Federal Reserve Bulletin, 1946-03

F E D E R AL E S E R VE BULLETIN MARCH 1946 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EDITORIAL COMMITTEE ELLIOTT THURSTON WOODLIEF THOMAS CARL E. PARRY The Federal Reserve BULLETIN is issued monthly under the direction of the staff editorial committee. This committee is responsible for interpretations and opinions expressed, except in official statements and signed articles. CONTENTS PAGE Review of the Month—Recent Economic Developments. 219-226 The Foreign Loan Policy of the United States. . 227-231 The British Loan, by Marriner S. Eccles. 232-235 Report of Board on Pending Legislation on Housing. 236-239 Financing War Production and Contract Terminations Under Regulation V 240-248 Distinguished Service in War Finance. 248 Law Department: Consumer Credit—Suspension of License and Consent Injunction. . 249-251 Suit regarding Removal of Bank Directors. 251-252 Foreign Funds Control: Treasury Regulations. 252 Treasury Department Releases 252-254 Current Events . . . . 255-256 Foreign Banking Laws and Reports—Monetary and Banking Reform in Guatemala. 257-288 National Summary of Business Conditions. .... 289-290 Financial, Industrial, Commercial Statistics, U. S. (See p. 291 for list of tables). 291-339 International Financial Statistics (See p. 340 for list of tables) . 340-357 Board of Governors and Staff; Open Market Committee and Staff; Federal Advisory Council . 358 Senior Officers of Federal Reserve Banks; Managing Officers of Branches. 359 Map of Federal Reserve Districts. 360 Federal Reserve Publications (See inside of bac\ cover) Subscription Price of Bulletin A copy of the Federal Reserve BULLETIN is sent to each member bank without charge. The subscription price in the United States and its possessions, Bolivia, 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 in the United States for 10 or more copies to one address, 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 32 March 1946 NUMBER 3 RECENT ECONOMIC DEVELOPMENTS Since last autumn activity in many sectors 1935-39 average as compared with 168 in of the economy has been expanding and in- November; and in February is estimated at comes in the aggregate have been largely around 155. In March industrial production maintained, notwithstanding strikes in im- may advance above the November level, reportant manufacturing industries. Increases flecting the end of major work stoppages in activity have been substantial in the con- and also continued increases in output of struction, distribution, and service industries, building materials, most nondurable goods, and agricultural production has continued at and minerals. a high level. A marked decline in output of Production in the whole economy, includmanufactures, owing mainly to strikes in the ing agricultural as well as nonagricultural steel, automobile, and electrical machinery in- types of activity, is now above the level of dustries, has been offset in part by an increase any previous peacetime period and substanin output of minerals. Total industrial pro- tially above the average for the years 1935 duction in January, as measured by the to 1939. Employment in all major lines of activity except agriculture, mining, and con- INDUSTRIAL PRODUCTION struction is above the advanced 1941 level. PER CENT ,L VOLUME SEASONALLY ADJUSTED, 1935-39-100 FOR TOTAL Unemployment was around 2.7 million in 260 February, which is considerably less than the 1941 average of 5 million and the 1939 average of 9 million. Output of most goods and services is close to the capacity of the country's resources under present conditions. While there will be increases in capacity as additional veterans enter the labor market, as the organization of the work improves, and as the flow of materials and finished 1942 1944 1946 1940 1942 1944 1946 products assumes more normal relationships, these developments take time. The process Federal Reserve index. Groups are expressed in terms of points in the total index. Monthly figures, latest shown are preliminary estimates for February. of expansion would not be facilitated and might be delayed by a general advance in Board's index and shown in the accompany- the level of prices although selective price ing chart, was reduced to 159 per cent of the adjustments will be required. MARCH 1946 219 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REVIEW OF THE MONTH MARKET PRESSURE AND THE NEW WAGE- and that price ceilings would be advanced PRICE POLICY quickly, without the six months' test period of operations, whenever necessary to avoid The upward pressure on prices has conhardship as a result of approved increases in tinued in recent months as demands for wages and salaries. peacetime products quite generally have been in excess of the productive capacity of the The Executive Order providing for the reeconomy in the reconversion period. Cur- establishment of Federal wage and salary rent incomes have been more than double controls permits increases in wage rates conthose of the 1935-39 period, and buyers have sistent with the general advances that had had at their disposal a large volume of liquid occurred in related industries or labor market assets acquired during the war period. Heavy areas between August 18, 1945 and February buying has reflected deferred demands and 14, 1946; increases necessary to eliminate inforward purchasing as well as buying to meet equities and substandard conditions; and incurrent requirements. Consumers have been creases necessary to adjust for the rise in the attempting to replenish their stocks of goods, cost of living from January 1941 to Septemand producers and distributors have been ber 1945, which has been officially announced seeking to rebuild their inventories of peace- as being 33 per cent. time products. Producers, also, have been Accompanying the settlement of the steel adding considerably to their plant and equip- wage issue, which provided for an increase ment. To some extent this buying has been of lSl/ cents per hour, ceiling prices for fin- 2 of a protective nature. Business purchasers ished steel were raised by an average amount have sought to protect their sources of supply of 8 per cent. Federal announcements emand also to protect themselves against further phasized, however, that the granting of price increases in prices. increases for steel should not be interpreted to indicate that a general advance in com- Especially in the case of manufactured modity prices would be permitted. products, the Government has found it neces- In announcing the new wage-price policy sary to permit advances in price ceilings to the President requested the Congress to act cover higher costs and to encourage output promptly in extending the economic stabiliof particular products. With unemployment zation statutes without amendment and in continuing at-a low level and union organicontinuing the subsidy program for a full zations strengthened during wartime, labor year after June 30. The President also rehas been in a strong bargaining position. quested that price controls over new and ex- Business, too, has found that the markets for isting housing be enacted to restrain the presmost of its products were unlimited in this ent speculation in the real estate market, period and, with profits generally at a high which he described as one of the most danlevel, has frequently offered increases in wage gerous aspects of the present situation and rates of from 10 to 15 per cent. Prolonged one which works particular hardship on renegotiations over larger increases in wage turning veterans and their families. rates occurred, however, in a number of industries. Disputes in some leading industries were settled after the announcement of a new CIVILIAN INCOMES AND EXPENDITURES Federal wage-price policy in the middle of ADVANCE February. This announcement indicated that While wage-rate disputes reduced pay rolls certain wage controls would be re-established considerably in the metal manufacturing in- 220 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REVIEW OF THE MONTH dustries in January and February, wage and first two months of this year payments were salary payments in other manufacturing in- reduced somewhat, but may be expected to dustries continued to rise as a result of a fur- increase in March to a rate of close to 160 bilther expansion in employment and of in- lion dollars. This rate would be about the creases in wage rates. Wages and salaries same as the average level prevailing during in the construction, mining, distributive, fin- 1945 and somewhat above the average for the ance and service industries also continued to first quarter of 1946 shown on the accomincrease, after allowance for seasonal changes, panying chart. With a lower level of perreflecting chiefly gains in employment. In 1NDIVIDUAL INCOMES, EXPENDITURES, AND TAXES March, following the settlement of major industrial disputes at sharply increased rates of pay, total private wage and salary payments are likely to rise to a level substantially above the annual rate of 75 billion dollars last September and close to the 82 billion rate of last July. Net incomes of agricultural proprietors were reduced somewhat after the end of the war as a result of declines in prices of farm products, but since September have increased as prices of farm products have advanced above wartime peaks. At the same time net incomes of unincorporated business enterprises have increased, accompanying a large 1944 1945 expansion in retail trade and service activities. Department of Commerce data with quarterly figures since 1943 partly estimated by Federal Reserve. Figures for first These gains in entrepreneurial incomes, and quarter of 1946 are preliminary estimates. Amounts indicated as "Savings" represent excess of individual incomes over conthe gains in private wages and salaries, have sumer expenditures and taxes. been offset to some extent by reductions in sonal taxes effective in 1946, current incomes incomes received by Federal workers at shipavailable for spending or saving are close to yards and arsenals and in war agencies. Total the wartime peak. incomes received by the civilian population, Individuals apparently have reduced their however, have probably increased by about rate of savings out of current income in order 10 per cent since last September. This into increase considerably their purchases of crease has more than offset the sharp decline almost all classes of goods. The largest gains in Federal payments to the armed forces in purchases have occurred for those types of whose strength has been reduced from 12 products which had been at relatively remillion persons to about 5 million in the duced levels during the war, like metal prodmiddle of March. ucts, gasoline, tires, men's clothing, leather Total income payments, which were at an shoes, and meats. Sales of men's clothing at annual rate of 154 billion dollars in Septem- department stores in the fourth quarter of ber, advanced to a level of around 158 billion 1945 were 30 per cent above the same period in November and December. During the in 1944 and dollar sales of household ap- 221 MARCH 1946 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REVIEW OF THE MONTH pliances increased 245 per cent in the same supplies of most foods continue to fall short period from the greatly reduced wartime of the high level of consumer demand and volume. In the first two months of 1946 prices of practically all foods are at ceiling total sales at department stores were 17 per levels. Price ceilings, moreover, have been cent above a year ago, with a larger increase advanced in recent months by about 10 per in February than in January. Sales in Febru- cent for butter, cheese, and sugar, and only ary, after allowance for seasonal influences, the continued use of Federal subsidy paywere the largest on record by a considerable ments has prevented further price increases margin. for a number of food products. Supplies of most consumer goods continue The expansion indicated this year in civilto be short of demand and not all of the in- ian food supplies is the result solely of a recrease shown for expenditures reflects an ex- duction in military needs, since food producpansion in physical volume. Average prices tion is likely to be somewhat less than in of food, clothing, housefurnishings, fuels, 1945 if average crop yields prevail. Military and miscellaneous goods and services have requirements are expected to drop from 14 continued to advance in recent months. per cent of the total food available in 1945 Even if incomes should not rise above curto 3 per cent in 1946. Exports for relief rent levels, price pressures are likely to be purposes will be somewhat larger than last great in coming months until the present year but will account for only a small prolarge and expanding volume of production portion of the Nation's total food supply. provides ample supplies to meet accumulated Current market supplies of wheat are demands as well as current demands. short, and since the carry-over on July 1, These inflationary pressures apply to mate- 1946 may be only about 150 million bushels, rials as well as finished products and to supplies are likely to continue short unless producer's goods as well as consumer's goods. there is a bumper crop. Livestock feed sup- They are, moreover, not limited to the marplies are limited also and an unfavorable kets for newly produced goods; thev are also crop year for wheat and feed grains would important in the markets for existing assets have a serious effect on livestock production. like houses and nonresidential properties. January 1 stocks of feed were somewhat below the same date last year and, with the FOOD SUPPLY SITUATION amounts being fed larger than last year, the Food supplies available for civilian con- carry-over at the end of this season will be sumption in the United States are likely to quite small. be larger in 1946 than last year and, on a The Secretary of Agriculture has recently per capita basis, may exceed those of any asked for increases in agricultural production previous year, according to Department of above earlier goals and for certain changes Agriculture estimates. This situation is in in price policies in view of the high level of sharp contrast to conditions in the rest of domestic demand, the increase of export the world where 1946 food supplies will needs above previous forecasts, and the debe considerably below prewar levels with velopment of inadequate feed supplies. In famine conditions existing in some areas. February the Government was not able to Notwithstanding the relatively ample deliver sufficient wheat to meet its export proquantities that are available in this country, gram for critical foreign relief needs. A Fed- 222 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REVIEW OF THE MONTH eral program to economize on the use of period in 1945. The sharp expansion in these wheat in flour production has been an- fields accounts for most of the large rise since nounced and restrictions have been issued on last spring shown for private nonresidential the use of grains in the production of alco- construction in the accompanying chart. holic beverages. Measures have also been Awards.and expenditures for other private taken to conserve feed supplies. VALUE OF CONSTRUCTION ACTIVITY MILLIONS OF DOLLARS RECENT EXPANSION IN CONSTRUCTION ACTIVITY Since last spring private construction activity, which had been drastically limited during the war, has expanded more sharply than any other major type of economic activity. Accumulated and current demands, however, are so far in excess of the new facilities which can readily be made available that strong inflationary pressures have de- 1940 1942 1944 1946 1940 1942 1944 1946 veloped in housing and real estate mar- Figures beginning in 1944 are joint estimates of the Departkets generally. ment of Commerce and the Department of Labor; earlier figures are estimates of the Department of Commerce. Estimates do After the end of the war in Europe, Fed- not include repair and maintenance work. Monthly averages of quarterly data prior to July 1944; monthly data, thereafter. Latest figures shown are for February. eral restrictions on construction were modified to permit the building of new industrial nonresidential construction—mainly by the facilities and the alteration of existing plants railroads and utilities—have not increased needed in industrial reconversion. Soon af- much above wartime levels. ter V-J day restrictions on the construction After the middle of October, when all reof commercial and industrial buildings were strictions on building were dropped, awards dropped, and in the middle of October all for private residential building rose sharply, remaining restrictions on construction were and in the first two months of this year exremoved. penditures were seven times as large as Private contract awards for new factory a year ago. Most of the gain has been in the building have shown large gains during the construction of houses for sale or rent, and past year, and since last autumn these awards awards for houses for owner-occupancy, alhave far surpassed the previous peak levels though much higher than during the war, reached in 1937 and 1928. Contracts for have been proportionately less important new stores, garages, warehouses, and other than before the war. commercial buildings have also shown ex- Expenditures on construction of new ceptionally large increases during the past houses are now at about the levels reached at year, according to the F. W. Dodge Corpora- this season in the years 1939 to 1941, as is tion. Total expenditures on both commer- shown in the chart. In terms of the number cial and industrial building have been esti- of new dwelling units being built the commated to be at a level of about 182 million parison with the prewar level is less favordollars per month in January and February able, because construction costs have inas compared with 42 million in the same creased sharply over prewar levels. Indexes MARCH 1946 223 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REVIEW OF THE MONTH of the cost of building a standard house, com- were made to Congress for legislation. The piled by the Federal Home Loan Bank Ad- proposals are designed to encourage the ministration, show advances since 1940 of building of 2,500,000 new dwelling units durover 50 per cent for several large cities and ing the next two years and to make available less marked increases in other reporting 200,000 temporary units by re-use of Governcities, with an average rise of one-third. In ment-owned temporary war housing. This recent months the number of privately- housing, which would be held for veterans, financed dwelling units started in nonfarm would be financed with private funds and areas has been running at an annual rate of most of the houses would be built to sell for 420,000. While this is about four times as not more than $6,000 or to rent for not more large as in the same period a year ago, it is than $50 per month. considerably below the average of 536,000 Of the 1,000,000 new units which would units erected during the years 1939 to 1941. be started this year, 250,000 would be pre- In addition, during that period an average of fabricated, or made largely from prefabriabout 75,000 publicly-financed units per year cated parts, 50,000 would be trailers, and was erected as compared with almost none at 700,000 would be of conventional constructhe present time. tion, though using some new materials and Since autumn publicly-financed construc- techniques. Of the 1,500,000 new units tion, nonresidential as well as residential, has scheduled to be started next year, 600,000 been at the lowest level since 1933. During would be prefabricated and the remainder the war years Federal military and naval would be of conventional construction. installations accounted for a large part of Plans for expanding the output of buildpublic and total construction expenditures. ing materials are an important part of the Federally-financed industrial plant construcproposed program. These plans call for intion for war purposes was also on a large creasing output of conventional materials in scale; including equipment, it amounted to existing plants; converting unused war plants 17 billion dollars. The Surplus Property to the production of both conventional build- Administration estimates that 1,540 plants ing materials and new materials; and buildwhich cost about 11.2 billion dollars will ing new manufacturing capacity where neceseventually be declared surplus. At the end sary. This expansion would be accomplished of 1945, plants costing 2.6 billion dollars had by the use of Federal premium payments to been declared surplus, and of these, plants producers of building materials, Government costing 203 million had been either sold or purchase contracts for prefabricated units and leased for private operation. Availability of new materials, accelerated amortization of the plants still to be disposed of may reduce new plant for tax purposes, and Government the demand for the construction of new faccredit extensions to producers of materials. tories in the postwar period. In addition the plans call for the granting of wage-price adjustments or price increases PROPOSED NEW HOUSING PROGRAM where they are necessary and not inflationary. In view of the widespread shortage of suit- Production of prefabricated houses would able housing, especially for veterans' families, be encouraged, where necessary, by Federal a new Federal housing program has been de- contracts to purchase from qualified preveloped, and in February recommendations fabricators a specific number of units at a 224 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REVIEW OF THE MONTH specified price. The Government would sites. On existing houses the proposal made take delivery, however, of only those units is that while no restriction would be placed which were not sold through ordinary chan- on the price at which a first sale could be nels within a reasonable period. Any units made after adoption of the proposal, subthus acquired would be disposed of as sur- sequent sales could not be at a higher price plus property. than the first sale. To accomplish this two-year program the In the statement of the program it is esti- Congress has been requested to appropriate mated that about 1,500,000 workers, including 250 million dollars to finance the re-use those required at the site and in producing of temporary war housing, 400 million for and distributing industries, would need to be premium payments to producers of conven- recruited and trained. The number now so tional materials, and 200 million to encour- engaged is estimated at about 650,000. The age the production of new materials. The statement also indicates that it might be nec- Congress has also been requested to make essary for the Federal Government to aid in available Federal funds to stimulate private the provision of improved sites in some cases. research in new construction methods and materials. No estimates are given of the PRICE PROBLEMS IN CONSTRUCTION AND costs which would be incurred in the pur- REAL ESTATE chase of prefabricated houses, of the amount Demands are urgent not only for residenof new plant.for which rapid amortization tial facilities but also for additional manuwould be approved, or of the amount of facturing and commercial space, schools, loans which might be.extended to producers. hospitals, public utility expansions, and pub- The program also calls for legislative ac- lic improvements. Many factors contribute tion on several other points. Authority is to the strength of these demands, including asked for the Federal Housing Administra- the curtailment of building during the war, tion to insure builders' mortgages for as which prevented provision being made for much as 90 per cent of the necessary current increases and shifts in population, and the cost of low-priced houses for both sale and current high level of incomes of consumers rent; this is substantially the same as the and business units compared with prewar. wartime program of mortgage-insurance but Repair, maintenance and alteration of many differs from the ordinary peacetime program kinds of structures were also neglected durin that the latter permits the insurance of ing the war. In spite of the encouragement builders' mortgages for not more than 80 proposed for the production of building maper cent of the appraised value of the prop- terials and the recruitment of labor, the new erty. It is also requested that Federal au- housing program is so large that, if it is thority for control of the distribution of all to be successfully carried out, materials and building materials be extended to December labor will probably prove inadequate to meet 31, 1947. New legislation on two points is nonresidential construction demands. Fedasked for: enactment of the Wagner-Ellen- eral measures to curtail construction of meder-Taft Bill which contains a comprehen- dium and high-priced houses and many types sive peacetime housing program; and en- of nonresidential construction may be necesactment of a bill to permit control of the sary; already it has been announced that Fedprices of new and old houses and of building eral construction projects which compete MARCH 1946 225 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REVIEW OF THE MONTH with veterans' housing for labor and materials stimulating the production of materials by will be delayed. means of Government financial aid, and for The pressure of demand for space and fa- allocating materials for approved construccilities will make it both more necessary tion. Authority is also being requested and more difficult to control prices and costs. for control of the prices of new houses and Production of many building materials and of existing houses. components, such as lumber, brick, hard- The orderly expansion of construction and ware, and plumbing and heating equipment the attainment of a high, stable volume in was reduced considerably during the war the next few years depend in large measure period, and prices of most of these items on the stabilization of costs and prices at have increased appreciably above prewar reasonable levels, as well as on the maintelevels; the sharpest increases have taken place nance of incomes generally. In the present in lumber prices which are up 70 per cent situation this objective is difficult to achieve. or more at wholesale. As a result of higher The demand for space and facilities is exmaterial and wage costs and other factors ceptionally strong and materials and labor there has been a substantial rise in the cost are in short supply. Only as these conditions of construction. It appears that efficiency change or as controls operate effectively of operations has declined and also that can it be expected that costs of construction builders' margins have increased, partly as or real property values will stop advancing. protection against contingencies, but basic- Avoidance of any further broad advance in ally because of the strong demand for con- prices in the construction field is important struction. In the proposed housing program, to the success of the general program for as has been mentioned, provision is made for preventing inflationary price advances in the continuing price controls on materials, for economy as a whole. .226 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

THE FOREIGN LOAN POLICY OF THE UNITED STATES* 1. The foreign loan program of the United the private capital markets of member countries, States, by assisting in the restoration of the produc- particularly in the United States. However, since tive capacities of war-devastated countries and by this new institution will take time to develop a facilitating the sound economic development of lending program, it will probably not be in a posiother areas, is directed towards the creation of an tion to enter into more than a small volume of international economic environment permitting a commitments this year. large volume of trade among all nations. This 3. The proposed loan to Britain requiring conprogram is predicated on the view that a produc- gressional authorization is a special case, but one tive and peaceful world must be free from warring which is an integral part of the foreign economic economic blocs and from barriers which obstruct program of this Government. No other country the free flow of international trade and productive has the same crucial position in world trade as capital. Only by the re-establishment of high levels England. Because of 'the wide use of the pound of production and trade the world over can the sterling in world trade, the large proportion of United States be assured in future years of a sus- the world's trade which is carried on by the countained level of exports appropriate to the mainte- tries of the British Empire, and the extreme nance of high levels of domestic production and dependence of England upon imports, the financial employment. and commercial practices of Britain are of utmost By far the greatest part of the program of re- significance in determining what kind of world construction is being carried out with the re- economy we shall have. The early realization of sources of the war-devastated countries. UNRRA the full objectives of the Bretton Woods' program, takes care only of those immediate relief needs including the elimination of exchange restrictions which cannot be met out of the resources of the and other barriers to world trade and investment, countries involved. Another part of this program requires an immediate solution to Britain's finanis being carried out through sales of surplus prop- cial problem. The International Monetary Fund erty, such sales being made on credit terms or for Agreement permits the continued imposition of local foreign currencies where sales for cash pay- certain of these restrictions for as much as five ment in United States dollars can not be made. The years; in the Financial Agreement of December 6, rest of the job must be handled on a loan basis. 1945, the British agree to their removal within one 2. The International Bank will be the principal year from the effective date of that agreement. agency to make foreign loans for reconstruction It is the view of the Council that the British case and development which private capital can not is unique and will not be a precedent for a loan furnish on reasonable terms. It provides a means to any other country. by which the risks as well as the benefits from 4. In July 1945, the Congress, for the purpose international lending will be shared by all of its of making loans to war-devastated areas during members. It is expected that the International the period prior to the inauguration of the Inter- Bank will begin lending operations in the latter national Bank and for the promotion of American half of 1946 and that during the calendar year exports and other special purposes, increased the 1947 the International Bank will assume the primary lending power of the Export-Import Bank by 2.8 responsibility for meeting the world's international billion dollars, making its total lending power capital requirements that can not be met by private 3.5 billion. At the end of 1945, the Export-Iminvestors on their own account and risk. With its port Bank had outstanding commitments, includpresent membership, the International Bank will ing money authorized for cotton loans, of 1,560 be authorized to lend approximately 7.5 billion million dollars of which 1,040 million was comdollars. The bulk of the funds for the loans made mitted in the last half of 1945. The 1,040 million through the International Bank will be raised in dollars of the commitments made during the last half of 1945 consisted of: * This statement was formulated by the National Advisory Council on International Monetary and Financial Problems and (a) 655 million dollars for the purchase of presented to the President. On March 1, 1946, the President endorsed the recommendations of the Council and submitted the goods which originally had been included report to Congress for its information and consideration. MARCH 1946 227 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

THE FOREIGN LOAN POLICY OF THE UNITED STATES in the lend-lease programs to Belgium, Since the available funds of the Export-Import Netherlands, and France; Bank are about 2 billion dollars, it will be neces- (b) 165 million dollars for the purchase of sary in order to carry out this program to ask other goods and services necessary for the Congress to increase the lending authority of the reconstruction of Belgium, Denmark, Neth- Bank by 1% billion. Although this is a suberlands, and Norway; stantial increase, the Council believes that it is a minimum figure. (c) 100 million dollars available to various European countries including Finland, Bel- It is only through careful screening that it will gium, Czechoslovakia, France, Italy, Nether- be possible to carry out the program within the lands, and Poland for the purchase of raw limits of the additional funds which the Congress cotton, and will be asked to make available to the Bank. It is the established policy of the United States (d) 120 million dollars for specific export and Government carefully to scrutinize each loan apdevelopment programs, mostly to Latin plication to determine that the need is urgent American countries. and that the funds can be obtained from no other source than the Export-Import Bank. On January 1, 1946, the Export-Import Bank had unused lending power of 1.9 billion dollars for 7. On balance the loan program will be benemaking additional commitments. In addition to ficial to our domestic economy. In the transition the 1.9 billion dollars, there will be available during from war to peace, expanded foreign trade will not only assist the reconstruction of foreign counthe fiscal year 1947 about 50 million from repaytries, but also ease the reconversion problem of ment of principal and an additional sum (possibly a number of domestic industries. 100 million) from the cancellation of earlier commitments. During the war many of our important industries, particularly in the field of capital goods, 5. Pending the effective operation of the Interwere built up to capacities far in excess of any national Bank, it has been the policy of this Govforeseeable peacetime domestic demands. With ernment to limit loans through the Export-Import the elimination of war demands, much of this Bank for reconstruction and development to the American productive capacity may be unused. immediate, minimum needs of the borrower. Such a situation has already arisen, for instance, Among the factors taken into consideration in makwith reference to railroad equipment, machine ing loans of this character are: (1) the urgency tools, power and transmission equipment, and of the need of the borrower; (2) the borrower's certain types of general industrial machinery. This own resources; (3) the possibility of obtaining is also true for some of the metals, heavy chemithe loan from other sources: private capital markets cals, synthetic rubber, and other industrial materiand other governments; (4) the ability of the als. Similarly, we have quantities of cotton, toborrower to make effective use of the funds; bacco and other agricultural products which are (5) the capacity of the borrower to repay; and surplus to domestic needs. It is fortunate that (6) the impact of the loan on our domestic this excess productive capacity is for many items economy. which are most urgently needed by the war devas- 6. It is the view of the Council that, pending tated countries. the establishment and operation of the International Bank, this Government can meet only a small However, a part of the foreign demand will fall proportion of the undoubtedly large needs of on products which are at present scarce in Ameriforeign countries for credits for reconstruction and can markets. The Department of Commerce estidevelopment. mates that perhaps one-fourth of the proceeds of After careful consideration of all factors, the foreign loans will be spent on such products. In Council has concluded that the most urgent foreign these cases the export demand, although small in needs will involve negotiations for loan commit- relation to current domestic demand, contributes ments by the Export-Import Bank of approxi- to inflationary pressures in the United States econmately 3% billion dollars in the period from omy, and allocation and export controls must be January 1946 through June 1947. This is ex- maintained in order both to prevent any undue clusive of the proposed credit to Britain. drain on domestic supplies and to assure that the 228 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

THE FOREIGN LOAN POLICY OF THE UNITED STATES minimum essential needs of other countries are an export surplus sufficient to meet service charges met. on foreign loans will depend in large measure In this connection, account must be taken upon the level of world trade. A high level not only of the fact that there is an inevitable of world trade will in turn depend upon the delay in the spending of the loans but also that maintenance of a high level of world income the Export-Import Bank discourages the employ- and a reduction of the barriers to international ment of loan proceeds for the purchase of com- trade which have grown up in the past. A high modities in scarce supply. It is also the policy level of world income, and of national income in of the Government to prevent the proceeds of the United States, will be greatly influenced by the loans from being used to purchase goods in the domestic economic policies of the United States United States market when similar supplies are and of other major countries. It is expected that for sale as surplus property. the proposed International Trade Organization will The figure of 3% billion dollars in require- play an important role in securing the international ments through the fiscal year 1947 represents antici- economic environment necessary for the maintepated commitments and not amounts which will nance of high levels of world trade. The operabe actually loaned or spent. For example, on tion of the International Monetary Fund should January 1, 1946, the net outstanding loans of the assure the orderly functioning of a system of multi- Export-Import Bank amounted to only 252 million lateral payments, and this will make it possible for dollars although the total amount committed was debtor countries to convert their export surplus 1.6 billion. In order to permit foreign govern- with any country into the currency in which their ments to plan their import programs and to permit obligations must be discharged. United States producers to schedule their produc- 9. Fundamentally, however, the ability of foreign tion, loan commitments by the Export-Import Bank countries to transfer interest and amortization on must be made well in advance of actual use of foreign loans to the United States depends upon loan funds. the extent to which we make dollars available In view of these considerations, it is believed to the world through imports of goods and services, that a foreign lending program adequate to meet including personal remittances and tourist expendithe minimum needs of foreign countries will tures, and through new investments abroad. As provide additional production and employment in a last resort, the world outside of the United many American industries, and that any temporary States has a current gold production of possibly sacrifice involved in other areas of the economy 1 billion dollars per year to add to their present will be small compared to the long-range advan- foreign exchange reserves, which can be dipped tages to the United States of a peaceful, active, into to insure payment. and growing world economy. As long as new American investment exceeds 8. A basic question to be considered is whether interest and amortization on outstanding foreign at a later period foreign countries will be able investment, the question of net repayment on our to service large American loans and investments. total foreign investment will not arise, although There is little doubt regarding the ability of debtor as individual investments are paid of? the composicountries after their economies have been fully tion of our foreign investment may shift. It is reconstructed to increase their national income impossible to prophesy when receipts on foreign insufficiently to handle the service charges on Ameri- vestment will exceed new investment, as American can loans and investments, providing an undue investment abroad will depend on many future part of national income of borrowing countries developments. In a world of peace, prosperity, and is not diverted to military expenditures. This a liberal trade policy, there may well be a revival increase can be brought about through the modern- and continuation of American private investment ization of economically backward areas, increased on a large scale, including a reinvestment of the employment, and the utilization of new productive profits of industry, that will put the period of net techniques, and well-directed foreign loans will repayment far in the future. Such an increase make an important contribution to this develop- of investment is a natural and wholesome development. ment for a wealthy community. The ability of borrowing countries to develop When net repayment begins, whether this be MARCH 1946 229 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

THE FOREIGN LOAN POLICY OF THE UNITED STATES a few years or many decades from now, it will of our population and the depletion of our natural involve an excess of imports of goods and services resources and the increase in our standard of liv- (including foreign travel by Americans) over our ing will increase the need for imported products, total exports of goods and services. The growth and these developments together with the mainte- EXPORT-IMPORT BANK OF WASHINGTON LOANS AUTHORIZED BY EXPORT-IMPORT BANK SUBSEQUENT TO JUNE 30, 1945 [AS OF DECEMBER 31, 1945] Amount of Country and Obligor Au D th a o t r e iz o a f tion Au ( t I h n o r M iz i a ll t i i o o n n s Purpose of Dollars) Latin America: Brazil Lloyd Brasileiro 9/11/45 38.0 Purchase of Cargo Vessels Chile Chilean State Railways 7/13/45 1.2 Purchase of Locomotives (Baldwin Locomotive Works) Chilean State Railways 7/13/45 2.0 Purchase of Electrical Equipment (Electrical Export Corp.) Fomento Corporation 9/11/45 28.0 Purchase of Steel Mill Equipment Fomento Corporation 5.0 Purchase of Electrical and Other Equipment Ecuador 9/11/45 Republic of Ecuador 1.0 Purchase of Engineering Services Mexico 7/13/45 United States of Mexico* 10.0 Highway Construction, Equipment and 3/21/45 Services Nacional Financiera* 3/21/45 20.0 Purchase of Electrical Equipment Fred Leighton 10/23/45 .15 Import of Mexican Handicraft Peru Cia. Peruana del Santa* 6/12/45 Purchase of Electrical Equipment (Westinghouse Electric Int'l. Co.) .35 TOTAL LATIN AMERICA 105.7 Europe: Belgium Kingdom of Belgium. . 9/11/45 55.0 Purchase of United States Goods and Services (Lend-Lease 3-c terms) Kingdom of Belgium.... 9/11/45 45.0 Purchase of United States Goods and Services Denmark Kingdom of Denmark. . . 7/13/45 20.0 Purchase of United States Goods and Services France Republic of France.... 9/11/45 550.0 Purchase of United States Goods and Services (Lend-Lease 3-c terms) Netherlands 9/11/45 50.0 Purchase of United States Goods and Serv- Kingdom of the Netherlands ices (Lend-Lease 3-c terms) 9/11/45 50.0 Purchase of United States Goods and Kingdom of the Netherlands Services Norway 7/13/45 50.0 Purchase of United States Goods and Kingdom of Norway Services Various European Countries Various European Governments. . . 10/ 8/45 100. 0 Purchase of Raw Cotton TOTAL EUROPE 920. 0 Asia: Saudi Arabia Kingdom of Saudi Arabia* 4/12/45 , 5.0 Purchase of Goods and Services Turkey •Turkish State Airways 9/11/45 3. 06 Purchase of Airport Equipment (Westinghouse Elec. Int'l. Co.) TOTAL ASIA 8.06 Various Countries: Governments of Various Countries. 9/11/45 5.0 Purchase of Communications Equipment (Int'l. Standard Electric Corp.) Special Exporter-Importer Credits... 9/11/45 1.0 Various GRAND TOTAL 1, 039. 76 Undisbursed commitments as of June 30, 1945 (adjusted for expirations and cancellations up to December 31, 1945) 326.46 Outstanding loans as of June 30, 1945 (adjusted for repayments between June 30, 1945 and December 31, 1945) 193.43 TOTAL COMMITMENTS AS OF DEC. 31, 1945. 1,559.65 * Credits authorized before June 30, 1945, but not entered on the books of the Bank as commitments until after that date. 230 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

THE FOREIGN LOAN POLICY OF THE UNITED STATES . nance of a high and stable level of employment ernors of the Federal Reserve System, and the will facilitate this adjustment. The annual in- Chairman of the Board of Directors of the Exportterest and amortization payments on the entire Import Bank, has the responsibility of coordinating present and contemplated Export-Import Bank pro- the lending and credit programs of this Governgram, the British Loan, and the International Bank ment, and of achieving maximum consistency beloans floated in United States markets will be less tween American Government lending and the than 1 billion dollars. The receipt of payments on lending operations of the International Bank. our foreign loans in the form of goods and services This country is supporting the United Nations is entirely consistent with increased exports from Organization wholeheartedly, and the success of this country and rising production at home, and the United Nations Organization depends not will contribute to a rising living standard in the only on political agreement but also on economic United States in the same way that a private in- improvement. These loans are for economic redividual's earnings on his investments make pos- construction and development. They will enable sible an increase in his own living standard. the borrowing countries to increase their own pro- 10. The loan policies stated here are in full duction, relieve their foreign trade from excesaccord with the basic political and economic in- sive regulation, and expand their trade with us. terests of the United States. The National Ad- Economic reconstruction will foster political stavisory Council, which was established by the bility, and political stability will foster peace. This Congress in the Bretton _Woods Agreement Act program of foreign lending is essential to the and consists of the Secretary of the Treasury as realization of the main objective of the foreign Chairman, the Secretary of State, the Secretary of economic policy of the United States, which is to Commerce, the Chairman of the Board of Gov- lay the economic foundations of the peace. MARCH 1946 231 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

THE BRITISH LOAN by MARRINER S. ECCLES Chairman of the Board of Governors of the Federal Reserve System* It is especially gratifying to me to have this We do not need to look twice at the war-torn opportunity today to speak to you on the proposed world around us to realize what a tremendous job British loan, which is an integral part of the it will be to restore that world to peaceful and prosgravest problem with which the world is faced perous ways. We do not have to think twice about today—the problem of making certain this time recent history and the two World Wars which have that a lasting peace emerges from the ruins of a fallen on us within a generation to realize how World War. It is particularly fitting that' you here vitally important this objective is to every one of in Philadelphia should give your most earnest us. The world can not be brought back to the attention to what is close to your deepest interests, paths of peace and economic welfare without your traditions, and the aspiration betokened by the strong, courageous leadership. Throughout the name of this city for attainment of brotherly love. world this country is looked to for that leadership. I take it that this aspiration is not bounded by the This country has a plan for economic peace. It city limits or even by our national shore lines, but is to the everlasting credit of this Government that extends to all mankind. It is no overstatement, I in the midst of the most devastating of all wars it think, to say that the decisions which must be made nonetheless found energies to devote toward in shaping the peace profoundly affect all our planning for the peace. We have given the world destinies here as deeply as the decisions of the leadership by developing, in cooperation with our Founding Fathers who met here and so largely Allies, a positive program for economic recovery shaped the destiny of this Nation. The fame they and reconstruction. We have taken two major rightly earned for their ability to think and act steps toward laying the groundwork for a prosboldly has not been tarnished by any narrowness of perous world economy. vision or provincial outlook on the part of those The first was the Bretton Woods financial prowho have come after them in this city. To an posals which were worked- out at an international interested outsider, it has seemed that the high conference summoned more than a year ago at the level of discussion and opinion in this environment initiative of the United States. The second is the has long been worthy of the past and gives added proposals on international trade and related hope for the future. matters which have been put forward by the The President of the United States has placed United States as the basis for discussion in interbefore the Congress a set of proposals designed to national conferences during the coming year. establish our future economic and financial These two sets of proposals, one in the financial relationships with the British Empire. Their most and one in the trade sphere, complement each notable feature is a large dollar loan to help the other. Both have a common objective: the develop- British to help themselves in surmounting the ment of "rules of the game" for international difficulties which face them as a result of the war. economic affairs. The Bretton Woods Monetary These proposals are the result of long and pains- Fund aims at the abandonment of artificial extaking negotiations with representatives of the change restrictions and creates machinery for deal- British Government in which I had the honor to ing with international exchange rates. The United participate. I was invited to come here today to States' proposals on commercial policy seek to tell you why I believe they represent a fair and eliminate unfair trade practices and other barriers honorable bargain; why they serve the interests of to international commerce. the United States; in fact, why they are an essential What are the prospects for getting the kind of step on the road to world peace and prosperity, and, an economic world envisioned in these proposals? therefore, why they should be adopted. The outlook is indeed black unless we in the * An address delivered before the Foreign Policy Association, United States are prepared to do more than preach in Philadelphia, on Feb. 9, 1946. 232 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

THE BRITISH LOAN about world peace and prosperity. We must be However, this increase is, by its terms, selfwilling to back up our preachments with practical, liquidating. The foreign borrowers will in effect cooperative proposals such as the British loan and assume the burden of this increase in our expendithe ones I have just mentioned. tures by making interest and amortization pay- We all know what a desperate state the world ments on their loans. We must recognize also that is in today. Great areas in Europe and the Far the expenditure of the proceeds of the loans in this East have been left prostrate by the war. Masses country can not be entirely welcomed at the present of people in the world are hungry, not just for time. Many of these purchases will be made for food (and for every other kind of goods), but also products of which we will have an adequate, or for employment and for social and economic peace. even a surplus, supply, but inevitably other pur- Bread, work, and peace! Enlightened leadership chases will be for goods that are, for the time being must provide these essentials of a decent life at least, in short supply, and to that extent such through reasonable and humane international purchases add to inflationary pressures. arrangements, or desperate peoples will inevitably So we must face up to the alternatives. We must yield to the glib promises of ambitious revolution- weigh the advantages to the United States of a ists, losing their liberties in the hope of gaining contribution to world stability against the costs economic security. which such a contribution imposes on us at home. We need an orderly economic recovery in the No American doubts that we ought to make some world for the sake of political stability and social contribution in money and in goods to the relief order. Poverty breeds international rivalries and and reconstruction of the shattered world. At conflicts. In times like these, distressed nations are one end of the scale we have UNRRA to which by tempted to make full use of every bargaining power common consent we are donating large amounts of and weapon that can be brought to hand. Unless money and goods in order to provide emergency a positive program for regulating international relief for destitute peoples. We all recognize the economic relations is widely accepted, trading necessity for this, despite the drain which the relations can easily degenerate into a ruthless UNRRA procurement program may exert on some struggle for existence. An undeclared state of of our domestic markets. At the other end of the economic warfare might rapidly develop among scale, there are all kinds of grandiose projects which the world's leading nations and economic blocs. In foreign countries would like to undertake with such an atmosphere there would be no hope for the assistance from this country, but which are beyond United Nations Organization in bringing about a our ability to provide and would not be in our inlasting peace. terest to undertake. In between, however, lies a In a very real sense, therefore, the Bretton Woods range of loan propositions of varying degrees of Agreements and the United States' proposals on urgency and importance. These must be examined commercial policy constitute treaties of economic case by case with a view to making a determination peace. At the present time, however, many coun- based on our ability and our national interest. This tries can not afford to adhere to these treaties unless was my approach to the British problem in the they receive some external assistance. In particular recent negotiations. Our proposed action in the this is true of countries that suffered most from the specific British case must be judged in the light of destruction of the war and have little or no capacity its importance to the success of our whole foreign to earn foreign exchange through exports until economic policy. they have been rehabilitated. Such countries must The British case is unique. More than any other be given an opportunity to work their way out country in the world Britain is dependent for her peacefully and avoid social and economic chaos. existence upon foreign trade. She is the world's The only satisfactory way out is through long-term largest importer and the pound sterling, after the credits, and our country stands almost alone in the dollar, is by far the most important currency in world in being able to grant these credits and world trade. British trade and exchange practices, thereby supply essential goods. therefore, have an immense influence on all of the Against these reasons for our extending aid to markets of the world. The construction of a liberal foreign countries we must weigh the pressures on world trading system along the lines desired by the our own domestic economy. We can not ignore the United States would be virtually impossible withfact that such aid through Government channels out British collaboration. To my mind, therefore, necessitates an increase in public expenditures. the basic justification for the loan is that it would MARCH 1946 233 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

THE BRITISH LOAN make it possible for Britain to join with us in laying The war brought about a radical change in the foundation for economic peace. Britain's international investment position. Once Now, let's look a little closer at the British case the largest creditor country in the world, she has to see why Britain needs the proposed sum of been reduced to a net debtor through her $3,750,000,000 to carry her through the postwar prosecution of the war. In order to pay for imperiod. She was getting along before the war. ports and for her large military expenditures abroad, Living on her capital a little, perhaps, but a coun- she has liquidated nearly 5 billion dollars worth of try with very great resources measured by peacetime foreign assets since 1939 and has incurred foreign standards. However, Britain has just emerged debts of more than 12 billion dollars. from six years of life-and-death struggle in which Quite naturally, the British have argued that they she has been forced to make tremendous human deserve our assistance in digging out of their and material sacrifices. As a result, she faces difficulties as much as in fighting the war itself. enormously difficult problems. They were hopeful that we would help them The war has gravely crippled Britain's means of through the postwar transition period on someinternational trade on which her livelihood de- thing like Lend-Lease terms—that we would view pends. The British Isles are a great workshop the help as part of our share in the cost of the which must import large quantities of food and common victory over the enemy and in constructing raw materials merely to exist. Before the war the the peace. We on the U. S. side have agreed to British paid for these imports partly through ex- deal on this basis in settling for Lend-Lease ports, partly through the provision of shipping and supplies consumed in the prosecution of the war. other services to the world, and partly by drawing But postwar assistance, we have felt, should be income from large foreign investments built up extended on a self-liquidating basis. We were through centuries of effort by the British people. impressed by Britain's sacrifice, but we felt that Today the import requirements persist despite the the provision of new money had to be based on austere level of British living standards. But what future rather than past considerations and, therehas happened to Britain's capacity to pay? fore could not be a gift but must be a loan, to be In the first place, her export trade is almost gone repaid over a period of years and bearing interest and must largely be rebuilt. -Why? Primarily at a rate sufficient to cover approximately the cost because Britain has concentrated her energies so of the money to the United States Treasury. The fully on the war. Production for war was given American attitude was summed up by Lord Keynes priority over production for export, except where in the speech which he delivered in the House of exports served to bolster the war eflort of Allied Lords last December. "We soon discovered," he countries. We were partners in this conversion of told his countrymen, "that it was not our past the. British workshop to war purposes. We made performance or our present weakness, but our large supplies available to Britain on Lend-Lease. future prospects of recovery and our intention to We, of course, did not insist on repayment in face the world boldly that we had to demonstrate. British goods at the expense of her war production. Our American friends were interested not in our But when the flow of Lend-Lease supplies was wounds though incurred in the common cause, but abruptly terminated at the end of the war, this in our convalescence. To help that forward infruitful partnership was dissolved. The main terests them much more than to comfort a war burden of provisioning the British Isles had to be victim. taken over by British exports, which were reduced When this basic question of a loan was decided in 1944 to only 30 per cent of the prewar level. upon, and when agreement was reached on firm This burden is manageable in time, but it may be commitments by the British with regard to their three or four years before Britain can sufficiently trade and exchange policies, the final step was to restore her export trade to enable her again to he determine how large a loan was necessary to do the self-supporting. job. How much foreign exchange would the Britain will also resume her place in time as a British need to meet urgent expenditures during great provider of shipping, insurance, and banking the period when they were getting back on their services to the world. But these activities, too, have feet? How much would they need to pay foreign been shattered by the war. British shipping in countries supplying the British market in sterling particular suffered tremendous war losses. fully convertible into dollars and other currencies 234 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

THE BRITISH LOAN rather than in frozen funds? How much of this surpluses in order to assist the world in recovering foreign exchange could they still draw from their from the wreckage of war. But let's not lose sight own resources? How much of the load could be of the reasons which justify this action. Above all, carried by other countries (Canada, for example), let's not make the mistake of thinking that lending and what amount needed to be raised in the United money to finance exports is the way to take care of States if the job was to be done? All these factors unemployment when it develops. We shall deceive were closely examined. This figure of $3,750,000,000 ourselves if we imagine that we can continuously was not picked out of the air. It represents the sell abroad more than we buy. By accepting gold careful judgment of our negotiators as to the (of which we already have an abundance) or minimum amount the British need from us to work promises to pay, we can, of course, delude ourtheir way out of the present situation, while at the selves for a time into thinking that our foreign same time they continue to subject themselves to an trade is on a solid and lasting basis. We get emaustere standard of living at home. The proposed ployment, yes, while the money is being spent, but loan amounts to what we spent in only two weeks <the fruits of that employment are lost to us of fighting a war of death and destruction. In permanently if we persist in refusing to take goods contrast, it seems little enough to loan in the in- and services from foreign countries to enable them terest of peace. to service and repay their debts. If we desire to Moreover, this loan is to meet Britain's minimum maintain a thriving export business and receive import needs and not to pay off her other creditors. service on our investments abroad, we must make As I mentioned before, as a result of her war pur- the exchange of goods and services a two-way chases abroad, Britain owes some 12 billion street. In the end, responsibility for making it dollars. About half of this is owed to India and possible for our debtors to pay is ours, and ours countries of the Middle East where the British had alone. to finance heavy military expenditures during the We should never forget that this country does war. She plans to negotiate settlements on these not have unlimited natural resources. We have debts involving cancellation of part and repayment been exploiting our mines, our forests, our oil of the rest over a long period of years. Our loan reserves, at a rapid rate. It is bad enough if we agreement with Britain provides that she must squander these resources in supporting ourselves at settle these debts out of resources other than our home. It is much worse if we dissipate them by line of credit. pushing them out in exports and fail to provide for If we make the loan, what of its future? Can repayment. As we look for ways to restore our the British repay it? Can Britain and other balance of international trade, we should devote foreign countries which share in our emergency special attention to the possibility of replenishing postwar lending program live up to their obliga- our reserves of scarce or irreplaceable raw matetions ? rials by drawing upon the resources of the outside The answer is that they can repay if world trade world. is restored to a healthy basis and if we in this There are some, as you know, who will let past country take the lead in maintaining a high level grievances blind them to all reasons for granting of production and employment. They can't repay this help to the British people—who remember if the world breaks up in warring economic blocs only the worst and forget what the finest British or falls into another severe world depression. The character has contributed through the centuries to essence of these loans is to create the conditions the institutions of free men and the liberation of under which they can be repaid. the human spirit—who even now forget how this Loans, however, are not enough. The restoration ancient, hardy people so recently stood alone of a healthy world trade also depends on whether through the long, dark night, the only barrier bewe in this country learn how to administer our tween this country and the onrush of the Axis international economic affairs. There is an old, powers over peoples less resolute. The good sense but often forgotten, axiom—that we can not forever of the American people will not let these dissenting export more than we import. This year—perhaps voices prevail, if for no other reason than that our for several years—we face an emergency situation. Nation can not afford, in its own long-run interest, During this period we must plan for large export to refuse the help. MARCH 1946 235 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF BOARD ON PENDING LEGISLATION ON HOUSING DEAR SENATOR WAGNER: same time, incomes have never been so high as in the past few years, and never before has the general On behalf of the Board I am enclosing two public had available such tremendous amounts of statements with regard to S. 1592 now pending cash and readily convertible assets. When credit before your Committee. Because of the Federal is required, borrowers have been able to obtain Reserve System's responsibilities in the broad field increasingly easy mortgage terms from banks and of credit, we desired to set forth the reasons why other lenders who, having ample funds, are eager we feel it would be desirable to reconsider certain to supplement their Government security holdings provisions, particularly the proposal contained in with higher yield investments. A ready availability the legislation to provide easier credit terms on new of cash resources has thus combined with the unhousing in the lowest price ranges. While the precedented need for houses to bring about the Board is in entire sympathy with the stated objecinflationary situation in the housing field. tives of the bill and is in accord with many of its To add to this dangerous pressure at this time provisions, it is our judgment that its enactment without revision would add to already serious by a still further easing of credit terms would make inflationary pressures. the inflationary danger all the greater without providing any new supplies whatever of houses on One of the enclosed statements deals with the the market. The difficulty lies not in credit terms, easy credit proposals. The other statement deals which have been reduced substantially in the past with various provisions of the measure to which decade, but in the immediate and prospective we have previously expressed objection. We would shortages of building materials of various kinds appreciate having these statements made a part of the official record of the hearings before your and of manpower. Any realistic attack on , the Committee. problem must look to remedies for these shortages as well as to solutions of the special difficulties Sincerely yours, created by antiquated building codes, by (Signed) M. S. ECCLES. Chairman. monopolistic practices affecting building materials Enclosures 2 as well as the building trades, by jurisdictional conflicts, and by similar restrictions which make INFLATIONARY DANGERS IN TITLE IV OF S. 1592 for inadequate construction at excessive cost. Section 402 of S. 1592 would amend Section 203 Availability of credit is thus not the factor which of the National Housing Act so as to permit the limits additions to the supply of housing, and may Federal Housing Administration to insure loans not be for some years to come. While materials for as much as 95 per cent of the value of the and manpower are short, further liberalization of property, the loans to run for 32 years, at 4 per credit terms would merely add to inflationary cent interest. Such insured mortgages would be pressures. Whether further easing of credit terms available only on houses built under FHA inspec- would be desirable at some future time when the tion, and would not exceed $5,000. demand for housing is not in excess of the supply This section is proposed as part of a long-range of manpower and materials is another question, Federal housing policy, but its enactment now or in and one which should be considered in the light the near future would strengthen the serious in- of conditions then. Certainly at this time it would flationary pressures in the housing market. It be illusory and misleading to the general public to would not contribute to meeting the immediate enact legislation which in effect would serve only to need for both an increased supply of houses and intensify the demand factor without adding anybetter housing for families of low income. thing whatsoever to the supply side of the equation. The housing crisis is typical of the inflation If it is desired to increase the proportion of houses problem generally. It is due to the fact that the built in the lowest price ranges, action along lines demand vastly exceeds the supply. There is a large of material allocation would appear to hold more accumulated shortage of housing units. At the promise. 236 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF BOARD ON PENDING LEGISLATION ON HOUSING COMMENTS REGARDING TITLE III OF S. 1592 lation, has imposed severe restrictions on the rental housing loans which they may make. It has Sections 301 and 302 limited such loans to 50 per cent of appraised Section 301 would authorize Federal savings and value, except in the case of small apartments (5 to loan associations to lend or invest their funds in 12 families) for which the limit is 60 per cent, any mortgage or obligation which is insured under even though they are insured under the National Title I or Title II of the National Housing Act, as Housing Act. amended. This would change existing law in two For these reasons, the blanket authorization of important respects. It would permit such an asso- Federal savings and loan associations to lend any ciation to make loans on homes located more than amount anywhere on insured mortgages, which is fifty miles from its home office, and permit it to contemplated by section 301 (and the corresponding participate in the financing of large-scale rental provisions in section 302), should not be enacted. housing, without regard to the limitation which Section 303 now restricts the aggregate of such loans to 15 per cent of the assets of the association. The purpose of section 303 is to increase the These provisions should not be enacted. Savings amount of money which the Federal Home Loan and loan associations have traditionally been local Banks may borrow in the money market by widenthrift and home financing institutions, gathering ing the range of Bank assets on the basis of which investment funds of individuals from the local debentures may be issued. The law as it now community and lending them out to home owners stands restricts the amount of debentures which the and prospective home owners within the local System may issue to the amount of advances to community. This is clearly the basic function members secured by loans of the types prescribed by which Congress intended Federal savings and loan Congress in section 10(a) of the Federal Home associations to perform, although it permitted them, Loan Bank Act. Thus, the power of the Home as a matter of operating flexibility and to meet un- Loan Banks to obtain funds in the money market usual situations, to engage in other lending activities is geared to the volume of the advances to the within well-defined limits. member institutions secured by loans of the best This element of flexibility is proper and useful, type, namely, loans which qualify under secbut if operations now permitted as exceptions to tion 10(a). It seems obvious that the present the rule should become the general rule, the basic provision furnishes the Home Loan Bank System function described above would be fundamentally with borrowing capacity more than adequate to altered. Therefore, the loans made on properties enable member institutions to meet the demand for outside the association's locality (i.e., beyond 50 such loans in communities where share accounts miles) should remain within the 15-per-cent-of- are insufficient. Within the limitation which assets limitation. relates debentures to capital, the Home Loan banks Furthermore the financing of large-scale rental can now issue debentures on a one-for-one basis for housing should continue to be subject to the the entire amount of 10(a) loans rediscounted. In 15-per-cent-of-assets limitation. Such financing is what way could a demand arise which could not be essentially different from the financing of homes met under the present provision? Only if member for owners and prospective owners. The borrower, institutions should wish to rediscount other types in the case of rental housing, is not a home owner. of paper (or obtain unsecured advances) in con- He is an investor in a business enterprise just as siderable volume. Such other paper would include is the hotel owner. Thus, the financing of large- mortgage^ loans on business properties, apartment scale rental housing is essentially business financing, houses, and other non-home properties, as well as which it was never contemplated savings and loan loans made on the security of share accounts. It associations would undertake. The Federal Home seems apparent that Congress did not intend that Loan Bank Board has, we think quite properly, such paper should form the basis for obtaining recognized this fact because, although the present additional funds in the market. With the possible law would permit Federal savings and loan asso- exception of loans on the security of share accounts, ciations to make any non-home loan within the this is a type of financing that should be held within 15-per-cent-of-assets limitation, the Board, by regu- the 15-per-cent-of-assets limitation, as already MARCH 1946 237 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF BOARD ON PENDING LEGISLATION ON HOUSING pointed out herein, and therefore that should not to meet demands for share withdrawals—an operbe encouraged by giving such paper, when dis- ation which is clearly inconsistent with the nature counted at a Home Loan bank, the same access to of share accounts and the uniform charter promarket funds as is enjoyed by 10(a) paper. In visions of Federal associations governing withfact, the power to include such other paper in the drawals. debenture base would have the inevitable effect of Section 303 is therefore open to objection on the eliminating the relative desirability of loans under following principal grounds: first, because it would section 10(a) which are clearly the most appro- broaden the base for debentures in such a manner priate type of loan for mutual thrift and home as to encourage lending by member institutions financing institutions. of types which are inappropriate for local mutual The proposed amendment would also include thrift and home financing institutions; second, in the debenture base of the System all Government because, by including paper not conforming to obligations owned directly by the Federal Home section 10(a) as well as Government obligations Loan banks. This provision would permit Gov- owned directly by the Federal Home Loan banks, ernment obligations, including those held as part whether as part of their reserves or not, it would of the Banks' reserves, to be counted in the make available to the banks far more funds than debenture base. they need in order to perform their functions; and The present law in our opinion is over-generous third, because it is desirable that the reserves of the in providing that required reserves may be in- Federal Home Loan banks, which are already vested in earning assets (the reserves of commercial invested in earning assets, should not be used as a banks and those of the Federal Reserve Banks may basis for further generation of credit. not be in earning assets) and the proposed amend- The argument which has been advanced that ment would go even further by allowing the the Federal Home Loan banks have not parreserves to be again multiplied by forming a base ticipated as fully in the financing of the war as they for the issuance of debentures. would if Government obligations could be included There is nothing in the present law which re- in the debenture base, is not convincing. The stricts the power of the System to raise money to Treasury has said repeatedly that it does not want perform the functions it was established to per- institutions to borrow money in order to purchase form, namely, to provide a reservoir of funds on Government bonds. which member institutions can draw when the de- Section 306 mand for sound home mortgage loans in their communities exceeds the amount of share investment. The reserve which Congress has said should Without issuing debentures, the Banks can make some day reach 5 per cent of the Federal Savings advances out of their own capital, as well as from and Loan Insurance Corporation's insured risk was, deposits they may have from member institutions on June 30, 1944, after 10 years of operation, only which have more share capital than mortgage 0.57 per cent of the insured risk. Section 306 loans. When demands on the Banks exceed these would reduce the insurance premium due from resources, the System may borrow from the money insured institutions by one-third, and would conmarket the entire amount of section 10(a) advances sequently slow down the rate at which the reserve from the Banks to their members. is accumulated. In a period when losses were high, Bearing in mind that Federal savings and loan the reserve would be sadly deficient. associations are forbidden by law to accept deposits It might be argued that the right to assess and that the holder of a share in such an institution insured institutions for losses and operating exshould not expect the same liquidity as the owner penses could be used to meet larger losses, but of a deposit in a commercial bank, it seems obvious apart from the fact that the Corporation has never that the Federal Home Loan banks should not yet used this power of assessment, it is doubtful need to raise funds on the basis of assets other than that assessments after large losses have started loans of the types described in section 10(a) of the would be effective in yielding the amount of Federal Home Loan Bank Act. The most likely revenue that would be required (since the amount use for such funds would be to make unsecured of assessment for any one year is limited) or could,, advances to member institutions to enable them in such a period of widespread strain, be con- 238 FEDERAL RESERVE BULLETIN: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF BOARD ON PENDING LEGISLATION ON HOUSING veniently paid by the institutions. Indeed, it is capital accounts of institutions insured by the contrary to all insurance principles to attempt to FDIC amounted, in 1943, to 20 per cent of the assess the insured after the risk insured against has insured deposits, while the capital accounts of materialized. institutions insured by the Federal Savings and One of the arguments advanced in support of Loan Insurance Corporation amounted to only this proposal in previous years was that the risk about 9 per cent of its insured accounts. In other insured by the Federal Savings and Loan Insurance words, a comparison on this basis, without taking Corporation is about the same as that insured by into account the cash and United States Governthe Federal Deposit Insurance Corporation, and ment securities which would tend to reduce the that therefore the premiums should be similar. risk, would show that the cushion in the case of However, the risk is far from being the same. the FDIC is over twice as great as in the case of the In the first place, banks insured by the FDIC as Federal Savings and Loan Insurance Corporation. of June 30, 1945, had cash and United States Gov- Finally, the difference is further accentuated by ernment securities totaling 112 billion dollars as the fact that, whereas virtually all of the share against total deposits of 134 billion, leaving accounts and deposits of the institutions insured by a balance of 22 billion as the only part of the Federal Savings and Loan Insurance Cortheir deposits involving risk of loss to the FDIC. poration are covered by insurance, only about 38 Capital accounts (capital, surplus, undivided profits per cent of the total deposit liabilities of insured and reserves) totaled 8 billion dollars. The ratio banks are insured by the FDIC (its Annual Report of capital accounts to these remaining deposits was for 1943 indicates that 36 billion are insured out therefore 1 to 2.7. By comparison, institutions in- of a total of 94 billion). This means that the efsured by the Federal Savings and Loan Insurance fective premium rate of the FDIC is approximately Corporation, as of December 31, 1944, had cash Y of one per cent of insured deposits. Con- 5 and United States Government securities totaling sequently, even if the other factors were equal, the 1.5 billion dollars as against total private repur- rate for the Federal Savings and Loan Insurance chasable capital (shares), including deposits and Corporation should be raised instead of lowered investment certificates of 4 billion dollars, leaving in order to make it comparable with that of the a balance of 3 billion. The undivided profits FDIC. and reserves of the insured institutions amounted to The Federal Savings and Loan Insurance Corapproximately 0.36 billion dollars, a ratio of 1 to 8. poration has 100 million dollars of Government- On this basis, the cushion provided by the capital furnished money. This is, in effect, a subsidy. At accounts of institutions insured by the FDIC is the present time, when the national debt is so great three times as great as that provided in the case of and such earnest efforts are being made to increase accounts insured by the Federal Savings and Loan Government receipts it would be more prudent Insurance Corporation. to permit the rate to remain where it is with the In the second place, the comparison of the risks ultimate view of repaying this 100 million dollars should be on the basis of the insured accounts of to the Treasury when possible, rather than to reduce the institutions and not their total assets. The the rate in the face of all the factors outlined above. 239 MARCH 1946 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FINANCING WAR PRODUCTION AND CONTRACT TERMINATIONS UNDER REGULATION V In the early stages of the National Defense and sub-subcontractors, where the amount of work- Program, prior to July 1940, the principal sources ing capital required was far beyond any amount of working capital credit for defense contractors that a commercial bank could be asked to provide were commercial bank loans, Federal Reserve Bank without some form of protection against loss, or loans under Section 13b of the Federal Reserve Act, was in excess of the bank's legal lending limit, and Reconstruction Finance Corporation industrial and where it was either not possible or not feasible loans. Also, the War and Navy Departments had to handle the situation through advance payments. authority to make progress payments on certain Moreover, certain inherent disadvantages limited contracts up to the value of the work completed, the amount of financing of war production conprotected by a lien upon the articles being pro- tracts through advance payments. First, and most duced. important of all, advance payments could legally In order to meet the demands of defense con- be made only to contractors with the Armed Servtractors; particularly to finance their initial heavy ices, i. e., prime contractors. It was possible for costs, the Navy Department was later authorized the prime contractor, with the approval of the conin the Act of June 28, 1940, to make advance pay- tracting agency, to use funds received from the ments on contracts for war supplies not exceeding Services to make advances to his subcontractors, 30 per cent of the contract price. Similar authority and in many cases this was done. In general, howwas given the War Department in the Act of ever, this procedure was not feasible, and therefore July 2, 1940. These provisions were superseded advance payments did not prove to be a satisfactory by Title II of the First War Powers Act of Decem- method of meeting the credit needs of subcontracber 18, 1941, under which Executive Order 9001 tors. In the case of contractors who had contracts was issued authorizing the War and Navy Depart- with different supply services of the War Departments and the Maritime Commission to make ad- ment or bureaus of the Navy Department, the vance, progress, and other payments upon their limitation of the use of advance payment money contracts in any percentage of the contract price by each service or bureau to its own contracts rewhenever, in their judgment, the prosecution of sulted in difficult problems of maintaining segrethe war would be facilitated thereby. gated accounts. The financing through advance payments of a prime contractor who was also a The extension of commercial bank credit to war subcontractor led to similar administrative probproduction contractors was greatly facilitated by the lems. Other difficulties grew out of the necessity Assignment of Claims Act of 1940, which became of making certain that large portions of the amounts effective on October 9, 1940. This Act amended authorized were not advanced before they were former statutes so as to provide in substance that actually needed. Premature advances resulted in claims for moneys due or to become due from the funds lying idle in the banks. Finally, advance United States under a contract providing for paypayments were originally made without interest, ments aggregating $1,000 or more might be asand this tended to encourage contractors to acquire signed to a bank, trust company, or other financing unnecessarily large stocks of raw materials before institution, including any Federal lending agency. they were actually needed. The imposition of a The Assignment of Claims Act was of no assistance standard interest charge of 2% per cent in June of to subcontractors who held no prime contracts. 1942 did much to eliminate this difficulty. Both the War and Navy Departments soon found that the methods of financing thus made available Early in 1941 the War and Navy Departments, were still inadequate, particularly in view of the recognizing the difficulties of financing contractors fact that the extension of subcontracting under the by advance payments, suggested the possibility of war production program to a point never before some form of joint financing to be participated in contemplated in American industry brought many by the Services and private banks. Various bills hundreds of small companies into the program. to remedy the situation were introduced in Con- Situations arose, especially among subcontractors gress, including one, supported by the War and 240 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FINANCING WAR PRODUCTION AND CONTRACT TERMINATIONS UNDER REGULATION V Navy Departments, to amend Section 13b of the Finance Corporation, or any other financing insti- Federal Reserve Act so as to liberalize the authority tutions to finance contractors engaged in war proof the Federal Reserve Banks to provide working duction. It was also proposed that the executive capital for industry. None of this legislation was order should designate the Federal Reserve Banks enacted. as fiscal agents for the Services so as to utilize the The origin of Regulation V loans. In the mean- existing experience and personnel of the twelve time, problems of securing the financing of indi- Federal Reserve Banks and their 24 branches located vidual war contracts were becoming more numerous, throughout the United States. particularly from the point of view of the produc- The proposed executive order was approved by tion program of the War Department. In the the Bureau of the Budget and by the Office of the latter part of February 1942 a conspicuous incident Attorney General, and was signed by the President arose in which a subcontractor whose production on March 26,. 1942, as Executive Order No. 9112. was vital to the aircraft program was unable to Confirmation of the executive order by Congress secure essential working capital through private was included in the Act of June 11, 1942, which sources or by advances from his prime contractor. created the Smaller War Plants Corporation. This brought the entire matter to a head. It The Executive Order provided that the operations seemed apparent that necessary legislation could of the Reserve Banks should be subject to such not be obtained without additional delay and that directions and conditions as the Board of Governors some quicker method of solving the problem must of the Federal Reserve System, by regulation, might be found. prescribe after consultation with the Services. A means of achieving the desired result was Regulation V of the Board of Governors was issued suggested by officials of the War Department after effective April 6, 1942, setting forth the general discussions with representatives of the Board of arrangements under which the Reserve Banks Governors and others. This contemplated the issu- would act on behalf of the Services. It made the ance of an executive order under which the Federal Reserve Banks responsible for carrying out instruc- Reserve Banks would act as fiscal agents for the tions issued by the Services and reserved for the Services in the guaranteeing of loans made by Board of Governors the power to prescribe rates financing institutions for war production purposes. of interest, guarantee fees, and other charges in Through prompt action in formulating a workable connection with guaranteed loans. program a serious impediment to maximum pro- Instructions were promptly issued by the Secreduction by small contractors, sorely needed at that tary of War, the Secretary of the Navy, and the time, was eliminated. It was early decided that the Chairman of the Maritime Commission to the program, which became known as the "V" loan Federal Reserve Banks with respect to their duties program, was one which could be advantageously as agents for the Services. Among other things, utilized by both the War and Navy Departments these instructions provided for investigation, report, and by the Maritime Commission. Representatives and recommendation by the Federal Reserve Bank of those agencies, as well as of the War Production in connection with each application for a guarantee. Board and the Board of Governors of the Federal Operating procedure under Regulation V. In Reserve System, participated in policy making con- the War Department, the V loan program was ferences from the beginning. administered by the Advance Payment and Loan In order to obtain the necessary authority to put Branch, Office of the Fiscal Director, and in the the program into effect, the Chairman of the War NaVy' Department and the Maritime Commission Production Board, the Under Secretary of War, by their respective Finance Divisions. The general the Under Secretary of the Navy, and the Chairman procedure under which loan guarantees were of the Maritime Commission addressed a joint letter granted was about as follows. The manufacturer, to the President of the United States, proposing an or other war contractor, who had need of financing executive order under the First War Powers Act to handle his war contracts would apply to his local which would authorize the War and Navy Depart- banker for credit. If the needed credit was in ments and the Maritime Commission to guarantee, excess of that which the local bank could furnish or participate in, loans or commitments entered into because of the risk or of legal loan limitations, the by any Federal Reserve Bank, the Reconstruction bank would apply to the nearest Federal Reserve 241 MARCH 1946 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FINANCING WAR PRODUCTION AND CONTRACT TERMINATIONS UNDER REGULATION V Bank or branch for a guarantee of a specified per- guaranteeing agencies and at the twelve Federal centage of the proposed loan. The local bank Reserve Banks and their branches. Important would usually suggest terms and conditions of the policy questions were discussed by a joint policy loan and furnish necessary credit data. The Re- committee made up of representatives of the three serve Bank would then review the information, guaranteeing agencies and of the Board of Goverand approve the terms or suggest such modifications nors, and the resulting uniformity in policy deas seemed necessary to protect the interest of the cisions was responsible to a considerable degree for Government. the success of the Regulation V financing program. In connection with its program of decentraliza- The Office of the Administrator for War Loans tion, the War Department assigned liaison officers obtained periodic reports from the Federal Reserve to serve at each of the twelve Federal Reserve Banks covering their guaranteed loan operations Banks, the Detroit Branch of the Federal Reserve and has maintained the statistical records on which Bank of Chicago, and the Los Angeles Branch of published data are based. the Federal Reserve Bank of San Francisco. These The first standard form of guarantee agreement liaison officers were required to certify that each for use by the War Department, Navy Department, borrower applying for a War Department guaran- and Maritime Commission was issued under date tee was engaged in an operation deemed to be of May 14, 1942. The guarantee takes the form of necessary, appropriate, or convenient for the prose- an obligation on the part of the guarantor to purcution of the war and was in need of funds to chase the guaranteed percentage of the outstanding expedite war production. They also entered into amount of the loan from the financing institution negotiations with the Reserve Banks and the bor- on ten days' notice, irrespective of whether any rowers as to the terms necessary to protect the default had occurred on the part of the borrower. Government's interest. Field officers of the Mari- The guarantee agreement of May 14, 1942, contime Commission furnished similar statements of tained provisions, Sections 5 and 6, to protect both necessity with reference to its guaranteed loans. the financing institution and the borrower against The War Department delegated to the Federal cancellation of the borrower's war contracts for the Reserve Banks authority to approve, with the con- convenience of the Government. Section 5 procurrence of the liaison officer, and execute guaran- tected the financing institution by providing, in the tees of loans of $100,000 or less if the percentage event of cancellation, for an increase in the guarantee percentage based upon the ratio of the borrower's of guarantee was not in excess of 90 without subcancelled contracts to its total war contracts. Secmission of the application to Washington. The tion 6 gave protection to the borrower by providing, Maritime Commission delegated similar authority in the event of cancellation, for a suspension of to the Reserve Banks when the guaranteed portion maturity and a waiver of interest on a portion of of the loan was not in excess of $100,000. Because the loan based upon the same ratio. Interest so most of the Navy Department procurement prowaived, up to 2l/ per cent per annum, was payable gram was centralized in the technical bureaus in 2 by the guarantor. Benefits of these protective pro- Washington, it was believed that applications for visions continued in effect until settlement of the loan guarantees could be acted upon more promptly contracts on which the adjustments were based. if they were all forwarded to Washington for con- The following charges for guarantee fees payable sideration. Consequently, the Navy Department by financing institutions were prescribed by the did not delegate authority to the Reserve Banks to Board of Governors in April 1942 after joint apapprove and execute guarantees without submission proval by the Under Secretary of War, the Under of the applications to Washington. Secretary of the Navy, and the Chairman of the All applications for guaranteed loans, and all Maritime Commission: correspondence between the Federal Reserve Banks and the guarantors in connection with the V loan Percentage of loan Guarantee fee program, passed through the Office of the Adminis- guaranteed (Percentage of loan rate) trator for War Loans of the Board of Governors. 0 to 75 10 to 20 By having all matters pertaining to the program 76 to 90 20 to 25 91 to 100 30 to 40 pass through a single office, it was possible to establish substantially uniform procedures by all three A maximum interest rate of 5 per cent on guaran- 242 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FINANCING WAR PRODUCTION AND CONTRACT TERMINATIONS UNDER REGULATION V teed loans was stipulated. Within this limit the these fears, the War Department, Navy Departinterest rate was determined by the borrower and ment, Maritime Commission, and Board of Goverthe financing institution. A revised schedule of nors announced on September 1, 1943, a broadened guarantee fees was adopted on December 29, 1942, basis for the guaranteeing of loans which would as follows: enable contractors who made arrangements in advance to obtain the use of most of their working Percentage of loan Guarantee fee guaranteed (Percentage of loan rate) capital promptly upon cancellation of their war 60 or less 10 contracts for the convenience of the Government. 65 12 Vz Loans guaranteed upon this broadened basis 70 15 were known as VT loans to distinguish them from 75 17/ 2 V loans. V loans were essentially production loans 80 20 although in some cases they contained certain pro- 85 22 Vz 90 (for loans of $150,000 or less) 25 visions for termination financing as well. They 90 (for loans over $150,000) 25-30 were, in general, made to concerns who were sub- Over 90 30-50 contractors or mixed prime and subcontractors or prime contractors having contracts with a number After a year's experience a revision of the standof different technical services or with both the Army ard form of guarantee agreement was adopted and Navy. Frequently the concern may have had effective April 6, 1943, primarily to effect certain several hundred contracts and purchase orders technical improvements. It was prepared by reprewhich had to be financed on an over-all basis. sentatives of the War Department, Navy Depart- The loans thus usually took the form of revolving ment, Maritime Commission, and the Board of credits with maturities usually not exceeding two Governors of the Federal Reserve System, after years. They required repayments out of moneys discussions with members of the War Loans Comcoming due from war production contracts assigned mittee of J:he American Bankers Association, memas security. bers of the Banking Practice Committee of the Reserve City Bankers Association, officers and at- VT loans were similar except that they were torneys of the twelve Federal Reserve Banks, and intended to free working capital upon termination a selected group of attorneys for commercial banks of contracts as well as to provide working capital in various parts of the country. to finance the contracts. VT loans were guaranteed under the standard form of guarantee agreement The scope of operations under the guaranteed used for V loans, with two principal amendments. loan program was enlarged by Executive Order No. The first required the financing institution to have 9336 issued by the President on April 24, 1943. a participation in the loan at all times; accordingly, This order authorized the Office of Lend-Lease the original percentage of guarantee specified was Administration and the War Shipping Adminisnot subject to increase upon cancellation of war tration to underwrite any guarantees made on their production contracts as was the case with V loans behalf by the War and Navy Departments and the under Section 5 of the guarantee agreement. The Maritime Commission. second amendment required the financing institu- On May 12, 1943, the Board of Governors established a maximum of lA per cent per annum for tion to share with the guarantor any commitment fee charged the borrower on the loan. any commitment fee charged the borrower by the financing institution on a Regulation V loan. The maximum amount of credit available to a Extension of program to include VT loans. Dur- borrower under a VT loan was based upon a stated ing the summer of 1943 it became evident that percentage of inventories, work in process, accounts many concerns engaged in war production were receivable, and, without duplication, amounts paid reluctant to assume additional war contracts because or concurrently to be paid to subcontractors or of the fear that their working capital would be tied suppliers on claims arising out of the termination up in such contracts at the termination of the war. of war production contracts. The Board of Gov- They felt this might delay their return to peacetime ernors prescribed a maximum commitment fee of operations and thus place them in an unfavorable Y 2 per cent on VT loans. competitive position. In order that war production The Maritime Commission did not authorize any schedules might not be interfered with because of VT guarantees, as it desired to guarantee loans MARCH 1946 243 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FINANCING WAR PRODUCTION AND CONTRACT TERMINATIONS UNDER REGULATION V only for war production purposes. The Navy De- working capital for war production purposes or to partment restricted borrowings, prior to cancella- provide funds for both production and contract tions, to amounts actually needed for war produc- termination financing. These new 1944V loans tion purposes. The War Department, however, were similar to the VT loans made between Sepdid not insist upon any such limitations, leaving it tember 1943 and September 1944. The form of entirely up to the financing institutions to see that guarantee agreement was simplified and shortened, all borrowings were within the terms of the bor- largely by deleting Sections 5 and 6 of the April 6, rowing formula. 1943, form of agreement. The War Department Legislation for contract termination loans. In the delegated to the Federal Reserve Banks authority fall of 1943, steps were taken to provide legislation to execute, with the concurrence of the liaison covering contract termination financing. The Joint officer, guarantees of 1944V loans totaling $250,000 Contract Termination Board established a Sub- or less to any one borrower when the requested committee on Interim Financing, which prepared a percentage of guarantee was not in excess of 90. statement of policy on termination financing, that Similar authority was delegated to the Reserve was incorporated in the Baruch-Hancock Report on Banks by the Maritime Commission with respect War and Post-War Adjustment Policies of February to guarantees of $100,000 or less on loans to any .15, 1944. The recommendations of this report were one borrower when the requested percentage of in turn reflected in the Contract Settlement Act guarantee was not in excess of 90. of 1944, approved July 1, 1944. Guarantee fees prescribed by the Board of Gov- On August 18, 1944, the Director of Contract ernors for T loans and 1944V loans were substan- Settlement issued his General Regulation No. 1 tially below those which were in effect for V and prescribing procedures and policies to be followed VT loans. The maximum rate of interest which by the War and Navy Departments and the Mari- might be charged a borrower was reduced from time Commission in guaranteeing termination loans 5 per cent to 4^2 per cent. The following is the through the agency of the Federal Reserve Banks. schedule of fees payable to the guarantor by the Such termination loans, known as T loans, arc for financing institution on both 1944V and T loans: the purpose of enabling war contractors to obtain Percentage Guarantee fee the use of funds tied up in war production pending of loan (Percentage of amount of final settlement of claims arising from terminated guaranteed interest payable by borrower) 80 or less 10 contracts. The T loan program was a logical ex- 85 15 tension of the V and VT loan programs, and 90 20 Regulation V of the Board of Governors of the 95 30 Federal Reserve System was revised effective Sep- Over 95 50 tember 11, 1944, to cover loans made under the The maximum commitment fee that a financing Contract Settlement Act as well as loans made institution may charge is 54 per cent or a flat fee under the President's Executive Order No. 9112. not to exceed $50, and the sharing in the commit- Under the T loan program the War Department ment fee by the guarantor was eliminated. and Maritime Commission delegated to the Federal Decline in lending activities. Cancellations of Reserve Banks authority to execute guarantees of war contracts following termination of the war in loans totaling (a) $500,000 or less to any one bor- Europe in May and in the Pacific in August did rower when the requested percentage of guarantee not bring any substantial increase in applications is not in excess of 90 and (b) $100,000 or less to for guaranteed termination loans. any one borrower when the requested percent- Upon the Japanese surrender, it was determined age of guarantee is not in excess of 95, sub- by the Services that new Regulation V loans other ject to the concurrence of the liaison officer in than T loans should be authorized only in excepthe case of applications for War Department guar- tional cases in which there is a clear necessity for antees, and of the field officer in the case of Mari- procurement of supplies or services from a partime Commission guarantees. ticular borrower and no other means of adequate Since September 1944 only two types of guaran- financing is available to that borrower. Pursuant teed loans have been authorized, namely, T loans to that policy only a few 1944V guarantees have and 1944V loans. 1944V loans were to provide been authorized since August 1945. 244 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FINANCING WAR PRODUCTION AND CONTRACT TERMINATIONS UNDER REGULATION V Between September 1945 and the middle of limited to 90 per cent, many were substantially January 1946 the War Department closed its liaison below that percentage and in few cases did the offices at the Federal Reserve Banks. Incident to percentage of guarantee exceed 90. The guaranteed the decline in guaranteed loan activity and the TABLE 1 discontinuance of the War Department liaison PERCENTAGE DISTRIBUTION OF REGULATION V offices, authority was delegated to the Federal Re- LOANS AUTHORIZED TO DECEMBER 31, 1945 BY SIZE OF LOAN serve Banks by the War and Navy Departments to take action without submission to Washington Percentage of totalPercentage of total whenever, in the discretion of the Reserve Bank, number of loans amount of loans such action is deemed to be of relatively minor Size of loan Cumu- Cumuimportance and not materially affecting the inter- Group lative Group lative ests of the guarantor. Such authority to act in- $10,000 or less 5.3 5.3 0.2 0.2 cludes amendments of guarantee agreements and 10,001-50,000 18.4 23.7 0.5 0.7 50,001-100,000 15.8 39.5 1.1 1.8 loan agreements, consents or approvals concerning 100,001-250,000 19.1 58.6 2.9 4.7 acts by borrowers or financing institutions, waivers 5 2 0 5 0 0 , , 0 00 0 1 1 - - 5 1 0 ,0 0 0 ,0 0 0 ,0 0 00 1 1 6 0 . . 3 8 8 7 5 4 . . 7 9 5 7 . . 4 2 1 1 0 7 . . 1 3 of default, and extensions of maturity not exceeding 1,000,001-5,000,000 11.4 97.1 22.0 39.3 5,000,001-50,000,000 2.7 99.8 31.5 70.8 60 days. Applications for War Department guar- Over 50,000,000 0.2 100.0 29.2 100.0 antees have been submitted to Washington for 100.0 100.0 approval since discontinuance of its liaison offices at the Federal Reserve Banks. portion of loans outstanding December 31, 1945, Statistical summary of guaranteed loans. To averaged 85 per cent. December 31, 1945, a total of 1,400 banks and other From the beginning of the V loan program in financing institutions had made or participated in April 1942 to December 31, 1945, the Federal guaranteed loans under Regulation V. The smallest Reserve Banks received 9,605 applications for credit guaranteed was for $400 and the largest for guaranteed loans aggregating $10,674,433,000. The one billion dollars. Nearly 400 banks participated War Department, Navy Department, and Maritime in the latter credit, of which only 100 million Commission authorized 8,757 guaranteed loans dollars was utilized. This credit, like many totaling $10,339,400,000. Of these authorizations other guaranteed loans, was arranged for under 6,678 for $7,952,972,000 were War Department the provisions of Regulation V because the guaran- guarantees; 1,794 for $2,212,241,000 were Navy teed portion of Regulation V loans was not subject Department guarantees; and 285 for $174,187,000 to legal limitations on the amount which might be were Maritime Commission guarantees. Only 847 lent to a single borrower. The maximum amount applications aggregating $334,833,000 were rejected of this particular credit was in excess of the total by the guaranteeing agencies. The principal reasons lending capacity of all the commercial banks in for rejections were that the guarantor could not the country (approximately 600 million dollars) certify that the production of the applicant was necon such loans to a single borrower. Of the essary, appropriate, or convenient for the prosecutotal number of Regulation V loans authorized, tion of the war, or that it was believed preferable to 58.6 per cent were for loans of $250,000 or less and provide the necessary financing by advance payapproximately 75 per cent were for amounts of ments. Of the 8,757 guarantees authorized, 7,999 $500,000 or less, indicating that many smaller con- were actually executed, covering credits aggregating cerns were assisted by this method of financing. $9,891,284,000. Table 1 shows the percentage of total number and Total credit available under guaranteed loans amount of guaranteed loans authorized, classified was always considerably in excess of the amounts by size of loan. being borrowed. The largest amount of Regulation In general, it was the policy of the Services to V credit outstanding at any time was $2,083,435,000 keep the percentages of guarantee as low as theat the end of July 1944. Credit available reached its character of the risk and the size of the loan peak at the end of October 1944, when almost justified. The reason for this was to insure ade- $6,263,065,000 was available to borrowers under quate servicing of the loans by the financing in- guaranteed loans. Figures showing the total amount stitutions. Guarantees were accordingly ordinarily of credit available and of guaranteed loans out- MARCH 1946 245 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FINANCING WAR PRODUCTION AND CONTRACT TERMINATIONS UNDER REGULATION V standing semiannually trom June 30, 1942, to table for the Federal Reserve Bank in whose dis- December 31, 1945, are given in Table 2. trict the bank acting as agent for the group was Table 3 shows by Federal Reserve district the situated. Furthermore, guaranteed loans obtained total number and amount of applications for by the larger corporations having plants in various parts of the country are shown in the figures of TABLE 2 TOTAL CREDIT AVAILABLE UNDER REGULATION V only one district, whereas the credit was used in a LOANS AND AMOUNT OF GUARANTEED LOANS OUTSTANDING SEMIANNUALLY number of districts. Also, some large borrowers ar- JUNE 30, 1942—DECEMBER 31, 1945 ranged for credit with a bank in a different Federal Reserve district from the one in which Credit Loans Date available outstanding their production was carried on. For these reasons, the district figures do not reflect the total amount of June 30. 1942 $218,996,571 $81,108,115 Dec. 31, 1942 2,233,841,266 803,720,080 war production credit made available under guar- June 30, 1943 3,638,305,895 1,428,253,058 Dec. 31, 1943 * 5,060,326,526 1,914,040,298 anteed loans in the various districts. June 30, 1944 5,875,114,565 2,064,317,958 Dec. 31, 1944 6,189,556,384 1,735,970,146 Table 4 shows the number and amount of each June 30, 1945 5,081,469,152 1,386,850,954 Dec. 31, 1945 1,476,864,742 510,269,776 type of guaranteed loan authorized to December 31, 1945, and the amount of loans outstanding and guaranteed loans approved to December 31, 1945, credit available to borrowers under the various and the amount of loans outstanding and credit types on that date. available to borrowers under guarantee agreements A study of Regulation V loans outstanding on in effect on that date. Many guaranteed loans, November 30, 1943, when the volume had almost particularly the larger ones, were participated in by reached its peak, indicated that about one-fourth a group of banks, often located in different Fed- of the $1,798,272,000 of guaranteed loans then outeral Reserve districts. These loans are shown in the standing under 1,860 guarantee agreements was TABLE 3 REGULATION V LOANS AUTHORIZED AND CREDIT OUTSTANDING DECEMBER 31, 1945 BY FEDERAL RESERVE DISTRICTS Applications for guarantee Amount of credit of loans approved to date available to borrowers Loans Guarantee on Federal Reserve district including amount outstanding loans outstanding outstanding Number Amount Boston 472 $238,520,992 $43,829,277.50 $16,245,136.48 $14,563,035.14 New York 1,510 4,505,998,085 689,103,764.31 201,459,124.88 168,578,287.97 Philadelphia 491 322,660,550 68,419,117.12 37,304,252.34 31,879,169.70 Cleveland 727 682,147,860 81,430,697.13 40,271,393.12 35,496,148.17 Richmond 275 85,172,056 12,092,838.86 2,187,748.53 1,795,459.89 Atlanta 235 116,911,800 14,551,916.89 4,717,869.77 4,226,091.45 Chicago.... 2,058 2,728,049,482 353,318,048.40 137,680,457.87 121,137,430.36 St. Louis 432 362,865,872 39,993,000.00 10,046,982.76 9,036,404.48 Minneapolis 288 128,159,773 13,348,850.28 4,316,783.98 3,905,093.18 Kansas City 426 261,093,446 20,312,840.98 6,143,512.36 5,497,410.09 Dallas 251 97,243,300 3,805,000.00 625,605.14 563,044.63 San Francisco 1,592 810,576,712 136,659,390.32 49,270,909.24 38,667,006.93 Total . .... 8,757 $10,339,399,928 $1,476,864,741.79 $510,269,776.47 $435,344,581.99 TABLE 4 REGULATION V LOANS AUTHORIZED AND CREDIT OUTSTANDING DECEMBER 31, 1945 BY TYPES OF LOANS Applications for guarantee Amount of credit of loans approved to date available to borrowers Loans Guarantee on Type ot loan including amount outstanding loans outstanding outstanding Number Amount V Loans 5,953 $6,230,964,222 $481,938,707.76 $139,907,095.62 $117,555,630.95 VT Loans . .. . . 857 2,441,437,000 392,093,752.49 134,111,641.19 111,009,791.72 1944 V Loans 1,117 1,280,038,809 432,231,408.58 206,216,163.10 181,186,694.20 T Loans 830 386,959,897 170,600,872.96 30,034,876.56 25,592,465.12 Total 8,757 $10,339,399,928 $1,476,864,741.79 $510,269,776.47 $435,344,581.99 246 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FINANCING WAR PRODUCTION AND CONTRACT TERMINATIONS UNDER REGULATION V being used for the production of aircraft and its TABLE 5 accessories. Nearly half of the credit outstanding REGULATION V LOANS OUTSTANDING NOVEMBER 30, 1943 BY TYPE OF PRODUCT COVERED IN CONTRACT went to borrowers making such articles as [Amounts in millions of dollars] machinery, electrical equipment and appliances, and a variety of metal products. Table 5 shows the Type of product covered in contract Amount Per cent amount of Regulation V loans outstanding on November 30, 1943, classified by type of product Metal and metal products Aircraft, aircraft engines, parts, and accescovered in contracts held by the borrowers. sories 429.2 23.9 Ship construction and repair: accessories... 100.6 5.6 About 45 per cent of the total number of Regu- Combat transportation and other motor vehicles; accessories 139.4 7.8 lation V loans outstanding on November 30, 1943, Guns, ammunition, bombs, shells, etc.; explosives and ammunition loading and carried the maximum interest rate of 5 per cent, assembling 137.2 7.6 Machinery, electrical equipment & applibut this rate was being charged on less than 6 per ances 341.4 19.0 cent of the total amount of credit outstanding. This Other metal products; iron & steel; nonferrous metals and their products; maindicates that most of the small loans were made at chine tools and other metal working equipment; etc 504.1 28.0 the maximum rate, although many of them were Chemicals, drugs, rubber 30.7 1.7 Textile products, leather 15.3 0.8 made at rates of 3 to 5 per cent. Rates of 3 per cent Foods and related products 22.7 1.3 Other manufactured products, including conor under were common for the larger loans. Table tracts unallocable because of diverse products covered. 55.4 3.1 6 shows the amount of guaranteed loans outstand- Construction '. 16.2 0.9 ing on November 30, 1943, classified by rate of in- Other nonmanufacturing and noninduatrial... 6.1 0.3 terest being charged on the loan and by size of the Total 1,798.3 100.0 borrowing company. From the inception of the guaranteed loan pro- TABLE 6 gram to December 31, 1945, the Federal Reserve PERCENTAGE DISTRIBUTION OF AMOUNT OF REGU- Banks collected $23,720,000 in guarantee and com- LATION V LOANS OUTSTANDING NOVEMBER 30, 1943, mitment fees for the account of the War Depart- BY RATE OF INTEREST AND BY SIZE OF BORROWER ment. The Reserve Banks* expenses reimbursed by Loans to borrowers with total assets of the War Department during this period amounted Rate of interest Total1 to $2,474,000, leaving net receipts to the War De- (per cent) Less than $50,000- $500,000- $5,000,000 partment of $21,246,000. As of December 31, 1945, $50,000 $500,000 $5,000,000 and over the War Department estimated that its total losses 2 0.2 0.0 on guaranteed loans would not exceed $3,369,000. 2 3 -3 3 2 9 3 . . 7 2 0.9 ""3 0 .5 .7 " 1 4 8 . . 6 3 5 2 5 6 . . 0 3 During the same period guarantee and commit- 3 4 -4 1 10 8 . . 2 0 1 16 9 . . 6 4 2 8 3 . . 1 2 3 2 1 5 . . 9 9 1 4 3 . . 0 9 ment fees collected by the Reserve Banks for the 4-5 3.0 2.0 13.2 8.7 0.4 5 5.7 61.0 50.3 10.4 0.3 account of the Navy Department amounted to $7,- Total.... 100.0 100.0 3 100.0 100.0 100.0 736,000. The Reserve Banks' expenses amounted to $760,000, leaving net receipts to the Navy Depart- 1 Total includes a small amount not classified by size of borrower ment of $6,976,000. On December 31, 1945, the as 2 w L e e l s l s a s th t a h n e . t 0 w 5 o p l e o r a n c s e n r t e . ferred to in footnote 3. Navy Department estimated that its total losses 3 Total includes one loan with interest rate of 1 per cent and one loan not classified by rate of interest. would not exceed $2,500,000. The Federal Reserve Banks collected $709,000 in guarantee fees for the lections of $15,883,000 had been received, leaving account of the Maritime Commission. Total ex- an outstanding balance of $11,597,000. The Navy penses of the Reserve Banks amounted to $152,000, Department had purchased 24 loans totaling leaving net receipts to the Maritime Commission of $31,096,000, and collections had been $28,176,000, $557,000. Losses on loans written off by the Mari- leaving a balance of $2,920,000. Corresponding time Commission to August 31, 1945, amounted to figures for the Maritime Commission were pur- $83,000. No losses have been sustained since that chases totaling $623,000, collections of $540,000, and date, and the Commission does not anticipate suf- a balance of $83,000. fering further losses. From the beginning of the program to December As of December 31, 1945, the War Department 31, 1945, the War Department authorized 29 adjusthad purchased 115 loans from financing institutions ments, involving increases in the percentage of in the total amount of $27,480,000, upon which col- guarantee, pursuant to the provisions of Section 5 MARCH 1946 247 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FINANCING WAR PRODUCTION AND CONTRACT TERMINATIONS UNDER REGULATION V of guarantee agreements covering V loans, and 126 financing of war production contracts by utilizing suspensions of maturity and waivers of interest pay- the existing banking structure. Moreover, to a ments by the borrowers under provisions of Section considerable extent the financing was decentralized, 6. The total principal amount of adjustments under the loans being made by local banks to local inthe provisions of Section 6 was $168,666,000. The dustry. Without such a program it is probable that Navy Department approved four adjustments under the production of war materials would have been the provisions of Section 5, and 25 adjustments more centralized and more Government financing under the provisions of Section 6. The total through direct lending or by other means would principal amount of loans on which adjustments have been necessary. The Armed Services, in letters under Section 6 were approved was $10,359,000. to the Board of Governors regarding the participa- No adjustments were made by the Maritime Com- tion of the Federal Reserve System in the financing mission under provisions of Section 5 and only two of war production, recently stated that in their adjustments under the provisions of Section 6. opinion the Regulation V program had made an The total principal amount of the two Section 6 important contribution to the achievement of adjustments was $1,945,000. maximum production by American industry and The Regulation V program facilitated the thus to the successful prosecution of the war. Distinguished Service in War Finance^ The Treasury Department's Silver Medal for Dis- in the Federal Reserve System are being honored." tinguished Service in War Finance was awarded The members of the Board of Governors awarded today to the chairman and members of the Board the Silver Medal are: Marriner S. Eccles, Chairof Governors of the Federal Reserve System and the man; R. M. Evans, M. S. Szymczak, Ronald Ranpresidents of the twelve Federal Reserve Banks by son, Ernest G. Draper and John K. McKee. Secretary of the Treasury Fred M. Vinson. The presidents of the Federal Reserve Banks, In presenting the medals, Secretary Vinson said: meeting in Washington this week, are: Ralph E. "The Federal Reserve System as fiscal agents of the Flanders, Boston; Allan Sproul, New York; Ray M. Treasury Department processed some 186 billion Gidney, Cleveland; W. S. McLarin, Jr., Atlanta; dollars in securities in the seven War Loans and the C. S. Young, Chicago; Chester C. Davis, St. Louis; Victory Loan and the interim sale of savings bonds Alfred H. Williams, Philadelphia; J. N. Peyton, since May 1, 1941. Despite a wartime shortage of Minneapolis; H. G. Leedy, Kansas City; R. R. Gilpersonnel the System kept abreast of this flow of bert, Dallas; Ira Clerk, San Francisco, and Hugh securities, without precedent in financial history for Leach, Richmond. The Silver Medal was awarded its volume. In this all ranks took part in the spirit also to William A. Day, former president of the San Francisco Federal Reserve Bank. of good soldiers, with great credit to themselves. In honoring thus the governors and presidents, all ranks * Released to the press by the Department of the Treasury, Feb. 28, 1946. 248 FEDERAL RESERVE BULLETIN 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. Consumer Credit Board were each represented by counsel, and each presented evidence. Upon the basis of the facts Suspension of License and Consent Injunction developed at such hearing, the Board's Hearing The Board of Governors of the Federal Reserve Officer submitted his recommended findings and System has suspended for 60 days from February opinion, which were furnished to counsel in order 24 to April 24, 1946, the license of Motor City that they might file exceptions thereto, and subse- Credit Jewelry Co., Inc., issued under the Board's quently, on January 25, 1946, oral argument was Regulation W. This company, which is located at had before the Board at its offices in Washington, 22900 Van Dyke Street, Van Dyke, Michigan (a D. C. suburb of Detroit), sells jewelry on an instalment At the hearing in Detroit, no evidence was introbasis. The order was issued after a hearing in duced by the Registrant to rebut the evidence of Detroit, at which evidence was taken, and oral arviolations of the Regulation, and counsel for the gument before the Board in Washington. Under Registrant does not contend that the recommended the order the company will be prohibited from findings were unsupported by the evidence or making credit sales during the period of suspension. erroneous. They may therefore be accepted by the In addition, the United States District Court has Board. issued a decree, by consent, enjoining the company It appears that Registrant is a corporation orfrom further violations of the Regulation, thus ganized under the laws of the State of Michigan. putting the company under judicial restraint. Its sole office is located at 22900 Van Dyke Street, The company was charged with numerous and Van Dyke, Michigan, a suburb of the city of Derepeated violations of the Regulation. They introit, where it engages principally in the sale of cluded failure to obtain the down payments rejewelry on credit. Its annual business is in excess quired by the Regulation and the falsification of the of $100,000. At all times mentioned herein, Regiscompany's records for the purpose of concealing the trant has been licensed by the Board under the failure to obtain the required down payments. provisions of Regulation W, and has been subject The Board's Findings and Opinion and Order to the requirements of that Regulation. Suspending License, are as follows: Registrant is a family corporation, its stock being owned 45 per cent by David Fink, 35 per cent by IN THE MATTER OF Sol Fink, a brother, and 20 per cent by their mother. MOTOR CITY CREDIT JEWELRY CO., INC., During the period covered by the evidence (Sep- VAN DYKE, MICHIGAN. tember 1944 to November 1945) Registrant was under the management of David Fink, President, FINDINGS AND OPINION and Eleanor Fink, Secretary-Treasurer, assisted by This is a proceeding under section 3(d) of Regu- Leonard Fink, a brother, who was not an officer of lation W to determine whether the Motor City the company. For a part of this time there was Credit Jewelry Co., Inc., Van Dyke, Michigan also one other clerk in the store, a boy about 16 (hereinafter referred to as the "Registrant"), has years of age, whose name does not appear. violated sections 4(a) and 12(h) of said Regulation, On September 26, 1944, an investigator from and, if so, whether Registrant's license should be the Detroit Branch of the Federal Reserve Bank revoked or suspended. of Chicago made a routine investigation of Regis- The hearing was begun on November 9, 1945, at trant's books and records to determine whether the offices of the Detroit Branch of the Federal Registrant was complying with Regulation W. Reserve Bank of Chicago. The Registrant and the This investigation disclosed a number of apparent MARCH 1946 249 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT violations, particularly shortages in the down pay- mental requirements of the Regulation, and for a ment required by section 4(a) of the Regulation. time at least, these were aggravated by other vio- The violations also included several instances where lations designed to conceal them. the Registrant's records, which are required by In his oral argument before the Board, Regissection 12(h) of the Regulation to be adequate for trant's counsel, without challenging the facts as the purpose of determining whether the provisions found above, emphasized that two of the four of the Regulation are being obeyed, were found Fink brothers had been absent in military service to be totally inadequate for that purpose. These during all of the times referred to herein and one matters were called to the attention of Eleanor and of these and their mother together own a majority Leonard Fink, who promised future compliance. of the stock of the Registrant. He urged that the A second investigation was made on January 19, Board give consideration to the fact that these two 1945, which again disclosed numerous shortages in veterans, who expect to make their livelihood from down payments, as well as a continued failure to the operation of the Registrant, and their mother, maintain adequate records. As a result of this all of whom were innocent of any violations of the investigation, a disciplinary conference was held Regulation, would be severely penalized by a at the offices of the Reserve Bank on February 2, revocation of Registrant's license. 1945, which was attended by David Fink. Once Obviously, these arguments are in no sense exagain, full future compliance was promised. culpatory of Registrant's past continued disobedi- A third investigation was commenced on April ence of the Regulation. And, however much they 17, 1945. Registrant's records indicated that Regis- may otherwise appeal to the Board, they may not trant had carried out the suggestions made at the properly be considered by it in carrying out its disciplinary conference on February 2 and showed enforcement functions under the Regulation. The apparent substantial compliance with the Regula- latter was promulgated as a part of the Governtion. It was noted, however, that a considerable ment's program against inflation and, to be effecnumber of instalment credit transactions were tive, should be obeyed by all to whom it applies. marked "lay-away," indicating that the store had If the Board were to be deterred in its enforcement retained possession of the merchandise until the of the Regulation because of its possible effect upon purchaser had paid the full amount of the down innocent corporate stockholders, it would be estabpayment required by section 4(a) of the Regulalishing a precedent which might very well eliminate tion, at which time the records showed that delivery the Regulation as an effective medium of credit of the merchandise was made to the purchaser. No control. customer contacts were made to verify these nota- These considerations were pointed out to counsel tions in the company's records. for the Registrant at the time of the oral argument. A fourth and final investigation was commenced At that time, however, the Board suggested that, on August 31, 1945, and again a considerable numif some arrangement satisfactory to the Board's ber of "lay-away" transactions were noted. This counsel could be worked out which would give time, customer contacts were made, and they dispositive assurance of future compliance, the Board closed the fact that Registrant had been systematimight, consistently with its duty to preserve public cally falsifying its records. Specifically, they disrespect for and continued obedience to the Reguclosed that customers were allowed to take merlation, impose a less severe penalty than that recomchandise from the store on the day of purchase mended by the Hearing Officer. without making the required down payment, and Since the oral argument the Board is advised that the records of these sales were marked "laythat, as a result of a stipulation entered into beaway," showing delivery of the merchandise on a tween counsel on January 31, 1946, and approved subsequent date when the purchaser's payments by the Board on that date, the following events had equaled or exceeded the required down payhave occurred: ment. The conclusion is inescapable that Registrant availed itself of this artifice to conceal a 1. On February 14, 1946, a consent decree was studied and deliberate series of violations of the entered in the United States District Court in Regulation. In the face of repeated warnings, Detroit against the Registrant and David Fink, Registrant has continued to violate the most funda- together with all of Registrant's officers and em- 250 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT ployees, enjoining them from further violations of to and including April 24, 1946, unless this order is Regulation W. sooner terminated by the Board. 2. David Fink resigned as President of the By order of the Board of Governors of the Fed- Registrant. eral Reserve System this 18th day of February, 3. David Fink's stock interest in Registrant was 1946. reduced from 45 per cent to 30 per cent by the S. R. CARPENTER, transfer of 15 per cent to his brother, Nathan Fink. Secretary. 4. Appropriate resolutions were adopted by Registrant's stockholders placing the management of Suit Regarding Removal of Bank Directors Registrant's business in Sol and Nathan Fink, re- The United States Court of Appeals for the Disquiring all credit sales to be subject to the approval trict of Columbia on February 13, 1946, rendered of either of them, and excluding David Fink from an opinion reversing the decision of the District the making of credit policies and restricting his Court which has dismissed a suit filed by John executive and administrative activities solely to the Agnew and F. O. Fayerweather against the Board handling of the building program and purchasing. of Governors of the Federal Reserve System re- In the light of the changes thus effected in the questing a review of an order of the Board, issued management of Registrant, and the continuing and pursuant to authority conferred by section 30 of the effective nature of the judicial decree entered Banking Act of 1933, removing Messrs. Agnew against it and its employees, the Board is satisfied and Fayerweather as directors of a national bank in that future compliance with the Regulation is Paterson, New Jersey. The removal order by the reasonably assured. Under these circumstances the Board was predicated upon a finding that appel- Board is disposed to reduce the sanction recom- lants had violated section 32 of the Banking Act of mended by the Hearing Officer. Accordingly, it 1933, which prohibits any officer, director or emis the Board's decision that Registrant's license ployee of any company, partnership, or individual, under Regulation W be suspended for a period of primarily engaged in the business of underwriting 60 days. An appropriate order will issue. securities, from serving at the same time as an of- By order of the Board of Governors of the Fed- ficer, director or employee of any member bank of eral Reserve System this 18th day of February 1946. the Federal Reserve System. The appellants contended that the use of the words "primarily en- S. R. CARPENTER, gaged" in section 32 limited its application to cases Secretary. in which the underwriting business of the securities company is first in volume as compared with other IN THE MATTER OF businesses in which it is engaged and that, since this MOTOR CITY CREDIT JEWELRY CO., INC., was not true of the securities company of which they VAN DYKE, MICHIGAN. were employees, the statute was not applicable to them. The Board challenged the appellants' inter- ORDER SUSPENDING LICENSE pretation of the law as set forth above and also chal- A proceeding having been instituted before the lenged the jurisdiction of the court to entertain pro- Board under section 3(d) of Regulation W to de- ceedings to review the Board's order, contending termine whether the license of Motor City Credit that a suit against the Board is in effect a suit against Jewelry Co., Inc., should be suspended or revoked; the United States which has not consented to be public hearings having been held thereon; a Hear- sued. ing Officer's report having been filed with the A divided court reversed the decision of the Board and oral argument had thereon; the Board District Court and rendered an opinion interpreting having considered the entire record and arguments the words "primarily engaged" as applying only to of counsel; and the Board having this day issued a company the volume of whose underwriting busiits findings and opinion, ness was greater than that of any other business IT IS ORDERED, that the license of the Motor conducted by it. In this case the Court pointed out City Credit Jewelry Co., Inc., issued pursuant to the that the volume of brokerage business conducted Board's Regulation W, be and the same hereby is by appellants' employer exceeded its "underwritsuspended for the period from February 24, 1946, ing" business. In a strong dissent, it was reasoned MARCH 1946 251 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT that the word "primarily" was used in a sense plication. Appropriate forms for applications and licenses which includes "essentially" or "fundamentally" will be prescribed by the Secretary of the Treasury. Licensees may be required to file reports upon the consummaand not limited to "chiefly" or "principally." The tion of transactions. The decision of the Secretary of the majority opinion also found that the District Court Treasury with respect to an application for license shall be did have jurisdiction of the case as it involved a final. suit to restrain an order which the Court consid- (b) (1) The Federal Reserve Bank of New York is desigered beyond the power of the Board. nated to receive applications from the Federal Reserve Districts of New York, Boston, Philadelphia, Cleveland, Richmond and Atlanta, and from Puerto Rico; Foreign Funds Control (2) The Federal Reserve Bank of Chicago is designated to receive applications from the Federal Reserve Districts of Treasury Regulations Chicago, St. Louis, Minneapolis, Kansas City and Dallas; There is published below an amendment to the (3) The Federal Reserve Bank of San Francisco is desigregulations of the Treasury Department relating to nated to receive applications from the Federal Reserve District of San Francisco; transfers of credit, foreign exchange transactions, (4) Except as provided above with respect to Puerto Rico, the export or earmarking of coin, bullion or cur- the Governor or Foreign Funds Control office having jurisrency, or other similar operations, by persons or diction is designated to receive applications from any terinstitutions in the United States which involve ritory or possession of the United States. property of certain foreign countries or nationals FRED M. VINSON, thereof: Secretary of the Treasury. Treasury Department Treasury Department Releases Foreign Funds Control The following releases relating to transactions in February 19, 1946 foreign exchange, etc., in addition to those hereto- AMENDMENT OF REGULATIONS OF APRIL 10, 1940, fore published in the Federal Reserve BULLETIN, AS AMENDED, UNDER EXECUTIVE ORDER NO. 8389, AS AMENDED.* have been issued by the Office of the Secretary of SECTION 130.3 of the Regulations under Executive Order the Treasury under authority of the Executive No. 8389, as amended, is hereby amended to read as follows: Order of April 10, 1940, as amended, and the SECTION 130.3. Licenses. Regulations issued pursuant thereto: (a) Applications for licenses to engage in any transaction Treasury Department referred to in Sections 1 or 2 of the Order shall be filed in duplicate with the Federal Reserve Bank or other agency Foreign Funds Control designated in paragraph (b) of this section to receive such January 22, 1946 applications from the area in which the applicant resides or has his principal place of business or principal office or REVOCATION OF GENERAL RULING NO. 14 agency. If the applicant has no legal residence or principal Under Executive Order No. 8389, as Amended, Executive place of business or principal office or agency in the United Order No. 9193, as Amended, Sections 3(a) and 5(b) of States, such applications shall be filed with the Federal Re- the Trading With the Enemy Act, as Amended by the serve Bank of New York or the Federal Reserve Bank of San First War Powers Act, 1941, Relating to Foreign Funds Francisco. Application forms may be obtained from any Control** agency designated in paragraph (b) of this section and from General Ruling No. 14, issued August 14, 1942, is hereby the Secretary of the Treasury, Washington, D. C. The aprevoked. plicant shall furnish such information as shall be requested of him by the Secretary of the Treasury or the Federal Re- FRED M. VINSON, Secretary of the Treasury. serve Bank or other agency with which the application is filed. Licenses will be issued by the Secretary of the Treas- Treasury Department ury, acting directly or through any officers or agencies that Foreign Funds Control he may designate, and by the designated Federal Reserve Banks, acting in accordance with such regulations, rulings January 22, 1946 and instructions, as the Secretary of the Treasury may from REVOCATION OF PUBLIC CIRCULARS NOS. 6, 7A, 9 AND 13 time to time prescribe, in such cases or classes of cases as the Secretary of the Treasury may determine. The Federal Re- Under Executive Order No. 8389, as Amended, Executive serve Bank or other agency at which an application is filed Order No. 9193, as Amended, Sections 3(a) and 5(b) of will advise the applicant of the decision respecting the ap- **Sec. 3(a), 40 Stat. 412; Sec. 5(b), 40 Stat. 415 and 966; Sec. 2, 48 Stat. 1; 54 Stat. 179; 55 Stat. 838; Ex. Order * Sec. 5(b), 40 Stat. 415 and 966; Sec. 2, 48 Stat. 1; 54 Stat. 8389, April 10, 1940, as amended by Ex. Order 8785, June 14, 179; 55 Stat. 838; Ex. Order 8389, April 10, 1940, as amended 1941, Ex. Order 8832, July 26, 1941, Ex. Order 8963, Dec. 9, by Ex. Order 8785, June 14, 1941, Ex. Order 8832, July 26, 1941, and Ex. Order 8998, Dec. 26, 1941; Ex. Order 9193, 1941, Ex. Order 8963, Dec. 9, 1941, and Ex. Order 8998, Dec. July 6, 1942, as amended by Ex. Order 9567, June 8, 1945; 26, 1941; Ex. Order 9193, July 6, 1942, as amended by Ex. Regulations, April 10, 1940, as amended June 14, 1941, and Order 9567, June 8, 1945. July 26, 1941. 252 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT the Trading With the Enemy Act, as Amended by the With the Enemy Act, as Amended by the First War First War Powers Act, 1941, Relating to Foreign Funds Powers Act 1941, Relating to Foreign Funds Control.** Control.* Paragraph (4) (a) of General License No. 95 is hereby Public Circular No. 6, issued September 13, 1941, Public amended to read as follows: Circular No. 7A, issued November 6, 1942, Public Circular (a) the term "country specified herein" means the fol- No. 9, issued December 24, 1941, and Public Circular No. lowing: 13, issued January 20, 1942, are hereby revoked. (i) France, effective October 5, 1945; FRED M. VINSON, (ii) Belgium, effective November 20, 1945; Secretary of the Treasury. (iii) Norway, effective December 29, 1945; (iv) Finland, effective December 29, 1945; Treasury Department (v) The Netherlands, effective February 13, 1946; Foreign Funds Control and each country specified herein shall be deemed to February 8, 1946 include any colony or other territory subject to its juris- REVOCATION OF PUBLIC INTERPRETATIONS NOS. 9 AND 15 diction. FRED M. VINSON, Under Executive Order No. 8389, as Amended, Executive Secretary of the Treasury. Order No. 9193, as Amended, Sections 3(a) and 5(b) of the Trading With the Enemy Act, as Amended by the First War Powers Act, 1941, Relating to Foreign Funds Treasury Department Control. Foreign Funds Control Public Interpretation No. 9, issued November 27, 1942, February 19, 1946 and Public Interpretation No. 15, issued June 1, 1944, are hereby revoked. GENERAL LICENSE NO. 74, AS AMENDED ORVIS A. SCHMIDT, Under Executive Order No. 8389, as Amended, Executive Director. Order No. 9193, as Amended, Section 5(b) of the Trading Treasury Department With the Enemy Act, as Amended by the First War Foreign Funds Control Powers Act 1941, Relating to Foreign Funds Control.** February 8, 1946 General License No. 74 is hereby amended to read as PUBLIC INTERPRETATION NO. 19 follows: Under Executive Order No. 8389, as Amended, Executive Certain United States Citizens Generally Licensed and Pay- Order No. 9193, as Amended, Sections 3(a) and 5(b) of ments from Accounts of Certain Other Persons Authorized the Trading With the Enemy Act, as Amended by the First War Powers Act, 1941, Relating to Foreign Funds (1) Certain United States citizens licensed as generally Control. licensed nationals. A general license is hereby granted licensing as a generally licensed national any citizen of the Inquiry has been made whether certification of property United States who is within any foreign country and who is otherwise eligible under General License No. 95 is precluded a national of a blocked country solely by reason of having by reason of any purported transfer to an enemy initiated or established residence in a blocked country subsequent to occurring in enemy-occupied territory. June 6, 1944. The Treasury Department has replied in the negative. In (2) Limited payments* from accounts of other United this respect attention was directed to the Declaration of States citizens authorized. This general license also author- January 5, 1943, regarding forced transfers of property in izes payments and transfers of credit from blocked accounts enemy-controlled territory, and Resolution No. VI of the in the United States for expenditures within the United United Nations Monetary and Financial Conference at Bret- States or the Generally Licensed Trade Area, as defined in ton Woods, New Hampshire, regarding enemy assets and General License No. 53, of any citizen of the United States looted property. who is within any foreign country and who is not entitled ORVIS A. SCHMIDT, to the benefits of paragraph (1) hereof, provided that the Director. following terms and conditions are complied with: Treasury Department (a) Such payments and transfers are made only from Foreign Funds Control blocked accounts in the name of, or in which the February 13, 1946 beneficial interest is held by, such citizen or his family; AMENDMENT TO GENERAL LICENSE NO. 95 Under Executive Order No. 8389, as Amended, Executive (b) The total of all such payments and transfers made Order No. 9193, as Amended, Section 5(b) of the Trading under this general license does not exceed $1,000 * Sec. 3(a), 40 Stat. 412; Sec. 5(b), 40 Stat. 415 and 966; ** Sec. 5(b), 40 Stat. 415 and 966; Sec. 2, 48 Stat. 1; 54 Stat. Sec. 2, 48 Stat. 1; 54 Stat. 179; 55 Stat. 838; Ex. Order 8389, 179; 55 Stat. 838; Ex. Order 8389, April 10, 1940, as amended April 10, 1940, as amended by Ex. Order 8785, June 14, 1941, by Ex. Order 8785, June 14, 1941, Ex. Order 8832, July 26, Ex. Order 8832, July 26, 1941, Ex. Order 8963, Dec. 9, 1941, 1941, Ex. Order 8963, Dec. 9. 1941, and Ex. Order 8998, Dec. and Ex. Order 8998, Dec. 26, 1941; Ex. Order 9193, July 6, 26, 1941; Ex. Order 9193, July 6, 1942, as amended by Ex. 1942, as amended by Ex. Order 9567, June 8, 1945; Regulations, Order 9567, June 8, 1945; Regulations, April 10, 1940, as April 10, 1940, as amended June 14, 1941, and July 26, 1941. amended June 14, 1941, and July 26, 1941. MARCH 1946 253 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT in any one calendar month for any such citizen (b) The total of all such payments and transfers made or his family. under this general license does not exceed $250 in any one calendar month from any such blocked (3) Limited payments from other blocked accounts au- account thorized. This general license further authorizes payments and transfers of credit from blocked accounts in the United (4) Certain transactions not authorized. This general States for expenditures within the United States or the license shall not be deemed to authorize any remittance to Generally Licensed Trade Area, as defined in General License any blocked country or, except as expressly authorized No. 53, of any person who is not within enemy territory, as above> any other Payment, transfer, or withdrawal which defined in General Ruling No. 11, provided that: could not be effected without a license by a person within the United States who is not a national of any blocked (a) Such payments and transfers are made only from country. blocked accounts in the name of, or in which the FRED M. VINSON, beneficial interest is held by, such person; Secretary of the Treasury. 254 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CURRENT EVENTS Federal Reserve Meetings Federal First Vice Reserve Bank President President The Federal Advisory Council met in Wash- Boston Laurence F. Whittemore William Willett ington on February 17-18. The annual organiza- New York Allan Sproul L. R. Rounds Philadelphia Alfred H. Williams W. J. Davis tion meeting of the Council was held on February Cleveland Ray M. Gidney Wm. H. Fletcher Richmond Hugh Leach J. S. Walden, Jr. 17, at which Edward E. Brown, Chairman of the Atlanta W. S. McLarin, Jr. Malcolm H. Bryan Chicago C. S. Young Charles B. Dunn First National Bank of Chicago, was re-elected St. Louis Chester C. Davis F. Guy Hitt President, C. E. Spencer, Jr., President of the First Minneapolis J. N. Peyton O. S. Powell Kansas City H. G. Leedy Henry O. Koppang National Bank of Boston, was re-elected Vice Dallas R. R. Gilbert W. D. Gentry San FranciscoIra Clerk C. E. Earhart President, Walter Lichtenstein was reappointed All of the above represent reappointments except Secretary, and Herbert V. Prochnow was apin the case of Mr. Whittemore at Boston and Mr. pointed Acting Secretary. The Council met with Davis at Philadelphia. the Board of Governors of the Federal Reserve Mr. Whittemore, formerly Assistant to Presi- System on February 18. dent of Boston and Maine Railroad and a Class B A meeting of the Presidents of the Federal director of the Federal Reserve Bank of Boston, Reserve Banks was held February 25-26, and on succeeded Mr. Ralph E. Flanders, who had reached February 28 the Presidents met with the Board retirement age under the Federal Reserve System. of Governors. Mr. Whittemore resigned as Class B Director of On February 28 and March 1 meetings of the the Bank effective February 28, 1946. Mr. Flanders Federal Open Market Committee were held. At has been appointed Consultant to the Board of the meeting on March 1 Marriner S. Eccles was Directors and will thus continue his connection re-elected as Chairman of the Committee and with the Bank. Allan Sproul as Vice Chairman. The representa- Mr. Davis, who had been an officer of the Federal tive members of the Committee elected by the Reserve Bank of Philadelphia since 1917 and a Federal Reserve Banks for the period of one year, Vice President since 1936, succeeded Mr. Drinnen beginning March 1, 1946, are Allan Sproul, Hugh who had resigned as First Vice President effective Leach, C. S. Young, W. S. McLarin, Jr., and Ira February 28, 1946. Mr. Drinnen had been asso- Clerk, Presidents of the Federal Reserve Banks of ciated with the Federal Reserve System since 1919, New York, Richmond, Chicago, Atlanta and San when he joined the examining staff of the Federal Francisco, respectively. The members of the Reserve Board. In 1936 he was appointed First executive committee are Marriner S. Eccles, Chair- Vice President of the Federal Reserve Bank of man; Allan Sproul, Vice Chairman; Ernest G. Philadelphia and served two terms of five years Draper; R. M. Evans; and Hugh Leach. each in that position. Appointments of Presidents and First Vice Presidents of Appointment of Branch Directors Federal Reserve Banks The Board of Governors of the Federal Reserve The Board of Governors has approved the ap- System on February 15, 1946, announced the pointments by the respective boards of directors appointment of Mr. H. C. Meacham of Franklin, of the Federal Reserve Banks of the following Tennessee as a director of the Nashville Branch of Presidents and First Vice Presidents of the Banks the Federal Reserve Bank of Atlanta for the uneach for the term of five years beginning March 1, expired portion of the term ending December 31, 1946. These appointments were made by the 1948. Mr. Meacham is engaged in farming. boards of directors and approved by the Board On March 7, 1946, the Federal Reserve Bank of of Governors pursuant to the provisions of para- San Francisco appointed Mr. E. B. MacNaughton, graph 4 of section 4 of the Federal Reserve Act President, The First National Bank of Portland, as amended: Portland, Oregon, a director of the Portland Branch MARCH 1946 255 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CURRENT EVENTS for the unexpired portion of the term ending De- Federal Reserve Bank of Dallas since September 14, cember 31, 1947, to succeed Mr. Chas. H. Stewart, 1940, resigned on February 14, 1946. who was elected a Class A Director of the Federal Reserve Bank of San Francisco. Mr. MacNaughton Death of Director formerly served as a director of the Portland Branch Mr. Fitzgerald Hall, President, Nashville, from January 1, 1936, to December 31, 1941. Chattanooga, and St. Louis Railway, Nashville, The Board of Governors of the Federal Reserve Tennessee, who had served as a director of the System on March 8, 1946, announced the appoint- Nashville Branch of the.Federal Reserve Bank of ment of Mr. John T. Tenneson, President, Superior Atlanta from February 28, 1935 to December 31, Packing Company, Seattle, Washington, as a direc- 1937, and as a Class B Director of the Federal tor of the Seattle Branch of the Federal Reserve Reserve Bank of Atlanta since February 25, 1935, Bank of San Francisco for the unexpired portion of died on February 7, 1946. the term ending December 31, 1947. Changes in the Board's Staff Elections of Class A and B Directors Mr. Walter Wyatt, who had been a member of the Board's staff since 1917, and its General The Federal Reserve Bank of San Francisco on Counsel since 1922, resigned effective February 28, February 16, 1946, announced the election of Mr. 1946, to accept the position of Reporter of Deci- Chas. H. Stewart, President, Portland Trust and sions for the Supreme Court of the United States, Savings Bank, Portland, Oregon, as a Class A effective March 1, 1946. Director to fill the unexpired portion of the term Effective March 1, 1946, the designation of ending December 31, 1947. Mr. Stewart suc- Mr. George B. Vest has been changed from Genceeds Mr. Richard Shore Smith, who resigned. eral Attorney to General Counsel, and that of Mr. Stewart had served as a director of the Portland Mr. J. Leonard Townsend from Assistant General Branch of the Federal Reserve Bank of San Fran- Attorney to Assistant General Counsel. cisco from June 7, 1945, to February 16, 1946, when he resigned in order to serve as a Class A Admissions of State Banks to Membership in the Director of the Federal Reserve Bank of San Federal Reserve System Francisco. The following State banks were admitted to On February 16, 1946, the Federal Reserve Bank membership in the Federal Reserve System during of San Francisco also announced the election of the period January 16, 1946, to February 15, 1946: Mr. Walter S. Johnson, President, American Box Florida Corporation of California, San Francisco, Cali- Tampa—First Savings & Trust Company of fornia, as a Class B Director to fill the unexpired Tampa portion of the term ending December 31, 1946. Indiana Mr. Johnson succeeds Mr. Elmer H. Cox, deceased. Dillsboro—Dillsboro State Bank Resignation of Class B Director Minnesota Anoka—State Bank of Anoka Mr. E. L. Kurth, President and General Manager, Angelina County Lumber Company, Keltys, Texas Texas, who had served as a Class B Director of the Odem—First State Bank of Odem 256 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN BANKING LAWS AND REPORTS MONETARY AND BANKING REFORM IN GUATEMALA The Republic o£ Guatemala has recently adopted The emergency system of international transfers new monetary and central banking legislation which permits the application of some exchange restricmarks a considerable departure from traditional tions, but only under concretely defined conditions patterns. While this legislation is intended pri- (Articles 38-41), for strictly monetary purposes, and marily to meet the problems confronting a small, in nondiscriminatory forms preserving to a large agricultural country, dependent on a very few ex- extent the essential and automatic features of a free ports subject to wide fluctuations of an accidental or exchange market. Full exchange freedom and stacyclical character, it also provides for a number of bility are maintained for all essential transactions, novel monetary and central banking techniques of and the limitations on other transactions are made broader applicability. Attention is drawn to these to result from the free interplay of supply and dein the discussion which follows. mand rather than from rigid and arbitrary alloca- Monetary legislation. The new monetary tion of individual exchange permits. Finally, the legislation embraces a basic system, supplemented whole system of restrictions is made self-liquidating, and qualified by emergency provisions to be applied assuring the automatic relaxation and removal of only in cases of extreme shortage of international the controls as the need for them decreases or disreserves. appears. Special attention might be given by the The features of the permanent part of the law reader to Articles 38, 53-56, 62-67 and 70-79.1 which are probably of greatest interest are the Central banking legislation. Salient characfollowing: teristics of the central banking legislation may be summarized as follows: 1. Unification of monetary responsibility, for subsidiary coinage as well as for notes, under a single 1. Broad definition of the objectives of central authority (Article 4); banking policy, distinguishing between domestic 2. Provisions for changes in the parity of the and international aims (Articles 2-4); currency in the case of fundamental external dis- 2. Guidance of monetary policy primarily by equilibria in the economy of the country, and in analysis of domestic developments, rather than in accordance with the International Monetary Fund automatic response to changes in international re- Agreement (Article 14); serves (Article 97); 3. Sterilization of revaluation profits and losses 3. Determination of open market powers and in mere bookeeping accounts, in order to remove policies based on domestic requirements for monea strong bias toward currency depreciation, and to tary stability,2 provided that international reserves prevent the development of automatic domestic ex- are adequate to meet external pressures; if interpansionary or deflationary pressures from a mere national reserves are inadequate, reconsideration change in currency parity (Article 17 of the Mon- either of domestic policies or of the external parity etary Law and Articles 12 and 13 of the Central of the currency (Articles 107-108); Banking Law); 1 The reasons supporting recourse to exchange restrictions in 4. Extension of the same principle to the com- specific cases of temporary shortages of exchange, and for setting up the type of controls embodied in the Guatemalan legmercial banks, in order to strengthen their position islation, would require a detailed analysis which can not be presented here. A paper by Robert Triffin entitled "National and discourage interest on their part in exchange Central Banking and the International Economy," and dealing speculation (Article 32); with this problem, will be published later in the year by the Board of Governors of the Federal Reserve System, in The 5. Translation into concrete operational terms of United States in World Trade and Finance (No. 7 of the series Postwar Economic Studies). the obligation assumed by the country, under 2 This would also have the result of facilitating central bank financing of Government expenditures in times of depression, Article IV, Sections 2 and 3, of the International while making similar operations more difficult in times of prosperity and monetary expansion. Such a criterion would appear Monetary Fund Agreement, to base gold and for- far easier to observe and enforce, as well as more in keeping eign exchange transactions on the par value of the with modern monetary and economic theory, than the traditional provisions limiting governmental borrowings to a certain percurrency (Articles 19-34). centage of the Bank's capital and surplus, or to other similarly arbitrary and irrelevant criteria. MARCH 1946 257 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN BANKING LAWS AND REPORTS 4. Introduction of a "net international reserves through the operations of a special Fund for the concept" (Article 74); and investment of interna- Regulation of the Official Bond Market (Articles tional reserves designed to assure the prompt avail- 112-115); ability of any amount needed to finance deficits in 14. Management of official accounts with a view the balance of payments while still providing the to reinforcing monetary stabilization policies (Ar- Bank, especially at times when anti-inflationary ticle 118); action is necessary, with sources of earning power 15. Liberalization of rediscounting rules from other than domestic credit expansion (Articles strict, and highly controversial, "commercial loan 76-78); theory" criteria, in order to permit greater flexi- 5. Definition of a "critical" level of reserves, re- bility in the discharge of the Bank's responsibility as lated to balance of payments needs, rather than to "lender of last resort" (Articles 85-94). domestic note issue or sight obligations, and avoid- Complementary legislation. The monetary ance of any rigid requirement which would make and central banking legislation is only the first step reserves unavailable in times of need (Articles 77, in a comprehensive financial reform, designed to 83, 84, and 107); promote credit facilities for economic development 6. Distinction between temporary disequilibria in as well as to achieve a greater degree of monetary the balance of payments calling for compensatory stability. action, and fundamental disequilibria calling for Of primary concern to the Government is the corrective action (Articles 83-84); reconstruction of an efficient system of private 7. Creation of an independent Monetary Board, banking. With a single exception, all private in close coordination with the Ministries responsible banking institutions disappeared during the thirties, for the formulation of governmental economic and as a result of former excesses and of the policies of financial policies, and endowed with policy making the Ubico regime. Measures now under considerafunctions rather than with detailed responsibilities tion would revive a dormant institution, the Occifor individual operations (Articles 15, 18, 24, 26, dental Bank, and eliminate governmental partici- 31 and 90-92); and corresponding decentralization pation in a hybrid institution, previously devoted to of operating responsibilities (Articles 32-35, 38-40, central banking activities together with commer- 43-44, 53-55 and 90-92); cial and mortgage lending. A general banking 8. Integration of policies relating to money, law, shortly to be introduced before the Guatemalan credit (including bank supervision), and exchange Congress, will modernize and simplify the cumber- (including the administration of emergency restricsome and vexatious provisions of the present banktions) under the authority and responsibility of the ing statutes, while adapting them to the prerequi- Monetary Board (Article 30); and coordination of sites of efficient monetary and credit policy. official and semi-official borrowings with monetary Four additional financial institutions, three of policy (Article 123); which already exist in embryonic form, will com- 9. Broad techniques of monetary control (Arplete the proposed financial reorganization. While ticle 98, with references to other articles menfully independent in the conduct of individual opertioned); ations, all these institutions will be subordinated 10. Broad and flexible provisions with relation to to the Monetary Board in so far as necessary to reserve requirements, and power to apply special coordinate their activities, and to assure the efficient reserve requirements against growth in aggregate integration of their lending policies into the framedeposits (Articles 63-64); work of the general monetary policy of the country. 11. Provision for the issue by the Bank of "Stabilization Bonds," designed to withdraw excess 1. An Agricultural -Industrial Ban\, devoted cash temporarily from the market, in times of in- mostly to medium- and long-term loans, and deflationary pressure (Article 105); signed, not only to assure the availability of credit 12. Capital requirements varying in relation to for production and economic development, but also risk-assets of the Bank, all excess profits to accrue to permit the Monetary Board direct intervention to a Fund for the Regulation of the Official Bond on the credit market for purposes of monetary con- Market (Articles 10-11); trol. Owing to the relatively undeveloped financial 13. Development of a Government bond market structure of Guatemala, the central bank itself could 258 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN BANKING LAWS AND REPORTS not be effective if it remained a pure bankers' bank, That the existing laws of the Republic in the entirely dependent on private institutions for the monetary field are technically deficient and do not transmission of its policies to the market. correspond to modern scientific analysis, and that in consequence it becomes necessary to issue new 2. A Capitalization and Insurance Institute, legislation; which will issue insurance and savings policies and administer the funds originating in social security For that reason, Decrees: the following legislation. The Institute will not lend directly to Monetary Law the public, except in some special and unimportant cases, but will invest its funds through the other First Part banks, both public and private, and particularly The National Monetary System through the purchase of medium- and long-term paper issued by the Agricultural-Industrial Bank. Chapter I 3. An Agricultural Development Institute, which will make small loans for rehabilitation purposes, The Monetary Unit organize agricultural cooperatives, provide tech- The monetary unit—Art. 1. The monetary unit nical assistance to farmers, sell equipment, seeds of Guatemala is the "Quetzal". The quetzal is diand farm implements on a low-cost basis, establish vided into 100 equal parts called "centavos". warehouses, and, in time, assist in programs for The monetary symbol of the quetzal is represtabilizing farm prices. Its loans may be redis- sented by the letter $• counted by the Agricultural-Industrial Bank, but Art. 2. All prices, taxes, assessments, fees, wages, its other activities will be financed by the State, salaries, commissions, premiums, interests, diviwhich will also contribute the capital for the in- dends, rents, contracts and obligations of any class stitution. or kind, that must be paid, collected, received or executed in the Republic, shall be expressed and 4. An Industrial Development Institute, which liquidated exclusively in quetzales. will acquire shares in new agricultural or manu- Any qualifying or restrictive clause that imposes facturing industries. These shares cannot exceed obligations in silver or gold metal, in foreign curone-third of the capital of the industries that are rencies, or in any monetary unit other than the financed, and the Institute must sell its holdings as quetzal, shall be null and void. Nevertheless, this quickly as the market permits. The Institute will nullity shall not invalidate the principal contract, derive its resources from the sale of shares to the when the latter may be reinterpretated in terms of Government (one-third) and to the public (two- the national monetary unit, in which case the rethirds). The Institute will probably be guided at spective obligations shall be liquidated in quetzales; the outset by a program for economic develop- the conversion shall be effected on the basis of the ment now under study with the cooperation of the legal parities corresponding either to the time of the consummation of the contract or to the time of Inter-American Development Commission, but is payment, whichever is more favorable to the debtor. expected to develop progressively a specialized re- Art. 3. Only the following are excepted from the search stafl of its own, in order to orient its investforegoing limitation: ment policy. a) Obligations that establish payments from The official text of the monetary and central Guatemala to foreign countries or from foreign banking laws, as translated from the Diario de countries to Guatemala, and obligations directly Centro America (Guatemala City, December 17, related to the financing of same; 1945 and lanuary 25, 1946), is given below.3 b) Remunerations to persons or entities actually domiciled outside the Republic, for temporary Decree Number 203 services rendered to persons or entities of the The Congress of the Republic of Guatemala, country; considering: c) Remunerations and expenses of foreign diplo- 8 The new legislation was prepared in the Consejo de Econ- matic agents and career consuls in Guatemala; omia, at the initiative and under the leadership of the Minister d) Obligations contracted in favor of institutions of Economy, Manuel Noriega Morales. At the request of the Minister, transmitted to the Board of Governors of the Federal of public law which, in application of special laws, Reserve System through the Department of State and the must be paid either in specie or in foreign cur- Inter-American Development Commission, two members of the Board's staff, Dr. Robert Triffin and Mr. David L. Grove, rencies; helped the Guatemalan authorities in the technical preparation and formulation of the projects. e) Securities issued either by the Government MARCH 1946 259 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN. BANKING LAWS AND REPORTS of the Republic, with previous authorization of tions it shall present to the Congress of the Re- Congress, or by the Bank of Guatemala, with pre- public duly supported proposals to determine or vious authorization of the Monetary Board, pro- modify the characteristics and denominations of vided that it be required by monetary policy in the metal coins. interest of the country; The printing of notes and the minting of dif) Deposits in foreign moneys, held in local visionary coins shall be made exclusively in the banks in accordance with the general regulations amounts and conditions ordered by the Monetary which the Monetary Board may issue on the matter Board, and only in the institutions, firms or mintwith the approval of the Executive Power; and, ing houses contracted for the purpose by the same g) Minor transactions effected by tourists and Board. travellers, which shall be subject to the regulations Illegal issues—Art. 7. Any printing of notes or to be issued by the Monetary Board, with the ap- minting of coins in forms or amounts not ordered proval of the Executive Power, in order to avoid by the Monetary Board shall make those who have the effective circulation of foreign moneys in the ordered or executed them liable to the responsiterritory of the Republic. bilities and penalties prescribed in the Penal Code. Legal tender—Art. 8. The notes and coins issued Chapter II by the Bank of Guatemala shall have unlimited circulation and legal tender throughout the na- The Monetary Issue tional territory. Inter convertibility—Art. 9. The Bank of Guate- Issue power—Art. 4. Only the Bank of Guatemala shall exchange, on demand and without any mala may issue notes and coins in the territory of charge, national notes and coins of any denomithe Republic, with the guarantees and limitations nation for national notes and coins of any other deestablished in this law and in the Organic Law of nomination. If for unforeseen reasons the Bank the Bank of Guatemala. should be temporarily unable to provide notes or No other person or entity, public or private, may coins of the denominations requested, it shall put into circulation notes, coins or any other objects comply with this obligation by delivering notes or documents which, in the opinion of the Moneor coins of the denominations which most approxitary Board, might circulate as money. mate those solicited. Any issues which violate this provision shall be Demonetization—Art. 10. The Bank of Guatenull and fraudulent. mala shall replace by new national notes or coins Illegal circulation—Art. 5. Any person, other the notes and coins so deteriorated through normal than the Bank of Guatemala, which circulates use that they have become inadequate for monetary notes, certificates, promissory notes or other docucirculation. Nevertheless, the Bank shall not be ments containing promise to pay in cash, to the obligated to exchange notes whose identification has bearer and at sight, or tokens, cards, pieces of become impossible nor those which have lost more paper or other objects, with the purpose of having than two-fifths of their surface. Nor shall it be them used as money, shall be punished, according to obligated to replace coins which cannot be identified the case, with the penalties provided for in the Penal or which show traces of filing, clipping or perfora- Code. tion. Such notes and coins shall be demonetized Monetary characteristics—Art. 6. The notes shall and withdrawn from circulation without compenhave the denominations, dimensions, designs, legsation. ends and other characteristics which the Monetary Art. 11. The Bank of Guatemala may call in for Board determines, and shall bear the signatures, in replacement the notes of any series or denominafacsimile, of the President and Manager of the tion which are more than 10 years old and the coins Bank of Guatemala and of the President of the which are more than 20. Court of Accounts. The denominations of the The notes and coins called in for replacement, in notes shall not be less than one-half a quetzal. accordance with this provision, shall remain legal Metallic coins shall have the weight, type, finetender for a period of one year calculated from ness, engravings and denominations determined by the date at which they are called in. After this the Congress of the Republic in accordance with period these notes and coins shall cease to be legal Article 119, clause 8, of the Constitution. To that tender and shall only be exchanged during the subend, the Monetary Board shall make to the Ministry sequent year, at par and without charges of any of Economy the recommendations which it deems kind, in the Bank of Guatemala and in the other pertinent in view of the availability of the metals, banking institutions qualified for that purpose their market price and the mint techniques. If the by the Monetary Board. When this second period Ministry of Economy approves such recommenda- 260 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN BANKING LAWS AND REPORTS is over, the notes and coins which have not been of the other currencies, shall be sterilized immediexchanged shall lose their value and be demone- ately in accordance with the system established in tized. the Organic Law of the Bank of Guatemala. The Bank of Guatemala may not return to cir- Parity of foreign currencies—Art. 18. The legal culation the notes and coins retired in conformity exchange parities of foreign currencies with relawith the present and the previous articles. tion to the quetzal shall be determined in ac- Issue costs and profits—Art. 12. All costs of print- cordance with the following bases: ing, minting and replacing currency and coin shall a) In the case of foreign currencies freely and be for the account of the Bank of Guatemala. effectively convertible either in gold or in currencies The amount of demonstrated decreases in the convertible in gold, the parity shall be calculated issues of notes and coin outstanding, due to loss, on the basis of the gold equivalent of these curdestruction or demonetization, shall be applied to rencies; and, the purposes determined in the Organic Law of b) In all other cases, the parity shall be calculated the Bank of Guatemala. on the basis of the respective current quotations in the New York or London market. Chapter III The Monetary Board shall determine and pub- The Gold Parity of the Currency lish the legal exchange parities of the foreign currencies which are of greatest importance in the Gold parity—Art. 13. The gold parity of the international transactions of the country. Whenquetzal is defined as fifteen and five/twenty-firsts ever doubts occur concerning the legal exchange (15-5/21) grains of gold, nine-tenths (9/10) fine, parity of currencies not included in these official equivalent to eight hundred and eighty-eight thoupublications, the same Board shall certify the resand, six hundred and seventy millionths (0.888,spective legal parity, at the request of any in- 670) of a gram of fine gold. terested party. Modification of parity—Art. 14. The gold parity The parities published or certified by the Moneof the quetzal may be modified only in the followtary Board shall have force of law and carry full ing cases: evidence in justice. a) In application of decisions emanating from international conventions on monetary stabilization, Chapter IV subscribed to and ratified by the Republic; b) To counteract the harmful effects of fluctua- The External Convertibility of the Currency tions of major amplitude in the gold prices of the Free convertibility—Art. 19. The Monetary articles which most affect the economy of the Board must assure free convertibility between the country; or, quetzal and foreign currencies, in accordance with c) To correct fundamental and persistent disthe provisions of this chapter and with the treaties equilibria in the balance of payments, related to disand conventions of monetary stabilization subparities between internal and external price and cost scribed to and ratified by the Republic. levels. Negotiation of gold and foreign exchange—Art. Art. 15. The modifications in the gold parity of 20. Only the Bank of Guatemala may negotiate the quetzal, by reason of any of the imperative cir- coined gold, gold bars and foreign exchange in the cumstances expressed in the preceding article, may territory of the Republic with any nonbanking be decreed only by the Congress of the Republic, person or entity. upon proposal of the Executive Power. The Bank of Guatemala shall effectuate the Art. 16. Any modification in the gold parity of negotiation of foreign exchange through the methe quetzal shall be adjusted to the international dium of the banks contracted and qualified for the obligations duly accepted by the Republic. purpose by the Monetary Board. The negotiation On the date of publication of the legislative de- of gold metal shall take place either directly or cree ordering the modification, there shall also be through the medium of the same qualified banks. published in the official gazette the reports which In consequence, nonbanking persons or enserved as a basis for the adoption of the decree. tities which hold, or come to hold, coined gold, Revaluation profits and losses—Art. 17. Profits gold bars or foreign exchange, may not negoor losses arising from any revaluation of the gold tiate them except with the Bank of Guatemala or or foreign exchange assets and liabilities of the the banks qualified by the Bank of Guatemala in Bank of Guatemala, as a consequence of future accordance with the provisions of the previous paramovements in the gold parity of the quetzal and graph. Only the following are excepted: MARCH 1946 261 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN BANKING LAWS AND REPORTS a) Operations transacted by foreign diplomatic shall include the margin corresponding to banking agents and career consuls in Guatemala, in the per- commissions and surcharges and, consequently, formance of their official functions; and, these rates shall be understood to be net and free of b) Minor exchange transactions of tourists and any commission or surcharge for the buyers and travellers, which shall be subjected to the regula- sellers. tions to be issued by the Monetary Board with the Art. 25. Other exchange operations, such as the approval of the Executive Power. purchase and sale of time bills, telegraphic or cable transfers, foreign notes and coin, and other inter- Penalties—Art. 21. Those who negotiate coined national transfers, shall be made at the rates mengold or gold bars and foreign exchange, in violation tioned in the preceding article, but the banks may of the provisions of the preceding article, shall be charge their clients the additional costs involved punished by the Ministry of Economy, upon request in the transaction, such as telegraphic or cable rates or hearing of the Bank of Guatemala, with fines and the interest applicable to the operation, inup to an amount equivalent to three times the imcluding interest on documents in transit. port of the illegal transactions, and, depending on Exchange procedures—Art. 26. The qualified the gravity of the violation, with the suspension or banks shall effectuate all purchases and sales of cancellation of their commercial licenses. gold and foreign exchange for the exclusive ac- Buying and selling of gold—Art. 22. The Bank count of the "Monetary Stabilization Fund" which of Guatemala shall be obligated to buy any gold the Bank of Guatemala must maintain in conformmetal which is offered to it, either directly or ity with the Organic Law of that institution. through the medium of the banks contracted and qualified for the purpose by the Monetary Board. In consequence, the banks shall be allowed to The Bank shall also be empowered to require any transfer at any time to the Bank of Guatemala the person or entity which possesses coined gold or gold gold and foreign exchange which they buy; and, bars to deliver it either to itself or to any of the in its turn, the Bank of Guatemala shall be allowed qualified banks, against payment of its equivalent to require the banks, at any time to transfer to it in national currency. the gold and exchange which they have bought. The Bank of Guatemala shall supply the demand The Monetary Board may, in either case, require of gold metal for artistic or industrial purposes, in that the transfers be made in telegraphic or cable conformity with the regulations to be dictated on form; in the case of time bills and of future exthe matter by the Monetary Board with the approval change, the Board may grant the banks the brief of the Executive Power. delays which it deems advisable for the carrying Such purchases and sales shall be made at the out of the respective transfers. rates and commissions mentioned in Article 24 of Art. 27. The Monetary Board may regulate, at this law. any time, the purchase and sale of time bills and of Buying and selling of foreign exchange—Art. 23. future exchange by the qualified banks, so as to The Bank of Guatemala shall be obliged to meet, avoid the taking of speculative risks on future through the medium of the banks contracted and fluctuations in international exchange. qualified for the purpose by the Monetary Board, Art. 28. In order to facilitate daily exchange any offer of or demand for, the currencies of the operations, the Monetary Board shall authorize the principal countries of importance in the balance of banks to retain, totally or partially, the exchange payments of the country, as long as such currencies bought from their clients, and to sell drafts against are freely utilizable in the international market. such exchange, provided that the total holdings of Such purchases and sales shall be made at the exchange do not exceed the maximum amounts rates and commissions mentioned in Articles 24 and which the Board shall determine with relation to 25 of this law. The Monetary Board may deter- the average of their sales of exchange during the mine the procedure which shall apply to the ac- preceding 12 months. Nevertheless, the total quisition of currencies not freely utilizable in the amount of such holdings of exchange by any bank international market, and the manner of their shall never be permitted to exceed 25 per cent of liquidation when their conversion in other free the bank's paid-in capital and surplus. currencies is not possible. The foreign exchange assets maintained by the Rates of exchange—Art. 24. The buying and banks against their foreign exchange liabilities shall selling rates of drafts and sight bills in the banks not be taken into account in the calculation of the shall be determined by the Monetary Board and limits mentioned in this article. may not differ by more than one per cent from the Art. 29. When the exchange retained by a bank legal parities established in Article 18 of this law. is insufficient to handle effectively its sales of foreign The rates determined by the Monetary Board exchange, the Bank of Guatemala shall transfer to 262 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN BANKING LAWS AND REPORTS the bank, at its request, the amounts needed for cally about the movement of all their foreign exthat purpose. change accounts, whether they be held for the banks Art. 30. Transfers of exchange from the Bank themselves or for their respective clients. of Guatemala to the banks, and from these to the The Bank of Guatemala shall be empowered to Bank of Guatemala, shall be made at the rates de- control the accuracy of the reports mentioned in this termined by the Monetary Board. Such rates shall article, through whatever inspections it deems necesnot differ by more than one-half of one per cent, in sary. either direction, from the legal parities. Neverthe- Chapter V less, there may be charged in addition the costs mentioned in Article 25, in case they should be Statistical Control applicable. Purpose—Art. 35. The Monetary Board shall Ris\s—Art. 31. The following risks shall be establish a system of statistical control of transacborne by the authorized banks: tions involving transfers of funds abroad from a) The risk of noncompliance of bills purchased Guatemala and from abroad to Guatemala, with the and of future exchange contracts; purpose of preparing estimates of the balance of b) The risk of nonreimbursement of foreign ex- payments of the country. change deposits by the banks' correspondents; and, Regulation—Art. 36. The system of statistical c) Any other risks of a typically commercial or control shall be established through regulations banking character. issued by the Monetary Board and approved by the Executive Power. On the other hand, the risk of modifications in These regulations shall determine penalties for the legal parity of the foreign currencies, or of those who violate the provisions relative to the fluctuations in their daily exchange quotations, shall statistical control. Such penalties may consist of not concern the banks in any way, provided that fines up to 50 per cent of the amounts concealed they maintain their total holdings within the limits or altered and, depending on the gravity of the determined by the Monetary Board. These risks, violation, of suspension of the commercial licenses. whether of profit or of loss, shall be borne by the These penalties shall be applied by the Ministry Bank of Guatemala. of Economy upon request of the Bank of Guatemala. Exchange profits and losses—Art. 32. The profits or losses occasioned by modifications in the legal parity of foreign currencies shall be entered in the Second Part books of the Bank of Guatemala in accordance with Emergency Regulation of International Transfers the special system established in the Organic Law of that institution. Profits and losses arising from Chapter VI fluctuations in the daily exchange quotations shall be credited or debited to the profit and loss account Establishment and Purpose of the Emergency of the Bank of Guatemala. System Art. 33. When the differences between the buy- System of exchange restrictions—Art. 37. The ing and selling rates applying to operations between second part of this law, starting with the present the banks and the public, and the buying and selling chapter, establishes an Emergency System of interrates applying to operations between the Bank of national transfers, which limits the application of Guatemala and the banks, exceed the amount necesthe provisions of Chapter IV relative to the free sary to defray the normal costs and profits of the external convertibility of the national currency. banks on their exchange operations, exclusive of the This system may be applied only in periods of costs which they may charge to their clients in aceconomic emergency, the existence of which shall cordance with Article 25, the excess profits shall be decreed in the form and conditions provided for belong to the Bank of Guatemala and shall be in this same law. transferred to it monthly by the banks. Establishment of exchange restrictions—Art. 38. The Monetary Board shall determine the maxi- The Emergency System of international transfers mum amounts of costs and commissions which may may be put into effect by decree of the President of be retained by the banks. the Republic in Council of Ministers, upon request Information—Art. 34. The qualified banks must of the Monetary Board, and only in the following report daily to the Bank of Guatemala all exchange cases: operations which they have transacted. The Monetary Board may, in addition, require a) In application of decisions or recommendathe banks to inform the Bank of Guatemala periodi- tions emanating from international conventions on MARCH 1946 263 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN BANKING LAWS AND REPORTS monetary stabilization, subscribed to and ratified law. Their use is especially prohibited as a perby the Republic; and, manent measure tending to elude fundamental ecob) In order to maintain the stability of the cur- nomic readjustments required by lasting changes rency in periods of temporary disequilibria in the in the comparative levels of prices and costs of balance of payments: production at home and abroad. Art. 43. The application and administration of i) which have reduced the net reserves of the exchange restrictions shall conform to the inter- Monetary Stabilization Fund to less than 40 per national treaties and conventions subscribed to and cent of the annual average of total sales of exratified by the Republic and shall avoid: change during the three preceding years; or, ii) which currently produce a persistent drain- a) Any discriminatory measures prejudicial to ing of such reserves at a rate greater than 25 per the good economic and political relations of Guatecent annually and not attributable to seasonal or mala with foreign nations; and, transitory factors. b) Any action prejudicial to the permanent interests of the Nation in the development of inter- Art. 39. The Monetary Board may exclude from national trade and cooperation. the calculation of the reserves in the Monetary Stabilization Fund, holdings of blocked, or not freely These restrictions do not refer to legitimate difusable, currencies; but in this case the Board shall ferentiations in the treatment of distinct categories be obliged to exclude simultaneously the sales of of merchandise, services and capital movements, on such currencies from the calculation of the average generally accepted bases; nor to inevitable discrimof total sales in the preceding three years, when es- inations necessary to defend the monetary structure tablishing the proportion between reserves and sales of the Republic against the consequences resulting of exchange for the purposes mentioned in this law. from previous action by other countries; nor to the Art. 40. Similarly, the exchange restrictions pro- measures necessary for the defense of the national vided for in this law for the Emergency System, or economy. other restrictions which the International Monetary Administration—Art. 44. The Emergency Sys- Fund may recommend, may be put into force at any tem of international transfers shall be administered time by decree of the President of the Republic, by the Exchange Department of the Bank of Guateissued in the manner prescribed in Article 38, in mala, in conformity with the regulations issued by any one of the following cases: the Monetary Board with the approval of the Execua) For the sale of currencies declared scarce by tive Power. the International Monetary Fund; The Monetary Board shall be in charge of the b) For the sale of currencies the net holdings of general direction of the Exchange Department, which in the Bank of Guatemala have been reduced and shall decide all appeals against decisions of the to less than 40 per cent of the average sales of such same Department, whether executive or interprecurrencies during the three preceding years, or tative in nature. have fallen by more than 25 per cent of their pre- Enforcement—Art. 45. Custom houses and postal vious level within a period of 12 months; provided offices must collaborate with the Bank of Guatethat in either case the currencies in question cannot mala to assure the efficient enforcement of the be procured by the Bank of Guatemala through the Emergency System of international transfers. normal conversion into such currencies of other Before authorizing the dispatch of import or international reserves at the disposal of the Bank; export merchandise, they shall require proof of and, the declarations relating to the operation, as well c) In application of special decisions or recom- as the documents corresponding to the acquisition mendations of the International Monetary Fund. or negotiation of the respective foreign exchange. Similarly, they must forward periodically to the Art. 41. All decrees of the Executive Power Exchange Department statistical records of merwhich establish exchange restrictions, in the cases chandise dispatched and other data related to the provided for in this second part of the law, shall be control. subject to the requirements established in Article 16 The Monetary Board, with the approval of the of this same law. Ministry of Finance, shall regulate the provisions of Purposes—Art. 42. The exchange restrictions au- this article, and shall be empowered to establish thorized by the Emergency System may not be a special system for imports and exports under applied for purposes alien to those specified in the consignment. 264 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN BANKING LAWS AND REPORTS Chapter VII of international transfers, and for the protection of the national currency. Concentration of International Reserves Compulsory sale of incoming exchange—Art. 52. Declarations—Art. 46. All persons or entities Similarly, the Monetary Board shall be empowered which possess or come into possession of foreign to demand at any time the sale to the Bank of currencies or coin, or deposits in such currencies, Guatemala, through the medium of the qualified either in the country or abroad, shall be obliged to banks, of the foreign exchange proceeds from exdeclare their amount to the Exchange Department ports or from any other source of easy control, subof the Bank of Guatemala or to any of the banks ject to the exceptions mentioned in Article 70 of qualified by the Monetary Board. These declarathis law. tions shall be made within the 10 days following This requirement may be made to extend either the respective acquisition, and shall be considered to the totality of the exchange acquired by any strictly confidential. person or entity, or to percentages or ad hoc valua- The Monetary Board may exempt from this tions established by the Board itself, and which may obligation holdings of foreign exchange in minor vary according to the class of operations in which amounts, determining the limits of such exempthe acquisition of the exchange originates. tions in accordance with circumstances at the time. Art. 47. All persons or entities, before utilizing or transferring the moneys, currencies or deposits Chapter VIII referred to in the preceding article, must make a Negotiation of International Reserves previous declaration to the Exchange Department of the Bank of Guatemala or to any of the qualified Three exchange markets—Art. 53. The Bank of banks, except in the case of ordinary operations of Guatemala shall apply the international reserves current character of the banks themselves, which which it acquires to meeting the demands of foreign shall be governed by the permanent system estab- exchange for payments and remittances abroad. lished in Article 34 of this law. The exchange required for essential payments Art. 48. The declarations required in Articles 46 and remittances shall be sold in the conditions and 47 shall be accompanied by such data and evi- established in the normal exchange system. dence as the Exchange Department may require The exchange required for nonessential payconcerning the amount, nature and other conditions ments and remittances shall be distributed through of the operation. an auction market. Penalties—Art. 49. Those who violate the provi- The exchange, the sale of which to the Bank of sions of Articles 46, 47 and 48 shall be punished Guatemala can not be demanded in accordance with fines up to three times the amounts concealed with this law, or is not required by the Monetary or transacted surreptitiously and, depending on Board, may be negotiated in a free exchange the gravity of the violation, with the suspension or market. cancellation of the commercial licenses. These fines Compulsory sales by the Ban\ of Guatemala— shall be applied by the Ministry of Economy upon Art. 54. The Bank of Guatemala shall be oblirequest of the Bank of Guatemala. gated to offer currently for sale the total of the Art. 50. The Exchange Department shall anno- foreign exchange that it currently acquires, with tate and classify the declarations mentioned in the the following exceptions: preceding articles, in order to use them in detera) The Bank may retain temporarily the amounts mining the exchange policy of the country. It shall necessary in order to ease seasonal or purely acciinvestigate the accuracy of such declarations by the dental fluctuations in the inflow and outflow of means at its disposal, and solicit the application of exchange over the course of the year; the pertinent penalties in cases of false declarations b) The Bank may similarly retain temporarily or failure to make declarations. the whole or part of extraordinary acquisitions of Holdings of foreign exchange by individuals— exchange resulting from borrowings abroad, in Art. 51. The Monetary Board may at any time: order to assure the best utilization of the exchange a) Prohibit, totally or partially, or submit to over the period of the loan; and, previous authorization, the maintenance of de- c) When the net reserves of the "Monetary posits by individuals, either abroad, or in foreign Stabilization Fund" are less than 50 per cent of currencies within the country; and, the average sales of exchange during the three preb) Subject such authorization to the require- ceding years, the Bank may retain the amounts ments and conditions which it deems necessary for necessary for the gradual reconstitution of this perthe efficient application of the Emergency System centage over a period of not less than 12 months. MARCH 1946 265 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN BANKING LAWS AND REPORTS Chapter IX shall determine whether such services must be considered as essential, and which, if it deems them Exchange Market for Essential Payments so, shall determine the corresponding amounts of Essential transfers—Art. 55. Available gold and exchange. The decisions of the Exchange Departforeign exchange of the Bank of Guatemala shall ment may be appealed to the Monetary Board. be used preferably for the sale of exchange required Only the amounts approved by the Exchange by the following essential payments and remit- Department, or by the Monetary Board, in accordtances: ance with the provisions of the preceding paragraph, shall enjoy access to the exchange market for a) Payments for indispensable and nondeferrable essential payments. merchandise of general consumption and produc- Payments on foreign investments—Art. 60. The tion goods; persons or entities interested in the payments reb) Indispensable payments and remittances of ferred to in clauses (d) and (e) of Article 55, and the State and of official institutions; which wish to take advantage of the guarantees c) Payments abroad for services, in the amounts established in Article 56, must register the reindispensable to meet essential needs or to mainspective capitals or investments in the Exchange tain the regular functioning of activities useful to Department, which may refuse their registration the public or the economy in general; when the investment under consideration is in d) Contractual payments abroad for interest opposition to the needs of economic policy or to and amortization of loans or other obligations; and, national interests. The decision of the Exchange e) Payments of dividends, profits or amortiza- Department may also, in this case, be appealed tion of foreign capital permanently invested in the before the Monetary Board. country, in amounts representing up to 15 per Only the capitals registered in the Bank of Guatecent per year in at least five years out of any ten, mala in accordance with the preceding paragraph and up to 5 per cent annually in any of the other shall have access to the exchange market for essenyears of the same decade. These percentages shall tial payments, and only up to the maximum be calculated on the amount of the verified investamounts or percentages which the Monetary Board ments. shall determine, in a general manner and without Guarantees—Art. 56. The exchange destined to any discrimination. meet the essential payments specified in the pre- Bookkeeping prerequisites—Art 61. No considceding article shall be sold regularly and without eration shall be given, for the application of Articles restrictions by the Bank of Guatemala, through the 55 and 56 of this law, to declarations of debts or medium of the qualified banks, at the rates estabrequests for remittances presented by persons or enlished in Articles 24 and 25 of the present law, protities which do not keep in the country full legal vided that the conditions established in this chapter accounting of their operations. are complied with. Essential imports—Art. 57. The Monetary Board shall determine the merchandise to which clause Chapter X (a) of Article 55 is applicable and shall put on sale the amounts of foreign exchange which shall The Auction Market assure their normal importation. The Board may amplify or restrict the list of Exchange for nonessential transfers—Art. 62. such merchandise, in accordance with the situa- The balance of the foreign exchange which retion of the exchange market. mains available after meeting the essential pay- Official payments—Art. 58. The Exchange De- ments referred to in the preceding chapter, shall partment shall qualify and authorize the requests be assigned to meeting payments abroad for nonfor exchange destined for the payments and re- essential imports and deferrable imports, and for mittances to which clause (b) of Article 55 is other nonessential remittances which the Monetary applicable; but, when it deems that the exchange Board may determine. is required for nonessential purposes, it shall re- Sale of licenses by auction—Art. 63. Such foreign port the matter to the Monetary Board. exchange shall be sold at the rates established in Payments for services—Art. 59. The persons or Articles 24 and 25 of the present law, and shall be entities which receive the services mentioned in distributed among the buyers through periodic pubclause (c) of Article 55, and which wish to take lic auctioning of exchange licenses, to be effectuated advantage of the guarantees established in Article by the Bank of Guatemala, at least once a week. 56, must submit previously the respective contracts Importers shall indicate freely the rate which or programs to the Exchange Department, which they are prepared to pay in each auction and the 266 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN BANKING LAWS AND REPORTS amounts of exchange which they request at that thorized considerably exceed the amount of exrate. change offered for sale. The Bank of Guatemala shall award to the high- Surplus exchange—Art. 67. If during the course est bidders the exchange put on sale, or a larger or of three successive auctions there remains a surplus smaller amount, according to what it deems desir- of exchange in any one auction category, in spite of able in order to avoid sudden fluctuations in the the fact that the quotation of the respective rate auction rate. has fallen to zero, the Bank of Guatemala must Direct sale of licenses—Art. 64. Instead of offer- count such surplus exchange as available exchange ing the licenses at auction in accordance with the and distribute it, together with other future surprovisions of the preceding article, the Monetary pluses, among the remaining sale categories. Board shall be empowered, if it deems it preferable, Auction procedures—Art. 68. Auctions shall be to determine directly the rates to be charged for the carried out in the presence of the Director of the concession of licenses. In this case, the Board must Exchange Department, who shall award the establish the level of these rates so as to approxi- licenses and certify the results of the auction. mate the results of the auction and to equilibrate In case of unusual results which lead to suspicion demand with supply. The Board must similarly re- of collusion or fraud, he shall temporarily suspend view the rates periodically, and at least once a week, the award of licenses and shall immediately reon the basis of the disequilibria which manifest quest an extraordinary session of the Monetary themselves currently between the available ex- Board in order to report the situation. The Board change and the demands subject to licenses. may annul the respective auctions and must com- Obtaining of licenses—Art. 65. Whatever the municate its decision within the 48 working hours procedure adopted, the only condition which shall following the auction. exist and which may be imposed in order to obtain The Director of the Exchange Department may, the exchange licenses shall be the payment of the with the approval of the Manager of the Bank, rates determined by the Monetary Board or result- designate an officer of the Bank as his delegate to ing from the auction. exercise the functions and powers mentioned in Expiration of licenses—Nevertheless the exchange this article. licenses shall lapse in case they are not utilized for Proceeds of exchange licenses—Art. 69. The prothe purpose for which they were granted, within ceeds of the exchange licenses shall be added to the the normal period corresponding to the operation. other profits of the Bank of Guatemala. This period may be extended by the Exchange Department in justified cases. Chapter XI Classification of auction exchange—Art. 66. The Monetary Board may, if it deems it advisable, clas- The Free Exchange Market sify the requests subject to the auction system into Free exchange — Art. 70. Incoming exchange groups determined upon generally accepted bases, from the following sources shall be considered as related to the degree of essentiality and urgency of free exchange: the operations, and may distribute the offers of exchange among these groups, with the object of a) Salaries and expenses of foreign diplomatic assuring an adequate distribution of available ex- agents and career consuls in Guatemala, and of change in accordance with the real needs of the representatives of institutions or agencies of intereconomy. The distribution must be made in such national cooperation; a way as to avoid having the rates corresponding to b) Foreign capital entering the country for permore essential or more urgent operations exceed manent or temporary investment; those applicable to less essential or less urgent opera- c) The repatriation of Guatemalan capital intions. vested abroad; Buying limits—If the Board deems it necessary in d) Scarce or occasional exports to be determined order to avoid an excessive concentration of sales by the Monetary Board; among a few groups of buyers, it may also limit the e) The difference between the percentages or amounts of exchange which may be granted to ad hoc valuations mentioned in Article 52, paraany one person or entity, to a percentage of pur- graph 2, and the actual exchange proceeds; and, chases abroad during a previous representative f) Other incoming exchange, the sale of which period. This percentage must be uniform for all to the Bank of Guatemala is not demanded by buyers belonging to the same auction group, and the Monetary Board. must be established in such a way that the global Such foreign exchange may be freely negotiated sum of the maximum individual amounts thus auin accordance with the provisions of this chapter, MARCH 1946 267 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN BANKING LAWS AND REPORTS provided that its holder does not prefer to retain change to any amount which it deems desirable it abroad. to cover its exchange needs. Purchase and sale of free exchange by individuals —Art. 71. The holders of free exchange may sell it Chapter XII to the Bank of Guatemala or to any qualified bank. The only prerequisite applying to such transactions Control of Capital Movements shall consist of a declaration indicating: a) The Capital Flight—Art. 76. Whenever it be necesprofession or business of the seller; b) the amount sary in order to combat a characteristic flight of of exchange negotiated; and c) the origin of the capital which threatens to reduce the international exchange. reserves of the Monetary Stabilization Fund to the The purchasing bank shall pay for the exchange levels or in the proportion indicated in Article 38, at the current buying rates and in addition shall the exchange restrictions mentioned in the second deliver to the sellers a "certificate of free exchange" part of this law may be put into force, totally or to the bearer, in which the amount of the negotiated partially, by decree of the President of the Republic exchange shall be recorded. in Council of Ministers, upon request of the Mone- Art. 72. The certificates of free exchange re- tary Board. ferred to in the preceding article shall give the In this case, the exchange restrictions shall be holders the right to buy, in the Bank of Guatemala applied only to capital movements, without affector in any of the qualified banks, the amount of ex- ing other international transfers of a current charchange expressed in such certificates, at the current acter. selling rates at the time of purchase of the certifi- Nevertheless, in case the general exchange restriccates, provided that they be presented within the tions come to be put into force by reason of a reduceight working days following the date of their tion of international reserves to the levels or in the issuance. proportion indicated in Article 38 of this law, capi- The Monetary Board may extend this period in tal movements shall be controlled through the proa general and uniform manner. When the respec- cedures applicable in a general manner to all intertive period has elapsed, the certificate shall expire. national transfers. The exchange certificates may be freely negoti- Abnormal capital inflow—Art. 77. Whenever it ated between any interested persons or entities, at be indispensable to combat a pronounced inflathe prices determined by their supply and demand: tionary movement, the entry of foreign capital seekbut the Monetary Board may order that such opera- ing investment in the Republic may be subjected to tions be transacted only through the medium of the authorization, and its free conversion into national Bank of Guatemala or of the qualified banks, al- currency may be suspended, by decree issued by the ways at the prices determined by supply and de- President of the Republic in Council of Ministers, mand. upon request of the Monetary Board. Art. 73. Holders of certificates who make use of In this case, the Monetary Board may demand their right to purchase foreign exchange at the cur- that any sum which exceeds certain maximum limrent rate must present to the Bank of Guatemala, or its, fixed by the Board itself, be deposited with the to any of the qualified banks, a declaration indi- Bank of Guatemala, in a special account, until the cating: a) The profession or business of the buyer; authorization for conversion into quetzales and inb) the amount of exchange purchased; and c) the vestment in the country be granted or denied. proposed destination of the funds. Sums thus deposited may be withdrawn from the Ban\ing negotiation of free exchange—Art. 74. country at any time and in the currency of The Monetary Board may simplify the procedure origin by their respective depositors. established in Article 72 when a bank simultaneously acquires from the seller the free exchange Chapter XIII and the respective certificate. The Board may Termination of Exchange Restrictions similarly grant, in a general and uniform manner, periods additional to the eight days referred to in Relaxation of restrictions—Art. 78. The Monethe article mentioned, for certificates of free ex- tary Board may, at any time, in accordance with change corresponding to operations effected by the the monetary situation of the country, relax totally banks among themselves, and for certificates which or partially any exchange restrictions previously the banks themselves may retain in order to attend decreed in conformity with the provisions of the to their sales of free exchange. second part of this law. Free acquisition of certificates—Art. 75. Any per- Termination of restrictions—Art. 79. Similarly, son or entity may acquire certificates of free ex- the Monetary Board may, at any time, officially and 268 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN BANKING LAWS AND REPORTS completely terminate all exchange restrictions, and version Law issued by legislative Decree No. 1379, restore the free external convertibility of the cur- dated May 2, 1925, is abrogated, together with all rency, by decree of the Board itself published in the provisions regulating the monetary system of the official gazette. Republic. The Monetary Board shall be obligated to termi- Decree No. 66 of the Revolutionary Council of nate officially all exchange restrictions, through Government, and all laws, decrees, resolutions and the procedure indicated in the preceding paragraph, provisions which are in opposition to the prescripupon discontinuance of the circumstances which tions of this law are hereby repealed. have motivated the introduction of such restrictions. In any case, the Monetary Board must terminate all Chapter XV restrictions decreed in order to prevent or combat Transitory Provisions the effects of scarcity of exchange, whenever the auction rates of exchange and the quotations of Interpretation of existing contracts—Art. 85. free exchange have fallen to, and remained at, zero Contracts concluded previous to the entering into .during a period of 12 consecutive months. force of this law, and which stipulate payment either in gold, or silver, or foreign currencies, shall Third Part be executed and liquidated exclusively in quetzales, the conversion into quetzales being made at the General Provisions legal parity established in the present law. The Chapter XIV provision of this article shall not apply to the contracts and obligations excepted under Article 3. Final Provisions Trading in precious metals—Art. 86. The existing legal and regulatory provisions concerning the Required information—Art. 80. The banks, exexportation, importation, holding and negotiation porters, importers and, in general, persons or entiof gold and other precious metals shall continue ties which effectuate transactions involving interin force, in so far as they do not contradict the national transfers, shall be obligated to give free prescriptions of this law. access to their books and accounting vouchers to The Bank of Guatemala shall exercise, as long the inspectors appointed by the Monetary Board or as such legislation continues, the functions and by the Exchange Department. powers attributed in this respect to the Central The Ministry of Economy, at the request of the Bank of Guatemala and to the Monetary and Bank of Guatemala, may punish those who refuse Banking Department. to yield their books and vouchers, with fines up to Effective date—Art. 87. The present decree shall 1,000 quetzales and, depending on the gravity of enter into force 10 days after its publication in the the violation, with the suspension or cancellation of official gazette. Nevertheless, the provisions of this their commercial licenses, in addition to other penallaw which confer attributions, functions and powers ties prescribed in this law. to the Bank of Guatemala and to the Monetary Art. 81. Official departments must make avail- Board, shall enter into force three days after the able to the Bank of Guatemala the data and inforresolution in which the Executive Power shall mation which it requests for the fulfillment of this declare the Bank of Guatemala as established. law. The present decree shall be sent to the Executive Fiscal exemptions—Art. 82. National monetary Power for its publication and enforcement. specie of legal tender shall be exempt from any Given in the Congressional Palace: in Guatekind of taxes and duties, fiscal or municipal. mala City, on the twenty-ninth of November, nine- Similar exemption shall apply to all operations teen hundred and forty-five, second year of the of monetary conversion or exchange effectuated in Revolution. accordance with this law, whether they concern the exchange of some national species for others, the JULIO BONILLA G., President payment of checks against banking deposits, the exchange of gold or foreign exchange for national JULIO VALLADARES C, P. ESPANA R., Secretary Secretary currency, or the acquisition and alienation of documents implying international transfers. National Palace: Guatemala City, tenth of De- Amendments—Art. 83, Modifications of the pres- cember, nineteen hundred and forty-five. ent law shall require for their approval the con- Publish and execute. current vote of two-thirds of the representatives JUAN JOSE AREVALO. forming the Congress of the Republic. The Minister of State for Economy and Labor, Abrogation—Art. 84. The Monetary and Con- M. NORIEGA M. IMARCH 1946 269 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN BANKING LAWS AND REPORTS Decree Number 215 c) Safeguard the international economic equilibrium of the country and the competitive position The Congress of the Republic of Guatemala, of national producers in the domestic and foreign considering: markets. That the issue of Decrees No. 203 and 212 pre- Means of action—Art. 5. For the fulfillment of supposes the creation of an autonomous State these objectives and duties, the Bank shall count Bank; and that, on the other hand, the present on its moral suasion, on its legal powers for the economic conditions of the Nation demand a radical regulation of money, exchange and credit, and on reform in the banking and credit system; the fullest support and cooperation on the part For that reason, Decrees: the following of the State and all its agencies. In consequence the State guarantees to the Bank Organic Law of the Bank of Guatemala the independence and autonomy necessary for Title I the effective fulfillment of its objectives. International responsibilities—Art. 6. The Bank Creation and Object shall act in conformity with the international mone- Creation—Art. 1. There is hereby created a State tary and banking agreements subscribed to and Bank under the name of "Bank of Guatemala". ratified by the Republic. The Bank shall function as an autonomous insti- It shall legally represent the State in all transactution, and shall be governed by the provisions of tions, negotiations and decisions resulting from this law and by the Monetary Law. such agreements, subjecting its action to the perti- Purpose—Art. 2. The principal object of the nent legal provisions and to the instructions which Bank of Guatemala shall be to promote the estab- the Government may impart to it in the cases lishment and the maintenance of the monetary, ex- foreseen in this law and in the Monetary Law. change and credit conditions most favorable to the Domicile—Art. 7. The Bank shall have its domiorderly progress of the national economy. cile in the City of Guatemala. Art. 3. In the domestic sphere the Bank especially must: Title II a) Adapt the means of payment and credit Guarantee Fund and Profits policy to the legitimate needs of the country and to the development of productive activity; and pre- Guarantee jund—Art. 8. The Bank shall be vent any inflationary, speculative and deflationary established with an initial Guarantee Fund of five tendencies detrimental to the general interests; hundred thousand quetzales (0500,000.00), which b) Promote the liquidity, solvency and sound shall be contributed by the State. operation of the national banking system, and a dis- Art. 9. The Guarantee Fund shall be used to tribution of credit adequate to the general interests cover any possible losses which the Bank may of the national economy; and, suffer in the course of its legal operations, except c) Effect the necessary coordination between the those resulting from modifications in the legal various economic and financial activities of the parities of the currencies. State which influence the monetary and credit Use of net profits—Art. 10. The annual net profits market, and especially between fiscal and monetary of the Bank, after judicious amortization of assets, policy. shall be used in their entirety to increase the Guarantee Fund, until this Fund reaches a sum equiva- Art. 4. In the international sphere the Bank eslent to 10 per cent of the total assets of the Bank, pecially must: provided that this percentage exceeds 500,000 a) Maintain the external value and convertibility quetzales. In making this calculation, there shall of the national currency, in conformity with the be subtracted from assets that part of the Monesystem established in the Monetary Law; tary Stabilization Fund which is maintained in b) Administer the international monetary re- metallic gold, in sight deposits abroad and in other serves of the Nation and the system of international equivalent international reserves, disposable at transfers, with the object of protecting the country sight and at par. from undue monetary pressures, and of moderating Profits originating in modifications in the legal —by means of an adequate monetary, banking and parities of the currencies shall not enter into the credit policy—the injurious effects of seasonal, computation of net annual profits. cyclical or erratic disequilibria of the balance of Fund for the regulation of the bond market— payments, upon money supply, credit, prices and Art. 11. Whenever the Guarantee Fund reaches the economic activities in general; and, higher of the two limits mentioned in the preceding 270 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN BANKING LAWS AND REPORTS article, the balance of net annual profits shall be a) The President of the Republic shall appoint used in its entirety for the constitution or increase two titular members and two alternates for sixof a "Fund for the Regulation of the Bond Market". year periods, from a list of six persons submitted This Fund shall operate in the manner and for by the other titular members of the Board. The the ends specified in this law. titular members designated by the President of Revaluation profits and losses—Art. 12. Any the Republic shall exercise, in accordance with their profits resulting from possible modifications in the appointment, the functions of President and Vice legal parities of the currencies, in conformity with President of the Monetary Board and of the Bank the pertinent provisions of the Monetary Law, of Guatemala; shall be used immediately for the amortization of b) The Minister of Finance shall be an ex officio the "Consolidation Bond of Subsidiary Issues", men- member of the Monetary Board and shall have tioned in Article 58, clause (e), of the present law. authority to delegate his functions, when he deems Once said bond has been cancelled, these profits it advisable, to one of the high officers of the shall be entered and shall accumulate in a liability Ministry; account denominated "Liability Account of Ex- c) The Minister of Economy shall also be an change Revaluations" whose resources shall not be ex officio member of the Monetary Board and shall drawn upon by the Bank. have authority to delegate his functions, when he Art. 13. Any losses resulting from modifications deems, it advisable, to one of the high officers of in said legal parities shall be entered and shall the Ministry; accumulate in the same manner in a parallel asset d) The Superior Council of the Autonomous account, denominated "Asset Account of Exchange University of San Carlos of Guatemala shall desig- Revaluations". nate a titular member and an alternate for a six- At the close of each financial period, a balance year period, from a list of three persons for the shall be struck between the two exchange revalu- titular, and another list of three for the alternate, ation accounts, and only the net difference shall submitted by the Board of Directors of the Faculty appear in the Bank's balance sheet under the gen- of Economics; and, eral heading "Exchange Revaluations Account", e) The private banks which operate in the Reunder either liabilities or assets, according to public shall elect annually a titular member and whether there has been net profits or net losses. an alternate for a period of one year. For the In consequence, these profits or losses shall not election of these members, each of the private enter into the computation of the net profits or banks shall have a single vote; and preferably they losses of the financial period. shall elect one of their directors, managers or Profits from reductions in the monetary issue— assistant managers. Art. 14. The amount of any reduction in outstand- Art. 16. Alternates shall serve in the place of ing notes and coin due to losses, destruction or titular members in case of their absence or temdemonetization of monetary specie, determined in porary incapacity, and preferably the alternate accordance with the pertinent provisions of the named in the same manner as the absent titular Monetary Law, shall be applied either to the amorti- shall serve in his place. zation of the Consolidation Bond of Subsidiary Nevertheless, the alternate of the President of Issues, or to the reduction or cancellation of the the Board shall substitute for him only in his net balance of the Exchange Revaluations Ac- capacity as member of the Board but not as Presicount, or to the general profits of the Bank, dent. according to the resolution adopted on the matter Art. 17. The alternates, when not substituting for by the Monetary Board. the titulars, may attend the sessions of the Board, with the right to be heard but not to vote. Title III Renewals—Art. 18. The terms of the President Direction and Administration and Vice President of the Bank and of the member designated by .the autonomous University of San Carlos of Guatamala shall be staggered so as to Chapter 1 provide for a renewal every other year. For this The Monetary Board purpose, the initial appointment of the President shall be made for a period of two years, that of Composition—Art. 15. The Bank of Guatemala the Vice President for a period of four years, and shall function under the general direction of the only that of the member designated by the Autono- Monetary Board, which shall be composed of six mous University of San Carlos of Guatemala for members, designated in the following manner: the normal term of six years. MARCH 1946 271 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN BANKING LAWS AND REPORTS The same terms shall also apply to the respective h) Persons who have been condemned for ofalternates. fenses which imply lack of probity; Art. 19. Appointments of members of the Mone- i) Persons who, for any reason whatsoever, are tary Board to replace members whose terms have legally incapable of discharging said functions. expired must take place within the 30 days prior to Art. 23. When any of the disqualifications menthe expiration of such term. Titular members and tioned in the preceding article exists or occurs, the alternates shall be eligible for reappointment. appointment or authority of the affected member Vacancies—Art. 20. In case a vacancy is created shall lapse, and action shall be taken to replace through the death, resignation, incapacity, removal him in the manner provided for in the case of a or other permanent inability of a titular member or vacancy. The finding and declaration of disqualialternate to discharge the duties of the office, there fixation shall be made by the Monetary Board. shall be designated a new titular member or alter- Notwithstanding such disqualification, any acts or nate, as the case may be, to complete the term of contracts authorized by the member prior to his the vacating member. disqualification shall not be invalidated, either with This designation shall be made in the form respect to the Bank of Guatemala or with respect provided for the designation of the vacating memto third parties. ber. Removal—Art. 24. A member of the Monetary Eligibility—Art. 21. The President and Vice Board shall be removed only by resolution of the President must be persons of unquestioned integ- President of the Republic, upon judiciary sentence rity and recognized training and competence in pronounced in summary indictment by the Court economic and financial matters. For the designaof Accounts, and for the following reasons: tion of the other titular members and alternates of the Monetary Board, preference shall be given to a) If any one of the disqualifications mentioned persons of recognized integrity and competence in in Article 22 of this law appears, and the Monetary banking, commercial, agricultural, pastoral or in- Board fails to act in accordance with Article 23; dustrial matters. b) If the member is responsible for acts or opera- Disqualifications—Art. 22. None of the following tions of a fraudulent or illegal character, or manimay be titular members or alternates of the Mone- festly opposed to the aims or interests of the institary Board: tution; c) If final sentence is passed upon the member a) Persons less than 25 or over 70 years of age; in a criminal prosecution. In the case of detention b) Leaders of organizations of a political charawaiting trial, he shall be incapacitated for the disacter, except that this prohibition shall not apply charge of his office and shall be replaced by the to ex officio members and their delegates; alternate. c) Persons occupying remunerated public positions or offices, whether by popular election or by The denunciation of a member shall be made appointment, in any agency of the State or the before the Court of Accounts by the Superintendent municipalities, except positions of an educational of Banks or by any titular or alternate member of character; this prohibition shall not extend to the the Monetary Board. Ministers of Finance and Economy and their dele- Sessions—Art. 25. The sessions of the Monetary gates; Board shall be called by the President, by the Vice President when serving in his place, or by any d) Directors, managers or employees of other member with the approval of a majority of the banks, except in the case of titular and alternate Board, and shall be convened at least once a week. members elected by the banks in accordance with The Board shall meet validly with the attendance clause (e) of Article 15; of at least five members, and its resolutions shall be e) Persons related within the fourth degree of adopted by a simple majority of those present, exconsanguinity or second degree of affinity, to the cept when the law requires a special majority. President of the Republic, the Minister of Finance Advisors—Art. 26. The Manager, the Superinor the Minister of Economy; tendent of Banks, the Director of the Department f) Two or more persons related within the fourth of Economic Research and the Director of the Exdegree of consanguinity or the second degree of change Department shall participate in the Board's affinity; or belonging to the same company; or deliberations, in the capacity of permanent adforming part of the same directorate in a corpora- visors, with the right to be heard but not to vote. tion; Art. 27. When the Board deems it advisable, it g) Insolvent or bankrupt persons who have not may invite to participate in its deliberations, with been legally restored to solvency; the right to be heard but not to vote, any other 272 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN BANKING LAWS AND REPORTS qualified person, and especially its alternate mem- h) Determine, modify and publish the rediscount bers and the representatives of the other financial and interest rates of the Bank of Guatemala; institutions of the State. i) Regulate the rediscount and credit services of Remuneration—Art. 28. The presence of titular the Bank of Guatemala, and determine the general and alternate members and of advisors at the conditions and limits of the various operations of sessions of the Board shall entitle them to a the Bank authorized in this law; fixed fee, determined in regulations of the Bank j) Designate the officers and employees of the with the approval of the Executive Power. Re- Bank who shall be empowered to authorize specific muneration may not take the form of commissions, operations, and determine the limits and conditions or be related to the earnings of the institution. within which they may exercise such authority; Persons not connected with the institution and k) Determine and modify the legal reserves of domiciled outside the capital shall be reimbursed the banks, in accordance with this law, and regulate for traveling expenses when invited to a session in clearings between the banks; an advisory capacity. 1) Determine the maximum rates of interest on Nonattendance of members having a personal the passive and active operations of the banks, and interest—Art. 29. Whenever the Board's delibera- regulate bank credit in accordance with the provitions or resolutions involve a personal interest on sions of this law; the part of one of the attendants, or of his asso- m) Direct the general policy of all banking insticiates or relatives within the fourth degree of con- tutions of an official or semi-official character, in so sanguinity or second degree of affinity, he shall be far as it relates to the monetary, exchange and barred from participation in such deliberations or credit policy of the Republic, through: resolutions, and must withdraw from the session. i) Instructions, recommendations and sugges- Powers and duties—Art. 30. The Monetary tions relative to the general credit policy of such Board shall be responsible for the determination institutions and their issues of securities and other of the monetary, exchange and credit policy of the obligations; Republic, and for the general direction of the Bank ii) Intervention in the organization of the diof Guatemala. rectorates and the administration of the institu- To this end, the Monetary Board shall have the tions, in the form established in the pertinent following powers and duties: laws; a) Execute and enforce the general policy and iii) Determination of the rates to be charged or •duties assigned to the Bank of Guatemala, through paid for active and passive operations; and, the use of its powers and the performance of iv) The limitations which the Board may deem legal operations; necessary to impose, according to the conditions b) Approve, amend and interpret the regulations prevailing in the money market, upon the grantof the Bank of Guatemala, subject to ratification by ing of credits and the issue of obligations by those the Executive Power in the special cases provided institutions; for in the law; c) Approve annually the report of the Bank, its n) Exercise the other functions and powers asbalances and profit and loss accounts, as well as signed to it in accordance with this law, the Monethe disposal of its profits, in conformity with the tary Law and other pertinent provisions. legal provisions; Responsibility—Art. 31. The Board shall exercise d) Vote the annual budget of the Bank, set up its functions with absolute independence and under the necessary positions for the administration of its its exclusive responsibility, within the authority affairs, and determine the corresponding remunera- determined by this law and the regulations. tions; Any act, resolution or omission of the Board e) Appoint and remove the Manager, the direc- which violates legal provisions, or which implies tors of the departments, the advisors and other the intent to cause damage to the Bank of Guatehigher officers of the Bank of Guatemala, and as- mala, shall make all members present at the session sign them their functions within the provisions of liable personally and jointly to the Bank of Guatethis law; mala, the State and any third party, for the injuries f) Submit a list of three names to the Court of and damages incurred. Accounts for the appointment of the Superintendent Exempted from this responsibility shall be the of Banks; titular members who have registered their dissentg) Appoint the advisors required for the proper ing vote, and the others present who have regisfunctioning of the Bank and the efficient perform- tered their objection in the minutes of the session ance of its operations; at which the matter was discussed. 273 MARCH 1946 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN BANKING LAWS AND REPORTS The same responsibility shall attach to those who cial entities and with international financial institudivulge any information of a confidential character tions, in all respects that do not pertain to current about matters discussed by the Board, or who operations of the Bank of Guatemala; make use of such information for personal gain, or c) Intervene in the name of the Bank in all matin detriment to the Nation, the Bank or third par- ters which, by reason of their nature or magnitude, ties. exceed the authority of the Manager or the Superintendent of Banks, in accordance with the de- Chapter II cisions of the Monetary Board; d) Authorize with his signature, separately or The Presidency jointly with the Manager, the contracts entered into by the Bank of Guatemala, the notes or securities Powers and duties—Art. 32. The President shall which it issues and the obligations which it concall and preside over the sessions of the Monetary tracts, as well as the reports, balances, profit and Board and shall guide its deliberations. loss accounts, correspondence and other documents, The President shall have the following responsiin accordance with the laws and regulations of the bilities: Bank and the resolutions of the Monetary Board; a) Assure the fulfillment of the objectives and e) Delegate his power to represent the Bank of duties of the Bank of Guatemala; Guatemala to the Manager or to other officers of b) Study and prepare the bases and norms of the institution, except when his intervention is the monetary, exchange and credit policy of the inlegally required; and, stitution, present them to the Monetary Board and f) Grant powers of attorney in the name of the assure their implementation; Bank. c) Present to the Monetary Board the projected Art. 34. The President shall supervise the genregulations of the Bank of Guatemala, and the eral progress of the Bank, and guide the Manager amendments which experience may suggest; in the execution of its policies, and the Superind) Propose to the Monetary Board the annual tendent of Banks in the functions of inspection and budget of the Bank, and suggest modifications examinations. whenever necessary; The President of the Bank shall resolve in last e) Submit for the consideration of the Monetary instance all matters not reserved to the decision Board all matters on which it should act, and give of the Monetary Board. his opinion on them, verbally or in writing, de- Art. 35. The President shall also have authority, pending on the importance of the case; jointly with the Manager and the Superintendent f) Impart to the Department of Economic Reof Banks: search the instructions necessary for the drafting a) To decide, in cases of extreme urgency and of the Annual Report of the Bank, and submit the when it is impossible to arrange an immediate broad outline of this report for the approval of the session of the Monetary Board, any matter under Monetary Board; and, the jurisdiction of the Board itself; and, g) Perform the other duties and powers assigned b) To suspend the resolutions or decisions of to him in this law, the regulations of the Bank and the Board, when an unforeseen fact or a serious and other pertinent provisions. urgent need so demand. The President shall exercise his functions with In both cases the President shall have the obligathe collaboration of the Manager, the Superintion to call the Monetary Board as soon as possible, tendent of Banks, the directors of the departments in order to give account of his action and explain and other officers whose cooperation he deems useful why he has deviated from normal procedures. in considering any specific problem. Incompatibility—Art. 36. The President shall be Art. 33. The President shall be the principal under obligation to dedicate his activities chiefly to representative of the Bank of Guatemala and in that the service of the Bank of Guatemala, and his capacity shall have the following functions: functions shall be incompatible with the exercise a) Conduct relations with the authorities of the of any other employment, public or private, whether Republic, especially the Executive Power, and pro- remunerated or ad honor em, with the exception of mote coordination between the economic, financial positions of an educational character and of comand fiscal policy of the State and the policy of the missions directly related to the direction of mone- Bank of Guatemala, in accordance with the instruc- tary and banking policy. tions or recommendations of the Monetary Board; Vice-Presidency—Art. 37. In case of the absence b) Conduct, directly or through the Manager, re- or temporary incapacity of the President, the Vice lations with other central banks, with foreign offi- President shall act as President. 274 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN BANKING LAWS AND REPORTS Chapter III documents, in accordance with the laws and regulations of the institution and the resolutions of the The Management Monetary Board. Provision for alternate—Art. 41. In case of the Functions—Art. 38. The Manager shall be in absence or temporary incapacity of the Manager, charge of directing the operations and internal the Monetary Board shall designate any one of administration of the Bank of Guatemala, and shall the department directors of the Bank to serve in be responsible to the President and to the Monetary his stead. Board for the correct and efficient functioning of - Qualifications—Art. 42. The Manager or his the institution. alternate must fulfill the same qualifications re- The Manager shall be the superior officer of quired for the Presidency of the institution. the Bank of Guatemala and of its personnel, with Those who fall under any of the disqualifications the exception of the Superintendent of Banks. mentioned in Article 22 of this law, in so far as Art. 39. The powers and duties of the Manager they are applicable, shall be ineligible for the shall be the following: position. a) Supervise continuously the progress of the The positions listed in Article 36 of this law as Bank, the observance of pertinent laws and regula- incompatible with the office of President of the tions, and the fulfillment of resolutions of the Bank of Guatemala are also incompatible with the Monetary Board; office of Manager. b) Furnish the President and the Monetary Board with such regular, precise and complete in- Chapter IV formation as may be desirable to assure the proper management of the Bank; The Office of the Superintendent of Banks c) Prepare the cases that must be submitted to the consideration of the Monetary Board, and, with Functions—Art. 43. The Superintendent of the President, decide the order in which they shall Banks shall exercise continuous supervision and be submitted; inspection of the Bank of Guatemala and of other d) Prepare the annual budget of the Bank and banking institutions placed under his control. The assure its correct application; Superintendent shall be directly responsible to the e) Suggest to the Monetary Board the appoint- Monetary Board. ment of the higher officers of the Bank of Guate- Art. 44. The functions of the Superintendent mala; of Banks are the following: f) Appoint and remove directly the other ema) Execute and assure the observance of the ployees, assigning them their functions and salalaws, regulations and provisions relating to the ries, in accordance with the regulations and within Bank of Guatemala and other banking institutions; the authorizations of the budget. b) Audit all operations and activities of the Bank This authority shall be exercised in agreement of Guatemala, verifying its accounts and holdings with the Superintendent of Banks when dealing through inventories and other relevant procedures; with the personnel of his office; examine balances and statements of account, checkg) Resolve the operations and other matters pering them against the books and documents, and taining to his decision, and communicate to the certify them when he deems them to be correct; officers and employees the instructions, observac) Supervise, with direct responsibility, the issue tions or recommendations which he deems advisof notes and coin, and especially the operations of able for the proper progress of operations and the printing, minting, issuance, replacement, withefficient administration of the Bank; and, drawal, cancellation, demonetization, incineration h) Exercise the other functions and powers perand custody of notes and coin; taining to his office in accordance with this law, the d) Report to the Manager any irregularity or regulations and other pertinent provisions. violation which he observes in the operations and Art. 40. The Manager shall represent the Bank activities of the Bank of Guatemala, and in case the of Guatemala in current matters and operations Manager does not adopt, within the next three and, in this capacity, shall authorize, separately or working days, measures which, in the opinion of jointly with the President, the contracts entered the Superintendent, are adequate to correct the into by the Bank of Guatemala, the notes or securi- deficiencies, submit the matter to the President ties which it issues and the obligations which it and to the Monetary Board; contracts, as well as the reports, balances, profit e) In case the Monetary Board does not adopt and loss statements, correspondence and other adequate measures to rectify irregularities or viola- MARCH 1946 275 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN BANKING LAWS AND REPORTS tions brought to its attention, or in case it adopts before the expiration of the period for which he has resolutions or regulations violating legal provisions, been appointed, except by the Court of Accounts,, or acquiesces in decisions which adversely affect upon petition of the Monetary Board or at the initithe prestige and solidity of the Bank, or cause it ative of the Court itself, after previous demonstrato deviate substantially from its functions, report tion of the facts in summary indictment, and only in« the situation to the Ministry of Economy and the the following cases: Court of Accounts, with such pertinent evidence a) If he falls under any of the disqualificationsas the case may require; mentioned in Article 22 of this law, in so far as« f) Regularly inspect the banking institutions and they are applicable; effect appropriate verifications through the auditors b) If he has committed grave faults of a legal' of his office; or moral character disqualifying him for the- These inspections and verifications must be made honorable performance of his position; and, at least twice a year without previous notice to the c) In case of manifest incompetence for the* institutions to be inspected; discharge of his functions. g) Present to the banking institutions the suggestions or recommendations which he deems ad- Injunctions—Art. 48. Neither the Superintendent: visable; instruct these institutions to correct any of Banks nor his subordinates may be directors,, deficiencies or irregularities which may have ocmanagers, administrators, partners, employees or curred; and take the measures within his comshareholders of the institutions subject to inpetence, or recommend to other authorities measspection. ures within their competence, to punish and cor- Nor shall they be allowed to accept, directly or rect any violations which may have taken place; indirectly, gifts or presents of any kind from these The executive or interpretative resolutions which institutions or from their directors. the Superintendent adopts with relation to the The injunctions mentioned in this article shall functions of inspection and examination of banking extend to the wives and minor children of the institutions may be appealed to the Monetary Superintendent of Banks and of his subordinates. Board; Art. 49. The information obtained by the h) Present summary reports on the inspections Superintendent of Banks and his subordinates in and examinations of the banking institutions to the performance of their functions shall be strictly the Monetary Board, which may request, when it confidential. They may not reveal or comment deems it appropriate, the complete report of the upon the data obtained nor the facts observed in Superintendent, as well as any other confidential the inspection, except in the fulfillment of their information on the inspected institutions; duties. i) Collaborate with the Management and the Penalties—Art. 50. Violation of the injunctions other departments of the Bank of Guatemala in the contained in the two preceding articles shall be fulfillment of their duties; and, considered a serious offense, and shall cause the j) Exercise the other functions of inspection and immediate removal of those responsible, in adexamination pertaining to his position, in accorddition to the application of such other penalties ance with the laws, regulations and other pertinent as may be provided for in the Penal Code. provisions. Cost of inspection—Art. 51. The institutions Qualifications—Art. 45. The Superintendent of subject to the supervision of the Superintendent, Banks must be a person of recognized probity and with the exception of the Bank of Guatemala, ample knowledge and experience in accounting, shall defray the inspection services, paying to said auditing and banking practice. Bank an annual quota to be determined by the Those who fall under any of the disqualifica- Monetary Board. tions mentioned in Article 22 of this law, in so far This quota shall be calculated on the basis of as they are applicable, shall be ineligible for the assets shown on the balance sheets of these instituposition of Superintendent. tions, and shall not exceed, in any case, one per Art. 46. The Superintendent of Banks shall be thousand of the assets of each institution after appointed by the Court of Accounts, from a list deduction of its cash reserves and other liquid of three nominees submitted by the Monetary funds. Board, for a term of five years computed from the If the proceeds of the quotas calculated in this date of his appointment, and shall be eligible for manner should be insufficient to defray the inreappointment in the same manner. spection services, the difference shall be charged Removal from office—Art. 47. The Superin- to the Bank of Guatemala. tendent of Banks may not be removed from office Supplementary auditing—Art. 52. The Monetary 276 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN BANKING LAWS AND REPORTS Board may engage foreign firms specialized in it part of its functions to participate in training auditing and of recognized international prestige technical personnel in economic matters, especially to collaborate with the Superintendent of Banks, in the field of money, credit and banking. especially for the inspection of the Bank of Guate- To this end, the Bank of Guatemala, in accordmala itself. ance with the reports and suggestions of the Director of the Department, shall have authority to Chapter V defray the cost of studies abroad by outstanding employees of the institution and other qualified The Department of Economic Research persons, and to remunerate the services of foreign experts called upon to train the personnel in Functions—Art. 53. The Bank of Guatemala economic matters. shall have a Department of Economic Research, in Access to information—Art. 56. The Ministries charge of obtaining the data and making the in- of State, the Court of Accounts, the Bureau of vestigations advisable for the guidance of monetary Statistics and all other agencies of the State shall policy and the attainment of the Bank's objectives. make promptly available to the Department of The Department shall be in charge of a Direc- Economic Research the data which it may solicit tor and shall include the necessary assistants. All for the fulfillment of its functions. must be specialized in economic matters. Art. 54. The functions of the Director of the Department are the following: Chapter VI a) Prepare, with the assistance of the Exchange The Other Departments Department, estimates of the balance of payments; b) Collaborate with the Superintendent of Banks Organization and regulation—Art. 57. The in the preparation of monetary and banking Monetary Board shall organize and regulate the statistics or information; other departments necessary for the functioning c) Maintain constantly the minimum statistical of the Bank, and especially the Exchange Departinformation referred to in Article 129 of this law, ment and the Credit Department. and submit it regularly to the Manager; d) Prepare any other statistical reports and Title IV economic studies which, in his judgment, may be useful to the Banks, as well as those requested from Operations of the Bank him by the Monetary Board, the President or the Manager; Chapter I e) Collaborate with the Ministries of State, the Bureau of Statistics and other official agencies, in Assets and Liabilities the preparation of economic information and studies, and especially in the improvement of the Assets—Art. 58. The Bank of Guatemala may statistical services of the country; compute as assets only the following: f) Organize and administer the library of the a) The international monetary reserves forming: Bank and maintain a maximum interchange of the Monetary Stabilization Fund of the institution; publications and data with other central banks, b) The credit and investment operations effectuwith financial entities abroad and other interna- ated in accordance with the provisions of this law; tional banking institutions; c) The Exchange Revaluations Account which g) Draft the Annual Report of the Bank, in ac- may appear in accordance with Articles 12 and 13; cordance with the instructions imparted by the d) The assets resulting from its participation in President; international banking institutions, and from its h) Issue releases and publications, and perform credit operations abroad; other activities in the field of economic education; e) Provisionally, and until their cancellation or i) Supervise the preparation and assure the ac- liquidation: curacy of the official publications of the Bank of i) The Consolidation Bond of Subsidiary Guatemala; and, Issues which the State shall deliver to the Bank j) Exercise the other functions and powers perin conformity with the transitory provisions retaining to his office in accordance with the law, lating to this law; and, regulations and other relevant provisions. ii) The shares of the present Central Bank Training of technical personnel—Art. 55. The of Guatemala which the State shall transfer to Department of Economic Research shall consider the Bank as initial contribution to the "Guar- MARCH 1946 277 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN BANKING LAWS AND REPORTS antee Fund" and the "Fund for the Regulation of The bank reserve shall equal at least the the Bond Market"; minimum amounts established by the Monetary Board, in conformity with the provisions of this f) The other items resulting from operations law. provided for in this law. The obligation to maintain bank reserves shall Liabilities-—Art. 59. The liabilities of the Bank extend to all banking institutions, national and of Guatemala shall be covered fully and exclusively foreign, which operate in the country, whether by the assets mentioned in the preceding article, private, mixed, or official. and shall include the following: Reserves against deposits in national currency— Art. 64. The Monetary Board shall determine the a) The monetary issue defined in Article 61 of minimum bank reserves which the banks must this law; maintain with relation to their deposits in national b) The stabilization bonds, notes and certificates currency, and to this end shall have authority: issued by the Bank; c) The time deposits which the Bank may re- a) To determine, in a general and uniform ceive in accordance with the provisions of the manner, the reserves required to be held by the present law; banks against such deposits, provided that the d) The Exchange Revaluations Account which requirement shall be not less than 10 per cent nor may appear in accordance with Articles 12 and 13; more than 50 per cent for the various classes of e) The liabilities resulting from the Bank's deposits; and, participation in international banking institutions b) To require the banks to maintain more than and from its credit operations abroad; 50 per cent reserves against any increase in deposits f) The Guarantee Fund of the Bank; and, above the amount outstanding at the time such g) The other items resulting from operations measure should be adopted; in case of the improvided for in this law. position of such reserve requirements the Monetary Board must order the payment of interest, at a rate not in excess of 3 per cent a year, on the Chapter II part of the required reserves which exceeds 50 per cent of the deposit obligations of the respective The Monetary Issue banks. Issue privilege—Art. 60. The Bank of Guatemala, Reserves against deposits in foreign currencies— in its capacity of sole issuer, shall be the only Art. 65. The Monetary Board may prohibit or entity which may issue notes and coin within the authorize the receipt of deposits in foreign curnational territory, and receive on deposit the reserves rencies by the banks. Whenever such authorizaof the banks. tion is given, the Board shall regulate the adminis- Monetary issue—Art. 61. The monetary issue of tration of the deposits and determine what reserves the Bank of Guatemala shall consist of: shall be held against them; to this end, the Board a) The notes and coin of the Bank in actual shall have authority: circulation; and, a) To determine, in a general and uniform manb) The deposits of the State, official entities and ner, the reserves required to be held against such banks, with the Bank of Guatemala, payable upon deposits, provided that the requirement shall be simple presentation of checks. not less than 10 per cent nor more than 100 per cent, for the various classes of deposits, without The notes and coin in possession of the Bank obligation to pay interest to the banks on any part of Guatemala shall not be included in the monetary of such reserves; issue and shall not appear either in the assets or b) To determine the form and the currency, liabilities of the institution. either national or foreign, in which such reserves Art. 62. The functions and obligations of the shall be maintained by the banks; and, Bank of Guatemala with respect to the monetary c) Whenever the Board does not require reserves issue shall be governed by the pertinent provisions of 100 per cent against deposits in foreign exchange, of the Monetary Law, this law and the regulations it may demand that other assets be maintained of the Bank. in the currencies of the deposits, in order to equili- Ban\ reserves—Art. 63. The banks shall have brate, as far as possible, the assets and liabilities in the obligation of maintaining constantly, in the such currencies. form of demand deposits in the Bank of Guatemala, a reserve proportional to their deposit obligations, The bank reserves and other assets in foreign which shall be denominated "bank reserves". currencies maintained by the banks against their 278 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN BANKING LAWS AND REPORTS liabilities in foreign currencies in accordance with bank falls below the required reserves, it must be the regulations and decisions of the Monetary brought up to the proper level immediately. Board, shall be exempted from the prohibitions The Monetary Board shall organize and regulate and restrictions issued against the holding of the Clearing House and supervise its operation. foreign exchange assets by the banks. Computation of reserves—Art. 70. The reserve Increase of reserves—Art. 66. Whenever it be- position of each bank shall be computed monthly, comes advisable to increase bank reserves against on the basis of the amount of its reserves and deposit obligations, either in national or in foreign deposits at the end of each day; but any bank currencies, the Monetary Board shall decide the shall normally be permitted to compensate for any increases in a gradual and progressive manner, deficiency in its reserves during one or more days notifying the banks of any resolution which it of the month with its excess reserves in the other adopts to this effect, with reasonable anticipation days of the same month. of the date at which it will become effective. Nevertheless, in case of abuse, the Monetary Classification of deposits—Art. 67. With respect Board may deny to any bank the privilege of comto constituting and maintaining bank reserves, the pensating reserve deficiencies and excesses, and following definitions are established: consider the sum of the daily deficiencies to be the monthly deficiency. a) For deposits in national currency: All offices maintained in the national territory i) "Monetary deposits" arc those payable upon by a banking institution shall be considered as a simple request of the depositor or creditor through single unit for the calculation of bank reserves. presentation of checks; Penalties—Art. 71. Whenever there is a monthly ii) "Short-term deposits" are those payable deficiency in the reserves of any bank, calculated within a period not exceeding 30 days, or subject in accordance with the provisions of the preceding for their payment to previous notice not exceed- article, the Superintendent of Banks shall so advise ing that period; the directors and managers of said bank in writiii) "Long-term deposits" are those payable ing, and shall impose a fine of 1/10 of one per only after 30 days, or subject for their payment cent of the amount of the deficiency. to previous notice exceeding that period; If the deficiency persists for more than 12 months iv) "Savings deposits' are those consisting of after the first written notice, the Monetary Board obligations payable on special conditions agreed shall have authority to prohibit the bank from upon with the depositor, or established by the making new loans or investments and from paying laws regulating saving; dividends to its shareholders, until it has maintained b) For deposits in foreign currencies: reserves at the required level for at least a full month; and the deficient bank shall remain subject i) "Short-term deposits' are those payable at to the fines to be applied by the Superintendent of any time not exceeding 30 days, or subject for Banks in accordance with the preceding paragraph. their payment to previous notice not exceeding If a deficiency persists for four consecutive that period; months or occurs in six different months within a ii) "Long-term deposits" are all those payable period of two years, the Monetary Board may reonly after 30 days or more, or subject for their quest the competent judicial authorities to liquidate payment to previous notice exceeding that period. the deficient bank. Art. 68. The Monetary Board may, within the Chapter III limits established in this law, determine different rates of bank reserves for the different classes of External Monetary Stabilization deposits defined in the preceding article. Exchange stability—Art. 72. The Bank of Guate- If it deems it advisable, the Board may also mala shall maintain the external value of the nasubject to reserve requirements any liability ac- tional currency, and assure its convertibility into counts similar to deposit liabilities, and determine foreign currencies in accordance with the system the corresponding reserve requirements, within established in the Monetary Law. the limits established for deposits in national and Monetary Stabilization Fund—Art. 73. In order in foreign currencies respectively. to achieve the ends specified in the preceding Clearing House—Art. 69. The reserves and other Article, the Bank of Guatemala shall establish and funds deposited by the banks in the Bank of Guate- maintain a "Monetary Stabilization Fund", in mala shall serve as a basis for a system of check which shall be centralized and shall accumulate settlement through a Clearing House. In the the international monetary reserves of the institufunctioning of this system, when the deposit of any tion. MARCH 1946 279 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN BANKING LAWS AND REPORTS Net reserves—Art. 74. With relation to the tary Stabilization Fund shall be distributed in reserves which make up the "Monetary Stabiliza- accordance with the following rules: tion Fund" there shall be distinguished the cona) Whenever the net reserves of the Fund do cepts of "absolute reserves" and "net reserves". not exceed 40 per cent of annual average sales of The absolute reserves shall consist of the agexchange during the three preceding years, the Fund gregate assets in gold metal and foreign exchange shall maintain its assets exclusively in: in possession of the Bank of Guatemala. Net reserves shall be derived by deducting from i) Gold metal deposited in the vaults of the the total assets in gold metal and foreign exchange Bank of Guatemala, or left in the custody of the following obligations: either international financial institutions or foreign central banks; or, a) The total amount of the Bank's gold and ii) Demand deposits or equivalent first-class foreign exchange obligations falling due within investments, disposable at par and at sight, at 30 days; the simple request of the Bank, in the same b) Seventy-five per cent of the Bank's gold and institutions or in first-class foreign banks; or, foreign exchange obligations falling due after 30 iii) First-class drafts upon foreign countries, days, but within a year; with maturities not in excess of seven days; or, c) Fifty per cent of the gold and foreign ex- iv) First-class official foreign obligations, dischange obligations of the Bank falling due after posable at any time in a constant market, and one year but within three years; and 50 per cent with maturities not in excess of three months; or, of similar obligations of indefinite maturity; v) Notes and coin of other countries, up to d) Twenty-five per cent of the gold and foreign the amounts required for current transactions in exchange obligations of the Bank falling due after such notes and coin; three years; e) The other obligations owed abroad, either by b) Any reserves in excess of the 40 per cent the Bank, or by third parties with the Bank's mentioned above may be maintained in: guarantee, in accordance with the percentages i) The same forms specified in clause (a) of indicated above for obligations of corresponding this article; or, maturities. ii) Time deposits in the institutions specified in clause (a), payable within a maximum period Distribution of reserves—Art. 75. The absolute of six months; or, reserves of the Monetary Stabilization Fund shall iii) First-class official foreign obligations, or be distributed between gold metal and the principal securities guaranteed by international agreements foreign currencies of recognized soundness which or by governments of recognized solvency, promost influence the balance of payments of the vided that their maturities do not exceed 12 country. months; This distribution shall be made in approximate proportion to the anticipated needs of the net c) Any reserves in excess of 75 per cent of the balance of international payments for each of the annual average of exchange sales during the three aforesaid currencies, taking into account the de preceding years may be maintained: facto convertibility, or inconvertibility, between gold i) In the same forms specified in clauses (a) metal and the various currencies. and (b) of this article; or, Investment of reserves—Art. 76. The investment ii) In time deposits in the institutions specified of the absolute reserves of the Monetary Stabilizain clause (a) of this article, payable within a tion Fund shall be in accordance with the followmaximum period of one year; or, ing objectives: iii) In first-class official foreign obligations, or a) To maintain the most absolute guarantee that in securities guaranteed by international agreethe Bank of Guatemala shall always command the ments or by governments of recognized solvency, liquid assets which may be necessary to cover any provided that their maturities do not exceed foreseeable deficit in the balance of payments^ and five years. thus maintain the external convertibility and stability of the currency; and, Art. 78. Whenever the net reserves of the Monetary Stabilization Fund exceed 75 per cent of the b) To avoid excessive and costly accumulation of annual average of exchange sales during the idle and sterile funds, without advantage to the national economy. three preceding years, the Monetary Board shall have authority to invest, totally or partially, the Art. 77. In consequence, the assets of the Mone- excess reserves in the acquisition of regularly serv- 280 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN BANKING LAWS AND REPORTS iced obligations of the foreign debt of the Govern- and external prices and production costs, the Monement of the Republic. In this case, the amount tary Board must adopt the measures appropriate to invested in the acquisition of these securities shall correct the disequilibrium and to re-establish the no longer be considered as international reserves, normal competitive position of the national proand shall not be included among the assets of ducers in the domestic and international markets. the Monetary Stabilization Fund. The Monetary Board shall use to this end the Transactions with international and foreign powers accorded it by law to assure monetary ban\s—Art. 79. The Bank of Guatemala may stability, and, when such action is indispensable, transact business with international banking insti- shall request the modification of the gold parity tutions, in accordance with the international agree- of the national currency in conformity with the ments subscribed to and ratified by the Republic principles of the Monetary Law. and with the legal provisions which may be In such case, the Monetary Board shall present enacted on the subject. to the Congress of the Republic and to the Execu- Art. .80. The Bank of Guatemala may carry on, tive Power, through the medium of the Ministry with other central banks and with first-class foreign of Economy, a detailed report on the factors of banks, credit transactions as well as other opera- disequilibrium, the measures of defense adopted, tions characteristic of a central bank. and the further legal, economic, fiscal or adminis- Art. 81. The Bank of Guatemala may act, in trative measures which it considers advisable to all operations proper for a central bank, as agent recommend. or correspondent of other central banks, of inter- Chapter IV national banking institutions and of first-class foreign banks, and may appoint such entities as Credit Operations its agents or correspondents abroad. Statistical information—Art. 82. The Director Eligible operations—Art. 85. The Bank of Guaof the Exchange Department shall submit to the temala may conduct, exclusively with the bank- Monetary Board, in each ordinary session, a statis- ing institutions of the Republic, the following tical summary of the movements of supply and credit operations: demand in the foreign exchange market. a) Rediscount, discount, buy and sell bills of ex- Similarly, the Director of the Department of change, acceptances, promissory notes and other Economic Research shall submit to the Monetary credit documents with maturities not beyond one Board, in the month of February of each year, a year from the date of their acquisition by the Bank, report containing estimates of the balance of and growing out of operations related to: payments for the coming year. These estimates i) The production or processing of agriculshall be revised and rectified, at least every three tural, pastoral and industrial goods; months, in accordance with any new developments ii) The importation, exportation, purchase or which may have appeared. sale of readily salable goods or merchandise, Before the first of May of each year, the Director or their transportation within the national terof the Department of Economic Research shall also ritory; and, present to the Monetary Board the final statement iii) The storing of nonperishable agricultural, of the balance of payments of the preceding year. pastoral and industrial goods, or of import or Temporary disequilibria in the balance of payexport merchandise, insured and deposited, under ments—Art. 83. The Bank of Guatemala shall conditions assuring its preservation, in authorized utilize the reserves of the Monetary Stabilization general deposit warehouses or in other places Fund for the protection of the stability of the curapproved by the Monetary Board; rency against temporary disequilibria in the balance of payments. b) Grant advances for fixed periods, not to exceed Nevertheless, if international reserves fall in the one year, upon the following kinds of collateral: proportion, or to the levels, indicated in the Monei) Gold coin or bars whose sale to the Bank tary Law, the Monetary Board may petition the of Guatemala has not been required by the President of the Republic to institute the Emer- Monetary Board, under the authority conferred gency System of international transfers referred to to it by law; in the same law. ii) The credit documents specified in clause fundamental disequilibria in the balance of (a) of this article; and, payments—Art. 84. In the case of a fundamental iii) Debtor balances of credits in current and persistent disequilibrium in the balance of account related to the operations mentioned in payments related to disparities between domestic clause (a) of this Article, and certified as to MARCH 1946 281 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN BANKING LAWS AND REPORTS amount and liquidity by the manager and the law, taking into account the monetary situation, accounting chief of the institution which solicits the needs of the market and the composition of the advance; the Bank's portfolio. Banking endorsement—Art. 88. The documents c) Grant advances, in periods of emergency which bought or accepted as collateral by the Bank of directly threaten monetary or banking stability, Guatemala must bear the endorsement of the instiupon the guarantee of any other assets which the tution from which they are received. Monetary Board shall temporarily include as acceptable collateral; provided that this decision be Decision on credits—Art. 89. The Bank of adopted with the concurrent vote of at least five Guatemala shall have complete independence in members of the Board; accepting or rejecting any request for credit presented to it. d) Rediscount, discount, buy and sell bills of exchange, acceptances, promissory notes and other Procedures—Art. 90. Credit requests to the Bank credit documents, with maturities not beyond one shall be considered and decided upon by a Credit year from the date of their acquisition by the Bank, Committee. and resulting from operations related to the grant- The Committee shall be composed of three meming of credits to the State and to public entities; bers, who shall be the Manager and two other high and grant advances for fixed periods not exceeding officers of the Bank of Guatemala designated by one year on the collateral of such documents; al- the Monetary Board. Titular and alternate memways provided that the operations be legally au- bers of the Board may not serve on the Credit Comthorized and guaranteed by the Government of mittee. the Republic. The Monetary Board shall determine the limits and conditions of the Committee's authority and The total amount of funds invested by the Bank shall impart to the Committee additional instrucof Guatemala in the documents referred to in this tions for its guidance, in accordance with Article 86 clause, or in paper for which they are collateral, of this law. shall not exceed 10 per cent of the annual average Art. 91. The Committee shall examine the credit of ordinary fiscal revenues received in cash by the requests presented to it, and adopt its decisions National Treasury during the three preceding with the affirmative vote of at least two of its years; members. e) Grant credits and advances, for a period not All approvals of credits shall require the favorable exceeding one year, to finance purchases by the vote of the Manager; but rejections may be adopted institutions which, in accordance with the laws, on the vote of the other two members. are placed in charge of the stabilization of the The credits granted by the Committee with the prices of produce and manufactured goods (buffer favorable vote of the Manager shall be acted upon stocks). without any other formality. Those denied by the Such loans must be fully guaranteed by the State Committee shall be submitted to the consideration and secured by the goods purchased, which shall of the Monetary Board if the Manager so decides, be deposited under insurance in authorized general or if the institution interested in obtaining the deposit warehouses or in other places approved credit so requests. by the Monetary Board. Art. 92. The Monetary Board shall consider and The amounts due the Bank of Guatemala for decide individual credit requests only in the followsuch loans shall be repaid as rapidly as the proding cases: ucts bought are sold; and the Bank of Guatemala itself shall intervene in the sales. a) Requests related to credit operations of the Art. 86. The Monetary Board shall establish, State and of public entities; within the general limitations provided for in b) Other operations which by their amount or this law, the other standards which shall govern nature exceed the competence of the Credit Comthe credit operations of the Bank of Guatemala. mittee; Similarly, the Board may, by specific action, c) When the Committee has refused the grantfurther limit the maximum maturities mentioned ing of credit. in Article 85, and demand security margins between the value of the credits granted and the value of In these cases the Manager shall submit the the collateral, in accordance with the various types matter to the Monetary Board through the medium of operations in which the credit originated. of the President of the Bank and shall make such Rates—Art. 87. The Monetary Board shall de- recommendations as seem appropriate. termine the rediscount and interest rates applicable Liquidity of the Ban\ portfolio—Art. 93. The to the various credit operations authorized in this Monetary Board shall review monthly the composi- 282 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN BANKING LAWS AND REPORTS tion of the portfolio of the Bank of Guatemala and, turbances mentioned in the preceding clause, and after examination of the situation of the monetary the other legal, economic, fiscal or administrative and credit market, shall issue the instructions which measures which it considers advisable to recomit deems appropriate in order to stabilize the mar- mend. ket and to prevent excessive immobilization of the assets of the institution. The Board shall continue to inform the Executive Credits of the type authorized in clauses (a) and Power periodically, and at least semi-annually, of (b) of Article 85 shall not be granted for periods the results achieved by the measures taken, until in excess of 120 days whenever the maturity of two- monetary disturbances have disappeared. thirds of the outstanding volume of credit pre- Instruments of control—Art. 98. In the perviously granted in accordance with the same clauses formance of its task of internal monetary stabilizais in excess of 120 days. tion, the Bank of Guatemala shall utilize especially Repayment of credits—Art. 94. The documents the following instruments: discounted, rediscounted or accepted as collateral a) The determination of its rediscount and inby the Bank of Guatemala must be withdrawn by terest rates, and the authority to accept or reject the borrowing institution at the dates of their maapplications for credit presented to it (Articles 87 turities, through the payment of the respective and 89); credits, except that they may be withdrawn earlier, b) The influence which it may exercise over the upon payment of the obligations which.they repbanking system through: resent. i) Establishment of minimum bank reserves Chapter V (Articles 64, 65 and 68); ii) Regulation of the minimum proportions of Internal Monetary Stabilization capital and surplus which the banks must main- General criteria—Art. 95. The Bank of Guate- tain in relation to their active operations, in acmala shall promote the maximum development of cordance with the provisions of the general bankthe country's productive activities, and counteract ing law; or moderate fluctuations of a deflationary or infla- iii) Establishment of the maximum rates of tionary character which may arise in the money and interest provided for in Articles 99 through credit market. 101; and, Art. 96. The Bank of Guatemala shall control iv) Control of the issues of obligations by the any abnormal expansion or contraction of the money banks, and restrictions upon the granting of supply which threatens to cause harmful instability bank credit as provided for in Articles 102 and in internal prices and in the general economic ac- 103; tivity of the country. The money supply is composed of: c) The guidance of the general policy of banking institutions of an official or semi-official character a) The national notes and coin in the hands of (Article 30, clause m); the public; and, d) The intervention in the open market, through b) Official and private monetary deposits outthe purchase, sale or retirement of Stabilization standing in all the banks, excluding interbank Bonds issued by the Bank, and the negotiation deposits. of securities issued by other entities (Articles 104 and 108); Art. 97. When the money supply increases or e) The acceptance and repayment of the time dedecreases by more than 15 per cent within a period posits which the Bank may receive (Article 109); of 12 months, the Monetary Board must transmit f) The management of the Fund for the Reguto the Executive Power a detailed report showing: lation of the Bond Market, and of official deposits a) The external or internal factors causing such (Articles 114 and 118); expansion or contraction; g) The intervention of the Board in credit opb) Its repercussions on monetary, exchange and erations of the State and of public entities, and its credit conditions and on the level of employment, functions as advisor and fiscal agent of the Governnational production, prices and economic activities ment (Article 123); and, in general; h) The other powers conferred on it by this law, c) The inflationary or deflationary symptoms the Monetary Law and other pertinent provisions. which such an analysis may reveal in the different sectors of the economy; and, Maximum interest rates—Art. 99. The Monetary d) The measures adopted to combat the dis- Board shall determine the maximum rates which MARCH 1946 283 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN BANKING LAWS AND REPORTS the banks may charge for different types of loans expressly granted by the laws as well as other proand for any other active credit operations. visions of a general character. When the Monetary Board deems it advisable, In case of a pronounced inflationary trend in however, it may abstain from fixing maximum rates bank credit, the Monetary Board may, with the on specific classes of active credit operations, and concurrent vote of four of its members, through leave the matter to the discretion of the banks. the establishment of ceilings on bank portfolios, Nevertheless, in case of such abstention, the Mone- limit in a general manner and without discriminatary Board may establish the maximum difference tion, the maximum volume of bank loans. Such which may exist between the rediscount or interest ceiling may not be maintained for more than a rates of the Bank of Guatemala, and the rates which year, except in cases of exceptional gravity and by may be charged by the banks for different types of unanimous vote of the members of the Monetary credits, if the respective credit documents are not Board. to lose their eligibility for rediscount or advances Open mar\et operations—Art. 104. Intervention at the Bank of Guatemala. of the Bank of Guatemala in the open market shall Any bank which grants loans, or effectuates other be exercised through the purchase and sale of seactive credit operations, at rates of interest exceeding curities defined as eligible by the present law, and the maximum rates fixed by the Monetary Board in issued either by the Bank of Guatemala itself or by accordance with the first paragraph of this article, other entities. shall be subject to the penalties provided for in the Such operations shall be directed toward stabilizlaws against usury. ing the money market, through the temporary with- Art. 100. The Monetary Board shall determine drawal from circulation of excess funds exerting the maximum rates which the banks may establish inflationary pressures upon the economy, and the or pay to their clients upon the various classes of placement of additional funds in circulation whendeposits, issue of obligations and any other passive ever desirable to combat deflationary tendencies. credit operations. Art. 105. For purposes of monetary stabilization, When the Monetary Board deems it desirable, it the Monetary Board may order the issue by the may abstain from fixing maximum rates on specific Bank of Guatemala of freely negotiable credit obclasses of passive credit operations, and leave the ligations, denominated "stabilization bonds". The matter to the discretion of the banks. Monetary Board shall determine: If a bank engages in passive credit operations on a) The interest rates to be earned by such bonds; which it establishes or pays interest in excess of the b) The maturity dates; maximum rates fixed by the Monetary Board in c) The conditions under which they shall be reaccordance with the first paragraph of this article, paid, and the manner in which the Bank may effect the Bank of Guatemala shall advise the Ministry of extraordinary amortization; and, Economy, in order that the Ministry may fine the d) The currency in which they shall be exguilty bank up to five times the amount of the changed and paid, the Board being allowed to conexcessive interests established or paid. tract the obligation in gold or foreign exchange Art. 101. Any change which the Monetary Board when circumstances so advise. may decree with respect to maximum rates for the active and passive operations of the banks, shall The Bank of Guatemala may repurchase its govern only future operations, and shall not apply stabilization bonds, either in the market at a price to those effectuated prior to the effective date of not less than their face value, or through redempthe change. tion at par and by lot if the Bank has reserved the Limitation on security issues—Art. 102. The right to effect extraordinary amortization. Monetary Board may, if it deems it essential to pre- Art. 106. The stabilization bonds acquired, amorvent excessive security issues, subject to previous tized or redeemed by the Bank of Guatemala, ordiauthorization by the Bank of Guatemala the issue narily or extraordinarily, shall be immediately reof securities or other obligations by the banks, taking tired and shall no longer be considered assets of into consideration the economic and monetary situa- the institution. tion of the country and the absorption capacity of Interests due and bonds not presented for paythe market. ment within 10 years from the date at which they Selective control—Art. 103. The Monetary Board become payable shall be cancelled in favor of the shall restrict the granting of bank credit for specula- Bank of Guatemala. tive purposes, and shall encourage a distribution of Art. 107. As long as the net reserves of the credit conforming to the general interests of the Monetary Stabilization Fund exceed 25 per cent national economy, using to this end the powers of the annual average of exchange sales during the 284 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN BANKING LAWS AND REPORTS three preceding years, the Bank of Guatemala may nating in the inflow of foreign exchange, or to acquire for its own account: promote their investment in noninflationary operations, or to secure their absorption through fiscal a) Bonds or obligations legally issued or guaranprovisions directed toward social improvements. teed by the Government or by public entities; b) Bonds or obligations legally issued by official Chapter VI or semi-official financial institutions; c) Other first-class national bonds or obligations, Relations with the State defined as eligible by the vote of at least five members of the Monetary Board. Functions—Art. 111. The Bank of Guatemala shall exercise the functions of advisor, fiscal agent The bonds or obligations issued or guaranteed and banker of the State. by the State or by public entities must be of a grad- Fund for the regulation of the bond market— ual and cumulative amortization, not to extend Art. 112. As agent of the State, the Bank of Guateover a period exceeding 10 years. The Monetary mala shall form a "Fund for the Regulation of the Board must make sure that such bonds and obli- Bond Market". gations have been issued in accordance with a fi- This fund shall be administered by a "Security nancial plan adapted to the possibilities of meeting Commission", composed of the President and Manathe service of the debt; and shall attend to the in- ger of the Bank and the Ministers of Finance and clusion in the respective budgets of the assignments Economy. The resolutions of the Commission shall necessary to secure the fulfillment of these obliga- be adopted by concurrent vote of at least three of tions. its members. Art. 108. The purchases of bonds and obligations Art. 113. The Fund for the Regulation of the referred to in the preceding article shall be adjusted Bond Market shall consist of: to. the situation of the money market, so to maina) The amounts initially contributed for its contain the money supply at normal and noninflastitution by the State, in accordance with the transitionary levels. tory provisions related to this law; The Bank of Guatemala shall especially use such b) Other contributions of the State in conformity purchases to combat movements of a deflationary with special laws or through budgetary assignments; character. When inflationary tendencies exist, the c) The net profits of the Bank of Guatemala, Bank shall be under obligation to contract its holdwhich, in accordance with Article 11 of this law, ings of such securities, through sales to the public are earmarked for the increase of the Fund; and, or through regular or extraordinary amortization. d) Idle funds resulting from budgetary sur- Time deposits—Art. 109. When inflationary tenpluses, or unused balances of the National Treasury dencies exist, the Monetary Board may authorize which may be temporarily included in the resources the acceptance by the Bank of Guatemala of private of the Fund by decision of the Monetary Board, time deposits. In case of such action, the Board with the favorable vote of the Minister of Finance. shall determine at the same time the interest rates, maturities and other pertinent conditions. Such Art. 114. The administration and investment of authority shall be cancelled as soon as the inflation- the resources of the Fund for the Regulation of ary danger has passed. the Bond Market shall be directed toward the stabi- Actual operations of receipt and withdrawal of lization of the quotations on securities issued or the deposits may be made through the medium of guaranteed by the State or by public entities, and banks authorized and qualified for the purpose of such other official or semi-official obligations as by the Monetary Board; but the funds deposited may be decided upon by the Security Commission. may not be maintained in the banks and must be Such stabilization shall be accomplished through credited immediately to the Bank of Guatemala, the purchase and sale of these bonds and obligations which shall be responsible for their repayment. in the open market, with avoidance of any inter- Inflationary inflows of foreign exchange—Art. vention which would run counter to fundamental 110. In periods of excessive inflows of foreign ex- trends of the market and threaten the exhaustion change of an inflationary character, if it is not of the Fund's resources. possible for the Bank to reduce the money supply Art. 115. The profits realized through the investto normal levels through the use of its ordinary in- ments of the Fund for the Regulation of the Bond struments of monetary policy, the Board shall re- Market, either from purchase and sale operations quest the Executive Power to propose to the Con- or through the receipt of interest on bonds and gress of the Republic the adoption of legal measures obligations acquired, shall accrue to the Fund itself, tending either partially to sterilize the funds origi- in order to increase its resources and capacity for MARCH 1946 285 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN BANKING LAWS AND REPORTS action and to accumulate reserves to cover possible Guatemala shall charge for the services which it losses in future operations. renders the State and its agencies the rates and Official banking operations—Art. 116. The Gov- commissions agreed upon with the respective auernment of the Republic and, in general, all agen- thorities. cies of the State, shall effect all their remittances, The Bank shall not pay interest upon Governexchange and monetary transactions, within the ment deposits nor upon deposits of public entities. country as well as abroad, through the medium of Financial advice—Art. 123. Whenever the Govthe Bank of Guatemala. ernment of the Republic intends to effectuate any Official deposits—Art. 117. The cash balances of credit operation abroad, the Minister of Finance the National Treasury, of public entities and of other shall request the opinion of the Monetary Board beofficial agencies shall be deposited in the Bank of fore deciding on the operation. Similar advice Guatemala, with the exception of the amounts must also be requested by all official institutions handled in the offices themselves, in conformity with for their credit operations abroad. the law, for payments of small amount. The advice of the Board shall be based on the Trust deposits in favor of the State, or any of its gold and foreign exchange resources and obligations agencies, as well as all classes of judiciary deposits, of the country, and on the incidence of the conshall also be made in the Bank of Guatemala. templated operation upon the balance of payments The Bank of Guatemala may accept the custody and the volume of the money supply. of securities, documents and other valuable objects Whenever the Government of the Republic or belonging to the State or its agencies. official institutions intend to contract loans within Art. 118. The Monetary Board may, with the the country itself, they shall also request the prefavorable vote of the Minister of Finance, and de- vious advice of the Monetary Board, in order that pending on the line of action which the monetary, the Board may communicate its opinion on the adexchange and credit situation makes advisable: visability of the project and coordinate its monetary and credit policy with financial and fiscal policy. a) Maintain official deposits in one or more banks of the country, or keep them temporarily Title V sterilized in the Bank of Guatemala; and, Balances and Publications b) Invest idle amounts in foreign exchange, or in foreign securities of the types mentioned in Article Balances—Art. 124. The Bank shall prepare and 77, or in national bonds or obligations, through publish, within the first eight days of each month, their temporary inclusion in the Fund for the a general balance sheet showing the statement of its Regulation of the Bond Market, in accordance with assets and liabilities as of the last business day of Article 113 of this law. the- preceding month. Similarly, the Bank shall publish monthly a table of the money supply of the Fiscal operations—Art. 119. The bank of Guate- country and a summary of all balances of the other mala shall open a general cash account for the banks, presenting summary consolidated figures National Treasury, in which all liquid funds of the under the various accounting classifications. These Government of the Republic shall be deposited. data shall be published in the official gazette, Transfers of funds from this account to other and in special bulletins. secondary accounts shall be made only by order of Financial year—Art. 125. The financial year of the competent officer of the National Treasury, the Bank of Guatemala shall be the calendar year. with the approval of the Court of Accounts. Annual Report—Art. 126. Before May 31 of each Art. 120. The Bank of Guatemala may take year the Bank of Guatemala shall publish an Ancharge of the collection of public revenues, directly nual Report containing: or indirectly, in accordance with such agreements a) An analysis of the financial situation of the as it may conclude with the Government of the Reinstitution and of its operations during the past public. year; Such funds shall be collected for the account and b) A report and analysis of the monetary, finanat the risk of the Bank of Guatemala, and shall be cial and economic events of importance to the coundeposited in the general cash account of the Natry; and, tional Treasury. c) The information necessary to explain the Art. 121. In the execution of fiscal operations monetary, credit and exchange policy of the Bank. for the State, the Bank of Guatemala may use the services of one or more banks maintaining branches Art. 127. The Annual Report shall include, in or agencies in the departments of the Republic. appendices, pertinent tables and graphs, and espe- Remuneration of sen/ices—Art. 122. The Bank of cially: 286 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN BANKING LAWS AND REPORTS a) The monthly movement of the money supply, c) The provisions of general character applicable distinguishing between: to exchange and banking activities, adopted by the Bank of Guatemala under the authority conferred i) Notes, coin and official and private deposits on it by law for the regulation of currency, credit of monetary character; and exchange. ii) That part of the money supply attributable to external factors, and that part which cor- The provisions referred to in this article shall beresponds to internal monetary creation by the come effective on the dates established for their Bank of Guatemala and the other banks; application, which dates may never be prior to the iii) The various factors of expansion and date of their publication. contraction which have determined the internal monetary creation; Title VI b) The final statement of the balance of pay- General Provisions ments for the past year, the net inflow or outflow of international reserves, and the monthly move- Injunctions—Art. 130. The Bank of Guatemala ment of exchange rates; is forbidden to: c) Price indexes for both the Republic and the a) Rediscount, discount, buy and sell credit docuprincipal foreign countries of importance to Guatements at charge of: mala as purchasers, sellers or competitors; and the comparative price movements of the principal na- i) The titular or alternate members of the tional export products; Monetary Board; the Manager, officers or emd) The monthly movement, in summary, of ex- ployees of the Bank of Guatemala, their wives, ports and imports, by volume and value; and their minor children; e) The principal data on receipts and expendi- ii) The President of the Republic, the Ministures of the public Treasury, and on the national ters of State, the secretaries of the Presidency, debt, both internal and external; their wives, and their minor children, and the f) The monthly movement, in condensed form, firms or companies in which the persons referred of the accounts of the Bank of Guatemala and of to in this clause hold participation or interest, the other banks, according to the groupings and with the exception of the banking institutions classifications which the Manager of the Bank shall operating within the country; determine, in agreement with the Director of the b) Grant extensions, renewals, or substitutions Department of Economic Research and the Superof the credit documents acquired by the Bank, or intendent of Banks, and with the approval of the of the advances and loans made by it, except in Monetary Board; special cases, upon determination by the Monetary g) A list of the stabilization bonds matured or Board; in such cases the Board may extend the obcalled in the past 10 years, but not yet presented ligation once only, and for a period not to exceed for payment; and, one-half of its original period. Exception shall h) The text of important legal or administrative be made for credits granted for the financing of provisions adopted during the preceding year which operations of price stabilization in accordance with relate to the functions of the Bank of Guatemala. Article 85, clause (e), of this law;' Art. 128. The balances, accounts and statements c) Effect any operations not authorized by this of the Bank of Guatemala shall be signed by the law or by the Monetary Law, except those which, officers responsible for their preparation and, in though not prohibited, are compatible with its addition, by the President and the Manager of the central banking character and necessary for the Bank. fulfillment of its duties and functions. Other publications—Art. 129. The Bank of The members of the Monetary Board, officers Guatemala shall publish, in periodicals having wide and employees of the Bank of Guatemala, who aucirculation within the country, and preferably in thorize, or acquiesce in, any prohibited operation the official gazette: shall be removed from their positions; in addition, a) The resolutions establishing or modifying they shall be held personally and jointly responsible the minimum rediscount rates of the Bank of for any harm or damage their action has caused. Guatemala, and the maximum rates upon active Tax exemptions—Art. 131. The Bank of Guateand passive operations of the banks; mala shall be exempt from all kinds of taxes, rates b) The resolutions establishing or modifying and assessments, fiscal or municipal, now in force the minimum bank reserves and regulating the or to be established in the future. clearing system; and, The preceding exemptions cover all movable or MARCH 1946 287 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN BANKING LAWS AND REPORTS immovable property of the Bank of Guatemala, coin which form the present monetary circulation its resources, profits and income of every kind, as of the Republic shall continue with their same well as all kinds of deeds, contracts, and business value, and shall circulate legally with unlimited which it may transact; but they shall apply only legal tender, as long as they are not legally replaced to taxes for which the Bank itself is liable, and not by the notes and coin to be issued by the Bank of to taxes payable by individuals who negotiate or Guatemala. contract with the institution. Art. 136. A special law shall establish the transi- Art. 132. The Bank of Guatemala shall be fully tory provisions relating to the organization of the exempt from custom duties for the import and Bank of Guatemala and to the transfer in its export of gold and metals used in monetary coin- favor of the monetary functions in charge of the age, and for the importation of all equipment needed present Central Bank of Guatemala. for the organization, installation and functioning Art. 137. The present law shall become effective of its offices. 10 days after its publication in the official gazette. The exemptions granted in the preceding para- Nevertheless, the provisions granting attribugraph shall be subject to the procedure established tions, powers and functions to the Bank of Guateby the laws of the Republic, and the importing and mala and to the Monetary Board shall enter into exporting shall be effected with complete freedom force three days after the resolution in which the from fiscal and consular duties, as well as from any Executive Power shall declare the Bank of Guateother assessments, taxes, rates and surcharges re- mala to be established. lated to the import or export of the merchandise, The present decree shall be sent to the Executive or collected by reason thereof. Power for its publication and enforcement. Notwithstanding the exemption from import Given in the Congressional Palace of the Reduties, the Bank of Guatemala shall give prefer- public: in Guatemala City, on the eleventh of ence to national products when they can be ob- December, nineteen hundred and forty-five, second tained under conditions equal to those applying to year of the Revolution. imports. JULIO BONILLA G. Amendments—Art. 133. Amendments to the President present law shall require for their approval the E. ZEA GONZALEZ JULIO VALLADARES C. favorable vote of two-thirds of the representa- Secretary Secretary tives composing the Congress of the Republic. Abrogation of laws in conflict with present law— National Palace: Guatemala City, twentieth of Art. 134. Decree No. 67 of the Revolutionary Coun- December, nineteen hundred and forty-five. cil of Government is hereby abrogated, together Publish and execute. with all laws, decrees, resolutions and provisions JUAN JOSE AREVALO. contrary to the present law. Transitory provisions—Art. 135. The notes issued The Minister of State for Economy and Labor by the Central Bank of Guatemala and the national M. NORIEGA M. 288 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NATIONAL SUMMARY OF BUSINESS CONDITIONS [Compiled February 26, and released for publication February 28] Output at factories declined further in January types of machinery continued to increase. Activity and the early part of February owing to work in the automobile industry rose in January, even stoppages. Production and employment in most though plants of the leading producer remained nonmanufacturing lines, however, continued to closed by a labor-management dispute. About twice advance and the value of retail trade was main- as many automobiles and trucks were assembled tained considerably above last year's level. in January as in December. Passenger car assemblies were at an anuual rate of 700,000 cars which, how- INDUSTRIAL PRODUCTION ever, was only about one-fifth of the 1941 rate. Wage disputes sharply reduced output in the Lumber production rose, considerably in January iron and steel and electrical machinery industries and there were substantial increases in output of during January and the early part of February. most other building materials from previous low These decreases were oflset in part by increased levels. Production gains were also recorded in Januoutput in most other manufacturing lines and in ary at textile and paper mills, at printing and pubmining. The Board's index of total industrial pro- lishing establishments, and in the furniture, tobacco, duction was at a level of 159 per cent of the 1935-39 chemical, and rubber products industries. average in January, as compared with 164 in Output of minerals rose 5 per cent in January, December. reflecting large increases in output of anthracite and Steel mill operations, which averaged 83 per cent bituminous coal and a small gain in production of of capacity in the first three weeks of January, crude petroleum. Coal production in January and dropped to around 6 per cent during the succeed- the first part of February was at a rate about 8 per ing four weeks. Since settlement of the wage dis- cent above a year ago. pute in the steel industry, output has recovered sharply and during the last week of February oper- EMPLOYMENT ations were scheduled at 59 per cent of capacity. Employment at trade establishments in January Activity in machinery industries declined about showed a much smaller decline than is usual after 5 per cent in January, mainly because of work the Christmas season and employment in most stoppages in plants of leading electrical equipment other industries continued to advance. Construction producers after January 15. Output of most other EMPLOYMENT IN NONAGRICULTURAL ESTABLISHMENTS MILLIONS OF PERSONS MILLIONS OF PERSONS INDUSTRIAL PRODUCTION PHYSICAL VOLUME SEASONALLY ADJUSTED, 1935-39-100 - -260 240 - Vf - \ A - - / - - - - Bureau of Labor Statistics monthly estimates, adjusted for 1940 1941 1942 1943 1944 1945 seasonal variation by Federal Reserve. "Other" group includes transportation, public utilities, finance, service and miscellaneous Federal Reserve index. Monthly figures, latest shown are for industries. Proprietors and domestic workers are not included January. in these estimates. Latest figures shown are for January. MARCH 1946 289 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NATIONAL SUMMARY OF BUSINESS CONDITIONS employment in January was double the level in the advances and sellers now may ask for immediate same month last year, and, following large increases price relief rather than waiting six months. Acsince last autumn, employment in the trade, finance, companying this action steel prices were raised by service, and miscellaneous industries was sub- 8 to 9 per cent. Ceiling prices for a number of other stantially larger than a year ago. Employment at manufactured products, including certain foods, factories was about one-fifth lower than at the be- cotton goods, paper, and lumber, have also been inginning of 1945 as reductions in munitions employ- creased in recent weeks. ment was only partly offset by increases in other employment. Unemployment rose somewhat further BANK CREDIT by the middle of January to a level of 2,300,000 Treasury deposits increased by more than one persons. billion dollars in the five weeks ending February DISTRIBUTION 20, reflecting large Treasury tax receipts, reduced Value of department store sales in January was expenditures, and sales of savings bonds and tax 15 per cent above last year and in the first half of savings notes in excess of securities redeemed. February the increase was larger. Retail sales at Deposits, other than Government and interbank, stores selling furniture, building materials, and showed little change during this period, in contrast other durable goods were from 25 to 40 per cent to developments in former post-drive periods when above a year ago in January and the total value of funds were shifted rapidly from Treasury balances retail trade since the first of the year has been about to accounts of businesses and individuals. Bank one-fifth higher than during the same period last loans made for purchasing and carrying Governyear. ment securities were further reduced, while com- Railroad freight traffic was reduced from the mercial, industrial, and agricultural loans continued middle of January to the middle of February owing to increase. mainly to the work stoppage in the steel industry. Banks continued to increase their holdings of Shipments of agricultural commodities, coal, and Government securities, purchasing bonds in the general merchandise, however, remained at high market and Treasury certificates from the Federal levels. Reserve Banks. Nonreporting banks drew upon COMMODITY PRICES their balances with city correspondents to increase Federal price policies were modified in the their loans and investments. City banks met this middle of February to permit increases in ceilings and other drains in part by selling bills to the made necessary by Federally approved wage-rate Reserve Banks. COST OF LIVING MEMBER BANKS IN LEADING CITIES PER CENT 1935 -39-100 PER 160 AxF00D f\ /N-/1 120 ^LLVTB/IS 110 ^\ - RENT — 100 80 1939 1940 1941 Demand deposits (adjusted) exclude U. S. Government and Bureau of Labor Statistics' indexes. Last month in each interbank deposits and collection items. Government securities calendar quarter through September 1940, monthly thereafter. include direct and guaranteed issues. Wednesday figures, Mid-month figures, latest shown are >for January. ' latest shown are tor *eb- 20- 290 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FINANCIAL, INDUSTRIAL, AND COMMERCIAL STATISTICS UNITED STATES Member bank reserves, Reserve Bank credit, and related items 293 Federal Reserve Bank discount rates; rates on industrial loans, guarantee fees and rates under Regulation V; rates on time deposits; reserve requirements; margin requirements. . 294-295 Federal Reserve Bank statistics. . 295-299 Guaranteed war production loans. . . 299 Deposits and reserves of member banks. 299-300 Money in circulation 301-302 Gold stock; bank debits and deposit turnover 302 Deposits and currency; Postal Savings System; bank suspensions. . 303 All banks in the United States, by classes 304-305 All insured commercial banks in the United States, by classes. 306-307 Weekly reporting member banks . 308-311 Commercial paper, bankers' acceptances, and brokers' balances. . 312 Money rates and bond yields. . . 313 Security prices and new issues... 314-315 Corporate earnings and dividends. 316 Treasury finance 317-319 Government corporations and credit agencies. 320 Business indexes .... 321-330 Department store statistics. . 331-333 Consumer credit statistics. . 334-335 Wholesale prices 336 Gross national product, national income, and income payments. 337 Current statistics for Federal Reserve chart book. 338-339 Tables on the following pages include the principal available statistics of current significance relating to financial and business developments in the United States. The data relating to the Federal Reserve Banks and the member banks of the Federal Reserve System are derived from regular reports made to the Board; index numbers of production are compiled by the Board on the basis of material collected by other agencies; figures for gold stock, money in circulation, Treasury finance, and operations of Government credit agencies are obtained principally from statements of the Treasury, or of the agencies concerned; data on money and security markets and commodity prices and other series on business activity are obtained largely from other sources. Back figures for banking and monetary tables, together with descriptive text, may be obtained from the Board's publication, Banking and Monetary Statistics; back figures for most other tables may be obtained from earlier BULLETINS. 291 MARCH 1946 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 30 30 25 20 15 10 1939 1940 1941 1942 1943 1944 ' 1945 1946 1939 1940 1941 1942 1943 1944 1945 1946 Wednesday figures, latest shown are for Feb. 20. See p. 293. 292 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 bank reserve Date c v o D a a a n u n i d s c n d - - e ts s To U t . a l S. s e G T c b a o u u re i n r v r l a i y l d e t s s i r - 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 ld k T s r t c o e u r i a u e n n u r n a y r g c t d - - s y - - M i c n t u o io c l n a n i e r - y - T h c i u r o n a e r l s g a y d h s s - - F u T B p e s w r R r o e d y a e i r s e e n t a v - i r h d k t s e a e s s - - l b p m N e o e r o s m n d i - - t e s - c O s F o e R e a t u e r c r e h a d - v n - e l - e t r s To b ta a l lanc c E e e x s s - s2 certificates Monthly averages of daily figures: 1944—Nov 43618,129 15,775 2,354 445 19,009 20,708 4,116 24,738 2,340 262 1,579 39514,520 ,023 Dec 26518,693 15,895 2,798 654 19,61220,657 4,125 25,207 2,355 666 1,595 40314,168 ,284 1945—Jan 11818,726 15,956 2,770 543 19,38720,582 4,129 25,243 2,371 532 1,501 40314,048 ,114 Nov 636 23,333 20,390 2,943 420 24,38920,033 4,290 28,151 2,268 419 1,347 48516,043 ,167 Dec 38123,708 20,649 3,059 654 24,744 20,047 4,322 28,452 2,269 625 1,247 49316,027 ,498 1946—Jan 232 23,590 21,147 2,443 476 24,298 20,106 4,375 28,158 2,265 648 1,282 50515,921 ,311 End of month figures: 1944—Nov. 30... 47318,388 16,031 2,357 496 19,357 20,688 4,122 25,019 2,327 138 1,561 39514,728 ,124 Dec. 31. .. 8018,846 16,035 2,812 819 20,619 4,131 25,307 2,375 440 1,598 40214,373 ,625 1945—Jan. 31... 176 19,006 16,272 2,734 370 19,552 20,550 4,127 25,290 2,371 648 1,634 40213,884 869 Nov. 30... 775 23,472 20,393 3,079 450 20,030 4,303 28,211 2,239 866 1,209 48316,022 1,024 Dec. 31... 249 24,262 21,196 3,067 580 20,065 4,339 28,515 2,287 977. 1,308 49515,915 1,471 1946—Jan. 31... 294 23,264 20,913 2,352 418 23,976 20,156 4,406 27,917 2,293 845 1,295 506 15,682 1,089 Wednesday figures: 1945—Apr. 4... 22019,580 17,414 2,167 455 20,25520,418 4,117 25,865 2,379 335 1,420 43814,353 934 Apr. 11. .. 323 20,091 17,975 2,116 349 20,763 20,417 4,118 25,939 2,364 409 1,553 43914,593 946 Apr. 18... 341 20,153 18,037 2,116 478 -- --- 20,396 4,117 26,068 2,374 430 ,594 43714,582 806 Apr. 25... 508 20,444 18,331 2,113 358 21,310 20,374 4,120 26,074 2,371 651 ,563 43714,708 835 May 2... 569 20,479 18,374 2,104 358 21,406 20,374 4,130 26,204 2,382 423 ,571 438L4.892 927 May 9... 552 20,720 18,617 2,103 318 20,352 4,132 26,312 2,384 447 ,463 43915,029 961 May 16... 487 20,668 18,555 2,113 432 21,587 20,351 4,137 26,372 2,376 102 ,541 4_3.8. 15,246 1,045 May 23... 724 20,929 18,809 2,120 327 21,980 20,271 4,142 26,399 2,319 526 ,592 440 15,117 866 May 30... 886 21,023 18,891 2,132 349 22,258 20,270 4,141 26,500 2,315 426 ,619 439 15,371 1,113 June 6... 912 20,896 18,126 2,771 398 22,207 20,268 4,145 26,513 2,314 352 ,546 44315,452 1,098 June 13. . . 85: 21,103 18,323 2,780 392 22,34720,268 4,146 26,533 2,292 170 ,550 44415,771 1,237 June 20. .. 30721,507 18,710 2,797 473 22,28720,265 4,145 26,536 2,297 347 ,710 45215,354 1,454 June 27. .. 20321,693 18,896 2,797 315 22,21120,263 4,144 26,628 2,314 687 ,774 454 14,760 1,362 July 3... 3921,745 18,948 2,798 464 22,24920,213 4,145 26,834 2,285 667 1,647 45014,722 1,408 July 11... 7321,544 18,747 2,798 411 22,02820,214 4,145 26,932 2,230 585 1,617 45314,570 1,136 July 18... 12621,613 18,816 2,798 430 22,170 20,213 4,144 26,901 2,274 690 ,553 45014,660 1,048 July 25... 22921,570 18,771 2,799 331 22,12920,212 4,144 26,926 2,279 594 ,539 45014,699 994 Aug. 1... 39921,877 19,066 2,811 288 22,56420,152 4,198 27,130 2,260 678 ,532 45414,861 1,063 Aug. 8... 35321,910 19,099 2,811 342 22,60620,151 4,197 27,269 2,269 538 ,588 45714,833 1,066 Aug. 15... 31221,869 19,058 2,811 601 22,78220,130 4,198 27,351 2,257 398 ,643 45815,004 1,132 Aug. 22... 40022,296 19,466 2,829 447 23,14220,088 4,201 27,506 2,248 671 ,557 45814,992 1,018 Aug. 29. .. 44: 22,358 19,516 2,841 263 23,06320,088 4,215 27,600 2,262 397 ,577 45815,070 986 Sept. 5... 37722,435 19,670 2,765 380 23,19220,088 4,216 27,750 2,269 304 ,529 46315,180 966 Sept. 12... 45' 22,808 20,014 2,795 412 23,67720,096 4,216 27,793 2,267 598 ,538 46515,329 964 Sept. 19. .. 30122,965 20,116 2,850 441 23,70720,095 4,222 27,777 2,268 428 ,525 47515,552 1,039 Sept. 26... 422 23,186 20,306 2,880 285 23,89220,093 4,222 27,729 2,263 961 ,506 47515,274 893 Oct. 3... 314 23,212 20,297 2,916 294 23,82120,072 4,248 27,853 ,268 648 ,469 48415,420 1,001 Oct. 10... 31323,272 20,357 2,916 338 23,92320,040 4,257 27,962 ,282 535 ,419 48515,537 1,027 Oct. 17... 31622,901 19,985 2,916 482 23,69920,039 4,262 27,952 2,249 293 ,324 48215,700 1,032 Oct. 24. .. 38923,089 20,192 2,898 312 23,79020,038 4,270 27,974 2,248 295 ,349 48215,751 1,002 Oct. 31... 439 23,276 20,379 2,898 272 23,98720,036 4,278 28,049 2,244 429 ,373 48315,723 904 Nov.* 7... 508 23,076 20,179 2,898 292 23,87720,035 4,285 28,137 2,268 261 ,310 48415,737 928 Nov. 14. .. 59623,448 20,510 2,938 455 24,49820,034 4,284 28,178 2,265 580 ,313 48615,994 1,163 Nov. 21. .. 63023,343 20,372 2,970 359 24,33120,032 4,297 28,198 2,272 410 ,360 48415,937 1,043 Nov. 28... 792 23,646 20,627 3,019 326 24,76420,031 4,297 28,169 2,269 557 ,351 48516,261 1,293 Dec. 5... 34523,525 20,474 3,052 359 24,229 20,029 4,303 28,279 2,242 8 ,304 48716,242 ,594 Dec. 12. .. 31223,493 20,440 3,053 460 24,264 20,045 4,317 28,370 627 ,204 48815,669 ,296 Dec. 19... 360 23,668 20,602 3,067 829 24,859 20,066 4,326 28,557 718 ,284 49615,906 ,332 Dec. 26... 49224,037 20,970 3,067 643 25,172 20,065 4,334 28,649 2,283 1,199 ,282 500 15,658 ,213 1946—Jan. 2... 22224,092 21,602 2,490 533 24,84720,065 4,352 28,491 2,306 771 ,299 49815,900 ,439 Jan. 9... 215 23,859 21,377 2,482 463 24,53620,046 4,362 28,297 758 ,307 50515,822 ,266 Jan. 16... 210 23,437 21,030 2,407 426 24,07220,111 4,377 28,119 272 ,257 50516,145 ,423 Jan. 23... 20723,341 20,968 2,373 373 23,92220,135 4,385 27,977 578 .239 50615,859 .169 Jan. 30... 310 23,297 20,945 2,352 291 23,898 20,157 4,404 27,914 762 1,298 50715,681 ,061 Feb. 6... 28923,227 20,876 2,352 324 23,840 20,157 4,413 27,929 2,306 716 1,226 51615,717Pl.224 Feb. 13... 41123,253 20,904 2,349 270 23,93320,157 4,424 27,967 2,301 864 1,173 51615,693P1,238 Feb. 20... 35223,017 20,692 2,326 417 23,78720,233 4,434 27,955 2,318 940 1,235 51615,490Pl.056 P Preliminary. 1 Includes industrial loans and acceptances purchased shown separately in subsequent tables. 2 End of month and Wednesday figures are estimates. Back figures.—See Banking and Monetary Statistics, Tables 101-103, pp. 369-394; for description, see pp. 360-366 in the same publication. MARCH 1946 293 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BANK DISCOUNT RATES [In effect February 28. Per cent per annum] Discounts for and advances to member banks Advances to individuals, partnerships, Advances secured by or corporations other than member banks A G d o v v a e n r c n e m s e s n e t c u o r b e l d ig b a- y Go m v a e t r u n r m in e g n t o o r b c l a ig ll a a t b io le ns secured by d (l i a re s c t t p o a b r. l i S g e a c ti . o 1 n 3 s ) of the U. S. Feder B al a n R k eserve c t a i o l o l r a n b l s e l s e m s i a n ( t S u o e r n c in . e g 1 y 3 o e ) a r r b a e d y d v o i a s n n c d c o e u o s n n t s e s e c o y u f e r a e a r d n a d b n y d Other [ s S e e c c u . re 1 d 0 ( a b d )J vances eligible paper To nonmember banks To others (Sees. 13 and 13a)i Rate Effective Rate Effective Rate Effective Rate Effective Rate Effective Boston Oct. 27,1942 Sept. 1,1939 Oct. 27,1942 Sept. 1,1939 Oct. 27,1942 New York Oct. 30,1942 Aug. 25,1939 Oct. 30,1942 Aug. 25,1939 Oct. 30,1942 Philadelphia Oct. 17,1942 Mar. 21,1942 Oct. 17,1942 Mar. 21,1942 Oct. 17,1942 Cleveland Oct. 27,1942 Apr. 11,1942 Sept. 12,1942 Apr. 11,1942 2 Oct. 27,1942 Richmond Oct. 28,1942 Mar. 14,1942 Oct. 28,1942 Mar. 14,1942 Oct. 28, 1942 Atlanta Oct. 15,1942 Mar. 21,1942 Oct. 15,1942 Sept. 16,1939 2 Oct. 15,1942 Chicago Oct. 17,1942 Feb. 28,1942 Aug. 29,1942 Sept. 1,1939 2 Oct. 17,1942 St. Louis Oct. 27,1942 Mar. 14,1942 Mar. 14,1942 Sept. 16,1939 2 Oct. 27,1942 Minneapolis Oct. 30,1942 Mar. 28,1942 Oct. 30,1942 Mar. 28,1942 2H Oct. 30, 1942 Kansas City Oct. 27,194*2 Apr. 11,1942 Oct. 27,1942 Sept. 16,1939 Oct. 27, 1942 Dallas.... Oct. 17,1942 Mar. 21,1942 Oct. 17,1942 Sept. 16,1939 2 Oct. 17,1942 San Francisco. . . . Oct. 28,1942 Apr. 4,1942 Oct. 28,1942 Apr. 4,1942 Oct. 28, 1942 1 Rates shown also apply to advances secured by obligations of Federal intermediate credit banks maturing within 6 months. NOTE.—Maximum maturities for discounts and advances to member banks are: 15 days for advances secured by obligations of the Federal Farm Mortgage Corporation or the Home Owners' Loan Corporation guaranteed as to principal and interest by the United States, or by obligations of Federal intermediate credit banks maturing within 6 months; 90 days for other advances and discounts made under Sections 13 and 13a of the Federal Reserve Act (except that discounts of certain bankers' acceptances and of agricultural paper may have maturities not exceeding 6 months and 9 months, respectively); and 4 months for advances under Section 10(b). The maximum maturity for advances to individuals, partnerships, or ' corporations made under the last paragraph of Section 13 is 90 days. Back figures.—See Banking and Monetary Statistics, Tables 115-116, pp. 439-443. FEDERAL RESERVE BANK BUYING RATES ON BILLS FEDERAL RESERVE BANK RATES ON INDUSTRIAL LOANS IPer cent per annum] AND O C F O T M H M E IT F M ED E E N R T A S L U R N E D S E E R R V S E E C A T C IO T N 1 13b Maturities not exceeding five years Rate on In effect be- Previous Maturity Feb.28 ginning— rate [In effect February 28. Per cent per annum] To industrial or Treasury bills *'. H Apr. 30, 1942 commercial To financing institutions Bankers' acceptances:2 businesses 1- 90 days Oct. 20, 1933 1 91-120 days Oct. 20, 1933 1 On discounts or 121-180 days l Oct. 20, 1933 Federal purchases Reserve Bank On On Portion On to 1 b E u s y t a a b l l l i s T he r d ea s r u a r t y e b a i t l ls w o h f i f c e h re d F . ede E r f a f l e ct R iv e e s er A v u e g . B 3 a , n k 1 s 9 42 st , a n p d u rc r h e a a s d e y s loans2 co m m e m nt i s t- fo in r s w ti h tu ic - h ma R in e- ing co m m en m t i s tof such bills, if desired by the seller, were made on condition that the tion is portion Reserve Bank, upon request before maturity, would sell back bills of obligated like amount and maturity at the same rate of discount. Since May 15, 2 M 19 i 4 n 3 im , a u l m l p b u u rc y h in a g se r s a t h e a s v e o n b e p e ri n m m e a b d a e n k s e u r b s j ' e c a t c c t e o p t r a e n p c u e r s c . hase option. N Bo ew sto Y n ork ( 8 4) Back figures.—See Banking and Monetary Statistics, Table 117, Philadelphia. . . pp. 443-445. Cleveland Richmond •8 Atlanta () GUARANTEE FEES AND MAXIMUM INTEREST AND COM- Chicago 2H-5 MITMENT RATES CHARGEABLE UNDER REGULATION St. Louis 11H V ON LOANS GUARANTEED BY WAR DEPARTMENT, Minneapolis. . . NAVY DEPARTMENT, AND MARITIME COMMIS- Kansas City. . . SION UNDER EXECUTIVE ORDER NO. 9112 AND Dallas CONTRACT SETTLEMENT ACT San Francisco.. OF 1944 [Rates in effect February 28] 1 See table on maximum interest and commitment rates chargeable under Regulation V for rates on guaranteed Section 13b loans. FEES PAYABLE TO GUARANTOR BY FINANCING INSTITUTIONS 2 Including loans made in participation with financing institutions. 3 Rate charged borrower less commitment rate. Guarantee fee 4 Rate charged borrower. (In terms of per- 6 May charge rate charged borrower by financing institution, if Percentage of loan guaranteed centage of amount lower. of interest payable 8 Charge of H per cent is made on undisbursed portion of loan. by borrower)1 Back figures.—See Banking and Monetary Statistics, Table 118, pp. 446-447. MAXIMUM RATES ON TIME DEPOSITS 80 or less . . . 10 85 15 Maximum rates that may be paid by member banks as established by 90 . 20 the Board of Governors under provisions of Regulation Q 95 30 [Per cent per annum] Over 95 50 Nov. 1,1933-Feb. 1, 1935- Effective Jan.31, 1935Dec.31,1935 Jan. 1, 1936 MAXIMUM RATES THAT MAY BE CHARGED BORROWERS BY FINANCING INSTITUTION? Savings deposits Postal savings- deposits [Per cent per annum] Other deposits payable: In 6 months or more In 90 days to 6 months. . . . Maximum rate of interest.... In less than 90 days Maximum commitment rate 2. NOTE.—Maximum rates that may be paid by insured nonmember 1 Guarantee fee is charged only on guaranteed portion of loan. banks as established by the F. D. I. C, effective Feb. 1, 1936, are the 2 Based on average daily unused balance of the maximum principal same as those in effect for member banks. Under Regulation Q the amount of the loan. The financing institution may, in the alterna- rate payable by a member bank may not in any event exceed the maxitive, charge a flat fee of not to exceed $50, without regard to the mum rate payable by State banks or trust companies on like deposits amount or maturity of the commitment. under the laws of the State in which the member bank is located. 294 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MEMBER BANK RESERVE REQUIREMENTS MARGIN REQUIREMENTS * [Per cent of deposits] [Per cent of market value] Net demand deposits1 Period in effect C re e c s n i e t t r y r v a e l R b e c a s i n e ty k rv s e C b o a u n n k t s ry d m b e T a e p ( i n m a o m k l s b l e s i e ) ts r S P ec re u s r c it r i i e b s e d E x in c h a a c n c g o e r d A a c n t c e o f w 1 i 9 th 34 F J 1 u 1 e 9 l 9 b y 4 4 . 5 5 4 5 - , , J J a 1 u 1 n 9 l 9 . y 4 4 5 2 6 5 - 0 , , J E a 1 t n f i 9 f . v e 4 2 e c 6 - 1. banks Regulation T: For extensions of credit by brokers June 21, 1917-Aug. 15, 1936.. 13 10 7 3 and dealers on listed securities 50 75 100 Aug. 16, 1936-Feb. 28, 1937.. 19H 15 10H 4^ 50 75 100 M M a ay r. 1 1 , , 1 1 9 9 3 3 7 7 - - A A p p r r . . 3 1 0 5 , , 1 1 9 9 3 3 8 7 . . . . 2 26 2% 2 1 0 7K \lH 6 Re F g o u r l a l t o io an n s U by : banks on stocks 50 75 100 Apr. 16, 1938-Oct. 31,1941.. 22% 17H 5 A N u o g v . . 20 1 , , 1 1 9 94 4 1 2 - - A Se u p g t . . 1 19 3 , , 1 1 9 9 4 4 2 2 . . . . 2 2 6 4 2 2 0 0 1 1 2 4 6 6 1 Regulations T and U limit the amount of credit that may be ex- Sept. 14, 1942-Oct. 2, 1942.. 22 20 14 6 tended on a security by prescribing a maximum loan value, which is a Oct. 3, 1942 and after 20 20 14 6 specified percentage of its market value at the time of the extension; the 14 "margin requirements" shown in this table are the difference between the market value (100%) and the maximum loan value. 1 Demand deposits subject to reserve requirements, i. e., demand Back figures.—See Banking and Monetary Statistics, Table 145, p. 504. deposits other than war loan deposits, minus cash items in process of collection and demand balances due from domestic banks. PRINCIPAL ASSETS AND LIABILITIES OF ALL FEDERAL RESERVE BANKS [In thousands of dollars] Wednesday figures End of month Item 1946 1946 1945 Feb. 27 Feb. 20 Feb. 13 Feb. 6 Jan. 30 Jan. 23 Jan. 16 February January February Assets Gold certificates 17,266,565 17,248,560 17,188,565 17,188,565 17,188,565 17,163,565 17,163,565 17,266,563 17,188,565 17,724,865 Redemption fund for F. R. notes 782,367 794,410 794,408 794,425 794,424 794,424 796,381 782,368 794,423 620,810 Total gold certificate reserves.... 18,048,932 18,042,970 17,982,973 17,982,990 17,982,989 17,957,989 17,959,946 18,048,931 17,982,988 18,345,675 Other cash 353,515 348,732 347,008 349,199 356,110 339,219 313,990 357,973 358,700 264,374 Discounts and advances: For member banks... 340,075 312,610 366,015 243,975 264,990 160,105 162,900 307,400 249,215 320,776 For nonmember banks, etc 40,000 40,000 45,000 45,040 45,040 47,040 47,040 40,000 45,040 Total discounts and advances 380,075 352,610 411,015 289,015 310,030 207,145 209,940 347,400 294,255 320,776 Industrial loans 1,589 1,754 1,751 1,762 1,783 1,843 1,826 1,546 1,799 3,801 U. S. Gov't securities: Direct: Under repurchase option 5,320,458 5,343,071 5,283,470 5,214,383 5,244,960 5,172,169 4,912,161 5,196,921 5,144,726 5,027,092 Other 7,785,774 7,754,464 7,776,914 7,721,064 7,643,274 7,609,864 7,588,025 7,841,189 7,721,064 6,803,294 Certificates: Special Other 7,546,211 7,594,211 7,843,711 7,940,211 8,056,711 8,186,211 8,529,911 7,546,211 8,046,711 4,917,140 Notes 1,372,700 1,378,700 1,401,700 1,404,700 1,404,700 1,426,200 1,459,700 1,372,700 1,404,700 1,559,721 Bonds 946,892 946,892 946,892 946,89" 946,892 946,892 946,892 946,892 946,892 1,132,072 Guaranteed Total U. S. Govt. securities.including guaranteed securities 22,972,03523,017,338 233,252,68723,227,25023,296,53723,341,336 233,436,689 22,903,91323,264,09319,439,319 Other Reserve Bank credit outstanding 322,969 415,386 267,780 322,139 289,160 371,443 423,616 395,313 415,960 394,157 Total Reserve Bank credit outstanding 23,676,668 23,787,088 23,933,233 23,840.166 23,897,510 23,921,767 24,072,07123,648,172 23,976,107 20,158,053 Liabilities Federal Reserve notes.. 24,124,304 24,151,094 24,155,038 24,149,47024,147,899 24,208,91224,342,950 24,130,539 24,153,383 22,162,307 Deposits: Member bank — reserve account 15,555,461 15,490,10615,693,10215,716,69815,681,18715,859,41216,145,17915,537,35515,681,69114,228,453 U. S. Treasurer—general account 826,157 940,449 864,040 716,22 762,397 577,706 272,196 829,035 845,456 460,184 Foreign 780,650 808,48 749,834 828,188 872,265 837,273 835,651 781,274 888,398 1,191,796 Other deposits 422,058 426,179 423,312 398,13 425,407 401,953 421,398 411,230 406,127 389,096 Total deposits 17,584,326 17,665,216 17,730,288 17.659,246 17,741,256 17,676.344 17,674,424 17,558,894 17,821,672 16,269,529 Ratio of gold certificate reserves to deposit and F. R. note liabilities combined (per cent).. 43.3 43.1 42.9 43.0 42.9 42.9 42.7 43.3 47.7 MATURITY DISTRIBUTION OF LOANS AND U. S. GOVERNMENT SECURITIES HELD BY FEDERAL RESERVE BANKS [In thousands of dollars] Within 16 to 30 31 to 60 61 to 90 91 days to 6 months 1 year to 2 years to Over February 27, 1946 Total 15 days days days days 6 months to 1 year 2 years 5 years 5 years Discounts and advances 380,075 302,660 17,850 6,675 52,890 Industrial loans 1,589 1,397 45 6 6 21 89 14 11 U. S. Government securities 22,972,0353,845,102 2,134,927 5,425,492 4,442,332 1,786,7924,286,700 360,000 690,690 MARCH 1946 295 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] New Phila- Cleve- Rich- St. Minne- Kansas San Total Boston York delphia land mond Atlanta Chicago Louis apolis City Dallas Francisco Assets Gold certificates: Jan. 23. 17,163,565 729,738 5,340,766 822,152 ,112,864 895,766 951,7352,781,907 556,293 327,154 575,980 460,8362,608,374 Jan. 30 17,188,565 735,795 5,385,707 839,283 ,075,299 911,207 955,2932,839,347 553,642 321,814 568,159 465,6902,537,329 Feb. 6 17,188,565 733,069 5,439,232 828,178 ,092,345 920,958 961,999 2,767,999 562,883 325,487 571,462 470,665 2,514,288 Feb. 13 17,188,565 738,489 5,393,914 813,881 ,089,508 907,312 986,229 2,762,164 580,231 324,501 576,303 461,9342,554,099 Feb. 29 17,248,560 750,252 5,368,167 818,533 ,105,002 881,977 995,661 2,833,424 547,107 325,692 565,278 457,3262,600,141 Redemption fund for F. R. notes: Jan. 23 794,424 58,979 108,129 60,826 77,768 62,665 45,129 145,042 42,921 20,119 35,178 26,086 111,582 Jan. 30 794,424 58,979 108,129 60,826 77,768 62,665 45,129 145,042 42,921 20,119 35,178 26,086 111,582 Feb. 6 794,425 58,979 108,129 60.826 77,769 62,665 45,129 145,042 42,921 20,119 35,178 26,086 111,582 Feb. 13 794,408 58,978 108,121 60,825 77.768 62,664 45,128 145,042 42,921 20,119 35,177 26,085 111,580 Feb. 20 794,410 58,978 108,121 60,825 77,768 62,664 45,128 145,042 42,922 20,119 35,177 26,086 111,580 Total gold certificate reserves: Jan. 23 17,957,989 788,717 5,448,895 882,978 ,190,632 958,431 996,864 2,926,949 599,214 347,273 611,158 486,922 ,719,956 Jan. 30 17,982,989 794,774 5,493,836 900,109 ,153,067 973,8721,000,422 2,984,389 596,563 341,933 603,337 491,776 :,648,911 Feb. 6 17,982,990 792,048 5,547,361 889,004 170,114 983,6231,007,128 2,913,041 605,804 345,606 606,640 496,751 ,625,870 Feb. 13 17,982,973 797,467 5,502,035 874,706 167,276 969,9761,031,3572,907,206 623,152 344,620 611,480 488,019 ,665,679 Feb. 20 18,042,970 809,230 5,476,288 879,358 182,770 944,6411,040,7892,978,466 590,029 345,811 600,455 483,412 ,711,721 Other cash: Jan. 23 339,219 28,966 63,811 23,771 29,209 23,769 32,705 42,982 18,947 6,704 16,321 13,239 38,795 Jan. 30 356,110 29,504 62,570 24,807 27,847 26,417 37,037 46,715 19,389 7,270 17,415 13,717 43,422 Feb. 6 349,199 29,968 67,017 24,207 30,605 25,597 32,644 44,938 18,739 5,952 16,629 12,634 40,269 Feb. 13 347,008 32,957 64,334 24,002 28,397 27,269 33,599 44,309 17,382 6,027 16,800 11,229 40,703 Feb. 20 348,732 32,971 70,042 23,165 31,366 26,634 29,074 45,340 16,537 4,370 17,672 11,323 40,238 Discounts & advances: Secured by U. S. Govt. securities: Jan. 23... 160,145 6,405 91,275 1,250 4,500 500 5,500 12,650 7,540 12,100 18,425 Jan. 30... 265,030 10.500 120,630 4,220 23.535 2,500 11,780 17,050 15,290 20,100 36,425 3,000 Feb. 6... 244,015 18.050 101,185 6,150 21.735 4,000 9,780 16,400 16,040 15,800 24,875 10,000 Feb.13... 366,015 19.850 181,135 11,090 49,885 3,600 5,480 37,800 3,000 14,800 27,375 12,000 Feb. 20... 312,610 19,255 145,310 16,865 26,985 5,800 3,300 51,400 10,000 17,500 15,175 1,020 Other: Jan. 23... 47,000 3,008 15,651 3,901 4,371 2,209 1,786 6,298 1,598 1,175 1,551 1,504 3,948 Jan. 30... 45,000 2,880 14,985 3,735 4,185 2,115 1,710 6,030 1,530 1,125 1,485 1,440 3,780 Feb. 6... 45,000 2,880 14,985 3,735 4,185 2,115 1,710 6,030 1,530 1,125 1,485 1,440 3,780 Feb.13... 45,000 2.880 14,985 3,735 4,185 2,115 1,710 6,030 1,530 1,125 1,485 1,440 3,780 Feb. 20... 40,000 2,560 13,320 3,320 3,720 1,880 1,520 5,360 1,360 1,000 1,320 1,280 3,360 Industrial loans: Jan. 23 1,843 106 1,695 42 Jan. 30 1,783 106 1,638 39 Feb. 6 1,762 106 1,617 39 Feb. 13 1,751 106 1,606 39 Feb. 20 1.754 101 1,614 39 U. S. Govt. securities: Bills: Under repurchase option: Jan. 23... 5,172,169 89,415 2,714,252 232,266 134,690 37,571 16,740 1,498,036 106,631 34,290 49,410 27,303 231,565 Jan. 30... 5,244,960 71.910 2.678.061 220,526 113,510 40,413 25,8281,488,064 125,031 57,395 62,365 34,792 327,065 Feb. 6... 5,214,383 57,535 2.698.384 224,901 107,670 38,963 19,9881,520,154 117,486 51,500 56,066 30,946 290,790 Feb.13... 5,283,470 91.583 2.687.194 242,476 115,420 35,383 18,6881,536,714 101,267 55,700 40,949 28,446 329,650 Feb. 20... 5,343,071 93,765 2,779,895 250,551 108,180 70,621 21,1881,454,044 113,879 38,590 32,102 15,421 364,835 Other bills: Jan. 23... 7,609,864 629.961 571,627 993,194 747,220 633,3911,051,593 449,747 296,992 537,414 429,6821,269,043 Jan. 30... 7,643,274 650,239 534 597,3911,045,264 750,011 635,6961,024,978 445,734 284,331 529,460 421,6001,258,036 Feb. 6... 7,721,064 666,982 47,825 609,2051,043,822 756,510 641,0621,038,025 435,813 272,882 517,175 426,8481,264,915 Feb.13... 7,776,914 645,169 57,380 614.9611,041,821 760,377 644,256 1,031,101 464,353 291,500 535,053 436,5051,254,438 Feb. 20... 7,754,464 662,288 51,999 614,5891,050,278 758,951 643,078 988,837 485,704 309,762 565,983 444,490 1,178,505 Certificates: Jan. 23 8,186,211 561,202 2,056,643 618,977 779,847 512,855 424,070 1,051,215 402,334 222,818 398,490 358,347 799,413 Jan. 30 8,056,711 551,935 2,025,462 '609,081 766,959 504,642 417,2851,034,688 396,105 219,165 392,177 352,758 786,454 Feb. 6 7,940,211 543,648 1,997,228 600,191 755,435 497,265 411,1911,019,809 390,487 215,896 386,501 347,720 774,840 Feb. 13 7,843,711 536,780 1,973,864 592,827 745,883 491,154 406,1421,007,484 385,832 213,188 381,796 343,549 765,212 Feb. 20 7,594,211 518,982 1,913,577 573,779 721,134 475,340 393,085 975,629 373,813 206,172 369,636 332,772 740.292 Notes: Jan. 23.... 1,426,200 97,773 358,309 107,838 135,866 89,350 73,881 183,143 70,093 38,818 69,425 62,430 139,274 Jan. 30.... 1,404,700 96,230 353,142 106,194 133,720 87,985 72,755 180,400 69,062 38,212 68,377 61,503 137,120 Feb. 6.... 1,404,700 96,177. 353,328 106,180 133,645 87,971 72,744 180,414 69,080 38,195 68,375 61,515 137,076 Feb. 13.... 1,401,700 95,924 352,736 105,941 133,292 87,770 72,580 180,041 68,950 38,098 68,229 61,393 136,746 Feb. 20.... 1,378,700 94,219 347,402 104,166 130,919 86,297 71,363 177,122 67,865 37,430 67,107 60,413 134,397 Bonds: Jan. 23.... 946,892 64,914 237,891 71,596 90,205 59,322 49,052 121,593 46,537 25,772 46,093 41,449 92,468 Jan. 30.... 946,892 64,868 238,049 71,584 90,139 59,309 49,043 121,606 46,554 25,758 46,092 41,459 92,431 Feb. 6.... 946,892 64,832 238.175 71,575 90,088 59,300 49,036 121,615 46,566 25,747 46,091 41,466 92,401 Feb. 13.... 946,892 64,800 238,284 71,566 90,043 59,291 49,030 121,624 46,578 25,736 46,091 41,473 92,376 Feb. 20.... 946,892 64,710 238,596 71,541 89,915 59,269 49,012 121,647 46,610 25,707 46,089 41,492 92,304 Total U. S. Govt securities: Jan. 23 23,341,336 1,443,265 5,367,095 1,602.304 2.133,802 ,446,318 1,197,134 3,9051,5801,075,342 618,690 1,100,832 919,2112,531,763 Jan. 30 23,296,537 1,435,182 5,295,248 1,604,776 2,149,592 ,442,3601,200,607 31,849,7361.082,486 624,8611,098,471 912,112 2,601,106 Feb. 6 23,227,250 1,429,174 5,334,940 1,612,052 2,130,660 ,440,0091,194,021 3,880,0171.059.432 604,2201,074,208 908,495 2.560,022 Feb. 13 23,252,687 1 434.256 5,309,458 1,627,771 2,126,459 ,433.9751,190,696 3,876,9641 066.980 624,2221,072,118 911,3662.578,422 Feb. 20 23,017,338 1,433,964 5,331,469 1,614,626 2,100,426 ,450,4781,177,726 3,717,2791,087,871 617,6611,080,917 894,5882,510,333 Total loans and securities: Jan. 23 23,550,324 ,452,784 5,474.0211,609,150 2,142,6731,449,0691,204,420 3,924,5281,084,480 631,9651,120,808 920,7152,535,711 Jan. 30 23,608,350 ,448,668 5,430,8631,614,369 2M77.312 1,447,0141,214,097 3,872,8161,099,306 646,0861,136,381 916,552 2,604,886 Feb. 6 23,518,027 ,450,210 5,451,1101,623,554 2,156,5801,446,1631,205,511 1,077.002 621,1451,100,568 909,9352,573,802 Feb. 13 23,665,453 ,457,092 5,505,5781,644,202 2,180,5291,439,7291,197,886 3,920,7941,071,510 640,1471,100,978 912,8062,594,202 Feb. 20 23,371,702 ,455,880 5,490,0991,636,4252,131,1311,458,1971,182,546 3 1,099,23i 636,1611,097,412 895,8682,514,713 296 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENT OF CONDITION OF THE FEDERAL RESERVE BANKS, BY WEEKS—Continued fin thousands of dollars] New- Phila- Cleve- Rich- St. Minne- Kansas San Total Boston York delphia land mond Atlanta Chicago Louis apolis City Dallas Francisco Due from foreign banks: Jan. 23 110 7 137 10 10 5 4 15 3 3 4 3 9 Jan. 30 110 137 10 10 5 4 15 3 3 4 3 9 Feb. 6 110 137 10 10 5 4. 15 3 3 4 3 9 Feb. 13 110 1 37 9 10 c 4 15 4 3 4 3 9 Feb. 20 110 137 9 10 4 15 4 3 4 3 9 Federal Reserve notes of other banks: Jan. 23 172,325 6,376 22,195 6,170 12,906 40,585 13,618 16,623 7,812 6,797 7,844 4,702 26,697 Jan. 30 159,729 5,882 14,997 4,096 13,455 42,462 13,779 13,923 7,387 7,180 7,230 4,463 24,875 Feb. 6 152,042 4,251 13,932 3,349 10,689 44,580 12,015 12,698 6,928 5,584 7,555 4,305 26,156 Feb. 13 137,670 4,499 13,846 3,930 8,215 43,889 12,157 9,975 6,796 4,445 5,151 3,419 21,348 Feb. 20 153,913 5,209 19,016 3,748 9,301 44,526 12,773 11,808 7,285 4,489 6,865 4,841 24,052 Uncollected items: Jan. 23 2,208,323 137,551 413,441 116,039 199,017 171,823 213,977 346,013 112,940 56,937 118,897 110,021 211,667 Jan. 30 2,016,971 136,640 415,394 121,984 193,438 150,230 142,408 313,019 90,966 51,702 101,262 84,407 215,521 Feb. 6 1,929,745 140,275 346,356 122,649 177,724 148,349 133,206 316,545 86,337 48,802 108,285 85,282 215,935 Feb. 13 1,953,432 150,576 346,792 126,379 174,268 150,041 144,602 300,461 94,247 46,928 104,098 80,365 234,675 Feb. 20.. 2,203,086 150,898 478,336 140,699 219,074 152,335 150,590 347,062 90,290 52,299 108,194 91,597 221,712 Jan. 23. 33,360 1,352 8,674 3,313 3,979 2,762 1,568 3,108 2,058 1,263 2,591 829 1,863 Jan. 30 33,329 1,348 8,674 3,301 3,979 2,762 1,565 3,107 2,056 1,261 2,591 829 1,856 Feb. 6... 33,305 1,348 8,656 3,301 3,979 2,762 1,565 3,111 2,054 1,261 2,585 826 1,857 Feb. 13 33,306 1,348 8,656 3,301 3,979 2,762 1,565 3,111 2,054 1,262 2,585 826 1,857 Feb. 20... 33,284 1,348 8,656 3,289 3,970 2,762 1,565 3,111 2,053 1,262 2,585 826 1,857 Other assets: Jan. 23 65,023 3,975 14,648 4,698 6,319 4,145 3,541 9,413 3,760 1,818 3,083 3,086 6,537 Jan. 30 66,538 4,101 15,664 4,613 6,724 4,196 3,672 8,777 3,832 1,788 3,201 3,148 6,822 Feb. 6.. 60,555 3,975 13,546 4,173 6,340 3,773 3,370 7,986 3,591 1,644 2,964 2,709 6,484 Feb. 13 62,806 4,216 14,214 4,305 6,589 4,011 3,478 8,173 3,670 1,643 3,077 2,800 6,630 Feb. 20 63,746 4,209 14,470 4,420 6,640 4,066 3,459 8,185 3,645 1,719 3,131 2,846 6,956 Total assets: Jan. 23 44,326,673 2,419,728 11,445,722 2,646,1293,584,7452,650,5892,466,6977,269,6311,829,2141,052,7601,880,7061,539,5175,541,235 Jan. 30 44,224,126 2,420,92411,442,0352,673,2893,575,8322,646,9582,412,9847,242,7611,819,5021,057,2231,871,4211,514,8955,546,302 Feb. 6 44,025,973 2,422,082 11,448,0152,670,2473,556,0412,654,8522,395,4437,200,7811,800,4581,029,9971,845,2301,512,4455,496,382 Feb. 13 44,182,758 2,448,162 11,455,492 2,680,8343,569,2632,637,6822,424,6487,194,0441,818,8151,045,0751,844,1731,499,4675,565,103 Feb. 20 44,217,543 2,459,752 11,556,9442,691,1133,584,2622,633,1662,420,8007,168,026 1,809,0741,046,1141,836,3181,490,7165,521,258 Liabilities Federal Reserve notes: Jan. 23 24,208,912 1,446,315 5,290,402 1,614,0712,059,995 1,700,6921,456,9684,393,861 1,047,850 546,494 902,149 607,1123,143,003 Jan. 30 24,147,899 1,443,392 5,281,6641,608,8482,054,4701,696,8081,453,4344,383,933 1,047,113 545,091 901,109 604,7443,127,293 Feb. 6 24,149,470 1,445,025 5,278,582 1,610,9072,053,351 1,696,0151,455,8304,392,404 1,048,884 546,714 901,833 604,702 3,115,223 Feb. 13 24,155,038 1,449 534 5 281 5261,614,7682,054,572 1,692,2621,453,0574,397,612 1,046,588 548,028 900 365 602,3483,114,378 Feb. 20 24,151,094 1,451,085 5,285,235 1,614,6562,048,2811,695,1741,450,5564,393,255 1,046,963 548,135 898,275 600,9783,118,501 Deposits: Member bank —reserve account: Jan. 23... 15,859,412 712,394 4,920,723 789,696 1,192,375 703,208 743,0962,280,018 595,013 385,721 775,908 755,7282,005,532 Jan. 30... 15,681,187 686,534 4,869,699 793,609 1,150,010 690,174 729,8532,284,430 589,110 386,289 771,845 730,761 1,998,873 Feb. 6... 15,716,698 696,088 4,867,704 790,252 1,171,360 715,765 739,0022,290,380 588,802 381,695 761,391 744,530 1,969,729 Feb.13... 15,693,102 686,423 4,850,463 779,724 1,148,216 708,951 757,4032,270,411 601,996 381,454 776,509 734,675 1,996,877 Feb. 20... 15,490,106 677,971 4,835,663 764,516 1,133,948 697,729 738,4652,207,001 591,522 379,287 758,800 728,595 1,976,609 U. S. Treasurer-general account: Jan.23... 577,706 27,706 103,099 28,696 46,894 32,842 28,019 125,128 39,944 34,044 44,472 32,033 34,829 Jan. 30... 762,397 57,254 118,806 44,844 68,563 53,330 38,431 131,951 41,664 45,461 50,340 57,748 54,005 Feb. 6... 716,227 48,908 216,242 48,722 53,302 42,057 24,529 95,114 29,440 29,238 36,034 44,150 48,491 Feb.13... 864,040 95,454 256,469 68,160 77,149 43,739 30,216 81,836 40,830 34,341 25,528 34,085 76,233 Feb. 20... 940,449 89,619 251,567 81,726 94,521 42,876 40,535 126,537 33,628 40,019 33,102 39,524 66,795 Foreign: Jan. 23 837,273 51,197 2 307,019 65,931 73,875 37,335 30,185 106,443 27,008 19,859 26,214 25,419 66,788 Jan. 30 872,265 53,622 2 318,360 68,860 77,156 38,993 31,526 111,171 28,208 20,741 27,378 26,548 69,702 Feb. 6 828,188 50,691 2 302,670 65,356 73,230 37,009 29,922 105,514 26,772 19,686 25,985 25,197 66,156 Feb. 13 749,834 45,714 2 276,441 58,866 65,958 33,334 26,951 95,037 24,114 17,731 23,405 22,695 59,588 Feb. 20 808,482 49,769 2 294,370 63,912 71,613 36,191 29,261 103,184 26,181 19,251 25,411 24,641 64,698 Other: Jan. 23 401,953 4,697 307,999 3,266 8,019 3,547 3,399 7,172 10,794 2,858 582 1,497 48,123 Jan. 30 425,407 3,675 328,150 4,563 8,688 3,412 3,742 8,555 11,125 3,433 1,394 1,028 47,642 Feb. 6 398,133 4,236 298,315 3,829 9,050 5,488 3,559 7,517 9,701 3,839 1,534 1,790 49,275 Feb. 13 423,312 3,887 331,981 3,178 8,965 3,048 2,647 5,893 9,444 3,901 1,765 1,005 47,598 Feb. 20 426,179 4,610 334,405 3,158 9,626 2,746 3,036 3,582 10,056 4,359 1,940 1,043 47,618 Total deposits: Jan. 23 17,676,344 795,994 5,638,840 887,589 1,321,163 776,932 804,699 2,518,761 672,759 442,482 847,176 814,677 2,155,272 Jan. 30 17,741,256 801,085 5,635,015 911,876 1,304,417 785,909 803,552 2,536,107 670,107 455,924 850,957 816,085 2,170,222 Feb. 6 17,659,246 799,923 5,684,931 908^159 800^319 797,0122,498,525 654,715 434,458 824,944 815,667 2,133,651 Feb. 13 .. 17,730,288 831,478 5,715 354 909 928 1 300288 789 072 817,217 2,453,177 676 384 437,427 827,207 792,4602 180,296 Feb. 20 17,665,216 821,969 5,716,'OO5 913,312 1,309,708 7 79,?5 42 811,2972,'440,'304 661,387 442,916 819,253 793,8032,155,720 Deferred availability items: Jan. 23 1,836,990 138,445 322,113 94,852 147,439 143,811 180,630 275,927 87,174 47,447 110,112 97,293 191,747 Jan. 30 1,727,921 137,257 330,546 102,683 160,479 134,942 131,337 241,091 80,702 40,147 97,962 73,494 197,281 Feb. 6..... 1,607,716 137 836 288,849 101,119 139,121 129,115 117,892 228,071 75,183 32,566 96,936 71,404 189,624 Feb. 13 1,685,762 127,711 262,955 105,862 157,489 126,732 129,494 261,100 74,050 43,268 94,967 83,877 218,257 Feb. 20 1,787,810 147,136 359,687 112,771 169,202 128,661 133,958 252,187 78,861 38,676 97,089 75,016 194,566 1 After deducting $73,000 participations of other Federal Reserve Banks. 2 After deducting $529,833,000 participations of other Federal Reserve Banks on Jan. 23; $553,365,000 on Jan. 30; $525,210,000 on Feb. 6; $473,- 057,000 on Feb. 13; and $513,608,000 on Feb. 20. 297 MARCH 1946 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENT OF CONDITION OF THE FEDERAL RESERVE BANKS, BY WEEKS—Continued lln thousands of dollars! San 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- m Ri o c n h d - Atlanta Chicago L S ou t. is M ap in o n li e s - K C an it s y as Dallas F c r is a c n o - Other liabilities including accrued div.: Jan. 23 9,841 425 2,548 439 841 472 391 2,169 296 675 337 342 906 Jan. 30 9,933 448 2,479 495 954 468 470 2,174 317 336 363 398 1,031 Feb. 6 10,283 492 2,937 540 929 452 380 2,145 356 470 381 299 902 Feb. 13 10,314 479 2,552 608 1,019 551 429 2,120 397 511 409 319 920 Feb. 20 10,133 517 2,490 549 972 531 431 2,065 380 496 402 365 935 Total liabilities: Jan. 23 43,732,087 2,381,179 11,253,9032,596,9513,529,438 2,621,9072,442,688 7,190,718 1,808,0791,037,0981,859,7741,519,4245,490,928 Jan. 30 43,627,009 2,382,182 11,249,7042,623,9023,520,3202,618,1272,388,7937,163,305 1,798,2391,041,4981,850,3911,494,7215,495,827 Feb. 6 43,426,715 2,383,276 11,255,2992,620,7253,500,3432,625,9012,371,1147,121,145 1,779,1381,014,2081,824,0941,492,0725,439,400 Feb. 13 43,581,402 2,409,202 11,262,3872,631,1663,513,3682,608,6172,400,197 7,114,009 1,797,4191,029,2341,822,9481,479,0045,513,851 Feb. 20 43,614,253 2,420,707 11,363,4172,641,2883,528,1632,603,9082,396,242 7,087,811 1,787,5911,030,2231,815,0191,470,1625,469,722 Capital Acc'ts: Capital paid in: Jan. 23 179,146 10,703 63,848 13,280 18,002 7,321 6,520 21,384 5,704 3,914 5,897 6,126 16,447 Jan. 30 179,508 10,701 63,935 13,350 18,023 7,350 6,605 21,396 5,712 3,920 5,900 6,130 16,486 Feb. 6 179,785 10,707 63,967 13,375 18 046 7,351 6,624 21,430 5,717 3,930 5,901 6,232 16,505 Feb. 13 179,965 10,720 63,976 13,399 18,075 7,367 6,654 21,450 5,724 3,932 5,911 6,246 16,511 Feb. 20 180,142 10,731 63,985 13,422 18,090 7,408 6,664 21,468 5,745 3,935 5,923 6,256 16,515 Surplus (section 7): Jan. 23 358,355 22,439 116,860 28,946 33,745 15,593 14,450 53,029 12,939 8,869 11,891 10,670 28,924 Jan. 30 358,355 22,439 116,860 28,946 33,745 15,593 14,450 53,029 12,939 8,869 11,891 10,670 28,924 Feb. 6 358,355 22,439 116,860 28,946 33,745 15,593 14,450 53,029 12,939 8,869 11,891 10,670 28,924 Feb. 13 358,355 22,439 116,860 28,946 33,745 15,593 14,450 53,029 12,939 8,869 11,891 10,670 28,924 Feb. 20 358,355 22,439 116,860 28,946 33,745 15,593 14,450 53,029 12,939 8,869 11,891 10,670 28,924 Surplus (section 13b): Jan. 23 27,428 3,012 7,205 4,501 1,007 3,326 762 1,429 527 1,073 1,137 1,307 2,142 Jan. 30 27,428 3,012 7,205 4,501 1,007 3,326 762 1,429 527 1,073 1,137 1,307 2,142 Feb. 6 27,428 3,012 7,205 4,501 1,007 3,326 762 1,429 527 1,073 1,137 1,307 2,142 Feb. 13 27,428 3,012 7,205 4,501 1,007 3,326 762 1,429 527 1,073 1,137 1,307 2,142 Feb. 20 27,428 3,012 7,205 4,501 1,007 3,326 762 1,429 527 1,073 1,137 1,307 2,142 Other capital accounts: Jan. 23 29,657 2,395 3,906 2,451 2,553 2,442 2,277 3,071 1,965 1,806 2,007 1,990 2,794 Jan. 30 31,826 2,590 4,331 2,590 2,737 2,562 2,374 3,602 2,085 1,863 2,102 2,067 2,923 •Feb. 6 33,690 2,648 4,684 2,700 2,900 2,681 2,493 3,748 2,137 1,917 2,207 2,164 3,411 Feb. 13 35,608 2,789 5,064 2,822 3,068 2,779 2,585 4,127 2,206 1,967 2,286 2,240 3,675 Feb. 20..... 37,365 2,863 5,477 2,956 3,257 2,931 2,682 4,289 2,272 2,014 2,348 2,321 3,955 Total 1IQ1"\I1I ti AO A VJLdl lldUlllLlcb aancdc ountcsa:pital Jan. 23 44,326,673 2,419,728 11,445,7222,646,1293,584,745 2,650,5892,466,697 7,269,631 1,829,2141,052,7601,880,7061,539,5175,541,235 Jan. 30 44,224,126 2,420,92411,442,0352,673,2893,575,832 2,646,9582,412,9847,242,7611,819,5021,057,2231,871,4211,514,8955,546,302 Feb. 6 44,025,973 2,422,082 11,448,0152,670,2473,556,0412,654,8522,395,4437,200,781 1,800,4581,029,9971,845,2301,512,4455,490,382 Feb. 13 44,182,758 2,448,162 11,455,4922,680,8343,569,2632,637,6822,424,6487,194,044 1,818,8151,045,0751,844,1731,499,4675,565,103 Feb. 20 44,217,543 2,459,752 11,556,9442,691,1133,584,262 2,633,1662,420,8007,168,026 1,809,0741,046,1141,836,3181,490,7165,521,258 Commitments to make industrial loans: Jan. 23 1,587 164 648 300 200 185 90 Jan. 30 1,605 164 673 300 200 178 90 Feb. 6 1,606 164 674 300 200 178 90 Feb. 13 1,581 164 660 300 200 178 79 Feb. 20 1,559 164 638 300 200 178 79 FEDERAL RESERVE NOTES—FEDERAL RESERVE AGENTS' ACCOUNTS, BY WEEKS [In thousands of dollars! San 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 - la A n t t - a Chicago L S ou t. is M ap i o n l n is e- K C a i n t s y as Dallas c F i r s a co n- Federal Reserve notes outstanding (issued to bank): Jan. 23 25,374,577 1,523,0955,525,1341,683,1372,155,365 ,782,2931,546,008 4,544,3681,106,860 564,453 942,845 646,7213,354,298 Jan. 30 25,281,326 1,520,5655,510,0071,682,420 2,.144,267 779,334 1,538,944 4,523,6751,106,305562,152 935,655 648,1183,329,884 Feb. 6 25,247,166 1,517,936 5,513,5441,678,840 2,.137,814 ,778,2471,537,889 4,517,7471,106,887559,594 936,294 645,4113,316,963 Feb. 13 25,200,094 1,513,632 5,511,8041,680,600 2:., 135,493,777 9071,518,552 4,508,2931,106,734 560,917 937,238 644,2183,304,706 Feb. 20 25,203,486 1,509,848 5,509,4681,692,0552,133,101 ,777,4191,516,244 4,502,4471,104,486 560,893 936,563 643,888 3,317,074 Collateral held against notes outstanding: Gold certificates: Jan. 23 10,628,000 460,000 3,520,000 500,000 635,000 600,000 680,0001,660.000 300,000175,000 280,000169,0001,649,000 Jan. 30 10,618,000 460,000 3,520,000 500,000 635,000 600,000 680,0001,660,000 300,000165,000 280.000169,0001,649,000 Feb. 6 10,693,000 460,000 3,520,000 500,000 635,000 600,000 655,0001,760,000 300,000 165,000 280,000169,0001,649,000 Feb. 13 10,693,000 460,000 3,520,000 500,000 635,000 600,000 655,0001,760,000 300,000 165,000 280,000169,0001,649,000 Feb. 30 10,854,000 460,000 3,520,000 500,000 635,000 600,000 655,0001,720,000 300,000165,000 280,000169,0001,850,000 Eligible paper: Jan. 23 137,495 6,405 91,275 1,250 500 7,540 12,100 18,425 Jan. 30 209,665 10,500 120,630 4,220 2,500 15,290 20,100 36,425 Feb. 6 196,100 18,050 101,185 6,150 4,000 16,040 15,800 24,875 10,000 Feb. 13 272,850 19,850 181,135 11,090 3,600 3,000 14,800 27,375 12,000 Feb. 20 . 230,925 19,255 145,310 16,865 5,800 10,000 17,500 15,175 1,020 U. S. Govt. securities: Jan. 23 15,306,631 100,000 2,000,0001,200,0001,550,0001,225,000 900,0002,900,000 931,631400,000 700,000 500,000 1,900,000 Jan. 30 15,325,031 1,100,000 2,000,0001,200,0001,550,0001,225,000 900,0002,900,000 950,031400,000 700,000 500,000 1,900,000 Feb. 6 15,217,486 1,100,000 2,000,0001,200,0001,550,0001,225,000 900,000 2,800,000 942,486 400,000 700,000 500,000 1,900,000 Feb. 13 15,201,267 1,100,000 2,000,0001,200,0001,550,0001,225,000 900,0002,800,000 926,267400,000 700,000 500,000 1,900,000 Feb. 20 15,213,879 1,100,000 2,000,0001,200,0001,550,0001,225,000 900,000 2,800,000 938,879400,000 700,000 500,000 1,900,000 Total collateral: Jan. 23 26,072,126 1,566,4055,611,275 1,701,250 2,185,0001,825,5001,580,000 4,560,000 ,239,171587,100 998,425 669,000 3,549,000 Jan. 30 26,152,696 1,570,500 5,640,630 1,704,220 2,185,0001,827,5001,580,0004,560,000 ,265,321585,100 016,425 669,000 3,549,000 Feb. 6 26,106,586 1,578,050 5,6211,1851,706,150 2,185,0001,829,0001,555,0004,560,000 258,526 580,8001,004,875 669,0003,559,000 Feb. 13 26,167,11 1 579.850 5>,701,1351,711,090 2,185,0001,828,6001,555,0004,560,000 ,229,267579,8001,,007,375 669,000 3,561,000 Feb. 20 26,298,804 1,579,255 5,665,310 ,716,865 2,185,0001,830,8001,555,000 4,520,000 248,879 582,500 995,175 669,000 3,751,020 298 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

WAR PRODUCTION LOANS GUARANTEED BY WAR DE- MEMBER BANK RESERVES AND BORROWINGS PARTMENT, NAVY DEPARTMENT, AND MARITIME [Averages of daily figures. In millions of dollars] COMMISSION THROUGH FEDERAL RESERVE BANKS UNDER REGULATION V Central reserve [Amounts in thousands of dollarsl All city banks Re- Coun- Gua a r u a t t o n h t o e d r e a i d z te e l d oans o G u u t a s lo t r a a a n n n d t s e i e n d g a A b v a o d a m r d il r i a o o t b i w u o l n e e n t r a t s o l week M en o d n i t n h g , o F r riday b m a b n e e m k r s - 1 Y N o e r w k c Ch a i g - o b s c a e i n r t v y k e s b tr a y nks* Date under guar- N b u e m r - a T m o o t u a n l t g P u o te a r e r ti a d o n n - a o n u te t m s e t e a n a n t g d s r i e n e g - To 1 1 t 9 9 a 4 4 l 4 5 r — — es D J e a r e n v c es held: 1 1 4 4 , , 1 0 6 4 8 8 3 3, , 7 7 1 5 1 6 8 8 7 6 6 4 5 5 , ,6 6 2 5 5 4 3 3 , , 8 8 8 4 2 8 June 1 3 9 0 4 . 2 . . 565 310,680 81,108 69,674 137,888 1946— D Ja e n c 1 1 5 6 , , 9 0 2 2 1 7 4 4 , , 1 0 1 5 8 4 9 92 3 1 9 6 6, , 3 3 5 9 7 4 4 4 , , 5 5 7 9 6 0 S D e e p c t . . 3 31 0 . . . . . . 2 1 , ,6 6 5 6 8 5 2,6 9 8 4 8 4 , . 3 2 9 0 7 4 8 4 0 2 3 7 , , 7 9 2 1 0 8 3 6 5 3 6 2 , , 6 4 7 7 7 4 1,4 2 3 3 0 0 , , 1 72 2 0 1 1 1 9 94 4 5 6 — — D Ja e n c . . 4 28 1 1 5 5, , 8 9 2 1 8 4 4 4 , ,0 0 6 3 5 7 9 9 1 1 9 9 6 6 , , 3 3 4 0 9 7 4 4 , , 6 53 0 7 8 1943 Jan. 11 15,954 4,054 923 6,368 4,610 J S M D u e e n a p c r e t . . . 3 3 3 3 1 0 1 0 . . . . . . . . . . . . 3 4 4 5 , , , , 2 7 5 3 1 8 4 3 7 7 7 4 3 5 6 4 , , , , 7 5 4 7 2 6 1 5 5 3 8 2 , , , , 0 2 8 4 4 4 1 9 8 1 8 81 1 1 1 , , , , 7 9 4 2 0 1 2 4 8 4 8 5 , , , , 0 0 2 7 2 4 5 1 2 0 3 1 1 1 1 , , , 1 4 6 9 5 0 1 9 1 3 3 9 , , , , 5 7 1 3 1 5 5 9 8 6 9 4 3 2 2 1 , , , , 1 4 2 8 4 9 1 6 6 4 6 5 , , , , 2 8 0 6 8 5 5 1 6 5 3 8 J J F F F a a e e e n n b b b . . . . . 2 1 8 1 1 5 8 5 1 1 1 1 1 5 5 5 6 5 , , , , , 6 7 7 9 1 9 8 6 0 1 6 2 7 8 0 4 4 4 4 4 , , , , , 0 0 0 0 0 7 6 2 7 7 1 5 7 8 4 9 9 9 9 9 1 0 3 2 0 1 5 3 2 1 6 6 6 6 6 , , , , , 3 4 2 2 2 4 9 4 5 6 3 5 2 0 4 4 4 4 4 4 , , , , , 5 6 5 5 5 0 5 7 3 1 2 5 3 3 8 1944 Excess reserves: Mar. 31 5,904 7,466,762 2,009,511 1,680,046 3,615,963 1944—Dec .284 28 2 359 895 June 30 6,433 8,046,6722,064,318 1,735,777 3,810,797 1945—Jan ,114 11 3 297 804 Sept. 30 6,882 8,685,7531,960,7851,663,489 4,301,322 Dec ,491 48 14 418 -•1,011 Dec. 30 7,434 9,310,582 1,735,9701,482,038 4,453,586 1946—Jan ,311 7 337 958 1945 1945—Dec. 28 ,356 26 346 ••975 Mar. 31 7,886 9,645,378 1,599,1201,365,959 3,963,961 1946—Jan. 4 ,466 25 407 1,020 June 30 8,422 10,149,315 1,386,8511,190,944 3,694,618 Jan. 11 ,398 18 369 1,000 S D e e p c t . . 3 3 0 1 8 8 , , 6 7 9 5 5 7 1 1 0 0 , , 3 3 1 3 3 9 , , 8 40 6 0 8 1,0 5 7 1 3 0 , , 8 2 9 7 2 0 • 9 4 1 3 6 5 , , 8 3 5 4 1 5 3, ' 0 9 4 6 3 6 , ,5 6 9 7 5 4 J J F a a e n n b . . . 2 1 1 5 8 Pl, , , 1 4 2 9 3 2 3 3 4 2 1 1 2 4 7 3 2 2 8 7 8 5 1 7 1 P ,0 9 8 1 1 9 7 7 9 1946 Feb. 8 *>1,196 18 276 P896 Jan. 31 8,761 10,340,275 427,278 363,048 764,093 Borrowin F g e s b . a t 1 5 Federal PI,182 12 278 Reserve Banks: r Revised. 1944—Dec 265 186 43 36 NOTE.—The difference between guaranteed loans authorized and sum 1945—Jan 118 39 51 28 of loans outstanding and amounts available to borrowers under guaran- Dec 334 192 96 46 tee agreements outstanding represents amounts repaid, guarantees 1946—Jan 185 94 66 25 available but not completed, and authorizations expired or withdrawn. 1945—Dec. 28 482 307 74 101 Jan. 4 291 191 43 57 Jan. 11 234 102 57 75 Jan. 18 231 103 53 75 Jan. 25 219 76 67 75 Feb. 1 273 89 114 69 Feb. 8 317 111 123 82 INDUSTRIAL LOANS BY FEDERAL RESERVE BANKS Feb. 15 378 140 144 92 [Amounts in thousands of dollars] p Preliminary ' Revised. Applications Ap- i Weekly figures of excess reserves of all member banks and of W o D o r f e a d l t p a e n s e e t r ( s i d l o d a a d a s y y ) t N b u e m r a t p - o p r d o A a v t m e e d ount ( b a p p m u c r le o o t o t m v n e u e d o - n d 1 t t ) s (a t L a m o n o u o d a t u i n - n n s g t) 2 ( C s a t m m o a o m n e o u d n d u t m - ii t n n s i n t t g ) - ( s a P p t m a a a o t n r u o i t d o i t u - c i n n n i s t - g ) c b R o e e r u s n e b r t a v r n y e k b s B a a a n n n k k d s a d o r i f e s c c e o o s u u ti n n m t t s r a y a t e n b s d a . n a k d W s v a e m e n k a c l y e y s i f n f i c o g l u r u r d n e e o s n o s m m f e b a m l o l r b r a o e m r w o b in u a g n n s t k s o s o , f e f a t l F c l e . m de e r m al - 1934 984 49,634 20,966 13,589 8,225 1,296 DEPOSITS OF COUNTRY MEMBER BANKS IN LARGE AND 1935 1,993 124,493 11,548 32,493 27,649 8,778 SMALL CENTERS * 1936 2,280 139,829 8.226 25,526 20,959 7,208 [Averages of daily figures. In millions of dollars] 1937 2,406 150,987 3,369 20,216 12,780 7,238 1938 2,653 175,013 1,946 17,345 14,161 12,722 In places of 15,000 In places of under 1939 2,781 188,222 2,659 13,683 9.220 10,981 and over population 15,000 population 1940 2.908 212,510 13,954 9,152 5,226 6,386 1941 3,202 279,860 8.294 10,337 14,597 19,600 Demand Demand J D u e n c e . 1 9 3 2 4 1 4 2 . . 3 3 , , 4 3 2 5 3 2 3 4 3 0 8 8 , . 8 7 2 3 2 7 2 4 6 , , 2 3 4 4 8 6 1 1 1 4 , , 2 1 6 2 5 6 1 10 6 , , 6 8 6 3 1 2 2 1 6 7, , 3 4 0 3 5 0. d e e i x n p c t o e e s r p i - t t s de T p i o m s e its d e e i x n p c t o e e s r p i - t t s de T p i o m s e its bank2 bank2 1943 June 30. 3,452 475,468 3,203 13,044 12,132 19,070 January 1945 14,961 5,926 9,485 4,110 Dec. 31. 3,471 491,342 926 10,532 9,270 17,930 December 1945 '17,187 7,275 '11,835 5,106 January 1946 17,523 7,415 12,103 5.200 1944 June 30. 3,483 510,857 45 11,366 4,048 11,063 Boston 2,257 804 371 210 Dec. 30. 3,489 525,532 1,295 3,894 4,165 2,706 New York 3.428 1,866 1,159 1,021 Philadelphia. . . . 1,264 651 970 762 1945 Cleveland 1,554 831 1,098 714 Mar. 31. 3,493 528,936 85 4,214 3,321 2,365 June 30. 3,502 537,331 70 3,252 5,224 2,501 Richmond 1,214 349 892 397 Sept. 30. 3,505 540,241 130 3,166 4,291 2,018 Atlanta 1,696 436 716 178 Dec. 31. 3,511 544,961 320 1,995 1,644 1,086 Chicago 2,164 1,198 1,606 810 St. Louis 634 294 1,010 236 1946 Jan.31. . 3,512 545,372 195 1,843 1,579 1,046 Minneapolis 583 252 702 369 Kansas City 532 100 1,514 179 1 Includes applications approved conditionally by the Federal Re- Dallas 936 110 1,438 56 serve Banks and under consideration by applicant. San Francisco. . . 1,260 525 628 269 2 Includes industrial loans past due 3 months or more, which are not included in industrial loans outstanding in weekly statement of con- r Revised. dition of Federal Reserve Banks. 1 Includes any banks in outlying sections of reserve cities which have NOTE.—The difference between amount of applications approved and been given permission to carry the same reserves as country banks. the sum of the following four columns represents repayments of ad- All reserve cities have a population of more than 15,000. vances, and applications for loans and commitments withdrawn or 2 Includes war loan deposits, shown separately for all country banks expired. in the table on the following page. 299 MARCH 1946 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DEPOSITS, RESERVES, AND BORROWINGS OF MEMBER BANKS [Averages of daily figures.1 In millions of dollars] Gross demand deposits De- Reserves with Federal Bor- De- mand Reserve Banks row- Feder C al l a R ss e a s o n e f d r v b e a n d k istrict Total I b n a t n e k r- w G a U m o r d v . e e e - l n S o r t . n a - n Other p m a o d a d e s n - i - t d s p m o N d d a s e e e i n - - t t s d * p T o d i s m e i - t e s5 - m a f b n r d d e o a o c u s l m - - e t e i s c Total qu R i e r - ed c E e x s - s s i F e e n R a e r r g t e d v a s - l - e t posits* banks Banks First half of January 1946 All member banks 104,781 13,888 21,793 69,100 64,453 71,538 24,391 7,058 15,965 14,547 1,418 184 Central reserve city banks New York 28,205 4,657 6,905 16,644 15,169 19,795 1,272 67 4,036 4,035 1 108 Chicago... 6,321 1,321 1,538 3,461 3,198 4,338 722 187 926 911 15 Reserve city banks 39,321 6,605 8,079 24,639 22,438 27,006 9,826 2,127 6,381 5,989 391 54 Boston 2,455 312 653 1,490 1,385 1,653 173 46 346 341 5 5 New York 647 33 137 477 449 456 279 26 113 108 5 1 Philadelphia 2,882 382 670 1,829 1,693 1,999 193 77 423 411 12 5 Cleveland 4,528 601 1,053 2,874 2,662 3,087 1,156 181 727 687 41 Richmond 2,487 420 512 1,555 1,425 1,717 415 139 410 368 41 Atlanta 2,502 714 483 1,305 1,154 1,704 367 170 404 363 41 4 Chicago 4,669 553 1,023 3,093 2,880 3,103 1,780 337 783 727 56 8 St. Louis 2,330 696 476 1,159 1,018 1,607 290 112 349 338 10 4 Minneapolis 1,278 360 325 594 516 800 151 77 173 169 4 5 Kansas City 3,204 1,066 518 1,620 1,416 2,166 319 323 494 > 452 42 14 Dallas 2,683 674 502 1,507 1,376 1,753 283 304 428 368 61 San Francisco 9,656 794 1,727 7,136 6,464 6,961 4,420 335 1,731 1,657 73 Country banks 30,933 1,304 5,271 24,358 23,650 20,399 12,572 4,676 4,622 3,610 1,012 23 Boston 2,729 93 629 2,007 1,918 1,801 1,009 220 370 313 58 3 New York 4,664 92 1,152 3,420 3,287 3,039 2,878 355 731 598 133 14 Philadelphia 2.259 14 446 1,799 1,752 1,517 1,405 254 379 297 82 1 Cleveland 2,680 29 533 2,118 2,066 1,745 1,538 357 456 337 120 Richmond 2,288 182 376 1,729 1,658 1,459 741 396 321 249 72 2 Atlanta 2,665 271 386 2,008 1,939 1,722 612 503 360 278 82 1 Chicago 3,857 85 665 3,107 3,047 2,522 2,001 621 620 473 147 1 St. Louis 1,801 156 215 1,430 1,390 1,243 528 310 259 206 54 Minneapolis 1,384 92 210 1,082 1,052 902 620 246 216 164 52 Kansas City 2,149 98 190 1,861 1,835 1,444 278 500 291 219 72 Dallas 2,539 160 230 2,149 2,103 1,667 167 612 335 243 91 San Francisco 1,918 31 239 1,648 1,603 1,339 794 303 285 235 50 Second half of January 1946 All member banks 104,397 13,409 21,522 69,466 65,201 72,186 24,542 6,679 15,880 14,670 1,210 187 Central reserve city banks New York 28,010 4,553 6,769 16,689 15,383 19,902 1,281 70 4,071 4,057 13 80 Chicago 6,286 1,275 1,508 3,502 3,254 4,353 728 181 916 914 2 1 Reserve city banks 39,254 6,356 8,013 24,884 22,837 27,272 9,877 2,014 6,335 6,047 288 78 Boston 2,462 300 650 1,512 1,418 1,673 175 46 353 345 7 1 New York 642 29 136 478 452 459 281 22 112 109 3 1 Philadelphia 2,870 375 670 1,825 1,703 1,998 194 80 423 411 12 3 Cleveland 4,539 590 1,043 2,906 2,704 3,122 1,161 177 735 694 41 14 A C R h t ic l i a c h n a m g ta o o nd 4 2 2 , , , 6 4 4 7 7 9 6 6 4 6 5 4 3 7 1 5 8 2 1,0 4 5 2 7 0 0 3 7 3 1 1 , , , 3 1 5 2 7 2 5 5 1 2 1 1 , , , 1 4 9 7 5 1 5 2 8 3 1 1 , , , 1 7 6 4 3 9 6 8 8 1,7 3 4 9 7 1 3 0 8 3 1 1 1 6 3 4 1 8 3 4 7 8 0 7 8 3 8 3 3 7 6 7 3 2 3 7 3 4 2 0 2 6 1 "9 3 " St. Louis 2,322 675 468 1,179 1,043 1,619 291 103 348 341 6 8 Minneapolis 1,251 347 321 583 517 795 152 71 171 168 3 11 Kansas City 3,167 1,016 511 1,639 1,452 2,179 320 297 484 455 29 17 Dallas 2,680 654 497 1,529 1,400 1,767 290 294 413 371 42 1 San Francisco 9,675 747 1,716 7,213 6, 6jO4 7,077 4,432 311 1,727 1,681 46 Country banks 30,847 1,225 5,232 24,391 23,727 20,659 12,655 4,414 4,559 3,652 908 28 Boston 2,707 87 628 1,993 1,911 1,801 1,017 206 352 313 39 6 New York 4,687' 87 1,138 3,462 3,334 3,101 2,896 335 723 608 115 15 Philadelphia 2,237 14 442 1,782 1,739 1,515 1,419 243 372 297 75 2 Cleveland 2,684 31 529 2,125 2,077 1,762 1,551 351 451 340 111 Richmond 2,263 156 373 1,734 1,665 1,477 749 359 311 252 60 Atlanta 2,688 258 382 2,048 1,983 1,784 616 471 359 287 72 Chicago 3,847 80 663 3,104 3,050 2,545 2,013 597 611 477 134 St. Louis 1,789 146 215 1,429 1,395 1,251 532 297 254 207 47 Minneapolis 1,362 84 207 1,071 1,043 909 622 223 216 165 51 Kansas City 2,135 94 191 1,851 1,827 • 1,462 280 468 286 222 65 Dallas 2,529 159 228 2,141 2,094 1,685 164 583 339 246 93 San Francisco 1,919 30 237 1,652 1,610 1,367 795 281 286 239 47 1 Averages of daily closing figures for reserves and borrowings and of daily opening figures for other columns, inasmuch as reserves required are based on deposits at opening of business. 2 Figures include Series E bond deposit accounts, but do not include certain other demand deposits of the U. S. Government with member banks and, therefore, differ from figures for U. S. Government deposits shown in other published banking data. See also footnote 3. 1 Preceding column minus (a) so-called "float" (total cash items in process of collection) and (b) U. S. Government demand deposits (other than war loan and Series E bond accounts) on the latest available call report date. 4 Demand deposits subject to reserve requirements, i. e., demand deposits other than war loan deposits, minus cash items in process of collection and demand balances due from domestic banks. 5 Includes some interbank and U. S. Government time deposits; the amounts on call report dates are shown in the Member Bank Call Report, 300 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

UNITED STATES MONEY IN CIRCULATION, BY DENOMINATIONS [Outside Treasury and Federal Reserve Banks. In millions of dollars] Total Coin and small denomination currency2 Large denomination currency2 End of year and in cir- Unasmonth cula- sorted tion1 Total Coin 3$1 $2 $5 $10 $20 Total $50 $100 $500 $1,000$5,000$10,000 1933. 5,519 4,167 442 402 33 719 1,229 1,342 1,360 364 618 125 237 8 10 8 1934. 5,536 4,292 452 423 32 771 1,288 1,326 1,254 337 577 112 216 5 7 10 1935. 5,882 4,518 478 460 33 815 1,373 1,359 1,369 358 627 122 239 7 16 5 1936. 6,543 5,021 517 499 35 906 1,563 1,501 1,530 399 707 135 265 7 18 8 1937, 6,550 5,015 537 505 33 905 1,56$ 1,475 1,542 387 710 139 288 6 12 7 1938. 6,856 5,147 550 524 34 946 1,611 1,481 1,714 409 770 160 327 17 32 5 1939. 7,598 5,553 590 559 36 1,010 1,772 1,576 2,048 460 919 191 425 20 32 2 1940. 8,732 6,247 648 610 39 1,129 2,021 1,800 2,489 538 1,112 227 523 30 60 4 1941. 11,160 8,120 751 695 44 1,355 2,731 2,545 3,044 724 1,433 261 556 24 46 4 1942. 15,410 11,576 880 801 55 1,693 4,051 4,096 3,837 1,019 1,910 287 586 9 25 3 1944--February.. . . 20,824 15,004 1,018 877 70 1,952 5,255 5,832 5,823 1,534 3,054 426 777 9 22 3 March 21,115 15,100 1,029 881 70 1,951 5,265 5,905 6,017 1,576 3,152 444 814 9 22 1 April 21,552 15,342 1,039 885 70 1,964 5,344 6,040 6,212 1,618 3,270 456 836 9 23 1 May 22,160 15,731 1,055 903 72 2,003 5,498 6,198 6,431 1,668 3,371 473 887 9 23 2 June 22,504 15,925 1,065 906 72 2,010 5,544 6,326 6,581 1,699 3,458 481 912 9 22 2 July 22,699 16,034 1,077 910 73 2,016 5,569 6,388 6,667 1,722 3,516 487 911 9 22 2 August 23,292 16,410 1,092 921 75 2,053 5,706 6,562 6,884 1,780 3,642 502 929 9 22 2 September... 23,794 16,715 1,105 937 75 2,078 5,789 6,731 7,081 1,829 3,765 516 939 9 22 2 October 24,425 17,089 1,125 948 76 2,103 5,877 6,960 7,339 1,893 3,918 532 963 10 23 2 November... 25,019 17,461 1,144 962 78 2,129 5,990 7,157 7,561 1,946 4,056 546 981 10 23 3 December. . . 25,307 17,580 1,156 987 81 2,150 5,983 7,224 7,730 1,996 4,153 555 990 10 24 3 1945—January 25,290 17,456 1,150 950 77 2,102 5,936 7,, 242 7,837 2,022 4,228 566 990 10 21 3 February.... 25,751 17,778 1,158 953 75 2,135 6,076 7,381 7,974 2,059 4,317 571 994 10 24 1 March 25,899 18,000 1,170 954 73 2,132 6,132 7,539 7,900 2,088 4,266 550 965 9 23 1 April 26,189 18,353 1,180 957 73 2,151 6,238 7,754 7,837 2,126 4,210 527 932 9 33 1 May 26,528 18,715 1,196 972 73 2,186 6,377 7,911 7,814 2,159 4,192 513 909 8 33 1 June 26,746 19,183 1,205 981 73 2,215 6,515 8,193 7,565 2,132 4,044 483 868 8 31 2 July 27,108 19,599 1,223 995 73 2,250 6,659 8,400 7,511 2,139 4,013 472 847 8 32 2 August 27,685 20,141 1,236 1,003 73 2,301 6,826 8,700 7,546 2,180 4,038 466 832 8 22 2 September... 27,826 20,235 1,243 1,001 72 2,288 6,815 8,816 7,592 2,204 4,071 464 825 8 21 2 October 28,049 20,381 1,252 1,000 71 2,274 6,779 9,004 7,671 2,243 4,123 461 816 7 21 2 November.. . 28,211 20,500 1,263 1,009 71 2,279 6,783 9,095 7,713 2,264 4,154 457 811 7 20 2 December. . . 28,515 20,683 1,274 1,039 73 2,313 6,782 9,201 7,834 2,327 4,220 454 801 7 24 2 27,917 20,126 1,261 985 69 2,217 6,568 9,027 7,794 2,316 4,224 445 779 7 22 1 Total of amounts of coin and paper currency shown by denominations less unassorted currency in Treasury and Federal Reserve Banks. 2 Includes unassorted currency held in Treasury and Federal Reserve Banks and currency of unknown denominations reported by the Treasury as destroyed. 3 Paper currency only; $1 silver coins reported under coin. Back figures.—See Banking and Monetary Statistics, Table 112, pp. 415-416. UNITED STATES MONEY, OUTSTANDING AND IN CIRCULATION, BY KINDS [On basis of circulation statement of United States money. In millions of dollars] Money held in the Treasury Money in circulation1 Money T s J o t a a t 1 n n a 9 . l d 4 3 i o 6 n 1 u g , t , - A g s a o s g l s i d a l e v i c n e a u s r n r t d ity Tr c e a a s s h ury R F B e e F a d s o n e e r r k r v a s e l B h R F a a e n e e g l d k s d e e s e n r r b t v a a s y n e l d Ja 1 n 9 . 4 3 6 1, Dec 1 , 9 4 3 5 1, Ja 1 n 9 . 4 3 5 1, certificates and agents Gold 20,156 18,034 22,122 Gold certificates 18,034 15,168 2,815 51 51 53 Federal Reserves notes.. . 25,273 123 1,283 23,867 24,388 21,533 Treasury currency—total. 4,406 32,108 49 359 3,999 4,075 3,704 Standard silver dollars 494 336 136 136 117 Silver bullion 1,772 1,772 Silver certificates and Treasury notes of 1890. ,108 1,828 1,873 1,562 Subsidiary silver coin 862 13 819 832 751 Minor coin 318 7 306 307 282 United States notes 347 5 307 316 316 Federal Reserve Bank notes 496 3 487 494 554 National bank notes 118 1 117 117 123 Total—January 31, 1946... 20,142 2,293 15;168 27,917 December 31, 1945. 19,967 2,287 15,047 28,515 January 31, 1945... 20,217 2,371 15,558 25,290 1 Outside Treasury and Federal Reserve Banks. Includes any paper currency held outside the continental limits of the United States; totals for other end-of-month dates shown in table above, totals by weeks in table on p. 293, and seasonally adjusted figures in table on p. 302. 2 Includes $1,800,000,000 Exchange Stabilization Fund and $156,039,431 held as reserve against United States notes and Treasury notes of 1890; the balance resulting from reduction in weight of the gold dollar, also included, is not shown in the circulation statement beginning July 31. 3 To avoid duplication, amount of silver dollars and bullion held as security against silver certificates and Treasury notes of 1890 outstanding is not included in total Treasury currency outstanding. 4 Because some of the types of money shown are held as collateral or reserves against other types, a grand total of all types has no special significance and is not shown. See note for explanation of these duplications. NOTE.—There are maintained in the Treasury—(i) as a reserve for United States notes and Treasury notes of 1890—$156,039,431 in gold bullion; (ii) as security for Treasury notes of 1890—an equal dollar amount in standard silver dollars (these notes are being canceled and retired on receipt); (iii) as security for outstanding silver certificates—silver in bullion and standard silver dollars of a monetary value equal to the face amount of such silver certificates; and (iv) as security for gold certificates—gold buHion of a value at the legal standard equal to the face amount of such gold certificates. Federal Reserve notes are obligations of the United States and a first lien on all the assets of the issuing Federal Reserve Bank. Federal Reserve notes are secured by the deposit with Federal Reserve agents of a like amount of gold certificates or of gold certificates and such discounted or purchased paper as is eligible under the terms of the Federal Reserve Act, or of direct obligations of the United States. Federal Reserve Banks must maintain a reserve in gold certificates of at least 25 per cent, including the redemption fund which must be deposited with the Treasurer of the United States, against Federal Reserve notes in actual circulation; gold certificates pledged as collateral may be counted as reserves. "Gold certificates" as herein used includes credits with the Treasurer of the United States payable in gold certificates. Federal Reserve Bank notes and national bank notes are in process of retirement. MARCH 1946 301 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MONEY IN CIRCULATION WITH ADJUSTMENT FOR ANALYSIS OF CHANGES IN GOLD STOCK OF SEASONAL VARIATION UNITED STATES [Outside Treasury and Federal Reserve Banks. In millions of dollars] [In millions of dollars] Date f u A o v n r m a a r s d o i e j a u a u t n s s i o o t t — e n n d al a A d v s j m a e u r a s o i s t a u e o t n d n io t a — n f l or s C a e h d a s a e s ju n o ri s g n e t e a s e 1 l d l i y n Period a p s G t e t o o r e o i f c n l o d k d d I i n n s c to r g e c o a k l s d e im g N o p e l o d t rt c g r m e o c o a E r l a r d s e r a e a i : k r n s d - e ( - e — d e- ) m t d g p D i u e o o r o o s c l n d - t - - 1 ic End of year figures: 1939 7 598 +742 19342 8 238 4 202 5 1 1330 82 6 92 9 1940 8 732 + 1,134 1935 10,125 1,887 2 1 7390 2 110 7 1941 ., 11 160 +2,428 1936 311 258 1 132 5 1 116(S —85 9 131 6 1942 15 410 +4 250 1937 312,760 1 502 5 1 585 s — 200 4 143 9 1943 20 449 +5,039 1938 14 512 1 751 5 1 973 —333 5 148 6 1944 25 307 +4 858 1939 17,644 3 132 0 3 574 ? —534 4 161 7 1945 28 515 +3,208 1940 21 995 4 351 2 4 744 s —644 7 170 2 1941 22,737 741 8 982 4 —407 7 169 1 Monthly averages of daily 1942. 22,726 -10.3 315 7 -458.4 125.4 figures: 1943 21,938 — 788 5 68 9 —803 6 48 3 1944 20 619 — 1 319 0 —845A —459 8 35 8 1944—September 23,525 23,572 +468 1945 20,065 —553 9 — 106 3 —356 7 34 8 October 24,112 24,112 +540 November 24,738 24,664 +552 1945—February.. . 20,506 -43.8 1.9 -37.4 2.3 December 25,207 24,957 +293 • March 20,419 -87.3 -19.1 -46.9 2.4 April 20,374 -45.1 2 4 -53.2 2.3 1945—January 25,243 25,167 +210 May 20,270 -103.3 -18 -66.9 2 6 February 25.527 25,527 +360 June 20,213 —57 3 —83 s 96 0 2 5 March 25,850 25,928 +401 July 20,152 -60.6 _7 0 -100.3 2.1 April 26 009 26,219 +291 August 20,088 -64.6 -12 3 -63.0 3.4 May 26,351 26,537 +318 September.. 20,073 -15.0 13 5 -19.0 2.9 June 26,561 26,694 +157 October 20,036 -36.9 -4 3 34.6 3.8 July 26,918 26,972 +278 November.. 20,030 -6.2 8 -38.2 4.0 August 27,392 27,530 +558 December. . 20,065 35.2 19 3 -4.3 3.8 September 27,765 27,821 +291 1946—January.. . . 20,156 91.0 P154 1 5 c —12 5 /3.8 October 27,943 27,943 + 122 February... P2O,232 P76.2 (4) s-5.8 /3.8 November 28,151 28,067 + 124 Jan.-Feb P20,232 P167.2 e 6-18.3 P7.7 December 28,452 28,170 + 103 1946—January 28,158 28,074 -96 P Preliminary. / Figure carried forward. e Corrected. February 27,944 27,944 -130 1 Annual figures through 1944 are estimates of the United States Mint. Annual figure for 1945 and monthly figures are those published 1 For end of year figures, represents change computed on absolute in table on p. 342, adjusted to exclude Philippine Islands production amounts in first column. received in United States. NOTE.—For discussion of seasonal adjustment factors and for back 2 Figures based on rate of $20.67 a fine ounce in January 1934 and figures on comparable basis see September 1943 BULLETIN, pp. 822-826. $35 a fine ounce thereafter. Because of an apparent recent change in the seasonal pattern around 3 Includes gold in the Inactive Account amounting to 27 million the year end, adjustment factors have been revised somewhat for dates dollars on Dec. 31, 1936, and 1,228 million on Dec. 31, 1937. affected, beginning with December 1942; seasonally adjusted figures * Not yet available. for money in circulation, as shown in Banking and Monetary Statistics, 6 Gold held under earmark at the Federal Reserve Banks amounted Table 111, p. 414, and described on p. 405, are based on an older series to 4,312.1 million dollars on Feb. 28, 1946. (Corrected figure for of adjustment factors. Jan. 31 is 4,306.4 million.) All of this was earmarked directly for foreign account except 102.8 million dollars which was earmarked in the name of a domestic bank as security for a foreign loan. NOTE.—For back figures, see Banking and Monetary Statistics, Table 156, pp. 536-538, and for description of statistics see pp. 522-523 in the same publication. BANK DEBITS AND DEPOSIT TURNOVER [Debits in millions of dollars] Annual rate of Debits to demand Annual rate of Debits to total deposit accounts except turnover of total deposit accounts turnover of demand interbank accounts deposits except except interbank deposits except interinterbank and Government bank and Government Year and month Total, all New 140 Other New 333 other New 100 other New 100 other reporting York other reporting York reporting York leading York leading centers City1 centers1 centers2 City centers City cities City cities 1937 469,463 197,836 235,206 36,421 193,143 215,090 29.5 22.4 1938 405,929 168,778 204,745 32,406 164,945 186,140 25.1 19.9 1939 423,932 171,382 218,298 34,252 167,939 200,636 21.0 19.4 1940 445,863 171,582 236,952 37,329 167,373 217,744 17.1 18.6 1941 537,343 197,724 293,925 45,694 193,729 270,439 17.3 19.4 1 1 9 9 4 4 2 2 — —o n l e d w s s e e ri r e ie s3 s3 6 6 0 4 7 1 , , 0 7 7 7 1 8 2 2 1 2 0 6 , ,8 9 6 6 5 1 3 3 4 4 2 7, , 8 4 3 3 7 0 5 6 3 7 , , 6 0 7 7 9 4 . •••-••• u.i 200,337 308,913 18.0 18.4 1943 792,937 296,368 419,413 77,155 16.5 11.7 258,398 369,396 20.5 17.4 1944 891,910 345,585 462,354 83,970 17.1 10.8 298,902 403,400 22.4 17.3 1945 '•974,102 »-404,543 479,760 '89,799 18.3 9.7 351,602 412,800 24.2 16.1 1945—January 82,756 34,990 40,305 7,461 18.6 9.9 30,826 34,801 27.0 16.9 February 70,249 29,065 34,724 6,461 17.7 9.7 • 25,416 30,024 24.3 16.0 March 81,077 31,884 41,722 7,471 17.0 10.0 28,924 36,008 22.9 16.1 April 74,139 29,413 37,846 6,881 17.2 9.9 25,115 32,430 20.8 15.5 May 81,724 33,678 40,643 7,403 18.8 10.1 28,384 34,418 21.4 15.3 June 98,024 41,725 47,716 8,583 22.0 11.3 36,951 41,870 28.9 18.9 July 79,163 33,590 38,286 7,287 17.5 9.2 29,190 32,662 25.6 16.1 August 73,208 29,388 36,767 7,054 14.4 8.2 24,803 30,796 19.7 13.7 September 71,169 28,545 35,718 6,906 16.5 9.1 26,534 30,631 22.9 14.9 October 81,616 34,984 39,006 7,626 18.1 8.8 29,990 33,474 22.4 14.4 November 79,401 32,246 39,255 7,900 18.1 9.9 28,423 34,616 23.5 16.5 December '•101,577 45,035 47,774 ''8,766 23.1 10.9 37,046 41,070 31.8 19.5 1946—January 89,132 38,819 41,977 8,337 18.5 9.1 34,165 35,546 28.3 16.2 r Revised. 1 National series for which bank debit figures are available beginning with 1919. 2 Annual figures for 1936-1942 (old series) include 133 centers; annual figures for 1942 (new series) and subsequent figures include 193 centers. 3 See p. 717 of August 1943 BULLETIN for description of revision beginning with May 1942; deposits and debits of new series for first four months of 1942 partly estimated. NOTE.—Debits to total deposit accounts, except interbank accounts, have been reported since 1942 for 334 reporting centers; the deposits from which rates of turnover have been computed have likewise been reported by most banks and have been estimated for others. Debits to demand deposit accounts, except interbank and U. S. Government, and the deposits from which rates of turnover have been computed have been reported by member banks in 101 leading cities since 1935; yearly turnover rates in this series differ slightly from those shown in Banking and Monetary Statistics, Table 55, p. 254, due to differences in method of computation. 302 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DEPOSITS AND CURRENCY—ADJUSTED DEPOSITS OF ALL BANKS AND CURRENCY OUTSIDE BANKS [Figurespartly estimated. In millions of dollars] Total Total Time deposits End of month c a d o u d b e u r j a p a r u t n n o e s s d i n k s t d i e s c t e d y s c a d d o u d e e u r j a p m u r t n o s e s a d i s n t d n i e c t e d d y s . d a e d T p j o u o t s s a t i l e ts d a D d d e e j p u m o s a t s e n it d d s 1 d G U e S m o p t n v a o e i e t t s n e e r i t s t n d s - 2 Total b m C a e n o r k m c s ia 3 - l * M s b a a v u n i t n k u g s a 4 s l S S P y a o s v t s i e n ta m g l s 5 C o u b u r a t r n s e i k n d s c e y banks 1929—June 55,171 26,179 51,532 22,540 381 28,611 19,557 8,905 149 3,639 December 54,713 26,366 51,156 22,809 158 28,189 19,192 8,838 159 3,557 1933—June 41,680 19,172 36,919 14,411 852 21,656 10,849 9,621 1,186 4,761 December 42,548 19,817 37,766 15,035 1,016 21,715 11,019 9,488 1,208 4,782 1937—June 57,258 30,687 51,769 25,198 666 25,905 14,513 10,125 1,267 5,489 December 56,639 29,597 51,001 23,959 824 26,218 14,779 10,170 1,269 5,638 1938—June 56,565 29,730 51,148 24,313 599 26,236 14,776 10,209 1,251 5.417 December 58,955 31,761 53,180 25,986 889 26,305 14,776 10,278 1,251 5,775 1939—June 60,943 33,360 54,938 27,355 792 26,791 15,097 10,433 1,261 6,005 December 64,099 36,194 57,698 29,793 846 27,059 15,258 10,523 1,278 6,401 1940—June 66,952 38,661 60,253 31,962 828 27,463 15,540 10,631 1,292 6,699 December 70,761 42,270 63,436 34,945 753 27,738 15,777 10,658 1,303 7,325 1941—June 74,153 45,521 65,949 37,317 753 27,879 15,928 10,648 1,303 8,204 December 78,231 48,607 68,616 38,992 1,895 27,729 15,884 10,532 1,313 9,615 1942—June 81,963 52,806 71,027 41,870 1,837 27,320 15,610 10,395 1,315 10,936 December 99,701 62,868 85,755 48,922 8,402 28,431 16,352 10,664 1,415 13,946 1943—June 110,161 71,853 94,347 56,039 8,048 30,260 17,543 11,141 1,576 15,814 December 122,812 79,640 103,975 60,803 10,424 32,748 19,224 11,738 1,786 18,837 1944—June 136,172 80,946 115,291 60,065 19,506 35,720 21,217 12,471 2,032 20,881 December 150,988 90,435 127,483 66,930 20,763 39,790 24,074 13,376 2,340 23,505 1945—January 151,200 92,300 127,500 68,600 18,300 40,600 24,600 13,600 2,400 23,700 February 150,800 93,800 126,700 69,700 15,600 41,400 25,200 13,700 2,500 24,100 March 150,600 95,100 126,400 70,900 13,400 42,100 25,700 13,900 2,500 24,200 April 150,900 98,100 126,400 73,600 9,800 43,000 26,300 14,100 2,600 24,500 May 152,600 100,800 127,800 76,000 8,200 43,600 26,700 14,300 2,600 24,800 June 162,785 94,150 137,688 69,053 24,381 44,254 27,171 14,426 2,657 25,097 July* 163,500 97,600 138,000 72,100 20,800 45,100 27,800 14,600 2,700 25,500 August P 163,400 100,000 137,400 74,000 17,300 46,100 28,500 14,800 2,800 26,000 September*.... 162,800 101,600 136,600 75,400 14,300 46,900 29,100 15,000 2,800 26,200 OctoberP 163,800 104,500 137,400 78,100 11,700 47,600 29,600 15,100 2,900 26.400 November*.. .. 168,100 107,000 141,600 80,500 13,100 48,000 29,800 15,300 2,900 26,500 December* .... 175,000 101,900 148,200 75,100 24,600 48,500 30,200 15,400 2,900 26,800 1946—January? 176.400 102,700 150,200 76,500 24,600 49,100 30,600 15.500 3,000 26,200 Preliminaayry . rReevsies ed. iinncclluuddeess ddeemmaanndd ddeeppoossiittss, , ootteh er than interbank andd UU . SS. . GGoovveernrnmment, less cash items in process of collection 2 BBegiii nning withit hD Db ecemb19e3r 81 9i38ld, incluUdeist dU nSittte d STtta' ttse s Trtei asurerds's i tt*i nt*d edeposits, open account. 0 Excludes intterrbbaa nk ttmimee ddeeppoossiittss aanndd ppoossttaall ssaavviinnggss rreeddepeopsoitietdd iin babnkks. 44 BBegiii nningJ June1 914914 1, hth e commericli abl kb anfki figures exldclude and mutual sayings bank figures include three member mutual savings banks 6 Includes both amounts redeposited in banks and amounts not so redeposited; excludes amounts at banks in possessions. NOTE.—Except on call dates, figures are rounded to nearest 100 million dollars. See Banking and Monetary Statistics, p. 11, for description and Table 9, pp. 34-35, for back figures. POSTAL SAVINGS SYSTEM BANK SUSPENSIONSl [In millions of dollars] Member Nonmember Assets Total, banks banks all End of month D it e o p r o s s ' - Cash U. S. s G ec o u v ri e t r i n es ment Cash banks ti N on a- al State su In re - d in N s o u n r - ed bal- in de- reances1 Total posi- serve b t a o n ry ks Total r D e i c - t G t a e n u e - d ar- fu et n c d .2 s, Num 1 b 9 e 3 r 4 o - f 3 9 banks suspended: 291 15 6 189 81 1940.. . . 22 18 3 1941 8 4 3 1 1939—Dec... 1,279 1,319 53 1,192 1,046 146 74 1942 9 6 3 1940—Dec.. . 1,304 1,348 36 1,224 1,078 146 88 1943. . . 4 2 2 1941—Dec.. . 1,314 1,396 26 1,274 1,128 146 95 1944 1 1 1942—Dec.. . 1,417 1,464 16 1,345 1,220 126 102 1945 0 1943—Dec... 1,788 1,843 10 1,716 1,716 118 1946—Jan -Feb 0 1944—Dec.. . 2,342 2,411 8 2,252 2,252 152 Deposits of suspended banks 1945—Jan. . . 2,404 2,477 8 2,308 2,308 162 (in thousands of dollars) :2 Feb.. . 2,458 2,536 8 2,363 2,363 164 1934-39 . . 125,991 14 61626,54844,348 40,479 Mar... 2,513 2,590 8 2,426 2,426 156 Apr.. . 2,563 2,646 8 2,463 2,463 175 1940. 5,943 256 5,341 346 May.. 2,609 2,696 8 2,518 2,518 170 1941 3,726 3 144 503 79 June. . 2,659 2,751 8 2,574 2,574 169 1942 1,702 1,375 327 July.. 2,720 2,809 7 2,625 2,625 176 1943 6,223 '4^982 1,241 Aug.. . 2,785 2,867 8 2,674 2,674 185 1944 405 405 Sept... 2,836 2,921 8 2,737 2,737 176 1945 0 Oct. .. 2,880 2,968 6 2,780 2,780 182 1946—Jan.-Feb 0 Nov... P2.910 Dec. .. P2.930 1 Represents banks which, during the periods shown, closed tem- 1946—Jan.... P2,979 porarily or permanently on account of financial difficulties; does not include banks whose deposit liabilities were assumed by other banks p Preliminary. at the time of closing (in some instances with the aid of Federal Deposit 1 Outstanding principal, represented by certificates of deposit. Insurance Corporation loans). 2 Includes working cash with postmasters, 5 per cent reserve fund 2 Deposits of member banks and insured nonmember banks susand miscellaneous working funds with Treasurer of United States, ac- pended are as of dates of suspension, and deposits of noninsured noncrued interest on bond investments, and accounts due from late post- member banks are based on the latest data available at the time the masters. suspensions were reported. Back figures.—See Banking and Monetary Statistics, p. 519; for Back figures.—See Banking and \Monetary Statistics, pp. 283-292; description, see p. 508 in the same publication. for description, see pp. 281-282 in the same publication. 303 MARCH 1946 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BANKS IN THE UNITED STATES, BY CLASSES* LOANS, INVESTMENTS, DEPOSITS, AND NUMBER OF BANKS [Amounts in millions of dollars] Loans and investments Deposits Investments Other Class of bank Number and of banks call date Total Loans Total G o U m o b v l . e i S e g n r . a t n - - s O i e t t c i h e u e s r r - Total1 b In a t n e k r * - m D a e n - d Time tions All banks: 1938—Dec. 31. 48,831 21,261 27,570 17,953 9,617 61,319 7,484 28.695 25,140 15,207 1939—Dec. 30. 50,885 22,169 28,716 19,402 9,314 68,225 9,883 32,492 25,850 15,035 1940—Dec. 31. 54,170 23,751 30,419 20,983 9,436 75,963 10,941 38,518 26,504 14,895 1941—Dec. 31. 61,101 26,616 34,485 25,488 8,997 81,780 10,989 44,316 26,476 14,825 1942—Dec. 31. 78,137 23,915 54,222 45,932 8,290 99,796 11,318 61,395 27,083 14,682 1943—Dec. 31. 96,966 23,601 73,365 65,932 7,433 117,661 11,012 75,561 31,08a 14,579 1944—June 30. 108,70-7 25,424 83,284 75,737 7,547 128,605 11,219 83,588 33,797 14,553 Dec.. 3;0. 119,461 26,015 93,446 85,885 7,561 141,449 12,245 91,644 37,559 14,535 1945--Tune 30. 129.639 27,979 101,661 93,657 8,004 151,033 12,605 96,725 41,702 14,542 Dec. 31 • 139,750 30,500 109,250 100,700 8,550 164,550 14,100 104,650 45,800 14,553 All commercial banks: 1938—Dec. 31 38,669 16,364 22,305 15,071 7,234 51,041 7,484 28,695 14,862 14,652 1939—Dec. 30 40,667 17,243 23,424 16,300 7,124 57,702 9,883 32,492 15,32? 14,484 1940—Dec. 31 43.922 18,792 25,130 17.T59 7,371 65,305 10,941 38,518 15,846 14,344 1941—Dec. 31 50,722 21,711 29,011 21,788 7,223 71,248 10,989 44,316 15,944 14,277 1942—Dec. 31 67,391 19,217 48,174 41,373 6,801 89,132 11,318 61,395 16,419 14,136 1943—Dec. 31 85,095 19,117 65,978 59,842 6,136 105,923 11,012 75,561 19,350 14,034 1944—June 30 95,731 21,010 74,722 68,431 6,290 116,133 11,219 83,588 21,326 14,009 Dec. 30 105,530 21,644 83,886 77,558 6,329 128,072 12,245 91,644 24,183 13,992 1945—Tune 30 114,505 23,672 90.833 84,069 6,764 136,607 12,605 96,725 27.276 14,000 Dec. 31" 123,450 26,150 97,300 90,000 7,300 149,150 14,100 104,650 30,400 14,014 All insured commercial banks: 1938—Dec. 31 37,470 16,021 21,449 14,506 6,943 49,772 7,254 27,849 14,669 13,655 1939—Dec. 30 39,289 16,863 22,426 15,566 6,859 56,069 9,523 31,483 15,063 13,531 1940— Dec. 31 42,556 18,394 24,161 17,063 7,098 63,461 10,539 37,333 15,589 13,438 1941—Dec. 31 49,288 21,258 28,030 21,046 6,984 69,411 10,654 43,061 15,697 13,426 1942—Dec. 31 66,240 18,903 47,336 40,705 6,631 87,803 11,144 60,504 16,154 13,343 1943—Dec. 31 83,507 18,841 64.666 58,683 5,983 104.094 10,705 74,309 19,081 13,270 1944—June 30 93,936 20,729 73,207 67,085 6,122 114,145 11,038 82,061 21,045 13,264 Dec. 30 103,382 21,352 82,030 75,875 6,155 125,714 12,074 89,761 23,879- 13,263 1945—June 30 112,353 23,376 «8,978 82,401 6,577 134,245 12,401 94,910 26,934 13,277 All member banks: 1938—Dec. 31... 32,070 13,208 18,863 13,223 5,640 43,363 7,153 24,842 11,369 6,338 1939—Dec. 30... 33,941 13,962 19,979 14,328 5,651 49,340 9,410 28,231 11,699 6,362 1940—Dec. 31... 37,126 15,321 21,805 15,823 5,982 56,430 10,423 33,829 12,178 6,486 1941—Dec. 312... 43,521 18,021 25,500 19,539 5,961 61,717 10,525 38,846 12,347 6,619 1942—Dec. 31. . . 59,263 16,088 43,175 37,546 5,629 78,277 11,000 54,523 12,754 6.679 1943—Dec. 31. . . 74,258 16,288 57,970 52,948 5,022 92,262 10,555 66,438 15,268 6,738 1944—June 30. .. 83,587 18,084 65,503 60,339 5,164 101,276 10,903 73,488 16,884 6,773 Dec. 30... 91,569 18,676 72,893 67,685 5,208 110,917 11,884 79,774 19,259 6,814 1945—June 30. . . 99,426 20,588 78,838 73.239 5,599 118.378 12,230 84,400 21.748 6.840 Dec. 31 «... 107,150 22,800 84,350 78,300 6,050 129,500 13,750 91,450 24,300 6,884 All national banks: 1938—Dec. 31. . . 20,903 8,469 12,434 8,691 3,743 27,996 4,499 15,587 7,910 5,224 1939—Dec. 30. .. 21,810 9,022 12,789 9,058 3,731 31,559 5,898 17,579 8,081 5,187 1940—Dec. 31. . . 23,648 10,004 13,644 9,735 3,908 35,787 6,574 20,885 8,329 5,144 1941—Dec. 31. . . 27,571 11,725 15,845 12,039 3,806 39,458 6,786 24,350 8,322 5,117 1942—Dec. 31. . . 37,576 10,183 27,393 23,744 3,648 50,468 7,400 34,499 8,570 5,081 1943—Dec. 31... 47,499 10,116 37,382 34,065 3,318 59,961 7,159 42,605 10,196 5,040 1944—June 30. .. 53,343 11,213 42,129 38,640 3,490 65,585 7,402 46,879 11,304 5,036 Dec. 30. .. 58,308 11,480 46,828 43,292 3,536 71,858 8,056 50,900 12,901 5,025 1945—June 30. .. 63,177 12,369 50,808 47,051 3,757 76,533 8,251 53,698 14,585 5,015 State member banks: 1938—Dec. 31 11,168 4,738 6,429 4,532 1,897 15,367 2,653 9,255 3,459 1,114 1939—Dec. 30 12,130 4,940 7,190 5,271 1,920 17,781 3,512 10,652 3,617 1,175 1940—Dec. 31 13,478 5,316 8,162 6,088 2,074 20,642 3,849 12,944 3,849 1,342 1941—Dec. 312 15,950 6,295 9,654 7,500 2,155 22,259 3,739 14,495 4,025 1,502 1942—Dec. 31 21,687 5,905 15,783 13,802 1,980 27,808 ,600 20,024 4.184 1,598 1943—Dec. 31 26,759 6,171 20,588 18,883 1,705 32,302 3,397 23,833 5,072 1,698 1944—June 30 30,244 6,870 23,373 21,699 1,674 35,690 3,501 26,609 5,580 1,737 Dec. 30..... 33,261 7,196 26,065 24,393 1,672 39,059 3,827 28,874 6,357 1,789 1945—June 30 36,249 8,219 28,030 26,188 1,842 41,844 3,980 30,702 7,163 1,825 ' Estimated. Figures have been rounded to the nearest 50 million dollars. * These figures do not include data for banks in possessions of the United States and therefore differ from those published by the Comptroller of the Currency and the'Federal Deposit Insurance Corporation for national banks and insured banks, respectively. 1 Beginning June 30, 1942, excludes reciprocal bank balances, which on Dec. 31, 1942, aggregated 5,13 million dollars at all member banks and 525 million at all insured commercial banks. 8 During 1941 three mutual savings banks, with total deposits of 8 million dollars, became members of the Federal Reserve System. These banks are included in both "member banks" and "insured mutual savings banks," are not included in "commercial banks," and are included only once in "all banks." 8 Decreases in "noninsured nonmember commercial banks" figures reflect principally the admission to membership in the Federal Reserve System of one large bank with total loans and investments aggregating 554 million dollars on Dec. 31, 1942. * Beginning June 30, 1942, includes Bank of North Dakota, a nonmember bank not previously included in these statistics; on Dec. 31, 1941, its deposits, excluding interbank deposits, were 33 million dollars and ks loans and investments 26 million. Back figures.—See Banking and Monetary Statistics, Tables 1-7, pp. 16-23; for description, see pp. 5-15 in the same publication. 304 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ALL BANKS IN THE UNITED STATES, BY CLASSES '—Continued LOANS, INVESTMENTS, DEPOSITS, AND NUMBER OF BANKS [Amounts in millions of dollars] Loans and investments Deposits Investments Other Class of bank and Number call date Total Loans G U ov . e S rn . - Other Total1 I b n a t n e k r- 1 of banks Total ment secu- De- Time obliga- rities mand tions All nonmember commercial banks: 1938—Dec 31 6,598 3,156 3,442 1,848 1 SQ4 7,678 331 3,853 3,493 8,314 1939—Dec. 30 ... . . .. 6,726 3,281 3,445 1,971 474 8,362 473 4,260 3 629 8,122 1940—Dec 31 6,796 3,471 3,325 1,936 ,389 8,875 518 4,689 3,668 7,858 1941—Dec. 31 . . .. 7,208 3,693 3,515 2 251 264 9,539 464 5,470 3 605 7,661 1942—Dec. 31 8,135 3,132 5,003 3,829 ,174 10,864 318 6,872 3,674 7,460 1943—Dec 31 10,847 2,832 8,014 6 899 115 13,671 457 9,123 4 091 7,299 1944—June 30 12,155 2,929 9,226 8,099 .128 14,869 315 10,100 4,453 7,239 Dec 30 13,972 2,971 11,002 9 880 1 122 17 168 362 11,870 4 936 7,181 1945—June 30 15,091 3,087 12,005 10,839 1,166 18,242 375 12,326 5,541 7,163 Dec. 31 « 16,300 3,350 12,950 11,700 1,250 19,650 350 13,200 6,100 7,130 Insured nonmember commercial banks: 1938-—Dec 31 5,399 2,813 2,586 1,283 1,303 6,409 101 3,007 3,300 7,317 1939—Dec. 30 5,348 2,901 2,447 1,238 1,209 6,729 113 3,252 3,365 7,169 1940—Dec 31 5,429 3,074 2,356 1,240 1,116 7,032 116 3,504 3,411 6,952 1941—Dec. 31 5,774 3,241 2,533 1,509 1,025 7,702 129 4,215 3,358 6,810 1942—Dec 31 6,984 2,818 4,166 3,162 1,004 9,535 145 5,981 3,409 6,667 1943—Dec. 31 9,258 2,556 6,702 5,739 962 11,842 149 7,870 3,823 6,535 1944—June 30 10,360 2,648 7,712 6,752 960 12,880 135 8,573 4,172 6,494 Dec. 30 11,824 2,678 9,146 8,197 949 14,809 190 9,987 4,632 6,452 1945—June 30 12,940 2,790 10,150 9,170 979 15,880 171 10,510 5,199 6,440 Noninsured nonmember commercial banks: 1938—Dec 31 1,199 343 856 565 291 1,269 230 846 193 997 1939—Dec. 30 1,378 380 998 733 265 1,633 360 1,008 264 953 1940—Dec. 31 1,367 397 969 696 273 1,843 402 1,185 257 906 1941—Dec. 31 1,434 452 982 742 239 1,837 335 1,255 247 851 1942—Dec 313 4 1,151 314 837 667 170 1,329 173 891 265 793 1943—Dec 31 1,588 276 1,312 1,160 153 1 829 307 1,253 269 764 1944—june 30 1,795 281 1,514 1,347 168 1,989 181 1,527 281 745 Dec 30 2,148 292 1,856 1,682 174 2 358 171 1,883 304 729 1945—june 30 2,152 297 1,855 1,668 187 2,362 204 1,815 343 723 All mutual savings banks: 1938—Dec. 31 10,162 4,897 5,265 2,883 2,382 10,278 10,278 555 1939—Dec. 30 10,218 4,926 5,292 3,102 2,190 10,523 10,523 551 1940—Dec 31 . 10,248 4,959 5,289 3,224 ? 065 10 658 10 658 551 1941—Dec. 312 » 10,379 4,905 5,474 3,700 L,774 10,532 10,532 548 1942—Dec. 31 10,746 4,698 6,048 4,559 ,489 10,664 10,664 546 1943—Dec. 31 11,871 4,484 7,387 6,090 L ,297 11,738 11,738 545 1944—June 30 12,976 4,414 8,562 7,306 1,257 12,471 12,471 544 Dec. 30 13,931 4,370 9,560 8,328 L, 232 13,376 13,376 543 1945—June 30 15,134 4,307 10,827 9,588 ,240 14,426 14,426 542 Dec 31 e 16, 300 4,350 11,950 10,700 750 15,400 15,400 539 Insured mutual savings banks: 1938—Dec 31 972 461 511 280 232 1,012 1,012 48 1939—Dec. 30 1,329 605 724 422 303 1,409 1,409 51 1940—Dec 31 1,655 637 1,018 548 470 1,818 1,818 53 1941—Dec 312 1,693 642 1,050 629 421 1,789 1,789 52 1942—Dec. 31 2,007 740 1,267 861 405 2,048 2,048 56 1 19 9 4 4 4 3 — — i D ju e n c e . 3 3 0 1 . . . '. 8 7 , , 4 5 8 2 9 5 3 3, , 1 0 1 7 1 3 5 4, , 4 3 5 7 2 8 3 4, , 7 8 5 4 2 4 6 62 0 6 8 8 7 i(5 2 3 3 4 5 8 7 , , 2 53 3 4 5 1 1 8 9 4 2 * Dec. 30 9,223 3,110 6,113 5,509 604 8,910 8,910 192 I945—June 30 10,063 3,089 6,974 6,368 607 9,671 9,671, 192 Noninsured mutual savings banks: 1938—Dec 31 9,190 4,436 4,754 2,603 2,150 9,266 9,266 507 1939—Dec 30 8,889 4,321 4,568 2,680 1,887 9,114 9,114 500 1940—Dec. 31 8,593 4,322 4,271 2,676 1,595 8,840 8,840 498 1941—Dec 31 8,686 4,263 4,424 3,071 1,353* 8,743 8,743 496 1942—Dec 31 8,739 3,958 4,781 3,698 1,084 8,616 8,616 490 1943 Dec 31 4,345 1,411 2,935 2,246 689 4,204 4,204 361 1944—June 30 4,487 1,302 3,185 2,554 631 4,236 4,236 352 Dec 30 4 708 1 260 3 448 2 819 629 4 466 4 466 351 1945—June 30 5,071 1,218 3,853 3,220 633 4,754 4,754 350 For footnotes see page 304. 305 MARCH 1946 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ALL INSURED COMMERCIAL BANKS IN THE UNITED STATES, BY CLASSES* LOANS AND INVESTMENTS [In millions of dollars] Loans Investments Loans for U. S. Government obligations Com- purchasing Oblimer- or carrying ga- Total cial, securities Direct tions Class of bank loans in- Agri- Real- of and clud- cul- es- Con-Other StatesOther call date and ing tur- To tate sumer loans Total Cer- Guar- and secuinvest- Total open- al brok- loans loans Total tin- an- politi- rities ments mar- ers To Bills cates Notes teed cal ket and oth- of in- Bonds subpaper deal- ers debt- diviers n e e d s - s sions All insured commercial banks .-i 1 1 9 9 4 3 0 8 — — D D eecc. . 3 3 1 1... 3 4 7 2 , ,5 4 5 7 6 0 1 1 8 6 , , 3 02 9 1 4 5 7 , , 6 1 3 78 61 1 , , 0 2 6 8 0 1 1,0 6 0 63 2 8 7 8 2 5 7 3 4 , , 8 4 5 68 7 3 4 ,0 5 7 8 7 3 2 2 4 1, , 4 1 4 6 9 1 1 1 7 4 , , 0 5 6 0 3 6 6 2 6 9 2 0 3 2^ ,6 7 4 5 8 6 9 8 ^ ,0 9 0 2 0 53 2 , , 7 5 1 6 9 83 3 , , 0 6 1 0 1 83 3 , , 4 9 9 3 1 2 1941—Dec. 31.. . 49,288 21,258 9,214 1,450 614 662 4,773 4,545 28,030 21,046 988 3,159 12,7974,1023,6513,333 1942—Dec. 31... 66,240 18,903 7,7571,642 950 597 4,6462,2691,042 47,336 40,705 4,462 '6^727 5,79920,9992,7183,5333,098 1943—Dec. 31... 83,507 18,841 7,7771,505 1,414 922 4,437 1,868 918 64,666 58,683 4,636 13,218 7,67230,6562,5013,2872,696 1944—June 30... 93,936 20,729 7,4061,4742,2212,2964,364 1,862 1,106 73,207 67,085 4,70815,46611,83434,114 963 3,3932,730 Dec. 30. .. 103,382 21,352 7,9201,7232,2692,2654,343 1,888 944 82,030 75,875 3,971 15,30015,77839,848 978 3,4222,733 1945—June 30. .. 112,353 23,376 7,5011,6323,1133,6014,4132,1081,008 88,978 82,401 2,83117,20416,45445,870 433,6842,892 Member banks,1 total: 1938—Dec. 31. .. 32,070 13,208 5,179 712 973 775 2,716 ? 853 18,863 13,222 286 3,389 7,2082,3402,4483,192 1940—Dec. 31... 37,126 15,321 6,660 865 642 652 3,228 3'273 21,805 15,823 652 2,594 9,0913,4863,0132,970 1941—Dec. 31. .. 43,521 18,0218,671 972 594 598 3,494 3! 692 25,500 19,539 971 3,00711,7293,8323,0902,871 1942—Dec. 31... 59,263 16,088 7,3871,089 934 538 3,4231,847 870 43,175 37,546 4,363 6\285 5,40918,9482,5402,9652,664 1943—Dec. 31. .. 74,258 16,288 7,4211,023 1,398 839 3,2741,484 848 57,970 52,948 4,36012,071 6,90627,2652,3452,7292,294 1944—June 30. .. 83,587 18,084 7,0231,0232,2002,1303,2071,467 1,033 65,503 60,339 4,466 14,22810,64030,118 887 2,8342,331 Dec. 30. . . 91,569 18,676 7,5311,1982,2492,1083,2091,505 877 72,893 67,685 3,74813,98214,12734,927 902 2,8572,350 1945—June 30. .. 99,426 20,588 7,0951,1253,0893,4073,2481,688 934 78,838 73,239 2,63315,58414,72340,266 33 3,102 2,497 Dec. 31*. . 107,143 22,786 84,357 78,308 3,2532,797 New York City:* 1938—Dec. 31... 8,335 3,262 1,594 5 787 220 121 535 5,072 3,857 158 1,142 1,663 894 517 698 1940—Dec. 31. .. 10,910 3,384 2,125 6 465 190 130 468 7,527 6,044 207 1 245 2 9771,615 695 788 1941—Dec. 31. .. 12,896 4,072 2,807 8 412 169 123 554 8,823 7,265 311 1,623 3,6521,679 729 830 1942—Dec. 31. .. 17,957 4,116 2,546 21 787 193 117 303 148 13,841 12,547 1,855 2,144 2,056 5,4201,071 593 701 1943—Dec. 31... 19,994 4,428 2,515 24 1,054 323 107 252 153 15,566 14,563 1,328 3,409 1,829 7,014 984 444 558 1944—June 30. . . 22,669 5,479 2,430 64 1,657 751 93 232 251 17,190 16,157 1,258 4,242 2,805 7,650 201 456 577 Dec. 30. .. 24,003 5,760 2,610 30 1,742 859 86 253 179 18,243 17,179 913 3,740 3,745 8,592 189 468 596 1945—June 30. . . 25,756 7,069 2,380 53 2,5281,539 76 270 223 18,687 17,492 424 3,538 3,607 9,920 2 567 629 Dec. 31*. . 26,143 7,333 18,810 17,575 606 629 Chicago:2 1938—Dec. 31. . . 1,969 539 335 17 43 70 12 6*5 1,430 1,114 59 291 655 109 141 176 1940—Dec. 31. .. 2,377 696 492 5 42 54 19 84 1,681 1,307 297 145 752 112 188 186 1941—Dec. 31. .. 2,760 954 732 6 48 52 22 96 1,806 1,430 256 153 903 119 182 193 1942—Dec. 31... 3,973 832 658 6 34 32 23 62 18 3,141 2,789 397 "637 391 1,282 83 166 186 1943—Dec. 31. .. 4,554 1,004 763 6 102 52 22 45 14 3,550 3,238 199 877 484 1,602 74 158 155 1944—June 30. .. 5,124 1,064 710 11 102 130 21 49 40 4,060 3,688 367 1,038 587 1,665 31 204 169 Dec. 30. .. 5,443 1,184 738 17 163 163 24 45 34 4,258 3,913 250 1,045 779 1,809 31 160 185 1945—June 30. .. 5,730 1,250 671 13 159 299 23 50 34 4,480 4,130 127 1,253 814 1,936 154 196 Dec. 31P.. 5,931 1,332 4,598 4,213 181 204 Reserve city banks: 1938—Dec. 31. .. 11,654 4,-9632,063 207 119 242 1,230 1 :01 6,691 5,018 57 1,224 2,997 740 808 866 1940—Dec. 31. .. 13,013 5,931 2,589 263 115 207 1,436 1*322 7,081 5,204 103 771 3 2811,049 984 893 1941—Dec. 31. .. 15,347 7,105 3,456 300 114 194 1,527 l!512 8,243 6,467 295 751 4,248 1,173 956 820 1942—Dec. 31. .. 20,915 6,102 2,957 290 97 153 1,486 808 312 14,813 13,038 1,441 'i',253 1,723 6,810 811 954 821 1943—Dec. 31... 27,521 6,201 3,058 279 217 267 1,420 658 301 21,321 19,682 1,802 4,691 2,497 9,943 749 913 726 1944—June 30. . . 30,943 6,761 2,787 277 409 903 1,385 650 350 24,183 22,484 1,914 5,586 3,89310,689 402 963 735 Dec. 30. .. 33,603 6,822 3,034 348 311 777 1,379 660 313 26,781 25,042 1,704 5,730 5,181 11,987 440 1,000 740 1945—June 30. .. 36,572 7,155 2,883 304 371 1,147 1,378 757 315 29,417 27,523 1,320 6,598 5,68913,906 10 1,100 794 Dec. 3 1P 40,104 8 508 31,596 29,559 1,126 911 Country banks: 1938—Dec. 31. .. 10,113 4,444 1,186 483 25 243 1,353 1, 154 5,669 3,233 11 732 l',893 597 982 1,453 1940—Dec. 31. .. 10,826 5,309 1,453 590 21 201 1,644 1 400 5,517 3,269 45 433 2,081 710 1,146 1,102 1941—Dec. 31... 12,518 5,890 1,676 659 20 183 1,823 1,530 6,628 4,377 110 481 2,926 861 1,222 1,028 1942—Dec. 31... 16,419 5,038 1,226 772 17 161 1,797 674 393 11,380 9,172 671 " i ^2511,240 5,436 574 1,252 956 1943—Dec. 31. .. 22,188 4,654 1,084 713 - 25 197 1,725 528 381 17,534 15,465 1,032 3,094 2,096 8,705 538 1,214 855 1944—June 30... 24,850 4,780 1,096 671 33 345 1,708 536 392 20,071 18,009 926 3,362 3,35510,114 252 1,212 849 Dec. 30. .. 28,520 4,910 1,149. 802 32 310 1,719 547 351 23,610 21,552 882 3,466 4,422 12,540 241 1,230 829 1945—June 30. .. 31,368 5,114 1,162 755 32 422 1,771 611 362 26,253 24,094 762 4,194 4,613 14,504 21 1,281 878 Dec. 31P. . 34,966 5,612 29,354 26,961 1,340 1,053 Insured nonmember commercial banks: 1938—Dec. 31. .. 5,399 2,813 457 348 28 110 1,141 730 2,586 1,283 4 259 793 228 563 739 1940—Dec. 31... 5,429 3,074 518 416 21 75 1,240 803 2,356 1,240 10 162 834 234 595 521 1941—Dec. 31. .. 5,774 3,241 543 478 20 64 1,282 8*^4 2,533 1,509 17 152 1 069 271 563 462 1942—Dec. 31... 6,984 2,818 370 553 16 59 1,225 422 173 4,166 3,162 99 442 390 2,053 179 569 435 1943—Dec. 31. .. 9,258 2,556 356 482 16 82 1,165 385 70 6,702 5,739 276 1,147 766 3,395 156 560 403 1944—June 30.. . 10,360 2,648 383 452 21 166 1,159 395 73 7,712 6,752 242 1,238 1,194 4,002 76 560 400 Dec. 30. .. 11,824 2,678 389 525 21 156 1,136 383 67 9,146 8,197 223 1,319 1,652 4,928 76 566 383 1945—June 30. . . 12,940 2,790 406 506 24 193 1,167 420 74 10,150 9,170 198 1,620 1,731 5,611 10 584 396 Preliminary. * These figures do not include data for banks in possessions of the United States and therefore differ from those published by the Federal Deposit Insurance Corporation. 1 During 1941 three mutual savings banks with total deposits of 8 million dollars became members of the Federal Reserve System. These banks are included in "member banks" but are not included in "all insured commercial banks." 2 Central reserve city banks. 306 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ALL INSURED COMMERCIAL BANKS IN THE UNITED STATES, BY CLASSES *—Continued RESERVES AND LIABILITIES fin millions of dollars] Demand deposits Time deposits Cla c s a s l a l o n d f d a b te ank F s B s w e e R R e a r d i r e v n e t e v - h - e k r e s s al v C a i a n u s l h t b m a w B a n d e n i a c o s t k l e t - h - i s s c 3 j p m u D o a d s a d t s e e n e i - - - t d d s 4 m D e I s d n o t - e t ic e p 3 r o b s a i F e t n i s o k g r n - U m G e . r o e n v n S - - t . p v S s o i u a t l s a i b n i t o t d d i e c n i s a - s l c C h c o a f e e e e i f n t e c f r r c d i d t s k - . i ' s - , p a v n a s p I t i h d r i n o d o t i d r n p u c n a i e s o a s - - , r l r - s - I b n a t n e k r- P m G U S e i a o n r a o n e . s g n v S d v n t s - - . a - t l v S p s i a i u s o t c n i a b l a o d i t d l t n e - i s s - p a v n a s p i I t h d d r i n o o t i u d n r p c n a a i e s o s - l - , r s r - - , r B i o n o w g r s - - c C o a t a a u c p l - n i- ts All insured Commercial banks:1 1938—Dec. 31.. 8,694 950 5,663 25,198 6,595 503 838 2,942 595 23,475 157 86 575 14,009 18 6,434 1940—Dec. 31. . 13,992 1,234 8,202 33,820 9,677 702 666 3,298 971 32,398 160 69 522 14,998 11 6,673 1941—Dec. 31. . 12,396 1,358 8,570 37,845 9,823 673 1,762 3,677 1,077 36,544 158 59 492 15,146 10 6,841 1942—Dec. 31. . 13,072 1,305 9,080 48,221 10,234 813 8,167 3,996 1,219 47,122 97 61 397 15,697 10 7,055 1943—Dec. 31. . 12,834 1,445 8,445 59,921 9,743 893 9,950 4,352 1,669 58,338 68 124 395 18,561 46 7,453 1944—June 30. . 12,812 1,464 8,776 59,197 10,030 940 18,757 4,402 1,550 57,351 68 108 407 20,530 84 7,709 Dec. 30.. 14,260 1,622 9,787 65,960 11,063 948 19,754 4,518 1,354 64,133 64 109 423 23,347 122 7,989 1945^-June 30. . 14,806 1,474 9,959 68,048 11,217 1,119 23,478 4,698 1,240 65,494 66 105 482 26,346 65 8,340 Member banks,1 total: 1938—Dec. 31.. 8,694 746 4,240 22,293 6,510 501 790 2,386 547 21,119 142 61 462 10,846 6 5,424 1940—Dec. 31. . 13,992 991 6,185 30,429 9,581 700 616 2,724 913 29,576 141 56 435 11,687 3 5,698 1941—Dec. 31. . 12,396 1,087 6,246 33,754 9,714 671 1,709 3,066 1,009 33,061 140 50 418 11,878 4 5.886 1942—Dec. 31. . 13,072 1,019 6,147 42,570 10,101 811 7,923 3,318 1,142 42,139 87 56 332 12,366 5 6'l01 1943—Dec. 31. . 12,835 1,132 5,450 52,642 9,603 891 9,444 3,602 1,573 51,820 62 120 327 14,822 39 6,475 1944—June 30. . 12,813 1,143 5,799 51,829 9,904 937 17,634 3,638 1,460 50,756 63 104 333 16,448 75 6,696 Dec. 30. . 14,261 1,271 6,354 57,308 10,881 945 18,509 3,744 1,251 56,270 58 105. 347 18,807 111 6,968 1945—June 30. . 14,807 1,150 6,486 59,133 11,064 1,106 21,967 3,877 1,138 57,417 61 102 392 21,254 52 7,276 Dec. 31P. 62,912 New York City:2 1938—Dec. 31. . 4,104 68 109 7,168 2,687 437 139 280 195 7,273 6 36 652 1,593 1940—Dec. 31. . 7,057 102 122 11,062 4 032 641 48 370 471 . 11,357 5 51 768 ,615 1941—Dec. 31. . 5,105 93 141 10,761 3,595 607 866 319 450 11,282 6 29 778 I ,'648 1942—Dec. 31. . 4,388 72 82 11,899 3,209 733 4,186 263 448 12,501 3 23 711 1,727 1943—Dec. 31. . 3,596 92 61 13,899 2,867 810 3,395 252 710 14,373 4 5 26 816 29 L,862 1944—June 30. . 3,455 85 60 13,254 3,105 852 6,150 213 722 13,740 11 7 17 861 64 ,907 Dec. 30. . 3,766 102 76 14,042 3,179 851 6,722 199 361 14,448 11 7 17 977 96 .966 1945—June 30. . 3,879 89 64 14,643 3,271 989 7,618 229 3,41 14,789 16 8 19 1,082 40 2^023 Dec. 31P. 15,712 Chicago:2 1 1 9 9 3 4 8 0 — — D De e c c . . 3 3 1 1 1,0 8 5 8 1 4 3 4 5 2 3 2 1 3 9 5 1 1 , , 6 9 8 4 8 1 6 9 5 9 8 7 9 8 9 8 0 3 1 1 8 7 1 4 2 2 9 7 1 1 , , 5 9 9 0 7 5 5 9 8 4 4 5 9 2 6 2 2 5 7 7 0 1941—Dec. 31.. 1,021 43 298 2,215 1,027 8 127 233 34 2,152 476 288 1942—Dec. 31.. 902 39 164 2,557 1,105 12 665 178 38 2,588 2 453 304 1943—Dec. 31.. 821 38 158 3,050 972 14 713 174 44 3 097 2 i 505 326 I944—june 30. . 811 41 179 3,070 1,090 15 1,105 218 41 3,040 1 543 343 Dec. 30. . 899 43 177 3 ,041 1,132 16 1,400 167 33 3,100 1 619 354 1945—June 30. . 929 33 180 3,152 1,174 19 1,499 193 29 3,124 1 663 362 Dec. 31P. 3 160 Reserve city banks: 1938—Dec. 31.. 2,354 321 1,940 7,214 2,719 53 424 796 170 7,034 113 17 269 4,233 1,777 1940—Dec. 31. . 4,027 396 2,741 9,581 3,919 49 327 995 228 9,468 107 19 226 4,505 1,904 1941—Dec. 31. . 4,060 425 2,590 11,117 4,302 54 491 1,144 286 11,127 104 20 243 4,542 1,967 1942—Dec. 31.. 4,940 365 2,202 14,849 4,831 63 1,982 1,319 385 15,061 63 22 169 4,805 2 2,028 1943—Dec. 31.. 5,116 391 1,758 18,654 4,770 63 3,373 1,448 475 18,790 41 56 151 5,902 2,135 1944—June 30. . 5,109 399 1 922 18 405 4 757 65 6,453 1,464 384 18,367 37 45 158 6,567 2,207 Dec. 30. . 5,687 441 2,005 20,267 5,421 70 6,157 1,509 488 20,371 33 40 154 7,561 2,327 1945—June 30. . 5,882 396 2,029 20,682 5,510 90 7,655 1,516 422 20,559 31 39 166 8,529 3 2,450 Dec. 31P. 22,281 Country banks: 1938—Dec. 31. . 1,353 322 1,956 6,224 446 2 143 1,128 154 5,215 23 44 147 5,509 6 1,798 1940—Dec. 31. . 1,857 452 3,002 7,845 633 2 151 1,184 187 6,846 29 33 150 5,917 3 1,909 1941—Dec. 31. . 2,210 526 3,216 9,661 790 2 225 1,370 239 8,500 30 31 146 6,082 4 1,982 1942—Dec. 31. . 2,842 542 3,699 13,265 957 4 1,090 1,558 272 11,989 20 32 140 6,397 3 2,042 1943—Dec. 31. . 3,303 611 3,474 17,039 994 5 1,962 1,727 344 15,561 17 56 149 7,599 10 2,153 1944—June 30. . 3,438 618 3,638 17,099 951 5 3,926 1,743 314 15,609 15 52 157 8,477 11 2,239 Dec. 30. . 3,909 684 4,097 19,958 1,149 8 4,230 1,868 369 18,350 14 57 175 9,650 16 2,321 1945—June 30. . 4,117 632 4,213 20,656 1,108 8 5,195 1,939 346 18,945 14 54 207 10,981 9 2,440 Dec. 3l*\ 21,759 Insured nonmember commercial banks: 1938—Dec 31 204 1,423 2,904 85 2 48 555 48 2 356 15 25 113 3,163 11 1,010 1940—Dec. 31. . 243 2,017 3,391 95 3 50 574 58 2,822 18 13 87 3,311 8 975 1941—Dec. 31 271 2,325 4,092 108 2 53 611 68 3,483 18 8 74 3,276 6 956 1942—Dec 31 287 2,934 5,651 133 2 243 678 76 4,983 10 5 65 3,339 5 955 I943—Dec. 31 313 2,996 7,279 141 2 506 750 96 6,518 6 4 68 3,750 6 979 1944—June 30 322 2,978 7,368 126 3 1,124 764 90 6 595 5 4 74 4,094 9 1,015 Dec. 30'. '. 352 3,434 8,652 182 3 1,245 775 103 7,863 6 4 76 4,553 10 1,022 1945—June 30 . 324 3,473 8,915 153 13 1,511 820 101 8,078 5 4 90 5,105 13 1,065 p Preliminary. 3 Beginning June 30, 1942, excludes reciprocal bank balances, which on Dec. 31, 1942, aggregated 513 million dollars at all member banks and 525 million at all insured commercial banks. * Demand deposits other than interbank and U. S. Government less cash items reported as in process of collection. For other footnotes see page 306. Back figures.—See Banking and Monetary Statistics. Table 18-45. pp. 72-103 and 108-113. MARCH 1946 307 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 For purchasing U. S. Government obligations or carrying securities Com- Total mer- Date or month in l m o a v n a e e n d n s s t t s - Total i t t a c n c a u r g i d u i n r a a r l u a d l i l - , - l s , - G a U t T l i o i n o o g . o b d n v a - S - s t b . . d r e o O a k c t l s u t e i e h e e r r r - s e s i s - r G l U t T o i i o g o b . o v a S n - - t s . . ot O h c t e u t i h e r n s s e - r e R l s o e t a a a n t l e s - b L a o t n o a k n s sO lo th an e s r Total Total Bills o d c C n t e f a e i e e d f t b s i i e r - t - n s - s - - Notes Bonds G t a e u n e a - d r- O s ri e t t h c ie e u s r - Total—101 Cities 1945—January 59,590 12,356 6,405 1,196 7261,236 3571,053 1,306 47,23444,345 2,813 10,008 9,23821,673 6132,889 1945—September.. 61,765 12,761 6,096 1,396 8501,390 3981,060 1,47349,00445,655 1,259 10,258 9,30124,826 3,349 October 60,988 12,438 6,267 1,263 8581,004 4021,062 500 48,55045,264 1,284 9,8539,159 24,959 3,286 November.. 61,646 13,034 6,659 1,382 8431,044 4011,068 568 48,61245,373 1,070 9,798 9", 04925,444 3,239 December.. 67,752 15,746 7,148 1,881 8542,560 4341,086 1,684 52,00648,710 1,958 11,196 9,080 26",464 3,296 1946—January 68,066 15,367 7,272 1,675 774 2,345 4321,102 631,704 52,69949,325 1,84912,518 7,98126,968 3,374 1945—Nov. 28 62,381 13,632 6,778 1,674 8071,222 4161,073 1,596 48,74945,501 975 9,8328,95325,729 3,248 Dec. 5 67,140 15,253 6,964 1,717 819 2,458 4271,079 129 660 51,887 48,6542,164 11,1939,052 26,233 3,233 Dec. 12 68,034 15,951 7,128 1,996 832 2,697 4371,081 98 ,68252,083 48,8172,03111,1879,116 26,471 3,266 Dec. 19 68,102 15,952 7,241 1,893 9012,589 4421,091 96 ,69952,15048,827 1,96211,218 9,07826,555 3,323 Dec. 26 67,733 15,829 7,259 1,917 8652,495 4321,091 71 1,69951,90448,541 1,67411,186 9,073 2"'6,598 10 3,363 1946—Jan. 2 67,948 15,890 1,910 8812,531 4271,095 83 ,71452,058 48,6741,761 12,130 8,036 26,737 10 3,384 Jan. 9 67,838 15,310 1,636 7632,418 4201,098 ,68452,528 49,133 1,95812,3717,968 26,825 111 3,395 Jan. 16 68,220 15,224 1,586 7652,303 4211,101 ,70852,996 49,6292,030 12,5937, ,003 9 3,367 Jan. 23 68,112 15,221 7,275 1,636 7322,252 4291,106 ,70852,891 49.531 ,75612,7167,96127,089 9 3,360 Jan. 30 68,211 15,190 7,300 1,608 729 2,225 1,107 1,703 53,02149,656 1,74212,778 7,94427,184 8 3,365 Feb. 6 68,223 15,135 7,342 1,535 715 2,184 4291,110 1061,714 53,088 49,716 1,70312,868 7,93127,202 123,372 Feb. 13 67,943 15,074 7,361 1,524 706 2,153 4311,118 58 ~" 52,869 49,485 ,52612,788 7,921 27,242 3»384 Feb. 20 68,182 15,181 7,386 1,558 7012,128 4651,125 80 1,738 53,001 49,586 1,51412,894 7,94527,226 3,415 rNew York City 1945—January 21,500 5,140 2,454 942 547 602 144 60 320 16,360 15,405 8433,346 3,340 7,713 163 955 1945—September.. 21,591 5,397 2,295 ,135 628 597 183 83 40916,194 14,965 280 2,811 3,019 8,853 1,229 October 21,281 5,173 2,415 ,021 623 377 185 68 41716,108 14,967 395 2,779 2,986 8,805 1,141 November.. 21,342 5,415 2,597 ,134 628 325 179 54 43415,927 14,855 209 2,750 2,939 8,955 1,072 December. .. 23,875 6,837 2,792 ,529 632 194 72 46217,038 15,958 580 3,155 2,916 9,305 1,080 1,091 1946—January. 23,754 6,412 2,837 ,317 570 185 45 477 17,342 16,244 553 3,492 2,699 9,498 1,098 918 1945—Nov. 28 21,677 5,759 2,647 ,403 607 191 49 442 15,918 14,848 164 2,736 2,864 9,082 1,070 356 Dec. 5 23,817 6,611 2,701 ,369 6141,107 198 101 45517,206 16,151 743 3,243 2,934 9,229 ,055 Dec. 12 23,914 6,997 2,797 ,644 6221,153 198 64 45516,917 15,857 525 3,0692,942 9,319 ,060 Dec. 19 23,952 6,902 2,841 ,541 6571,072 195 66 46517,050 15,973 610 3,132 2,904 9,325 ,077 Dec. 26 23,817 6,838 2,829 ,562 6351,033 186 54 47416,979 15,851 441 3, ,886 9,346 ,128 1946—Jan. 2 23,904 6,798 2,821 ,513 6311,048 176 67 47817,106 15,987 523 3,384 2,665 9,413 ,119 Jan. 9 23,641 6,328 2,815 ,251 565 960 173 30 47117,313 16,200 626 3, ,673 9,429 ,113 Jan. 16 23,770 6,283 2,853 ,240 567 877 178 25 47917,487 16,400 587 3,,553 2,723 9,535 ,087 Jan. 23 23,698 6,335 2,842 ,303 547 859 183 60 47817,363 16,275 470 3,,525 2,720 9,558 ,088 Jan. 30 23,758 6,315 2,853 ,279 541 846 213 42 479 17,443 16,360 560 3,,527 2,715 9,556 1,083 Feb. 6 23,815 6,282 2,886 1,212 533 834 186 91 47717,532 16,446 540 3,6082,728 9,568 1,087 Feb. 13 25,3,610 6,229 2,898 1,215 523 819 186 43 48117,381 16,299 473 3,528 2,735 9.562 1,082 Feb. 20 !3\662 6,344 2,920 1,250 522 819 216 66 486 17,318 16,227 375 3,5922,756 9,503 1.091 Outside "New York City 1945—January 38,090 7,216 3,951 254 179 634 213 982 986 30,87428,940 1,970 6,662 5,89813,960 4501,934 1945—September.. 40,174 7,364 3,801 261 222 793 215 993 1,064 32,81030,690 979 7,447 6,28215,973 9 2,120 October.. .. 39,707 7,265 3,852 242 235 627 217 995 32,44230,297 889 7,0746,173 16,154 2,145 November.. 40,304 7,619 4,062 248 215 719 2221,004 1,134 32,68530,518 861 7,048 6,110 16J489 10'2,167 December.. 43,877 8,909 4,356 352 2221,469 240 1,22234,96832,752 8,0416,164 1-7 ,15-9 10 2,216 1,021 1,378 1946—January 44,312 8,955 4,435 358 2041,427 247 1,227 35,35733,081 9,026 5,28217,470 2,276 1,039 1,296 1945—Nov. 28.... 40,704 7,873 4,131 271 200 866 225 1,15432,831 30,653 7,096 6,08916,647 10 2,178 1,009 811 Dec. 5.... 43,323 8,642 4,263 348 2051,351 229 ,013 1,205 34,68132,503 1,421 7,9506,118 17,004 10 2,178 Dec. 12.... 44,120 8,954 4,331 352 210 1,544 239 ,017 1,227 35,16632,960 1,506 8,1186,174 17,152 2,206 Dec. 19.... 44,150 9,050 4,400 352 244 ,517 247 ,026 1,234 35,10032,854 1,352 8,086 6,17417,230 2,246 Dec. 26.... 43,916 8,991 4,430 355 230 ,462 246 ,026 1,225 34,92532,690 1,233 8,0106,187 17,252 8 2,235 U946—Jan. 2.... 44,044 9,092 4,428 397 250 ,483 251 ,031 1.236 34,95232,687 1,238 8,746 5,37117,324 2,265 Jan. 9.... 44,197 8,982 4,427 385 198 ,458 247 ,035 1,213 35,21532,933 1,332 8,901 5,29517,396 9 2,282 Jan. 16.... 44,450 8,941 4,443 346 198 ,426 243 ,037 1.229 35,50933,229 1,443 9,,040 5,27117,468 2,280 Jan. 23.... 44,414 8,886 4,433 333 1851,393 246 ,043 1.230 35,52833,256 1,286 9,191 5,241 17,531 2,272 Jan. 30.... 44,453 8,875 4,447 329 1881,379 249 ,045 1,22435,578 33,296 1,182 9,251 5,22917,628 6 2,282 Feb. 6.... 44,408 8,853 4,456 323 1821,350 2431,047 1.237 35,555 33,270 1,163 9,260 5,20317,634 102,285 Feb. 13 44,333 8,845 4,463 309 1831,334 2451,054 1,242 35,48833,186 1,053 9,260 5,186 17,680 7 2,302 Feb. 20.... 44,520 8,837 4,466 308 1791,309 249 1,060 1,252 35,68333,359 1,139 9,302 5,18917,723 6 2,324 Back figures.—See Banking and Monetary Statistics, pp. 127-227. .308 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—Continued 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 R e a e r i r e a n t d v - h l k - e s va la i u n s l h t m b a w n a d e o i n s c t - t e k h i s c s j p m u o d a s a e d s t n - e i - t d d s 1 s p p u v n c h a o a a o i e n i r d r l p r r d s a t - - - s - , - , S p s d s a i i o t u i c o n a v l b a d n i t - i l t e - s - s c C c h a o f e e e i e f t n e c f r r c d i d . t s - k i ' - s u m G er . o e n v n - s - t . s u p p v n c h a a o o a i e n i d l p r r r r d s a - - - t s , - - , S p s d s t a i i o a u i c o n v l b t a n d i e - i l t - s s - P U G m S e i a o n . r a o n e s g n v v d n S t s - - - a t . l m D a e n b - d ank T s ime b F a ei n o g k r n - s r B i o n o w g r s - - c C o i a a t u c a p - n l - ts B d i e a ts b n * - k tions tions Total 101 Cities 1945—January.... 9,340 585 2,260 35,506 35,842 1,777 98712,9417,643 113 46 9,419 904 141 4,61765,627 h 1945—September. . 10,129 570 2,17538,74838,894 1,882 1,00910,0748,968 111 9,741 1,085 348 4,862 57,165 October 10,307 569 2,: ,33139,458 1,983 1,135 8 5719,087 108 9,921 1,105 312 4,905 63,464 November... 10,491 603 2,26639,75140,011 2,112 1,186 8|2189,186 106 10,419 1,116 533 4,942 63,039 December... 10,223 643 2,507 37,884 1,957 1,35916 2429,200 100 10,795 1,145 348 4,959 78,116 37,591 1946—January 10,218 592 2,431 37,888 1,997 1,25416,237 9,372 102 10,790 1,189 200 4,99569,711 37,648 1945—Nov. 28 10,741 627 2., 273 40,230 2,181 1,376 8,5479,194 110 4310,432 1,126 663 4,949 12,715 40,247 Dec. 5 10,485 598 51837,45237,726 1,984 1,492 15,9589,188 102 10,871 1,131 354 4,967 22,979 Dec. 12 10,037 651 570 37,38137,990 1,893 1,274 16,7619,190 102 10,812 1,132 258 4,955 16,934 Dec. 19 10,237 654 52537,97438,160 1,969 1,418 16,1499,195 97 10,833 1,154 328 4,958 18,443 Dec. 26 10,133 668 2,416 37,55637,662 1,981 1,251 16 100 9,228 99 10,666 1,162 451 4,954 12,801 1946—Jan. 2 10,217 610 2,59537,06637,674 1,949 1,631 16,660 9.304 99 11,061 232 4,993 18,273 Jan. 9 10,175 613 2,44837,38437,491 1,934 1,151 16 ,360 101 10,986 161 4,996 16,258 Jan. 16 10,375 583 2,52637,72838,257 1,956 1,220 16;1659,376 101 11,213 162 4,995 16,578 Jan. 23 10,236 568 2,35238,03738,084 2,024 1,195 16,032 9,402 '105 10,562 187 4.997 15,664 Jan. 30 10,088 585 2,238 38,02637,933 2,123 1,073 16,227 9,416 106 10,131 259 4,995 14,929 Feb. 6 10,133 545 2,231 37,82137,650 2,138 1,273 16291 9,442 115 10,180 1,224 290 5,025 15,761 F F e e b b . . 2 1 0 3 1 10 0 , , 0 1 0 1 4 0 5 6 7 0 3 4 2 2, , 2 3 7 0 5 9 3 3 7 7, , 6 5 8 4 7 2 3 3 7 8 , , 7 1 2 7 7 0 2 2 , , 1 1 4 4 1 0 1 1 , , 1 1 9 1 6 7 1 16 6 , , _ 3 3 8 4 7 8 9 9 , , 4 4 9 6 6 4 1 1 2 1 0 7 44 1 1 0 0 , , 0 2 6 1 5 2 1 1 , , 2 2 1 2 9 9 3 29 5 7 0 5 5 , , 0 0 3 2 6 9 1 1 6 3 , , 8 1 8 4 2 0 New York City 1945—January.... 3,345 91 12,76813,219 172 590 5,543 899 2,985 817 69 1,792 30,826 1945—September. . 3,671 86 14,198 14,541 168 618 4,005 1,119 2,941 971 122 86926,534 October 3,767 87 14,561 14,938 219 724 3,370 1,085 3,031 986 100 884 29,990 November... 3,809 98 14,711 15,127 261 726 3,077 ,100 3,138 992 227 28,423 December... 3,636 106 13,548 14,001 194 862 6,361 3,335 240 1,900 37,046 1,090 1,016 1946—January 3,654 91 13,53413,934 214 739 6,263 3,356 119 1,922 34,165 1,118 1,059 1945—Nov. 28 3,924 98 14,95615,278 280 910 3,096 3,175 359 1,896 5,888 1,101 1,002 Dec. 5 3,693 96 13,46913,970 191 963 6,469 1,097 3,374 1,001 191 1,903 10,614 Dec. 12 3,557 107 13,425 13,928 189 808 6,576 1,094 3,312 1,003 165 1,901 7,915 Dec. 19 3,634 109 13,67714,108 183 887 6,215 *,081 3,381 1,028 261 1,901 9,147 Dec. 26 3,659 112 13,625 13,999 213 791 6,183 1,089 3,272 1,031 344 1,893 5,742 1946—Jan. 2 3,690 95 13,38713,965 203 998 6,478 1.104 3,433 1,054 166 1,922 8,957 Jan. 9 3,612 97 13,420 13,739 191 661 6,226 1,121 3,374 1,068 90 1,924 7,942 Jan. 16 3,647 87 13,403 13,897 188 726 6,232 1,119 3,555 1,046 98 1,925 8,350 Jan. 23 3,690 86 13,73414,036 221 721 6.154 1,121 3.261 1,050 113 1,925 7.758 Jan. 30 3,631 92 13,72814,033 268 588 6,224 1,123 3,154 1,076 130 1,919 7,080 Feb. 6 3,64; 85 13,72813,982 266 823 6,234 1,125 3,156 1,096 154 1,936 7,462 Feb. 13 3,63: 96 13,461 13,928 281 647 6,250 1,125 10 3,183 1,099 159 1,937 6,053 Feb. 20.. . . 3,630 95 13,56713,898 247 748 6,257 1,138 10 3,136 1,090 130 1,940 8,203 Outside New York City 1945—January 5,995 494 2,234 22,73822,623 1,605 397 7,398 6,744 6,434 87 72 2,825 34,801 1945—September. . 6,458 484 2,151 24,55024,353 1,714 391 6,069 7,849 6,800 114 226 2,993 30,631 ' October 6., 540 482 2,186 24,77024,520 1,764 411 5,201 8,002 6,890 119 212 33,474 November.. 6,682 505 2,241 25,040 24,884 1,851 460 5,141 8,086 7,281 124 306 048 34,616 December... 6,587 537 2,478 24,04323,883 1,763 497 9,881 8,110 7,460 129 108 059 41,070 1946—January 6,564 501 2,40324,114 23,954 1,783 515 9,974 8,254 7,434 130 81 3,073 35,546 1945—Nov. 28 6,817 529 2,24725,29124,952 1,901 5,451 8,093 7,257 124 304 3,053 6,827 Dec. 5 6,792 502 2,480 23,98323.756 1,793 529 9,489 8,091 7,497 130 163 3,06412,365 Dec. 12 6,480 544 2,545 23,95624,062 1,704 466 •- • - - 8,096 7,500 129 93 3,054 9.019 Dec. 19 6,603 545 2,500 24,29724,052 1,786 531 9,9348,114 7,452 126 67 3,057 9,296 Dec. 26 6,474 556 2,390 23,93123,663 1,768 460 9,917 8,139 7,394 131 107 3,061. 7,059 1946—Jan. 2 6,527 515 2,56523,67923,709 1,746 10,1828,200 7,628 129 66 3,071 9,316 Jan. 9 6,56. 516 2,42323,96423,752 1,743 490 9,874 8,239 7,612 130 71 3,072 8,316 Jan. 16 6,728 496 2,50024,325 24,360 1,768 494 9,9338,257 7,658 131 64 3,070 8,228 Jan. 23 6,546 482 2,31924,30324,048 1,803 474 9,878r8,281 7,301 131 74 3,072 7,906 Jan. 30 6,457 493 2,214 24,29823,900 1,855 48510,0038,293 6,977 128 129 3,076 7,849 Feb. 6 6,486 460 2,20524,093 23,668 1,872 45010,057 8,317 7,024 128 136 3,089 8,299 Feb. 13 6,478 508 2,28224,08124,242 1,859 47010,098 8,339 7,029 130 191 3,092 7,087 Feb. 20 6,374 478 2,250 24,120 23,829 1,894 44810,130 8,358 6,929 129 167 3,096 8,679 * Revised. 1 DDeemmaanndd deposits other than interbank and U. S. Government, less cash items reported as in process of collection. 2 Monthly and weekly totals of debits to demand deposit accounts except interbank and U. S~,>. Government accounts. MARCH 1946 309 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 dollarsl Loans Investments For purchasing L. S Government obigations or carrying securities Com- Total merd F i e s d tr e ic ra t l a R nd e s d er a v te e i m n lo a v e n a e n n d s t s t s - Total i t t a c n c a u r g i u i n d r a a r l d u a l i - l , - l , s- G U a t l T i o i n o . g o o b d n a v - S b - s t . d . r e o O a k c t l s u e t i e h e e r r r - s s i e s - r G t U l i o T i o o g b . o v n a S - - t s . ot O h c t e s u t i h e e r r - s s e i- r e R l s o t e a a a n t l e s - b L a o t n o a k n s sO lo th an e s r Total Total Bills o d c C n t f e e a i e e f d b t s i i e r - n - t s - s - - Notes Bonds G t a e u n e a - d r- O r s i e t t h c i e e u r s - Boston Jan. 23 ... 3,419 805 472 46 23 51 18 70 2 123 2,614 2,542 100 589 389 i ±fr± 72 Jan. 30 3,443 818 481 52 24 51 18 70 2 120 2,625 2,552 105 583 386 1 478 73 Feb. 6 3,443 800 484 35 22 47 18 70 2 122 2,643 2,567 113 582 389 1,483 76 Feb. 13 3,424 813 485 42 22 47 19 70 4 124 2,611 2,534 82 578 384 1,490 77 Feb. 20 3,424 807 485 42 15 46 19 71 4 125 2,617 2,537 86 579 387 485 80 New York* Jan. 23 26,003 6,719 2,990 1,319 552 900 206 148 60 54419,284 18,099 52S 3,923 2,958 10,691 21,185 Jan. 30 26,077 6,694 3,003 1,290 546 886 236 147 42 54419,383 18,204 615 3,927 2,967 10,693 21,179 Feb. 6 26,127 6,660 3,036 1,223 538 873 208 148 91 54319,467 18,284 ,591 4,011 2,985 10,695 21,183 Feb. 13 25,925 6,610 3,048 1,230 527 857 208 150 43 54719,315 18,137 511 3,936 2,995 10,693 21,178 Feb. 20 25,990 6,728 3,068 1,268 527 857 238 151 66 55319,262 18,073 419 3,981 3,022 10,650 11,189 Philadelphia Jan. 23 . 2,836 549 244 11 33 74 11 33 1 142 2,287 2,082 141 404 292 J ?AS 205 Jan. 30 2 849 554 251 9 33 73 11 32 2 143 2 295 2 091 145 405 292 1,249 204 Feb. 6 2,853 558 256 8 33 70 10 33 1 147 2,295 2,088 141 411 284 t,252 207 Feb. 13 2,822 552 255 8 30 70 10 34 1 144 2,270 2,063 129 404 279 1,251 207 Feb. 20 2,832 J5.53 254 8 30 70 10 34 1 146 2,279 2,072 126 404 275 L.267 207 Cleveland Jan. 23 5,375 1,111 435 71 21 260 14 157 148 4,264 3,988 49 1,049 648 2,242 276 Jan. 30 5,406 1,108 433 71 23 261 14 157 149 4,298 4,018 67 1,066 644 2,241 280 Feb. 6 5,396 1,106 432 72 22 258 14 158 150 4,290 4.008 44 1,077 645 2,242 282 Feb. 13 5,398 L,103 438 63 25 252 14 158 5 153 4,295 4,010 36 1,080 650 2,244 285 Feb 20 5,400 ins 438 61 30 251 14 159 155 4,292 4,003 48 1,078 644 2,233 289 Richmond Jan. 23 2 232 396 173 5 6 78 10 50 68 1,836 1.764 71 417 211 1.065 72 Jan. 30 2,237 397 174 5 6 78 10 50 2 72 1,840 L767 69 421 211 ,066 73 Feb 6 2,243 401 174 10 6 78 10 50 2 71 1,842 1,769 71 428 209 ,061 73 Feb. 13 2 247 400 175 7 5 81 10 49 62 71 1,847 L 773 74 421 208 .070 74 Feb. 20 2,252 406 176 9 5 80 10 51 2 73 1,846 1,772 .57 435 208 .072 74 Atlanta Jan. 23 2,311 516 245 3 10 132 8 24 3 91 1,795 L,644 57 508 244 834 1 151 Jan. 30 2,299 511 246 2 10 129 8 24 3 89 1,788 1,638 57 503 241 836 1 150 Feb. 6 2,309 507 245 2 9 123 8 24 3 93 1,802 L.652 67 506 238 840 1 150 Feb. 13 2,315 504 245 2 9 120 9 25 2 92 1,811 1,661 67 505 239 849 1 150 Feb. 20 2,330 498 242 2 8 120 8 25 1 92 1,832 1,682 71 522 243 844 2 150 Chicago* Jan. 23 10,006 J R56 1 002 126 42 285 82 165 154 8,150 7,578 351 2,509 1,154 3,562 2 572 Jan. 30 10,004 ,842 995 125 42 281 82 165 152 8,162 7,589 330 2,534 1,158 3,567 573 Feb 6 9,951 ,845 991 135 41 279 80 166 153 8,106 7,536 290 2,530 1,146 3,570 570 Feb. 13 9 908 831 991 123 41 277 81 166 152 8,077 7,495 256 2,536 1,132 3,571 582 Feb 20 9 971 S1(S 989 116 39 272 80 167 153 8,155 7,570 337 2,533 1,144 3,556 585 St. Louis Jan. 23 .... 2,227 608 344 5 5 68 15 70 2 99 1.619 1,484 40 302 325 815 2 136 Jan 30 2 218 605 343 5 5 68 14 70 2 98 L ,613 J .477 27 304 326 820 136 Feb. 6... .... 2,218 605 344 4 5 68 13 70 4 97 L,613 L,477 31 301 324 817 4 136 Feb. 13 2,217 607 344 4 6 69 13 71 3 97 1,610 L,474 31 310 308 825 135 Feb. 20 2,221 613 348 5 6 65 15 71 4 99 L.608 ,474 23 313 306 832 134 Minneapolis Jan. 23 1,396 260 125 2 3 47 5 26 1 51 L, 136 L,081 31 237 168 645 55 Jan 30 1,398 257 125 1 3 45 5 27 1 50 L, 141 .083 15 238 159 671 58 Feb 6 1 409 258 126 1 3 44 4 28 1 51 151 1,095 22 243 159 671 56 Feb. 13 .... 1,398 255 125 1 3 43 4 28 1 50 1,143 1,086 13 244 159 670 57 Feb 20 1,395 250 122 1 3 41 4 28 1 50 1,145 1,088 24 243 153 668 57 Kansas City Jan. 23 2,503 434 252 2 4 55 9 40 1 71 2,069 1,923 82 568 397 876 146 Jan. 30 2,486 437 254 2 4 54 9 41 1 72 2,049 1,902 64 566 386 886 147 Feb. 6 2,488 434 252 2 4 53 9 41 1 72 2,054 1,907 71 570 379 887 147 Feb. 13 2,501 431 250 2 4 52 9 41 1 72 2,070 1,923 86 569 380 888 147 Feb. 20 2,511 429 249 2 4 51 9 41 1 72 2,082 1,933 93 574 378 888 149 Dallas Jan. 23 2,186 666 387 1 4 139 24 31 2 78 1,520 1,458 72 528 212 646 62 Jan 30 2 174 666 388 1 4 136 27 31 1 78 1,508 1,446 56 526 214 650 62 Feb 6 2 162 664 390 1 4 135 27 29 1 77 1,498 1,436 59 510 213 654 62 Feb.13 2,170 664 389 1 h 131 26 32 1 78 1,506 1,444 61 213 511 659 62 Feb. 20. 2,188 662 390 1 6 124 31 32 78 1,526 1,463 74 516 218 655 63 San Francisco Jan 23 7 618 1 301 606 45 29 163 27 292 139 6,317 5,888 237 1,682 963 3,004 2 429 Jan. 30 . . 7 620 1 301 607 45 29 163 28 293 136 6,319 5,889 192 1,705 960 3,027 5 430 Feb: 6, 7,624 1,297 612 42 28 156 28 293 138 6,327 5,897 203 1,699 960 3,030 5 430 Feb 13 7 618 1 301 616 41 28 154 28 294 143 6,314' 5,885 180 1,694 974 3,032 5 429 Feb. 20 7,668 1,311 625 43 28 151 27 295 142 6,357 5,919 156 1,716 967 3,076 4 438 City of Chicago * Jan. 23 6,087 1,274 753 121 35 184 73 37 85 4,799 4,432 280 1,592 659 367 Jan. 30 6,056 1,288 745 119 35 182 73 37 83 4,782 4,415 243 1,606 662 l!904 367 Feb. 6 6,012 1,278 742 130 34 181 72 37 82 4,734 4,371 214 1,599 657 1,901 363 Feb. 13 5,979 1,263 742 118 34 179 72 37 81 4,716 4,341 201 1,596 646 1,898 375 Feb. 20 6,053 1,250 739 112 32 177 72 37 81 4,803 4,425 295 1,592 638 1,900 378 • 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. 310 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

WEEKLY REPORTING MEMBER BANKS—BY FEDERAL RESERVE DISTRICTS—Continued RESERVES AND LIABILITIES fin millions of dollars] 1 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 l a R nd e se d r a v t e e B s w F e R e a e r i r e a n d t v h - l - k e s C va a u sh lt m b a w a n d e i n s o c t t e - k h i s c s p m u o d a s a d s t e n e i - - t d d s 1 s p p u v n c h a o a a o i n e i r r d l p r r d s a t - - - s - , - , S p s d s a i o i t u i c o n a v l a b n d i t i l t - e - s - s c C c h o a f e e e i e f n t e f r r c c d i d t s - . k i ' - s, U m G er . o e n v n S - - t . s p u p v n c h a o a o a i e n i d p l r r r r d s a - - - t s , - - , S p s d s t a i o i a u c i o n v l t a b d n i e i l t - - s s - P U m G S e i a o n . r a n o e s g n v d v n S t s - - - a t . l m D a e n b - d ank T s ime b F e a i o n g r k n - s B in o g r s - c C o i a t u a c a p n - l - ts B i a ts n 2 k tions tions Boston (6 Cities) Jan 23 472 57 125 2,133 2,109 113 39 907 432 2 317 27 5 287 687 Jan. 30 449 58 114 2,134 2,102 117 42 913 433 2 297 27 7 288 647 Feb 6 451 55 109 2,115 2,089 114 33 914 435 2 299 25 17 288 708 Feb. 13 456 58 115 2,117 2,098 lt)6 42 915 436 2 298 25 18 288 603 Feb. 20 457 56 113 2,112 2,094 116 34 915 437 2 291 26 13 289 685 New York (8 cities)* Jan. 23 3,948 117 11415,087 15,183 458 758 6,595 1,779 23 14 3,331 3 1,053 131 2,081 8,131 Jan. 30 3,871 123 10615,086 15,163 526 633 6,671 1,781 24 16 3,224 3 1,078 134 2,076 7,458 Feb 6 3 892 116 11315,079 1S09 3 530 861 6,681 1,784 26 16 3 226 2 1,098 166 2 093 7,861 Feb. 13 3,890 129 11414,818 15,070 " 562 675 6,700 1,785 27 16 3,252 2 1,101 181 2,094 6,359 Feb. 20 3,896 126 11614,944 15,022 537 781 6,710 1,798 29 18 3,206 2 1,092 150 2,097 8,634 Philadelphia(4 cities) Jan. 23 431 29 90 1,814 1,875 45 22 719 224 2 1 384 11 1 255 579 Jan 30 430 31 83 1,818 1,883 43 24 727 224 2 1 377 12 3 255 545 Feb. 6 428 29 77 1,806 1,867 45 19 729 225 2 1 377 11 6 256 612 Feb. 13 423 33 81 1,774 1,872 45 23 730 226 2 1 377 11 9 256 491 Feb. 20 420 32 78 1,774 1,842 50 22 733 225 2 1 372 11 15 256 650 Cleveland (10 cities) Jan. 23 773 76 211 2,984 3,005 139 47 1,135 1,242 25 588 7 4 4 479 836 Jan 30 738 76 205 2,957 ?,981 135 55 1,148 1,244 25 570 7 4 25 480 897 Feb. 6 757 71 208 2,951 2,949 139 52 1,156 1,246 32 567 7 4 23 481 840 Feb 13 736 78 214 2,921 3,on 132 56 1,158 1,250 32 556 7 4 51 482 715 Feb 20 729 76 211 2,931 2,959 135 53 1,162 1,253 34 549 7 4 28 483 922 Richmond (12 cities) Jan. 23 341 39 176 1,314 1 3?1 79 31 503 346 2 7 453 5 3 134 410 Jan. 30 332 38 151 1,304 1 ?99 81 29 508 347 2 7 423 5 4 2 134 395 Feb. 6 351 36 159 1,307 1,303 91 28 512 349 2 7 437 5 5 3 135 406 Feb. 13 339 39 163 1,314 1,324 82 28 514 350 2 7 428 5 4 5 135 408 Feb. 20 339 37 149 1,313 1,31? 86 28 515 351 2 7 417 5 3 8 135 446 Atlanta (8 cities) Jan. 23 382 30 155 1,270 1,206 195 16 461 418 4 3 607 1 8 5 123 386 Jan. 30 380 31 147 1,275 1,182 200 15 465 420 4 2 571 1 8 10 123 387 Feb. 6 383 28 153 1,279 1,192 198 14 467 419 4 2 586 1 8 6 124 390 Feb. 13 393 30 162 1,295 1,228 197 13 468 422 4 2 593 1 8 5 125 372 Feb. 20 380 29 156 1,300 1,??3 196 17 470 424 4 2 583 1 7 3 125 415 Chicago (12 cities)* Jan. 23 1,457 89 401 5,402 ?80 433 31 2,321/-1844 r(> 4 1,764 5 25 9 591 1,926 Jan. 30 1,473 92 405 5,451 5,304 455 83 2,365 1,850 6 4 1,693 5 22 9 592 2,007 Feb. 6 1 468 88 403 5,348 «i 71S 455 87 2,374 1,855 6 4 1,721 4 23 7 595 2,244 Feb.13-. 1,453 99 411 5,285 5,309 450 99 2,381 1,854 6 4 1,718 4 23 28 595 1,783 Feb. 20 1,403 89 403 5,278 160 454 83 2,387 1,858 6 4 1,699 4 23 41 596 2,248 St. Louis (5 cities) Jan. 23 342 22 115 1,078 1,131 64 16 480 342 1 1 672 2 7 133 390 Jan. 30 339 23 112 1,066 1,110 66 16 485 343 1 1 657 2 15 132 380 Feb. 6 338 21 113 1,052 1,100 65 14 488 345 1 1 662 2 16 133 409 Feb 13 351 23 117 1,075 \,139 69 14 494 346 1 1 664 2 3 133 338 Feb. 20 . 344 22 111 1,075 1,1?3 71 16 495 347 1 1 644 2 10 134 406 Minneapolis (8 cities) Jan. 23 199 10 96 669 650 76 13 369 211 359 2 12 87 254 Jan. 30 200 11 95 679 656 82 12 372 211 341 2 19 87 246 Feb. 6 197 94 678 650 83 11 374 212 347 2 16 87 249 Feb. 13 193 11 94 664 677 79 10 375 213 347 2 15 87 202 Feb 20 197 10 98 666 651 76 10 374 213 347 2 18 87 271 Kansas City(12 cities) Jan. 23 453 24 289 1 390 1L 377 162 28 493 292 1 940 c 13 147 465 Jan. 30 461 25 266 1,383 1,351 164 28 498 292 1 2 891 32 147 434 Feb 6 452 22 266 1,370 ,350 160 27 501• 293 1 901 20 148 453 Feb 13 464 25 286 1 404 L 409 159 29 503 294 1 2 909 23 148 406 Feb. 20 442 23 290 1,408 ,390 168 27 505 295 1 2 905 11 148 518 Dallas (9 cities) Jan. 23 401 25 293 1,376 1,396 80 34 481 271 14 2 650 132 406 Jan. 30 386 26 271 1,364 :1,365 87 29 483 271 14 609 133 366 Feb. 6 399 24 258 1,364 1,353 90 26 485 273 14 592 1 136 384 Feb. 13 383 26 275 1,358 1,398 92 25 490 274 15 600 137 386 Feb. 20. 384 24 273 1,380 .386 88 25 492 273 14 592 137 448 San Francisco (7 cities Jan. 23 1,037 50 287 3,520 3,551 180 110 1,568 2,001 27 7 497 43 548 1,194 Jan. 30 1,029 51 283 3,509 3,537 167 107 1,592 2,000 27 478 42 548 1,167 Feb. 6 1,017 46 278 3,472 3,489 168 101 1,610 2,006 27 465 44 10 549 1,205 Feb. 13 1,029 53 277 3,517 3,633 167 103 1,620 2,014 27 470 46 12 549 1,077 Feb. 20 1,013 49 277 3,506 3,565 164 100 1,629 2,022 27 7 460 46 549 1,239 City of Chicago * Jan 23 897 35 185 3,296 3,327 180 39 1,507 752 1 252 21 373 1,249 Jan 30 906 36 185 3,298 3,316 187 42 1,539 757 1,197 19 374 1,353 Feb 6 909 35 192 3,241 3,247 198 42 1,544 759 1,213 19 376 1,486 Feb 13 907 41 187 3,206 3,310 197 43 1,549 756 1,209 19 2 376 1,149 Feb. 20 863 36 185 3,225 3,249 203 38 1,554 758 1,209 19 377 1,458 r Revised. * See note on page 310. . 1 Demand deposits other than interbank and U. S. Government, less cash items reported as in process of collection. 3 Debits to demand deposit accounts except interbank and U. S. Government accounts. MARCH 1946 311 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

COMMERCIAL PAPER AND BANKERS' ACCEPTANCES OUTSTANDING fin millions of dollars] Dollar acceptances outstanding Held by Based on Commercial End of month • sta p o n a u d p t i e - n r g1 st • T a o n o u d t t a i - l ng Total Accept O b in i w l g l n s banks b B o i u l g ls ht Others2 I U S m i n t n p a i t o t t o e e r s d ts E U S f x n t r p a o i o t m t e e r s d ts ex D c o h l a l n ar ge G U o s n h o i i d t p s e p p d o e s i d t n o t r b s e F e d i t n o w r i e n e i e g n o n r States countries 1944—October 142 115 85 40 45 30 79 13 (3) 21 2 November 167 115 84 44 40 32 74 14 (3) 24 4 December 166 129 93 44 50 35 86 14 (») 25 3 1945—January 162 130 98 48 50 32 86 13 (3) 25 5 February 157 126 97 52 46 29 87 12 (3) 24 4 March 147 128 96 54 42 32 87 11 (3) 25 4 April 119 117 .90 52 38 . 26 81 10 (3) 24 2 May 103 104 82 51 32 22 72 9 (3) 22 2 June 101 107 80 44 36 27 74 10 (3) 20 3 July 107 117 90 45 45 226 81 9 (3) 22 4 August 110 128 101 50 50 28 91 10 (3) 25 2 September 111 135 104 52 52 31 98 11 (3) 23 3 October 127 135 100 53 46 35 95 12 (3) 22 6 November 156 145 107 58 49 38 100 15 (3) 23 6 December 159 154 112 64 48 42 103 18 (3) 26 7 1946—January 174 166 126 71 55 40 109 20 (3) 29 8 1 As reported by dealers; includes some finance company paper sold in open market. 2 None held by Federal Reserve Banks except on July 31, 1945, when their holdings were $486,000. " Less than $500,000. Back figures.—See Banking and Monetary Statistics, Table 127, pp. 465-467; for description, see p. 427. 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 Debit Debit cre C d u it s to ba m la e n rs c ' es1 Other credit balances End of month Customers' balances in balances in Cash on debit partners' firm hand Money ba ( l n a e n t c )i es a in n a v d c e c t s o r t u a m d n e i ts n n g t a in n a v d c e c t s o r t a u m d n e i ts n n g t a b n a d n k in s borrowed2 Free O (n th et e ) r a i I n n n v d p e t a s r t r a m t d n e i e n n r g t s' a in n v d In e t s r f t i a m r d m e in n g t I a n c ( c c n o a e u p t) n it t a s l accounts accounts 1936—June 1,267 67 164 219 985 276 86 24 14 420 December... 1,395 64 164 249 1,048 342 103 30 12 424 1937—June 1,489 55 161 214 1,217 266 92 25 13 397 December... 985 34 108 232 688 278 85 26 10 355 1938—June 774 27 88 215 495 258 89 22 11 298 December... 991 32 106 190 754 247 60 22 5 305 1939—June 834 25 73 178 570 230 70 21 6 280 December... 906 16 78 207 637 266 69 23 7 277 1940—June 653 12 58 223 376 267 62 22 5 269 December... 677 12 99 204 427 281 54 22 5 247 1941—June 616 11 89 186 395 255 65 17 7 222 December... 600 8 86 211 368 289 63 17 5 213 1942—June. . . 496 9 86 180 309 240 56 16 4 189 December... 543 7 154 160 378 270 54 15 4 182 1943—June 761 9 190 167 529 334 66 15 7 212 December... 788 11 188 181 557 354 65 14 5 198 1944—June 887 5 253 196 619 424 95 15 11 216 December... 1,041 7 260 209 726 472 96 18 8 227 1945—February. . . e73O e540 March 31,'034 3722 3553 April 31,065 3701 3575 May. 31,094 3742 3583 June 1,223 11 333 220 853 549 121 14 13 264 July 31,141 3824 3580 August 31,100 3758 3573 September. . 31,084 3762 3594 October 31,063 3743 3632 November. . 31,095 3711 3639 December .. 1,138 12 413 313 795 654 112 29 13 302 1946—January,... 31,168 s 734 3 727 * Estimated. Complete reports now collected semiannually; monthly figures for three items estimated on basis of reports from a small number of large firms. 1 Excluding balances with reporting firms (1) of member firms of New York Stock Exchange and other national securities exchanges and (2) of firms' own partners. 2 Includes money borrowed from banks and also from other lenders (not including member firms of national securities exchanges). 8 As reported to the New York Stock Exchange. According to these reports, the part of total customers' debit balances represented by balances secured by U. S. Government securities was (in millions of dollars): November, 181; December, 196; January, 193. NOTE.—For explanation of these figures see "Statistics on Margin Accounts" in BULLETIN for September 1936. The article describes the method by which the figures are derived and reported, distinguishes the table from a "statement of financial condition," and explains that the last column is not to be taken as representing the actual net capital of the reporting firms. Back figures.—See Banking and Monetary Statistics, Table 143, pp. 501-502, for monthly figures prior to 1942, and Table 144, p. 503, for data in detail at semiannual dates prior to 1942. 312 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 U.S. Government [Per cent per annum] Stock security yields mo Y w n e e t a e h r k , , or m m 4 p P - c o e a r o t r n p i m o m c t e - h i r e 6 a , s - l 1 a a P b d c n e r a c a 9 r i c n e y s m 0 e ' k p s s e - 1 t , - ch n l c a e o r a e x a e l a w n s - - l n 2 l g - e m b o i 3 ll n - s t * h 9 d c m - o c e e t f a o r o b t t n t i i e e f n t 1 s i h d - 2 - - - 3 t - n a y x o t e o a t a e b r s 5 l - e 1937 average1. . . 19 T 2 o . c 5 t i a t 9 i l es Y N C 1. o i e 7 t r w 3 y k E e 7 N r c a 2 n O o i s . t r 8 t i t a t e e h 8 h n s r e - n d r 1 W e 1 r c 3 n e S i . t s 2 o i t a 5 e e u n s r t d n hness 1938 average1. .. 2.53 1.69 2.75 3.26 1943 average .69 .44 1.00 .373 .75 1.34 1939 average.... 2.78 2.07 2.87 3.51 1944 average 73 44 1.00 375 79 1.33 1940 average 2.63 2.04 3.38 1945 average .75 .44 1.00 .375 .81 1.18 1941 average.... 2.54 1.97 3.19 1942 average 2.61 2.07 3.26 1945—February. . .75 .44 1.00 .375 .77 1.22 1943 average.... 2.72 2.30 3.13 March .75 .44 1.00 .375 .78 1.18 1944 average. . . . 2.59 2.11 3.02 April .75 .44 1.00 .375 .77 1.14 1945 average.... 2.39 1.99 2.51 2.73 May .75 .44 1.00 .375 .80 1.16 June .75 .44 1.00 .375 .81 1.16 1941—June 2.55 1.95 2.58 3.23 July 75 44 1.00 .375 .80 1 16 September 2.60 1.98 2.62 3.29 August.... .75 .44 1.00 .375 .82 1.17 December. 2.41 1.88 2.45 2.99 September. .75 .44 1.00 .375 .84 U.19 October. . . .75 .44 1.00 .375 .83 1.17 1942—March 2.48 1.85 2.48 3.20 November. .75 .44 1.00 .375 .84 1.14 June 2.62 2.07 2.56 3.34 December.. .75 .44 1.00 .375 .84 U.15 September 2.70 2.28 2.66 3.25 December. 2.63 2.09 2.63 3.26 1946—January.. . .75 .44 1.00 .375 .79 1.10 February . . .75 .44 1.00 .375 .76 1.03 1943—March. . . 2.76 2.36 2.76 3.24 June..... 3.00 2.70 2.98 3.38 Week ending: September 2.48 2.05 2.71 2.73 J F F F a e e e b b b n . . . .2 1 6 2 9 6 . . . . . . . . 1/€ V V 7 V /i« i l i e 6 e 1 1 1 1 . . . . 0 0 0 0 0 0 0 0 . . . . 3 3 3 3 7 7 7 7 5 5 5 5 . . . .7 7 7 7 6 7 7 8 1 1 1 1 . . . . 0 0 0 0 7 4 6 6 1944— J D M u e n a c e r e c m h b .. e . r . . 2 2 2 . . . 6 6 6 5 3 3 2 2 2 . . . 1 2 1 0 3 0 2 2 2 . . . 7 7 5 6 5 5 3 3 3 . . . 1 1 1 7 2 8 Feb.23.... Vie 1.00 .375 .75 1.00 S D e e p c t e e m m b b e e r r . 2 2 . . 3 6 9 9 2 1. . 9 1 3 8 2 2 . .8 6 2 1 3 2 . . 1 6 4 5 1 Monthly figures are averages of weekly prevailing rates. 2 The average rate on 90-day stock exchange time loans was 1.25 per 1945—March 2.53 1.99 2.73 2.91 cent during the entire period. June 2.50 2.20 2.55 2.80 3 Rate on new issues offered within period. September 2.45 2.05 2.53 2.81 * From Sept. 15 to Dec. 15, 1945, included Treasury notes of Sept. December. 2.09 1.71 2.23 2.38 15, 1948 and Treasury bonds of Dec. 15, 1950; beginning Dec. 15, 1945, includes only Treasury bonds of Dec. 15, 1950. 1 Prior to March 1939 figures were reported monthly on a basis not Back figures.—See Banking and Monetary Statistics, Tables 120-121, strictly comparable with the current quarterly series. pp. 448-459, and the BULLETIN for May 1945, pp. 483-490. Back figures—See Banking and Monetary Statistics, Tables 124-125 pp. 463-464; for description, see pp. 426-427. BOND YIELDS 1 [Per cent per annum] U. S. Government Corporate (Moody's)4 7 to 9 15 years and Munic- Corpo- Year, month, years over ipal rate By ratings By groups or week g ( r h a i d g e h ) - 2 g ( r h a i d g e h ) - 3 Total Tax- Partial- Tax- Indus- Rail- Public able ly tax able Aaa Aa A Baa trial road utility exempt Number of issues. 1-5 1-5 1-9 15 5 120 30 30 30 30 40 40 40 1943 average 1.96 1.98 2.47 2.06 2.64 3.16 2.73 2.86 3.13 3.91 2.85 3.64 2.99 1944 average.... 1.94 L.92 2.48 L.86 2.60 3.05 2.72 2.81 3.06 3.61 2.80 3.39 2.97 1945 average. . . . 1.60 L.66 2.37 L.67 2.54 2.87 2.62 2.71 2.87 3.29 2.68 3.06 2.89 1945—February . 1.77 1.75 2.38 L.71 2.56 2.93 2.65 2.73 2.94 3.41 2.69 3.16 2.95 March. .. . 1.70 L.70 2.40 L.61 2.51 2.91 2.62 2.72 2.92 3.38 2.68 3.11 2.94 April 1.62 L.68 2.39 L.57 2.49 2.90 2.61 2.73 2.90 3.36 2.69 3.07 2.94 May 1.57 L.68 2.39 1.58 2.53 2.89 2.62 2.72 2.88 3.32 2.68 3.05 2.93 June 1.56 L.63 2.35 L.58 2.54 2.87 2.61 2.69 2.86 3.29 2.68 3.03 2.89 July 1.58 L.63 2.34 L.57 2.53 2.85 2.60 2.68 2.85 3.26 2.68 3.00 2.87 August. . . 1.59 1.68 2.36 L.70 2.56 2.86 2.61 2.70 2.85 3.26 2.68 3.02 2.86 September. 1.56 L.68 2.37 L.79 2.56 2.85 2.62 2.70 2.85 3.24 2.67 3.05 2.85 October.. . 1.50 L.62 2.35 1.76 2.54 2.84 2.62 2.70 2.84 3.20 2.65 3.03 2.84 November. 1.42 L.56 2.33 1.70 2.54 2.82 2.62 2.68 2.81 3.15 2.64 2.99 2.81 December. 51.38 1.51 2.33 1.64 2.54 2.80 2.61 2.68 2.79 3.10 2.64 2.96 2.79 1946—January.. 1.31 (6) 2.21 1.57 2.43 2.73 2.54 2.62 2.73 3.01 2.57 2.89 2.71 February . 1.28 (6) 2.12 1.49 2.36 2.68 2.48 2.56 2.70 2.95 2.54 2.83 2.65 Week ending: Jan.26. .. 1.30 (6) 2.18 1.53 2.39 2.71 2.52 2.60 2.71 3.00 2.56 2.88 2.69 Feb. 2... 1.30 (6) 2.17 1.52 2.37 2.69 2.50 2.59 2.70 2.98 2.55 2.86 2.68 Feb. 9... 1.28 (6) 2.14 1.49 2.37 2.68 2.49 2.57 2.70 2.96 2.54 2.84 2.67 Feb. 16... 1.27 (6) 2.10 1.48 2.36 2.67 2.48 2.56 2.69 2.94 2.54 2.82 2.65 Feb.23... 1.28 2.10 1.49 2.36 2.67 2.48 2.56 2.69 2.94 2.54 2.82 2.64 <•) 1 Monthly and weekly data are averages of daily figures, except for municipal bonds, which are based on Wednesday figures. 2 Standard and Poor's Corporation. 3 u. S. Treasury Department. 4 Moody's Investors Service, week ending Friday. Because of limited number of suitable issues, the industrial Aaa, Aa, and A groups have been reduced from 10 to 3, 6, and 9 issues, respectively, and the railroad Aaa, Aa, and A groups from 10 to 7, 6, and 9 issues, respectively 6 Beginning Dec. 15, 1945, includes Treasury bonds of June 1952-54, June 1952-55, December 1952-54, and March 1956-58. 8 No partially tax-exempt bonds due or callable in 15 years and over. Back figures.—See Banking and Monetary Statistics, Tables 128-129, pp. 468-474, and the BULLETIN for May 1945, pp. 483-490. 313 MARCH 1946 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SECURITY MARKETS 1 Bond prices Stock prices5 Corporate4 Common (index, 1935-39=100) V of o l t u ra m d e - Year, month, or week m U G e e r o . n n S v - t . - 2 g M ( r i h a p u i d a g n e l h i ) c - 3 - H gr i a g d h e - Tot M al ediu In t m r d i - u a l s a - nd l R r o o a w a i d l e - r-gra u P d t u i e b li l t i y c fau D lt e e - d fer P r r e e d - 6 Total In tr d ia u l s- R ro a a i d l- u P t u i b li l t i y c s i s a n t h n h g a d o 7 r s e u ( i s - o n ) f Number of issues. 1-9 15 15 50 10 20 20 15 15 402 20 28 1943 average. . . . 100.50 131.8 120.3 109.5 117.0 97.6 114.0 44.0 172.7 92 94 89 82 1,032 1944 average.... 100.25 135.7 120.9 114.7 120.5 107.3 116.3 59.2 175.7 100 102 101 90 971 1945 average. . . . 102.04 139.6 122.1 117.9 122.2 115.1 116.3 75.4 189.1 122 123 137 106 1,443 1945—February. . 101.81 138.7 117.6 121.9 114.3 116.5 68.1 185.5 113 115 125 97 1,664 March.... 101.56 140.7 122.7 118.1 122.9 114.8 116.5 68.9 187.7 112 114 124 96 1,195 April 101.68 141.6 122.9 118.2 123.1 115.0 116.5 71.9 190.9 114 117 129 98 1,273 May 101.74 141.3 122.3 117.9 122.1 115.0 116.5 77.5 191.2 118 120 135 101 1,357 June 102.38 141.5 122.1 118.1 122.2 115.5 116.7 81.4 190.9 121 122 144 106 1.S28 July 102.46 141.6 122.3 117.9 122.2 115.2 116.4 80.4 189.6 118 119 140 108 951 August 102.22 138.8 121.7 117.2 121.7 114.4 115.5 75.6 188.1 118 119 131 107 1,034 September. 102.02 137.0 121.6 117.1 121.4 114.4 115.6 74.5 186.7 126 128 138 111 1,220 October. . . 102.38 137.7 121.9 117.7 122.0 115.3 115.7 76.6 188.0 132 135 145 114 1,556 November. 102.60 139.0 122.0 118.3 122.5 116.6 116.0 78.9 192.2 137 139 154 121 1,961 December. 102.68 140.1 121.9 119.0 123.1 117.5 116.2 82.1 195.3 140 142 157 120 1,626 1946—January... 104.59 141.6 123.8 119.7 123.9 118.9 116.3 84.9 197.9 145 148 164 124 2,183 February. . 106.03 143.4 124.5 120.0 124.4 119.6 116.1 85.4 200.5 143 146 160 124 1,776 Week ending: Jan. 26 105.01 142.4 124.3 120.0 124.2 119.1 116.6 85.4 198.9 145 148 166 125 1,878 Feb. 2 105.22 142.6 124.4 120.1 124.6 119.3 116.4 87.1 199.4 149 151 168 127 2,393 Feb. 9.... 105.74 143.3 124.6 120.0 124.3 119.7 116.1 87.0 199.4 149 152 169 127 1,621 Feb.16 106.33 143.5 124.5 120.0 124.4 119.7 115.8 85.7 200.0 145 147 162 124 1,723 Feb.23 106.31 143.3 124.5 120.1 124.4 119.6 116.1 84.6 201.2 141 143 154- 122 1,900 1 Monthly and weekly data are averages of daily figures, except for municipal bonds and for stocks, which are based on Wednesday figures. 2 Average of taxable bonds due or callable in 15 years and over. 3 Prices derived from average yields, as computed by Standard and Poor's Corporation, on basis of a 4 per cent 20-year bond. 4 Prices derived from averages of median yields, as computed by Standard and Poor's Corporation. 6 Standard and Poor's Corporation. 6 Prices derived from averages of median yields on noncallable high-grade stocks on basis of a $7 annual dividend. 7 Average daily volume of trading in stocks on the New York Stock Exchange. Baac k figures.—See fBigaanking and Monetary Statistics, Tables 130, 133, 134, and 136, pp. 475, 479, 482, and 486. respectively, and the BULLETIN for MM ay 11994455, pp. 448833-449900. NEW SECURITY ISSUES [In millions of dollars] For new capital For refunding Total Domestic Domestic Year or month f ( i u a n r n n n e e g d d - w ) - m T e ( a e i f o d g n o s t o n d r t a i - - ) c l Total S n m a p t i n a a c u d t l i - e - a F c e g i e r e e a d s n l - 1 - Total Co B n r a p o o n o t n d e r d s a s te Stocks e F i o g r n - 2 m T e a ( e i f o d g n o s o t n d r t a i - - ) c l Total S n m a p t i n a c a u d t i l - e - a c F e g i r e e e a d s n l ^ - - Total Co B n r a p o o n o n t d e d r s a s te Stocks e F i o g r n - - 1936 6,214 1,972 1,949 735 22 1,192 839 352 23 4,242 4,123 382 353 3,387 3,18*7 200 119 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 5,546 2,854 2,852 518 1,272 1,062 889 173 1 2,693 2,689 435 698 1,557 1,430 126 4 1942 2,114 1,075 1,075 342 108 624 506 118 1,039 1,039 181 440 418 407 11 1943 2,174 642 640 176 90 374 282 92 2 1,532 1,442 259 497 685 603 82 90 1944 '4,216 '913 '896 235 '15 '646 '422 '224 17 '3,303 '3,288 404 '418 '2,466 '2,178 288 15 1945 '•7,956 '1,762 '1,752 471 26 '1,255 '602 '654 '10 '6,194 '6,146 324 912 '4,911 '4,256 '655 48 1945—January. . '641 '144 '144 99 2 '44 '19 25 '497 '497 23 195 '279 '246 33 February. '222 '44 '44 6 9 '29 '24 5 178 163 8 18 '137 '137 "l5 March.. . . '563 '92 '92 24 '68 '33 35 471 471 150 25 296 265 ' "3i" April '759 128 126 19 ""V 101 50 51 ""2 '631 '631 30 46 '555 '530 25 May »"584 '187 '186 28 '158 '103 55 1 397 395 9 19 367 272 95 " 2 June '169 52 52 43 1 1 '117 '117 8 30 '79 '79 July 1,229 249 249 35 2 212 34 178 981 981 31 200 750 623 127 August. . . '510 i*4 144 37 107 64 43 '366 '366 7 20 '338 '297 41 September. '879 '142 '142 37 '105 35 '70 '737 '732 9 17 '705 '645 60 ' 5 October.. . 1,338 '243 '238 29 209 103 106 5 1,096 1,070 38 42 989 820 169 26 November. 223 '94 '94 '34 60 28 31 129 129 7 44 78 60 18 December. '838 '243 241 80 161 107 54 " '3 594 594 3 255 337 282 55 1946—January... 346 200 200 68 1 131 10 122 146 146 3 30 113 55 58 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 Banking and Monetary Statistics, Table 137, p. 487. 314 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NEW CORPORATE SECURITY ISSUES 1 PROPOSED USES OF PROCEEDS, ALL ISSUERS [In millions of dollars] Proposed uses of net proceeds Estimated Estimated - Year or month pro g c ro e s e s ds2 pro n ce e e t ds3 ! N P e l w an t m a o n n d ey Working Retirem B e o n n t d o s f a n se d c j ur P it r i e es ferred _j R ot e h p e a r o y f d m e e b n t t! pu O r t p h o e s r es Total equipment capital Total notes I stock 1935 2,332 2,266 208 111 96 1,865 1,794 71 170 23 1936 4,572 4.431 858 380 47S 3,368 3,143 226 154 49 1937 2,310 2.239 991 574 417 1,100 911 190 111 36 1938 2,155 2,110 681 504 177 1,206 1,119 87 215 7 1939 2,164 2,115 325 170 155 1,695 1,637 59 69 26 1940 2,677 2,615 569 424 145 1,854 1,726 128 174 19 1941 2,667 2,623 868 661 207 1.583 1,483 100 144 28 1942 1,062 1,043 474 287 187 396 366 30 138 35 1943 1,170 1,147 308 141 167 739 667 72 73 27 1944 3,202 3.142 657 252 405 2,389 2,038 351 49 47 1945 5,800 5.691 996 581 415 4,447 4,017 430 124 124 1944—July 210 206 63 37 26 131 107 24 August. . . 219 215 61 27 34 151 149 2 September 463 453 29 18 11 415 375 40 October... 742 729 125 10 115 594 570 24 November 380 373 33 17 17 338 224 115 December. 182 178 66 9 57 109 106 3 1945—January.. 281 275 35 14 21 240 221 19 February. 215 212 28 16 12 177 160 17 5 March 226 221 48 28 19 171 158 13 1 April 643 632 102 55 47 513 501 12 14 3 xMay 496 485 136 49 88 331 278 53 12 6 June 92 91 5 3 79 72 7 1 6 July 944 925 190 147 43 719 581 138 5 11 August. . . 440 433 80 41 39 297 278 19 50 6 September 795 780 99 50 49 668 634 35 1 12 October... 1,077 1,057 150 97 53 854 798 56 19 34 November 121 117 20 7 13 70 51 19 4 December 470 462 103 75 27 327 286 41 121 1946—January.. 253 245 111 63 40 118 56 62 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 c p e r e o d - s money se ti c e u s ri- p p o u se r- s1 c p e r e o d - s money se t c ie u s ri- p p o u se r- s4 c p e r e o d - s money se t c ie u s ri- p p o u se r- s4 c p e r e o d - s money se t c ie u s ri- p p o u s r e - s4 1935 120 57 54 10 1,250 30 1,190 30 774 74 550 150 122 46 72 4 1936 774 139 558 1.987 63 1,897 27 .280 439 761 80 390 218 152 20 1937 338 228 110 751 89 611 50 1,079 616 373 90 71 57 7 7 1938 54 24 30 1,208 180 943 86 831 469 226 136 16 8 7 1 1939 182 85 97 1,246 43 1.157 47 584 188 353 43 102 9 88 5 1940 319 115 186 18 1.180 245 922 13 961 167 738 56 155 42 9 104 1941 361 253 108 1,340 317 993 30 828 244 463 121 94 55 18 21 1942 47 32 15 464 145 292 27 527 293 89 146 4 4 1943 160 46 114 469 22 423 25 497 228 199 71 21 13 4 4 1944 602 102 500 1.400 40 1.343 17 1,033 454 504 76 107 61 42 3 1945 1,436 115 1,320 2,196 61 2,083 51 1,865 732 984 149 194 60 47 1944—July 21 21 62 5 56 1 121 37 74 1 1 August 134 19 115 31 3 26 2 47 36 10 3 1 September.. 189 10 179 167 5 155 6 91 12 77 6 4 October. . .. 36 2 35 499 9 485 5 191 115 74 3 November. 52 4 48 272 7 265 47 22 23 2 December. 82 82 21 20 34 24 7 42 1945—January 119 119 65 65 82 28 54 1C February.. 108 96 60 60 27 9 16 18 March.... 124 122 93 41 50 4 April 360 346 139 127 118 64 38 15 1 May 75 57 184 183 223 117 89 2 2 June 30 30 59 3 49 2 July 105 93 301 297 480 163 301 40 29 August 84 74 115 110 221 63 111 47 13 2 5 September. 270 266 371 364 130 87 38 6 10 1 October. . . 246 219 565 523 218 89 107 23 27 "s 4 November. 42 35 4-9 17 26 6 27 10 15 December. 68 50 200 169 166 51 106 9 27 3 15 1946—January... 7 43 43 181 98 15 13 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. 8 Estimated net proceeds are equal to estimated gross proceeds less cost of flotation, i.e., compensation to underwriters, agents, etc., and exppeennsseess. « Includes repayment of other debt and other purposes. Source.—Securities and Exchange Commission; for compilation of back figures, see Banking and Monetary Statistics (Table 138, p. 491), a publication of the Board of Governors. MARCH 1946 315 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 d Year or quarter Total s I a t r n e o d e n l c M e h r i a y n - - to b A i m l u e o - s - e p O t m r q t o a i t u e r o h n t i n n e a s p t r - - - f m p e N u a r r e c o n r o t o t d n a d s u l - - s s O g d o u b t o h l r e a d e - s r t F b o a o e a b g v o n a e e d d c s r s , c - , o p r r a e i o O i n n f n d i i g g d n l u - c- c In h t c r e d a i m u a ls l s i - - O g d n o u b t o o h l r n e a d e - - s r n c s M i e e e c l o i r e l s v u a s - - - s pr N of e i t ts1 fe P D r r r e i e - v d ide C n m o d o m s 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 2,163 325 193 274 227 153 113 159 174 207 187 152 1 137 92 705 1942 1,769 226 159 209 182 138 90 151 152 164 136 161 888 88 552 1943 . 1.800 204 165 201 180 128 83 162 186 170 149 171 902 86 556 1944 1,896 194 174 222 190 115 88 175 220 187 147 184 970 86 611 Quarterly 1941—i 509 86 44 79 53 39 23 36 29 49 44 28 285 22 150 2 547 84 48 73 56 36 28 43 42 53 48 33 295 23 165 3 558 81 46 60 56 38 30 44 56 52 49 44 282 23 170 4 549 72 55 61 62 40 32 37 46 52 46 47 275 24 221 1942—j 413 52 38 46 2 46 36 19 32 35 39 39 31 205 21 134 2 358 52 35 25 2 43 32 18 32 27 35 27 32 174 23 135 3 445 51 36 46 2 43 34 22 42 42 41 35 52 213 20 125 4% 553 72 49 92 2 50 36 30 44 49 48 35 46 296 23 158 1943—i 430 52 39 47 248 34 19 39 36 41 36 39 209 21 127 2 433 47 41 50 246 32 22 37 42 41 36 38 221 22 132 3 . .. 461 51 41 52 246 31 20 43 49 40 39 50 226 21 127 4 477 53 45 53 2 41 31 23 43 58 47 38 44 246 22 170 1944—i 444 47 40 52 2 52 29 20 38 49 42 36 39 224 21 142 2 . . .. 459 46 40 55 2 47 30 22 43 52 43 37 43 210 22 149 3 475 47 38 55 247 28 21 45 56 49 37 52 244 20 137 4 . . .. 518 55 55 59 2 43 28 25 49 64 53 37 50 272 23 184 1945—i 3 492 49 38 3 63 2 50 31 21 45 62 48 39 45 3 250 20 142 2 3 508 53 42 a 77 2 47 27 21 46 64 45 38 47 '269 22 145 3 427 38 35 45 2 34 23 19 46 61 43 36 49 223 21 143 PUBLIC UTILITY CORPORATIONS [In millions of dollars] Railroad4 Electric power5 Telephone6 Year or quarter r O e p v in e e r g n a u t e - I i b n n t e c c a f o o o x m m r ' e e e inc N o e m t e1 d D e i n v d i- s r O e p v i e n e r g n a u t e - I i b n n e t c c a f o o x o m m * re e e inc N o e m t e1 d D e i n v d i- s r O e p v i e n e r g n a u t e - I i b n n e t c c a f o o x o m m * re e e inc N o e m t e1 d D e i n v d i- s 1939 3,995 126 93 126 2,647 629 535 444 1,067 227 191 175 1940 4,297 249 189 159 2,797 692 548 447 1,129 248 194 178 1941 5,347 674 500 186 3,029 774 527 437 1,235 271 178 172 1942 7,466 1,658 902 202 3,216 847 490 408 1,362 302 163 163 1943 9,055 2,211 873 217 3,464 914 502 410 1,537 374 180 168 1944 .. 9,437 1,971 668 246 3,618 915 499 390 1,641 399 174 168 Quarterly 1941—i , . . 1,152 96 69 28 751 209 154 295 67 43 44 2 1,272 145 103 36 723 182 126 (8) 308 69 44 45 3 .... 1,468 267 189 34 750 183 107 311 66 45 44 4 1.454 166 138 87 805 200 139 321 68 46 40 1942—1 1,483 178 90 24 816 234 131 98 324 72 41 44 2 1,797 390 198 46 770 196 104 96 337 75 41 42 3 2,047 556 286 30 792 195 105 84 342 72 39 39 4 ... 2,139 534 327 101 839 222 150 131 359 83 43 38 1943—i 2,091 515 214 29 864 254 136 99 366 88 42 40 2 2,255 608 244 52 835 221 118 100 382 96 44 42 3 2,368 653 250 36 859 210 114 99 391 94 45 43 4 2,340 435 166 100 906 228 133 113 398 96 48 43 1944—i 2,273 458 148 31 925 262 135 94 400 97 42 42 2 2,363 511 174 55 886 241 123 102 406 101 43 42 3 2,445 550 180 30 878 207 111 94 409 98 43 42 4 2,356 452 165 130 929 205 130 101 426 104 46 43 1945—i 2,277 425 139 30 971 292 139 102 436 115 46 41 2 2,422 504 187 72 909 233 123 96 444 109 45 44 3 2,231 229 125 29 887 211 116 92 449 103 44 43 1 "Net profits" and "net income" refer to income after all charges and taxes and before dividends. 2 Partly estimated. 3 Revised net profits figures for the first six months of 1945, published by General Motors Corp., have been allocated by quarters as follows: 1st, 49 million dollars; 2nd, 62 million. * Class I line-haul railroads, covering about 95 per cent of all railroad operations. 6 Class A and B electric utilities, covering about 95 per cent of all electric power operations. Figures include affiliated nonelectric operations. 6 Thirty large companies, covering about 85 per cent of all telephone operations. Series excludes American Telephone and Telegraph Company, the greater part of whose income consists of dividends received on stock holdings in the 30 companies. 7 After all charges and taxes except Federal income and excess profits taxes. 8 Not available. Sources.—Interstate Commerce Commission for railroads; Federal Power Commission for electric utilities (nonelectric operations and quarterly figures prior to 1942 are partly estimated); Federal Communications Commission for telephone companies (except dividends); published reports for industrial companies and for telephone dividends. Figures for the current and preceding year subject to revision, especially for war producers whose contracts are under renegotiation. For description of data and back figures, see pp. 214-217 of the March 1942 BULLETIN. 316 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

UNITED STATES GOVERNMENT DEBT—VOLUME AND KIND OF SECURITIES [On basis of daily statements of United States Treasury. In millions of dollars] Marketable public issues1 Nonmarketable public issues Fully End of month d T g d i r o e r o e t b s a c t s l t b in d T e d t i a o e r e r e t r b i a e c n t l t s g t- TotaP Tre b a il s ls ury c i C e n a d e t d r e n e t s e i b f s o i t s - - f Tr n e o a t s e u s ry Tr b e o a n s d u s ry Total2 s b a U o v . n i n d S g s . s T t s a r a n e x v o a i t s a n e u n g s r d s y 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- s g t b e t e c u e e e u a a r d e r r r i i a s t n i t n i n - g e - - s 1942—Dec 108,170 107,308 76,488 6,627 10,534 9,863 49,268 21,788. 15,050 6,384 9,032 862 4,283 1943—June 136 ,696 135,380 95,310 11,864 16,561 9,168 57,520 29,200 21,256 7,495 10,871 L,316 4,092 1944— D J e u c ne.... 2 1 0 6 1 5, , 8 0 7 0 7 3 1 1 6 9 4 9 , , 5 5 0 4 8 3 1 1 1 4 5 0 , , 2 4 3 0 0 1 1 1 3 4 , , 0 7 7 3 2 4 2 2 2 8 , ,8 8 2 4 2 3 1 1 1 7 , , 1 4 7 0 5 5 6 7 7 9 , , 9 2 4 4 4 4 3 4 6 4 , , 5 85 7 5 4 V 3 2 4 7 , , 6 3 0 6 6 3 9 8 , , 5 5 5 8 7 6 1 1 2 4 , , 7 2 0 8 3 7 L 1, , 4 37 6 O 0 4 1 , ,5 2 1 2 6 5 Dec 230,630 228,891 161,648 16,428 30,401 23,039 91,585 50,917 40,361 9,843 16,326 1,739 1,470 1945—Feb. .... 233,707 231,854 162,379 16,399 30,396 23,039 92,349 52,345 41,698 9,927 17,130 1,853 1,114 Mar 233,950 232,026 162,625 16,921 34,544 18,588 92,377 51,833 42,159 8,948 17,567 1,923 1,119 Apr 235,069 233,063 162,680 17,041 34,478 18,588 92,377 52,460 42,626 9,109 17,923 2,006 1,132 May 238,832 235,761 162,652 17,049 34,442 18,588 92,377 54,517 43,767 10,031 18,592 5,071 1,151 June.... 258,682 256,357 181,319 17,041 34,136 23,497 106,448 56,226 45,586 10,136 18,812 2,326 409 July 262,045 259,781 183,080 17,025 34,472 23,498 107,890 57,143 46,508 10,119 19,558 2,264 484 Aug 263,001 260,746 183,334 17,038 34,430 23,498 108,172 57,379 46,715 10,148 20,033 2,255 515 Sept 262,020 259,630 182,833 17,018 35,072 23,498 107,049 56,278 46,741 9,021 20,519 2,391 527 Oct 261,817 259,439 182,790 17,026 35,021 23,498 107,049 56,072 46,786 8,776 20,577 2,378 541 Nov 265,342 262,849 185,112 17,026 35,021 23,498 109,371 57,028 47,473 9,058 20,710 2,492 536 Dec, , 278,115 275,694 198,778 17,037 38,155 22,967 120,423 56,915 48,183 8,235 20,000 2,421 553 1946—Jan 278,887 277,456 199,633 17,042 41,502 19,551 121,358 57,168 48,588 8,107 20,655 1,431 545 Feb 279,214 277,912 199,810 17,032 41,413 19,551 121,635 57,206 48,692 8,043 20,897 1,301 539 1 Including amounts held by Government agencies and trust funds, which aggregated 7,006 million dollars on Jan. 31, 1946. 2 Total marketable public issues includes Postal Savings and prewar bonds, and total nonmarketable public issues includes adjusted service and depositary bonds not shown separately. 3 Including prepayments amounting to 947 million dollars on securities dated June 1, 1945, sold in the Seventh War Loan, beginning on May 14, 1945. 4 Including prepayments amounting to 54 million dollars on securities dated Nov. 15, 1945, and Dec. 3, 1945, sold in the Victory Loan, beginning on Oct. 29, 1945. 5 Including prepayments amounting to 192 million dollars on securities dated Dec. 3, 1945, sold in the Victory Loan, beginning on Oct. 29, 1945 . Back figures.—See Banking and Monetary Statistics, Tables 146-148, pp. 509-512. UNITED STATES GOVERNMENT MARKETABLE PUBLIC UNITED STATES SAVINGS BONDS SECURITIES OUTSTANDING, FEBRUARY 28, 1946 [In millions of dollars] [On basis of daily statements of United States Treasury. In millions of dollarsl Redempiue and coupon rate Amount Issue and coupon rate Amount Month Am ou o t u - nt Funds received fro in m sales during m ti a o t n u s r i a t n ie d s standing Treasury bills1 Treasury bonds—Cont. at end of Mar. 7, 1946 1,303 Sept. 15, 1949-51 2 1,292 month All Series Series Series All Mar. 14, 1946 1,302 Dec. 15, 1949-51 2 2,098 series E F G series Mar. 21, 1946 , 1,317 Dec. 15, 1949-52... 3 H 491 A M p a r r . . 28 4 , , 1 1 9 9 4 4 6 6 1 1 , , 3 3 0 0 4 3 D M e a c r . . 1 1 5 5 , , 1 1 9 9 5 4 0 9 - - 5 5 2 3 ... 2K 2 1 1 , , 7 9 8 6 6 3 1944—Aug.... 36,883 602 499 18 85 279 Apr. 11, 1946 1,316 Sept. 15, 1950-52... 2K 1,186 Sept.... 37,323 692 591 16 85 283 Apr. 18, 1946 1,312 Sept. 15, 1950-52 2 4,939 Oct.. . . 37,645 695 599 14 83 401 Apr. 25, 1946 1,317 Dec 15, 1950 IK 2,635 Nov.... 38,308 1,023 807 43 174 382 .May 2, 1946 1,316 June 15, 1951-54... 2K 1,627 Dec. . . 40,361 2,386. 1,855 125 406 365 M M a a y y 1 9 6 , , 1 1 9 9 4 4 6 6 1 1 , , 3 3 1 0 5 9 S S e e p p t t . . 1 1 5 5 , , 1 1 9 9 5 51 1 - - 5 5 5 3 2 3 7,9 75 8 5 6 1945—Jan 41,140 1,074 804 42 228 341 May 23, 1946 1,301 Dec. 15, 1951-53.. .2% 1,118 Feb.. . . 41,698 848 653 31 164 323 C A M M e p r a a t r y r , . . o 3 f 1 1 1 , , , i 1 1 n 1 9 9 9 d 4 4 4 e 6 6 6 b tednes V s % s 4 4 1 , , , 1 8 31 4 1 7 7 1 M J D J D u u e e a n n c c r e e . . 1 1 1 1 1 5 5 5 5 5 , , , , , 1 1 1 1 1 9 9 9 9 9 5 5 5 5 5 2 1 2 2 2 - - - - - 5 5 5 5 5 5 4 4 4 5 . . . . . . 2 2 K K 2 2 2 5 8 1 1 , , , , 0 5 8 6 5 2 0 2 6 1 4 1 5 2 0 A J J M M u u p a n a l r y r y e .. . . . . . . . . . . . . . . . 4 4 4 4 4 3 2 2 5 6 , , , , , 7 1 6 5 5 6 5 2 8 0 7 9 6 6 8 2 1 1 , , , 2 5 1 8 8 9 4 7 8 3 5 0 8 9 8 1 1 1 , , , 1 0 4 6 7 9 3 6 8 1 5 2 8 4 2 1 2 6 2 4 7 7 3 3 7 8 2 5 1 2 1 8 3 5 1 3 2 2 1 5 0 4 4 4 4 4 2 6 0 0 2 6 4 4 3 8 May 1,1946 % 1,579 June 15, 1953-55 2 725 Aug 46,715 700 571 22 107 531 June 1,1946 % 4,799 June 15, 1954-56...2 yi 681 Sept.... 46,741 514 420 18 76 528 Aug. 1, 1946 J4 2,470 Mar. 15, 1955-60...2 % 2,611 Oct 46,786 625 510 8 107 616 Sept. 1, 1946 Vi 4,336 Mar. 15, 1956-58... 2K 1,449 Nov.... 47,473 1,184 865 54 265 533 Oct. 1,1946 Ji 3,440 Sept. 15, 1956-59... 2K 982 Dec. .. 48,183 1,254 908 83 262 559 Nov. 1, 1946 H 3,778 Sept. 15, 1956-59... 2% 3,823 1946—Jan.. .. 48,588 960 641 40 278 629 Dec. 1,1946 % 3,768 June 15, 1958-63... 2% 919 Feb.. . . 48,692 622 367 30 225 565 Tan. 1,1947 J4 3,330 June 15, 1959-62.. .2% 5,284 T F r e e b a . s ur 1 y , 1 n 9 o 4 t 7 e s Ji 4,954 D De e c c . 1 1 5 5 , , 1 1 9 9 5 6 9 0 - - 6 6 2 5 . . . . . . 2 2 K yi, 3 1, , 4 4 8 5 5 8 Maturities and amounts outstanding, February 28, 1946 Mar. 15, 1946 1,291 June 15, 1962-67... 2K 2,118 J M S S S D u e e e e a l p p p y c r t t t . . . . . 1 1 1 1 1 5 1 5 5 5 5 , , , , , , 1 1 1 1 1 1 9 9 9 9 9 9 4 4 4 4 4 4 7 7 7 8 6 6 4 3 3 2 1 1 , , , , , , 6 2 9 9 7 7 8 4 6 1 0 4 7 8 1 0 7 8 J J S D M M D u u e e e a a n n p c c r r e e . t . . . 1 1 1 1 1 1 1 5 5 5 5 5 5 5 , , , , , , , 1 1 1 1 1 1 1 9 9 9 9 9 9 9 6 6 6 6 6 6 6 6 4 4 3 7 5 7 - - - - - - - 7 6 6 6 7 7 7 1 9 9 8 0 2 2 . . . . . . . . . . . . . . . . . . . . . 2 2 2 2 2 2 2 x Y K K K H y /2 2 2 2 3 5 3 3 2 7 , , , , , , , 1 7 8 8 4 7 9 9 6 3 8 3 1 6 7 1 1 1 6 8 7 1 1 9 9 . 4 4 m Y 6 7 a e t a u r r o it f y .... se A r 4 i 2 l e l 2 9 s 2 4 S B e - 4 r 2 D i 2 9 e 2 4 s Se E ries Se F ries Se G ries Treasury bonds Dec. 15, 1967-72... 2K 11,668 1 1 9 9 4 4 8 9 4 8 9 0 6 2 4 8 9 0 6 2 Mar. 15, 1946-56.. 2489 1950 989 989 June 15, 1946-48 31,036 Postal Savings 1951 1,639 442 1,197 June 15, 1946-49.. 3819 bonds 2K 117 1952 4,841 4,841 Oct. 15, 1947-52.. 759 Conversion bonds.... 3 13 1953 8,861 7,473 ""213" 1,175 Dec. 15, 1947 701 Panama Canal loan.. 3 50 1954 11,894 9,016 584 2,293 Mar. 15, 1948-50 1,115 1955 10,843 7,766 659 2,417 J M u a n r e . 1 1 5 5 , , 1 1 9 9 4 4 8 8-51.. 3 1 , ,2 0 2 6 3 2 Total direct issues... 199,810 1 19 9 5 5 7 6 .... 3 4 , , 1 1 0 0 2 0 587 5 7 8 3 6 8 2 2, , 5 7 1 7 6 5 Sept. 15, 1948 451 Guaranteed securities 1958 512 60 452 Dec. 15, 1948-50 571 Federal Housing Adroin, Unclassified. . -104 June 15, 1949-51 1,014 Various 39 Total 48,692 3,446 30,881 2,841 11,628 1 Sold on discount basis. See table on Open-Market Money Rates, p. 313. 2 Called for redemption on Mar. 15, 1946. 8 Called for redemption on June 15, 1946. MARCH 1946 317 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OWNERSHIP OF UNITED STATES GOVERNMENT SECURITIES, DIRECT AND FULLY GUARANTEED [In millions of dollars] Privately held1 Held by U. S. Gov- End of month s i b e n T c e te u a o r r r t e i i a n t s i l g t e - s S i e s p a r s e n n u c m d e ia s e l t n ru t s a t g f e P u i n s u n s c b d u ie l s e i s s c R F B e H e a d b s e n e e y l r k r d v a s e l Total m b C e a o r n m c k ia s - l M s b av a u n i t n u k g a s s l p I c a n a o n s n m c u ie e r - - s M is a a O s b r u k t l h e e e s e t r - inve m s i N s t a a o s b r o u r k l n s e e e - s t- 1942—June 76,517 7,885 2,738 2,645 63,249 26,410 3,891 9,200 10,700 13,000 December 111,591 9,032 3,218 6,189 93,152 41,373 4,559 11,300 14,800 21,100 1943—June 139,472 10,871 3,451 7,202 117,948 52,458 5,290 13,100 18,700 28,400 December 168,732 12,703 4,242 11,543 140,244 59,842 6,090 15,100 23,700 35,500 1944—June 201,059 14,287' 4,810 14,901 167,061 68,431 7,306 17,300 30,700 43,300 December 230,361 16,326 5,348 18,846 189,841 77,558 8,328 19,600 35,200 49,200 1945—April 234,194 17,923 5,262 20,455 190,554 77,400 8,700 20,500 33,300 50,700 May 236,912 18,592 5,217 20,954 192,149 77,500 8,700 20,100 33,100 52,700 June 256,766 18,812 6,128 21,792 210,034 84,069 9,588 22,700 39,500 54,200 July.. 260,265 19,558 6,105 21,717 212,885 85,300 9,800 22,700 40,100 55,000 August 261,261 20,033 6,121 22,530 212,577 84,500 10,000 22,500 40,300 55,300 September 260,156 20,519 6,123 23,328 210,186 83,500 10,000 22,500 40,000 54,200 October 259,980 20,577 6,175 23,276 209,952 84,200 10,000 22,400 39,400 54,000 November 263,386 20,710 6,134 23,472 213,070 85,600 9,800 '22,300 '40,400 55,000 December 276,246 20,000 7,038 24,262 224,946 90,000 10,700 24,100 45,300 54,800 1 Figures for insurance companies and other investors have been rounded to nearest 100 million dollars for all dates, and figures for commercial banks and mutual savings banks have been rounded to nearest 100 million for all dates except June and December for which call report data are available. Back figures.—See Banking and Monetary Statistics, Table 149, p. 512. r Revised. SUMMARY DATA FROM TREASURY SURVEY OF OWNERSHIP OF SECURITIES ISSUED OR GUARANTEED BY THE UNITED STATES * [Public marketable securities. Par values in millions of dollars] U. S. U. S. Gov- Gov- Total m er e n n - t F e e ra d l - C m o e m r- - M tua u l - fnsur- Total m er e n n - t F e e ra d l - C m o e m r- - M tua u l - Insur- End of month out- agen- Re- cial sav- ance Other End of month out- agen- Re- cial sav- ance Other stand- cies serve banks ings com- stand- cies serve banks ings coming and Banks 0) banks panies ing and Banks C1) banks panies trust trust funds funds Total:2 Treasury bonds: 1944—Dec.. . 162,843 5,33818,84672,045 8,183 18,76139,670 Total: 1945—June.. 181,353 6,112 21,79277,484 9,38220,93045,652 1944—Dec.. . 91,585 5,173 1,24336,508 7,70417,85923,098 July. . 183,114 6,08321,71778,609 9,62121,14645,939 1945—June.. 106,448 5,968 1,113 41,795 9,04519,89228,636 Aug... 183,369 6,09222,53077,862 9,77521,27345,837 July.. 107,890 5,936 1,11342,822 9,27820,07928,661 Sept.. 182,870 6,09423,32876,939 9,84521,43745,227 Aug... 108,172 5,937 1,11443,170 9,36520,25128,334 Oct... 182,829 6,146 23,27677,547 9,84721,50144,512 Sept.. 107,049 5,926 977 42,834 9,36020,34827,604 Nov. . 185,151 6,10423,472 78,935 9,58721,37545,679 Oct... 107,049 5,926 977 43,477 9,36020,34326,964 Dec... 198,820 7,00924,26282,830 10,49123,18351,046 Nov. . 109,371 5,911 977 44,564 9,17620,19228,551 Dec... 120,423 6,915 947 46,535 10,21722,23033,579 Treasury bills: Maturing within 1944—Dec.. . 16,428 6 11,148 4,113 1 1 1,159 5 years: 1945—June.. 17,041 3 12,962 2,798 1 4 1,273 1944—Dec.. . 7,824 518 4,834 137 556 1,777 July.. 17,025 9 12,810 2,737 2 1 1,466 1945—June.. 8,939 547 5,770 172 375 2,074 Aug. 17,038 15 13,254 2,193 2 1,574 July. . 8,939 530 5,814 175 350 2,069 Sept 17,018 18 13,234 2,035 10 1,721 A.UK 8 939 532 5,803 183 352 2 068 Oct.! . 17,026 21 13,172 1,978 6 1,850 S*e•"p&•t •. .• 7,725 381 5,126 181 320 1,714 Nov. . 17,026 18 12,593 2,306 14 i 2,094 Oct... 7,725 379 5,177 184 304 1,681 Dec.. 17,037 5 12,831 2,476 1 1,723 Nov. 8 214 456 5,387 173 277 1 917 Dec.. 10,879 481 7,282 161 257 2,697 Certificates: Maturing in 5-10 1944—Dec.. . 30,401 62 4,88715,032 136 310 9,974 years: 1945—June.. 34,136 47 6,032 16,789 92 420 10,756 1944—Dec.. . 44,087 ,504 24,445 3,556 4,23010,357 July. . 34 ,'472 45 6,09616,812 96 454 10,968 1945—June.. 48,155 L.333 29,147 3,400 4,267 10,009 Aug... 34,430 46 6,40016,413 158 423 10,991 July. . 48,423 L.322 29,954 3,228 4,194 9,725 Sept.. 35,072 55 7,18416,209 211 494 10,918 Aug... 48,425 1,319 30,209 3,101 4,163 9,631 Oct.. . 35,021 77 7,20616,230 221 553 10,735 Sept.. 49,180 L.398 30,798 3,056 4,179 9,749 Nov. . 35,021 62 7,80016,358 171 561 10,070 Oct... 49,180 ,396 31,241 2,970 4,066 9,506 Dec... 38,155 38 8,36418,091 91 360 11,211 Nov. . 49,180 L,386 32,125 2,705 3,945 9,021 Dec... 46,484 ,340 31,317 2,460 3,840 7,534 Treasury notes: Maturing in 10-20 1944—Dec.. . 23,039 60 1,566 15,411 336 568 5,098 years: 1945—June.. 23,497 52 1,685 16,076 242 601 4,841 1944—Dec. . 14,445 1,028 5,354 1,887 2,612 3,563 July.. 23,498 52 1,698 16,211 244 598 4,695 1945—June.. 16,727 1,054 4,562 2,458 2,471 6,179 Aug... 23,498 52 1,762 16,058 247 587 4,793 July. . 17,307 1,058 4,667 2,673 2,476 6,433 Sept.. 23,498 53 1,933 15,830 260 581 4,841 Aug... 17,446 1,057 4,687 2,814 2,534 6,352 Oct... 23,498 80 1,920 15,834 258 591 4,815 Sept.. 16,748 982 4,388 2,868 2,493 6,020 Nov. . 23,498 71 2,102 15,678 223 607 4,817 Oct... 16,748 985 4,451 2,928 2,505 5,880 Dec... 22,967 8 2,120 15,701 179 576 4,383 Nov. . 16,880 907 4,371 2,966 2,458 6,178 Dec... 20,532 967 5,406 3,298 2,995 7,865 Guaranteed Maturing after 20 securities: years: 1944—Dec.. . 1,194 1 3 960 6 22 203 1944—Dec.. . 25,227 3,366 1,873 2,125 10,462 7,401 1945—June.. 34 6 10 2 13 3 1945—June.. 32,626 4,146 2,317 3,010 12,779 10,375 July.. 34 6 10 2 13 3 July.. 33,219 4,140 2,385 3,20013,06110,435 Aug... 35 7 11 2 13 2 Aug... 33,360 4,141 2,470 3,26613,19910,284 Sept.. 37 7 12 .2 13 4 Sept 33,394 4,141 2,521 3,25713,357 10,120 Oct... 39 7 12 2 13 4 Oct.;. 33,394 4,140 2,609 3,27713,466 9,900 Nov. . 39 7 13 3 14 3 Nov. . 35,095 4,139 2,679 3,333 13,51111,432 Dec... 41 7 11 3 14 6 Dec... 42,526 5,073 2,532 4,30015,14115,482 * Figures include only holdings by institutions or agencies from which reports are received. Data for commercial banks, mutual savings banks, and the residual "other" are not entirely comparable from month to month. Since June 1943 the coverage by the survey of commercial banks has been expanded. Figures in column headed "other" include holdings by nonreporting banks and insurance companies as well as by other investors. Estimates of total holdings (including relatively small amounts of nonmarketable issues) by all banks and all insurance companies for certain dates are shown in the table above. 1 Including stock savings banks. On Dec 31, 1945, commercial banks reporting to the Treasury held 30,538 million dollars of U. S. Government securities due or callable within one year out of a total of 70,546 million outstanding. 2 Including 196 million dollars of Postal Savings and prewar bonds not shown separately below. 318 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SUMMARY OF TREASURY RECEIPTS, EXPENDITURES, AND RELATED ITEMS [On basis of daily statements of United States Treasury. In millions of dollars] Period W I h n e c i l t o d h m 2 - e O ta t x h e e s r 1 n i c r M n n e e e n t u l v o a i e l e s e u a l r - 1 - - - s S S ta r o e i x c c ty e i u a s - l c O e r t i e h p - e ts r c T e r o i e t p - a t l s ce N r i e p e - t ts3 I d n e o e t s n e b t r t - t f i N e d o n e n a s - - a e l c T f o t e e r r a u r a u t c s n c n s - . t t t s s o - , O p tu e e t n r x h e d - e s r i- e b i T x t u u p o d r e t g e n a e s l d t - D c e i f t i- co T e a u r t c c u n - . s 4 t t s C f a g h b e u n i e a r a n n a c n n l d - l e - ge g c d r r I e e o n b a s - t s se Fiscal year ending: June 1943 16,094 4,553 1,508 1,230 23,38522,282 1,80872,109 435 3,827 78,17955,897 -1,861 +6,515 64,274 June 1944 8,39326,262 5,291 1,751 3,711 45,40844,149 2,609 87,039 556 3,540 93,74449,595 +4,051 + 10,662 64,307 June 1945 10,289 24,884 6,949 1,793 3,824 47,740 46,457 3,617 90,029 1,646 5,113 100,40553,948 +798 +4,52957,679 1945—February. . 1,295 1,627 552 341 172 3,987 3,767 91 6,948 48 373 7,460 ,693 +101 292 1,300 March 883 4,935 520 96 473 6,908 6,892 628 8,246 45 513 9,433 ,540 +262 036 242 April 600 1,567 534 46 221 2,967 2,929 139 7,139 236 455 7,968 ,040 +9 911 1,120 May 1,282 745 557 337 477 3,398 3,085 66 8,156 296 757 9,275 6,190 +686 ,741 3,763 June 826 3,930 561 69 529 5,916 5,914 1,009 7,837 335 460 9,641 3,727 -1,050 + 15,07319,850 July 669 1,073 718 66 228 2,754 2,695 156 7,324 530 547 8,557 5,862 -116 ,615 3,362 August 1,200 466 877 306 432 2,997 99 6,398 162 695 7,354 4,357 -50 ,451 956 September. 768 3,440 573 69 342 5,189 647 5,365 34 564 6,611 1,422 -95 ,497 -980 October.... 572 1,021 689 58 241 2,581 2,530 172 5,124 38 617 5,950 3,420 +302 ,321 -203 November. 1,076 449 602 257 225 2,609 2,374 84 4,224 348 4,656 2,282 +390 632 3,524 December.. 707 2,659 516 69 170 4,122 4,118 817 4,244 384 5,445 1,327 + 113+ 11,55812,773 1946—January... 554 2,201 645 51 397 3,848 3,819 309 3,417 684 482 4.891 1,073 -276 -577 772 February. . 1,086 1,704 584 310 191 3,875 3,678 118 2,702 148 543 3,510 + 168 +39 +534 327 Details of trust accounts, etc. General fund of the Treasury (end of period) Social Security accounts Net ex- Other Assets penditures Period c N e r i e e p - t ts I m n e v n e t s s t- p t e E u n r x d e - s i- c i G a n o i g n m o u c e g v n h n e e t a e c n s r c i c t n e o k - - s f - ce R i e p - ts I m nv e e n s t t s - p t e E u n r x e d - s i- Total R F B p e e D o a d s i s n n e e e i r - k r t v s a s e l d s p t p e a D o e p i r s n c e o i i e i - s t a s s i l - O as t s h e e ts r l T ia t o i b e t i s a li l - B ge f a u n l i a n n e n d ra c l e Fiscal year ending June 1943 2,810 2,350 456 2,194 1,117 655 133 10,149 1,038 7,667 1,444 643 9,507 June 1944.... 3,202 2,816 380 4,403 1,851 1,313 192 20,775 1,442 18,007 1,327 607 20,169 June 1945 3,239 2,757 453 1,178 3,820 2,444 -571 25,119 1,500 22,622 997 421 24,698 1945—February. . 432 208 37 313 250 122 -98 17,734 1,384 15,265 1,085 420 17,313 March 66 227 43 -407 270 128 84 15,722 1,547 13,055 1,120 445 15,277 April 122 48 40 71 412 228 137 11,809 1,224 9,492 1,093 443 11,366 May 592 271 42 -154 530 296 -21 10,055 1,140 7,941 974 430 9,625 June 217 482 42 778 701 663 3 25,119 1,500 22,622 997 421 24,698 July 312 203 51 222 579 441 89 22,469 1,252 20,303 914 386 22,082 August 543 239 56 -26 336 172 487 19,018 1,300 16,874 844 387 18,631 September. 52 241 91 51 407 163 9 16,582 1,755 13,989 839 447 16,134 October 132 -66 146 -274 284 80 228 13,307 1,124 11,389 794 494 12,813 November. 419 38 143 -79 295 65 158 14,849 1,372 12,694 784 404 14,445 December.. 54 198 149 -395 260 54 195 26,520 1,674 24,044 802 517 26,003 1946—January. .. 178 -36 178 -9 810 583 548 25,851 1,011 24,030 810 424 25.427 February.. 355 -13 178 9 393 534 26,414 1,209 24,447 758 453 25,961 1 Details on collection basis given in table below. 2 Withheld by employers (Current Tax Payment Act of 1943). 3 Total receipts less social security employment taxes, which are appropriated directly to the Federal old-age and survivors insurance trust fund. < Excess of receipts (+) or expenditures ( —). Back figures.—See Banking and Monetary Statistics, Tables 150-151, po. 513-516. INTERNAL REVENUE COLLECTION^ [On basis of reports of collections. In millions of dollars] Income taxes Miscellaneous internal revenue Period Total v i C r n i e d u d n u r i t - - al W he i l t d h 1 - V t t o a i r c x y - r c C a r o e t u r i n p r o t - o n - t B a a x c e k s E p ta r x o x c f e e i s s ts s p O ta r t o x h f e e i s t r s Total C st t t a o a a p c x l i k - E t a g a s n x i t f a d e t t s e b A t h a a e o l x g v c li e e o e c s r - - b t T a a x c o e c - s o S ta ta x m es p M r t e e u t a t x a a a n r x n c e i u i l d e r s e f s s e a r ' s c ' - n t c M a e e x o l i l e s u a - s s - Fiscal year ending: June 1943.... 16,299 5,771 686 4,137 557 5,064 84 4,571 329 447 1,423 924 45 670 732 June 1944 33,028 10,254 '7,638 785 4,763 705 9,345 137 5,3531 381 511 1,618 988 51 729 1,075 June 1945.... 35,062 8,567 10,263 1 4,422 66111,004 144 6,960 372 643 2,310 932 66 1,207 1,430 1945—January 3,024 1,889 690 43 126 270 547 49 206 78 6 117 90 February.... 3,158 759 1,892 57 143 301 6 510 37 195 66 6 116 90 March 4,996 1,737 61 956 59 2,170 13 560 89 171 74 6 104 117 April 2,408 907 915 160 -26 443 9 517 75 171 68 5 97 100 May 2,406 201 1,751 70 79 295 10 571 64 180 83 6 116 121 June 4,025 1,127 46 858 79 1,895 21 572 62 191 93 6 104 116 July 2,242 318 1,249 i 161 75 429 8 791 '" ios 49 198 84 6 121 228 August 1,916 87 1,461 -1 74 62 .228 824 209 69 199 108 5 102 132 September. . . 3,553 1,112 32 • 768 46 1,584 11 531 7 34 198 101 6 93 93 October 2,031 271 1,094 191 47 421 6 706 30 44 243 120 7 122 140 November. . . 1,856 41 1,405 105 50 248 6 605 44 230 98 8 112 113 December 2,742 539 27 660 105 1,398 13 512 45 188 62 7 107 102 1946—January 3,189 1,670 604 151 222 536 6 643 61 221 96 8 136 121 1 Withheld by employers (Current Tax Payment Act of 1943). 319 MARCH 1946 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

GOVERNMENT CORPORATIONS AND CREDIT AGENCIES [Based on compilation by United States Treasury Department. In millions of dollars] PRINCIPAL ASSETS AND LIABILITIES Assets, other than interagency itemsl Liabilities, other than interagency items Corporation or agency Total Cash L c a e r o b e i a l - v e n - s m C m p s r t a l i i u o o a n i e a p e m d t d s l - s e s , i - , - - G U s ri e o . t c i v I e u S m n t s - . . v e e n s O t s r s t i e - t t c h ie u e s - r L e t s m u a q t a r r n e u n u e d n i d s c p t , , - - c U h t u n r a t i d r e b g i d - s e - s O s a t e s h t - e s r b t a B F g u y n a u r o u t n e U e a n l d s l e r d y . - d S s p d , . e a n b y O o e a t t n b h e - l e s e , r l O i i a t t i b h e i e s l r - i U m G n e e . r t o e s e n v n t S r - - t - . o v in P w a e t r t s e n i e t - r e l - y d All agencies: Mar. 31, 1945. 31,309 768 5,789 2,960 1,756 388 16,734 1,001 1,913 1,150 1,237 4,962 23,510 451 June 30, 1945. 33,552 700 5,544 2,507 1,679 375 20,164 7721,811 502 1,163 4,162 27,266 459 Sept. 30, 1945. 34,247 815 5,409 2,487 1,756 368 20,816 4422,154 551 1,135 4,486 27,610 465 Dec. 31, 1945. 33,844 925 5,290 2,288 1,683 325 21,017 4721,845 555 1,113 4,212 27,492 472 Classification by agency Dec. 31, 1945 Department of Agriculture: Farm Credit Administration: Banks for cooperatives 268 196 43 252 8 Federal intermediate credit banks. . 298 231 43 245 51 Federal land banks 1,231 1,016 145 792 169 230 Production credit corporation 124 67 55 123 Regional Agricultural Credit Corp.. 16 4 14 Other3 17 13 2 15 Federal Farm Mortgage Corp 191 173 6 181 Rural Electrification Administration. 416 407 5 416 War Food Administration: Commodity Credit Corp 1,311 99 1,034 135 506 491 314 Farm Security Administration.'..... 458 320 49 9 449 Federal Crop Insurance Corp 39 3 24 3 36 Federal Surplus Commodities Corp. 3 3 National Housing Agency:4 Federal Home Loan Bank Administration: Federal home loan banks 335 195 118 69 46 125 95 Federal Savings and Loan Insurance Corp. 165 161 100 Home Owners' Loan Corp 919 840 15 21 884 Federal Public Housing Authority and affiliate: Federal Public Housing Authority. 552 286 222 1 551 Defense Homes Corp 66 1 64 () 1 65 Federal Housing Administration 168 19 106 lj 19 34 6 128 Federal National Mortgage Association. 7 7 7 R.F.C. Mortgage Company 50 38 3 47 Reconstruction Finance Corp.5 10,283 65 991 1,131 49 244 6,912 312 580 1,630 8,654 Office of Emergency Management: Smaller War Plants Corp 175 132 27 14 1! 1 3 172 War Shipping Administration 8,825 179 7,813 130 649 950 7,876 Coordinator of Inter-American Affairs. . 17 16 () 1 11 6 Export-Import Bank 256 1 252 2 103 152 Federal Deposit Insurance Corp 931 16 6 897 12 642 150 139 Federal Works Agency 272 2 80 147 43 272 Tennessee Valley Authority 741 7 2 721 3 8 734 U. S. Maritime Commission 3,739 21 7 3,395 259 102 3,638 All other 1,970 149 78 30 1,684 13 1,909 CLASSIFICATION OF LOANS BY PURPOSE AND AGENCY Dec. 31, 1945 Purpose of loan b l F a a e n n d k d . s M C F F a o e o r r d m r p . t . . c b m i F n r a a e e t e n t e d d e d k r i i . - s t - f o B t o i p a r v e n e c r k s a o s - - C m C C r o o o e d m r d p i i - t . t y t A R r E t i i f u d l o i e r m c n c a a - . l - A F S r e a d i c t r m y m u- . H C O L e o o o w rs m r a n ' p n e - . P A H F u i o u n e b u t g d l h s i . . c - b h F l a o o e n m a d k n . e s R a a a . f t F f n e il d . s i C - . B p p I E o a m o x r n r t - - t k - o A th l e l r a c g A i e e l n l s - 3 a 0 g , S e a n e 1 l p c l 9 i t 4 e . 5 s To aid agriculture 1,088 242 231 197 99 407 467 (2) 145 2,878 2,948 To aid home owners 852 43 1 896 961 To aid industry: Railroads 205 18 223 232 Other 149 83 232 185 To aid financial institutions: Banks 28 12 40 43 Other Other 286 195 58 3 2 2 ' *252" ' iii' 1,2 2 3 2 2 7 1,3 1 6 3 5 2 Less: Reserve for losses. 72 70 (2) (2) 147 12 3 (2) 133 438 457 Total loans receivable (net) 1,016 173 231 196 99 407 320 840 286 195 1,036 252 238 5,290 5,409 1 Assets are shown on a net basis, i.e., after reserves for losses. 2 Less than $500,000. 3 Includes Agricultural Marketing Act Revolving Fund and Emergency Crop and Feed Loans. 4 All assets and liabilities of the United States Housing Corp. have been liquidated. 5 Includes War Assets Corporation (formerly Petroleum Reserves Corporation), Rubber Development Corporation and U. S. Commercial Company, which were transferred to the Reconstruction Finance Corporation from Foreign" Economic Administration under Executive Order 9630, and War Damage Corporation. NOTE.—'This table is based on the revised form of the Treasury Statement beginning Sept. 30, 1944, which is on a quarterly basis. Quarterly, figures are not comparable with monthly figures previously published. Monthly figures on the old reporting basis for the months prior to Sept. 30, 1944, may be found in earlier issues of the BULLETIN (see p. 1110 of the November 1944 BULLETIN) and in Banking amd Monetary Statistics Table 152, p. 517. 320 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] m Y a o n e n a d t r h 1 ( I m v 9 n p a 3 c e a l 1 5 o n u y 0 - m e t - 3 0 s ) 9 e Tot I a ( n l p d h u y 1 s s 9 t i r 3 c i a 5 a D l a l - 3 b u v f p 9 l M a r o e r = - c o l a u t 1 d u n m 0 u r u N 0 e d c e - s t u ) o i * r o n - n - 2 M era in ls - To a t w a 1 C l a 9 o c r 2 d n o 3 e s n R d - d t t t 2 r e i e r a u n 5 s a ( l c i - = v c - t t a 1 i s o l 0 u n o 0 e A t ) h 3 l e l r N t a c u g u o r r l n a - i- l - E 1 m 93 p 9 lo F = y a 1 m c 0 t 0 e o n r t y 4 1 r 9 F r o 3 a a 1 t l 9 c y o 0 l s - r 0 4 = y c 1 F a 9 i r n r 3 e l g 1 o 5 i s 0 g - a ' 3 d 0 h 9 - t D 19 m s u s ( e 3 t v a e p o e 1 5 l a ) a e r n * 0 - l e r s 3 - t 0 t 9 - W p m c = 1 r s h o i o 9 a c o 1 m 2 d l e l 0 e e i 6 s - t 0 * - y C 1 l 9 i o v 3 s i 1 5 t n 0 - g 3 0 o 4 9 f able 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 79 103. 103.2 120 83 138.6 124.5 1920 75 93 60 83 63 30 90 104. 123.5 129 99 154.4 143.2 1921 58 53 57 66 56 44 65 79. 79.7 110 92 97.6 127.7 1922 73 81 67 71 79 68 88 88. 85.5 121 94 96.7 119.7 1923 88 103 72 98 84 81 86 101, 108.4 142 105 100.6 121.9 1924 82 95 69 89 94 95 94 93, 101.2 139 105 98.1 122.2 1925 90 107 76 92 122 124 120 97, 106.6 146 110 103.5 125.4 1926 96 114 79 100 129 121 135 98. 109.9 152 113 100.0 126.4 1927 95 107 83 100 129 117 139 96. 107.9 147 114 95.4 124.0 1928 99 117 85 99 135 126 142 96. 109.1 148 115 96.7 122,6 1929 122.9 110 132 93 107 117 87 142 102.6 103. 116.4 152 117 95.3 122.5 1930 109 91 98 84 93 92 50 125 95.5 89 94.1 131 108 86.4 119 1931 92.3 75 67 79 80 63 37 84 86.1 75. 71.2 105 97 73.0 108 1932 70.6 58 41 70 67 28 13 40 75.5 64, 49.2 78 75 64.8 97.6 1933..... 68.9 69 54 79 76 25 11 37 76.0 71 52.8 82 73 65.9 92. 1934 78.7 75 65 81 80 32 12 48 83.8 83, 67.8 89 83 74.9 95. 1935 87 87 83 90 86 37 21 50 87.6 88, 78.0 92 88 80.0 98.1 1936 101.3 103 108 100 99 55 37 70 94.9 96 90.5 107 100 80.8 99.1 1937 107 113 122 106 112 59 41 74 100.9 105 108.2 111 107 86.3 102.7 1938 98.5 89 78 95 97 64 45 80 94.4 90 84.2 89 99 78.6 100.8 1939 105.4 109 109 109 106 72 60 81 100.0 100 100.0 101 106 77.1 99.4 1940 113. 125 139 115 117 81 72 89 104.7 107 114.5 109 114 78.6 100.2 1941 138.0 162 201 142 125 122 89 149 117.5 132 167.5 130 133 87.3 105.2 1942 174.6 199 279 158 129 166 82 235 126.7 154 245.2 138 150 98.8 116.5 1943 213.0 239 360 176 132 68 40 92 130.9 177 334.4 137 168 103.1 123.6 1944 233 235 353 171 140 41 16 61 127.5 169 339.1 140 186 104.0 125.5 1945 P239. P203 P274 P166 P137 68 26 102P121.8 P143 P277.3 135 207 105.8 128.4 1943 February.. 203.5 232 229 344 174 131 102 140 131.6 173.1 172.5 308.9 139 ••191 102.5 121.0 March 206.9 235 232 351 174 133 85 119 132.0 175.1 174.6 318.0 138 161 103.4 122.8 April 208.8 237 236 356 175 131 63 87 131.4 176.2 175.4 324.9 136 '160 103.7 124.1 May 209.4 239 239 359 176 129 52 68 130.9 176.9 175.8 330.4 135 159 104.1 125.1 June 212.8 237 238 358 177 117 45 55 131.0 179.0 178.3 336.1 127 168 103.8 124.8 July 214.8 240 241 360 177 134 60 80 131.4 180.1 180.2 335.8 141 169 103.2 123.9 August 216. 242 245 365 178 135 59 79 130.9 180.2 181.4 343.1 140 166 103.1 123.4 September 216.8 244 248 368 179 138 65 89 130.1 179.6 180.8 349.5 140 165 103.1 123.9 October. . . 219.3 247 249 374 179 136 49 61 130.1 180.6 181.4 354.9 137 172 103.0 124.4 November. 222.9 247 247 376 180 133 60 78 130.2 181.5 181.9 359.7 139 '176 102.9 124.2 December 224. 241 239 365 174 137 61 81 130.1 179.9 180.3 350.7 143 '168 103.2 124.4 1944 January... 227. 243 240 369 176 139 130.0 178.1 177.5 350.0 174 103.3 124.2 February.. 232.4 244 240 367 177 142 129.6 177.1 176.5 349.7 142 '174 103.6 123.8 March 231.9 241 238 364 175 139 128.9 174.6 174.1 346.3 140 183 103.8 123.8 April 231.1 239 23 361 172 140 128.0 171.8 171.0 339.8 138 '174 103.9 124.6 May , 232.1 236 236 356 169 143 127 170.1 169.1 339.2 138 183 104.0 125.1 June 233.9 235 236 354 169 142 127 169.2 168.6 339.5 139 176 104.3 125.4 July 233.2 230 232 347 165 139 127.5 167.6 167.7 331.7 142 189 104.1 126.1 August 234.0 232 23: 348 168 142 127.3 166.8 167.9 335.0 142 187 103.9 126.4 September 232.5 230 234 342 168 143 126 164.9 166.0 333.8 139 187 104.0 126.5 October. . . 235. 232 234 344 169 143 125 163.3 164.1 335.1 137 193 104.1 126.5 November 237.5 232 232 341 173 143 125.3 162.6 163.0 331.8 141 '204 104.4 126.6 December 239.0 232 230 343 173 137 125.7 163.0 163.3 336.8 137 196 104.7 127.0 1945 January.. . 241.9 234 230 345 175 140 48 75 126.6 162.9 162.4 335.2 '144 197 104.9 127.1 February.. 245. 236 23 346 176 141 59 96 126.7 162.5 162.0 333.7 139 211 105.2 126.9 March 244.1 235 23! 345 176 142 72 118 126.7 160.6 160.2 330.2 145 220 105.3 126.8 April 242.3 230 229 336 174 140 70 112 125.1 157.6 156.9 321.5 141 '182 105.7 127.1 May 241.9 225 225 323 173 138 58 89 124.4 154.5 153.6 307.0 140 188 106.0 128.1 June 244.6 220 220 308 173 144 50 73 123.4 151.0 150.5 302 140 202 106.1 129.0 July 243.4 210 211 292 165 143 54 79 122 145.5 145.6 286 139 218 105.9 129.4 August 236.0 186 188 239 157 140 61 91 121.5 141.1 142.1 256 128 200 105.7 129.3 September 229.0 167 171 194 156 134 69 104 115.8 121.4 122.4 214.2 127 '200 105.2 128.9 October... 231.4 162 164 186 154 124 S3 121 115.4 '120.6 '121.4 -•212 118 '212 105.9 128.9 November, 2235.7 168 167 '191 158 138 94 134'116.4 121.2 121.6 '212.5 133 '225 106.8 129.2 December. P233.8 163 161 185 156 133 108 150 117.4 121.3 121.6 215.5 127 216 107.1 129.9 1946 January P159 P167 P159 P139 P60 P148P119.3P122.7P122.2 133 226 107.1 129.9 * Average per working day. P Preliminary. r Revised. 1 Department of Commerce series on value of payments to individuals. 2 For indexes by groups or industries, see pp. 322-325. For points in total index, by major groups, see p. 339. 3 Based on F. W. Dodge Corporation data; for description, see p. 358 of BULLETIN for July 1931; by groups, see p. 329 of this BULLETIN. 4 The unadjusted indexes of employment and pay rolls, wholesale commodity prices, and cost of living are compiled by or based on data of the Bureau of Labor Statistics. Nonagricultural employment covers employees only and excludes personnel in the armed forces. 5 For indexes by Federal Reserve districts and other department store data, see pp. 331-333. Back figures in BULLETIN.—For industrial production, August 1940, pp. 825-882, September 1941, pp. 933-937, and October 1943, pp. 958-984; for factory employment, January and December 1943, pp. 14 and 1,187, respectively, and October 1945, pp. 1054-1055; for department store sales, June 1944, pp. 549-561. MARCH 1946 321 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] 1944 1945 Industry Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Industrial Production—Total. 232 234 236 235 230 225 220 210 186 167 162 168 163 Manufactures—Total 249 251 252 252 247 240 233 222 194 173 168 173 169 163 Durable Manufactures. . 343 345 346 345 336 323 308 292 239 194 186 191 185 167 Iron and Steel. . . 197 202 210 206 204 192 187 155 163 146 167 165 105 Pig iron 190 188 198 188 190 181 182 161 166 129 158 164 Steel 215 219 226 234 232 229 214 203 164 171 159 178 173 Open hearth. . 181 176 180 189 184 182 173 172 142 154 139 160 156 Electric 456 526 552 561 573 567 505 421 319 296 307 306 294 Machinery 431 431 436 419 405 393 371 310 230 232 231 230 >221 Manufacturing Arsenals and Depots1. Transportation Equipment 709 706 695 676 651 610 572 535 27 Z 258 250 218 216 Automobiles 235 235 242 236 231 218 207 188 142 105 120 135 94 101 (Aircraft; Railroad cars; Locomotives; Shipbuilding—Private and Government)1 Nonferrous Metals and Products. 229 253 257 267 263 248 219 196 165 138 143 146 144 Smelting and refining 186 187 191 193 194 188 184 183 171 150 148 147 (Copper smelting; Lead refining; Zinc smelting; Aluminum; Magnesium; Tin)1 Fabricating 247 280 284 296 291 272 234 202 162 '133 '141 146 146 (Copper products; Lead shipments; Zinc shipments; Aluminum products; Magnesium products; Tin consumption)1 Lumber and Products 122 126 123 121 119 118 116 110 107 98 91 93 P!09 Lumber. . 111 118 112 110 109 108 104 98 98 89 76 7? P95 Furniture. 142 142 146 140 138 138 134 124 115 120 133 138 Stone, Clay, and Glass Products. . , 163 162 163 166 167 162 166 169 160 161 161 164 175 Glass products 174 164 168 175 183 179 176 193 177 200 186 181 189 Plate glass 51 60 56 61 62 61 43 62 61 79 50 3 29 Glass containers 218 200 207 216 225 221 223 239 217 243 235 244 246 Cement 90 87 87 86 85 85 95 93 97 97 106 119 131 Clay products 116 125 122 124 122 115 121 117 110 110 116 124 143 Gypsum and plaster products. . . 171 182 185 183 180 168 172 179 162 172 177 183 '203 A O b th r e a r s i s v t e o n a e n d a n a d s b c e l s a t y o s p r p o r d o u d c u t c s t 1 s . . . . 307 302 305 306 300 295 298 287 260 220 218 217 '218 Nondurable Manufactures. 173 175 176 176 174 173 165 157 156 154 158 156 159 Textiles and Products 152 150 155 153 149 150 132 134 141 146 143 150 Textile fabrics 141 139 144 142 137 138 121 123 134 131 135 132 Cotton consumption 146 145 152 150 143 142 123 123 138 128 133 125 138 R N a y y lo o n n a d n e d li v s e il r k ie c s onsumption1. . . 215 215 215 214 218 221 220 213 215 215 226 228 234 Wool textiles 152 146 151 149 142 146 144 117 127 142 147 150 149 Carpet wool consumption.. 57 49 44 43 36 42 40 33 58 82 93 '89 104 Apparel wool consumption. 215 225 238 249 233 243 234 185 172 186 191 193 184 Woolen and worsted yarn.. 165 156 160 156 147 151 152 124 136 154 156 160 156 Woolen yarn 170 162 170 166 153 161 162 129 145 158 156 163 158 Worsted yarn 157 148 146 142 139 137 137 117 125 149 156 156 153 Woolen and worsted cloth . 166 159 169 166 161 165 161 129 136 144 149 154 154 Leather and Products. 114 113 121 122 122 121 127 109 108 119 112 116 110 Leather, tanning 115 113 119 117 118 115 119 109 98 112 107 109 114 Cattle hide leathers 127 125 137 132 134 132 137 128 112 125 121 -•125 132 Calf and kip leathers 86 85 89 88 95 91 97 79 75 97 89 83 91 Goat and kid leathers 72 68 63 69 61 62 56 50 47 52 46 51 49 Sheep and lamb leathers 154 155 148 144 146 132 137 133 130 151 145 140 139 Shoes 113 123 126 125 126 132 109 114 123 116 120 108 114 Manufactured Food Products.... 155 158 160 160 153 151 147 138 144 143 150 151 >150 155 W Ca h n e e a t s u f g lo a u r r meltings1 130 131 125 138 140 138 135 130 127 129 133 136 Manu B f u ac tt t e u r red dairy products . P14 7 5 8 P1 8 32 3 P1 8 32 1 P1 8 3 4 8 87 87 P1 9 4 0 3 P1 8 48 9 85 P14 7 8 5 P14 7 5 2 P1 6 54 5 P1 6 3 0 2 Cheese 154 163 162 168 181 175 179 181 171 160 155 149 144 Canned and dried milk. . 179 172 175 189 204 196 206 222 208 201 156 146 136 Ice ccream Meat ppackkiing 158 146 146 146 134 132 141 140 133 141 129 155 155 131 PPko rka nand lard 164 149 135 139 137 135 144 146 126 120 99 153 171 146 Beef 149 147 169 165 139 134 142 136 144 165 159 158 138 122 Veal 175 123 101 104 88 95 103 116 151 179 197 189 138 • 87 Lamb and mutton 149 143 129 129 121 128 142 133 110 125 134 135 148 105 p Revised. Preliminary. l Series included in total and group indexes but not available for publication separately. 322 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDUSTRIAL PRODUCTION, BY INDUSTRIES—Continued (Adjusted for Seasonal Variation) [Index numbers of the Board of Governors. 1935-39 average = 100] 1946 Industry Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec, Jan. Manufactured Food Products—Continued Other manufactured foods 159 162 165 169 168 161 155 150 139 146 148 152 •156 159 Processed fruits and vegetables. 146 162 163 180 170 149 139 134 101 109 '128 127 138 P137 Confectionery 138 137 143 151 156 151 129 108 107 108 108 113 Other food products 165 167 170 169 169 165 163 161 155 162 160 165 168 173 Alcoholic Beverages. 169 213 170 148 144 136 139 193 173 192 201 216 212 Malt liquor 174 167 167 153 152 139 139 147 149 181 182 199 197 Whiskey 0 198 11 0 0 0 0 199 55 52 70 83 130 Other distilled spirits. 74 452 250 156 67 61 57 448 399 236 218 223 274 Rectified liquors 355 346 312 265 283 291 318 293 306 365 420 427 343 Industrial Alcohol from Beverage Plants1. Tobacco Products 131 121 123 123 120 128 139 128 150 160 167 154 112 143 Cigars 95 85 95 93 91 92 93 91 106 111 110 87 104 Cigarettes 155 147 145 147 143 156 177 195 206 216 194 139 185 Other tobacco products. 108 95 97 91 90 94 90 98 99 96 94 64 71 Paper and Paper Products. 135 136 137 141 140 141 142 135 131 143 143. 142 134 P134 Paper and pulp 132 132 134 137 136 136 137 131 129 138 139 138 132 Pulp 150 152 156 157 160 160 160 149 146 152 154 153 137 Groundwood pulp 115 111 113 113 114 108 116 120 118 124 124 114 95 Soda pulp 97 95 98 101 103 103 103 93 92 100 101 103 100 Sulphate pulp 212 214 227 227 234 236 236 227 219 223 227 223 195 Sulphite pulp 133 137 139 139 141 140 138 122 120 126 129 131 120 Paper 129 129 130 134 132 133 134 128 126 136 137 136 131 130 Paperboard 145 153 152 157 158 161 160 149 141 165 157 158 143 145 Fine paper 93 85 87 84 79 78 75 73 74 77 80 79 78 81 Printing paper 125 119 125 127 126 125 126 122 126 125 133 132 132 134 Tissue and absorbent paper 156 147 143 148 144 141 139 146 142 142 147 145 149 146 Wrapping paper 125 128 127 133 129 132 139 133 135 141 147 140 140 128 Newsprint. . ^ 85 76 83 82 80 80 79 80 72 81 79 81 86 86 Paperboard containers (same as Paperboard). Printing and Publishing. 104 105 105 105 105 106 105 109 115 114 112 118 Newsprint consumption 84 84 83 85 85 85 93 96 96 92 102 Printing paper (same as shown under Paper). Petroleum and Coal Products. 273 276 272 268 273 269 P267 '240 P!56 Petroleum refining Gasoline 150 145 148 155 132 129 147 144 P137 Fuel oil.. 174 166 177 173 151 152 164 Lubricating oil 126 134 136 138 119 120 133 Kerosene 126 131 132 140 116 122 144 Other petroleum products1'. Coke 167 167 168 171 161 168 163 165 153 152 116 '148 154 By-product coke 163 162 163 164 157 161 155 158 148 150 115 144 150 Beehive coke 296 '335 367 387 284 406 421 400 332 224 145 276 286 P274 Chemical Products. 312 317 318 319 318 319 318 307 265 239 230 '230 231 P235 Paints 141 142 140 139 135 131 134 139 133 136 139 142 142 P147 Soap •. 137 136 136 135 134 134 132 130 122 126 124 124 127 P130 Rayon 242 244 241 244 241 240 243 243 222 237 '238 -•244 243 P247 Industrial chemicals 396 396 400 402 405 407 412 409 368 386 371 -370 380 P388 Explosives and ammunition1. . Other chemical products1 Rubber Products. . . 239 247 247 236 233 224 222 218 193 172 191 192 204 P208 Minerals—Total . 137 140 141 142 140 138 144 143 140 134 124 138 133 P139 Fuels 141 145 146 147 145 143 150 148 146 139 126 143 137 P146 Coal 132 140 143 142 136 125 148 140 135 142 112 149 P151 Bituminous coal. . 138 151 150 149 138 145 153 146 144 148 110 159 142 P159 Anthracite 109 96 112 115 131 47 129 117 102 114 120 112 94 P115 Crude petroleum 146 148 148 150 150 152 151 153 152 138 133 141 139 P143 Metals. 111 111 111 111 111 110 109 r109 105 106 108 109 108 Metals other than gold and silver.. 168 170 170 170 169 167 168 168 162 161 164 163 161 Iron ore (Copper; Lead; Zinc)1 Gold . Silver r Revised. P Preliminary. 1 Series included in total and group indexes but not available for publication separately. NOTE.—Series on petroleum refining, usually published in this table, is in process of revision. For description and back figures see BULLETIN for October 1943, pp. 940-984, September 1941, pp. 878-881 and 933-937, and August 1940, pp. 753-771 and 825-882. 323 MARCH 1946 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] 1944 1945 1946 Industry Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Industrial Production—Total 230 230 232 232 229 225 220 211 188 171 164 167 161 P155 Manufactures—Total 248 248 249 249 245 240 234 223 196 177 171 173 167 P159 Durable Manufactures 342 343 345 344 335 323 308 292 ••240 195 187 '191 184 P165 Iron and steel . ... 198 197 202 210 206 204 192 187 155 163 146 167 165 P105 Pig iron . . . 190 188 192 198 188 190 181 182 161 166 129 158 164 Steel 215 219 226 234 232 229 214 203 164 171 159 178 173 Open hearth . . .. 181 176 180 189 184 182 173 172 142 154 139 160 156 Electric 456 526 552 561 573 567 505 421 319 296 307 306 294 Machinery 431 431 436 431 419 405 393 371 310 230 232 231 230 P221 Transportation CQuipment . ... 709 706 695 676 651 610 572 535 405 273 258 250 218 P216 Automobiles . . .. . 235 235 242 236 231 218 207 188 142 105 120 135 94 P101 (Aircraft; Railroad cars; Locomotives; Ship- Nonferrous Metals and Products 229 253 257 267 263 248 219 196 165 r138 '143 146 144 Smelting and refining 186 187 191 194 194 189 183 182 171 150 148 148 141 (Copper smelting, Lead refining, Zinc smelting; Aluminum; Magnesium; Tin)1 Fabri ( c C a o ti p n p g e r products; Lead ship . m ents; Z . i . n . c ship . - .. 247 280 284 296 291 272 234 202 162 r133 1-141 146 146 ments; Aluminum products; Magnesium products; Tin consumption)1 Lumber and Products . . 113 113 114 115 119 120 121 116 113 104 94 95 87 P100 Lumber 97 99 97 101 108 112 113 107 108 98 82 81 P80 Furniture , 142 142 146 144 140 138 138 134 124 115 120 123 133 P138 Stone, Clay, and Glass Products 159 156 156 161 165 167 166 168 165 166 167 rl62 159 P166 Glass products 163 161 163 175 183 190 175 186 183 204 192 176 169 186 Plate glass 51 60 56 61 62 61 43 62 61 79 50 4 3 29 Glass containers 202 196 201 216 225 236 221 230 226 '247 242 237 227 241 C C l e a m y e p n r t oducts 12 8 0 2 11 7 6 1 11 6 8 6 11 7 9 1 11 8 9 1 11 8 5 9 1 1 0 2 2 0 1 1 0 1 2 5 1 11 1 3 0 1 1 1 1 2 4 r1 1 2 2 2 3 »- 1 1 2 2 2 3 1 1 2 0 8 8 P1 10 3 7 3 Gypsum and plaster products 175 176 177 177 177 169 175 179 162 176 182 183 187 P194 Abrasive and asbestos products 307 302 305 306 300 295 298 287 260 220 218 215 217 P218 Other stone and clay products1 Nondurable Manufactures 171 170 172 172 171 172 173 167 159 161 158 158 154 P154 Textiles and Products 152 150 155 153 149 150 150 132 134 144 141 146 143 P150 Textile fabrics 141 139 144 142 137 138 138 121 123 134 131 135 132 Cotton consumption 146 145 152 150 143 142 144 123 123 138 128 133 125 138 Ravon deliveries 215 215 215 214 218 221 220 220 213 215 215 226 228 234 Wool C t a e r x p t e i t l es wool consumption 15 5 2 7 14 4 6 9 15 4 1 4 14 4 9 3 14 3 2 6 14 4 6 2 14 4 4 0 11 3 7 3 12 5 7 8 14 8 2 2 14 9 7 3 1 r8 5 9 0 1 1 4 0 9 4 A ^V p o p o a l r e e n l a w n o d o l w c o o r n st s e u d m y p a ti r o n n . . . 2 1 1 6 5 5 2 1 2 5 5 6 2 1 3 6 8 0 2 1 4 5 9 6 2 1 3 4 3 7 2 1 4 5 3 1 2 1 3 5 4 2 1 1 2 8 4 5 1 1 7 3 2 6 1 1 5 8 4 6 1 15 9 6 1 1 1 9 6 3 0 1 15 8 6 4 Woolen yarn 170 162 170 166 153 161 162 129 145 158 156 163 158 ^Vo^sted yarn . .. 157 148 146 142 139 137 137 117 125 149 156 156 153 ^^oolen and worsted cloth 166 159 169 166 161 165 161 129 136 144 149 154 154 Leather and products . ... 113 114 125 122 122 121 126 107 107 118 113 117 110 Leather tanning 114 113 128 116 117 115 116 103 97 110 108 nn 113 Cattle hide leathers ... 127 128 148 132 134 132 132 120 109 123 122 r130 132 Calf and kip leathers 84 83 93 87 91 87 99 78 79 95 91 86 89 Goat and kid leathers . .. 73 68 66 68 63 61 57 49 46 52 46 50 50 Sheep and lamb leathers 146 144 162 140 143 142 135 123 134 148 145 148 132 Shoes 113 114 123 126 125 126 132 109 114 123 116 120 108 Manufactured Food Products 150 143 141 142 145 146 150 157 151 166 153 151 147 P139 Wheat flour 122 130 132 122 133 134 132 133 128 139 136 134 135 P139 Cane sugar meltings1 Manufactured dairy products P94 P88 P98 P116 P149 P178 P209 P212 P185 P155 P120 PIOO P84 Butter 61 69 71 77 89 112 124 109 93 72 62 50 47 Cheese 111 120 133 151 189 234 254 223 191 164 139 112 104 Canned and dried milk 138 140 157 186 231 272 284 257 214 185 127 105 105 Ice cream Meat packing 184 171 139 135 125 132 139 131 119 134 133 171 182 155 Pork and lard 217 195 132 129 125 135 144 129 97 95 93 179 225 191 Beef 149 150 156 150 131 134 139 137 146 179 173 164 138 125 Veal 165 114 89 98 86 98 103 116 148 197 224 202 130 81 Lamb and mutton 146 152 131 126 118 130 132 127 108 134 140 135 145 111 r Revised. * Preliminary. 2 Series included in total and group indexes but not available for publication separately. 324 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDUSTRIAL PRODUCTION, BY INDUSTRIES—Continued (Without Seasonal Adjustment) [Index numbers of the Board of Governors. 1935-39 average == 100] 1944 1945 1946 Industry Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Manufactured Food Products—Continued Other manufactured foods 155 148 149 148 148 145 146 157 154 176 164 158 J»146 Processed fruits and vegetables ... 114 105 103 99 104 97 107 174 165 242 r165 117 108 Confectionery 139 141 144 140 130 117 96 88 115 139 142 134 Other food products 169 160 161 162 162 162 165 165 158 165 168 173 171 M66 Alcoholic Beverages 146 191 158 139 148 147 162 214 175 199 214 201 188 Malt liquor 140 137 150 142 160 158 175 184 170 183 169 154 157 Whiskey 0 198 11 0 0 0 0 199 55 52 70 83 130 Other distilled spirits 81 414 228 136 44 36 35 400 216 324 566 467 301 Rectified liquors 355 346 312 265 283 291 318 293 306 365 420 427 343 Industrial Alcohol "from Rpvprape Plants 1 Tobacco Products 121 121 118 117 115 128 145 133 155 169 173 157 104 142 Cigars 95 85 95 93 91 92 93 83 91 106 111 110 87 104 Cigarettes 142 147 136 137 133 156 186 170 204 220 225 198 128 185 Other tobacco products . . 95 93 94 91 90 95 92 88 95 106 103 97 57 70 Paper and Paper Products 134 136 138 141 141 142 142 134 131 144 143 142 134 P134 Paper and pulp * 132 132 134 137 136 137 137 130 129 138 139 138 131 Pulp 150 152 157 158 162 161 160 147 144 150 153 153 137 Groundwood pulp 117 115 118 121 125 117 117 107 104 110 115 121 96 Soda pulp . 97 95 98 101 103 103 103 93 92 100 101 103 100 Sulphate pulp 212 214 227 227 234 236 236 227 219 223 227 223 195 Sulphite pulp ... 133 137 139 139 141 140 138 122 120 126 129 131 120 Paper 129 129 131 134 132 133 134 128 126 136 137 136 131 130 Paperboard . . . 145 153 152 157 158 161 160 149 141 165 157 158 143 145 Fine paper 93 85 87 84 79 78 75 73 74 77 80 79 78 81 Printing paper 125 119 125 127 126 125 126 122 126 125 133 132 132 134 Tissue and absorbent paper 151 145 148 148 145 141 142 140 142 142 148 145 145 144 Wrapping oaoer 125 128 127 133 129 132 139 133 135 141 147 140 140 128 Newsprint 84 76 83 82 82 81 80 78 71 81 79 82 84 86 Printing and Publishing 106 99 104 107 108 106 105 99 107 110 117 118 114 114 NewsDrint consumption 88 79 83 87 90 88 84 76 87 94 101 104 96 94 Printing paper (same as shown under Paper). . Petroleum and Coal Products 268 273 276 272 268 273 269 P240 P184 P156 P173 Gasoline 141 143 150 145 145 149 148 156 155 132 129 147 P144 P137 Fuel oil 165 171 174 166 167 174 177 175 173 151 152 164 Lubricating oil 132 129 125 132 141 143 136 134 137 119 120 133 Kerosene 123 126 132 134 123 122 124 124 135 115 122 148 Coke 167 167 168 171 161 168 163 165 153 152 116 r148 154 By-Droduct coke 163 162 163 164 157 161 155 158 148 150 115 144 150 Beehive coke 296 ••335 367 387 284 406 421 400 332 224 145 r276 286 P274 Chemical Products 313 316 319 • 321 320 318 315 303 261 239 232 '231 232 v233 Paints 141 139 139 139 137 135 138 137 132 135 139 140 142 P144 Soap 137 133 135 135 131 130 130 129 124 131 130 125 127 P127 Rayon 242 244 241 244 241 240 243 243 222 237 »-238 r244 243 P247 Industrial chemicals 396 396 400 402 405 407 412 409 368 386 371 '370 380 P388 Rubber Products. ... . 239 247 247 236 233 224 222 218 193 172 r191 r192 204 P208 Minerals—Total 131 134 135 136 140 141 147 145 143 137 125 134 126 P132 Fuels .... 141 145 146 147 145 143 150 148 146 139 126 143 137 P146 Coal 132 140 143 142 136 125 148 140 135 142 112 149 132 P151 Bituminous coal 138 151 150 149 138 145 153 146 144 148 110 159 142 P159 Anthracite 109 96 112 115 131 47 129 117 102 114 120 112 94 P115 Crude petroleum 146 148 148 150 150 152 151 153 152 138 133 141 139 P143 Metals 68 68 68 72 109 131 129 125 124 123 116 80 61 Metals other than gold and silver 94 95 98 104 166 207 204 196 192 188 175 111 80 I ( r C o o n p p o e r r e ; Lead; Zinc)1 61 63 68 80 216 304 301 289 289 281 245 108 50 Gold 24 23 21 21 21 21 20 23 25 29 32 34 Silver 62 56 53 56 61 54 47 42 46 51 54 52 r Revised. v Preliminary. 1 Series included in total and group indexes but not available for publication separately. NOTE.—Series on petroleum refining, usually published in this table, is in process of revision. For description and back figures, see BULLETIN for October 1943, pp. 940-984, September 1941, pp. 878-881 and 933-937, and August 1940, pp. 753-771 and 825-882. 325 MARCH 1946 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FACTORY EMPLOYMENT AND PAY ROLLS, BY INDUSTRIES (Without Seasonal Adjustment) [Index numbers of the Bureau of Labor Statistics, 1939=100] Factory employment Factory pay rolls Industry Group or Industry Annual 1945 1946 Annual 1945 1944 19451 Jan. Oct. Nov. Dec. Jan. 1944 19451 Dec. Jan. Oct. Nov. Dec. Total 169.1 143.4 162.4 121.4 121.6 121.6 122.2 339.1 277.3 336.8 335.2 212.7 212.5 215.5 Durable goods... . 231.4 181.6 219.4 136.4 136.6 134.4 135.6 474.2 354.1 463.6 461.5 233.8 231.7 230.2 Nondurable goods. 119.9 113.2 117.4 109.5 109.8 111.5 111.6 206.9 202.2 212.8 211.7 192.1 193.8 201.1 Iron and Steel and Products 172.0 148.8 169.8 '120.6 121.5 125.4 126.8 318.9 269.7 321.4 321.2 •200.4 •202.2 211.9 Blast furnaces, steel works, etc— 124.3 117.9 122 '110 115 223.7 206.0 226 224 '169 174 181 Steel castings • 249.4 207.5 240 177 170 173 460.8 369.9 455 457 '290 •282 297 Tin cans and other tinware 121.2 125.0 125 113 111 117 203.1 213.8 216 219 186 186 202 Hardware 130.0 116.7 130 98 '97 104 265.5 234.6 276 274 184 178 195 Stoves and heating equipment 136.0 122.0 137 101 105 111 256.8 226.1 269 267 180 182 199 Steam, hot-water heating appa- > ratus 186.2 160.2 183 133 139 145 350.1 297.1 354 358 230 238 254 Stamped and enameled ware 159.9 138.8 157 '110 115 121 322.4 274.4 332 337 •200 209 Structural and ornamental metal 222 work 210.7 159.7 2Q6 116 120 123 413.3 287.6 402 395 187 188 196 Electrical Machinery 290.1 232.3 273.7 173.4 177.8 179.6 520.7 413.1 512. 513.2 278.3 290.3 Electrical equipment 249.5 204.4 238 161 166 162 457.0 364.0 452 454 '254 265 298.4 Radios and phonographs 292.3 216.0 271 129 132 144 552.3 409.2 537 540 218 238 261 Machinery except Electrical 231.9 197.7 223.8 165.7 165.9 166.2 169.8 435.6 357.0 429.8 428.9 '273.6'272.6 263 Machinery and machine-shop 277.4 products 231.1 196.7 223 163 161 161 425.4 350.0 421 '268 '263 265 Engines and turbines 376.1 303.2 365 230 229 207 801.8 590.0 808 790 380 367 368 Tractors 187.9 171.2 186 158 161 165 295.8 262.1 294 295 220 229 235 Agricultural, excluding tractors... 161 146.6 160 129 135 145 324.9 283.0 322 322 230 231 249 Machine tools 215.6 182.0 203 -•158 '142 146 383.1 320.0 381 379 '255 '233 245 Machine-tool accessories ..... 275.4 226.5 258 182 181 184 473.6 375.7 452 458 271 270 279 Pumps 326.3 260.1 305 213 215 217 695.4 525.1 650 649 386 385 406 Refrigerators...' 151.9 126.1 149 99 112 98 273.6 216.5 287 271 159 176 144 Transportation Equipment, except Autos 1483.5 .71333.6 405.1 349.2 328.7 320.1 3082.61810.32952.42900.1 687.5 565.7 566.6 Aircraft, except aircraft engines. . 1800.51062.51613 '320 '309 308 3452.72041.9 198 3257 '537 '513 527 Aircraft engines 2745.91535.4 2395 331 301 246 4845.12578.84295 4335 444 393 346 Shipbuilding and boatbuilding 1642.1 962.01474 532 413 387 3514.22018.73446 313 893 642 660 Automobiles 178.9 141.8 172.3 '110.2'123.7 91.7 94.1 329.7 240.0 317.9 324.8 '165.5 185.6 129.7 Nonferrous Metals and Products 186.8 159.4 176.3 '128.1'134.3 136.9 351.9 296.4 341.3 343.0 '222.0'234.8 241.3 Primary smelting and refining.. . . 176.1 136.5 143 '125 '126 129 323.2 251.3 264 '222 nil 225 Alloying and rolling, except aluminum 182.3 163.2 182 129 137 141 340.9 302.5 348 355 223 239 247 Aluminum manufactures 312.4 242.2 284 '153 '163 173 560.1 420.0 512 530 '235 '254 267 Lumber and Timber Basic Products. . . . 116. 105.6 110.6 96.3 96.8 98.6 97.2 212.9 190.4 200.1 199.2 169.1 164. 165.6 Sawmills and logging camps 80. 72.9 76 67 67 68 150.2 132.7 139 138 117 114 113 Planning and plywood mills 99. 91.2 97 83 84 86 169.0 156.3 167 167 140 137 142 Furniture and Lumber Products 105.6 98.0 103.3 89.8 93.6 98.1 101.6 190.5 180.6 194.0 161.9 166.5 180.7 Furniture 99.2 90.4 96 82 85 90 178.6 165.8 180 180 147 151 164 Stone, Clay and Glass Products 114. 109.8 111.6 109.8 107.4 111.0 113.0 190.2 186. 192.1 189.0 184.9 177.4 186.1 Glass and glassware 129.5 122.4 126 124 110 113 205.4 195.4 204 202 196 171 184 Cement 72.9 75.2 69 85 85 89 112.0 122.4 114 107 139 135 137 B Po ri t c t k e , r y t il a e n , d a n re d l a t t e e r d r a p c ro o d tt u a cts 1 7 2 5 3 . . 6 8 11 75 6 . . 3 9 1 7 1 3 9 11 7 7 9 1 8 2 3 0 * 1 8 2 8 3 1 1 9 2 0 0. . 8 4 1 1 2 8 6 4 . . 6 4 1 1 1 9 8 4 1 1 1 8 7 5 1 1 3 8 3 7 1 1 3 8 9 8 1 19 4 5 8 Textile-Mill and Fiber Products 98.3 92.5 96.0 90.6 91.1 95.3 96.6 173.8 171.5 179.0 176. 168.1 171.3 184.1 Cotton goods except small wares. . 111.0 104.7 109 102 101 107 204.1 204.6 212 210 199 200 216 Silk and rayon goods 75. 72.0 74 71 71 73 136.4 139.4 142 138 143 142 149 Woolen and worsted manufactures 101.1 94.7 98 94 96 99 191.6 184.5 195 194 178 184 200 Hosiery 66.5 61.8 63 62 64 66 105.4 101.0 106 103 105 109 113 Dyeing and finishing textiles 91.9 85.3 90 80 '81 151.4 147.0 157 152 '137 143 164 Apparel and Other Finished Textiles. . . 112.1 102.6 107. 101.0 100.6 100.9 101.7 192.8 185.3 195.0 198. 183.6 177.7 182.6 Men's clothing, n.e.c 96.7 87.1 92 82 81 81 163.6 153.7 165 165 '137 141 Shirts, collars, and nightwear 75.3 69.5 70 70 72 72 131.3 127.2 128 126 131 132 134 Women's clothing, n.e.c 80.6 74.3 79 76 75 75 140.3 136.3 144 149 142 136 141 Millinery 78.3 75.1 80 75 74 75 117 122.3 113 131 135 110 120 Leather and Leather Products 91.3 89.5 90. 90.6 93. 158.4 164.8 163.2 164.7 161. 161. 175.4 Leather 85.0 83.5 84 84 86 90 145.3 148.8 146 147 151 146 162 Boots and shoes 79.8 78.5 79 78 80 82 140. 148.1 146 148 144 146 157 Food and Kindred Products 126.1 120. 119. 125. 121.9 120. 116. 201.5 200.0 207.1 198.0 207. 206. 210.6 Slaughtering and meat packing.. . 130.6 110. 128 105 110 120 216.1 181.4 228 222 173 185 212 Flour 115. 120.9 119 126 125 125 191.0 210. 199 206 '224 '212 222 Baking 112. 110.0 111 110 110 110 166.8 173.5 177 168 177 181 181 Confectionery 116.5 109.4 118 108 111 111 191.1 187. 211 198 188 198 202 Malt liquors '. 139. 144.4 137 151 150 148 202.8 217. 205 195 226 225 227 Canning and preserving 102.£ 98. 78 -125 '93 80 194.3 195. 163 154 252 179 167 Tobacco Manufactures 89 A 87.2 r91. 87, 84. 158. 164. 177. 166.4 rl81. '171. 163.3 Cigarettes 126. 125. 128 131 127 120 192.3 203. 223 211 218 208 185 Cigars 70. 65.5 65 71 68 69 138 136. 147 134 159 149 149 ' Revised. 1 Annual indexes for 1945 were computed by the Board of Governors and are preliminary. NOTE.—Indexes for major groups and totals have been adjusted to final 1943 data made available by the Bureau of Employment Security of the Federal Security Agency. Back data and data for industries not here shown are obtainable from the Bureau of Labor Statistics. Underlying figures are for pay roll period ending nearest middle of month and cover wage earners only. Figures for" January 1946 are preli minary. 326 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FACTORY EMPLOYMENT AND PAY ROLLS, BY INDUSTRIES—Continued (Without Seasonal Adjustment) [Index numbers of the Bureau of Labor Statistics, 1939=100] Factory employment Factory pay roll Industry Group or Industry Annual 1945 1946 Annual 1944 1945 Jan. Oct. Nov. Dec. Jan. 1944 19451 Dec. Jan. Oct. Nov. Dec. Paper and Allied Products 119.7 116.9 118.5 117.5 119.3 122.4 123.7 194.2 197.7 200.5 198.3 201.2 204.9 212.2 Paper and pulp 106.5 105.8 107 106 108 111 178.9 183.3 185 183 187 190 197 Paper goods, n.e.c 122.1 115.4 119 115 115 118 193.2 189.9 198 198 184 186 198 Paper boxes 115.6 112.1 112 115 116 118 180.6 184.7 185 182 193 197 203 Printing and Publishing 99.3 99.9 98.8 102.5 105.9 108.1 108.8 134.8 144.3 141.2 139.8 150.7 158.5 163.2 Newspaper periodicals 92.9 94.2 92 97 101 103 116.9 126.1 122 118 133 138 142 Book and job 105.9 106.8 106 110 113 116 150.2 161.9 160 160 169 178 184 Chemicals and Allied Products 211.6 193.4 217.8 '153.5 154.3 153.4 151.8 367.7 338.3 377.9 384.2 r259.6 256.6 258.9 Drugs, medicines, and insecticides 184.0 179.3 179 174 175 177 269.2 274.6 272 273 269 269 276 Rayon and allied products 109.1 112.9 112 115 '118 120 174.2 184.1 180 182 '186 '189 195 Chemicals, n.e.c 170.6 162.8 166 157 159 163 294.2 284.9 291 293 261 261 269 Explosives and safety fuses 1091.4 993.21311 417 '338 277 1673.81510.9 1970 1999 -•636 '•528 474 Ammunition, small-arms 1410.21040.11431 243 264 233 2815.0 2049.0 2633 2915 472 488 437 Cottonseed oil 108.8 104.3 130 119 136 128 217.0 222.1 289 276 265 306 280 Fertilizers 116.9 120.1 123 108 111 118 250.2 275.9 250 269 250 240 256 Products of Petroleum and Coal 123.4 126.6 126.0 '122.8'130.7 131.3 133.5 213. 222.5 221.9 221.7 '196.8 '223.4 221.9 Petroleum refining 121.0 126.3 126 122 131 131 206.4 217.1 215 216 '190 '218 214 Coke and by-products 105.3 101.7 102 '100 '103 106 184.2 184.3 182 189 '163 '184 193 Rubber Products 163.8 153.8 164.9 '144.3'149.2 156.5 159.1 292.7 274.8 308.5 323.2 r237.0 r239.8 255.7 Rubber tires and inner tubes... . 170.2 167.1 179 163 169 178 293.0 279.8 319 342 240 240 257 Rubber goods, other 140.7 128.6 138 115 119 124 252.0 234.2 256 261 202 207 223 Miscellaneous Industries 173.0 154.2 167.8 130.3 133.4 137.6 140.3 330.1 292.8 332.2 334.3 229.1 '236.1 250.0 L». Instruments, scientific 566.4 414.9 532 216 202 203 1075.0 771.1 1058 1057 346 '325 336 Photographic apparatus 167.2 147.0 162 120 125 130 271.9 243.1 259 278 189 198 203 For footnotes, see page 326. FACTORY EMPLOYMENT (Adjusted for Seasonal Variation) [Index numbers of the Board of Governors, 193.9 =1001 1944 1945 1946 Group Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Total 163.0 162.9 162.5 160.6 157.6 154.5 151.0 145.5 141.1 121.4 '120.6 121.2 121.3 P122.7 Durable 219.7 219.8 219.1 215.9 210.3 204.1 196.7 187.6 180.0 138.3 '136.1 136.4 134.4 P136.0 Nondurable 118.3 118.0 117.8 117.1 116.1 115.4 115.0 112.3 110.3 108.1 '108.4 '109.3 111.0 J»112.2 ' Revised. v Preliminary. NOTE.—Back figures from January 1939 may be obtained from the Division of Research and Statistics. ' HOURS AND EARNINGS OF WAGE EARNERS IN MANUFACTURING INDUSTRIES [Compiled by the Bureau of Labor Statistics] Average hours worked per week Average hourly earnings (cents per hour) Industry Group 1944 1945 1945 Nov. Dec. Aug. Sept. Oct. Nov. Dec. Nov. Dec. Aug. Sept. Oct. Nov. Dec. All Manufacturing. . . 45.3 45.6 40.7 41.4 '41.6 '41.2 41.6 103.5 104.0 102.4 95.7 98.5 '99.1 99.7 Durable Goods 46.7 47.1 41.1 41.0 '41.6 '41.1 41.5 113.6 114.0 111.3 107.2 106.3 106.9 Iron and Steel and Products 46.8 47.4 41.7 41.8 '42.1 '42.0 42.4 108.9 109.5 110.9 108.9 '107.8 '108.1 109.1 Electrical Machinery 46.3 46.6 41.2 40.8 41.1 '41.2 41.5 104.9 105.9 103.8 101.4 103.1 '104.4 105.8 Machinery Except Electrical 48.2 48.9 42.7 43.0 '43.0 42.6 42.9 113.4 114.6 113.4 111.9 111.8 '112.4 113.4 Transportation Equipment Except Autos. 47.8 48.4 41.7 38.8 '39.1 37.4 39.8 131.8 130.9 129.7 126.4 '125.0 '124.7 124.7 Automobiles 45.5 45.7 33.5 36.5 '38.4 '38.3 36.1 128.0 127.9 124.5 122.4 '121.9 '122.0 122.2 Nonferrous Metals and Products 46.9 47.6 43.3 42.5 '43.2 '43.2 43.4 105.8 106.9 106.7 104.4 '104.8 105. i- 106.3' Lumber and Timber Basic Products 43.0 42.3 40.5 40.8 42.2 40.6 39.2 79.1 79 81.3 81.9 78.4 78. i 81.0 Furniture and Finished Lumber Products. 44.4 44.3 40.6 42.3 42.7 '42.1 42.8 83.3 84.4 83.5 83.3 '84.1 '84.4 85.2 Stone, Clay, and Glass Products 44.1 44.1 41.6 41.8 42.5 42.1 42.1 91.0 91.3 93.9 93.7 93.2 92. 94.0 Nondurable Goods. 43.2 43.5 40.3 41.8 '41.5 41.3 41.7 87.7 88.3 90.9 90.3 9Q.9 '91.8 92.8 Textiles—Mill and Fiber Products 42.3 42.8 38.4 40.6 40.4 40.3 40.7 72.2 72.5 77.0 76.3 '77.3 '78.6 79.5 Apparel and Other Finished Products.... 38.0 37.7 33.2 36.2 '36.7 '36.0 36.4 82.4 83.1 84.6 87.8 87.5 86.4 87.6 Leather and Manufactures 41.2 41.6 39.3 40.6 40.9 39.6 40.6 81.9 82.4 85.7 85.3 85.2 85.7 88.1 Food and Kindred Products 45 46.0 43.3 44.7 '44.1 44.4 45.4 85.9 86.5 88.2 88.0 89.5 90.8 91.6 Tobacco Manufactures 44.2 45.0 39.0 42.3 42.0 40.4 39.1 73.5 73.8 76.5 78.6 79.3 80.7 80.6 Paper and Allied Products 46.6 44.0 45.9 45.8 45.7 45.5 86.3 86.4 88.0 89.3 '89.7 '90.2 91.1 Printing, Publishing and Allied Industries. 41.4 40.7 42.2 41.6 41.7 41.5 110.4 110.8 114.4 115.8 115.5 ••117.1 118.6 Chemicals and Allied Products 45.7 43.4 43.4 43.3 '42.7 42.7 95.6 96.4 100.3 99.2 '99.1 »-98.9 100.2 R Pr u o b d b u e c r t s P o ro f d P u e c t t r s oleum and Coal 4 4 6 7 . . 6 1 4 4 1 6 . . 8 9 4 4 3 4. . 9 0 '4 4 2 1 . . 6 4 '4 4 4 0 . . 1 2 4 40 3 . . 8 1 1 1 1 1 8 0 . . 6 7 1 1 2 1 0 3 . . 0 0 1 1 1 2 1 2. . 2 9 1 1 2 0 1 9 . . 7 8 ' ' 1 1 2 1 0 0 . . 4 0 'n12n2..o0 1 1 2 1 3 1 . . 7 2 Miscellaneous Industries 45.5 45.7 41.8 42.2 42.0 '42.1 42.4 97.5 98.5 97.5 95.1 95.7 '96.3 98.4 ' Revised. NOTE.—Back figures are available from the Bureau of Labor Statistics. MARCH 1946 327 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ESTIMATED EMPLOYMENT IN NONAGRIGULTURAL ESTABLISHMENTS, BY INDUSTRY DIVISION [Thousands of persons] Transporta- Finance, Federal, Year and month Total Ma tu n r u i f n a g c- fining Co t n io st n r * uc- ti p o u n b a li n c d Trade an s d e r m vi i c s e c , el- Sta l t o e c , a l and utilities laneous government 1939 30,353 10,078 845 1,753 2,912 6,618 4,160 3,988 1940 31,784 10,780 916 1,722 3,013 6,906 4,310 4,136 1941 35,668 12,974 ' 947 2,236 3,248 7,378 4,438 4,446 1942 38,447 15,051 970 2,078 3,433 7,263 4,447 5,203 1943 39,728 16,924 891 1,259 3,619 7,030 4,115 5,890 1944 38.698 16,121 835 679 3,761 7,044 4,348 5,911 1945 ^36,982 P13.899 P779 P833 P3.822 P7.173 P4.589 *5,887 SEASONALLY ADJUSTED 1941—September 36,774 13,580 1,000 2,327 3,331 7,548 4,454 4,534 October 36,892 13,642 1,003 2,295 3,355 7,537 4,472 4,588 November 36,991 13,752 1,004 2,248 3,369 7,526 4,479 4,613 December 36,864 13,748 1,002 2,115 3,367 7,487 4,493 4,652 1942—January 37,057 13,879 996 2,102 3,372 7,481 4,520 4,707 February 37,195 14,041 981 2,090 3,357 7,414 4,491 4,821 i March. 37,391 14,255 976 2,055 3,382 7,331 4,523 4,869 April 37,724 14,463 982 2,054 3,402 7,319 4,541 4,963 May 37,981 14,649 982 2,048 3,419 7,280 4,521 5,082 June 38,204 14,865 981 2,057 3,419 7,206 4,532 5,144 July 38,581 15,143 982 2,077 3,433 7,210 4,520 5,216 August 39,042 15,442 973 2,101 3,448 7,222 4,518 5,338 September 39,171 15,644 962 2,077 3,448 7,227 4,382 5,431 October 39,452 15,798 954 2,136 3,484 7,224 4,330 5,526 November 39,597 16,048 944 2,095 3,503 7,132 4,255 5,620 December 39,898 16,333 933 2,041 3,525 7,136 4,229 5,701 1943—January 39,934 16,506 927 1,899 3,540 7,133 4,146 5,783 February 39,935 16,682 924 1,734 3,556 7,064 4,146 5,829 March 40,066 16,831 915 1,604 3,574 7,110 4,121 5,911 April 39,891 16,858 908 1,476 3,588 7,006 4,110 5,945 May 39,740 16,837 893 1,358 3,597 6,988 4,102 5,965 June 39,775 16,908 893 1,263 3,620 7,017 4,112 5,962 July 39,876 17,059 888 1,164 3,634 7,061 4,127 5,943 August 39,737 17,097 878 1,082 3,639 7,015 4,110 5,916 September 39,475 17,051 876 1,020 3,633 7,006 4,079 5,810 October 39,486 17,108 869 936 3,671 7,006 4,078 5,818 November 39,526 17,152 859 891 3,683 7,000 4,119 5,822 December 39,479 16,995 863 .864 3,687 6,962 4,127 5,981 1944—January 39,454 16,910 862 830 3,720 7,096 4,170 5,866 February 39,352 16,819 862 786 3,780 7,043 4,173 5,889 March 39,123 16,642 852 737 3,780 7,046 4,165 5,901 April 38,865 16,391 848 719 3,763 6,982 4,257 5,905 May. 38,749 16,203 843 673 3,768 6,997 4,363 5,902 June 38,766 16,093 848 677 3,765 7,012 4,475 5,896 July 38,700 16,013 833 653 3,753 7,084 4,505 5,859 August 38,654 15,943 830 648 3,762 7,059 4,514 5,898 September 38,400 15,764 822 627 3,735 7,065 4,488 5,899 October 38,159 15,614 812 609 3,748 7,077 4,384 5,915 November 38,044 15,529 808 611 3,771 7,052 4,359 5,914 December 38,164 15,554 802 619 3,789 7,015 4,304 6,081 1945—January 38,426. 15,633 805 633 3,797 7,210 4,394 5,954 February 38,469 15,595 802 658 3,848 7,164 4,404 5,998 March 38,456 15,445 796 691 3,846 7,214 4,438 6,026 April 37,963 15,178 765 736 3,811 7,004 4,466 6,003 May 37,746 14,885 732 782 3,802 7,056 4,513 5,976 June 37,465 14,534 798 828 3,792 7,039 4,521 5,953 July 37,231 14,130 784 868 3,801 7,117 4,558 5,973 August 36,888 13,762 780 858 3,803 7,121 4,597 5,967 September 35,151 12,022 780 883 3,774 7,215 4,603 5,874 October '35,029 ••11,893 714 940 '3,806 '7,258 4,745 5,673 November »-35,330 '11,906 '789 '984 '3,870 '7,312 4,894 5,575 December 35,630 11.876 798 1,075 3,916 7,345 4.936 5,684 1946—January 36,221 12,054 814 1,190 3,946 7,674 5,016 5,527 UNADJUSTED 1944—July 38,731 16,013 833 686 3,809 6,942 4,618 5,830 August 38,744 16,023 834 700 3,818 6,918 4,582 5,869 September 38,571 15,843 826 671 3,791 6,994 4,488 5,958 October 38,360 15,692 816 652 3,767 7,148 4,340 5,945 November 38,347 15,607 812 629 3,771 7,299 4,315 5,914 December 38,889 15,632 806 594 3,770 7,611 4,304 6,172 1945—January 37,952 15,555 801 582 3,740 7,030 4,350 5,894 February 37,968 15,517 798 599 3,771 6,985 4,360 5,938 March 38,062 15,368 796 636 3,788 7,084 4,394 5,996 April 37,791 15,102 761 699 3,792 6,990 4,444 6,003 May 37,679 14,811 728 798 3,802 7,021 4,513 6,006 June... . .* 37,549 14,534 794 845 3,830 7,004 4,589 5,953 July 37,273 14,130 784 911 3,858 6,975 4,672 5,943 August 36,984 13,831 784 927 3,860 6,979 4,666 5,937 September 35,321 12,082 784 945 3,831 7,143 4,603 5,933 October '35,231 '11,952 718 1,006 '3,825 '7,331 4,698 5,701 November '35,631 '11,966 '793 '1,014 '3,870 '7,568 4,845 5,575 December 36,339 11,935 802 1,032 3,896 7,969 4,936 5,769 1946—January , 35,706 11,994 810 1,095 3,887 7,482 4,966 5,472 * Includes Contract Construction and Federal Force Account Construction. ' Revised. P Preliminary NOTE.—Unadjusted data compiled by Bureau of Labor Statistics. Estimates include all full- and part-time wage and salary workers in nonagricultural establishments employed during the pay period ending nearest the 15th of the month. Proprietors, self-employed persons, domestic servants, and personnel of the armed forces are excluded. January 1946 figures are preliminary. For back seasonally adjusted estimates see BULLETIN for June 1944, p. 600. Back unajusted data are available from the Bureau of Labor Statistics. 328 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CONSTRUCTION CONTRACTS AWARDED, BY TYPE 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 Total R b e u si i d ld e i n n t g ial P a u n b d l ic p u w b o li r c ks Month Factories Commercial Educational Other utilities 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 January 159.2 140.9 41.0 19 5 34.0 45.2 4.1 7 5 8 7 4 9 21 1 23 9 50 3 39 8 February 137.2 147.0 24.9 19.3 29.9 66.6 4.5 8.5 1-0.2 3.0 23.1 17.6 55.1 32.0 March 176.4 328.9 35 2 26 9 48.7 160.4 7.4 10 0 4 4 4 6 19 5 36 3 61 3 90 6 April 179.3 395.8 37.8 42.7 33.0 174.5 6.1 12.3 5.4 4.3 25.0 49.9 72.0 111.9 May 144.2 242.5 34.5 47.2 27.1 43.4 5.8 9.5 3.8 5.1 17.1 29.4 55.8 107.9 June 163.9 227.3 30.6 41 8 24.4 25.5 8.7 18 8 10 5 10 5 18 9 35 6 70 7 95.0 July 190.5 257.7 25.8 46.3 38.3 51.5 5.6 19.8 10.1 13.4 30.2 36.9 80.5 89.9 August 169 3 263 6 23 3 42 7 40.0 75.5 7.9 25 5 6 4 10 4 22 4 32 0 69 4 77.5 September 175.7 278.3 24.5 42.6 49.0 98.3 6.4 45 5 7.6 10 2 24 2 27 0 64 1 54.6 Qctober 144.8 316.6 23.8 59.9 37.7 85.4 7.7 60.8 3.5 18.6 20.0 30.8 52.2 61.1 November 164.9 370 1 23 3 88 4 52.9 107.9 7.1 62 8 5 3 7 0 28 3 30 0 48 0 74.0 December 188.5 330.7 23.9 86.1 57.6 92.6 9.5 65.5 3.8 8.2 27.1 27.3 66.6 51.0 Year 1,994.0 3,299.3 348.4 563.5 472.7 1,027.0 80.8 346 A 69.2 100.2 276.7 376.8 746.1 885.4 Negative because of revision of a prior month's entry. CONSTRUCTION CONTRACTS AWARDED, BY OWNERSHIP CONSTRUCTION CONTRACTS AWARDED, BY DISTRICT [Figures for 37 States east of the Rocky Mountains, as reported by the [Figures for 37 States east of the Rocky Mountains, as reported by the F. W. Dodge Corporation. Value of contracts in millions of dollars] F. W. Dodge Corporation. Value of contracts in thousands of dollars] Total Public ownership Private ownership 1946 1945 Federal Reserve district Month 1944 1945 1946 1944 1945 1946 1944 1945 1946 Jan. Dec. Jan. J A J F A M M J u u a e u p a a n l n b y r g y r e i u r u c l u h a st a ry ry .. . . . . . 1 1 1 1 1 1 1 1 5 7 3 6 6 7 4 9 9 6 7 9 4 9 4 1 3 3 2 2 2 1 2 1 2 2 4 6 4 9 4 5 9 7 3 4 1 6 7 8 358 1 1 1 1 1 1 1 9 2 2 2 3 4 0 3 8 5 2 2 3 8 9 3 2 3 1 1 2 8 0 6 4 0 7 7 1 2 9 7 8 8 5 4 47 4 4 4 4 3 4 2 4 3 2 2 4 7 6 8 6 1 1 1 1 9 6 8 0 4 4 9 7 5 6 7 7 9 6 6 3 311 A S N C P R C B t h l i e o t h . e c l i w s i a l v h L t c a n o e m o d a Y t n l u e a a g o o i l n n o s p r d d k . h . i . a . . .. 3 3 3 2 5 7 1 1 9 0 1 6 4 0 8 9 , , , , , 3 1 6 5 8 5 0 6 3 5 3 6 8 1 5 7 0 6 5 5 7 8 9 5 4 3 3 6 3 4 1 1 0 3 3 0 5 9 4 3 , , , , , , , 1 3 7 2 6 3 4 8 8 8 1 2 5 1 8 8 9 8 7 6 2 1 4 9 2 2 1 1 5 6 9 8 2 8 0 9 , . , , , , , , 7 8 6 7 3 4 5 1 3 2 1 2 9 2 4 5 1 1 6 5 3 9 0 2 S O N e c o p t v o t e e b m m er b b e e r r . . . . 1 1 1 4 6 7 5 5 6 3 2 3 1 7 7 7 8 0 1 1 1 0 2 0 2 7 3 4 6 6 3 1 1 4 4 6 9 3 2 2 2 3 3 5 0 5 6 9 M K Da a in l n l n s a a e s s a p C o i l t i y s 3 1 1 4 8 3 , , , 0 9 6 8 2 6 7 9 0 2 1 1 2 2 4 , , , 8 4 5 4 1 6 8 3 8 1 1 2 1 5 , , , 6 2 6 9 1 2 8 6 8 December. . 188 331 114 62 74 269 Total (11 districts) 357,501 330,685 140,949 Year 1,994 3,299 1,435 1,311 559 1,988 NOTE.—Data for most recent month preliminary. LOANS INSURED BY FEDERAL HOUSING ADMINISTRATION INSURED FHA HOME MORTGAGES (TITLE II) HELD IN [In millions of dollars] PORTFOLIO, BY CLASS OF INSTITUTION [In millions of dollars] Year or month Total p P m T e r i r o m i r e o t t v l n y - p e e t - - I L s S h o c t t m o i r o a o u m n n a n c s - l e - l 1 f h ( a - o T m I t u D i o t s i l l e e y 4 M s - o h r R g t ( o g T a r e I u a o n n D i s g t u d t i l n e a p e s l g o h n ( o W T V u i I s a t ) i l r n e g 19 E 3 n 6 d — o D f e m c. onth To 36 ta 5 l b C m c a o 2 i n e a 2 m r k 8 l - s - b M s i t a n u a n g v u a k s - l - 8 s a a S l s i t a o n i s a n o o a g 5 v d n n c 6 s - s i- I p c a n a o n s n m u c 4 i 1 e r e - - s a F c e g i e r e e a d s n l 5 - 1 - Oth 2 e 7 r' 1937—Dec. 771 430 27 110 118 32 53 1938—Dec. 1,199 634 38 149 212 77 90 1935 320 224 94 2 1936 . 557 246 309 2 1939—June 1,478 759 50 167- 271 137 94 1937 495 60 424 11 Dec 1,793 902 71 192* 342 153 133 1938 694 160 13 473 48 1939 954 208 25 669 51 1940—Mar 1,949 971 90 201 392 171 124 1940 1,026 251 26 736 13 June 2,075 1,026 100 208 432 182 127 1941 1,186 262 21 877 13 13 Sept 2,232 1,093 111 216 480 190 141 1942 1,137 141 15 691 6 284 Dec 2,409 1,162 130 224 542 201 150 1943 . . . 942 96 1 243 * 601 1944 886 125 216 7 537 1941—Mar 2,598 1,246 146 230 606 210 160 1945 684 189. 219 3 272 June 2,755 1,318 157 237 668 220 154 Sept 2,942 1,400 171 246 722 225 178 1945—Jan 67 8 * 19 39 Dec. 3,107 1,465 186 254 789 234 179 Feb 68 19 14 * 34 Mar 60 13 * 17 30 1942—Mar 3,307 1,549 201 264 856 237 200 Apr 53 10 15 28 June 3,491 1,623 219 272 940 243 195 May 62 14 * 22 26 Dec 3,620 1,669 236 276 1,032 245 163 June 56 13 19 24 July 52 12 *' 19 * 21 1943—June 3,700 1,700 252 284 1,071 235 158 Aug 45 12 * 18 * 15 Dec. 3,626 1,705 256 292 1,134 79 159 Sept 44 11 * 16 2 14 Oct 62 26 * 19 * 17 1944—June 3,554 1,669 258 284 1,119 73 150 Nov 60 28 * 21 11 Dec. 3,399 1,590 260 269 1,072 68 140 Dec 55 23 * 20 1 11 1945—June 3,324 1,570 265 264 1,047 43 134 1946—Jan 56 17 * 27 12 Dec 3,156 1,506 263 253 1,000 13 122 xThe RFC Mortgage Company, the Federal National Mortgage •Less than $500,000. Association, the Federal Deposit Insurance Corporation, and the NOTE.—Figures represent gross insurance written during the period United States Housing Corporation. and do not take account of principal repayments on previously insured 'Including mortgage companies, finance companies, industrial banks, loans. Figures include some reinsured mortgages, which are shown in endowed institutions, private and State benefit funds, etc. the month in which they were reported by FHA. Reinsured mortgages NOTE.—Figures represent gross amount of mortgages held, excludon rental and group housing (Title II) are not necessarily shown in the ing terminated mortgages and cases in transit to or being audited at the month in which reinsurance took place. Federal Housing Administration. 329 MARCH 1946 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MERCHANDISE EXPORTS AND IMPORTS [In millions of dollars] Merchandise exports1 Merchandise imports2 Excess of exports Month 1941 1942 1943 1944 1945 1941 1942 1943 1944 1945 1941 1942 1943 1944 1945 January 325 482 749 1,124 P903 229 254 229 301 P334 96 228 520 823 P569 February 303 483 728 1,107 P887 234 254 234 314 P325 69 230 494 793 P561 March 357 637 988 1,197 Pl,030 268 272 249 359 P365 89 365 739 838 P665 April 387 717 989 1,231 Pl,005 287 235 258 361 P366 100 482 731 869 P639 May 385 542 1,092 1,455 Pl,135 297 191 281 386 P372 88 351 811 1,069 P763 June 330 650 1,003 1,297 P87O 280 215 295 332 P360 50 435 708 965 July 365 659 1,265 1,197 P893 278 213 302 294 P356 87 446 963 903 P537 August 460 705 1,280 1,191 P737 282 186 316 304 P360 178 518 964 887 P378 September.... 425 732 1,269 1,194 P514 262 196 286 282 P335 162 536 983 912 P180 October 666 803 1,238 1,144 P455 304 200 329 329 P344 362 603 909 815 Pill ' November. . . . 492 788 1,073 1,187 P639 281 168 311 323 P322 211 620 762 863 P317 December 653 883 1,288 939 P736 344 358 281 336 P301 309 525 1,006 603 P434 Jan.-December 5,147 ;,080 12,963 14,261 P9,805 3,345 2,742 3,372 3,921 P4,140 1,802 5,338 9,591 10,341 P5,665 p Preliminary. 1 iInncclluuddiinngg Dbootthn ddoommeessttiicc aanndd rfoorreeiiggnn mmeerrccnhaannddiissee.. o fG"**~e«.n~—e i rai l im-.— jp,— ori ts,i ini: clud—i. ng im e- rcI- handiJ se eJn ti-_ered for immediate consumption and that entered for storage in bonded warehouses. Source.—Department of Commerce. Back figures.—See BULLETIN for April 1940, p. 347; February 1937, p. 152; July 1933, p. 431; and January 1931, p. 18. FREIGHT CARLOADINGS, 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 GrainL s i t v o e c - kp u e r c s o t t d s - Ore l c o a e u l n - s e- c l d h . i c a s . n l e - . r T a o il t w a a l y r T a o i t lw a a l y ra N i e l t way Net operating operating income Annual revenues expenses income 1939 101 98 102 107 96 10~) 110 101 97 1940 109 111 137 101 96 114 147 110 96 1941 130 123 168 112 91 139 183 136 100 Annual 1 1 9 9 4 4 2 3 1 1 3 3 8 7 1 1 3 3 8 5 1 1 8 8 1 6 1 14 2 6 0 1 11 0 7 4 1 14 5 1 5 2 1 0 9 6 2 1 14 4 5 6 6 6 3 9 1 1 9 9 3 4 9 0 4 3 , , 2 9 9 9 7 5 3 3, , 6 4 1 0 4 6 5 6 8 8 9 2 1 9 8 3 9 1 1 9 94 4 5 4 1 1 3 4 5 0 1 1 4 3 3 4 1 1 8 7 5 2 1 1 3 5 9 1 1 1 2 2 4 4 1 1 2 4 9 3 1 1 6 8 9 0 1 1 4 4 7 2 6 6 7 8 1 1 1 9 9 9 4 4 4 3 2 1 9 5 7 , , , 0 3 4 5 4 6 5 7 6 5 4 7 , , , 9 3 6 8 9 4 2 3 8 1 1 , , 9 4 3 8 6 9 5 2 8 9 5 8 0 0 7 2 0 4 SE A A D S J O U N ST A E L D LY 1 1 9 9 4 4 5 4 . . P 9 8 ,9 4 0 3 2 7 8 8 , , 3 0 4 5 3 2 1, P 0 8 9 5 3 0 P 6 4 6 50 8 1944—November 141 142 181 150 135 138 153 149 68 SEASONALLY December. 137 127 166 134 128 135 133 151 68 ADJUSTED 1945—January.., 144 141 176 128 120 142 161 157 66 1944—October 791 709 82 46 F M e a b r r c u h a . ry . . . , , 1 1 4 3 5 9 1 1 3 3 7 9 1 1 9 7 0 8 1 1 3 1 4 9 1 12 2 1 9 1 13 3 3 4 2 1 1 6 8 8 1 1 5 5 9 2 6 6 6 7 D N e o c v e e m m b b e e r r . . . . 7 7 8 8 8 0 6 7 9 1 7 1 9 6 1 9 5 3 7 3 J A S O D A J M N u u e e p c u o a n l p c t y r v g y e o t i e e l u e b m m m s e t b b r b . . . e e e r r . r . . . , . 1 1 1 1 1 1 1 1 1 4 3 2 3 4 2 4 1 2 1 3 8 9 0 7 0 8 7 1 1 1 1 1 1 1 1 1 4 4 0 4 2 3 2 2 3 3 3 9 8 6 6 8 6 3 1 1 1 1 1 1 1 1 1 8 9 1 5 9 6 6 8 6 1 3 3 5 3 7 7 0 4 1 1 1 1 1 1 1 1 1 5 5 6 4 6 6 6 5 5 5 7 7 6 7 3 0 8 3 1 1 1 1 1 1 1 1 1 2 2 2 2 4 1 2 1 4 1 1 0 3 5 5 4 4 0 1 1 1 1 1 1 1 1 1 3 2 3 3 0 4 0 4 1 3 5 7 3 9 4 6 0 0 2 2 1 1 1 1 1 1 1 7 0 0 6 7 3 1 7 3 1 4 4 6 4 4 7 0 4 1 1 1 1 1 1 1 1 1 5 3 2 3 2 4 4 5 3 1 2 6 3 5 6 6 3 0 6 6 6 6 6 6 7 7 7 7 6 9 9 8 4 1 4 4 1945—J J A A S M J F M a p u e u u e a a n r l b g p n r u y i y r e u t a c l u s e r h a t m y r . b . y e . . . r . . . . . . . 8 7 6 7 7 7 7 7 7 3 9 9 6 8 9 9 0 9 1 1 1 6 1 6 9 5 6 6 6 6 6 6 6 7 7 7 9 7 9 5 2 7 4 0 0 8 3 6 5 5 8 8 4 4 1 1 9 9 9 9 5 9 3 0 0 6 8 2 5 7 3 6 6 3 5 6 6 2 6 6 6 7 4 7 0 2 2 8 3 1 1 1946—January.. «3 148 127 152 126 122 118 134 78 October.... 657 620 37 5 November.. 668 608 61 P27 UNADJUSTED December. 628 P674 p-36 1944—November, 144 142 181 147 170 135 138 155 70 UNADJUSTED December. 128 127 175 126 124 120 41 142 65 1944—October 818 720 98 60 1945—January. . , 132 141 185 128 115 128 40 '144 63 November.. 780 689 91 64 February. , 130 139 188 117 97 128 42 142 64 December.. 757 687 70 41 A M p a r r il c h. . . , , 1 13 3 9 6 1 1 3 2 7 6 1 1 9 7 2 6 1 14 2 1 4 1 11 0 1 2 1 1 3 3 4 3 2 6 0 3 3 1 1 5 5 1 1 6 7 8 1 1945—January.. . . 751 678 73 39 J D J A S O M N u u e e c o u n a l p c y t v g y e o t e e e u b m m m s e b t b r b . e . e . e . r r . r . , , 1 1 1 1 1 1 1 1 4 4 4 3 1 3 3 2 2 5 3 2 9 7 6 8 1 1 1 1 1 1 1 1 2 3 4 4 0 2 3 4 6 6 3 3 9 8 3 8 1 1 1 1 1 1 1 1 9 8 1 6 6 7 7 5 1 7 1 0 7 2 8 4 1 1 1 1 1 1 1 1 4 8 7 5 6 5 6 4 7 8 6 8 3 8 4 4 1 1 1 1 1 1 9 9 0 0 3 8 8 5 7 9 8 9 5 3 9 0 1 1 1 1 1 1 1 4 9 4 4 1 4 3 0 3 4 0 9 5 0 5 8 2 2 2 2 2 2 1 6 7 4 1 3 6 6 1 8 3 9 5 6 3 1 4 1 1 1 1 1 1 1 1 5 3 4 2 3 5 3 3 2 3 8 3 9 0 6 6 6 6 6 6 6 7 7 7 9 8 7 5 9 2 5 1 J M A F J A M S O p u e u c u e a a r l b t n g p r y i r o y u e t c l u b s e h a e t m r r . b y . e . . . r . . . . . . . 8 8 7 8 7 6 7 6 7 1 1 2 2 7 7 9 5 9 3 3 0 3 9 9 6 5 7 6 6 7 7 6 6 7 6 6 4 8 2 3 1 9 6 4 2 0 7 3 5 3 9 9 3 4 1 1 9 9 9 7 8 4 0 5 0 2 6 7 3 7 4 0 4 0 3 6 5 6 6 5 6 2 9 7 3 6 5 3 1 6 0 1946—January.. 123 148 133 152 120 109 29 123 74 D N e o c v e e m mb b e e r r . . . . 6 6 6 1 1 4 6 6 5 0 1 0 - 6 3 1 7 P34 r Revised. NOTE.—For description and back data, see pp. 529-533 of the BULLETIN for P Preliminary. June 1941. Based on daily average loadings. Basic data compiled by Associa- NOTE.—Descriptive material and back figures may be obtion of American Railroads. Total index compiled by combining indexes for tained from the Division of Research and Statistics. Basic classes with weights derived from revenue data of the Interstate Commerce data compiled by the Interstate Commerce Commission. Commission. Annual figures include revisions not available monthly. 330 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DEPARTMENT STORE STATISTICS [Based on value figures] MONTHLY INDEXES OF SALES [1935-39 average = 100] Federal Reserve district Year and month United States San Boston Y N o e r w k d P e h lp il h a i - a C la le n v d e- m Ri o c n h d - la A n t t - a c C a h g i o - L S ou t. is M ap i o n l n is e- K C a i n t s y as Dallas F ci r s a c n o - 1919 83 95 84 106 84 73 88 113 93 67 1920 99 110 100 126 106 81 105 126 112 80 1921 92 108 96 120 94 78 90 80 105 117 92 75 1922 94 112 99 122 95 75 85 83 103 112 86 78 1923 105 119 106 135 108 85 94 98 115 120 91 91 1924 105 121 110 134 106 87 91 96 114 119 119 94 93 1925 110 123 116 135 109 92 95 102 120 124 124 98 99 1926 113 127 120 138 110 96 99 106 121 119 123 103 106 1927 114 128 123 133 110 95 100 108 119 117 125 101 107 1928 115 126 124 127 110 95 100 114 120 110 119 103 110 1929 117 128 129 128 116 96 98 116 122 110 117 104 112 1930 108 123 126 118 105 92 91 101 110 105 111 96 104 1931 97 114 116 105 93 86 79 88 97 98 96 81 94 1932 75 90 91 83 68 68 60 67 76 79 74 61 71 1933 73 84 86 80 69 68 62 68 72 76 73 62 68 1934 83 90 91 88 81 81 78 79 83 85 85 76 77 1935 88 92 93 91 86 87 84 86 85 90 89 80 86 1936 100 100 101 102 101 98 97 100 97 99 99 97 100 1937 107 104 106 107 111 105 105 109 106 104 107 105 106 1938 99 100 99 96 96 101 103 98 102 101 100 106 100 1939 106 104 101 104 106 109 113 107 111 106 105 112 109 1940 114 108 106 111 114 120 123 116 119 109 110 117 117 1941 133 126 119 129 138 144 145 135 143 122 127 138 139 1942 150 140 128 143 153 170 162 149 158 133 149 157 169 1943 168 148 135 151 167 194 204 161 179 149 184 212 200 1944 186 162 150 168 182 214 244 176 200 165 205 246 221 1945 207 175 169 184 201 235 275 193 227 186 230 277 244 SEASONALLY ADJUSTED 1944—March 183 155 152 173 183 213 228 168 '193 159 194 244 219 April , '174 157 141 161 166 200 221 166 '185 157 181 237 201 May 183 164 150 168 181 212 233 170 '201 160 192 242 214 June 176 155 144 158 166 208 237 165 189 151 192 239 210 July 189 160 150 169 191 212 262 178 '198 165 212 256 222 August 187 158 152 157 182 215 243 180 207 173 203 253 222 September 187 162 149 170 180 219 247 181 '210 162 200 252 216 October 193 165 151 167 190 228 260 185 '207 158 214 250 229 November '204 168 161 182 204 231 271 189 '213 189 244 258 253 December 196 174 157 170 190 221 258 190 '218 175 208 256 234 1945—January 197 167 149 173 186 r233 268 184 211 181 241 '260 247 February 211 166 165 189 204 238 274 202 '222 208 246 271 257 March 220 193 189 204 222 250 274 207 '233 205 240 269 249 April '182 157 150 162 174 210 234 168 '202 157 199 256 219 May 188 160 156 170 179 210 243 170 '213 162 203 264 234 June , 202 177 169 185 197 235 277 184 220 172 218 268 233 July 218 183 177 198 220 252 300 197 '237 187 243 300 255 August 200 166 165 175 189 235 274 189 225 186 214 272 231 September. . . . '200 167 161 175 187 225 268 193 '232 185 217 278 232 October '212 177 172 184 209 248 292 199 '238 180 241 289 245 November. '225 183 182 202 220 250 298 208 '240 219 265 288 273 December 216 188 181 184 211 237 288 206 239 193 225 287 256 1946—January 226 186 185 205 214 267 307 209 232 211 270 306 263 UNADJUSTED 1944—March 170 144 139 162 167 203 221 159 185 141 182 227 198 April 172 161 137 158 172 194 228 166 183 159 183 228 192 May 178 162 142 161 179 211 228 170 197 162 194 228 200 June 163 144 133 142 157 183 199 160 170 151 177 203 193 July 142 110 100 116 140 152 197 139 154 130 168 194 184 August 157 118 111 123 159 177 216 151 178 153 191 220 202 September.... 196 170 158 173 191 232 257 185 212 184 220 265 225 October 209 184 173 189 204 249 273 197 221 179 225 275 239 November.... 248 207 206 229 244 293 317 231 268 218 263 314 297 December 319 300 269 303 304 372 417 295 333 269 338 417 373 1945—January 156 132 123 133 145 '175 214 147 173 136 178 211 197 February , 171 130 137 149 163 191 236 162 187 144 194 239 217 March 212 187 176 200 214 250 282 200 233 186 233 269 232 April 174 156 142 152 171 193 227 165 192 156 195 228 205 May 183 158 148 163 177 209 238 170 209 164 205 248 219 June 186 165 155 167 187 207 233 178 198 171 200 228 215 July 163 127 118 137 161 181 225 154 185 147 192 228 211 August 168 125 120 136 165 194 244 158 194 165 201 237 210 September 209 176 171 178 199 239 279 197 234 210 239 292 243 October 230 196 196 208 224 271 307 213 255 204 253 318 254 November 274 225 235 255 264 318 348 254 303 252 286 352 321 December 351 322 307 327 338 398 466 320 365 297 367 467 407 1946—January 179 147 154 158 167 200 246 167 191 158 200 248 211 ' Revised. NOTE.—For description and monthly indexes for back years, see pp. 542-561 of BULLETIN for June 1944. 331 MARCH 1946 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DEPARTMENT STORE STATISTICS—Continued SALES, STOCKS, AND OUTSTANDING ORDERS WEEKLY INDEX OF SALES [As reported by 296 department stores in various Federal Reserve [Weeks ending on dates shown. 1935-39 average 100] districts] Without seasonal adjustment Index of stocks Amount (1935-39 average 1942 1943 1944 1945 (In millions of do'lars) = 100) July 11. .. .112 July 10. . ..113 July 8. .. .116 July 14. .. .167 18. . ..105 17. . ..126 15. .. .145 21. . ..157 25. .. .103 24. . ..124 22. .. .138 28. .. .153 Out- Aug. 1. . ..105 31. .. .118 29. .. .132 Aug. 4. . . .167 Sales Stocks stand- Season- 8. . ..122 Aug. 7. . ..131 Aug. 5. . ..137 11. .. .176 (total (end of ing ally Unad- 15. .. .125 14. . ..131 12. .. .148 18. .. .124 for month) orders adjusted justed 22. .. .126 21. .. .146 19. .. .149 25. .. .182 month) (end of 29. .. .142 28. .. .145 26. .. .171 Sept. 1. ...194 month) Sept. 5. . ..165 Sept. 4. . ..169 Sept. 2. . ..194 8. .. .177 12. .. .140 11. .. .156 9. . ..177 15. .. .213 19. .. .152 18. .. .179 16. .. .196 22. .. .220 1939 average... 128 344 99 26. .. .172 25. .. .176 23. .. .193 29. . . .209 1940 average... 136 353 108 101 Oct. 3. . ..183 Oct. 2. . ..175 30. .. .196 Oct. 6. . . .242 1941 average... 156 419 194 120 10. . ..171 9. . ..188 Oct. 7. . ..218 13. .. .245 1942 average... 179 599 263 172 17. . ..166 16. .. .189 14. . ..221 20. .. .237 1943 average... 204 508 530 146 24. .. .172 23. .. .194 21. .. .209 27. . . .233 1944 average... 227 534 560 153 31. . ..168 30. .. .187 28. .. .207 Nov. 3. . . .236 1945 average... 255 564 728 162 Nov. 7 182 Nov. 6 .202 Nov. 4 215 10. .. .261 14. . ..182 13. .. .211 11. .. .231 17. .. .275 1944—June.... 198 523 592 157 150 21. . ..182 20. .. .223 18. . ..252 24. .. .258 July.... 162 517 631 165 148 28. .. .176 27. .. .201 25. .. .236 Dec. 1. .. .326 Aug 198 574 579 172 165 Dec. 5. . ..250 Dec. 4. . ..269 Dec. 2. . ..304 8. .. .401 Sept 234 583 561 161 167 12. . ..295 11. .. .297 9. . ..365 15. ...433 Oct 257 607 577 156 174 19. .. .333 18. . ..321 16. .. .377 22. . . .421 Nov 300 580 613 144 167 26. .. .222 25. .. .274 23. .. .369 29. . ..158 Dec 385 451 P618 138 130 30. .. .123 1945—jan. 198 463 768 148 133 1943 1944 1945 1946 Feb 198 494 819 149 142 T 2 117 Jan 1 110 Jan 6 145 Jan. 5. . 135 Mar 284 524 772 148 151 9. . ..146 8. . ..143 13. .. .166 12. .. .188 Apr 209 566 725 156 162 16. .. .139 15. .. .146 20. .. .160 19. .. .191 May.... 231 591 671 165 170 23. .. .125 22. .. .144 27. . ..161 26. .. '189 June 236 601 697 181 172 30. .. .126 29. .. .137 Feb. 3. . ..163 Feb. 2. . . .196 July.... 191 592 722 189 170 Feb. 6. . ..143 Feb. 5. . ..146 10. . ..172 9. . . .215 Aug 213 625 671 187 179 13. .. .178 12. . ..142 17. . ..176 16.. ..209 Sept 243 620 652 171 178 20. .. .155 19. .. .142 24. .. .177 23. .. .212 Oct 298 624 700 161 179 27. .. . 162 26 146 Mar 3 182 Mar. 2 Nov 334 602 777 150 173 Mar, 6 .150 Mar. 4. .. 153 10 .204 9 Dec 429 462 764 141 133 13. .. .144 11. .. .160 17. .. .214 16. . 20. .. .147 18. .. .172 24. .. .226 23. . 1946—Jan P224 P487 P897 P!56 P140 27. . ..155 25. .. .182 31. .. .230 30. . Preliminary. r Revised. Revised. Back figures.—Division of Research and Statistics. NOTE.—Revised series. For description and back figures see pp 874-875 of BULLETIN for September 1944. SALES BY FEDERAL RESERVE DISTRICTS AND BY CITIES [Percentage change from corresponding period of preceding year] Jan. Dec. Year Jan. Dec. Year Jan. Dec. Year Jan. Dec. Year 1946 1945 1945 19461945 1945 1946 1945 1945 1946 1945 1945 United States. +15 + 10 + 11Clev eland-cont. Chicago +14 +9 -{-10Kansas City— Youngstown.... + 12+ 14 + 15 Chicago + 18 +9 + 11 cont. Boston +12 +8 +9 Erie +21 + 14 + 6 Peoria + 16r+12 '+13 Oklahoma City. . +6 +8 + 12 New Haven. . . +5 +2 +3 Pittsburgh +20 + 16 + 12 Fort Wayne.. . * + 15 + 15 Tulsa +7 +v + 14 N S W N P B P B e p o r w r o e o o r i r w s d i r t v t n l c g o a i g a e e d n r n f s k Y p e i d t e o n o e l r r r d c t k e . . . . . . . . . . [ + + + + + + + + 2 2 1 1 1 2 8 9 6 5 2 1 3 + + + + + + + + 1 1 1 6 8 3 1 7 4 3 0 + + + + + + + + 1 1 1 1 5 9 4 5 4 1 3 3 R W W W G C R B ic h a r a h i h a e l l n a s m e e t e r s i h e i n l m t o g l e i o v i n n h s o n n i g , t d l g r - o l t e S e N o n , a n , . l S S e C . m . . C C . . . . . . + + + + + + + - 1 1 6 1 1 8 8 7 4 7 3 1 + + + + + + + - 1 6 9 5 7 7 2 7 1 + + + + + + + - 1 1 2 1 1 8 9 6 0 0 4 3 I L G T D D F G M n l a e r e r e i d i e n r a s n t l i r e r s n w t a e o n M i d n n a i t H g a o B u R p i k a a n a o y e u e p l e t s i i e . . s d . . . . . s . . . . . . . + + + + + + * + - 2 1 1 9 1 1 1 0 2 5 2 2 3 4 + + + + '+ + + + 1 1 1 1 8 2 7 6 8 2 1 0 3 ' r + + + + + + _| + + 3 _ 1 1 1 1 7 1 7 1 7 5 7 4 2 6 D S S C F S D H a a n h a o l o a o l n r r r a l u e t l p F s s a v A u W t s r e o s a n p n o n C t o r c o r t h i t h n s r c i i o s o . t . i . . .. . . + + + + + + + + 2 2 1 1 8 4 9 9 3 4 8 9 r + + + + + \ + + 1 1 1 2 1 1 2 0 2 v v 4 4 1 • • + + + + + + + + 1 2 1 1 1 1 1 6 3 7 1 5 2 3 Albany....... +60 + 19 +23 Lynchburg + 11 +8 + 15 Madison +18 +6 + 11 Phoenix + 13'+15 + 16 P E N N P S S B B R U h y c o l i u o i e i t l m a h n i r u f w a c c a f g e g g d h i a a c a r n h e l h e Y u a o r e l s k a a s p o c t m e e h e r t e F r a k i t a p d a o . s C y l n i l . e i . s t . . . y . \ . . . + + + + + + + + + + + 3 2 2 3 2 2 3 1 1 2 6 0 1 4 1 6 9 8 5 2 + + + + + + + + + + + 1 1 1 1 1 1 1 6 8 8 7 5 7 0 6 8 0 1 + + + + + + + + + + + 1 1 1 1 1 1 4 8 9 8 8 0 5 4 2 4 4 A J N C C H M R B M tl a W h i o l a i u o c o c a r n a r b . n h k r n m f r t k o i m a s t l t V l i e g s l i o e k n o a b n s o n t g n u g m o v d h r t n g i e o a l , r m l n y e . . . . . . . . . . . . . . . + + + + + + + - - 1 1 1 2 1 1 5 4 1 5 9 8 8 0 7 0 1 + + + + + + + + - - 1 6 7 1 1 1 1 1 8 5 7 2 2 3 4 4 r+ + + + + + + + - - 1 1 1 1 1 1 3 1 1 2 2 9 5 6 0 9 8 S Q S F L L S S E E M t, o p t t o i v a u . . e t u r L r s a i t m t L n L t i l i n o e n s c o o s S p u S v g y v u u R h m i i t f s i l . i i i o l l i s s s i e l e L t c e h A l k o d u r . e . i . s a . . . + + + + + + + * + + + 1 2 1 2 1 1 1 9 0 2 2 0 9 1 5 3 4 + ' + + + + + + + + + 1 1 1 1 1 1 8 6 0 7 1 9 4 0 3 0 i + + + + + + + + + + + 1 1 1 1 1 1 1 1 1 5 2 3 9 2 2 3 1 4 4 4 F L O S S T L B R S S B r a a a o o u a i a e n v n a c s k n c k e s n r e s g e r l n A a D F r k o a r o s m s B n n e r n B i i f a e l d d g i e e e e e g n e e r n a y l o n c a l d c t e a o n i a h s s n d r c d d o in .. o . . + + + + + + + + + - 2 J 1 1 1 1 6 3 8 8 7 7 2 9 5 ' ' ' ' + + ' + + + r + ' + + + + 1 1 1 1 1 1 8 8 8 4 4 5 5 0 5 l + + r + + + ' ' + ' + + + + 1 1 1 1 1 1 9 9 S 2 2 2 3 1 3 3 L T P R W h a r e i e n i a l n l k c d a t e a i o d s n s n e - t g B . l e . . p r a . h r i r . a e . . . .. ' + + + + + 2 3 2 1 1 5 1 7 7 4 + + + + + 1 1 7 5 5 6 4 + + + + + 1 1 7 9 5 6 8 A O T A M a r u t i l l m a g a a m u n n p s d t i a a t o a „ + + + + +2 3 2 2 2 2 5 2 3 4 + + + + + 2 1 1 1 0 5 3 9 5 + + + + + 2 1 1 1 0 9 7 9 1 M D S M i u t n . i l n n u P n e t a h a e u - p a S l o p u l o i p s li . e s r . i o . r . . + + + + 1 1 1 7 5 6 9 r+ + + 1 1 1 1 0 3 5 + + + + 1 1 1 5 3 6 6 S V S S N a a t a o n n l a c l t e p a k J j a o t o o R s e n a o n sa d + + - - 5 7 1 9 5 + + + 1 1 6 5 0 6 + + + + 1 1 1 7 5 3 0 York...: + 17 +4 + 10 Columbus +2 -2 +5Kansas City... +12 + 12 Boise and Macon + 14+ 14 +9 Denver + 18 + 12 + 15 Nampa +7 + 4 + 13 Cleveland.... +15 + 11 + 10 Baton Rouge. . . +33 + 19 + 17 Pueblo * +8 + 10 Portland + 11 -2 +5 Akron + 10 +5 +9 New Orleans. . . +11 +13 +8 Hutchinson... . +9 + 7 + 14 Salt Lake City. . + 17+ 12 + 10 Canton + 12 -2 +2 Bristol, Tenn... + 15+25 + 16 Topeka + 1 +9 +14 Bellingham +20 +6 +9 Cincinnati.... + 15+ 16 + 14 Jackson + 10+ 16 + 14 Wichita + 7 +2 + 3 Everett +20 +8 + 10 Cleveland.... + 14 +7 +8 Chattanooga. . . +22 + 11 + 14 Joplin * +8 + 11 Seattle -1 +8 + 11 Columbus... . + 16+ 15 + 15 Knoxville -5 +2 +8 Kansas City. . . + 13 +7 + 12 Spokane +8 +5 +8 Springfield. . . +7 +2 +4 Nashville + 19+ 18 + 17 St. Joseph + 17 0 + 10 Tacoma + 1+ 13 + 14 Toledo +4 +8 +8 Omaha + 16 + 13 + 11 Yakima +3 '+4 + 7 " Revised. Data nut avaiiauie. 332 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DEPARTMENT STORE STATISTICS—Continued SALES AND STOCKS, BY MAJOR DEPARTMENTS Per cent change from a year ago (value) Ratio of stocks to sales Department N of u m sto b r e e r s Sales during period S o to f c m ks o n ( t e h n ) d December reporting D 19 e 4 c 5 . Y 19 e 4 a 5 r 1 D 9 e 4 c 5 . 1945 1944 GRAND TOTAL—entire store 348 +11 +12 +2 1.1 1.2 MAIN STORE—total 348 +11 + 12 +2 1.1 1.2 Women's apparel and accessories 345 +2 + 13 +3 1.1 1.0 C D o re a s t s s e a s nd suits 3 32 3 5 0 _2 + + 1 1 9 4 -10 0 1 . . 9 9 1 1 . . 1 9 Blouses, skirts, sportswear, etc 310 +5 +20 + 14 1.1 1.1 J In u f n a i n o t r s s ' ' w an e d a r girls' wear 3 3 0 0 2 6 + 14 + + 1 9 8 + + 1 1 5 8 1 1. . 2 4 1 1. . 2 1 Aprons, housedresses, uniforms 281 + 11 + 11 + 1 1.1 1.2 Underwear, slips, negligees 322 +8 -15 0.4 0.4 Corsets, brassieres. 329 +4 +21 +24 2.0 1.7 G H l o o s v ie e r s y (w (w o o m m e e n n 's ' s a a n n d d c c h h il i d ld re re n n 's ' ) s) 3 32 3 1 7 +8 + 12 0 -4 -2 1 0 0. . 6 4 0 0. . 7 6 Shoes (women's and children's) 238 + 7 + 18 -11 1.6 2.1 Furs 266 -31 + 7 +23 1.9 Neckwear and scarfs 240 + 7 + 10 +20 Handkerchiefs 275 + 16 +8 +31 M Ha il n l d in b e a r g y s and small leather goods 2 1 9 6 8 3 + + 1 3 8 + + 1 1 3 0 + + 1 4 8 0 1 . . 8 0 0 0 . . 9 8 +8 Men's and boys' wear 317 + 7 +14 -36 0.6 1.1 Men's clothing 226 + 11 + 18 -64 0.7 2.1 Men's furnishings, hats, caps 297 + 12 + 14 -31 0.4 0.7 Boys' clothing and furnishings 276 + 7 +9 -7 1.2 1.4 Men's and boys' shoes and slippers 172 + 15 +24 -31 1.0 1.9 Hom D M F D e u o r a f a r m j u n p o i e r e r t n s r u i t h i i e r s c o e s h u , , f i s l c b n e o u e h o g d r o r s t s l a , c d i o n m a v s p a e , t r p u t i l r n p i e a g h s n s o s c e l e s s s t , e s ry prings 3 2 2 2 1 3 6 2 0 7 1 8 9 8 9 + + + -\ + - + 1 2 1 3 4 5 9 4 3 2 + + + 1 + - 1 0 4 1 6 9 7 3 + + + + + 5 1 4 9 4 8 2 2 2 2 . . 0 3 6 2 2 3 2 1 . . . . 6 2 0 4 2 H D L C a h o o m i u m n s p a e e s s w a t a i n a c n r d s e d , s g b s l h l a a s a n s d w k e e s a t r s e , linens, etc 2 2 2 2 1 8 2 1 9 7 0 4 + + + + 3 2 6 1 1 7 2 6 0 + + + + 3 2 1 2 4 3 4 + + + -1 2 2 2 5 2 6 6 2 1 1 . . . 7 7 2 2 1 1 1 . . . . 7 6 7 6 Piece goods 282 +60 +8 -30 1.6 2.3 Cotton wash goods 114 -18 -4 -30 1.7 2.0 Small wares 331 + 17 +11 +20 1.2 1.2 Lace, trimmings, embroideries, ribbons 120 +8 +6 +4 1.9 2.0 Notions 219 + 16 + 15 + 17 2.1 2.1 Toilet articles, drug sundries, and prescriptions 312 + 14 +6 + 14 1.2 1.2 Jewelry and silverware 295 +23 + 16 +23 1.1 1.1 Art needlework 233 +3 + 10 + 16 2.0 1.8 Stationery, books, and magazines 235 +21 + 14 +38 0.9 0.8 Miscellaneous 296 +25 + 11 +15 0.7 0.8 Luggage 219 +32 + 12 +22 0.8 0.9 BASEMENT STORE-total 208 +6 +9 +1 1.2 1.2 Women's apparel and accessories 194 +2 +8 +9 1.1 1.1 Men's and boys' clothing and furnishings 160 + 14 + 13 -24 0.8 1.2 Home furnishings 123 + 11 +5 +4 1.7 1.8 S P h ie o c e e s goods 1 5 3 0 2 +8 + + 1 1 2 3 — -1 23 1 1 . . 4 9 2 2 . . 2 1 +14 NOTE.—Group totals include sales in departments not shown separately. Figures for basement store are not strictly comparable with those for main store owing chiefly to inclusion in basement of fewer departments and somewhat different types of merchandise. The ratio of stocks to sales is obtained by dividing stocks at the end of the month by sales during the month and hence indicates the number of months' supply on hand at the end of the month in terms of sales for that month. SALES, ACCOUNTS RECEIVABLE, AND COLLECTIONS Index numbers, without seasonal adjustment, 1941 average = 100 Percentage of total sales •Year and month Sales during month Ac a c t o e u n n d t s o f r e m ce o iv n a th ble Colle m c o ti n o t n h s during Cash In m s e ta n l t - a C c h c a o r u g n e t - Total Cash I m ns e t n a t l- a C c h c a o r u g n e t In m st e a n l t - C a h c a c r o g u e nt In m st e a n l- t a C cc h o ar u g n e t sales sales sales 1944—December 244 324 104 P182 46 128 79 135 64 4 32 1945—January 126 164 57 96 43 97 '80 rl67 63 4 33 February 126 163 57 98 40 84 69 128 63 4 33 March 178 230 73 141 40 96 77 120 63 3 34 April 133 171 52 107 37 88 65 128 62 3 35 May 147 190 55 117 35 88 64 122 63 3 34 June 149 194 52 117 34 88 61 121 63 3 34 July 121 163 48 88 32 76 57 117 66 3 31 August rl36 182 58 99 32 76 57 104 65 4 31 September '154 203 63 118 33 85 59 103 63 4 33 October 190 245 90 147 36 99 71 122 63 4 33 November 212 272 101 165 41 113 77 143 62 4 34 December 270 357 108 204 48 144 79 148 64 4 32 1946—JanuaryP 141 186 60 108 45 108 81 192 63 4 33 ^Preliminary. 'Revised. NOTE.—Data based on reports from a smaller group of stores than is included in the monthly index of sales shown on page 331. MARCH 1946 333 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CONSUMER CREDIT STATISTICS TOTAL CONSUMER CREDIT. BY MAJOR PARTS [Estimated amounts outstanding. In millions of dollars] Instalment credit End o r o f y e m ar onth co c T n r s o e u t d a m i l t er ins T ta o l t m al ent Sale credit Loans1 p S a lo i y n a m g n l e s e 2 n - t a C cc h o a u rg n e ts Service credit credit Total Automobile Other 1929 ,637 3,167 2,515 1,318 197 652 2,125 1,749 596 1930 ,839 2,706 2,032 928 104 674 ,949 1,611 573 1931 ,528 2,214 1,595 637 958 619 ,402 1,381 531 1932 ,082 1,515 999 322 677 516 962 1,114 491 1933 ,905 1,581 1,122 459 663 459 776 1,081 467 1934 ,378 1,849 1,317 576 741 532 875 1,203 451 1935 ,419 2,607 1,805 940 865 802 ,048 1,292 472 1936 ,771 3,501 2,436 1,289 147 1,065 .331 1,419 520 1937 ,467 3,947 2,752 1,384 368 1,195 ,504 1,459 557 1938 ,036 3,584 2,313 970 343 1,271 ,442 1,487 523 1939 ,008 4,463 2,792 1,267 525 1,671 ,468 1,544 533 1940 ,205 5,507 3,450 1,729 721 2,057 ,488 1,650 560 1941 ,956 5,981 3,744 1,942 802 2,237 ,601 1,764 610 1942 ,526 2,996 1,491 482 1,009 1,505 ,369 1,513 648 1943 ,377 2,000 814 175 639 1,186 ,192 1,498 687 1944 ,790 2,083 835 200 635 1,248 ,220 1,758 729 1945 ,666 P2.417 P903 P227 P676 Pl.514 ,497 Pl.981 1945 Jan 5,487 2,013 777 192 585 1,236 1,206 1,534 734 Feb 5,330 1,966 741 186 555 1,225 1,188 1,438 738 Mar 5,581 1,990 731 184 547 1,259 1,181 1,669 741 Apr 5,448 1,988 723 184 539 1,265 1,212 1,506 742 May 5.494 2,004 718 184 534 1,286 1,258 1,488 744 June 5,641 2,031 719 188 531 1,312 L.320 1,544 746 July 5.594 2,038 712 192 520 1,326 1,346 1,459 751 Aug 5.588 2,034 706 196 510 1,328 1,359 1,441 754 Sept 5,638 2,054 717 202 515 1,337 1,358 1,470 756 Oct 5.937 2,133 754 210 544 1,379 1,380 1,666 758 Nov 6,278 2,239 805 219 586 1,434 1,441 1,835 763 Dec P6.666 P2,417 P903 P227 P676 P1,514 Pl.497 Pi,981 P771 1946 Jan P6,448 P2.427 P882 P239 P643 Pl,545 P1,533 PI.709 P779 P Preliminary. 1 Includes repair and modernization loans insured by Federal Housing Administration. 2 Noninstalment consumer loans (single-payment loans of commercial banks and pawnbrokers). CONSUMER INSTALMENT SALE CREDIT, EXCLUDING CONSUMER INSTALMENT LOANS AUTOMOBILE CREDIT [Estimated amounts outstanding. In millions of dollars] [Estimated amounts outstanding. In millions of dollars] m E o y n n e d t a h r o f or ex m T a c u o o lu b t t d o a il - i l e n , g D s o m m e t a r o p n a e d r a i d n e e l r t r - s t- F s t t u u o r r r n e e i s - H a s a h t p o o n o p u r c l l s d e e i e s - - Je st w o e re lr s y s r o t e A t o t h r a l e l e i r l s m E o y n n e d t a h o r o f r Total b m C a e o n r m k ci s - a 1 l p S c l a m o o n a m a i n e l - l s b p I a c n a t n o r n d i k m i u a e i l s n - s - g 2 u C n r i e o d n i s t l l M e a n n i d s e c e o e r u s l s - m I i r l n z o o e a a s d a p n t u n e i a d r o r s i e r n n 1 d houses 1929 652 43 263 219 32 95 1930 674 45 287 218 31 93 1929 1,197 160 583 265 56 133 1931 619 39 289 184 29 78 1930 1,104 155 539 222 47 141 1932 516 31 257 143 27 58 1931 958 138 454 185 45 136 1933.... 459 29 232 121 27 50 1932 677 103 313 121 30 110 1934 532 44 246 125 32 60 *25 1933 663 119 299 119 29 97 1935 802 88 267 156 44 79 168 1934 741 146 314 131 35 115 1936 1,065 161 301 191 66 102 244 1935 865 186 336 171 40 132 1937 1,195 258 350 221 93 125 148 1936 1,147 256 406 255 56 174 1938 1,271 312 346 230 112 117 154 1937 1,368 314 469 307 68 210 1939.... 1,671 523 435 257 147 96 213 1938 1,343 302 485 266 70 220 1940 2,057 692 505 288 189 99 284 1939 1,525 377 536 273 93 246 1941 2,237 784 535 298 217 102 301 1940 1,721 439 599 302 110 271 1942 1,505 426 424 202 147 91 215 1941 1,802 466 619 313 120 284 1943 1,186 312 372 165 123 86 128 1942 1,009 252 391 130 77 159 1944 L,248 358 388 175 119 88 120 1943 639 172 271 29 66 101 1945 p1,514 P471 P445 P200 P124 P93 P181 1944 635 183 269 13 70 100 1945 P676 P198 P283 P14 P74 P107 Jan 1945 L.236 359 378 172 116 87 124 1945 Feb L.225 357 372 168 114 86 128 585 171 249 12 61 92 Mar L.259 374 381 171 116 87 130 Feb 555 162 240 12 54 87 Apr L.265 377 381 172 116 87 132 Mar 547 162 238 11 50 86 May. . . . L.286 388 384 177 116 87 134 Apr 539 158 237 11 48 85 June.... 1,312 400 389 181 118 88 136 May 534 154 238 10 48 84 July 1,326 406 391 182 119 88 140 June 531 150 237 11 49 84 Aug 1,328 406 389 182 118 88 145 July 520 145 235 11 47 82 Sept 1,337 413 387 182 116 87 152 Aug 510 142 232 11 45 80 Oct 1,379 428 395 186 117 88 165 Sept 515 144 235 11 44 81 Nov 1,434 448 409 193 120 90 174 Oct 544 156 247 11 44 86 Dec P1,514 P471 P44S P200 P124 P93 P181 Nov 586 173 262 12 47 92 Dec P676 P198 P283 P14 P107 1946 Jan Pl,545 P492 P446 P203 P123 P93 P188 1946 Jan P643 P190 P272 P14 P66 P101 P Preliminary. 1 These figures include only personal instalment cash loans and retail P Preliminary. automobile direct loans, shown on the following page, and a small amount of other retail direct loans (25 million dollars at the end of January 1946), not shown separately. 2 This series is in process of revision. 3 Includes only loans insured by Federal Housing Administration. 334 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CONSUMER CREDIT STATISTICS—Continued CONSUMER INSTALMENT CREDITS OF COMMERCIAL CONSUMER INSTALMENT LOANS MADE BY PRINCIPAL BANKS. BY TYPE OF CREDIT LENDING INSTITUTIONS [Estimates. In millions of dollars] [Estimates of volume made in period. In millions of dollars! Month or year Total Aut r o e m ta o il bile r O p e t t u h a r e i - l r , R m a e n o p d d a - ir i s P n o s e n t r a a - l l - Month or year Co b m a m nk e s r * cial S co m m a p ll a l n o i a e n s c I o n b m d an u p k s a t i n r n i i g a e l s2 u C n r i e o d n i s t chased erniza- ment Pur- Direct and tion cash chased loans direct loans1 loans 1929 463 413 42 1930 503 380 41 1931 498 340 38 Outstanding at end of 1932 376 250 34 period: 1933 304 202 33 1939 1,093 218 164 155 209 347 1934 384 234 42 1940 1,450 311 253 217 247 422 1935 423 288 67 1941 1,694 411 310 288 234 451 1936 563 354 105 1942 845 136 123 143 154 289 1937 619 409 148 1943 514 55 81 68 89 221 1938 604 417 179 1944 559 57 99 75 83 245 1939 763 489 257 1945P 731 65 146 97 121 302 1940 927 536 320 1941 983 558 372 1945—January. . . 562 56 100 80 82 244 1942 792 798 408 247 February.. 556 55 101 76 83 241 1943 636 809 364 228 March. . . . 573 56 107 76 84 250 1944 744 876 403 234 April 579 55 109 77 86 252 1945? 938 978 465 233 May 592 55 112 78 89 258 June 609 56 116 79 93 265 1944 July 619 56 118 79 96 270 June 69 75 38 22 August 622 57 119 79 100 267 July 63 73 33 19 September. 633 58 122 79 103 271 August . .. 64 70 35 20 October. . . 659 60 128 83 109 279 September 60 67 33 19 November. 694 62 135 90 116 291 October 61 68 34 18 December ? 731 65 146 97 121 302 November 61 77 34 18 December 72 . 106 37 23 1946—January?.. 770 70 154 125 313 1945 Volume extended dur- January 66 58 33 16 ing month: February 62 56 30 16 1945—January... 96 20 17 7 43 March 82 94 42 23 February.. 86 19 12 7 39 April 69 70 34 18 March. . . . 114 24 15 9 54 May 75 78 39 20 April 101 21 16 10 45 June 81 82 40 21 May 110 22 18 10 50 July 75 76 37 19 June 116 24 15 12 53 August '73 71 36 18 July 107 22 13 11 50 September 72 74 36 16 August.. . . 108 23 15 12 47 October 88 89 44 20 September. 106 23 13 12 46 November 94 97 45 22 October. . . 131 28 19 15 56 December? 101 133 49 24 November. 140 29 21 16 60 December** 147 32 24 13 64 1946 January? 102 76 45 20 1946—January?.. 155 33 27 14 62 P Preliminary. T Revised. P Preliminary. 1 These figures for loans made include only personal instalment cash 1 Includes not only loans insured by Federal Housing Administration loans and retail automobile direct loans, which are shown elsewhere on but also noninsured loans. this page, and a small amount of other retail direct loans (7 million dollars in January 1946) not shown separately. 2 This series is in process of revision. FURNITURE STORE STATISTICS RATIO OF COLLECTIONS TO ACCOUNTS RECEIVABLE i Pe fr r o c m en ta p g re e c e c d h i a n n g ge f P ro e m rc e c n o ta rr g e e s p c o h n a d n i g n e g Instalment accounts a C c h co ar u g n e ts month month of preceding year 1 Ja 94 n 6 . ? D 19 e 4 c. 5 N 19 o 4 v 5 . 1 Ja 94 n 6 . ? D 19 e 4 c. 5 N 19 o 4 v 5 .* Month D s m e to p e r a n e r t s t- F s t t u u o r r r n e e i s - h p H s o l t l o i o d a u r n s e a c e s p e - - Je st w o e re lr s y D s m e to p e r a n e r t s t- Net sales: 1944 Total -^28 + 15 +4 +38 + 16 + 19 December 37 23 39 62 Cash sales -29 +28 + 10 +62 +30 +37 Credit sales: 1945 Instalment -31 +7 +3 +41 +12 + 13 January '32 21 35 29 61 Charge account -23 + 15 0 +21 + 15 +28 F M e a b r r c u h ary 3 3 0 6 2 2 4 1 3 3 2 6 3 2 2 8 6 6 1 6 Accounts receivable, at April 30 22 36 30 61 end of month: May 32 23 40 33 64 Total -7 +9 +6 +4 +4 +3 June 32 23 43 33 64 Instalment -5 + 10 +5 +9 +6 +2 J A u u ly gust 3 3 3 1 2 2 3 4 4 4 8 2 3 3 1 1 6 6 2 3 Collections during September 35 23 49 30 63 month: October 40 27 52 31 66 Total + 10 -2 +3 + 17 + 12 + 11 November 40 27 51 '35 67 Instalment +5 -1 +4 +25 + 11 + 14 December 36 24 48 46 61 Inventories, end of 1946 month, at retail value. +4 -10 -2 + 11 +6 +6 January? 31 24 54 32 *» Preliminary ? Preliminary. r Revised. 1 Ratio of collections during month to accounts receivable at beginning of month. MARCH 1946 335 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

WHOLESALE PRICES, BY GROUPS OF COMMODITIES [Index numbers of the Bureau of Labor Statistics. 1926 = 100] Other commodities All Year, month, or week m c t o i o e m d s i - - F p u r a c o r t d m s - Foods Total H p l i r e d o a e d t s h u e c a r n ts d p T ro e d x u ti c le ts m F li u a g e t h e l t r i a i n a n g l d s i 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 l h s l e l i m a e n d i- d in f H u g r o n g u i o s s o h e d - - s l M an is e c o e u l s products 1929 104.9 99.9 91.6 109.1 90.4 83.0 100.5 95.4 94.0 94.3 82.6 1930 88.3 90.5 85.2 100.0 80.3 78.5 92.1 89.9 88.7 92.7 77.7 1931 64.8 74.6 75.0 86.1 66.3 67.5 84.5 79.2 79.3 84.9 69.8 1932 48.2 61.0 70.2 72.9 54.9 70.3 80.2 71.4 73.9 75.1 64 1933 51.4 60.5 71.2 80.9 64.8 66.3 79.8 77.0 72.1 75.8 62 1934 65.3 70.5 78.4 86.6 72.9 73.3 86.9 86.2 75.3 81.5 69 1935 78.8 83.7 77.9 89.6 70.9 73.5 86.4 85.3 79.0 80.6 68 1936 80.9 82.1 79.6 95.4 71.5 76.2 87.0 86.7 78.7 81.7 70.5 1937 86.4 85.5 85.3 104.6 76.3 77.6 95.7 95.2 82.6 89.7 77.8 1938 68.5 73.6 81.7 92.8 66.7 76.5 95.7 90.3 77.0 86.8 73.3 1939 65.3 70.4 81.3 95.6 69.7 73.1 94.4 90.5 76.0 86.3 74.8 1940 67 71 83.0 100.8 73.8 71.7 95.8 94.8 77.0 88.5 77.3 1941 82.4 82.7 89.0 108.3 84.8 76.2 99.4 103.2 84.4 94.3 82.0 1942 105.9 99.6 95.5 117.7 96.9 78.5 103.8 110.2 95.5 102.4 89.7 1943 122.6 106.6 96.9 117.5 97.4 80.8 103.8 111.4 94.9 102.7 92.2 1944 123.3 104.9 98.5 116.7 98.4 83.0 103.8 115.5 95.2 104.3 93.6 1945 128.2 106.2 99.7 118.1 100.1 84.0 104.7 117.8 95.2 104.5 94.7 1945—January.. 126.2 104.7 99.1 117.5 99.6 83.3 104.0 116.8 94.9 104.5 94.2 February. 127.0 104.7 99.2 117.6 99.7 83.3 104.2 117.0 94.9 104.5 94.6 March.... 127.2 104.6 99.2 117.8 99.7 83.4 104. 117.1 94.9 104.5 94.6 April 129.0 105.8 99.3 117.9 99.6 83.5 104. 117.1 94.9 104.5 94.8 May 129.9 107.0 99.4 117.9 99.6 83.7 104.3 117.3 94.9 104.5 94.8 June 130.4 107.5 99.6 118.0 99.6 83.9 104. 117.4 95.0 104.5 94.8 July 129.0 106.9 99.7 118.0 99.6 84.3 104. 117.5 95.3 104.5 94.8 August. . . 126.9 106.4 99.9 118.0 99.6 84.8 104.7 117.8 95.3 104.5 94.8 September 124.3 104.9 99.8 118.7 100.1 84.1 104.9 118.0 95.3 104.6 94.8 October... 1-27.3 105.7 100.1 118.6 101.0 84.2 105.0 118.3 95.5 104.7 94.8 November 131.1 107.9 100.2 118.8 101.1 84.6 105.2 118.7 95.7 104.7 94.8 December. 131.5 108.6 100.5 118.9 101.4 84.8 105.6 119.5 96.1 104.7 94.8 1946—January.. 129.9 107.3 100.8 119.4 101.6 84.9 105.7 120.0 96.0 106.2 95.3 Week ending: 1945—Oct. 13. . 105.3 126.3 105.2 100.0 118.4 99.9 84.5 104.8 118.0 95.3 106.3 94.6 Oct. 20. . 105.5 126.9 105.8 100.1 119.1 99.9 84.5 105. 118.1 95.5 106.3 94.6 Oct. 27. . 105.7 127.7 106.0 100.1 119.1 99.9 84.7 105.2 118.1 95. 106. 94.6 Nov. 3. . 105.9 129.1 106.6 100.1 119.1 100.0 84.5 105.2 118.2 95. 106. 94.6 Nov. 10. . 106.1 129.5 107.0 100.2 119.1 100.5 84.5 105.3 118.6 95. 106. 94.6 Nov. 17. . 106.3 130.3 107.2 100.3 119.1 100.5 84.6 105.3 118.6 95.6 106. 94.6 Nov. 24. . 106.7 132.1 108.7 100.3 119.1 100.5 84.6 105.3 118.7 95.6 106. 94.6 Dec. 1. . 106.8 132.0 108.5 100.4 119.4 100.6 85.1 105.3 118.7 96.1 106. 94.6 Dec. 8. . 106.5 130.3 108.1 100.5 119.4 100.6 85.2 105.3 118.7 96.1 106. 94.6 Dec. 15.. 106.7 131.3 108.3 100.5 119.4 100.6 85.2 105.3 118.8 96.1 106. 95.0 Dec. 22. . 106.8 131.5 108.6 100.5 119.4 100.6 85.2 105.3 118.8 96.1 106. 95.0 Dec. 29. . 107.0 132.7 109.5 100.6 119.4 100.6 85.3 105.3 118.9 96.1 106. 95.0 1946—Jan. 5 . . 106.8 131.3 108.0 100.6 119.4 100.6 85.2 105.3 119.1 96.1 106.4 95.0 Jan. 12.. 106.7 130.0 107.6 100.7 119.4 101.0 85.5 105.4 119.2 96.1 106.4 95.0 Jan. 19.. 106.7 129.3 107.3 100.8 119.4 101.1 85.5 105.4 119.8 96.1 106.6 95.0 Jan. 26. . 106.8 129.9 106.8 100.9 119.4 101.1 85.4 105.8 119.9 96.0 106.6 95.0 Feb. 2. . 106.8 129.7 106.7 100.9 119.8 101.1 85.4 105.8 119.9 96.0 106.8 95.0 Feb. 9.. 107.1 130.4 107.1 101.1 120.0 101.1 85.8 105.8 119.9 96.0 106.8 95.3 Feb. 16.. 107.2 131.0 108.0 101.1 120.1 101.1 85.7 105.8 120.0 95.9 106.8 95.4 Feb. 23.. 107.4 131.1 108.3 101.1 120.1 101.1 85.6 105.8 120.2 96.0 108.0 95.4 Annual Annual 1945 1946 Subgroups Subgroups 1944 1945 Jan. Dec. Jan. 1944 1945 Jan. Dec Jan. Farm Products: Metals and Metal Products: Grains 126.9 129.7 129.3 133.2 133.8 Agricultural implements.. 97.3 97.8 97.5 98.1 98.1 Livestock and poultry 124.6 132.5 131.1 129.6 131.5 Farm machinery 98.4 98.8 98.7 99.1 99.1 Other farm products 120.7 124.3 121.5 131.3 126.9 Iron and steel 97.2 99.2 97.7 101.0 101.2 Foods: Motor vehicles 112.8 112.8 112.8 112.8 112.8 Dairy products 110.5 111.1 110.8 113.8 115.0 Nonferrous metals 85.8 85.8 85.9 85.8 85.7 Cereal products 94.8 95.2 94.7 95.7 95.8 Plumbing and heating 92.2 93.4 92.4 95.0 95.0 Fruits and vegetables 121.3 122.8 114.4 128.7 125.7 Building Materials: Meats 106.1 107.8 106.4 107.9 108.1 Brick and tile 101.7 112.4 110.4 116.7 116.9 Other foods 95.0 96.6 97.3 100.6 96.2 Cement 95.8 99.4 97.4 100.5 101.0 Hides and Leather Products: Lumber 153.3 155.1 153.8 157.8 158.5 Shoes 126.3 126.4 126.3 126.8 127.9 Paint and paint materials. 105.2 106.9 106.3 107.8 107.8 Hides and skins 109.9 117.0 114.8 117.6 117.6 Plumbing and heating 92.2 93.4 92.4 95.0 95.0 Leather 101.3 102.2 101.3 104.1 103.8 Structural steel 107.3 107.3 107.3 107.3 107.3 Other leather products 115.2 115.2 115.2 115.2 115.2 Other building materials.. 103.1 104.4 103.5 105.9 106.6 Textile Products: Chemicals and Allied Products: Clothing 107.1 107.4 107.4 107.4 107.4 Chemicals 96.1 96.1 95.8 97.1 97.1 Cotton goods 115.7 121 A 119.7 125.5 125.6 Drugs and Pharmaceutical 108.8 109.0 106.9 112.3 112.1 Hosiery and underwear 70.9 71.7 71.5 73.5 75.2 Fertilizer materials 81.3 81.6 81.9 81.9 81.9 Silk Mixed fertilizers 86.4 86.6 86.6 86.6 86.6 Rayon 30.2 30.2 30.2 30.2 30.2 Oils and fats 102.0 102.0 102.0 102.0 101.7 Woolen and worsted goods.. . 112.7 112.7 112.7 112.7 112.7 Housefurnishing Goods: Other textile products 100.6 101.1 100.9 101.9 101.9 Furnishings 107.3 107.6 107.5 107.9 109.7 Fuel and Lighting Materials: Furniture 101.4 101.5 101.5 101.6 102.8 Anthracite 95.6 99.0 95.3 103.4 103.9 Miscellaneous: Bituminous coal 120.3 123.1 120.5 125.0 125.1 Auto tires and tubes 73.0 73.0 73.0 73.0 73.0 Coke.. 130.3 132.5 130.7 134.9 134.9 Cattle feed 159.6 159.6 159.6 159.6 159.6 Electricity 59.6 60.0 Paper and pulp 107.1 108.8 107.6 109.3 112.0 Gas 77.2 75.7 77.*7 Rubber, crude 46.2 46.2 46.2 46.2 46.2 Petroleum products 63.9 63.5 64.3 61.6 61.5 Other miscellaneous 97.0 98.9 98.2 98.9 98.9 * Back figures.—Bureauo f Labor Statistics, Department of Labor. 336 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

GROSS NATIONAL PRODUCT, NATIONAL INCOME, AND INCOME PAYMENTS [Estimates of the Department of Commerce. In billions of dollars] Annual totals 1945 by quarters Seasonally adjusted Unadjusted annual rates 1937 1938 1939 1940 1941 1942 1943 1944 1945 1 2 3 4 1 2 3 4 Gross national product 87.7 80.6 88.6 97.1 '120.2 '152.3 '187.4 '197.6 197.3 49.8 51.8 48.7 47.0 204.5206.3195.7 182.8 Government expenditures for goods and services 13.6 14.4 16.0 16.7 26.5 '62.7 '93.5 '97.1 83.0 24.0 25.1 19.5 14.5 95.6 99.2 79.5 57.7 Federal Government 6.1 6.8 7.9 8.8 18.6 '55.3 '86.2 '89.5 75.1 21.9 23.1 17.7 12.4 87.8 91.3 71.6 49.8 War 1.4 2.8 13.3 '50.3 '81.3 '83.7 69.0 20.5 21.3 16.3 10.8 82.2 85.3 65.2 43.3 Nonwar 6.5 6.1 5 3 5 0 4.9 '5.7 6.1 1.4 1 7 1 4 1.6 5.6 6.0 6.4 6.5 State and local governments. 7.5 7 6 8 1 7 9 7 9 7.4 7.4 '7.7 7.9 2.0 2.0 1.7 2.1 7.8 7.8 7.9 8.0 Private gross capital formation. 11.6 7.7 10.9 14.8 '19.1 '7.6 '2.5 '2.0 9.4 1.2 1.6 3.5 3.1 3.9 7.1 12.5 14.2 Construction 3 7 3 3 3 6 4 3 '5 3 '2.9 '1.6 1.6 2.7 0.4 0.6 0.8 1.0 1.8 2.4 2.9 3.7 Residential 2.0 2.4 2.8 1.3 0.6 0.5 0.8 0.1 0.1 0.2 0.3 Other 1.6 2 0 2 5 '1 6 '1.0 1.1 1.9 0.3 0 4 0 5 0.6 Producers durable equip- 6 3 4 5 5 5 6 9 8 9 5.1 3.1 4.0 6.4 1.3 1.5 1.8 1.8 5.2 6.1 7.0 7.2 Net change in business inventories 1.1 i ? 0.9 1.8 3.5 -0.5 -0.6 -1.7 C1) 0) -0.2 0.4 -0.2 -1.3 -0.2 0.2 1.6 Net exports of goods and services 0.1 1.1 0.8 1.5 C1) '-1.5 '-1.8 0.4 -0.4 -0.2 0.6 0.5 -1.7 -1.0 2.5 1.9 Net exports and monetary use of gold and silver.... 0.4 0.1 0.2 0.3 0.2 0.1 0) '-0.1 -0.1 0) C1) C1) -0.1 -0.1 -0.1 -0.1 Consumer goods and services.. . 62.5 58.5 61.7 65.7 74.6 '82.0 '91.3 '98.5 104.9 24.7 25.0 25.7 29.5 105.0 100.0 103.7 110.9 Durable goods 7.6 6.0 6.4 7.4 9.1 6.3 6.6 6.7 7.4 1.5 1.7 1.7 2.5 7.2 6.7 7.1 8.4 Nondurable goods J54.9J52.5 32.6 34.4 40.1 47.9 55.1 60.0 64.4 15.0 14.9 15.7 18.8 65.2 59.5 63.3 69.5 Services. 22.7 23.9 25.4 '27.8 '29.7 '31.8 33.1 8.2 8.4 8.3 8.2 32.6 33.7 33.3 33.0 Gross national product 87.7 80.6 88.6 97.1 '120.2 '152.3 '187.4 '197.6 197.3 49.8 51.8 48.7 47.0 204.5206.3195.7 182.8 Deductions: Business tax and nontax liabilities 9.0 8.3 10.4 12.4 18.5 23.1 27.4 '29.7 28.6 7 3 7 5 7 3 6 5 Depreciation and depletion 6 1 6.2 6 2 6 4 7 0 7 6 '8.0 '8.2 8 2 2 0 2 0 2.0 2.0 Other business reserves. . . 1.0 0.5 0.8 0.7 0.8 '0.6 '0.5 '0.5 0.5 0.1 0.1 0.1 0.1 Capital outlay charged to current expense 0 8 0 5 0 7 0 9 1 3 1 1 0 8 0 9 1 1 0 2 0 2 0 3 0 3 Adjustments: For inventory revaluation. -0.7 +0.9 -0.4 -0.4 -2.1 -0.2 -0.1 C1) 0) C1) 0) For discrepancies 0 0 0 -0.4 '-0.2 '1.5 '-2.2 -2.0 -0.8 0.6 -0.8 -1.0 National income 71.5 64.2 70.8 77.6 96;< 122.2 149.4 160.7 161.0 40.9 41.3 39.8 39.0 167.6 166! 2158^4 Additions: Transfer payments 1.7 2.4 2.4 2.6 2.5 2.7 3.2 5.3 8 1 1 5 1 7 1 9 3 0 Deductions: Corporate savings -0.8 -1.5 0.4 1.8 4.0 4.4 5.5 5.4 4.5 1.6 1.5 1.1 0.2 Contributions to social insurance funds 1 7 1 9 2 0 2 1 2 6 3 2 3 8 3 9 3 8 1 0 1 0 0 9 0 9 Income payments to individuals . . 72.3 66.2 70.8 76.2 92.7 117.3 143.1 156.8 160.7 39.8 40.4 39.7 40.9 163.7163.2158.6 156.9 Income payments to individuals 72.3 66.2 70.8 76.2 92.7 117.3 143.1 156.8 160.7 39.8 40.4 39.7 40.9 163.7163.2158.6 156.9 Personal taxes and nontax payments 3.1 3.J 3.1 3.3 4.0 6.7 '18.6 '19.4 21.0 8.7 4.9 3.8 3.7 22.1 21.7 20.6 19.7 Federal 1 4 1 6 1 3 1.4 2.0 4.7 16.6 '17.4 18.9 8.1 4.3 3.5 3.0 20.0 19.5 18.5 17.6 State and local 1.7 1.7 1.9 1.9 2.0 2.0 2.0 '2. 2.1 0.6 0.6 0.3 0.6 2.1 2.1 2.1 2.1 Disposable income of individuals 69.2 62.9 67.7 72.9 88.7 110.6 124.6 '137.4 139.7 31.1 35.5 35.9 37.2 141.7 141.6 138.0 137.3 Consumer expenditures. . . 62.5 58.5 61.7 65.7 74.6 '82.0 '91.3 '98.5 104.9 24.7 25.0 25.7 29.5 105.0100.0103.7 110.9 Net savings of individuals. 6.7 4.4 6.0 7.3 14.2 '28.6 '33.3 '38.9 34.9 6.4 10.5 10.2 7.7 36.7 41.6 34.3 26.4 National income 71.5 64.2 70.8 77.6 96.9 122.2 149.4 160.7 161.0 40.9 41.3 39.8 39.0 167.6 166.2158.4150.7 Total compensation of employee 48.3 45.1 48.1 52.3 64.5 84.1 106.3 116.0 114.5 29.8 29.8 28.2 26.7 119.6 118.3 113.0 105.7 Salaries and wages 45.0 41.2 44.2 48.6 60.8 80.8 103.1 112.8 111.4 29.0 29.0 27.5 26.0 116.4115.1110.0 102.7 Supplements 3 3 3.9 3.8 3.7 3.7 3.3 3.2 3.2 3.1 0.8 0.8 0.8 0.7 3.2 3.2 3.0 2.9 Net income of proprietors.... 11.9 10.1 11.2 12.0 15.8 20.6 23.5 24.1 25.6 5.7 5.8 6.6 7.5 26.3 25.8 25.1 26.0 Agricultural. . . 5. 4.C 4.3 4.4 6.3 9.7 11.9 11.8 12.5 2.5 2.6 3.4 4.1 13.3 13.2 12.2 12.1 Nonagricultural 6.8 6. 6.9 7.6 9.6 10.9 11.6 12.3 13. 3.2 3.2 3.2 3.5 13.0 12.6 12.9 13.9 Interest and net rents 7.4 7.4 7.5 8.0 8.8 9.7 10.6 11.8 2.9 3.1 2.8 3.0 11.4 11.7 11.9 12.2 Net corporate profit 3.9 1. 4.2 5.8 8.5 8.7 9.8 9.9 9.0 2.6 2.6 2.1 1.7 10.4 10.4 8.4 6.8 Dividends 4.7 3.2 3 8 4 0 4 5 4 3 4 3 4 5 4 5 1 0 1 1 0 Savings 0 8 1 5 0 4 1 8 4 0 4 4 5 5 5 4 4 5 1 6 1 5 I i 0 2 1 Less than 50 million dollars. ' Revised. NOTE.—Detail does not always add to totals because of rounding. For a general description of above series see the Survey of Current Businessf May and August, 1942, and March, 1943. Back figures: For annual totals 1929 through 1936, see the Survey of Current Business, May, 1942 and April, 1944. For quarterly estimates, 1929 through 1944, see the Survey of Current Business April 1944, and February, 1946. MARCH 1946 337 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 1946 1946 Chan Chart book book page Jan. Jan. Feb. Feb. Feb. page Nov. Dec, Jan.' 23 30 6 13 20 WEEKLY FIGURESi In billions of dollars MONTHLY FIGURES In billions of dollars RESERVES AND CURRENCY RESERVES AND CURRENCY Reserve Bank credit, total 23.92 23.90 23.84 23.93 23.7' Reserve Bank credit 24.39 24.74 24.30 U. S. Govt. securities, total 23.34 23.30 23.23 23.25 23.02 old stock 20.03 20.05 20.11 Bills 12.78 12.89 12.94 13.06 13.10 Money in circulation 28.15 28.45 28.16 Certificates 8.19 8.06 7.94 7.84 7.59 Treasury cash 2.27 2.27 2.26 Notes 1.43 1.40 1.40 1.40 1.38 Treasury deposits .42 .62 .65 Bonds .95 .95 .95 .95 .95 Member bank reserves, total. . 16.04 16.03 15.92 Discounts and advances .21 .31 .29 .41 .35 Central reserve city banks. . 5.21 5.06 4.97 Gold stock 20.14 20.16 20.16 20.16 20.23 Reserve city banks 6.38 6.39 6.36 Money in circulation 27.98 27.91 27.93 27.97 27.96 Country banks 4.45 4.58 4.59 Treasury cash 2.28 2.30 2.31 2.30 2.3: Required reserves, total 14.88 14.53 14.61 Treasury deposits .58 .76 .72 .86 .94 Central reserve city banks. . 5.18 4.99 4.96 Member bank reserves 2, 15.86 15.68 15.72 15.69 15.49 Reserve city banks. 6.08 5.98 6.02 Required reserves 14.69 14.62 14.49P14.46P14.43 Country banks 3.61 3.56 3.63 Excess reserves6 1.17 1.06 Pi.22 Pl.24 Pl.06 )xcess reserves, total , 1.17 1.50 1.31 Excess reserves (weekly average), total* 1.22 Pl.19 Pi. 20 Pl.18 Balances due from banks: New York City .01 .02 .02 .01 ".03 Reserve city banks , 1.88 2.07 2.07 Chicago .01 .01 .01 .01 Country banks 4.26 4.53 4.54 Reserve city banks .29 .27 .28 .28 Money in circulation, total. 28.21 28.51 27.92 Country banks e .92 P.90 P.90 P. 89 $ B 1 i 0 ll s a n o d f $ $ 5 2 0 0 a b n i d ll s over 1 7 5 . . 7 8 1 8 15 7 . .8 9 4 8 1 7 5 . . 7 5 9 9 Coins, $1, $2 and $5 bills. . . 4.62 4.70 4.53 MEMBER BANKS IN LEADING CITIES ALL BANKS IN U. S. Total—101 cities: Loans and investments 14 68.11 68.21 68.22 67.94 68.18 Total deposits and currency.. . , 168.10P175.OOP176.4O U. S. Govt. obligations 14 49.53 49.66 49.72 49.49 49.59 Demand deposits P80.50 P75.1O P76.50 Demand deposits adjusted 14 38.04 38.03 37.82 37.54 37.69 Time deposits P48.00 P48.50 P49.10 U. S. Govt. deposits 14 16.08 16.27 16.34 16.39 16.43 "urrency outside banks P26.50 P26.80 P26.20 Loans 14 15.22 15.19 15.14 15.07 15.18 LJ. S. Govt. deposits P13.10 P24.60 P24.60 New York City: Loans and investments 15 23.70 23.76 23.82 23.61 23.66 CONSUMER CREDIT U. S. Govt. obligations, total 15 16.28 16.36 16.45 16.30 16.23 Bonds 16 9.56 9.56 9.57 9.56 9.50 Consumer credit, total 18 6.28 P6.67 P6.45 Certificates 16 3.53 3.53 3.61 3.53 3.59 Single payment loans 18 1.44 Pl.50 Pl.53 Notes and guar. securities 16 2.72 2.72 2.73 2.74 2.76 Charge accounts 18 1.84 Pl.98 Pl.71 Bills 16 .47 .56 .54 .47 .38 Service credit 18 .76 P.77 p.78 Demand deposits adjusted 15 13.73 13.73 13.73 13.46 13.57 Instalment credit, total 18, 19 2.24 P2.42 P2.43 U. S. Govt. deposits 15 6.16 6.23 6.24 6.26 6.27 Instalment loans 19 1.43 Pi.51 Pl.55 Interbank deposits 15 4.31 4.23 4.25 4.28 4.23 Instalment sale credit, total. 19 .81 P.90 P.88 Time deposits 15 1.14 1.14 1.15 1.15 1.16 Automobile 19 .22 P.23 P.24 Loans, total 15 6.34 6.32 6.28 6.23 6.34 Other 19 .59 P.68 P.64 Commercial 17 2.84 2.85 2.89 2.90 2.92 For purchasing securities: TREASURY FINANCE Brokers'—on U. S. Govts 16 1.30 1.28 1.21 1.22 1.25 Brokers'—on other securities... 16 .55 .54 .53 .52 .52 U. S. Govt. obligations outstand- To others 17 1.04 1.06 1.02 1.01 1.04 ing, total interest-bearing. . 2C 263.39 276.25 278.00 Allother 17 .60 .58 .63 .59 .62 By classes of securities: 100 cities outside New York: Bonds (marketable issues).. 20 109.37 120.42 121.36 Loans and investments 15 44.41 44.45 44.41 44.33 44.52 Notes, cert., and bills 20 75.55 78.16 78.10 U. S. Govt. obligations, total 15 33.26 33.30 33.27 33.19 33.36 Savings bonds and tax notes 20 57.03 56.91 57.17 Bonds 16 17.53 17.63 17.63 17.68 17.72 Special issues 20 20.71 20.00 20.65 Certificates 16 9.19 9.25 9.26 9.26 9.30 By maturities: Notes and guar. securities 16 5.25 5.24 5.21 5.20 5.20 5 years and over 20 101.32 109.70 110.63 Bills 16 1.29 1.18 1.16 1.05 1.14 5-20 years 20 66.22 67.17 67.28 Demand deposits adjusted 15 24.30 24.30 24.09 24.08 24.12 5-10 years 20 49.29 46.59 46.59 U. S. Govt. deposits 15 9.91 10.04 10.09 10.13 10.17 Within 5 years 20 83.80 89.08 89.00 Interbank deposits 15 7.46 7.14 7.18 7.19 7.09 Within 1 year 20 63.24 68.57 68.51 Time deposits 15 8.37 8.38 8.41 8.43 8.45 Certificates 20 35.02 38.16 41.50 Loans, total 15 8.89 8.88 8.85 8.85 8.84 Bills 20 17.03 17.04 17.04 Commercial 17 4.43 4.45 4.46 4.46 4.47 Holdings of U. S. Govt. obliga- For purchasing securities 17 2.16 2.15 2.10 2.07 2.05 tions: All other 17 2.30 2.28 2.30 2.31 2.33 Commercial banks 21 85.60 90.00 Fed. agencies and trust funds. 21 26.84 27.04 27.70 MONEY RATES, ETC. Per cent per annum F M e u d t e u r a a l l s R a e v s i e n r g v s e b B a a n n k k s s 2 2 1 1 2 9 3 . . 8 4 0 7 2 1 4 0 . . 2 7 6 0 23.26 Insurance companies 21 '22.30 24.10 Treasury bills (new issues) 24 .375 .375 .375 .375 .375 Other investors, total 21 '95.40 100.10 Treasury notes (taxable) 24 1.06 1.07 1.06 1.04 1.00 Marketable issues -21 r40.40 45.30 Treasury bonds (taxable) 24, 26 2.18 2.17 2.14 2.10 2.10 High-grade corporate bonds (5 issues). 26 2.39 2.37 2.37 2.36 2.36 Corporate Aaa bonds 26 2.52 2.50 2.49 2.48 2.48 Per cent per annum Corporate Baa bonds 26 3.00 2.98 2.96 2.94 2.94 MONEY RATES, ETC. In unit indicated Corporate Aaa bonds 23 2.62 2.61 2.54 "". R. Bank discount rate (N. Y.) 23 .50 .50 .50 Stock prices (1935-39=100), total.... 27 145 149 149 145 141 Treasury bills (new issues) 23 .375 .375 .375 Industrial 27 148 151 152 147 143 Railroad 27 166 168 169 162 154 Public utility 27 125 127 127 124 122 In unit indicated Volume of trading (mill, shares) 27 1.88 2.39 1.62 1.72 1.90 itock prices (1935-39 =100): BUSINESS CONDITIONS T In o d t u al s trial 2 2 7 7 1 1 3 3 7 9 1 1 4 4 0 2 1 1 4 4 5 8 Steel production (% of capacity) 2 37 5.1 5.9 6.0 5.5 15.2 Railroad 27 154 157 164 Electric power prod. (mill. kw. hrs.). . 37 4,034 3,983 3,983 3,949 Public utility 27 121 120 124 Freight carloadings (thous. cars) 45 709 723 713 707 723 Volume of trading (mill, shares). 27 1.96 1.63 2.18 Department store sales (1935-39=100) 45 189 197 215 209 212 Brokers' balances (mill, dollars): Wholesale prices (1926=100), total. .. 49 106.8 106.8 107.1 107.2 107.4 Credit extended customers. .. 29 1,095 1,138 1,168 F O a th rm er p th ro a d n u f c a t r s m and food 4 4 9 9 1 1 2 0 9 0 . . 9 9 1 1 2 0 9 0 . . 7 9 1 10 3 1 0 . . 1 4 1 10 3 1 1 . . 1 0 1 1 3 0 1 1 . . 1 1 M Cu o s n t e o y m e b r o s r ' r f o r w ee e d c redit balances 2 2 9 9 6 7 3 1 9 1 6 79 5 5 4 7 7 3 2 4 7 For footnotes see page 339. 338 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 1945 Chart 1945 1946 book book page Nov. Dec Jan. page Nov. Dec Jan. MONTHLY FIGURES—Cont In unit indicated MONTHLY FIGURES—Cont. In unit indicated BUSINESS CONDITIONS BUSINESS CONDITIONS Cont. Income payments (mill, dollars) :4 Wholesale prices (1926 = 100): Total 30 13,195v13,086 Total 49 106.8 107.1 107.1 Salaries and wages 30 8,488 P8.377 Farm products 49 131.1 131.5 129.9 Other 30 4,707 P4,709 Other than farm and food 49 100.2 100.5 100.8 Cash farm income (mill, dollars): Total 31 2,250 1,802 I,537 Livestock and products 31 1,057 956 P878 1945 Crops 31 1,153 830 P659 Govt. payments 31 40 16 Apr.- July- Oct.- Armed forces (mill, persons) 32 9.2 7.9 '6.*2 QUARTERLY FIGURES June Sept. Dec. Civilian labor force (mill, persons): To M ta a l le 3 3 3 2 3 5 5 3 . . 3 4 5 36 3 . . 1 3 5 37 3 . . 6 7 MONEY RATES Per cent per annum Female 33 18.2 17.2 16.2 Bank rates on customer loans: Unemployment 32 1.7 2.0 2.3 Total, 19 cities 23 2.50 2.45 2.09 Employment 32 51.7 51.4 51 New York City 25 2.20 2.05 1.71 Nonagricultural 33 43.3 44.2 44. Other Northern and Eastern cities. ... 25 2.55 2.53 2.23 Industr A ia g l ri p c r u o l d tu u r c a t l i on:4 33 8.4 7.2 6.8 Southern and Western cities 25 2.80 2.81 2.38 Total (1935-39 = 100) 35 168 163 P159 Groups (points in total index): SECURITY MARKETS In millions of dollars Durable manufactures 35 72.5 70.1 P63.4 Corporate security issues: Nondurable manufactures 35 73.9 73.0 P74.6 Net proceeds: Minerals 35 21.1 20.2 P21.1 All issues 28 1,208 2,139 1,636 New orders, shipments, and inventories Industrial 28 400 831 433 (1939 = 100): Railroad 28 435 459 315 New orders: Public utility 28 354 786 807 Total 36 '184 P190 New money: Durable 36 '171 P169 All issues 28 244 369 272 Shipments: Industrial 28 184 313 157 Total 36 '203 P194 Railroad 28 32 26 46 Durable 36 '202 P192 Public utility 28 13 5 41 Nondurable 36 '204 P195 Inventories: Total 36 '169 P167 1945 Durable 36 '174 P170 Nondurable 36 '164 P164 Mar. June Dec. Factory employment and pay rolls (1939 20 30 31 = 100): P E a m y p r l o o l y ls m ent 3 3 8 8 2 1 1 2 2 1 . . 5 6 2 1 1 2 5 1 . . 5 6 P122.2 CALL DATE FIGURES In billions of dollars Hours and earnings at factories: ALL MEMBER BANKS Weekly earnings (dollars) 39 '40.82 41.43 Loans and investments, total 10 90.52 99.43P107.14 Hourly earnings (cents) 39 '99.1 99.7 U. S. Govt. obligations, total 10 67.92 73.24 P78.31 Hours worked (per week) 39 '41.2 41.6 Bonds 11 (6) 40.27 Nonagricultural employment (mill, persons) :4 Certificates 11 (5) 15.58 Total 40 35.3 35.6 P36.2 Notes 11 (5) 14.72 Manufacturing and mining 40 12.7 12.7 P12.9 Bills 11 (5) 2.63 Trade 40 7.3 7.3 P7.7 Guaranteed obligations 11 (5) .03 Government 40 5.6 5.7 P5.5 Other securities, total 10 5.39 5.60 P6.05 Transportation and utilities 40 3.9 3.9 P3.9 State and local government obliga- Construction 40 1.0 1.1 Pi.2 tions 11 2.99 3.10 Construction contracts (3 mo. moving Other securities 11 2.40 2.50 average, mill, dollars):4 Loans, total 10 17.22 20.59 P22.79 Total 41 385 443 Commercial 11 (5) 7.10 Residential 48 81 104 Real estate 11 (5) 3.25 Resid O e t n h t e ia r l contracts (mill, dollars) :4 41 304 339 A B g ro ri k c e u r l s t ' ural 1 1 1 1 ( ( 5 5 ) ) 2 1 . . 5 1 3 3 Total 42 95 107 96 Demand deposits adjusted 10 61.17 59.13 Public 42 1 11 2 Private, total 42 94 96 94 CLASSES OF BANKS 1- and 2-family dwellings 42 68 82 72 Other 42 26 14 22 Central reserve city banks: Freight carloadings:4 Loans and investments, total 12 27.95 31.49 P32.07 Total (1935-39 = 100) 43 133 127 133 U. S. Govt. obligations 12 20.41 21.62 P21.79 Groups (points in total index): Other securities 12 1.47 1.55 Pl.62 Miscellaneous 43 73.0 71.5 73.5 Loans 12 6.07 8.32 P8.67 Coal 43 31.4 28.3 31.6 Demand deposits adjusted 12 18.60 17.80 All other 43 28.3 26.8 27.5 Time deposits 12 1.73 1.79 Department stores (1935-39 = 100) :* Reserve city banks: Sales 44 '225 216 226 Loans and investments, total 12 33.45 36.57 P40.10 Stocks 44 150 '141 156 U. S. Govt. obligations 12 25.30 27.52 »29.56 Exports and imports (mill, dollars): Other securities 12 1.80 1.89 *2.04 Exports 46 J>639 P736 Loans 12 6.35 7.15 P8.51 Excluding Lend-Leasc exports 46 P524 P548 Demand deposits adjusted 12 21.74 20.68 Imports 46 P322 >301 Time deposits 12 8.28 8.76 Excess of exports excluding Lend-Lease Country banks: exports 46 P201 P247 Loans and investments, total 13 29.13 31.37 P34.97 Cost of living (1935-39 = 100): U. S. Govt. obligations 13 22.20 24.09 P26.96 All items 47 '129.3 129.9 129.9 Other securities 13 2.12 2.16 P2.39 Food 47 140.1 141.4 141.0 Loans 13 4.81 5.11 P5.61 Clothing 47 '148.7 149.4 149.5 Demand deposits adjusted 13 20.84 20.66 Rent 47 108 3 Time deposits 13 10.54 11.26 * Estimated. P Preliminary. ' Revised. 1 Figures for other than Wednesday dates are shown under the Wednesday included in the weekly period. 2 Capacity base changed effective Jan. 2, 1946. Revised figures for earlier weeks are: Jan. 2, 83.8; Jan. 9, 85 .2; and Jan. 16, 79.5. 3 For charts on pages 20, 23, and 27, figures for a more recent period are available in the regular BULLETIN tables that show those series. 4 Adjusted for seasonal variation. 5 Figures available for June and December dates only. * Copies of the Chart Book may be obtained at a price of 50 cents each. MARCH 1946 339 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTERNATIONAL FINANCIAL STATISTICS PAGE Gold reserves of central banks and governments. . 341 Gold production 342 Gold movements . 342 Net capital movements to United States since January 2, 1935. . 343-348 Central banks 349-352 Money rates in foreign countries. 353 Commercial banks 354 Foreign exchange rates. . 355 Price movements: Wholesale prices 356 Retail food prices and cost of living. 357 Security prices 357 Tables on the following pages include the principal available statistics of current significance relating to gold, international capital transactions of the United States, and financial developments abroad. The data are compiled for the most part from regularly published sources such as central and commercial bank statements and official statistical bulletins, some data are reported to the Board directly. Figures on international capital transactions of the United States are collected by the Federal Reserve Banks from banks, bankers, brokers, and dealers in the United States in accordance with the Treasury Regulation of November 12, 1934. Back figures for all except price tables, together with descriptive text, may be obtained from the Board's publication, Banking and Monetary Statistics. 340 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS [In millions of dollars] End of month U S n ta i t t e e s d t g A i e n r n a - - 1 g B iu e m l- Brazil B I r n i d ti i s a h Canada Chile lo C m o b - ia Cuba C v z s a e lo k c - i h a o- m De a n rk - Egypt France m G a e n r- y Greece 1938—Dec. . m 14,512 431 581 32 274 192 30 24 83 53 55 2,430 29 27 1939—Dec 17,644 466 609 40 274 214 30 21 1 56 53 55 2,709 29 28 1940—Dec 21,995 353 734 51 274 27 30 17 1 58 52 52 2,000 29 28 1941—Dec 22,737 354 734 70 274 5 31 16 1 61 44 52 2,000 29 28 1942—Dec 22,726 1658 735 115 274 6 36 25 16 61 44 52 2,000 29 28 1943—Dec 21,938 1939 734 254 274 5 54 59 46 61 44 52 2,000 29 28 1944—Dec. 20,619 n 111 329 274 6 79 92 111 61 44 52 1,777 29 28 1945—Feb. .. . 20,506 409 732 340 274 6 80 95 126 61 44 52 1,777 28 Mar 20 419 409 715 341 274 5 80 97 131 61 44 52 1 777 28 Apr. . . 20,374 409 715 341 274 6 80 99 141 61 44 52 1,777 28 Atay 20 270 409 714 342 274 4 81 100 151 61 44 52 1 777 June 20,213 409 713 342 274 6 80 102 166 61 44 52 July 20 152 409 712 342 274 7 82 103 • 171 61 44 52 Aug 20,088 409 712 352 274 6 82 104 176 61 44 52 1,777 Sept 20 073 409 694 352 274 7 82 106 176 61 44 52 1 777 Oct 20,036 407 698 P357 274 5 82 114 186 61 44 52 1,540 Nov 20,030 404 711 P356 274 5 82 115 61 44 52 1,540 Dec. 20,065 716 7 82 127 61 38 1,090 1946—Jan 20,156 128 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 a e la w nd N w o a r y - Peru Poland Po g rt a u l - Ru n m ia a- A So fr u ic th a Spain 1938—Dec 37 26 193 164 80 29 998 23 94 20 85 69 133 220 3525 1939—Dec 24 26 144 164 90 32 692 23 94 20 484 69 152 249 1940—Dec. 24 26 120 164 140 47 617 23 484 20 59 158 367 1941—Dec 24 26 5164 235 47 575 23 21 59 182 366 42 1942—Dec. 24 34 4216 39 506 23 25 59 241 634 42 1943—Dec 24 92 203 500 23 31 60 316 706 91 1944—Dec. 24 128 222 500 23 32 60 814 105 1945—Feb. P128 221 500 23 30 60 834 106 Mar P128 220 500 23 30 60 848 108 Apr. P128 219 500 23 30 60 851 109 M^ay P128 219 500 23 30 60 865 109 June . P131 231 500 23 28 60 878 109 July P131 230 270 23 28 60 886 109 Aug. 255 270 23 28 60 909 109 Sept 255 270 23 28 60 938 108 Oct. 250 270 23 28 60 954 108 Nov.. . 296 270 23 28 60 943 108 Dec 294 270 28 914 1946—Jan.... 288 28 End of month S d w e e n - S l w a e n r i - t d z- T k u ey r- U K d n i o i n 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. O c tr o t i u h e n s e 6 - r Governmen : n g p o r l e d v i r o e u s s e rv fi e g s u 1 re n s ot included 1938—Dec 321 701 29 2,690 69 52 57 14 166 End of month U S n ta i t t e e s d U K n i i n t g ed - France Bel- 1935)—Dec 308 549 29 7 68 52 59 7 178 dom 1940—Dec 160 502 88 90 29 82 12 170 1941—Dec 223 665 92 100 41 483 12 166 1942—Dec 335 824 114 89 68 21 185 1938—Dec 80 2759 331 44 1943—Dec 387 964 161 121 89 45 229 1939—Mar 154 1 732 559 1944—Dec 463 1 052 221 157 130 37 245 May 477 June... 85 17 1945—Feb. . . 475 1,061 221 164 147 37 246 Sept. 164 3876 Mar 474 1 072 225 166 147 37 246 Dec 156 17 Apr. 472 1 103 225 168 161 39 246 1940—June 86 17 May . 470 1,105 225 173 161 39 247 Dec. .. 48 292 17 June.... 478 1 069 234 175 176 39 247 1941—June 89 17 Tuly 478 1 073 234 179 176 39 248 Dec 25 4151 17 Aug 479 1,084 234 189 186 39 248 1942—June... 8 17 Sept. 479 1,085 236 195 191 39 248 Dec. .. 12 17 Oct. 475 1 111 236 195 191 39 247 1943—June 11 17 Nov 474 1 109 236 195 202 39 r245 Dec 43 17 Dec 482 1 104 241 1 202 39 r248 1944—June 21 17 1946—jan 1 099 1 212 P248 Dec 12 17 1945—Mar.. . 32 June 81 17 T Revised. p Preliminary. Sept 20 1 Figures through March 1940 and for December 1942, December 1943, and December 1944 include, in addition to gold of the Central Bank held at home, gok of the Central Bank held abroad and gold belonging to the Argentine Stabilization Fund. 1 Reported at infrequent intervals or on de- 2 On May 1, 1940, gold belonging to Bank of Canada transferred to Foreign Exchange Con- layed basis: U. S.—Exchange Stabilization Fund trol Board. Gold reported since that time is gold held by Minister of Finance. (Special A/c No. 1); U. K.—Exchange Equal i- 3 Figure for December 1938 is that officially reported on Apr. 30, 1938. zation Account; France—Exchange Stabilization 4 Figures relate to last official report dates for the respective countries, as follows: Java— Fund and Rentes Fund Belgium—Treasury. Jan. 31, 1942; Norway—Mar. 30, 1940; P(3 and—July 31, 1939; Yugoslavia—Feb. 28, 1941. 2 Figure for end of September 5 Figure for February 1941; beginning Mar. 29, 1941, gold reserves no longer reported sepa- 3 Reported figure for total British gold reserves rately. on Aug. 31, 1939, less reported holdings of Bank 6 These countries are: Albania Algeria, Austra ia, Austria through Mar. 7, 1938 Belgian of England onthat date. Congo, Bolivia, Bulgaria, China, Costa Rica beginning July 1943, Danzig through Aug. 31, 4 Figure for Sept. 1, 1941. 1939, Ecuador, El Salvador, Estonia, Finland, Guatemala, Iceland, Ireland beginning February NOTE.—For available back figures and for de- 1943, Latvia, Lithuania Morocco, and Siam. Figures for certain of these countries have tails regarding specia internal gold transfers been carried forward from last previous official report. affecting the British and French institutions, see 7 Gold holdings of Bank of England reduced to nominal amount by gold transfers to British Banking and Monetary Statistics, p. 526, and Exchange Equalization tAccount during 1939. BULLETIN for February 1945, p. 190. NOTE.—For back figures, see Banking and Monetary Statistics, Tables 156-160, pp. 536-555, and for a description of figures, including details regarding special internal gold transfers affecting the reported data, see pp. 524-535 in the same publication. MARCH 1946 341 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 Y m e o a n r th or p U r o o . w u S d t o . u s S r i c l . d d R t e io .1 n r m e T o p o o n t r t a h te l l d y A So fr u ic th a d R e h s o i - A a fric A a W fr e ic s a t 2 I | C B o el n g g i o a ^ n U St n a i t t e e s d * J \ C ad a a n N 5 - orth M a e n x d - So C u o t b h l i o a m A - m I er C ic h a ile r N ag ic u a a - 7 Au li s a t 8 r O a t - h I | e B r In ri d ti i s a h 1 $1 = /J6/« grains of gold 9/wfine; i. e., an ounce of fine gold =$35. 1934.. 823,003 708,453366,795 24,264 12,153 6,549108,191104,023 23,135 12,045 8,350 1,166 30,559 11,223 1935.. 882,533 752,847377,090 25,477 13,625 7,159126,325114,971 23,858 11,515 9,251 868 31,240 11,468 1936.. 971,514 833,895 396,768 28,053 16,295 7,386152,509131,181 26,465 13,632 9,018 807 40,118 11,663 1937.. 1,041,576 893,384410,710 28,296 20,784 8,018168,159143,367 29,591 15,478 9,544 848 46,982 11,607 1938.. 1,136,360 958,770425,649 28,532 24,670 8,470178,143165,379 32,306 18,225 10,290 1,557 54,264 11,284 1939.. 1,208,705 ,020,297448,753 28,009 28,564 8,759196,391178,303 29,426 19,951 11,376 3,506 56,182 11,078 1940.. 1,297,349 ,094,264491,628 29,155 32,163 3 8,862210,109185,890 30,878 22,117 11,999 5,429 55,878 10,157 1941.. 1,288,945 ,089,395504,268 27,765 32,414 209,175187,081 27,969 22,961 9,259 7,525 51,039 9,940 1942.. 968,112494,439 26,641 29,225 130,963169,446830,000 20,882 6,409 8,623 42,525 8,960 1943.. 738,471448,153 23,009 19,740 48,808127,796 19,789 6,081 7,715 28,560 8,820 1944.. 663,960429,787 20,746 18,445 35,778101,980 19,374 7,131 7,865 16,310 6,545 1944— Dec.. 53,446 34,836 1,733 1,610 2,828 8,012 1,162 506 765 1,470 525 1945—Tan.. 55,199 36,216 1,674 1,610 2,463 8,166 1,882 486 672 1,470 560 Feb.. 50,782 33,698 1,610 1,575 2,342 7,432 1,379 372 590 1,260 525 Mar.. 54,703 36,458 1,686 1,610 2,446 8,004 1,382 542 615 1,365 595 Apr.. 54,096 35,937 1,718 1,610 2,328 7,831 1,836 526 560 1,225 525 May. 53,934 36,073 1,673 1,575 2,563 7,614 1,736 528 631 1,190 350 June. 53,213 35,800 1,645 1,575 2,516 7,426 1,460 574 574 1,295 350 July. 53,373 36,311 1,679 1,610 2,078 7,357 1,518 538 393 1,400 490 Aug.. 53,560 34,199 1,668 1,610 3,528 7,411 1,459 464 595 2,065 560 Sept.. 52,953 35,313 1,680 1,610 2,926 7,404 1,400 370 570 1,190 490 Oct.. 55,937 36,809 1,664 1,610 3,836 8,034 1,319 425 559 1,190 490 Nov.. P55,017 36,005 /1,664 1,400 4,020 7,726 1,224 '425 592 1,470 490 Dec. P54.679 35,043 /I,664 1,470 3,832 8,391 n, 224 /425 634 n, 470 525 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. / Figure carried forward. 1 Annual figures through 1940 are estimates of U. S. Mint; annual figure for 1941 based on monthly estimates of American Bureau of Metal Statistics. 2 Beginning April 1941, figures are those reported by American Bureau of Metal Statistics. Beginning January 1944 they represent Gold Coast only. 3 Beginning May 1940 monthly figures no longer reported. Annual figure for 1940 estimated at three times production for first four months of the year. * Includes Philippine Islands production received in United States. Annual figures are estimates of United States Mint. Monthly figures represent estimates of American Bureau of Metal Statistics, those for 1944 having been revised by adding to each monthly figure $59,421 so that aggregate for the year is equal to annual estimate compiled by Bureau of Mint in cooperation with Bureau of Mines. 6 Figures for Canada beginning 1944 are subject to official revision. 6 Beginning April 1942, figures no longer reported. Annual figure for 1942 is rough estimate based on reported production of $7,809,000 in first three months of year. 7 Gold exports, reported by the Banco Nacional de Nicaragua, which states that they represent approximately 90 per cent of total production. 8 Beginning December 1941, figures are those reported by American Bureau of Metal Statistics. For the period December 1941-December 1943 they represent total Australia; beginning January 1944, Western Australia only. 9 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; July 1938, p. 621; June 1938, p. 540; April 1933, pp 233-235; and Banking and Monetary Statistics, p. 524. For annual estimates compiled by the United States Mint for these and other countries, in the period 1910-1941, see Banking and Monetary Statistics, pp. 542-543. GOLD MOVEMENTS UNITED STATES [In thousands of dollars at approximately $35 a fine ounce] Net imports from or net exports (—) to: m Y o o e n r a t r h im T n p o e o t t a r l ts U K d n i o i n m t g ed - France g B iu e m l- N la e e n r t d - h s - S d w en e- S l w a e n r it - d z- Canada Mexico c A a O L n m a t h t e R i e r n i r e - - P p i I h i p s n i - - l e - t A ra u l s i - a A So fr u ic th a Japan I B n is r d i h i t a - c o o A th u l e n l r publics lands tries 19341 1,131,994 499,870 260,223 8,902 94,348 12,402 86,829 30,270 28,153 12,038 1,029 12 476,820 21,095 1935 1,739,019 315,727 934,243 3227,185 968 95,171 13,667 29,359 15,335 3,498 65 75,268 28,529 1936 1,116,584 174,093 573,671 3,351 71,006 2 7,511 72,648 39,966 30,79021,513 23,280 8 77,892 20,856 1937 1,585,503 891,531 -13,710 90,859 6,461 654,452 111,480 38,482 39,48525,427 34,713 181246,46450,762 8,910 1938 1,973,569 1,208,728 81,135 15,488 163,049 60,146 1,363 76,315 36,472 65,23127,880 39,162 401168,74016,159 13,301 1939 3,574,151 1,826,403 3,798165,122341,618 28,71586,987 612,949 33,610 57,02035,636 74,250 22,862165,60550,956 t68,623 1940 4,744,472 633,083 241,778 977 63,260 161,48990,3202,622,330 29,880 128,25938,627 103,777184,756111,73949,989 3 284,208 1941 982,378 3,779 1 1 1,747 899 412,056 16,791 61,86242,678 67,492292,893 9,444 9,665 * 63,071 1942 315,678 1,955 5 208,917 .40,016 39,680 321 528 4,119 129 20,008 1943 68,938 88 66,920 -3,287 13,489 152 307 -8,731 1944 -845,392 -695,483 46,210 -109,695 -108,560 199 3,572 18,365 1945 -106,250 160 53,148 15,094 -41,748 "io3 106 357 -133,471 1945 June -83,758 27 218 315 1,815 20 -86,152 July -6,979 481 11,524 1,583 22 -20,589 Aug. -12,339 848 517 1,192 100 2 16 -15,014 Sept. 13,496 41 11,796 272 951 19 11 407 Oct. -4,317 463 329 1,115 12 -6,236 Nov. 789 272 355 1,698 11 15 — 1,562 Dec. 19,253 64 37,131 247 -18,499 3 9 297 1946 Jan.p 154,070 151,270 391 1,729 3 23 654 P Preliminary. 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 $28,097,000 from China and Hong Kong, $15,719,000 from Italy, $10,953,000 from Norway, and $13,854,000 from other countries. 3 Includes $75,087,000 from Portugal, $43,935,000 from Italy, $33,405,000 from Norway, $30,851,000 from U. S. S. R., $26,178,000 from Hong Kong, $20,583,000 from Netherlands Indies, $16,310,000 from Yugoslavia, $11,873,000 from Hungary, $10,416,000 from Spain, and $15,570,000 from other countries. 4 Includes $44,920,000 from U. S. S. R., and $18,151,000 from other countries. 6 Includes $133,980,000 to China and $509,000 from other countries. NOTE.—For back figures see Banking and Monetary Statistics, Table 158, pp. 539-541, and for description of Statistics, see p. 524 in the same publication. 342 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTERNATIONAL CAPITAL TRANSACTIONS OF THE UNITED STATES NET CAPITAL MOVEMENT TO UNITED STATES SINCE JANUARY 2, 1935 [Net movement from United States, (—). In millions of dollars] TABLE 1.—TOTAL CAPITAL MOVEMENT, BY TYPES Increase in foreign banking Decrease Foreign Domestic funds in U. S. in U. S. securities:. securities: Inflow in From Jan. 2, 1935, through— Total banking Return Inflow of brokerage funds of U. S. foreign balances Total Official Other abroad funds funds 1935—Mar. (Apr. 3) 259.5 57.7 -2.0 59.7 155.0 31.8 -6.2 21.1 June (July 3) 616.0 213.8 6.1 207.7 312.8 43 7 15.8 29.8 Sept. (Oct. 2) 899.4 350.7 -4.5 355.2 388.6 40.1 90.3 29.8 Dec. (Jan. 1, 1936) . . .. 1,412.5 603.3 9.8 593.5 361.4 125.2 316.7 6.0 1936—Mar. (Apr. 1) 1,511.1 578.4 44.4 534.0 390.3 114.4 427.6 .4 June duly 1) 1,949 2 779 0 35.9 743.1 449.0 180 5 524.1 16.5 Sept. 30 2,283.3 898.5 37.4 861.1 456.2 272.2 633.3 23.2 Dec. 30.. 2,608.4 930.5 81.1 849.4 431.5 316.2 917.4 12.9 1937—Mar. 31 , 2,931.4 1,121.6 62.8 1,058.8 411.0 319.1 1.075.7 4.1 June 30 3,561.9 1,612.4 215.3 1,397.1 466.4 395.2 L,069.5 18.3 Sept. 29 3,911.9 1,743.6 364.6 1,379.0 518 1 493 3 1,125.1 31.9 Dec 29 3,410.3 1,168.5 243.9 924.6 449.1 583.2 L.162.0 47.5 1938—Mar. 30 3,207 2 949.8 149.9 799.9 434 4 618 5 L,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 ,125.4 64.1 Dec. (Jan. 4, 1939) 3,844.5 1,425.4 238.5 1,186.9 510.1 641.8 ,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 Tune (Tuly 3) . 5,440.7 2,830.1 922.3 1,907.8 684 1 785 6 1L,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 1,958.3 775.1 803.8 888.7 100.9 1941—Mar. (Apr. 2) 5,526.5 3,148 8 1,307.7 1,841.0 767 4 812 7 701.8 95.9 June (July 2) , . 5,575.4 3,193.3 1,375.1 1.818.2 818.6 834.1 631.2 98.2 Sept (Oct. 1) 5,510 3 3,139 5 1,321.7 1,817 7 805 3 841 1 623.5 100.9 Dec. 31 5,230.7 2,856.2 1,053.7 L,802.6 791.3 855.5 626.7 100.9 1942—Mar (Apr. 1) 5,082.4 2,684.0 932.0 1,752.0 819.7 849.6 624.9 104.3 June 302 5,495.3 3,075.9 1,211.7 1,864.2 842.3 838.8 632.0 106.2 Sept. 30 5,654.9 3,212.6 1,339.1 1,873.5 858.2 830.5 646.1 107.5 Dec. 31 5,835 0 3,320.3 1,412.0 L.908.3 888.8 848 2 673.3 104.4 1943—Mar. 31 6,147.1 3,643.4 1,723.1 1,920.3 898.7 810.5 685.9 108.6 June 30 6,506.4 4,002.6 2,071.4 1,931.2 896.9 806.8 687.9 112.1 Sept. 30 6,771.3 4,130.6 2,190.9 1.939.7 888.6 929.3 708.1 114.8 Dec. 31 7,118 6 4,496.3 2,461.5 2,034.8 877.6 925 9 701.1 117.8 1944—jan. 3i 7,272.9 4,658.2 2,649.3 2,009.0 870.8 931.7 695.1 117.0 Feb. 29. 7 418 6 4 833 2 2,815.7 2,017.5 843 5 924 2 698.8 118.9 Mar. 31 7,462.9 . 4,885.4 2,856.0 2,029.4 868.0 904.1 685.8 119.6 Apr. 30 7,464 3 4,881 0 2,780.5 2,100.6 873 4 905 4 686.2 118.3 May 31 7,458.9 4,882.7 2,726.8 2,155.9 872.9 903.2 680.1 119.9 June 30 7,459.6 4,851.7 2,661.4 2,190.3 856.6 929.8 702.4 119.1 July 31 7,423 4 4,740.8 2,622.9 2,117.9 850.6 1,005.8 706.9 119.3 Aug 31 7 440 9 4 732 3 2 589 5 2,142.8 869 7 1 009 7 709.4 119.9 Sept. 30 7,430.9 4,661.2 2,498.8 2,162.3 883.5 1,026.2 737.8 122.2 Oct. 31 7,460 2 4,680 3 2,489.8 2,190.4 891.3 1,025 8 735.8 127.1 Nov. 30 7,530.5 4,775.1 2,541.0 2,234.1 872.7 1,025.3 732.4 125.0 Dec. 31 7,475.7 4,612 5 2,372.2 2,240.3 805.8 1,019.4 911.8 126.3 1945—jan 3i 7 633 1 4 723 9 2 468 7 2,255.2 848 2 1,025 9 909.0 126.1 Feb. 28 7,755.4 4,887.3 2,587.3 2,300.0 859.8 1,033.4 845.0 129.9 Mar. 31 7,739 1 4,909 9 2,555.6 2,354.3 848.5 1,029.6 820.6 130.5 Apr 30 7 797 3 4 958 2 2 588 9 2,369.2 844 7 1,061 6 802.5 130.4 May 31 7,857.7 5,004.5 2,634.0 2,370.5 845.7 1,088.9 785.0 133.6 June 30 8,071 9 5,261.4 2,903.6 2,357.9 760.4 1,069.9 848.4 131.8 July 31 8 296 8 5 442 6 3 078 8 2,363.9 810 2 1 073 7 843.2 127.1 Aug 31 ••8,353 2 5,505.0 3,096.2 2,408.8 ••829.0 1,058.4 831.6 129.1 Sept 30 »*8 469 9 5,594 8 3,107.5 2,487.2 f-865.3 ''1,056.9 818.4 134.6 Oct 31 8,541.1 35,731.0 33,110.0 32,620.9 3875.5 1,005.2 795.1 3134.4 r Revised. 1 This category made up as follows: through Sept. 21, 1938, funds held by foreign central banks at the Federal Reserve Bank of New York; beginning Sept. 28, 1938, also funds held at commercial banks in New York City by central banks maintaining accounts at the Federal Reserve Bank of New York; beginning July 17, 1940, also funds in accounts at the Federal Reserve Bank of New York which had been transferred from central bank to government names; beginning with the new series commencing with the month of July 1942, all funds held with banks and bankers in the United States by foreign central banks and by foreign central governments and their agencies (including official purchasing missions, trade and shipping missions, diplomatic and consular establishments, etc.). 2The weekly series of capital movement statistics reported through July 1, 1942, was replaced by a monthly series commencing with July 1942. Since the old series overlapped the new by one day, the cumulative figures were adjusted to represent the movement through June 30 only. This adjustment, however, is incomplete since it takes into account only certain significant movements known to have occurred on July 1. Subsequent figures are based upon new monthly series. For further explanation, see BULLETIN for January 1943, p. 98. 3 Amounts outstanding Oct. 31, in millions of dollars: total foreign banking funds in United States, 6,396.8, including official funds, 3,747.6 and other funds, 2,649.2; United States banking funds abroad, 260.0; and brokerage balances (net due "foreigners"), 57.5. NOTE.—Statistics reported by banks, bankers, brokers, and dealers. For full description of statistics see Banking and Monetary Statistics, pp. 558-560; for back figures through 1941 see Tables 161 and 162, pp. 574-637, in the same publication, and for those subsequent to 1941 see BULLETIN for September 1945, pp. 960-974. 343 MARCH 1946 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTERNATIONAL CAPITAL TRANSACTIONS OF THE UNITED STATES—Continued NET CAPITAL MOVEMENT TO UNITED STATES SINCE JANUARY 2, 1935—Continued [Net movement from United States, (—). In millions of dollars] TABLE 2.—TOTAL CAPITAL MOVEMENT, BY COUNTRIES From Jan. 2, 1935, through— Total U K d n i o i n m t g ed - France N la e e n r t d - h s - S l w a e n r i - t d z- m G a e n r- y Italy E O u t r h o e p r e E T u o r t o a p l e C a a d n a - A L m a e t r i i n ca Asia1 ot A he ll r1 1935—Dec. (Jan 1, 1936). . 1,412.5 554.9 210.2 114 5 130.4 36 6 24.0 130.0 1,200.6 (2) 70.9 128.3 12.7 1936—Dec. 30 2,608.4 829.3 299.5 229 7 335.5 83.1 45.6 228.5 2,051.3 150.5 201.2 184.0 21.4 1937—Dec. 29 3,410.3 993.7 281.7 311 9 607.5 123 9 22.1 312.2 2,653.0 106.3 410.6 224.6 15.9 1938—Dec. (Jan. 4, 1939). . 3,844.5 1,183.8 339.6 328 6 557.5 140 5 32.2 472.0 3,054.2 155.3 384.6 214.2 36.2 1939—Dec. (Jan. 3, 1940). . 5,021.2 1,101.3 468.7 470 3 773.0 165 9 58.0 752.9 3,790.1 229.4 483.4 431.0 87.4 1940—Dec. (Jan. 1, 1941). . . 5,727.6 865.2 670.3 455 6 911.5 175 9 55.4 922.7 4,056.6 411.7 606.8 562.3 90.2 1941—Dec. 31 5,230.7 674.1 639.9 464.4 725.7 179 9 50.5 891.8 3,626.3 340.5 567.5 567.7 128.6 1942—Dec. 31 5,835.0 837.8 625.9 474.0 592.1 179 5 48.1 850.9 3,608.1 425.1 835.8 787.7 178.3 1943—Dec. 31 7,118.6 1,257.7 636.8 487.7 629.1 178 6 48.2 954.8 4,192.8 760.3 951.0 1,013.1 201.4 1944—Nov. 30 7,530.5 1,078.8 635.2 502.7 654.4 179 0 61.5 982.7 4,094.2 1,015.6 1,194.7 1,062.7 163.3 Dec. 31 7,475.7 1,090.0 585.7 506.2 664.3 179 1 63.1 993.3 4,081.8 976.4 1,193.7 1,020.9 203.0 1945—Jan. 31 7,633.1 1,008.6 566.6 503.3 659.6 179.0 66.7 965.2 3,949.0 1,030.8 1,250.2 1,199.2 204.1 Feb. 28 7,755.4 1,053.6 558.3 506.3 666.4 179 0 69.8 970.5 4,003.9 1,081.3 1,262.4 1,200.1 207.7 Mar. 31 7,739.1 1,048.9 506.5 505.7 673.0 179 2 72.0 967.6 3,952.9 1,135.4 1,234.2 1,205.3 211.4 Apr. 30... 7,797.3 1,026.0 477.6 506.3 670.7 179 2 75.5 990.5 3,925.8 1,194.9 1,263.0 1,202.9 210.7 May 31 7,857.7 1,029.3 453.0 506.8 677.1 179 0 77.5 1,003.6 3,926.4 1,204.7 1,324.3 1,193.8 208.5 June 30 8,071.9 1,066.2 521.7 513.0 679.7 179 0 80.0 1,017.9 4,057.5 1,276.7 1,353.8 1,175.5 208.4 July 31 8,296.8 1,075.0 542.4 516.1 689.9 179 0 85.2 1,053.0 4,140.6 1,361.4 1,411.7 1,175.5 207.6 Aug. 31 '•8,353.2 1,018.8 499.8 518.1 695.6 179 2 89.6 1,059.2 4,060.2 1,441.8'1.392.11,238.7 220.3 Sept. 30 '8,469.9 946.7 463.9 518.1 698.4 179 3 94.2 1,134.2 4,034.8 rl,469.9 rl,413.3 1,316.3 235.2 Oct. 31 8,541.1 937.8 510.9 523.8 705.2 179 5 98.0 1,118.1 4,073.2 1,477.9 1,404.7 1,321.3 264.1 TABLE 3.—INCREASE IN FOREIGN BANKING FUNDS IN U. S., BY COUNTRIES From Jan. 2, 1935,through— Total U K d n i o i n m t g ed - France N la e e n r t d - h s - S l w a e n r i - t d z- m G a e n r- y Italy E O u t r h o e p r e E T u o r t o a p l e C a a d n a - A L m a e t r i i n ca Asia1 ot A he ll r1 1935—Dec. (Jan.1, 1936)... 603.3 128.6 129.6 55.7 72.4 -.8 7.3 60.7 453.5 46.0 33.5 58.8 11.5 1936—Dec.30 930.5 163.5 144.2 65.9 109.8 2.7 23.0 79.7 588.9 86.8 149.3 90.4 15.2 1937—Dec.29. . 1,168.5 189.3 111.8 76.3 288.4 9.6 6.9 109.4 791.7 76.3 166.3 126.2 8.0 1938—Dec. (Jan.4, 1939)... 1,425.4 364.0 155.3 87.9 205.1 -11.8 1.7 208.6 1,010.7 101.6 127.6 163.3 22.2 1939—Dec. (Jan.3, 1940). . . 2,430.8 376.1 256.1 190.9 362.7 -20.1 19.7 470.0 1,655.4 174.5 215.1 325.4 60.5 1940—Dec. (Jan.1,1941)... 3,159.0 293.3 458.0 160.3 494.7 -22.9 .9 603.7 1,986.3 334.1 326.4 450.9 61.3 1941—Dec.31. .. 2,856.2 328.6 416.5 161.0 326.2 -23.1 -3 .4 561.1 1,766.9 273.1 296.7 418.0 101.6 1942—Dec.31 3,320.3 493.3 394.5 170.0 166.3 -22.7 -6 .2 502.5 1,697.5 399.5 482.8 598.7 141.9 1943—E>ec#31. .. 4 496.3 939.4 404.1 176.7 192 7 -23.7 -6 9 589.0 2,271.2 704.7 578.7 779.7 162.0 1944—Nov. 30. . 4,775.1 789 7 413.8 190 1 214.4 -23.6 5.7 591 0 2,181.2 848.7 784.8 828.9 131.5 Dec. 31. 4 612 5 804 4 356 6 193 1 221 4 —23.4 70 634 7 2,193.7 818.6 794.7 635 9 169 7 1945—Jan. 31 4,723.9 726 4 338.9 1900 219.8 -23.4 10.7 570 5 2,032.9 868.1 848.7 804.5 169.7 Feb. 28. .. 4 887 3 777 0 329 6 192 6 227 1 —23.4 n 576 7 2,093.2 962.3 855.4 803 8 172 5 Mar.31 4,909.9 772 9 286.4 192 2 234.5 -23.3 15.7 582 8 2,061.31,021.2 842.5 809.3 175.7 Apr. 30. .. 4,958 2 758 s 258 3 192 ? 234.1 -23.3 19 1 606 8 2,045.9 1,056.8 872.0 808.3 175 2 May 31. . 5,004.5 770 7 235.0 192 7 240.1 -23.5 22.5 619 7 2,057.3 1,053.4 913.5 807.7 172.7 June 30. .. 5,261.4 800.s 292.2 196.7 243.2 -23.5 ?S 6 670 0 2,202.7 1,159.3 955.4 770.5 173.5 July 31. .. 5,442 6 810 6 318 8 199 ? 250 6 -23.5 29 ? 706 8 2,291.7 1,241.8 979.2 757.6 172 3 Aug.31 5,505.0 762 6 276.6 201 4 255.8 -23.4 33.6 672 4 2,179.01,341.9 965.8 834.7 183.6 Sept.30. 5,594.8 684 8 233.3 204 0 259.7 -23.4 38.2 744 8 2,141.41,384.1 989.0 882.5 197.6 Oct. 31 5,731.0 678 9 280.2 211 4 266.5 -23.2 41.7 729 9 2,185.41,443.9 976.2 899.8 225.7 TABLE 4.—DECREASE IN U. S. BANKING FUNDS ABROAD, BY COUNTRIES From Jan. 2, 1935, through— Total U K n i i n t g e - d France N e e r t - h- Sw er i - tz- m G a e n r- y Italy E O u t r h o e p r e E T u o r t o a p l e C a a d n a - A L m a e t r i i n ca Asia1 ot A he ll r* dom lands land 1935—Dec. (Jan. 1, 1936) 361.4 208.8 48.1 -.4 1.6 29.7 13.7 8.8 310.2 -4.6 20.1 37.3 -1.6 1936—Dec. 30 431.5 178.0 62.0 -3.3 2.7 66.0 16.3 22.0 343.7 36.9 24.9 30.4 -4.4 1937—Dec. 29 449.1 207.4 65.3 -4.4 2.6 105.1 6.5 26.9 409.3 -21.7 51.6 18.7 -8.7 1938—Dec. (Jan. 4, 1939) 510.1 206.2 68.4 -5.6 2.6 141.7 13.7 33.8 460.9 35.9 66.8 -46.5 -7.0 1939—Dec. (Jan. 3, 1940) 650.4 252.2 73.8 12.9 2.9 177.8 15.5 28.4 563.5 56.5 52.6 -21.5 1940—Dec. (Jan. 1, 1941) 775.1 269.2 74.6 17.7 6.5 191.6 25.3 49.8 634.7 60.3 43.2 34.8 2.1 1941—Dec. 31 791.3 271.2 76.9 17.6 5.4 196.8 25.8 53.6 647.4 62.7 17.7 64.7 -1.2 1942—Dec. 31 888.8 279.4 77.8 18.1 6.6 196.7 26.2 56.8 661.5 58.6 68.3 93.8 6.6 1943—Dec. 31 877.6 272.1 77.9 18.3 5.1 196.9 26.2 60.0 656.5 55.1 55.7 102.7 7.5 1944—Nov. 30 872.7 267.4 77.7 18.3 4.8 196.9 26.2 70.9 662.2 64.9 51.2 96.0 -1.6 Dec. 31 805.8 266.1 77.7 18.3 6.8 196.9 26.2 34.6 626.6 64.8 37.0 77.7 1945—Jan. 31 848.2 266.2 77.6 18.3 6.2 196.9 26.2 70.7 662.0 61.8 36.1 87.6 .8 Feb. 28 859.8 264.6 77.6 18.3 7.3 196.9 26.2 70.3 661.2 68.1 40.7 88.2 1.7 Mar. 31 848.5 268.8 77.6 18.3 7.2 196.9 26.2 70.4 665.3 69.0 23.9 88.1 2.2 Apr. 30 844.7 266.6 77.6 18.1 7.2 196.9 26.2 70.6 663.3 69.9 23.0 86.4 2.1 May 31 845.7 261.5 77.8 18.2 7.3 196.9 26.2 70.1 658.0 67.3 40.1 77.9 2.4 June 30 760.4 264.1 77.8 18.0 2.7 196.9 26.2 30.9 616.5 39.1 23.5 79.9 1.5 July 31 810.2 267.2 77.8 18.3 4.5 196.9 26.2 30.3 621.2 47:7 58.2 81.4 1.8 Aug. 31 '829.0 260.4 77.8 18.2 6.1 196.9 26.2 69.4 655.0 51.4 '51.4 68.4 2.9 Sept. 30 '865.3 267.1 77.8 18.0 5.4 196.9 26.2 70.9 662.5 53.3 '47.4 98.3 3.8 Oct. 31 875.5 270.5 78.1 18.0 5.1 196.9 26.4 69.4 664.4 60.7 54.4 91.7 4.2 ' Revised. * Prior to Jan. 3, 1940, the figures under Asia represent Far East only, the remaining Asiatic countries being included under "All other." * Inflow less than $50,000. 344 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTERNATIONAL CAPITAL TRANSACTIONS OF THE UNITED STATES—Continued NET CAPITAL MOVEMENT TO UNITED STATES SINCE JANUARY 2, 1935—Continued [Net movement from United States, (—). In millions of dollars] TABLE 5.—FOREIGN SECURITIES: RETURN OF U. S. FUNDS, BY COUNTRIES (Net Purchases by Foreigners of Foreign Securities Owned in U. S.) From Jan. 2, 1935,through— Total U K d n i o i n m t g e - d France N la e e n r t d - h s - ' S l w a e n r i - t d z- m G a e n r- y Italy E O u t r h o e p r e E T u o r t o a p l e C a a d n a - A L m a e t r i i n ca Asia1 ot A he ll r1 1935—Dec. (Jan.1, 1936)... 125.2 67.8 6.8 7.4 -1.2 13.3 2.9 46 1 143.1 -39 .7 12.7 7.9 1.1 1936—Dec.30. .. 316.2 116.1 18.2 10.4 13.7 22.5 9.4 87.9 278 3 1.7 15.7 17.0 3.5 1937—Dec.29 583 9 136 8 22 8 21. 30.4 26.6 13.5 115. 366.4 10 S m 0 ?4 S 6 8 1938—Dec. (Jan.4, 1939)... 641.8 127.7 26.1 27.3 36.1 33.5 22.0 167.8 440.6 -9 .7 167.4 33.8 9.7 1939—Dec. (Jan.3, 1940). . . 725.7 125.5 42.1 29.4 45.0 36.6 27.6 189.0 495.2 -7 .6 184.0 42.8 11.3 1940—Dec. (Jan.1,1941). . . 803.8 128.6 43.4 31.0 46.0 36.5 28.1 196 4 510 0 25.0 202.3 53.0 13.5 1941—Dec.31 855 127 6 51 6 31 s 44 36.5 28.1 201.8 521 3 4 1 61 16 6 1942—Dec.31. . 848.9 4 S? 4 31.6 44.9 36.5 28.0 207 6 526 3 -3 0 ?4e> 4 61 5 18.0 1943—Dec.31 925.9 127.6 50.6 33.0 44.7 36.5 27.9 210 1 5303 41.2 272.3 62.2 19.9 1944—Nov.30 1 025 127 0 50 9 33.6 44.4 36.5 27.7 210 4 530 4 in 5 ?99 0 61 4 21 1 Dec. 31 1,019.4 126.5 51.0 33.6 44.5 36.5 27.6 210 4 530 1 104.9 302.0 61.3 21.0 1945—jan. 31. . 1,025 9 124 8 510 33.6 44. 36.5 27.6 210 4 528 4 111 S 303 61 3 21.1 Feb. 28 1 033 125 9 51 9 33 6 44 7 36.5 27.6 210 529 1 118 1 7 61 s 21 0 Mar.31 . 1,029 6 0 S1 4 33. 6 44.7 36.5 27.6 210 •^ 528 0 in 9 30S 1 61 5 21.1 Apr. 30 1 0616 121 6 51 33 44 7 36.5 27.6 210 1 525 4 147 1 306 1 61.9 21 2 May 31 . 1,088.9 120 8 SI 2 33. 5 44. 5 36.5 27.6 210 0 524 1 171 4 310 4 61 7 21.2 June 30. . 1,069.9 118 9 S1 3 33. 44.7 36.5 27.6 210.1 577 S 15? 0 317 4 61 7 21.3 July 31. . 1,073.7 119 0 S1 33. S 45 0 36.5 27.6 210 1 522 8 1 314 7 61 7 21.3 31 1 058 119 o 51 9 33 s 45 0 36.5 27.6 210 1 522 9 1S5 7 S16 s 61 7 21 7 Sept.30 rl,056 9 119 1 S1 9 33 45 36.5 27.6 210 9 523 9 8 317 6 61 8 21.8 Oct. 31. . 1,005 2 119.2 51.1 33 7 45 5 36.5 27.6 211 1 524.6 82.1 314.9 61.8 21.9 TABLE 6.—DOMESTIC SECURITIES: INFLOW OF FOREIGN FUNDS, BY COUNTRIES (Net Purchases by Foreigners of U. S. Securities) * From Jan. 2, 1935, through— Total U K d n i o i n m t g e - d France N la e e n r t d - h s - S l w a e n r i - t d z- m G a e n r- y Italy E O ur th op er e E T u o r t o a p l e C a a d n a - A L m a e t r i i n ca Asia1 ot A he ll r1 1935—Dec. (Jan. 1, 1936). . . 316.7 149.8 23.4 50.5 55.1 -5.4 -.1 12.9 286.2 2.8 3.7 21.4 2.6 1936—Dec. 30 917.4 367.7 64.7 157.6 200.2 -7.5 -3.3 38.5 818.0 32.6 15.5 44.1 7.1 1937—Dec. 29 1,162.0 448.7 70.3 213.8 275.3 -17.4 -4.9 55.7 1,041.6 37.6 18.2 54.7 9.8 1938—Dec. (Jan. 4, 1939). . . 1,219.7 472.6 76.9 212.1 304.1 -22.8 -5.5 56.6 1,094.1 25.7 23.7 65.2 11.1 1939—Dec. (Jan. 3, 1940) . . . 1,133.7 328.1 76.6 227.7 344.7 -28.2 -4.9 60.4 1,004.4 -2.6 30.1 87.6 14.3 1940—Dec. (Jan. 1, 1941). .. 888.7 157.1 74.4 233.2 348.1 -29.1 2.7 64.9 851.3 -18.4 25.6 17.6 12.6 1941—Dec. 31 626.7 -70.1 74.9 236.7 336.4 -30.1 -i 67.3 615.0 -44.7 28.1 17.5 10.9 1942—Dec. 31 673.3 -77.6 80.5 236.9 360.5 -30.9 -!i 75.3 644.7 -45.1 35.2 27.7 10.9 1943—Dec. 31 701 1 — 100 3 82 7 239.9 367.3 -30.8 .6 86.3 645.7 -58.2 40.5 62.5 10.6 1944—Nov. 30 732.4 -123.5 70.0 239.4 369.2 -30.8 1.5 100.5 626.3 -28.2 53.3 70.4 10.6 Dec. 31 911.8 -125.4 77.3 239.0 368.5 -30.8 1.9 103.2 633.7 -28.1 54.9 240.5 10.7 1945—Jan. 31 909 0 — 127 4 77 2 239 0 366 1 -30.8 1.8 103.0 629 0 -27.4 55.7 241 1 10 7 Feb. 28. 845 0 -131.7 76.9 239.1 363.3 -30.8 2.1 102.4 621.4 -84.2 55.4 241.9 10.6 Mar. 31 820 6 — 135 4 68 0 239 1 362 2 —30.8 2.1 93.7 598 9 -85.7 55.2 241 7 10 5 Apr. 30 802 5 — 139.2 67.1 239.4 360.1 -30.8 2.2 92.5 591.2 -95.9 55.1 241.9 10.3 May 31 785 0 — 142 8 66 4 239 3 359 4 -30.7 .8 93.5 585 9 -106.7 52.8 242 7 10 3 June 30 848.4 -138.9 77.6 241.3 363.1 -30.7 2.2 96.4 611.0 -91.7 58.5 260.4 10.3 July 31 843 2 — 140 3 71 7 240 9 363 5 -30.7 1.9 95.3 602 1 -98.5 57.2 272 2 10 2 Aug. 31 831.6 -141.5 71.1 240.7 362.0 -30.7 1.8 96.5 600.0 -105.4 56.1 270.9 10.0 Sept. 30 818 4 — 143 4 78 5 237.8 360.2 -30.7 1.8 96.4 600.8 -117.9 55.1 270.6 9 8 Oct. 31 795.1 -149.9 78.3 235.5 360.9 -30.7 1.9 96.4 592.4 -126.4 54.6 264.4 10.0 TABLE 7.—INFLOW IN BROKERAGE BALANCES, BY COUNTRIES (The Net Effect of Increases in Foreign Brokerage Balances in U. S. and of Decreases in Balances Held by Brokers and Dealers in U. S. with Brokers and Dealers Abroad) From Jan. 2, 1935, through— Total U K d n i o i n m t g e - d France N la e e n r t d - h s - S l w a e n r i - t d z- m G a e n r- y Italy E O u t r h o e p r e E T u o r t o a p l e C a a d n a - A L m a e t r i i n ca Asia* ot A he ll r1 1935—Dec. (Jan. 1, 1936) . . . 6.0 2.4 1.3 2.5 -.2 .1 1.4 7.6 -4.5 1.0 2.9 -.9 1936—Dec. 30 . . 12 9 4 0 10.4 — .9 9 1 — .7 .3 .4 22.6 -7.6 —4 2 2 1 (3) 1937—Dec. 29 47.5 11.5 11.5 5.0 10.8 .1 5.0 44.0 3.5 -.5 .5 1938—Dec. (Jan. 4, 1939). . . 47.6 13.4 12.9 6.8 9.6 9 .2 5.2 47.9 1.8 -.9 -1.5 .3 1939—Dec. (Jan. 3, 1940). . . 80.6 19.4 20.1 9.3 17.8 -.1 .1 5.0 71.6 8.7 1.6 -3.4 2.1 1940—Dec. (Jan. 1, 1941). . . 100.9 17.0 19.9 13.4 16.2 -.2 .2 7.9 74.3 10.7 9.2 6.0 .7 1941—Dec. 31 100.9 16.8 19.9 17.6 13.5 -.2 .2 8.0 75.7 14.1 3.9 6.3 8 1942—Dec. 31 . 104 4 17 4 20.7 17.5 13.7 — .1 .2 8.7 78 1 15.2 4.2 6 0 9 1943—Dec. 31 117.8 18.8 21.5 19.9 19.3 -.2 .3 9.4 89.1 17.6 3.8 6.0 1.3 1944—NOV. 30 125.0 18.2 22.7 21.3 21.6 -.1 .3 10.0 94.1 16.7 6.4 6.0 1.8 Dec. 31 126 3 18 5 23.1 22 3 23.0 (3) .3 10.5 97.7 16.2 5.1 5.6 1 8 1945—jan. 31 126.1 18.5 21.9 22.4 22.9 -.2 .3 10.6 96.6 16.7 6.3 4.7 1 8 Feb. 28 . 129.9 18.6 22.9 22.7 23.9 -.2 .3 10.8 99.0 17.0 7.2 4.8 1.9 Mar. 31 130 5 18.6 23.1 22.6 24.5 -.1 .3 10.5 99.4 17.0 7.5 4.7 1 9 Apr. 30 130 4 18 4 23 1 23 0 24 7 .3 10 5 100 0 17 0 7 0 4 4 1 9 May 31. ... 133 6 19.1 22.6 23.1 25.8 j .3 10.3 101.1 19.3 7.5 3.9 1 9 June 30 131.8 21.7 22.8 23.5 26.0 -.1 .3 10.6 104.8 17.9 4.1 3.0 1.9 July 31... 127 1 18.5 22 8 24.2 26.4 .4 10.6 102.7 17.3 2.3 2.7 1 9 Aug. 31 129.1 18.2 23.1 24.4 26.6 1 .4 10.8 103.4 18.2 2.3 3.2 2 0 Sept. 30 134 6 19 1 23 1 24 7 27.8 (2) .4 11.1 106.1 18.6 4.5 3 2 2 2 Oct. 31 134.4 19.1 23.2 25.2 27.3 .4 11.3 106.4 17.6 4.5 3.6 2.2 r Revised. 1 Prior to Jan. 3, 1940, the figures under Asia represent Far East only, the remaining Asiatic countries being included under "All other." 2 Inflow less than $50,000. 3 Outflow less than $50,000. MARCH 1946 345 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTERNATIONAL CAPITAL TRANSACTIONS OF THE UNITED STATES—Continued SHORT-TERM FOREIGN LIABILITIES AND ASSETS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRIES [In millions of dollars] LIABILITIES Date Total U K d n i o i n m t g e - d France N la e e n r t d - h s - S l w a e n r i - t d z- m G a e n r- y Italy E O u t r h o e p r e E T u o r t o a p l e C a a d n a - A L m a e t r i i n ca Asia1 ot A he ll r1 1934—Dec. (Jan. 2, 1935). . . 597.0 76.9 33.9 12.9 13.7 29.9 18.8 46.8 232.9 99.3 122.8 130.1 12.0 1935—Dec. (Jan. 1, 1936). .. 1,200.2 205.5 163.5 68.6 86.1 29.0 26.1 107.5 686.3 145.3 156.3 188.9 23.4 1936—Dec. 30 1,491.6 235.7 176.3 78.8 123.5 32.0 41.7 126.3 814.3 186 1 263 9 200 2 27.1 1937—Dec 29 1,729.6 261.5 143.9 89.1 302.1 39.0 25.7 156.0 1,017.1 175.6 280.9 236.0 20.0 1938—Dec. (Jan. 4, 1939). . . 1,996.6 436.1 187.4 101.8 218.8 17.8 20.4 255.5 1,237.8 201.8 248.5 274.3 34.1 1939—Dec. (Jan. 3, 1940). .. 3,057.0 448.2 288.2 204.9 376.3 9.5 38.5 516.9 1,882.6 274.6 336.0 491.4 72.5 1940—Dec. (Jan. 1, 1941). . . 3,785.2 365.5 490.1 174.3 508.4 6.7 17.9 650.6 2,213.5 434.3 447.3 616.9 73.3 1941—Dec 31 3,482.4 400.8 448.6 174.9 339.9 6.6 15.4 608.0 1,994.0 373.2 417.7 583.9 113.6 1942—Dec 31 3,987 5 554 6 432.3 186.6 184.2 7.5 12.1 643.4 2,020.7 507 4 597 7 712 1 149 6 1943—Dec. 31 5,153.7 1,000.8 439.9 193.3 210.6 6.5 11.3 722.1 2,584.5 812.6 693.7 887.6 175.3 1944— Nov 30 5,432.0 851.0 449.6 206.7 232.3 6.7 24.0 724.0 2,494.4 956.6 899.4 936.8 144.7 Dec. 31 5,269.4 865.7 392.3 209.7 239.3 6.8 25.3 767.7 2,506.9 926.5 909.3 743.8 182.9 Dec. 312 5,271.4 865.7 401.2 209.7 239.3 6.8 27.3 767.7 2,517.8 926 5 909 3 743 8 174.0 1945—Jan. 31 5,382.8 787.8 383.6 206.6 237.8 6.8 31.0 703.6 2,357.1 976.0 963.3 912.4 174.1 Jan 312 5,389.7 787.8 419.0 206.6 237.8 6.8 31.0 703.6 2,392.5 976.0 970.2 912.4 138.6 Feb. 28 5,553.1 838.3 409.8 209.3 245.0 6.8 33.8 709.8 2,452.81,070 3 976 9 911 7 141.4 Mar 31 5,575.7 834.2 366.6 208.8 252.5 6.9 36.0 715.8 2,420.81,129.1 964.0 917.2 144.5 Apr. 30 5,624.0 819.9 338.5 208.8 252.0 7.0 39.4 739.9 2,405.5 1,164.8 993 5 916 2 144.1 May 31 5,670.4 832.1 315.1 209.3 258.0 6.7 42.9 752.7 2,416.9 1,161.31,035.0 915.6 141.6 June 30 5,927.3 861.8 372.3 213.3 261.2 6.7 43.9 803.0 2,562.31,267.31,076 9 878 4 142.4 July 31 6,108.5 872.0 399.0 215.8 268.5 6.8 49.5 839.8 2,651.31,349.81,100.7 865.5 141.2 Aug. 31 6,170.8 824.0 356.7 218.0 273.8 6.9 53.9 805.4 2,538.6 1,449.91,087.4 942 6 152.5 Sept 30 •. . 6,260 6 746 2 313.4 220.6 277.7 6.9 58.5 877.9 2,501 01,492 11,110 6 990 4 166 5 Oct. 31 6,396.8 740.2 360.3 228.1 284.4 7.1 62.0 862.9 2,545.01,551.81,097.71,007.7 194.6 LIABILITIES—SUPPLEMENTARY DATA Other Europe Date E O u t r h o e p r e g B iu e m l- m De a n rk - l F a i n n d - Greece* L b u o x u e rg m 3 - N w o a r y - P g o a r l t " u- m R an u i - a* Spain*SwedenUSSR" s Y la u v g i o a - 8 o A th l e l r 1939—Dec. (Jan. 3, 1940). . 516.9 159.2 28.1 21.4 56 3 142 2 109.8 1940—Dec. (Jan. 1, 1941). . 650.6 144.8 17.3 16.5 48.7 235.4 187.9 1941—Dec 31 608.0 117.3 18.1 5.7 65 2 210 7 191.0 1942—Dec. 31 643 4 121 8 17 7 7 9 39.3 18 3 132.4 35.7 9.4 17.5 153.5 14.3 17.7 57.9 1943—Dec. 31 722.1 122.9 13.9 7.7 43.5 18.4 158.9 53.4 9.3 31.8 163.2 12.3 9.9 76.9 1944—Nov. 30 724 0 124 3 13 4 7 1 48.7 18 5 186.6 49.8 9 4 43.3 148.0 12 9 5 8 56.2 Dec 31 767.7 124.3 14.8 7.1 48.7 18.6 220.8 54.5 9.5 43.4 152.1 16.1 5.7 52.1 1945—jan# 3i 703.6 121.8 14.4 7.0 48.7 18.5 185.4 42.0 9.4 38.2 148.6 12.7 5.7 51.0 Feb. 28. 709.8 123.5 14.2 6.6 48.6 18.6 187.2 41.3 9.1 41.1 152.3 12.9 5.7 48.7 Mar. 31 715.8 133.7 14.4 7.1 50.6 18.6 194.7 35.4 9.3 27.3 157.7 8.6 5.8 52.8 Apr. 30 739.9 139.7 13.7 7.0 52.5 18.5 199.9 39.4 9.3 31.5 158.0 12.8 5.8 51.8 May 31... 752 7 147 3 13.4 6.8 53.7 19.1 194.0 36.6 9.3 37.6 160.2 17.5 5.6 51.7 June 30 803.0 142.1 13.7 6.7 56.6 19.3 240.6 40.6 9.3 31.8 165.4 20.9 5.7 50.3 July 31 839.8 150.5 13.7 6.6 60.5 22.9 236.6 46.4 9.3 36.9 183.7 22.3 5.2 45.2 Aug. 31 . 805 4 149 9 14 4 6.7 63.2 22.9 187.1 39.0 9.7 40.4 194.3 25.7 5.1 46.9 Sept. 30 877 9 218 6 16 8 7 2 66.1 22 9 184.4 45.5 9.2 32.6 199.1 25 4 5 2 45.0 Oct. 31 862.9 195.6 20.1 6.7 68.7 22.9 182.7 45.2 9.2 24.4 213.5 24.4 5.2 44.5 Latin America Neth- French er- West lands Other Date A L i m a c t a e in r- A t r i g n e a n- li B vi o a - * Brazil Chile l b C o i m o a - * - C R o ic s a t * a Cuba I G a n n u d d i i - es M ic e o x- I W a n n d e d i s e t s P m an a a 6 - Peru* z V u e e n la e * - A L i a m c t a i e n rana4 Surinam4 1939—Dec. (Jan. 3, 1940) 336.0 57.7 36.4 26.8 37.0 58.8 34.0 85.3 1940—Dec. (Jan. 1, 1941) 447.3 115.4 36.2 28.5 47.9 55.0 58.7 105.6 1941—Dec. 31 417.7 75.7 50.5 27.3 62.5 37.7 42.1 121.8 1942—Dec. 31 597.7 67.6 10.8 67.7 34.5 43.4 12.4 100.3 4.9 95.7 20.7 36.9 17.7 20.9 64.2 1943—Dec. 31 693.7 69.8 12.6 98.7 54.0 67.1 12.2 70.4 2.6 70.4 41.2 57.6 17.4 24.2 95.4 1944—Nov. 30 899.4 84.6 18.7 142.7 57.4 85.2 7.1 131.1 3.1 90.7 35.8 67.7 25.8 29.4 120.0 Dec. 31 909.3 93.9 17.7 140.8 55.0 83.6 7.4 139.3 4.4 83.1 36.0 69.1 27.7 31.5 119.8 1945—Jan. 31 963.3 89.3 19.9 160.2 54.4 85.0 7.0 139.1 4.6 99.3 35.3 69.4 29.2 49.0 121.5 Jan. 312 970.2 89.3 19.9 160.2 54.4 85.0 7.0 139.1 4.6 99.3 35.3 76.3 29.2 49.0 121.5 Feb. 28 976.9 89.9 18.9 156.9 53.2 82.8 6.9 136.6 5.1 114.2 35.5 78.7 29.7 43.9 124.6 Mar. 31 964.0 73.4 17.1 128.2 52.1 81.5 7.4 141.2 5.4 129.0 34.3 82.5 32.7 49.4 129.9 Apr. 30 993.5 73.1 18.5 133.3 51.3 77.2 8.1 160.2 5.2 140.1 33.7 81.8 33.9 43.2 133.8 May 31 1,035.0 70.0 17.7 138.8 54.9 76.6 8.2 169.6 6.3 158.4 32.5 83.1 33.9 48.2 136.6 June 30 1,076.9 73.2 19.2 146.2 66.8 76.2 7.5 190.4 6.3 163.8 29.2 86.2 35.5 41.5 134.8 July 31 1,100.7 82.5 17.2 164.4 64.6 82.3 8.0 153.9 8.6 177.2 31.5 89.6 35.8 50.2 134.9 Aug. 31 1,087.4 75.1 18.0 163.0 64.5 90.2 7.0 156.9 7.3 158.7 31.7 87.8 38.8 43.0 145.3 Sept. 30 1,110.6 78.0 17.9 181.5 63.2 93.2 6.2 154.5 7.8 164.4 32.9 89.1 38.8 44.3 138.6 Oct. 31 1,097.7 77.2 17.9 179.2 63.6 83.1 6.6 145.4 7.3 164.3 33.6 90.5 42.6 48.5 138.1 For footnotes see p. 347. 346 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTERNATIONAL CAPITAL TRANSACTIONS OF THE UNITED STATES—Continued SHORT-TERM FOREIGN LIABILITIES AND ASSETS REPORTED BY BANKS IN THE UNITED STATES. BY COUNTRIES—Continued [In millions of dollars] LIABILITIES—SUPPLEMENTARY DATA—Continued Asia and All Other Date Asia China F C I r n h e d i n n o c a - h 1 H K o o n n g g I C B n a l m o d n e u n a i y d r a , 1 - - , M l B t a is r y a i h - a - 1 c M J ( h r a K i a e u n n a p o a r c d n a - i ) l a - n . I N l n E a e d e n a r i t d s - e h t s s - 1 i l p P a I p h n s i i - d n l- s e T k u ey r- 1 O A t s h i e a r ot A he ll r2 A t l u r ia a s- - N Z la e e n a w d - E A S E t a g n u i g n y a g d y d n p l a p o t n - -F r r M o e c n o c - c o hU A S f n o r o i u i o f c t n a h Other 1939—Dec. (Jan. 3, 1940). . 491.4 167.0 71.4 165.4 29.1 58.5 72.5 1940—Dec. (Jan. 1, 1941). . 616.9 207.5 91.1 110.3 45.6 162.4 73.3 1941—Dec. 31 '583.9 156.8 61.6 69.9 30.7 264.9 113.6 1942—Dec. 31 712.1 360.9 ' 27.'4 41.6 13.'i "i.'o 4.8 160 A 36.8 29.9 36.2 149.6 23.1 '4.8 ' "6.'8 " 12." i' 11.0 '9i.'8 1943—Dec. 31 887.6 574.2 27.4 23.9 18.2 .9 4.1 110.1 37.935.4 55.5 175.3 25.3 5.1 6.1 10.3 4.5 124.1 1944—Nov. 30 936.8 607.2 27.4 22.9 39.3 1.2 4.0 113.6 39.2 20.3 61.7 144.7 40.0 3.6 7.2 4.4 5.2 84.2 Dec. 31 743.8 427.3 27.4 22.9 22.1 1.3 4.0 110.5 40.4 23.', 64.2 182.9 52.9 3.5 7.3 4.3 8.3 106.5 Dec. 313 743.8 427.3 27.4 22.9 22.1 1.3 4.0 110.5 40.423.7 64.2 174.0 52.9 3.5 7.3 4.3 8.3 97.6 1945—Jan. 31 912.4 573.9 27.4 22.6 20.8 1.3 4.0 111.1 40.2 37.1 74.C174.1 34.2 5.6 8.4 4.2 8.9 112.8 Jan. 313. 912.4 573.9 27.4 22.6 20.8 1.3 4.0 111.1 40.237.1 74.0 138.6 34.2 5.6 8.4 4.2 8.9 77.4 Feb. 28 911.7 556.9 27.4 22.8 21.1 .9 3.9 113.5 42.846.0 76.4 141.4 34.9 4.8 8.8 4.1 8.0 80.8 Mar. 31 917.2 554.4 27.4 21.9 21.3 .9 4.0 116 5 40.450 4 80.1 144.5 34 6 4 1 9.0 3 9 7 4 85 5 Apr. 30 916.2 546.9 27.5 21.6 23.5 .9 4.0 115.4 43.8 51.6 80.9 144.1 34.5 3.6 9.8 4.1 7.1 85.0 May 31 915.6 •541.7 27.5 21.9 26.6 .8 4.0 117 6 45.250.7 79 4141.6 32 0 3.5 9 5 4 3 6 0 86 2 June 30 878.4 519.6 27.5 22.0 23.2 1.0 4.1 111.3 49.6 51.5 68.6 142.4 30.7 3.3 11.0 3.6 6.4 87.4 July 31 865.5 501.1 27.5 21.9 24.1 .9 4.3 112.6 52.5 50.8 69.6 141.2 27.8 3.3 10.8 4.0 4.7 90.5 Aug. 31 942.6 578.7 27.6 21.7 25.3 .9 3.9 108.8 50.451.2 74.2 152.5 27.6 4.6 13.6 4.7 5.8 96.2 Sept. 30 990.4 588.5 27.6 21.9 28.9 .9 4.2 99.3 92.0 50.5 76.7 166.5 28.5 3.1 13.6 5.8 8.4 107.1 Oct. 31 1,007.7 591.7 27.5 21.7 33.2 1.0 4.2 104.4 89.750.5 83.7 194.6 29.0 3.7 17.3 7.7 6.4 130.4 c Corrected. 1 Prior to June 30, 1942, included under "Other Asia." 2 Country breakdown not available until June 30, 1942. s See footnote 2 for main table. Footnotes to table on p. 346. 1 Prior to Jan. 3, 1940, the figures under Asia represent Far East only, the remaining Asiatic countries being included under "All other." 2 Certain of the figures are not strictly comparable with the corresponding figures for preceding months owing to changes in reporting practice of various banks. The cumulative figures in Tables 1, 2, and 3 of "Net Capital Movement to the United States" have been adjusted to exclude the unreal movements introduced by these changes. Figures shown above are adjusted to compare with those of previous months. 3 Prior to June 30. 1942, included under "AH other." 4 Prior to June 30, 1942, included under "Other Latin America." 6 Included "Canal Zone" prior to June 30, 1942. • NOTE.—For previous changes or corrections in the reporting practices of reporting banks (similar to those indicated in footnote 2 above), which occurred on Aug. 12, 1936, Jan. 5, 1938, Oct. 18, 1939, and May 7, 1941, see Banking and Monetary Statistics, pages 578-584. For changes subsequent to 1941, which occurred on Apr. 1 and June 30, 1942, Sept. 30 and Oct. 31, 1943, and Mar. 31, 1944, see BULLETIN for September 1945, pp. 967-970. ASSETS Date Total U K d n i o i n t m g ed - France N la e e n t r d h s - S l w a e n r i - t d z- m G a e n r y - Italy E O u t r h o e p r e E T u o ro ta p l e C a a d n a - A L m i a c t a e in r- Asia1 ot A he ll r1 1934—Dec. (Jan. 2, 1935) 1,139.9 296.9 80.5 18.6 8.2 231.7 27.2 80.0 743.2 96.3 174.6 117.4 8.5 1935—Dec. (Jan. 1, 1936) .... 778.6 88.1 32.5 19.0 6.6 202.0 13.5 71.2 433.0 100.9 154.5 80.1 10.1 1936—Dec. 30 672.6 114.1 16.8 21.9 5.4 165.1 10.9 57.8 392.1 59.4 141.1 67.2 12.9 I937—Dec 29 655 0 84 8 13 5 23.0 5.5 126.1 20.8 52.9 326.5 118.0 114.4 78.9 17.2 1938—Dec. (Jan. 4, 1939) .... 594.0 86.0 10.3 24.2 5.5 89.4 13.5 45.9 274.9 60.4 99.1 144.1 15.5 1939—Dec. (Jan. 3, 1940) 508.7 39.9 4.9 5.7 5.2 53.4 11.8 51.4 172.2 39.7 113.3 174.1 9.3 1940—Dec. (Jan. 1, 1941) .... 384.0 23.0 4.2 .9 1.5 39.6 2.0 29.9 101.0 36.0 122.7 117.8 6.4 1941—Dec. 31 367 8 20.9 1.8 1.1 2.6 34.4 1.5 26.2 88.4 33.6 148.3 87.9 9.7 1942—Dec. 31 246.7 12.6 1.3 .5 1.5 34.0 .4 22.3 72.6 34.3 99.7 35.3 4.8 1943—T3ec. 31 . 257.9 19.9 1.1 .4 3.0 33.9 .4 19.0 77.6 37.8 112.2 26.3 3.9 1944—Nov. 30 262.8 24.6 1.4 .3 3.3 33.9 .3 8.2 71.9 28.0 116.8 33.0 13.0 Dec. 31 329 7 25 9 1.4 .3 1.3 33.9 .3 44.4 107.5 28.1 131.0 51.4 11.7 I945—jan< 31 287.3 25.8 1.5 .3 1.9 33.9 .4 8.4 72.1 31.1 131.9 41.5 10.6 Feb. 28 275.6 27.4 1.5 .3 .8 33.9 .3 8.7 72.9 24.8 127.3 40.9 9.7 Mar 31 286 9 23 2 1 5 .3 .9 33.9 .3 8.7 68.8 23.9 144.1 41.0 9.2 Apr. 30 . . .. 290.8 25.4 1.4 .5 .9 33.9 .3 8.4 70.8 23.0 145.0 42.6 9.3 May 31 289.8 30.5 1.3 .4 .8 33.9 .3 8.9 76.2 25.6 127.9 51.1 9.0 June 30 375 0 27 9 1.3 .7 5.4 33.9 .3 48.2 117.6 53.8 144.5 49.2 9.9 July 31 325. 2 24.8 1.2 .3 3.6 33.9 .3 48.7 113.0 45.2 109.8 47.7 9.5 Aug. 31 r306.5 31.6 1.2 .4 2.0 33.9 .3 9.7 79.1 41.5 "•116.6 60.7 8.5 Sept. 30 r27O 2 24 9 1.2 .6 2.7 33.9 .3 8.1 71.7 39.6 »-120.6 30.8 7.6 Oct. 31 260.0 21.5 1.0 .6 3.0 33.9 .1 9.6 69.8 32.2 113.6 37.3 7.2 r Revised. 1 Prior to Jan. 3, 1940, the figures under Asia represent Far East only, the remaining Asiatic countries being included under "All other." NOTE.—The figures in this table are not fully comparable throughout since certain changes or corrections took place in the reporting practice of reporting banks on Aug. 12, 1936, and Oct. 18, 1939. (See Banking and Monetary Statistics, Table 161, pp. 589 and 591.) On June 30, 1942, reporting practice was changed from a weekly to a monthly basis. For further information see BULLETIN for September 1945, pp. 971-974. 347 MARCH 1946 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTERNATIONAL CAPITAL TRANSACTIONS OF THE UNITED STATES—Continued SHORT-TERM FOREIGN LIABILITIES AND ASSETS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRIES—Continued [In millions of dollars] ASSETS—SUPPLEMENTARY DATA Other Europe Date E O u t r h o e p r e Bel- m D a e r n k - l F a i n n d - Greece1 L b u o x u e r m g1 - N w o a r y - tu P g o a r- l1 m R an u i - a1 Spain S d w en e- USSR1 s Y la u v g i o a - 1 o A th l e l r 1939—Dec. (Jan. 3, 1940) 51.4 6.5 3.2 1.4 3.6 8.7 28.0 1 1 9 9 4 4 0 1 — — D D e e c c . . ( 3 J 1 an. 1, 1941) 2 2 6 9 . . 2 9 1 1 . . 1 5 8 s 1 1. . 9 8 1. . 0 6 2 2 4 2 . . 5 1 1942—Dec. 31 22.3 5.6 1.1 2.4 3.2 .4 8.4 1943—Dec. 31 19.0 7.6 .6 1.4 3.2 .2 5.0 () 1944—Nov. 30. 8.2 () .6 .6 .8 .3 5.0 Dec. 31. 44.4 00 .6 35. .8 1.8 .2 5.1 1945—Jan. 31. 8.4 (2) () .6 .7 .9 .2 5.0 Feb. 28. 8.7 .6 .6 1.2 .2 5.1 Mar. 31. 8.7 .6 .5 1.3 .2 5.0 Apr. 30. 8.4 8 .6 .6 .9 .2 5.1 May 31. 8.9 .8 .6 .6 1.5 .3 4.9 June 30. 48.2 8 .6 .5 .9 .3 4.8 July 31. 48.7 .6 .2 .9 .7 4.9 S A e u p g t . . 3 3 1 0 . . 9 8 . . 7 1 () () . . 6 6 . . 3 3 1. . 4 9 1. . 5 3 5 4 . . 1 9 Oct. 31. 9.6 1.5 .6 .1 .2 1.0 .5 5.0 Latin America French Nether- Date A L i a m c t a i e n r-Argen- li B v o ia - 3 Brazil Chile l b C o i m o a - * - C R o ic s a ta 3 Cuba I W G a n a n d n u e a i d i s e 3 - t s Mexico I l W n S n a a a u d n n e m r i d d s i e - s 3 t s P m an a a 4 - Peru* z V u e e n la e 3 - O A L i a m t c h t a i e e n r r - 1939—Dec. (Jan. 3, 1940). 113.3 16.8 32.2 9.7 10.5 5.9 1.0 37.2 1940—Dec. (Jan. 1, 1941). 122.7 11.9 33.1 13.4 11.7 6.1 2.1 44.4 1941—Dec. 31 148.3 16.8 38.0 14.9 .3 7.6 2.4 57.3 1942—Dec. 31 99.7 6.9 3.0 16.7 15.3 20.7 8.3 4.8 2.1 2.8 3.9 14.2 1943—Dec. 31 112.2 15.3 1.8 18.9 16.6 12.2 20.1 11.2 1.1 1.4 3.8 8.7 1944—Nov. 30. 116.8 3.9 1.4 24.4 8.7 14.8 33.9 8.0 .5 5.6 12.1 Dec. 31. 131.0 3.1 1.8 25.3 9.0 15.5 47.4 8.6 .2 5.1 11.7 1945—Jan. 31. 131.9 2.8 1.7 24.8 8.5 15.5 49.2 9.3 .7 4.1 11.8 Feb. 28. 127.3 2.9 1.2 23.8 8.5 13.5 50.1 8.4 .4 3.7 11.4 Mar. 31. 144.1 5.5 1.3 22.7 7.8 16.0 60.9 9.1 .4 4.0 13.1 Apr. 30. 145.0 8.7 1.4 24.1 8.7 14.7 57.1 8.8 .4 4.9 13.0 May 31. 127.9 7.7 1.3 25.5 8.4 15.1 39.1 8.7 .4 5.8 12.6 June 30. 144.5 8.3 1.2 30.6 7.0 16.8 49.7 8.9 .4 5.6 12.3 July 31. 109.8 14.1 1.2 26.9 8.4 16.3 10.3 10.2 .7 5.5 12.4 Aug. 31. 116.6 11.0 1.3 24.4 6.3 17.1 14.5 8.7 .9 5.2 23.7 Sept. 30. 120.6 12.8 1.1 21.7 7.5 16.7 18.3 9.0 .3 5.2 24.1 Oct. 31.. 113.6 10.8 1.8 18.2 6.8 14.2 17.0 9.7 .3 5.7 25.4 Asia and All Other' Date Asia China F C I r n h e d i n n o c a - h 5 H K o o n n g g I C B n l a m s d n e u a y i d r a , - - , M l B t a i r s y a i h - a - 5 c M J ( h r a K i a e u n n a p o a r c d n a - i ) l a - n . I N l n E a e d e n a r i t d s - e h t s s - 5 i l P p a I h p n s i i - d n l- s e T ke u y r 5 O A t s h i e a r ot A he ll r6 A t l u r ia a s- - N l Z a e e n a w d - E A S E t g a n u i g n y a g d y d n p l a p o t n - -F r r M o e c n o c - c o h A U S f n o r o i i u o c f t a n h Other 1939—Dec. (Jan. 3, 1940) 174.1 22.0 1.9 102.1 26.4 21.6 9.3 1940—Dec. (Jan. 1, 1941)117.8 23.7 1.7 55 22.6 14.0 6 1941—Dec. 31 87.9 23.5 3.1 18.9 23.0 19.5 9.7 1942—Dec. 31 35.3 11.1 .9 2.2 .5 1.6 14.4 1.8 2.0 4.8 1.0 1.7 1.2 1943—Dec. 31 26.3 1.7 1.0 2.0 .5 1.7 13.9 3.2 1.8 3.9 .5 2.4 .7 1944—Nov. 30 33.0 1.6 .9 4.2 .5 1.5 13.8 1.4 8.9 13.0 11.0 1.0 Dec. 31 51.4 1.5 .9 22.3 .5 1.5 13.8 1.8 8.8 11.7 9.7 1.0 1945—Jan. 31 41.5 1.7 .9 12.4 .5 1.4 13.9 2.0 8.6 10.6 8.3 L.I Feb. 28 40.9 1.2 .9 12.1 .5 1.4 13.9 1.8 9.0 9.7 7.2 L2 Mar. 31 41.0 1.3 .9 11.8 .5 1.4 13.9 1.8 9.1 9.2 6.7 L.I Apr. 30 42.6 1.3 .9 12.1 .5 1.4 13.9 1.9 10.5 9.3 6.7 L.2 May 31 51.1 1.1 .9 19.4 .5 1.4 13.9 2.0 11.8 9.0 1.0 6.1 L.2 June 30 49.2 1.2 16.8 .5 1.4 13.6 2.0 12.5 9.9 .9 6.0 >.4 July 31 47.7 1.0 14.5 .5 1.4 13.9 2.2 13.1 9.5 2.1 5.2 L.6 Aug. 31 60.7 1.1 15.0 .5 1.4 26.0 2.1 13.6 8.5 1.0 5.0 L.8 Sept. 30 30.8 1.1 8.0 .5 1.4 13.6 2.3 2.9 7.6 .7 4.5 L.6 Oct. 31 37.3 1.2 7.2 .5 1.4 13.0 1.6 11.4 7.2 .7 4.1 L.5 r Revised. 1 Prior to June 30, 1942, included under "All other." 2 Less than $50,000. 3 Prior to June 30, 1942, included under "Other Latin America." * Included "Canal Zone" prior to June 30, 1942. 5 Prior to June 30, 1942, included under "Other Asia." 6 Country breakdown not available until June 30, 1942. 348 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CENTRAL BANKS A d s e se p t a s r t o m f e is n s t ue Assets of banking department Liabilities of banking department Bank of England Note (Fig p u o r u e n s d i s n s t m er i l ll i i n o g n ) s of Goldi a O ss th et e s r 2 C C o a i s n h rese N rv o e te s s a v c n o a D d n u i s c n 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 ep u o b s li it c s 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 . * .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 5 630.0 .9 13.3 4.0 199.1 616.9 135.7- 12.5 51.2 17.9 1941—Dec. 31. .2 s 780.0 .3 28.5 6.4 267.8 751.7 219.9 11.2 54.1 17.9 1942—Dec. 30. .2 5 950.0 .9 26.8 3.5 267.9 923.4 223.4 9.0 48.8 17.9 1943—Dec. 29. .2 5 1,100.0 .9 11.6 2.5 307.9 1,088.7 234.3 10.3 60.4 17.9 1944—Dec. 27. .2 5 1,250.0 1.9 11.6 5.1 317.4 1,238.6 260.7 5.2 52.3 17.8 1945—Feb. 28. .2 1,250.0 1.7 33.1 8.5 261.1 1,217.1 207.8 18.1 60.5 18.0 Mar. 28. .2 1,250.0 1.5 14.5 18.6 268.4 1,235.8 218.9 8.9 57.0 18.1 Apr. 25. .2 1,250.0 1.3 15.0 20.1 269.9 1,235.2 229.6 8.5 50.5 17.7 May 30. .2 s 1,300.0 1.2 30.6 9.6 254.3 1,269.6 212.4 14.8 50.7 17.8 June 27. .2 1,300.0 1.3 15.1 3.8 324.2 1,285.2 262.3 12.7 51.6 17.9 July 25. .2 5 1,350.0 .9 44.5 1.8 263.6 1,305.7 229.1 10.3 53.6 17.9 Aug. 29. .2 1,350.0 .4 24.3 7.2 295.3 1,325.9 238.2 16.0 55.0 18.0 Sept. 26. .2 1,350.0 .2 20.3 3.6 331.7 1,329.9 279.1 5.5 53.1 18.1 Oct. 31. .2 1,350.0 .4 28.1 11.2 288.9 1,322.2 244.2 9.2 57.4 17.7 Nov. 28. .2 1,350.0 .5 22.6 11.3 301.6 1,327.6 250.2 10.5 57.7 17.8 Dec. 26. .2 M,400.0 .4 20.3 8.4 327.0 1,379.9 274.5 5.3 58.5 17.8 1946—Jan. 30. .2 1,400.0 .5 68.8 5.5 289.6 1,331.4 279.7 11.0 55.9 17.9 Assets Liabilities Bank of Canada Dom cia in l io go n v a e n rn d m p e ro n v t in- Deposits (F C ig a u n r a e d s i i a n n m do il l l l i a o r n s s ) of Gold an S d S t e t U a rl t i n e n i s t g ed securities O as t s h e e ts r circ N ul o a t t e ion1 lia O bi t l h it e i r es8 dollars S te h r o m rt 6 - Other Ch b a a r n te k r s ed D g o o m m v e e i n n rn t io - n Other 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 1939—Dec. 30. . 225.7 64.3 181.9 49.9 5.5 232.8 217.0 46.3 17.9 13.3 1940—Dec. 31.. 38.4 448.4 127.3 12.4 359.9 217.7 10.9 9.5 28.5 1941—Dec. 31.. 200.9 391.8 216.7 33.5 496.0 232.0 73.8 6.0 35.1 1942—Dec. 31. . .5 807.2 209.2 31.3 693.6 259.9 51.6 19.1 24.0 1943—Dec. 31.. .6 787.6 472.8 47.3 874.4 340.2 20.5 17.8 55.4 1944—Dec. 30.. 172.3 906.9 573.9 34.3 1,036.0 401.7 12.9 27.7 209.1 1945—Feb. 28.. 170.4 891.6 595.5 29.0 1,028.6 397.6 27.9 37.2 195.1 Mar. .31.. 177.1 926.5 608.7 33.2 1,048.7 422.0 18.7 52.7 203.4 Apr. 30.. 196.6 937.7 621.7 49.7 1,062.3 448.9 39.5 50.8 204.2 May 31.. 177.9 1,068.3 533.5 42.0 1,055.8 464.8 33.6 32.4 235.1 June 30. 174.4 1,073.8 559.5 34.4 1,063.2 492.0 43.9 35.9 207.1 July 31. 174.4 1,034.7 558.3 56.5 1,078.8 441.1 57.5 37.6 208.8 Aug. 31. 176.1 1,031.5 584.0 62.3 1,097.9 444.4 32.6 39.7 239.2 Sept. 29.. 176.1 1,028.9 591.4 34.9 1,112.4 442.9 39.6 22.4 213.9 Oct. 31. 176.1 1,109.4 590.6 39.5 1,136.6 474.2 51.0 32.4 221.3 Nov. 30.. 159.0 1,168.1 629.4 69.5 1,113.8 495.2 159.1 27.4 230.5 Dec. 31.. 156.8 1,157.3 688.3 29.5 1,129.1 521.2 153.3 29.8 198.5 1946—Jan. 31.. 101.8 1,143.8 686.2 33.2 1,088.1 505.9 187.2 34.2 149.6 1 Through February 1939, valued at legal parity of 85 shillings a fine ounce; thereafter at market price, which fluctuated until Sept. 6, 1939, when it was officially set at 168 shillings per fine ounce; the latter rate remained in effect until June 9, 1945, when it was raised to 172 shillings and three pence. 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. < 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. s Fiduciary issue increased by 50 million pounds on June 12, 1940, Apr. 30, Aug. 30, and Dec. 3, 1941, and Apr. 22 and July 28, 1942; by 70 million pounds on Dec. 2, 1942; and by 50 million pounds on Apr. 13, Oct. 6, and Dec. 8, 1943, Mar. 7, Aug. 2, and Dec. 6, 1944, and on May 8, July 3, and Dec. 10, 1945. 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 Beginning November 1944, includes a certain amount of sterling and United States dollars. 9 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 back figures on Bank of England and Bank of Canada, see Banking and Monetary Statistics, Tables 164 and 166, pp. 638-640 .and pp. 644-645, respectively; for description of statistics see pp. 560-564 in same publication. MARCH 1946 349 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CENTRAL BANKS—Continued Assets Liabilities Bank of France Domestic bills G A o dv v a e n rn c m es e t n o t Deposits mill ( i F on ig s u o r f e s f r i a n ncs) Gold* F c o h e r a x e n - i g g e n m O a p rk e e n t2 Special2 Other c F u c o p o r a s o t t s i c o 3 - n Other2 O as t s h e e ts r ci N r ti c o o u t n l e a- G m ov e e n r t n- C.A.R.4 Other l O ia t t i b h e i s e li r - 1929—Dec. 27. 41,668 25,942 5,612 8,624 8,124 68,571 ,737 7,850 1,812 1930—Dec. 26. 53,578 26,179 5,304 8,429 9,510 76,436 ,624 11,698 2,241 1931—Dec. 30. 68,863 21,111 7,157 7,389 11,275 85,725 898 22,183 1,989 1932—Dec. 30. 83,017 4,484 6,802 3,438 11,712 85,028 ,311 20,072 2,041 1933—Dec. 29. 77,098 1,158 6,122 4,739 11,173 82,613 322 13,414 1,940 1934—Dec. 28. 82,124 963 5,837 3,971 11,500 83,412 ,718 15,359 1,907 1935—Dec. 27. 66,296 1,328 5,800 9,712 11,705 81,150 ,862 8,716 2,113 1936—Dec. 30. 60,359 1,460 5,640 1,379 8,465 17,698 12,642 89,342 ,089 13,655 2,557 1937—Dec. 30. 58,933 911 5,580 652 10,066 31,909 11,733 93,837 ,461 19,326 3,160 1938—Dec. 29. 87,265 821 7,422 1,797 7,880 20,627 18,498 110,935 061 25,595 2,718 1939—Dec. 28. 597,267 112 11,273 2,345 5,149 34,673 20,094 151,322 ,914 14,751 925 1940—Dec. 26. 584,616 42 43,194 661 3,646 72,317 63,900 23,179 218,383 984 41,400 27,202 3,586 1941—Dec. 31. 84,598 38 42,115 12 4,517 142,507 69,500 22,121 270,144 ,517 64,580 25,272 3,894 1942—Dec. 31. 84,598 37 43,661 169 5,368 210,965 68,250 21,749 382,774 770 16,857 29,935 4,461 1943—Dec. 30. 84,598 37 44,699 29 7,543 326,973 64,400 21,420 500,386 578 10,724 33,137 4,872 1944—Dec. 28 75,151 42 47,288 48 18,592 426,000 15,850 635,221 572,510 748 37,855 7,078 1945—Jan. 25. 75,151 42 47,842 16 26,360 426,000 645,435 562,416 3,196 50,382 4,852 Feb. 22. 75,151 42 47,894 9 23,473 426,000 7,700 637,903 568,900 778 43,697 4,797 Mar. 29., 75,151 44 48,483 2 16,601 426,000 17,550 642,093 580.123 775 39,951 5,075 Apr. 26. 75,151 44 48,257 14,967 426,000 20,900 643,634 580,944 756 42,302 4,950 May 31. 75,151 45 48,141 10,162 426,000 19,750 635,403 548,945 774 57,231 7,701 Aug. 30. 75,151 46 48,703 12,936 426,000 641,666 469,652 80,246 50,005 4,600 Sept. 27. 75,151 46 49,363 14,242 426,000 H2.717 496,258 53,598 53,156 4,506 Oct. 31. 565,152 47 60,087 27 20,442 426,000 646,152 528,945 30,793 52,552 5,617 Nov. 29. 65,152 45 62,210 153 26,073 426,000 «45,859 545,795 21,708 53,447 4,540 Dec. 27. 5129,817 68 '23,038 303 25,548 426,000 639,122 570,006 12,048 57,755 4,087 Assets Liabilities Reichsbank Reserves of gold and Bills (and Securities (Figu re re ic s h i s n m m ar il k l s io ) ns of re T f s o o e r r t e v a i l g es n exch G an o g ld e i T c n r h c e b e l a u i c l s d k l u s i s n r ) y , g Se lo c a u n ri s ty E a c s li o g v n i e b o r l t e e Other a O s t s h e e ts r ci N r ti c o o u t n l e a- Deposits l O ia t t i b h e i s e li r - 1929—Dec. 31. 2,687 2,283 2,848 251 92 656 5,044 755 736 1930—Dec. 31. 2,685 2,216 2,572 256 102 638 4,778 652 822 1931—Dec. 31. 1,156 984 4,242 245 161 1,065 4,776 755 1,338 1932—Dec. 31. 920 806 2,806 176 398 1,114 3,560 540 1,313 1933—Dec. 30. 396 386 3,226 183 259 322 735 3,645 640 836 1934—Dec. 31. 84 79 4,066 146 445 319 827 3,901 984 1,001 1935—Dec. 31. 88 82 4,552 84 349 315 853 4,285 1,032 923 1936—Dec. 31. 72 66 5,510 74 221 303 765 4,980 1,012 953 1937—Dec. 31. 76 71 6,131 60 106 286 861 5,493 1,059 970 1938—Dec. 31. 76 71 8,244 45 557 298 1,621 8,223 1,527 ,091 1939—Dec. 30. 78 71 11,392 30 804 393 2,498 11,798 2,018 ,378 1940—Dec. 31. 78 71 15,419 38 32 357 2,066 14,033 2,561 ,396 1941—Dec. 31. 77 71 21 656 32 107 283 2,311 19,325 3,649 ,493 1942—Dec. 31. 76 71 29,283 25 87 210 1,664 24,375 5,292 ,680 1943—Dec. 31. 77 71 41,342 27 1 65 2,337 33,683 8,186 ,980 1944_Mar. 31. 77 40,379 46 1 33 2,281 33,792 7,237 ,788 Apr. 29. 77 40,909 38 1 31 2,525 34,569 7,179 ,833 May 31. 77 42,159 28 1 23 2,096 35,229 7,240 ,915 June 30. 77 42,150 26 1 27 2,397 35,920 6,754 2,004 July 31 77 43,222 38 1 21 2,396 36,888 6,813 2,054 Aug. 31. 77 45,829 42 1 20 2,275 38,579 7,480 2,185 Sept. 30 77 50,821 47 67 25 2,510 42,301 9,088 2,160 Oct. 31 77 53,954 46 70 24 2,351 44,704 9,603 2.216 Nov. 30. 77 56,939 62 69 21 2,795 46,870 10,829 2,264 Dec. 30. 77 71 63,497 112 1 45 2,351 50,102 13,535 2,445 1945—Jan. 31. 77 64,625 199 81 60 2,083 51,207 13,566 2,353 Feb. 28. 77 70,699 307 112 61 2,591 55,519 16,419 1,909 1 Gold revalued on Dec. 26, 1945, on basis of 134,027.90 francs per fine kilogram. For details on previous devaluations see BULLETIN for May 1940, pp. 4®6-407; 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 July 20, 1944, advances of 441,000 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, in week ending Oct. 11, 1945, 10,000 million, and in week ending Dec. 27, 1945, 53,000 million francs of gold transferred from Bank of France to Stabilization Fund. 6 Includes 9,447 million francs charged to the State to reimourse the Bank for the gold turned over by it to the National Bank of Belgium on Dec. 22, 1944. 7 Forty billion francs of gold increment resulting from revaluation used to cancel an equal amount of Treasury bonds. 8 Gold not shown separately in weekly Reichsbank statement after June 15, 1939. NOTE.—For back figures on Bank of France and Reichsbank, see Banking and Monetary Statistics, Tables 165 and 167, pp. 641-643 and pp. 645-647, respectively; for description of statistics see pp. 562-565 in same publication. 350 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CENTRAL BANKS—Continued Central Bank 1945 Central Bank 1946 1945 (Figures as of last report (Figures as of last report date of month) date of month) Jan. Dec. Nov. Jan. Jan. Dec. Nov. Jan. Central Bank of the Argentine National Bank of Czechoslovakia Republic (millions of pesos): in Prague—Continued Gold reported separately 1,227 1,242 Note circulation—Old 2,192 C2,841 35,647 Other gold and foreign exchange 3,300 2,483 New 24,233 C17,847 Government securities 871 873 Deposits 93,411 99,501 17,079 Rediscounted paper Other liabilities 10,627 12,880 13,600 Other assets 166 150National Bank of Denmark Note circulation 2,722 2,317 (millions of kroner): Deposits—Member bank 1,719 1,410 Gold 83 97 97 Government 516 525 Foreign exchange 88 110 22 Other 199 191 Clearing accounts (net) 121 2,946 2,847 Certificates of participation in Loans and discounts 75 41 32 Ot G he o r v l e i r a n b m ili e t n ie t s securities 2 1 2 8 9 0 1 1 2 7 6 9 S G e o c v u t r . i t c ie o s mpensation account8. . . 7,61 8 1 8 6 7 5 3 1 8 0 5 1 Commonwealth Bank of Aus- Other assets 147 4,979 4,491 tralia1 (thousands of pounds): Note circulation 1,561 1,421 1,610 Gold and foreign exchange 177,460176,712177,783 Deposits—Government 2,737 2,829 2,543 Checks and bills of other banks. . 1,610 1,063 1,863 Other 3,634 3,618 3,037 Securities (inch Government and Other liabilities 280 443 485 Treasury bills) 419,092426,160 410,568 Central Bank of Ecuador Other assets 15,813 13, 13,731 (thousands of sucres): (Oct.) Note circulation 193,714199 190,464 Gold 288,843288,639 Deposits of Trading Banks: Foreign exchange (net) 118,365160,439 Special 236,780233, 230,689 Loans and discounts 131,895117,607 Other 32,865 32, 27,074 Other assets 90,598 85,695 Other liabilities 150,617150 155,719 Note circulation 337,865 304,625 National Bank of Belgium Demand deposits 263,650 300,570 (millions of francs): Other liabilities 28,187 47,184 Gold* 383 31,166 32,094National Bank of Egypt9 (thou- Foreign exchange 688 4,820 915 sands of pounds) : Loans to Government 270 44,686 30,416 Gold 6,241 6,241 Other loans and discounts 769 1,095 2,442 Foreign exchange 18,063 15,659 Claim against Bank of Issue... . 597 64,597 64,589 Loans and discounts 6,083 6,144 Other assets 342 1,283 2,183 British, Egyptian, and other Note circulation 376 66,761 44,329 Government securities 299,913265,124 Demand deposits 444 3,237 3,535 Other assets 27,596 22,738 Blocked Treasury account2 493 314,493 10,493 Note circulation 142,232117,078 Notes and blocked accounts4.... 589 62,029 73,279 Deposits—Government 64,722 69,868 Other liabilities 147 1,127 1,003 Other 135,914115,540 Central Bank of Bolivia (millions Other liabilities 15,028 13,421 of bolivianos): (Oct.)' Central Reserve Bank of El Salva- Gold at home and abroad , 768 600 dor (thousands of colones): Foreign exchange 550 414 Gold 33,008 33,027 33,222 Loans and discounts 372 289 Foreign exchange 37,382 36,252 31,306 Securities—Government 630 626 Loans and discounts 2,113 1,789 1,086 Other 42 41 Government debt and securities. 6,337 6,452 6,007 Other a,ssets 234 78 Other assets 1,725 1,892 1,327 Note circulation 1,459 ,256 Note circulation 46,022 44,607 46,737 Deposits 1,008 701 Deposits 27,655 27,796 19,556 Nati O on th a e l r B li a a n bi k l it o ie f s Bulgaria6 129 91 Bank O t o h f e r F l i i n a l b a il n it d i 6 es 6,887 7,008 6,654 Central Bank of Chile (millions Bank of Greece6 of pesos): National Bank of Hungary6 Gold 340 287 277 Reserve Bank of India (millions of Discounts for member banks... 447 384 321 rupees): Loans to Government 701 706 710 Issue department: Other loans and discounts 605 597 979 Gold at home and abroad. . 444 444 444 Other assets ,738 1,664 1,205 Sterling securities 11,053 10,693 9,293 Note circulation ,892 2,612 2,516 Indian Govt. securities 578 578 578 Deposits—Bank 416 489 456 Rupee coin 146 170 126 Other 198 184 208 Note circulation 12,109 11,764 10,340 Other liabilities 325 352 313 Banking department: Bank of the Republic of Colombia Notes of issue department.. 113 122 102 (thousands of pesos): Balances abroad 5,623 5,641 3,746 Gold 221, 201 164,928 Treasury bills discounted. . 82 8 23 Foreign exchange 87, 114,965 Loans to Government 4 2 Loans and discounts 25, 26,348 Other assets 352 276 222 Government loans and securities. 65,549 66,202 Deposits 5,934 5,814 3,832 Other assets 30, 28,235 Other liabilities 240 234 262 Note circulation 204, 166,737Central Bank of Ireland (thousands Deposits 174, 145,440 of pounds): Other liabilities 51, 88,501 Gold 2,646 2,646 2,646 2,646 National Bank of Czechoslovakia Sterling funds 34,918 36,287 34,809 29,147 in G F P o o r r l a e d g ig u n e 7 e ( x m ch il a l n io g n e s of koruny): , 8 5 6 1 9 1, 8 5 1 1 3 7 1,5 78 1 6 7B Ba a n n k k N o o o t f f e J J c a a i v r p c a a u 6 n la 6 tion 37,564 38,933 37,455 31,793 Loans and discounts ,520 1,160 3,938 Other assets ,557129,579 60,085 c Corrected. 1 Beginning Aug. 27, 1945, figures published in the balance sheet of the Commonwealth Bank cover central banking operations only, while previously these statements included the operations of the General Banking Division. 2 Gold revalued provisionally at 49.318 francs per gram. The resulting increment is held for the account of the Treasury and is shown on the liabilities side under "Blocked Treasury account." 3 In addition to the gold increment includes notes not presented for exchange and forfeited to the State. * Includes current accounts transferred and to be transferred to blocked accounts and old notes not declared. 5 Latest month available. 6 For last available report from the central bank of Bulgaria (January 1943), see BULLETIN for July 1943, p. 697; of Finland (August 1943), see BULLETIN for April 1944, p. 405; of Greece (March 1941) and Japan (September 1941), see BULLETIN for March 1942, p. 281; of Hungary (November 1944), see BULLETIN for January 1946, p. 99; and of Java (January 1942), see BULLETIN for March 1943, p. 278. 7 First statement available since liberation is that for July 31. Until May 1945, known as the National Bank of Bohemia and Moravia. 8 In December 1945, State-guaranteed German assets, formerly included in "Clearing accounts" and "Other assets," were transferred to Government compensation account. 9 Items for issue and banking departments consolidated. 351 MARCH 1946 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CENTRAL BANKS—Continued Central Bank 1946 1945 Central Bank 1946 1945 (Figures as of last report (Figures as of last report date of month) Jan. Eec. Nov Jan date of month) Jan. Dec. Nov. Jan. Bank of Mexico (millions of pesos): Bank of Spain—Continued Metallic reserve1 746 60 Note circulation . . .. 17 94 265 "Authorized" holdings of securi- Deposits—Government 2,89 2,033 ties, etc 1,94 1,549 Other 9 79 3,164 Bills and discounts 39 403 Other liabilities S8 494 Other assets 78 4 Bank of Sweden (millions of kronor) Note circulation 1 618 1 334 Gold. . .. 1 06 1 04 1 052 Demand liabilities 1,367 1,096 Foreign assets (net) 7S 81 553 Other liabilities 179 17 Swedish Govt. securities and ad- Netherlands Bank (millions o vances to National Debt Office 1,500 1,43 1,339gu G S il i d o lv e ld e r 2 s r ) ( : including subsidiary coin) 71 713 93 O O N t t o h h t e e e r r c d a i o r s c s m u e e t l s a s t t i i o c n bills and advance 2 1 ,7 1 8 3 7 2 2 0 2,5149 4 6 2 1 , , 3 1 7 5 4 7 3 2 Foreign bills 4,539 4,53: 4,540 Demand deposits—Government 83 1,048 534- Discounts 206 Other 199 82 492 Loans 167 147 148 Other liabilities 739 78 737 Other assets 119 117 10? Swiss National Bank (millions of Note circulation—Old 397 440 5 189 francs): News 1, 386 1 011 Gold 4 757 4 777 70S 577 Deposits—Government ,493 ,596 105 Foreign exchange 185 '165 125 95 Blocked 489 519 Loans and discounts . 145 MQ8 104 183 Other 368 46 5 387 Other assets 84 110 89 81 Other liabilities 483 489 246 Note circulation 7,615 3 835 79S 409 Reserve Bank of New Zealand Other sight liabilities 1,261 1,110 1,093 1,241 (thousands of pounds): Other liabilities 296 306 298 28S Gold 809 ? 80? 7 80? Central Bank of the Republic of Sterling exchange reserve 82,881 74,177 42,784 Turkey (thousands of pounds): Advances to State or State un- Gold 300 996 994 699 9 76 382 dertakings 37 S04 30 865 77 901 Foreign exchange and foreign Investments 4,951 5 799 11,737 clearings 59,206 55 869 74,489- Other assets 1003 9?1 1 678 Loans and discounts.. . . 743 049 776 073 836,401 Note circulation 46 91S 49 79S 39 770 Securities 7? 996 68 378 14 282 Demand deposits 73 67 153 43 19? Other assets . . 77 191 97 960 95 607 Other liabilities 4 713 4 616 3 891 Note circulation 88? 475 894 375 941 58? Bank of Norway4 Deposits—Gold 91 871 8S 586 85 586 Bank of Paraguay—Monetary Other 139 953 137 853 185 694 Dept.5 (thousands of guaranies): Other liabilities . . 89 100 204 4S8 74 300 Gold 3,323 3,323 3 332 Bank of the Republic of Uruguay Foreign exchange . . .. 25,671 28 471 22 886 (thousands of pesos): Loans and discounts 3,009 4 841 4 832 Issue department: (Oct.)6 Government loans and securities. 10,142 10 145 10 727 Gold and silver. . . 122,751 22 751 Other assets 475 404 1 068 Note circulation 158,063 51 771 Note circulation 26,011 27 121 26 312 Banking department: Demand deposits 14,731 18503 14 786 Gold and silver 186,825 33 241 Other liabilities 1 878 1 560 1 747 Notes and coin 23 X4K 29 270 Central Reserve Bank of Peru Advances to State and to (thousands of soles): government bodies.... 9 944 18 088 Gold and foreign exchange 159 487 121 882 Other loans and discounts. . 95 014 91 589 Discounts 9Q 037 18 881 Other assets 90 95 549 Government loans 568 033 450 175 Deposits 87 620 63 025 Other assets 649 7? 879 Other liabilities 48 04 711 Note circulation 483 881 414 407 Central Bank of Venezuela (thou- Deposits 756 457 70 899 sands of bolivares): Other liabilities 36 868 78 511 Gold10 47,582 17 093 16,903 98 7S1 Bank of Portugal (millions of es- Foreign exchange (net) 35, 963 64 658 37, 672 04 751 cudos): (Aug.)6 Credits to national banks. . . . 10 157 14, 310 70 310 Gold7 1 419 1 414 Other assets 17,794 11 934 IS 409 99 030 Other reserves (net) 6 383 5 649 Note circulation—Central Bank. 75,936 75,379 40,338 98,328 Nonreserve exchange 9 670 9 194 National banks 9 9 813 10, 36S 16 643 Loans and discounts 98? 760 Deposits 09 144 11 131 771 SO S78 Government debt 1 020 1 020 Other liabilities 7,037 6,820 7,821 10,292 Other assets .. 76? 78? National Bank of the Kingdom Note circulation 7 717 7 415 of Yugoslavia4 O O t t h h e e r r s li i a g b h i t l i l t i i a e b s ilities 10 8 88 8 5 4 10 0 8 5 4 9 4 Ba m nk e nt f s o 1 r 1 ( I t n ho te u r s n an a d ti s o o n f a l S w S is e s t g tl o e l - d National Bank of Rumania4 francs): South African Reserve Bank8 Gold in bars 18,285 18,285 14,039- (thousands of pounds): Cash on hand and on current Gold 10 909 14 4S7 00 649 account with banks 41 ,669 41 9Q9 44 913- Foreign bills 59 043 42,679 24 356 Sight funds at interest 10,888 9,806 12,8ia Other bills and loans 3 604 3, 747 8 594 Rediscountable bills and accept- Other assets 01 737 106, 835 98 238 ances (at cost) 81, 790 82,328 77,361 Note circulation .. . .. 67 879 66 7S4 56 474 Time funds at interest 750 9,7S0 8 856 Deposits ?09 593 96 05 5 69 641 Sundry bills and investments. . . 98 935 99 760 99 331 Other liabilities 4 899 5,409 5 7?0 Other assets 93 140 98 Bank of Spain (millions of pesetas): Demand deposits (gold) 16,942 16,956 19,560 Gold . . ... 1,188 1,166 Short-term deposits (various Silver 597 609 currencies): Government loans and securities. 15,892 15,959 Central banks for own ac- Other loans and discounts... . 4,244 3,506 count 3,670 3, 178 6,599 Other assets 79? 1 ,717 Other 149 S 9 0?1 9 178 Long-term deposits: Special accounts 79, 001 ?9,001 79,001 Other liabilities 03, 301 03, 204 00, 12a r Revised. 1 Includes gold, silver, and foreign exchange forming required reserve (25 per cent) against notes and other demand liabilities. 2 Gold revalued in July 1945 from 2,098 to-2,970 guilders per fine kilogram. 3 Notes issued before October 1945 were gradually withdrawn from circulation and deposited in "blocked" accounts in accordance with the currency reform decrees effected between June and October 1945. 4 For last available reports from the central banks of Norway (March 1940) and Yugoslavia (February 1941), see BULLETIN for March 1942, p. 282; and of Rumania (June 1944), see BULLETIN for March 1945, p. 286. 5 The Bank of the Republic of Paraguay was reorganized in September 1944 under the name of Bank of Paraguay. The new institution is divided into a Monetary, a Banking, and a Mortgage Department. The first official balance sheet of the Monetary Department, which assumes central banking functions, was issued for the end of December 1944. 6 Latest month available. 7 Valued at average cost beginning October 1940. 8 Beginning July 1945, end-of-month statements have been available. 9 Includes small amount of non-Government bonds. 10 Beginning October 1944, a certain amount of gold, formerly reported in the Bank's account, shown separately for account of the Government. n See BULLETIN for December 1936, p. 1025. 352 FEDERAL RESERVE BULLETIN. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MONEY RATES IN FOREIGN COUNTRIES DISCOUNT RATES OF CENTRAL BANKS [Per cent per annum] Central bank of— ef D fe a ct t i e ve U K d n i o i n m t g ed - France m G a e n r- y g B i e u l m - N la e e n r t - h ds S d w en e- S l w a e n i r t - d z b C an e k n t o ra f— l R F 2 e a 8 b te . ef D fe a ct t i e ve ba C n e k n t o ra f— l R F 2 e a 8 b te . ef D fe a ct t i e ve In effect Dec. 31, Albania Mar. 21, 1940 Italy 4 Sept. 11, 1944 Jan 1 . 9 3 2 6 8, 1937... 1V2 A Be rg lg e i n u t m ina J M a a n r . . 16 1 , , 1 1 9 9 4 3 5 6 J Ja a v p a an.... 3 3 .29 J A a p n r . . 14 7 , , 1 1 9 9 3 3 7 6 June 15 Bolivia Nov. 8, 1940 Latvia. . . 5 Feb. 17, 1940 July 7 Lithuania 6 July 15, 1939 Aug. 4 Sept. 3 Nov. 13 May 10, 1938... British India. . 3 Nov. 28, 1935 Mexico June 4, 1942 M M a a y y 3 1 0 3 2V 2 C B a u n lg a a d r a ia 5 1^ D Fe e b c . . 8 1 , , 1 1 9 9 4 4 4 0 N Ne e w th e Z rl e a a n la d n s d . . J J u u l n y e 2 26 7, . 1 1 9 9 4 4 1 1 Sept. 28 Chile 3-4> Dec. 16, 1936 Norway Jan. 8, 1946 Oct. 27 Colombia 4 July 18, 1933 Peru Aug. 1, 1940 Nov. 25 2Y 2 Czechoslovakia Oct. 28, 1945 Portugal Jan. 12, 1944 Jan. 4,1939... Apr. 17 May 11 July 6 Denmark Jan. 15, 1946 Rumania May 8, 1944 Aug. 24 Ecuador May 26, 1938 South Africa. June 2, 1941 Aug. 29 El Salvador. .. Mar. 30, 1939 Spain Dec. 1, 1938 Sept. 28 Estonia Oct. 1, 1935 Sweden Feb. 9, 1945 Oct. 26 Finland Dec. 3, 1934 Switzerland.. Nov. 26, 1936 Dec. 15 Jan. 25, 1940... Apr. 9 VA May 17 France Jan. 20, 1945 Turkey July 1, 1938 J T J M u V a n n a ta e . r y . 2 1 1 2 7 7 6 9 , , 1 1 9 9 4 4 5 1 . . . . . . G G H Ir r e e u e r l n a e m g c n a a e d r n y y A F O N c p e o t r b v . . . . 2 1 2 9 2 1 3 , , , , 1 1 1 1 9 9 9 9 4 4 4 4 5 0 3 0 U U Y n . u d i g S o t o e . m d s S l . a K v R i i n . a . g . . - . . O J F u e c l b t y . . 2 1 6 1 , , , 1 1 1 9 9 9 3 3 3 6 5 9 Jan. 20 Feb. 9 2Y2 In effect Feb. 28, NOTE.—Changes since Jan. 31: None. 1946 2Y2 OPEN-MARKET RATES [Per cent per annum] Switzer- United Kingdom Germany Netherlands Sweden land Month Bankers' Treasury Day-to- Bankers' Private Day-to- Private Money Loans Private acceptances bills day allowance discount day discount for up to 3 discount 3 months 3 months money on deposits rate- money rate 1 month months rate 1929—Dec. 4.76 4.75 4.23 6.98 8.14 3.52 .87 3.15 1930—Dec. 2.30 2.34 1.60 4.82 5.54 1.39 .86 18 1931—Dec. 5.85 5.60 4.27 7.33 8.45 1.57 .59 75 1932—Dec. 1.02 1.04 .81 3.88 4.91 .37 .00 50 1933—Dec. 1.06 1.15 .77 3.88 4.97 .52 .00 50 1934—Dec. .57 .47 .70 3.50 .60 .00 50 1935—Dec. .71 .68 .75 3.00 3.20 .08 50 1936—Dec. .83 .84 .78 3.00 .76 .48 25 1937—Dec. .75 .75 .75 2.96 .13 .50 1.00 1938—Dec. .96 .93 .80 2.86 .13 .50 1.00 1939—Dec. 1.23 1.24 1.03 2.39 2.25 .75 1.25 1940—Dec. 1.03 1.01 1.00 1.95 2.25 1.25 1941—Dec. 1.03 1.01 1.03 1.98 1.25 1942—Dec. 1.03 1.01 1.00 2.13 1.96 1.25 1943—Dec. 1.03 1.01 1.00 2.13 1.92 1.25 1944—Dec. 1.03 1.00 1.02 2.13 1.25 1945—Jan.. 1.03 .01 1.00 2.13 1.25 Feb.. 1.03 .00 1.00 2.13 1.25 Mar. 1.03 .00 1.00 2.13 1.25 Apr.. 1.03 .01 1.00 1.25 May 1.03 .00 1.03 1.25 June 1.03 1.00 1.13 1.25 July. 1.03 1.00 1.13 1.25 Aug. 1.03 1.00 1.13 1.25 Sept. 1.03 1.00 1.13 1.25 Oct.. .83 .75 .96 1.25 Nov. .53 .51 .63 1.25 Dec. .53 .50 .63 1.25 NOTE.—For monthly figures on money rates in these and other foreign countries through 1941, see Banking and Monetary Statistics, Table 172, pp. 656-661, and for description of statistics see pp. 571-572 in same publication. MARCH 1946 353 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

COMMERCIAL BANKS United Kingdom 1 Assets Liabilities b ( m 1 a i 1 n l l k i L o s s o . n t n e s r d l F o o in f i n g g p u ) c o r l e e u s a n r d i i n n s g re C se a r s v h es M c n o a s l o n h l e t o i a y c r n t e d at B co il u ls n d te i d s- r T e d r c e e e p a i o s p u s t i s r t y 2 Securities Loans to 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 lia O b t i h li e ti r es 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—December. 366 141 171 758 999 823 324 3,329 2,168 1,161 253 1942—December. 390 142 198 896 1,120 794 325 3,629 2,429 1,200 236 1943—December. 422 151 133 ,307 ,154 761 349 4,032 2,712 1,319 245 1944—December. 500 199 147 ,667 ,165 772 347 4,545 3,045 1,500 250 1945—January. . . 460 198 159 ,663 ,165 765 301 4,462 2,968 1,495 248 February. . 455 188 140 ,639 ,160 769 305 4,405 2,904 1,501 250 March 464 180 149 ,681 ,153 780 299 4,459 2,944 1,516 246 April 472 180 109 ,821 ,140 749 300 4,525 2,994 1,530 245 May 482 196 120 ,882 ,126 757 297 4,617 3,064 1,553 243 June , 494 195 135 ,939 ,128 774 331 4,752 3,147 1,605 243 July 500 198 181 ,994 ,123 767 300 4,819 3,205 1,613 244 August... . 511 233 195 ,993 ,126 769 292 4,875 3,236 1,638 244 September 518 226 215 ,971 ,146 771 299 4,898 3,266 1,632 247 October. . . 513 201 189 ,925 ,178 799 308 4,859 3,277 1,582 254 November 496 229 296 ,703 ,201 809 318 4,789 3,254 1,535 263 December. 536 252 369 ,523 1,234 827 374 4,850 3,262 1,588 265 Assets Liabilities Canada (10 chartered banks. Entirely in Canada Se lo c a u n ri s ty e D x e c p lu o d s i i n ts g p in ay te a r b b l a e n i k n d C e a p n o a s d it a s En C d a i n n o a f d m m i i a l o n li n o d t n h o s l l f o a i f g rs u ) res re C se a r s v h es Se lo c a u n ri s ty d lo i O s a c n t o h s u e a n r n ts d d a f u b a n o e b a d r e n r f i o k n r g o a s e n d m t Securities a O s t s h e e ts r ci N r ti c o o u t n l e a- Total Demand Time lia O b t i h li e ti r es 1938—December. 263 65 940 166 1,463 535 2,500 840 1,660 843 1939—December. 292 53 1,088 132 1,646 612 85 2,774 1,033 1,741 963 1940—December. 323 40 1,108 159 1,531 570 80 2,805 1,163 1,641 846 1941—December. 356 32 1,169 168 1,759 653 71 3,105 1,436 1,669 962 1942—December. 387 31 1,168 231 2,293 657 60 3,657 1,984 1,673 1,049 1943—December. 471 48 1,156 250 2,940 744 42 4,395 2,447 1,948 1,172 1944—December. 550 92 1,211 214 3,611 782 34 5,137 2,714 2,423 1,289 1945—January.. 567 95 1,156 244 3,571 731 32 5,049 2,525 2,524 1,283 February. 539 80 1,125 254 3,624 717 31 5,021 2,390 2,631 1,287 March. . . . 544 78 1,094 219 3,606 708 31 4,938 2,214 2,725 1,280 April 598 82 1,047 269 3,799 750 30 5,210 2,475 2,735 1,306 May 622 125 1,299 251 3,885 775 29 5,616 3,053 2,563 1,312 June 622 123 1,142 248 996 766 29 5,540 2,894 2,646 1,326 July 591 135 1,079 237 802 769 28 5,269 2,528 741 1,316 August... 581 112 1,021 242 835 789 28 5,229 2,396 2,833 1,324 September 582 109 1,002 237 3; 960 750 27 5,269 2,331 2,935 1,344 October. . 640 130 1,009 242 4,159 812 27 5,573 2,582 2,992 1,392 November 646 239 1,372 229 4,015 888 26 6,013 3,197 2,816 1,350 December. 694 251 1,274 283 4,038 779 26 5,941 3,076 2,865 1,386 Assets Liabilities France (4 large banks. End Deposits of month figures in Cash Due from Bills dis- Other Own Other millions of francs) reserves banks counted Loans assets accept- liabilities Total Demand Time ances 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—December. 6,418 3,863 46,546 8,346 2,229 62,032 61,270 762 558 4,813 1941—December. 6,589 3,476 61,897 8,280 2,033 76,675 75,764 912 413 5,187 1942—December. 7,810 3,458 73,917 10,625 2,622 91,549 91,225 324 462 6,422 1943—October. . 7,133 3,877 88,289 14,215 2,448 108,368 107,100 1,268 411 7,182 November 7,203 3,960 86,754 14,361 2,653 107,200 105,811 1,390 404 7,326 December. 8,548 4,095 90,897 14,191 2,935 112,732 111,191 1,541 428 7,506 1944—January. . 7,510 4,125 90,024 13,737 1,676 110,485 108,883 1,601 419 6,168 February. 7,776 4,116 91,847 13,936 1,618 112,846 111,164 1,682 412 6,035 March. . . 7,414 4,010 92,648 16,481 1,775 115,558 113,696 1,862 404 6,366 April 7,499 4,000 95,337 16,568 1,853 118,370 116,449 1,922 382 6,505 May 8,092 4,056 96,443 16,666 2,014 120,312 118,307 2,005 413 6,546 June 10,377 4,039 96,245 16,584 2,087 122,149 120,102 2,048 403 6,780 July 10,555 3,970 101,529 16,758 2,261 127,704 125,493 2,212 368 7,000 August... 10,175 3,933 100,287 17,731 2,522 127,160 124,627 2,533 435 7,054 by i#n x d T iv h i r d o u u a g l h b A an u k g s u s f t o r 1 9 d 3 a 9 y , s a , v v e a ra ry g i e n s g o f fr w om ee k b l a y n f k ig u to re b s; a n b k eg , i t n o n w in a g rd S e th p e te m en b d e r o f 1 9 t 3 h 9 e , e m n o d n -o th f- . month figures, representing aggregates of figures reported 2 Represent six-month loans to the Treasury at \y% per cent through Oct. 20, 1945, and at Y% per cent thereafter. NOTE.—For back figures and figures on German commercial banks, see Banking and Monetary Statistics, Table 168, pp. 648-655, and for description of statistics see pp. 566-571 in same publication. 354 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE RATES [Averages of certified noon buyingrates in New York for cable transfers. In cents per unit of foreign currency Argentina Australia Brazil Canada Chile (peso) (pound) g B iu el m - (cruzeiro1) B I r n i d ti i s a h g B a u r l i - a (dollar) (peso) C (y h u i a n n a Year or month Official S E p x e p c o ia rt l Official Free (franc) Official Free (rupee) (lev) Official Free Official Export Sh h a a n i) g- 1937 32 959 393.94 3.3752 8.6437 6.1983 37.326 1.2846 100.004 5.1697 24.OOOO 29.606 1938 32 597 389.55 3.3788 5.8438 36.592 1 2424 99.419 5.1716 4.0000 21.360 1939 . . . . 30.850 353.38 3.3704 6.0027 5.1248 33.279 21.2111 96.018 5.1727 4.0000 11.879 1940 29 773 2322.80 305.16 23.3760 6.0562 5.0214 30.155 290.909 85.141 5.1668 4.0000 6.000 1941 29.773 223.704 322.80 321.27 6.0575 5.0705 30.137 90.909 87.345 25.1664 24.0000 25.313 1942 29.773 23.704 322.80 321.50 6.0584 5.1427 30.122 90.909 88.379 1943 29.773 24.732 322.80 2321.50 6.0586 5.1280 30.122 90.909 89.978 1944 29.773 25.125 322.80 6.0594 5.1469 30.122 90.909 89.853 1945 29.773 25.125 2322.80 2321'.17 22'. 28606.0602 5.1802 30.122 90.909 90.485 1945—Feb 29.773 25.125 322.80 6.0602 5.1803 30.122 90.909 90.553 Mar 29.773 25.125 322.80 6.0602 5.1802 30.122 90.909 90.295 Apr 29.773 25.125 322.80 6.0602 5.1802 30.122 90.909 90.506 May 29.773 25.125 322.80 6.0602 5.1802 30.122 90.909 90.753 J T u u n ly e 2 2 9 9 . . 7 7 7 7 3 3 2 2 4 5 . . 1 1 2 2 5 5 322.80 321.35 6 6 . . 0 0 6 6 0 0 2 2 5 5 . . 1 1 8 8 0 0 2 2 3 3 0 0 . . 1 1 2 2 2 2 9 9 0 0 . . 9 9 0 0 9 9 9 9 0 0 . . 8 7 2 3 8 6 Aug 29.773 25.125 320.87 6.0602 5.1802 30.122 90.909 90.475 Sept 29.773 25.125 320.70 32.2883 6.0602 5.1802 30.122 90.909 89.908 Oct 29.773 25.125 321.31 2.2879 6.0602 5.1802 30.122 90.909 90.358 Nov. 29.773 25.125 321.41 2.2857 6.0602 5.1802 30.122 90.909 90.736 Dec 29.773 25.125 321.41 2.2839 6.0602 5.1802 30.122 90.909 90.725 1946—Jan 29.773 25.125 321.41 2.2840 6.0602 5.1802 30.122 90.909 90.712 Year or month C ( o p b l e i o s a o m ) - C s ( l k o z o e v r c a u h k n o a ia - ) ( m D kr e a o n r n k - e) ( l m F a k i a n a n r ) d - k- F (f r ra 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 e ra a e c ) c h e - ( H K do o o l n n la g g r) (p H g e a u n r n g y o - ) I ( t li a r l a y ) J ( a y p en a ) n ( M p i e c e s o x o - ) e N ( r g l e e u a r t i n ) l h d d - - s (p Z l N o a e e u n a w n d - d) 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 2.1J67 2.8781 40.164 .8958 30.457 19.727 5.2605 28.451 22.122 55.009 392.35 1939 57.061 23.4252 20.346 1.9948 2.5103 40.061 .8153 27.454 19.238 5.1959 25.963 19.303 53.335 354.82 1940 57.085 219.308 1.8710 22.0827 40.021 2.6715 22.958 18.475 5.0407 23.436 18.546 253.128 306.38 1941 57.004 22.0101 239.968 224.592 219.770 25.0703 223.439 20.538 322.54 1942 57 052 20 569 322.78 1943 57.265 20.577 324.20 1944 57 272 20 581 324.42 1945 57.014 21 9711 20.581 237.933 323.46 1945—Feb 57 140 20 582 324.42 Mar 57.036 20.582 324.42 Apr 56 980 20 582 324.42 May 56 980 20.582 324.42 June 56.980 20.582 324.42 July 56 980 20.582 322.69 Aufif 56 980 2 0189 20 581 322.16 Sept.. 56.980 2.0189 20.578 321.99 Oct 56 980 2.0189 20.57-8 322.60 Nov 56.980 2 0186 20.578 437.933 322.70 Dec 56 980 1.7822 20.579 37.933 322.70 1946—jan# m 56.980 .8410 20.580 37.933 322.70 United Kingdom Uruguay Year or month N (k o r r o w ne a ) y P (z o l l o a t n y d ) ( P es o g c r a u t l d u o - ) R ( u n le m i u a ) a- ( A S p o o fr u u i n t c h d a ) ( S pe p s a e i t n a) m S S (d t e o e r t l n a t l l a i t e t s r - s ) ( S k d r w e o n e n - a) ( e S f r r w a la n it n c z ) d - (pound) Con ( - peso N ) on- Y ( s d l u a in v g a i o r a - ) Official Free trolled controlled 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 23.226 218.835 4.0375 .7111 440.17 10.630 51.736 23.991 22.525 443.54 62.011 236^789 2.2716 1940 222.709 3.7110 2.6896 397.99 9.322 46.979 23.802 22.676 2403.50 383.00 65.830 37.601 2.2463 1941 24.0023 398.00 29.130 47.133 223.829 223.210 403.50 403.18 65.830 43.380 22.2397 1942 398.00 246.919 403.50 403.50 65.830 52.723 1943 398.00 403.50 2403.50 65.830 52.855 1944 398.00 403 50 65.830 53.506 1945 399.05 2403.50 2403.02 65.830 55.159 1945 Feb 398.00 403.50 65.830 54.197 Mar 398.00 403.50 65.830 54.197 398.00 403.50 65.830 54.253 398.00 403.50 65.830 54.265 June 398.00 403.50 65.830 54.265 July 398.30 402.95 65.830 55.489 400.50 402.69 65.830 56.125 Sept 400.50 402.49 65.830 56.175 Oct 400.50 403.24 65.830 56.282 Nov. 400.50 403.38 65.830 56.290 Dec 400.50 403.37 65.830 56.290 1946—Jan 400.50 403.38 65.830 56.290 1 Prior to Nov. 1, 1942, the official designation of the Brazilian currency unit was the "milreis." 2 Average of daily rates for that part of the year during which quotations were certified. 3 Based on quotations beginning Sept. 24. 4 Based on quotations beginning Nov. 2. NOTE.—For back figures, see Banking and Monetary Statistics, Table 173, pp. 662-682. For description of statistics see pp. 572-573 in same publication, and for further information concerning developments affecting the averages during 1942 and 1943 see BULLETIN for February 1943, p. 201, and February 1944, p. 209. 355 MARCH 1946 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

PRICE MOVEMENTS IN PRINCIPAL COUNTRIES WHOLESALE PRICES—ALL COMMODITIES [Index numbers] Year or month U ( S 1 1 n t 9 a 0 2 i 0 t t 6 e e ) s d = C (1 a 1 9 n 0 2 0 a 6 ) d = a K U ( i 1 n 1 n 9 g 0 3 i 0 t d 0 e ) o d = m F (1 r 1 9 a 0 1 n 0 3 c ) e = G ( e 19 r 1 1 m 0 3 0 a ) n = y (1 I 1 9 t 0 a 2 0 8 ly ) = (O J 19 a 1 c 0 0 p t 0 0 o a ) b n = er N (1 l = e 9 a t 2 n 1 h 6 0 d e - 0 s 3 r ) - 0 S (1 w 1 9 0 e 3 0 5 d ) e = n ( S Ju w = l l a y i 1 t n z 0 d 1 e 0 9 r ) 1 - 4, 1926 100 100 1 124 695 134 237 106 U26 144 1932 65 67 86 427 97 70 161 65 i 92 96 1933 66 67 86 398 93 63 180 63 i 90 91 1934 75 72 88 376 98 62 178 63 i 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 75 103 707 107 99 278 74 115 111 1940 79 83 137 2 901 110 116 311 3 88 146 143 1941 87 90 153 112 132 329 172 184 1942 99 96 159 114 189 210 1943 103 100 163 116 196 218 1944 104 103 166 196 223 1945 106 103 169 221 1945—January 105 103 167 195 221 February 105 103 167 195 221 IVIarch. 105 103 168 196 221 April 106 103 168 196 221 IVIay 106 103 168 196 221 June 106 103 170 197 222 July 106 104 171 196 222 August 106 103 171 194 223 September 105 103 170 191 222 October 106 103 169 191 220 November 107 103 169 '191 219 December 107 103 169 214 1946—January 107 172 r Revised. 1 Approximate figure, derived from old index (1913 =100). 2 Average based on figures for 5 months; no data available since May 1940, when figure was 919. 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 m h e e s o r d- pr F o a d r u m cts R fa m p a g c w a o a t r u o n t r d a l u e y s n - d d F f u a c m g l h c l o a t y ie u o n f d r u l a e s y - d nd Foods p I r n o tr d d i u a u l s c - ts p A r t g o u r d r i u c a u c l l t - s a t p n f r I r i d i n n o a i d l d s s u h u r e e s c a m - d t w s i- p tr I r i i n o a s d h d l u e u f d s c i - n ts - 1926 100 100 100 100 100 100 129 130 150 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 1291 1941 82 S3 89 71 82 89 146 156 112 100 133; 1942 106 100 96 83 90 92 158 160 US 102 134 1943 123 107 97 96 99 93 160 164 119 102 135 1944 123 105 99 103 104 94 158 170 1945 128 106 100 105 105 94 158 175 1945—January 126 105 99 104 104 94 156 173 February 127 105 99 105 105 94 157 173 March 127 105 99 105 105 94 156 174 April 129 106 99 105 105 94 156 174 May 130 107 99 105 105 94 156 175 June 130 108 100 106 106 94 160 175 July 129 107 100 108 107 94 161 176 August 127 106 100 106 106 94 161 176 September 124 105 100 104 105 94 158 175 October 127 106 100 106 105 94 158 175 November 131 108 100 106 105 94 158 175 December 132 c109 101 106 105 94 158 175 1946—January 130 107 101 158 180 c Corrected. Sources.—See BULLETIN for May 1942, p. 451; March 1935, p. 180; and March 1931, p. 159. 356 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

PRICE MOVEMENTS IN PRINCIPAL COUNTRIES—Continued RETAIL FOOD PRICES COST OF LIVING [Index numbers] [Index numbers] United Switz- United Switz- United Can- King- Ger- Nether- er- United Can- King- Ger- Nether- er- Year or States ada dom many lands land Year or States ada dom many lands land month (1935-39 (1935-39 (July (1913-14 (1911-13 (June month (1935-39 (1935-39 (July (1913-14 (1911-13 (June = 100) = 100) 1914 = 100) = 100) 1914 = 100) = 100) 1914 = 100) = 100) 1914 = 100) = 100) = 100) = 100) 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 1 132 130 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 3 148 151 1941 106 116 168 129 175 1941 105 112 199 133 174 1942 . 124 127 161 132 200 1942 117 117 200 137 193 1943 138 131 166 134 211 1943 124 118 199 139 203 1944 136 131 168 215 1944 126 119 201 208 1945 139 133 170 215 1945 128 119 203 209 1945-January 137 130 168 216 1945-January... 127 119 202 209 February 137 131 168 216 127 119 202 209 March. . . . 136 131 168 216 March. . . . 127 119 202 209 April 137 131 168 216 April 127 119 202 209 May 139 132 168 216 May 128 119 203 210 June 141 133 170 217 June 129 120 204 210 July 142 136 176 217 July 129 120 207 211 August.... 141 136 172 216 August 129 121 205 210 September. 139 134 169 216 September. 129 120 203 210 October.. . 139 133 169 213 October . 129 120 203 208 November. 140 134 169 210 November 129 120 203 207 December. 141 134 169 210 December 130 120 203 207 1946-January... 141 P133 169 1946-January... 130 P120 203 ^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 (1926 = 100) Year or month U S n ta i t t e e s d K U in n g it d e o d m France Germany Nether- U S n ta i t t e e s d France N l e a t n h d e s r- (d p e ri r c iv e e )1 d 1 ( 9 D 21 e ce = m 1 b 0 e 0 r ) (1938=100)2 (a p v ri e c r e a ) g 3 e lands4 (1 = 9 3 1 5 0 - 0 3 ) 9 U K n i i n t g ed - m G a e n r- y (1938 = 100)2 (1930 = 100) dom Number of issues. . 15 87 50 3 139 8 402 278 « 2295 100 1 1 19 9 9 4 3 4 1 9 0 . 1 1 1 1 1 1 3 7 5 . . . 8 9 8 1 1 1 1 1 2 2 8 3 . . . 3 3 8 9 6 1 1 1 1 1 4 4 4 3 . . 2 2 .4 1 1 9 0 0 9 0 3 . . . 0 7 0 7 9 7 8 0 7 4 . . . 9 9 3 9 8 8 4 8 0 . . . 2 1 0 7 7 7 2 5 0 . . . 5 9 8 1 1 9 3 1 4 6 4 . . . 1 8 6 » 61 3 1 4 0 1 0 8 2 8 1 8 9 2 9 5 9 . . . 7 0 0 1942 118.3 127.3 146.4 6103.3 94.7 69.4 75.3 142.1 479 131.5 1943 120.3 127.8 146.6 98.5 91.9 84.5 145.0 540 151.0 1944 120.9 127.5 150.5 99.8 88.6 551 1945 122.1 128.3 P152.1 121.5 92.4 P450 1945—January. . . . 121.6 128.5 153.8 108.4 91.0 512 February... 121.9 128.7 154.2 113.0 90.6 505 March 122.7 128.7 154.4 111.8 91.1 498 April 122.9 129.3 153.1 114.4 92.0 469 May 122.3 128.1 153.8 118.2 92.8 414 June 122.1 127.8 151.9 120.7 92.8 386 July 122.3 128.3 151.1 118.4 93.7 360 August 121.7 128.3 150.6 117.9 91.4 421 September. . 121.6 128.2 150.9 126.1 92.0 477 October 121.9 128.5 150.2 132.0 93.2 467 November. . 122.0 127.8 150.3 136.9 94.5 441 December... 121.9 127.5 P151.2 139.7 94.2 1946—January.... 123.8 144.8 Preliminary. 1 Figures represent calculated prices of a 4 per cent 20-year bond offering a yield equal to the monthly average yield for 15 high-grade corporate bonds. Source.—Standard and Poor's Corporation; for compilations of back figures on prices of both bonds and common stocks in the United States see Banking and Monetary Statistics, Table 130, p. 475, and Table 133, p. 479. 2 Published by the Ministry of National Economy with new base of 1938 =100. Figures are for the last Friday of each month. The number of bonds included in the new index was increased to 50 (formerly 36). The index for stocks was based on 300 issues until Dec. 6, 1945, and on 295 thereafter as a result of the nationalization of five banks. For complete information on the composition of the bond and stock indexes see "Bulletin de la Statistique Generale" December 1942, pp. 511-513, and July-August 1942, pp. 364-371, respectively. For back figures for both indexes from 1938 through 1941 on a monthly basis see "Bulletin de la Statistique Generale" for October-December 1944, pp. 274-276. 3 Since Apr. 1, 1935, the 139 bonds included in the calculation of the average price have all borne interest at 4}% 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. 4 Indexes of reciprocals of average yields. For old index, 1929-1936, 1929 = 100; average yield in base year was 4.57 per cent. For new index beginning January 1937, Jan.-Mar. 1937 =100; average yield in base period was 3.39 per cent. 6 This number, originally 329, has declined as the number of securities eligible for the index has diminished. In May 1941 it was down to"287. 6 Average based on figures for 5 months; no data available June-Dec. 7 Average based on figures for 7 months; no data available May-Sept. 8 Average based on figures for 9 months; no data available May-July. • Average based on figures for 10 months; no data available Jan.-Feb. 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. MARCH 1946 357 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 ELLIOTT THURSTON, Assistant to the Chairman CHESTER MORRILL, Special Adviser to the Board of Governors OFFICE OF THE SECRETARY DIVISION OF BANK OPERATIONS S. R. CARPENTER, Secretary EDWARD L. SMEAD, Director BRAY HAMMOND, Assistant Secretary J. R. VAN FOSSEN, Assistant Director J. E. HORBETT, Assistant Director LEGAL DIVISION DIVISION OF SECURITY LOANS GEORGE B. VEST, General Counsel CARL E. PARRY, Director J. LEONARD TOWNSEND, Assistant General Counsel BONNAR BROWN, Assistant Director DIVISION OF PERSONNEL ADMINISTRATION ROBERT F. LEONARD, Director DIVISION OF RESEARCH AND STATISTICS WOODLIEF THOMAS, Director DIVISION OF ADMINISTRATIVE SERVICES CHANDLER MORSE, Assistant Director LISTON P. BETHEA, Director FRED A. NELSON, Assistant Director DIVISION OF EXAMINATIONS OFFICE OF ADMINISTRATOR FOR WAR LOANS LEO H. PAULGER, Director EDWARD L. SMEAD, Administrator C. E. CAGLE, Assistant Director GARDNER L. BOOTHE, II, Assistant Administrator FEDERAL FEDERAL OPEN MARKET COMMITTEE ADVISORY COUNCIL MARRINER S. ECCLES, Chairman CHAS. E. SPENCER, JR., BOSTON DISTRICT ALLAN SPROUL, Vice Chairman Vice President IRA CLERK JOHN C. TRAPHAGEN, NEW YORK DISTRICT ERNEST G. DRAPER DAVID E. WILLIAMS, PHILADELPHIA DISTRICT R. M. EVANS JOHN H. MCCOY, CLEVELAND DISTRICT HUGH LEACH JOHN K. MCKEE A. L. M. WIGGINS, RICHMOND DISTRICT W. S. MCLARIN, JR. ROBERT STRICKLAND, ATLANTA DISTRICT RONALD RANSOM M. S. SZYMCZAK EDWARD E. BROWN, CHICAGO DISTRICT C. S. YOUNG President JAMES H. PENICK, ST. LOUIS DISTRICT CHESTER MORRILL, Secretary S. R. CARPENTER, Assistant Secretary JULIAN B. BAIRD, MINNEAPOLIS DISTRICT GEORGE B. VEST, General Counsel J. LEONARD TOWNSEND, Assistant General Counsel A. E. BRADSHAW, KANSAS CITY DISTRICT WOODLIEF THOMAS, Economist E. A. KINCAID, Associate Economist ED H. WINTON, DALLAS DISTRICT JOHN K. LANGUM, Associate Economist RENO ODLIN, SAN FRANCISCO DISTRICT EARLE L. RAUBER, Associate Economist O. P. WHEELER, Associate Economist WALTER LICHTENSTEIN, Secretary JOHN H. WILLIAMS, Associate Economist ROBERT G. ROUSE, Manager of System Open Market HERBERT V. PROCHNOW, Acting Secretary Account 358 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CHAIRMEN, DEPUTY CHAIRMEN, AND SENIOR OFFICERS OF FEDERAL RESERVE BANKS Federal Reserve Chairman1 President Vice Presidents Bank of Deputy Chairman First Vice President Boston.... Albert M. Creighton Laurence F. Whittemore E. G. Hult Carl B. Pitman Henry I. Harriman William Willett J. C. Hunter2 O. A. Schlaikjer New York. Beardsley Ruml Allan Sproul E. O. Douglas H. V. Roelse William I. Myers L. R. Rounds J. W. Jones Robert G. Rouse H. H. Kimball John H. Williams L. W. Knoke V. Willis Walter S. Logan R. B. Wiltse A. Phelan Philadelphia. . Thomas B. McCabe Alfred H. Williams E. C. Hill C. A. Mcllhenny Warren F. Whittier W. J. Davis Wm. G. McCreedy Philip M. Poorman2 C. A. Sienkiewicz Cleveland. . . . George C. Brainard Ray M. Gidney W. D. Fulton B. J. Lazar Reynold E. Klages Wm. H. Fletcher J. W. Kossin Martin Morrison A. H. Laning3 W. F. Taylor Richmond. . . . Robert Lassiter Hugh Leach Claude L. Guthrie3 C. B. Strathy W. G. Wysor J. S. Walden, Jr. E. A. Kincaid Edw. A. Wayne R. W. Mercer Atlanta. . . Frank H. Neely W. S. McLarin, Jr. V. K. Bowman H. F. Conniff J. F. Porter Malcolm H. Bryan L. M. Clark S. P. Schuessler Chicago Simeon E. Leland C. S. Young Allan M. Black2 John K. Langum W. W. Waymack Charles B. Dunn Neil B. Dawes O. J. Netterstrom J. H. Dillard A. L. Olson E. C. Harris Alfred T. Sihler St. Louis...... Russell L. Dearmont Chester C. Davis O. M. Attebery Wm. E. Peterson Douglas W. Brooks F. Guy Hitt A. F. Bailey William B. Pollard Henry H. Edmiston C. A. Schacht C. M. Stewart Minneapolis. . Roger B. Shepard J. N. Peyton H. G. McConneli E. W. Swranson W. D. Cochran O. S. Powell A. W. Mills2 Sigurd Ueland Otis R. Preston Harry I. Ziemer Kansas City. , Robert B. Caldwell H. G. Leedy O. P. Cordill John Phillips, Jr. Robert L. Mehornay Henry 0. Koppang L. H. Earhart G. H. Pipkin C. O. Hardy D. W. Woolley3 Dallas J. R. Part en R. R. Gilbert E. B. Austin3 W. E. Eagle R. B. Anderson W. D. Gentry R. B. Coleman W. H. Holloway H. R. DeMoss L. G. Pondrom San Francisco. Henry F. Grady Ira Clerk J. M. Leisner3 H. F. Slade Harry R. Wellman C. E. Earhart H. N. Mangels W. F. Volberg OFFICERS IN CHARGE OF BRANCHES OF FEDERAL RESERVE BANKS Federal Reserve Federal Reserve Branch Chief Officer Branch Chief Officer Bank of Bank of New York Buffalo I. B. Smith* Minneapolis. . . . Helena R. E. Towle* Cleveland Cincinnati B. J. Lazar5 Pittsburgh J. W. Kossin5 Kansas City. . . . Denver G. H. Pipkin5 Oklahoma City 0. P. Cordill5 Richmond Baltimore W. R. Milford4 Omaha L. H. Earhart5 Charlotte W. T. Clements* Atlanta Birmingham P. L. T. Beavers* Jacksonville Geo. S. Vardeman, Jr.* Dallas El Paso W. E. Eagle5 Nashville Joel B. Fort, Jr.* Houston L. G. Pondrom8 New Orleans E. P. Paris4 San Antonio W. H. Holloway* Chicago Detroit E. C. Harris5 San Francisco.. . Los Angeles W. N. Ambrose* St. Louis Little Rock A. F. Bailev6 Portland D. L. Davis* Louisville C. A. Schacht6 Salt Lake City W. L. Partner4 Memphis William B. Pollard5 Seattle C. R. Shaw* 1 Also Federal Reserve Agent. 2 Cashier. 3 Also Cashier. 4 Managing Director. 5 Vice President. 359 MARCH 1946 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE SYSTEM BOUNDARIES OF FEDERAL RESERVE DISTRICTS AND THEIR BRANCH TERRITORIES 3P ==== BOUNDARIES OF FEDERAL RESERVE DISTRICTS BOUNDARIES OF FEDERAL RESERVE BRANCH TERRITORIES if BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM w ® FEDERAL RESERVE BANK CITIES ?3 • FEDERAL RESERVE BRANCH CITIES OCTOBER I. 1945 VE SYSTEM, td w Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis