Federal Reserve Bulletin, 1942-08

FEDERAL RESERVE BULLETIN AUGUST 1942 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—New Federal Reserve Legislation and1 Current Credit Situation 739-747 Law Department Amendments to Federal Reserve Act 748-749 Reserves of Member Banks—Revision of Regulation D 749~753 Federal Reserve Bank Stock 753—755 Consumer Credit: Amendments to Regulation W 755—756 Interpretations of Regulation W 756-759 Alien Property Custodian 759-761 United States Currency—Hawaiian Series 762.-764 The Nature and Size of the War Financing Program 765-767 Survey of Commercial Loans at Member Banks 768-773 Report of the American Technical Commission to Cuba 774-801 Current Events 802. National Summary of Business Conditions 803-804 Financial, Industrial, Commercial Statistics, U. S. (See p. 805 for list of tables) .... 805-851 International Financial Statistics (See p. 851 for list of tables) 851-864 Board of Governors and Staff; Open Market Committee and Staff; Federal Advisory Council 865 Senior Officers of Federal Reserve Banks; Managing Directors of Branches 866 Map of Federal Reserve Districts 867 Federal Reserve Publications (see inside of back cover) Subscription Price of Bulletin 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

FEDERAL RESERVE BULLETIN VOLUME 2.8 August 1942 NUMBER 8 NEW FEDERAL RESERVE LEGISLATION AND CURRENT CREDIT SITUATION On July 7, 1942., the President approved could not be taken for one of these classes an Act of Congress amending certain sec- of banks separately from the other. The tions of the Federal Reserve Act. These reserves of these two classes of banks may amendments are primarily designed to be influenced by different factors and may facilitate action by the Federal Reserve at times require different regulatory action. System in aiding the financing of the war. The amendment will permit separate action One amendment permits the Board to for each class of banks within the limits of change reserve requirements for banks in change permitted by the law, i.e., to not the two central reserve cities separately less than the amount required prior to 1935 from those in reserve city banks; another nor to more than twice that amount. At removes a provision of law prohibiting a present requirements for all classes of banks member bank from making loans or paying are at the maximum level permitted. dividends when its reserves are below the required minimum; and the other one RESTRICTIONS ON BANKS WITH DEFICIENT RESERVES changes the grouping of Federal Reserve Banks for electing representatives to the Another amendment repealed the pro- Federal Open Market Committee. Text of vision of law prohibiting a member bank these amendments is published in the legal from making new loans or paying divisection of this BULLETIN. dends when its reserves are below the required minimum. The Federal Reserve BROADENED POWER OVER RESERVE Act contains a provision permitting the REQUIREMENTS reserves of member banks to be checked Powers of the Board of Governors to against and withdrawn for the purpose of alter reserves required of member banks meeting existing liabilities, subject to reguagainst demand and time deposits have lations and penalties to be prescribed by the been amended so as to permit changes for Board of Governors. The purpose of this (1) member banks in central reserve cities provision, however, was to some extent or QL) member banks in reserve cities or nullified by the prohibition against the (3) member banks not in reserve or central making of new loans and the payment of reserve cities or (4) all member banks. dividends while reserves are deficient. Under the earlier provisions of the law Due to a fear of personal liability on the central reserve city banks and reserve city part of bank directors for losses sustained banks were placed in one group, and action on loans made while reserves are deficient, AUGUST 1942. 739 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REVIEW OF THE MONTH some banks, under the law as it existed ELECTION OF OPEN MARKET COMMITTEE prior to the amendment, were hesitant Under the amendment relating to the about utilizing any portion of their re- Open Market Committee, the Federal Required reserves even for a day unless they serve Bank of New York will be authorized refrained from making any new loans. to elect each year one of the five Reserve In view of the wide fluctuations that may Bank representatives. The other banks occur from day to day in the reserves of an will be regrouped to provide for one repindividual bank, banks have recently folresentative to be selected by the Boston, lowed the practice of maintaining at all Philadelphia, and Richmond Reserve Banks; times a larger volume of reserves in excess one by the Cleveland and Chicago Reserve of requirements than they actually needed Banks; one by the Atlanta, Dallas, and to meet their average requirements. Under St. Louis Reserve Banks; and one by the the law as now amended the banks are not Minneapolis, Kansas City, and San Franrestricted in making new loans or paying cisco Reserve Banks. dividends, even though their reserves are Under the previous statute one represenbelow the minimum requirements. tative was elected by the Boston and New The power of the Board of Governors to York Reserve Banks; one by Philadelphia prescribe penalties for deficiencies in re- and Cleveland; one by Chicago and St. serves remains unaffected by the amend- Louis; one by Richmond, Dallas, and Atment. On July 14/the Board amended its lanta; and another by Minneapolis, Kansas Regulation D, relating to bank reserves, to City, and San Francisco. As this arrangeconform to the change made in the law, but ment worked out in practice, the Federal the Regulation retains the provisions pre- Reserve Bank of Boston has not had its scribing penalties for deficiencies in re- president or other representative serve as serves. The text of the amended Regula- a member of the committee. He has been tion is published in the legal section of continuously an alternate to the president of the New York Bank. This situation this BULLETIN. has been unsatisfactory because it deprived Under the Board's regulation, as it has an important eastern Federal Reserve Disbeen in the past and as it remains, a member trict of the opportunity of being directly bank is not required to maintain its reserves represented on the Open Market Comat the legal minimum every day, but its mittee. This arose from the fact that it average reserves hteld over a prescribed has proved to be almost necessary for the period of time must equal or exceed the New York District to be represented at all average amount required over that period. times on the Committee. The reserve period is one week for central The Federal Reserve Bank of New York reserve and reserve city banks and a halfoccupies a unique position with respect to month for country banks. Prior to Februthe Federal Reserve System, the Treasury, ary z8, 1942., banks located in Federal and the banking system of the country. Reserve Bank and branch cities had semi- Its resources total approximately 40 per weekly reserve computation periods ending cent of the aggregate of the twelve Federal on Tuesday and Friday, respectively. Reserve Banks. It is located at the central 740 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REVIEW OF THE MONTH money market and at the principal market those cities. From March to July, excess for Government securities; its operations reserves at central reserve city banks deas fiscal agent of the United States and its clined by about 900 million dollars, while transactions with foreign governments, those at reserve city banks declined only foreign central banks and bankers, as well slightly and country banks gained excess as its operations in foreign exchange, are in reserves. Excess reserves at New York far greater volume than those of any other City banks now are less than one-third of Federal Reserve Bank. It is clearly in the those held during March and those at public interest that the Federal Open Mar- Chicago are one-quarter of the March level. ket Committee be given at all times the Whereas in March all central reserve city benefit of counsel of the Federal Reserve banks combined held 39 per cent of total Bank which is in constant touch with the excess reserves, by July their share had domestic and international money and fallen to 15 per cent, while the proportion capital markets and has had long experi- held by country banks increased from 2.5 ence in these fields. Under the new law to 37 per cent. New York will always be represented on the Committee, and each of the other DISTRIBUTION OF EXCESS RESERVES AT MEMBER BANKS [Monthly averages of daily figures] Reserve Banks will have an opportunity Central reserve for A d n i o re th ct e r r e c p h r a e n s g e e n t i a n ti o th n e . law specifies that b m a b A e n e m l k r l s - N c e i w ty ba C n h ks i- b s c e R a i r n t e v y k - e s C ba t o r n u y k n s the Reserve Bank representatives shall be York cago presidents or first vice presidents of Federal Amounts [in millions of dollars] January 1941 6,832 3,505 381 2,016 930 Reserve Banks; previously representatives January 1942 3,446 1,083 225 1,330 809 March 1942 3,147 962 255 1,190 740 were not limited to any particular officers. June 1942 2,704 556 89 1,232 827 July 1942* 2,270 280 60 1,100 830 These new provisions will be effective be- Per cent of total ginning with the election for the term com- January 1941 100 14 January 1942 100 23 mencing March i, 1943. March 1942 100 23 June 1942 100 31 July 1942* 100 37 DECLINE AND SHIFTS IN BANK RESERVES • Figures for July 1942 are preliminary estimates. Member bank reserve balances have been gradually declining since early 1941, REASONS FOR DECLINE IN RESERVES and there have also been major shifts in The principal factor accounting for the the relative distribution of these reserves decline in bank reserves has been a steady among the various classes of member banks. growth in the volume of money in circula- Excess reserves of all member banks, which tion, amounting to about 1.5 billion dollars declined from an average level of 6.8 billion since the beginning of this year. At the dollars in January 1941 to 3.4 billion same time a continued growth in bank twelve months later, averaged 1.3 billion deposits has increased the volume of rein July. quired reserves and has absorbed nearly a Most of the decline in excess reserves, as billion dollars of excess reserves. The shown in the table, has been at the banks principal offsetting influence has been openin New York City and Chicago, and in market purchases of United States Governrecent months it has been concentrated in ment securities for Federal Reserve System 741 AUGUST 1.941 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REVIEW OF THE MONTH account, which have supplied member banks sury issues in the New York District exwith 900 million dollars of additional re- ceeded net gains from other Treasury serves since the middle of April. transactions by over 1.3 billion dollars, New York City banks have lost reserves and in July net losses from this source principally as the result of the fact that the amounted to an additional xoo million Treasury raised more funds in New York dollars. To some extent these losses have by taxation and by borrowing than it spent recently been offset by Reserve System there, as shown in the accompanying chart. purchases of securities in the New York Withdrawals of currency and of bankers' market. balances, as well as increases in required Forces causing these changes in the reserves, have been of some importance volume and distribution of excess reserves over extended periods but have been rela- are likely to continue in coming months. tively minor factors in the drain of reserves Expansion in incomes, particularly of perfrom New York banks since early spring. sons without bank accounts, will result in In this movement Treasury transactions a growing demand for currency; and the have been a particularly heavy factor. growth in deposits arising from bank During the second quarter of this year losses purchases of Government securities will add of reserves due to purchases of new Trea- to the amount of required reserves needed. As long as New York City banks are heavy FACTORS OF GAINS AND LOSSES purchasers of Government securities funds OF RESERVE FUNDS BY NEW YORK CITY BANKS are likely to flow from that center to the B 7 IL .5 LIONS OF DOLLARS • WEEKLY BILLIONS OF Da rest of the country. Consequently, unless ^ TOTAL RESERVES banks outside New York and Chicago or 6.5 6.5 investors other than banks take increasing V proportions of Government securities, New ^VV RESERVE BALUNICES York and Chicago banks will need addi- 5.5 5.5 tional reserves if they are to continue to purchase Government securities. In recent 4.5 4.5 weeks additional reserves have been furnished banks in New York City through substantial Federal Reserve Bank purchases FACTORS OF GAINS AND LOSSES 1.0 (r.nuin ATIVF NFT r.H&NRF rnnu Finn OF 144m 1.0 of Government securities. RESERVE BANK / CREDIT ' 0 0 RECENT CHANGES IN POSITION OF BANKS As a result of the drain of funds out of 1.0 N TR E A T N T S R A E C A T S IO U N R S Y MONEY IN l""*"" -1.0 New York and of continued large purchases of Government securities by banks V throughout the country, there has been a 2.0 -2.0 rapid growth in deposits at banks outside 1 1 1 i 1 1 1 1 1 1 1 .1 1 ... 1 1 1 1 1 1 1 1 ! 1941 1942 New York City. Changes in the position Reserve balances are weekly averages of daily figures; others are for of weekly reporting member banks in New Wednesday dates. Latest figures shown are for July 22. Factors of gains and losses shown on chart do not include balancing York, in Chicago, and in 99 other cities item covering largely commercial and security transactions and disbursements from foreign accounts with the Federal Reserve Bank of New York. Over the 18 months' period shown there was little net during 1941 and 1942. are shown on the change in this item. 74*- FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REVIEW OF THE MONTH accompanying charts. New York City first quarter of the year and this increase banks showed some decline in deposits at continued at a more rapid rate in the the end of last year and little change this second quarter. year; at the same time they have continued It appears that in recent weeks central to increase their investments and have lost reserve city banks have used the bulk of reserves. Chicago banks, for which the their available funds in the purchase of chart is shown on the next page, have additional Government securities. Other gained deposits and have increased their banks have also purchased large amounts of loans and investments. On balance their securities but, owing to an inflow of funds, reserves were maintained until a few weeks these districts have not lost reserves. Notago, but recently they have declined. withstanding currency withdrawals and in- At banks in leading cities outside -New creases in required reserves, the excess York and Chicago both deposits and in- reserves of banks outside of New York and vestments have increased rapidly, and re- Chicago have been maintained at around serves have shown little change. Avail- 2. billion dollars since the beginning of the able data for other banks, not shown on year. With their excess reserves and their the charts, indicate a continued growth in large balances with correspondents, these deposits with little change in reserves. banks continue to have an abundant supply Country bank investments increased in the of unutilized funds. REPORTING MEMBER BANKS REPORTING MEMBER BANKS IN NEW YORK CITY IN 99 OTHER CITIES BILLIONS OF DOLLARS WEDNESDAY FIGURES BILLIONS OF DOLLARS BILLIONS OF DOLLARS WEDNESDAY FIGURES BILLIONS OF DOLLARS 18 18 18 DEPCSITS LOANS. INVESTMENTS. AND RESERVES 18 DEPCSITS LOANS. INVESTMENTS. AND RESERVES J 16 16 16 16 / S 14 14 14 DEMAND DEPOSITS S LOANS AND 14 LOANS M ADJUSTED JT INVESTMENTS INVESTMENTS,^ • • \y 12 DEMAND DEPOSITS 12 12 12 ADJUSTED f 10 10 10 10 8 8 O U B . L S IG . A G T O I V O N I S fc r /M / U. S. GOVT —/=•-• 6 6 DUE TO DOMESTIC BANKS DUE TO DOMESTIC BANKS RESERVE^% 4 4 RESERVE BALANCES 2 2 1 1 1 1 1 1 1 1 1 i 1i i1 i i i i i i i i i i i i i i i i l. j i_ 1941 1942 1941 1942 1941 1942 1941 1942 U. S. Government obligations include both direct and fully guaranteed issues. Break in "Due to Domestic Banks" curve is occasioned by elimination of reciprocal balances from reported figures on July 1. Latest figures shown are for July 22. AUGUST 1941 743 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REVIEW OF THE MONTH REPORTING MEMBER BANKS marketable Government securities out- IN CHICAGO standing and to nearly two-fifths of the growth in the total debt. Holdings of BILLIONS OF DOLLARS WEDNESDAY FIGURES BILLIONS OF DOLLARS insurance companies and mutual savings 4 4 banks increased by about i.z billion dollars. It appears that all other investors—mostly individuals, corporations, and trust accounts—added more than a billion dollars to their holdings of marketable Government securities, in addition to their heavy purchases of nonmarketable issues. The following table shows the acquisitions made during the first two quarters of this year by various classes of member banks. Chicago banks and reserve city banks showed the largest percentage increases in the second quarter of the year. Country banks also bought large amounts of additional securities. Notwithstanding their reduced reserves, central reserve city 1941 1942 1942 banks in New York and Chicago accounted U. S. Government obligations include both direct and fully guran teed issue. Break in "Due to Domestic Banks" curve is occasioned for 36 per cent of the increase in holdings by elimination of reciprocal balances from reported figures on July 1. Latest figures shown are for July 22. of all member banks in the second quarter of this year, after showing only a small DISTRIBUTION OF GOVERNMENT SECURITIES increase in the preceding nine months. In the first half of this year the total outstanding direct and guaranteed debt MEMBER BANK HOLDINGS OF U. S. GOVERNMENT of the United States Government increased SECURITIES [In millions of dollars! by ix.7 billion dollars, including about 4.6 billion of nonmarketable issues—War Increase Holdings Savings bonds and tax notes—sold to pri- Class of banks June 30, Apr. 4, Dec. 31, 1942 1942 to 1941 to vate investors and 900 million dollars of June 30, Apr. 4, 1942 1942 special issues sold to Federal agencies and trust funds. Marketable Government se- Central reserve city banks: New York *8,550 *813 116 curities increased by 7.1. billion. Chicago 1,858 368 60 In the half-year member banks added 4.x R C e o s u e n r t v r e y c b i a ty n k b s anks 5 8, , 1 4 8 8 9 8 1,3 7 5 4 7 2 3 3 6 6 9 5 billion dollars to their holdings of Govern- All member banks. *24,086 *3,280 910 ment securities, other commercial banks * Figures for holdings of New York banks and of all member banks probably took about xoo million more, on June 30, 1942, include, but those for increases exclude, holdings of J. P. Morgan and Co. which became a member bank on April 4, 1942. These holdings amounted to 356 million dollars on June 30. and Federal Reserve Banks increased their holdings by 400 million dollars. Purchases During July the Treasury sold a x-billion by the banking system, therefore, amounted dollar issue of 2. per cent bonds of 1949-51 to about two-thirds of the increase in and increased the amount of bills outstand- 744 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REVIEW OF THE MONTH ing by nearly 1.2. billion. Reporting mem- The wider distribution of Treasury bills ber banks in leading cities added about 700 has resulted from a number of factors. million dollars to their holdings of Govern- The bill rate has increased to approximent bonds and 500 million to their mately 0.37 per cent from practically noth- Treasury bills. It appears that nonreport- ing. This increase in the rate has made ing banks and other investors purchased Treasury bills attractive to banks and others larger amounts than they usually have of that formerly were not interested because securities of these types. Federal Reserve of the low prevailing rate. Establish- Banks purchased 500 million dollars of ment by the Federal Reserve Banks at the securities in July, mostly bills and certifi- DISTRIBUTION OF TREASURY BILLS cates. Sales of War Savings Bonds amount- BILLIONS OF DOLLARS WEDNESDAY FIGURES BILLIONS OF DOLLARS ed to 900 million dollars during the 5 5 month, compared with 630 million dollars in June. The increase reflected in part the effect of raising from $50,000 to $100,000 the maximum amount of Series F and G bonds that any individual subscriber could buy in one year and in part the intensified sales campaign for War Savings Bonds. WIDER DISTRIBUTION OF TREASURY BILLS 2. During the past few months, as shown in the accompanying chart, the market for 3-month Treasury bills has broadened considerably. The weekly offering of bills was increased from 150 million dollars to X5o million dollars in May, to 300 million in June, and to 350 million in July. On July Z9 the total volume of bills outstanding amounted to 3.7 billion dollars compared with x.o billion dollars at the begin- 1941 1942 ning of May. A large part of this increase Latest figures are for July 22, in outstanding bills was absorbed by weekly reporting member banks in leading cities end of April of a y% of one per cent buying outside New York City arid Chicago and rate on all Treasury bills offered to them by nonreporting member banks and other had the effect of making Treasury bills investors. Holdings of bills by New York practically as liquid as excess reserves. City banks have also increased somewhat Banks in New York City and Chicago, in recent weeks. Holdings of bills by which formerly provided the principal the Federal Reserve Banks have increased market for Treasury bills, have been opersubstantially since early May through ating with a smaller volume of excess open-market purchases to supply reserve reserves and in some instances have sold funds. bills to the System Account to obtain re- AUGUST 1941 745 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REVIEW OF THE MONTH serve funds. Outside banks, on the other At reporting member banks in leading hand, with ample unemployed funds have cities combined holdings of commercial and found it to their advantage to employ part industrial loans and of open-market paper of their excess in Treasury bills. The inter- declined by about 700 million dollars from est of outside banks in Treasury bills as an the middle of March to the end of July, outlet for their idle funds has been stimu- while so-called "all other loans," which lated to some extent through the efforts of include consumer credit, declined by zoo the Federal Reserve Banks in explaining million following a reduction of 100 million the advantages of bills as short-term in- in the previous four months. Real-estate vestment paper. loans, which had shown a gradual increase Over the period from last September, for several years, have recently been slightly, when the bill rate was 0.06 per cent, to reduced. Loans to brokers and dealers in July z<j, reporting member banks outside securities show occasional fluctuations, New York City and Chicago increased largely in response to needs of dealers their holdings of bills from little over 100 engaging in Government security operamillion dollars to nearly 900 million. tions, but generally have continued at a During this period holdings by others than comparatively low level for the past two reporting member banks and Federal Re- years. serve Banks also increased by 700 million dol- Country banks, according to preliminary lars. New York City and Chicago banks figures, showed a decline of 330 million increased their holdings moderately in the dollars in total loans during the second period. From the middle of April to quarter of the year, following a decrease July Z9, the Federal Reserve Banks added of 140 million in the first quarter and sus- 500 million dollars to their bill holdings. tained increases in the previous three years. The increase in holdings shown for the Figures are not yet available for the various other investor group in December reflected types of loans made by country banks. purchases of bills by large corporations Results of a survey of commercial and and insurance companies for year-end state- industrial loans made by member banks ment purchases. The temporary increase during a recent one-month period are prein holdings by this group around the first sented in another article in this BULLETIN. of April reflected purchases in Chicago for These data indicate that the dominant avoidance of taxes on bank deposits. After portion of such loans is made to borrowers allowance for these temporary factors, the engaged in wholesale and retail trade and trend of holdings by that group has been to manufacturers of food and clothing. gradually upward. Substantial amounts of loans are also being made to manufacturers of metal products, including shipbuilding, machinery, and DECLINE IN BANK LOANS munitions, and to building and construc- Loans of member banks, which increased tion operators, primarily for war purposes. substantially from the middle of 1940 until About one-third of all loans and early this year, have declined in recent renewals made in the month were dimonths. Total loans of all member banks rectly to aid in financing the producshowed a decrease of 900 million dollars tion and distribution of war goods. between April 4 and June 30. It would appear from other sources of 746 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REVIEW OF THE MONTH information that the bulk of the loans are liminary reports indicate that there has related to the increased inventories, in- also been a moderate reduction in the cluding goods in process, as well as raw volume of charge account sales. Most materials and products for sale, that the customers have been paying up their acvarious borrowers have been carrying. counts much more promptly so that the Statistics show that inventories both in amount outstanding has been considerably trade and in manufacturing have increased reduced. substantially in the past year. The recent The Regulation provided that charge declining tendency in commercial loans accounts in which obligations incurred in probably reflects some reduction in needs May or earlier months were not paid by of business firms for financing of this sort. July 10 would be in default, in which case further purchases of listed articles could not DECLINE IN CONSUMER CREDIT be made without first placing the account Credit extended to consumers by various in good standing. The accelerating intypes of lenders has been declining since fluence of this regulation on collections was last September. Since January, when auto- apparent as early as May, promptly after mobile sales were sharply curbed, the de- the adoption of the amendment, and colcrease has been particularly rapid, and lections continued to be exceedingly rapid it has been further accelerated since early in June. Large amounts were collected in May, when the Board's Regulation W was the several days preceding and following broadened in scope and made more restric- July 10. A sample survey conducted by tive in terms. The decline in consumer the Board showed that between ^5 and 34 instalment debt, which was at a rate of 1x5 of all charge accounts became "frozen" million dollars a month in the last quarter on July 10, which suggests a considerable of 1941, has recently been nearly 300 increase in the rate of collections. The million a month. principal effect of regulation so far has been This decline has resulted primarily from to stimulate repayments of accounts outdecreased sales of automobiles and to a less standing. The freezing of accounts may extent of other consumer durable goods. later result in a more marked decline in Since Amendment 4 to the Regulation charge account sales. shortened all maturities on instalment On cash instalment loans made directly sales contracts to ix months and increased to consumers by lending agencies maxidown payments on most articles to one- mum maturities were reduced from 15 to third of the cash purchase price, instalment ix months by Amendment 4. In May, sales at department stores, furniture stores, cash instalment loans showed a slightly acand jewelry stores have declined. Sales celerated rate of decline and preliminary of household appliances have also been figures indicate a further decline in June. reduced, owing in part to a growing short- In ordinary years there is a slight seasonal age of goods. increase in cash lending in the late spring Charge accounts at retail stores, which and early summer months. A smaller dewere brought under regulation by Amend- cline in June of this year than in prior ment 4, have shown some decline. Pre- months may reflect these seasonal influences. AUGUST 1942. 747 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT Administrative interpretations of banking laws, new regulations issued by the Board of Governors, and other similar material. Amendments to Federal Reserve Act York, one by the boards of directors of the Federal Reserve Banks of Boston, Philadelphia, and Membership of Federal Open Market Richmond, one by the boards of directors of the Committee Federal Reserve Banks of Cleveland and Chi- Reserves of Member Banks cago, one by the boards of directors of the Federal Reserve Banks of Atlanta, Dallas, and St. On July 7, 1942., the President of the United Louis, and one by the boards of directors of the States approved an Act of Congress amending Federal Reserve Banks of Minneapolis, Kansas section 12. A of the Federal Reserve Act with City, and San Francisco. In such elections each reference to the composition of the Federal Open board of directors shall have one vote; and the details of such elections may be governed by Market Committee. The Act also amended the regulations prescribed by the committee, which sixth paragraph of section 19 of the Federal may be amended from time to time. An alter- Reserve Act so as to authorize the Board of nate to serve in the absence of each such repre- Governors to change the reserve requirements sentative shall likewise be a president or first of member banks in central reserve cities, within vice president of a Federal Reserve bank and shall be elected annually in the same manner." the limitations of the present law, without SEC. Z. The sixth paragraph of section 19 of necessarily making a change in reserve requirethe Federal Reserve Act, as amended (U. S. C, ments of member banks in reserve cities, and title ix, sec. 46zb), is amended to read as folamended the ninth paragraph of section 19 of lows: the Federal Reserve Act by repealing the pro- "Notwithstanding the other provisions of vision which prohibits member banks from this section, the Board of Governors of the Federal Reserve System, upon the affirmative vote making new loans or paying dividends while of not less than four or its members, in order to their reserves are deficient. The text of the Act prevent injurious credit expansion or contracis as follows: tion, may by regulation change the requirements as to reserves to be maintained against demand [PUBLIC LAW 656—77TH CONGRESS] or time deposits or both (1) by member banks in [CHAPTER 488—2.D SESSION] central reserve cities or (2.) by member banks in [S. 1565] reserve cities or (3) by member banks not in reserve or central reserve cities or (4) by all AN ACT member banks; but the amount of the reserves To amend sections 12.A and 19 of the Federal Reserve Act, required to be maintained by any such member as amended. bank as a result of any such change shall not be Be it enacted by the Senate and House of Representa- less than the amount of the reserves required by tives of the United States of America in Congress law to be maintained by such bank on the date assembled, That subsection (a) of section 12.A of of enactment of the Banking Act of 1935 nor the Federal Reserve Act, as amended (U. S. C, more than twice such amount." title ix, sec. 2.63), is amended by striking out the SEC. x. The ninth paragraph of section 19 of second and third sentences thereof and substitut- the Federal Reserve Act, as amended (U. S. C, ing the following: "Such representatives shall title 12., sec. 464), is amended by striking out be presidents or first vice presidents of Federal the proviso thereof, so that the paragraph will Reserve banks and, beginning with the election read as follows: for the term commencing March 1, 1943, shall "The required balance carried by a member be elected annually as follows: One by the board bank with a Federal Reserve bank may, under of directors of the Federal Reserve Bank of New the regulations and subject to such penalties as 748 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT may be prescribed by the Board of Governors of deposits, open account" and "savings deposits", the Federal Reserve System, be checked against as defined below. and withdrawn by such member bank for the (c) Time certificates of deposit.—The term purpose of meeting existing liabilities." Approved, July 7, 1941. "time certificate of deposit" means a deposit evidenced by a negotiable or non-negotiable Reserves instrument which provides on its face that the amount of such deposit is payable to bearer or Amendments to Regulation D to any specified person or to his order— The Board of Governors, on July 14, 1942., amended section 3(c) and deleted section 4 of (1) On a certain date, specified in the in- Regulation D, relating to reserves of member strument, not less than thirty days after the banks, so as to conform to the amendments to date of the deposit, or section 19 of the Federal Reserve Act made by (2.) At the expiration of a certain specified the Act of July 7, i94x. time not less than thirty days after the date The Board also amended section z(c) by the of the instrument, or addition of a proviso authorizing a Federal (3) Upon notice in writing which is actu- Reserve Bank, in its discretion, to refuse at any ally required to be given not less than thirty time to permit the withdrawal or other use of days before the date of repayment,1 and (4) In all cases only upon presentation and credit given in its reserve account for any item surrender of the instrument. for which the Federal Reserve Bank has not received payment in actually and finally col- 00 Time deposits, open account.—The term lected funds. This amendment conforms Regu- "time deposit, open account" means a deposit, lation D to a similar provision in Regulation J. other than a "time certificate of deposit" or a These amendments do not affect the Supple- "savings deposit", with respect to which there ment, which remains in effect in the form which is in force a written contract with the depositor became effective on November 1,1941. that neither the whole nor any part of such There is set forth below the text of Regulation deposit may be withdrawn, by check or other- D as thus amended, which also incorporates wise, prior to the date of maturity, which shall the amendment to section 3 (a) adopted by the be not less than thirty days after the date of the Board effective February 18,1942.. deposit,2 or prior to the expiration of the period of notice which must be given by the depositor REGULATION D in writing not less than thirty days in advance Amended effective July 14, 1942. of withdrawal.3 (e) Sayings deposits.—The term "savings RESERVES OF MEMBER BANKS deposit" means a deposit, evidenced by a pass AUTHORITY FOR REGULATION book, consisting of funds (i) deposited to the This regulation is issued under authority of credit of one or more individuals, or of a corporaprovisions of section 19 of the Federal Reserve tion, association or other organization operated Act which, together with related provisions of primarily for religious, philanthropic, charlaw, are published in the Appendix hereto. 1 A deposit with respect to which the bank merely reserves the right to require notice of not less than thirty days before any withdrawal is SECTION I. DEFINITIONS made is not a "time certificate of deposit" within the meaning of the above definition. (a) Demand deposits.—The term "demand 2 Deposits, such as Christmas club accounts and vacation club accounts, which are made under written contracts providing that no deposits" includes all deposits except "time withdrawal shall be made until a certain number of periodic deposits have been made during a period of not less than three months constitute deposits'* as defined below. "time deposits, open account" even though some of the deposits are made within thirty days from the end of such period. (F) Time deposits.—The term "time depos- 3 A deposit with respect to which the bank merely reserves the right to require notice of not less than thirty days before any withdrawal is its" means "time certificates of deposit", "tkne made is not a "time deposit, open account", within the meaning of the above definition. AUGUST 1942. 749 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT itable, educational, fraternal or other similar as soon as practicable after the withdrawal is purposes and not operated for profit,4 or (ii) in made. which the entire beneficial interest is held by (f) Gross demand deposits.—The term "gross one or more individuals or by such a corpora- demand deposits" means the sum of all demand tion, association or other organization, and in deposits, including demand deposits made by respect to which deposit— other banks, the United States, States, counties, school districts and other governmental sub- (i) The depositor is required, or may at any divisions and municipalities, and all outstanding time be required, by the bank to give notice certified and officers' checks (including checks in writing of an intended withdrawal not issued by the bank in payment of dividends), less than thirty days before such withdrawal letters of credit and travelers' checks sold for is made; cash, and drafts drawn upon or other authoriza- (V) Withdrawals are permitted in only two tions to charge the member bank's reserve, acways, either (i) upon presentation of the pass count at the Federal Reserve bank. book, through payment to the person pre- (g) Cash items in process of collection.— senting the pass book, or (ii) without pres- The term "cash items in process of collection" entation of the pass book, through payment means— to the depositor himself but not to any other person whether or not acting for the (i) Checks in process of collection, drawn depositor.5 on a bank, private bank, or any other banking institution, which are payable immediately The presentation by any officer, agent or emupon presentation in the United States, inployee of the bank of a pass book or a duplicate cluding checks with a Federal Reserve bank thereof retained by the bank or by any of its in process of collection and checks on hand officers, agents or employees is not a presentawhich will be presented for payment or fortion of the pass book within the meaning of this warded for collection on the following busiregulation except where the pass book is held ness day; by the bank as a part of an estate of which the (i) Government checks and warrants bank is a trustee or other fiduciary, or where the drawn on the Treasurer of the United States pass book is held by the bank as security for a which are in process of collection; loan. If a pass book is retained by the bank, (3) Such other items in process of collecit may not be delivered to any person other than tion, payable immediately upon presentation the depositor for the purpose of enabling such in the United States, as are customarily cleared person to present the pass book in order to make or collected by banks as cash items. a withdrawal, although the bank may deliver the pass book to a duly authorized agent of the Items handled as non-cash collections may depositor for transmittal to the depositor. not be treated as "cash items in process of col- Every withdrawal made upon presentation of lection" within the meaning of this regulation. a pass book shall be entered in the pass book (F) Net demand deposits.—The term ' 'net at the time of the withdrawal, and every other demand deposits" means gross demand deposits withdrawal shall be entered in the pass book as defined in subsection (f) of this section less the deductions allowed under the provisions 4 Deposits in joint accounts of two or more individuals may be classi- of subsection (b) of section 2. of this regulation. fied as savings deposits if they meet the other requirements of the above definition, but deposits of a partnership operated for profit may not be so classified. Deposits to the credit of an individual of funds in which any beneficial interest is held by a corporation, partnership, SECTION 2.. COMPUTATION OF RESERVES association or other organization operated for profit or not operated primarily for,religious, philanthropic, charitable, educational, fraternal (a) Amounts of reserves to be maintained.—. or other similar purposes may not be classified as savings deposits. 6 Presentation of a pass book may be made over the counter or Every member bank of the Federal Reserve through the mails; and payment may be made over the counter, through the mails or otherwise, subject to the limitations of paragraph (2) above System is required by law to maintain on deposit as to the person to whom such payment may be made. 750 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT with the Federal Reserve bank of its district an collection as defined in subsection (g) of section actual net balance equal to three per cent of its 1 of this regulation. Balances "due from other time deposits plus— banks" do not include balances due from Federal Reserve banks, balances (payable in dollars Seven per cent of its net demand deposits or otherwise) due from foreign banks or branches if not in a reserve or central reserve city. thereof wherever located, or balances due from Ten per cent of its net demand deposits if foreign branches of domestic banks. The word in a reserve city, except that if located in an "banks" in the term "due from other banks" outlying district of a reserve city or in terrirefers to incorporated banks and does not intory added to such city by the extension of the clude private banks or bankers.7 city's corporate limits such bank may, upon (V) Availability of cash items as reserve.— the affirmative vote of five members of the Cash items forwarded to a Federal Reserve bank Board of Governors of the Federal Reserve for collection and credit cannot be counted as System, be permitted to maintain seven per part of the minimum reserve balance to be carcent reserves against its net demand deposits. ried by a member bank with its Federal Reserve Thirteen per cent of its net demand deposits bank until the expiration of such time as may be if located in a central reserve city, except that specified in' the appropriate time schedule reif located in an outlying district of a central ferred to in Regulation J. If a member bank reserve city or in territory added to such city draw against items before such time, the draft by the extension of the city's corporate limits, will be charged against its reserve balance if such bank may, upon the affirmative vote of such balance be sufficient in amount to pay it; five members of the Board of Governors of but any resulting impairment of reserve balthe Federal Reserve System, be permitted to ances will be subject to the penalties provided maintain seven per cent or ten per cent reby law and by this regulation: Provided, howserves against its net demand deposits. ever. That the Federal Reserve bank may, in its Notwithstanding any other provision of this discretion, refuse at any time to permit the regulation, the actual net balance which each withdrawal or other use of credit given in its member bank is required to maintain on deposit reserve account for any item for which the with the Federal Reserve bank of its district in Federal Bank has not received payment in accordance with the foregoing shall be changed actually and finally collected funds. by such percentage, within the limitations pre- (d) Reserves against trust funds.—A member scribed by law,6 as the Board of Governors of the bank exercising trust powers need not main- Federal Reserve System shall prescribe from time tain reserves against trust funds which it keeps to time pursuant to the sixth paragraph of sec- properly segregated as trust funds and apart tion 19 of the Federal Reserve Act, as amended, from its general assets or which it deposits in in order to prevent injurious credit expansion another institution to the credit of itself as or contraction. trustee or other fiduciary. If, however, such (F) Deductions allowed in computing re- funds are mingled with the general assets of the serves.—In determining the reserve balances bank, as permitted to national banks under required under the terms of this regulation, authority of section n(k) of the Federal Remember banks may deduct from the amount of serve Act, a deposit liability thereby arises their gross demand deposits the amounts of against which reserves must be maintained. balances subject to immediate withdrawal due from other banks and cash items in process of 7 A member bank exercising fiduciary powers may not include in balances "due from other banks" amounts of trust funds deposited with other banks and due to it as trustee or other fiduciary. If trust funds are deposited by the trust department of a member bank in its • The amount of the reserves required to be maintained by any commercial or sayings department and are then redeposited in another such member bank as a result of any such change may not be less than bank subject to immediate withdrawal they may be included by the the amount of the reserves specified above nor more than twice such member bank in balances "due from other banks", subject to the proamount. visions of subsection (b) above. AUGUST 1941 751 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT (0 Continuance of "time deposit" status.— Reserve banks with the approval of the Board A deposit which at the time of deposit was a of Governors of the Federal Reserve System. "deposit evidenced by a time certificate of (b) Penalties. deposit", "time deposit, open account", or (1) Penalties for such deficiencies will be "savings deposit" continues to be a "time assessed monthly on the basis of average daily deposit" until maturity or the expiration of the deficiencies during each of the reserve compuperiod of notice of withdrawal, although it has tation periods ending in the preceding calenbecome payable within thirty days. After the dar month. date of maturity of any time deposit, such (z) Such penalties will be assessed at a rate deposit is a demand deposit. After the expiraof two per cent per annum above the Federal tion of the period of notice given with respect Reserve bank rate applicable to discounts of to the repayment of any savings deposit or other ninety day commercial paper for member time deposit, such deposit is a demand deposit, banks, in effect on the first day of the calendar except that, if the owner of such deposit advise month in which the deficiencies occurred. the bank in writing that the deposit will not be withdrawn pursuant to such notice or that (0 Notice to directors of banks deficient in the deposit will thereafter again be subject to reserves.—Whenever it shall appear that a the contract or requirements applicable to such member bank is not paying due regard to the deposit, the deposit will again constitute a maintenance of its reserves, the Federal Reserve savings deposit or other time deposit, as the bank shall address a letter to each director of case may be, after the date upon which such such bank calling attention to the situation and advising him of the requirements of the law and advice is received by the bank. of this regulation regarding the maintenance of SECTION 3. DEFICIENCIES IN RESERVES reserves. (d) Continued deficiencies.—If, after the no- 0*) Computation of deficiences. tice provided for in subsection (c) of this section (1) Deficiencies in reserve balances of mem- 3 has been given, it shall appear that the member ber banks in central reserve cities and in bank is continuing its failure to pay due regard reserve cities shall be computed on the basis to the maintenance of its reserves, the Federal of average daily net deposit balances covering Reserve bank shall report such fact to the Board weekly periods. Deficiencies in reserve bal- of Governors of the Federal Reserve System with ances of other member banks shall be com- a recommendation as to whether or not the puted on the basis of average daily net deposit Board should— balances covering semimonthly periods.8 (1) In the case of a national bank, direct (2.) In computing such deficiencies the rethe Comptroller of the Currency to bring suit quired reserve balance of each member bank to forfeit the charter of such national bank at the close of business each day shall be based pursuant to section z of the Federal Reserve upon its net deposit balances at the opening Act; or of business on the same day; and the weekly (2.) In the case of a State member bank, inand semimonthly periods referred to in para- stitute proceedings to require such bank to graph (1) hereof shall end at the close of surrender its stock in the Federal Reserve business on days to be fixed by the Federal bank and to forfeit all rights and privileges of membership pursuant to section 9 of the » Deficiences in reserve balances of member banks in outlying sections of central reserve and reserve cities which have been authorized Federal Reserve Act; or by*the Board of Governors of the Federal jReserve System, under the provisions of subsection (a) of section 2 of this regulation, to main- (3) In either case, take such other action as tain seven per cent reserves against demand deposits, will also be computed on the basis of average daily net deposit balances covering semi- the Federal Reserve bank may recommend or monthly periods. FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT the Board of Governors of the Federal Reserve "PUBLIC DEBT ACT OF 1941 (APPROVED MARCH System may consider advisable. 2.8, 1941). * * * * ** Federal Reserve Bank Stock "Sec. 6. Section 4 of the Public Debt Act of 1941 (Public, Numbered 7, Seventy-seventh Tax on Dividends Congress, first session), is hereby amended Section 6 of the Act of March 18,1942., known to read as follows: " 'Sec. 4. (a) Interest upon obligations, as the "Public Debt Act of 1942.*', in effect and dividends, earnings, or other income from amended that portion of section 7 of the Federal shares, certificates, stock, or other evidences Reserve Act exempting from Federal taxation of ownership, and gain from the sale or other income derived from Federal Reserve Bank stock, disposition of such obligations and evidences so as to remove such exemption from shares of ownership issued on or after the effective date of the Public Debt Act of 1942. by the issued on or after March z8, 1942.. On July 6, United States or any agency or instrumentality 1941, the Treasury Department issued a decision thereof shall not have any exemption, as such, (T.D. 5160) to the effect that for the purposes and loss from the sale or other disposition of of section 6 of the Public Debt Act of 1941 Fed- such obligations or evidences of ownership eral Reserve Bank stock is deemed to be issued shall not have any special treatment, as such, under Federal tax Acts now or hereafter at the time and to the extent that payment enacted; except that any such obligations therefor is made to the Federal Reserve Bank, which the United States Maritime Commisand the date of issuance of a certificate is not sion or the Federal Housing Administration determinative if payment is made at an earlier had, prior to March 1, 1941, contracted to or later date. The full text of the Treasury issue at a future date, shall when issued bear such tax-exemption privileges as were, at the Decision is as follows: time of such contract, provided in the law (T. D. 5160) authorizing their issuance. For the purposes of this subsection a Territory, a possession of TITLE 2.6—INTERNAL REVENUE the United States, and the District of Columbia, and any political subdivision thereof, CHAPTER I and any agency or instrumentality of any one SUBCHAFTER A—PART 19 or more of the foregoing, shall not be considered as an agency or instrumentality of the Income Tax United States. Amending sections 19.22 (F)(j)-2, 1922 (J))(J)-$, " '(b) The provisions of this section shall, and 1 p.22 Q?)Q4)-4 of Regulations 103, to conform with respect to such obligations and evidences to the -provisions of section 4 of the Public Debt of ownership, be considered as amendatory Act of 1941, as amended by section 6 of the Public of and supplementary to the respective Acts Debt Act of 1942. or parts or Acts authorizing the issuance of TREASURY DEPARTMENT, such obligations and evidences of ownership, Office of Commissioner of Internal Revenue, as amended and supplemented. Washington, D. C " *(c) Nothing contained herein shall be construed to amend or repeal sections 114 and 115 of the Revenue Act of 1941-' To COLLECTORS OF INTERNAL REVENUE AND OTHERS CONCERNED: Par. i. Section i9.n(b)(4)-2. is amended to In order to conform Regulations 103 [Part 19, read as follows: Title z6, Code of Federal Regulations, 1940 "Sec. 19.2.2. (b) (4)-i. Dividends from shares Sup.] to the provisions of section 4 of the Public Debt Act of 1941, as amended by section 6 of the and stock of Federal agencies or instrumentalities. Public Debt Act of 1941 (Public Law 510, 77th (a) Issued prior to March 28, 1942. Section 16 Congress), approved March 2.8, 1942., such of the Federal Farm Loan Act of July 17, 1916 regulations are amended as follows: (39 Stat. 380, ii U.S.C., 1940 ed., 931), pro- Paragraph 1. The following is inserted im- vides that Federal land banks and national mediately preceding section 19.11 (b)(4)-i: farm-loan associations, including the capital AUGUST 1942. 753 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT and reserve or surplus therein and the income the case of dividends on such stock or shares derived therefrom, shall be exempt from taxa- issued on or after March 28, 1942. tion, except taxes upon real estate. Section "For the purposes of this section, a stock or 7 of the Federal Reserve Act of December 2.3, share is deemea to be issued at the time and to 1913 (38 Stat. 258, 12. U.S.C., 1940 ed., 53O, the extent that payment therefor is made to provides that Federal reserve banks, including the agency or instrumentality. The date of the capital stock and surplus therein and the issuance of the certificate or other evidence of income derived therefrom, shall be exempt ownership of such stock or share is not deterfrom taxation, except taxes upon real estate. minative if payment is made at an earlier or Section 5 (h) of the Home Owners' Loan Act later date. Where old stock is retired in exof 1933 (48 Stat. 133, 12 U.S.C., 1Q40 ed., 1464 change for new stock of a different character (h)) provides that shares of Feoeral savings or preference, the new stock shall be deemed and loan associations shall, both as to their to have been issued at the time of the exchange value and the income therefrom, be exempt rather than when the old stock was paid for. from all taxation (except surtaxes, estate, This paragraph may be illustrated by the inheritance, and gift taxes) imposed by the following examples: United States. Under the above-mentioned "Example (1). A, the owner of an investprovisions, income consisting of dividends ment share account, consisting of 10 shares, on stock of Federal land banks, national farm- in a Federal savings and loan association, has loan associations, and Federal reserve banks a single certificate issued prior to March 28, is not, in the case of stock issued prior to 1941, evidencing such ownership. In order March 28, 1941, subject to the income tax; that A may dispose of half of such shares, the and income consisting of dividends on share association at his request issues, after March accounts of Federal savings and loan associa- 2.7,1941, two five-share certificates in substitutions is not, in the case of shares issued prior tion for the 10-share certificate. The shares to March 28, 1942., subject to the normal tax evidenced by the two new certificates are on income. For taxability of such income in deemed to have been issued prior to March 2.8, the case of such stock or shares issued on or 1942, the shares having been paid for prior after March 28, 1942., see section 6 of the Pub- to such date. lic Debt Act of 1942 and subsection (b) of this "Example (2). The X Bank, a member of a section. For the time at which a stock or Federal reserve bank, owns 50 shares of Fedshare is issued within the meaning of this eral reserve bank stock, evidenced by a single section, see subsection (b) of this section. stock certificate issued prior to March z8, ' 'Regardless of the exemption from income 1942. On December 31, 1942., the X Bank tax of dividends paid on the stock of Federal reduces the amount of its capital stock as a reserve banks, dividends paid by member result of which it is required to reduce the banks are treated like dividends of ordinary amount of its Federal reserve bank stock to corporations. 40 shares. It surrenders the 50-share certifi- "Dividends on the stock of the central cate to the Federal reserve bank and receives bank for cooperatives, the production credit a new 40-share certificate. The 40 shares corporations, production credit associations, evidenced by such certificate are deemed to and banks for cooperatives, organized under have been issued prior to March 2.8, 1942.. the provisions of the Farm Credit Act of 1933, On December 31, 1943, the X Bank increases constitute income to the recipients, subject to the amount of its capital stock as a result of both the normal tax and surtax (see section which it is required to purchase 10 additional 63 of the Farm Credit Act of 1933 (48 Stat. shares of the Federal reserve bank stock. The 2.67, 12. U.S.C., 1940 ed., 1138c)). Federal reserve bank issues a 10-share certifi- "(&) Issued on or after March 28, 1942. By cate evidencing ownership of the new shares. virtue of the provisions of section 6 of the Of the 50 shares then owned by the X Bank, Public Debt Act of 1942., the tax exemption 40 were issued prior to March 2.8, 1942., and provisions set forth in subsection (a) with 10 were issued after March xj, 1942. respect to income consisting of dividends on "Example (5). A, the owner of a savings stock of the Federal land banks, national share account, in the amount of $100, in a farm-loan associations, and Federal reserve Federal savings and loan association, has a banks, or on share accounts of Federal savings passbook containing a certificate issued prior and loan associations, are not applicable in to March 28, 1942., evidencing such owner- 754 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT ship. Subsequent to March 2.7, 1942., A de- (This Treasury decision is issued under the posits $10,000 in the account. With respect to authority contained in section 6 of the Public the $10,000 deposit, the share is deemed to Debt Act of 194Z (Public Law 510, 77th Conhave been issued after March Z7, I942--" gress) and section 3791 (a)(z) of the Internal Revenue Code (53 Stat. 467, z6 U.S.C., 1940 ed., Par. 3. Section 19.ZZ (b)(4)-3 is amended to 3791 (a)(z)).) read as follows: GUY T. HELVERING, 4'Sec. 19.ZZ (b) (4)-3- Interest upon notes Commissioner of Internal Revenue. secured by mortgages executed to Federal agencies Approved: July 6,194Z. or instrumentalities. Section z6 of the Federal JOHN L. SULLIVAN, Farm Loan Act of July 17, 1916 (39 Stat. 380, Acting Secretary of the Treasury. iz U.S.C., 1940 ed., 931), and section zio of such Act, as added by section z of the Act of Consumer Credit March 4, 192.3 (42. Stat. 1459, 12. U.S.C., 1940 ed., mi), provide that first mortagages Amendments to Regulation W executed to Federal land banks, joint-stock land banks, or Federal intermediate credit The Board has issued Amendment No. 5 to banks, and the income derived therefrom, Regulation W effective July z, 194Z and Amendshall be exempt from taxation. Accordingly, ments No. 6 and No. 7, effective July Z7, 194Z. income consisting of interest on promissory Amendment No. 5 adds to the Miscellaneous notes held by such banks and secured by such first mortgages is not subject to the income Provisions under section iz, subsection (m) tax." entitled ' 'Cycle Billing.'' In recognition of the urgent necessity for the conservation of fuel, Par. 4. Section 19.ZZ (b)(4)'4 as amended Amendment No. 6 removes restrictions on exby Treasury Decision 5040, approyed February tensions of credit to finance the conversion of 2.8, 1941, is amended as follows: A. By inserting after the fifth paragraph of heating equipment and the installation of storm subsection (a) the following new paragraph: doors, storm windows, weather stripping and insulation. Amendment No. 7 removes restric- "Section z6 of the Federal Farm Loan Act tions on credit to finance repairs and replaceof July 17, 1916 (39 Stat. 380, iz U.S.C., 1940 ed., 931), and section zio of such Act, as added ments of real or personal property damaged or by section z of the Act of March 4, 19Z3 (4Z lost as a result of floods or other similar dis- Stat. 1459, izU.S.C, 1940 ed., mi), provide asters. that farm-loan bonds issued by Federal land The texts of the amendments are as follows: banks and joint-stock land banks and debentures issued by Federal intermediate credit Amendment No. 5 to Regulation W banks, with the income therefrom, shall be exempt from taxation. Accordingly, interest Regulation W is hereby amended effective from such farm-loan bonds or debentures is July z, 194Z, by adding the following new subnot subject to the income tax." section at the end of section iz: B. By inserting "debentures," immediately (m) 'lCycle Billing .—The provisions of the following "bonds," in the first sentence of sub- following paragraph shall be applicable, instead section (b) and by inserting at the end of sub- of the provisions of the opening paragraph of section (b) the following new paragraph: section 5(0), to any Registrant who (1) on May "In the case of obligations issued as the 6, 194Z, was using a system of recording and result of a refunding operation, as, for ex- billing his charge accounts whereby such acample, where a corporation exchanges bonds counts were divided into several groups and a for previously issued bonds, the refunding obdifferent monthly closing date and monthly ligations are deemed, for the purposes of this billing period was used for each such group, section, to have been issued at the time of the exchange rather than at the time the origi- and (z) has received from the Federal Reserve nal bonds were issued." Bank of his district a notification which is still AUGUST 194Z 755 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT in force stating that the Federal Reserve Bank gency affecting a substantial number of the is satisfied (A) that such billing system makes it inhabitants of the stricken area. impracticable for him to operate under section Interpretations of Regulation W 5(c) and (B) that it would be impracticable for him, in view of orders of the War Production Since the publication of the July Federal Re- Board restricting deliveries of office machinery, serve BULLETIN, the Board of Governors has to change his system over to one that uses the issued the following interpretations of Regulacalendar month as the billing period. tion W: A charge account maintained by such Regis- PURCHASE OF COAL FROM RETAIL COAL DEALERS trant shall be deemed to be in default if any The Board has recently considered the followarticle (whether listed or unlisted) for which ing specific questions regarding the effect of credit was extended in such account has not been Regulation W upon the purchase of coal from paid for in full on or before the 40th day followretail dealers: ing the last day of the applicable monthly (1) May a coal merchant extend credit to a billing period during which such article was domestic consumer on an open charge account sold, except as provided in the three numbered without restriction? paragraphs in section 5(c). (2.) May a coal merchant sell solid fuel to a With respect to any article sold in such a domestic consumer on a budget payment plan charge account, the maximum maturity shall be with terms as long as iz months? the period provided in the preceding paragraph If a coal dealer does not sell any of the articles instead of that provided in section 5(a). listed in section 13(2.) of the regulation, the Amendment No. 6 to Regulation W credit which he extends is not affected in any Regulation W is hereby amended effective way; this list does not include coal. Moreover, July 2.7, 1942., by adding the following new sub- even if the coal dealer does sell listed articles, section at the end of section 8: coal itself may be sold on any terms which are satisfactory to the dealer. This rule applies (m) Fuel Conservation Credits.—Any extension of credit to finance (1) the conversion of heat- whether the sale is on instalments or in a charge ing equipment to the use of any other fuel, (2.) account. the installation of loose-fill, blanket, or batt- Regulation W only affects the coal dealer in type insulation, or insulating board, within respect of the sale of listed articles. He cannot, existing structures, (3) the installation of storm for example, sell a listed article in a charge doors, storm windows, or weather stripping, account if it is in default. The charge account or (4) the purchase of materials for any of the may, of course, include coal; and if the coal as well as any other items have not been paid for above purposes. by the tenth day of the second calendar month Amendment No. 7 to Regulation W following the month in which the sales were Regulation W is hereby amended effective made, the account would be in default, and the July 2.7, 1942., by striking out subsection (h) dealer could not sell a listed article to the of section 8 and substituting the following: customer until the default was cured. The (h) Disaster Credits.—Any extension of creditdefault may be cured by payment in full or by (1) made by the Disaster Loan Corporation, or conversion to an instalment account in ac- (x) to finance the repair or replacement of real cordance with conditions prescribed in the reguor personal property damaged or lost as a result lation. of a flood or other similar disaster which the Thus, Regulation W does not in any way Federal Reserve Bank of the district in which restrain the extension of credit by coal dealers the disaster occurs finds has created an emer- for the purchase of coal, although it has been 756 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT observed that some coal dealers, perhaps or the Registrant may make extensions in the through misunderstanding, have given the manner provided in section 7(c)(i) if the maturregulation a broader application than its lan- ity of the last single-payment obligation is not guage prescribes. later than twelve months from the date of the first one. (See footnote 5.) SAVINGS PASSBOOKS NOT INVESTMENT SECURITIES Board does not regard savings passbooks as SALES FOR FUTURE DELIVERY "investment securities1' for purposes of section The Board recently considered several in- 8(b) of Regulation W. quiries regarding sales for future delivery under Regulation W. MEANING OF "CARRYING" SECURITIES One of the questions related to a "fur coat The word "carrying*' in section 8(b) of Regusold in June with the understanding that the lation W has the same general meaning as in coat would be delivered in November" and section 3(b) of Regulation U. In effect, this would be billed to the customer at the time of confines "carrying" to the refinancing of indelivery. During the interim the item is to be debtedness which was originally incurred for carried in a so-called memorandum account. the purpose of purchasing stocks, bonds, or The question was whether this amounts to an other investment securities. The mere fact agreement to defer payment for a longer period that the extension of credit is secured by such than permitted by the Regulation, but the investment securities is not sufficient. answer depends upon whether the coat was BATTERIES FOR TRUCKS AND BUSSES "sold" in June or is to be sold in November. It was not possible to give an answer which Item 5 in Group A, section 13 (a) of Regulation would be applicable to all cases because the W includes batteries and accessories for trucks facts will differ, but in some cases, as a legal and busses. matter, the coat would not be "sold" until MATURITY OF LOAN TO RETIRE CHARGE ACCOUNT November and the transaction in June would merely be a contract to make a sale at a future The Board has been asked whether under date. In that event, the transaction would not Regulation W a Registrant may make an instalviolate Regulation W since the article would be ment loan with a maturity of twelve months to charged to the customer's account promptly at retire a charge account arising in whole or in the time of the sale. On the other hand, if the part from the sale of a listed article, if the Regiscoat is "sold" in June (so that title passes to trant accepts a Statement of Necessity in accordance with the provisions of section io(d). The the customer, and the Federal tax is due on the answer to this question is that the loan may sale) an agreement to delay payment until have a maximum maturity of twelve months November or later would violate the Regulafrom the date of the loan whether or not the tion. charge account was in default under the pro- Of course, no matter when title passes to the visions of section 5(c). customer, the Registrant may always take ad- The Board has also received an inquiry as to vantage of section iz(d) relating to "Laythe maximum maturity of a single-payment loan away" Plans. Under the conditions therein to retire a charge account. Such a loan must described, he may treat the extension of credit of course have a maturity not in excess of 90 as not having been made until the date of dedays, but, if a Statement of Necessity is taken livery. from the obligor when the loan matures, the Another inquiry related to the sale of furni- Registrant may renew the entire amount on an ture which is made to order and the item is carinstalment basis under section 7(c)(i) for as ried in a memorandum account until the article long as twelve months from the date of renewal, is ready for delivery, at which time the charge AUGUST 1941 757 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT is made to the customer's regular charge ac- payable to himself, but instead, according to count. The Board was of the opinion that such arrangements with a financial institution, takes a transaction involves a bona fide delayed de- a note payable to the financial institution. livery and that the article need not be regarded Such a transaction involving a listed article is as "sold'* within the meaning of section 5(c) an instalment sale whether the note is made until the article is ready for delivery. The payable to the seller or to a financial institution, transaction is therefore merely a contract to since section z(e) specifically states that, so make a sale at a future date. long as the extension of credit is made "by any For the same reason, the Board pointed out seller" of any listed article and "arises out of the that the same result should follow even if the sale of such listed article", the definition applies cost of the furniture is charged to the customer's whether the seller provides for the credit "as regular charge account at the time the order is principal, agent or broker". Such a transaction taken, since the difference is merely in the form does not constitute an instalment loan and of the bookkeeping entry. In such a case if the hence does not require a Statement of Borrower, account is in default on the date when the fur- since under section z(h) an instalment loan niture is ready for delivery, the seller could not includes only specified transactions "other than make delivery unless the furniture were paid an instalment sale". for in full on or before delivery, or unless the When unlisted article involved.—When such default were cured. transactions involve an unlisted article or a serv- Other inquiries related to materials used in ice (including an insurance policy) instead of a connection with repairs, improvements and listed article, the rule is somewhat different. alterations of residential property. In some If the seller takes a note payable to himself the cases a specific list of materials is decided upon, transaction is exempt from the regulation as a and these materials are delivered when called sale of an unlisted article or a service, and the for over a period of time as the job progresses. note may be purchased by a bank or other finan- In other cases, the exact requirements are not cial institution without regard to the requireknown and the materials are ordered and de- ments of the regulation. On the other hand, livered as the job progresses. when the seller takes a note payable to a finan- The answers will depend upon the rights of cial institution instead of to himself, the transacthe parties as fixed by their contracts. If the tion (if for $1,500 or less) is subject to the reguarticles are sold to the contractor, the sales are lation as an instalment loan and a Statement of exempt under section 8(f). (See also W-43.) the Borrower is required. The controlling fac- On the other hand, if the sales are made directly tor in such cases involving an unlisted article to the property owner and not to the contractor, or a service is whether the note is made payable it is probable that there would be a series of to the seller, in which case the transaction is sales which would take place on the several exempt, or is made payable to a financial institudelivery dates. tion, in which case the transaction is subject to the regulation as an instalment loan. Note, INSTALMENT SALE AND LOAN DISTINGUISHED however, that the word "service" as used here- The Board has recently considered several in, does not include any service connected with cases that relate to the differences between (1) the acquisition of a listed article. "instalment sale" (which, by definition, relates The differences between the status of transaconly to listed articles), (z) instalment sale of tions involving listed articles and those involvan unlisted article or a service, and (3) "instal- ing unlisted articles and services flows from the ment loan". fact that the definition of instalment sale in section x(e) is by its terms specifically confined When listed articles involved.—Sometimes the to transactions involving listed articles. When seller of a listed article does not take a note 758 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT an unlisted article or a service is involved and Custodian may appoint assistants and other personnel and delegate to them such functions the note is made payable to a financial instituas he may deem necessary to carry out the tion instead of to the seller, the transaction on provisions of this Executive Order. its face is a loan by the financial institution and z. The Alien Property Custodian is author- (if for $1,500 or less) is subject to the regulation ized and empowered to take such action as he as an instalment loan. deems necessary in the national interest, including, but not limited to, the power to Status of certain other interpretations.—This direct, manage, supervise, control or vest, covers the questions considered in W-16,119 and with respect to: 1x4 and takes the place of those interpretations. (a) any business enterprise within the United States which is a national of a Alien Property Custodian designated enemy country and any property of any nature whatsoever Executive Order Allocating Powers owned or controlled by, payable or There is set forth below the text of an Execu- deliverable to, held on behalf of or on tive Order issued by the President on July 6, account of or owing to or which is evidence of ownership or control of 1941, allocating powers and functions between any such business enterprise, and any the Alien Property Custodian and the Secretary interest of any nature whatsoever in of the Treasury with respect to property of such business enterprise held by an enemy, neutral, and occupied countries and their enemy country or. national thereof; nationals. This Order amends Executive Order (b) any other business enterprise within No. 9095 issued by the President on March 11, the United States -which is a national of a foreign country and any property 1941, and published in the April 1942. Federal of any nature whatsoever owned or Reserve BULLETIN at page 306. controlled by, payable or deliverable to, held on behalf of or on account EXECUTIVE ORDER NO. 9193 of or owing to or which is evidence of ownership or control of any such Amending Executive Order No. popj Establishing business enterprise, and any interest the Office of Alien Property Custodian and of any nature whatsoever in such busi- Defining Its Functions and Duties ness enterprise held by a foreign and Related Matters country or national thereof, when it is determined by the Custodian and By virtue of the authority vested in me by the he has certified to the Secretary of Constitution, by the First War Powers Act, the Treasury that it is necessary in the 1941, by the Trading with the enemy Act of national interest, with respect to such October 6, 1917, as amended, and as President business enterprise, either (i) to provide of the United States, it is hereby ordered as for the protection of the property, (^ii) follows: to change personnel or supervise the Executive Order No. 9095 of March 11, 1942., employment policies, (iii) to liquidate, is amended to read as follows. reorganize, or sell, (iv) to direct the 1. There is hereby established in the Office management in respect to operations, for Emergency Management of the Executive or (v) to vest; Office of the President the Office of Alien Prop- (c) any other property within the United erty Custodian, at the head of which shall be States owned or controlled by a desigan Alien Property Custodian appointed by the nated enemy country or national there- President. The Alien Property Custodian of, not including in such other propshall receive compensation at such rate as the erty, however, cash, bullion, moneys, President shall approve and in addition shall currencies, deposits, credits, credit inbe entitled to actual and necessary transporta- struments, foreign exchange and setion, subsistence, and other expenses inciden- curities except to the extent that the tal to the performance of his duties. Within Alien Property Custodian determines the limitation of such funds as may be made that such cash, bullion, moneys, curavailable for that purpose, the Alien Property rencies, deposits, credits, credit instru- AUGUST 1941 759 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT ments, foreign exchange and securities Order shall not be deemed to modify or amend are necessary for the maintenance or Executive Order No. 8389, as amended, or the safeguarding of other property belong- President's Proclamation of July 17, 1941, ing to the same designated enemy or Executive Order No. 8839, as amended, country or the same national thereof or the regulations, rulings, licenses and other and subject to vesting pursuant to sec- action taken thereunder, or in connection tion 2. hereof; therewith. (d) any patent, patent application, design 4. Without limitation as to any other patent, design patent application, copy- powers or authority of the Secretary of the right, copyright application, trade- Treasury or the Alien Property Custodian mark or trademark application or right under any other provision of this Executive related thereto in which any foreign Order, the Secretary of the Treasury and the country or national thereof has any Alien Property Custodian are authorized and interest and any property of any nature empowered, either jointly or severally, to whatsoever (including, without limita- prescribe from time to time, regulations, tion, royalties and license fees) payable rulings, and instructions to carry out the puror held with respect thereto, and any poses of this Executive Order. The Secretary interest of any nature whatsoever held of the Treasury and the Alien Property Custherein by any foreign country or na- todian each shall make available to the other tional thereof; all information in his files to enable the other (e) any ship or vessel or interest therein, to discharge his functions, and shall keep in which any foreign country or na- each other currently informed as to investigational thereof has an interest; and tions being conducted with respect to enemy (f) any property of any nature whatsoever ownership or control of business enterprises which is in the process of administra- within the United States. tion by any person acting under judicial 5. The Alien Property Custodian is authorsupervision or which is in partition, ized to issue appropriate regulations governlibel, condemnation or other similar ing the service of process or notice upon any proceedings and which is payable or person within any designated enemy country deliverable to, or claimed by, a desig- or any enemy-occupied territory in connection nated enemy country or national there- with any court or administrative action or of. proceeding within the United States. The When the Alien Property Custodian deter- Alien Property Custodian also is authorized mines to exercise any power and authority to take such other and further measures in conferred upon him by this section with connection with representing any such person respect to any of the foregoing property over in any such action or proceeding as in his which the Secretary of the Treasury is exer- judgment and discretion is or may be in the cising any control and so notifies the Secre- interest of the United States. If, as a result tary of the Treasury in writing, the Secretary of any such action or proceeding, any such of the Treasury shall release all control of person obtains, or is determined to have, an such property, except as authorized or directed interest in any property (including money by the Alien Property Custodian. judgments), such property, less an amount 3. Subject to the provisions of this Execu- equal to the costs and expenses incurred by tive Order, all powers and authority conferred the Alien Property Custodian in such action upon me by sections 3 (a) and 5(b) of the Trad- or proceeding, shall be subject to the proing with the enemy Act, as amended, are visions of Executive Order No. 8389, as hereby delegated to the Secretary of the amended, provided, however, that this shall not Treasury or any person, agency, or instru- be deemed to limit the powers of the Alien mentality designated by him; provided, how- Property Custodian under section 2. of this ever, that when any property or interest, not Order; and -provided further, that the Alien belonging to a foreign government or central Property Custodian may vest an amount of bank, shall be vested by the Secretary of the such property equal to the costs and expenses Treasury, such property or interest shall be incurred by the Alien Property Custodian in vested in, and dealt with by, the Alien such action or proceeding. Property Custodian upon the terms directed 6. To enable the Alien Property Custodian by the Secretary of the Treasury. Except to carry out his functions under this Executive as otherwise provided herein, this Executive Order, there are hereby delegated to the Alien 760 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT Property Custodian or any person, agency, or Reserve System pursuant to Executive Order instrumentality designated by him all powers No. 8843 of August 9, 1941, are hereby conand authority conferred upon me by section firmed and ratified. • 5(b) of the Trading with the enemy Act, as 10. For the purpose of this Executive Order: amended, including, but not limited to, the (a) The term "designated enemy country" power to make such investigations and re- shall mean any foreign country against quire such reports as he deems necessary or which the United States has declared appropriate to determine whether any enter- the existence of a state of war (Gerprise or property should be subject to his many, Italy, Japan, Bulgaria, Hungary jurisdiction and control under this Executive and Rumania) and any other country Order. The powers and authority conferred with which the United States is at war upon the Alien Property Custodian by Execu- in the future. The term "national" tive Order No. 9142. shall be administered by shall have the meaning prescribed in him in conformity with the provisions of this section 5 of Executive Order No. 8389, Executive Order. as amended, -provided, however, that per- 7. In the exercise of the authority herein sons not within designated enemy coundelegated, the Alien Property Custodian shall tries (even though they may be within be subject to the provisions of Executive Order enemy-occupied countries or areas) No. 8839 of July 30, 1941, and shall designate shall not be deemed to be nationals of a representative to the Board of Economic a designated enemy country unless the Warfare in accordance with section 6 thereof. Alien Property Custodian determines: 8. All records and other property (including (i) that such person is controlled by or office equipment) of the Treasury Department acting for or on behalf of (including which are used primarily in the administra- cloaks for) a designated enemy countion of powers and duties to be exercised by try or a person within such country; or the Alien Property Custodian, and such per- (ii) that such person is a citizen or subsonnel as is used primarily in the administra- ject of a designated enemy country and tion of such powers and duties and which was within an enemy-occupied country or hired by the Treasury Department after Sep- area; or (iii) that the national interest tember 1, 1941 (including officers whose chief of the United States requires that such duties relate to the administration of such person be treated as a national of a powers and duties), as the Secretary of the designated enemy country. For the Treasury and the Alien Property Custodian purpose of this Executive Order any shall jointly certify for transfer, shall be determination by the Alien Property transferred to the Office of the Alien Prop- Custodian that any property or inerty Custodian. In the event of disagreement terest of any foreign country or national concerning the transfer of any personnel, thereof is the property or interest of a records, or property, the determination shall designated enemy country or national be made by the Director of the Bureau of the thereof shall be final and conclusive as Budget, pursuant to the formula here pre- to the power of the Alien Property scribed. Any personnel transferred pursuant Custodian to exercise any of the power to this Executive Order shall be transferred or authority conferred upon me by secwithout loss of such Civil Service status or tion 5OO of the Trading with the eligibility therefor as they may have. enemy Act, as amended. 9. This Executive Order shall, not be (b) The term "business enterprise within deemed to modify or amend Executive Order the United States" shall mean any in- No. 8843 °^ August 9, 1941, and the reguladividual proprietorship, partnership, tions, rulings, licenses and other action corporation or other organization pritaken thereunder. Any and all action heretomarily engaged in the conduct of a fore taken by the Secretary of the Treasury or business within the United States, and the Alien Property Custodian, or by any perany other individual proprietorship, son, agency, or instrumentality designated by partnership, corporation or other oreither of them, pursuant to sections 3(a) and 5(b) of the Trading with the enemy Act, as ganization to the extent that it has an amended, or pursuant to prior Executive Or- established office within the United ders, and any and all action heretofore taken States engaged in the conduct of busiby the Board of Governors of the Federal ness within the United States. AUGUST 1942. 761 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT ii. The Secretary of the Treasury or the after appropriate certification in any case in Alien Property Custodian, as the case may be, which a certification is required pursuant to shall, except as otherwise agreed to by the the provisions of this Executive Order. Secretary of State, consult with the Secretary FRANKLIN D. ROOSEVELT of State before vesting any property or in- THE WHITE HOUSE, terest pursuant to this Executive Order, and July 6, 194Z. the Secretary of the Treasury shall consult United States Currency with the Secretary of State before issuing any Order adding any additional foreign countries Hawaiian Series to section 3 of Executive Order No. 8389, as amended. Under date of July 7, 1942., the Treasury 12.. Any orders, regulations, rulings, in- Department announced the issuance of Regulastructions, licenses or other actions issued or tions by the Governor of Hawaii calling for the taken by any person, agency or instrumenimmediate withdrawal of all United States tality referred to in this Executive Order, currency now in circulation in the Territory of shall be final and conclusive as to the power of such person, agency or instrumentality to Hawaii and its replacement by a series speexercise any of the power or authority con- cifically prepared for the Territory. The stateferred upon me by sections 3 (a) and 5(b) of ment by the Treasury Department, the Regulathe Trading with the enemy Act, as amended; tions issued*by the Governor of Hawaii, and the and to the extent necessary and appropriate General Orders issued by the Office of the Milito enable them to perform their duties and tary Governor, read as follows: functions hereunder, the Secretary of the Treasury and the Alien Property Custodian Treasury Department shall be deemed to be authorized to exercise Washington severally any and all authority, rights, priv- July 7, i94x ileges and powers conferred on the President Persons holding ordinary United States curby sections 3(a) and 5(b) of the Trading with rency in the Territory of Hawaii must exchange the enemy Act of October 6, 1917, as amended, such currency by July 15, 1942. for United States and by sections 301 and 3ox of Title III of currency of a special series to be used only in the First War Powers Act, 1941, approved the Territory of Hawaii> the Treasury Depart- December 18, 1941. No person affected by ment announced today. The exchange may be any order, regulation, ruling, instruction, made at any bank within the Territory of license or other action issued or taken by Hawaii without charge.. either the Secretary of the Treasury or the The provisions of law governing the currency Alien Property Custodian shall be entitled exchange are contained in regulations issued on to challenge the validity thereof or otherwise June 2.5, 1942., by J. B. Poindexter, Governor of excuse his actions, or failure to act, on the Hawaii, and Brigadier-General Thomas H. ground that pursuant to the provisions of this Green, Executive to the Military Governor of Executive Order, such order, regulation, rul- Hawaii. Under the terms of these regulations, ing, instruction, license or other action was after July 15, 1941, no currency other than within the jurisdiction of the Alien Property United States currency, Hawaiian series, may Custodian rather than the Secretary of the be held or used in the Territory of Hawaii with- Treasury or vice versa. out a license from Governor Poindexter, and 13. Any regulations, rulings, instructions, exportations of the new currency from Hawaii licenses, determinations or other actions will be prohibited. issued, made or taken by any agency or person Any person importing ordinary United States referred to in this Executive Order, purporting currency into Hawaii after June 2.5, 1942., must to be under the provisions of this Executive deposit immediately such currency with an Order or any other proclamation, order or official at the appropriate port of entry, and will regulation, issued under sections 3(a) or 5(b) receive in return currency of the new series. of the Trading with the enemy Act, as Persons willfully disobeying these regulatory amended, shall be conclusively presumed to provisions will be subjected to severe criminal have been issued, made or taken after appro- penalties, under orders issued by Brigadierpriate consultation as herein required and General Green. FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT Treasury officials explained that the new Executive Chambers series is currency of the United States issued by Honolulu, T. H. the United States Treasury Department as legal June 2.5, 1942 tender for Hawaii and that it is fully backed by REGULATIONS RELATING TO CURRENCY: the credit of the United States. A note of the These regulations are issued under the authornew series differs from ordinary American cur- ity vested in the Governor of Hawaii pursuant rency only in that it bears the distinctive over- to Executive Order No. 8389, as amended; print "Hawaii" in bold-faced type on each end Section 5(b) of the Trading with the enemy of the face and the word "Hawaii" across the Act, as amended by Title III of the First War reverse side. Powers Act, 1941, General Orders No. 118, License applications to hold or use ordinary Office of the Military Governor, 2.5 June 1942., United- States currency in Hawaii or to export and pursuant to all other authority vested in United States currency, Hawaiian series, from the undersigned Governor of Hawaii: Hawaii may be filed with Governor Poindexter on Form TFR-Hi8 in the manner in which TITLE 1 Foreign Funds Control applications are filed. (1) Effective at once, all United States cur- The Hawaiian currency replacement program rency now in circulation in the Territory of results from careful study of Hawaiian currency Hawaii will be withdrawn from circulation problems by the Treasury Department, War and will be replaced with new United States Department, Navy Department and Department currency prepared for the Territory of Hawaii by of the Interior, in collaboration with Hawaiian the United States Treasury Department. The civil and military authorities. Brigadier-Gen- new currency will be the same in all respects as eral Green announced that the program comple- ordinary United States currency except that the ments other measures taken for the protection word "HAWAII" will be overprinted in boldof Hawaiian citizens and the economic defense face type on each end of the face of the note and of Hawaii. the word "HAWAII" will be overprinted in large open-face type on the reverse side of the Territory of Hawaii note. Such currency will be referred to in Office of the Military Governor these regulations as "United States currency, Iolani Palace Hawaiian Series." Honolulu, T. H. (2.) All United States currency physically X5 June 1942. within the Territory of Hawaii, except United GENERAL ORDERS States currency, Hawaiian Series, shall be ex- No. 118 changed on or before July 15, 1942., for United UNITED STATES CURRENCY.—1. By virtue of States currency, Hawaiian Series. Prior to July the power vested in the Military Governor of 15, 1941, any person in the Territory of Hawaii the Territory of Hawaii, J. B. Poindexter, may freely exchange United States currency now Governor of the Territory of Hawaii, is hereby in circulation for United States currency, Hawaiauthorized to make and administer regulations ian Series, at any bank in the Territory without relating to the issuance and use of United States charge. currency in the Territory of Hawaii, subject to (3) Effective July 15, 1942., the acquisition, such restrictions and limitations as may be promulgated by the Congress, President, or disposition, holding, possession, transfer of, or Secretary of the Treasury. other dealing in, or with respect to, any United x. Whoever is found guilty of violating any States currency except United States currency, of the provisions of such regulations, shall, upon Hawaiian Series, within the Territory of Hawaii conviction be fined not more than five thousand is hereby prohibited. dollars ($5,000), or, if a natural person, may be (4) Effective July 15, 1941, no person shall imprisoned for not more than five (5) years, or hold, or in any manner permit the holding of, both; and any officer, director, or agent of any United States currency of any series in any safe corporation who knowingly participates in such deposit box within the Territory of Hawaii, and a violation may be punished by a like fine, im- no person shall thereafter deposit, or in any prisonment, or both. manner permit the deposit of, any such currency By Order of the Military Governor: in any safe deposit box within such territory. (Signed) THOMAS H. GREEN (5) All United States currency hereafter Brigadier General, A.U.S. brought into the Territory of Hawaii shall be Executive. immediately delivered to such person as may be AUGUST 1942. 763 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT designated at the appropriate port of entry in able in view of the needs of the military or Hawaii for exchange for United States currency, naval forces of the United Nations. Applications Hawaiian Series. Such exchange will be made for any such license may be filed with the Office without charge. of the Governor of Hawaii on Form TFR-H2.8, (6) No United States currency, Hawaiian and the general procedure to be followed in Series, shall be exported or otherwise physically handling applications for licenses will be that taken from the Territory of Hawaii. Any per- employed in the administration of Executive son desiring to export or otherwise take United Order No. 8389, as amended. Unless the con- States currency from the Territory of Hawaii may trary is expressly provided, no license shall be exchange United States currency, Hawaiian Series, deemed to authorize any transaction prohibited for other United States currency without cost by reason of the provisions of any law, proclamaby making appropriate application to such tion, order, or regulation other than „ these person as may be designated at the port of exregulations. The decision with respect to the portation or withdrawal from Hawaii and by granting, denial, or other disposition of any complying with the procedure prescribed by such application for a license shall be final. designated person in connection therewith. (2.) Rulings, instructions, interpretations, or (7) Banks within the Territory of Hawaii licenses may, from time to time, be made or and such other persons as may from time to time issued to carry out the purposes of these regulabe specified shall, when so directed, file reports tions and reports required in addition to those in triplicate on Form TFR-Hi5 with the Special specifically called for herein with respect to Treasury Custody Committee as to the amount any property or transactions affected hereby. of United States currency of any series held by ($j These regulations shall not be deemed them in any capacity. Whenever the currency to authorize any transaction prohibited by or held by any bank or other person within the pursuant to Executive Order No. 8389, as amend- Territory of Hawaii is deemed to be in excess of ed, except such transactions as are necessarily the currency needs of such bank or person, or incidental to the performance of acts specifically in excess of that required under existing circumrequired by these regulations, and these regulastances in the Territory of Hawaii, such bank tions shall not be deemed to affect, alter, or or person, upon the receipt of appropriate notice, limit General Orders No. 51, Office of the shall forthwith deliver to the Special Treasury Military Governor, 9 January 1941. Custody Committee in Hawaii, or to a bank (4) As used in these regulations: when so directed, such amounts of currency as (a) The term "currency" shall not be may be prescribed and shall receive in lieu of deemed to include coins. such currency an equivalent dollar credit with such banking institution in the Territory of (b) The term "person" means an in- Hawaii or within the continental United States dividual, partnership, association, as the delivering bank or person may specify. corporation, or other organization. Currency delivered to the Special Treasury (5) These regulations and any rulings, li- Custody Committee pursuant to this provision censes, instructions, or forms issued hereunder shall be received for the account of the United may be amended, modified, or revoked at any States. time. TITLE II TITLE III (1) Exception to any of the provisions may Attention is directed to the penalties prebe made by means of licenses, rulings, or other- scribed in General Orders No. 118 and to those wise, when it is considered that such exception contained in Section 5(b) of the Trading with is in accord with the purpose of these regula- the enemy Act, as amended. tions and is necessary or desirable in order to (S) J. B. POINDEXTER avoid unusual hardship or is necessary or desir- Governor of Hawaii 764 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

THE NATURE AND SIZE OF THE WAR FINANCING PROGRAM represents unused funds that are likely to result On July $, 1942, the following bulletin was sent in an upward pressure on prices and costs, thus to all members of the United States Treasury Victory raising the cost of living. If these funds are Fund Committee of the Third Federal Reserve District not absorbed through such means as taxation by Mr. Alfred H. Williams, President of the Federal and savings, there will be a scramble for goods; Reserve Bank of Philadelphia and Chairman of the prices will go up and the value of money will Committee. decline as it did in the last World War, when the buying power of the retail dollar was more THE WAR FINANCING TASK OF THE UNITED than halved. STATES Modern war is a highly organized system of What will happen if the Treasury borrows all destruction of all resources. To wage it with needed funds from commercial banks? complete success, incredibly large financial If the Treasury borrows all of the needed funds resources must be effectively mobilized. During from commercial banks, a very large amount of the fiscal year beginning July 1,1942., the United bank credit will be created. This would add States Treasury must provide at least $77 billion to the already large buying power that is accuto meet the vast financialo perations of the Govmulating at a time when the supply of goods ernment. for civilian purchases is rapidly declining. There are two sources from which the Treas- This in turn would further increase the upward ury can get the needed funds: (1) taxes and QL) pressure on prices and costs, and would in the borrowings. Only about $14 billion or less end result in economic difficulties of devastating may be expected from taxes. The remainder— proportions. The resort to bank credit for $53 billion—must be borrowed. war financing, therefore, should be the last The methods used to borrow this colossal unavoidable step in the program. sum are of the utmost importance because they This is the nature of our task—our fight on the will affect prices of materials, wages of labor, home front. We must so finance this war as to rents, and cost of living generally. Upon the minimize the disturbance to our business by way in which funds are obtained for current keeping down the cost of living. Lending to requirements may depend the state of morale of the Government by savers and investors other the people and so may affect the conduct of the than commercial banks accepting demand dewar. The first essential is to borrow as much posits is a vital part in the program of war as possible from current income and as little as financing. Borrowing current savings by the possible through the expansion of bank credit. Treasury, along with taxation, is the most effective means of absorbing rapidly expanding con- How much current income is available for sumer income in the face of the shrinking supply lending to the Government? of purchasable goods. It also enables indivi- Estimates indicate that at the present rate of duals, business concerns and institutions to acnational income the amount of spendable funds cumulate reserves—to store up buying power for in excess of taxes may total as much as $95 the time when drastic adjustments will have to billion, while the volume of goods available for be made in shifting our industry and resources purchase at current prices may be $65 billion from employment for war to employment for or much less. The difference of $30 billion peace. AUGUST 1941 765 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

WAR FINANCING PROGRAM How THE UNITED STATES TREASURY IS MEETING by banks and corporations. They, too, are THE TASK bearer obligations and are issued at par at a fixed rate of interest. The maturity of these certifi- To meet its current financial needs, the Treascates may not exceed one year. ury issues various types of securities which Still another type of obligation is the Treasury provide the safest investment in the world. Note. This is similar to the certificate, except War Savings Bonds ate probably the most faits maturity may extend up to five years. It may miliar type of these securities—Series E for the be purchased by any investor at the time of issue smaller investors and Series F and G for the or in the open market. larger investors, individuals and institutions. For the convenience of the taxpayers—in- These bonds provide an excellent opportunity dividuals, business concerns and others—the for the use of a large part of current income at Treasury offers Tax Savings Notes maturing in attractive yields by the rank and file of the two years. These notes are available for purpopulation. Under the existing arrangement, chase at all times. They are issued in two series the Victory Fund Committee is to give all —one for the smaller taxpayer and the other possible assistance to the War Savings Staff in for the larger. They yield an income only when the sale of Series F and G War Savings Bonds. used- in payment of taxes and may be used for For the larger investors, the Treasury provides that purpose at any time; otherwise, they are other types of bonds. These may be of relatively redeemable at the purchase price. In view of short or long maturity. Some of them are open the increased taxes, it is highly desirable that market issues in the sense that they may be individuals and businesses buy these notes regubought and sold freely in the open market; larly to lessen their burden at tax payment dates. others may carry certain limitations as to their Besides the convenience to the taxpayer, the marketability or ownership. Most of these sale of the notes absorbs spendable funds and bonds may be purchased by anyone, while others helps the Treasury to meet its current requiremay not be purchased by commercial banks rements. ceiving demand deposits. At the time of issue, All these types of Government obligations are the Treasury gives specific descriptions of the available for purchase whenever offered by the securities offered. Treasury through the Federal Reserve Banks There are also several types of short-term iswhich act as Fiscal Agents of the United States. sues designed for those who can put their surplus The most convenient way to subscribe to these funds to work for limited periods of time. The Treasury Bill,1 for example, is issued every week securities is through the local banks which receive and forward applications to the Reserve usually with a maturity of 91 days, although it Bank, although most of these obligations may may run for shorter or longer periods. It is a still be bought in the open market. bearer obligation of the United States, sold on a It is expected that in one way or another, the discount basis through competitive bidding. Victory Fund Organization will be called upon Treasury bills are freely traded in the open marby the Secretary of the Treasury to assist in the ket and may be purchased by any investor. sale of different issues, regular or special, as they Certificates of Indebtedness provide another are offered. Specific terms and conditions will type of security* available to all investors, albe announced and needed directions given. though like the bills they are primarily bought The Victory Fund Committee will play a 1 The following example shows how earnings are increased through vigorous part in the marketing of these secuthe purchase of 91-day bills at a price of $99,909 if held to maturity. rities. The sale of such securities is likely to Income for Amount purchased 91 days Annual income be on a selective and intensified basis. But it is $25,000 $22.75 $91.00 unlikely that the work of the Committee will 50,000 45.50 182.00 100,000 91.00 364.00 require the feverish campaigning that took 1,000,000 910.00 3,640.00 766 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

WAR FINANCING PROGRAM place in the last World War. It will mean close, Corporations, firms and partnerships that may intelligent surveying and canvassing among wish to purchase short-term securities so individual, business and institutional investors as to employ their funds arising from surin every community. It will require a thorough plus earnings, liquidation of current assets preparation in advance of the actual work. such as inventories and receivables, and depreciation accruals. How CAN THE VICTORY FUND COMMITTEE AID Governments and their agencies: states, coun- THE TREASURY? ties, municipalities and school districts. Mutual savings banks. There is a large reservoir of funds which can Insurance companies. be reached by the Victory Fund Organization. Savings institutions of all types—building and Such funds arise principally from current inloan associations and the like. come or savings of one type or another. So Such sources exist in every community, but that an effective approach may be made, memthey must be uncovered and properly listed so bers of the organization should make a thorough that when the call comes from the Secretary of search of their communities for these funds. As the Treasury they can be approached tactfully a suggestion, it should be pointed out that suband intelligently, without needless duplication stantial sources of funds may be found among the of effort that usually results in annoyance or following: apathy. This call will come shortly, and now Individuals who have funds for investment. is the opportunity for the members of the Vic- Trusts, estates and the like that have funds tory Fund Organization to prepare the ground and need suitable securities to meet their for their activities, to understand the problem varied needs. and to anticipate the task that is surely ahead Pension funds—private and public—in need of them. of steady income. All members of the Victory Fund Organiza- Labor organizations. tion have a real job to do in the all-out efforts Educational, religious, and endowed institu- to win the war and to prevent or minimize tions which require earnings to meet their economic dislocations. obligations. ALFRED H. WILLIAMS, Chairman Fraternal and social organizations of all types. Victory Fund Committee. AUGUST 1942. 767 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SURVEY OF COMMERCIAL LOANS AT MEMBER BANKS In order to obtain information on the nature of borrowers. About one-third of the loans of current bank lending and the extent to which and renewals currently being made are directly banks are participating in financingw ar produc- to aid in the production and distribution of war tion, the Board of Governors and the Reserve goods, while about 40 per cent of all new loans Banks conducted a special survey of commercial are for this purpose, indicating a continuing and industrial loans made by member banks over trend toward war financing. In addition, a conthe period April 16 to May 15, 1942., inclusive. siderable part of the "non-war" loans are to Reports were obtained from 5,362. banks on businesses vital to civilian wartime welfare. 2..2. billion dollars of loans and renewals made Thirty per cent of all loans in dollar volume during that period. Detailed information re- are to borrowers having assets of over $5,000,000 ported on each loan and renewal included each, while only 10 per cent are to those having amount of the advance, business of the borrower, assets of less than $50,000 each. In number of approximate total assets of the borrower, loans, however, nearly half of the total are to maturity of the loan, rate of interest charged, borrowers with assets of less than $50,000 each. and purpose of the loan as between "war" COVERAGE OF THE SURVEY and "non-war" uses. The survey provides the only nation-wide information ever obtained in The 5,361 banks participating in the survey such detail regarding the nature of business loans constitute 81 per cent of all member banks, and and borrowers at banks. Although limited as on December 31, 1941, accounted for 98 per cent to scope and period covered, the information of the commercial loans of all member banks obtained throws light on the loan operations of and 91 per cent of the commercial loans of all commercial banks in wartime and provides some insured banks. Virtually complete coverage basis for interpreting future developments in was attained for central reserve and reserve city this area. Summary results of the survey are banks, and reporting country banks held 89 per published in this BULLETIN, and more detailed cent of the total of commercial loans of all data and conclusions will be published later.1 country banks at the beginning of the year. Results of the survey indicate that of all com- On May 15 the reporting banks had outstanding • mercial and industrial loans currently made by 8 billion dollars of commercial and industrial banks, a dominant portion goes to borrowers loans; since this was 2.50 million dollars less engaged in wholesale and retail trade and in the than on April 15, repayments in the survey manufacture of nondurable consumers' goods— period exceeded new loans and renewals. food, liquor, textiles, wearing apparel, and the Member banks were asked to provide detailed like. Building and construction companies and information on each loan and renewal made for manufacturers of metal products also borrow commercial or iridustrial purposes during the large amounts, particularly at this time because reporting period, except that, in order to avoid of their participation in providing supplies and excessive reporting cost, no information was equipment for war purposes. Sales finance requested from very large banks on loans under companies constitute another important group $5,000, from smaller banks in large cities on loans under $1,500, or from banks in cities of iThis survey of commercial loans was planned by the Board's less than 100,000 population on loans under Divisions of Research and Statistics and of Bank Operations in consultation with Federal Reserve Banks and some member banks. The $1,000. Banks did, however, indicate the total information was collected and compiled into district totals by the Reserve Banks, and national totals were prepared at the Board's office. of such small loans not reported in detail and G. L. Bach of the Board's Division of Research and Statistics has been largely responsible for supervision of the survey, analysis of results, only 8 per cent of total commercial and indusand preparation of this article, under the general direction of Woodlief Thomas, Assistant Director of that Division, and J. E. Horbett, As- trial loans made by participating banks fell into sistant Chief of the Division ef Bank Operations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SURVEY OF COMMERCIAL LOANS AT MEMBER BANKS this unreported small-loan group. Therefore each industrial group constitutes of the total, the loans fully reported and included in the classified according to purpose of loan. accompanying tables comprise 92. per cent of Of the total amount of loans and renewals all commercial advances made by the partici- covered by the survey, wholesale and retail pating banks during this period. trade firms account for 640 million dollars, or Since only commercial and industrial loans to nearly 30 per cent. In number of loans 40 per customers were covered, agricultural, real estate, cent were to borrowers in*these trades. Buildsecurity, and other loans, including commercial ing and construction companies, food, liquor, paper purchased in the open market, were not and tobacco manufacturers, and metal producers reported. In order to limit the burden of re- (including ordnance, shipbuilding, and muniporting, information was not requested on out- tions) each borrowered around 2.50 million, or standing advances but only on loans newly made slightly over 10 per cent of the total. Textile, or renewed within the reporting period. Be- leather, and apparel manufacturers and finance cause of this fact and because the survey covered companies were' also important borrowers. only one month, it is impossible to tell to what When combined, all manufacturing and mining extent the loan characteristics revealed apply to firms accounted for nearly 900 million, or almost bank loans in other periods. It is believed, 40 per cent of the total, exceeding somewhat however, that the results provide information the wholesale and retail trade group. regarding the nature of loans and characteristics As might be expected, wholesale and retail of bank borrowers that is significant for general trade firms were more prominent among non-war purposes as well as with reference to the par- borrowers than in the total, exceeding by a subticular period covered. stantial margin even the non-war loans of all manufacturing industries. It is likely that firms RELATIVE IMPORTANCE OF INDUSTRY GROUPS engaged in trade normally borrow substantial Table I summarizes the information received amounts to finance inventories and accounts refrom all reporting banks as to business of ceivable; at this time borrowing to carry inborrower and purpose of loan in relation to creased inventories is evidently larger than the war effort. It shows also the per cent that usual. At department stores, inventories at the TABLE I COMMERCIAL AND INDUSTRIAL LOANS AND RENEWALS AT MEMBER BANKS, BY PURPOSE AND BUSINESS or BORROWER APRIL 16-MAY 15, 1942 Amounts in millions of dollars Per cent of all businesses Business of Borrower Total1 p F u o r r p o w s a e r s p n u o r F n p o - o w r se a s r n w M o a n r i - x w a e n d a d r Total p F u o r r p o w s a e r s p n u o F r n p o - o w r s a e r s w M ar i x a e n d d Wholesale and retail trade, including commodity dealers. 641.4 78.1 531.5 28.5 29.0 11.1 37.4 34.6 Total manufacturing and mining 883.7 368.5 470.2 44.0 39.9 52.2 33.2 53.3 Metal mining and products (including transportation equipment, shipbuilding, ordnance, and munitions) 249.2 220.1 25.3 3.7 11.5 31.2 1.8 4.6 Petroleum and products 52.9 7.0 42.8 3.1 2.4 1.0 3.0 3.7 Chemicals, drugs, rubber, and products 27.6 12.9 13.3 1.4 1.2 1.8 .9 1.7 Textiles, apparel, leather, and products 189.6 55.3 118.8 15.4 8.5 7.8, 8.4 18.7 Food, liquor, and tobacco 240.6 32.8 193.9 13.4 10.8 4.7 13.7 16.2 All other manufacturing and mining. 123.8 40.4 76.2 6.9 5.5 5.7 5.4 8.4 Building and construction operations 263.4 209.0 51.6 2.4 11.9 29.6 3.6 2.9 Sales finance and personal loan- companies 176.4 1.7 173.6 .8 8.0 .2 12.2 1.0 Public utilities, transportation, and communication 49.7 14.3 32.8 2.4 2.2 2.0 2.3 2.9 Services: Hotels, restaurants, amusements, repair shops, professional services, etc 41.6 6.4 34.1 1.1 1.9 .9 2.4 1.3 AH other 158.3 28.1 126.0 3.3 7.1 4.0 8.9 4.0 Total 2,214.5 706.2 1,419.9 82.4 100.0 100.0 100.0 100.0 1 Includes a small amount of loans not classified as to purpose. AUGUST 1942. 769 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SURVEY OF COMMERCIAL LOANS AT MEMBER BANKS end of May were two-thirds larger than a year made is for the purpose of financing war activity, earlier. Reports indicate that wholesale in- a generalization which applies to nearly every ventories are also considerably above the levels industry group. To borrowers engaged in of the past few years. manufacturing and mining about 50 per cent Aside from trade borrowers, manufacturers of new loans and 40 per cent of renewals were of nondurable consumers' goods—food, clothing, for war purposes. These proportions of war and the like—and finance companies were the loans are comparable with an estimate pubheaviest borrowers for non-war purposes. lished in the July BULLETIN, that nearly 50 per War loans were made largely to manufacturers cent of industrial production is now for war of metal products and to building and construc- purposes. The relative importance of war tion companies, reflecting the heavy concentra- activity and of war loans is, of course, substantion of war activity in these lines. War loans tially less in the fields of distribution and also included substantial advances to whole- services. sale and retail firms and to textile and clothing Reflecting widespread conversion to war promanufacturers. duction and direct controls over non-war output, metal mining and manufacturing LOANS FOR WAR AND NON-WAR PURPOSES showed about 90 per cent of its loans for direct In reporting loans and renewals made directly TABLE II to facilitate war production, banks were asked COMMERCIAL LOANS AND RENEWALS AT MEMBER BANKS, to include all advances for activities in connec- FOR WAR AND NON-WAR PURPOSES APRIL 16-MAY 15, 1942 tion with armed service contracts or subcontracts and for all other activities, such as mer- Amounts d o in ll a m rs illions of Per cent of all purposes chant shipbuilding, which directly further the Purpose All All w pr a e r s u p m ro p g t r i a o m n . w a I s n t c o a s b e e s i o n f f r a e v a o so r n o a f b l w e a d r o d u e b s t i , g t n h a e - lo a r n a e n d - s l N oa e n w s ne R w e a - ls lo a r a n e n d - s l N oa e n w s ne R w e a - ls newals newals tion. While the line of distinction between War 706.2 515.7 190.4 31.9 39.3 21.1 war and non-war loans was necessarily some- Non-war 1,419.9 737.1 682.8 64.1 56.2 75.6 Mixed 82.4 56.0 26.4 3.7 4.3 2.9 what vague and dependent on the discretion of Total1 2,214.5 1,311.4 903.1 100.0 100.0 100.0 the reporting banks, it is thought that the segregation obtained is on the whole a reason- 1 Includes a small amount of loans not classified as to purpose. ably accurate one. Nevertheless, since the war- war purposes, while 85 per cent of new loans to loan category includes only loans directly building and construction companies were for facilitating the production or distribution of war such purposes. In all other industry groups, goods, many loans contributing less directly to however, non-war still exceeded war advances. war output, but nonetheless highly essential to Finance companies, wholesale and retail trade national welfare, are included in the non-war firms, service industries, petroleum producers, group. This is especially true in such indus- and food, liquor, and tobacco manufacturers tries as food processing and public utilities. all showed a heavy preponderance of non-war Table II shows the proportion of new loans borrowing, although in numerous cases the and renewals for war, non-war, and itiixed pur- non-war activity financed was undoubtedly poses. Table VI at the end of this article shows vital to civilian wartime welfare. The textiles, similar information for each industry group. apparel, and leather goods, and the chemical, While only slightly over 30 per cent of combined drugs, and rubber groups, engaged to a conloans and renewals were directly for war pur- siderable extent in supplying war needs, neverposes, for new loans alone this figure is 40 per theless showed relatively small proportions of cent. This indicates, as would be expected, borrowing for war purposes. In view of the that an increasing proportion of loans being short period covered, special factors may have 770 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SURVEY OF COMMERCIAL LOANS AT MEMBER BANKS appreciably influenced the results in particular banks, amounting to one-third of the total for industries. each city group compared with one-fourth at country banks. While trade loans bulked LOANS BY CLASSES OF BANKS largest for each class of bank, they were, as Table III shows the division of loans among shown in Table IV, relatively greatest at councentral reserve city, reserve city, and country try banks, amounting there to 35 per cent of all banks, and Table IV at the foot of the page loans. At reserve city banks trade loans were 30 per cent of the total, and at central reserve TABLE III city banks less than a fourth. Borrowings by COMMERCIAL LOANS AND RENEWALS AT MEMBER BANKS, food, liquor, and tobacco manufacturers, and BY CLASS OF BANK AND PURPOSE OE LOAN APRIL 16-MAY 15, 1942 also by textile, leather, and apparel manufacturers were relatively and absolutely largest Amounts in millions of Per cent of all purposes dollars at central reserve city banks. Loans to pro- Purpose C re c e s i n e ty t r r v a e l Re c s i e ty rve Country C re c e s n i e t t r y r v a e l Re c s i e ty rve Country b du u c il e d r i s n g o f a n m d et c a o l n s a t n ru d c ti p o e n tr o c l o e m um pa n p i r e o s, d u to ct s u , ti t l o ities, and to finance companies were heaviest at War 247.2 344.3 113.7 33.6 34.0 24.4 Non-war 449.2 634.6 335.2 61.0 62.7 71.9 reserve city banks. More loans were made by Mixed 40.1 30.2 12.2 5.4 3.0 2.6 country banks to borrowers engaged in render- Total* 736.8 1,011.6 466.2 100.0 100.0 100.0 ing services than by either of the other classes 1 Includes a small amount of loans not classified as to purpose. of banks. shows the relative importance of different industries among the borrowers at each group RELATIVE IMPORTANCE OF LARGE AND SMALL of banks. Central reserve city banks ac- BORROWERS counted for one-third of all loans, reserve city Table V shows loans and renewals by busibanks for almost one-half, and country banks ness and by size of borrower, as measured by for the remainder. total assets, indicating the portion of loans to War loans were relatively greater at city each industry group going to small, medium- TABLE IV COMMERCIAL LOANS AND RENEWALS AT MEMBER BANKS, BY CLASS OF BANK, PURPOSE, AND BUSINESS OF BORROWER APRIL 16-MAY 15, 1942 [In millions of dollars] Central reserve city banks. Reserve city banks Country banks Business of Borrower Total1 War N w o a n r - w n M o a n r i x -w a e n d a d r Total1 War N w o a n r - w n M o a n r i x -w a e n d a d r Total1 War N w o a n r - w n M o a n r i - x w a e n a d d r Wholesale and retail trade 177.4 28.5 130.4 18.5 302.4 37.9 256.7 7.3 161.6 11.7 144.3 2.8 Total manufacturing and mining 364.9 133.0 212.3 19.6 372.9 176.8 178.7 16.7 145.9 58.7 79.0 7.6 Metal mining and products 90.9 81.6 8.4 .9 122.0 108.6 11.3 1.9 36.4 29.8 5.6 .9 Petroleum and products 6.2 3.2 2.3 .6 34.4 2.3 30.2 1.9 12.4 1.5 10.3 .5 Chemicals, drugs, rubber 11.4 5.5 5.1 .8 12.7 6.3 6.0 .5 3.5 1.2 2.1 .2 Textiles, apparel, leather 83.7 14.6 61.3 7.8 73.7 28.5 40.2 4.9 32.2 12.2 17.3 2.8 Food liquor, tobacco .... 138.3 18.0 112.2 8.1 75.6 10.6 60.7 4.0 26.7 4.2 20.9 1.3 Other mfg. and mining 34.5 10.2 22.9 1.4 54.5 20.4 30.4 3.6 34.8 9.8 22.8 1.9 Building and construction 68.7 63.2 5.3 .1 133.0 109.2 21.8 1.3 61.8 35.8 24.5 1.0 Finance companies. 66.3 2 65.8 .5 88.7 1.6 86.8 .2 21.4 .1 21.0 .1 Utilities, transportation, communication . . .... 12.5 5.2 6.5 .9 27.1 7.1 18.8 1.2 10.0 2.0 7.6 .4 Services 5.6 .9 4.7 2 17.8 4.2 12.5 1.0 18.2 1.3 16.7 .1 All other 41.3 16.5 24.3 .5 69.8 7.5 59.4 2.6 47.2 4.1 42.3 .2 Total 736.8 247.2 449.2 40.1 1,011.6 344.3 634.6 30.2 466.2 113.7 335.2 12.2 1 Includes a small amount of loans not classified as to purpose. 2 Less than $50,000. AUGUST 1942. 771 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SURVEY OF COMMERCIAL LOANS AT MEMBER BANKS sized, and large firms. Less than 10 per cent Very large firms accounted for the bulk of of the dollar amount of all loans were to bor- the borrowing of finance companies, public rowers having assets of under $50,000 each; utilities, and food, liquor, and tobacco, manuonly in the service industries and the miscel- facturers. In most industries, borrowers in the laneous group was this percentage much higher. $50,000 to $5,000,000 asset size groups pre- The remaining 90 per cent of advances were dominated, this concentration being especially evenly divided between the $50,000 to $500,000, evident in petroleum mining and manufacturing, the $500,000 to $5,000,000, and the over building and construction operations, textile, $5,000,000 asset size groups, although the distriapparel, and leather production, and wholebution varied considerably as between industries. sale and retail trade. In number of loans, for which information These figures show the portion of total loans is not shown in the tables published in this in each industry going to different sized firms. BULLETIN, 46 per cent were to borrowers in the Without comparison with information on thesmallest size group and 86 per cent to those distribution of firms in each industry and on the with assets of less than $500,000. The bulk dollar volume of business done by each size of the loans of central reserve city banks, by group, however, it is impossible to generalize dollar volume, was to borrowers in the two from these data as to the extent to which the largest asset-size groups; most of those of reserve needs of different sized borrowers are supplied city banks were to borrowers in the two middle groups; while at country banks over by banking funds. Additional data and more three-fourths of all loans were to borrowers detailed analysis bearing on this and other points in the two smallest size groups. will be published in a later article. TABLE V COMMERCIAL LOANS AND RENEWALS AT MEMBER BANKS, BY BUSINESS AND ASSET SIZE OF BORROWER APRIL 16-MAY 15,1942 Amounts in millions of dollars Per cent of industry total Business of Borrower Total1 $ U 50 n , d 0 e 0 r 0 $ $ 5 5 0 0 ,0 0 0 ,0 0 0 t 0 o $ $ 5 5 ,0 0 t 0 0 o 0 ,0 ,0 0 0 0 0 $ a 5 n ,0 d 0 0 o , v 0 e 0 r 0 Total1 $ U 5 n 0, d 0 e 0 r 0 $ $ 5 5 0 0 t 0 , o 0 ,0 0 0 0 0$ $ 5 5 ,0 0 0 t 0 o 0 ,0 ,0 0 0 0 0 $ a 5 n ,0 d 0 0 o , v 0 e 0 r 0 Wholesale and retail trade 641.4 79.5 223.7 191.9 143.7 100.0 12.4 34.9 29.9 22.4 Total manufacturing and mining 883.7 42.8 233.2 299.2 305.4 100.p 4.8 26.4 33.9 34.6 Metal mining and products 249.2 8.7 51.5 92.0 95.5 100.0 3.5 20.7 36.9 38.3 Petroleum and products 52.9 4.3 1-6.5 25.5 6.5 100.0 8.1 31.2 48.2 12.3 Chemicals, drugs, rubber 27.6 1.6 5.5 7.4 13.0 100.0 5.8 19.9 26.8 47.1 Textiles, apparel, leather 189.6 11.4 74.1 70.8 32.8 100.0 6.0 39.1 37.3 17.3 Food, liquor, tobacco 240.6 7.7 39.9 58.9 133.1 100.0 3.2 16.6 24.5 55.3 Other manufacturing and mining 123.8 9.0 45.7 44.5 24.4 100.0 7.3 36.9 35.9 19.7 Building and construction 263.4 23.9 105.3 110.3 21.3 100.0 9.1 40.0 41.9 8.1 Finance companies 176.4 3.9 30.5 35.9 106.0 100.0 2.2 17.3 20.4 60.1 Utilities, transporation, communication.... 49.7 3.7 8.5 8.8 28.5 100.0 7.4 17.1 17.7 57.3 Services 41.6 13.2 15.4 8.6 4.0 100.0 31.7 37.0 20.7 9.6 All other 158.3 34.9 59.7 34.9 27.6 100.0 22.0 37.7 22.0 17.4 Total 2,214.5 201.9 676.3 689.6 636.4 100.0 9.1 30.5 31.1 28.7 1 Includes a small amount of loans not classified as to size of borrower. 772- FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SURVEY OF COMMERCIAL LOANS AT MEMBER BANKS TABLE VI COMMERCIAL LOANS AND RENEWALS, AND NEW LOANS, AT MEMBER BANKS, BY PURPOSE AND BUSINESS OF BORROWER APRIL 16-MAY 15, 1942 Amounts in millions of dollars Per cent of industry total Business of Borrower Mixed Mixed Total1 War Non-war war and Total1 War Non-war war and non-war non-war All loans and renewals 2,214.5 706.2 1,419.9 82.4 100.0 31.9 64.1 3.7 New loans only 1,311.4 515.7 737.1 56.0 100.0 39.3 56.2 4.3 Wholesale and retail trade Loans and renewals 641.4 78.1 531.5 28.5 100.0 12.2 82.9 4.4 New loans only . 377.7 62.1 290.0 24.2 100.0 16.4 76.8 6.4 Total manufacturing and mining Loans and renewals 883.7 368.5 470.2 44.0 100.0 41.7 53.2 5.0 New loans only . ... 495.5 244.9 226.0 24.2 100.0 49.4 45.6 4 9 Metal mining and products Loans and renewals 249.2 220.1 25.3 3.7 100.0 88.3 10.2 1 5 New loans only 165.8 151.2 12.4 2.0 100.0 91.2 7.5 1.2 Petroleum and products Loans and renewals 52.9 7.0 42.8 3.1 100.0 13.2 80.8 5.8 New loans only 26 0 6.2 17.5 213 100.0 23 7 67 3 8 7 Chemicals, drugs, rubber Loans and renewals .... 27.6 12.9 13.3 1.4 100.0 46.9 48.1 5.0 New loans only 11.8 5.4 5.8 .5 100.0 46.1 49.5 4 3 Textiles, apparel, leather Loans and renewals 189.6 55.3 118.8 15.4 100.0 29.2 62.7 8 1 New loans only # 102.8 33.0 63.0 6.8 100.0 32.1 61.3 6.6 Food, liquor, tobacco* Loans and renewals 240.6 32.8 193.9 13.4 100.0 13.6 80.6 5.6 New loans only 122.5 25.4 88.3 8.6 100.0 20.8 72.1 7.0 Other manufacturing and mining Loans and renewals 123.8 40.4 76.2 6.9 100.0 32.7 61.5 5.6 New loans only . 66.7 23.7 38.9 4.0 100.0 35.5 58.3 6.0 Building and construction Loans and renewals 263.4 209.0 51.6 2.4 100.0 79.3 19.6 .9 New loans only 192.7 165.1 25.8 1.5 100.0 85.7 13.4 .8 Finance companies Loans and renewals 176.4 1.7 173.6 .8 100.0 1.0 98.4 .4 New loans only 103.5 1.3 101.5 .7 100.0 1.2 98.1 .7 Utilities, transportation, communication Loans and renewals . 49.7 14.3 " 32.8 2.4 100.0 28.8 66.1 4.9 New loans only 31.9 12.4 17.8 1.7 100.0 38.7 55.8 5.3 Services Loans and renewals 41.6 6.4 34.1 1.1 100.0 15.5 81.8 2.5 New loans only. 21.0 4.8 15.2 1.0 100.0 22.7 72.3 4.8 All other Loans and renewals 158.3 28.1 126.0 3.3 100.0 17.7 79.6 2.1 89.1 25.2 60.8 2.7 100.0 28.3 68.2 3.0 1 Includes a small amount of loans not classified as to purpose. AUGUST 1942. 773 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

. REPORT TO THE CUBAN GOVERNMENT OF THE AMERICAN TECHNICAL MISSION TO CUBA In September 1941, at the request of the Cuban tions. What seem to be among Cuba's principal Government, the Department of State organized problems in the fields of money, foreign exthe American Technical Mission to Cuba change, and bank credit are summarized briefly to recommend a program of monetary and banking reform in that country. The Treasury below so that the recommendations contained Department and the Board of Governors were in the body of the report may appear in their requested to appoint members of their staffs to proper setting. serve on the Mission, which was later augmented by a representative of the Farm Credit CUBA'S DEPENDENCE UPON DOLLAR CURRENCY Administration. The Mission spent a number AND FOREIGN BANKS of weeks in Cuba studying material made available to it and interviewing Government.officials, For over 40 years the United States dollar has bankers, and other persons familiar with Cuban been legal tender in Cuba. Until recently banking and credit needs. On November 2.6 dollar currency and dollar deposits have been it submitted its first report to the Cuban Governthe principal medium of exchange. Since the ment, dealing with temporary measures to meet the immediate situation. A second report was closing of three large Cuban banks in the desubmitted on April zz, 1942., dealing with the pression following the last war, branch offices establishment of a Cuban Central Bank and the of United States and Canadian banks have reconstitution of the Cuban Stabilization Fund. handled most of Cuba's banking business. The text of this second report, which has recently Cuba has been to a large extent an appendage of been made public by the Cuban Government, is given below, with some elimination or abbrevi- the United States dollar monetary system. ation of minor headings to conform to BULLETIN This status had some undoubted advantages. practice. A bill embodying most of the The money of Cuba, being dollars, could not principal features of the report is now before the depreciate in terms of the money of the United Cuban Congress. States, with which most of Cuba's trade took The Mission continues in existence and is considering the problem of agricultural credit in place. The branches of the United States and Cuba as well as questions that have arisen in Canadian banks were exceptionally strong. connection with the Central Bank and Stabil- Moreover, additional bank credit could be made ization Fund project. Its qhief is H. D. White available from the head offices whenever the of the Treasury. The other members of the branches felt that there was a good opportunity Mission are G. A. Eddy, F. A. Southard, Jr., for additional loans. and H. R. Spiegel, appointed from the Treasury Department; W. R. Gardner and G. B. Vest, from the Board of Governors of the Federal DISADVANTAGES OF AN ALL-DOLLAR SYSTEM Reserve System; and A. T. Esgate, from the Against these advantages, however, there Farm Credit Administration. have been several disadvantages, the importance INTRODUCTION of which may have increased considerably since 19x9. The Mission began its work with the realiza- Since a Cuban bank of issue could not have tion that Cuban monetary and credit problems issued United States dollars, Cuba's retention of differ materially from those in the United States dollars as its chief form of money made the esand that it is essential to devise and recommend a program suited to Cuba's special conditions. tablishment of a Cuban Central Bank virtually The Mission therefore has studied the existing impossible. No Cuban authority could be Cuban monetary and credit organization and charged with responsibility for the adequacy of, practice in order to provide a factual background or given remedial powers over, the volume of against which to formulate its recommenda- currency and bank credit in Cuba. The total 774 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE AMERICAN TECHNICAL MISSION TO CUBA quantity of currency, deposits, and bank loans would be available to the Cuban economy for in Cuba tended to be the resultant of the balance financing imports, repaying foreign indebtedof international payments and the foreign banks' ness, and the like. By using dollar currency judgment of the risks of potential bank loans. internally, Cuba has postponed use of (but not These are sometimes (though not always) un- lost) the opportunity to import more machinery, desirable regulators of a nation's supply of other productive equipment, or consumption money and credit and could hardly prove a goods, to liquidate foreign debts, or to make satisfactory arrangement for a mature country. investments abroad. Many of the bankers themselves have regretted During certain periods, furthermore, a loss to the situation, since, while they were interested the Cuban economy may have been involved in primarily in certain types of banking business, some (but by no means all) of the dollar deposits almost all the country's credit needs devolved in banks in Cuba against which the banks hold upon the foreign banks. dollar balances abroad or other foreign assets. There have likewise been no Central Bank It may be remarked, however, that the ecorediscounting facilities in Cuba to which banks nomic cost of using dollars in Cuba does not could turn when in need of additional currency mean that foreign nations or foreign banks have or lending capacity after their own loanable been taking unfair advantage of Cuba. The funds were fully utilized. Although the foreign foreign investments made in Cuba exceed the branch banks could draw upon their home offices total imports of dollars many times over. when they wished to, Cuban-owned banks have Cuba on balance has received from abroad far had to rely upon their own resources or borrow more than she has sacrificed by using dollars as either from competitors or from banks abroad. domestic money. This lack of rediscounting facilities has doubtless been one of the factors retarding the develop- DISADVANTAGES OF COMBINED PESO-DOLLAR ment of Cuban-owned banks. There are today SYSTEM only four such banks, of which three are rela- Several acts and decree laws in the years tively small, and of which the combined de- 1932.-1938 ordered the coinage of specified quanposits are less than 2_o per cent of the total tities of silver pesos. This marked the first deposits in Cuba. important breach in the use of dollars in Cuba. Use of any foreign currency as a domestic The purchase of silver at the market price and medium of exchange involves a substantial cost its issuance as money (almost entirely as silver to a nation's economy. For Cuba the use of certificates secured peso for peso by coins) at dollar currency is fully as costly as if its entire the same monetary value as the United States stock of domestic hand-to-hand currency con- silver dollar gave rise to important seigniorage sisted of gold coin purchased abroad at its full profits, which covered part of the Government's monetary value. In modern monetary systems expenses during those troubled years of Cuban it has become accepted practice to use as domes- history. As early as 1939 peso silver certificates tic means of payment (in addition to bank de- had almost entirely replaced dollar currency in posits) notes or coins the intrinsic value of public circulation, and about half of the bank which is far below their monetary value. They deposits were denominated in pesos. may, however, be secured in part by valuable Banks maintain almost fully covered positions metallic or foreign exchange reserves. If the in both currencies at all times. That is, they dollar currency in Cuban circulation were re- maintain their peso assets equal to their peso placed by an issue of Cuban currency, the dollars liabilities and their dollar assets equal to their could enter an official exchange reserve which, dollar liabilities. To do otherwise would exto the extent that they were not required as a pose them to risks of fluctuations in the rate of reserve for the newly issued Cuban currency, exchange between dollars and pesos. AUGUST* 1941 775 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE AMERICAN TECHNICAL MISSION TO CUBA Cuba has made considerable progress away the legal tender equality of dollars and pesos in from the dollar system which formerly pre- Cuba has prevented the peso from going to a vailed; nevertheless, the present mixed system considerable premium. The right to import also contains several pronounced shortcomings. dollars to make peso payments has kept the rate There being still no Central Bank, there is still down. In the process many millions of dollars no "lender of last resort" or bank of issue where have again gone into general Cuban circulation. banks can obtain additional peso currency or Were they acquired instead by an official agency peso lending power when needed. At times charged with the responsibility of stabilizing there has been considerable stringency of peso the foreign exchange value of the peso, this lending power. Since certain types of loans are agency could give far more effective support to now normally made only in pesos (as a result of the peso, when necessary, than would a subsethe law of July 8, 1939, for which see Section quent private reexport of these dollars. VI), this has been an added difficulty for certain Acquisition of a stock of imported gold or types of potential borrowers. foreign exchange represents the same economic The development of peso currency and de- cost to Cuba as the import of dollars described posits has not included the acquisition of an above. To the extent necessary to build up a official store of international monetary reserves stock sufficient to give reasonable support to by use of which the value of the peso in foreign the peso during any future periods of adverse exchange markets can be supported. The prin- inter-currency payments, this cost is fully justicipal type of such reserves which the Cuban fied. Moreover, during the present war, when Government now holds and could employ for many types of imports are not available and this purpose is its store of silver, which might when its exports promise to be exceptionally be sold abroad at the market price for silver bul- large, Cuba may inevitably acquire a stock of lion, far below its statutory peso value. This gold or dollars representing the postponement silver can be made available for export, how- of a greater amount of potential imports than ever, only by retiring the peso silver certificates has ever been involved in Cuba's use of dollar against which the coined silver is held as currency. Nevertheless, the fact remains that security. Cuba does not have an effective arrangement for For some time after the appearance of the first stabilizing the foreign exchange value of the issues of peso currency, the Cuban balance of peso when the current balance of inter-currency payments (supplemented by some export of dol- payments turns against it. lars replaced by the new pesos) sufficed to keep There is a strong tendency on the part of the peso close to parity with the dollar. In Cubans to keep savings and investments in dol- 1938 and still more in 1939, however, the balance lars. Although in part these dollar savings turned against the peso. As already stated, may be invested in Cuba, they tend in part to Cuba had no official agency with resources ac- become capital exports to the United States. ceptable in the settlement of international This is, under ordinary circumstances, a severe balances. Consequently the value of the peso drain upon the Cuban economy. Cuban prosdeclined in terms of other currencies until the perity under normal conditions will require exlower rate was sufficient to restore balance be- tensive local investment of pesos annually. tween the payments into pesos and payments out of pesos. Transfers out of pesos were no WEAKENED DEMAND FOR MORTGAGES doubt increased by fears of still further depre- The public's willingness to invest in Cuban ciation. mortgages is reported to have been shaken by Since then the balance of inter-currency pay- moratorium legislation during the 1930's. The ments has carried the peso exchange rate back Mission was unable to explore this question to par with the dollar and even above. Only extensively but testimony which it received 776 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE AMERICAN TECHNICAL MISSION TO CUBA pointed to the conclusion that this legislation is actually within their powers. The solution has given rise to fear of similar legislation in of many economic and financial difficulties far subsequent periods of economic difficulty and exceeds their capacity, no matter how skillful in consequence seems to have restricted the sup- the management. Such institutions have not ply of funds seeking investment in Cuban been able to shield other countries from severe mortgages. economic maladjustments. Cuban conditions present special difficulties, and future events are PAUCITY OF FACILITIES FOR GOVERNMENT sure to create new ones. Moreover, a poorly BORROWING administered central bank or stabilization fund The Government has faced almost insur- could add greatly to the difficulties that already mountable difficulties in borrowing money in exist. Cuba. Inability to engage in irresponsible or Nevertheless, properly constituted and exuneconomic borrowing should not, of course, pertly managed, these institutions can provide be regarded as a difficulty. There are, however, that pooling and utilization of resources and some circumstances under which a national that strong determination of policy which can Government and official credit agencies should furnish essential help to meet emergencies and be able to borrow. Moreover, domestic bor- be of important assistance in fostering economic rowing is frequently strongly preferable to development. Moreover, a good central bank incurring debts in a foreign currency. It seems is a prerequisite to many further measures to clear that Cuba's potential well-being will be promote economic welfare. In the following hampered unless on the one hand investors' recommendations the Mission has endeavored to confidence in obligations of the Cuban Govern- set forth the characteristics of a central bank and ment is thoroughly justified and unless on the stabilization fund which seem to it best calcuother the Government and its agencies have lated to meet the situation in Cuba. Superior facilities in Cuba for floating economically de- management alone can assure the successful sirable loans. evolution of these institutions. There are almost no lending agencies in Cuba The detailed recommendations relating to the other than banks, and only a limited market for establishment of a central bank and reconstitucorporate securities. Other nations have de- tion of the Cuban Stabilization Fund are preveloped special institutions to meet particular sented on the following pages. types of credit needs, such as agricultural loans, I. CAPITAL home loans, industrial loans, etc. Some of these institutions have required considerable The needs of the proposed Central Bank for Government support. capital would appear to be met satisfactorily by an original subscription of 5 million pesos of RECOMMENDATIONS paid-in cash subscriptions and 3 million pesos to The American Technical Mission to Cuba be credited to capital surplus and to be paid for recommends the establishment of a central bank by Cuban Government securities. Additional and the reconstitution of the Cuban Exchange shares should be authorized for subsequent cash Stabilization Fund. A well-managed central' sale to allow for future growth. bank and a stabilization fund with more ade- Eight million pesos of capital funds at the quate resources would be able to ameliorate a outset seems well within the means of the number of the conditions now prevailing in Government and the banks. At the same time Cuba which were cited in the introduction. it is a sufficient sum to serve the Central Bank's The Mission, however, does not wish to en- need for capital. The ratio between this capital courage expectations that a central bank and a and surplus and the Bank's prospective liabilities stabilization fund will accomplish more than compares favorably with similar ratios found in AUGUST 1942. Ill Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE AMERICAN TECHNICAL MISSION TO CUBA other central banks. The ratio between this basis for compulsory subscriptions to Central capital and surplus and the Bank's prospective Bank stock. assets subject to possible depreciation is also The deposits of a commercial bank are a fair favorable. This total of capital funds should measure of its size and importance. The Misgive the Cuban public confidence in the solvency sion has therefore recommended that they be and soundness of their Central Bank while on used as the basis for determining the subscription the other hand avoiding over-capitalization. of each bank to shares of the Central Bank. It It should be possible for the Bank, under reason- is reasonable that a bank's participation in the ably favorable circumstances, to earn enough to Central Bank should be roughly in proportion pay a fair return to its shareholders. to its size and importance in the banking community. SOURCES AND RATES OF SUBSCRIPTIONS Subscriptions equal to 2. per cent of deposits An equitable means of raising this capital are not an onerous burden on the banks; a lower appears to be as follows: Each bank conducting rate would not yield a sufficiently substana checking-account business in the Republic of tial sum. Cuba will be required to subscribe an amount As their deposits increase banks should equal to 2. per cent of its total deposits (both periodically—probably once a year—be required demand and savings) in some designated base to increase their holdings of the Central Bank's period for shares designated as Class A, and the stock to equal 2. per cent of their deposits Government of the Republic will subscribe for averaged over the preceding year or some other enough additional shares designated as Class B practical period. Similarly, should there be a to bring the total paid-in cash capital to 5 mil- decrease in the deposits of a bank, there should lion pesos. In the event of any impairment of be a corresponding reduction in its requirement capital, Class A shares should be given pre- to hold Central Bank shares, although it might ference over the Class B shares. At current well be provided that a bank would not be deposit levels, the banks would subscribe about compelled to sell shares back to the Central 3 million pesos and the Government about 2. Bank under these circumstances in case it wished million. As set forth in greater detail below, to retain them. the Government will provide the capital surplus Whenever commercial banks are required to in its entirety. purchase additional shares, it seems appropriate A word of explanation is perhaps necessary on that the Government be permitted, at its disbasing banks' subscriptions on their deposits cretion, to resell to the Central Bank a like rather than on their capital as is the method in number of its shares, which it had purchased for many other countries. A majority of the banks cash. In this way the paid-in capital stock operating in Cuba are branches of large foreign would be maintained at least at 5 million pesos banks and have in Cuba either a token capital and the Government would continue to furnish or no separate capital whatever. Required all the capital funds subjected to greatest risk, bank subscriptions to stock of the Central Bank namely, the capital surplus. In case the Govcannot appropriately be determined on the basis ernment did not wish to sell its shares, or if all of such capitalizations. It would not appear to the Government's shares had been redistributed be to Cuba's interest to require that separate among the banks, the Central Bank would sell capital be provided for the Cuban branches of additional, hitherto unissued, shares as required. well-established, sound foreign banks. This An initial authorization of 10 million pesos of is discussed further in a later section. There is stock should provide adequately for growth for obviously no need to require each bank to alter a number of years. its present capitalization merely to provide a Purchases of additional shares as well as re- 778 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE AMERICAN TECHNICAL MISSION TO CUBA demption of shares held by commercial banks of 5 million pesos. The Mission is therefore should be at par. It might be provided that recommending a capital surplus of 3 million transfer of shares should take place just after pesos. dividend dates, in order to avoid adjustments in In view of the role which the Government price for unpaid dividends. should play in the management of the Bank and Provision should be made for the Bank to in the distribution of the Bank's earnings, it is redeem upon reasonable notice any of its shares felt that the Government, rather than the comheld by banks which desired to liquidate their mercial banks, should contribute the capital Cuban business. surplus. Further, the Mission recommends that Care should be taken to protect the banks if the capital surplus is reduced to 1 million against loss of principal on their subscriptions, pesos, the Government should restore it to 3 since this would impair the assets covering their million pesos. deposit liabilities to the public. It will be The initial and any subsequent contribution to noted that no recommendation has been made capital surplus should be made by the Governfor double liability of shareholders in the ment's issuing special Treasury securities to the Central Bank, and there is no provision for un- CentralNBank. This method of contribution is paid subscriptions which could be called for well designed to meet the special circumstances payment at times which might be embarrassing. in Cuba. It would reduce to a minimum the More important still, the Government is supply-' actual cash payment that the Government would ing a protective cushion upon which any losses have to make to the Central Bank and, at the will fall before impairing the shares of the same time, the Central Bank could have the full commercial banks. Initially this cushion will advantages of a capital surplus. It is not necesbe approximately 5 million pesos, one and two- sary that the surplus be paid in to the Central thirds times larger than the aggregate Bank in the form of cash. subscription of the banks. In fact, this initial The securities which the Government would amount of Government funds is larger than turn over to the Central Bank as capital surplus seems desirable once the Bank has been firmly could be used by the Central Bank in two ways. established. It is made as large as it is only in First, they would constitute sound assets able order to furnish the Central Bank an ample to make up any possible loss suffered on the initial amount of cash capital without burdening Bank's other assets up to the extent of 3 million the commercial banks. As the deposits of the pesos without the impairment of the Bank's latter grow, it seems appropriate, as recom- capital. Second, the Central Bank could use mended above, that they should purchase some some of these securities for open-market operaof the shares which the Government paid for tions if necessary. in cash. The Mission recommends that these securities be Treasury bills bearing no interest and having PAID-IN SURPLUS no specified maturity but payable 90 days after It seems desirable that there should be a sub- sale by the Central Bank. The Bank would be stantial surplus, in addition to paid-in capital, able to sell these obligations when necessary at at the time the Central Bank begins business. a discount which should be less than 1 per cent. This surplus would serve several uses. First, it Upon their sale they would automatically bewould contribute to the confidence of the public come Treasury bills, payable in 90 days, sold on in the Central Bank in the early period of the a discount basis as are Treasury bills in the Bank's existence. Second, it would, within United States and England. In order that the the limit of its amount, permit the absorption of securities contributed by the Government for losses without impairment to the paid-in capital the capital surplus of the Bank may be adequate AUGUST 1942. 779 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE AMERICAN TECHNICAL MISSION TO CUBA to produce 3 million pesos when and if sold on are properly privileges or responsibilities of the the market as indicated, it is recommended that State, and also for the Government's subscripthe Government turn over to the Bank initially tion to capital and capital surplus. Residual for this purpose securities with a face value of earnings should be paid to the Government, 3,030,000 pesos. With this amount of such however, only after building up some earned securities on hand, a possible discount of 1 per surplus out of which to meet expenses, losses, cent will be provided for, and the Bank may and dividends during adverse periods. Statethen show a capital surplus on its balance sheet ment in the law of a formula for the disposition of 3 million pesos. of surplus is therefore suggested, somewhat as Formal acknowledgment on the Bank's bal- follows: ance sheet of the Government's contribution of At the discretion of the directors the Bank the capital surplus seems desirable. may build up earned surplus and reserves against anticipated losses without paying dividends, but SAVINGS BANKS dividends shall be cumulative and no earnings The existence of well-managed savings banks shall be paid to the Government so long as there might be of considerable benefit to Cuba. are any dividend arrears. After payment of full Should such banks develop or should savings dividends, the Bank's earnings shall be divided banks be specially provided for in legislation, as follows: consideration should be given to making mem- 50 per cent to the Government and 50 per bership in the Central Bank available to them. cent to surplus till an earned surplus of 3.5 Their growth and soundness would be enhanced million pesos has been accumulated; 75 per if they were permitted, when occasion de- cent to the Government and 2.5 per cent to manded, to obtain liquidity of sound assets at surplus till an earned surplus of 7.0 million the Central Bank rather than by forced li- pesos has been accumulated; thereafter 100 quidation. per cent to the Government. In the event of liquidation of the Central DIVIDENDS AND FURTHER DISPOSITION Bank, any surplus after retiring stock held by OF EARNINGS banks at par plus dividends accrued and earned It seems wise that the first claim upon the shall revert to the Government. earnings of the Bank after providing for minimum reserves should be a moderate dividend for PROFITS NOT A MEASURE OF BANK'S VALUE the shareholding banks. The rate might be The Central Bank should not be operated limited to 3 or 4 per cent, cumulative. Al- primarily to obtain profits nor will its record of though this rate is lower than the maximum profits be an adequate measure either of the rate on Federal Reserve Bank stock in the Bank's usefulness to Cuba or of its soundness as United States, the latter rate was selected in a financial institution. In its capacity as a 1913, when interest rates in the United States bank of issue, as a regulator of credit, as a central generally were much higher than today. More- reserve for banking funds and as a public deover, the United States Government did not pository, the benefits rendered by the Central subscribe to Federal Reserve Bank stock. Bank will be manifested in many direct and in-, After dividends to member banks, the Central direct ways quite apart from its annual dis- Bank should pay residual earnings to the tribution of dividends and profits. For this Treasury of the Republic. Such payments reason there is in the mind of the Mission a clear would be an appropriate method of compensat- argument in favor of confining the Government's ing the Government for giving the Bank the participation in the Bank's earnings to that of monopoly of issuing currency notes and of a receiver of those profits which remain after holding banks' legal reserves, both of which dividends have been paid to member banks and 780 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE AMERICAN TECHNICAL MISSION TO CUBA after adequate provision has been made for Two Class B directors, to be selected by the surplus and special reserves. President, in the light of their business or agricultural experience. II. MANAGEMENT All directors should be chosen, not simply as The Mission has studied with particular care representatives of special groups with which the problem of the composition and method of they may have been associated, but because of selection of the management. On the one hand, their competence and devotion to the general it is the conviction of the Mission that the welfare, and in the light of their training and responsibility for the country's monetary and experience. The several directors should be banking system and policies must rest primarily selected with a view to obtaining a board with the Government and that therefore at with broad experience in Cuba's various ecoleast a majority of the management should be nomic pursuits. selected by or approved by the Government. The Class A and Class1 B directors might be On the other hand, it is equally clear that there given staggered terms of two years each. must be a satisfactory balance of representation, Directors should be eligible for reappointment. that members should have a sufficient tenure of The Governor of the Bank should have a term office to provide for some continuity of ex- of three to five years and should be eligible for perience, and that precautions should be taken reappointment. to obtain competent and independent manage- It is recommended that the directors be paid ment. Above all, it is of the utmost importance only a modest compensation, per meeting, plus to establish a method likely to lead to the direct expenses. The salary of the Governor of selection of the best available persons for man- the Bank should be stipulated by law. The agement of the Bank. Governor, the Finance Minister, and the head of the Agricultural Bank should receive no extra THE BOARD OF DIRECTORS compensation for acting as members of the board Accordingly, the Mission recommends that except for any direct expenses incurred. control of the Central Bank should be placed in The duties of the board of directors should be a board of directors composed and selected as stated in the broadest possible terms since the follows: board is ultimately responsible for the manage- The Governor of the Bank, to be selected by ment of the Bank. The board should be given the President of the Republic. responsibility for all major policy decisions. The Minister of Finance, ex officio, or, at his It should also be given powers to delegate discretion, an alternate designated by the authority to committees or officers of the Bank. Minister to serve for so long a time as the Minister may wish. PLANS FOR A SUPERIOR BANKING COUNCIL The head of the Agricultural Bank, ex officio, In the several studies of Cuban banking needs if such a Bank is created and is designed to have which have been made by the Cuban Governan officer appropriate to serve as director of the ment, there has been provision for a Superior Central Bank. Until he shall be appointed, the Banking Council. It was proposed in these place may be filled by a third Class B director (see studies to provide this Council with power over below). the Central Bank in all major policy matters and Two Class A directors, to be selected by the even in many matters of detail concerning Cen- President of the Republic for their competence tral Bank operations. and experience in the field of banking, one from The Mission has given careful consideration a panel nominated by the Cuban banks and one to the desirability of providing for a Council of from a panel nominated by the foreign banks this sort and is in sympathy with the objectives in Cuba. which it is hoped to reach through the function AUGUST 1942. 781 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE AMERICAN TECHNICAL MISSION TO CUBA of a Superior Banking Council. However, to indicated in a later section in regard to defiestablish a Council with powers superior in all ciencies in the Central Bank's required reserves. important respects to those of the Central Bank At any time the Council should have the right and staffed with full-time officers and employees, to request that the Bank make an explanation in seems both undesirable and unnecessary, in con- writing of any current policy. In addition, the junction with a Central Bank such as is recom- Bank should be required to make an annual remended in this report. It is undesirable first port to the President, with a copy to the Counbecause it would place the Bank's • board of cil, explaining all major policies carried out directors in such a position of inferiority as to during the year and giving the reasons therefor. make it doubtful that well-qualified persons would accept membership on the board, and MEETINGS OF STOCKHOLDERS second because there would be uneconomical In view of the recommendations made above duplication of function and personnel between for selecting the management of the Bank, the the Council and the Bank. The principal ob- functions remaining for action by the stockjectives sought through the Council are believed holders of the Bank as such are relatively few. to be attained in the Mission's recommendations Meetings of the Central Bank's shareholders by other means. may be provided for to receive the annual report of earnings, discuss matters relating to the Bank, THE ADVISORY COUNCIL ON MONETARY POLICY and attend to other technical requirements of Nevertheless, functions of considerable use- the Bank's corporate existence. Furthermore, fulness could be performed by a small advisory the panels for the selection of Class A directors council of Government officials and others, act- might be selected by the member banks on the ing mainly through occasional meeting and with occasion of the annual meeting of shareholders. indirect rather than direct powers over the III. LOANS AND INVESTMENTS Central Bank. The Mission therefore recommends the establishment of an Advisory Council The making of loans and investments is probon Monetary Policy, made up of the Ministers ably the most important single function of a of Finance, Agriculture, Commerce, and Labor, central bank. It includes refusing unsafe, imand three others appointed by the President. proper, or excessive loans and investments as Of the President's appointees, one might be well as making positive commitments with selected from the faculty of the University of courage and discrimination; influence upon bor- Havana, and one might be a man, either in Cuba rowers to improve the character of obligations or from abroad, who is experienced in central which may be acquired by the bank; skillful banking problems. timing of operations; and enlightened manage- The duties of the Council should primarily be ment of the total volume of its credit outto consult and advise with both the Government standing. The Cuban Central Bank will survive and the Bank on major matters of credit policy or fall, will benefit Cuba or leave it worse off which particularly affect the public welfare. than if the Bank had never been created, de- Ultimate responsibility for policies of the pending on the quality of the Bank's policies in Central Bank should be left with the Bank's this vital field. board of directors, but the Council would have The Central Bank will normally confine its the prerogative of making its views on policy loans to (or make its investments in the obligaknown to the board whenever the Council de- tions of) banks, the Central Government itself, sired, of requesting explanations from the Bank the Stabilization Fund, and any governmental on its actions, and of calling attention to neg- credit institutions which may be created. lected problems, and would have certain duties Recommendations concerning these uses of 7 8z FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE AMERICAN TECHNICAL MISSION TO CUBA central bank credit will be discussed in that eligible for rediscount or purchase) upon the order. affirmative vote of five directors. The Bank should be authorized to issue regu- ACCOMMODATION TO BANKS lations concerning obligations it will accept for Regarding accommodation to banks, it has rediscount or as collateral for advances. been customary in central bank laws to define in considerable detail the credit instruments SOLVENCY OF OBLIGORS eligible for rediscount. Nevertheless, in the For example, before it acquires any obligations opinion of qualified observers the results of such dependent for their value in whole or in part detailed statutory definition in the United upon the endorsement of a shareholding bank, States have not been altogether satisfactory and the Central Bank might desire to have on file a have resulted in significant inflexibility of redis- recent proven statement of the adequacy and counting operations, with few compensating soundness of the bank's assets. The proof advantages. The Mission therefore recom- might consist of an audit by public accountants mends that a broad and simple formula be acceptable to the Central Bank or certification written into the Cuban law to govern the Bank's by qualified bank examiners, including, if selection of the credit instruments which it may necessary, examiners employed by the Central consider for rediscount. Bank. Concerning the Cuban branches of Until the banks in Cuba shall have obtained foreign banks authoritative statements as to some experience with central bank operations, the condition of either the Cuban branches alone it seems advisable to confine normal rediscount- or the bank as a whole may be acceptable, proing to the better recognized types of self- vided the full credit of the entire institution liquidating, short-term credit instruments. To stands as security for all liabilities of Cuban this end it should be provided that the Central branches. Further, before being accepted for Bank may at 'its discretion rediscount self- rediscount, all obligations bearing the names of liquidating obligations of a quality recognized business firms or individuals (in addition to the as sound by the best banking standards bearing endorsement of a bank) should be supported by the name of at least one person or firm of proven authenticated financial statements of the prinresponsibility and endorsed by a stockholding cipal parties to such paper. bank, with a maturity of not more than 12.0 The Bank should regulate its rediscounts not days from the date of discount, or 180 days in only by the rediscount rates charged the borthe case of obligations issued for agricultural rowing banks, but also by scrutiny of individual purposes. documents presented for rediscount and by The Bank should also have the power to make direct refusals to rediscount when this seems advances to stockholding banks secured by desirable or necessary. The right and the duty assets eligible for rediscount or purchase by the of the Bank to discriminate between desirable Central Bank, provided the advances have a and undesirable loans should be clearly stated maturity of not more than 90 days. in the law. However, in order to give the Bank scope and RESPONSIBILITY FOR GENERAL CREDIT CONDITIONS flexibility to meet special unforeseeable conditions, the Mission recommends that, in addition During periods of threatened undesirable to the rediscount powers enumerated above, the credit contraction the Central Bank should not Central Bank be authorized to make advances necessarily confine itself to rediscounting selfto stockholding banks with a maturity of not liquidating obligations of prime quality. The more than 90 days on the security of any assets Bank should feel responsibility for the credit satisfactory to the Central Bank (whether or not structure as a whole, for the general level of AUGUST 1941 783 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE AMERICAN TECHNICAL MISSION TO CUBA business activity and employment, and for the firmative vote of six members of the board of market for obligations of the Cuban Govern- directors. ment and Government agencies. If measures It should be clearly understood, however, that with respect to normally rediscountable paper any loans to the Government are at the discreare inadequate, more aggressive steps should be tion of the Bank, and that the Bank may reject adopted at the most effective time, with due the Government's requests for advances either recognition of the Bank's limitations. for reasons of general credit policy or for other considerations of the public welfare. At the LOANS TO THE GOVERNMENT same time, the Bank should always be mindful The Central Bank should be empowered to of its special responsibilities concerning the give reasonable assistance to the Central Gov- credit of the Government. ernment. Although there is an inclination in When, as the result of such advances made some quarters to regard any central bank accom- over the course of two years or more, the total modation to governments as dangerous, it seems of such direct loans outstanding on the books abundantly clear that a moderate amount of of the Bank has reached an amount equal to 10 such accommodation is not only desirable under per cent of the annual average budgeted excertain conditions but much less dangerous than penditures during the current and next preceding a strict prohibition against it. The Cuban fiscal years, no further advances ^should be Government should not, of course, rely upon made to the Government except on the affirma- Central Bank credit as a substitute for taxation tive vote of six directors. or borrowing from the public. Caution and Furthermore, the law should specify that in wisdom should be applied in determining the no case may an excess over the 10 per cent reappropriate amount of Central Bank credit. ferred to above continue to be outstanding for Under ordinary circumstances and especially more than two years in any four-year period. during unusually prosperous years, it is ques- The Central Bank should help finance the tionable whether the Bank should make any Stabilization Fund's accumulations of gold or advances to the Government, unless short-term foreign exchange. This is discussed in detail financing to meet seasonal fluctuations in the in Section VII. Government's revenues cannot be obtained at reasonable rates from other sources. However, ASSISTANCE TO OFFICIAL CREDIT AGENCIES greater Central Bank assistance during periods Another important use of central bank credit of trade depression may be essential to the is loans to (or investments in the securities of) financial and economic welfare of the country. official lending agencies. The American Mis- The funds should, of course, be scrupulously sion is strongly of the opinion that the Cuban guarded from uses involving political favoritism economy is in need of an official or semi-official or waste. agency to extend credit for agricultural purposes The Mission recommends that the Bank be and that consideration should be given to the authorized to make loans to the Government advisability of establishing agencies for induswith a maturity of one year or less, on the trial, public works and mortgage purposes. affirmative vote of five members of the board of The Mission hopes shortly to submit a report on directors, provided that the net total of the an agricultural lending institution. The Cenloans made during any one year (excluding re- tral Bank in turn should be authorized to give funding) does not exceed five per cent of the reasonable assistance to such agencies and should Government's budgeted expenditures during the be directed to foster their sound development so then-current fiscal year. An amount in excess far as is consistent with its general credit of five per cent can be advanced only on the af- policy. 784 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE AMERICAN TECHNICAL MISSION TO CUBA It is a distinct possibility, as well as a desir- Only, therefore, in special emergencies of able one, that a good share of future credit credit contraction when normal banking faciliexpansion in Cuba will occur through such lend- ties are seriously disrupted and when banks ing institutions. against their wish are forced to call in old loans More specifically, the Bank should be author- and to refuse new ones, should the Central Bank ized at its discretion to acquire obligations of be authorized to lend directly to the public. these agencies subject to some general protective Such emergencies should be recognized to exist limitations. The limitations might take the only upon proclamation by the President of the form of a provision that the obligations must be Republic (possibly with the consent of the short-term and possibly bear the guarantee of the Senate), and all loans to the public by the Government and that not more than some Central Bank might properly require an affirmamoderate proportion, perhaps 15 per cent, of the tive vote of five directors. Central Bank's assets may consist of the obligations of any one of these agencies. It is not OPEN-MARKET OPERATIONS possible at this time to foresee with accuracy Quite apart from its direct loans and advances, the maximum extent to which the Central Bank the Bank should be given the powers necessary may advisably finance the agricultural and other to implement its open-market policy. The Government credit agencies. The Mission Bank should have the authority to buy and sell therefore recommends that at the end of two securities in the open market at times when it years the Bank, with the approval of the Presi- wishes either to increase or to decrease the funds dent of the Republic, may increase the above available to the banking system. In this conproportion to not more than xo per cent. Any nection the Bank should be authorized to purfurther increase in the percentage should be chase direct obligations of the Republic of Cuba legislatively determined. Obligations of such which have been outstanding in the open market agencies rediscounted with the endorsement of for one year or more, short-term debentures or a shareholding bank are to be regarded as coming notes of Government credit agencies, and inoutside of the percentage limitation just menterest-bearing obligations of the Stabilization tioned. Fund (for which see Section VII below), whenever such purchases are required to carry out EMERGENCY LOANS TO PUBLIC the Bank's open-market policy. Obligations With the possible exception of extreme of the Government issued within the preceding emergencies the Central Bank should not make year may also be purchased in the open market, loans directly to the public. Private lending but all such purchases, as well as purchases of agencies can not be expected to stay in business obligations of official credit agencies, should in direct competition with a central bank which come within the respective percentage limitais given monopolies of note issue and holding tions recommended above. It should be reother banks' reserves. The Bank has the quired that all securities for the open-market further advantages of partial exemption from portfolio should be purchased in the open taxes and services of management paid in part market at prevailing prices. If the available from other sources. Furthermore, there are supply of the obligations named above is too important advantages to a central bank in havsmall to permit effective open-market policy, ing business loans and most bank investments the purchase should be permitted of other seamade by independent, privately-managed banks. soned, first-grade bonds which have been The pressure upon a semi-governmental bank to outstanding for two years or more. make particular loans or investments which may be undesirable can readily become intolerable. The Bank should, of course, be empowered at 785 AUGUST 1941 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE AMERICAN TECHNICAL MISSION TO CUBA its discretion to sell any assets which it is to the best interests of Cuba. The volume of authorized to acquire. reserves must not be permitted to stimulate the When a market for Government securities banks to expand their loans and investments to has developed to the point where the Central excess. Consequently the Central Bank must Bank would be justified in undertaking limited regulate the total of its own loans and investstabilizing operations in the market for new ments so as not to cause a damaging overissues of Cuban Government securities for brief expansion of member bank credit. periods, consideration can be given to adding to One aspect of this responsibility is that the the powers of the Central Bank in this respect. Central Bank must not extend an excessive The Mission recognizes that if and when an amount of credit to official lending agencies. agricultural bank is established, its long-term, Such agencies must be prepared to obtain much mortgage-secured bonds will in due time be and at times all of their loanable funds from offered in the investment market. Considera- sources other than the Central Bank. tion of the relationship of the Central Bank to those securities may well be postponed until NEED FOR CONFIDENCE IN MORTGAGES AND plans for the agricultural bank are more fully SECURITIES determined. One of the conditions in Cuba repeatedly de- The statute might include a provision proscribed to the Mission during its investigations hibiting purchase of or lending upon assets iswas the impaired public confidence in mortsued to finance speculation in stocks, real estate, gages and other secured obligations. Much of or commodities. this lack of confidence was attributed to the NECESSARY LIMITATIONS ON CENTRAL BANK mortgage moratorium laws of recent years. CREDIT The effectiveness of a central bank will be considerably reduced in Cuba unless it is possible It may be desirable at this point to call to develop willingness on the part of investors attention to the fact that a central bank can not to purchase well-secured obligations of official be regarded as a source of unlimited financing for credit agencies and of the Government. In all desirable purposes. Loans and investments order to help develop such confidence, it is made by the central bank increase (in the abessential that the public have faith in the fair sence of offsetting changes) either the currency and impartial treatment of creditors by the held by the public or the legal reserves of the Government. Any opportunities utilized to banks. For all increases in the reserves of banks demonstrate the Cuban Government's resolve arising from an expansion of central bank credit to treat creditors with complete fairness should there are likely to be corresponding increases in be of distinct benefit to the long-run developthe bank deposits held by the public. Increases ment of Cuba's economic welfare. The Mission in their reserves give the banks the means urges that careful and prompt consideration be with which to expand their own loans and given to a review of the entire mortgage morainvestments. For all commercial banks taken torium situation in Cuba in order that the collectively, additional reserves permit an ag- Central Bank and any agricultural bank which gregate expansion of their loans and investments several times the amount of the increase in may be established may carry out their operareserves. tions under reasonably favorable conditions. CONTROL OF MEMBER BANK RESERVES IV. NOTE ISSUE AND THE RESERVE REQUIREMENTS OF THE CENTRAL BANK One of the basic duties of a central bank is to maintain the volume of the member banks' re- The Mission recommends that the Central serves at a level consistent with and conducive Bank be given the exclusive power to issue 786 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE AMERICAN TECHNICAL MISSION TO CUBA paper currency in Cuba and that the Bank's notes Therefore, if at some time it should appear opbe given legal tender status. portune to the Barfk to dispose of its silver coin The Bank should take over the liability for at bullion value, it would be necessary for the outstanding issues of silver certificates and the Bank to obtain some asset equal to the difference gold and silver coin held as cover against them. between the coin's monetary and bullion values. The Mission recommends that in this event the NOTES AGAINST WHICH BANK MUST HOLD Government turn over to the Bank special Gov- RESERVES ernment certificates with a face value equal to The Mission suggests, further, that these issues this difference, bearing no interest and having should be regarded as a volume of currency to no maturity. which Cuba has already become adjusted. Accordingly the Bank should be required to main- RESERVE REQUIREMENT AGAINST THE BANK'S tain legal reserves only against its notes which NOTES constitute a net increase in Cuba's total issues The reserve requirement against the Banks' of currency outstanding at the time the Central notes which the Mission recommends is the Bank begins operations. These issues should moderate ratio of 15 per cent. This ratio, as include silver certificates and one-peso coins stated above, would apply to all note issues of held by the banks and the public but not coins the Bank in excess of the amount of Cuban held as cover for silver certificates. currency (including one-peso coins) outstanding The replacement of silver certificates by Cen- when the Bank begins business. tral Bank notes would thus not affect the reserve The Mission recommends that the only legal requirements of the Central Bank in any way. reserves of the Central Bank be obligations of For example, if silver certificates outstanding the Stabilization Fund secured 100 per cent by are ioo million pesos when the Bank starts gold or foreign exchange. These obligations business (assuming approximately xo million are described in full in Section VII. to have been issued under pending legislation), Whenever the legal reserves of the Bank fall only the Bank's notes which, when added to below the required level, the Bank's policies the amount of silver certificates and one-peso should become subject to constant review by coins still outstanding, are in excess of ioo the Advisory Council. Unless authorized to million, would be subject to reserve require- the contrary by the Council, the Bank should ments. The Bank's notes that replace the silver immediately undertake measures to restore the certificates and represent no net increase in peso required reserve ratio. If the Council is not currency or coin outstanding would require no satisfied with the measures adopted by the Bank reserve. it should have the authority to require the Bank to alter its program. This authority DISPOSITION OF SILVER COIN RESERVE AGAINST should continue in force until the legal reserves CERTIFICATES are once again at or above the minimum re- The silver pesos received by the Bank need quirements . be retained only so long as silver certificates The question of whether the 2.5 per cent reserve covered by the coined pesos remain outstand- requirement, with a similar flexibility as regards ing. As the certificates are replaced by bank reserve deficiencies, should apply to Central notes, either because they are worn out or be- Bank deposits has produced two viewpoints cause the Bank wishes to retire them, the silver within the Mission. The entire Mission is coin need no longer be held as cover for silver agreed that dollar deposits of the Bank should certificates. Some asset, however, equal to the be regarded as outside the peso system and monetary value of the silver coins will be needed should be fully covered by dollar assets in acto keep the Bank's assets equal to its liabilities. cordance with the best practice of the commer- AUGUST 1942. 787 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE AMERICAN TECHNICAL MISSION TO CUBA cial banks. This is discussed further in jority do not wish to require large reserves to Section VI. be held when the Bank's liabilities shall have grown substantially. In order to avoid this, MAJORITY'S REASONS FOR NOMINAL CENTRAL the majority recommends that every practicable BANK RESERVE REQUIREMENTS measure be taken to prevent the banking struc- Against the Bank's peso deposits, however, ture of the country from being linked so closely the majority of the Mission recommends that to gold or foreign exchange as to subject that no reserves be required. The principal reasons structure to shocks of a deflationary sort at a for this view are the belief that the Bank's time of balance of payments maladjustment. statutory reserve requirements should be as low Furthermore, it is desired to avoid popular alarm as public opinion will allow and that as little due to the common misconception of the sigprestige as possible should be given to the de- nificance of central bank reserve requirements. sirability of maintaining any fixed percentage of It probably must be recognized that lay opinreserves. The Mission regards as fallacious the ion will not be fully content with a central view sometimes held that high Central Bank banking system in which neither notes nor reserve requirements of gold or foreign ex- deposits have some sort of gold or foreign exchange are a useful means of assuring the foreign change reserve. For this reason the majority exchange stability of a currency. At times recommends a statutory reserve requirement of large official holdings of gold or foreign ex- gold and foreign exchange against the notes change may be desirable, but at all times they issued by the Central Bank. As to the peso should be fully available for export. Immo- deposits of the Central Bank, however, the bilized reserves are of no direct utility in main- majority believes that there need be no required taining the value of a currency. Only reserves reserves of international money. which may be exported, that is which may be used to finance payments abroad, are of value MINORITY RECOMMENDATION OF RESERVE for this purpose. Reserves required to be held REQUIREMENTS AGAINST DEPOSITS against the Central Bank's liabilities can be Some members of the Mission, however, befully mobilized only by elimination of those lieve that the Bank should be required to hold liabilities, unless there is some such flexible reserves against both peso notes and deposits. arrangement as is envisaged in both the ma- They consider that deposits, fully as much as jority and minority viewpoints in this section. notes, represent central bank credit, the volume Such drastic credit contraction may be so damag- of which should be limited in some measure with ing to the national welfare that it becomes a relation to the gold and foreign exchange repractical impossibility. As already stated, the sources of the country. They are further of the Mission believes that Central Bank credit poli- opinion that Cuba's gold and foreign exchange cies should be guided by more discriminating resources will be ample to provide the necescriteria than rigid reserve formulas. sary reserves against deposits without any re- The Mission is well aware that it has been striction of the legitimate credit activities of customary for central banks to maintain re- the Central Bank. On the basis of the January serves not only against their notes but also figures (shown in the appendix at the end of against their deposits. In the preceding para- this report) 2.5 per cent reserves against peso graph is set forth the conviction that Cuba deposits of the Central Bank would amount to should, so far as possible, maintain its stock of 4 million pesos. A doubling of the peso degold and foreign exchange for stabilization posits in the hands of the Cuban public would purposes. Even though the Bank's aggregate raise these required reserves of the Central Bank reserve requirements would be low on the basis to only 8 million pesos. Owing to the large of immediately prospective liabilities, the ma- fiduciary issue of notes for which provision is 788 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE AMERICAN TECHNICAL MISSION TO CUBA made in this report, required reserves of the Fund's holdings of gold or foreign exchange its Central Bank against notes are likely to be principal guidance either to expand or to connegligible when the Bank begins business. tract credit. Developments of recent years cast Virtually the only reserves required would be serious doubt on the wisdom of determining those against deposits. Since the Cuban Sta- domestic credit policy solely on the basis of a bilization Fund already had 8 million dollars at country's holdings of international reserves. the end of March, and there were possibly Able and far-sighted central bank management 30 million dollars of United States currency in should, under some conditions, encourage the the hands of the Cuban public most of which expansion of bank loans even when there is only should, under the new system, be replaced with a small reserve of gold or foreign exchange and, pesos and acquired by the Government; and since under other conditions, a discriminating or the prospects are that the Cuban balance of inter- restrictive credit policy may be desirable evennational payments during the war will lead to though a country holds a large amount of gold far greater acquisitions of dollars, these mem- or foreign exchange. It seems clearly possible bers of the Mission believe that Cuba is well able that both of the hypothetical conditions just to adopt what appears to them to be a more stated may sometime occur in Cuba. These rational system of reserve requirements. In this problems are discussed further in Section VII. connection they are impressed by the fact that V. RESERVE REQUIREMENTS OF COMMERCIAL the reserve requirements are not absolute, but BANKS allow for a smooth adjustment in the unlikely The Mission believes that the requirement of event that reserves fall below the legal minithe Cuban Commercial Code that banks hold mum. reserves of 2.5 per cent of their deposits should be The type of reserve requirement recommended continued subject to possible modification by (whether against notes only or against both the Central Bank under special, limited circumnotes and deposits) gives some warning when stances. " The law should require that at least the volume of Central Bank credit is out of line four-fifths of the 2.5 per cent be held in deposits with the resources of the Fund, and it provides at the Central Bank. The law should also refor corrective action; but it does not rigidly quire the same reserve against savings deposits force the Bank into action which may be inapsubject to reduction at the discretion of the Cenpropriate to the economic situation at the time. tral Bank to a minimum of 5 per cent. Coinci- If the Bank's reserves are deficient, for instance, dent with this power to reduce these requirebecause a bad sugar crop and an adverse balments, the Bank should have the power to define ance of trade are draining the Fund's resources, such deposits and issue regulations concerning the Bank may well decide that the internal them. The currency in which these reserves situation in Cuba requires support rather than must be held is discussed in the next section. further pressure toward contraction. In such a In case of threatened over-extension of bank case, the Bank might extend credit freely as the loans or investments, the Bank should have the best means of meeting the situation, pending the power to require that commercial banks hold adoption of other measures to balance Cuba's peso reserves higher than those regularly reinternational position. In pursuing this policy quired. the Bank would, however, have to have the In the interest of Cuban welfare as well as in approval of the Advisory Council. justice to the banks, limitations should be written into the law designed to protect the banks SIGNIFICANCE OF INTERNATIONAL RESERVES FOR against injury from application of this power. CREDIT POLICY The higher reserve requirement ratio should The entire Mission agrees that the Bank apply only to demand deposits in excess of should not expect to receive from the level of the those held by each bank at the time the increase AUGUST 194Z 789 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE AMERICAN TECHNICAL MISSION TO CUBA is ordered. Furthermore, it should be required time. Obligations denominated in dollars that the Central Bank make what provisions are should be payable in dollars with full legal necessary to allow banks to take care of any firm sanction. The Stabilization Fund and the Cencommitments to lend entered into before the tral Bank should then devote themselves to the increase is announced. It should also be clearly task of winning full public confidence that understood that banks will be permitted to levy pesos are more desirable than aollars for people charges on bank depositors sufficient to cover the in Cuba to hold and use. costs of maintaining checking services, including At some future time, consideration should be among the costs a fair profit on the banks' capi- given to imposing additional, mild deterrents to tal in Cuba. These costs are ordinarily covered the internal use of dollars, possibly including by the income from the banks' earning assets, taxation at a very low rate on all transfers from but if they are not permitted to increase their pesos into dollars, extra charges or taxes upon earning assets as their deposits increase, the the keeping of dollar bank balances, and other banks should be compensated through service measures. charges. The Central Bank should also be Ending the legal tender power of dollars will authorized to make adjustments for new banks probably render obsolete the provisions of the in order to permit them some degree of expansion law of July 8, 1939, whereby banks are required, of credit. to meet dollar liabilities in dollars but certain The Bank should have the power to cancel classes of bank borrowers (as well as other any increase in reserve requirements above 15 debtors) may repay dollar loans with a like per cent. In periods of emergency the Bank number of pesos, regardless of the current exshould also have the power to reduce reserve change rate. Even though this provision of requirements below X5 per cent. the law should have become ineffective, the Mission believes that it would be advisable VI. THE STATUS OF THE DOLLAR IN CUBA that this provision of the law be specifically Special problems are raised by the existence repealed. Obligations should be payable only in Cuba of a large volume of bank deposits, in the currency in which they are denominated. bank loans, securities, and currency, all de- With the peso at parity with the dollar, repeal of nominated in United States dollars, side by side this law will cause no burden upon anyone. with similar instruments denominated in pesos. The provision of this law which apparently An exact statement of the degree to which this results in penalizing any person quoting a foreign dual monetary system is disadvantageous to exchange rate for the peso lower than the previ- Cuba will not be undertaken in this report. ous quotation should also be repealed. It is Nevertheless, the disadvantages seem clearly to now generally recognized that it is based upon a preponderate. misconception of how an untrammeled foreign The Mission believes that Cuba should pro- exchange market should work and prohibits gress from a dual peso-dollar system to an all- banks, which are foreign exchange brokers, peso system by gradual, voluntary stages. from responding to the forces of supply and Legislation to enforce an abrupt, compulsory demand in both directions. The repeal of this conversion seems likely to do more harm than law would be more a matter of principle than of good. The transition should be brought about important effect, since the Stabilization Fund by increasing the prestige of the peso through should succeed in eliminating all but trifling careful and wise monetary policies. fluctuations in the rate of exchange. The Mission recommends that the legal tender power of United States dollars be terminated at DOLLAR POSITION OF BANKS once. But it doubts that other impediments So long as dollar bank balances exist in Cuba, against their use or measures forcing dollars banks should be required by law to keep their out of Cuba would be in Cuba's interest at this dollar assets and their peso assets in substantial 790 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE AMERICAN TECHNICAL MISSION TO CUBA balance with their respective dollar and peso lia- The Fund was obliged to sell most of its remainbilities. Such legislation will only make ing dollars in the foreign exchange market in compulsory what is understood already to be order to obtain pesos with which to reimburse the firm practice of the banks now in Cuba. the exporters delivering dollars. The Fund The Mission recommends further that banks could retain only whatever premium there was be permitted to hold their legal reserves against on the dollar. When the dollar was at par or dollar deposits in dollars for a period of five at a small discount, as in the first quarter of years. Peso reserves would have to be held 1941, there was no profit in such operations and against peso deposits. After five years, banks there may have been a loss. should be required to hold all their legal reserves in pesos. This provision will give ample warn- BALANCE OF INTER-CURRENCY PAYMENTS ing of the change and should end uncertainty Lack of adequate peso financing has not been concerning the proportion of dollars and pesos the only factor preventing the Fund from buildrequired to be held as commercial bank reserves. ing up a stock of gold or foreign exchange in the It will also give the commercial banks ample period prior to the last quarter of 1941. While opportunity to induce their customers to hold the peso was at a discount, any attempt by the deposits in pesos rather than in dollars. Fund to accumulate foreign exchange would Against all its deposit liabilities denominated have tended to depress it further. in dollars (including the member banks' reserve In recent months, however, the peso has gone deposits referred to just above), the Central to a premium. Were the dollar not used directly Bank should be required to keep a ioo per cent as money in Cuba, the Fund would currently cover of high-grade, liquid dollar assets. be engaged in acquiring dollars in exchange fo*r pesos on a substantial scale. The. Mission is VII. THE STABILIZATION FUND AND ITS RELATION TO THE CENTRAL BANK recommending a peso system for Cuba with Fund operations on whatever scale is needed to The Mission recommends that the Cuban maintain parity between the peso and the dollar. Stabilization Fund be empowered to acquire gold and foreign exchange and to use those LOCATION OF THE FUND holdings to stabilize the foreign exchange value A good case exists either for placing a. of the peso during periods when the balance of country's foreign exchange stabilization operapayments is adverse; In order to build up such tions in the central bank or for establishing an holdings, the Fund should have at its disposal independent fund. The difference between the adequate peso financing, so that it can retain two methods is perhaps more apparent than gold or foreign exchange until needed. real. FUND'S PREVIOUS LACK OF PESO FINANCING If the central bank buys the gold or foreign The Fund as now constituted has usually had exchange, each peso's worth that is acquired to sell its acquisitions of dollars within a very will ordinarily be financed by an increase of one short time. The Fund's principal source of peso in the central bank's outstanding bankforeign exchange has been the dollars which note or deposit liabilities. If the stabilization sugar and molasses exporters were required to fund is independent or is a part of the Treasury, deliver to the Fund at par. They were entitled the acquisition of monetary gold or foreign exto receive prompt payment of a like number of change may be financed by issuing against the pesos. While the Fund had access to general gold and foreign exchange acquired some obliga- Treasury funds, the Treasury has usually needed tion such as gold or foreign exchange certificates. all its funds within brief intervals to meet These could be designed to serve either as circubudgetary expenditures. Some of the Fund's lating currency or as the means of obtaining a dollars were purchased by the Treasury at par deposit in the central bank. to meet the Government's expenditures abroad. If, however, the monetary authorities desire to AUGUST 1941 791 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE AMERICAN TECHNICAL MISSION TO CUBA finance the increase in the stock of gold or dol- exchange—either in the open market or from lars without issuing new money, it is possible exporters delivering dollars as the law now reto do so, whether the fund is part of the bank or quires—the Fund can pay for it with a check separate from it, by means which are discussed drawn on the Central Bank, in pesos. The below. check being acceptable at any bank, the seller of The Mission feels that there is a preponderance the gold or foreign exchange will receive payof advantage at the present time in making the ment at his convenience. When the check is Cuban Stabilization Fund separate from the presented to the Central Bank in turn by a com- Central Bank, for the following reasons: (i) mercial bank, both the Central Bank's liabilities Responsibility for the foreign exchange value of (either notes or deposits due to banks) and the the peso and operations to stabilize that value Bank's assets—i.e. the overdraft of the Stashould be placed in an agency fully responsible bilization Fund—will increase by equal amounts. to the Government, (i) Profits or losses aris- Unless considerations of Central Bank credit ing from stabilization operations should be for policy dictate otherwise, the overdraft need not the account of the Government and this ac- be repaid until the Fund wishes to use the gold counting can be carried on more conveniently or foreign exchange securing it. At that time and understandably when the Fund is separate the Fund will support the peso in the foreign than when it is part of the Bank. (3) A exchange market by selling gold or foreign exseparate Fund makes it easier to handle the change in exchange for pesos. The pesos so financing of acquisitions of gold and foreign obtained will be applied on the Fund's overexchange by borrowing from the public. The draft at the Bank. significance of this measure is discussed further The Mission recommends that when this Cenon in this section. tral Bank overdraft method is used to finance The management of the existing Stabiliza- accumulation of gold and foreign exchange, the tion Fund in Cuba is wholly within the Treas- overdrafts bear no interest and have no maturity. ury. With the establishment of a Central Bank This will give the Fund the approximate equivait appears advisable to the Mission that the lent, so far as ability to obtain pesos is con- Governor of the Bank should participate in the cerned, of the United States procedure of financmanagement of the Fund just as the Minister of ing acquisitions of gold by issuing gold certifi- Finance participates in the management of the cates to the Federal Reserve Banks. Bank. The community of interests and prob- The Fund should retain title to any gold or lems is so close that this mingling of the man- foreign exchange which it acquires, but the gold agements should contribute to efficiency and or foreign exchange could be held by the Cenunified policy. The Mission therefore recom- tral Bank as trustee. mends that the Stabilization Fund be adminis- EFFECT ON COMMERCIAL BANK RESERVES tered by a committee composed of three members: the Minister of Finance, who should As already stated, use of Central Bank overbe chairman, an appointee of the Minister of drafts to pay for accumulations of gold and Finance, and the Governor of the Central Bank. foreign exchange will increase, peso for peso, the currency or bank deposits held by the public, OVERDRAFT METHOD OF FURNISHING PESOS provided that offsetting changes do not take Probably the simplest method for financing place. The public's monetary habits will autothe peso requirements of an independent Fund matically determine whether the increase occurs is to give it the right to incur a peso overdraft in currency or in deposits. To the extent that at the Central Bank up to the cost of any gold it occurs in deposits, the overdraft method will or foreign exchange added to the Fund's hold- result also in increasing the reserves of the comings. When the Fund buys gold or foreign mercial banks by a like amount. These in turn 79Z FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE AMERICAN TECHNICAL MISSION TO CUBA will be the legal basis for a multiple expansion of Two SPECIAL POWERS TO CONTROL BANK CREDIT commercial bank credit, as discussed in Sec- To deal with such a situation, the Mission tion III. Under some circumstances, increases recommends that the Bank be given two special of member bank reserves freely available for the powers: first, the power to raise the legal reserve expansion of bank loans and investments may be requirements of commercial banks, as stated in regarded as undesirable. Section V, and second, the power to compel the During the war, when Cuba's balance of inter- Fund to obtain its pesos outside the Central national payments may result in very large net Bank. Other measures which may be necessary payments to Cuba, the financing of the Fund to prevent inflation in Cuba lie outside the usual may be a major influence in the domestic credit functions of a central bank, though of course situation. The Central Bank should be given the Bank may give advice to the Government on power to regulate this financing in so far as their adoption. possible so as not to cause undesirable effects on By use of the power to raise reserve requiredomestic credit conditions. If it should be ments the Central Bank could limit the further made compulsory that the Bank finance the expansion of bank loans and investments to any Fund without interest and without limit, the degree desired, although frequent changes in Bank would probably be unable to pursue a reserve requirements would be inadvisable. The policy of moderating credit expansion in the qualifying provisions recommended in Section years immediately ahead without at least re- V would make unnecessary any forced contracsorting to strong emergency measures of control. tion of loans and investments already made. The Bank will not have ordinary loans, or Each bank could continue to maintain its previassets suitable for sale in the open market, in ous volume of loans and investments outstandnearly sufficient volume to absorb the member ing, with such further growth as the Central bank reserves created in financing the Fund. Bank and the conditions permitted. Further- Cuba's favorable trade balance during the com- more, banks could continue to receive their ing year will probably exceed ioo million dollars. previous income from loans and investments, Part of this balance may be left abroad or placed possibly augmented by some increase in interest in dollar deposits in Cuba, but in addition to rates and income from service charges sufficient the trade balance there will be several other to compensate for the cost of deposits against sources of dollars which may be offered to the which high reserves were required. Fund. More than 30 million dollars were esti- The second special control which the Mission mated to be in public circulation in Cuba at the recommends is that the Central Bank be given end of March, and this may be offered in large the power to require the Fund to cease drawing part to the Fund. To the extent that proceeds upon it, or even to reduce its overdraft to any of the Z5 million dollars credit from the Export- extent and at any time the Central Bank deems Import Bank and the 2.0 million dollars Recon- it advisable. Exercise of this power by the struction Finance Corporation advance for the Bank should require an affirmative vote of five development of Cuban nickel deposits are spent directors. The effectiveness of this power as a in Cuba rather than for imports from the United credit-control device is readily apparent: buying States, they will have to be converted into pesos. gold or foreign exchange with pesos obtained It would be unsafe not to reckon with a possible from sources other than the Central Bank tends acquisition of at least 50 million dollars—per- to prevent the growth of legal bank reserves. haps several times that figure—by the Fund in To the extent that the Fund had to finance its the next year or two. The appendix to this acquisitions outside the Central Bank it could report shows what might be the effect on the draw upon the general revenues of the Treasury, domestic credit situation of an acquisition of 50 or it could sell a new type of credit instrument to million dollars by the Stabilization Fund. the market. The Mission suggests that this AUGUST 793 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE AMERICAN TECHNICAL MISSION TO CUBA new instrument might be a short-term note of CREDIT POLICY IN RELATION TO INTERNATIONAL the Government secured by the gold and dollars RESERVES of the Fund. The Mission has been informed A threatened excess of gold or foreign exthat a note so secured would have exceptional change in Cuba should probably be regarded as credit standing in the Cuban market and under abnormal. In setting up the Central Bank atordinary circumstances would sell readily at a tention must also be paid to the opposite possivery low rate of interest. Of course, if a firm bility, that of the exchange stabilization aumoney policy were being put into effect by the thorities having difficulty in meeting an adverse Central Bank, the rate of interest on these notes balance of international payments. would reflect the general high level of interest The Mission fully recognizes the importance rates, although it should still have a consider- of protecting the exchange stabilizing operaable differential in its favor. tions of the Stabilization Fund from excessive The extent to which the gold and dollars ac- credit expansion permitted by the Central Bank. quired by the Fund should be prevented from The Fund is responsible for maintaining the having the effect of increasing the reserves of foreign exchange value of the pesos issued by the commercial banks should be left for de- the Bank. Conceivably the Bank might render termination in the light of circumstances current the Fund's task impossible if it allowed an at the time. expansion of credit without relation to the gold In all probability interest paid on these Fund and foreign exchange resources of the Fund. notes to make them acceptable to lenders will Cuba's economy is markedly dependent on exultimately have to be paid by the Government port markets for. sale of its production and on out of its general funds. The interest payments imports for supplies of many types of goods. will probably exceed any profits which the Fund Accordingly the Bank's decision to stimulate domestic purchasing power must be guided by can make by stabilization operations around par the danger of engendering a demand for imports of exchange. On the other hand, Stabilization larger than current exports can pay for, after Fund notes fully secured by gold or dollars meeting other necessary foreign payments. The should be salable at considerably lower interest Mission therefore recommends that Central cost than other obligations of the Cuban Gov- Bank credit policies be determined with constant ernment or of official credit agencies such as an reference to the resources of the Fund and to the agricultural bank. At any time when, for problem of maintaining the foreign exchange reasons of credit policy, only a limited amount stability of the peso. The presence on the of Central Bank credit can be made available to Bank's, board of directors of two of the three the Central Government, official credit agenmembers of the Fund's management should serve cies, and the Fund, combined, it may be a net in large part to integrate their respective polisaving to the Government as a whole if the cies. Fund is financed partly in the open market, leaving the available Central Bank credit for EMERGENCY EXCHANGE LICENSING the Government or the lending agencies. To provide for the possibility that Cuba may Thereby obligations bearing the lowest rates of some day be faced with a net balance of foreign interest would be sold to the open market while payments so adverse as to exhaust (or threaten obligations bearing higher rates of interest to exhaust) the official holdings of gold and would be bought by the Central Bank. Since foreign exchange, the Mission recommends that the Government is the residual beneficiary of the framework be set up within which it will Central Bank earnings, this procedure would re- be possible to subject all foreign exchange duce the Government's net cost of borrowing. transactions to license. Such a step may be a 794 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE AMERICAN TECHNICAL MISSION TO CUBA necessary preliminary to a basic adjustment of valuation or undervaluation reflects enduring the exchange rate or other measures designed to maladjustment in Cuban costs and prices in permit reopening of a free exchange market on a relation to those abroad. In this event, it secure basis. Or it might.prove desirable under would be appropriate to recommend to the the circumstances of the time to continue the Cuban Congress a change in the price of gold moderating influence exerted by a licensing sys- and hence in the par of exchange. tem upon such foreign payments as excessive Under present and prospective conditions, imports, speculation against the peso, heavy however, the Mission believes that the statutory purchases of foreign securities, flight of capital, gold value of the peso should be set at parity etc. The President should be authorized, on with the United States gold dollar and that the the advice of the Stabilization Fund Committee, Cuban Stabilization Fund should maintain the to require licensing of foreign, exchange trans- foreign exchange value of the peso within a actions by the Minister of Finance. Whether or range of minor, technical fluctuations around not this power is ever utilized is left to the parity, i.e. within a range of not more than two judgment of the Cuban monetary authorities in per cent in either direction. Central Bank power when the need may arise. It is an emer- credit policy should be determined in full congency power which should be used only when the sideration of Cuba's exchange outlook, but, Fund's capacity to stabilize exchange threatens when appropriate domestic credit policy and to be inadequate. other measures are unable to keep the balance of foreign payments in equilibrium, the Govern- DOUBTFUL USEFULNESS OF EXCHANGE ment should, in the opinion of the Mission, DEPRECIATION expect to achieve a more satisfactory adjustment Although not wishing to restrict the judg- by directly restraining certain types of interment of those authorities acting in the light of national transactions, or by a basic revaluation actual future conditions, the Mission, as sug- of the peso, than by a policy of exchange degested in the previous paragraph, holds the view preciation. that for Cuba some measure of foreign exchange rationing is preferable to efforts to restore bal- SUMMARY OF RECOMMENDATIONS OF SECTION VII ance of payments equilibrium by wide or fre- Specifically, and in recapitulation, the Mission quent fluctuations in the foreign exchange rate. makes the following recommendations con- In support of this view it may be argued, first, cerning the establishment and functioning of a that Cuban exports will not be increased sub- Cuban Stabilization Fund and concerning the stantially by depreciation of the peso; second, disposition of Cuba's gold and foreign exchange that the value of Cuban imports will not be reserves: reduced to a sufficient degree or in a desirable (i) Cuba's stocks of monetary gold and manner by a depreciating peso; and third, that foreign exchange should be segregated in a transfers of funds abroad may be so aggravated Stabilization Fund to be used for the stabilizaby depreciation or the fear of further deprecia- tion of the peso. The Fund should be charged tion that it will do considerably more harm with the responsibility of purchasing, holding, than good. These suggestions, however, apply and selling gold and foreign exchange to staonly to conditions which can now be foreseen. bilize the peso. The Fund should stabilize the The Mission fully recognizes the possibility foreign exchange value of the peso at the equivathat future events may cause the peso to become lent of the gold value of the peso, allowing only overvalued or undervalued in relation to other minor, technical fluctuations around that level. currencies. At such a time the foreign ex- (2.) Management of the Fund should rest with change authorities may conclude that this over- a committee of three, consisting of the Minister AUGUST 1942. 795 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE AMERICAN TECHNICAL MISSION TO CUBA of Finance, the Governor of the Central Bank, are sold. Otherwise, the Fund's operations and both ex officio, and one member selected by the the size of its holdings of gold and foreign ex- Minister of Finance. change could readily be detected through an (3) The Fund should be authorized to obtain inspection of the changes in the size of the pesos from the Central Bank with which to Fund's overdraft in the balance sheet of the purchase gold or foreign exchange on the basis Central Bank. The overdraft may be mainof overdraft facilities bearing no interest and tained unchanged if the Fund is permitted to having no maturity but fully secured by gold or secure its overdraft either with gold and foreign foreign exchange. In addition to incurring exchange or with pesos. As gold and foreign overdrafts at the Central Bank, the Fund should exchange are withdrawn, pesos obtained from be authorized to borrow from the public (in- their sale could be substituted. The security cluding the commercial banks) on interest- for the overdraft would still be complete. To bearing notes secured by gold and foreign preserve its control over bank reserves, the exchange. The Fund should be authorized to Bank should be given authority over the form pledge its holdings of gold and foreign exchange in which the Fund may keep its peso holdings, to secure these notes. The Central Bank should as between currency, deposits in the Central have the power to require the Stabilization Bank, or deposits elsewhere. Fund to cease expanding its overdraft at the (8) The Fund should be permitted to invest Bank or to reduce it to any extent the Bank in high-grade foreign securities any of its gold deems advisable. or foreign exchange not pledged as security for (4) Profits and losses from the operation of its liabilities with due regard to the need to the Fund should be for the account of the Treas- have a considerable portion of its foreign exury. change resources sufficiently liquid for im- (5) The Fund should be required to publish mediate use. audited reports showing the disposition of profits and any disposition of foreign exchange VIII. MISCELLANEOUS PROVISIONS or gold made at prices other than the prevailing The Bank should be authorized to hold market price at reasonable intervals after the deposits only of commercial banks, the Governtransactions take place. ment, governmental institutions, and foreign (6) The President of the Republic should governments and central banks. Deposits may have power to order, on the recommendations be accepted in any currency at the discretion of of the Fund Committee, that any or all foreign the Bank. exchange transactions, imports, exports, and The law might provide for the adoption of international movements of funds be subject to some symbol for the peso in order to facilitate license by the Minister of Finance. its differentiation from the dollar. (7) The Fund should be authorized to hold The Bank should have the power to require pesos against its overdrafts at the Central Bank, examinations and statements of condition of in any form acceptable.to the Bank. banks in Cuba audited by public accountants The purpose of this provision is to make it acceptable to the Bank, and to authorize or possible, when desirable, not to reveal the time prohibit the opening of new banks and branches. and the magnitude of the operations of the The Bank should be authorized to conduct Stabilization Fund. Operations may be con- research, to publish bulletins and reports, and ducted in confidence much more successfully to obtain information necessary for the conduct if, at a time when the Fund is selling its gold or and formation of its policies. dollars in order to support the peso, it can The Central Bank should be the fiscal agent maintain its overdraft at the Central Bank of the Treasury of the Republic, and as such rather than reduce it as soon as gold or dollars should perform such services as are typically 796 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE AMERICAN TECHNICAL MISSION TO CUBA required of fiscal agents by the Minister of III. LOANS AND INVESTMENTS Finance. % Expenses due directly to the carry- The Bank shall have the power to: ing out of such services should be reimbursed to Rediscount for member banks 12.0 day the Bank by the Treasury. commercial and 180 day agricultural The Central Bank should be free of certain paper or make 90 day advances secured taxes (to be specified by Cuban tax specialists). by such paper. It possibly should have the mail franking Make direct emergency 90 day loans to privilege, though this is not essential. member banks on any sound assets. The Bank probably should have the power Extend loans to the Government, subject to establish branches and agencies. to specified limitations. Extend loans to official credit agencies, SUMMARY OF PRINCIPAL subject to specified limitations. RECOMMENDATIONS Help finance the Stabilization Fund's accumulation of gold or foreign exchange. I. CAPITAL Make direct loans to the public under 5 million pesos in cash of which about 3 specified emergency conditions. million to be subscribed by member banks Carry out open-market purchases and sales and about 2. million by the Government. to implement credit policy. 3 million pesos of capital surplus, to be IV. NOTE ISSUE AND THE RESERVE REQUIREcontributed by the Government in the form MENTS OF THE CENTRAL BANK of special Treasury obligations. The Bank to have the exclusive note issue Dividends on member-bank shares to be power. limited to 4 per cent; the Government to The Bank to assume the silver certificate receive no dividends, but to receive all liability and the silver peso reserves. earnings after provision for earned surplus, The Bank to maintain a reserve against its which accumulates on behalf of the notes (and possibly its peso deposits) of Government. Z5 per cent in the gold- or dollar-secured II. MANAGEMENT overdrafts of the Stabilization Fund, subject to emergency relaxation. This reserve A Board of Directors of seven members to requirement not to apply against notes control the Bank. The members will issued by the Bank to replace silver cerinclude: tificates. The Governor of the aBank, selected by The Bank to hold full dollar cover against the President. dollar deposits. The Finance Minister, ex officio. The head of the Agricultural Bank or an V. RESERVE REQUIREMENTS OF COMMERCIAL additional Class B director. BANKS Two Class A directors appointed by the The commercial banks to hold reserves of President from panels nominated by Z5 per cent of their deposits (in the currency the member banks. of the deposit), of which four-fifths is to Two Class B directors appointed by the be maintained as a balance in the Central President. Bank. An Advisory Council on Monetary Policy, The Bank to have power to vary reserve composed of Cabinet officers and Presi- requirements of member banks as a means dential appointees, to consult and advise of credit control, with limitations on this with the Government and the Bank on power designed to protect the interest of major matters of credit policy. the banks. AUGUST 1942. 797 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE AMERICAN TECHNICAL MISSION TO CUBA VI. STATUS OF THE DOLLAR IN CUBA Minister, the Governor of the Bank, and The legal tender power of the dollar to be an appointee of the Finance Minister. terminated at once, but banks to be re- The Fund to finance its operations by interestquired to hold dollar assets substantially free overdraft at the Central Bank unless equal to their dollar liabilities. the Bank, for reasons of credit policy, At the end of five years all legal reserves to withdraws this privilege, in which case be held in pesos. the Fund is to turn to the Treasury or the money market for accommodation. VII. XHE STABILIZATION FUND AND ITS RELA- The Fund to stabilize the foreign exchange TION TO THE CENTRAL BANK value of the peso at the equivalent of the The stocks of monetary gold and foreign gold value of the peso, permitting only exchange to be segregated in a Stabiliza- minor technical fluctuations. tion Fund, to be administered, for the Power to change the price of gold (and hence account of the Government, by the Finance parity of the peso) to rest with Congress. G. A. EDDY, Treasury Department A. T. ESGATE, Farm Credit Administration W. R. GARDNER, Board of Governors of the Federal Reserve Systejn F. A. SOUTHARD, JR., Treasury Department H. R. SPIEGEL, Treasury Department G. B. VEST, Board of Governors of the Federal Reserve System H. D. WHITE, Chief of Mission, Treasury Department APPENDIX Each of the items in the balance sheet above may be briefly explained. When the Bank TENTATIVE BALANCE SHEETS OF assumes the liability for the 79 million pesos THE PROPOSED CENTRAL BANK of silver certificates outstanding on January 31, Case I. The balance sheet of the Central 1942. (item g), it will receive the 78 million Bank, set up in accordance with the terms of pesos of silver coin held against them (item a) this report and on the basis of the Cuban curand the 1 million pesos of gold so held. It is rency and deposit figures of January 31, 1942., assumed that the *Fund, which will hold the would look somewhat as follows: official gold and foreign exchange of Cuba, buys this 1 million pesos of gold by a corre- [In millionsof pesos or dollars: $1 Assets Liabilities sponding overdraft on the Bank (item c). a. Silver coin 78 g. Silver certificates 79 b. Silver certificates 16 h. Bank's own notes 0 The overdraft is increased to z million pesos c. Fund overdraft 2 i. Government deposit 1 d. Securities without interest 3 j. Commercial banks: 20% when the Fund buys the 1 million of dollar e. Earning assets _ 2 of peso deposits 13 Total peso assets "ioi k. Capital: Banks 3 currency which the Government held . on «14 1. Government 2 f. Dollar currency -j— m. Capital Surplus 3 January 31, 1942., and which is assumed to be Total assets " Total peso liabilities... 101 Related Items n. Commercial banks: 20% deposited with the Central Bank (item f). The Peso notes outside banks.. 53 of dollar deposits $14 2. million of peso currency that the Government Peso cash in commercial Total liabilities HT5 banks: held on January 31, 1942., is assumed to be paid o. Legal minimum (5% of Related Items peso deposits) 3 Required reserves of Cen- in as the Government's subscription to the p. Excess reserves I tral Bank: Commercial bank deposits: 25% of its notes 0 capital stock of the Bank (item /), an operation Peso ."... 67 25% of its peso deposits Dollar $72 (if required) 4 which contributes z million pesos to the Bank's Total .""139 100% of its dollar de- holdings of silver certificates (item F). The posits $14 798 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE AMERICAN TECHNICAL MISSION TO CUBA remaining 14 million pesos of silver certificates be more than 100 million dollars a year. Some of in this item are deposited by the commercial this will be used in payment of dividends banks. These banks had 2.^ million pesos of abroad and for other purposes and much of silver certificates and coin in their vaults on what is not used up may be held in the form of January 31, 1942-. Under the plan proposed dollars instead of being converted into pesos. they could count only 3 million pesos of this The outcome is unpredictable, but it would be (5 per cent of their peso deposits: item 0) toward reasonable to suppose that the Stabilization meeting their legal requirements. They might Fund will be called upon to buy at least wish to hold another 7 million pesos (10 per cent 50 million dollars in the next year or two. If exof their peso deposits: item p) in excess of the porters and others generally convert their legal minimum as working reserves. This accruing dollars into pesos, Fund acquisitions would leave them only 14 million pesos of may be several times this figure. silver certificates to pay in to the Central Bank Should 50 million dollars be acquired by the as a subscription to capital (item k: 3 million Fund by means of an overdraft on the Central pesos) and toward providing the reserve bal- Bank, and should the resulting 50 million pesos ances (item j: 13 million pesos) which the law go half into circulation and half into commercial will require them to keep with the Central bank deposits, the Central Bank's balance sheet Bank. The 14 million pesos of silver certifi- and related items presented in Case I would be cates are thus 2. million pesos short of the 16 altered as shown below: million required for capital and reserve balances. [In millions of pesos or dollars: $1 This 2. million pesos the commercial banks may Assets Liabilities borrow directly from the Central Bank or the Silver coin 78 Silver certificates 79 Silver certificates 0 Bank's own notes. 29* Central Bank may put the funds out through Fund overdraft 52 Government deposit 1 Securities without interest.. 3 Commercial banks: 20% of loans to the Government or to the Agricultural Earning assets 2 peso deposits 18* Total dollar assets 135 Capital: Banks 3 Bank (if it is in existence) or possibly through Dollar currency.._. LL.. $14 Capital S G ur o p v l e u r s n ment __3 2 _ open-market operations. Whatever the method, Total assets.......... 77.. ~149 Total peso liabilities 135" Related Items Commercial banks: 20% of earning assets of the Bank (item e) will Peso notes outside banks... 83 dollar deposits $14 Peso cash in commercial Total liabilities 149 amount to z million pesos. The 3 million peso banks: surplus of the Bank (item ni) is contributed Le p g e a s l o m de i p n o im si u ts m ) (5% of 5 Required R r e e l s a e t r e v d e s I te o m f s Cen- Excess reserves 25* by the Government in the form of securities tral Bank: Commercial bank deposits: 25% of its notes 7* without interest (item d). This accounts for Peso 92 25% of its peso deposits Dollar _$72 (if required) 5* all the peso items. The dollar items reflect Total 164 100% of its dollar deposits. $14 the fact that the commercial banks are required to * To the extent that excess reserves are kept in the form of balances at the Central Bank, the Bank's issue of its own notes will be reduced, pay in zo per cent of their dollar deposits (item n) and its required reserves will be altered accordingly. in the form of dollar currency (item/). Should Meanwhile dollar deposits of the commercial the Central Bank in order to obtain earnings banks could grow rapidly without affecting invest this currency in dollar securities abroad, the peso earning assets of the Central Bank. which it has the right to do, item / would Their only effect on the peso balance sheet change its title accordingly; but the transaction would be to increase capital subscriptions, would be without effect on the peso balance which the banks are required to make at the sheet and would add nothing to the Bank's rate of z per cent of their total deposits, and to power to influence the volume of peso credit cut down correspondingly the Central Bank's through open-market operations. note issues. The reduction in note issues would Case II. The main report has called atten- occur because the commercial banks would use tion to the wide range of possibilities in Cuba's their idle excess reserves (in the form of curbalance of international payments during the rency in their vaults) to make the capital war. The surplus on merchandise trade may subscription. AUGUST 194Z 799 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE AMERICAN TECHNICAL MISSION TO CUBA Several comments may be made on this second To the extent that the Fund used Treasury balance sheet. There has been a primary ex- revenues for this purpose or borrowed from the pansion of 50 million pesos in the Cuban public's commercial banks (or from the depositors at means of peso payment. Money in circulation these banks) excess reserves of the commercial outside the commercial banks has risen 43 per banks would be drawn upon to pay off the cent as compared with Case I. Peso deposits Fund's overdraft at the Central Bank and have risen 37 per cent and dollar deposits, al- hence would disappear. though not shown as increasing in the table, While it is true that the only instrument the could in fact increase by much greater percent- Central Bank could use to eliminate secondary ages without material effect upon peso earning expansion on the basis of excess reserves once assets of the Bank. These peso loans or earning they had accumulated (as in Case II) is that of assets remain at the low figure of 2. million pesos requiring the Fund to repay a portion of its (i.e. no additional loans have been made to the overdraft, the excess reserves might have been commercial banks, the Government, or the prevented from appearing at all had the comproposed agricultural bank). Should the Bank mercial banks been required to hold 100 per allow its loans to run off completely and should cent reserves from the very first against any it convert its 3 million pesos of Government expansion of deposits. Even this extreme use securities without interest into 90-day bills of the power to raise reserve requirements, and sell them to the market, as it has the right however, would not prevent the primary 50 to do, it would diminish the peso reserves of million peso increase in Cuban currency and the commercial banks by only 5 million. The deposits resulting from a Fund purchase of commercial banks hold 48 million pesos of 50 million dollars through overdraft at the reserves—2.5 million pesos more than the 23 Central Bank. It is also unlikely that a million (Z5 per cent of 92. million of peso deprimary expansion of this sort could be wholly posits) which the law requires them to keep prevented by financing the Fund outside the either with the Central Bank or in their own Central Bank, but the expansion would be vaults. This 2.5 million pesos of excess recurtailed to the extent that (1) the Fund emserves would be reduced to zo million if the ployed Treasury resources, (x) Fund notes were Central Bank eliminated its earning assets and sold to others than the commercial banks, or sold all its securities without interest; but the (3) Fund notes, sold to the commercial banks, 20 million, amounting to ii per cent of the replaced maturing loans without expanding expanded volume of peso deposits, would still the total loan portfolio of these banks. It be far greater than any reasonable working would hardly be possible to finance the Fund needs of the commercial banks, which in Case I on such a scale by these three methods alone, were assumed to be 10 per cent of peso deposits— and hence some primary expansion of coma generous figure. mercial bank credit on reserves supplied by On the basis of these excess reserves the comthe Central Bank would appear to be inevitable. mercial banks could expand their loans and deposits still further in an active business In Case II the full primary expansion of 50 situation, the exact amount depending upon million pesos has been assumed. how much the public added to their pocket One further point may be noted in connection money instead of increasing their deposits with the excess reserves of the commercial banks at the banks. It is clear that if the Central in Case II. It is assumed that they are all kept Bank wished to prevent this secondary expan- in the form of additional currency in the banks' sion of currency and deposits in Cuba, the only own vaults. They could almost as well be kept instrument it could employ would be that of in the form of an additional balance at the Cenrequiring the Fund to reduce its overdraft. tral Bank. Were the whole 15 million pesos 800 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE AMERICAN TECHNICAL MISSION TO CUBA thus transferred, the note issue of the Central the same whether the commercial banks decided Bank would drop from 2.9 million pesos to 4 to hold their own reserves as a balance with the million and commercial bank deposits at the Central Bank or as currency in their vaults. Central Bank would rise from 18 million pesos Throughout Case II the assumption has been to 43 million. The transfer would be without made that the Fund purchases 50 million dollars effect upon the assets of the Central Bank but, by overdraft on the Central Bank, and the if the Central Bank were required to keep Z5 effects of this operation on the credit situation per cent reserves against its note issue alone, its have been traced. The discussion in the main required reserves would be reduced by the dis- report suggests the possibility that before the cretionary action of the commercial banks war is over the Fund may have to purchase a from 7 million pesos to 1 million. If, however, much larger amount of dollars than this. It the Central Bank were required to hold 1.5 per is evident that the greater the scale of the cent reserves against both its note issue and its Fund's operations, the greater the effects on peso deposits, its required reserves would be the domestic credit situation will be. AUGUST 801 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CURRENT EVENTS Admissions of State Banks to Membership in the Missouri Federal Reserve System Tipton—Tipton Farmers Bank The following State banks were admitted to membership in the Federal Reserve System New York during the period June 16, 1942., to July 15, Poughkeepsie—Poughkeepsie Trust Company 1941, inclusive. Ohio Illinois Lewisburg—The Peoples Banking Company of Chicago—South Chicago Savings Bank Lewisburg East Moline—State Bank of East Moline Millersburg—The Commercial and Savings Bank Indiana of Millersburg Ohio West Alexandria—The Twin Valley Bank Cory don—Old Capital Bank and Trust Company West Manchester—The First State Bank of West Manchester Kansas Larned—The First State Bank of Larned South Carolina Beaufort—The Peoples Bank Maryland Pikesville—The Peoples Bank Texas Hempstead—Citizens State Bank Michigan Marion—Marion State Bank Grand Rapids—Union Bank of Michigan Seguin—Seguin State Bank & Trust Co. 802. FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NATIONAL SUMMARY OF BUSINESS CONDITIONS Corn-piled July z$ and released for publication July 24. Figures shown on charts may differ from preliminary figures used in text. Industrial activity continued to advance somewhat, reflecting a reduction in activity at during June and the first half of July. Volume cotton mills from earlier peak levels. Paperof goods distributed to consumers continued board production decreased sharply further and substantially below a year ago and commodity there was also a decline in activity in the prices generally showed little change. printing industry. On the other hand, output of manufactured food products increased and PRODUCTION shoe production showed less than the customary Industrial output increased further in June and seasonal decline. the Board's seasonally adjusted index rose from Mineral production continued large in June. 174 to 177 per cent of the 1935-39 average. Coal production was maintained at peak levels; Production in the machinery, transportation output of crude petroleum showed little change, equipment, and other armament industries following the sharp decline that occurred during continued to advance, reflecting further progress March and April. Lake shipments of iron ore toward meeting the requirements of the war in June amounted to ix, 600,000 gross tons and production program. Steel production declined at the month end stocks at lower Lake ports somewhat in June but increased to earlier high totaled 31,000,000 tons as compared with levels in the first three weeks of July. Lumber z6,600,000 tons a year ago. production increased seasonally in June, while Value of construction contracts awarded, as in the furniture industry, where activity usually reported by the F. W. Dodge Corporation, conrises at this time of year, there was a decline, tinued to increase in June and was 57 per cent reflecting in part the fact that a number of above the previous record high month of August plants in the industry are being converted to 1941. The sharp rise in June reflected a conthe manufacture of war products. tinued increase in awards for public projects, In industries manufacturing nondurable goods, which accounted for about 93 per cent of all output as a whole showed little change from contracts let during the month. May to June. Textile production declined COST OF LIVING INDUSTRIAL PRODUCTION 160 200 200 120 zz 180 180 110 , ALL ITEMs 100 160 160 90 90 140 r 130 \n 130 i A J 120 CLOTHING \J/ 120 120 f \ \ v V 110 RENT I \ ' ^ y 4^ \ 110 / \ 100 } •Ls-/' 100 100 J \ J FOOD 90 90 80 80 80 1936 1937 1938 1939 1940 1941 1942 Bureau of Labor Statistics' indexes, 1936-39 average = 100. Fif- Federal Reserve monthly index of physical volume of production, teenth of month figures. Last month in each calendar quarter through adjusted for seasonal variation, 1935-39 average = 100. Latest figures September 1940, monthly thereafter. Latest figures shown are for shown are for June 1942. June 1942. 8O3 AUGUST 1942. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NATIONAL SUMMARY OF BUSINESS CONDITIONS Retail prices of uncontrolled foods advanced DISTRIBUTION sharply from May to June and the Bureau of Distribution of commodities to consumers Labor Statistics price index for all foods rose i J^ declined somewhat further in June. Smaller points to 12.3 per cent of the 1935-39 average— sales were reported by both department stores an increase of one-fourth since the beginning of and mail-order houses, while sales at variety the current advance in March 1941. stores were maintained at about the May rate. In the first half of July department store sales BANK CREDIT showed less than the customary sharp seasonal Member banks in leading cities increased their decline. holdings of Government securities sharply Volume of railroad freight traffic was main- during the first half of July. Purchases included tained in large volume during June and the first portions of increased Treasury bill issues and of half of July. The number of cars loaded was the new 2. per cent 7- to 9-year bond. This below the level that prevailed a year ago, how- followed a substantial growth in the second ever, reflecting a sharp reduction in carloadings quarter of the year when member banks absorbed in less-than-carload lots as a result of orders by about 3.3 billion dollars, or more than half of the Coordinator of Transportation which raised the increase in Treasury open-market issues. the minimum permissible weights for such load- All classes of banks showed large increases, the ings and thereby effected a fuller utilization of largest percentage increases being in Chicago existing equipment. and at reserve city banks. Excess reserves of member banks have been COMMODITY PRICES at a lower level in July than in June, because of Prices of most commodities both at wholesale increased need for reserves arising out of deposit and retail continued to show little change from growth, the continued currency drain, and a the middle of June to the middle of July. Prices large temporary increase in Treasury deposits at of cotton, wool, and some other agricultural Reserve Banks. Substantial System open-market commodities, which had declined in the early operations partially offset the loss of reserves part of June, advanced in this period. from these sources. The decrease in excess About twenty additional maximum price reserves was concentrated in New York and schedules were announced covering a wide Chicago, reducing excess funds in those cities variety of products and in some cases requiring to low levels. Adjusted demand deposits conprice reductions. On the other hand, Federal tinued to rise at reporting banks in leading approval was given for higher prices on various cities except in New York. processed fruits and vegetables, textile products, Yields on United States Government securities petroleum products sold on the East Coast, and and other money rates have shown little change services supplied to consumers. in recent weeks. MEMBER BANKS IN 101 LEADING CITIES EXCESS RESERVES OF MEMBER BANKS B8ILLIONS OF DOLLARS 1936 1937 1938 1939 1940 1941 Wednesday figures. Commercial loans, which include industrial and Wednesday figures, partly estimated. Latest figures shown are for agricultural loans, represent prior to May 19, 1937 so-called "Other July 22, 1942. loans" as then reported. Latest figures shown are for July 22,1942. 8O4 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FINANCIAL, INDUSTRIAL, AND COMMERCIAL STATISTICS UNITED STATES PAGE Member bank reserves, Reserve Bank credit, and related items 807 Federal Reserve Bank discount rates; rates on time deposits, reserve requirements, margin requirements 808 Federal Reserve Bank statistics 809-813 Reserve position of member banks; deposits in larger and smaller centers 814 Money in circulation 815 Gold stock and gold movements; bank suspensions; bank debits 816 All banks in the United States, number, deposits, loans and investments 817 Condition of all member banks 818-819 Weekly reporting member banks 8x0-8x3 Commercial paper, bankers* acceptances, and brokers' balances 824 Money rates and bond yields 815 Security markets 82.6-82.7 Corporate profits 8x8 Treasury finance 819-831 Governmental corporations and credit agencies; Postal Savings System 831-834 Business indexes 835-845 Department store statistics 846 Wholesale prices 847 Current statistics for Federal Reserve chart book 848-850 Earnings and expenses of Federal Reserve Banks during the sixmonth period ended June 30, 1942. 851 Tables on the following pages include the principal available statistics of current significance relating to financial and business developments in tne 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. AUGUST 1942 805 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 22 MEMBER BANK RESERVE BALANCES TREASURY CASH AND DEPOSITS 'V. K :A. "* 1936 1937 1938 1939 1940 1941 1942 Latest figures for July 22. See page 807. 8o6 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MEMBER BANK RESERVES, RESERVE BANK CREDIT, AND RELATED ITEMS [In millions of dollars] Reserve Bank credit outstanding Member Treas- bank reserve Date c B o d e i u i l s d n l - s t- To U t . a l S. s e G T cu a o b u r n r e v i r l i y d a e l t s i r s e n - s m o e A t n h t l e l r ot A h l e l r1 Total s G to o c l k d T s r c t o e i r u a u n e u n r n g r a y c t - d - s y - - M i c n ti u o o c n l n a i e r - y - T h c i u r o n a e r l g s a y d h s s - - u p s w r e e R o y F r r i s e a e v t d i h - l d e t e s - - p m N o b d s e o e e i m n - r ts - - c O s F o R e e a t u e r r c h e v d n a - - e l e - t r s Tot b a a l lances certifi- Banks cates Monthly averages of daily figures: 1941—Apr 2,184 2,184 85 2,272 22,441 3,115 8,995 2,277 892 1,774 13,600 5,883 May 2,184 2,184 75 2,262 22,547 3,129 9,193 2,264 618 1,926 287 13,650 5,831 June 2,184 94 2,280 22,602 3,141 9,442 2,249 987 1,856 290 13,201 5,351 1942—Apr 2,275 29 2,246 150 2,432 22,679 3,281 11,645 2,178 197 1,428 295 12,649 2,951 May 2,457 161 2,296 150 2,614 22,706 3,296 11,898 2,191 317 1,407 294 12,510 2,667 June 2,580 258 2,322 176 2,761 22,725 3,310 12,213 2,192 136 1,334 297 12,624 2,704 End of month figures: 1941—Apr. 30 2,184 2,184 48 2,234 22,506 3,122 9,071 2,283 865 1,830 13,524 5,771 May 31 2,184 2,184 92 2,280 22,575 3,134 9,357 2,215 443 1,965 285 13,724 5,801 June 30 2,184 81 2,267 22,624 3,149 9,612 2,275 980 1,831 290 13,051 5,210 1942—Apr. 30 2,357 91 2,265 105 2,468 22,691 3,289 11,767 2,182 201 1,345 295 12,658 2,791 May 31 2,489 183 2,406 138 2,634 22,714 3,305 12,074 2,192 261 1,429 292 12,405 2,486 June 30 2,645 310 2,336 126 2,775 22,737 3,313 12,383 2,187 290 1,362 297 12,305 2,362 Wednesday figures: 1941—Sept. 3 12 2,184 2,184 45 2,241 22,722 3,180 10,034 2,400 708 1,834 284 12,884 4,857 Sept. 10 14 2,184 2,184 58 2,255 22,733 3,185 10,036 2,397 456 1,843 283 13,158 5,111 Sept. 17.... 11 2,184 2,184 121 2,316 22,741 3,188 10,046 2,408 334 1,836 293 13,328 5,249 Sept. 24 12 2,184 2,184 83 2,279 22,749 3,194 10,070 2,350 379 1,856 293 13,273 5,202 Oct. 1 11 2,184 2,184 49 2,244 22,761 3,196 10,183 2,259 309 1,918 292 13,240 5,193 Oct. 8 11 2,184 2,184 70 2,265 22,772 3,203 10,237 2,241 304 1,877 291 13,290 5,209 Oct. 15 8 2,184 2,184 121 2,313 22,778 3,207 10,283 2,222 259 1,920 292 13,321 5,234 Oct. 22 4 2,184 2,184 103 2,291 22,786 3,214 10,278 2,195 977 1,800 292 12,749 4,655 Oct. 29 5 2,184 2,184 61 2,250 22,796 3,219 10,307 2,209 915 1,910 292 12,632 4,602 Nov. 5 6 2,184 2,184 57 2,247 22,788 3,221 10,421 2,195 933 1,821 291 12,594 3,409 Nov. 12 6 2,184 2,184 72 2,263 22,793 3,222 10,472 2,213 807 1,790 290 12,707 3,540 Nov. 19 5 2,184 2,184 118 2,307 22,778 3,228 10,535 2,184 598 1,764 290 12,942 3,692 Nov. 26 6 2,184 2,184 94 2,284 22,781 3,230 10,567 2,195 440 1,678 288 13,126 3,799 Dec.3 6 2,184 2,184 100 2,289 22,770 3,233 10,717 2,180 321 1,609 288 13,178 3,860 Dec. 10 4 2,196 2,184 85 2,286 22,774 3,236 10,834 2,185 157 1,614 287 13,219 3,842 Dec. 17 5 2,240 2,229 188 2,433 22,747 3,238 11,023 2,193 925 1,483 297 12,497 3,085 Dec. 24 7 2,243 2,233 249 2,499 22,750 3,244 11,224 2,195 908 1,422 297 12,447 3,056 Dec. 31 3 2,254 2,244 104 2,361 22,737 3,247 11,160 2,215 867 1,360 291 12,450 3,085 1942—Jan. 7.... 4 2,254 2,244 128 2,386 22,742 3,248 11,109 2,220 663 1,376 291 12,717 3,385 Jan.14 .. 4 2,254 2,244 133 2,390 22,740 3,252 11,062 2,224 419 1,395 291 12,992 3,561 Jan.21 .. 3 2,250 2,244 130 2,383 22,750 3,255 11,077 2,204 284 1,387 291 13,145 3,584 Jan. 28.. 4 2,243 2,243 92 2,339 22,744 3,256 11,097 2,196 302 1,379 290 13,075 3,479 Feb. 4... 4 2,243 2,243 70 2,316 22,738 3,259 11,231 2,201 376 1,367 289 12,849 3,326 Feb. 11.. 3 2,243 2,243 86 2,331 22,741 3,263 11,319 2,194 319 1,310 288 12,905 3,357 Feb. 18.. 3 2,250 2,250 151 2,404 22,712 3,264 11,339 2,181 264 1,251 288 13,058 3,460 Feb. 25.. 4 2,262 2,262 125 2,392 22,715 3,266 11,422 2,189 798 1,154 288 12,521 2,878 Mar. 4. . 6 2,262 2,262 134 2,402 22,705 3,269 11,518 2,180 287 1,270 286 12,835 3,208 Mar. 11. 6 2,253 2,253 88 2,347 22,709 3,271 11,520 2,176 60 1,317 286 12,968 3,266 Mar. 18. 6 2,249 2,249 96 2,351 22,686 3,273 11,474 2,168 59 1,373 297 12,939 3,161 Mar. 25. 6 2,244 2,244 76 2,326 22,684 3,274 11,462 2,175 472 1,352 296 12,527 2,847 Apr. 1... 9 2,244 2,244 86 2,339 22,672 3,277 11,593 2,187 362 1,354 295 12,496 2,999 Apr. 8... 7 2,243 2,243 134 2,384 22,675 3,279 11,610 2,177 190 1,350 295 12,715 3,169 Apr. 15.. 9 2,254 10 2,244 152 2,415 22,678 3,280 11,624 2,166 301 1,485 295 12,502 2,886 Apr. 22.. 4 2,296 48 2,247 100 2,400 22,686 3,284 11,642 2,189 243 1,531 296 12,470 2,752 Apr. 29.. 7 2,350 89 2,261 86 2,443 22,689 3,286 11,723 2,186 128 1,421 297 12,662 2,815 May 6... 2,436 137 2,299 128 2,572 22,703 3,291 11,845 2,193 376 1,413 295 12,444 2,691 May 13.. 2,484 185 2,299 119 2,612 22,706 3,294 11,861 2,191 158 1,440 295 12,667 2,925 May 20.. 2,445 145 2,299 128 2,578 22,709 3,299 11,888 2,188 304 1,427 293 12,486 2,565 May 27.. 2,489 183 2,306 2,584 22,712 3,302 11,971 2,197 239 1,430 293 12,467 2,535 June 3... 2,532 226 2,306 185 2,723 22,715 3,306 12,141 2,188 110 1,358 293 12,653 2,783 June 10.. 2,568 252 2,316 135 2,708 22,717 3,310 12,176 2,213 92 1,333 293 12,629 2,782 June 17.. 2,579 257 2,322 220 2,803 22,729 3,311 12,208 2,189 160 1,277 304 12,706 2,791 June 24.. 2,583 254 2,329 110 2,698 22,735 3,313 12,231 2,191 139 1,358 303 12,523 2,648 Julyl... 2,728 391 2,337 142 2,873 22,739 3,314 12,416 2,195 485 1,341 297 12,192 2,259 July 8... 2,909 553 2,356 157 3,069 22,740 3,315 12,489 2,190 548 1,353 297 12,246 2,322 July 15.. 3,038 673 2,365 185 3,227 22,742 3,319 12,502 2,201 946 1,302 295 12,042 2,065 July 22.. 3,047 679 2,367 144 3,196 22,745 3,321 12,546 2,223 298 1,347 295 12,551 2,296 1 Includes industrial advances shown separately in subsequent tables. 2 End of month and Wednesday figures estimated. NOTE.—" with available in BULLETIN for August i7jj, yij. 177holdings will be supplied on request. AUGUST 807 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BANK DISCOUNT RATES [In effect July 31, 1942. Per cent per annum.] Discounts for and advances to member banks Advances to individuals, partnerships, or corporations other than member banks secured by direct obligations of the U. S. (maturities Advances secured by Discounts of and ad- not exceeding 90 days—last par. Sec. 13) direct obligations of vances secured by eli- Other secured advances Federal Reserve Bank the U. S. (maturities gible paper (maturities [maturities not exceedn — ot l e a x st c e p e a d r i . n g S e 9 c 0 . 1 d 3 a ) y 1 s no — t S e e x c c . e 1 ed 3 i a n n g d 9 1 0 3 d a) a 2 ys ing 4 mos.—Sec. 10 (b)] To nonmember banks To others Rate Effective Rate Effective Rate Effective Rate Effective Rate Effective Boston Sept. 1, 1939 1 Sept. 1,1939 2 Sept. 2, 1937 Sept. 1, 1939 Apr. 29, 1938 New York Aug. 25, 1939 1 Aug.27,1937 2 Oct. 10, 1935 Aug. 25, 1939 Feb. 8,1934 Philadelphia.. Mar. 21, 1942 1 Mar.21,1942 2 Sept. 4, 1937 Mar. 21, 1942 Sept. 1, 1939 Cleveland Apr. 11, 1942 1 Apr. 11,1942 2 Oct. 19, 1935 Apr. 11, 1942 May 11, 1935 R A i t c la h n m ta ond M Se a p r t . . 1 1 4 6 , , 1 1 9 9 3 4 9 2 1 1 M M a a r r . .2 1 1 4 , , 1 1 9 9 4 4 2 2 2 2 A Se u p g t . . 2 1 1 0 , , 1 1 9 9 3 3 7 7 M Se a p r t . . 1 1 4 6 , , 1 1 9 9 4 3 2 9 4 A Fe p b r . . 2 1 3 9 , , 1 1 9 9 3 3 8 4 Chicago Sept. 1, 1939 1 Feb. 28,1942 2 Aug. 21, 1937 Sept. 1, 1939 Oct. 16, 1933 St. Louis Sept. 16, 1939 1 Mar. 14,1942 1* Mar. 14, 1942 Sept. 16, 1939 3 Mar. 14, 1942 Minneapolis... Mar. 28, 1942 1 Mar. 28,1942 2 Aug. 24, 1937 Mar. 28, 1942 3 Oct. 8, 1938 Kansas City.. Sept. 16, 1939 1 Apr. 11,1942 2 Sept. 3, 1937 Sept. 16, 1939 Apr. 16, 1938 Dallas......... Sept. 16, 1939 1 Mar.21,1942 2 Aug. 31, 1937 Sept. 16, 1939 Apr. 16, 1938 San Francisco Apr. 4, 1942 1 Apr. 4,1942 2 Sept. 17, 1937 Apr. 4, 1942 Oct. 19, 1933 1 Rates shown also apply to advances with maturities not exceeding 15 days secured by fully guaranteed obligations of the F.F.M.C. or the H.O.L.C. 2 Discounts of certain bankers' acceptances and of agricultural paper may have maturities not exceeding six months and nine months, respectively. Rates shown also apply to advances with maturities not exceeding 15 days secured by obligations of Federal Intermediate Credit Banks maturing within six months. FEDERAL RESERVE BANK BUYING RATES ON BILLS FEDERAL RESERVE BANK RATES ON INDUSTRIAL AD- [Per cent per annum] VANCES AND COMMITMENTS UNDER SECTION 13b OF THE FEDERAL RESERVE ACT Maturity R Ju a l t y e o 3 n 1 In g i e n f n fe in c g t — be- Pre ra v t i e ous [I M n e a f t f u ec ri t t i J e u s l y n o 3 t 1 . e x P c e e r e d c i e n n g t f p i e v r e a y n e n a u r m s ] Treasury billsl % Apr. 30, 1942 To industrial or Bankers' acceptances :2 commercial To financing institutions 1- 90 days Oct. 20, 1933 1 businesses 91-120 days do 1 121-180 days do Discounts or 1 Established rate at which Federal Reserve Banks stand ready to buy Federal Reserve Purchases all Treasury bills offered. Bank 2 Minimum buying rates on prime bankers' acceptances. adva O n n c es1 t co m m O e m n n t i s t- fo p r o w O rt h n io ic n h On re- m O it n m c e o n m ts institu- maining tion is portion obligated MEMBER BANK RESERVE REQUIREMENTS [Per cent of deposits] Boston .„„ New York Aug. 16, Mar. 1, Mayl, Apr. 16, Effec- Philadelphia...... Classes of deposits 1936- 1937- 1937- 1938- tive Cleveland and banks Feb. 28, Apr. 30, Apr. 15, Oct. 31, Nov. 1, 1937 1937 19382 1941 19412 Richmond Atlanta depo : s i d t e s m :1 an' S C t h . ic L a o g u o is 1-1H Central reserve city... 19^ 22$£ 26 22$* 26 On R A C e l t o l i s u m e m n r e t v e r m e y d e b c p e it o r y s b it a s n : ks 1 1 4 5 0 H ^ 1 1 S 7 2 J K ^ ? 2 1 6 0 4 M 1 5 2 X 2 1 0 4 D M K Sa a a i n n n l n l s F a a e r s s a a . p n C . o c . i . l i . t i s y s c o „ 2 2 2 2M H ^ H - - 5 - 5 5 5 1 See footnote to table on p. 814 for explanation of method of computing 1 Including loans made in participation with financing institutions. net demand deposits. * Rate charged borrower less commitment rate. 2 Percentages in this column are double the basic statutory requirements, * Rate charged borrower. which were in effect June 21,1917-Aug. 15,1936. 4 May charge same rate as charged borrower by financing institution, if lower. 6 Financing institution is charged }4, per cent on undisbursed portion of loan under commitment. MARGIN REQUIREMENTS* MAXIMUM RATES ON TIME DEPOSITS [Per cent of market value] Maximum rates that may be paid by member banks as established by Prescribed by Board of Governors of the Federal Apr. 1, Nov. 1, the Board of Governors under provisions of Regulation Q Reserve System in accordance with Securities 1936- 1937 [Per cent per annum] Exchange Act of 1934 Oct. 31, and 1937 after Nov. 1,1933- Feb. 1,1935- Effective Jan.31,1935 Dec.31,1935 Jan. 1,1936 For extensions of credit by brokers and dealers on listed securities, under Regulation T 40 Savings deposits For short sales, under Regulation T 50 Postal savings deposits... For loans by banks on stocks, under Regulation U.... 3 55 40 Other deposits payable: In 6 months or more.... 1 Reg. T and U limit the amount of credit that may be extended on a In 90 days to 6 months. security by prescribing a maximum loan value, which is a specified In less than 90 days percentage of its market value at the time of the extension; the "margin requirements" shown in this table are the difference between the market NOTE.—Maximum rates that may be paid by insured nonmember banks value (100%) and the maximum loan value. as established by the F. D. I. C, effective February 1, 1936, are the 2 Requirement under Reg. T was the margin "customarily required" same as those in effect for member banks. Under Regulation Q the rate by the broker. 3 Reg. U became effective May 1,1936. payable by a member bank may not in any event exceed the maximum NOTE.—Regulations T and U also provide special margin requirements on rate payable by State banks or trust companies on like deposits under "omnibus" accounts and loans to brokers and dealers. the laws of the State in which the member bank is located. 808 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

PRINCIPAL ASSETS AND LIABILITIES OF ALL FEDERAL RESERVE BANKS [In thousands of dollars] Wednesday figures End of month 1942 1942 1941 July 22 July 15 July 8 July 1 June 24 June 17 June 10 June 3 June May June Assets Gold certificates on hand and due from U. S. Treasury 20,549,626 20,549,627 20,550,626 20,550,627 20,550,627 20,556,02720,517,629 20,516,130 20,550,625 20,506,128 20,312,731 Redemption fund—F. R. notes.. 13,102 14,232 14,017 15,042 16,148 14,352 14,442 15,039 15,222 15,539 8,878 Other cash 269,365 270,162 260,907 259,247 286,246 274,766 274,925 268,093 263,756 277,477 261,307 Total reserves.... 20,832,09320,834,02120,825,550 20,824,916 20,853,021 20,845,145 20,806,996 20,799,262 20,829,603 20,799,144 20,582,916 Bills discounted: For member banks 3,387 2,921 1,824 1,843 3,634 4,149 5,416 5,376 1,792 6,565 1,772 For nonmember banks, etc. 1,500 1,500 1,500 1,500 1,500 500 500 500 1,500 500 Total bills discounted.... 4,887 4,421 3,324 3,343 5,134 4,649 5,916 5,876 7,065 1,772 Industrial advances 10,985 10,884 10,598 10,550 10,596 10,617 10,537 10,935 10,798 9,227 U.S. Government securities: Direct Bonds 1,641,236 1,638,696 1,637,220 1,618,081 1,610,781 1,604,594 1,601,344 1,606,332 1,616,631 1,606,332 1,359,200 Notes 721,300 721,300 714,100 714,100 713,600 712,600 709,600 692,500 714,100 692,500 820,300 Certificates 195,731 178,231 102,252 72,752 34,102 32,092 32,092 32,092 66,252 26,650 Bills 483,647 494,549 450,327 318,730 219,475 224,483 219,733 194,389 243,475 156,409 Guaranteed 4,775 4,775 4,775 4,775 4,775 4,775 4,775 6,775 4,775 6,775 4,600 Total U .S. Government securities, direct and guaranteed 3,046,689 3,037,551 2,908,674 2,728,438 2,582,733 2,578,544 2,567,544 2,532,088 2,645,233 2,488,666 2,184,100 Other Reserve Bank credit outstanding 133,303 174,065 146,414 130,944 99,183 209,013 123,706 173,669 115,654 127,438 71,590 Total Reserve Bank credit outstanding... 3,195,864 3,226,921 3,069,010 2,873,275 2,697,646 2,802,823 2,707,703 2,722,568 2,633,967 2,266,689 F.R. notes L in ia a b c il t i u ti a e l s c # irculation. 9,563,231 9,507,771 9,479,922 9,409,142 9,253,669 9,228,700 9,194,716 9,134,237 9,071,307 6,723,567 Deposits: Member bank —reserve account 12,551,31312,041,702 12,246,368 12,191,553 12,523,34312,706,484 12,628,910 12,653,09312,305,38512,404,790 13,050,968 U. S. Treasurer—general account 298,331 945,965 547,783 485,364 138,585 159,719 91,658 109,868 289,960 260,981 980,403 Foreign 886,555 870,645 872,227 886,029 965,028 961,478 978,308 942,555 901,639 944,944 1,233,273 Other deposits 460,139 430,868 481,156 455,401 393,182 315,414 354,751 415,556 460,345 483,610 598,028 Total deposits 14,196,33814,289,180 14,147,534 14,018,347 14,020,13814,143,095 14,053,62714,121,072 13,957,329 14,094,32515,862,672 Ratio of total reserves to deposit and F.R. note liabilities combined (per cent) 87.7 87.5 88.1 88.9 89.6 89.2 89.5 89.4 89.3 89.8 91.1 MATURITY DISTRIBUTION OF BILLS AND U. S. GOVERNMENT SECURITIES HELD BY FEDERAL RESERVE BANKS [In thousands of dollars] Total 1 W 5 i d th a i y n s 1 d 6 a t y o s 30 31 d a to y s 60 61 d t a o y s 90 9 m 1 t o d o n a t 6 y h s s 6 m 1 y t o o e n a th r s 2 1 y y t e o e a a r r s 5 2 y y t e e o a a r r s s 5 O y v e e a r rs Bills discounted: June 24 5,134 3,371 94 107 1,562 July 1 3,343 1,692 55 531 1,065 July 8 3,324 1,582 120 607 1,015 July 15 , 4,421 2,696 96 584 1,045 July 22 4,887 2,794 475 559 1,054 Industrial advances: June 24 10,596 5,558 460 689 217 534 705 1,413 1,020 July 1 10,550 5,670 280 665 249 546 742 1,400 998 July 8 10,598 5,534 908 101 171 792 675 1,443 974 July 15 10,884 5,613 909 153 158 916 783 1,408 944 July 22 10,985 6,264 338 170 167 792 772 1,560 922 U. S. Government securities, direct and guaranteed: June 24 2,582,733 74,371 44,187 167,117 64,902 136,700 287,175 353,000 1,455,281 July 1 2,728,438 35,568 61,587 62,233 159,567 159,027 147,200 287,175 353,500 1,462,581 Julys 2,908,674 74,371 49,754 106,913 230,676 147,865 176,700 287,175 353,500 1,481,720 July 15 ,.., 3,037,551 63,587 46,759 128,591 290,952 152,781 223,810 277,175 370,700 1,483,196 July 22 „.,.., 3,046,689 53,398 37,811 217,996 240,642 126,921 236,310 277,175 370,700 1,485,736 AUGUST 1941 809 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 d P el h p i h la ia - C l l a e n v d e- m Ri o c n h d - Atlanta Chicago Lo S u t. is M ap in o n li e s - City Dallas F S ra a n n - Assets Gold Certificates on hand and due from U. S. Treasury: June 24 20,550,627 ,167,659 7,675,776 1,241,016 11,697,956 846,826 603,019 3,,521,209 648,862 381,782 597,671 400,783 1,768,068 July 1 20,550,627 128,9247,748,255 1,244,036 1L, 668,365 864,005 627, ,511,933 642,294 395,552 600,801 416,4511,702,192 July 8 20,550,626 152,9817,635,276 1,260,765 1L,659,857 887,734 620, ,520,410 636,723 396,845 605,848 422,8121,750,837 July IS 20,549,627 159,3"5""3 "7,426,208 1,265,803 11,694,173 896,673 671,955 3,;537,705 642,200 403,322 623,009 414,9711,814,255 July 22 20,549,626 136,266 7,586,8751,247,867 1L, 675,308 861,588 626,482 3,,557,487 641,938 395,738 611,914 421,6351,786,528 Redemption Fund—Federal Reserve Notes: June 24 16,148 2,845 1,845 1,173 1,037 1,942 787 1,158 768 178 344 773 3,298 July 1 15,042 2,791 1,623 1,104 979 1,559 751 1,086 749 169 330 764 3,137 July 8 14,017 2,743 1,427 1,032 922 1,094 715 1,016 733 162 317 749 3,107 July 15 14,232 2,704 1,255 976 876 1,769 686 951 721 157 309 741 3,087 July 22 13,102 2,647 1,019 888 1,303 643 874 701 149 283 728 3,059 Other cash: June 24. 286,246 24,410 67,958 16,265 22,454 13,527 20,277 46,517 14,170 5,922 12,858 12,431 29,457 July 1... 259,247 20,721 62,132 14,769 22,977 10,193 17,728 43,450 12,504 6,051 11,690 11,684 25,348 July 8... 260,907 20,970 62,743 14,460 20,200 13,123 17,310 44,136 13,319 5,940 11,744 12,215 24,747 July 15.. 270,162 23,564 65,429 13,763 21,284 11,890 16,478 45,135 13,198 6,564 12,265 13,647 26,945 July 22.. 269,365 23,298 65,283 13,845 19,303 14,050 17,493 43,878 13,585 6,783 11,636 12,478 27,733 Total reserves: June 24 20,853,021 194,9147,745,579 1,258,454 1,721,447 862,295 624,0833,568,884 663,800 387,882 610,873 413,9871,800,823 July 1 20,824,916 ,152, ,812,010 1,259,9091,692,321 875,757 646,298 31,556,469 655,547 401,772 612,821 428,"899 1,730,677 July 8 20,825,550 176,694 7,,699,446 1,276,2571,680,979 901,951 638,5633,565,562 650,775 402,947 617,909 435,7761,778,691 July 15 20,834,021 ,185,6217,492,8921,280,542 1,716,333 910,332 689,119 3;, 583,791656,119 410,043 635,583 429,359 1,844,287 July 22 20,832,093 162,2117,653,177 1,262, 600 1,695,419 876,941 644,618 31!,602,239 656,224 402,670 623,833 434,8411,817,320 Bills discounted: Secured by U. S. Government obligations, direct and guaranteed: June 24 3,445 365 1,901 655 50 300 30 14 50 July 1 1,780 215 700 410 100 300 50 July 8 1,760 65 875 350 75 345 50 July 15 2,860 250 785 370 50 1,000 345 10 50 July 22 3,"" 200 935 290 50 1,000 345 410 50 Other bills discounted: June 24 1,689 687 144 158 183 140 114 July 1 1,563 657 144 158 183 44 114 July 8 1,564 653 144 158 183 44 114 July 15 1,561 652 144 158 183 43 114 July 22 1,607 652 144 208 183 114 Total bills discounted: June 24 5,134 365 2, 799 158 116 53 183 345 146 154 164 July 1 3,343 215 1,357 554 158 166 53 183 345 71 44 164 July 8 3,324 65 1,528 494 158 141 53 183 390 71 44 164 July 15 4,421 250 1,437 514 158 116 1,052 183 390 71 53 164 July 22 4,887 200 1,587 434 258 66 1,052 183 390 52 468 164 Industrial advances: June 24 10,596 1,170 1,046 5,266 238 618 990 309 606 210 76 July 1 10,550 1,171 1,046 5,396 228 617 993 309 441 209 76 July 8 10,598 1,171 1,046 5,385 251 592 1,065 285 455 208 76 July 15 10,884 1,168 1,046 5,367 293 767 1,107 318 470 208 76 July 22 10,985 1,164 1,046 5,419 310 837 1,107 277 503 50 U. S. Government securities, direct and guaranteed: Bonds: June 24 1,612,381 119,971 446,265 128,156 164,030 95,587 68,816 198,412 75,325 47,899 67,533 61,912 138,475 July 1 1,619,681 114,442 446,854 116,827 148,379 101,033 70,439 213,336 82,286 41,901 69,891 62,757 151,536 July 8 1,638,820 116,035 453,420 119,274 150,960 101,312 71,149 213,973 82,744 42,885 71,224 63,473 152,371 July 15 1,640,296 116,291 454,627 120,040 151,611 100,834 71,138 212,996 82,498 43,227 71,606 63,514 151,914 July 22 1,642,836 116,487 455,416 120,297 151,900 100,929 71,240 213,200 82,594 43,326 71,750 63,610 152,087 Notes: June 24... 716,77. 53,334 198,386 56,969 72,920 42,491 30,591 88,201 33,485 21,294 30,022 27,524 61,558 July 1 717,27. 50,681 197,889 51,737 65,709 44,742 31,194 94,477 36,440 18,554 30,951 27,793 67,108 July 8 717,27. 50,787 198,452 52,202 66,072 44,341 31,141 93,651 36,215 18,769 31,175 27,781 66,689 July 15.... 724,47. 51,363 200,796 53,021 66,960 44,537 31,421 94,073 36,439 19,091 31,626 28,051 67,097 July 22.... 724,47. 51,369 200,835 53,050 66,985 44,510 31,417 94,020 36,422 19,106 31,641 28,051 67,069 Certificates: June 24 34,102 2,537 9,439 2,711 3,469 2,022 1,456 4,196 1,593 1,013 1,428 1,309 2,929 July 1 72,752 5,140 20,072 5,248 6,665 4,538 3,164 9,582 3,696 1,882 3,139 2,819 6,807 July 8 102,252 7,240 28,291 7,442 9,419 6,321 4,439 13,350 5,163 2,676 4,444 3,960 9,507 July 15 178,231 12,636 49,399 13,043 16,474 10,956 7,730 23,144 8,964 4,697 7,780 6,901 16,507 July 22 195,731 13,879 54,259 14,332 18,098 12,025 25,401 9,840 5,162 8,548 7,579 18,120 Bills: June 24 219,475 16,330 60,745 17,444 22,328 13,011 9,367 27,008 10,253 6,520 9,193 8,427 18,849 July 1 318,730 22,520 87,934 22,990 29,199 19,882 13,861 41,982 16,193 8,246 13,753 12,350 29,820 July 8 450,327 31,885 124,594 32,775 41,482 27,839 19,551 58,797 22,737 11,784 19,572 17,442 41,869 July 15 494,549 34,730 135,776 35,950 45,279 30,114 21,245 63,612 28,620 12,910 21,385 19,558 45,370 July 22 483,647 34,294 134,073 35,415 44,719 29,713 20,973 62,766 24,315 12,755 21,123 18,727 44,774 8io FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Reserve Banks—Continued [In thousands of dollars] New Phila- Cleve- Rich- St. Minne- Kansas San Total Boston York delphia land mond Atlanta Chicago Louis apolis City Dallas Francisco A ss ets—Con tinued U. S. Government securities, direct and guaranteed: June 24 2,582,733 192,172 714,835 205,280 262,747 153,111 110,230 317,817 120,656 76,726 108,176 99,172 221,811 July 1 ,.„..„„. 2,728,438 192,783 752,749 196,802 249,952 170,195 118,658 359,377 138,615 70,583 117,734 105,719 255,271 July 8 ,.„.. 2,908,674 205,947 804,757 211,693 267,933 179,813 126,280 379,771 146,859 76,114 126,415 112,656 270,436 July 15 ,....„..„ 3,037,551 215,020 840,598 222,054 280,324 186,441 131,534 393,825 156,521 79,925 132,397 118,024 280,888 July 22 3,046,689 216,029 844,583 223,094 281,702 187,177 132,118 395,387 153,171 80,349 133,062 117,967 282,050 Total bills and securities: June 24 2,598,463 193,707 718,469 211,345 263,143 153,845 111,273 318,309 121,009 77,395 108,381 99,536 222,051 July 1 2,742,331 194,169 755,152 202,752 250,338 170,978 119,704 359,869 138,968 71,05! 117,861 105,972 255,511 July8 2,922,596 207,183 807,331 217,572 268,342 180,546 127,398 380,239 147,257 76,602 126,542 112,908 270,676 July 15 3,052,856 216,438 843,081 227,935 280,775 187,324 133,693 394,326 156,919 80,428 132,524 118,285 281,128 July 22 3,062,561 217,393 847,216 228,947 282,270 188,080 134,277 395,847 153,569 80,885 133,170 118,643 282,264 Due from foreign banks: June 24 July 1 July 8 July 15 July 22 Federal Reserve notes of other banks: June 24 25,849 585 2,918 2,036 2,197 2,763 3,541 2,515 1,552 1,902 813 3,285 July 1 25,832 880 2,674 1,894 1,498 2,650 3,394 2,188 1,905 2,296 717 4,168 July 8 29,342 692 3,364 1,847 1,927 3,283 3,887 2,709 1,611 3,221 988 4,189 July 15 31,536 1,017 3,861 1,511 2,573 3,703 3,854 2,633 2,613 3,165 1,133 3,583 July 22 27,330 905 2,966 1,856 2,337 2,928 3,139 2,432 2,721 2,616 854 2,843 Uncollected items: June 24 1,095,926 113,491 250,763 79,092 133,691 87,035 43,481 157,841 44,420 25,278 43,121 35,743 81,970 July 1 1,145,248 125,313 263,061 78,772 156,192 89,581 45,962 161,422 47,746 24,622 50,232 35,472 66,873 July 8 1,104,961 124,257 248,344 78,355 122,702 88,539 49,435 157,127 54,131 28,115 43,476 36,863 73,617 July 15 1,341,708 142,771 304,305 88,201 174,405 101,133 54,919 201,905 60,742 30,357 50,565 39,943 92,462 July 22 1,084,672 121,971 243,102 71,943 127,901 84,864 49,783 140,667 46,455 25,779 49,369 40,003 82,835 Bank premises: June 24 40,483 2,754 10,415 4,802 4,383 3,074 1,960 2,957 2,135 1,326 2,843 1,105 2,729 July 1 40,425 2,750 10,397 4,802 4,383 3,066 1,957 2,950 2,132 1,324 2,837 1,098 2,729 July 8 40,447 2,750 10,397 4,802 4,383 3,066 1,957 2,972 2,132 1,324 2,837 1,098 2,729 July 15 40,446 2,750 10,397 4,802 4,382 3,066 1,957 2,972 2,132 1,324 2,837 1,098 2,729 July 22 40,477 2,750 10,397 4,837 4,373 3,072 1,956 2,972 2,132 1,324 2,837 1,098 2,729 Other assets: June 24... 40,732 2,691 11,090 3,141 4,665 2,575 1,660 4,677 1,723 1,277 1,662 1,521 4,050 July 1.... 42,638 2,745 11,445 3,063 4,496 2,773 1,770 5,224 1,967 1,181 1,852 1,597 4,525 July 8.... 43,485 2,747 11,836 3,182 4,548 2,831 1, 5,244 1,984 1,152 1,920 1,603 4,630 July 15... 44,781 3,010 12,157 3,233 4,591 2,849 1,926 5,431 2,027 1,204 1,930 1,711 4,712 July 22... 45,302 2,894 12,248 3,321 4,651 2,938 1,885 5,553 2,076 1,234 1,953 1,747 4,802 Total assets: June 24... 24,654,5211,508,145 8, •,252 1,,558,5812,129,369 1,111,023 785,222 4,056i,,215 835,603 494,710 768,783 552,7062,114,912 July 1.... 24,821,4371,478,296 8,854,7571,550,8712,109,6281,143,655 818 089,334 848,549 501,861 787,900 573,7562,064,487 July 8.... 24,966,4281,514,326 8,780,773366 '1,581,7972,082,8051,178,862 822,446 4;115,037 858,989 511,751 795,906 589,2372,134,536 July 15... 25,345,3951,551,610 8,666,7111,606,608 2V82,001 1,207,279 885 192,285 880,573 525,969 826,605 591,5302,228,905 July 22... 25,092,4821,508,127 8;,769,124 1.,5731,,386 21,116,474 1,.158,234 835,449 4;150,423 862,889 514,613 813,779 597,1872,192,797 Liabilities Federal Reserve notes in actual circulation: June 24 «... 9,253,669 706,678 2,,316,849 662,918 886,765 501,859 350,084 1,917,649 361,562 230,634 301,552 157,043 860,076 July 1 9,409,142 702, ,356,026 670,411 897,095 515,865 366,071 1',937,995 371,024 232,975 309,257 165,503 884,757 July 8 ,.„.„.. 9,479,922 711, ,360,153 674,743 906,813 522,154 367,5351,952,178 373,375 234,689 312,762 167,157 896,507 July 15 9,507,771 713,1912,360,501 678,687 910,348 522,452 366,8091,962,190 374,287 235,017 313,845 165,390 905,054 July 22 .-... 9,563,231 7118,2,0"'6 2',,364,896 679,567 916,334 528,637 365,234 1,970,990 375,294 235,756 317,177 166,775 924,365 Deposits: Member bank—reserve account: June 24 12,523,343 630,056 5,292,125 687,981 936,261 468,202 349,379 1,812,837 371,858 194,698 386,845 322,7121,070,389 July 1 12,191,553 573, ,209,290 673,848 880,275 467,852 356,564 1,779,126 363,142 182,610 382,024 326,770 996,515 July 8 -.....„... 12,246,368 600, ,097,794 691,551 871,444 496,722 353,8171,820,896 353,811 196,033 388,418 329,6171,045,600 July 15 12,041,702 583,909 4,987,853 666,291 867,904 466,784 364,6951,832,766 357,256 182,154 383,592 322,2611,026,237 July 22 12,551,313 615,0915,232,292 689,835 913,573 476,371 370,4021,868,235 368,828 195,383 402,629 346,9381,071,736 * Less than $500 AUGUST 1941 811 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 ew rk d P e h lp il h a i - a C l l a e n v d e- R m i o c n h d - \tlanta Jhicago Lo S u t. i . s M ap in o n li e s - K C an it s y as Dallas F c S i r s a a c n n o - Liabilities—Continued U. S. Treasurer—general account: June 24 138,585 13,761 42,039 4,907 8,581 5,018 3,506 23,251 12,839 10,200 4,686 3,553 6,244 July 1 485,364 35,331 140,396 26,945 47,529 23,497 16,482 79,338 23,409 31,086 18,557 16,866 25,928 July 8 547,783 39,511 207,572 32,223 43,833 24,188 20,479 55,869 33,955 24,600 16,855 25,559 23,139 July 15 ,..,..,..,. 945,965 85,844 183,403 71,175 99,297 73,974 68,313 79,308 45,599 49,222 44,247 30,612 114,971 July 22 ,.„..,..,. 298,331 23,004 53,745 24,226 20,840 23,892 17,243 30,133 27,443 26,930 11,065 15,230 24,580 Foreign: June 24...,....., 965,028 23,847 504,831 72,839 69,804 33,384 26,556 92,566 22,762 16,692 22,003 22,003 57,741 July 1 886,029 23,680 471,070 65,314 62,592 29,936 23,812 83,003 20,411 14,968 19,730 19,730 51,783 July 8 „ 872,227 26,568 464,336 63,642 60,991 29,169 23,203 80,879 19,888 14,585 19,225 19,225 50,516 July 15 870,645 22,101 467,635 63,581 60,931 29,141 23,180 80,800 19,869 14,571 19,207 19,207 50,422 July 22 886,555 23,945 473,930 64,875 62,172 29,735 23,653 82,446 20,274 14,867 19,598 19,598 51,462 Other deposits: June 24 ..„..,..,. 393,182 9,918 234,547 8,76: 71,152 7,080 3,526 4,716 11,383 12,101 1,761 2,438 25,798 July 1 „. 455,401 14,705 317,224 7,004 45,790 6,627 3,836 3,406 12,969 10,136 4,639 1,710 27,355 July 8 481,156 14,647 327,403 10,559 54,759 7,241 3,046 2,986 12,795 9,865 3,270 1,879 32,706 July 15 430,868 11,600 272,063 9,026 62,509 7,101 2,925 4,601 13,851 9,870 2,825 1,848 32,649 July 22 460,139 14,547 315,243 9,107 49,494 7,239 2,701 3,072 14,108 10,39: 4,049 1,101 29,086 Total deposits: June 24 .4,020,138 677,582 i,073,542 774,489 ,085,798 513,684 382,9671,933,370 418,842 233,691 415,295 350,706 ,160,172 July 1 .4,018,347 647,253 .,137,980 773,111 ,036,186 527,912 400,6941,944,873 419,931 238,800 424,950 365,076 ,101,581 July 8 .4,147,534 681,391 .,097,105 797,975 ,031,027 557,320 400,5451,960,630 420,449 245,083 427,768 376,280 ,151,961 July 15 .4,289,180 703,454 1,910,954 810,073 ,090,641 577,000 459,1131,997,475 436,575 255,8r 449,871 373,928 ,224,279 July 22 .4,196,338 676,5876,075,210 788,043 ,046,079 537,237 413,9991,983,886 430,653 247,57: 437,341 382,867 ,176,864 Deferred availability items June 24 996,79C 97,430 216,311 86,160 121,246 78,709 38,044 155,718 43,064 20,392 40,212 33,060 66,444 July 1 1,014,35 102,693 229,845 72,629 141,252 83,355 37,533 157,486 45,610 20,192 42,065 31,468 50,223 July 8 958,594 94,839 192,327 74,350 109,784 82,818 40,251 153,115 53,139 22,065 43,760 34,064 58,082 July 15 1,167,690 108,633 263,876 83,134 145,821 91,229 45,287 183,515 57,699 25,234 51,234 40,455 71,573 July 22 951,41 86,782 197,608 71,or 118,815 75,716 42,055 146,345 44,895 21,356 47,544 35,746 63,537 Other liabilities, including accrued dividends: June 24 6,322 632 1,879 439 626 440 304 743 204 18 212 279 383 July 1 1,87' 389 197 135 165 248 143 208 57 75 11 92 53 July 8 2,440 435 386 14: 244 283 163 303 69 97 105 11' 96 July 15 2,684 520 533 14C 236 275 155 258 8 84 180 134 88 July 22... ,..„„.„.., 3,084 72: 485 151 268 296 178 336 77 102 207 157 102 Total liabilities: June 24 .„ 24,276,91' 1,482,32:8,608,58 1,524,0062,094,43!1,094,692 771,399 4,.0 0,7480823,672 484,89? 757,27 541,088 2,087,075 July 1 24,443,7161,452,49?8,724,04*1,516,2862,074,6981,127,380 804,44:4,040,562 836,622 492,042 776,386 562,139 2,036,614 July 8 24,588,4901,488,5218,649,971l,547,21f 2,047,8681,162,575 808,494 44,;0 06666,i226 847,032 501,93- 784,39! 577,6ir 2,106,646 July 15 24,967,3251,525,7988,535,8641,572,00334 22,147,0461,190,956 871, ,143,438 868,642 516,15: 815,130 579,90' 2,200,994 July 22 24,714,0691,482,296 81,,638,2031,538,771 2,081,4961,141,886 821,466 4,,101,55" 850,919 504,786 802,269 585,54^ 2,164,868 Capital accounts Capital paid in: June 24 , 144,743 9,43C 53,436 11,791 14,808 5,819 4,970 15,918 4,482 3,059 4,666 4,43, 11,929 July 1 144,884 9,430 53,442 11,78! 14,811 5,819 5,068 15,92f 4,484 3,059 4,671 4,43< 11,959 July 8 144,987 9,438 53,447 11,785 14,81, 5,823 5,11 15,93! 4,489 3,06C 4,674 4,436 11,963 July 15 145,064 9,440 53,468 11,786 14,828 5,827 5,115 15,962 4,493 3,062 4,677 4,438 11,968 July 22 145,100 9.44C 53,465 11,782 14,835 5,829 5,13C 15,963 4,494 3,065 4,68! 4,444 11,968 Surplus (section 7) June 24 157,50 10,949 56,65 15,17: 14,346 5,236 5,725 22,92. 4,966 3,15: 3,61. 3,97i 10,792 July 1 157,50 10,949 56,65 15,17: 14,346 5,236 5,725 22,92! 4,966 3,15: 3,61. 3,97< 10,792 July 8 157,50 10,94! 56,65 15,17: 14,346 5,23i 5,725 22,92! 4,966 3,15: 3,61. 3,97< 10,792 July 15 157,50 10,94! 56,65 15,17: 14,346 5,23i 5,725 22,925 4,966 3,15: 3,61. 3,97( 10,792 July 22 157,50: 10,94! 56,65 15,17: 14,346 5,236 5,725 22,925 4,966 3,15: 3,613 3,97< 10,792 Surplus (section 13b) June 24 26,78: 2,87' 7,071 4,39; 1,00' 3,244 1,429 l,00C 1,13 1,263 2,121 July 1 26,78: 2,87- 7,O7i 4,39; 1,00' 3,244 1,429 1,000 1,13' 1,263 2,121 July 8 26,78 2,87- 7,O7( 4,39; 1,00' 3,244 1,429 1,000 1,13 1,262 2,121 July 15 26,78 2,87- 7,O7( 4,39; 1,00; 3,244 1,429 l,00C 1,13 1,263 2,121 July 22 26,78: 2,87' 7,O7( 4,39. 1,00; 3,244 1,429 l,00C 1,13 1,263 2,121 Other capital accounts: June 24 48,57 2,57( 13,514 3,220 4,77; 2,03: 2,41 8,46- 1,95; 2,601 2,096 1,944 2,995 July 1 48,55- 2,545 13,546 3,236 4,767 1,976 2,396 8,491 1,94! 2,608 2,093 1,942 3,001 July 8 48,661 2,544 13,597 3,238 4,7ft 1,984 2,399 8,51 1,97: 2,605 2, 1,944 3,014 July 15 48,72, 2,549 13,65? 3,224 4,774 2,0t 2,402 8,53: 1,942 2,60- 2,04? 1,946 3,030 July 22 49,031 2,56$ 13,73! 3,26: 4.79C 2,035 2,41. 8,54! 1.98C 2,61( 2,07 1,959 3,048 Total liabilities and capital accounts: June 24 24,654,52 ,508,14 8,739,25: 1,558,58: 2,129,36< 111,022 785,22: 4,056,21. 835,60; 494,71( 768,783 552,706 2,114,912 July 1 24,821,43 ,478,2299(6 88,,854,757 1,550,87! 2,109,62* 143,65! 818,34; 4,089,334 848,54! 501,86] 787,900 573,756 2,064,487 July 8 24,966,42) ,514,321 8,780,736 1,581,7972,082,80! 178,86: 822,44< 4,115,037 858,98! 511,751 795,906 589,237 2,134,536 July 15 25,345,39. ,551,611 8,666,7111,606,6082,182,00: 207,279 885,31< 4,192,285 880,57; 525,969 826,605 591.53C 2,228,905 July 22 25,092,48: ,508,12! 8,769,12' 1,573,3862,116,47< 158,234 835,44! 4,150,423 862,88! 514,61 813,77' 597,181 2,192,797 Commitments to make industrial advances: June 24 16,83! 75( 455 i,oo: 2,063 2,10: 2,028 3,32' 3,656 J J J J u u u u l l l l y y y y 8 2 1 1 2 5...... 1 1 1 1 7 7 7 7 , , , , 1 1 1 7 0 0 3 0 1 7 7 7 7 5 5 5 5 6 6 4 6 4 4 4 44 4 4 4 C 2 8 8 1 1 1 1 , , , , 6 4 3 5 0 8 7 1 5 4 6 8 1 1 1 1 , , , , 4 9 8 4 7 6 7 7 ( : 2 2 2 2, , , , 1 0 1 1 0 9 0 0 C 5 1 : 2 2 2 2 , , , , 1 2 1 1 1 8 9 9 , ' 3 3 3 3 , , , , 3 3 3 3 2 2 2 2 ^ ^ : ' 3 3 3 3 , , , , 9 6 9 9 1 5 4 2 7 5 8 8 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDUSTRIAL ADVANCES BY FEDERAL RESERVE BANKS [Amounts in thousands of dollars] Applications Applications under Applications Repaid, received consideration approved Advances Commit- Approved expired, Partici- Date (last Wednesday of out- ments out- but not or with- pations each month) standing1 standing completed2 drawn by out- Number Amount Number Amount Number Amount (amount) (amount) (amount) app e l t i c c . ant, ( s a ta m n o d u in n g t) 3 (amount) 1934—Dec. 26.... 4,386 146,972 71 2,955 984 49,634 13,589 8,225 20,966 5,558 1,296 1935—June 26.... 6,325 237,581 68 11,349 1,646 88,778 27,518 20,579 11,248 24,900 4,533 Dec. 314... 7,437 293,084 28 2,823 1,993 124,493 32,493 27,649 11,548 44,025 8,778 1936—June 24... 8,006 314,471 12 1,880 2,183 133,343 30,484 24,454 9,381 61,425 7,599 Dec. 30.... 8,247 328,998 5 1,245 2,280 139,829 25,526 20,959 8,226 77,910 7,208 1937—Mar. 31.... 8,344 333,300 9 1,322 2,323 141,545 23,059 18,611 7,898 85,210 6,767 June 30.... 8,430 339,509 10 1,263 2,361 145,758 23,019 16,331 1,470 97,663 7,275 U* Sept. 29... 8,474 341,842 1 800 2,381 146,724 21,415 14,880 537 102,588 7,304 Dec. 29.... 8,534 350,551 7 550 2,406 150,987 20,216 12,780 3,369 107,384 7,238 1938—Mar. 30... 8,708 358,936 19 1,299 2,464 154,918 19,371 13,110 3,419 111,193 7,825 June 29... 8,976 369,853 8 476 2,566 161,158 18,444 13,649 3,084 117,555 8,426 Sept. 28... 9,102 378,974 8 146 2,617 168,380 17,567 13,597 5,737 122,447 9,032 Dec. 28.... 9,188 387,490 5 247 2,653 175,013 17,345 14,161 1,946 128,839 12,722 1939—Mar. 29... 9,249 392,230 14 344 2,683 177,895 15,798 12,647 1,975 135,004 12,471 June 28.... 9,308 395,499 5 255 2,721 179,778 15,255 11,175 2,067 139,281 12,000 Sept. 27... 9,366 402,305 2 370 2,752 185,234 14,454 10,517 1,938 146,156 12,169 Dec. 27.... 9,418 405,225 2 41 2,781 188,222 13,683 9,220 2,659 151,679 10,981 1940—Mar. 27... 9,476 410,192 7 199 2,814 192,665 12,723 8,224 2,471 158,110 11,137 June 26... 9,512 413,646 2 33 2,838 195,739 10,988 8,762 2,195 162,612 11,182 Sept. 25... 9,556 417,260 1 10 2,865 198,966 10,778 8,078 2,315 167,046 10,749 Dec. 314... 9,609 431,236 2 222 2,908 212,510 9,152 5,226 13,954 177,792 6,386 1941—Jan. 29.... 9,633 435,474 4 1,929 2,923 214,800 9,483 5,207 12,325 179,021 8,764 Feb. 26. .. 9,659 442,712 1 600 2,945 223,226 9,451 5,066 20,424 179,569 8,716 Mar. 26... 9,682 448,506 3 823 2,959 228,732 9,526 7,315 19,986 180,989 10,916 Apr. 30. .. 9,719 444,985 2 35 2,987 225,849 9,157 8,464 13,035 183,646 11,547 May 28... 9,793 455,868 5 1,725 3,046 234,714 9,639 12,342 14,134 186,062 12,537 June 25... 9,817 458,092 2 35 3,067 238,505 10,549 13,072 8,090 192,783 14,011 July 30.... 9,855 471,035 3 145 3,096 248,867 10,761 11,697 11,626 202,287 12,496 Aug. 27... 9,891 481,255 2 70 3,120 258,154 10,359 12,928 11,520 208,279 15,068 Sept. 24... 9,912 498,017 3 2,220 3,132 267,606 9,808 13,551 10,251 216,258 17,738 Oct. 29.... 9,950 504,144 1 5 3,161 274,739 10,612 13,238 12,317 219,598 18,974 Nov. 26... 9,974 506,320 3 375 3,179 276,499 10,836 14,735 9,774 221,421 19,733 Dec. 31.... 10,007 510,443 4 150 3,202 279,860 10,337 14,597 8,294 227,032 19,600 1942—Jan. 28.,.. 10,035 512,449 4 135 3,224 281,617 9,752 14,272 7,612 230,593 19,388 Feb. 25.... 10,056 525,432 1 600 3,241 292,905 9,227 14,921 15,751 233,082 19,924 Mar. 25.... 10,081 530,556 1 300 3,261 297,945 9,312 14,364 17,698 237,485 19,086 Apr. 29.... 10,129 546,600 4 424 3,300 313,660 10,699 11,673 18,473 250,105 22,710 ' May 27.... 10,171 558,821 2 400 3,337 325,507 11,464 14,378 22,480 253,801 23,384 June 24.... 10,191 572,411 3 600 3,352 338,822 11,265 16,832 26,346 257,949 26,430 uly 225... 10,218 578,234 2 850 3,374 343,708 11,659 17,139 22,079 267,121 25,710 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 guarantiesof'advances and commitments made by Federal Reserve Banks, which amounted to $1,309,000. July 22,1942. 4 Tuesday. 6 Latest date for which figures are available. FEDERAL RESERVE NOTES-FEDERAL RESERVE AGENTS' ACCOUNTS, BY WEEKS [In thousands of dollars] Total Boston Y N o e r w k d P e h lp il h a i - a C l l a e n v d e- m Ri o c n h d - Atlanta Chicago Lo S u t. is M ap in o n li e s - K C an it s y as Dallas F S ra a n n cisco Federal Reserve Notes: Issued to F.R. Banks by F.R. agents: June 24 ., 9,701,861732,435 2,425,865684,158 920,975 541,474 383,909 1,963,338 380,974 236,851 313,709 172,734 945,439 Julyl 9,824,376739,869 2,450,889988 695,022 930,267 547,523 391,188 1,982,508 394,287 238,684 317,928 179,202 957,000 July 8 , 9,916,387746,563 2,467,852699,438 939,219 556,193 394,680 2,000,154 4001;,243 239,932 324,049 182,065 965,999 July 15 9,988,398751,626 2,476,121705,611 946,895 561,432 396,334 2,012,57 404,727 240,771 325,857 183,660 982,787 10,058,338757,402 2,478,105 726,085 948,025 571,684 397,699 2,022,11 403,054 241,394 329,059 183,085 1,000,629 Held by Federal Reserve Bank: June 24 448,192 25,757 109,016 21,240 34,210 39,615 33,825 45,689 19,412 6,217 12,157 15,691 85,363 July 1 415,234 37,706 94,872 24,611 33,172 31,658 25,117 44,513 23,263 5,709 8,671 13,699 72,243 July 8 436,465 34,707 107,699 24,695 32,406 34,039 27,145 47,976 26,868 5,243 11,287 14,908 69,492 July 15 .. 480,62" 38,435 115,620 26,924 36,547 38,980 29,525 50,387 30,440 5,754 12,012 18,270 77,733 July 22 495,107 39,196 113,209 46,518 31,691 43,047 32,465 51,127 27,760 5,638 11,882 16,310 76,264 In actual circulation:1 June 24 9,253,669706,678 2,316,849 662,918 886,765 501,859 350,084 1,917,649 361,562 230,634 301,552 157,043 860,076 Julyl 9,409,142702,163 " 356,026 670,411 897,095 515,865 366,071 1,937,995371,024 232,975 309,257 165,503 884,757 July8 9,479,922711,856 2,360^153 674,743 906,813 522,154 367,535 1,952,178 337733,!375 234,689 312,762 167,157 896,507 July 15 9,507,771713,191 2,360,501678,687 910,348 522,452 366,809 1,962,190374,287 235,017 313,845 165,390 905,054 July 22 9,563,231718,206 2,364,896 679,567 916,334 528,637 365,234 1,970,990 ~37^52!94 235,756 317,177 166,775 924,365 Collateral held by agent as security for notes issued to bank: Gold certificates on hand and due from U. S. TrIeasury: une 24 ,. .=. „.... „.,9,808,000740,000 2,435,000690,000 930,000 550,000 395,000 1,980,000390,000 241,000 320,000 178,000 959,000 ulyl „....„.,..,.. 9,954,000750,000 2,465,000715,000 935,000 575,000 395,000 2,000,000 404,,000 241,000 320,000 185,000 969,000 uly 8 10,057,500760,000 2,475,000 715",000 945,000 575,000 415,000 2,020,000 410,,000 241,000 325,000 187,500 989,000 uly 15 10,119,500760,000 2,495,000 715,,000 950,000 575,000 415,000 2,020,000 420,000 241,000 330,000 189,500 1,009,000 uly 22 , 10,223,500770,000 2,495,000 740,000 950,000 600,000 415,000 2,040,000 420,000 245,000 330,000 189,500 1,029,000 JiligiDle paper: June 24 „ „. „. 1,502 365 655 50 300 30 102 July 1 1,472 215 720 410 100 27 July 8 ....„ ,.. 1,752 65 890 350 75 345 27 July 15 ,..,.. ,. 1,842 250 800 370 50 345 27 July 22 ..„....„. 1,594 950 290 345 9 Total collateral: June 24 ..„.,..,..... 9,809,502740,365 435,000 690,655 930,000 550,050 395,000 1,980,000 3900,,300 241,030 320,102 178,000 959,000 July 1 9,955,472750,215 465,720 15,410 935,000 575,100 395,000 2,000,000 4044,,000 241,000 320,027 185,000 969,000 Julys.:.' .„..„.„„.. 10,059,252760,065 475,890 15,350 945,000 575,075 415,000 2,020,000 410,345 241,000 325,027 187,500 989,000 July 15 ......,.„..,.10,121,342760,250 495,800715,370 950,000 575,050 415,000 2,020,000 420,345 241,000 330,027 189,500 1,009,000 July 22 „..„.„.,..„10,225,094 70,000 495,950740,290 950,000 600,000 415,000 2,040,000 420,345 245,000 330,009 189,500 1,029,000 1 Includes Federal Reserve notes held by U. S. Treasury or by a Federal Reserve Bank other than the issuing bank. Digitized foAr UFGRUASSTE R1 942. 813 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RESERVE POSITION OF MEMBER BANKS, JUNE, 1942 MEMBER BANK RESERVE BALANCES BY CLASSES OF BANK [Averages of daily figures. In millions of dollars] [Averages of daily figures. In millions of dollars] Reserves with Central reserve Gross Net Federal Reserve All city banks Re- Coun- Cl a a n ss d e s d i o s f t r b ic a t n s ks m d d a e e n - - d m d d a e e n - - d p T o d im s e i - t e s • Banks b m a b e n e m k r s - 1t New Chi- b s c a e i r n t v y k e s ba t n ry ks1 posits posits Re- Held Ex- York cago quired cess Total reserves held: All member banks 51,102 42,488 12,147 9,920 12,624 2,704 1941—June 13,201 5,958 1,144 4,184 1,914 Central reserve city banks: July 13,120 5,875 1,120 4,198 1,927 New York ,„. 17,196 16,380 742 4,303 4,859 556 August 13,004 5,600 1,140 4,287 1,978 Chicago „„.. 3,748 3,317 456 890 979 89 September 13,184 5,554 1,218 4,335 2,076 October 13,097 5,314 1,243 4,391 2,149 Reserve city banks: November 12,900 5,053 1,210 4,424 2,213 Boston district.... „ , 1,477 1,332 79 271 340 69 December 12,812 5,142 1,143 4,317 2,210 N Ph e i w la d Y e o lp rk h i d a i s d t i r s i t c ri t c .. t . m „. 1,7 3 7 0 3 8 1,5 2 1 6 7 0 1 1 4 4 1 2 31 6 2 0 47 6 7 9 16 9 6 1942— F J e a b n r u u a a ry ry 1 12 2 , , 9 9 0 3 8 6 5 5 , , 2 2 4 6 8 6 1 1 , , 0 0 8 8 5 6 4 4 , , 3 3 5 6 6 5 2 2, , 1 2 9 3 9 8 March 12,827 5,188 L, 157 4,279 2,204 Cleveland district ....... 2,617 2,161 675 473 710 238 April , 12,649 5,028 1,140 4,293 2,188 Richmond district 1,182 933 233 201 313 112 May 12,510 4,870 1,049 4,325 2,265 Atlanta district .. 1,131 820 170 174 212 38 June 12,624 4,859 979 4,448 2,338 Week ending (Friday): Chicago district .„ «. 2,249 1,724 702 387 523 136 1942— une 5. 12,556 4,874 978 4,391 2,313 St. Louis district.... .„.,. 1,245 974 167 205 275 70 une 12 12,657 4,832 948 4,541 2,336 Minneapolis district.. „.. 556 412 79 87 104 17 une 19 12,787 4,917 995 4,504 2,371 une 26 12,610 4,862 1,001 4,412 2,335 Kansas City district 1,446 971 148 203 279 76 uly 3 12,262 4,717 973 4,272 2,299 Dallas district...... 1,059 704 127 149 197 49 uly 10 12,261 4,568 980 4,363 2,349 San Francisco district ... 3,442 2,845 2,092 695 947 252 uly 17... 12,346 4,513 988 4,465 2,379 Excess reserves: Total 18,481 14,654 4,756 3,216 4,448 1,232 1941—June 5,351 2,238 424 1,820 870 July 5,193 2,150 388 1,789 866 August 5,017 1,898 403 1,824 892 Country banks: September 5,116 1,834 478 1,836 968 Boston district „.«. _ 1,321 1,029 548 177 271 94 October 5,001 1,626 512 1,845 1,017 New York district... „. „. 2,036 1,634 1,471 317 475 158 November 3,611 945 367 1,456 844 Philadelphia district 918 685 834 146 210 64 December 3,390 989 295 1,303 804 1942—January 3,446 1,083 225 1,330 809 Cleveland district 1,026 721 731 145 247 102 February 3,309 1,071 204 1,279 755 Richmond district... „.... 972 609 397 109 162 53 March 3,147 962 255 1,190 740 Atlanta district 890 559 258 94 142 48 April 2,951 795 262 L, 175 718 May 2,667 546 178 1,171 772 Chicago district...,..-. .... 1,442 979 853 188 301 113 June 2,704 556 89 L,232 827 St. Louis district.....-..... 629 410 255 73 107 35 Week ending (Friday): Minneapolis district...... 455 296 279 58 91 33 1942—une 5... 2,670 541 107 1,218 803 une 12. 2,740 529 67 1,320 824 Kansas City district.. „.. 646 379 156 62 105 43 iune 19. 2,870 627 105 1,278 860 Dallas district 798 493 99 75 121 46 June 26. 2,713 585 105 1,197 826 San Francisco district... 546 342 312 67 104 38 July 3.. *2,263 394 58 1,021 July 10. *>2,309 307 66 1,096 Total ..,.„.. 11,677 8,136 6,193 1,511 2,338 827 July 17.. 2*2,298 227 61 L.139 1 Gross demand deposits minus demand balances with domestic banks p Preliminary. (except private banks and American branches of foreign banks) and cash 1 Weekly figures of excess reserves of all member banks and of country items in process of collection. banks are estimates. NOTE.—See table on p. 808 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] Member banks in larger centers Member banks in smaller centers All member banks (places over 15,000) (places under 15,000) Federal Reserve district Gross demand Time Gross demand Time Gross demand Time June May June May June May June May June May June May Boston 2,797 2,758 626 623 2,632 2,597 508 506 165 161 118 118 New York 19,539 19,608 2,354 2,363 il,942 il,930 U,103 11,104 401 394 510 504 Philadelphia 2,690 2,664 976 979 2,347 2,327 531 534 344 337 445 446 Cleveland 3,643 3,533 1,406 1,407 3,263 3,162 1,060 1,064 380 372 346 343 Richmond 2,154 2,096 630 632 1,873 1,820 426 428 281 276 204 204 Atlanta . 2,020 1,999 427 427 1,811 1,791 342 342 209 208 85 84 Chicago 7,439 7,295 2,011 1,997 13,150 13,051 11,211 11,201 540 528 344 339 St. Louis 1,873 1,861 "423 423 1,499 1,495 299 299 3 374 366 123 124 Minneapolis . ... 1,011 956 358 355 793 745 190 188 218 211 168 166 Kansas City 2,091 2,035 304 303 1,656 1,605 197 196 435 429 107 107 Dallas 1,857 1,821 227 228 1,431 1,402 184 185 425 419 43 43 San Francisco ............ 3,988 3,861 2,404 2,381 3,821 3,701 2,299 2,277 167 160 105 104 Total . , . , . 51,102 50,487 12,147 12,118 126,219 125,624 18,350 Li8,324 3,940 3,862 2,599 2,583 1 Excluding central reserve city banks, for which figure for latest month are shown in table above. 814 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

KINDS OF MONEY IN CIRCULATION [Outside Treasury and Federal Reserve Banks. In millions of dollars] End of month Total c c e G r a t o t i e l f d s i- d S o i l l l v a e r r s c S c e a i r l t t v i e f e s i- r o T n f r u o e 1 r t 8 y a e 9 s s - 0 S s u i c a l b o v r s i y e i n r di- M co in in or U S n n o ta i t t t e e e s d s R F n e e o s d e t e e r r v s a e l F R n B e e o d a s t e n e e r k r s a v l e n t b i N o o a t n n a e a - k s l 1941—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 October... 10,364 62 57 1,715 1 463 205 317 7,378 20 146 November. 10,640 61 59 1,737 1 474 208 321 7,615 20 145 December. 11,160 61 60 1,733 1 481 209 313 8,138 19 144 1942—January... 11,175 61 61 1,657 1 471 206 302 8,253 19 143 February.. 11,485 61 61 1,695 1 475 206 309 8,514 19 143 March 11,566 60 62 1,697 1 482 208 307 8,587 19 142 April 11,767 60 64 1,707 1 488 209 309 8,769 19 141 May 12,074 60 65 1,745 1 496 211 316 9,022 19 140 June 12,383 59 66 1,754 1 504 213 317 9,310 19 139 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] End of month i T n o c ta ir l - Coin and small denomination currency2 Large denomination currency2 Unascula- sorted2 tion1 Total Coin $1« $2 $5 $10 $20 Total $50 $100 $500 $1,000 $5,000 $10,000 1941—May 9,357 6,683 669 615 40 1,176 2,211 1,972 2,675 587 1.218 242 546 24 57 2 June . .. 9,612 6,890 681 625 41 1,207 2,289 2,047 2,725 607 1,244 244 24 57 2 July 9,732 6,992 688 626 40 1,215 2,334 2,090 2,742 615 1,257 244 544 24 58 3 August 9,995 7,237 700 641 42 1,257 2,430 2,169 2,760 630 1,274 244 543 24 46 3 September.... 10,163 7,378 713 658 42 1,270 2,469 2,227 2,787 645 1,293 243 537 24 46 3 October 10,364 7,537 725 663 41 1,287 2,527 2,293 2,830 658 1,316 245 539 25 47 3 November 10,640 7,769 738 675 43 1,318 2,610 2,383 2,874 674 1,343 248 538 24 47 4 December 11,160 8,120 751 695 44 1,355 2,731 2,545 3,044 724 1,433 261 556 24 46 4 1942—January 11,175 8,053 738 656 42 1,309 2,713 2,595 3,126 745 1,481 265 566 24 46 4 February 11,485 8,326 743 668 42 1,344 2,825 2,704 3,163 767 1,511 266 565 21 33 4 March 11,566 8,396 752 673 42 1,351 2,834 2,744 3,174 779 L,528 268 561 9 29 5 April 11,767 1 8,560 757 680 43 1,362 2,898 2,820 3,204 792 1,549 268 558 9 29 1 May 12,074 8,841 771 696 44 1,402 3,004 2,924 3,235 801 1,566 260 570 9 28 1 June 12,383 9,083 783 704 45 1,427 3,099 3,024 3,301 824 L,602 262 576 8 29 2 1 Total of amounts of coin and paper currency shown by denominations less unassorted currency in Treasury and Federal Reserve Banks. 2 Includes unassorted currency held,1 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 1937j(table 36). TREASURY CURRENCY OUTSTANDING SHIPMENTS AND RECEIPTS OF UNITED STATES PAPER [Held by Treasury and Federal Reserve Banks and in circulation, In CURRENCY millions of dollars] [By selected banks and financial institutions in New York City. In millions of dollars ] End of month Total d S s l o b i a i i l l l u o n v l v n a l d e e - r 1 r r s s S s c a i i l u o r d v y b i i e n - - r M co in in or U S n n t o a i t t t e e e s d s B n F s e R e o e a r r t e d n a v e - - l k e s t n b i N o o a n t a n e - a k s l 1937.... Year or month m E e S u n h 2 r t o 1 i s p p . 5 - t e o R E e f 4 u r c 7 o r e o . m i 6 p p t e s m s N h e i e n p t t - s re 2 c N 6 e e i .1 p t ts 1938.... 33.1 34.4 1.3 1941—May 3,134 1,977 440 196 347 21 153 1939.... 110.2 9.8 100.3 June 3,149 1,983 447 199 347 21 152 1940.... 17.7 .7 17.0 July 3,166 1,991 455 202 347 20 151 1941.... .3 .2 August 3,181 1,998 462 204 347 20 150 8 September. 3,198 2,006 469 207 347 20 149 1941—July October.... 3,219 2,013 482 210 347 20 148 August November 3,231 2,017 489 212 347 20 146 September.. December .. 3,247 2,023 497 215 347 20 146 October.... (?) (?) November.. 1942—January 3,259 2,029 501 218 347 20 144 December... .2 February... 3,268 2,033 505 220 347 20 144 March 3,277 2,038 509 221 347 19 143 1942—January.., April 3,289 2,044 514 222 347 19 142 February. May 3,305 2,050 524 224 347 19 141 March June 3,313 2,053 530 225 347 19 140 April May June 1 Includes silver held against silver certificates amounting to $1,970,- 000,000 on June 30,1942 and $1,914,000,000 on June 30, 1941. i Less than $50,000. Back figures.—See Annual Report for 1937 (table 3S). Description.—See BULLETIN for January 1932, pp. 7-8. 815 AUGUST 1941 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANALYSIS OF CHANGES IN GOLD STOCK OF MOVEMENT OF GOLD TO AND FROM UNITED STATESi UNITED STATES [In thousands of dollars] [In millions of dollars] 1941 Ear- Period of a s G t t p o o e e c r l n k d i d od I i n n s c t o r g e c o a k ld se N im et p g o o r l t d c g r m o e o c a l r r a d s e r e : i a k n s d ( e — e - d e- ) p D ti r t c o o i o m d g n u o e 1 c l s d - - From or to— p Im or - t N s ov p .2 o E r x ts - 3 p I o m rt - O s ct. p E o x rt - s3 p J I o a m n rt - . s -No p v E o . r x ts - , * 1 1 1 1 1 1 1 1 9 9 9 9 9 9 9 9 4 3 3 4 3 3 3 3 1 8 9 0 5 6 7 4 . 2 . . 3 „ 3 1 1 2 2 1 1 1 2 1 8 2 1 4 7 0 , , , , , , , , 2 7 7 2 9 5 6 1 5 6 3 9 3 1 4 2 8 0 7 5 8 2 4 5 4 3 4 1 1 1 1 , , , , , , , 3 2 1 5 7 8 1 7 5 0 3 0 5 8 3 4 1 2 2 2 1 7 2 1 . . . . . . . . 5 2 0 8 5 5 2 5 4 3 1 1 1 1 1 , , , , , , , 7 5 5 9 1 1 7 4 7 8 7 3 1 3 4 4 5 3 3 6 9 . . . . . . . 2 5 5 9 6 6 0 - - - - - 6 4 3 2 5 -8 4 0 3 0 3 8 5 4 7 3 0 4 2 . . . . . . . . 7 7 9 5 4 4 6 2 1 1 1 1 1 1 1 9 6 4 6 1 7 4 3 2 1 7 8 0 0 3 1 . . . . . . . . 7 9 8 7 6 2 9 6 F P M U U S C C w o r a e n . e a r n n i i x S n t t t t a i u z e . r c c d e d g a o e S a r a l . . l K . l a A . R n i m n d . g e . d r o ic m a 2 5 6 4 , , , 6 3 9 9 1 1 2 3 2 3 2 5 1 4 6 9 1 1 5 1 6 , , , 5 0 0 9 2 5 7 3 6 5 0 4 0 4 0 5 3 3 9 1 9 3 1 1 1 5 , , , , , , 9 7 6 4 5 7 3 8 8 4 1 5 2 1 7 9 7 7 6 9 6 4 8 9 1 West Indies and Ber- 1941—May 22,575 69.1 34.8 -3.8 12.7 muda 77 66 814 June 22,624 49.2 30.7 4.0 14.5 Argentina 18 10 177 July 22,675 50.5 37.0 -27.7 13.7 Bolivia 8 10 94 August 22,719 44.7 37.0 -31.2 12.5 Brazil 5 22 September... 22,761 41.5 65.7 -46.8 17.9 Chile 441 323 7,627 October 22,800 38.8 40.4 -32.2 15.8 Colombia 2,110 2,107 22,211 November.... 22,785 -14.4 -60.9 18.1 Ecuador 218 253 2,822 December 22,737 —48.8 -99.7 11.4 Peru 436 583 8,441 Venezuela ." 227 608 4,212 1942—January 22,747 10.6 -38.5 14.7 British Guiana 91 75 986 February 22,705 -42.4 -109.3 10.0 Australia 5,980 6,151 63,779 March 22,687 -17.3 -65.5 11.0 New Zealand 156 77 2,364 April 22,691 3.3 -20.1 11.1 British Oceania 314 652 3,583 May 22,714 23.6 -38.2 10.8 British India.... 2,327 8,954 June 22,737 22.3 5-14.8 Netherlands Indies 25 855 China and Hong Kong 3,697 Jan .-June 22,737 .1 5-286.4 ^66.5 Japan 9,444 Philippine Islands 1,832 3,143 37,178 p 1 A Pr n e n l u im al i n f a ig ry u . res are estimates of the United States Mint. Monthly A So ll u t o h th A er f r c ic o a untries 47 4 3 0 2 1 0 40 0 29 4 2 , 2 7 5 0 5 3 f p i i g n u e r e Is s l a a r n e d t s h p o r s o e d p u u c b ti l o is n h e r d ec i e n iv t e a d b l i e n o U n n p it a e g d e S 8 t 5 a 4 te , s a . djusted to exclude Philip- Total 50,382 8 40,444 3 929,545 63 2 Figures based on rate of $20.67 a fine ounce in January 1934 and $35 a fine ounce thereafter. 1 Figures represent customs valuations which, with some exceptions, 3 Includes gold in the Inactive Account amounting to 27 million dollars are at rate of $35 a fine ounce. on Dec. 31, 1936, and 1,228 million on Dec. 31, 1937. 2 Beginning December 4, 1941, the Department of Commerce suspended 4 Beginning December 4, 1941, the Department of Commerce suspended publication of gold import and export statistics. publication of gold import and export statistics. 3 Beginning May 1941, the Department of Commerce suspended publi- 5 Gold held under earmark at Federal Reserve Banks for foreign account cation of export statistics by country of destination. amounted to 2,501.7 million dollars on June 30,1942. NOTE.—For back figures for selected countries beginning in 1934, see NOTE.—For back figures through 1937, see Annual Report for 1937 table on p. 854. (table 29). BANK DEBITS BANK> SUSPENSIONS1 Debits to deposit accounts except interbank accounts Member Nonmember [In millions of dollars] Total, banks banks ba a n ll ks ti N on a- al State su I r n e - d2 in N su o r t ed Year and month r T e i o p a n t o l g a l r l t , - N Y C o e it w r y k ce o n 1 th t 4 e 0 e r r s1 r c e e o p n 1 t o h 3 t r e e 3 t r r in s2 g Number of banks suspended: centers 1934 57 1 8 48 1935 34 4 22 8 1929 982,531 603,089 331,938 47,504 1936 44 1 40 3 1936 461,889 208,936 219,670 33,283 1937 59 4 2 47 6 1937 469,463 197,836 235,206 36,421 1938 55 1 1 47 6 1938 405,929 168,778 204,745 32,406 1939 42 4 3 25 10 1939 423,932 171,382 218,298 34,252 1940 . . 22 1 18 3 1940 445,863 171,582 236,952 37,329 1941 g 4 3 1 1941.... 537,343 197,724 293,925 45,694 1942—Jan .-June 4 3 1 1941—May 43,661 16,124 23,808 3,729 Deposits of suspended banks June 45,937 17,282 24,866 3,789 (in thousands of dollars):3 July 44,804 16,288 24,673 3,843 1934 36,937 40 1,912 34,985 August 42,853 15,079 24,045 3,729 1935 10,015 5,313 3,763 939 September 43,866 15,654 24,322 3,890 1936 11 306 507 10 207 592 October... 50,869 19,148 27,329 4,392 1937 19,723 7,379 1,708 10,156 480 November. 45,076 16,077 25,087 3,912 1938 13,012 36 211 11,721 1,044 December. 56,582 20,598 31,133 4,850 1939 34,998 1,341 24,629 6,589 2,439 1942—January... 48,605 17,247 27,028 4,330 1940 5,943 256 5,341 346 February.. 41,545 14,242 23,543 3,760 1941 3,726 3,144 503 79 March 49,161 17,056 27,764 4,341 1942—Jan .-June 498 316 182 April 46,613 16,023 26,451 4,138 May 48,343 16,985 27,242 4,116 1 Represents banks which, during the periods shown, closed temporarily June 50,110 17,394 28,295 4,421 or permanently on account of financial difficulties; does not include banks whose deposit liabilities were assumed by other banks at the time of closing 1 National series, for which bank debit figures are available beginning (in some instances with the aid of Federal Deposit Insurance Corporation with 1919. loans). 2 Except that 1929 figure is for 128 centers only. J Federal deposit insurance became operative January 1,1934. Revised figures.—1941 and 1942 figures revised to reflect changes in number 3 Deposits of member banks and insured nonmember banks suspended are of reporting banks in 2 centers. as of dates of suspension, and deposits of noninsured nonmember banks Back figures.—Annual report for 1937, page 157. Annual totals, beginare based on the latest data available at the time the suspensions were ning with 1919, by Federal Reserve districts and for individual centers, are reported. available for distribution and will be furnished upon request. Back Mures—Set Annual Report for 1937 (table 76). 816 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ALL BANKS IN THE UNITED STATES Comprises all national banks in the continental United States and all State commercial banks, trust companies, mutual and stock savings banks and such private and industrial banks as are included in abstracts issued by State banking departments. Also includes, during the period June 1934-June 1935, private banks which, pursuant to the provisions of sec. 21 (a) of the Banking Act of 1933, submitted condition reports to the Comptroller of the Currency. Under the amended provision 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. DEPOSITS, EXCLUSIVE OF INTERBANK DEPOSITS1 NUMBER OFBANKS [In millions of dollars] Member banks2 Non b m an em ks ber Member banks2 Non b m an e k m s ber Call date Total Other Call date All Other Total ti N on a a - l State M s b a a u v n i t n u k g a s s l m n b o e e n m r - - banks Total ti N on a- al State M s b a a u v n t in u k g a s s l m n b e o e m n r - banks 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 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—June 29 14,953 6,398 5,164 1,234 551 8,004 1940—June 29 60,582 42,039 26,931 15,108 310,631 37,912 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 6,556 5,130 1,426 547 7,752 June 30 67,172 48,076 30,684 17,392 10,641 8,456 Sept. 24....... 14,852 6,596 5,125 1,471 546 7,710 Sept. 24 68,449 49,160 31,500 17,660 10,643 8,646 Dec. 31.«.«.«. 14,825 6,619 5.117 1,502 545 7,661 Dec. 31 70,792 51,192 32,672 18,520 10,525 9,075 1942—June 30P 6,647 5,101 1,546 1942—June 30*. For footnotes see table below. For footnotes seetable below. LOANS AND INVESTMENTS [In millions of dollars] All banks Member banks2 Nonmember banks Mutual savings banks Other nonmember banks Call date Total Loans Invest- Total Loans Investments ments Total Loans I m nv en es ts t- Total Loans I m nv en es ts t- 1929—June 29 58,474 41,531 16,943 35,711 25,658 10,052 9,556 5,892 3,664 13,207 9,981 3,227 Dec. 31 58,417 41,918 16,499 35,934 26,150 9,784 9,463 5,945 3,518 13,020 9,823 3,197 1933—June 30 40,076 22,203 17,872 24,786 12,858 11,928 10,044 5,941 4,103 5,246 3,404 1,841 Dec. 30 40,319 21,977 18,342 25,220 12,833 12,386 9,985 5,906 4,079 5,115 3,238 1,877 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. 314 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—June 29 51,335 22,341 28,995 34,451 13,969 20,482 310,188 4,926 5,262 36,696 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 40,659 16,729 23,930 10,314 4,955 5,360 6,972 3,628 3,344 Sept. 24 59,296 26,187 33,109 41,943 17,546 24,397 10,348 4,949 5,399 7,005 3,692 3,313 Dec. 31 - 61,098 26,616 34,483 43,521 18,021 25,500 10,372 4.903 5,470 7,205 3,692 3,513 1942—June 30P „. 46,804 16,944 29,860 p Preliminary. 1 Prior to December 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. 2 Includes, subsequent to April 4, 1941, two mutual savings banks in Wisconsin and one in Indiana. 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 Prior to December 1938 the figures include loans and investments indirectly representing bank premises or other real estate, now reported separately in condition reports. The amounts of such loans and investments in December 1938, were approximately $50,000,000 and $100,000,000, respectively. NOTE.—Beginning with the April 4, 1942 call, spring and fall figures are not being compiled for "All banks." April 4, 1942 figures for member bank^ are shown on the following pages. Back figures.—See Annual Report for 1937 (tables 48-49). AUGUST 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] Loans1 Investments1 Loans for U. S. Government obligations purchasing Obli- Total or carrying gations loans Com- securities Direct of Call date and mer- Agri- Open States i m nv e e n s t t s - Total1 i t n a r c d i n i a u a d l l s 2 - cul- p m a k a p e r t e - r b d a T e r e n o r o a s d k l- - o e T t r o h s - 3 e l R s o t a e a n a te s l ba t n o ks l O o t a h n e s r 4 Total Total Bills5 Notes Bonds teed p s d s a o i u c i o n l v b a i n d - i l t s - i- O s ri e t t c h ie u e s - r ers Total—All Member Banks 1929—Dec. 31.... 35,934 26,150 583 2,463 ,685 3,191 714 11,515 9,784 3,863 249 520 3,094 1,393 4,528 1933—June 30.... 24,786 12,858 595 953 3,752 2,372 330 4,857 11,928 6,887 ,113 1,049 3,725 1,744 3,297 1939—Dec. 30.... 33,941 13,962 5,386 730 455 790 700 2,957 56 2,888 19,979 .4,328 563 ,223 8,398 3,144 2,692 2,959 1940—June 29.... 34,451 13,969 5,538 736 450 447 668 3,069 42 3,020 20,482 .4,722 797 ,543 8,261 3,121 2,888 2,873 Dec. 31.... 37,126 15,321 6,204 865 456 642 652 3,228 43 3,230 21,805 5,823 652 ,594 9,091 3,486 3,013 2,970 1941—Apr. 46.... 38,983 15,878 23,104 .6,988 3,487 3,206 2,911 June 30.... 40,659 16,729 7,270 738 537 575 635 3,365 44 3,565 23,930 .8,078 ,127 2,631 10,481 3,839 2,984 2,867 Sept. 246 .. 41,943 17,546 24,397 .8,338 4,243 3,161 2,899 Dec. 31.... 43,521 18,021 8,064 972 607 594 598 3,494 39 3,653 25,500 19,539 971 3,007 1^729 3,832 3,090 2,871 1942—Apr. 46.... 44,287 17,834 !6,453 20,449 3,471 3,173 2,831 JuneSOP... 46,804 16,944 29,860 24,086 2,934 2,840 New York City7 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 1939—Dec. 30.... 9,339 3,296 1,768 120 611 188 133 44 425 6,043 4,772 797 2,385 ,275 579 693 1940—June 29.... 9,829 3,014 1,801 103 320 188 137 32 426 6,815 5,486 1,092 2,650 ,324 634 695 Dec. 31.... 10,910 3,384 2,025 100 465 190 130 25 443 7,527 6,044 1,245 2,977 ,615 695 788 1941-Apr. 46.... 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 7,268 577 1,526 3,415 ,751 651 796 Sept. 246 .. 12,930 3,939 8,991 7,331 ,920 819 841 Dec. 31.... 12,896 4,072 2,716 91 412 169 123 32 522 8,823 7,265 311 1,623 3,652 1,679 729 830 1942—Apr. 46.... 13,123 4,173 8,950 7,381 1,515 773 796 June 3QP... 14,018 4,065 9,953 8,550 623 781 ' Ch M ica y g 0f o 71 1929—Dec. 31..... 1,757 1,448 251 533 535 309 116 19 94 96 96 1933—June 30.... 1,287 677 61 251 30 237 610 384 82 97 87 138 1939—Dec. 30.... 2,105 569 365 41 66 60 1,536 1,203 176 701 172 162 170 1940—June 29.... 2,205 603 417 23 61 62 1,602 1,258 161 710 134 177 167 Dec. 31... 2,377 696 476 42 54 84 1,681 1,307 145 752 112 188 186 1941—Apr. 46.... 2,649 780 1,869 1,466 125 226 177 June 30.... 2,707 846 609 21 36 55 20 101 1,861 1,483 417 125 803 138 190 188 Sept. 246.. 2,573 918 1,655 1,304 159 175 176 Dec. 31.... 2,760 954 711 21 48 52 22 95 1,806 1,430 256 153 903 119 182 193 1942—Apr. 46.... 2,806 923 1,883 1,490 108 207 187 June3(R.. 3,116 906 2,210 1,858 164 188 Reserve City Banks 1929—Dec. 31.... 12,029 9,084 168 664 2,775 1,538 258 3,679 2,944 1,368 165 1,112 448 1,128 1933—June 30.... 8,492 4,482 126 108 1,340 1,131 99 1,678 4,011 2,483 681 1,597 598 930 1939—Dec. 30.... 12,272 5,329 2,100 221 155 119 222 1,335 9 1,168 6,943 5,194 819 3,339 972 890 860 1940—June 29.... 12,160 5,365 X134 176 156 87 210 1,372 6 1,224 6,795 4,947 839 3,052 969 981 868 Dec. 31... 13,013 5,931 2,436 263 153 115 207 1,436 15 1,307 7,081 5,204 771 3,281 1,049 984 893 1941—Apr. 46.... 13,494 6,165 7,328 5,440 1,047 1,034 855 June 30.... 14,013 6,498 2,879 175 202 100 198 1,477 1,457 7,515 5,700 73 3,858 1,162 979 836 D Se e p c. t . 2 3 4 1. 6 . . .. . 1 15 4 , , 3 5 4 8 7 8 6 7 , , 8 1 6 0 1 5 3,206 300 250 iu 194 1,527 1,508 8 7, , 7 2 2 4 7 3 6 5, , 9 4 1 6 4 7 295 751 4,248 1 1, , 1 2 7 4 3 6 9 9 7 5 5 6 8 8 3 2 8 0 1942—Apr. 46.... 15,605 6,989 8,616 6,832 1,051 941 844 June30P... 16,531 6,557 9,973 8,189 926 859 Country Banks 1929—Dec. 31.... 13,375 8,936 201 291 2,231 1,462 4,705 4,439 1,267 171 999 627 2,546 1933—June 30.... 7,873 4,275 35 25 1.117 1,055 2,005 3,598 1,469 299 1,106 581 1,549 1939—Dec. 30.... 10,224 4,768 1,151 495 163 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 1,187 546 174 17 208 1,544 1,308 5,270 3,030 451 1,849 695 1,097 1,144 Dec. 31.... 10,826 5,309 1,267 590 187 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 60 374 2,404 788 1,165 1,047 D Se e p c. t . 3 2 1 46 . . . . . . 1 1 2 1 , ,8 5 5 1 2 8 5 5 , , 8 8 2 9 8 0 1,431 659 245 20 183 1,823 1,528 6 6 , , 6 0 2 2 8 4 4 3 , , 3 7 7 8 7 9 iio 481 2,926 9 8 1 6 9 1 1 1 , , 1 2 9 2 1 2 1 1 , , 0 0 4 2 4 8 1942—Apr. 46.... 12,753 5,749 7,004 4,746 797 1,253 1,005 13,139 5,416 7,723 5,488 1,222 1,012 p 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). 818 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CONDITION OF ALL MEMBER BANKS—RESERVES AND LIABILITIES [In millions of dollars] Demand deposits, Time deposits, Interbank except interbank except interbank deposits Re- Bal- De- Call date F B s e s w e R d e a r i r n e v e t v h - r k e e a s s l v C a i a u n s l h t m b a w a n d e n i c o s t k t e - h i s s c 1 j m p u a o s d a d t s e n e - i - d t d s 2 v pa i s I d h r n t u i d n p a i e s l - , r s - , p S o a l t i a n t t i d e c s al C f a o e i n f e r f d d i t - i- U Go .S v . - p v a s i I d h r n t u i d n p a i e s - l , r s - , S p a t o a n l t d i e t s - U m G er o e . n S n v - t - . D b om an e k s s tic F ei o g r n - B r i o n o w g r s - - C co a a u p c n - it t a s l an p t d i o o r c n a o s - r- v s i u s b io d n i- s c c e h t e e c r c . s 3 k ' s ment an p t d i o o r c n a o s - r- v s i i s b i d on i- s po in s g ta s l 4 m D a e n - d Time banks Total—All Member Banks 1929—Dec. 31 2,374 558 2,168 16,647 17,526 1,335 1,681 143 12,267 595 122 3,517 95 698 879 6,709 1933—June 30 2,235 405 2,008 12,089 11,830 1,087 657 806 7,803 300 788 3,057 89 146 191 4,837 1939—Dec. 30 11,604 841 5,506 25,681 24,604 2,321 563 743 11,215 432 51 8,507 144 759 3 5,522 1940—June 29 13,751 789 5,751 27,877 26,397 2,529 475 711 11,459 410 59 8,852 134 703 3 5,608 Dec. 31 13,992 991 6,185 30,429 29,576 2,724 913 616 11,687 435 56 9,581 135 706 3 5,698 1941—Apr. 4 13,531 837 66,340 31,576 29,752 2,957 662 523 11,837 392 54 69,873 6137 6635 3 5,754 June 30 12.959 999 6,293 32,678 31,429 2,940 738 619 11,898 397 55 9,610 138 688 3 5,800 Sept. 24 13.246 1,061 66,562 33,822 32,149 3,090 730 781 11,980 382 50 610,176 6140 6628 13 5,852 Dec. 31 12,396 1,087 6,246 33,754 33,061 3,066 1,009 1,709 11,878 418 50 9,714 133 678 4 5,886 1942—Apr. 4 12,725 884 66,276 34,670 32,602 3,285 589 2,164 11,520 395 49 69,650 6118 6641 14 5,930 New York City* 1929—Dec. 31 827 68 179 4,750 5,847 128 1,180 20 1,112 33 18 1,198 40 597 179 2,105 1933—June 30 846 46 101 4,358 4,676 96 461 332 671 4 110 1,255 22 128 8 1,582 1939—Dec# 30 5,915 89 125 8,899 9,030 251 178 74 693 43 3,542 1 695 1,592 1940—June 29 7,072 88 119 10,235 10,283 258 147 67 732 29 3,840 650 1,599 Dec. 31 7,057 102 122 11,062 11,357 370 471 48 768 51 4,032 646 1,615 1941—Apr. 4 6,715 85 6154 11,645 11,629 302 302 29 806 , 38 64,021 6577 1,623 June 30 5,857 136 131 11,619 11,895 319 306 32 778 27 3,948 623 1,625 Sept. 24 5,534 96 6114 11,506 11,595 300 342 135 810 29 64,040 6563 10 1,635 Dec. 31 5,105 93 141 10,761 11,282 319 450 866 778 29 3,595 612 1,648 1942—Apr. 4 5,236 81 6192 11,335 11,235 296 154 967 751 25 63,383 6576 4 1,655 City of Chicago^ 1929—Dec. 31 169 13 133 957 1,041 42 32 8 332 58 2 310 19 33 41 316 1 19 9 3 3 9 3 — — D juence . 3 3 0 0 9 2 9 3 3 2 3 4 4 2 2 28 0 3 3 1,7 9 3 1 9 2 1,6 8 7 7 6 0 1 8 6 7 7 2 1 4 6 8 4 0 6 4 3 8 5 3 8 10 1 6 3 8 2 7 5 9 9 9 2 2 2 5 0 0 4 1940—june 29 1,187 39 242 1,898 1,782 199 17 79 489 15 5 949 7 260 Dec. 31 1,051 42 319 1,941 1,905 174 27 90 496 8 5 997 8 270 1941—Apr. 4 815 20 6283 1.755 1,685 181 26 108 486 10 4 67 270 June 30 1,062 41 262 2,205 2,109 213 33 95 480 17 5 1,010 8 279 Sept. 24 1,278 39 6271 2,228 2,112 228 29 95 469 22 6l,081 68 279 Dec. 31 1,021 43 298 2,215 2,152 233 34 127 476 1,027 8 288 1942—Apr. 4 1,088 27 6285 1,919 1,886 203 31 296 455 61,253 69 289 Reserve City Banks 1929—Dec. 31 751 156 947 5,229 5,547 423 300 76 4,433 371 41 1,604 30 64 292 2,029 1933—June 30 705 122 1,002 3,764 3,708 349 108 312 2,941 208 388 1,315 59 15 16 1,533 1939—Dec. 30 3,118 348 2,485 8,176 8,002 813 190 435 4,362 240 14 3,516 117 53 1,828 1940—Jung 29 3,759 334 2,679 8,774 8,372 956 147 422 4,422 219 18 3,526 105 44 1,873 Dec. 31 4,027 396 2,741 9,581 9,468 995 228 327 4,506 226 19 3,919 106 51 1,904 1941—Apr. 4 4,107 361 62,859 10,137 9,552 1,206 171 273 4,540 202 19 64,023 6108 649 1,917 June 30 4,125 385 2,793 10,480 10,142 1,139 209 341 4,590 211 19 4,000 108 1,940 Sept. 24 4,359 425 62,885 11,060 10,637 1,221 190 383 4,591 186 19 64,324 6108 655 1,948 Dec. 31 4,060 425 2,590 11,117 11,127 1,144 286 491 4,542 243 20 4,302 103 55 1,967 1942—Apr. 4 4,221 348 62,705 11,689 11,105 1,313 202 633 4,366 224 18 64,235 690 41 6 1,981 Country Banks 1929—Dec. 31 627 321 908 5,711 5,091 742 169 39 6,390 133 61 405 6 3 367 2,258 1933—June 30 452 203 702 3,054 2,576 555 72 116 3,833 86 285 228 7 1 167 1,517 1939—Dec. 30 . 1,578 363 2,614 6,866 5,896 1,090 172 154 5,677 140 35 571 26 2 3 1,851 1940—June 29 1,733 328 2,711 6,969 5,960 1,115 164 143 5,816 147 37 538 29 2 3 1,876 Dec. 31 1,857 452 3,002 7,845 6,846 1,184 187 151 5,917 150 33 633 29 2 3 1,909 1941—Apr. 4 1,894 372 63,044 8,039 6,886 1,269 163 114 6,006 142 31 6677 e629 62 3 1,943 June 30 1,914 437 3,106 8,374 7,282 1,269 190 151 6,049 143 31 652 30 2 3 1,956 Sept. 24 2,075 501 63.293 9,028 7,805 1,341 169 168 6,110 145 30 6732 632 62 3 1,990 Dec. 31 2,210 526 3,216 9,661 8,500 1,370 239 225 6,082 146 31 790 J° 2 4 1,982 1942-Apr. 4 2,180 429 63,093 9,726 8,376 1,473 202 269 5,948 145 30 6779 628 62 4 2,005 1 Prior to Dec. 31, 1935, excludes balances with private banks to the extent that they were then reported in "Other assets." Since Oct. 25,1933, includes time balanceswith domesticbanks which on that date amounted to $69,000,000 and which prior to that time were reported in "Other assets." 2 Demand deposits other than interbank and U. S. Government, less cash items reported as in process of collection and, prior to Dec. 31, 1935, less cash items reported on hand but not in process of collection. 3 Includes "Due to Federal Reserve Banks (transit account)," known as "Due to Federal Reserve Banks (deferred credits)" prior to Dec. 31, 1935. 4 U. S. Treasurer's time deposits, open account, are combined with postal savings (time) deposits. 6 Central reserve city banks. 6 Partly estimated. Back figures.—See Annual Report for 1937 (tables 52-58). 819 AUGUST 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 i m n a v e n e n d s t t s - Total i t t n a c a u r d g u i n r u a r l a d i - s l l - , - p O m k a p e p a t e r e n - r b d a r e T e n a r o o l d k s - - ot T h o ers e l R s o e t a a a n t l s e L ba o t n a o k n s s O lo t a h n e s r Total Total Bills C f o d n i f e e e c e d a b r i s t t n - t s e i - - - Notes Bonds G t a e u n e a - d r- O r s i e t t c h ie u e s - r ers Total—101 Cities 1941—June 28,157 10,252 5,772 370 483 447 1,243 40 1,897 17,905 14,253 1,033 2,234 7,952 3,034 3,652 1942—February... 30,570 11,331 6,860 423 451 408 1,250 35 ,904 19,239 15,542 1,247 2,335 9,243 2,717 3,697 March 30,941 11,408 6,976 426 435 409 1,246 28 ,888 19,533 15,803 1,107 2,348 9,637 2,711 3,730 April 31,095 11,288 6,905 418 434 402 1,244 28 ,857 19,807 16,090 1,000 365 2,360 9,684 2,681 3,717 May 31,493 10,996 6,622 403 481 402 1,245 27 ,816 20,497 16,859 1,170 678 2,344 9,998 2,669 3,638 June 31,670 10,811 6,537 366 471 402 1,240 29 ,766 20,859 17,324 1,360 672 2,753 10,336 2,203 3,535 1942—Apr. 29 31,205 11,094 6,726 409 441 395 1,246 30 ,847 20,111 16,405 1,058 611 2,356 9,705 2,675 3,706 May 6 31,135 11,008 6,649 407 456 393 1,245 25 ,833 20,127 16,471 1,068 676 2,352 9,696 2,679 3,656 May 13 31,222 11,001 6,669 412 433 395 1,244 24 ,824 20,221 16,576 1,150 676 2,348 9,736 2,666 3,645 May 20 31,888 11,012 6,613 400 502 415 1,246 24 ,812 20,876 17,210 1,236 687 2,350 10,276 2,661 3,666 May 27 31,726 10,962 6,557 393 533 405 1,246 34 ,794 20,764 17,180 1,226 674 2,327 10,283 2,670 3,584 31,679 10,905 6,542 382 528 403 1,243 28 ,779 20,77 17,226 1,281 672 2,297 10,309 2,667 3,548 31,736 10,844 6,552 372 475 404 1,242 29 ,770 20,892 17,346 1,388 675 2,912 10,318 2,053 3,546 31,677 10,776 6,546 360 433 405 1,238 27 ,767 20,901 17,364 1,390 672 2,909 10,347 2,046 3,537 31,587 10,718 6,505 350 448 396 1,238 32 ,749 20,869 17,361 1,384 670 2,893 10,369 2,045 3,508 July 1 32,382 10,740 6,469 341 519 393 1,236 36 ,746 21,642 18,232 1,4471,471 2,899 10,383 2,032 3,410 July 8 32,366 10,661 6,456 344 485 382 1,234 24 ,736 21,705 18,313 1,5261,482 2,908 10,364 2,033 3,392 July 15 33,338 10,846 6,481 346 609 414 1,232 47 ,717 22,492 19,110 1,6331,461 2,888 11,086 2,042 3,382 July 22 33,396 10,764 6,430 342 623 411 1,231 27 ,700 22,632 19,218 1,751 1,454 2,876 11,097 2,040 3,414 New York City 1941—June 11,794 3,412 2,213 94 349 161 114 30 451 8,382 7,003 582 1,456 3,242 1,723 1,379 1942—February.., 12,267 3,830 2,697 79 317 149 103 32 453 8,437 6,981 413 1,447 3,642 1,479 ,456 March 12,471 3,893 2,775 79 308 148 103 26 454 8,578 7,097 334 1,457 3,821 1,485 ,481 April 12,592 3,851 2,733 79 316 147 103 26 447 8,741 7,273 347 162 1,461 3,846 1,457 ,468 May 12,696 3,756 2,604 78 363 148 103 24 436 8,940 7,559 358 329 1,431 3,996 1,445 ,381 June 12,625 3,718 2,594 65 355 151 103 26 424 8,907 7,584 391 297 1,605 4,090 1,201 ,323 1942—Apr. 29.... 12,581 3,721 2,610 76 316 142 104 28 445 8,860 7,411 371 273 1,452 3,862 1,453 ,449 May 6 12,568 3,738 2,614 81 336 141 104 23 439 8,830 7,447 335 335 1,445 3,881 1,451 ,383 May 13 12,587 3,728 2,625 82 316 143 103 22 437 8,859 7,478 344 340 1,437 3,913 1,444 ,381 May 20 12,848 3,773 2,595 76 386 158 103 21 434 9,075 7,678 383 325 1,427 4,107 ,436 ,397 May 27 12,782 3,786 2,581 73 413 151 103 32 433 8,996 7,633 368 315 1,415 4,085 ,450 ,363 12,734 3,771 2,588 70 407 150 103 25 428 8,963 7,630 392 300 1,397 4,088 ,453 ,333 12,668 3,737 2,600 67 359 155 103 27 426 8,931 7,600 408 300 1,695 4,079 ,118 ,331 12,560 3,684 2,598 63 319 154 103 24 423 8,876 7,550 375 294 1,672 4,089 ,120 ,326 12,538 3,678 2,587 60 335 145 103 28 420 8,860 7,557 389 292 1,657 4,105 ,114 ,303 July 1 12,864 3,738 2,576 58 405 144 102 34 419 9,126 7,877 414 616 1,646 4,100 1,101 ,249 July 8 12,807 3,686 2,580 56 374 136 102 22 416 9,121 7,877 434 615 1,639 4,094 1,095 ,244 July 15 13,246 3,848 2,585 59 483 159 103 45 414 9,398 8,164 475 590 1,650 4,350 1,099 ,234 July 22 13,251 3,833 2,573 58 504 159 103 25 411 9,418 8,153 534 556 1,644 4,324 1,095 1,265 Outside New York City 1941—June 16,363 6,840 3,559 276 134 286 1,129 10 1,446 9,523 7,250 451 778 4,710 1,311 2,273 1942—February... 18,303 7,501 4,163 344 134 259 1,147 3 1,451 10,802 8,561 834 5,601 1,238 2,241 March 18,470 7,515 4,201 347 127 261 1,143 2 1,434 10,955 8,706 773 891 5,816 1,226 2,249 April 18,503 7,437 4,172 339 118 255 ,141 2 1,410 11,066 8,817 653 203 899 5,838 1,224 2,249 May 18,797 7,240 4,018 325 118 254 ,142 3 1,380 11,557 9,300 812 349 913 6,002 1,224 2.257 June 19,045 7,093 3,943 301 116 251 ,137 3 1,342 11,952 9,740 969 375 1,148 6,246 1,002 2,212 1942—Apr. 29 18,624 7,373 4,116 333 125 253 ,142 1,402 11,251 8,994 687 338 904 5,843 1,222 2,257 May 6 18,567 7,270 4,035 326 120 252 ,141 1,394 11,297 9,024 733 341 907 5,815 1,228 2,273 May 13 18,635 7,273 4,044 330 117 252 ,141 1,387 11,362 9,098 806 336 911 5,823 1,222 2,264 May 20 19,040 7,239 4,018 324 116 257 ,143 1,378 11,801 9,532 853 362 923 6,169 1,225 2,269 May 27 18,944 7,176 3,976 320 120 254 ,143 1,361 11,768 9,547 858 359 912 6,198 1,220 2,221 18,945 7,13- 3,954 312 121 253 ,140 1,351 11,811 9,596 889 372 900 6,221 1,214 2,215 19,068 7,107 3,952 305 116 249 ,139 1,344 11,961 9,746 980 375 1,217 6,239 935 2,215 19,117 7,092 3,948 297 114 251 ,135 ,344 12,025 9,814 1,015 378 ,237 6,258 926 2,211 19,049 7,040 3,918 290 113 251 ,135 ,329 12,009 9,804 995 378 ,236 6,264 931 2,205 July 1 19,518 7,002 3,893 283 114 249 ,134 ,327 12,516 10,3551,033 855 ,253 6,283 931 2,161 July 8 19,559 6,975 3,876 288 111 246 ,132 ,320 12,584 10,436 1,092 867 ,269 6,270 938 2,148 July 15 20,092 6,998 3,896 287 126 255 ,129 ,303 13,094 10,946 1,158 871 ,238 6,736 943 2,148 July 22 20,145 6,931 3,857 284 119 252 1,128 ,289 13,214 11,065 1,217 898 ,232 6,773 945 2,149 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. FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

WEEKLY REPORTING MEMBER BANKS—NEW YORK CITY AND OUTSIDE RESERVES AND LIABILITIES [Monthly data are averages of Wednesday figures. In millions of dollars] Demand deposits, Time deposits, Interbank except interbank except interbank deposits Reserves Bal- De- Indi- Indi- Domestic Date or month B s w F e e R a e r i r n a e t d v h k l - - e s v C a i a n u s l h t b m a w a n d e n i c o s t k e t - h i s s c 1 j m u a d s a d t e n e - - d d 5 s p u p v n c h a o a a i e o n i d r l r p r r d s a t - - - s , - - , S p s d s a t i o i u c a i n o v l a t b d n i e i l t - s - s - c C c h o a e f e e e f i n t f e r r c c i d t s d - . k i ' - s m U G e e r . o n n S v - t . - s p u p v n c h a o a a i o e i n r d l r p r r s d a t - - - s - , - , S p s d s a i t i o u i c a o n v l a b t n d i i e l - t - s s - p U m G i a s o e n a n o r e . s g n v S t d n v s a - - . t - 3 l m D a e n b - d a 1 nk T s ime b F e a i o n g r k n - s B r in o o g w r s - - co C i a u t a c a n p - l t - s B d i a e t n s b 4 k tions tions Total 101 Cities 1941—June 10,925 585 3,479 23,969 23,509 1,741 518 456 5,233 175 26 9,059 114 663 3,873 9,100 1942—February ... 10,223 540 3,280 24,714 24,343 1,799 552 1,460 5,010 185 20 9,017 97 637 3,927 8,713 March 10,195 530 3,283 24,882 24,400 1,813 538 1,815 4,976 170 20 8,846 93 635 3,932 9,679 April 9,936 514 3,277 24,845 24,304 1,963 533 1,810 4,942 173 20 8,739 91 639 3,935 9,166 May 9,711 514 3,335 25,250 24,582 2,068 521 1,510 4,921 189 20 8,806 88 660 3,947 9,688 June 9,759 510 3,398 25,878 25,393 1,905 485 846 4,924 166 20 9,080 87 667 3,949 9,348 1942—Apr. 29 9,902 535 3,217 25,358 24,636 2,096 544 1,506 4,929 189 20 8,597 90 652 3,929 9,373 May 6 9,646 516 3,248 24,854 23,997 2,102 550 1,393 4,927 197 20 8,802 90 660 3,947 10,640 May 13 9,794 541 3,369 25,241 24,752 2,061 466 1,292 4,920 193 20 8,908 88 660 3,948 8,587 May 20 9,709 485 3,297 25,395 24,752 2,080 526 1,834 4,918 192 20 8,687 86 659 3,947 10,161 May 27 9,695 514 3,428 25,511 24,825 2,030 543 1,521 4,918 174 20 8,826 87 664 3,946 9,364 June 3 9,812 488 3,415 25,483 24,922 1,971 485 1,301 4,914 175 20 9,088 87 667 3,953 9,066 June 10 9,754 524 3,357 26,022 25,433 1,902 492 824 4,916 175 20 8,993 87 663 3,952 8,668 June 17 9,821 510 3,481 26,058 25,755 1,879 486 608 4,927 177 20 9,227 87 671 3,949 10,161 June 24...... 9,650 517 3,339 25,948 25,462 1,865 478 652 4,939 138 20 9,012 85 665 3,943 9,497 Julyl.;..... 9,351 3,290 25,502 25,343 1,803 657 1,442 4,955 137 20 9,005 85 673 3,950 11,174 July 8 9,308 503 2,675 25,654 25,321 1,718 487 1,094 4,956 129 20 8,541 84 679 3,954 8,213 July 15 9,207 491 2,740 25,822 25,936 1,730 699 1,914 4,957 121 20 8,470 83 684 3,948 9,766 July 22 9,638 493 2,687 26,313 25,942 1,772 465 2,053 4,969 119 20 8,313 80 679 3,953 9,386 New York City 1941—June 5,667 123 97 10,986 11,086 291 305 19 699 22 3,860 600 1,519 3,873 1942—February ... 4,955 78 84 10,430 10,627 249 320 736 699 28 3,461 572 1,538 3,466 March 4,879 76 109 10,559 10,727 241 276 872 690 21 3,338 573 1,539 3,863 April 4,682 78 111 10,519 10,687 282 281 940 680 20 3,250 573 1,541 3,557 May 4,482 80 84 10,347 10,459 296 288 998 656 20 3,224 592 1,546 3,898 June...«.«..» 4,438 79 77 10,621 10,797 238 256 506 647 18 3,280 599 1,548 3,618 1942—Apr. 29 4,574 85 82 10,571 10,702 300 271 848 670 3,193 581 1,537 3,715 May 6 4,401 79 10,169 10,225 292 302 959 664 20 3,230 591 1,547 4,507 May 13 4,551 82 10,332 10,494 283 236 925 660 20 3,271 591 1,546 3,239 May 20 4,515 77 10,429 10,553 321 293 1,155 652 21 3,165 590 1,547 4,108 May 27 4,461 83 10,456 10,562 288 322 953 649 21 3,232 596 1,544 3,740 June 3 4,482 79 10,489 10,626 268 256 800 647 21 3,284 597 1,550 3,442 June 10 4,401 80 10,691 10,835 245 283 498 646 21 3,235 595 1,548 3,459 June 17...... 4,485 79 10,685 10,896 234 230 354 647 20 3,330 602 1,549 3,991 June 24. .„ «, 4,382 79 10,620 10,830 204 255 374 648 12 3,273 599 1,543 3,581 July 1 4,276 75 10,391 10,727 234 388 790 654 12 3,281 603 14 1,541 4,719 July 8 4,130 79 10,484 10,640 189 254 592 650 12 3,137 610 1,542 3,123 July 15 4,048 73 10,357 10,753 197 445 987 649 11 3,188 612 1,541 3,963 July 22 4,297 73 10,665 10,820 234 244 1,083 651 11 3,065 612 1,543 3,444 Outside New York City 1941—June „ 5,258 462 3,382 12,983 12,423 1,450 213 437 4,534 153 26 5,199 114 63 2,354 5,227 1942—February .. 5,268 462 3,196 14,284 13,716 1,550 232 724 4,311 157 20 5,556 97 65 2,389 5,247 March 5,316 454 3,174 14,323 13,673 1,572 262 943 4,286 149 20 5,508 93 62 2,393 5,816 April 5,254 436 3,166 14,326 13,617 1,681 252 870 4,262 153 20 5,489 91 66 2,394 5,609 May 5,229 434 3,251 14,903 14,123 1,772 233 512 4,265 169 20 5,582 88 68 2,401 5,790 June 5,321 431 3,321 15,257 14,596 1,667 229 340 4,277 148 20 5,800 87 68 2,401 5,730 1942—Apr. 29 .... 5,328 450 3,135 14,787 13,934 1,796 273 658 4,259 169 20 5,404 90 71 2,392 5,658 May 6 5,245 437 3,168 14,685 13,772 1,810 248 434 4,263 177 20 5,572 90 69 2,400 6,133 May 13 5,243 459 3,288 14,909 14,258 1,778 230 367 4,260 173 20 5,637 88 69 2,402 5,348 May 20 5,194 408 3,220 14,966 14,199 1,759 233 679 4,266 171 20 5,522 86 69 2,400 6,053 May 27 5,234 431 3,330 15,055 14,263 1,742 221 568 4,269 153 20 5,594 87 68 2,402 5,624 Tune 3 5,330 409 3,336 14,994 14,296 1,703 229 501 4,267 154 20 5,804 87 70 2,403 5,624 June 10 5,353 444 3,283 15,331 14,598 1,657 209 326 4,270 154 20 5,758 87 68 2,404 5,209 June 17 5,336 431 3,403 15,373 14,859 1,645 256 254 4,280 157 20 5,897 87 69 2,400 6,170 June 24 5,268 438 3,261 15,328 14,632 1,661 223 278 4,291 126 20 5,739 85 66 2,400 5,916 Julyl....... 5,075 400 3,209 15,111 14,616 1,569 269 652 4,301 125 20 5,724 85 70 2,409 6,455 July 8 5,178 424 2,641 15,170 14,681 1,529 233 502 4,306 117 20 5,404 84 69 2,412 5,090 July 15 5,159 418 2,709 15,465 15,183 1,533 254 927 4,308 110 20 5,282 83 72 2,407 5,803 July 22...... 5,341 420 2,660 15,648 15,122 1,538 221 970 4,318 108 20 5,248 67 2,410 5,942 1 Reciprocal bank balances reported gross before July 8,1942, now reported net. The July 1 figures include $46,000,000 of such balances in New York City and $528,000,000 at all reporting member banks. 2 Demand deposits other than interbank and U. S. Government, less cash items reported as in process>f collection. 3 U. S. Treasurer's time deposits, open account, are combined with postal savings (time) deposits. 4 Debits to demand deposit accounts except interbank and U. S. Government accounts. AUGUST 1942. 82.I 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 d F i e s d tr e i r c ( a 1 t l 9 a 4 R n 2 e d ) s e d r a v t e e m T v lo a e e o i n a n n s t d n - a t t - s s l Total C t m d c a r i o u i n i n e a a m s d - r l - l - , , - p O m a k p p a e e t e r n - r b o p T r s r o u o e k r c c c - u a h r r a r it s y i i i e n n s g g e l R o st a e a n a t l s e b L a o t n o a k n s s O lo t a h n e s r Total Total Bills f C i i c e o n a r f - t t e i- Notes Bonds G a u n a - r O r s i e t t c i h e u e s - r agri- ers To debt- teed cul- and others edtural deal- ness ers Boston (6 cities) June 24 1,697 787 449 100 14 14 74 135 910 773 102 45 62 513 51 137 July 1 1,746 785 450 98 13 14 74 135 961 823 105 90 62 516 50 138 July8 1,755 786 451 100 12 14 74 134 969 833 112 91 63 516 51 136 July 15 1,780 788 452 99 15 14 74 133 992 857 105 92 64 545 51 135 July 22 1,772 775 444 11 15 74 132 997 863 110 92 61 550 50 134 New York (8 cities)* June 24 13,641 4,062 2,739 66 338 186 191 28 514 9,579 8,124 408 303 1,752 4,483 1,178 ,455 July 1 13,957 4,120 2,727 64 409 184 190 34 512 9,837 8,464 433 648 1,741 4,47" 1,165 ,373 July 8 13,903 4,066 2,729 62 378 176 190 22 509 9,837 8,469 457 647 1,734 4,47: 1,159 ,368 July 15 14,380 4,227 2,735 64 487 199 190 45 507 10,153 8,794 509 623 1,744 4,755 1,163 ,359 July 22 14,390 4,213 2,720 63 512 199 190 25 504 10,177 8,784 569 588 1,739 4,729 1,159 ,393 Philadelphia (4 cities) June 24 1,436 533 286 34 26 32 49 104 903 647 34 13 51 486 63 256 July 1 1,450 526 285 32 25 32 49 103 924 674 37 33 50 491 63 250 July 8 1,460 524 282 32 27 32 49 102 936 686 49 33 50 491 63 250 July 15 1,499 521 284 31 26 32 48 100 978 729 58 33 49 526 63 249 July 22 1,504 516 279 32 27 31 99 988 738 66 34 49 526 63 250 Cleveland (10 cities) June 24 2,543 856 432 21 13 16 182 192 1,687 1,411 53 65 237 919 137 276 July 1 2,598 850 428 20 13 16 182 191 1,748 L,471 58 113 240 924 136 277 July 8 2,599 848 425 22 12 16 181 192 1,751 [,476 63 121 241 914 137 275 July 15 2,656 850 427 23 15 16 182 187 1,806 :,533 70 122 238 967 136 273 July 22 2,655 843 423 24 15 15 182 184 1,812 ,540 75 127 238 962 138 272 Richmond (12 cities) June 24 940 311 150 16 3 11 53 78 629 562 24 12 91 383 52 67 July 1 958 308 147 16 3 11 52 79 650 583 27 30 94 380 52 67 July 8 960 307 143 17 3 11 52 81 653 586 29 31 94 380 52 67 July 15 994 303 142 17 3 11 52 78 691 625 35 31 72 435 52 66 July 22 999 298 141 16 3 11 52 75 701 635 40 31 69 441 54 66 Atlanta (8 cities) June 24 862 368 209 6 4 30 110 494 383 45 18 73 205 42 111 July 1 364 205 7 4 30 109 522 413 48 47 74 203 41 109 July8 363 203 7 4 30 110 525 417 50 48 74 203 42 108 July 15 906 364 203 8 4 30 110 542 434 47 46 72 225 44 108 July 22 904 357 200 7 5 29 107 547 438 50 46 72 226 44 109 Chicago (12 cities)* June 24 4,698 1,371 936 36 31 57 147 164 3,327 2,755 457 122 298 1,636 242 572 July 1 4,850 1,370 935 35 33 56 146 165 3,480 2,913 471 267 295 1,637 243 567 July8 4,847 1,366 937 35 30 56 146 162 3,481 2,915 467 266 294 1,640 248 566 July 15 4,999 1,390 950 35 40 58 146 161 3,609 3,043 488 272 291 1,743 249 566 July 22 5,013 1,376 947 35 32 58 146 158 3,637 3,069 505 282 287 1,746 249 568 St. Louis (5 cities) June 24 969 398 233 19 4 10 60 72 571 453 54 28 63 275 33 118 July 1 997 393 229 18 4 10 60 72 604 486 45 70 63 275 33 118 July 8 1,017 394 230 18 4 10 61 71 623 506 62 70 65 276 33 117 July 15 1,042 394 231 18 4 10 61 70 648 529 65 70 64 296 34 119 July 22 1,047 391 229 17 4 10 61 70 656 538 62 80 64 297 35 118 Minneapolis (8 cities) June 24 520 229 126 2 1 5 16 79 291 253 41 10 24 158 20 38 July 1 539 227 124 2 1 5 16 79 312 274 47 25 24 158 20 38 July 8 546 228 123 3 1 5 16 318 280 51 25 25 159 20 38 July 15 566 228 123 3 1 5 16 338 300 56 25 24 175 20 38 July 22 575 225. 121 3 1 3 16 81 350 312 60 24 24 184 20 38 Kansas City (12 cities) June 24 893 377 222 32 3 9 35 76 516 391 50 17 89 170 65 125 July 1 924 377 223 31 3 8 35 77 547 423 53 39 94 172 65 124 July 8 931 377 223 31 3 8 35 77 554 430 57 36 102 170 65 124 July 15 959 380 226 31 3 9 35 76 579 456 60 36 100 196 64 123 July 22 968 382 227 31 3 9 35 77 586 464 64 36 101 199 64 122 Dallas (9 cities) June 24 703 334 239 3 3 14 21 54 369 308 46 13 44 169 36 61 July 1 734 333 236 3 3 15 22 54 401 341 47 44 45 169 36 60 July 8 723 325 234 3 3 13 21 51 398 340 49 42 45 169 35 58 July 15 755 328 232 3 3 18 21 51 427 369 55 41 45 192 36 58 July 22 759 325 229 2 -A 3 19 21 51 434 376 60 41 45 194 36 58 San Francisco (7 cities) June 24 2,685 1,092 484 15 34 380 171 ,593 ,301 70 24 109 972 126 292 July 1 2,743 1,087 480 15 34 380 170 ,656 ,367 76 65 117 981 128 289 July 8 2,737 1,077 476 14 33 379 167 ,660 ,375 80 72 121 974 128 285 July 15 2,802 1,073 476 14 34 377 164 ,729 ,441 85 70 125 1,031 130 288 July 22 2,810 1,063 470 14 33 377 162 ,747 ,461 90 73 127 1,043 128 286 City of Chicago* June 24 3,048 902 704 16 27 50 24 81 2,146 ,790 380 78 164 1,077 91 356 Julyl 3,141 904 704 16 29 50 24 81 2,237 ,884 369 181 163 1,0 91 353 July8 3,141 903 707 16 25 50 24 81 2,238 ,886 365 180 162 1,083 96 352 July 15 3,261 925 718 16 35 51 24 81 2,336 1,983 380 186 159 1,161 97 353 July 22 3,267 915 717 17 28 51 24 78 2,35! 1,998 400 189 156 1,156 97 354 * 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. iReciprocal bank balances reported gross before July 8, 1942, now reported net. The July 1 figures include such balances as follows: Boston District 23 million,, New York 5599,, PPhhiillaaddeellpphhiiaa 664, Cleveland 42, Richmond 51, Atlanta 54, Chicago 59, St. Louis 36, Minneapolis 11,1, Kansas City 36, Dallas 2299, SSaann FFrraanncciissccoo 6644, aanndd CCiittyy ooff CChhiiccaaggoo 4444. FEDERAL RESERVE B.ULLETIN 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 d F i e s d tr e i r c ( a t 1 l 9 a 4 R n 2 e d ) s e d r a v t e e B s w F e R a e e r i n r e a t d v k h - l - e s v C a i a n u sh lt m b a w a n d e n i c o s t k e - t h i s s c * j p m u o a d s a s d e t n i e - - t d d s 1 s p u p v n h c a o a a i e i o n d p l r r r r d s a - t - s - , - - , S p d s s a t i o i i a u c o n v l a t b i d n i e l t - - s - s c C c h o e a f e e i e f t n e f r r c c d i d s t . - k i ' - s U m G e . r e o S n n v . - t - s p u p v n h c a a a o i e o i n r l d p r r r d s t a - - - s - , - , S p d s s a t i o i i u a c n o v l t a b d n i i e l t - - s s - p m U G i a s e o n a . n e o r s g S n v n d t v s a . - - ^ t - l m D a e n b - d a 4 nk T s ime b e F a i o n g r n k - s B r i o n o w g r s - - c C o i a u t a c a n p - l - ts B d i a e ts n b 3 k tions tions Boston (6 cities) June 24 470 88 169 1,597 1,559 109 28 12 216 1 360 22 252 577 July 1 421 71 163 1,565 1,544 108 31 31 216 1 353 21 252 613 July 8 444 73 144 1,590 1,564 104 35 . 24 217 1 346 23 253 498 July 15 425 75 145 1,590 1,580 101 31 46 218 1 335 23 252 580 July 22 456 74 140 1,611 1,577 103 25 51 218 1 328 20 253 570 New York (8 cities)* June 24 4,577 107 190 11,595 11,575 462 275 389 1,002 18 7 3,350 7 600 1,669 3,870 July 1 4,479 102 212 11,292 11,489 407 413 825 1,008 19 7 3,362 7 605 14 1,667 5,200 July 8 4,323 109 142 11,373 11,399 352 274 619 1,005 19 7 3,211 7 611 1,667 3,395 July 15 4,238 102 135 11,250 11,520 363 471 1,042 1,004 18 7 3,259 7 614 35 1,666 4,254 July 22 4,489 102 130 11,557 11,585 393 265 1,139 1,007 18 3,135 7 613 5 1,668 3,737 Philadelphia (4 cities) June 24 493 27 192 1,373 1,320 139 13 8 166 2 420 5 6 2 217 487 July 1 472 24 194 1,340 1,304 134 21 20 166 2 434 5 7 218 488 July 8 493 26 118 1,363 1,306 140 16 15 166 2 m 375 4 6 218 391 July 15 471 25 118 1,364 1,327 138 16 42 165 2 * 365 4 6 218 417 July 22 491 25 121 1,386 1,327 137 16 44 166 2 370 2 6 218 395 Cleveland (10 cities) June 24 704 60 346 2,055 2,060 106 30 16 677 18 517 26 2 399 751 July 1 658 56 341 2 040 2 068 105 33 36 678 18 515 26 2 400 799 July 8 650 59 305 2,035 2,037 111 31 29 679 17 487 26 2 400 606 July 15 661 58 301 2,078 2,118 118 35 55 680 17 481 26 2 400 692 July 22 697 60 295 2,122 2,130 109 28 57 681 18 466 25 1 401 724 Richmond (12 cities) June 24 299 31 258 805 763 96 14 15 198 2 2 397 6 104 297 July 1 294 28 247 793 761 97 14 26 199 2 2 398 6 103 322 July 8 316 31 206 815 779 94 15 21 200 2 2 364 6 104 276 July 15 300 29 212 827 797 92 17 47 200 2 2 350 6 103 336 July 22 301 31 213 837 792 95 13 48 201 2 2 344 6 103 300 Atlanta (8 cities) June 24 213 20 248 637 610 94 5 18 187 3 2 420 2 2 100 283 July 1 220 18 243 639 617 94 8 40 187 3 2 422 2 2 100 279 July 8 220 20 183 641 624 90 8 31 188 3 2 371 2 2 99 261 July 15 228 19 194 650 645 91 6 64 188 3 2 365 2 3 100 277 July 22 231 20 200 657 634 94 7 67 188 3 2 361 2 3 100 281 Chicago (12 cities)* June 24 1,420 92 597 3,861 3,634 438 45 101 943 2 4 1,477 8 11 439 1,523 July 1 1,389 90 577 3,794 3,605 430 57 268 946 2 4 1,475 8 14 441 1,756 July 8 1,428 93 470 3,812 3,619 410 45 202 946 2 4 1,453 8 13 441 1,286 July 15 1,447 93 496 3,887 3,756 407 51 365 947 2 4 1,416 8 13 440 1,541 July 22 1,481 90 499 3,928 3,729 423 45 382 949 2 4 1,402 8 13 438 1,588 St. Louis (5 cities) June 24 260 16 212 669 675 63 7 11 182 3 1 501 1 101 288 July 1 250 14 202 665 668 64 13 32 182 3 1 492 1 101 291 July 8 243 16 158 669 687 63 25 182 3 1 466 101 244 July 15 252 14 149 696 719 63 7 47 181 3 1 442 101 255 July 22 259 15 154 j 703 712 61 7 52 181 3 1 447 101 283 Minneapolis (8 cities) June 24 120 9 126 385 337 86 6 4 105 1 218 3 1 65 159 July 1 112 8 126 393 349 89 7 6 105 1 217 3 1 65 180 July 8 120 9 110 402 352 89 6 5 105 1 209 3 1 66 160 July 15 113 9 98 407 364 87 6 10 105 1 201 3 1 65 168 July 22 119 9 86 408 362 84 6 10 105 1 202 3 1 66 167 Kansas City (12 cities) June 24 273 18 370 710 693 98 10 10 134 1 592 6 114 322 July 1 271 16 362 716 695 103 11 25 134 1 592 6 113 311 July 8 274 17 328 710 700 98 11 21 134 1 578 6 114 282 July 15 272 17 341 745 743 104 12 35 135 1 569 6 113 316 July 22 288 17 332 748 744 104 10 39 135 1 577 6 114 356 Dallas (9 cities) June 24 201 16 300 661 648 54 11 21 119 12 337 1 94 234 July 1 205 15 291 663 652 58 10 44 119 11 339 1 94 235 JulyS 207 17 265 665 660 59 9 28 119 11 320 1 94 211 July 15 213 16 280 692 689 58 10 60 119 11 314 1 93 250 July 22 221 17 271 692 680 58 10 62 119 10 316 1 94 258 San Francisco (7 cities) June 24 620 33 331 1,600 1,588 120 34 47 1,010 76 423 21 20 389 706 July 1 580 33 332 1,602 1,591 114 39 89 1,015 75 406 21 20 396 700 July 8 590 33 246 1,579 1,594 108 30 74 1,015 68 361 22 20 397 603 July 15 587 34 271 1,636, 1,678 108 37 101 1,015 61 373 21 21 397 680 July 22.. 605 33 246 1,664 1,670 111 33 102 1,019 59 365 21 21 397 727 City of Chicago* June 24 983 44 272 2,437 2,343 229 21 76 461 1,091 10 287 950 July 1 968 43 277 2,399 2,315 222 31 204 463 1,083 12 288 1,071 July 8 982 45 217 2 430 2 337 219 22 150 463 1,062 12 288 781 July 15 989 44 213 2,445 2,392 217 25 285 463 1,035 12 288 961 July 22 1,025 44 218 2,479 2,389 224 22 303 463 1,030 11 285 942 * See note on preceding page. * Demand deposits other than interbank and U. S. Government, less cash items reported as in process of collection. 2 U. S. Treasurer's time deposits, open account, are combined with postal savings (time) deposits. s Debits to demand deposit accounts except interbank and U. S. Government accounts. 4 See note on preceding page. AUGUST 1942. 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 Commer- Held by Based on cial End of month sta p o n a u d p t i e - n r g1 sta T o n o u d t t a i - n l g Total Accept O b i i n w l g ls n banks b B ou il g ls ht Others2 I U m S i n t n p a i t o t t o e e r d s ts E U S x f n t r p a o i t o t m e e r s d ts ex D c o h l a l n ar ge G U sh n oo i i p t d e p p s d o e s i d t n c> ts r F i e n d o r i e n i g o n r States countries 1941—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 October 378 185 138 90 47 47 109 12 4 48 11 November 387 194 144 93 51 50 116 14 5 48 12 December •...«..». 375 194 146 92 54 49 116 15 4 48 11 1942—January ......, ,..,.... 381 197 154 103 52 43 116 17 3 51 11 February 388 190 144 92 53 46 112 18 2 44 13 March 384 183 146 89 57 37 103 17 2 45 16 April 373 177 139 86 53 38 97 17 1 48 14 May 354 174 133 82 51 41 101 16 1 43 13 June 315 163 122 78 44 41 94 13 52 4 1 As reported by dealers; includes some finance company paper sold in open market. 2 None held by Federal Reserve Banks. • 8 Less than $500,000. Back figures.—See Annual Report for 1937 (table 70). CUSTOMERS' DEBIT BALANCES, MONEY'BORROWED, AND PRINCIPAL RELATED ITEMS OF STOCK EXCHANGE FIRMS CARRYING MARGIN ACCOUNTS [Member firms of New York Stock Exchange. Ledger balances in millions of dollars] Debit balances Credit balances End of month Customers' bal D an e c b e i s t in bal D an e c b e i s t in Cash on cre C d u it s b to a m la e n r c s e ' s1 Other credit balances debit partners' firm hand Money ba (n la e n t) c 1 es a in n a v d c e c t s o r t a u m d n e i t n s n g t a in n a v d c e c t s o r t u a m d n e i t n s n g t a b n a d n k i s n borrowed2 Free O (n th e e t) r a I i n n n a v d c p e c a t o s r r t u a m t n d n e t i e s n n r g s t ' a in n a v I c d n c e t f o s r i t u a r m m n d e t i s n n g t I a n c ( c c n o a e u p t) n it t a s l 1936—Tune 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 December 677 12 99 204 427 281 54 22 5 247 1941—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 October 628 9 102 186 414 255 74 16 7 217 November 625 9 100 195 409 264 72 15 8 217 December 600 8 86 211 368 289 63 17 5 213 1942—January 547 8 74 219 308 274 72 18 6 209 February 534 8 74 203 307 262 66 18 5 206 March 531 8 70 195 306 249 67 16 4 201 April 515 8 68 195 300 247 61 16 5 196 May 502 8 79 177 300 238 59 [16 3 194 June 496 9 86 180 309 240 56 16 4 189 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. to be taken as representing the actual net capital of the reporting firms. Back figures —See BULLETIN for March 1938, p. 196, and (for data in detail) Annual Report for 1937 (table 69). 824 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OPEN-MARKET MONEY RATES IN NEW YORK CITY COMMERCIAL LOAN RATES [Per cent per annum] AVERAGES OF RATES CHARGED CUSTOMERS BY BANKS IN PRINCIPAL CITIES Yields on U. S. . Government securities [Per cent per annum] mo Y w n e e th a e , k r , or m m p 4 P c o a e r o n t p i r m o m c t e h i - r 6 e a s , l l a a b P d c n a e a r c 9 c i r n y e m 0 e s k s p ' s l - e t , - c S l h n a c o e r t e a l a o e x a s w n l - c * n - l g k - e m bi o 3 l n - ls t 3 h d N C e o 1 c n ( e o b 9 f d a e r v 4 t u t t s i e 2 . e i n s e f d ) s 1 - i - - , t 3 a n y - x o t e o a t a e - b r 5 s le 1 1 1 9 9 9 3 3 3 4 6 5 a a a v v v e e e r r r a a a g g g e e e 1 1 1 , , 1 T 9 3 2 2 o . . . c 4 9 6 t i a 5 3 8 ti l es Y N 2 1 1 C . . . o e 7 7 i 4 t r w 2 6 5 y k E e 7 N r c a 3 3 3 n o i o s . . . t 0 3 7 r t i t a h e e t 4 9 1 h n s e rn - d r 1 W e 1 r c 3 3 4 e n S i . . . t s 4 7 3 o i a t e 0 6 2 e u n s r t d n h- 1937 average1 2.59 1.73 2.88 3.25 1939 average „ „.. .44 1.00 .023 1938 average1 2.53 1.69 2.75 3.26 1940 average ,.. .44 1.00 .014 1939 average 2.78 2.07 2.87 3.51 1941 average ,..... .44 1.00 .103 .76 1940 average „..... 2.63 2.04 2.56 3.38 1941—June....,..,..,.. .44 1.00 .089 .68 1941 average , 2.54 1.97 2.55 3.19 July.... „..„.. .44 1.00 .097 .67 Monthly figures1 Aug .44 1.00 .108 .62 1938—October 2.57 1.70 2.90 3.21 Sept .44 1.00 .055 .62 November «. „. 2.49 1.70 2.68 3.20 Oct.............. .44 1.00 .049 .72 December „ „. „. 2.60 1.70 2.95 3.23 Nov .44 1.00 .242 .90 1939—January ., ,. „ 2.64 1.73 2.97 3.32 Dec .44 1.00 .298 1.02 February 2.52 1.70 2.69 3.26 1942—Jan „„.„. .44 1.00 .214 .96 Quarterly figures Feb .44 1.00 .250 .93 1939—March 2.95 2.13 3.05 3.77 Mar .„..,.. .44 1.00 .212 .93 June 2.91 2.15 3.05 3.62 Apr „....,. .44 1.00 .299 .45 .98 September 2.68 2.04 2.78 3.31 May „. .44 1.00 .364 .49 1.03 December 2.59 1.96 2.59 3.32 June..... .^^^ .44 1.00 .363 .46 41.15 1940—March 2.65 2.03 2.67 3.35 Week ending: June 2.59 2.00 2.49 3.38 J Ju u l n y e 2 4 7 .j;3; ; 5 ; S „ . . 1 1. . 0 0 0 0 . . 3 3 6 6 5 0 . . 4 4 4 5 1 1 . . 1 1 7 7 D Se e p c t e e m m b b e e r r 2 2. . 5 6 9 8 2 2 . . 1 0 4 0 2 2 . . 5 5 6 3 3 3. . 3 4 6 3 July 11 I 1.00 .365 .44 1.19 1941—March 2.58 2.06 2.53 3.25 July 18 1.00 .368 .43 1.20 June 2.55 1.95 2.58 3.23 July 25 1.00 .369 .41 1.21 September , 2.60 1.98 2.62 3.29 December 2.41 1.88 2.45 2.99 1 Monthly figures are averages of weekly prevailing rates. 1942—March ....... 2.48 1.85 2.48 3.20 2 The average rate on 90-day stock exchange time loans was 1.25 per June 2.62 2.07 2.56 3.34 cent during the entire period. 3 Rate on new issues offered within period. Tax-exempt bills prior to March 1941; taxable bills thereafter. 1 Prior to March 1939 figures were reported monthly on a basis not strictly 4 Number of issues included increased from 2 to 3 on June 5. comparable with the current quarterly series. Back figures.—See Annual Report for 1937 (tables 43 and 44). Figures Back figures —See November 1939 BULLETIN, pp. 963-969 for description for Treasury bills and Treasury notes available on request. and for back figures. BOND YIELDS * [Per cent per annum] U. S. Corporate (Moody 's)£ Government2 High- Year, month, or week M ip u a n l i 3 c- c g o r r a p d o e - By ratings By groups Partially rate4 Total ex t e a m x- pt Taxable Aaa Aa A Baa In tr d i u a s l - R ro a a il d - P ut u i b li l t i y c Number of issues 2-6 2 15 5 120 30 30 30 30 40 40 40 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 1941 average 1.95 2.10 2.67 3.34 2.77 2.94 3.30 4.33 2.95 3.95 3.11 1941—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 September.. 1.94 1.99 2.64 3.30 2.75 2.91 3.24 4.30 2.88 3.95 3.07 October 1.88 1.91 2.61 3.27 2.73 2.87 3.21 4.28 2.85 3.93 3.05 November 1.85 2.22 1.90 2.57 3.26 2.72 2.86 3.19 4.28 2.85 3.91 3.04 December... .=.. 1.97 2.37 2.25 2.68 3.35 2.80 2.95 3.27 4.38 2.94 3.99 3.12 1942—January ........ 2.01 2.37 2.33 2.76 3.35 2.83 2.96 3.30 4.29 2.97 3.93 3.13 February 2.09 2.39 2.55 2.80 3.35 2.85 2.98 3.29 4.29 2.98 3.94 3.15 March 2.00 2.35 2.58 2.80 3.37 2.86 3.00 3.32 4.30 3.00 3.94 3.17 April 1.98 2.34 2.44 2.77 3.34 .2.83 2.98 3.30 4.26 2.96 3.95 3.13 May 1.97 2.35 2.45 2.76 3.36 2.85 3.00 3.31 4.27 2.97 3.97 3.13 June 61.97 2.33 2.38 2.75 3.37 2.85 3.01 3.31 4.33 2.97 4.03 3.12 Week ending: June 27 2.01 2.34 2.35 2.75 3.37 2.84 3.01 3.30 4.34 2.96 4.04 3.12 July 4 2.00 2.34 2.35 2.75 3.37 2.83 3.00 3.29 4.33 2.96 4.03 3.11 July 11 2.00 2.34 2.35 2.74 3.36 2.83 3.00 3.29 4.31 2.95 4.02 3.10 July 18 2.00 2.34 2.33 2.74 3.35 2.83 2.99 3.28 4.30 2.94 4.02 3.09 July 25 2.00 2.34 2.30 2.74 3.35 2.83 3.00 3.27 4.30 2.94 4.02 3.09 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 issues due or callable in more than 12 years. 3 Standard and Poor's Corporation. 4 U. S. Treasury Department. 5 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. 6 On June 15 number of issues included decreased from 5 to 4. 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. AUGUST 194Z Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SECURITY MARKETS1 Bond prices Stock prices6 Corporate4 Common (index 1935-39 = 100) of trading? Year, month, or week m U G e e r . o n n S v - t . - * M i u p n a i l3 c- H gr i a g d h e - Medi I u n m d u a s n - d lo R w a e il r - -grad P e ublic fau D l e t - ed fe P r r r e e - dfi Total In tr d i u al s- R ro a a il d - P ut u i b li l t i y c ( s s i h a n n a r d t e h s s o o ) u f - Total trial road utility N'lTnher of issues 2-6 15 15 50 10 20 20 15 15 402 354 20 28 1939 average 105.2 116.3 113.8 89.5 91.2 78.1 99.3 13.8 167.5 94 95 75 99 977 1940 average 107.2 121.2 115.9 94.8 97.3 83.8 103.5 14.0 169.2 88 88 71 96 767 1941 average 111.0 129:0 117.8 98.9 103.9 86.9 106.1 21.9 171.9 80 80 71 81 629 1941—June.. 111.5 129.5 117.7 99.2 103.3 87.9 106.3 21.6 168.9 80 80 71 82 463 July 111.7 130.4 118.7 99.9 104.8 87.8 107.1 23.9 173.1 83 84 74 82 757 August » < 111.1 131.0 118.5 99.6 104.9 86.8 107.3 24.9 174.3 83 84 74 81 473 September . ..,... 111.1 131.2 118.1 98.0 105.1 84.5 107.2 24.4 173.4 84 85 73 81 599 October 112.0 133.0 118.8 99.2 105.3 85.0 107.2 25.1 172.1 80 82 70 79 557 November . ..... 112.4 133.4 119.2 99.4 105.9 84.9 107.4 24.8 170.5 77 79 68 75 792 December „.. 110.7 125.9 117.5 97.4 105.0 82.4 104.7 21.9 168.7 72 74 61 66 1,542 1942—January 110.1 124.4 117.5 99.2 106.7 86.9 104.1 24.1 166.3 73 74 69 66 565 February 108 9 120.1 117.1 99.6 106.9 87.7 104.4 25.6 165.1 70 71 68 65 404 March 110.2 119.7 116.7 98.8 106.1 88.6 101.8 27.6 159.8 66 67 65 61 363 April 110.5 122.1 117.8 99.3 107.1 88.4 102.3 26.7 154.8 63 65 61 57 336 May 110.7 122.1 117.7 98.9 107.4 87.1 102.2 26.4 156.3 63 65 60 57 323 June 8110.7 123.3 118.0 98.1 107.7 83.0 103.5 24.0 159.2 66 68 59 59 316 Week ending: June 27 110.1 123.9 118.4 98.3 107.6 82.6 104.5 23.7 159.5 65 68 58 57 262 July 4 110.2 123.9 118.8 98.6 107.4 83.7 104.7 24.9 160.2 66 68 60 57 283 July 11 110.2 123.9 119.0 99.0 108.2 84.1 104.8 25.2 161.3 69 71 63 59 512 July 18 110.2 124.3 119.0 99.0 108.6 83.8 104.4 25.3 162.1 70 72 64 59 312 July 25 110.2 124.9 118.9 98.9 108.7 83.7 104.3 25.7 163.2 69 72 64 59 304 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 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 Prices derived from averages of median yields, as computed by Standard and Poor's Corporation. 5 Prices derived from averages of median yields on noncallable high-grade stocks on basis of a $7 annual dividend. 6 Standard and Poor's Corporation. 7 Average daily volume of trading in stocks on the New York Stock Exchange. 8 Number of issues decreased from 5 to 4 on June 15. Back figures.—For United States Government bonds, see November 1940 BULLETIN; for municipal bonds, see Annual Report for 1937 (table 79). NEW SECURITY ISSUES [In millions of dollars] For new capital For refunding Total Domestic Domestic (new Total Total Year or month f a i u r n n e n g - d d ) - m e ( a f d e i o n o g s r d - n t - i ) c Total S n m a p t i n a c a u d t l i - e - a F c e g i e r e e a d n s l - 1 - Total Co B n r a p o o n n o t d e d r s a s te Stocks F e . i ° g r n " 21* m e ( a f i e d o n g o s r d n - t - i ) c Total S n m a p t i n a c a u d t i l - e - a F c e g i e r e e a d n s l - 1 - Total Co B n r a o o p n n t o d e d r s a s te Stocks e F i o gn r- 2 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 35 774 765 136 317 312 312 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 4,803 1,951 1,948 751 461 736 601 135 2 2,852 2,852 482 344 2,026 1,834 193 1941 ,..,.., r5,539 r2,848 r2,847 516 1,272 rl,059 r889 r170 1 r2,691 r2,687 433 698 rl,557 rl,430 126 4 1941—June r882 r520 519 59 370 r91 77 14 362 362 26 223 113 108 5 July r616 r300 r299 40 212 r47 r34 13 316 316 14 216 r87 76 11 August 471 360 360 33 327 354 4 110 110 11 25 74 73 2 September .. 273 65 65 31 34 22 12 209 209 20 27 161 156 6 October r300 132 132 29 r104 50 54 167 167 35 35 97 96 1 N D o e v ce em m b b e e r r... r2 2 4 3 1 8 r1 1 3 1 8 1 r1 1 3 1 8 0 4 2 2 1 20 r7 8 7 9 r6 8 2 3 r15 6 r1 1 0 2 2 7 r1 1 0 2 2 7 5 1 3 8 3 2 2 5 r5 4 9 2 r5 2 7 9 1 2 3 1942—January 333 182 182 83 11 87 32 55 151 151 35 34 83 82 1 February... r180 r123 r123 30 37 r56 r37 19 57 57 11 27 19 19 March r197 r109 r109 22 9 r79 r61 18 88 88 27 21 39 39 April 262 158 158 51 10 97 91 6 104 104 5 81 19 19 May 180 128 128 22 3 103 94 9 52 52 8 39 6 6 June 201 96 96 18 2 77 69 8 105 105 15 28 62 55 7 r Revised. 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. 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). 8x6 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NEW CORPORATE SECURITY ISSUES1 PROPOSED USES OF PROCEEDS, ALL ISSUERS [In millions of dollars] Proposed uses of net proceeds Year or month Est g i r m o a ss ted Esti n m e a t ted New money Retirement of securities Repayment proceeds£ proceeds3 of Other Total e P q l u a i n p t m a e n n d t W c o a rk p i i n ta g l Total Bo n n o d t s e a s nd Pr s e t f o e c r k red other debt purposes 1934 530 515 57 32 26 362 362 84 11 1935 2,698 2,629 243 111 131 2,193 2,121 ii 170 23 1936 4,781 4,637 858 380 478 3,575 3,349 226 154 49 1937 2,374 2,303 1,046 574 472 1,106 916 190 111 39 1938 2,324 2,279 779 * 504 275 1,254 1,167 87 239 7 1939 2,177 2,128 325* 170 155 1,708 1,650 59 69 26 1940 2,786 2,723 604 424 180 1,927 1,798 128 174 19 1941 2,524 2,480 797 639 158 1,528 1,448 80 102 53 1940—September .. 108 106 43 35 9 57 55 2 5 1 October 373 366 45 39 6 316 312 5 2 2 November 148 145 65 25 41 73 59 15 6 1 December 578 567 193 158 35 367 318 50 6 1 1941—January 270 265 48 44 4 210 184 26 6 1 February 151 148 29 25 5 103 101 2 15 March 268 263 67 55 12 179 171 8 15 2 April 145 142 27 18 9 111 90 21 2 2 May 265 259 66 51 15 188 188 4 June 234 229 80 69 11 132 127 5 16 1 July 117 114 40 31 10 60 58 2 10 4 August 408 404 185 168 17 200 198 2 14 5 September 172 170 31 20 11 137 135 2 2 October 227 224 91 64 26 118 117 1 11 5 November 140 137 80 60 20 38 37 1 19 December 128 125 51 34 17 54 44 10 3 17 1942—Tanuarv 164 161 71 38 33 80 80 9 February 78 76 40 34 5 23 12 11 2 11 March 102 100 39 35 4 46 41 5 15 April 121 118 70 15 55 12 12 36 May 126 124 59 27 33 11 11 53 1 June 142 139 72 57 15 60 55 5 5 2 PROPOSED USES OF PROCEEDS, BY MAJOR GROUPS OF ISSUERS [In millions of dollars] Railroad Public utility Industrial Other Year or month Total Retire- All Total Retire- All Total Retire- All Total Retire- All net New ment of other net New ment of other net New ment of other net New ment of other pro- money securi- pur- pro- money securi- pur- pro- money securi- pur- pro- money securi- purceeds ties poses* ceeds ties poses4 ceeds ties poses4 ceeds ties poses* 1934 172 21 120 31 130 11 77 42 62 25 34 2 151 131 19 1935 . . . 120 57 54 10 1,250 30 1,190 30 774 74 550 150 485 81 399 4 1936 774 139 558 77 L,987 63 1,897 27 1,280 439 761 80 597 218 359 20 1937 . . 338 228 110 1 751 89 611 50 1,079 616 373 90 135 112 13 10 1938 54 24 30 1,208 180 943 86 831 469 226 136 185 106 56 24 1939 182 85 97 ,246 43 1 157 47 584 188 353 43 115 9 101 5 1940 . 319 115 186 18 1,180 245 922 13 961 167 738 56 263 78 81 104 1941 361 253 108 3ftfi 309 972 25 715 211 402 103 98 24 47 27 1940—September 11 10 2 58 11 47 1 35 22 8 5 1 1 October 46 16 31 213 9 202 2 105 19 84 2 2 1 November 27 22 1 4 18 1 16 1 37 4 32 1 64 39 24 December 12 12 365 144 219 2 171 26 141 4 19 12 7 1941—January 32 27 5 122 15 105 2 108 6 98 5 2 1 1 February 71 21 50 37 1 36 20 7 13 20 1 4 15 March g 3 5 184 46 136 2 71 17 37 16 1 1 April 2 2 71 17 53 66 7 56 3 4 3 1 May 45 45 144 6 138 1 69 15 50 3 June 58 51 7 110 9 97 4 61 20 28 13 July 23 23 33 7 26 54 9 35 10 5 1 4 August 24 24 316 142 173 59 18 27 14 6 1 5 September 42 7 35 102 6 96 1 24 17 6 1 1 1 October 25 21 4 80 11 67 2 74 48 12 14 44 10 34 November 1 1 56 45 10 1 71 29 24 18 8 4 4 December 28 28 51 3 36 12 38 17 15 6 9 3 3 2 1942—January 10 10 107 18 80 9 43 43 1 1 February 4 4 34 25 10 38 11 "13" March 6 6 48 8 40 46 25 6 15 April 11 11 107 59 12 36 May 21 10 5 6 102 49 6 48 1 June 9 3 6 69 17 49 3 61 51 6 4 1 1 1 Estimates of new issues sold for cash in the United States. Current figures subject to revision. 2 Gross proceeds are derived by multiplying principal amounts or number of units by offering price. 3 Estimated net proceeds are equal to estimated gross proceeds less cost of flotation, i.e., compensation to underwriters, agents, etc., and expenses. 4 Includes repayment of other debt and other purposes. [ Source: Securities and Exchange Commission. For description of data and back figures, see pp. 217-219 of the March 1942 BULLETIN. 8z AUGUST 194Z 7 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

QUARTERLY EARNINGS AND DIVIDENDS OF LARGE CORPORATIONS INDUSTRIAL CORPORATIONS [In millions of dollars] Net profits,1 by industrial groups P d r i o v f i i d ts e n a d n s c1 Year or quarter Total s I a t r e n o e d n l c M e h r i a y n - - t b o A i m l u e o - s - p e O t m q r t o t i a u r e o h n t n i n e a p s t r - - - f m p e N u a r r e o c r n o t o t n a d d s u - l - s s O g d b o u t o h l r e d e a r s - t F b o a a e o b n g v o a e d e d c s r c s - , o r p e a i O r n f n o i i g d n d l - , c I h n c tr e a d i m l u a s l s i- - O g d n o u b t o h o r l n e a e d - - r s c n s M e i e e c l o r i e l v s u a s - - - s pr N of e it t s , 1 fe P D r r r e i e - v d iden C m d o o s m n - Number of companies 629 47 69 15 68 77 75 49 45 30 80 74 152 152 152 1939 1,465 146 115 223 102 119 70 151 • 98 186 134 122 847 90 564 1940 1,818 278 158 242 173 133 88 148 112 194 160 132 1,028 90 669 1941. 2,169 325 193 274 227 153 113 159 174 207 187 159 1,144 92 705 Quarterly 1939—i 284 13 20 64 23 25 S 31 14 36 28 24 173 21 114 2 311 14 25 61 21 22 16 36 21 40 29 27 185 22 119 3 320 35 26 12 20 30 23 44 26 45 32 29 167 21 125 4 550 85 44 86 39 42 23 41 37 66 45 42 321 26 207 1940—1 422 47 33 69 41 33 14 34 34 46 41 29 246 21 136 2 412 51 39 53 36 29 21 38 30 45 41 30 230 21 158 3 ... 396 79 34 17 33 30 25 33 25 52 39 29 211 22 158 4 588 101 52 103 63 40 28 43 24 51 39 44 342 25 217 1941—1 510 86 44 79 53 39 23 36 29 49 44 29 286 22 150 2 549 84 48 73 56 36 28 43 42 53 48 36 297 23 165 3 560 81 46 60 56 38 30 44 56 52 49 46 284 23 170 4 550 72 55 61 62 40 32 37 46 52 46 48 276 24 221 1942—1 423 65 38 34 60 35 20 32 35 39 38 28 206 21 134 PUBLIC UTILITY CORPORATIONS [In millions of dollars] Railroad2 Electric power Telephone8 Year or quarter O re p v i e n e r n g a u t e - i I b n n e t c c a f o o o x m r m 4 e e e All r N o e a t d s income1 d D e i n v d i- s O re p v i e e n r n g a u t e - I i b n n t e c c a f o o x o m m 4 re e e inc N o e m t e1 d D en iv d i s - 6 r O e p v i e n e r n g a u t e - in N co e m t e , 1 d D en iv d i s - 6 Number of companies. 28 28 28 28 33 33 33 1939.. 3,995 126 93 126 692 159 137 116 1,179 198 178 1940.. 4,297 249 189 159 735 177 142 118 1,250 202 167 1941. 5,347 672 502 186 799 202 133 115 1,382 196 172 Quarterly 1939—1. S98 -38 -43 21 175 46 39 19 287 46 21 2. 906 -43 -47 23 166 37 32 19 295 50 20 3. 1,058 68 58 21 167 34 30 19 295 50 16 4., 1,133 139 126 61 184 43 36 22 303 52 15 1940—1. 986 -3 -12 25 187 48 41 19 304 52 16 2. 1,010 15 3 29 176 42 34 19 310 52 16 3. 1,130 92 71 29 177 41 31 19 310 46 15 4.. 1,171 145 127 78 194 47 37 20 326 53 10 1941—1. 1,152 94 69 22 201 59 43 18 330 48 16 2.. 1,272 144 101 36 191 48 33 24 345 50 15 3., 1,468 267 190 31 196 46 25 18 347 46 16 4.. 1,454 167 142 97 211 50 34 19 359 51 20 1942—1., 1,483 178 95 24 216 64 33 369 52 18 1 "Net profits" and "net income" refer to income after all charges and taxes, and before dividends. 2 Class I line-haul railroads. * Net income and dividend figures exclude dividends received by the American Telephone and Telegraph Company. * After all charges and taxes except Federal income and excess profits taxes. 5 Quarterly dividend data are not available for all companies in the group and, therefore, do not add to the yearly totals shown. 6 Includes roads in receivership or trusteeship at beginning of the year. 7 Not available. Sources: Interstate Commerce Commission for railroads; Federal Communications Commission for telephone companies; published reports for industrial and electric power companies. Figures for the current and preceding year subject to revision. For description of data and back figures, see pages 214 to 217 of the March 1942 BULLETIN. FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

UNITED STATES GOVERNMENT DEBT—VOLUME AND KIND OF DIRECT SECURITIES [On basis of daily statements of United States Treasury. In millions of dollars] Marketable public issues1 Nonmarketable public issues End of month T g d r o e o b t s a t s l i b n T e d t a o e e r r t b i a e n t l s g t- Total2 Tre b a il s l u s ry in c C d a n e e te r e b t s s i t f s e o i d - f - Treasury Tr b e o a n s d u s ry Total2 s b a U o v . n i S n d . g s s T ta r x e a n s o u t r e y s S i p ss e u c e ia s l i b n N e d t a e e o r r b n i e n t - s g t 1938—June... 37,165 36,576 32,344 1,154 9,147 21,846 1,556 1,238 2,676 589 Dec.... 39,427 38,899 34,004 1,306 8,496 24,005 1,739 1,442 3,156 528 1939—June... 40,440 39,886 33,965 1,308 7,243 25,218 2,151 1,868 3,770 554 Dec.. . 41,942 41,445 34,735 1,455 6,203 26,881 2,480 2,209 4,231 497 1940—June... 42,968 42,376 34,436 1,302 6,383 26,555 3,166 2,905 4,775 591 Dec... 45,025 44,458 35,645 1,310 6,178 27,960 3,444 3,195 5,370 566 1941—June... 48,961 48,387 37,713 1,603 5,698 30,215 4,555 4,314 6,120 574 July.... 49,513 48,965 37,713 1,603 5,698 30,215 4,929 4,649 6,324 548 Aug.... 50,921 50,371 37,667 1,604 5,698 30,169 6,234 4,908 1,037 6,470 550 Sept.... 51,346 50,791 37,368 1,305 5,698 30,169 6,765 5,132 1,343 6,658 556 Oct 53,584 53,040 38,869 1,404 5,509 31,759 7,507 5,394 1,818 6,664 544 Nov.... 55,040 54,536 39,677 1,703 6,012 31,765 8,052 5,620 2,136 6,806 504 Dec... 57,938 57,451 41,562 2,002 5,997 33,367 8,907 6,140 2,471 6,982 487 1942—Jan 60,012 59,531 42,271 2,101 5,591 34,383 10,196 7,198 2,697 7,063 481 Feb 62,381 61,895 43,700 2,002 5,591 35,912 11,004 7,893 2,807 7,190 486 Mar.... 62,419 61,940 43,329 1,652 5,571 35,910 11,278 8,436 2,536 7,333 480 Apr 64,961 64,496 45,137 1,953 1,507 5,571 35,910 12,002 8,951 2,744 7,358 465 May.... 68,571 68,108 47,615 2,257 1,507 5,571 38,085 12,976 9,569 ' 3,100 7,518 462 June... 72,422 71,968 50,573 2,508 3,096 6,689 38,085 13,510 10,188 3,015 7,885 454 1 Including amounts held by Government agencies and trust funds, which aggregated $2,425,000,000 on May 31, and $2,445,000,000 (preliminary) on June 30, 1942. 2 Total marketable public issues includes Postal savings and pre-war bonds, and total nonmarketable public issues includes adjusted service and depositary bonds not shown separately. SECURITIES FULLY GUARANTEED BY UNITED STATES SALES OF UNITED STATES SAVINGS BONDS GOVERNMENT, BY ISSUING AGENCIES* [In millions of dollars] [In millions of dollars] Interest-bearing Amount funds ieceived from salesduring out- month Month standing End of month a s m T o t i a o n o u n g t u t a d - 2 n l - t Total M F p F S t e o i a e o r o f r r a d r r n m a l t ! - - - H O p L C t e o i o o w r o o s r m a r n ' a n n - - e - R s n p C t t e t a F o i r i c o n o o u i r - o n c r a n c - n e - - - m C C p C t o r o i o o e d o r m r d n a i - t - i - y t Other 1941— J J A M u u u l n a y g e y ust a m t 4 4 4 4 e o , , , , n n 0 9 3 6 d 0 0 1 4 t h 8 8 4 9 o 1 f se A r 3 3 3 2 i 4 1 7 6 1 e 1 2 5 0 6 s 2 ^ Se 1 1 1 1 E r 1 4 0 0 i 8 5 1 3 es Se 2 3 2 2 F r 0 8 9 7 ies Se 2 1 1 1 G r 1 2 7 8 i 1 8 0 e 3 s September.. 5,132 232 105 18 109 1938—june 4,853 1,410 2,937 299 206 1 N O o ct v o e b m er ber... 5 5 , , 6 3 2 9 0 4 2 2 3 7 4 1 1 11 2 0 3 2 1 3 9 1 1 0 2 5 5 Dec 4,992 1,388 2,888 509 206 1 December... 6,140 529 341 33 154 1939—June 5,450 1,379 2,928 820 206 117 Dec 5,704 5,621 1,269 2,731 1,096 407 118 1942—January 7,198 1,061 667 78 316 1940—June 5,529 5,498 1,269 2,603 1,096 407 122 February.... 7,893 703 398 52 253 Dec 5,917 5,901 1,269 2,600 1,097 696 239 March 8,436 558 338 41 179 April 8,951 531 327 40 164 1941—June 6,370 6,360 1,269 2,409 1,741 696 244 May 9,569 634 422 42 170 July 6,939 6,930 1,269 2,409 2,101 907 243 June , 10,188 634 433 41 160 Aug 6,937 6,928 1,269 2,409 2,101 905 243 O Se c p t t 6 6 , ,9 3 3 3 7 8 6 6, , 9 9 3 2 0 9 1 1 , , 2 26 6 9 9 2 2 , , 4 4 0 0 9 9 2 2 , , 1 1 0 0 1 1 9 9 0 0 5 5 2 2 4 4 4 4 1 At current redemption values except Series G, which is stated at par. Nov 6,324 6,316 1,269 2,409 1,802 701 135 Difference between "Funds received" and month to month changes in Dec 6,324 6,317 1,269 2,409 1,802 701 136 "Amounts outstanding" represents the difference between accrued increases 1942—Jan.. 5,703 5,673 937 2,409 1,492 701 134 in redemption values and redemptions of bonds during the month. Feb 5,696 5,673 937 2,409 1,492 701 135 2 Includes figures for series A-D not shown separately; these series have Mar 5,690 5,666 930 2,409 1,492 701 135 not been issued since April 1941. 5,688 5,666 930 2,409 1,492 701 135 May 5,687 5,667 930 2,409 1,492 701 136 June 4,568 4,549 930 1,563 1,219 701 136 1 Excluding obligations held by U. S. Treasury and reflected in the public debt. 2 Figures on matured debt were not published prior to September 1939. 8x9 AUGUST 1941 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, JUNE 30, 1942 [In millions of dollars! Direct securities maturing Fully guaranteed securities maturing Total Treas- fully Maturing or callable Total T b u re i r l y a ls s- d C o c e n f e a b e r t t t s I e i e s n f s d - i- - T n u r o e r t y a e s s - Tr u e r a y s B - on P d P r s a o e n - s d w ta a l r d b a c u o b u a e n l r l y e d l o - 1 s r Total2 F C M F a e g o t d a a o i r e r g o p r m r e n t o a - l r- O C H a w o L t o r o n i p m o a e o n n r e r s - ' F C R s a i o n t t e t i r r i c a o p u o o n n o n c n c - r - e - C m C a C o o t r o r i e d p o m d i n o t i - y t r- A Ho u U i u t . t h y s o S in . r g - ca a d s g l e n u l u t c a t e i a e u e b r e s r o l - d i e r - 1 Savings Within 1 year 6,874 2,508 3,096 1,270 454 642 29 323 289 642 1 to 5 years 9,364 5,419 3,914 30 8,055 2,176 755 896 412 114 3,885 5 to 10 years 9,461 9,438 23 17,126 1,614 835 779 10 to 20 years 18,872 18,730 142 9,734 Over 20 years 6 003 6,003 2,716 95 95 Total 50,573 2,508 3,096 6,689 38,085 196 38,085 4,527 930 1,563 1,219 701 114 4,527 1942—Before Oct. 1 2,850 2,508 342 33 29 4 33 Oct. 1-Dec. 31 1,739 i, 507 232 320 320 320 1943—Jan. 1-Mar. 31 1,654 1,588 66 Apr. 1-June 30 629 629 454 289 289 289 July 1-Sept. 30.... 279 279 324 324 324 Oct. 1-Dec. 31 421 421 1,401 1944 1,849 1 849 2,555 686 571 114 2,394 1945 3,191 1,249 1,941 1,755 412 412 1,167 1946 3,156 1,621 1,519 16 2,344 1947 2,384 2,370 14 1,460 755 755 1948 1,489 1,487 2 3,361 1949 821 819 2 4,584 835 835 1950 1,689 1,687 2 1,186 1951 3,537 3,530 7 4,011 1952 2,454 2,436 18 2,524 779 779 1953 2,932 2,904 27 725 1954 3,709 3,687 22 681 1955 3,526 3,491 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 1962 882 1963 919 919 1964 95 95 1965 , 1,485 1,485 1967 882 882 2,716 1972 2,716 2,716 1 Securities not callable prior to maturity are shown as of date of maturity. 2 Excluding debentures of Federal Housing Administration, which amounted to $21,000,000 on June 30. OWNERSHIP OF UNITED STATES GOVERNMENT SECURITIES, DIRECT AND FULLY GUARANTEED [In millions of dollars] Held byFederal Privately held1 agencies and trust funds Held Other investors2 Total End of month s i e b n c e t u e a r r r i e i t n s ie g t- s S is p s e u c e i s al P is u s b u l e ic s F R B e e a d s n e e k r r v a s l e Total M b e a m nk b s er m b O c e a o t r n h c m k e ia s - r l M s b a u v a i t n n u k g a s s l p I a c n a n o n s i m u c e e r s - - 2 M is a a s b r u k l e e e s t 2 - m N a a r b o k l n e e - tissues 1932—June 19,161 309 261 1,784 16,807 5,628 590 680 800 9,100 1933—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 ioo" 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 5,300 11,400 1,200 1938—June 41,428 2,676 2,123 2,564 34,065 12,343 ,700 2,690 5,500 10,400 1,400 December 43,891 3,156 2,198 2,564 35,973 13,222 ,850 2,880 5,700 10,700 1,600 1939—June 45,336 3,770 2,138 2,551 36,877 13,777 ,920 3,040 5,900 10,300 1,900 December 47,067 4,231 2,323 2,484 38,029 14,328 ,970 3,100 6,300 10,100 2,200 1940—June 47,874 4,775 32,292 2,466 38,341 14,722 ,830 3,110 6,500 9,300 2,900 December 50,360 5,370 32,250 2,184 40,556 15,823 ,940 3,220 6,800 9,600 3,200 1941—June 54,747 6,120 32,360 2,184 44,083 18,078 2,020 3,430 6,900 9,400 4,300 December 63,768 6,982 32,547 2,254 51,985 19,539 2,250 3,700 7,900 10,000 8,600 1942—June 76,517 7,885 3 2,716 2,646 63,270 P424.086 P42,100 p3,9Q0 ' p8,900 pl 1,200 13,100 v Preliminary. 1 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. 2 Holdings of insurance companies included with "Other investors" prior to 1932. 3 Excluding holdings of production credit associations and joint stock land banks. 4 Figures for member banks include and other commercial banks exclude holdings, amounting to 356 million dollars, of J. P. Morgan and Co., which was admitted to Federal Reserve membership in April, 1942. NOTE.—For end of June figures 1916-1931, see BULLETIN for July 1941, p. 664. 830 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SUMMARY OF TREASURY OPERATIONS [On basis of daily statements of United States Treasury. In millions of dollars] General and special accounts Increase or de- Trust crease during ac- period Receipts Expenditures (excl. debt retirements) counts etc.,1 Excess excess Period c ta I o n x m e - e s i c n r M n e e e n t l v o e a i l s a e u r l - - - - s s S t e a i o c t x 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 c N e r i e p e - t ts I d n e e o t s e b n t r t - t f i N e d o n e a n s - - a e l A m t j c A u u g u e r s d r l n a t - - i - l - t p m r U e e l m o e l n i y n e - - - t f T c f t o e r r a r a u u s c n n s - s t t t o s - o A th l e l r Total d e c ( o i x + e t f p u i ) p e r r o e t n e s r s - - p ( c o t e + u e f e n ) i r x p d r e o - e t i s r s - - F a G b e u n a r e c n a l n e - d l - 1 d G e r b o t s 2 s nue Pro- etc. gram Fiscal year ending: June 1939... 2,189 2,232 740 507 5,668 5,165 941 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 1,041 1,657 1,002 1,919 226 3,153 8,998 -3,611 +136 -947 +2,528 June 1941... 3,470 2,967 932 900 8,269 7,607 1,111 6,301 877 1,694 325 2,403 12,711 -5,103 -148 +742 +5,994 June 1942.... 7,960 3,847 1,194 666 13,668 12,799 1,260 25,954 790 1,193 375 2,825 32,397 -19,598 -3,506 +358+23,461 1941—June 916 265 32 64 1,277 1,276 339 832 22 131 10 194 1,528 -252 -259 +729 +1,241 July 84 268 48 56 456 413 25 966 44 132 169 262 1,598 -1,185 +599 -34 +551 Aug 59 269 173 54 554 397 9 1,129 27 106 14 245 1,529 -1,133 -2 +274 +1,408 Sept 780 261 37 58 1,136 1,135 169 1,327 32 108 6 230 1,874 -739 -293 -607 +425 Oct 68 314 49 57 489 445 75 1,534 58 109 45 262 2,083 -1,637 -225 +376 +2,238 Nov 66 436 181 47 730 564 15 1,446 72 95 10 220 1,858 -1,294 -484 -322 +1,456 Dec. 767 353 41 53 1,214 1,212 232 1,847 113 115 9 226 2,542 —1,329 —328+1,241 +2,898 1942—Jan. 133 369 53 59 614 578 32 2,101 106 94 42 254 2,628 —2,050 —633 —610 +2,073 Feb 283 340 257 58 937 758 12 2,201 97 92 9 217 2,629 -1,871 +114 +612 +2,369 Mar 3,083 364 49 52 3,548 3,547 205 2,797 81 96 22 220 3,421 +126 -234 -69 +39 Apr... . 335 305 43 49 732 695 77 3,231 66 91 48 241 3,753 —3,058 — 126 —642 +2,542 May 216 270 222 56 764 563 19 3,553 62 82 237 3,953 —3 391 —257 —39 +3,609 June 2,086 298 42 67 2,494 2,492 390 3,823 31 72 1 212 4,530 -2,037 -1,635 +179 +3,852 Details of trust accounts, etc. General Fund of the Treasury (end of period) Soc a ia c l c o S u e n cu t0 rity Net ex- All other Assets Balance in General Fund penditures Period c N e r i e e p - t ts I m nv e e n s t t s p t e u E n r x d e - s i- c i a G n i o g n m o u e g c v n n e h e t a n c e s r c i t c n e - o k - s f - ce R ip e- ts I m nv e e n s t t s - p t E e u n x r d - e i s - Total R F p e e D o s d i s e n e e i r - t r v s a e l d s p p e D o p e i s n c o e i i - s t a s i l - a O s t s h e e ts r l T i t a o i b e t i a s l l i- Total I m n g o c e o n r n l e d t - S io e r i a g g n e - W a b i n o n a c r g l- e k- Banks taries Fiscal year ending: June 1939 1,477 911 561 •768 440 115 209 3,087 1,022 776 1,288 248 2,838 142 536 2,160 June 1940 1,662 1,016 643 •33 458 98 260 2,038 254 805 979 147 1,891 143 585 1,163 June 1941 1,958 1,200 741 218 674 138 484 2,812 1,024 661 1,127 179 2,633 143 605 1,885 June 1942 2,327 1,705 614 3,625 857 221 527 3,443 603 1,679 1,162 452 2,991 143 619 2,229 1941—June 109 243 48 80 96 47 46 2,812 1,024 661 1,127 179 2,633 143 605 1,885 JJu lJy 171 84 46 •534 162 105 33 2,807 934 680 1,193 208 2,599 143 607 1,848 Akug 334 130 44 169 54 1 45 3,057 995 833 1,229 185 2*, 873 143 610 2420 Sept. 25 185 43 93 53 4 47 2,461 526 797 1,138 195 2,266 143 611 1,511 Oct 149 70 39 272 63 3 53 2 852 998 784 1 069 210 2 641 143 613 1*885 Nov. 359 148 40 659 45 I 41 2*544 543 947 1^ 054 225 2*319 143 614 1*562: Dec. 63 215 49 140 54 **5 47 3^816 966 1,756 1,094 256 3^560 143 615 2,802 1942—Jan.. 144 50 64 681 57 9 30 3 232 391 1,750 1,090 282 2 950 143 616 2 191 Feb 383 177 59 35 50 5 44 3,'867 748 2,054 1,064 305 3*. 562 143 617 2',802 Mar 31 139 67 75 84 9 59 3,857 525 2,231 1,101 365 3,493 143 618 2,732 Apr 112 15 59 189 73 9 39 3,216 522 1,579 1,115 365 2,851 143 618 2,089- May 422 196 54 430 53 13 40 3,198 382 1,666 1,150 386 2,812 143 619 2,050 June 136 297 51 1,417 110 69 48 3,443 603 1,679 1,162 452 2,991 143 619 2,229 1 Details given in lower section of table. 2 For details, see page 829. * Excess of receipts. •• Excess of redemptions. AUGUST 1942. 831 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

GOVERNMENTAL CORPORATIONS AND CREDIT AGENCIES [Based oncompilation by U. S. Treasury Department from reports received from organizations concerned. In millions of dollars] 1941 (End of month) 1942 (End of month) May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Assets Loans and preferred stock: Loans to financial institutions 397 417 408 407 409 409 408 434 404 396 388 380 371 Preferred stock, etc. 702 698 693 669 666 665 664 680 675 663 658 650 649 Loans to railroads SOS SOS 497 497 497 484 483 498 197 498 500 502 498 Home and housing mortgage loans 2,436 2,445 2,413 2,413 2,427 2,413 2,401 2424 2,430 2,380 2392 2,372 2,352 Farm mortgage loans 2,458 2,448 2,437 2,426 2,411 2,396 2,380 2361 2,343 2,332 2311 2,296 2,282 Other agricultural loans 830 779 754 726 717 709 732 773 780 785 789 976 811 All other loans 1472 1,511 1,553 1,690 1,738 1,957 1,933 1996 1,934 2,004 2026 2,041 2,042 Total loans and preferred stock . . 8,800 8,804 8,756 8,826 8,864 9,033 9,001 9 167 9,063 9 059 9,065 9,218 9,005 Cash AM 376 771 594 523 489 502 496 560 58? 621 645 732 U S Govt direct securities 730 flO'* 824 S14 846 895 906 884 015 947 950 966 981 Securities of Government corporations and credit agencies: Fullv guaranteed by U. S. 125 123 123 123 122 120 115 115 112 112 110 110 107 other1 .... .:/.:..::::::::::::: 17 18 17 18 17 20 26 46 54 54 55 Accounts and other receivables . *. 549 598 651 600 672 725 641 574 604 600 632 621 733 Business property 623 636 653 664 671 689 698 714 751 782 792 815 833 Property held for sale 1,392 1,497 1,567 1,625 1,710 1,805 1,879 1891 1,964 2 017 2262 2,717 3,067 Other assets 359 423 435 517 563 592 701 773 888 073 1265 1,510 1,829 Total assets other than interagency2 ,. 13,108 13,277 13,797 13,810 13,989 14,368 14,470 14,660 14,90815224 15 75016r656_ 17,343 Liabilities Bonds, notes, and debentures: Fully guaranteed by U. S .-...... 6,371 6,370 6,939 6,937 6,937 6,938 6,324 6,324 5,705 5697 5,690 5,688 5,687 Other1 1,434 1,443 1,442 1,445 1,434 1,416 1,393 1,392 1,402 1396 1,433 1,431 1,440 Other liabilities 1,492 1,604 1,761 1,741 1,859 1,952 1,974 2,049 2,111 2325 2,497 2,656 2,950 Total liabilities other than interagency2 9,297 9,417 10,142 10,123 10,231 10,306 9,690 9,765 9,219 9 418 9,620 9,776 10,078 Excess of assets over liabilities, excluding interagency transactions 3.,811 3,860 3,655 3,687 3,758 4,062 4,779 4,895 5,689 5806 6,130 6,880 7,265 U. S. Govt. interests „..,... 3,388 3,436 3,230 3,261 3,331 3,633 4,349 464 5,?56 5 37? 5,694 6,444 6,828 Privately owned interests 423 424 425 426 427 428 430 431 432 434 435 436 437 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, MAY 31,1942 [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 f o o a n e t n c d r a k s r l ed Cash d s G U e i i t r c o . i e u e S v c s r . t t - . G s i u e t t e a c i e e r u a d s r n - - A r c o e a c a t c b h o n e l e d u i e v r s n - ts B pr u o s p in e e rt s y s P h r e o l s d p a e l f e r o t r y an U G te n u e i a d d t r e e - d b b y entur O es ther States Reconstruction Finance Corporation 1,847 35 55 32 46 1,492 National defense corporations 72 6 89 1,690 Home mortgage and housing agencies: Home Owners' Loan Corporation — 1,859 349 5 3 270 2,414 Federal Home Loan Banks 181 56 63 5 1 92 RFC Mortgage Company 79 2 7 2 Federal National Mortgage Association 216 1 5 1 85 United States Housing Authority „ 365 33 7 5 127 114 Farm credit agencies: Federal Farm Mortgage Corporation.. 567 25 2 53 8 944 Federal land banks , 1,715 43 201 169 6 45 1947 Federal intermediate credit banks 282 36 44 2 297 Banks for cooperatives. 99 47 34 1 2 Production credit corporations . 82 1 12 Regional agricultural credit corporations 4 18 Commodity Credit Corporation 230 3 83 8 972 701 Farm Credit Administration . .... 258 5 Farm Security Administration 456 32 1 1 Insurance agencies: Federal Crop Insurance Corporation . 8 22 Federal Deposit Insurance Corporation 45 18 490 35 27 Federal Savings and Loan Insurance Corporation. 4 23 100 8 Federal Housing Administration. 16 44 40 1 6 21 1 Export-Import Bank of Washington 112 80 Tennessee Valley Authority 13 7 509 8 U. S. Maritime Commission 28 32 . 101 Rural Electrification Administration 340 8 Public Works Administration ».,. 90 Other.. „ ..».„... 78 15 6 22 70 2 10 Total .... „.„ 9,005 732 981 107 733 833 3,067 5,687 1,440 1 Excludes Federal land bank bonds in the amount of $737,000,000 held by Federal Farm Mortgage Corporation. FEDERAL RESERVE BULLETIN 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] 1941 1942 June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June Loans to financial institutions 145 139 134 131 127 124 118 106 107 105 105 102 100 Loans on preferred stock of banks and insurance companies 48 48 48 48 48 48 48 44 44 44 44 44 44 Preferred stock, capital notes, and debentures 429 425 410 407 405 404 401 398 393 388 381 379 378 Loans to railroads (including receivers) 470 462 461 461 448 448 462 462 462 465 466 462 462 Loans for self-liquidating projects 37 81 81 81 81 51 51 53 54 55 56 56 58 Loans to industrial and commercial businesses: For national defense 65 70 71 82 93 101 106 111 119 127 134 146 158 Other 111 109 108 106 100 103 110 106 104 102 98 97 92 Loan to Great Britain 100 125 299 299 345 345 385 385 381 378 376 Loans to drainage, levee, and irrigation districts.. 79 79 77 77 74 74 73 72 72 72 71 ' 70 70 Other loans 5 5 » 5 5 5 5 5 5 5 5 5 5 5 Securities purchased from Public Works Administration • 122 120 117 117 117 116 114 114 111 110 109 109 108 Total loans and investments, other than interagency 1,511 1,538 1,613 1,640 1,798 1,772 1,833 1,815 1 857 1 859 1,850 1,847 1,852 Preferred stock of, and loans to Export-Import Bank 174 174 174 174 174 174 174 174 174 174 174 174 174 Loans to Rural Electrification Administration.... 182 190 195 202 207 211 214 211 215 218 221 225 228 Capital stock of, and loans to RFC Mortgage Company .. ... 73 75 76 77 80 79 79 81 82 82 85 87 89 Capital stock of, and loans to Federal National Mortgage Association 102 103 105 107 109 111 112 114 115 119 120 120 119 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 companies ^ 282 327 380 527 643 727 721 785 916 1,105 1,303 1,567 1,827 Loans to Farm Security Administration .... 116 89 96 101 110 117 133 114 145 179 199 205 213 Capital stock of Federal Home Loan Banks 125. 125 125 125 125 125 125 125 125 125 125 125 125 Total loans and investments 2,573 2,630 2,772 2,962 3,254 3,325 3,400 3,428 3,638 3,869 4,085 4,358 4,635 1 Including Metals Reserve Company, Rubber Reserve Company, Defense Plant Corporation, Defense Supplies Corporation, and U. S. Commercial Company. FARM CREDIT ADMINISTRATION LOANS AND DISCOUNTS OUTSTANDING, BY INSTITUTIONS [In millions of dollars] Farm mortgage loans Short-term credit Loans to cooperatives End of year or month Total Total F b e l a a d n n e k d r s al s L B C i m o a a o i n n n s m - e d k - r Total1 m F b c i e e a n r d d n e te e i d k a r r i s - t t a 2 e l P a c s r t s r t o i i o e o d o d c n n u i i s a t c - - c d r E g r r l o o o e e m p a l n u i e a n e c g r f y s n h - t d Total3 c a B o t a f o i o n v p r e k e s r s - i A M r i n n e g t g g v a u r r o r i f A k c a u lv e u l n c t - l d t - - 1934 2,964 2,533 1,916 617 315 56 61 111 117 28 55 1935 -.. 3,321 2,867 2,072 795 358 47 94 173 97 50 44 1936 3,363 2,901 2,064 837 337 41 105 165 125 70 54 1937 3,335 2,848 2,035 813 367 40 138 173 120 88 31 1938 3,211 2,735 1,982 753 364 34 148 171 112 87 24 1939 3,058 2,596 1,905 691 364 33 154 168 99 76 21 1940. „.., 2,973 2,500 1,851 648 381 34 172 168 93 75 16 1941—May 2,988 2,458 1,824 634 440 40 215 179 90 74 16 June 2,988 2,448 1,818 630 450 42 221 179 90 74 16 July 2,986 2,437 1,811 626 453 44 224 179 96 80 16 August 2,975 2,426 1,804 622 450 45 221 177 99 83 16 September 2,954 2,411 1,795 616 431 43 208 174 111 94 16 October 2,924 2,395 1,786 610 410 39 194 170 119 101 16 November 2,906 2,380 1,776 604 398 38 187 167 128 109 17 December 2,891 2,361 1,764 597 397 39 188 165 133 113 17 1942—January 2,873 2,343 1,753 590 400 40 191 165 130 111 16 February 2,878 2,332 1,746 586 417 41 203 169 129 110 17 March 2,876 2,311 1,731 580 440 43 219 174 125 106 16 April 2,887 2,296 1,721 575 470 44 245 177 121 102 16 May 2,869 2,288 1,715 572 468 45 241 177 114 99 13 June 2,864 2,274 1,706 568 475 I 47 248 176 115 101 13 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 $4,000,000-$8,000,000 since 1939. 2 Exclusive of loans to and discounts for other Farm Credit Administration agencies amounting to a total of $260,000,000 in June 1942. 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. AUGUST 1941 833 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 Fed- Fed- Home Fed- eral RFC eral United Depos- U. S. Government End of month O L w o n a e n rs' H e o r m al e sa a v n in d gs M ga o g r e t- t N io a n - al S H t o a u t s e - s End of month i b to al r - s i C n a d s e h - securities C r a e s - h C ra o t r i p o o n - B L a o n a k n s1 a a s l t o s io o a n c n i s - 1 C pa o n m y - A M a s g o t s a r i o g t o c e i - n . - th A i o n u r g i - ty Total b p t a o o n r s y k i- s Total r D e i c - t G t a e u n e a - d r- fh s e ii e t n r c d v 2 s e 1933—June........... 47 1934—June ,.. 1,198 1,225 695 453 418 35 76 Dec „ 132 85 Dec ,. 1,207 1,237 540 597 467 130 100 1934—June 1,217 85 1935—June 1,205 1,236 385 777 630 147 74 Dec 2,379 87 81 Dec 1,201 1,237 287 853 706 147 98 1935—June 2,658 79 186 1936—June 1,232 1,265 203 967 800 167 95 2,897 103 348 6 Dec 1,260 1,296 145 1,058 891 167 93 1936—June'..'.'.'.'.'.'.' 2,945 119 475 18 1937—'June 1,268 1,307 136 1,100 933 167 71 Dec 2,765 145 587 36 Dec 1,270 1,308 130 ,097 930 167 80 1937—June 2,556 167 742 49 1938—June. ...,..„„ 1,252 1,290 115 ,103 936 167 73 1 1 9 9 3 3 8 9 — — D D D J J u u e e e n n c c c e e 2 2 2 2 2 , , , , , 0 1 2 3 0 3 6 6 9 8 8 9 5 8 1 2 1 1 1 1 8 9 6 0 9 1 9 9 0 6 1 1 1 , , , 2 0 1 8 9 7 3 3 5 4 1 4 6 4 8 5 5 5 6 4 7 4 7 8 1 1 1 4 3 8 2 7 8 0 5 12 3 6 1 1 3 2 8 0 3 1 1 9 9 4 3 0 9 — — D D D J J u u e e e n n c c c e e „.„ „ . 1 1 1 1 1 , , , , , 2 2 3 2 2 6 7 9 0 5 2 9 3 4 2 1 1 1 1 1 , , , , , 3 3 3 3 2 3 1 4 0 9 7 9 8 4 1 4 3 8 5 6 3 6 6 3 8 , , , , , 1 2 2 1 1 3 5 9 2 2 2 7 2 4 4 1 1 1 1 , , , , 0 0 0 0 9 1 4 7 7 6 1 6 8 8 5 1 1 1 1 1 4 4 4 4 6 6 6 6 6 7 6 8 7 7 7 9 8 8 4 3 1940—June 2,013 157 1,405 60 163 87 Dec............ 1,956 201 1,546 67 181 186 1941—June...... 1,304 1,356 30 ,251 1,104 146 75 July 1,307 1,359 29 ,251 1,104 146 80 1941—June.. „....„. 1,870 170 1,688 65 194 316 Aug 1,309 1,365 28 ,250 ,104 146 86 July 1,855 168 1,718 67 196 296 Sept 1,311 1,366 28 ,250 ,104 146 89 Aug 1,841 173 1,751 69 198 306 Oct 1,317 1,377 27 ,250 ,104 146 100 N O Se o c p t v t 1 1 1 , , , 7 8 8 9 2 0 4 5 9 1 1 1 8 8 7 7 4 8 1 1 1 , , , 8 7 8 7 1 0 6 5 3 , 7 7 7 0 2 3 2 2 2 0 0 0 5 3 0 3 3 3 2 2 3 9 8 2 D N e o c v . „ 1 1 , , 3 3 2 1 3 4 1 1 , ,3 3 8 9 8 6 2 2 6 7 i , , 2 2 5 7 0 4 , , 1 1 0 2 4 8 1 1 4 4 6 6 1 9 1 5 1 Dec 1,777 219 1,825 72 207 367 1942—Jan.; j 1,310 1,421 25 1,274 ,128 146 122 Feb 1,307 1,444 25 1,274 ,128 146 145 • 1942—-;Jan.... 1,758 206 1,825 74 210 388 Mar 1,305 1,463 25 1,272 ,126 146 166 Feb.... 1,742 197 1,830 75 211 352 Apr 1,306 1,483 25 1,272 ,126 146 186 Mar... 1,724 192 1,837 75 214 379 May 1,307 1,504 24 1,272 ,126 146 208 Apr.... 1,709 185 1,846 77 215 371 June May... 1,692 181 1,850 79 216 365 June.. 1,676 193 1,849 82 216 384 p Preliminary. 1 Outstanding principal, represented by certificates of deposit. Does not 1 Loans and discounts to member institutions of the Federal Home Loan include accrued interest nor outstanding savings stamps. Bank System. 2 Includes working cash with postmasters, 5-per cent reserve fund and 2 Federal Home Loan Bank Board estimates for all Federal savings and miscellaneous working funds with the Treasurer of the United States, loan associations which are private institutions chartered and supervised accrued interest on bond investments, and accounts due from late by the Federal Home Loan Bank Board. postmasters. Back figures.—See BULLETIN for August 1935, pp. 501-502. LOANS INSURED BY FEDERAL HOUSING ADMINISTRATION! INSURED FHA HOME MORTGAGES (TITLE II) HELD IN [In millions of dollars] PORTFOLIO BY CLASSES OF INSTITUTIONS1 [In millions of dollars] New Mort- Year or month Total p ( P m e T r i r o I r m e o i ) t v t n y p l - e e t - - s s h ( c t t T m o i I o r o ) i m u n a t n c l - l e e l - m H ( g T a I o o i D g m r t e l t e - s e g h a o r g ( e g T u a r I n e I o s n i ) s i t t u d n a l o p e l g n ( h f T V D e i o n n i u I e g t s ) - s l e - e End of month Total b C m c a o i n e a m k r l - s - b M s i t a n u a n g v u a k s - l - s a a s S l t i a s o i n a n o o a g v d c n n s - i s - p I a c n a o n s n m c u i e e r - - s a F c e g i e r e e a d n s l - 2 - Other3 1936—Dec ,. 365 228 8 56 41 5 27 1 1 9 9 3 3 4 5 . 3 3 2 0 0 2 3 2 0 4 ""•94" "Y" 1 1 9 9 3 3 7 8 — — D M e a c r 7 85 7 6 1 4 4 3 7 0 2 2 2 7 6 1 1 1 1 0 9 1 1 1 4 8 6 3 4 2 2 5 5 3 1 1936 557 246 309 2 June 933 509 28 127 165 44 60 1937 495 60 424 11 Sept 1,049 565 32 137 187 56 72 1938 694 160 13 473 48 Dec 1,199 634 38 149 212 77 90 1939 954 208 25 669 51 1939—Mar 1,349 699 44 159 241 114 92 1940 1,026 251 26 736 13 June 1,478 759 50 167 271 137 94 1941 1,186 262 21 877 13 13 Sept 1,622 824 57 178 302 148 113 Dec 1,793 902 71 192 342 153 133 1941—June 105 26 3 75 1940—Mar 1,949 971 90 201 392 171 124 July 105 20 3 82 June 2,075 1,026 100 208 432 182 127 Aug 91 18 1 70 1 Sept 2,232 1,093 111 216 480 190 141 Sept 107 31 2 73 1 Dec 2,409 1,162 130 224 542 201 150 Oct 125 34 2 85 2 2 1941—Mar 2,598 1,246 146 230 606 210 160 Nov 107 24 1 77 2 4 June 2,755 1,318 157 237 668 220 154 Dec 112 18 2 «8 5 Sept 2,942 1,400 171 246 722 225 178 Dec 3,107 1,465 186 254 789 234 179 1942—Jan 111 16 2 87 7 1942—Mar 3,307 1,549 201 264 856 237 200 Feb 93 12 1 71 ......... 8 Mar 93 10 2 68 12 Apr 83 13 2 55 1 11 1 Gross amount of mortgages held, excluding terminated mortgages and May 92 15 2 60 1 14 cases in transit to or being audited at the Federal Housing Administration. June 96 13 2 66 • 16 2 The RFC Mortgage Company, the Federal National Mortgage Association, the Federal Deposit Insurance Corporation, and the United States l Figures represent gross insurance written during the period and do not Housing Corporation. take account of principal repayments on previously insured loans. 8 Including mortgage companies, finance companies, industrial banks, endowed institutions, private and State benefit funds, etc. 834 FEDERAL RESERVE BULLETIN 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 seasonal variation! Industrial production Construction Y m ea o r nt a h nd ( I 1 m v n = p 9 a c 3 a e l o 5 y 1 n u m - 0 - t e 3 s 0 ) 9 e x Total (ph 1 y 9 s 3 ic 5 a -3 l 9 v f a M o = c l a u t 1 u n m 0 r u N e e 0 - s o )2 n * - M era in ls - To a t w a 19 a l 2 r c d 3 o e - R d n 2 d t e e 5 t i r a n s ( a l i = - v - c a ts 1 lu 0 o e 0 A t ) h 3 l e l r t N a u c g r o u r a l n i - l - E - 5 mp 1 l 9 o 2 y F 3 m a -2 c e 5 t n o = t r 4 y 100 1 = r 9 P F t o 2 o a a l 3 1 r y l c - y s 0 - - 2 4 0 5 F 1 = i r l 9 n o e c 3 g i a a 5 1 g s r d - 0 * h 3 - 0 t 9 D 19 m u = e s s ( 2 a v t p e e 3 o l a ) a 1 e - n ^ r l 0 2 r s e t - t 0 5 - m W p = c r 1 o s h i o 9 a c d o m 2 1 l e i e l 6 0 - t s e y 0 4 - C 1 l = i 9 o v 3 s i 5 t 1 n - 0 g 3 o 0 4 9 f Dur- dur- 1935-39 able able = 100 Ad- Ad- Unad- Ad- Ad- Ad- Ad- Ad- Ad- Ad- Ad- Unad- Unad- Ad- Ad- Unad- Unadjusted justed justed justed justed justed justed justed justed justed justed justed justed justed justed justed justed 1919 72 84 62 71 63 44 79 106.7 98.0 120 78 138.6 124.5 1920 75 93 60 83 63 30 90 107.1 117.2 129 94 154.4 143.2 1921 58 53 57 66 56 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 96.7 119.7 1923 88 103 72 98 84 81 86 103 8 102.9 142 98 100.6 121.9 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 99.8 101.1 146 103 103.5 125.4 1926 96 114 79 100 129 121 135 101.7 104.2 152 106 100.0 126.4 1927 95 107 83 100 129 117 139 99.5 102.4 147 107 95.4 124.0 1928 99 117 85 99 135 126 142 99.7 103.5 148 108 96.7 122.6 1929. 122.9 110 132 93 107 117 87 142 107.1 106.0 110.4 152 111 95.3 122.5 1930 109.1 91 98 84 93 92 50 125 100.3 92 A 89.4 131 102 86.4 119.4 1931 92.3 75 67 79 80 63 37 84 91.6 78.1 67.8 105 92 73.0 108.7 1932 70.6 58 41 70 67 28 13 40 82.2 66.3 46.7 78 69 64.8 97.6 1933 68.9 69 54 79 76 25 11 37 82.9 73.4 50.1 82 67 65.9 92.4 1934 78.7 75 65 81 80 32 12 48 90.1 85.7 64.5 89 75 74.9 95.7 1935 87.1 87 83 90 86 37 21 50 93 8 91 3 74.1 92 79 80.0 98.1 1936 101.3 103 108 100 99 55 37 70 99.8 99.0 85.8 107 88 80.8 99.1 1937 107.7 113 122 106 112 59 41 74 105.0 108.6 102.5 111 92 86.3 102.7 1938 98.5 89 78 95 97 64 45 80 98.6 90.9 78.5 89 85 78.6 100.8 1939 105.5 108 109 108 106 72 60 81 102.8 99.9 92.2 101 90 77.1 99.4 1940 113.8 123 138 113 117 81 72 89 106.4 107.5 105.4 109 94 78.6 100.2 1941 137.0 156 193 135 125 122 89 149 115.6 127.7 148.8 130 110 87.3 105.2 1939 June 105.1 103 102 99 106 104 63 58 67 102.2 97.3 96.4 87.9 97 86 75.6 98.6 July 104.8 105 102 102 106 107 67 62 71 102.6 98.4 96.6 85.8 99 87 75.4 August 106.1 106 106 108 108 92 73 67 78 103.0 99.0 99.5 91.2 101 88 75.0 September... 107.3 114 119 118 111 114 73 68 76 103.7 100.8 103.7 95.4 111 90 79.1 400.6 October 109.3 121 126 130 115 119 76 68 82 105.0 104.8 107.3 103.2 114 92 79.4 November 109.9 124 126 134 117 120 83 61 101 105.7 107.0 107.5 103.2 114 93 79.2 December.... 111.3 125 122 138 117 114 86 60 107 106.3 108.2 107.8 105.4 110 95 79.2 99.6 1940 t January 110.7 122 117 134 113 118 75 53 93 105.6 107.6 105.0 99.8 111 92 79.4 February . . 110.7 116 113 123 110 114 63 56 68 104.9 105.8 105.0 99.3 105 90 78.7 March 110.3 113 112 118 107 117 62 57 66 104.7 104.0 104.4 99.8 100 89 78.4 99.8 April .., 110.6 112 112 116 107 119 64 62 66 104.0 102.8 103.2 97.9 103 89 78.6 May 112.0 116 117 124 110 117 64 64 65 104.5 102.8 102.5 97.8 106 89 78.4 June 112.1 122 121 133 114 119 74 69 77 105.0 103.9 103.1 99.5 111 91 77.5 100.5 July 112.8 122 120 136 113 119 85 77 91 105.4 105.1 103.2 98.2 110 92 77.7 August 113.9 124 124 143 112 114 90 82 98 106.3 107.4 107.4 105.5 112 98 77.4 September. .. 115.5 127 132 151 112 117 93 82 101 106.9 108.9 111.4 111.6 112 97 78.0 100.4 October 117.2 131 136 155 117 113 95 85 103 108.1 111.4 113.8 116.2 110 94 78.7 100.2 November 117.7 134 136 157 120 118 111 87 130 109.7 114.2 114.7 116.4 116 100 79.6 100.1 December 121.3 139 136 164 124 118 115 90 136 111.5 116.6 116.2 122.4 119 101 80.0 100.7 1941 January 123.4 140 135 171 123 119 103 84 117 111.8 118.3 115.5 120.7 122 101 80.8 100.8 February.... 125.4 144 140 176 126 118 99 76 118 112.5 118.6 117.8 126.8 124 103 80.6 100.8 March 127.2 147 144 180 128 125 94 74 109 112.3 119.4 119.9 131.2 126 103 81.5 101.2 April 129.4 144 144 180 131 95 103 80 121 112.5 122.0 122.6 134.7 112 104 83.2 102.2 May. 133.6 154 155 190 135 125 101 88 111 114.0 124.9 124.9 144.1 135 105 84.9 102.9 June 137.0 159 160 195 139 r133 117 101 129 115.4 128.7 127.9 152.2 139 104 87.1 104.6 July 138.9 160 159 199 138 131 139 115 158 117.1 133.3 130.6 152.7 138 115 88.8 105.3 August 141.1 161 162 199 139 132 152 112 184 117.7 133.3 133.1 158.1 139 134 90.3 106.2 September. .. 143.1 161 167 203 137 131 161 105 206 117.5 132.3 135.2 162.6 130 116 91.8 108.1 October 145.4 163 168 207 139 130 145 87 192 118.0 132.8 135.4 167.0 127 105 92.4 109.3 November.... 146.5 166 167 208 144 131 138 74 189 119.2 134.4 134.8 165.4 135 116 92.5 110.2 December.... 154.7 168 164 215 141 131 123 69 167 120.1 134.9 134.2 169.9 137 111 93.6 110.5 1942 January 155.7 171 165 222 143 131 118 82 147 120.1 135.7 132.5 173.5 140 138 96.0 112.0 February 156.9 172 167 226 142 129 128 100 151 120.1 135.1 133.8 178.3 139 126 96.7 112.9 March r158.4 171 168 229 139 127 125 95 149 120.2 134.7 r135.1 182.9 136 124 97.6 114.3 April 161.5 173 171 232 139 130 128 82 165 120.3 r135.5 136.1 186.7 143 117 115.1 May... 162.7 174 175 237 138 129 158 76 226 120.8 137.0 137.1 191.8 143 108 P98.8 116.0 June P165.4 PI 77 ^243 P132 P197 P88 P286 120.9 p139.1 PI38.4 194.5 141 104 P98.6 116.4 July e98.6 p Preliminary. * Average per working day. r Revised. e Estimated. * Department of Commerce series on value of payments to individuals. 2 For indexes by groups or industries, see pp. 836-839, for description, see BULLETIN for September 1941, pp. 878-881, and for August 1940, pp. 753-771. J Based on F. W. Dodge Corporation data; for description, see p. 358 of BULLETIN for July 1931; by groups, see p. 844. 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 description1 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. 840-843 for employment and payrolls and p. 847 for prices. 5 Excludes military and naval forces. 6 For sales comparisons by cities and by departments see p. 846 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; or freight-car loadings, June 1941, pp. 529-533. AUGUST 1941 835 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDUSTRIAL PRODUCTION, BY INDUSTRIES {Adjusted for Seasonal Variation) [Index numbers of the Board of Governors. 1935-39 average = 100] 1941 1942 Industry May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June Industrial Production—Total... 154 159 160 161 161 163 166 168 171 172 171 173 174 P177 Manufactures—Total 160 164 165 166 167 169 173 174 179 180 179 181 182 Durable 190 195 199 199 203 207 208 215 222 226 229 232 237 ^243 Nondurable1. 135 139 138 139 137 139 144 141 143 142 139 139 138 Iron and Steel. 183 184 185 185 192 191 191 196 191 193 Pig iron 175 179 181 182 185 184 184 190 189 189 Steel 195 195 196 197 206 206 206 211 208 210 216 217 218 215 Open hearth and Bessemer.. 174 173 173 172 179 178 176 181 174 176 180 179 180 177 Electric 347 355 358 375 399 407 417 422 445 444 473 483 484 485 Machinery 206 214 216 224 227 231 229 241 248 255 r264 268 274 P280 Government Arsenals and Quartermaster Depots Transportation Equipment 228 243 255 241 245 269 275 278 304 312 327 346 371 P399 Aircraft 876 930 997 1,113 1,204 1,290 1,340 Automobile bodies, parts, and assembly... 152 161 168 141 134 146 142 120 118 105 105 104 107 P118 Automobile factory sales 151 148 154 93 74 110 123 2 Railroad cars 218 233 233 236 249 278 264 Locomotives 256 280 307 306 319 335 338 Shipbuilding Private yards 381 428 467 485 560 634 645 Government yards Nonferrous Metals and Products.. 189 186 192 189 192 185 190 193 194 190 184 182 187 Nonferrous metal smelting. 148 144 142 145 145 147 150 151 153 157 157 161 163 Copper smelting 144 136 131 135 135 137 139 141 140 141 147 155 r16l Zinc smelting 170 170 173 175 175 177 179 182 184 189 184 185 184 180 Lead production 115 117 114 116 120 119 127 122 131 140 134 132 126 Copper deliveries 233 229 244 231 233 217 226 230 235 224 208 195 205 •Lead shipments 205 210 200 199 209 T Zi i n n c c s o h n i s p u m m e p n t t i s on 1 14 4 7 4 1 14 4 1 4 1 15 4 5 2 1 16 4 1 3 1 14 6 5 6 1 1 4 5 3 3 1 15 4 5 7 1 17 4 1 5 152 1 I 5 * 1 148 145 146 143 Lumber and Products. 132 135 141 140 136 135 135 138 143 144 134 133 P134 P130 Lumber... 122 125 131 134 129 129 128 132 138 143 128 127 124 Furniture. 152 155 161 152 149 146 148 149 153 147 145 146 152 PU3 Stone, Clay, and Glass Products.. 143 149 151 154 157 158 162 167 199 189 169 r152 145 P140 Cement 134 138 143 148 154 159 164 191 249 236 188 161 146 145 Unglazed brick 128 133 136 146 144 145 153 152 160 152 133 119 Glass containers 148 155 154 159 165 167 169 165 184 178 187 176 178 163 Polished plate glass.. 142 152 146 133 120 102 105 67 65 49 41 43 35 37 Textiles and Products. 157 156 155 154 151 150 156 154 158 156 153 157 156 153 Textile fabrics 153 151 151 149 145 143 148 146 148 147 143 148 146 Cotton consumption 165 160 162 160 156 161 167 155 169 174 169 177 175 169 Rayon deliveries 169 173 173 170 168 172 179 179 180 174 175 170 169 169 Silk deliveries 71 73 77 56 34 10 15 Wool textiles 165 163 157 166 169 164 166 178 161 153 148 153 149 Carpet wool consumption... 148 149 126 148 142 133 133 164 78 79 70 34 5 Apparel wool consumption.. 196 190 177 181 205 199 200 209 202 191 196 r203 201 Woolen yarn 153 151 153 162 163 157 156 159 163 165 161 r173 171 Worsted yarn 178 178 174 179 185 185 184 195 173 148 143 164 168 Woolen and worsted cloth... 167 165 160 166 169 164 170 182 183 172 167 177 180 Leather and Products.. 124 132 130 122 120 125 134 128 127 121 121 127 P126 *128 Leather tanning 119 122 125 124 125 129 134 123 130 127 127 130 128 Cattle hide leathers.... 130 133 137 141 136 138 145 135 148 139 139 147 147 Calf and kip leathers.. 99 98 93 103 101 107 108 89 86 93 96 91 94 Goat and kid leathers. 105 112 116 97 115 121 123 117 119 120 120 115 104 Shoes 128 138 134 121 118 123 134 131 125 117 116 124 124 Manufactured Food Products. 123 127 126 132 130 134 141 137 *>140 *>140 *137 *136 134 »136 Wheat flour , 110 107 103 98 99 101 103 109 108 110 101 98 105 102 Cane sugar meltings 119 129 102 129 111 112 139 Manufactured dairy products. 129 124 126 127 139 146 146 155 P155 P153 P150 P149 Ice cream 134 130 129 124 142 153 143 156 Butter 117 111 113 109 109 108 105 104 106 107 108 110 111 105 Cheese 134 121 128 134 145 148 163 176 172 182 192 195 183 156 Canned and dried milk 139 132 141 165 183 197 224 240 234 220 198 187 178 168 r Revised. » Preliminary. * Included in total and group indexes but not available for publication separately. * Beginning in January 1942 includes industrial alcohol produced in the alcoholic beverage industry. Figures not available for publication separately. z Beginning in December 1941 this series dropped from the index of industrial production and its weight transferred to the automobile bodies, parts, and assembly series, which is more representative of production by the automobile industry. 836 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Industrial Production, by Industries {Adjusted for Seasonal Variation)—Continued [Index numbers of the Board of Governors. 1935-39 average = 100] 1941 1942 i Industry May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June Manufactured Food Products—Continued Meat packing . . ... 132 124 125 134 126 133 135 142 148 141 144 142 140 153 Pork and lard 147 134 132 149 139 148 148 161 165 151 161 156 163 177 Beef. 120 120 123 124 118 123 124 127 138 139 132 134 121 137 Veal 97 91 96 94 101 108 114 98 96 96 98 96 94 103 Lamb and mutton 109 101 110 105 99 103 111 117 113 113 128 119 105 104 Other manufactured foods ............... .. 122 129 128 135 132 135 144 137 140 142 138 137 135 P138 Alcoholic Beverages r 114 r123 130 128 131 129 109 116 139 133 116 109 111 104 Malt liquor ... 106 108 115 110 118 127 110 123 120 128 117 114 115 104 Whiskey 90 95 108 93 94 107 81 91 77 74 62 63 55 63 Other distilled spirits 129 153 206 206 262 178 139 121 250 75 44 53 80 61- Rectified spirits , 171 207 190 219 170 138 120 102 243 241 201 153 158 163 Tobacco Products „..,. „ „ - 119 118 114 118 121 128 132 129 132 130 125 127 122 122 Cigars 109 106 106 109 104 112 115 139 129 126 121 120 108 112 Cigarettes 131 131 123 129 137 144 149 136 144 144 137 140 140 136 Manufactured tobacco and snuff 100 97 97 96 99 104 106 95 99 93 94 97 89 94 Paper and Paper Products1 142 145 146 147 144 146 153 155 154 149 150 148 14? Paper and pulp ,. ... 146 149 150 152 149 150 160 162 161 155 156 153 149 Pulp 164 175 167 172 170 172 185 179 181 180 189 183 184 Groundwood pulp 120 121 122 128 129 130 141 129 135 131 138 129 120 Soda pulp.... . ........ 141 151 149 151 140 145 167 153 153 154 155 148 147 Sulphate pulp r209 216 203 215 210 210 225 225 221 224 239 236 245 Sulphite pulp 155 170 163 164 163 166 178 171 177 173 181 174 173 Paper 143 145 148 149 145 147 156 160 158 151 151 148 143 Paperboard 158 154 162 161 158 158 167 186 175 163 162 154 144 120 Fine paper 127 134 140 147 152 147 160 157 151 144 150 146 147 Newsprint production 114 114 112 113 107 110 110 106 107 110 106 109 104 103 Printing paper 138 149 149 150 146 149 161 145 151 146 140 135 124 Tissue and absorbent paper.. . . 137 144 142 143 130 140 153 152 166 168 164 169 175 Wrapping paper 139 140 138 139 136 138 140 147 147 142 148 151 153 Printing and Publishing^ T.r123 128 127 129 125 127 136 130 128 125 121 rll7 112 P\U Newsprint consumption 107 106 106 109 105 105 111 115 104 103 103 98 100 97 Petroleum and Coal Products 125 127 128 130 132 133 135 139 135 131 126 119 117 Petroleum refining ,. . , 122 123 124 126 128 129 133 135 131 126 120 112 109 Gasoline 124 123 123 126 130 131 134 139 134 125 117 106 103 Poo Fuel oil 119 122 124 127 124 129 129 130 123 128 124 126 122 Lubricating oil 118 134 133 132 130 129 137 132 133 131 131 126 122 Kerosene , 115 104 108 116 119 121 123 126 120 128 113 106 101 Coke ... 149 155 154 154 152 153 153 160 161 161 160 162 164 163 Byproduct coke 141 146 146 146 144 145 145 151 152 152 151 152 154 153 Beehive coke 408 r459 429 453 425 437 410 474 472 493 476 494 511 523 Chemicals ,...„......,..„ 136 144 146 145 146 148 149 152 156 161 161 164 167 p171 162 192 153 130 131 134 1 CA 1 IT Tires and tubes 144 152 126 117 108 103 103 67 33 28 26 .. 25 Pneumatic tires 144 151 126 118 108 104 104 67 32 28 26 25 Inner tubes 145 155 125 110 103 94 102 64 33 27 27 27 Minerals—Total .„ 125 r133 131 132 131 130 131 131 131 129 127 130 129 *132 Fuels ,. „.,. .1.2.1.r.130 127 129 128 127 128 127 128 125 122 126 125 P127 Bituminous coal ,...,..., 147 155 146 147 139 127 125 124 129 120 146 178 173 Anthracite.. . . ...... 80 131 137 162 127 116 97 89 89 110 113 114 105 P127 Crude petroleum ,.114 120 119 119 124 128 132 132 132 128 114 107 108 Metals ,.. 152 151 151 148 145 146 147 153 151 152 151 r151 155 P159 Iron ore shipments. 195 198 205 202 192 182 204 209 211 212 215 217 225 235 L C e o a p d p er r... . . « . . . « » . « .. 1 11 5 5 9 1 1 1 5 7 5 1 11 5 4 6 1 1 1 5 6 5 1 12 5 0 4 1 1 5 19 1 1 1 2 5 7 2 1 1 5 22 7 1 13 6 1 1 1 1 5 40 8 1 1 6 34 2 1 1 3 6 2 4 1 1 2 7 6 4 * Zinc 127 136 125 131 135 134 131 138 138 146 * * * * Gold 132 126 121 114 114 130 116 125 113 118 * * * Silver .. . 122 128 124 129 116 108 106 105 105 101 106 109 r Revised p Preliminary. * Included in total and group indexes but not available for publication separately. 1 Includes also paperboard container production held constant, on a seasonally adjusted basis, at 128 since July 1940 when figures were last reported. 22 ITnr»cr*l1undr1eosc aallsono TpvrriiTn*t +in iigio - pTakOpTekr^v rp rnorAd/ulncrt»ifoinrt n sholoi/wvriTn- nu nnnd/eiori * "*P*PaOpTe\OrT.« " NOTE.—For description and back figur<:e s see~ BULLETIN for September 1941, pages 878-881 and 933-937, and August 1940, pages 753-771 and 825-882. AUGUST 837 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDUSTRIAL PRODUCTION, BY INDUSTRIES {Without Seasonal Adjustment) [Index numbers of the Board of Governors. 1935-39 average = 100] 1941 1942 Industry May June July Aug. Sept. Oct. Nov. Dec Jan. Feb. Mar. Apr. May June Industrial Production—Total 160 159 162 167 168 167 164 165 167 168 171 175 *>177 Manufactures—Total 165 164 167 172 173 173 171 172 174 177 180 183 Durable 198 196 199 206 210 209 212 215 219 226 232 239 ^245 138 138 142 145 143 144 138 137 138 137 138 138 Nondurable1 184 185 185 192 191 191 196 191 193 Iron and Steel „..,,., 179 181 182 185 184 184 190 189 189 Pig iron 195 196 197 206 206 206 211 208 210 216 217 218 215 Steel 173 173 172 179 178 176 181 174 176 180 179 180 177 Open hearth and Bessemer 355 358 375 399 407 417 422 445 444 473 483 484 485 Electric 214 216 224 227 231 229 241 248 255 264 268 274 P280 Machinery Government Arsenals and Quartermaster Depots 229 244 229 221 245 269 275 278 304 312 327 346 371 P3QQ Transportation Equipment 876 930 997 1,113 1,204 1,290 1,340 Aircraft 152 161 135 120 134 146 142 120 118 105 105 104 107 Automobile bodies, parts, and assembly 164 164 134 47 74 110 123 2 2 2 2 Automobile factory sales 218 233 233 236 249 278 264 Railroad cars 256 280 307 306 319 335 338 Locomotives Shipbuilding 381 428 467 485 560 634 645 Private yards Government yards Nonferrous Metals and Products 191 187 191 189 191 185 190 192 193 190 185 183 188 P293 Nonferrous metal smelting 148 144 141 145 145 147 151 152 153 157 156 162 164 Copper smelting 144 136 131 135 135 137 139 141 140 141 147 155 r161 Zinc smelting 170 170 173 175 175 177 179 182 184 189 184 185 184 180 Lead production 117 116 110 116 120 119 128 124 131 140 131 135 128 Copper deliveries 233 229 244 231 233 217 226 230 235 224 208 195 205 Lead shipments 205 210 200 199 209 Zinc shipments 144 144 142 143 145 143 147 145 152 151 148 145 146 143 Tin consumption ,. 153 148 154 159 159 151 155 165 Lumber and Products 134 140 144 151 148 145 134 128 122 128 129 132 135 *>136 Lumber 130 135 142 148 144 138 124 113 112 118 120 127 131 Furniture..., 143 150 149 157 156 159 154 155 142 147 147 142 143 ^139 161 171 165 174 175 175 169 147 138 132 140 r151 P162 Stone, Clay, and Glass Products. ... .. 166 163 174 177 181 184 185 171 153 137 132 141 161 183 U Ce n m gl e a n z t ed brick 1 1 4 5 5 8 1 1 6 6 5 3 1 16 6 1 8 1 1 7 7 5 4 1 1 7 6 7 8 1 1 7 7 0 2 1 1 6 7 6 0 1 15 3 3 7 1 9 6 7 5 1 8 6 3 4 1 9 7 0 6 1 17 1 6 6 . . 1 1 7 9 8 0 in* Glass containers 142 149 96 109 120 117 120 80 68 47 43 43 35 Polished plate glass 37 Textiles and Products.. „ 157 155 155 154 151 150 156 154 158 156 153 157 156 ?153 Textile fabrics 152 150 150 148 145 143 148 146 148 147 143 148 146 Cotton consumption 165 160 162 160 156 161 167 155 169 174 169 177 175 169 Rayon deliveries 169 173 173 170 168 172 179 179 180 174 175 170 169 169 Silk deliveries 66 66 69 50 32 10 15 * * * * * * Wool textiles 165 163 157 166 169 164 166 178 161 153 148 153 149 Carpet wool consumption 148 149 126 148 142 133 133 164 78 79 70 34 5 Apparel wool consumption 196 190 177 181 205 199 200 209 202 191 196 r203 201 Woolen yarn 153 151 153 162 163 157 156 159 163 165 161 r173 171 Worsted yarn 178 178 174 179 185 185 184 195 173 148 143 164 168 Woolen and worsted cloth 167 165 160 166 169 164 170 182 183 172 167 177 180 Leather and Products 122 120 126 130 129 127 123 116 124 131 128 r131 123 Leather tanning 116 118 120 120 124 129 135 125 131 138 127 130 125 Cattle hide leathers 127 126 128 134 135 140 151 137 149 155 140 r147 144 Calf and kip leathers „.r 94 100 102 108 99 103 102 91 84 98 91 90 89 Goat and kid leathers «....., 103 112 115 95 116 120 119 119 119 125 119 119 102 Shoes „ ., ,. 126 122 130 137 132 125 116 110 120 126 129 r131 121 Manufactured Food Products ««..«...,... 119 128 137 152 159 143 139 130 P124 P122 P123 *130 P138 Wheat flour 100 101 102 99 114 110 107 104 109 109. 98 92 96 95 Cane sugar meltings 117 132 117 136 132 109 114 Manufactured dairy products 175 188 181 167 142 115 99 98 2400 P218 Ice cream 182 208 216 200 153 110 86 81 Butter 151 155 137 120 108 95 83 82 85 92 96 109 143 147 Cheese 177 186 165 151 150 139 124 123 124 142 157 189 242 240 Canned and dried milk 200 195 172 169 168 158 156 166 178 187 194 211 257 249 p Revised. p Preliminary. * Included in total and group indexes but not available for publication separately. J Beginning in January 1942 includes industrial alcohol produced in the alcoholic beverage industry. Figures not available for publication separately. * Beginning in December 1941 this series dropped from the index of industrial production and its weight transferred to the automobile bodies, parts, and assembly series, which is more representative of production by the automobile industry. 8 8, 3 FEDERAL RESERVE BULLETIN 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 1941 \942 Industry May June July Aug. Sept. Oct. *Nov. Dec. Jan. Feb. Mar. Apr. May June Manufactured Food Products—Continued Meat packing 132 121 119 116 119 134 152 165 173 135 131 134 140 149 Pork and lard . . 147 130 119 112 111 139 178 208 214 151 145 148 163 172 Beef 120 118 125 126 132 134 130 127 138 125 120 125 121 134 Veal 101 92 95 95 111 119 116 93 93 84 93 95 98 104 Lamb and mutton . .. 111 96 104 104 111 109 108 111 118 113 124 115 108 99 Other manufactured foods 111 123 137 159 170 151 146 131 123 124 121 121 123 P131 A Icoholic Beverages 120 130 131 122 137 137 118 106 112 117 113 113 120 116 Malt liquor. . . 125 r138 142 128 120 104 90 96 96 109 112 124 136 134 Whiskey 90 76 59 51 75 102 101 104 102 96 77 69 54 50 Other distilled spirits 77 90 97 99 359 472 292 150 163 45 29 32 48 36 Rectified spirits 150 165 160 171 180 180 190 135 177 207 191 136 139 130 Tobacco Products 121 128 123 122 132 133 134 no 126 121 117 119 123 132 Cigars 108 113 111 113 120 135 137 107 104 109 111 114 107 120 Cigarettes 133 144 138 136 146 141 143 121 146 136 127 130 142 150 Manufactured tobacco and snuff . ..100 99 99 96 107 106 105 83 96 92 96 96 89 96 Paper and Paper Products^- 141 143 139 146 149 151 152 146 151 153 155 151 144 Paper and pulp 145 147 143 150 151 155 159 154 159 160 161 157 149 Pulp r166 173 159 170 168 173 186 174 183 186 194 187 186 Groundwood pulp . ..133 124 109 109 112 121 144 134 140 137 148 144 133 Soda pulp 141 150 141 151 142 145 167 148 153 158 160 152 147 Sulphate pulp r209 214 199 215 210 214 225 214 223 230 r243 236 245 Sulphate pulp ...... 155 167 155 164 163 169 179 166 177 179 185 178 173 Paper 142 143 140 147 148 152 155 151 155 156 156 152 143 Paperboard 155 154 154 163 167 167 167 166 168 167 168 157 141 120 Fine paper 130 131 128 139 144 147 155 154 152 155 160 159 151 Newsprint production 115 115 109 110 107 110 113 107 107 108 106 109 105 104 Printing paper r141 146 140 145 145 151 160 144 151 151 145 r140 127 Tissue and absorbent paper 136 143 135 143 136 145 151 146 161 175 166 »172 173 Wrapping paper 136 137 133 138 138 143 140 143 147 147 151 152 150 Printing and Publishing^ 126 127 116 121 125 131 138 131 125 126 126 r123 115 Newsprint consumption 111 107 92 96 106 112 111 117 99 102 107 105 104 98 Petroleum and Coal Products 126 128 129 131 134 135 136 138 132 129 122 118 117 Petroleum refining.... 122 124 125 128 131 132 134 134 128 124 116 111 110 Gasoline 124 126 127 130 134 134 135 136 129 121 112 104 103 P101 Fuel oil 119 121 122 124 125 130 130 132 127 129 122 123 122 Lubricating oil 122 134 131 131 130 129 137 131 129 129 130 131 127 Kerosene 115 102 103 111 117 121 126 127 126 129 115 108 101 Coke 149 r155 154 154 152 153 153 160 161 161 160 162 164 163 Byproduct coke 141 r146 146 146 144 145 145 151 152 152 151 152 154 153 Beehive coke - 408 r459 429 453 425 437 410 474 472 493 476 494 511 523 Chemicals 135 138 139 142 148 153 151 153 155 161 166 167 166 *165 Rubber Products 162 192 153 130 131 134 Rubber consumption 164 196 156 132 134 137 Tires and tubes 144 152 126 117 108 103 103 67 33 28 26 25 Pneumatic tires 144 151 126 118 108 104 104 67 32 28 26 25 Inner tubes 145 155 125 110 103 94 102 64 33 27 27 27 Minerals—Total 127 r132 130 134 137 138 135 125 125 125 118 r125 131 P131 Fuels ............... 118 123 121 125 129 131 130 129 131 130 122 121 121 PJ20 Bituminous coal 125 r133 128 135 144 142 143 138 144 141 140 150 147 *>144 Anthracite 88 r120 107 120 122 123 99 94 104 121 116 122 115 P117 Crude petroleum 118 120 119 122 124 127 128 129 129 127 115 109 111 Pill Metals 181 181 184 187 182 181 161 98 91 92 96 r153 189 P194 Iron ore shipments 323 326 344 335 311 281 231 23 236 371 381 CoDDer 159 152 147 152 152 156 157 159 158 160 165 169 174 * Lead . 117 116 110 116 120 119 128 124 131 140 131 135 128 Zinc 127 136 125 131 135 134 131 138 138 146 * * * * Gold 114 116 116 126 131 152 132 130 107 106 * * * Silver 121 123 122 126 117 107 106 105 106 103 110 110 r Revised. p Preliminary. * Included in total and group indexes but not available for publication separately. 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." 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. 839 AUGUST 1942 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] 1941 1942 Industry and group May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June Totali 124.9 128.7 133.3 133.3 132.3 132.8 134.4 134.9 135.7 135.1 134.7 135.5 137.0 139.1 Durable good si 129.5 134.0 140.7 141.5 141.3 142.3 143.7 144.3 146.7 146.8 146.9 148.2 150.3 154.5 Nondurable goodsl . 120.5 123.7 126.3 125.5 123.8 123.8 125.6 126.0 125.2 123.8 123.1 123.4 124.3 124.5 Iron and Steel and Products 132.0 136.0 139.1 140.2 139.7 138.2 138.3 138.9 139.0 136.5 134.7 134.1 133.9 135.1 Blast furnaces, steel works, etc 140 145 149 150 149 148 148 149 150 149 148 149 151 153 Boltsj nuts, washers, and rivets 160 166 169 173 172 170 169 170 r171 r169 r170 170 172 176 Cast-iron pipe 94 95 95 94 97 98 101 100 98 100 99 98 98 93 Cutlery and edge tools 117 122 130 130 128 129 130 134 136 133 134 129 127 128 Forgings 102 105 112 112 113 115 115 117 119 122 123 128 129 131 Hardware 116 118 105 116 117 115 113 106 99 94 94 91 89 92 Plumbers' supplies 102 102 102 103 100 98 98 98 96 92 88 81 78 74 Stamped and enameled ware 214 220 228 231 231 225 225 220 217 208 207 200 200 204 Steam and hot-water heating 111 114 123 126 125 125 123 125 127 124 123 122 119 120 Stoves 110 114 121 115 109 105 104 108 109 100 94 88 85 82 Structural and ornamental metal work 103 104 105 107 106 107 107 107 108 112 113 116 116 117 Tin cans and tinware 122 129 131 132 132 127 138 141 147 141 122 115 110 100 Tools 135 139 142 146 147 145 146 148 r152 153 153 154 154 155 Wirework 207 214 218 198 214 203 201 199 184 169 160 152 147 154 Machinery 161.6 167.3 173.0 177.7 177. 179.3 181.2 183.4 187.1 190.8 194.3 197.1 199.1 202.6 Agricultural implements 166 170 175 182 181 180 172 167 161 161 160 157 162 165 Cash registers, etc 150 163 168 170 173 175 177 178 176 178 177 174 177 184 Electrical machinery 153 159 164 168 168 168 168 Engines, turbines, etc 259 275 294 315 323 348 371 Foundry and machine-shop products.. 134 139 143 146 147 148 149 150 153 155 157 160 161 165 Machine tools 326 337 349 366 355 360 365 * * * * * T T R e y a x p d t e i i o w l s e r a i m t n e a d r c s h p i h n o e n r o y graphs 1 1 1 9 4 0 7 3 1 1 1 1 5 0 8 0 4 4 1 1 1 9 5 0 1 5 7 1 1 1 8 5 0 7 7 8 1 1 1 8 5 1 3 8 0 1 1 1 7 6 1 9 0 0 1 1 1 5 0 9 9 9 4 2 1 1 0 0 5 6 9 9 2 1 1 2 5 0 0 7 9 2 1 1 3 5 1 5 2 0 2 1 1 5 4 0 0 7 9 2 1 1 4 2 1 9 6 0 2 1 1 2 0 1 3 9 4 1 1 1 9 0 0 3 3 8 Transportation Equipment 164.6 174.2 196.1 193.1 195.2 204.5 208.9 205.4 210.1 r214.9 r218.7 r228.5 242^.8 264.5 Aircraft 6,121 6,522 7,160 7,897 8,779 9,453 9,794 * * * * * A Ca u r t s o , m e o le b c i t l r e i s c- and steam-railroad...... 12 7 8 4 1 8 3 1 2 1 8 4 9 9 1 8 3 7 9 1 9 2 8 8 1 1 2 0 9 0 1 1 2 0 7 0 111 96 84 81 79 83 90 Locomotives 58 61 67 70 73 74 77 Shipbuilding 301 341 387 398 440 490 533 NonferrOus Metals and Products 140.7 144.1 147.8 147.9 144.8 143.1 142.2 143.4 146.8 146.5 146.4 r144.3 145.2 145.7 Aluminuml 234 230 240 246 247 240 244 Brass, bronze, and copper 182 190 193 195 194 191 192 Clocks and watches 118 121 125 121 110 114 110 108 112 110 111 113 117 117 Jewelry 113 115 120 119 110 105 106 112 114 110 109 106 104 98 Lighting equipment 112 115 118 118 119 119 114 106 102 100 97 91 87 86 Silverware and plated ware 82 84 94 87 85 84 82 83 82 78 77 66 65 65 Smelting and refining 102 102 103 105 103 100 99 100 102 102 101 102 101 99 Lumber and Products ... 74.6 75.9 78.9 78.4 77.3 76.4 76.9 78.1 79.2 77.9 75.4 r73.8 73.2 72.5 Furniture •... 104 106 108 107 103 101 104 105 106 104 103 101 100 97 Lumber> millwork.. 69 71 75 76 75 76 75 75 75 73 72 r70 70 69 Lumber, sawmills.. 64 65 68 68 68 67 67 68 70 68 66 64 64 63 Stone, Clay, and Glass Products. 92.1 93.7 98.6 98.4 98.7 98.9 100.9 101.6 105.0 100.1 96.9 94.7 90.9 90.4 Brick, tile, and terra cotta.. 69 69 73 74 74 73 76 77 81 78 75 71 67 64 M P G C o e l a a t m r t s b e s e l r n e y t , granite, and slate... 1 1 4 7 2 0 5 3 2 9 1 1 4 7 1 2 4 4 6 4 1 1 4 3 7 2 3 1 7 6 1 1 4 2 7 3 2 3 8 0 1 1 4 7 2 3 3 9 2 0 1 1 4 7 3 2 5 9 1 1 1 1 4 2 8 3 5 1 2 3 1 1 4 8 2 3 5 5 1 2 1 1 8 2 4 3 8 5 8 5 1 1 2 8 4 2 1 7 3 6 1 1 4 8 1 2 1 3 6 4 1 1 2 3 1 8 4 9 5 0 1 1 3 1 2 7 3 4 2 7 1 11 3 2 7 8 5 0 8 Textiles and Products 112.9 116.1 120.0 117.1 114.7 112.9 113.3 113.2 112.0 110.0 109.4 110.9 112.3 112.4 Fabrics 105.9 109.0 111.1 109.6 107.2 105.4 105.1 104.4 104.1 102.2 102.6 104.8 105.5 107.4 Carpets and rugs 89 90 89 91 91 90 90 90 85 81 75 70 67 70 Cotton goods 106 111 113 115 112 112 111 110 110 110 110 112 114 117 Cotton small wares 103 107 110 110 110 108 109 109 106 106 106 108 111 114 Dyeing and finishing textiles . 141 144 149 143 140 135 130 133 131 131 132 134 135 136 Hats, fur-felt 83 86 86 79 77 78 78 76 73 71 70' 68 60 68 Hosiery 144 146 149 144 135 133 132 133 132 130 127 125 123 122 Knitted outerwear 76 81 85 83 78 77 78 81 78 79 79 82 81 81 Knitted underwear 81 79 90 88 88 87 87 86 90 86 86 85 87 88 Knitted cloth 155 163 162 161 158 147 147 147 149 r150 151 155 155 155 Silk and rayon goods 74 75 72 67 61 60 61 60 59 59 61 63 68 69 Woolen and worsted goods ... 109 110 112 108 112 109 110 107 106 99 102 109 108 108 Wearing apparel 124.0 127.0 135.0 128.8 126.6 124.7 126.9 128.2 125.1 122.8 120.0 119.7 122.6 118.5 Clothing, men's 122 124 124 120 119 120 125 128 123 118 118 119 126 121 Clothing, women's 161 170 193 176 171 165 167 169 161 162 156 154 156 150 Corsets and allied garments .. 116 119 119 122 123 112 122 115 112 116 113 112 111 110 Men's furnishings 121 124 137 137 134 127 121 113 115 113 111 111 111 113 Millinery 73 68 75 79 77 75 68 68 72 78 74 70 64 56 Shirts and collars 131 133 135 135 134 131 132 135 145 133 129 129 130 129 Leather and Manufactures .., 96 A 101.0 100.2 97.9 98.0 99.6 104.2 103.1 98.8 96.3 97.4 98.1 100.0 100.1 Boots and shoes 94 98 97 94 94 96 101 100 95 92 93 95 97 98 Leather 90 95 97 96 97 98 97 96 95 96 95 94 93 r Revised. * Included in total and group indexes but not available for publication separately. October 1939, 84O FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Factory Employment {Adjusted)—Continued [Index numbers of the Board of Governors; adjusted to Census of Manufactures through 1937. 1923-25 average=100] 1941 1942 Industry and group May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. 1 Mar. Apr. May June Food and Kindred Products ........ 135.0 137.3 138.4 140.9 138.8 140.7 147.0 147.5 148.4 147.6 r144.4 142.3 143.4 143.2 Baking 149 151 149 152 151 152 152 152 153 152 152 151 151 153 Beverages x 287 286 289 298 295 303 311 316 310 310 304 r304 310 288 Butter 107 105 102 104 102 102 106 106 105 105 109 115 116 119 Canning and preserving 147 156 161 169 157 164 201 188 183 189 r168 150 156 154 Confectionery 89 90 97 100 91 90 96 95 94 93 94 94 91 88 Flour 78 80 79 77 79 78 78 79 80 80 79 79 79 81 Ice cream 79 78 78 79 78 83 83 83 82 82 81 82 79 79 Slaughtering and meat packing 119 121 123 124 125 126 127 133 139 138 137 138 140 144 Sugar, beet 99 93 89 76 98 91 98 141 168 115 107 102 104 102 Sugar refining, cane 102 101 94 93 103 103 98 101 97 90 93 94 93 88 Tobacco Manufactures 65.8 65.8 65.7 64.4 62.0 64.1 65.0 66.5 69.2 66.7 66.1 65.8 63.6 63.9 Tobacco and snuff 54 53 53 53 54 54 54 56 54 53 52 52 52 52 Cigars and cigarettes ...» 67 68 67 66 63 65 66 68 71 69 68 68 65 66 Paper and Printing .s. „. „....,..,. 121.2 122.9 124.8 125.1 124.4 124.9 124.8 125.9 125.2 123.4 122.4 121.5 119.7 118.6 Boxes, paper 7 132 139 142 143 141 138 139 140 142 139 136 133 129 126 Paper and pulp 123 125 126 128 128 128 129 129 130 130 130 130 128 126 Book and job printing 104 104 108 106 105 108 107 107 107 103 101 101 98 99 Newspaper and periodical printing ... 117 117 117 118 117 117 116 120 116 115 115 114 114 113 Chemicals, Petroleum, and Coal Products.... 137.5 141.5 143.9 146.3 145.7 147.1 148.2 149.2 151.8 154.7 '155.9 r157.3 159.0 160.2 Petroleum refining 123 125 127 127 127 129 128 129 130 131 132 132 133 132 Other than petroleum refining 141.1 145.6 148.0 150.9 150.3 151.7 152.9 154.1 157.1 160.5 161.6 163.4 165.4 167.0 Chemicals 168 172 173 179 180 181 184 187 190 192 194 194 194 195 Cottonseed oil, cake, and meal 106 107 109 101 88 95 93 93 93 94 r90 r97 99 92 D Ex ru pl g o g s i i s v t e s s ' preparations 129 • 132 * 136 * 13 * 8 14 * 1 141 14 * 4 14 * 6 1 * 52 152 15 * 3 1 * 57 162 1 * 64 Fertilizers 118 124 129 124 124 115 118 116 120 139 111 97 116 135 Paints and varnishes 136 140 145 148 145 144 144 144 145 142 141 137 131 127 Rayon and allied products 330 337 326 328 324 323 320 320 313 308 309 317 318 324 Soap 93 94 98 99 96 94 94 95 94 92 91 91 88 83 Rubber Products 106.1 111.7 113.0 113.3 111. 6 110.1 110.1 109.6 99.8 98.7 98.1 94.4 95.2 97.8 Rubber boots and shoes 78 82 82 79 75 78 80 78 n 16 75 75 76 72 Rubber tires and inner tubes 83 86 87 87 87 86 86 85 74 74 74 76 79 Rubber goods, other 179 192 194 200 196 189 187 189 75 173 170 156 154 161 175 r Revised. * Included in total and group indexes but not available separately. TOTAL NONAGRICULTURAL EMPLOYMENT [Thousands of persons] Employees in nonagricultural establishments Total nonagri- Military Year and month cultural Transpor- Financial, and naval e m m e p n l t o 1 y 2 - Total2 M t a u n ri u n f g a * c- Mining Con ti s o t n ruc- tat p i u on b li a c nd Trade* a s n e d r v m ic i e s , - G m o e v n e t r 2 n- forces utilities cellaneous SEASONALLY ADJUSTED 1941—June 39,296 33,153 12,221 889 1,644 3,220 6,865 4,204 4,110 1,740 July 39,903 33,760 12,605 914 1,668 3,264 6,944 4,242 4,123 1,857 August 40,101 33,958 12,615 923 1,666 3,302 7,027 4,246 4,179 1,944 September 40,016 33,873 12,548 908 1,683 3,303 6,968 4,241 4,222 1,992 October 40,192 34,049 12,599 892 1,776 3,292 6,989 4,251 4,250 2,014 November 40,603 34,460 12,735 892 1,924 3,310 7,043 4,266 4,290 December 40,905 34,762 12,789 892 2,156 3,322 7,017 4,274 4,312 1942—January 40,906 34,763 12,863 873 2,064 3,322 6,907 4,273 4,461 February 40,910 34,767 12,826 852 2,091 3,313 6,862 4,265 4,558 March r40,942 r34,799 r12,823 851 2,057 3,325 6,812 4,262 4,669 April r40,977 r34,834 r12,900 879 2,003 3,358 6,690 4,259 4,745 May 41,137 34,994 13,035 870 1,961 3,391 6,695 4,257 4,785 June 41,174 35,031 13,027 865 ( : 1,850 3,396 .V6,586 4,256 4,871 UNADJUSTED 1941—June ; 39,475 33,332 12,154 876 1,816 3,239 6,861 4,260 4,126 1,no July 39,908 33,765 12,391 888 1,895 3,290 6,837 4,300 4,164 1,857 August 40,292 34,149 12,595 900 1,921 3,326 6,897 4,300 4,210 1,944 September 40,710 34,567 12,777 906 1,936 3,367 7,008 4,325 4,248 1,992 October 40,783 34,640 12,805 915 1,960 3,365 7,070 4,256 4,269 2,014 November 40,756 34,613 12,763 911 1,961 3,322 7,146 4,229 4,281 December ... 41,080 34,937 12,734 908 1,874 3,296 7,511 4,227 4,387 1942—January 39,877 33,734 12,606 876 1,660 3,252 6,756 4,179 4,405 February 39,994 33,851 12,724 860 1,645 3,249 6,686 4,181 4,506 March r40,396 r34,253 r12,849 860 1,738 3,277 6,711 4,195 4,623 April r40,880 r34,737 r12,951 861 1,928 3,343 6,679 4,266 4,709 May . 41,263 35,120 13,046 860 2,077 3,385 6,667 4,309 4,776 June • .,..,...«.. 41,415 35,272 13,146 851 2,073 3,417 6,582 4,314 4,889 * Adjusted to Census of Manufactures through 1939. r Revised, t Not available for publication. 1 Includes self-employed persons, casual workers, and domestic servants not included in total of employees in nonagricultural establishments. 2 Excludes military and naval forces. NOTE.—Unadjusted data compiled by Bureau of Labor Statistics. Figures for June 1942 are preliminary- Back figures, adjusted for seasonal variation, may be obtained from the Division of Research and Statistics. AUGUST 1941 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 1941 1942 1941 1942 May June Feb. Mar. Apr. May June May June Feb. Mar. Apr. May June To N D t o a u n l r * d a u b r l a e b l g e o o g d o s o 1 ds1 1 1 1 2 1 3 4 8 1 . . . 9 8 3 1 1 1 2 3 2 7 5 1 . . . 9 1 1 1 1 1 3 2 4 3 3 5 . . . 8 0 1 r1 r1 3 1 4 2 5 7 3 . . . 1 2 5 r 1 1 1 3 2 4 6 3 9 . . . 1 0 9 1 1 1 3 5 2 7 2 2 . . . 1 5 4 1 1 1 3 2 5 8 1 5 . . . 4 9 6 1 1 1 4 2 6 4 2 3 . . . 1 9 1 1 1 1 5 2 7 2 7 3 . . . 2 9 9 1 1 2 7 4 1 8 2 0 . . . 3 1 6 r r 1 2 1 8 1 4 2 7 4 . . . 9 3 3 r1 2 1 8 2 4 4 6 4 . . . 0 7 9 1 2 1 9 3 4 1 2 6 . . . 8 3 5 1 2 1 9 3 4 4 7 6 . . . 5 5 3 Iron and Steel and Products 132.9 136.1 135.9 135.7 135.3 134.8 135.0 160.9 168.6 178.3 181.1 181.3 183.7 179.6 Blast furnaces, steel works, etc 141 144 149 150 151 152 152 173 180 191 194 193 197 187 Bolts, nuts, washers, and rivets 161 166 r171 r170 r172 174 176 234 248 r271 r276 285 292 292 Cast-iron pipe 94 97 97 98 98 98 95 110 115 125 126 130 133 135 Cutlery and edge tools 119 120 134 136 132 128 127 134 139 179 181 179 179 180 Forgings 103 105 123 125 128 129 131 153 165 216 r221 238 241 247 Hardware 117 118 94 95 92 89 92 142. 150 132 137 136 135 142 Plumbers' supplies 102 102 93 89 81 78 74 105 106 105 102 93 91 92 Stamped and enameled ware 218 220 209 212 206 204 204 265 279 300 309 305 310 319 Steam and hot-water heating 112 114 123 123 122 120 120 129 138 169 173 174 174 173 Stoves 113 116 94 92 90 87 84 119 125 103 105 106 101 100 Structural and ornamental metal work . 102 106 107 110 114 116 118 114 120 133 140 146 149 154 Tin cans and tinware 121 132 131 116 111 108 102 146 163 165 150 145 141 136 Tools 135 139 153 155 155 154 155 172 182 r225 235 238 241 243 Wirework 213 216 169 161 155 152 156 277 285 242 235 235 241 250 Machinery 162.5 167.7 189.7 193.9 197.7 200.5 203.5 217.2 229.9 294.8 r307.1 315.3 326.4 334.1 Agricultural implements 171 172 166 169 167 167 167 229 233 241 250 250 259 263 Cash registers, etc 151 163 178 177 175 179 184 196 216 260 261 262 293 287 Electrical machinery 154 159 215 224 Engines, turbines, etc 272 286 444 485 Foundry and machine-shop products.. 135 139 155 157 160 163 165 166 178 219 227 235 243 248 Machine tools 327 339 507 529 Radios and phonographs 174 181 207 210 209 196 189 192 200 279 291 292 283 283 Textile machinery 101 104 111 111 111 109 108 124 131 155 157 158 158 158 Typewriters 144 148 151 147 126 115 102 190 208 222 213 171 161 157 Transportation Equipment 171.7 177.8 r216.0 r224.8 r237.2 251.7 267.9 217.0 240.0 r337.2 r350.8r376.8 401.8 422.6 A A i u r t c o r m af o t. b i .# les 6,3 1 0 3 5 4 6,7 1 1 3 8 5 89 86 84 88 92 171 188 135 132 131 136 140 Cars, electric- and steam-railroad 80 85 85 93 Locomotives 59 62 76 84 Shipbuilding ; 310 338 434 504 Nonferrous Metals and Products 139.9 141.9 145.9 147.4 r144.3 144.5 143.8 166.7 174.6 202.3 r208.2 208.0 210.5 217.1 Aluminum1 234 229 322 322 Brass, bronze, and copper 184 189 247 262 Clocks and watches 116 117 110 111 112 114 113 143 148 154 160 168 177 182 Jewelry 104 107 107 106 r100 96 91 98 101 105 114 109 108 103 Lighting equipment 112 113 100 99 92 87 85 110 116 110 109 106 100 100 Silverware and plated ware „ .„.. 83 84 78 78 66 66 65 91 94 91 95 80 81 83 Smelting and refining .„..,.. 102 102 101 101 102 101 99 112 117 127 128 127 130 135 Lumber and Products 74.7 76.8 74.3 74.1 r73.4 73.3 73.5 78.0 83.9 86.0 86.7 T87.7 90.7 93.1 Furniture 100 104 102 101 97 96 95 103 110 116 116 114 116 113 Lumber, millwork 70 73 71 .71 r70 70 70 62 67 68 68 70 71 74 Lumber, sawmills 66 67 64 64 65 65 66 66 71 72 73 75 79 83 Stone, Clay, and Glass Products 95.6 97.1 93.9 94.3 95.4 94.3 93.6 97.8 100.2 102.3 103.7r104.9 105.7 105.1 Brick, tile, and terra cotta 73 75 68 68 70 71 70 69 72 67 69 71 72 73 Cement 78 80 76 78 80 82 84 85 90 85 89 91 95 100 Glass 124 126 126 126 126 124 121 150 154 166 165 r165 167 160 Marble, granite, and slate 47 46 39 39 40 34 37 39 35 30 31 33 29 32 Pottery 113 114 121 120 120 118 116 114 118 136 137 134 134 131 Textiles and Products 112.5 112.6 113.0 113.5 113.1 111.8 109.0 110.4 111.4 r126.8 129.2 129.0 128.5 123.4 Fabrics 105.1 106.2 104.9 105.0 r105.3 104.8 104.7 109.3 111.6 123.7 124.8 126.8 129.0 129.3 Carpets and rugs 89 90 81 77 71 67 70 90 90 85 81 76 77 82 Cotton goods 106 109 113 113 114 114 115 117 120 145 146 149 153 153 Cotton small wares 103 104 109 111 112 111 111 114 116 143 148 156 160 161 Dyeing and finishing textiles 141 139 137 138 138 135 132 134 133 149 152 157 150 147 Hats, fur-felt 81 83 72 72 68 58 65 77 86 81 73 66 59 66 Hosiery 143 143 130 129 125 122 120 158 158 157 154 149 149 149 Knitted outerwear. 77 79 79 80 82 81 79 72 75 79 83 86 86 83 Knitted underwear 82 79 86 88 89 89 89 85 83 102 107 111 110 112 Knitted cloth 155 160 150 r154 156 155 152 149 154 157 164 171 171 166 Silk and rayon goods „ 69 69 62 62 63 64 64 63 64 66 68 71 71 71 Woolen and worsted goods 107 108 104 103 104 106 106 113 117 121 123 127 132 134 Wearing apparel 124.2 121.9 126.4 r127.6 126.0 122.7 113.8 105.9 104.1 r125.3 r129.9r125.2 119.5 104.2 Clothing, men's 119 120 122 r123 r123 122 118 101 107 r117 123 r121 122 112 Clothing, women's 165 159 168 170 166 161 140 132 119 159 163 r153 141 110 Corsets and allied garments 118 118 117 117 116 113 109 137 139 158 161 159 151 142 Men's furnishings 122 122 114 115 114 112 112 130 131 140 141 139 140 140 Millinery 76 63 84 86 79 66 52 51 43 76 83 66 45 38 Shirts and collars 132 132 133 133 133 131 128 131 r136 149 152 159 158 151 r Revised. * Included in total and group indexes but not available for publication separately. 1 Indexes adjusted to Census of Manufactures through 1939. For back figures see BULLETIN for February 1941, p. 166. FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Factory Employment and Payrolls—Continued [Index numbers of the Bureau of Labor Statistics; adjusted to Census of Manufactures through 1937 1923-25 average = 100] Factory employment Factory payrolls Industry and group 1941 1942 1941 1942 May June Feb. Mar. Apr. May June May June Feb. Mar. Apr. May June Leather and Manufactures 95.5 98.1 100.2 101.9 100.5 98.7 97.1 91.0 97.2 113.3 117.2 r115.7 112.6 112.5 Boots and shoes 93 95 97 99 97 96 94 87 92 108 112 110 107 107 Leather 90 94 97 98 96 94 92 98 107 123 124 r124 123 122 Food and Kindred Products 127.4 135.2 133.5 r131.7 132.8 135.5 141.2 134.7 144.4 150.7 150.5 r152.9 160.3 169.9 Baking 149 152 150 150 150 151 153 148 154 160 161 160 166 174 Beverages 293 310 284 289 r298 317 312 362 391 356 378 r396 445 428 Butter 110 114 97 103 111 119 128 97 105 98 103 r109 119 130 Canning and preserving 100 136 112 97 104 106 134 91 134 129 109 117 120 160 Confectionery 81 80 91 93 88 83 79 84 86 104 109 103 97 98 Flour 77 78 80 79 78 77 79 75 79 91 87 86 88 92 Ice cream ,. 87 93 69 72 78 87 94 75 83 67 69 74 82 92 Slaughtering and meat packing 117 120 138 134 134 138 144 133 138 163 160 162 170 183 Sugar, beet 47 48 43 42 46 50 53 54 57 55 56 61 67 72 Sugar refining, cane 103 103 89 92 94 93 90 90 102 79 86 r9l 90 92 Tobacco Manufactures 64.9 65.5 65.5 65.4 64.4 62.7 63.7 67.1 70.2 72.3 70.6 73 8 73.3 77.2 Tobacco and snuff 53 52 55 52 52 51 51 67 67 70 70 73 71 74 Cigars and cigarettes ,. 66 67 67 67 66 64 65 67 70 72 71 74 73 77 Pape B r o a x n es d , P p r a i p nt e in r. g : „„ , . 1 13 2 0 0.8 1 13 2 5 1.6 1 13 2 5 3.3 1 1 2 3 1 4 .9 1 13 2 1 1.1 1 1 1 2 9 7 .4 1 12 1 3 7.4 1 15 2 9 4.9 1 17 2 0 8.6 1 17 3 7 5.1 1 1 3 7 4 6 .8 1 1 3 7 3 3 .2 1 16 3 9 2.0 1 16 2 4 9.8 Paper and pulp. 123 125 130 130 130 128 126 146 158 174 176 172 171 166 Book and job printing 103 102 105 101 100 98 97 96 95 100 98 96 95 93 Newspaper and periodical printing US 117 115 115 115 114 113 114 114 113 114 114 114 114 Chemicals, Petroleum, and Coal Products... 135.9 137.5 154.9 r158.5 158.8 157.1 156.3 165.5 173.6 212.3 r219.4 r222.8 225.7 226.8 Petroleum refining .... 122 125 130 131 132 132 133 146 157 178 180 r178 179 182 Other than petroleum refining 139.3 140.5 161.1 r165.2 rl65.4 163.2 161.9 171 5 178.8 222.8 231.6 236.5 240.0 240.8 Chemicals 167 172 189 193 193- 194 195 222 233 279 288 293 303 306 Cottonseed oil, cake, and meal 72 66 105 r95 r80 68 57 66 62 110 r99 r86 70 61 Druggists' preparations 125 127 155 156 157 157 158 143 150 193 200 203 206 202 Fertilizers . 127 92 153 166 r156 126 100 127 93 155 176 r181 148 117 Paints and varnishes 141 145 141 141 139 136 131 170 178 177 179 177 177 170 Rayon and allied products 324 327 313 313 310 312 315 356 362 391 394 388 391 396 Soap 92 93 92 93 92 87 83 126 129 135 137 137 130 127 Rubb R er u b P b r e o r d u b c o ts o ts and shoes ... .• 1 7 0 5 6.4 1 7 1 8 0.7 9 75 8.9 9 75 8.9 9 74 5 2 9 13 5.5 9 68 6 9 1 8 2 8 8 7 1 9 4 8 1 1 1 9 2 6 7.4 r13 9 2 9 .4 1 9 3 3 0.3 1 10 3 2 6.7 1 9 3 7 6.8 Rubber tires and inner tubes 83 86 74 74 74 76 79 111 122 102 106 106 113 119 Rubber goods, other 182 190 174 172 159 156 159 207 225 222 229 225 230 215 r Revised. * Included in total and group indexes but not available separately. NOTE.—Figures for June 1942 are preliminary. Back data may be obtained from the Bureau of Labor Statistics. Underlying figures are for payroll period ending nearest middle of month. HOURS AND EARNINGS OF WAGE EARNERS IN MANUFACTURING INDUSTRIES [Compiled by the Bureau of Labor Statistics! Average hours worked per week Average hourly € arnings (cents per hour) Industry and group 1941 1942 1941 1942 Apr. May Jan. Feb. Mar. Apr. May Apr. May Jan. Feb. Mar. Apr. May Total 40.0 40.8 41.5 42.2 42.5 42.4 42.6 70.8 72.6 80.1 80.3 80.9 81.9 83.1 Durable goods.. 41.5 42.5 43.7 44.4 44.7 44.7 45.0 78.5 80.6 88.9 89.3 89.9 91.0 92.3 Iron and Steel and Products 40.8 41.5 41.3 42.1 42.6 42.2 42.6 84.1 85.8 90.4 90.9 91.6 92.6 93.3 Machinery.... 44.5 45.4 47.1 47.3 r47.8 47.5 47.7 78.9 81.8 89.9 90.6 91.3 92.4 93.7 Transportation Equipment 39.7 42.4 46.0 46.2 46 6 47.0 46.9 92.3 94.5 106.9 106.1 105.1 105.5 106.7 Nonferrous Metals and Products 42.0 42.8 43.8 43.8 44.1 44.2 44.0 74.9 77.0 86.5 87.2 88.4 89.7 91.1 L St u o m n b e, e r C a la n y d , P a r n o d d G uc la t s s s . Products 4 3 0 8 . . 2 0 4 3 0 8 . . 1 5 3 3 8 7 .2 9 4 3 0 8 . . 5 8 4 39 0 . . 0 5 r3 4 8 0 . . 8 4 4 3 1 9 . . 2 0 5 6 4 9 . . 7 5 5 7 5 1 . . 6 0 6 7 0 5 . . 7 1 6 7 1 5. . 9 3 6 7 2 6 . . 0 2 '7 6 6 3 . . 7 3 6 7 4 7 . . 6 1 Nondurable goods ,..>.« 38.4 38.9 39.1 39.7 39.8 39.7 39.7 62.9 64.1 70.1 70.2 70.7 71.4 72.2 Textiles and Products „ 37.3 37.9 37.7 38.9 39.1 39.1 39.0 52.4 53.0 58.9 59.2 59.6 59.9 60.4 Fabrics 38 3 38.8 39.3 40.1 40.1 40.1 40.3 50.9 52.0 57.4 57.4 57.6 58.3 59.2 Wearing apparel . . 35.3 36.2 34.4 36.6 r37.2 r37.0 36.4 55.3 55.0 62.0 62.9 r63.5 r63.2 62.7 Leather and Manufactures 38.0 37.5 38.8 39.9 40.0 39.3 38.6 57.9 59.0 64.9 65.8 66.3 67.8 68.2 Food and Kindred Products 39 6 40.3 40 8 40 5 40 7 40 4 40.9 65 5 67.0 71.8 71.8 72.3 73.2 74.1 Tobacco Manufactures 33 2 36.9 37 9 37.0 36 6 37 6 37.7 50.6 50.9 54.9 54.4 53.7 55.4 56.5 Paper and Printing 39.6 40.0 40.1 40.0 40.1 39.6 39.5 80.5 81.1 85.2 85.4 86.2 86.8 87.6 Chemicals, Petroleum, and Coal Products 39 9 39.8 40.2 40.6 40 7 40 9 41.0 77.3 80.6 88.6 88.1 88.9 90.0 91.7 Petroleum refining . 37 0 37.0 38.8 38.7 r38.2 38.5 99.5 100.8 110.7 110.4 110.4 r110.3 109.8 Other than petroleum refining.... 40.7 40.7 40\9 41.1 41.3 41.6 41.8 70.7 74.4 82.2 81.9 83.0 84.4 86.7 Rubber Products 39.4 40.3 39.3 39.7 40.6 r41.0 42.3 80.4 81.6 88.7 88.2 r90.1 r91.0 92.3 r Revised. 843 AUGUST 1941 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CONSTRUCTION CONTRACTS AWARDED, BY TYPES OF CONSTRUCTION [Figures for 37 States east of the Rocky Mountains, as reported by the F. W. Dodge Corporation. Value of contracts in millions of dollars.] Nonresidential building Public works Month Total R b e u si i d ld e i n n t g ial Factories Commercial Educational1 Other1 a u n t d i l p it u ie b s l 1 ic 1941 1942 1941 1942 1941 1942 1941 1942 1941 1942 1941 1942 1941 1942 January 305.2 316.8 111.3 102.8 55.9 75.4 26.9 17.7 11.6 9.1 24.2 21.0 75.1 90.9 February 270.4 433.6 116.5 168.0 37.8 84.5 20.9 21.8 7.9 9.2 23.5 54.2 63.9 95.9 March .. . 479.9 610.8 147.9 219.3 121.8 112.7 33.1 36.8 10.4 10.7 36.1 71.6 130.6 159.7 April 406.7 498.7 166.5 162.1 66.2 145.1 36.2 30.9 11.2 12.4 29.7 46.5 96.9 101.7 May 548.7 673.5 201.3 148.0 81.1 178.0 50.8 23.8 17.1 10.1 53.5 86.0 144.9 227.7 Tune . . 539.1 1,190.3 205.6 185.5 102.3 271.8 35.7 46.2 13.5 15.4 49.0 234.9 133.0 436.4 July 577.4 205.0 109.8 37.2 19.1 54.5 151.7 August 760.2 231.5 135.7 69.8 11.7 69.4 242.0 September 623.3 175.7 113.5 51.9 8.2 44.7 229.3 October 606.3 171.8 118.6 48.6 13.9 88.5 165.0 November 458.6 116.5 122.7 29.3 7.3 33.6 149.2 December 431.6 104.3 116.1 30.7 8.8 15.3 156.3 Year 6,007.5 1,953.8 1,181.5 471.2 140.9 522.1 l,738.«0 1 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 ownership1 Private ownership1 Month 1937 1938 1939 1940 1941 1942 1937 1938 1939 1940 1941 1942 1937 1938 1939 1940 1941 1942 January 243 192 252 196 305 317 112 118 148 93 124 198 130 75 104 104 181 119 February 188 119 220 201 270 434 69 51 111 82 105 310 119 68 109 119 166 123 March 231 227 301 272 480 611 66 95 128 95 269 473 165 132 173 177 211 138 April 270 222 330 301 407 499 74 99 160 103 184 355 195 123 170 197 223 144 May 244 283 308 329 549 674 93 144 135 112 267 569 151 139 174 217 281 105 June 318 251 288 325 539 137 108 128 147 314 180 143 161 177 225 July 322 240 300 399 577 131 98 137 205 348 191 142 163 194 229 August . 281 313 312 415 760 104 171 158 195 520 178 142 154 220 240 September 207 301 323 348 623 80 160 144 144 403 127 141 179 204 220 October 202 358 262 383 606 78 203 92 175 371 124 154 170 209 235 November 198 302 300 380 459 93 179 144 195 298 106 123 156 186 161 December 209 389 354 456 432 115 279 225 258 288. ....... 94 110 129 198 144 Year 2,913 3,197 3,551 4,004 6,007 1,152 1,705 1,708 1,802 3,492 1,761 1,492 1,842 2,202 2,515 l 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 reported by Dun & Bradstreet. Amounts in thousands of dollars.] [Figures for 37 States east of the Rocky Mountains, as reported by the F. W. Dodge Corporation. Value of contracts in thousands of dollars.] Number Liabilities Federal Reserve 1942 1941 district 1942 1941 1942 1941 Federal Reserve district June May June June May June June May June Boston 74,247 32,564 52,027 Boston 69 80 86 861 1,072 1,063 New York 131,414 83,087 112,850 New York 310 351 377 3,450 3,392 3,763 Philadelphia ...... 39,461 23,746 38,158 Philadelphia 46 46 55 428 322 856 Cleveland 38 53 41 536 512 351 Cleveland . .. 114,284 61,933 51,477 Richmond 19 35 27 882 485 152 160,738 68,914 92,503 Atlanta 32 45 38 393 688 319 Atlanta ,. 174,588 84,979 42,323 Chicago 119 142 130 1,147 1,069 1,097 St. Louis 20 22 28 166 129 233 Chicago . .. 130,547 98,449 73,113 Minneapolis 11 10 14 176 49 137 St. Louis 101,615 45,147 26 926 Kansas City 40 50 35 487 398 335 Minneapolis 121,575 14,124 12,651 Dallas 10 21 21 210 253 144 San Francisco 90 100 118 1,170 1,470 999 Kansas City 54,918 66,431 15,247 Dallas 86,877 94,143 21,831 Total 804 955 970 9,906 9,839 9,449 Total (11 districts) 1,190,264 673,517 539,106 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. 844 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MERCHANDISE EXPORTS AND IMPORTS [In millions of dollars] Merchandise exports1 Month 1938 1939 January 289 213 February 262 219 March 275 268 April 274 231 May 257 June 233 July 228 August 231 September 246 October 278 November 252 December 269 Jan .-Apr 1,101 ot ot o Merchandise imports2 1940 1941 1942 1938 1939 1940 370 325 479 171 178 242 347 303 479 163 158 200 351 357 609 173 190 217 323 387 682 160 186 212 324 385 148 202 350 330 146 179 317 365 141 169 250 351 460 166 176 289 295 425 168 182 332 344 3666 178 215 292 328 492 176 235 368 322 652 171 247 930 1,391 1,372 2,249 667 713 ot ot ot Excess of exports 1941 1942 1938 1939 1940 1941 1942 229 254 118 35 128 96 226 234 254 99 61 147 69 225 268 272 102 77 134 89 336 287 234 115 45 111 100 448 297 109 47 112 88 280 87 57 138 50 278 87 61 84 87 221 283 65 74 130 178 195 262 79 107 101 162 207 304 100 117 137 3362 224 281 76 57 104 211 253 344 98 121 69 308 871 1,018 1,014 434 217 520 354 1,234 1 Including both domestic and foreign merchandise. 2 General imports, including merchandise entered for immediate consumption and that entered for storage in bonded warehouses. 3 Figure overstated due to inclusion in October export statistics of an unusually large volume of shipments actually exported in earlier months. 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 I [ Index numbers; 1935-39 average = 100] RAILROADS [In millions of dollars] For- Mis- Mer- Total Coal Coke Grain L s i to v c e k - p u r e c o s t t d s - Ore l e a e n l e - - c l d . h i c a s . n l e ' . o r r p e T a v e i o e r l a w n ta t u a i l n e y s g e r x a T p i o l e w t n a a s l y es o r i p n a e N c i r l o w a e m t t a in e y g i m n N c e o t me SEASONALLY ADJUSTED SEASONALLY ADJUSTED* 1941—April 382 324 58 r16 1941—May 135 138 182 124 91 130 266 136 102 May 439 346 r92 50 June 139 156 189 126 88 136 152 139 102 June 474 363 110 68 July 138 150 200 112 83 149 156 140 100 July 471 370 100 57 August 139 158 199 103 84 152 155 141 99 August 485 377 108 65 September.. 130 133 176 111 84 138 149 135 97 September 464 379 85 42 October... 127 121 165 97 95 140 204 133 97 October 453 403 49 10 N D o ec v e e m m b b e e r r . . . . 1 13 3 5 7 1 12 1 1 1 1 1 6 5 7 9 1 1 1 2 8 4 1 9 0 3 1 1 1 4 4 6 5 2 20 4 4 6 1 14 4 9 4 1 9 0 9 0 N D o ec v e e m m b b e e r r 4 4 8 7 6 6 4 4 0 1 3 0 7 7 3 6 3 3 3 7 1942—January ... 140 119 153 142 99 156 186 152 97 1942—January 495 413 82 40 February. . 139 116 150 131 95 159 187 151 100 February 519 420 99 58 March 136 122 168 119 97 149 282 143 92 March 542 446 96 52 April 143 160 200 117 101 159 289 141 80 April 584 471 113 70 May 143 164 197 115 98 155 289 142 62 May 618 487 131 June........ 141 160 199 113 103 159 183 144 60 UNADJUSTED UNADJUSTED 1941—April 375 323 52 7 1941—May 131 117 167 107 82 135 276 138 102 May 442 354 r88 43 June 136 131 170 123 69 141 265 141 101 June 455 362 93 53 July 138 127 172 163 70 149 283 139 99 July 485 379 106 64 August 140 139 167 125 80 160 271 141 99 August 494 382 111 66 September.. 145 140 172 122 111 149 261 150 102 September... 489 385 104 59 October... 144 138 165 104 146 147 232 151 101 October 518 424 94 54 November.. 141 135 168 115 117 143 199 150 101 November... 457 388 69 29 December.. 128 125 182 113 97 129 69 138 96 December 480 399 81 55 1942—- M A F M Ja e p a a n b r y r u i r c l u a h a ry ry 1 1 1 1 1 2 3 3 2 2 9 8 6 9 9 1 1 1 1 1 3 3 3 3 2 6 9 5 2 5 • 1 1 1 1 1 7 7 8 8 8 6 5 4 4 1 1 1 1 1 9 2 0 0 1 9 5 0 2 0 " - 9 8 7 9 7 9 5 6 0 7 1 1 1 1 1 5 6 4 5 4 9 1 9 3 0 3 2 0 4 4 1 7 3 7 6 8 3 1 1 1 1 1 4 4 3 3 3 4 2 5 9 4 9 9 8 6 9 6 2 1 2 3 1942— M A M F J e p a a a b n r y r i r u c l u h a a ry ry 5 4 4 5 6 7 8 0 4 6 3 1 1 0 2 4 4 4 3 4 9 4 1 9 7 1 8 2 6 0 1 1 6 6 9 0 1 9 6 2 2 0 P6 2 2 5 4 4 6 4 8 7 June 139 135 179 111 81 165 318 145 60 p Preliminary. r Revised. NOTE.—For description and back data, see pp. 529-533 of the BULLETIN for * Derived from Interstate Commerce Commission data. June 1941. Based on daily average loadings. Basic data compiled by Associa- NOTE.—Descriptive material and back figures may be obtained tion of American Railroads. Total index compiled by combining indexes for classes from the Division of Research and Statistics. with weights derived from revenue data of the Interstate Commerce Commission. AUGUST 1941 845 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 numbersbased on value figures; 1923-25 averagei = 100.] [Percentage change from corresponding period of preceding year.] Seasonally adjusted Unadjusted Department May 1942 Five mos., 1942 1939 1940 1941 1942 1939 1940 1941 1942 NET SALES—entire store 0 +18 J F a e n b u ru ar a y S ry A L . E . S ... 8 8 8 8 9 9 2 0 1 1 0 0 1 3 1 1 3 2 8 6 6 6 9 9 7 7 1 1 8 7 2 9 1 9 0 9 8 M Ba a s i e n m S e t n o t r e Store — +2 1 + + 1 1 7 9 March 88 89 103 124 82 86 93 118 Women's, girls', and infants' apparel and A M p ay ril.... 8 8 8 7 8 8 9 9 1 1 0 0 4 5 1 1 1 0 7 8 8 8 8 7 8 8 6 9 1 10 0 5 6 1 1 1 0 5 8 ac M ce a s in so s r t i o e r s e1 ,..» + + 3 2 + + 1 1 8 8 June 86 91 104 104 83 87 100 100 Women's and misses' coats and suits... +17 +38 July 87 92 115 60 64 79 Women's and misses' dresses -6 +3 August ,. 88 98 134 69 77 106 Blouses, skirts,£sportswear, sweaters, September 90 97 116 97 105 125 knit apparel , -5 +19 October 92 94 105 99 101 112 Juniors' and girls' wear 0 +18 November 93 100 116 106 114 133 Aprons, housedresses, uniforms -7 +7 December 95 101 111 168 179 197 Women's underwear, slips, negligees +5 +19 Infants' wear +14 +24 Year 90 94 110 Women's and children's shoes +3 +18 STOCKS Base F m u e r n s t . 2 **. -31 +3 +4 +19 January 67 68 71 93 60 61 64 83 Men's/and boys' wear ,. -10 +22 February.. 68 71 73 102 65 68 70 97 Main store1 , -12 +22 M Ap a r r i c l h 6 6 8 7 6 7 9 0 7 7 4 4 1 1 1 0 7 8 6 6 9 9 7 7 1 1 7 7 6 5 1 1 2 1 2 1 M M e e n n ' ' s s c fu lo rn th is i h n i g ngs, hats, caps - - 2 6 5 + +1 3 4 2 M J J A O N D S u u e o c u e a l n p t c y v g y o e t e e u e . b m m s m e t b r b b . e e e r r r . . 6 6 6 6 6 6 6 7 6 7 7 7 8 9 8 1 6 6 6 6 7 7 7 7 8 7 9 8 2 0 1 1 8 9 8 9 7 9 9 7 7 7 2 5 2 2 7 4 126 8 6 6 6 6 6 7 7 2 4 5 8 4 0 7 1 6 6 6 8 7 6 7 7 1 4 6 3 0 6 3 9 1 1 8 8 7 9 0 7 7 1 4 6 6 5 8 3 3 0 P 1 1 2 2 9 8 Hom M B e a a s i f e n B u F D D M m u r o s o r e a n r a t y m n j o n p i o s ? r s i e ' e r e t h s r c u 1 t i a l i r i e o n c p e s t p , , g h f l l s i b c i o n a u e o g n d r r c t s a a c e , i n o s m n d v s ( a e , f r r t u e t u in r r f p e n r g i h s i s g s s o e h e l r i s s a n t , t e g o s r s p r y s r , i n w gs ash- + + -7 - 5 5 1 - - - 4 2 4 + + + + 2 1 1 7 0 7 4 + + + 1 2 1 7 2 6 Year 68 69 83 ers, stoves, etc.) -37 +12 Domestics, blankets, comforters, linv Preliminary. ens, towels -1 +28 p. B 6 a 3 c 1 k , f f o ig r u O re c s to .— be D r e 1 p 9 a 3 r 8 tm , p en . t 9 1 s 8 to , r a e n d sa f l o es r , J s a e n e u a B r U y L L 1 E 94 T 1 IN , p f . o 6 r 5 A ; d u e g p u a st r t 1 m 9 e 3 n 6 t , Ba li s n e e m n e s n , t tow (i e n l c s l ) u 2 ding domestics, blankets, +1 +19 store stocks, see BULLETIN for March 1938, p, 232. Piece goods (dress and coat yard goods, all materials) +20 +32 WEEKLY INDEX OF SALES Main store +20 +31 [Weeks ending on dates shown. 1935-39 average = 100.1 Basement , +20 +34 Shoes (basement only) 0 +13 1939 1940 1941 1942 * Based on reports from 256 stores. Reports of total sales from a larger June10.... ...105 June 8 .120 June 7 ..127 June 6.... .135 number of stores, including many stores not reporting sales by depart- 17.......98 15 .107 14 ..120 13.... .117 ments, showed a decrease of 3 per cent for May and an increase of 16 July 2 1 4.......8 8 4 5 8 . 8 9 9 2 2 2 8 1 .. . 1 1 0 0 7 9 2 2 7 0 . . . .. . . . . . 1 1 1 0 6 0 pe 1 r G ce r n ou t p fo r to f t i a v l e s m fo o r n t m hs a i o n f s 1 t 9 o 4 r 2 e , a in s c i l n u d d i e c a s t a e l d e s i n i n t h d e e t p a a b r l t e m b e e n lo ts w n . ot shown 8.... ...62 July 6 . 67 July 5 .. 86 July 4.... . 84 separately. 15.......73 13 78 12 93 11.... .102 2 Group totals for basement are not strictly comparable with those shown 22 67 20 .. 72 19 . 89 18.... . 93 for main store owing chiefly to inclusion in basement of fewer departments 29..... .. 66 27....... 69 26 87 25.... 92 and somewhat different types of merchandise. SALES BY FEDERAL RESERVE DISTRICTS AND BY CITIES [Percentage change from corresponding period of preceding year.] J 1 u 9 n 4 e 2 M 19 a 4 y 2 Six J 1 u 94 n 2 e M 19 a 42 y m 1 S 9 o i 4 x s 2 . J 1 u 94 n 2 eM 19 a 4 y 2 m 1 S 9 o i 4 x s 2 . J 1 u 94 n 2 eMay m 1 S o 9 i 4 s x . 2 United States.. -3 +14 Cleveland (cont'd) Chicago (cont'd) Dallas +7 -7 +9 Boston +4 +0 +15 Youngstown -13 -16 +5 Fort Wayne.... +13 —2 +23 Shreveport +14 +6 New Haven +7 +7 +17 Erie +17 +10 +26 Indianapolis +14 -1 +18 Dallas 0 -12 Portland +17 +11 +24 Pittsburgh -5 +12 Des Moines +5 +9 Fort Worth +8 — 14 +9 Boston 0 +14 Wheeling -2 —6 +11 Sioux City +2 +5 Houston +3 -3 +10 Springfield +9 +22Richmond +12 +4 +21 Detroit +9 +19 San Antonio +19 0 .+18 Providence +4 0 +15 Washington +16 +12 +27 Flint -18 -23 -10 SiIan Francisco +14 +5 +20 NewYork -5 +11 Baltimore +13 +3 +22 Grand Rapids.. -10 -13 +5 Phoenix +19 +8 +26 Bridgeport +5 +5 +20 Winston-Salem... -21 0 Lansing +4 -14 +6 Bakersfield -5 -5 +3 Newark -5 -8 +10 Charleston, S. C. +30 +30 +30 Milwaukee +5 -2 +18 Fresno -6 — 10 +6 Albany -19 -23 -2 Lynchburg -1 -11 +11 Stt,. Louis +8 -5 +14 Long Beach +27 +16 +35 Binghamton.... -1 +11 Norfolk +22 +12 +32 •Fort Smith +42 +28 +41 Los Angeles +3 +10 Buffalo +4 +19 Richmond +11 +2 +15 Little Rock +27 +10 +21 Oakland and Elmira +10 -4 +19 Charleston,W.Va. — 15 -20 0 Quincy —2— 18 +7 Berkeley +31 +18 +33 Niagara Falls... +24 +26 +37 Huntington -5 +4 Evansville +11 -9 XI Sacramento +11 +6 +21 New York City. -4 +10 Atlanta. +7 +11 Louisville -18 San Diego +24 +13 +32 Poughkeepsie... +3 -10 +10 Birmingham +11 +27 St. Louis +10 -4 San Francisco.... +10 +7 +15 Rochester -2 -2 +12 Montgomery.... +9 +13 -22 -24 +17 San Jose +9 +5 +16 Syracuse -2 -8 +11 Jacksonville +12 +11 Memphis +11 +1 -8 Santa Rosa +9 +4 +19 Ph T L il r a a e n d n c e t a l o p s n t h e i r a + + + 1 4 6 5 +3 + + + 2 1 1 2 2 6 M T A a t i l m a a m n p t i a a +11 0 + + 1 4 5 M K ~ aa i D n nn e n ss n e a* a v s p e C r ol i i t s y , + + + 7 2 9 -1 — - 0 4 6 + + + 1 1 1 8 0 2 B V St o a o i l s c le e k j t a o o n n a d nd Napa + + 2 4 7 7 + + 2 4 6 0 + + 3 5 2 4 P R h e i a l d a i d n e g lphia.... + + 1 5 1 + — 2 2 + + 1 1 8 8 M Ba a t c o o n n R ... o r uge.... + + 1 7 6 +19 + + 2 7 2 H To u p tc ek h a inson.... - — 2 0 10 + + 1 2 2 Po N rt a l m an p d a + + 2 2 0 2 + + 1 1 4 5 + + 2 2 9 4 Wilkes-Barre.... +6 41 +17 New Orleans +13 +8 +18 Wichita +24 +13 +29 Salt Lake City.. +31 +9 +27 Cl Y e A C C C v o i l o k e e n r r l l v u k a c o e i n m n n l d a n b n u a d t s i + + + + + + 1 1 2 9 3 7 6 0 - - 9 1 + + + + + + 1 2 1 2 1 1 9 5 2 4 0 5 Chf J K N C C at a c n h a h c a s o a g i k c h t o x s t a v v o a g i n i n l l o l o l e e . o . ga + + + + + 1 3 6 4 2 2 - - - - - 6 4 5 7 9 0 + + + + + + 1 1 1 1 8 9 6 8 3 2 T O K O J S o u t m k a . p l n l l s a a J s i a o h h n a s a o s e m p C a h it C y i . t . y ., , + + + + + 1 2 1 4 8 2 2 1 - — - 2 _ 5 0 9 0 4 + f 2 t 0 B E T W S Sp e a v e a c a o l e l l o t k l r i t a n m e a l e g n t W a t h e a a m lla + + + + + + 1 3 1 3 9 9 7 2 7 0 + + + + - 2 1 3 6 9 2 6 0 + + + + + + 1 3 1 1 2 2 7 5 0 2 1 1 Toledo i. +7 +16 Peoria -16 +5 +4 +25 Yakima -11 +1 r Revised. * Not available. 846 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

WHOLESALE PRICES, BY GROUPS OF COMMODITIES [Index numbers of the Bureau of Labor Statistics. 1926 *100] Other commodities All Farm Year, month, or week m c t o o ie m d s i - - p u r c o t d s - Foods Total H p l i r e d o a e d t s u h a c e n t r s d p T ro ex d t u i c le ts F li u g e h l ti a n n g d a p n M r d o e d m t u a e c ls t t a s l m B a u t i e ld ri i a n l g s c C a a h l l s l e i a m ed n i d - i f n H u g r o n g u i o s s o e h - d - s l M an is e c o e u l s products 1929 95.3 104.9 99.9 91.6 109.1 90.4 83.0 100.5 95.4 94.0 94.3 82.6 1930 86.4 88.3 90.5 85.2 100.0 80.3 78.5 92.1 89.9 88.7 92.7 77.7 1931 73.0 64.8 74.6 75.0 86.1 66.3 67.5 84.5 79.2 79.3 84.9 69.8 1932 64.8 48.2 61.0 70.2 72.9 54.9 70.3 80.2 71.4 73.9 75.1 64.4 1933 65.9 51.4 60.5 71.2 80.9 64.8 66.3 79.8 77.0 72.1 75.8 62.5 1934 74.9 65.3 70.5 78.4 86.6 72.9 73.3 86.9 86.2 75.3 81.5 69.7 1935 80.0 78.8 83.7 77.9 89.6 70.9 73.5 86.4 85.3 79.0 80.6 68.3 1936 80.8 80.9 82.1 79.6 95.4 71.5 76.2 87.0 86.7 78.7 81.7 70.5 1937 86.3 86.4 85.5 85.3 104.6 76.3 77.6 95.7 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 1941 87.3 82.4 82.7 89.0 108.3 84.8 76.2 99.4 103.2 84.6 94.3 82.0 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 76.9 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 79.2 98.6 106.4 87.4 97.2 85.1 October... 92.4 90.0 88.9 93.4 112.6 90.9 79.6 103.1 107.3 89.7 99.5 86.4 November. 92.5 90.6 89.3 93.5 114.1 91.1 78.8 103.3 107.5 89.8 100.6 87.3 December. 93.6 94.7 90.5 93.7 114.8 91.8 78.4 103.3 107.8 91.3 101.1 87.6 1942—January... 96.0 100.8 93.7 94.6 114.9 93.6 78.2 103.5 109.3 96.0 102.4 89.3 February.. 96.7 101.3 94.6 94.9 115.3 95.2 78.0 103.6 110.1 97.0 102.5 89.3 March 97.6 102.8 96.1 95.2 116.7 96.6 77.7 103.8 110.5 97.1 102.6 89.7 April ^98.7 104.5 98.7 P95.6 119.2 97.7 77.7 *103.8 110.2 97.1 102.8 90.3 May P98.8 104.4 98.9 P95.7 118.8 98.0 78.0 p103.9 110.1 97.3 102.9 90.5 June P98.6 104.4 99.3 P95.6 118.2 97.6 78.4 p103.9 110.1 97.2 102.9 90.2 Week ending 1942—March 14.. 97.1 102.3 95.8 95.2 116.4 95.9 78.2 103.7 110.2 97. 104.1 89.4 March 21.. 97.2 103.1 95.5 95.3 116.6 95.9 78.2 103.7 110.4 97. 104.1 89.7 March 28.. 97.4 103.4 95.9 95.3 117.6 95.9 78.1 103.7 110.6 97. 104.1 89.7 April 4.... 97.9 104.2 97.2 95.6 118.1 97.0 78.3 103.8 110.5 97. 104.3 89.6 April 11... 98.1 104.6 97.0 95.6 119.8 97.1 77.9 103.9 110.5 97. 104.3 89.7 April 18... 98.3 105.2 98.6 95.5 119.8 97.0 78.1 103.9 108.8 97. 104.4 89.6 April 25... 98.6 104.8 99.6 95.6 119.8 97.0 78.5 103.9 108.8 97. 104.4 90.0 May 2 98.7 104.8 99.9 95.6 120.0 97.2 78.6 103.9 108.7 97. 104.6 89.6 May 9 98.6 104.0 99.3 95.8 120.2 97.3 78.7 103.9 110.0 97.3 104.6 89.9 May 16 *98.5 104.3 98.2 P95.9 119.8 97.3 78.8 ^104.0 110.1 97.3 104.6 90.2 May 23.... p98.7 104.8 99.1 P95.9 119.2 97.2 78.9 ^104.0 110.0 97.3 104.6 90.2 May 30..., P98.8 106.0 99.4 119.0 97.2 78.9 P104.0 109.9 97.3 104.5 90.1 June 6 P98.7 105.6 99.7 95.9 118.8 97.2 78.9 p104.0 109.9 97.2 104.5 90.0 June 13 ^98.4 104.3 99.5 P95.9 118.9 97.2 78.9 ^104.0 109.9 97.2 104.5 89.9 June 20... P98.1 104.5 98.4 *95.9 118.9 97.3 79.0 ^104.0 109.9 97.2 104.5 90.0 June 27... p98.4 104.6 99.3 ^96.0 118.9 97.3 79.2 *104.0 110.0 97.2 104.5 90.0 July 4 P98.5 104.9 99.3 ^96.1 118.9 97.3 79.5 ^104.0 110.6 97.2 104.5 90.1 July 11... P98.5 105.5 98.7 *»96.0 118.9 96.8 79.5 *>104.0 110.3 97.2 104.5 90.0 July 18.... p98.3 104.9 98.3 P95.9 118.8 96.8 79.6 p103.9 110.2 97.2 104.4 89.6 July 25.... ^98.4 105.4 98.9 *>95.9 118.8 96.8 79.5 p103.9 110.1 96.4 104.4 89.6 1941 1942 1941 1942 Subgroups Subgroups June Mar. Apr. May June June Mar. Apr. May June Farm Products: Metals and Metal Products: Grains 75.! 93.8 91.5 92.2 Agricultural implements 96.9 96.9 96.9 96.9 Livestock and poultry 93.1 113.8 118.3 117.6 116.9 Farm machinery 98.0 98.0 98.0 98.0 Other farm products 76.1 97.9 99.0 99.0 100.5 Iron and steel 97.1 97.1 97.2 97.2 Foods: Motor vehicles 112.7 '112.8 '112.8 P112.8 Dairy products 84.; 94.3 94.1 93.5 92.0 Nonferrous metals . 85.6 85.6 85.6 85.6 Cereal products 79.J 90.6 90.2 89.0 87.2 Plumbing and heating 98.2 98.5 98.5 98.5 Fruits and vegetables 73.1 87.7 97.7 96.7 105.4 Building Materials: Meats 90.! 109.2 112.8 114.8 113.9 Brick and tile 97.1 98.0 98.0 98.1 Other foods 79.. 89.1 90.4 90.6 91.0 Cement 93.6 94.1 94.2 94.2 Hides and Leather Products: Lumber ^ 133.1 131.8 131.5 131.7 Shoes Ill, 124.3 126.7 126.6 126.4 Paint and paint materials 100.8 100.6 100.6 100.3 Hides and skins 112 116.6 123.5 121.4 118.5 Plumbing and heating 98.2 98.5 98.5 98.5 Leather 97, 101.5 101.3 101.3 101.3 Structural steel 107.3 107.3 107.3 107.3 Other leather products 102, 113.6 115.2 115.2 115.2 Other building materials 103.8 103.8 103.8 103.8 Textile Products: Chemicals and Allied Products: Clothing 91, 106.6 107.8 109.6 109.1 Chemicals 96.4 96.4 96.5 96.5 Cotton goods 94, 112.6 113.8 112.9 112.7 Drugs and Pharmaceuticals 126.5 126.7 129.1 129.1 Hosiery and underwear 61, 69.8 70.6 71.9 70.0 Fertilizer materials 79.5 79.2 79.0 78.4 Silk Mixed fertilizers 82.8 82.8 82.8 82.8 Rayon 30.3 30.3 30.3 30.3 Oils and fats 108.8 108.8 108.6 108.5 Woolen and worsted goods 108.7 111.0 111.0 111.0 Housefurnishing Goods: Other textile products 98.2 98.5 98.3 98.2 Furnishings 99.< 107.7 108.0 108.1 108.1 Fuel and Lighting Materials: Furniture 87.( 97.4 97.5 97.5 97.4 Anthracite 85.2 83.7 85.3 85.7 Miscellaneous: Bituminous coal 108.4 108.2 108.5 109.2 Auto tires and tubes 58.J 71.0 72.5 73.0 73.0 Coke.... 122.1 122.1 122.1 122.1 Cattle feed ' 88.! 137.7 140.4 140.4 140.0 Electricity .65.3 64.4 Paper and pulp 98.1 102.9 102.9 102.8 101.6 Gas 77.1 78.1 79.9 Rubber, crude 45.( 46.3 46.3 46.3 46.3 Petroleum products 58.3 58.4 59.1 59.8 Other miscellaneous 87.' 93.3 93.4 93.5 93.3 Back figures—-For monthly and annual indexes of groups/see Annual'Report for 1937 (table 86); for indexesjof subgroups, see Annual Report for 1937 (table 87). " "• P Preliminary. 847 AUGUST 1941 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 1942 Chart book book page June July July July PJuly page 24 1 15 22 Apr. May June MONTHLY FIGURES In billions of dollars WEEKLY FIGURES i In billions of dollars RESERVES AND CURRENCY RESERVES AND CURRENCY Reserve Bank credit, total 2, 7 2.43 2.61 2.76 Rese U rv . e S B . a G n o k v ' c t r . e s d e i c t, u r t i o ti t e a s l , by maturi- 3 2.70 2.87 3.07 3.23 3.20 B U i . ll S s . d G is o c v o ' u t. n t s e e d c urities 7 7 2. . 2 0 8 1 2. . 4 0 6 1 2. . 5 0 8 1 ties, total 5 2.58 2.73 2.91 3.04 3.05 Gold stock 2 22.68 22.71 22.73 Within 1 yr 5 .49 .63 .79 .91 .91 Money in circulation. 2 11.65 11.90 12.21 Within 5 yrs 5 1.13 1.27 1.43 1.55 1.56 Treasury cash 2 2.18 2.19 2.19 After5yrs 5 1.46 1.46 1.48 1.48 1.49 Treasury deposits 2 .20 .32 .14 Gold stock 3 22.74 22.74 22.74 22.74 22.75 Reserve balances 2, 8 12.65 12.51 12.62 Treasury currency 3 3.31 3.31 3.32 3.32 3.32 Required reserves 8 9.70 9.84 9.92 Money in circulation 3, 11 12.23 12.42 12.49 12.50 12.55 Excess reserves 8 2.95 2.67 2.70 Treasury cash holdings 3 2.19 2.20 2.19 2.20 2.22 Money in circulation, total 10 11.77 12.07 12.38 Treasury deposits 3 .14 .49 .55 .95 .30 Coins and bills under $50 10 8.56 8.84 9.08 Nonmember deposits 3 1.36 1.34 1.35 1.30 1.35 Bills of $50 and over 10 3.20 3.24 3.30 Member bank reserves 3 12.52 12.19 12.25 12.04 12.55 Excess reserves—totale 9 2.71 ^2.26 ^2.31 P2.30 P2.26 TREASURY FINANCE New York City 9 .58 .39 .31 .23 .25 U. S. Government debt: Chicago 9 .10 .06 .07 .06 .07 Direct obligations, total 19 64.50 68.11 71.97 Reserve city banks 9 1.20 1.02 1.10 1.14 1.11 Bonds 19 45.36 48.16 48.78 Country banks* 9 .83 P.79 P. 84 P.87 Notes 19 8.31 8.67 9.70 Bills 19 63.46 63.76 65.60 MEMBER BANKS Special issues 19 7.36 7.52 7.88 Total, 101 cities: Guaranteed obligations 19 5.67 5.67 4.55 Loans and investments 16 31.59 32.38 32.37 33.34 33.40 Balances due to domestic banks.... 16 9.10 9.09 28.63 8.55 8.39 Per cent per annum Demand deposits adjusted 16 25.95 25.50 25.65 25.82 26.31 MONEY RATES, ETC. Time deposits.....,.., 16 5.08 5.10 5.09 5.08 5.09 F. R. Bank discount New York City: rate, N. Y 23 1.00 1.00 1.00 Commercial loans 17 2.59 2.58 2.58 2.59 2.57 Treasury bills (new issues) 23 .299 .364 .363 Brokers' loans , 17 .34 .41 .37 .48 .50 Treasury notes (taxable) 23 .98 1.03 1.15 U. S. Gov't. obligations 17 7.56 7.88 7.88 8.16 8.15 U. S. Gov't. bonds3 29 1.98 1.97 1.97 100 cities outside New York: Commercial paper 25 .63 .63 .69 Commercial loans 17 3.92 3.89 3.88 3.90 3.86 Corporate Aaa bonds 25, 29 2.83 2.85 2.85 U. S. Gov't. obligations 17 10.36 10.44 10.95 11.07 Corporate Baa bonds 29 4.26 4.27 4.33 In unit indicated Per cent per annum Stock prices MONEY RATES, ETC. (1935-39=100): Treasury bills (new issues) 21 .360 365 365 .368 .369 Total 31 63.3 63.2 66.1 Treasury notes (taxable) 21 1.17 117 1.19 1.20 1.21 Industrial 31 64.8 64.7 68.2 U. S. Gov't. bonds3 21, 29 2.01 200 2.00 2.00 2.00 Railroad 31 61.1 60.3 59.0 Corporate Aaa bonds 29 2.84 2.83 2.83 2.83 2.83 Public utility 31 56.5 57.2 58.8 Corporate Baa bonds 29 4.34 433 4.31 4.30 4.30 Volume of trading (mill, shares)... 31 .34 .32 .32 Brokers' balances (mill, dollars): Credit extended customers.... 33 515 502 496 In unit indicated Money borrowed 33 300 300 309 Customers' free credit balances 33 247 238 240 Stock prices (1935-39 = 100): BUSINESS CONDITIONS Total ..,.„.... 31 65.3 65.5 68.9 69.7 69.4 Wholesale prices: Industrial 31 67.5 67.6 71.4 72.4 71.8 All commodities (1926 = 100): Railroad 31 58.4 59.8 62.9 63.5 64.2 Total7 35, 65 ^98.7 P98.6 Public utility 31 57.4 57.1 59.0 58.7 59.0 Farm products 35 104.5 104.4 104.4 Volume of trading (mill, shares) 31 .26 .51 .31 .30 Other4 35 P95.6 *>95.6 Industrial commodities BUSINESS CONDITIONS (Aug. 1939 = 100): Who A le l s l a c l T e o o m p ta m r l i c o e d s i : ties (1926=100): 35 P98.4 P98.5 p98.5 P98.3 P98.4 T F R i o a n w t i a s l h a e n d d semifinished ;.... 3 3 3 7 7 7 131.1 131.1 P1 1 1 2 1 3 7 1 0 . . . 1 3 4 Farm products 35 104.6 104.9 105.5 104.9 105.4 Cost of living (1935-39 = 100): Other* 35 2>96.0 P95.9 P95.9 All items , 39 115.1 116.0 116.4 Basic commodities Rent 39 r109.2 '109.9 108.5 (Aug. 1939 = 100), total 36 167.2 167.1 168.0 167.7 166.3 Clothing 39 126.5 126.2 125.3 12 foodstuffs . 36 184.8 184.8 186.0 185.9 183.9 Food 39 119.6 121.6 123.2 16 industrial materials 36 154.9 154.9 155.4 155.0 154.1 Ste (p el e r p c ro en d t u c o t f io c n apacity) 44 98-0 96.5 97.7 99.1 98.7 'Estimated. pPreliminary. rRevised. Automobile production (thous. cars)5.. 44 1 Figures for other than Wednesday dates are shown under the Freig T h o t t - a c l a r loadings (thous. cars): 45 853.4 753.9 855.1 857.1 855.5 W 2 e d B n e e g s i d n a n y i ng in c w lu it d h e d Ju l i y n 8 t h fi e g u w re e s e k e l x y c l p u e d r e i o re d c . iprocal bank balances. Elec M tri i c s ce p l o la w n e e r o u p s r oduction (mill. kw. 45 385.7 356.7 384.2 385.9 390.3 4 3 O Pa th rt e i r a l t l h y an ta x fa - r e m xe m pr p o t d u is c s t u s e a s n o d n f l o y o . ds. hrs.) 46 3.457 3.424 3.429 3.565 3.626 6 Data no longer published. Department store sales (1935-39 = 100) 46 100 84 102 .93 .92 6 Including certificates of indebtedness. F.H.A. home mortgages, new constr. 7 Estimate for July is shown on page 847. (thous.) 47 3.20 2.52 3.05 2.92 3.34 • Copies of this Chart Book may be obtained at a price of 50 cents each. 848 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CURRENT STATISTICS FOR FEDERAL RESERVE CHART BOOK—Continued Chart 1942 Chart 1942 book book page Apr. I * May June page Apr. May June MONTHLY FIGURES (cont.) MONTHLY FIGURES (cont.) In unit indicated 1926 = 100 BUSINESS CONDITIONS (cont.) INTERNATIONAL FINANCE Industrial production :i 2 3 Wholesale prices: Total (1935-39 = 100) 41, 42 174 P177 Canada 65 95.0 95.2 Durable manufactures 41 90 P92 Germany 65 *85.0 Iron and steel 42 22 22 m Japan 65 Machinery, etc 42 51 53 ?55 Sweden 65 p147.8 *148.6 Other durable 42 16 15 ?16 Switzerland 65 1443 Nondurable manufactures 41 65 65 *>65 United Kingdom 65 128.8 129.7 P129.0 Textiles and leather 42 21 20 *>20 Paper and printing 42 12 12 P12 F O o th o e d r s , n l o iq n u d o u r r s a , b a le n d tobacco ... 4 4 2 2 1 1 8 4 1 1 8 4 * P 1 1 8 4 In f or c e e i n g t n s pe c r u r u re n n it c y of Minerals... 41, 42 20 20 *>20 Foreign exchange rates: New orders, shipments, and Argentina (peso) 67 29.77 29.77 29.77 inventories: Canada (dollar) 67 87.17 88.56 89.96 New orders, total (Jan. 1939 =100). 43 292 270 United Kingdom (pound) 67 403.50 403.50 403.50 Durable 43 449 432 Nondurable 43 192 167 Shipments, total (1939 = 100) 43 200 203 1942 Durable 43 239 254 Nondurable 43 168 164 Inventories, total (1939 = 100) .... 43 167 170 Feb. Mar. Apr. Durable 43 187 190 Nondurable 43 150 153 In billions of dollars Freight-car loadings:i 2 Total (1935-39 = 100)3 57 143 143 141 Increase in U. S. gold stock :5 Coal 57 34.1 34.8 34.1 Total 63 15.68 15.67 15.67 Miscellaneous 57 77.1 77.7 78.9 Net capital inflow: Allother 57 32.0 30.2 27.7 Total 62, 63 5.48 5.49 5.72 Inflow of foreign capital 62 3.37 3.37 3.60 1923-25 = 100 Return of domestic capital 62 2.01 2.01 2.02 Merchandise export surplus 63 6.84 7.63 8.86 Other factors 63 3.36 2.54 1.09 Factory employment 51, 53 136.1 137.1 P138.4 Short-term foreign liabilities and Factory payrolls 5\, 53 186.7 191.8 2>194.5 assets of banks: Average hourly earnings Due to foreigners 64 3.30 3.32 3.55 (cents per hour) 51 81.9 83.1 Due from foreigners 64 .35 .34 .33 Average hours worked Net due to foreigners «. 64 2.95 2.99 3.22 (hours per week) 51 42.4 42.6 D D e e p p a a r r t t m m e e n n t t s s t t o o r r e e s s t a o l c e k s1 s * 5 5 9 9 1 1 1 1 7 7 r1 1 2 0 6 8 104 1941 1942 Oct.- Jan.- Apr.- In millions of dollars Dec. Mar. June Residential contracts awarded:1 Total 47 143 137 181 QUARTERLY FIGURES In billions of dollars Public 47 51 76 141 Private, total 47 92 61 40 Cash income and outgo of U. S. Treas.: 1- and 2-family dwellings 47 85 50 35 Cash income 18 2.86 5.55 4.42 Other 47 7 11 5 Cash outgo 18 7.19 9.04 13.18 Construction contracts awarded 'A Excess of cash outgo 18 4.33 3.49 8.76 Total 49 524 650 Domestic corporation security issues: Residential 49 151 140 2*162 Total 32 r.47 .36 .36 Other 49 373 510 New 32 r.27 .22 .28 Nonagricultural employment! Refunding . 32 r.20 .14 .09 (mill, persons): Total 50 r40.98 41.14 HI.17 Manufacturing and mining 50 r13.78 13.91 2*14.07 Per cent per annum Trade 50 6.69 6.70 2*6.59 Government... ^ 50 4.75 4.79 2*4.87 Bank rates on customers' loans: Transportation^and utilities 50 3.36 3.39 2*3.40 Total, 19 cities 25 2.41 2.48 2.62 Construction. 50 2.00 1.96 2*1.85 New York City 27 1.88 1.85 2.07 Income payments:1 7 other Northern and Eastern Total. 54 r9,041 9,108 2*9,259 cities 27 2.45 2.48 2.56 Salaries and wages 54 6,128 6,242 2>6,406 11 Southern and Western cities 27 2.99 3.20 3.34 Other 54 r2,9l3 2,866 2*2,853 Cash farm income: p Preliminary. r Revised. Total 55 982 1,030 2*1,059 1 Adjusted for seasonal variation. Crops 55 262 259 2 In points in total index. Livestock and products 55 720 734 3 Estimate for July is shown on page 835. Gov't. payments 55 37 4 Three-month moving average, adjusted for seasonal variation. Exports and imports: 5 Cumulated from Jan. 31, 1934. Exports 61 682 Imports 61 234 Excess of exports 61 448 849 AUGUST 1941 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CURRENT STATISTICS FOR FEDERAL RESERVE CHART BOOK-Continued [In billions of dollars] 1939 1940 1941 1942 Chart book page June Oct. Dec. Mar. June Dec. Apr. June Sept. Dec. Apr. 30 2 30 26 29 31 4 30 24 31 4 CALL REPORT FIGURES ALL BANKS IN THE U. S. Total deposits and currency 12 60.95 62.87 64.10 64.88 66.96 70.75 72.43 74.15 76.09 78.25 «80.00 Demand deposits adjusted.... 12 27.35 29.09 29.79 30.54 31.96 34.94 36.10 37.32 38.68 39.00 e40.00 Time deposits 12 26.80 26.81 27.06 27.28 27.47 27.74 27.90 27.88 27.90 27.73 «27.2O Currency outside banks 12 6.01 6.19 6.40 6.23 6.70 7.32 7.78 8.20 8.56 9.62 e10.40 Loans and investments total 13 49.62 49.95 50.89 51.14 51.34 54.19 56.15 57.95 59.30 61.10 e62.00 Loans 13 21.32 21.63 22.17 22.19 22.34 23.74 24.32 25.31 26.19 26.62 e26.30 Investments : 13 28.30 28.32 28.72 28.95 29.00 30.45 31.83 32.63 33.11 34.48 e35.70 MEMBER BANKS Investments total <*) 19.46 19.61 19.98 20.22 20.48 21.81 23.10 23.93 24.40 25.50 26.45 U. S. Government obligations: Direct 14 10.95 10.89 11.18 11.31 11.60 12.34 13.50 14.24 14.09 15.71 16.98 Guaranteed . . 14 2.83 2.92 3.14 3.11 3.12 3.49 3.49 3.84 4.24 3.83 3.47 State and local government obligations 14 2.55 2.76 2.69 2.90 2.89 3.01 3.21 2.98 3.16 3.09 3.17 O Fo th re e i r g n d o s m ec e u st r i i c t ie s s ecurities.- A 14 t 2. . 9 1 4 9 (2) 2. . 7 1 7 9 (2) 2. . 7 1 0 7 2. . 8 1 0 7 (2) 2. . 7 1 2 5 8 2. . 7 1 3 4 ( ( 2 2 ) ) Loans, total . . . ... 13.14 13.47 13.96 13.94 13.97 15.32 15 88 16.73 18.02 17.83 C St o r m ee m t e lo rc a i n a s l l ( o b a r n o s k e ( r i s n ' c l l o . a o n p s e ) n-market paper) 1 1 5 5 5. . 9 5 9 6 6.5 6 7 1 6. . 7 3 2 2 7.5 4 2 7 8.5 4 5 2 17 i855 9. . 6 4 4 1 ( ( 2 2 ) ) Other security loans' 15 .91 .88 .80 .83 .79 .78 (2) Real estate loans 2.83 2.96 8 3.07 3.23 3.37 3.49 All other loans 2.85 (2) 2.94 3.06 3.27 (2) 3.61 3.69 (2) SEMI-ANNUAL FIGURES OWNERSHIP OF U. S. GOVERNMENT OBLIGATIONS Total direct and guaranteed obligations outstanding C1) 45.34 47.07 47.87 50.36 54.75 63.77 Amount held by: U. S. Government agencies and trust funds: Public issues 20 2.14 2.32 2.29 2.25 2.36 2 55 Special issues 20 3.77 4.23 4.77 5.37 6.12 6 98 Federal Reserve Banks 20 2.55 2.48 2.47 2.18 2 18 2 25 Commercial banks .. . 20 15.70 16.30 16.55 17.76 20.10 21.79 Mutual savings banks 20 3.04 3.10 3.11 3.22 3.43 3.70 Insurance companies 20 5.90 6.30 6.50 6.80 6.90 7.90 Other investors 20 12.20 12.30 12.20 12.80 13.70 18.60 e Estimated. 1 Series not shown in Chart Book. 2 Figures available for June and December dates only. 3 Includes only loans made for the purpose of purchasing or carrying securities. 850 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

> 3 EARNINGS AND EXPENSES OF FEDERAL RESERVE BANKS DURING THE SIX-MONTH PERIOD ENDED JUNE 30, 1942 Total Boston New York d P e h lp il h a i - a Cleveland Richmond Atlanta Chicago St. Louis M ap in o n li e s - K C an it s y as Dallas Fra S n a c n isco Current Earnings Discounted bills $28,407 $2,250 $15,666 $4,672 $951 $145 $201 $54 $582 . $759 $1,960 $957 $210 Purchased bills . U. S. Government securities . 21,608,463 1,605,036 91? S66 1,709,693 7 i67,201 1,299,506 926,375 2,652,974 1,025,807 652,991 952,417 840,953 1,862 944 Industrial advances 215 098 24,360 ?4 SS1 92,069 5,644 20,216 17,702 8, 712 12,366 1,980 4,740 2 737 Commitments to make industrial advances 58,897 1,289 1 1S8 4,329 7,950 6,290 7,70S 6,211 48 1,408 7 22 231 All other 323,777 9,441 58,832 6,451 39,821 10,731 5,206 80,628 9,211 3,876 82,556 5,508 11,516 Total current earnings 22,234,642 1,642,376 6,012,753 1,813,176 2,217,946 1,338,548 955,774 2,749,382 1,042,523 670,040 1,040,321 852,165 1,899,638 Current Expenses Operating expenses: Salaries: Officers 1,145,740 56,119 251,338 61,933 94,750 76,902 72,233 124,196 85,879 62,494 73,946 69,118 116,832 Employees 13,082,591 775,097 3,273,020 892,632 1,176,208 753,020 601,056 1,795,012 682,254 447,300 696,542 629,987 1,360,463 Retirement System contributions for current service 708,237 37,702 176,574 45,322 58,842 40,034 37,170 97,073 40,157 26,192 41,942 35,791 71,438 Legal fees 13,260 2,819 -480 1,275 2,500 32 16 443 4,668 519 1,468 Directors' fees and expenses 64,466 4,696 5,715 4,430 4,478 4,470 7,216 3,083 '"6,333 4,952 7,250 5,076 6,767 Federal Advisory Council fees and expenses 10,474 750 780 774 701 344 767 1,201 850 885 897 675 1,850 Traveling expenses (other than directors and members of Federal Advisory Council) 211,311 7,276 32,601 13,252 20,248 16,320 12,497 30,189 14,888 11,066 9,485 10,727 r 32,762 Postage and expressage 3,266,719 336,081 557,405 251,861 349,507 232,524 173,909 471,347 139,226 103,292 176,471 137,872 337,224 Telephone and telegraph 289,971 12,609 50,933 18,459 27,110 17,783 24,870 22,123 20,779 13,583 23,197 19,776 38,749 Printing, stationery, and supplies 1,178,314 116,428 272,326 78,487 98,457 64,650 55,950 161,958 61,471 35,209 50,213 63,500 119,665 Insurance on currency and security shipments 140,713 22,819 24,170 10,469 12,293 13,360 10,017 15,375 4,029 3,528 4,907 4,816 14,930 O Ta th x e e r s i o n n s u b r a a n n k c e p rem # ises - 7 1 6 0 5 9 , , 5 5 4 1 8 4 7 5 5 , , 8 0 0 0 6 0 2 2 4 4 0 , , 9 9 6 9 4 4 45 8 , , 7 20 18 2 6 8 8 , , 4 2 6 0 1 5 36 6 , ,3 9 4 90 8 3 8 1 , ,2 7 2 9 8 0 95 8, , 0 5 3 6 1 7 26 7 , , 2 0 6 5 3 8 3 5 3 , , 6 6 8 6 1 0 46 8 , , 7 6 1 0 0 4 1 7 6 , , 6 8 9 63 3 48 9 , , 3 8 5 7 0 6 Depreciation on bank building 524,807 27,916 109,980 63,266 57,238 47,158 21,274 38,544 23,010 14,423 37,417 45,365 39,216 Light, heat, power, and water 227,702 15,916 46,701 16,061 25,792 17,685 15,720 24,945 13,858 10,701 10,212 14,717 15,394 Repairs and alterations to bank building 128,487 5,806 23,827 8,513 15,415 6,491 9,731 14,754 6,483 11,517 8,530 3,988 13,432 Rent • 137,721 139 39,910 420 34,567 1,428 25 2,039 1,500 120 57,573 Furniture and equipment 463,301 18,362 66,161 49,363 57,345 56,290 16,720 47,690 44,420 11,482 22,894 24,231 48,343 All other 505,876 55,687 78,988 49,099 35,888 21,808 33,630 66,370 27,472 16,181 29,126 30,518 61,109 Total operating expenses 22,974,752 1,577,028 5,275,907 1,619,536 2,148,005 1,413,637 1,132,819 3,019,940 1,205,930 816,814 1,248,862 1,120,833 2,395,441 7,408,667 398,135 1,628,031 438,362 637,559 352,581 429,203 993,141 358,191 319,359 414,293 436,798 1,003,014 Less reimbursements for certain fiscal agency and other expenses 15,566,085 1,178,893 3,647,876 1,181,174 1,510,446 1,061,056 703,616 2,026,799 847,739 497,455 834,569 684,035 1,392,427 Net operating expenses 940,211 66,890 332,718 90,684 86,380 40,864 32,594 115,105 28,546 20,609 26,928 27,641 71,252 Assessment for expenses of Board of Governors Federal Reserve Currency: 1,480,819 125,792 267,106 88,607 128,891 128,183 102,937 262,447 80,592 22,969 44,770 27,245 201,280 Original cost 110,369 7,119 18,862 8,303 10,695 11,800 10,146 14,411 6,340 2,313 5,355 5,352 9,673 Cost of redemption Total current expenses 18,097,484 1,378,694 4,266,562 1,368,768 1,736,412 1,241,903 849,293 2,418,762 963,217 543,346 911,622 744,273 1,674,632 Current net earnings 4,137,158 263,682 1,746,191 444,408 481,534 96,645 106,481 330,620 79,306 126,694 128,699 107,892 225,006 OO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTERNATIONAL FINANCIAL STATISTICS PAGE Gold reserves of central banks and governments 853 Gold production 854 Gold movements 854 Net capital movements to United States since January 2,1935... 855 Central banks 856-859 Money rates in foreign countries 860 Commercial banks 861 Foreign exchange rates 862. Price movements: Wholesale prices 863 Retail food prices and cost of living 864 Security prices 864 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 figuresm ay in most cases be obtained from earlier BULLETINS and from Annual Reports of the Board of Governors for 1937 and earlier years. 852. 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 it t e e d s g t A e in n r- a - g B i e u l m - Brazil B In ri d ti i s a h g B a u r l i - a Canada Chile lom Co b - ia C v z s a e l k c o h - ia o- D m e a n rk - Egypt France m G a e n r- y Greece 1936—Dec. 11,258 501 632 25 275 20 188 29 19 91 54 55 2,995 27 26 1937—Dec. 12,760 469 597 32 274 24 184 30 16 92 53 55 2,564 28 24 1938—Dec. 14,512 431 581 32 274 24 192 30 24 83 53 55 2,430 29 27 1939—Dec. 17,644 466 609 40 274 24 214 30 21 56 53 55 2,709 129 28 1940—Dec. 21,995 2 353 3 734 51 274 24 47 30 17 58 52 52 2,000 28 1941—July. 22,675 353 734 63 274 24 7 30 18 61 45 52 2,000 128 Aug.. 22,719 352 734 65 274 24 11 30 17 61 45 52 2,000 Sept. 22, 761 352 734 66 274 24 6 30 17 61 44 52 2,000 Oct.. 22,800 354 734 68 274 24 6 30 17 61 44 52 2,000 Nov. 22,785 354 734 69 274 24 8 30 17 61 44 52 2,000 Dec. 22,737 354 734 70 274 24 5 30 16 61 44 52 2,000 1942—Jan.. 22,747 354 734 71 274 24 7 30 18 61 44 52 2,000 Feb.. 22,705 354 734 72 274 24 5 30 17 61 44 52 2,000 Mar. 22,687 354 734 74 274 5 30 15 61 44 52 2,000 Apr.. 22,691 355 74 274 6 30 16 61 2,000 May. 22,714 76 7 30 16 June 22,737 5 16 End of month H ga u r n y - .P I e r r a s n ia) Italy Japan Java Mexico N la e n th d e s r- Ze N al e a w nd N w o a r y - Peru Poland Po g r a t l u- Ru ni m a a- A S f o r u i t c h a Spain 1936—Dec,.. 25 25 208 463 60 46 491 23 20 75 68 114 203 ^ 718 1 1 9 9 3 3 7 8 — — D D e e c c . . . . . . 2 3 5 7 2 2 5 6 2 1 1 9 0 3 2 1 6 6 1 4 8 7 0 9 2 2 4 9 9 9 9 3 8 3 2 2 3 3 9 8 4 2 2 2 1 0 8 8 5 3 6 6 9 9 1 1 3 2 3 0 2 1 2 8 0 9 5 525 1939—Dec... 24 26 144 164 90 32 692 23 , 94 20 69 152 249 1940—Dec... 24 26 U37 164 140 47 617 23 20 59 158 367 1941—July.. 24 26 6 164 173 60 573 23 20 59 178 431 Aug... 24 26 193 59 573 23 20 59 178 436 Sept.. 24 26 201 57 573 23 21 59 179 450 Oct... 24 26 200 54 573 23 21 59 180 422 Nov.. 24 26 228 52 574 23 21 59 181 400 Dec... 24 26 235 47 575 23 21 59 182 366 1942—Jan... 24 26 216 42 575 23 21 59 182 363 Feb... 24 26 28 575 23 21 59 380 Mar.. 24 26 30 575 23 21 397 Apr... 131 23 21 429 May.. 30 23 21 June.. 32 Government gold reserves1 not included End of month S d w e e n - Sw la i n tz d er- T k u e r y - U K d n o in i m t g e - d g U u r a u y - V zu e e n l e a - Y sl u av g i o a - B.I.S. c O t o r t i u h e n e s - ' r End of month in U S t n p a i r t t e e e v s d iou U K d s n o in i m t f g e ig - d ure F s rance2 g B iu el m - 1936—Dec. 240 657 26 2,584 77 59 48 11 183 1936—Dec 93 1 1 1 1 9 9 9 9 3 3 4 3 7 8 0 9 — — — — D D D D e e e e c c c c . . . . 3 2 3 1 2 4 0 6 1 4 8 0 6 5 7 5 5 0 0 4 0 1 2 9 2 2 2 9 9 9 2 2 , , 6 6 8 8 9 1 9 0 1 6 6 9 7 9 8 0 4 9 5 5 5 2 2 2 2 9 5 5 8 5 1 7 2 9 1 1 5 7 4 2 1 1 1 1 8 5 4 4 5 3 2 5 1 1 9 9 3 3 7 8 — — D J J M u u e n n c a e e r . . . . . . . . . . ""4 16 4 9 " 4 1 3 1 , 4 ,3 9 8 9 3 9 5 4 ""6 1 8 2 1 1 5 1 1 9 9 4 4 1 2 — — M J M A F N D A O S J J u e e a u p u o e c a a n b n p l c t r g v y r y e t :... 3 2 2 2 2 1 1 1 1 1 2 0 7 5 2 8 9 9 2 9 9 8 8 7 1 5 0 1 1 3 6 2 9 5 5 7 7 5 6 7 7 5 6 7 7 9 9 3 4 2 9 8 0 6 0 6 6 5 5 3 3 5 6 4 2 5 2 0 4 1 1 9 9 9 9 9 0 0 2 5 3 2 2 0 0 1 1 1 1 1 1 9 9 9 9 0 0 0 0 0 0 7 7 7 7 0 6 8 8 1 2 4 4 4 4 4 5 4 4 5 5 5 5 0 1 1 1 9 6 1 1 2 2 6 6. 183 1 1 1 1 1 1 1 9 9 9 3 5 4 0 0 2 2 1 1 1 1 1 1 1 1 1 1 1 1 3 3 3 3 3 3 3 4 3 3 4 3 8 8 8 8 9 9 9 4 7 7 4 8 1 1 1 9 9 9 4 4 3 1 0 9 — — — D M D S J D S S J J M M M u u u e e e e e e a c a a n a n p p p n c y . r r c r e t e t t e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . - 1 1 1 1 1 8 4 8 8 4 0 8 8 5 6 5 2 6 8 9 8 5 5 0 5 6 4 4 4 1 4 6 , 7 1 2 7 3 9 5 5 2 2 9 1 4 3 5 7 5 3 7 9 1 4 1 1 1 1 4 7 7 7 7 Dec 25 1 Figures relate to last official report dates for the respective countries, as follows: Germany- 1942—Mar 12 June 15, 1939; Greece—Mar. 31, 1941; Italy—late in*Mar. 1940; Norway—Mar. 30, 1940; Poland- July 2 3 B 1 e , g 1 i 9 n 3 n 9 i ; n Y g u A g p o r s . l a 1 v 9 i 4 a 0 — , r F e e p b o . r 2 ts 8 , o 1 n 9 4 c 1 e . rtain Argentine gold reserves no longer available. 1 Reported at infrequent intervals or on de- 3 Change from previous December due largely to inclusion of gold formerly not reported. layed basis: U. S.—Exchange Stabilization Fund 4 On May 1,1940, gold belonging to Bank of Canada transferred to Foreign Exchange Con- (Special A/c No. 1); U. K.—Exchange Equalitrol Board. Gold reported since that time is gold held by Minister of Finance. zation Account; France—Exchange Stabilization 5 Figures for Dec. 1936 and Dec. 1937 are those officially reported on Aug. 1,1936, and Apr. 30 Fund and Rentes Fund; Belgium—Treasury. 1938, respectively. 2 For complete monthly series from Oct. 1938- 6 Figure for Feb. 1941; beginning Mar. 29, 1941, gold reserves no longer reported separately. May 1939, see BULLETIN for February 1941, ^ These countries are: Albania, Algeria, Australia, Austria through Mar. 7, 1938, Belgian p. 170. Congo, Bolivia, China, Danzig through Aug. 31, 1939, Ecuador, El Salvador, Estonia, Finland, 3 Figure for end of Mar. 1937, first date reported. Guatemala, Iceland, Latvia, Lithuania, Morocco, and Thailand (Siam). Figures for certain of these countries have been carried forward from last previous official report. 4 Figure for end of September. 8 Gold holdings of Bank of England reduced to nominal amount by gold transfers to British 5 Figure for September 1. Exch 9 a _ n B g e e g i E n q ni u n a g l i D za e ti c o n 1 9 A 40 c , c f o i u g n u t r e d s u r r e i f n e g r 1 t 9 o 3 g 9 o . ld reserves of new Central Bank only. tra N n O sf T e E rs .— in F o 1 r 939 d - e 4 t 0 a il b s e tw r e e e g n a the w B ri• s t^ , i p s e h c E ia E. l . E. g A ol . d NOTE.—For description of table and back figures see BULLETIN for September 1940, pp. and the Bank of England, and between the French 925-934 and pp. 1000-1007; details regarding special internal gold transfers affecting the reported E. S. F. and the Bank of France, see BULLETIN figures through April 1940 appear on p. 926 in that issue. for September 1940, p. 926. 853 AUGUST 194Z 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 Year or month production Africa North and South America Other U o . u S t . s S i . d R e .1 Total A So fr u ic th a d R e h s o ia - A W fri e c s a t 2 B C e o l n g g ia o n 3 U St n a i t t e e s d * Canada^ Mexico Co b l i o a m- Chile Ni g c u a a r « a- Au l s ia tra- B In ri d ti i s a h 7 $1 = 154\ grains o! gold infine; i.e.,an ounce tf fine god = $35 1934 823,003 708,453 366,795 24,264 12,153 6,549 108,191 104,023 23,135 12,045 8 350 1,166 30,559 11,223 1935 882,533 752,847 377,090 25,477 13,625 7,159 126,325 114,971 23,858 11,515 9,251 868 31,240 11,468 1936 971,514 833,895 396,768 28,053 16,295 7,386 152,509 131,181 26,465 13,632 9,018 807 40,118 11,663 1937 1,041,576 893,384 410,710 28,296 20,784 8,018 168,159 143,367 29,591 15,478 9,544 848 46,982 11,607 1938 1,136,360 958,770 425,649 28,532 24,670 8,470 178,143 165,379 32,306 18,225 10,290 1,557 54,264 11,284 1939 1,208,705 1,020,297 448,753 28,009 28,564 8,759 196,391 178,303 29,426 19,951 11,376 3,506 56,182 11,078 1940 1,279,455 1,094,264 491,628 29,155 32,163 »8,862 210,109 185,890 30,878 22,117 11,999 5,429 55,878 10,157 1941 « 1,287,720 PI,088,150 504,268 27,765 32,414 208,443 186,568 27,969 22,961 9,259 7,525 P51,039 9,940 1941—June...... 105,875 89,581 41,186 2,353 2,800 16,395 15,890 2,845 1,777 1 023 533 3,939 840 July 109,970 93,597 43,093 2,319 2,800 18,463 15,983 2,485 2,072 628 693 4,185 875 Aug 108,535 92,443 42,458 2,329 2,800 17,413 16,353 2,579 1,739 860 661 4,376 875 Sept. 109,935 93,863 42,135 2,312 2,765 20,807 15,578 1,984 1,984 504 717 4,271 805 Oct 111,265 94,890 43,061 2,319 2,590 18,781 16,141 2,300 2,098 703 699 5,357 840 Nov 107,940 91,596 41,807 2,240 2,590 19,740 15,499 1,688 1,726 701 718 4,047 840 Dec 105,035 ^88,823 42,436 2,302 2,590 16,700 14,746 1,832 1,749 622 770 P4.200 875 1942—Jan r104,510 P88.599 42,556 ?2,283 2,695 14,982 14,198 3,790 2,075 558 772 ^3,850 840 Feb.. 90,440 P75.654 39,651 P2.187 2,625 10,034 13,147 563 1,573 537 647 *>3,430 1,260 .Mar P100.590 ^85,074 42,618 *>2,310 2,625 10,959 15,372 3,457 pl,925 596 663 P3,675 875 Apr. 2*83,419 41,491 •^2,310 "2,555 11,058 14,728 •^3 457 pl 855 ^596 644 p3 815 910 May P84.419 42,539 ^2,310 ^2,555 10,807 14,881 '3,457 ^1,855 ^596 694 •^3,815 /910 Gold production in U. S. S. R.: No regular Government statistics on gold production in U. S. S. R. are available, but data of percentage changes irregularly given out by officials of the gold mining industry, together with certain direct figures for past years, afford a basis for estimating annual production as follows: 1934, 135 million dollars; 1935, 158 million; 1936, 187 million; 1937, 185 million; 1938, 180 million. p Preliminary. r Revised. * Figure carried forward. 1 Annual figures through 1940 are estimates of U. S. Mint. Monthly figures are based on estimates of American Bureau of Metal Statistics given in thousands of fine ounces. 2 Beginning April 1941, figures are those reported by American Bureau of Metal Statistics. 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 1941 represent estimates of American Bureau of Metal Statistics revised by deducting from each monthly figure $73,585 so that aggregate for 1941 is equal to preliminary 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 Gold exports, reported by the Banco Nacional de Nicaragua, which states that they represent approximately 90 per cent of total production. 7 Beginning May 1940, figures are those reported by American Bureau of Metal Statistics. NOTE.—For explanation of table and sources see BULLETIN for February 1939, p. 151; June 1938, p. 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 1941, pp. 103-104, 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 o p e t o a t r l ts U K d n o i i n m t g ed - France g B iu e m l- N l e a t n h d e s r- S d w en e- e S r w la i n tz d - Canada Mexico Co b l i o a m- I P s p h la i i n l n i e d p s - t A ra u l s i - a A S f o r u ic t a h 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: 19341 1,131,994 499,870 260,223 8,902 94,348 12,402 86,829 30,270 16,944 12,038 1,029 12 4 76,820 32,304 1935 1,739,019 315,727 934,243 3 227,185 968 95,171 13,667 10,899 15,335 3,498 65 75,268 46,989 1936 1,116,584 174,093 573,671 3,351 71,006 2 7,511 72,648 39,966 11,911 21,513 23,280 8 77,892 39,735 1937 1,585,503 891,531-13,710 90,859 6,461 6 54,452 111,480 38,482 18,397 25,427 34,713 181 246,464 50,762 29,998 1938 1,973,5691,208,728 81,135 15,488 163,049 60,146 1,363 76,315 36,472 10,557 27,880 39,162 401 168,740 16,159 267,975 1939 3,574,1511,826,403 3,798 165,122 341,618 28,715 86,987 612,949 33,610 23,239 35,636 74,250 22,862 165,605 50,956 3102,404 1940 4,744,472 633,083 241,778 977 63,260 161,489 90,3202,622,330 29,880 23,999 38,627 103,777 184,756 111,739 49,989 4388,468 1940 $ 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 96 515,093 Mar 118,567 817 95,619 866 2,232 3,984 6,262 2,788 3,046 2,951 171,992 21 20,216 1,147 2,934 3,587 4,720 132,261 313 6,793 Gross imports from:6 May 34,830 2 16,309 969 2,794 3,384 4,194 3,594 3,589 June 30,712 474 1 17,521 800 7 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 '"i,995 5 9,011 Sept 65,702 250 42,563 495 2,488 3,107 2,064 3,694 5ll,045 Oct 40,440 55 16,074 1,020 2,107 3,143 6,151 200 2,327 5 9,366 Nov .7 50,374 121 24,921 6,336 2,110 1,832 5,980 40 59,041 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. 4 Includes $75,087,000 from Portugal, $59,072,000 from Argentina, $43,935,000 Irom 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 imports from U. S. S. R. as follows: Feb.—$11,236,000, Aug.-$3,407,000, Sept.—$5,652,000, Oct.—$5,550,000, Nov.—$5,615,000. 6 Beginning May 1941, the Department of Commerce suspended publication of export statistics by country of destination. 7 Beginning December 4,1941, the Department of Commerce suspended publication of gold import and export statistics. NOTE.—For gross import and export figures and for additional countries see table on p. 816. 854 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NET CAPITAL MOVEMENT TO UNITED STATES SINCE JANUARY 2, 1935 [In millions of dollars] Increas f e u n in ds f o in re i U gn . S b . anking D in e c U re . a S se . se F c o u r r e i i t g ie n s: s D e o c m ur e it s i t e ic s: Inflow in From Jan. 2, 1935, through- Total banking Return Inflow of brokerage Central funds of U. S. foreign balances Total bank funds Other abroad funds funds in N. Y.1 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 Sept. (Oct. 2) 5,748.1 3,092.8 1,112.3 1,980.5 773.6 793.1 987.0 101.6 Dec. (Jan. 1,1941).. 5,727.6 3,159.0 1,200.8 ,958.3 775.1 803.8 888.7 100.9 1941—Mar. (Apr. 2) 5,526.5 3,148.8 1,307.7 ,841.0 767.4 812.7 701.8 95.9 1941—June 4 5,608.9 3,235.2 1,418.6 ,816.6 803.6 836.3 637.1 96.8 June 11 5,602.7 3,226.9 1,401.3 ,825.6 811.6 832.6 634.4 97.2 June 18 5,627.8 3,249.3 1,407.9 ,841.4 815.7 831.6 634.4 96.7 June 25 5,620.7 3,240.9 1,410.3 ,830.7 817.8 833.1 632.4 96.5 July 2 5,575.4 3,193.3 1,375.1 ,818.2 818.6 834.1 631.2 98.2 July 9 5,584.6 3,194.6 1,366.2 ,828.4 826.2 835.5 630.0 98.3 July 16 5,561.8 3,171.5 1,362.8 ,808.7 826.2 837.8 628.2 98.2 July 23 5,534.0 3,153.6 1,342.7 ,810.9 819.4 838.3 624.8 97.9, July 30 5,506.9 3,141.4 1,320.3 ,821.1 803.5 838.9 623.6 99.5 Aug. 6 5,556.1 3,185.5 1,378.9 ,806.6 807.3 839.7 624.8 98.8 Aug. 13 5,535.8 3,166.9 1,369.7 ,797.3 805.7 841.0 623.1 99.1 Aug. 20 5,521.2 3,156.2 1,374.2 ,782.0 803.7 842.0 619.7 99.6 Aug. 27 5,467.2 3,105.5 1,318.1 ,787.4 801.8 841.4 617.3 101.0 Sept. 3 5,478.3 3,113.2 1,313.3 ,799.9 805.6 841.7 616.5 101.2 Sept. 10 5,448.3 3,073.2 1,292.0 ,781.1 814.9 842.0 617.0 101.2 Sept. 17 5,397.3 3,022.1 1,262.4 ,759.7 814.8 841.8 618.2 100.5 Sept. 24 5,422.7 3,050.9 1,255.2 ,795.6 810.1 839.8 622.1 99.9 Oct.l 5,510.3 3,139.5 1,321.7 ,817.7 805.3 841.1 623.5 100.9 Oct.8 5,494.3 3,123.0 1,309.3 ,813.7 804.6 841.7 623.9 101.1 Oct. 15 5,478.1 3,108.0 1,337.2 ,770.8 802.1 843.3 623.2 101.5 Oct. 22 5,460.2 3,091.1 1,291.6 ,799.5 803.4 843.2 621.2 101.3 Oct. 29 5,503.2 3,138.3 1,334.1 ,804.2 797.7 845.2 621.3 100.6 Noy. 5 5,429.2 3,074.3 1,266.7 ,807.5 785.5 846.9 621.6 100.9 Nov. 12 5,429.7 3,063.2 1,262.8 ,800.4 796.1 847.6 622.1 100.8 Nov. 19 5,383.3 3,021.7 1,208.4 ,813.3 792.4 846.7 621.7 100.8 Nov. 26 5,384.0 3,018.5 1,195.2 ,823.3 795.8 847.7 621.3 100.7 Dec. 3 5,379.3 3,011.6 1,192.2 ,819.4 795.2 851.0 620.5 101.0 Dec. 10 5,358.4 2,989.1 1,154.1 ,835.0 796.6 852.7 620.4 99.6 Dec. 17 5,290.9 2,919.4 1,102.2 ,817.3 795.4 853.6 622.5 100.1 Dec. 24 5,266.8 2,894.9 1,075.5 ,819.4 792.6 854.5 624.6 100.1 Dec. 31 5,230.7 2,856.2 1,053.7 ,802.6 791.3 855.5 626.7 100.9 1942—Jan. 7 5,225.3 2,841.7 1,052.6 ,789.1 798.5 856.2 627.6 101.4 Jan. 14 5,199.1 2,816.9 1,012.3 ,804.6 796.5 856.7 627.0 102.0 Jan. 21 5,178.5 2,787.7 980.3 ,807.4 803.0 857.8 627.9 102.0 Jan. 28 5,163.7 2,771.6 977.6 ,793.9 801.6 857.5 631.0 102.0 Feb. 4 5,098.2 2,703.5 936.7 ,766.8 803.5 858.8 630.2 102.1 Feb. 11 5,081.6 2,687.5 926.4 ,761.1 802.9 859.1 630.0 102.2 Feb. 18 5,035.7 2,646.2 866.1 ,780.2 806.8 855.9 624.5 102.4 Feb. 25.... 5,069.0 2,675.5 879.4 ,796.0 809.2 856.2 626.2 102.0 Mar. 4 5,105.8 2,706.1 941.0 ,765.1 814.6 855.4 627.0 102.6 Mar. 11 5,112.1 2,714.6 955.6 ,759.0 815.8 852.7 626.6 102.4 Mar. 18 5,070.3 2,672.5 917.8 ,754.7 817.5 851.6 625.6 103.1 Mar. 25 5,051.7 2,654.4 908.1 ,746.3 817.2 851.4 625.0 103.7 Apr. 1 5,082.4 2,684.0 932.0 ,752.0 819.7 849.6 624.9 104.3 Apr. 8 5,079.5 2,675.1 918.2 ,756.9 827.3 847.2 625.2 104.7 Apr. 15 5,300.8 2,893.6 1,132.1 ,761.6 830.1 845.3 627.1 104.6 Apr. 22 5,317.1 2,912.9 1,129.7 1,783.2 829.1 844.4 626.6 104.1 Apr. 29 5,309.6 2,906.1 21,106.7 21,799.4 843.2 626.6 2103.9 1 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. 2 Outstanding amounts on Apr. 29, 1942, in millions of dollars: Foreign central bank funds in New York, 1,171.8; other foreign banking funds in U. S., 2,374.4; U. S. banking funds abroad, 329.3; brokerage balances (net due "foreigners"), 26.7. NOTE.—Statistics reported by banks, bankers, brokers, and dealers. Data by countries and geographic areas through December 31, 1941, have been published in earlier BULLETINS for all types of capital movement in the above table (except columns 3 and 4), and for outstanding short-term liabilities to and claims on "foreigners" as reported by banks and brokers. For description of the statistics, see BULLETIN for April 1939, pp. 284-296, and May 1937, pp. 394-431. AUGUST 1941 855 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CENTRAL BANKS Assets of issue department Assets of banking department Liabilities of banking department Bank of England Note (Fi p g o u u re n s d s in s m te i r l l l i i n o g n ) s of Gold1 a O ss th e e ts r 2 C C oi a n sh rese N rv o e t s es a c v n o D a d u n i s n c - a e t d s s - Se t c ie u s ri- ci t r i c o u n l 3 a- Bankers' D P e u p b o l s i i c ts Other l O ia t t i b h e i s e li r - 1929—Dec. 25 145.8 260.0 .2 26.3 22.3 84.9 379.6 71.0 8.8 35.8 17 9 1930—Dec. 31 147.6 260.0 .6 38.8 49.0 104.7 368.8 132.4 6.6 36.2 18.0 1931—Dec. 30 .. . 120.7 275.0 .6 31.6 27.3 133 0 364 2 126.4 7 7 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 1935—Dec. 25 200.1 260.0 .6 35.5 8.5 94.7 424.5 72.1 12.1 37.1 18.0 1936—Dec. 30 . .. 313.7 200.0 .6 46.3 17.5 155.6 467.4 150.6 12.1 39.2 18.0 1937—Dec. 29 326.4 220.0 .8 41.1 9.2 135.5 505.3 120.6 11.4 36.6 18.0 1938—Dec. 28 326.4 230.0 .8 51.7 28.5 90.7 504.7 101.0 15.9 36.8 18.0 1939—Dec. 27 4.2 580.0 1.0 25.6 4.3 176.1 554.6 117.3 29.7 42.0 17.9 1940—Dec. 25 .2 6 630.0 .9 13.3 4.0 199.1 616.9 135.7 12.5 51.2 17.9 i 1941_june 25 .2 680.0 1.7 41.3 6.9 156.2 639.0 112.5 25.3 50.4 17.8 July 30 .2 680.0 1.7 21.8 6.5 181.7 658.4 132.1 11.3 50.5 17.9 Aug. 27 .2 680.0 1.8 15.5 6.4 183.9 664.7 125.7 14.9 49.1 18.0 Sept 24 .2 6 730.0 1.6 58.8 4.6 149.8 671.4 133.9 10.6 52.2 18.1 Oct. 29 .2 730.0 1.3 36.9 4.5 163.3 693.3 117.0 13.7 57.7 17.7 Nov. 26 .2 730.0 .6 20.2 4.0 192.3 710.0 136.4 9.8 53.1 17.8 Dec. 31 .2 6 780.0 .3 28.5 6.4 267.8 751.7 219.9 11.2 54.1 17.9 1942—Jan. 28 .2 780.0 .4 37.8 8.2 184.5 742.4 145.5 10.2 57.4 17.9 Feb. 25 .2 780.0 .3 30.7 4.2 182.8 749.6 136.8 11.5 51.7 18.0 Mar. 25 .2 780.0 .4 25.2 5.1 204.8 •755.1 156.8 9.3 51.4 18.1 Apr. 29 .2 5830.0 .7 59.1 7.5 138.4 771.2 122.6 14.0 51.4 17.7 May 27 .2 830.0 1.2 41.6 6.6 170.5 788.6 146.6 7.6 47.8 17.8 June 24 .2 830.0 1.3 34.2 5.5 . 165.8 796.0 133.6 8.0 47.3 17.8 Assets Liabilities Bank of Canada Dominion and provincial government Deposits (Figures in millions of an S d te U rl n in it g ed securities Other Note Other Canadian dollars) d S o ta ll t a e r s s S t h e o rm rt S - Other assets circulation* Ch b a a r n te k r s ed D g o m o m v e i e n n r t i n o - n Other liabilities 1935—Dec 31 180.5 4.2 30.9 83.4 8.6 99.7 181.6 17.9 .8 7.7 1936—Dec. 31 179.4 9.1 61.3 99.0 8.2 135.7 187.0 18.8 2.1 13.4 1937—Dec. 31 179.8 14.9 82.3 91.6 21.7 165.3 196.0 11.1 3.5 14.4 1938—Dec. 31 185.9 28.4 144.6 40.9 5.2 175.3 200.6 16.7 3.1 9.3 1 19 9 4 3 0 9 — — D D e ec c # . 3 3 0 1 22 ( 5 8) .7 ' 6 3 4 8 . . 3 4 4 1 4 8 8 1 . . 4 9 1 4 2 9 7 . . 9 3 1 5 2 . . 5 4 3 2 5 3 9 2 . . 9 8 2 21 1 7 7 . . 7 0 4 1 6 0 . . 3 9 1 9 7 . . 5 9 2 1 8 3 . . 5 3 1941—June 30 . . . . .5 S01.5 142.9 28.9 393.4 200.3 54.5 10.6 15.0 July 31 .5 522.3 138.0 14.9 404.7 216.3 33.3 4.7 16.7 Aug. 30 40.6 519.7 141.4 21.3 422.2 212.9 60.7 10.0 17.2 Sept. 30 109.3 516.4 146.3 19.9 435.3 207.5 124.6 6.4 18.2 Oct 31 42.5 462.2 234.7 29.6 448.9 231.8 60.3 2.4 25.7 Nov 29 113.8 428.7 228.5 20.3 463.0 247.2 53.2 7.2 20.7 Dec. 31 200.9 391.8 216.7 33.5 496.0 232.0 73.8 6.0 35.1 1942—Jan. 31 299.1 245.7 203.8 14.9 479.1 200.6 46.6 18.7 18.7 Feb. 28 . .. 377.0 209.5 204.6 17.6 493.2 236.8 49.4 11.1 18.2 Mar. 31 276.3 386.6 209.4 19.7 508.9 241.9 118.8 6.1 16.3 Apr. 30 . . .. 209.5 413.1 223.5 19.1 516.7 214.7 104.5 7.3 22.0 May 30 187.4 430.8 223.8 12.9 528.6 186.0 96.7 23.4 20.1 June 30 .9 493.7 322.1 26.2 541.2 221.3 31.3 26.7 22.4 1 Through February 1939, valued at legal parity of 85 shillings a fine ounce; thereafter at market price, which fluctuated until Sept. 6, 1939, whe it was officially set at 168 shillings per fine ounce. 2 Securities and silver coin held as cover for fiduciary issue, the amount of which is also shown by this figure. 3 Notes issued less amounts held in banking department. 4 On Jan. 6,1939, 200 million pounds sterling of gold (at legal parity) transferred from Bank to Exchange Equalization Account; on Mar. 1, 1939, about 5.5 million pounds (at current price) transferred from Exchange Account to Bank; on July 12, 1939, 20 million pounds transferred from Exchange Account to Bank; on Sept. 6,1939,279 million pounds transferred from Bank to Exchange Account. 5 Fiduciary issue increased by 50 million pounds on June 12,1940, Apr. 30, Aug. 30, and Dec. 3,1941, and Apr. 22,1942. 6 Securities maturing in two years or less. 7 Includes notes held by the chartered banks, which constitute an important part of their reserves. 8 On May 1, 1940, gold transferred to Foreign Exchange Control Board in return for short-term government securities (see BULLETIN for July 1940, pp. 677-678). NOTE.—For further explanation of table for Bank of England see BULLETIN for February 1931, pp. 81-83. The headings in the table for the Bank of Canada correspond to the items in that Bank's statements, except that the headings "Other assets" and "Other liabilities" include certain small asset and liability items shown separately in the statements. 856 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Central Banks—Continued Assets Liabilities Bank of France [Figu o re f s f i r n a n m c i s l ) lions Gold1 F c o h e r a e x n i - g g e n m O a p rk en et D 2 om S e p s e t c ic ia l b 2 ills Other c F u c o p o r A G a s t o t d o i s c v v o 3 - n a e n rn c m e O s e t n t h o t er2 a O s t s h e e ts r c N i t r i c o o u t n e la- G m ov e e n r t n- D C e . p A o . s R it . s 4 Other l O ia t t i b h e i e s 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 5 97,267 112 11,273 2,345 5,149 34,673 20,094 151 322 1,914 14,751 2,925 1940— N O D A S Ju e u e o c p n c g t v . . e t . . . 3 2 1 2 2 2 1 6 0 9 8 6 6 6 6 6 6 8 8 8 8 8 8 4 4 4 4 4 4 , , , , , , 6 6 6 6 6 6 1 1 1 1 1 1 6 6 6 6 6 6 \\ (7 1 7 7 0 : 8 2 44 O( ( , 7 1 ! 7 ) > 7 ) 3 1,5I18 111,885 3 5 6 2 7 9 6 4 2 7 , , , , , 2 3 3 8 2 0 1 9 0 0 0 7 7 6 0 3 6 6 6 6 6 9 3 6 5 4 1 , , , , , , 3 9 2 2 1 2 4 0 5 5 9 0 0 0 0 0 5 0 25 S( , 7 2 ) 21 2 2 2 2 1 1 1 1 0 1 9 7 8 4 5 3 8 4 , , , , , , 1 3 4 5 4 1 7 3 8 7 6 3 6 9 3 8 9 1 1 1 , , 0 0 9 9 9 7 4 9 8 9 9 4 9 7 4 5 0 8 3 4 3 3 2 1 8 4 9 7 , , , , , 9 4 1 2 9 3 0 0 0 3 0 0 7 0 2 2 2 2 2 2 2 7 5 5 8 5 4 , , , , , , 2 4 7 2 0 9 0 0 0 2 7 4 2 5 0 6 5 1 3 2, , ( ( 8 5 7 7 ) ) 4 8 8 6 1941—July 31 84,598 11 43,194 661 3,646 117 715 69 500 23,179 242 000 1,318 60 612 33,978 3 741 A Se u p g t . . 2 T 8 P 8 8 4 4 , , 5 5 9 9 8 8 3 3 7 7 4 4 4 1 00 , ,, 0 77 1 72 4 60 6 6 , , (4 1 7 3 1) 9 9 1 12 1 3 7, 5 5 5 7 5 8 6 6 4 7 , , 7 70 0 0 0 2 2 22 1 0 , , 8 86 2 40 6 65 2 2 4 4 4 8 , , 0 9 9 9 9 3 6 59 0 , , 7 1 1 9 4 3 29 (7 ,1 ) 79 4 3 , , 4 7 0 6 2 3 Oct. 30 84,598 37 41,138 1 . 7,849 129,518 60,500 23,555 255,684 1,272 60,932 25,999 3,309 Nov. 27 84,598 38 41,654 5 5,348 129 568 68 900 21 016 260 772 1,371 61,073 24,431 3,479 Dec. 31 84,598 38 42,115 12 4,517 142,507 69.500 22,121 270,144 1,517 64,580 25,272 3,894 1942—Jan. 29 84,598 38 42,071 16 4,855 149,562 64,700 20,138 273,281 1,350 59,649 27,797 3,900 Feb. 26 84,598 38 42,043 18 5,588 149,754 67,400 20,086 278,392 1,173 59,203 27,287 3,469 Mar. 26 84,598 38 42,314 16 4,433 156,386 67,000 20,056 282,848 852 56,396 30,251 4,493 Apr. 30 84,598 38 42,651 13 4,581 162,898 68,300 21,365 291,654 775 59,668 28,955 3,391 Assets Liabilities Reichsbank Reserves of gold and Bills (and Securities (Figures in millions of foreign exchange checks), Note Other reichsmarks) Total Gold i T n r c e l a u s d u i r n y g Se l c o u an ri s ty E as l ig n i o b t l e e Other O as t s h e e t r s cir t c io u n la- Deposits lia ti b e i s lireserves bills cover 1929—Dec. 31.... 2,687 2,283 2,848 251 92 656 5,044 755 736 1930—Dec. 31.... 2,685 2,216 2,572 256 102 638 4,778 652 822 1931—Dec. 31.... 1,156 984 4,242 245 161 1,065 4,776 755 1,338 1932—Dec. 31.... 920 806 2,806 176 398 1,114 3,560 540 1,313 1933—Dec. 30.... 396 386 3,226 183 259 322 735 3,645 640 836 1934—Dec. 31.... 84 79 4,066 146 445 319 827 3,901 984 1,001 1935—Dec. 31.... 88 82 4,552 84 349 315 853 4,285 1,032 923 1936—Dec. 31.... 72 66 5,510 74 221 303 765 4,980 1,012 953 1937—Dec. 31.... 76 71 6,131 60 106 286 861 5,493 1,059 970 1938—Dec. 31.... 76 71 8,244 45 557 298 1,621 8,223 1,527 1,091 1939—Dec. 30.... 78 (8) 11,392 30 804 393 2,498 11,798 2,018 1,378 1940—Dec. 31.... 78 15,419 38 32 357 2,066 14,033 2,561 1,396 1941—Mar. 31. 78 15,367 23 32 352 1,672 14,188 2,127 1,210 Apr. 30 78 - 15,644 32 22 488 1,548 14,689 2,006 1,117 May 31 78 15,918 23 18 438 1,922 15,210 2,012 1,174 June 30 78 16,258 20 45 416 2,336 15,565 2,373 1,215 July 31 78 16,754 27 12 359 2,302 16,031 2,243 1,259 Aug. 30 77 17,306 25 16 384 2,343 16,502 2,326 1,323 O Se c p t. t . 3 3 1 0 * 7 7 7 7 1 1 8 8 , , 0 4 1 5 6 6 2 2 5 6 2 2 4 0 3 0 8 0 3 2, ( 2 7 6 ) 0 1 1 6 7 , , 9 4 1 3 8 2 2 2 , , 5 4 1 7 1 0 1, ( 3 7 5 ) 7 Nov. 29p 77 18,899 24 58 8 17,793 2,493 8 Dec. 31* 77 21,656 32 107 19,324 3,649 8 8 1942— FF J ee a lb n . . 3 2 1 8 * ?.. 7 7 7 7 2 2 0 1 , , 8 4 8 5 4 8 2 2 8 3 1 1 5 4 1 4 (7) 1 1 8 9 , , 9 44 8 3 7 2 2 , , 4 4 1 2 7 6 (7) Mar. 31*.. 77 21,673 23 72 19,774 2,762 v Preliminary. 1 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. 2 For explanation of this item, see BULLETIN for July 1940, p. 732. 3 By a series of Conventions between the Bank of France and the Treasury, dated from Aug. 25,1940, through Apr. 30, 1942, advances of 169,000 million francs were authorized to meet the costs of the German army of occupation. 4 Central Administration of the Reichskreditkassen. 5 In each of the weeks ending Apr. 20 and Aug. 3, 1939, 5,000 million francs of gold transferred from Exchange Stabilization Fund to Bank of France; in week ending Mar. 7,1940, 30,000 million francs of gold transferred from^Bank of France to Stabilization Fund. 6 Figures taken from annual report of Bank for 1940. 7 Figure not available. 8 Gold not shown separately on Reichsbank statement after June 15,1939. NOTE.—For further explanation of tables see BULLETIN for February 1931, pp. 81-83, and July 1935, p. 463. AUGUST 1942. 857 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Central Banks—Continued Central Bank 1942 1941 Central Bank 1942 1941 (Figures as of last report (Figures as of last report date of month) June May Apr. June date of month) June May Apr. June Central Bank of the Argentine Re- Bank of the Republic of Colompublic (millions of pesos): bia-Cont. Gold reDorted seDaratelv 1,077 1,071 Deposits 56,336 59,021 52,405 Other gold and foreign exchange 529 363 Other liabilities 43,116 43,682 40,212 Negotiable Government bonds 376 364 National Bank of Denmark (millions Rediscounted paper 15 of kroner): (Mar.)2 Other assets 224 252 Gold 98 103 Note circulation 1,472 1,248 Foreign exchange 26 25 Deposits—Member bank 588 635 Clearing accounts (net) 910 581 30 104 Loans and discounts 42 64 Other 24 10 Securities. . 53 173 Foreign exchange sold forward 3 3 Government compensation ac- Other liabilities 88 67 counts 125 Commonwealth Bank of Australia Other assets (3) 728 (thousands of pounds): Note circulation 815 748 Issue department: Deposits 1,172 719 Gold and English sterling 25,954 24,954 17,705 Other liabilities (3) 208 Securities 80,939 78,453 51,367 Central Bank of Ecuador (thou- Banking department: sands of sucres): (Feb.)2 Coin bullion and cash 6,704 6,702 4,136 Gold 73,797 67,426 32 883 29,148 53,995 Foreign exchange (net) 42,879 12,756 Loans and discounts 29 647 29,447 21,234 Loans and discounts 86,690 62,041 106 130103 213 49,219 Other assets 23,123 23,652 DeDosits 127'592 122,222 120,883 Note circulation 117,892 81,330 Note circulation 98,364 95,864 67,864 Demand deposits 74,294 51,224 National Bank of Belgium and Other liabilities 34,301 33,322 Bank of Issue of Brussels (mil- National Bank of Egypt7 (thoulions of belga) :l (Mar.)2 sands of pounds): (Mar.)2 Gold 4,332 4,331 Gold .. 6,251 6,241 Foreicn exchange 2,198 736 Foreign exchange 4,273 1,749 Credits to State and public bodies. 4,063 3,010 Loans and discounts 2,268 2,678 Credits to private economy 164 110 British, Egyptian, and other Gov- Reichskreditkasse 744 620 ernment securities 107,357 78,937 Other assets (3) P) Other assets 6,557 6,238 Note circulation 10,388 7,987 Note circulation 52,035 41,616 Demand deposits 694 415 Deposits—Government 18,604 7,515 Postal Checking Office 760 709 Other 43,678 35,051 Other liabilities (3) P) Other liabilities 12,388 11,660 National Bank of Bohemia and Mo- Central Reserve Bank of El Salvaravia (millions of koruny): (Mar.)2 dor (thousands of colones): Gold 1,514 1,503 Gold 15,244 15,241 13,233 Foreign exchancre 777 788 Foreign exchange 12 250 11,738 1 638 Discounts 840 660 Loans and discounts 468 422 1,084 Loans (4) Government debt and securities.. 7,211 7,224 6,449 Other assets 13,231 9,735 Other assets .. . 2 257 2,327 1,534 Note circulation 9,755 7,101 Note circulation 22,886 22,904 14,961 Demand deposits 2,943 2,091 Deposits 10,554 10,064 4,405 Other liabilities 3,664 3,494 Other liabilities 3,991 3,985 4,572 Central Bank of Bolivia (thousands (Dec. Bank of Finland & of bolivianos): 1941)2 Bank of Greece^ Gold at home and abroad 377,199 106,533 National Bank of Hungary (millions Foreign exchange 377,141 284,235 of pengo): (Mar.)2 Loans and discounts 147,904 231,955 Golds 100 124 Securities—Government 451,177 443,504 Foreign exchange reserve. 18 25 Other 11,204 9,127 Discounts 1,117 825 Other assets 33,727 32,530 Loans—To Treasury 760 803 Note circulation 641,572 531,199 To foreign countries 267 Deposits 597,290 464,407 Other 36 35 159,490 112,277 Other assets (4) 454 National Bank of Bulgaria!) Note circulation 1,999 1,756 Central Bank of Chile (millions of Demand deposits 380 209 pesos): Consolidated foreign credits of 1931. 35 Gold 148 148 147 Other liabilities . ft 267 Discounts for member banks 320 317 208 Reserve Bank of India (millions of Loans to Government 733 733 738 rupees): Other loans and discounts 854 836 507 Issue department: (Mar.)2 Other assets 104 93 102 Gold at home and abroad.... 444 444 Note circulation 1,547 1,579 1,232 Sterling securities. .. 2,129 1,188 Deposits—Sank 227 211 160 Indian Gov't. securities 1,363 913 Other 169 120 85 Rupee coin 275 366 Other liabilities 217 217 225 Note circulation 4,101 2,769 Bank of the Republic of Colombia Banking department: (thousands of pesos): Notes of issue department 110 142 Gold 28,339 28,288 31,508 Balances abroad 353 371 Foreign exchange 31,636 28,213 20,919 Treasury bills discounted 4 Loans and discounts 25,338 31,124 21,503 Loans to Government 175 2 Government loans and securities 59,126 58,245 56,582 Other assets 174 99 Other assets 32,280 32,528 30,794 Deposits 637 457 Note circulation 77,268 75,695 68,688 Other liabilities 179 156 1 Separate figures for National Bank of Belgium not available. The Bank of Issue of Brussels was founded by the German Military Administration on June 27,1940; it has no note issue, drawing its resources principally from advances from the National Bank and deposits by the Postal Checking Office. 2 Latest month for which report is available for this institution. 3 Figure not available. 4 Less than 500,000. 5 For last available reports from the central banks of Bulgaria (May 1941), Finland (May 1941), and Greece (March 1941), see BULLETIN for March 1942, pp. 280-281. 6 Represents Bank's claim on the Government for the Bank's foreign exchange losses resulting from the revaluation of the krone on Jan. 23, 1942. 7 Items for issue and banking departments consolidated; after March 1942, statements published only irregularly. 8 Gold revalued in week ending Sept. 30,1941, at 0.2175 gram fine gold per pengo, an increase in gold value of the pengo of approximately 24 per cent. 858 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Central Banks—Continued Central Bank 1942 1941 Central Bank 1942 1941 (Figures as of last report (Figures as of last report date of month) June May Apr June date of month) June May Apr, June Bank of Japani South African Reserve Bank—Cont. Bank of Java (millions of guilders): (Jan.)2 Note circulation 28,567 25,761 Deposits 73,599 64,254 Gold .„... 407 327 Other liabilities 4,448 3,944 Foreign bills 24 19 Bank of Sweden (millions of kronor): Loans and discounts 171 79 Gold 678 616 424, Other assets. 140 111 Foreign assets (net) 542 620 803 Note circulation 339 238 Domestic loans and investments.. 876 913 678 Deposits 366 260 Other assets 1,126 1,094 947 Other liabilities 37 37 Note circulation 1,629 1,638 1,449 Bank of Mexico (thousands of pesos): Demand deposits 1,094 1,090 603 Metallic reserve3 219,442 213,631 205,831 174,443 Other liabilities 500 495 800 "Authorized" holdings of securi- Swiss National Bank (millions of ties, etc 599,075 576,562 550,058 503,437 francs): Bills and discounts 108,112 118,844 115,340 45,227 Gold 3,442 3,442 3,443 2,283 Other assets.. 57,754 49,625 54,781 70,082 Foreign exchange 142 136 129 1,311 Note circulation 607,209 584,815 563,073 460,997 Loans and discounts 287 223 103 Ne d t e h O D G rs e t e o ) r h m l : l e d a a r . n n .. l d d ia s b li i B a li b a t i i n m l e i k s ti es (millions of guil- 2 10 7 6 0 , , 6 5 1 5 6 9 2 1 6 0 9 4 , ,1 6 6 8 7 0 ( 2 1 M 6 0 a 1 0 2 r , , , . 0 2 6 ) 2 5 8 * 6 1 6 2 9 3 5 1 6 , , , 0 4 7 2 1 7 3 4 8 Cent N O O O r o t t t a h h h t l e e e e r r r B c l a s i a i r i s a g n c s b h u e k i l t t l a s i l t t o i i i a f e o b s n t il h it e i e R s epublic of ( 2 1 4 ) , , ) 4 2 7 4 7 6 2 ( ( 1 4 ) , , ) 6 2 2 3 2 7 2 1 , ,5 2 2 3 3 4 8 0 5 1 1 0 2 1 , , 1 5 2 2 4 1 2 5 6 5 0 5 Silver (including subsidiary coin). 8 14 Turkey (thousands of pounds): (Jan.)2 Foreign bills 1,128 308 Gold 111,454 120,572 Discounts 1 95 Foreign clearing accounts 71,022 44,988 Loans ,195 194 Loans and discounts 485,744 446,226 Other assets.. (4) 275 Securities 191,019 191,321 Note circulation 2,217 1,686 Other assets 18,636 32,535 Deposits—Government 12 Note circulation 520,521 522,066 Other 295 154 Deposits—Gold 79,358 79,358 Other liabilities 55 Other 110,438 103,268 Reserve Bank of New Zealand (thou- Other liabilities 167,558 130,951 sands of pounds): Bank of the Republic of Uruguay Gold 2,802 2,802 2,802 (thousands of pesos): Sterling exchange reserve 22,775 20,614 19,967 Issue department: 'Mar.)2 Advances to State or State under- Gold and silver 86,235 86,235 takings 33,753 31,191 18,766 Note circulation 119,858 109,479 Investments 4,146 4,146 3,77. Banking department: Other assets 1,058 861 1,648 Gold . 66,839 82,841 Note circulation 24,652 24,077 21,843 Notes and coin 32,488 23,075 Demand deposits 36,895 32,592 22,678 Advances to State and to Other liabilities 2,985 2,945 2,434 government bodies 31,661 41,336 Bank of Norwayi Other loans and discounts 103,992 87,462 Central Reserve Bank of Peru (thou- Other assets 120,103 107,309 sands of soles): Deposits 125,929 127,660 Gold and foreign exchange 67,254 58,102 Other liabilities 229,154 214,364 Discounts 31,320 22,942 Central Bank of Venezuela (thou- Government loans 208,330 144,375 sands of bolivares): Other assets 6,861 10,497 Gold 170,677 170,677 170,677 123,805 Note circulation 222,437 162,234 Foreign exchange (net) 26,234 19,936 17,925 33,065 Deposits 70,331 50,704 Credits to national banks 35,230 35,230 35,230 38,000 Other liabilities 20,996 22,977 Other assets. 10,228 8,003 13,473 6,492 Bank of Portugal (millions of (Dec.2 Note circulation— escudos): (1941) Central Bank 147,030 144,161 141,155 77,405 Golds 1,343 1,274 National banks 46,600 47,581 50,298 89,728 Other reserves (net) 1,536 1,228 Deposits 42,782 35,813 39,811 30,587 Non-reserve exchange 3,193 1,273 Other liabilities 5,957 6,291 6,041 3,642 Loans and discounts 337 358 National Bank of .the Kingdom of Government debt 1,031 1,031 Yugoslavial Other assets. 935 872 Bank for International Settlements Note circulation 4,488 3,188 (thousands of Swiss gold francsfi): Other sight liabilities 3,101 2,148 Gold in bars 45,493 30,805 Other liabilities 786 699 Cash on hand and on current ac- National Bank of Rumania (millions (Oct. count with banks 33,729 36,288 of lei): 1941)2 Sight funds at interest 15,94r 16,665 Gold 33,881 32,97- Rediscountable bills and accept- Special exchange accounts 18^ 133 10,045 ances (at cost) 147,553 143,071 Loans and discounts 32,182 30,143 Time funds at interest 21,050 22,414 Special loans (in liquidation) 565 58. Sundry bills and investments 212,383 220,933 Government debt 9,629 9,609 Other assets... 142 140 Other assets 38,684 27,713 Demand deposits (gold) 29,026 22,838 Note circulation 92,244 77,081 Short-term deposits (various cur- Demand deposits 28,215 22,176 rencies) : Other liabilities 12,617 11,810 Central banks for own account 16,135 18,298 South African Reserve Bank (thou- Other 5,955 3,446 sands of pounds): Long-term deposits: Special ac- Gold . 52,036 51,788 counts 229,001 229,001 Foreign bills 1,060 780 Other liabilities 196,176 196,733 Other bills and loans 25 518 Other assets 53,493 40,87' 1 For last available reports from the central banks of Japan (September 1941), Norway (March 1940), and Yugoslavia (February 1941), see BULLE- TIN for March 1942, p. 282. 2 Latest month for which report is available for this institution. 3 Includes gold, silver, and foreign exchange forming required reserve (25 per cent) against notes and other demand liabilities. 4 Figure not available. 5 Valued at average cost beginning October 1941. 6 See BULLETIN for December 1936, p. 1025. 859 AUGUST 1941 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MONEY RATES IN FOREIGN COUNTRIES DISCOUNT RATES OF CENTRAL BANKS fPer cent per annum 1 Central bank of— Date effective U K n in it g e - d France Ger- Bel- Ne e t r h - - Swe- Sw er i - tz- b C an e k n t o r f a — l R Ju 3 a l 1 t y e ef D fec a t t i e ve ba C n e k n t o r f a — l R Ju 3 a l 1 t y e ef D fe a ct t i e ve dom many gium lands den land In effect Oct. 2, 1936 2 3 4 2 3 2H 2 Albania Mar. 21, 1940 Japan 3.29 Apr. 7, 1936 Oct. 9 Argentina Mar. 1, 1936 Java 3 Jan. 14, 1937 Oct. 16 2 Belgium 2 Jan. 25, 1940 Latvia 5 Feb. 17, 1940 Oct. 20 2% Bohemia and Lithuania. .. 6 July 15, 1939 Nov. 26 Moravia Oct. 1, 1940 Mexico June 4, 1942 Dec. 3 2 Jan. 28, 1937 4 June 15 6 i • July 7 5 Bolivia 6 Nov. 8, 1940 Netherlands June 27, 194.1 Aug. 4 4 British India.. 3 Nov. 28, 1935 New Zea- Sept. 3 Bulgaria 5 Dec. 1,1940 land July 26, 1941 Nov. 13 3 Canada Mar. 11, 1935 Norway 3 May 13, 1940 May 10 1938 4 Chile... 3-4H Dec. 16, 1936 Peru 5 Aug. 1, 1940 May 13 . .. 2y* Colombia July 18, 1933 Portugal.... 4 Mar. 31, 1941 May 30 3 Sept. 28 3 O N c o t v . . 2 2 7 5 ly* 2% Denmark 4 Oct. 16, 1940 Rumania.... 3 Sept. 12, 1940 Jan. 4, 1939 Ecuador 7 May 26, 1938 South Africa 3 June 2, 1941 Apr. 17 4 El Salvador... Mar. 30, 1939 Spain 4 lMar. 29, 1939 May 11 3 Estonia Oct. 1, 1935 Sweden 3 May 29, 1941 July 6 Finland Dec. 3, 1934 Switzerland. Nov. 26, 1936 Aug. 24.. 4 Aug. 29 3 Sept. 28 3 Oct. 26 2 France . IK Mar. 17, 1941 Turkey 4 July 1, 1938 Dec. 15 3 Germany Apr. 9, 1940 United King- Jan. 25, 1940 2 Greece 6 Mar. 1, 1942 dom 2 Oct. 26, 1939 Apr. 9 Hungary 3 Oct. 22, 1940 U.S. S. R... 4 July 1, 1936 May 17 3H Italy May 18, 1936 Yugoslavia. - 5 Feb. 1, 1935 Mar. 17, 1941 IK \foi7- 90 3 June 27 1 Not officially confirmed. In effect July 31, NOTE.—Changes since June 30: none. 1942 2 IK 3H 2 3 IK OPEN MARKET RATES [Per cent per annum] Switzer- United Kingdom Germany Netherlands Sweden land Month Bankers' Treasury Bankers' Private Private Money Loans Private ac 3 c e m p o ta n n th ce s s 3 m bi o ll n s ths Da m y- o t n o e - y day o a n l lo d w ep a o n s c i e ts dis r c a o te unt Da m y- o t n o e - y day dis r c a o te unt 1 m fo o r nth m up o n to th 3 s dis r c a o te unt 1929—May 5.21 5.21 4.67 7.49 9.32 5.37 5.88 3.34 1930—May 2.16 2.11 1.93 3.89 3.62 2.29 2.53 2.44 1931—May 2.24 2.21 1.87 4.65 5.38 1.39 1.55 1.12 1932—May 1.44 1.10 1.29 4.87 5.91 .60 1.03 1.50 1933—May .50 .37 .58 C3.88 5.24 2.11 1.69 1.50 1934—May .91 .85 .85 C3.88 4.72 1.33 1.22 1.50 1935—May .59 .51 .75 3.09 3.17 3.78 2.96 2.39 1936—May .55 .54 .75 2.92 2.76 2.15 1.82 2.25 1937—May .55 .51 .75 2.88 2.69 .17 1.00 1.00 1938—May .53 .51 .75 2.88 2.66 .13 .50 1.00 1939—May .73 .70 .75 2.77 2.46 .72 .80 1.00 1940—May .03 1.02 1.00 2.38 1.98 12.20 13.21 1.41 1941—May .03 1.00 1.00 2.25 1.78 1.93 2.36 1.25 1941—June .03 1.00 1.00 2.13 1.93 1.88 2.25 1.25 July .03 1.00 1.00 2.13 1.63 1.88 2.25 1.25 Aug .03 1.00 1.00 2.13 1.73 1.88 2.25 1.25 Sept .03 1.01 1.00 2.13 1.94 1.88 2.25 1.25 Oct .03 1.00 1.00 2.13 1.76 1.25 Nov .03 1.00 1.00 2.13 1.75 1.25 Dec .03 1.01 1.03 2.13 1.98 1.25 1942—Jan .03 1.01 1.04 2.13 1.92 1.25 Feb... .03 1.00 1.04 2.13 1.75 1.25 Mar .03 1.00 1.03 2.13 1.25 Apr .03 1.01 1.00 2.13 1.25 May .03/ 1.00 1.03 1.25 0 Corrected. 1 Figures are for period May 1-9, inclusive. NOTE.—For figures for other countries and references to explanation of tables see BULLETIN for September 1940, p. 1018. 86o FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

COMMERCIAL BANKS United Kingdom1 Assets Liabilities (11 F L i o g p n u o d r u e o n s n d i s c n l e s m t a e i r l r i l l n i i g o n n g b s ) a o n f ks. re C se a r s v h es M c n a o s l o h n l t o e i a y r c t n e d at B co il u ls n d te i d s- T r d e r e c e p e a o i s p s u t i r t s y 2 Securities c L u o s a to ns m t e o rs a O s t s h e e t r s Total D D e e m po a s n i d ts 3 Time3 lia O b t i h li e t r ies 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 1 398 1 043 256 1940—December 324 159 265 314 771 924 293 2,800 1,770 1,030 250 1941—June 311 143 193 482 880 874 311 2 946 1,870 1 075 248 July 306 139 275 476 902 866 267 2,991 1,898 1,093 240 August 316 140 266 469 935 850 264 2 997 1,909 1 088 242 September 330 134 315 531 939 839 269 3,115 1,991 1,123 243 October 328 132 270 596 986 837 273 3,176 2,023 1,153 246 332 127 246 651 999 825 280 3,208 2,054 1 154 250 December 366 141 171 758 999 823 324 3,329 2,168 1,161 253 1942—January 330 118 157 739 1008 832 288 3,222 2,088 1,134 249 February 318 122 112 646 1017 840 275 3,085 2,003 1,082 243 March 347 137 163 476 1,050 853 291 3,072 2,012 1,060 244 April 319 136 258 450 1,048 832 278 3,082 2,001 1,081 240 May 326 133 291 471 1,049 822 277 3,131 2,036 1,095 238 Assets liabilities Canada Entirely in Canada Se lo c a u n ri s ty Deposits payable in Canada (10 m c o o h f n a t C r h t a e f n r i e g a d u d r i e b a s n a n in d k o s m . l l i a l E r l s i ) o n n d s of Cash Security O lo t a h n e s r d a a u n b e d r o f n r a o e d m t Securities O as t s h e e t r s ci N r ti c o o u t n e la- excluding interbank deposits li O ab th il e i r ties reserves loans and dis- foreign Total Demand Time counts banks 1936—D ecember 240 114 791 161 ,384 554 103 2,303 755 1,548 837 1937—December 255 76 862 102 ,411 575 96 2,335 752 1,583 850 1938—December 263 65 940 166 ,463 535 88 2,500 840 1,660 843 1939—December 292 53 1,088 132 ,646 612 85 2,774 1,033 1,741 963 1940—December 323 40 1,108 159 ,531 570 80 2,805 1,163 1,641 846 1941—June 288 33 1,292 191 ,688 575 80 3,075 1,608 1,467 913 July 314 34 1,279 188 ,681 559 80 3,068 1,579 1,489 907 August 299 35 1,255 190 ,698 553 81 3,031 1,509 1,522 919 September 308 36 1,237 197 ,696 579 79 3,037 1,482 1,555 938 October 325 37 1,233 199 ,643 594 80 3,012 1,420 1,592 939 November . . 342 36 1,218 182 ,690 593 76 3,041 1,402 1,639 944 December 356 32 1,169 168 ,759 653 71 3,105 1,436 1,669 962 1942—Tanuarv 296 31 1,128 158 ,916 585 71 3,096 1,376 1,720 945 February 324 30 1,135 164 ,960 595 72 3,181 1,517 1,664 955 March 348 34 1.300 166 1,881 624 71 3,305 1,755 1,550 976 April 322 32 1,252 178 1,899 6.57 72 3,262 1,725 1,537 986 May 285 29 1,215 175 1,878 6()1 71 3,118 1,562 1,556 993 Assets Liabilities France (En m d i o ll f i o m ns o n o t f h f f r i a g n u c r s e ) s in re C se a r s v h es Du b e a n f k ro s m B c i o ll u s n d te i d s- Loans a O s t s h e e ts r Total || D D e e p m o a s n it d s Time a a c O n c w e ce p n s t- lia O b t i h li e t r ies 4 large banks 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 3 large banks 1940 March 4,021 3,691 32,003 7,113 1,690 43,755 43,410 345 1,044 3,718 September* 5,817 3,615 37,051 9,121 1,690 52,599 52,287 312 551 4,143 October 5,453 3,526 40,757 8,533 1,760 55,194 54,868 326 511 4,325 November 5,111 3,562 43,251 8,060 1,823 56,741 56,306 436 502 4,564 December 6,258 3,546 44,243 7,984 1,999 58,890 58,413 477 535 4,604 1941—February* 5,628 3,197 48,596 8,155 1,357 62,528 62,003 525 599 3,805 March 5,661 3,191 50,401 7,784 1,403 63,998 63,465 533 534 3,909 April 5,407 3,190 51,158 7,768 1,429 64,441 63,910 531 467 4,044 May 5,549 3,279 52,961 7,720 1,351 66,229 65,712 516 454 4,176 June 5,641 3,359 54,826 8,035 1,371 68.376 67.867 509 474 4,383 July* ;SS*.... 5,837 3,239 53,951 7,511 1,526 67,148 66,640 508 460 4,456 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 Represent six-month loans to the Treasury at 1J per cent, callable by the banks in emergency at a discount equal to the Bank of England rate. » Through December 1937, excludes deposits in offices outside England and Wales which are included in total. * No data available April through August 1940, January 1941, and since July 1941. NOTE.—FOI other back figures and explanation ot tables, and for figures for German commercial banks, see BULLETIN for August 1939, p. 699; June 1935, pp. 388-390, and Octobei 1933, pp. 641-646. / AUGUSI 1941 861 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE RATES [Averages of certified noon buying rates in NewYork for cable trsmsfers. In cents Der unit offoreign currency! Argentina Australia Year or month (peso) (pound) g B i e u l m - Brazil (milreis) B I r n it d i i s a h g B a u r i i - a Canada (dollar) Chile (peso) C (y h u in an a Official S E p x e p c o ia rt l Official Free (belga) Official Free (rupee) (lev) Official Free Official Export Sh h a a n i) g- 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 15.8788 37.523 1.2958 99.913 5.1240 29.751 1937 32.959 393.94 16.876 8.6437 6.1983 37.326 1.2846 100.004 5.1697 14.0000 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 5AUS 33.279 11.2111 96.018 5.1727 4.0000 11.879 1940 29.773 1322.80 305.16 116.880 6.0562 5.0214 30.155 190.909 85.141 5.1668 4.0000 6.000 1941..; 29.773 123.704 322.80 321.27 6.0575 5.0705 30.137 90.909 87.345 15.1664 14.0000 15.313 1941—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 Oct 29.773 23.704 322.80 321.37 6.0575 5.0803 30.151 90.909 88.781 Nov 29.773 23.704 322.80 321.43 6.0575 5.0896 30.151 90.909 88.604 Dec............ 29.773 23.704 322.80 321.50 6.0576 5.1331 30.130 90.909 87.395 1942—Jan. ...... 29.773 23.704 322.80 321.50 6.0580 5.1331 30.123 90.909 87.833 Feb 29.773 23.704 322.80 321.50 6.0580 5.1369 30.122 90.909 88.418 Mar. 29.773 23.704 322.80 321.50 6.0580 5.1369 30.122 90.909 87.666 Apr. 29.773 23.704 322.80 321.50 6.0580 5.1384 30.122 90.909 87.173 May 29.773 23.704 322.80 321.50 6.0580 5.1387 30.122 90.909 88.557 June 29.773 23.704 322.80 321.50 6.0580 5.1435 30.122 90.909 89.958 Year or month U (p o b e l i o s a o m ) - s C ^ l k o z o v e r c a u h n k o a ia ) - ( m D kr e a o n r n k - e) ( l F m a k i n a a n r d ) - k- F (f r r a a n n c c e ) ( m m G re a a i e r c n r k h - y ) s- G (d r m r e a a e c ) c h e - ( H K do o o ll n n a g g r) ( H p g e u a n r n g y - o) I ( t li a r l a y ) J ( a y p en a ) n M (p e e x s i o c ) o e N ( r g l e e a u r t n i ) h ld d - - s (p N Z l o a e e u n w a 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 13.4252 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 H9.308 1.8710 12 .0827 40.021 1.6715 22.958 18.475 5.0407 23.436 18.546 153.128 306.38 1941 57.004 12.0101 139.968 *24.592 119.770 15.0703 123.439 20.538 322.54 1941—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 Oct 56.980 25.088 20 567 322.63 Nov 56.993 25.088 20.544 322.71 Dec.....;::... 56.987 25.043 20.560 322.78 1942—Tan. . 56.987 20.564 322.78 Feb 56.997 20.562 322.78 Mar. 57.001 20 571 322.78 Apr. 57.049 20.574 322.79 May 57.005 20.567 322.78 lune 57.037 20.568 322.78 United Kingdom Uruguay Year or month N (k o r r o w n a e y ) P ( o z l l a ot n y d ) ( P e o s g c r a u t l d u o - ) R ( u n le m i u a ) a- ( A S p o o fr u u i n c th d a ) ( S p p es a e i t n a) S S m (d t e o e r t l n a t l l a i t e t r s - ) s S ( w kr e o d n e a n ) S e (f r w r l a a i n t n c z d ) - Offici ( a p l ound F ) ree Con- (peso) N co o n n - - ( Y s d l i u a n v g a i r o a ) 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 23.226 118.835 4.0375 .7111 440.17 10.630 51.736 23.991 22.525 443.54 62.011 136.789 2.2716 1940 122.709 3.7110 1.6896 397.99 9.322 46.979 23.802 22.676 '1403!50* 383.00 65.830 37.601 2.2463 1941 14.0023 398.00 19.130 47.133 »23.829 123.210 403.50 403.18 65.830 43.380 12.2397 1941—July.:::;; 398.00 47.160 403.50 403.23 65.830 43.789 398.00 47.160 403.50 403.18 65.830 43.745 Sept 398.00 47.160 403.50 403.27 65.830 43.836 Oct 398.00 47.160 403.50 403.29 65.830 45.796 Nov 398.00 47.160 403.50 403.42 65.830 48.125 Dec..;; 398.00 47.160 ......... ......... 403.50 403.50 65.830 52.783 1942—Jan 398.00 '•r<? 47.007 403.50 403.50 65.830 52.571 Feb 398.00 46.710 403.50 403.50 65.830 52.785 Mar 398.00 403.50 403.48 65.830 52.717 Apr 398.00 403.50 403.50 65.830 52.735 May 398.00 403.50 403.50 65.830 52.740 June 398.00 403.50 403.50 65.830 52.744 1 Average of daily rates for that part of the year during which quotations were available. NOTE.—Developments affecting averages during 1942: No rates certified: Straits Settlements—since February 14. 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 1942, see BULLETIN for March 1942, p. 285; February 1941, p. 183; February 1940, p. 178; September 1939, p. 831; March 1939, p. 236; and March 1938, p. 244. 861 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 United Nether- Switzer- Year or month States Canada Kingdom France Germany Italy Japan lands Sweden land (October (1926-30 (July 1914 (1926=100) (1926=100) (1930=100) (1913=100) (1913=100) (1928=100) 1900=100) =100) (1935=100) =100) 1926. 100 100 1 124 695 134 237 106 1 126 144 1930 86 87 100 554 125 85 181 90 1 103 126 1931 . . 73 72 88 500 111 75 153 76 1 94 110 1932 65 67 86 427 97 70 161 65 1 92 96 1933 66 67 86 398 93 63 180 63 1 90 91 1934 75 72 88 376 98 62 178 63 1 96 90 1935 80 72 89 338 102 68 186 62 100 90 1936 81 75 94 411 104 76 198 64 102 96 1937 . .. 86 85 109 581 106 89 238 76 114 111 1938 79 79 101 653 106 95 251 72 111 107 1939 77 75 103 2 681 107 99 278 74 115 111 1940 79 83 137 110 311 *88 146 143 1941 87 90 153 P112 329 172 184 1941—June 87 90 152 112 331 173 184 July 89 91 153 112 329 173 188 August 90 92 153 113 330 174 189 September 92 93 154 113 330 175 191 October 92 94 155 2*113 337 176 193 November 93 94 155 PI 13 340 178 198 December 94 94 156 347 179 199 1942—January .. ' 96 94 156 nu ^351 181 202 February .. . 97 95 159 P352 183 205 March 98 95 159 P114 184 207 April 99 95 160 *114 P186 208 May 99 95 161 P187 June 99 ^160 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 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 Canada United Kingdom Germany (1926=100) 1926=100) (1930=100) (1913=100) Year or month pr F o a d r u m cts Foods co O m it t i h m e e s o r d- pr F o a d r u m cts R f m a p g a c o w a a t o r n u t d a u l r s y n e - d d F f u m c a g l h c o l a i y t o e n u d f u r a l s e y - n d d Foods p I r n o tr d d i u u a c l s- ts p A r g t o u r d i r u c a u c l l t - s a p t f n r r i I i n d o n a i d d s l s h u r u e e a c s m d w - ts i- p tr I r i i n o s a d h d l e u u f d i s c n - t - s 1926 100 100 100 100 100 100 129 130 150 1930 88 91 85 82 82 87 100 100 113 120 150 1931 65 75 75 56 62 75 89 87 104 103 136 1932 48 61 70 48 55 70 88 85 91 89 118 1933 51 61 71 51 57 70 83 87 87 88 113 1934 65 71 78 59 64 73 85 90 96 91 116 1935 79 84 78 64 66 73 87 90 102 92 119 1936 81 82 80 69 71 74 92 96 105 94 121 1937 . . 86 86 85 87 84 81 102 112 105 96 125 1938 69 74 82 74 73 78 97 104 106 94 126 1939 65 70 81 64 67 75 97 106 108 95 126 1940 68 71 83 67 75 82 133 138 111 99 129 1941 , 82 83 89 71 82 89 146 156 1941—June # <# 82 83 89 71 82 89 145 156 114 100 132 July 86 85 90 72 82 90 146 157 114 100 132 August 87 87 91 72 83 91 146 157 114 100 132 September 91 90 92 73 85 92 147 158 113 101 132 October 90 89 93 74 85 93 148 158 November 91 89 94 74 85 93 149 158 December 95 91 94 75 86 92 151 158 1942—January 101 94 95 77 87 92 152 159 February 101 95 95 78 88 92 157 159 March 103 96 95 79 88 92 158 159 April 105 99 96 80 89 92 160 159 May 104 99 96 80 89 92 163 159 June 104 99 96 Sources.—See BULLETIN for May 1942,p. 451; March 1935, p. 180; and March 1931, p. 159. AUGUST 1941 863 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] Year or month ( U S 19 t n a 3 i 5 t t e - e 3 d s 9 (1 C a 9 a 3 d n 5 a - - 39 U K d ( n J i o u i n m t l g e y d - ( m 1 G 91 a e 3 r n - - y 14 N (1 l e a 9 t 1 n h 1 d e -1 s r 3 - S er ( w 1 J l 9 a u i 1 t n n z 4 e d - Year or month U ( S 19 t n a 3 i 5 t t e - e 3 d s 9 (1 C a 9 a d 3 n a 5 - -39 U K d ( n J i o n i u t m l g e y d - ( m 1 G 9 a 1 e 3 n r - - y 14 N (1 l e a 9 t n 1 h 1 d e -1 s r 3 -S e ( r w 1 J l 9 u a i 1 t n n 4 z e d - =100) =100) = 1 1 9 0 1 0 4 =100) =100) =100) =100) =100) = 1 1 9 0 1 0 4 ) =100) =100) =100) 1932 87 86 126 116 119 125 1932 98 99 144 121 141 138 1933 84 85 120 113 120 117 1933 92 94 140 118 139 131 1934 94 93 122 118 124 115 1934 96 96 141 121 140 129 1935, . . . 100 95 125- 120 118 114 1935 98 96 143 123 136 128 1936 101 98 130 122 120 120 1936 99 98 147 125 i 132 130 1937 105 103 139 122 127 130 1937 103 101 154 125 137 137 1938 98 104 141 122 130 130 1938 101 102 156 126 139 137 1939 95 101 141 123 130 132 1939 . . 99 102 158 126 140 138 1940 97 106 164 128 2140 146 1940 100 106 184 130 3148 151 1941 106 116 168 175 1941 105 112 199 174 1941—June 106 113 170 131 178 1941-June 105 111 200 134 175 July 107 117 167 134 179 July 105 112 199 136 177 August 108 121 167 133 180 August 106 114 199 136 178 September. 111 123 166 128 181 September... 108 115 199 133 178 October... 112 123 165 ^128 185 October 109 116 199 182 November 113 125 165 p126 188 November 110 116 200 ^132 184 December. 113 124 165 189 December 111 116 201 2*132 184 1942—January ... 116 122 163 »128 191 1942-January 112 115 200 186 February.. 117 123 163 194 February 113 116 200 P136 188 March 119 124 162 195 March 114 116 200 p136 189 April 120 124 160 pi32 197 Apr il . 115 116 199 191 May 122 124 160 May 116 116 200 June 123 *>126 p159 June......., 116 nn P199 ............ P Preliminary. 1 Revised index from March 1936 (see BULLETIN for April 1937, p. 373). 2 Average based on figures for 3 months; no data available since March 1940, when figure was 141. 3 Average based on figures for 5 months; no data available since May 1940, when figure was 149. Sources.—See BULLETIN for May 1942, p. 451; October 1939, p. 943; and April 1937, p. 373. SECURITY PRICES [Index numbers except as otherwise specified] Bonds Common stocks Year or month U St n a i t t e e s d K U in n g i d te o d m France Germany Nether- U S n ta it t e e d s (1926=100) Nether- ( p d r e i r c iv e e )1 d ( 1 D 9 e 2 c 1 e = m 10 b 0 e ) r (1913=100) (a p v r e ic ra e g )2 e lands3 (1 = 9 1 3 0 5 0 -3 ) 9 K U in n g it d e o d m France Germany ( 1 l 9 a 3 n 0 d = s 100) Number of issues 15 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 8 50.3 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 1936 109.5 131.2 76.3 95.8 109.1 117.5 97.0 77.2 91.6 66 1937 1110.2 124.6 75.1 98.7 3 101.8 117.5 96.3 97.4 102.6 104.2 1938 . . . 111.1 121.3 77.3 99.9 105.9 88.2 80.8 89.7 100.1 95.8 1939 113.8 112.3 83.9 99.0 90.9 94.2 75.9 98.3 94.1 89.7 1940 115.9 118.3 84.7 100.7 7 77.9 88.1 70.8 114.6 8 95.0 1941,.,., 117.8 123.8 80.0 72.5 1941—June 117.7 122.9 103.3 79.5 70.7 P272 138.1 July 118.7 124.7 103.1 83.2 72.5 *>27O 142.6 August 118.5 124.5 103.1 83.2 73.8 ?292 144.0 September 118.1 125.9 103.1 83.6 75.1 p305 146.4 October 118.8 125.5 80.4 74.8 P31l November 119.2 125.7 77.4 76.0 P329 December 117.5 125.5 71.8 74.8 *>348 1942—Tanuarv 117.5 126.8 72.6 76 0 P387 February 117.1 126.5 69.9 73.0 p390 March .... 116.7 127.1 66.0 72 6 April 117.8 127 5 63 3 72.5 Mav 117.7 126.8 63 2 73.0 June ... 118.0 126.7 66.1 73.7 p Preliminary. 1 Figures represent calculated prices of a 4 per cent, 20-y^ear bond offering a yield equal to the monthly average yield for 15 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 4H 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 averageyields. 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 figures 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. 864 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 ERNEST G. DRAPER JOHN K. MCKEE R. M. EVANS LAWRENCE CLAYTON, Assistant to the Chairman ELLIOTT THURSTON, Special Assistant to the Chairman OFFICE OF THE SECRETARY DIVISION OF BANK OPERATIONS CHESTER MORRILL, Secretary EDWARD L. SMEAD, Chief LISTON P. BETHEA, Assistant Secretary J. R. VAN FOSSEN, Assistant Chief S. R. CARPENTER, Assistant Secretary J. E. HORBETT, Assistant Chief FRED A. NELSON, Assistant Secretary DIVISION OF SECURITY LOANS OFFICE OF COUNSEL CARL E. PARRY, Chief WALTER WYATT, General Counsel J. P. DREIBELBIS, Assistant General Counsel DIVISION OF PERSONNEL ADMINIS- GEORGE B. VEST, Assistant General Counsel TRATION B. MAGRUDER WINGFIELD, Assistant General Counsel ROBERT F. LEONARD, Director DIVISION OF RESEARCH AND STATISTICS OFFICE OF ADMINISTRATOR FOR WAR LOANS COMMITTEE E. A. GOLDENWEISER, Director WOODLIEF THOMAS, Assistant Director KENTON R. CRAVENS, Administrator WALTER R. STARK, Assistant Director GARDNER L. BOOTHE, II, Assistant Administrator DIVISION OF EXAMINATIONS LEO H. PAULGER, Chief FISCAL AGENT C. E. CAGLE, Assistant Chief O. E. FOULK, Fiscal Agent WILLIAM B. POLLARD, Assistant Chief JOSEPHINE E. LALLY, Deputy Fiscal Agent FEDERAL FEDERAL OPEN MARKET COMMITTEE ADVISORY COUNCIL MARRINER S. ECCLES, Chairman CHAS. E. SPENCER, JR., BOSTON DISTRICT ALLAN SPROUL, Vice Chairman GEORGE L. HARRISON, NEW YORK DISTRICT ERNEST G. DRAPER Vice President R. M. EVANS R. R. GILBERT WILLIAM F. KURTZ, PHILADELPHIA DISTRICT H. G. LEEDY B. G. HUNTINGTON, CLEVELAND DISTRICT JOHN K. MCKEE RONALD RANSOM ROBERT V. FLEMING, RICHMOND DISTRICT M. S. SZYMCZAK H. LANE YOUNG, ATLANTA DISTRICT ALFRED H. WILLIAMS EDWARD E. BROWN, CHICAGO DISTRICT C. S. YOUNG President CHESTER MORRILL, Secretary S. E. RAGLAND, ST. LOUIS DISTRICT S. R. CARPENTER, Assistant Secretary LYMAN E. WAKEFIELD, MINNEAPOLIS DISTRICT WALTER WYATT, General Counsel W. DALE CLARK, KANSAS CITY DISTRICT J. P. DREIBELBIS, Assistant General Counsel E. A. GOLDENWEISER, Economist NATHAN ADAMS, DALLAS DISTRICT JOHN H. WILLIAMS, Associate Economist GEORGE M. WALLACE, SAN FRANCISCO DISTRICT ROBERT G. ROUSE, Manager of System Open Market Account WALTER LICHTENSTEIN, Secretary 865 AUGUST 1941 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 A. M. Crcighton Henry S. Dennis on... W. W. Paddock William Willctt K. K. Carrick F Or Wllif Carl B. Pitman1 New York ... Beardsley Ruml Edmund E. Day Allan Sproul L. R. Rounds R. M. Gidncy T W TTnrkh-** Walter S. Logan J. M. Rice Robert G. Rouse John H. Williams Philadelphia.. Thomas B. McCabe.. Warren F.Whittier.. Alfred H. Williams.. Frank J. Drinncn... W. J. Davis F C Will C. A. Mcllhcnny* C. A. Sienkiewicz Cleveland Gco. C. Brainard.... R. E. Klagcs M. J. Fleming F. J. Zurlinden C. W. Arnold Wm U Fl /»«•/- VII*«" R. B. Hays W. F. Taylor2 G. H. Wagner Richmond Robt. Lassiter W. G. Wysor Hugh Leach J.S. Waldcn,Jr J. G. Fry R. W. Mercer Atlanta Frank H. Necly J. F. Porter W.S. McLarin,Jr... Malcolm H. Bryan. H. F. Conniff L. M. Clark Chicago Simeon E. Leland C. S. Young H. P. Preston Allan M. Black1 J. H. Dillard Charles B. Dunn A. J. Mulroney Alfred T. Sihler St. Louis Wm. T. Nardin Oscar Johnston..... Chester C. Davis F. Guy Hitt O. M. Attcbery C. M. Stewart Minneapolis.. W. C. Coffcy. Roger B. Shepard.... J. N. Peyton 0. S. Powell A. W. Mills* F W ^wjincnn Harry I. Zicmcr Kansas City... R. B. Caldwell.. Robert L. Mehornay.. H. G. Lccdy Henry O. Koppang. J. W. Helm2 D. W. Woolley Dallas Jay Taylor J.B.C0220 R. R. Gilbert E. B. Stroud R. B. Colcman W. J. Evans W. O. Ford1 San Francisco. Henry F, Grady St. George Holden... Wm. A. Day Ira Clerk C. E. Earhart1 R. B. West 1 Cashier. 1 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. B. Wiltsc 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 Gco. S. Vardcman, 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. T. 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 866 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

t FEDERAL RESERVE SYSTEM BOUNDARIES OF FEDERAL RESERVE DISTRICTS AND THEIR BRANCH TERRITORIES == BOUNDARIES OF FEDERAL RESERVE DISTRICTS — BOUNDARIES OF FEDERAL RESERVE BRANCH TERRITORIES ^L BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM <§) FEDERAL RESERVE BANK CITIES • FEDERAL RESERVE BRANCH CITIES O FEDERAL RESERVE BANK AGENCY JUNE I, 1942 OO BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis