937 1,585, 503 891, 531-13,710 90,859 6,461 54,452 111,480 38,482 18,397 25; 427 34, 713 181 246,464 50,762 29,998 1938 _ 1,973, 5691, 208, 728 81,135 15,488 163,049 60,146 1,308 76,315 36,472 10,557 27,880 39,162 401 168, 740 16,159 » 67, 975 1939 3,574,1511,826,403 3, 798 165,122341, 618 28,715 86,987 612, 949 33,610 23,239 35, 636 74,250 22,862 165,605 50,956'102, 404 1939 Mar 365, 384 250,042 816 37,179 27,098 8,227 6,852 3,822 4,234 3,326 4,303 10 11,410 3,685 4,381 Apr _ 605, 797 384,925 21 84,603 44, 564 55, 680 7,665 1,649 2,114 2,179 4,844 100 5,528 4,944 ^6,972 May 429,404 302, 667 3 41,651 40, 449 2,284 12.066 2,050 2,117 2,594 5,295 41 10,931 3,390 3,866 June 240,430 128,196 2 55,081 5,644 17,191 3,280 2,107 3,843 5,677 50 14,093 2,244 3,023 July 278, 636 177,805 1 45, 554 10 5,628 15,196 4,150 2,123 3,022 5,034 50 10,938 2,760 Aug 259,921 163, 738 2 22,640 34,299 3,956 2,120 2,775 5,689 52 10, 931 9,259 4,460 Sept 326,074 162,450 1 1,482 120,837 653 2,102 3,947 5,474 11 16,425 4,065 6 8, 541 Oct 69, 726 10,182 2,990 9,940 1,794 3,188 8,420 2,142 12,497 2,703 8 15,870 Nov 167,980 18, 556 28 8,781 5.,113 2,990 65.067 3,445 2,117 2,64312, 505 10,449 9,487 10,138 16,662 Dec 451,172 10,417 31, 526 1\9 ,743 5,119 308, 773 3,972 2,116 2,646 6,472 9,885 20,101 7,592 7 22,812 1940 Jan 236,391 23,906 30,41516,601 1,208 52, 716 2,550 3 3,360 6,155 20,297 37, 680 9,743 31,698 Feb 201,422 21, 321 974 16,181 3322;, 444488 13, 931 46,866 2,006 3 1,896 4,241 18,872 4,919 6,722 31,001 Mar 459,827 35,268 .... - 282 6655,,999911 28,907 249,858 2,215 2,116 4,137 7,409 24,503 5,797 11,81310 21,493 Apr 249,851 43, 567 3,227733 39,654 32, 617 54, 967 2,396 2,111 3,376 3,374 4,710 3,139 " 27,866 May 435,132 62,042 40 9,431 11,452 281,182 2,331 2,113 2,405 5,177 31,477 4,743 4,31712 18,423 1 Differs from official customhouse figures in which imports and exports for January 1934 are valued at approximately $20.67 a fine ounce. 2 Includes $31,830,000 from Argentina. 3 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. s Includes $5,157,000 from Hong Kong. • Includes $6,363,000 from Italy; $4,087,000 from Hong Kong. 7 Includes $6,414,000 from Norway; $5,586,000 from Italy. s Includes $19,527,000 from Norway; $5,452,000 from Hong Kong. 9 Includes $13,878,000 from Norway; $5,570,000 from U. S. S. R.; $5,566,000 from Italy. 10 Includes $11,760,000 from Italy. 11 Includes $16,108,000 from Italy; $5,984,000 from Hungary. 12 Includes $8,248,000 from Italy. NOTE.—For gross import and export figures and for additional countries see table on p. 692. JULY 1940 725 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: Y m e o a n r t o h r n T p et o o r t i a t m s l - A S f o r u ic th a, 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 - * 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 e e n - 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 1935 __ 369,722 -435, 502 142,137 -4,726 -17,476 10, 796 931 37,981 404, 295181,602 32, 754-50,661 14,126 1936. „ 1,169,931 -276,830 756,215 23,292—15,133 -21,215 26, 723488,814 128,421 28,067 -10,129 37,708 1937 __ 420,427 -834,009 541,187 46,147-21,993 -16, 572 199,965 24,165 464,837 66,330 22,079 -81 8-55,032 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 4,922 1938—June- 89, 580 -20,811 -6,137 57 56, 764-12,037 28,104 2,024 40,623 3,725 9,929 -7,673 -5,407 421 July- 24,119 -10,529 -997 47 23, 212-5,750 2,490 31, 516 6,418 6,581 -11,429 -16, 521 -920 Aug.- -73,132 -93, 660 -5,726 6,164 -258 -10,041 5,665 2,102 31,192 10, 356 3,035 -11,151 -10,498 -312 Sept., -261,143 -360,016 685 14,358 120,075 -7,498 8 2,839 16,831 3,023 -4,750 -22,763 -21,980 — 1,955 Oct.— -210,171 -308, 528 69,604 4,077 33,982 535 705 6,530 4,204 -20,792 -4,671 2,831 1,353 Nov.. -96, 508 -105,220 -66 6,005 -2,328 -5, 245 155 2,695 4,260 618 1,017 1,603 Dec... -66,726 -97, 371 758 2,057 9,990 5,649 528 7,358 1,815 531 1,511 1,347 1939—Jan.... -36, 514 -50,814 -3 -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 -1,101 399 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 4,8054-47,875 -437 73,394 -425 May.. -294,077 -287,762 -262 4,018 2,008 49,004 5,631 143 45, 394 2,9754-145,856 -3,793 32,921 1,504 June.. -51, 591 -127,293 -412 -38 415 22,968 52,636 911 -2 153 -3,318 July__ -147, 332 -182,145 -330 -1 196 8,856 38,423 3,078 697 -1,138 —575 -14,393 AugA -318, 511 -223,370 2,691 1 -7,491 -11,275 "~55 49,120 4,606«-114,284 -4,966 -4,618 -8,980 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 r p ( t o ) o r n i r t m e t s s t ^ - i e m o x ( r n p p ) e o n o t e r r t t t s s United U K d n i o i n m t g ed - France g B iu e m l- Italy N la e e n r t d - h s - m G a e n r y - 1 c o t o A r th i u l e e l n s r - i e m o x r n p p e o n o t r e r t t t s s p t I i G r n o o o d n d l i u d i a n c- s d e I r I r i n e n v a - - n es ea f e o r g d m r I o e n l i a f d g o 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 -46,065 -45,955 -29,235 18,397 19,431 2,580 -43 1,543-230,720 11,223 173 -219,670 1935.. 42,969 -230,788 -54,858 -181,725 -13,940 25, 542 342 -9,607 • 2,812-161,872 11,468 -150,398 -1,868 122,278 -1,714 39,305 14, 531 51,299 4,600 -2,990 -121,066 11,663 -109,403 1937.. -3,718 -56,946 11,940 -45,061 27, 739 -657 6,553 -16,461 10,609 -61,723 11,607 -41 -50,075 1938.. -35,224 -1,245 76,620 -74, 375 -1,067 11,314 25,125 -32,745 -4,989 -54, 696 11, 284 12,078 -55,490 -220,229 -105,104 -13,431 2 <— 31,466-18,039 -25,191 1,546 -79,495 11,009 50,913-119,396 1938—July. 1,468 16,128 -14,071 -6,041 -142 3,962 222 -10,988 954 -10,034 Aug. 10,464 -8,382 -1,283 -37 3,824 -6, 267 342 -7,082 961 -6,121 Sept. -36,626 15,940 418 117 -2 924 1,! -10,251 -957 949 -8 Oct._ -16,134 907 -616 -158 -38 2,551 3 -7,661 959 1,909 -8,611 Nov.. -10,129 13 33 -117 -4 994 -265 31 -2, 279 933 -7,036 Dec.. -3, 765 -1,854 -139 -166 -2,884 -438 -209 211 4,479 -3, 270 1939—Jan.. 33 -3, 786 549 -149 1 -2,294 -1,274 -7 -125 940 11,423 -10,608 Feb. -11,940 -2,112 -21 -763 24 -213 556 -1, 581 -97 -15 863 7,749 -10,174 Mar.. 9,999 -37, 332 -10,786 1,547 -1,990 -1,509 -576 -8,327 -14,830 -860 —5,113 938 4,812 -8,984 9,967-162,645 -54,266-104,650 -4,805 -864 10,819 -3,876 -2,431 -2,573 -3,394 912 5,197 -7, 679 MayI -5,807 8,059 -2,329 -5,419 -1,609 -73 19, 585 -718 -1,138 -239 -4,202 937 1,839 -5,104 June- -284 -10,696 93 269 6 -8 725 -3,116 -76 -2,049 910 5,749 July.. 7,765 -2, 856 1, -1,153 2 10,800 355 -171 -244 -10,264 936 942 -10,270 Aug.— 5,275 2 4,334 -1,929 —91 2,815 1,234 -887 -204 -5, 274 923 2,512 Sept.. -2, 730 -1,506 -1,030 -1 -25 89 -243 -11 -5, 213 888 6,096 -10,421 Oct..,. -2,855 -888 44 -541 -4, 583 -1,463 1,617 2,965 -12,365 934 4,563 -15,994 Nov.. -15,187 -3,880 85 -90' -9 -6, 255 -1,473 -2, 743 -7, 691 903 31 -6,819 Dec... -3, 989 -3, 473 304 -1,338 -44 -1,662 -709 121 2,812 -20, 517 925 -19,592 1940—Jan -25, 082 891 P-24, 191 p Preliminary. 1 Beginning April 1938 figures refer to Greater Germany. 2 Includes $17,465,000 exported to Rumania and unspecified net imports of $95,937,000. > Includes $67,655,000 exported to Central and South America, excluding British countries. * Figures for April and May include exports to Canada of $45,972,000 and $144,910,000 respectively. B 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, w Includes net import of $26,555,000 from Czecho-Slovakia. u 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. 726 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 funds in U. S. 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 n s d g o R f f u e U n tu d . r s n S. 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 inN. Y. 1935—Dec. 31 1,412.5 603.3 593.5 361.4 125.2 316.7 6.0 1936—Dec. 30 2,608.4 930.5 81.1 849.4 431.5 316.2 917.4 12.9 1937—Dec. 29 3,410.3 1.168.5 243.9 924.6 449.1 583.2 1,162.0 47.5 1938—Sept. 28 3,452.9 1,161.2 168.0 993.2 477.2 625.0 1,125. 4 64.1 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-Mar. 1 3.986.0 1,544.9 265.1 1.279.7 548.5 641.3 1.192.6 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 1.766.8 680.2 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 4.940.3 464.7 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 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. 1 4,858.6 2,366.9 494.8 1,872.0 599.6 688.7 1,123. 7 79.8 Nov. 8 4,825.0 2,341. 6 490.3 1,851. 3 597.3 690.4 1,115.9 79.9 Nov. 15 4,862. 7 2,362.4 481.6 1.880.8 618.8 693.2 1,109. 2 79.2 Nov. 22 4.822.9 2,329. 3 433.9 1,895. 3 615.3 694.3 1,107.1 76.9 Nov. 29 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 1.936.1 699.0 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 Mar. 6 4,905.8 2, 323. 7 395.3 1,928. 4 638.5 752.4 1,103.4 87.8 Mar. 13 4, 928.1 2, 348.0 404.3 1,943. 8 633.5 755.2 1,102. 2 89.2 Mar. 20 4,972. 7 2, 386. 6 423.8 1, 962. 8 638.7 757.2 1.100. 6 89.4 Mar. 27 4,988.8 2,409. 6 431.2 1,978. 4 636.9 758.1 1,097. 8 86.5 Apr. 3 5,002.1 2,426.0 426.1 1, 999. 9 631.6 761.6 1,094. 8 88.1 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. JULY 1940 727 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 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 it - 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 1 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—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. 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 Mar. 6__ 4,905. 8 988.8 464.8 469.5 825.8 166.2 61.5 833.6 3, 810.1 212.9 512.5 298.0 72.3 Mar. 13. 4.928.1 978.5 466.1 467.8 847.2 167.4 65.4 826.9 3, 819. 4 213.3 514.9 311.7 68.8 Mar. 20. 4, 972. 7 968.3 460.8 470.9 851.7 167.4 69.2 863.9 3,852. 3 213.4 523.2 313.7 70.0 Mar. 27. 4,988. 8 961.8 463.0 466.0 855.4 167.3 68.5 863.7 3,845. 6 231.0 527.1 315.2 69.9 Apr. 3.. 5,002.1 982.6 468.3 469.5 857.8 167.5 83.7 865.8 3,895.1 212.1 520.7 304.0 70.1 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 er n 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 n 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 9.6 6.9 109.4 791.7 76.3 166.3 126.2 8.0 1938—Dec. 28. 1,432. 7 366.7 158.8 84.4 203.7 -9.8 3.8 203.0 1,010.6 135.1 134.0 132.7 20.4 1939—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. 3 258. 5 186.3 381.8 -20.5 24.9 522.1 1,685.4 166.8 231.2 226.2 58.9 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 Mar. 6 . 2, 323. 7 285.0 252.8 186.8 393.8 -20.9 27.7 540.5 1,665. 7 154.2 236.9 221.4 45.4 Mar. 13. 2,348. 0 283.4 254.3 184.0 413.1 -20.6 31.4 534.4 1,680.0 158.0 238.0 229.5 42.5 Mar. 20. 2, 386. 6 273.9 249.4 187.0 414.0 -21.2 35.8 571.5 1,710.4 155.7 248.1 229.5 42.9 Mar. 27. 2,409. 6 271.2 252.9 184.6 418.0 -20.5 35.5 570.9 1, 712. 5 173.1 251.0 230.4 42.6 Apr. 3.. 2,426.0 289.1 258.6 185.7 418.5 -21.2 50.5 571.8 1, 753.1 150.0 244.5 236.3 42.2 TABLE 4.—UNITED STATES BANKING FUNDS ABROAD, BY COUNTRIES From th r J o a u n g . h 2 — , 1935, Total U K d n i o n i m t g ed - France N la e e n r t d - h s - S l w a e n r it - 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 2.6 140.3 13.9 33.0 453.0 30.6 66.8 -65.0 -7.2 1939—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 -.6 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 Mar. 6 638. 5 250.2 73.3 12.1 2.4 179.3 10.3 31.8 559.5 53.5 56.7 -30.2 -1.0 Mar. 13 633. 5 243.4 72.8 12.4 2.5 180.2 10.7 30.7 552.6 49.7 57.8 -25.0 -1.6 Mar. 20 638.7 246.0 72.3 12.1 3.0 181.1 10.3 30.0 554.8 52.7 55.8 -23.7 -.8 Mar. 27 636.9 245.1 72.9 9.8 1.7 180.3 10.0 30.4 550.2 53.6 56.5 -22.8 -.6 Apr. 3 631.6 252.4 73.8 11.9 1.9 181.1 10.3 31.2 562.6 54.1 55.3 -40.0 A 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. 728 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 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 it - 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. 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—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. 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 Mar. 6 752.4 129.5 42.6 30.7 47.9 36.4 27.9 192.1 507.1 2.8 186.3 44.5 11.7 Mar. 13 755.2 130.0 42.7 30.9 48.3 36.3 27.9 192.6 508.6 3.8 186.4 44.6 11.7 Mar. 20 757.2 130.5 42.7 31.2 48.7 36. 3 27.8 192.7 509.9 3.9 186.6 45.0 11.7 Mar. 27 758.1 130.7 42.7 31.4 ' 48.8 36.3 27.7 192.7 510.3 4.0 186.8 45.2 11.7 Apr. 3 761.6 130.9 42.6 31.3 49.0 36.3 27.6 192.9 510.8 6.4 187.5 45.3 11.8 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 Asia* ot A he ll r t 1935—Dec. 31 316.7 149.8 23.4 50.5 55.1 -5.4 -.1 12.9 286.2 2.8 3.7 21.4 2.6 1936—Dec. 30 917. 4 367.7 64.7 157.6 200.2 -7.5 -3.3 38.5 818.0 32.6 15.5 44.1 7.1 1937—Dec. 29 1,162 0 448 7 70 3 213.8 275.3 -17.4 —4 9 55.7 1,041.6 37.6 18.2 54 7 9.8 1938—Dec. 28 1,210.9 472.6 76.5 212.9 301.7 -22.7 -5.4 56.6 1,092.3 27.8 23.4 56.4 11.0 1939—Aug. 30 1,165. 7 433.5 72.2 220.6 313.4 -27.1 -5.7 56.7 1,063. 6 13.0 24.7 50.6 13.7 Sept. 27 1,164.4 408.4 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 1,130. 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 ___ 1,103. 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 1,098.5 328.2 76.3 227.1 342.8 -28.2 -4.9 60.1 1,001.4 -3.1 29.8 56.1 14.3 1940—jan> 31 1,098.1 315.7 77.1 229.4 349.2 -28.3 -4.7 62.4 1,000.8 —5.9 30.6 58.2 14.5 Feb. 28 1,102. 0 306.5 76.8 230.4 359.7 -28.4 -4.7 63.4 1,003. 8 —7.5 31.5 59.8 14.4 Mar. 6 1,103. 4 304.8 76.7 230.7 361.7 -28.4 -4.7 63.7 1,004. 5 -6.8 31.7 59.5 14.5 Mar. 13 1,102. 2 301.9 77.0 231.0 363.5 -28.4 -4.9 64.0 1,004. 2 -7.7 31.5 59.8 14.4 Mar. 20 1,100. 6 298.1 77.0 231.0 366.1 -28.6 -4.9 64.1 1,002. 8 -7.6 31.4 59.7 14.4 Mar. 27 1,097. 8 295.6 75.7 231.2 367.2 —28. 7 -4.9 64.2 1,000. 4 -8.0 31.6 59.5 14.4 Apr. 3 1,094. 8 291.2 75.9 231.5 368.1 -28.7 -4.9 64.5 997.5 -8.3 32.1 59.1 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 Asia* ot A he ll r 1 1935—Dec. 31 6.0 (3) 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 _ >j .3 .4 22.6 -7.6 -4.2 2.1 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 m 85.0 17.8 19.1 8.6 15.0 -.2 .2 7.4 68.0 11.9 1.9 3.0 1939—Aug. 30 83.1 24.2 18.4 9.4 15.3 -.1 .2 7.0 74.3 9.7 2.1 -3.6 .7 Sept. 27 78.5 20.7 19.0 9.0 16.1 -.1 .2 6.0 70.9 9.2 2.0 -5.2 1.5 Oct. 25 77.1 19.6 19.0 9.6 15.7 (3) .1 5.0 69.1 9.0 1.1 -4.0 1.8 Nov. 29 78.1 19.5 18.5 10.7 16.4 -.2 .1 5.2 70.2 8.9 1.1 -4.0 2.0 Dec. 27 1940—Jan. 31 8 8 7 6 . . 3 3 1 1 9 9 . . 1 1 1 19 9 . . 0 6 9 9 . . 2 4 1 1 9 8 . . 1 3 - -. . 2 2 . . 2 2 5 5. . 9 8 7 7 2 2. . 2 3 9 9. . 3 7 1 . . 9 7 2 1 . . 0 7 2 1 . . 0 9 Feb. 28 Mar. 6 87.8 19.3 19.2 9.3 20.0 -.2 .2 5.5 73.4 9.1 .8 2.7 1.8 Mar. 13 89.2 19.9 19.4 9.5 19.8 -.1 .2 5.3 74.0 9.5 1.3 2.7 1.8 Mar. 20 89.4 19.8 19.4 9.6 19.9 2 .2 5.6 74.3 8.8 1.3 3.1 1.8 Mar. 27 86.5 19.2 18.7 9.1 19.7 -.2 .2 5.5 72.2 8.3 1.3 2.9 1.8 Apr. 3 88.1 18.9 17.4 9.0 20.2 (4) .2 5.5 71.2 10.0 1.3 3.4 2.2 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". 1 For explanation see BULLETIN for May 1937, pp. 395-396. »Inflow less than $50,000. * Outflow less than $50,000. 729 JULY 1940 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 2,162.8 241.8 188.2 49.0 31.0 1930—Dec. 31. 2,335.0 214.5 799.4 122.2 222.2 161.0 111.2 281.3 1,911.7 216.8 130.8 38.2 37.5 1931—Dec. 30. 1,303. 5 104.9 549.2 44.6 66.0 41.1 33.2 122.2 961.2 148.3 103.3 69.0 21.6 1932—Dec. 28 745.6 169.7 71.1 11.9 78.0 32.9 39.8 66.2 469.6 98.2 121.7 43.5 12.6 1933—Dec. 27 392.0 48.9 27.0 8.0 11.5 17.5 11.7 31.1 155.7 86.1 96.7 42.7 10.9 1934—Nov. 28 466.7 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 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 A 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 70.9 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 Mar. 6- 2,949.9 357.1 285.0 200.7 407.4 8.7 46.5 587.4 1,892. 9 254.4 357.9 387.4 57.4 Mar. 13. 2,974. 2 355.6 286.4 198.0 426.8 9.1 50.2 581.3 1,907. 2 258.2 358.9 395.5 54.4 Mar. 20. 3,012. 8 346.0 281.5 201.0 427.7 8.5 54.6 618.4 1,937. 6 255.8 369.0 395.5 54.9 Mar. 27. 3,035. 8 343.4 285.0 198.5 431.6 9.1 54.3 617.8 1,939. 7 273.2 372.0 396.4 54.5 Apr. 3— 3,052. 3 361.3 290.7 199.7 432.2 8.4 69.3 618.7 1,980. 3 250.1 365.5 402.3 54.1 Additional Detail Available from January 3,1940 * 5 European countries 6 Latin American countries 4 Asiatic countries Pan- 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 en e- Total g t A i e n r n a - - B z r i a l - Chile Cuba M ic e o x- C a a m . 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. 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 Mar. 6. 450.6 175.8 27.8 25.4 69.8 151.8 266.3 66.1 31.6 24.4 40.1 65.9 38.3 326.4 177.9 68.5 49.5 30.5 Mar. 13 443.5 175.1 27.9 26.3 70.2 144.0 269.6 68.6 32.6 24.1 40.9 64.8 38.7 330.9 179.1 69.1 50.0 32.7 Mar. 20 483.5 177. 5 29.4 25.8 68.7 182.2 274.7 67.0 34.0 24.3 42.4 67.6 39.3 333.2 179.7 70.9 50.7 31.9 Mar. 27 482.1 179.2 29.9 25.2 68.4 179.4 279.0 68.1 34.9 23.4 44.3 68.8 39.4 332.9 177.6 75.4 47.1 32.8 Apr. 3._ 475.1 184.3 28.7 25.0 68.4 168.6 275.4 63.5 35.3 24.7 43.2 68.4 40.2 342.1 175.9 75.2 59.1 32.0 i Prior to January 3, 1940, the figures shown under Asia represent the Far East only, the remaining Asiatic countries being included under "All other". * Last report date on old basis. 8 First report date on new basis. * The figures in this supplementary table represent a partial analysis 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 comDarable throughout as a result of certain changes or corrections in the reporting practice9 ooff rreeppoorrttiinngg bbaannkkss wwhhiicchh occ curredJ on August^ "1 2, "19—36 , TJ anuary 5, "1"9*3"8 , and* ~O ctober 18, 1939 '( see ~B ULLETIN for May 19—37, p. 4"2"5 : A' pril 1939, p. 295; and1 A' pprriill 1T94'~0 , p. "3"6~2N). 730 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 o i 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 A L m a e t r i i n ca Asia » oth A e l r l i 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. 2 7— 898.8 192.5 66.9 18.4 12.3 260.9 16.7 83.2 651.0 j 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. 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 Mar. 6 520.5 42.0 5.4 6.6 5.7 51.8 16.9 48.0 176.3 42.8 109.2 182.8 9.5 Mar. 13 525.6 48.8 6.0 6.2 5.6 51.0 16.5 49.1 183.2 46.6 108.2 177.6 10.0 Mar. 20 520.4 46.1 6.4 6.6 5.1 50.1 16.9 49.8 181.0 43.6 110.2 176.3 9.3 Mar. 27 522.2 47.0 5.8 8.9 6.3 50.8 17.3 49.4 185.6 42.7 109.5 175.4 9.1 Apr. 3 527.5 39.7 4.9 6.7 6.2 50.1 16.9 48.6 173.2 42.2 110.7 192.6 8.9 Additional Detail Available from January 3,1940 * 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 l i a 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. 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 Mar. 6. 19.9 7.0 2.8 .9 3.9 5.3 69.0 11.7 31.2 9.8 9.7 5.7 .9 169.9 25.3 2.0 114.3 28.4 Mar. 13 19.9 7.8 2.6 .7 4.0 4.8 68.9 11.8 31.0 9.8 10.4 4.8 1.0 164.9 26.8 1.6 107.5 29.0 Mar. 20 20.5 8.0 2.3 .9 3.9 5.4 69.6 12.1 31.4 9.6 10.8 4.7 1.0 165.9 25.8 2.1 109.2 28.7 Mar. 27 19.7 8.1 2.2 .8 3.9 4.7 70.1 12.2 31.6 9.4 11.2 4.7 1.0 165.4 25.7 1.5 109.6 28.6 Apr. 3_. 19.4 7.9 2.2 .8 4.0 4.5 71.4 12.5 33.0 9.4 10.7 4.7 1.1 182. 6 26.1 1.7 125.9 28.9 i Prior to January 3, 1940, the figures shown under Asia represent the Far East only, the remaining Asiatic countries being included under "All other". 3 Last report date on old basis. * First report date on new basis. 4 The figures in this supplementary table represent a partial analysis 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 practice 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). JULY 1940 731 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CENTRAL BANKS Bank of England is A su s e se t d s e o p f t. Assets of banking department Liabilities of banking department Note (Figures in millions of Cash reserves Dis- circula- Deposits Other pounds sterling) Gold Other counts Securi- tion liabiliassets i and ad- ties ties Coin Notes vances Bankers' Public Other 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 .6 38.8 49.0 104.7 368.8 132.4 6.6 36.2 18.0 1931—Dec. 30 120.7 275.0 6 31.6 27.3 133.0 364.2 126.4 7,7 ^0. 3 18.0 1932—Dec. 28 119.8 275.0 .8 23.6 18.5 120.1 371.2 1024 8.9 33,8 18.0 1933—Dec. 27 190.7 260.0 10 58.7 16.8 101.4 392.0 101 22 2 m5 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 Ifl 1 39 ?, 18.0 1937—Dec. 29 326.4 220.0 .8 41.1 9.2 135.5 505.3 1206 11.4 36.6 18.0 1938—Dec. 28 ___ 326.4 230.0 .8 51.7 28.5 90.7 504.7 1010 15.9 36.8 18.0 1939—Mar. 29 2 226 2 300.0 1 44.2 4.8 124.8 482.0 985 21 8 36,3 18.2 April 26 226.2 300 0 .9 37.1 6.2 129.5 489.1 91.4 27.0 37.6 17.7 May 31 226.2 300.0 .6 26.4 8.0 140.7 499.8 82.4 38.3 37.1 17.8 June 28 226.4 300.0 7 27 4 6 8 136.7 499.0 101.4 15 4 37 0 17.9 July 26 3 246.4 300.0 .6 35.5 8.0 128.0 510.9 914 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. 27 580.0 .7 38.3 2.5 144.2 541.8 1071 19.8 40.5 18.3 Oct. 25 .2 580.0 .9 53.0 4.6 127.7 527.1 1168 12.6 39.2 17.7 Nov. 29 .2 580 0 1 51 6 4 5 132.1 528 7 1035 97 8 40 ? 17.8 Dec. 27 .2 580.0 L.O 25.6 4.3 176.1 554. 6 1173 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 L.O 49.0 2.8 149.4 531.2 994 45.7 38 9 18.1 Mar. 27 .2 580.0 1 37.1 6.1 157.2 543.1 980 43 1 4? ?, 18.2 Apr. 24 _ .2 580.0 L.O 43.1 4.9 153. 5 537. 1 1034 40.7 40.6 17.7 May 29 .2 580.0 L.4 23.4 2.9 171.6 556.9 949 36.1 50.5 17.8 Assets Liabilities Domestic bills Loans on- Deposits Bank of France Ad- For- vances Note Other (Figures in millions of francs) Gold5 eign to Short- Other circula- liabili ch e a x n - ge m O ar p k e e n t6 c S i p a e- l' Other G er o n v - - G t o e v r e m rn- s O ec th u e ri r - assets tion G m ov e e n r t n- Other ties ment 8 ment se- ties curities 1929—Dec. 27 41,668 25,942 5,612 8,624 2,521 5,603 68, 571 11,737 7,850 1,812 1930—Dec. 26 __ 53,578 26,179 5,304 8,429 2,901 6,609 76,436 12,624 11,698 2,241 1931—Dec. 30 68,863 21, 111 7,157 7,389 2,730 8,545 85,725 5,898 22,183 1,989 1932—Dec. 30 83,017 4,484 6,802 3,438 2,515 9,196 85,028 2,311 20,072 2,041 1033—Dec. 29 77,098 1,158 6,122 4,739 2,921 8,251 82,613 2,322 13, 414 1,940 1934— Dec. 28 _ 82,124 963 5,837 3,971 3,211 8,288 83, 412 3,718 15,359 1.907 1935—Dec. 27 66, 296 1,328 5,800 9,712 573 3,253 7,879 81, 150 2,862 8,716 2,113 1936—Dec. 30 60,359 1,460 5,640 1,379 8,465 17,698 715 3,583 8,344 89. 342 2,089 13, 655 2,557 1937—Dec. 30 58.933 911 5,580 652 10,066 31,909 675 3,781 7,277 93.837 3,461 19,326 3,160 1938— Dec 29 87,265 821 7,422 1,797 7,880 20,627 443 3,612 14,442 110.935 5,061 25, 595 2,718 1939—Mar. 30 87, 266 758 8,631 2,054 5,733 20,627 172 3,332 14, 558 119, 748 3,955 16, 702 2,726 April 27 9 92,266 756 8,609 2,165 6,012 20,577 127 3,362 14,452 124, 666 3,755 17,255 2,649 May 25 92, 266 754 8,164 2,276 4,774 20,577 78 3,401 14,264 121,391 4,573 17, 570 3,020 June 29 92,266 722 8,074 2,279 5,009 20,577 374 3,471 14,753 122, 611 5,188 16,909 2,816 July 27 92, 266 722 8,316 2,275 5,000 20,577 472 3,461 14,458 123,239 5,468 16,058 2,781 Aug. 31 9 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 8,298 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— 9 84, 614 111 12, 645 1,870 5,005 20, 550 320 3,376 15, 970 156, 032 1,154 14, 262 3,014 Apr. 25 84,615 112 12, 694 1,781 5,769 20,900 228 3,411 15, 666 156, 285 1,171 14,681 3,038 May 30*> 84, 616 102 (10) 1,889 14, 473 32, 600 2,320 3,716 (10) 170, 853 1,046 25, 782 (10) p Preliminary. 1 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. 2 Effective Mar. 1, 1939, gold valued at current prices instead of legal partiy and about £5,500,000 transferred from Exchange Account to Bank. On Jan. 6, 1939, £200,000,000 of gold (at legal parity) transferred from Bank to Exchange Account. 3 On July 12, 1939, £20,000,000 of gold transferred from Exchange Account to Bank of England. 4 On Sept. 6, 1939, £279,000,000 transferred from Bank of England to Exchange Account. s 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. e 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. 1 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). 8 Includes advances granted under authority of Conventions between Bank of France and Treasury of June 18, 1936, June 30, 1937, March 22, 1938, and April 14,1938, as modified by Convention of Nov. 12,1938; Convention of Sept. 29,1938, approved by decree of Sept. 1, 1939; and Convention of Feb. 29, 1940 (see BULLETIN for May 1940, pp. 406-407). 9 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. i° Figures not yet available. NOTE.—For further explanation of table see BULLETIN for July 1935, p. 463, and February 1931, pp. 81-83. 732 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Central Banks—Continued Assets Liabilities Reichsbank Reserves of gold and Bills (and Securities (Figu re re ic s h i s n m m ar il k l s io ) ns of re f T o s o e re r t v i a g l e n s exc G ha o n ld g * e i T c n h r c b e e l i u c a l k l s d s u s in ) r , y g Se lo c a u n ri s ty E a c s li o g n v i o e b r t l e e Other a O s t s h e e ts r ci N r ti 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—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 1940—jan 3i 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 May 31 77 12,569 31 142 363 2,135 12,594 1,470 1,253 i Not shown separately on Reichsbank statement after June 15, 1939. NOTE.—For explanation of above table see BULLETIN for July 1935, p. 463, and February 1931, pp. 81-83. Central bank 1940 1939 Central bank 1940 1939 [Figures as of last report [Figures as of last report date of month] May Apr. Mar. May date of month] May Apr. Mar. May National Bank of Albania (thou- National Bank of Belgium (millions sands of francs): (Feb.) of belgas): Gold 7,567 7,568 Gold and foreign exchange 4,472 3,648 Foreign assets 58, 666 21, 365 Discounts— 1,041 538 Loans and discounts 7,030 4,929 Loans 62 65 Other assets 8,241 9,576 Other assets ._ 506 471 Note circulation 27,150 19,093 Note circulation 5,770 4, 425 Other sight liabilities 39, 258 11, 524 Demand deposits—Treasury 1 20 Other liabilities , __ 15, 095 12, 821 Other 187 156 Central Bank of the Argentine Other liabilities 124 122 Republic (millions of pesos) : Central Bank of Bolivia (thousands Gold reported separately... 1,224 1, 224 of bolivianos): Other gold and foreign exchange. 179 80 Gold at home and abroad 95, 434 62, 392 Negotiable Government bonds 244 276 Foreign exchange 91, 925 68,145 Other assets _- 194 199 Loans and discounts 142, 956 32, 936 Note circulation 1,180 1,140 Securities—Government 429, 407 407, 291 Deposits—Member bank 477 391 Other 10, 292 4,429 Government 110 169 Other assets 59, 851 26, 565 Other 3 2 Note circulation 385, 436 297, 859 Foreign exchange sold forward 16 29 Deposits 352, 469 239, 668 Other liabilities 56 47 Other liabilities 91, 961 64, 233 Commonwealth Bank of Australia National Bank of Bulgaria (mil- (thousands of pounds): lions of leva): Issue department: Gold 2,006 2,006 2,006 Gold and English sterling 16, 082 16, 082 16,030 Net foreign exchange in reserve 4 4 Securities 45, 300 46, 795 40, 505 Foreign exchange 1,800 2,245 774 Banking department: Loans and discounts 1,110 888 1,023 Coin, bullion, and cash _ __ 3,151 2,704 1,564 Government debt 3,393 3,393 3,441 London balances 44, 886 39, 612 16, 702 Other assets 2,030 1,555 1,292 Loans and discounts 34, 835 35, 560 17, 285 Note circulation 4,526 3,917 2,931 Securities 38, 203 37, 558 53, 929 Deposits 3,421 3,871 3,427 Deposits __ 114, 294 107, 623 83, 852 Other liabilities 2,396 2,303 2,178 Note circulation 52, 525 54, 025 47, 530 Bank of Canada (thousands of Ca- Bank of Belgian Congo (millions of nadian dollars): Belgian francs): (Jan.) Gold* 225, 773 225, 772 205, 639 Gold - _ _ 171 166 Sterling and United States ex- Foreign (gold) exchange 5 change 12, 601 42, 695 60, 719 34,599 Loans and discounts 617 394 Canadian Gov't securities: Other assets 526 566 2 years or less 417, 421 101, 507 93, 361 114,032 Note circulation 421 381 Over 2 years 93,995 107, 574 104, 664 52, 714 Deposits 735 604 Other assets 23,074 12,054 9,512 4,674 Other liabilities 164 142 Note circulation __ 230, 373 221,192 221,163 166, 227 Deposits—Chartered banks 238,305 213, 912 202,324 205,352 Dominion Government 52, 719 32,165 48,025 24, 217 Other 7,532 8,295 10, 580 6,373 Other liabilities _ 18,163 14, 037 11, 935 9,489 1 On May 1, 1940, gold transferred to Foreign Exchange Control Board in return for short-term government securities, (see pp. 677-678). JULY 1940 733 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Central Banks—Continued Centra) bank 1940 1939 Central bank 1940 1939 [Figu d r a es te a o s f o m f l o a n st t h r ] eport May Apr. Mar. May [Figu d r a es te a o s f o m f l o a n st t h r ] eport May Apr. Mar. May Central Bank of Chile (millions of Central Reserve Bank of El Salvapesos): dor—Cont. Gold 146 145 Deposits 6,463 8 201 Discounts for member banks 101 62 Other liabilities 3,876 3,657 Loans to government 750 758 Bank of Estonia (thousands of Other loans and discounts 363 261 krooni): Other assets 52 54 Gold — 40,901 40,901 40, 889 Note circulation 1,009 864 Foreign exchange (net) 4,278 4,356 15, 691 Deposits- Loans and discounts _ 48, 252 50,383 28, 625 Bank 148 114 Other assets 30,818 32, 313 34,853 Other 90 146 Note circulation 64 690 64 703 52 747 Other liabilities 164 156 Demand deposits 29,204 33, 771 38, 826 Bank of the Republic of Colombia Other liabilities 30,356 29,480 28, 485 (thousands of pesos): Bank of Finland (millions of mark- (Oct. Gold ----- 39, 699 40,186 40,192 35, 548 kaa): 1939) Foreign exchange 3,912 3,306 4,569 6,689 Gold 1,180 1,128 Loans and discounts __ 21,864 21,128 18, 615 18, 513 Foreign assets 2,085 2,517 Government loans and securities 38, 606 38, 538 37, 908 37,033 Loans and discounts . 2,059 1,293 Other assets _ 29, 781 29, 869 32,928 29, 861 Domestic securities 328 327 Note circulation 53, 785 53, 485 52, 576 54, 336 Other assets 343 135 Deposits 53,679 52, 973 50,945 38, 780 Note circulation 3,378 2,226 Other liabilities 26,398 26 570 30 691 34, 529 D eposits—Treasury 68 National Bank of Czecho-Slovakia 1 Other 553 959 (millions of koruny): Other liabilities 2,064 2,147 Gold 1,596 1,602 1,854 Bank of Greece (millions of drach- Foreign exchange 739 736 812 mas): Discounts 362 358 2,140 Gold and foreign exchange (net) 4,225 3,830 3,711 Loans 535 584 901 Loans and discounts 13, 366 13, 111 10,141 Other assets 7 480 7 274 3 519 Government obligations 4,105 4,159 4,256 Note circulation 5,522 5,568 6,291 Other assets 2,465 2,083 1,970 Demand deposits 1,335 1,359 664 Note circulation 9,861 9,010 8,195 Other liabilities 3,856 3,627 2,271 Deposits.._ C12, 480 12,194 10, 202 National Bank of Denmark (mil- Other liabilities 1,820 1,980 1, 681 lions of kroner): National Bank of Hungary (mil- Gold 117 117 118 lions of pengo): Foreign exchange 9 7 93 Gold 124 124 124 Discounts __ _ 38 30 20 Foreign exchange reserve 63 67 95 Loans—To Government agencies 107 98 69 Discounts _ _ 539 565 459 Other _ 422 324 147 Loans—To Treasury 343 313 299 Securities 188 191 187 Other 18 16 12 Other assets 118 98 103 Other assets 327 308 357 Note circulation 707 609 435 Note circulation _ 976 961 868 Deposits 154 121 108 Demand deposits 120 113 192 Other liabilities.— 138 135 194 Certificates of indebtedness 94 94 99 Central Bank of Ecuador (thou- Other liabilities 225 226 187 sands of sucres): (Feb.) Reserve Bank of India (millions of Gold 36 024 37 600 rupees) * Foreign exchange (net).. 1,284 7,035 Issue department: Loans and discounts 60 874 51 333 Gold at home and abroad 444 444 Other assets 19,979 16, 772 Sterling securities 1,135 595 Note circulation 63, 507 63, 784 Indian Gov't securities 384 373 Demand deposits 32 295 34 845 Rupee coin 559 662 Other liabilities 22, 360 14, 111 Note circulation 2,386 1,878 National Bank of Egypt 2 (thou- Banking department: sands of pounds): (Feb.) Notes of issue department 137 196 Gold 6,544 6,545 Balances abroad 285 101 Foreign exchange 2,602 1,759 Treasury bills discounted 12 2 Loans and discounts 9,916 5,961 Loans to Government 6 British, Egyptian, and other Investments 78 69 Government securities... 29. 568 25,471 Other assets 13 11 Other assets 6,337 7,667 Deposits 408 276 Note circulation 24,627 21,139 Other liabilities 116 110 Deposits—Government.. _ . 3,393 2,883 Bank of Japan (millions of yen): Other 17, 791 15,153 Gold . 501 501 501 Other liabilities 9,157 8,229 Special foreign exchange fund 300 300 300 Central Reserve Bank of El Salva- Discounts 527 544 401 dor (thousands of colones): Loans—Government 3 3 3 Gold 13, 228 13, 207 Other 118 220 45 Foreign exchange 5,804 6 872 Government bonds 2 726 2,482 1,668 Loans and discounts 1,546 567 Other assets 437 442 334 Government debt and securities _ 4,858 5,154 Note circulation 3,405 3,311 2,137 Other assets 1 171 961 D eposits—Government 699 711 610 Note circulation. _„ 16, 268 14, 903 Other 115 149 205 Other liabilities .. 392 320 300 c Corrected. 1 Name changed to National Bank of Bohemia and Moravia, Prague, by decree of March 31, 1939. * Items for issue and banking departments consolidated. 734 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] May Apr. Mar. May date of month] May Apr. Mar. May Bank of Java (millions of guilders): Bank of Portugal—Cont. Gold 147 133 117 Note circulation 2,358 2,104 Foreign bills _ __ 20 22 11 Other sight liabilities 1,121 1 195 Loans and discounts™ _ 70 65 66 Other liabilities 1,026 986 Other assets 119 117 102 National Bank of Rumania (mil- Note circulation 206 199 192 lions of lei): Deposits . 123 109 78 Gold.. _ 21,029 20, 964 18, 662 Other liabilities 27 29 26 Special exchange accounts 6,903 6,641 4,174 Bank of Latvia (millions of lats): Loans and discounts 22, 520 22, 553 14,128 Gold 72 71 71 93 Special loans * 1,024 1,057 1,577 Foreign exchange reserve _. 30 27 28 40 Government debt 10,036 10,026 10,247 Loans and discounts 212 220 211 154 Other assets 15,785 15,131 12, 786 Other assets 46 46 45 51 Note circulation 49,844 49, 848 38,948 Note circulation - 104 107 110 88 Demand deposits 10,004 9,508 10,614 Deposits 202 194 186 211 Other liabilities _ 17, 445 17, 015 12,013 Other liabilities 55 64 60 38 South African Reserve Bank (thou- Bank of Lithuania (millions of litu): sands of pounds): Gold... 57 53 62 Gold 33, 822 32, 980 26,428 Foreign exchange 15 12 6 Foreign bills 8,200 8,205 8,030 Loans and discounts 168 163 128 Other bills and loans 214 347 16 Other assets. ._ -. 62 63 36 Other assets 22, 575 22, 596 14,621 Note circulation 171 168 168 Note circulation . 18, 922 20, 319 17, 694 Deposits __ . 93 88 35 Deposits 41, 874 38, 811 28, 283 Other liabilities ___ 37 36 29 Other liabilities 4,015 4,998 3,118 Netherlands Bank (millions of guil- Bank of Sweden (millions of ders) : kronor): Gold 1,160 1,014 1,209 Gold 416 395 382 759 Silver (including subsidiary coin) 12 10 17 Foreign assets (net) 432 453 505 593 Foreign bills 1 1 3 Domestic loans and investments. 969 881 738 220 Discounts. 10 9 12 Other assets 851 821 577 504 Loans ._ 226 271 212 Note circulation _ 1,467 1,537 1,342 1,012 Other assets 71 80 71 Demand deposits 179 375 223 »-906 Note circulation 1,166 1,100 1,046 Other liabilities 1,021 638 637 157 Deposits—Government 25 8 30 Swiss National Bank (millions of Other 228 225 397 francs): Other liabilities 59 52 50 Gold 2,124 2,145 2,471 Reserve Bank of New Zealand Foreign exchange 259 310 266 (thousands of pounds): Discounts 270 156 65 Gold 2,802 2,802 2,802 Loans _ 82 79 33 Sterling exchange reserve 13, 848 13,034 4,564 Other assets 657 662 682 Advances to State or State un- Note circulation 2,031 2,013 1,737 dertakings 22, 778 22,105 19, 517 Other sight liabilities 720 697 1,137 Investments 2,958 3,146 3,771 Other liabilities 642 642 643 Other assets 377 455 364 Central Bank of the Republic of Note circulation 17, 945 18, 379 15, 572 Turkey (thousands of pounds): Demand deposits 22, 351 20, 785 13, 562 Gold . 109,497 110,458 36, 884 Other liabilities 2,467 2,378 1,884 Foreign Exchange—Free 36 12 1 Bank of Norway (millions of In clearing accounts 28,499 29,983 11,199 kroner): (Feb.) Loans and discounts 259,399 252, 465 131, 223 Gold 186 236 Securities 196 153 199,032 192, 792 Foreign assets 99 164 Other assets 41, 919 29, 600 32,884 Total domestic credits and Note circulation 316,869 312, 542 229,697 securities 440 270 Deposits 178,406 165,426 52, 305 Discounts 0) 111 Other liabilities 140, 228 143, 582 122, 981 Loans 0) 38 Bank of the Republic of Uruguay Securities (1) . 121 (thousands of pesos) * Other assets 0) 55 Issue department: (Jan.) Note circulation 579 458 Gold and silver 86,235 86, 235 Demand deposits—Government- 12 76 Note circulation 93,997 89, 670 Other 94 111 Banking department: Other liabilities.._. (i) 81 Gold 21,454 20, 285 Central Reserve Bank of Peru Notes and coin 46,021 50, 553 (thousands of soles): (Feb.) Loans and discounts 111,972 103, 626 Gold and foreign exchange 50,289 45,059 Other assets 119, 737 96,911 Discounts 18,126 28, 874 Deposits 93,229 85,442 Government loans . __ _ 105, 689 92, 926 Other liabilities 205,955 185, 933 Other assets 4,552 3,208 National Bank of the Kingdom of Note circulation 123,687 109,050 Yugoslavia (millions of dinars): Deposits 38, 953 46, 801 Gold 2,069 2,046 1,918 Other liabilities " 16,017 14, 216 Foreign exchange 870 873 525 Bank of Portugal (millions of Loans and discounts 1,802 1,815 1,835 escudos): Government debt 3,073 3,073 2,230 Gold 921 920 National defense bills 2,261 1,916 Other reserves (net) 566 498 Other assets 3,402 3,473 3,160 Non-reserve exchange 274 178 Note circulation 10, 764 10,400 7,298 Loans and discounts ._ 435 433 Other sight liabilities 1,777 1,874 1,624 Government debt 1,033 1,036 Other liabilities 935 922 747 Other assets 1,276 1,221 *• Revised. 1 Figures not yet available. 2 Agricultural and urban loans in process of liquidation. JULY 1940 735 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BANK FOR INTERNATIONAL SETTLEMENTS [Tn thousands of Swiss gold francs i] 1940 1939 1940 1939 Assets Liabilities May 31 Apr. 30 May 31 May 31 Apr. 30 May 31 Gold in bars 28, 215 64, 732 Demand deposits (gold) 12, 588 13, 205 Cash on hand and on current account with banks ___ __ 33, 465 6,756 Short-term deposits (various curren- Sight funds at interest „ 16, 852 16, 275 cies): Central banks for own account 21, 863 109, 214 Rediscountable bills and acceptances Other..__ __ 2,925 5,418 (at cost) _ 162, 415 219,950 21, 963 34, 464 Long-term deposits: Special accounts 229, 644 255,128 T8uimnde rfyu nbdilsl sa at nidn teinrevsetstments 195,075 232, 208 Other liabilities 193, 398 193, 415 Other assets 2,434 1,995 Total liabilities 460, 419 576, 379 Total assets 460,419 576, 379 » See BULLETIN for December 1936, p. 1025. MONEY RATES IN FOREIGN COUNTRIES [Per cent per annum] United Kingdom (London) Germany (Berlin) Netherlands (Amsterdam) Month ac 3 B c a m e n p o k t n a e n t r h s c ' s es T m b r i e o l a l n s s t , u h 3 r s y Da m y o -t n o e - y day o a B n l l a d o n e w k p a e o n r s c s i e ' ts d P is r r i c 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 l ay d P is r r i c a v o te a u t n e t M 1 o m ne o y n t f h or 1929—May 5.21 5.21 4.67 7.49 9.65 9.32 5.37 5.88 1930—May 2.16 2.11 1.93 3.89 5.00 3.62 2.29 2.53 1931—May 2.24 2.21 1.87 4.65 5.83 5.38 1.39 1.55 1932—May 1.44 1.10 1.29 4.87 5.96 5.91 .60 1.03 1933—May .50 .37 .58 3.87 5.50 5.24 2.11 1.69 1934—May .91 .85 .85 3.87 5.13 4.72 1.33 1.22 1935—May .59 .51 .75 3.09 3.10 3.17 3.78 2.96 1936—May - .55 .54 .75 2.92 2.89 2.76 2.15 1.82 1937—May .55 .51 .75 2.88 2.63 2.69 .17 1.00 1938—May .53 .51 .75 2.88 2.88 2.66 .13 .50 1939—May .73 .70 .75 V2 2.77 2.53 2.46 .72 1939—September 3.51 3.23 2.72 1-2 2.75 2.51 2.94 3.66 October. _. 1.77 1.71 2.75 () 2.23 1.90 2.24 November. 1.18 1.00 2.65 2.19 1.75 2.41 December. .23 1.24 1.03 y* 2.63 2.39 2.25 2.75 (2) 1940—January. _. .10 1.09 1.02 H 2.50 8(2) 2.03 1.85 2.64 February.. .04 1.02 1.00 2.50 2.08 1.58 2.50 March .03 1.02 99 2.50 2.16 1.35 2.49 April .03 1.03 1.00 XA ( 2 ) 1.68 2.75 May 1.03 1.02 1.00 V2 Sw la it n z d er- ( B B e ru lg s i s u e m ls) F (P r a a r n i c s) e (M It i a l l a y n) Hungary S ( h S w o t e o lm d ck e ) n - Japan (Tokyo) Month d P is r r i c a v o t a e u t n e t d P is r r i c a v o t a e u t n e t d P is r r i c a v o t a e u t n e t d P i r s r i c a v o te a u t n e t c c ia o P l m r i p m m a e e p r e - r Da m y o -t n o e - y day L m oa o to n n s t 3 h u s p Dis b co il u ls nted ov m e C o rn a n l i e l g y ht 1929—April 3.45 3.97 3.44 6.75 5.48-5. 66 3.65 1930—April 2.61 3.33 2.57 6.43 5.48 3.65 1931—April 1.06 2.25 1.47 5.48 ;-7 5. 29-5.48 2.92 1932—April 1.50 3.26 1.66 6.00 r9 6. 20-6. 57 5.48 1933—April 1.50 2.50 1.87 4.00 \-7lA 5. 48-5. 84 2.37 1934—April 1.50 2.14 2.70 3.00 5.29 2.46 1935—April 1.80 2.38 2.14 3.50 5.11 2.54 1936—April 2.25 1.38 5.03 5.00 4-63/6 4.97 3.11 1937—April 1.00 1.00 4.00 4.50 4.75 2.86 1938—April 1.00 1.50 3.25 5.00 4.56 2.45 1939—April 1.00 4.28 1.88 5.00 4.47 2.47 1939—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 April 1.25 2.00 c Corrected. i Beginning February 1940 figures are those published in the League of Nations Monthly Bulletin of Statistics. » No figures available since August 1939. 8 No figures available since July 1939. 4 No figures available since June 1939. NOTE.—For explanation of table see BULLETIN for December 1939, p. 1144; September 1938, p. 757; May 1930, p. 318; November 1929, p. 736; July 1929, p. 503; April 1927, p. 289; and November 1926, pp. 794-796. 736 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] Central bank of— Central Rate Date Central Rate Date Date effective U K d n i o i n m t g ed - France m G a e n r y - g B iu e m l- N la e e n r t d - h s - S l w a er n i - t d z- Japan bank of- Ju 3 n 0 e effective bank of— Ju 3 n 0 e effective J J I S n u u e 1 l l p y y e 9 t f 3 . f 7 1 6 e 9 0 c t June 30, _ 2 4 3 4 2 3H 2 2H 3.29 A A B B B e o r r lb i g l l t g i a e i v i n s u n i h i a m t a l i n n d a i . a . 3 3 2 6 5 K H # J A N M M a u o n a a g v . r r . . . . 2 2 2 9 5 8 1 1 , . , , , 1 1 1 1 1 9 9 9 9 9 4 4 3 3 3 0 0 5 6 8 J J L L M a a i a v p e t t h x a a v u i n i c a a o nia 3 3 5 6 3.29 J J A F M a u e p n a l b y r . r . . . 1 1 1 4 7 1 7 5 , , , , , 1 1 1 1 1 9 9 9 9 9 3 3 4 3 3 7 7 0 6 9 Sept 25 5 Oct. 2 3 Oct 9 Bulgaria 6 Aug. 15, 1935 Netherlands 3 Aug. 29, 1939 Oct 16 Canada 2H Mar. 11,1935 New Zea- N O o ct v . 2 2 0 6 2H IH C Ch o i l l o e mbia- „ 3- 4 4^ J D u e l c y . 1 16 8 , , 1 1 9 9 3 3 3 6 No la r n w d a y . 3 3 S M e a p y t. 1 6 3 , , 1 1 9 9 3 4 9 0 J J D u a e n n c e . 2 1 3 8 5 , 1937 4 6 2 Cz s e l c o h v o a - kia.. 3 Jan. 1, 1936 P P e o r r u tugal 4 6 -4H A M u a g y . 2 1 0 1, , 1 1 9 9 3 3 7 2 July 7 5 Aug. 4_. 4 M M S N M e o a a a p v y y y t . 1 3 1 1 3 3 0 0 3 , 1938 m 4 3 E D E E Fi c l s e n t u n S o l a a m n a d n l i o v a a d r a rk d . o _ r _ f 4 3 H i D M M M O e c a a a c t y y r . . . 2 2 3 2 6 3 0 1 , , , , , 1 1 1 1 1 9 9 9 9 9 3 4 3 3 3 4 0 8 9 5 S S R S S w w p o u a u m e i i t t d n z h a e e n n r A i l a a fr n i d ca 4 3 0 3 1 ^ H / iM N M M M o a a a a v r y y y . . 1 2 2 1 7 5 6 5 9 , , , , , 1 1 1 1 1 9 9 9 9 9 4 3 3 3 3 0 6 3 8 9 Sept 28 3 IH Oct 27 Nov 25 2* J A J A M u a u p n l a y g r y . . 4 6 1 2 1 , 7 4 1 1 939 _ 4 2 2 3 4 H H I G G F t r a u r e a e l n r y n e m g c c a e e a r n y y. __ 4 6 3 2 K J J A A M a a u p n n a g r . . y . . 1 2 4 4 9 8 9 , , , , , 1 1 1 1 1 9 9 9 9 9 3 3 3 3 4 6 7 9 5 0 T U U Y u . u n d r g i o S k t o m e . e s d S y l a K . v R i i n a . g . . . - . 2 4 4 5 J J O F u u e c l l b t y y . . 2 1 1 1 6 , , , , 1 1 1 1 9 9 9 9 3 3 3 3 5 9 8 6 Aug 29 3 4H Sept. 28. 3 Oct. 26 __„ 2 Jan 25, 1940 2 * Not officially confirmed. Apr 9 3K In effect June 30, Changes since May 29: none. 1940 __. 2 2 3^ 2 3 Hi 3.29 COMMERCIAL BANKS Assets Liabilities (Figures in U m ni il t l e io d n s K o i f n p g o d u o n m ds ! sterling) re C se a r s v h es M ca o s l h n l o e a r y n t d at B co il u ls n d te i d s- Securi- L cu o s a t n o s m to - Other Deposits li O ab t i h l e it r ies notice Total Demand* Time > 10 London clearing banks 1930—December. 208 144 322 285 933 240 1,876 992 847 254 1931—December. 184 119 246 297 905 222 1,737 868 846 237 1932—December. 207 127 408 472 778 208 1,983 991 963 216 1933—December. 213 119 311 565 740 237 1,941 1,015 900 244 1934—December. 216 151 255 594 750 247 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—Dec«mber__ 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 1,256 997 269 1939—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 C148 279 599 c990 c270 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 242 154 388 610 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 1,355 1,008 260 April _ 254 153 338 618 991 2fi0 2, 354 261 May 257 144 409 633 972 260 2,413 261 c Corrected. 1 Averages of weekly figures through August 1939; beginning September 1939 figures refer to one week near end of month. 2 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. JULY 1940 737 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 n n s d o f o f f r m an o c n s) th figures Cash D b u a e n f k ro s m B co il u ls n t d e 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 7,850 1,749 37,759 36,491 1,268 295 4,331 1933—December.. 5,870 1,416 19,848 8,309 1,827 32,635 31,773 862 273 4,362 1934—December.. 5,836 1,421 18,304 8,159 1,717 30,943 904 193 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 7,592 1,940 33,578 33,042 637 721 4,484 1939— J A M M u F p a n a e r y r e b i c l r h uary. __ 3 3 3 3 5 . , , , , 6 4 5 1 5 0 2 4 3 3 4 2 8 3 8 3 3 3 3 3, , , , , 8 5 7 8 7 5 1 6 2 4 7 9 9 4 5 2 2 2 2 25 3 3 5 5 , , , , , 9 0 6 1 2 4 2 6 0 6 5 4 7 2 3 6 6 6 6 7 , , , , , 0 6 4 9 5 6 1 5 2 3 1 4 4 7 8 1 1 1 1 1 , , , , , 2 3 4 4 3 1 5 7 0 5 0 0 2 9 3 3 3 3 3 3 6 4 4 6 8 , , , , , 2 7 3 1 2 4 9 6 2 3 3 3 8 0 1 3 3 3 3 3 3 7 5 5 4 . , , , , 1 4 7 5 6 2 4 0 4 1 7 4 0 7 9 6 6 6 6 6 2 6 6 8 7 4 7 7 4 6 5 5 5 4 5 4 3 8 5 1 1 8 6 8 9 3 3 3 3 3 , , , , , 6 6 8 9 7 9 7 4 7 5 7 7 9 5 1 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 32,668 626 455 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 » (5 i l n a r m ge il l b io an ns k s o . f r E ei n c d h s o m f a m rk o s n ) th figures re C se a r s v h es b f D a ro n u m k e s B co il u ls n t d e i d s- Loans Se t c ie u s ri- Other Total D D e e p m o a si n t d s Time o C b b f r t a r e a o n d i m n k i s t e s d l O ia t t i b h e i s e li r - 1930—November... 191 1,483 2,453 7,416 482 9,091 3,857 1,986 1,828 1931—November.... 173 817 1,431 5,377 807 1,127 6,062 3,252 2,810 1,328 2,341 1932—November... 143 583 1,631 4,570 938 991 6,161 2,958 3,203 1,146 1,550 1933—November... 131 471 1,702 3,731 860 1,003 5,754 2,624 3,130 661 1,481 1934—No vember... 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—No vember... 148 299 3,205 2,628 1,020 812 6,264 2,912 3,352 513 1,336 1938-August 199 255 2,731 1,098 844 6,933 3,219 3,714 416 1,368 September.-. 270 295 3,384 2,817 1,097 876 6,915 3,311 3,603 424 1,400 October 179 261 3,620 2,743 1,183 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 1939—January 184 285 3,934 2,708 1,178 895 7,334 3,619 3,716 414 1,436 February 175 307 3,888 2,798 1,145 902 7,377 3,576 3,801 410 1,427 March 219 308 3,904 2,833 1,112 901 7,458 3,693 3,765 401 1,418 April 189 271 4,364 2,761 1,082 891 7,745 3,870 3,875 398 1,414 May 237 292 4,537 2,772 1,073 852 7,981 3,996 3,985 396 1,385 June* 214 4.108 1,080 829 7.793 3.793 3.999 390 1,342 Liabilities Deposits payable in Canf ( i 1 g 0 u r c e h s a i r n t e m re il d l io b n C a s n a o n k f a s . C d a a E na n d d i a o n f d m o o ll n ar th s) re H se a r E s v h n e t s ire S ly l e o c i a u n n r s i C ty an a a O n l d o d a t a h d n e i s r s- S a a f n o l e f b o d r d r c r o e a u u o i m n e n r g a s i e d n t t y Se t c ie u s ri- Other ci N t r i c o o u t n l e a- a T d o a t a e l xclu d D d e e p i m n o g s a i n ts d inter T b i a m n e k l O ia t t i b h e i s e li r counts banks 1930—December 207 205 1,275 171 604 602 133 2,115 1,426 816 1931—December 201 135 1,253 146 694 510 129 2,058 1,360 762 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 1,920 663 1,357 726 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 1,384 607 103 2,303 755 1,548 790 1937—December 255 76 862 102 1,411 510 96 2,335 752 1,688 785 1938—December 263 65 940 166 1,463 474 88 2.500 840 1.660 782 1939—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 2,837 128 1,709 858 November 295 56 1,102 157 1,665 475 2,809 074 1,735 851 December 292 53 1,088 132 1,646 490 2,774 033 1,741 842 1940—January 290 48 1,073 134 1,654 466 2,755 005 1,751 827 February 273 57 1,104 140 1,638 476 2,772 113 1,659 829 March _ 265 52 1,115 166 1,599 451 2,724 063 1,661 836 April 281 54 1,072 180 1,592 2,743 071 1,672 840 i Combined monthly balance sheets not published for December. Prior to merger of two of the banks in February 1932 figures refer to six large Berlin banks. Beginning in 1935 figures are not entirely comparable with those shown for previous years due to changes in reporting practice (see BULLETIN for June 1935, p. 389). a No figures available since June 1939. NOTE.—For other back figures and explanation of tables see BULLETIN for August 1939, p. 699; June 1935, pp. 388-390; and October 1933, pp. 641-646. 738 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- Offi A c ( i p u a o l s t u r n a d l F i ) a ree ( g b B gi e ni ] e u l m - O B f r f a ic z i i a l l (mi F lr r e e i e s) B ( I r n r u i d p ti i e s a e h ) g ( B l a e u r v i i a - ) O C f a f n ic a ia d l a (d F ol r l e a e r) O C ffi h c i i l a e l (p E e x s p o o ) rt S ( C y h h h u a a i a i n n ) n g a - - C (p b o e l i s o a o m ) - ( C s k l o o ze r v u c a h n k o a i ) - a 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 36. 571 56.011 4.1642 1936_. 33.137 395.94 16.917 8. 5681 5.8788 37. 523 .2958 99.913 5.1240 29.751 57.083 4.0078 1937., 32.959 393. 94 16.876 8.6437 6.1983 37. 326 .2846 100.004 5.1697 4.0000 29.606 56. 726 3.4930 1938_. 32. 597 389. 55 16.894 5.8438 36. 592 .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 .. 2111 96.018 5.1727 4.0000 11.879 57.061 3.4252 1939—May. 31.210 372.89 17.016 6.0586 5. 3931 34.916 2101 99. 620 5.1733 4.0000 15.987 57.009 June. 31.217 373.12 17.008 6.0586 5.1737 34.924 2077 99. 773 5.1737 4.0000 13.434 57.169 July._ 31.211 373.03 16.991 6.0571 5.0555 34.905 2126 99.835 5.1703 4.0000 10.637 57. 036 Aug.. 31.116 367.32 16.968 6.0579 5.0236 34.407 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 Oet... 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 May.. 29. 773 322. 80 260.80 16. 736 5.0232 30.120 90. 909 80.970 5.1670 4.0000 5.083 57. 046 Year or month ( m D kr e a o n r n k - e) (p Eg o y u p n t d) ( k l F m a k i n n a a d - r ) - F ( r fr a a n n c c e ) ( m m r G e a a i e r c n r k h - y ) s- G ( r d m e r a a e ) c c h e - (d H K o o o ll n n a g g r) (p H g e u a n n r g - y 6) ( I l t i a r l a y ) J ( a y p e a n n ) M ( e p x e i s c o o ) ( N g l u e a t i n l h d d e e s r r - ) Z (p e N o a e l u a w n n d d ) N (k o r r o w n a e) 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 .9386 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 .9289 31.711 29.558 7.2916 29.022 27. 760 64.481 398.92 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—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 .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 40.115 .6546 21.834 17. 586 5.0452 23. 438 16. 656 53.082 282.05 22. 707 May 1.8961 1. 8516 40.025 .6270 20.288 17. 582 5.0426 23.438 16. 654 53.079 261. 87 Year or month P (z o l l o a t n y d ) ( P es o g c r a u t l d u o - ) R ( u n l m i eu a a ) - ( S A p o o fr u u i t n c h a d)( S pe p s a e i t n a) ( S S m d t e o r e t l a t n l l a i t e t r s s - )(k S d r w o e n n e a - ) ( e S f r w r l a a i n t n c z d ) - ( T po u u rk n e d y ) U O n ff i i t c ( e i p d a o l K un in d F g ) d re o e m tr C U o o r ll u n e g - d uay N tr ( o p o n e l - l s c e o 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 4.6089 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—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 80.101 468. 24 61.609 35.620 2. 2674 July.. 18.808 4.2506 .7035 463.28 11.023 54.785 24.114 22.550 80. 021 468.15 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 60.659 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 Nov.. 3. 6067 .7088 397.15 10.039 46.246 23. 798 22.428 392.47 65.830 37.063 2. 2649 Dec. 3.6044 .7055 397. 41 9.950 46.102 23.796 22.422 393.01 65.830 36.457 2.2657 1940—Jan.... 3. 6259 .6896 397.86 9.950 46.484 23.806 22.419 396.39 65.830 36.360 2. 2595 Feb... 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 May.. 3. 2650 398.00 9.130 47.119 23. 791 22. 253 403.50 327.36 65.830 38. 603 2.2473 NOTE.—Developments affecting averages since July 1939 have been as follows: No rates certified for following days: Argentina—Aug. 26-Oct. 16; Belgium—since May 9; Brazil—Sept. 1; Bulgaria—since Aug. 29; Canada—official rate Mar. 1-21, first reported in addition to free rate beginn ng Mar. 22; Denmark—Aug. 26-31 and since April 8; Egypt—since Sept 1; Finland—Aug. 26-Sept. 1 and Sept. 3-5; Hungary—Aug. 26-Nov. 8 and Jan. 27-Feb. 8; Netherlands—since May 9; Norway—Aug. 26-29 and since April 8; Poland—since Aug. 25; Rumania—Aug. 26-Nov. 5 and since Jan. 31; Spain—Mar. 30-Apr. 1; Turkey—Aug. 25-28 and since Sept. 1; United Kingdom—official rate Mar. 1-24, first reported in addition to free rate beginning Mar. 25; Uruguay—controlled rate, Sept. 1-Nov. 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 StraitStSettlements; Nov., Dec, Jan., and Feb.— British India, Germany, and Yugoslavia; Dec, Jan., and Feb.—Finland; Mar.—Finland, Germany, and Yugoslavia; Apr.—New Zealand; Apr. and May—Germany, Sweden, and Yugoslavia. For further information concerning nominal status of exchange quotations, special factors affecting the averages, and changes in the bases of quotation, see BULLETIN for September 1939, p. 831; March 1939, p. 236; and March 1938, p. 244. JULY 1940 739 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

PRICE MOVEMENTS IN PRINCIPAL COUNTRIES WHOLESALE PRICES—ALL COMMODITIES [Index numbers] Year or month (1 U 9 S 2 t n 6 a i = t te e 1 d s 00) (1 C 92 a 6 n = a 1 d 0 a 0) ( K 1 U 9 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 00 y ) (19 I 2 t 8 a = ly 100) 1 ( 9 O J 0 a c 0 p t = o a 1 b n 0 e 0 r ) (1 N 9 l e a 1 2 t n 0 6 h 0 d - e ) 3 s r 0 - = ( S Ju = w l l 1 a i y t 0 n z 0 d 1 e ) 9 r 1 - 4 1926 -. 100 100 i 124 695 134 237 106 1929 _„. 627 137 220 100 141 1930.. 100 554 125 181 90 126 1931 88 500 111 153 76 110 1932..._ __ 427 97 161 65 96 1933 398 180 63 91 1934 376 178 63 90 1935__ 338 102 186 62 90 1936 94 411 104 198 64 96 1937 109 581 106 238 76 111 1938 101 653 106 251 72 107 1939 103 107 278 74 111 1939—April 97 675 106 266 70 106 May 684 107 97 270 70 107 June 683 107 270 70 106 July 678 107 270 70 107 August 674 107 272 71 107 September. 106 107 75 117 October.._ 111 107 81 120 November. 119 107 300 84 123 December. 122 108 314 85 125 1940—January- 126 108 () 320 128 A M Fe p a b r r i r c l u h ary.. 83 1 1 1 2 3 3 9 0 3 1 1 0 0 8 9 ( 2 2 ) ) 3 3 3 1 1 1 4 7 2 1 1 1 3 3 3 0 4 2 May P134 312 p Preliminary. 1 Approximate figure, derived from old index (1913=100). 2 No figures available since July 1939. 3 No figures available since August 1939. WHOLESALE PRICES—GROUPS OF COMMODITIES [Indexes for groups included in total index above] United States (1926=100) United Kingdom Prance (1913=100) Germany (1913=100) (1930=100) Year or month pr 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 ia u 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 l t - s P s r io o n v s i- a p t f r n I r i i n n o d a d i d l s s u u e r h s a c m e - w t d s i- p tr I r i i n o a s d d h l u u e fi d s c n - ts - 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—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 (i) (i) 108 (0 95 126 October 67 73 84 109 111 (0 0) 108 0) 96 126 November 67 72 84 114 121 0) 0) 108 (0 97 126 December 68 72 84 118 124 (0 0) 108 (0 97 127 1940—January 69 72 84 123 127 0) 108 0) 98 127 F M e a b r r c u h ary 6 6 8 9 7 7 1 0 8 8 3 3 1 1 2 2 5 6 1 12 3 9 1 0) 0 0 ) ) 1 11 0 0 8 0) 9 9 8 9 1 1 2 2 7 8 April 69 72 83 128 135 0) 0) 0) May 68 71 83 0) 0) 0) i No figures available since August 1939. Sources.-— See BULLETIN for April 1937, p. 372; March 1937, p. 276; October 1935, p. 678; March 1935, p. 180; and March 1931, p. 159. 740 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- Swit- United Eng- Ger- Nether- Swit- Year or States l land France many lands zerland Year or States i land France many lands zerland month 1935- July July 1913- 1911- June month 1935- July 1913- 1911- June 1939=1001914=1001914=1001914=1001913=1001914=100 1939=1001914=1001930=1001914=1001913=1001914=100 1926 161 554 146 161 160 1926 170 142 168 162 1929 154 611 156 162 156 1929 164 154 168 161 1930 145 614 146 150 152 1930 158 100 147 161 158 1931 _ _ -_ 131 611 131 136 141 1931 148 97 136 151 150 1932 126 536 116 119 125 1932 144 91 121 141 138 1933 120 491 113 120 117 1933 140 87 118 139 131 1934 122 481 118 124 115 1934 141 83 121 140 129 1935 125 423 120 118 114 1935 143 78 123 136 128 1936 130 470 122 120 120 1936 147 86 125 2 132 130 1937 139 601 122 127 130 1937 154 102 125 137 137 1938 141 702 122 130 130 1938 156 117 126 139 137 1939 141 123 130 132 1939 158 126 140 138 1939-April 94 135 734 122 129 1939-April 153 126 136 May 94 134 738 123 130 May 153 123 126 137 June 94 134 739 124 124 132 June __ . 99 153 127 136 137 July 94 139 741 125 132 July 156 127 138 August 94 137 749 125 124 131 August 155 127 137 137 September 98 138 122 128 133 September 101 155 126 139 138 October.._ 98 154 122 133 136 October 165 126 143 140 November 97 157 122 136 138 November 169 126 144 142 December, 95 157 123 137 138 December. 100 173 126 146 142 1940-January ___ 95 157 124 138 139 1940-January. _. 174 127 146 144 February. _ 97 161 124 140 139 February. 177 127 148 145 March- 96 161 126 140 March 100 179 129 145 April 96 158 142 April 178 147 May 97 159 May 180 1 Revised series. Monthly data back to 1935 for retail foods and quarterly data back to 1933 for cost of living may be obtained from the Bureau of Labor Statistics. 2 Revised index from March 1936 (see BULLETIN for April 1937, p. 373). 3 No figures available since May 1939. 4 No figures available since August 1939. Sources.—See BULLETIN for October 1939, p. 943, and April 1937, p. 373. SECURITY PRICES [Index numbers except as otherwise specified] Bonds Common stocks Year or month ( p U a S r v n t i e c a i r e t t a e e ) g s d * e ( 1 D E 9 e n 2 c 1 g e = l m a 1 n 0 b d 0 e ) r (1 F 91 r 3 a = n 1 c 0 e 0) G (a p e v r r e i m c r e a a ) g n e y N la e n th d e s r 2 - U S n ta i t t e e s d Engla ( n 1 d 926=10 F 0 r ) ance Germany (1 N 9 l e 3 a t 0 n h = d e 1 s r 0 - 0) Number of issues. _ 60 87 36 139 8 420 278 300 329 100 1926 97.6 110.0 57.4 100.0 100.0 100.0 100.0 1929 - - 98.1 110.2 85.1 81.4 100.0 190.3 119.5 217.6 122.8 1930 99.3 111.8 95.8 83.3 104.3 149.8 102.6 187.6 100.2 100 1931 90.9 108.4 96.9 3 83.4 104.1 94.7 78.9' 132.2 3 78.0 70 1932 69.5 113.2 88.6 3 67.1 94.8 48.6 67.9 105.2 3 50.3 46 1933 73.4 119.7 81.3 82.5 105.3 63.0 78.6 99.6 61.7 52 1934 84.5 127.5 82.1 90.7 113.4 72.4 85.7 83.3 71.1 55 1935 .. 88.6 129.9 83.5 95.3 107.8 78.3 86.3 79.7 82.9 55 1936 97.5 131.2 76.3 95.8 109.1 111.0 97.0 77.2 91.6 66 1937 93.4 124.6 75.1 98.7 4101.8 111.8 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—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 98.9 79.6 92.4 72.0 92.8 92.1 October 82.9 109.5 98.9 80.3 95.3 74.9 92.3 87.7 November.. _ 83.0 112.3 99.0 80.9 94.2 76.0 94.5 85.8 December... 82.1 112.4 99.0 77.2 91.8 75.7 97.8 84.3 1940—January 82.4 117.6 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 March . 82.1 119.8 99.9 76.4 91.5 77.9 106.6 85.7 April 82.5 119.4 100.2 92.9 77.4 109.3 May 79.4 116; 8 83.0 73.1 1 Prices derived from average yields for 60 corporate bonds as published by Standard Statistics Co. 2 Indexes of reciprocals of average yields. For old index, 1929-1936, 1929=100; average yield in base year was 4.57 per cent. For new index beginning January 1937, January-March 1937=100; average yield in base period was 3.39 per cent. 3 Exchange closed from July 13 to Sept. 2,1931, and from Sept. 19, 1931, to Apr. 11,1932. Index for 1931 represents average of months January- June; index for 1932 represents average of months May-December. 4 New index. See note 2. * No figures available since August 1939. Sources.—See BULLETIN for November 1937, p. 1172; July 1937, p. 698; April 1937, p. 373; June 1935, p. 394; and February 1932, p. 121. JULY 1940 741 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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 101the Board and is for sale to the public at 50 cents Leading Cities a copy. Data available as of June 14,1940, are plotted Bank Debits on the latest edition. Tuesday: The FEDERAL RESERVE ACT AS AMENDED to October Money Rates—Open-Market Rates in New York 1, 1935, with mimeographed supplements showing City amendments to date, has been printed by the Board Wednesday: and will be supplied without charge. 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 New digests 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: Department Store Sales PROBLEMS OF BANKING AND BANK SUPERVISION. Excerpts from the 1938 Annual Report of the Board of MONTHLY Governors of the Federal Reserve System. 33 pages. Federal Reserve Bulletin—released about the 4th MONETARY MEASURES AND OBJECTIVES. Three stateof the month (subscription price $2.00 per ments by the Board on objectives of monetary policy, annum, single copies 20 cents; outside of the on proposals to maintain prices at fixed levels through United States, Canada, Mexico, and the insular monetary action, and on legislative proposals relatpossessions, 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 mem- Business Indexes—released about the 16th of theber bank reserve funds and uses to which such funds month are put as indicated by Federal Reserve and Treas- Bank Debits—released between the 6th and 12thury statements. 31 pages. July 1935. of the month ANALYSES OF THE BANKING STRUCTURE—As of Foreign Exchange Rates—released about the 1stDecember 31, 1935. Number, deposits, and loans and of the month investments of banks classified by size of bank and Money Rates—released about the 3rd of the month town and by other factors. 33 pages. QUARTERLY THE GOLD PROBLEM TODAY, by E. A. Goldenweiser Member Bank Call Report (3 or 4 times a year —reprint of article, 4 pages, January 1940. depending upon number of calls for condition THE PAR COLLECTION SYSTEM OF THE FEDERAL reports) RESERVE BANKS, by George B. Vest—reprint of List of Stocks Registered on National Securities article, 8 pages, February 1940. Exchanges. Issued annually in February with THE BANKS AND IDLE MONEY, by Woodlief Thomas quarterly supplements (subscription price 25 —reprint of article, 9 pages, March 1940. cents for the List and three supplements; five or more copies on one order, 20 cents per copy; fifty CHEAP MONEY AND THE FEDERAL RESERVE SYSTEM, or more copies on one order, 15 cents per copy).by E. A. Goldenweiser—reprint of article, 5 pages, May 1940. ANNUALLY OWNERSHIP AND UTILIZATION OF THE MONETARY Bank Debits—released ordinarily in February GOLD STOCK—Reprint of article, 3 pages, May and Annual Report (covers calendar year) June 1940. 742 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 FRED A. NELSON, Assistant Secretary WALTER WTATT, General Counsel J. P. DREIBELBIS, Assistant General Counsel GEORGE B. VEST, Assistant General Counsel B. MAGRUDER WINGFIELD, Assistant General Counsel E. A. GOLDENWEISER, Director, Division of Research and Statistics WOODLIEF 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. ROUSE, Manager of System Open Market Account WALTER LICHTENSTEIN, Secretary JULY 1940 743 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 Reserve 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 i New York Owen D. Young Beardsley Ruml George L. Harrison Allan Sproul Ray M. Gidney L. Werner Knoke 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 TTrnoct f TTill Clarence A. Mcllhenny Cleveland Qeorge C. Brainard.__ Reynold E. Klages Matthew J. Fleming Frank J. Zurlinden _ William H. Fletcher William F. Taylor « George H. Wagner Richmond Robert Lassiter William G.Wysor.... Hugh Leach. John S. Walden, Jr _ John G. Fry George H. Keesee * 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 1 M inneapolis Walter C. Coffey Roger B Shepard John N. Peyton Oliver S Powell Ernest W. Swanson Harry I. Ziemer « 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 C. Force- St. George Holden William A. Day Ira Clerk Cecil E. Earhart 1 William M. Hale Richard B. West 1 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 David L Davis Chicago: Salt Lake City Branch Winnie L. Partner St. L D o e u t i r s o : it Branch Seattle Branch Clarence R Shaw Little Rock Branch Arthur F. Bailey Louisville Branch Charles A. Schacht Memphis Branch _ . _ . William H. Glasgow 744 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

From a Painting on Wall of Board Room, Federal Reserve linilding, Washington Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis