Federal Reserve Bulletin, 1941-11

FEDERAL RESERVE BULLETIN NOVEMBER 1941 Review of the Month—Treasury Finance and Banking Developments Amendment of Consumer Credit Regulation Consumer Credit—Amendment to, and Interpretations of, Regulation W Economic Aspects of Federal, State, and Local Taxation Annual Report of the Bank for International Settlements BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Contents PAGE Review of the Month—Treasury Finance and Banking Developments. 1077-1083 Amendment of Consumer Credit Regulation. 1084-1086 Industrial Production, By Selected Groups, Expressed as Points in the Total Index (See pp. 1187-1189 for tables) 1086 From a Legal Standpoint: Inactive Executive Officer Serving as Director and Member of Discount Committee 1087 Consumer Credit—Amendment to, and Interpretations of, Regulation W 1087-1094 Foreign Funds Control—General Licenses Issued by the Secretary of the Treasury 1094-1097 Economic Aspects of Federal, State, and Local Taxation, by Marriner S. Eccles 1098-1103 From the Board's Correspondence—Proposal to Tax Bank Deposits; Extent to which Reserve Banks Can Finance Defense Expenditures. 1104-1105 Current Events . 1105 Member Bank Earnings, First Half of 1941 (See p. use for table) . 1106 Annual Report of the Bank for International Settlements. 1107-1139 National Summary of Business Conditions. 1140-1141 Financial, Industrial, Commercial Statistics, U. S. (See p. ius for list of tables) 1143-1189 International Financial Statistics (See p. 1190 for list of tables). 1190-1206 Board of Governors and Staff; Open Market Committee and Staff; Federal Advisory Council 1207 Senior Officers of Federal Reserve Banks; Managing Directors of Branches 1208 Subscription Price of Bulletin Federal Reserve Publications . 1209-1210 The Federal Reserve BULLETIN is issued monthly by the Board of Governors of the Federal Reserve System. It is sent to member banks without charge. The subscription price in the United States and its possessions, Canada, Chile, Colombia, Costa Rica, Cuba, Dominican Republic, Ecuador, Guatemala, Haiti, Republic of Honduras, Mexico, Newfoundland (including Labrador), Nicaragua, Panama, Paraguay, Peru, El Salvador, Uruguay, and Venezuela, is $2.00 per annum, or 20 cents per copy; elsewhere, $2.60 per annum or 25 cents per copy. Group subscriptions for 10 or more copies, in the United States, 15 cents per copy per month, or $1.50 for 12 months. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

mtn nilHBOD i Federal Reserve Bank of Kansas City, 10th Street and Grand Avenue, Kansas City, Missouri Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN VOL. 27 NOVEMBER 1941 No. 11 llealtitij finance and Hanking *Pe\/eLopmentl. Acceleration of the defense effort in recent early this year principally on account of an months has resulted in a rapid rise in Govern- increase in currency in circulation, were rement disbursements, and estimates of expen- duced further in the latter part of October as ditures for the current fiscal year have been a result of cash payments by banks to the enlarged. The Government's objective has Treasury for the new bond issue. Excess rebeen to meet the increased outlays by methods serves were also reduced on November 1 by that would contribute as little as possible to the coming into effect of an increase of about inflationary trends. With this in mind a tax 1.2 billion dollars in reserve requirements in bill was enacted that is expected to raise an accordance with the action announced by the additional 3.5 billion dollars a year. In so far Board of Governors on September 23. As a as the Government must resort to borrowing result of these developments excess reserves it has announced a policy of issuing obliga- of member banks, which at their peak a year tions that will be purchased largely by invest- ago amounted to nearly 7 billion dollars, were ors other than commercial banks. This is for by November 1 reduced to 3.5 billion dollars. the reason that bank purchases of securities At their present level excess reserves are create new deposits available for consumer lower than at any time since March 1939 but expenditures, while purchases by other in- are still larger than they ever were prior to vestors tap previously existing funds instead that date. of creating new ones. Two new instru- Appropriations and authorizations for dements introduced for this purpose are defense fense have increased from about 20 billion savings bonds and tax anticipation notes. dollars at the end of Oc- Tax receipts and proceeds from the sale of Progress of tober 1940 to about 60 bildefense bonds and tax-anticipation notes, to- defense program ,. , ,, .. , gether with a reduction in the working bal- lion dollars at the present ance, were sufficient to meet the larger part time. These figures are those covered by the of the Treasury's requirements from July to regular budget and include outlays for the the middle of October. In the latter part of War and Navy Departments, lend-lease aid, October, however, the Treasury made a large defense housing, and defense activities of civil public offering of long-term bonds which departments and agencies. They exclude exbrought in about 1.3 billion dollars. Toward penditures to be financed by the Reconstructhe end of the month its offerings of Treasury tion Finance Corporation as well as British bills were increased from 100 million dollars Government orders in this country for milito 150 million dollars a week. tary purposes placed prior to the beginning Curtailment of offerings of open-market of lend-lease aid. Including these two items, securities by the Treasury was reflected from the total program exceeds 67 billion dollars. July to the middle of October in stability of Expansion in the program has been re- Government security holdings by commercial flected in marked increases in actual cash outbanks. In the latter part of October, however, lays for defense purposes. Last January the banks' holdings increased owing to purchases Budget Bureau estimated that defense expenof the new Treasury bond offering. Bank ditures for the fiscal year beginning in July, loans have continued to increase at a rapid 1941, would amount to 11 billion dollars. In rate. Bank reserves, which had declined since June the estimate was raised to nearly 16 billion dollars and again on October 5 to 18 1077 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Review of the Month billion dollars. Monthly defense expenditures to 12.0 billion dollars, which would leave a from the budget, as shown in the chart, in- deficit for the fiscal year of 12.6 billion dolcreased from about 300 million dollars in lars. The following table gives a summary of October 1940, to 800 million dollars in June Treasury receipts and expenditures during of this year, and further to about 1,500 mil-the first four months of the current fiscal lion dollars in October. On the basis of year and the preceding year, with the new estimates for the full fiscal year 1942 com- NATIONAL DEFENSE EXPENDITURES pared with actual results in 1941. The increase in defense expenditures during the current fiscal year is estimated at 11.7 billion dollars. The actual increase in the first four months of the fiscal year was 4 billion dollars. Non-defense expenditures have been somewhat below the level of a year ago. TREASURY RECEIPTS AND EXPENDITURES [In millions of dollars] July-October Fiscal years 1940 1941 1941 1942 (est.) Budget expenditures: National defense 918 4,931 6,255 18,000 / 200 Other. ...- 2,234 2,153 6,456 6,581 Total 3,152 7,084 12, 711 24, 581 Net budget receipts 1,822 2,390 7,607 •11,998 1940 1941 Excess of budget expenditures 1,330 4,694 5,103 12,583 Budget accounts on basis of daily Treasury Statements. Trust accounts, etc., excess of receipts (—) or expenditures (+). . -189 -80 +148 the latest budget estimates, expenditures for Change in general fund balance +29 +8 +742 the rest of this fiscal year will average about Increase in gross direct debt 1,170 4,623 5,994 1,650 million dollars a month. Defense expenditures by certain Government corpora- Budget receipts are estimated to increase tions, such as the Reconstruction Finance by 4.4 billion dollars during the current fiscal Corporation and its subsidiary defense com- year over last year. Through October, the panies, not included in the budget, have also actual increase over the same period last year increased in the past year. Recently the was about 600 million dollars, the largest part Reconstruction Finance Corporation made of which was in income tax receipts, reflectloans to the British Government for payments ing both increased taxes imposed by the reon war orders placed in this country prior venue acts of 1940 and the higher level of to the lend-lease legislation. By the end ofincome in the calendar year 1940, as com- October out of the total defense program of pared with 1939. Large increases in receipts 67 billion dollars for all purposes about 15 during the current year will occur in the pebillion dollars had been spent. riod January to June 1942, when income tax Revised estimates of Treasury receipts and collections will be based on incomes for the expenditures for the current fiscal year which calendar year 1941 and will also reflect the ends next June, issued by increases in taxes provided in the Revenue the Bureau of the Budget Act of 1941. on October 5, increased es- The deficit in budget accounts during the timates of total expenditures by 2.4 billion first four months of the current fiscal year dollars to 24.6 billion dollars. Estimated net amounted to 4.7 billion dollars. Except for receipts were increased by 2.6 billion dollars a small amount of net receipts in accounts 1078 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Review of the Month outside the regular budget, these require- cent on net income in excess of that amount. ments were met by an increase in the public It differs in its effect from an equivalent indebt. On the basis of current estimates, re- crease in the normal tax because it applies quirements in budget accounts for the rest also to income from partially tax-exempt of this fiscal year will amount to about 8 securities. billion dollars. No change is made in the general frame- On September 20 the President signed the work of the excess profits tax under which Revenue Act of 1941. The estimated addi- corporations have the option of calculating tional yield resulting from this the "normal profits" credit from which ex- Acte<rfei94ie legislation, on a full-year basis, cess profits are measured with reference is shown in the following table. either to base period earnings or to invested Because of the lag in the payment of income capital. The rate of return allowed on statutaxes and the fact that increased excise taxes tory invested capital is lowered from its will be in effect only for three-fourths of the present level of 8 per cent to 7 per cent with fiscal year, it has been estimated that only respect to invested capital in excess of 5 milabout 2 billion dollars of the full amount of lion dollars. A substantial increase in excess 3.5 billion dollars will be collected in the fiscalprofits tax revenues, partly offset by a smaller year 1942. decline in normal corporation tax, is ob- Taxes on the incomes of corporations and tained by reversing the sequence in which individuals, on estates, and gifts, the capital corporation income tax and excess profits stock tax and many excise taxes are increased tax liabilities are determined. Under preand new taxes are imposed. The 10 per cent viously existing law, corporation normal tax defense tax imposed by the Revenue Act of was computed first and was allowed as a 1940 is integrated into the regular rate deduction both in computing "normal profits" structures. and current profits subject to excess profits Corporatiofi taxes.—A surtax on corporatetax. Under the Revenue Act of 1941, excess incomes is imposed at the rate of 6 per cent profits tax liability is computed first, and on the first $25,000 of net income and 7 per normal and surtax are not allowed as deductions. Excess profits taxes, however, are allowed as a deduction in determining income ESTIMATED ADDITIONAL YIELD OF THE REVENUE ACT OF 1941, As COMPARED WITH PREVIOUSLY for normal and surtax purposes. For corpo- EXISTING LAW * rations choosing the invested capital method, [In millions of dollars] it is provided that, with certain restrictions, Increase or 125 per cent of equity capital invested after decrease (—) December 31, 1940, shall be counted in detertncome taxes: mining invested capital. The exemption from Corporation: Normal tax_ __ _ ______ -493. 3 excess profits tax of excess profits derived Surtax 763.1 Excess profits tax _ __ _ _ _ 1,112. 3 from the mining of certain strategic metals Total corporation income taxes _ _ 1, 382.1 in the United States is terminated. The Individual __ _ 1,144. 6 Total income taxes 2, 526. 7 rates of tax are increased by 10 percentage Miscellaneous internal revenue: Capital stock tax 22.3 points in each bracket and now range from G Es if t t a t t e a x t ax _ . .. _ ..__ _ . 1 1 4 6 1 . . 0 6 35 per cent on the first $20,000 of excess Excise and miscellaneous taxes2 846 8 profits to 60 per cent on that part of excess Total miscellaneous internal revenue2- - 1,026. 7 profits over $500,000. Total additional revenue. 3, 553. 4 Individual income taxes.—Personal exemp- 1 Treasury Department, Division of Research and Statistics. All tions under the individual income tax are estimates show full year effects. Estimates for corporation and individual income taxes are based on levels of income estimated for calendar reduced from $2,000 to $1,500 for heads of year 1941; all other estimates are based on income levels estimated for fiscal year 1942. families and from $800 to $750 for single 2 Excluding $47.5 million non-recurring floor-stock taxes. NOVEMBER 1941 1079 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Review of the Month individuals. Rates of surtax are raised; and sons, and the use of automobiles and boats. surtax is imposed on all income in excess of This list includes a number of articles using personal exemption and credit for depend- scarce resources needed for defense producents, instead of exempting, as heretofore, tion. the first $4,000 of such income. An optional As shown in the following table, the insimplified method of determining income terest-bearing direct debt of the Government taxes is provided for persons whose gross increased by 4.7 billion dollars income does not exceed $3,000 and is derived puWifdebl durin£ the first four months of wholly from specified sources; and the credit the current fiscal year. Of this for one dependent is disallowed in cases amount about 2.9 billion dollars is represented where the taxpayer's status as head of family by sales of savings bonds and new tax notes. is occasioned solely by the existence of one or more such dependents. INTEREST-BEARING DIRECT AND GUARANTEED SECURITIES The taxes on foreign income recipients and [In millions of dollars] the rates of the tax withheld at source on pay- Amounts ments to them are increased. The existing outstanding Change authorization to conclude treaties reducing since June 30 June 30, October these rates with contiguous countries is ex- 1941 31, 1941 tended to cover all countries of the Western Direct obligations: Hemisphere. It is provided that taxpayers Treasury bonds 30, 215 31, 759 +1, 544 Treasury notes - _ _ 5,698 5,509 -189 owning non-interest bearing obligations, such Treasury bills 1,603 1,404 -199 Postal savings and pre-war bonds.. 196 196 as non-interest bearing defense bonds, issued Marketable issues—total 37,713 38,869 +1,156 at a discount and redeemable for fixed U. S. savings bonds... 4,314 5,394 +1,080 amounts increasing at stated intervals may Tax anticipation notes 1,818 +1,818 Depositary bonds 61 +61 report such increments of value as income on Adjusted service bonds 241 235 -6 an accrual basis even though they report Public issues—total. _._ .... 42, 267 46, 377 +4,110 Special issues 6,120 6,664 +544 other income on a cash basis. Certain sim- Total direct obligations 48, 387 53, 040 +4,653 plifications in income tax accounting are in- Guaranteed obligations 6, 360 6,930 +570 troduced with respect to short-term obligations issued on a discount basis by the Fed- The open-market direct debt increased by 1.2 eral, State, or local governments. billion dollars, reflecting the sale for cash in Excise and miscellaneous taxes.—Existing October of 1.3 billion dollars of long Treasury taxes are increased or new taxes are imposed bonds and the sale of an additional 100 million on automobiles, trucks, buses, and their parts, dollars of these bonds to Government agencies refrigerators, business and store machines, and trust funds, offset in part by the net recommercial washing machines, electric, gas, demption of 200 million dollars of Treasury and oil appliances, radios, phonographs, rec- bills. In addition, 200 million dollars of ords, and musical instruments, photographic maturing notes were exchanged for the new apparatus, optical equipment, electric signs, bonds. Special issues to Government agencies light bulbs and tubes; on tires and tubes and and trust funds increased by 500 million dolother rubber articles; on safe deposit boxes, lars. The guaranteed debt showed an insporting goods, luggage, toilet preparations, crease of about 600 million dollars. furs, matches, playing cards, and jewelry; on Acceleration in the rate of sale of savings distilled spirits and wines; on admissions, bonds is indicated by the fact that for the cabarets, roof-gardens, club dues, coin oper- six-month period May to October of this year ated amusement and gaming devices, bowling sales of defense savings bonds totaled 1.8 bilalleys, and billiard and pool tables; on com- lion dollars compared with net sales of 1 munications and the transportation of per- billion dollars of the former savings bonds in 1080 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Review of the Month the full fiscal year 1940. As shown in the issued in relatively large amount, immediately following table the larger part of the sales of rose to a substantial premium and closed the defense savings bonds has been in Series F month at IO314. and G bonds. These bonds may be purchased The outstanding amount of Treasury bills by investors other than commercial banks in declined by 200 million dollars during the an amount of not more than $50,000 issue past four months. In September, 300 milprice, in any one calendar year for the two lion dollars of maturing bills were not reissues combined. Sales of the Series E bonds, placed. Beginning with the week of October which may be purchased only by individuals 22, however, an additional weekly amount in an amount not in excess of $5,000 maturity of 50 million dollars of bills was sold. value in any one calendar year, have ranged The amount of guaranteed debt increased between 100 million dollars and 150 million by 600 million dollars in July. At this time, dollars a month. the Treasury refunded 400 million dollars of maturing notes of the Reconstruction Finance SALES OF DEFENSE SAVINGS BONDS AND TAX NOTES Corporation and the Commodity Credit Cor- MAY-OCTOBER 1941 [Issue price. In millions of dollars] poration. In addition, cash was raised to finance these organizations. Defense savings bonds Tax anticipation notes During October the Treasury announced Total Se E ries S a e n r d ie s G F Total Se A ries Se B ries that in order to reduce the number of financing operations in the market on behalf of May 350 101 249 the Government and to simplify the financ- June 315 103 212 July 342 145 197 ing program, it is contemplated that all August _ 266 118 148 1,037 18 1,019 September 232 105 127 306 8 298 of the Government-guaranteed issues now October 271 123 148 475 7 468 outstanding in the hands of the public will Total 1,775 694 1,081 1,818 33 1,785 eventually be converted into Treasury issues. Receipts from the sales of the new tax The needs of the Government corporations notes, which began on August 1, amounted and agencies will be supplied directly by the to 1.8 billion dollars through the end of Oc-Treasury rather than by the sale of guartober. Only about 2 per cent of these were anteed securities. As a consequence of this Series A notes, which are designed for the program, the market will ultimately be dealrelatively small taxpayer and the use of which ing with but one class of Government obligafor tax purposes is limited to $1,200 principal tion. In this connection, on October 23 a new amount for any one taxpayer in any one cal-issue of 1 per cent March 1946 Treasury endar year. The Series B notes, which yield notes, dated November 1, was offered in exa lower investment return, are designed for change for the 300 million dollars of Reconthe large taxpayer, and the amount which struction Finance Corporation notes and 204 may be purchased by any one taxpayer is million dollars of Commodity Credit Corporalimited only by the amount of his tax liability. tion notes maturing in November. The 112 In October, the Treasury sold a new issue million dollars of United States Housing Auof 1.6 billion dollars of 21/ per cent 1967-1972thority notes maturing on November 1 were 2 Treasury bonds. Cash subscriptions totaled paid off in cash. 10.4 billion dollars, of which 12i/ per cent, As shown by the chart, prices of Gov- 2 or 1.3 billion dollars, were allotted. In addi- ernment securities are at a high level. tion, 100 million dollars of the new bonds After reaching all-time highs were sold to Government investment ac- Government around the first of August, security market counts, and about 200 million dollars were ex- both partially tax-exempt and changed for December 1941 notes. The newtaxable bonds fluctuated within a relatively issue, although of long term and low rate and narrow range until the latter part of October NOVEMBER 1941 1081 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Review of the Month when the long-term partially tax-exempt of the new issue of long-term bonds sold by bonds advanced to successive new high levels. the Treasury on October 20. Since the middle The yield on the partially tax-exempt bonds of last year, a period during which borrowing of 1960-65 declined to a new low of 1.95 perby the Treasury was increased by defense cent. The yield on the taxable bonds of 1956- needs, holdings of Government direct and 58 declined slightly to the previous record guaranteed securities at reporting member low of 2.09 per cent. Yields on notes have banks in leading cities have grown by over 3 risen somewhat since reaching new low levels billion dollars, or 26 per cent, and reached a new high level of 14.7 billion dollars. YIELDS ON GOVERNMENT SECURITIES At country banks holdings of United States Government direct and guaranteed obliga- TERM BONDS tions increased by 160 million dollars in the third quarter of the year, according to preliminary figures from the September 24 call report. These holdings have steadily risen since the middle of last year by an aggregate of 760 million dollars, or about 25 per cent. The sharp rise in commercial loans, which 3-5 YR. rREASURY NOTESv TAX EXEMPT began in the summer of 1940 when producers 1.00 A 3-e; YR TDFACIIDV MOTCC TAXABLE first began to receive large de- \ A-v. - fense orders> continued into October. Since August of last TREA.5URY BILLS year the increase has been almost uninter- ANEW ISSUES.* rupted and has amounted to 840 million dol- 1939 1940 1941 Weekly averages of daily yields of 3- to 5-year tax-exempt lars at New York City banks and to 1,260 Treasury notes, 3- to 5-year taxable Treasury notes, and partially tax-exempt Treasury bonds due or callable after 12 years, and million dollars at reporting banks in other average discount on new issues of 91-day Treasury bills (taxexempt through February 1941, and taxable thereafter) offered leading cities. In both cases the rise has within week. For weeks ending January 7, 1939 to October 25, 1941. amounted to about 50 per cent. Larger deearly in September. At the end of October, fense orders, as well as increased production the yield on 3-to-5 year tax-exempt notes was in other lines, have required more financing 0.45 per cent compared with 0.31 per cent of producers and distributors of goods and a early in September. The yield on taxable large part of the needs of the medium-size notes rose from 0.58 per cent to 0.77 per and small firms is being supplied by commercent. cial banks. After increasing rapidly for several months, Loans of banks outside leading cities have holdings of United States Government securi- also been increasing. According to prelimities by city banks showed little nary figures just made available in the mem- Bank holdings change in August and declined ber bank call report for September 24, loans 2iSu™ent somewhat during September of country banks rose by 215 million dollars and the early part of October, in the third quarter of the year. Since the principally as a result of a reduction during middle of 1940, loans of these banks have September of 300 million dollars in the increased by more than 800 million dollars, amount of Treasury bills outstanding. In or by about 17 per cent. the third week of October, however, reporting Bank deposits have increased further as banks increased their Government security the consequence of the expansion of bank holdings by 275 million dollars. Treasury loans and investments and of further gold bond holdings were increased by 325 million imports. The effect of these factors in indollars in this week, as a result of purchases creasing the amount of bank deposits has 1082 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Review of the Month been partially offset by large withdrawals of increase in the reserve requirement percentcurrency into circulation and, in the third ages, which was announced by the Board on week of October, by a sharp September 23, became effective. The new rebuilding up of Treasury de- quirements and those previously in force posits at the Federal Reserve are shown in the table on page 1145 of this Banks. Consequently adjusted demand de- BULLETIN. The new requirements are apposits at city banks have shown little net proximately one-seventh higher than those change since last July. which had been in effect since April 16, 1938. In New York City, demand deposits have The estimated effect of the increase in redeclined since July. At banks in other lead- quirements on the reserve position of the ing cities they have continued to increase, various classes of member banks is shown owing partly to the fact that commercial by the following table. By far the largest funds have been moving away from New York City to other parts of the country. CHANGES IN RESERVE POSITION OF MEMBER BANKS BY This movement of funds out of New York has CLASSES OF BANKS, NOVEMBER 1, 1941 also been reflected in a further growth of [In millions of dollars] bank deposits at country banks and in a rise Required in balances held by these banks with their reserves I r n e c s i r e n e r a v s e e r E es x e c r e v s e s s city correspondents—principally outside New Old New r m eq e u n ir ts e- b ( a n s e i w s) York. In addition to this outward movement basis basis of commercial funds, from New York City, Central reserve city banks: institutional and individual investors, who New York 3,630 4,110 480 920 Chicago 730 840 110 330 hold large balances in New York money Reserve city bankse 2,570 2,950 380 1, 450 Country banks6 1,130 1,330 200 790 market banks, have drawn on their deposits All member banks e8,060 9,230 1,170 3,490 to purchase Government securities, and this may account for some of the decline in de- c Estimated. posits at New York banks. amount of the increase in requirements, and Excess reserves of member banks, which the resulting decline in excess reserves, was declined by about 2 billion dollars from at city banks. As shown by the table, 480 January to August, increased million dollars of the decline in excess re- Decline in slightly in September but serves was at central reserve city banks in excess reserves showed a sharp decrease in New York; 110 million dollars at Chicago the latter part of October. At the close of central reserve city banks; 380 million dolthe month they amounted to about 4.6 billion. lars at banks in the 59 reserve cities; and The net decline of 2.3 billion dollars since about 200 million dollars at country banks. the peak reached last January was largely After the increase in reserve requirements due to increases of 1.8 billion dollars in money became effective on November 1, total excess in circulation and of 600 million dollars in reserves were about 3.5 billion dollars. This required reserves. Practically all of the de- year, therefore, the entire growth in excess cline occurred at New York City banks. reserves during 1939 and 1940 has been ab- Changes in member bank reserves and the sorbed. The amount of excess reserves refactors affecting them in recent years are maining, however, is larger than during any shown in the chart on page 1142 of this period prior to the spring of 1939 and could provide the basis for a further growth of as BULLETIN. On November 1 excess reserves were fur- much as 40 per cent in the present volume of ther reduced by 1.2 billion dollars, when the loans and investments of commercial banks. NOVEMBER 1941 1083 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

(zon5umet jQaauLation THE Board of Governors of the Federal take the article as security. The amendment Reserve System has adopted Amendment closes this loophole. No. 2 to Regulation W, dealing with consumer The figure $1500 was chosen because one credit. This amendment, which is effective of the purposes of the regulation is to dampen December 1, 1941 and is mainly of an admin- consumer demand for the listed articles, inistrative and technical nature, is printed on cluding automobiles, and the delivered price page 1087. of most automobiles, with the increased One change made by the amendment is excise tax, is now more than $1000, whereas that instalment loans of $1500 or less for at the time the regulation was issued a matine 'purpose of purchasing articles listed in jority of the automobiles sold for less than the Supplement, but not secured by them, are $1000. to be subject to the same rules as have been For modernization loans, however, the in effect for instalment loans secured by figure was left at $1000. In view of the curlisted articles recently purchased. The tailment of new building resulting from prioramendment also makes the 18-month maxi- ities and other governmental regulations, it mum maturity apply to all miscellaneous in- seemed undesirable to impose any further restalment loans of $1500 or less, instead of strictions on the financing of repairs and im- $1000 or less, as previously provided. In provements to old properties, particularly addition the amendment includes a provision since, in some of the communities affected, for an optional method of treating additions much of the material and labor entering into to outstanding credits, exemptions of certain such work are not scarce or needed in the business loans and certain real estate loans, defense program. a provision permitting irregular payments by farmers, and a number of minor technical Non-Purpose (Miscellaneous) Loans changes. The scope of the regulation with respect Purpose Loans to non-purpose loans (loans not secured by, A loan of $1500 or less which is for the and not for the purpose of purchasing, purpose of purchasing a listed article is to listed articles) is to be enlarged. Loans of be limited to the maximum credit value of $1500 or less, instead of $1000 or less, are to the article (66% per cent of the basis price be subject to the 18-month maximum main the case of an automobile), even though turity. A primary reason why non-purpose the loan is not secured by the listed article loans have been subject to the regulation is purchased. Under the regulation as origi- that, in existing circumstances, the purpose nally issued an instalment credit sale by a of the loan cannot always be definitely deterretailer was limited to this maximum credit mined and the loan may actually be to finance value and a loan secured by a listed article or refinance purchases of listed articles—as recently purchased was similarly limited. in cases, for example, where there has been a However, this left a loophole since a lender previous combination of a number of loans, could advance an amount equal to the full a refunding, or a temporary use of other value of an article so long as he did not funds of the borrower. Consequently, when 1084 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Amendment of Consumer Credit Regulation $1500 was selected as the figure for purpose Business Loans loans, it was considered appropriate to raise An instalment loan to the owner of a busithe figure for non-purpose loans to the same ness enterprise for the purpose of financing level. it, and not for the purpose of purchasing a listed article, is to be exempted. The Execu- Additions to Outstanding Credits tive Order and the regulation were designed If a lender who holds an instalment obli- to curtail the demand for consumer credit— gation advances additional money to the cus- not business credit. In the original regulatomer or if a retailer who is carrying an tion it was not found possible to differentiate outstanding instalment account sells an addi- between consumer loans and business loans tional article to the customer, the lender or except in so far as that was done by making retailer is given the option of treating the old the regulation apply only to miscellaneous and the new credits separately, or of consoli- instalment loans of $1000 or less. However, dating the two into a new credit with uniform since the amendment provided for the deterpayments. The payments on this new credit mination of the purpose of loans, whether seshall be as large as those called for under the cured by the articles or not, it became posold credit and even larger if this should be sible to make a specific exemption for businecessary to pay out the consolidated credit ness loans. * within 15 months. As originally issued, the regulation did not give this option, but pro- "Farmer Plans" vided that, after November 1, when a new In the case of farmers, any schedule of paycredit was extended to the same customer ments is to be permitted, provided the rethe old and new credits should be treated quired down payment is made and not less separately in applying the regulation. This than half the balance is to be paid within half rule would have interfered with the practice the maximum maturity. Although the reguof many lenders and retailers who have been lation when originally issued made some proaccustomed to consolidating the two credits vision for persons with seasonal incomes, the into a new credit with uniform instalments provision was found to be inadequate for throughout and would, in some cases, have farmers whose annual cash income may come imposed a number of mechanical difficulties. in two or three main payments. The provi- The option now offered provides, without an sion for irregular payments, safeguarded by undue liberalization of the regulation, a the requirement that half be paid in half the means by which the lenders and retailers maximum maturity, was considered necesmay permit uniform instalments. sary in order not to penalize farmers as com- An unqualified option to consolidate the old pared with other instalment purchasers. and new credits and treat them as one new credit with a maturity of 18 months would Small Down Payments have had the effect of permitting the lender or retailer to lengthen the term of the old Retailers are not required to obtain a down credit. For this reason and also in order to payment if it would be $2 or less. Under the help prevent the consolidation procedure from original regulation, the retailer was required operating in favor of one dealer or retailer as to obtain the prescribed down payment even against another or in favor of one class of if it was only a few cents. This was a nuicreditors as against another, the instalment sance both to the retailer and his customer payments are required to be not less than and had virtually no effect upon the total volthey were under the old credit and the ma- ume of consumer credit. A further reason for turity is limited to 15 months. the exemption was that it would eliminate NOVEMBER 1941 1085 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Amendment of Consumer Credit Regulation the down payment requirement on many sales ment credit to buy more than they need— of low-priced articles which are usually pur- since the monthly payments would be $5 chased by persons with very small incomes. whether the purchase be as small as $10 or as large as $90. Minimum Monthly Payments Real Estate Loans The provision in the original regulation requiring that instalments be not less than $5 Credit to finance or refinance the construcper month, which was to have become effec- tion or purchase of an entire residential tive January 1, 1942, was eliminated. This structure or other entire structure is to be was done because the provision would have exempted. The regulation as originally isoperated as a hardship on persons of very sued exempted loans secured by first mortsmall means, out of all proportion to its effect gages on improved real estate, but failed to upon the total volume of consumer credit, exempt a number of construction and financand because it would have tended, in some ing loans secured by junior mortgages. This instances, to influence purchasers on instal- has now been remedied. Dndu5ttial Production, by Selected y to up 5, £xptei5ed a5 Point* in the Total SJndax Tables giving seasonally adjusted figures the broad composition of the industrial strucfor the Board's series on output of dur- ture in each month and the extent to which able manufactures, nondurable manufactures, each grouping shown is responsible for minerals, and eight subgroupings of manu- changes in the total index. Figures for durfactures, all expressed as points in the total able manufactures, nondurable manufactures, index of industrial production, appear on and minerals are shown from January 1919 pages 1187 to 1189 of this BULLETIN. These to date and those for the other series from data serve a purpose not served by group in- 1935 to date. These are the data on which dexes expressed in terms of their own 1935- the industrial production charts in Federal 1939 averages as 100. They show not only Reserve Chart Book I are based. the relative movements of the groups but also 1086 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Ttom a JLeg al Standpoint Administrative interpretations of banking laws, new regulations issued by the Board of Governors, and other similar material. Inactive Executive Officer Serving as Director and ment, together with the text of Amendment No. 2: Member of Discount Committee Instalment loans of $1,500 or less (instead The Board has been requested to render an of $1,000 as previously) are made subject opinion on the question whether an officer of to the 18-month maturity limit (except a member bank, who is also serving as a direc- modernization loans, where the figure retor and as a member of the discount commit- mains $1,000). tee of the bank, is to be regarded as an execu- Instalment loans of $1,500 or less for the tive officer within the meaning of the Board's purpose of purchasing listed articles are made Regulation 0, as amended effective July 1, subject to the same limit on amount as now 1939, notwithstanding the adoption of a reso- applies to instalment loans secured by listed lution by the board of directors providing articles. that he is not authorized to participate in its In connection with all instalment loans of operating management. $1,500 or less and all instalment loans se- The Board of Governors has considered this cured by listed articles, the lender is required question in the light of the definition of the after January 1, 1942, to obtain a signed term "executive officer" in its Regulation 0, statement from the borrower as to the purthe views expressed by Federal Reserve pose of the loan. Banks and others who have considered this Down payments of $2 or less are no longer matter, and the authority of the Board to required; and the $5 minimum on monthly define the term "executive officer." The instalments (which was to become effective Board has concluded that an officer of a mem- January 1, 1942) is eliminated. ber bank, who is also serving as a director and Instalment loans to make down payments as a member of the discount committee and on listed articles are prohibited. with respect to whom a resolution as de- In addition to first mortgages, which are scribed above has been adopted by the board already exempt, credit extended to finance of directors, is to be considered an executive or refinance the construction or purchase of officer within the meaning of Regulation 0 an entire building is exempt. except in a case where a provision of the by- Instalment loans for business purposes are laws of the bank or a resolution of the board exempt (except in connection with the purof directors requires the service in rotation chase of listed articles). of every director as a member of the discount In connection with additions to outstandcommittee and the directors do in fact serve ing credits, the lender or seller is given an as members of the committee in accordance option: (1) the old credit and the addition with such by-law or resolution. may be treated separately in applying the regulation, or (2) the consolidated credit CONSUMER CREDIT may have a maturity of 15 months, with monthly instalments at least as large as Amendment to Regulation W under the old credit. Effective December 1, 1941, the Board of For farmers, any schedule of payments is Governors issued Amendment No. 2 to Regu- permitted, if the down payment and maturity lation W dealing with instalment credit, requirements of the regulation are complied which amends the regulation in several par- with, and if one-half of the balance is to be ticulars. There follows a nontechnical sum- paid within the first half of the maximum mary of the changes made by the amend- maturity. NOVEMBER 1941 1087 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

From a Legal Standpoint All these amendments are effective Decem- of instalment loan credit subject to this section 5(b). ber 1, 1941; and the effective date of sections (c) General Requirements.—Whether subject to section 5 (a) or section 5(b), the extension of instal- 8(a), (b), (c), and (d) is postponed from ment loan credit shall comply with the following November 1 to December 1, 1941. additional requirements: (1) The extension of instalment loan credit shall Amendment No. 2 to Regulation W be evidenced by a written instrument or record, and there shall be incorporated therein or attached Effective December 1, 1941, Regulation W thereto a written statement, of which a copy shall is amended in the following respects: be given to the obligor as promptly as circumstances will permit, and which shall set forth the SECTION 2(e) terms of payment and, if the loan is subject to section 5(a), the bona fide cash purchase price In section 2 (e) the figure $1,000 is changed used for determining the maximum credit value to $1,500. of the listed article involved; SECTION 4(e) (2) Except as permitted by section 5(c) (3), the total of the principal and any interest or Section 4(e) is stricken out and a new secfinance charges shall be payable in instalments tion 4(e), which reads as follows, is substi- which shall be substantially equal in amount or tuted : be so arranged that no instalment is substantially greater in amount than any preceding instalment; (e) Small Down Payments.—In any case in which and the down payment required by section 4 (a) would (3) Instalments shall be payable at approxibe $2.00 or less, the Registrant may disregard such mately equal intervals not exceeding one month, requirement. except that, when appropriate in order to facili- SECTION 5 tate repayment in accordance with the seasonal Section 5 is changed to read as follows: nature of the obligor's main source of income or to encourage off-seasonal purchases of seasonal goods, the payment schedule may reduce or omit SECTION 5. INSTALMENT LOAN CREDIT payments over any period or periods totaling not Except as otherwise permitted by section 6, any more than 4 months during the life of such extenextension of instalment loan credit shall comply with sion of credit if the schedule increases the schedthe following requirements: uled payments in such manner as to meet the (a) Loans Secured by or to Purchase Listed other requirements of this section 5. Articles.—If the extension of instalment loan credit is secured, or according to any oral or written agree- (d) Statement of the Borrower.—On and after ment of the parties is to become secured, by any January 1, 1942, no Registrant shall make any exlisted article which has been purchased within 45 tension of instalment loan credit (except under the days prior to, or is to be purchased at any time provisions of section 8(a)) unless, at or before the after, such extension of instalment loan credit; or execution of the loan contract, he shall have obtained if the extension of instalment loan credit, even though and accepted in good faith a signed Statement of the not so secured, is in a principal amount of $1,500 Borrower as to the purposes of the loan in form or less and the Registrant knows or has reason to prescribed by the Board. No obligor shall willfully know that the proceeds are to be used to purchase make any material misstatement or omission in such any listed article: Statement. The Registrant, acting in good faith, (1) The principal amount lent to the obligor may rely upon the facts set out by the obligor in (excluding any interest or finance charges, and such Statement and, when the Registrant is so the cost of any insurance) shall not exceed the acting, such facts shall be deemed to be correct maximum credit value of the listed article specified for the purposes of the Registrant. Until January in the Supplement; and, in determining such 1, 1942 (after which date a Statement of the Bormaximum credit value, the Registrant may accept rower must be obtained) the Registrant, in ascerin good faith a written statement signed by the taining the purposes of the loan or the maximum obligor setting forth the bona fide cash purchase credit value of any listed article, may, in good faith, price of the article and of any accessories and of accept and rely upon a written statement in any any services, except insurance, rendered in con- form signed by the obligor and such statement shall, nection with the acquisition thereof, which state- for the purposes of this regulation, be deemed to be ment so accepted shall, for purposes of this regu- correct. In case the Registrant accepts in good lation be deemed to be correct; and faith a written statement signed by the obligor (2) The maturity shall not exceed that specified that any listed article which secures an extension for the listed article in the Supplement, and such of instalment loan credit has not been purchased maximum maturity shall be calculated from the within 45 days prior to such extension of credit, date of purchase of such listed article or from the such statement shall, for the purposes of this reguladate of such extension of instalment loan credit, tion, be deemed to be correct. whichever is earlier. (e) Credit Subject to Section 5(a) Only in Part.— In case an extension of instalment loan credit con- (b) Miscellaneous Loans of $1,500 or Less.—If sists only in part of an extension of credit subject to the extension of instalment loan credit is not subject section 5 (a), the amount and terms of such extension to section 5(a) but is in a principal amount of of credit shall be such as would result if the credit $1,500 or less, the maximum maturity shall not were divided and each part treated in good faith as exceed that specified in the Supplement for extensions if it stood alone. 1088 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

From a Legal Standpoint A loan or part thereof which is secured by a listed (6) Additions to Outstanding Credit Held byarticle only because of an "overlap agreement," Registrant.—An extension of instalment sale credit "spreader clause," or other form of general over-all or instalment loan credit does not comply with the lien or only because the Registrant is prevented by requirements of this regulation if it is consolidated a State law or regulation from having in effect with any obligation or obligations held by the Regismore than one contract of loan from the same bor- trant evidencing any prior extension or extensions rower at the same time, but which otherwise would of instalment credit to the same obligor, unless the not be subject to section 5(a), shall not be deemed additional extension of credit complies with the to be so secured within the meaning of such section. maximum credit value limitations applicable thereto (/) Loans to Make Down Payments Prohibited.— (if any) and, in addition, the consolidated obligation An extension of instalment loan credit does not complies with one of the following options: comply with the requirements of this regulation if Option 1. The terms of the consolidated oblithe Registrant making such extension knows or has gation shall be such as would have been necesreason to know that any part of the proceeds thereof sary to meet the requirements of this regulation is to be used to make a down payment on the purchase if the two obligations had not been consolidated; price of any listed article: Provided, That if the or Registrant accepts in good faith a written statement Option 2. The consolidated obligation shall signed by the obligor that no part of the proceeds provide for a rate of payment, throughout its is to be so used, such statement shall, for the purterm, which is (A) at least as large per month poses of this regulation, be deemed to be correct. as the rate of payment or payments on the outstanding obligation or obligations being con- SECTION 6 (a) solidated would have been for the month com- Section 6 (a) is changed to read as follows: mencing on the date of consolidation, and (B) is larger to whatever extent may be necessary (a) Any extension of credit which is secured by a in order to repay the consolidated obligation bona fide first lien on improved real estate duly within 15 months. recorded or which is for the purpose of financing or refinancing the construction or purchase of an entire (c) Credit to Retire Obligations Held Elsewhere.— residential building or other entire structure. Any extension of instalment loan credit, the proceeds of which a Registrant knows or has reason to know SECTION 6(1) will be used in whole or in part to retire any extension of instalment credit not held by such Registrant, A new subsection reading as follows is shall be subje-ct to the provisions of this regulation added at the end of section 6: to the same extent as if the obligation being retired were held by the Registrant. (1) Any extension of instalment loan credit which (d) Statement of Necessity to Prevent Undue is made to a person whose income is derived prin- Hardship.—Notwithstanding the provisions of seccipally from the operation of a business enterprise tions 8(a), 8(b) and 8(c), if a Registrant accepts of which such person is the owner or proprietor, in good faith a statement of necessity as provided provided the extension of credit is for the purpose in the following paragraph, the renewed, revised or of financing such business enterprise and is not for consolidated obligation may provide for a schedule the purpose of purchasing any listed article or of repayment as though it were a new extension of secured by any listed article purchased within 45 instalment loan credit subject to section 5(b), even days before the extension of credit. though such action results in the reduction of the rate of repayment thereon. SECTIONS 8(a), 8(b), 8(c) AND 8(d) The requirements of a statement of necessity will The effective date of sections 8(a), 8(b), be complied with only if the Registrant accepts in 8(c) and 8(d) has been postponed from good faith a written statement in form and content prescribed by the Board and signed by the obligor November 1, 1941, to December 1, 1941, and that the contemplated renewal, revision or other they have been changed to read as follows: action is necessary in order to avoid undue hardship (a) Renewals or Revisions.—If any obligation or upon the obligor or his dependents resulting from claim evidencing any extension of instalment sale contingencies that were unforeseen by him at the credit or instalment loan credit is renewed or revised time of obtaining the original extension of instalment by a Registrant, the extension of instalment credit credit or which were beyond his control, which statedoes not comply with the requirements of this regu- ment also sets forth briefly the principal facts and lation if such renewal or revision has the effect of circumstances with respect to such contingencies and changing the terms of repayment to terms which specifically states that the renewal, revision, or other this regulation would not have permitted in the first action is not pursuant to a preconceived plan or an instance for such credit; Provided, That nothing in intention to evade or circumvent the requirements this regulation shall be construed to prevent any of this regulation. Until the Board has prescribed Registrant from making any renewal or revision, the form and content of the statement of necessity or taking any action that it shall deem necessary the Registrant may in good faith accept a written in good faith (1) with respect to any obligation of statement in any form, provided such statement any member of the armed forces of the United otherwise conforms to the requirements of this sec- States incurred prior to his induction into such tion. service, or (2) for the Registrant's own protection SECTION 9(f) in connection with any obligation which is in default and is the subject of bona fide collection effort by Old section 9(f), which is superseded by the Registrant. language in the amended section 5(e), is NOVEMBER 1941 1089 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

From a Legal Standpoint stricken out and a new section 9(f), which of transaction, as long as the statement conreads as follows, has been substituted: tains the required information. When the ontract is in the form of a lease agreement, (/) "Farmer Plans".—When appropriate for the such terminology as is applicable to a lease, purpose of facilitating repayment in accordance with the seasonal nature of the obligor's main source of giving the corresponding information, may income, an extension of instalment credit which is be used. made to a person who is engaged in agriculture and 3. The bona fide cash purchase price of a derives income principally therefrom may be payable in any amounts and at any intervals, notwith- particular article and accessories, including standing sections 4(c), 4(d) and 5(c) : Provided, relevant taxes, may be shown as a total with- That (1) the extension of credit complies with the out being itemized into various parts. Alapplicable provisions concerning the amount and though section 4(f) (2) requires itemization maximum maturity of the credit and (2) at least of (1) the article, (2) the accessories and one-half of the credit is to be repaid within the first half of the applicable maximum maturity. (3) the services referred to in the section, the items themselves may be itemized without SECTION 10 stating the portion of the total purchase price Section 10 is changed to read as follows: that relates to each. Accessories which are standard equipment for the article need not SECTION 10. EFFECTIVE DATE OF REGULATION be individually itemized, and a group of acces- This regulation shall become effective September sories which are sold as a single group by the 1, 1941, except that sections 8(a), 8(b), 8(c) and 8(d) and the amendments made by Amendment No. manufacturer may be shown in the statement 2 shall not become effective until December 1, 1941. as a unit. 4. The itemization for a new automobile SUPPLEMENT, PART 4 follows this same rule, and need not show In Part 4 of the Supplement, the figure separately the matters referred to in parapt,000 is changed to $1,500. graphs 1 through 4 of Part 3 (a) of the Supplement. As indicated above, however, Interpretations of Regulation W the accessories should be indicated, and so The Board of Governors of the Federal should the relevant services. Reserve System has issued the following 5. In the case of an extension of instalment interpretations of Regulation W relating to sale credit subject to section 4 of the regula- Consumer Credit: tion, item 2 under section 4(f) requires that the statement of transaction show the bona Statement of Transaction—Form and Contents fide cash purchase price of the article—the price at which the seller would sell the article Interpretation No. 84 of Regulation W for full cash payment—even though the sale The Board has received several questions will be made at a "time price" which includes regarding the application of sections 4(f) carrying charges. and 5(c) (1) of Regulation W, which become 6. The information referred to in each of effective October 1, 1941, and relate to the the seven paragraphs of section 4(f) must "statement of transaction" required in con- be set forth, and it is not sufficient that an nection with extension of instalment sale item of information may be obtained by credit or instalment loan credit. The answers mathematical derivation from other informaare given below: tion in the statement. However, if the in- 1. It is not necessary that all of the infor- terest or finance charge is no.t included in the mation required by section 4(f) or 5(c) (1) face amount of the obligation but is an addibe included on a single sheet of paper, but tional amount calculated pursuant to an if parts of the information appear on two arithmetic formula plainly set forth in the or more sheets it is necessary that these statement, paragraphs 5 and 6 do not require sheets be attached together, and that copies this amount to be shown in dollars and cents of all of them be given to the obligor together. oi- to be included in the statement of the The statement referred to in these sections, time balance. and the copy required to be given the cus- 7. In any case in which a State law or tomer, need not be identical in form. local regulation requires that sales taxes be 2. It is not necessary that the particular shown separately or requires in any other terminology used in the regulation ("bona respect more detail than that required by fide cash purchase price," "def erred balance," Regulation W, the regulation does not proand "time balance") be used in the statement hibit such further itemizing. 1090 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

From a Legal Standpoint Heating Stoves—Gas Heaters Suspended From Ceiling included in items 1 and 2, a charge which is reasonably related to the value of such serv- Interpretation No. 85 of Regulation W ices may be included in item 4. Likewise, The classification "Heating stoves and where the contract of sale includes any addispace heaters designed for household use" tional services connected with the delivery of does not include gas heating units designed the car, such as greasing the car for a certo be suspended from the ceiling and operated tain period or providing antifreeze, a reasonwith a fan circulator. able charge for such services may be included in item 4. On the other hand there may not be included in item 4 a charge which the Mechanical Refrigerators—Series of Small Cabinets dealer may make for "advertising" or for Interpretation No. 86 of Regulation W "warehousing," nor any other charges which The classification "mechanical refrigera- the dealer may make except bona fide charges tors" includes certain refrigerating systems for services which are actually rendered by consisting of (1) one or more cabinets of the seller to the purchaser and are not" inwhich each has less than 12 cubic feet rated cluded in items 1 and 2. capacity, and (2) a separate mechanical refrigeration unit servicing these cabinets. This is true even, though the aggregate ca- Water Heaters Under 85 Gallons Capacity pacity of the cabinets included in the system Interpretation No. 89 of Regulation W may be 12 cubic feet or more. The classification "water heaters designed for household use" includes all water heaters Automatic Gas Systems with a storage tank capacity of 85 gallons or less. Interpretation No. 87 of Regulation W Butane, propane, or similar automatic gas systems or containers are included in Group Cooking Stoves—Commercial Use Only—Continuous Heating E of the Supplement. Surface—Deep-Fat Fryer Interpretation No. 90 of Regulation W "Charges for Delivery" The classification "cooking stoves and Interpretation No. 88 of Regulation W ranges with less than seven heating surfaces" does not include cooking and baking equip- Part 3 (a) of the Supplement to Regulation ment that is clearly designed for commercial W provides that the maximum credit value use and not suitable for use in households, of a new automobile shall be 66% per cent of even though havmg less than seven heating the purchase price but that such maximum surfaces. A cooking stove or range or oven, credit value shall in no event exceed 66% per which is designed for commercial use in rescent of the sum of items numbered 1 through taurants and hotels, and which has a single 4 as set forth under part 3(a). In this conor continuous heating surface or heating unit, nection, the Board has received several quesis not included. A deep-fat fryer designed for tions as to the amounts which may be insuch use is not included. cluded under that portion of item 4 which permits the inclusion of "Any bona fide charges for delivery . . . not included in the Group E—"In Connection With Existing Structures" foregoing items." Interpretation No. 91 of Regulation W In general this provision permits only the inclusion of bona fide charges for services Question has been received as to whether which are actually rendered by the seller in materials and services for building a new connection with the delivery of a new auto- garage are included in Group E if the garage mobile and which are not included in the is on improved real estate upon which other manufacturer's retail quotation (item 1) or buildings are located but is itself a separate in transportation charges (item 2). For new structure. For purposes of Regulation example, charges for such services as lubri- W, materials and services in such circumcating, cleaning, polishing, or otherwise con- stances are not considered to be "in connecditioning the car may not be included under tion with existing structures" but are conitem 4 if these services are included in item sidered to be for new structures, and hence 1 or 2; but in case any such services are not not included in Group E. NOVEMBER 1941 1091 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

From a Legal Standpoint Second Mortgage—Sale Credit—Loan Credit to the requirements of Regulation W and $550 on a single-payment basis not subject to Interpretation No. 92 of Regulation W the regulation. A 24-month note for $650 secured by a sec- This is a single transaction and may not ond mortgage on a house is not subject to be divided by the Registrant in this manner. Regulation W if it is given by the purchaser to the seller as part of the purchase price of the house; and the note may be discounted by -Balloon" Note at End of 12 Months a bank under section 3(a)(2)(B). This Interpretation No. 95 of Regulation W would be true even if plumbing fixtures and other listed articles had been incorporated Questions have been received as to whether in the house, because for the purposes of a certain plan of repayment meets the re- Regulation W the sale would be regarded as quirements of Regulation W regarding 18 the sale of a house and not as the sale of months' maximum maturity and equal plumbing fixtures. monthly payments for instalment loan credit. There is provision for 11 equal Similarly, the fact that a $1500 instalment monthly payments, and a larger twelfth payloan is secured by a second mortgage on a ment at the end of the twelfth month for the house that was purchased within 45 days remainder. However, there is an express and which at the time of purchase contained agreement between the parties that when the plumbing fixtures or other listed articles pretwelfth payment falls due, unless the borviously installed, would not cause the loan to be subject to section 5 (a) as a loan secured rower has defaulted on an earlier payment by a "listed article which has been purchased or unless there is a material impairment of within 45 days." The recent purchase is con- his credit, only a portion of the twelfth paysidered to be the purchase of a house rather ment will actually be paid and the remaining than the purchase of a listed article, and theportion will be refinanced into six equal case would not be altered by the fact that the monthly payments in such manner that the seller of the house might have purchased and net result will be eighteen substantially equal installed the listed article only shortly before monthly payments. he sold the house and within 45 days prior Such an arrangement complies with the to the loan. On the other hand, section 5 (a) specified requirements of the regulation. would apply if the mortgagor had .owned the house for some time and had purchased and installed the listed articles within 45 days "Bona Fide Cash Purchase Price" prior to the loan, since in such a case the Interpretation No. 96 of Regulation W mortgagor's recent purchase would be a pur- The phrase "bona fide cash purchase price" chase of a listed article rather than the purin section 5 (a) (1) and section 5(c) (1) chase of a house. means the bona fide cash purchase price of the article and accessories purchased, includ- Air Conditioner—Portable Units ing any sales taxes thereon and any bona fide delivery and installation charges. Interpretation No. 93 of Regulation W The classification "room-unit air condi- Repairs and Alterations—Effect of Down Payment in tioners" includes portable units of one horse- Section 6 (b) power or less. Interpretation No. 97 of Regulation W Two Notes Covering One Repair Job A Registrant makes an extension of instalment sale credit arising out of the sale of ma- Interpretation No. 94 of Regulation W terials and services (including certain Group In the case of a home improvement that D articles) in connection with repairs, alterais carried out as a single job totaling $995, of tions or improvements upon urban, suburban which $550 is for a furnace and other Group or rural real property in connection with an D items while $445 is for Group E items, theexisting structure. The bona fide cash purquestion has been asked whether a Registrant chase price of all the materials and services financing the entire job may divide the financ-is $1500 and the bona fide cash purchase price ing into $445 on an instalment basis subject of the Group D articles is $700. The pur- 1092 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

From a Legal Standpoint chaser makes a cash payment of $150 and Statement of Transaction to be Furnished Promptly remains indebted to the seller in the amount Interpretation No. 100 of Regulation W of $1350. Is the transaction exempt under section 6(b) of the regulation? The Board has been asked whether the fol- The exemption in 6 (b) does not apply since lowing procedure complies with section 4(f) the $700 purchase price of the Group D of Regulation W. articles is more than 50 per cent of the over- The seller gives no statement of the transall deferred balance of $1350. action to the purchaser but authorizes the finance company which discounts the obligation to furnish the statement to the purchaser Repairs and Alterations—One Job, Two Notes in its normal course of business, with the result that the purchaser receives the state- Interpretation No. 98 of Regulation W ment approximately two weeks after the ob- Facts similar to W-97, but the bona fide ligation is discounted by the finance comcash purchase price of all the materials and pany. services is $3000 and the bona fide cash pur- The Board replied that this procedure does chase price of the Group D articles is $1400. not comply with the requirements of section The purchaser does not make any down-pay- 4(f). ment and remains indebted in the full amount of $3000. Inasmuch as $2500 is the maxi- Instalment Sale Contract May be Rescinded mum amount of a loan which may be insured by the Federal Housing Administration under Interpretation No. 101 of Regulation W Title I of the National Housing Act, the Regulation W does not prohibit the resciscustomer's obligation totaling $3000 is dision of an instalment sale contract by agreevided into two parts, one in the amount of ment of the parties at any time if the seller $2500 which is insured by the Federal Housrefunds all amounts received and the puring Administration, and the other in the chaser returns the article; as, for example, amount of $500 which is not insured. The where the article is found to be defective and $1400 of Group D items exceeds 50 per cent the seller is unable to replace it. However, ifof the $2500 but is less than 50 per cent of the purchaser returns the article several the $3000. Is the transaction exempt under months after the date of sale on the ground section 6(b)? that it is defective and if the seller does not Since the $3000 represents a single trans- replace the article but instead agrees with the action and is divided into two parts merely purchaser to rescind the sale and sell the for convenient treatment under the National purchaser another article of the same kind Housing Act, it is permissible to treat the or a similar article of a higher price, these $3000 as a unit, and hence as an exempt facts may indicate that the rescission was transaction under Section 6(b). merely a formality used for the purpose of evading the Regulation and that the transaction should have been treated as a trade-in Payments Slightly Less Than Amount Required as described in W-71. Interpretation No. 99 of Regulation W The Board was recently asked whether the Single Payment Credit Changed to Instalment Basis phrase "maximum credit value in per cent of Interpretation No. 102 of Regulation W basis price" in the Supplement to Regulation W should be interpreted literally or whether A Registrant sells a listed article under a down payments which are short a reasonable bona fide agreement that the purchase price amount are permissible. will be paid in a single payment 60 days after The Board replied that the "maximum the date of purchase. By reason of a change credit value" provided in the Supplement is in circumstances and not in pursuance of any a figure which should be calculated mathe- previous agreement or arrangement, at about matically and not be arrived at by approxi- the time the payment is to be made the purmation, and therefore the Regulation does not chaser asks that the purchase be changed to authorize an extension of credit which is even an instalment basis. Is it necessary to get a few cents in excess of the maximum pro- a down payment? From what date must the vided by the Regulation. maximum maturity be calculated? NOVEMBER 1941 1093 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

From a Legal Standpoint Since the sale was made under a bona fide on the part of the sale represented by the agreement and there were no evasive side unlisted article which he would have given, agreements between the parties, it is not in a similar combination sale, in the absence necessary under the present terms of the of the Regulation. regulation to get a down payment, and the maximum maturity is 18 months from the date on which the credit is changed to an FOREIGN FUNDS CONTROL instalment basis. General Licenses Issued by the Secretary of the Treasury Since the publication of certain General Air Conditioners—Capacity—Circulating Fans Licenses on pages 987-989 of the October Interpretation No. 103 of Regulation W 1941 Federal Reserve BULLETIN, the follow- The classification "Home air conditioning ing General Licenses have been issued by the systems" includes air cooling units that have Office of the Secretary of the Treasury under a rated capacity of 5 tons or less of refrigera-the authority of the Executive Order of April tion and that are designed for use with a 10, 1940, as amended, and Regulations issued central air circulating system. The classifi- pursuant thereto relating to transactions in cation does not include circulating fans un- foreign exchange, etc.: less they are incorporated in the unit. The classification of such a unit is not affected Treasury Department, Office of the Secretary, by the character of building in which it is October 9, 1941 to be used. General License No. 1A, Under Executive Order No. 8389, April 10, 19J+0, as Amended, and Regulations Plumbing Fixtures—Water Softeners Issued Pursuant Thereto, Relating to Transactions in Foreign Exchange, etc.* Interpretation No. 104 of Regulation W A general license is hereby granted authorizing The classification "Plumbing and sanitary transactions ordinarily incident to the transfer of fixtures designed for household use" includes securities from a blocked account in the name of any water softeners having a rated capacity of person to a blocked account in the same name in a 120,000 grains or less of hardness removal domestic bank, provided both of the following terms and conditions are complied with: between regenerations. (1) Such securities shall not be transferred from any blocked account in a domestic bank; and Listed and Unlisted Articles Sold Together (2) Such securities shall not be transferred from any other blocked account if such transfer represents, Interpretation No. 105 of Regulation W directly or indirectly, a transfer of the interest of a blocked country or national thereof to any other Section 4(g) of Regulation W provides country or person. that where a listed and an unlisted article are E. H. FOLEY, JR., sold at the same time, the permissible terms Acting Secretary of the Treasury. shall be determined by dividing the transaction into two parts, so that the sale of the Treasury Department, Office of the Secretary, listed article will comply with Regulation W October 9, 1941 and the sale of the unlisted article will be onGeneral License No. 2, as Amended, under Executive terms which the seller would have granted Order No. 8389, April 10, 1940, as Amended, and on that sale if standing alone. Regulations Issued Pursuant Thereto, Relating to Transactions in Foreign Exchange, etc.* Some sellers have established their own minimum down payment or minimum peri- General License No. 2 is amended to read as folodic payment requirements in connection lows: with instalment sales, but when two or more (1) A general license is hereby granted: articles are sold at the same time these re- (a) Authorizing any banking institution within quirements apply to the total. The Board the United States to debit any blocked account with has been asked whether section 4 (g) requires such banking institution (or with another office within the United States of such banking institusuch a seller to apply his minimum payment tion) in payment or reimbursement for normal requirements to the sale of the unlisted ar- service charges owed to such banking institution ticle as though the listed article had not been by the owner of such blocked account; sold to the' customer. The Board replied that the Regulation does not require him to do * Sec. 5(b), 40 Stat. 415 and 966; Sec. 2, 48 Stat. 1; 54 Stat. 179: Ex. Order 8389, April 10, 1940, as amended by Ex. Order so, but permits him to give the same terms 8785, June 14, 1941, and Ex. Order 8832, July 26, 1941; Regulations, April 10, 1940, as amended June 14, 1941, and July 26, 1941. 1094 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

From a Legal Standpoint (b) Authorizing any banking institution within (b) the active management and control of such the United States to make book entries against any partnership is vested in partners within the United foreign currency account maintained by it with a States who are not nationals of any blocked counbanking institution in any blocked country for the try (or are licensed as generally licensed purpose of responding to debits to such account for nationals) ; normal service charges in connection therewith. (c) since prior to June 17, 1940, no partner in (2) Any banking institution within the United such partnership has been a national of any blocked States which during any quarterly period makes any country other than China. entries to any account in an aggregate amount in (2) This general license shall not be deemed to excess of $25 under the authority of this general license as a generally licensed national any partnerlicense shall file promptly with the appropriate Fed- ship which is a national of any blocked country other eral Reserve Bank a report showing the name of such than China. account and the aggregate amount of the entries to (3) All partnerships licensed herein as generally such account under the authority of this general licensed nationals shall file with the appropriate Fedlicense during such quarterly period. eral Reserve Bank within thirty days after the date (3) As used in this general license, the term "nor- hereof a report in triplicate setting forth: (a) the mal service charges" shall include charges in payment name and address of the partnership; (b) the name, or reimbursement for interest due; cable, telegraph, address and nationality of each partner; and (c) a or telephone charges; postage costs; custody fees; statement that the partnership is licensed as a genersmall adjustment charges to correct bookkeeping ally licensed national under this general license. Any errors; and, but not by way of limitation, minimum partnership not complying with this requirement is balance charges, account carrying charges, notary not authorized to engage in any transaction under and protest fees, and charges for reference books, this general license. photostats, credit reports, transcripts of statements, (4) Reports on Form TFR-300 are not required to registered mail insurance, stationery and supplies, be filed with respect to the property interests of any checkbooks, and other similar items. partnership licensed herein as a generally licensed E. H. FOLEY, JR., national. Acting Secretary of the Treasury. E. H. FOLEY, JR., Acting Secretary of the Treasury. Treasury Department, Office of the Secretary, October 9, 1941 Treasury Department, Office of the Secretary, October 9, 1941 Amendment of General License No. 53, under Executive Order No. 8389, April 10, 191*0, as Amended,General License No. 71*, under Executive Order No. and Regulations Issued Pursuant Thereto, Relating 8389, April 10, 191*0, as Amended, and Regulations to Transactions in Foreign Exchange, etc.* Issued Pursuant Thereto, Relating to Transactions in Foreign Exchange, etc.* The definition of the term "generally licensed trade area" appearing in section (3) (a) of General License (1) A general-license is hereby granted authoriz- No. 53 is hereby amended in the following respects: ing payments and transfers of credit from blocked accounts in domestic banks for the necessary personal (a) The word "and" is deleted in item (vii) ; expenses within the United States of any citizen of (b) A semi-colon is substituted for the period in the United States who is within any foreign country, item (viii) ; and and for the personal expenses within the United (c) The following items are added to the end States of the family of such citizen, provided that the thereof: following terms and conditions are complied with : (ix) Syria and Lebanon; and (a) Such payments and transfers are made only (x) (1) French Equatorial Africa, including from blocked accounts in the name of, or in which the Cameroons; (2) New Caledonia; (3) the beneficial interest is held by, such citizen or Tahiti; (4) the French Establishments his family; in India. (b) The total of all such payments and transfers E. H. FOLEY, JR., made under this general license does not exceed Acting Secretary of the Treasury. $500 in any one calendar month for any such citizen or his family. Treasury Department, Office of the Secretary, October 9, 1941 (2) This general license shall not be deemed to General License No. 73, under Executive Order No. authorize any payment or transfer of credit which 8389, April 10, 191*0, as Amended, and Regulationscould not be effected without a license if such citizen Issued Pursuant Thereto, Relating to Transactions were a generally licensed national. in Foreign Exchange, etc.* (3) Domestic banks making any such payment or transfer shall satisfy themselves that the foregoing (1) A general license is hereby granted licensing terms and conditions are complied with and shall file as a generally licensed national any partnership promptly with the appropriate Federal Reserve Bank which is a national of China and which meets all of separate monthly reports in triplicate on Form TFRthe following conditions: 111 respecting the transactions for the account of (a) the partnership has been continuously en- each such citizen. gaged in business within the continental United E. H. FOLEY, JR., States since prior to June 17, 1940; Acting Secretary of the Treasury. * Sec. 5(b), 40 Stat. 415 and 966; Sec. 2, 48 Stat. 1; 54 Stat. * Sec. 5(b), 40 Stat. 415 and 966; Sec. 2, 48 Stat. 1; 54 Stat. 179; Ex. Order 8389, April 10, 1940, as amended by Ex. Order 179 ; Ex. Order 8389, April 10, 1940, as amended by Ex. Order 8785, June 14, 1941, and Ex. Order 8832, July 26, 1941; Regula-8785, June 14, 1941, and Ex. Order 8832, July 26, 1941; Regulations, April 10, 1940, as amended June 14, 1941, and July 26, 1941.tions, April 10, 1940, as amended June 14, 1941, and July 26, 1941. NOVEMBER 1941 1095 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

From a Legal Standpoint Treasury Department, Office of the Secretary, mately transmitting abroad the payment instructions October 23, 1941 for such remittance, then such bank shall execute both Sections A and B of such report. No report General License No. 32, as Amended, Under Executive on Form TFR-132 shall be deemed to have been Order No. 8389, April 10, 19%0, as Amended, andfiled in compliance with this general license unless Regulations Issued Pursuant Thereto, Relating to both Sections A and B thereof have been duly exe- Transactions in Foreign Exchange, etc* cuted as herein prescribed. (4) As used in this general license the term General License No. 32 is amended to read as "household" shall mean: follows: (a) those individuals sharing a common dwelling as a family; or (1) A general license is hereby granted authoriz- (b) any individual not sharing a common dwelling remittances by any individual through any ing with others as a family. domestic bank to any individual who is a national of a blocked country and who is within any foreign E. H. FOLEY, JR., country, and any domestic bank is authorized to Acting Secretary of the Treasury. effect such remittances, provided the following terms and conditions are complied with: Treasury Department, Office of the Secretary, October 23, 1941 (a) Such remittances are made only for the necessary living expenses of the payee and his General License No. 33, as Amended, Under Executive household and do not exceed $100 in any one calen- Order No. 8389, April 10, 194,0, as Amended, and dar month to any one household, except that addi- Regulations Issued Pursuant Thereto, Relating to tional sums not exceeding $25 in any one calendar Transactions in Foreign Exchange, etc.* month may be remitted for each member of the payee's household in addition to the payee, pro- General License No. 33 is amended to read as vided that in no case shall a sum in excess of $200 follows: per calendar month be remitted to any one house- (1) A general license is hereby granted authorizhold; ing remittances by any individual through any domes- (b) Such remittances are not made from a tic bank to any individual who is a citizen of the blocked account other than from an account in a United States within any foreign country and any banking institution within the United States in domestic bank is authorized to effect such remitthe name of, or in which the beneficial interest is tances, provided the following terms and conditions held by, the payee or members of his household; are complied with: (c) If the payee is within any blocked country, the remittance may be effected only: (a) Such remittances do not exceed $500 in any one calendar month to any payee and his house- (i) By the payment of the dollar amount of hold and are made only for the necessary living the remittance to a domestic bank for credit to and traveling expenses of the payee and his a blocked account in the name of a banking household, except that an additional sum not exinstitution within such country; or ceeding $1000 may be remitted once to such payee (ii) By the acquisition of foreign exchange if such sum will be used for the purpose of enabfrom a person in the United States having a ling the payee or his household to return to the license specifically authorizing the sale of such United States; exchange. (b) Such remittances are not made from a (d) If the payee is within any foreign country blocked account other than from an account in a other than a blocked country the remittance may banking institution within the United States in be effected in the same manner that such remitthe name of, or in which the beneficial interest is tance would be effected if the payee were not a held by, the payee or members of his household. national of a blocked country. (2) Remittances herein authorized shall be effected (2) All individuals making such remittances and pursuant to the terms and conditions of (c) or (d), all domestic banks effecting such remittances shall as the case may be, under (1) of General License No. satisfy themselves that the foregoing terms and con- 32. If remittances cannot be effected pursuant to ditions are complied with. (c) under (1) of General License No. 32, domestic (3) Domestic banks through which any such rebanks are authorized to effect such remittances in mittances originate shall execute promptly Section .A any of the following three ways: of Form TFR-132 in triplicate with respect to each such remittance. When so executed, such copies of (a) By establishing or maintaining free dollar Form TFR-132 shall be forwarded promptly to the accounts; domestic bank ultimately transmitting abroad (by (b) By payment of the dollar amount of the cable or otherwise) the payment instructions for remittance to a domestic bank for credit to a such remittance and the latter bank shall, upon the blocked account in the name of a banking institureceipt thereof, execute Section B of such copies of tion within any blocked country; or Form TFR-132 and promptly file such executed re- (c) By payment of the dollar amount of the port in triplicate with the appropriate Federal Re- remittance to a domestic bank for credit to the serve Bank. If the domestic bank through which dollar account of a banking institution which is any such remittance originates is also the bank ulti- not a national of any blocked country. * Sec. 5(b), 40 Stat. 415 and 966; Sec. 2, 48 Stat. 1; 54 Stat. •Sec. 5(b), 40 Stat. 415 and 966; Sec. 2, 48 Stat. 1; 54 Stat. 179; Ex. Order 8389, April 10, 1940, as amended by Ex. Order 179 ; Ex. Order 8389, April 10, 1940, as amended by Ex. Order 8785, June 14, 1941, and Ex. Order 8832, July 26, 1941 ; Regula- 8785, June 14, 1941, and Ex. Order 8832, July 26, 1941 ; Regulations, April 10, 1940, as amended June 14, 1941, and July 26, 1941. tions, April 10, 1940, as amended June 14, 1941, and July 26, 1941. 1096 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

From a Legal Standpoint (3) All individuals making such remittances and Regulations Issued Pursuant Thereto, Relating to all domestic banks effecting such remittances shall Transactions in Foreign Exchange, etc.* satisfy themselves that the foregoing terms and General License No. 9 is amended to read as conditions are complied with. follows: (4) With respect to each remittance made pursuant to this general license, reports on Form TFR- (1) A general license is hereby granted authoriz- 132 shall be executed and filed in the manner and ing the bona fide purchase and sale of commodity form and under the conditions prescribed in General futures contracts and of evidences of ownership of License No. 32. actual commodities on an exchange or board of (5) As used in this general license the term trade within the United States by banking institu- "household" shall be deemed to have the meaning tions within the United States, for the account of prescribed in General License No. 32. nationals of any blocked country, pursuant to the instructions of such nationals, and necessary trans- E. H. FOLEY, JR., Acting Secretary of the Treasury, fers or other dealings in evidences of ownership of commodities, transfers of credit and payments between accounts in banking institutions within the Treasury Department, Office of the Secretary, United States as required in connection with such October 23, 1941 purchases or sales or because of fluctuations in the market value of the commodities covered by such General License No. 72, as Amended, Under Executive contracts or evidences of ownership, provided that: Order No. 8389, April 10, 19J>0, as Amended, and Regulations Issued Pursuant Thereto, Relating to (a) No such purchase shall be made except for Transactions in Foreign Exchange, etc.* the purpose of covering a short position taken prior to October 25, 1941, in the account of the national for whom the purchase is made; Paragraph (2) of General License No. 72 is hereby amended in the following respects: (b) No such sale shall be made except for the purpose of liquidating a long position taken prior (a) The following sentences are deleted: to October 25, 1941, in the account of the national "Domestic banks are authorized to effect the for whom the sale is made; and payments referred to in (c) and to establish (c) In the case of either purchase or sale the and maintain free dollar accounts if neces- net proceeds of the transaction are credited to a sary, and only to the extent necessary, to blocked account in the name of the national for effect such payments. Domestic banks are whose account the transaction was effected and in not authorized to establish or maintain free the banking institution within the United States dollar accounts in cases where such payments which maintains the account for which the transmay be effected in the manner prescribed in action was effected. (a) or (b) of General License No. 32, as (2) Each banking institution engaging in any amended." transaction herein authorized is required to file promptly with the appropriate Federal Reserve (b) The following sentence is substituted for the Bank monthly reports showing the details of each sentences deleted by paragraph (a) of this such transaction, including a description of the amendment: commodity futures contracts or evidences of owner- "Domestic banks shall effect the payments ship of actual commodities purchased or sold, the referred to in (c) pursuant to the terms and dates of the purchases or sales, the persons for conditions of paragraph (2) of General Liwhose account the purchases or sales were made, cense No. 33." the price at which each purchase was made, the E. H. FOLEY, JR., name of the exchange or board of trade on which Acting Secretary of the Treasury. each such transaction was effected, and the net market position in the commodity in question of Treasury Department, Office of the Secretary, the national for whose account the transaction was October 24, 1941 effected before such transaction and after such transaction. General License No. 9, as Amended, Under Executive E. H. FOLEY, JR., Order No. 8389, April 10, 19 UO, as Amended, and Acting Secretary of the Treasury. *Sec. 5(b), 40 Stat. 415 and 966; Sec. 2, 48 Stat. 1; 54 Stat. •Sec. 5(b), 40 Stat. 415 and 966; Sec. 2, 48 Stat. 1; 54 Stat. 179; Ex. Order 8389, April 10, 1940, as amended by Ex. Order 179 ; Ex. Order 8389, April 10, 1940, as amended by Ex. Order 8785, June 14, 1941, and Ex. Order 8832, July 26, 1941 ; Regula- 8785, June 14, 1941, and Ex. Order 8832, July 26, 1941 ; Regulations, April 10. 1940. as amended June 14, 1941, and July 26, 1941. tions, April 10, 1940. as amended June 14, 1941, and July 26, 1941. NOVEMBER 1941 1097 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

conomic ofi Tectetai, , and JLocaL taxation by MARRINER S. ECCLES : I T has not been my privilege heretofore to course, easy to state, but difficult to apply. speak before an audience of tax authorities. Our people—business men, labor, farmers— While I cannot hope to add to your technical are still thinking mainly in terms of the enlightenment, I am venturing to outline to profits they hope to make rather than of the you some of the broader national aspects of sacrifices which will be required of all groups taxation in relation to fiscal and monetary of our population. As yet our standard of action that, in my judgment, are of the great- living has not suffered and relatively few est importance to this country now and in dislocations have resulted. In some localities the future. In what I have to say I am, of where there have been sudden large increases course, speaking only for myself. in population due to the expansion in defense For a long time I have been interested in industry, the strain of providing adequate making fiscal policy play its proper part in a public services is severe, but in general State broad program for maintaining that orderly and local revenues are exceeding budgetary economic progress that ought to go step by expectations and relief rolls are diminishing. step with the steady growth in our human, The temptation is strong to expand Governresources and in our technical knowledge. ment services and get rid of unpopular taxes. Except during major wars, our State and Sound public policy requires that both of local governments have until recently been these temptations be resisted. Public works much more important from the financial point not directly connected with defense, no matof view than the Federal Government. Al- ter how meritorious on general grounds, though Federal revenues and expenditures should be postponed until after the emergency have greatly expanded during the past decade, has passed and we can once more afford to it is only since the beginning of the defense devote our men and materials to raising the program that Federal expenditures have be- standard of living of our citizens. I cannot gun to exceed aggregate State and local ex- agree with the superficially logical view that penditures. It is only in the current fiscal State and local taxes should be reduced in year that Federal taxes will exceed aggregate order to make it easier for taxpayers to bear State and local taxes. No one who is inter- the burden of increased Federal taxes. It is ested in a more intelligently planned fiscal natural for taxpayers to attempt to avoid a policy for the nation as a whole can fail to reduction in their standard of living, but take account of the financial problems of our taxes will not serve the essential purpose of State and local units of government, and of helping to divert resources to defense prothe vast complex of taxing jurisdictions num- duction unless consumer expenditures are bering more than 175,000. sharply reduced. The principles that should govern present State and local government should decrease policy are simple. If we are to attain the expenditures. They should not reduce existbroad objectives of our present national ing tax rates and they should devote surplus policy, expenditures for defense must absorb revenue to the repayment of debt. This would an increasingly large proportion of our na- be anti-inflationary, in harmony with governtional income. This general policy is, of mental policy. In commenting upon the regulation recently issued by the Board of Goyernors to dampen consumer instalment credit, * An address by Marriner S. Eccles, Chairman of the Board of Governors of the Federal Reserve System, before the luncheon I emphasized the importance of the repaymeeting of the National Tax Association at the University of ment of debt by individuals: Minnesota, October 14, 1941. 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. 1098 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Economic Aspects of Federal, State, and Local Taxation "When incomes are at high levels, that is the terprises, and the obligations of State and time when people should reduce their debts or get local governments. As the loans and investout of debt. Our people cannot spend their inments grew, the volume of interest, dividends, creased incomes and go into debt for more and more things today without precipitating a price rents and amortization payments also grew. inflation that would recoil ruinously upon all of Debt payments had to be maintained both in us. . . . By deferring civilian demand at this times when prices for the produce of debtor time, we can help avoid inflation, we can aid in areas were high and markets were large and defense, and we can store up a backlog of buying power that will help offset a post-defense slump." in times when prices were low and markets were restricted. Repayment of debt by State and local govern- In general, the creditor areas are also cenments is equally important at this time. ters of manufacturing that must look for a Looking ahead, however, to the post-de- market not only to their own citizens but to fense period, the problems that we will then the country as a whole. The maintenance of be facing will be the same in their essential economic balance in the country as a whole nature as those that confronted us during the requires that citizens of debtor areas have 30's and for which we succeeded in finding enough money income both to maintain inonly a partial solution until the beginning terest, amortization and other payments on of large-scale expenditures under the defense their obligations to investors in the creditor program. They are the problems of poverty areas and to maintain at a high level their in the midst of plenty; of the capacity to purchases of the output of the factories of the produce outrunning the power to purchase creditor areas. They must maintain their and consume; of millions of able-bodied and standing both as good credit risks and as skilled workers without employment; of idle good customers. This healthy state of naplants and factories. Yet, if we have the tional economic balance is continually being will, we know the way to meet those prob- upset by forces that are entirely outside the lems. We have before our eyes a conclusive control of the States or of the individual demonstration of the way in which vigorous businessman and the individual worker. The and determined action by Government can result is recurrent periods of breakdown and transform a situation of general overabund- distress, bankruptcy in debtor areas, idle ance to a situation of general scarcity within factories in creditor areas and widespread the space of a few months. unemployment and hardship in the country The general problem of finding a market as a whole. There is no essential difference for the products of farms and mines and between this situation and that resulting factories that is large enough and stable from international debts. Both are, in esenough to provide steady employment for all sence, exchange problems. By tariffs, quotas, who wish to work is one that confronts all exchange restrictions, or even by resort to the industrial countries of the modern world. more punitive steps of a military or economic In the United States this problem is com- nature, including expropriation, nations atplicated by the great size of our country and tempt to redress the situation. The Federal the diversity of our economic activities. In Government alone can remedy this condition those parts of the country that were settled among the States—and taxation is one of the earliest, wealth has accumulated and from most effective means. Through that medium the very beginning of our economic history funds which the creditor areas drain out of accumulated wealth in these areas has sought debtor areas through interest, dividends and and found an outlet for investment in the rents, as well as payments on debt, can be development of the resources of the frontier kept flowing back to sustain employment, to regions that were one by one opened up to keep mines and factories in the debtor areas settlement. Year after year this process operating and continuing to yield returns to continued. The result has been a vast aggre- the creditor areas. I realize that the creditor gation of obligations which the citizens of States complain about paying more in taxes areas that offered opportunity for investment in proportion to what they get back from owed to citizens of areas that had capital the Federal Government than do the debtor seeking investment. These obligations took States. But that is a short-sighted attitude various forms: mortgages on urban residen- which fails to comprehend that in no other tial and business properties and on farms, way can the debtor areas continue to yield the securities, both stocks and bonds, of returns to the creditor areas. I recognize mines, public utilities, and other business en- also that the Federal form of government NOVEMBER 1941 1099 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Economic Aspects of Federal, State, and Local Taxation does not adapt itself easily to a centralized to build up a reserve by increasing the taxes and coordinated attack upon problems that both for old age and unemployment, decreasmust be dealt with as national problems if ing the taxes and drawing on the reserve as they are to be dealt with at all. unemployment develops. And to insure that The problem of maintaining the standing of increased current revenues will be followed our citizens as both good credit risks and good by an appropriate flow of outpayments when customers is basically one of maintaining the they are needed to combat the deflationary national income at levels which represent forces of the post-defense period, the old-age the fullest possible utilization of our labor insurance system should be converted from supply and other economic resources. Debts its present contributory basis to a system which can be easily carried and paid off when that frankly recognizes and meets the national the national income is stable or steadily obligation to provide a minimum of support growing become insupportable when income for all of our needy aged. We should give falls. Defaults and bankruptcies used to be everyone reaching the age of 65 a minimum the accepted methods of dealing with these of 30 dollars a month, regardless of the difficulties. But such methods are crude and amount of his contribution to the system. unsatisfactory both in terms of economic Variations in payments to meet local condivalues and human values. During the de- tions should be made possible by Federal pression we developed better methods by grants matching additional payments made attacking the problem from both ends, by by the States up to 10 dollars a month, thus seeking to restore incomes and by adjusting enabling maximum payments of 50 dollars debts of farmers and home owners through a month. The Federal Government should the Farm Credit Administration and the recapture, by means of the income tax, pay- Home Owners' Loan Corporation. ments of this type in excess of amounts In the future, the most important safe- needed by the aged to bring their total inguard against the danger of a relapse into come up to a level representing a minimum the intolerable conditions of the early 30's standard of comfort. Such a revision would will be a long-run plan for public investment, do away with the present complicated set of adapted to the differing needs and conditions rules governing benefits; it would completely of our different geographical areas. So far as remove the cost of old-age pensions from the possible, this should take the form of produc- budgets of our less wealthy States; and it tive public works and expenditures not only would make the support of the aged a national to improve the basic conditions which are responsibility, as it should be. I also think responsible for keeping the standards of liv- it essential to nationalize the unemployment ing in some of our States lower than in others, insurance program extending the coverage but also to raise the standard of living par- to all workers and increasing the benefits ticularly in the lower income groups wher- both as to amount and time, increasing the ever they may be. Productive public invest- rates and providing that employees conment, which should be noncompetitive with tribute 50 per cent of the tax. private enterprise, means not only roads, If we are to be sucessful in the objective public buildings, subsidized housing, bridges, of creating a high and steadily increasing dams and irrigation projects; it also means demand for the products of industry after better education and a higher level of public the defense period, we must adopt a prohealth and nutrition. The fact that so many gressive tax system bearing heavily upon of our young men called up for military savings concentrated in creditor areas and service were shown on medical examination lightly upon the great mass of families of to be physically unfit is a shameful revelation the low income groups. This means that of our neglect, as a democracy, to deal with we must get rid of, or at least check the national health and nutrition problems. growth of the sort of taxes to which our We will also need to extend and to make States have unfortunately been forced to more uniform as between citizens living in resort more and more in recent years. I am different States the system of social security referring to the general sales taxes and the benefits. This mechanism is ideally suited taxes on gasoline, tobacco, and other articles to use as an anti-inflationary measure in of mass consumption. These have taken on times like the present and an anti-deflationary increasing importance in State tax structures measure in periods such as we may have when in recent years as a consequence of the the defense effort is over. This is the time inadequacy of the general property tax and 1100 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Economic Aspects of Federal, State, and Local Taxation the pressure to find funds to finance relief the taxpayer against the possibility that a and other welfare expenditures. Although State government, hard pressed for revenue, these taxes were enacted with the commend- may not go considerably beyond this limit able motive of preserving the solvency and and it does not eliminate the possibility that credit standing of our State and local govern- the same income or the same transfer of ments, they had an unfortunate effect upon property at death will be taxed by more than the level of activity in the economy as a one State. In the end the only thoroughwhole and were among the factors that made going cure for these difficulties lies in a drasnational recovery slow and incomplete until tic reallocation of taxing powers between the the beginning of the defense program. Their States and the Federal Government. Such effectiveness as revenue producers is largely an allocation would involve restricting the attributable to the fact that the Federal Gov- right to levy taxes on income, gifts, and beernment continued on a deficit basis through- quests wholly to the Federal Government out almost the whole of this period and with redistribution of a share of the revenue thereby provided the stimulus for expansion from these sources to the States. I know of the consumer expenditures upon which how controversial this subject is but I think these taxes were levied. we will have to face, quite frankly, the im- If we are to make progressive taxes the plication that State revenues will tend to major element of our national tax structure, consist more and more of taxes shared with however, it will not be possible to continue the Federal Government and of grants from the present system of having both the States the Federal Government, which already make and the Federal Government levy taxes on up about 14 per cent of State revenues. The corporate and individual incomes and trans- real question is how to retain the valuable fers at death. Increases in the rates of these elements of local initiative, local control over taxes sufficient to make them contribute a governmental services and adaptation of major share of total governmental revenues services to the differing needs and conditions over the long run would so intensify the of differing areas. We have had enough existing difficulties that some change in the experience with Federal grants and with present chaotic system would be unavoidable. Federal direct expenditure programs during Citizens and corporations in some jurisdic- the depression to know that this problem is tions are lightly taxed because of a fixed not insoluble. We should continue to follow policy in their States to compete for the the broad policy that has grown out of these domicile of corporations and persons of activities of leaving responsibility for initiawealth. In other States they are heavily tive as to the type of activity to be undertaxed because their States have taken the taken in the hands of State and local governleadership in the use of progressive taxes. ment, to leave, wherever possible, the detailed It has long been recognized that uniformity administration in their hands and to provide and equity can be attained only by making the for Federal supervision only to the extent total tax levied on income and on gifts and necessary to insure that funds are wisely, bequests a matter for Federal control. This prudently and honestly used. In a program might be done along the lines suggested to of the magnitude and novelty that characteryou by Mayor LaGuardia at your conference ized Federal spending for recovery, it is not last year, by the device of allowing a limited surprising that there were mistakes but the tax credit against Federal taxes for State failures as well as the successes of this period taxes of similar type. We have already of experiment provide a valuable basis for adopted this device for purposes of the Fed- the wise planning of the future. eral estate tax and the Federal unemploy- I have outlined in a general way some of ment compensation tax and we have seen the main considerations that I think should that it does give a powerful incentive to the apply in shaping taxation policy to the needs several States to enact and collect a tax of of the defense and post-defense periods. Let a particular type, when they are led to do so me add, however, that all I have said is based by the knowledge that the revenue will go upon my profound conviction that we must to the Federal Government unless they take make democracy function more effectively appropriate action. However, while this in the future than in the past—and that this device creates a presumption that a State will can be done by democratic processes and levy taxes only up to the amount of the Fed- methods, primarily by use of the Governeral tax credit allowed, it does not guarantee ment's broad functional powers of control. NOVEMBER 1941 1101 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Economic Aspects of Federal, State, and Local Taxation Fiscal and monetary action, properly used, expansion of the nation across the face of can go far towards correcting the basic causes this continent. But I deny that in a day when of economic breakdown. These over-all, func- capital is over-abundant in relation to the outtional powers—of which taxation is the most lets for its private investment it is still wise potent single instrument—need to be supple- public policy to encourage its accumulation in mented by some direct controls at all times, stagnant pools. Rather I have favored durparticularly in a time like the present when ing the decade of the 30's tax policies that we have acute shortages of strategic ma- tended to maintain the flow of purchasing terials. However, the more wisely and effec- power in the economy by forcing idle funds tively over-all controls are applied, the less back into the circulation stream. That is a will be the area in which there will be need departure from the older orthodoxy, to be for direct measures. sure, but it involves no loss of fundamental In the past, we have been slow, often too liberties. It is no threat to democratic instislow, to recognize changed conditions and to tutions. Rather, it is absolutely essential for adapt our system to them. We have too often their preservation. Similarly, I have favored tolerated poverty while we failed to recognize the appropriate accompanying monetary polithat the proper function of the democratic cies. Thus during the depression, I favored system is dynamic, not static. Too often making the supply of money abundant and what we have thought of as our rights were interest rates low in order to create an antiwrongs for great numbers of our fellow citi- deflationary climate which would be favorzens. We can—we must preserve our Con- able for recovery provided positive action stitutional guarantees—freedom of enter- were taken at the same time in the fiscal field. prise and initiative, subject only to such limi- By the same reasoning, I favor such anti-intations and restraints as are necessary to pro- flationary fiscal and monetary policies as are tect the public interest. But we must recog- possible at this time, when the economy has nize that the right to work must be coupled moved rapidly towards full production and with the opportunity to work. Freedom of employment, under the stimulus of large despeech, freedom to worship as we will, free- fense expenditures. dom of the press, all of our cherished liberties In the day of capital scarcity, in the day are of cold comfort to the destitute. There is when the gold standard prevailed for most of no reason, except willful blindness, why we the world, even though it was never the uncannot make our system function far better managed mechanism pictured by its most arthan it ever has before by guaranteeing that dent champions, there may have been logic no willing, able-bodied worker shall lack for in relegating taxation to the role of revenue employment and that the aged shall not be in only, and in putting some reliance upon the abject want. interest rate as a regulator of economic ex- I grow impatient—for events move swiftly cesses. But the late 20's disabused our minds in the world today—with those in your field of the notion that a high interest rate could and mine who say that fiscal and monetary curb speculation. The early 30's should have policies suitable for the past are necessarily taught us that a negative fiscal policy was appropriate today. It is surprising how both economically and politically untenable. many who should know better, who should The later 30's should have demonstrated to us have learned from the experience of the past convincingly that a more positive policy, even decade, still hold that taxation should be though halting and hampered by widespread based exclusively on considerations of the resistance, can have the most powerful effect need for raising revenue, without regard for in economic restoration. And the present the social and economic necessities that only period is giving us irrefutable proof of the the tax instrument can be adapted to meet, degree to which a vastly expanded, positive if intelligently used by Government. policy called forth by national peril rather I recognize fully that in the day when we than by deliberate choice, can swiftly transhad a scarcity of capital, when new capital form the economy from underemployment to accumulations more or less automatically boom conditions. Unhappily, the boom conflowed into new production, it was wise publicditions are largely concentrated in the induspolicy to have taxation contribute so far as trial sectors of the economy in the production possible to capital formation. All that we of the things of war instead of the things of could amass at home and billions more that peace that improve our standards of living. we borrowed from abroad went into the rapid The logic of having taxation play a passive, 1102 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Economic Aspects of Federal, State, and Local Taxation neutral role in times past, and of having tation upon necessary democratic action, to monetary policy responsive to international ignore. gold movements, rather than subject to na- It is not necessary, before this audience, to tional direction and control, is no longer valid stress the point that there can be no conin the world of today. Rather, the respective sistency or continuity of national economic spheres of fiscal and monetary policy are re- policy, it can have no adequate flexibility, if versed. Fiscal policy has assumed the great- it must be exercised in conflict rather than in est importance as a democratic instrument of harmony with the States. Manifestly if the economic action, while monetary policy as- Federal Government is to be effective in using its powers to dampen inflationary tendencies, sumes a secondary place. Both must be co- State policies must, on the whole, be aimed in ordinated by deliberate action. the same direction. In the post-defense era, Even a cursory review of the economic his- Federal action to offset a slump will be intory of the last dozen years indicates not only effective to the extent that the States are not that democratic nations must and can withprepared to act in concert with Government out sacrifice of any fundamental principles policy. use the functional Government controls of In brief, monetary policy should be the fiscal and monetary action, but that no other servant, not the master, in the economy. We rational choice is open to those who profess should rely heavily upon fiscal policy, its to be in favor of preserving our institutions. timing and application, as a stabilizing factor The question is no longer whether such funcand as a motivating force without which tional powers should be turned deliberately monetary policy alone is ineffective. We to helping us solve our economic problems, should utilize and coordinate these over-all but whether we can so organize and coordiinstruments of public policy, not only because nate our democratic processes, that the necesof their demonstrated effectiveness, but besary flexibility and administrative discretion cause they are the only logical alternatives to will be afforded to achieve the best results. a no longer possible laissez faire, on the one I am aware of the difficulties. They are inhand, and a regimented, policed economy, of herent in established legislative processes, fascist character, on the other. There is no and the division of powers. They are present, reason why we cannot learn to use them more particularly, in the relationship between the intelligently in the future than we have in the Federal Government and the States. past, recognizing always that these and other We have not made much progress towards functional controls are at best supplemental simplification so far, but the time has come to the main driving force of private enterwhen we can no longer continue to tolerate prise. There is no reason why democratic this chaos. For the fact is that with the in- processes cannot be adapted, and every reacreasing assumption by modern governments son why they should be adapted to using of social and economic responsibilities, in the these instruments of economic influence to light of the increasingly important role that the fullest, not only in the defense period governments play in affecting economic con- but in the future when the economic probditions, what may have been an endurable lems of a world at peace will ironically be conflict in the highly important fields of tax- even more difficult to deal with than the ecoation is now too serious, too much of a limi- nomic problems of a world at war. NOVEMBER 1941 1103 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

rtont the Jsoatd 5 6.otte5y2ondence Questions of general interest, relating to money and banking, are answered in this section of the BULLETIN. to I ax flank QUESTION count which reflects the whole volume of his Would it not be feasible to impose a Federal tax business transactions rather than his net on the deposit of funds in bank checking accounts? profits. His deposit tax might exceed that Such a tax, of one or two cents per hundred dollars, could be charged to depositors accounts monthly and of an individual who is much better off but remitted by the banks to the Treasury. The virtue whose only deposits consist of salary or diviof this tax is that it would be relatively inexpensive to administer, easy to collect and would yield a sub- dend checks. An equitable tax would bear stantial revenue without delay. more heavily on the latter than on the former. ANSWER If the tax is passed on in the form of THE tax proposal which you outline has increased prices of the commodities produced the advantage of administrative sim- or services rendered by the taxpayers, it beplicity, which is of great importance at a comes similar to a general tax on commoditime when tax laws are becoming increas- ties. Such a tax is undesirable because it ingly difficult to understand and to admin- bears on everyone in proportion to his conister. sumption, a result that is not consistent with In our opinion, however, your proposal is the principle that the well-to-do should connot in accord with one of the fundamental tribute a larger share of their income than principles of taxation in a democracy, namely, those in less comfortable circumstances. that taxes should be imposed in accordance An additional technical consideration is with ability to pay. Under your proposal the probability that some depositors could deposit holders would be taxed on the number easily evade the tax by making payments in of dollars deposited by them. A small busi- currency and by means of re-endorsed checks ness man, for instance, who earns a moderate passing from person to person without being income may have a very active deposit ac- deposited. £xtant to Which. JQcletve Hank* (lan 7lnance £xpenctitut<25 QUESTION assist them in financing defense activities. To what extent can the Federal Reserve Banks However, at the present time member banks finance defense expenditures of producers or of the altogether have several billion dollars of ex- Government? cess reserves, and few of them have occasion ANSWER to apply to the Reserve Banks for loans. THE Federal Reserve Banks are author- Under the terms of Section 13 (b) of the ized to make short-term loans to member Federal Reserve Act Federal Reserve Banks banks, and by furnishing member banks with may make advances with maturities of not additional funds the Reserve Banks can more than five years for the purpose of pro- 1104 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

From the Board's Correspondence viding established commercial and industrial ment. However, they may buy in the open businesses with working capital. Such ad- market without regard to maturities direct vances may be made to or in participation obligations of the Government and obligawith member banks and other financing in- tions of Government agencies fully guaranstitutions and, in exceptional circumstances, teed as to principal and interest by the United direct to industrial concerns when they are States. Open market purchases of Governunable to obtain the requisite financial as- ment securities by the Federal Reserve Banks sistance from the usual sources on a reason- are undertaken with the view of influencing able basis. the availability or the cost to member banks The Federal Reserve Banks are not author- of reserve funds and are thus governed by ized to extend credit direct to the Govern- their effect on the general credit situation. Admissions of State Banks to Membership in the Federal Missouri Reserve System St. Charles—The Union Savings Bank of St. Charles The following State banks were admitted New York to membership in the Federal Reserve Sys- Rensselaer—Rensselaer County Bank and Trust tem during the period September 16, 1941, to Company Rye—Rye Trust Company October 15, 1941, inclusive. Williamson—The State Bank of Williamson District of Columbia Ohio Washington—The Munsey Trust Company Ada—The Liberty Bank Indiana West Virginia Bremen—Bremen State Bank Parker—The Parker Banking Company Wardensville—The Capon Valley Bank NOVEMBER 1941 1105 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Aiamlrct Sank £atnin$t Titlt 4/alft of} 1941 f TOTAL earnings of member banks were any half-year period since the banking holilarger in the first six months of 1941 than day, while recoveries, profits on securities in any half-year period since the banking sold, etc. were less than in any half-year holiday, but since expenses also were larger period since 1934 except the second half of there was no substantial increase in net cur-1937, when profits on securities sold were rent earnings. As shown in the following relatively small. Although losses and depretable, net profits (after recoveries, charge- ciation have exceeded recoveries, profits on off s, etc.) totaled more than in any other half- securities sold, etc. in most of the recent year period since the end of 1936; they were periods, the margin has narrowed since 1939 at an annual rate of 6.9 per cent on total with the result that a greater proportion of capital accounts, as compared with similar net current earnings has been carried annual rates of 5.8 per cent in the first half through to net profits. of 1940, 7.0 per cent in the first half of 1939, Notwithstanding the increase in net profits, and 5.4 per cent in the first half of 1938. cash dividends declared in the first half of The amount of interest and discount on the current year were substantially less than loans has increased in each of the past four in the previous six months; they were at an half-year periods; this is attributable to the annual rate of 8.6 per cent on capital stock larger volume of loans, as the average rate of and 3.5 per cent on total capital accounts, income on loans has declined slightly. In- approximately the same as in the first half of terest and dividends on securities have been 1940. relatively stable since the beginning of 1940, For detail figures of earnings, expenses, at a somewhat lower level than in previous etc., in the first half of 1941 and the second years, reflecting lower rates of return. half of 1940, turn to page 1186 of this Losses and depreciation were less than in BULLETIN. MEMBER BANK EARNINGS, BY HALF-YEAR PERIODS, JANUARY 1936—JUNE 1941 [Amounts in millions of dollars! 1936 1937 1938 1939 1941 Item First Second First Second First Second First Second First Second First half- half- half- half- half- half- half- half- half- half- halfyear year year year year year year year year year year Earnings—total 617 654 652 669 631 644 633 662 649 674 681 Interest and discount on loans 253 260 268 285 269 274 272 288 290 305 318 Interest and dividends on securities.. 235 252 244 237 224 225 223 221 214 217 215 Service charges on deposit accounts.. 19 20 22 23 25 26 27 28 29 30 32 All other earnings ... 110 122 118 124 113 119 111 125 116 122 116 Expenses—total 430 442 449 453 448 443 446 448 455 466 475 Salaries and wages 172 180 181 191 187 193 190 198 195 205 204 Interest on time deposits 89 88 88 88 83 82 77 75 73 71 All other expenses 169 174 180 174 167 174 173 185 188 200 Net current earnings 187 212 203 216 183 201 187 214 194 206 Recoveries, profits on securities, sold, etc. 253 254 158 97 137 142 191 135 143 159 129 Losses and depreciation 216 225 166 172 175 222 193 175 180 137 187 Net profits 224 241 195 141 145 121 156 162 187 198 191 Cash dividends declared1 95 103 100 101 99 99 104 100 110 101 104 Number of officer 31,825 31,980 32,589 32,728 33,527 33,176 34,386 34,172 35,002 35,369 36,085 Number of employees 147,823 149,422 155,466 155,139 154,564 154,039 156,710 158,137 162,307 163,783 173,231 Number of banks2 6,400 6,376 6,357 6,341 6,338 6,338 6,330 6,362 6,398 6,556 1 Includes interest on capital notes and debentures. 2 At end of period. 1106 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

-@nnual JQepott <yk the Hank Untet national J>ettUment5 The Eleventh Annual Report of the Bank Among developments outside Europe infor International Settlements, covering the terest attaches to the immobilisation in the year ending March SI, 19hi, was presented United States of the assets of a number of by Mr. Thomas H. McKittrick, President of European countries which were occupied in the Bank, at its annual general meeting at the course of the war or otherwise changed Basle on June 9, 194.1. Selections from the their political status. Fear of an extension Report, with a minimum of textual changes, of these measures provoked fairly extensive are given herewith: capital movements: dollars" to "the value of some 850 million Swiss francs were, for instance, sold by private investors to the Swiss EXCHANGE RATES, FOREIGN TRADE, National Bank between the middle of June AND PRICE MOVEMENTS 1940 and the end of March 1941. In Latin Exchange rates.—The main characteristic American countries export difficulties conof foreign exchange conditions in 1940 was tinue to limit the normal supply of foreign exa further extension of official regulations, change and have necessitated stricter control generally combined with detailed supervision measures. In a few instances (Bolivia, Peru, of foreign trade. Steps were taken to stop Venezuela) they have led to further deprecialeakages in the existing exchange controls; tion. The exchange position of the Argentine, the remaining markets for "free rates" be- Brazil, and Mexico has been strengthened came narrower as foreign payments—com- by a considerable influx of money from mercial and others—were forced into official abroad, partly refugee funds and partly channels. Alterations in exchange values capital for new investments, while a numwere the result not so much of market forces ber of Latin American countries were asas of deliberate official action, often under- sisted by credits obtained from the Exporttaken in connection with commercial negoti- Import Bank and the Exchange Stabilizaations. In the Danubian and Balkan regions tion Fund in the United States. Finally, the lack of uniformity in the quotations of in the Far East the continuation of hosdifferent currencies, the result of a compli- tilities has subjected the exchanges to furcated system of premiums and varying pro- ther strain: in the autumn of 1940 a strict visions for surrender of foreign exchange, control was imposed on the exchange of was largely eliminated. In areas occupied by goods and the transfer of money between Germany rates 'of exchange were fixed more the different countries forming the yen area or less in conformity with the official quota- (Japan, Manchukuo, and North China) ; tions previously in force. In the United King- in December 1940 a new central bank was dom and other countries of the British Em- established in Nanking with its own curpire the exchange regulations were reinforced rency, competing in Shanghai and other and further agreements concluded with for- areas with the Chungking yuan (the cureign exchange centres; as a result the quota- rency of the Chiang Kai-Chek Governtion of free sterling, which in May 1940 had ment) ; the latter, after a depreciation of 25 fallen 20 per cent below the official rate, re- per cent in the first four months of 1940, recovered in the autumn the ground which had mained relatively stable up to the end of the been lost. year. Between the Yokohama Specie Bank and the Bank of Java an agreement, valid for NOTE: About one-fourth of the material given in the full Report is republished here. The complete Report, available in Eng- one year but terminable at three months lish, includes in addition an Introduction and a Conclusion, chap- notice, came into force on January 1,1941, unters on "Production and Movements of Gold" and "International Capital Movements", and a chapter recording the current activi- der which these banks make advances in their ties of the Bank. In making selections from the other chapters, emphasis has been given to material relating to developments in own currency to ensure prompt payments Continental Europe. The Report also deals broadly with economic to exporters, any balance being settled from and financial developments in the United States, Latin America, and the Far East. For earlier Reports, see BULLETIN for Octo- time to time by payments in U. S. dollars. In ber 1940, September 1939, June 1938, etc. NOVEMBER 1941 1107 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Annual Report of the Bank for International Settlements several European clearing agreements pro- mark ; and between the different countries in visions have also been included for advances the Danubian and Balkan regions a variety by central banks to avoid delay in payments of clearing rates were in force, with cross through the clearings—examples of the in- rates that did not harmonise. creased importance of official intervention After the war had started in 1939 a series under conditions which exclude resort to the of developments set in which affected the exordinary sources of banking credit. change situation. Trade with most of the so- The present preponderance of the Reichs- called free-exchange countries became gradmark in the currency structure of the Euro- ually more difficult; commodity prices were pean continent is due to the increased relative rising in the Danubian and Balkan regions; importance of the German market for the the harvest in 1940 was generally a poor one trade of many countries after the cutting-off and, for other reasons also, exports to Gerof their overseas commercial relations. In many tended to decline. On the other hand, the area within the German barrier more imports from Germany were badly needed; than one-half of the foreign trade is with within a short time the clearing balances Germany and practically all payments are began to move in favour of Germany. By made through clearings. Steps have been negotiations which were pursued in the latter taken in Berlin to facilitate transactions by half of 1940 new arrangements affecting the a development towards a multilateral clear- exchange rates were entered into between ing system. In this connection the arrange- Germany, on the one hand, and Bulgaria, ments entered into with countries in the Greece, Hungary, Roumania, and Yugoslavia Danubian and Balkan regions are of particu- individually, on the other. The valuation of lar interest. the Reichsmark is now at a uniform level in Especially after 1933 the intensification of relation to the gold (or dollar) value of the trade relations with countries in central and various currencies in the Danubian and Balsouth-eastern Europe became an objective of kan regions. German commercial policy, partly because In the areas occupied by Germany measures these countries could deliver agricultural arid have been taken to determine the rate of the other primary products in exchange for in- respective currencies in relation to the official dustrial articles and partly because trade quotation of the Reichsmark. In March 1939, with these areas could presumably be main- when the rate between the Czecho-Slovak tained even in the event of a war. Since the crown and the Reichsmark was fixed at 10 world-wide depression made it difficult for the koruny = 1 Reichsmark (instead of the Danubian and Balkan countries to sell their previous quotation of 11.62 koruny = 1 agricultural products in western Europe, Reichsmark), it was decided to allow the these countries were naturally interested in crown to retain the old rates in relation to the possibilities of exporting at comparatively other foreign currencies (on the basis of remunerative prices to the German market. 11.73 koruny = 1 Reichsmark) in order not In their clearing agreements with Germany to hamper exports from the -Protectorate of the old par rates of exchange were at first Bohemia and Moravia. This meant, for inapplied. It was soon found that exports to stance, that the dollar continued to be quoted Germany tended to exceed imports, leaving at 29.25 koruny, instead of 25 koruny, as the countries from time to time with a credit would have been the case if the dollar rate balance which in some instances affected the were calculated via the Reichsmark. After rates of the Reichsmark quoted in the free eighteen months, however, this disparity was market. Since the Danubian and Balkan ended upon the abolition of the customs countries were in need of free "devisen" to frontier between Germany and the Protecpay for their imports of overseas raw mate- torate as from October 1, 1940: in relation rials (textiles, colonial products, etc.) and to other currencies than the Reichsmark the to meet the service of their foreign debts, exchange value of the Protectorate currency they allowed premiums on the purchase and was raised by 17 per cent. sale of free exchange in order to stimulate In the territories of Poland which were exports payable in such exchange. In that incorporated into Germany, as also in the way the rates applied to such currencies as Governor-Generalship, the rate of conversion dollars, sterling, and Swiss francs did not cor- between the Reichsmark and the zloty was respond to the rates applied to the Reichs- fixed at 1 Reichsmark = 2 zloty. On April 1108 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Annual Report of the Bank for International Settlements 8, 1940, the "Reichskreditkassen", opened management of the Reichskreditkassen was at the time of the occupation to provide means authorised to issue Reichskreditkassenscheine of payment for the German troops and emer- in denominations of 50, 20, 5, 2, and 1 Reichsgency currency and credit facilities, were mark as well as 50 Reichspf ennige and coins closed and a new Bank of Issue for the Gov- of 10 and 5 Reichspf ennige against cover ernor-Generalship with its head office in chiefly in the form of loans to the Reich, for Cracow began operations, the old notes of which a maximum of 3 milliard Reichsmark the Bank Polski being exchanged for the was fixed. Total issues do not seem to have notes of the new bank at par. The offices exceeded 1.7 milliard Reichsmark and it was of the Reichskreditkassen were taken over semi-officially stated in January 1941 that as branches of the new bank; the Reichs- the circulation of Reichskreditkassenscheine kreditkassenscheine (the amount of which had declined by one-half since the autumn did not exceed 45 million Reichsmark) were of 1940. The issue of coins has not been of withdrawn and replaced by zloty (or by any practical importance. Reichsbank notes in the incorporated terri- While Reichskreditkassenscheine were istories). German currency is no longer legal sued to the German troops in Norway and tender in the Governor-Generalship, which Denmark and these notes were given the is connected with the German monetary sys- quality of legal tender, no Reichskreditkassen tem through a clearing arrangement. were actually opened in these two countries The rates fixed for the territories occupied since in them the credit systems continued by Germany in the spring and summer of to function with only slight interruption, 1940 may be seen from the following table: and early arrangements were made with the central banks for Reichskreditkassenscheine already issued to be exchanged and for the RATE IN NATIONAL CURRENCY FOR 1 REICHSMARK occupying authorities to be supplied with Rates of Rates for Rates of the necessary means of payment against Country May 9, 1940 Reiehskredit-April 1,1941 crediting of Reichsmark to the accounts of Berlin T.T. kassenscheineBerlin T.T. these countries with the Reichsbank. Norway (crowns) 1.76 i 1.67 1.76 In Holland, Belgium, and France Reichs- Denmark (crowns) 2.07 i 2.00 2.07 kreditkassen were opened in May 1940 by 0.75 0.67 0.75 Holland (florins) 2 0.75 the German authorities, but in each of these Belgium (belgas) 2.39 8 2 2 . . 0 5 0 0 2.50 countries arrangements were soon made to 9.57 8.00 * 10. 00provide the German troops with the national Luxemburg (Luxemburg frani MO.OO 17.84 20.00 20.00 currency. In Holland the Reichskreditkassen France (French francs) were closed by the middle of July, with the 1 Rates first fixed; afterwards the rates were adapted to the official exception of the office in Amsterdam, which rates in Berlin. 2 Altered to this rate on July 17, 1940, and slightly readjusted on April was retained for the task of liquidation and 23, 1941. 3 Rates altered on July 22, 1940, to the rate of conversion fixed in the liaison. In Belgium the conditions were German-Belgian payments agreement of July 10, 1940. 4 Last rate quoted on March 5, 1941. more complicated since in May 1940 the direc- 6 Altered to this rate on July 22, 1940, in accordance with new Belgian tion of National Bank of Belgium had moved rate. abroad; a new Bank of Issue was established, To provide the German troops with means which came into being on July 15, 1940. of payment the method of issuing Reichsmark Since, however, the direction of the National notes called Reichskreditkassenscheine was Bank at that time returned to Brussels, it again employed in Norway, Denmark, Hol- was decided that the new Bank of Issue should land, Belgium, Luxemburg, and France. employ the administration and the notes of Reichskreditkassenscheine became the cash the National Bank. The Reichskreditkassen of the German troops abroad, and their im- were maintained as credit institutions for the port or use in Germany itself was forbidden. German military administration but the issue In fact, the employment of Reichskredit- of new Reichskreditkassenscheine was on a kassenscheine as an ad hoc currency made very limited scale. In France the activity it possible to avoid the issue of Reichsmark of the Reichskreditkassen was likewise renotes, which would at least temporarily have stricted upon the conclusion of an agreement swollen the note circulation of the Reichs- with the Bank of France after the armistice bank. Under a decree of May 3, modified of June 22, 1940. by a decree of May 15, 1940, the central In Holland exchange restrictions had been NOVEMBER 1941 1109 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Annual Report of the Bank for International Settlements introduced on May 10, 1940, and on June 24, Reichsmark = 100 French francs (1 Reich- 1940, a comprehensive system of exchange mark = 20 French francs) was originally control was imposed according to the German fixed by the occupying authorities as the rate model. Private holdings of gold and foreign for the Reichskreditkassenscheine; it was exchange were to be offered to the Neder- afterwards maintained in the clearing arlandsche Bank, which by the end of Novem- rangement concluded in the middle of Nober 1940 had acquired 38 million florins in vember 1940 between the Reich (including gold from private hoards. In relation to Bohemia and Moravia), on the one hand, and Germany the exchange restrictions were the occupied and unoccupied parts of France gradually made less rigid. From November as well as the French colonies, protectorates, 1, 1940, permission was given to transfer and mandated territories, on the other. freely an amount of 5,000 Reichsmark per (ii) After the armistice the agreements month per person; in the early months of 1941 concluded in September 1939, by which the increased capital transfers were permitted rate of 176.625 French francs = 1 pound sterbut a special tax of 70 per cent on immediate ling was to be maintained with sterling, repatriations of capital was imposed to check lapsed, but the corresponding rate of 43.80 a too voluminous inward movement of funds. French francs = 1 dollar, was maintained. Then, from April 1,1941, full freedom of pay- This dollar rate corresponds to the former ments was established between Holland and rates of 17.51 French francs for the Reichs- Germany, including the right to bring notes mark and about 10.15 French francs for the and other means of payment from one country Swiss franc. to the other. The Dutch-German clearing (iii) In the clearing agreement concluded ceased to operate as far as payments between between France and Switzerland on October the two countries were concerned but re- 23, 1940, however, the rate to be applied to mained in force with regard to payments be- all commercial payments was rounded off to tween Holland and third countries. The rate 10 French francs = 1 Swiss franc. For reaof 100 florins = 132.70 Reichsmark was made sons of convenience, this rate was subseapplicable also to notes and coins, which are quently adopted by the French Exchange exchangeable at the offices of the central Office for all transactions (commercial and banks and a number of other institutions. non-commercial) which are made neither in The freedom from restrictions extends to the dollars nor in Reichsmark nor via the Reichstransfer of capital, but the "blocked mark mark. These rates correspond theoretically tax" which had been imposed by the Dutch (no arbitrage being possible) to a rate of Government on repatriations of capital in- 43.11 French francs for the dollar and 17.25 vestments in Germany was maintained, French francs for the Reichsmark. though with certain alleviations. This tax, (iv) In addition, there is a "free rate" which is intended to compensate for the gain quoted outside France (in Zurich at the presaccruing to individual owners from the reent time) for bank transfers on "foreign acturn of capital invested in Germany and to counts" opened with French banks in the prevent a sudden and wholesale liquidation name of persons residing abroad. of such investments, was fixed at 60 per cent (v) Another rate, subject to considerable for transfers up to the end of 1941, declining fluctuation, is quoted for French bank-notes, thereafter. as in the case of other countries which have In Belgium a clearing arrangement of July prohibited or limited the reimportation of 10, 1940, replaced the previous payments their notes. It is not permissible to take agreement between Belgium and Germany. more than 1,000 French francs into France The new Bank of Issue, which acts as payon each journey. ments institution, has obtained from the Bel- In actual practice the situation is, however, gian Ministry of Finance a guarantee to the less complicated than might appear from the amount of 1,000 million Belgian francs in different rates indicated above. Commercial order to be in a position to pay promptly transactions take place either against or via clearing claims of Belgian exporters to Gerthe Reichsmark at the rate of 20 French many. francs = 1 Reichsmark or against the Swiss In France the following rates govern the franc at the rate of 10 French francs = 1 exchange value of the French franc: Swiss franc (corresponding to 17.25 French (i) In relation to Germany the rate of 5 francs = 1 Reichsmark). 1110 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Annual Report of the Bank for International Settlements The clearing arrangements entered into by The exchange restrictions which had been the Governor-Generalship of Poland, Nor- introduced in Sweden during February 1940 way, Holland, and Belgium provide for pay- were at first designed mainly to control capiments through accounts kept at the German tal movements but, as conditions turned Clearing Institute (Verrechnungskasse) in more difficult in the spring, they were also Berlin; and these provisions apply both to the used as a means of import control. Later clearings between these four countries in in the year, when the exchange market betheir relations with each other and to the came easier, it was possible somewhat to clearings between any one of them and other soften the restrictions. While in the first countries in Europe. In fact the German four months of 1940 the combined hold- Clearing Institute enters as creditor and ings of gold and foreign exchange of the debtor in relation to the clearing institutes of Riksbank and the commercial banks fell by the countries concerned. The centralisation about 320 million Swedish kronor (mainly of the accounts for these four countries makes because of payments for excess imports), the it possible to arrange more easily for a settle- movement for the remainder of the year was ment of balances on a multilateral basis. In in the opposite direction, the combined holdpractice permission must be obtained for a ings rising by about 120 million Swedish surplus balance on one account to be utilised kronor. In this latter period from May to for payments on some other account and, December 1940 the Riksbank acquired 255 generally, the total of the amount which any million Swedish kronor of foreign exchange one of these countries can utilise, is fixed in while the commercial banks reduced their advance for a certain period, usually in con- holdings by 133 million Swedish kronor. This nection with commercial agreements. reduction, which was most marked in the late Between other countries in Europe than autumn, would seem to have been due" to fears that sales of Swedish assets in the United the four just mentioned direct clearings are States would be made subject to licence and in force without, as a rule, any provisions for possibly also that the Swedish krona would settlement of balances in relation to third be raised in value in relation to the dollar. countries. Since, however, Germany holds a During the year there was, however, very predominant position in the trade of the conlittle change in the quotations for any of the tinent of Europe, the accounts with Germany leading currencies. may afford the possibility of arranging for settlements between a surplus on one account The year 1940 in Switzerland was characand a deficit on another; or Germany may, terised by unusually strong movements on the within limits, allow a surplus in Reichsmark foreign exchange market. During the first to be utilised for payments to third countries five and a half months the National Bank, to- (as in the German-Bulgarian clearing). In gether with the Exchange Equalisation Fund, the bilateral arrangements which are being furnished the market with dollars to an negotiated increased attention is given to the equivalent of nearly 500 million Swiss francs. possibilities of settlement in relation to third In the main these dollars were required to parties. pay for a heavy excess of imports and to sup- The official rate of the lira, which had ply the means of payment for future imports, been reduced in September 1939 by about 4 but in part they served to meet withdrawals per cent from 5.2625 to 5.05 dollars = 100 of funds owned by foreigners and, as the lire, has been maintained at the latter rate political situation became more unfavourable, except for a temporary deviation to 5.032 dol- to provide for the acquisition of dollar holdlars in the middle of 1940, but at the end ings on private account. of May 1941 it was raised again to 5.2625 dol- In the middle of June, when France opened lars. This raising of the lira rate on the negotiations with Germany for an armistice, dollar was followed by corresponding adjust- funds suddenly began to return to the Swiss ments in the rates of a number of other cur- market and the inward movement continued rencies (including the Reichsmark, the Swiss almost without interruption up to the end of franc, and the Swedish krona), the result the year, by which time the National Bank being a greater uniformity in the system of had added nearly 650 million Swiss francs to rates and cross rates in relation to the its foreign exchange holdings. At first this lira and thus also in the continental exchange movement was due principally to the sale of relations generally. dollars by commercial and industrial firms NOVEMBER 1941 1111 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Annual Report of the Bank for International Settlements which no longer needed that currency for and whenever the francs paid for the gold payments abroad since imports from overseas were to be used for settlement of commercial countries had been largely cut off. Towards and other operations useful to the country. the end of the year there was another and Foreign trade.—No statistics have been more important reason for the massive re- published regarding the foreign trade of Gerpatriation of funds, viz., the fear that Swiss many since the war began. In a speech made assets in the United States would be placed by a Director of the German Reichsbank and under the regime of licences by the American published in December 1940 it was, however, Government. In the first quarter of 1941 dol-explained that at the beginning of the war lar funds still continued to be liquidated, the there was naturally a sharp decline in the National Bapk acquiring the countervalue of foreign turnover, since more than one-half about 200 million Swiss francs. of Germany's pre-war imports came from When it had to provide dollars for the overseas countries and from England and market in the spring of 1940, the National France. But, thanks to an intensification of Bank, in agreement with the Federal De- trade with European countries, the volume partment for Finance and Customs, asked of German foreign trade was gradually the banks on May 10, 1940, to limit their brought back to the pre-war level as regards supplies of foreign exchange for industry both exports and imports. Germany's forand trade to the amounts needed for pay- eign trade balance at the beginning of the ments of imports and foreign services, and war was at first active; later on, heavy Gerin particular to abstain from the sale of man purchases in all the accessible European exchange for foreign investments. Thus an countries led to an import surplus, although informal arrangement took the place of of- the German economy was able to maintain ficial restrictions. When later on in the year a considerable production for export in addithe National Bank had to acquire large tion to its work for the armed forces. In amounts of dollars, it adopted the policy of the latter half of 1940 German imports from demanding information as to the origin of the Holland, Belgium, and France rose considerforeign exchange offered to it. The Bank was ably, substantial stocks of raw materials not interested in receiving unstable foreign which these countries had accumulated being funds and it was anxious to prevent blocked partly transferred to Germany. The imdollars from being liquidated through the provement in Germany's trade position was Swiss market but it accepted all the exchange helped by the well-maintained foreign trade resulting from Swiss exports or representing of the Protectorate of Bohemia and Moravia, repatriation of funds in Swiss ownership. which entered into a customs union with Notwithstanding the large increase in the Na- Germany as from October 1, 1940. tional Bank's exchange holdings the arrange- Just before the war 65 per cent of Germent limiting the outflow of funds was main- many's exports went to Continental Europe, tained in order to keep the country's capital from which Germany took 55 per cent of her at the service of the Swiss economy. imports. Trade with the U. S. S. R. was In the first five and a half months of the negligible (V2 per cent of the total turnover). year the dollar rate remained unchanged at Besides the recovery of the Russian trade in 4.45% Swiss francs = 1 dollar. In response 1940, a notable increase occurred in trade to the subsequent inflow of funds the rate with Italy. Increased coal deliveries to Italy gradually went to 4.30% Swiss francs, where should be specially mentioned. Of the 12 to it was held from October 1940 to April 1941 13 million tons of coal annually imported except for some minor fluctuations in the last into Italy about 65 per cent was obtained in two months of 1940. The improvement in the 1937 from Germany (principally by sea via dollar value of the Swiss franc affected the Hamburg) and 16 per cent from the United quotations of other currencies also; the rate Kingdom. In 1940 British shipments were fixed in the Swiss-German clearing was re- wholly replaced by deliveries from Germany. duced in October 1940 from 175.44 to 173.01 In February 1941 an agreement was con- Swiss francs = 100 Reichsmarks. On the cluded between Germany and Italy providing other hand, the National Bank has kept its for an exchange of goods to the value of 1 purchase price of gold unaltered at 4,869.8 milliard Reichsmark annually; at the same Swiss francs per kilogram and has bought time it was agreed that for the duration of gold at that price from foreign central banks the war all deliveries of military importance 1112 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Annual Report of the Bank for International Settlements should be continued without regard to equili- balance", the attitude thereafter may be indibrium in the balance of payments or the posi- cated by the formula: "imports precede extion of the clearing accounts. ports". Instead of import restrictions of In Italy also, regular publication of foreign various kinds, export quotas and export trade returns has been discontinued since the prohibitions have been imposed and the acbeginning of the war, but the global figures cumulation of free "devisen" is no longer refor 1940 have been disclosed. According to garded as a major objective. these figures imports increased by some 2.9 In the early months of 1940 attempts were milliard to 12.9 milliard lire, about 30 per still made to import raw materials from overcent, this being the highest level reached seas markets. Traffic in the Mediterranean since 1931 (except for the year 1937, when was, however, much hampered from the very the necessity of replenishing stocks after the beginning of hostilities in Europe; it became Abyssinian campaign swelled imports to a extremely difficult after the entry of Italy record figure of 13.6 milliard lire). Exports into the war and well-nigh impossible after in 1940 amounted to 9.2 milliard lire, com- the outbreak of the Italo-Greek war. Among pared with 8-5 milliard in the previous year, the raw materials which threatened to bethus increasing by 9 per cent. In the whole come particularly scarce textile fibres were period 1931-40 the highest exports were at- of the greatest importance, the Danubian and tained in 1931 with a figure of 10 milliard Balkan countries having developed their own lire, i. e., before the great depression had textile industries. A substitute for imported made its full effects felt in Italy. The pas- cotton was found to some extent in unexsive trade balance rose from 1.5 milliard in pectedly large deliveries of "Ersatz-Fiber" 1939 to 3.7 milliard lire in 1940, which is be- from Germany and Italy. Mention should low the previous record of 5.7 milliard in also be made of the increase in the local 1937. It is officially stated that the deficit growth of cotton in Bulgaria, Greece, and in the trade balance was largely due to the Turkey. payment of higher prices for imported goods The authorities in Switzerland no longer and to the necessity of accumulating stocks. publish details regarding the composition of It is added that in the balance of payments foreign trade or its distribution among difthe deficit on merchandise account was ferent countries, but the global figures of largely offset by certain active items, such values and quantities of imports and exports as shipping freights (during the first five give some indication of the general tenmonths of the year), and by a reduction in dencies. In the development of foreign trade certain passive items, such as the service of since the war began it is possible to distin- Italian foreign loans, the transfer of which guish two different phases. From September has been suspended since June 1940. 1939 to the spring of 1940 successful efforts Although the overseas trade of Italy came were made to increase imports in order to acpractically to a standstill upon her entry into cumulate stocks, especially of raw materials. the war, the loss thus sustained was partly Then came a sudden decline in the summer of 1940, and, although there was a certain recounterbalanced by an increase in the traffic covery in the autumn, the quantities then imwith Continental Europe, particularly with ported were only about two-thirds of the nor- Germany, Switzerland, Sweden, and Spain. mal volume—indicating reduced imports of During the last seven months of 1940 Gerraw materials. As a result of the general rise many took 41 per cent of Italy's exports, in import prices the reduction in the value providing some 47 per cent of her imports. of imports by 2 per cent for the year as a Apart from the obstacles caused by warwhile corresponds to a setback of 30 per cent fare and blockade, the decline in the trade of in volume. south-eastern Europe shown by the trade returns for 1940 was due to bad harvests in The export trade shows a somewhat difmost of the countries and also to measures ferent development. From September 1939 to the summer of 1940 there was a certain retaken by the governments to retain essential duction in the weight of goods exported commodities for home consumption. In the (partly because of export prohibitions in approach to the problems of foreign trade a Switzerland and partly because many foreign great change has occurred: while up to the countries prohibited the import of Swiss end of August 1939 the aim of the commerproducts of a luxury character), but prices cial policy was to achieve a "favourable trade NOVEMBER 1941 1113 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Annual Report of the Bank for International Settlements were higher, so that in value exports still could no longer be imported from overseas showed an increase. From the third quarter countries. In judging the value of the forof 1940 a notable advance occurred in the eign trade figures it must be borne in mind volume of exports—an indication of a change that during 1940 export prices rose by an in the structure of the export trade. Nor- average of 27 per cent and import prices by mally, Swiss exports consist of highly manu- 62 per cent. factured products. While in some of these The foreign trade of Holland in the first lines exports declined, an important new quarter of 1940 was characterised by a large category was added: export of goods for gen- import surplus. No statistics are available eral consumption, such as cattle and dairy for the month of April, but in the ten months products, which are heavier in weight in rela- May 1940 to February 1941 trade was mainly tion to their value. with Germany. In the three Scandinavian countries imports were exceptionally high up to the spring FOREIGN TRADE OF HOLLAND of 1940, when the extension of the war to [In millions of florins] Norway and Denmark radically changed their foreign trade position. Normally about 40 Total With Germany per pent of total Swedish exports consisted of timber, wood-pulp, and paper, of which Period Ex- Im- Bal- Ex- Im- Balmore than three-quarters was sold to the ports ports ance ports ports ance British and extra-European markets, now no longer accessible. New trade agreements J M an a y - M 19 a 4 r 0 1 -F 94 eb 0 . 1941 4 2 1 1 9 7 4 5 0 7 8 5 - - 1 1 5 9 6 1 30 3 3 2 31 7 7 7 + -4 1 5 4 were concluded with a number of countries in Europe as well as with the U. S. S. R.; Imports from Germany increased from Ocwhile in 1936-38 the Continent of Europe actober 1940, probably in connection with incounted for 53 per cent of both Swedish imcreased supplies of raw materials for Dutch ports and exports, in the twelve months May industries, which early in 1941 received large 1940 to April 1941 it provided 83 per cent German orders. of the imports and took 91 per cent of the During the first four months of 1940 the exports. imports of the Belgium-Luxemburg Union amounted to 8,395 million and the exports to FOREIGN TRADE OF THE NORTHERN COUNTRIES IN 5,887 million Belgian francs, leaving an im- 1939 AND 1940 port surplus of 2,508 million. The follow- [In millions of national currency units] ing table shows the foreign trade with Germany up to September 1940. Country Imports Exports Trade balance BELGIUM-LUXEMBURG TRADE WITH GERMANY Denmark: MAY-OCTOBER 1940 1939... 1,740 1,578 -162 1940... 1,374 1,508 +134 In millions of Belgian francs! Finland: 1939... 7,573 7,710 +137 Norw 19 a 4 y 0 : ... 5,180 2,980 -2,200 Month Imports Exports 1939... 1,366 -559 Swe 1 d 9 e 4 n: 0... 945 612 -333 1940—May 661 1,057 1 19 9 4 3 0 9 . . . . . . 2 1 , ,9 4 9 9 9 9 1 1 , , 8 3 8 3 9 8 - - 6 6 1 6 0 1 J J A u u u n ly g e ust 1 1 7 4 5 2 1 9 1 3 8 8 1 4 September. 215 136 In Norway also the volume of imports and exports fell heavily after the events in the For the last quarter of the year no figures spring of 1940, although measures were taken of foreign trade have been published, but the to increase German purchases of forestry customs receipts for that quarter indicate products, fish, and minerals. Denmark, for that trade recovered somewhat from the low the first time since 1914, had an export sur- level of only 10 per cent of normal which plus in 1940, due to large exports to Germany obtained in the summer and early autumn of not only from current production but also 1940. from the stocks of cattle, pigs, and poultry Price movements.—In the United Kingdom which had to be reduced when feeding stuffsthe initial advance of prices in the months 1114 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Annual Report of the Bank for International Settlements immediately following the outbreak of war slowed down in 1940. PRICE MOVEMENTS IN THE UNITED KINGDOM [August 1939=100] Index Aug. 1939 Wholesale prices* Retail food prices.. Cost of living HI Dec. 1939 Dec. 1940 Mar. 1941 124 151 154 113 125 122 112 126 127 * Board of Trade Index. Apart from the impact of the heavy budget deficit and price developments on the world markets (where relatively slight increases have occurred), the main factors influencing British prices of imported commodities have been the lowering of the exchange value of the pound by 14 per cent in September 1939, higher costs of transport, changes in the sources of supply, and the Government's buying policy. This applies also to purchases of home-produced commodities, the prices of which have been influenced by increased costs, since rates of wages as well as prices of materials, equipment, and transport have risen, while net profits have rather shown a tendency to fall. Nominal wage rates rose by 14 per cent between August 1939 and December 1940. Retail food prices, which rose by 25 per cent in the same period, have been fixed more and more by the Government, in some cases by means of subsidies designed to keep down the advance in the cost of living. Germany has continued to apply a system of comprehensive price control by which the increase in wholesale prices and in the cost of living has been kept within narrow limits. PRICE MOVEMENTS IN GERMANY [August 1939=100] Index Aug. 1939 Wholesale prices Retail food prices _. .. Cost of living HI system designed to ensure that shortages do not lead to increases in prices. The price control in Germany, which since the beginning of the war has applied also to wages, was further extended in 1940. By decree of November 6, 1940, it was made compulsory to reduce prices in cases where, for instance, more efficient technical methods or a lowering in quality led to a rise in profits. In exceptional cases permission may be given to firms to surrender part of their profits instead of lowering prices. In addition to the "price stop" and "wage stop" already in force, a "profit stop" was thus introduced. In Italy, by ministerial decree of March 12, 1941, the "price stop" instituted in June 1940 was prolonged for the duration of the war. Provision was made for prices to remain at the level prevailing on June 30, 1940, and for the prolongation of current contracts regarding remuneration for work, insurance, rents (with certain restrictions), lighting, etc. Although the official publication of price indexes has not been resumed, it is known that a rise in prices of certain commodities has taken place, especially as a result of the higher cost of imports. PRICE MOVEMENTS IN EUROPE [August 1939=100] Wholesale prices Cost of living Country Dec. 1940 Mar. 1941 Dec. 1940 Mar. 1941 Bulgaria 135 135 119 121 Denmark 172 178 136 139 Finland 124 132 Greece 123 Hungary _. 127 131 115 117 Norway 150 160 130 134 Portugal 145 111 114 Spain 130 134 Sweden 144 152 119 128 Switzerland 153 159 117 120 Turkey 120 * 124 Yugoslavia.. 188 * 203 149 * 155 Dec. 1939 Dec. 1940 Mar. 1941 * February 1941. In other continental European countries 100.5 103.5 104.3 98.3 101.4 102.5 for which price statistics are available, the 99.3 102 7 103.8 rise in wholesale prices amounted to at least 30 per cent from the outbreak of the war to The increase in prices has been mainly in March 1941. finished industrial products (especially tex- The increase was highest in Yugoslavia, tiles, shoes, furniture, and rubber articles), where it exceeded 100 per cent; then came whereas agricultural prices showed prac- Denmark with more than 75 per cent, Nortically no change. Strict rationing of the con- way, and Switzerland with around 60 per sumption of essential commodities and allo- cent, Sweden with more than 50 per cent, cation of supplies of materials by official Bulgaria 35 per cent, and Hungary just over agencies are integral parts of the distributive 30 per cent. The cost of living has risen less NOVEMBER 1941 1115 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Annual Report of the Bank for International Settlements granted to German exporters to enable them Cost of Living in certain countries to compete on foreign markets. Index figures Jan.-June 1939 = 100 The outbreak of the war and the virtual 165 isolation of the Continent of Europe from the rest of the world strengthened Germany's trade position within the European area. Germany was able to abolish the export subsidies and to attract to herself goods which had previously been exported to the British Isles or extra-European countries. The result was that Germany's price level became one of the dominating influences in price developments on the Continent. This has been the case especially in relation to the Protectorate of Bohemia and Moravia and to Holland, consequent upon the abolition of exchange restrictions between them and Germany (and for the Protectorate customs duties as well) ; and the same forces have been at work also vis-a-vis other countries on the Continent of Europe. By the increases in prices and wages which have occurred since the outbreak of the war a considerable adjustment to the German level has no doubt already been effected, but in some cases discrepancies still remain, which, at the prevailing rates of exchange, are in no way negligible. Apart from influences emanating from the foreign trade position, price movements in B.R.I.M. 1939 1941 the various countries have been subject to a number of domestic influences, among which steeply—often by only one-half of the rise in the increased cost of production of substiwholesale prices. tutes, poor crops in 1940, and higher prices In general, adjustment to the German price paid to encourage an extension of farming, level has been an important factor in price as well as the mounting budget deficits, have movements on the Continent of Europe since been the most important. Systems of price the outbreak of war. In the years 1929-33 control are everywhere in force, and inprices and wages in Germany were reduced creased powers have been given to price conby 35 and 20 per cent respectively, i.e., to a trollers in 1940. Wage control is still an greater extent than in other European coun- exception to the rule, but in no country can tries, but the depreciation of the currencies the government remain indifferent to imof these other countries while the Reichsmark portant changes in wage rates. It is genwas maintained at par made the German price erally admitted that a rise in the cost of level, when calculated at official rates of ex- living should not be fully compensated by a change, higher than elsewhere. By the be- rise in wages; when the higher living costs ginning of 1939 the resulting divergence of reflect an increased scarcity of consumption wholesale prices amounted to fully 30 per goods it is physically impossible to compencent; in relation to France it was even greater sate everybody; and when indirect taxation on account of the far-reaching depreciation is increased part of the purpose is often to of the French franc in 1938. In order to restrict the volume of consumers' purchases, maintain equilibrium in her balance of paywhile full compensation would mean freedom ments notwithstanding the considerable price from the particular tax increase. The comdiscrepancy, Germany imposed a comprepensation which has in fact been granted to hensive system of foreign trade control under wage-earners in different countries has been which imports were restricted and subsidies limited in general to about one-half of the 1116 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Annual Report of the Bank for International Settlements rise in the cost of living, with special allow- twenty-one European bank rates were lowances in favor of larger families. Rationing ered during 1940, the most important considmakes it possible, as a rule, to ensure a more eration in each case being to enable the govequitable distribution of available supplies ernments to borrow at lpwer cost. than would be the result of competitive bid- In Germany the technique of war financing ding in a free market and also to prevent was perfected in peacetime and, whereas shortages from resulting in exaggerated price other countries were forced to improvise new rises. It has been the tendency everywhere methods, at least in the first months of the to rely more upon direct intervention in the war, the change in Germany was rather one price system through rationing and control of degree and the transition a smooth one. than upon credit restriction. The total revenue of the Reich from taxation and borrowing rose considerably on the outbreak of war and at the end of 1940 was more GOVERNMENT FINANCE, MONEY AND CAPITAL than double that of the last quarter of 1938. MARKETS, AND THE STOCK EXCHANGES The financial year runs from April to March Government finance, money and capital and the following table gives figures for the markets.—Government financing dominated past three years. the money and capital markets throughout the world in 1940, not only in the belligerent REICH RECEIPTS FROM TAXATION AND BORROWING countries but in neutral states and occupied [In millions of Reichsmark] territories also. Only in rare instances were other factors important, as for example the Percentfinancing of clearing claims in Denmark and Quarter T t a io x n a- Bo i r n r g ow- Total tot a a g l e fr o o f m Slovakia and the repatriation of dollar bal- taxation ances to Switzerland. Budget deficits caused by the war were financed in the first months 1939 April-June 5,221 3, 738 8, 959 58.3 July-September 6,179 5, 074 11,253 54.9 by both Germany and England almost wholly October-December 6, 335 6,102 12,437 ,50.9 1940 January-March _ . 5,840 6,159 11, 999 48.7 at short-term, but more recently large longand middle-term loans have been placed, so 1940 April-June.- _._ ._ 6, 067 8,134 14, 201 42.7 July-September 7, 351 9,575 16, 926 43.4 that in both cases government borrowing in October-December 6,987 9,819 16, 806 41.6 1941 January-March . - 6,816 10, 309 17,125 39.8 the six months to March 1941 was abouthalf at long- and half at short-term. In Financial years 1938-39 17, 691 10, 838 28, 529 62. 0 1939-40 23, 575 21, 073 44, 648 52.8 Italy considerable conversion and consolida- 1940-41 27, 221 37,837 65, 058 41.8 tion issues have been made to reduce the floating debt, swollen through the budget This table does not show all budgetary redeficits of recent years. In most other Euro- ceipts although it covers over 90 per cent of pean countries budget deficits due to arma- internal budget revenue. The war contribument expenditure, occupation costs or efforts tion of the local authorities to the central at reconstruction have been financed largely government, due to economies of adminisat short-term, in some cases through a con-tration up to one-half, gave a further 1.25 milsiderable expansion of bank (including cen- liard Reichsmark in 1940-41 and, with net tral bank) credit. receipts from public enterprises, etc., made The war has not put a stop to the era ofup some 3-4 milliard in addition to the tax cheap money except in temporary and iso-revenue shown in the table. lated cases. Long-term rates of interest have Of the total budgetary receipts, amounting fallen over the year in the United States and to, say, 68-69 milliard Reichsmark in 1940in Germany, England, and some other Euro- 41, less than one-fifth was needed to cover pean countries, including territories occupied civil expenditure, the balance being devoted by Germany after the campaign in the spring to the war effort. Besides this internal budget and summer of 1940. In Sweden the official revenue, contributions are received from the discount rate was raised by V2 per cent in occupied territories in the shape of occupa- May 1940, this being the only increase of tion costs, which for France, for instance, bank rate in the world during the year (if were at the rate of 7,300 million Reichsmark the readjustment of bank rate in the Pro-annually: the returns of the Bank of France tectorate of Bohemia and Moravia to the show, however, that up to the end of 1940 German level be omitted) ; eight out of less than half had been effectively utilised. NOVEMBER 1941 1117 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Annual Report of the Bank for International Settlements Official estimates of revenue for the financialliard Reichsmark in 1940 against only 22 year 1941-42 give the income from taxation milliard in the middle of 1939, 2 milliard of at 30 milliard, administration receipts at 5 the increase being due to the inclusion of milliard and the war contribution of the Ostmark and Sudeten banks in the 1940 figlocal authorities at 1.4 milliard Reichsmark. ures. A further feature was the small amount The addition of the "Matrikular" contribu- taken by direct advances from the Reichstion of the Protectorate and the occupation bank (included in the Bank's return under costs from occupied territories raises the "Sundry assets", which also comprise the ditotal current revenue (apart from borrow- rect advances to the Reichspost and Reichsing) above 40 milliard. bahn). Some forms of taxation receipts and customs revenue may be expected to fall off in GERMAN REICHSBANK RETURN wartime but other tax income has increased [In millions of Reichsmark] to take their place. Since the outbreak of war a 50 per cent supplement has been added Assets Liabilities to income tax and war increases have been End of quarter made to taxes on beer, wines, and tobacco. Bills Securi- Sundry Note De- Official statements have been issued to the ch a e n q d ues ties assets ci t r i c o u n la- po e s tc it . s, effect that no new taxes and no further increases in the rates of present taxation are 1939 December. 11,392 1,197 2,033 11, 798 2,018 to be made in 1941 and that no "war loans" 1940 March 12, 242 537 1,822 12,176 1,760 June 12,611 597 1,863 12, 785 1,854 are to be publicly offered on the open market. September. 13, 206 472 1,797 12,847 1,795 Actually wartime borrowing has been ef- December. 15,419 1,726 14, 033 2,561 fected "noiselessly" through the intermediary 1941 March 15,367 385 1,246 14,188 2,127 of banks and other institutions. The total public debt of the Reich (exclud- Actually the "working credit" of the goving tax certificates) rose, according to the ernment was reduced on balance during 1940 published statements, from 19 milliard Reichs-by 205 million Reichsmark to 580 million, mark at the end of March 1938 to 34 milliardwhile the item "securities" fell as Government at the outbreak of war and 86 milliard at bonds were sold on the stock exchange. On the end of March 1941 (of which 38 milliard the other hand, the volume of "bills and Reichsmark was at short-term). In the cal- cheques," mostly Treasury bills and thus endar year 1938 huge market issues were representing indirect Government borrowing, made and long-term financing preponderated. rose by 4 milliard Reichsmark on the year. Short-term issues, particularly Treasury bills, The rise of the note circulation in 1940 is became more important in 1939, especially if largely accounted for by the territorial exaccount be taken of the six-month tax cer- pansion and by the slower circulation of tificates (one-half of the total). money and the maintenance of higher cash Large issues of Treasury bills were made reserves. Treasury bills issued by the Govin 1940 but the volume of long- and middle- ernment during the year 1940 amounted to term loans also grew, so that receipts from 17.4 milliard (raising the total in circulation borrowing of 20 milliard Reichsmark in the to 30.7 milliard). Some 13.4 milliard Treaslast six months of the financial year 1940-41 ury bills were thus placed outside the Reichswere divided almost equally between long- and bank, mostly with the other banks, which exshort-term issues. Classified under long- perienced a remarkable increase of deposits term "market" loans in 1940 are the new is-during 1940 parallel to the rise of Treasury sues of 4 per cent Treasury certificates, the bills and securities. earlier tranches of which were of only 5 Besides the acquisition of Treasury bills, years' while later tranches were up to 20 an important factor during the year was the years' maturity. A remarkable feature of extension of the banks' business to incorthe year was the large amounts invested in porated and occupied territories. Deposits government bonds by savings banks, insur- with the five Berlin Grossbanken grew by ance companies, and similar institutions (the one-third in 1940 and with the four special so-called "liquidity loans") reflecting the banks by over one-half. It has been estiaccumulation of small savings. Deposits in mated that the deposits with all reporting savings banks alone passed the level of 33 mil-banks at the end of 1940 were about 33-35 1118 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Annual Report of the Bank for International Settlements GERMAN BANKS' BALANCE-SHEET ITEMS GERMAN MARKET RATES [In millions of Reichsmark] [In percentages] Assets Liabilities At out- Begin- Re- Issue break ning of duc- End of year of war 1941 tion ch B a e n i q l d l u s es T b u r i e r l a y ls s- Se ti c e u s ri- va A n d c - es p e D o t s e c i - . ts Share yields 5.20 3.80 1.40 "Liquidity loans" and longer-term Treasury certificates. . _ . . 4.50 3.50 1.00 A. Five big 1938,._. 2,243 1,229 768 3,223 7,627 17-18 months' Treasury bills i 3.75 3.00 0.75 Berlin Banks 1939.... 2,137 2,563 3,416 8,803 "Block bills" of 360 days . . _ 3.56 2.75 0.81 1940.... 2,282 3,793 2,715 11, 699 6-7 months'Treasury bills 2 3.25 2.50 0.75 Private discount rate 2.75 2.25 0.50 B. Four special 1938 1,471 532 416 3,296 Banks 1939.... 985 3,071 455 475 5,103 1940.... 1,504 4,701 640 7,846 1 12-13 months' bills. C. Total nine 1938.... 3, 714 1,978 1,300 3,639 10, 923 2 4-5 months' bills. Banks 1939.. _. 3,122 5,634 943 3, 891 13,906 1940.. . 3,786 8,494 2,128 3, 355 19, 545 the first issue at 99 of 4 per cents (for five years) in March 1940 gave a yield of 4.33 milliard Reichsmark against 21 milliard in per cent, while early in January 1941 it was July 1939, when the last monthly return was possible to make a 31/2 P^r cent issue (for 15 published, an increase of 12-14 milliard, years) at 98% with a yield of 3.63 per cent. mostly against Treasury bills. In the same The Reichsbank increased its holding of period the total Treasury-bill issue rose by securities by 100 million Reichsmark between 23 milliard Reichsmark, of which about 7 March 7 and the end of April 1940 but was milliard was placed with the Reichsbank and able to sell in later months, and by the end of 16 milliard with banks and other market in- the year its total holding was very low (under stitutions. Significant as a sign of the 390 million). liquidity of the economy as a whole and of The most important event from a financial the change of structure of the banks is the point of view in the Protectorate of Bohemia fall of advances in 1940. and Moravia was the customs and monetary Each of the three big Berlin banks with a "Anschluss" with Germany on October 1, network of branches throughout the coun- 1940, by which the Protectorate came within try increased its capital during the year to the German system of customs and foreign keep pace with the increase of total liabili- exchange restrictions. During the year the ties. The capital and reserves of all German market was under the influence of increasing reporting banks amounted to 2.5 milliard liquidity due chiefly to the surplus of exports, Reichsmark with 21 milliard deposits in July for the most part to the Reich (while clear- 1939 against 4.5 milliard with 11.5 milliard ings with other countries were also made deposits in 1913. The problem of raising capi- through Berlin in Reichsmark). The easy tal resources when profits are tending to fall conditions are illustrated in the National with the narrowing margin of interest rates Bank's return by the almost complete disapis similar to that in the United States—and, pearance of internal credit business at the as in that country, emphasises the importance end of the year, the rise of "other sight liaof building up reserves. In both cases the bilities" and the increased circulation of solvency of the banks and the protection of "Bons de caisse", issued since the second half depositors are assured rather by the high of 1938 to mop up surplus funds on the marlevel of the banks' first-class liquid assets ket. than by the volume of nominal capital. In order to fall into line with the Reichs- The Reichsbank reduced its discount rate bank, the National Bank's official rate of to zy% per cent on April 9, 1940, from 4 perdiscount was raised from 3 to %y% per cent cent, at which it had stood since September on October 1, 1940, while other rates in the 1932. The extent of the reduction of inter- country were similarly adjusted. During est rates in Germany since the beginning of the year the regulations governing the Nathe war may be seen from the following table. tional Bank were modified to exclude from The liquidity of the economy is reflected the primary cover provisions those Protecalso in the long-term market. Perhaps the torate notes issued against German currency most striking illustration of this is found in and other claims in Reichsmark, including the terms of issue of Treasury certificates; Reich Treasury bills and certificates which NOVEMBER 1941 1119 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Annual Report of the Bank for International Settlements NATIONAL BANK OF BOHEMIA AND MORAVIA month. The extent of the Italian effort may [In millions of koruny] be realised by comparison of these figures with the national income, which was esti- Assets Liabilities mated for 1939 at 125 milliard lire. The aggregate deficit of 82 milliard lire in End of month a e c i n G h g d a n o n l f e g d o x e r - - t c e r I r e n n d - a it l a " s S d se r u y t n s' - ,' l c N a i t r o i c o t u e n - l O i s a t i t i b g h e i h s e l t i r - c " a B i d s o e s n e s " t h h a e s b s e ix en f i c n o a v n e c r i e a d l b y y ea b rs o rr 1 o 9 w 34 in -3 g 5 a t t o l o 1 n 9 g 3 - 9 a - n 4 d 0 middle-term and at short-term in about equal 1938 December 3,942 3,550 1,045 6,950 656 395 proportions. The floating debt expanded in 1939 December 2,402 1,896 *3,791 6,345 1,054 525 the six years by about 40 milliard lire, of 1940 September 2,494 710 5,345 5,976 969 931 December 2,232 24 7,816 6,453 1, 560 1.002 which some 8-9 milliard was on account of 1941 March 2,234 250 8,444 7,007 2, 051 1,320 the current advances of the Cassa Depositi e Prestiti and of other official institutions, 16-17 * 2,831 million koruny of this amount are shown in the balance sheet to be claims on Germany on account of Reichsmark note and coin hold- milliard lire was issued as one-year Treasury ings (636 million) or other floating assets (2,195 million). bills and the remainder, say 15 milliard, was covered by other Treasury resources and the the Bank was also authorised to discount or extension of central bank credit. No depurchase. tailed statistics of the public debt have been The Italian budget has shown a deficit since published since June 1935, when the total the year ending June 30,1931 (financial year internal debt was 105 milliard lire, of which 1930-31), but it was only from the time of 12 milliard was floating debt. At the end of the Abyssinian campaign (beginning October June 1940, the total debt was estimated at 1935) that "exceptional", military expendiabout 170 milliard, of which 40-45 milliard ture took a prominent part in the budget would be at short term. outlay. Recent closed budget figures have been as follows: The note circulation, which fell from 18 milliard lire at the time of the stabilisation of the currency in 1927 to under 13 milliard ITALIAN BUDGET ACCOUNTS in the middle of 1935 (before the Abyssinian [In billions of lire] campaign), rose above 24 milliard by the end of 1939. In the two years up to the end of "Excep- Total tional" 1939, 8 milliard lire was advanced by the Bank Year Rev- expendi- Deficit expendi- of Italy direct to the Government, there being enue ture ture l a corresponding increase of the Bank's total Four years' average sight liabilities. In the first nine months of 1930-31 to 1933-34 19.0 22.6 3.6 war about ten per cent of the total borrowing 1934-35 18.8 20.8 2.0 1.0 1935-36.. 20.4 33.1 12.7 11.1 of 50 milliard lire (three-quarters of the esti- 1936-37 . . 24.7 40.9 16.2 17.5 1937-38 27.5 38.6 11.2 9.0 mated deficit of 65 milliard) was from the 1938-39 . 27.6 39.9 12.3 6.5 central bank. On this basis the note circu- 1939-40 32.4 60.4 28.0 21.9 1940-41 2 31.0 96.0 65.0 lation in March 1941 was estimated at a minimum of 30 milliard (the advances to the 1 Included in total expenditure (column two). Government being some 15 milliard). 2 Estimates of the Ministry of Finance. In the countries occupied by Germany after Expenditure rose, prior to the present war, the campaign in the spring and early sumfor a number of reasons, of which the most mer of 1940 certain similarities in the line important were the costs of the Abyssinian of development may be traced. Emergency campaign, the empire development schemes, government financing (generally involving the Spanish war, the union with Albania, and drawing on the central bank) to cover the the policy of autarky and rearmament. In suddenly increased outlay, partial moratoria, spite of a 50 per cent increase of revenue restrictions on the withdrawal of bank deover the five years from 1934-35, the heavy posits, and closing of stock exchanges were "exceptional" expenditure in the year 1939-40 followed by the use of German means of pay- (which includes the first three weeks of active ment (Reichskreditkassenscheine) by the adwarfare) raised the deficit to a record figure. vancing German troops. With the occupation Expenditure for the financial year 1940-41 completed, German commissioners were apwas estimated at 96 milliard lire and the pointed to the central banks and the Kassendeficit at 65 milliard, say 5% milliard a scheine were kept in use until arrangements 1120 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Annual Report of the Bank for International Settlements had been made for payments in local cur- the 1,000 million new central-bank credit rencies by the German authorities; the banks thus created, 400 million has been utilised were fully opened, moratoria were lifted and to repay credit previously granted, 100 milthe stock exchanges gradually resumed ac- lion has gone into circulation and nearly 500 tivity. The local currencies were closed to million has piled up on sight account at the outside influences by exchange restrictions National Bank. The liquidity indicated by and rates were fixed with the Reichsmark as higher cash holdings and the repayment of well as with other currencies. Taxes began debts is also reflected in the returns of the to flow in again and government financing private banks. became more normal but generally some cen- In May 1940 the Government created a 100 tral-bank credit continued to finance the clear- million kroner fund to guarantee, up to 50 ings with Germany and to cover occupation per cent, advances made by the banks for the costs; thus note circulations and commercial financing of industrial enterprises, but total banks' cash reserves rose, bank deposits ex- advances nevertheless continue to fall. With panded, the markets increased in liquidity, deposits and cash rising and credit being reand interest rates fell. paid, the banks have employed part of their Denmark and Norway were occupied by increased resources in the bond market (tak- Germany in April, Belgium and Holland in ing up securities sold by the National Bank May, and the north and west of France in to curb the expansion of its assets). Over June 1940. The principal causes for the the year bond prices have risen by 10 per changes in the credit situation in Denmark cent and the National Bank has twice reduced since April 1940 are best shown by a table its discount rate, from 5*/^ to 4X/% per cent in giving the main alterations in the return of May and to 4 per cent in October 1940 (while the central bank. parallel reductions have been made by the commercial banks on deposits and credit DAN MARKS NATIONALBANK RETURN items). It is noteworthy that savings-bank [In millions of kroner] deposits have not recovered. For the whole year 1940 they remained below the level of Item M 1 a 9 r 4 c 0 h M 1 a 9 r 4 c 1 h o C n h a y n e g a e r 1939. Some small loans have been issued by the Government but insufficient to put a check Assets Clearing assets _ . . _ . 498 +498 to the expansion of central-bank credit. Sundry debtors 47 561 +514 The situation in Norway is more difficult All other assets J. 818 414 -404 to illustrate owing to the absence of the cen- Total of balance sheet. 865 1,473 +608 tral-bank return, the last to be published Liabilities N Si o g t h e t c d ir e c p u o l s a i t t i s o 2 n .. . . 60 7 9 5 7 55 0 4 7 + + 4 9 7 8 9 being that of March 30, 1940. This return All other liabilities 181 212 +31 showed the increase of tension, the note circulation having risen to 600 million kroner 1 Including the gold reserves and internal credit items. compared with 480 million, the average for 2 Including current accounts. 1939. This tension grew in April, there being Danish exporters through the clearing are a run on bank deposits met by an increase of paid directly and the foreign claims taken rediscounting at the central bank. From over by the National Bank. A large surplus April 16 a moratorium was declared until of exports of agricultural products to Ger-May 9. In that month a change took place: many has led to a piling-up of clearing claims the Oslo bank's discount rate was reduced on against which imports have not been made. May 11 from 4^ to 3 per cent, with parallel In March 1941 there were net foreign ex- reductions in the interest rates of the comchange and clearing assets of 513 million mercial and savings banks. The easing of kroner against all countries, compared with the situation was due to the relaxation of a net debt of 36 million a year before. The tension with the ending of the campaign and item "Sundry debtors," which includes the to the further extension of central-bank claims on the Reichskreditkassen for Kassen- credit to the Government. The note circulascheine redeemed by the National Bank and tion continued to rise and was estimated at also the financing of the occupation costs, has about 1,000 million kroner at the end of the grown in a similar measure. Together the year, while the published returns of the comtwo items have risen by over 1,000 million mercial banks show a swelling of their cash kroner during the year to March 1941. Of resources. NOVEMBER 1941 1121 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Annual Report of the Bank for International Settlements NORWEGIAN COMMERCIAL AND SAVINGS BANKS NEDERLANDSCHE BANK RETURN (Aggregate Figures) [In millions of florins] [In millions of kroner] 1940 1941 Deposits Se- Cash Re- Item End of month Loans c t u ie r s i- ser r v e- es2co d u i n s t - s i M 6 ay M 2 a 0 y D E e n c d . M En a d r. Sight* Other Total Assets: 1938 December.. 146 2,834 2,980 1,680 1,021 100 1 Sundry accounts . . _ 21 21 123 212 1939 December __ 157 2,740 2,897 1,825 922 81 19 Foreign bills 1 15 23 1940 March 209 2,768 2,977 1,871 915 71 47 Loan to the Government 1 (-23) 15 261 175 December.. 554 2,636 3,190 1,579 1,001 441 1 1941 March 667 2,719 3,386 1,475 1,063 668 Total (three items) (-2) 37 399 410 Gold 2 . . 1,160 1,115 1,102 1,096 Domestic credit3. 228 302 211 221 1 Commercial banks only. Other assets 65 60 71 71 2 Including balances at central bank. Total of balance sheet. 1,474 1,514 1.783 1,798 The strain up to April 1940 and the com- Liabilities: Notes .... 1,159 1,261 1,552 1,593 plete change-over since the occupation are Private accounts 232 193 175 144 illustrated by the reduction of rediscounts Other liabilities 60 61 57 60 and the huge increase of the banks' cash 1 Net, i. e. direct advances plus Treasury bills placed with the Bank reserves. This increase of bank cash, accom- less credit on current account. 2 Mostly abroad. panied by the repayment of loans and a rise 3 Excluding credit to Government. in sight deposits at the commercial banks, must originate in the creation of central- notes. The tension soon abated, private bank credit, directly or indirectly, for account credit was repaid and on June 11 the restricof the Government. "Other deposits", which tions on the withdrawal of bank deposits more directly reflect changes in genuine sav- (which had already been relaxed on May 23) ings, have on the contrary fallen. were completely lifted. The costs of mobilisation and other extra- Since the occupation, however, the moneordinary expenditure in Holland caused an tary situation has been dominated by the exexpansion of the floating debt (to the Neder- cess of official financing over receipts, relandsche Bank and the market) to its highest flected in the considerable rise of three asset point of 630 million florins early in March items in the balance sheet of the Neder- 1940. In February a 300 million 4 per cent landsche Bank (shown at the top of the 40-year loan was issued and in March 132 table). From May 20 to the end of Decemmillion was received as the Government's ber 1940 the aggregate increase of 362 milshare in the book profits on revaluation of lion florins has its counterpart in a rise of the gold reserve. Thus, in April the floating 291 million in the note circulation and a net debt to the market was reduced below 400 repayment of 73 million private domestic million florins; the Government was out of credit. The two items "Sundry accounts" debt to the Nederlandsche Bank and, in fact, and "Foreign bills" consist largely of the had a credit balance in account. Reichsmark claims of the Nederlandsche Hostilities with Germany commenced on Bank. Besides financing the clearing balance May 10, whereupon restrictions on the with- and the occupation costs, the Government has drawal of bank deposits were imposed. The other extraordinary expenditure for warcampaign was short and the Nederlandsche damage compensation and unemployment Bank published its weekly returns as usual, relief, financed by short-term borrowing on except that of May 13,1940. The last return Treasury bills and from the Nederlandsche before the conflict showed no particular signs Bank, as reflected in the item "Loan to the of tension: a comparison of this with later Government" in the table. In Holland, unlike returns is given below. Denmark and Norway, the extension of cen- In the two weeks to May 20, 1940, the call tral-bank credit has led to an almost parallel on the central bank was considerable; the expansion of the note circulation. Government drew 38 million florins (with- Besides borrowing from the central bank, drawing its deposit and taking a loan) and the Government has placed a large volume private customers (mostly the banks) 111 of Treasury bills on the market. These have million (from deposits and credit granted), been largely taken up by the banks, whose while 102 million went into circulation as holdings have increased. Withdrawals of 1122 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Annual Report of the Bank for International Settlements deposits from the banks in the first months ments and to constitute cash reserves, but of the year were met by a reduction of the it was necessary to decree a partial restric- Treasury-bill holding, in May below 150 mil- tion on the withdrawal of bank deposits (as lion florins. From May 1940 to March 1941 on postal cheque accounts) from May 13 and deposits have risen by over 50 per cent while to postpone bill protests, etc. The armistice private credit has been repaid and the Treas- came into force on May 28. On June 27 the ury-bill portfolio, having increased to more new Bank of Issue in Brussels was founded than three times its earlier volume, amounts with a capital of 150 million Belgian francs to more than two-thirds of total deposits. (20 per cent paid up) subscribed by the Bel- In January 1941 a comprehensive tax re- gian commercial banks, but on July 7 the form was undertaken and it is estimated that direction of the National Bank returned from revenue from this source may be increased by abroad, where it had temporarily been 50 per cent from the 800 million florins in operating, and in August the partial bank 1940 to, say, 1,200 million in 1941. Govern- moratorium was lifted. ment expenditure, however, is estimated, on The weekly return of the National Bank the basis of recent borrowing, to be running was suspended from May 8 to December 26, at some 1,500-1,700 million florins a year 1940, inclusive, the Bank of Issue published above ordinary revenue. Ordinary expendi- no statistics before its balance sheet of Deture is estimated at 900-1,000 million florins a cember 31, 1940, and the circulation of year, public works and reconstruction at 200 Reichskreditkassenscheine was undisclosed. million, and the costs of occupation and ex- The National Bank has, however, published penditure for the German civil administration half-yearly balance sheets for June 25 and at 1,200 million. In addition, certain German December 25, 1940 (and weekly returns from orders to Dutch industry necessitate interim January 2, 1941, are available for both the financing by the Dutch Treasury. In Jan- National Bank and the Bank of Issue). The uary 1941 a 500 million 4 per cent ten-year following table summarises and combines the loan was issued at par for the consolidation statistics of the National Bank and the Bank of the floating debt. of Issue: The discount rate of the Nederlandsche Bank has remained unchanged at 3 per cent BELGIUM—COMBINED SITUATION OF NATIONAL BANK since August 29, 1939, in spite of the extreme AND BANK OF ISSUE * pressure (and bank moratorium) in the [In billions of Belgian francs] spring of 1940 and the comparative ease of the market at the end of the year. Assets Liabilities The outbreak of the European war in September 1939 came as a shock to the money Government and capital markets in Belgium, weakened Y m ea o r n a th nd e F i o g r n - Debt Cr t e o dit Note C re u n r t earlier in the year by an exchange crisis in Gold* cha e n x g - e 2 Short- Long- p e r c i o v n a - te l c a i t r i c o u n - co a u c n - ts the spring and bank failures in the autumn term term omy (following the Mendelssohn crash in Amsterdam) : the 4 per cent unified rente fell from 1939 December. 21.1 3.7 0.9 2.2 27.9 1.0 1940 June 21.6 0.3 5.9 0.9 4.7 33.5 1.4 around 85 in August to under 70 in Novem- December - 21.7 3.8 9.4 1.3 1.3 34.8 2.6 ber 1939. In the first months of 1940 there 1941 March 21.7 5.6 10.7 1.2 0.7 37.9 2.1 were signs of returning confidence—the uni- * Government debt statistics on last day of month. Other figures from fied rente rose to 80, and from January to National Bank balance sheets on 25th of month up to June 1940; for December 1940 and March 1941 the combined returns of the National March over 2,000 million Belgian francs of Bank and Bank of Issue for January 2 and March 27, 1941. the Government floating debt was taken up by 1 Including the so-called "valeurs-or" etc. On June 25, 1940, only 155,000 Belgian francs and on December 25,1940, 8,190,000 Belgian francs the market (thus relieving the National of the total gold holding was in Belgium, the remainder being held abroad. Bank). 2 Including for December 1940 and March 1941 two new items "Credits in foreign exchange" and "Foreign money and notes" and also the Hostilities between Belgium and Germany accounts of the Reichskreditkassen. commenced on May 10, 1940, whereupon the notes of the National Bank were made incon- May and June 1940 were the critical vertible and a credit of 5 milliard Belgian months and "credit to the private economy" francs was opened for the Government. The probably reached its highest point about the commercial banks borrowed freely from the end of June. In round figures, the huge in- National Bank, to meet customers' require- crease of 5.6 milliard Belgian francs in the 1123 NOVEMBER 1941 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Annual Report of the Bank for International Settlements note circulation in the first half of 1940 was half of 1940, there was also an appreciable due principally to 2.2 milliard direct Govern- increase in the volume of postal cheque acment borrowing and 2.6 milliard other de- counts (about 800 million) but savings-bank mands for credit (mostly by the banks). In deposits have tended to decline (by slightly the following months the tension was relaxed over 1 milliard on the year). but in the second six months of 1940 as a Although conditions on the market changed whole there was a net rise of over 1 milliard fundamentally during the year, the National Belgian francs in the note issue, accompanied Bank maintained its discount rate unaltered by a further expansion of Government bor- at 2 per cent from January 25, 1940 (when rowing from the National Bank by some 4 it was reduced by V2 Pe^ cent). Out of the milliard, while the "foreign exchange" hold- total borrowings of 12.7 milliard Belgian ing of the two banks rose by 3.5 milliard. francs during the year 11.3 milliard were at On January 2, 1941, this item combines 956 short-term (of which 5.7 milliard were placed million "foreign credits", 1,915 million "for- directly with the National Bank). Taxation eign notes and coin" and 1,015 million on the receipts, which fell heavily in the second and third quarters of the year but recovered to two accounts of the Reichskreditkassen: the the normal figures in the fourth quarter, probalance sheet of the Bank of Issue indicates vided 40 per cent of the Government's income that the foreign claims were predominantly for the year as a whole. Estimates of budget in Reichsmark (and doubtless represent, to expenditure have been raised from the 13.8 a large extent, the withdrawal of Reichskremilliard Belgian francs in 1940 (which was ditkassenscheine and the accumulation of in fact greatly exceeded) to 16.2 milliard in clearing claims). At the end of August 1940 1941 (excluding occupation costs). the Ministry of Finance gave a guarantee of The year 1940 in France may be roughly 1 milliard Belgian francs to the Bank of Issue divided into three periods, the first extending to cover possible losses due to the Bank's payto early May, the second to about the end of ing out amounts owing to Belgian exporters July and the third comprising the last five but remaining untransferred in Reichsmark months of the year. These periods may be on the clearing account in Berlin. In the illustrated by the figures in the following first three months of 1941 the expansion of table: the note issue was accelerated, rising by 3.1 milliard Belgian francs compared with 6.9 BANK OF FRANCE RETURN milliard during the whole year 1940. [In billions of French francs] The extension of official credit produced considerable liquidity in the economy of the 1939 1940 country, and central-bank credit to the pri- Item vate economy declined rapidly from June Dec. May June End Dec. 1940 to a very low level in 1941, while the 28 9 10 July i 26 commercial banks replenished their cash re- Gold 97 85 85 85 85 serves. These conditions are also reflected Private credit 2 17 19 29 29 17 Public credit— in the returns of these banks. Old advances 30 10 10 10 10 Deposits, after an increase at the beginning "War" advances 3 14 22 36 58 64 Occupation costs._ 72 of the year, declined to their lowest at the end of June. The run on deposits was met N Cu o r te r e c n i t r c a u c l c at o io u n n ts- ._ 151 159 174 197 218 and a high reserve of cash constituted by re- T Pr re iv a a su te ry 5 4 -_. 1 2 5 1 1 4 25 1 31 1 25 1 discounting bills (the bill holding falling by Reichskreditkassen - _ 41 1.5 milliard Belgian francs, i. e. 40 per cent, in the three months) and by further borrow- 2 1 B A i u ll g s u d s i t s 1 c . ounted, 30-day and other advances and bills purchased ing of 2.5 milliard from official sources. The on the market. 3 Authorised by the decree of September 1, 1939, and by the Consituation had entirely changed by September, ventions of February 29 and June 9, 1940. and from June 1940 to March 1941 deposits 4 Treasury and the Caisse Autonome d'Amortissement. s Including other sight liabilities. expanded by nearly 6 milliard Belgian francs, parallel to the Treasury-bill holding included The first period was one of comparative in the bill portfolio. The discounting of com- calm. The expansion of 8 milliard French mercial bills doubtless declined and advances francs in the note circulation was due to the to the public have been reduced from the ex- increase in "war" advances to the state. By panded figures of June 1940. In the second the revaluation of the gold holding in Feb- 1124 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Annual Report of the Bank for International Settlements ruary 1940, at the rate which had actually could take up its work, collection of taxes been in force since September 1939, it was began again. Deposits returned to the postal possible, on the one hand, to wipe out 20 mil- cheque accounts and the sayings banks, and liard French francs of the pre-war advances the net issues of Treasury bills rose to an avand, on the other, to transfer 30 milliard of erage of 6 milliard French francs per month. gold to the Exchange Stabilisation Fund, to Despite large exceptional expenditure the serve for war purchases abroad. Hence the resort of the Treasury to the Bank of France reduction of "old advances" by 20 milliard to meet internal needs slowed down and and the net decline of 12 millard in the gold later on ceased. At the same time the exholding. ceptional advances by the Bank to the market The second period covers the phase of began to be reimbursed from the month of active campaigning and the disturbed period August, but at that time the first payments during the summer. In the month to June 10 of occupation costs had to be met and the there was an expansion of 10 milliard French series of agreements between the Bank of francs in private credit and 14 milliard for France and the Treasury gave the latter the Government, accompanied by an increase special advances for that purpose. The first of 15 milliard in the note circulation. No of these agreements was signed on August 25 weekly return was published from June 10 and the amount of 27.2 milliard French but weekly figures from August 1 have been francs, representing the amount of occupagiven in the Bank's annual report and more tion costs for the period since June 25, was detailed explanations have been added by the debited to the account of new advances "for Minister of Finance and the Governor of the occupation costs" and a similar sum cred- Bank of France. At the General Meeting of ited to the current account of the Reichsthe Bank in March 1941 the latter said that kreditkassen. Altogether this account had the bill portfolio, 6 milliard French francs been credited with 77,144 million French on May 9, reached its highest point of about francs by the end of the year, 72,317 million 18 milliard in the first days of July and that being debited to the special advances account the total expansion of private credit in a few and the balance temporarily to the Governweeks amounted to 14 milliard. The Bank of ment's "war" advances account. Of the total France made every effort to avoid a general 77 milliard odd, 41,400 million French francs moratorium. The banks were helped by a (54 per cent) remained unspent on the acsystem of overdrafts against the deposit of count of the Reichskreditkassen at the end Treasury bills (to eliminate continuous hanof the year; 24 milliard had been drawn to dling of securities) while commercial bills cover various payments while 12 milliard were discounted even if they carried the sigwas utilised to redeem Reichskreditkassennature of debtors resident in occupied terrischeine previously issued by the occupying autory. To permit the Treasury to cover its imthorities (the amount remaining in circulamediate needs while tax collections were praction in France being unknown). tically interrupted, the Treasury concluded Central bank credit granted to the private an agreement with the Bank of France on economy of the country decreased in the June 9,1940, by which the maximum of "war" second half of the year to a figure slightly advances was raised to 70 milliard French less than at the end of 1939, owing partly to francs. This maximum was never exceeded the liquidity of the market and partly to the despite heavy drawings in June and July. low level of business activity. As a conse- The effect of the demand on the Bank's credit quence, the rise in the note circulation slowed was a rise in the note circulation to 198 mildown. After having reached nearly 40 milliard early in August (an increase of nearly liard French francs in May, June, and July, 40 milliard, some 25 per cent in three the increase rather exceeded 20 milliard durmonths). ing the last five months of the year and, ac- The third period was characterised by ef- cording to a statement by the Minister of forts to put the internal financial position Finance, it was only 11 milliard during the and the banking system in order and also by first four months of 1941, bringing the note the appearance of a new factor: the payment circulation to 232 milliard French francs at of the costs of occupation fixed at 400 million the end of April. French francs a day from June 25. With the armistice the great part of the Once the local financial administration military expenditure ceased: nevertheless, NOVEMBER 1941 1125 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Annual Report of the Bank for International Settlements besides ordinary administrative expenses and FRANCE—RETURNS OF THREE BIG COMMERCIAL BANKS debt service, there was considerable emer- [In billions of French francs] gency expenditure on immediate reconstruction (bridges, etc.), on behalf of refugees Assets Liabilities and other relief in the face of the drying-up of ordinary income (although no tax returns Year and month Advances Cash Bills and Deposits were published, taxation revenue doubtless overdrafts fell off in the spring and summer as in Belgium and Holland). The budget deficit, 1939 December . 4.5 27.2 7.9 39.4 which towards the end of 1940 was estimated 1940 March 4.0 31.7 8.2 43.5 June*. at about 5 milliard French francs a month, September 5.8 36.7 9.7 52.1 was largely met by the issue of Treasury bills, December 6.2 43.8 8.4 58.5 which explains the cessation of the Treasury's 1941 March.. 5.7 50.0 8.3 63.6 resort to the Bank of France except for payment of the occupation costs. * Not published. For 1941 a budget has been established annual report of the Societe Generate. The which does not comprise the occupation costs increase of deposits continued until the end (146 milliard French francs covered solely by of the year and into 1941. Although cash rethe Treasury) nor the expenditure of the serves were strengthened (partly owing, no Caisse Autonome d'Amortissement (9 mil- doubt, to the prohibition of transfer from the liard covered by the resources allocated to occupied to the unoccupied area) and there the "Caisse"). The budget estimates are as was some private borrowing in the form of follows: advances and overdrafts in the middle of Billions of 1940, the characteristic of the returns is the Ordinary expenditure French francs parallel rise of deposits and bills. As the circulation of commercial bills (and accept- Public debt . . ... 18.0 ances) has fallen with the decrease of busi- Annuities, pensions, etc. 14.5 ness activity, the holding of Treasury bills Administrative expenditure. 64.5 must have risen by at least 20 milliard French francs during the year 1940 (an amount fully Total 97.0 equal to the increase of deposits). In the middle of March 1941, the Bank of Extraordinary expenditure France reduced its bank rate and the rate for Liquidation of expenditure 30-day advances against Government paper resulting from the hostili- of not more than two years' maturity, from 2 ties . . . 29.0 to 1% per cent. This decrease of % per cent Public works, etc.. 8.6 was followed by a similar reduction in the rates for National Defence Bills and for the Total 37.6 various classes of Treasury bills. An improvement of 414 per cent Government bonds to par in April 1941 opened up the possi- Ordinary receipts are estimated at 68.2 bility of a large conversion operation, covermilliard French francs. They cover about ing some 11.5 milliard French francs of pubtwo-thirds of ordinary expenditure and lic debt issued through the Credit National. nearly one-half of the total budget expendi- In spite of great differences Of economic ture. structure, of monetary conditions and of The considerable issue of Treasury bills is political experiences in 1940, certain broad reflected in the balance sheets of the three similarities in the developments may be perlarge banks, Credit Lyonnais, Societe Gene- ceived in the countries of south-eastern Eurale and Comptoir National d'Escompte). rope. Generally these countries lack organ- After considerable withdrawals in the ised money and capital markets according to second quarter of 1940 (reflected by the bor- western standards, the rate of savings is low rowing of the banks at the Bank of France) a and the use of bank notes is more widespread reflux of deposits took place at great intensity than cheques and bank deposits. Unbalanced in the period from July to September (when budgets, due largely to increased military stocks were largely sold out), according to the and other extraordinary expenditure (such 1126 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Annual Report of the Bank for International Settlements as the financing of clearing claims) has been pengo of its own notes against the equivacovered from market borrowing only with lent of Roumanian notes withdrawn from indifficulty, if at all. Recourse by the govern- corporated territory (some 5,120 million lei) ments to central-bank credit has thus been which are also shown in the outstanding cirfrequent and, in some cases, on a consider- culation of the National Bank of Roumania. able scale, with corresponding increases in Sweden and Switzerland have much in the note circulation (and in bank reserves common at the present time. Neutral in the with the central bank). Owing to differences war of 1914-18, the two countries, although of accounting, it is not always easy to say not involved in the present war, have spent exactly to what extent the recent expansions considerable sums upon defence. Both counin note issues are due directly or indirectly tries enjoy a similarly high national income to Government borrowing from the central and standard of living and have great finanbanks, but this is doubtless the predominant cial strength. A good idea of the centralinfluence in most cases. In some instances bank and market developments may be obwithdrawals of deposits from the commercial tained from the accompanying charts. and savings banks have led to considerable Both Sweden and Switzerland lost gold calls on the central banks for rediscounts and and foreign exchange almost continuously loans, but these phases have generally been from 1938 until the spring of 1940, when the temporary, continued Government expendi- trend was reversed: the efflux was proporture restoring liquidity to the economy. The tionately much more considerable for Sweden, following table gives the volume of note cir- especially from the outbreak of war, whereas culations since 1938, with 1929 and the sub-the reflux to Switzerland was far greater. sequent lowest depression point to form a Internal credit conditions in Sweden were background against which the magnitude of seriously affected at the time of the Finnishthe recent expansions may be judged. Russian war and the Riksbank intervened to meet Treasury requirements (in particular for payments abroad) and to assist the com- SOUTH-EASTERN EUROPE—NOTE CIRCULATIONS OF mercial banks subjected to a rapid with- CENTRAL BANKS drawal of deposits. In Switzerland the cash [In millions of national currency units] reserves of the banks were large and borrowing at the National Bank was not con- End m o o f n y t e h ar or g B a u ri l a - Greece H ga u r n y - m R a o n u i - a v S a l k o i - a Y sl u av g i o a - siderable (although it must not be forgotten that the profits on gold revaluations of 475 1929 3,609 5,193 501 21,144 5,818 million Swiss francs were distributed be- Lowest 1930-34 i____ 2,449 4,003 353 19, 605 4,327 1938 2,800 7,239 863 34, 902 6,921 tween the Confederation and the Cantons in 1939 4,245 9,454 975 48, 800 1,392 9,698 May 1940). In both countries the situation 1940 6,518 15, 369 1,387 64, 349 1,657 13, 834 March 1941 7,800 H8,116 3 1, 369 68, 886 1,568 2 14, 339 eased in the second half of the year, but the Percentage increase: note circulation in Switzerland (of which In year 1940 54 63 42 32 19 43 perhaps 400-500 million Swiss francs is In 2 years 1939-40 133 112 61 84 100 In 11 years 1929-40 81 196 177 204 138 hoarded abroad) continued to expand. The greater pressure on internal credit 1 Lowest end-of-year figure, i. e. Roumania 1930, Greece 1931, Hungary 1932, Yugoslavia 1933, and Bulgaria 1934. conditions in Sweden is also shown by the 2 Last return received: Greece, March 15, and Yugoslavia, March 22, 1941. rapid reaction of the Riksbank, which raised 3 By the end of May 1941 the note issue had risen to 1,734 million its rediscount rate three times by x/2 per cent pengo, of which 491 million pengo had been issued in incorporated territories in exchange for the notes of the former central banks: 85 million to reach 3^ per cent in the middle of May pengo against Czecho-Slovakian koruny, 215 million against Roumanian lei, and 191 million against Yugoslavian dinars. 1940 (two reductions of V2 per cent bringing the rate back to 2i/ per cent at the end of 2 In all these countries the note circulation May 1941). In Switzerland bank rate (which in 1940 was well above the 1929 figure, gen- has a great influence on mortgage rates in the erally two to three times higher (and three to country) remained unchanged throughout four times greater than the depression lows). the period at the very low level of IV2 per In all cases the expansion from the end of cent. The margin between short-term and 1938 has been rapid, accelerating in 1940. long-term rates was much narrower in Territorial changes have caused some dupli- Sweden than in Switzerland: the yield on cations, e. g., the National Bank of Hungary, Government securities, which in Sweden was on December 31, 1940, had issued 171 million barely over 2 per cent until the spring of NOVEMBER 1941 1127 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Annual Report of the Bank for International Settlements 1939, had risen to 414 per cent in April 1940; kronor per annum, of which over one-half in Switzerland the rise in the yield was more is to be covered by borrowing, issues of Govmoderate, from something over 3 per cent ernment bonds brought in 1,000 million durto 4^/2 Per cent on May 10, 1940, when the ing the year 1940, the most important being stock exchanges were temporarily closed. the 4 per cent 5-year Defence bonds, of which In both cases the yields of long-term Govern- 800 million Swedish kronor were issued, ment securities fell below 4 per cent before while 340 million new Treasury bills were the end of the year. placed, largely with the banks. In Switzer- Changing conditions on the money and land, where preparations for defence were capital markets naturally influenced the Gov- started in the years before the war, current ernments' borrowing policy to cover defence expenditure on defence works and mobilisaexpenditure. In Sweden, where defence ex- tion is at the yearly rate of nearly 1,000 milpenditure runs at about 1,800 million Swedish lion Swiss francs, mostly met by loans: during the year 350 million was obtained from 10-year bond issues (225 million at 3!/2-4 per cent in March and 125 million at S1/^ per Swiss National Bank Return cent in November 1940), 290 million Swiss in millions of Swiss francs francs from two issues of 3 to 4-year Treas- 3600 ury bills at 3%-3% per cent, 112 million from 3.6 per cent tax certificates (to anticipate receipts from the national defence "sacrifice" levy), while 250 million Swiss francs from the profits on the revaluation of the National Bank's gold holding in May 1940 were applied towards the amortisation of military expenditure. As for the experience in the United King- Sveriges Riksbank Return in millions of Swedish Kronor 2200 2000 1800 .Gold and Foreign Exchange (revalued > 1600 1400 1200 1000 800 600 400 200 0 B.R.U7S. 1938 1939 194-0 194-1 1938 1939 194-0 194-1 1128 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Annual Report of the Bank for International Settlements dom, the following table shows the develop- ury-bill issue. The accompanying chart of ment of the budget and public debt quarterly quotations of 3V2 per cent War loan shows over the last three financial years. the recovery of the market from the latter Revenue from taxation has risen particu- part of 1939, the weakness of May and June larly from the middle of 1940, owing to a 1940 (when the revised "minimum" price larger yield of old taxes (notably income tax was nearly reached) and the subsequent rise and certain consumption taxes) and the im- to new high levels with returning confidence, position of new ones (notably the excess when the opportunity was taken to float a profits duty, the national defence contribu- number of long-term loans. tions and the purchase tax) ; and in the finan- In the financial year 1939-40, 75 per cent cial year 1940-41 it was one-third above the of the budget deficit was covered by shortyear 1939-40. But expenditure has risen term borrowing and in 1940-41 only 54 per more steeply as the war effort intensified and cent of a deficit more than three times as in 1940-41 was over double the previous year. great. Long-term borrowing grew in im- The budget estimates for 1941-42 show still portance as the war continued. A new issue higher figures, revenue rising by nearly 380 of National savings certificates and a "savmillion pounds sterling to a total of 1,786 ings campaign" produced an increase of million. The estimate of expenditure is put Savings certificates at the rate of over 14 at 4,200 million but this figure excludes the million pounds sterling a month during the value of supplies obtained in the United fiscal year 1940-41; 3 per cent Defence bonds States. The Chancellor of the Exchequer ex- were placed "on tap" in November 1939 and plained that the figure comparable with the the issue continued throughout the period; actual expenditure of 3,867 million pounds a 3 per cent War loan for 300 million was sterling in 1940-41 would be "far beyond" floated in March 1940; 2% per cent National 5,000 million for 1941-42. War bonds were placed "on tap" in June 1940 The first long-term borrowing for defence and produced 440 million during the year, a was the 80 million pounds sterling 3 per cent further issue being made in January 1941. National Defence loan 1954-58 issued in June In the financial year 1940-41 as a whole nearly 1938. In 1939 the Government bond market 1,200 million pounds sterling new money was was weak and the bulk of the deficit financing raised at long-term, compared with 200 milwas made through an expansion of the Treas- lion in 1939-40. UNITED KINGDOM—PUBLIC FINANCES [In millions of pounds sterling] Budget Accounts (cash basis) Public debt increases or decreases (—) x Year and month Taxation E di x t p u e re n - 2 Deficit t L e m o rm n id g d - d a l e e n b - d t Fl d o e a b ti t ng Total ite O m t s h e (3 r ) 1938 April-June _. 132 235 103 13 93 106 (- 3) July-Sept 174 238 64 64 (- S) 61 + 3 Oct.-Dec 184 284 100 (- 1) 104 103 (- 3) 1939 Jan.-March 437 (+139)* (-17) (-116) (-185) (- 6) 1939 April-June 144 296 152 ( ) 156 154 (~ *) July-Sept 194 347 153 (- *) 160 158 (- 5) Oct.-Dec 206 542 336 41 299 340 (~ 4) 1940 Jan.-March 505 625 120 163 (-46) 117 + 3 1940 April-June 188 695 507 339 173 512 (- 5) July-Sept 264 915 651 184 474 658 (- 7) Oct.-Dec 299 1,098 798 310 490 800 (- ») 1941 Jan.-March 656 1,159 503 326 192 518 (-15) Financial years 1938-39. 927 1,055 128 59 78 137 (- 9) 1939-40 1,049 1,810 761 200 569 769 (- 8) 1940-41 1,409 3,867 2,458 1,159 1,329 2,488 (SO) 1 Nominal amounts. Movements as calculated from the annual national debt returns in March and from quarterly estimates. 2 Excluding sinking fund. 3 Other items producing agreement between the quarterly deficit and nominal movements of public debt, e. g. sinking fund, movements of Treasury cash balance, difference between nominal amount of loans issued and cash receipts, etc. 4 Surplus. NOVEMBER 1941 1129 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Annual Report of the Bank for International Settlements for cash (sterling), the Government raising Great Britain - Quotation of War Loan the money by increasing its borrowing. Doubtless one reason for the large increase of long-term lending to the Government in 1940-41 was the fact that previous owners of dollar securities mobilised during the year reinvested the proceeds, directly or indirectly, in Government (sterling) securities. The Chancellor of the Exchequer, in his budget speech in April 1941, said that, in round figures, Government expenditures in the first 18 months of war was 4,650 million pounds sterling, of which 2,000 million was met by taxation, 1,000 million from overseas resources, and the balance of 1,650 million by 90 borrowing. An interesting innovation in 1940 was the invitation to the banks to make direct sixmonth deposits with the Treasury. 430 million pounds sterling deposits bearing in- 85J FMAMJ J ASONO JFMAMJJASONO JfMAHJ JASOND terest at 1% per cent were outstanding at 1939 19*0 1941 the end of March 1941. The financing of the The balance of the budget deficit, some budget deficit was the outstanding influence 1,300 million pounds sterling, was covered on the banking system during the year, as by an increase in the floating debt by this the following table shows: amount to 2,800 million on March 31, 1941. The Treasury bill issue increased by 780 LONDON CLEARING BANKS' RETURNS million to 2,210 million on March 31, 1941, [In millions of pounds sterling] having doubled since the beginning of the war. Although the importance of the divi- Assets Liabilision of Treasury bills into those sold by ties "tender" (to the market) and those "on tap" Year and month Cash Treas- (to official and semi-official investors) has reserves Bills ury dediminished, it is not without significance that m a o n n d ey co d u i n s t - ed p r o e s - it I m nv e e n s t t s - Ad- p D os e i - ts tap bills have increased by 760 million pounds at call ceipts sterling on the year to March 1941 compared with a rise of only 110 million in the bills 1939 December i 444 334 609 1,002 2,441 1940 March 390 336 611 1,006 2,363 issued by tender. Some of these tap bills June 436 384 636 962 2,469 September 432 401 91 697 937 2,597 were probably held by the Unemployment December i 483 265 313 771 906 2,800 Fund, by Government insurance schemes and 1941 March 420 194 2 374 821 908 2,764 similar bodies but, in so far as they are held by Government offices as an employment for 1 December figures are given for the 31st of the month. Other returns surplus balances, the debt is due by one Gov-are on varying dates in the month. ernment department (the Treasury) to 2 Part of the total of 430 million pounds sterling outstanding at the end of March 1941 was held by other than clearing banks. another and not to the public. Tap bills have also been issued to the Exchange Equalisation On the year to December 1940 deposits Account against the disposal of the gold held have risen by 359 million pounds sterling, by the Account for foreign payments. In that is by 15 per cent, part of which, however, this way the budget deficit has been covered is due to the longer time taken for the colby the utilisation of existing monetary re- lection of cheques, owing to the physical inserves. The case is somewhat different with convenience under which the London market regard to mobilised dollar securities; here a operated, particularly in the second half of reserve'of the country as a whole has been the year. Bank credit granted to private, used, not a reserve belonging to the Govern- industrial, and commercial customers dement itself. The dollar securities were bought creased : advances fell by 96 million while the by the Government from the original owners number of commercial bills discounted doubt- 1130 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Annual Report of the Bank for International Settlements less declined (over nine-tenths of the bills ple, have been on tap at par since June 1940. in circulation being Treasury bills). More In February 1941 the legal maximum at bank credit has been granted to Government which the Government might borrow money contractors but less in other directions, par- was lowered from 5 to 3 per cent, a measure ticularly for the financing of foreign trade, taken in order to indicate that the authorities now largely in Government hands. Credit were determined to borrow at low rates all granted directly or indirectly to the Govern- through the war. ment grew considerably. Treasury deposit Stock exchanges.—The outbreak of the receipts and bills discounted (including war and the military events of 1940 have not Treasury bills) together were 244 million left the stock exchanges unaffected, though pounds sterling higher on the year, while in this field the divergence between the tend- "investments" (including Government se- encies in different countries has been remarkcurities) rose by 62 million. These figures able. Valuations of capital assets, which in should be related to the increase, in 1940, of normal times largely reflect movements in 1,091 million in the floating debt and 996 current profits and interest rates, tend under million in the long-term Government debt. present conditions to be based on more or The clearing banks appear to have taken less uncertain anticipations as to developrather over 300 million pounds sterling of ments in the years to come. Government issues exceeding 2,000 million, Almost all the stock exchanges displayed a say 15 per cent. weak tendency in the first five months of The expansion of clearing-bank deposits 1940; on May 10 the bourses were closed in in 1940 was accompanied by a rise of the Brussels, Amsterdam, and Zurich, and on banks' cash reserves at the Bank of England June 10 in Paris. Zurich was the first to by 20 million pounds sterling to 136 million. reopen, on July 8; Amsterdam came later in The Bank of England's return was also af- July and Brussels in August, while Paris fected by the increase of the note circulation opened for bond dealing in October but reby 60 million to nearly 620 million, almost mained closed for shares until March 1941. the whole increase taking place in the first There was a mild setback in Berlin in June seven months of the year. (reported to be due to the prospect of a short Money market conditions have continued war), while in London the slump which had very easy. Bank rate, which was raised for begun in March continued into July. All the a few weeks on the outbreak of war, has re- exchanges show rises of varying degree in mained since October 26, 1939, at 2 per cent, the second half of the year. In the spring of while the discount rate on Treasury bills, 1941 the share indexes for New York and which dominates the market, was steady in four of the European exchanges (London, 1940 at a shade over 1 per cent, falling in Zurich, Amsterdam, and Stockholm) were March 1941 to under 1 per cent for the first grouped around 75 to 90 per cent of the time during the war. While the weight of average for the year 1938. The indexes for money does not find an expression in the Treas- Berlin, Milan, Lyons, and Brussels were ury-bill rate, which, for technical reasons, is grouped around 150 to 180 per cent of the stereotyped, it affects the volume of applica- 1938 level—about twice as high as the fortions, which has been as high as 160 million mer group. pounds sterling for 65 million bills offered The most spectacular rise took place in by tender. Long-term rates are best ex- Brussels, where the share index more than pressed by the yield of representative Gov- doubled during the year 1940. The bourse ernment securities. The quotation of the 3!/2 was shut on May 10 and remained closed per cent War loan (a funded issue redeem- until August 21, when the bond market was able at the option of the Treasury only after opened, and from September 3 shares were 1952), which was 95 at the beginning of the gradually introduced. Various precautions year, giving a flat yield of 3.7 per cent, rose were taken, particularly the prohibition of above par in April and, after a setback in forward markets, the placing of all dealing June, gradually strengthened to 105 in March upon a cash basis and the fixing of "just 1941, with a flat yield of 3.3 per cent. Shorter- quotations" some 15 per cent above those term issues and loans with fixed maturity ruling before the closing in May. But further dates gave lower yields and 2^ per cent rises had to be allowed and by February 1941 National War bonds of 5-7 years, for exam- the "Amens" Index was 100 per cent higher NOVEMBER 1941 1131 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Annual Report of the Bank for International Settlements than in May. The President of the Stock The Amsterdam bourse, after a weak trend Exchange Commission issued an order in in the first months of the year, was shut on the middle of March 1941 prohibiting in- May 10, 1940, and reopened gradually from creases of quotations by more than 1 per July 15 onwards, at first for Government cent a day. About two weeks later a rise bonds and, after the establishment of rates of 2 per cent daily was permitted. in unofficial dealing, for shares with official The Paris bourse was shut on June 10, quotations. The opening was firm and in the 1940 (four days before the entry of German following months all securities previously troops) and, except for an unsuccessful trial quoted were listed for dealings, including during a few days at the end of July, not American shares (generally Dutch ceropened again until October 14. On the re- tificates) and German bonds and shares. opening, quotations were confined to rentes Some Dutch shares, especially those of comand other Government paper and to industrial panies with foreign interests, showed exbonds; there remained no official market for traordinary rises from the low levels to which shares in the occupied zone until the rein- they had previously fallen. The abolition of troduction of shares in Paris on March 19, exchange regulations between Holland and 1941. Germany on April 1, 1941, opened the Am- With Paris closed or restricted in scope, sterdam market to German purchasers withthe importance of the provincial markets in out restriction and a considerable rise in the unoccupied zone increased, especially in quotations ensued. Marseilles and Lyons. The Lyons bourse had At the end of 1940 the share index was been opened on August 27 for both bonds and some 50 per cent above the closing figure in shares and, after some initial weakness, a bull May but still somewhat below the 1938 movement set in, with particular attention average. American shares were quoted well paid to shares of electrical and chemical above the New York parities, partly, but by works in the unoccupied zone (less subject to no means wholly, for the reason that diviraw-material difficulties than some others), dends were included in the price, owing to as also of industries directly or indirectly the impossibility of transfer. From May 1, having colonial or foreign interests. A num- 1941, the official quotation of American share ber of shares doubled in price during the bull certificates was suspended. movement. By March 1941 the yield of many The Swiss bourses started the year weak shares was down to about 1 or 2 per cent. and after a rather sharp decline were closed Rentes were also strong but, owing to the from May 10, 1940, at the wish of the Naimpossibility of arbitrage, considerable dif- tional Bank, while outside dealings between ferences of quotations developed between banks were restricted. On July 1 unofficial Paris and the provincial markets. The rise in dealings on the exchanges were permitted exrentes was checked at the end of the year perimentally and on July 8 the official opening but was resumed in the new year, when yields was made. Share trading was resumed, free were reduced to about 4!/2 per cent. of restrictions, while minimum prices, 5 per Besides the regulation of technical ques- cent under those of May 9, were introduced tions as to cash payments and prior delivery for Government bonds. But the bond market of securities, special measures were taken, was firm and the share market quiet; the to enter into force on the opening of the Paris share index finished the year 1940 about 10 share market in March 1941, for the purpose per cent below the end of 1939 but showed a of checking an exaggerated rise in share sustained rise in the first months of 1941. values and suppressing illegitimate markets: Of the stock exchanges that remained open shares were to be delivered only in registered throughout 1940, those of Milan and London form (or deposited with a bank or stock- showed the most considerable fluctuations, broker), single daily quotations were fixed Milan, however, ending nearly 20 per cent and fluctuations beyond 5 per cent in one higher and London over 20 per cent lower on day were not permitted, etc. Foreign securi- the year. Milan quotations rose sharply on ties and the securities of French companies the outbreak of war in September 1939 and, operating abroad might not be quoted in after some hesitation in November, upon the Paris (though dealt in at Lyons). The im- introduction of the capital tax, finished the mediate result of these measures was a sharp year strongly. In the first months of 1940 contraction in the turnover. a setback was experienced, due in part to a 1132 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Annual Report of the Bank for International Settlements new tax on stock exchange profits, and ac- culated average yield for all shares dealt in centuated in May through the imminence of (some 450-470 issues including about 50 non- Italy's entry into the war and fears of a mora- dividend-paying) fell below 5 per cent in torium and of the closing of the exchanges. December 1939, below 4i/2 per cent in March With the beginning of hostilities, the upward 1940, and below 4 per cent in September movement once more gained ground, carry- 1940; early in 1941 it was 3% per cent. ing the index in December 1940 to a new high, In all cases where stock exchanges have but temporary, peak. A sharp reaction was been reopened after an abrupt close, special caused by the imposition of special taxes and measures have been taken regarding uncomrestrictions on dividends, but when these pleted forward contracts, outstanding loans were relaxed in March 1941, the December on securities, and similar technical matters, peak was again exceeded. In March 1941 in order to facilitate dealings. In addition to the yield on most shares was reckoned at the factors which tend indirectly to weigh on about 3 per cent compared with over 5 per share quotations (war damage, heavy direct cent on Government bonds. taxation, limitation of dividends, etc.) gov- The London stock market was buoyant ernments or stock-exchange authorities have from the outbreak of war up to March 1940, found it necessary to take measures to check when a landslide started which, by the end unwarranted price rises and the development of June, had carried the index down by more of black markets. Generally, stock exchanges than 30 per cent. From this point a slow have been reopened first for bonds and later but steady recovery raised quotations, so for share dealing, introduced by degrees—in that at the end of January 1941 one-third of Paris only after five months. Other measthe loss had been regained. London share ures may be summarised as follows: prices remained depressed, however, by the (a) dealings only for cash and no forward weight of direct taxation (in addition to inmarkets (general) ; come tax at 42 V2 per cent, a 100 per cent ex- (b) verbal warnings, official or semi-officess profits duty was imposed in 1940), while, cial, against exaggerated rises of quoin some cases, difficulties of valuation have tations (in several instances) ; made cautious quotations desirable. (c) the fixing of minimum prices (Oslo) ; Between the outbreak of the war and the (d) fixing of maximum price rises for any end of 1940 the index of share quotations on single day (Brussels and Prague) ; the Berlin bourse rose by 40 per cent. Tak- (e) fixing of maximum quotations (the ing advantage of the strong markets, the "price-stop" in Vienna) ; Prussian State Bank (Seehandlung), which (f) fixing of one quotation a day (Paris) ; had the trusteeship of the shares accepted by (g) prohibition on dealing outside the the Reich in payment of the tax on Jews in stock exchange at prices higher than November 1938, continued its sales, and at the official quotation (Prague) ; the end of 1940 there remained only a very (h) prohibition of publication of unsatsmall unsold balance. In view of market conisfied "bid" prices (Brussels and ditions it was decided to reintroduce the so- Prague); called "speculation tax" (really an income (i) prohibition of use of securities as coltax on profits realised on the sale of shares lateral for stock exchange loans within one year of purchase), which had been (Brussels and Paris) ; in abeyance for two years. (j) making all shares transferred nomina- Two reasons for the rise in share quotative and thus prohibiting dealing in tions in Germany may be mentioned: the fall bearer securities (Paris). of long-term interest rates and the narrowness of the share market in the face of an in- It is interesting to note that in the northcreased demand. The rate of interest on ern countries minimum prices were intronew issues of Reich loans was reduced from duced for both bonds and shares and that in 4i/2 per cent at the end of 1939 to 3^2 per Switzerland a minimum for Government cent early in 1941, the yields falling accordbonds only was fixed (somewhat on the lines ingly. The average yield on all Reich loans of the policy adopted in England on the outoutstanding was, of course, somewhat higher. break of war). With the market strong, the decline of share As stock markets decline, so bond markets yields was more rapid. The officially calgain in importance, not only relatively but NOVEMBER 1941 1133 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Annual Report of the Bank for International Settlements usually in absolute volume and in turnover ing of stock exchanges or in other ways. The also. The growing significance of the bond events of 1940 showed how every effort was markets, especially for government obliga- made to avoid moratoria and how bond martions, is a result of the more active part kets were kept open or rapidly reopened, even played by governments in the economy of cer- in the midst of catastrophe. tain countries in recent years and by all gov- It is an ironical fact of the present times ernments in time of war. But the increase that the destruction of national wealth of the public debt is often offset to a greater through warfare is facilitated by the creation or lesser extent by the repayment of private of more "liquid claims", in the form of Govindebtedness. This shift from private to ernment bonds, to the aggregate wealth that public indebtedness (on the stock exchange remains. In England, the compulsory insurfrom shares to bonds and in the banks from ance against war damage has been introduced advances to "investments") is accentuated not only to ensure an equitable distribution in wartime, when, indeed, the growth of the of sacrifice but also to preserve the complex public debt may well outrun the decline of structure of debts and claims which has been private indebtedness. The growth of the erected. The volume of Government indomestic public debt in England has produced debtedness is everywhere growing both abin the London stock exchange a bias towards solutely and in relation to the national bonds which is expressed in the fact that the wealth, and important problems will call for 2,000 million pounds sterling 3^ per cent solution in the post-war period when work- War loan is the real "market leader" (in con- ing capital and other funds invested temtrast to the New York "market leaders", porarily in Government securities are wanted which are still thought of as the stocks of for their normal purposes. outstanding corporations). The growth of Government debts in recent CENTRAL BANKING DEVELOPMENTS years has a striking parallel in the growth in Many important factors relating to central importance of small sayings invested through banking activity during the year have already savings banks, life assurance companies, sobeen mentioned earlier in this Report, especial insurance funds, and similar institutions, cially in the sections on exchange rates and which, having their liabilities expressed in on government finance, money, and capital fixed monetary sums, prefer to invest in bonds markets. At the beginning of the war, or with a fixed nominal amount and maturity shortly afterwards, nearly all European cendate. This is true of the United States, Engtral-bank statutes were modified to give land, Germany, and certain other countries, greater elasticity for direct lending to the and is well illustrated by statistics recently governments and to allow the release of gold published in Germany showing that over half and foreign exchange for foreign payments the bonds outstanding in Germany are held without a contraction of the note circulation by institutions, against about one-tenth beor of bankers' cash, and further steps in this fore the war of 1914-18. direction were taken in 1940. The advent of Government securities, long and short, are war, indeed, brought.an expansion of cenbecoming the preponderating investment of tral-bank credit in most European countries commercial and savings banks, of life assurfor the needs of the Government and, at times ance companies, and social funds almost of emergency, to cover withdrawals of dethroughout the world. Another aspect of the posits by the public from the other banks. relative decline of business and other private The growing liquidity of the markets as a borrowing is the profound change in the result of Government spending occasioned structural form of the total indebtedness, considerable repayments of private credit particularly in relation to the underlying previously granted by both the central and assets. In other words, there is a change the commercial banks, but note circulations from the more or less illiquid private loan, continued to rise, in some cases with inbank advance, or direct mortgage to the comcreased rapidity. paratively liquid Treasury bill or "shiftable" Modifications were made in the laws and obligation (i. e. saleable on a regular market). statutes governing the activity of central Governments cannot for long allow "liquid banks to allow further direct lending to the claims", especially in the form of Government Government in France and Algeria, in Bulsecurities, to become illiquid through the closgaria, Turkey, Greece, and Roumania dur- 1134 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Annual Report of the Bank for International Settlements ing 1940. By two Conventions of February of the Bank to draw up temporary rules re- 29 and June 9, 1940, the amount of provi- garding these operations so long as the "exsional advances granted by the Bank of ceptional circumstances" obtained. France to the Government was raised to As regards gold reserves new laws were 70 milliard French francs, a limit which passed in 1940 and revaluations were made was nearly attained early in October but n France (February), Holland (March), which has not been exceeded. On August Roumania (April), and Switzerland (May), 25, 1940, a special advance was granted by in each case the book profit going largely, if the Bank of France to the Government to not wholly, to the Government to cover decover occupation costs, the total of permis- fence and other expenditure. In the Protecsible advances on this account being succes- torate of Bohemia and Moravia the gold sively raised to 108 milliard in May 1941. price was lowered when the exchange was The Bank of Algeria was authorised by a adjusted upwards to the Reichsmark at the law of December 31, 1940, to place at the disend of September: the gold reserve of the posal of the French Government a further National Bank was written down in value, advance of 1 milliard French francs and an special measures being taken to deal with the advance of 50 million to the Government of book loss of 207 million koruny. A change Algeria, the legal maximum of the note cirwas made in the law governing the Sveriges culation being raised at the same time from Riksbank, which had previously limited the 5 to 7 milliard. gold holding of the Bank eligible as primary Further resources for Government credit reserve to the gold held in Sweden, plus gold were given in Bulgaria by a law of March held abroad or in transport up to 15 per cent 9: the National Bank had previously been of the total reserve. By a royal ordinance authorised to place an amount not exceeding of January 31, 1940, the gold reserve of the 20 per cent of its paid-up capital and reserves Bank now constitutes all gold and bullion in Government or Government-guaranteed held by Sveriges Riksbank, wherever its locasecurities. The new law authorised the Bank tion. Further, while the gold reserve remains in addition to invest a sum not exceeding 140 in the books at par value, market value has per cent of its paid-up capital and reserves in been taken for the calculation of cover re- Treasury bonds maturing in, at most, seven quirements since that time. years, issued to foreign firms in payment of Modifications of laws and statutes have Government supplies. A law of May 30 aualso been made during the year with regard thorised the Turkish Treasury to contract extraordinary advances from the central bank to the internal administration of the central to the extent of 250 million Turkish pounds. banks in Roumania (March 29), Yugoslavia The legal limit for the temporary advances (September 14), France (November 24), and of the Bank of Greece to the Greek Govern- the French colonial banks in Indo-China, ment was raised from 400 million drachma Madagascar, and French West Africa, as to 1,000 million by a law of October 18, 1940.well as the Bank of Algeria. In Roumania, by a decision of the Council The most interesting of these changes were of Ministers dated March 29, 1940, the Na- those affecting the Bank of France. The retional Bank's powers were widened as re- form of 1936 maintained the principle of the gards the granting of credit to agriculturists Bank's fundamental statutes of 1808 that the as well as to the Government. The limit on direction of the affairs of the Bank should be the discount of agricultural bills up to nine exercised by a governor appointed by the months' maturity, previously fixed at 40 per state and assisted by two deputy governors. cent of the bill portfolio, was removed. But that reform replaced the fifteen regents Further, the discounting of Treasury bills by of the Bank (elected by the two hundred private persons had been limited to 20 per largest shareholders) by a General Council cent of the Bank's capital, and advances or of twenty members, of which only two were overdrafts on Government or publicly-guar- elected by the shareholders, nine representanteed securities to 30 per cent of the bill ing economic and social interests (six chosen portfolio, while the purchase of Government by the Government) and nine the collective or Government-guaranteed securities was interests of the nation, chosen from amongst limited to the total of the capital and reserves. the highest officials. The new law of Novem- The new law authorised the General Council ber 24, 1940, allows this organisation to con- NOVEMBER 1941 1135 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Annual Report of the Bank for International Settlements tinue but reduces the number of councillors (a) Temporary legal and other arrangefrom twenty to eleven: three chosen by the ments were made regarding the removal shareholders, four by the Government from of offices and administration in times of among representatives of commerce, indus- emergency, and in some instances actual try, and agriculture, three persons with of- removals took place. ficial positions (the Director of the Caisse (b) Numerous exchanges of bank-notes des Depots et Consignations, the Governor and other means of payment have been of the Credit Foncier, and the Director-Gen- made in attached and occupied territories, eral of the Credit National), while one coun- generally involving changes of bookkeepcillor is chosen from the personnel of the ing into the new currency. In the occupied Bank. Thus, although the number of coun- territories arrangements have been concillors is reduced, the shareholders are better cluded, making the national currency availrepresented and there are no longer any able to the occupying authorities and proofficials representing the various services of viding for the withdrawal of previously the Government. Similar administrative re- issued Reichskreditkassenscheine. These forms were made at the same time to the central banks work with the supervision of Credit Foncier and the Credit National, in a German Commissioner appointed by the both cases only the highest executive being occupying authorities. the representative of the state. (c) Foreign exchange regulations have Three European central banks suspended generally been made watertight and in operations in 1940 when the Baltic States many cases adapted to the German model. were attached to the U. S. S. R. and the rouble In Roumania the premiums given for gold currency introduced. A new Bank of Issue produced in the country and sold to the in Brussels was constituted on June 27, 1940, National Bank have been changed. As by a decree of the German Military Com- European gold reserves are now mostly mander for Belgium and Northern France. held outside Europe and foreign exchange The Bank, which is a joint-stock company reserves in sterling and dollars are largely under Belgian law, has a capital of 150 mil- unavailable, the importance of the Reichslion Belgian francs (subscribed by the Bel- mark holding has considerably increased gian commercial banks). The Bank's statutes for certain central banks, not only in volfollow the general line of central-bank law ume but in turnover. modified by the conditions of its creation. (d) Numerous new bilateral clearing The Bank is authorised to issue notes ex- and payments agreements, either through pressed in Belgian francs which, if issued, the central bank or through an associated would be legal tender; but, as already men- institution, have been made during the tioned earlier in this Report, no bank-notes year. Of particular practical importance has been the mobilisation of clearing "Spithave been issued—the Issue Bank having bezen" through central-bank credit. come in practice the banking department of (e) Mobilisations of foreign securities the National Bank, entrusted particularly have taken place, as also the registration with relations with the occupying authorities, and management of enemy property and, the management of the clearings and the acin occupied territories, the property of the counts of the Reichskreditkassen, while the enemies of the occupying authorities (as postal cheque accounts have also been transwell as the restitution of the property of ferred to it. The creation of a new central the occupying authorities or their nationals reserve bank in China has been mentioned previously placed under supervision). previously in this Report. (f) Small notes have been issued in some Though actual changes in the laws and cases to supplement the coinage, while statutes governing central banks have not nickel and bronze coins have been withbeen numerous during the past year, measdrawn (involving the disappearance of the ures taken affecting central banks directly well-known French "sou"). or indirectly in an administrative or other capacity have far exceeded the experience of The Reichsbank in particular has been recent years. It is only necessary to mencalled upon for numerous administrative and tion some of the tasks carried out by central other tasks. The Reichskreditkassen, which banks to indicate the wide field covered. closely followed the German army in the 1136 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Annual Report of the Bank for International Settlements field, were manned by Reichsbank personnel influences were operative in some cases: the (although the institutions were, of course, increase of foreign hoarding of Swiss notes completely separate) and the management of from 1931 onwards, the rise in the price of the circulation of Reichskreditkassenscheine gold in South Africa from 1932 and, for Gerand their withdrawal were thus supervised many, the increase of territory, especially the by Reichsbank staff. Reichsbank notes, incorporation of Austria and the Sudeten which had previously been issued in the Saar areas in 1938, should be mentioned. The ac- (February 1935), Austria (March 1938), celeration of the increase in the volume of the Sudeten territory (October 1938), Memel notes in circulation in the last two years is in (March 1939), Danzig (September 1939), European countries to be associated with the and the incorporated territories of Poland war: in part a result of the direct or indirect (November 1939), were issued during 1940 in Eupen, Malmedy, and Moresnet (June), 1929 1930 1931 1932 1933 1934- 1935 1936 1937 1938 1939 and in Alsace, Lorraine, and Luxemburg (August). Not only were Reichsbank notes introduced in these cases but bookkeeping and other accounts were changed over into Index of Reichsmark. NOTE CIRCULATION One feature of central bank balance sheets in National Currencies has been common to all countries—the in- On base 1929 = 100 crease of the note circulation, particularly End of year figures during the past two years. The accompanying chart gives end-of-year index figures for eleven European and three overseas countries. Certain European countries have been omitted from the statistics for lack of recent data, e. g., Italy, Spain, and Norway, and others owing to the incomparability of the data, e. g., Czecho-Slovakia. A warning must be uttered regarding too close a comparison. Changes in gold values have been considerable but the movement of prices, particularly retail prices and wages, in the countries concerned is probably the most realistic criterion, and it should be remembered that for nearly all of the countries shown in the chart retail prices were, on the average of 1940, below the level of 1929 (the important exception being Japan with a 40 per cent increase). The fact that only the note circulation of the central bank has been used for the indexes, except for the United States where all "money in circulation" has been taken, does not invalidate the chart; generally the increase of the circulation of coin is not disproportionate to the rise in the issue of notes. The main reasons for the increase of note circulations over the last few years were mentioned in the last Annual Report. Higher amounts paid as wages and spent on consumption goods, larger amounts carried as cash by the individual or held as reserves by commercial banks and other institutions, and an increase of hoarding, affected perhaps by the low rates paid on deposits, are among 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 the most important general factors. Special 8.R.I.447. NOVEMBER 1941 1137 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Annual Report of the Bank for International Settlements financing of the Government by the central able change has been the increase in the bank, in part a reflection of a higher demand "other sight liabilities," particularly the refor liquidity by the public. The lower velocity serve balances of the member banks. The in the agricultural sector of the economy cash basis thus exists for a considerable ex- (which has had its income position improved pansion of member-bank deposits through in many countries) must, however, be taken the purchase of securities or other credit opinto account. Moreover, it is probable that erations. This relative increase of the cash mobilisation increases the need of actual reserves of commercial banks is a feature of cash. For these and other reasons the rise developments in a number of countries other in note circulation is generally higher than than those shpwn in the table, e. g. Finland, the increase in "money incomes" and cannot Holland, Belgium, Denmark, etc. and appears in itself be taken as the measure of an infla- to show for these countries the tendency for tionary expansion. Almost without exception superfluous central-bank credit to return via note circulations have risen since 1929 more the commercial banks and to be held, at least than deposits held at commercial banks, while for the time being, as surplus deposits rather "the other sight liabilities" of the central than as notes. banks (especially the reserve balances of In Germany also, the "other sight liabilicommercial banks) have shown highly vary- ties" at the Reichsbank have risen rather ing movements. more than the note circulation and, as in The following table shows the relation- the other countries mentioned, this is an inship between the note circulation of the dication of the liquidity of the market. The central bank, the total of "other sight liabili- apparent relative fall in the volume of comties", and the total deposits and current ac- mercial bank deposits compared with the counts with the commercial banks for the note issue must be read in the light of the years 1929 and 1940, and the percentage in- large volume of foreign deposits in 1929 crease over the eleven years in the United which had been withdrawn before 1940. The States and in three European countries. For French situation is remarkable in that dethe United Kingdom there is a remarkable posits with the three big banks fell from half stability in the relationships, each of the of the volume of the note circulation in 1929 three items having risen over the eleven to about one-quarter in 1940, when the deyears by about one-half, the total of the posits of all the banks in the country would clearing banks' deposits remaining between certainly have amounted to considerably less 414 and 5 times as great as the note circula- than the total note issue. tion. For the other countries important To obtain a complete picture it would natchanges in the relationship are noticeable. urally be desirable to trace the changes in For the United States the money in circula- the relationships shown in the tables through tion has nearly doubled, rising rather faster the years and to consider other factors such than total deposits with the member banks. as the volume of savings deposits. But the For this country, however, the most remark- table brings out the fact, which is confirmed CENTRAL BANK NOTE CIRCULATIONS AND RELATED FACTORS [End-of-year figures] U. S. A. France Germany United Kingdom 1929 1940 1940 1929 1940 1940 1929 1940 1940 1929 1940 1940 as per- as per- as per- as per- Millions of dollars c o e f n t 1 a 9 g 2 e 9 Millions of francs c o e f n t 1 a 9 g 2 e 9 R M e i i l c l h io s n m s a o r f k c o e f n t 1 a 9 g 2 e 9 po M un il d l s io s n t s e r o li f ng c o e f n t 1 a 9 g 2 e 9 Central Bank: Note circulation 4,578 8,732 191 68, 571 218, 383 318 5,044 14, 033 278 380 616 162 Total "other sight liabilities". 2,414 16,126 668 19, 587 1 28,187 144 755 2,561 339 160 251 157 Commercial Banks: Total deposits and current accounts 33, 865 46,007 136 2 32, 682 2 58, 448 179 21, 753 3 34,000 156 1,889 2,800 148 1 Without Reichskreditkassen accounts. 2 Three large banks: Credit Lyonnais, Comptoir National, and Socie'te1 Ge'ne'rale. 3 Estimated 33-35,000 million Reichsmark. 1138 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Annual Report of the Bank for International Settlements by calculations for other countries, that gen- and total receipts from taxation and borrowerally the rise of note circulations has been ing of 60,000 million. In both cases direct more rapid than the increase in the volume advances from the central bank did not exof bank deposits in recent years, even in ceed 2 per cent of annual budget expenditure. countries such as the United States, where Indirect government borrowing and other the cheque habit is well developed. influences are, however, also of importance In time of war the central banks, as the and, in the end, the currency system will ultimate source of liquidity, are naturally ex- only escape comparatively unscathed where posed to heavy strain. In this connection it internal war financing is effected from curis pertinent to point out that both in the rent taxation, and through the borrowing of United Kingdom and in Germany direct bor- genuine savings. No doubt, dangerous derowing from the central bank has been on a velopments are scarcely concealed in many very small scale and utilised only to even countries and, if they are not arrested, the out temporary irregularities of receipts and task of setting right currency troubles when expenditures. In the calendar year 1940 the the war is over will be far from easy. In published statistics show the direct advance wartime it is inevitable that central banks, of the Bank of England to the Treasury at as indeed all other institutions, must come its highest point of 50 million pounds sterling largely under government control and parin December, compared with an average note ticipate to their utmost in the effort of their circulation of 580 million and total budget countries. But their principal contribution expenditure of 3,300 million: similarly, the even then should be to uphold fundamental working credit granted by the Reichsbank principles, the non-observance of which to the German Government touched 685 mil- would not only render post-war reconstruclion Reichsmark in June compared with an tion and adaptation more difficult but might average note circulation of 12,200 million also impair the war effort itself. NOVEMBER 1941 1139 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

/rational Su.mm.atu o"k Bu5lnc55 (condition* Compiled October 17 and released for publication October 20. Figures shown on charts may differ from preliminary figures used in text. INDUSTRIAL activity continued at a high seasonally in September, following the rate in September and the first half of Oc- changeover to new models, and, according tober. Further advances in the output of to preliminary estimates, output in Septemdefense products were accompanied by cur- ber was considerably below the maximum tailment in some lines of civilian goods, par- quota that had been authorized by the Govticularly automobiles, rubber, and silk. Prices ernment. of industrial products increased further but In the textile industry activity declined agricultural prices declined after the middle somewhat in September, reflecting mainly a of September, and on October 16 dropped further sharp reduction at silk mills. Acsharply in response to international develop- tivity at wool mills rose to a new high level, ments. while at cotton mills there was little change from a rate slightly below the peak reached Production last May. Shoe production continued in Industrial output increased by about the large volume, and output of manufactured usual seasonal amount in September and the food products was maintained near the peak Board's adjusted index remained at 160 per August level. Output of chemicals likewise cent of the 1935-1939 average, the same as continued at earlier high rates, but at rubber in July and August. Continued increases in plants activity was considerably below the activity were reported in the machinery, air- level of last summer owing to curtailment craft, and shipbuilding industries. At steel programs ordered by the Government. mills activity in September and the first half Coal production, which during the summer of October was maintained at about 97 per months had been unusually large, increased cent of capacity. Output and deliveries of less than seasonally in September, owing in nonferrous metals likewise remained at about part to temporary work stoppages at some capacity levels, while lumber production de- bituminous and anthracite mines. Crude clined somewhat from the high August rate. petroleum production advanced to record Automobile production increased less than levels in September and the first half of Oc- INDUSTRIAL PRODUCTION WHOLESALE PRICES OF BASIC COMMODITIES 1935 1936 1937 1938 1939 1940 1941 Federal Reserve index of physical volume of production, ad- Bureau of Labor Statistics' indexes based on 12 foodstuffs and justed for seasonal variation, 1935-1939 average = 100. By months, 16 industrial materials, August 1939 = 100. Thursday figures, January 1935 to September 1941. January 3, 1935 to October 23, 1941. 1140 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

National Summary of Business Conditions tober, and output of metals and shipments department stores declined from the peak of iron ore down the Lakes continued at reached in late September when there were about capacity. considerable consumer purchases, particu- Value of construction contract awards de- larly of articles subject to higher taxes on clined in September, according to figures of October 1. the F. W. Dodge Corporation, reflecting Loadings of revenue freight in September chiefly decreases in awards for public proj- increased less than seasonally, particularly ects which had been exceptionally large in those of miscellaneous freight, which have August. Awards for private residential been high in recent months, and loadings of building also declined, while contracts for coal, which were curtailed during part of the other private work increased somewhat month by work stoppages at some mines. further. Total awards in September, as in Shipments of forest products declined con- August, were 80 per cent larger than in thesiderably from the high August level. corresponding period last year. This higher Commodity Prices level reflected mainly a greater amount of public construction, which was nearly three Prices of industrial products continued to times as large as a year ago, compared with advance in September and the first half of an increase of about 10 per cent for private October and Federal price ceilings were anconstruction. nounced for additional commodities, includ- On October 9, the Supply Priorities and ing leading types of lumber, coke, wastepaper, Allocations Board announced that, effective paperboard, acetic acid, alcohols, and carded immediately, no public or private construc- cotton yarns. In some cases these ceilings tion projects which use critical materials were below previously existing market quocould be started during the emergency unless tations. Price advances were permitted, these projects were either necessary for di-however, for some other commodities under rect national defense or essential to the Federal control. Prices of cotton and of health and safety of the nation. foodstuffs increased further in the first half of September, but subsequently declined, ow- Distribution ing partly to seasonal influences. On Thurs- Distribution of general merchandise day, October 16, prices of these commodities showed less than the customary seasonal rise dropped sharply. in September, following an unusually large Bank Credit volume of sales in August. During the past three months sales have been larger than in Commercial loans at member banks conthe corresponding period of any previous tinued to rise during September and the first year. In the first half of October sales at half of October, reflecting in part defense demands. Increases were substantial both in New York and in other leading cities. DEPARTMENT STORE SALES AND STOCKS Holdings of United States Government obligations decreased, mainly at banks in leading cities outside of New York. Excess reserves of member banks showed little change in this period. United States Government Security Market Following a slight decline in the first half of September, prices of long-term Treasury partially tax-exempt bonds increased during the latter half of September and in the first part of October. The yield on the 2% per cent bonds of 1960-1965 reached a new record low of 2.01 per cent in October. Prices of 1935 !936 1937 1938 1939 1940 taxable bonds moved within a relatively nar- Federal Reserve indexes of value of sales and stocks, adjusted row range during the period with yields for seasonal variation, 1923-1925 average = 100. By months, Jan- slightly above previous low levels. uary 1935 to September 1941. NOVEMBER 1941 1141 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 24 24 MEMBER BANK RESERVE BALANCES TREASURY CASH AND DEPOSITS . 1935 1936 1937 1938 1939 1940 1941 10 10 - - REQlJ1RED RESERVES ^~ f ryf - 2 , I EXCESS RESERVES 2 f \r fm*T 0 0 1935 1936 1937 1938 1939 1940 1941 Latest figures for October 22. See page 1144. 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 1144 Federal Reserve Bank discount rates; rates on time deposits, reserve requirements, margin requirements 1145 Federal Reserve Bank statistics 1146-1150 Reserve position of member banks; deposits in larger and smaller centers. 1151 Money in circulation 1152 Gold stock and gold movements; bank suspensions; bank debits 1153 All banks in the United States, number, deposits, loans and investments. 1154 Condition of all member banks. 1155-1156 Weekly reporting member banks 1157-1160 Commercial paper, bankers' acceptances, and brokers' balances. 1161 Money rates and bond yields. 1162 Security markets 1163 Treasury finance ... 1164-1166 Governmental corporations and credit agencies; Postal Savings System 1167-1169 Business indexes 1170-1180 Department store statistics 1181 Wholesale prices 1182 Current statistics for Federal Reserve chart book 1183-1185 October crop report, by Federal Reserve districts 1185 Member bank earnings. 1186 Industrial Production—Major divisions and selected groupings expressed as points in total index 1187-1189 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 BUL- LETIN 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. NOVEMBER 1941 1143 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- u T r r y e a d s e - - Other ba b n a k l a r n e c s e e s rve TJ. S. Government ury Treas- posits Non- Fedsecurities cur- Money ury with mem- eral Date All Gold rency in cir- cash Fed- ber Re- Bills other stock out- cula- hold- eral de- serve co d u i n s- ted Total t w M u i r t a i h n - - g t a M u f r t a i e n - r g R c B r e e s a d e n r i k t ve Total st i a n n g d- tion ings B s R e a r e n v - k e s posits co a u c- nts Total c E e x- ss1 in 5 5 years years Monthly averages of daily figures: 1940—July 2,450 1,202 1,247 63 2,515 20,260 3,017 7,884 2,206 391 1,316 261 13, 735 6,752 Aug 2,444 1,201 1,244 57 2,505 20,718 3,028 7,967 2,277 885 1,451 262 13,408 6,407 Sept 2,434 1,191 1,243 64 2,503 21,064 3,040 8,095 2,287 781 1,535 265 13,643 6,582 1941—July. 2,184 951 1,234 111 2,298 22,651 3,156 9,670 2,303 949 1,774 289 13,120 5,193 Aug 2,184 951 1,234 92 2,284 22,700 3.173 9,839 2,360 829 1,839 286 13. 004 5.017 Sept 12 2,184 951 1,234 101 2,297 22,740 3,188 10,061 2,379 476 1,836 13,184 5,116 End of month figures: 1940—July 31 2,448 1,202 1,246 32 2,484 20,463 3,024 7,883 2,250 694 1,382 262 13,498 6,514 Aug. 31 2,436 1,192 1,244 76 2,515 20,913 3,036 8,059 2,277 810 1,516 261 13, 541 6,525 Sept. 30 2,434 1,191 1,243 46 2,485 21, 244 3,044 8,151 2,290 756 1,581 269 13, 727 6,655 1941—July 31 2,184 951 1,234 104 2,293 22,675 3,166 9,732 2,334 877 1,752 287 13,151 5, 215 Aug. 30 2,184 951 1,234 80 2,275 22, 719 3,181 9.995 2,376 906 1,821 284 12, 794 4.796 Sept. 30 2,184 951 1,234 2,264 22, 761 3,198 10,163 2,281 423 1,838 292 13, 227 5,169 Wednesday figures: 1940—Dec. 4 2,195 1,020 1,176 67 2,266 21,827 3,074 8,569 2,204 255 1,708 278 14.154 6,816 Dec. 11 2,184 1,020 1,165 51 2,241 21, 858 3,077 8,625 2.197 235 1,687 279 14,152 6,785 Dec. 18 2,184 1,048 1,136 117 2,306 21,898 3,081 8,716 2,204 570 1.702 13, 804 6,395 Dec. 24 2,184 1,048 1,136 149 2,336 21,930 3,082 8,817 2,213 481 1,711 13,837 6,438 Dec, 31 2,184 1,048 1,136 88 2,274 21,995 3,087 8,732 2,213 368 1,732 284 14,026 6,615 1941—Jan. 8 2,184 1,048 1,136 50 2,237 22,034 3,034 2,203 220 1,740 284 14, 284 6,835 Jan. 15 2,184 1,048 1,136 67 2,254 22,066 3,092 8,542 2,195 237 1,742 283 14, 414 6,896 Jan. 22 2,184 1,048 1,136 69 2,256 22,089 3,095 8,541 2,196 261 1,750 283 14, 410 6,864 Jan. 29 2,184 1,048 1,136 41 2,228 22,110 3,097 8,548 2,200 258 1,799 283 14, 347 6,799 Feb. 5 2,184 1,048 1,136 31 2,217 22,122 3,099 8,627 2,212 692 1, 784 283 13,842 6,306 Feb. 12 2,184 1,048 1,136 74 2,260 22,130 3,100 8,665 2,212 622 1,837 283 13, 871 6,331 Feb. 19 2,184 1,048 1,136 49 2,235 22,140 3,102 2,222 479 1,785 282 14,021 6,440 Feb. 26_.__. 2,184 1,048 1,136 36 2,223 22,179 3,101 8,725 2,204 368 1,752 281 14,175 6,542 Mar. 5 2,184 1,048 1,136 2,237 22, 237 3,103 8,805 2,192 391 1,772 280 14,136 6,435 Mar. 12.... 2,184 1,048 1,136 2,244 22,318 3,106 8,811 2,196 421 1,748 280 14, 211 6,483 Mar. 19... 2,184 984 1,201 73 2,259 22,335 3,104 8,826 2,208 913 1,721 289 13, 741 6,106 Mar. 26... 2,184 984 1,201 35 2,221 22,359 3,108 8,842 2,230 906 1,788 13, 633 6,011 Apr. 2 2,184 955 1,230 59 2,244 22,384 3,110 8,944 2,251 1,045 1,704 13,506 5,941 Apr. 9 2,184 955 1,230 46 2,235 22,413 3,113 8,993 2,272 813 1,740 13,656 6.027 Apr. 16..__ 2,184 1,008 1,177 100 2,286 22,421 3,116 2,269 534 1,763 13,979 6,264 Apr. 23.... 2,184 1,008 1,177 53 2,239 22,482 3,118 8,992 2,299 947 1,808 289 13, 506 5.760 Apr. 30.... 2,184 1,008 1,177 48 2,234 22,506 3,122 9,071 2,283 1,830 13,524 5,771 May 7 2,184 1,008 1,177 43 2,229 22, 525 3,125 9,151 2,292 804 1,905 288 13,440 5,711 May 14 2,184 1,008 1,177 53 2,239 22,538 3,129 9,155 762 1,961 287 13,458 5,689 May 21 2,184 1,008 1,177 50 2,237 22, 565 3,131 9,186 2,280 477 1,972 13, 732 5,855 May 28-_._ 2,184 1,008 1,177 43 2,231 22, 573 3,133 9,294 2,221 462 1,926 13,749 5,824 June 4 2,184 951 1,234 54 2,240 22,579 3,136 9,394 2,229 1,852 285 13,201 5,407 June 11 2,184 951 1,234 63 2,249 22, 593 3,138 9,393 2,240 941 1,809 285 13, 312 5,488 June 18 2,184 951 1,234 55 2,241 22, 612 3,142 9,433 2, 258 1,024 1,855 295 13,131 5.314 June 25 2,184 951 1,234 63 2,249 22,620 3,148 9,490 2,275 1,081 1,891 295 12,985 5,145 July 2 2,184 951 1,234 2,273 22, 627 3,150 9,704 2,276 1,820 289 13,125 5,265 July 9 2,184 951 1,234 61 2,249 22,640 3,152 9,695 2,291 1,039 1,756 289 12,971 5,124 July 16 2,184 951 1,234 108 2,294 22,655 3,157 9,645 2,309 849 1,792 288 13, 223 5,336 July 23.... 2,184 951 1,234 61 2,248 22,664 3,161 9,634 2,320 954 1,759 13,117 5,181 July 30.... 2,184 951 1,234 56 2,245 22,673 3,163 9,697 2,330 921 1,748 13,097 5,155 Aug. 6 2,184 951 1,234 41 2,231 22,682 3,169 9,795 2,345 839 1,865 287 12,951 5,018 Aug. 13—. 2,184 951 1,234 53 2,247 22,703 3,172 9,792 2,361 919 1,816 287 12,948 5,027 Aug. 20.... 2,184 951 1,234 80 2,272 22,710 3,178 9,840 2,377 785 1,835 285 13,037 5,058 Aug. 27.... 2,184 951 1,234 87 2,281 22,716 3,178 2,378 772 1,843 285 12,998 4,994 Sept. 3 2,184 951 1,234 45 2,241 22, 722 3,180 10,034 2,400 708 1,834 284 12,884 4, 857 Sept. 10.... 2,184 951 1,234 58 2, 255 22, 733 3,185 10, 036 2,397 456 1,843 283 13,158 5,111 Sept. 17...- 2,184 951 1,234 121 2,316 22, 741 3,188 10,046 2,408 334 1,836 293 13, 328 5,249 Sept. 24-... 2,184 951 1,234 83 2,279 22, 749 3,194 10, 070 2,350 379 1,856 293 13,273 5,202 Oct. 1 2,184 951 1,234 49 2,244 22, 761 3,196 10,183 2,259 309 1,918 292 13, 240 5,193 Oct. 8 2,184 951 1,234 70 2,265 22, 772 3,203 10, 237 2,241 304 1,877 291 13, 290 5,209 Oct. 15 2,184 951 1,234 121 2,313 22, 778 3,207 10, 283 2,222 259 1,920 292 13, 321 5,234 Oct. 22.... 2,184 908 1,277 103 2,291 22, 786 3,214 10, 278 2,195 977 292 12, 749 4,655 1 Includes industrial advances and bills bought, shown separately in subsequent tables. 2 End of month and Wednesday figures estimated. NOTE.—For description of figures in this table and discussion of their significance, see BULLETIN for July 1935, pp. 419-429. Reprints of article together with available back figures, may be obtained upon request. 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 Wednesday dates since January 6,1937 on maturity distribution of security holdings will be supplied on request. 1144 FEDERAL RESERVE BULLETIN 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 Federal Reserve Act Secured by direct and Federal Reserve Bank eligible guaranteed ob- All other To banks To others ligations of the U. S. In In In In In Rate effect Rate effect Rate effect Rate effect Rate effect Nov. 1 beginning- Nov. 1 beginning- Nov. 1 beginning- Nov. 1 beginning— Nov. 1 beginning— Boston Sept. 1,1939 Sept. 1, 1939 Sept. 2, 1937 Sept. 1,1939 Apr. 29, 1938 New York Aug.27, 1937 Aug.27, 1937 Oct. 10, 1935 Aug.25, 1939 Feb. 8, 1934 Philadelphia..... Sept. 4, 1937 Sept. 4, 1937 Sept. 4, 1937 Sept. 1, 1939 Sept. 1, 1939 Cleveland May 11, 1935 May 11, 1935 Oct. 19, 1935 Sept. 1, 1939 May 11, 1935 Richmond Aug.27, 1937 Aug.27, 1937 Sept.10, 1937 Sept. 1, 1939 Feb. 19, 1934 Atlanta Sept.16, 1939 Aug.21, 1937 Aug.21, 1937 Sept.16, 1939 Apr. 23, 1938 Chicago Sept. 1, 1939 Aug.21, 1937 Aug.21, 1937 Sept. 1, 1939 Oct. 16, 1933 Bt. Louis Sept.21, 1939 Sept.2, 1937 Sept. 2, 1937 Sept.16, 1939 Feb. 23, 1935 M inneapol is Aug.24, 1937 Aug.24, 1937 Aug.24, 1937 Sept. 1, 1939 Oct. 8, 1938 Kansas City Sept.16, 1939 Sept.3, 1937 Sept. 3, 1937 Sept.16, 1939 Apr. 16, 1938 Dallas Sept.16, 1939 Aug.31, 1937 Aug.31, 1937 Sept.16, 1939 Apr. 16, 1938 San Francisco __. Sept. 3, 1937 Sept.3, 1937 Sept.17, 1937 Sept. 1, 1939 Oct. 19, 1933 1 Two and one-half per cent to lenders other than banks. NOTE.—Rates applicable to United States Government securities' repurchase agreements are as follows: New York, one per cent; Cleveland, Kansas City, and Dallas, one and one-half per cent. Back figures—See Annual Report for 1937 (table 40). FEDERAL RESERVE BANK BUYING RATES ON ACCEPTANCES FEDERAL RESERVE BANK RATES ON INDUSTRIAL ADVANCES [Per cent per annum] Rates in effect Nov. 1 on advances and commitments under Maturity e R ff a ec te t i o n n In g i e n ff n e i c n t g — be- Pre ra v t i e ous [Per cen S t e p c e ti r o a n n 1 n 3 u b m o f e x th c e e p F t e a d s e i r n a d l i R ca e t s e e d r v b e y A f c o t otnote8] Nov. 1 Advances to or in participation with financ- 1-15 days i___. Oct. 20, 1933 Advances ing institutions 16-30 days ._..do direct to Commit- 31-45 days .do. Federal Reserve industrial On por- ments 4 6 91 1 6 - - - 1 9 6 2 0 0 0 d d d a a a y y y s s s .. . . ... _ . _ d d d o o o _ _ .. . . Bank 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 i w n o s h n t i i c t f u h o - r m O a n in r i e n - g a to d v m an a c k e e s 121-180 days.. _do_. tion is portion i i This rate also applies to acceptances bought under repurchase agree- obligated i ments, which agreements are always for a period of 15 days or less. NOTE.—Minimum buying rates at the Federal Reserve Bank of Boston _. 3 New York on prime bankers' acceptances payable in dollars; higher New York 4-6 2-3 2-5 1-3 rates may be charged for ftther classes of bills. The same minimum Philadelphia rates apply to purchases, if any, made by other Federal Reserve Banks. Cleveland Back figures.—See Annual Report for 1937 (table 41). Richmond 4-6 Atlanta.... 4-6 4 4-6 1-2 MEMBER BANK RESERVE REQUIREMENTS Chicago 3-6 3-6 3-6 [Per cent of deposits] St. Louis <") Minneapolis 3-6 3-6 3-6 1-2 Aug. 16, Mar. 1, May 1, Apr. 16, Effec- Kansas City 4-6 4 4 Classes of deposits 1936- 1937- 1937- 1938- tive Dallas 4-6 4 4-6 and banks Feb. 28, Apr. 30, Apr. 15, Oct. 31, Nov. 1. San Francisco 4-6 3-4 4-5 34-2 1937 1937 1938 2 1941 1941 2 i The Federal Reserve Banks of New York, Philadelphia, Cleveland, On net demand Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, deposits:i and Dallas may charge same rate as charged borrower by financing Central reserve city,. 22«4 26 22M 26 institution, if lower than rate shown. Reserve city . _ 15 20 17^ 20 * Same as rate charged borrower by financing institution. Country WH 12H 14 12 14 3 One per cent less than rate charged borrower by financing institution. On time deposits: 4 One per cent less than rate charged borrower by financing institu- All member banks... 4H 6 5 6 tion with minimum of three per cent (see note l). 1 See footnote to table on p. 1151 for explanation of method of com- in 5 s t O it n u e ti - o h n al f w o i f t h o n m e i p n e i r m c u e m nt o le f s s f o t u h r a n p e r r a te c e c n h t ar ( g se e e d n b o o t r e r ow l). er by financing pu 2 t in P g e rc n e et n , ta d g em es a nd in t d h e i p s o s c it o s. lumn are double the statutory requirements, • Minimum charge one-fourth of one per cent. which were in effect June 21, 1917-Aug. 15, 1936. MAXIMUM RATES ON TIME DEPOSITS MARGIN REQUIREMENTSl Maximum rates that may be paid by member banks as established by Prescribed by Board of Governors of the Federal Reserve System in the Board of Governors under provisions of Regulation Q accordance with Securities Exchange Act of 1934 [Per cent per annum] [Per cent of market value] Nov. 1, 1933 Feb. 1, 1935 In effect Apr. 1, Nov. 1, to to beginning 1936- 1937 Jan. 31, 1935 Dec. 31, 1935 Jan. 1, 1936 Oct. 31, and 1937 after Savings deposits For extensions of credit by brokers and dealers on Postal savings deposits listed securities, under Regulation T _.- 55 40 Other time deposits pay- For short sales, under Regulation T (J) 60 able in: For loans by banks on stocks, under Regulation U_. »55 40 6 months or more. * Regulations T and U limit the amount of credit that may be ex 90 days to 6 months tended on a security by prescribing a maximum loan value, which is a Less than 90 days specified percentage of its market value at the time of the extension; the "margin requirements" shown in this table are the difference be- NOTE.—Maximum rates that may be paid by insured nonmember tween the market value (100%) and the maximum loan value. banks as established by the Federal Deposit Insurance Corporation, 1 Requirement under Regulation T was the margin "customarily effective February 1, 1936, are the same as those in effect for member required" by the broker. banks. Under Regulation Q the rate payable by a member bank may » Regulation U became effective May 1, 1936. not in any event exceed the maximum rate payable by State banks or NOTE.—Regulations T and U also provide special margin requirements trust companies on like deposits under the laws of the State in which on "omnibus" accounts and loans to brokers and dealers. the member bank is located. NOVEMBER 1941 1145 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 1941 1941 1940 Oct. 22 Oct. 15 Oct. 8 Oct. 1 Sept. 24 Sept. 17 Sept. 10 Sept. 3 Sept. Aug Sept. Assets Gold certificates on hand and due from U. S. Treasury 20, 560,029 20, 525,032 20, 501,030 20,466,03120,362,029 20,297,032 20, 297,032 20, 299,032 20, 446,030 20, 299,030 18, 928,300 Redemption fund—F. R. notes 13,289 14,153 14,010 14,729 15,743 16,386 16,386 15,146 14,729 15,146 11,789 Other cash 267, 533 250,498 243,391 252,404 269,462 267,065 262,666 235,953 250,885 256,847 331, 586 Total reserves _ 20,840,85120,789,683 20,758,43120,733,164 20,647, 23420, 580,483 20, 576,08420, 550,13120,711,644 20,571,02319,271, 675 Bills discounted: For member banks 3,545 7,762 10, 771 10,869 11,317 10,684 13,405 12, 219 10, 768 10,814 4,631 For nonmember banks, etc 200 200 200 200 200 200 200 200 410 Total bills discounted. 3,545 7,762 10,971 11,069 11,517 10,884 13,605 12,419 10,968 11,014 5,041 Industrial advances 9,570 9,273 9,087 8,902 8,964 9,701 9,681 8,918 9,801 8,604 U.S. Government securities: Direct Bonds 1,402,200 1,359,200 1, 359,200 1, 359,200 1,359,200 1, 359,200 1, 359, 200 1, 359, 200 1, 359,200 1, 359, 200 1,312,000 Notes 777,300 820,300 820,300 820,300 820,300 820,300 820,300 820,300 820,300 820,300 1,115,000 Guaranteed 4,600 4,600 4,600 4,600 4,600 4,600 4,600 4,600 4,600 4,600 6,600 Total U. S. Government securities, direct and guaranteed. 2,184,100 2,184,100 2,184,000 2,184,100 2,184,100 2,184,100 2,184,100 2,184,100 2,184,100 2,184,100 2,433, 600 Other Reserve Bank credit outstanding 93,367 111, 770 60,677 74,169 111, 796 47,828 34,878 60,480 70,355 37,881 Total Reserve Bank credit outstanding... 2,290, 582 2,312,905 2,264,835 2, 243, 709 2,278,750 2, 315,676 2,255, 234 2, 241,078 2, 264,466 2, 275,270 2, 485,126 Liabilities F. R. notes in actual circulation 7, 352,047 7, 350,851 7,299,505 7,255,733 7,164,250 7,147,456 7,129,940 7,117,836 7, 233,999 7,079, 505 5,449,878 Deposits: Member bank—reserve account 12,748, 587 13, 321,390 13, 290, 448 13,240,448 13, 273,084 13, 327,926 13,158, 335 12,884, 323 13, 227, 29312, 794, 22713, 726,906 U. S. Treasurer—general account 977,178 258,814 304,023 308,748 378,956 333,762 455,691 708,465 422,880 906,190 755,747 Foreign 1,140,505 1,188,259 1,165,164 1,184,983 1, 111, 359 1,126,450 1,143,825 1,152,015 1,114,080 1,136,350 1,054,790 Other deposits 659,405 731,908 711,401 733, 445 744,984 709,232 698,933 681,726 724,333 684,477 525,865 Total deposits.. 15, 525,675 15, 500,37115, 471,036 15,467, 62415, 508,383 15,497,370 15,456, 78415,426, 529 15,488, 586 15, 521,244 16,063, 308 Ratio of total reserves to deposit and F. R. note liabilities combined (per cent) 91.1 91.0 91.2 91.2 91.1 90.9 91.1 91.2 91.2 91.0 MATURITY DISTRIBUTION OF BILLS AND U. S. GOVERNMENT SECURITIES HELD BY FEDERAL RESERVE BANKS [In thousands of dollarsl Total W 15 i d th a i y n s 16 d a to y s 30 31 d a to y s 60 61 d a to y s 90 m 91 t o o d n a t 6 h y s s 6 m 1 t y o o e n a th r s 2 l y y t e e o a a r rs 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: Oct. 1 ... .. 11,069 8,339 1,111 1,214 250 150 5 Oct. 8 10,971 8,923 761 997 143 142 5 Oct. 15 7,762 6,215 669 536 139 191 12 Oct. 22 3, 545 1,753 156 522 360 706 48 Industrial advances: Oct. 1 8,902 2,549 312 170 438 878 1,484 1,680 1,391 Oct. 8 9,087 2,575 321 167 569 902 1,488 1,678 1,387 Oct. 15 9,273 2,569 332 187 649 896 1,495 1,698 1,447 Oct. 22 . 9,570 2,816 390 421 423 877 1,572 1,636 1,435 U. S. Government securities, direct and guaranteed: Oct. 1 2,184,100 43,000 84,800 66,200 208,200 548,300 1, 233,600 Oct. 8 2,184,100 43,000 84,800 66, 200 208, 200 548, 300 1, 233,600 Oct. 15 2,184,100 43,000 84,800 66, 200 208,200 548, 300 1, 233,600 Oct. 22 - 2,184,100 84,800 66, 200 208,200 548,300 1,276,600 1146 FEDERAL RESERVE BULLETIN 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 N Y e o w rk P p d h h e i l i - l a a- C la le n v d e- Rich- la A n t t - a Chicago L S ou t. is n M o e l a i i n p s - - K C s a a it n s y - Dallas F c S i r s a a c n n o - Assets Gold certificates on hand and due from TJ. S. Treasury: Sept. 17 20, 297,032 165,291 8,466,882 1., 28i5,, 122 ,1562,934 735, 905 495, 286 3,428, 338 550,443 3406,87 480, 557330,6841,454, 903 Sept. 24 20,362,029 186,757 8,482,408 1,288,142 1, 567,634 743, 755 499,933 3,459,7005 4"9',"414 334,198 483,462329, 7"8•8 1,436,838 Oct. 1 20.466,031 172,081 , 6,.64 1 1,269, ,619, 585 747,653 497,438 3,498,0'2"8" 550,915 342, 388 488,781352,038 1,440, 569 Oct. 8 20, 501,030 197,660 8,429,686 1,280,4291,615,632 779,620 506,105 3,458,242 569,779 347,821 501,0"5"5" 356,464 1,458, 537 O O c c t t . . 2 1 2 5 2 2 0 0 , . 5 5 6 2 0 5 , , 0 0 2 3 9 2 2 24 0 0 2 , , 6 7 0 6 9 7 I) 495,112 1 , 1 2 , 9 2 4 9 , 3 2 , 2 5 51 1 "8. , 6 1, 4 7 6 , 6 6 3 0 , 5 6787 7 7 9 2 0 , , 6 6 6 5 3 3 5 5 1 0 4 8 , , 2 3 4 5 1 5 3 3 , , 4 2 3 7 4 , 10 2 ,4 2 3 7 5 5 7 7 3 3 , , 3 8 6 6 8 0 3 34 4 6 5 ' , , 8 9 6 7 1 9 5 0 5 0 0 , 6 6 , 7 1 6 76 3 5 3 9 5 , 6 6 , 5 1 7 531 ,14,6 457,394,0117 Redemption Fund—Federal Reserve notes: Sept. 17 16, 386 4,! 1,773 1,015 920 1,775 464 1,218 902 552 478 731 1,675 Sept. 24 15,743 4,853 1,658 968 871 1,477 442 1,175 893 548 470 725 1,663 Oct. 1 14,729 4,757 1,299 821 729 1,566 374 1,011 861 534 445 708 1,624 Oct. 8 14,010 4,721 1,170 765 679 1,263 350 959 848 526 433 687 1,609 Oct. 15 14,153 4,677 1,009 695 620 1,884 321 896 835 520 422 679 1,595 Oct. 22 13, 289 4,634 852 629 560 1,491 292 837 822 514 410 671 1,577 Other cash: Sept. 17 267,065 27, 219 60,042 17, 531 17,425 15.370 21,186 38, 257 11,015 5,423 11,935 11,755 29, 907 Sept. 24 269,462 27, 588 64,416 16,407 22,388 12,989 18,665 39, 754 11,575 5,359 12, 360 10, 240 27, 721 Oct. 1 252,404 27,435 54,707 17, 223 17,041 15,485 17, 732 37,414 15,068 4,423 10, 898 8,732 26,246 Oct. 8 243, 391 26, 340 55, 771 16,394 18, 214 11,012 15,874 35,911 13, 505 4,915 11,210 9,703 24, 542 Oct. 15 250,498 25, 610 50,136 17, 292 15,678 16, 927 19,634 35, 798 17, 562 4,985 11, 623 10, 445 24,808 Oct. 22 267, 531 26, 382 57,147 17,466 19,553 15,414 18, 708 37, 918 17, 728 4,834 12, 912 11, 503 27,968 Total reserves: Sept. 17 20, 580,4831,197, 393 8, 528,6971, 303,6681, 581, 279 753,050 516,936 3, 467, 813 562, 360 346,662 492, 970 343,1710, 486, 485 Sept. 24 20,647, 2341, 219,198 8, 548,4821, 305, 5171, 590,893 758,221 519,040 33,, 500,629 561882 340,105 496, 292 340, 753 ,1 466, 222 Oct. 1 20, 733,1641, 204, 273 8, 542,6471, 287, 9581, 637, 355 764, 704 515, 544" i3,, 536,453 566,844 347, 345500,124361,4781, 468,439 Oct. 8 20, 758,4311, 228, 721 8,486, 6271, 297, 5881, 634, 525 791, 895 522, 3293,495,112 584,132 3531!,262512, 698 366"»;, 8541, 484, 688 Oct. 15 20, 789,6831, 232, 896 8,437, 4221,312,2121, 663, 903 809,474 534,1963, 463,921592, 257 352, 484518, 221367, 2771, 505,420 Oct. 22 20, 840, 8511, 271, 783 8, 553, 1111,311,6131, 683, 791 9, 558 527, 3553, 379, 798 59lj 918 351, 209 5,1939,8371,8311,494,886 Bills discounted: Secured by U. S. Government obligations, direct and guaranteed: Sept. 17 1,610 1,240 8 100 10 89 50 Sept. 24 1,920 1,415 155 100 10 127 Oct. 1 1 1,155 163 100 20 142 Oct. 8 1,591 1,125 108 100 20 124 Oct. 15 1 150 925 58 100 30 51 33 Oct. 22 1,351 150 595 58 200 140 54 Other bills discounted: Sept. 17 9,274 8,130 19 56 159 162 15 Sept. 24 9,597 8,481 19 56 109 165 617 15 Oct. 1 9,409 8,450 19 56 6 242 577 15 Oct. 8 9,380 8,477 19 56 241 522 15 Oct. 15 6,275 200 5,209 37 266 522 Oct. 22 2,194 200 25 52 1, 295 512 53 Total bills discounted : Sept, 17 10, 884 9,370 27 156 56 24 192 172 687 65 Sept. 24 11,517 9,896 174 156 56 24 142 175 744 15 Oct. 1 11,069 9,605 182 156 27 24 64 262 719 15 Oct. 8 10, 971 9,602 127 156 36 49 64 261 646 15 Oct. 15 7,762 350 6,134 58 137 42 25 114 296 573 33 Oct. 22 3,545 350 58 252 42 25 130 1,435 566 53 Industrial advances: Sept. 17 8,896 1,436 1,183 3,698 255 810 161 349 482 81 298 143 Sept. 24 8,964 1,667 1,083 3,669 247 803 160 332 466 96 298 143 Oct. 1 8,902 1,667 1,081 3,623 219 801 174 342 462 96 294 143 Oct. 8 9,087 1,661 1,086 3,623 213 801 176 336 200 463 294 138 Oct. 15 9, 273 1,655 1,086 3,609 222 793 265 332 300 493 284 138 Oct. 22 9,570 1,895 1,096 3,573 211 792 271 336 400 480 283 137 U. S. Government securities, direct and guaranteed: Bonds: Sept. 17 363, 800 99, 286 384,113 107, 301 141, 895 74, 720 57, 484 166, 99965,! 38, 477 66,2 53, 594 107, 765 Sept. 24 363, 800 99, 286 384,113 107, 301 141, 895 74, 720 57, 484 166, 999 65, 886 38,477 53, 594 107, 765 Oct. 1 363,800 105, 744 353, 624 107, 412 134, 809 84, 293 58, 227 186, 22769, 382 40, 590 58, 653 47, 800 117,039 Oct. 8 363, 800 105, 744 353, 624 107, 412 134, 809 84, 293 58, 227 186, 227 69, 38240, 590 58, 653 47, 800 117,039 Oct. 15 363,800 105, 744 353, 624 107, 412 134,809 84, 293 58, 227 186, 22769, 38240, 590 58, 653 47, 800 117,039 Oct. 22 406, 800 109,078 364, 773 110,798 139,060 86,951 60, 063 192,099 71, 570 41, 870 60,502 49, 307 120, 729 Notes: Sept. 17 820, 300 59, 719 231,036 64, 541 85, 348 44, 943 34, 577 100, 446 39, 630 23,144 39,864 32, 235 64, 817 Sept. 24 820,300 59,719 231,036 64, 541 85, 348 44, 943 34, 577 100,446 39, 630 23,144 39,864 32, 235 64,817 Oct. 1 820, 300 63, 604 212, 697 64,605 81,084 50,703 35,022 112,012 41, 731 24, 414 35, 279 28,752 70, 397 Oct. 8 820, 300 63, 604 212, 697 64, 605 81,1 50, 703 35, 022 112,012 41, 731 24, 414 35, 279 28,752 70, 397 Oct. 15 820, 300 63, 604 212, 697 64, 605 81,084 50,703 35,022 112,012 41,731 24, 414 35,279 28, 752 70,397 Oct. 22 777, 300 60, 270 201, 548 61, 219 76,833 48, 045 33,186 106,141 39, 544 23,134 33, 430 27, 244 66, 706 Total U. S. Government securities, direct and guaranteed: Sept. 17 2,184,100 159,005 615,149 171,842 227, 243 119,663 92,061 267, 445105, 51661, 621106,144 85, 829 172,582 Sept. 24 2,184,100 159,005 615,149 171,842 227, 243 119, 663 92,061 267, 445105,516 61, 621106,144 85, 829 172,582 Oct. 1 2,184,100 159,005 615,149 171, 842 227, 243 119, 663 92,061 267, 445105, 51661, 621106,144 85, 829 172, 582 Oct. 8 2,184,100 159, 005 615,149 171,842 227, 243 119, 663 92, 061 267,445 105, 51661,621106,144 85, 829 172, 582 Oct. 15 2,184,100 159,005 615,149 171, 842 227, 243 119,663 92, 061 267,445 105, 51661, 621106,144 85,829 172,582 Oct. 22 2,184,100 169, 348 566,321 172,01 215,893 134,996 93, 249 298, 240Hi, 114 65, 004 93,932 76, 551 187, 435 NOVEMBER 1941 1147 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 h d h i e 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 o t u . is n M o e l a i i n p s - - K C s a i a t n s y - Dallas F c S i r s a a c n n o - Assets—Continued Total bills and securities: Sept. 17 2, 203,: 160,441 625, 702 175, 567 227, 654 120, 519 92, 278 267,818105,708 62,192106, 397 86, 814 172, 790 Sept. 24 2, 204, 581 160, 672 626,128 175, 685 227, 646 120, 51292, 277 267,801105, f ~ 62,176 106; 415 86,871 172,740 Oct. 1 2,204,071 171,015 577,007 175,822 216,268 135, 806 93, 450 298,605111,119 65, 530 94,290 77, 565 187, 594 Oct. 8 2, 204,158 171,009 577,009 175, 767 216, 262 135, 806 93, 461 298, 624111,319 65, 531 94,289 77, 492 187, 589 Oct. 15 2, 201,135 171,353 573, 541 175,684 216, 252 135, 78993, 556 298, 596111,413 65, 611 94, 324 77, 409 187, 607 Oct. 22 2,197,215 171,593 568,037 175,648 216,356 135, 788 93, 562 298, 601111, 528 65, 614 95, 463 77, 400 187,625 Due from foreign banks: Sept. 17 47 3 18 5 4 2 2 1 1 4 Sept. 24 47 3 18 5 4 2 2 1 1 4 Oct. 1 47 3 18 5 4 2 2 1 1 4 Oct. 8 47 3 18 5 4 2 2 1 1 4 Oct. 15 47 3 18 5 4 2 2 1 1 4 Oct. 22 47 3 18 5 4 2 1 1 4 Federal Reserve notes of other banks: Sept. 17 41,900 1,625 3,974 1,405 1, 14, 575 2,334 2,613 2,304 1,048 4,374 857 4,805 Sept. 24 39,422 1,202 2,959 1,417 1,914 14,235 3,319 2,534 2,406 1,825 3,611 625 3,375 Oct. 1 37, 718 1,106 2,750 1,428 2,189 14,633 1,915 2,799 2,273 1,065 3,557 531 3,472 Oct. 8 38, 717 1,110 2,937 1,445 1, 15, 011 2,659 2,946 2,167 1,029 3,250 876 3,418 Oct. 15 40, 674 1,076 5,234 1,132 2,588 13,822 2,906 2,584 2,219 861 4,000 1,305 2,947 Oct. 22 38, 271 1,248 2,708 1,483 2,219 13, 754 2,706 2,467 2,633 905 3,405 964 3,779 Uncollected items: Sept. 17 1, 296, 599 123,992 293,696 83,497 164,100 108,616 51, 571 198,266 70, 523 30,848 49, 581 44,348 77, 561 Sept. 24 956, 918 92,096 210, 684 62,182 116, 901 83, 959 38, 567 137,087 47, 414 26, 421 46, 635 36,861 58, 111 Oct. 1 1,058,511 105,082 255, 999 70,775 134, 642 86, 718 43,613 145, 554 44, 775 24,178 47,020 36,108 64,047 Oct. 8 896,730 90,155 198,787 59,490 103, 362 79, 469 41, 554 123, 470 46, 793 26,974 39, 214 32, 366 55,096 Oct. 15 1, 433, 599 130, 582 363, 747 92, 567 172,852 112, 248 58,135 226,019 61,952 30,174 55,170 52, 308 77,845 Oct. 22 1,072,061 102,072 251, 515 69,053 127,001 86,118 45,101 156, 436 47,439 27, 759 48,415 40, 392 70, 760 Bank premises: Sept. 17 40, 662 2,796 10, 262 4,856 4,488 2,784 1,963 2,997 2,295 1,348 2,916 1,166 2,791 Sept. 24 40, 781 2,796 10,401 4,856 4,476 2,784 1,962 2,997 2,294 1,348 2,916 1,166 2,785 Oct. 1 40,732 2,791 10, 404 4,845 4,476 2,791 1,959 2,991 2,287 1,345 2,900 1,158 2,785 Oct. 8 40, 754 2,791 10,404 4,476 2,791 1,959 2,991 2,287 1, 345 2,900 1,158 2,785 Oct. 15 40, 840 2,791 10, 404 4^867 4,476 2,878 1,959 2,991 2,286 1,345 2,900 1,158 2,785 Oct. 22 40,983 2,791 10, 548 4,867 4,463 2,892 2,991 2,285 1,345 2,900 1,158 2,785 Other assets: Sept. 17 42, 369 2,851 11, 262 3,571 4, *2, 570 1,773 4,902 1,933 1,232 2,016 1,667 3,762 Sept. 24 43, 221 2,916 11,694 3,600 4,854 2,598 1,811 4, r ~ 1,973 1,251 2,035 1,710 3,816 O O O O c c c c t t t t . . . . 8 1 1 2 5 2 4 4 4 4 4 4 4 4 , , , , 9 4 1 4 4 1 1 0 4 7 8 6 3 3 3 3 , , , , 1 1 1 2 8 3 9 3 6 9 8 6 1 1 1 1 1 1 1 1 , , , , 3 4 3 3 1 7 7 8 1 5 0 5 3 3 3 3 , , , , 6 6 5 6 6 0 6 3 1 4 9 7 4 4 4 4 , , , , 8 7 7 7 5 6 3 6 1 6 4 5 2 2 2 , , , 9 9 8 1 4 9 9 3 2 1 1 1 1 , , , , 1 8 8 8 6 7 4 5 9 2 5 5 5 5 , , , , 6 6 7 6 3 4 3 4 9 0 8 0 2 2 2 , , , 1 1 0 1 3 6 8 2 7 1 1 1 1 , , , , 3 3 3 3 5 5 2 5 5 3 3 0 1 1 1 1 , , , , 8 8 8 8 8 6 5 4 9 3 3 5 1 1 1 1 , , , , 5 5 5 5 8 5 5 8 9 5 1 1 4 4 4 4 , , , , 1 1 1 2 4 6 2 3 1 8 7 4 Total assets: Sept. 17 24, 205, 9401, 489,1019,473,611I, 572, 5691,984, 3411,002,116 666i,, 8573,944,415 7451,,124443, 330 658, 255 478, 0231,748,198 Sept. 24 23, 932, 2041,478, 8839, 410, 3661, 553, 2621,946, 688 982,311 6"5"6."978 3,916,017 '72:1,628433,126 657, 905 467. 1, 707,053 Oct. 1 24,118, 649 1, 487,4689, 400,1361, 544,4371, 999,6991,007, 573658,3623,992.047729,417440,816 549,755 478,4301,730,509 Oct. 8 23, 983, 7811,497,025 9, 287, 2571, 542, 8231, 965, 3491,027,917 663!,, 8433, 928, 887 748, 831449,496 354, 241 480, 2981, 737,814 Oct. 15 24, 550, 0961, 541, 8409, 401, 7511, 590,0362, 064,809 1,077,105 692!,5,9 65 936, ', 757772,195451, 798 676, 461 501,0131, 780, 735 Oct. 22 24, 233, 8451, 552, 6769, 397, 3071, 566,3062,038,600 1, 031,042672, 5493, 845,939757,902 448,182 666,035 493, 3271, 763,980 Liabilities Federal Reserve notes in actual circulation: Sept. 17 7,147,456 593, 288 1,859, 559 499, 550 360, 629235,762 1,515,496 227700,,120182, 327237,410113,421 599,006 Sept. 24 7,164, 250 595,142 1,859, 748 500, 994 682, 867 363, 393236,679 ,518,673 274,451182, 501237, 719114,849 597, 234 Oct. 1 7, 255, 733 601, 472 1,878, 309 503, 779 686, 852 375, 661243,0041, 529, 757281,670 184,471241, 311121, 373 608,074 Oct. 8 7, 299, 505 605, 566 1,877,469 505, 567 691, 566 382, 357247,1851, 535, 280 286, 186,493242, 528123,003 616,023 Oct. 15 7,350,851 612,139 1, 895,191 509, 321 696,136 390,164246,942 ,543,760288,742 186, 380242, 332122, 373 617, 371 Oct. 22 7, 352,047 611,152 1,888, 986 509,459 695,903 388,100246, 796 1, 550, 355289, 657187, 722242, 679122, 345 618,893 Deposits: Member bank—reserve account: Sept. 17 13, 327, 926 676, 430 6,138, 594 801, 763 974, 332 439,687 304.,4642,024, 324,313 171, 702 300,633 252,677 918,826 Sept. 24 13, 273, 084 683, 052 6,098, 591 804, 086 969, 579 455.318 8142,024,640 319',,164167, 514 299,065 254, 664 898,597 Oct. 1 13,240,448 686, 675 5, 989,464 786,399 985, 432 458,699 296f,, 5112,063, 343324,541174, 354 292,065 261, 282 921,683 Oct. 8 13, 290, 448 696,612 5, 994,116 801,080 976,769 480,165305,0392,036,486 339\, 034178,953 304,170 260,672 917, 352 Oct. 15 13,321,390 709,449 5,979,074 800,1621,009,139 483, 452308. 8192,001, 325 346,028 176.,,508 308,906 263,090 935,438 Oct. 22 12, 748, 587 666,095 5, 757, 623 767, 547 967,050 452. 421286,252 1891, 370 3r34, 695 157',, 469 304, 974 253,788909,303 U. S. Treasurer—general account: Sept. 17 333, 762 25,406 56, 765 24, 098 15, 788 28, 260 15,810 35,429 33,416 23,010 24, 993 24, 681 26,106 Sept. 24 378,956 30,756 82,255 32,262 24,074 18.473 23,894 42,060 28,048 21,327 27.821 20,762 27,224 Oct. 1 308, 748 18, 391 54,120 29, 302 38. 827 20, 582 17,186 35,759 24, 530 20,396 24,123 14, 781 10, 751 Oct. 8 304,023 29, 294 53, 853 19,065 31, 545 17.474 11,031 43, f" 21, 706 18, 836 20, 962 17,121 19,480 Oct. 15 258.814 9, 853 29,273 21, 552 23, 505 19, 329 20, 289 33,788 23,187 17,915 25, 858 17,750 16, 515 Oct. 22 977,178 95, 626 413,929 65,032 90, 253 35, 764 33, 729 70, 425 32, 259 38, 741 28.822 31,674 40,924 Foreign: Sept. 17 1,126,450 52,048 440,395 107,320 101, 78S 47, 575 38, 724 132,767 33,192 24,341 32,085 32,085 84,130 Sept. 24 1,111,359 52, 471 434, 402 105,712 100, 263 46,862 38,144 130,778 32, 694 23,976 31, 605 31, 605 82, 847 Oct. 1 1,184, 983 50, 761 510,632 105, 561 100,120 46, 795 38,089 130,591 32, 648 23,942 31,559 31, 559 82,726 Oct. 8 1,165,164 50, 675 458,727 111, 007 105, 285 49, 209 40,054 137,329 34, 332 25,177 33,188 33, 86, 993 Oct. 15 1,188, 259 52,951 458, 833 114,514 108, 611 50,764 41,319 141,667 35,411 25, 972 34, 236 34, 236 89, 739 Oct. 22 1,140, 505 51,795 442, 664 109, 361 103, 723 48,479 39,460 135,291 33,823 24,803 32, 695 32, 695 85, 716 Other deposits: Sept. 17 709,232 6,404 595, 809 16,450 27, 510 6,096 7,890 4,995 5,830 2,611 730 26, 509 Sept. 24 744, 984 7,313 624,012 14, 265 28, 623 7, 401 9,422 5,073 8,602 6,315 5,942 702 27, 314 Oct. 1 733,445 8,182 610,877 14, 751 28, 730 7,012 8, 286 6,020 10,212 6,740 4,754 1,538 26, 343 Oct. 8 711,401 5,556 596, 746 13, 648 28, 623 6,323 8,370 5,368 9,400 6,687 919 25, 975 Oct. 15 731,908 11,153 582, 909 21,181 38, 396 7,422 8,179 11, 347 10, 258 9,451 3'284 1,240 27,088 Oct. 22 659, 405 7,492 543, 289 12, 960 30,984 6,890 7,790 4,792 8,608 6,493 2,638 1,262 26, 207 * Less than $500. 1148 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Reserve Banks—Continued [In thousands of dollars] Phila- Min- Kan- San Total Boston New del- Cleve- Rich- At- Chicago St. neap- sas Dallas Fran- York phia land mond lanta Louis olis City cisco Liabilities—Continued Total deposits: Sept. 17 15, 497, 370 760,288 7, 231, 563 949,6311,119,418 521,618 366, 888 2,197, 696 399,319 224,883360, 322 310,173 1,055, 571 Sept. 24 15, 508, 383 773, 592 7, 239, 260 956,"3'2"5 1'.., 122, 539528,054 370, 274 2, 202, 55318'8 , 5081 221199,,113322 364,433 307,733 1,035,982 Oct. 1 15,467, 624 764,009 7,165,093 936,013 1,, 153,109 533,088 360,072 2, 235,7133 9319,,1993311 222255,,443322 335522,, 550011 309,160 1,041,503 Oct. 8 15,471,036 782,137 7,103,442 944, 8001,142,222 553,171364,494 2, 222,839 40:4,4,74272 229,653 362,106 311,900 1,049,800 O O c c t t . . 1 2 5 2 1 1 5 5 , , 5 52 0 5 0 , , 6 37 7 1 5 7 8 8 2 3 1 , , 4 0 0 0 6 8 7 7 , , 0 1 5 5 0 7 , , 0 5 8 0 9 5 9 95 5 4 7 , , 9 4 0 0 0 9 1 1, ,1 7 1 9 9 , 2 6 , 5 0 1 10 5 5 6 4 0 3 , , 9_ 5 "_6 5 ~.7 4 3 3 7 6 8 7 , , 3 0 2 6 3 12 2 , , 1 1 0 8 1 8 , , 8 1 7 2 8 7 4 4 0 1 9 4: , ,,8 8 3 99 8 00 5 2 2 2 2 7 9 , , 5 8 0 4 6 6 372, 1 2 2 Q 8 4 31 3 9 16, 316 1,068, 780 Deferred availability items: Sept. 17 1,184, 850 109,523 252,859 88,563 149,147 103,510 50,448 183,165 63,687 49,i 42, 808 65,750 Sept. 24 882, 796 84.138 181, 549 61,114 106, 359 74,451 36, 238 146,657 46,649 21,666 44,279 33, 763 45,933 Oct. 1 1, 018,920 95,903 227, 077 69,897 124,846 82,466 41,519 178,495 43,813 21,094 44, 503 36, 271 53,036 Oct. 8 836,100 83.139 176,496 57, 671 96,595 75, 894 38, 381 122,606 45,871 23, 506 38,144 33, 753 44,044 Oct. 15 1, 321, 876 120,276 326,437 88, 534 154,079 109,484 53, 274 219, 703 56, 568 25, 751 50,405 50,701 66, 664 Oct. 22 978, 741 94, 507 220,806 67,069 115,713 82,879 44, 709 145,473 46, 841 23,120 42, 765 39, 879 54,980 Other liabilities, including accrued dividends: Sept. 17 3,473 408 912 299 325 106 348 123 120 146 139 184 Sept. 24 3,950 401 1,068 350 397 370 128 431 140 130 155 158 222 Oct. 1 3,692 493 972 268 348 356 118 361 139 131 138 151 217 Oct. 8 4,307 597 1,129 423 395 133 437 148 154 145 171 272 Oct. 15 4,186 426 1,293 403 380 126 423 137 142 159 160 249 Oct. 22 4, 405 1,233 391 429 393 162 478 144 143 160 160 290 Total liabilities: Sept. 17 23, 833,1491,463, 5079, 344, 893 ,1 538,043 1,949,816 986,082 653, 2043, 896, 705733,249 433, 639 646,959 466,541 1,720, 511 Sept. 24 23, 559, 3791,453,273 9, 281, 625 ,1518,783 1,912,162 966; 268 643, 319 3, 868, 317209, 748 423,429646, 586 456,503 1, 679, 371 Oct. 1 . 23,745,969 1, 461, 8779, 271, 4511, 509,9571,965,155 991, 571644, 713 3, 944, 326 717, 553 431,126838, 453 466, 9551, 702,830 Oct. 8 23,610,948 1,471,439 9,158, 536 1,508,3411,930, 1,011,817 650,1933, 881,162 736, 959 439, 806642, 923 468,8271, 710,139 Oct. 15 24,177, 2841, 516, 2479, 273,010 ,1555, 55"2 "21,,030,269 1,,0 60,,995 678,948 3,952,013 760, 337 442,119665,,1,8 0 489, 515,0 753, 064 Oct. 22 23, 860, 8511, 527,0729, 268, 530 ,1 531, 8192, 004, 055 1, 014, 926 658, 8981, 739,8,184746,027438,491654, 733 481,803 1, 736, 313 Capital Accounts Capital paid in: Sept. 17 141,045 9,361 51, 724 11,908 14, 599 5,542 4,843 15,087 4,367 3,004 4,550 4,296 11, 764 Sept. 24 141,013 9,361 51, 725 11, 860 14, 599 5,548 4,847 15,091 4,368 3,004 4,550 4,296 11,764 Oct. 1 141,043 9,362 51, 734 11, 860 14, 600 5, 549 4,848 15,098 3,006 4,551 4,296 11,771 Oct. 8 141,155 9,361 51, 759 11, 859 14, 601 5,639 4,848 15.094 4^368 3,007 4.552 4.296 11.771 Oct. 15 141,173 9,361 51, 772 11,859 14,600 5,639 4,! 15.095 4,368 3,011 4,552 4,296 11,771 Oct. 22 141, 248 9,362 51, 772 11, 860 14, 603 5,639 4,848 15,097 4,376 3,011 4,553 4,356 11,771 Surplus (section 7): Sept. 17 157,065 10,' 56, 447 15,144 14, 323 5,247 5,725 22, 824 4,925 3,152 3,613 3,974 10, 785 Sept. 24 157,065 10,906 56,447 15,144 14, 323 5.247 5,725 22, 824 4,925 3,152 3,613 3,974 10, 785 Oct. 1 157,065 10, 906 56, 447 15,144 14, 323 5. 247 5,725 22, 824 4,925 3,152 3,613 3,974 10, 785 Oct. 8 157, ""• 10,906 56,447 15,144 14, 323 5. 247 5,725 22, 824 4,925 3,152 3,613 3,974 10,785 Oct. 15 157,065 10, 906 56, 447 15,144 14, 323 5.247 5,725 22, 824 4,925 3,152 3,613 3,974 10,785 Oct. 22 157,065 10,906 56,447 15,144 14, 323 5,247 5,725 22,824 4,925 3,152 3,613 3,974 10, 785 Surplus (section 13b): Sept. 17 26, 785 2,874 7,070 4,393 1,007 3,244 713 1,429 533 1,000 1,138 1,263 2,121 Sept. 24 26, 785 2,874 7,070 4,393 1,007 3,244 713 1,429 533 1,000 1,138 1,263 2,121 Oct. 1 26, 785 2,874 7,070 4,393 1,007 3,244 713 1,429 533 1,000 1,138 1,263 2,121 Oct. 8 26, 785 2,874 7,070 4,393 1,007 3,244 713 1,429 533 1,000 1,138 1,263 2,121 Oct. 15 26, 785 2,874 7,070 4,393 1,007 3,244 713 1,429 533 1,000 1,138 1,263 2,121 Oct. 22 26,785 2,874 7,070 4,393 1,007 3,244 713 1,429 533 1,000 1,138 1,263 2,121 Other capital accounts: Sept. 17 47, 896 2,453 13,477 3,081 4,596 2,001 2,372 8,370 2,050 2,535 1,995 1,949 3,017 Sept. 24 47,962 2,469 13,499 3,082 4,597 2,004 2,374 8,361 2,054 2,541 2,018 1,951 3,012 Oct. 1 47, 78^ 2,449 13,434 3,083 4,614 1,962 2,363 8,370 2,038 2,530 2,000 1,942 3,002 Oct. 8 47,828 2,445 13, 445 3,086 4,612 1,970 2,364 8,378 2,046 2,531 2,015 1,938 2,998 Oct. 15 47,789 2,452 13, 452 3,088 4,610 1,980 2,361 8,396 2,032 2,516 1,978 1,930 2,994 Oct. 22 47, 896 2,462 13,' 3,090 4,612 1,986 2, 365 8,405 2,041 2,528 I,1"" 1,931 2,990 Total liabilities and capital accounts: Sept. 17 24, 205,9401,489,101 9, 473, 6111, 572, 569 1,984,341 1,002,116 666, 8537, 944, 415 745,124 443, 330 658,255 47,80,231, 748,198 Sept. 24 23, 932, 2041, 478,8839, 410, 3661, 553, 262 1,946, 688 982, 361516,978 ~3i,, 916,017721, 628 433,126 657,905 467,9871,707,053 Oct. 1 24,118,649 1, 487,4689,400,1361, 544,437 1, 999,699 1,0075,73 665588,, 362 i3,, 992,047729,417 440,816 649, 755 478,4301, 730, 509 Oct. 8 23,983,781 1,497,025 9, 287, 2571, 542, 823 1, 965, 349 1,027,961673,843 3i,, 928,887748,831449,496 6544,,241480,298 1,737, 814 Oct. 15 24, 550, 0961, 541, 8409,401, 7511, 590,036 2,064, 809 1,077,105 692, 596: ,3, 999, 757 772,195 451, 79786 ,64:61501,0131, 780, 735 Oct. 22 24, 233,8451, 552, 6769,397, 3071, 566, 306 2, 038,600 1,031,042 672, 54;9, 3 8,4 58,45,939 757,494082,182 666, 035 493., ^32' 1, 763,980 Commitments to make industrial advances: Sept. 17 11, 487 1,061 516 2,094 1,242 741 1,044 669 37 3,327 Sept. 24 12, 586 810 516 2,122 1,190 742 1,044 635 1,501 3,315 Oct. 1 12, 709 810 514 2,196 1,229 788 1,044 692 659 1,501 3,225 Oct. 8 -. 13, 673 515 2,254 1,224 860 1,041 1,600 659 1,501 3,161 Oct. 15 13,580 507 2, 265 1,244 851 1,041 1,600 559 1,501 3,155 Oct. 22 13, 574 553 463 2,270 1,228 1,226 1,041 1,600 559 1,501 3,082 NOVEMBER 1941 1149 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDUSTRIAL ADVANCES BY FEDERAL RESERVE BANKS [Amounts in thousands of dollars] Repaid, Date O ea a c s h t W m e o d n n th e ) sday of Ap r p ec li e c i a v t e i d ons Ap c p o l n ic s a id ti e o r n a s t i u o n n der A a p p p p li r c o a v ti e o d ns A ( s a t d a m o v n u o d a t n u i - n c n g e t ^ ) s C st m o a o m n e u d n m t i - t n s i g t- A p b p l u c e p o t t r m e o n d v o - e « t d d e o r x a r a p p w w p ir n i l e t i h - d b - , y 1 s P p ta a a o n t r i u t d o i t i c - n n i s - g3 Number Amount Number Amount Number Amount (amount) (amount) cant, etc. (amount) (amount) 1934—Dec. 26_. 4,386 146,972 2,955 984 49,634 13,589 8,225 20,966 5,558 1,296 1935—June 26_. 6,325 237, 581 11, 349 1,646 88,778 27, 518 20, 579 11,248 24,900 4,533 Dec. 31 4. 7,437 293,084 2,823 1,993 124,493 32,493 27, 649 11, 548 44,025 8,778 1936—June 24.. 8,006 314,471 1,880 2,183 133,343 30,484 24,454 9,381 61,425 7,599 Dec. 30._ 8,247 1,245 2,280 139, 829 25, 526 20,959 8,226 77, 910 7,208 1937—Mar. 31.. 8,344 333, 300 1,322 2,323 141, 545 23,059 18,611 7,898 85, 210 6,767 June 30__ 8,430 339, 509 1,263 2,361 145, 758 23,019 16, 331 1,470 97, 663 7,275 Sept. 29.. 8,474 341,842 800 2,381 146,724 21,415 14,880 537 102, 588 7,304 Dec. 29_. 8,534 350, 551 550 2,406 150,987 20,216 12, 780 3,369 107,384 7,238 1938-Mar. 30_. 8,708 358, 936 1,299 2,464 154,918 19, 371 13,110 3,419 111, 193 7,825 June 29 _ 8,976 369, 853 476 2,566 161,158 18,444 13,649 3,084 117, 555 8,426 Sept. 28. 9,102 378,974 146 2,617 168, 380 17, 567 13, 597 5,737 122,447 9,032 Dec. 28_. 9,188 387,490 247 2,653 175,013 17,345 14,161 1,946 128,839 12, 722 1939—Mar. 29. 9,249 392, 230 344 2,683 177,895 15, 798 12,647 1,975 135,004 12,471 June 28 9,308 395,499 255 2,721 179, 778 15, 255 11,175 2,067 139, 281 12,000 Sept. 27. 9,366 402,305 370 2,752 185,234 14,454 10, 517 1,938 146,156 12,169 Dec. 27_. 9,418 405, 225 41 2,781 188, 222 13, 683 9,220 2,659 151,679 10,981 1940—Jan. 31.. 9,433 406,097 76 2,793 188,879 12, 860 8,376 2,504 154,629 10, 510 Feb. 28 . 9,456 407, 392 32 2,805 190,055 12,997 8,966 1,454 155, 574 11,064 Mar. 27. 9,476 410,192 199 2,814 192, 665 12, 723 8,224 2,471 158,110 11,137 Apr. 24_. 9,487 411,628 118 2,825 194,096 12,001 8,725 2,264 159. 950 11,156 May 29.. 9,504 413,178 45 2,832 195,404 11, 242 8, 852 2,474 161,491 11, 345 June 26.. 9,512 413, 646 33 2,838 195, 739 10,988 8,762 2,195 162, 612 11,182 July 31.. 9,536 415, 599 76 2,853 197,439 10,907 8,582 1,991 164,949 11,010 Aug. 28_. 9,546 416, 454 444 2,856 197, 906 10, 779 8,238 2,095 165,865 10,929 Sept. 25. 9,556 417,260 10 2,865 10, 778 8,078 2,315 167,046 10, 749 Oct. 30.. 9,573 420,837 740 2,875 201, 750 10,484 7,351 4,260 169,746 9,909 Nov. 27. 9,581 421,139 650 2,883 202,041 9,893 7,106 4,056 171, 394 9,592 Dec. 31 *. 9,609 431, 236 222 2,908 212, 510 9,152 5,226 13,954 177,792 6,386 1941—Jan. 29 9, 633 435, 474 1,929 2,923 214,800 9,483 5,207 12, 325 179,021 8,764 Feb. 26.. 9,659 442,712 600 2,945 223,226 9,451 5,066 20,424 179, 569 8,716 Mar. 26. 9,682 448,506 823 2,959 228, 732 9,526 7,315 19,986 180,989 10,916 Apr. 30.. 9,719 444,985 35 2,987 225,849 9,157 8,464 13, 035 183, 646 11, 547 May 28_. 9,793 455,868 1,725 3,046 234, 714 9,639 12, 342 14,134 186,062 12, 537 June 25 . 9,817 458,092 35 3,067 238, 505 10, 549 13,072 8,090 192, 783 14,011 July 30._ 9,855 471,035 145 3,096 10, 761 11, 697 11, 626 202, 287 12, 496 Aug. 27_. 9,891 481, 255 70 3,120 258,154 10,359 12,928 11, 520 208,279 15,068 Sept. 24. 9,912 498,017 2,220 3,132 267, 606 9,808 13, 551 10, 251 216, 258 17, 738 Oct. 225. 9,940 503,172 11,856 3,151 273, 760 10, 411 13, 574 11,840 218, 886 19,049 1 Includes industrial advances past due 3 months or more which are not included in industrial advances outstanding in weekly statement of condition of Federal Reserve Banks. 2 Includes applications approved conditionally by the Federal Reserve Banks and under consideration by applicant. 3 Does not include financing institution guaranties of advances and commitments made by Federal Reserve Banks, which amounted to $676,- 000, Oct. 22, 1941. * Tuesday. 5 Latest date for which figures are available. FEDERAL RESERVE NOTES—FEDERAL RESERVE AGENTS' ACCOUNTS, BY WEEKS [In thousands of dollars] Total B to os n - Y N o e r w k P p d h h e i l i l - a a- C la le n v d e- m Ri o c n h d - la A n t t - a C ca h g i- o L S ou t. is n M o e l a i i n s p - - K C s a a i n t s y - Dallas F c S r is a a c n n o - Federal Reserve Notes: Issued to F. R. Bank by F. R. agent: Oct. 1 605, 730331,835 960, 654125, 79312,915 263,178 561,981299,195 89,951249,088 33, 393 377,851 Oct. 8 678,873 342, 505 .976,801530,516 15,938 104,231269,568 , 573,743304,911 .91, 737252,917 .35,195 380,811 Oct. 15 709,349 339,128 983, 066""1,007 '22, 663HI, 363269,159 577, 215 12, 678.92, 402252, 796 34, 439386, 433 Oct. 22 , 734,850348,895 , 978,184534,426 '27,381L15, 584269,934 , 581, 30010,058 .93,052252, 862 .35,166 388,008 Held by Federal Reserve Bank: Oct. 1 349,997 30, 363 82, 345 22,014 26,063 24, 235 20,174 32, 224 17, 525 5,480 7,777 12,020 69, 777 Oct. 8 379,368 36,939 99,332 24,949 24, 372 21,874 22,383 38,463 18,443 5,244 10, 389 12,192 64, 788 Oct. 15 358,498 26,989 87, 875 18,686 26, 527 21,199 22, 217 33, 455 23,936 6,022 10, 464 12, 066 69, 062 Oct. 22 382,803 37,743 89,198 24,967 31, 478 27,484 23,138 30,945 20,401 5,330 10,183 12, 821 69,115 In actual circulation: * Oct. 1 , 255,733601,472 1, 878, 309503, 779 686, 852375, 661243,0041, 529, 757281, 670.84, 471241, 311121, 373 608,074 Oct. 8 ,299, 505605,5661,877,469 505', 567 mi, 566 382^ 247,1851, 535,280286, 468.86, 49r 242, 528123, C Oct. 15.. , 350, 851612,1391,895,191 5i0 9,3216"9"6",136 390| 164246,9421, 543, 760288,742 .86, 380 242, 332122, 373 617',,3!71 Oct. 22 , 352,04'611,1521, 509, 459 695,903 ;,100246, 7961, 550, 355289, 657.87,722 f2"4 2, 6'•79 122, 345618, 893 Collateral held by agent as security for notes issued to bank: Gold certificates on hand and due from U. S. Treasury: Oct. 1 739,000655,0001,970,000540,000715,000 425,000270,0001, 580,000309,000192,000 255,000 139, 000 689,000 Oct. 8 796,000655,0001,980,000540,000720,000425,000275,0001,600,000319,000192,000 255,000 141, 000 694,000 Oct. 15 836,000655,0001,990,000540,000725,000425,000275,0001, 600,000329,000197, 000255,000 141,000 704, 000 Oct. 22 886,000655,0001,990,000540,000730,000450,000275,0001, 620,000329,000197,000 255,000 141, 000704, 000 Eligible paper: Oct. 1 9,999 9,520 163 60 256 Oct. 8 9,940 9,517 108 60 255 Oct. 15 6,946 350 6,134 58 110 294 Oct. 22 2,563 350 620 58 1 126 1,395 Total collateral: Oct. 1 748,99S 655,0001,979, 520540,163715,000425,000 270,000 1, 580,000309,000 192,060 255,256 139,000689,000 Oct. 8 805,94f 655,0001.989, 517540,108 720,000425,000275,000 1,600,000319,000 192,060 255, 255141,000694,000 Oct. 15 842,94i 655, 3501, 996,134 540,058 725,000425,000 275,000 1,600,000329, 000197,110255,294 141,000 704,000 Oct. 22 888, 562655, 3501.990, 620540,058 730,00C 450,00C 275,00C 1,620,000329,014 197,126256, 395141,000704,000 i Includes Federal Reserve notes held by the United States Treasury or by a Federal Reserve Bank other than the issuing bank. 1150 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RESERVE POSITION OF MEMBER BANKS, SEPTEMBER, 1941 MEMBER BANK RESERVE BALANCES BY CLASSES OF BANKS [Averages of daily figures. In millions of dollars] [Averages of daily figures. In millions of dollars] Classes of banks G d r e o - ss N de e - t Time F R ed e e se r B a rv a l n e R s k e s w se i r th ve m A e l m l - Ce c n i t t r y a l ba re n s k e s rve s R er e v - e C t o ry unand districts m d a e n - d m d a e n - d po de s - its banks1 New Chi- banks banks > posits posits i Re- Ex- York cago quired Held cess Total reserves held: 1940—September 13, 643 6,705 1,234 3,905 1,800 All member banks. 47, 299 38, 801 12, 545 8,068 13,184 5,116 October 14,043 6,889 1,279 4,024 1,851 Central reserve city banks: November 14,131 6,975 1,218 4,080 1,858 New York 16, 867 16,163 847 3,719 5,554 1 834 December 14 049 6,997 1,142 4,096 1,815 Chicago.- . 3, 552 3 146 489 740 1 218 478 1Q41 Januarv 14 339 7 135 1 051 4 240 1 913 February 13, 996 6,807 1,033 4,258 1,898 Reserve city banks: March 13, 979 6,924 931 4,197 1,928 Boston district 1,427 1,280 81 228 416 188 April 13, 600 6,518 966 4,204 1,912 New York district 289 226 149 47 70 23 May 13, 650 6,243 1,144 4,298 1,965 Philadelphia district.. 1,702 1,445 229 264 578 313 June 13, 201 5,958 1,144 4,184 1,914 July 13,120 5,875 1,120 4,198 1,927 Cleveland district 2,370 1,877 735 365 750 384 August 13, 004 5,600 1,140 4,287 1,978 Richmond district 1,101 841 239 159 305 146 September 13,184 5,554 1,218 4,335 2,076 Atlanta district.. _ 1,012 701 180 132 195 63 Week ending (Friday): 1941—Sept. 5 12, 844 5,462 1,122 4,236 2,023 Chicago district 1, 885 1,357 701 273 473 201 Sept. 12 13,136 5,563 1,169 4,326 2,078 St. Louis district 1,118 853 174 158 239 81 Sept. 19— 13, 328 5, 602 1,239 4,382 2,105 Minneapolis district.. 507 375 83 70 98 28 Sept. 26 13, 269 5, 568 1,265 4,357 2,079 Oct. 3 13, 256 5,474 1,310 4,364 2,107 Kansas City district.. 1,274 850 156 156 225 68 Oct. 10 13, 299 5,413 1,307 4, 413 2,166 Dallas district 951 602 132 112 157 45 Oct 17 13 337 5, 414 1 251 4,464 2,208 San Francisco district. 3,051 2,477 2,042 536 830 294 Excess reserves: 1940—September 6, 582 3,324 570 1,821 CAA Total 16,687 12, 883 4,902 2,500 4,335 1,836 October 6,864 3,465 610 1,888 902 Country banks: N D o e v c e e m m b b e e r r... 6 6 , , 6 8 4 3 6 0 3 3 , , 4 4 9 4 3 3 4 5 7 4 6 6 1 1 , ,8 8 8 9 7 5 8 84 9 0 7 Boston district 1,193 863 569 132 248 116 1941—January 6 832 3 505 381 2,016 930 New York district 1,823 1,312 1,491 232 478 246 February... _ 6,422 3. 166 347 2,004 906 Philadelphia district. 870 575 886 113 218 105 March 6,304 3. 203 252 1,923 927 April 5,883 2,812 295 1,885 891 Cleveland district... 872 557 743 104 209 105 May 5,831 2,514 434 1,949 933 Richmond district 826 459 395 75 145 71 June 5,351 2,238 424 1,820 870 Atlanta district 726 438 254 65 107 42 July 5,193 2,150 388 1,789 866 August ._ 5,017 1,898 403 1, 824 892 S C t h . ic L a o g u o i s d d is is tr t i r c ic t t 1,2 5 3 2 1 7 3 76 2 5 4 8 2 5 5 7 9 13 5 5 2 26 8 5 6 13 3 1 5 Week S e e n p d t i e n m g b ( e F r riday): 5,116 1,834 478 1, 836 968 Minneapolis district... 410 256 281 45 73 29 1941—Sept. 5 4,820 1, 749 386 1, 763 922 Sept. 12 5,066 1,832 431 1,831 973 Kansas City district... 572 351 161 50 27 Sept. 19.... 5,236 1,876 494 1,870 996 Dallas district 668 417 105 55 95 39 SeDt 26 5 200 1 857 525 1,850 968 San Francisco district 474 292 306 50 74 23 Oct. 3 P5,194 1,772 572 1,853 P996 pc 230 1 720 571 1 884 P\ 055 Total 0,192 6,608 6, 307 1,108 2, 076 968 Oct. 17 P5, 240 1, 709 523 1,912 "1,096 i Gross demand deposits minus demand balances with domestic banks p Preliminary (except private banks and American branches of foreign banks) and i Weekly figures of excess reserves of all member banks and of country cash items in process of collection. banks are estimates. NOTE.—See table on p. 1145 for percentages of deposits required to be held as reserves. DEPOSITS OF MEMBER BANKS IN LARGER AND SMALLER CENTERS [Averages of daily figures. In millions of dollars] \l\ member banks Membe ( r p la b c a e n s k s o v i e n r l 1 a 5 rg ,0 e 0 r 0 ) centers Memb ( e p r la b c a e n s k u s n i d n e s r m 1 a 5 ll ,0 e 0 r 0) centers Federal Reserve district Gross demand Time Gross demand Time Gross demand Time Sept. Aug. Sept. Aug. Sept. Aug. Sept. Aug. Sept. Aug. Sept. Aug. Boston ... .. _ 2, 620 2,584 650 649 2.457 2,426 527 527 163 158 123 122 New York 18, 979 18,777 2,488 2,473 i 1, 735 1 1,651 i 1,123 i 1,111 377 371 518 514 Philadelphia 2, 572 2.528 1,116 1,117 2,254 2,224 650 653 318 304 466 464 Cleveland . 3,243 3,184 1,478 1,476 2, 912 2,867 1,131 1,131 331 317 347 345 Richmond 1,927 1, 834 634 629 1,678 1.602 430 427 249 232 204 202 Atlanta. 1,737 1,683 433 432 1, 571 1, 521 349 348 167 162 85 84 Chicago 6,668 6,596 2,047 2,044 i 2, 660 1 2, 628 1 1,217 11,213 456 441 341 339 St. Louis 1 646 1. 587 434 431 1,334 1. 295 307 306 312 292 127 126 Minneapolis 918 885 364 363 723 701 197 197 194 184 167 167 Kansas City 1 846 1, 794 317 317 1,456 1,419 207 206 390 375 110 111 Dallas 1.619 1,567 238 239 1,261 1,220 191 193 357 348 47 46 Ban Francisco 3, 524 3,410 2,348 2,343 3,375 3,271 2, 245 2,241 150 139 103 102 Total 47, 299 46, 430 12, 545 12, 513 123, 415 122, 825 i 8. 571 i 8, 550 3,465 3,322 2,638 2, 624 i Excluding central reserve city banks, for which figures for latest month are shown in table above. NOVEMBER 1941 1151 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 S c c e il a r v t t i e e f s r i- o T n f u r o e ry t a 1 e 8 s s 9 - 0 S s u c i i b a l o v r s i y n e id r - M co in in or U S n n t o a i t t t e e e s s d R F n e e o s d e t e e r r s v a e l R F B n e e o d s a t e e n e r r k s v a e l t n b i N o o a a n t n - e k a s l 1940—August 8,059 66 47 1,605 1 389 174 258 5,334 22 162 September ._. . . 8,151 66 48 1,615 1 394 177 259 5,409 22 161 October 8,300 65 48 1,620 1 400 180 264 5,541 22 160 November 8,522 65 49 1,658 1 407 183 275 5,705 21 159 December _ 8,732 65 50 1,667 1 412 185 290 5,883 21 157 1941—January . 8,593 64 50 1,595 1 403 183 278 5,842 21 156 February 8,781 64 50 1,635 1 406 184 278 5,985 21 155 March 8,924 64 51 1,651 1 413 186 277 6,106 21 154 April _ 9,071 63 51 1,654 1 418 189 274 6,247 21 153 May .. ._ 9,357 63 52 1,697 1 426 191 286 6,468 20 152 June 9,612 63 53 1,714 1 434 194 300 6,684 20 150 July ... 9,732 63 54 1,691 1 438 196 307 6,813 20 149 August... __ . _. _ 9,995 62 55 1,723 1 445 199 313 7,027 20 148 September.. 10,163 62 56 1,724 1 455 202 314 7,181 20 147 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- assorttion i ed 2 Total Coin $13 $2 $5 $10 $20 Total $50 $100 $500 $1,000 $5,000 $10,000 1940—August.. 8,059 5,748 611 556 36 1.044 1,858 1,644 2,313 495 1,035 213 493 26 51 2 September 8,151 5,814 618 566 36 , 055 1,876 1.663 2,340 503 1,048 216 496 25 52 3 October 8 300 5,911 627 575 36 I 0G8 1 908 I 696 2,392 512 1 071 223 508 25 52 3 November 8,522 6,098 639 591 38 107 1.977 748 2,426 523 1,089 225 512 26 51 3 December 8,732 6,247 648 610 39 I, 129 2,021 1,800 2,489 538 1,112 227 523 30 60 4 1941—January 8,593 6,094 635 577 37 ,091 1,973 ,781 2,502 540 1,126 230 530 24 52 4 February _. 8,781 6,243 641 582 38 ,116 2,041 826 2,541 551 1,144 232 535 24 55 4 March 8,924 6,342 650 590 38 132 2.074 858 2.583 560 1,163 238 543 24 56 1 April 9,071 6.430 658 595 39 .135 2. 112 1,892 2.642 573 1,197 241 550 25 56 2 May 9, 357 6,683 669 615 40 . 176 2,211 L972 2, 675 587 1,218 242 546 24 57 2 June 9,612 6,890 681 625 41 L, 207 2.289 2,047 2,725 607 1,244 244 548 24 57 2 July 9,732 6,992 688 626 40 ,215 2, 334 2,090 2,742 615 1,257 244 544 24 58 3 An gust. __ 9, 995 7, 237 700 641 42 .257 2,430 2.169 2.760 630 1,274 244 543 24 46 3 September. 10,163 7,378 713 658 42 270 2,469 2,227 2,787 645 1,293 243 537 24 46 3 1 Total of amounts of coin and paper currency shown by denominations less unassorted currency in Treasury and Federal Reserve Banks. 2 Includes unassorted currency held in Treasury and Federal Reserve Banks and 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 s S i i s a u l i v b d r - y e - r M c i o n in or U S n n t o a i t t t e e e s s d t n b i N o o a n t n a e a k - s l Year or month m E S e u n h r i t o s p 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 e i n t p t - s rec N e et ipts coin 1937.. 21.5 47.6 26.1 1938.. 33.1 34.4 1.3 1939. . 110.2 9.8 100.3 1940—August 409 178 347 164 1940.. 17.7 .7 17.0 September. 411 181 347 163 October 415 183 347 162 1940—September.. .1 C1) November 419 187 347 160 October ,1 December. 425 189 347 159 N"ovember__ .1 .'2 .1 December.. .1 .1 1941—January 427 191 347 158 February... 428 192 347 156 1941—January .1 March 429 193 347 155 February... .1 .1 April 434 194 347 154 March May 440 196 347 153 April 0) June 447 199 347 152 May 0) 0) July... 455 202 347 151 June 0) 0) August 462 204 347 l.r,0 July 0) (0 September. 469 207 347 149 August 0) September. 1 Includes silver held against silver certificates amounting to $1,929,- 000,000 on Sept. 30, 1941 and $1,844,000,000 on Sept. 30, 1940. 1 Less than $50,000. Back figures.—See Annual Report for 1937 (table 38). Description.—See BULLETIN for January 1932, pp. 7-8 1152 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANALYSIS OF CHANGES IN GOLD STOCK OF UNITED STATES MOVEMENT OF GOLD TO AND FROM UNITED STATES1 [In millions of dollars] [In thousands of dollars] Ear- 1941 Period of a s G t t p o o e e c l n r d k i d od In s g c t i o r o n e c ld a k se im g N o p e l o d t rt g m o c o a l r r d e r : a k i s n e d e - d e- p D ti r c o t o i m d g o o u n e l c s d l - - From or to— Sept. Aug. Jan.-Sept. crease (—) Im- Ex- Im- Ex- Im- Exports ports 2 ports ports2 ports ports2 19342 8,238 4,202. 5 1,133.9 82.6 92.9 1935 10,125 1, 887. 2 1, 739.0 .2 110.7 France - 1 1936 3 11, 258 1,132. 5 1,116. 6 -85.9 131.6 Portugal 30 109 321 1937 3 12, 760 1, 502. 5 1, 585. 5 -200.4 143.9 Sweden.. 1,747 1938 14, 512 1, 751. 5 1, 973. 6 -333. 5 148.6 Switzerland 899 1939 17, 644 3,132.0 3, 574. 2 -534. 4 161.7 United Kingdom 250 79 3,440 1940 21,995 4, 351. 2 4, 744. 5 —644. 7 170.2 U. S. S. R 5,652 3,407 20,295 Canada •___ 42, 563 10, 845 350,719 Mexico 495 843 8,170 1940—May 19, 209 439.0 435.1 -36.7 14.2 Central America 911 903 8,088 June 19, 963 754.2 1,163.0 -437. 2 11.1 West Indies and Ber- July 20, 463 499.4 520.0 -55.1 16.2 muda . 103 124 671 August 20, 913 450.2 351.6 67.0 12.5 Argentina 20 10 150 September. 21, 244 331.6 334.1 36.6 13.5 Bolivia 1 77 October 21, 506 261.1 326.0 -117.9 19.2 Brazil 17 November. 21, 801 295.2 330.1 -39.5 16.6 Chile.... 1,338 209 6,862 December. 21, 995 194.0 137.2 7.4 16 3 Colombia 2,488 2,230 17,993 Fcuador 477 228 2, 352 1941—January... 22,116 121.7 234.2 -52.8 13.5 Peru 1,634 319 7,422 February. 22,232 115.4 108.6 -46.2 12.6 Venezuela 392 448 3,377 March 22, 367 135.4 118.6 .2 12.0 British Guiana 67 70 820 April 22, 506 138.5 172.0 -10.5 12.8 Australia... 2,064 6,742 51,647 May 22, 575 69.1 34.8 -3.8 12.6 New Zealand 405 2,131 June 22, 624 49.2 30.7 4.0 14.4 British Oceania _ 354 2,61 July 22, 675 50.5 37.0 -27.7 13.6 British India 6,628 August 22, 719 44.7 37.0 -31.2 12.4 Netherlands Indies... 829 September 22, 761 41.5 65.7 4 -46. 8 P14.4 China and Hong Oct. 1-29P.. 22,796 35.3 35.7 4 -23.1 Kong 3,697 Japan 9,444 Philippine Islands... 3,107 5,098 32, 203 p Preliminary. South Africa 3,694 137 292, 462 1 Figures are those for United States published in table on p. 1192. All other countries 16 1,947 3,642 adjusted to exclude Philippine Islands production received in United States. Total.. 65,707 838, 71! 2 Figures based on rate of $20.67 a fine ounce in January 1934 and $35 a fine ounce thereafter. 3 Includes gold in the Inactive Account amounting to $27,000,000 on 1 Figures represent customs valuations which, with some exceptions, Dec. 31, 1936, and $1,228,000,000 on Dec. 31, 1937. are at rate of $35 a fine ounce. 4 Gold held under earmark at Federal Reserve Banks for foreign ac- 2 Beginning May 1941, the Department of Commerce suspended count, in millions of dollars: September 30—2,022.5; October 29—2,045.6. publication of export statistics by country of destination. NOTE.—For back figures see Annual Report for 1937 (table 29). Back figures—See table, p. 1192, and Annual Report for 1937 (tables 31 and 32). BANK DEBITS Debits to deposit accounts except interbank accounts BANK SUSPENSIONS1 [In millions of dollars] Total, 140 Member Nonmember all New other 133 Total, banks banks Year and month report- York lead- other ing City ing centers banks Na- In- Not centers centers i tional State sured 2 insured 1929,. 982, 531 603,089 331,938 47, 504 1936_. 461, 889 219,670 33, 283 Number of banks suspended: 1937_ 469,463 197,836 235,206 36,421 1934 57 1 8 48 1938_. 405, 929 168, 778 204, 745 32,406 1935 34 4 ??, 8 1939.. 423,932 171,382 218, 298 34,252 1936 44 1 40 3 1940.. 445, 863 171, 582 236,952 37, 329 1937 59 4 2 47 6 1 1 9 9 3 3 8 9 4 5 ? 5 4 1 3 1 4 ?5 7 1 6 0 1940— S A e u p g te u m st ber _ 3 33 2 , , 8 8 4 1 4 2 1 1 2 1 , , 5 6 9 0 4 4 1 18 8 , , 3 2 1 6 4 7 2 2 , , 9 9 2 5 6 1 1940 ?? 1 18 3 October 39, 695 14,952 21, 365 3,378 1941—Jan.-Sept. 5 2 3 November. 39,088 14,952 20,819 3,317 December.. 46, 673 18, 626 24, 327 3,721 Deposits of suspended banks 1941—January 41, 133 15,147 22,498 3,488 (in thousands of dollars):3 February. _. 35, 783 13, 268 19, 457 3,057 1934 36 937 40 191? 34,985 March 44. 558 17, 402 23, 586 3,570 1935 10j015 5,313 3 763 939 April 42, 237 15, 657 23, 074 3,505 1936 11 306 507 10 207 592 May 43, 665 16,124 23, 795 3,746 1937 19 7?3 7,379 1708 10 156 480 June _ 45. 942 17, 282 24, 853 3,807 1938 1301? 36 211 11 721 1,044 July 44, 808 16, 288 24, 660 3,861 1939 34 <W8 1,341 ?4 629 6 589 2,439 August 42, 856 15, 079 24, 033 3. 745 1940 f;943 256 5341 346 September _. 43, 870 15, 654 24, 310 3,907 1941—Jan -Sept 2 436 1,933 503 1 National series, for which bank debit figures are available beginning with 1919. 1 Represents banks which, auring the periods shown, closed tem- 2 Except that 1929 figure is for 128 centers only. porarily or permanently on account of financial difficulties; does not include banks whose deposit liabilities were assumed by other banks at Back figures.—Annual report for 1937, page 157. Annual totals, beginthe time of closing (in some instances with the aid of Federal Deposit ning with 1919, by Federal Reserve districts and for individual centers Insurance Corporation loans). are available for distribution and will be furnished upon request. 2 Federal deposit insurance became operative January 1, 1934. 3 Deposits of member banks and insured nonmember banks suspended are as of dates of suspension, and deposits of noninsured nonmember banks are based on the latest data available at the time the suspensions were reported. Back figures—See Annual Report for 1937 (table 76). NOVEMBER 1941 1153 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 DEPOSITS1 [In millions of dollars] Nonmember Member banks banks Member banks Nonmember banks Call date Total Other Mutual non- All Total ti N on a a - l State s b a a v n in k g s s m b e e m r - Call date banks Total ti N on a a - l State M sav u i t n u g a s l no O n t m he e r mbanks banks ber banks 1929—June 29 25,110 8,707 7,530 1,177 611 15,792 1929—June 29. _. 53,852 32,284 19,411 12,873 8,983 12, 584 Dec. 31 24, 630 8,522 7,403 1,119 609 15,499 Dec. 31.-. 55,289 33,865 20,290 13, 575 8,916 12, 508 1933—June 30 14, 519 5,606 4,897 709 576 8,337 1933—June 30.._ 37, 998 23, 338 14, 772 8,566 9,713 4,946 Dec. 30 15,011 6,011 5,154 857 579 8,421 Dec. 30... 38, 505 23,771 15, 386 8,385 9,708 5,026 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 Dec. 30 15,037 6,362 5,187 1,175 552 8,123 Dec. 30... 58, 344 39,930 25, 661 14, 269 10, 613 7.801 1940—Mar. 26 15,006 6,377 5,178 1,199 551 8,078 1940—Mar. 26... 59,017 40,579 25,911 14, 667 3 10, 544 3 7,895 June 29. 14,953 6,398 5,164 1,234 551 8.004 June 29.. 60, 582 42,039 26, 931 15,108 10,631 7,912 Dec. 31 14,895 6,486 5,144 1,342 551 7,858 Dec. 31 — 65,021 46,007 29, 214 16, 793 10, 658 8,356 1941—Apr. 4 14,871 6,528 5,138 1,390 550 7,793 1941—Apr. 4 ... 65.211 46,179 29, 467 16, 712 10, 684 8,347 June 30 14, 855 4 6, 556 5,130 4 1, 426 7,752 June 30. __ 67,172 4 48,076 30, 684 4 17,392 10, 641 8,456 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 Invest- Invest- Total Loans ments Total Loans ments 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 1936—June 30 48,458 20,679 27, 778 32, 259 12, 542 19,717 9,961 5,105 4,856 6,238 3,032 3,206 Dec. 31 49, 524 21,449 28,075 33,000 13,360 19, 640 10,060 5,027 5,034 6,464 3,062 3,402 1937—June 30 49,696 22, 514 27,182 32, 739 14, 285 18, 454 10,180 5,002 5,178 6,778 3,227 3,550 Dec. 31 48, 566 22,198 26,368 31,752 13,958 17, 794 10,187 4,996 5,191 6,627 3,244 3,383 1938—June 30 47, 381 21,130 26, 252 30,721 12,938 17, 783 10,196 4,961 5,235 6,465 3,231 3,234 Dec. 31 2 48,929 21, 354 27, 575 32,070 13, 208 18,863 10,255 4,930 5,325 6,604 3,217 3,387 1939—June 30 49, 616 21, 318 28, 299 32, 603 13,141 19, 462 10, 342 4,931 5,411 6,671 3,245 3,425 Dec. 30 50,885 22,169 28, 716 33, 941 13,962 19, 979 10,314 4,961 5,353 6,630 3,246 3,384 1940—Mar. 26 51,135 22,190 28,945 34,163 13,939 20,224 3 10,226 4,922 5,304 3 6,746 3,329 3,417 June 29 51, 335 22, 341 28, 995 34,451 13,969 20, 482 10,188 4,926 5,262 6,696 3,445 3,251 Dec. 31. _ 54,188 23, 741 30,448 37,126 15, 321 21, 805 10, 248 4,959 5,289 6,815 3,461 3,353 1941—Apr. 4 „ 56,147 24, 322 31,825 38,983 15, 878 23,104 10, 276 4,954 5,322 6,889 3,490 3,399 June 30 57, 945 25, 312 32, 633 4 40,659 416, 729 4 23, 930 10, 314 4,955 5,360 6,972 3,628 3,344 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. Prior to June 1940, the nonmember bank figures on some call dates included some interbank deposits not shown separately in a few State bank abstracts. 8 Prior to December 1938 the figures include loans and investments indirectly representing bank premises or other real estate, now classified in condition reports among "Other assets." The amounts of such loans and investments in December 1938, were approximately $50,000,000 and $100,- 000,000, respectively. 3 One bank (with deposits, excluding interbank deposits, of $90,000 000 and total loans and investments of $96,000,000 on Dec. 30, 1939) which, prior to March 1940, was classified as a mutual savings bank, is now included in figures in the "Other nonmember banks" column. 4 Includes two mutual savings banks in Wisconsin and one in Indiana, all admitted to membership since the preceding call date, Apr. 4, 1941. Back figures—See Annual Report for 1937 (tables 48-49) 1154 FEDERAL RESERVE BULLETIN 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] Loans 1 Investments 1 Loans for TJ. S. Government obligations Call date m T l v o a i o e e a n n s t n n d - a t t - s l s Total i C t m d a r c i o i u n i n e a a m s d - r l l - * - - A t c u a u g l r l ? r - - i- p O m k a p p a e e r t e n - r b o a p r T s r n u o o e k d r c c c - u a h r r a r o it s y t i i h i T e n n s e o g g rs8 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 l O o t a h n e s r * Total Total Bills N D o ir t e e c s t Bonds G t a e u n e a d - r- g S p O d a s a i o t u t i c o a b n i v l b a o f t i l d i - l e i t n - - - s s O r s i e t t c h ie u e s - r deal- sions Total—All Member Banks 1929—Dec. 31_.35,934 26,150 2,463 7,685 3,191 714 11, 515 9,784 249 520 3,094 1,393 4,528 1933—June 30__24, 786 12,858 953 3,752 2,372 330 4,857 11, 928 6,887 ,113 2,049 3,725 1,744 3,297 1938—June 30_.30, 721 12,938 492 701 2,614 2,613 120 6,397 17, 783 12,343 316 3,653 6,246 2,128 2,143 3,296 Dec. 31__ 32,070 13,208 4,737 442 973 775 2,716 125 2,728 18.863 13,222 286 3,389 7,208 2,340 2,448 3,192 1939—June 3O._32,603 13,141 4,783 420 731 736 2,828 58 2,796 19,462 13, 777 441 2,720 7,786 2,831 2,554 3,131 Dec. 30__33,941 13,962 5,386 455 790 700 2,957 56 19,979 14,328 563 2,223 3,144 2,692 2,959 1940—June 29..34,45i 13,969 5,538 450 447 668 3,069 42 3,020 20,482 14,722 797 2,543 8,261 3,121 2,888 2,873 Dec. 31— 37,126 15,321 6,204 456 642 652 3,228 43 3,230 21,805 15,823 652 2,594 9,091 3,486 3,013 2,970 1941—Apr. 4<L__38,983 15,878 23,104 16,988 3,487 3,206 2,911 June30- 40,659 16,729 7,270 738 537 575 6353,365 44 3,565 23,930 18,078 1,127 2,631 10,481 3,839 2,984 2,867 Sept. 24? 41,939 17,540 24, 399 "" 339 3,164 2,896 New York City* 1929—Dec. 31_. 8,774 6,683 195 1,257 2,145 169 322 2, 595 2,091 1,112 166 889 222 758 1933-June 30._ 7,133 3,424 364 759 1,044 157 162 937 3,709 2,551 987 926 478 680 1938—June 30.. 8,013 3,172 141 556 717 132 85 1,541 4,840 3,740 222 1,358 1,451 709 394 707 Dec. 31— 8,335 3,262 1,456 138 787 220 121 99 436 5,072 3,857 158 1,142 1,663 894 617 698 1939—June 30- 2,988 1,474 128 655 215 130 41 440 5,700 4,483 168 908 2,284 1,123 480 736 Dec. 30_. 3,296 1,768 120 611 188 133 44 425 6,043 4,772 315 797 1,275 579 693 1940—June 29. 9,829 3,014 1,801 103 320 188 137 32 426 6,815 5,486 421 1,092 2,650 ,324 634 695 Dec.31_. 10,910 2,025 100 465 190 130 25 443 7,527 6,044 207 1,245 2,977 ,615 695 788 1941—Apr. 4«-._11,696 3,502 8,194 6,625 ,620 771 798 June 30.. 12,493 3,778 2,405 97 422 186 129 33 503 8.715 7,268 5771,526 3,415 ,751 651 796 Sept. 24P. 12,929 3,937 8,991 7,331 819 841 City of Chicago 7 1929—Dec. 31_. 1,757 1,448 251 633 535 309 116 3 19 94 96 1933—June 30. _ 1,287 677 61 251 30 237 610 384 206 82 97 87 138 1938—June 30. _ 1,806 625 109 361 1,281 981 12 313 535 122 140 159 Dec. 31__ 1,969 539 319 70 62 1,430 1,114 59 291 655 109 141 176 1939—June 30._ 2,052 644 329 71 59 1,507 1,175 185 234 621 135 154 179 Dec. 30_. 2,105 66 60 1,536 "., 203 153 176 701 172 162 170 1940—June 29_ 2,205 417 61 62 1,602 ,258 254 161 710 134 177 167 Dec.31_. 2,377 476 42 54 84 1,681 ,307 297 145 752 112 188 186 1941—Apr. 46-_. 2,649 780 1,869 466 125 226 177 June 30.. 2,707 846 609 21 55 20 101 1,861 ,483 417 125 803 138 190 Sept. 24*. 2,573 918 1,655 1,304 175 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 3O._ 8,492 4,482 126 108 1,340 1,131 99 1,678 4,011 2,483 205 681 1,597 698 930 1938—June 30__11,150 4,853 163 95 998 1,201 26 2,369 6,298 4,658 69 1,268 2,603 718 732 908 Dec. 31__ 11,654 4,963 1,914 149 119 242 1,230 20 1,081 6,691 5,018 57 1,224 2,997 740 808 1939—June 30_ 11, 756 5.004 1,884 138 115 221 1,284 12 1,116 6.751 4,991 78 1,014 3,010 889 895 Dec. 30—12,272 5,329 2,100 155 119 222 1,335 1,168 6, 943 5,194 63 819 3,339 972 890 1940-June 29. 12,160 5,365 2,134 156 87 210 1,372 1,224 6,795 4,947 87 839 3,052 969 981 Dec.31__ 13,013 5,931 2,436 153 115 207 1,436 15 1,307 7,081 5,204 103 771 3,281 1,049 984 893 1941—Apr. 48— 13, 494 6,165 7,328 5,440 1,047 1,034 855 June 30.. 14,013 6,498 2,879 175 202 100 1981,477 1,457 7,515 5,700 73 3,858 1,162 979 Sept. 24P. 14, 591 6,861 7,730 5,917 834 Country Banks 1929—Dec. 31__13, 375 8,936 201 291 2,231 1,462 45 4,705 4,439 1,267 171 627 2,546 1933—June 3O._ 7,873 4,275 35 25 1,117 1,055 2,005 3,598 1,469 299 1,106 581 1,549 1938—June 30. 9,752 4,— 173 21 790 1,269 2,126 5,364 2,964 715 1,657 579 878 1,522 Dec. 31__ 10,113 4,444 1,048 138 25 243 1,353 1,149 5,669 732 1,893 697 982 1,453 1939—June 30._10.109 4,605 1,095 140 22 229 1,402 1,180 5,504 3,127 563 1,870 683 1,025 1.351 Dec. 30__10,224 4,768 1,151 163 20 224 1,477 1.234 5.456 3,159 431 1,972 725 1,061 1,236 1940—June 29- 10, 257 4,987 1,187 174 17 208 1,544 i;308 5,270 3,030 45i 1,849 695 1,097 1,144 Dec.31__ 10, 826 5,309 1,267 187 21 201 1,644 1,397 5,517 3,269 433 2,081 710 1,146 1,102 1941—Apr.:46.._11,144 5,431 5,713 3,456 694 1,176 1,081 June 30_..11,446 5,607 1,377 555 216 17 195 1,739 1,504 5,839 3,627 374 2,404 788 1,165 1,047 Sept.24p.11,846 5,823 6,023 3,788 1,189 1,045 v Preliminary. 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 shown in call reports prior to December 1938, but the total amount of agricultural loans was reported separately on some dates, and the total amount of "Commercial, industrial and agricultural paper" has been reported by weekly reporting banks since May 1937. 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). NOVEMBER 1941 1155 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CONDITION OF ALL MEMBER BANKS—RESERVES AND LIABILITIES [In millions of dollars! Demand deposits, Time deposits, Interbank iexcept interbank except inter*)ank deposits Reserves Bal- De- Indi- Indi- Domestic w F e R r e i e a t d - h l - v C a i a n u sh lt m a w d n e i o c s t e - h ti s c m po a d a s d e n i - - t d s p u v n a a e i r d l r s t - - - , S p a t o a n l t d i e t- s C a 1 e 1 n (3 r d U ti- U G . o v 8 - . p u v n a a e i r d l r s t - - - , S p a t o a n l t i d e t- s Postal banks For- r B i o n o w g r s - - c C o i a t a u c a p n - l - ts Call date B s a e n rv k e s banksJ justed2 s p h a c o o n i r p r d a - s - , s d s Ii i u n i V o v n b t n t i ll - - s ch c e e e tc c r . s k * ' s m e e r n n t - * s p h a c o o n i r p r d a - s - , s d s ii i u n i c o v ao b n i il - - s in sa g v s - * m D a e n - d Time b e a i n g k n s 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—Deo 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 8,004 712 4,084 20,893 19,816 2,314 662 543 10,874 454 83 6,096 135 331 11 5,368 1938—June 30 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 10,011 712 4,674 23, 587 22,448 2,532 790 694 11,063 441 59 7,097 142 607 5 5,496 1939—June 30 11, 604 841 5,506 25, 681 24, 604 2,321 563 743 11,216 432 51 8,507 144 759 3 5,622 Dec. 30 12, 279 862 «5, 634 26,461 24,965 2,499 558 725 11, 368 411 52 6 8,717 6 145 »737 2 5,562 1940—Mar. 26 13, 751 789 5,751 27,877 26. 397 2,529 475 711 11,459 410 59 8,852 134 703 3 5,608 June 29 13, 992 991 6,185 30, 429 29, 576 2,724 913 616 11, 687 435 56 9,581 135 706 3 5,698 Dec. 31 13, 531 837 «6, 340 31, 576 29, 752 2, 957 662 523 11,837 392 54 6 9. 873 6 137 6 635 3 5, 754 1941—Apr. 4 12, 959 999 6,293 32,678 31, 429 2,940 738 619 11,898 397 55 9,610 138 688 3 5,800 June 30 New York City 6 827 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 3,517 65 119 6,698 6,900 273 367 123 694 32 2,614 291 1,587 1938—June 30 4,104 68 109 7,168 7,273 280 195 139 652 36 2,687 442 1,593 Dec. 31 4,975 61 112 8,012 8.281 288 472 84 653 46 2,992 524 ,586 1939—June 30 5,915 89 125 8,899 9,030 251 178 74 693 43 3,542 1 695 I, 592 Dec. 30 6,386 84 «163 9,562 9,652 219 260 68 742 35 6 3, 629 8 1 6672 1,601 1940— Mar. 28 7,072 88 119 i0, 235 10, 283 258 147 67 732 29 3,840 650 1,599 June 29 7,057 102 122 11,062 11,357 370 471 48 768 51 4,032 646 .615 Dec. 31 6,715 85 e 154 11,645 11,629 302 302 29 806 38 6 4,021 6 577 1,623 1941—Apr. 4 5, 857 136 131 11,619 11,895 319 306 32 778 27 3,948 623 (\9X June 30 City of Chicago ' 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 30 936 31 208 1,523 1,386 221 23 86 443 16 688 6 249 1938—June 30 884 35 235 1,688 1,597 181 29 83 452 9 658 9 257 Dec. 31 897 26 235 1,666 1,565 197 22 60 471 17 746 12 270 1939—June 30 993 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 6 997 67 253 1940—Mar. 26 1,187 89 242 1,898 1,782 199 17 79 489 15 5 949 7 260 June 29 1,051 42 319 1,941 1,905 174 27 90 496 8 5 997 8 270 Dec. 31 815 20 6 283 1, 755 1, 685 181 26 108 4*6 10 4 81,151 67 270 1941—Apr. 4 1,062 41 262 2,205 2,109 213 33 95 480 17 5 1,010 8 279 June 30 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 2,289 300 1,951 6,934 6,668 812 146 266 4,238 262 31 2,514 113 32 1,753 1938—June 30 2,354 321 1,940 7,214 7,034 796 170 424 4,233 269 17 2,719 108 57 1,777 Dec. 31 2,735 318 2,210 7,654 7,331 917 160 415 4,320 233 19 2,920 115 69 1,812 1939—June 30 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 «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 3,759 334 2,679 8,774 8,372 956 147 422 4,422 219 18 3,526 105 44 1,873 June 29 4,027 396 2,741 9, 581 9,468 995 228 327 4,506 226 19 3,919 106 51 1,904 Dec. 31 4,107 361 fi 2, 859 10,137 9, 552 1,206 171 273 4,540 202 19 6 4, 023 6 108 6 49 1.917 1941—Apr. 4 4,125 385 2,793 10, 480 10,142 1,139 209 341 4,590 211 19 4,000 108 55 1,940 June 30 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 1,263 316 1,806 5,738 4,863 1,008 126 68 5,499 144 52 380 22 2 11 1,778 1938—June 30 1,353 322 1,956 6,224 5,215 1,128 154 143 5,509 147 44 446 23 2 6 1,798 Dec. 31 1,403 307 2,117 6, 255 5,272 1,130 135 136 5,619 145 40 439 26 2 5 1,828 1939—June 30 1,578 363 2,614 6,866 5,896 1,090 172 154 5,677 140 35 571 26 2 3 1,851 Dec. 30 1,648 389 «2, 645 6,954 5,832 1,205 131 147 5,757 151 35 6 566 «29 62 2 1,875 1940—Mar. 26 1,733 328 2,711 6,969 5,960 1,115 164 143 5,816 147 37 538 29 2 3 1,876 June 29 1,857 452 3,002 7,845 6,846 1,184 187 151 5,917 150 33 633 29 2 3 1,909 Dec. 31 1,894 372 8 3, 044 8,039 6,886 1,269 163 114 6,006 142 31 6 677 629 62 3 1,943 1941—Apr. 4 1,914 437 3,106 8,374 7,282 1,269 190 151 6,049 143 31 652 30 2 3 1,956 June 30 i 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." » Demand deposits other than interbank and U.S. Government, less cash items reported as in process of collection and, prior to Dec. 31, 1935, less cash items reported on hand but not in process of collection. »Includes "Due to Federal Reserve Banks (transit account)," known as "Due to Federal Reserve Banks (deferred credits)" prior to Dec. 31,1935. * U. S. Treasurer's time deposits, open account, are combined with postal savings (time) deposits. 6 Central reserve city banks. 8 Partly estimated. Back figures.—See Annual Report for 1937 (tables 52-58). 1156 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 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 loans cial, securities Date or month m v a i e e n n s n d - t t - s Total t d a r i u i n n a s d - - l, p O m a k p a p e e r t e n - r br T o o k- 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 Total Bills Notes Bonds G a u n a - r- O r s i e t t c h ie u e s - r agri- ers To teed cul- and others tural dealers Total—101 Cities 1940—September 24, 233 8,653 4,551 295 400 462 1,221 1,679 15, 580 1,897 677 2,083 6,555 2,582 3,683 1941—May 27. 764 10,029 5.621 360 479 446 1.237 1,847 17,735 4,024 949 2 214 7, 789 3.072 3,711 June. 28,157 10,252 5,772 370 483 447 1,243 1,897 17, 905 14, 253 1,033 2,234 7,952 3,034 3,652 July 28,560 10, 501 5, 975 381 496 445 1,249 1, 915 18,059 4,490 1,079 2,249 7,946 3,216 3, 569 August 28.942 10, 6^1 6,149 400 453 438 1,253 1,927 18, 281 14, 578 1,069 2,266 7, 931 3. 312 3,703 September 29,171 10,937 6,321 395 536 437 1,258 1,948 18, 234 14, 467 903 2,287 7,958 3,319 3,767 1941—July 30 28, 771 10, 572 6,047 388 478 439 1,253 1,924 18,199 14, 588 1,074 2,253 7,952 3,309 3,611 Aug. 6... 28, 761 10, 597 6,087 397 462 439 1,254 1,919 18,164 14,553 1,075 2,253 7,920 3, 305 3,611 Aug. 13.. 28,874 10,663 6,146 399 457 440 1,254 1, 925 18,211 14,559 1,059 2,256 7,932 3,312 3,652 Aug. 20.. 29.025 10, 688 6,180 404 444 437 1, 252 1,930 18,337 14, 593 1,064 2.276 7,939 3,314 3,744 Aug. 27.. 29,107 10, 697 6,183 400 448 437 1,254 1,932 18., 410 1,079 2,279 7,934 3,316 3,802 Sept. 3-_. 29, 238 10, 903 6,222 397 607 436 1,256 1,940 18, 335 14, 567 1,019 2,283 7,949 3, 316 3,768 Sept. 10.. 29, 230 10, 975 6,310 397 588 437 1, 258 1.942 18, 255 14, 496 936 2,284 7,963 3,313 3, 759 Sept. 17-. 29. 098 10,917 6,362 394 469 437 1,260 1, 95518,181 14, 408 844 2,287 7, 957 3,320 3. 773 Sept. 24_. 29,120 10, 954 6,389 393 481 437 1,258 1,956 18,166 14, 397 814 2,294 7,962 3,327 3,769 Oct. 1--. 29,125 11,024 6,447 397 494 428 1,257 1,962 18,101 14, 301 785 2,280 7,917 3,319 3,800 Oct. 8... 29,132 11,076 6,501 403 493 427 1,256 1,956 18,056 14, 307 815 2, 250 7,920 3,322 3,749 Oct. 15_. 29, 385 11,244 6,568 419 551 439 1,258 1,966 18,141 14,378 842 2,255 7,946 3, 335 3,763 Oct. 22- 29,618 11,212 6,556 423 535 433 1,262 1,966 18,406 14, 653 817 2,222 8,271 3,343 3,753 New York City 1940—September 1,641 2,813 1,734 290 163 124 391 6,828 5,381 312 1,038 2,655 1,376 1,447 1941—May 11,635 3,314 2,141 349 161 114 426 8.321 6,929 487 1,449 3,219 1,774 1,392 June 11,794 3,412 2,213 349 161 114 451 8,382 7,003 582 1,456 3,242 1,723 ,379 July 11,926 3,496 2,291 357 164 112 451 8,430 7,080 605 1,442 3,232 1,801 ,350 August 12,082 3, 534 2,367 326 161 110 452 8,548 7,082 602 1.438 3. 188 1. 854 ,466 September 12,222 3,655 2,426 396 159 108 456 8,567 7,021 495 1,447 3,221 1,858 ,546 1941—July 30 11,983 3,505 2,318 339 162 112 453 8,478 7,087 591 1,434 3,216 1,846 ,391 Aug. 6___ 12, 001 3, 512 2,337 332 161 112 451 8,489 7,097 625 1,432 3,195 1,845 ,392 Aug. 13.. 12.041 3,545 2,372 328 161 111 452 8,496 7,074 582 1,433 3,200 1,859 ,422 Aug. 20.. 12,127 3,540 2,385 317 160 109 453 8,587 7,091 609 1,445 3,183 1,854 ,496 Aug. 27.. 12,157 3,537 2,375 325 160 109 453 8,620 7,066 590 1,443 3,176 1,857 ,554 Sept. 3... 12. 270 3,695 2,393 462 159 110 457 8,575 7,031 548 1,442 3,187 1,854 ,544 Sept. 10.. 12, 259 3,709 2,428 445 159 109 458 8.550 7,009 503 1,443 3,211 1,852 ,541 Sept. 17.. 12,152 3,600 2, 435 336 159 108 454 8, 552 7,004 460 1,450 3,237 1, 857 ,548 Sept. 24.. 12, 208 3,616 2,450 342 159 107 453 8,592 7,040 468 1,453 3,249 1,870 ,552 Oct. 1... 12,237 3,654 2,482 354 151 107 458 8,583 7.002 479 1,437 3,224 1,862 ,581 Oct. 8._. 12,188 3,686 2,515 356 150 107 456 8,502 6,968 474 1,402 3,223 1,869 ,534 Oct. 15_. 12, 309 3,783 2,547 400 154 106 459 8,526 6,985 449 1,412 3,243 1,881 ,541 Oct. 22.. 12, 326 3,755 2,544 378 153 106 461 8,571 7,045 423 1,408 3,324 1,890 1,526 Outside New York City 1940—September 14, 592 5,840 2,817 220 110 299 1,097 1,288 8,752 6,516 365 1,045 3,900 1,206 2,236 1941—May 16,129 6,715 3, 480 268 130 285 1,123 1, 421 9,414 7.095 462 765 4,570 1,298 2,319 June 16, 363 6,840 3. 559 276 134 286 1,129 1,446 9.523 7,250 451 778 4,710 1,311 2,273 July 16.634 7,005 3,684 291 139 281 1,137 1,464 9,629 7,410 474 807 4,714 1,415 2,219 August 16. 860 7,127 3.782 315 127 277 1,143 1. 475 9, 733 7,496 467 828 4,743 1,458 2.237 September 16,949 7,282 3,895 318 140 278 1,150 1,492 9,667 7,446 408 840 4,737 1,461 2,221 1941—July 30 16, 788 7,067 3,729 299 139 1,141 1,471 9,721 7,501 483 819 4,736 1,463 2,220 Aug. 6... 16,760 7,085 3,750 309 130 278 1,142 1,468 9,675 7,456 450 821 4, 725 1,460 2,219 Aug. 13.. 16, 833 7,118 3,774 311 129 279 1,143 1, 473 9,715 7,485 477 823 4,732 1,453 2,230 Aug. 20__ 16, 898 7,148 3, 795 320 127 277 1,143 1,477 9,750 7,502 455 831 4, 756 1,460 2,248 Aug. 27.. 16,950 7,160 3,808 319 123 277 1,145 1,479 9,790 7,542 489 836 4,758 1,459 2,248 Sept. 3... 16, 968 7,208 3,829 318 145 277 1,146 1,483 9,760 7,536 471 841 4,762 1,462 2,224 Sept. 10.. 16, 971 7,266 3.882 320 143 278 1,149 1.484 9. 705 7,487 433 841 4, 752 1,461 2,218 Sept. 17.. 16.946 7.317 3,927 318 133 278 1,152 1,501 9,629 7,404 384 837 4.720 1,463 2,225 Sept. 24.. 16,912 7,338 3,939 319 139 278 1,151 1,503 9,574 7,357 346 841 4,713 1,457 2,217 O Oc c t t . . 8 1 - - . . . , 7 7 , , 3 37 9 0 0 3 3 , , 9 9 6 8 5 6 3 33 2 1 5 1 1 4 3 0 7 2 2 7 7 7 7 1 1 , , 1 1 5 4 0 9 1 1 , , 5 5 0 0 4 0 9 9 , , 5 5 1 5 8 4 7 7 , , 2 3 9 3 9 9 3 34 0 1 6 8 8 4 4 8 3 4 4, , 6 6 9 9 7 3 1 1, , 4 4 5 5 3 7 2 2 , , 2 2 1 1 9 5 Oct. 15. ,944 7,461 4,021 336 151 285 1,152 1,507 9,615 7,393 393 843 4,703 1,454 2,222 Oct. 22. 1 17 7 , , 0 2 7 9 6 2 7, 457 4,012 339 157 280 1.156 1,505 9,835 7,608 394 814 4,947 1,453 2,227 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. NOVEMBER 1941 1157 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, [nterbank except interbank except interbank deposits Reserves Indi- Indi- Domestic B s w F e a R e e r n r i e a v d t k - h l e - s v C a i a n u s l h t b m a w B a n d e n i a o c s t l - k e h t - i s s ju m p D o s d a a t d s e e e n - i - - d t c s s p p u h n v a c o a a o n e i i r l p r d r r d a s t - - s - - , - , S p s d s a i i t o u i c o a n v l b a n t d i i - l e t s - - s c C c h a o e f e e i e t f n e c f r r c d i s . d t - k i ' m U G e e r . o n n v S - t - 2 . s p p u h n a c v o a a o n i e i r p r l d r r d a s t - - s - - , - , S p s d s a i i t o u i c o a n v l b a n t i d i - l e t s - - s P i s n o a g s v s t - a 2 m D a e n - b d ank T s ime b e F a i o n g r k n - s r B i o n o w g r s - - co C i a u t a c a n p - l - ts Date or month tions tions Total 101 Cities 11,499 504 3,235 21,011 20, 595 1,421 396 507 5,175 179 24 8,465 111 679 3,784 1940—SeDtpmbpr 11,294 546 3,495 24,010 23, 356 1,853 461 394 5,246 183 26 9,069 115 660 2 3,862 1941—May 10,925 585 3,479 23, 969 23, 509 1,741 518 456 5,233 175 26 9,059 114 663 1 3,873 June 10, 823 564 3,498 24, 211 23,884 1,615 526 467 5,254 163 26 9,078 113 659 1 3,873 July 10,646 547 3,476 24, 343 23,789 1,798 467 530 5,274 158 22 9,075 111 639 2 3,883 August 10, 742 556 3,575 24, 404 23, 890 1,829 493 596 5, 271 156 21 9,402 114 624 1 3,885 September 10,835 561 3,481 24, 544 24, 029 1,750 523 470 5,260 158 26 8,965 113 659 1 3,869 1941—July 30 10,662 537 3,410 24, 217 23, 546 1,735 455 502 5,273 157 25 8,981 110 649 I 3,882 Aug. 6 10, 594 556 3,539 24, 245 23, 927 1,736 471 520 5,276 157 25 9,109 112 648 [ 3,884 Aug. 13 10, 696 536 3,495 24,455 23, 897 1,825 464 533 5,276 158 20 9,106 112 631 3,883 Aug. 20 10,633 559 3,462 24, 453 23, 787 1,894 479 565 5,271 159 20 9,103 112 629 3,883 Aug. 27 10, 534 543 3,502 24, 349 23, 719 1,876 475 591 5,268 156 21 9,240 115 626 3,889 Sept. 3 10, 725 573 3,530 24, 503 23, 948 1,843 494 590 5,273 156 21 9,336 113 630 3,886 Sept. 10 10,879 551 3,676 24, 375 24,040 1,785 478 596 5,273 155 21 9,592 115 613 3,881 Sept. 17 10, 830 559 3,592 24, 390 23, 853 1,811 525 608 5,270 159 21 9,440 112 626 3,885 Sept. 24 10, 792 537 3,596 24,277 23, 894 1,906 656 580 5,267 160 21 9,557 112 624 1 3,888 Oct. 1 10,804 558 3,523 24,400 23, 788 1,857 503 442 5,285 157 21 9,496 113 633 1 3,892 Oct. 8 10,816 550 3,645 24,640 24,772 1,823 568 276 5,278 156 21 9,782 111 632 1 3,897 Oct. 15 10, 358 562 3,504 24, 382 23, 989 1,840 569 598 5,283 154 21 9,347 111 645 2 3,902 Oct. 22 New York City 6,421 84 81 9,673 9,740 249 222 35 683 42 3,702 625 1,493 940—September 5 897 89 99 11, 055 11,108 353 231 19 700 26 3 844 597 1 517 941 Mav 5 667 123 97 10, 986 11,086 291 305 19 699 22 3,860 600 1 519 5,586 107 88 1,022 1,183 247 297 18 722 21 3,846 596 1 510 July 5,316 88 87 0,910 0,995 299 251 62 740 24 3,797 577 1,518 August 5 285 86 88 0,888 0,983 299 264 111 738 24 3,883 561 1 519 September 5 589 95 84 1,100 1,251 277 298 16 735 22 3,827 597 1 508 941 Tulv SO 5 360 88 82 0,906 0,958 252 242 39 740 23 3 778 587 1 518 Aug. 6 5,263 90 85 0,788 0,997 247 265 54 740 23 3,821 586 1,519 Aug 13 5 339 85 88 0,979 1,047 338 248 66 740 24 3,799 568 1 518 Aug 20 5,302 90 93 0,965 0,977 360 248 89 739 25 3,791 568 1 516 Aug. 27 5,257 88 84 0 978 1,005 330 245 107 738 24 3 814 566 1 520 Sept. 3 5,300 91 88 0,977 1,077 309 281 107 739 26 3,855 566 1,519 Sept 10 5 315 84 93 0,781 0,937 273 229 109 739 23 3,959 551 1 518 Sept. 17 5,267 84 87 0,816 0,913 282 302 121 736 23 3,904 563 1,518 Sept 24 5,161 80 90 0,672 0,865 342 398 129 736 24 3,976 563 1,520 Oct. 1 5 157 82 87 0,701 0,784 317 284 120 747 24 3,882 570 1 522 Oct 8 5,138 81 91 0,706 1,071 289 286 124 738 25 3,975 572 1 522 Oct 15 4 985 81 93 0,564 0,735 277 321 283 735 25 3,812 587 1 523 Oct 22 Outside New York City 5,078 420 3,154 1,338 0,855 1,172 174 472 4,492 137 24 4,763 Ill 54 2,291 940—September 5,397 457 3,396 2,955 2,248 1,500 230 375 4,546 157 26 5,225 115 63 2 2, 345 941—May 5,258 462 3,382 2,983 2,423 1,450 213 437 4,534 153 26 5,199 114 63 1 2,354 June 5,237 457 3,410 3,189 2,701 1,368 229 449 4,532 142 26 5,232 113 63 1 2,363 July 5,330 459 3,389 3,433 2,794 1,499 216 468 4,534 134 22 5,278 111 62 2 2,365 August 5,457 470 3,487 3,516 2,907 1,530 229 485 4,533 132 21 5,519 114 63 1 2,366 September 5,246 466 3,397 3,444 2,778 1,473 225 454 4,525 136 26 5,138 113 62 1 2,361 941—July 30 5,302 449 3,328 3,311 2,588 1,483 213 463 4,533 134 25 5,203 110 62 1 2,364 Aug. 6 5,331 466 3,454 3,457 2,930 1,489 206 466 4,536 134 25 5,288 112 62 4 2,365 Aug. 13 5,357 451 3,407 3,476 2,850 1,487 216 467 4,536 134 20 5,307 112 63 1 2,365 Aug. 20 5,331 469 3,369 3,488 2,810 1,534 231 476 4,532 134 20 5,312 112 61 1 2,367 Aug. 27 5,277 455 3,418 3,371 2,714 1,546 230 484 4,530 132 21 5,426 115 60 1 2,369 Sept. 3 5,425 482 3,442 3,526 2,871 1,534 213 483 4,534 130 21 5,481 113 64 1 2,367 Sept. 10 5,564 467 3,583 3,594 3,103 1,512 249 487 4,534 132 21 5,633 115 62 1 2,363 Sept. 17 5,563 475 3,505 3,574 2,940 1,529 223 487 4,534 136 21 5,536 112 63 1 2,367 Sept. 24 5,631 457 3,506 3,605 3,029 1,564 258 451 4,531 136 21 5,581 112 61 1 2,368 Oct. 1 5,647 476 3,436 3,699 3,004 1, 540 219 322 4,538 133 21 5,614 113 63 1 2,370 Oct. 8 5,678 469 3,554 3,934 3,701 1,534 282 152 4,540 131 21 5,807 111 60 1 2,375 Oct. 15 5,373 481 3,411 3,818 3,254 1,563 248 315 4,548 129 21 5,535 111 58 2 2,379 Oct. 22 Demand deposits other than interbank and U. S. Government, less cash items reported as in process of collection. TJ. S. Treasurer's time deposits, open account, are combined with postal savings (time) deposits. 1158 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

WEEKLY REPORTING MEMBER BANKS—BY FEDERAL RESERVE DISTRICTS LOANS AND INVESTMENTS [In millions of dollars.] Loans Investments Loans for U. S. Government obligations Com- purchasing mer- or carrying d F i e s d tr e i r c ( a t 1 l 9 a 4 R n 1 e ) d s d er a v te 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 a d c a r i g u i i n n a a s r - d l - i l , - , p O m a k p a p e r e e t - n r br T e s o r o e k s c - uriti T e o s e l R s o e t a a a n t l s e b L a o t n a o k n s s O l t o h an e s r Total Total Bills Notes Bonds G t u a e a n e - r d - O s r e i t t c h i u e e s - r cul- and others tural dealers Boston (6 cities) Oct. 1 1,440 779 427 16 151 661 536 13 42 409 125 Oct. 8 1,464 427 16 153 681 558 35 41 412 70 123 Oct. 15 1,462 425 16 150 678 557 33 40 414 70 121 Oct. 22 1,472 778 421 16 148 694 572 40 40 422 70 122 New York (8 cities)* Oct. 1 13, 223 4,076 2,646 89 358 196 193 564 9,147 7,426 494 1,480 3,463 1,989 1,721 Oct. 8 13,166 4,108 2,678 91 360 195 193 561 9,058 7,385 483 1,445 3,462 1,995 1,673 Oct. 15 13, 284 4,206 2,709 103 404 200 192 564 9,078 7,399 456 1,454 3,483 2,006 1,679 Oct. 22 13, 330 4,175 2,702 105 382 198 193 566 9,155 7,488 428 1,450 3,594 2,016 1,667 Philadelphia (4 cities) Oct. 1 1,345 567 43 27 32 51 111 778 512 1 29 385 266 Oct. 8 1,351 568 304 42 27 32 51 112 783 515 1 29 388 268 Oct. 15 1,351 568 304 43 26 32 51 112 783 515 1 29 389 268 Oct. 22 1,364 570 303 44 31 51 113 794 526 1 29 400 268 Cleveland (10 cities) Oct. 1 2,242 870 417 23 19 185 210 1,372 1,106 181 734 183 266 Oct. 8 2,244 866 418 24 19 185 204 1,378 1,114 181 736 184 264 Oct. 15 2, 252 870 416 24 20 186 205 1,382 1,115 178 741 183 267 Oct. 22 2,272 865 413 25 19 186 205 1,407 1,142 176 764 186 265 Richmond (12 cities) Oct. 1 839 328 159 14 13 50 511 443 79 256 107 Oct. 8 843 327 158 14 13 50 516 449 80 257 108 67 Oct. 15 851 333 161 14 15 50 518 451 257 107 67 Oct. 22 865 331 161 15 13 51 88 534 468 276 107 Atlanta (8 cities) Oct. 1 741 390 200 11 127 351 235 44 117 67 116 Oct. 8 746 398 206 12 38 129 348 233 44 117 66 115 Oct. 15 766 415 214 14 134 351 237 44 116 71 114 Oct. 22 408 211 12 134 361 247 42 129 70 114 Chicago (12 cities) * Oct. 1 3,898 1,404 919 61 142 178 2,494 1,947 189 218 1,179 361 547 Oct. 8 3,906 1,401 923 60 142 175 2,505 1,958 197 223 1,178 360 547 Oct. 15 3,962 1,407 922 62 142 178 2,555 1,996 234 227 1,177 358 559 Oct. 22 4,052 1,413 918 62 143 178 2,639 2,076 227 212 1,277 360 563 St. Louis (5 cities) Oct. 1 901 451 268 12 61 82 450 339 5 36 218 80 111 Oct. 8 909 458 274 12 60 82 451 340 5 37 218 111 Oct. 15 914 464 283 12 60 81 450 338 5 36 217 112 Oct. 22 916 462 283 12 454 341 4 36 221 113 Minneapolis (8 cities) Oct. 1 483 255 135 15 228 187 21 122 41 Oct. 8 486 256 134 15 230 188 23 121 42 Oct. 15 490 259 136 15 231 190 23 124 41 Oct. 22 261 139 15 237 195 17 136 35 42 Kansas City (12 cities) Oct. 1 823 430 264 33 393 260 44 109 133 Oct. 8 830 432 266 33 398 263 42 112 100 135 Oct. 15 846 438 270 33 408 277 41 112 101 131 Oct. 22 852 443 274 33 42 114 100 129 Dallas (9 cities) Oct. 1 644 344 235 23 300 239 34 117 49 61 Oct. 8 652 349 238 24 303 241 33 117 48 62 Oct. 15 661 357 242 24 304 242 32 117 49 62 Oct. 22 357 244 24 305 243 32 122 62 San Francisco (7 cities) Oct. 1 2,546 1,130 474 387 1,416 1,071 72 808 178 345 Oct. 8 2,535 1,130 475 386 1,405 1,063 72 802 177 342 Oct. 15 2,546 1,143 486 388 197 1,403 1,061 71 799 178 342 Oct. 22 2,566 1,149 487 389 1,417 1,075 816 177 342 City of Chicago* Oct. 1 2,520 922 679 22 1,598 1,246 116 782 160 352 Oct. 8 2,526 922 684 22 1,604 1, 251 196 116 781 158 353 Oct. 15 2, 576 924 680 22 1,652 1,291 233 119 783 156 361 Oct. 22 2,640 928 677 22 1,712 1,347 226 117 848 156 365 * 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. NOVEMBER 1941 1159 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 with Cash ances mand vid- States Certi- vid- States banks Bor- Cap- Fed- in with de- uals, and fied U. S. uals, and row- ital Federal Reserve e R r e a - l vault m d e o s - tic po ad si - ts p n a e r r t - - p i o c l a i l t- a of n fi d - G er o n v - - p n a e r r t - - p i o c l a i l t- P s o a s v t - al e F i o g r n - ings co a u c n - ts distric ( t 1 9 a 4 n 1 d ) date B s a e n rv k e s banks justed1 sh an ip d s, d su iv b i - - c c h e e r c s k ' s ment2 sh an ip d s, d su iv b i - - ings 2 De- Time banks cor- sions etc. cor- sions mand pora- porations tions Boston (6 cities) 546 152 207 1,480 1,459 101 27 11 228 1 1 399 21 1 250 Oct. 1 549 152 202 1,508 1,440 123 25 8 223 1 1 396 23 1 250 Oct. 8 562 152 232 1,533 1,501 131 31 4 223 1 1 416 19 1 251 Oct. 15 523 154 200 1,515 1,439 146 28 8 228 1 1 370 20 1 252 Oct. 22 New York (8 cities)* 5,377 103 234 11,567 11,565 575 421 147 1,101 26 7 4,063 13 564 1,646 Oct. 1 5,369 108 275 11, 590 11,468 544 304 133 1,113 26 7 3,968 13 571 1,647 Oct. 8 5,358 105 294 11,615 11,795 520 307 131 1,104 27 7 4.086 13 573 1,647 Oct. 15 5,187 107 260 11,450 11,419 513 345 297 1,102 27 7 3,898 13 588 1,649 Oct. 22 Philadelphia U cities) 581 25 235 1,243 1,186 142 16 18 254 2 492 13 6 218 Oct. 1 594 26 222 1,258 1,183 142 12 13 254 2 490 13 5 218 Oct. 8 589 25 228 1,248 1,227 136 11 7 254 2 507 13 5 218 Oct. 15 574 27 229 1,267 1,217 136 18 21 254 2 475 13 5 218 Oct. 22 Cleveland (10 cities) 789 54 414 1,789 1,777 129 32 46 725 20 557 36 1 394 Oct. 1 774 55 401 1,788 1,746 130 27 33 726 20 544 36 1 394 Oct. 8 809 55 421 1,840 1,853 130 34 18 727 20 564 35 1 395 Oct. 15 765 57 404 1,828 1,797 134 33 27 728 20 536 35 1 395 Oct. 22 Richmond (12 cities) 313 26 273 671 671 68 14 33 209 3 2 421 6 102 Oct. 1 325 28 277 692 684 65 13 22 209 3 2 434 6 101 Oct. 8 326 27 283 699 714 64 19 11 209 3 2 4~0 6 103 Oct. 15 307 29 287 698 680 72 16 26 209 3 2 435 5 103 Oct. 22 Atlanta (8 cities) 193 15 269 534 518 87 6 47 188 4 3 375 3 1 98 Oct. 1 196 18 265 537 524 87 5 34 189 3 3 392 3 1 99 Oct. 8 197 17 257 558 566 80 13 15 189 3 3 401 3 2 99 Oct. 15 185 18 260 536 531 81 6 37 190 3 3 394 4 2 99 Oct. 22 Chicago (12 cities)* 1,727 81 635 3,372 3,150 420 54 124 975 25 3 1,449 9 9 427 Oct. 1 1,700 83 620 3,380 3,145 399 43 96 976 25 3 1,435 9 9 427 Oct. 8 1,652 83 628 3,410 3,288 403 65 33 977 25 3 1,482 9 9 427 Oct. 15 1,555 83 615 3,397 3,214 401 52 94 979 25 3 1,410 9 8 428 Oct. 22 St. Louis (5 cities) 233 14 202 598 627 44 11 20 187 4 2 455 1 98 Oct. 1 243 16 202 600 630 45 10 16 188 4 2 474 1 99 Oct. 8 250 15 219 623 673 44 13 11 188 4 2 482 1 99 Oct. 15 241 16 207 619 651 44 10 18 188 4 2 464 1 99 Oct. 22 Minneapolis (8 cities) 114 7 126 362 327 73 8 1 111 1 196 2 1 63 Oct. 1 115 8 129 366 334 64 8 1 111 1 200 3 1 63 Oct. 8 113 8 130 368 346 61 7 1 111 1 201 2 1 64 Oct 15 98 8 111 354 331 59 7 1 111 1 189 2 1 64 Oct. 22 Kansas City (12 cities) 208 18 319 633 624 90 12 16 140 2 1 477 6. 110 Oct. I 217 19 310 641 626 83 12 14 140 2 1 479 6 110 Oct. 8 222 18 317 656 668 84 14 10 140 2 1 494 6 110 Oct. 15 219 19 300 652 645 87 11 12 140 2 1 481 6 1 110 Oct. 22 Dallas (9 cities) 164 14 301 593 571 65 17 35 124 8 1 296 1 91 Oct. 1 165 15 287 594 576 62 14 25 124 8 1 300 1 92 Oct 8 167 14 296 609 614 62 19 13 124 8 1 316 1 92 Oct. 15 159 15 292 598 589 59 15 20 125 8 1 308 1 93 Oct. 22 San Francisco (7 cities) 547 28 331 1,435 1,419 112 38 82 1,025 65 377 23 20 391 Oct 1 557 30 333 1,448 1,432 108 30 47 1,027 63 384 23 21 392 Oct. 8 571 31 340 1,481 1,527 108 35 22 1,027 61 403 23 21 392 Oct. 15 545 29 339 1,468 1,476 108 28 37 1,029 59 387 23 19 392 Oct 22 City of Chicago 1,318 41 283 2,229 2,118 233 32 95 473 22 1,032 8 279 Oct. 1 1,305 41 277 2,239 2,118 223 24 80 473 22 1,075 7 279 Oct 8 1,237 42 281 2,243 2,211 226 32 25 473 22 1,111 8 279 Oct 15 1,178 41 281 2,247 2,160 22Q 28 73 474 22 1,051 7 279 Oct. 22 * 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. 1160 FEDERAL RESERVE BULLETIN 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 Com- Held by Based on mer- End of month p c a i p a e l r Total Accepting banks Im- G s o h o ip d p s e s d to b re e d tw in e e o n r s i t n a g n d i - st i a n n g d- Total O bi w ll n s bo B u il g ls ht Others* U S p i n t n o a i t r t t o t e e s s d E U S x fr n t p o a i o t t m e e r s d ts c D h o e a x l n - l g ar e Unit p ed oints F i c o n o r u ei n g - n States tries 1940—June 224 206 166 112 54 40 79 43 13 36 34 July . ... 232 188 152 103 49 36 75 32 13 35 32 August 245 182 148 103 44 34 80 24 11 38 29 September 251 177 142 100 42 35 80 22 11 35 28 October. . 252 187 149 96 53 38 91 20 11 37 28 November 232 197 159 99 60 38 98 20 9 41 29 December 218 209 167 100 67 42 109 18 10 44 27 1941—January _-. . 232 213 168 103 65 45 115 16 11 44 26 February _ _ 241 212 164 99 65 48 119 18 7 42 26 March 263 217 170 107 63 47 120 24 8 41 25 April 275 220 170 105 66 49 126 25 7 38 23 May ___ 295 215 164 105 60 51 125 24 3 41 22 June 299 213 161 101 59 52 123 24 3 43 20 July . 330 210 161 106 55 49 121 22 3 47 16 August... _ _ - _ - _- 354 197 148 100 47 50 114 21 3 49 11 September 371 177 131 85 46 46 105 13 4 45 9 5As reported by dealers; includes some finance company paper sold in open market. 2 None held by Federal Reserve Banks. 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 fMerober firms of New York Stock Exchange. Ledger balances in millions of dollars] Debit balances Credit balances Debit Debit cre C d u it s t b o a m la e n r c s e ' s 1 Other credit balances End of month C b u a ( s d n l t e a e o b n t m ) i c t e e i s rs' a i b n n p a a v d c l 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 n i ' n g t a i b n n a a v d c la e c f n s i t o r r c t u m a m e n d s e t i s n n in g t C a b h a n a s a d n h n k d i o n s n r M o b w o o n e r d - e y a Free O (n th et e ) r m p i a e n r n v t I t n n e a e s n t r - s d ' m i e n f n v i I t r n e m a s n t- d a c c a c p I o n i u ta n l ts trading trading (net) accounts accounts 1935—December 1,258 75 135 179 930 286 79 24 10 410 1936—June 1,267 67 164 219 985 276 86 24 14 420 December 1,395 64 164 249 1.048 342 103 30 12 424 1937—June 1,489 55 161 214 1,217 266 92 25 13 397 December 985 34 108 232 688 278 85 26 10 355 1938—June 774 27 88 215 495 258 89 22 11 298 December 991 32 106 190 754 247 60 22 5 305 1939—June 834 25 73 178 570 230 70 21 6 280 December 906 16 78 207 637 266 69 23 7 277 1940—June 653 12 58 223 376 267 62 22 5 269 September 635 12 57 218 370 268 56 20 5 255 October 653 12 70 203 381 269 58 20 5 253 November 666 12 64 214 383 280 59 20 4 253 December 677 12 99 204 427 281 54 22 5 247 3941—January 661 11 73 207 399 275 54 22 6 238 February 634 11 78 199 375 267 53 22 6 237 March 633 9 81 199 387 268 56 21 6 231 April .__ 606 10 86 199 368 265 60 20 8 227 Mav 622 10 102 185 403 262 61 17 7 223 June 616 11 89 186 395 255 65 17 7 222 July 628 10 87 189 388 266 70 17 8 221 August 628 10 160 189 460 262 72 16 7 221 September 633 10 83 196 396 260 78 16 8 219 1 Excluding balances with reporting firms (1) of member firms of New York Stock Exchange and other national securities exchanges and (2) of firms' own partners. 2 Includes money borrowed from banks and also 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 or 1Q37 (table 69). NOVEMBER 1941 1161 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 Average Average yield [Per cent per annum] rate1on- rate on- on 3-to-5 year Stock U u . r y S b . i 9 l T l 1 s - r d s e a a y s- Tr n U e o a . t s e S u s . ry 1 T 9 o c t i a ti l es Y N C o e it r w y k E e 7 N r c a n o o i s t t r t i a h t e e n h e s r d n - r 1 W e 1 r c n e i S t s i o a t e e u n s r d t n h- Prime Prime ex- Year, com- bank- change 1934 average1 3.45 2.45 3.71 4.32 month, or mercial ers' call New Tax- 1935 average1 ._. 2.93 1.76 3.39 3.76 week paper, accept- loan issues Deal- ex- Tax- 1936 average1 2.68 1.72 3.04 3.40 4 to 6 ances, re- of- ers' empt able 1937 average1 2.59 1.73 2.88 3.25 months 90 new- fered quo- 1938 average1.. _. 2.53 1.69 2.75 3.26 days als 2 within tation 1939 average 2.78 2.07 2.87 3.51 period 1940 average... 2.63 2.04 2.56 3.38 Monthly figures* 1938—June 2.56 1.70 2.78 3.31 1938 average .81 .44 1.00 .053 .07 .83 July 2.57 1.70 2.78 3.35 1939 average .59 .44 1.00 .023 .05 .59 August 2.52 1.67 2.71 3.28 1940 average .56 .44 1.00 .014 .04 .50 September 2.53 1.70 2.74 3.26 1940—Sept. .56 .44 1.00 .021 .05 .48 October 2.57 1.70 2.90 3.21 Oct .56 .44 1.00 (4) .02 .43 November 2.49 1.70 2.68 3.20 Nov .56 .44 1.00 .003 .02 .34 December 2.60 1.70 2.95 3.23 Dec. .56 .44 1.00 .02 .35 .65 1939—January 2.64 1.73 2.97 3.32 1941— F Ja e n b . . 5 5 6 6 . . 4 4 4 4 1 1 . . 0 0 0 0 . ( 0 4) 34 . .0 0 4 2 . .5 4 5 3 . . 7 8 6 1 February 2.52 1.70 2.69 3.26 Mar. .56 .44 1.00 .089 .11 .50 .84 Quarterly figures April .56 .44 1.00 .092 .10 .52 .81 1939—March..__ 2.95 2.13 3.05 3.77 May .56 .44 1.00 .082 .11 .44 .72 June 2.91 2.15 3.05 3.62 June . . .56 .44 1.00 .089 .12 .38 .68 September 2.68 2.04 2.78 3.31 July .50 .44 1.00 .097 .12 .37 .67 December 2.59 1.96 2.59 3.32 Aug .50 .44 1.00 .108 .13 .33 .62 Sept .50 .44 1.00 .055 .10 .34 .62 1940—March 2.65 2.03 2.67 3.35 June 2.59 2.00 2.49 3.38 Week ending: September 2.68 2.14 2.56 3.43 Oct. 4 Vie 1.00 .002 .11 .38 .66 December 2.59 2.00 2.53 3.36 Oct. 11.__ Vie 1.00 .001 .07 .39 .69 Oct. 18. __ Vie 1.00 .024 .06 .41 .72 1941—March 2.58 2.06 2.53 3.25 Oct. 25... Vie 1.00 .067 .06 .41 .73 June 2.55 1.95 2.58 3.23 September 2.60 1.98 2.62 3.29 1 Monthly figures are averages of weekly prevailing rates. 2 The average rate on 90-day stock exchange time loans was 1.25 per 1 Prior to March 1939 figures were reported monthly on a basis not cent during the entire period. strictly comparable with the current quarterly series. 3 Tax-exempt bills prior to March 1941; taxable bills thereafter. 4 Rate negative. tio B n a c a k n d fi f g o u r r e b s a — ck S e f e ig u N re o s v . ember 1939 BULLETIN, pp. 963-969 for descrip- Back figures.—See Annual Report for 1937 (tables 43 and 44). Figures for Treasury bills and Treasury notes available on request. BOND YIELDS' [Per cent per annum] Corporate (Moody's)5 U.S. High- Year, month, or week Govern- M ip u a n l i s c- c g o r r a p d o e - By ratings By groups ment 2 rate4 Total Indus- Rail- Public Aaa Baa trial road utility Number of issues. 2-6 120 30 30 30 40 40 1938 average 2.56 2.91 3.12 4.19 3.19 3.56 4.22 5.80 3.50 5.21 3.87 1939 average 2.36 2.76 2.92 3.77 3.01 3.22 3.89 4.96 3.30 4.53 3.48 1940 average 2.21 2.50 2.77 3.55 2.84 3.02 3.57 4.75 3.10 4.30 3.25 1940—September. 2.18 2.44 2.71 3.50 2.82 3.01 3.52 4.66 3.10 4.23 3.19 October 2.10 2.32 2.70 3.46 2.79 3.01 3.48 4.56 3.06 4.15 3.18 November. 1.97 2.18 2.65 3.40 2.75 2.96 3.40 4.48 2.98 4.07 3.14 December.. 1.89 2.07 2.59 3.36 2.71 2.92 3.36 4.45 2.93 4.03 3.13 1941—January 1.99 2.16 2.57 3.36 2.75 2.95 3.36 4.38 2.96 3.96 3.17 February.. 2.10 2.27 2.71 3.40 2.78 3.00 3.38 4.42 3.00 4.00 3.19 March 2.01 2.28 2.73 3.39 2.80 3.01 3.37 4.38 3.02 3.98 3.17 April 1.96 2.20 2.76 3.39 2.82 3.04 3.38 4.33 3.06 3.96 3.16 May 1.92 2.14 2.75 3.37 2.81 2 99 3.34 4.32 3.02 3.95 3.13 June 1.91 2.08 2.70 3.34 2.77 2.'95 3.31 4.31 2.96 3.95 3.10 July 1.90 2.03 2.66 3.30 2.74 2.90 3.26 4.28 2.90 3.92 3.07 August 1.94 2.00 2.65 3 29 2.74 2.90 3.24 4.27 2.90 3.92 3.06 1.94 1.99 2.64 3.30 2.75 2.91 3.24 4.30 2.88 3.95 3.07 September- Week ending: 1.92 1.96 2.63 3.29 2.74 3.23 4.31 2.87 3.95 3.06 Oct. 4 1.90 1.92 2.62 3.28 2.73 3.21 4.27 2.85 3.93 3.05 Oct. 11.... 1.90 1.90 2.60 3.28 2.73 2.88 3.21 4.28 2.85 3.93 3.05 Oct. 18 1.87 1.90 2.61 3.28 2.73 2.88 3.21 4.28 2.85 3.92 3.06 Oct. 25 1 Monthly and weekly data are averages of daily figures, except for municipal bonds, which are based on Wednesday figures. 2 Average of yields on all outstanding partially tax-exempt U. S. Government bonds due or callable in more than 12 years. 3 Standard and Poor's Corporation. 4 U. S. Treasury Department. s Moody's Investors Service, week ending Friday. Because of limited number of suitable issues, the industrial Aaa and Aa groups have been reduced from 10 to 4 and 10 to 3 issues respectively, and the railroad Aaa and Aa groups from 10 to 5 and 10 to 9 issues respectively. Back figures.-—See Annual Report for 1937 (table 80) and for high-grade corporate bonds, Bulletin of the Treasury Department for July 1941, pages 21-24. Figures for U. S. Government bonds available on request. 1162 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SECURITY MARKETS1 Bond prices Stock prices 6 Vol- Corporate 4 Common (index, 1935-39—100) u t m ra e d - of Year, m we o e n k th, or U G . o S v . - Munic- Medium and lower-grade Pre- in (i g n 7 m e e r n n t - 2 ipal 3 H gr i a g d h e - Indus- Rail- Public fa D ul e t - ed ferred l Total In tr d i u al s- R ro a a i d l- P ut u i b li l t i y c s s a t h n h a d o re s u s - o ) f Total trial road utility Number of issues. 2-6 10 15 402 354 28 1938 average. 102.5 113.7 111.1 83.4 86.7 72.2 91.6 15.1 161.4 1,104 1939 average 105.2 116.3 113.8 89.5 91.2 78.1 99.3 13.8 167.5 977 1940 average 107.2 121.2 115.9 94.8 97.3 83.8 103. 5 14.0 169.2 767 1940—September. 107.7 122.3 116.5 96.3 98.3 85.1 105. 3 14.5 168.6 553 October 108.8 124.6 117.2 97.7 101.1 86.4 105.9 15.0 170.8 599 November. 110.7 127.3 118.0 98.5 103.0 86.8 105. 9 15.3 171.6 1,044 December,. 111.8 129.3 117.7 98.1 102. 8 86.2 105. 3 16.4 176.2 814 1941—January 110.4 127.8 117. 7 99.2 103.0 89.0 105. 6 17.9 177.9 564 February.. 108.8 125.6 116.7 97.5 101.7 87.1 103. 8 17.5 172.9 444 March 110.1 125.4 116.9 98.4 102.2 88.4 104.6 19.3 171.5 440 April 110.8 126.8 116.8 99.5 103.1 89.5 106. 0 20.7 170.8 495 May 111.4 128. 2 117.0 99.3 102.4 89.4 106. 2 21.0 168.9 420 June 111.5 129. 5 117.7 99.2 103.3 87.9 106. 3 21.6 168.9 463 July 111.7 130. 4 118.7 104.8 87.8 107.1 23.9 173.1 757 August 111.1 131.0 118.5 104.9 86.8 107.3 24.9 174.3 473 September 111.1 131.2 118.1 18.O 105.1 84.5 107.2 24.4 173.4 84 599 Week ending: Oct. 4 111.4 131.9 118.6 99.1 105.3 84.6 107.3 24.7 172.4 431 Oct. 11 111.7 132.8 118.7 99.4 105.5 85.3 107.3 25.2 172.4 548 Oct. 18 111.7 133.3 118.8 98.9 105.3 84.5 106. 8 24.8 172.4 620 Oct. 25 112.1 133.3 118.9 99.1 105.3 85.0 107.2 25.3 172.0 594 r Revised. 1 Monthly and weekly data are averages of daily figures, except for municipal bonds and for stocks, which are based on Wednesday figures. 2 Prices derived from average of yields on all outstanding partially tax-exempt U. S. Government bonds due or callable in more than 12 years on basis of a 2% per cent, 16 year bond. For description see November 1940 BULLETIN, pp. 1179-1180. Prices expressed in decimals. 3 Prices derived from average yields, as computed by Standard and Poor's Corporation. 4 New series beginning with 1937 as published by Standard and Poor's Corporation. Prices derived from averages of median yields. 5 Prices derived from averages of median yields on noncallable high-grade stocks on basis of a $7 annual dividend. e Revised series, as published by Standard and Poor's Corporation. Figures for preferred stocks have been revised beginning with February 1928; the common stock indexes have been converted from a 1926 to a 1935-39 base, and substitutions have been made in the list of stocks. Figures on number of issues relate to stocks in indexes at the present time. 7 Average daily volume of trading in stocks on the New York Stock Exchange. Back figures.—For United States Government bonds, see November, 1940 BULLETIN; for municipal bonds, see Annual Report for 1937 (table 79). CAPITAL ISSUES [In millions of dollars! For new capital For refunding Total Domestic Domestic (new Total Total Y m e o a n r t o h r fu i a r n n n e g - d d ) - m e ( a f i d e o n g o s r d n - t - ) ic Total S n m a p t i n a a c u d l t i - e - a c F e g i e e r e a s d n l - - i Total Co B n r a p o o n o t n d e r d s a s te Stocks e F ig o n r - 2 m e a ( f i e d o g n s o r n d - t - ) ic Total S n m a p t i n a c a u d l t i - - e a c F e g i e e r e a s d n l - - i Total Co B n r a p o o n o t n d e r d s a s te Stocks F ei o g r n - 2 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 4,449 2,360 2,325 971 481 873 807 67 35 2,089 2,061 129 665 1,267 1, 236 31 28 1939 5,842 2,289 2,239 931 924 383 287 97 50 3,553 3,465 195 1,537 1,733 1,596 137 88 1940 4,804 1,956 1,954 757 461 736 601 135 2 2,848 2,848 478 344 2,026 1,834 193 0 1940— Sept.... 229 114 114 46 0 68 64 4 0 116 116 24 26 66 64 1 0 Oct 711 258 258 98 112 48 22 26 0 453 453 80 28 345 332 14 0 Nov.— 442 264 264 53 42 169 166 3 0 178 178 25 59 94 68 26 0 Dec 613 191 191 129 0 62 46 16 0 422 422 73 14 335 292 43 0 1941—Jan 421 95 95 40 2 53 51 2 0 325 325 23 31 271 269 3 0 Feb 347 77 77 37 8 32 25 6 0 270 270 26 17 227 210 17 0 Mar.... 406 182 182 86 9 87 56 31 0 223 219 93 11 115 84 32 4 Apr 920 745 745 60 645 39 29 10 (3) 175 175 40 28 107 107 0 0 May... 406 107 107 37 5 64 61 3 0 299 299 74 28 197 162 35 0 June.. 881 519 519 59 370 90 77 14 (s) 362 362 26 223 113 108 5 0 July.— 612 296 296 40 212 44 30 13 (3) 316 316 14 216 86 76 11 0 Aug 471 360 360 33 0 327 324 4 0 110 110 11 25 74 73 2 0 Sept.... 273 65 65 31 0 34 22 12 0 209 209 20 27 161 156 6 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). NOVEMBER 1941 1163 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

UNITED STATES GOVERNMENT DEBT—VOLUME AND KIND OF DIRECT SECURITIES [On basis of daily statements of United States Treasury. In millions of dollars] Marketable public issues x Nonmarketable public issues Special issues Noninterest bearing debt Total E m n o d nt o h f T d g o r e t o b a s t l s i b n e d te a e r r b i e n t s - g t Total T b u r i e r l y a ls s- T n u r o e r t y a e s s - b T o u r n e ry d as s - 2 p s b P a r a o o e v n n s w i d t n d a a s g l r s Total 3 b U s i o n a . n g v S d s - . s T n u o r ta e r t y e x a s s- j b u s o e A i s c n r t e d v e d - - d s Total s S e o i c c t u y ia r 4 - l Other5 t M ure a d - Other 1932—June.-_ 19,487 19,161 618,852 616 1,261 13,460 790 309 309 60 266 1933—June.-- 22, 539 22,158 6 21,834 954 4,548 13, 417 806 323 323 66 315 1934—June.-- 27,053 26, 480 e 26,084 1,404 6,653 15, 679 831 396 396 54 518 1935—June--- 28, 701 27, 645 26, 950 2,053 10,023 14,019 855 62 62 633 633 231 825 1936—June__- 33,779 32,989 31,102 2,354 11,381 17,168 200 1,261 316 945 626 19 607 169 620 1937—June--- 36, 425 35, 800 33,054 2,303 10, 617 19,936 198 1,188 800 389 1,558 579 979 119 506 1938—June.-- 37,165 36, 576 32, 344 1,154 9,147 21, 846 197 1,556 1,238 319 2,676 1,601 1,075 141 447 1939—June-_ _ 40, 440 39,886 33, 965 1,308 7,243 25, 218 196 2,151 1,868 283 3,770 2,511 1,258 142 411 1940—June.-- 42, 968 42, 376 34,436 1,302 6,383 26, 555 196 3,166 2,905 261 4,775 3,528 1,247 205 386 1940—Sept. _- 44, 073 43, 480 35,119 1,303 6,384 27, 235 196 3,298 3,044 254 5,063 3,751 1,312 212 381 Oct 44,137 43, 560 35,123 1,307 5,660 27,960 196 3,336 3,084 252 5,102 3,777 1,325 197 380 Nov.— 44, 273 43, 707 35,124 1,308 5,660 27, 960 196 3,374 3,123 251 5,209 3,885 1,324 187 379 Dec.--. 45, 025 44,458 35, 645 1,310 6,178 27, 960 196 3,444 3,195 249 5,370 4,047 1,322 189 377 1941—Jan 45, 877 45, 320 36, 276 1,307 6,813 27, 960 196 3,619 3,371 248 5,426 4,066 1,359 181 376 Feb.__. 46, 090 45, 535 36, 275 1,306 6,813 27, 960 196 3,727 3,480 247 5,534 4,174 1,359 180 374 Mar— 47,173 46, 581 37,054 1,604 5,722 29,532 196 3,844 3,599 245 5,683 4,324 1,359 220 372 Apr..__ 47, 231 46, 673 37,075 1,603 5,721 29,554 196 3,891 3,647 244 5,707 4,354 1, 353 186 372 May.-. 47, 721 47,160 37,075 1, 603 5,721 29, 554 196 4,251 4,008 243 5,834 4,485 1,349 190 370 June_-_ 48, 961 48,387 37,713 1,603 5,698 30, 215 196 4, 555 4,314 241 6,120 4,728 1,392 205 369 July.._ 49, 513 48, 965 37, 713 1,603 5.698 30,215 196 4,929 4,649 239 6,324 4,811 1,512 180 368 Aug.— 50,921 50, 371 37, 667 1,604 5,698 30,169 196 6,234 4,908 1,037 237 6,470 4,941 1,528 184 367 Sept.-- 51, 346 50, 791 37, 368 1,305 5, 698 30,169 196 6,765 5,132 1,343 236 6,658 5,126 1,532 190 365 1 Including amounts held by Government agencies and trust funds which aggregated $2,103,000,000 on Aug. 31, and $2,105,000,000 (preliminary) on Sept. 30, 1941. These amounts exclude holdings by production credit associations and joint stock land banks. 2 Including Liberty bonds. 3 Beginning with July 1941 includes depositary bonds not shown separately which amounted to $54,000,000 on Sept. 30. 4 Including special issues to Federal old-age and survivors insurance trust fund, unemployment trust fund, and railroad retirement account. 5 Including special issues to Government life insurance fund, adjusted service fund, national service life insurance fund, Government employees' retirement funds, Postal Savings System, Federal Deposit Insurance Corporation, and Federal Savings and Loan Insurance Corporation. « Including certificates of indebtedness not shown separately: 1932, $2,726,000,000; 1933, $2,108,000,000; 1934, $1,517,000,000. SECURITIES FULLY GUARANTEED BY UNITED STATES GOVERNMENT, BY ISSUING AGENCIES1 [In millions of dollars] Tnterest-bearing Non- Total interest End of month o a u m t i s n o t g a u n n d t - Total M C F o F o e t r a d i r p o t r e g o m n r a r a a g l - e C O H o L w t r i o o p o n m a o n e n r r e a s' - s C F t R r o i t u n e r i p c 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- H A o u U u t i . s t h i o y S r n . - g H i A F st o e d r d u a m e s ti i i r o n n a n g l - m be a d a t e u r b i r n t e s g d 1934—June 681 312 134 235 December.. 3,063 980 1,834 249 1935—June 4,123 1,226 2,647 250 December _. 4,494 1,387 2,855 252 1936— D Ju e n c e ember.. 4 4 , , 7 6 1 6 8 2 1 1 , , 4 4 2 2 2 2 2 3 , , 9 04 8 4 8 2 2 5 5 2 2 1937—June 4 4 , , 6 6 4 6 5 5 1 1, , 4 4 1 2 0 2 2 2 , , 9 9 3 8 7 7 2 2 5 9 5 7 December.. 1938—June 4 4, , 9 8 9 5 2 3 1 1 , , 3 4 8 1 8 0 2 2 , , 8 9 8 3 8 7 2 5 9 0 9 9 2 2 0 0 6 6 1 1 December.. 5, 450 1,379 2,928 820 206 114 3 1939—June 5,704 5,621 1,269 2,731 1,096 407 114 4 83 December,. 5,529 5,498 1,269 2,603 1,096 407 8 31 1 1 1 9 9 9 4 4 40 0 1 — — — J S A N M D F A J O M J S J u u e u e u a o p c e e a a n l p n b n t g r c v p y r y e o t e i u r u c e e t e l . b e u a . h m s m m e m r _ t a y r _ b b b r b . y . e e e _ e r r . r _ r . . . . . . . . . . . 5 5 5 5 5 5 5 6 6 6 6 6 6 , , , , , , , . , , , , , 9 9 8 9 9 9 5 8 3 9 9 9 3 1 1 1 1 1 1 6 0 7 3 3 3 7 7 4 0 9 5 6 0 0 8 9 7 7 1 5 5 5 5 5 6 5 5 6 6 6 6 6 , , , , , , , , , , , , , 7 9 9 9 9 3 3 9 9 9 7 9 0 8 0 0 0 5 5 2 6 3 2 9 0 1 7 1 1 1 5 9 9 0 0 8 0 5 0 1 1 1 1 1 1 1 1 1 1 1 1 1 , , , , , , , , , , , , , 2 2 2 2 2 2 2 2 2 2 2 2 6 6 2 6 6 6 6 6 6 6 6 6 6 6 9 9 9 9 9 9 9 9 9 9 9 9 9 2 2 2 2 2 2 2 2 2 2 2 2 2 , , , , , , , , , , , , , 6 6 6 6 6 6 6 4 4 4 4 6 4 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 0 0 0 0 9 9 9 9 2 9 1 1 1 1 1 1 1 1 2 2 1 1 2 , , , , , , , , , , , , , 0 0 0 0 0 0 0 7 7 7 1 1 1 9 9 9 9 9 9 9 4 4 4 0 0 0 7 7 7 7 7 7 7 1 1 1 1 1 1 6 6 6 6 6 6 6 6 6 9 6 9 9 9 9 9 9 9 9 9 9 9 0 9 0 0 6 6 6 6 6 6 6 6 6 7 6 5 5 1 2 2 1 2 2 2 2 2 2 2 2 2 1 2 1 2 2 2 2 2 2 2 2 2 2 4 6 4 6 6 6 6 6 6 6 6 6 6 1 1 1 1 1 1 1 1 1 1 1 1 9 2 3 3 2 6 3 7 7 7 8 7 7 2 1 1 1 1 1 1 1 1 1 1 1 9 8 5 8 4 3 1 9 0 2 1 0 1 Principal amount of obligations guaranteed as to interest and principal. Excludes obligations held by U. S. Treasury and reflected in the public debt. 2 Figures on matured debt were not published prior to September 1939. 3 Less than $500,000. 1164 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MATURITIES OF PUBLIC MARKETABLE SECURITIES OF U. S. GOVERNMENT, DIRECT AND FULLY GUARANTEED, SEPTEMBER 30,1941 [In millions of dollars] Direct securities maturing Fully guaranteed securities maturing Total Treas- fully Ma c t a u ll r a i b n l g e or Total T b u r i e r l y a ls s- T n u r o e r t y a e s s - T u re r a y s B - ond P S P s r a a e o v n - s i w d t n a g a l s r c d b a u o u ll e n r a y d b o s l r e* Total 2 C F M F a e o g t d a r a o i p r e o g r m o n r e t a - r- l C O H a L o w t o r o i n p o m a o e n n e r r- s' F C R s i a o t t n e t i r r c i o a u p o o n n o c n n c - r - e - C m C C a o o r t r o e i d p o m d i o n t i - r y t - H A o U u u i . t t s h y i S o n . r g - c a s d a g e n u l t u c l t i e a e e u a b s e r r o - i l d r e^ 1941— Oct. l-Dec.31... 1,509 1,305 204 616 300 204 112 616 1942—Jan. 1-Mar.31___ 426 426 (3) 310 310 650 Apr. 1-June 30. „ July 1-Sept. 30 342 342 (3) 276 276 1,151 Oct. 1-Dec. 31... 232 232 320 320 320 1943 1,396 1,396 (3) 1,855 614 324 289 614 1944 1,849 1,849 (3) 2,555 1,561 875 571 114 2,394 1945 3,191 1,249 1,941 (3) 1,755 412 412 1,167 1946 1,535 1,519 16 2,344 1947 2,384 2,370 14 1,460 1,095 340 755 1948 1,489 1,487 2 3,361 1949 821 819 2 2,278 835 835 1950 1,689 1,687 2 1,186 1951 1,230 1,223 7 3,500 1952 2, 454 2, 436 18 1,024 779 779 1953 2,932 2,904 27 725 1954 3.709 3,687 22 681 1955 1,515 1,480 35 2,611 1956 1,170 1,170 2,431 1958 1,449 1,449 919 1959 982 982 1960 2,611 2,611 1,485 1961 50 50 1963 919 919 1964 95 95 1965 1,485 1,485 Total... 37, 368 1, 305 5,698 30,169 196 30,169 6,911 1,269 2,409 2,101 905 226 6,911 Within 1 year 2,278 1,305 973 (3) 1,202 886 204 112 2,417 1 to 5 years 8,202 4,726 3,460 17 8,509 2,906 875 1,216 701 114 4,494 5 to 10 years_. 7,613 7,585 28 10,667 1,930 1,175 755 10 to 20 years 16, 871 16, 719 152 10,993 779 779 Over 20 years 2,404 2,404 95 95 1 Securities not callable prior to maturity are shown as of date of maturity. 2 Excluding debentures of Federal Housing Administration, which amounted to $18,000,000 on September 30. a Less than $500,000. OWNERSHIP OF UNITED STATES GOVERNMENT SECURITIES, DIRECT AND FULLY GUARANTEED [In millions of dollars] Held by Federal Privately held i agencies and trust 1unds Held Other investors2 Total by End of interest- Federal month bearing Reserve Other Mutual Insur- u. s. securities Banks Total Member com- savings ance Savings Special Public banks mercial banks com- Market- and issues issues banks panies 2 able adjusted issues2 service bonds 1930—June 15,922 764 208 591 14,359 4,061 920 520 8,900 1931 June 16,520 291 144 668 15,417 5,343 670 650 8,800 1932—June 19,161 309 261 1,784 16,807 5,628 590 680 800 9,100 IQQQ—June 22,158 323 366 1,998 19, 471 6,887 590 720 1,000 10, 300 1934—June 27,161 396 1,055 2,432 23, 278 9,413 890 970 1,500 10,500 1935—June 31,768 633 1,365 2,433 27, 337 11, 429 1,290 1,540 2,600 10,400 100 1936—June 37, 707 626 1,703 2,430 32,948 13,671 1,600 2,050 3,900 10,500 1,200 December 38,362 632 1,820 2,430 33,480 13, 545 1,710 2,330 4,500 10,500 900 1937—June 40,465 1,558 2,036 2,526 34, 345 12,689 1,870 2,390 5,000 11,300 1,100 December 41,353 2,227 2,049 2,564 34, 513 12, 371 1,790 2,450 5,200 11, 500 1,200 1938—June 41,428 2,676 2,123 2,564 34,065 12, 343 1,700 2,690 5,200 10,700 1,400 December 43, 891 3,156 2,198 2,564 35, 973 13, 222 1,850 2,880 5,600 10,800 1,600 1939—June 45, 336 3,770 2,138 2,551 36, 877 13, 777 1,920 3,040 5,800 10,400 1,900 December 47,067 4,231 2,323 2,484 38,029 14,328 1,970 3,100 6,000 10,400 2,200 1940—June 47,874 4,775 3 2, 292 2,466 38, 341 14, 722 1,830 3,110 6,100 9,700 2,900 December 50, 360 5,370 3 2, 250 2,184 40, 556 15,823 1,940 3,220 6,500 9,900 3,200 1941—June 54, 747 6,120 3 2, 360 2,184 44,083 18, 078 ••2,020 r3, 430 6,600 9,700 4,300 r Revised. i Estimated figures for other commercial banks and mutual savings banks have been rounded to nearest 10 millions and estimated figures for insurance companies and other investors have been rounded to nearest 100 millions. * Holdings of insurance companies included with "Other investors" prior to 1932. 3 Excluding holdings of production credit associations and joint stock land banks. NOTE.—For end of June figures 1916-1929, see BULLETIN for July 1941, p. 664. NOVEMBER 1941 1165 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SUMMARY OF TREASURY OPERATIONS [On basis of daily statements of United States Treasury. In millions of dollars] General and special accounts Trust Lncrease or deac- crease during ]Receipt Expenditures (excl. debtretirements) counts period etc.,2 Excess excess Period c ta o I x n m e - e s n i c M n e n e t o l a i e l s u l a r - s - - s S t e a o i c x t c y u e ia r s - l o A th l e l r c T e r o i e p t - a t l s ce N r i e p e - t t s* I d n e o e t s n e b t r t - t f i N e d o n e n a s - - a e l m A t j c A u u u g e r s d l r a n t - - i - l t - m p e U l r m e o e n - n y - - t - c T f t e o r r a r u u a s c n n s - t t s t o s - o A th l e l r Total* d e ( c i o x + t e f p u i ) e r p r o e n e t s s r - - p ( c o t + e e u e f n i r x ) p r e d o - e t s i s - r - f G b e u r a e n a l n d - l - d G e r b o t s s 3 reve- Pro- lief etc.i (-) ance2 nue gram * Fiscal year ending: June 1938— 2,640 2,279 755 567 6,242 5,\355 )26 1,029 362 1,914 220 2,788 7 239 -1,384 +306 -338 +740 June 1939—_ 2,189 2,232 740 507 5,668 5,L65 <HI 1,206 787 2,595 182 2,996 8 707 -3, 542 +890 +622 +3,275 June 1940... 2,125 2,345 838 617 5,925 5,387 1, ()41 1,657 1,002 1,919 r226 3,153 8 998 -3,611 +136 -947 +2, 528 June 1941.._ 3,470 2,967 932 900 8,269 7,607 Lll 6,080 - 877 1,741 r325 2,577 12, 711 -5,103 -148 +742 +5, 994 3 months ending: Sept. 1940-. 519 796 208 121 1,645 1 L189 ]88 621 -192 432 r161 688 2 283 -794 +213 +524 +1,105 Sept. 1941.. 922 798 258 167 2,145 )44 203 3,404 103 346 189 756 5 001 -3,057 +304 -368 +2, 385 1940—Sept. _ 432 213 29 37 711 -rn ]L48 225 -70 139 -15 162 759 -48 -158 -39 +168 Oct... 44 237 38 47 365 333 73 297 103 145 251 869 -536 -24 -495 +64 Nov.. 49 252 138 46 485 562- 11 379 108 138 20 162 817 -455 +216 -103 +136 Dec. 429 231 34 46 741 r40 219 470 110 155 218 1,172 -432 -209 +111 +752 1941—Jan.. _ 63 210 47 52 372 ;340 25 569 103 146 18 251 1 111 -771 +15 +97 +852 Feb.. 104 204 193 172 674 541 21 584 96 138 20 217 1,075 -534 -3 -324 +213 Mar.. 1,208 273 34 52 1,567 i 566 L50 748 102 159 10 229 1,399 +167 -236 +1, 014 +1,083 Apr.. 75 244 43 240 602 565 73 763 71 148 18 242 1315 -750 +403 -290 +58 May 63 254 165 58 541 ;394 12 837 39 145 108 1 141 -747 -264 —521 +490 June 916 265 32 64 1,277 276 339 812 32 135 211 1528 -252 -259 +729 +1, 241 July . 84 268 48 56 456 113 25 960 -44 132 r169 268 1 598 -1,185 +599 -34 +551 Aug.- 59 269 173 54 554 397 9 1,124 -27 106 -14 250 1 529 -1,133 -2 +274 +1, 408 Sept.. 780 261 37 58 1,136 1,L35 L69 1,320 32 109 6 238 1874 -739 293 -607 +425 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 - e u 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 ac N co e u t n e t x s p o e f n G di o tu v r e e r s n m in e c n h t e a c g k e i n n c g ies All other Period In- Net In- Bene- In- Other st R ru ec c o ti n o - n m C o o d m it - y U S n ta i t t e e s d Ex- Total m c o r e e n n - t S io e r i a g g n e - w b i n o a r l g K - ce r i e p - ts m ve e s n t t - s m p e a n y t - s ce • r p t i c p - ts m ve e s n t t - s p tu e e r x n e - d s i- C F o i t n r i p a o o n n r c a e - C C o t r r i p e o d o n r it a- t i H h ng o o r u A i s t u y - - o A t A h l l e 11 r ceipts p tu e r n e d s i- gold ance Fiscal year ending J : une 1938. __ 550 t161 85 r63 560 191 *9 *184 1 •12 414 327 2,216 142 446 1,628 June 1939___ 339 516 •120 I338 395 442 *658 136 *60 *186 440 324 2,838 142 536 2,160 June 1940. __ ro3 573 ;129 <J59 443 514 *234 10 17 -174 -458 -358 1,891 143 585 1,163 June 1941... i344 337 186 1,L14 563 555 80 58 121 r*41 -674 -622 2,633 143 605 1,885 : 3 months end- Se i p n t g . : 1940 <212 L44 40 268 80 191 13 435 34 -*68 -196 -164 2,415 143 592 1,680 Sept. 1941 <248 L92 54 282 206 78 •16 *173 *2 *79 269 235 2,266 143 611 1,511 1940—Sept. 11 L48 14 67 18 81 *13 •1 15 -18 -37 -28 2,415 143 592 1,680 Oct 32 *5 15 L07 31 84 *10 21 *13 29 17 1 920 143 595 1,183 Nov L43 *5 15 L45 113 31 59 24 *103 *50 18 6 1,817 143 596 1,078 Dec - 1 L51 15 51 11 33 15 17 8 21 35 25 1,928 143 597 1,188 1941—Jan. 42 40 15 78 29 41 16 12 32 *43 38 50 2,025 143 599 1 283 Feb ]52 *5 16 L49 113 43 160 7 *30 33 42 1,701 143 601 957 Mar 11 L60 17 28 *10 37 64 37 25 *56 46 49 2,715 143 602 1,970 Apr. 46 40 17 69 40 35 *406 33 24 42 57 48 2,425 143 603 1,679 May ]48 *6 17 L67 137 30 82 57 31 241 43 32 1,904 143 604 1,157 June 58 \224 17 51 19 31 87 •16 27 48 86 83 2,633 143 605 1,885 July 89 24 18 82 60 29 *280 *221 *22 41 -162 -138 2,599 143 607 1,848 Aug ]L57 46 18 176 146 25 166 34 10 *42 -54 -46 2,873 143 610 2,120 Sept 1 L85 18 24 24 98 13 9 *27 53 51 2,266 143 611 1,511 r Revised for change in classification of commodity stamp transactions of Surplus Marketing Administration. Figures for 1939 and October 1940-June 1941 have not yet been revised because of lack of adequate data. 1 Beginning with July 1,1940, net receipts represent total receipts less net social security employment taxes, which under the 1939 amendments to the Social Security Act are appropriated directly to the Federal old-age and survivors insurance trust fund. To make the figures for earlier periods comparable, transfers to this trust fund, formerly shown under expenditures, have been deducted from total receipts, from total expenditures, and from transfers to trust accounts. 2 Details given in lower section of table. 3 For details, see page 1164 * For social security investments, excess of redemptions; for net expenditures in checking accounts, excess of receipts. NOTE.—For explanation of table see BULLETIN for October, 1940, pp. 1052-1054. 1166 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

GOVERNMENTAL CORPORATIONS AND CREDIT AGENCIES [Based on compilation by U. S. Treasury Department from reports received from organizations concerned. In millions of dollars] 1940 1941 Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Assets Loans and preferred stock: Loans to financial institutions 433 437 441 469 485 445 425 409 400 397 417 408 407 Preferred stock, etc.. 756 757 757 739 736 729 711 706 703 702 698 693 669 Loans to railroads 553 513 512 515 516 523 518 523 523 505 505 497 497 Home and housing mortgage loans ___ 2,336 2,348 2,387 2,387 2,390 2,424 2,395 2,406 2,427 2,436 2,445 2,413 2,413 Farm mortgage loans 2,534 2,526 2,517 2,508 2,500 2, 481 2,485 2,475 2,467 2,458 2,448 2,437 2,426 Other agricultural loans 815 802 785 772 757 728 727 776 867 830 779 754 726 All other loans 1,197 1,200 1,214 1,291 1,298 1,309 1,352 1,386 1,409 1,472 1,511 1,553 1,690 Total loans and preferred stock _ _ . 8,623 8,583 8,613 8,680 8,682 8,639 8,614 8,681 8,796 8,800 8,804 8,756 8,826 Cash. 566 572 521 549 533 580 595 620 771 464 376 771 594 U. S. Govt. direct securities 715 693 704 699 701 723 736 756 771 780 802 824 844 Securities of Government corporations and credit agencies: Fully guaranteed by U. S.__. 131 131 130 128 128 127 127 124 126 125 123 123 123 Other i 36 36 30 24 22 21 22 20 21 17 18 17 18 Accounts and other receivables .. 519 512 521 513 491 552 524 551 555 549 598 707 671 Business property 569 570 597 601 593 599 600 602 608 623 636 653 664 Property held for sale 1,061 1,081 1,094 1,113 1,141 1,190 1,206 1,245 1,297 1,392 1,497 1,567 1,625 Other assets ._ . .. 191 193 188 210 211 214 251 310 338 359 423 435 517 Total assets other than interagency 2 12,410 12, 371 12, 398 12, 518 12, 500 12,645 12,676 12,909 13,282 13,108 13, 277 13, 853 13, 882 Liabilities Bonds, notes, and debentures: Fully guaranteed by U. S..__ 5,811 5,809 5,808 5,919 5,917 5,915 5,914 5,916 6,560 6,371 6,370 6,939 6,937 Other i. 1,354 1,356 1,354 1,422 1,395 1,389 1,386 1,390 1,385 1,434 1,443 1,442 1,445 Other liabilities _ 1,234 1,238 1,243 1,237 1,214 1,294 1,292 1,391 1,432 1,492 1,604 1,761 1,741 Total liabilities other than interagency 2 . _ 8,400 8,403 8,406 8,579 8,526 8,599 8,592 8,696 9,377 9,297 9,417 10,142 10,123 Excess of assets over liabilities, excluding interagency transactions _. 4,010 3,968 3,992 3,939 3,974 4,046 4,084 4,213 3,906 3,811 3,860 3, 711 3,759 U. S. Govt. interests 3,603 3,558 3,580 3,526 3,559 3,629 3,666 3,792 3,484 3,388 3,436 3,286 3, 333 Privately owned interests_. 407 410 412 413 415 417 418 421 422 423 424 425 426 1 Excluding Federal land bank bonds held by Federal Farm Mortgage Corporation. 2 Including, however, investments in securities of agencies (other than mentioned in footnote 1) and deposits of agencies with Reconstruction Finance Corporation. PRINCIPAL ASSETS AND LIABILITIES OF GOVERNMENTAL CORPORATIONS AND CREDIT AGENCIES, AUGUST 31, 1941 [Based on compilation by U. S. Treasury Department from reports received from organizations concerned. In millions of dollars] Assets Liabilities Bonds, notes, and pr T l s e o a t o o f n a e t c n d a r k s r l ed Cash o G d U t b i i o o l . r i e v n g S c s t a . t . - G o t u b t i e a o li e r n g d a s a n - - A r o c e a a c c b t n h o e l d e e i u v s r n - ts p B r u o s p in e e rt s y s P h r e o s l p a d l e e f r o t r y an U G te n u e i d a d te e r - d b b y entur O e t s her States Reconstruction Finance Corporation. 1,613 123 51 23 0) 45 2,102 N Ho at m io e n m al o d rt e g fe a n g s e e a c n o d r p h o o r u a s t i i n o g n s agencies: 2 0) 44 0) 367 Home Owners' Loan Corporation 2,015 159 6 3 308 2,417 0) Federal home loan banks . _ 173 49 53 11 1 76 RFC Mortgage Company 69 0) 0) 2 7 1 Federal National Mortgage Association 198 4 (0 1 85 United States Housing Authority 306 20 6 3 226 Farm credit agencies: Federal Farm Mortgage Corporation _ ... 622 22 53 127 10 1,269 37 Federal land banks 1,804 54 117 175 66 2 975 Federal intermediate credit banks 261 23 36 2 247 P B r a o n d k u s c f t o io r n c o c o r p e e d r it a ti c v o e r s porations . 8 6 3 2 0 1 ) 7 2 4 3 7 8 0) 1 0 0 ) )6 0) 0) Regional agricultural credit corporations 7 15 1 0) C Fa o r m m m C o r d e i d ty it C A r d e m di i t n C is o tr r a p t o i r o a n t ion __ 1 2 7 6 8 1 1 1 7 4 0 1 ) 68 4 786 906 Farm Security Administration 469 30 1 Insurance agencies: Federal Crop Insurance Corporation 8 0) Federal Deposit Insurance Corporation _._ _ 52 19 448 37 0) 27 Federal Savings and Loan Insurance Corporation 1 25 103 3 Federal Housing Administration 16 32 29 1 10 17 2 Export-Import Bank of Washington 144 1 41 0) Tennessee Valley Authority 20 8 403 8 XJ S Maritime Commission 31 20 47 Rural Electrification Administration 303 6 Public Works Administration 82 Other 94 14 6 15 65 1 15 Total 8,826 594 844 123 671 664 1,625 6,937 1, 445 1 Less than $500,000. 2 Excludes Federal land bank bonds in the amount of $761,000,000 held by Federal Farm Mortgage Corporation. NOVEMBER 1941 1167 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECONSTRUCTION FINANCE CORPORATION LOANS AND INVESTMENTS [Amounts outstanding at end of month. In millions of dollars] 1940 1941 Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Loans to financial institutions 142 142 167 172 166 162 158 154 149 145 139 134 131 Loans on preferred stock of banks and insurance companies ._ __ __ 57 57 56 53 50 49 49 49 48 48 48 48 48 Preferred stock, capital notes, and debentures. 460 460 455 452 447 442 437 434 432 429 425 410 407 Loans to railroads (including receivers) _ _ 470 470 473 474 482 482 487 487 470 470 462 461 461 Loans for self-liquidating projects.. _ _ 38 47 36 36 37 35 35 36 37 37 81 81 81 Loans to industrial and commercial businesses: For national defense 3 3 6 7 9 11 17 21 61 65 70 71 82 Other 129 128 126 121 119 117 115 114 113 111 109 108 106 Loan to Great Britain 100 125 Loans to drainage, levee, and irrigation districts 83 83 84 83 83 83 83 76 74 79 79 77 77 Other loans 5 5 5 5 5 5 5 5 5 5 5 5 5 Securities purchased from Public Works Administration 116 116 115 116 114 113 113 113 111 122 120 117 117 Total loans and investments, other than interagency _ _1,503 1,511 1,522 1,519 1,512 1,499 1,499 1,488 1,503 1,511 1,538 1,613 1,640 Preferred stock of, and loans to Export-Import Bank 74 74 99 99 174 174 174 174 174 174 174 174 174 Loans to Rural Electrification Administration 146 146 146 146 152 157 164 168 175 182 190 195 202 Capital stock of, and loans to RFC Mortgage Company 61 63 64 67 68 68 69 71 71 73 75 76 77 Capital stock of, and loans to Federal National Mortgage Association. 81 85 87 90 93 96 99 99 101 102 103 105 107 Loans to Tennessee Valley Authority 8 8 8 8 8 8 8 8 8 8 8 8 8 Capital stock of, and loans to national defense companies1 10 24 33 45 63 83 121 168 219 282 327 380 527 Loans to Farm Security Administration 10 21 23 28 18 33 60 81 97 116 89 96 101 Capital stock of Federal Home Loan Banks. _ 125 125 125 125 125 125 125 125 Total loans and investments _ 1,894 1,932 1,983 2,003 2,089 2,244 2,319 2,383 2,473 2,573 2,630 2,772 2,962 Including Metals Reserve Company, Rubber Reserve Company, Defense Plant Corporation, and Defense Supplies Corporation. FARM CREDIT ADMINISTRATION LOANS AND DISCOUNTS OUTSTANDING, BY INSTITUTIONS [In millions of dollars] Farm mortgage loans Short-term credit Loans to cooperatives Emer- Agricul- End of year or month Total Total F b e l a a d n n e k d ra s l B C L m a o a is n n m - d k - Total i m F c i e e n r d d e te e d ia r r i - a t te l P a c s r t r s o i e o o d d c n u i i a t c - - c d r g r o r o e e p l n u i a e c g f n y h d t Total3 a c B o ti a o f v o n p e r k e s r s - M i r n e t g a v u r o r k A a l e v l c t - t sioner banks 2 tions loans ing fund 1934 2,964 2,533 1,916 617 315 61 111 117 55 1935 3,321 2.867 2,072 795 358 94 173 97 44 1936 3,363 2,901 2,064 837 337 105 165 125 54 1937 3,335 2,848 2,035 813 367 138 173 120 31 1938 3,211 2,785 ,982 753 364 148 171 112 24 1939 3,058 2,596 ,905 364 154 168 99 21 1940—September. 3,035 2,526 ,867 659 420 195 178 89 16 October 3. 008 2,517 ,862 655 394 180 173 96 17 November. 2,986 2,508 ,856 652 383 173 170 96 17 December. 2,973 2,500 ,851 648 381 172 168 93 16 1941—January- 2.964 2,489 ,844 645 382 174 167 92 16 February . 2.970 2, 485 ,842 643 393 182 169 91 16 March 2,976 2,475 ,836 640 413 195 175 88 16 April 2,982 2,467 ,830 637 431 207 179 85 16 May 2,988 2,458 ,824 634 440 215 179 90 16 June 2,988 2,448 ,818 630 450 221 179 90 16 July 2,986 2,437 ,811 626 453 224 179 96 16 August 2.975 2,426 ,804 622 450 221 177 99 16 September. 2,954 2,411 ,795 616 431 208 174 111 16 1 Including loans of regional agricultural credit corporations (not shown in the breakdown) amounting to $87,000,000 in 1934, $43,000,000 in 1935, $25,000,000 in 1936, $16,000,000 in 1937, $11,000,000 in 1938, $8,000,000 in 1939, and from $6,000,000-$8,000,000 since 1939. 2 Exclusive of loans to and discounts for regional agricultural credit, corporations, production credit associations, and banks for cooperatives, amounting to a total of $225,000,000 in September 1941. These loans and discounts are included in the columns for the institutions concerned. 3 Including loans of Federal intermediate credit banks to cooperatives (not shown in the breakdown) amounting to $34,000,000 in 1934, $3,000,000 in 1935, and a negligible amount since 1935. 1168 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL HOME MORTGAGE AND HOUSING AGENCIES POSTAL SAVINGS SYSTEM LOANS AND DISCOUNTS OUTSTANDING, BY INSTITUTIONS [In millions of dollars] [In millions of dollars] Assets E m n o d n t o h f H O p L t C e i o o w o r o o r m s a n r n a ' n - - - e B H L a F e o n o e ra m k d a l n - s e i c s i a a a F l a e v o s t e n r i s i a a o d d n o n l - n - g s s 2 M C R p g a o a F o n g m C r y e t - - c M t A i F g i e N a o s a e o r t a n s g a d i r - o l o a e - t - - l n U t S H h n A t i o o n a i u r u t g t i e - e s t d s y - End of month D a i n b e t a c o p l e r - o s s s 1 - Total b C i p t n a o o a n r s d s y k i h e - s - T U o . t a S l s . e G o c r D g e u b o a i c l r v - i - i t - e ti r e n s G m o t a e u b n e e l a - d i n r - - t f s C e u e r t n a e r c v s d - 2 h e s, tions gations 1933—June _ 47 Dec.-. 132 85 1934—June. _ 1,217 85 1934—June 1,198 1,225 695 453 418 35 76 Dec 2,379 87 81 December 1,207 1,237 540 597 467 130 100 1935—June.- 2,658 79 186 1935—June 1.205 1,236 385 777 630 147 74 Dec 2,897 103 348 6 December 1J201 1,237 287 853 706 147 98 1936—June „ 2,945 119 475 18 1936—June 1,232 1,265 203 967 800 167 95 Dec 2,765 145 587 36 December 1,260 1,296 145 1,058 891 167 93 1937—June.__ 2,556 167 742 49 1937—June 1,268 1,307 136 1,100 933 167 71 Dec 2,398 200 854 68 10 December 1,270 1,308 130 1,097 930 167 80 1938—June.. . 2,265 196 948 41 38 13 1938—June 1,252 1,290 115 1,103 936 167 73 Dec 2,169 199 1,034 54 80 32 December 1,252 1,291 86 1,132 965 167 73 1939—June.. 2,081 169 1,136 57 125 68 1939—June 1,262 1,304 68 1,157 1,011 146 78 Dec 2,038 181 1,271 57 147 123 December 1,279 1,319 53 1,192 1,046 146 74 1940—June__ _ 2,013 157 1. 405 60 163 87 1940—June 1,293 1,337 43 1,224 1,078 146 69 1940— Sept.— 1,988 176 L,488 61 171 129 1940—September 1,295 1,339 40 1,224 1,078 146 74 Oct. .. 1,981 182 1,515 63 175 168 October 1,296 1,338 38 1,224 1,078 146 75 Nov 1,969 186 L, 533 65 178 176 November 1,298 1,341 37 1,224 1,078 146 80 Dec 1,956 201 1,546 67 181 186 December 1,304 1,348 36 1,224 1,078 146 88 1941—Jan 1,942 171 1,564 68 185 228 1941—January 1,314 1, 356 34 1, 239 1,093 146 84 Feb.___ 1,929 157 L, 579 68 187 211 February 1,318 1,361 33 1,245 1,098 146 83 Mar..._ 1,914 146 L,600 69 190 233 March 1,320 1,364 31 1,259 1,113 146 74 Apr 1,900 142 1,628 70 190 266 April 1,317 1,362 30 1, 259 1,113 146 73 May - 1,885 145 L,658 70 192 288 May 1,310 1,359 30 1,254 1,108 146 75 June — 1,870 170 fi88 65 194 316 June 1,304 1,356 30 1,251 1,104 146 75 July.... 1,855 168 1,718 67 196 296 July 1,307 1,359 29 1,251 1,104 146 80 Aug 1,841 173 1,751 69 198 306 August PI, 309 Sept.— 1,825 178 70 200 332 September ?1, 311 1 Loans and discounts to member institutions of the Federal Home p Preliminary, Loan Bank System. i Outstanding principal, represented by certificates of deposit. Does 2 Federal Home Loan Bank Board estimates for all Federal savingsnot include accrued interest nor outstanding savings stamps. &nd loan associations which are private institutions chartered and 2 Includes working cash with postmasters, 5-per cent reserve fund and supervised by the Federal Home Loan Bank Board. miscellaneous working funds with the Treasurer of the United States, 3 Not available. accrued interest on bond investments, and accounts due from late postmasters. Back figures.—See BULLETIN for August 1935, pp. 501-502. LOANS INSURED BY FEDERAL HOUSING ADMINISTRATIONl INSURED FHA HOME MORTGAGES (TITLE II) HELD IN [In millions of dollars] PORTFOLIO BY CLASSES OF INSTITUTIONS1 [In millions of dollars] Y m ea o r n t o h r Total p P ( m e r T i r o m r I e o i ) t v t n - y p l e t e - - s ( h s N c t T t m o i r o I e o u m i n ) a w t n c - l l e e l - H ( m g T a I o o D i g m t r e l t e e s - g h r a g M ( o e g a T r I u n D o n e o i s s d t t u r i a l t n p e o l - g n ( h f T V D e i o n n i u I e g t ) s - s l e e - E m n o d n t o h f Total b C m a c o i e n m a r k - l - s b M s t i a n u a n v u g a k - - s l s a a S l i a t s o n i a s n o a g o v d n n s - c s i- I p c a n a o n s m n c u i e - e r- s a c F e g ie e r e s a d n l - 2 - Other3 1 1 9 9 3 3 4 5 32 3 0 0 22 3 4 0 94 2 1 19 9 3 3 7 6 — — D D e e c c 3 7 6 7 5 1 2 4 2 3 8 1 2 8 7 11 5 0 6 11 4 8 1 32 5 2 5 7 3 1936 557 246 309 2 1938—Mar 856 472 26 119 146 42 51 1937 495 60 424 11 June__. _ 933 509 28 127 165 44 60 1 1 1 9 9 9 3 4 3 9 0 8 1,0 6 9 2 9 5 6 4 4 2 1 2 0 6 5 8 0 1 2 2 1 5 6 3 4 6 7 6 7 3 9 3 6 4 1 5 8 3 1 1939— J S D M u e e n p a c e t r _ - _ 1 1 1 1 , , , , 1 4 0 3 9 7 4 4 9 8 9 9 6 6 7 5 5 3 9 6 9 4 9 5 3 3 4 5 2 8 4 0 1 1 1 1 3 4 5 6 7 9 9 7 2 2 2 1 1 4 7 8 2 1 1 7 1 13 1 5 7 7 4 6 7 8 9 9 7 9 2 4 2 1940— Sept... 107 33 3 68 2 Sept 1,622 824 57 178 302 148 113 Oct 112 29 2 80 1 Dec 1,793 903 71 192 341 153 133 Nov.— 99 28 69 1940—Mar 1,949 971 90 201 393 171 123 104 24 2 78 June _ _ . 2,075 1,026 100 208 432 182 127 Sept 2,232 1,093 112 216 480 190 141 1941— M A F Ja e p a n b r r . . . — ._ 1 8 0 8 7 4 2 4 5 2 2 1 1 0 0 2 7 2 2 1 1 7 6 6 6 9 1 2 0 3 2 * 1 1941— J D S M u e e n p a c e r t 2 2 2 1, , , , 5 9 7 4 9 4 5 0 8 2 5 9 1 1 1 1 , , , , 2 3 1 3 4 1 6 8 7 8 2 1 1 1 1 1 9 5 3 4 0 7 0 6 2 2 2 2 3 4 3 2 7 6 0 4 6 6 5 7 6 0 2 4 8 6 2 2 2 2 2 2 1 2 0 2 0 1 1 5 1 1 1 1 5 5 5 7 0 9 4 8 May— 89 22 1 65 1 June..- 105 27 3 75 1 Gross amount of mortgages held, does not include terminated mort- July — 105 20 3 82 gages and cases in transit to or being audited at the Federal Housing Aug.___ 91 18 2 70 1 Administration. Sept.— 107 31 2 73 1 2 The RFC Mortgage Company, the Federal National Mortgage Association, and the United States Housing Corporation. i Figures represent gross insurance written during the period and do 3 Including mortgage companies, finance companies industrial banks, not take account of principal repayments on previously insured loans.endowed institutions, private and State benefit funds, etc. * Less than $500,000. NOVEMBER 1941 1169 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BUSINESS INDEXES [The terms "adjusted ' and ''unadjusted" refer to adjustment of monthly figures for i5easonal variation | Construction Income ( [ p n h d y u s s 1 i t 9 c r 3 i a a 5 l l - 3 v p 9 o r = l o u 1 d m 0 u 0 e c ) t i 2 o n * awa 1 r 9 c d 2 o e 3 n d - t 2 r ( 5 a v = c a t 1 s l 0 u 0 e) 3 Employment * F to a r c y - Freight- D m ep e a n r t t- W s h al o e le- C o o f st Y m ea o r n t a h nd ( 1 m v 9 = p a 3 e 1 a l 5 n u y 0 - - 0 e t 3 s ) 9 1 Total Du f M a r c - a tu n N r u e o - s n- M er i a n l - s Total R d t e e ia n s l i - - o A th ll er 1 t N 9 a u c 3 g o u r 5 r a n l - i - l - - 3 5 9 19 F 23 a - c 2 t 5 o = r 1 y 00 r 1 o 9 p = l 2 a l 1 3 s y 0 - - 2 * 0 5 1 i l 9 = n o 3 a g 1 5 0 d s - * 0 3 - 9 (v 1 a 9 s = a 2 l u l 1 3 e 0 e - s 2 0 ) 5 *6 p m r c = 1 o i o 9 c 1 m d 2 e 0 6 i s - 0 t * y 19 i - l n 1 3 i g v 8 0 - - 0 4 39 able dur- = 100 able ju A s d te - d ju A s d te - d j U us n t a e d d - ju A s d te - dju A s d te - dju A s d te - dju A s d te - d Ju A s d te - dju A s d te - d ju A st d e - d ju A s d te - d j U us n t a e d d - j U u n st a e d d - ju A s d te - d ju A s d te - d j U u n s a te d d - j U u n st a e d d - 1919 72 84 62 71 63 44 79 106.7 98.0 120 78 138 6 124 8 1920 75 93 60 83 63 30 90 107.1 117.2 129 94 •I K A A 143 9 1921 58 63 67 66 66 44 65 82.0 75.6 110 87 97 6 127 7 1922 73 81 67 71 79 68 88 90.7 81.2 121 88 Qfi 7 11Q >f 1923 88 103 72 98 84 81 86 103.8 102.9 142 98 100 6 191 Q 1924 82 95 69 89 94 95 94 96.4 96.0 139 99 98 1 122 2 1925 90 107 76 92 122 124 120 99.8 101.1 146 103 ifjQ e ini A 1926 96 114 79 100 129 121 135 101.7 104.2 152 106 100 0 19fi 4 1927 95 107 83 100 129 117 139 99.5 102.4 147 107 QK A 194 n 1928 99 117 85 99 135 126 142 99.7 103.5 148 108 Qfi 7 199 A 1929 122.3 110 132 93 107 117 87 142 107.6 106.0 110.4 152 111 95.3 122.8 1930 110.9 91 98 84 93 92 80 125 100.9 92.4 89.4 131 102 86 4 119 4 1931 94.3 75 67 79 80 63 37 84 92.3 78.1 67.8 105 92 73.0 108.7 1932 73.2 68 41 70 '67 28 13 40 82.8 66.3 46.7 78 69 64.8 97.6 1933 69.5 69 54 79 76 25 11 37 83.3 73.4 60.1 82 67 65 9 92 4 1934 80 2 75 65 81 80 32 12 48 90.5 85.7 64.6 89 75 74 Q QK 7 1935 87.2 87 83 90 86 37 21 60 94.2 91.3 74.1 92 79 80.0 98.1 1936 101.2 103 108 100 99 65 37 70 100.0 99.0 86.8 107 88 80 8 99 1 1937 107.2 113 122 106 112 69 41 74 105.0 108.6 102.5 111 92 86.3 102.7 1938 98.9 89 78 95 97 64 45 80 98.5 90.9 78.5 89 85 78 6 100 8 1939 105.5 108 109 108 106 72 60 81 102.3 99.9 92.2 101 90 77 1 99 4 1940 112.5 123 138 113 117 81 72 89 105.6 107.5 105.4 109 94 78.6 100.2 1938 July _ _ 97.2 86 84 71 95 94 69 49 68 97.0 87.2 85.9 71.7 88 83 78 8 August 98.1 90 91 78 99 97 66 63 77 97.6 89.3 90 2 77.9 90 83 78 1 September 99.1 93 97 83 100 '97 78 66 96 98.2 91.0 93.6 82.3 92 85 78 3 100 7 October 100.2 96 100 89 100 '99 82 67 102 98.7 92.0 94.2 85.0 95 86 77 6 November 100.7 100 102 96 103 102 96 86 128 99.6 94.8 95.3 85.3 95 87 77 5 December 101.4 101 99 97 104 102 96 87 128 100.3 96.7 96.2 88.1 96 88 77 0 100 2 1939 January 101.3 101 97 97 104 103 86 65 111 100.5 96.8 94.5 84.7 98 88 76 9 February 101.9 101 99 97 104 101 73 58 85 100.7 96.8 96.1 87.1 95 88 76 9 March 103.0 101 100 96 104^ 104 69 55 80 100.8 96.7 97.0 88.8 94 88 76 7 99 1 April 101.8 '97 98 93 103 '91 67 58 74 99.8 96.6 96.9 86.8 87 88 76 2 May 103.6 98 99 93 104 '97 63 55 68 100.6 96.3 95.9 86.3 90 87 76 2 June 104.8 103 102 99 106 104 63 68 67 101.7 97.3 96.4 87.9 97 86 75 6 98 6 July 104.6 105 102 102 106 107 67 62 71 102.0 98.4 96.6 85.8 99 87 75 4 August 106.5 106 106 108 108 92 73 67 78 102.4 99.0 99.5 91.2 101 88 75 0 September 107.8 114 119 118 111 114 73 68 76 103.0 100.8 103.7 95.4 111 90 79 1 100 6 October 109.1 121 126 129 115 119 76 68 82 104.2 104.8 107.3 103.2 114 92 79 4 November 109.9 124 126 134 117 120 83 61 101 104.9 107.0 107.5 103.2 114 93 79 2 December 111.2 125 122 138 117 114 86 60 107 105.4 108.2 107.8 105.4 110 95 79.2 09.6 1940 January 110. 6 122 117 134 113 118 75 53 93 104.9 107.6 105.0 99.8 111 92 79 4 February , 110.1 116 113 124 110 114 63 56 68 104.2 105.8 105.0 99.3 105 90 78 7 March 108.8 113 112 118 107 117 62 57 66 104.0 104.0 104.4 99.8 100 89 78 4 99 8 April 109.1 112 112 116 107 119 64 62 66 103.3 102.8 103.2 97.9 103 89 78 6 May 110.1 116 117 123 110 117 64 64 65 103.8 102.8 102.5 97.8 106 89 78 4 June 110.2 122 121 133 114 119 74 69 77 104.2 103.9 103.1 99.5 111 91 77 5 100 8 July 111.7 122 120 136 113 119 85 77 91 104.7 105.1 103.2 98.2 110 92 77 7 August 113.3 124 124 143 112 114 90 82 98 105.6 107.4 107.4 105.5 112 98 77 4 September _ 114.6 127 132 151 112 116 93 82 101 106.1 108.9 111.4 111.6 112 97 78.0 100.4 October 115.8 130 135 155 116 113 95 85 103 107.3 111.4 113.8 116.2 110 94 78 7 100 2 November 116.6 134 136 157 120 118 111 87 130 108.8 114.2 114.7 116.4 116 100 79.6 100.1 December 119.0 139 136 164 124 118 115 90 136 110.6 116.6 116.2 122.4 119 101 80.0 100.7 1941 January 121.3 140 135 171 123 119 103 84 117 111.0 118.3 115.5 120.7 122 101 80.8 100 8 February 123.0 144 139 176 126 118 99 76 118 111.6 118.6 117.8 126.8 124 103 80.6 100.8 March 123.7 147 144 180 127 125 94 74 109 111.4 119.4 119.9 131.2 126 103 81.5 101 2 April. 124.5 144 144 180 131 '95 103 80 121 111.5 122.0 122.6 134.7 112 104 83.2 102.2 May . 128.4 154 155 190 135 126 101 88 111 112.9 124.9 124.9 144.1 135 105 84.9 102.9 June 131.0 159 160 195 139 '132 117 101 129 114.2 128.7 127.8 152.1 139 104 87 1 104 6 July 133. 3 160 159 199 138 131 139 115 158 116.0 133.3 130. 5 152. 6 138 115 88.8 105. 3 August 134.8 160 162 199 139 131 152 112 184 116.4 133.0 132.8 157.8 139 134 90.3 106. 2 September P136. 9 P138 P130 P101 P207 P116.2 P132. 5P135. 6 P163. 0 130 116 91.8 108.1 Octobere «163 el67 el29 el27 105 ^92. 0 p Preliminary. * Average per working day. r Revised. e Estimated. 1 Department of Commerce series on value of payments to individuals. 2 For indexes by groups or industries, see pp. 1171-1174; for description, see BULLETIN for September 1941, pp. 878-881, and for August 1940, pp. 753-771. 3 Based on F. W. Dodge Corporation data; for description, see p. 358 of BULLETIN for July 1931; by groups, see p. 1179. 4 The unadjusted indexes of employment and payrolls, wholesale commodity prices, and cost of living are compiled by or based on data of the Bureau of Labor Statistics. For description of seasonally adjusted index of factory employment compiled by the Federal Reserve Board of Governors, see BULLETIN for October 1938, pp. 835-837, and for October 1939, p. 878. For indexes by groups or industries see pp. 1175-1178 for employment and payrolls and p. 1182 for prices. 5 Excludes military and naval forces. 6 For sales comparisons by cities and by departments see p. 1181 of this BULLETIN. Back figures in BULLETIN.—For industrial production, August 1940, pp. 825-882 and Sept. 1941, pp. 933-937; for factory employment and payrolls, October 1938, pp. 838-866, October 1939, pp. 879-887, and February 1941, p. 166; for department store sales, October 1938, p. 918, and January 1941, p. 65; for freight-car loadings, June 1941 pp. 529-533. 1170 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDUSTRIAL PRODUCTION, BY INDUSTRIES (Adjusted for Seasoned Variation) [Index numbers of the Board of Governors. ] 935-39 average= 100] • 1940 1941 Industry Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Industrial Production—Totall.. 124 127 130 134 139 140 144 147 144 154 159 160 160 P162 Manufactures—Total* 126 129 134 137 142 144 148 151 153 159 164 165 165 P167 Durable1 143 151 155 157 164 171 176 180 180 190 195 199 199 P204 Nondurable 112 112 116 120 124 123 126 127 131 135 139 138 139 P138 Iron and Steel 163 169 172 171 174 179 179 184 181 184 184 185 185 192 Pig iron 162 167 169 173 173 177 176 178 170 175 179 181 182 185 Steel _ .. 166 175 178 177 181 186 187 193 193 196 196 197 198 207 Open hearth and Bessemer ___ 159 164 167 164 166 172 171 177 172 174 173 174 172 179 Electric 219 247 259 263 283 291 300 305 340 355 359 365 382 405 Machinery. 138 145 149 152 164 168 177 185 194 206 214 216 223 P228 Transportation Equipment2.. U9 159 165 171 177 190 203 207 197 228 243 257 240 P252 Aircraft 460 508 552 600 635 685 741 768 818 872 926 1,003 1,123 PI, 212 Automobile bodies, parts, and assembly .. 121 121 125 125 125 134 143 142 124 152 161 171 139 P132 Automobile factory sales 71 110 130 134 129 144 152 143 122 151 148 154 93 74 Railroad cars 127 148 148 166 172 178 182 178 196 218 235 ••233 236 P256 Locomotives _ 123 140 160 168 186 204 222 234 266 280 308 342 355 ?>370 Shipbuilding (private yards) 213 220 227 226 263 282 307 335 352 380 425 '467 484 P557 Nonferrous Metals and Products 137 143 149 155 162 167 173 179 183 189 184 '188 186 P187 Nonferrous metal smelting^ _ _ 132 132 133 135 137 137 142 142 147 148 144 142 145 P145 Copper smelting 133 129 130 135 135 133 140 136 145 144 136 131 135 P135 Zinc smelting 140 148 147 147 152 153 .158 163 164 170 170 173 175 175 Copper deliveries 134 154 170 179 190 201 209 219 221 231 222 234 221 P225 Lead shipments 128 126 132 145 158 161 165 172 186 205 210 '200 196 Zinc shipments . 139 141 142 144 146 149 148 146 147 144 144 142 143 146 Tin consumption 117 113 109 112 115 119 130 143 147 147 141 155 161 Lumber and Products.. .. 114 121 123 127 132 137 135 128 132 132 135 W 140 P137 Lumber _ 113 121 124 128 133 139 139 125 128 122 125 131 134 P128 Furniture _ 115 121 122 125 128 132 129 132 139 151 155 161 153 P154 Stone, Clay and Glass Products 119 124 126 130 140 154 158 150 142 141 150 151 154 P156 Cement__ 115 125 133 140 155 181 183 156 139 134 138 143 148 154 Common and face brick 129 131 126 135 147 Common brink" 130 124 126 136 147 Face brick 125 146 127 132 148 Glass containers. 114 116 115 114 119 123 131 139 135 148 155 154 158 163 Polished plate glass 114 118 111 113 117 137 138 135 142 142 152 146 133 120 Textiles and Products 113 rll5 123 135 140 138 143 146 150 157 156 155 154 P152 Textile fabrics. 111 113 121 132 135 133 140 143 146 152 151 151 149 P146 Cotton consumption 124 rll9 126 139 142 144 152 156 160 164 160 162 160 156 Rayon deliveries 127 120 129 146 156 156 148 150 158 169 173 173 170 P168 Silk deliveries 61 65 71 77 74 69 67 71 74 71 73 r77 56 P34 Wool textiles 106 123 132 140 145 136 149 152 152 165 1G3 157 166 P173 Carpet wool consumption 95 109 125 128 131 119 143 146 139 148 149 126 148 P157 Apparel wool consumption 108 137 152 160 163 149 165 179 171 196 190 177 181 P215 Woolen yarn 104 120 124 131 132 125 134 135 140 153 151 153 162 P163 Worsted yarn 117 135 149 152 157 150 163 163 166 178 178 174 179 P182 Woolen and worsted cloth. 105 122 127 140 149 142 153 154 156 167 165 160 166 P171 Leather and Products 97 95 97 107 109 107 108 114 114 123 130 '129 121 P119 Leather tanning 92 90 93 100 102 102 103 113 109 118 121 124 123 Cattle hide leathers 98 95 100 110 113 115 112 119 118 129 131 136 140 Calf and kip leathers 83 82 85 92 86 88 92 112 97 99 98 '93 103 Goat and kid leathers 83 83 81 82 86 79 87 97 96 105 113 »116 96 Shoes . 101 99 100 112 113 110 112 115 117 126 136 rl32 119 P116 Manufactured Food Products 114 110 118 117 121 117 120 121 123 124 127 126 133 P134 Wheat flour _ 99 100 104 99 104 98 105 105 110 110 107 103 98 99 Cane sugar meltings 90 86 116 136 122 124 107 122 123 119 129 102 129 Manufactured dairy products 110 '116 122 117 125 131 127 125 135 134 130 133 136 P140 Ice cream 104 114 128 122 131 138 132 129 144 Butter 105 rlO7 108 106 110 119 118 118 119 117 111 113 109 109 Cheese. 115 "121 114 117 118 123 124 131 138 134 121 128 134 145 Canned and dried milk 132 133 135 126 138 136 129 124 135 139 132 141 165 183 Meat packing 119 121 127 133 134 114 126 134 126 132 124 125 134 126 Pork and lard 141 147 152 159 165 121 145 159 143 147 134 132 149 139 Beef 99 95 101 106 107 110 109 110 110 120 120 123 124 118 Veal 91 92 98 102 97 86 94 91 96 97 91 96 94 101 Lamb and mutton. 96 95 106 110 109 112 112 111 108 109 101 110 105 99 Other manufactured foods . _ 115 109 118 116 120 117 119 120 122 122 129 128 135 P137 Alcoholic Beverages 92 no4 103 96 101 105 108 104 107 114 m 130 128 131 Malt liquor . 91 100 94 104 105 106 100 102 106 107 115 110 118 Whiskey 44 71 80 77 85 78 81 80 82 90 94 108 93 94 Other distilled spirits 215 ••232 118 86 85 112 132 132 140 129 154 206 206 262 Rectified spirits ._ 87 126 134 131 105 126 131 130 137 170 206 190 219 170 Tobacco Products 106 108 115 113 114 113 116 117 120 119 118 114 118 121 Cigars 105 102 105 103 108 111 110 109 117 109 106 106 109 104 Cigarettes 110 113 120 119 121 118 125 127 127 131 131 123 129 137 Manufactured tobacco and snuflL _ 96 100 112 106 101 101 96 97 101 100 97 97 96 99 r Revised. P Preliminary. 1 Includes manufacturing in Government arsenals and quartermaster depots not available for publication separately. 2 Includes shipbuilding in Government yards not available for publication separately. 3 Includes also lead production shown under "Minerals." NOVEMBER 1941 1171 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Industrial Production, by Industries (Adjusted for Seasoned Variation)—Continued [Index numbers of the Board of Governors.1935-39 average= 100] 1940 1941 Industry Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Paper and Paper Products1 124 120 122 125 180 129 128 132 134 142 145 147 147 Paper and pulp 123 118 121 124 131 129 128 133 136 145 149 152 152 Pulp 150 150 148 150 159 153 153 160 161 162 175 167 172 Groundwood pulp 119 117 118 123 119 119 122 119 121 120 121 122 128 Soda pulp 120 114 124 113 142 128 129 137 135 141 151 149 151 Sulphate pulp 179 185 184 186 200 190 193 199 199 203 216 203 215 Sulphite pulp 148 145 140 143 148 144 144 153 156 155 170 163 164 Paper 118 113 117 120 127 126 124 129 132 142 145 150 148 Paperboard __ 121 118 123 132 143 138 134 138 143 158 154 170 161 158 Fine paper 114 107 110 114 114 110 110 114 115 127 134 140 147 Newsprint production 113 111 112 109 109 113 115 115 114 114 114 112 113 Printing paper 117 111 114 114 117 119 123 126 131 138 149 149 149 Tissue and absorbent paper 121 125 124 120 131 132 125 133 132 137 144 142 140 Wrapping paper 117 107 110 114 120 120 119 124 129 139 140 138 139 Printing and Publishing 2 110 108 109 110 112 111 114 116 118 122 128 129 P127 Newsprint consumption 104 104 104 106 107 103 105 106 106 107 106 106 109 105 Petroleum and Coal Products 118 116 116 118 120 122 122 128 121 125 127 128 130 Petroleum refining 109 112 112 114 116 117 117 122 123 124 126 Gasoline 109 113 111 112 115 117 118 120 120 124 123 123 126 Fuel oil 116 113 115 116 120 120 122 121 120 119 122 124 127 Lubricating oil 98 102 109 115 107 112 104 105 118 118 134 133 132 Kerosene _ 111 121 123 123 130 120 123 113 117 115 104 108 116 Coke- 140 143 145 147 149 150 152 154 133 148 154 154 154 Byproduct coke- 137 139 141 143 143 143 145 145 134 141 145 146 146 Beehive coke __ __ __ 263 267 266 281 378 367 398 434 69 386 435 429 453 P426 Chemicals 115 114 116 118 121 122 123 123 132 135 143 145 Rubber products 115 124 126 182 144 141 158 155 158 162 192 153 130 131 Rubber consumption 116 125 128 133 147 143 156 158 161 164 196 156 132 134 Tires and tubes 105 109 109 116 117 123 128 134 131 144 152 126 117 108 Pneumatic tires 106 110 110 118 118 124 128 135 132 144 151 127 118 108 Inner tubes 102 107 103 107 115 121 127 132 130 145 155 125 110 103 Minerals—Total r114 113 118 r118 r119 118 125 r95 '126 '132 r131 131 P130 Fuels 112 115 109 118 113 114 113 121 86 121 129 127 129 Bituminous coal 121 119 98 112 115 117 114 149 22 149 153 146 147 P135 Anthracite 115 108 94 97 108 98 102 102 71 80 126 137 162 P127 Crude petroleum 108 114 115 115 113 114 113 112 113 114 120 119 119 P125 Metals n27 148 r148 148 r15l 144 P143 Iron ore shipments 159 155 163 192 186 187 189 191 200 197 200 207 203 203 Copper 139 137 141 143 145 148 153 148 152 159 155 156 155 154 Lead 114 112 117 113 116 116 116 118 119 115 117 114 116 Z G i o n l c d 3 3 1 1 1 0 7 8 1 1 2 0 0 8 1 1 2 1 0 8 1 13 2 1 0 1 12 2 9 3 1 13 2 1 5 1 1 2 2 5 6 1 12 2 6 5 1 12 3 0 3 1 13 2 1 7 1 1 2 3 5 6 1 1 2 2 5 0 131 P137 Silver 3 106 103 120 127 129 12S 126 129 122 128 124 r Revised. PPreliminary. 1 Includes also paperboard container production held constant, on a seasonally adjusted basis, at 128 since July 1940 when figures were last reported. 2 Includes also printing paper production shown under "Paper." 3 Revised series. Back figures may be obtained from Division of Research and Statistics. NOTE.—For description and back figures see BULLETIN for September 1941, pages 878-881 and 933-937, and August 1940, pages 753-771 and 825-882. 1172 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDUSTRIAL PRODUCTION, BY INDUSTRIES (Without Seasonal Adjustment) llndex numbers of the Board of Governors. 1935-39 average = 100] 1940 1941 Industry Aug. Sept. Oct. Nov. Dec. Jan. Feb Mar. Apr. May June July Aug. Sept. Industrial Production—Totall- 124 132 '135 136 136 135 144 144 155 160 159 162 P!68 Manufactures—Total* 125 133 138 139 140 139 144 149 153 160 165 164 167 P173 Durable 1 139 150 159 161 164 166 171 178 183 193 198 197 198 Nondurable 114 119 121 131 118 136 139 134 138 138 143 P146 Iron and Steel 158 166 171 172 174 179 179 184 181 184 184 185 185 Pig iron 161 164 169 173 173 177 176 178 170 175 179 181 182 185 Steel 161 171 176 178 181 186 187 193 193 196 196 197 198 207 Open hearth and Bessemer ... 154 161 165 166 166 172 171 177 172 174 173 174 172 179 Electric 212 242 257 265 283 291 300 305 340 355 359 365 382 405 Machinery 135 149 152 164 177 185 194 214 216 P228 Transportation Equipment2 154. 179 185 188 207 214 W 221 Aircraft 460 508 552 600 635 685 741 818 872 1,003 1,123 P1,212 Automobile bodies, parts, and assembly 91 119 142 143 138 138 148 150 136 152 161 136 118 Automobile factory sales 23 89 142 161 152 151 161 160 139 164 164 134 47 Railroad cars 130 135 141 153 172 178 182 178 196 218 235 '233 236 Locomotives 124 137 152 163 186 204 222 234 266 280 308 342 355 Shipbuilding (private yards) 202 213 229 219 263 282 307 335 352 380 425 '467 484 Nonferrous Metals and Products 133 143 152 158 166 173 179 184 190 185 188 P186 Nonferrous metal smelting3 127 131 138 137 138 137 142 142 147 148 144 141 145 PU5 Copper smelting 127 129 138 139 135 133 140 136 145 144 136 131 135 Zinc smelting 133 143 147 147 152 153 158 163 164 170 170 173 175 175 Copper deliveries 133 156 173 181 188 200 209 219 221 231 222 234 221 P225 Lead shipments 122 127 138 155 165 166 165 172 186 205 210 '200 196 Zinc shipments 128 138 143 147 147 149 148 146 147 144 144 142 143 146 Tin consumption 115 108 108 112 112 114 130 146 151 153 148 154 159 Lumber and Products 123 126 121 116 119 123 130 134 140 144 152 Lumber 126 134 132 123 114 113 115 118 128 130 135 142 148 Furniture 118 127 133 130 133 123 129 133 135 142 150 149 158 P162 Stone, Clay and Glass Products 133 139 142 136 125 110 112 125 142 164 172 166 172 4 Cement 141 150 154 145 124 100 102 117 139 163 174 177 181 184 Common and face brick 150 161 154 147 125 Common brick 153 162 160 149 120 Face brick 142 161 140 141 133 Glass containers 124 118 119 115 111 110 120 130 135 159 163 160 172 166 Polished plate glass 93 118 127 129 141 144 131 141 142 142 149 109 120 Textiles and Products 111 118 126 137 140 138 143 147 150 157 155 155 154 P152 Textile fabrics 108 115 124 134 136 133 140 143 146 152 150 150 148 P146 Cotton consumption 114 '119 129 139 142 144 152 156 160 164 160 162 160 156 Rayon deliveries 137 138 144 151 154 154 148 150 158 169 173 173 170 Silk deliveries 57 65 77 87 79 72 68 74 73 66 66 '69 50 Wool textiles 109 120 129 139 145 136 149 152 152 165 163 157 166 P173 Carpet wool consumption_ 101 111 124 126 131 119 143 146 139 148 149 126 148 *>157 Apparel wool consumption 113 137 145 162 163 149 165 179 171 196 190 177 181 P215 Woolen yarn 108 119 121 129 132 125 134 135 140 153 151 153 162 ^163 Worsted yarn 120 130 149 152 157 150 163 163 166 178 178 174 179 P182 Woolen and worsted cloth. 107 116 122 139 149 142 153 154 156 167 165 160 166 Leather and Products 104 102 104 117 122 118 120 119 '125 128 Leather tanning 89 89 93 101 104 103 112 112 110 115 118 '120 119 Cattle hide leathers 93 94 101 114 115 116 125 121 118 126 125 '127 133 Calf and kip leathers 87 81 82 87 87 97 105 96 94 100 '102 108 Goat and kid leathers 81 84 80 79 79 91 96 99 103 113 '115 94 Shoes 114 111 102 106 121 128 123 124 119 '128 135 Manufactured Food Products 131 116 115 104 104 107 112 120 129 138 153 P163 Wheat flour 100 115 113 103 100 99 104 102 103 100 101 102 99 114 Cane sugar meltings 95 102 113 112 103 105 135 135 117 132 117 136 Manufactured dairy products 145 '118 96 80 84 92 105 134 182 199 193 183 P143 Ice cream 169 124 92 73 69 78 99 138 Butter 116 106 95 84 87 95 101 105 118 151 155 137 120 108 Cheese 130 125 107 89 82 89 96 107 133 177 186 165 151 150 Canned and dried milk 136 123 108 88 95 103 110 121 152 200 195 172 169 168 Meat packing 102 112 127 151 159 133 122 122 119 132 121 119 116 119 Pork and lard 106 117 143 191 212 157 145 143 135 147 130 119 112 111 Beef 100 107 110 111 107 110 98 100 102 120 118 125 126 132 Veal 92 101 108 104 92 83 83 86 95 101 92 95 95 111 Lamb and mutton 95 107 113 107 104 118 112 107 105 111 96 104 104 111 Other manufactured foods 136 140 132 117 115 103 103 105 107 111 122 137 159 176 Alcoholic Beverages 90 '109 108 104 87 94 100 108 120 129 131 137 Malt liquor 106 '95 82 77 84 90 111 124 137 142 128 120 Whiskey 24 '57 76 96 104 106 91 90 75 59 51 75 Other distilled spirits 103 '318 314 181 105 73 79 84 77 91 97 359 Rectified spirits 68 134 174 207 140 92 113 124 122 149 165 160 180 Tobacco Products 110 118 115 108 108 110 113 121 128 123 132 Cigars 108 117 127 123 90 96 100 111 108 113 111 113 120 Cigarettes 116 121 118 114 108 119 118 119 118 133 144 138 136 146 Manufactured tobacco and snuff. 97 108 115 105 95 100 100 107 ' Revised. * Preliminary. 1 Includes manufacturing in Government arsenals and quartermaster depots not available for publication separately. 2 Includes shipbuilding in Government yards not available for publication separately. 3 Includes also lead production shown under "Minerals." NOVEMBER 1941 1173 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Industrial Production, by Industries (Without Seasonal Adjustment)—Continued [Index numbers of the Board of Governors. 1935-39 average = 100] 1940 1941 Industry Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept Paper and Paper Products1 124 127 m 126 131 137 W 4 146 Paper and pulp 121 120 124 124 128 133 137 140 145 147 150 Pulp 148 147 150 124 154 154 159 164 165 165 173 '145 170 Groundwood pulp 101 102 110 151 124 124 127 128 136 133 124 160 109 Soda pulp 120 115 124 126 138 128 133 141 139 141 150 109 151 Sulphate pulp 179 185 188 113 190 192 199 203 199 203 214 141 215 Sulphite pulp 148 145 143 186 144 144 148 156 159 155 167 199 164 Paper 117 116 120 144 120 124 129 133 136 142 143 155 147 Paperboard 123 125 130 120 127 132 138 144 146 155 154 142 163 167 Fine paper 107 102 110 132 112 111 118 122 126 130 131 161 138 Newsprint production 110 111 112 110 110 113 113 115 114 115 115 127 110 Printing paper 113 110 115 112 116 119 126 132 136 140 146 109 145 Tissue and absorbent paper 121 131 129 113 126 128 130 134 135 136 143 '140 140 Wrapping paper 116 108 113 119 116 120 124 126 130 136 137 '135 138 114 133 Printing and Publishing 2 102 108 113 112 112 109 115 12k 127 me 120 Newsprint consumption _ 91 105 111 111 109 104 110 113 107 96 106 m Petroleum and Coal Products. 118 118 119 119 120 119 rl20 131 Petroleum refining no 114 114 115 115 115 115 114 119 122 124 125 128 Gasoline 112 116 114 113 112 113 114 114 118 124 126 127 130 Fuel oil 114 114 116 117 122 123 '123 "118 "117 "119 "121 122 124 Coke L K B B u e y e e b r p o h r r s i i o c v e d a e n u t e i c c n o t g k c e o o i k l e 1 1 1 2 9 3 0 3 1 7 9 7 7 0 1 1 2 1 1 1 0 3 2 4 9 2 9 2 2 1 1 2 1 1 0 2 4 7 4 9 3 1 4 5 1 1 3 1 1 1 2 0 4 4 5 6 9 3 8 1 1 1 3 1 3 0 4 7 4 1 6 9 8 3 1 3 1 1 1 2 0 6 5 4 6 8 7 0 3 1 1 3 1 1 0 2 9 4 5 3 4 8 5 2 1 1 4 1 1 1 0 3 4 5 5 4 4 5 4 1 1 1 1 1 2 6 3 3 9 2 9 3 4 1 1 1 1 2 1 4 4 2 5 8 1 1 4 1 1 1 3 3 0 4 5 4 5 2 5 4 4 1 1 1 1 3 2 0 4 5 1 9 3 6 4 1 1 1 4 1 3 1 5 5 4 1 1 3 4 6 Chemicals.. 112 116 120 120 122 123 '189 142 Rubber Products 115 126 185 187 146 151 155 167 162 192 153 130 131 Rubber consumption _ 116 128 128 138 140 148 153 158 160 164 196 156 132 134 Tires and tubes 105 109 109 116 117 123 128 134 131 144 152 126 117 108 Pneumatic tires—. 106 110 110 118 118 124 128 135 132 144 151 127 118 108 Inner tubes 102 107 103 107 115 121 127 132 130 145 155 125 110 103 Minerals—Total _ 122 119 116 96 127 130 134 P136 Fuels 109 116 112 115 116 117 118 121 87 118 123 121 125 P129 Bituminous coal_. 111 124 110 128 127 130 134 143 18 126 132 128 135 P140 Anthracite 85 103 99 98 115 114 112 105 76 88 116 107 120 P122 Crude petroleum.. 111 114 114 111 111 111 112 114 116 118 120 119 122 P125 Metals r!72 r178 '146 '95 U 181 rl81 4 182 P177 Iron ore shipments.. 301 294 162 210 323 326 335 311 L C e o a p d per 1 1 3 1 5 4 1 1 3 1 6 2 1 1 4 1 6 7 1 1 4 1 7 4 1 1 4 1 6 8 1 1 4 1 5 6 1 1 5 1 5 6 1 1 5 1 1 6 1 12 5 1 6 1 1 5 1 9 7 1 1 5 1 2 6 3 1 4 4 4 7 1 1 5 1 2 6 153 Z G S i i o n lv l c d e 3 s rs 1 1 1 1 1 0 1 8 4 1 1 1 2 1 0 6 6 4 1 1 1 4 1 1 1 8 9 1 1 1 2 4 2 0 8 8 1 1 1 2 3 2 3 3 9 1 1 1 2 2 2 5 5 9 1 1 1 2 2 1 6 9 2 1 1 1 2 1 3 5 1 1 1 1 1 3 0 3 3 6 0 1 1 1 2 1 2 7 3 1 1 1 1 3 1 2 6 6 3 1 1 1 1 1 2 1 2 0 5 5 2 131 P137 " Revised. v Preliminary. 1 Includes also paperboard container production which has been carried forward on the basis of seasonal changes since July 1940 when figures were last reported. 2 Includes also printing paper production shown under "Paper." 3 Revised series. Back figures may be obtained from Division of Research and Statistics. NOTE.—For description and back figures, see BULLETIN for September 1941, pages 878-881 and 933-937, and August 1940, pages 753-771 and 825-882. 1174 FEDERAL RESERVE BULLETIN 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 1940 1941 Industry and group Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Total* 107.4 108.9 111.4 114.2 116.6 118.3 118.6 119.4 122.0 124 9 128 7 133.3 133.0 132.5 Durable goods* 104.3 107.4 111.2 114.6 117.6 121.1 122.1 123.0 126.3 129.5 134.0 '140. 8 141.1 141.4 Nondurable goods* __ 110.2 110.3 111.5 113.8 115.7 115.6 115.2 115.9 118.0 120.5 -123.7 126.1 125.3 124.0 Iron, Steel, Products 111.1 112.9 116.1 118.9 122.4 124.8 125.5 126.2 128.3 132.0 136.0 '139.0 140.3 139.9 Blast furnaces, steel works._. 123 123 125 127 130 133 133 133 136 140 145 149 150 149 Bolts, nuts, washers, rivets 116 119 121 128 135 139 145 151 153 160 166 169 173 172 Cast-iron pipe 78 81 84 89 89 88 92 92 93 94 95 95 94 97 Cutlery, edge tools _ 104 107 109 110 110 110 108 110 114 117 122 130 130 130 Forgings 74 77 81 83 88 90 94 96 100 102 111 111 113 Hardware 98 102 105 109 113 113 114 116 115 116 118 r105 116 114 Plumbers' supplies 87 89 90 94 98 99 98 100 101 102 102 102 103 100 Stamped, enameled ware 169 179 188 190 196 194 201 202 204 214 220 228 232 233 Steam, hot-water heating ... 91 92 97 100 103 106 106 107 109 111 114 123 126 125 Stoves 96 95 98 100 108 113 106 106 107 110 114 121 115 109 Structural, ornamental- 78 81 84 86 91 96 100 100 101 103 104 105 106 104 Tin cans, tinware 98 96 99 103 104 109 112 113 113 122 129 131 132 131 Tools 98 101 106 111 116 121 126 128 133 142 146 146 Wirework . 152 170 189 201 207 206 208 208 203 207 214 218 202 229 Machinery 120.0 122.6 126.6 ISO. 9 136.0 141.2 144.2 148.1 155.8 161.6 '167.3 '173.0 176.6 176.7 Agricultural implements 139 141 143 140 143 147 140 126 158 166 170 175 182 180 Cash registers, etc 129 132 132 134 137 137 140 146 151 150 163 168 170 174 Electrical machinery 107 111 116 120 126 131 137 142 147 153 159 164 168 168 Engines, turbines, etc. 176 182 197 211 218 237 239 243 245 259 275 293 314 323 Foundry, machine-shop products. 101 103 107 110 114 118 120 124 129 134 rl39 144 145 Machine tools 247 247 257 265 275 286 296 304 315 326 337 349 366 356 Radios, phonographs _ _ 145 138 134 142 150 155 165 178 189 197 184 191 187 183 Textile machinery 76 79 81 83 86 89 92 95 98 101 104 107 108 111 Typewriters 119 123 126 128 130 131 110 134 138 143 150 155 157 158 Transportation Equipment 120.9 ISO. 2 140.2 14S. 9 145.6 150.4 152 9 154.1 '158 9 '164.8 '174. 6 '196 6 192 2 197.1 Aircraft 3,479 3,881 4,243 4,447 4,731 5,089 5 398 5 509 5 813 6 121 6 538 7 208 7 960 8,830 Automobiles. 107 116 125 127 124 123 123 123 125 128 132 r149 137 130 Cars, electric-, steam-railroad 50 55 58 64 67 75 71 70 70 74 r81 87 98 Locomotives 33 36 39 42 46 52 55 56 59 64 67 75 79 81 Shipbuilding. 186 187 195 204 220 244 262 268 '286 '302 '342 ••387 397 441 Nonferrous Metals, Products 115.7 118.6 122.3 126. S 129.4 1SS.S 135.1 136.2 138.9 140.7 144.1 148.3 148.1 144.6 Aluminum* _ 199 202 207 214 218 229 224 220 229 234 230 238 244 240 Brass, bronze, copper ... 140 147 153 162 168 173 176 179 181 182 190 193 195 195 Clocks, watches 98 100 101 101 102 107 109 111 115 118 121 125 121 105 Jewelry 99 94 96 98 101 102 105 107 111 113 115 120 118 109 Lighting equipment 92 100 103 105 106 110 112 110 112 112 116 123 122 121 Silverware, plated ware 70 72 74 75 76 77 79 79 81 82 84 94 87 86 Smelting, refining 92 92 94 94 96 98 100 101 101 102 102 103 105 103 Lumber, Products 69.0 70.6 71.S 73.6 75 2 76.3 75 5 74 0 74 2 74 6 75 9 '78 9 78 4 77 7 Furniture _ 90 91 91 93 96 97 98 98 101 104 106 108 107 103 Lumber, mill work 63 65 68 71 72 74 72 71 70 69 71 75 76 75 Lumber, sawmills 62 64 64 66 67 68 67 65 65 64 65 68 68 68 Stone, Clay, Glass Products 81.8 83.0 84.7 88.4 90 4 94.6 92 9 92 3 92 3 92 1 93 7 98 6 98 4 98. 4 Brick, tile, terra cotta 60 61 61 65 68 75 74 71 70 69 69 73 74 74 Cement 69 70 72 74 76 75 76 75 74 73 74 76 77 79 Glass 107 109 112 117 117 120 116 118 121 122 124 131 130 129 Marble, granite, slate 45 46 46 45 46 46 47 46 45 45 44 43 41 42 Pottery 94 94 96 100 105 108 108 108 109 109 116 126 123 121 Textiles, Products 101.1 101.9 102.6 105. S 107.2 107. S 107.1 107.6 109.8 112.9 116.1 120.1 117.1 114.9 Fabrics _ . 92.6 93.5 95.2 97.7 98.7 98 8 99 1 100 4 103 3 105 9 109 0 111 1 109 6 107 4 Carpets, rugs___ _ 72 75 79 82 82 85 84 83 86 89 90 89 91 91 Cotton goods 93 94 95 97 99 99 100 101 103 106 111 113 115 113 Cotton small wares 79 81 82 87 90 92 93 94 97 103 107 110 110 108 Dyeing, finishing textiles 128 129 129 129 132 132 134 136 138 141 144 149 143 141 Hats, fur-felt 83 84 80 84 85 83 83 83 80 83 86 86 79 77 Hosiery 138 138 140 141 144 144 142 142 141 144 146 149 144 135 Knitted outerwear 72 69 70 71 74 69 69 68 71 76 81 85 83 78 Knitted underwear 75 74 75 76 77 81 78 78 79 81 79 90 88 88 Knitted cloth 147 151 153 151 149 144 141 143 141 155 163 162 160 157 Silk, rayon goods . 62 61 63 65 64 63 64 66 69 74 75 72 67 61 Woolen, worsted goods.. 86 90 93 99 98 98 98 102 109 109 110 112 108 111 Wearing apparel . . 116.1 116.5 114.8 118.0 121.9 122.0 120.5 119.3 119.8 124.0 127.0 135.1 129.0 127.0 Clothing, men's __ 104 104 102 109 115 114 111 110 114 122 124 124 120 119 Clothing, women's 164 165 164 168 170 166 166 164 159 161 170 194 176 171 Corsets, allied garments 112 112 112 114 114 114 113 114 114 116 119 119 122 124 Men's furnishings 125 126 122 118 116 116 118 118 119 121 124 138 138 135 Millinery _ _ 73 78 74 68 69 76 82 78 78 73 68 75 79 76 Shirts, collars. . 118 119 117 117 122 131 126 125 128 131 133 135 135 134 ' Revised. * Indexes adjusted to Census of Manufactures through 1939. For back figures see BULLETIN for February 1941, p. 166, and for June 1941, p. 569. NOTE.—Figures for September 1941 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. NOVEMBER 1941 1175 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 toCensus of Manufactures through 1937. 1923-25 average=100] 1940 1941 Industry and group Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Leather, Manufactures 89.1 89.9 91.1 93.8 94.3 93.3 93.2 94.3 95.5 96.8 101.0 100.2 97.9 98.6 Boots, shoes 87 88 90 92 93 91 91 92 93 94 98 97 94 94 Leather _ _ __ 82 81 82 84 85 85 86 88 90 90 95 97 96 98 Food, Products _ 129.8 126.9 129.9 132.4 135.6 13S.3 131.0 131.3 132.5 135.0 '137. 3 '137.2 '139. 9 139.2 Baking 146 144 144 144 144 143 145 146 148 149 151 149 152 151 Beverages 272 265 271 281 285 281 279 278 277 287 '286 289 298 293 Butter . _ 96 96 96 102 101 98 99 102 105 107 105 103 104 102 Canning, preserving _ _ _ . 146 130 152 152 157 149 144 139 140 147 156 160 169 170 Confectionery 88 86 86 90 91 89 88 91 92 89 90 97 100 91 Flour 79 79 78 78 78 78 77 78 79 78 80 79 77 79 Ice cream 76 75 79 81 81 80 81 79 82 79 '78 78 80 79 Slaughtering, meat packing 108 109 110 114 121 112 111 113 114 119 121 119 119 121 Sugar, beet ._ __ 106 110 100 102 145 240 144 111 97 99 93 89 76 89 Sugar refining, cane 93 91 95 95 97 92 89 97 103 102 '101 '94 93 98 Tobacco Manufactures 63.0 63.7 63.3 63.4 64.7 66.3 64.9 64.O 65.0 65.8 65.8 65.7 64.4 61.6 Tobacco, snuff 56 57 57 55 57 57 54 54 54 54 53 53 53 54 Cigars, cigarettes ___ _ „ 64 65 64 65 63 68 66 65 66 67 68 67 66 63 Paper, Printing 116.4 115.7 116.1 116.8 117.3 117.1 117.2 118.5 119.8 121.2 122.9 124.8 125.1 124.2 Boxes, paper 119 117 117 120 122 123 122 125 129 132 139 142 143 141 Paper, pulp __ _ _ 117 117 115 116 116 116 117 119 120 123 125 126 128 129 Book, job printing 100 100 102 101 102 103 101 103 104 104 104 108 108 104 Newspaper, periodical printing 117 116 116 118 117 116 116 117 117 117 117 117 118 117 Chemicals, Petroleum, and Coal Products 122.2 121.7 '122. 8 '126. 8 '128.1 '129. 0 '133. 6 '136. 9 '140. 7 '142. 9 145.0 144-3 Petroleum refining 122 121 121 120 120 120 120 121 121 123 125 127 127 127 Other than petroleum 122.2 121.8 '123.3 124.9 '126.6 '128.5 '130.0 '131.1 136.6 '140. 4 '144.7 '146.8 149.3 148.5 Chemicals __ 141 141 143 .47 151 154 157 161 163 168 172 173 179 180 Cottonseed oil, cake, meal 75 62 92 101 102 102 100 94 110 106 107 109 101 88 Druggists' preparations _ _ 117 116" 114 113 113 116 118 119 122 129 132 135 137 142 Explosives __ - 0) 0) 0) (0 (0 0) 0) 0) 0) 0) 0) 0) C1) 0) Fertilizers 113 107 107 107 103 104 103 95 112 118 '124 '129 124 122 Paints, varnishes 126 127 125 127 128 130 130 134 135 136 140 145 148 146 Rayon, allied products _ 306 309 310 311 314 310 306 308 324 330 337 326 328 324 Soap 85 86 86 82 87 88 90 89 91 93 94 98 99 96 Rubber Products 87.0 89.7 91.6 93.6 96.8 99.0 100.4 102.0 103.9 106.1 111.7 113.0 113.3 112.3 Rubber boots, shoes _ _ 54 54 57 60 64 67 69 69 74 78 82 82 79 77 Rubber tires, inner tubes 71 73 74 75 77 78 79 80 82 83 86 87 87 87 Rubber goods, other 149 155 157 160 167 171 174 177 176 179 192 194 200 196 • Revised. 1 Data not available. TOTAL NONAGRICULTURAL EMPLOYMENT [Thousands of persons] Total Employees in nonagricultural establishments3 Year and month e a m m g t n e u r p o i n r c l n a t o u - l y * l- - 2 Total 2 M fa i c n a t n g u * u r- - Mining s C t t i r o o u n n c - - t u i T p p o ti u o r n l a b r i t n t a l i a i s e n c - - s d Trade ci i l m F a c a e l n i i , , n s e s c a a o e e n n u r l - v d s - - m G e e r o n n v t - - 2 f n A o t a a / a r T n v c r i d y l e a i s l SEASONALLY ADJUSTED 1940— S e ptember 35,936 29, 793 10, 280 849 1,318 3,059 6,285 4,174 3,828 634 October - - .. 36, 324 30,181 10, 477 835 1,490 3,053 6,289 4,181 3,856 737 November _ _ 36,827 30, 684 10, 698 833 1,669 3, 053 6,341 4,204 3,886 822 December 37, 460 31,317 10, 899 837 1,974 3,064 6,437 4,226 3,880 884 1941—January _ 37, 571 31, 428 11, 021 849 2,014 3,077 6,298 4,233 3,936 958 February 37, 787 31, 644 11,045 846 2,132 3,087 6,333 4,250 3, 951 1,139 March ._ . 37, 724 31, 581 11,108 855 1,933 3,105 6,351 4,254 3,975 1,343 April 37, 772 31, 629 11,316 572 1,859 3,133 6,474 4,258 4,017 1,554 May _ - - . - 38, 243 32,100 11, 545 877 1,698 3,192 6,449 4,280 4,059 1,679 June 38. 680 32, 537 11,843 889 1,644 3,220 6,536 4,295 4.110 1,758 July 39, 273 33,130 12, 211 914 1,668 3,264 6,614 4,336 4,123 1,821 August _ _____ __. 39.425 33, 282 12,188 923 1,666 3,302 6,685 4,339 4,179 1,934 September. _ ... 39, 354 33, 211 12,144 908 1,701 3,301 6,620 4,334 4,203 1,992 UNADJUSTED 1940—September. 36, 528 30, 385 10,479 846 1,511 3,120 6,321 4, 255 3,853 634 October 36, 867 30, 724 10, 668 856 1,654 3,121 6,362 4,187 3,876 733 November 36, 986 30,843 10, 735 853 1,709 3,065 6,433 4,167 3,881 822 December. . 37, 608 31, 465 10, 856 855 1,720 3,039 6,884 4,180 3,931 884 1941—January 36,621 30, 478 10, 797 852 1,623 3,012 6,165 4,142 3,887 958 February _ _ _ 36,928 30, 785 10, 982 854 1,678 3,028 6,173 4,164 3,906 1,145 March __ __ 37, 227 31, 084 11,152 864 1,631 3,056 6,259 4,187 3,935 1,343 April 37, 676 31, 533 11, 370 564 1,775 3,113 6,463 4,265 3,983 1,546 May . .- 38, 321 32,178 11, 545 869 1,782 3,185 6,421 4,327 4,049 1,662 June. 38.860 32, 717 11,777 876 1,816 3,239 6, 530 4,353 4,126 1,740 July 39, 281 33,138 11,995 888 1,895 3,290 6,512 4,394 4,164 1,857 August _ _- _ 39, 626 33, 483 12,168 900 1,921 3,326 6,564 4,394 4,210 1,944 September 40,065 33, 922 12, 386 906 1,957 3,365 6,659 4,420 4,229 1,992 * Adjusted to Census of Manufactures through 1939. 1 Includes self-employed persons, casual workers, and domestic servants not included in total of employees in nonagricultural establishments. 3 Excludes military and naval forces. NOTE.—Unadjusted data compiled by Bureau of Labor Statistics. Figures for September 1941 are preliminary. For back figures, adjusted for seasonal variation, see pp. 534-535 of the BULLETIN for June 1941. 1176 FEDERAL RESERVE BULLETIN 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 1940 1941 1940 1941 Aug. Sept. May June July Aug. Sept. Aug. Sept. May June July Aug. Sept. Total* 107.4 111.4 124.9 r127. 9 '130. 5 132.8 135 6 105.5 111.6 144.1 '252. 2 '152. 6 157.8 163.0 Durable goods* 102.4 108.2 131.3 135.1 '137.7 138.4 142.3 106.5 115.1 163.1 '173. 9 172.3 177.1 183.5 Nondurable goods* 112.2 1114 118.8 '121.1 123.7 127 5 129.2 1014 107. 7 122.9 '127.9 '130. 7 136.2 140.0 Iron, Steel, Products.. 110.7 113.6 132.9 136.1 137.7 139.9 140.8 113.6 118.0 160.9 168.6 '166. 3 172.1 171.0 Blast furnaces, steel works 122 123 141 144 147 149 149 125 128 173 180 182 183 178 Bolts, nuts, washers, rivets 115 118 161 166 167 171 171 139 139 234 248 224 241 226 Cast-iron pipe 80 82 94 97 98 96 98 76 79 110 115 112 112 117 Cutlery, edge tools 102 107 119 120 124 127 130 93 101 134 139 135 148 150 Forgings 73 77 102 '105 '108 111 113 86 92 '153 '163 157 169 173 Hardware 96 101 117 118 '104 113 113 107 114 142 150 '124 154 155 Plumbers' supplies 87 89 102 102 102 103 99 82 83 105 106 102 107 105 Stamped, enameled ware 164 177 218 220 222 225 229 183 201 265 279 272 289 294 Steam, hot-water heating 90 94 112 114 119 125 128 85 91 129 138 138 148 156 Stoves 98 101 113 116 117 117 116 89 97 119 125 122 128 128 Structural, ornamental 80 83 102 106 107 110 108 73 75 114 120 112 124 120 Tin cans, tinware 108 105 121 132 139 145 145 122 117 146 163 171 185 188 Tools 96 100 135 139 140 143 144 96 104 172 181 '174 183 201 Wirework 146 165 213 216 213 194 222 163 189 277 285 272 252 296 Machinery . 119.2 123.1 162.5 167.7 '172.8 175.5 177.5 131.1 138.0 217.2 '229. 9 '282.9 241.3 246.2 Agricultural implements 131 134 171 172 171 172 171 152 156 229 233 228 228 231 Cash registers, etc. 129 132 151 163 168 170 174 136 140 196 216 214 223 230 Electrical machinery 107 111 154 159 164 167 169 124 131 215 224 232 240 242 Engines, turbines, etc 176 183 272 286 298 314 325 240 251 444 485 '504 541 565 Foundry, machine-shop products. 101 103 135 '139 143 144 145 101 105 166 '178 '177 182 184 Machine tools 238 248 327 339 346 352 357 303 332 507 529 535 553 585 Radios, phonographs 157 160 174 181 189 202 213 150 162 192 200 219 234 257 Textile machinery... 76 78 101 104 106 108 109 74 76 124 131 133 136 141 Typewriters. _ 118 123 144 148 153 156 158 125 137 190 208 217 222 233 Tran A sp ir o c r r t a a f t t ion Equipment 3,4 1 7 0 9 5.0 3,7 1 6 2 4 7.0 6, '1 3 7 0 2 5 . 0 6, r 7 1 3 7 4 8.1 7, ' 2 1 8 79 0 .5 7,9 1 6 7 0 1.4 8,5 1 6 9 5 2.8 3,7 1 2 1 7 5.6 4,2 1 1 4 2 1.4 7, '8 7 1 4 7 5 .1 8, ' 2 24 1 0 2 . 4 9, ' 0 22 7 9 8 . 3 10 2 , 2 46 4 2 .1 11, 2 2 5 6 6 8 .2 Automobiles 86 112 134 135 127 109 126 96 125 171 188 '158 137 163 Cars, electric-, steam-railroad 51 54 80 '85 '89 89 95 47 50 '85 '93 91 94 102 Locomotives 33 36 65 68 76 79 80 33 37 80 91 103 105 109 Shipbuilding 181 188 '311 '339 '375 388 444 211 227 '434 '506 '583 614 705 Nonferrous Metals, Products 113.8 119.8 139.9 141.9 143.5 145.7 146.0 117.0 128.0 166.7 174.6 174.1 182.0 I84.O Aluminum * 195 201 234 228 234 239 239 233 248 322 321 320 343 346 Brass, bronze, copper 138 147 184 190 190 193 195 161 178 247 262 264 274 272 Clocks, watches _. 95 101 116 117 118 118 107 101 109 143 148 138 146 134 Jewelry 99 103 104 107 112 118 119 83 91 98 101 105 113 120 Lighting equipment 88 100 112 114 116 116 121 77 " 90 110 117 118 122 139 Silverware, plated ware ... 69 73 83 84 83 85 87 61 70 91 94 87 94 105 Smelting, refining 91 92 102 102 103 104 103 89 92 112 117 117 118 118 Lumber, Products 71 3 73 4 74 7 76 9 r79 5 81 0 80 8 £8 3 71 2 78 0 84 0 r85 5 92 5 91 2 Furniture 91 95 100 104 106 108 108 82 87 103 110 110 116 118 Lumber, mill work. _ 64 67 70 73 76 78 77 53 55 62 67 68 75 74 Lumber, sawmills 65 66 66 67 70 71 71 62 64 66 71 74 81 78 Stone, Clay, Glass Products 84 5 85 8 95 6 97.1 99 6 101 3 101 5 76.9 79.7 97.8 100.2 '98.9 104.1 105.4. Brick, tile, terra cotta... 64 65 73 75 78 79 79 54 54 69 72 '73 77 77 Cement 75 75 78 79 82 83 84 73 77 85 90 91 94 93 Glass 107 109 124 126 128 130 130 116 121 150 154 147 155 161 Marble, granite, slate 49 49 '47 46 45 44 45 37 38 39 35 35 36 36 Pottery 91 94 113 114 117 119 121 81 87 114 118 115 124 125 Textiles, Products 99.7 102.6 112.5 112.6 113.2 115.5 115.6 87.4 92 6 110. 3 111.4 113.6 119.5 123.4 Fabrics 90.4 92.8 105.1 106.2 107.0 106.9 106.4 80.9 84.8 109.3 111.6 113.3 114. 5 117.8 Carpets, rugs 71 76 89 90 89 91 91 59 65 90 90 90 94 97 Cotton goods 89 92 106 109 109 110 111 80 85 117 120 123 126 130 Cotton small wares 77 79 103 104 105 107 106 73 77 114 116 121 124 125 Dyeing, finishing textiles.. 122 125 141 139 139 136 136 102 107 134 133 134 133 136 Hats, fur-felt.. 87 86 81 83 84 82 79 83 77 77 86 91 90 81 Hosiery _ . 136 139 143 143 143 142 136 144 147 158 158 160 155 151 Knitted outerwear 70 73 77 79 81 81 83 60 64 72 75 75 77 81 Knitted underwear _ . 73 74 82 79 86 86 88 66 68 85 83 91 91 96 Knitted cloth 148 154 155 160 '159 161 161 129 138 149 '154 '154 157 156 Silk, rayon goods 63 64 69 69 69 68 63 51 51 63 64 64 64 61 Woolen, worsted goods __ 87 89 107 108 109 109 110 78 82 113 117 117 119 129 Wearing apparel 116.7 120.7 124.2 121.9 122.3 129.8 131.6 94.9 102.5 105.9 104.1 107. 3 121.9 127.0 Clothing, men's 107 108 119 120 122 123 124 82 83 101 107 109 114 115 Clothing, women's 164 171 165 159 160 176 178 130 142 132 119 128 155 164 Corsets, allied garments 109 112 118 118 115 119 124 109 123 137 139 132 140 149 Men's furnishings __ _ 117 123 122 122 126 129 132 114 120 130 131 '138 145 155 Millinery 73 87 76 63 58 80 85 65 94 51 43 40 75 84 Shirts, collars . 117 122 132 132 129 134 137 102 108 131 136 131 141 147 r Revised. * Indexes adjusted to Census of Manufactures through 1939. For back figures see BULLETIN for February 1941, p. 166. NOVEMBER 1941 1177 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 1940 1941 1940 1941 Aug. Sept. May June July Aug. Sept. Aug. Sept. May June July Aug. Sept. Leather, Manufactures.. 92.0 90.8 95.5 101.0 101.1 99.5 77.0 74.6 97.2 104.7 102.0 Boots, shoes 91 90 93 95 98 96 75 72 92 99 101 96 Leather 90 94 95 97 77 77 107 109 109 114 Food B , a P k r i o n d g ucts 1 1 4 45 7 .7 1 14 4 7 7. 149 '1 1 3 5 5 2 . 2 1 4 5 4 0 1 1 5 5 8 3 .2 1 1 6 5 5 4 .3 1 14 3 0 9.0 1 1 3 4 8 1 .5 1 1 3 4 4 8 . 7 rH 15 4 4 - 4 '1 1 5 5 2 3 . 5 1 1 6 5 5 5 .2 1 1 7 5 2 7 .9 Beverages 299 283 293 310 324 328 314 358 332 362 391 ••421 430 399 Butter 103 100 110 114 112 111 106 89 88 97 105 104 105 99 Canning, preserving 264 269 100 136 210 304 352 248 232 91 134 213 321 395 Confectionery 80 96 81 80 83 91 102 77 98 84 86 85 101 115 Flour 80 81 77 78 80 78 81 76 81 75 79 82 81 93 Ice cream 91 81 87 '93 96 96 85 78 70 75 83 85 84 77 Slaughtering, meat packing. 107 108 117 120 119 118 119 112 113 133 138 139 143 147 Sugar, beet 89 102 47 48 52 64 82 88 116 54 57 57 68 90 Sugar refining, cane 96 92 103 103 95 99 83 78 102 100 97 Tobacco Manufactures.. 64.4 65.8 65.5 65.. 65.8 63.5 65.9 67.1 70.1 69.8 70.0 70.2 Tobacco, snuff 55 56 53 52 52 52 54 65 67 67 67 68 68 69 Cigars, cigarettes. 67 66 67 67 65 62 66 67 70 70 70 70 Paper, Printing.. 115.2 116.. 120. 8 121.6 123.0 128.1 124.7 110.9 113.4 124.9 128.6 '128. 6 130.9 Boxes, paper 118 120 130 135 139 142 145 131 134 159 170 174 182 188 Paper, pulp 117 117 123 125 126 128 129 125 124 146 158 157 163 163 Book, job printing 100 100 103 102 105 106 104 86 96 95 99 Newspaper, periodical printing. 114 116 118 117 115 115 117 106 114 114 110 Chemicals, Petroleum, and Coal Products 119.4 123. 0 '135. rl36. 8 r138. 9 141.8 146.1 134.4 138.1 '164.9 '172. 4 175.9 179.2 186. 4 Petroleum refining 123 123 122 125 127 128 128 137 139 146 157 157 159 168 Other than petroleum 118.6 123.1 ••138. 6 139. 6 141. 145.2 150.5 133. 137.8 170. 7 177. 2 181.7 185.4 192.0 Chemicals 142 143 167 172 176 180 182 169 171 222 233 240 247 250 Cottonseed, oil, cake, meal.. 52 81 72 66 63 71 115 49 78 66 62 60 65 117 Druggists' preparations 114 118 125 127 129 134 144 127 133 143 150 163 165 176 Explosives 0) 0) 0) 0) 0) 0) 0) (0 0) 0) 0) 0) 0) 0) F P S R o e a a r a i y t n p i o t l n s iz , , e v a r a s ll r i n ed is h p e r s oducts 1 3 2 8 0 8 4 1 8 4 1 3 9 2 1 6 6 2 3 1 1 9 2 2 4 2 4 7 1 1 3 9 2 9 4 3 7 3 5 1 3 '9 9 2 4 6 1 4 6 3 1 9 2 9 4 0 9 7 5 3 1 1 2 4 0 9 7 4 9 8 1 3 1 3 7 1 0 2 1 8 2 1 3 1 8 3 2 0 6 8 7 5' 3 1 1 1 5 7 2 2 6 0 7 6 3 1 1 9 6 7 2 4 2 8 9 1 1 3 ' 3 9 6 7 3 0 9 3 1 3 1 9 6 7 3 1 8 1 0 3 1 1 1 6 7 1 3 9 0 1 3 Rubber Products 85.9 106. 110.7 111.4 111. 8 112.1 87. 95.7 128.7 14L2 r135. 6 138.9 135.9 Rubber boots, shoes 55 56 75 78 79 79 80 57 60 88 98 94 102 105 Rubber tires, inner tubes. 71 73 83 86 87 87 87 76 85 111 122 118 117 110 Rubber goods, other 144 152 182 190 189 193 193 142 153 207 225 214 228 231 ' Revised. l Data not available. NOTE.— Figures for September 1941 are preliminary. Back data may be obtained from the Bureau of Labor Statistics. Underlying figures are for payroll period ending nearest middled month. HOURS AND EARNINGS OF WAGE EARNERS IN MANUFACTURING INDUSTRIES [Compiled by the Bureau of Labor Statistics] Average hours worked per week Average hourly earnings cents per hour) Industry and group 1940 1941 1940 1941 July Aug. Apr. May June July Aug. July Aug. Apr. May June July Aug. Total 37.3 38.4 40.0 40.8 41.3 40.3 41.0 66.7 66.8 70.8 72.6 73.8 74.4 74.5 Durable goods__ __ 37.9 39.7 41.5 42.5 43.1 41.5 42.6 72.7 73.1 78.5 80.6 82.2 82.6 83.0 Iron, Steel, Products _ 37.2 38.8 40.8 41.5 42.0 39.9 41.4 11.1 77.7 84.1 85.8 86.3 86.2 87.1 Machinerv _ 40.5 41.2 44.5 45.4 45.6 44.6 45.1 74.4 74.5 78.9 81.8 83.2 83.6 84.4 Transportation Equipment 36.2 39.9 39.7 42.4 43.8 41.2 41.9 89.1 89.7 92.3 94.5 97.6 98.8 99.0 Nonferrous Metals, Products 38.6 40.1 42.0 42.8 43.1 42.0 43.0 70.1 70.3 74.9 77.0 79.4 80.3 80.8 Lumber, Products - 37.0 39.4 40.2 40.1 40.9 39.9 41.8 51.9 52.6 54.7 55.6 57.0 57.7 58.8 Stone, Clay, Glass Products 35.5 37.0 38.0 38.5 38.6 37.4 38.5 66.5 66.8 69.5 71.0 71.7 72.0 72.1 Nondurable goods 36.7 37.2 38.4 38.9 39. 4 39.0 39.4 61.5 61.3 62.9 64.I 65.0 65.7 65.8 Textiles, Products -_ 33.8 34.9 37.3 37.9 38.1 37.4 38.1 50.2 51.2 52 A 53.0 53.4 55.0 55.4 Fabrics . 34.8 35.7 38.3 38.8 39.1 38.5 38.9 48.6 48.6 50.9 52.0 52.2 53.4 53.3 Wearing apparel 31.9 33.5 35.3 36.2 36.0 35.4 36.4 53.4 55.8 55.3 55.0 55.9 58.2 59.6 Leather, Manufactures 1 35.9 35.8 38.0 37.5 38.7 38.7 39.2 55.3 55.4 57.9 59.0 59.9 60.9 61.5 Food, Products _____ ____- 39.9 40.4 39.6 40.3 41.0 41.1 41.3 62.5 61.5 65.5 67.0 67.2 66.1 65.8 Tobacco Manufactures 36.8 36.1 33.2 36.9 37.6 37.3 37.2 50.2 49.2 50.6 50.9 51.7 52.3 52.0 Paper, Printing 38.4 38.2 39.6 40.0 40.1 39.6 40.1 79.1 78.9 80.5 81.1 82.6 82.5 82.4 Chemicals, Petroleum, and Coal Products 38.5 38.7 39.9 39.8 40.5 40.0 40.0 78.3 77.8 77.3 80.6 82.4 83.8 83.7 Petroleum refining _ 35.3 35.8 37.0 37.0 38.2 37.4 38.0 98.6 97.7 99.5 100.8 102.0 103.0 102.5 Other than petroleum refining- 39.7 39.8 40.7 40.7 41.2 40.8 40.6 70.9 70.7 70.7 74.4 76.1 77.7 78.0 Rubber Products 35.7 36.3 39.4 40.3 41.4 39.2 39.4 78.5 77.9 80.4 81.6 83.6 84.5 86.1 ' Revised. 1 Beginning with October 1940 figures are not comparable because of expansion in reporting sample. 1178 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CONSTRUCTION CONTRACTS AWARDED, BY TYPES OF CONSTRUCTION [Figures for 37 States east of the Rocky Mountains, as reported by the F. W. Dodge Corporation. Value of contracts in millions of dollars.] Nonresidential building Month Total R b e u si i d ld e i n n t g ial Factories Commercial Educationall Other i P a u u n b t d l i i l c i p t u i w e b s o l i 1 r c ks 1940 1941 1940 1941 1940 1941 1940 1941 1940 1941 1940 1941 1940 1941 January 196.2 305.2 77.4 111.3 12.9 55.9 15.9 26.9 6.1 11.6 17.7 24.2 66.3 75.1 February _ 200.6 270.4 74.9 116.5 15.4 37.8 20.2 20.9 8.1 7.9 26.9 23.5 55.2 63.9 March 272.2 479.9 121.7 147.9 21.8 121.8 23.1 33.1 9.3 10.4 19.6 36.1 76.7 130.6 April... 300.5 406.7 135.4 166.5 23.5 66.2 24.0 36.2 17.4 11.2 24.0 29.7 76.3 96.9 May 328 9 548.7 145 9 201 3 23 2 81 1 26 1 50.8 15 3 17.1 25 6 53.5 92.8 144.9 June _- 324.7 539.1 135.3 205.6 15.2 102.3 33.1 35.7 14.3 13.5 29.4 49.0 97.5 133.0 July 398.7 577.4 140.4 205.0 49.5 109.8 38.9 37.2 16.5 19.1 34.1 54.5 119.3 151.7 August 414.9 760.2 153.0 231.5 39.6 135.7 28.6 69.8 14.4 11.7 36.6 69.4 142.8 242.0 September _ 347.7 152.4 38.0 27.1 9.8 26.4 94.0 October 383.1 148.5 47 1 29.4 18.6 41.2 98.2 November 380 3 152 8 79 0 24 9 8 5 35 9 79.1 December 456.2 159.3 77 3 27 1 8.9 69.3 114.3 Year 4,004 0 1, 596. 9 442.4 318.3 147.2 386.7 1,112.4 i Not strictly comparable with data for earlier years due to changes in classification. CONSTRUCTION CONTRACTS AWARDED, BY OWNERSHIP [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 Public ownership i Private ownership i Month 1936 1937 1938 1939 1940 1941 1936 1937 1938 1939 1940 1941 1936 1937 1938 1939 1940 1941 January 215 243 192 252 196 305 149 112 118 148 93 111 66 130 75 104 104 194 February 140 188 119 220 201 270 79 69 51 111 82 96 62 119 68 109 119 174 March 199 231 227 301 272 480 96 66 95 128 95 226 103 165 132 173 177 254 April .. 235 270 222 330 301 407 105 74 99 160 103 169 130 195 123 170 197 238 May 216 244 283 308 329 549 94 93 144 135 112 255 122 151 139 174 217 294 June 233 318 251 288 325 539 116 137 108 128 147 302 116 180 143 161 177 237 July 295 322 240 300 399 577 153 131 98 137 205 346 141 191 142 163 194 231 August 275 281 313 312 415 760 153 104 171 158 195 509 122 178 142 154 220 251 September 234 207 301 323 348 623 116 80 160 144 144 400 119 127 141 179 204 223 October 226 202 358 262 383 101 78 203 92 175 125 124 154 170 209 November 208 198 302 300 380 89 93 179 144 195 119 106 123 156 186 December... 200 209 389 354 456 82 115 279 225 258 117 94 110 129 198 Year 2,675 2,913 3,197 3,551 4,004 1,334 1,152 1,705 1,708 1,802 1,341 1,761 1,492 1,842 2,202 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 Number Liabilitie3 Federal Reserve district Sept. Aug. Sept. Federal Reserve 1941 1940 1941 1940 district Boston 31, 284 r41, 779 26, 700 Sept. Aug. Sept. Sept. Aug. Sept. New York 57, 862 '76, 321 53,900 Philadelphia 37, 932 26, 437 23, 934 Boston _ «. 65 60 44 722 786 630 Cleveland 46, 865 '52, 589 34, 643 New York 245 357 321 3,406 3,214 3,918 Richmond 77, 738 ••146, 093 34,192 Philadelphia 54 68 75 383 1,445 701 Atlanta 115, 995 ••102, 851 31, 323 Cleveland 41 47 36 490 750 1,049 Richmond 25 32 37 367 377 348 Chicago 61,107 '"118,723 69,156 Atlanta _ _ 30 42 43 632 317 488 fit. Louis ... 99, 462 '62, 782 25, 467 Chicago 90 136 145 931 2,090 1,337 Minneapolis 10, 030 13, 597 12, 028 St. Louis 27 23 36 284 183 665 Minneapolis 19 15 20 1,076 75 240 Kansas City 38, 756 25, 462 13, 744 Kansas City 35 42 49 277 217 255 Dallas 46, 261 r93, 599 22, 564 Dallas 11 20 23 121 210 159 San Francisco 93 112 147 704 1,470 1,607 Total (11 districts) 623, 292 760, 233 347, 651 Total 735 954 976 9,393 11,134 11, 397 r Revised. 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. NOVEMBER 1941 1179 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MERCHANDISE EXPORTS AND IMPORTS [In millions of dollars] Merchandise exports i Merchandise imports 2 Excess of exports Month 1937 1938 1939 1940 1941 1937 1938 1939 1940 1941 1937 1938 1939 1940 1941 January 223 289 213 370 325 240 171 178 242 229 -18 118 35 128 '96 February _. _ 233 262 219 347 303 278 163 158 200 234 -45 99 61 147 '69 March 257 275 268 351 357 307 173 190 217 268 -51 102 77 134 89 April 269 274 231 323 387 287 160 186 212 287 —18 115 45 111 100 May . . _ 290 257 249 324 385 285 148 202 211 297 5 109 47 112 88 June. ... 265 233 236 350 330 286 146 179 211 280 -21 87 57 138 50 July 268 228 230 317 359 265 141 169 232 278 3 87 61 84 81 August 277 231 250 351 P455 246 166 176 221 P283 31 65 74 130 September. 297 246 289 295 233 168 182 195 63 79 107 101 October 333 278 332 344 224 178 215 207 108 100 117 137 November ._ _ 315 252 292 328 223 176 235 224 92 76 57 104 December 323 269 368 322 209 171 247 253 115 98 121 69 Year 3,349 3,094 3,177 4,021 3,084 1,960 2,318 2,625 265 1,134 859 1,396 Jan.-Aug 2,082 2,049 1,896 2,732 P2, 900 2,194 1,267 1,439 1,747 P2, 154 -113 782 457 985 P746 p Preliminary. ' Revised. 1 Including both domestic and foreign merchandise. 1 General imports, including merchandise entered for immediate consumption and that entered for storage in bonded warehouses. Source.—Department of Commerce. Back figures.—See BULLETIN for February 1937, p. 152; July 1933, p. 431; and January 1931, p. 18. FREIGHT-CAR LOADINGS, BY CLASSES REVENUES, EXPENSES, AND INCOME OF CLASS 1 RAILROADS1 [Index numbers; 1935-39 average=100] [Millions of dollars] For- Mis- Mer- Total Coal Coke Grain L st i o v c e k - p u e r c s o t t d s - Ore la o ce u n l s - e- c I d . h C i a s .I e n . - c> ra p T i e l o r w a ta t a i l n y g ra T il o w ta a l y o r p a e i N l r w a e t t a in y g in N co e m t e revenues ./A ^_/v> A-I.O \>O income SEASONALLY ADJUSTED SEASONALLY 1940—Aug 112 124 162 96 96 115 139 110 95 ADJUSTED* Sept 112 114 147 '107 98 122 145 112 95 Oct 110 91 149 100 99 128 181 116 96 1940—July.... 356 302 54 13 Nov 116 109 150 98 98 131 181 120 97 Aug.... 365 '305 '60 16 Dec 119 107 • 153 96 96 133 164 125 99 Sept.... 377 309 67 25 1941—Jan 122 109 145 102 88 138 180 130 99 N O o ct v 3 3 7 6 9 3 3 31 1 2 1 6 5 7 2 25 8 Feb 124 113 149 102 93 133 181 131 101 Dec 401 316 85 43 Mar 126 128 168 113 93 127 192 128 100 Apr 112 45 137 113 93 130 266 130 102 1941—Jan 389 316 73 32 May 135 138 182 124 91 130 266 136 102 Feb.... 402 319 84 43 June ... 139 156 189 126 88 136 152 139 102 Mar. .. 417 334 83 41 July.— 138 150 200 112 83 149 156 140 100 Apr.... 382 323 59 '18 Aug 139 158 199 103 84 152 155 141 99 May__. 439 346 93 50 Sept 130 133 176 111 84 138 149 135 97 June... 474 363 110 68 July—. 471 370 100 58 UNADJUSTED Aug 485 374 111 1940-Aug 113 109 136 117 91 120 244 110 96 UNADJUSTED Sept 125 120 144 117 129 132 254 124 100 Oct 125 104 149 107 152 135 238 132 100 1940—July—_ 366 308 58 '17 Nov 122 121 159 96 124 129 145 125 98 Aug '382 315 '67 22 Dec 112 121 167 87 92 119 46 116 95 Sept— 383 308 74 31 1941—Jan 113 124 174 90 84 124 45 115 94 N Oc o t v.... 4 3 1 7 4 5 3 3 2 0 7 4 8 7 7 1 4 3 3 1 Feb 115 129 183 85 75 128 45 118 98 Dec 382 303 79 51 Mar..... 120 132 175 97 74 127 50 124 101 Apr 108 38 120 96 82 130 203 131 103 1941—Jan 377 315 62 20 May 131 117 167 107 82 135 276 138 102 Feb._. 358 300 58 15 June .-_ 136 131 170 123 69 141 265 141 101 Mar.... 416 336 81 35 July 138 127 172 163 70 149 283 139 99 Apr. ___ 375 322 53 7 A Se u p g t 1 1 4 4 0 5 1 1 3 4 9 0 1 1 6 7 7 2 1 1 2 2 5 2 1 8 1 0 1 1 1 6 4 0 9 2 2 7 6 1 1 1 1 4 5 1 0 1 9 0 9 2 J M u a n y e . . . . . . 4 4 4 55 2 3 3 5 6 4 2 8 9 9 3 4 53 3 July— 485 379 106 64 ' Revised. Aug 494 382 111 P67 NOTE.—For description and back data, see pp. 529-533 of the BULLETIN for June 1941. Based on daily average loadings. Basic data compiled by Associa- r Revised. p Preliminary. tion of American Railroads. Total index compiled by combining indexes for * Derived from InterstateCommerce Commissiondata. classes with weights derived from revenue data of the Interstate Commerce 1 Excludes switching and terminalcompanies. Commission. NOTE.—Descriptive material and back figures mly be obtained from the Division of Research and Statistics. 1180 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DEPARTMENT STORE STATISTICS MONTHLY INDEXES OF SALES AND STOCKS SALES BY DEPARTMENTS Index numbers based on value figures; 1923-25 average=100 Percentage change from corresponding period of preceding year Seasonally adjusted Unadjusted Nine Department September months 1938 1939 1940 1941 1938 1939 1940 1941 1941 1941 NET SALES—entire store + +17* Jan 90 88 92 101 70 69 71 79 Main Store +18 Feb... 88 88 90 103 70 69 71 81 Basement Store +25 +14 Mar... 86 88 89 103 77 82 86 93 Women's, girls', and infants' apparel and ac- +18 Apr... 83 88 89 104 86 88 86 106 cessories +32 +16 May.. 80 87 89 105 80 87 89 105 Main store i_ +23 +16 June.. 82 86 91 104 79 83 87 100 Women's and misses' coats and suits +56 +27 July.. 83 87 92 115 58 60 64 79 Women's and misses' dresses +14 +11 Aug... 83 88 98 134 65 69 77 106 Blouses, skirts, sportswear, sweaters, Sept.. 85 90 97 116 91 97 105 125 knit apparel +21 +19 Oct... 86 92 94 92 99 101 Juniors' and girls' wear +19 +19 Nov... 87 93 100 99 106 114 Aprons, housedresses, uniforms +20 +14 Dec... 88 95 101 156 168 179 Women's underwear, slips, negligees.. +24 +15 Infants' wear +18 +16 Year.. 85 90 94 Women's and children's shoes +14 +12 Furs _ +107 +45 Basement2 +18 +U Jan... 71 67 68 71 63 60 61 64 Men's and boys' wear +16 +13 F M e a b r . . . . . 7 7 0 0 6 6 8 8 7 7 1 0 7 7 3 4 6 7 7 1 6 6 9 5 6 7 8 1 7 7 0 5 Main M e st n o ' r s e c 1 lothing +18 +17 +16 +H Apr... 69 67 69 74 71 69 71 76 Men's furnishings, hats, caps +19 +11 May.. 69 66 68 74 71 68 70 76 Boys' clothing and furnishings +14 +14 J J u u n ly e . . . . 6 6 8 7 6 6 7 7 6 6 7 8 8 7 2 7 6 6 5 1 6 6 0 4 6 6 1 4 7 7 3 3 Basement2 +n +10 A S O e u c p g t t . . . . . . . . 6 6 6 7 7 7 6 6 6 7 8 9 6 7 7 9 0 1 8 9 7 2 6 7 7 5 0 4 6 7 7 5 1 7 6 7 7 6 3 9 8 9 4 5 Hom M e a fu in r F n u s i r s to n h r i i e t n u l g r s e, beds, mattresses, springs- +25 + + 2 2 8 8 +25 + + 2 n 4 Nov.. 67 71 72 78 82 83 Domestic floor coverings +27 +26 Dec... 66 68 71 62 64 66 Draperies, curtains, upholstery +24 +15 Major appliances (refrigerators, wash- Year.. ers, stoves, etc.) +51 +40 Domestics, blankets, comforters, lin- Back figures.—Department store sales, see BULLETIN for August 1936, ens, towels +26 +24 p. 631, for October 1938, p. 918, and for January 1941, p. 65; department Basement (including domestics, blankets, store stocks, see BULLETIN for March 1938, p. 232. linens, towels)! +H +20 Piece goods (dress and coat yard goods, all WEEKLY INDEX OF SALES materials) +18 + 7 Weeks ending on dates shown. 1935-39 average=100 B M a a s i e n m e s n to t re + + 1 1 8 7 + + 7 9 1938 1939 1940 1941 Shoes (basement only) +10 + 8 Sept. 3____105 Sept. 2 108 Aug. 31 118 Aug. 30 152 * Based on reports from 244 stores. Reports of total sales from a larger 1 1 0 7 _ _._ 1 9 1 4 1 9 98 Sept. 1 7 4 . .--1 1 0 2 9 3 Sept. 1 6 3 1 1 2 3 2 3 n m u e m nt b s e , r sh o o f w st e o d r e a s, n i i n n c c l r u e d a i s n e g o m f a 2 n 4 y p s e t r o re c s e n n t ot f o r r e p S o e rt p i t n e g m s b a e l r e s a b n y d d 1 e 9 p a p rt e - r 24 104 23™ .107 21 117 20 131 cent for the first nine months of 1941, as indicated in the table below. Oct. 30 120 28 120 27 148 1 Group totals for main store include sales in departments not shown 8 112 Oct. 7 123 Oct. 5 125 Oct. 4 169 separately. 15 103 14 112 12 ...115 11 130 2 Group totals for basement are not strictly comparable with those 22____105 21 116 19 123 18 131 shown for main store owing chiefly to inclusion in basement of fewer departments and somewhat different types of merchandise. SALES BY FEDERAL RESERVE DISTRICTS AND BY CITIES Percentage change from corresponding period of preceding year S 1 e 9 p 4 t 1 .A 1 u 9 g 4 . 1 N m 1 i o 94 n s 1 . e S 1 e 9 p 4 t 1 . A 19 u 4 g 1 . N m 19 o in 4 s. e 1 S 1 e 9 p 4 t 1 . A 19 u 4 g 1 . N m 19 o i 4 n s. 1 e S 1 e 9 p 4 t 1 . Aug. m N 19 o i 4 n s. 1 e United States.— +24 +32 +19 Cleveland (cont'd) Chicago +25 +18 Dallas +22 +35 +19 Boston +26 +31 +19 Cleveland +33 +43 +25 Chicago +22 +18 +11 Shreveport +28 +39 +18 New Haven +21 +32 +17 Columbus +26 +32 +18 Peoria +22 +31 +15 Dallas +27 +38 +19 Portland +32 +29 +19 Toledo +16 +32 +18 Fort Wayne +32 +43 +28 Fort Worth.... +30 +31 +20 Boston +27 +28 +15 Youngstown... +35 +36 +28 Indianapolis ... +22 +36 +20 Houston +9 +34 +16 Springfield +25 +37 +21 Erie +34 +50 +27 Des Moines +22 +19 +12 San Antonio._. +29 +38 +27 Providence +30 +30 +20 Pittsburgh +23 +37 +18 Sioux City +37 +16 +14 Wheeling +29 +53 +25 Detroit +29 +42 +25 San Francisco +29 +34 +20 N C Ph e l A N T W B A P Y C e N N S L P R B B E R w i v l y o h r a l u r k a i e o o e l i e i e i m e i n a b r n n u f i d w a r w l c r l d a Y f n l a g k k o c a c e d g g h i a a g c a o n t n a l e n a i r i h e l Y h p d u o e a n r r d o r n y s s s k k h k n a a p s e t - o n g t e i e e B m o l e r a a . F p r e k r r a t t t h p a i r o . i l C s r _ n a l e i i _ s . e . . t . . y . . _ . + + + + + + + + + + + + + + + + + + + + + + 4 2 2 2 4 1 1 2 2 2 2 3 3 2 2 3 2 1 3 2 2 2 1 0 1 1 2 8 1 1 1 0 0 1 1 4 4 7 2 7 0 0 1 7 r r + + + + + + + + + + + + + + + + + + + + + + 3 4 5 2 4 3 4 2 2 3 3 4 2 3 3 3 6 2 3 4 2 4 9 6 3 9 5 9 1 1 3 3 9 9 1 5 8 0 2 7 0 2 1 + + + + + + + + + + + + + + + + + + + + + + 2 1 3 1 2 1 1 1 2 1 1 1 1 2 2 1 1 1 3 1 1 2 9 8 3 5 3 6 6 8 1 5 9 6 6 4 4 4 7 5 4 6 8 3 R A i t J N W C J N c l W H M T A K B L N R B M B C C a a a h h y a a a i h a o n e n i t h u c c m a o a i c l r w m l a s t t n r a n o n k a k c a s a n t o m h f o h r r c x s i t s s h t o o n n p l t n m l m v t t i h o o v O e n i i g e l t a o d a n i k n a n n b n i s s o o R o l n n r g l t g t l g v u n l r l m o e - o o t o e e t i e h r d S o n n o l o g u e a a l n a , n e g g r n m l S y e a e s . m . . . . . C . . . . . . . . . . . + + + + + + + + + + + + + + + + + + + + + + + 1 1 2 2 2 2 3 1 2 1 2 2 2 2 3 1 2 2 3 2 1 2 6 6 7 0 0 6 1 4 0 8 9 9 4 0 0 6 8 2 7 1 2 9 1 + + + + + + + + + + + + + + + + + + + + + + + 3 3 3 6 2 3 3 4 3 3 4 3 2 3 4 4 4 3 4 2 4 3 3 ' 4 2 7 7 0 0 6 6 8 3 8 8 1 3 1 1 0 8 5 5 4 4 + + + + + + + + + + + + + + + + + + + + + + 2 1 2 3 1 4 2 2 2 1 2 2 1 3 1 2 1 2 2 1 2 2 2 9 1 7 7 4 4 3 2 5 2 1 6 1 7 2 5 5 3 9 1 2 M S K t a . i L M F G L L M J E D H T W T F Q S S K S O O n n o p l a t t L o o i v u o n r s e u u k a m . . i e i p i t n r a a u o e r a l p l n n n c i t l t m i l t L J s w a s a s n u n a l c i n n t e h s v i a e o s i n p h i d h o h c s g a S p k a i n e s v s o a y v t o s u i C a f R r h u g m e i a n R l i i i m l i i k i p e s o l l s s t s i C a e l l h y e a t c o d e p h e k i n i t d C y s i . . t _ . y . + + + + + + + + + + + + + + + + + + + + + + + + + 1 2 2 2 2 2 3 2 1 3 1 2 3 3 1 2 3 2 1 3 2 2 2 2 2 0 7 5 8 4 8 2 4 3 3 6 9 0 ' 3 6 9 1 4 0 8 3 1 2 6 + + + + + + + + + + + + + + + + + + + + + + + + 3 3 4 5 5 3 3 2 3 2 3 5 3 2 2 2 3 4 2 1 2 2 3 2 0 1 5 7 0 0 6 9 1 4 0 1 2 9 4 0 6 2 2 4 1 7 6 6 + + + + + + + + + + + + + + + + + + + + + + + + + 2 1 3 1 3 1 1 1 2 2 2 4 1 1 1 1 1 2 1 1 2 1 2 1 1 6 7 0 6 7 7 5 5 1 7 1 1 8 9 7 4 8 2 5 3 3 1 1 2 7 V B P F L L S O S S S S S P B Y S B E T W S S h r a a a a o a t o a a o a e p a o v e a a B N e o n n a n l k c o s l n a n r o c i l k e k t l s c l s r l e t e t e g t o a e k r l n A l i i J D e t l a a k F r r L n a a e m j n m l m a a o o s k m t e B o n n r i i a t n a g n o f s R x e e t W a a a a p g d i n e e e e k d n h g l e n o n a e a d n e e a o l a a s l c d c y d t m e l a o n i h N C l s s a d c a i t o p „ y a . . . . + + + + + + + + + + + + + + + + + + + + + + + 2 3 4 1 2 3 2 2 3 1 3 2 2 2 3 2 2 4 4 3 2 4 1 2 4 5 3 4 0 5 8 3 8 9 7 2 9 1 1 8 8 2 3 5 0 6 + + + + + + + + + + + + + + + + + + + + + + 3 2 6 5 3 4 3 2 2 2 3 2 4 3 3 3 4 3 5 3 4 2 2 7 1 7 1 0 1 8 2 0 0 7 2 1 7 3 9 4 4 7 5 4 + + + + + + + + + + + + + + + + + + + + + + + 3 2 1 1 1 1 3 1 2 4 1 1 1 1 2 1 3 4 6 6 8 0 9 1 5 8 8 3 6 7 3 0 3 1 9 9 1 7 5 1 0 r Revised. NOVEMBER 1941 1181 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 com- prod- Foods Chemimodi- ucts Hides and Textile Fuel and Metals Building cals and House- Miscelties Total leather products lighting and metal materials allied furnish- laneous products materials products products ing goods 1929 95.3 104.9 f)9.9 91.6 109.1 90.4 83.0 100.5 95.4 94.0 94.3 82.6 1930 86.4 88.3 30.5 85.2 100.0 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 f>l,0 70.2 72.9 54.9 70.3 80.2 71.4 73.9 75.1 64.4 1933 65.9 51.4 f>0.5 71.2 80.9 64.8 66.3 79.8 77.0 72.1 75.8 62.5 1934 74.9 65.3 70.5 78.4 86.6 72.9 73.3 86.9 86.2 75.3 81.5 69.7 1935 80.0 78.8 *3.7 77.9 89.6 70.9 73.5 86.4 85.3 79.0 80.6 68.3 1936 80.8 80.9 S2.1 79.6 95.4 71.5 76.2 87.0 86.7 78.7 81.7 70.5 1937 86.3 86.4 W. 5 85.3 104.6 76.3 77.6 95.7 95.2 82.6 89.7 77.8 1938 78.6 68.5 73.6 81.7 92.8 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 1940 78.6 67.7 71.3 83.0 100.8 73.8 71.7 95.8 94.8 77.0 88.5 77.3 1940—July- 77.7 66.5 70.3 82.3 99.0 72.4 71.1 95.1 92.5 77.0 88.5 77.7 August _ 77.4 65.6 70.1 82.0 96.9 72.3 71.1 94.9 93.3 76.7 88.5 76.7 September 78.0 66.2 71,5 82.3 98.3 72.5 71.0 95.4 95.6 76.8 88.5 76.5 October 78.7 66.4 71.1 83.5 100.4 73.6 71.6 97.3 97.8 76.9 88.6 76.9 November 79.6 68.2 72.5 84.1 102.3 74.5 71.9 97.6 98.9 77.5 88.6 77.5 December 80.0 69.7 73.5 84.1 102.3 74.8 71.7 97.6 99.3 77.7 88.9 77.3 1941—January 80.8 71.6 73.7 84.3 102.4 75.2 72.1 97.7 99.6 78.6 89.0 77.1 February 80.6 70.3 73.5 84.4 101.6 76.4 72.1 97.6 99.3 78.5 89.1 76. & March 81.5 71.6 75 2 84.9 102.6 78.4 72.0 97.7 99.5 79.8 89.5 77.6 April 83.2 74.4 77.9 85.9 103.9 81.0 72.9 97.9 100.1 81.8 90.4 78.6 May. ._._ 84.9 76.4 79.5 87.4 106.4 83.0 75.6 98.1 100.4 83.6 91.4 79.6 June 87.1 82.1 83. 1 88.6 107.8 84.5 77.9 98.3 101.0 83.8 93.1 80.6 July 88.8 85.8 84.7 89.7 109.4 86.2 78.5 98.5 103.1 85.2 94.4 82.0 August 90.3 87.4 87.2 90.8 110.2 88.3 79.0 98.6 105. 5 86.0 95.4 83.7 September 91.8 91.0 89.5 91.6 111.3 89.7 79.3 98.6 106.4 87.4 97.2 85.1 Week ending— 1941-July 5 87.7 84.1 84.1 89.2 108.8 84.1 79.0 98.4 101.7 84.6 94.3 81.2 July 12 88.1 85.0 84.1 89.5 109.3 84.3 79.1 98.6 102.4 85.1 95.3 81.3 July 19 88.3 85.4 83.8 89.7 109.6 85.0 79.3 98.6 102.6 85.0 95.4 81.7 July 26 88.8 86.7 84 6 90.0 109.7 86.4 79.4 98.6 102.7 85.0 95.5 81.8 August 2 89.2 87.2 85. 5 90.2 109.7 86.6 79.4 98.6 103.3 85.5 95.8 82.3 August 9 89.6 87.8 86.2 90.6 109.9 87.1 79.6 98.6 104.2 85.7 95.9 83.0 August 16 89.6 86.4 86.7 90.7 110.2 87.4 79.5 98.7 104.8 85.9 96.4 83.1 August 23 90.0 86.7 87.0 90.9 110.8 87.3 79.8 98.6 105.2 85.9 96.8 83 6 Aueust 30 .. 90.6 88.6 88.2 91.1 110.9 87.6 79.8 98.7 105.7 85.8 96.9 84.1 SeDtember 6 91.0 89.1 88,6 91.4 111.2 88.3 79.9 98.7 106.0 86.0 97.1 84.5 September 13 ___ 91.6 91.6 89.1 91.6 111.4 88.7 80.0 98.7 105.9 87.3 97.9 84.9 September 20 91.5 91.2 88 5 91.8 111.7 89.2 80.0 98.7 106.2 87.8 98.0 85.0 September 27 91.2 89.9 87.6 92.0 112.3 89.6 80.1 98.7 »106. 6 88.1 98.3 85.1 October 4 91.6 90.3 89.7 92.1 112.4 89.9 80.1 98.7 106.6 89.7 98.5 85.0 October 11 91.6 90.5 89.2 92.3 112.6 90.1 79.9 98.6 107.1 89.8 99.7 85.9 October 18 91.7 89.8 88.4 93.1 113.2 90.2 80.0 102.2 106.9 89.7 99.9 85.5 October 25 91.2 88.1 87.5 93.0 113.2 90.3 79.9 102.2 107.0 89.6 99.9 85.5 1940 1941 1940 1941 Subgroups Subgroups Sept. June July Aug. Sept. Sept. June July Aaig. Sept. Farm Products: Metals and Metal Products: Grains 61.7 75.9 76.3 79.6 85 3 Agricultural implements 92.4 92.4 92.5 92.9 93.4 Livestock and Doultrv 72.4 93 0 98.9 99.0 101.1 Farm machinery 93.7 93.5 93.5 93,9 94.4 Other farm nroduots 63.2 76.6 79.9 82.0 86.0 Iron and steel 94.9 96.5 96.8 96 9 96.9 Foods' Motor vehicles _ ,_ _ _ 96.1 100.3 100.4 100.4 100.4 Dairy products 75.1 84.3 87.7 90.3 93.3 Nonferrous metals 80.7 84.5 84.7 84.4 84.4 Cereal products 76.0 79.8 80.3 81.5 85 8 Plumbing and heating _ 80.5 83.1 83.2 86.8 87.1 Fruits and vegetables 60.8 73.0 69.4 70.3 70.7 Building Materials: Meats 79.0 90 K 93.8 97.5 99 4 Brick and tile. 90.2 92.5 94.2 95.1 95.7 Other foods 62.6 79.5 81.6 84.4 86.5 Cement 90.6 91.9 92.1 92 1 92.2 Hides and Leather Products: Lumber* _ _ . _ 07.1 117. 6 122.3 127.5 129.1 Shoes 107.0 111.7 114.7 116.1 117,1 Paint and paint materials 84.1 90.3 91.6 93.3 94.7 TTides arid skins 84.0 112.4 112.5 112.2 112.1 Plumbing and heating 80.5 83.1 83.2 86 8 87.1 Leather 88.9 97 9 98.1 98.5 100 0 Structural steel 07.3 107.3 107.3 107,3 107.3 Other leather products 99.7 102.1 102.7 103.7 106 3 Other building materials 93.5 96.9 98.4 99.9 100.2 Textile Products: Chemicals and Allied Products: Clothing 85.6 91.6 93.9 95.1 96.1 Chemicals _ 84.8 87.2 87.3 87.5 88.2 Cotton goods 69.2 94.6 96.1 101.5 104.2 Drugs and Pharmaceuticals 96.0 99.9 100.0 100.1 104.4 Bfosierv and underwear 61 4 61 9 62 9 63 8 64.4 Fertilizer materials 68.1 69.9 74.0 75.3 76.6- Silk 42.8 51.2 51.4 52.0 Mixed fertilizers 74.2 73.8 77.0 77.1 77.1 Rayon 29.5 29.5 29.5 29.5 29.8 Oils and fats 39.9 80.6 83.7 87 3 91.3 Woolen and worsted goods... 84.2 94.6 96.5 98.2 101.4 Housefurnishing Goods: Other textile products 71.6 94.1 98.0 96.8 95.1 Furnishings.. 94.8 99.0 99.7 :00 7 102.1 Fuel and Lighting Materials: Furniture 81.8 87.0 88.9 89.9 92.2 Anthracite 79.6 81 0 82.2 83.3 84 5 Miscellaneous: Bituminous coal 96.8 103.7 104.9 106.3 107.2 Auto tires and tubes _. 58.8 58.8 58.8 60,8 60.8 Coke 109 6 122.2 122 2 122 2 122.2 Cattle feed 75.9 88.9 104.2 ]08.8 126.2 Electricity 73.5 67.2 93.2 98.0 98.8 ]00 7 101.7 Gas 84 8 81 0 80 8 78 3 Rubber, crude 39.8 45.6 46.0 47.8 47.1 Petroleum products. 48.9 59.9 60.9 61.4 61.7 Other miscelaneous 82.6 87.4 88.9 89.8 91.0 r Revised. 1 Revised series. Back figures.—FOT monthly and annual indexes of groups, see Annual Report for 1937 (table 86); for indexes of subgroups, see Annual Report for 1937 (table 87). 1182 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CURRENT STATISTICS FOR FEDERAL RESERVE CHART BOOK* ON BANK CREDIT, MONEY RATES, AND BUSINESS Chart 1941 Chart 1941 book book Se 2 p 4 t. O 1 ct. Oct. O 1 c 5 t. O 2 c 2 t. page July Aug. Sept. WEEKLY FIGURES i In billions of dollars MONTHLY FIGURES In billions of dollars RESERVES AND CURRENCY RESERVES AND CURRENCY Reserve Bank credit, total. 3 2.28 2.24 2.27 2.31 2.29 U. S. Gov't securities, Reserve Bank credit, total... 2, 7 2.30 2.28 2.30 by maturities, total._ 5 2.18 2.18 2.18 2.18 2.18 U. S. Gov't securities 7 2.18 2.18 2.18 Within 1 yr 5 .19 .19 .19 .19 .15 Bills discounted 7 (5) .01 .01 Within 5 yrs 5 .95 .95 .95 .95 .91 Gold stock 2 22.65 22.70 22.74 After 5 yrs 5 1.23 1.23 1.23 1.23 1.28 Money in circulation 2 9.67 9.84 10.06 Gold stock 3 22.75 22.76 22.77 22.78 22.79 Treasury cash 2 2.30 2.36 2.38 Treasury currency 3 3.19 3.20 3.20 3.21 3.21 Treasury deposits 2 .95 .83 .48 Money in circulation 3, 11 10.07 10.18 10.24 10.28 10.28 Reserve balances 2, 8 13.12 13.00 13.18 Treasury cash holdings 3 2.35 2.26 2.24 2.22 2.20 Required reserves 8 7.93 7.99 8.07 Treasury deposits 3 .38 .31 .30 .26 .98 Excess reserves 8 5.19 5.02 5.12 Nonmember deposits 3 1.86 1.92 1.88 1.92 1.80 Money in circulation, total... 10 9.73 10.00 10.16 Member bank reserves 3 13.27 13.24 13.29 13.32 12.75 Coins and bills under $50.. 10 6.99 7.24 7.38 Excess reserves—total • 9 5.20 P5. 19 P5. 22 P5.23 H.%7 Bills of $50 and over 10 2.74 2. 76 2.79 New York City 9 1.86 1.77 1.72 1.71 1.62 Chicago 9 .52 .57 .57 .52 .46 TREASURY FINANCE R C e o s u e n rv tr e y c b it a y n k b s a n • ks 9 9 1 . .8 9 5 7 P 1 . . 9 8 9 5 Pl 1 . .8 0 8 4 PI 1 . .9 08 1 P 1 . . 8 9 0 9 U. S D . i G re o c v t e o r b n l m ig e a n ti t o n d s e , b t t o : tal __ 19 48.97 50.37 50.79 MEMBER BANKS Bonds 19 35.34 35.56 35.79 Total, 101 cities: Notes 19 5.70 6.74 7.04 L B o a a la n n s c a e n s d d i u n e v t e o stments 16 29.12 29.13 29.13 29.39 29.62 B Sp il e l c s ial issues 1 1 9 9 6 1 . .6 3 0 2 6 1 . . 4 60 7 6 1 . . 6 3 6 0 domestic banks 16 9.55 9.67 9.61 9.89 9.46 Guaranteed obligations.„ 19 6.93 6.93 6.93 Demand deposits adjusted.. 16 24.39 24.28 24. 40 24.64 24.38 MONEY RATES, ETC. Per cent per annum Time deposits. 16 5.43 5.43 5.44 5.44 5.44 New York City: F. R. Bank discount Commercial loans 17 2.45 2.48 2.52 2.55 2. 54 rate, N. Y 23 1.00 1.00 1.00 Brokers' loans 17 .34 .35 .36 .40 .38 Treasury bills (new issues) _ _ 23 0.097 0.108 0.055 U. S. Gov't obligations 17 7.04 7.00 6.97 6.99 7.05 Treasury notes 2 23 0.37 0.33 0.34 100 cities outside New York: U. S. Gov't bonds 3 29 1.90 1.94 1.94 Commercial loans 17 3.94 3.97 3.99 4.02 4.01 Commercial paper _ 25 .50 50 .50 U. S. Gov't obligations 17 7.36 7.30 7.34 7.39 7.61 Corporate Aaa bonds 25, 29 2.74 0 74 2.75 Corporate Baa bonds 29 4.28 4.27 4.30 MONEY RATES, ETC. Per cent per annum In unit indicated Stock prices (1935-1939=100): T C C U T r o o r . e e r r S a p a p s . s o o u u r r G r a a r y y t t o e e v n b B A ' o i t l t l a a e s b a a s o ( b b 2 n n o o d _ e n n s w d d 3 s s i ssues) 21, 2 2 2 2 2 1 9 9 1 9 0 2 4 . 1 . . . 0 . 3 3 7 9 6 8 3 2 5 4 0 4 . 1 2 . . . 0 . 3 3 9 0 7 1 8 2 2 4 0 4 . 1 2 . 0 . . . 3 0 9 2 7 1 9 0 7 3 0 4 . 2 1 . . 0 . . 4 2 2 9 7 1 4 8 0 3 0 . 4 1 2 0 . . . . 8 4 6 2 7 7 1 7 8 3 Vo T I l R P u n o u a m d t b i u a l e l r l s i o * c t a r * u d o i a t f l i lit t y ra ding (mill. 3 3 3 3 1 1 1 1 8 8 7 8 3 4 3 1 . . . . 2 2 8 8 8 8 7 8 4 3 1 4 . . . . 3 2 0 4 8 8 8 7 4 3 1 2 . . . . 8 6 6 3 shares) 31 .76 .47 .60 Brokers' balances (mill, dol- In unit indicated lars) : Stock prices Credit extended customers 33 628 628 633 (1935-1939=100): Money borrowed 33 388 460 396 Total 31 83.4 82.7 81.4 79.6 79.5 Customers' free credit Industrial 31 84.8 84.0 82.5 80.6 80.6 balances 33 266 262 260 Railroad . 31 71.4 71.4 71.2 70.1 69.5 Public utility 31 80.7 80.1 79.5 78.4 77.6 BUSINESS CONDITIONS Volume of trading (mill, Wholesale prices: shares) 31 .62 .43 .55 .62 .59 All commodities (1926=100): Totals 35,65 88.8 90.3 91.8 BUSINESS CONDITIONS Farm products 35 85.8 87.4 91.0 Wholesale prices: Other 4. 35 89.7 90.8 91.6 All commodities (1926= 100): Industrial commodities Total 35 91.2 91.6 91.6 91.7 91.2 (Aug. 1939=100): Farm products 35 89.9 90.3 90.5 89.8 88.1 Total 37 113.0 114.4 115.6 Other 4 35 92.0 92.1 92.3 93.1 93.0 Finished 37 109.1 110.2 110.9 Basic commodities Raw and semifinished 37 120.8 122.9 125.0 (Aug. 1939=100), total 36 155.6 155. 9 154.2 149.6 152.2 Cost of living (1935-39=100): 12 foodstuffs 36 170.4 171.1 165.6 156.7 162.5 All items 39 105.3 ••106. 2 108.1 16 industrial Rent... 39 106.1 106. 3 106. 8 materials 36 145.2 145.2 146.0 144.3 144.8 Clothing... 39 104.8 '106. 9 110. 8 Steel production Food 39 106.7 108.0 110.8 (per cent of capacity) ___ 44 96.8 96.9 98.1 98.4 97.8 Automobile production e Estimated, P Preliminary. r Revised. (thous. cars) 44 '77.0 76.8 79.1 85.6 91.9 1 Figures for other than Wednesday dates are shown under the Frei T M gh o i t t s - a c c l e a l r l a lo n a e d ou in s g s (thous. cars 4 4 ): 5 5 9 3 1 9 9 9 . . 5 7 9 3 1 9 7 6 . . 5 9 9 3 0 9 3 2 . . 9 6 9 4 2 0 2 7 . . 9 5 9 4 1 0 3 5 . . 6 6 W 2 e T d a n x e - s e d x a e y m p in t c i l s u s d u e e d s o in n l t y h . e weekly period. Electric power production 3 Partially tax-exempt issues only. (mill. kw. hrs.) 46 3,233 3,290 3, 315 3,273 * Other than farm products and foods, Department store sales s Less than $5,000,000. (1935-1939=100) 46 148 169 130 131 130 e Estimate for October is shown on page 1170. F.H.A. home mortgages, * Current figures are for the revised edition of the Chart Book annew constr. (thous.) 47 4.86 4.20 4.47 3.78 4.16 nounced on p. 864 of the September BULLETIN. Copies of this Chart Book can be obtained at a price of 50 cents each. ** Incorrect figures were plotted for the following months: May 1939, 88.4; July 1940, 80.8. NOVEMBER 1941 1183 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CURRENT STATISTICS FOR FEDERAL RESERVE CHART BOOK*—Continued 1941 Chart Chart book book July Aug. Sept. page July Aug. Sept. MONTHLY FIGURES (cont.) In unit indicated MONTHLY FIGURES (cont.) 1926=100 BUSINESS CONDITIONS (cont.) INTERNATIONAL FINANCE Industrial production :i3 Wholesale prices: Total (1935-39=100) 41, 42 160 160 P162 Canada 65 91.1 91.8 Durable manufactures 41 75.6 75.3 P77. 4 Germany 65 P83.6 Iron and steel 42 20.4 20.3 P21. 1 Japan 65 139.0 139.4 139.4 Machinery, etc. 42 39.2 38.9 P40. 3 Sweden 65 137.4 Other durable 42 16.0 16.0 P16.0 Switzerland 65 130.2 P131.5 Nondurable manufactures 41 '64.7 65.0 P64. 9 United Kingdom 65 123.6 123.6 124.5 T Pa ex p t e i r l e a s n a d n p d r l i e n a t t i h n e g r 4 4 2 2 1 2 2 0 . . 8 4 2 1 0 2 . . 0 9 P P 1 1 2 9 . . 7 8 In cents per unit of Foods, liquors, and tobacco.. 42 17.6 18.3 P18.6 foreign currency Other nondurable _._ 42 14.0 13.7 P13.7 Foreign exchange rates: Minerals 41, 42 19.9 19.9 P19.7 Argentina (peso) 67 29. 77 29.77 29.77 New orders, shipments, and Canada (dollar) 67 88.27 89.13 inventories (Jan. 1939=100): Japan (yen) • 66 23. 44 New orders, total _ 43 212 196 P198 Switzerland (franc)7 66 Durable 43 295 257 P254 United Kingdom (pound). _ 67 403. 23 403.18 403. 27 Nondurable __ 43 159 157 P163 Shipments, total 43 185 188 P203 1941 Durable 43 222 216 P231 Nondurable 43 151 164 P178 Inventories, total __ 43 131 134 P137 May June July Durable '_ 43 141 146 P150 Nondurable 43 121 122 P124 Freight-car loadings ;i 2 In billions of dollars Total (1935-39 = 100)3 57 138 139 130 Coal 57 31.9 33.5 28.4 Increase in U. S. gold stocks Miscellaneous 57 76.8 77.2 74.2 Total 63 15.55 15.60 15.65 All other 57 29.1 28.7 27.9 Ne T t o c t a al p ital inflow: 62, 63 6.05 5.99 5.92 Inflow of foreign capital 62 3.97 3.89 3.83 1923-25=100 Merc R h e a t n u d rn is e o f e d x o p m or e t s s ti u c r p c l a u p s ital.. 6 6 3 2 4 1 . . 8 9 1 8 4 2. . 0 8 0 6 4 1 . . 9 9 4 9 Other factors _*__. 63 4.70 4.76 4.80 Factory employment 51, 53 130.5 132.8 135.6 Short-term foreign liabilities and Factory payrolls 51, 53 152.6 157.8 163.0 assets of banks: Average hourly earnings Due to foreigners 64 3.89 3.82 3.77 Av ( e c r e a n g ts e p h e o r u h rs o u w r) o rked r 51 74.4 74.5 N D e u t e d fr u o e m t o f o fo re r i e g ig n n er e s r s 6 6 4 4 3 . .5 3 3 6 3.4 34 8 3 . . 3 4 6 1 (hours per week) 51 40.3 41.0 Department store sales 3 59 115 134 116 Department store stocks 1 59 82 87 92 1941 In millions of dollars Jan.- Apr.- July- Mar. June Sept. Residential contracts awarded;i Total 47 191 224 175 Public 47 53 82 60 In billions of dollars Private, total ""__"! 47 139 142 116 QUARTERLY FIGURES 1- and 2-family dwellings 47 124 126 103 Con T st o ru ta c O l t i t o h n e r contracts aw '_ a " r _ d [ e d:4 4 4 7 9 5 2 7 1 1 0 2 5 6 2 2 0 1 2 6 7 P P 6 1 5 8 1 3 6 3 Cash C E C i x a a n c s s c h h e o s m s i o n u e o c t f o g a m o c n a d e s o h u o tg u o tg o o f U.S.Treas.: 1 1 1 8 8 8 2 3 1 . . 8 0 8 9 5 4 4 2 1 . . . 4 8 6 6 4 2 2 5 2 . . . 7 5 3 6 5 1 R O e th si e d r ential 4 4 9 9 358 416 Dom T e o s t ti a c l corporation security issues: 32 .78 .61 .73 No (m na i g ll r , ic p u e l r t s u o r n a s l ): employment * 39.27 39.43 P39.35 N R e e w fu _ n _ d __ in _ g 3 3 2 2 . .6 1 1 7 . . 1 4 9 2 . . 4 3 1 2 Total 50 13.13 13.11 P13. 05 T M r a a n d u e facturing and mining . . ' /-'."'. 5 5 0 0 6 4 . . 6 1 1 2 6 4 . . 6 1 9 8 P P4 6 . . 2 6 0 2 Per cent per annum T G C r o o a n v n s e s t r p r n u o m c rt t e a i n o t t n i o n and utiliti _ e s"" "" . 5 5 0 5 0 0 3 1 . . 2 6 6 7 3 1 . .6 3 7 0 P PI 3 . . 7 3 0 0 Bank T o r t a a t l e , s 1 o 9 n c i c t u ie s s t omers' loans: 25 2.58 2.55 2.60 Inco T S m O a o e t l h t a a p e r l r i a e y s m a e n n d t s w : a 1 ges "__._"_ 5 5 5 4 4 4 5 2 7 , , , 1 4 3 1 7 6 9 9 0 5 7 2 , , , 1 3 5 6 9 6 9 5 4 P P P 7 2 5 , , , 6 4 1 8 8 9 1 4 7 7 N 11 o e c S w t i h t o i e e u Y r s t o h N r e k o r n r C t a h i n e ty d r n W a e n s d t e E rn a s c t i e ti r e n s __ 2 2 2 7 7 7 2 2 3 . . . 0 2 5 6 5 3 2 1 3 . . . 9 5 2 5 8 3 1 2 3 . . . 9 2 6 8 9 2 Cash farm income: 904 1,121 P1,325 Total 55 340 571 701 p Preliminary. r Revised. Crops 55 549 530 1 Adjusted for seasonal variation. Livestock and products 55 15 20 2 In points in total index. Gov't payments 55 3 Estimate for October is shown on p. 1170. Exports and imports: 359 P455 4 Three-month moving average, adjusted for seasonal variation. Exports 61 278 P2S3 « Cumulated from Jan. 31, 1934. Imports. 61 81 P173 • No rate certified since July 25, 1941. Excess of exports 61 ^ No rate certified since June 14, 1941. * Current figures are for the revised edition of the Chart Book announced on p. 864 of the September BULLETIN. Copies of this Chart Book can be obtained at a price of 50 cents each. 1184 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CURRENT STATISTICS FORFEDERAL RESERVE CHART BOOK*—Continued [In billions of dollars] Chart 1938 1939 1940 1941 b p o a o g k e D 3 e 1 c. M 2 a 9 r. Ju 3 n 0 e O 2 ct. D 3 ec 0 . M 2 a 6 r. Ju 2 n 9 e D 3 ec 1 . Ap 4 r. Ju 3 n 0 e Se 2 p 4 t. CALL REPORT FIGURES ALL BANKS IN THE U. S. Total deposits and currency 12 59.12 59.11 60.95 62.87 64.10 64.88 66.96 70.75 72.43 74.15 Demand deposits adjusted 12 26.01 26.04 27.35 29.09 29.79 30.54 31.96 34.94 36.10 37.32 Time deposits 12 26 38 26.56 26.80 26.81 27.06 27.28 27.47 27.74 27.90 27.88 Currency outside banks 12 5.83 5.63 6.01 6.19 6.40 6.23 6.70 7.32 7.78 8.20 Loans and investments, total 13 48.87 48.93 49.62 49 95 50 88 51.14 51.34 54.19 56.15 57.94 Loans 13 21.30 21.15 21.32 21.63 22.17 22.19 22.34 23.74 24.32 25.31 Investments 13 27.57 27.78 28.30 28.32 28.71 28.95 29.00 30.45 31.83 32.63 MEMBER BANKS Investments, total1 18.86 19.05 19.46 19.61 19.98 20.22 20.48 21.81 23 10 23.93 P24. 42 U. S. Government obligations: Direct 14 10.88 10.69 10.95 10.89 11.18 11.31 11.60 12.34 13.50 14.24 Guaranteed 14 2.34 2.66 2.83 2.92 3.14 3. 11 3.12 3.49 3.49 3.84 State and local government obligations 14 2.45 2.56 2.55 2.76 2.69 2.91 2.89 3.01 3.21 2.98 P3. 16 Other domestic securities 14 3 01 2.96 2.94 (2) 2.77 (2) 2.70 2.80 (2) 2.72 Foreign securities 14 .18 .18 .19 .19 to .17 .17 .15 (2) Loans, total * _. . _ 13.21 13.05 13.14 13.47 13.96 13.94 13.97 15.32 15.88 16.73 P]7. 54 Commercial loans (incl. open-market paper) 15 3 5.89 5.96 5.99 6.57 6.72 7.52 8.55 S O t t r h e e e r t s lo e a c n u s r it ( y B r lo o a k n e s r 4 s' loans) 1 1 5 5 3 3 . . 7 9 9 6 . . 9 6 0 7 . . 9 5 1 6 .8 6 8 1 . . 3 8 2 0 . . 4 8 7 3 . . 7 4 9 2 ( (* 2) ) Real estate loans 15 2.72 2.75 2.83 (2) 2.96 (2) 3.07 3.23 (2) 3.37 (2) All other loans ' 5 2 85 2.77 2.85 (3) 2 94 (2) 3.06 3.27 (2) 3.61 (2) SEMI-ANNUAL FIGURES OWNERSHIP OF U. S. GOVERNMENT OBLIGATIONS Total direct and guaranteed obligations outstanding 1 43.89 45.34 47.07 47.87 50.36 54.75 Amount held by: _ __„ U.S. Government agencies and trust funds: Public issues 20 2.20 2.14 2.32 2.29 2.25 2.36 Special issues 20 3.16 3.77 4 23 4.77 5.37 6.12 Federal Reserve Banks 20 2 56 2.55 2.48 2.47 2.18 2.18 Commercial banks 20 15.07 15 70 16 30 16.55 17.76 r20 10 VTutual savings banks 20 2.88 3.04 3 10 3 11 3 22 3 43 [nsurance companies 20 6 5.60 5.80 6 6.00 6.10 6 6. 50 6 6.60 Other investors 20 H2. 40 12.30 612. 60 12.60 613.10 614 00 p Preliminary. r Revised. l Series not shown in Chart Book. 2 Figures available for June and December dates only. 3 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. 4 Includes since December 31,1938, only loans made for the purpose of purchasing or carrying securities; loans on securities made for other purposes are included in commercial loans and in all other loans. 5 Includes loans to banks and other loans under new classification beginning December 31, 1938. « Partly estimated. * Current figures are for the revised edition of the Chart Book announced on p. 864 of the September BULLETIN. Copies of this chart book can be obtained at a price of 50 cents each. OCTOBER CROP REPORT, BY FEDERAL RESERVE DISTRICTS [Based on estimates of the Department of Agriculture, by States, as of October 1, 1941] [In thousands of units] Cotton Corn Winter wheat Spring wheat Federal Reserve district Produc- Estimate Produc- Estimate Produc- Estimate Produc- Estimate tion Oct. 1, tion Oct. 1, tion Oct. 1, tion Oct. 1, 1940 1941 1940 1941 1940 1941 1940 1941 Bales Bales Bushels Bushels Bushels Bushels Bushels Bushels Boston 7,366 7,758 88 68 New York 25, 393 29, 017 8,786 7,327 92 90 Philadelphia _ _ __ 47, 863 50, 490 16, 901 16, 580 158 150 Cleveland 160, 404 199,112 47,351 55,298 77 59 Richmond 1,730 953 135, 014 131, 752 26, 663 27, 251 Atlanta 2,304 1,991 178, 019 182, 430 6,508 6,955 Chicago 965, 662 1, 021, 503 63, 298 61, 072 1,921 1,776 St. Louis i 3, 277 2 3, 554 326,128 341, 318 62, 531 52,978 77 38 Minneapolis 265, 502 286, 786 24,756 36, 576 187, 516 241,101 Kansas City__ . _ _ _ ..___. 666 589 225, 245 281, 758 232, 606 281, 793 6,522 7,403 Dallas. 3,869 3,315 105, 113 85, 292 29, 957 36,105 105 148 San Francisco _ __ 720 659 7,491 8,286 69,794 103,031 30,991 25, 395 Total 12, 566 11,061 2, 449, 200 2, 625, 502 589,151 684, 966 227, 547 276,228 Oits Tame hay Tobacco White potatoes Federal Reserve district Produc- Estimate Produc- Estimate Produc- Estimate Produc- Estimate tion Oct. 1, tion Oct. 1, tion Oct. 1, tion Oct. 1, 1940 1941 1940 1941 1940 1941 1940 1941 Bushels Bushels Tons Tons Pounds Pounds Bushels Bushels Boston 7,047 6,863 3,485 3,152 32, 923 35,021 54, 600 55,114 New York 31, 264 26, 979 5,858 4,432 1,983 2,353 32,153 32,041 Philadelphia - ._ 19, 499 19,647 2,359 2,080 49,590 52, 245 24, 843 23,856 Cleveland 57, 472 61, 774 5,978 5,207 123,150 106, 042 20,132 19, 874 Richmond 21, 064 23,152 4,099 3,865 743, 939 645, 658 28,489 21,952 Atlanta ___ _. 15, 205 19,584 3,259 3,391 178, 516 139,571 15, 337 15,005 Chicago 525, 658 465, 436 21, 291 19,743 36, 785 31,897 41,618 42, 042 St. Louis . 60,057 60, 600 8,210 8,234 277, 570 234, 630 13,817 13,017 Minneapolis 302, 514 251,869 10, 550 12, 062 3,034 2,689 52, 330 43,966 Kansas City 127, 627 132, 999 7,302 8,856 4,476 4,290 35, 334 31,022 Dallas 40, 507 39,314 1, 781 1,771 3,949 6,877 San Francisco 27, 714 30, 626 12,140 12. 940 75,120 69, 767 Total 1, 235, 628 1,138, 843 86, 312 85, 733 1, 451, 966 1, 254, 396 397, 722 374, 533 1 Includes 18,000 bales grown in miscellaneous territory. 2 Includes 19,000 bales grown in miscellaneous territory. NOVEMBER 1941 1185 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MEMBER BANK EARNINGS NATIONAL AND STATE MEMBER BANKS, BY HALF-YEAR PERIODS, JULY 1, 1940—JUNE 30, 1941 [Figures for national banks were compiled by the Comptroller of the Currency from reports submitted by national banks. Amounts in thousands of dollars.] All member banks National member banks State member banks Item Second First Second First Second First alf of 1940half of 1941 half of 1940 alf of 1941 alf of 1940 alf of 1941 Earnings—total 673,538 680, 733 437, 479 445, 519 236, 059 235, 214 Interest and discount on loans 305, 350 318,468 209,971 219, 717 95,379 98,751 Interest and dividends on securities 216, 595 215,024 141,657 141, 416 74,938 73, 608 Collection charges, commissions, fees, etc.- 16,966 17,885 11,773 12,373 5,193 5,512 Foreign department 5,644 4,636 3,569 3,000 2, 075 1,636 Trust department 48, 703 43, 829 17, 573 15, 233 31,130 28, 596 Service charges on deposit accounts 30, 095 31, 704 20, 610 21, 704 9,485 10,000 Rent received 40, 766 40, 702 25, 877 26,014 14,889 14, 688 Other current earnings 9,419 8,485 6,449 6,062 2,970 2,423 Expenses—total 465, 836 474, 416 302, 390 307, 957 163, 446 166, 459 Salaries—officers 79, 259 78,978 52,943 52, 394 26, 316 26, 584 Salaries and wages—others 125, 471 124,909 77,630 77, 252 47,841 47, 657 rectors' and committee members' fees,. 3,985 3,858 2,756 2,653 1,229 1,205 terest on time deposits 72, 738 70, 564 51, 786 50, 245 20,952 20, 319 terest on borrowed money 69 44 43 27 26 17 eal estate taxes 17, 640 16,077 11,131 10, 096 6,509 5, 981 ther taxes 34, 033 40, 692 22,754 27, 220 11, 279 13,472 her current expenses 132, 641 139, 294 83, 347 88, 070 49, 294 51, 224 current earnings.. 207,702 206,317 135, 089 137, 562 72, 613 68, 755 ecoveries, profits on securities, etc.—total- 159,599 129,017 102,253 86, 009 57, 346 43, 008 Recoveries on loans 29,093 24,985 19, 473 18, 314 9,620 6,671 Recoveries on securities 36,428 30,458 23,372 22, 506 13, 056 7,952 Profits on securities sold 81, 426 62,182 51, 751 38, 623 29, 675 23, 559 Allother 12, 652 11, 392 7,657 6,566 4,995 4,826 Losses and depreciation—total 180, 364 136, 779 109,197 91,106 71,167 45, 673 On loans 43, 380 35, 973 28, 559 23, 216 14, 821 12, 757 On securities 84,153 61,634 52, 930 44,071 31, 223 17, 563 On banking house and equipment. 27, 412 19, 666 15, 845 14, 502 11, 567 5,164 Allother 25, 419 19, 506 11, 863 9,317 13, 556 10,189 Net profits 186, 937 198,555 128,145 132, 465 58, 792 66, 090 Cash dividends declared- totaL 110, 446 100, 993 71,198 63,143 39,248 37, 850 On preferred stock i__ 6,566 6,291 4,355 4,002 2,211 2,289 On common stock 103, 880 94, 702 66, 843 59,141 37, 037 35, 561 Loans 2 14, 644, 684 15,976,109 9, 580, 302 10, 434, 743 5, 064, 382 5, 541, 366 Securities 2 21,143,852 22, 946, 428 13, 262, 679 14, 376,126 7, 881,173 8, 570, 302 Real estate assets 2_. 1, 271, 032 1, 245, 348 771,949 758, 482 499,083 486, 866 Cash assets2 22,896, 425 22, 798,888 14, 477, 865 14, 605, 679 8,418, 560 8,193, 209 Total assets 2-. 60,252,011 63, 534,245 38,238, 435 40, 333,971 22,013, 576 23,200,274 Time deposits 2 12,194, 459 12,415,031 8, 376, 892 8, 464, 601 3, 817, 567 3, 950,430 Total deposits 2 54, 079, 364 57, 254,984 34, 400, 493 36, 425, 635 19, 678,871 20,829, 349 Total capital accounts 2 5, 652, 634 5, 750, 280 3,498, 351 3, 560, 674 2,154, 283 2,189, 606 Number of officers at end of period 35,369 36,085 26,109 26, 494 9,260 9,591 163, 783 173,231 103,676 110,152 60,107 63,079 Number of employees at end of period- 6,486 6,556 5,144 5,130 1,342 1,426 Number of banks at end of period Ratios to total capital accounts:4 Net current earnings 7.3 7.2 7.7 7. 7 6.7 6.3 Net profits 6.6 6.9 7 5 7.4 5.5 6.0 Cash dividends declared-__ 3.9 3.5 4.'l 3.5 3.6 3.5 Ratios to loans:4 Interest and discount on loans_. 4.2 4.0 4.4 4.2 3.8 3.6 Recoveries on loans .4 _ t .2 Losses on loans .6 . 5 !6 .6 .5 Ratios to securities:4 Interest and dividends on securities 2.0 1.9 2.] 2.0 1.9 1.7 P R r e o c f o it v s e r o i n es s o ec n u s r e it c i u es ri t s i o e l s d !8 .5 " r . .5 2 Losses on securities .8 .5 .8 .6 .4 Other ratios: Interest on time deposits to time deposits 4 1.2 1.1 1.2 1.2 1.1 1.0 Time deposits to total deposits 22.5 21.7 24.4 23.2 19.4 19.0 Total capital accounts to loans, securities, and real estate assets. 15.3 14.3 14.8 13.9 16.0 15.0 Loans to total assets 24.3 25.1 25.1 25.9 23.0 23.9 Securities to total assets 35.1 36.1 34.7 35.6 35.8 36.9 1 Includes interest on capital notes and debentures. 2 For the second half of 1940 these are averages of figures reported on June 29,1940 and Dec. 31, 1940; for the first half of 1941 they are averages of figures reported on Dec. 31,1940, Apr. 4,1941, and June 30, 1941. 3 Represents the aggregate book value of capital stock, capital notes and debentures, surplus, undivided profits, reserves for contingencies, and other capital reserves. 4 Annual basis. Back Figures.—See BULLETIN for November 1940, pp. 1181 and 1182. 1186 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDUSTRIAL PRODUCTION—MAJOR DIVISIONS EXPRESSED AS POINTS IN TOTAL INDEX COMPILED WITH 1923 WEIGHTS, 1919-1929 [Adjusted for seasonal variation, 1935-39 average for total index=100] In- Dur- Non- In- Dur- Nondustrial able durable Min- dustrial able durable Min- Year and month produc- manu- manu- erals Year snd month produc- manu- manu- erals tion factures factures tion factures factures 1919 . 72 29.1 31.7 10.8 1924—January 86 35.6 35.9 14.3 1920 75 32 2 30.6 12.5 February __ 88 36.8 35.9 14.9 1921 58 18.5 29.1 10.0 March 86 36.1 35.9 14.0 1922 73 28 0 34 3 10 7 April 83 34.7 35.5 13.0 1923 88 36.0 37.0 14.8 May. . _ _ 80 31.8 34.9 13.0 1924 . 82 33.0 35.6 13.5 June 76 29.6 33.7 13.0 1925 90 37 2 39 3 13.9 July 75 28.8 33.4 13.0 1926 96 39.6 40.9 15.1 August _ 78 30.5 34.2 12.8 1927 . 95 37.3 42.8 15.1 September 81 31.6 35.5 13.7 1928 99 40 5 43 8 14.9 October 82 32.2 36.6 13.6 1929 110 46.0 47.6 16.2 November 84 32.8 37.5 13.4 December 86 34.7 38.1 13.7 1 g 19—January 71 30.9 28.6 11.1 February _ _. 68 30.5 27.5 9.8 1925—January __ 89 36.5 38.4 14.2 March 66 28 6 27 3 9 4 February 89 36.4 38.9 13.8 April 67 27.2 29.5 10.0 March . .. 89 36.6 38.8 13.5 May 67 25.1 31.4 10.4 April _ 90 36.3 39.1 14.2 June 72 28 5 32 2 10 7 May 90 36.1 38.9 14.6 July 75 30.9 33.1 11.4 June . . ... 89 36.2 38.4 14.5 August _ . 77 32.7 33.0 11.1 July _ 91 36.6 39.4 14.7 September 75 29.1 34.1 12 0 August 90 35.2 39.4 15.0 October 74 27.7 34.4 12.3 September . _ 88 36.4 38.9 13.0 November. 74 29.2 35.0 8.9 October 92 39.2 39.4 12.9 December 74 29 0 34 3 10 8 November 94 40.5 40.2 13.2 December .. 95 41.4 40.7 13.0 1920—January 82 33.8 35.6 12.1 February 82 34.6 34.8 11.9 1926—January . _. 93 39.5 40.7 12.8 March.. 81 33.9 34.3 12.2 February 93 39.4 40.5 13.4 April 76 30 3 33.7 11 5 March 95 39.4 40.3 14.8 May _.. 78 32.1 33.9 11.9 April . . 94 39.2 40.1 14.9 June 78 33 8 32 2 12 5 May 94 39.3 39.7 14 5 July 76 33.1 30.8 12.4 June 95 39.7 40.2 15.0 August 77 34.3 29.9 12.8 July 95 39.8 40.2 15.2 September 74 33 6 28 9 11 9 August 96 40.1 41.0 15 3 October 72 32.1 27.0 12.8 September - 98 40.4 42.0 15.5 November 66 28.7 24.2 13.2 October. 98 39.9 42.0 15.8 December 62 26 7 22 4 13 3 November 97 39.2 41.8 16 4 December 97 38.4 42.1 16.4 1921—January 58 22.4 24.1 11.5 February 57 20.8 25.3 10.9 1927—January 96 38.1 42.1 16.0 March 55 18 3 26 6 10 1 February 97 38 7 42 2 16 3 April . 55 17.3 27.8 10.2 March 99 38.9 42.6 17.1 May 57 17.6 28.6 10.4 April 96 38.5 42.6 15.0 June 56 16 5 29 7 9 9 May 97 38.5 43 1 15 2 July.. . 56 15.6 30.4 9.5 June 96 37.5 44.0 14.9 August 58 17.3 30.6 9.7 July 95 36.8 44.0 14.3 September 58 17.4 31.1 9.4 August 95 36.8 43.5 15.1 October . 61 19.4 31.7 10.0 September 94 36.0 43.0 14.7 November 61 19 8 31 6 9 6 October 92 35 0 42 5 14 5 December.. .. . 61 19.0 31.5 9.7 November. __ 92 34.9 42.5 14.4 December 93 36.1 42.3 14.2 1922—January. 63 20.1 31.9 10.9 February 65 21.7 31.8 12.0 1928—January 94 37.6 42.3 14.3 March _ . . . 69 23.8 32.2 12.9 February 95 38.2 42.8 14.2 April 67 27.1 31.4 7.5 M arch 96 38.3 42.6 14.9 May 70 28 7 33 1 7 6 April 95 38 7 42 3 14 5 June 74 30 3 34 4 8 3 May 97 38 8 43 2 14 9 July 74 30.8 34.4 8.0 June . .... 98 39.8 43.2 14.5 August 72 27.3 35.3 8.8 July 99 40.7 43.4 14.5 September 76 28.6 35.4 11.5 August 101 41.6 44.2 15.0 October. 80 31.5 36.1 12.7 September 101 42.1 44.3 15.1 November 84 32 4 37 8 13 3 October 103 43 1 44 9 15 5 December.. . ._ _ . 86 33.9 38.0 14.1 November 105 43.9 45. 7 15.9 December 107 45.2 46.4 15.5 1923—January 85 34.1 36.6 14.0 February . 86 34.3 37.3 14.1 1929—January 108 45. 5 46.4 16.3 March 89 35.7 38.3 14.6 February 108 44.9 46.5 16.6 April __ .. _ 91 36.7 38.4 15.6 March 108 45.9 46.8 15.6 May 92 37.7 38.8 15.2 April 110 46.5 47.3 16.3 June 91 37.4 38.3 15.2 May 112 47.3 48.2 16.2 July . 90 37.2 37.3 15.5 June 113 48.6 48.6 16.1 August 88 36.3 36.7 15.4 July 114 49.1 48.5 16.5 September 87 36.2 36.3 14.1 August 114 43. 7 48.5 16.4 October 86 35.7 35.7 14.8 September 112 47.1 48.5 16.7 November . 86 35 6 35 7 14 8 October 110 45 6 48 5 16 3 December 84 35.3 35.2 13.8 November 105 42.3 47.0 15.6 December 100 38.6 45.7 16.0 NOVEMBER 1941 1187 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Industrial Production—Major Divisions Expressed as Points in Total Index—Continued COMPILED WITH 1937 WEIGHTS, 1929-1941 [Adjusted for seasonal variation, 1935-39 average for total index=100] In- Dur- Non- In- Dur- Non- Year and month d p u ro s d tr u i c a - l m a a b n le u- d m ur a a n b u l - e M era in ls - Year and month d p u ro s d tr u i c a - l m a a b n le u- d m ur a a n b u l - e M era in ls tion factures factures tion factures factures 1929 110 50.2 43.4 16.3 1935—January 83 28.9 41 3 12 8 1930 91 37 3 39.4 14 1 February 85 30 3 41 5 12 9 1931 ... 75 25.6 37.2 12.1 March 84 29 8 41 2 13 3 1932 58 15 6 32 6 10 1 April 82 29 6 40 8 12 1 1933 69 20.3 37.1 11 6 May 83 29 1 40 8 12 7 1934 ... 75 24.7 38.2 12.1 June 84 28 6 41 4 13 8 1935 87 31.6 42.3 13.1 July- 84 29.7 41 9 12 5 1936 103 41.0 47.1 15.1 August 87 32.3 42.1 12.6 1937 ... 113 46.2 49.9 17.0 September 89 33 5 43 1 12 9 1938 89 29 6 44 3 14 7 October 92 34 7 43 9 13 7 1939 108 41.2 50.7 16.2 November 94 35 7 44 5 13 8 1940 _ -_ 123 52.2 53.0 17.8 December 95 36.3 44.9 14.2 1929—January 108 49.5 42.2 16.3 1936—January 94 35.4 44.6 14.4 February 108 48.8 42.3 16.6 February 92 34.0 43 2 14 8 March __ __ 108 49.9 42.6 15.7 March 93 34.9 44.0 13.9 April 110 50.7 43.0 16.5 April 98 38 5 45 2 14 8 May 112 51.7 43.8 16.3 May.. 100 40.3 45 6 14 6 June _ _ 113 53.1 44.2 16.1 June 103 41.8 46.2 14.7 July 115 53.8 44.1 16.7 July. 104 42 5 46 9 15 0 August 114 53.2 44.1 16.5 August 106 42.8 48 2 15 0 September 112 51.3 44.2 16.7 September. 108 43.8 48.6 15.2 October 110 49.7 44.3 16.3 October 110 44 8 49 4 15 5 November 105 45.9 43.1 15.7 November 113 45.8 50.8 16.2 December. ... ... 100 41.9 42.0 16.0 December 116 47.5 52.2 16.3 1930—January 100 42.9 41.8 15.6 1937—January 116 47.5 52.3 16.0 February .- 100 43.0 41.4 15.2 February 118 48.5 52 5 16 5 March 98 42.4 40.8 14.3 March 120 49.1 52.7 18.2 April 98 41.7 41.2 14.6 April 120 50 0 53 5 16 7 May. . 96 40.6 40.4 14.6 May.. 121 50.5 53 5 16 9 June 93 38.8 39.8 14.4 June 119 49 0 53 0 17 4 July 89 36.0 38.7 14.2 July. . 120 50.9 51 8 17 2 August ... 86 34.6 37.9 13.8 August 119 51.2 50.3 17.5 September 85 33.7 37.8 13.5 September 115 48.9 48.7 17.6 October 83 31.9 37.6 13.5 October 107 43.2 46.4 17.2 November __ 81 30.2 37.3 13.3 November. .. 96 36.2 43.1 16.7 December 79 29.1 36.9 12.9 December 87 30.4 40 8 16 3 1931—January 78 28.9 36.9 12.5 1938—January 85 28.3 41.3 15.7 February 79 29.2 37.6 12.1 February 84 27.6 42.0 14.8 March 80 29.8 38.1 12.6 March 84 27 2 42 1 14 8 April 80 29.3 38.4 12.7 April.. 82 26.4 41.0 14 4 May 80 28.3 38.9 12.4 May 81 25 7 41 3 13 6 June 77 26.4 38.5 12.6 June.. 81 25.1 42 0 14 0 July 76 25.3 38.5 12.5 July . 86 26.9 44.6 14.3 August 73 23.7 38.2 11.6 August 90 29 5 46 2 14 7 September 70 21.9 37.0 11.3 September 93 31.6 46.7 14.8 October 68 20.8 35.3 11.9 October.. 96 33.6 47.0 15.0 November 67 20.5 34.5 12.0 November. 100 36.2 48.1 15 5 December 66 20.4 34.3 11.8 December 101 36.6 48 7 15 5 1932—January 64 19.4 34.4 10.6 1939—January... 101 36.8 48.8 15.7 February 63 18.2 34.2 10.5 February 101 36.8 48 6 15 4 March 62 17.0 33.6 11.2 March 101 36.3 48.7 15.8 April 58 16.2 31.4 10.5 April _ 97 35.3 48 3 13 9 May 56 15.8 30.7 9.6 May 98 35.1 48.6 14.7 June. 54 15.1 30.0 9.1 June.. . 103 37.5 49 6 15 8 July 53 13.7 29.6 9.3 July 105 38.8 49.6 16.3 August 54 13.1 31.5 9.6 August 106 41.0 50 5 14 0 September 58 14.0 33.7 10.2 September 114 44.8 52.0 17.3 October 60 14.5 34.6 10.5 October. .. 121 49.1 54 0 18.0 November 59 14.9 34.1 10.5 November 124 50 9 55 0 18 3 December . 58 14.8 33.4 9.9 December. . .. 125 53.4 55.0 17.4 1933—January 58 14.5 33.2 10.0 1940—January 122 51.0 52.9 18.0 February 57 14.0 32.9 10.5 February 116 46.9 51.6 17.4 March 54 12.3 31.1 10.8 March 113 44 8 50 0 17 8 April 58 14.6 33.5 9.9 April.. _. 112 44.1 50.2 18.1 May 68 18.3 38. 2 11.5 May 116 46.8 51.7 17.8 June 78 23 5 42.6 12.1 June 122 50 4 53 4 18 0 July . ... 85 28.4 44.1 12.7 July . 122 51.5 52.7 18.1 August 82 27.5 41.0 13.2 August 124 54.3 52.6 17.4 September 77 25.6 39.4 12.4 September 127 57.1 52.4 17.7 October 73 24.1 37.3 11.6 October 130 58.7 54 6 17 2 November 69 20.6 36.7 11.6 November 134 59.7 56.3 17.9 December 70 21.5 36.4 11.6 December 139 62.4 58.2 18.0 1934—January 72 22.4 37.4 11.9 1941—January 140 64.9 57.4 18.0 February 75 24.8 38.0 12.1 February 144 66.8 58.8 17.9 March 79 26.8 39.0 13 0 March 147 68.2 59 7 19 0 April 79 27.7 39.1 12.2 April 144 68.4 61.2 14.5 May 80 28.8 38.8 12.3 May 154 72.0 63.2 19.1 June 79 28.7 37 6 12 2 June 159 74 0 65 1 20 1 July . .. 73 23.6 37.5 12.1 July 160 75.6 64.7 19.9 August 73 22.7 37.9 11.9 August 160 75.3 65.0 19.9 September 70 21.9 35.7 11.9 September 160 76.6 64.2 19.7 October 71 21.6 38.0 11.8 October November 72 21.6 38.6 11.8 November December . ._ 77 24.5 40.1 12.2 December 1188 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDUSTRIAL PRODUCTION—SELECTED GROUPINGS EXPRESSED AS POINTS IN TOTAL INDEX [Adjusted for seasonal variation, 1935-39 average for total index = 100] Machinery Foods, Iron and and trans- Other Textiles Paper and liquors, Other Year and month Total portation durable and leather printing and non- Minerals equipment tobacco durable 1935—Jan.... 13.0 7.0 12.7 8.1 12.1 8.5 12.8 Feb.- 9.0 13.7 7.6 12.5 8.3 12.2 8.5 12.9 Mar.— 8.3 13.9 7.5 12.2 8.3 12.1 8.5 13.3 ApriL. 7.9 13.9 7. 7 11.9 8.2 12.3 8.3 12.1 May— 7.9 13.8 7.4 12.0 8.2 12.3 8.4 12.7 June_- 7.5 13.5 7.6 12.2 8.3 12.4 8.5 13.8 July_- 7.8 13.8 8.1 12.4 8.3 12.6 12.5 Aug.— 9.3 14.5 12.6 8.3 12.5 12.6 Sept— 9.4 15.2 13.0 8.6 12.6 8.9 12.9 Oct.— 9.9 15.5 9.3 13.4 8.7 12.8 9.0 13.7 Nov. 10.5 15.8 9.4 13.8 8.8 12.8 9.1 13.8 Dec— 10.5 16.0 9.7 13.7 9.0 12.9 14.2 1936—Jan.__. 9.8 16.2 9.5 13.5 8.7 13.2 14.4 Feb.-_ 9.6 15.3 9.1 12.9 8.6 12.9 8.8 14.8 Mar.- 9.7 15.9 9.4 12.7 8.8 13.4 9.1 13.9 April.. 11.7 16.9 9.9 13.3 9.2 13.4 9.3 14.8 M ay- 100 12.2 17.7 10.4 13.1 9.3 13.6 9.6 14.6 June-. 103 13.1 18.1 10.6 13.3 9.3 13.8 9.8 14.7 July- 104 13.2 18.6 10.7 13.9 9.4 13.7 9.9 15.0 Aug... 106 13.5 18.3 11.1 14.4 9.6 14.3 10.0 15.0 Sept._. 108 13.9 18.5 11.4 14.4 9.7 14.4 10.1 15.2 Oct.-. 110 14.3 18.9 11.6 14.7 9.9 14.7 10.2 15.5 Nov.-. 113 14.5 19.6 11.7 15.2 10.5 14.7 10.4 16.2 Dec— 116 14.9 20.7 11.9 16.2 10.7 14.7 10.6 16 3 1937—Jan.— 116 15.3 20.2 12.0 16.3 10.7 14.5 10.7 16.0 Feb.-_ 118 15.2 20.9 12.5 16.1 10.7 14.8 11.0 16.5 Mar.-. 120 15.3 21.3 12.6 16.4 10.6 14.8 11.0 18.2 ApriL 120 15.6 21.5 12.9 16.5 11.0 14.9 11.1 16.7 May- 121 15.9 21.7 12.9 16.6 11.1 14.6 11.2 16.9 June-_ 119 14.1 22.2 12.8 16.3 11.0 14.4 11.2 17.4 July-. 120 15.8 22.4 12.7 14.9 10.9 14.9 11.1 17.2 Aug.— 119 16.0 22.8 12.4 14.1 10.7 14.7 10.9 17.5 Sept._. 115 15.1 22.0 11.9 12.9 10.4 14.3 11.0 17.6 Oct.-.. 107 11.2 21.1 10.9 11.5 9.8 14.4 10.7 17.2 Nov... 96 7.4 18.9 9.9 9.9 9.0 14.1 10.1 16.7 Dec... 87 5.3 16.4 8.7 8.9 8.7 13.7 9.5 16.3 1938—Jan— 85 5.8 14.3 8.1 9.2 8.9 14.0 9.2 15.7 Feb.- 6.0 13.5 8.1 9.8 9.0 14.1 9.1 14.8 Mar- 6.0 12.8 8.4 10.1 9.0 13.9 9.2 14.8 Apr._. 82 6.0 12.3 8.0 9.7 8.8 13.8 8.8 14.4 May.. 81 5.6 12.0 8.1 10.1 8.6 13.7 8.9 13.6 June.. 81 5.4 11.7 8.1 10.7 8.6 14.0 8.7 14.0 July- 86 6.6 11.7 8.5 12.2 9.3 14.1 8.9 14.3 Aug... 90 8.1 12.2 9.2 13.4 9.5 14.0 9.3 14.7 Sept.. 93 9.0 12.9 9.7 13.4 9.5 14.2 9.6 14.8 Oct.__ 96 9.9 13.6 10.1 13.3 9.8 14.2 9.7 15.0 Nov._ 100 11.4 14.6 10.2 13.9 9.9 14.5 9.8 15.5 Dec.-. 101 10.6 15.5 10.6 14.3 9.7 14.6 10.0 15.5 1939—Jan.__. 101 10.4 15.7 10.6 14.4 14.6 10.0 15.7 Feb..- 101 10.4 15.8 10.6 14.4 14.4 10.0 15.4 Mar... 101 10.2 15.7 10.4 14.1 9.7 14.7 10.1 15.8 April. 97 9.3 15.7 10.3 13.8 14.6 10.1 13.9 May— 98 9.0 15.9 10.2 14.0 14.9 10.0 14.7 June_- 103 10.5 16.5 10.5 14.5 9.8 15.0 10.2 15.8 July— 105 11.1 16.9 10.9 15.0 9.8 14.5 10.3 16.3 Aug._- 106 12.5 17.4 11.2 14.8 10.3 15.2 10.2 14.0 Sept._. 114 14.7 18.2 11.3 15.1 11.0 15.2 10.8 17.3 Oct.-. 121 17.4 18.9 12.8 15.7 11.7 15.3 11.3 18.0 Nov._. 124 17.9 19.7 13.3 16.8 11.7 15.2 11.3 18.3 Dec— 125 17.8 21.2 13.5 16.4 11.9 15.4 11.3 17.4 1940—Jan.— 122 16.6 21.6 12.8 15.5 10.8 15.2 11.3 18.0 Feb.- 116 13.6 21.1 12.1 14.4 10.5 15.5 11.2 17.4 Mar... 113 11.7 21.2 11.9 13.3 10.3 15.3 11.0 17.8 ApriL. 112 11.6 20.9 11.6 13.1 10.6 15.4 11.1 18.1 May__ 116 13.9 21.2 11.7 13.7 11.4 15.4 11.3 17.8 June— 122 16.7 22.0 11.8 14.2 11.9 16.1 11.3 18.0 July... 122 17.4 22.2 11.9 14.8 11.4 15.3 11.2 18.1 Aug.__ 124 17.9 24.0 12.4 14.9 11.0 15.5 11.2 17.4 Sept._. 127 18.6 25.4 13.1 15.1 10.7 15.2 11.3 17.7 Oct.--. 130 18.9 26.3 13.4 16.0 10.9 16.2 11.5 17.2 Nov.- 134 18.8 27.1 13.8 17.6 11.0 16.0 11.7 17.9 Dec.-_ 139 19.1 28.7 14.5 18.2 11.3 16.5 12.2 18.0 1941—Jan.... 140 19.7 29.9 15.3 17.9 11.2 16.1 12.2 18.0 Feb.- 144 19.7 31.6 15.5 18.6 11.3 16.5 12.5 17.9 Mar._. 147 20.2 32.8 15.1 19.0 11.6 16.6 12.5 19.0 ApriL. 144 19.9 33.2 15.2 19.5 11.8 16.9 13.0 14.5 May— 154 20.2 36.5 15.4 20.4 12.3 17.1 13.4 19.1 June_. 159 20.2 38.1 15.6 20.4 12.7 17.6 14.3 20.1 July— 160 20.4 39.2 16.0 20.4 12.8 17.6 14.0 19.9 Aug.— 160 20.3 38.9 16.0 20.0 12.9 18.3 13.7 19.9 Sept... *>160 21.1 *>39. 6 P16.0 P19.8 P12.7 P18.1 P13. 7 Oct.— Nov.- Dec._- NOVEMBER 1941 1189 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTERNATIONAL FINANCIAL STATISTICS PAGE Gold reserves of central banks and governments. . 1191 Gold production 1192 Gold movements ... 1192 International capital transactions of the United States. . 1193-1197 Central banks 1198-1201 Money rates in foreign countries. 1202 Commercial banks 1203 Foreign exchanges rates. . 1204 Price movements: Wholesale prices . 1205 Retail food prices and cost of living. . 1206 Security prices. . 1206 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. 1190 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS [In millions of dollars] End of month U S n ta i t t e e s d g t A i e n r n a - - g B iu el m - Brazil I B n is r d h i i t a - g B a u ri l a - C a a d n a - Chile o C m o b - ia C v s z a l e k o c - i h a o- m D a e r n k - Egypt France m G a e n r- y Greece 1936—Dec.... 11, 258 501 632 275 188 2,995 27 26 1937—Dec... 12,760 469 597 274 184 2,564 24 1938—Dec... 14,512 431 581 274 192 2,430 27 1939—Dec... 17,644 466 274 214 2,709 28 1940—Sept... 21,244 2 385 274 2,000 28 Oct.... 21,506 369 274 2,000 28 Nov... 21,801 353 274 2,000 28 Dec... 21,995 353 4734 274 2,000 28 1941—Jan.... 22,116 353 734 274 2,000 28 Feb... 22, 232 353 734 274 2,000 28 Mar... 22, 367 353 734 274 2,000 Apr... 22, 506 353 274 2,000 May.. 22, 575 353 274 2,000 June.. 22, 624 353 274 2,000 July... 22, 675 353 2,000 Aug... 22, 719 352 2,000 Sept._. 22, 761 End of month H ga u r n y - (P I e r r a s n ia) Italy Japan Java Mexico e N rl e a t n h d - sZe N a e la w nd N w o a r y - Peru Poland Po g r a t l u- Ru n m ia a- A So fr u ic th a Spain 1936—Dec... 463 491 114 203 »718 1937—Dec... 210 261 79 933 82 120 189 5 525 1938—Dec... 193 164 80 998 94 133 220 1939—Dec... 144 164 90 692 94 152 249 1940—Sept... i 137 164 109 634 184 156 314 Oct.... 164 109 629 157 328 Nov... 164 129 621 157 351 Dec... 164 140 617 158 367 1941—Jan.... 164 152 616 158 376 Feb... 164 171 614 158 388 Mar... 178 614 158 401 Apr... 174 572 171 413 May.. 174 572 172 418 June.. 173 573 175 427 July._. 173 573 178 431 Aug... 193 573 178 436 Sept... Government gold reserves * not included End of month S d w e e n - e S r w la i n tz d - T k u ey r- U K d n i o i n m t g ed - g U u r a u y - V zu e e n l e a - 7 Y sl u av go ia - B.I.S. t O c r o i t e u h s n e 8 - r E m n o d n t o h f U i S n n t a p i t r t e e e s d vio U u K s d n i o i n m f t g i e g - d ures France g B iu el m - 1936—Dec... 240 657 2,584 183 1937—June... 169 2 934 115 1937—Dec... 244 650 2,689 185 Dec... 3 1, 395 81 1938—Dec—. 321 701 2,690 142 1938—Mar.._ 1,489 1939— Dec... 549 91 149 June- 44 62 Sept 759 1940—Sept... 152 490 1 87 145 Oct. * 103 Oct.... 150 500 1 145 Dec... 80 331 44 Nov... 157 501 1 145 1939—Mar.. 154 1,732 559 Dec... 160 502 1 90 145 May. 477 1941—Jan.... 165 520 1 95 145 June— 85 17 Feb... 171 524 1 97 145 Sept... 164 Mar... 172 527 1 100 145 Dec... 156 17 Apr... 174 528 1 105 145 1940—Mar... 145 May.. 180 530 1 108 145 June— 86 17 June.. 192 528 1 108 144 Sept. 105 July... 189 533 1 108 144 Dec... 48 17 Aug. _. 191 525 1 144 1941—Mar... 88 Sept. . 1 146 June _- 89 1 Figures relate to last official report dates for the respective countries, as follows: Germany 1 Reported at infrequent intervals or on de- —June 15, 1939; Italy—late in Mar. 1940; Norway—Mar. 30, 1940; Poland—July 31, 1939. layed basis: U. S.—Exchange Stabilization Fund 2 Beginning Apr. 1940, reports on certain Argentine gold reserves no longer available. (Special A/c No. 1); U. K.—Exchange Equaliza- * On May 1,1940, gold belonging to Bank of Canada transferred to Foreign Excrange Con- tion Account; France—Exchange Stabilization trol Board. Gold reported since that time is gold held by Minister of Finance. Fund and Rentes Fund; Belgium—Treasury. * Change from previous December due largely to inclusion of gold formerly not reported. 2 Figure for end of Mar. 1937, first date re- * Figures for Dec 1936 and Dec 1937 are those officially reported on Aug. 1,1936, and Apr. ported. 1938, respectively. 3 Figure for end of Sept. 1937. 8 Beginning Mar. 29,1941, gold reserves no longer reported separately. 4 First date reported For complete monthly 7 Beginning Dec. 1940, figures comprise largely reserves of new Central Bank but also series from Oct. 1938-May 1939, see BULLETIN include remaining holdings of four former banks of issue amounting since March 1941 to about for February 1941, p. 170. $12,000,000. NOTE.—For details regarding special gold 8 These countries are: Albania, Algeria, Australia, Austria through Mar. 7, 1938, Belgian transfers in 1939-40 between the British E. E. A. Congo, Bolivia, China, Danzig through Aug. 31,1939, Ecuador, El Salvador, Estonia, Finland, and the Bank of England, and between the Guatemala, Iceland, Latvia, Lithuania, Morocco, and Thailand (Siam). Figures for certain French E. S. F. and the Bank of France, see of these countries have been carried forward from last previous official report. BULLETIN for September 1940, p. 926. » Gold holdings of Bank of England reduced to nominal amount by gold transfers to British Exchange Equalization Account during 1939. NOTE.—For description of table and back figures see BULLETIN for September 1940, pp. 925-934 and pp. 1000-1007; details regarding special internal gold transfers affecting the reported figures through April 1940 appear on p. 926 in that issue. 1191 NOVEMBER 1941 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 . utside Total A So fr u ic th a d R e h s o i - a A W fri e c s a t s B C e o l n g g ia o n 3 4 Canada5 Mexico j^ Chile Au li s a t ra- B In ri d ti i s a h 6 $1=15-6/'SI grains of gold 9/10 fine; i. e., an ounce of fine gold=$85 1934.. 823,003 707, 288 366, 795 24,264 12,153 6,549 108,191 104,023 23,135 12,045 8,350 30, 559 11, 223 1935. 882, 533 751,979 377,090 25,477 13, 625 7,159 126, 325 114,971 23,858 11,515 9,251 31, 240 11,468 1936. 971, 514 833,088 396, 768 28,053 16, 295 7.386 152, 509 131,181 26,465 13, 632 9,018 40,118 11, 663 1937. 1,041, 576 892, 535 410, 710 28, 296 20, 784 8; 018 168,159 143, 367 29, 591 15,478 9,544 46,982 11,607 1938.. 1,136, 360 957, 212 425, 649 28,532 24, 670 8,470 178,143 165, 379 32, 306 18, 225 10, 290 54, 264 11, 284 1939.. 1, 212, 796 1, 016, 791 448, 753 28,009 28,564 8,759 196,391 178,303 29, 426 19,951 11,376 56,182 11,078 1940. 1, 275, 505 1,088, 835 491, 628 29,155 32,163 38, 862 210,109 185,890 30,878 22,117 11,999 55, 878 10,157 1940—July.._ 109, 760 92, 665 41, 936 2,459 2,590 19,109 16,007 3,010 1,952 850 4,263 490 August 109, 305 92, 557 41,989 2,498 2,725 16, 294 16, 343 4,027 2,184 1,243 4,693 560 September.. 106, 505 89, 672 40, 958 2,450 2,652 17, 324 15, 440 2,596 2,016 673 4,616 945 October 113,330 97, 803 42,362 2,477 2,709 22,004 16,386 2,337 1,789 1,121 5,638 980 November.. 108, 080 92, 522 41, 620 2,404 2,687 19, 952 15, 775 1,905 1,713 4,592 945 December.. 107, 800 91, 852 41,188 2,433 2,668 19, 694 15, 780 2,221 1,675 4,333 980 1941—January. _. 106,015 90, 373 42, 335 2,326 2,618 16, 646 15,199 2,945 2,137 784 4,544 840 February.. 100,450 84, 090 39, 608 2,237 2,566 15, 408 14,446 2,670 1,844 695 3, 812 805 March 106, 365 89, 526 42, 075 2,318 2,696 16,023 15,629 2,702 1,891 1,313 4,040 840 April 105, 525 41, 357 2,355 2 2, 580 16,413 15, 384 2,491 2,071 896 4,133 805 May 105,105 88,114 42, 716 2,355 2,615 16,022 15, 721 1,448 1,872 528 4,136 700 June 105, 980 P8S, 938 41,186 /2, 355 f2, 615 16, 468 15, 890 2,845 1,777 1,023 3,939 840 July P93,189 43, 093 /2, 355 n, 6i5 18, 537 15, 983 /2, 845 2,072 628 4,185 875 August P91,171 42, 458 /2, 355 /2,615 17, 487 /15, 983 /2, 845 1,739 /628 /4,185 /875 Oold production in U. S. S. R.: No regular Government statistics on gold production in U. S. S. R. are available, but data of percentage changes irregularly given out by officials of the gold mining industry, together with certain direct figures for past years, afford a basis for estimating annual production as follows: 1934, $135,000,000; 1935, $158,000,000; 1936, $187,000,000; 1937, $185,000,000; 1938, $180,000,000. p Preliminary. / Figure carried forward from last previous figure without footnote /. 1 Annual figures through 1939 are estimates of U. S. Mint. Annual figure for 1940 and monthly figures are based on estimates of American Bureau of Metal Statistics given in thousands of fine ounces. 2 Beginning April 1941, figures are for Gold Coast only. 3 Beginning May 1940, monthly figures no longer reported. Annual figure for 1940 estimated at three times production for first four months of the year. 4 Includes Philippine Islands production received in United States. Monthly figures for U. S. for 1940 represent estimates of American Bureau of Metal Statistics revised by adding to each monthly figure $242,602 so that aggregate for 1940 is equal to annual estimate compiled by Bureau of Mint in cooperation with Bureau of Mines. 6 Figures for Canada beginning January 1941 are subject to official revision. 6 Beginning May 1940, figures are those reported by American Bureau of Metal Statistics. NOTE.—For monthly figures back to January 1929 and for explanation of table and sources see BULLETIN for March 1939, p. 227; February 1939, p. 151; June 1938, pp. 539-540; and April 1933, pp. 233-235. For annual figures of world production back to 1873 (including Russia-U. S. S. R.), see Annual Report of Director of Mint for 1940, p. 101, and 1936, pp. 108-109. GOLD MOVEMENTS UNITED STATES [In thousands of dollars at approximately $35 a fine ounce] Y m e o a n r t o h r im T n p o e o t t a r l ts U K d n i o i n m t g e - d France g B iu e m l- N la e e n r t - d h s - S d w en e- S l w a er n i - t d z- C a a d n a - M ic e o x- Co b l i o a m- P Is p h l i i a n l n i e p d - s t A ra u l s i - a A So fr u ic th a Japan B I r n i d ti i s a h c o t o r t A h i u e l e n l s r - Net imports from or net exports (—) to: 1934 i 1,131, 994 499,870 260, 223 8,902 94, 348 12, 402 86, 82930, 270 16, 944 12,038 1,029 12 4 76,820 32, 304 1935 1, 739,019 315, 727 934, 243 3 227,185 968 95,17113, 667 10, 899 15, 335 3,498 65 75, 268 46,989 1936 L, 116, 584 174,093 573, 671 3,351 71,006 2 7,511 72, 64839, 966 11,911 21, 513 23,280 8 77, 892 39, 735 1937 1, 585, 503 891, 531-13,710 90, 859 6,461 6 54, 452 111, 48038, 482 18, 397 25,427 34, 713 181 246,464 50, 762 29, 998 1938 1,973, 569I, 208, 728 81,135 15,488 163,049 60,146 1,363 76, 31536,472 10, 557 27, 880 39,162 401 168, 740 16,159 2 67,975 1939 3, 574,151 1, 826, 403 3,798165,122 341, 618 28,715 86, 987 612, 94933, 610 23, 239 35, 636 74,250 22, 862 165, 605 50,9563102, 404 1940 4, 744,472 633, 083 241, 778 977 63,260161, 489 90, 3202, 622, 33029,880 23, 999 38, 627103, 777 184, 756 111, 739 49,9894 388,468 1940 Sept 334,100 3,650 27 217, 627 545 2,330 3,764 14,605 7,854 13, 228 523 69,946 Oct 325, 964 1,738 222,726 538 7 2,673 14, 770 6,704 11,815 784 64, 208 Nov... 330,107 936 7 262, 718 545 3,283 14, 441 6,240 12,186 2,170 27, 580 Dec 137,176 99 80, 389 347 2,814 3,268 14, 994 1,751 13, 262 7,446 12,805 1941 Jan 234, 242 37 1 1,746 563 46,876 1,147 3,168 3,185 11,136 149, 735 6,085 4,501 6,062 Feb 108, 609 1,218 337 81, 529 814 11 2,772 6,738 96 & 15,093 Mar 118, 567 817 95, 619 866 2,232 3,984 6,262 2,788 3,046 2,951 Apr 171, 992 21 20, 216 1,147 2,934 3.587 4,720 132, 261 313 6,793 Gross imports from:6 Mav 34, 830 2 16, 309 969 2,794 3,384 4,194 3,594 3,589 June... 30, 712 474 1 17, 521 800 2,114 4,593 69 131 5,009 July 37,041 542 19, 228 1,088 2,128 4,972 5,199 88 3,811 Aug. 36, 973 79 10, 845 843 2,230 5,098 6,742 137 1,995 9,011 Sept 65, 702 250 42, 563 495 2,488 3,107 2,064 3,694 711, 045 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, and $37,555,000 from other countries. * Includes $75,087,000 from Portugal, $59,072,000 from Argentina, $43,935,000 from Italy, $33,405,000 from Norway, $30,851,000 from U. S. S. R., $26,178,000 from Hong Kong, $20,583,000 from Netherlands Indies, $16,310,000 from Yugoslavia, $11,873,000 from Hungary, $10,802,000 from Chile, $10,775,000 from Brazil, $10,416,000 from Spain, $10,247,000 from Peru, and $28,935,000 from other countries. 6 Includes $11,236,000 from U. S. S. R. 6 Beginning May 1941, the Department of Commerce suspended publication of export statistics by country of destination. 7 Includes $5,652,000 froonm "U . S~. S~. ~R. NOTE.—For gross import and export figures and for additional countries see table on p. 1153. 1192 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 Central banking Return Inflow of brokerage bank funds of U. S. foreign balances Total funds Other abroad funds funds in N. Y. i 1935—Dec. (Jan. 1, 1936) 1,412. 5 603.3 9.8 593.5 361.4 125.2 316.7 6.0 1936—Dec 30 2, 608. 4 930.5 81.1 849.4 431.5 316.2 917.4 12.9 1937—Dec. 29 ,. 3,410.3 1,168. 5 243.9 924.6 449.1 583.2 1,162.0 47.5 1938—Mar. 30 3,207. 2 949.8 149.9 799.9 434.4 618 5 1,150 4 54 2 June 29 . _ _ 3,045. 8 786.2 125. 9 660.4 403.3 643.1 1,155. 3 57.8 Sept 28 • 3,472.0 1,180. 2 187.0 993.2 477. 2 625 0 1,125 4 64 1 Dec. (Jan. 4, 1939).. _ . 3,844. 5 1,425. 4 238. 5 1,186. 9 510.1 641.8 1, 219. 7 47.6 1939—Mar 29 4,197. 6 1, 747. 6 311.4 1, 436. 2 550 5 646 7 1,188 9 63 9 June 28 . 4,659. 2 2, 111. 8 425.3 1, 686. 5 607.5 664 5 1,201 4 74 0 Sept. 27 5,035. 3 2,479. 5 552.1 1,927. 3 618.4 676.9 1,177. 3 83.1 Dec (Jan. 3, 1940) 5,021. 2 2, 430. 8 542. 5 1,888. 3 650.4 725.7 1,133. 7 80.6 1940—Mar (Apr. 3) 5,115. 9 2. 539. 0 539.1 1,999.9 631. 6 761 6 1,095 0 88 7 June (July 3).._ 5, 440. 7 2, 830.1 922. 3 1, 907.8 684.1 785.6 1,042.1 98.9 1940—Aug. 7 — 5, 614.1 2,941. 2 a 945.0 » 1,996. 2 764.8 789.5 1,019.0 99.6 Aug 14 5, 647. 4 2,984. 9 996.3 1,988. 6 769.2 790 2 1 004 0 99 1 Aug. 21 5, 687. 5 3,022. 5 1,018. 5 2,004.0 774.0 790 4 1,001 4 99 1 Aug. 28 5, 699. 3 3,034. 2 1,047. 9 1,986. 3 778.3 790.5 996.5 99.9 Sept 4 5, 699. 8 3,040. 7 1,054. 7 1,986.0 773.1 790.4 995.1 100.5 Sept 11 5, 668.4 3,014.1 1,012. 8 2,001. 3 768.4 790 8 995 2 99 9 Sept. 18 5, 751.9 3,087. 2 1,107. 7 1,979. 5 773.2 791 2 999 8 100 6 Sept. 25 5, 731. 9 3,062. 6 1,087. 0 1, 975. 5 782.0 791 6 995.0 100.8 Oct. 2 . 5, 748.1 3,092. 8 1,112. 3 1,980. 5 773.6 793 1 987 0 101.6 Oct. 9 , 5, 767. 0 3,108. 5 1,133. 6 1, 975.0 781.8 793 5 981 9 101.3 Oct. 16 5, 736. 6 3,086. 3 1,129. 9 1,956.4 780.9 793 9 974.5 100.9 Oct 23 5, 744. 0 3,118. 7 1,140.1 1, 978. 6 765.6 793 9 964 7 101.2 Oct. 30 5, 731.0 3,112. 5 1,158. 9 1,953. 6 765.7 794.4 957.6 100.7 Nov. 6 5, 745. 0 3,137.0 1,190. 7 1,946. 3 762.3 795 4 950 3 100.0 Nov 13 5, 734. 7 3,141.9 1,195. 5 1,946. 4 751.5 795.9 946.0 99.4 Nov 20 5, 786 9 3,199. 3 1,248. 7 1,950. 6 752.3 797 9 936 0 101.4 Nov. 27 5, 780. 7 3,194.0 1,231. 6 1,962. 5 764.0 798.2 924.5 100.0 Dec. 4 5, 758.0 3,177. 8 1, 209.1 1,968. 7 763.0 800 2 917.4 99.6 Dec. 11 5, 718. 2 3,146. 5 1,186. 3 1, 960. 2 757.6 801 3 913 5 99.3 Dec. 18 5, 763. 7 3,182.1 1, 209. 7 1, 972. 4 771.1 802.9 907.5 100.2 Dec 25 5,733 0 3,160. 9 1,182. 4 1, 978. 5 771.6 802 8 896 3 101.3 1941—Jan. 1 5,727 6 3,159.0 1, 200. 8 1, 958. 3 775.1 803 8 888.7 100.9 Jan 8 5, 704 0 3,152. 9 1,198. 8 1, 954.1 775.8 804 6 869 4 101.3 Jan.15 5, 781. 3 3, 257. 6 1, 301. 3 1, 956. 4 772.2 806 4 843.3 101.7 Jan 22 5,747 5 3, 255. 2 1, 303. 3 1,951.9 757.1 807 6 827 8 99.8 Jan. 29 5, 694. 5 3, 215.9 1, 288. 2 1,927. 7 759.9 808.1 811.9 98.8 Feb.5 5, 644. 3 3,175. 9 1, 269. 0 1,906. 9 763.1 809 0 799.3 97.0 Feb. 12 5, 609. 9 3,156. 9 1, 255. 0 1, 901. 8 754.6 810.5 792.1 95.9 Feb. 19 5, 563. 8 3,108.1 1, 228. 8 1, 879. 4 764.6 811 5 783.1 96.5 Feb. 26 5, 564. 5 3,102. 6 1, 243. 4 1, 859. 2 776.1 812.7 775.8 97.2 Mar 5 5 560 8 3,128 1 1, 249. 6 1,878 5 764.9 814 0 757 3 96.6 Mar 12 5 592 9 3,188. 0 1, 300.1 1, 887. 9 752.1 814.1 741.9 96.9 Mar. 19 5, 598 8 3, 202. 4 1, 346. 2 1, 856. 2 756.2 814 8 726.9 98.4 Mar 26 5, 567 0 3,185. 2 1, 325. 6 1, 859. 6 755.4 815 8 714.7 95.8 Apr. 2 5, 526. 5 3,148. 8 1, 307. 7 1,841.0 767.4 812.7 701.8 95.9 Apr 9 5 647 5 3, 273. 6 1, 416. 6 1,857. 0 766.4 815 6 694.7 97.1 Apr. 16 5, 678. 3 3, 299. 2 1, 434. 7 1, 864. 5 772.4 816.2 691.9 98.7 Apr. 23 5, 666. 3 3, 279. 2 1, 424. 0 1, 855. 2 785.0 816. 7 686.8 98.5 Apr. 30 5, 652. 5 3, 257. 3 1, 406. 4 1,850. 9 798.9 815.7 682.4 98.2 May 7 5, 639.1 3, 243. 5 1, 400.4 1, 843.1 791.6 832.9 673.8 97.2 May 14 5,602. 2 3, 224. 2 1, 414.8 1, 809. 4 792.4 833.5 655. 2 96.8 May 21 5,627 8 3, 252. 0 1, 421. 2 1, 830. 9 794.6 834.5 649.6 97.0 May 28 5, 635. 8 3, 266. 4 1, 417. 5 1, 848. 9 794.9 835.4 641.6 97.5 June 4 . ___ . 5, 608. 9 3, 235. 2 1, 418. 6 1, 816. 6 803.6 836.3 637.1 96.8 June 11 5, 602 7 3, 226. 9 1,401.3 1. 825. 6 811.6 832 6 634.4 97.2 June 18 5, 627. 8 3, 249. 3 1, 407. 9 1,841.4 815.7 831.6 634. 4 96.7 June 25 5 620 7 3 240 9 1,410 3 1,830 7 817 8 833 1 632.4 96.5 July2 5, 575. 4 3,193. 3 1, 375.1 1, 818. 2 818.6 834.1 631.2 98.2 July 9 5 584 6 3,194. 6 1, 366 2 1, 828. 4 826.2 835 5 630.0 98.3 July 16 5, 561. 8 3,171.5 1, 362. 8 1, 808. 7 826.2 837.8 628.2 98.2 July 23 5, 534. 0 3,153. 6 1, 342. 7 1,810.9 819.4 838. 3 624.8 97.9 Julv 30 5 506 9 3,141.4 1, 320. 3 1,821.1 803.5 838.9 623.6 99.5 * Including funds in accounts transferred from central bank to government names; for original explanation of funds included under this heading see BULLETIN for April 1939, p. 285. a In the week ending August 7, a foreign central bank account amounting to $55,000,000 was changed to a foreign private account. 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. 1193 NOVEMBER 1941 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 t h J r a o n u . g 2 h ,1 - 935, Total U d K n o i i m n 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 C ad an a - A L m i a c t a e in r- Asiai ot A he ll r i 1935—Dec. (Jan. 1, 1936).. 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. (Jan. 4, 1939) _ 3,844. 5 1,183. 8 339.6 328.6 557.5 140.5 32.2 472.0 3,054. 2 155.3 384.6 214.2 36.2 1939—Dec. (Jan. 3, 1940). 5,021. 2 1,101.3 468.7 470.3 773.0 165.9 58.0 752.9 3, 790.1 229.4 483.4 431.0 87.4 1940—Oct. 30 5, 731. 0 931.3 679.9 456.9 896.7 173.9 75.9 930.0 4,141. 6 384.4 601.0 515.4 85.6 Nov. 27 5, 780. 7 927.9 675.9 450. 8 895.8 173.8 70.3 925.5 4,119. 9 415.5 606.5 557.9 80.9 Dec. (Jan. 1, 1941)_ 5, 727. 6 865.2 670.3 455.6 911.5 175.9 55.4 922.7 4, 056. 6 411.7 606.8 562.3 90.2 1941—Jan. 29 5, 694. 5 866.4 667.4 451.5 890.5 175.3 49.3 906.9 4, 007. 3 416.5 611.2 563.4 96.1 Feb. 26 5, 564. 5 771.7 667.7 451.0 879.2 176.4 47.5 905.0 3, 898. 5 410. 5 597. 5" 558.7 99.3 Mar. (Apr. 2) 5, 526. 5 716.7 665.4 471.0 883.6 177.1 47.4 3, 859. 3 394.9 623.7 547.0 101.7 Apr. 30 5, 652. 5 789.4 668.6 463.3 872.4 177.8 47.0 899.2 3, 917. 7 410.7 639.1 568.0 117.0 May 28 5, 635. 8 760.6 670.2 457.5 881.2 177.6 47.3 884.7 3, 879.1 403.8 650.4 583. 6 119.0 June (July 2) 5, 575. 4 696.1 670.5 456.7 177. 6 47.0 883.6 3, 818. 2 400.4 659.5 579.7 117.6 July 9... 5, 584. 6 671. 2 455.9 886.3 177.5 47.2 880.7 3, 804. 4 404.4 656.5 602.2 117.1 July 16.. 5, 561. 8 682.0 671.3 455. 9 876.1 177.9 47.0 881.4 3,791.6 403.0 656.5 589.5 121.2 July 23.. 5, 534. 0 668.7 670.1 455.8 874.0 178.1 47.1 880.8 3, 774. 7 402.8 649.2 588.3 119.0 July 30.. 5, 506. 9 650.1 669.5 457.0 874.7 178.5 882.3 3, 758. 6 406.9 640.9 579.4 121.0 TABLE 3.—FOREIGN BANKING FUNDS IN UNITED STATES, BY COUNTRIES From t h J r a o n u . g 2 h , - 1935, Total U K d n i o i n m t g e - d France N la e e n r t d - h s - S l w a e n r i - t d z- m G a e n r y - Italy E O u t r h o e p r e E T u o ro ta p l e ada A L i m a c t a e in r- Asia' ot A he ll r i 1935—Dec. (Jan. 1, 1936). 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 1037—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. (Jan. 4, 1939) 1,425. 4 364.0 155.3 87.9 205.1 -11.8 1.7 208.6 1,010. 7 101.6 127.6 163.3 22.2 1939—Dec. (Jan. 3, 1940) 2, 430.8 376.1 256.1 190.9 362.7 -20.1 19.7 470.0 1,655. 4 174.5 215.1 325.4 60.5 1940—Oct. 30 3,112. 5 306.6 468.7 165.1 476.3 -20.6 .6 615.6 2,012.4 307.9 325.1 410.3 56.8 Nov. 27 3,194.0 325. 0 465.5 158.9 479.9 -21.6 .1 609.4 2,017.1 335.0 332.7 456.0 53.2 Dec. (Jan. 1, 1941) 3,159. 0 293.3 458.0 160.3 494.7 -22.9 -.9 603.7 1,986. 3 334.1 326.4 450.9 61.3 1941—Jan. 29.... ___. 3, 215. 9 349.7 455.1 156.1 482.3 -24.2 -2.8 587.5 2, 003. 7 343.4 336.1 465.0 67.7 Feb. 26 3,102. 6 279.2 455.0 155.4 475.8 -22.7 -3.3 584.6 1,924.1 334.6 314.2 458.4 71.3 Mar. (Apr. 2) 3,148. 8 297.3 452.8 173.4 484.2 -24.0 -3.5 576.9 1,957.1 321.4 349.3 446.9 74.1 Apr. 30 3. 257. 3 382.8 455.6 165.8 475.4 -239 -3.8 576.7 2,028. 7 333.9 358.0 446.9 89.9 May 28 3, 266. 4 389.9 456.1 159.8 493.5 -24.2 -4.1 560.6 2,031. 7 312.0 367.2 462.5 93.0 June (July 2) 3.193. 3 334.4 451.0 157.3 500.5 -24.0 -4.4 559.6 1, 974. 4 317.8 371.9 433.7 95.5 July 9 3.194. 6 324.8 450.4 156.6 500.4 -24.0 -4.3 556.7 1,960. 7 323.4 366.9 448.8 94.9 July 16 3,171.5 322.7 449.8 156. 6 490.2 -23.7 -4.4 556.7 1, 948.1 320.8 365.8 438.4 98.5 July 23 3,153. 6 311.9 448.7 156.4 488.4 -23.4 -4.3 556.0 1, 933. 6 320.6 358.8 443.9 96.7 July 30 3,141.4 297.7 447.6 157.5 488.5 -23.4 -4.3 557.3 1, 920. 8 324.5 353.7 442.3 100.0 TABLE 4—UNITED STATES BANKING FUNDS ABROAD. BY COUNTRIES From t h J r a o n u . g 2 h , - 1935, Total U K d n i o i n m t g e - d France N la e e n r t d - h s - S l w a e n r i - t d z- m G a e n r y - Italy E O u t r h o e p r e E T u o ro ta p l e C a a d n a - A L m i a c t a e i r n - Asia* oth A e l r l i 1935—Dec. (Jan. 1, 1936) 361.4 208.8 48.1 -.4 1.6 29.7 13.7 8.8 310.2 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 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. (Jan. 4, 1939) 510.1 206.2 68.4 -5.6 2.6 141.7 13.7 33.8 460.9 35.9 66.8 -46.5 -7.0 1939—Dec. (Jan. 3, 1940). 650.4 252.2 73.8 12.9 2.9 177.8 15.5 28.4 563.5 56.5 52.6 -21.5 -.8 1940—Oct. 30 _ 765.7 272.5 75.0 17.6 6.1 187.2 24.0 46.5 628.9 63.9 42.9 27.7 2.2 Nov. 27 764.0 270.7 74.4 17.5 6.2 188.2 25.0 47.8 629.8 66.5 40.1 26.4 1.2 Dec. (Jan. 1, 1941) .... 775.1 269.2 74.6 17.7 6.5 191.6 25.3 49.8 634.7 60.3 43.2 34.8 2.1 1941—Jan. 29 759.9 269.2 75.4 17.8 5.9 192.4 25.5 48.7 634.8 62.6 40.1 20.2 2.0 Feb. 26 776.1 271.4 75.6 17.8 4.2 193.0 25.5 48.8 636.3 65.4 50.9 21.6 1.9 Mar. (Apr. 2) 767.4 268.2 76.0 17.8 5.0 195.0 25.6 49.7 637.2 65.3 44.4 19.2 1.3 Apr. 30 798.9 269.6 75.9 17.7 5.3 195.7 25.5 50.7 640.4 71.3 47.7 38.7 May 28 794.9 267.4 76.4 17.8 5.2 195.9 25.5 51.4 639.5 68.3 49.8 37.6 June (July 2) 818.6 268.6 76.6 17.8 5.2 195. 7 25.6 51.2 640.8 68.5 52.1 57.7 -.4 July9 826.2 268.3 76.7 17.8 5.2 195.6 25.6 51.2 640.4 68.6 53.6 64.1 -.5 July 16 826.2 268.7 76.8 17.8 5.3 195.7 25.6 51.6 641.4 69.5 53.7 61.7 -.1 July 23 819.4 267. 9 76.8 17.8 5.3 195.6 25.6 51.6 640.6 70.6 53.5 55.2 -.5 July 30 803.5 265.3 76.8 17.9 5.2 196.0 25.1 51.7 638.0 71.3 49.2 46.7 -1.7 i Prior to Jan. 3, 1940, the figures under Asia represent Far East only, the remaining Asiatic countries being included under "All other" * 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. 1194 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 t h J r a o n u . g 2 h , - 1935, Total U K d n i o i n m t g e - d France N la e e n r t d - h s - S l w a e n r i - t d z- m G a e n r- y Italy E O u t r h o e p r e E T u o ro ta p l e C ad an a - A L i m a c t a e in r- Asia* ot A he ll r * 1935—Dec. (Jan. 1, 1936). 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. (Jan. 4, 1939) 641.8 127.7 26.1 27.3 36.1 33.5 22.0 167.8 440.6 -9.7 167.4 33.8 9.7 1939—Dec. (Jan. 3, 1940). 725.7 125.5 42.1 29.4 45.0 36.6 27.6 189.0 495.2 -7.6 184.0 42.8 11.3 1940—Oct. 30 794.4 130.0 42.9 31.0 46.3 36.5 28.1 196.0 510.9 21.3 198.6 50.5 13.1 Nov. 27 798.2 129.7 42.9 31.0 46.0 36.5 28.1 196.1 510.4 23.5 199.8 51.2 13.3 Dec. (Jan. 1, 1941) 803.8 128.6 43.4 31.0 46.0 36.5 28.1 196.4 510.0 25.0 202.3 53.0 13.5 1941—Jan. 29 808.1 128.7 43.5 31.0 46.1 36.5 28.1 197.2 511.2 25.8 203.5 54.2 13.5 Feb. 26 812.7 129.0 43.6 31.0 45.8 36.5 28.1 198.1 512.1 26.4 204.5 55.9 13.8 Mar. (Apr. 2) 812.7 128.3 43.7 31.0 45.2 36.5 28.1 198.9 511.8 26.5 203.0 57.6 13.9 Apr. 30 815.7 127.8 43.8 31.0 45.2 36.5 28.1 199.1 511.5 25.9 206.0 58.2 14.2 May 28 835.4 127.7 43.8 31.0 44.8 36.5 28.1 199.5 511.4 42.7 208.1 59.0 14.2 June (July 2) 834.1 127.2 49.1 31.0 44.7 36.5 28.1 199.6 516.2 37.0 210.5 60.1 10.4 July 9 835.5 127.5 50.3 31.0 44.6 36.5 28.1 199.6 517.6 36.3 210.7 60.4 10.5 July 16 837.8 127.5 50.5 31.0 44.6 36.5 28.1 199.7 517.8 37.2 211.6 60.5 10.5 July 23 838.3 127.5 50.6 31.2 44.5 36.5 28.1 199.7 518.1 37.2 211.8 60.7 10.5 July 30 838.9 127.7 50.8 31.2 44.5 36.5 28.1 199.8 518.5 36.8 212.3 60.8 10.5 TABLE 6.—DOMESTIC SECURITIES, BY COUNTRIES Net Purchases by Foreigners From t h J r a o n u . g h 2 — , 1935, Total U K d n i o i n m t g ed - France N la e e n r t d - h s - S l w a e n r i - t d z- m G a e n r y - Italy E O u t r h o e p r e E T u o ro ta p l e C a a d n a - A L i m a c t a e in r- Asia1 ot A he l r l i 1935—Dec. (Jan. 1, 1936) 316.7 149.8 23.4 50.5 55.1 -5.4 -. 1 12.9 286.2 2.8 3.7 21.4 2.8 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. (Jan. 4, 1939) 1, 219. 7 472.6 76.9 212.1 304.1 -22.8 -5.5 56.6 1,094.1 25.7 23.7 65.2 11.1 1939—Dec. (Jan. 3, 1940) 1,133. 7 328.1 76.6 227.7 344.7 -28.2 -4.9 60.4 1,004.4 -2.6 30.1 87.6 14.3 1940—Oct. 30 957.6 205.0 74.1 230.6 349.6 -29.1 23.1 64.5 917.9 -19.0 26.2 20.0 12.6 Nov. 27 924.5 185.2 74.1 230.9 346.8 -29.1 17.0 64.6 889.6 -20.3 25.1 17.5 12.6 Dec. (Jan. 1, 1941) 888.7 157.1 74.4 233.2 348.1 -29.1 2.7 64.9 851.3 -18.4 25.6 17.6 12.6 1941—Jan. 29 811.9 101.7 74.2 233.3 340.2 -29.2 -1.6 64.6 783.2 -25.7 24.7 17.7 12.0 Feb. 26 775.8 75.1 74.2 233.2 338.9 -30.2 -3.0 64.5 752.6 -26.9 21.8 16.8 11.4 Mar. (Apr. 2) 701.8 6.2 74.2 234.9 334.7 -30. 3 -3.0 64.8 681. 5 -28.9 20.9 16.9 11.3 Apr. 30 682. 4 -7.5 74.3 234.8 332.1 -30. 3 -3.0 64.9 665. 3 -31.8 20.6 17.0 11.3 May 28 641.6 -41.0 74.5 234.7 324.1 -30.4 -2.5 64.8 624.2 -31.3 19.5 17.9 11.3 June (July 2) 631.2 -50. 5 74.6 236.1 321.7 -30. 4 -2.5 64.8 613.8 -34.4 19.3 21.1 11.4 July9 630.0 -51.2 74.5 235. 9 321.7 -30. 4 -2.4 64.7 612.9 -35.6 19.5 21.7 11.4 July 16 628.2 -52.9 74.6 235.9 321.8 -30. 4 -2.4 64.6 611.3 -36.3 19.6 22.1 11.4 July 23 __ 624.8 -54. 6 74.6 235.8 321.7 -30. 4 -2.5 64.6 609.3 -36.9 19.3 21.7 11.5 July 30 623.6 -56.6 74.8 235.8 322.2 -30. 4 -2.4 64.5 607.9 -37.8 19.2 22.9 11.4 TABLE 7.—BROKERAGE BALANCES,' BY COUNTRIES From th J ro an u . 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 C a a d n a - A L i m a c t a e in r- Asiai ot A he ll r i 1935—Dec. (Jan. 1, 1936) () 2.4 1.3 2.5 1.4 7.6 -4.5 1.0 2.9 -.9 1936—Dec. 30.... 4.0 10.4 -.9 9.1 .4 22.6 -7.6 -4.2 2.1 ) 1937—Dec. 29 11.5 11.5 5.0 10.8 5.0 44.0 3.5 -.5 .5 () 1938—Dec. (Jan. 4, 1939) 13.4 12.9 6.8 9.6 5.2 47.9 1.8 -.9 -1.5 1939—Dec. (Jan. 3, 1940) 19.4 20.1 9.3 17.8 5.0 71.6 8.7 1.6 -3.4 2.1 1940—Oct. 30 17.1 19.1 12.5 18.3 7.3 74.4 10.2 8.3 6.8 1.0 Nov. 27 17.2 18.9 12.5 16.9 7.6 73.1 10.7 8.8 6.7 .7 Dec. (Jan. 1, 1941) 17.0 19.9 13.4 16.2 7.9 74.3 10.7 9.2 6.0 .7 1941—Jan. 29 17.1 19.2 13.3 15.9 8.9 74.4 10.4 6.8 6.3 .9 Feb. 26 17.0 19.3 13.5 14.4 9.1 73.3 10.9 6.1 6.1 .9 Mar. (Apr. 2)___ 16.7 18.7 13.9 14.5 7.9 71.7 10.6 6.1 6.4 1.1 Apr. 30 16.7 19.0 14.0 14.3 7.8 71.8 11.4 7.0 7.2 May 28 16.6 19.4 14.3 13.6 8.4 72.3 12.0 5.8 6.7 June (July 2) 16.4 19.2 14.5 14.5 8.4 73.1 11.6 5.7 7.1 July9 16.1 19.4 14.5 14.3 8.5 72.8 11.6 5.7 7.3 July 16 16.0 19.5 14.5 14.2 8.8 72.9 11.7 5.8 6.9 July 23 16.1 19.3 14.6 14.1 8.9 73.1 11.4 5.8 6.8 July 30 16.0 19.6 14.7 14.2 9.0 73.4 12.1 6.5 6.7 i Prior to Jan. 3, 1940, the figures under Asia represent Far East only, the remaining Asiatic countries being included under "All other". > For explanation see BULLETIN for May 1937, pp. 395-396. * Inflow less than $50,000. < Outflow less than $50,000. NOVEMBER 1941 1195 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] TABLF 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 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 C a a d n a - A L m i a c t a e in r- 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. (Jan. 4, 1933) 733.8 171.0 72.2 13.8 82.2 30.2 36.6 63.1 469.1 89.3 117.8 44.4 13.1 1933—Dec. (Jan. 3, 1934) 388.2 48.3 24.9 8.3 11.9 16.3 9.9 30.1 149.7 88.7 96.4 43.1 10.4 1934—Nov. 28 2 466.7 59.1 32.7 12.7 9.7 25.8 14.3 41.7 196.0 91.9 106.6 60.3 11.9 Reported by Banks in United States 1934—Dec. 5 3 584.8 79.6 36.1 13.5 12.1 28.4 16.8 40.6 227.1 103.3 117.4 125.1 12.0 Dec. (Jan. 2, 1935). 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—Dec. (Jan. 1, 1936) 1, 200. 2 205.5 163.5 68.6 86.1 29.0 26.1 107.5 686.3 145.3 156.3 188.9 23.4 1936—Dec. 30 1, 491. 6 235.7 176.3 78.8 123.5 32.0 41.7 126.3 814.3 186.1 263.9 200.2 27.1 1937—Dec. 29 1, 729. 6 261.5 143.9 89.1 302.1 39.0 25.7 156.0 1,017.1 175.6 280.9 236.0 20.0 1938—Dec. (Jan. 4, 1939) 1, 996. 6 436.1 187.4 101. 8 218.8 17.8 20.4 255.5 1, 237. 8 201.8 248.5 274.3 34.1 1939—Mar. 29 _ 2, 318. 8 473.9 219.5 143.9 247.1 18.7 14.8 314.7 1,432. 7 236.6 300.7 305.5 43.3 June 28 2, 683.0 607.4 284.4 146.0 240.8 15.1 12.2 366.9 1,672. 7 291.7 363.0 306.0 49.7 Sept. 27 3,050. 7 656.7 295.9 186.0 299.9 7.8 17.1 446.4 1,909. 7 325.3 383.0 366.5 66.2 Dec. (Jan. 3, 1940) 3,057.0 448.2 288.2 204.9 376.3 9.5 38.5 516.9 1,882. 6 274.6 336.0 491.4 72.5 1940—Mar. (Apr. 3) 3,165. 2 361.3 290.7 199.7 432.2 8.4 69.3 618.7 1,980. 3 250.1 365.5 515.2 54.1 Apr. (May 1) 3,188. 3 326.6 286.7 213.1 447.6 8.5 71.3 616.1 1, 969. 9 255.3 389.9 517.6 55.6 May 29 3,178. 7 354.5 319.1 198.3 413.6 9.9 65.0 619.3 1,979.8 236.0 402.4 501.9 58.6 June (July 3) 3,456. 3 397.9 504.8 184.7 441.0 9.8 29.8 625.7 2,193.8 259.2 421.4 521.7 60.3 July 31 3,526.2 343.0 497.3 178.3 449.2 13.6 25.8 634.7 2,141.9 353.9 420.8 542.8 66.7 Aug. (Sept. 4) 3, 666. 9 385.7 515.2 182.7 476.4 10.5 26.1 651.7 2,248. 4 395.9 432.3 527.6 62.7 Sept. (Oct. 2) 3, 719.0 386.4 503.5 180.3 459.6 13.2 24.6 667.5 2,235.0 410.7 438.4 567.7 67.1 Oct. 30 3, 738. 7 378.8 500.8 179.1 490.0 9.1 19.4 662.5 2, 239. 6 408.1 446.0 576.3 68.7 Nov. 27 3,820. 3 397.2 497.6 172.8 493.5 8.0 18.9 656.3 2,244. 3 435.2 453.6 622.0 65.1 Dec. (Jan. 1, 1941) 3, 785. 2 365.5 490.1 174.3 508.4 6.7 17.9 650.6 2, 213. 5 434.3 447.3 616.9 73.3 1941—Jan. 29 3,842.1 421.9 487.2 170.0 496.0 5.5 16.0 634.4 2, 230. 9 443.6 457.0 631.0 79.6 Feb. 26 3, 728. 8 351.4 487.1 169.4 489.5 7.0 15.5 631.5 2,151. 3 434.8 435.1 624.4 83.3 Mar. (Apr. 2) 3, 775.0 369.4 484.9 187.3 497.8 5.6 15.3 623.8 2,184. 3 421.5 470.2 612.9 86.1 Apr. 30 3, 883. 5 454.9 487.7 179.7 489.1 5.7 15.0 623.6 2, 255. 9 434.0 478.9 612.9 101.8 May 28 3,892. 6 462.0 488.2 173.7 507.2 5.5 14.7 607.5 2, 258. 9 412.2 488.1 628.5 104.9 June (July 2) 3, 819. 5 406.6 483.1 171.2 514.2 5.7 14.4 606.5 2, 201. 6 417.9 492.8 599.7 107.5 July 9 3, 820. 9 397.0 482.5 170.5 514.1 5.7 14.5 603.6 2,187. 8 423.6 487.9 614.8 106.8 July 16 3, 797. 7 394.9 481.9 170.6 503.9 6.0 14.4 603.6 2,175. 2 420.9 486.7 604.3 110.5 July 23 3, 779. 8 384.0 480.8 170.3 502.1 6.2 14.4 602.9 2,160.8 420.7 4.79. 7 609.9 108.7 July 30 3, 767. 6 369.8 479.7 171.5 5C2.2 6.2 14.4 604.2 2,148. 0 424.7 474.6 608.3 112.0 Additional Detail Available from January 3,1940 4 5 European countries 6 Latin American countries 4 Asiatic countries Date Total g B iu e m l- D m e a n r - k l F a i n n d - N w o a r y - S d w e e n - Total g t A e in n r - a - B z r il a-Chile Cuba M ic e o x- C P a a a . m n n Z d - 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—Mar. (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 40.2 455.1 178.5 75.2 169.4 32.0 Apr. (May 1) 460.2 183.7 23.0 27.2 67.5 158.9 297.1 80.6 35.0 23.4 46.4 67.2 44.5 461.3 184.1 81.1 164.1 32.0 May 29 _ __ __ 443.3 172.0 21.1 29.5 64.1 156.7 311.8 83 3 34.8 24.8 49.6 68.6 50.6 446.2 178.8 79.4 151.8 36.2 June (July 3) 457.0 161.3 19.5 29.6 59.0 187.6 326.5 88.7 39.0 30.2 49.7 65.3 53.5 448.4 181.8 78.4 152.6 35.6 July 31 457.7 154.9 18.4 29 1 57.8 197.5 321.3 93.1 38 0 29.2 48.1 60.3 52.7 446.6 181.6 84.3 142.6 38. 2 Aug. (Sept. 4) 466.7 150.9 17.2 26. 3 54.3 218.0 332.2 103.9 31.4 27.8 51.1 58.5 59.6 408.3 184.7 87.6 97.4 38.7 Sept. (Oct. 2) 470.3 147.9 16.8 29.1 51.2 225.3 338.8 110.1 33.4 26.1 48.7 63.2 57.3 431.6 192.7 87.0 106.8 45.2 Oct. 30 469.0 145.7 16.2 24.3 51.3 231.5 348.2 112.7 39.7 25.0 48.4 64.4 57.9 432.5 195.1 89.4 102.8 45.2 Nov 27 466.2 145.7 16.1 22.0 50.1 232.4 353.3 115.1 44.1 26.9 46.4 62.6 58.6 475.2 218.6 92.2 119.3 45.1 Dec. (Jan. 1, 1941). 462.7 144.8 17.3 16.5 48.7 235.4 341.7 115.4 36.2 28.5 47.9 55.0 58.7 454.5 207.5 91.1 110.3 45.6 1941—Jan. 29 _ 450.5 143.2 17.1 14.1 48.3 227.7 342.5 118 ?,45.4 26.1 48.6 49.3 54.8 464.3 210.5 93.4 114.1 46.3 Feb. 26 437.9 140.7 17.0 12 3 46.2 221.6 319.6 103,3 35 1 25.3 47.3 52.6 55.9 464.4 217.5 97.5 103.4 46.0 Mar. (Apr. 2) 429.6 135.4 16.4 10.6 45.0 222.2 348.6 104.5 44.0 30.5 51.5 53.5 64.5 447.9 216.7 94.5 90.8 45.9 April 30 __ . - 433.1 134.1 16.1 12.5 44.8 225.6 349.1 103.4 50.6 28.8 55.6 48.6 62.1 420.5 187.0 92.8 92.5 48.2 May 28 426.3 125.1 15.2 10.3 44.2 231.5 355.8 107 1 52 4 29.4 60.6 48.8 57.5 418.8 176.5 95.9 94.9 51.5 June (July 2) 425.7 125.5 15.9 5.4 43.7 235.2 364.2 119.4 53.4 29.4 60.1 42.6 59.4 393.4 164.4 101.3 79.2 48.5 July 9 425.2 124.4 16.8 5.4 43.7 235.0 362.2 119.3 52.4 29.9 60.0 43.3 57.4 393.8 163.6 102.3 81.3 46.6 July 16 423.8 124.0 16.7 5.4 43.5 234.2 362.6 123.3 49.0 29.8 60.8 43.8 55.9 387.9 163.3 102.1 76.3 46.2 July 23 __ ._ _ 423.6 123.3 16.7 5 6 43.3 234.8 358.6 117 7 49 9 28.9 63.2 42.9 55.9 386.9 162.3 103.7 77.5 43.4 July 30 425.5 123.4 17.8 5.5 43.2 235. 5 353.6 118.6 46.6 28.0 66.4 42.3 51.7 381.1 159.9 102.3 76.3 42.6 1 Prior to Jan. 3, 1940, the figures under Asia represent Far East only, the remaining Asiatic countries being included under "All other". 2 Last report date on old basis. 3 First report date on new basis. 4 The figures in this supplementary table represent a partial analysis of the figures in the main table under the headings of Other Europe, Latin America, and Asia. NOTE.—The figures given in this table are not fully comparable throughout as a result of certain changes or corrections in the reporting practice of reporting banks which occurred on Aug. 12, 1936, Jan. 5, 1938, Oct. 18, 1939, and May 7, 1941. (See BULLETIN for May 1937, p. 425; April 1939, p. 295; April 1940, p. 362; and September 1941, p. 917.) 1196 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTERNATIONAL CAPITAL TRANSACTIONS OF THE UNITED STATES OUTSTANDING SHORT-TERM ACCOUNTS, BY COUNTRIES [Outstanding amounts in millions of dollars] TABLE 9.—SHORT-TERM FOREIGN ASSETS, BY COUNTRIES Date Total U K d n i o i n m t g 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 C ad an a - A L m i a c t a e in r- Asia' oth A e l r l 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. (Jan. 4, 1933) 949.4 89.4 67.6 14.2 6.4 433.7 11.5 96.1 719.0 43. 9 158.2 24 8 3.5 1933—Dec. (Jan. 3, 1934) 907.1 197.9 65.0 18.1 12.5 258.1 16.8 83.9 652.3 34.7 159.2 54.6 6.3 1934—Nov. 282.— _ 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 Dec. (Jan. 2, 1935) 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—Dec. (Jan. 1,1936) 778.6 88.1 32.5 19.0 6.6 202.0 13.5 71.2 433.0 100.9 154.5 80.1 10.1 1936—Dec. 30 672.6 114.1 16.8 21.9 5.4 165.1 10.9 57.8 392.1 59.4 141.1 67.2 12.9 1937—Dec. 29 655.0 84.8 13.5 23.0 5.5 126.1 20.8 52.9 326.5 118.0 114.4 78.9 17.2 1938—Dec. (Jan. 4, 1939) 594.0 86.0 10.3 24.2 5.5 89.4 13.5 45.9 274.9 60.4 99.1 144.1 15.5 1939—Mar. 29. _ 553.6 83.0 13.8 20.1 3.6 81.4 16.4 48.8 267.1 46.3 99.5 125.7 14.9 June 28 496.6 55.4 10.7 19.7 4.5 77 A 9.5 39.9 217.0 54.0 110.3 100.5 14.8 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 Dec. (Jan. 3, 1940) 508.7 39.9 4.9 5.7 5.2 53.4 11.8 51.4 172.2 39.7 113.3 174.1 9.3 1940—Mar. (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 Apr. (May 1) 515.7 36.8 8.4 8.0 6.4 49.4 17.2 48.6 174.7 37.1 114.3 181.0 8.6 May 29 475.0 30.1 7.9 3.2 6.0 47.3 18.3 44.6 156.5 26.7 113.3 169.5 9.0 June (July 3) 475.0 32.0 6.2 2.6 3.8 47.3 14.2 41.0 147.2 35.3 117.0 167.9 7.7 July 31 444.9 28.2 4.5 1.9 2.5 46.6 9.6 36.6 130.0 31.3 116.3 159.8 7.5 Aug. (Sept. 4) 386.0 22.6 4.2 1.2 1.9 46.0 4.1 34.9 115.0 31.2 112.3 118.6 8.9 Sept. (Oct. 2) 385.5 20.2 3.5 1.1 1.5 45.6 2.8 34.8 109.4 30.8 113.1 125.7 6.4 Oct. 30 393.4 19.6 3.7 1.0 1.9 44.0 3.3 33.3 106.8 32.4 123.1 124.9 6.3 Nov. 27 395.1 21.4 4.3 1.1 1.9 43.0 2.2 32.0 106.0 29.7 125.9 126.2 7.3 Dec. (Jan. 1,1941) 384.0 23.0 4.2 .9 1.5 39.6 2.0 29.9 101.0 36.0 122.7 117.8 6.4 1941—Jan. 29 399.2 23.0 3.4 .8 2.1 38.8 1.7 31.1 100.9 33.6 125.8 132.4 6.5 Feb. 26 383.0 20.7 3.1 .8 3.8 38.2 1.7 31.0 99.4 30.8 115.1 131.0 6.6 Mar. (Apr. 2) 391.7 24.0 2.8 .8 3.1 36.1 1.7 30.1 98.6 30.9 121.6 133.4 7.2 Apr. 30 360.2 22.6 2.8 .9 2.7 35.5 1.7 29.1 95.3 25.0 118.3 113.9 7.7 May2S 364.2 24.7 2.4 .9 2.9 35.3 1.7 28.4 96.3 27.9 116.2 115.0 June (July 2) 340.5 23.5 2.1 .8 2.9 35.5 1.6 28.6 95.0 27.8 113.9 94.9 July 9__. 332.9 23.9 2.1 .8 2.8 35.6 1.6 28.6 95.3 27.6 112.4 88.5 9.0 July 16- 332.9 23.5 2.0 .8 2.8 35.5 1.6 28.2 94.3 26.7 112.3 90.9 8.6 July 23_. 339.7 24.3 2.0 .8 2.8 35.6 1.6 28.2 95.2 25.7 112.4 97.4 July 30.. 355.6 26.9 2.0 .7 2.9 35.2 2.1 28.1 97.8 24.9 116.8 105.9 10.2 Additional Detail Available from January 3,1940 * 5 European countries 6 Latin American countries 4 Asiatic countries Date Total g B i e u l- m D m e a n rk - l F a i n n d - N w o ay r- S d w e e n - Total g t A i e n n r a - - Bra- Chile )uba M ic e o x C P a a m a n .Z n d a - Total )hina H K o o n n g g Japan I P s p h l i a i n l n i e p d - s 1940—Mar. (Apr. 3) 19.4 2.2 .8 4.0 4.5 71.4 12.5 33.0 9.4 10. 4.7 1.1 182.6 26.1 1.7 125.9 28.9 Apr. (May 1) 17.6 1.4 1.0 3.4 3.7 73.9 12.4 34.4 9.7 11.2 5.0 1.2 169.8 23.9 1.8 115.6 28.5 May 29 14.1 1.1 1.5 2.4 4.2 73.9 16.4 32.1 9.5 9.8 5.0 1.1 160.1 24.5 1. 103.2 30.5 June (July 3) 10.6 .7 1.5 1.5 3.4 77.5 16. 33.7 9. 11.4 4.8 1.3 155.2 30.2 1.6 90.6 32.7 July 31 9.1 .4 1.6 1.3 2.8 75.6 16.4 32.8 10.3 9.9 4.7 1.5 145.3 30.5 2. 78.6 33.6 Aug. (Sept. 4) 7.7 .3 1.7 1.2 2.9 72.1 15.1 31.3 9.6 9.9 4.5 1.7 102.3 24.0 3. 45.0 29.5 Sept. (Oct. 2) 7.5 .3 1.7 1.2 2.7 72.5 14.8 30. 10.0 10.6 4.5 1.9 109.8 24.2 4.3 53.2 28.2 Oct. 30 7.6 .3 1.9 1.1 2.1 81.4 13.2 40.2 10. 10.9 4.6 1.7 110.7 24.2 3.0 58.0 25.4 Nov. 27 6.1 .3 1. 1.0 .8 82.9 13.5 39.0 11.7 11.5 5.3 1.9 113.9 24.0 1.5 62.8 25.6 Dec. (Jan. 1, 1941) 5.5 .3 1.8 1.0 78.4 11. 33.1 13.4 11.7 6.1 2.1 103.8 23.7 1.7 55.8 22.6 1941—Jan. 29 5.6 .3 1. 1.2 80.0 11.1 34.0 14.9 11.8 6.1 2.1 117.9 24.2 1.1 71.8 20.7 Feb. 26 5.6 .3 1. 1.2 68.3 10.0 24.4 14.3 11.3 5.9 2.4 114. 23.5 68.3 21.5 Mar. (Apr. 2) 4.8 .1 1.9 .9 71.1 10.4 30.0 12.2 10.7 5.4 2.5 115.2 26.5 67.3 20.4 Apr. 30 4.4 .1 1.9 .6 69.0 10.8 28.1 12.0 10.3 5.4 2.5 97.(1 26.1 1.0 46.9 23.0 May 28 4.2 1.9 .6 67.4 12.7 24.1 12.2 9.7 6.0 2. 98.(1 29.2 2.7 41.1 25.0 June (July 2) 4.4 2.0 .6 12.6 25.4 13.2 9.8 5.9 2.7 78.2 31.1 2.7 17.3 27.1 July 9.-. 4 2.0 12. 25. 12.9 9.8 5.1 2.5 73.0 2.8 16.3 24.7 July 16- 4.4 2.0 68.6 12.1 26.2 12.8 9.9 5.2 2.5 76.2 2.9 19.0 24.6 July 23.. 4.4 2.0 68. 12.4 25.9 12.9 9.8 5.3 2.4 83.0 31. 3.1 22.9 25.3 July 30.. 4.4 2.0 72.4 13.8 27.3 13.5 10.0 5.6 2.3 90.6 34.1 3.0 27.1 26.4 1 Prior to Jan. 3, 1940, the figures under Asia represent Far East only, the remaining Asiatic countries being included under "All other". 2 Last report date on old basis. 3 First report date on new basis. 4 The figures in this supplementary table represent a partial analysis of the figures in the main table under the headings Other Europe, Latin America, and Asia. a Less than $50,000. 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 Aug. 12, 1936, and Oct. 18, 1939 (see BULLETIN for May 1937, p. 431, and April 1940, p. 363). 1197 NOVEMBER 1941 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CENTRAL BANKS Assets of Assets of banking department Liabilities of banking department issue dept. Bank of England Note (Figures in millions of Other Cash reserves co D u is n - ts Securi- ci t r i c o u n la 3 - Deposits Other pounds sterling) Gold* assets 2 and ad- ties liabili- Coin Notes vances Bankers' Public Other ties 1929—Dec. 25. 145.8 260.0 .2 26.3 22.3 84.9 379.6 71.0 8.8 35.8 17.9 1930—Dec. 31. 147.6 260.0 .6 38.8 49.0 104.7 132.4 6.6 36.2 18.0 1931—Dec. 30. 120.7 275.0 .6 31.6 27.3 133.0 364.2 126.4 7.7 40.3 18.0 1932—Dec. 28. 119.8 275.0 .8 23.6 18.5 120.1 371.2 102.4 8.9 33.8 18.0 1933—Dec. 27. 190.7 260.0 1.0 58.7 16.8 101.4 392.0 101.2 22.2 36.5 18.0 1934—Dec. 26_ 192.3 260.0 .5 47.1 7.6 98.2 405.2 89.1 9.9 36.4 18.0 1985— Dec. 25. 200.1 260.0 35.5 8.5 94.7 424.5 72.1 12.1 37.1 18.0 1936—Dec. 30_ 313.7 200.0 46.3 17.5 155.6 467.4 150.6 12.1 39.2 18.0 1937—Dec. 29. 325.4 220.0 .8 41.1 9.2 135.5 505.3 120.6 11.4 36.6 18.0 1988— Dec. 28. 326.4 230.0 .8 51.7 28.5 90.7 504.7 101.0 15.9 36.8 18.0 1039—Dec. 27. 580.0 1.0 25.6 4.3 176.1 554.6 117.3 29.7 42.0 17.9 1940—Sept. 25. 5 630.0 25.5 3.5 169.7 604.8 116.0 13.5 51.9 18.1 Oct. 30. 630.0 .5 38.7 3.0 153.3 591.6 108.0 18.3 51.5 17.7 Nov. 27. 630.0 1.0 36.9 6.9 161.2 593.3 110.8 27.1 50.3 17.8 Dec. 25. 630.0 .9 13.3 4.0 199.1 616.9 135.7 12.5 51.2 17.9 1041—Jan. 29.. 630.0 1.0 31.0 3.8 175.4 599.2 107.9 32.4 53.0 18.0 Feb. 26. 630.0 1.4 27.0 3.7 175.4 603.2 121.7 14.6 53.0 18.1 Mar. 26. 630.0 1.1 18.8 45.3 145.8 611.5 118.6 22.0 52.3 18.1 Apr. 30_ 5 680.0 1.5 56.9 28.3 133.7 623.4 131.8 13.6 57.2 17.7 May 28. 1.6 50.7 11.4 149.4 629.5 110.9 32.3 52.1 17.8 June 25 680.0 1.7 41.3 6.9 156.2 639.0 112.5 25.3 50.4 17.8 July 30_ 680.0 1.7 21.8 6.5 181.7 658.4 132.1 11.3 50.5 17.9 Aug. 27. 680.0 1.8 15.5 6.4 183. 9 664.7 125.7 14.9 49.1 18.0 Sept. 24. 5 730. 0 1.6 58.8 4.6 149.8 671.4 133.9 10.6 52.2 18.1 Assets Liabilities Bank of France Advances to (Figu o re f s f r i a n n m cs i ) llions Gold6 ch e F e i a o x g n - r n g - e m O ar p k e e D n t7 omes c S t i p i a c l e - 7 bills Other F ti o o r n G o c c o o c v s u e t p s r a n 8 - me O n t t her7 a O s t s h e e ts r ci N t r o i c o u t l n e a- G m ov e e n r t n- D C e . p A o . s R it . s 9 Other l O i t a i t b e h s i e l r i- 1929—Dec. 27.. 41,668 25,942 5,612 8,624 8,124 68,571 11,737 7,850 1,812 1930—Dec. 26_. 53, 578 26,179 5,304 8,429 9,510 76,436 12, 624 11, 698 2,241 1931—Dec. 30.. 68,863 21,111 7,157 7,389 11, 275 85,725 5,898 22,183 1,989 1932—Dec. 30_. 83,017 4,484 6,802 3,438 11,712 85,028 2,311 20, 072 2,041 1933—Dec. 29.. 77,098 1,158 6,122 4,739 11,173 82, 613 2,322 13, 414 1,940 1934—Dec. 28.. 82,124 963 5,837 3,971 11, 500 83, 412 3,718 15, 359 1,907 1935—Dec. 27._ 66,296 1,328 5,800 9,712 11, 705 81,150 2,862 8,716 2,113 1936—Dec. 30.. 60,359 1,460 5,640 1,379 8,465 17,698 12,642 89,342 2,089 13, 655 2,557 1937—Dec. 30.. 58,933 911 5, 580 652 10,066 31,909 11,733 93, 837 3,461 19, 326 3,160 1938—Dec. 29.. 87, 265 821 7,422 1,797 7,880 20, 627 18,498 110,935 5,061 25, 595 2,718 1939—Dec. 28.. i°97,267 112 11,273 2,345 5,149 34, 673 20,094 151, 322 1,914 14, 751 2,925 1940—Jan. 25... 97, 268 111 11,861 2,235 5,011 35,673 19,636 151,738 1,834 14,965 3,259 Feb. 29.. 97, 275 109 12, 505 1,810 4,630 40, 523 20, 785 156,150 1,203 17,128 3,156 Mar. 28_. i«84, 614 111 42, 645 1,870 5,005 20, 550 19,666 156,032 1,154 14, 262 3,014 Apr. 25_. 84, 615 112 42, 694 1,781 5,769 20,900 19, 305 156, 285 1,171 14, 681 3,038 May 30_. 84, 616 102 44,083 1,889 14, 473 32, 600 22, 729 170,853 1,046 25, 782 2,811 Junel0__ 84, 616 108 44,173 1,518 11, 885 36, 250 25, 221 174, 469 1,049 25, 405 2,848 Aug. 29ii 84, 616 (12) (12) (12) (12) 27, 200 64,195 (12) 198, 578 995 27, 200 28, 226 (12) N D S O e c e o p t c v t . . . . 3 2 2 1 2 6 i 8 6 H i H H _ . 8 8 8 8 4 4 4 4 , , , , 6 6 6 6 1 1 1 1 6 6 6 6 ( ( ( 1 1 1 4 2 2 2 2 ) ) ) 43,1 ( ( ( 1 1 1 9 2 2 2 4 ) ) ) 6 ( ( ( 1 1 1 6 2 2 2 1 ) ) ) 3,6 ( ( ( 1 4 1 1 2 2 2 6 ) ) ) 3 6 5 7 4 6 2 9 , , , , 2 3 3 8 0 9 1 0 0 7 7 6 6 6 6 6 1 5 9 3 , , , , 3 9 2 2 4 0 0 5 0 0 0 0 23,1 ( ( (1 1 1 7 2 2 2 9 ) ) ) 2 2 2 21 1 0 1 8 4 5 3 , , , , 1 1 4 3 3 7 3 8 1 6 9 3 1, 9 7 0 9 4 9 0 8 7 3 3 3 4 8 1 4 9 , , , , 9 1 9 4 3 0 0 3 0 7 0 2 2 2 2 2 5 7 5 4 , , , , 7 9 2 0 4 0 0 7 1 0 2 5 3,5 ( ( ( 1 1 1 8 2 2 2 6 ) ) ) 1941—July 31- 84,598 37 40,776 6,418 117,715 69, 500 22, 605 242,000 3, 795 P60, 600 P31, 513 3,741 p Preliminary. i Through February 1939, valued at legal parity of 85 shillings a fine ounce. J Securities and silver coin held as cover for fiduciary issue, the amount of which is also shown by this figure. * Notes issued less amounts held in banking department. < On Jan. 6,1939, £200,000,000 of gold (at legal parity) transferred from Bank to Exchange Equalization Account; on Mar. 1, 1939, about £5,- £00,000 (at current price) transferred from Exchange Account to Bank; on July 12, 1939, £20,000,000 of gold transferred from Exchange Account to Bank; on Sept. 6, 1939, £279,000,000 transferred from Bank to Exchange Account. 5 Fiduciary issue increased by £50,000,000 on June 12, 1940, and Apr. 30 and Aug. 30, 1941. 6 Gold revalued in Mar. 1940, Nov. 1938, July 1937, and Oct. 1936. For further details see BULLETIN for May 1940, pp. 406-407; January 1939, p. 29; September 1937, p. 853; and November 1936, pp. 878-880. 7 For explanation of this item, see BULLETIN for July 1940, p. 732. 8 By a series of Conventions between the Bank of France and the Treasury, dated Aug. 25, Oct. 29, Dec. 12, and Dec. 30, 1940, and Feb. 20, Apr. 30, May 10, June 11, and Sept. 23,1941, advances of 130,000,000,000 francs have been authorized to meet the costs of the German army of occupation. (Dates of Conventions revised on basis of information in Bank's statement for July 31, 1941.) 9 Central Administration of the Reichskreditkassen. i° In each of the weeks ending Apr. 20 and Aug. 3, 1939, 5,000,000,000 francs of gold transferred from Exchange Stabilization Fund to Bank of France; in week ending Mar. 7, 1940, 30,000,000,000 francs of gold transferred from Bank of France to Stabilization Fund, ii Figures taken from annual report of Bank for 1940. " Figure not available. NOTE.—For further explanation of tables see BULLETIN for February 1931, pp. 81-83. 1198 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Central Banks—Continued Assets Liabilities (Figu r R r e e e i s c i c h in h sm s m b a a i r l n k li k s o ) ns of R re e f T s s o e e o re r r t v v a ig l e e n s s o ex f c g G h o a o ld n ld g a * e ndB i T c n i h l r c b l e e l s i u c a l ( k l s d a s u s i n n ) r , d y g Se lo c a u n ri s ty E a c s li o g n v i o S e b t r e l e e curiti O es ther a O s t s h e e ts r c N i t r i o c o u t n e la- Deposits l O i t a i t b e h s i 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 4,242 245 161 1,065 4,776 755 1,338 1932—Dec. 31._ 920 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—Dec. 30__ 78 11, 392 30 804 393 2,498 11,798 2,018 1,378 1940—Sept. 30.. 78 13,206 16 50 422 2,184 12,847 1,795 1,314 Oct. 31... 78 13,069 31 56 425 2,240 12,937 1,610 1,352 Nov. 30.. 78 13, 532 26 51 427 2,223 13,198 1,706 1,433 Dec. 31.. 78 15, 419 32 357 2,066 14,033 2,561 1,396 1041—Jan. 31... 77 14,503 28 1,834 13, 694 1,728 1,399 Feb. 28.. 77 15, 284 24 351 1,445 13,976 1,935 1,305 Mar. 31.. 78 15,367 32 352 1,672 14,188 2,127 1,210 Apr. 30_ _ 78 15, 644 22 488 1,548 14,689 2,006 1,117 May 31.. 78 15,918 18 438 1,922 15, 210 2,012 1,174 June 30. _ 78 16, 258 45 416 2,336 15,565 2,373 1,215 July 31- 78 16,754 12 359 2,302 16,031 2,243 1,259 Aug. 30- 77 17, 306 16 384 2,343 16, 502 2,326 1,323 Sept. 30? 77 18, 016 24 (2) 16, 918 2,511 (2) p Preliminary. i Not shown separately on Reichsbank statement after June 15,1939. * Figure not yet available. NOTE.—For explanation of above table see BULLETIN for July 1935, p. 463, and February 1931, pp. 81-83 Central Bank 1941 1940 Central Bank 1941 1940 (Figures as of last report (Figures as of last report date of month) Sept. Aug. July Sept. date of month) Sept. Aug. July Sept. Centra! Bank of the Argentine National Bank of Bohemia and Mo- Republic (millions of pesos): ravia—Cont. (June)' Gold reported separately 1,069 1,071 1,170 Other assets (3) () N O R O e e t t h h d g e e i o s r r t c i a g a o s o b u s l l n e d e t t s e a G d n o d p v a f e o p r r e n e r m ig e n n e t x b c o ha n n d g s e . 4 3 2 4 1 6 6 2 0 5 4 3 22 1 5 9 8 5 7 2 2 1 1 2 8 1 8 0 3 6 Cent N D O ra o e t l h m t e e B r a c n a l i i d n r a c k b u d i l e o l a i p f t t o i i B e o s s n i o t l s ivia (thousands 2 7 , , ( 0 1 3 0 9 ) 1 1 5, ( 9 9 6 7 9 6 Note circulation 1,248 1,263 1,175 of bolivianos): (Apr.)i Deposits—Member bank __. 545 669 365 Gold at home and abroad 104, 959 99, 445 Government 211 64 190 Foreign exchange 42, 607 72, 596 Other 13 13 2 Loans and discounts 224,182 229, 345 Foreign exchange sold forward.. 7 4 12 Securities—Government 440, 344 430, 388 Other liabilities 65 Other (,513 13, 640 Commonwealth Bank of Australia Other assets 202, 454 20, 671 (thousands of pounds): Note circulation 508, 348 441, 316 Issue department: Deposits 422,463 340, 594 Gold and English sterling.... 18, 955 17, 705 16, 082 Other liabilities 92, 248 84,176 Securities 53, 859 52, 614 54, 305 National Bank of Bulgaria (mil- Banking department: lions of leva): (May): Coin, bullion, and cash 3,636 4,108 5,566 Gold 2,006 2,006 London balances 33, 645 42,489 45, 680 Net foreign exchange in reserve. _ 40 4 Loans and discounts 22, 307 22,176 31, 259 Foreign exchange 5,807 1,328 Securities 56, 676 52, 111 44,137 Loans and discounts 905 2,319 Deposits 106, 202 110, 484 119, 075 Government debt 2,593 3,373 Note circulation _ 70, 364 69,114 61, 619 Other assets 3,684 2,459 National Bank of Belgium (millions Note circulation 8,610 5,429 of belgas): (Mar.)1 Deposits 3,522 3,077 Gold 4,331 Other liabilities 2,902 2,984 Foreign exchange. 543 Bank of Canada (thousands of Ca- Credits to State and public bodies 2,186 nadian dollars): Credits to private economy 125 Gold * Due from Bank of Issue, Brussels 373 Sterling and United States ex- Other assets __ 491 change 109, 295 40, 617 472 20, 336 Note circulation 7,596 Canadian Gov't. securities: Demand deposits 296 2 years or less 516,422 519, 716 522, 302 412, 359 Other liabilities 157 Over 2 years 146, 282 141, 365 138,006 120, 742 National Bank of Bohemia and Mo- Other assets ___ 19, 942 21, 284 14, 879 43, 356 ravia (miHions of koruny): (June)' Note circulation 435, 288 422, 230 404, 674 331,957 Gold 1,503 1,602 Deposits—Chartered banks 207, 460 212,902 216, 268 231,336 Foreign exchange 788 892 Dominion Gov't 124,610 60, 657 33, 310 4,441 Discounts 660 302 Other. 6,362 9,965 4,721 9,961 Loans 407 Other liabilities _ 18, 219 17,227 19, 098 1 Latest month for which report is available for this institution. 2 Less than 500,000 koruny. 3 Figure not available. * On May 1,1940, gold transferred to Foreign Exchange Control Board in return for short-term government securities (see BULIETJN for July 1940, pp. 677-678). NOVEMBER 1941 1199 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Central Banks—Continued Central Bank 1941 1940 Central Bank 1941 1940 (Figures as of last report (Figures as of last report date of month) Sept. Aug. July Sept. date of month) Sept. Aug. July Sept. Central Bank of Chile (millions of Bank of Finland—Cont. (May) pesos): Note circulation _ 5,659 Gold 147 147 146 Deposits 796 Discounts for member banks 209 183 168 Other liabilities 3,520 Loans to Government 738 738 746 Bank of Greece (millions of drach- Other loans and discounts 530 522 375 mas) : (Mar.) Other assets 97 99 31 Gold and foreign exchange (net). 18,465 4,959 Note circulation 1,222 1,199 1,022 Loans and discounts 16, 585 15,190 Deposits- Government obligations 3,947 4, 049 Bank 192 189 168 Other assets 3,589 3, 086 Other 70 70 112 Note circulation 19, 371 11,326 Other liabilities 237 231 165 Deposits 20, 908 13, 666 Bank of the Republic of Colombia Other liabilities 2,306 2, 292 (thousands of pesos): National Bank of Hungary (mil- Gold 29,713 30,584 31, 452 26,386 lions of pengo): Foreign exchange 9,823 7,209 13, 587 12, 594 Gold 124 124 Loans and discounts 38,158 33, 501 26, 200 26, 258 Foreign exchange reserve 20 43 Government loans and securities. 56, 405 55, 025 55,141 42, 959 Discounts 887 815 Other assets 30, 728 29, 515 30, 231 31, 532 Loans—To Treasury 803 506 Note circulation 64, 682 65, 085 67,169 54, 923 Other 41 39 D O e th p e o r s i l t i s a bilities T 4 5 6 3 , , 5 5 9 4 7 7 4 4 0 9 , , 9 8 4 0 4 5 4 39 9 , , 4 9 6 7 7 5 3 5 0 4 , , 1 6 5 5 1 6 N O o th te e r c a ir s c s u e l ts ation 1,7 4 7 6 3 7 1,3 3 5 1 7 8 National Bank of Denmark (mil- Demand deposits 251 172 lions of kroner): Consolidated foreign credits of 1931 32 (4) Gold 100 100 117 Other liabilities 286 31& Foreign exchange 29 30 9 Reserve Bank of India (millions of Clearing accounts (net) 676 634 326 rupees): Discounts 9 8 14 Issue department: (June) Loans—To Government agencies 16 17 68 Gold at home and abroad.... 444 444 Other 27 29 110 Sterling securities 1,188 1,315 Securities 136 142 159 Indian Gov't. securities 913 496 Other assets 787 764 344 Rupee coin 366 326 Note circulation 740 736 695 Note circulation 2,769 2, 292 Deposits 843 789 269 Banking department: Other liabilities 198 198 183 Notes of issue department. 142 290- Central Bank of Ecuador (thou- Balances abroad 371 344 sands of sucres) : (Apr.)1 Treasury bills discounted. 9 Gold 65, 674 56,960 Loans to Government 14 Foreign exchange (net) 15, 805 14, 840 Investments 82 Loans and discounts 59, 678 62, 781 Other assets 15 12 Other assets 23, 976 26,185 Deposits 457 632 Note circulation 76,988 73,328 Other liabilities 156 118- Demand deposits 55, 668 46, 617 Bank of Japan (millions of yen): Other liabilities 32, 476 40, 821 C ash, bullion, andf oreign accounts 573 582 () National Bank of Egypt- (thou- Special foreign exchange funds... 300 300 300sands of pounds): (May)' Advances—To Government 2 2 3 Gold.__- 6,241 6,241 Others 561 554 922 Foreign exchange 1,272 329 Government bonds. 4.249 3,786 2,551 Loans and discounts 3,086 8,237 Other assets -_ 487 578 (5) British, Egyptian, and other Note circulation 4,566 4,072 3,556- Government securities 75, 817 43, 851 Deposits—Government 801 833 714 Other assets 6,537 (3) Other,. 323 406 127 Note circulation 41, 573 () Other liabilities 483 491 350 Cent D O ra t e h l p e o R r s e l i i t s a s e — b r i v l O G e it t i o h e B v e s a e r n rn k m o e f n t El Salva- 35 6 9 , , , 9 4 0 1 5 1 3 3 2 1 8 8 1 , , , 8 6 9 5 8 1 5 9 6 Ban L F k G o o o o r a l f e d n J i s g a n v a a n b d i ( l m l d s i i s ll c i o o u n n s t o s f guilders): 3 9 6 1 7 4 9 32 7 1 7 8 9 20 m 5 dor (thousands of colones): Other assets 124 129 106« Gold 13, 233 13, 238 13,191 Note circulation 249 237 124 Foreign exchange 1,110 1,421 692 Deposits 320 280 204 Loans and discounts 1,298 1,359 2,523 Other liabilities 35 35 212 Government debt and securities. 6,308 6,317 5,726 Netherlands Bank (millions of guil- 38 Other assets 1,697 1,606 1,396 ders) : Note circulation 15, 587 15, 783 13, 551 Gold 1,023 1, 023 1,132 Deposits 3,947 3, 572 4,585 Silver (including subsidiary coin) 8 12 14 Other liabilities 4,111 4,587 5,392 Foreign bills 452 397 Bank of Finland (millions of Discounts 97 45 markkaa): (May)' Loans 187 185 231 Gold 556 Other assets 257 274 107 Foreign assets 1,182 Note circulation 1,779 1,705 1,359 Loans and discounts 5,610 Deposits—Government Domestic securities 414 Other 188 173 172 Other assets __ 2,212 Other liabilities 57 56 53 1 Latest month for which report is available for this institution. 2 Items for issue and banking departments consolidated. 3 Figure not available. 4 Included in ''Other liabilities". 5 No comparable figure available; gold alone was reported at 501 million yen. e Includes bills discounted, no longer shown separately beginning Mar. 29, 1941. 1200 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Central Banks—Continued Central bank 1941 1940 Central bank 1941 1940 (Figures as of last report (Figures as of last report date of month) Sept. Aug. July Sept. date of month) Sept. Aug. July Sept. Reserve Bank of New Zealand Swiss National Bank (millions of (thousands of pounds): francs): Gold 2,802 2,802 2,802 Gold._ . 2,273 2 305 2 119 Sterling exchange reserve... 15,091 15, 583 9,988 Foreign exchange 1,268 1,262 627 Advances to State or State un- Loans and Discounts 132 109 320 dertakings _ _ 24, 307 24, 408 28, 015 Other assets 216 227 270 Investments 3,773 3,773 2,553 Note circulation 2,106 2,114 2 110 Other assets 1,661 1,614 379 Other sight liabilities 1,510 1,514 956 Note circulation 22,119 21, 776 20,109 Other liabilities 274 275 270 Demand deposits.. 23, 005 23, 902 21, 289 Central Bank of the Republic of Other liabilities 2,511 2,501 2,339 Turkey (thousands of pounds): Bank of Norway (millions of Gold 119 258 108 538 kroner): (Mar.)' Foreign exchange—Free 39 Gold _ — 186 In clearing accounts 44 986 18 538 Foreign assets 102 Loans and discounts 444 128 321 257 Total domestic credits and Securities... _ _ _ 190,853 195, 076 securities 435 Other assets. _ 36 302 35 172 Discounts Note circulation 517 066 368 438 Loans._ ________ Deposits—Gold 79, 358 78, 250 Securities (2) Other 101 230 97 016 Other assets (2) Other liabilities 137 872 134? 916 Note circulation _. 599 Bank of the Republic of Uruguay Demand deposits—Government. 9 (thousands of pesos): Other 112 Issue department: Other liabilities (2) Gold and silver 86 235 86 235 Central Reserve Bank of Peru Note circulation __ 109, 857 93, 604 (thousands of soles): Banking department: Gold and foreign exchange 55,418 56, 700 Gold 82, 841 50, 683 Discounts __ __ . 24, 693 15, 018 Notes and coin 24 974 46 069 Government loans 166, 620 129, 651 Advances to State and to Other assets _ __ _ 8,447 11,316 government bodies 40 402 41 225 Note circulation 171 696 134 928 Other loans and discounts 87 015 93 305 Deposits . 62, 356 53,644 Other assets 107,697 65?, 022 Other liabilities 21,127 24,114 Deposits 124 215 99 412 Bank of Portugal (millions of Other liabilities.... _ _ 218,713 196 892 escudos): Central Bank of Venezuela (thou- Gold 3 1 291 923 sands of bolivares): Other reserves (net) 1 262 448 Gold 124 304 124 304 123 805 Non-reserve exchange 1,552 151 Foreign exchange (net)._ 31,163 35, 789 31,148 Loans and discounts 367 472 Credits to national banks 38, 997 38, 997 38, 000 Government debt 1,031 1,033 Other assets. 9 546 8 160 7 567 Other assets 805 1 643 Note circulation— Note circulation 3,313 2 684 Central Bank 84 892 83 289 79 385 Other sight liabilities 2,355 1,009 National banks . 77,107 81, 464 85, 978 Other liabilities 638 978 Deposits 33 194 34 509 27 720 National Bank of Rumania (mil- Other liabilities 8,816 7,988 7,437 lions of lei): National Bank of the Kingdom of Gold4 33, 673 33, 605 31, 930 Yugoslavia (millions of dinars): (Feb.)i Special exchange accounts._ __ _ 14, 769 12, 699 5,083 Gold 2,790 2 380 Loans and discounts 30, 846 30,102 25, 270 Foreign exchange 909 518 Special loans 5 571 579 798 Loans and discounts- 1,686 1 632 Government debt 9,609 9,608 8,971 Government debt 3,061 3,073 Other assets._ 36, 713 31,164 14,102 National defense bills 7,128 5 155 Note circulation 87,163 81, 861 62, 342 Other assets 3,465 2,913 Demand deposits 26, 395 23, 574 13,093 Note circulation 13 973 12 403 Other liabilities 12, 624 12, 323 10, 719 Other sight liabilities 3, 510 2, 464 South African Reserve Bank (thou- Other liabilities 1 555 805 sands of pounds): Bank for International Settle- Gold 52, 926 52, 255 38, 081 ments (thousands of Swiss gold Foreign bills 925 836 745 francs6): Other bills and loans 2 13 4 Gold in bars 28 281 28 281 26 604 Other assets 43 231 44, 478 35, 367 Cash on hand and on current Note circulation 27,179 23, 807 22, 771 account with banks 39, 072 36, 862 31, 674 Deposits 65 699 69, 357 46,663 Sight funds at interest 16 411 16 310 14 943 Other liabilities 4,206 4,417 4,764 Undiscountable bills and accept- Bank of Sweden (millions of ances (at cost) 140, 891 142,113 145,318 kronor): Time funds at interest. . 21,008 22, 307 21,415 Gold 422 417 335 Sundry bills and investments 220, 543 220, 643 216,215 Foreign assets (net) .__ _ 861 858 753 Other assets 54 52 2 381 Domestic loans and investments. 765 707 709 Demand deposits (gold) 22, 951 22, 981 14, 724 Other assets ______ ._ 878 898 929 Short-term deposits (various Note circulation 1,495 1,440 1,470 currencies): Demand deposits.. __ __ 731 737 361 Central banks for own ac- Other liabilities 699 702 895 count _ 17, 855 17, 963 20, 929 Other 4,114 4,780 2,804 Long-term deposits: Special accounts 229, 001 229, 001 229, 001 Other liabilities _ __ 192,336 191, 841 191,092 1 Latest month for which report is available for this institution. 2 Figure not available. 3 On Oct. 16, 1940, gold revalued on basis of average cost. * Gold revalued Apr. 1, 1941, at 0.0047 gram fine gold per leu. 5 Agricultural and urban loans in process of liquidation. 6 See BULLETIN for December 1936, p. 1025. NOVEMBER 1941 1201 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MONEY RATES IN FOREIGN COUNTRIES DISCOUNT RATES OF CENTRAL BANKS [Per cent per annum] Central bank of— 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 d w en e- S l w a e n r i - t d z- b C an e k n tr o a f— l R O 3 a c 1 t t e . eff D ec a t t i e ve b C an e k n tr o a f— l R O 3 a c 1 t t e . ef D fe a ct t i e ve Albania Mar. 21,1940 Japan 3.29 Apr. 7,1936 In effect Oct. 2, Argentina Mar. 1,1936 Java 3 Jan. 14,1937 1936... 2 3 4 2 3 2 Belgium 2 2 Jan. 25,1940 Latvia 5 Feb. 17,1940 Oct 9 Bohemia and Lithuania.. 6 July 15,1939 Oct 16 2 Moravia Oct. 1, 1940 Mexico 4 Jan. 2,1941 Oct 20 2y 2 Nov. 26 Dec 3 2 Jan 28 1937 4 Bolivia 6 Nov. 8,1940 Netherlands June 27, 1941 June 15 6 British India. 3 Nov. 28,1935 New Zea- July 7 5 Bulgaria 5 Dec. 1, 1940 land iM July 26, 1941 Aug 4 4 Canada Mar. 11,1935 Norway May 13, 1940 S N e o p v t . 1 3 3 3 3 H C C h o i l l o e m bia . . 3-4>| J D u e l c y . 1 16 8 , , 1 1 9 9 3 3 3 6 P Po er r u tugal 5 A M u a g r . . 31 1 , , 1 1 9 9 4 4 1 0 May 10, 1938 4 4 May 13 2M May 30 3 Sept 28 3 Denmark 4 Oct. 16,1940 Rumania 3 Sept. 12,1940 Oct. 27 2H Ecuador 7 May 26,1938 South Africa 3 June 2,1941 Nov 25 El Salvador.. 3 Mar. 30,1939 Spain 4 i Mar. 29,1939 Jan 4, 1939 2 Estonia Oct. 1,1935 Sweden 3 May 29,1941 Apr. 17 4 Finland. 4 2 Dec. 3,1934 Switzerland. Nov. 26,1936 May 11 3 July 6 2H Aug 24 4 Aug. 29 3 France Mar. 17, 1941 Turkey 4 July 1,1938 Sept. 28 3 Germany.. __ Apr. 9,1940 United King- Oct. 26 2 Greece 5 2 July 14,1941 dom 2 Oct. 26,1939 Dec 15 3 Hungary 3 Oct. 22,1940 U. S. S. R... 4 July 1,1936 Jan. 25, 1940 2 Italy May 18,1936 Yugoslavia . 5 Feb. 1,1935 Apr. 9 3H May 17 vy Mar. 17, 1941 1H 2 i Not officially confirmed. May 29 3 NOTE.—Changes since Sept. 30: none. June 27 In effect Oct. 31, 1941.... 2 IK 2 2H 3 OPEN MARKET RATES [Per cent per annum] Switzer- United Kingdom Germany Netherlands Sweden land Month ac 3 B c a m e n p o k ta n e n t r h c s s ' es 1 3 T r m e b a o i s l n l u s t r h y s Da m y o -t n o e - y day o a B n l l a o d n w e k p a e o n r s c s i e ' ts d P is r r c i a v o t a e u t n e t Da m y o -t n o e - y day d P is r r i c a v o te a u t n e t 1 M m o fo n o r e n y th m u L p o o n a to t n h s 3 s d P is r r c i a v o t a u e t n e t 1929—Aug.. 5.47 5.48 4.35 7.18 7.42 5.06 4.68 3.33 1930—Aug.. 2.21 2.17 1.85 3.24 3.73 1.83 1.63 1.75 1931—Aug.. 4.28 4.21 3.59 i 8.92 i 9.15 1.30 1.22 4-6 1.98 1932—Aug.. .74 .60 .73 4.50 5.82 .37 1.00 4-6 1.50 1 1 9 9 3 3 4 3 — — A A u u g g . . . . . .7 4 9 1 . . 3 7 0 4 . . 6 8 2 1 3 3 . . 8 7 7 5 4 4 . . 9 7 4 2 1 . .1 7 1 5 1 1. . 0 0 0 8 3-53 1 1 . . 5 5 0 0 1935—Aug. .60 .58 .75 3.00 3.06 4.78 4.72 Yry 2.47 1936—Aug.. .55 .53 .75 2.88 3.01 1.29 1.20 23-1-5 2.25 1937—Aug. .55 .52 .75 2.88 2.85 .13 .53 2H-5 1.00 1938—Aug.. .53 .51 .75 2.88 2.51 .13 .50 2H-5 1.00 1939—Aug.. 1.58 1.92 1.35 2.75 2.50 1.03 1.53 2^-5 1.00 1940—Aug.. 1.03 1.02 1.00 2.31 1.77 3.00 1.50 1940—Sept. 1.03 1.03 1.00 2.25 2.03 2.25 2.68 1.50 Oct.. 1.03 .02 1.00 2.25 1.87 2.25 2.75 1.31 Nov. 1.03 .02 1.00 2.25 1.93 2.25 2.75 1.25 Dec. 1.03 .01 1.00 2.25 1.95 2.25 2.75 1.25 1941—Jan.. 1.03 .01 1.00 2.25 1.73 2.25 2.75 1.25 Feb.. 1.03 .02 1.00 2.25 1.68 2.25 2.75 1.25 Mar. 1.03 .01 1.00 2.25 1.83 2.07 2.75 1.25 Apr.. 1.03 .01 1.00 2.25 1.67 2.06 2.75 1.25 May 1.03 .00 1.00 2.25 1.93 2.36 3-5^ 1.25 June. 1.03 .00 1.00 2.13 1.88 2.25 3-5H 1.25 July. 1.03 .00 1.00 2.13 1.88 2.25 3-5H 1.25 Aug. 1.03 1.00 1.00 3-534 1.25 1 Based on data for part of month only 2 No figures available. ' NOTE.—For figures for other countries and references to explanation of tables see BULLETIN for Septembar 1940, p. 1018. 1202 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

COMMERCIAL BANKS United Kingdom * Assets Liabilities (Fi p g o u u re n s d s I n s m te i r l l l i i n o g n ) s of re C se a r s v h es M c n a o s o l h n l t o e i a y c r n t e d at B co il u ls n t d e i d s- T re d r c e e e p a i o s p u s t i s r t y J Se t c ie u s ri- L cu o s a e t n r o s s m t - o a O s t s h e e ts r Total D D e e m po a s n i d ts » Time » lia O b t i h li e ti r es 10 London clearing banks 1932—December. 207 127 408 472 778 208 1,983 991 963 216 1933—December. 213 119 311 565 740 237 1,941 1,015 900 244 1934—December. 216 151 255 594 759 247 1,971 1,044 910 251 1935—December. 221 159 322 605 784 231 2,091 1,140 924 231 1936—December. 236 187 316 630 2,238 (4) 232 11 London clearing banks 5 1936—December. 244 195 322 660 890 249 2,315 1,288 1,012 245 1937—December.. 244 163 300 635 984 256 2,330 1,284 1,026 252 1938—December.. 243 160 250 635 971 263 2,254 1,256 997 269 1939—December. 274 174 334 609 1,015 290 2,441 ,398 1,043 256 1940—September. 144 401 92 697 948 287 2,597 ,570 1,027 260 October 270 137 373 180 723 948 284 2,661 L, 635 1,026 254 D N e o e v e e m m b b e e r r . . 2 3 8 2 5 4 1 15 4 9 0 3 2 3 6 9 5 2 3 3 1 6 4 7 7 4 7 3 1 9 9 4 2 1 4 2 2 7 9 4 3 2 2 , , 7 80 0 0 2 L , , 6 7 7 1 70 1 1 , , 0 0 3 3 1 0 2 2 5 5 6 0 1941—January _._. 279 131 269 341 789 926 269 2,757 L, 729 1,027 247 February.. 284 128 210 330 814 915 272 2,709 L, 696 1,013 243 March 132 194 374 821 922 276 2,764 L, 728 1,036 242 April 137 188 461 820 897 274 2,829 L, 769 1,060 247 May 293 128 173 469 848 889 273 2,824 ,789 1,035 249 June 311 143 193 482 880 874 311 2,946 ,870 1,075 248 July 306 139 275 476 902 866 267 2,991 L, 898 1,093 240 August .__ 316 140 266 469 935 850 264 2,997 :,909 1,088 242 Assets Liabilities Canada Entirely in Canada Se lo c a u n r s ity a D d e a p o e s x i c ts lu p d d a e in y p g a o b si l i t e n s t i e n r b C a a n n k fig (1 u 0 r e c s h a in rt e m re il d l io b n a s n k o s f . Ca E n n a d d i o a f n m do o l n la th rs) re C se a r s v h es S l e o c a u n r s ity an O lo d t a h n d e i s r s- a a f n o f b d r d r r o e u o i m e n g a e d n t Se t c ie u s ri- O as t s h e e ts r ci N r ti c o o u t n l e a- Total Demand Time l O ia t t i b e h i s e li r counts banks 1932— December... 211 103 1,104 155 778 500 115 1,916 538 821 1933—December.. 197 106 1,036 134 861 482 121 1,920 563 775 1934—December... 228 103 977 155 967 491 124 2,035 628 761 1935—December... 228 83 945 141 1,155 529 111 2,180 694 789 1936—December.. 240 114 791 161 1,384 554 103 2,303 755 837 1937—December... 255 76 862 102 1,411 575 2,335 752 850 1938—December... 263 65 940 166 1,463 535 2,500 • 840 843 1939—December... 292 53 1,088 132 1,646 612 85 2,774 1,033 963 1940—September.. 319 37 1,102 178 1,563 529 2,800 1,145 841 October 310 41 1,138 177 1,520 526 2,778 1,178 845 November.. 313 41 1,128 174 1,513 514 2,758 1,132 837 December.. 323 40 1,108 159 1,531 570 2,805 1,163 846 1941—January... 312 36 1,092 164 1,677 522 2,873 1,205 851 February.. 293 34 1,104 170 1,788 531 1,302 850 March 296 35 1,115 178 1,766 621 2,972 1,270 858 April 325 31 1,109 189 1,820 544 3,064 1,356 877 May 321 29 1,132 183 1,812 537 3,045 1,350 889 June 288 33 1,292 191 1,688 575 3,075 1,608 913 July 314 34 1,279 188 1,681 559 3,068 1,579 907 August 299 35 1,255 190 1,698 553 3,031 1,509 919 Assets Liabilities France (4 large b in a n m ks il . l io E n n s d o f o f f r m an o c n s t ) h figures re C se a r s v h es D b u a e n f k r s om B co il u ls n d te i d s- Loans Other Total D D e e m po a s n i d ts Time a a c O n c w c e e p n s t- lia O b t i h li e t r ies 1932—December. 9,007 1,766 22,014 7,850 1,749 37,759 36, 491 295 4,331 1933—December. 5,870 1,416 19, 848 8,309 1,827 32, 635 31,773 862 273 4,362 1934—December. 5,836 1,421 18, 304 8,159 1,717 30,943 30,039 904 193 4,301 1935—December 3,739 2,484 16,141 8,025 1,900 27, 553 694 337 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 33,042 537 721 4,484 1939—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 March«... 4,110 3,920 34,123 7,499 1,961 46, 608 46,064 544 1,105 3,901 1 Through August 1939, averages of weekly figures; beginning September 1939, end-of-month figures, representing aggregates of figures reported by individual banks for days, varying from bank to bank, toward the end of the month. 2 Represents six-month loans to the Treasury at 1% per cent, callable by the banks in emergency under discount at the bank rate. 3 Through December 1937, excludes deposits in offices outside England and Wales which are included in total. 4 Beginning 1936, figures on this basis available only for all 11 banks—see footnote 5. & District Bank included beginning in 1936. 6 No figures available since March 1940. NOTE.—For other back figures and explanation of tables, and for figures for German commercial banks, see BULLETIN for August 1939, p. 699; June 1935, pp. 388-390; and October 1933, pp. 641-646. NOVEMBER 1941 1203 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] Argentina Australia Brazil (milreis) Canada (dollar) Chile (peso) (peso) (pound) Bel- British Bul- China Year or month Official S E p x e p c o i r a t l Official Free ( g b i e u lg m a) Official Free ( I r n u d p i e a e) g (l a e r v ia ) Official Free Official Export S ( h y h a u a n i a ) g n - 1934 33. 579 400. 95 23. 287 8. 4268 37.879 1.2852 101. 006 10.1452 34.094 1935 32 659 388 86 18 424 8.2947 36 964 1. 2951 99. 493 5.0833 36. 571 1936 33 137 395. 94 16.917 8.5681 5. 8788 37. 523 1. 2958 99. 913 5.1240 29.751 1937 32. 959 393.91 16. 876 8.6437 6.1983 37. 326 1. 2846 100.004 5.1697 4.0000 29. 606 1938 32 597 389. 55 16. 894 5.8438 36. 592 1. 2424 99. 419 5.1716 4. 0000 21. 360 1939 30. 850 353. 38 16. 852 6.0027 5.1248 33. 279 1.2111 96.018 5.1727 4.0000 11. 879 1940 29 773 322.80 305.16 16. 880 6. 0562 5. 0214 30.155 90. 909 85.141 5.1668 4. 0000 6.000 1940—Oct 29 773 322. 80 321. 29 6. 0575 5. 0153 30.170 90. 909 86. 318 5.1680 4. 0000 5 682 Nov 29,773 322. 80 321. 57 6.0575 5. 0156 30.166 90. 909 86. 922 5.1663 4.0000 5845 Dec 29 773 322. 80 321. 50 6. 0575 5. 0169 30.178 90. 909 86. 563 5.1665 4. 0000 5.690 1941—Jan 29 773 322 80 321 50 6. 0575 5 0560 30 148 90. 909 84.801 5.1674 4. 0000 5.391 Feb 29 773 322.80 321.11 6.0575 5.0604 30.140 90. 909 83. 687 5.1663 4. 0000 5.424 Mar 29. 773 23. 704 322. 80 321. 30 6.0575 5. 0599 30.139 90. 909 84. 981 5.1660 4. 0000 5.358 Apr. 29. 773 23. 704 322. 80 320. 70 6.0575 5.0600 30.129 90. 909 87. 651 5.1660 4.0000 5.190 May 29 773 23 704 322. 80 321.19 6. 0575 5. 0600 30. 129 90.909 87. 421 5.1660 4. 0000 5.255 June 29.773 23. 704 322. 80 321. 25 6. 0575 5. 0598 30.129 90. 909 88.183 5.336 July 29 773 23 704 322 80 321 31 6.0575 5 0616 30 128 90 909 88. 271 5.243 Aug 29 773 23 704 322. 80 321. 28 6. 0575 5. 0646 30.130 90. 909 88.961 Sept 29. 773 23. 704 322. 80 321. 33 6. 0575 5. 0616 30.137 90. 909 89.134 Year or month C (p o b e l i s o a o m ) - ( C s k l z o o e v r c u a h n k o a i - a ) ( m D kr e a o n r n k - e) (m l F k a in a a n - r ) d k- F (f r r a a n nc ce ) ( m m r G e a a i e c r n r k h y - ) s- G (d m r r e a a e c ) c h e - ( H E do o o l n n la g g r) ( H p g e a u n r n g y - o) ( I l t i a r l a y ) J ( a y p e a n n ) M (p e e x so ic ) o ( N g l e u a t i n h ld d e e s r r , ) Z (p N e o a e u l w a n n d d ) 1934 _ 61. 780 4. 2424 22. 500 2. 2277 6. 5688 39. 375 .9402 38. 716 29. 575 8. 5617 29. 715 27. 742 67.383 402. 46 1935 56.011 4.1642 21. 883 2.1627 6.6013 40. 258 .9386 48. 217 29. 602 8.2471 28. 707 27. 778 67. 715 391. 26 1936 57. 083 4. 0078 22.189 2.1903 6.1141 40. 297 .9289 31.711 29. 558 7. 2916 29. 022 27. 760 64. 481 398. 92 1937 56. 726 3. 4930 22.069 2.1811 4.0460 40. 204 .9055 30. 694 19. 779 5. 2607 28. 791 27. 750 55. 045 396. 91 1938.. . 55. 953 3. 4674 21. 825 2. 1567 2. 8781 40.164 .8958 30. 457 19. 727 5. 2605 28. 451 22.122 55.009 392. 35 1939 57.061 3. 4252 20. 346 1.9948 2. 5103 40. 061 .8153 27. 454 19. 238 5.1959 25. 963 19. 303 53.335 354.82 1940 57. 085 19. 308 1. 8710 2. 0827 40. 021 .6715 22. 958 18. 475 5. 0407 23. 436 18. 546 53.128 306. 38 1940—Oct. 56. 985 1.9652 39.975 .6602 23. 077 19. 364 5. 0389 23.439 20. 331 322. 55 Nov 57 000 1 9482 39.983 23. 396 19. 505 5. 0396 23. 439 20. 400 322.82 Dec. 57.132 1. 9472 39. 982 23. 585 19.770 5. 0439 23. 439 20. 448 322. 75 1941—jan 57 146 2 0104 39 979 23 648 19 770 5 0432 23 439 20 504 322.75 Feb 56 987 2 0101 39.969 24.142 19.770 5. 0422 23. 439 20. 524 322. 36 Mar. 56. 985 2. 0100 39. 960 24. 421 19. 770 5. 0452 23. 439 20. 529 322. 55 Apr. 57. 011 2. 0100 39. 962 24. 393 5. 0475 23. 439 20. 538 321. 96 May 57 022 2 0100 39. 968 24 285 5 0805 23. 439 20 537 322.45 June 56 982 2 0098 39 970 24 372 5 2621 23 439 20 533 322. 51 July 56 981 24 524 23.439 20 542 322. 57 Aug 56 982 25.110 20. 538 322. 54 Sept 56. 982 25.099 20. 542 322. 60 United Kingdom Uruguay Year or month N (k o r r o w n a e y ) P (z o l l o a t n y d ) P c o u g (e r d a s t l o - u ) - R ( n l u e i m u a ) a- (p S A o o fr u u i n t c h d a ) ( S p p es a e in ta) ( S S m d e t o r e t a l t n l l i a t e t s r s - ) ( S k d r w e o n e n - a) e S (f r w r l a a i n t n c z d - ) Offic ( i p a o l und F ) ree Con- (pe N so o ) n-con- ( Y s d l i a u n v g a i e a r - ) trolled trolled 1934 25 316 18. 846 4. 6089 1.0006 498. 29 13.615 59. 005 25. 982 32. 366 503. 93 79 956 2.2719 1935.. _ 24. 627 18. 882 4. 4575 .9277 484. 66 13. 678 57.173 25. 271 32. 497 490.18 80. 251 2. 2837 1936 24 974 18. 875 4. 5130 .7382 491. 65 12.314 58. 258 25. 626 30.189 497. 09 79.874 2 2965 1937 24. 840 18. 923 4. 4792 .7294 489. 62 6.053 57. 973 25. 487 22. 938 494. 40 79. 072 2. 3060 1938 24 566 18. 860 4. 4267 .7325 484.16 5.600 56. 917 25.197 22. 871 488.94 64 370 2 3115 1939 23. 226 18. 835 4. 0375 .7111 440.17 10:630 51.736 23. 991 22. 525 443. 54 62. 011 36. 789 2. 2716 1940 22. 709 3.7110 .6896 397. 99 9.322 46. 979 23. 802 22. 676 403.50 383.00 65. 830 37.601 2. 2463 1940_Oct. 3.9841 398.00 9.130 47.101 23.814 23.148 403. 50 403. 26 65. 830 37.629 2. 2436 Nov 3 9849 398. 00 9.131 47.100 23. 818 23. 202 403. 50 403. 56 65. 830 38. 994 2. 2409 Dec 3. 9915 398.00 9.132 47.100 23.824 23 201 403 50 403 50 65 830 39 480 2 2407 1941—Jan 3. 9986 398. 00 9.130 47.089 23.826 23 220 403 50 403 42 65 830 39 491 2 2397 Feb. 4. 0069 398.00 9.130 47. 094 23.829 23. 217 403. 50 402. 97 65 830 39 649 Mar. 4. 0039 398. 00 9.130 47.106 23. 824 23. 210 403. 50 403.19 65.830 39. 566 Apr. 4. 0009 398.00 9.130 47.107 23. 825 23. 201 403. 50 402. 48 65. 830 40. 065 May 4 0017 398. 00 9.130 47.107 23.839 23. 203 403. 50 403.10 65. 830 41.161 June 4. 0026 398. 00 9.130 47.138 23.836 23. 206 403. 50 403 16 65 830 42 706 July 398 00 47 160 403. 50 403. 23 65. 830 43. 789 Aug 398. 00 47.160 403.50 403.18 65. 830 43. 745 Sept. 398. 00 47.160 403. 50 403. 27 65. 830 43. 836 NOTE.—Developments affecting averages during 1941: Special export rate for Argentina first reported in addition to official rate on Mar. 27; nominal. No rates certified: Yugoslavia—since Jan. 28; Hungary—since Mar. 12; Chile—since May 21; Finland, Germany, Italy, Portugal, Spain, Sweden, and Switzerland—since June 14; China and Japan—since July 25. Changes in nominal status (noted only if affecting quotations for at least five days a month): none. For further information concerning the bases and nominal status of exchange quotations, and concerning suspensions of quotations prior to 1941, see BULLETIN for February 1941, p. 183; February 1940, p. 178; September 1939, p. 831; March 1939, p. 236; and March 1938, p. 244. 1204 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

PRICE MOVEMENTS IN PRINCIPAL COUNTRIES WHOLESALE PRICES—ALL COMMODITIES [Index numbers] United States Year or month (1926=100) 1326 100 1930 86 1931 „ 73 1932 65 1933. . 66 1934 75 1935 80 1936 1937 1938 1939- 1940 1940—September- October., November December.. 1341—January February March April May . June July August September. _ oooot^ i-H CO O" United Nether- Switzer- Canada Kingdom France Germany Italy Japan lands Sweden land (October (1926-30 (July 1914 (1926=100) (1930=100) (1913=100) (1913=100) (1928=100) 1900=100) =100) (1935=100) =100) 100 1124 695 134 237 106 i 126 144 87 100 554 125 85 181 90 i 103 126 72 88 500 111 75 153 76 i 94 110 67 86 427 97 70 161 65 192 96 67 86 398 93 63 180 63 190 91 72 88 376 98 62 178 63 196 90 72 89 338 102 68 186 62 100 90 75 94 411 104 76 198 64 102 96 85 109 581 106 89 238 76 114 111 79 101 653 106 95 251 72 111 107 77 75 103 2 681 107 3 97 278 74 115 111 79 83 137 110 311 <88 146 143 78 83 141 111 308 148 152 79 83 143 111 310 154 156 80 84 147 111 310 158 161 80 84 149 111 312 159 164 81 85 150 111 313 162 167 81 85 150 112 317 165 168 82 86 151 112 322 169 170 83 87 151 112 324 170 175 85 89 151 112 326 171 181 87 90 152 P112 331 173 184 89 91 153 P112 329 173 188 90 92 153 330 174 P189 92 154 330 p Preliminary. 1 Approximate figure, derived from old index (1913=100). 2 Average based on figures for 8 months; no data available since August 1939, when figure was 674. 3 Average based on figures for 7 months; no data available since July 1939, when figure was 96. 4 Average based on figures for 5 months; no data available since May 1940, when figure was 89. Sources.—See BULLETIN for January 1941, p. 84; April 1937, p. 372; March 1937, p. 276; and October 1935, p. 678. WHOLESALE PRICES—GROUPS OF COMMODITIES [Indexes for groups included in total index above] United States United Kingdom France Germany (1926=100) (1930=100) (1913=100) (1913=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 ia u u l s c - ts p A r t o g u d r r i u c a u c l t l s - P s r io o n v s i- a p t f r I n i r i n n d o a i d l d s s h u u r e e a s c m d - w ts i- p tr I r i i n o s a d d h l u e u f d i s c n - ts - 1926 100 100 100 581 793 129 132 130 l£0 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 97 106 i 653 i 707 108 193 95 126 1940... _ 68 71 83 133 138 111 99 129 1940—September 66 72 82 140 142 111 99 131 October 66 71 84 143 142 110 99 131 November 68 73 84 143 149 111 99 131 December 70 74 84 145 150 111 100 131 1941 Januarv 72 74 84 145 152 111 100 132 February 70 74 84 144 153 111 100 133 March 72 75 85 144 154 111 100 133 April 74 78 86 144 154 112 100 133 May 76 80 87 144 155 113 100 132 June 82 83 89 145 156 114 100 132 July 86 85 90 146 157 P114 P100 P132 August 87 87 91 146 157 P114 PIOO P132 September 91 90 92 147 p Preliminary. 1 Average based on figures for 8 months. 2 No data available since August 1939, when figures were 616 and 726 respectively for France, and 92 for Germany. Sources.—See BULLETIN for March 1935, p. 180, and March 1931, p. 159. NOVEMBER 1941 1205 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] Y m e o a n r t o h r ( U S = 19 n t 1 a 3 i 0 5 t t 0 e e - ) 3 d s 9 (J U = K u d n 1 l i o y i 0 n m t l 0 g e 9 ) - d 14 (J F = u r 1 l a y 0 n l 0 9 c ) 1 e 4 ( = m 1 G 9 1 a 1 e 0 3 n r 0 - y - ) 14 N ( = 1 l e a 9 1 t 1 n 0 h 1 d 0 e - s ) 1 r 3 - (J S e = u r w 1 n l 0 e a it l 0 n 9 z ) d - 14 Y m e o a n r t o h r ( U = S 19 n t 1 a 3 0 i 5 t t 0 e e - ) 3 s d 9 (J U K u = d n l i o y 1 i n m t 0 l g 9 e 0 - d 1 ) 4 F = ( r 1 1 a 9 0 n 3 0 c 0 ) e ( = 1 m G 9 1 a 1 e 0 3 n r 0 - y - ) 14 N ( = 1 l e a 9 1 t 1 n 0 h 1 d 0 e - s ) 1 r 3 - (J e S = u r w 1 n la 0 e it n 0 l z 9 ) d - 14 1932 87 126 536 116 119 125 1932 98 144 91 121 141 138 1933 __ 84 120 491 113 120 117 1933 92 140 87 118 139 131 1934 94 122 481 118 124 115 1934 ._ 96 141 83 121 140 129 1935 100 125 423 120 118 114 1935 98 143 78 123 136 128 1936 101 130 470 122 120 120 1936 . . 99 147 86 125 U32 130 1937 105 139 601 122 127 130 1937 103 154 102 125 137 137 1938 98 141 702 122 130 130 1938 101 156 117 126 139 137 1939 95 141 a 742 123 130 132 1939 99 158 3 122 126 140 138 1940 97 164 128 4140 146 1940 100 184 130 6148 151 1940-September 97 166 130 149 1940-September 100 187 132 153 October 96 169 127 152 October _ 100 189 130 157 November 96 172 126 157 November 100 192 130 159 December 97 173 127 158 December 101 195 131 160 1941-January... 98 172 127 160 1941-January __ 101 196 132 163 February _ 98 171 127 160 February 101 197 132 163 March 98 169 128 161 March 101 197 132 164 April 101 170 129 167 April 102 198 132 169 May 102 171 172 May 103 200 171 June... ._ 106 170 178 June 105 200 175 July 107 167 179 July 105 199 177 August 108 167 166 August 106 199 September 166 September 199 1 Revised index from March 1936 (see BULLETIN for April 1937, p. 373). 2 Average based on figures for 8 months; no data available since August 1939, when figure was 749. * Average based on two quarterly quotations; no data available since May 1939, when figure was 123. 4 Average based on figures for 3 months; no data available since March 1940, when figure was 141. 6 Average based on figures for 5 months; no data available since May 1940, when figure was 149. 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 d S r e n t i a r c i i e t t v e e ) e s d i d ( 1 K D 9 U i 2 e n n 1 c g = i e d t 1 m e o 0 d m b 0 e ) r (1 F 91 r 3 a = n 1 ce 00) G (a e p v r r e m i r c a a e g n ) e 2 y N la e n th d e s r 3 - ( U 1 S = 9 n t 3 a 1 i 5 0 t t e - e 0 3 d s ) 9 K U in n g it d e o d m (1 F 9 r 2 a 6 n = c 1 e 00) Germany (1 N 9 l 3 e a 0 t n h = d e 1 s r 0 - 0) Number of issues. _ 10 87 36 2 139 8 402 278 300 4 100 1926 90.1 110.0 57.4 105.6 100.0 100.0 100.0 1932 84.4 113.2 88.6 5 67.1 94.8 51.2 67.9 105.2 550.3 46 1933 91.2 119.7 81.3 82.5 105.3 67.0 78.6 99.6 61.7 52 1934 98.2 127.5 82.1 90.7 113.4 76.6 85.7 83.3 71.1 55 1935 105.5 129.9 83.5 6 95.1 107.8 82.9 86.3 79.7 82.9 55 1 1 1 9 9 9 3 3 3 7 8 6. .. i 1 1 1 0 1 10 9 1 . . . 2 5 1 1 1 1 2 3 2 4 1 1 . . . 6 2 3 7 7 5 6 . . 1 3 9 9 9 8 5 9 . . . 7 8 9 3 1 1 10 0 0 1 5 9 . . . 9 1 8 1 1 8 1 1 8 7 7 . . . 2 5 5 9 9 8 7 6 0 . . . 0 3 8 9 7 7 7 . . 4 2 1 1 9 0 0 1 2 0 . . . 6 6 1 1 9 6 0 0 5 4 . . 8 2 1939 113.8 112.3 77.3 99.0 90.9 94.2 75.9 89.7 94.1 89.7 1940 115.9 118.3 83.9 100.7 7 77.9 88.1 70.8 98.3 114.6 8 95.0 84.7 1940—September. _ 116.5 117.9 101.0 85.5 66.2 120.8 94.3 October 117.2 119.2 101.7 80.7 86.0 68.1 125.1 104.1 November... 118.0 119.9 101.9 80.0 86.7 70.2 127.7 112.7 December... 117.7 121.0 101.4 79.8 84.9 70.2 128.0 116.1 1941—January 117.7 122.2 102.2 80.1 85.0 71.8 131.5 120.0 February 116.7 121.9 102.8 74.3 80.1 70.5 133.0 113.4 March 116.9 122.5 102.8 73.2 80.3 69.9 228.3 131.1 115.1 April 116.8 121. 7 100.5 103.0 78.5 77.9 69.7 269.5 131.0 126.5 May 117.0 122.7 98.4 103.2 82.1 77.1 70.4 274.6 133.2 121.6 June 117.7 122.9 79.5 70.7 July... 118.7 124.7 83.2 72.5 August 118.5 124.5 83.2 73.8 September _. 118.1 83.6 1 Figures represent calculated prices of a 4 per cent, 20-year bond offering a yield equal to the monthly average yield for 10 high-grade corporate bonds for the series beginning 1937 and for a varying number of high-grade bonds for the series prior to that date. The yearly average for 1937 is the same for both series. Source: Standard and Poor's Corporation. 2 Since April 1, 1935, the 139 bonds included in the calculation of the average price have all borne interest at ±y2 per cent. The series prior to that date is not comparable to the present series, principally because the 169 bonds then included in the calculation bore interest at 6 per cent. 3 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 Jan. 1937, Jan.-Mar. 1937=100; average yield in base period was 3.39 per cent. 4 This number, originally 329, has declined as the number of securities eligible for inclusion in the index has diminished. In May 1941, it was down to 287. 5 Average May-Dec, only; exchange closed Jan. 1-Apr. 11. 6 Average Apr.-Dec. only—see note 2. Average Jan.-Mar. on old basis was 95.9. 7 Average based on figure s for 7 months; no data available May-September. 8 Average based on figures for 9 months; no data available May-July. 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. 1206 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. SZYMCZAK 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 WYATT, 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 0. E. FOULK, Fiscal Agent JOSEPHINE E. LALLY, Deputy Fiscal Agent FEDERAL OPEN MARKET COMMITTEE FEDERAL ADVISORY COUNCIL MARRINER S. ECCLES, Chairman Boston District CHAS. E. SPENCER, JR. ALLAN SPROUL, Vice Chairman New York District GEORGE L. HARRISON CHESTER C. DAVIS Vice President ERNEST G. DRAPER Philadelphia District WILLIAM F. KURTZ M. J. FLEMING Cleveland District B. G. HUNTINGTON HUGH LEACH JOHN K. MCKEE Richmond District ROBERT M. HANES JOHN N. PEYTON Atlanta District RYBURN G. CLAY RONALD RANSOM Chicago District EDWARD E. BROWN M. S. SZYMCZAK President St. Louis District S. E. RAGLAND CHESTER MORRILL, Secretary Minneapolis District LYMAN E. WAKEFIELD S. R. CARPENTER, Assistant Secretary Kansas City District W. DALE CLARK 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 ROBERT G. ROUSE, Manager of System Open Market Account WALTER LICHTENSTEIN, Secretary NOVEMBER 1941 1207 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. R. A. Young W. W. Paddock... William Willett * New York Beardsley Ruml.... Edmund E. Day Allan Sproul L. R. Rounds R. M. Gidney Walter S. Logan J. M. Rice Robert G. Rouse John H. Williams Philadelphia.. Thomas B. McCabe Warren F. Whittier. Alfred H. Williams Frank J. Drinnen.. W. J. Davis E. C. Hill C. A. Mcllhenny 2 C. A. Sienkiewicz Cleveland.... Geo. C. Brainard. . . R. E. Klages M. J. Fleming F. J. Zurlinden Wm. H. Fletcher R. B. Hays W. F. Taylor 2 G. H. Wagner Richmond.... Robt. Lassiter W. G. Wysor Hugh Leach J. S. Walden, Jr.. . J. G. Fry R. W. Mercer Atlanta Frank H. Neely.... J. F. Porter W. S. McLarin, Jr.. Malcolm H. Bryan H. F. Conniff L. M. Clark Chicago F.J.Lewis Clifford V. Gregory. C. S. Young H. P. Preston J. H. Dillard A. J. Mulroney St. Louis Wm. T. Nardin Oscar Johnston Chester C. Davis.. F. GuyHitt 0. M. Attebery C. M. Stewart1 Minneapolis. . W. C. Coffey Roger B. Shepard. . J. N. Peyton 0. S. Powell E. W. Swanson Harry I. Ziemer 2 Kansas City.. R. B. Caldwell J. J. Thomas H. G. Leedy Henry 0. Koppang J. W. Helm 2 D. W. Woolley Dallas J. H. Merritt Jay Taylor R. R. Gilbert E. B. Stroud R. B. Coleman WT T TP-f7-o-no W. 0. Ford l San Francisco R. C. Force St. George Holden.. Wm. A. Day Ira Clerk C. E. Earhart1 WT 1\/T TTolo R. B. West 1 Cashier. 2 Also cashier. MANAGING DIRECTORS OF BRANCHES OF FEDERAL RESERVE BANKS Federal Reserve Bank of— Managing Director Federal Reserve Bank of— Managing Director New York: Minneapolis: Buffalo Branch R. M. O'Hara Helena Branch... R. E. Towle Cleveland: Cincinnati Branch B. J. Lazar Kansas City: Pittsburgh Branch P. A. Brown Denver Branch Jos. E. Olson Richmond: Oklahoma City Branch G. H. Pipkin Baltimore Branch W. R. Milford Omaha Branch L. H. Earhart Charlotte Branch W. T. Clements Atlanta: Dallas: Birmingham Branch P. L. T. Beavers El Paso Branch J. L. Hermann Jacksonville Branch Geo. S. Vardeman, Jr. Houston Branch W. D. Gentry Nashville Branch Joel B. Fort, Jr. San Antonio Branch M. Crump New Orleans Branch E. P. Paris Chicago: Detroit Branch H. J. Chalfont San Francisco: St. Louis: Los Angeles Branch W. N. Ambrose Little Rock Branch A. F. Bailey Portland Branch D. L. Davis Louisville Branch C. A. Schacht Salt Lake City Branch W. L. Partner Memphis Branch W. H. Glasgow Seattle Branch C. R. Shaw 1208 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Publication* Copies of the publications and releases listed below may be obtained from the Board of Governors of the Federal Reserve System, Washington, D. C. CURRENT RELEASES DAILY Brokers' Balances. Released about the 20th of the Foreign Exchange Rates (for previous day). month. National Summary of Business Conditions. Re- WEEKLY leased about the 18th of the month. Monday: Business Indexes. Released about the 18th of the Condition of Reporting Member Banks in Lead- month. ing Cities. Bank Debits—Debits to Deposit Accounts, except Bank Debits—Debits to Deposit Accounts, except Inter-Bank Accounts. Released between the 6th Inter-Bank Accounts. and 12th of the month. Tuesday: Foreign Exchange Rates. Released about the 1st Money Rates—Open-Market Rates in New York of the month. City. (Also monthly.) Department Store Sales—Percentage Changes by Thursday: Federal Reserve Districts and by Cities. Re- Condition of the Federal Reserve Banks. leased about the 22nd of the month. Condition of Reporting Member Banks in Central Department Store Sales—Percentage Changes by Reserve Cities. (Also included in statement Departments. Released about the end of the of Condition of Reporting Member Banks in month. Leading Cities, released on following Monday.) Department Store Sales—Index for United States QUARTERLY and Percentage Changes by Federal Reserve Member Bank Call Report. Released about two Districts. months after call date. MONTHLY SEMI-ANNUALLY Federal Reserve Bulletin. Released about the 10th Federal Reserve "Par List" (Banks upon which of the month. The subscription price is $2.00 per checks will be received by Federal Reserve Banks annum, or 20 cents per single copy, in the United for collection and credit). Released in January States (including insular possessions), Canada, and July, with monthly supplements about the Chile, Colombia, Costa Rica, Cuba, Dominican 7th of the month. Republic, Ecuador, Guatemala, Haiti, Republic ANNUALLY of Honduras, Mexico, Newfoundland (includ- List of Stocks Registered on National Securities ing Labrador), Nicaragua, Panama, Paraguay, Exchanges. Supplements issued quarterly. 25 Peru, El Salvador, Uruguay, and Venezuela. cents for list and supplements. In all other countries the subscription price is Bank Debits—Debits to Deposit Accounts, except $2.60 yearly, or 25 cents per single copy. Group Inter-Bank Accounts. Released ordinarily in subscriptions for 10 or more copies, in the United February. States, 15 cents per copy per month, or $1.50 for Annual Report, covering operations for the pre- 12 months. ceding calendar year. BOOKS The Federal Reserve System—Its Purposes and ting through 1942. 50 cents per single copy; in Functions. Obtainable in cloth cover at 50 cents quantities of 10 or more, 45 cents per copy. per copy; in paper cover without charge. 128 pages. Chart Book II, Federal Reserve Charts on In- Digest of Rulings—to October 1, 1937. Digests dustrial Production. October 1940. 224 pages. of Board rulings, opinions of the Attorney General Space for plotting through 1946. $1 per single copy; and court decisions construing the Federal Reserve in quantities of 10 or more, 85 cents per copy. Act, with compilation showing textual changes in the Act. $1.25 per copy. 683 pages. Banking Studies—Comprising 17 papers on bank- Chart Book I, Federal Reserve Charts on Bank ing and monetary subjects by members of the Board's Credit, Money Rates, and Business. New edition, staff. August 1941. 496 pages. $1.50 per single revised September 1941. 73 pages. Space for plot- copy; in quantities of 10 or more, 75 cents per copy. NOVEMBER 1941 1209 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Reserve Publications REPRINTS (From Federal Reserve BULLETIN except as stated otherwise. Partial list.) Constitutionality of Legislation Providing a Unified The Gold Stock. 2 pages. September 1940. Commercial Banking System for the United States. Measurement of Production, by Woodlief Thomas Opinion of the Board's General Counsel. 21 pages. and Maxwell R. Conklin. 16 pages. September March 1933. 1940. Supply and Use of Member Bank Reserve Funds. Explanation of analysis of sources of member bank Gold Reserves of Central Banks and Governments. reserve funds and uses to which such funds are put. 18 pages. September 1940. 31 pages. July 1935. Development of Federal Reserve Banking, by Member Bank Statistics. A discussion of the sta- M. S. Szymczak. 8 pages. December 1940. tistics compiled and published by the Board covering the operations and conditions of member banks. 28 Economic Preparedness for Defense and Post Depages. November 1935. fense Problems, by Marriner S. Eccles. 8 pages. January 1941. Summary of Provisions of State Laws Relating to Bank Reserves. 33 pages. March 1937. Special Report to the Congress, submitted De- Analyses of the Banking Structure—As of Decem- cember 31, 1940. 2 pages. January 1941. ber 31, 1935. Number, deposits, and loans and in- Economic and Monetary Aspects of the Defense vestments of banks classified by size of bank and Program, by John H. Williams. 4 pages. February town and by other factors. 33 pages. August 1937. 1941. Problems of Banking and Bank Supervision. Excerpts from the 1938 Annual Report. 33 pages. Federal Reserve Bank Lending Power not Dependent on Member Bank Reserve Balances. 2 pages. The History of Reserve Requirements for Banks in February 1941. the United States. 20 pages. November 1938. Monetary Measures and Objectives. Three state- Commodity Prices, by Frank Garfield and Clayton ments by the Board on objectives of monetary policy, Gehman. 16 pages. March 1941. on proposals to maintain prices at fixed levels through Inflation, by E. A. Goldenweiser. 3 pages. April monetary action, and on legislative proposals relat- 1941. ing to monetary measures and objectives. 8 pages. July 1937, April 1939, and May 1939. Financial Problems of Defense, by Marriner S. Revised Indexes of Factory Employment. Bureau Eccles. 11 pages. Mimeographed release, May 1, of Labor Statistics indexes adjusted for seasonal 1941. variation by Board of Governors. 32 pages, October Gold, Capital Flow and Foreign Trade. A review 1938; 10 pages, October 1939. of international trade and financial developments The Gold Problem Today, by E. A. Goldenweiser. from the outbreak of war in Europe to May 1941, 4 pages. January 1940. statements of the gold and dollar resources and ex- The Par Collection System of the Federal Reserve penditures of the United Kingdom, and the text of Banks, by George B. Vest. 8 pages. February 1940. the Lend-Lease Act and Appropriation Act pursuant thereto. 28 pages. January, February, and The Banks and Idle Money, by Woodlief Thomas. May 1941. 9 pages. March 1940. Revised Indexes of Freight-Car Loadings. 5 pages. Historical Review of Objectives of Federal Reserve June 1941. Policy, by A. B. Hersey. 11 pages. April 1940. Cheap Money and The Federal Reserve System, by Seasonally Adjusted Estimates of Nonagricultural E. A. Goldenweiser. 5 pages. May 1940. Employment. 2 pages. June 1941. Ownership and Utilization of the Monetary Gold Adjustment for Seasonal Variation, by H. C. Barton, Stock. 3 pages. May and June 1940. Jr. Description of method used at the Board in General Indexes of Business Activity, by Frank adjusting economic data for seasonal variation. 12 Garfield. 8 pages. June 1940. pages. June 1941. New Federal Reserve Index of Industrial Produc- Economic Aspects of Federal, State and Local tion. August 1940. (This reprint in process of re- Taxation, by Marriner S. Eccles. 17 pages. Mimeovision, will be available about December 1, 194.1.)graphed release, October 14, 1941. 1210 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis