Federal Reserve Bulletin, 1950-08

F E D E R AL RE BULLETIN AUGUST 1950 l-f"^ ~fi? /^/R\n. Qf* 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 WINFIELD W. RIEFLER RALPH A. YOUNG SUSAN S. BURR 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 Construction Activity and Mortgage Credit. 935-942 Statement on the Defense Production Act of 1950. 943-946 Defense Loan Policy. 947 1950 Survey of Consumer Finances: PART III. Distribution of Consumer Income in 1949. 948-965 Estimated Liquid Asset Holdings of Individuals and Businesses. 966-967 Report of National Advisory Council, October 1, 1949-March 31, 1950. . 968-984 Annual Report of the Bank for International Settlements. . 985-1011 Current Events and Announcements. . 1011-1012 National Summary of Business Conditions. 1013-1014 Financial, Industrial, Commercial Statistics, U. S. (See p. 1015 for list of tables) . 1015-1074 International Financial Statistics (See p. 1075 for list of tables). . 1075-1093 Board of Governors and Staff; Open Market Committee and Staff; Federal Advisory Council 1094 Senior Officers of Federal Reserve Banks; Managing Officers of Branches. 1095 Federal Reserve Publications. 1096-1097 Map of Federal Reserve Districts. 1098 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 36 August 1950 NUMBER 8 CONSTRUCTION ACTIVITY AND MORTGAGE CREDIT The Korean outbreak in the latter part of influenced in part by Government guarantee June came at a time when economic activity and insurance. A record volume of mortin the United States had reached a very high gages on new and old properties was being rate and prices were rising moderately from written, and the mortgage debt outstanding levels not much below the 1948 peaks. Pro- had reached a new peak, more than twice duction was at a new postwar peak with as high as at the end of the war. building activity and automobile production During July, consumer buying expanded at exceptionally high levels. Demands gen- greatly and businesses substantially increased erally were also at advanced levels and were their orders for materials and capital equipincreasing. Consumers were buying auto- ment. Buying was financed by high and mobiles and houses in record volume. Busi- rising consumer and business incomes, subness demands for inventories were expand- stantial further expansion of credit to private ing further, and earlier plans for expenditure borrowers, and use of liquid assets. As a reon plant and equipment were being revised sult of heavy buying, prices advanced sharply. upward. Buying was supported in part by By early August basic commodity prices had substantial expansion of credit, especially risen 16 per cent in five weeks and all comhome mortgage and consumer instalment modities at wholesale had advanced 5 per credit, and by a more active use of currency cent, with farm products and foods up 8 per and bank deposits. cent. Consumer prices, which had risen 1 New construction was in record volume, per cent in June, also advanced further in reflecting primarily the exceptionally high this period—probably at a more marked rate. rate of residential building. New houses In order to provide quickly the substantial were being started more rapidly than those volume of materials needed for national deunder construction were being completed, fense and to prevent demands of consumers and at a rate half again as great as a year and businesses, supported by private credit, earlier. Demands for a wide range of con- from adding to existing inflationary presstruction materials were pressing on avail- sures, the President initiated a series of able supplies. Reflecting increasing material Governmenf actions. On July 18 he directed prices and labor costs, construction costs had the Federal agencies concerned with real been rising since the beginning of the year. estate credit operations to restrict Federal An important factor in the demand for programs affecting residential construction. housing was the large volume of funds avail- On July 19 he requested Congress to auable on residential mortgages from banks thorize emergency powers to limit the use of and other lenders on exceptionally easy terms, essential materials; to regulate consumer, AUGUST 1950 935 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CONSTRUCTION ACTIVITY AND MORTGAGE CREDIT real estate, and commodity trading credit; In addition, the Federal Housing Adminisand to assure adequate financing for defense tration reduced the size of the maximum production and plant. Since July 24 the insurable mortgage on a single-family house President has requested additional appropri- from $16,000 to $14,000 and required that, ations for various defense activities and has effective August 1, every borrower on proprecommended higher taxes to meet the addi- erty improvement loans insured under tional Federal expenditures. Title I of the National Housing Act make a down payment of 10 per cent of the price RESTRICTION OF RESIDENTIAL CONSTRUCTION of the work. Previously, no down payment As a result of the President's letters of had been required. The Veterans Adminis- July 18, the various Federal agencies con- tration required that gratuity payments by cerned with residential construction and fi- the Government to veteran borrowers on nancing took steps to limit the availability GI home loans (the popular name for home of mortgage credit and to reduce the volume mortgage loans guaranteed or insured under of residential construction. The President the Servicemen's Readjustment Act) be apused his discretionary power directly to plied to reduction of the loan principal. Such limit the additional insuring authority of gratuity payments, which are equal to 4 per the Federal Housing Administration to 650 cent of the amount of the guaranteed portion million dollars of the 1,250 million provided of the loan (but not more than $160), could by the Housing Act of 1950. formerly be used as the borrower chose in The Federal Housing Administration connection with payments due on the propand the Veterans Administration promptly erty. These new VA regulations apply also amended the regulations under which they to direct loans made by the Administration insure or guarantee mortgage loans. Effec- under the Housing Act of 1950, and the 150 tive July 19 these agencies recognize, for in- million dollars authorized for such loans surance or guarantee of loans, a level of con- during the fiscal year 1951 will be disbursed struction costs no higher than that prevail- in approximately equal quarterly instalments. ing on July 1. This means that increases in The Farmers Home Administration also house prices reflecting costs higher than this adopted the level of costs on July 1 as the level may not be included in insured or guar- highest to be recognized for loan purposes anteed mortgages. With some exceptions and reduced the amount of any farm buildand modifications necessary for technical ing loan it will approve. The Administration reasons, each agency also requires that a bor- will now approve a farm building loan only rower applying for insurance or guarantee of if the amount of the loan, together with a loan after July 18 shall make a down pay- other real estate indebtedness of the borment of at least 5 percentage points more rower, does not exceed 95 per cent—rather than was required under the earlier regula- than 100 per cent—of the appraised value tions. Accordingly, for owner-occupants, of the farm. minimum down payments under the Fed- The Home Loan Bank System reduced eral programs now range from approximately from 50 to 30 per cent of the member's line 5 per cent of property value to 25 per cent, of credit the amount which a member instidepending on the program, type of borrower, tution may borrow for the expansion of and type of property. business, and restricted the amount of mort- 936 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CONSTRUCTION ACTIVITY AND MORTGAGE CREDIT gages which a member may sell in any cal- years, and the large amount of credit availendar year to 20 per cent of its holdings at able on easy terms for mortgage lending— the beginning of the year. The System also both with and without Federal guarantees. adopted supervisory policies designed to During the first half of this year, a record maintain members' appraisals no higher than 694,000 new housing units were started, half on July 1, to encourage members to restrict again as many as in the first half of 1949 and lending so that a borrower's total debt against one-fifth more than in the second half of that a property will not exceed 75 per cent of the year. In July the number started was slightly appraised value, to restrain construction lend- above the very high level of May and June. ing, and to encourage shorter maturities and Single-family houses, as shown in the prepayment of mortgages. chart, continue to account for the bulk of all These restrictions apply directly only to units started. About 150,000 of the 568,000 financing arrangements, or commitments for single-family units started in the first half of financings made after the effective dates of this year were started under FHA comthe actions. Construction can continue at a mitments to insure the mortgages, and a high level for several months under commit- somewhat smaller additional number in anments made earlier. ticipation of permanent financing with VA The Public Housing Administration, guaranteed mortgages. The remainder, perwhich administers Federal aid for local low- haps a little more than half of the total, were rent housing programs, limited to not more started under other credit arrangements. than 30,000 the number of units that may In this same period some 450,000 newly be started in the second half of 1950, and the completed single-family houses were sold, of Housing and Home Finance Agency sus- NONFARM DWELLING UNiTS STARTED pended indefinitely all applications for loans under the Housing Act of 1950 for construction of student and faculty housing by educational institutions. Federal and State supervisors of banks and other lending institutions on August 4 issued a joint statement urging all such institutions to exercise special care in their lending and investment activities in order not to add to inflationary pressures. The text of this statement appears on page 947. RECENT RESIDENTIAL CONSTRUCTION AND MORTGAGE LENDING The record level of residential building this year has reflected strong desires of established as well as newly formed families for im- 1948 1949 proved living quarters, continuation of the Department of Labor data. Only new permanent family dwelling units built in nonfarm areas are represented; singleperson accommodations, conversions, trailers, and all temporary high personal incomes and wide distribution structures are excluded. Latest figures shown: for total, July 1950; for breakdown by one-family and other units, June 1950, of liquid assets that have prevailed in recent with breakdown for May and June estimated by Federal Reserve. AUGUST 1950 937 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CONSTRUCTION ACTIVITY AN9 MORTGAGE CREDIT which roughly 50,000 appear to have been slightly, but industrial concerns continued sold without mortgages. About half of the to finance the major share of construction remaining units were sold with insured or expenditures from retained earnings and guaranteed mortgages. other internal sources. Construction of private multi-family units, New loans made on small residential propwhich has been considerably larger than in erties in the first half of 1950, shown in the the first half of last year and about the same table, are estimated at 6.6 billion dollars, as in the second half, has depended to a an increase of 600 million dollars, or onegreater extent on Federal mortgage pro- tenth over the last half of 1949 and more than grams. About 95,000 such units were started one-third over the first half. About 2.4 bilin the first half of this year, more than two- lion dollars appears to have been advanced thirds of them financed with mortgages in- to buyers of new houses, 2.8 billion to buyers sured by the Federal Housing Administra- of old houses, and 1.4 billion to other owners tion under Title VI of the National Housing of 1- to 4-family real estate. Almost two- Act. Authority to accept applications for in- thirds of the credit extended for the purchase surance of mortgages on new multi-family of new houses and about one-third of that units under this provision expired on March for the purchase of old houses was insured by 1, 1950. Although in some large metropoli- the Federal Housing Administration or intan areas, including Chicago, Detroit, San sured or guaranteed by the Veterans Admin- Francisco, and Washington, the number of istration under the Servicemen's Readjustmulti-family units started has been declining ment Act. in recent months, the volume of such starts in the country as a whole could continue MORTGAGE DEBT ON 1- TO 4-FAMILY HOUSES very large for some time under the substan- [In millions of dollars! tial volume of Title VI insurance commit- Apparent Change in Loans ments still outstanding. Loans retire- loans out- out- Period made ments standing standing (during (during • (during (end of As was noted above, construction of Fed- period) period) period) period) erally aided public housing will be limited 1941 3,953 2,953 1,000 19,400 in the second half of 1950 to 30,000 units, 1942 . 3,201 3,382 — 181 19,219 1943 3,252 3,690 -438 18,781 only 1,600 of which had been started by the 1944 . . 3,857 3,860 -3 18,778 1945 . 4,721 4,291 430 19,208 end of July. The bulk of the public housing 1946 9,470 5,109 4,361 23,569 1947 10,657 5,656 5,001 28,570 now under way has been financed, without 1948 10,834 5,953 4,881 33,451 1949P, 10,820 -, 7,090 3,730 37,181 Federal assistance, from State and municipal 1950 (first half)... 6,600 3,681 2,919 40,100 funds and is located in a few States, chiefly New York, Massachusetts, and Connecticut. P Preliminary. NOTE.—Data on outstandings and loans made, 1941-49, from Home Loan Bank Board; first half of 1950 estimated by Federal Reserve. Apparent retirements derived from these figures. RESIDENTIAL MORTGAGE DEBT Lending on residential real estate mort- Residential mortgage debt outstanding has gages during the first half of 1950 was at a increased at a record rate during the past new high level following the resumption of half year as retirement of previously conexpansion in mid-1949. Mortgage lending tracted debt has risen much less rapidly than on farms and on commercial properties such new debt has been written. At the end of as stores and office buildings also increased June outstanding debt on 1- to 4-family 938 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CONSTRUCTION ACTIVITY AND MORTGAGE CREDIT properties, as the table shows, was estimated prepared to buy. The secondary market thus at about 40 billion dollars, an increase of provided has been more important in the about 3 billion since the beginning of the expansion of GI loans than of FHA loans, year, and more than double the amount out- of which the FNMA has never taken a very standing at the end of the war. large proportion. About 16.5 billion dollars of this debt, or The Housing Act of 1950, approved in more than two-fifths, is insured or guaran- April, ended the authority of FNMA to make teed by Federal agencies, VA guarantees pro- commitments, and since May the Associatecting about 8.9 billion of this amount and tion by regulation has required that a loan FHA insurance 7.6 billion. In the months made after March 1, 1950, to be eligible for ahead the amount of guaranteed and insured purchase, must have been held by the lender debt written will be limited by recent Federal for at least two months. It is uncertain, howactions reducing funds available and restrict- ever, when these changes will affect puring terms under which loans may be guaran- chases by the Association, partly because the teed or insured. Association still had outstanding at the end The increase over the past year in the of July about one billion dollars in undisamount of new residential loans insured or bursed commitments. Purchases are likely guaranteed by Federal agencies reflects a fur- to continue large until this backlog is rether sharp rise in GI loans this year, to- duced. Although sales of mortgages held by gether with a continued high level of FHA FNMA have increased markedly in recent financing, as is shown on the chart. The NONFARM MORTGAGE LENDING rapid rise in GI loans since the spring of 1949, MILLIONS OF DOLLARS MILLIONS OF DOLLARS following a year and a half of steady decline, appears to be the result of several factors. A decline during 1949 in yields on alternative investments, particularly United States Government securities, made the 4 per cent rate on loans guaranteed by the VA relatively more attractive to investors; the flow of savings into financial institutions continued large, and the supply of funds for mortgage investment was ample; and lenders increasingly became reconciled to the idea that the 4 per cent rate on GI loans would not soon be raised. Very important, too, was the nature of the market provided by the Federal National Mortgage Association. Until March of this year the Association, by making com- For mortgages under $20,000, data on nonfarm mortgages remitments to buy eligible mortgages, en- corded during month from Home Loan Bank Board; for GI home loans, loans closed under the Servicemen's Readjustment abled mortgage lenders who usually do not Act: October, 1946-date, from Veterans Administration; January-September 1946 estimated by National Housing Agency hold appreciable amounts of mortgages to from records of Veterans Administration; for FHA insured home loans, data on loans insured under sections 203 and 603 make more loans than private investors were of the National Housing Act as reported by Federal Housing Administration. Latest figures shown are for June 1950. AUGUST 1950 939 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CONSTRUCTION ACTIVITY AND MORTGAGE CREDIT months, they are still below purchases, and tion as a whole was only moderately larger holdings have continued to increase. than a year ago. Construction costs, which Holdings of real estate mortgages by both declined somewhat during the spring of financial institutions and noninstitutional 1949 and were fairly stable in the second half lenders have increased sharply since the mid- of that year, have risen steadily this year, dle of 1949. In recent months lending on and in the first six months of 1950 average residential properties by financial institutions costs were at about the same level as a has expanded somewhat more rapidly than year earlier. lending by noninstitutional lenders. Life in- Business construction. The volume of consurance companies continue to hold more struction for business purposes, seasonally real estate mortgages than any other type of adjusted, has risen almost 10 per cent since financial institution, as is shown in the table. winter, reversing the almost continuous de- Savings and loan associations continue to be cline which began in the autumn of 1948. the most important single institutional source In the first half of this year, however, busiof new loans on small residential properties. ness construction was still substantially lower than a year earlier. REAL ESTATE MORTGAGE LOANS HELD BY SELECTED The upturn this spring and summer re- FINANCIAL INSTITUTIONS flected the general strengthening of business [In billions of dollars] demand and was accounted for largely by Total, Life in- Savings Com- increased building of new manufacturing selected surance and mer- Mutual Date insti- com- loan cial savings plants and retail stores. Increased investment tutions panies assns. banks banks in new plant has taken place in both durable 1946—June 30... 23.2 6.8 6.2 5.9 4.3 and nondurable goods industries, including Dec. 31... 25.9 7.2 7.1 7.2 4.4 1947—June 30... 28.6 7.8 7.9 8.3 4.6 especially the automobile, machinery, chemi- Dec. 31... 31.9 8.7 8.9 9.4 4.9 cals, food products, and textile industries. 1948—June 30... 34.9 9.7 9.6 10.2 5.4 Dec. 31... 37.8 10.9 10.3 10.8 5.8 Prior to the Korean outbreak the steel in- 1949—June 30... 39.8 11.8 10.8 11.0 6.2 dustry had announced plans to expand ca- Dee. 31... 42.7 12.9 11.6 1.1.5 6.7 pacity by 6 million tons, involving some addi- 1950—June 30... 46.5 14.1 12.7 12.4 7.3 tional plant construction, before the end of NOTE.—Figures for commercial and mutual savings banks from Federal Deposit Insurance Corporation and Comptroller of Cur- 1952. Recent events may hasten this exrency; savings and loan association figures from Home Loan Bank Board; and life insurance company figures from Institute of Life pansion. Insurance. June 30, 1950 figures for all institutions and June 30 figures for all years for savings and loan associations are estimated The rise in retail store construction has by Federal Reserve. reflected the need for shopping and other NoNRESIDENTIAL CONSTRUCTION commercial facilities in recently developed Since the spring of 1949 the volume of residential areas, as well as the further denew eonstruction, seasonally adjusted, has centralization of commercial activities to been rising steadily, reflecting for the most suburban areas. Other types of commercial part the exceptionally rapid expansion of construction, such as warehouses and office residential construction already discussed. buildings, have been in about the same vol- The volume of private construction in the ume as a year earlier. first half of 1950 was one-fifth larger than Public utility construction, which accounts a year earlier and one-sixth larger than in for about three-fifths of all construction by the second half of 1949. Public construc- private business concerns^ has been increasing 940 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CONSTRUCTION ACTIVITY AND MORTGAGE CREDIT this summer, following a fairly steady decline ance for seasonal influence. Beginning last from a very high level in the spring of 1949. autumn, prices of many materials advanced, The volume this year, however, is still some- and average wholesale prices are now higher what below that of a year ago, largely because than at the peak in 1948. Since the end of of decreases in construction of communica- June this year, inventory buying has intions and railroad facilities; for electric and creased and retail sales of building materials gas companies there has been little change. have been in record volume. Public construction. The postwar volume Employment iri construction is about oneof public construction, while substantial, has tenth larger than a year ago, and wage rates not been large enough to satisfy needs have continued to advance. Average hourly deferred in past years, together with recent earnings in the construction industry have needs generated by large additions of housing risen 6 per cent since last summer, reflecting and business facilities. Expansion in public some increase in overtime. Output per conconstruction this year has been less rapid than struction worker has also continued to inin earlier years. crease. Construction of schools and other educa- Production and supplies of materials. Outtional buildings has increased considerably put of lumber, which increased sharply last and construction of hospitals, chiefly for vet- autumn and then declined more than seasonerans, has also continued to expand. Addi- ally during the winter, rose further this tional schools, however, are still needed in spring and summer to a level higher than at very large volume to provide for the sharply any time since 1929. New orders and shipincreased school population. Construction ments both for immediate use in building of new streets and highways this year, while and for replenishment of distributors' inven- 10 per cent larger than a year ago, is less tories have also been very large, however, and than in the late thirties when there was still have exceeded production throughout the a substantial work relief program under way. first half of this year. Stocks of lumber held Maintenance and repair have accounted for by manufacturers have been reduced cona large share of all the work done on streets siderably below a year ago, but retail stocks and highways since 1945. The need for new have been rising steadily. and improved roads and streets is great. Production of lumber products, including Work in most of these fields as well as in hardwood flooring, millwork, and plywood, other types of public construction, s-uch as has also risen sharply this spring and summer. sewage and water, rivers and harbors, and Stocks of these items in the hands of manunatural resource development, will be af- facturers have been drawn down appreciably fected substantially by the national defense since last summer; hardwood flooring stocks program. have been reduced by about 60 per cent and plywood stocks by about 25 per cent Re- MATERIALS AND LABOR tail stocks of lumber products also appear to In response to the high and rising level of have been reduced. construction activity after the spring of 1949, Output of fabricated metal products, such output of materials and employment in con- as heating apparatus, plumbing supplies, and struction increased, and since then have gen- cast iron soil pipe, has risen considerably this erally continued to expand, after allow- year, following sharp reductions in the first AUGUST 1950 941 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CONSTRUCTION ACTIVITY , AND MORTGAGE CREDIT half of 1949. Shipments of these items contractor quotations for some lumber items, have generally exceeded production in re- such as hardwood flooring and millwork in cent months, and manufacturers' stocks have some major cities, have been greater than the consequently been reduced from the rela- 20 per cent rise indicated by the Bureau of tively high levels reached in mid-1949. Sup- Labor Statistics wholesale price index. plies of cast iron radiation are only about Marked increases in prices of metals have half as large as they were a year ago, and been reflected in the prices of fabricated metal stocks of warm air furnaces, cast iron boil- products used in building. Copper prices are and bathtubs are also considerably more than one-third above their low of last ers smaller than last summer when they were summer, and wholesale prices of plumbing accumulating in the hands of manufacturers. and heating supplies have been rising steadily Supplies of clay products and cement have this spring and summer. fluctuated much less than other construction With supplies of cement and clay products materials during the postwar period. Output generally adequate to meet demands in alof brick, tile, clay sewer pipe, and cement most all areas, cement prices have shown has been fairly stable at high levels since 1947. little change since last fall, while quotations Cement stocks this summer were at about for clay products have risen only 2 per cent the same level as in earlier postwar years, in the last 12 months. following usual seasonal declines from the early spring peak. WHOLESALE PRICES OF BUILDING MATERIALS Prices of materials. Last summer the gen- t935-1939 -100 eral decline in prices of building materials and equipment, which began in the autumn of 1948, came to an end, and since then many prices have been rising steadily; others have shown no increase since the beginning of the year. This summer the area of price advances has widened, and premium prices are once again being offered for materials in limited supply. By the end of July average wholesale prices of building materials had risen 11 per cent from last summer's low point and exceeded the peak reached in the autumn of 1948. Bureau of Labor Statistics indexes converted to 1935-39 base by Federal Reserve. Total includes "paint materials" sub- Prices of lumber have risen most sharply, group not shown separately. "Other" subgroup includes chiefly metal building materials except structural steel; asphalt, as shown in the chart, following a steady de- glass, gravel, and crushed stone; millwork and prepared roofing. Latest figures shown for subgroups are for June 1950; cline for 12 months. Increases in dealer-to- for total, Federal Reserve estimate for July 1950. 942 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENT ON THE DEFENSE PRODUCTION ACT OF 1950* The Defense Production Act of 1950 would carry larger prime contracts. It can also make practical out the steps toward economic preparedness rec- the awarding of more Government contracts, reommended by the President in his message of July quiring unusually large working capital or expan- 19 to the Congress. Because of the responsibilities sion in plant and facilities, directly to relatively which the Congress has placed upon the Board small and medium-size concerns. Without such in the credit and monetary area, we are especially financing, these concerns would not be able to interested in those provisions of the bill relating make a full contribution to defense production. to the guarantee of defense production loans and Finally, where great speed is essential in the perthe regulation of consumer and real estate credit. formance of Government contracts, the mechanism We are, therefore, addressing this statement pri- can serve to expedite the consummation of loans marily to the reasons why we believe that these with a promptness which is not always possible provisions should be promptly enacted as a part under usual procedures. of the broad legislation needed to meet the present The loan guarantee proved to be an eminently situation. successful means of encouraging the extension of private credit for facilitating production under GUARANTEE OF DEFENSE LOANS Government contracts during World War II. The Section 301 of the bill would authorize the guarantee program of that period—the so-called President to reinstitute a guarantee program simi- V-loan program referred to earlier—was set up lar to the V-loan program operated by the Federal under Executive Order of the President in March Reserve System during World War II. The pro- 1942. Under that program, loans for war producposed program would be confined to the guarantee tion were guaranteed by the Armed Services by the national defense procurement agencies of through the agency of the Federal Reserve System. loans made by banks and other financial institu- The twelve regional Federal Reserve Banks and tions to contractors to finance the production of de- twenty-four branches, with experienced personnel fense materials needed by the United States in the and close daily contacts with financial institutions, present emergency. This program is not to be con- afforded an already existing and well-adapted orfused with various proposals advanced in post- ganization for making such guarantees promptly war years for the peacetime guarantee of business available to contractors throughout the country. loans. The Board of Governors in Washington acted as the The financing problems of contractors engaged coordinating agency in the administration of the in defense production, particularly where they are program. small and medium-size, are unique in character. During the course of the V-loan program, bank The loan guarantee mechanism here proposed pro- loans to war contractors, both large and small, vides an effective solution of these problems. Con- amounting to about 10.5 billion dollars were aptracts for essential defense materials often require proved for guarantees by the Armed Services much larger financing by contractors than they through the agency of the Federal Reserve System. are able to command under ordinary financing Over 90 per cent of the number and one-third of practices. It can make possible maximum partici- the amount of these guarantees were on loans to pation by numerous smaller business enterprises in small and medium-size businesses; that is, busithe Government's defense production program, par- nesses with total assets of less than 5 million dollars. ticularly those who do not themselves have direct Notwithstanding the great volume of loans handled, Government contracts but whose work as subconthe program was self-supporting; receipts of the tractors is essential for prompt performance on the Treasury from the program exceeded expenses and losses by 23 million dollars by the end of 1949. * Statement presented by the Board of Governors of the Federal Reserve System to the Committee on Banking Without the program, the production of war mateand Currency of the Senate, and read by Governor R. M. rials would have required more Government finan- Evans to the Committee on Banking and Currency of the House of Representatives, July 25, 1950. cing through direct lending and other means. 943 AUGUST 1950 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENT ON THE DEFENSE PRODUCTION ACT OF 1950 For the reasons indicated, the Board feels that effort, including the materials and manpower necesthe program of guaranteed loans which would be sary to expand our total productive capacity. authorized by Section 301 of the bill would con- The present international situation not only institute an essential part of any plan for expediting creases greatly the Government's demand for the deliveries under defense production contracts. If goods and services of our economy, but at the same the President should see fit again to utilize the time accelerates private demand. These two addi- Federal Reserve System for this loan guarantee tional factors of demand are imposed on a condiprogram, the Board and the Federal Reserve Banks tion of already very high demand, employment, and would immediately direct their facilities toward its prices. Even before the attack by the Communist vigorous and expeditious administration. With North Koreans on June 25, prices were rising and the experience gained by the System under the we were in a potentially inflationary situation. V-loan program during World War II and with Because of developments of the past few weeks, it personnel both at the Board and at the regional is imperative that steps be taken to reduce or defer Reserve Banks who participated in the previous civilian demands and to lessen inflationary presoperations, it would be possible to develop and put sures. into effect within a very short time the new program The state of public psychology has already stimof guaranteed loans contemplated by this bill. ulated consumer buying and the accumulation of business inventories. In the week ending July 15 REGULATION OF CONSUMER AND REAL ESTATE CREDIT department store sales rose to a level 24 per cent Section 401 of the bill authorizes the President above a year ago, with increases ranging from 12 to regulate consumer and real estate credit. Under per cent in the Richmond District to 39 per cent such authority minimum down payments on pur- in the Dallas District. Sales of automobiles and chases, maximum maturities, and other standards houses have risen to record levels. appropriate to limit credit extension could be pre- Prices of 28 basic commodities, which had risen scribed. Section 402 of the bill would strengthen 7 per cent from January 3 of this year to June 23, the President's authority to curtail Federal financ- advanced sharply after the invasion of South ing programs in the housing field when the na- Korea—10 per cent in one month. The all-comtional interest so requires. We regard these as modity index of wholesale prices, which had risen important provisions of the proposed legislation. 4 per cent by June 20, has since jumped 3 per cent Consumer credit regulations were administered further. Consumer prices began to rise in March by the Board of Governors from September 1941 and recently the advance has been further accelthrough October 1947 and again from September erated. Consumer prices are now higher than at 1948 through June 1949. any other time, except for a short period in the Such regulations as might be necessary in the latter part of 1948. real estate credit field under Section 401 would have Unless prompt action is taken, the country will to be designed to meet the special needs of this face serious problems of gray markets and spiralarea. They would have the general purpose of ing prices. Not only would this situation upset supporting and supplementing the President's pro- our economic balance but it would add to the difgram of cutting back on Federally guaranteed and ficulty in procuring the manpower and materials insured mortgage credit. necessary for the military effort. Authority for restrictions on consumer and real One of the major factors in the expansion of estate credit should be provided for use to the private demand is the growth of mortgage and extent necessary as an essential part of the program consumer credit. Since the end of 1945, as shown for conserving resources for defense and protect- on the accompanying chart, consumer credit has ing the economy against inflation. This authority been increasing by about 3 billion dollars a year. would help to prevent current and potential de- The increase in the past 12 months was 3.5 billion mand from exceeding supply in the areas affected. dollars and in May was about 500 million, the Accordingly, it would help to reduce inflationary largest increase on record for that month. This pressure upon prices in these areas. It would help was before the Korean crisis precipitated the presto make materials and manpower more readily ent buying spree. available for the national defense and military The most important segment of total consumer 944 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENT ON THE DEFENSE PRODUCTION ACT OF 19SO credit is instalment credit, especially for the pur- NONFARM MORTGAGE DEBT chase of durable goods. During the past year in- BILLIONS OF DOLLARS, HOME LOAN BANK AN BO N A U R A D L LY ESTIMATES BILLIONS OF DOLLARS stalment credit rose nearly 3 billion dollars and accounted for 83 per cent of the increase in total consumer credit. The role which instalment credit has been playing in the growth of demand is illustrated not only in the amount of the expansion but also by the relaxation in the terms under which such credit is extended. Reports of declines in the required down payment are widespread and the average period of repayment has - TOTAL OUTSTANDifiQ j DEC. 31 FIGURES lengthened progressively. CONSUMEREDCRED TJOJJTSTANDNG \ • . 'f ONSWWIU H FIGURES ^ n ji f J 1 / Ii CON NEW LOANS MADE J " A y \ •' V J . i ii 1940 1945 1950 / "^"ANNUAL RATE FOR JAN -JUNE •£— ACCC Expansion of bank loans for such purposes adds .—-^ MENT to the growth of bank deposits. Bank holdings of both consumer instalment paper and mortgage •1 SE paper are rising rapidly and are thus adding to the The current record rate of residential construc- total supply of money which is already so large tion involves the greatest increase in mortgage in relation to current output as to provide a concredit which the country has ever experienced. stant inflationary threat. Restriction of consumer Home mortgages made by all lenders in the first and mortgage credit, therefore, would help to keep half of 1950 amounted to about 6.6 billion dollars within bounds the quantity of money and other or an annual rate of 13 billion dollars, as shown on liquid assets in the hands of the public. the following chart. In normal times consumer and mortgage credit The net increase in mortgage debt outstanding play a very important and desirable role in our during the first half of 1950 (after regular amorti- economic system. Without such credit widespread zation and other repayments) was about 3 billion home ownership and mass distribution of durable dollars, bringing the total outstanding on June 30 goods would not have been possible. If our mass to about 40 billion. The home mortgage debt of production economy is to sustain its expansive this country has more than doubled since the end character in normal times, we will need to have of the war. expansion of mortgage and consumer financing. Expansion of consumer and mortgage credit con- However, in order that such financing may be of tributes not only to the current demand for labor greatest value it is important that it be used most and materials that go into housing and durable fully when industry is in a position to meet the consumer goods, but also augments the demand for demands created. When industry is already ocall other goods. The purchasing power created cupied to capacity and important resources must by consumer and mortgage credit enters the income be diverted to the defense effort, the creation of stream where it adds to the competition for goods new credit cannot increase the general availability including materials vital to the national defense. of goods. On the contrary it contributes to infla- Growth of consumer and mortgage credit in- tion and economic disorganization. If mortgage creases the volume of money and other liquid assets. and consumer credit is appropriately limited now AUGUST 1950 945 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENT ON THE DEFENSE PRODUCTION ACT OF 19SO it will be in a better position to play a necessary gave us excellent cooperation. Various trade asand desirable role whenever adequate productive sociations took an active part in acquainting busicapacity is once more available to meet freely con- nessmen and the public with credit regulations, and sumer demands. they cooperated to the fullest in helping to assemble Regulation of consumer credit should and can needed technical information. Large and small be flexible. The previous regulations were tailored financing institutions responded generously to our to fit prevailing conditions, with coverage and terms requests for information and advice. State and suited to changing circumstances. To illustrate, in Federal supervisory authorities also gave us valthe fall of 1941 the regulation applied only to in- uable assistance during the course of their regular stalment credit relating for the most part to con- work. sumer durable goods of substantial unit cost—auto- With respect to real estate credit, there should mobiles, refrigerators, and the like. When the be an equally practicable approach. The full cocountry entered the war the regulation was en- operation of leaders in the mortgage financing field larged in scope in keeping with the general mobili- should be enlisted to design a regulation, similarly zation which took place. It covered practically all flexible and adapted to the changing economic situconsumer durable and soft goods and instalment, ation. single payment, and charge account credit. After The commercial banks play a strategic role in the war, late in 1946, the scope of the regulation the real estate credit market. Any regulation of was made even more limited than when it was such credit will have significant effects on genoriginally applied. eral credit conditions in which the Federal Re- The decentralized character of Federal Reserve serve System is primarily interested. System operations proved well adapted to the ad- The need to strengthen our economic defenses ministration of consumer credit regulation as well is no less than the need to strengthen our military as to the V-loan guarantee program. Through defenses. We cannot afford to risk disrupting our twelve Federal Reserve Banks and twenty-four our economy by leaving it unduly exposed to the branches, located in every region of the country, inflationary pressures that are inherent in large we were able to tap quickly and effectively the defense expenditures. Prompt action is imperative. informed opinions of small as well as large busi- As the President said in his message on the present ness. situation: "We must be sure to take the steps that In our experience with the administration of are necessary now, or we shall surely be required consumer credit regulation, the business community to take much more drastic steps later on." 946 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DEFENSE LOAN POLICY An Announcement Adopted Jointly by National and State Supervisors of Banks and Other Lending Institutions The President of the United States in his message to the Congress on July 19, 1950, pointed out that as a further important safeguard against inflation we shall need to restrain credit expansion, and that if we are to, be successful there must be sensible and restrained action by businessmen, laborers, farmers, and consumers. The need for the exercise of restraint is all-embracing. It applies alike to governmental agencies, national and State, as well as to private institutions and individuals. Accordingly, the Board of Governors of the Federal Reserve System, the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the Home Loan Bank Board, and the National Association of Supervisors of State Banks urge that banks and all other institutions engaged in extending credit exercise special care in their lending and investment activities. The banks and other lending institutions of the country have demonstrated by their loyal response at critical periods in the past that they will stand united with their Government in the situation that now confronts us. Officials of associations of lending institutions have called upon banks and other financial institutions to decline to make loans to business or consumers which might be used for speculative purposes or otherwise interfere with defense requirements. The supervisory authorities strongly join in this request. All officials of the supervisory agencies will be glad to confer with the officers of banks and other financial institutions, to counsel with them regarding this program of credit restraint. As pointed out by President Truman, an abnormally high civilian demand for goods along with an increased need for military materials is creating a strong upward pressure on prices. A continuation of the rapid growth of credit resulting from consumer demand for houses and other goods and speculative accumulation of inventories by business would add to inflationary pressures and seriously handicap the necessary expansion of military production. Therefore, lenders should carefully analyze all loan applications and avoid making loans which would have these adverse effects. August 4, 1950. BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM COMPTROLLER OF THE CURRENCY FEDERAL DEPOSIT INSURANCE CORPORATION HOME LOAN BANK BOARD NATIONAL ASSOCIATION OF SUPERVISORS OF STATE BANKS AUGUST 1950 947 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1950. SURVEY OF CONSUMER FINANCES PART III. Distribution of Consumer Income in 1949 1 Interruption in late 1948 and the first half of 1949 of consumer income in 1949 was slightly below of the extended postwar rise in economic activity 1948. Since the number of consumer units in the and prices was accompanied by only a slight de- population increased, the decline in average income cline in total income of consumers. While aggre- was more than proportional to the decline in total gate consumer income remained at very high levels, income. For the first time since the end of the war, readjustments during the year had varying effects there was an increase in the proportion of the popuon the incomes of different groups in the popula- lation with incomes of less than $2,000 and a detion. Information concerning the effect of these crease in the proportion with incomes between changes on the distribution of income among major $2,000 and $4,999. population groups and on levels of money income Those hardest hit by declines in income were the in 1949 is presented in this article.2 entrepreneurial groups—spending units headed by SUMMARY farm operators and by managerial and self-employed In the first half of 1949 increased unemployment persons. The incomes of other occupational groups and lowered levels of income for a substantial part were less seriously affected, although there were of the population accompanied declines in produc- many individuals in each group with substantial tion. The incomes of many persons who remained income declines. Despite the decline in total and employed were affected by less steady work or by average incomes, one and one-half times as manya reduction in the number of hours worked. consumers reported increases in income as de- Farm income declined as a result of falling prices creases. This factor, in conjunction with the unand unincorporated business income turned down. diminished rate of expenditure for major durable Increased business activity in the second half of goods by the occupational groups whose incomes the year tended to raise consumer incomes (as were most seriously reduced, helps to account for has been discussed in Part I of this series) and the maintenance of total consumer expenditures in to reduce the volume of unemployment. How- 1949 in the face of a slightly lower level of total ever, the upturn in the second half was not sufficient consumer income. to offset the decline in the early part of the year. Increases in income in 1949 were obtained some- Farm prices continued to drift downward for most 2 Data are based on the results of about 3,500 interviews of the year. taken in 66 sampling areas throughout the nation. The Reflecting these readjustments, the total amount sample is representative of the entire population of the United States residing in private households. The following groups ^"This is the third in a series o£ articles presenting the are omitted: (1) members pf the armed forces and civilians results of the 1950 Survey of Consumer Finances sponsored Irving at military reservations; (2) residents in hospitals and by the Board of Governors of the Federal Reserve System in religious, educational, and penal institutions; and (3) the and conducted by the Survey Research Center of the Univer- floating population, that is, people living in hotels, large sity of Michigan. The first article in the series appeared in boarding houses, and tourist camps. The interview unit of the June BULLETIN and covered the general financial position the survey is the spending unit, defined as all persons living and economic outlook of consumers. The second article, in the same dwelling and belonging to the same family who devoted to durable goods expenditures in 1949 and buying pool their incomes to meet their major expenses. plans for 1950, appeared in the July BULLETIN, as did a spe- The limitations of survey data outlined in the June 1950 cial article on the methods of the surveys. Subsequent issues BULLETIN and in the discussion of methods presented in the of the BULLETIN will contain articles analyzing changes in July BULLETIN .are applicable to the information presented in consumer saving patterns and in holdings of liquid and this article. Survey findings approximate the true order of nonliquid assets. magnitude of data but do not represent exact values. Varia- The present article was prepared by Irving Schweiger of tions from the true values may be introduced by chance the Consumer Credit and Finances Section of the Board's fluctuations in the particular sample of interviews, by errors Division of Research and Statistics. The author has neces- in reporting on the part of those interviewed, by differences sarily maintained a close working relationship with the staff in interpretation by either respondents or interviewers, and of the Survey Research Center at all stages of his work and by methods used in processing data. Only the first of these— in his analysis of survey tabulations has had the benefit of sampling error—can be measured statistically. It should be many suggestions from the Center's staff, particularly John B. kept in mind that the other sources of error may be of equal Lansing, James K. Dent, and E. Scott Maynes. importance to the accuracy of survey results. 948 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1950 SURVEY OF CONSUMER FINANCES what more frequently and decreases somewhat less TABILE 1 frequently by consumers who had been at the lower INCOME GROUPING OF SPENDING UNITS AND MONEY INCOME end of the income scale in 1948 than by those who RECEIVED, 1949, 1948, AND 1947 x had been at the upper end. This continued the [Percentage distribution] pattern of change between 1947 and 1948, with a 1949 1948 1947 somewhat less pronounced differential in favor of Annual money the lower income groups. bef i o n r c e o m ta e xes Spend- Total Spend- Total Spend- Total The pattern of income changes from 1947 to u i n n i g ts i m nc o o n m ey e u i n n i g ts i m nc o o n m ey e u i n n i g ts i m nc o o n m ey e 1948 apparently resulted in a reduction in the proportion of total income going to the highest tenth of Under $1,000 14 2 12 2. 14 2 $l,000-$l,999 19 9 18 8 22 10 the population when ranked according to income. $2,000-$2,999 21 16 23 16 23 17 $3,000-$3,999 19 19 20 20 17 18 Continuation in 1949 of this general pattern of in- $4,000-$4,999 11 15 12 15 10 13 $5,000-$7,499 11 19 10 17 9 16 come change appears to have resulted in a further $7,500-$9,999....... 2 } 20 2 } 2 reduction in this proportion. The data from four $10,000 and over. . . . 3 3 22 3 surveys, each covering a year of the postwar period All income groups. 100 100 100 100 100 100 1946-49, indicate that the share of income received Median income 2. . . . $2,700 $2,840 $2,530 Mean income 3....... $3,270 $3,450 $3,290 by the highest tenth of the population was greatest in 1947, following the lifting of most war- r Revised. 1 Income data for each year are based on interviews during time controls and the onset of inflationary rises January, February, and early March of the following year. in prices and incomes. By 1949, this share was 2 The median amount is that of the middle spending unit when all units are ranked by size of income. equal to or slightly lower than it had been in 3 The mean amount is the average obtained by dividing aggregate income by the number of spending units. 1946 and smaller than is indicated for 1941 by data from other sources. The decline in total money income in 1949, the first in the postwar period, was accompanied by an increase in the relative frequency of low-income LEVELS OF INCOME spending units. After having fallen from 40 per Reflecting the economic readjustments in 1949, cent in 1946 to 30 per cent in 1948, the proportion total consumer money income before taxes declined of units with incomes of less than $2,000 rose to slightly from the 1948 level, according to both sur- 33 per cent in 1949. The number with negative vey data and Department of Commerce estimates. incomes due to business or farm losses rose from This was the first decline in the postwar period. At negligible frequencies in previous years to about 1 the same time, the number of consumer spending per cent of the consumer unit population in 1949. units in the population increased by about 3 per Some decline occurred in the relative frequency of cent. The combination of these factors resulted in units at intermediate income levels (between $2,000 a noticeable decline in the average amount of con- and $4,999) while little change was noted for higher sumer income per spending unit. The median income levels ($5,000 or more), as is shown in the (middlemost) income of consumer spending units chart on the following page. slipped to $2,700 in 1949 from $2,840 in the previous In terms of number of units, roughly 17 million year. Mean income (arithmetic average), which is spending units received incomes of less than $2,000 subject to somewhat greater sampling variations, in 1949, approximately 2 million more than in 1948 declined from $3,450 to $3,270 (see Table 1) Not- but still about 1.5 million fewer than in 1946. withstanding the decline, money incomes still aver- About 8.5 million units had incomes of $5,000 or aged higher in 1949 than in 1947 or 1946, when the more, which was approximately the same as in median income was estimated to be $2,530 and 1948 and nearly double the number at this income $2,300 respectively. Changes in consumer prices in level in 1946. this four-year period, however, as measured by the As in previous years, the largest average income Department of Labor, roughly matched the rise and was received by the group of spending units headed fall in median money income. Accordingly, it by managerial and self-employed persons (median would appear that there has been little change in $4,500, mean $5,630). As shown in Table 2, proreal income for the middlemost spending unit in fessional and semi-professional persons followed this period. (J4,000-$5,350); next came skilled and semi- AUGUST 1950 949 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1950 SURVEY OF CONSUMER FINANCES DISTRIBUTION OF SPENDING UNITS farmers at the lower end of the income scale, which BY INCOME GROUPS, 1949, 1948, 1947. AND (946 results in a low middlemost income. The substantial number with high incomes ($5,000 or more), on the other hand, has a considerable effect in raising the arithmetic average for the entire group. It should be noted that money income only is being considered here. Most farm operators also have a substantial amount of nonmoney income, such as food produced and consumed on the farm. Their reported incomes, which refer solely to money incomes, are therefore not fully comparable with those of other occupational groups. CHANGES IN INCOME FROM 1948 TO 1949 UNDER $2,000 To this point, discussion has centered on the decline in the general level of income in 1949. skilled workers ($3,200-$3,350); and clerical and This, however, tells only part of the story. A balsales personnel ($2,800-$3,260). The lowest in- anced appraisal of income movements from one comes, on the average, were received by unskilled period to another requires more than aggregates and service workers ($2,100-$2,410) and farm and averages for the entire population. operators ($l,500-$2,570). The wide divergence Declines in income in 1949 were concentrated between the median and mean income of farm among a relatively small part of the population, operators is evidence of the heavy concentration of being reported by only 25 per cent of all units. TABLE 2 INCOME GROUPING OF SPENDING UNITS WITHIN DIFFERENT OCCUPATIONAL GROUPS, 1949 AND 1948 * [Percentage distribution] Professional Managerial Clerical Skilled Unskilled Annual money income p a ro n f d e s £ s e i m o i n - al e a m nd p lo se y l e f d - p a e n r d s o s n a n le e s l sem a is n k d illed se a r n v d ice ope F r a a r t m ors 2 before taxes 1949 1948 1949 1948 1949 1948 1949 1948 1949 1948 1949 1948 Under $1,000., 3 3 5 5 3 3 3 2 19 14 36 30 $l,000-$l,999 9 10 11 11 22 18 11 27 31 22 23 $2 000-$2,999 . . 15 16 12 13 28 30 26 26 30 31 15 17 $3,000-$3,999 22 20 15 11 17 24 30 33 17 17 9 9 $4 000-$4,999 . • 15 17 14 13 14 14 17 4 5 4 5 $5 000-$ 7 499 19 16 24 25 13 9 12 11 3 2 6 11 $7,500 and over 17 18 19 22 3 2 1 1 8 5 All income groups 100 100 100 100 100 100 100 100 100 100 100 100 Median income. .... . $4,000 $4,000 $4,500 $4,500 $2,800 $3,000 $3,200 $3,300 $2,100 $2,100 $1,500 $1,800 Ivtean income $5,350 $5,140 $5,630 $6,300 $3,260 $3,350 $3,350 $3,470 $2,407 $2,310 $2,570 $2,690 Number of cases 287 293 466 470 486 495 895 886 344 427 410 430 r Revised. 1 Income data for each year are based on interviews during January, February, and early March of the following year. Because of the small number of cases in the various occupational groups and also because of some differences in the coding by occupations between the two years, these distributions should be considered as approximations only and as very rough guides to general shifts in the distribution of income between 1948 and 1949. All the occupational groupings are in terms of the occupation of the head of the spending unit. For comparable 1947 and 1946 data, see June 1948 Federal Reserve BULLETIN, Table 7, p. 656; for 1945 income data, see July 1947 BULLE- TIN, Table 2, p. 792. 2 As explained in the text, income distribution for farm operators is not directly comparable with the distribution for other groups because of the large amount of nonmoney income that farmers produce for their own consumption. 3 Less than one-half of 1 per cent. NOTE.—The "number of cases" shown in this and in subsequent tables represents the actual number of spending units falling in each cell. Because the survey oversamples certain groups and corrects for the oversampling by the use of weights, the unweighted number of spending units in a cell does not represent the same proportion of the total sample as the weighted proportion. For example, spending units with incomes of $5,000 or more in 1949 were 15.8 per cent of the weighted sample, but there were 706 such spending units which, on an unweighted basis, amounted to 20.1 per cent of the 3,512 spending units in the sample. Tables based on entire samples do not state the number of cases, which approximates 3,500 respondents for the annual surveys and about half that for the midyear surveys. For a detailed description of the sampling methods, see "Methods of the Survey of Consumer Finances," July 1950 BULLETIN, pp . 795-809. 950 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1950 SURVEY OF CONSUMER FINANCES The incomes of the majority of the population large as in the reconversion period between 1945 were unchanged or increased. Compared with a and 1946. A greater frequency of increases than situation in which an over-all decline in income decreases is, of course, consistent with a decline resulted from a loss in income by most spending in total income, if the increases are smaller in size units in the population, the distribution of declines than the decreases. This general relationship apin 1949 tended to minimize curtailment or post- pears to have been true for the consumer spending ponement of buying, particularly of expensive items units covered by the 1950 Survey of Consumer such as automobiles and refrigerators. Finances. It should be noted that in every survey Distribution of increases and decreases. Although the frequency of decreases in income is probably both aggregate income and average consumer in- somewhat understated inasmuch as persons who had come before taxes were lower in 1949 than in the died, entered the armed services, or otherwise left preceding year, less than 3 in every 10 spending the population covered by the survey in a given units reported declines in income. Many of the year are not included in the next year's survey. declines, however, were quite large. Another 3 in Changes in income for various groups. Age groups. 10 had the same income in both years and 4 in 10 The frequency of increases in income between obtained larger incomes in 1949.3 1948 and 1949 was greatest among young con- It is significant that income declines in 1949 sumer spending units (those headed by persons were not only confined to a relatively small part of from 18 to 24 years of age) and less frequent at the population but were outnumbered by increases each older age group, as can be seen in Table 3. in income. This finding helps to explain the con- This pattern was similar to those found in previous tinuation of a very high level of consumer expendi- surveys. Rises in income substantially outnumbered tures in 1949 despite a decline in aggregate income. declines for consumers less than 45 years of age, Consumers whose incomes had risen tended to while increases and decreases were about equally maintain or expand their purchases, especially of numerous among consumers 45 or more years of major durable goods. In addition, although a age. The large number of income increases for larger proportion of farm operators than of any the younger group and the high rate of family other group experienced income declines, the group formation and growth in this group were unas a whole not only maintained their purchases of doubtedly major elements in the considerably major household items but also sharply increased higher frequency of durable goods purchases by their purchases of automobiles. Special factors in this group. the maintenance of expenditures by farmers were Occupational groups. Each of the major occuthe greater availability of new cars in farm areas, pational groups reported fewer increases in annual partly due to revision of manufacturer's marketing income between 1948 and 1949 than between 1947 quotas; the relatively recent extension of rural elec- and 1948 and, except for the professionals, a greater trification to large groups of farmers which fostered number of declines. As in previous years, the 1950 demand for household appliances; continued large survey indicated that increases were most frequent holdings of liquid assets; the assurance afforded by and decreases least frequent among professional and the Federal price support program; and the fact semi-professional persons and clerical and sales that farm incomes, though down from the all-time personnel. In these groups, increases were from peak of 1948, were still high relative to prewar years. three to four times as frequent as declines. Also, The number of consumer spending units who as in previous years, entrepreneurial types—farm received higher incomes in 1949 compared with the operators and managerial and self-employed persons preceding year—20 million—was smaller than —were at the opposite end of the scale. They had in any previous year-to-year comparison in the the largest proportion of decreases and the smallest postwar period. On the other hand, the number proportion of increases in income of the major occuwith decreases in income—nearly 13 million—was pational groups. Farm operators fared worst of all. larger than in any year since 1946 and nearly as For the first time in the postwar period, a major occupational group—farmers—experienced more 8 It should be kept in mind that data on income change declines than increases in money income. Many rely upon the respondents' recollection of their incomes for of the declines were substantial; 1 in every 4 farm a period covering two years and are therefore subject to considerable memory error. operators reported his income to be at least 25 per AUGUST 1950 951 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1950 SURVEY OF CONSUMER FINANCES TABLE 3 INCOME CHANGES FOR SPENDING UNITS IN VARIOUS OCCUPATIONAL AND AGE GROUPS 1 1948 TO 1949 AND 1947 TO 1948 [Percentage distribution of spending units within specified groups] Change n annualmoney income before taxes Characteristic Number Income larger Income smaller of of group cases All No sub- Not units Total c 2 e 5 n B t p y e o r r S w o h m a e t - s c t h a a n n ti g a e l Total S w o h m a e t - c 2 e 5 n B t p y e o r r t a a s i c n e e r d more more All spending units: 1948-49 3,512 100 39 16 23 29 25 15 10 7 1947-48 3,510 100 50 19 31 27 19 12 .7 4 Occupation of head of spending unit: Professional and semiprofessional— 1948-49 287 100 56 19 37 27 12 8 4 5 1947-48. . . 293 100 59 19 40 23 14 11 3 4 Managerial and self-employed— 1948-49 466 100 37 15 22 27 27 19 8 9 1947-48 * •. 470 100 46 22 24 30 20 14 6 4 Clerical and sales personnel— 1948-49 486 100 50 25 25 30 16 11 5 4 1947-48 . . ..... 495 100 60 22 38 25 13 9 4 2 Skilled and semiskilled— 1948-49 894 100 44 15 29 25 25 19 6 6 1947-48 886 100 54 20 34 26 16 12 4 4 Unskilled and service— 1948-49 , 344 100 39 16 23 32 22 14 8 7 1947-48 427 100 54 20 34 26 16 11 5 4 Farm operators— 1948-49 410 100 30 15 15 19 46 20 26 5 1947-48 430 100 45 21 24 22 27 17 IP 6 Age of head of spending unit: 18-24 years— 1948-49 342 100 62 41 21 14 19 11 8 5 1947-48. 343 100 72 38 34 12 13 9 4 3 25-34 years— 1948-49 779 100 48 20 28 21 24 14 10 7 1947-48 717 100 60 25 35 20 16 11 5 4 35-44 years— 1948-49 777 100 40 13 27 26 28 17 11 6 1947-48 . . 793 100 48 18 30 29 21 15 2 45-54 years— 1948-49 670 100 33 10 23 31 29 18 11 7 1947-48 739 100 50 18 32 29 17 11 6 4 55-64 years— 1948-49 495 100 31 10 21 34 29 17 12 6 1947-48 518 100 44 13 31 31 20 13 7 5 65 years or over— 1948-49 419 100 19 7 12 51 22 14 8 8 1947-48 388 100 28 8 20 43 21 11 10 8 1 Based on changes in amount of annual income received as reported by spending units early in 1950 (fifth survey) and early in 1949 (fourth survey). cent smaller in 1949 than in the previous year. the income increases of employed persons in each Although unskilled as well as skilled and semi- occupation were explained in this manner. Other skilled workers had considerably fewer increases reasons frequently given were transfer to a better and more cutbacks in income between 1948 and paying job, steadier work or more overtime, and 1949 than in previous year-to-year comparisons, they the employment of one or more additional members reported nearly twice as many boosts in income as of the spending unit. Declines in income among o>ts. unskilled and also skilled and semiskilled wage Persons who were not self-employed most fre- earners were due, in about two-thirds of the cases, quently gave increases in wage rates or in salary to less steady employment or to less overtime. scales as the explanation of a higher rate of current Cuts in wage rates were also mentioned by a few earnings in early 1950 than a year earlier.4 As in members of these two occupational groups. The previous years, from one-half to two-thirds of necessity of taking another job at lower pay was mentioned frequently as a cause of reduced income 4 This compares the rate of earnings at time of survey with by unskilled workers but not by other groups. that of a year earlier. These data are related to but not The extent to which heads of spending units identical with a comparison of annual incomes. 952 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1950 SURVEY OF CONSUMER FINANCES TABLE 4 PERIOD OF EMPLOYMENT OF SPENDING UNITS IN VARIOUS OCCUPATIONAL GROUPS, 1949 * Percentage distribution of spending units in each group Number of months of employment in 1949 Professional Managerial Clerical Skilled Unskilled and semi- and self- and sales and semi- and Unemployed2 professional employed personnel skilled service None (unemployed all year) (*) 1 15 i •i 2 5 3-4 .. . 3 (3) 2 2 4 12 5-6 . .. 3 (3) 4 4 8 14 7-8.... . .. 3 4 6 8 18 9-10 . . . .. 10 6 14 13 15 11-12 64 29 80 71 57 8 Not applicable ^ - 15 67 2 3 10 Not ascertained., '......• 2 2 1 2 4 3 All cases 100 100 100 100 100 100 Number of cases . 287 466 486 895 344 187 1 Number of months of employment in 1949 of head of spending unit or chief income earner. 2 Unemployed at time of survey in early 1950. Does not include retired persons, students, or housewives. 3 Less than one-half of 1 per cent. 4 Self-employed. obtained less than a full year's employment in 1948, the data are somewhat less representative 1949 is indicated by the survey rinding that of for that year than for 1949. those in the major occupational groupings who When the preceding year's income is used as the were not self-employed, only about 7 in every 10 starting point, it is found that consumers at the worked at least 11 months during 1949. Seasonal factors and adjustments in business activity con- TABLE 5 tributed heavily to this. Some (less than 5 per cent) persons heading spending units were not in INCOME CHANGES FROM 1948 TO 1949 RELATED TO the labor market during all of 1949 and thus could INCOMES OF SPENDING UNITS IN YEAR BEFORE CHANGES1 not have worked for a full year. Clerical and sales personnel and salaried managerial, professional and Percentage distribution of spending units within 1948 income groups semi-professional persons worked most steadily, Change in annual money income w m i i t n h i m a u pp m r o o x f im 1 a 1 t e m ly o n 8 th i s n . e T ve h r e y n 1 e 0 xt e b m es p t l o r y e e c d o rd fo w r a a s b 1 e 9 f 4 o 8 r e t o t a 1 x 9 e 4 s 9 * U $1 n , d 0 e 0 r 0 $ $ 1 1 , , 0 9 0 9 0 9 -$ $ 2 2 , , 0 9 0 9 0 9 -$ $ 3 3 , , 0 9 0 9 0 9 -$ $ 4 4 , , 0 9 0 9 0 9 -$ $ 5 7 , , 0 4 0 9 0 9 -$ o 7 a v , n 5 e d 0 r 0 about 7 in every 10 in the skilled and semiskilled Income larger.... 49 43 44 40 37 37 31 group, which was followed by about 6 in every 10 By 25 per cent in the unskilled and service worker group (see Som or e w m h o a r t e 3 1 9 0 H 19 3 1 1 3 8 1 0 0 2 1 5 2 2 8 9 2 8 3 Table 4). Approximately 5 in every 10 of the wage No substantial earners who were unemployed at the time of the change 28 30 26 28 27 29 34 survey said they had worked for 6 months or less Income smaller 18 23 27 30 34 31 33 during 1949, Somewhat 10 12 17 19 20 u 17 Income groups. The survey also provides data on By o r 2 m 5 o p re er cent 8 11 10 11 u 10 16 changes in income for consumer spending units Not ascertained.. 5 4 3 2 2 3 2 at different income levels. For some purposes it All cases 100 100 100 100 100 100 100 is best to make such analysis on the basis of income Number of cases.. 479 604 672 615 397 437 269 level before the change, and for others, income level after the change. Respondents were asked 1 The distribution of income changes within the various income groups is based on reports of nine-tenths of the spending units at the time of the survey in early 1950 to report interviewed early in 1950 (fifth survey) concerning 1948 incomes (either in dollar amounts or by income class) and changes in their incomes in 1949 and also in 1948. Because annual incomes from 1948 to 1949. The 1948 income of one-tenth of all spending units could not be determined in the 1950 survey. of the memory factor, the data are less reliable for Data in this table are not strictly comparable with similar data regarding 1947 income obtained early in 1949 (fourth survey) and 1948 than for 1949. Also, since about 1 unit in published in the July 1949 BULLETIN, because the earlier data every 10 could not furnish this information for were obtained from only two-thirds of the spending units in the 1949 survey. AUGUST 1950 953 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1950 SURVEY OF CONSUMER FINANCES lower end of the income scale in 1948 received in- This reversal of pattern results, in major part, creases in income during 1949 somewhat more from the movement of consumers from one income frequently than did units higher in the income group to another. The considerable extent of this scale (see Table 5). The increases were also larger movement between 1948 and 1949 is shown in proportionately for the lower income units. De- Table 7. Except for the lowest income group creases in income in 1949, on the other hand, were (under $1,000) and for the highest ($7,500 or relatively more frequent and tended to be larger for more), no more than 1 in every 2 units was in the units who had been at the higher end of the income same income group in both years. The effect scale in 1948. of income rises in bringing consumer units into Although lower income units appear to have fared higher income groups is shown by the fact that of somewhat better between 1948 and 1949 than the units who received incomes of between $5,000 those higher in the income range, the extent to and $7,499 in 1949, more than 3 in 10 reported which they fared better was not as great as be- that they had been at lower income levels in 1948. tween 1947 and 1948. In this earlier period, Conversely, at the bottom of the income scale, about income groups below $4,000 had substantially more 2 in every 10 units with incomes of less than $1,000 increases in income and fewer decreases than did in 1949 reported that they had been at higher ingroups above this level. come levels in the previous year. When changes in income are related to the level Substantial changes in individual consumer inof income after change (1949 income), the pattern come within one year were also found between 1947 is the reverse of that obtained for income before and 1948 in the preceding survey. They indicate change (1948 income), which has been discussed that an income distribution for the same consumer above. As is shown in Table 6, units at higher in- population based on the average incomes received come levels after the change reported considerably by these consumers over several years would be more increases and fewer decreases than those at considerably different from that based on one year lower levels. alone. Such an income distribution would prob- % TABLE 6 INCOME CHANGES RELATED TO INCOMES IN YEAR AFTER CHANGES * 1948 TO 1949 AND 1947 TO 1948 Percentage distribution of spending units within income groups All spend- Under $1,000- $2,000- $3,000- $4,000- $5,000- $7,500 Change in annual money ing units $1,000 $1,999 $2,999 $3,999 $4,999 $7,499 and over income before taxes 1948 1947 1948 1947 1948 1947 1948 1947 1948 1947 1948 1947 1948 1947 1948 1947 to to to to to to to to to to to to to to to to 19492 194g« 19492 19483 I9492 19483 19492 1948s 19492 1948319492 19483 19492 19483 19492 19483 Income larger than in preceding year ........... 39 51 23 36 35 45 39 51 44 57 48 59 49 55 46 54 By 25 j)6V cent or more 16 20 16 14 18 17 14 20 12 22 16 21 18 20 20 27 Somewhat 23 31 7 22 17 28 25 31 32 35 32 38 31 35 26 27 No substantial change .... 29 27 32 32 29 29 27 29 30 24 26 24 27 27 33 26 Income smaller than in preceding year 25 18 36 26 29 22 29 16 22 17 20 13 17 14 16 14 Somewhat 15 12 12 11 13 12 21 12 15 13 18 11 13 10 11 11 B>y 25 Per cent or more. 10 6 24 15 16 10 8 4 7 4 2 2 4 4 5 3 Not ascertained 7 4 9 6 7 4 5 4 4 2 6 4 7 4 5 6 All units... ... 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 Number of cases ... 3,5123,510 479 416 604 571 672 722 615 686 397 416 437 408 269 262 1 Based on changes in amount of annual income received as reported by spending units early in 1950 (fifth survey) and early in 1949 (fourth survey). 2 Income change from 1948 to 1949 related to 1949 income. 3 Income change from 1947 to 1948 related to 1948 income. 954 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1950 SURVEY OF CONSUMER FINANCES TABLE 7 DISTRIBUTION BY 1948 INCOMES OF SPENDING UNITS WITHIN 1949 INCOME GROUPS X Percentage distribution of spending units within 1949 income groups 1948 annual money income before taxes All Under $1,000- $2,000- $3,000- $4,000- $5,000- $7,500 sp u e n n i d t i s ng $1,000 $1,999 $2,999 $3,999 $4,999 $7,499 and over Under $1,000 ... 14 67 18 5 1 1 (2) $l,000-$l,999 15 12 50 16 3 1 . $2 000-$2 999 20 5 13 54 23 7 2 $3,000-$3,999 18 2 4 13 53 29 8 1 $4,000-$4,999 < 10 (2) 1 2 10 39 22 4 $5,OOO~$7 499 8 1 1 2 11 50 19 $7,500 and over 4 (2) (2) (2) 1 5 65 Not ascertained. 11 13 13 9 8 11 11 11 All income groups 100 100 100 100 100 100 100 100 Number of cases 3,512 479 604 671 615 397 437 269 1 Based on reports of spending units interviewed early in 1950 (fifth survey) concerning annual incomes in both 1948 and 1949. As shown in the table, the 1948 income of one-tenth of all spending units could not be determined at the beginning of 1950. 2 Less than one-half of 1 per cent. ably have many more consumer units in the middle ary rises in prices and incomes. Some groups of the distribution and many fewer at either the whose incomes lagged in the early stages of the high or low end than is found in a distribution inflation improved their relative positions in based on incomes received in a single year. 1948 and 1949; other groups which benefited initially lost ground relatively in the following years. DISTRIBUTION OF INCOME These changes apparently resulted in a distribution Survey data indicate that the share of total of income in 1949 similar to that existing before money income obtained by the highest tenth of the 1947. As shown in Table 8, the share of the top population when ranked by size of income was tenth in 1949 was perhaps even slightly below smaller in 1949 than in 1947, when it was at a that in 1946, although the difference is not great postwar high. The 1947 peak followed the lifting enough to be statistically reliable. of most wartime controls and the onset of inflation- The half of the population immediately below TABLE 8 PROPORTION OF TOTAL MONEY INCOME RECEIVED BY EACH TENTH OF THE NATION'S SPENDING UNITS WHEN RANKED BY SIZE OF INCOME, 1949, 1948, 1947, AND 1946 1 Percentage of total money income before taxes Lowest income Spending units within group ranked according By each tenth Cumulative to size of income 1949 1948 1947 1946 1949 1948 1947 1946 1949 1948 1947 1946 Highest tenth..... 30 f-31 33 32 30 >-31 33 32 $5,800 $6,000 $5,700 $4,850 Second. . 15 15 15 15 45 46 48 46 4,500 4,500 4,200 3., 750 Third 12 12 12 12 58 58 60 58 3,760 3,750 3,500 3,100 Fourth 11 10 10 10 68 68 70 69 3,200 3,200 3,000 2,700 Fifth 9 9 9 9 78 •76 78 77 2,700 2,840 2 ,530 2,300 Sixth 8 rg 7 7 85 84 86 85 2,290 2,400 2,100 2,000 Seventh 6 6 6 6 91 90 91 91 1,810 2,000 1,700 1,500 Eighth 5 5 4 5 96 95 96 95 1,280 1,500 1,200 1,150 Ninth 3 3 3 3 99 99 99 99 710 860 750 700 Lowest tenth 1 1 1 1 100 100 100 100 (2) (2) (2) (2) r Revised. 1 Income data for each year are based on interviews during January, February, and early March of the following year. It is possible that the proportion of income received by the highest tenth of income receivers is underestimated by several percentage points in all years. Samples of approximately 3,500 spending units having been used in these three surveys, it cannot be expected that a completely representative sample of the highest dollar incomes was obtained. 2 Not available from survey data. NOTE.—Detailed figures may not add to cumulative figures because of rounding. AUGUST 1950 955 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1950 SURVEY OF CONSUMER FINANCES the highest tenth (the second through the sixth small amounts of income or income from sources highest deciles, where incomes ranged between other than their chief one. The survey interview $2,290 and $5,800 in 1949) increased its share of is designed to help people recall these items but total income to about 55 per cent in 1949, the not to probe exhaustively into these matters. In a biggest it had received in the postwar period. few cases, also, when people promptly report their The lowest four-tenths of the population, when total annual income from all sources, they ^are not ranked by income, appeared to receive the same asked to provide details regarding sources. These or a slightly smaller share of the total than in limitations affect the precision of the data but 1948. A substantial increase in the volume of busi- probably do not seriously alter their major outlines. ness losses (negative income) by farm and non- As one would expect, by far the most frequently farm businessmen contributed to an apparent reduc- received type of income was that from wages and tion in the share of the lowest tenth of the popula- salaries. Nearly 8 in every 10 spending units retion. ported some income from this source in 1949, Available data indicate that income has been more which was about the same proportion as in earlier evenly distributed throughout the postwar period postwar years. The next most frequent source of than in 1941. While comparisons with prewar income (received by almost 3 in every 10 units) data have certain limitations, they are not con- was some type of pension, annuity, allowance, sidered sufficient to affect the major point.5 In benefit, or contribution. For some spending units, the postwar period, the share of the highest tenth this was the only or major source of income; for has been consistently smaller than in 1941 and that others, it constituted supplementary income. For of the lowest four deciles has been consistently instance, some consumers who were employed for larger. Even in 1947, when the share of the lowest most of the year reported receiving unemployment four-tenths of the population was at a postwar compensation for a few weeks and some veterans minimum, it amounted to 14 per cent of total inreceived State bonuses. come compared with 12 per cent in 1941. The Other sources of income included unincorpochief reasons for this shift are the relatively high rated nonfarm business, farming, rental income levels of employment and low levels of unemployfrom roomers and boarders, other rental income, ment that have prevailed since the war and the professional practice, and interest, dividends, trust marked increase in farm cash income, funds, and royalties (see Table 9). The pattern of change in wage and salary in- SOURCES OF INCOME come between 1948 and 1949 was generally similar The Survey of Consumer Finances provides some to that already described for total income in that information on the sources of income of the various there was an increase in the proportion of low ingroups in the population and the characteristics of comes (below $2,000) and a decline in the proporpeople who receive income from rent, from wages tion of intermediate incomes (between $2,000 and and salaries, etc. Although the survey is not de- $4,999). The increase in frequency of units with signed to provide detailed information of this high incomes ($5,000 and over) was greater in the nature, certain of these types of data are obtained case of incomes from wages and salaries alone than in the course of the interview. This material is sugwhen total money income was considered, chiefly gestive but by no means conclusive on these because of a falling off in the frequency of incomes points. Many people tend to forget or disregard of this size from unincorporated nonfarm busi- 6 Income, data for 1941 are available from a survey con- nesses and from farming. ducted jointly by the Bureau of Labor Statistics, U. S. De- Receipt of some income from wages and salpartment of Labor, and the Bureau of Human Nutrition and aries was reported by nearly all units (about 9 in Home Economics, U. S. Department of Agriculture. See Family Spending and Savins During Wartime (Bureau of every 10) with incomes between $2,000 and $7,499. Labor Statistics Bulletin No. 822), April 1945. The survey Among units with very low incomes (less than covering 1941 and the surveys covering 1946 through 1949 $1,000) or very high incomes ($7,500 or more), differed somewhat in their definitions of money income, spending unit, universe, as well as in sampling methods. this type of income was much less frequent, as can However, it is believed that the data show with reasonable be seen in Table 10. It is of interest that as many accuracy the nature of certain broad changes in the pattern of income during these years. as 3 in 10 of the spending units headed by farm 956 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1950 SURVEY OF CONSUMER FINANCES TABLE 9 PERCENTAGE DISTRIBUTION OF SPENDING UNITS BY AMOUNT OF INCOME RECEIVED FROM SPECIFIED SOURCES, 1949 Rent2 fr A om m o s u p n e t c if o i f e d i nc so o u m r e ce s W a a l a a n g r d i e e s s t c P i b o o e e n n n n s t s e , r i f i e o i b t t n s u c s , - . , 1 Ro a o n m d ers Other U n b p o u n o n s i r i n f a n a c t e r e o m s d r s - se p a l r f P n a - r d e c o m t f i f e c a p s e r l s m o , i y o i o m n n t a g h e l e n 3 r t, Farming 4 a t n r d u I d i n v s t t i r e d o r e f y e u n a s n d l t t d , s i , s e , s boarders rent None 22 72 96 90 91 84 91 88 Some income 78 28 4 9 9 16 9 12 Negative 1 1 $l-$99 . (•) 3 1 1 1 } 2 5 $100-$499 5 13 2 4 3 4 $500-$999 6 8 1 2 2 1 $1,000-$1,999 15 3 1 1 3 2 $2,000-f2,999 18 1 1 2 1 $3,000-13,999 15 1 $4,000-$4,999 8 (5) 1 $5,000-$9,999 9 1 $10,000 and over 1 1 1 Undetermined amount 1 Not ascertained . All units 100 100 100 100 100 100 100 100 1 Includes income from old-age pensions, retirement pay, annuities, unemployment compensation, welfare payments, alimony, regular contributions, veterans' pensions, school allotments, State bonuses, and allotments to families of servicemen. 2 The question was first asked: "Did you receive income from roomers and boarders?" If yes, "How much?" A gross figure was accepted if less than four roomers were involved. Respondents were then asked: "Did you receive money from other rent?" If yes, 'How much was it after allowing for expenses?" 3 Includes net income from farming by nonfarm operators as well as farm operators. See footnote 4. 4 Includes only net income from farming by farm operators. Farm operator spending units are, in general, headed by persons who receive more than half of their money income from the operation of a farm. See footnote 3. 6 Less than one-half of 1 per cent. operators reported some income from wages and come scale. For approximately half of the recipients salaries.6 In most cases, the sums involved amounted of such income the amounts involved were small, to less than $500. amounting to less than $500. Of the 5 in every Income from pensions, annuities, allowances, 100 consumer spending units that received $500 benefits, or contributions was received by some per- or more in rental income other than from roomers sons at all income levels. The frequency of this and boarders, about 80 per cent had total money source of income was greatest at the lower levels incomes of $2,000 or more in 1949. About 2 per of income, but as many as 1 in every 10 with in- cent of all consumer units received rents as part comes of $7,500 or more reported receipts of this of total incomes of less than $2,000. For many type. Income of this nature was the sole or the in this group, rents were an important source of chief source of income for nearly 2 units in every income. 10 with total money incomes of less than $1,000 in Approximately 4 in every 10 of the units with 1949. As might be expected, retired persons de- rental incomes from property of $500 or more in pended on these sources to a greater extent than 1949 were headed by managerial and self-employed other groups; about 7 in every 10 spending units persons or by retired persons. As in the case of headed by such persons received some income of pensions, etc., retired persons appear to have obthis type and the amounts received were larger, tained income in this manner more frequently on the average, than those reported by other groups. than other consumer groups and in larger amounts. Rental income other than from roomers and More than 1 in every 10 spending units headed boarders, such as from a house or an apartment, a by retired persons received $500 or more in rental commercial building, or a farm, was obtained by income during 1949 and for about half of this group about 1 spending unit in every 10. The proportion the amount came to $2,000 or more. was somewhat smaller among lower income units Income from dividends, interest, trust funds, and and somewhat higher in the upper part of the in- royalties was reported by slightly more than 1 in every 10 spending units. This is a substantial un- 6 Farm operator spending units are generally headed by per- derstatement of the frequency of such receipts, besons who receive more than half of their money income from the operation of a farm. cause a large proportion of people forget or disre- AUGUST 1950 957 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1950 SURVEY OF CONSUMER FINANCES TABLE 10 INCOME FROM SPECIFIED SOURCES RECEIVED BY SPENDING UNITS IN VARIOUS INCOME AND OCCUPATIONAL GROUPS, 1949 * [Percentage distribution of spending units within specified groups] 1949 annual money income before taxes Occupation of head of spending unit Amo s u p n e t c i o fi f e d in s c o o u m rc e e from s u p i A n e n n i l g t l d s - $ U 1 n ,0 d 0 e 0 r $ $ 1 1 ,V, , 0 9 0 9 0 9 - $ $ 2 2 , , 0 9 0 9 0 9 - $ $ 3 3 , , 0 9 0 9 0 9 - $ $ 4 4 , , 0 9 0 9 0 9 - $ $ 5 7 , , 0 4 0 9 0 9 - $7 a , n 5 d 00 P p s s r r i a e o o o n m f f n d e e a i s s - l - - a M g s a e e e m n a l r d f n i - - a - l C a ic l n e a d r l - S s s k k a e i i n m l l l l d e e i- d d s s e k a U r i n v l n l d i e - c d e F o a p a t r o e m r r - Retired sional ployed Wages and salaries: None 54 25 14 40 45 C2) 73 $1-499...- () 2 2 1 $100-$499 5 20 2 2 2 1 1 19 $500-$999.. 6 21 10 2 3 1 3 4 4 12 5 $l,00O-$l,999. 15 33 57 13 2 11 7 24 13 28 4 $2,000-$2,999 18 32 69 2 15 7 27 27 26 $3,000-$4,999......... 24 (2X3) 2 33 15 28 43 18 $5,000 and over. 10 47 25 20 14 12 3 Undetermined amount. 1 Not ascertained (2) All cases 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 Pensions and allowances, etc.:* None .. 72 62 64 72 76 82 87 85 73 79 81 28 $l-$99 3 2 3 4 3 1 2 2 5 2 1 1 $100-$499... 13 18 13 14 13 7 16 12 7 16 $500-$999. 8 18 7 5 3 5 5 29 $1,000-11,999 3 2 2 1 2 20 $2,000-$2,999 1 1 4 $3,000 and over. ( 1 Undetermined amount. Not ascertained All cases 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 Interest, dividends, etc.:5 None... 91 57 81 81 93 74 $l-$99 4 8 4 5 4 5 $10O-$499... 5 13 8 6 2 7 $500-$999.... ( 1 2 1 1 $l,000-$l,999 3 2 f2) $2,000-$2,999 1 1 $3,000-$4,999........ (2) 1 $5,000 and over 1 Undetermined amount 1 1 Not ascertained.. All cases 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 Rent other than from roomers and boarders:6 None 94 92 90 93 94 94 79 $1-499 (2) (2) 1 1 1 $10O-$499 3 5 4 5 2 2 $500-$999...... 2 1 2 1 2 1 $1,000-$1,999 1 1 1 1 1 $2,000-$2,999 1 1 $3,00O-$4,999........ (*) $5,000 and over...... (2) Undetermined amount Not ascertained All cases 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 Number of cases ,512 479 604 672 615 397 437 287 466 486 895 344 410 180 1 Data are subject to considerable reporting error, especially where small amounts are involved. 2 Less than one-half of 1 per cent. s Total income is less than income from wages and salaries for these units because of business losses or negative farm income. 4 Includes income from old-age pensions, retirement pay, annuities, unemployment compensation, welfare payments, alimony, regular contributions, veterans' pensions, school allotments, State bonuses, and allotments to families of servicemen. 6 Includes interest, dividends, trust funds, and royalties. 6 The question was first asked: "Did you receive income from roomers and boarders?" Respondents were then asked "Did you receive money from other rent?" If yes, "How much was it after allowing for expenses?" NOTE.—Details may not add to totals because of rounding. 958 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1950 SURVEY OF CONSUMER FINANCES gard these items, especially when the amounts are It is estimated that at the beginning of 1949 there small. In the case of individuals with savings ac- were approximately 45.2 million family units and counts, for instance, less than 1 in every 3 with 52.0 million spending units residing in private deposits of $1,000 or more reported having obtained households. Since the same total amount of conany interest income during 1949. For those with sumer income is distributed among the smaller smaller amounts on deposit, the proportion was even number of family units, it is to be expected that smaller. Understatements of this type of income families will have somewhat higher average inwere probably much less frequent where the comes than spending units. amounts received were sizable. Reports of income of $500 or more from interest, TABLE 11 dividends, etc, were very infrequent among consumers with total money incomes of less than INCOME GROUPING OF FAMILY UNITS AND MONEY INCOME RECEIVED, 1949, 1948, AND 1947 X $7,500. Among those with incomes above this level, such receipts were reported by about 2 in [Percentage distribution] every 10 units. Again, as in the case of rent from 1949 1948 1947 property, retired persons obtained income in this Annual money manner relatively more frequently and in larger -*• befo in re c o t m ax e es F i a l m y - m T o o n ta e l y F i a l m y - m T o o n ta e l y F i a l m y - m T o o n ta e l y amounts than persons with other occupational units2 income units2 income units2 income status. Under $1,000. 13 2 11 2 13 2 Tables 14-18 at the end of this article contain $l,000-$l,999 15 6 15 6 18 7 $2,000-$2,999 18 12 20 12 20 13 data supplemental to those given in this text. $3,000-$3,999 19 18 20 18 17 15 $ $ 4 5 f , 0 0 0 0 0 0 - - $ $ 4 7 , , 9 49 9 9 9. 1 1 2 5 2 1 3 4 1 1 2 4 2 1 1 4 1 1 1 3 2 1 0 3 FAMILY INCOME IN 1949 $7.500-19,999. 4 }» 4 }« 4 } 30 $10,000 and over 4 4 4 Some of the income data reported by spending units in the Survey of Consumer Finances are tabu- All income groups. 100 100 100 100 100 100 lated by family units as well as by spending units. M M e e d an ia n i n in c c o o m m e e ....... $ $ 3 3 , , 1 7 0 6 0 0 $ $ 4 3 , ,1 0 2 2 0 0 $ $ 3 2 , , 7 9 8 2 0 0 A family is defined as all persons living in the same dwelling who are related by blood, marriage, or 1 Income data for each year are based on interviews during January, February and early March of the following year. Family adoption. A single person may constitute a "fam- units are defined as all persons living in the same dwelling who are related by blood, marriage, or adoption. ily" if he is living by himself or with persons 2 Includes single-person family units. unrelated to him. The term "family unit" as used in the survey is thus equivalent to the "family" As is shown in Table 11, the median family inand "individual not in family" definitions of the come in 1949 was $3,100 or roughly 15 per cent Bureau of the Census, United States Department higher than the median income for spending units. of Commerce. The grouping in some cases of more than one There may be more than one spending unit in a spending unit into a family unit resulted in 23 family since a spending unit is defined as all per- per cent of all family units having incomes of sons living in the same dwelling and belonging to $5,000 or more in 1949 compared with 16 per the same family who pool their incomes to meet cent of all spending units. Conversely a smaller their major expenses. For example, a grown son proportion of families than of spending units had who is working and does not pool his income with incomes of less than $3,000. his parents' income, even though he may pay some- DISPOSABLE INCOME thing for board and room, is treated as a separate spending unit if he retains more than half of his Thus far this article has been discussing the disincome. Likewise, married children or other rela- tribution of money income before taxes. For some tives who do not pool their incomes with that of purposes it is more useful to know the distribution the head of the family, even though living in the of income after taxes. A beginning step in this disame dwelling, constitute separate spending units. rection was made in the 1948 survey, in which esti- In tabulating on a family basis, the incomes of all mates of Federal personal income tax liability on related persons living in the same dwelling are 1947 income, apart from tax on capital gains or combined. losses, were prepared for each spending unit. Fol- AUGUST 1950 959 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1950 SURVEY OF CONSUMER FINANCES lowing a somewhat improved procedure, the data tax amounted to 10 per cent or more of income of the 1949 and 1950 surveys have been utilized to before tax. The frequency of tax liabilities above prepare like estimates of personal income tax liabil- this rate fell of! so sharply that only about 1 unit ity for 1948 and 1949 incomes. in every 100 incurred a liability of 16 per cent or Income after tax, called disposable income in more of income before tax. In terms of amount, this article, was estimated for each spending unit by nearly 4 spending units in every 10 incurred an deducting computed Federal income tax liability obligation of $200 or more; for slightly more than from money incomes before taxes.7 The tax esti- 1 in 10, the amount came to $500 or more. mates, unlike other survey data, were not based on Reflecting the progressive nature of the Federal special information concerning tax liabilities ob- income tax, the proportion of units with such tax tained during the interview. They were computed liabilities rose very sharply from lower to higher inon the basis of the income, size, and composition come groups, as did the amount of the tax. Less of each spending unit and the number of persons than 1 unit in every 10 with incomes under $1,000 not living in the dwelling who were dependent on had tax liabilities and it is estimated that the the members of the spending unit for support. A amount involved was less than $50 in every case. detailed presentation of the estimating procedure is By way of comparison, nearly every unit with an given in the appendix to this article. income between $5,000 and $7,499 was obligated It should be stressed that these income tax esti- to pay income tax and in a majority of these cases mates are only approximations; that they refer not the amounts came to $500 or more. to payments but to Federal personal income tax The effect of this tax was to reduce by 2 perliabilities, apart from taxes on capital gains and centage points the proportion of total income relosses; and that State and local income taxes are not ceived by the units with the highest incomes. In included. 1949, the highest tenth of income receivers before The distribution of spending units by income tax obtained about 30 per cent of total personal inafter Federal taxes shows, of course, a general come, while the tenth with the largest incomes downward shift from the distribution by income after tax obtained approximately 28 per cent (see before taxes. The downward shift was most marked Table 14 on page 962). Spending units in the at the upper end of the income distribution, as can lower half of the income scale had a larger share be seen in Table 12. The number of spending units with incomes of $5,000 or more (before taxes) was TABLE 12 reduced by one-fourth through taxation—from 16 DISTRIBUTION OF SPENDING UNITS AND TOTAL MONEY INCOME BEFORE AND AFTER FEDERAL INCOME TAX per cent to 12 per cent of the approximately 52.0 BY INCOME GROUPS, 1949 million spending units. Median income was low- [Per cent] ered to $2,600 from $2,700. Survey estimates indicate that nearly two-thirds Spending units Total money income of all spending units had Federal income tax liabili- After After ties in 1949. The proportion of units with no tax Income groups Before Federal Before Federal Federal income Federal income liabilities rose from 32 per cent in 1948 to 35 per income tax (dis- income tax (distax posable tax posable cent in 1949 in response to the slight decline in income)1 income)1 individual incomes. This had the effect of reducing by more than 1 million the number of Under $1,000 14 15 2 2 $l,000-$l,999 19 21 9 11 spending units with tax liabilities. The decline in $2,000-$2,999 21 23 16 19 $3,000-$3,999 19 18 19 21 income also tended to lower somewhat the amount $4,000-$4,999 ... 11 11 15 16 $5,000-$7,499 11 8 19 16 of the tax liabilities, as is shown in Table 13. $ $1 7 0 ,5 ,0 0 0 0 0 -$ a 9 n ,9 d 9 9 over 3 2 2 2 | 20 } - For 1 spending unit in every 7, Federal income All cases 100 100 100 100 7 The U. S. Department of Commerce, in estimating dis- Median income $2,700 $2,600 posable income for its national income series, deducts from Mean income...; $3,270 $3,000 personal income actual Federal personal income tax payments (not liabilities), including taxes on capital gains and losses, 1 Money income after deduction of estimated Federal personal as well as other tax and nontax payments to governments, income tax liability. See appendix, pp. 961-62, for method of estimating disposable income. Money income figures exclude chief of which are Federal estate and gift taxes and State and capital gains or losses and tax estimates make no allowance for local personal tax and nontax payments. such gains or losses. 960 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1950 SURVEY OF CONSUMER FINANCES TABLE 13 ESTIMATED FEDERAL PERSONAL INCOME TAX LIABILITY OF SPENDING UNITS WITHIN VARIOUS INCOME GROUPS, 1949 AND 1948 Percentage distribution of spending units within income group before taxes All income Under $1,000- $2,000- $3,000- $4,000- $5,000- $7,500 Estimated tax liability groups $1,000 $1,999 $2,999 $3,999 $4,999 $7,499 and over 1949 1948 1949 1948 1949 1948 1949 1948 1949 1948 1949 1948 1949 1948 1949 1948 None 35 32 93 94 60 57 33 29 15 15 5 5 1 1 $l-$49 .. 6 5 7 6 8 8 12 10 4 4 2 3 1 — $50-$99 8 8 (2) 15 15 10 11 12 11 2 3 1 1 $100-$199. 13 15 — 17 20 19 23 25 23 10 9 2 2 (2) $200-$499. . 25 26 (2) 26 27 43 46 68 66 42 33 1 (2) $500-$999 9 9 (2) 1 1 12 14 53 62 27 29 $ <K l 9 ,0 O 0 O 0 O - $l 4 K4 9 . 9 0 9 00 2 1 3 1 — — — — — 1 4 2 5 1 4 1 5 7 Hi*? 000 and n\rc*r 5 g Not ascertained 1 1 (2) — — — (2) — (2) — — (2) — 1 All units 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 3,512 3,510 479 416 604 571 672 722 615 686 397 416 437 408 269 262 1 Tax liability apart from capital gains or losses. Money income figures exclude capital gains or losses and tax estimates make no allowance for such gains or losses. 2 Less than one-half of 1 per cent. NOTE.—For 1947 estimates, see July 1949 Federal Reserve BULLETIN, Table 10, p. 789. of income after tax than of income before tax. comes of family units are presented in supplemen- Estimates of the tax liabilities and disposable in- tary Tables 19 and 20 at the end of this article. APPENDIX METHOD OF ESTIMATING DISPOSABLE INCOME The disposable income figures shown in this report therefore represent total money income less Estimates of disposable personal income, defined estimated Federal tax liabilities. These disposable for purposes of the Consumer Finances Surveys as income figures differ from the disposable personal the total money income of a spending unit less its income figures that are a part of the personal income Federal income tax liability, were made for the third series of the Department of Commerce in that the time in the 1950 survey. While no questions about Commerce series excludes tax payments (not liabili- Federal income tax payments were asked in the inties) and State and local as well as Federal taxes. terviews, it was possible to estimate a rough tax Certain information which would have been liability figure for each spending unit by taking necessary in order to calculate personal income tax into account the number of income receivers and deliability with precision was not available. The pendents in each unit and by making certain asmost important missing item was exact information sumptions about the filing of joint returns, deducon deductions claimed by spending units. The tion of allowances for contributions, and other consurvey deduction allowance was the Treasury siderations entering into the tax computations. In standard deduction on incomes up to $5,000 and the 1950 and 1949 surveys, but not in the preceding 10 per cent of incomes of $5,000 or more. Some one, information was obtained on the number of units undoubtedly claimed deductions that were dependents living outside of the dwelling. This im- larger than the amounts estimated for them, and provement in method tended to lower estimated tax some units with incomes of $10,000 or more may liabilities, although only about 5 per cent of the have claimed less than the estimated deductions. cases were affected. The estimates thus made from Table 13 shows the amounts of tax liability estithe 1950 survey represented the Federal tax liabili- mated for spending units within various income ties on 1949 incomes, not the tax payments of spend- groups. ing units during 1949. No estimates were made The tax liability for each spending unit was for State and local taxes. estimated by using a standardized procedure of AUGUST 1950 961 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1950 SURVEY OF CONSUMER FINANCES computation.1 The steps in the calculation follow: smaller deductions than 10 per cent on incomes (1) A table was prepared giving the amount of greater than $5,000; tax by size of income and by number of dependents 3. Tax-free interest; (including an extra exemption where the head of 4. Taxes on alimony received; 2 the link or his wife was over 65 years of age). 5. Taxes on capital gains and losses; The table provided for the Treasury standard de- 6. Carry-over of business and capital losses from duction for contributions, medical bills, etc., on previous years; incomes up to $5,000, and a deduction of 10 per 7. Allocation of income among the taxpayers in cent on taxable income (including items in (2) a spending unit that may differ somewhat from below), for incomes larger than $5,000. the survey allocation; (2) Taxable income was computed by deducting 8. Number of exemptions claimed for dependfrom total income amounts received by individual ents not living in the dwelling that may differ income recipients from social security benefits, from the survey figure because no question was sickness and injury benefits, armed forces pay and asked concerning the number of outside dependents allowances up to the limit of their special exemp- that would be claimed on the tax returns. Howtion, contributions for support, and other allow- ever, information was obtained in the 1950 survey able deductions. Tax-free interest was not de- on the number of relatives not living with the ducted but would be received by only about 1 per respondent who were dependent on him for more cent of the income recipients. than half of their living and in the 1949 survey on (3) In the case of spending units containing one the number of persons who were dependent upon person only, the tax was taken directly from the him for their living; and prepared table. 9. State and local income taxes, which amount (4) In all cases of spending units containing a to about one-tenth of Federal personal income tax. husband and wife, it was assumed that a joint re- For individual spending and family units, taxes turn would be filed. may have been over- or under-estimated. The limi- (5) If persons other than the head of the spend- tations of these tax estimates should be recognized ing unit and his wife received income in such in making use of either the tax or disposable inamounts that filing separate tax returns was obliga- come data. tory, this was done in the 1950 survey. In previous years, separate returns were calculated only if the TABLE 14 tax liability of the entire spending unit was thereby PERCENTAGE OF TOTAL MONEY INCOME RECEIVED BY EACH reduced. Dependents were always included on the TENTH OF THE NATION^ SPENDING UNITS WHEN RANKED tax return of the main income receiver, unless a BY SIZE OF INCOME, 1949, 1948, AND 1947 different handling was indicated by the interview. Money income Money income after (6) Where more than one tax return was esti- before Federal Federal income tax Spending units income tax (Disposable income)2 mated for a given spending unit, the separate tax t r o a n si k z e e d of a c i c n o co rd m in e g l liabilities were computed and added together and 1949 1948 1947 1949 1948 1947 the total was considered to be the tax liability of the spending unit. Highest tenth 30 '31 33 28 29 31 Seconds 15 15 15 15 15 15 (7) Where a family contained more than one Third 12 12 12 13 12 12 Fourth 11 10 10 11 10 10 spending unit, the separate tax liabilities were com- Fifth . . .. 9 9 9 9 9 9 Sixth 8 '8 7 8 8 8 puted and added together and the total was con- Seventh 6 6 6 7 7 6 Eighth. . 5 5 4 5 5 5 sidered to be the tax liability of the family. Ninth 3 3 3 3 4 3 Lowest tenth 1 1 1 1 1 1 This method of estimating taxes made no provision for the following: 1 * • U R n e it v s i s h e a d v . e been ranked by size of money income either before 1. Special exemption for the blind; 2 or 2 a M fte o r n e t y a x i , n a c s o m in e d ic a a ft t e e r d d b e y d u th ct e i o c n o lu o m f n e s h ti e m ad at i e n d g s. Federal personal income tax liability. See appendix, pp. 961-62, for method of esti- 2. Larger deductions than the Treasury standard mating disposable income. Money income figures exclude capital deduction on incomes up to $5,000, or larger or gains or losses and tax estimates make no allowance for such gains or losses. 1 Acknowledgment is made of the assistance of members 2 In a few cases, the interviews furnished information conof the Division of Tax Research, Treasury Department, incerning this point, which was then taken into account in formulating the method of estimate. estimating the tax liability. 962 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1950 SURVEY OF CONSUMER FINANCES TABLE 15 PERCENTAGE DISTRIBUTION OF SPENDING UNITS WITHIN VARIOUS INCOME GROUPS ACCORDING TO SPECIFIED CHARACTERISTICS 1949 AND 1948 Characteristics of All income Under spending unit groups $1,000 1949 1948 1949 1948 Number of persons in -spending unit: One 22 22 44 44 Two 28 31 29 31 Three. 21 20 10 10 Four 14 13 6 5 Five or more 15 14 11 10 Not ascertained. 0) All cases 100 100 100 100 Number of income receivers in spending unit: None . . 1 1 3 5 One 76 77 84 80 Two or more 23 22 13 15 Not ascertained (0 (*) All cases 100 100 100 100 Age of head of spending unit: 18-24 10 11 11 13 25-34 ... 23 21 12 8 35-44 22 22 11 8 45-54 18 20 13 12 55-64 14 15 18 18 65 or over 12 11 35 41 Not ascertained 1 0) C1) C) All cases 100 100 100 100 Race: White 92 (2) 83 Negro 7 15 Other Not ascertained 2 All cases 100 100 Occupation of head of spending unit: Professional and semi-professional 7 7 1 Managerial and self-employed. 12 12 4 Clerical and sales 13 14 3 Skilled and semiskilled 27 27 7 Unskilled and service workers. 14 15 15 Farm operator 10 9 24 Retired 5 6 14 Other 12 8 32 Not ascertained C1) 1 (i) All cases 100 100 100 Place of residence of spending unit: ^Metropolitan area ^ 30 32 14 Other urban area4 ... 38 37 35 Rural area 6 32 31 51 All cases 100 100 100 Education of head of spending unit: Grammar school 41 40 61 High school. . 39 40 23 College 16 17 6 None 3 2 9 Not ascertained. 1 1 1 All cases 100 100 100 Number of cases 3,512 3,510 484 :333 Annual money income before taxes $1,000- $2,000- $3,000- $4,000- $5,000- $1,999 $2,999 $3,999 $4,999 $7,499 1949 1948 1949 1948 1949 1948 1949 1948 1949 1948 37 37 24 26 12 11 8 6 5 6 28 28 27 29 26 30 25 33 33 38 19 14 22 21 26 24 26 25 26 27 6 11 14 10 19 19 23 17 16 15 10 10 13 14 17 16 18 18 19 14 0) 1 1 C1) 100 100 100 100 100 100 100 100 100 100 1 C1) 1 1 1 83 84 81 83 78 76 66 67 54 59 17 15 19 17 22 23 34 32 46 40 0) (0 C1) (l) 100 100 100 100 100 100 100 100 100 100 20 19 14 15 6 7 4 6 3 3 21 19 26 23 31 29 26 26 27 21 15 15 23 21 25 27 30 31 27 30 15 16 15 17 18 21 24 20 26 27 14 15 13 16 13 12 13 12 11 14 14 16 8 7 6 4 2 5 5 5 1 C1) 1 1 1 C1) 1 0) 1 100 100 100 100 100 100 100 100 100 100 89 (2) 92 (2) 96 (2) 97 (2) 97 10 i 7 3 2 2 0) 0) 1 1 1 (2) 100 100 (2) 100 (2) 100 100 2 3 4 5 5 8 7 9 10 11 5 7 8 7 7 10 7 15 13 27 4 16 14 17 19 12 17 17 17 16 4 16 13 33 31 44 45 42 44 31 16 18 25 17 19 14 12 8 7 5 23 11 12 7 7 4 4 4 4 5 20 8 9 4 4 2 1 1 2 3 26 20 15 10 8 6 7 4 3 2 1 0) C1) 100 100 100 100 100 100 100 100 100 100 18 23 24 28 32 34 34 42 40 44 33 41 37 39 37 38 39 40 40 36 49 36 39 33 31 28 27 18 20 20 100 100 100 100 100 100 100 100 100 100 62 47 51 45 40 34 34 30 29 26 22 38 34 39 45 50 48 45 47 42 7 10 11 14 12 14 16 24 22 30 8 4 3 2 2 2 1 1 1 1 1 1 1 C1) 1 1 C1) 1 1 100 100 100 100 100 100 100 100 100 100 417 611 579 676 732 622 686 402 416 445 '333 $7,500 and over 1949 1948 4 4 35 30 25 24 20 26 16 16 (x) 0) 100 100 1 71 75 29 24 C1) 100 100 (1) 12 14 35 27 30 37 15 16 8 6 C1) 0) 100 100 98 1 100 (2) li 22 24 29 44 48 12 8 6 30 5 8 3 2 9 14 9 1 4 2 5 1 3 100 100 100 45 39 42 32 38 32 23 23 26 100 100 100 25 16 16 43 34 24 30 48 59 (*) 2 1 100 100 100 413 272 267 1 Less than one-half of 1 per cent. 2 Data not available. 3 The 12 largest cities in the United States and their surrounding suburban and rural areas. 4 Includes cities of 2,500 population or more, but not metropolitan. 5 Includes towns of less than 2,500 population and open country. NOTE.—Details may not add to totals because of rounding. AUGUST 1950 963 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1950 SURVEY OF CONSUMER FINANCES TABLE 16 INCOME DISTRIBUTION OF SPENDING UNITS HAVING SPECIFIED CHARACTERISTICS, 1949 * [Per cent] Annual money income before taxes Characteristic of spending unit ca o s f es i g n r c A o o u l m l ps e $ U 1 n ,0 d 0 e 0 r $ $ 1 1 , , 0 9 0 9 0 9 - $ $ 2 2 , , 0 9 0 9 0 9 - $ $ 3 3 , , 0 9 0 9 0 9 - $ $ 4 4 , , 0 9 0 9 0 9 - $ $ 5 7 , , 0 4 0 9 0 9 - $7 o a , v n 5 e d 0 r 0 All spending units 3,512 100 14 19 21 19 11 11 5 Number of persons in spending unit: One 748 100 28 31 23 10 4 3 1 Two ... 1,012 100 15 19 20 17 10 13 6 Three 744 100 7 17 22 22 13 13 6 515 100 6 9 21 26 18 13 g 491 100 11 14 20 22 13 14 6 Number of income receivers in spending unit: One 2,679 100 16 21 22 19 9 8 5 Two or more ,. . 811 100 8 13 17 18 16 21 7 Age of head of spending unit: 18-24., .-...• 342 100 16 36 29 11 4 4 25-34 . . .. 779 100 7 18 24 24 12 12 3 35-44 777 100 7 13 22 21 15 14 8 45-54 670 100 10 16 18 19 14 15 8 55-64... 495 100 18 19 20 18 10 9 6 419 100 43 23 14 10 2 4 4 Race of head of spending unit: White . 3,310 100 13 18 21 19 11 11 6 185 100 32 29 21 10 4 3 1 Education of head of spending unit: Grammar school 1,321 100 21 22 23 16 9 7 2 High school 1,371 100 8 18 21 23 13 12 5 College ....-* 706 100 5 12 18 16 15 19 15 Place of residence of spending unit: Metropolitan area 2 1,157 100 7 14 20 21 15 16 7 1,253 100 13 21 22 18 11 10 5 Rural area * . . i 1,102 100 23 22 22 16 6 7 4 Program Surve 3 Includes cities of 2,500 population or more, but not metropolitan. * Includes towns of less than 2,500 population and also open country. These figures are especially influenced by exclusion of nonmoney income of farmers. NOTE.—Details may not add to totals because of rounding. TABLE 17 TABLE 18 INCOME RECEIVED FROM UNINCORPORATED FARM AND DISTRIBUTION OF TOTAL MONEY INCOME BEFORE AND AFTER NONFARM BUSINESSES, 1949 AND 1948 FEDERAL INCOME TAX, BY INCOME GROUPS BEFORE TAX, 1949 Percentage distribution Percentage of total money income Percent- A ne m t o in u c n o t m o e f Farm operators I u S r n i p e n i e c n c n e o c i d o m v i r i n e n p g g o f r r u a a o n n t m e i y d ts i 1 n 9 c 4 o 9 m a e n b n e u f a o l r e m t o a n x e e y s sp a u e g n n e d i t o i s n f g F i B n e c t e d a o f e x o m r r a e e l A in ( f d c i t i n o e s r c m p o o F e m s e a t d e a b ) e x l e r l al nonfarm businesses 1949 1948 1949 1948 $ U l n ,0 d 0 e 0 r - $ $ 1 l , , 0 9 0 9 0 9 1 1 4 9 • 9 2 2 9 $2,000-$2,999 21 16 17 $3,000-$3,999 19 19 20 Negative 14 5 10 3 $4,000-$4,999 11 15 15 Under $500 19 19 6 8 $5,000-$7,499 11 19 19 $ $ 5 l, 0 0 0 0 - 0 $ - 9 $ 9 l 9 ,9 99 ....... . 2 1 0 1 2 1 0 7 1 8 3 1 5 2 $ $1 7 0 ,5 ,0 0 0 0 0 - $ a 9 n , d 9 9 o 9 v . e .. r 2 3 } 2 0 } » $2,000-$2,999 13 12 15 14 $ $ 4 3 , , 0 0 0 0 0 0 - - $ $ 4 3 , , 9 9 9 9 9 9. . ., 3 7 1 7 4 1 1 0 1 All cases 100 100 100 $5,000-$9,999 8 16 24 $10,000 and over. 4 7 8 Not ascertained 1 * \ 4 5 All cases 100 100 100 100 g m a a in ti s n g o r a i l s o p s o s s e a s o i a e n d in c t o a m x e e , sti l m vi a o t n e e s y m in a c k o e m e n o n g a u l r l e o s w e a x n c c i e u a f e o r c ap su it c a h l Number of cases..... 410 428 309 329 gains or losses. 1 Amounts of income refer to farm income only. These figures are especially influenced by exclusion of nonmoney income of farmers. 964 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1950 SURVEY OF CONSUMER FINANCES TABLE 19 TABLE 20 INCOME GROUPING OF FAMILY UNITS AND MONEY INCOME ESTIMATED FEDERAL PERSONAL INCOME TAX LIABILITY OF BEFORE AND AFTER FEDERAL INCOME TAX, 1949 FAMILY UNITS, 1949, 1948, AND 1947 1 [Percentage distribution] [Percentage distribution of family units] Family unitsx Total money income Estimated tax liability 2 1947 Income group F i B n e c t e d a o f e o x m r r a e e l i ( n d in F c is c A o e p o m d f o m t e e e s r e a r a t ) b l a 2 l x e F i B n e c t e d a o f e o x m r r a e e l i ( n d i F n c is A c o e p o d m f o m t e e e s r r a e a t b ) l a 2 l x e $ $ $ N 5 1 l o - 0 0 $ n - 0 e 4 $ - 9 $ 99 199 2 1 9 5 7 2 $200-$499. 25 $500-$999 15 Under $1,000 13 13 2 2 $l,000-$l,999 4 $l,000-$l,999 15 16 6 7 $2,000-$4,999 2 $2,000-$2,999 18 22 12 16 $5,000 and over 1 $3,000-$3,999 19 19 18 19 $4,000-$4,999 12 12 14 16 All units 100 $5,000-$7,499 15 12 23 21 $7,500-19,999 4 3 $10,000 and over. .. 4 3 } » } » 1 Includes single-person families. 2 Tax liability apart from capital gains or losses. Money in- All income groups 100 100 100 100 come figures exclude capital gains or losses and tax estimates make no allowance for such gains or losses. M M e e d an ia n in c in o c m o e me $ $ 3 3 , , 1 7 0 6 0 0 $ $ 2 3 , , 9 4 5 6 0 0 3 Less than one-half of 1 per cent. NOTE.—The schedule of Federal personal income taxes was 1 Includes single-person families. revised in 1948 in a manner which tended to lower liabilities at all 2 Money income after deduction of estimated Federal personal levels of the income distribution. For the most part, the downincome tax liability. See appendix, pp. 961-62 for method of ward shift in tax liabilities reflects this revision. However, estimating disposable income. Money income figures exclude methods of working out the tax estimates have been improved. capital gains or losses and tax estimates make no allowance for These changes in method tend to lower slightly the level of 1948 such gains or losses. and 1949 tax liabilities as compared with those for 1947. AUGUST 1950 965 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ESTIMATED LIQUID ASSET HOLDINGS OF INDIVIDUALS AND BUSINESSES1 Both individuals and businesses increased their Administrators of personal trust funds continued liquid asset holdings during 1949. The increase for to reduce the proportion of trust assets held in individuals was estimated at 2.8 billion dollars com- liquid form. In 1949, increases in liquid assets (pripared with 1.9 billion in 1948; that for businesses marily United States Government securities) conat 1.0 billion. For the first year since 1945 business stituted only one-third of the net increase in total as a whole registered an increase. Unincorporated assets of these funds, as compared with one-half in businesses drew down their liquid assets for the 1948 and two-thirds in 1947. This decline reflected fourth successive year but an increase in corporate in part the greater opportunities for investment and holdings, more than oflset this decline. greater legal latitude given to administrators of Estimates of liquid asset holdings of individuals these accounts in recent years. "Other" personal and businesses as of December 31, 1949, and for holdings of the two most liquid types of assets— end-of-year and selected midyear dates from De- currency and demand deposits—were reduced for cember 1939 to December 1949, are presented in the second consecutive year, but the reductions were the accompanying table. These estimates cover the somewhat less than in 1948. Liquid funds conprincipal assets which are most readily convertible tinued to be directed into United States Governfor use and for which there are representative statis- ment securities, savings and loan shares, and time tics of ownership. Currency and demand deposits deposits. Although the net increase in holdings of are the basic forms of cash ordinarily used, and United States Government securities by individuals under existing practices time deposits, shares of sav- was greater in 1949 than in any year since 1945, the ings and loan associations, and United States Gov- number of consumer spending units holding these ernment securities are readily convertible into cash. securities continued to decline. According to the fifth Survey of Consumer Finances conducted early Notwithstanding the increase in liquid asset holdthis year, roughly 1.5 million fewer spending units ings of individuals in 1949, total personal saving as held such securities at the beginning of 1950 than estimated by the Department of Commerce showed a year earlier.2 a substantial decline. This decline was manifested in net disinvestment by owners of unincorporated The estimates presented in the accompanying farm and nonfarm enterprises. Nonliquid saving table include liquid assets held by individuals (inby households, according to Commerce and Federal cluding farmers), unincorporated businesses, and Reserve data, appears to have been substantially the corporations other than insurance companies. They same in amount and form in 1948 and 1949. The do not include holdings by Federal, State or local major forms continued to be nonfarm houses pri- governments, Government agencies, foreigners, marily for owner occupancy, insurance and pension banks, savings and loan associations, insurance comreserves, and securities of corporations and State panies, or nonprofit associations. The estimates are and local governments. Personal indebtedness approximations of amounts shown or implied in acother than mortgage debt rose approximately as counting records of the holders rather than those much in 1949 as in the preceding year. reported by banking and Treasury records, although The reduction of liquid asset holdings by unin- they are derived primarily from bank and Treascorporated businesses was less in 1949 than in pre- ury reports. The deposit estimates, therefore, difvious postwar years because of the curtailment of fer somewhat from the figures reported by banks net investment. The expansion of holdings by cor- and regularly published among banking statistics. porations—especially large corporations, which was The basic classifications used and method of estilarger in 1949 than in any earlier postwar year, was mating are the same as those employed previously. primarily due to the change from substantial ex- Some small revisions have been made in the estipansion to substantial contraction of inventories and mates for December 1948 and June 1943.3 customer receivables. 2 The survey data on liquid assets will be presented in a 1 A detailed description of the methods used to obtain the subsequent issue of the BULLETIN. estimates, together with the basic worksheets, may be secured 3 See Federal Reserve BULLETINS for June 1945, February from the Division of Research and Statistics, Board of Gov- 1946, November 1946,f September 1947, June 1948, and ernors of the Federal Reserve System, Washington 25, D. C. July 1949 for previously published estimates. 966 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ESTIMATED LIQUID ASSET HOLDINGS OF INDIVIDUALS AND BUSINESSES [In billions of dollars] 1939 1940 1941 1942 1943 1945 1946 1947 1948 1949 Type of holder Dec. Dec. Dec. June Dec June Dec. June Dec. June Dec June Dec. Dec. Dec. Dec.P Total i 69.0 74.7 85.4j 94.6 116.2 '137.2 156.4 175.5 195.9 212.9 227.5 228.5 231.5 237.0 238.1 241.9 Currency 5.8 6.6 8.9' 10.2 13.1 15.0 18,0 20.0 22.6 24.2 25.5 25.5 25.7 25.4 r24.6 23.9 Demand deposits 2 20.9 24.6 27.9 30.9 36.8 ^44.0 47.1 47.9 53.1 56.0 60.2 62.5 64.6 66.2 '64.5 63.8 Time deposits 26.3 26.9 26.9 26.5 27.7 29.6 32.0 35.0 39.0 43.5 47.7 50.9 53.0 55.2 56.1 56.8 Savings & loan shares 3 4.0 4.2 4.5 4.6 4 5.1 5.4 5.8 6.2 6.7 7.2 7.8 8.4 9.6 10.8 12.2 U. S. Govt. securities 4 12.0 12.4 17.2 22.4 33.8 43.5 53.9 66.8 75.0 82.5 86.9 81.8 79. 80.6 -•82.1 85.2 Business holdings—total... 19:4 22.3 25.9 29.5 39.4 49.5 55.9 62.9 67.5 72.3 73.0 69.6 66.3 64.7 '63.9 64.9 Currency 1.6 1 2.1 2.3 2 3.1 3.6 3.9 4.3 4.5 4.7 4.8 4.9 4.8 4.7 4.6 Demand deposits 12.5 15.5 16.6 18.6 21.7 27.5 28.9 29.4 31.3 33.7 33.7 34.7 33.5 33.9 r33.7 34.0 Time deposits 2.0 2.0 2.0 2.0 2.1 2.2 2.3 2.5 2.7 2.9 3.1 3.2 3.4 3.5 3.5 3.5 Savings & loan shares . 0.1 0.1 0.1 0.1 0.1 0.2 0.2 0.2 0.2 0.2 0.2 0.3 0.3 0.3 0.3 0.4 U. S. Govt. securities 3.2 3.0 5.1 6.5 12.7 16.5 20.9 26.9 29.0 31.0 31.3 26.6 24.2 22.2 21.7 22.4 Corporations—total... 13.0 15.0 17.4 19.6 27.1 34.2 38.6 43.1 44.7 47.2 45.1 41.9 38.9 38.2 38.7 40.1 Currency 0.7 0.8 0.8 0.1 0.8 0.9 0.9 0.9 0.9 0.9 1.0 1.0 1.0 1.0 1.0 Demand deposits 11.7 12.4 13.8 16.0 20.0 20.9 21.4 22.1 24.0 22.1 22.9 21.8 22.2 22.7 23.0 Time deposits 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 Savings & loan shares. .. . 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 U. S. Govt. securities. . . . 'i'.i 1.9 3.5 12.6 16.0 20.0 20.9 21.5 21.3 17.2 15.3 14.2 14.2 15.3 Financial corporations— total5 1.7 1.8 2.2 2.5 3.1 3.8 4.7 4.4 4.3 4.5 4.8 Demand deposits. . ... . .1.1 1.2 1.3 1.3 1.2 1.3 1.3 1.3 1.5 1.6 2.0 2.1 2.1 2.2 2.2 2.3 Time deposits. ........ 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 U. S. Govt. securities. . 0 5 0.5 0.8 1.0 1.2 1.4 1.7 2.0 2.2 2.4 2.7 2.5 2.2 2.0 2.2 2.4 Nonfinancial corporations —total 11.3 13.2 15.2 17.2 24.6 31.4 35.5 39.7 40.9 43.1 40.3 37.2 34.5 33.9 34.2 35.3 Currency 0.7 0. 0. 0.8 0.8 0.8 0.9 0.9 0.9 0.9 0.9 1.0 1.0 1.0 1.0 1.0 Demand deposits 8.4 10.5 11.1 12.5 14.8 18.7 19.6 20.1 20.6 22.4 20.1 20.8 19.7 20.0 20.5 20.7 Time deposits 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 Savings & loan shares 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 U. S. Govt. securities. . . . 1.4 3.3 11.2 14.3 18.0 18.7 19.1 18.6 14.7 13.1 12.2 12.0 12.9 Unincorporated business— total 6.4 7.3 8.5 12.3 15.3 17.3 19.8 22.8 25.1 27.9 27.7 27 .4 26.5 r25.2 24.8 Currency 0.9 1.0 1.3 1.5 2.0 2.3 2. 3.0 3.4 3.6 3.8 3.8 3.9 3.8 3.7 3.6 Demand deposits 3.0 3.8 4.2 4.8 5. 7.5 8.0 8.0 9.2 9.7 11.6 11.8 11.7 11.7 1 1 .0 11.0 Time deposits 1.3 1.3 1.3 1.3 1.4 1. 1.6 1.8 2.0 2.2 2.4 2.5 2.7 2.8 2.8 2.8 Savings & loan shares. . 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.2 0. 0.2 0.2 0.3 U. S. Govt. securities. . 1.1 1.1 1.6 2.2 3.1 3.9 4.9 6.9 8.1 9.5 10.0 9.4 8.9 8.0 7.5 7.1 Personal holdings—total. 49.6 52.4 59.5 65.1 76.8 '-87/. 100.5 112.6 128.4 140.6 154.5 158.9 165. 172.3 174.2 177.0 Currency 4. 4.9 6.8 7.9 10.3 11.9 14.4 16.1 18.3 19.7 20.8 20.7 20.8 20.6 19.9 19.3 Demand deposits 8.4 9.1 11.3 12.3 15.1 16. 18. 18 21.8 22.3 26.5 27.8 31.1 32.3 30.8 29.8 Time deposits 24.3 24.9 24.9 24.5 25.6 27.4 29. 32.5 36.3 40.6 44.6 47.7 49.6 51 .7 52.6 53.3 Savings & loan shares. „-.•. 3.9 4. 4.4 4.5 4. 4.9 5. 5.6 6.0 6. 7.0 7. 8.1 9 3 10.5 11.8 U. S. Govt. securities. . . . 8.'8 9. 12.1 15.9 21.1 27.0 33.0 39.9 46.0 51.5 55.6 55.2 55.6 58.4 '60.4 Trust funds—total6. 5.6 6.2 6.9 8.4 10.0 11.7 13.4 14.7 15.9 17.8 19. 21.6 22.9 23.9 Demand deposits 1.3 1.4 1.3 1.2 1. 1.3 1.3 1.4 1.5 1.6 1.8 1. 1.6 1.6 1.5 Time deposits 0.3 0.3 0.2 0.2 0. 0.2 0.2 0. 0.2 0.2 0.3 0.3 0.3 0.5 0.5 Savings & loan shares. 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0. 0.2 0.2 0.2 U. S. Govt. securities. 4.6 5.4 6.9 10.1 11. 12.9 14.0 15.6 17.2 19.5 20.6 21.7 Other personal—total 7. . , 45. 47. 53.9 58.9 69.9 r79.3 90.5 100.9 115.0 125 .9 138.6 141.1 145.8 150.7 r151.3 153.1 Currency 4. 4.9 6.8 7.9 10.3 11.9 14.4 16.1 18.3 19. 20.8 20. 20.8 20 .'6 1 9 .9 19.3 Demand deposits 7.2 7.8 9.9 11.0 13 15.3 16.9 17 20.4 20.8 24.9 26.0 29.4 30. 29. 28.3 Time deposits 24.1 24.6 24.6 24.3 25.4 27.2 29.5 32.3 36.1 40.4 44.4 47.4 49.3 51.4 52.1 52.8 Savings & loan shares. 3.9 4.1 4.4 4.4 4.6 4.8 5.1 5.' 5.9 6.4 6.9 7.4 7.9 9.1 10.3 -11.6 U. S. Govt. securities. 5.7 6.3 8.2 11.3 15 20.1 24.6 29.8 34.3 38.6 41.6 39.6 38. 38.9 '39.8 41.1 r Revised. P Preliminary. ^Figures for banks, insurance companies, savings and loan associations, nonprofit associations, foreigners, and governmental bodies and agencies are not included in the totals shown. 2 These figures are estimates of demand deposit balances, as they would appear on the records of depositors. They differ from figures based on bank records such as given in regular banking statistics. Depositor-record estimates are lower than bank-record estimates; for example, total demand deposits as of Dec. 31, 1949 on a holder-record basis (see table) amounted to 63.8 billion dollars while on a bank-record basis these deposits amount to 77.9 billion. This is because checks are constantly in the mail, i. e., deducted on a payor's records and not yet added on payee's records, and because checks are constantly in the process of collection, i. e., added to payee's deposits as per bank records and not yet deducted from payor's deposits as per bank records. 8 Private share capital in all operating savings and loan associations including private repurchasable shares, deposits, and investment certificates. 4 Includes outstanding amounts of excess profits tax refund bonds beginning December 1945, as follows, in millions of dollars: 1128; 58; 29; 12; 7; 4. Armed forces leave bonds are included beginning December 1947, as follows, in millions of dollars: 767; 464; 343. 5 Includes real estate companies, finance and credit companies, insurance agencies (not carriers), investment trusts, security brokers and dealers, holding companies not otherwise classified, etc. 6 7 I I n n c c l l u u d d e e s s h o o n l l d y i a n m gs o of u f n a ts r m ad e m rs a in nd is p t r e o r f e e d s b s y i /c o o n r al p p o e r r a s te o t n r s. ustees. 967 AUGUST 1950 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE NATIONAL ADVISORY COUNCIL ON INTERNATIONAL MONETARY AND FINANCIAL PROBLEMS OCTOBER 1, 1949-MARCH 31, 1950 The report given below was transmitted by the 1, 1945, through December 31, 1949, gold and Vresident to Congress on July 25, 1950. In addi- short-term dollar resources of foreign countries, and tion to the text reprinted here, the report contains membership and resources of the International several charts and appendixes. The appendixes con- Monetary Fund and the International Ban\ for tain detailed information on postwar United States Reconstruction and Development. Copies of the Government financial assistance to foreign countries,full report may be obtained from the National Adgold transactions between the United States and visory Council on International Monetary and other countries covering the five-year period JanuaryFinancial Problems, Washington 25, D. C. I. ORGANIZATION OF THE COUNCIL STATUTORY BASIS mission, acting in consultation with the Council, to The National Advisory Council on International suspend the exemption of International Bank se- Monetary and Financial Problems was established curities from the Securities Acts. by the Congress in the Bretton Woods Agreements The relevant portions of the Bretton Woods Act (59 Stat. 512, 22 U.S.C. 286b), approved July Agreements Act, the Foreign Assistance Act of 31, 1945. The statute directed the Council to co- 1948, and amendments to the National Bank Act ordinate the policies and operations of the repre- and the Bretton Woods Agreements Act are presentatives of the United States on the International sented in Appendix A.1 Monetary Fund and the International Bank for Reconstruction and Development, the Export-Im- REPORTS port Bank of Washington, and all other agencies of Since its first meeting on August 21, 1945, the the Government "to the extent that they make or Council has submitted 11 formal reports, including participate in the making of foreign loans or entwo special biennial reports on the operations and gage in foreign financial, exchange or monetary policies of the International Monetary Fund and transactions." The Council was also directed to the International Bank.2 The present report covers advise and consult with the President and the the activities of the Council from October 1, 1949, United States representatives on the Fund and the to March 31, 1950. Bank on major problems arising in the administration of the Fund and the Bank; and to recommend to the President general policy directives for MEMBERSHIP the guidance of the representatives of the United The members of the Council, according to law, States on the Fund and the Bank. The Council was given certain additional duties with regard to 1 Appendixes are omitted here but are part of the complete the economic assistance program, and the Bretton report submitted to Congress. 2 The two special reports were transmitted by the President Woods Agreements Act was amended by Section to the Congress on May 17, 1948 (H. Doc. No. 656, 80th 106 of the Foreign Assistance Act of 1948 (62 Stat. Cong., 2d sess.) and May 31, 1950 (H. Doc. No. 611, 81st Ch. 169, 22 U.S.C. 286b (a)), approved April 3, Cong., 2d sess.). The remaining reports were transmitted 1948, to include the Administrator for Economic on Mar. 1, 1946 (H. Doc. No. 489, 79th Cong., 2d sess., subsequently included as Appendix B to H. Doc. No. 497, Cooperation as a member of the Council for the 79th Cong., 2d sess.); Mar. 8, 1946 (H. Doc. No. 497, duration of this office. 79th Cong., 2d sess.); Jan. 13, 1947 (H. Doc. No. 53, 80th In June 1949, the Bretton Woods Agreements Act Cong., 1st sess.); June 26, 1947 (H. Doc. No. 365, 80th Cong., 1st sess.); Jan. 19, 1948 (H. Doc. No. 501, 80th Cong., and the National Bank Act were amended (63 2d sess.); Aug. 3, 1948 (H. Doc. No. 737, 80th Cong., 2d Stat. 298, 12 U.S.C. 24, 22 U.S.C. 286k-l, 286k-2), sess.); Mar. 14, 1949 (H. Doc. No. 120, 81st Cong., 1st to permit wider dealing in and underwriting of sess.); July 5, 1949 (H. Doc. No. 250, 81st Cong., 1st sess.); International Bank securities and to exempt such and Jan. 20, 1950 (H. Doc. No. 450, 81st Cong., 2d sess.). [The texts of most of these reports have been published in the securities from the Securities Acts. The legislation Federal Reserve BULLETIN shortly after submittal to Conalso authorized the Securities and Exchange Com- gress.] FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE NATIONAL ADVISORY COUNCIL during the period under review, were the following: TABLE I The Secretary of the Treasury, John W. Snyder, UNITED STATES BALANCE OF PAYMENTS Chairman. JULY 1, 1945-DECEMBER 31, 1949 The Secretary of State, Dean Acheson. [In millions of dollars] The Secretary of Commerce, Charles Sawyer. Means of financing The Chairman of the Board of Governors of the Total Th F E e e x d p C e o r h r a t a - l i I r m R m e p a s o n e r r t v o e f B S a t n y h s k e t , e m B H o , e a r T r b d h e o r m t o f a E s D . B i G re . a c M s t t o o c r n C s . a o be f . the Period o s e e f x r a g p v n o o i d c o r e t d s s s o i s m e f T r a g p o v n o o t i d c a o r l e t d s s s s G o U (n u o . e r v c t S ) t e . i . s g L a t o d i i s q l o o s d u n e l l i t a a d s o n r a f 2 d - Other 3 The Administrator for Economic Cooperation, Paul G. Hoffman. Total postwar 74,786 39,466 25,463 6,099 3,758 1945—July-Dec... 7,201 4,143 3,629 * -1,077 506 By agreement, the following served as alternates: 1946—Jan.-June.. 7,235 3,328 2,569 823 515 William McChesney Martin, Jr., Assistant Secretary July-Dec... 7,506 3,635 2,408 1,109 354 of the Treasury. 1947—Jan.-June.. 10,068 4,091 3,327 2,378 272 July-Dec... 9,728 4,198 2,515 2,084 931 Willard L. Thorp, Assistant Secretary of State for 1948—Jan.-June.. 8,806 4,980 2,302 854 670 Economic Affairs. July-Dec... 8,286 5,376 2,766 4 _74 218 Thomas C. Blaisdell, Jr., Assistant Secretary of 1949—Jan.-June.. 8,765 4,968 3,337 364 96 Commerce. July-Dec... 7,191 4,747 2,610 4 -362 196 M. S. Szymczak, Member of the Board of Governors 1 Data on U. S. Government sources (net) presented in this table differ from U. S. Government aid in Table IV and the statistical of the Federal Reserve System. appendix for the following reasons: Hawthorne Arey, Vice Chairman of the Board of (a) Data in the above table are net of unilateral transfers to the United States, capital repayments, etc., whereas gross data appear Directors of the Export-Import Bank. in Table IV. (b) Pensions, annuities, claims of individuals, etc., are included William C. Foster, Deputy Administrator, Eco- in this calculation of net sources, but are excluded in Table IV. (c) Included in the calculation of net sources are lend-lease nomic Cooperation Administration. shipments and merchant ship deliveries, whereas aid appearing in Table IV is based on lend-lease billings and mortgages signed, both of which lag. As a result of these lags, net source figures re- C. Dillon Glendinning is the Secretary of the ported for the earlier period in the above table exceed those appear- Council. ing 2 F in ig u T r a e b s le in I t V h . is table differ from those which could be derived from Table V principally because Table I includes gold sold out The United States Executive Directors of the of current production abroad, as well as liquidation of existing foreign holdings. International Monetary Fund, Frank A. Southard, 3 Includes dollar disbursements by the International Monetary Fund and the International Bank, U. S. net private remittances, Jr., and of the International Bank for Reconstruc- U. S. net private long- and short-term capital outflow, and errors tion and Development, William McChesney Martin, and 4 N om et is f s o i r o e n ig s. n acquisition of dollar assets and purchases of gold Jr., or their Alternates, regularly attended the meet- from the United States, resulting from an excess of means of financing over exports. ings of the Council. Source: U. S. Department of Commerce. II. UNITED STATES BALANCE OF PAYMENTS IN THE POSTWAR PERIOD A basic concern of foreign nations in the postwar UNITED STATES FOREIGN TRADE period has been that of the means of financing re- United States exports of goods and services, alquired imports from the United States. Between ready at a high level, reached a postwar peak in the July 1945 and December 1949, total United States middle of 1947, and subsequently declined rather exports of goods and services amounted to 74.8 steadily. Imports reached their high point in the billion dollars, while total imports amounted to latter part of 1948, dropped somewhat in 1949, but 39.5 billion dollars, or 53 per cent of that figure. increased again in the early part of 1950. In each The remainder of the necessary financing was postwar year through 1949, however, the excess of provided chiefly from United States Government United States exports over imports has been over sources, largely credits and grants, of 25.5 billion 6 billion dollars. dollars, or 34 per cent, and liquidation of foreign United States exports of goods and services in gold and dollar assets of 6.1 billion dollars, or 8 1949 amounted to 16.0 billion dollars as compared per cent. These three main components of the with imports of 9.7 billion dollars. As indicated in balance of payments—foreign trade, Government Table II, the surplus of United States exports over aid, and changes in gold and dollar assets—are dis- imports was narrowed to an annual rate of 4.4 bilcussed briefly in the following sections. lion dollars in the fourth quarter of 1949 while in AUGUST 1950 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE NATIONAL ADVISORY COUNCIL TABLE II The United States share of world merchandise exports has increased both in quantitative and in UNITED STATES EXPORTS AND IMPORTS OF GOODS AND SERVICES value terms above prewar levels, our exports during JULY 1, 1945-MARCH 31, 1950 1949 accounting for about one-fifth of total world [Quarterly figures in millions of dollars] exports and our imports amounting to about oneeighth of world imports. While this country is Period Exports Imports of exports presently the greatest single exporting nation in the world, the Western European countries, most of Total postwar 77,976 42,003 35,973 which are participants in the European Recovery 1945—six months 7,201 4,143 3,058 Program, accounted for about one-third of total world exports in 1949 and about two-fifths of world July-Sept 3,851 2,248 1,603 3,350 1,895 1,455 imports. The percentage of foreign trade to the Oct.-Dec 14,741 6,963 7,778 gross national product, moreover, is relatively small 1946—total for the United States as compared with other major 3,338 1,677 1,661 Jan.-Mar 3,897 1,651 2,246 trading nations. A Ju p ly r. - - S Ju ep n t e 3 3, , 7 7 2 8 2 4 1 1 , , 7 8 6 7 4 1 2 1 , , 0 85 20 1 One of the salient features of changes in world Oct.-Dec 19,796 8,289 11,507 trade during the postwar period, as compared with 1947—total.... prewar, has been the increased amount of trade Jan.-Mar 4,800 1,988 2,812 Apr.-June 5,268 2,103 3,165 between the United States and other nations of the J O u c ly t. - - S D e e p c t . 4 4 , , 8 8 3 9 0 8 2 1 , , 2 98 1 6 2 2 2 , , 8 6 4 8 4 6 Western Hemisphere. Another factor, which has represented a shift in the postwar world trading 1948—total. . 17,092 10,356 6,736 pattern as compared with prewar, has been the J A a p n r . . - - M Ju a n r e . 4 4 , , 3 4 2 8 2 4 2 2 , , 4 4 9 8 2 8 1 1 , , 9 8 9 3 2 4 decline in the positions of both Germany and Japan July-Sept 4,029 2,735 1,294 as major trading nations. In addition, a number Oct.-Dec 4,257 2,641 1,616 of other countries, severely affected by the war, 1949—total. . . 15,956 9,715 6,241 Jan.-Mar 4,323 2,550 1,773 TABLE III Apr.-June 4,442 2,418 2,024 July-Sept 3,685 2,346 1,339 Oct.-Dec 3,506 2,401 1,105 DISTRIBUTION OF TOTAL WORLD TRADE, POSTWAR, AND PREWAR, BY GEOGRAPHIC AREA1 1950—Jan.-Mar 3,190 2,537 653 [Values expressed in millions of U. S. dollars] Source: U. S. Department of Commerce. the first quarter of 1950 the difference was further EXPORTS (F.O.B.) reduced to an annual rate of 2.6 billion dollars per 1949 1938 year. This sharp decline may not continue through Area 1950. Nevertheless, it compares with the 1948-49 Amount Per cent Amount Per cent average excess of United States exports over imports of 6.5 billion dollars. Thus, the change in World total $57,129 100.0 $22,137 100.0 trade since September 1949 has had the effect, at United States 12,028 21.0 3,122 14.1 Other Western Hemisphere 9,243 16.2 2,850 12.9 least temporarily, of sharply reducing the over-all trade deficit of foreign countries with the United Eu I r n o tra p - e EuroPean trade.... 2 9 2 , , 7 9 3 6 6 0 4 1 0 7. . 0 2 1 5 1 , , 2 0 5 3 6 1 4 23 9 . . 7 8 States. Other European trade.... 13,224 23.2 5,775 26.1 The period between September 1949 and March Far East and Oceania 8,050 14.1 3,832 17.3 Africa and Middle East. . . 4,848 8.5 1,302 5.9 1950 is too short to permit an appraisal of the ultimate effects of the currency devaluations which oc- IMPORTS (C.I.F.) curred in the fall of 1949. It is also difficult to separate, statistically, the effects of devaluation on World total 62,709 100.0 24,863 100 0 the foreign trade of the United States from the United States . . 7,529 12.0 2,203 8.9 effects of measures to conserve dollar exchange, Other Western Hemisphere 9,160 14.6 2,714 10.9 such as exchange and import restrictions and bi- Europe 29,887 47.7 14,249 57.3 lateral trade agreements. The devaluation of for- Intra-European trade.. . . 10,071 16.1 5,808 23.4 Other European trade.. .. 19,816 31.6 8,441 33.9 eign currencies vis-a-vis the dollar was responsible, Far East and Oceania 9,139 14.6 3,840 15.4 at least in part, for an improvement in the balance- Africa and Middle East. . . 6,994 11.1 1,857 7.5 of-payments position of the devaluing countries, including the ERP countries, which were able to 1 Merchandise only (excluding services). increase the volume of their merchandise exports. Source: International Monetary Fund and Economic Cooperation Administration. 970 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE NATIONAL ADVISORY COUNCIL have been unable to supply their needs through ex- prewar years, greater use was made of the ships of ports but have, in part, been dependent on foreign other countries than of those of the United States. aid to maintain subsistence. The Western Eu- During the early postwar period, American shipropean countries imported the products of the West- ping earnings were high because foreign nations ern Hemisphere to a greater extent than in the had not wholly repaired war shipping losses, while prewar period. The change in the pattern of world United States tonnages had substantially increased. trade in the postwar period is reflected in Table III. The larger participation of United States vessels in In the early postwar period, the demand of war- the carriage of American foreign trade and the devastated countries was largely for consumption large excess of United States exports over imports goods. Later there was a shift in emphasis to re- contributed to high shipping earnings. However, construction and recovery programs, and the de- more recently a greater proportion of United States mand for capital goods increased, although many overseas trade has been carried in foreign ships. countries have continued their demands for con- Other invisibles, particularly the foreign travel of sumption goods. Important United States exports American citizens, are of significance in financing include machinery, iron and steel manufactures, United States exports. textiles, and such agricultural products as wheat and cotton. Major imports include newsprint, FOREIGN AID coffee, certain ores and metals, natural rubber, wool, As pointed out in the preceding Report of the and vegetable oils. The most important shift in Council, funds authorized and appropriated for the the postwar foreign trade of the United States has immediate postwar programs of assistance were subbeen the tendency for this country to run a food stantially exhausted by mid-1948. By that time, the export surplus, whereas in the prewar period the European Recovery Program had swung into oper- United States was a net importer of food. How- ation. In addition, there were continuing programs ever, it should be noted that the United States had of aid such as that provided under Government and abnormal exports in the early postwar years, par- Relief in Occupied Areas. The normal lending ticularly in 1947, because of the transition abroad activities of the Export-Import Bank were continued from a wartime to a peacetime economy, when non- throughout the postwar period. The Mutual Derecurring United States exports of such items as fense Assistance Program, military-economic in coal and certain agricultural products were essential nature, was approved in October 1949, and shipto foreign economic recovery. Illustrative of this ments were begun in March 1950. During the was the export of bituminous coal to certain areas latter part of 1949, there was some decline in the of Europe which normally were able to meet their aggregate amount of foreign aid. However, United requirements from European sources. But the re- States Government foreign aid has not varied turn to a closer balance in conditions of supply and greatly in amount, averaging about 5.8 billion doldemand which was in evidence during 1949 was lars per year since July 1945. reflected in a decreased flow of United States ex- The total of United States Government foreign ports, particularly during the latter part of 1949. aid, utilized during the period between July 1, 1945, Invisibles, such as shipping and the foreign and December 31, 1949, amounted to 25.9 billion travel of American citizens, constitute a major com- dollars of which grants constituted approximately ponent of the foreign trade of the United States. In three-fifths, or 15.7 billion dollars and credits twofifths, or 10.2 billion dollars (see Table IV). Almost TABLE IV three-fourths (18.5 billion dollars) of total assist- UNITED STATES GOVERNMENT FOREIGN AID UTILIZED ance had been provided to ERP participants, with JULY 1, 1945-DECEMBER 31, 1949 Asia the geographical area receiving the next largest BY GEOGRAPHIC AREA share (4.6 billion dollars). The predominance of [In millions of dollars] grant assistance during the past two years is ap^ Area Total Grants Credits parent from the fact that utilized grant assistance amounted to 4.0 billion dollars in 1948 and 5.2 Total, all areas 25,932 15,688 10,244 billion dollars in 1949, as compared with utilized Total, Europe 20,122 11,236 8,886 credit assistance of 1.6 billion dollars and 700 million dollars in 1948 and 1949, respectively. ERP participants 18,539 10,121 8,418 Other Europe 1,583 1,115 468 FOREIGN GOLD AND DOLLAR RESERVES Asia 4,567 3,786 781 Latin America 398 33 365 As indicated above, the two principal means of All other 845 633 212 financing United States exports have been the payments accruing to foreigners as the result of United Source: U. S. Department of Commerce. 971 AUGUST 1950 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE NATIONAL ADVISORY COUNCIL States imports, and the provision of United States changing the direction of the flow of gold and short- Government aid in the form of loans and grants. term capital between the United States and foreign A third important means of financing balance of countries. For the six-month period ending on payments deficits has been through the use of for- March 31, 1950, foreign countries increased their eign gold and dollar resources. The reserve posi- gold and short-term dollar holdings, through transtion of foreign countries had declined by about 4.8 actions with the United States, by more than the billion dollars from June 30, 1945, through De- losses which they had sustained during the first cember 31, 1948 (see Table V). On December 31, three quarters of 1949. In addition to these gains, the reserves of foreign countries were also aug- TABLE V mented by new gold production. ESTIMATED FOREIGN GOLD AND SHORT-TERM DOLLAR BALANCES, JUNE 30, 1945-DECEMBER 31, 1949 x UNITED STATES INVESTMENTS ABROAD By GEOGRAPHIC AREA From the end of 1945 to the end of 1949, United [In millions of dollars] States private investments abroad increased nearly End of year one-third or about 4.6 billion dollars. Over the June Area 30 same period United States Government investments 1945 1946 1947 1948 1949 —a large part of which were directed to the European countries—rose from 2.1 billion to 13.5 Total, all areas 19,71719,34715,12814,86715,214 billion dollars.4 A large part of the additional post- Total, Europe 11,22410,799 8,545 8,438 8,479 war private investment was made up of reinvested ERP participants 2 10,195 9,695 7,542 7,630 7,757 earnings. Such income was largely derived from Other Europe 3 1,029 1,104 1,003 808 722 overseas petroleum production and from American Latin America 3,625 3,642 2,877 2,744 3,054 Asia and Oceania 2 2,291 2,321 2,081 2,187 2,044 manufacturing and mining enterprises in foreign All other 2,577 2,585 1,625 1,498 1,637 countries. 1 Excludes holdings of the International Monetary Fund, the International Bank, and other international organizations; also TABLE VI excludes U. S. S. R. gold holdings. 2 Including dependencies except for Indonesian holdings which UNITED STATES INVESTMENTS ABROAD IN THE POSTWAR are 3 I in n c c l l u u d d e e d s i g n o l A d s h ia e l a d n d b y O T ce r a ip n a ia r . tite Commission for the Restitu- PERIOD tion of Monetary Gold. [In billions of dollars] Source: Treasury Department and Board of Governors of the Federal Reserve System. End of year Type of investment 1949, the estimated gold and short-term dollar 1945 1946 1947 1948 1949 holdings of foreign countries, excluding the gold holdings of the U.S.S.R., amounted to 15.2 billion Total 16.8 20.7 29.0 31.3 32.8 dollars as compared with 14.9 billion dollars at the Private 14.7 15.6 17.0 18.3 19 3 end of 1948. The increase during 1949 of about U. S. Government 2.1 5.1 12.0 13.0 13.5 350 million dollars in monetary reserves represented a marked reversal of the previous postwar trend.3 Private United States investments abroad are In recent years, the acquisition of gold by the United predominately long-term, and include a large pro- States has generally been in excess of annual world portion of direct investments. United States Govgold production. However, it may be noted that ernment investments abroad have resulted mainly the flow of gold for settling balance-of-payments from the extension of loans and credits and are thus deficits could not be continued at this rate since also very largely long-term. United States private few countries are substantial producers of gold and few have had gold and dollar resources adequate investment in ERP countries increased very little to serve as currency reserves and as working bal- in the postwar period, and presently constitutes ances for international transactions. about 20 per cent of total private investment abroad. Devaluation has been responsible, in part, for On the other hand, United States Government investment in ERP countries has increased much 3 The net difference between the 6.1 billion dollars referred more rapidly than in the rest of the world, and to earlier as constituting liquidation of gold and dollar assets comprises about 60 per cent of public investment between July 1, 1945, and Dec. 31, 1949 (see Table I) and the 4.5 billion dollar reduction in foreign gold and dollar abroad. balances indicated in Table V is largely accounted for by sales of gold to the United States out of current foreign 4 Exclusive of World War I debts, which are likewise gold production. excluded from Table VI. 972 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE NATIONAL ADVISORY COUNCIL While the recent devaluations tended to reduce and thereafter decline to a level somewhat in excess the transfer problem with respect to private equity of 400 million per year. investment, they had a tendency to increase the local Foreign assets in the United States have varied currency burden of servicing debt denominated in very little in the aggregate in the postwar period, fluctuating around a level of about 17.0 billion dollars. This particularly affects ERP countries dollars. These holdings mainly consist of shortwhere most of the debts owing to the United States term assets, such as dollar deposits and United Government are concentrated. .The total foreign States Government securities with short maturities. debt service owing to the United States Government As of December 31, 1949, American-owned assets on existing loans will increase from about 300 mil- in foreign countries exceeded foreign-owned assets lion dollars in 1950 to about 500 million in 1952, in the United States by more than 15 billion dollars. III. ACTIVITIES OTHER THAN THOSE RELATING TO THE INTERNATIONAL MONETARY FUND AND THE INTERNATIONAL BANK EUROPEAN RECOVERY PROGRAM billion dollars, in addition to which it was re- Appropriation request and proposed method of allo- quested that any balances unobligated as of June cation for ERP, fiscal year 1951. During February 30, 1950, or the subsequent release of obligations 1950, the Council concurred in ECA's proposal that (estimated at about 150 million dollars) be made approximately 3 billion dollars should be recom- available for obligation through the fiscal year mended to the Congress as the appropriation re- 1951. Of this total appropriation request, it was quest for the European Recovery Program for the proposed that about 600 million be reserved to fiscal year 1951. In determining its appropriation provide^for the liberalization of European trade request for this period, the ECA had based its and payments, including the establishment of a calculations on a consolidated balance-of-payments European Payments Union, while the remaining projection for the recipient countries as a group, funds would be primarily for direct country aid. including an evaluation of commodity import pro- In the ECA presentation to the Congress, it was grams. The estimated dollar requirements repre- stated that the main function of the proposed EPU sented roughly 75 per cent of the 3.9 billion dollars would be "the development of transferability of in appropriation and authorization ECA had re- European currencies and to promote the liberceived for the fiscal year 1950. alization of trade by participating countries with one another and with other countries." 5 During the first two years of the European Recovery Program aid to the individual countries was ECA grants and loans. As indicated in Table VII, based upon the amounts indicated as necessary to the bulk of ERP assistance has been in the form of restore and improve levels of internal production grants. Moreover, the bulk of ECA loans, amountand consumption. In anticipation of the tapering- ing to about 1 billion dollars, was negotiated duroft* of the program to its end on June 30, 1952, pro- ing the first year of the program. In the fiscal posed allocations of assistance for the fiscal year year 1949, funds equal to that amount were avail- 1951 were based on proportionate shares of the able only for the purpose of making loans or guaramounts previously allotted to the individual anties. The Council considered that assistance for countries. Also, it was planned that a central re- the fiscal years 1950 and 1951 should be predomserve fund would be set aside to be utilized in con- inantly on a grant basis but recommended that the nection with the proposed European Payments Administrator for Economic Cooperation seek dis- Union and in other ways to contribute to the cretionary authority with respect to the total liberalization of trade in Europe. amount appropriated for the program (exclusive The over-all estimate of ECA appeared reason- of the amount provided for guaranties) to extend able in the light of anticipated dollar requirements for the recipient countries as a group for the fiscal 5 On June 5, 1950, President Truman signed the Foreign year 1951. It was recognized that there would be Economic Assistance Act of 1950, which included authorization of new appropriations of 2.7 billion dollars for convariation in performance among countries, as in tinuation of the European Recovery Program for the fiscal the past, with the possibility of corresponding year 1951. In addition, funds previously appropriated for fluctuations in reserves of the individual recipient ERP and unobligated as of June 30, 1950 (as well as funds countries. subsequently released from obligation), were authorized for obligation in the fiscal year 1951. Furthermore, the authori- Proposed legislation was submitted by ECA to zation of 150 million dollars for guaranties, contained in provide funds for the fiscal year 1951 totalling 2.95 the 1949 legislation, was increased to 200 million. AUGUST 1950 973 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE NATIONAL ADVISORY COUNCIL such assistance either on a grant or a loan basis. settle each deficit bilaterally with each other but This action was designed to preserve Europe's would settle only their multilateral deficit with the capacity to borrow through normal investment Union, which would generally be smaller than the channels in the post-ERP period. sum of their bilateral deficits. To discourage ex- For the fiscal year 1950, the Congress authorized cessive multilateral surpluses and deficits, the 150 million dollars for the purpose of extending Union would require creditors to settle part of loans to participating countries, a reduction from their surpluses with long-term loans to the Union, the 1 billion dollars of funds set aside for loan or and debtors to settle part of their deficits with the guaranty authority for the fiscal year 1949. As of Union in gold or dollars. Furthermore, a Board March 31, 1950, the Council had approved pro- of Governors would have authority to adjust the posals by the Administrator for Economic Cooper- working of these settlements arrangements and to ation for allocations of new loans in the amount of use other means to induce countries to maintain approximately 106 million dollars for the fiscal a reasonable balance with the Union as a whole." 6 year 1950, and it was anticipated that the Admin- In its review of the proposal, the Council conistrator would shortly propose another allocation sidered that, in the establishment of the proposed of the residual amount of the 150 million dollars Union, its operations should not conflict with obliauthorized for loans, amounting to about 44 mil- gations undertaken by the United States and other lion. member governments to the International Mone- European Payments Union. During February tary Fund and that the establishment of the Union 1950, the EC A outlined to the Congress certain on the regional basis proposed should not prevent details with respect to the proposed European Pay- any one participating country or group of particiments Union. The major objectives of the pro- pating countries from moving as rapidly as possible posed Union, which is intended to replace the toward currency convertibility and economic inteexisting Intra-European Payments Plan, were gration independently of the rate of progress of stated by EC A as follows: other members of the proposed Union. "The replacement of bilateral by multilateral Local currency accounts. As outlined in previous reports of the Council, participating countries retrade would be accomplished through a clearing ceiving assistance in the form of grants from ECA system which would permit each member to offset a deficit against any one member with a surplus 6ECA Budget Estimate, July 1, 1950—June 30, 1951, P. II, against any other. Countries would not have to pp. 13 and 14. TABLE VII ECA ALLOTMENTS TO PARTICIPATING COUNTRIES, APRIL 3, 1948-MARCH 31, 1950, BY TYPE OF AID [In millions of dollars] Total allot- Loans, grants, and conditional aid Total ments, loans, April 3, 1948-June 30, 1949 Country allotments grants and Apr. 3, 1948- conditional aid Mar. 31, 1950 M Ju a ly r. 1 3 , 1 , 1 9 19 4 5 9 0 - Total Loans Grants Cond ai i d tional All ERP countries 8,984.9 3,031.9 5,953.0 972.3 4,209.3 771.4 United Kingdom 2,417.9 798.2 1,619.7 322.7 963.0 334.0 France and DOT 1,894.1 580 7 1,313.4 172.0 1,131.7 9.7 Italy 1,007.0 339.0 668.0 67.0 553.7 47.3 Germany (Fed. Rep.)1. 873.7 260.2 613.5 516.1 97.4 Netherlands and DOT 824 1 253 0 571 1 146 7 413.1 11.3 Belgium-Luxembourg and Belgian DOT 481.4 220.0 261.4 50.9 3.0 207.5 Austria 429 4 149 4 280 0 276.9 3.1 Greece. . 316 0 124 3 191 7 191 7 Denmark 197.0 70.8 126.2 31.0 90.1 5.1 Norway 182 0 80.9 101.1 35.0 49.6 16.5 Ireland 121 6 35 3 86 3 86 3 Turkey. 90.2 41.2 49.0 38.0 11.0 Sweden 88 0 42 6 45 4 20 4 25.0 Trieste.. 27 3 9 4 17.9 17.9 Portugal and DOT 22 0 22 0 Iceland 13.2 4.9 8.3 2.3 2.5 3.5 1 ECA allotments exclude funds for government and relief in occupied areas. Source: Economic Cooperation Administration. 974 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE NATIONAL ADVISORY COUNCIL are required to deposit their own currencies in Foreign Assistance Act of 1948 (as amended). special accounts in amounts commensurate with Ninety-five per cent counterpart. The purposes the dollar costs of the grant aid received. There for which 95 per cent counterpart funds have been is no obligation to deposit local currency counter- used may be summarized briefly as follows: part where countries receive assistance in the form A. For monetary and financial stability. In the of loans. Where assistance has taken the form of United Kingdom and Norway, counterpart releases conditional aid, the country receiving EGA dollars have been made supporting the financial stabilizahas placed at the disposal of other participants its tion programs of those countries. Counterpart currency in the form of drawing rights. The coun- funds were released to cancel government obligatry receiving the drawing rights has made a com- tions to the central bank, which cancellation remensurate deposit in a special local currency ac- sulted in a desirable reduction in the volume of count. circulating media in those countries. Furthermore, Recipient countries make deposits in the special where releases were made to finance investment local currency accounts after notification by EGA, programs, consideration was given to the impact using conversion rates which are either the par of such releases on the achievement and maintevalues agreed to by the International Monetary nance of monetary and financial stability, and the Fund, or, where the country has no par value, a releases were frequently made in connection with rate mutually agreed upon by EGA and the partici- the taking by the participating countries concerned pating country. of measures designed to further financial stability. During the six-month period ending March 31, B. For capital investment and promotion of pro- 1950, the Council reviewed requests for the release duction. In France, counterpart funds were used of counterpart funds in Austria, Belgium, Western to finance investments in important areas of the Germany, France, Italy, the Netherlands, and Nor- French economy, including the coal, steel, transway. The Council had previously reviewed re- portation, electric power, and manufacturing inleases for all of these countries except Belgium and dustries, and in agriculture. In Western Germany, Western Germany. Table VIII shows, as of March capital investment loans were made out of. counter- 31, 1950, the status of counterpart funds under the part funds to finance power developments, coal TABLE VIII STATUS OF EUROPEAN LOCAL CURRENCY COUNTERPART FUND ACCOUNTS UNDER PUBLIC LAW 472, MARCH 31, 1950 [Dollar equivalents of local currency, in millions] Adjusted dollar equivalents of deposits 1 For (9 u 5 se p b e y r c re e c n i t p p ie o n r t t io co n u ) ntries Country receiving grant Total f 5 o U r S p e n t u a r i s t t e e e c s d e b n y t 9 f c o r 5 e o r c p u u i e n p s r t i e r e c i n e e b s t n y t w A it p h p f d r o r o r a v w ed al Withdrawals B d a e l p o a o n n s c i e t s All countries. . . 5,113.0 236.8 4,876.2 3,380.7 3,157.5 1,718.7 France 1,479.8 64.3 1,415.5 1,353.4 1,353.4 62.1 United Kingdom 1,296.0 60.8 1,235.2 787.2 787.2 448.0 Germany (Fed. Rep.). . . 574.7 27.0 547.7 375.6 373.0 174.7 Italy 469.6 24.1 445.5 206.5 80.1 365.4 Netherlands 2. 369.4 18.1 351.3 162.9 162.9 188.4 Austria 317.9 14.9 303.0 187.4 169.0 134.0 Greece. . . 288.2 12.5 275. 219.0 143.4 132.3 Norway. . 163.7 7.2 156, 73.5 73.5 83.0 Denmark. 107.4 5.5 101.9 <*) CO 101.9 Turkey.. 18.6 0.9 17.7 17.7 Trieste. . 16.0 0.8 15.2 15.2 15.0 0.2 Portugal. 4.1 0.2 3,9 3.9 Ireland. . 3.0 0.2 2.8 2.8 Belgium. 2.7 0.2 2.5 2.5 Iceland.. 1.9 0.1 1.8 1.8 * Less than $50,000. 1 Local currency is deposited in the special counterpart accounts at the agreed upon rates in effect at the time dollar funds were actually expended by ECA. Withdrawals of part of these local currency funds were made, however, at times when the conversion rates were different from those in effect at the time of deposit. The adjusted dollar equivalent of deposits represents the sum of withdrawals (calculated at the conversion rates in effect at the time of withdrawal) plus balances on hand (calculated at the current conversion rate). 2 Includes Indonesia. Source: Economic Cooperation Administration. 975 AUGUST 1950 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE NATIONAL ADVISORY COUNCIL mines, agricultural rehabilitation and development, contracting guaranties), totalling $4,550,000; and and a wide variety of industries, especially dollar- 63 applications for informational media guaranties saving and dollar-earning industries. In Austria, valued at $10,254,510. releases were made for capital investments in essen- Through March 31, 1950, fees collected for the istial industries and agriculture. In Italy, counter- suance of informational media guaranties amounted part funds were used to promote agricultural de- to about $37,000. Dollar disbursements made purvelopment, for rehabilitation of the railroad sys- suant to applications for the conversion of foreign tem, and for other essential investments. In currencies under such guaranties totalled some Trieste, counterpart was used to make loans for $567,500. With respect to industrial guaranties, shipbuilding, Trieste's chief industry, and for fees collected amounted to about $59,000, but no other industrial and commercial purposes. In dollar disbursements were made. Greece, counterpart funds were utilized for the As indicated in the previous Report of the Counrehabilitation of agriculture, transportation, other cil, the Economic Cooperation Act of 1948 was utilities, and essential industrial plants. In the amended and liberalized in 1949 to allow United Netherlands, the greater part of counterpart funds States firms securing guaranties for new industrial released was for land reclamation, agricultural re- and commercial investments in participating counsearch and development, waterways and harbors, tries to convert receipts into dollars during the life etc. The Council concurred in the release of coun- of the guaranty up to 100 per cent of the dollars terpart funds in Belgium to finance research and invested plus actual earnings or profits derived technical developments in industry and agricul- from the projects represented by such investments ture.7 to the extent provided in the contract of guaranty. C. For other purposes. Counterpart funds were ECA determined that the aggregate amount to be released in various countries to finance essential in- covered under a guaranty of an industrial project dustrial housing, tourist facilities, the transportation should not at any time exceed 175 per cent of the of relief packages and, in Greece, for the care and value of the cash or tangible property invested, plus rehabilitation of refugees from the guerrilla warfare. additional amounts based upon techniques and Five per cent counterpart. Not less than 5 per processes contributed by the applicant. During cent of local currency deposits is reserved for United the first five years of individual guaranty contracts, States use in the recipient country and is placed in investors were limited in the amount of receipts a separate account under the control of United that they could convert under the guaranty, but States disbursing officers. These funds are used for beginning in the sixth year each investor in indus- ECA administrative expenses, or for the purchase trial and commercial enterprises may convert at or development of the production of strategic ma- any time up to the full amount of the coverage proterials which are in short supply in the United vided by each guaranty contract. The effective life States. Funds not required by ECA are transferred of the guaranties may extend until April 3, 1962. No provision was made under the guaranty legisto the United States Treasury for use by other lation of 1948 or 1949 against ordinary business or United States Government agencies. In order to be political risks or against fluctuations in rates of so used, these agencies must, in effect, purchase such foreign exchange. Guaranties of investments in funds from the Treasury with their appropriated enterprises producing or distributing informational dollars. media were reduced under the Act as amended in ECA guaranty program. In the two years of ECA 1949 from a limit of 15 million dollars to a limit operations ending on March 31, 1950, 17 guaranty of 10 million in any fiscal year.8 contracts, with a total value of $6,130,127, were issued in connection with new industrial investments ECA experience during the first year of the by United States investors in ERP countries. In 8 Under the Foreign Economic Assistance Act of 1950, addition, the total of informational media guaran- which amends the Economic Cooperation Act of 1948 as ties signed since the inception of the program amended, considerable changes were made in the guaranty amounted to $3,053,838. coverage formerly provided. Among other things this amendment enlarges the definition of investments which As of March 31, 1950, there were under conmay qualify for guaranties to include those of an intangible sideration 29 applications for industrial investment (i.e., patents, processes, and techniques) as well as tangible guaranties amounting to $32,250,876; 4 applications nature. Also, in addition to the risk of nonconvertibility of for guaranties of contracts for the furnishing of foreign currencies, ECA may guarantee against the risk of loss due to expropriation or confiscation by action of a govcapital goods items and related services (forward ernment of a participating country. Finally, as indicated previously, Congress gave ECA authority to issue up to 200 7 The release of counterpart funds in Belgium occurred million dollars in guaranties, an increase of 50 million over after the close of the period under review. the amount previously available. 976 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE NATIONAL ADVISORY COUNCIL Recovery Program indicated that the investment the Department of the Army, for economic aid to guaranty provision had interested primarily com- Japan during the fiscal year 1951. The Council panies doing a considerable volume of European had occasion previously to review the Department business in relatively specialized products either of the Army's appropriation request for the ecothrough plants already established abroad or by nomic rehabilitation of Japan for the fiscal year export sales. These guaranties were approved by 1950. At that time, the Council believed that certhe EGA and the participating governments con- tain steps should be taken in Japan to bring about cerned on the basis of their contribution to the re- economic stabilization. Council consideration of covery effort. In most cases, it was anticipated the Japanese financial situation was followed by a that not only would the domestic market of the directive of the Supreme Commander Allied Powers recipient country be served by the guaranty, thus (SCAP) to the Japanese Government on economic reducing the need for dollar imports, but that some stabilization and by a Mission to Japan to advise of the output would also be sold to other countries. and assist SCAP in the implementation of the Informational media guaranties have been written directive. A single exchange rate for the Japanese for newspapers, magazines, and other periodicals yen was established during April 1949. The direcin such a manner that the amounts payable by EGA tive and the work of the Mission have resulted in to publishers or distributors will not exceed the progress in the economic stabilization of Japan and estimated dollar costs incurred. These guaranties in assisting the country in its efforts toward attaininvolved new investments for the purpose of ob- ing a self-supporting economy. taining increased circulation and are issued gener- The appropriation request for economic aid to ally for a period of six months with the privilege Japan for the fiscal year 1951 was subsequently preof renewal upon expiration. sented to the Congress. Korea. During February 1950, under the Far ECONOMIC ASSISTANCE FOR ASIA Eastern Economic Assistance Act of 1950 (Public China. Under the Foreign Assistance Act of Law 447, 81st Cong., 2d sess.) the Congress au- 1948, an appropriation of 275 million dollars was thorized 60 million dollars of aid to Korea for the made available for economic aid to China until fiscal year ending June 30, 1950, in addition to the April 3, 1949. In early 1949, when it became evi- sums already appropriated. The Reconstruction dent that the civil war on the Chinese mainland Finance Corporation was authorized to make adhad severely restricted the area of effective United vances not to exceed 30 million dollars to carry out States aid, the program of assistance was reduced this provision.10 Korea had previously received in scope. As of April 3, 1949, the unobligated 60 million dollars in aid to cover part of its requirebalance of funds from this appropriation amounted ments for the fiscal year 1950. to 54 million dollars. These funds, and any funds EXPORT-IMPORT BANK CREDITS thereafter released from obligation, were made available for expenditure through February 15, During the period under review, the Council 1950, by Public Law 47 (81st Cong., 1st sess.). continued to work closely with the Export-Import Subsequently, as a result of further developments Bank to facilitate coordination of the Bank's operain China, the program was progressively curtailed. tions with those of other agencies concerned with Certain funds were released from obligation and on foreign financial and monetary matters. New December 31, 1949, there was left an unobligated credits authorized by the Bank during this period portion of 90.8 million dollars from the original totalled $216,642,859. appropriation, plus further estimated releases from Afghanistan. Application by Afghanistan to the obligation of 14.0 million. Under Public Law 447 Export-Import Bank for credits to assist in financing (81st Cong., 2d sess.), the Congress extended from the dollar costs of equipment, materials, and serv- February 15, 1950, to June 30, 1950, the authority ices required for the construction of dam, river of the President to obligate funds previously appro- development, and irrigation projects, was referred priated under Public Law 47 (81st Cong., 1st sess.) to the Council. Development work, previously for assistance to certain areas of China.9 undertaken by an American engineering firm and Japan. During January 1950, the Council re- financed by Afghanistan's foreign exchange reviewed a request for appropriations, prepared by ceipts, had resulted in the construction of a dam and an all-weather road. Completion of the irriga- 9 Under the China Area Aid Act of 1950 (Title II of the Foreign Economic Assistance Act of 1950), unobligated 10 In June 1950, Section 3(d) of the Far Eastern Economic funds or those to be released from obligation under the 1949 Assistance Act of 1950 was amended to authorize 100 million appropriation were made available through June 30, 1951, to dollars of assistance for Korea for the fiscal year ending further the general objectives of the China Aid Act of 1948. June 30, 1951 (Public Law 535, 81st Cong., 2d sess.). AUGUST 1950 977 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE NATIONAL ADVISORY COUNCIL tion works to be financed in part by the proposed announced on October 28, 1949, authorization of credit will provide for an increased food supply and a credit of $2,750,000 to the Corporacion de Fopermit the resumption of other types of agricultural mento to be repaid over a period of 15 years at production. It should also improve the country's 4 per cent, repayment to be guaranteed by the international financial position. After consultation Republic of Chile. with the Council, the Bank on November 25, 1949, As indicated in its previous Report, the Council announced authorization of credits to Afghanistan had earlier approved consideration by the Exportnot to exceed 21 million dollars. Import Bank of a credit to Chile not to exceed Bolivia. In 1944, after recommendation by a 25 million dollars to assist in the financing of its United States economic mission, construction was import program for the remainder of 1949. The started on the Cochabamba-Santa Cruz highway in authorization of this credit was announced by the Bolivia. At that time, the Export-Import Bank ex- Bank on October 7, 1949. tended a credit of 15.5 million dollars to the Bolivian Ecuador. In order to assist in the reconstruction Government of which 10.0 million, along with of property damaged by the earthquake of August funds supplied from Bolivian sources, was to be 5, 1949,-Ecuador applied to the Export-Import Bank used to finance highway construction. This high- for credits to finance the cost of the repair and reway is designed to provide a transportation link construction of roads, the financing of railroad between the centers of population and agricultural equipment, and for specific projects directed toward areas in Bolivia, and make possible the development restoration of the earthquake-affected area. All of of the Santa Cruz area as a source of supply for the projects undertaken as a result of this financing food and other agricultural products, which are will be directed toward meeting Ecuador's long now largely imported. The development will also range reconstruction and development needs. Docontribute to an improvement of Bolivia's inter- mestic costs of reconstruction will continue to be national payments position and serve to relieve its provided by internal financing on the part of Ecuaextreme dependence on the production and export dor. The Council approved consideration by the of tin. The Council approved consideration by Bank of a credit to Ecuador of 7 million dollars, the Bank of an additional credit to Bolivia and on payable over a period of 20 years, with interest at November 1, 1949, the Bank announced that it 3% per cent per year, and the Bank announced had authorized a credit to the Bolivian Govern- authorization of this credit on December 21, 1949. ment not to exceed 16 million dollars to finance Indonesia. During February 1950, the Bank two-thirds of the costs of completing the Cocha- consulted with the Council on an application by bamba-Santa Cruz highway. Advances under the the Republic of the United States of Indonesia for credit will be repaid over a period of 16.5 years credits to assist in financing the import from the beginning on March 31, 1954, and ending on Sep- United States of capital goods urgently required tember 30, 1970, at a rate of interest of 3Y 2 per cent for reconstruction of the Indonesian economy. per annum. Vital equipment and materials for agricultural pro- Chile. Application to the Bank by the Cor- duction and processing are necessary in order to poracion de Fomento de la Produccion of Chile for restore Indonesia to her prewar level as a major funds to assist in the development of iron ore de- source of certain products, such as rubber, tin, palm posits near Coquimbo, Chile, was referred to the oil and coconut products, sisal, tea, kapok, and Council during October 1949. Under this proposal, other essential commodities. On February 11, 1950, credits will be made available for purchase in the the Bank announced the authorization of the estab- United States of railroad, dock, and construction lishment of credits to Indonesia up to 100 million equipment representing one-third of the total esti- dollars at an interest rate of 31/ per cent per annum 2 mated financing costs of $8,250,000. The re- repayable over a period of 20 years, with principal mainder of the funds will be supplied by the Beth- payments beginning after five years. lehem Steel Company and will help finance the con- Saudi Arabia. During October 1949, the Bank struction of port works and ore handling facilities, referred to the Council an application of the Al and the rehabilitation of railway facilities. The Haza Cement Company, a subsidiary of Saudi purpose of this new credit is to assure a supply of Arabian Industries Corporation, for the construcore for the steel plant located near Concepcion, tion of a cement plant. After consultation with the Chile, which was financed in part by a 48 mil- Council, the Export-Import Bank on November 9, lion dollar Export-Import Bank credit, and to 1949, authorized a credit of 4 million dollars to provide an additional source of dollar revenue to this company under guaranty of the Saudi Arabian Chile from the export of iron ore to the United Government. The loan will mature in 10 years States. The Bank, after consulting the Council, and bear 4 per cent interest. 978 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE NATIONAL ADVISORY COUNCIL Yugoslavia. Early in 1950, the Export-Import TABLE IX Bank consulted the Council on the application by CREDITS AUTHORIZED BY THE EXPORT-IMPORT BANK Yugoslavia for additional credits to provide essen- JULY 1, 1945-MARCH 31, 1950a tial imports, including those necessary to maintain BY AREA AND COUNTRY and improve the transport system, particularly in [In millions of dollars] those branches related to Yugoslav exports. On Lend- March 2, 1950, the Bank announced that 20 million Recon- De- lease Cot- Area and country Total struc- velop- requi- ton Other dollars would be available to Yugoslavia until tion ment si- pur- March 30, 1951, to bear interest at 3l/ per cent per tions chases2 2 annum, and to be amortized over a period of seven Total, all areas.. 2,846.2 1,008.6 972.3 655.0 183.0 27.3 years, beginning on January 1, 1954. Total, Europe. .. 2,050.0 971.9 300.5 655.0 105.0 17.6 Other Export-Import Bank credits. In October France 1,200.0 650.0 550.0 1949, a credit of $3,806,200 was established to assist Netherlands. .. . 205.3 152.2 "3'A 50.0 in financing the sale by Higgins, Inc., shipbuilders, Belgium 132.0 45.0 32.0 55.0 of coastal cargo vessels and harbor ferries to Brazil. Italy.... 131.8 101.9 25.0 34.9 In November 1949, the Bank joined with the Inter- F N i o n r l w an a d y 1 5 0 0 0 . . 2 2 '"50.0 73.2 17.0 MO. . O 2 national General Electric Company in financing Poland. 40.0 40.0 the dollar costs of expending the electric power gen- Yugoslavia 40.0 40.0 erating and distributing equipment of the Com- Turkey 35.5 35.5 Czechoslovakia . 22.0 20.0 32.0 pania Anonima de la Electricidad de Caracas, Denmark 20.0 20.0 Venezuela. The Bank's credit for this purpose is Greece 14.7 14.7 $5,158,000. Austria 13.1 12.6 .5 Germany 4.6 54 6 The Export-Import Bank also acted, on behalf Sweden 2.2 2 2 of ECA, as administering agency for the supple- Unallotted cotmentary loan agreements with participating ERP ton credits. . . 38.4 38 4 countries, signed during the period under review. Total, Latin America 284.5 284.5 The terms and conditions of these loans, determined by ECA after consultation with the Council, include Chile 92.5 92 5 Brazil 68.4 68.4 an interest rate of 2l/ per cent per annum payable Mexico 57.0 57 0 2 semiannually from 1952, and principal payments Colombia 20 0 20 0 beginning in 1956. The loans mature in 1983. Bolivia 19.3 19 3 Ecuador 10.8 10.8 Minor changes were made in the amounts covered by the loan agreements with the Netherlands (for V H e a n it e i zuela 4 8. 0 0 8 4 .0 0 Indonesia), Ireland, Sweden, and the United King- Panama 2 0 2 0 dom. Argentina .2 .2 Uruguay 1 1 As of March 31, 1950, the resources of the Ex- Other L. A 2 2 2.2 port-Import Bank were distributed as follows (in Total, Asia and millions of dollars): Africa ,. 357.0 36.7 242.3 78.0 Indonesia 100 0 100 0 Loans outstanding . $2,199.8 Israel 100.0 100.0 Undisbursed commitments 486.5 China 66.7 "33.'7 "33.6 Uncommitted lending authority . . . 813.7 Japan 45 0 5 45 0 Afghanistan.... 21.0 21.0 Saudi Arabia. . . 14.0 14.0 Total lending authority . . $3,500.0 Egypt 7.3 7.3 Table IX shows the distribution of credits (less Ethiopia 3.0 3.6 cancellations and expirations) authorized by coun- Canada 145.0 5 145.C try and object of financing. Miscellaneous .. 9.7 9.7 THE POINT IV PROGRAM AND FOREIGN INVESTMENT 1 Cancellations and expirations deducted. Many of these pertained to credits established prior to July 1, 1945. Numerous PROBLEMS small exporter-importer loans extended by the Bank, July 1, 1945, through Mar. 31, 1950, are excluded, as well as participation by The general nature of the Point IV Program was private banks not guaranteed by the Export-Import Bank. Also excluded are Mexican authorizations of 30 million dollars, and a discussed in the preceding semiannual Report of Peruvian authorization of $400,000 approved prior to June 30, 1945, recorded on the books of the Export-Import Bank subsequent to the Council. During the period under review, June 30, 1945. progress was made in the negotiation of treaties of 2 Credits extended by Export-Import Bank under general approval of the Council. Hungarian credit of 7 million dollars canfriendship, commerce, and economic development, celled Apr. 2, 1947. 3 For financing tobacco purchases. 4 For financing food purchases. 5 Revolving credits. which have as one of their objectives the creation Source: Export-Import Bank of Washington. AUGUST 1950 979 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE NATIONAL ADVISORY COUNCIL of a more favorable climate for investment abroad. following a report of the United Nations Economic The proposals relating to United States participa- Survey Mission to the Middle East, the Departtion in international technical cooperation were ment of State referred to the Council for its conconsidered by the Congress and included in the sideration the financial aspects of United States over-all program for foreign economic assistance.11 participation in the United Nations program for aid As of the date of this Report, no further action had to Palestine refugees. Under this plan, it was probeen taken on the bills permitting the extension of posed that funds be made available for direct relief foreign investment guaranties, which had been and works programs in Jordan, Syria, and Lebanon. reported on favorably by the Banking and Cur- Erosion control, reforestation, dam, and road conrency Committees of both Houses of Congress dur- struction would be the main types of work undering the first session of the Eighty-first Congress.12 taken. This area is generally self-supporting and The communique signed on September 12, 1949, thus only a small portion of the funds would be following the Tripartite Discussions among repre- required for food. sentatives of the United States, the United King- The United Nations Mission estimated that the dom, and Canada, requested the President's Com- total cost of the program would amount to approximittee for Financing Foreign Trade to explore mately 55 million dollars for the period January 1, possible means of action in promoting overseas 1950, to June 30, 1951. The Council advised the investment in cooperation with corresponding Department of State that it had no objection to an groups of British and Canadian financial and busi- appropriation request of about 27.5 million dollars ness representatives.13 as the United States contribution for aid to Pales- In December 1949, the Council and the Presi- tine refugees during this period, and the view was dent's Committee met in joint session and con- expressed that such assistance might be extended on sidered in detail the relationship of investment a grant basis. An appropriation request for this treaties to the development of a favorable climate program was later submitted to the Congress.14 for private investment, the sphere of private capital Philippine exchange controls. In response to a investment in relation to government capital, the request of the Philippine Government the Presiformation of foreign banking committees to facili- dent, with the advice of the National Advisory tate private foreign overseas investment, the experi- Council, agreed in December 1949 to temporary ence of ECA in the field of technical assistance, and measures by the Philippine Government to deal various aspects of the Export-Import Bank's pro- with the then existing foreign exchange situation. posed investment guaranty program for stimulat- The President acted in accordance with the proing private investment. visions of the Executive Agreement of July 4, 1946, The Council and the President's Committee both between the Governments of the Philippines and believed that a case study of private foreign in- the United States. The Philippine Government on vestment experience in recent years might be help- December 9, 1949, instituted controls over transful in determining appropriate incentives for pri- actions in foreign exchange. vate investment. The Committee agreed to under- Proposed International Commodity Clearing House. take such a case study. During November 1949, the Council reviewed a proposal, contained in a report of the Food and OTHER FINANCIAL PROBLEMS Agricultural Organization of the United Nations, Aid to Palestine refugees. In December 1949, for the establishment of an International Com- 11 Under the Foreign Economic Assistance Act of 1950modity Clearing House. This institution was to (Public Law 535, 81st Cong., 2d sess.)> the Congress author- be chartered initially for a period of five years durized 35 million dollars for United States participation in ing which time it would engage in two types of technical cooperation programs, including those carried on surplus disposal operations: by the United Nations. ^During the second session of the Eighty-first Congress, (1) Surplus commodities would be purchased at a revised House bill was reported out favorably and placed commercial prices from hard currency countries on the calendar for consideration during July 1950. and resold also at commercial prices to soft cur- 13 On Apr. 20, 1950, the Canadian Minister of Finance rency countries. The latter would make payment announced the establishment of an Advisory Committee on Private Overseas Investment under the chairmanship of in their own currencies to the Clearing House Mr. Gordon R. Ball, General Manager of the Bank of which would hold each soft currency to the ac- Montreal. The press announcement indicated that the Committee would probably, in the first instance, devote 14 The Foreign Economic Assistance Act of 1950 authorits attention to a study of the obstacles impeding the free ized the Secretary of State to make contributions before flow of investment from Canada to overseas countries and July 1, 1951, for the "United Nations Relief and Works of the steps that might be taken to eliminate or minimize Agency for Palestine Refugees in the Near East," in amounts these obstacles. not exceeding in the aggregate $27,450,000. 980 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE NATIONAL ADVISORY COUNCIL count of the selling country until it became con- rencies for the account of the United States or other vertible or until such time as some appropriate use hard currency countries. The accumulation of might be found for it by the creditor country. additional inconvertible currency holdings by hard (2) Surplus commodities would be purchased by currency countries would correspondingly increase the Clearing House from hard currency countries the liabilities of the deficit countries and so constiat less than market prices and resold abroad at the tute a serious deterrent to the establishment of reduced price for such special purposes as relief convertibility. and school lunch programs. Such purchases and At the FAO Conference, Fifth Session, Novemsales would be made only for hard currencies and ber 21-December 6, 1949, food deficit as well as would be on account of the general fund of the food surplus countries opposed the proposal as Clearing House. not workable. The Conference established ma- The proposal contemplated that the Clearing chinery to continue study of the problem of sur- House would have an authorized capital equiva- plus agricultural commodities. lent to 5 billion dollars, with membership quotas Financial terms for sales of foreign excess propassessed on the basis of national income, and that erty. The Council has from time to time reviewed subscriptions of 20 per cent of this amount would the financial terms for sales of foreign surplus be used as a revolving fund to finance the trans- property by the former Office of the Foreign actions involving purchases and sales for hard cur- Liquidation Commissioner, State Department. rencies. The remaining 80 per cent of quotas When the OFLC was abolished on June 30, 1949, would be callable only with the consent of the the function of disposal of foreign excess property countries involved. was transferred, effective as of that date, to each The Council did not favor United States partici- executive agency having such property. The pation in an international organization, such as the Council authorized the successor departments and proposed International Commodity Clearing House, agencies of OFLC operating in this field, pursuant which was designed to serve as a financial mecha- to Public Law 152 (81st Cong., 1st sess.) to extend nism for the disposal of agricultural surplus com- credit on terms similar to those contained in agreemodities. The Council also held that the sale of ments negotiated by the OFLC, when immediate surpluses abroad for inconvertible currencies under payment in United States dollars is not practithe proposed plan would be undesirable since it cable or advantageous, and, in certain cases, to would result in further accumulation of such cur- accept payment in foreign currencies. IV. ACTIVITIES RELATING TO THE INTERNATIONAL MONETARY FUND AND THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT The National Advisory Council, in accordance MEMBERSHIP CHANGES IN THE FUND AND THE BANK with statutory authority, continued to coordinate In January 1950, the Boards of Governors of the activities of the United States Directors on the the Fund and the Bank, by mail and telegraph Executive Boards of the Fund and the Bank with ballot, approved the membership application of those of other agencies of the Government, by con- Pakistan, providing for a quota in the Fund of 100 sulting and advising with them on major problems million dollars, with a like amount as a subscriparising in the administration of the Fund and the tion to the Bank. The Council advised the United Bank. The United States Executive Directors of States Executive Directors on the Fund and the these institutions, or their Alternates, have at- Bank to give favorable consideration to the applitended the Council's meetings regularly, and have cation. Pakistan will have until July 31, 1950, to participated continuously in the work of its Staff accept membership, although this period may be Committee. extended to January 31, 1951. During the period In the six-month period under review, the Coun- under review, no new countries were formally adcil gave consideration to various policy questions mitted to membership in either the Fund or the relating to the activities of both the Fund and the Bank. Bank. These questions have been discussed in the On March 15, 1950, the Fund and Bank an- Second Special Report of the National Advisory nounced the withdrawal of Poland from the two Council on the Operations and Policies of the Interorganizations. As of March 31, 1950, 47 countries national Monetary Fund and the International were officially listed as members of the Fund and Bank for Reconstruction and Development (H. of the Bank. Doc. No. 611, 81st Cong., 2d sess.).15 ORGANIZATIONAL CHANGES 15 For text of this report, see Federal Reserve BULLETIN for June 1950, pp. 661-77. On January 17, 1950, the President of the United AUGUST 1950 981 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE NATIONAL ADVISORY COUNCIL States, with the advice and consent of the United Exchange transactions. The Fund's largest cur- States Senate, made three appointments affecting rency sale in the period under review occurred in United States representation on the Fund and on November 1949, when Brazil purchased 22.5 milthe Bank. Mr. James E. Webb, Under Secretary lion United States dollars for cruzeiros. This transof State, was appointed to serve also as United action represented Brazil's second drawing on the States Alternate Governor of the Fund and of the Fund. In October 1949, Australia made its initial Bank; Mr. William McChesney Martin, Jr., Assist- drawing on the Fund through a purchase of 20 milant Secretary of the Treasury, was appointed to lion dollars for Australian pounds. During that serve also as United States Executive Director of same month, Yugoslavia bought 6 million dollars in the Bank; and Mr. John S. Hooker, United States exchange for dinars, and Ethiopia purchased $300,- • Alternate Executive Director of the Bank, was re- 000 for Ethiopian dollars. Each of the latter two appointed to that position, concurrently assuming transactions represented a second drawing by the the duties of United States Alternate Executive respective governments. Director of the Fund. Each of these three appoint- The United States Executive Director on the ments became effective on January 18, 1950. Mr. Fund, after consultation with the Council, con- Webb replaced Mr. William L. Clayton, whose curred in these transactions. resignation had become effective on August 27, Table X presents—by semiannual periods—all 1949. Mr. Martin's appointment was to the posi- currency sales made by the Fund from its inception tion formerly held by Mr. Eugene R. Black, who to March 31, 1950. assumed the Presidency of the Bank on July 1, Repurchase of Fund drawings. During the period 1949. As United States Alternate Executive Direc- covered by this report, two countries—Costa Rica tor of the Fund, Mr. Hooker replaced Mr. Henry and Belgium—repurchased portions of their cur- J. Tasca, whose resignation became effective De- rencies from the Fund. In November 1949, Costa cember 22, 1949. Rica repurchased the equivalent of $1,250,000 of its own currency held by the Fund, thereby offsetting THE FUND dollar drawings in the same amount made in the During the six months ending March 31, 1950, last quarter of 1948. This is the second repurthe Fund sold 48,800,000 United States dollars to chase transaction by Costa Rica, the earlier transfour of its member countries for an equivalent action, in the amount of $874,000, having been amount in local currencies. These transactions effected in May 1949. increased the total of Fund currency sales to an On January 23, 1950, Belgium repurchased apequivalent of $783,385,000 from May 8, 1947 (the proximately one billion Belgian francs from the date of the Fund's initial sale), to March 31, 1950. Fund, by payment of $12,090,283 in U. S. dollars Repurchases by member countries of their cur- and the equivalent of $8,548,923 in gold. An rencies aggregated nearly $21,900,000 in the cur- earlier repurchase of Belgian francs in the amount rent six-month period. of $946,500 occurred in August 1949. As a result Par values and exchange rates. The six months of these two transactions, the Fund's holdings of from October 1, 1949, to March 31, 1950, witnessed Belgian francs were reduced to the level preceding an adjustment by many nations throughout the Belgium's initial purchase of dollars from the Fund world of their currency values, principally as a in December 1947. consequence of the devaluations that occurred in September 1949. Some of these adjustments con- THE BANK stituted formal changes in par values (Iceland, During the period under review, the International British Honduras), while most of them consisted Bank granted $17,545,000 in new loans to three of of changes in existing multiple exchange rate struc- its member countries. These loans increased the tures. Included in this latter category are Austria, total of the Bank's outstanding commitments to Bolivia, Chile, Costa Rica, Ecuador, Nicaragua, $737,707,000 as of March 31, 1950. During the Paraguay, and Uruguary, all of which are members period, the Bank concurred in requests for the canof the Fund; as well as Argentina and Spain, which cellation of portions of loans previously granted to are nonmembers. On November 15, 1949, Peru two of its member countries. These cancellations suspended the par value of the sol, permitting the totalled $6,438,000. exchange rate to be determined in an exchange New loan commitments. On October 17, 1949, certificate market. Details of the currency adjust- the Bank granted two loans totalling 5 million ments made by the various countries listed above dollars to the Republic of Finland and to the Fedmay be found in chapter II of the Council's Second eral People's Republic of Yugoslavia for the devel- Special Report. opment of the timber resources of those countries. 982 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE NATIONAL ADVISORY COUNCIL TABLE X INTERNATIONAL MONETARY FUND CURRENCY SALES, JANUARY 1, 1947-MARCH 31, 1950 x [In millions of dollars] 1947 1948 1949 Country Total Jan.-June July-Dec. Jan.-June July-Dec. Jan.-June July-Dec. Total 783.4 62.0 405.7 163.5 50.7 49.7 51.8 United Kingdom 300.0 240.0 60.0 France . . . .. 125.0 75.0 India 100 0 44 1 24 2 31 7 Netherlands 75.3 212.0 40.0 323.3 Brazil 37.5 15.0 22.5 Belgium . . 33.0 11.0 22.0 Mexico 22.5 22.5 All other 4 90 1 17.2 14.1 26.5 3.0 29.3 Australia.... 20.0 20.0 Norway 15.7 5 7.3 6 8.4 Denmark 10 2 3.4 6.8 Union of South Africa. . ... 10.0 10.0 Yugoslavia ..... 9.0 9.0 Chile . . 8 8 8 8 Czechoslovakia 6.0 6 0 Turkey 5.0 5.0 Egypt 3.0 3.0 Costa Rica 1 3 1.3 Ethiopia .... 0 6 0 3 0.3 Nicaragua. 0.5 0.5 1 No currency sales were made by the Fund between Dec. 31, 1949, and Mar. 31,, 1950. 2 Includes $6,045,000 of pounds sterling. 3 Includes $6,845,029 of Belgian francs. 4 As presented in Chart 4 [omitted here]. 5 Includes $2,286,676 of Belgian francs. 6 Consists of $6,126,788 in U. S. dollars sold for an equivalent in gold, and $2,281,676 of Belgian francs. NOTE.—Except where otherwise indicated, all sales were of U. S. dollars in exchange for the currency of the purchasing country. Repurchases by members of their own currencies totalled about $24,209,000 as of Mar. 31, 1950. Such repurchases have not been deducted from data in this table. Source'. Internationa 1 Monetary Fund. The loan to Finland was in the amount of 2.3 special reserve. Amortization payments, to begin million dollars, while the loan to Yugoslavia on July 15, 1954, are calculated to effect retireamounted to 2.7 million. ment by maturity. In addition to the foreign Both loans are for terms of two years and carry exchange costs which the International Bank exinterest rates of 2 per cent, plus the usual 1 per cent pects to finance, the power development project commission for the Bank's special reserve. In addi- would require an expenditure of an equivalent of tion, a commitment charge of ll/ per cent will about 5 million dollars in Salvadorean colones. 2 apply to the undisbursed portion of the loans. These local currency costs would be financed by Amortization payments, beginning on June 30, the public sale in El Salvador of bonds denominated 1950, are calculated to retire the loans at maturity. in colones, to be issued by the Commission. To The loan to Finland became effective on December become effective, the loan agreement must be 16, 1949, and the loan to Yugoslavia on January 24, ratified by an elected Constituent or Legislative 1950, after certain conditions had been fulfilled. Assembly in El Salvador. As of March 31, 1950, On December 14, 1949, the Bank announced such action had not yet been taken. that it was prepared to extend a loan of $12,545,000 The Council was consulted by the United States to the Rio Lempa Hydroelectric Commission, an Executive Director or his Alternate with respect agency of the Government of El Salvador, for the to each of the above loan applications. purpose of financing imports for the development Table XI presents—by semiannual periods—loan of electric power resources. This loan, the first to commitments (net of cancellations) made by the be made by the Bank in the Central American area, International Bank from its inception to March 31, is to be guaranteed by the Government of El Salva- 1950, of outstanding loans at the termination of dor. The loan is to be for a term of 25 years and any given semiannual period: to carry an interest rate of 3*4 per cent, in addition Loan cancellations. The Bank's first loan canto a commission charge of 1 per cent for the Bank's cellations occurred during the six months under AUGUST 1950 983 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE NATIONAL ADVISORY COUNCIL TABLE XI INTERNATIONAL BANK LOAN COMMITMENTS, JANUARY 1, 1947-MARCH 31, 1950 1 [In millions of dollars] 1947 1948 1949 Country Total Jan.-June July-Dec. Jan.-June July-Dec. Jan.-June July-Dec. Total 737.7 250.0 246.8 16.0 12.0 125.1 87.8 France .... 250.0 250 0 Netherlands 215.8 195.0 12.0 28.8 Brazil 75.0 75 0 India 44.0 44.0 Denmark 40.0 40 0 Mexico 34.1 34.1 All other 3 78.8 11.8 16.0 16.0 35.0 Belgium 16.0 16.0 Chile 16.0 16 0 Finland. 14.8 14.8 El Salvador 12.5 * 12.5 Luxembourg 11.8 8 11.8 Colombia 5.0 5 0 Yugoslavia 2.7 2.7 1 No loan commitments were made by the Bank between. Dec. 31, 1949 and Mar. 31, 1950. 2 After cancellation of 6.2 million dollars, effective Mar. 17, 1950. 8 As presented in Chart 5 [omitted here]. 4 Agreement becomes effective after the Bank has received certain certificates and documents, and has notified the borrower and guarantor of its acceptance of such evidence. e After cancellation of $238,017, effective Dec. 19, 1949. NOTE.—In all instances, loans have been made to or guaranteed by the respective governments. Source: International Bank for Reconstruction and Development. review, and consisted of a reduction of 6.2 million On January 25, 1950, the Bank, with the consent dollars in the principal amount of 15.0 million of the Council, sold in the United States market an originally made available to the Herstelbank on issue of 100 million dollars of 2 per cent serial July 26, 1949, and a $238,017 reduction in the 12.0 bonds, scheduled to mature in equal amounts anmillion dollar commitment made by the Bank to nually between 1953 and 1962. These securities Luxembourg on August 28, 1947. were issued to retire a like amount of outstanding Bank financing. In June 1949, the Congress 10-year 2% per cent bonds due July 15, 1957. On enacted legislation classifying securities issued or March 6, 1950, the Bank announced the sale of an guaranteed by the International Bank as exempted equivalent of approximately 6.6 million dollars securities under the Securities Exchange Act of in 2l/ per cent Swiss franc bonds to a group of 2 1934, as amended. The Council supported this leading banks in Switzerland. Additional informalegislation. Subsequently, the Federal Reserve tion concerning each of these transactions may be Board stated that, as a result of this enactment, found in the Council's Second Special Report. International Bank securities should be classified Future operations. As of March 31, 1950, the as exempted securities under Section 2(e) of Regu- Bank had in excess of 320 million dollars in unlation T, thus placing such securities in the same committed dollar funds available for lending, and category under the regulation, as United States was actively engaged in the processing of numerous Government, State and municipal bonds. On loan applications. The Bank may also be expected October 24, 1949, following the Board's ruling, the to continue, through its economic missions, to assist New York Stock Exchange announced greatly re- countries in making general surveys of developduced margin requirements for transactions in ment potentialities and to recommend measures to International Bank bonds. facilitate their realization. 984 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE BANK FOR INTERNATIONAL SETTLEMENTS The Twentieth Annual Report of the Ban\ for lands, Denmark, Norway, Sweden, Finland, and International Settlements, covering the year end- Ireland, indexes of industrial production registered ing March 31, 1950, was submitted to the annual increases of 25 per cent or more above the prewar general meeting at Basle on June 12, 1950, by the volume. If that is the case—and the statistical evi- General Manager, M. Roger Auboin, Selections dence cannot in general be doubted—the question from the report, presenting the subjects of wider may fairly be asked why these balance-of-payments general interest, are given herewith. and other difficulties still affect most of the western European countries and why, for instance, goods THE SIGNIFICANCE OF MOUNTING PRODUCTION cannot be made more fully available for export, to Five years have now elapsed since the war came fill the gap on the foreign account so that not so to an end. In retrospect, it is apparent that, po- much outside aid is needed. There is no simple litically, the high hopes which were summed up in answer to these questions; a number of different the notion of "one world" have not been fulfilled. circumstances must be taken into account, some of But, despite much political anxiety, economic re- a more statistical nature, but most of very real imcovery has in general been achieved on a more sub- portance for the economies concerned. stantial scale than seemed possible after the con- Before these various circumstances are examined vulsions and destruction brought about by the sec- in greater detail, they may be summarised as folond world war—hostilities being this time really lows: world-wide and not, as in 1914-1918, mainly on (i) industrial production has generally risen more European soil. It is calculated that for the world as than the output of other activities (agriculture, a whole the volume of industrial production at the services, etc.) and it is a fact that the increase in end of 1949 was perhaps 35 per cent above the prethe total national income has not kept pace with war level, while in the United States it had inthe increase in population; creased by fully 70 per cent. In western Europe (ii) owing to the damage suffered during the the volume of industrial production at the time of war and to the fact that upkeep was neglected for writing (in the spring of 1950) seems to be not less many years both during and after the war, an inthan 15 per cent above the 1935-38 level; and, with creased proportion of the available resources is still the exception of Greece, where recovery has been required for repair and reconstruction; retarded by internal strife, and of western Germany, where output began really to increase only (iii) appropriations for defence are now absorbafter the monetary reform in the summer of 1948, ing more resources than, for example, after the every western European country's production is first world war; higher than before the war. The five years 1945-50 (iv) the pattern of trade has been disarranged, will undoubtedly stand out in history as a period e.g. in the relations between the east and west of of remarkable constructive achievement not only in the economic sphere but also in the social condi- NOTE.—The passages reprinted herewith constitute about one-fifth of the main text of the report; all but three of tions within a great number of countries. eleven chapters are represented. Parts omitted are Chapter I Such outstanding results could not have been at- (which reviews the activities of the Bank since its establishtained without great efforts on the part of peoples ment), Chapter V dealing with world trade, and Chapter X still often weary from their wartime exertions; an- dealing with current activities of the Bank. The complete report contains numerous tables and charts, as well as the other very important contributory factor was the texts of several agreements adopted in 1949 and 1950 for provision of aid through international cooperation intra-European payments and compensations, together with at certain critical stages. related tables. Selections from the Bank's First Annual Report were Industrial production in western Europe seems in published in the Federal Reserve BULLETIN for July 1931 and the spring of 1950 to have been not less than 15 the series was continued through the Twelfth Report—see per cent above the 1935-38 level. This is, of course, BULLETIN for January 1943, pp. 15-41. A reprint of brief an average—account being taken of the fact that in sections of the Thirteenth Report was issued in pamphlet form by the Board of Governors in November 1944. For some countries, and among them Western Gerselections from the Fourteenth, Seventeenth, Eighteenth, and many, only the prewar volume of production had as Nineteenth Annual Reports, see BULLETIN for September yet been reached; but in quite a number of countries, 1945, pp. 874-901, October 1947, pp. 1228-50, October 1948, including the United Kingdom, France, the Nether- pp. 1221-39, and August 1949, pp. 912-34, respectively. 985 AUGUST 1950 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE BANK FOR INTERNATIONAL SETTLEMENTS Europe and also as regards the triangular trade consequence of the war. The modern economic via the southeastern part of Asia; system has depended for its satisfactory working on (v) disturbing influences have affected the mone- an intricate and largely (but by no means wholly) tary system, and other forms of disorganisation self-regulating mechanism of price movements, of have been left behind by the war. supply and demand in the money and capital markets, etc. and, once this mechanism is impaired The cumulative effect of these various circum- in any essential part, it is not easily put right. War stances is considerable, as may be gathered from an economy is wasteful economy—and, when it comes analysis of each particular item. to restoring prosperity and well-being, less crude Europe's chance to reconsolidate its own eco- methods have to be used than those suddenly nomic position, with a satisfactory standard of seized upon in the war emergency. "Control" living for its growing population, depends essen- almost necessarily has to take as a starting-point tially on the extent to which the various European some situation in the past (the production turncountries can develop their trade with overseas over or imports of a particular item in, for example, producers of all the goods that Europe needs. the prewar year 1938) and it thus tends to become For a number of reasons, European countries an enemy to flexibility and progress. For that and must make serious efforts "to integrate" (to use the other reasons, countries cannot go on using the latest expression for a long-felt need); and in order wartime controls but need to develop a peacetime to work more closely together they must get rid of order which will enable their economies to prothe whole brushwood of quantitative restrictions and gress under conditions representing a sufficient deprohibitions which grew up during the war (and, gree of balance internally and on foreign account. to some extent, was sprouting already in the Restoration of a balanced system is not easy, thirties) and also allow payments for all current however: in the twenties, after the first world war, and normal capital transactions to be made freely. an attempt was made (which, at the time, was Further, in their tariff policy they must pay ineven expected to ensure "prosperity forever") but creasing attention to the avoidance of uneconomic it failed because too many questions—including the production and, with this in view, they must allow proper adjustment of reparations and other inforeign competition to make itself more strongly debtedness of Europe and the adaptation of the felt on their respective markets. United States balance of payments to the require- Liberalisation of trade within Europe is, indeed, ments of a creditor position—had been left uncalled for, and should be pushed forward with solved; and when questions of such importance are persistence and daring. But progress in this field left in abeyance they have a nasty habit of returnought not to mean that Europe will be thrown back ing and hitting one hard in the face, as indeed on itself; for any tendency to establish a closed area happened in the great depression from 1930 to would be worse than a mistake, and any goal short 1934. of a return to all-round convertibility in gold and To what extent progress has been made in the dollars, which of course automatically brings with balancing of budgets and the restoration of moneit full and immediate transferability of the Eurotary systems, as steps towards overcoming the warpean currencies inter se, would represent the actime disorganisation, will be considered in the next ceptance of an unmistakable setback in comparison chapter of this Report. Before that it may be well, with the situation between the two wars—not to however, to make it clear that an increase in prospeak of the period before 1914. There is, fortuduction—although certainly useful and, indeed, nately, general agreement regarding the goal of connecessary for an improvement in the standard of vertibility; and if, in some connections, less farliving—is not in itself sufficient for the attainment reaching solutions have been contemplated—e.g. of a balanced position. mere transferability inside Europe-—these have been (i) It would, in the first place, be a mistake to recognised as a makeshift acceptable only as a temporary measure so long as the ideal goal seemed out suppose that an increase in production will necesof reach in the immediate future. sarily mitigate inflation or even improve the bal- The problems of freeing trade and restoring con- ance-of-payments position. As long as the credit vertibility of currencies constitute an important part system is characterised by a very high degree of —-but only a part—of the general problem of over- liquidity, which has been the case in these postwar coming the disorganisation brought about by the years, money incomes are likely to rise at the same war. More than the physical damage or the loss of rate as production and in that way an amount of invisible income, the unsettling effect of disorgan- spending power will be engendered sufficient to isation has to be regarded as the most pernicious absorb the increased supply of goods. If then, pari 986 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE BANK FOR INTERNATIONAL SETTLEMENTS passu with the rise in wages and profits, the public burden must not be so heavy that enterprise is increases its consumption, there will be no increase thwarted and the flow of savings dries up. An of saving to restore equilibrium between savings adequate adjustment must further be ensured beand investment and to fill a hole in the balance of tween the current increase in production (taken in payments. A balancing effect will be produced its widest sense) and the simultaneous increase in only if the proceeds of voluntary saving and the means of payment. But, if equilibrium has been yield of taxes together rise to a greater extent than established in the four instances indicated above, the volume of investment and of government expen- it is highly probable that the remaining conditions diture. Should the increase in production be used for a balanced economy will likewise be found to mainly to bolster up investments and government have been fulfilled. These are not conditions pespending, without leading to any increase in saving, culiar to a "competitive market system"; they apply the situation will become more inflationary, not to planned economies as well. Management, which less. And increased taxation will not be a-remedy is to some extent required under any system, should if the public pays its taxes simply by cutting down never mean just arbitrary intervention but must savings. include the attainment of a certain harmony between government revenue and expenditure, costs (ii) Secondly, as long as an extreme form of the and prices, etc. sellers' market existed, it did not matter much what was produced. In such a case, once the exceptional In most cases an advance has been made towards phase is over, simply to increase production will a state of balance between government revenue not be enough: it will be necessary to ensure that and expenditure. the right thing is produced at the right price to It is difficult to generalise in matters of public permit competitive sales in the right market. finance, for the significance of such terms as current Otherwise the full value will not be obtained from and capital accounts, ordinary and extraordinary the productive efforts; on the contrary, a definite budgets, varies considerably from country to counloss will be suffered. try. In each individual country, however, it is pos- Thus, before the effect of an increase in a coun- sible to discover the trend by examining the figures try's production can be judged, it is necessary to from year to year, and it is evident from such a know what is happening in the economy with re- comparison that a significant improvement in the gard to savings, the volume of investment, govern- budget position has taken place all over Europe; for, ment expenditure and taxation and also what ac- even if the level of expenditure is often still too count is taken of market conditions abroad. It is high, it has generally become possible to do away only when sufficient balance has been restored in with inflationary methods of covering the remaining the financial field, as part of the postwar reorgani- budgetary deficit. Part of the progress has consation, that the full benefit can be obtained from sisted in the establishment of a better order from a the production effort inside each separate economy technical point of view, in that expenditure of the and in the balance-of-payments relations between kind previously entered on special Treasury acthe different countries. counts (a practice only too common during and after the war) has, in most cases, now been incorporated RETURN TO A BALANCED SYSTEM in the general budget. It is possible to distinguish a variety of methods The theory and practice of economics are both which have been employed for the purpose of putconcerned with questions of balance. For a smooth ting an end to inflationary financing. working of the economic system there are certain In most countries relatively great stability has conditions which must be fulfilled including the characterised the general price level in the years realisation of a proper balance between: 1948-50, as compared with the movements in the (i) government revenue and expenditure; preceding years, and this, coupled with the main- (ii) savings and investments; tenance of active business, ensuring a high level of (iii) costs and prices; as well as employment and sustained earnings, has meant that (iv) receipts and payments on foreign account unpleasant surprises have been avoided in the field of public finance, the actual results achieved during (i.e. in the balance of payments). recent budget years corresponding fairly closely to, This list is not exhaustive. It is not enough for or being even better than, the various estimates. budget expenditure to be covered by corresponding Hardly anywhere has it still been necessary to rebudget revenue; the level at which equilibrium is sort to inflationary financing for the purpose of covreached must not be too high in relation to the na- ering budget deficits. This, however, is not the tional income—which simply means that the fiscal only criterion by which the soundness of a coun- AUGUST 1950 987 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE BANK FOR INTERNATIONAL SETTLEMENTS try's public finances may be judged: it is, indeed, favourable effects of high taxation on incentive, imperative that the budget in its widest sense (in- the final result may be a net loss of free resources. cluding all public charges) should be balanced at a The question of the permissible burden of taxalevel which does not put too heavy a burden on the tion is being much discussed in the various couneconomy and, in particular, does not tries and improved statistical data have been re- (i) dangerously diminish incentives or the pro- cently collected. One improvement consists in pensity to take risks, taking account of both central and local taxation and of social security contributions as well, this (ii) dangerously impair the flow of private savbeing especially necessary in international compariings. sons, since the method of defraying the cost of In either of these eventualities, enterprise would social security benefits varies considerably from suffer and, with it, the volume of production and country to country—in particular as regards the the standard of living. proportions respectively charged to the general That heavy "marginal" taxation may keep peo- budget and levied directly on employers and emple from making extra efforts is generally appre- ployed. ciated, and proposals are. being worked out in many In judging the true burden of taxation, account countries to reduce as far as possible the danger must be taken not only of the bare percentage reof such damaging effects and also to allow fiscal lation to the national income but also of a number facilities in the case of special risks, e.g. in con- of other circumstances. Although difficult to measnection with exports and foreign investments. But ure, the ratio of taxation to the margin of average little can be done to achieve any radical improve- income above the subsistence level is clearly of ment as long as the over-all burden is very heavy; importance, and in a country with a relatively low for sufficient revenue must, of course, be collected income per head the subsistence minimum will for expenditure to be covered and, if expenditure is swallow up a very high proportion of the average large, complete avoidance of all forms of taxation income. It is also notoriously difficult to obtain with definitely harmful effects is clearly impossible. tax payments from farmers—a fact which will As regards the effect of the budget policy on make itself felt in Italy, for instance, where 48 savings, certain distinctions should be made. On per cent of the population are engaged in agriculthe one hand, the aim may be to secure a temporary ture and a relatively large proportion of them culbudget surplus as part of a compensatory fiscal tivate very small lots. policy, i.e. a policy adopted in times of great pros- In this field there are still many questions awaitperity in order to mitigate the exaggerations of a ing solution—one European country after the other boom; or there may be an attempt to form savings being occupied with problems of "fiscal reform" by means of a budget surplus in order to provide and of adjusting expenditure to levels at which it a part of the capital regularly required for normal is safe to maintain it. In that connection it is not investments in the economy. If, in the former case, only a question of current revenue and expenditure taxation has the effect of retarding an expansion but also of outlay for investment and how to cover of business, this is just what is desired; and when such outlay—a question which has to be considered the boom subsides the tax rates should be lowered. as part of the general problem of how to make the In the second case, however, the more general best of scarce resources in any economy. question arises whether, bon an mal an, the run- In a number of countries the attainment of equining of a budget surplus can effectually add to the librium between current savings (as augmented volume of savings in a country. Very likely this by resources from abroad) and the volume of inquestion cannot be answered in abstractor much vestments, in order to avoid inflation, did not imdepends upon the level of total charges, since a press itself on the minds of the authorities as the given increase in the revenue collected may not re- primary objective, once the war was over, since duce the rate of saving as much in a country with a it seemed to them of the greatest urgency to carry low level of taxation as in a country where the out such immediate tasks as putting transport and tax burden is already very heavy. Unfortunately, other essential services into working order and since the second world war, taxation has been high meeting the minimum capital requirements of inalmost everywhere, so the problems here involved dustrial and commercial enterprises, even if that usually present themselves under the worst pos- meant a somewhat inflationary credit expansion. sible conditions. The dilemma is that the attain- Another question soon arose: whether, at so early ment of a budget surplus generally necessitates such a stage in the postwar reorganisation, an attempt high rates of taxation that the public may reduce its should be made to fill the home market with conown rate of saving and that, owing to the un- sumer goods (which would mean, inter alia, using 988 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE BANK FOR INTERNATIONAL SETTLEMENTS part of the country's foreign resources to import Countries in western Europe have in recent such goods) in order to restore the ordinary price- years had a volume of investment which as a rule and-cost mechanism with the least possible delay, has been running at a considerably higher rate or whether the available resources should be mainly than before 1939, and this has been made possible reserved for investments even if that would mean largely by additional resources obtained from protracted shortages, the market being kept in check abroad. by a continuance of controls (the state of affairs With Marshall aid tapering off, as foreseen from which represents "suppressed inflation"). For its inauguration, the individual countries will have Switzerland there was no difficulty in answering to face a situation in which they must increasingly those questions since the existing resources were support any extension of their capital structure by sufficient for both purposes (and a careful credit their own domestic savings. It is in the realisation policy precluded excess in either direction) but it is of this imperative necessity that several countries interesting to observe that two countries—Belgium have taken steps to reduce their volume of investand France—which in many respects have come to ment, knowing, as they do by now, that an overdose follow similar policies in this connection chose dif- of investment, financed simply by an expansion of ferent lines: Belgium, even at the risk of holding credit, will tend to raise prices at home and draw up the repair of war damage and generally slowing goods away from the export market. Large as the down the rate of investment at the outset, favoured need still is for investments for a variety of pura return to ordinary market conditions in the hope poses—and especially for the construction of dwellthat relative freedom to buy what was desired ings—the obvious course is to look to increased would act as a stimulus to further efforts and en- domestic savings to meet the requirements of the courage private saving (since money that could be situation. freely used would be worth saving)—expectations In those countries on the continent of Europe which have not, on the whole, been disappointed. which have passed through periods of pronounced In France, on the other hand, ambitious investment inflation for the second time in one generation, the programmes were drawn up, and to a large extent public has become inclined to place its savings in carried out, by which much of the country's pro- "real assets" (Sachwerte) instead of keeping them ductive capacity was diverted to the provision of in money form. Since it is not to be expected that capital goods of a most modern type. This was, memories of heavy losses in the past will quickly of course, a desirable development in itself but the fade, there is all the greater need for a policy which price which had to be paid for it was a curtailment can convince careful and provident citizens of the of the potential supply of current goods—with all continued integrity of the national currency. It that this meant in the way of continued inflationary will not be sufficient to bring inflation to a tempopressure, reinforced by the difficulties of financing rary stop merely for the period during which outthe many tasks which had been undertaken. In side aid is being given; budgetary and monetary France, as in other countries pursuing a policy of policies must be such as to hold out the hope of large investments, it was really the resources con- permanence in the improvement, including an adetributed by Marshall aid which, financially and quate accumulation of reserves. There are signs in otherwise, made it possible, in the difficult year several countries—but unfortunately not in all—of 1947 and afterwards, to go on with what had been a change for the better as regards the volume of started, for monetary and other reserves were then personal savings and the form taken by them, as in many instances on the point of exhaustion. well as indications of a revival of the capital It was, in a way, a sign of optimism and vigour markets. that the European countries were so keen on mak- One of the most important aspects of the revival ing good the losses caused by the war and on laying of saving in money form and the renewal of acthe industrial foundation for increased output and tivity on capital markets is that firms which have consequently for a higher standard of living. But obtained short-term credits from the banking systhis eagerness to invest—even with the resources tem, as a matter of pre-financing for such longobtained through Marshall aid—could be carried term purposes as extension of plant, may be able to too far. Thanks to more complete collection of "unload" these commitments through capital issues basic data and to improved methods of computa- on the market. In so far as short-term credits are tion, the estimates of the volume of investments and repaid from the proceeds of long-term issues on the of the national product are generally becoming more market, the banks will regain their liquidity and be and more reliable; but even so, and especially in able to extend fresh accommodation without the risk periods of price fluctuation, they must be regarded of adding to the inflationary pressure. The revival as mainly indicative of an order of magnitude. of activity in capital markets, being an essential part AUGUST 1950 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE BANK FOR INTERNATIONAL SETTLEMENTS of the financial mechanism, is, of course, of im- erts a distorting influence on the balance in the cost portance everywhere, but special interest attaches and price structure and hence on the working of to such questions in countries where, as in Italy the economy in general. It is almost self-evident and Germany, an expansion of the volume of credit that there must be a proper relation between costs is being proposed in order to provide increased op- and prices inside each economy and also vis-a-vis portunities of employment for people out of work. foreign countries. Balance does not mean a state of In both these countries the unemployment is of a rigidity; on the contrary, movements of wages and special character and has little or nothing to do with prices are the means by which necessary changes unemployment appearing as the most regrettable in supply and production as well as in demand feature of the downward phase in the business are brought about; and this is especially the case cycle. In Italy it is a result of the large increase in now that every vestige of the wartime direction of population, at the annual rate of about 450,000 to labour has disappeared from the western world. 500,000, which adds some 150,000 adults to the Questions relating to the freezing of wages and to country's labour force every year even if emigration price control will be examined in the next chapter; takes place, as in recent times, at the annual rate of here only a few problems of a more general char- 175,000; but it must also be remembered that the acter will be touched upon. war has caused a ten years' interruption of emi- As long as an abundant supply of money is still gration. Notwithstanding the constant expansion to be found in a country and its markets remain of the labour force, it has been possible to avoid insulated from external influences by a continuance any increase in the number of unemployed since of trade and exchange controls, it is relatively easy the beginning of 1947, when, at the peak of the for producers and merchants to obtain higher postwar inflation, unemployment stood at the high prices, and in such circumstances it cannot be exfigure of 2 million. In western Germany it is, of pected that the business world will put up a strong course, essentially a question of "refugees" and resistance to demands for increases in wages. But "expellees" of whom nearly 9 million have come in the trouble is that sudden and substantial increases since 1945; many of these refugees are elderly peo- in money wages (of 25 or 30 per cent at a time, as ple, women or children, but they also include some happened, for instance, in France and Austria) 3.5 to 4 million people who are "employable." Early cannot be absorbed by existing profit margins and in 1950 the unemployed in western Germany they, therefore, increase the cost of production only totalled 2 million (this figure in itself implies that to be followed by still higher prices—to the ultimate by then the greater number of the able-bodied advantage of nobody except, possibly, a set of refugees had found work—apart from the fact that, speculators. as the total figure, it includes unemployed workers In 1948 and 1949 in France, as in most other already domiciled in western Germany before the countries in Europe, the nominal increases in war). money wages have been kept within narrower But whatever the reasons and circumstances limits. It has been realised that more moderate inwhich may be quoted to explain why so large a creases, which do not necessitate a corresponding number of workers are without occupation, it is rise in prices, are the only ones producing an imobviously desirable that they should be able to find provement in real wages, partly because they do not useful work; and the question has naturally arisen upset the monetary order. Early in 1950 it was, for whether some form of credit expansion would be instance, decided in France to return to a greater advisable for the purpose of providing additional measure of free bargaining between employers and employment. The memory of the terrible mass un- employed. This development has been made posemployment in the nineteen-thirties is still vivid, sible, on the one hand, by the restrictive credit and it is also being asked whether measures of a policy and a closer approach to a balanced budget largely monetary character could not be taken to and, on the other hand, by increased imports, rerelieve the situation. The war and postwar ex- flecting the stronger monetary position and repreperience is certainly no recommendation for in- senting one of the results of the trade-liberalisation flationary methods of financing; but it is suggested policy, while at the same time introducing an elethat the existence of "unused resources" in the ment of competition which militates against any form of unemployed labour might make it possible undue price increases and thus safeguards the confor credit to be expanded in some measure without sumer. The example of France accordingly shows causing inflation. how the restoration of a better balance internally It is now generally recognised that an excessive goes hand in hand with the restoration of greater volume of investment which has to be financed by freedom in foreign trade relations. an inflationary expansion of credit necessarily ex- There must always be a need to establish com- 990 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE BANK FOR INTERNATIONAL SETTLEMENTS patibility between internal prices and those ap- more on consumption and investment than it proplicable in foreign trade, or (which comes to the duces, the excess does not come out of the blue but same thing) between the price structures of differ- appears as a deficit on the current account of the ent countries, and this is the basic idea of the "pur- balance of payments. An examination of the tables chasing-power-parity theory" and, as such, is fun- containing data about the national product and its damentally correct. Statistically, it is easy to show uses, as given on previous pages for a number of that in the past there have been deviations from the countries, shows how, in actual figures, the deficit "purchasing-power parities" over a period of years; on the current account of the balance of payments but it is equally or even more interesting to note corresponds to the difference between total expendithe fact that when the price levels have had time to ture and the total supply of goods and services "settle down" (as they had done by 1928-29 after (whether on a gross or a net accounting). Logic the upsets of the first world war, and again by demands that it should be so; and the compilers of 1938 after the great depression) price relations, as the statistics relating to the national product have, calculated via the rates of exchange, show an un- in fact, to divide the amount of total supplies remistakable return to the old relationship. This ceived from domestic sources and from abroad bepresupposes, of course, that the basic year chosen tween total consumption and total investment. was a year of equilibrium, which was clearly the It is, however, no easy matter, even when surplus case as regards 1913. 1938 is less suitable, since it funds are available, to re-establish the currents of was a year of depression, with an abnormally small private international lending in a world so disvolume of trade on the world markets together rupted by political anxiety and labouring so heavily with unsettled conditions in several countries on under economic and monetary maladjustments, the continent of Europe. It is often preferable to with additional hindrances often put in the way of make comparisons with years further back as, for private initiative by hampering controls. To some instance, with the years 1928 and 1929. extent the lending markets must be prepared to con- After the first world war, it took up to the end template new forms of financing, partly in closer of the twenties, i.e. fully ten years, for price rela- contact with their governments, which will no tions between different countries to become more doubt be found anxious to assist, although they or less "normal." By the summer of 1949 only must not be expected to guarantee the whole risk four years had passed since the end of hostilities in involved. The International Bank for Reconstructhe second world war; and even a cursory examina- tion and Development is likely to play a greater tion of the available price indexes (wholesale prices, role as Marshall aid diminishes—and the initiative cost of living, export and import prices, etc.) would called for by President Truman's Point Four may, show that in a great number of countries no inner indeed, lead to new methods of investment in coherence had as yet been established. under-developed areas. It is to be hoped that, To get rid of high uncompetitive prices is surely whatever methods be adopted for the provision of one of the main conditions for the attainment of capital to old or new countries, the amounts will be adequate equilibrium in a country's balance of pay- made available without provisos as to their employments. At the same time, the experience of recent ment, for only then can there be any chance of years has shown that in many cases countries with multilateral trade's becoming a reality (and not a relatively moderate rise in prices (as calculated only an aspiration in high-sounding speeches). As via the prevailing exchange rates) have had larger reconstruction proceeds, the United States and deficits in their balance of payments than countries Switzerland should no longer be the only countries with a more pronounced price rise. There is, in with surplus funds to lend. In the British budget general, no mystery as to the explanation: the speech of April 18, 1950, the Chancellor of the amount of goods and services which a country can Exchequer said that the United Kingdom would sell abroad depends on the relation between the need to have some surplus in the balance of payvalue of its own output and its total spending for ments "to assist in Commonwealth and colonial consumption and investment: if the rate of domes- development"—and a surplus available for overtic spending is so high that relatively little will be seas investment presupposes, of course, that there left for export, low prices in themselves do not alter is in the internal economy a surplus of savings over the situation (that is one of the main reasons why domestic investments. the countries which devalued in September 1949 But for a real revival of international investment have generally been taking steps to keep down there must be evidence of improved conditions in spending through a restraint on increase in in- the countries which would receive the funds. Concomes, this being one of the means of setting more fidence has to be restored, and this calls for the fulgoods free for export). When a country spends filment of certain conditions, namely, a minimum AUGUST 1950 991 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE BANK FOR INTERNATIONAL SETTLEMENTS of political stability and positive action to strengthen course of 1946 price control was lifted in the United the monetary position with a view to restoring con- States, the remaining scarcities were largely revertibility. Obviously, these are conditions which flected in higher prices, affecting markets not only the individual countries will strive to fulfil in in the United States but in other countries also. their own interest. But it should also be remem- In the early months of 1949, the decline which bered that in international lending—especially to was taking place in the United States brought governments—^-appeal cannot be made to any ju- American prices below British prices at the current diciary and executive authorities in case of default rates of exchange and the discrepancy, which beand, for that reason, the past record of each coun- came wider in the course of the spring, was still try is a matter of great importance. Unless a coun- quite substantial in the autumn. This discrepancy try deals fairly with foreign investments and, in was one of the circumstances leading to the departicular, makes every effort to meet charges in valuation of the pound and consequently to the respect of past obligations, it is not likely to restore other devaluations which in September 1949 opened its credit position in regard to future borrowing. a new chapter in the postwar history of com- Much patient and constructive work will be needed modities. before international movements of capital can again A comparison with what had happened on the make a natural contribution to economic progress. commodity markets after the upheaval of exchange values in September 1931 shows, however, that the AN APPROACH TO MORE NORMAL PRICE RELATIONS effects of almost world-wide devaluations vary very The most conspicuous event in the economic and considerably according to the general trend of busimonetary field during 1949 was the wave of de- ness at the time—what is often called the "world valuations, which was clearly connected with reduc- conjuncture." In 1931 the devaluations occurred tions in reserves and shifts in the currents of trade as in the midst of a severe depression, and prices (as a sequel to the business recession in the United expressed in gold value) continued to fall sharply. States. But, the more closely one examines these In 1949, on the other hand, the devaluations coinvarious developments, the more one inclines to cided with a recovery in the United States and a the conclusion that the "master key" to this whole continuance of favourable business conditions in the series of events is to be found in certain important great majority of countries—which all helped to changes in the market prices of raw materials and sustain the general level of prices. It may be noted foodstuffs, reflecting a return to more normal condi- in passing that a great number of countries had tions of supply. been relatively unaffected by the recession in the So far as prices are concerned, an inflationary rise United States. A surprising case is that of Canada, is not the only consequence of a great war: there is, a country in which the situation used to be greatly in addition, a disrupting effect on the general price influenced by changing business conditions in the structure. For some prices rise considerably more, United States. Recently, Canada has shown a others less, than the average, it being impossible, strong dynamic trend of its own, and in 1949 it in the short run, to adjust supplies to sudden went on its way, unperturbed by the setback in changes in demand or to have new lines of produc- the United States. tion ready to make up for the disappearance of old Inevitably, the many devaluations tended at first sources of supply. During the second world war, to reduce the dollar prices for nondollar commodigreater efforts were made than ever before—and ties but, within one month, i.e. by the second half with some success—to keep prices down by means of October, this almost automatic movement had of government control, notwithstanding exceptional already spent its force. From then onwards the shortages; it was in the nature of things that the intrinsic position of individual commodities and the various measures were more effective in regard to strength of the upward business trend entirely goods produced and consumed at home than in neutralised the depressive influences arising from regard to commodities of importance in interna- the devaluations. First and foremost, the devaluational trade; and it was consequently found that tion decision as such removed one of the considerathe price indexes rose more steeply for import and tions which had induced manufacturers and traders export commodities than for domestic commodities. in hard-currency countries to refrain as far as pos- And the fact that the important raw-material-pro- sible from replenishing their stocks. Moreover, ducing areas in the southeastern part of Asia were official stockpiling was continued while unrest in involved in the second world war meant that a Malaya, Indonesia and some other areas in southnumber of commodities were in distinctly short eastern Asia gave rise to fears that current supplies supply, the shortage persisting for several years of key products such as rubber, tea, cocoa and oilafter the war was over. Consequently, when in the seeds would be adversely affected. Thus, prices 992 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE BANK FOR INTERNATIONAL SETTLEMENTS tended to stiffen, the only exceptions being crude more favourable import prices. As to the use of oil, the price of which remained unchanged, and such words as "benefit" and "favourable," there is tin, lead and lard, the prices of which have eased. one proviso to be made: a number of foreign coun- The two last mentioned are predominantly dollar tries, upon receiving somewhat smaller amounts in commodities; even in terms of dollars, sterling Swiss francs for their products, were not able to commodities held their position better than the buy Swiss goods on the same scale as before. In general run of dollar commodities (the opposite—it this connection, it is pertinent to remember that the would seem—of what might have been expected) low prices of primary products during the depresand it was largely thanks to this that the terms sion in the thirties proved to be no unmixed blessof trade for the raw-material-producing countries ing for the industrialised countries in Europe, since of the sterling area were as good as, or even more such countries found their exports seriously refavourable than, those they had enjoyed before the duced. On the other hand, in 1928, when the devaluation. terms of trade were not precisely favourable to the The upheaval in the price structure as a result of United Kingdom, the balance of payments of that the war affected various countries in very different country showed a surplus on current account, and ways according to the extent to which their export it was thus, in this respect, better off than in the prices rose in comparison with their import prices years of depression in the thirties. To obtain terms or, in other words, according to the changes in which clearly put its partner in an uneconomic their terms of trade. Most western European coun- position does not seem to profit any country; since tries are predominantly importers of primary prod- trade is a mutual affair, it naturally prospers best ucts and exporters of manufactured goods; and the when the primary producers as well as the manuterms of trade in the thirties, and especially in a facturing nations are able to cover their costs, and year of rather acute depression such as 1938—with this seems generally to be the case when no violent relatively low raw-material prices owing mainly to fluctuations are occurring in prices or business acweak American demand—were distinctly favour- tivity. able to the industrialised countries in Europe (cf. The year 1948 had already seen a general narthe table on page 110 of the nineteenth Annual rowing of the price changes in Europe, and 1949, Report, giving the terms of trade for the United on the whole, presented the same characteristic. Kingdom back to 1913). 1947 and 1948 were abnormal years, in which A YEAR OF SWEEPING CHANGES IN FOREIGN prices of most raw materials and foodstuffs were EXCHANGE RATES extremely high and only a few European countries (Switzerland being one of them) could charge cor- Since the gold standard, with its remarkable comrespondingly increased prices for their exports. The bination of unlimited freedom of transfers and fall in the prices of primary products, which began stable exchange rates, was first established in the in 1948 and gathered speed in the first half of 1949, course of the nineteenth century, there have been was therefore very much to the advantage of the only two years in which adjustments of foreign European countries (although the adjustment in it- exchange rates have been so sweeping that the exself caused certain difficulties, culminating in the pression "wave of devaluations" has been justified. situation which led to the changes in currency These years were 1931 and 1949. From a monevalues). tary point of view there were two outstanding characteristics common to both years: The devaluations, as was to be expected, largely reversed the favourable development of the terms (i) In the first place, they were not war years but of trade for the importing countries in Europe, fell within periods of postwar economic and finanespecially since, among primary products, even cial reconstruction. It was generally believed in sterling commodities rose so sharply that in terms 1928-29 that the world had then succeeded in setof dollars they became almost as dear as before. In tling down again to a more or less calm period of the United Kingdom itself, at the time of writing progress in production and trade. This belief, how- (in the spring of 1950), it would take 10 per cent ever, proved to be an illusion: too many questions more exports to buy the same amount of imports had been left unsolved for genuine balance to have as in August 1949. Denmark has, for the time being, suffered an even greater reverse. Italy, hav- been restored. About conditions in 1949 there was ing devalued by only 8 per cent, seems to have less illusion: the postwar adjustments had clearly been almost unaffected as far as its terms of trade not yet been completed; in itself, however, 1949 are concerned, while Switzerland (having retained was not mainly a year of disturbances but one in the value of its franc) has benefited by somewhat which very real improvement was shown in a num- 993 AUGUST 1950 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE BANK FOR INTERNATIONAL SETTLEMENTS ber of fields, and in that way it was a better year ern Europe, it must not be forgotten that Marshall than 1931. aid is still being received and supplementing inadequate domestic savings. Progress is being made (ii) In the second place, the impulse to the wave in restoring the monetary mechanism and establishof devaluations came, in both cases, from an altering a better balance in economic life, but there are ation in the exchange value of sterling. Although still many troublesome problems. One is how to a considerable number of depreciations and other obtain a sufficiency of domestic savings in the inmodifications in foreign exchange rates had ocdividual countries; and here, even if national recurred in the inter-war period and again in the sources have been increased by higher production, years after the second world war, it was not until it is, as a rule, still necessary to reduce excessive exsterling was affected that a stream of currency penditure—in particular on the part of the governchanges was released. About 36 per cent of all ments—weighing too heavily on the individual international trade is still financed in sterling. In economies. Another is how to strengthen moneitself this sensitiveness to changes in the value of tary reserves in order to provide a margin of safety sterling may be taken as proof of the central posiagainst hazardous developments; in many respects, tion that the British currency has held in the this question is bound up with the previous one, building-up and working of the gold-standard but it has its own peculiar aspects as well, as may system, which, despite all modifications in goldbe seen from an analysis of the supply and movemarket practices, etc., has not been really superments of gold—still the main component in moneseded as far as its main institutions and methods of tary reserves. financing are concerned. Gold is being accepted in exchange for national currencies, and, indeed, is PRODUCTION AND MOVEMENTS OF GOLD much sought after by the many countries which 1949 will remain a memorable year in the hishave to replenish their monetary reserves. tory of gold. New tendencies made themselves Devaluation is bound to produce a shock, and felt: the distribution of newly-mined gold was when, in addition, it was found that sterling and a more even than in the previous year and there was number of other currencies, although devalued by a striking fall in the prices paid for gold on free 30.5 per cent, continued to be quoted at a sizable and black markets—reflecting in the main a growdiscount in the markets for notes and for sterling ing confidence in national currencies. on transferable accounts, people not unnaturally 1. The output of gold in countries which regubegan to fear that the devaluation had been a fail- larly published figures of production rose from the ure, that nothing had been really settled, and that equivalent of 790 million dollars in 1948 to 820 years of depression might ensue, as had been the million in 1949 or by 3-4 per cent. No informacase after 1931. But by the beginning of 1950 a tion has become available with regard to gold prospirit of greater optimism had begun to make itself duction in the U.S.S.R. or the gold reserves accufelt. mulated in that country. It has been recalled that the upturn in the United The known output of gold is still some 30 per States business trend had already begun in the cent below what it was in the peak year 1940. No summer of 1949, i.e. well before the devaluations in common trend can at present be discerned: in some September. Thus, there is every reason to think countries government subsidies of various kinds that an increased American demand for raw ma- and (recently) devaluations have given at least a terials would have set in during the autumn even temporary stimulus, while wartime and postwar if there had been no devaluation. Similarly, an up- increases in costs continue to depress gold producturn in intra-European trade would most certainly tion elsewhere. have resulted from the liberalisation policy, irre- 2. There is a significant change in the distribuspective of the devaluations. A recognition of these tion of gold: for the first time since 1945 the United connections does not, of course, imply that the States has not absorbed the whole current output. rectification in price relations which the devalu- True, it added 164 million dollars to its gold reations helped to bring about vis-a-vis the dollar serves—which was more than any other country; area has been of no importance; and it also counts but this was only one-fifth of the reported output for something that a widely expected adjustment is and other countries were able to add 250 million now over and done with. But it would be palpa- dollars to their reported reserves. The only imporbly false reasoning to give the devaluations the sole tant net loser of gold in 1949 was the United King- —or even perhaps the main—credit for all the im- dom, and the whole loss was regained in the first provement which has taken place. quarter of 1950. A considerable number of coun- Moreover, in judging the state of affairs in west- tries added to their gold reserves in 1949, including 994 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE BANK FOR INTERNATIONAL SETTLEMENTS Italy, Switzerland, Canada, Belgium, Venezuela, widespread currency changes; but those changes the Netherlands, Uruguay and Cuba. There were fortunately came at a moment when they caused also some substantial additions to unreported gold little disturbance; in fact, they seem to have been reserves (without allowing for the wholly unknown one of the factors contributing to a greater balance changes in the U.S.S.R. holdings). in the monetary position of the world. 3. The increase in the reported reserves corre- In 1945 the time had come for European trade sponded to just over one-half of the new gold output to be resumed; but reserves were already scanty and in 1949. This leaves nearly 400 million dollars to it seemed a useful expedient to help trade along be accounted for. Probably a part, say, one-third, by the extension of credits between the various went into unreported official reserves, and perhaps European countries (by means of the famous 100 million dollars was taken by the arts. But "swings" in the payments agreements). When the there is still some 150 million dollars or more which limits for these credits had been reached and came has "disappeared"—having very likely been sold on to be exceeded, payments had in several cases to free or black markets. It is highly probable that be made in gold (i.e. in the means of payment additional gold from unreported production was internationally most acceptable) but reserves were sold on the same markets. running down and it was fortunate, indeed, that 4. These sales of gold have been one of the fac- a part of the arrangements made under the Marshall tors which helped to bring about a sharp decline in Plan was the payments and compensation scheme the prices quoted for gold in the free and black to ensure a continuing and growing flow of intramarkets. European trade without any too burdensome charge The decline continued in the first four months of on the monetary reserves of the weaker countries. 1950, exerting an important psychological influence Thanks to the improvements which have taken in many countries, since such a decline is taken to place, a new stage has been reached in 1950; but, signify an intrinsic strengthening of the value of the even so, it is proving no easy matter to determine, domestic currency. The collapse of gold prices is in the working-out of a new payments plan, to attributable less to the impact of the devaluations what extent credit facilities and gold payments can (which under different circumstances might easily be fitted together in such a way as to enable definite have had the opposite effect) than to the growing progress to be made towards full convertibility of evidence of internal recovery in western Europe, European currencies. including, in particular, the main gold-hoarding For convertibility to be resumed, with all that country, France. Influences from outside Europe this entails in the form of possible gold payments, worked in the same direction: namely, the check to it is, of course, indispensable that—in addition to hoarding caused by the communist victory in China participating in further international measures—the and the increase in the sales on free markets by individual countries should have established a suf- South Africa and some other producing areas. ficient balance in their internal economies and that, The currency changes of September 1949 had cast in so far as they require capital from abroad for their shadow before them; not only had transactions their own development, the foreign resources in been held up until the expected devaluations took question should have been procured by loans or in place but, in the spring and summer, funds had other ways in good time, so that when an import moved, clandestinely and otherwise, in search of surplus has to be paid for the foreign exchange is safety. In a large measure, the last three months of readily available. If arrangements are made for 1949 saw the logical reversal of these tendencies. short-term credit facilities for seasonal and other These are, however, essentially short-term effects. temporary purposes, a useful element will have The permanent consequences of the devaluations been added to the general credit structure; but such cannot be predicted on the basis of the experience facilities should not be put on a par with the availgained up to the present. ability of adequate monetary reserves in the free 1949 was less characterised than any other postpossession of the countries themselves. For counwar year by a one-sided and overwhelming flow of tries, as for individuals, monetary reserves serve to gold to a single recipient: the United States; and even provide a margin of safety and, in particular, a the substantial efflux of gold—mostly from the stermeans of gaining time, so that such readjustments ling area—in the spring and summer was quickly remay be made as the particular situation may reversed in the autumn and the losses fully made good quire. A considerable number of countries have in the opening months of the following year. It altogether inadequate reserves. In April 1950 the may seem somewhat strange that a year which in United Kingdom had gold reserves second only to retrospect is conspicuous for a more even distributhose of the United States, and yet the Chancellor tion of new gold should also have been a year of AUGUST 1950 995 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE BANK FOR INTERNATIONAL SETTLEMENTS of the Exchequer, in his budget speech on the 18th was put to a long period of inflation; in France of that month, expressed himself as follows: and the Argentine, expansion was at the rate of 30 per cent, and in Greece it even exceeded 50 per "It is the smallness of our reserves much more cent, with substantial increases also in Australia, than the unavoidable degree of fluctuation in our Germany, Italy, Finland, Brazil and Egypt; while earnings that is now our real trouble. That is why China still had to cope with an inflationary rise in we must build up those reserves in every way we its note circulation (that country being the most can, so as to have more in hand to meet the quite conspicuous exception to the rule of general imnormal and inevitable fluctuations in the dollar inprovement). come of the sterling area when Marshall aid ends In judging the significance of these various movein 1952." ments, account must be taken not only of changes Other countries may not have the same large in the volume of money (note circulation or notes actual and potential commitments as the United plus deposits) but also of the supply of goods and Kingdom but they, too, need an adequate backing services on which the money can be spent and of the in gold and foreign exchange. The problem of prices at which they are purchased. If adjustment replenishing reserves cannot be dealt with as an is made for the rise in prices, the resulting picture isolated one, for it touches upon many aspects of is already more realistic, but account must also be the question of attaining a sufficient internal and taken of any increase in production (which may external balance in each economy and, in the inter- best be measured by the estimates of the national national field, of establishing propitious conditions income). There is also the possibility that the for foreign trade and payments. Attention has public may want to hold larger quantities of money obviously to be given to these questions in the utili- in the form of cash, as occurs, for instance, when sation of Marshall aid in the different countries. confidence is restored in a currency which had It seems quite clear that in the remaining part of previously been depreciating rapidly. the recovery programmes one of the main tasks The weight of these considerations may be exshould be to build up monetary reserves, especially emplified by the developments in a few countries. now that the original production targets have been It might be thought that the United States is reached or surpassed. No real stability will be suffering from a serious excess of money, since the created in Europe before the reserve position of note circulation at the end of 1949 was more than most of the continent's monetary authorities has four times—and the note circulation plus bank been strengthened—and only then will the countries deposits more than three times-—as large as in 1938, be able to dispense with foreign aid. while wholesale prices had barely doubled in the same space of time. But, as a joint result of the MONEY, CREDIT AND INTEREST RATES rise in prices and a great rise in production, the A return to more normal monetary conditions total of the national income is more than three times has been part of the general improvement which as large as before the war and this means that the has taken place during the last few years and which apparent excess of money has been almost wholly is characterised fundamentally by a better balance absorbed. The note circulation in itself still correbetween the quantity of money and the quantity sponds to a rather higher proportion of the national of goods, prices ceasing to move sharply upwards income than before the war, but some slight increase or downwards, exceptional shortages disappearing, may be taken as normal, since there are a number of and rationing, allocation and similar forms of con- people who, previously poor indeed, are now better trol being gradually removed. paid and can therefore hold a larger amount of The same stage has not been reached, however, their income in notes7 as cash, than they could in all countries, and the movement necessary to formerly. restore equilibrium is not always in the same direc- In Italy the note circulation increased between the tion. The note circulation fell in some countries end of 1947 and the end of 1949 from 795 to 1,057 but remained relatively stable in others, while billion lire, i.e. by 33 per cent. During the same there were a number of cases in which the amount period prices fell somewhat, but the increase in the of notes outstanding continued to rise. The circu- note circulation was absorbed to some extent by a lation fell in countries as different from one another rise in production and also by a slowing-down in as the United States, the Netherlands, Switzerland, the velocity of circulation (which is equivalent to India and Czechoslovakia; a small or negligible the holding of more cash for current purposes); increase occurred in the United Kingdom, the The relation between the money volume and the Scandinavian countries and Belgium; and the same national income is clearly a more reliable touchwas the case in Austria and Japan, where an end stone than changes in the money volume considered 996 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE BANK FOR INTERNATIONAL SETTLEMENTS by themselves. It is interesting to note that in the the war, before the extreme cheap-money policy countries where the exceptional shortages have been of the immediate postwar period had had its effect. most successfully overcome, where controls have In the group under review the country which been abolished and where prices are fairly steady, has gone farthest on the way back to equilibrium is the money volume is again tending to represent the Netherlands, where three effective methods of about the same fraction of the national income as absorbing an excessive volume of money have been before the war. It would seem as if the economic adopted: a monetary reform (including a decisive changes resulting from the war and the fact of ex- cut in the amount of notes and free deposits), an inperiencing downright inflation had had less effect crease in production, and an increase in prices. upon the public's habits in making payments and Moreover, most of the counterpart funds received in holding notes and deposits than might have been connection with Marshall aid have been sterilised expected. on an account in the Nederlandsche Bank (cf. page Prewar experience also indicates that these habits 196 of the nineteenth Annual Report). Wholesale are changed only slowly and that, while in periods prices in the Netherlands rose by about 70 per cent of crisis the public may hold for a time an abnor- between 1945 and 1950 and by more than 190 per mally large or small amount of cash, it tends to cent between 1937 and February 1950. restore its holdings to their previous level as soon Three countries—Italy, France and Greece—may as the emergency ends. The relation of the note be taken as representative of the group in which circulation to the national income varied very little the money volume has been below the normal probetween 1920 and 1940 in Canada, Sweden and the portion but rapid rises have taken place recently. United Kingdom. In the United States it rose No adequate estimates of the national income are abruptly during the depression and then settled available for Greece but it is possible to compare down at a higher level. In the Netherlands and the increase in money with the increase in prices. Switzerland movements were more erratic. In Italy the prewar relation has been re-established The group of countries in which the quantity —primarily as a result of an unusually rapid exof money is now in about the same relation to the pansion of the volume of money—so that there is national income as immediately before the war obviously no justification for any talk of a "credit includes the United States, Belgium and Switzer- deflation" in that country. In Greece the money land. supply is still small as compared with the prewar In all three countries the quantity of money was ratio but, as the Greeks have been through several excessive at the end of the war. In the United periods of extreme inflation within one generation, States, wholesale prices rose by some 50 per cent the credit institutions of that country can hardly from 1945 to 1948, while money ceased to increase count on more than a very slow return to the degree appreciably after 1946. In Switzerland prices had of confidence which prevailed in the years before already risen during the war, but production rose the second world war. year by year after the war and there was an even In France, the total money supply is now relagreater increase in the supplies of available goods tively smaller than in 1938, but that was a year of (thanks to the recovery in foreign trade). In Swit- monetary troubles, with disequilibrium in the balzerland, the relation of the money supply to the ance of payments; an additional reason for caution national income is still rather high, though there is is the fact that the volume of credit granted to no doubt that inflation has been ended and eco- business is now relatively greater than before the nomic equilibrium restored; the surplus money war. probably represents hoards of Swiss francs in for- This is just the opposite of what has happened eign hands. In Belgium, where the active money in most countries. In relation to the national involume had been reduced by a currency reform in come, credit shows the greatest decrease in Belgium the autumn of 1944, it would seem that between —a country which, since the war, has applied a 1946 and 1948 production rose by one-quarter firm policy of credit control for the maintenance and prices by some 35 per cent. of equilibrium internally and in its balance of pay- A second group of countries comprises those in ments. In addition, it is very likely that in Belwhich the excess of money accumulated during the gium credit conditions are influenced by the same war has not yet disappeared. These include the general factors as in the other countries, where the United Kingdom, the Netherlands, Denmark, Fin- ratio under review is distinctly lower than before land, Norway and Sweden. In the United King- the war. One important general reason for this dom there has been a marked improvement as development is no doubt that many business firms compared with 1946 but it has only gone far enough were able to accumulate substantial reserves during to re-establish the position recorded at the end of the war and, in the postwar period, have been mak- AUGUST 1950 997 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE BANK FOR INTERNATIONAL SETTLEMENTS ing good profits of which a considerable part has which had been continued in France in the postbeen ploughed back into the business, with the war period, the imposition of rather sweeping reresult that they can finance themselves to a greater strictions—especially of a quantitative character— extent than before the war. Moreover, in some in the autumn of 1948 played a considerable role countries, where commercial banks (and not only (as explained on page 170 of the nineteenth Annual savings banks) used to extend credits for invest- Report). The restrictions applied, of course, essenment purposes (in the form of mortgages, etc.), a tially to credits granted by banks, and they were sudden rise in prices will have increased the reinforced by rates for commercial credits rising to nominal amount of the national income but not 6, 7 or 8 per cent. Long-term rates were also the amount of long-standing financing via the affected: the yield of 3 per cent rentes rose from banks. 4.48 in December 1947 to 4.67 per cent in Septem- In France, where the credit ratio is abnormally ber 1948 and to 5.18 per cent in February 1950. high in comparison with prewar, this increase The stricter credit policy has compelled traders to seems to be due partly to the fact that sudden rises release surplus stocks and exporters to sell to the by as much as 40 to 60 per cent a year in prices and exchange control the full amount of their receipts wage costs ruled out any such growth in the in foreign currency. It has thus helped in elimvolume of self-financing as occurred in other coun- inating the shortage of goods at home, in stopping tries, and partly to the lack of activity in the capital the rise in prices and in halving the deficit in the market, which not only made private business balance of payments. And these advantages have firms rely to a greater extent on bank credit but been accompanied by an increase in industrial proalso caused nationalised enterprises to finance their duction by 10 per cent in 1949, while unemploydevelopment largely by recourse to the banks. ment has remained at a low level (40,000 to 65,000 Credits to such enterprises are shown as a part of in the winter of 1949-50 as compared with a monthly ordinary business credits, whereas in the statistics average of 374,000 before the war, i.e. in 1938). of the capital market a distinction is made be- Complaints having been heard of an undue retween the two different classes of borrowers: in striction of credit, some alleviations have gradually 1949 nationalised industries raised a total of 14 been allowed: thus in April 1950 the limit at which billion French francs (not quite equal to 50 million the authorisation of the Bank of France was redollars) on the capital market, while business firms quired for certain bank advances was raised from raised 64 billion francs (equal to about 200 million 50 to 100 million French francs. And the redisdollars), of which a part merely represented the count "ceilings" limiting the amount of bills which reinvestment of the proceeds of securities redeemed. each bank could rediscount with the Bank of France In the countries in which the velocity of circu- have also been raised. As a matter of fact, there lation is slowing down—which implies a form of has been a continuous expansion of the volume of saving, in that individuals and firms hold more credit: the restrictions have only served to keep it cash—a quite exceptional opportunity has arisen within reasonable limits. for an expansion of the margin of credit. Use was The yearly increase in the volume of business made of similar opportunities in the reconstruction credits was at the rate of 59 per cent in 1947, 80 per period after the first world war, for example, by the cent in 1948 and 39 per cent in 1949. It is remark- German Reichsbank in 1923-24, and now it has able that under the existing regulations so large an again been possible to profit by the same concate- increase could be obtained. The fact is that the nation of circumstances. The experience gained in rediscount ceiling allowed a margin for some exthe twenties, however, was that these decidedly pansion, besides which the banks could obtain, temporary possibilities of credit creation are soon temporarily, certain additional funds from the exhausted and that at a certain moment a halt must Bank of France and they could also discount be called. It is not at all certain that the circula- medium-term securities with the Credit National. tion can be safely expanded until it reaches pre- In addition, it was decided in March 1950 to allow cisely the same relation to the national income as special credit facilities for the accumulation of stocks in a given year before the war. Much depends of butter and for exports. Taken as a whole, the upon the way in which the expansion takes place; credit control cannot be said to have been too harshly if the increase in the domestic means of payments applied; rather, it would seem that the expansion corresponds to an accumulation of monetary re- allowed has been the maximum that could safely serves in, say, gold and dollars, there will be assets be undertaken; and it is, therefore, of interest to available to meet any strain which the larger cir- note that in the first quarter of 1950 for the first culation may provoke in the balance of payments. time in many years no further expansion occurred In the overcoming of the strong inflationary trend in the credit volume. 998 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE BANK FOR INTERNATIONAL SETTLEMENTS In addition to business credits, the banks' hold- without inflation and without unfavourable effects ings of public securities have also increased. The on the balance of trade. Gross investments difference between total government expenditure amounted in 1949 to about 20 per cent of the and revenue still remains large, amounting to 485 national income. In 1949, in conspicuous conbillion French francs in the estimates for 1950 (of trast to former years, the financing of the governwhich 250 billion is to be covered by the counter- ment's deficit did not involve recourse either to the part of Marshall aid). There was an increase of Bank of Italy or to the commercial banks on any 65 billion francs in 1949 in the banks' holdings of substantial scale, sufficient funds being supplied by government securities; on the other hand, the direct foreign aid, the postal savings system or the market. advances by the Bank of France to the government Production and employment figures have risen increased by only a negligible amount, the legal but, owing to the rapid increase in the population, ceiling for current state borrowing from the Bank difficulties have been experienced in finding work of France being lowered from 200 to 175 billion for all the new recruits to the labour force. Early francs. The government borrowed considerable in 1950 the Minister of the Treasury announced sums from the savings banks and postal-cheque plans for spending 120 billion lire annually over system. a period of ten years on the development of southern Both note circulation and bank deposits have Italy, these schemes to be financed through a special continued to rise, the total money supply increasing new institution. A further move towards a freer by one-third in 1948 and one-quarter in 1949. credit policy was the reduction of the discount rate A new important source of credit expansion has from 4!/4 to 4 per cent on April 6, 1950 (the rate been the advances by the Bank of France to the Ex- had been reduced from 5% to 4/? per cent on April change Stabilisation Fund of 43 billion French 9, 1949). francs, together with the rise in the Bank of France's Even more than Italy, Greece has been affected holdings of foreign exchange, indicating a rise of by war and internal conflicts, it being only in 1949 about 300 to 350 million dollars in France's foreign that fighting in that country came to an end. For reserves. As long as the Exchange Stabilisation these reasons, rehabilitation has been delayed, but in Fund was being called upon to sell foreign ex- many respects impressive progress has been made change, it took in corresponding amounts of francs during the last two years, the volume of industrial and was, in fact, for years a source of supply for production reaching the prewar level by the end of the Treasury, to which the amounts in francs were the year and agricultural production being then delivered. It was, however, soon faced with con- within 25 per cent of that level. In the credit sphere, siderable losses in francs on forward operations the great difficulty is that after such monetary as a result of the adjustments in exchange rates and debacles as the Greeks have experienced it is not also on account of the French multiple-rate ex- easy to restore confidence in the national currency. change system. When the trend turned, the Fund In Germany, as in Austria, the monetary mechanhad not enough resources in French francs to buy ism was for a number of years put almost out of the inflowing foreign exchange. Since the Treasury action by an enormous redundancy of money in was also short of funds, it was arranged that the relation to the wages paid and the few goods avail- Fund should obtain advances from the Bank of able at the officially controlled rates and prices. But France—on condition, however, that, when it sold at one stroke a more far-reaching measure than was exchange, it should use the proceeds in French ever taken in Austria was applied in the three zones francs to repay these advances—the new arrange- of western Germany when the monetary reform of ment representing an important step towards a nor- June 1948 cut down the volume of means of paymalisation of the French monetary system. ment by over 90 per cent. This produced a need In Italy also, quantitative credit restrictions as for a larger circulation, and the degree of liquidity well as higher interest rates have played a great of the commercial banks allowed them to give role in the restoration of more effective financial much fresh accommodation, short-term business stability after years of inflation. But that lias not credits rising from 1,244 million Deutsche marks in meant that no new credits have been granted: the July to 3,550 million in October 1948. There being volume of credit increased by about the same then certain signs of an incipient inflationary rise amount in 1948 and in 1949 as in 1947, in the in prices, the Bank deutscher Lander raised reserve autumn of which year the credit measures were requirements, trying to persuade the various banks taken. not to increase the total amount of their credits be- The receipt of foreign aid and the growth of yond the amount existing at the end of October domestic savings have made it possible to finance 1948; at the same time the Bank deutscher Lander both the budget deficit and private investments stiffened the qualitative regulations for rediscounts. AUGUST 1950 999 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE BANK FOR INTERNATIONAL SETTLEMENTS In November 1948 wholesale prices ceased to rise further raised to 1,500 million if the Board of Diappreciably, and early in 1949 they even fell some- rectors of the Bank deutscher Lander approved what. such a step by a majority of three-quarters (such This change in the trend permitted the Bank approval was given in May 1950). deutscher Lander to take the following steps to ease credit conditions: But, even before these recent measures, credit was expanding at an extremely rapid rate. (i) the official rate of discount was reduced first Thus during 1949 the short-term credits extended from 5 to 4% per cent and then to 4 per cent; by the commercial banks more than doubled, while (ii) the minimum reserve requirements were re- medium- and long-term credits expanded even duced (also in two stages): the reserve ratio for more rapidly although a part of this increase was time deposits was lowered from 5 to 4 per cent related to old reichsmark credits converted into and for sight deposits from 15 to 10 per cent or Deutsche marks. Partly as a result of this grantfrom 10 to 8 per cent, according to the category of ing of fresh credits, the banks' liquidity gradually the bank concerned; decreased. While in 1948 the banks held large excess reserves with the various "Landeszentral- (iii) the qualitative requirements for rediscounts banken," these excess reserves were very slight at were relaxed and the "stop order" for bank credits the beginning of 1950, in spite of the fact that dur- —which does not seem to have been very effective— ing 1949 the minimum reserve requirements had was cancelled. twice been lowered. Refugees continued to enter western Germany; The actual amount of the commercial banks' reand, in order to help in procuring employment for serves was reduced by the withdrawal of notes by them, some further expansionary measures were the public (the note circulation increasing by 1,100 taken, first in August 1949 and again early in 1950: million Deutsche marks in 1949) and also, from the middle of 1949, by the large import surplus (i) In August 1949 the Bank deutscher Lander and new regulations for the financing of foreign decided to encourage the granting of medium-term trade, which resulted in heavy in-payments to the credits for long-term export orders or for investcentral banking system, while, owing to delay in ment purposes by purchasing from the banks a the release of counterpart funds, out-payments limited number of their equalisation claims (that is, were relatively small: the relevant accounts of the the so-called "Ausgleichsforderungen," which were system (creditor and debtor foreign accounts as well given to the banks, as part of the monetary reform as the credit balances with foreign banks and the in 1948, in lieu of cancelled assets to enable them liabilities of the Joint Export-Import Agency) to balance their positions). showed a net credit balance of 591 million Deutsche (ii) Early in 1950, the Bank deutscher Lander marks at the end of June 1949 and a net debit balagreed to various expansionary measures, while ance of 1,387 million Deutsche marks at the end of stipulating that the central-bank credits should as 1949. far as possible be transitional, i.e. consist of tempo- In the early months of 1950 there have been rary advances, in anticipation of future proceeds various signs of greater moderation in the expanfrom long-term loans and grants, and not represent sion of credit, which had been exceedingly rapid permanent financing. The Bank deutscher Lander during 1949. At the same time, the trend of savdeclared itself ready to help, if necessary, in pre- ings by the general public is again upwards, after a financing nearly 900 million Deutsche marks of a setback in the autumn of 1949: for the early months new housing programme (the total of which would of 1950 the in-payments into savings accounts work amount to 2,500 million) and also 900 million of a out at an average rate of 132 million Deutsche special programme amounting in all to 950 million marks a month. In addition, receipts by insurance Deutsche marks. companies and payments into savings accounts of various associations (for building purposes, etc.) (iii) It was, moreover, agreed that counterpart have continued to increase almost uninterruptedly funds would be released as quickly as possible. since the monetary reform. (iv) The ceiling (fixed by law) on advances As already mentioned, an excessive money supply from the Bank deutscher Lander to the Federal was also characteristic of Denmark and Norway Government was raised, after agreement by the as a result of the financing of the military occupa- Allied High Commission, from 560 to 1,000 mil- tion. Of the other northern countries, Sweden, lion Deutsche marks in December 1949 and it was having been neutral during the war, had no parat the same time provided that the ceiling might be ticular difficulties in this respect, while the in- 1000 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE BANK FOR INTERNATIONAL SETTLEMENTS flationary trend was strongest in Finland, which rise in prices. While Norway maintained cheap had been through two wars. money, the Bank of Finland raised its discount rate The most effective action for lessening the money during 1948 to 7lA per cent. supply was taken in Denmark, where in the years As a result of an increase in the real national in- 1946, 1947 and 1948 the volume of notes in circula- come and a slight fall in the note circulation, the tion and of demand deposits with the National excess of money in the Netherlands, which resulted Bank was reduced, in all, by 2,400 million Danish from the war and had only been partly removed kroner through various measures of monetary re- by the monetary reform in 1945, has now been very form, including special allocation of the proceeds of nearly eliminated. The total of blocked money, certain taxes. The contraction is most clearly seen which was as high as 6,800 million florins in 1945, in the combined returns of the commercial banks. has been brought down to about 1,100 million. There is a significant reduction in the amount That it has been possible to approach monetary of cash plus balances with the National Bank held equilibrium in the Netherlands during the two by the commercial banks. In the balance sheet of years 1948 and 1949 is mainly due to the accumulathe National Bank the reduction is shown in the tion (and sterilisation) of nearly 1,000 million "regulation account," which had originated in florins in local-currency funds (i.e. Marshall aid the financing of the occupation and which de- counterpart funds), by which credit creation to the clined by 330 million kroner in 1949. extent of about 1,500 million florins has been partly The process of cutting down the money supply neutralised. was not continued during 1949: the total of notes In Belgium an increase of 2.3 billion Belgian outstanding and of the demand deposits held by the francs in the gold and foreign exchange reserves of economy at the National Bank increased by 45 the National Bank was the main single cause of the million kroner and deposits with the commercial increase in the supply of money during 1949. There banks also increased for the first time since the end was an increase of over 5 per cent during 1948 and of the war. The government budget surplus and about 3 per cent during 1949 in the note circulaits net sales of foreign exchange again withdrew tion as well as in the total money supply—which money from the economy, no appreciable releases indicates that there has been no credit deflation being made from counterpart funds; but the gov- but rather an expansion keeping pace with the inernment offset their deflationary effect by making crease in real income. debt repayments in cash, in order to prevent a further stiffening of interest rates. The yield of gov- More than in any other country, conditions on the ernment securities had risen from 3.55 per cent in money and capital markets in Switzerland have 1946 to 4.40 per cent at the end of 1948; it did not been characterised by a high degree of liquidity— rise further in 1949. so high, indeed, as to be distinctly embarrassing. The annual report of the National Bank for 1949 The situation is the result of: mentions that at the end of that year the amount of (i) a continued high rate of saving in Switzercounterpart funds and proceeds of other credits held land at a time when, with a slight business recesat the National Bank came to 1,109 million kroner sion prevailing, there was a decline in the demand and that the Bank took the view that this amount for fresh accommodation; should be written off on the regulation account and (ii) the emergence in 1949 of a current surplus not be put into circulation again. The development of probably more than 700 million Swiss francs of the exchange position must, of course, be watched in the balance of payments after deficits of 300 to with the greatest attention; and the Bank holds that 425 million francs in the two previous years. "the economic policy of the country, while taking account of employment, should be framed in such a It is very difficult to tell whether in 1949 there way as to fulfill the requirements of balance in pay- was, on balance, a net influx of capital in addition to ments relations with foreign countries." the surplus on current account. In any case, the In its monetary policy Finland forms a striking increase in the monetary reserves of the National contrast to Norway. At the end of 1948 the vol- Bank was reflected in an increase in the Bank's deume of money (note circulation plus deposits) had mand liabilities (i.e. deposits with the Bank), while increased since 1938 by twelve times in Finland, the note circulation tended to decline. by eight and a half times in Norway. But, whereas Account must be taken of the operations of the in Norway prices had been allowed to rise only 80 Old Age and Dependents' Insurance Fund (the per cent above 1938, so that a large surplus re- A.H.V.) which, instituted in 1947, has been acmained, in Finland the greater part of the increase cumulating funds on a much greater scale than was in the supply of money was absorbed by a tenfold anticipated. Its investments increased by 452 mil- AUGUST 1950 1001 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE BANK FOR INTERNATIONAL SETTLEMENTS lion francs in 1949 and, since they were practically ures). In that period there was no longer any subconfined to securities placed by public authorities stantial over-all budget surplus available for debt or semi-official institutions, they took a dispropor- redemption but Marshall aid counterpart funds tionate share of the "safer" investments. were used for repayments of short-term debt. The In order to reduce the redundancy of funds in reasons why such repayments did not cause a more the market, the Federal Government has decided conspicuous reduction in the volume of the banks' not to let its credit balance with the National Bank assets and liabilities may be stated as follows: fall below 200 million francs and to resume its (i) The British banks operate with a cash ratio of policy of sterilising gold, the Treasury taking over 8 per cent (leaving out of account minor variagold from the National Bank. The sterilisation is tions); the amount of cash held by them depends to be applied to all gold held by the National Bank essentially on the day-to-day operations of the Bank in excess of its stock as of mid-March 1950. The of England. Except for seasonal variations, there government has also decided to convert long-term has been practically no change in their cash for bonds and to repay only short-term rescriptions and two years and thus the banks have been able to Treasury certificates. maintain an almost unchanged total of assets. Switzerland is in a unique position in that it is Among those assets, there has been an increase in the only country in Europe with a surplus of advances, which must be said to have been welldomestic savings available for foreign lending, this nigh unavoidable in a period of rising prices and surplus being all the more effective since the Swiss which has been compensated for by the repayment authorities have no need to strengthen the counof government debt (reduction in T.D.R.). try's monetary reserves. Most of the other coun- (ii) The receipt of Marshall aid and other fortries are still rinding it difficult to restore smoothlyeign funds, even if the counterpart in sterling is working markets for domestic borrowing, there beused for debt repayment, does not, of course, in ing almost everywhere a scarcity of savings—espeitself lead to a contraction in the volume of money; cially for investments at long term and involving a it is necessary to examine what "real" uses are made risk. Financing of current foreign trade has preof the resources obtained. sented less difficulty: the banking machinery for short-term accommodation has mostly remained in- In 1949 gold and dollar receipts amounted to 380 tact and in a position to meet demands. In the million pounds but the deficit on the current acfield of financing of international trade, the main count of the balance of payments was only 70 milmarket has continued to be the London market, lion. The remaining 310 million pounds reprefunctioning under conditions in which the hamper- sents "unrequited" exports to other countries or ing effect of the exchange regulations is not too payments in gold and dollars on their behalf, such greatly felt. transactions resulting in a reduction of sterling lia- While, as regards its foreign exchanges, the bilities and an increase in the United Kingdom's United Kingdom passed through a year of dis- foreign assets. In so far as foreign aid was passed turbances in 1949, there were practically no reper- on to other countries in these ways, it is evident that cussions upon the internal credit situation, which it could not be expected to reduce the domestic on the contrary showed signs of increased stability. supply of money; but the money supply was not Net deposits (i.e. the total of deposits excluding reduced even by the 70 million pounds of aid recheques in course of collection) increased by only tained in the United Kingdom. This aid served 50 million pounds in 1949, as compared with a rise to finance the excess of investment over savings of 232 million in 1948 and 244 million in 1947. which, had it not been for the resources made avail- In the short-term indebtedness of the government able from foreign aid, would have had further to the banks, there have been during the year two inflationary effects and increased the pressure on important modifications: a reduction in the total the banking system. In effect, foreign aid served and a shift in the form of the indebtedness. Treas- to finance an equivalent volume of expenditure ury bills have been substituted for the less flexible on either home or foreign investment. In neither Treasury deposit receipts (T.D.R.), the latter hav- case were there any proceeds of foreign aid devoted ing been reduced by about one-half. to a contraction of the volume of money. From March 1949 to March 1950, the govern- The decline shown in deposits from March 1949 ment's short-term indebtedness to the clearing to March 1950 is the first decline in a twelve-month banks (comprising bills and T.D.R. but not includ- period for a decade. While the note circulation ing the holdings of long-term government securi- increased in absolute amount during 1949, the ties, which form the bulk of the banks' investments) end-of-year figure represented a smaller proportion was reduced by 275 million pounds (in round fig- of the national income than had been the case at 1002 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE BANK FOR INTERNATIONAL SETTLEMENTS the end of 1948—this being an unmistakable sign tain a fairly fixed pattern of rates. In June, howof at least a halt in the money expansion of the ever, the Federal Reserve System somewhat changed war and postwar period. its policy: yields were falling in the market and In the short-term market, the cheap-money policy a maintenance of the established pattern would has been continued—the rates payable on Treasury have required further sales of securities by the Fedbills and other short-term obligations being appli- eral Reserve Banks. The Federal Reserve Open cable to a considerable part of the liabilities accumu- Market Committee, after consultation with the lated during the war. But the long-term market Treasury, then announced that "under present conhas been regaining its flexibility, with quotations ditions the maintenance of a relatively fixed pattern fluctuating in response to supply and demand with- of rates has the undesirable effect of absorbing reout any artificial support by newly created central- serves from the market at a time when availability bank funds. of credit should be increased." An official sign of the acceptance of a higher level There seems little doubt that readiness to adopt of long-term interest rates came in November 1949, a more flexible policy even for long-term interest when the Agricultural Mortgage Corporation raised rates is making headway in the United States, and its charges for mortgage loans from 3l/ to 4 per the same can be said of Europe. A most important 2 cent. In May 1950, for the first time since before step in that direction has been the acceptance of the war, a gilt-edged loan was issued at 3]/ per flexible market rates for long-term government 2 cent: the British Electricity Authority borrowed 150 securities on the London market in the summer and million pounds at an issue price of 99 per cent with autumn of 1949. Soon the market reached a new a government guarantee. level (with yields of 3.6 to 3.8 per cent), at which Since short-term rates have been kept at the low operations have taken place without any artificial level of ]/ per cent for Treasury bills (and % per support by the monetary authorities. 2 cent for T.D.R.), the difference between short- and The danger involved in a policy of supporting long-term rates has progressively widened. The the market is not only—and perhaps not even prishort-term rates used to move much more freely marily—that too low rates of interest may be enthan the long-term rates, providing, so to say, a forced but that the newly created funds brought cushion against sudden changes in the cost of long- into the market by the central bank cause an artiterm financing and in that way helping to main- ficial abundance of money liable to distort the scale tain equilibrium in the credit system without any and direction of expenditure both for consumption precipitous or untimely repercussion on the long- and for investment, and also to promote undesirable term rates, which are more important as regards movements of capital abroad and at home. Often the provision of capital for industry. the addition to the volume of monetary purchasing In the United States—in direct contrast to the power comes at the wrong moment from a credit credit policy of the British authorities—long-term point of view. rates have been strictly pegged throughout the While these dangers may be fully conceded, it postwar period (at a yield of around 2l/ per cent), is often thought that a fall in the quotations of 2 while short-term rates have been raised several government bonds, which is tantamount to a rise in times—from about % per cent for one-year certifi- long-term interest rates, may have many undesircates in 1945 to \lA per cent in 1948. It proved able consequences. possible for the Federal Reserve System to offset Thus, it is argued that a rise in the level of its purchases of bonds by sales of bills, certificates interest rates may lead to unemployment. But and notes without any but purely temporary in- rates have been raised in France without any such creases in the System's total holdings of government result; as far as Italy and western Germany are securities. concerned, unemployment there has clearly not A principal aim of the monetary authorities in been caused by contraction of credit but is of a the United States has been to "preserve orderly structural nature, while in Belgium it is rather a conditions in the market for government securities." question of adjusting the economy to an increase In general, this has meant that the Federal Reserve in costs and particularly in wages in comparison Banks purchased long-term bonds to prevent the with prewar levels. In all the other countries price from falling, while selling bills in order to where no special difficulties have been present, a narrow the margin between short- and long-term high rate of employment has been found in coninterest rates. In 1949, for the first time in the junction with very different types of monetary postwar period, the market prices for securities policy. tended to rise above the support prices and the Reference may also be made to the increase in authorities then sold both bonds and bills to main- the debt service if interest rates go up sharply. But AUGUST 1950 1003 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE BANK FOR INTERNATIONAL SETTLEMENTS even here the additional cost may easily be over- easily be paid, but once prices have become stabilised estimated: the higher rates do not affect the cost it is a more difficult matter. When it comes to of debt already funded (which is generally two- lowering the rates, the trouble is, in the first place, thirds or more of the total); secondly, it may not that, in cases where prices have risen 20 times (as be necessary to raise the short-term interest rates in France) or 50 times (as in Italy) since 1938, very much or for very long; thirdly, a part of the it takes strong medicine to overcome general misincreased debt service returns to the state in the trust in the currency and, in the second place, that form of tax payments; and, fourthly, it often hap- as long as the budget shows substantial deficits pens that a high proportion of the short-term debt and thus absorbs a large part of the current domestic is held by government departments, agencies and savings, the high rates are needed to restrain the trust funds, in which case the meeting of the debt outlay for investment on private account. In order service merely involves payments inside the govern- to bring down the rates to more usual levels, it ment machinery. is obviously not sufficient simply to prescribe that It has also been feared that, with public debts banks and other credit institutions shall charge less as large as they often are in these days, a fall in when funds are lent; for the quotations of securisecurity prices, especially if it came after a period ties and thus the actual yield are largely determined of artificially cheap money, would lead to specu- by supply and demand in free markets. It is neceslative excesses and cause capital losses to financial sary to attack the causes of the high rates and, in institutions. But here the experience of the London that connection, to improve the budget position— market—where the 2% per cent consols fell from a matter which in any case becomes more and more a price of 98.4 in January 1947 to 69.1 in Novem- urgent as Marshall aid diminishes. In Italy the ber 1949 without any untoward consequences— particular problem of relatively high costs for the would seem to show that the dangers may loom distribution of credit is more acute than in most larger than they really are. other countries. This is connected with the fact In countries which have adopted an income- that, in 1949, bank deposits, when adjusted for the stabilisation policy, as has been done in Scandinavia, rise in commodity prices, were still only two-thirds there is the further fear that an increase in the of what they had been in 1938, while for a number cost of financing building activity and a consequent of reasons the staff of the banks had increased. Thus increase in the amount charged as rents would lead the amount of deposits per employee was only about to a breach of stability and thus imperil adherence one-half of the corresponding prewar amount— to the general lines of policy followed. Much will, necessitating an unduly large spread between the of course, depend upon whether in the countries in interest rates paid for deposits and the rates charged question the general trend of prices allows stabilisa- for credits. Here there is an obvious need for tion to prevail. Should the stabilisation policy measures which will help the Italian banks and have to be abandoned or greatly modified, the other financial institutions to bring down their change would presumably involve a diminution costs. The avoidance of excessive interest rates is of direct control and, therefore, more reliance on in such cases a matter of constructive reform— indirect controls of which a flexible interest policy more particularly, but not exclusively, in connecmay be an indispensable element. tion with the budget. The opinion would seem to be gaining ground The experience with regard to interest rates has that the application of flexible interest rates has been very different in those countries in which the an important role to play as part of a smoothly- rise in prices has not gone much beyond the genworking monetary system and that urgent consider- eral increase in world market prices as quoted, say, ation should be given to the requirements of a in dollars and where there has consequently been rational interest policy—a subject on which only no real loss of confidence in the national currency. a few observations can be made here with reference In Switzerland, for instance, relatively moderate to particular problems and countries. changes in long-term interest rates proved sufficient In the recovery of France and Italy an increase to maintain equilibrium; the experience of the Britin interest rates, together with quantitative credit ish market for government securities, which was restrictions, has proved of great use in the struggle along the same lines, has just been referred to; to arrest inflation and restore monetary confidence. and Belgium has also found that relatively moderate In both these countries the really effective interest changes are singularly effective. It must not be forrates have been very high—reaching 7 to 8 per cent gotten that an increase by one-half per cent in or more (especially in Italy) for advances and a the rate level (say, from 3 to 3l/ per cent) will 2 level above 6 per cent for long-term borrowing. bring down the quotation for a 3 per cent bond As long as inflation is still rampant, high rates can from par (i.e. 100) to a price of 86. If the holders 1004 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE BANK FOR INTERNATIONAL SETTLEMENTS of the bonds think that before long (e.g. when July-September quarter of 1948; 78.4 million dolsellers' markets and the boom are over) the inter- lars were carried forward to be utilised under the est level will return to 3 per cent, they are likely Agreement for 1949-50; and 45.7 million dollars to stop selling, since they will need to be sure of were cancelled (leaving 1.8 million still outstanding very good returns elsewhere before they will take at the end of March 1950). capital losses of 12 to 14 per cent on their securities. The Agreement for 1948-49 expired at the end In official interest policy it used to be a rule that of June 1949 and there was an interregnum until the discount rate of a central bank should be in- the signing of the new Agreement early in Sepcreased by one per cent at a time (in order to make tember 1949. By a decision of the Council of OEEC an impression on the markets) but lowered only the provisions of the Agreement of 1948-49 were one-half per cent at a time (in order not to give extended for July 1949 as regards compensations people too strong an inducement to withdraw funds only and compensations were carried out by the to foreign centres). But now that, in many mar- Agent on this basis; no drawing rights were availkets, official interest rates have been left unchanged able but the participating countries agreed to grant for years—sometimes even for over a decade—it temporary credit, where necessary, to cover the is probable that a very considerable psychological period. effect would be exerted by an increase of only The Agreement for Intra-European Payments one-half per cent. Such an increase would create and Compensations for 1949-50 was signed on a stir in all interested circles and give the impres- September 7, 1949, after several months of ardusion that the ordinary means of credit policy will ous negotiations, and remains in force until the again be used to uphold the integrity of the cur- completion of the operations for June 1950. Its rency—a move which would undoubtedly help to general lines closely followed those of the earlier strengthen monetary confidence at a time when Agreement, with two important exceptions: direct control measures are gradually disappearing. (a) twenty-five per cent of the drawing rights were made multilateral (the other seventy-five per INTBA-EUROPEAN PAYMENTS AND COMPENSATIONS cent being bilateral as before); and Before discussing the progress of the current (b) special arrangements were made to cover payments plan, it is desirable to bring up to date the estimated European surplus of Belgium. the story of intra-European payments as described in the eighteenth and nineteenth Annual Reports of The idea behind the establishment of multithis Bank. lateral drawing rights was that the country in The First Agreement for Multilateral Monetary whose favour they were established should be able Compensation of November 18, 1947 initiated the to use the purchasing power thus provided where monthly reporting of European central banks to the conditions (of price and quality, etc.) were most Bank for International Settlements, which has con- favourable. As in the previous year, the countries tinued without interruption from December 1947 concerned made detailed estimates of the balance until the present time. The results obtained from of payments in each bilateral relationship amongst this Agreement were somewhat limited; the total the participating countries. Bilateral drawing turnover during its ten months of operation was rights similar to those under the previous agreethe equivalent of 51 million dollars, 5 million being ment were established to cover three-quarters of first and 46 million second category. But, as fore- the estimated deficits, after taking into account seen in the eighteenth Annual Report, "the mech- any "agreed existing resources" held by the debtor; anism already functioning is capable of adaptation a corresponding amount of "conditional aid" in and growth to meet new developments." ECA dollars was to be allocated to the creditor The new developments began with the Agree- when the drawing rights were utilised. ment for Intra-European Payments and Compen- For each debtor country multilateral drawing sations for 1948-49, which was signed on October rights were then established, equal to one-third of 16, 1948 and is described in detail in the nineteenth the total bilateral drawing rights established in its Annual Report. favour according to Annex C of the Agreement; The definitive total of drawing rights established the "conditional aid" was to follow the multilateral for 1948-49 was 8055 million dollars but only drawing rights and be firmly alloted to the country 677.0 million were utilised in the nine months, on which the drawing rights were exercised. (The leaving "unused drawing rights" of 128.5 million: proportion of bilateral to multilateral drawing of this total, 2.5 million dollars were to be utilised rights was subsequently changed in a number of under Supplementary Protocol No. 2 of March 31, cases as new bilateral drawing rights were estab- 1949 to repurchase "off-shore" dollars of the lished or old "unused" bilateral rights from 1948-49 AUGUST 1950 1005 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE BANK FOR INTERNATIONAL SETTLEMENTS were brought forward; it was also modified on (f) elaborate provision was made for the revision account of the special arrangements for Belgium.) of bilateral drawing rights, circumstances justifying The Agent was authorized to utilise multilateral revision being set out in detail in Annex D of the drawing rights automatically to cover current Agreement. deficits up to an amount equal to one-third of (g) Unused bilateral drawing rights were to be the bilateral drawing right originally established put into a "pool" at the disposition of OEEC on the in that relationship. Further, multilateral draw- termination of the Agreement while unused multiing rights might be used by the Agent at the re- lateral drawing rights were to be cancelled (the quest of the debtor to cover a current monthly Organisation making recommendations to ECA as deficit: to the disposal of the corresponding conditional aid). (a) in relation to a country which had established a bilateral drawing right in its favour (when Two new factors of great importance had their this drawing right plus one-third had been fully influence on the working of the Agreement for utilised), and 1949-50 almost as soon as it was signed: the liberal- (b) in relation to a country which had not isation of intra-European trade under the auspices established a bilateral drawing right in favour of of OEEC and the currency devaluations which took the particular debtor (so long as agreed existing place in September 1949. Profound changes ensued resources had first been used up). in the volume and direction of intra-European surpluses and deficits of trade and vitiated the Characteristic points of the Agreement for estimates made only a few weeks previously. 1949-50 which show some difference from the It is generally not possible to disentangle the earlier scheme may be summarised as follows: effects of these two important factors, but in a few (a) Portugal took part in the drawing-right instances the causal connection seems fairly evident: system for 1949-50 so that, amongst the OEEC (a) the heavy deficits before the devaluation of countries, only Switzerland did not join in this sterling and the subsequent recovery of the United part of the Agreement. Kingdom and (b) the large imports made by West- (b) The Agreement was made retroactive from ern Germany at the same time as the measures of July 1, 1949 (so that the July and August drawing trade liberalisation came into force. In general, the rights were given together during the first oper- effects of liberalisation of imports in most countries ations). were felt only gradually (a number of restrictions (c) Provisions regarding the utilisation of bi- being maintained), while the devaluations aplateral drawing rights "additional" to those neces- peared, in subsequent months, to induce a less sary to cover the monthly deficit were tightened up unbalanced position in current payments. as compared with the earlier scheme, so that It may be mentioned in passing that, technically, amounts could be obtained only for specific pur- the Agreement of 1949-50 proved to be far more poses, viz. to avoid a settlement in gold or dollars complicated than the previous payments plan. The or to repurchase gold or dollars paid and, in ex- provisions for the use of multilateral drawing rights ceptional cases and for limited amounts during the and drawings on the Belgian loans were new and early months of the scheme, to establish an ade- the insistence on the "ceiling" of June 30, 1949 quate working balance. The tightening of the for all balances led to troublesome calculations. provisions was intended to prevent an unduly Further, the delay in signing the Agreement meant rapid utilisation of bilateral drawing rights with that the first operations had to cover two months, the object of obtaining multilateral drawing rights July and August 1949, and the devaluations of before they would otherwise have come into play. September produced problems of calculation which (d) Closely connected with (c) above was the had not been clearly provided for in the Agreement insistence on the importance of the "ceiling" for and Directives. On this latter question it was necesthe balances and debts outstanding on June 30, 1949. sary to have a special decision of the Council of Drawing rights could be granted only to cover the OEEC which required renewed calculations for cumulative deficits incurred and should not, there- September (treating the month as two separate fore, have the effect of increasing a balance or periods for drawing rights) and subsequent adjustdecreasing a debt beyond the amount in existence ments to the operations for that month (carried when the payments plan came into force. through with the operations for December). (e) At least two comprehensive reviews of the The devaluations of September 1949 reduced working of the system were provided for during the the need for drawing rights (as denominated in period of the Agreement, and dollars) in two ways. In the first place, the esti- 1006 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE BANK FOR INTERNATIONAL SETTLEMENTS mates of the bilateral positions made before the category" compensations brought about the auto- Agreement was signed were generally in national matic offsetting of certain debts and credits insiple currencies, although the dollar equivalent figured Europe while the "second-category" permitted some in the table in Annex C of the Agreement as the administrative transferability of currencies amongst amount of drawing rights established. Drawing the participants. rights are denominated in dollars until they are The disadvantages of the payments plans have made available, when the equivalent in the national often been described and only brief mention need currency of the creditor country is actually drawn be made here: and credited to the debtor country. It follows that, (a) They were too bilateral (and this applies as the remaining drawing rights, being denomialso to the 1949-50 scheme in spite of some attempt nated in dollars, underwent no change, the unused at flexibility); this criticism must, indeed, hold amounts, when expressed in the national currencies, for all such plans on a gross basis. were automatically increased. Secondly, the amount (b) They were based on estimates of payments of drawing rights necessary was reduced by the deficits and surpluses (made before each plan came effect which the devaluations had upon the flow into operation) which were bound to be subject to of trade and payments in Europe, there being, considerable error. as already mentioned, signs of a better balance in (c) They gave no possibility of strengthening European trade from October 1949 onwards. the reserve positions of the central banks, in many The payments plans were on a "gross" basis, and cases depleted to a dangerous extent in relation to it is appropriate to note the decline in the gross the trade to be financed. amount of drawing rights from 677 million dollars (d) As a country had no incentive to economise (granted and received) in the nine months to drawing rights to increase its resources, the in- June 1949 to 518 million dollars (granted and recentives were in the wrong direction. A country ceived), in the nine months to March 1950. But of receiving a drawing right stood to lose if it were special significance is the decline in the net amount not used up and, thus, the incentive was to run a of drawing rights by a round 200 million dollars: deficit. Similarly, the country granting the drawwhereas certain countries such as Austria, Greece ing right stood to lose the conditional dollar aid if and the Netherlands showed no very great change, the drawing right were not fully utilised (even France was practically all square on 1949-50 after though, circumstances having changed or the estihaving been a net recipient of 280 million dollars mates having proved inaccurate, the drawing right in 1948-49; most of the corresponding decline in was no longer necessary). net drawing rights granted appears in the figures for the United Kingdom and Belgium. Although it is easy to exaggerate the importance Taking the eighteen months as a whole it still of the wrong incentives in the payments plans (for remains true that France was (as a country but other incentives, outside the plans, were far more not per head of the population) by far the greatest important), yet there is no doubt that the payments net recipient of drawing rights, followed by Greece, schemes were too bilateral in nature, and experithe Netherlands, Austria and Norway. And, on ence has proved that estimates of the balances of the other side of the account, Belgium and the payments in individual relationships, made a year United Kingdom granted by far the largest net ahead, are often misleading. Nevertheless, in spite amounts. of imperfections, the drawing-right system was of There was much discussion in Paris, and else- real assistance at the time of most need and not where, as to the advantages and the disadvantages only helped to prevent a breakdown but ensured of the European payments schemes. The advan- a continuing and growing flow of intra-European tages are fairly well known. Within the limits trade. The scheme for 1948-49 was in the nature of ERP aid, and with no extra cost in dollars, it of an emergency measure, while that for 1949-50 was possible to deal with the western-hemisphere was negotiated under the shadow of the coming and intra-European payments deficits in one com- devaluations and bore all the marks of difficult bined ERP operation and thus to cover a very compromise. substantial part of each individual country's "over- After the devalutions of September 1949 had all" deficit. And, even though the drawing rights cleared the air and it was found that a better balwere bilateral, the plan permitted the OEEC coun- ance appeared to have been attained in European tries to come out with a debit or a credit balance in trade (through some reduction of the extreme their current payments amongst themselves, rather debtor and creditor positions), it became possible than being forced into direct bilateral balance in to consider a new plan which would be without each individual relationship. Further, the "first- the vices of the earlier ones. Discussions took AUGUST 1950 1007 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE BANK FOR INTERNATIONAL SETTLEMENTS place in the OEEC in Paris and the EGA in Paris the banking functions. The experience which the and Washington; these ideas were reflected in Mr. Bank has gained in this field derives from its Hoffman's Paris speech of October 31, 1949, when having acted as Agent under six agreements (inhe said, inter alia: cluding the three separate Belgium loan agreements). In the twenty-eight months to the end "Even when effective means are found to coof March 1950 a turnover equivalent to 1,432 milordinate financial policies and to promote needed lion dollars had passed through the Basle mechanexchange rate changes, there are still bound to be ism (in the form of compensations, drawing rights temporary disturbances in the flow of trade and and loans), while a total of 1,172 million dollars payments between countries. Their whole impact of conditional aid had been firmly allotted by the should not be allowed to fall upon the gold and United States Economic Cooperation Administradollar reserves of the individual countries. I betion to the participating countries at the request of lieve, therefore, that an . .. essential of any plan the Agent. you devise must be a means to cushion the effect In conclusion, it seems appropriate to stress the of these inevitable temporary disturbances. . . . fact that regional agreements such as the suggested "By a program, I mean a realistic plan to meet the European Payments Union can only be useful if fundamental requirements I have described. Perthey constitute definite steps towards convertibility haps you will accomplish this through adaptation of currencies on a world-wide basis; steps such as of existing institutions. Perhaps you will find that the loosening of exchange and other restrictions, the new central institutions are needed." liberalisation and multilateralisation of payments, This speech was followed by a resolution of the with the gradual giving-up of bilateral arrange- Council of OEEC on November 2, 1949, regarding ments and the strengthening of central-bank refurther measures of cooperation. In the preamble serves, all tend in this direction. the Council CONCLUSION "recognises that it may be desirable to provide for The year 1949 presents a curiously woven web a closer monetary and economic association on a of fears, troubles and solid achievements. The regional basis. . . ." fears have not been groundless: apart from the and, in the text of the resolution, the Council de- political anxiety, whose influence on business could cided, as regards intra-European payments, easily be overrated, there have been at least three very difficult adjustments which have had to be "to widen the area of transferability of currencies faced: a 30 per cent fall in the prices of primary among the member countries by suitable measures products on world markets, a business recession in the next intra-European payments scheme and in the United States which brought the index for by such additional arrangements and central instiindustrial production down by 17 per cent between tutions as may be appropriate to this end." November 1948 and July 1949, and devaluations The current payments plan for 1949-50 will ter- of currencies in countries responsible for two-thirds minate after the operations in respect of the month of world trade. Each of these adjustments might of June 1950 and a further scheme must be pro- have caused a host of troubles; but by the end of vided to carry on from that date. the year any nervousness had been overcome and Progress on the elaboration of a European Pay- had given place to a feeling that one more stage ments Union has been fully reported in the world had been passed in the task of reconstruction. It press and it is unnecessary here to follow the vicissi- seems, indeed, a very real achievement that these tudes of the negotiations over the past six months; three hurdles were taken with so little disturbance the committees of OEEC, with the close coopera- to the more fundamental line of improvement. tion of ECA, have examined in detail the various Unruffled by these and other upsets, production in suggestions put forward and, by the end of May, Europe continued to advance at the high rate of their views had arrived at a point of crystallisation over 6 per cent per annum and agricultural output when progress could be reported by the Payments regained its prewar level; budget deficits had no Committee to the Council of Ministers and by longer to be met by inflationary financing and the OEEC to the public. deficits in the balances of payments were com- Whatever may be the final shape of EPU it pressed; with the exception of two or three counappears necessary for it to be built upon the exist- tries in special circumstances, employment reing mechanism in Europe and, at the request of mained at high levels. OEEC, the Bank for International Settlements has With all this went a steady liberation from the signified that it is agreeable in principle to perform shackles of wartime controls which found its ex- 1008 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE BANK FOR INTERNATIONAL SETTLEMENTS pression in courageous decision by the OEEC Coun- aid. In these respects, progress has been achieved cil in Paris to liberalise trade as part of the Euro- but there are still economies with difficult adjustpean Recovery Program. The same spirit was at ments to make. And, when it comes to determinwork in each particular country, irrespective of the ing the possible volume of investments, it must political regime in power, rationing being lifted, not be taken for granted that a budget surplus more and more prices being freed from control, achieved by heavy taxation will always produce foreign travel being facilitated and greater possi- an addition to the flow of savings; for there is bilities granted for the transfer of money, a num- clearly the risk of a reduction in private savings— ber of currencies becoming practically convertible and then the ultimate effect may be a deadening under conditions which permitted a certain increase of initiative and enterprise. of monetary reserves—in short, restrictions were Were it possible to impose a full measure of eased in almost every field. Increased supplies control, including administrative direction of labour, from domestic production and imports of foreign a system might be constructed which would be goods have provided the basis for these measures self-consistent and could thus be made to work of liberation, with a psychological background in without internal contradictions. But the kind of a revolt by the peoples themselves against con- piecemeal intervention which has been in vogue trols and rationing. It seems certain that, barring in so many countries since the war has failed to any grave calamity, there will be no turning back afford any general guidance and it seems a sorry to the system of controls, now disappearing from misnomer to refer to it as "planning." land to land. The disappearance of physical controls in no way This attitude of the people, which springs from implies that the authorities should remain passive ten years' experience of government supervision, in the face of all the problems which wait for soluhas some important consequences. In the first tion. There are still important means of action place, it is no longer possible to contemplate solu- available to them: it has become increasingly clear tions to current problems which would involve an that a proper distribution of resources between intensification of the system of physical controls. home and foreign markets can be carried out While the war lasted, no country could avoid doses through the working of the monetary mechanism of inflation to mobilise the resources required in and that a free and trusted currency will lead to an a national emergency, and it was then not only increase of genuine savings, furnishing the funds natural but essential that physical controls should for further investments. Once money has been be imposed in order to make the redundant supply made sufficiently scarce in relation to available of money as innocuous as possible. But it is supplies, a multitude of troubles and problems characteristic of a wartime economy that it eats vanish almost of their own accord; the more freely into the accumulated assets of the past and thus money can be used, the more readily will it be represents the reverse of economic progress. It kept. There is in our generation a great and would be an illusion to think that similar methods understandable striving for security; let it be recould usefully be employed in peacetime; attempts membered that monetary security is a most valuto replace an insufficient flow of genuine savings able kind of security, benefiting all members of by some process of artificial credit expansion, or society and very highly appreciated by those who eternally to keep down rates of interest by a sys- have once lost it. It would be a great misfortune tematic open market policy, will only produce a if after all the difficulties overcome in recent years state of excessive liquidity in which the artificial —often at the cost of considerable sacrifices—-there addition to domestic demand will tend to increase should be a failure to take the further steps necesimports and impair the flow of exports. The sary to consolidate the progress already made and result will be a persistent deficit in the balance of to prepare the way for new advances. In this repayments, which has to be met by real resources— spect, the year 1950, the mid-term of Marshall aid, through assistance from abroad or as a charge on is of outstanding importance, the wartime shortthe country's own reserves. The great drawback ages having been overcome and exchange rates involved by such practices is that no natural bal- having been more generally adjusted to what may ance will be reached, so that one critical situation become their permanent levels. after another will arise. It may be possible by a Fortunately, there is now a much greater undersuccession of expedients to put off the attack on the standing of the inescapable connection between inreal problems for a time; but these problems will ternal financial policies and the outcome of balremain, and one day a halt will have to be called ances of payments, and also of the fact that exto the continuance of excessive investments, the change and trade restrictions may well curtail imcreation of artificial income and reliance on foreign ports and yet fail to improve the foreign position AUGUST 1950 1009 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE BANK FOR INTERNATIONAL SETTLEMENTS (since the purchasing power which they confine to being possible for relatively small firms to fill a the home market absorbs goods otherwise avail- useful place side by side with the large concerns. able for export) and that in any case they tend to With the disappearance of sellers' markets, each repel any voluntary influx of funds. There is manufacturer must be more than ever concerned certainly a growing lack of belief that physical to produce what the buyer, now free to choose, controls can master tire problems either of domestic actually wants—and this involves problems which trade or of the balance of payments, while it is can hardly be solved without constant attention to the peculiar quality of freely functioning markets the shifting trends of free markets. Moreover, it that they naturally tend to produce equilibrium is obvious that the best protection for the consumer and may be found to do so at less cost to the indi- against too heavy charges is greater freedom for vidual consumer and to society—provided, of imports, it being therefore necessary to synchronise course, that the more basic problems of economic the abolition of price control with liberation of balance have not been left in abeyance. foreign trade. When it is asked what will happen at the end (iv) Much valuable experience has been gained of the Marshall Plan the immediate answer is as to the methods of affording greater latitude for clearly that much depends on what is done in the foreign payments: it has proved possible and useful remaining period of Marshall aid. Here it is only to proceed step by step, beginning with a greater possible to point to a few of the main tasks: freedom of movement for bank notes and pro- (i) It was heavy government expenditure that gressing until free exchange markets have been provoked the war and postwar inflations and, re-established. though much has been done towards discarding (v) In the economic field there are several probinflationary methods of financing, the present level lems of a more international character which go of public expenditure in many countries is still beyond the possibilities of action by individual very high in relation to the national income, thus countries. Some of these are being considered by placing a most heavy burden on economic enterthe OEEC organisation in Paris and the United prise and drying up the flow of personal savings. Nations Economic Commission in Geneva; others There are deficits to be covered in railway adminisare of even wider scope for a Europe vitally detrations, heavy charges in various branches of the pendent on obtaining foodstuffs and raw materials central and local governments, and investment in trade with overseas countries and an additional programmes essentially dependent on foreign aid. supply of dollars through indirect trade. In order To overhaul the whole apparatus of public expendithat competitive sellers from European as well as ture and revenue is a task that may have to be other countries may give of their best, an expandapproached in different ways in different countries ing world market is required, and it is difficult to but can be neglected in none. see how such a result can be attained without an (ii) Few are the centres in which the money increased outlet in the United States for more and capital markets are as yet in regular working manufactured goods. order. There is a general move towards flexibility (vi) Another problem in the international field of interest rates; it has been encouraging to find concerns the settlement of liabilities affecting the how often relatively small changes in interest rates balances of payments. After the first world war, have been sufficient to exert a considerable influmany illusions were entertained as to the amounts ence in the market, proving themselves very helpthat could be transferred between different counful towards a return to equilibrium. But a capital tries and continents, the neglect of economic realmarket must be able to count on a steady supply ities being one of the factors contributing to the of fresh savings. In this field, too, it is necessary severity of the ensuing depression. It is officially to examine what are the main objectives in view recognised that certain similar questions now beand to establish an order of priority; among the fore us need further study and it can only be hoped most essential immediate tasks is that of putting that this time they will be arranged in a way that the monetary machinery itself into working order, does not unsettle the world economy. which also requires a reconstitution of monetary reserves. Europe has made considerable progress towards (iii) In the industrial sphere attention must not equilibrium in its balance of payments, the overbe focused exclusively on the volume of invest- all deficit on current account being reduced from ments, forgetting the fact that efficiency is very 7.4 billion dollars in 1947 to 2.9 billion in 1949. largely the result of employing appropriate methods It is true that there is still a considerable deficit in at the different stages of the production process, it the direct balance with the United States, recent 1010 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE BANK FOR INTERNATIONAL SETTLEMENTS progress being rather in relation to Latin America ences, progress must be made along the road to and southeastern Asia. But Europe has a vital multilateralism and convertibility. It was generally interest in regaining its old markets and resuming recognised at the end of the second world war that the traditional pattern of trade which, built up in the restoration of convertibility should be regarded the course of a hundred years, may be taken to as one of the more immediate aims of postwar reflect the deep-seated needs of many economies. policy. It may be that, in influential circles, there Such a return to tradition, however, requires the was too great a tendency to force the pace in the proviso that sales should be made increasingly in first few years, and that the setbacks which were free markets, with settlements in internationally suffered produced a rather hesitant state of mind. recognised means of payment. But, in view of the importance of unhampered and all-round trade for the nations of Europe, convertibility must be regarded not as a distant goal To have to adapt the currents of commerce to to be reached within a decade or two but as a compartments coinciding with particular currency primary objective to be attained within the few areas or established by bilateral arrangements, or remaining years of Marshall aid, under conditions to grant credits and loans with the proceeds tied which, though different from those of twenty years to purchases in specified countries, can only lead ago, may hold out the hope of enduring settleto a distortion of foreign trade and payments; and, ments in an atmosphere of unquestioned monetary in order to get away from such pernicious influ- stability. CURRENT EVENTS AND ANNOUNCEMENTS Appointment of Mr. Powell to the Board of Governors tor of its Monthly Business Review and served Mr. Oliver S. Powell, First Vice President of as such until July 1936 when he was appointed a the Federal Reserve Bank of Minneapolis, was Vice President of the Bank. In November 1936 nominated from the Ninth Federal Reserve District he was selected as the First Vice President and has on July 12 by President Truman to be a member of served in that capacity since that time. the Board of Governors of the Federal Reserve Sys- Mr. Powell has been active for many years in tem, to fill the unexpired portion of the term endbanking and civic affairs. He has headed various ing January 31, 1952, left vacant by the death of Reserve System committees on operating and re- Governor Lawrence Clayton. The appointment lated problems. In addition to developing two was confirmed by the Senate on August 9, 1950. motion pictures on the Reserve System and a book, Mr. Powell was born in White Rock, South "Your Money and the Federal Reserve System," he Dakota, September 17, 1896. He graduated from has conducted classes in central banking for inthe University of Minnesota in 1917 where he structors in money and banking and is the author specialized in banking, accounting, and foreign of a booklet "Questions and Answers on Gold." languages and received honors in economics. He He was the first educational director of the Minjoined the foreign service of the National City neapolis Chapter of the American Institute of Bank- Bank of New York and was assigned to the Petroing and subsequently its President. He has been a grad Branch of that Bank for six months in 1917 lecturer at the Graduate School of Banking, under and 1918 when the outbreak of the Bolshevik Revothe auspices of the American Bankers Association, lution occurred. Mr. Powell escaped through Siat Rutgers University from 1939 to the present time beria to return to the United States. After service in the United States Navy from and is well known to the graduates of that school August 1918 until August 1920 as a Supply Officer in banks throughout the country. He has been a on troop transports and destroyers, he joined the lecturer for the past five years at the Central States Federal Reserve Bank of Minneapolis in the Busi- School of Banking, Madison, Wisconsin, and preness Research Division. In June 1927 he became viously a lecturer in evening classes at the Univerhead of the Bank's Research Department and Edi- sity of Minnesota. AUGUST 1950 1011 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CURRENT EVENTS AND ANNOUNCEMENTS Mr. Powell was a special consultant on invest- Sharpies had served as a Class C director since ments of social insurance reserves for the Commit- June 9, 1949. tee on Economic Security in 1934 and a special con- Appointment of Branch Director sultant in the development of the statistical office On August 14, 1950, the Board of Governors of the Federal Deposit Insurance Corporation in announced the appointment of Mr. John E. Corette, 1934 and 1935. In addition, he has been active Jr., Vice President and Assistant General Manager, in the YMCA, Boy Scouts of America, Minne- Montana Power Company, Butte, Montana, as a apolis Chamber of Commerce, and the Northwest director of the Helena Branch of the Federal Re- Shippers Advisory Board. He is an honorary memserve Bank of Minneapolis for the unexpired portion ber of Beta Gamma Sigma and Delta Sigma Pi. of the term ending December 31, 1950. Mr. Corette He is married and has three children, all married, and three grandchildren. succeeds Mr. James A. McCain, President, Montana State University, Missoula, Montana, who resigned. Publication of the Annual Report of the Board of Governors Admissions of State Banks to Membership in the The Thirty-sixth Annual Report of the Board Federal Reserve System of Governors of the Federal Reserve System, cover- The following State banks were admitted to ing operations for the calendar year 1949, is available membership in the Federal Reserve System during for distribution. Copies may be obtained upon the period June 16, 1950 to July 15, 1950: request from the Board's Division of Administra- Indiana tive Services, Washington 25, D. C. Whiting—State Bank of Whiting Resignation of Class C Director Oregon On July 19, 1950, the Board of Governors accepted the resignation of Mr. Philip T. Sharpies, Cave Junction—Bank of Illinois Valley, Cave Chairman of Board, The Sharpies Corporation, Junction, Oregon Philadelphia, Pennsylvania, as a Class C director Texas of the Federal Reserve Bank of Philadelphia. Mr. Bellaire—First State Bank of Bellaire 1012 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NATIONAL SUMMARY OF BUSINESS CONDITIONS [Compiled July 24 and released for publication July 25] Industrial production and construction activity and activity in machinery industries continued the increased further in June to new peacetime peaks. marked rise which began in early spring. Steel Following the outbreak of hostilities in Korea near production was maintained in June at the capacity the end of the month, buying showed a marked level reached in April. Refinery output of nonupsurge and commodity prices generally rose con- ferrous metals expanded considerably further, but siderably in both wholesale and retail markets. supplies available, after increased takings for Gov- Common stock prices declined sharply for a time. ernment stockpiles, continued substantially below Prices of United States Government securities gen- industry demands. Mine production of copper and erally showed little change. Bank credit continued iron ore also expanded. to expand. On July 19 a large-scale Federal program Output of nondurable goods increased somewhat was proposed for expanding defense production and further in June, reflecting mainly continued gains curbing inflationary developments. in rayon and woolen textiles, paper, petroleum, rubber, and chemical products. Tire production INDUSTRIAL PRODUCTION was at a new record, and a substantial expansion The Board's production index rose another 4 in output of synthetic rubber was initiated. Activity at cotton mills declined somewhat. points in June to 199. Although output of steel and some other basic materials had been at or close to capacity levels in May, continued strong demands CONSTRUCTION resulted in further increases in production of most Value of construction contracts awarded in June major groups of manufactures and minerals in June. was maintained at the spring peak level reflecting In early July output declined temporarily owing to continued expansion in awards for public work holiday and vacation influences. which offset further small declines in private Production of durable goods increased substan- awards. The number of housing units started in tially further in June, mainly because of gains in June was maintained at the record May level and the automobile and machinery industries. Auto- for the first half of the year totaled 687,000 units, mobile assembly, which had been at a new record as compared with 449,000 units started during the rate in May, increased 23 per cent further in June, first half of 1949. WHOLESALE COMMODITY PRICES INDUSTRIAL PRODUCTION P2E6R 0CENT PEF 240 240 MANUFACTURES / A / S 220 V \V/\ \ \ J 220 \ TOTAL \ 1 200 „ \ / 1 180 i V c\AUSRLfs _ 180 160 160 r NERALS VL 140 120 i 120 100 100 80 80 1946 1948 1950 1946 1948 1950 Federal Reserve indexes. Monthly figures, latest shown are Bureau of Labor Statistics' indexes. Weekly figures, latest for June. shown are for week ending Aug. 1. AUGUST 1950 1013 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NATIONAL SUMMARY OF BUSINESS CONDITIONS EMPLOYMENT ously been rising following the recovery in production last summer. Employment in nonagricultural establishments rose by about 300 thousand persons in June, after COMMODITY PRICES allowance for seasonal changes. About one-half of Wholesale prices have generally risen considerably this increase occurred in industries producing dur- during the past 4 weeks, following earlier marked able manufactures; there were also gains in em- advances in April and May. The sharpest increases ployment in construction and transportation ac- have been in prices of farm and food products, tivities. particularly livestock, meats, imported foodstuffs, AGRICULTURE and cotton. Cotton prices on July 21 were about Total crop production this year, according to one-fourth above the Federal loan level. July 1 estimates, is expected to be 6 per cent less Prices of most industrial materials have advanced than last year when stocks increased and exports further in recent weeks, with especially marked were somewhat larger. Considerably smaller cotton increases in building materials, textiles, rubber, and and wheat crops are in prospect, but feed crops may tin. Prices of most metals have been maintained approach last year's large harvest. Marketings of at earlier advanced levels. meat animals recently have been in about the same Prices of some additional finished industrial prodseasonally low volume as a year ago, while produc- ucts have been advanced during this period, and tion of milk and eggs has been larger. with retail food prices increasing sharply, a substantial further rise is indicated in the level of con- DISTRIBUTION sumers' prices. Consumer buying increased considerably begin- BANK CREDIT ning in the latter part of June, influenced largely by Loans to real estate owners and consumers and international developments. Sales at department holdings of corporate and municipal securities stores in mid-July were 24 per cent larger than in showed further substantial increases at banks in the corresponding period a year ago; sales in the leading cities during June and the first half of July. preceding 2 weeks were 9 per cent larger. NewLoans to businesses also expanded. Holdings of automobile sales increased further and the volume United States Government securities fluctuated conwas limited only by the supply available. Anticipa- siderably but declined somewhat over the period. tory buying was also evident for various other dur- Treasury deposits at the Reserve Banks which able and semidurable goods and such foodstuffs as had been built up through tax payments in the coffee and sugar. Distributors' stocks of most latter part of June were drawn down during the consumer goods, except passenger cars, had previ- first three reporting weeks of July, supplying reserve funds to member banks. These funds were SECURITY MARKETS absorbed by reduction in Federal Reserve holdings of United States Government securities. The Sys- COMMON STOCK PR1CES i/V tem continued to sell Treasury bonds and also sold 140 V &^ r 140 bills and certificates, and these sales were offset in 100 AW 100 part by purchases of notes. • BONO YIELDS SECURITY MARKETS 4 3 ^ —. CORP B O o R o ME: — -^ —*-** I lat C te o r m p m ar o t n o f s to Ju c n k e p t r o ic e th s e f e m ll i d 1 d 3 le p o e f r J c u e l n y t , f r r e o fl m ec t t i h ng e T— . developments in Korea, but recovered part of the .s. GOVERNMENT"*^ decline during the third week. Demand for United States Government securities broadened through- 1 out this period. With virtually no change in prices O of long-term Treasury bonds, a moderate decline in 1943 i944 1945 1946 1947 1948 1949 1950 the prices of high-grade corporate obligations re- Common stock prices, Standard and Poor's Corporation; corporate bond yields, Moody's Investors Service; U. S. Gov- sulted in some widening of the narrow spread beernment bond yields, XL S. Treasury Department. Weekly figures, latest shown are for July 26. tween yields of these securities. 1014 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FINANCIAL, INDUSTRIAL, AND COMMERCIAL STATISTICS UNITED STATES PAGE Member bank reserves, Reserve Bank credit, and related items. . 1017-1018 Federal Reserve Bank discount rates; rates on industrial loans; rates on time deposits; reserve requirements; margin requirements. . 1018-1019 Federal Reserve Bank statistics 1020-1024 Deposits and reserves of member banks; bank suspensions. . 1024-1025 Money in circulation 1026-1027 Bank debits and deposit turnover; Postal Savings System. . 1027 All banks and the money supply 1028 All banks in the United States, by classes. . 1029-1031 All insured commercial banks in the United States, by classes. . 1032-1033 Weekly reporting member banks ... 1034-1037 Number of banking offices on Federal Reserve par list and not on par list 1038 Commercial papar, bankers' acceptances, and brokers' balances. . 1039 Money rates; bank rates on business loans; bond yields. . 1040 Security prices and new issues 1041-1042 Corporate sales, profits, and dividends. . 1043-1044 Treasury finance 1045-1047 Government corporations and credit agencies. . 1048 Business indexes. . .... 1049-1058 Department store statistics.. 1059-1062 Cost of living. . 1062 Wholesale prices 1063 Gross national product, national income, and personal income. . 1064-1065 Consumer credit statistics 1066-1068 Current statistics for Federal Reserve chart books. . 1069-1073 July crop report, by Federal Reserve districts 1073 : Earnings and expenses of Federal Reserve Banks for the six-month period ended June 30, 1950.. 1074 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. 1015 AUGUST 1950 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MEMBER BANK RESERVES, RESERVE BANK CREDIT, AND RELATED ITEMS ^ 1942 !943 1944 1945 1946 1947 1948 1949 1950 TOTAL RESERVE BANK HOLDINGS OF U S. GOVERNMENT SECURITIES 10 0 — 1942 1943 1944 1945 1946 1947 1948 1949 1950 Wednesday figures, latest shown are for July 26. See page 1017. 1016 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 balances Date or period c v o D a a a n u n d i c s n d - - e ts s To U t . a l S. s e G B cu o o r n v i d e ti r s e n s m c c B e a e r i t n t l e i l t f s s i , , - ot A h l e l r1 Total s G to o c ld k T s r t o c e u r i a u e n n u r n a r y g c t d - - s y - - M in c t u o io c l n a i n e r - - y T h c i u r o n a e r l g s a y d h s s - - F u T B p e s w r R r o e d y a e r i s n e e t a v d i r - h k t s e e a s s - - l b p m N e o r e o s m d n it e - - s - c O s F o e R e a t e r u r c h e a d v n - - e l - e t r s Total qu R ir e e - d2 c E e x ss - 2 and notes Wednesday figures: 1949—June 1. 15819,767 8,274 11,493 22020.145 24,342 4,595 27,515 1,321 622 911 63718,076 17,288 788 June 8. 15719,594 8,202 11,392 205 19,956 24,381 4,596 27,484 1,315 378 946 63918,170 17,249 921 June 15. 13919,461 8,051 11,410 311 19,91124,423 4,596 27,391 1,309 9 906 70818,606 17,387 1,219 June 22. 670 19,166 7,932 11,234 27720,11324,421 4,596 27,345 1,304 508 943 71518,314 17,348 966 June 29. 150 19,517 7,780 11,737 209 19,87524,466 4,597 27,426 1,324 497 959 71918,013 17,334 679 July 6. 19,343 7,780 11,563 321 19.779 24,471 4,597 27,659 1,306 262 898 74117,980 16,518 1,462 July 13. 14018,842 7,780 11,062 297 19,279 24,513 4,596 27,480 1,317 371 973 74117,506 16,493 1,013 July 20. 36018,474 7,780 10,694 262 19,096 24,518 4,595 27,366 1,310 449 930 740 17,415 16,522 893 July 27. 41718,490 7,780 10,710 169 19,075 24,520 4,594 27,333 1,307 447 877 740 17,486 16,586 900 Aug. 3. 29818,693 7,780 10,913 222 19,213 24,562 4,593 27,419 1,312 411 918 68917,619 16,490 1,129 Aug. 10. 13718,606 7,775 10,831 181 18,924 24,568 4,592 27,409 1,314 370 956 69117,347 16,513 834 Aug. 17. 240 18,226 7,775 10,451 228 18,694 24,608 4,592 27,383 1,313 444 970 68817,096 15,799 1,297 Aug. 24. 11517,803 7,775 10,028 163 18,08124,610 4,591 27,328 1,321 485 948 69116,509 15,596 913 Aug. 31. 53117,524 7,775 9,749 171 18,22524,607 4,593 27,389 1,310 610 914 690 16,512 15,337 1,175 Sept. 7. 11517,413 7,775 9,638 251 17.780 24,647 4,592 27,589 1,317 472 955 69115,995 15,064 931 Sept. 14. 12317,250 7,775 9,475 431 17,804 24,649 4,592 27,454 1,312 334 931 69116,322 15,207 1,115 Sept. 21. 14617,154 7,538 9,616 333 17,633 24,691 4,591 27,365 1,314 801 962 71315,760 15,244 516 Sept. 28. 30017,852 7,538 10,314 245 18,397 24,602 4,590 27,348 1,311 1,170 1,029 71516,016 15,139 877 Oct. 5. 11217,961 7,538 10,423 332 18,406 24,604 4,593 27,476 1,321 612 ,075 73416,384 15,242 1,142 Oct. 12. 10917,779 7,538 10,241 414 18,30124,604 4,592 27,546 1,296 554 ,247 73416,119 15,211 908 Oct. 19. 12217,666 7,538 10,128 369 18,15724,585 4,591 27,427 1,310 317 ,142 73216,405 15,330 1,075 Oct. 26. 13817,403 7,538 9,865 292 17,833 24,584 4,591 27,328 1,313 374 ,163 73216,098 15,314 784 Nov, 61117,533 7,536 9,997 272 18,416 24,583 4,591 27,382 1,318 545 ,219 690 16,437 15,319 1,118 Nov 31917,706 7,535 10,171 16018,18524,532 4,592 27,528 1,312 415 ,220 690 16,145 15,262 883 Nov, 12417,789 7,532 10,257 438 18,35124,530 4,592 27,397 1,323 408 ,224 69016,432 15,346 1,086 Nov, 13317,669 7,513 10,156 289 18,09124,530 4,596 27,508 1,315 410 ,306 69115,987 15,361 626 Nov, 32117,682 7,513 10,169 263 18,267 24,479 4,596 27,543 1,317 517 ,238 68916,038 15,367 671 Dec. 7. 40717,931 10,419 289 18,628 24,477 4,596 27,699 1,309 441 ,271 690 16,291 15,395 896 Dec. 14. 10718,169 10,657 455 24,476 4,596 27,701 1,314 393 ,273 690 16,433 15,561 872 Dec. 21. 12818,538 11,301 842 19,508 24,427 4,595 27,833 1,309 1,027 ,267 75616,337 15,523 814 Dec. 28. 18,789 11,558 19,379 24,427 4,598 27,765 1,314 987 ,281 75816,299 15,462 837 1950—Jan. 4. 18,829 7,212 11,617 547 19,471 24,427 4,597 27,551 1,319 547 ,304 71917,055 15,597 1,458 Jan. 11. 18,230 7,165 11,065 315 18,644 24,426 4,596 27,311 1,313 255 ,382 71916,686 15,593 1,093 Jan. 18. 17,872 7,134 10,738 414 18,383 24,426 4,596 27,121 1,315 381 ,380 71916,487 15,630 857 Jan. 25. 17,764 7,130 10,634 18,300 24,425 4,596 26,913 1,321 539 ,408 72116,419 15,617 802 Feb. 1. 45617,855 7,103 10,752 309 18,620 24,395 4,599 26,928 1,318 637 ,478 72116,532 15,534 998 Feb. 8. 22317,656 6,969 10,687 267 18.146 24,345 4,598 26,985 1,313 366 ,432 72716,265 15,456 809 Feb. 15. 26717,781 6,920 10,861 533 24,343 4,598 26,993 1,313 671 ,419 72816,400 15,383 1,017 Feb. 21. 9417,625 6,887 10,738 373 18,092 24,345 4,598 27,019 1,311 380 ,419 73116,176 15,428 748 Mar. 1. 31417,757 6,840 10,917 383 18,454 24,345 4,600 27,060 1,316 555 ,444 73616,288 15,347 941 Mar. 8. 8717,846 6,804 11,042 24,345 4,601 27,105 1,322 433 ,454 73916,258 15,261 997 M M M a a a r r r . . . 2 2 1 9 2 5 . . . 3 1 6 7 8 5 1 61 1 1 7 7 7 , , ,7 5 5 9 7 1 1 3 6 6 6 6 , , , 4 6 5 1 1 2 5 5 9 1 1 11 1 1 , , , 1 1 0 0 7 4 1 6 4 2 26 7 3 7 1 1 1 8 8 8 , , , 0 1 2 3 4 6 6 4 4 2 2 2 4 4 4 , , , 2 2 3 7 4 2 1 6 0 4 4 4 , , , 5 6 6 9 0 0 9 1 0 2 2 2 6 6 7 , , , 9 9 0 7 6 2 2 9 3 1 1 1 , , , 3 3 3 0 0 2 7 8 1 9 7 9 5 9 7 9 , , , 3 1 1 1 5 3 5 5 9 7 7 7 6 5 6 1 9 6 1 1 1 6 5 5 , , , 7 9 7 7 6 8 1 9 2 1 1 1 5 5 5 , , , 4 2 3 0 6 2 5 8 4 1, 6 5 3 4 1 6 5 4 6 Apr. 5. 16817,572 6,357 11,215 392 18,132 24,246 4,601 27,133 1,317 622 ,167 76915,971 15,209 762 Apr. 12. 160 17,597 6,327 11,270 311 24,247 4,600 27,072 1,313 587 ,177 76915,996 15,248 748 Apr. 19. 13717,410 6,220 11,190 381 17,928 24,247 4,600 26,992 1,319 647 ,261 77115,786 15,265 521 Apr. 26. 21817,640 6,204 11,436 282 18,14124,247 4,600 26,962 1,316 833 ,208 77215,898 15,243 655 May 3. 121 17,711 6,098 11,613 359 18,192 24,247 4,602 27,051 ,326 678 ,287 71315,986 15,224 762 May 10. 90 17,591 5,976 11,615 297 17,978 24,249 4,602 27,041 ,318 533 ,314 71715,907 15,147 760 May 17. 7917,401 5,911 11,490 521 18,00124,230 4,601 26,980 ,294 426 ,293 71616,123 15,275 848 May 24. 10617,290 5,854 11,436 288 17,68324,230 4,601 26,908 ,292 428 ,246 71815,922 15,305 617 May 31. 30617,389 5,802 11,587 239 17,93524,231 4,606 27,090 ,309 588 ,254 15,814 15,288 526 June 7. 9417,672 5,726 11,946 377 18,143 24,232 4,605 27,079 ,309 472 1,321 73316,067 15,350 717 June 14. 7917,693 5,681 12,012 498 18,270 24,232 4,604 26,993 ,304 319 1,447 73516,309 15,433 876 June 21. 7417,679 5,650 12,029 508 24,231 4,604 26,926 ,294 529 1,395 78416,169 15,522 647 June 28. 6918,217 5,644 12,573 281 18,567 24,230 4,608 27,026 ,306 866 1,441 77815,988 15,468 520 July 5. 8318,586 5,555 13,031 281 18,950 24,231 4,607 27,315 ,302 645 1,470 80216,254 15,469 785 July 12. 6518,294 5,411 12,883 399 18,7"5'7 24,207 4,606 27,169 ,309 383 1,457 80416,448 15,550 898 July 19. 19917,869 5,286 12,583 407 18,47524,207 4,606 27,029 ,310 525 1,462 80416,157 *>15,486 July 26. 350 17,964 4,997 12,967 322 18,636 24,157 4,605 26,915 1,315 504 1,439 80916,415 n5,568 P847 P Preliminary. 1 Includes industrial loans and acceptances purchased shown separately in subsequent tables. 2 Wednesday figures and end-of-month figures (shown on next page) 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. AUGUST 1950 1017 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MEMBER BANK RESERVES, RESERVE BANK CREDIT, AND RELATED ITEMS—Cofifmfiifdf [In millions of dollars] Reserve Bank credit outstanding Member bank reserve balances Date or period v co a D a a n u n d is c n d - - e ts s T U ot . a S l . s e G B cu o o r n v i d e ti s r e n s m c c B e e a r i t n t l e i l t f s s i , , - ot A h l e l r1 Total s G to o c ld k T s r o e c t u i r a u n n u e r n y g r c t a - - d y s - - M i c n t u o io l c n a n i e - r y - T h c i u r o n a e r l g s y a d h s s - - F u T B p e s r w r R o e d y a e r i s e n e t a v i d - r h k t s e a e s s - - l b p m N e o r e o s m d n it e - s - - c O s F o e e R a t e r u r c h e a d v n - - e l - e t r s Total qu R ir e e - d5 c E e x ss - 2 and notes End of period: 1929—June 29.. 1,037 216 71 145 147 1,400 4,037 2,019 4,459 204 36 28 374 2,356 2,333 23 1933—June 30.. 164 1,998 441 1,557 58 2,220 4,031 2,286 5,434 264 35 166 346 2,292 1,817 475 1939—Dec. 30.. 7 2,484 1,351 1,133 102 2,593 17,644 2,963 7,598 2,409 634 653 25111,653 6,444 5,209 1941—Dec. 31.. 3 2,254 467 787 104 2,361 22,737 3,247 11,160 2,215 867 1,360 29112,450 9,365 3,085 1945—June 30.. 46 21,792 1,11320,679 466 22,304 20,213 4,145 26,746 2,279 599 1,668 45014,92013,335 1,585 Dec. 31.. 249 24,262 94723,315 580 25,091 20,065 4,339 28,515 2,287 977 1,308 49515,915 14,457 1,458 1946—June 29.. 15723,783 75523,028 516 24,456 20,270 4,539 28,245 2,251 833 1,250 56116,123 15,011 1,112 Dec. 31.. 16323,350 75322,597 581 24,093 20,529 4,562 28,952 2,272 393 822 60716,139 15,577 562 1947—June 30.. 7700 21,872 72721,145 228 22,170 21,266 4,552 28,297 1,314 756 881 62916,11215,374 738 Dec. 31.. 85 22,,559 2,85319,706 536 23,181 22,754 4,562 28,868 1,336 870 961 56317,89916,400 1,499 1948—June 30.. 26521,366 6,20615,160 268 21,900 23,532 4,565 27,903 1,327 1,928 859 59217,389 16,647 742 Dec. 31.. 223 23,333 10,97712,356 542 24,097 24,244 4,589 28,224 1,325 1,123 1,189 590 20,479 19,277 1,202 1949—June 10319,343 7,780 11,563 250 19,696 24,466 4,597 27,493 1,307 438 941 71317,867 16,919 948 July 31618,529 7,780 10,749 393 19,238 24,520 4,593 27,394 298 514 1,018 69017,437 16,685 752 Aug 53117,524 7,775 9,749 171 18,225 24,608 4,593 27,393 308 610 914 69016,512 15,337 1,175 Sept 10918,010 7,53810,472 297 18,415 24,602 4,593 27,412 1,311 1,176 ,051 71315,94715,176 771 Oct 28317,316 7,536 9,780 261 17,860 24,584 4,592 27,407 1,307 595 ,187 69015,85015,261 589 Nov 32117,682 7,51310,169 263 18,267 24,479 4,596 27,543 1,317 517 ,238 689 16,038 15,367 671 Dec 7818,885 7,21811,667 536 19,499 24,427 4,598 27,600 1,312 821 ,517 70616,568 15,550 1,018 1950—Jan 14517,827 7,112 10,715 354 18,326 24,395 4,599 26,941 1,311 677 ,460 72016,211 15,513 698 Feb 13117,746 6,857 10,889 349 18,226 24,345 4,602 27,068 1,310 666 ,426 73015,973 15,390 583 Mar 22517,592 6,397 11,195 253 18,070 24,246 4,602 27,042 1,315 1,006 ,132 76615,657 15,150 507 Apr 11317,796 6,155 11,641 392 18,301 24,247 4,603 27,048 1,308 858 ,347 71215,878 15.202 676 May 30617,389 5,802 11,587 239 17,935 24,231 4,606 27,090 1,309 588 ,254 71815,81415,288 526 June. 4318,331 5,618 12,713 329 18,703 24,231 4,607 27,156 1,298 950 ,431 77115,93415,504 430 July 22017,969 13,081 27' 18,466P24.136P4.609?27,008 P1,306 566 ,443 75916,129 15,525 J>604 Averages of daily figures: 1949—June 19119,377 8,04611,331 328 19,896 24,404 4,596 27,432 1,311 421 984 68018,06817,310 758 July 20218,797 7,780 11,017 344 19,342 24,502 4,595 27,472 1,306 391 977 73617,55816,539 1,019 Aug 19018,147 7,777 10,370 245 18,583 24,588 4,592 27,397 1,312 521 970 690 16,873 15,918 955 Sept 16417,441 7,649 9,792 352 17,957 24,637 4,592 27,451 1,310 649 990 70316,083 15,161 922 Oct 136 17,643 7,538 10,105 361 18,139 24,596 4,592 27,456 1,305 555 1,171 72716,113 15,251 862 Nov 21517,664 7,528 10,136 34: 18,226 24,533 4,593 27,477 1,311 457 1,296 69116,119 15,308 811 Dec 18918,287 7,36010,927 536 19,012 24,451 4,596 27,734 1,307 687 1,315 72416,291 15,488 803 1950—Jan 10118,082 7,157 10,925 18,649 24,420 4,597 27,220 1,314 472 1,420 71916,52015,585 936 Feb 17817,705 6,948 10,757 42' 18,310 24,346 4,598 27,008 1,310 585 1,478 7285 16,14615,409 737 Mar 17017,682 6,640 11,042 389 18,242 24,311 4,600 27,043 1,307 638 1,331 752! 16,08115,298 783 Apr 14017,608 6,274 11,334 388 18,136 24,247 4,601 27,062 1,313 695 1,250 764I 15,89815,204 694 May 11617,486 5,937 11,549 403 18,005 24,236 4,602 27,022 1,302 563 1,299 7177 15,94115,237 704 June 8417,800 5,683 12,117 440 18,325 24,231 4,605 27,026 1,299 512 1.372 759>16,19415,428 766 July 18,129 5,297 12,832 434 18,703 24,192 4,606 27,117 1,305 549 1,481 796 16,253 For footnotes see preceding page. MAXIMUM RATES ON TIME DEPOSITS MARGIN REQUIREMENTS * [Per cent per annum] [Per cent of market value] Jan. 21, Feb. 1, Effec- Nov. 1, 1933-Feb. 1, 1935- Effective Prescribed in accordance with 1946- 1947- tive Jan. 31, 1935 Dec. 31, 1935 Jan. 1,1936 Securities Exchange Act of 1934 Jan. 31, Mar. 29, Mar. 30, 1947 1949 1949 Savings deposits Postal Savings deposits Regulation T: Other deposits payable: For extensions of credit by brokers In 6 months or more and dealers on listed securities..... 100 75 50 In 90 days to 6 months. . . For short sales 100 75 50 In less than 90 days Regulation U: For loans by banks on stocks 100 75 50 NOTE/—Maximum rates that may be paid by member banks as established by the Board of Governors under provisions of Regula- 1 Regulations T and U limit the amount of credit that may be extion Q. Under this Regulation the rate payable by a member bank tended on a security by prescribing a maximum loan value, which is a may not in any event exceed the maximum rate payable by State specified percentage of its market value at the time of the extension; the banks or trust companies on like deposits under the laws of the State "margin requirements" shown in this table are the difference between in which the member bank is located. Maximum rates that may be the market value (100%) and the maximum loan value. paid by insured nonmember banks as established by the F.D.I.C., Back figures.—See Banking and Monetary Statistics, Table 145, p. 504, effective Feb. 1, 1936, are the same as those in effect for member banks. and BULLETIN for March 1946, p. 295. 1018 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BANK DISCOUNT RATES [Per cent per annum] Discounts for and advances to member banks Advances to individuals, partnerships, or corporations other than member Advances secured by Government banks secured by direct obligations and discounts of and Other secured advances obligations of the U. S. Federal Reserve Bank advances secured by eligible paper [Sec. 10(b)] (last par. Sec. 13) (Sees. 13 and 13a)* Rate on In effect Previous Rate on In effect Previous Rate on In effect Previous July 31 beginning— rate July 31 beginning— rate July 31 beginning— rate Boston Aug. 13,1948 Aug. 13,1948 Jan. 14, 1948 New York.. . Aug. 13,1948 Aug. 13,1948 2 Oct.30, 1942 Philadelphia. , Aug. 23,1948 Aug. 23,1948 Aug.23, 1948 Cleveland Aug. 13,1948 Aug. 13,1948 Aug.13, 1948 2 Richmond Aug. 13,1948 Aug. 13,1948 2 Oct.28, 1942 4 Atlanta...... Aug. 13,1948 Aug. 13,1948 Jan. 24, 1948 2 Chicago. Aug. 13,1948 Aug. 13,1948 Aug.13, 1948 St. Louis Aug. 19,1948 Aug. 19,1948 Jan. 12, 1948 Minneapolis. . Aug. 13,1948 Aug. 13,1948 Aug.23, 1948 Kansas City. , Aug. 16,1948 Aug. 16,1948 Jan. 19, 1948 \* Dallas Aug. 13,1948 Aug. 13,1948 Feb. 14, 1948 2 San Francisco Aug. 13,1948 Aug. 13,1948 2 Oct.28, 1942 4 1 Rates shown also apply to advances secured by obligations of Federal intermediate credit banks maturing within 6 months. 2 Certain special rates to nonmember banks were in effect during the wartime period. 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 1.3a 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 EFFECTIVE MINIMUM BUYING MEMBER BANK RESERVE REQUIREMENTS RATES ON BANKERS' ACCEPTANCES [Per cent per annum] [Per cent of deposits] Maturity R Ju a l t y e o 3 n 1 In g i e n f n fe in ct g — be- Pre ra v t i e ous Net demand deposits x Time deposits 1 9 21 1 1 - - - 1 1 8 9 2 0 0 0 d d a d y a a s y y s s \y 2 * i l A A A u u u g g g . . . 1 1 1 3 3 3 , , , 1 1 1 9 9 9 4 4 4 8 8 8 Ef o fe f c t c i h v a e ng d e ate C r b e e c a s n i e n t t r y k r v s 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 m ba e ( n m a k l b l s e ) r 1 Date on which rate became effective at the Federal Reserve Bank of New York. The same rates generally apply to any purchases made 1917—June 21. . 13 10 7 by the other Federal Reserve Banks. 1936—Aug. 16.. 15 10} Back figures.—See Banking and Monetary Statistics, Table 117, pp. 1937—Mar. 1. , 22% 17 443-445. May 1. , 26 20 14 1938—Apr. 16. . 22 % 12 FEDERAL RESERVE BANK RATES ON INDUSTRIAL LOANS AND COMMITMENTS UNDER SECTION 13b 1941—Nov. 1. , 26 14 OF THE FEDERAL RESERVE ACT 1942—Aug. 20. , 24 Maturities not exceeding five years Sept. 14. , 22 Oct. 3. . 20 [In effect July 31. Per cent per annum] 1948—Feb. 27. , 22 To industrial or June 11. . 24 c b o u m si m ne e s r s c e ia s l To financing institutions S S e e p p t t . . 2 1 4 6 . .. . 16 Federal On discounts or 1949—May 1. . 15 27 Reserve purchases May 5. . 24 21 37 Bank lo O an n s ! co m m O e m n n t i s t- f o o P i b t n r i o l o s i w r g t n t i a i h t o t u i i e s n c - d h m po a R r in t e i - i o n n g c m om O en n m ts it- A J J A A A u u u u u u l n g y g g g e . . . . 3 1 1 1 0 1 1 1 8 6 . . . . . . . . . , . . 23 2 1 0 9 1 1 4 3 3 3 2 2 5 6 6 5 Aug. 25. . 22} 18 Boston Sept. 1. . 22 18 New York. Philadelphia... . In effect Aug. 1, 1950 22 18 12 Cleveland Richmond. Atlanta 1 Demand deposits subject to reserve requirements, which beginning Chicago Aug. 23, 1935, have been total demand deposits minus cash items St. Louis....... in process of collection and demand balances due from domestic banks Minneapolis.... (also minus war loan and series E bond accounts during the period Kansas City. . . . Apr. 13, 1943-June 30, 1947). Dallas 2 Requirement became effective at country banks. San Francisco... 3 Requirement became effective at central reserve and reserve city 1 Including loans made in participation with financing institutions. banks. 2 Rate charged borrower less commitment rate. 3 Rate charged borrower. 4 Rate charged borrower but not to exceed 1 per cent above the discount rate. 5 Charge of }4 Per cent is made on undisbursed portion of loan. Back figures.—See Banking and Monetary Statistics, Table 118, pp. 446-447. AUGUST 1950 1019 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

PRINCIPAL ASSETS AND LIABILITIES OF ALL FEDERAL RESERVE BANKS [In thousands of dollars] Wednesday figures End of month Item 1950 1950 1949 July 26 July19 July12 July5 June 28 June 21 June14 July June July Assets Gold certificates .... 99 ,430 498 431 99 430 498 9? 4S9 49Q 460 431 99 471 430 99 471 49Q 363 431 99 450 430 9? 719, Redemption fund for F. R. notes 522,533 522,345 526,532 522 530 521 650 520,648 523,141 522,532 522,648 572,418 Total gold certificate reserves.... 22,895,96322 950,77622 956,96022 981 95922 982,08122 992,07822 994,57022 885,96322 982,07823,284,846 Other cash 964 , S79 9 50,317 994 988 199 898 919 516 913 9QQ 1Q9,288 9S3 ,960 911 ,642 314,764 Discounts and advances: For member banks... 333,336 182,533 47,843 66 703 52,363 57,755 59,904 202,383 26,138 216,433 For nonmember banks, etc 17,000 17,000 17,000 17 000 17,000 17,000 19,400 17,000 17,000 100,300 Total discounts and advances ... 350,336 199,533 64,843 83,703 69,363 74,755 79,304 219,383 43,138 316,733 Industrial loans 2,676 2,679 2,671 2,679 2,667 2,627 2,676 2,394 2,693 530 U. S. Govt. securities: Bills 4 057 547 3 69Q 947 3 83? 57S 3 976 37S 3 836 875 3 989 875 4 100 4 145 947 3 856 375 3,774 495 Certificates: Special Other 2,778,550 2,778,550 2,831,050 2 846,550 5 357,250 4 897,150 4 844,^150 2,790,550 5,357,250 6,620 500 Notes 6,131,000 6 175 700 6 918 700 6 908 700 3 379 100 3 148 700 S 067.200 6, 145,600 3,490 700 353 600 Bonds 4,997,100 5,286,000 5,411,400 5,554,700 5,643,800 5 649,800 5,680,600 4,887,500 5,617,900 7,780 200 Total U. S. Govt. securities 17,964,197 17,869,497 18,293,725 18,586,325 18 217,02517 678,525 17,692,825 17,968,897 18,331,225 18,528 795 Other Reserve Bank credit outstanding. . . 318,903 403,588 396,120 277,655 277,825 505,367 494,834 275,009 325,570 391 550 Total Reserve Bank credit outstanding18,636 119 18 47S 9Q7 18 7S7,359 18 9S0 36? 18 566 880 18 961 9 7418,269,639 18,465,683 18,702,62619,237 608 Liabilities Federal Reserve notes. . 22,768,73022,868,40522,969,36323,047,96822,800,80322,706,04722,767,87022,841,19822,920,93323,305 260 Deposits: Member bank — reserve account 16,415,032 16,157,309 16,448,487 16,253,943 15,988,45116,169,122 16,309,026 16,129,223 15,934,079 17,436 630 U. S. Treasurer—general account 503,995 525,474 382,708 645,308 866,069 529,254 318,837 565,960 949,936 513 556 Foreign 1,174,069 1,201,647 1,179,926 1,179,966 1,140,308 1,123,786 1,072,730 1,168,614 1,158,461 429 892 Other 264,963 260,696 277,298 289,585 300,337 271,033 374,381 274,827 273,025 588 181 Total deposits 18 3S8 059 18 145 176 18 988 ,419 18 368 80? 18 905 165 18 093 m 18 074,974 18,138,624 18,315,501 18,928 259 Ratio of gold certificate reserves to deposit and E R. note liabilities combined (per cent)... 55.7 56.0 55.6 55.5 55.9 56.4 56.3 55.8 55.7 55.1 MATURITY DISTRIBUTION OF LOANS AND U. S. GOVERNMENT SECURITIES HELD BY FEDERAL RESERVE BANKS [In thousands of dollars] Total 1 W 5 i d th a i y n s 16 d a to y s 30 31 d a to y s 60 61 d a to y s 90 9 6 1 m da o y n s t h t s o 6 to m 1 o y n e t a h r s 1 2 y y e e a a r r s to2 5 y y e e ar ar s s to 5 O y v e e a r rs Discounts and advances: June 28 69,363 49,938 1,625 15,784 2,016 July 5 83,703 63,893 1,975 17,625 210 July 12 64,843 44,320 2,020 17,643 815 44 July 19 199,533 178,875 1,575 17,862 1,176 44 July 26. 350,336 328,451 16,875 3,071 1,906 33 Industrial loans: June 28 2,667 70 5 54 260 893 376 284 725 July 5 2,679 39 10 191 779 375 198 316 771 July 12. 2,671 44 11 188 776 372 196 313 771 July 19 2,679 46 5 245 721 400 184 307 771 July 26 2,676 42 5 235 721 403 184 320 766 U. S. Government securities: June 28 18,217,025 3,204,652 582,5951,339,3171,925,2111,481,5001,124,0502 697,400 2 318,100 3,544,200 July 5 18,586,325 742,743 607,3101,446,420 3,365,6021,124,050 2,617,2 909,5 318,100 3,455,100 July 12 18,293,725 801,386 604,0921,433,259 3,179,5381,108,550 2,627,200 2 909,800 2 318,100 3,311,800 July 19 , 17,869,497 880,360 713,8021,897,104 2,323,6811,056,050 2,609,200 2 895,800 2 307,100 3,186,400 July 26.... 17,964,197 941,837 813,9252,045,4112,442,0741,056,050 2,630,700 2 905,800 2 .230,900 2,897,500 1020 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENT OF CONDITION OF THE FEDERAL RESERVE BANKS, BY WEEKS [In thousands of dollars] Total Boston 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 - Atlanta Chicago L S o t u . is M ap in o n li e s - K C an it s y as Dallas F c S r is a a c n n o - Assets Gold certificates: June 28 22,460,431 907,314 6,930,3091,251,3461,726,6241,049,541 980,1484,416,556 640,268 453,048 819,533 626,5752,659,169 July 5 22,459,429 924,514 7,030,327 1,325,2711,647,5931,037,136 969,5114,394,058 632,402 433,413 836,987 586,6682,641,549 July 12 22,430,428 856,762 6,946,9641,256,5891,615,1011,033,111 990,1254,466,792 634,488 443,043 850,240 654,9762,682,237 July 19 22,428,431 907,756 6,849,7461,297,2581,654,1261,029,281 972,0964,464,604 665,429 438,357 847,438 632,5592,669,781 July 26 .. 22,373,430 884,839 6,935,4331,274,9011,663,2831,015,605 970,6874,431,648 649,380 422,869 848,728 628,6802,647,377 Redemption fund for F. R. notes: June 28 521,650 50,777 36,830 46,936 56,042 47,470 37,311 81,450 41,929 21,929 33,937 26,370 40,669 July 5 522,530 50,771 36,809 46,931 57,034 47,458 37,297 81,431 41,925 21,927 33,932 26,365 40,650 July 12 526,532 50,771 36,809 46,931 61,035 47,459 37,297 81,431 41,925 21,927 33,932 26,365 40,650 July 19 522,345 50,476 35,655 46,342 60,663 47,241 36,992 80,967 41,800 21,878 33,849 26,273 40,209 July 26...... 522,533 52,289 34,842 46,939 60,419 46,969 36,777 80,679 41,706 21,848 33,791 26,205 40,069 Total gold certificate reserves: June 28 22,982,081 958,091 6,967,1391,298,2821,782,6661,097,0111,017,4594,498,006 682,197 474,977 853,470 652,9452,699,838 July 5 22,981,959 975,285 7,067,1361,372,2021,704,6271,084,5941,006,8084,475,489 674,327 455,340 870,919 613,0332,682,199 July 12 22,956,960 907,533 6,983,7731,303,5201,676,1361,080,5701,027,4224,548,223 676,413 464,970 884,172 681,3412,722,887 July 19 22,950,776 958,232 6,885,4011,343,6001,714,7891,076,5221,009,0884,545,571 707,229 460,235 881,287 658,8322,709,990 July 26 22,895,963 937,128 6,970,2751,321,8401,723,7021,062,5741,007,4644,512,327 691,086 444,717 882,519 654,8852,687,446 Other cash: June 28 212,516 15,920 40,593 15,749 15,845 11,762 20,814 26,091 14,809 5,391 9,025 11,369 25,148 July 5 192,828 14,590 32,582 11,419 15,300 10,754 18,936 27,055 12,552 5,168 8,593 11,751 24,128 July 12 224,288 21,061 42,153 14,451 16,665 12,377 19,919 31,795 12,277 6,003 8,626 10,617 28,344 July 19... 250,317 23,626 48,562 15,774 20,925 14,169 20,436 35,353 12,138 6,390 10,059 11,103 31,782 July 26 264,579 25,402 53,039 15,589 18,842 15,415 21,135 40,844 13,097 7,734 9,913 10,836 32,733 Discounts & advances: Secured by U. S. Govt. securities: June 28. . 52,363 8,268 13,985 1,115 3,500 4,805 770 5,900 2,100 1,250 6,850 270 3,550 July 5.. 65,703 7,853 19,625 1,720 10,400 3,090 3,060 5,200 2,760 8,550 3,045 100 300 July 12.. 47,677 2 910 12,510 1,070 17,700 5,605 1,110 1,825 1,225 3 522 200 July 19.. 182,317 5^580 32,380 1,525 20,900 8,405 14,535 47,115 6,120 21,435 14,972 350 9,000 July 26.. 333,093 5,060 198,515 2,145 14,200 9,120 6,069 46,860 6,687 18,025 8,012 400 18,000 Other: June 28. . 17,000 1,071 5,338 1,360 1,547 850 714 2,346 612 425 629 595 1,513 July 5.. 18,000 1,071 5,338 2,360 1,547 850 714 2,346 612 425 629 595 1,513 July 12.. 17,166 1,071 5,338 1,360 1,547 850 714 2,346 612 425 629 595 1,679 July 19.. 17,216 1,071 5,338 1,360 1,547 850 714 2,396 612 425 629 595 1,679 July .26.. 17,243 1,071 5,338 1,360 1,547 850 741 2,396 612 425 629 595 1,679 Industrial loans: June 28 2,667 30 2,308 1 130 198 July 5 2,679 30 2,331 1 121 196 July 12 2,671 30 2,315 1 121 204 July 19 2,679 30 2,328 1 120 200 July 26 2,676 30 2,335 1 112 198 U. S. Govt. securities: Bills: June 28.... 3,836,875 264,514 894,345 255,156 355,663 247,885 205,518 581,854 211,646 118,709 178,043 174,175 349,367 July 5.... 3,976,375 274,131 926,861 264,433 368,594 256,898 212,991 603,009 219,341 123,025 184,516 180,507 362,069 July 12 3,832,575 264,218 893,343 254,870 355,264 247,607 205,288 581,202 211,409 118,576 177,843 173,980 348,975 July 19 3,629,247 250,200 845,948 241,349 336,417 234,471 194,397 550,368 200,193 112,285 168,408 164,750 330,461 July 26 4,057,547 279,727 945,782 269,831 376,118 262,142 217,339 615,319 223,818 125,537 188,282 184,192 369,460 v_>t J -i u L n JU e L lC 2 dU 8 cfa. 5,357,250 369,329 1,248,732 356,262 496,596 346,110 286,956 812,417 295,512 165,748 248,593 243,192 487,803 July 5.... 2,846,550 196,241 663,508 189,298 263,864 183,904 152,473 431,674 157,019 88,069 132,090 129,219 259,191 July 12 2,831,050 195,172 659,895 188,267 262,427 182,903 151,642 429,324 156,163 87,591 131,370 128,515 257,781 July 19.... 2,778,550 191,554 647,658 184,776 257,561 179,510 148,831 421,362 153,267 85,966 128,933 126,132 253,000 July 26 2,778,550 191,554 647,658 184,776 257,561 179,510 148,831 421,362 153,267 85,966 128,933 126,132 253,000 NoJtuense: 28 3,379,100 232,956 787,641 224,713 313,229 218,310 180,999 512,434 186,394 104,547 156,800 153,394 307,683 July 5.... 6,208,700 428,028 1,447,198 412,885 575,522 401,119 332,563 941,537 342,478 192,091 288,102 281,844 565,333 July 12 6,218,700 428,717 1,449,529 413,550 576,449 401,765 333,099 943,053 343,030 192,400 288,566 282,298 566,244 July 19.... 6,175,700 425,753 1,439,506 410,690 572,463 398,987 330,795 936,533 340,658 191,070 286,571 280,346 562,328 July 26 6,131,000 422,671 1,429,087 407,718 568,319 396,099 328,401 929,754 338,192 189,687 284,497 278,317 558,258 Bonds: June 28 5,643,800 389,083 1,315,525 375,319 523,157 364,624 302,304 855,870 311,317 174,613 261,889 256,201 513,898 July 5 5,554,700 382,941 1,294,757 369,393 514,898 358,867 297,531 842,359 306,402 171,858 257,753 252,156 505,785 July 12.... 5,411,400 373,062 1,261,354 359,864 501,615 349,609 289,856 820,628 298,498 167,423 251,105 245,651 492,735 July 19 5,286,000 364,416 1,232,125 351,524 489,990 341,509 283,139 801,611 291,581 163,543 245,286 239,958 481,318 July 26.... 4,997,100 344,500 1,164,784 332,312 463,211 322,844 267,663 757,799 275,646 154,604 231,881 226,844 455,012 Total U. S. Govt. securities: June 28 18,217,025 1,255,882 4,246,2431,211,4501,688,6451,176,929 975,7772,762,5751,004,869 563,617 845,325 826,9621,658,751 July 5 18,586,325 1,281,341 4,332,3241,236,0091,722,8781,200,788 995,5582,818,5791,025,240 575,043 862,461 843,7261,692,378 July 12 18,293,725 1,261,169 4,264,1211,216,5511,695,7551,181,884 979,8852,774,2071,009,100 565,990 848,884 830,4441,665,735 July 19 17,869,497 1,231,923 4,165,2371,188,3391,656,4311,154,477 957,1622,709,874 985,699 552,864 829,198 811,1861,627,107 July 26 17,964,197 1,238,452 4,187,3111,194,6371,665,2091,160,595 962,2342,724,234 990,923 555,794 833,593 815,4851,635,730 AUGUST 1950 1021 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENT OF CONDITION OF THE FEDERAL RESERVE BANKS, BY WEEKS—Continued [In thousands of dollars] Total Boston Y N o ew rk - d P e h lp il h a i - a C l l a e n v d e- 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 S r is a a c n n o - Assets (cont.) Total loans and securities: June 28 18,289,055 1,265,221 4,265,5961,216,2331,693,6931,182,714 977,2612,770,8211,007,581 565,490 852,804 827,8271,663,814 July 5 18,672,707 1,290,265 4,357,317 1 ?4? 4201,734,8261,204,849 999,3322,826,1251,028,612 584,214 866,135 844,4211,694,191 July 12 18,361,239 1,265,150 4,281,9991,221,2961,715,0031,188,460 981,7092,778,3781,009,712 567,844 853,035 831,2391,667,414 July 19 18,071,709 1,238,574 4,202,985 1,193,5521,678,8791,163,852 972,4112,759,385 992,431 574,924 844,799 812,1311,637,786 July 26 18,317,209 1,244,583 4,391,1941,200,4771,680,9571,170,677 969,0442,773,490 998,222 574,442 842,234 816,4801,655,409 Due from foreign banks: June 28 28 2 15 3 3 2 1 5 1 1 1 1 3 July 5...... 24 2 17 2 2 1 1 3 1 1 1 1 2 July 12. , . 24 2 17 2 2 1 1 3 1 1 1 1 2 July 19 24 2 i 7 2 2 1 1 3 1 1 1 1 2 July 26 24 2 17 2 2 1 1 3 1 1 1 1 2 Federal Reserve notes of other Banks: June 28 112,582 5,077 17,777 5,587 5,696 10,956 12,360 16,053 8,503 3,628 8,222 5,179 13,544 July 5 93,710 4,766 15,862 3,884 5,299 11,719 8,211 12,626 5,196 3,619 5,729 3,030 13,769 July 12 123,087 6,520 23,657 6,922 5,923 12,444 12,426 16,310 8,186 4,772 7,972 4,888 13,067 July 19...... 140,532 9,290 26,921 7,447 7,247 15,481 12,108 18,622 7,043 6,165 9,085 4,888 16,235 July 26 139,400 6,933 22,419 6,771 6,764 17,450 12,839 19,323 8,173 6,655 8,617 4,795 18,661 Uncollected items: June 28...... 2,631,685 211,119 499,078 176,532 243,152 207,717 160,654 432,405 137,532 78,992 138,138 115,382 230,984 July 5...... 2,409,188 214,235 446,545 182,771 220,276 197,783 152,328 378,421 139,491 66,245 130,241 110,139 170,713 July 12 2,929,879 224,986 524,236 193,507 263,150 236,678 191,739 496,622 168,592 90,677 173,251 130,764 235,677 July 19. 3,155,972 247,691 589,532 209,542 300,480 252,829 198,532 509,398 169,495 89,693 174,130 151,765 262,885 July 26 2,795,695 216,671 500,727 176,434 253,826 226,664 174,927 447,574 150,497 85,884 154,217 172,158 236,116 Bank premises: June 28...... 35,225 1,101 7,791 2,953 4,860 2,525 1,512 3,846 2,026 1,130 2,280 700 4,501 July- 5...... 35,183 1,101 7,762 2,953 4,859 2,525 1,512 3,845 2,022 1,130 2,275 697 4,502 July 12 35,313 1,101 7,762 2,953 4,859 2,525 1,512 3,845 2,023 1,130 2,275 697 4,631 July 19 35,438 1,101 7,762 2,953 4,855 2,549 1,513 3,950 2,022 1,130 2,275 697 4,631 July 26 35,546 1,097 7,762 2,948 4,848 2,567 1,509 3,929 2,023 1,130 2,275 697 4,761 Other assets: June 28 104,426 6,924 23,479 6,690 9,830 7,051 5,553 15,843 6,927 3,106 5,082 4,625 9,316 July 5 78,398 5,121 17,375 5,013 7,595 5,331 4,145 11,886 5,442 2,297 3,895 3,368 6,930 July 12 82,101 5,427 18,389 5,262 7,330 5,352 4,317 12,593 5,763 2,369 4,367 3,542 7,390 July 19...... 85,850 5,686 19,090 5,436 7,827 5,569 4,510 13,173 5,969 2,473 4,546 3,877 7,694 July 26 88,927 5,953 19,614 5,538 7,992 5,880 4,689 13,866 6,127 2,595 4,686 3,951 8,036 Total assets: June 28 44,367,598 2,463,455 11,821,4582,722,0293,755,7452,519,7382,195,6147,763,0701,859,5761,132,7151,869,0221,618,0284,647,148 July 5 44,463,997 2,505,365 11,944,5862,820,6643,692,7842,517,5562,191,2737,735,4501,867,6431,118,0141,887,7881,586,4404,596,434 July 12. 44,712,891 2,431,780 11,881,9762,747,9133,689,0682,538,4072,239,0457,887,7691,882,9671,137,7661,933,6991,663,0894,679,412 July 19 44,690,618 2,484,202 11,780,2602,778,3063,735,0042,530,9722,218,5997,885,4551,896,3281,141,0111,926,1821,643,2944,671,005 July 26...... 44,537,343 2,437,769 11,965,0372,729,5993,696,9332,501,2282,191,6087,811,3561,869,2261,123,1581,904,4621,663,8034,643,164 Liabilities Federal Reserve notes: June 28 22,800,803 1,392,266 5,136,8921,609,5852,042,122 1,508,2361,249,6614,428,625 1,039,112 598,696 898,623 611,1572,285,828 July 5 23,047,968 1,412,456 5,200,6181,626,7542,056,399 1,519,3371,264,3594,471,2481,049,799 603,348 907,741 616,6662,319,243 July 12 22,969,363 1,403,237 5,166,5791,619,2942,057,9681,514,9771,255,6554,469,905 1,047,442 600,898 905,097 613,1882,315,123 July 19 22,868,405 1,389,973 5,148,0431,611,7202,049,638 1,502,0711,246,7014,462,107 1,044,379 597,373 903,064 609,6582,303,678 July 26...... 22,768,730 1,384,513 5,125,4691,602,6252,041,835 1,496,8711,241,3334,447,1131,039,327 593,860 898,853 608,3762,288,555 Deposits: Member bank —reserve account: June 28. . 15,988,451 664,191 5,181,136 759,3971,177,358 636,360 664,5132,557,534 568,021 375,961 743,832 778,3531,881,795 July 5.. 16,253,943 703,884 5,334,254 790,0611,176,316 648,786 674,6092,596,424 565,319 379,741 762,612 746,9061,875,031 July 12.. 16,448,487 675,045 5,333,354 771,5551,189,720 668,334 684,1072,671,657 574,415 383,781 776,673 822,9051,896,941 July 19.. 16,157,309 688,824 5,183,909 764,5581,188,333 658,840 678,5602,610,327 577,594 383,342 763,395 777,7101,881,917 July 26.. 16,415,032 681,020 5,461,644 761,7871,202,081 659,476 663,8592,627,760 568,249 373,577 758,073 774,4731,883,033 urer-general account: June 28.. 866,069 73,190 181,331 34,259 133,604 73,754 47,172 120,482 43,689 38,884 30,014 42,523 47,167 July 5.. 645,308 57,738 145,351 69,614 73,783 50,954 34,114 65,282 37,618 23,814 19,020 38,060 29,960 July 12.. 382,708 22,747 85,815 26,602 27,531 28,380 35,757 36,038 23,073 22,354 20,917 22,606 30,888 July 19.. 525,474 38,707 93,714 51,653 44,169 31,590 27,384 88,270 32,642 25,787 30,241 28,799 32,518 July 26.. 503,995 35,320 103,501 46,543 37,597 32,449 35,667 42,359 38,708 25,793 30,389 42,093 33,576 June 28. . 1,140,308 70,995 2367,235 90,152 102,548 56,345 47,330 155,512 40,568 28,173 41,695 39,442 100,313 July 5.. 1,179,966 73,641 2378,081 93,512 106,370 58,445 49,094 161,308 42,080 29,223 43,249 40,912 104,051 July 12. . 1,179,926 74,012 2373,992 93,984 106,907 58,740 49,342 162,122 42,293 29,370 43,468 41,118 104,578 July 19. . 1,201,647 75,367 2380,965 95,704 108,863 59,815 50,245 165,089 43,067 29,908 44,263 41,870 106,491 July 26.. 1,174,069 73,452 2374,240 93,272 106,097 58,295 48,968 160,894 41,972 29,148 43,138 40,807 103,786 Other: June 28.. 300,337 4,307 239,334 1,874 3,384 2,263 383 2,341 5,294 1,237 3,146 495 36,279 July 5.. 289,585 1,990 223,662 1,521 5,347 6,025 1,028 2,965 7,853 1,198 3,814 685 33,497 July 12.. 277,298 4,917 206,642 3,302 4,768 5,661 1,151 2,787 5,746 1,586 2,670 2,603 35,465 July 19.. 260,696 5,178 199,920 5,233 4,587 3,599 455 2,792 6,009 1,190 661 487 30,585 July 26.. 264,963 4,506 208,903 1,838 3,333 2,243 647 4,416 5,565 1,415 606 1,147 30,344 1 After deducting $23,000 participations of other Federal Reserve Banks on June 28; and $17,000 on July 5; July 12; July 19; and July 26. 2 After deducting $773,053,000 participations of other Federal Reserve Banks on June 28; $801,865,000 on July 5; $805,913,000 on July 12; $820,- 662!,,000000 on July 19; and $799,808,000 on July 26. 1022 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 (In thousands of dollars] Total Boston Y N o e r w k d P e h lp il h a i - a C l l a e n v d e- m Ri o c n h d - Atlanta Chicago L S ou t. is M ap in o n li e s - K C an it s y as Dallas F c S r is a a c n n o - Liabilities (cont.): Total deposits: June 28 18,295,165 812,683 5,969,036 885,682 1,416,894 768,722 759,3982,835,869 657,572 444,255 818,687 860,8132,065,554 July 5.... 18,368,802 837,253 6,081,348 954,708 1,361,816 764,210 758,8452,825,979 652,870 433,976 828,695 826,5632,042,539 July 12 18,288,419 776,721 5,999,803 895,443 1,328,926 761,115 770,3572,872,604 645,527 437,091 843,728 889,2322,067,872 July 19.... 18,145,126 808,076 5,858,508 917,148 1,345,952 753,844 756,6442,866,478 659,312 440,227 838,560 848,8662,051,511 July 26 18,358,059 794,298 6,148,288 903,440 1,349,108 752,463 749,1412,835,429 654,494 429,933 832,206 858,5202,050,739 l/cicilcU. dVctllci" bility items: June 28.... 2,353,888 199,830 445,931 155,590 212,331 194,176 145,715 371,549 126,094 64,760 115,839 110,752 211,321 July 5.... 2,131,557 197,029 394,026 168,181 190,196 185,421 127,270 311,420 128,229 55,714 115,487 108,044 150,540 July 12.... 2,533,783 192,583 445,694 161,739 217,639 213,360 171,945 417,653 152,895 74,589 148,689 125,236 211,761 July 19.... 2,752,408 226,905 503,183 177,766 254,432 225,790 173,968 428,708 155,372 78,118 148,255 149,059 230,852 July 26.... 2,476,816 199,146 417,817 151,344 220,262 202,113 159,425 399,418 137,724 73,847 136,700 160,822 218,198 V_/ LIICI -Lid UIJ.1 Ult-b including accrued dividends: June 28.... 16,377 1,094 4,620 948 1,720 818 771 2,478 673 500 549 743 1,463 July 5.... 9,773 845 2,568 476 1,217 493 437 1,554 424 328 377 377 677 July 12.... 10,023 969 2,746 509 917 521 439 1,585 434 377 341 384 801 July 19 8,852 748 2,363 416 948 437 388 1,437 352 331 332 420 680 July 26.... 11,619 852 3,907 513 1,125 550 480 1,688 435 351 377 512 829 Ti nottaaii lliiaahDiiiiitiixViecs-. June 28.... 43,466,233 2,405,873 11,556,4792,651,8053,673,067 2,471,952 2,155,545 7,638,521 1,823,451 1,108,211 1,833,698 1,583,465 4 564 166 July 5.... 43,558,100 2,447,583 11,678,5602,750,1193,609,628 2,469,4612,150,911 7,610,201 1,831,322 1,093,366 1,852,300 1,551,650 4,512,999 July 12 43,801,588 2,373,510 11,614,822 2,676,9853,605,450 2,489,9732,198,396 7,761,747 1,846,298 1,112,955 1,897,855 1,628,040 4,595,557 July 19 43,774,791 2,425,702 11,512,0972,7O7;O5O3,650,970 2,482,142 2,177,701 7,758,730 1,859,415 1,116,049 1,890,211 1,608,003 4,586,721 July 26 43,615,224 2,378,809 11,695,4812,657,9223,612,330 2,451,997 2,150,379 7,683,648 1,831,980 1,097,991 1,868,136 1,628,230 4,558,321 Capital Accts.: Capital paid in: June 28.... 219,074 12,132 73,068 15,443 20,220 9,498 8,692 27,930 7,166 4,897 7,749 9,228 23,051 July 5.... 219,499 12,135 73,125 15,453 20,298 9,508 8,713 27,979 7,178 4,904 7,810 9,276 23,120 July 12 219,766 12,168 73,158 15,501 20,311 9,521 8,734 27,993 7,213 4,916 7,824 9,313 23,114 July 19 220,010 12,177 73,153 15,517 20,317 9,642 8,742 28,013 7,218 4,923 7,831 9,348 23,129 July 26.... 220,149 12,178 73,164 15,521 20,332 9,642 8,748 28,098 7,219 4,928 7,840 9,350 23,129 Surplus: (section 7): June 28 488,173 30,778 148,149 38,205 45,957 23,779 21,194 72,029 19,118 12,494 18,045 15,873 42,552 July 5.... 488,173 30,778 148,149 38,205 45,957 23,779 21,194 72,029 19,118 12,494 18,045 15,873 42,552 July 12 488,173 30,778 148,149 38,205 45,957 23,779 21,194 72,029 19,118 12,494 18,045 15,873 42,552 July 19.... 488,173 30,778 148,149 38,205 45,957 23,779 21,194 72,029 19,118 12,494 18,045 15,873 42,552 July 26 488,173 30,778 148,149 38,205 45,957 23,779 21,194 72,029 19,118 12,494 18,045 15,873 42,552 f section 1 ^W) • June 28 27,543 3,011 7,319 4,489 1,006 3,349 762 1,429 521 1,073 1.137 1,307 2,140 July 5.... 27,543 3,011 7,319 4,489 1,006 3,349 762 1,429 521 1,073 1,137 1,307 2,140 July 12.... 27,543 3,011 7,319 4,489 1,006 3,349 762 1,429 521 1,073 1,137 1,307 2,140 July 19.... 27,543 3,011 7,319 4,489 1,006 3,349 762 1,429 521 1,073 1,137 1,307 2,140 July 26 27,543 3,011 7,319 4,489 1,006 3,349 762 1,429 521 1,073 1,137 1,307 2,140 Other cap. accts.: June 28.... 166,575 11,661 36,443 12,087 15,495 11,160 9,421 23,161 9,320 6,040 8,393 8,155 15,239 July 5.... 170,682 11,858 37,433 12,398 15,895 11,459 9,693 23,812 9,504 6,177 8,496 8,334 15,623 July 12.... 175,821 12,313 38,528 12,733 16,344 11,785 9,959 24,571 9,817 6,328 8,838 8,556 16,049 July 19 180,101 12,534 39,542 13,045 16,754 12,060 10,200 25,254 10,056 6,472 8,958 8,763 16,463 July 26 186,254 12,993 40,924 13,462 17,308 12,461 10,525 26,152 10,388 6,672 9,304 9,043 17,022 X OLclI llcLDlllUlcS and cap. accts.: June 28.... 44,367,598 2,463,455 11,821,4582,722,0293,755,745 2,519,7382,195,614 7,763,070 1,859,576 1,132,715 1,869,022 1,618,028 4,647,148 July 5.... 44,463,997 2,505,365 11,944,5862,820,6643,692,784 2,517,5562,191,273 7,735,450 1,867,643 1,118,014 1,887,788 1,586,440 4,596,434 July 12.... 44,712,891 2,431,780 11,881,9762,747,9133,689,068 2,538,4072,239,045 7,887,769 1,882,967 1,137,766 1,933,699 1,663,089 4,679,412 July 19 44,690,618 2,484,202 11,780,2602,778,3063,735,0042,530,972 2,218,599 7,885,455 1,896,328 1,141,011 1,926,182 1,643,294 4,671,005 July 26 44,537,343 2,437,769 11,965,0372,729,5993,696,933 2,501,2282,191,608 7,811,356 1,869,226 1,123,158 1,904,462 1,663,803 4,643,164 Contingent liability on acceptances purchased for foreign correspondents: June 28 5,511 347 11,731 441 502 276 231 761 198 137 204 193 490 July 5.... 5,982 393 !l,7O3 499 568 312 262 861 224 156 231 218 555 July 12.... 5,841 368 11,834 467 532 292 245 806 210 146 216 205 520 July 19 5,924 373 11,860 474 539 296 249 818 213 148 219 208 527 July 26 7,919 499 12,487 633 721 396 332 1,093 285 198 293 277 705 Commitments to make industrial loans: June 28.... 1,208 315 454 60 254 125 July 5'.','.'.'. 1364 473 453 60 253 125 July 12.... 1,391 487 453 60 269 122 July .19. 1 371 468 452 60 269 122 July 26! '. '. '. 1^426 521 451 60 272 122 i After deducting $3,780,000 participations of other Federal Reserve Banks on June 28; $4,279,000 on July 5; $4,007,000 on July 12; $4,064,000 on July 19; and $5,432,000 on July 26. AUGUST 1950 1023 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENT OF CONDITION OF THE FEDERAL RESERVE BANKS, BY WEEKS—Continued FEDERAL RESERVE NOTES.—FEDERAL RESERVE AGENTS' ACCOUNTS, BY WEEKS [In thousands of dollars] Total Boston Y N o e r w k d P e h lp il h a i - a C l l a e n ve d - m Ri o c n h d - la A n t t - a Chicago Lo St u . is M a i p n ol n i e s - K C an it s y as Dallas F c S r is a a c n n o - F.R.notes outstanding (issued to Bank): June 28 23,538,876 1,424,2595,276,222 1,655,5012,107,916 1,560,9501,310,2274,514,6661,084,657611,636 928,908 650,598 2,413,336 July 5 23,665,914 1,439,250 5,319,8451,663,1832,119,753 1,568,6281,316,4774,537,5641,088,817614,055 993300,,850 649,5712,417,921 July 12 23,748,062 1,442,1475,326,416 1,670,2122,130,082 1,574,2601,324,6824,551,8811,101,437 614,439 936,248648^460 2,427,798 July 19 23,688,381 1,439,459 5,30"2 ,0431,667,9212,127,176 1,566,9971,316,268 4,546,9681,095,771 932,370 646,2312,434,086 July 26 23,632,205 1,438,0375,293,081 1,662,534 2,123,8581,558,3291,310,606 4,539,1321,088,355 610,889 930,404 646,8632,430,117 Collateral held against notes outstanding: Gold certificates: June 28 14,249,000 440,000 4,670,000 750,0001,000,000 670,000 675,000 2,950,000 400,000 210,000 280,000 204,000 2,000,000 July 5 14,349,000 440,000 4,770,000 750,0001,000,000 670,000 675,000 2,950,000 400,000 210,000 280,000 204,000 2,000,000 July 12 14,304,000 440,000 4,770,000 750,000 925,000 670,000 675,000 2,980,000 400,000 210,000 280,000 204,000 2,000,000 July 19 14,304,000 440,000 4,770,000 750,000 925,000 670,000 675,000 2,980,000 400,000 210,000 280,000 204,000 2,000,000 July 26 14,304,000 440,000 4,770,000 750,000 925,000 670,000 675,000 2,980,000 400,000 210,000 280,000 204,000 2,000,000 Eligible paper: June 28 38,223 8,268 11,285 1,115 3,805 2,100 1,250 6,850 3,550 July 5 45,893 7,853 17,575 2,720 3,090 2,760 8,550 3,045 300 July 12 26,507 2,910 12,010 1,070 5,605 1,225 3,522 165 July 19 99,522 5,580 32,320 1,525 8,405 6,120 21,435 14,972 9,165 July 26 260,555 5,060 196,140 2,145 8,320 6,687 18,025 8,012 16,166 U. S. Govt. sec.: June 28 10,450,000 1,100,000 700,000 1,000,0001,150,000 950,000 700,000 1,600,000 800,000 450,000 700,000 500,000 800,000 July 5 10,450,000 1,100,000 700,000 ,000,0001,150,000 950,000 700,000 1,600,000 800,000 450,000 700,000 500,000 800,000 July 12 10,550,000 1,100,000 700,000 1,000,0001,250,000 950,000 700,0001,600,000 800,000 450,000 700,000 500,000 800,000 July 19 10,550,000 1,100,000 700,000 1,000,0001,250,000 950,000 700,0001,600,000 800,000 450,000 700,000 500,000 800,000 July 26 10,550,000 1,100,000 700,0001,000,0001,250,000 950,000 700,000 1,600,000 800,000 450,000 700,000 500,000 800,000 Total collateral: June 28 24,737,223 1,548,268 5,381,2851,751,115 2,150,0001,623,8051,375,000 4,550,0001,202,100 661,250 986,850704,000 2,803,550 July 5... 24,844,893 1,547,853 5,487,5751,752,720 2,150,0001,623,0901,375,000 4,550,000 1,202,760 668,550 983,045704,000 2,800,300 July 12 24,880,507 1,, 542,. 910 5,. 482.,010 1,751,070 2,175,0001,625,6051,375,000 4,580,000 1,200,000 661,225 983,522704,000 2,800,165 July 19 v. 24,953,522 1,545,580 5,502,3201,751,525 2,175,0001,628,4051,375,000 4,580,0001,206,120 681,435 994,972704,000 2,809,165 July 26 25,114,555 1,545,0605,666,140 1,752,145 2,175,0001,628,3201,375,000 4,580,0001,206,687678,025 988,012704,000 2,816,166 INDUSTRIAL LOANS BY FEDERAL RESERVE BANKS MEMBER BANK RESERVES AND BORROWINGS [Amounts in thousands of dollars] [Averages of daily figures. In millions of dollars] W o D r e a l d t a e n s t e ( s l d d a a s a y t y A a p p t p o p l i r c d o a a v t t i e e o d ns b p u c ro o t m v n e - o d t st L a o n o u d a t i n - n s g2 C m o o m e u n m t- ts it-o in P p t f g u a a f t t r i i i i n t o o n i a c n n s n i t s s - c i- - week en M di o n n g t h W , o e r dnesday b m a b A n e e k m l r l s - i C N e c n e i w t t r y a l b r a e n C s k e h s r i- ve b s c R e a i r n e t v y - k e s b C a t o n r u y k n s - 1 of period) pleted i (amount) standing out- York cago Num- (amount) (amount) standing ber Amount (amount) Total reserves held: 1939 ..... 2,781 188,222 2,659 13,683 9,220 10,981 1949—June 18,068 4,849 1,151 6,822 5,247 1940 2,908 212,510 13,954 9,152 5,226 6,386 1950—May 15,941 4,273 1,088 6,144 4,437 1941 3,202 279,860 8,294 10,337 14,597 19,600 June 16,194 4,425 1,113 6,215 4,440 1942 3,423 408,737 4,248 14,126 10,661 17,305 1943 3,471 491,342 926 10 532 9,270 17,930 June 21 16,522 4,618 1,119 6,261 4,524 1944 3,489 525,532 1,295 3,894 4,165 2,705 June 28 16,093 4,399 1,110 6,208 4,376 1945 3,511 544,961 320 1,995 1,644 1,086 July 5.. 16,137 4,365 1,113 6,249 4,409 1946 3,542 565,913 4,577 554 8,309 2,670 July 12 16,500 4,412 1,126 6,373 4,589 1947 3,574 586,726 945 1,387 7,434 4,869 July 19 16,177 4,303 1,100 6,283 4,491 1948 3,607 615,653 335 995 1,643 .1,990 July 26 16,219 4,337 1,119 6,285 4,478 1949 Excess reserves: Jan. 31... 3,607 615,893 85 1,005 1,677 2,077 1949—June 758 69 10 180 499 Feb. 28... 3,608 616,340 45 907 1,624 2,042 1950—May 704 14 -3 137 557 A M p a r r . . 3 3 1 0 . . . . . . 3 3 , , 6 6 1 1 0 3 6 6 2 2 0 0 , , 1 5 9 9 2 5 1 4 5 5 2 9 8 0 1 6 9 3 2 , ,3 2 9 7 9 0 3 2 , , 6 81 7 1 7 June 766 68 3 156 539 May 31... 3,614 620,984 245 753 2,349 2,737 June 21 986 204 3 167 612 June 30... 3,615 621,297 205 614 2,278 2,619 June 28 640 20 1 142 477 July 30... 3,617 621,601 220 660 2,263 2,563 July 5 661 -7 -2 159 511 Aug. 31... 3,623 622,327 545 662 2,072 1,926 July 12... 1,001 68 14 246 673 Sept. 30... 3,630 625,301 912 1,016 1,958 2,023 July 19 *>669 -18 -13 119 P581 Oct. 31... 3,637 626,273 1,514 1,075 1,820 1,965 July 26 ?716 25 4 116 *>571 Nov. 30... 3,644 628,523 1,277 1,954 1,818 2,848 Dec. 31... 3,649 629,326 539 2,178 2,288 2,947 Borrowings at Federal 1950 Reserve Banks: Jan. 31... 3,652 629,764 544 2,223 1,941 2,649 1949—June 100 27 3 32 39 Feb. 28. .. 3,655 630,209 223 2,505 1,197 2,628 1950—May 80 11 1 37 30 Mar. 31.... 3,663 632,049 1,225 2,673 1,272 2,651 June 68 10 3 29 26 Apr. 29.. . 3,667 632,573 1,172 2,665 1,288 2,652 May 31... 3,670 633,124 1,306 2,675 1,286 2,641 June 21 40 2 17 21 June 30... 3,'677 638,015 4,416 2,779 1,352 2,731 J Ju u l n y e 28 5 1 5 1 1 0 '""53' 1 1 3 2 8 4 2 1 6 8 July 12 34 14 20 1 Includes applications approved conditionally by the Federal Re- July 19 109 41' "'ii' 40 17 serve Banks and under consideration by applicant. July 26 226 101 33 66 26 2 Includes industrial loans past due 3 months or more, which are not included in industrial loans outstanding in weekly statement of condition of Federal Reserve Banks. P Preliminary. r Revised. the N O su T m E .— of T t h h e e d i f f o f l e l r o e w n i c n e g be fo tw ur e e c n o l a u m m o n u s n t r e o p f r a e p se p n li t c s a t r i e o p n a s y a m p e p n ro ts v e o d f a a n d d - 1 Weekly figures of excess reserves of all member banks and of vances, and applications for loans and commitments withdrawn or country banks are estimates. Weekly figures of borrowings of all memexpired. ber banks and of country banks may include small amounts of Federal Reserve Bank discounts and advances for nonmember banks, etc. Back figures.—See Banking and Monetary Statistics, pp. 396-399. 1024 FEDERAL RESERVE BULLETIN 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] Central reserve Central reserve b m a b A e n e m l r k l s - Ne c w ity ban C ks hi- b s c R a e i n r e t v y k - e s C ba t o r n u y k n s - b m a b A e n e m l r k l s - Ne c w ity ban C ks hi- b s c R a e i r n e t v y k - e s C ba t o r n u y k n s - York cago York cago First half of June 1950 Second half of June 1950 Gross demand deposits: Total 91 ,597 20,836 5,285 34,811 30,665 92,423 21,264 5,340 35,205 30,614 Interbank 10,683 3,695 1,073 5,049 866 10,709 3,786 1,071 4,998 854 Other 80,914 17,140 4,212 29,762 29,800 81,714 17,478 4,269 30,207 29,760 Net demand deposits 2 80,450 19,215 4,774 30,249 26,212 81,191 19,591 4,812 30,506 26,283 Demand deposits adjusted 3. 79 700 72,850 Time deposits 4 29,722 1,776 1,094 11,796 15,056 29,753 1,790 1,096 11,835 15,030 Demand balances due from domestic banks... 5,365 34 122 1,689 3,520 5,363 40 124 1,768 3,431 Reserves with Federal Reserve Banks: Total 16,146 4,380 1,116 6,203 4,446 16,241 4,471 1,109 6,227 4,435 Required 15,354 4,316 1,105 6,035 3,898 15,501 4,400 1,114 6,083 3,905 Excess 792 64 11 169 548 739 71 -5 144 529 Borrowings at Federal Reserve Banks. 78 8 5 37 28 58 11 1 22 23 1 Averages of daily closing figures for reserves and borrowings and of daily opening figures for other items, inasmuch as reserves re quired are based on deposits at opening of business. 2 Demand deposits subject to reserve requirements, i. e., gross demand deposits minus cash items reported as in process of collection and demand balances due from domestic banks. 3 Demand deposits adjusted (demand deposits other than interbank and U. S. Government, less cash items reported as in process of collection) are estimated for all member banks, but not by class of bank. 4 Includes some interbank and U. S. Government time deposits; the amounts on call report dates are shown in the Member Bank Call Report. DEPOSITS OF COUNTRY MEMBER BANKS IN LARGE AND BANK SUSPENSIONS1 SMALL CENTERS 1 [Averages of daily figures. In millions of dollars] Member Nonmember Total, banks banks all In places of 15,000 In places of under banks and over population 15,000 population ti N on a- al State su In re - d in N s o u n r - ed Demand Demand d e e x p c o e s p it t s Time d e e x p c o e s p i t ts Time Num 1 b 9 e 3 r 4 o - f 4 2 banks suspended: 330 20 6 216 88 inter- deposits inter- deposits bank bank 1943 4 2 2 1944 1 1 1945 0 1949 1946.. 0 April 16,289 8,829 11,753 6,063 1947 1 1 May 16,209 8,830 11,622 6,062 1948 0 June 16,271 8,817 11,591 6,060 1949 4 4 1950—Jan.-July 1 1 1950 A M p a r y il 1 17 7 , , 4 3 1 6 2 6 8 8 , , 9 94 2 1 3 1 1 2 2 , , 1 1 4 1 5 7 6 6, , 1 1 1 1 9 6 De ( p in o s t i h ts o u o s f a n su d s s p o e f n d d e o d l la b r a s n ): k 2 s June 17,620 8,926 12,160 6,117 1934-42 137,362 18,01626,548 51,567 41,231 By district, 1943 6,223 4,982 1,241 June 1950 1944 405 405 1945 0 Boston 2,109 829 346 229 1946 0 New York. 3,314 2,253 1,115 1,157 1947 167 167 Philadelphia 1,339 833 956 908 1948 0 Cleveland.. 1,405 918 1,035 810 1949 2,443 2,443 1950—Jan.-July (3) (3) Richmond 1,125 417 838 483 A Ch tl i a c n ag ta o 2 1 , ,6 4 4 4 3 2 1,6 4 3 6 8 7 1,7 7 1 0 8 9 2 97 2 1 7 1 Represents banks which, during the periods shown, closed tem- St. Louis 694 351 978 293 porarily or permanently on account of financial difficulties; does not include banks whose deposit liabilities were assumed by other banks Minneapolis 618 303 749 449 at the time of closing (in some instances with the aid of Federal Deposit D K a a l n l s a a s s City 1, 5 10 9 0 5 1 1 0 6 9 5 1 1 , , 5 6 8 3 3 8 21 8 2 0 Ins 2 u D ra e n p c o e s it C s or o p f or m at e i m on b e l r o a b n a s) n . ks and insured nonmember banks sus- San Francisco 1,236 641 494 298 pended are as of dates of suspensions, and deposits of noninsured nonmember banks are based on the latest data available at the time the suspensions were reported. 1 Includes any banks in outlying sections of reserve cities that have 3 Deposit figures not available. been given permission to carry the same reserve as country banks. Back figures.—See Banking and Monetary Statistics, pp. 283-292; for description, see pp. 281-282 in the same publication. AUGUST 1950 1025 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 currency 2 Large denomination currency 2 End of year or in cir- Unasmonth cula- sorted tion * 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 1,360 364 125 237 10 1934.. 5,536 4,292 452 423 32 771 1,288 1,326 1,254 337 112 216 5 7 10 1935.. 5,882 4,518 478 460 33 815 1,373 1,359 1,369 358 122 239 7 16 5 1936.. 6,543 5,021 517 499 35 906 1,563 1,501 1,530 399 135 265 7 18 8 1937.. 6,550 5,015 537 505 33 905 1,560 1,475 1,542 387 139 288 6 12 7 1938.. 6,856 5,147 550 524 34 946 1,611 1,481 1,714 409 160 327 17 32 5 1939.. 7,598 5,553 590 559 36 ,019 1,772 1,576 2,048 460 191 425 20 32 2 1940.. 8,732 6,247 648 610 39 ,129 2,021 1,800 2,489 538 227 523 30 60 4 1941.. 11,160 8,120 751 695 44 ,355 2,731 2,545 3,044 724 261 556 24 46 4 1942.. 15,410 11,576 880 801 55 ,693 4,051 4,096 3,837 1,019 287 586 9 25 3 1943.. 20,449 14,871 1,019 909 70 ,973 5,194 5,705 5,580 1,481 407 749 9 22 2 1944.. 25,307 17,580 1,156 987 81 ,150 5,983 7,224 7,730 1,996 555 990 10 24 3 1945.. 28,515 20,683 1,274 1,039 73 2,313 6,782 9,201 7,834 2,327 454 801 7 24 2 1946.. 28,952 20,437 1,361 1,029 67 2,173 6,497 9,310 8,518 2,492 438 783 8 26 3 1947.. 28,868 20,020 1,404 1,048 65 2,110 6,275 9,119 8,850 2,548 428 782 5 17 3 1948.. 28,224 19,529 1,464 1,049 64 2,047 6,060 8,846 8,698 2,494 400 707 5 17 3 1949—March 27,439 18,930 1,445 992 61 1,965 5,913 8,555 8,510 2,428 392 696 5 10 1 April 27,417 18,925 1,450 994 60 1,967 5,913 8,541 8,493 2,421 390 700 5 9 1 May 27,507 18,993 1,456 1,011 61 1,986 5,934 8,544 8,515 2,422 388 712 5 9 1 June 27,493 18,982 1,459 1,008 61 1,971 5,931 8,551 513 2,426 387 712 5 9 2 July 27,394 18,908 1,457 1,001 60 1,959 5,901 8,529 488 2,410 385 717 4 9 2 August 27,393 18,901 1,462 1,003 61 1,958 5,900 8,517 8,494 2,406 383 712 4 9 2 September... 27,412 18,917 1,468 1,018 60 1,970 5,905 496 8,498 2,401 382 705 4 9 2 October. 27,407 18,915 1,474 1,031 60 1,973 5,891 486 8,494 2,392 381 701 4 9 2 November.. . 27,543 19,040 1,484 1,046 61 1,994 5,935 8,520 8,506 2,398 382 692 4 8 2 December. . . 27,600 19,025 1,484 1,066 62 2,004 5,897 8,512 8,578 2,435 382 689 4 11 3 1950—January 26,941 18,475 ,457 1,008 60 1,926 5,715 8,309 8,469 2,401 380 666 4 3 February.. . . 27,068 18,645 ,459 1,011 60 1,949 5,817 8,348 8,426 2,385 378 661 5 3 March 27,042 18,651 ,468 1,013 59 1,949 5,834 8,327 8,393 2,375 384 654 5 1 April 27,048 18,661 ,478 1,016 60 1,945 5,830 8,333 8,389 2,380 382 650 4 11 1 May 27,090 18,730 ,490 1,033 60 1,963 5,851 8,333 8,361 2,380 381 639 9 1 June 27,156 18,813 ,496 1,037 61 1,966 5,891 8,363 8,344 2,386 378 628 9 2 1 Total of amounts of coin and paper currency shown by denominations less unassorted currency in Treasury and Federal Reserve Banks. 2 Includes unassorted currency held 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 circulation x Money Total out- held by standing, As security For Federal Ju 1 n 9 e 5 3 0 0, g a o s g l i d a lv in e a r s n t d Tre ca a s s h ury B R F an e e d k se s e r r a v a n e l d B R a a n e g k s e e s n r t v a s e nd Ju 1 n 9 e 5 3 0 0, M 1 ay 95 3 0 1, Ju 1 n 9 e 4 9 30, certificates agents Gold 24,231 23,023 2 1,208 Gold certificates 23,023 20,167 2,816 41 41 43 Federal Reserve notes 23 603 52 791 22 760 22 694 23 209 Treasury currency—total 4,607 2 2,326 38 214 4,355 4,355 4,241 Standard silver dollars 493 303 17 3 170 169 164 Silver bullion 2,023 2,023 Silver certificates and Treasury notes of 1890.. »2,326 147 2,178 2,180 2,062 Subsidiary silver coin 1,002 10 26 965 961 940 Minor coin . . 378 8 10 361 360 355 United States notes 347 2 23 321 322 319 Federal Reserve Bank notes 277 (5) f • • • 3 274 276 309 National Bank notes 88 (5) 1 86 87 93 Total—June 30 1950 (4) 25,349 1,298 20,167 3,820 27,156 May 31, 1950 (4) 25,338 1,309 20,183 3,777 27,090 June 30, 1949 (4) 25,555 1,307 20,430 3,875 27,493 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. 1017 and seasonally adjusted figures in table on p. 1027. 2 Includes $156,039,431 held as reserve against United States notes and Treasury notes of 1890. 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. 5 Less than $500,000. 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 bullion 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 alike 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. 1026 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MONEY IN CIRCULATION WITH ADJUSTMENT FOR POSTAL SAVINGS SYSTEM SEASONAL VARIATION [In millions of dollars] [Outside Treasury and Federal Reserve Banks. In millions of dollars] Assets Amount— Amount— Change in Date f u o v n r a a r s d i e j a a u t s s i o o te n n d al ad v s j a e u r a s i s t a e o t d n io a n l for s a e s d a e s j r u o i s n e t s a e l d 1 ly End of month D i b t e o a p r l o - s s ' - C i a n sh G U ov . e S rn . - re C s a e s rv h e ances * Total deposi- ment funds, tory securi- End of period: banks ties 1939 7,598 +742 1940 8,732 +1,134 1941 11,160 +2,428 1943—December 1,788 1,843 10 1,716 118 1942..... 15,410 +4,250 1944—December 2,342 2,411 8 2,252 152 1943.... 20,449 +5.039 1945—December.... 2,933 3,022 6 2,837 179 1944. 25,307 +4,858 1946—December 3,284 3,387 6 3,182 200 1945... 28,515 +3,208 1947—December 3,417 3,525 6 3,308 212 1946.... 28,952 +437 1948—December 3,330 3,449 7 3,244 198 1947. 28,868 -84 1948..... 28,224 -644 1949—February. . . . 3,333 3,454 7 3,244 202 1949.... 27,600 -624 March 3,327 3,447 7 3,254 186 April 3,314 3,435 3,239 188 Averages of daily figures: May 3,294 3,418 7 3,212 198 June 3,277 3.403 7 3,188 209 1949—June 27,432 27,570 -61 July 3,266 3,393 6 3,187 199 July 27,472 27,527 -43 August 3,248 3,375 6 3,172 196 August 27,397 27,535 +8 September. . . 3,230 3,350 6 3,152 191 September 27,451 27,506 -29 October 3.215 3,336 7 3,127 202 October 27,456 27,456 -50 November. . . 3,199 3,322 7 3,118 197 November 27,477 27,395 -61 December.... 3,188 3,312 7 3,118 187 December 27.734 27,459 +64 1950—January 3,183 3,307 7 3,117 182 1950—January 27,220 27,139 -320 February. . . . 3,177 3,301 7 3,107 186 February 27,008 27,008 -131 March 3,168 3,293 8 3,107 178 March 27,043 27,124 +116 April 3,151 3,276 8 3,092 176 April 27,062 27,280 +156 P3.127 May 27,022 27.212 -68 June 2>3,O97 June 27,026 27,162 -50 July 27,117 27,171 +9 P Preliminary. 1 Outstanding principal, represented by certificates of deposit. 1 For end-of-year figures, represents change computed on absolute 2 Includes working cash with postmasters, 5 per cent rreesseerrvvee tfiund amounts in first column. and miscellaneous working funds with Treasurer of United States,ac- NOTE.—For discussion of seasonal adjustment factors and for back crued interest on bond investments, and accounts due from llaattee ppiostfigures on comparable basis see BULLETIN for September 1943, pp. masters. 822-826. Because of an apparent change in the seasonal pattern Back figures.—See Banking and Monetary Statistics, p. 519; for around the year-end, adjustment factors have been revised somewhat description, see p. 508 in the same publication. for dates affected, beginning with December 1942. 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 or month Total, all New 140 Other New Other New Other New Other reporting York other reporting York reporting York leading York leading centers City1 centersl centers 2 City centers City 3 cities3 City3 cities 3 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 18.2 9.7 351,602 412,800 24.2 16.1 1 1 9 9 4 4 6 6 — —o n l e d w s s e e ri r e ie s s * 4 Jl,050,021 417,475 527,336 105,210 18.9 10.0 ( 3 4 7 0 4 7 , , 3 94 6 6 5 4 5 4 2 9 2 , , 4 9 1 4 4 4 2 25 5 . . 2 5 1 1 6 6 . . 9 5 1947 1,125,074 405,929 599,639 119.506 21.0 11.9 400,468 598,445 24.1 18.0 1948 1,249,630 449,002 667,934 132.695 23.6 12.9 445,221 660,155 27.2 19.2 1949 1,230,982 452,897 648,905 129,179 24.1 12.4 447,150 639,772 28.2 18.7 1949—June....... 109,067 42,890 55,386 10.792 26.9 12.5 40,617 53,769 29.8 18.7 July.... 98,500 36,467 51,886 10,147 23.7 12.2 37,129 51,276 28.7 18.5 August 99,055 36,070 52,466 10,518 21.9 11.4 34,940 51,421 25.5 17.1 September 101,072 37,191 53,066 10,814 24.1 12.4 36,130 52.364 28.0 18.6 October 101,834 36,334 54,413 11,087 22.4 12.1 36,683 54,488 27.3 18.5 November 99,491 35,249 53,339 10,903 23.4 12.7 34,105 52,336 27.2 19.1 December 118,197 45,781 60,493 11,923 27.7 13.1 45,434 60,428 32.5 20.0 1950—January '106,655 38,962 '56,387 11,306 24.5 12.6 38,133 55,090 28.6 18.9 February '96,246 35,727 '50,556 9,962 24.9 12.3 35,205 49,855 29.3 18.9 March '115,736 43,112 '60,913 11,712 25.7 12.8 41,164 59,113 29.4 19.3 April '•102,538 37,025 '54,649 10,865 24.1 12.5 38,480 54,929 29.7 19.4 May. "•112,085 41,463 '58,828 11,793 25.9 12.7 40,037 57,382 29.7 19.2 June. 119,389 43,781 63,321 12,286 27.0 13.4 42,294 61,607 30.7 20.2 ' Revised. 1 National series for which bank debit figures are available beginning with 1919. 2 Number of centers reduced from 193 to 192 beginning December 1947, when one reporting bank was absorbed by a reporting bank in another city. 3 Weekly reporting member bank series. 4 Statistics for banks in leading cities revised beginning July 3, 1946; for description of revision and for back figures see BULLETIN for June 1947, pp. 692-693, and July 1947, pp. 878-883, respectively; deposits and debits of the new series for first six months of 1946 are estimated. NOTE.—Debits to total deposit accounts, except interbank accounts, have been reported for 334 centers from 1942 through November 1947 and for 333 beginning December 1947; 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 leading cities since 1935. 1027 AUGUST 1950 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CONSOLIDATED CONDITION STATEMENTS FOR BANKS AND THE MONETARY SYSTEM ALL COMMERCIAL AND SAVINGS BANKS, FEDERAL RESERVE BANKS, POSTAL SAVINGS SYSTEM, AND TREASURY CURRENCY FUNDS * [Figures partly estimated except on call dates. In millions of dollars] Assets Liabilities and Capital Bank credit Total assets, net- E•ate Treas- U. S. Government obligations l T ia o b t i a l l - Total Ca a p n i d tal Gold re c n u c r- y Total Lo n a e n t s, m C e o rc m ia - l Federal O se t c h u e - r ca a p n i d tal, c d u e a r p r n o e d s n i c ts y c m o a u i c s n - c ts . , Total and Reserve Other rities net net savings Banks banks 1929—June 29 4,037 2,019 58,642 41 082 741 5,499 216 26 11,819 64,698 55,776 8,922 1933—June30 4,031 2,286 42,148 21,957 10328 8,199 1,998 131 9,863 48,465 42,029 6,436 1939—Dec# 30 17,644 2,963 54,564 ?? 157 9^ 105 19,417 ?,484 1,204 9,302 75,171 68,359 6,812 1941—Dec# 31 ??, 737 3,247 64,653 ?6 605 ?9 049 25,511 ? 254 1 284 8,999 90,637 82,811 7,826 1945—June30 . . 20,213 4,145 153,992 27 948 118041 93,655 21, 792 2,594 8,003 178,350 168,040 10,310 Dec. 31 ?o 065 4,339 167,381 30 387 198 417 101,288 ?4,262 ? 867 8,577 191,785 180,806 10,979 1946—June29 201,270 4,539 163,485 31 570 122 740 95,911 23, 783 3,046 9,175 188,294 176,215 12,079 Dec. 31 20,529 4,562 158,366 35 765 113 110 86,558 23,350 3,202 9,491 183,457 171,657 11,800 1947—june 30 ?1 ,266 4,552 156,297 38 373 107 873 82,679 ?1 872 3,322 10,051 182,115 169,234 12,882 Dec. 31 22,754 4,562 160,832 43 023 107 086 81,199 22,559 3,328 10,723 188,148 175,348 12,800 1948—june 30 93,532 4,565 157,958 4S299 101 451 76,774 ?1 ,366 3,311 11,208 186,055 172,857 13,200 Dec. 31 ?4 244 4,589 160.457 48 341 100 694 74,097 ?3 333 3 264 11,422 189,290 176,121 13,168 1949—June 30 24,466 4,597 156,491 47 148 97 428 74,877 19,343 3,208 11,915 185,554 171,602 13,952 1949—juiy 27 94,500 4,600 156,500 46 500 97 800 76,100 18 500 3 200 12,300 185 700 171,500 14,200 Aug.31 ?4, 600 4,600 158,700 47.200 99 100 78,300 17 500 3 200 12.500 187,900 173,800 14,200 Sept.28 24,600 4,600 159,800 47 900 99 300 78,300 17,900 3,200 12,600 189,000 174,400 14,500 Oct. 26 24,600 4,600 160,300 48,100 99 600 79,100 17,400 3, 100 12,600 189,500 174,900 14,600 Nov. 30 500 4,600 160,700 4Q 000 QQ 100 78,300 17 700 3 100 12,600 189,800 175,300 14,500 Dec. 31. 24,427 4,598 162,681 49 604 100 456 78,433 18,885 3, 138 12,621 191,706 177,313 14,392 1950—Jan. 25*... 24,400 4,600 162,500 49 400 100 400 79,500 17,800 3, 100 12,700 191,600 177,100 14,400 Feb. 21* 24,300 4,600 161,900 49 700 99 300 78,600 17,600 3, 100 12,900 190,800 176,200 14,600 Mar. 29? 24,200 4,600 161,700 50 400 98 000 77,400 17,500 3, 100 13,300 190,600 176,000 14,500 Apr 26? 9/1 200 4,600 162,000 SO600 97 900 77,100 17,600 3 100 13 500 190 800 176 300 14 500 May 31* 94, 200 4,600 162,600 S1 000 98 200 77,700 17 400 3 100 13,500 191,500 176,900 14,500 June28* 24,200 4,600 164,300 51 800 98 900 77,600 18,200 3 100 13,600 193,200 178,200 15,000 Deposits and Currency U. S. Government balances Deposits adjusted and currency r)ate Total d F e o b p n r a o e e n i s t k g it n s, T c u r a e r s a y h s- A s m b a t e a v a c r n n i c o n d k i m g a s s l - R F B e e a A d s n e e t r k r v a s e l Total d D e e p m os a i n ts d 2 Total m b C T e a o i r n m m c k i e a s - l dep M s b o a a s v u n i i t t k s n u s g 3 a 4 s l S S P a y o v s s i t n t e a m g l s o b r u C e a t n u n s c i r k d - y s e 1929—June 29 .. 55 776 365 204 381 36 54,790 22 540 28 611 19,557 8,905 149 3,639 1933—June 30 4? 029 50 264 852 35 40,828 14 411 ?1 656 10,849 9,621 1,186 4,761 1 1 9 9 4 3 1 9— — D D e e c c % . 3 3 0 1 6 8 8 2 3 8 5 1 9 1 1 1 , , 2 4 1 9 7 8 2 2 , ,2 4 1 0 5 9 1,8 8 9 46 5 6 8 3 6 4 7 6 7 3 6 , , 2 3 5 3 3 6 3 ?9 8 9 79 9 3 2 ? 2 7 7 0 7 5 2 9 9 1 15 5 , , 8 2 8 5 4 8 1 1 0 0 , , 5 5 3 2 2 3 1 1 , , 3 2 1 7 3 8 9 6 , , 6 4 1 0 5 1 1945—June 30 168 040 2,378 2,279 24,381 599 138,403 69 053 44 253 27,170 14,426 2,657 25,097 Dec. 31 180 806 2,141 2,287 ?4,608 977 150,793 7S851 48 452 30,135 15,385 2,932 26,490 1946—June 29 176 215 1,894 2,251 13,416 833 157,821 79 476 51 829 32,429 16,281 3,119 26,516 Dec. 31. 171 657 1,885 2,272 3,103 393 164,004 83 314 S3960 33,808 16,869 3,283 26,730 1947—June 30 169 234 1,657 1,314 i,367 756 164,140 82 186 55,655 34,835 17,428 3,392 26,299 Dec. 31 175 348 1,682 1,336 i,452 870 170,008 87 121 56 411 35,249 17,746 3,416 26,476 1948—June 30 17? 857 1,727 1,327 ?,180 t,928 165,695 8? 697 S7,360 35,788 18,194 3,378 25 638 Dec. 31 176 121 2,103 1,325 ?,451 1,123 169,119 520 57,S20 35,804 18,387 3.329 26,079 1949—June 30 171 602 1,927 1,307 2,304 438 165,626 81,877 58 483 36,292 18,932 3,259 25,266 1949—July 27 . . 171 500 1,900 1,300 1,500 400 166,300 83,100 58,400 36,200 19,000 3,300 24,900 Aug. 31 173,800 1,900 1,300 3,100 600 166,900 83,400 S8,400 36,100 19,000 3,200 25 100 Sept 28 174 400 1,900 1,300 3,700 1,200 166,300 83,100 58,400 36,100 19,100 3,200 24,900 Oct. 26 174,900 2,000 1,300 3,600 400 167,700 84,300 58,400 36,100 19,100 3,200 24,900 Nov 30 175,300 2,100 1,300 3,200 500 168,100 85,000 58,000 35,800 19,100 3,200 25,100 Dec. 31 177,313 2,150 1,312 3,249 821 169,781 85,750 58,616 36,146 19,273 3,197 25,415 1950—Jan. 25* 177,100 2,200 1,300 3,300 500 169,700 86,400 58,700 36,100 19,400 3,200 24,500 Feb. 21* 176,200 2,200 1,300 4,200 400 168,200 84,500 59,000 36,300 19,500 3,200 24,700 Mar 29? 176,000 2,300 1,300 4,300 1,000 167,100 83,300 SO,300 36 500 19 700 3 200 24 600 Apr. 26* 176,300 2,400 1,300 3,200 800 168,500 84,500 59,500 36,600 19,700 3,200 24,600 May 31* 176,900 2,400 1,300 3,200 600 169,500 85,300 59,500 36,600 19,800 3,100 24,700 June 28* ... . . 178,200 2,500 1,300 3,800 900 169,700 85,400 59,700 36,700 19,900 3,100 24,600 * Preliminary. 1 Treasury funds included are the gold account, Treasury currency account, and Exchange Stabilization Fund. 2 Demand deposits, other than interbank and U. S. Government, less cash items reported as in process of collection. 3 Excludes interbank time deposits; United States Treasurer's time deposits, open account; and deposits of Postal Savings System in banks. 4 Prior to June 30, 1947, includes a relatively small amount of demand deposits. NOTE.—For description of statement and back figures, see BULLETIN for January 1948, pp. 24-32. The composition of a few items differs slightly from the description in the BULLETIN article; stock of Federal Reserve Banks held by member banks is included in "Other securities" and in "Capital accounts," and balances of the Postal Savings System and the Exchange Stabilization Fund with the U. S. Treasury are netted against miscellaneous accounts instead of against U. S. Government deposits and Treasury cash. Except on call dates, figures are rounded to nearest 100 million dollars and may not add to the totals. See Banking and Monetary Statistics, Table 9, pp. 34-35, for back figures for deposits and currency. 1028 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ALL BANKS IN THE UNITED STATES, BY CLASSES * PRINCIPAL ASSETS AND LIABILITIES, AND NUMBER OF BANKS [Figures partly estimated except on call dates. Amounts in millions of dollars] Loans and investments Deposits Investments Other Class of bank Cash Total Number and date Total Loans G U ov . e S rn . - Other assets x Total i b I a n n te k r - l a c c a c p o i u ta n l ts ba o n f ks De- Total ment secu- Time obliga- rities tions All banks: 1939—Dec. 30 50,884 22,165 28,719 19,417 9,302 23,292 68,242 9,874 32,516 25,852 8,194 15,035 1941—Dec. 31 61,126 26,615 34,511 25,511 8,999 27,344 81,816 10,982 44,355 26,479 8,414 14,826 1942—Dec. 31 78,147 23,916 54,231 45,951 8,280 28,701 99,803 11,308 61,437 27,058 8,566 14,682 1943—Dec. 31 96,966 23,601 73,365 65,932 7,433 28,475 117,661 11,003 75,577 31,081 8,996 14,579 1944—Dec. 30 119,461 26,015 93,446 85,885 7,561 30,790 141,448 12,235 91,663 37,551 9,643 14,535 1945—Dec. 31 140,227 30,362 109,865 101,288 8,577 35,415 165,612 14,065 105,935 45,613 10,542 14,553 1946—Dec. 31 131,698 35,648 96,050 86,558 9,491 35,041 155,902 12,656 92,462 50,784 11,360 14,585 1947—Dec. 312 134,924 43,002 91,923 81,199 10,723 38,388 161,865 13,033 95,727 53,105 11,948 14,714 1948—Dec. 31 133,693 48,174 85,519 74,097 11,422 39,474 161,248 12,269 94,671 54,308 12,479 14,703 1949—June 30 133,868 47,076 86,792 74,877 11,915 34,966 156,470 10,938 90,145 55,386 12,845 14,680 Dec. 31 140,598 49,544 91,054 78,433 12,621 36,522 164,467 12,710 96,156 55,601 13,088 14,687 1950—Jan. 25 P 141,820 49,610 92,210 79,490 12,720 33,580 162,510 12,050 94,760 55,700 13,110 14,689 Feb. 21P 141,320 49,890 91,430 78,570 12,860 33,710 161,970 11,690 94,320 55,960 13,190 14,683 Mar. 29P 141,210 50,520 90,690 77,370 13,320 32,320 160,020 11,230 92,500 56,290 13,270 14,682 Apr. 26*> 141,390 50,770 90,620 77,140 13,480 32,770 160,710 11,240 92,990 56,480 13,270 14,684 May 31P 142,360 51,180 91,180 77,710 13,470 33,450 162,090 11,130 94,410 56,550 13,450 14,674 June 28P 143,380 52,160 91,220 77,590 13,630 33,300 162,940 11,300 94,880 56,760 13,600 14,675 All commercial banks: 1939—Dec. 30 40,668 17,238 23,430 16,316 7,114 22.474 57,718 9,874 32,513 15,331 6,885 14,484 1941—Dec. 31 50,746 21,714 29,032 21,808 7,225 26,551 71,283 10,982 44,349 15,952 7,173 14,278 1942—Dec. 31 67,393 19,221 48,172 41,379 6,793 28,039 89,135 11,308 61,431 16,395 7,330 14,136 1943—Dec. 31 85,095 19,117 65,978 59,842 6,136 27,677 105,923 11,003 75,569 19,350 7,719 14,034 1944—Dec. 30 105,530 21,644 83,886 77,557 6,329 30,206 128,072 12,235 91,653 24,184 8,265 13,992 1945—Dec. 31.. 124,019 26,083 97,936 90,606 7,331 34,806 150,227 14,065 105,921 30,241 8,950 14,011 1946—Dec. 31 113,993 31,122 82,871 74,780 8,091 34,223 139,033 12,656 92,446 33,930 9,577 14,044 1947—Dec. 31 2 116,284 38,057 78,226 69,221 9,006 37,502 144,103 13,032 95,711 35,360 10,059 14,181 1948—Dec. 31 114,298 42,488 71,811 62,622 9,189 38,596 142,843 12,269 94,654 35,921 10,480 14,171 1949—June 30 113,773 41,025 72,748 63,220 9,528 34,166 137,520 10,938 90,128 36,455 10,780 14,150 Dec. 31 120,197 42,965 77,232 67,005 10,227 35,650 145,174 12,709 96,136 36,328 10,967 14,156 1950—Jam 25*> 121,230 42,940 78,290 67,980 10,310 32,750 143,080 12,050 94,740 36,290 10,980 14,158 Feb. 21* 120,600 43,130 77,470 67,070 10,400 32,870 142,440 11,690 94,300 36,450 11,020 14,152 Mar. 29P 120,320 43,650 76,670 65,820 10,850 31,460 140,340 11,230 92,480 36,630 11,080 14,151 Apr. 26P 120,380 43,800 76,580 65,570 11,010 31,970 140,960 11,240 92,970 36,750 11,090 14,153 May 31*> 121,220 44,080 77,140 66,140 11,000 32,680 142,280 11,130 94,390 36,760 11,250 14,143 June 28? 122,140 44,950 77,190 66,030 11,160 32,470 143,000 11,300 94,860 36,840 11,380 14,145 All member banks: 1939—Dec. 30 33,941 13,962 19,979 14,328 5,651 19,782 49,340 9,410 28,231 11,699 5,522 6,362 1941—Dec. 31 43,521 18,021 25,500 19,539 5,961 23,123 61,717 10,525 38,846 12,347 5,886 6,619 1942—Dec. 31 59,263 16,088 43,175 37,546 5,629 24,280 78,277 11,000 54,523 12,754 6,101 6,679 1943—Dec. 31 74,258 16,288 57,970 52,948 5,022 23,790 92,262 10,555 66,438 15,268 4,475 6,738 1944—Dec. 30 91,569 18,676 72,893 67,685 5,208 25,860 110,917 11,884 79,774 19,259 6,968 6,814 1945—Dec. 31 107,183 22,775 84,408 78,338 6,070 29,845 129,670 13,640 91,820 24,210 7,589 6,884 1946—Dec. 31 96,362 26,696 69,666 63,042 6,625 29,587 118,170 12,060 78,920 27,190 8,095 6,900 1947—Dec. 31 97,846 32,628 65,218 57,914 7,304 32,845 122,528 12,403 81,785 28,340 8,464 6,923 1948—Dec. 31 95,616 36,060 59,557 52,154 7,403 34,203 121,362 11,641 80,881 28,840 8,801 6,918 1949—June 30 95,315 34,456 60,859 53,132 7,727 30,423 116,980 10,374 77,342 29,264 9,022 6,903 Dec. 31 101,528 36,230 65,297 56,883 8,414 31,317 123,885 12,097 82,628 29,160 9,174 6,892 1950—Jan. 25 P 102,418 36,158 66,260 57,754 8,506 28,675 121,908 11,435 81,363 29,110 9,179 6,892 Feb. 21P 101,709 36,286 65,423 56,838 8,585 28,843 121,253 11,096 80,917 29,240 9,210 6,891 Mar. 29P 101,400 36,732 64,668 55,669 8,999 27,533 119,264 10,664 79,230 29,370 9,260 6,889 Apr. 26P 101,428 36,842 64,586 55,441 9,145 28,039 119,851 10,683 79,704 29,464 9,272 6,891 May 31* 102,179 37,070 65,109 55,988 9,121 28,692 121,076 10,587 80,995 29,494 9,399 6,887 June 28P 103,060 37,818 65,242 55,977 9,265 28,532 121,793 10,751 81,457 29,585 9,524 6,885 All mutual savings banks: 1939—Dec. 30 10,216 4,927 5,289 3,101 2,188 818 10,524 3 10,521 1,309 551 1941—Dec 31 10 379 4 901 5 478 3 704 1 774 793 10 533 6 10,527 1,241 548 1942—Dec. 31 .. 10,754 4,695 6,059 4,572 1,487 663 10,668 6 10,662 1,236 546 1943—Dec 31 11,871 4 484 7 387 6 090 1 297 797 11 738 8 11,730 1,276 545 1944—Dec. 30 13,931 4,370 9,560 8,328 1,232 584 13,376 10 13,366 1,378 543 1945—Dec 31 16,208 4,279 11,928 10 682 1 246 609 15 385 14 15,371 1,592 542 1946—Dec. 31 17,704 4,526 13,179 11,778 1,400 818 16,869 i 16 16,853 1,784 541 1947—Dec. 31 2 18,641 4,944 13,696 11,978 1,718 886 17,763 1 17 17,745 1,889 533 1948—Dec. 31 19,395 5,686 13,709 11,476 2,233 878 18,405 1 17 18,387 1,999 532 1949—June 30 20,094 6,050 14,044 11,657 2,387 800 18,949 1 17 18,932 2,065 530 Dec 31 20 400 6 578 13 822 11 428 2 394 873 19 293 20 19,273 2,122 531 1950—Jan 25? 20,590 6,670 13 920 11 510 2 410 830 19,430 20 19,410 2,130 531 Feb 21P 20 720 6 760 13 960 11 500 2 460 840 19 530 20 19,510 2,170 531 Mar 29^ 20 890 6 870 14 020 11 550 2 470 860 19 680 20 19,660 2,190 531 Apr 26p 21 010 6,970 14 040 11 570 2 470 800 19 750 20 19,730 2,180 531 May 3W 21,140 7,100 14,040 11,570 2,470 770 19,810 20 19,790 2,200 531 June 28P 21,240 7,210 14,030 11,560 2,470 830 19,940 20 19,920 2,220 530 P Preliminary. * "All banks" comprise "all commercial banks" and "all mutual savings banks." "All commercial banks" comprise "all nonmember commercial banks" and "all member banks" with exception of three mutual savings banks that became members in 1941. Stock savings banks and nondeposit trust companies are included with "commercial" banks. Number of banks includes a few noninsured banks for which asset and liability data are not available. Comparability of figures for classes of banks is affected somewhat by changes in Federal Reserve membership, insurance status, and the reserve classifications of cities and individual banks, and by mergers, etc. 1 Beginning June 30, 1942, excludes reciprocal balances, which on Dec. 31, 1942, aggregated 513 million dollars at all member banks and 525 million at all insured commercial banks. For other footnotes see following two pages. AUGUST 1950 1029 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ALL BANKS IN THE UNITED STATES, BY CLASSES *—Continued PRINCIPAL ASSETS AND LIABILITIES, AND NUMBER OF BANKS—Continued [Figures partly estimated except on call dates. Amounts in millions of dollars] Loans and investments Depc>sits Investments Other Cla a s n s d o d f a b te ank Total Loans G U ov . e S r . n- Other as C s a e s ts h * Total i b I a n n te k r - i a c c T a c o p o t i u t a a n l l ts N b u a o m n f k b s er Total ment secu- De- Time obliga- rities mand tions Central reserve city member banks: New York City: 1939—Dec 3n Q 339 3,296 6,043 4,772 1,272 6,703 14,509 4,238 Q 533 736 1 592 36 1941—Dec. 31 . . 19,896 4,072 8,823 7,265 1,559 6 637 17,932 4,207 1? 917 807 1,648 36 1942—Dec. 31 17,957 4,116 13,841 17,547 1,294 5 864 22,078 3,945 17 399 734 1,727 37 1943—Dec 31 19,994 4,428 1S,565 14,563 1,002 S 197 23,256 ,680 18 729 847 1 862 37 1944—Dec. 30 24,003 5,760 18,243 17,179 1,066 4,921 26,773 4,041 21,730 1,002 1,966 37 1945—Dec 31 96,143 7,334 18,809 17,574 1.235 6,439 30,121 4,657 94,227 1,236 2 120 37 1946—D ec 31 ... 90 ,834 6,368 14,465 13,308 L ,158 6,238 24,723 4,246 19,028 1,449 2,205 37 1947—Dec. 31 ?0,393 7,179 n,214 11,972 L,242 7,?,61 25,216 4,464 19 307 1,445 2,259 37 1948—Dec. 31 18,759 8,048 10,712 9,649 L.063 7,758 24,024 4,213 18,131 1,680 2,306 35 1949—June 30 19,103 7,689 11,413 10,278 L.135 7,109 23,619 3,920 18,004 1,695 2,340 35 Dec 31 19 583 7,550 1?,033 10,746 L ,287 6,985 23,983 4,192 18,139 1,651 2 312 25 1950—Jan 25P. .. 19,672 7,485 19,187 10,797 L,390 6,004 22,995 3,898 17,510 1,587 2 312 25 Feb. 21P 19,246 7,495 11,751 10,357 L.394 6,373 22,868 3,881 17,412 1,575 2,318 25 Mar 29P 19,135 7,534 11,601 10,004 1,597 6,021 22,211 3,704 16,895 1,612 2 311 25 Apr. 26P 19,206 7,645 11,561 9,963 L.598 6 060 22,380 ,818 16,956 1,606 2 320 25 May 31P 19,243 7,607 11,636 10,153 1,483 6,382 22,702 3,826 17,230 1,646 2,344 25 June 28? 19,770 7,924 11,846 10,334 L.512 6,072 23,011 3,941 17,420 1,650 2,336 25 Chicago: 1939—Dec. 30.. 2,105 569 1,536 1,203 333 1,446 3,330 888 1,947 495 250 14 1941—Dec. 31 ?,760 954 1,806 1,430 376 1,566 4,057 1,035 ?,546 476 288 13 1942—Dec. 31 3,973 832 3,141 2,789 352 1,352 5,040 1,117 3,468 455 304 13 1 1 9 9 4 4 4 3 — — D D e ec c . . 3 3 1 0 4 S , , 5 4 5 4 4 3 1 1, ,1 0 8 0 4 4 4 , , 5 2 5 5 0 8 3 , , 2 9 3 1 8 3 3 34 1 5 2 1 1 , , 2 3 8 7 3 8 6 5 , , 4 5 6 2 8 3 1,1 9 4 8 8 5 4 4 , , 0 7 2 0 9 0 5 62 0 0 8 3 3 2 54 6 1 13 3 1945—Dec 31 s,931 1,333 4,598 4,213 385 1,489 7,046 1,312 s,015 719 377 12 1946—Dec> 31...... 4,765 1,499 3,266 ?,912 355 1,545 5,905 1,153 ,922 829 404 14 1947—Dec. 31 5,088 1,801 3,287 2,890 397 1,739 6,402 1,217 4,273 913 426 14 1948—Dec 31 . .. 4,799 1,783 ,016 ?,633 383 ,932 6,293 1,064 4,227 1,001 444 13 1949—june 30 4,841 1,537 ,303 ?,888 415 1,702 6,087 1,008 4,020 1,059 462 13 Dec 31 s,424 1 618 3 806 3,324 482 1,850 6,810 1,191 4,535 1,083 470 13 1950—Jan. 25P s,412 1,579 3,833 3,345 488 1,695 6,600 1,127 4,391 1,082 466 13 Feb. 21? 5,282 1,554 3,728 3,223 505 1,624 6,438 1,077 4,270 1,091 467 13 A M p a r r . 2 2 9 6 P ? .... s s , , 0 1 6 0 3 3 1 1 , , 5 5 5 4 4 8 3 3 , , 5 5 0 5 9 5 ? ?, , 9 99 8 2 0 5 5 2 63 9 1 1 , , 4 6 8 4 6 2 6 6 , , 0 2 0 4 3 3 1 1 , , 0 0 8 2 6 6 4 , , 8 1 6 3 1 0 1 1 , ,0 0 8 5 7 6 4 47 7 1 0 1 13 3 May 31P 5,217 1,536 3,681 3,119 562 1,658 6,392 1,044 4,256 1,092 478 13 June28P 5,269 1,550 3,719 3,158 561 1,664 6,445 1,038 4,310 1,097 480 13 Reserve city member banks: 1939—Dec. 30 1^,272 s 329 6,944 s,194 1,749 6,785 17,741 3,686 9,439 4,616 1 828 346 1941—Dec. 31 IS,347 7,105 8,243 6,467 1,776 8,518 22,313 4,460 n,047 4,806 1,967 351 1942—Dec. 31 20,915 6,102 14,813 13,038 1,775 9,426 28,700 4,957 18,747 4,995 2,028 354 1943—Dec. 31 97,521 6,201 ?1,321 19,682 1,639 9,327 35,070 4,874 94,086 6,109 2,135 357 1944—Dec. 30 S3,603 ,822 96 ,781 95 ,042 1,739 10,238 41,804 s,524 98 ,525 7,755 2,327 356 1945—Dec. 31 40,108 8,514 31,594 29,552 2,042 11,286 49,085 6,448 32,877 9,760 2,566 359 1946—Dec. 31 ^ ,351 10,825 94,527 ?9,250 2,276 11,654 44,477 s,570 98,049 10,858 2,728 355 1947—Dec 31 36,040 13 449 97 ,591 90 ,196 2,396 13,066 46,467 s,649 9Q ,395 11,423 2 844 353 1948—Dec. 31. 3S,332 14,285 91,047 18,594 2,453 ,317 45,943 s,400 99 ,153 11,391 2,928 335 1949—June 30 35,034 13,261 91 ,772 1Q,076 2,696 11,618 43,852 4,665 97 ,560 11,627 3,005 336 Dec. 31 38,301 14,370 23,931 20,951 2,980 12,168 47,559 5,713 30,182 11,664 3,087 341 1950—Jan. 25P. . 38,802 14,310 24,492 21,500 2,992 11,141 46,974 5,430 29,882 11,662 3,074 341 Feb. 21P 38,406 14,302 24,104 21,082 3,022 11,119 46,510 5,206 29,632 11,672 3,079 338 Mar. 29P . .. 38,340 14,547 93,793 90,680 3,113 10,576 45,845 4,974 ?Q,174 11,697 3,116 338 Apr. 26P 38,201 14,470 93 ,731 ?0,546 3,185 10,894 45,987 4,968 ?9,292 11,727 3,123 338 May 31P . .. 38,556 14,653 93 ,903 ?o,672 3,231 11 107 46,462 4,860 ?9,888 11,714 3,146 337 June 28P 38,904 14,883 24,021 20,695 3,326 11,325 46,929 4,924 30,143 11,862 3,269 336 Country memt>er banks: 1939—Dec. 30 10,224 4,768 5,456 3,159 2,297 4,848 13,762 598 7,312 5,852 1,851 5,966 1941—Dec. 31 ,518 ,890 6,628 4,377 2,250 6,402 17,415 822 10,335 6,258 1,982 6,219 1942—Dec. 31 1169,419 ss,038 11,380 9,172 2,208 7,638 22,459 980 14,909 6,569 2,042 6,275 1943—Dec. 31 22,188 4,654 17,534 15,465 2,069 7,983 28,414 1,015 19,594 7,804 2,153 6,331 1944—Dec. 30 ... 98,520 4,910 93,610 91,552 2,058 Q,323 35,871 1,171 94,818 9,882 2,321 6 408 1945—Dec. 31 35,002 5,596 29,407 26,999 2,408 10,632 43,418 1,223 29,700 12,494 2,525 6,476 1946—Dec. 31 35,412 8,004 27,408 24,572 2,836 10,151 43,066 1,091 27,921 14,053 2,757 6,494 1947—Dec. 31 . . 36,324 10,199 96,125 99,857 3,268 10,778 44,443 1 073 98,810 14,560 2,934 6 519 1948—Dec. 31 36,726 11,945 24,782 21,278 3,504 11,196 45,102 964 29,370 14,768 3,123 6,535 1949—June 30 36,338 11.968 24,370 20,889 3,481 9,994 43,422 781 27,758 14,883 3,215 6,519 Dec. 31 38,219 12,692 25,527 21,862 3,665 10,314 45,534 1,001 29,771 14,762 3,305 6,513 1950—Jan. 25P 38,532 12,784 25,748 22,112 3,636 9,835 45,339 980 29,580 14,779 3,327 6,513 Feb. 21P 38,775 12,935 25,840 22,176 3,664 9,727 45,437 932 29,603 14,902 3,346 6,515 Mar. 29P 38,862 13,097 25,765 22,005 3,760 9,450 45,205 900 29,300 15,005 3,363 6,513 Apr. 26P 38,918 13,179 25,739 21.940 3,799 9,443 45,241 871 29,326 15,044 3,358 6,515 May 31P. . .... 39,163 13,274 25,889 22,044 3,845 9,545 45,520 857 29,621 15,042 3,431 6,512 June 28P 39,117 13,461 25,656 21,790 3,866 9,471 45,408 848 29,584 14,976 3,439 6,511 2 December 31, 1947 figures are consistent (except that they exclude possessions) with the revised all bank series announced in November 1947 by the Federal bank supervisory agencies, but are not entirely comparable with prior figures shown above; a net of 115 noninsured nonmember commercial banks with total loans and investments of approximately 110 million dollars was added, and 8 banks with total loans and investments of 34 million were transferred from noninsured mutual savings to nonmember commercial banks. For other footnotes see preceding and opposite page. 1030 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 PRINCIPAL ASSETS AND LIABILITIES, AND NUMBER OF BANKS—Continued [Amounts in millions of dollars] Loans and investments Deposits Investments Other Class of bank Cash Total Number and date Total Loans Total G o U m o b v l . e i e g n S r a t n . - - O s ri e t t c h ie u e s - r assets x Total b I a n n te k r - i m D a e n - d Time a c c a c p o i u ta n l ts ba o n f ks tions All insured commercial banks: 1941—Dec. 31 49,290 21,259 28,031 21,046 6,984 25,788 69,411 10,654 43,059 15,699 6,844 13,426 1945—Dec. 31 121,809 25,765 96,043 88,912 7,131 34,292 147,775 13,883 104,015 29,876 8,671 13,297 1946—Dec. 31 112,178 30,733 81,445 73,554 7,891 33,694 136,990 12,320 91,144 33,526 9,286 13,354 1947—Dec. 31 114,274 37,583 76,691 67,941 8,750 36,926 141,851 12,670 94,300 34,882 9,734 13,398 1948—Dec. 31 112,286 41,968 70,318 61,388 8,929 38,087 140,642 11,900 93,300 35,441 10,158 13,413 1949—June 30 111,746 40,524 71,222 61,970 9,252 33,720 135,375 10,578 88,830 35,966 10,452 13,417 Dec. 31 118,278 42,485 75,793 65,820 9,974 35,207 143,138 12,368 94,914 35,856 10,645 13,429 National member banks: 1941—Dec. 31 27,571 11,725 15,845 12,039 3,806 14,977 39,458 6,786 24,350 8,322 3,640 5,117 1945—Dec. 31 69,312 13,925 55,387 51,250 4,137 20,114 84,939 9,229 59,486 16,224 4,644 5,017 1946—Dec. 31 63,723 17,272 46,451 41,658 4,793 20,012 78,775 8,169 52,194 18,412 5,138 5,007 1947—Dec. 31 65,280 21,428 43,852 38,674 5,178 22,024 82,023 8,410 54,335 19,278 5,409 5,005 1948—Dec. 31 63,845 23,752 40,093 34,852 5,241 22,974 81,407 7,842 54,020 19,545 5,657 4,991 1949—June 30 63,517 22,505 41,012 35,487 5,525 20,324 78,219 6,945 51,420 19,854 5,814 4,987 Dec. 31 67,943 23,853 44,090 38,161 5,930 20,995 83,113 8,278 55,034 19,801 5,920 4,975 State member banks: 1941—Dec. 31 15,950 6,295 9,654 7,500 2,155 8,145 22,259 3,739 14,495 4,025 2,246 1,502 1945—Dec. 31 37,871 8,850 29,021 27,089 1,933 9,731 44,730 4,411 32,334 7,986 2,945 1,867 1946—Dec. 31 32,639 9,424 23,216 21,384 1,832 9,575 39,395 3,890 26,726 8,779 2,957 1,893 1947—Dec. 31 32,566 11,200 21,365 19,240 2,125 10,822 40,505 3,993 27,449 9,062 3,055 1,918 1948—Dec. 31 31,771 12,308 19,463 17,301 2,161 11,228 39,955 3,799 26,862 9,295 ,144 1,927 1949—June 30 31,798 11,951 19,847 17,645 2,202 10,099 38,761 3,429 25,922 9,410 3• ,208 1,916 Dec. 31 33,585 12,378 21,207 18,722 2,484 10,322 40,772 3,819 27,594 9,359 3,254 1,917 Insured nonmember commercial banks: 1941—Dec. 31 5,776 3,241 2,535 1,509 1,025 2,668 7,702 129 4,213 3,360 959 6,810 1945—Dec. 31 14,639 2,992 11,647 10,584 1,063 4,448 18,119 244 12,196 5,680 1,083 6,416 1946—Dec. 31 15,831 4,040 11,791 10,524 1,268 4,109 18,836 260 12,225 6,351 1,193 6,457 1947—Dec. 31 16,444 4,958 11,486 10,039 1,448 4,083 19,340 266 12,515 6,558 i ,271 6,478 1948—Dec. 31 16,685 5,911 10,774 9,246 1,528 3,887 19,296 259 12,419 6,618 1,358 6,498 1949—June 30 16,447 6,071 10,376 8,849 1,527 3,299 18,410 204 11,488 6,718 1,431 6,517 Dec. 31 16,766 6,258 10,508 8,947 1,561 3,892 19,269 272 12,285 6,712 1,473 6,540 Noninsured nonmember commercial banks: 1941—Dec. 31 1,457 455 1,002 761 241 763 1,872 329 1,291 253 329 852 1945—Dec. 31 , 2,211 318 1,893 ,693 200 514 2,452 181 1,905 365 279 714 1946—Dec. 31 1,815 389 1,426 ,226 200 530 2,043 336 1,302 404 290 690 1947—Dec. 31 2 2,009 474 1,535 ,280 255 576 2,251 363 1,411 478 325 783 1948—Dec. 31 2,013 520 1,493 ,234 259 509 2,201 368 1,353 479 322 758 1949—June 30 2,027 502 1,526 ,250 276 446 2,146 359 1,298 488 329 733 Dec. 31 1,919 481 1,438 1,185 253 442 2,036 341 1,223 472 321 727 All nonmember commercial banks: 1941—Dec. 31 , 7,233 3,696 3,536 2,270 1,266 3,431 9,574 457 5,504 3,613 1,288 7,662 1945—Dec. 31 16,849 3,310 13,539 12,277 1,262 4,962 20,571 425 14,101 6,045 :,362 130 1 19 9 4 4 7 6 — — D D e e c c . . 3 3 1 1 2 1 1 8 7, , 6 4 4 5 6 4 4 5 , , 4 43 2 2 9 1 1 3 3, , 0 2 2 1 1 7 1 1 1 1 , , 7 3 4 1 9 8 1 1 , , 4 7 6 0 8 3 4 4 , , 6 6 3 5 9 9 2 2 1 0 , , 5 8 9 7 1 9 5 6 9 2 7 9 1 1 3 3 , , 5 9 2 2 6 6 6 7 , , 7 0 5 3 6 6 •1L , , 4 5 8 9 3 6 7 7 , , 1 26 4 1 7 1948—Dec. 31 18,698 6,431 12,267 10,479 1,788 4,396 21,497 628 13,772 7,097 :,680 7,256 1949—June 30 18,474 6,573 11,901 10,098 1,803 3,745 20,556 563 12,786 7,207 :,760 7,250 Dec. 31 18,686 6,739 11,947 10,132 1,814 4,334 21,305 613 13,508 7,184 1L.794 7,267 Insured mutual saving* banks: 1941—Dec. 31 1,693 642 1,050 629 421 151 1,789 1,789 164 52 1945—Dec. 31 10,846 3,081 7,765 7,160 606 429 10,363 12 10,351 ,034 192 1946—Dec. 31 11,891 3,250 8,641 7,946 695 612 11,428 1 13 11,415 L.173 191 1947—Dec. 31 12,683 3,560 9,123 8,165 958 675 12,207 1 14 12,192 ,252 194 1948—Dec. 31 13,312 4,109 9,202 7,795 ,407 684 12,772 1 14 12,757 L.334 193 1949—June 30 13,880 4,397 9,484 7,940 ,544 629 13,241 1 13 13,226 ,381 191 Dec. 31 14,209 4,814 9,394 7,832 1,562 682 13,592 16 13,575 1,420 192 Noninsured mutual savings banks: 1941—Dec. 31 8,687 4,259 4,428 3,075 1,353 642 8,744 6 8,738 L.O77 496 1945—Dec. 31 5,361 1,198 4,163 3,522 641 180 5,022 2 5,020 558 350 1946—Dec. 31 5,813 1,275 4,538 3,833 705 206 5,442 3 5,439 611 350 1947—Dec. 312 5,957 1,384 4,573 3,813 760 211 5,556 3 5,553 637 339 1948—Dec. 31 6,083 1,577 4,506 3,680 826 194 5,633 3 5,631 665 339 1949—June 30 6,214 1,654 4,560 3,718 843 171 ,709 4 5,705 683 339 Dec. 31 , 6,192 1,764 4,428 3,596 832 191 5,702 3 5,699 702 339 For footnotes see preceding two pages. Back figures.—See Banking and Monetary Statistics, Tables 1-7, pp. 16-23; for description, see pp. 5-15 in the same publication. For revisions in series prior to June 30, 1947, see BULLETIN for July 1947, pp. 870-871. AUGUST 1950 1031 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] LoansI Investments Loans for U. S. Government obligations Com- purchasing Obli- Cla c s a s l a l o n d d f a b te ank i m T n lo a v o e n a e n t n d a s t s t l s - Totall o c m c p i l i i n u n e a e g d - r l n , - - - \ t c g u a u r r l l i - - - o 3 s T r r e o o c c k a u - r r r it y i i e n s g R t o e a a e s t n a - e l s C l u o o m a n n e - s r O lo th an er s Total Total C c e a r t t e i D f s i- irect G a u n a - r- S p t a t g i o o a n o a l t f d i n - e t s s - O s ri e t t h c ie e u s r mar- 1O Bills of in- Notes Bonds teed ical ket and oth- debt- subpa- deal- ers ed- diviper ers ness sions All insured commercial banks: 1941—Dec. 31.. 49,290 21,259 9 214 ,450 614 662 773 4, 545 28,031 21,046 988 3, 159 12,797 4,102 3 651 •5,333 1945—Dec. 31. .121,809 25,765 9 461 ,3143,164 3,606 \.677 2 361 1,181 96,043 88,912 2,455 19,071 16,045 51,321 22 3 873 3,258 1946—Dec. 31. .112,178 30,733 14 016 ,3581,517 ,6097 103 [.031 1,098 81,445 73,554 1,271 12 288 6,780 53,200 154 298 3,592 1947—Dec. 31.. 114,274 37,583 18 012 ,610 823 ,1909 266 5 654 1,028 76,691 67,941 2,124 7 552 5,918 52,334 145 129 3,621 1948—Dec. 31.. 112 286 41,968 18 761 2,7751,336 939 10,6666 804 1,095 70 318 61,388 2,821 10,065 3,394 45,100 85 509 3,420 1949—June 30. . 111 746 40 524 16 292 2,7341,972 901 10,887y 170 1,022 71 222 61,970 2,846 10 437 2,045 46,636 65 763 3,489 Dec. 31.. 118 278 42 485 16 935 2,9631,749 855 11,4058 005 1,121 75 793 65,820 3,692 12 479 5,810 43,833 66 400 3,574 Member banks, total: 1941—Dec. 31. . 43 521 18 021 8 671 972 594 598 3 494 3,692 25 500 19 539 971 3 007 11 729 3,8323 090 2,871 1945—Dec. 31. .107 183 22 775 8 949 855 3,1333,3783 455 1 900 1,104 84 408 78 338 2,275 16 985 14 271 44 792 163 254 2,815 1946—Dec. 31.. 96 362 26 696 13 154 884 1,506 1,4675 358 3 308 1,020 69 666 63 042 1,167 10 043 5 602 46 219 113 548 3,077 1947—Dec. 31. . 97 846 32 628 16 962 1,046 811 1,065y 1304 662 952 65 218 57 914 1,987 5 816 4 815 45 286 104 199 3,105 1948—Dec. 31.. 95 616 36 060 17 631 1,8001,324 834 8 244 5585 1,006 59 556 52 154 2,588 7 999 2 800 38 761 54 480 2,922 1949—June 30. . 95 315 34 456 15 213 1,7041,958 803 8 383 5 859 935 60 859 53 132 2,651 8 469 1 639 40 369 44 710 3,016 Dec. 31.. 101 528 36 230 15 857 1,9451,737 758 8 834 6 551 1,034 65 297 56 883 3,389 10 409 5 085 37 996 45 274 3,140 1950—Apr. 24..101 521 36 785 64 736 55 575 5 954 3,207 New York City:* 1941—Dec. 31. . 12 896 4 072 2 807 8 412 169 123 554 8 823 7 265 311 1 623 3 652 1,679 729 830 1945—Dec. 31. . 26 143 7 334 3 044 2 4531,172 80 287 298 18 809 17 574 477 *3 433 3 325 10 337 1 606 629 1946—Dec. 31.. 20 834 6 368 4 078 1,096 389 99 455 250 14 465 13 308 387 1 725 992 10 202 1 557 601 1947—Dec. 31.. 20 393 7 179 5 361 545 267 111 564 330 13 215 11 972 1,002 640 558 9 771 638 604 1948—Dec. 31.. 18 759 8 048 5 642 "*3 1,102 225 224 643 306 10 712 9 649 589 1 183 365 7 512 563 500 1949—June 30.. 19 103 7 689 4 710 11,701 248 209 650 268 11 413 10 278 777 1 472 132 7 897 611 525 Dec. 313. 19 583 7 550 4 792 1,410 219 256 689 309 12 033 10 746 720 1 785 835 7 405 752 535 1950—Apr. 24.. 19 216 7 616 11 S99 9 987 1,030 582 Chicago:* 1941—Dec. 31. . 2 760 954 732 6 48 52 22 9 1 806 1 430 256 153 903 119 182 193 1 1 9 9 4 46 5 — — D £) e ec c # . 3 3 1 1 . . . . 5 4 9 7 3 6 1 5 3 4 3 9 3 9 1,0 76 9 C 4 3 2 2 1 1 1 1 7 2 1 3 0 3 1 3 5 6 1 1 5 0 1 5 4 2 0 9 4 3 5 2 9 6 8 6 4 2 2 91 1 2 3 1 6 3 0 3 1 4 4 6 9 7 8 7 1 4 4 9 6 2 1 8 20 6 7 4 1 1 8 6 1 7 2 1 0 8 4 7 1947—Dec. 31.. 5 088 801 1 3 73 87 46 149 26 3 287 2 890 132 235 248 2 274 213 185 1948—Dec. 31.. 4 799 783 1]412 4 71 63 51 176 27 3 016 2 633 183 275 217 1 958 210 174 1949—June 30. . 4 841 537 1,178 6 83 60 48 156 26 3 303 2 888 369 343 125 2 051 235 180 Dec. 31. . 5 424 618 1,211 109 56 51 172 34 3 806 3 324 331 690 358 1 945 290 192 1950—Apr. 24. . 5 091 1 527 3 3 01 f 340 213 Reserve city banks: 1941—Dec. 31. . 15 347 7 105 3,456 300 114 194 1,527 1, 512 8,243 6 467 295 751 4 248 1,173 956 820 1945—Dec. 31. . 40 108 8 514 3,661 205 427 1,5031,459 855 404 31,594 29 552 1,034 6,982 5,65315 878 5 1,126 916 1946—Dec. 31.. 35 351 10 825 5,548 201 264 704 2,237 1,436 435 24,527 22 250 441 3,799 1,99316 013 4 1,272 1,004 1947—Dec. 31.. 36 040 13 449 7,088 225 170 484 3,147 1,969 366 22 591 20 196 373 2,358 1,901 15 560 3 1,342 1,053 1948—Dec. 31. . 35 332 14 285 7,282 437 130 360 3,5032,315 412 21,047 18 594 1,056 3,201 1 090 13 247 11,4211,032 1949—June 30. . 35,034 13 261 6,227 378 150 321 3,5592,408 385 21,772 19 076 875 3,367 603 14 230 1,559 1,137 Dec. 31 3. 38 301 14,370 ,704 457 183 309 3,7422,745 432 23,931 20 951 1,189 4,180 2,124 13 457 1,727 1,254 1950—Apr. 24 38 14 23 794 20 61? 1,918 1,263 Country banks: 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 1945—Dec. 31. . 35,002 5,596 1,484 648 42 471 1,881 707 363 29,407 26,999 630 5,102 4,544 16,713 9 1,342 1,067 1946—Dec. 31.. 35,412 8,004 2,433 681 29 273 2,9701,312 306 27,408 24,572 279 4,020 2,47017,797 6 1,5511,285 1947—Dec. 31. . 36,324 10,199 3,096 818 23 227 3,827 1,979 229 26,125 22,857 480 2,583 2,108 17,681 62,006 1,262 1948—Dec. 31. . 36,726 11,945 3,2961,356 21 187 4,4672,451 261 24,781 21,278 760 3,340 1,12816,046 42,286 1,217 1949—June 30.. 36,338 11,968 3,0981,319 23 1754,5672,644 256 24,370 20,889 630 3,286 778 16,192 42,306 1,174 Dec. 31. . 38,219 12,692 3,1501,480 36 1734,7842,945 259 25,527 21,862 1,148 3,753 1,76815,189 42,505 1,160 1950—Apr. 24.. 38,927 13,148 25 779 21 964 2,6661,148 Insured nonmember commercial banks: 1941—Dec. 31. . 5,776 3,241 543 478 20 64 1,282 854 2,535 1,509 17 152 1,069 271 563 462 1945—Dec. 31. . 14,639 2,992 512 459 31 228 1,224 460 77 11,647 10,584 180 2,087 1,774 6,538 6 619 443 1946—Dec. 31. . 15,831 4,040 862 474 12 142 1,748 723 79 11,791 10,524 104 2,247 1,179 6,991 2 752 516 1947—Dec. 31. . 16,444 4,958 1,049 563 13 1252,139 992 76 11,486 10,039 136 1,736 1,104 7,058 4 931 517 1948—Dec. 31. 16,685 5,911 1,131 975 12 105 2,4261,220 89 10,774 9,246 234 2,066 594 6,349 .31,030 498 1949—June 30.. 16,447 6,071 1,0791,030 14 97 2,5081,311 87 10,376 8,849 196 1,968 406 6,277 r A1,054 473 Dec. 31.. 16,766 6,258 1,0781,018 12 97 2,575 1,453 87 10,508 8,947 303 2,071 725 5,846 2 1,127 434 * These figures do not include data for banks in possessions of the United States. During 1941 three mutual savings banks became members of the Federal Reserve System; these banks are included in "member banks" but are not included in "all insured commercial banks." Comparability of figures for classes of banks is affected somewhat by changes in Federal Reserve membership,, insurance status, and the reserve classifications of cities and individual banks, and by mergers, etc. 1 Beginning June 30, 1948, figures for various loan items are shown gross (i. e., before deduction of valuation reserves); they do not add to the total and are not entirely comparable with prior figures. Total loans continue to be shown net. 2 Central reserve city banks. For other footnotes see opposite page. 1032 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 [In millions of dollars] Demand deposits Time deposits Cla c s a s l a l n o d d f a b te ank f s B e s w e R R e d a r i r e v n e e t v r h - - e k e a s s l v C a i a n u s l h t b m a w a B n d e n i c a o s k t l e - t h - s i s c * j m p u D o a s d a t d s e e n e i - - - t d d s 5 m D e ] s I d o t n i e - c t p e * o rb s a i F e t n i s o g k r n - U m G er . o e n S n v - t - . p v s S o i u a t l s a b i n i t o t d i d 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 i d d t s k . - i ' s - , p a v n s a p i I t h d d r i n o o t i u d r n p c n a a i e s o s - l - , r s r - - , I b n a t n e k r- P U m G S e i a o n . r a o n e g s n v S d v n t s - - a - t . l v s S p i a u i s o t c n i b a l a o i d t d l t n e - i s s - p a v n s a p i t I h d d i r n o o t i u d r n p c n a a i s e o s - - l , r r s - - , r B i o n o w g r s - - c C o a t a u a c p l n - i t - s All insured commercial banks: 1941—Dec. 31.. 12 396 1,358 8 570 37,845 9,823 673 1,761 3 677 1 077 36,544 158 59 492 15,146 10 6,844 1945—Dec. 31.. 15,810 1,829 11 075 74,722 12,566 1L,24823,740 5 098 2 585 72,593 70 103 496 29,277 215 8,671 1946—Dec. 31. . 16,013 2,012 9 481 82,08510,888 1[,364 2,930 5 967 2 361 79,887 68 119 664 32,742 39 9,286 194 r— Dec. 31.. 17,796 2,145 9 736 85,75111,236 1L.379 1,325 6 692 2 559 83,723 54 111 826 33, 946 61 9,734 1948—Dec. 31. . 20,404 1,939 8 947 84,21110,344 1L ,4882,323 7 182 2 113 81,682 69 117 1,080 34,244 54 10,158 1949—June 30. . 17,807 2,036 7 777 80,613 9,058 1L.374 2,135 7 337 2,352 77 005 146 163 1,243 34,560 27 10,452 Dec. 31.. 16,428 1,984 9 466 84,57610,885 L ,3153,050 7 419 2,338 82 106 169 182 1,232 34,442 14 10,645 Member banks, total: 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 1945—Dec. 31.. 15,811 1,438 7 117 64,18412,333 1,24322,179 4 240 2,450 62 950 64 99 399 23 712 208 7,589 1946—Dec. 31. . 16,015 1,576 5 936 70,24310,644 L,353 2,672 4 915 2,207 69 127 62 114 551 26 525 30 8,095 1947—Dec. 31.. 17,797 1,672 6 270 73,52810,978 1,375 1,176 5 504 2,401 72 704 50 105 693 27 542 54 8,464 1948—Dec. 31.. 20,406 1,486 5 674 72,152 10,098 1,480 2,122 5 850 1,962 70 947 63 111 927 27 801 45 8,801 1949—June 30. . 17,808 1,568 5 065 69,397 8,864 L.369 1,980 5 983 2,222 67 157 141 157 1,069 28 038 21 9,022 Dec. 31.. 16,429 1,521 6 194 72,65810,623 1,310 2,838 6 017 2,185 71 589 164 175 1,051 27 934 11 9,174 1950—Apr. 24.. 15,643 1,653 5 288 71,869 9,150 1,343 2,687 6 100 1,718 69 365 150 170 1,074 28 213 252 9,347 New York City:* 1941—Dec. 31 . 5405 93 141 10,761 3,595 607 866 319 450 11 282 6 29 778 1,648 1945—Dec. 31.. 4,015 111 78 15,065 3,535 1,105 6,940 237 1,338 15 712 17 10 20 1 206 195 2,120 1946—Dec. 31. . 4,046 131 87 16,429 3,031 1,195 651 218 942 17 216 20 15 39 1 395 2,205 1947—Dec. 31. . 4,639 151 70 16,653 3,236 1,217 267 290 1,105 17 646 12 12 14 1 418 30 2,259 1948—Dec. 31.. 5,643 117 67 15,773 2,904 1,278 445 241 750 16 695 31 14 20 1 646 25 2,306 1949— D juence . 3 3 0 1 . 3 . . 4 4 , ,4 7 6 2 2 6 1 11 3 2 0 5 6 6 8 1 1 5 5 , , 2 1 5 8 4 2 2 2,9 6 9 80 6 1 1, , 0 1 8 5 4 0 5 6 6 4 2 0 2 1 5 9 4 6 1,2 8 0 95 1 1 1 5 6 9 4 8 0 6 8 1 9 1 0 3 3 2 8 5 3 2 3 4 1 1 6 5 3 9 7 0 2 2 , ,3 3 1 4 2 0 1950—Apr. 24.. 4,297 131 33 14,913 2,621 1,112 518 270 625 15 559 98 35 20 1 535 i52 2,330 Chicago:2 /* 1941—Dec. 31.. 1,021 43 298 2,215 1,027 8 127 233 34 2 152 476 288 1945—Dec. 31.. 942 36 200 3,153 1,292 20 1,552 237 66 3 160 719 377 1946—Dec. 31. . 928 29 172 3,356 1,130 24 152 228 47 3 495 2 4 823 404 1947—Dec. 31. . 1,070 30 175 3,737 1,196 21 72 285 63 3 853 2 9 902 426 1948—Dec. 31. . 1,325 28 143 3,604 1,038 26 188 284 53 3 702 1 11 989 444 1949—june 30. . 1,174 25 149 3,470 962 46 197 307 41 3 475 3 12 1,044 462 Dec. 31. . 1,183 27 159 3,797 1,151 40 258 286 60 3 932 4 10 1 069 470 1950—Apr. 24.. 1,092 29 121 3,601 956 42 178 250 39 3 626 4 10 1 072 470 Reserve city banks: 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 1945—Dec. 31. . 6,326 494 2,174 22,372 6,307 110 8,221 1,763 611 22,281 30 38 160 9 563 2 2,566 1946—Dec. 31. . 6,337 532 1,923 24,221 5,417 127 991 2,077 693 24,288 25 43 235 10 580 4 2,729 1947—Dec. 31. . 7,095 562 2,125 25,714 5,497 131 405 2,282 705 26,003 22 45 332 11,045 1 2,844 1948—Dec. 31. . 7,701 483 1,845 25,072 5,213 168 801 2,401 649 25,302 19 46 547 10,798 8 2,928 1949—June 30. . 6,781 500 1,744 24,271 4,460 166 701 2,413 518 23,928 39 62 642 10,923 1 3,005 Dec. 31 3. 6,413 482 1,965 25,744 5,498 176 1,142 2,478 650 25,912 38 60 617 10,987 3,087 1950—Apr. 24.. 5,988 520 1,686 25,637 4,730 180 1,124 2,444 561 25,230 38 56 614 11,062 '"65 3,131 Country banks: 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 1945—Dec. 31.. 4,527 796 4,665 23,595 1,199 8 5,465 2,004 435 21,797 17 52 219 12,224 11 2,525 1946—Dec. 31. . 4,703 883 3,753 26,237 1,067 8 877 2,391 524 24,128 17 55 272 13,727 26 2,757 1947—Dec. 31.. 4,993 929 3,900 27,424 1,049 7 432 2,647 528 25,203 17 45 337 14,177 23 2,934 1948—Dec. 31. . 5,736 858 3,619 27,703 943 8 688 2,925 510 25,248 13 49 350 14,369 12 ,123 1949—june 30. . 5,127 913 3,117 26,402 762 8 520 3,009 462 23,767 12 67 383 14,433 21 ,215 Dec. 31. . 4,371 901 4,002 27.935 979 9 797 3,058 579 25,337 13 73 400 14,289 11 3,305 1950—Apr. 24.. 4,266 973 3,448 27,717 844 8 866 3,136 493 24,949 13 74 429 14,544 35 ,416 Insured nonmember commercial banks: 1941—Dec. 31 271 2,325 4 092 108 2 53 611 68 3,483 18 8 74 3,276 6 959 1945—Dec. 31. . 391 3,959 10,537 233 c 1,560 858 135 9,643 6 4 97 5,579 ,083 1946—Dec. 31 437 3,547 11,842 244 258 1,052 154 10,761 6 5 113 6,232 9 ,193 1947—Dec 31 473 3,466 12,223 258 149 1,188 11,019 4 6 132 6,420 7 ,271 1948—Dec. 31 453 3,273 12,059 246 c 201 1^332 151 10^736 6 6 153 6,459 8 L.358 1949—june 30 468 2,713 11,216 194 4 155 1,354 130 9,848 6 6 174 6,539 c 1,431 Dec. 31 463 3,273 11,918 261 6 213 1,402 153 10,517 t 6 182 6,524 3 L,473 3 Figures not entirely comparable with prior dates due to reclassification of 9 central reserve city banks in New York City as reserve city *banks. * 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. s Demand deposits other than interbank and U. S. Government, less cash items reported as in process of collection. For other footnotes see preceding page. Back figures.—See Banking and Monetary Statistics, Tables 18-45, pp. 72-103 and 108-113. AUGUST 1950 1033 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 1 Investments For purchasing or carrying securities U. S. Government obligations Com- Total merloans cial, To brokers Date or month i m n a v e n e n d s t t s - Total* in t a r d i n a u d l s , - and dealers To others e R l s o t e a a a n t l e s L ba o t n o a k n s s O lo t a h n e s r Total c C t a i e f t i e r - - s O s ri e t t h c i e u e r s a c g u r l i - - G U o .S vt . . Other G U k . > S v . t.Other Total Bills o d f e b in t- - Notes Bonds2 tural t l i o i o g b n a - - s c t u ie r s i- l t o i i g o b a - n - s c t u ie n s - n e e d s - s Total— Leading Cities 1949—June 62,41423,517 13,349 819 738 212 422 4,106 243 3,92838,897 34,388 2,168 5,314 958 25,948 4,509 1950—April.... ... 66,61124,985 13,624 7271,004 140 4,494 330 4,586 41,62635,989 1,709 4,351 5,883 24,0465,637 May 66,73524,957 13,376 6431,098 139 491 4,559 319 4,716 41,77836,176 1,924 4,372 5,74524,1355,602 June 67,531 25,261 13,497 1,266 138 505 4,651 309 4,861 42,27036,565 2,355 3,112 6,74624,3525,705 1950—May 3... 66,53425,009 13,420 7151,098 144 480 4,522 368 4,644 41,52535,916 1,753 4,307 5,776 24,0805,609 May 10... 66,40124,918 13,365 7141,073 137 475 4,541 323 4,674 41,48335,899 1,744 4,316 5,756 24,0835,584 May 17... 66,689 24,844 13,377 5471,101 140 488 4,563 305 4,707 41,84536,251 1,972 4,417 5 24,1315,594 May 24... 66,951 24,984 13,359 5381,116 137 523 4,576 364 4,755 41,96736,359 2,025 4,402 5,744 24,1885,608 May 31... 67,10325,033 13,359 7001,101 138 489 4,595 235 4,800 42,07036,456 2,125 4,420 5,718 24,1935,614 June 7. . 66,96025,092 13,394 5301,190 139 506 4,612 297 4,810 41,86836,183 2,005 3,141 6,78624,2515,685 June 14... 67,29925,105 13,459 4481,207 133 504 4,644 250 4,845 42,19436,505 2,250 3,173 6,76524,3175,689 June 21... 67,905 25,261 13,532 3301,317 137 505 4,664 284 4,-877 42,64436,935 2,523 3,220 6,78424,4085,709 June 28... 67,96025,584 13,602 3681,349 144 508 4,682 405 4,912 42,37636,638 2,641 2,916 6,648 24,4335,738 July 5... 67,65225,733 13,660 540 1,267 144 500 4,712 366 4,932 41,91936,152 2,405 2,264 7,03624,4475,767 July 12... 67,58625,469 13,725 4411,091 146 498 4,755 254 4,948 42,11736,248 2,522 2,231 7,040 24,4555,869 July 19... 67,87525,695 13,791 6141,040 150 491 4,776 240 4,982 42,18036,222 2,496 2,217 7,03324,4765,958 68,02826,352 13,911 1,064 164 501 4,794 304 5,060 41,67635,727 2,025 2,200 7,01924,4835,949 July 26... New York City 18,469 7,393 4,745 760 592 206 168 78711,076 9,976 834 1,390 118 7,634 1,100 1949—June 19,143 7,662 4,732 638 799 184 287 195 93111,481 9,891 389 861 1,576 7,065 1,590 1950—April....... 19,061 7,686 4,612 579 885 209 306 218 98111,37. 9,906 445 899 1,489 7,073 1,469 May 19,411 7,747 4,655 3701,016 214 327 261 1,01011,66410,170 677 582 1,730 7,181 1,494 1950— J M M M M M u a n a a a a y y y y e y 2 3 1 1 3 7 1 0 4 . . . . . • . . . . . . . .. 1 1 1 1 1 9 8 9 8 9 , , , , , 2 8 0 9 1 0 8 9 3 8 7 8 0 4 4 7 7 7 7 7 , , , , , 7 7 7 6 6 8 0 1 1 0 5 4 8 9 3 4 4 4 4 4 , , , , , 6 5 5 5 6 7 1 9 9 8 2 7 1 9 3 4 4 6 6 6 9 1 4 4 9 6 9 2 9 0 8 8 8 8 88 7 9 9 9 1 3 2 0 0 2 2 2 2 1 0 3 0 0 9 5 8 0 4 6 3 3 3 3 2 0 1 1 0 9 1 5 2 8 4 2 2 2 3 1 1 2 0 1 2 6 8 5 5 7 9 9 9 9 9 8 5 6 9 9 1 8 9 8 7 1 1 1 1 1 1 1 1 1 1 , , , , , 3 3 5 4 1 3 0 6 8 8 1 5 5 9 4 1 1 9 9 9 0 0 , , , , , 7 8 8 0 0 2 7 1 2 9 9 4 0 4 4 3 3 4 5 5 5 2 7 6 0 1 5 7 3 8 8 9 9 9 8 3 5 1 5 4 1 7 6 0 4 1 1 1 1 1 , , , , , 4 4 4 5 4 7 8 8 0 9 2 7 7 8 0 7 7 7 7 7, , , , , 0 0 0 0 0 8 7 4 9 6 7 5 4 8 1 1 1 1 1 1 , , , , , 4 4 4 4 4 5 9 5 6 7 7 5 5 5 1 June 7... 19,147 7,675 4,583 468 966 219 317 220 1,00811,472 9,987 497 598 1,759 7,133 1,485 June 14. .. 19,280 7,670 4,637 396 972 214 326 225 1,01011,61010,122 620 631 1,729 7,142 1,488 June 21. .. 19,502 7,695 4,686 2851,036 212 331 244 1,00711,807 10,303 714 633 1,752 7,204 1,504 June 28... 19,716 7,947 4,712 3321,089 213 336 355 1,01311,769 10,269 877 469 1,679 7,244 1,500 July 5... 19,412 7,924 4,722 1,017 204 342 228 1,01911,488 9,967 720 321 1,679 7,247 1,521 July 12... 19,286 7,692 4,760 387 851 201 355 226 1,01411,594 9,971 767 316 1,656 7,232 1,623 July 19... 19,316 7,766 4,772 556 810 197 357 155 1,01711,550 9,892 724 322 1,643 7,203 1,658 July 26... 19,347 8,153 4,825 851 823 203 359 146 1,03011,194 9,546 393 342 1,630 7,181 1,648 Outside New York City 1949—June 43,945 16,124 8,604 146 2543,900 75 3,14127,821 24,412 1,334 3,924 84018,314 3,409 1950—April.. 47,468 17,323 8,892 205 119 2774,207 135 3,655 30,14526,098 1,320 3,490 4,307 16,9814,047 May...... 47,674 17,271 8,764 213 118 2824,253 101 3,735 30,40326,270 1,479 3,473 4,256 17,062 4,133 June...... 48,120 17,514 8,842 250 119 2914,324 48 3,85130,60626,395 1,678 2,530 5,016 17,1714,211 1950—May 3... 47,444 17,224 8,737 206 119 2804,228 152 3,686 30',,:22026,106 1,376 3,457 4,268 17,005 4,114 May 10. . . 47,513 17,214 8,748 200 118 279 4,240 118 3,705 30,,:29926,170 1,393 3,472 4,266 17,039 4,129 May 17. .. 47,755 17,241 8,778 211 119 283 4,255 77 3,726 30,51426,377 1,547 3,501 4,259 17,070 4,137 May 24.-. . 47,74417,266 8,768 235 118 2854,264 49 3,758 30,47826,335 1,517 3,471 4,257 17,090 4,143 May 31. . . 47,919 17,414 8,787 211 119 2854,280 108 3,802 30,50526,362 1,5.62 3,463 4,231 17,106 4,143 June 7... 47,813 17,417 8,811 224 120 28:4,295 r 3,802 30,39626,196 1,508 2,543 5,027 17,118 4,200 J J J u u u n n n e e e 2 2 1 8 1 4 . . . . . . . . . . 4 4 4 8 8 8 , , , 4 0 2 0 1 4 3 9 4 1 1 1 7 7 7 , , , 6 4 5 3 3 6 7 5 6 8 8 8 , , , 8 8 8 2 4 9 2 6 0 2 2 28 3 6 1 5 0 1 1 12 1 1 2 8 8 2 2 29 9 9 5 3 0 4 4 4 , , , 3 3 3 4 3 1 6 3 8 5 2 4 0 5 0 3 3 3 , , , 8 8 8 9 3 7 9 5 0 3 3 3 0 0 0 , , , 5 8 6 8 3 0 4 7 7 2 2 2 6 6 6 , , , 3 3 6 8 6 3 3 9 2 1 1 1 , , , 6 8 7 3 0 6 0 9 4 2 2 2 , , , 5 4 5 8 4 4 7 7 2 4 5 5, , , 0 0 9 3 3 6 2 6 9 1 1 1 7 7 7 , , , 1 1 2 8 7 0 9 5 4 4 4 4 , , , 2 2 2 0 0 3 1 5 8 July 5... 48,240 17,809 8,938 250 121 2964,370 138 3,913 30,43126,185 1,685 1,943 5,35717,200 4,246 July 12 . . . 48,300 17,777 8,965 240 122 29:4,400 28 3,934 30,52326,277 1,755 1,915 5,38417,2234,246 July 19... 48,559 17,929 9,019 230 122 294 4,419 85 3,96530,63026,330 1,772 1,895 5,39017,2734,300 July 26... 48,681 18,199 9,086 241 122 2984,435 158 4,03030,48226,181 1,632 1,858 5,38917,302 4,301 1 Figures for various loan items are shown gross (i. e.f before deduction of valuation reserves); they do not add to the total, which is shown net. 2 Including guaranteed obligations. 1034 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- Date or month B s F w e R e a e r r i e a n d t v - h l k - e s v C a i a u n s lt h b m a w a n d e o n i c s t - e k h ti s s c j p m u o d a s a t e d s e n - i - d t d s 5 s p p u v n c h a o a a o i e n i d r r l p r r d s a t - - - s - , - , S p s d s a i i o u t c i o n a v b l a n d i t - i l t e - s - s c C c O h a f e e e i t e n e f c r r f c d d . t i s k i - ' - s, U m G er . o e n v n S - - t . s p p u v n h c a o a a o i e n i d r r l p r r d s a t - - - s - , - , S p s d s a i i o u t i c o n a v b l a n d i t - i l t e - s - s P U m G S e i a o n . r a n o e S n s g v v n d . t - s - a - t l m D t D e i o s c - e - man F ei d o g r n - Time 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 t a s b n - < k tions tions Total— Leading Cities 1949—June 13,378 771 2,122 46,383 46,264 3,475 1,309 87714,541 665 106 8,311 1,323 118 290 6,117 94,386 1950—April 11,788 773 2,146 46,570 46,846 3,362 1,300 2,21114,684 619 121 8,921 1,296 141 369 6,270 93,409 May 11,816 771 """ 47,224 3,485 1,357 1,906 14,722 636 122 8,8051,258 156 328 6,310 97,419 June 11,996 806 2,270 47,868 48,146 3,556 1,2.89 2,02914,748 653 126 8,9081,279 193 243 6,372103,901 1950—May 3... 11,776 731 2,175 46,928 46,672 3,601 1,265 1,668 14,717 633 122 8,9661,251 139 364 6,304 23,846 May 10... 11,733 787 2,151 46,780 3,409 1,395 1,697 14,711 637 121 8,8981,253 140 300 6,305 21,265 May 17... 11,891 768 2,348 46,933 47,525 3,400 1,237 2,12114,713 636 120 9,107 1,259 139 235 6,305 22,836 May 24... 11,844 787 2,120 47,380 47,286 3,443 1,524 2,06114,732 637 123 8,5761,259 180 323 6,313 22,528 May 31... 11,820 783 2,127 47,533 47,856 3,571 1,363 1,982 14,738 636 122 8,4771,270 183 417 6,326 18,867 June 7... 11,940 781 2,146 47,519 47,448 3,537 1,205 1,67214,740 655 122 8,900 1,271 188 256 6,337 22,788 June 14... 12,139 831 2,391 4-7-, 9-4 2-- 49,0103,462 1,276 1,85414,746 652 122 9,178 1,279 193 192 6,324 22,850 June 21... 12,021 792 22,,334444 4488,040 48,201 3,614 1,365 2,23814,739 654 124 8,9351,285 196 213 6,406 25,296 June 28... 11,884 818 2,198 47,97247,925 3,611 1,312 2,350 14,768 652 132 8,618 1,283 197 309 6,422 24,034 July 5... 12,118 754 2,294 47,396 47,647 3,516 1,466 2,35514,749 650 134 9,2071,246 198 338 6,446 22,332 July 12... 12,088 854 2,458 47,54748,615 3,351 1,275 2,319 14,712 648 137 9,4671,235 198 142 6,453 22,693 July 19... 11,972 797 2,198 47,728 48,552 3,237 1,325 2,34014,679 650 136 8,961 1,237 205 345 6,436 24,248 12,250 816 2,156 48,466 48,912 3,374 1,415 2,20514,627 638 134 8,6441,229 204 529 6,459 23,296 July 26... New York City 4,929 119 15,140 15,789 205 704 287 1,517 2,660 1,119 95 186 2,270 40,617 1949—June 4,359 124 14,84915,520 251 646 586 1,490 2,678 1,074 96 237 2,289 38,480 1950—April 4,328 121 14,88115,571 218 698 481 1,524 2,658 1,041 112 184 2,302 40,037 May 4,386 128 15,18115,863 236 616 527 1,542 2,746 1,057 146 96 2,298 42,294 June. 1950—May 3... 4,323 117 14,90215,440 321 586 430 1,512 2,686 1,033 96 236 2,301 10,193 May 10... 4,278 125 14,74415,352 191 762 431 1,519 2,6411,034 96 184 2,299 9,219 May 17... 4,337 118 14,74215,554 175 570 541 1,508 2,746 1,043 96 93 2,300 9,067 May 24... 4,268 123 15,02415,701 186 868 520 1,533 2,590 1,041 134 132 2,300 9,234 May 31... 4,436 124 14,99315,810 218 703 487 1,549 2,627 1,052 139 274 2,311 7,421 June 7... 4,365 125 15,05515,624 193 556 412 1,535 2,6861,053 142 124 2,303 9,396 June 14... 4,450 131 15,11516,006 205 583 487 1,544 2,7921,055 145 86 2,297 9,285 June 21... 4,462 121 15,34915,919 304 677 570 1,538 2,781 1,062 149 8 2,298 9.721 June 28... 4,268 133 15,20315,901 242 646 639 1,552 2,7271,059 149 168 2,294 10,196 July 5... 4,458 127 14,95415,651 238 719 628 1,532 2,840 1,029 150 238 2,308 9,239 July 12... 4,317 136 14,84815,656 255 584 618 1,523 2,8901,017 150 54 2,308 9,048 July 19... 4,305 122 14,99715,698 238 603 618 1,512 2,6591,016 158 143 2,308 9,450 July 26... 4,581 126 15,18115,837 251 719 586 1,500 2,617 1,007 155 364 2,308 9,635 Outside New York City 1949—June 8,449 652 2,084 31,24330,475 3,270 605 59013,024 629 87 5,651 204 104 3,847 53,769 1950—April 7,429 649 2,109>31,72131,326 3,111 654 1,625 13,194 599 86 6,243 222 132 3,981 54,929 May 7,488 650 152! 3322,,225500 31,653 3,267 659 1,425 13,198 616 86 6,147 217 144 4,008 57,382 June.... 7,610 678 ,236 32,68732,283 3,320 673 1,502 13,206 633 89 6,162 222 4,074 61,607 1950—May 3. 7,453 614 2,146 32,026 31,232 3,280 679 ,23813,205 S14 87 6,280 218 128 4,003 13,653 May 10. 7,455 662 2,123 322,13731,428 3,218 633 ,26613,192 617 86 6,257 219 116 4,006 12,046 May 17. 7,554 650 2,310 322,19131,971 3,225 667 ,58013,205 617 85 6,361 216 142 4,005 13,769 May 24. 7,576 664 2,09032,356 31,585 3,257 656 ,54113,199 617 87 5,986 218 191 4,013 13,294 May 31. 7,384 659 2,097 32,540 32,046 3,353 660 1,495 13,189 617 85 5,850 218 143 4,015 11,446 June 7. 7,575 656 2,116 32,464 31,824 3,344 649 1,260 13,205 635 85 6,214 218 132 4,034 13,392 June 14. 7,689 700 2,358 32,82733,004 3,257 693 1,367 13,202 632 85 6,386 224 106 4,027 13,565 June 21. 7,559 671 2,305 32,69132,282 3,310 688 1,668 13,201 635 87 6,154 223 205 4,108 15,575 June 28. 7,616 685 2,16332,76932,024 3,369 666 1,711 13,216 633 95 5,891 224 141 4,128 13,838 July 5. 627 2,25932,44231,996 3,278 747 1,727 13,217 631 97 6,367 217 100 4,138 13,093 July 12. 718 2,42732,69932,959 3,096 691 1,701 13,189 629 100 6,577 218 88 4,145 13,645 July 19. 675 2,16532,73132,854 2,999 722 1,722 13,167 632 99 6,302 221 202 4,128 14,798 July 26. 7,669 690 2,126 33,28533,075 3,123 696 1,619 13,127 618 97 6,027 222 165 4,151 13,661 3 Demand deposits other than interbank and U. S. Government, less cash items reported as in process of collection. 4 Monthly and weekly totals of debits to demand deposit accounts except interbank and U. S. Government accounts. Back figures,—For description of revision beginning July 3, 1946, see BULLETIN for June 1947, p. 692, and for back figures on the revised basis, see BULLETIN for July 1947, pp. 878-883; for old series, see Banking and Monetary Statistics, pp. 127-227. AUGUST 1950 1035 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

WEEKLY REPORTING MEMBER BANKS—BY FEDERAL RESERVE DISTRICTS LOANS AND INVESTMENTS [In millions of dollars] Loans * Investments For purchasing U. S. Government obligations or carrying securities Com- Total merd F i e s d tr e i r c a t l a R n e d s e d r a v t e e i m n lo a v e n a e n n d s t s t s - Total1 i t a t c n a c u r g i u d n i r a r l a d u a - l i l , - l s- G U a t T l i o i n o o g o . b d n a v - S - s t b d . . r e o O a c k t l s u i t e e e h e r r r - i s e s s - r G t l U i T o i o o g b . o n v a S - - s t . ot O h c t s u i t e e h e r r - s i e s - r e l R s o t e a a a n t l e sb L a o t n o a k n s s O lo th an er s Total Total Bills o d c n C t f e a e i e d f e t b s i i e r - - t s n - s - - Notes Bonds2 s O ri e t t c i h e u e s - r Boston June 28.. 3,065 1,130 684 c 19 12 18 170 2 243 1,935 1,708 62 92 254 1,300 227 July 5 . . 3,036 1,134 684 6 13 12 18 172 9 243 1,902 1,667 53 68 243 1,303 235 July 12. 3,054 1,133 689 6 12 12 17 173 1 246 1,921 1,684 73 67 245 1,299 237 July 19 3,054 1,147 688 6 11 12 16 176 14 247 1,907 1,665 57 61 233 1,314 242 July 26 3,064 1,159 682 11 15 12 16 176 13 257 1,905 1,665 61 65 241 1,298 240 New York* June 28.. . .. 22,122 8,751 5,028 3411,094 26 230 585 3551,236 13,371 11,635 1,013 526 1,865 8,231 1,736 July 5 21,836 8,739 5,039 5041,024 27 221 595 2311 24313,097 11,338 850 374 1,869 8,245 1 759 July 12 21,631 8,513 5,083 397 859 28 218 612 226 1,236 13,118 11,257 820 363 1,845 8,2291 861 July 19 . 21,676 8,595 5,096 570 818 32 214 615 1551,241 13,081 11,182 777 368 t ,831 8,206 1,899 July 26 21,709 8 984 5,150 865 830 46 220 618 1461 25412,725 10,835 445 388 L ,812 8,190 1 890 Philadelphia June 28 . .... 2,843 1,011 517 1 39 3 8 116 9 335 1,832 1,464 92 147 232 993 368 July 5 2,816 1 018 516 1 37 3 8 117 19 334 1,798 1,434 78 107 251 998 364 July 12 2,816 1 008 521 1 35 3 8 120 4 333 1,808 1,448 87 110 252 999 360 July 19 . .. 2,810 1,015 521 2 34 3 7 122 8 335 1,795 1,440 89 105 251 995 355 July 26 2,805 1,023 522 2 32 2 7 122 15 338 1,782 1,428 80 100 248 1,000 354 Cleveland June 28 4,711 1 509 809 8 33 19 55 315 1 290 3,202 2,806 153 156 491 2,006 396 July 5 4,716 1,521 803 8 34 19 55 317 15 292 3,195 2,799 157 136 507 1,999 396 July 12 4,735 1,509 805 8 31 19 56 318 1 293 3,226 2,829 189 129 511 2,000 397 July 19 4,746 1 520 809 9 31 19 55 319 5 295 3,226 2,827 189 129 509 2,000 399 July 26 4,798 1,568 815 10 41 20 54 321 26 303 3,230 2,831 186 122 523 2,000 399 Richmond June 28 2,695 956 424 1 10 12 20 230 3 268 1,739 1,583 84 114 282 1,103 156 July 5 2,695 955 421 1 10 12 19 231 3 270 1,740 1,583 85 84 311 1,103 157 July 12 . . 2,718 961 425 1 10 12 19 232 3 271 1,757 1,600 97 83 314 1,106 157 July 19 2,725 964 428 1 6 11 18 234 3 275 1,761 1,603 100 79 319 1,105 158 July 26 2,736 971 431 1 6 11 18 234 5 277 1,765 1,607 105 71 326 1,105 158 Atlanta June 28 2,421 926 522 13 15 23 82 7 278 1,495 1,283 56 175 295 757 212 July 5 2 446 935 531 14 11 23 84 7 279 1,511 1,297 77 136 330 754 214 July 12 2,459 924 523 13 12 23 86 5 276 1,535 1,320 90 139 329 762 215 July 19 2,471 931 523 14 12 23 86 10 277 1,540 1,324 88 138 335 763 216 July 26. . 2,472 949 531 13 14 23 88 11 283 1,523 1,304 -78 129 341 756 219 Chicago* June 28 9,630 2,659 1,609 7 96 22 57 386 22 502 6,971 6,092 607 580 1,162 3,743 879 July 5 9,636 2 692 1 625 15 90 23 58 388 34 502 6,944 6,064 587 473 1,259 3,745 880 July 12 9,562 2,669 1,641 9 84 23 58 390 2 505 6,893 6,016 548 447 1,264 3,757 877 July 19 9,673 2 732 1 661 22 82 23 57 392 33 505 6,941 6,040 541 455 1,263 3,781 901 July 26 9,732 2 829 1 691 48 83 23 60 394 55 518 6,903 6,001 508 456 1,248 3,789 902 St. Louis June 28 2,204 936 470 2 6 9 14 207 3 237 1,268 1,079 66 103 233 677 189 July 5 2,209 950 473 2 5 10 14 207 14 237 1,259 1,070 69 79 248 674 189 Tuly 12 2,241 942 472 1 6 10 14 212 1 238 1,299 1,111 97 86 248 680 188 July 19 2,236 954 477 1 5 10 14 213 5 241 1,282 1,093 81 78 254 680 189 July 26 2,231 966 482 2 5 10 14 215 7 243 1,265 1,076 70 67 255 684 189 Minneapolis June 28 1,237 474 225 3 3 5 85 159 763 629 20 52 131 426 134 July 5. 1 250 483 224 3 3 5 86 9 160 767 635 19 45 145 426 132 July 12 1 251 484 232 3 3 5 87 161 767 634 22 42 146 424 133 July 19. .. 1 239 487 234 3 3 4 87 162 752 619 6 35 145 433 133 July 26 1,253 495 233 3 3 5 88 6 164 758 627 5 35 150 437 131 Kansas City June 28 2,610 953 589 5 4 12 150 1 199 1,657 1,403 186 173 268 776 254 Julv 5. . . 2 602 967 592 7 4 12 151 10 198 1,635 1,382 168 132 309 773 253 July 12 2 645 966 596 7 4 12 154 1 199 1,679 1,425 206 131 314 774 254 July 19 2 685 979 608 6 4 12 155 1 200 1,706 1,452 229 130 317 776 254 July 26... . 2 692 996 617 6 4 12 155 8 201 1,696 1,440 207 133 322 778 256 Dallas June 28 2,523 1,201 827 7 10 42 101 227 1,322 1,184 115 154 255 660 138 July 5... 2 544 1 219 840 7 11 43 101 230 1,325 1,185 115 115 287 668 140 July 12 2 540 1 203 822 6 11 43 102 232 1,337 1,197 121 115 287 674 140 July 19 2,592 1,217 830 7 11 46 103 234 1,375 1,229 140 121 294 674 146 July 26... 2 587 1 228 837 7 9 47 103 239 1,359 1,217 128 121 294 674 142 San Francisco June 28 11,899 5,078 1,898 3 24 9 242,255 2 938 6,821 5,772 187 644 1,180 3,761 1,049 July 5. 1 866 5 120 1 912 3 23 9 242,263 15 944 6,746 5,698 147 515 1,277 3,759 1,048 July 12 1,934 5 157 1 916 18 25 9 25 2,269 10 958 6,777 5,727 172 519 1,285 3,751 1,050 July 19 1,968 5,154 1,916 3 23 10 252,274 6 970 6,814 5,748 199 518 1,282 3,749 1,066 July 26. . 1 949 5 184 1 920 5 23 10 252,280 12 983 6,765 5,696 152 513 1,259 3,772 1,069 City of Chicago* June 28 5,860 1 664 1 195 7 86 17 50 84 4 248 4,196 3,596 379 384 67? 2,161 600 July 5 5,821 1,682 1,207 14 81 17 50 84 8 248 4,139 3,538 323 288 762 2,165- 601 July 12. . 5 794 1 679 1 219 8 75 18 50 84 1 251 4,115 3,518 316 271 758 2,173 597 July 19 . 5,856 1 715 1 228 22 72 18 49 84 14 255 4,141 3,534 311 279 7S9 2,285 607 July 26 5,895 1,771 1,256 48 72 18 52 85 5 263 4,124 3,521 309 279 752 2,181 603 * 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. For other footnotes see preceding table. 1036 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 [In millions of dollars] Demand deposits, Time deposits, Interbank except interbank except interbank deposits Reserves Bal- De- Indi- Indi- Demand d F i e s d tr e i r c a t l a R nd es e d r a v t e e B s w F e R a e e r n i r e a d t v k h - l - e s v C a a i u n s l h t m b a w a n e d i n s c o t t e k - h i s c s j p m u o a d s a d t s e n e i - - t d d s 3 s p p u v n h c a o a a o e i n i r d r l p r r d s a t - - - s - , - , S p s d s t a i i o a u c i o n v l t b a n i d e i l t - s - s - c C h c O a e f e e e i n t f e c r c r f d d i t s k . - i ' s - , U m G e . r o e n v n S - - t . u p p s v n c a a h o o i a e n d l i r r r r d s p a - - - t , - s - S p s d s a i t i o u i c a o n v l a b t n d i i e l t - - s - s P U m G S e o i a n . r a o s n e n g v t v d n S a - s - - t . l m D ti e o c s - - F ei o g r n - Time r B i o n o w g r s - - c C o i a t a u c a p n - l - ts B d it e a s b n 4 - k tions tions Boston June 28 463 55 89 2,432 2,366 209 41 117 476 6 276 33 18 329 907 July 5 476 55 88 2,430 2,383 194 54 108 479 6 275 32 16 329 812 July 12 450 61 103 2,431 2,408 196 36 107 478 6 288 35 10 330 909 July 19 467 57 94 2,448 2,411 198 42 107 485 6 271 35 6 330 928 July 26. 459 60 84 2,461 2,395 198 52 100 485 5 264 36 2 330 852 New York* June 28. 4,532 182 122 16,801 17,250 562 695 720 2,401 26 46 2,794 1,062 151 181 2,496 10,961 July 5. 4,710 175 11716,543 17,022 544 774 703 2,391 27 46 2,919 1,033 152 244 2,511 9,798 July 12 4,602 190 12416,404 17,069 501 630 693 2,379 26 46 2,968 1,021 152 67 2,512 9,816 July 19 4,552 173 12316,547 17,103 451 659 693 2,365 25 46 2,732 1 020 160 144 2,510 10,175 July 26 4,837 176 11716,738 17,239 482 767 658 2,350 27 46 2,687 1,011 157 373 2,510 10,181 Philade^•phia June 28 . . 457 45 107 2,160 2,226 122 25 151 418 38 362 12 1 14 317 892 July 5 482 41 101 2,129 2,221 99 29 149 418 37 390 13 1 8 318 1,039 July 12 463 47 122 2,148 2,229 115 32 144 418 39 2 384 12 1 5 318 852 July 19. 462 44 105 2,123 2,215 108 33 148 418 40 2 379 11 5 318 911 July 26 460 45 97 2,146 2,228 102 29 138 417 40 1 350 11 1 9 318 822 Clevelard June 28 742 80 147 3,195 3,244 204 57 180 1,327 43 3 438 8 2 25 491 1,338 July 5 733 70 147 3,163 3,201 207 56 174 1,327 43 3 467 7 2 23 491 1,182 July 12. 731 84 156 3,185 3,286 210 57 171 1,324 42 3 476 7 2 38 491 1,235 July 19 738 80 152 3,223 3,286 213 66 176 1,321 42 3 465 7 2 26 491 1,413 July 26 753 83 148 3,343 3,372 226 63 165 1,318 42 3 438 7 2 13 492 1,300 Richmond June 28 433 68 159 2,099 2,092 161 42 90 571 26 19 332 4 2 7 235 785 July 5. 436 62 161 2,058 2,100 155 41 89 570 25 20 379 4 2 8 234 760 July 12 447 72 185 2,114 2,165 149 41 86 570 25 20 391 4 2 4 236 836 July 19 449 66 155 2,103 2,140 151 46 89 569 25 20 369 5 2 7 236 915 July 26. 447 69 153 2,142 2,147 161 45 82 568 25 20 345 6 2 10 236 822 Atlanta June 28 389 42 165 1,785 1,659 294 25 62 533 6 5 436 9 2 1 202 698 July 5. . . 404 37 199 1,797 1,698 286 26 60 533 6 5 496 8 2 2 202 673 July 12 399 45 209 1,814 1,758 278 25 61 532 5 5 506 10 2 203 753 July 19 404 41 168 1,811 1,750 271 27 62 530 5 5 467 11 2 14 194 817 July 26 385 44 168 1,833 1,737 279 30 58 528 6 5 443 10 2 5 202 734 Chicago June 28. . .. 1,765 109 313 6,494 6,412 657 105 484 2,617 30 17 1,368 48 1 13 754 3,127 July 5 1,792 103 330 6,375 6,280 647 111 531 2,614 30 17 1,490 44 1 19 756 3,111 July 12. 1,859 114 379 6,410 6,489 608 113 515 2,608 30 17 1,549 42 1 2 756 3,033 July 19. 1,795 107 309 6,375 6,402 591 118 526 2,603 31 17 1,468 44 1 83 752 3,152 July 26 1,820 103 339 6,607 6,603 623 109 494 2,599 31 17 1,403 45 1 62 753 3,193 St. Louis June 28 361 31 112 1,439 j .517 103 19 69 478 14 2 523 2 186 594 July 5. . . 359 29 122 1,416 L ,511 101 20 66 478 14 3 554 2 6 186 584 July 12 356 32 128 1,436 ;L,568 96 20 65 477 14 3 578 2 187 629 July 19. 374 30 114 1,449 1,563 96 21 65 476 14 3 555 2 8 187 716 July 26 362 31 107 1,462 L.555 95 20 61 475 14 3 526 2 7 187 646 Minneapolis June 28 193 14 93 833 778 167 15 60 248 1 270 3 4 11 104 361 July 5. . . 197 12 85 826 777 171 17 57 248 1 288 3 4 10 104 377 July 12 196 14 91 838 810 169 15 56 247 1 295 3 4 2 104 387 July 19. . 203 13 85 818 805 148 14 55 247 1 276 3 4 25 104 445 July 26. . 193 14 79 837 814 147 14 51 246 1 271 3 3 20 105 398 Kansas City June 28 471 34 270 1,925 1,877 244 33 84 392 1 767 1 1 7 215 821 July 5 482 29 295 1,890 1,890 244 31 82 392 1 3 831 1 1 2 216 754 July 12. . . .. 494 34 309 1,920 1,974 232 28 80 392 1 3 875 1 1 4 216 830 July 19 476 32 290 1,940 1,987 228 29 80 391 2 3 851 1 1 13 217 1,043 July 26 477 33 276 1,973 1,976 244 28 76 390 1 3 824 1 1 7 217 894 Dallas June 28 464 38 341 2,051 2,014 192 38 61 365 87 602 8 224 744 July 5 434 33 374 2,021 2,002 194 37 70 367 86 c 644 7 223 703 July 12 479 37 370 2,068 2,080 188 37 68 366 85 6 642 7 223 712 July 19 443 35 345 2,064 2,094 180 47 67 365 84 6 637 8 224 882 July 26 446 37 329 2,066 2,077 200 46 63 363 71 6 637 8 225 805 San Fnmcisco June 28 . 1.614 120 280 6,758 6,490 696 217 272 4,942 381 25 450 93 33 32 869 2,806 July 5 1,613 108 275 6,748 6,562 674 270 266 4,932 381 25 474 92 33 876 2,539 July 12 1,612 124 282 6,779 6,779 609 241 273 4,921 381 25 515 91 33 ' "io 877 2,701 July 19 1,609 119 258 6,827 6,796 602 223 272 4,909 382 24 491 90 33 14 873 2 851 July 26 1,611 121 259 6,858 6,769 617 212 259 4,888 381 24 456 89 35 21 884 2,649 City of Chicago* June 28 . . 1,188 38 140 4,044 4,082 344 45 215 1,383 25 4 997 42 508 1,938 July 5 1,223 39 148 3,959 3,987 323 60 212 1,380 25 4 1,089 39 18 510 1,940 July 12 1,239 40 184 3,961 4,091 308 52 209 1,375 25 4 1,140 37 510 1,885 July 19 . . 1,220 36 135 3,946 4,056 299 54 211 1,372 25 4 1,066 38 83 506 1,819 July 26 1,230 36 147 4,077 4,180 301 53 205 1,371 25 4 1,028 40 58 506 1,934 For footnotes see opposite page and preceding table. AUGUST 1950 1037 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NUMBER OF BANKING OFFICES ON FEDERAL RESERVE PAR LIST AND NOT ON PAR LIST, BY FEDERAL RESERVE DISTRICTS AND STATES Total banks on On par list which checks are Not on Dar list drawn, and their (nonmember) Federal Reserve branches and offices * Total Member Nonmember district or State Banks a B nd ra n o c ff h ic e e s s2 Banks a B nd ra n o c ff h ic e e s s Banks a B n r d a n o c ff h ic e e s s Banks a B nd ra n o c ff h ic e e s s Banks a B nd ra n o c ff h ic e e s s United States total: Dec 31 1946 14,043 3,981 11,957 3,654 6,894 2,913 5,063 741 2,086 327 Dec 31 1947 14,078 4,148 12,037 3,823 6,917 3,051 5,120 772 2,041 325 Dec. 31, 1948 14,072 4,333 12,061 4,015 6,912 3,197 5,149 818 2,011 318 Dec. 31, 1949 14,051 4,562 12,178 4,289 6,887 3,387 5,291 902 1,873 273 June 30 1950? 14,039 4,671 12,178 4,391 6,880 3,476 5,298 915 1,861 280 By districts and by States June 30, 1950P District Boston 485 322 485 322 330 251 155 71 New York 889 911 889 911 765 842 124 69 Philadelphia 836 156 836 156 640 120 196 36 Cleveland 1,119 302 1,119 302 696 260 423 42 Richmond 1,012 519 805 386 478 249 327 137 207 133 Atlanta 1,191 212 588 173 351 150 237 23 603 39 Chicaeo 2,487 607 2,487 607 1,001 250 1,486 357 St. Louis 1,471 139 1,134 81 496 43 638 38 337 58 Minneapolis . 1,278 111 679 70 478 27 201 43 599 41 Kansas City 1,755 11 1,746 11 755 7 991 4 9 Dallas 1,023 50 917 41 626 26 291 15 106 9 San Francisco 493 1,331 493 1,331 264 1,251 229 80 State Alabama 225 25 129 25 92 25 37 96 Arizona 9 52 9 52 5 39 4 13 Arkansas 232 18 109 5 68 1 41 4 123 13 California 193 962 193 962 118 916 75 46 Colorado 147 2 147 2 92 2 55 Connecticut 110 39 110 39 64 34 46 5 Delaware 38 17 38 17 17 7 21 10 District of Columbia . 19 43 19 43 15 34 4 9 Florida 188 4 127 4 74 4 53 61 Georgia 397 41 110 37 66 34 44 3 287 4 Idaho 43 53 43 53 24 48 19 5 Illinois 887 2 885 2 505 2 380 2 Indiana 487 104 487 104 236 48 251 56 Iowa 661 164 661 164 161 500 164 Kansas 610 608 215 393 2 Kentucky . ... 383 41 383 41 112 25 271 16 Louisiana 162 75 59 52 46 45 13 7 103 23 M^aine 63 69 63 69 38 37 25 32 Maryland 164 119 164 119 77 79 87 40 "hA. assachusetts 178 170 178 170 142 154 36 16 Michigan 439 235 439 235 231 180 208 55 Minnesota 680 6 266 6 207 6 59 414 Mississippi 201 67 40 14 31 7 9 7 161 53 Missouri 594 528 180 348 66 Montana 111 111 84 27 Nebraska 411 2 411 2 141 2 270 Nevada 8 19 8 19 6 18 2 i New Hampshire 75 2 75 2 52 1 23 i New Jersey 326 156 326 156 281 141 45 15 New M^exico 51 12 51 12 35 2 16 10 New York . 636 766 636 766 555 711 81 55 North Carolina 209 202 96 75 54 43 42 32 113 127 North Dakota . 150 22 63 6 43 20 6 87 16 Ohio 658 222 658 222 423 193 235 29 Oklahoma 384 1 376 1 224 1 152 8 Oregon 69 98 69 98 29 87 40 11 969 187 969 187 739 160 230 27 Rhode Island 17 45 17 45 10 32 7 13 South Carolina 151 44 63 38 32 32 31 6 88 6 South Dakota 169 49 71 24 62 21 9 3 98 25 Tennessee 294 94 203 81 82 62 121 19 91 13 Texas 901 6 846 6 574 6 272 55 Utah 55 24 55 24 31 22 24 2 Vermont 69 11 69 11 40 2 29 9 Virginia 314 111 309 111 204 61 105 50 5 Washington 118 139 118 139 52 131 66 8 West Virginia 180 179 108 ii 71 1 Wisconsin 551 551 151 164 387 130 Wyoming 53 53 39 14 P Preliminary. 1 Excludes mutual savings banks, on a few of which some checks are drawn. 2 Branches and other additional offices at which deposits are received, checks paid, or money lent, including "banking facilities" at military reservations and other Government establishments (see BULLETIN for February 1950, p. 244, footnotes 9 and 10). Back figures.—See Banking and Monetary Statistics, Table 15, pp. 54-55, and Annual Reports. 1038 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

COMMERCIAL PAPER AND BANKERS' ACCEPTANCES OUTSTANDING [In millions of dollars] Dollar acceptances outstanding 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 - n l g Total Accept O b in i w l g ls n banks b B ou il g ls ht Others I U S m i t n n p a i t o t t o e e r s d ts E U S f x r t n p o a i o t m t e e r s d ts c D h e o a x l n l - g ar e G U s o h n o i i d p te p s p d o e s d i t n o t b r s e e F d i t o w n r i e e n e i g n o n r States countries 1949—May 219 195 84 58 27 110 118 44 17 12 June 199 198 87 54 33 111 121 47 17 13 July 211 194 90 57 33 104 117 44 19 13 August. .. 230 189 85 53 32 104 117 37 18 16 September 265 207 94 54 40 113 133 37 21 14 October. . 278 215 104 57 47 110 140 39 23 12 November 278 251 118 60 58 133 173 44 25 9 December. 257 272 128 58 70 144 184 49 30 9 1950—January... 258 280 134 67 68 146 190 49 32 9 February. 257 256 120 69 51 136 175 45 25 11 March. . . 258 245 100 63 37 145 165 45 23 12 April 257 237 93 62 31 144 157 47 18 15 May 250 231 93 59 34 138 142 58 15 17 June..... 240 279 126 82 44 154 170 66 21 21 1 As reported by dealers; includes some finance company paper sold in open market. 2 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 di u t s t b o a m la e n r c s e ' s 1 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 t n s n g t a in n a v d c e c t s o r t u a m d n e i t n s n g t a b n a d n k i s n borrowed2 Free O (n th e e t) r a I in n n a v d c p e c t a s o r t r u a m t d n n e i t e n s n r g t s' a in a n I c v d n c e t o s f r t i u a m r n d m e t i s n n g t I a n c ( c c n o a e u p t n ) it t a s l 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... 789 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—June 1,223 11 333 220 853 549 121 14 13 264 December... 1,138 12 413 313 795 654 112 29 13 299 1946—June 809 7 399 370 498 651 120 24 17 314 December... 540 5 312 456 218 694 120 30 10 290 1947—June 552 6 333 395 223 650 162 24 9 271 December... 578 7 315 393 240 612 176 23 15 273 1948—June 619 7 326 332 283 576 145 20 11 291 December... 550 10 312 349 257 586 112 28 5 278 1949—July 3 690 8 399 8 530 August 8 699 8 404 8 548 September. . 8 740 8418 8 580 October »783 8 416 8 586 November. . 8 813 8445 8 596 December. . 881 5 400 306 523 633 159 26 15 271 1950—January.. .. 8 901 8 493 8 669 February. . . 3 953 3522 3 669 March 3 1,018 «579 3 666 April....... 3 1,084 S619 8 678 May 31,175 3 750 3 657 June 1,256 12 386 314 827 673 166 25 11 312 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): April, 51; May, 64. 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. AUGUST 1950 1039 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OPEN-MARKET MONEY RATES IN NEW YORK BANK RATES ON BUSINESS LOANS [Per cent per annum] AVERAGE OF RATES CHARGED ON SHORT-TERM LOANS TO BUSINESSES BY BANKS IN SELECTED CITIES U.S. Government [Per cent per annum] mo Y w n e e t a h e r k , , or m m 4 p P - c e o a r o r t n p i o c m m t e i h a 6 r - e s , l - 1 a a P b d c n e a r a 9 c r i c n y s m e 0 e ' k s p s e - 1 t , - c S h n l a c e o t r a e o l e a x a w n s - l c - n 8 l g k - e m bi o 3 ll n - s t s « h ecu 9 d c m r - o c e e i t f t a o r o b y t t n t i i e e f n t 1 s y i h d - - 2 i - - eld 3 t i - a s y s x s t e u o a a e b r 5 s l - e An 1 n 9 A u a r c e l i a ti a e a v s n e : d ra g p e e s ri : od lo A a l n l s $ $ 1 1 0 ,0 ,0 0 0 0 0 - $ $ 1 1 0 0 S , 0 0 i ,0 0 ze 0 0 0 - of $ $ 1 l 2 0 o 0 0 a 0 * n , 0 0 0 0 0 0 -$ a 2 n 0 d 0 o ,0 v 0 e 0 r ness* 1940 2.1 4.3 3.0 2.0 1.8 1941 2.0 4.3 3.0 1.9 1.8 1942 2.2 4.4 3.2 2.2 2.0 1947 average .... 103 .87 1.38 .604 .88 1.32 1943 2.6 4.4 3.4 2.5 2.4 1948 average L.44 1.11 1.55 .043 L.14 L.62 1944 2.4 4.3 3.3 2.6 2.2 1949 averaee L.48 1.12 1.63 .104 .14 .43 1945 2.2 4.3 3.2 2.3 2.0 1946 2.1 4.2 3.1 2.2 1.7 1949—July L.56 1.06 1.63 .990 L.04 L.26 1947 2.1 4.2 3.1 2.5 1.8 August.... :1.44 1.06 1.63 .027 L.07 L.26 1948 2.5 4.4 3.5 2.8 2.2 September. 1L.38 1.06 1.63 L.062 L.08 :L.34 1949 2.7 4.6 3.7 3.0 2.4 October. .. L.38 1.06 1.63 1.044 1.09 L.38 November. L.38 1.06 1.63 L.073 L.09 :L.37 Quarterly: December . 1.31 1.06 1.63 L .097 :1.10 \L.37 19 cities: 1949—Sept 2.63 4.62 3.64 2.98 2.31 1950—January L.31 1.06 1.63 1L.100 1L.12 \L.39 Dec 2.65 4.53 3.61 2.98 2.35 February .. 1.31 1.06 1.63 L. 130 L.15 L.44 1950—Mar 2.60 4.45 3.54 2.94 2.31 March 1.31 1.06 1.63 L.140 L.16 L.45 June 2.68 4.50 3.65 2.94 2.39 April L.31 1.06 1.63 L.164 L.17 L.45 New York City: May L 31 1.06 1.63 1.167 L.18 1.45 1949—Sept 2.32 4.23 3.41 2.74 2.13 June 1.31 1.06 1.63 L .175 L.23 L.47 Dec 2.38 4.14 3.35 2.73 2.21 July 1^31 1.06 1.63 L.172 L.23 L.45 1950—Mar 2.29 3.85 3.22 2.64 2.13 June 2.34 3.94 3.35 2.73 2.16 Week ending: 7 Northern and East- July 1.... 1-^*-1 % 1VI« 1 y%—1M L.174 L.23 L.49 ern cities: July 8.... li^—1 5^ 1VI« 1J4~1M L.168 L.23 L.48 1949—Sept 2.64 4.71 3.63 2.93 2.39 July 15.... 1M—1 % lVie 1^~1M L.173 L.22 L.45 Dec. 2.67 4.63 3.65 3.00 2.41 July 22.... lVie 1J4~~1M 1.174 L.23 L.45 1950—Mar 2.55 4.64 3.60 2.91 2.28 July 29.... 1M-1H lVie lfcHM 1.174 1.23 1.44 June... 2.67 4.58 3.62 2.82 2.45 11 Southern and 1 Monthly figures are averages of weekly prevailing rates. Western cities: 2 The average rate on 90-day Stock Exchange time loans was 1.50 1949—Sept 3.07 4.74 3.79 3.18 2.58 per cent, Aug. 2> 1946-Aug. 16, 1948; and 1.63 per cent beginning Dec 3.03 4.66 3.74 3.12 2.56 Au 4 8 g B R . e a 1 g t 7 e i , n o n 1 n i 9 n 4 g n 8 e . J w u n is e s u 1 e , s 1 o 9 f 5 f 0 er , e s d e ri w es it h in in c lu p d e e ri s o d 9 . - to 12-month notes. 1950— J M un a e r.. ..... 3 3 . . 2 1 2 2 4 4 . .6 7 4 0 3 3 . . 8 7 3 1 3 3 . . 1 1 5 7 2 2 . . 8 7 2 4 Back figures.—See Banking and Monetary Statistics, Tables 120-121, NOTE.—For description of series see BULLETIN for March 1949, pp. 448-459, and BULLETIN for May 1945, pp. 483-490, and October pp. 228-237. 1947, pp. 1251-1253. BOND YIELDS * [Per cent per annum] U. S. Government Corporate (Moody's)4 (taxable) Munic- Corpo- Year, month, or week 15 (h ip ig a h l - (h ra ig te h- By ratings By groups 7 to 9 years grade)2 grade)8 Total years m o o r re Aaa Aa A Baa 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 Number of issues. 1-5 1-8 15 9 120 30 30 30 30 40 40 40 1947 average 1.59 2.25 2.01 2.57 2.86 2.61 2.70 2.87 3.24 2.67 3.11 2.78 1948 average 2.00 2.44 2.40 2.81 3.08 2.82 2.90 3.12 3.47 2.87 3.34 3.03 1949 average 1.71 2.31 2.21 2.65 2.96 2.66 2.75 3.00 3.42 2.74 3.24 2.90 1949—July 1.55 2.27 2.26 2.66 2.98 2.67 2.75 3.03 3.46 2.75 3.29 2.89 August.... 1.49 2.24 2.20 2.60 2.92 2.62 2.71 2.96 3.40 2.70 3.21 2.86 September, 1.65 2.22 2.22 2.59 2.90 2.60 2.69 2.95 3.37 2.68 3.19 2.84 October... 1.72 2.22 2.21 2.59 2.90 2.61 2.70 2.94 3.36 2.68 3.20 2.83 November. 1.70 2.20 2.17 2.56 2.89 2.60 2.68 2.93 3.35 2.67 3.20 2.81 December. 1.68 2.19 2.13 2.55 2.86 2.58 2.67 2.89 3.31 2.65 3.14 2.79 1950—January... 1.70 2.20 2.08 2.54 2.83 2.57 2.65 2.85 3.24 2.63 3.07 2.79 February.. 1.75 2.24 2.06 2.54 2.83 2.58 2.65 2.86 3.24 2.63 3.08 2.78 March 1.78 2.27 2.07 2.55 2.84 2.58 2.66 2.86 3.24 2.64 3.08 2.78 April 1.80 2.30 2.08 2.57 2.84 2.60 2.66 2.86 3.23 2.64 3.08 2.79 May l'8O 2.31 2.07 2.57 2.86 2.61 2.69 2.88 3.25 2.65 3.12 2.81 June 1.83 2.33 2.09 2.59 2.87 2.62 2.69 2.90 3.28 2.66 3.15 2.81 July 1.83 2.34 2.09 2.61 2.90 2.65 2.72 2.92 3.32 2.69 3.19 2.83 Week ending: July 1... 1.86 2.34 2.12 2.60 2.89 2.63 2.70 2.90 3.32 2.67 3.18 2.82 July 8 . . . 1.85 2.34 2.12 2.61 2.91 2.65 2.72 2.92 3.33 2.68 3.21 2.83 July 15.'. . 1.84 2.34 2.12 2.62 2.91 2.66 2.73 2.92 3.33 2.68 3.22 2.84 July 22 . . . 1.83 2.34 2.12 2.62 2.91 2.66 2.73 2.93 3.33 2.70 3.21 2.84 July 29 . . . 1.82 2.34 2.00 2.60 2.89 2.65 2.71 2.91 3.28 2.70 3.14 2.83 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 a limited number of suitable issues, the industrial Aaa and Aa groups have been reduced from 10 to 6 and 7 issues, respectively, and the railroad Aaa and Aa groups from 10 to 5 issues. Back figures.—-See Banking and Monetary Statistics, Tables 128-129, pp. 468-474, and BULLETIN for May 1945, pp. 483-490, and October 1947, pp. 1251-1253. 1040 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SECURITY MARKETS *• Bond prices Stock prices 5 Corporate4 Common (index, 1935-39=100) V of o l t u ra m d e - Year, month, or week U.S. Munic- ing7 (in Gov- ipal Medium-grade Pre- thoum e e rn n - t* g ( r h a i d g e h ) - 3 H gr i a g d h e - Indus- Rail- Public ferred* Total In tr d i u al s- R ro a a i d l- P ut u i b li l t i y c s s a h n a d r s e s o ) f Total trial road utility Number of issues 1-8 15 12 14 15 416 365 20 31 1947 average 103.76 132.8 103.2 97.5 102.6 88.2 102.8 184.7 123 128 105 103 953 1948 average 100.84 125.3 98.7 92.1 96.3 85.4 95.2 168.7 124 131 115 96 1,144 1949 average 102.73 128.9 101.9 92.6 98.6 82.3 97.0 176.4 121 128 97 98 1,037 1949—July 103.29 127.9 102.0 91.8 98.6 79.9 96.9 176.6 118 124 91 95 938 August 103.63 129.1 103.0 92.6 98.2 81.9 97.7 179.5 122 128 94 99 947 September 103.86 128.6 103.1 93.3 99.0 82.1 98.8 182.1 124 130 95 100 1,135 October 103.90 128.8 102.8 93 99.9 82.0 99.2 180.3 127 134 98 101 ,313 November 104.22 129.6 103.2 93 100.3 80.8 99.5 179.8 129 137 96 103 ,323 December 104.36 130.3 103.7 94.5 101.0 82.2 100.1 180.6 133 140 101 104 ,739 1950—January 104.16 131.4 104.0 96.3 101.8 86.4 100.6 182.8 135 143 108 106 ,884 February 103.62 131.7 104.0 96.4 102.0 86.5 100.9 182.4 137 144 107 107 ,704 March 103.24 131.5 104.1 96.6 102.3 86.7 100.8 183.8 139 147 109 110 ,643 April 102.87 131.3 ( () 183.5 142 150 110 111 2,297 May.. . 102.73 131.5 183.1 147 156 110 113 1,763 June 102.42 131.1 182.0 148 158 107 112 2,075 July 102.24 131.1 178.5 138 147 110 103 2,227 Week ending: July 1 102.16 130.5 180.7 143 153 104 108 3,420 July 8 102.24 130.5 178.1 141 150 103 106 1,594 July 15 102.21 130.5 178.1 134 143 105 101 2,592 July 22 102.23 130.5 178.5 139 148 111 103 2,349 July 29 102.28 132.8 179.4 139 148 120 101 2,375 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 or more. * 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 average yields, as computed by Standard and Poor's Corporation. 5 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. 8 Series discontinued beginning Apr. 1, 1950. Back figures.—See Banking and Monetary Statistics, Tables 130, 133, 134, and 136, pp. 475, 479, 482, and 486, respectively, and BULLETIN for May 1945, pp. 483-490, and October 1947, pp. 1251-1253. 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 f i o e d o g n s o t r n d a t - - i ) l c Total S n m a p t i n a c a u d t i l - e - a F c e g i e r e e a d s n l - 1 - Total Co B n r a o p o n n o t d e d r s s ate Stocks e F i o g r n - 2 m T e ( a f e i o d o g n s o r t n d t a - - i ) c l Total S n m a p t i n a c a u d i t l - - e a F c e g i e r e e a d s n l - 1 - Total Co B n r a o p o n n o t d e d r s s ate Stocks e F i o gn r- 2 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 2,169 642 640 176 90 374 282 92 2 1,527 1,442 259 497 685 603 82 86 1944 4,216 913 896 235 15 646 422 224 17 3,303 3,288 404 418 2,466 2,178 288 15 1945 8,006 1,772 1,761 471 26 1,264 607 657 12 6,234 6,173 324 912 4,937 4,281 656 61 1946 8,645 4,645 4,635 952 127 3,556 2,084 1,472 10 4,000 3,895 208 734 2,953 2,352 601 105 1947 39,691 37,566 7,255 2,228 239 4,787 3,567 1,219 68 2,125 1,948 44 422 1,482 1,199 283 177 1948 10,214 9,079 9,070 2,604 294 46,172 45,264 908 10 1,135 1,135 82 768 284 257 28 1949 9,475 7,909 7,880 2,803 233 4,844 3,890 954 29 1,566 1,466 104 943 418 366 52 101 1949—June 1,634 1,540 1,540 315 24 1,201 1,088 113 94 94 1 62 31 30 July 764 684 683 244 9 430 1 382 48 2 79 79 1 56 22 22 August. . . 616 311 293 174 119 66 54 18 304 204 1 195 8 8 1 101 September 749 521 511 314 69 128 84 44 10 228 228 4 181 43 38 5 October. . 787 639 639 234 405 323 82 148 148 4 53 91 69 22 November 521 412 412 229 183 124 59 109 109 22 52 35 35 December. 731 513 513 198 315 169 146 218 218 57 56 105 101 4 1950—January. . 31,185 817 817 233 30 553 463 90 3 369 269 1 159 108 96 12 February. 809 711 708 550 13 146 80 66 3 98 83 6 57 20 19 1 "ii March. . . 1,059 768 746 363 21 361 280 82 22 292 229 3 58 168 165 4 63 April 685 525 520 170 23 327 147 180 5 160 160 6 65 89 80 9 May 1,052 771 769 304 39 426 307 119 2 281 281 14 31 236 231 6 June. 1,285 954 949 334 18 598 429 169 5 330 330 20 35 276 276 1 Includes publicly offered issues of Federal credit agencies, but excludes direct obligations of U. S. Treasury. 2 Includes issues of noncontiguous U. S. Territories and Possessions. 3 These figures for 1947 and for January 1950 include 244 million dollars and 100 million, respectively, of issues of the International Bank for Reconstruction and Development, which are not shown separately. 4 Includes the Shell Caribbean Petroleum Company issue of 250 million dollars, classified as "foreign" by the Chronicle. 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. AUGUST 1950 1041 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NEW CORPORATE SECURITY ISSUES * PROPOSED USES OF PROCEEDS, ALL ISSUERS [In millions of dollars] Proposed uses of net proceeds Year or month E pr s o t g i c r m e o e s a d s te s d 2 E pr s o ti c n m e e e t a d t s e d 3 New money Retirement of securities Repa o y f ment Other Total Plant and Working Total Bonds and Preferred other debt purposes equipment capital notes stock 1936 4,572 4,431 858 380 478 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 6,011 5,902 1,080 638 442 4,555 4,117 438 134 133 1946 6,900 6,757 3,279 2,115 1,164 2,868 2,392 476 379 231 1947. . 6,577 6,466 4,591 3,409 1,182 1,352 1,155 196 356 168 1948 7,078 6,959 5,929 4,221 1,708 307 240 67 488 234 1949 6,052 5,959 4,606 3,724 882 401 360 41 637 315 1949—June 1,286 1,271 1,087 971 116 58 54 4 117 10 July. . 533 526 461 427 35 19 18 1 36 9 August 220 215 164 133 31 18 17 1 29 5 September. . .. . 272 268 163 109 54 39 19 20 22 43 October 413 407 260 214 46 61 58 3 37 49 November 332 327 270 159 111 17 17 24 16 December 574 565 331 223 108 113 111 2 37 83 1950—January 614 605 453 405 48 52 39 12 53 48 February 259 255 190 130 60 33 30 3 13 18 March 547 538 371 242 129 139 138 1 11 17 April ••490 '480 '344 '•295 r49 '50 r36 14 '76 '9 May '669 ••658 '306 '212 '94 '204 '164 40 137 11 June 1,069 1,055 625 451 174 317 311 5 65 49 PROPOSED USES OF PROCEEDS, BY MAJOR GROUPS OF ISSUERS * [In millions of dollars] Manufacturing 6 C m o i m sc m el e l r a c n ia e l o u a s n 6 d Railroad Public utility7 Communication8 a R n e d a l f in es a t n a c t i e al Year or month Total Total Total Total Total Total net New Retire- net New Retire- net New Retire- net New Retire- net New Retire- net New Retirepro- money ments10 pro- money ments10 pro- money ments10 pro- money ments10 pro- money ments10 pro- money ments10 ceeds9 ceeds9 ceeds9 ceeds9 ceeds9 ceeds9 1936 1,280 439 761 774 139 558 1,987 63 1,897 390 218 152 1937 1,079 616 373 338 228 110 751 89 611 71 57 7 1938 831 469 226 54 24 30 1 208 180 943 16 8 7 1939 584 188 353 182 85 97 l]246 43 1,157 102 9 88 1940 961 167 738 319 115 186 1,180 245 922 155 42 9 1941 828 244 463 361 253 108 1,340 317 993 94 55 18 1942 . 527 293 89 47 32 15 464 145 292 4 4 1943 497 228 199 160 46 114 469 22 423 21 13 4 1944 . 1,033 454 504 602 102 500 1,400 40 1,343 107 61 42 1945 1,969 811 1,010 1,436 115 1,320 2,291 69 2,159 206 85 65 1946 . 3,601 2,201 981 704 129 571 2,129 785 1 252 323 164 64 1947 2,686 1,974 353 283 240 35 3,212 2,188 939 286 189 24 1948 2,180 1,726 54 403 304 21 617 546 56 2 281 1,998 145 891 870 2 587 485 30 1949 1,391 851 44 338 229 28 456 441 11 2,615 2,140 234 567 505 49 593 440 35 1949—June 166 77 1 35 23 4 45 45 549 490 39 386 386 91 67 14 July 202 175 1 11 9 51 51 197 192 2 26 24 39 10 15 August 44 22 26 19 20 13 7' 107 103 1 11 1 10 6 6 September 26 20 4 55 27 8 16 16 109 76 27 4 2 58 23 October 83 41 16 38 30 41 41 222 130 45 13 11 11 6 D N e o c v e e m m b b e e r r 3 6 6 3 2 4 4 9 5' 2 3 5 6 23 6 1 2 3' 3 1 1 0 2 1 7 0 4' 3 1 4 4 6 9 1 15 2 9 5 9 4 6 1 4 6 1 4 4 9 8 2 5 9 7 0 0 6" 1950—January 31 27 2 31 25 3 93 27 31 225 165 14 205 202 2 20 6 February 63 47 4 25 21 13 13 130 98 29 23 11 March 49 38 10 16 15 107 85 22 217 141 58 18 18 132 75 50 April '34 '24 1 '33 6 '31 '27 '273 '228 '40 23 22 '86 '22 2 May '186 '80 7 '29 '19 1 '69 '39 ""36 '331 '129 '165 '13 '13 '31 June 169 109 36 45 20 11 74 15 40 575 385 161 64 3 60 127 92 8 ' Revised. l Estimates of new issues sold for cash in the United States. 2 Gross proceeds are derived by multiplying principal amounts or number of units by offering price. 3 Estimated net proceeds are equal to estimated gross proceeds less cost of flotation, i.e., compensation to underwriters, agents, etc., and expenses. 4 Classification for years 1934-1947 are not precisely comparable, with those beginning 1948, but they are believed to be sufficiently similar for broad comparisons. See also footnotes 5 through 8. 5 Prior to 1948 this group corresponds to that designated "Industrial" in the old classification. 6 Included in "Manufacturing" prior to 1948. 7 Includes "Other transportation" for which separate figures are available beginning in 1948. 8 Included in "Public utility" prior to 1948. 9 Includes issues for repayment of other debt and for other purposes not shown separately. 10 Retirement of securities only. 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. 1042 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SALES, PROFITS, AND DIVIDENDS OF LARGE CORPORATIONS MANUFACTURING CORPORATIONS [In millions of dollars] Assets of 10 million dollars and over Assets of 50 million dollars and over Assets of 10-50 million dollars (200 corporations) (82 corporations) (118 corporations) Year or quarter Sales P b t r e a o f x o f e i r t s e s P t a r a f o x t f e e i r s ts d D e i n v d i- s Sales P b t r e a o f x o f e i r s t e s P t a r a f o x t f e e i r t s s d D e i n v d i- s Sales P b t r e a o f x o f e i r t s e s P t a r a f o x t f e e i r t s s d D e i n v d i- s Annual 1939 10,591 1,209 997 722 9,008 1,071 883 656 1,583 139 114 67 1940 13,006 1,844 1,273 856 11,138 1,638 1,127 772 1,869 206 146 83 1941 18,291 3,156 1,519 947 15,691 2,778 1,329 854 2,600 378 190 93 1942 21,771 3,395 1,220 760 18,544 2,876 1,056 672 3,227 519 164 88 1943 28,240 3,683 1,260 777 24,160 3,111 1,097 688 4,080 571 164 88 1944 30,348 3,531 1,255 848 25,851 2,982 1,091 755 4,497 549 164 93 1945 26,531 2,421 1,129 861 22,278 1,976 964 764 4,253 445 165 98 1946 21,562 2,033 1,202 943 17,651 1,573 932 804 3,912 460 271 139 1947 31,144 4,099 2,521 1,167 26,015 3,423 2,105 1,000 5,129 676 416 167 1948 37,182 5,315 3,310 1,403 31,465 4,593 2,860 1,210 5,717 721 450 192 1949 36,942 5 035 3,099 1,657 31,816 4,506 2,768 1,474 5,124 529 330 183 Quarterly 1948—1 8,660 1,218 751 285 7,270 1,050 649 247 1,390 168 102 38 2 9,003 L,242 770 311 7,559 1,058 657 269 1,445 184 113 42 3 9,314 1,331 832 307 7,877 1,146 717 265 1,437 186 115 43 4 10,204 1,523 958 499 8,759 1,339 83S 429 1,445 184 120 70 1949—1 9,392 :1,326 808 343 8,085 1,187 723 "303 1,307 139 84 40 2 9,446 L ,196 726 354 8,192 1,077 653 312 1,254 119 73 42 3 9,485 1,312 799 331 8,213 1,183 717 292 1,273 129 82 39 4 8,617 L 201 766 629 7,326 1,059 675 567 1,291 142 91 62 1950—i 9,220 1,403 852 387 7,893 1,255 759 347 1,327 148 92 40 PUBLIC UTILITY CORPORATIONS [In millions of dollars] Railroad Electric power Telephone Year or quarter O re p v in e e r g n a u t e - P b t r e a o f x o f e i r s t e s P t a r a f o x t f e e i r s ts 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 - P b t r e a o f x o f e i r s t e s P t a r a f o x t f e e i r s ts d D e i n v d i- s r O e p v i e n e r n g a u t e - P b t r e a o f x o f e i r t s e s P t a r a f o x t f e e i r s ts d D e i n v d i- s Annual 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 3,464 913 502 410 1,537 374 180 168 1944 9,437 1,972 667 246 3,615 902 507 398 1,641 399 174 168 1945 8,902 756 450 246 3,681 905 534 407 1,803 396 177 174 1946 7,628 271 287 235 3,815 964 638 458 1,992 277 200 171 1947 8,685 777 479 236 4,291 954 643 494 2,149 193 131 134 1948 9,672 1,148 699 289 4 830 983 657 493 2 541 269 183 181 1949 8,580 700 438 252 5,047 1,129 753 558 2,817 332 220 216 Quarterly 1948—1 2,243 146 73 57 1,233 282 184 124 607 65 44 39 2. 2,363 286 186 57 1,152 231 154 115 627 71 48 44 3 2,555 393 244 53 1,178 211 143 121 641 64 44 47 4 2,510 317 191 122 1,267 254 174 133 667 69 47 50 1949—i 2,147 119 58 69 1,312 316 206 124 670 62 42 50 2 2,226 183 115 55 1,223 272 180 136 695 75 50 51 3. 2,140 174 104 50 1,223 259 173 142 711 84 55 54 4 2,066 224 161 78 1,289 281 195 157 741 111 72 61 1950—l, 1,985 109 51 61 1,376 351 230 146 749 114 74 63 NOTE.—Manufacturing corporations. Data are from published company reports, except sales for period beginning 1946, which are from reports of the Securities and Exchange Commission. For certain items, data for years 1939-44 are partly estimated. Assets are total assets as of the end of 1946. Railroads. Figures are for Class I line-haul railroads (which account for 95 per cent of all railroad operations) and are obtained from reports of the Interstate Commerce Commission. Electric power. Figures are for Class A and B electric utilities (which account for about 95 per cent of all electric power operations) and are obtained from reports of the Federal Power Commission, except that quarterly figures on operating revenue and profits before taxes are partly estimated by the Federal Reserve, to include affiliated nonelectric operations. Telephone. Figures are for 30 large companies (which account for about 85 per cent of all telephone operations) and exclude American Telephone and Telegraph Company, the greater part of whose income consists of dividends received on stock holdings in the 30 companies. Data are obtained from the Federal Communications Commission, except for dividends, which are from published company reports. All series. Profits before taxes refer to income after all charges and before Federal income taxes and dividends. For description of series and back figures, see pp. 662-666 of the BULLETIN for June 1949 (manufacturing); pp. 215-217 of the BULLETIN for March 1942 (public utilities); p. 1126 of the BULLETIN for November 1942 (telephone); and p. 908 of the BULLETIN for September 1944 (electric power). AUGUST 1950 1043 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SALES, PROFITS, AND DIVIDENDS OF LARGE MANUFACTURING CORPORATIONS, BY INDUSTRY [In millions of dollars] Annual Quarterly Industry 1948 1949 1950 1947 1948 1949 1 2 3 4 1 2 3 4 1 Nondurable goods industries Total (94 corps.)1 Sales . 11 313 13 364 1? 790 3,?19 3 ?89 3 3?4 3, 53? 3,243 3,051 3,163 3 333 3 ?51 1 787 ? ?08 1 843 546 553 543 565 496 397 446 503 505 Profits after taxes ... 1,167 i 474 1 911 356 36? 36? 394 321 256 292 342 3?3 Dividends SS1 656 708 133 157 141 ?,?5 146 166 147 ?49 166 Selected industries: Foods and kindred products (28 corps.) Sales 3 9^1 3 447 3 ?54 835 861 846 904 805 79? 8?? 835 755 Profits before taxes 421 410 377 96 104 99 111 85 89 101 102 83 Profits after taxes ?59 957 ?33 61 64 60 71 5? 54 63 64 51 Dividends. . . 1?8 13S 134 ?9 3?, 3? 4? 30 31 ?9 44 31 Chemicals and allied products (26 corps.) Sales 3,108 3,563 3, W 848 875 904 936 896 860 896 910 95? Profits before taxes 547 655 673 1 SI 1 SS 166 183 170 140 174 189 ?06 337 408 403 91 95 104 119 100 83 105 115 199 Dividends ?15 ?54 311 S3 58 59 85 64 66 68 113 7? Petroleum refining (14 corps.) Sales. ?,906 3 945 3 86 5 947 94? 978 1 077 993 934 94? 996 960 Profits before taxes 456 721 525 195 182 171 173 161 119 114 131 121 Profits after taxes 350 548 406 141 133 13? 141 119 9? 86 109 91 Dividends 1?7 17? 17? 33 45 79 66 31 47 31 63 4? Durable goods industries Total (106 corps.)2 Sales . . ... 19,831 ,818 ?4 15? 5,440 5,714 5,991 6,673 6,149 6,397 6,322 5,284 5 969 Profits before taxes ?,31? 3,107 3 1Q? 67? 688 788 958 830 799 866 697 898 Profits after taxes 1,355 l,836 1,888 395 408 470 564 487 470 508 424 529 Dividends ... 615 746 949 152 154 166 274 197 188 184 380 220 Selected industries: Primary metals and products (39 corps.) Sales . . ... 7,545 9,066 8,197 ?,060 ?,100 ?,306 ?,601 9,430 9,175 9,050 1,542 ?,?06 Profits before taxes 801 1,174 993 ?48 ?37 304 385 353 9 5? ??8 160 ?99 Profits after taxes 545 720 578 150 145 185 240 204 144 130 100 175 Dividends ?47 ?70 ?85 60 60 60 90 71 64 61 89 66 Machinery (27 corps.) Sales 3,963 4,781 4,610 1,091 1,198 1,140 1,351 1,135 1,187 1,120 1,168 1,064 Profits before taxes 443 569 5?0 131 144 118 177 133 120 119 148 147 Profits after taxes ?70 334 3?1 75 83 71 105 79 77 75 91 86 Dividends . . 113 1?6 136 ?7 ?8 ?8 4? 33 32 31 41 49 Automobiles and equipment (15 corps.) Sales 6,692 8,093 9,577 1,865 1,951 2,056 2,221 2,151 2,601 2,707 2,118 2,283 Profits before taxes 809 1,131 1,473 ?47 ?51 305 3?7 298 376 462 337 398 Profits after taxes . 445 639 861 142 146 175 176 177 218 267 200 ?34 195 282 451 53 51 65 112 79 76 80 216 90 1 Total includes 26 companies in nondurable goods groups not shown separately, as follows: textile mill products (10); paper and allied products (15); and miscellaneous (1). 2 Total includes 25 companies in durable goods groups not shown separately, as follows: building materials (12); transportation equipment other than automobile (6); and miscellaneous (7). CORPORATE PROFITS, TAXES, AND DIVIDENDS (Estimates of the Department of Commerce. Quarterly data at seasonally adjusted annual rates) [In billions of dollars] Year P b t r e a o f x o f e i r t s e s In ta c x o e m s e P t a r a f o x t f e e i r t s s d C d e i a n v s d i h - s tr U p i r b n o u d fi t i t e s s - d Quarter P b t r e a o f x o f e i r t s e s In ta c x o e m s e P t a r a f o x t f e e i r t s s d C d e i a n v s d i h - s tr U p i r b n o u d f t i i t e s s - d 1939 6.5 1.5 5.0 3.8 1.2 1948—2 34.6 13.2 21.4 7.3 14.1 1940 9.3 2.9 6.4 4.0 2.4 3 35.3 13.4 21.9 7.5 14.4 1941 17.2 7.8 9.4 4.5 4.9 4 33.1 12.9 20.3 7.9 12.4 1942 21.1 11.7 9.4 4.3 5.1 1943 25.1 14.4 10.6 4.5 6.2 1949—1 28.3 10.9 17.4 7.9 9.5 1944 24.3 13.5 10.8 4.7 6.1 2 26.4 10.0 16.4 7.7 8.7 1945 19.7 11.2 8.5 4.7 3.8 3 28.2 10.8 17.3 7.4 9.9 1946 23.5 9.6 13.9 5.8 8.1 4.... 27.6 10.6 16.9 8.2 8.7 1947 .. 30.5 11.9 18.5 6.6 11.9 1948 33.9 13.0 20.9 7.5 13.4 1950—1 29.2 11.4 17.8 8.1 9.7 1949 27.6 10.6 17.0 7.8 9.2 2i '32.0 12.5 19.5 '8.1 11.4 »• Revised. 1 Figures, except for cash dividends, are estimates of Council of Economic Advisers, based on preliminary data. Source.—Same as for national income series. 1044 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] Total Direct debt g d r e o b s t s Marketable public issues * Nonmarketable public issues Fully End of month in ( a s i g n e n t i c c t e g e u l s u u e r ) d i a d - - r- Total Total 2 Tre b a il s l u s ry c i C e n a d e d te n r e t s e i b f s o t i s - - f Tr n e o a t s e u s ry Tr b e o a n s d u s ry Total * s b a U o v . n i S n d 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 ec u t u e a e r r i a d t n ie - s 1943—Dec. 170,108 165,877 115,230 13,072 22,843 11,175 67,944 36,574 27,363 8,586 12,703 1,370 4,230 1944—June 202,626 201,003 140,401 14,734 28,822 17,405 79,244 44,855 34,606 9,557 14,287 1,460 1,623 Dec 232,144 230,630 161,648 16,428 30,401 23,039 91,585 50,917 40,361 9,843 16,326 1,739 1,514 1945—June 259,115 258,682 181,319 17,041 34,136 23,497 106,448 56,226 45,586 10,136 18,812 2,326 433 Dec 278,682 278,115 198,778 17,037 38,155 22,967 120,423 56,915 48,183 8,235 20,000 2,421 567 1946—June 269,898 269,422 189,606 17,039 34,804 18,261 119,323 56,173 49,035 6,711 22,332 1,311 476 Dec. , . .259,487 259,149 176,613 17,033 29,987 10,090 119,323 56,451 49,776 5,725 24,585 1,500 339 1947—June. ... 258,376 258,286 168,702 15,775 25,296 8,142 119,323 59,045 51,367 5,560 27,366 3,173 90 Dec 256,981 256,900 165,758 15,136 21,220 11,375 117,863 59,492 52,053 5,384 28,955 2,695 81 1948—June 252,366 252,292 160,346 13,757 22,588 11,375 112,462 59,506 53,274 4,394 30,211 2,229 73 Dec. . . . 252,854 252,800 157,482 12,224 26,525 7,131 111,440 61,383 55,051 4,572 31,714 2,220 55 1949—June..... 252,798 252,770 155,147 11,536 29,427 3,596 110,426 62,839 56,260 4,860 32,776 2,009 27 1949—July . 253,902 253,877 154,959 11,531 29,246 3,596 110,426 63,872 56,453 5,705 33,049 1,996 26 Aug 255,879 255,852 155,552 12,124 29,246 3,596 110,426 65,011 56,537 6,768 33,358 1,931 27 Sept 256,709 256,680 155,647 12,315 30,441 3,596 109,133 65,195 56,600 6,897 33,914 1,923 29 Oct 256,805 256,778 155,362 12,317 30,155 3,596 109,133 65,705 56,670 7,345 33,810 1,901 28 Nov 257,011 256,982 155,365 12,320 30,155 3,596 109,133 65,929 56,717 7,527 33,829 1,858 29 Dec 257,160 257,130 155,123 12,319 29,636 8,249 104,758 66,000 56,707 7,610 33,896 2,111 30 1950—Jan 256,892 256,865 154,833 12,331 29,314 8,271 104,758 66,533 56,958 7,906 33,502 1,997 27 Feb 256,395 256,368 154,764 12,336 27,321 10,189 104,758 66,771 57,217 7,988 32,871 1,962 27 Mar, 255,747 255,724 154,479 12,334 24,399 14,791 102,795 66,928 57,331 8,040 32,098 2,218 24 Apr 255,740 255,718 154,601 12,623 23,437 15,586 102,795 67,114 57,427 8,133 31,802 2,202 22 May 256,370 256,350 155,001 13,023 23,437 15,586 102,795 67,314 57,477 8,292 31,868 2,167 20 June.... 257,377 257,357 155,310 13,533 18,418 20,404 102,795 67,544 57,536 8,472 32,356 2,148 20 July 257,557 257,541 155,168 13,642 12,817 25,755 102,795 67,717 57,568 8,629 32,518 2,138 16 1 Including amounts held by Government agencies and trust funds, which aggregated 5,350 million dollars on June 30, 1950. 2 Total marketable public issues includes Postal Savings and prewar bonds, and total nonmarketable public issues includes adjusted service depositary bonds, Armed Forces Leave bonds, and 2^ per cent Treasury investment bonds, series A-1965, not shown separately. Back figures.—See Banking and Monetary Statistics, Tables 146-148, pp. 509-512. UNITED STATES GOVERNMENT MARKETABLE PUBLIC UNITED STATES SAVINGS BONDS SECURITIES OUTSTANDING JULY 31, 1950 [In millions of dollars] [On basis of daily statements o o f f d U o n ll i a te rs d ] States Treasury, In millions Amount Funds received from sales during t R io e n d s e m an p d out- maturities Month standing Issue and coupon rate Amount Issue and coupon rate Amount at end of month All Series Series Series All series E F G series Treasury bills 1 Treasury bonds—Cont. Aug. 3,1950.. 1,102 Sept. 15, 1951-552 3 755 Fiscal year Aug. 10, 1950.. 1,103 Dec. 15, 1951-532 '" ' 1,118 ending: Aug. 17, 1950.. 1,104 Dec. 15, 1951-55. 510 June—1943.. 21,256 11 789 8 271 758 2 759 848 Aug. 24, 1950.. 1,103 Mar. 15, 1952-54. 1,024 1944.. 34,606 15 498 11 820 802 2 876 2,371 Aug. 31, 1950.. 1,004 June 15, 1952-54. 5,825 1945.. 45,586 14 891 11 553 679 2 658 4,298 Sept. 7, 1950.. 1,102 June 15, 1952-55. 1,501 1946.. 49,035 9 612 6 739 407 2 465 6,717 S S S O O e e e c c p p p t t . . t t t . . . 2 2 1 1 8 1 4 5 3 , , , , , 1 1 1 1 1 9 9 9 9 9 5 5 5 5 5 0 0 0 0 0 . . . . . . . . . . 1 1 1 1 1 , , , , , 0 0 0 0 0 0 0 0 0 0 6 4 3 3 3 J J D M M u u e n n a a c r 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 4 3 5 6 2 - - - - - 5 5 6 5 5 6 5 0 8 4 2 2 2 . . 8 2 1 , , , 6 6 6 4 7 1 4 8 6 2 1 9 1 5 2 1 1 1 1 9 9 9 9 4 4 5 4 8 7 0 9 . . . . . . . . 5 5 5 5 7 1 3 6 , , , , 3 2 5 2 6 7 3 6 7 4 6 0 6 5 7 7 2 2 6 1 3 0 7 4 5 8 3 1 3 4 4 4 0 2 2 9 2 8 7 9 6 7 8 3 3 2 3 4 6 3 0 7 0 1 1 3 2 2 1 1 9 3 5 4 0 9 6 4 7 0 1 9 5 5 5 5 , , , , 1 5 0 4 1 4 6 2 3 5 7 2 C O J S O O e a e c r c c n p t t t t . . , t . . o 2 1 1 f 6 1 5 1 9 , , , , , i 1 1 n 1 1 1 9 9 d 9 9 9 5 5 5 e 5 5 0 1 0 b 0 0 . t . . . ednes 1 l i s ' H H y8 6 5 1 1 1 , , , , , 1 2 0 0 3 9 0 0 4 7 7 4 1 8 3 J S S J J D D J D J S D D M M u u u u u e e e e e e e e a n n n n a n p p p c c c c c r r e e e e e t t t . . . . . . . . . . 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 , , , , , , , , , , , , , , , 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 5 6 6 6 5 6 6 6 5 6 6 5 6 6 5 5 2 6 9 7 0 8 4 9 7 6 4 3 7 6 - - - - - - - - - - - - - - 7 6 7 - 6 6 7 6 6 7 6 5 6 6 7 5 0 7 1 2 5 2 9 2 2 3 9 9 8 2 9 3 3 3 3 2 3 3 3 3 2 2 3 3 . . . . . . 2 2 } \ 1 3 3 5 3 2 2 3 3 5 2 7 1 1 , , , , , , , , , , , , , 4 8 7 1 7 1 9 9 8 4 4 8 2 9 6 8 3 6 8 9 1 1 2 1 8 8 6 7 3 8 1 1 1 5 7 6 8 9 2 3 9 0 7 8 4 1 19 9 5 4 0 9 — — N O J J S D A A F M M J J a u u e e u c o p u e n a a n l p b g t v r l c y r y e t . y . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 5 5 5 5 5 5 5 5 5 5 5 7 7 7 7 6 6 7 7 6 6 6 6 6 , , , , , , , , , , , , , 4 3 5 5 7 7 2 4 6 9 5 4 6 7 1 0 1 2 3 3 6 3 7 5 0 5 7 7 7 7 7 1 6 8 7 0 8 0 3 4 3 3 4 3 4 3 4 5 4 5 5 7 4 1 9 8 9 1 9 8 2 2 8 0 1 9 7 8 3 8 6 5 8 4 3 1 7 1 3 3 2 3 3 3 2 2 3 3 3 4 2 2 7 9 7 8 0 0 8 6 6 0 1 9 9 8 9 7 9 7 5 6 1 4 2 8 7 3 1 3 2 1 1 1 1 1 1 1 1 1 8 6 1 7 7 3 3 4 6 3 5 6 4 2 1 1 1 1 1 1 8 8 8 6 0 0 1 9 8 8 0 8 3 6 6 4 7 4 3 5 2 6 7 2 9 4 4 4 3 4 4 4 6 4 5 4 4 4 5 1 9 6 2 1 3 1 5 1 1 5 1 0 5 6 6 5 1 9 8 4 0 8 6 3 5 Treasury notes July 1, 1951-B....1M 2,741 Maturities and amounts outstanding July 31, 1950 July 1, 1951-C....1M 886 July 1, 1951-D. . AH 4,818 Postal Savings Year of All Series Series Series Series Aug. 1,1951 \H 5,351 bonds 2^ 109 maturity series D E F G Oct. 1,1951 \H 1,918 Mar. 15, 1954 1% 4,675 1950 407 407 Mar. 15, 1955 \y2 5,365 Panama Canal Loan. 3 50 1 19 9 5 5 2 1 3 1 , ,5 9 5 4 7 0 443 3 1 , ,1 9 1 4 4 0 Total direct issues 155,168 1 1 9 9 5 5 3 4 .... 6 8 ,7 5 0 5 4 5 5 6 ,4 0 6 8 6 2 5 1 0 9 0 8 1 1 , 0 9 4 7 0 3 Treasury bonds 1955 7,409 4,852 528 2,029 Sept. 15, 1950-522*.2^ 1,186 1956 5,464 2,503 607 2,353 J S D u e e n p c e t . . 1 1 1 5 5 5 , , , 1 1 1 9 9 9 5 5 5 0 1 0 - - 5 5 4 2 2 . . . . . 2 1 2 V ^ 2 4 2 1 , , ,6 9 6 2 3 3 7 9 5 G F u e a d r e a ra n l t e H e o d u si s n e g c A ur d i m ti i e n s . 1 1 1 9 9 9 5 5 5 7 8 9 . ... 5 5 5 , , , 5 2 4 0 5 8 0 6 4 2 2 3, , , 2 9 6 1 5 3 8 9 3 4 2 2 8 6 8 4 4 6 2 2 1 , , , 1 9 2 8 3 7 1 9 7 Sept. 15, 1951-53... 2 7,986 Various. ............. 13 I960 4,777 1,904 463 2,410 1961 1,613 228 1,385 1962 1,001 140 861 1 Sold on discount basis. See table on Open-Market Money Rates, Unclassified. . -101 p. 1040. 2 Partially tax exempt. 3 Restricted. Total.... 57,568 850 34,672 3,698 18,450 4 Called for redemption on Sept. 15, 1950. AUGUST 1950 1045 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OWNERSHIP OF UNITED STATES GOVERNMENT SECURITIES, DIRECT AND FULLY GUARANTEED [Par value in millions of dollars} Total Held by Held by the public gross U. S. Government debt agencies and End of month i ( n s a i g t e n n i c c e t g u e l s u u ) e r d i a d - - r- S i p ss e t u r c e u ia s s l t fun P d is s u s b u * l e i s c Total R F B e e a d s n e e r k r v a s e l m b C a e o n rc m k i s a - 2 l M s b a a v u n i t n u k g a s s l p I c n a o s n m u ie r - - s a c n r i c O a a d o t t t i r i h a o p o s e n o n s r s - s o 3 - g m S o l a o v t e n c a e n d a t r t e l n s - vi I d n u d a i- ls 1940-—June 48,496 4,775 2,305 41,416 2,466 16,100 3,100 6,500 2,500 400 10,300 1941—June 55,332 6,120 2,375 46,837 2,184 19,700 3,400 7,100 2,400 600 11,500 1942—June 76,991 7,885 2,737 66,369 2,645 26,000 3,900 9,200 5,400 900 18,400 1943—June. . 140,796 10,871 3,451 126,474 7,202 52,200 5,300 13,100 15,500 1,500 31,700 1944—June 202,626 14,287 4,810 183,529 14,901 68,400 7,300 17,300 25,900 3,200 46,500 1945—Tune 259,115 18,812 6,128 234,175 21,792 84,200 9,600 22,700 30,900 5,300 59,800 1946—June 269,898 22,332 6,798 240,768 23,783 84,400 11,500 25,300 25,300 6,500 64,100 Dec 259,487 24,585 6,338 228,564 23,350 74,500 11,800 25,300 22,400 6,300 64,900 1947—June 258,376 27,366 5,445 225,565 21,872 70,000 12,100 25,000 22,300 7,100 67,100 Dec 256,981 28,955 5,397 222,629 22,559 68,700 12,000 24,300 21,200 7,300 66,600 1948—June 252 366 30,211 5,538 216,617 21,366 64,600 12,000 23,200 20,700 7,800 67,000 Dec 252,854 31,714 5,603 215,537 23,333 62,500 11,500 21,500 21,400 7,900 67,600 1949—June 252,798 32,776 5,498 214,524 19,343 63,000 11,600 20,900 22,700 8,000 68,900 Dec 257,160 33,896 5,450 217,814 18,885 66,800 11,400 20,500 22,600 8,100 69,500 1950—Feb 256,395 32,871 5,494 218,030 17,746 66,400 11,500 20,600 23,500 8,200 70 000 Mar 255,747 32,098 5,510 218,139 17,592 64,900 11,600 20,600 24,600 8,700 70,200 255,740 31,802 5,506 218,432 17,796 65,300 11,600 20,500 24,200 8,700 70,300 256,370 31,868 5,487 219,015 17,389 65,800 11,600 20,400 24,700 8,700 70,500 1 Including the Postal Savings System. 2 Including holdings by banks in territories and insular possessions, which amounted to 300 million dollars on December 31, 1949. 8 Including savings and loan associations, dealers and brokers, and investments of foreign balances and international accounts in this country. NOTE.—Holdings of Federal Reserve Banks and U. S. Government agencies and trust funds are reported figures; holdings of other investor groups are estimated by the Treasury Department. SUMMARY DATA FROM TREASURY SURVEY OF OWNERSHIP OF SECURITIES ISSUED OR GUARANTEED BY THE UNITED STATES * [Interest-bearing public marketable securities. In millions of dollars] U. S. U. S. End of month s T t o i a o u n n t g t a d - l - G a t a c r g o u i n e e v d s n s t t - . s B F e R e a e r r e a n d v - l k - e s b C m c a o i n e a m k r l - s - 1 b M s i t a n u a n g v u a k s l - - s p I c a n a o n s n m c u i e e - r s - Other End of month s T t o i a o n u n t g t a d - l - G a t a c r g o u i n e e v d s n s t t - . s B F e R e a e r r e a n d v - l k - e s b C m a c o n i e a m k r l - s - * b M s t i a n u a n g v u a k s l - - s p I c a n a o n s n m c u i e e - r s - Othei funds funds Type of Treasury bonds security: and notes, due or callable: Total:2 Within 1 year: 1 1 1 9 9 9 4 4 4 7 8 9 — — — D D D J J e e e u u c c c n n e e . . . . . . . . 1 1 1 1 1 6 5 5 5 6 5 5 7 5 0 , , , , , 7 1 4 1 3 9 6 9 3 7 1 0 6 8 3 5 5 5 5 5 , , , , , 2 4 4 3 3 6 0 7 2 7 1 2 7 7 4 2 2 2 1 1 1 2 3 9 8 , , , , , 3 5 3 3 8 6 5 3 4 8 6 9 3 3 5 5 5 6 5 5 6 9 7 5 1 , , , , , 2 8 5 3 3 3 5 9 5 7 7 6 9 3 0 1 1 1 1 1 0 1 1 1 0 , , , , , 5 5 7 8 0 5 2 7 7 2 2 2 2 7 9 2 2 1 1 1 1 2 8 9 9 , , , , , 7 8 5 8 0 0 9 3 1 9 5 5 5 9 0 4 4 4 4 4 4 2 1 2 2 , , , , , 0 7 6 7 1 8 3 7 6 5 7 7 9 3 4 1 1 1 9 9 9 4 4 4 7 8 9 — — — D D D J J u e e e u n c c c n e e.... 1 1 1 1 1 1 4 0 3 4 , , , , , 2 3 2 4 2 2 1 1 1 6 6 9 6 1 3 9 4 3 6 1 8 9 6 9 9 2 1 , ,6 0 8 9 8 9 7 8 6 7 3 0 2 1 8 5 9 8 5 7 , , , , , 5 0 0 9 2 7 1 2 2 4 1 4 1 2 4 2 2 2 2 1 3 3 3 6 7 2 6 8 6 1 3 3 4 3 2 8 2 6 1 7 5 9 8 6 3 2 3 3 3 4 , , , , , 1 5 6 6 9 2 8 5 7 5 5 3 5 6 5 1950—Apr. . . . 154,616 5,381 17,79658,548 10,891 18,46543,535 May.... 155,016 5,362 17,38959,118 10,881 18,30743,959 1950—Apr. . . . 8,761 21 463 5,620 142 300 2,215 Treasury bills: May.... 8,761 21 463 5,646 134 306 2,191 1947—Dec 15,136 18 11,433 2,052 25 154 1,454 1948—June 13,757 15 8,577 2,345 58 112 2,650 1-5 years: Dec 12,224 69 5,487 2,794 50 84 3,740 1947—Dec 49,948 344 1,377 33,415 1,876 3,046 9,890 1949—June 11,536 63 4,346 2,817 13 60 4,237 1948—June.... 46,124 318 2,63630,580 1,829 2,790 7,971 Dec 12,319 11 4,829 3,514 15 70 3,880 Dec 44,053 226 3,25828,045 1,769 2,501 8,254 1950—A M p a r y . . . . 1 1 3 2 , , 0 6 2 2 3 3 .1 3 5 2 4 4 , , 0 3 6 6 9 8 3 2 , , 1 7 7 3 4 2 3 2 6 1 1 6 0 7 3 5 5 , , 6 3 7 5 7 2 1949— D Ju e n c e 3 35 9 , , 0 1 6 7 7 5 2 1 1 8 2 6 2 1 , ,9 1 2 2 2 12 24 6 , , 9 3 0 0 7 4 1 1 , , 1 27 2 9 1 2 1 , ,6 1 4 2 1 4 5 7 , ,1 2 3 9 5 0 Ce 1 1 rt 9 9 i 4 4 fi 7 8 c — — ate D Ju s e : n c e 2 2 1 2 , , 2 5 2 8 0 8 3 1 0 4 4 6 , , 6 7 1 9 6 7 6 8, , 5 5 5 3 2 8 2 31 0 7 0 2 47 6 9 9 8 7 , , 6 3 1 8 0 6 1950— M Ap a r y . . . . 4 4 8 8 , , 6 6 1 1 1 1 3 37 8 9 1 3 3 , , 1 3 6 0 4 1 3 3 2 2 , , 9 9 1 3 7 8 1 1 , ,0 0 5 8 2 7 1 1 , , 8 7 8 7 3 5 9 9 , , 1 1 7 6 9 6 Dec 26,525 24 6,078 9,072 256 672 10,423 1949— D J e u c ne.... 2 2 9 9 , , 4 6 2 3 7 6 2 4 6 8 6 6 , , 8 2 5 7 7 5 1 9 1 , , 5 5 6 2 1 0 2 1 0 6 7 9 6 6 0 3 2 3 1 1 2 0 , , 1 9 7 9 4 1 o— 1 1 9 9 IU 4 4 7 8 y — — ea D J r u e s n . c e 1 10 0 , , 4 2 6 7 4 0 3 3 1 7 4 0 5 4 4 2 6 6 6 6, , 2 0 5 9 1 0 5 5 7 0 6 6 9 8 1 8 1 0 1 1 , , 9 9 3 2 6 8 1950—Apr. . . . 23,437 14 5,766 7,712 144 509 9,292 Dec 10,464 314 434 6,314 520 997 1,885 May 23,437 13 5,875 7,723 124 506 9,196 1949—June.... 15,067 532 584 6,587 2,002 1,732 3,630 Treasury notes: Dec 18,537 568 1,388 6,995 2,640 2,230 4,716 1947—Dec 11,375 4 1,477 5,327 98 245 4,224 1948—June.... 11,375 1,968 4,531 98 223 4,555 1950—Apr. . . . 15,926 423 1,152 5,499 2,575 2,136 4,141 Dec 7,131 7 791 3,099 84 166 2,984 May 15,926 423 1,152 5,536 2,524 2,128 4,163 1949—June.... 3,596 47 359 1,801 41 104 1,244 Dec 8,249 15 562 5,569 107 244 1,752 After 10 years: Tre 1 1 1 a 9 9 9 s 5 4 4 u 0 7 8 r — — — y A M D J b u p e o a n r c n e . y d . . s . : . . . . 1 1 1 1 1 1 5 5 2 7 , , , , 5 4 5 8 6 8 8 6 2 6 6 3 5 5 , , 1 3 7 3 3 3 3 6 1 1 2 6 1 1 , , , , 5 6 2 8 0 4 0 5 7 4 6 34 4 9 9 2 7 , , , , 7 8 1 4 3 4 0 2 6 6 0 4 1 11 1 , , . 0 2 1 1 4 2 3 3 7 6 0 9 2 2 2 0 , , 2 8 3 3 8 1 2 5 0 3 6 8 2 2 3 3 6 8 , , , , 7 7 8 9 1 5 4 7 9 1 7 4 1 1 19 9 9 4 4 4 7 9 8 — — — D D D J J e e u e u c c c n n e e . . . . . . . . 4 5 5 4 5 5 8 3 3 4 , , , , ,7 0 5 8 8 5 5 3 3 8 7 4 8 8 4 4 4 4 4 4 , , , , , 7 6 4 4 3 1 8 4 5 9 0 1 5 5 3 3 4 2 7 , , , , 4 5 2 9 8 1 5 2 9 3 5 2 1 3 4 3 3 3 3 5 , , , , , 9 5 8 9 0 4 2 8 3 0 1 2 7 3 3 8 8 6 8 7 , , , , , 0 6 5 6 2 4 3 8 0 9 8 9 8 3 6 1 1 1 1 1 7 5 4 3 8 , , , , , 1 2 1 4 2 2 3 7 8 1 9 0 9 5 1 1 1 1 1 1 5 6 4 7 3 , , , , , 5 2 0 7 0 4 4 9 1 9 2 2 4 0 0 1949— D D Ju e e n c c e 1 1 1 1 1 0 0 1 4 , , , 4 4 7 2 4 5 6 0 8 5 5 5, , , 2 2 3 1 0 4 7 1 0 1 7 7 0 , , , 2 7 9 1 7 8 8 7 0 4 3 4 9 0 2, , , 0 2 3 4 3 7 2 5 1 1 1 1 0 0 0 , , , 4 4 7 8 8 6 6 0 8 1 1 1 8 7 8 , , , 8 5 3 7 9 1 9 1 5 2 2 2 5 6 5 , , , 3 0 3 7 2 2 5 9 0 1950— M Ap a r y . . . . 4 4 5 5 , , 0 0 8 8 4 4 4 4 , , 4 4 7 7 6 4 2 2 , ,8 5 8 2 2 9 4 4 , , 0 07 4 7 9 7 6 , , 0 90 24 6 1 13 3 , , 5 5 1 2 7 6 1 1 3 3 , , 2 4 4 6 7 1 1950—Apr. . . . 102,795 5,268 6,155 38,285 10,571 17,48725,029 May 102,795 5,267 5,80238,461 10,604 17,40125,260 * Figures include only holdings by institutions or agencies from which reports are received. Data for commercial banks, mutual savings banks, insurance companies, and the residual "other" are not entirely comparable from month to month. 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. 8 Including Postal Savings and prewar bonds and a small amount of guaranteed securities, not shown separately below. 1046 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SUMMARY OF TREASURY RECEIPTS, EXPENDITURES, AND RELATED ITEMS [In millions of dollars] On basis of daily statements of United States Treasury Cash operating Increase (+) or General fund of the Treasury (end of period) during period Assets y m e o ar n t o h r c N e r i e e p - t ts B p t e u u n r d d e g s i e - t s ( d u + e r ) f p i o c l r u it s c T o e a r t u u c c n - s .1 t t s c C o i a l n u c e g - a n r t - 1 G de ro b s t s G ba f e u l n a n e n d r c a e l f a g B e u n i e r a n n a c n l d l e - - Total B s F D e a R e e r n r e e a d v k - p l - e s o 2 si d i t S s t e c a p p i i r a e n o i l - e s s - O as t s h e e t r s T b t l o i i i e a l t i s - a - l c C o i a n m s - h e o C u a t s g h o i ( E n o + x c u ) c o t o g e m r s o s e Fiscal year: 1948 42,211 33,791 +8 419 —294 —507 —5,994 +1,624 4,932 5,370 1,928 1,773 1 670 438 45 40036 496 +8 903 1949 38,246 40,057 -1,811 -495 +366 +478 -1,462 3,470 3,862 438 1,771 1,653 392 41,628 40,576 +1,051 1950 37,045 40,167 -3,122 +99 +483 +4,587 +2,047 5,517 5,927 950 3,268 11,709 410 40 97043,155 —2,185 1949—July.. 1,946 3,434 -1,488 +30 +218 +1,107 -133 3,337 3,699 529 1,485 1,684 362 2,081 2,966 -885 Aug... 2,479 3,585 -1,106 +345 -133 +1,975 +1,081 4,418 4,767 610 2,513 1,644 349 3,150 3,715 -566 Sept.. 4,832 3,995 +837 -404 +20 " +828 +1,281 5,699 6,080 1,176 3,226 ,679 381 4,915 3,847 +1,068 Oct... 1,881 3,111 -1,230 +10 +160 +98 -962 4,737 5,080 595 2,831 •1,654 343 2,046 3,266 -1,220 Nov.. 2,344 3,127 -783 +299 -36 +204 -315 4,422 4,789 517 2,632 ,641 367 2,965 3,426 -461 Dec... 4,191 3,722 +469 -272 -88 +148 +257 4,679 5,033 841 2,557 11,635 354 4,263 4,070 +193 1950—Jan.. . 3,366 3,323 +44 +2 +589 -265 +370 5,049 5,421 677 2,898 1,847 372 3,485 3,177 +308 Feb... 2,972 2,496 +476 +170 -11 -497 +137 5,186 5,489 666 3,146 ,677 303 3,595 3,537 +58 Mar... 4,820 3,269 +1,551 -93 +122 -645 +935 6,121 6,438 1,006 3,665 1,766 317 5,162 '4,046 Apr... 1,488 2,847 -1,358 -79 +25 -6 -1,419 4,702 5,074 875 2,543 1,657 373 1,683 3,344 -1,661 May.. 2,320 2,962 -642 +147 -376 +632 -238 4,464 4,757 588 2,560 1,609 294 2,939 3,700 -762 June.. 4,404 4,296 +108 -53 Q +1,007 +1,053 5,517 5,927 950 3,628 ,709 410 4,687 4,061 +626 July.. 1,881 3,013 -1,132 -99 +31 +183 -1,017 4,500 4,864 566 2,618 1,680 364 DETAILS OF TREASURY RECEIPTS On basis of daily statements of United States Treasury On basis of reports by collectors of internal revenue Income taxes Deduct Individual Corporation income F o i r s c m al o y n e th ar b p W y l h o e i y e t l e m d h r - s - Other i r n e n c M v t e e e e o l i r l n s u a n - u s - a e l S S t r a o e i x c c ty e i u a s - l c O e r i t p e h - t e s r 4 c T e r o i e p t - a ts l R t e a f o x u f e n s ds e S t m S a m e o x c p e c e u l n i o s r a t i y l 5 t - y c N e r i e e p - t ts W i h n e c it l o d h m - e O ta t x h e e s r N s a u o a n r r n d t m d a p x a r l ofits E p o t r a x a t o n h c x f d e e i e t s r s s s t t a a g E a n x i s t f d e e - t s m l E a o t a a x i n t s n x h c e c d e i e o e s s r u l e - s Fiscal year: 1948 11,436 19,735 8,301 2,396 4,231 46,099 2,272 1,616 42,211 11,534 9,464 9,852 323 899 7,412 1949 9,842 19,641 8,348 2,487 2,456 42,774 2,838 1,690 38,246 10,056 7,996 11,343 211 797 7,585 1950 10,073 18,189 8,303 2,892 1,853 41,311 2,160 2,106 37,045 9,889 7,264 10,760 95 706 7,599 1949—juiy> # m. 554 655 653 65 135 2.061 57 58 1,946 828 167 485 8 48 587 Aug.. .. 1,161 407 749 404 196 2,917 57 381 2,479 1,556 99 270 7 61 713 Sept 657 3,237 714 147 131 4,885 45 7 4,832 26 991 2,256 11 73 645 Oct 564 496 753 65 114 1,993 49 62 1,881 952 122 348 8 53 688 Nov.... 1,134 355 722 356 161 2,727 46 337 2,344 1,403 90 226 6 56 672 Dec.... 695 2,520 720 141 180 4,255 59 5 4,191 36 292 2,256 7 59 606 1950—Jan 588 1,957 645 68 222 3,480 67 47 3,366 698 1,657 338 7 51 594 Feb 1,310 1,032 599 544 123 3,607 238 398 2,972 1,816 739 221 7 48 541 Mar.... 774 3,655 701 364 128 5,622 573 229 4,820 93 1,604 2,103 8 91 674 Apr.... 479 788 629 93 103 2,092 518 86 1,488 530 470 283 5 60 548 May. . . 1,342 379 704 295 176 2,895 301 274 2,320 1,763 116 201 12 52 660 June.. 817 2,709 714 351 184 4,776 149 222 4,404 188 917 1,773 7 54 670 July.... 434 594 737 204 179 2,148 66 201 1,881 DETAILS OF BUDGET EXPENDITURES AND TRUST ACCOUNTS On basis of daily statements of United States Treasury Budget expenditures Trust accounts, etc. Social Security Other F o i r s c m al o y n e th ar Total N d a e t f i e o n n s a e l e I d n st e t e b o r t n - f t I i i n n a n a o a n t i a n e n d d - a r c - l e t e m r V A r a a i t e d n i n t - o i s s n ' - a t c A u g t u o i r r d l e i - - T c t o f r r a e t a u u c o r n n s - s t s ts - Other c N e r i e e p - t ts ac m c v o I e e n u s n - t n - t t s s p tu E en r x e d - s i- ce R i e p - ts m v I e e n s n - t- ts p tu E e r x n e " d . s i 4 - Fiscal year: 1948 33,791 11,500 5,211 4,143 6,317 782 1,178 4,661 3,918 2,210 1,640 5,598 850 2,109 1949 40,057 12.158 5,339 6,011 6,791 2,661 916 6,181 3,722 1,479 2,252 1,992 832 1,646 1950 40,167 12,378 5,750 4,598 6,044 3,043 1,383 6,970 4,293 1,028 3,114 2,376 -1,430 3,857 1949—July 3,434 1,033 322 478 489 64 413 635 489 199 243 100 24 93 Aug . . 3,585 1,165 125 421 518 327 330 698 637 46 262 395 265 114 Sept 3,995 1,024 544 455 440 495 419 618 37 151 265 513 425 113 Oct 3,111 1,002 255 394 504 242 85 628 172 —92 232 114 6 129 3,127 1,056 306 353 540 212 7 654 562 13 256 97 9 82 Dec 3,722 1,095 1,008 347 515 311 -26 472 48 77 277 68 -25 60 1950—Tan 3,323 1,046 463 294 509 314 45 652 291 -29 295 121 —424 568 Feb 2,496 ••936 161 325 494 124 8 448 568 85 267 116 —746 909 Mar 3,269 1,051 636 375 578 127 11 491 262 47 311 158 -844 999 Apr 2,847 '964 184 344 499 217 69 570 178 52 238 127 -327 421 !May . . .... 2,962 1,007 136 412 498 454 16 439 556 169 243 117 -73 186 4,296 998 1,611 398 459 157 8 665 493 309 225 451 279 184 July 3,013 Pl.005 271 P274 448 P435 *40 262 146 189 65 6 85 P Preliminary. r Revised. 1 Excess of receipts (+) or expenditures (—). 2 Excluding items in process of collection beginning with July 1947. 8 For description, see Treasury Bulletin for September 1947 and subsequent issues. * Including surplus property receipts and receipts from renegotiation of war contracts, which for fiscal years 1947-1949 amounted to 2,886, 1,929, and 589 million dollars and 279, 161, and 57 million, respectively. 5 These are appropriated directly to the Federal old-age and survivors insurance trust fund. 1047 AUGUST 1950 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 items l Li i a n b t i e li r t a i g es e , n c o y th e it r e m th s an Bonds, notes, Com- Invest- and deben- U. S. Primodi- ments Land, tures payable Gov- vately Corporation or agency Total Cash L c a r e o b e i a l v - e n - s m p r s t a l i i u a n i e a e p t s d l e s s - , , - G U s ri e o t . c i v e u S t s - . . O r s i e t t i c h e u e s - r 2 s e t m u t a q r r n e u u e d n i c s p t - , - O s a t e h s t - s er a F g n u u b t a e y ll r e y - d Other l O i i a t t i b h e i e s l r - i m n e e r t e s e n n t r - t - o i w n e t s n e t e r- d U. S. All agencies: June 30, 1949 22,232 51411,770 1,140 2,004 3,508 2,946 351 865 1,48719,682 172 Sept. 30, 1949 22,594 37911,720 1,596 2,069 3,501 2,933 396 856 1,07420,460 177 Dec. 31, 1949 23,733 44112,733 1,549 2,047 3,492 2,962 509 772 1,72021,030 183 Mar. 31, 1950 ..24,360 38713,350 1,567 2,221 3,488 2,932 414 708 2,07221,368 191 Classification by agency, Mar. 31, 1950 Department of Agriculture: Farm Credit Administration: Banks for cooperatives 324 258 72 233 18 Federal intermediate credit banks 559 493 463 91 Production credit corporations 63 63 Agricultural Marketing Act Revolving Fund 2 1 2 Federal Farm Mortgage Corp 53 48 52 Rural Electrification Administration 1,400 1,357 () 1,400 Commodity Credit Corporation 3,575 1,988 1,414 {\ 68 1,326 2,245 Farmers' Home Administration4... . 490 421 2 487 Federal Crop Insurance Corp 35 7 28 Housing and Home Finance Agency: Home Loan Bank Board: Federal home loan banks 740 320 395 172 320 75 173 Federal Savings and Loan Insurance Corp, 223 217 6 217 Home Owners' Loan Corp 176 147 5 9 165 Public Housing Administration 5 1,662 309 1,310 20 1,642 Federal Housing Administration 294 19 *209 1 15 137 141 Federal National Mortgage Association. 991 986 11 981 Reconstruction Finance Corporation: Assets held for U. S. Treasury 6 786 2 125 605 786 Other? 1,043 902 1 63 980 Export-Import Bank 2,214 2,200 () 101 2,113 Federal Deposit Insurance Corp 1,277 1,264 () 36 1,242 Federal Works Agency 164 () 89 66 5 159 Tennessee Valley Authority 877 18 838 13 864 All other8 7,410 112 3,809 3,385 42 10 7,400 CLASSIFICATION OF LOANS BY PURPOSE AND AGENCY Mar. 31, 1950 Purpose of loan M F C F a o e o r r d m r p . t . . b c m i F n r a a e e e t n t e d d d e k r i i . - s - t B f o t o a i p r v n e e k c r s a o s - - m C C C r o o o e d m r d p i i - t . t y t R A r E t i i f u d l o i e r m c n c a a - l . - F A H e a d o r r m s m m ' . e - H O C L e o o o w r m r a s n p ' n e - . P H A u i o d n b u m g l s ic . - b h F l a o o e n m a d k n . e s R s n C t t e a F i r o c n o u i r o - n c c p n e - . - B p p E I 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 - a D g 1 e e 9 a c n 4 . l c l 9 3 i , e 1 s , To aid agriculture 56 493 262 2,118 1,358 554 (3) 10 4,851 4,362 To aid home owners 148 3 161 1,011 1,324 1,251 To aid industry: Railroads 110 3 113 114 Other .... 1 462 33 496 462 To aid financial institutions: Banks (3) 3 3 4 Other 320 8 328 442 Foreicn loans 144 2,207 3,750 6,101 6,090 Other 307 85 100 492 484 Less: Reserve for losses 8 (3) 3 130 1 133 1 2 67 7 4 358 476 Total loans receivable (net)... 48 493 258 1,988 1,357 421 147 309 320 904 2,200 4,905 13,350 12,733 1 Assets are shown on a net basis. i. e., after reserve for losses. 2 Totals for each quarter include the United States' investment of 635 million dollars in stock of the International Bank for Reconstruction and Development and its subscription of 2,750 million to the International Monetary Fund. 3 Less than $500,000. 4 Includes assets and liabilities of the Regional Agricultural Credit Corporation, which have been reported as "Disaster Loans, etc., Revolving Fund," since the dissolution of that Corporation pursuant to Public Law 38, 81st Congress. 5 Includes Farm Security Administration program, Homes Conversion program, Public War Housing program, Veterans' Re-use Housing program, and Public Housing Administration activities under the United States Housing Act, as amended. 6 Assets representing unrecovered costs to the Corporation in its national defense, war, and reconversion activities, which are held for the Treasury for liquidation purposes in accordance with provisions of Public Law 860, 80th Congress. 7 Includes figures for Smaller War Plants Corp. which is being liquidated by the Reconstruction Finance Corp. 8 Figures for one small agency are for a date other than Mar. 31, 1950. NOTE.—Statement includes figures for certain business-type activities of the U. S. Government. Comparability of the figures in recent years has been affected by (1) the adoption of a new reporting form and the substitution of quarterly for monthly reports beginning Sept. 30, 1944, and (2) the exclusion of figures for the U. S. Maritime Commission beginning Mar. 31, 1948. For back figures see earlier issues of the BULLETIN and Banking and Monetary Statistics, Table 152, p. 517. 1048 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] Year or month Tota I ( n l p d h 1 u y 9 s s t 3 i r 5 c i a a - D 3 l l 9 u v f p M a r o r - = c o lu a t d u 1 n m u r 0 u N d e c e 0 - t ) s u o i * r n o - x n - M era in ls - T a o w t 1 a C 9 a l 2 r o c d 3 n o e - s R n d d 2 t t t e 5 i e r r a u n s a ( l i c - = v c - t t a i s 1 l o u 0 n o e A 0 t ) h 2 l e l r N t a c u g u o r r l E n a i - - l - 1 m 9 p 39 lo y F = m a 1 c e 0 t n o 0 t r 3 y 1 r F p 9 t o 1 o a 3 a l 0 c l r 9 y s y - 0 - a = c 1 F a i 9 = r n r 3 e l g 1 5 o i s g 0 - a * 3 0 h d 9 t - 1 D u 9 m s = s ( e e 3 v t a p o e 1 ) a 5 l * a e l n r 0 - - e s r 3 t 0 4 t 9 - 1 s p 9 u C = r 3 i m o c 1 5 e n e 0 - s - r 3 0 s 3 9 ' W p m c = r 1 s i o h o 9 a c 1 m o 2 d l e e 0 l 6 i s - e 0 t 3 y able able 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 1919 72 84 62 71 63 44 79 88.6 103.7 103.9 120 83 123 8 138 6 1920 75 93 60 83 63 30 90 89.4 104.1 124 2 129 99 143 3 154 4 1921 58 53 57 66 56 44 65 79.7 79.7 80 2 110 92 127 7 97 6 1922 73 81 67 71 79 68 88 84.4 88.2 86.0 121 93 119 7 96 7 1923 88 103 72 98 84 81 86 92.9 100.9 109 1 142 104 121 9 100 6 1924 82 95 69 89 94 95 94 91.7 93.7 101.8 139 104 122 2 98 1 1925 90 107 76 92 122 124 120 94.1 97.0 107.3 146 109 125 4 103 5 1926 96 114 79 100 129 121 135 97.5 98.9 110.5 152 112 126 4 100 0 1927 95 107 83 100 129 117 139 98.0 96 7 108 5 147 113 124 0 95 4 1928 99 117 85 99 135 126 142 98.1 96.9 109 8 148 114 122 6 96 7 1929 110 132 93 107 117 87 142 102.5 103.1 117.1 152 116 122 5 95 3 1930 91 98 84 93 92 50 125 96.2 89 8 94 8 131 108 119 4 86 4 1931 75 67 79 80 63 37 84 87.1 75 8 71 8 105 96 108 7 73 0 1932 58 41 70 67 28 13 40 77.2 64.4 49 5 78 75 97 6 64 8 1933 69 54 79 76 25 11 37 77.5 71.3 53.1 82 73 92 4 65 9 1934 75 65 81 80 32 12 48 84.9 83.2 68 3 89 82 95 7 74 9 1935 87 83 90 86 37 21 50 88.5 88.7 78.6 92 88 98 1 80 0 1936 103 108 100 99 55 37 70 95.1 96.4 91.1 107 100 99 1 80 8 1937 113 122 106 112 59 41 74 101.4 105.8 108.9 111 107 102 7 86 3 1938 89 78 95 97 64 45 80 95.4 90 0 84 7 89 99 100 8 78 6 1939 109 109 109 106 72 60 81 100.0 100.0 100.0 101 106 99 4 77 1 1940 125 139 115 117 81 72 89 105.8 107 5 113 6 109 114 100 2 78 6 1941 162 201 142 125 122 89 149 119.4 132.8 164.9 130 133 105 2 87 3 1942 199 279 158 129 166 82 235 131.1 156 9 241 5 138 150 116 5 98 8 1943 239 360 176 132 68 40 92 138.8 183.3 331.1 137 168 123 6 103 1 1944 235 353 171 140 41 16 61 137 0 178 3 343 7 140 187 125 5 104 0 1945 203 274 166 137 68 26 102 132.3 157.0 293 5 135 207 128 4 105 8 1946 170 192 165 134 153 143 161 136.7 147 8 271 1 132 264 139 3 121 1 1947 187 220 172 149 157 142 169 143 2 156 2 326 9 143 286 159 2 152 1 1948 192 225 177 155 190 162 214 145.9 155 2 3514 138 302 171 2 165 1 1949 176 202 168 135 211 192 226 142.0 141.6 325 3 116 286 169 1 155 0 1948 July 186 187 219 169 153 205 187 219 146.3 155.8 153.5 346 5 138 312 173 7 168 8 August . ... 191 194 223 177 159 201 177 220 146.7 155.6 156.3 360 :i 142 308 174 5 169 8 September 192 197 225 178 156 193 165 216 146.8 155.6 158.9 366.8 139 308 174.5 168 9 October 195 199 231 179 158 184 157 206 146.8 155.3 157.6 366.7 140 310 173 6 165 4 November 195 195 229 178 161 189 154 217 146.6 154.5 155.9 362.8 137 291 172 2 164 0 December 192 190 231 173 156 180 145 209 146.2 152.1 153.5 360.7 137 302 171.4 162.4 1949 January 191 187 227 175 149 174 133 207 144.9 149.3 148.9 345.9 131 295 170 9 160 7 February 189 185 225 173 149 169 123 207 144.1 147.6 147.4 340.4 126 284 169.0 158.4 IVlarch 184 181 223 168 136 175 130 212 143.4 145.6 145.3 332.8 120 279 169.5 158.6 April 179 177 212 162 148 177 141 206 142.8 143.4 141.8 319.2 127 293 169 7 157 1 May 174 174 201 161 145 181 159 199 142.1 140.8 138 2 312 8 124 291 169 2 '155 8 June 169 170 194 161 133 195 176 210 141.6 139.9 138.4 315.7 114 285 169 6 154 5 July 161 163 185 154 123 209 200 217 141.0 138.9 136.9 312 8 110 280 168 5 '153 6 August 170 174 193 165 129 229 228 230 141.5 139.6 141.1 323.0 117 283 168.8 152.9 September 174 178 199 172 119 246 254 240 142.2 141.3 143.7 335.1 105 289 169 6 '153 5 October 166 169 175 177 112 263 269 259 139.2 136.6 138 8 320 9 92 276 168 5 152 2 November 173 174 181 177 141 265 256 273 139.9 136.5 137.8 313.9 117 277 168 6 151 6 December 179 178 203 176 132 262 255 268 141.0 139.0 140.4 329.3 115 293 167.5 151.2 1950 January 183 179 209 179 130 242 245 239 140 5 140 2 139 8 329 2 117 282 166 9 151 5 February 180 177 207 180 118 263 260 266 139.5 140.2 139.9 330.0 104 280 166 5 152 7 !March 187 183 211 181 144 275 278 274 141 2 141 2 141 0r333 5 127 274 167 0 152 7 190 188 222 180 140 284 298 273 142.8 143.1 '141.6 '337 2 126 292 167 3 152 9 May 195 195 231 181 145 274 303 250 144.0 147 .1 144 5 349 0 122 290 168 6 155 9 June P199 ?201 2>237 *>184 ns\ P287 ?317 ?263P145.0P148.5P147.0 e362.1 127 298 170 2 157 3 July 499 «201 e238 482 448 125 "362 * Average per working day. « Estimated. P Preliminary. ' Revised. 1 For indexes by groups or industries, see pp. 1050-1053. For points in total index, by major groups, see p. 1072. 2 Three-month moving average, based on F. W. Dodge Corporation data; for description of index, see BULLETIN for July 1931, p. 358. For monthly data (dollar value) by groups, see p. 1057. 3 The unadjusted indexes of employment and payrolls, wholesale commodity prices, and consumers' prices 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. * For indexes by Federal Reserve districts and other department store data, see pp. 1059-1062. Back figures in BULLETIN.—For industrial production, August 1940, pp. 825-882, September 1941, pp. 933-937, and October 1943, pp. 958-984; for department store sales, June 1944, pp. 549-561. AUGUST 195G 1049 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] 1949 1950 Industry June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Tune Industrial Production—Total 169 161 170 174 166 173 179 183 180 187 190 195 P199 Manufactures—Total 175 168 178 184 176 179 188 192 192 194 199 204 P208 Durable Manufactures 194 185 193 199 175 181 203 209 207 , 211 222 231 P237 Iron and Steel * . 177 156 178 179 102 145 201 203 201 205 222 226 P229 Pig iron 189 158 170 171 23 107 198 201 175 175 219 222 111 Steel . 182 162 191 193 38 137 239 244 238 243 270 273 111 Open hearth 167 148 165 168 21 105 194 192 181 180 204 206 202 Electric 293 259 376 373 162 359 557 612 639 691 739 755 763 225 217 216 224 226 217 227 229 236 243 251 259 P264 Transportation Equipment 240 249 246 252 238 206 211 242 210 214 '226 261 P279 Automobiles (including parts). . . 111 225 225 231 216 175 181 224 182 189 ••205 248 P271 (Aircraft; Railroad Equipment; Shipbuilding — Private Nonferrous Metals and Products 133 127 141 157 164 163 166 '190 '198 197 P204 Smelting and refining 193 180 174 175 167 169 174 191 202 208 207 208 P219 (Copper smelting; Lead refining; Zinc smelting; Aluminum; Magnesium; Tin)2 . Fabricating 108 105 128 150 162 161 '163 '176 '•184 r197 rl94 192 P198 (Copper products; Lead shipments; Zinc shipments; Aluminum products; Magnesium products; Tin Lumber and Products 123 115 126 132 133 147 159 144 150 156 159 158 P154 Lumber 114 104 115 119 116 139 153 132 138 145 150 149 Furniture 139 136 148 158 165 163 170 166 173 176 175 175 P175 Stone Clay and Glass Products 186 185 183 183 184 183 187 190 192 188 r201 203 P212 Glass products 193 202 192 184 193 184 182 194 195 191 209 211 P219 Glass containers 206 223 204 195 204 193 190 206 207 201 222 223 234 Cement 195 190 183 189 182 191 206 207 211 192 218 210 P214 Clay products 152 140 145 146 146 147 150 158 157 rl58 160 162 P165 Nondurable Manufactures 161 154 165 172 177 177 176 179 180 181 180 181 PI 84 Textiles and Products 126 120 140 155 169 175 173 178 179 173 174 175 P173 Textile fabrics 116 107 127 140 153 157 154 160 162 156 157 158 P156 Cotton consumption 105 87 111 127 134 138 134 144 144 138 139 140 132 N Ra y y lo o n n a d n e d li v s e il r k ie c s on . s . um .. ption . 2 217 238 259 294 318 340 350 355 357 350 348 '•347 349 Wool textiles 120 109 134 139 161 158 151 154 159 152 154 157 Carpet wool consumption 127 91 141 148 178 186 193 215 215 210 222 216 Apparel wool consumption 110 109 134 138 158 140 136 147 163 153 143 149 Wool and worsted yarn 115 108 129 135 154 144 133 131 140 134 134 140 Woolen yarn 118 113 132 128 141 135 119 119 122 116 119 127 Worsted yarn .. . 111 102 126 145 174 158 153 148 165 161 156 158 Woolen and worsted cloth.... 126 118 136 140 163 166 159 156 156 146 149 153 Leather and Products . 105 96 110 115 108 97 101 108 115 116 110 101 Leather tanning 97 84 91 100 98 92 99 95 102 98 101 95 Cattle hide leathers 110 98 104 112 106 100 111 103 112 108 112 104 Calf and kip leathers 75 55 69 77 81 77 88 86 85 77 83 75 Goat and kid leathers 80 71 72 84 85 80 78 85 89 91 83 88 Sheep and lamb leathers 79 70 78 87 93 86 76 80 91 82 97 81 Shoes 110 104 123 125 115 101 103 116 124 128 115 106 Manufactured Food Products . . . 165 161 166 167 165 160 160 161 161 '165 164 164 P164 Wheat flour 120 112 109 110 111 110 105 114 112 111 105 107 P106 Cane sugar meltings 2 Manufactured dairy products 151 151 152 151 146 147 148 148 149 154 153 150 153 Butter. 81 78 82 86 83 86 85 85 86 94 91 85 87 Cheese 176 171 171 167 162 176 183 185 181 191 195 175 184 Canned and dried milk 167 173 172 158 140 135 142 135 144 158 155 155 165 Ice cream 2 P Preliminary. r Revised. 1 Methods used in compiling the iron and steel group index have been revised beginning October 1949. A description of the new method* may be obtained from the Division of Research and Statistics. 8 Series included in total and group indexes but not available for publication separately. 1050 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] 1949 1950 Industry June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June Manufactured Food Products—Continued !Meat packing 141 150 153 158 155 154 157 154 151 160 157 144 147 Pork and lard 150 164 168 181 184 183 185 174 168 184 182 161 165 Beef 144 147 148 146 133 132 137 146 146 150 144 142 141 Veal 114 127 139 134 129 133 125 108 105 108 104 98 108 Lamb and mutton 68 77 80 83 85 81 86 85 77 76 74 71 79 Other manufactured foods 175 168 174 176 175 168 167 169 169 173 171 P173 P173 Processed fruits and vegetables 173 139 151 137 149 134 132 142 136 152 '148 151 P\61 Confectionery 116 108 134 142 132 127 140 139 139 136 131 Other food products 185 185 187 191 189 183 181 181 183 184 184 186 p-tQA Alcoholic Beverages . . .. 169 165 172 174 167 187 173 169 rl59 r169 184 Malt liquor 161 171 169 166 143 171 172 170 159 172 159 157 163 Whiskey .... 60 42 44 69 72 77 83 88 r84 r81 r93 95 Other distilled spirits 277 200 292 182 194 149 228 259 214 214 280 363 417 Rectified liquors 267 246 257 314 369 390 240 205 204 268 242 235 269 Tobacco Products 172 146 178 175 165 169 149 162 162 176 161 168 170 Cigars 117 101 111 125 123 120 88 97 102 97 91 93 106 Cigarettes 233 196 242 231 217 226 205 224 222 248 224 237 233 Other tobacco products 69 61 78 76 72 67 66 69 67 72 67 63 68 Paper and Paper Products 143 129 155 169 176 177 167 179 178 179 181 180 184 Paper and pulp 138 126 148 160 168 168 160 171 171 172 174 '•173 177 Pulp 159 147 171 179 192 191 180 198 201 198 204 199 205 Groundwood pulp 94 99 99 104 104 91 98 93 98 94 97 '99 109 Soda pulp 80 87 99 102 112 113 107 118 117 113 121 119 120 Sulphate pulp 275 256 302 315 340 336 312 354 360 350 365 r363 373 Sulphite pulp 122 104 124 133 144 145 138 148 149 152 153 145 146 Paper . . .... 134 122 144 157 164 165 157 167 167 169 170 168 173 Paperboard 164 142 184 203 206 210 193 209 205 203 207 211 213 Printing paper 142 133 150 ihi 168 167 166 167 167 175 171 167 172 139 141 144 157 170 168 161 175 170 173 185 166 171 Wrapping paper 117 109 123 136 150 150 145 155 162 163 160 158 167 Newsprint 105 106 101 96 96 94 94 98 98 102 111 112 115 Paperboard containers (same as Paperboard) Printing and Publishing 149 144 151 159 165 160 159 163 168 169 169 166 170 Newsprint consumption 156 156 151 156 162 153 152 159 169 163 168 165 168 Printing paper (same as shown under Paper) Petroleum and Coal Products 202 198 203 208 198 205 219 211 205 207 206 216 Petroleum refining' Gasoline 177 178 177 179 180 177 ikb 176 174 173 171 181 P188 Fuel oil . . 154 159 168 180 182 182 190 192 187 178 172 175 Lubricating oil 145 132 131 142 152 152 153 149 148 152 133 143 Kerosene 140 142 142 160 177 177 198 207 190 188 170 184 Other petroleum products * Coke 159 139 146 145 49 102 158 154 124 146 174 175 176 By-product coke 158 143 150 149 50 104 161 156 127 145 170 171 170 Beehive coke 202 18 33 23 7 23 58 76 21 181 320 328 389 Chemical Products 233 228 229 236 240 243 245 248 247 247 252 256 P261 Paints 134 133 137 139 143 143 141 144 147 147 147 147 Rayon . .... 249 252 257 276 294 316 335 349 355 352 349 350 P350 Industrial chemicals 404 392 388 405 414 417 422 419 424 428 434 444 P455 Other chemical products ^ Rubber Products 178 175 178 174 192 187 193 194 195 197 r202 213 P22 Minerals—Total 133 123 129 119 112 141 132 130 118 144 140 145 P151 Fuels 135 126 134 122 120 152 136 133 118 148 147 148 P154 Coal . . 99 83 102 58 49 130 95 91 43 141 131 r124 128 Bituminous coal 104 80 108 60 31 133 103 96 38 149 143 131 136 Anthracite 78 93 82 50 118 117 63 69 65 108 83 T-97 94 Crude petroleum . . 153 147 149 154 156 163 157 154 155 152 155 160 P167 Metals 124 105 102 98 59 76 106 117 118 119 98 124 P136 175 144 140 133 63 91 141 160 161 159 121 P166 P187 (Conner* Lead* Zinc)2 Gold 52 51 48 50 52 54 55 57 58 62 62 Silver 62 56 52 54 57 63 64 60 63 72 81 For other footnotes see preceding page. NOTE.—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. 1051 AUGUST 1950 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] 1949 1950 Industry June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June Industrial Production—Total 170 163 174 178 169 174 178 179 177 183 188 195 P201 Manufacturers—Total 176 169 181 188 179 180 186 189 188 191 197 203 P209 Durable Manufactures 195 186 194 200 176 181 201 206 204 210 221 232 Iron and Steel * 177 156 178 179 102 145 201 203 201 205 222 226 v229 Pig iron 189 158 170 171 23 107 198 201 175 175 219 222 221 Steel 182 162 191 193 38 137 239 244 238 243 270 273 271 Open hearth ... 167 148 165 168 21 105 194 192 181 180 204 206 202 Electric 293 259 376 373 162 359 557 612 639 691 739 755 763 Machinery • . 225 217 216 224 226 217 227 229 236 243 251 259 P264 Transportation Equipment . . 240 249 246 252 238 206 211 242 210 214 '226 261 P279 Automobiles (including parts) 211 225 225 231 216 175 181 224 182 189 r205 248 P271. (Aircraft; Railroad equipment; Shipbuilding—Private Nonferrous Metals and Products 133 127 141 157 164 164 r190 rl98 197 P204 Smelting and refining 192 179 174 175 167 170 175 191 202 208 207 208 P218 (Copper smelting; Lead refining; Zinc smelting; fabricating 108 105 128 150 162 161 163 176 184 197 194 192 P198 (Copper products; Lead shipments; Zinc shipments; Aluminum products; Magnesium products; Tin Lumber and Products 129 121 134 141 138 144 145 130 138 147 158 162 P165 Lumber 124 113 126 132 125 134 132 111 119 133 150 155 Furniture • . . . . .. 139 136 148 158 165 163 170 166 173 176 175 175 P175 Stone Clay and Glass Products 188 187 190 191 193 188 181 179 179 '180 209 P214 Glass products 191 196 197 188 197 186 172 191 191 191 209 222 P218 Glass containers . . .. . 204 214 212 199 210 195 177 202 201 201 222 ' 238 232 Cement 209 209 207 219 211 206 187 168 160 157 207 221 P229 Clay products 151 140 149 151 154 153 154 147 150 151 155 161 P164 Nondurable Manufactures 161 156 170 178 181 178 175 175 176 177 178 180 *>184 Textiles and Products . • 126 120 140 155 169 175 173 178 179 173 174 175 P173 Textile fabrics 116 107 127 140 153 157 154 160 162 156 157 158 P156 R C a o y tt o o n n d c e o l n iv s e u r m ie p s tion 2 1 1 0 7 5 23 8 8 7 2 1 5 1 9 1 2 1 9 2 4 7 3 1 1 3 8 4 3 1 4 3 0 8 3 1 5 3 0 4 3 1 5 4 5 4 3 1 5 4 7 4 3 1 5 3 0 8 3 1 4 3 8 9 r3 1 4 4 7 0 3 1 4 3 9 2 Nylon and silk consumption 2. Wool textiles • 120 109 134 139 161 158 151 154 159 152 154 157 Carpet wool consumption 127 91 141 148 178 186 193 215 215 210 222 216 Apparel wool consumption 110 109 134 138 158 140 136 147 163 153 143 149 Woolen and worsted yarn 115 108 129 135 154 144 133 131 140 134 134 140 Woolen yarn 118 113 132 128 141 135 119 119 122 116 119 127 Wrorsted yarn 111 102 126 145 174 158 153 148 165 161 156 158 Woolen and worsted cloth 126 118 136 140 163 166 159 156 156 146 149 153 Leather and Products 104 94 110 114 108 98 101 108 118 115 110 102 Leather tanning 95 80 90 98 99 95 99 96 109 97 101 94 Cattle hide leathers 105 92 101 110 107 105 111 105 120 108 112 104 Calf and kip leathers 76 55 72 76 83 78 86 84 89 75 80 72 Goat and kid leathers 81 70 70 84 85 77 79 85 92 90 86 86 Sheep and lamb leathers 78 65 81 86 93 91 72 74 100 79 95 87 Shoes 110 104 123 125 115 101 103 116 124 128 115 106 Manufactured Food Products ". 165 172 189 190 177 162 156 149 146 148 150 157 P164 Wheat flour . . 115 111 108 120 118 111 104 114 113 109 101 103 P101 Cane sugar meltings 2 ]Vtanufactured dairy products 223 222 197 159 121 97 96 95 107 128 159 199 226 Butter 112 96 90 83 72 65 67 71 76 85 93 109 122 Cheese . . 250 210 191 171 146 132 132 137 149 172 203 235 262 Canned and dried milk 230 201 177 146 113 97 109 109 129 155 175 215 228 p Preliminary. •" Revised. 1 Methods used in compiling the iron and steel group index have been revised beginning October 1949. A description of the new methods may be obtained from the Division of Research and Statistics. 2 Series included in total and group indexes but not available for publication separately. 1052 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] 1949 1950 Industry June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June Manufactured Food Products—Continued ]VIeat packing . • . . 139 140 134 145 155 172 186 183 144 148 145 144 146 Pork and lard 150 144 129 143 173 214 244 229 165 171 166 161 165 Beef 142 149 149 158 145 137 137 149 135 137 136 142 138 Veal 114 127 136 148 147 142 118 100 92 101 102 102 108 Lamb and mutton 63 74 78 89 88 81 84 90 78 74 72 73 73 Other manufactured foods . ... 165 176 203 207 194 175 165 155 154 154 153 P157 P164 Processed fruits and vegetables 133 181 287 267 193 123 103 92 86 '83 91 98 Confectionery 86 89 144 184 172 150 141 143 140 126 108 Other food products. . 187 189 191 195 198 193 184 173 174 '177 *>186 177 Alcoholic Beverages 190 188 179 179 180 171 151 143 168 177 202 162 Malt liquor 203 213 192 168 133 132 138 139 144 167 179 205 Whiskey 60 42 44 69 72 77 83 88 '84 160 '97 '93 95 Other distilled spirits 172 116 158 249 503 312 250 168 128 139 168 218 258 Rectified liquors 267 246 257 314 369 390 240 205 204 268 242 235 269 Tobacco Products 179 152 184 185 171 172 138 162 154 167 152 168 176 Cigars 117 101 111 125 123 120 88 97 102 97 91 93 106 Cigarettes 245 206 254 247 225 231 188 224 209 230 209 237 245 Other tobacco products 71 61 75 81 77 69 58 68 65 72 67 64 69 Paper and Paper Products 143 128 155 169 176 177 167 178 179 179 182 181 185 Paper and pulp 138 125 148 160 168 168 160 171 172 173 175 173 178 Pulp 159 145 169 177 191 191 180 198 201 199 205 201 205 Groundwood pulp . 95 88 87 93 97 97 99 97 102 101 107 106 110 Soda pulp 80 87 99 102 112 113 107 118 117 113 121 119 120 Sulphate pulp . 275 256 302 315 340 336 312 354 360 350 365 r363 373 Sulphite pulp 122 104 124 133 144 145 138 148 149 152 153 145 146 Paper 135 122 144 157 164 165 157 166 168 169 170 168 Paper board 164 142 184 203 206 210 193 209 205 203 207 211 213 Printing paper 142 133 150 161 168 167 166 167 167 175 171 167 172 Tissue and absorbent paper 141 136 144 157 172 168 156 173 177 173 187 166 174 Wrapping paper 117 109 123 136 150 150 145 155 162 163 160 158 167 Newsprint 106 104 100 96 96 95 92 98 98 102 113 113 116 Paperboard containers (same as Paperboard) . . ... Printing and Publishing 148 133 143 159 169 167 162 157 166 172 174 169 169 Newsprint consumption 155 134 136 157 171 167 159 147 166 170 178 172 166 Printing paper (same as shown under Paper) . Petroleum and Coal Products 202 198 203 208 198 205 219 211 205 207 206 216 P220 Gasoline .. 177 178 177 179 180 177 180 176 174 173 171 181 P188 Fuel oil 154 159 168 180 182 182 190 192 187 178 172 175 P175 Lubricating oil . . . . .. 145 131 129 142 152 152 151 145 146 150 139 149 Kerosene 132 132 136 159 177 182 204 212 199 192 174 186 Other petroleum products 2 Coke 159 139 146 145 49 102 158 154 124 146 174 175 176 By-product coke 158 143 150 149 50 104 161 156 127 145 170 171 170 Beehive coke 202 18 33 23 23 58 76 21 181 320 '328 389 7 Chetnical Products . . . . . .. 230 225 226 238 247 249 249 250 250 253 255 P259 245 Paints 138 132 135 138 141 141 141 146 147 148 151 P156 Rayon 249 252 257 276 219443 316 335 349 355 352 349 350 Industrial chemicals 404 392 388 405 414 417 422 419 424 428 434 444 P455 Rubber Products . . . . 178 175 178 174 192 187 193 194 195 197 r202 213 P220 Minerals—Total 137 128 134 123 112 141 128 125 113 139 138 147 P155 Fuels 135 126 134 122 120 152 136 133 118 148 147 148 P154 Coal 99 83 102 58 49 130 95 91 43 141 131 124 128 Bituminous coal 104 80 108 60 31 133 103 96 38 149 143 131 136 Anthracite 78 93 82 50 118 117 63 69 65 108 83 '97 94 Crude petroleum 153 147 149 154 156 163 157 154 155 152 155 160 P167 Metals 150 140 135 128 63 76 81 80 81 83 87 139 P162 Metals other than gold and silver 222 204 196 179 64 87 98 98 100 101 105 P197 P234 Iron ore 340 324 305 267 18 54 72 71 64 63 79 273 Gold . 49 50 53 57 61 62 57 54 52 55 55 Silver 60 55 51 55 57 64 64 61 65 74 82 For other footnotes see preceding page. NOTE.—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. AUGUST 1950 1053 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FACTORY EMPLOYMENT, BY INDUSTRIES [Unadjusted, estimates of Bureau of Labor Statistics. Adjusted, Board of Governors] [Thousands of persons] 1949 1950 Industry group or industry June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June ADJUSTED FOR SEASONAL VARIATION Manufacturing—Total 11459 11,378 11,439 11,578 11,188 11,180 11,390 11,482 11,482 '11,570 '11,723 12 050 12,163 Durable goods 6,041 5,978 5,985 6,046 5,620 5,690 5,906 5,988 5,968 '6,046 '6,195 6 487 6,606 Primary metal industries....... 976 948 937 938 556 739 946 958 973 977 1,007 1 035 1,044 Fabricated metal products 686 688 698 708 674 663 678 686 691 702 717 748 772 Machinery except electrical 972 948 936 940 927 913 924 932 955 976 '998 1 016 1,027 Klectrical machinery 521 571 517 534 543 538 551 555 567 574 '596 612 625 Transportation equipment 998 1,014 1,012 1,010 983 898 890 978 872 879 '897 1 044 1,076 Lumber and wood products 679 669 669 677 686 692 685 652 665 684 700 724 744 Furniture and fixtures 261 261 766 776 280 779 285 286 294 298 305 309 305 Stone, clay, and glass products. . 407 406 410 412 409 409 410 405 410 410 '419 435 441 Instruments and related products 178 176 170 171 17? 17? 170 177 170 171 174 177 181 Miscellaneous manufacturing industries 342 378 35? 362 377 370 350 347 354 '357 '364 368 372 Ordnance and accessories 21 19 18 18 18 17 17 17 17 18 18 19 19 Nondurable goods 5,418 5,400 5,454 5,532 5,568 5,490 5,484 5,494 5,514 '5,524 5,528 5,563 5,557 Textile-mill products 1,083 1,096 1,114 1,143 1,168 1,172 1,169 1,165 1,166 1,166 1,166 1 169 1,172 Apparel and other finished textiles 999 992 1,030 1,061 1,051 1,023 1 070 1,07? 1,034 1,027 1,023 1 023 1,019 Leather and leather products. . . 348 349 354 352 347 330 340 345 350 350 341 348 351 Food and kindred products 1,186 1,175 1,165 1,173 1,180 1,149 1,145 1,160 1,157 1,167 '1,172 1 182 1,162 Tobacco manufactures 89 88 88 87 84 84 85 85 81 80 80 82 80 Paper and allied products. . . 373 374 375 386 390 389 384 381 382 385 391 396 401 Printing, publishing and allied industries .... . . . 496 492 491 497 495 495 494 491 493 '496 '498 499 502 Chemicals and allied products. . 473 467 470 480 483 478 477 473 478 480 488 490 490 Products of petroleum and coal. 187 185 185 186 185 188 187 187 186 185 179 177 180 Rubber products 184 182 182 167 185 18? 183 185 187 188 190 197 200 WITHOUT SEASONAL ADJUSTMENT Manufacturing—Total 11,337 11,211 11,561 11,775 11,368 11,289 11,504 11,449 11,460 'II ,549 '11,596 11,837 12,039 Durable goods 6 5,894 5,947 6,060 5,651 5,719 5,961 6,000 5,982 '6,070 '6,196 6,450 6,585 Primary Metal Industries 971 934 037, 938 HO 743 055 963 978 982 1,007 1,025 1,039 Blast furnaces, steel works and rolling mills. ... 523 S06 498 499 131 375 507 511 512 '507 '523 530 Nonferrous smelting and refining, primary. 45 42 41 42 39 38 41 43 45 '45 '45 46 Nonferrous rolling, drawing and alloying 64 62 64 67 70 63 73 74 75 77 77 79 Fabricated Metal Products . 679 671 688 708 677 666 688 603 698 709 721 741 764 Cutlery, hand tools and hardware 114 109 111 114 116 116 119 121 124 128 129 131 Heating apparatus and plumbers' supplies 94 92 100 110 116 113 111 108 112 114 118 119 Fabricated structural metal products 156 155 155 156 129 134 142 141 141 143 146 148 Machinery except Electrical 977 939 927 935 922 908 929 937 960 981 '1,003 1,021 1,032 Agricultural machinery and tractors 145 140 140 140 128 125 131 133 137 '140 142 141 Metalworking machinery.. . 156 150 147 149 148 146 146 147 149 152 156 158 Special-industry machinery 129 124 123 122 119 117 117 117 118 119 121 123 Service-industry and household machines 105 99 98 102 108 109 119 17.4 133 138 '143 149 Klectrical Machinery 518 505 507 531 548 546 559 561 573 580 '596 606 622 Electrical apparatus (generatins etc } 200 196 197 201 203 202 208 708 211 '713 217 227 Communication equipment. 181 176 173 182 193 200 201 203 207 '212 '218 220 Transportation Equipment. 995 f,014 998 1,017 986 808 806 078 872 879 '900 1,041 1,073 Motor vehicles and equipment . . 646 670 678 686 666 582 585 675 567 576 '596 731 Aircraft and parts 187 192 185 191 188 184 184 184 184 184 185 186 Ship and boat building and reoairins! 88 86 80 74 69 71 69 66 68 67 67 67 Lumber and Wood Products 686 676 686 684 689 692 682 642 652 677 693 724 751 Sawmills and planing mills.. 410 407 415 416 414 413 404 381 386 '399 '411 432 Millwork, plywood, etc 94 92 95 95 98 101 102 102 101 102 105 106 Furniture and Fixtures. . . 257 253 263 277 284 283 ?,80 280 207 301 303 303 300 Household furniture 181 179 187 199 206 207 211 71? 218 221 222 77? Stone, Clay, and Glass Products.. 409 400 412 414 411 411 412 403 40,?? 410 '419 433 443 Glass and glass products. .. 105 101 107 107 108 108 107 106 108 109 113 116 Structural clay products 73 72 72 72 71 70 71 69 68 69 69 74 Instruments and Related Products. 176 170 169 172 174 174 173 172 171 172 174 176 179 Miscellaneous Manufacturing Industries 333 313 347 366 383 381 361 345 356 '361 '362 361 363 21 19 18 18 18 17 17 17 17 18 18 19 19 r Revised. NOTE.—Factory employment covers production and related workers only; data shown include all full- and part-time production and related workers who worked during, or received pay for, the pay period ending nearest the 15th of the month. Figures for June 1950 are preliminary. Back data and data for industries not shown, without seasonal adjustment, may be obtained from the Bureau of Labor Statistics. Back data, seasonally adjusted, for groups and the total may be obtained from the Division of Research and Statistics. 1054 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FACTORY EMPLOYMENT, BY INDUSTRIES—Continued [Unadjusted, estimates of Bureau of Labor Statistics. Adjusted, Board of Governors] [Thousands of persons] 1949 1950 Industry group or industry June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June Nondurable goods 5,315 5,317 5,614 5,715 5,717 5,570 5,543 5,449 5,478 '5,479'5,400 5,387 5,454 Textile-mill Products 1,083 1,058 1,092 1,132 1,168 1,184 1,187 1,177 1,183 1,183 1,172 1,163 1,172 Yarn and thread mills 132 127 133 140 144 147 149 149 149 149 145 143 Broad-woven fabric mills 525 518 530 547 565 572 574 568 571 574 573 573 Knitting mills 203 200 211 219 227 230 227 223 223 221 218 213 Apparel and Other Finished Textiles 959 942 1,040 1,082 1,083 1,028 1,040 1,032 1,065 1,058 1,003 977 978 Men's and boys' suits, coats and overcoats 122 116 131 133 129 118 127 130 135 136 132 129 Men's and boys' furnishings 236 221 235 246 -252 251 247 241 244 245 241 238 Women's and misses' outerwear 258 263 306 319 308 280 296 302 315 305 271 254 Leather and Leather Products 339 342 356 354 349 332 343 348 357 357 341 336 342 Footwear (except rubber) 223 226 234 230 224 208 224 231 235 235 222 218 Food and Kindred Products 1,153 1,224 1,350 1,340 1,273 1,185 1,139 1,078 1,055 1,060 1,065 1,090 1,132 Meat products 226 227 229 230 236 242 251 244 232 r228 '223 227 Dairy products 122 122 116 110 104 99 96 95 97 99 103 108 Canning and preserving 169 220 339 322 232 160 136 117 110 109 120 127 Bakery products 192 191 194 196 199 195 190 186 188 190 191 193 Beverage industries 152 169 165 157 149 146 141 135 134 139 141 146 Tobacco Manufactures 84 82 91 94 92 89 87 85 81 78 76 76 75 Paper and Allied Products 369 365 371 384 392 393 390 385 386 389 391 392 397 Pulp, paper and paperboard mills 192 188 191 197 200 201 200 199 200 200 201 202 Printing, Publishing and Allied Industries 494 485 486 495 500 500 501 493 495 r496 r496 497 499 Newspapers 142 141 141 144 144 145 145 142 145 146 147 149 Commercial printing 164 162 161 162 166 165 168 167 165 165 165 164 Chemicals and Allied Products 464 453 458 478 488 485 484 480 485 487 490 485 480 Industrial inorganic chemicals 52 51 50 50 52 51 51 50 52 52 53 54 Industrial organic chemicals 139 136 135 140 141 143 144 144 144 145 146 148 Drugs and medicines 60 59 60 61 62 62 62 62 59 58 61 61 Products of Petroleum and Coal 189 189 190 189 185 188 185 184 183 182 176 177 182 Petroleum refining , 150 150 150 149 148 148 146 145 144 143 136 136 Rubber Products , 181 177 180 167 187 186 187 187 188 189 190 194 Tires and inner tubes 86 82 81 64 81 81 82 83 83 83 84 86 For footnotes see preceding page. HOURS AND EARNINGS OF FACTORY EMPLOYEES [Compiled by Bureau of Labor Statistics] Average weekly earnings Average hours worked Average hourly earnings (dollars per week) (per week) (dollars per hour) Industry group 1949 1950 1949 1950 1949 1950 June Apr. May June June Apr. May June June Apr. May June Manufacturing—Total 54.51 56.93 57.72 58.89 38.8 39.7 40.0 40.5 1.405 1.434 1.443 1.454 Durable goods 57.82 '60.97 61.72 63.14 39.2 '40.7 40.9 41.4 1.475 1.498 1.509 1.525 Primary metal industries 59.82 65.04 65.61 67.44 37.6 40.4 40.5 41.2 1.591 1.610 1.620 1.637 Fabricated metal products 57.39 '60.52 60.77 62.14 39.2 '40.7 40.7 41.4 1.464 "1.487 1.493 1.501 Machinery except electrical 59.94 64.33 65.13 66.13 39.2 41.0 41.3 41.8 1.529 1.569 1.577 1.582 Electrical machinery 56.16 '58.85 59.43 58.62 39.0 '40.7 40.9 40.4 1.440 "1.446 1.453 1.451 Transportation equipment 65.49 '70.38 69.79 72.97 39.5 '41.3 41.1 42.5 1.658 "1.704 1.698 1.717 Lumber and wood products 52.91 '53.36 54.51 n.a. 40.7 40.7 40.8 n.a. 1.300 "1.311 1.336 n.a. Furniture and fixtures 48.36 '51.67 51.42 52.08 39.0 41.3 41.2 41.4 1.240 "1.251 1.248 1.258 Stone, clay, and glass products 53.58 '56.56 57.32 58.40 39.4 '40.4 40.8 41.3 1.360 1.400 1.405 1.414 Instruments and related products 54.61 '57.26 57.99 58.56 39.2 39.9 40.3 40.5 1.393 '1.435 1.439 1.446 Miscellaneous manufacturing industries. 49.72 '51.86 52.64 52.14 39.4 40.2 40.4 40.2 1.262 1.290 1.303 1.297 Ordnance and accessories 58.72 61.43 61.54 61.92 39.7 40.6 40.7 40.5 1.479 1.513 1.512 1.529 Nondurable goods 50.97 '52.21 52.87 53.74 38.5 38.5 38.9 39.4 1.324 1.356 1.359 1.364 Textile-mill products 42.98 45.51 45.63 46.59 36.3 37.8 37.9 38.6 1.184 1.204 1.204 1.207 Apparel and other finished products... . 40.11 '40.87 41.30 41.81 35.4 35.2 35.7 35.8 1.133 1.161 1.157 1.168 Leather and leather products 41.46 '42.07 41.68 43.92 36.5 '35.9 35.5 37.6 1.136 1.172 1.174 1.168 Food and kindred products 53.62 '54.18 55.02 56.27 41.6 40.4 41.0 41.9 1.289 1.341 1.342 1.343 Tobacco manufactures 38.57 '38.59 39.56 41.42 38.0 35.5 36.6 38.0 1.015 1.087 1.081 1.090 Paper and allied products 54.54 '58.25 58.08 59.94 40.7 42.3 42.3 43.0 1.340 "1.377 1.373 1.394 Printing, publishing and allied industries 70.47 '72.18 72.68 72.38 38.7 38.6 38.7 38.6 1.821 1.870 1.878 1.875 Chemicals and allied products 59.08 '60.52 61.22 62.71 40.8 41.2 41.2 41.5 1.448 1.469 1.486 1.511 Products of petroleum and coal 71.84 '73.73 73.32 74.86 40.2 40.8 40.6 41.2 1.787 1.807 1.806 1.817 Rubber products 58.29 '61.80 64.40 n.a. 38.2 40.0 41.1 n.a. 1.526 1.545 1.567 n.a. r Revised. n.a. Not available. NOTE.—Data are for production and related workers, Figures for June 1950 are preliminary. Back data are available from the Bureau of Labor Statistics. 1055 AUGUST 1950 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EMPLOYMENT IN NONAGRICULTURAL ESTABLISHMENTS, BY INDUSTRY DIVISION [Unadjusted, estimates of Bureau of Labor Statistics. Adjusted, Board of Governors] [Thousands of persons] Transporta- Federal, Year or month Total M t a u n r u in fa g c^ Mining co C n o st n r t u r c a t c i t on ti p o u n b a li n c d Trade * Finance Service 1 Sta l t o e c , a a l nd utilities government 1941 36,164 12,974 947 1,790 3,248 7,567 1,462 3,554 4,622 1942 39,697 15,051 983 2,170 3,433 7,481 1,440 3,708 5,431 1943 42,042 17,381 917 1,567 3,619 7,322 1,401 3,786 - 6,049 1944 41,480 17,111 883 1,094 3,798 7,399 1,374 3,795 6,026 1945 . . 40,069 15,302 826 1,132 3,872 7,685 1,394 3,891 5,967 1946 41,412 14,461 852 1,661 4,023 8,815 1,586 4,408 5,607 1947 . ...... 43,371 15,247 943 1,982 4,122 9,196 1,641 4,786 5,454 1948 44,201 15,286 981 2,165 4,151 9,491 1,716 4,799 5,613 1949 43,006 14,146 932 2,156 3,977 9,438 1,763 4,781 5,813 SEASONALLY ADJUSTED 1949—June 42,896 14,007 965 2,100 4,003 9,456 1,756 4,786 5,823 Tulv 42,711 13,917 936 2,128 3,968 9,383 1,754 4,779 5,846 August 42,864 13,979 949 2,167 3,947 9,420 1,762 4,788 5,852 September 43,068 14,108 943 2,188 3,939 9,453 1,780 4,785 5,872 October . ... 42,163 13,706 591 2,203 3,877 9,386 1,785 4,770 5,845 November 42,385 13,695 917 2,200 3,895 9,306 1,784 4,768 5,820 December 42,710 13,922 940 2,131 3,930 9,426 1,788 4,762 5,811 1950—January 42,544 14,016 867 2,109 3,902 9,337 1,781 4,748 5,784 February 42,246 14,021 604 2,091 3,874 9,323 1,786 4,768 5,779 March '42,764 '14,130 r944 '2,096 3,906 '9,341 '1,791 '4,780 5,776 April '43,258 '14,302 '941 ••2,154 '3,947 '9,424 1,794 '4,781 '5,915 May 43,608 14,638 939 2,212 3,890 9,465 1,803 4,792 5,869 June . ... 43,920 14,771 937 2,283 3,972 9,517 1,807 4,781 5,852 UNADJUSTED 1949—june 42,835 13,884 968 2,205 4,031 9,336 1.774 4,834 5,803 July 42,573 13,757 943 2,277 4,007 9,220 11,780 4,851 5,738 August 42,994 14,114 956 2,340 3,992 9,213 L.780 4,836 5,763 September 43,466 14,312 948 2,341 3,959 9,409 1,771 4,833 5,893 October 42,601 13,892 593 2,313 3,871 9,505 L,767 4,794 5,866 November . . 42,784 13,807 917 2,244 3,892 9,607 1,766 4,768 5,783 December 43,694 14,031 940 2,088 3,930 10,156 1,770 4,738 6,041 1950—January 42,125 13,980 861 1,919 3,869 9,246 1,772 4,701 5,777 February 41,661 13,997 595 1,861 3,841 9,152 L.777 4,696 5,742 March '•42,295 '14,103 '938 '1,907 3,873 '9,206 '1,791 '4,708 5,769 April ••42,913 ••14,167 ••938 '2,068 '3,927 '9,338 1,803 '4,757 '5,915 May 43,312 14,416 938 2,234 3,887 9,333 1,812 4,792 5,900 June 43,865 14,645 941 2,397 4,000 9,396 1,825 4,829 5,832 ' Revised. 1 Data for the trade and service divisions, beginning with January 1947, are not entirely comparable with data shown for the earlier period because of the shift of automotive repair services (230,000 employees in January 1947) from trade to services. NOTE.—Data include all full- and part-time employees who worked during, or received pay for, the pay period ending nearest the 15th of the month. Proprietors, self-employed persons, domestic servants, and personnel of the armed forces are excluded. June 1950 figures are preliminary. Back unadjusted data are available from the Bureau of Labor Statistics; seasonally adjusted figures beginning January 1939 may be obtained from the Division of Research and Statistics. LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT [Bureau of the Census estimates without seasonal adjustment. Thousands of persons 14 years of age and over] Civilian labor force Year or month in T p s o o t p t i a t u u l l t a n i t o o io n n n a - l T l f a o o b r t c o a e r l Total Employed x Unem- l N ab o o t r i n f o t r h c e e Total In nonagricul- In ployed tural industries agriculture 1942 102,460 60,230 56,410 53,750 44,500 9,250 2 660 42 230 1943 ... . . ... 103,510 64,410 55,540 54,470 45,390 9,080 1,070 39,100 1944 104,480 65,890 54,630 53,960 45,010 8,950 670 38,590 1945 105,370 65,140 53,860 52,820 44,240 8,580 1,040 40 230 1946 106,370 60,820 57,520 55,250 46,930 8,320 2,270 45,550 1947 107,458 61,608 60,168 58,027 49,761 8,266 2 142 45 850 1948 ... 108,482 62,748 61,442 59,378 51,405 7,973 2,064 45,733 1949 109,623 63,571 62,105 58,710 50,684 8,026 3,395 46,051 1949—june 109,547 64,866 63,398 59,619 49,924 9,696 3,778 44,683 July 109,664 65,278 63,815 59,720 50,073 9,647 4 095 44 385 August 109,760 65,105 63,637 59,947 51,441 8,507 3,689 44,655 September 109,860 64,222 62,763 59,411 51,254 8,158 3,351 45,638 October 109,975 64,021 62,576 59,001 51,290 7,710 3 576 45 953 November 110,063 64,363 62,927 59,518 51,640 7,878 3,409 45,701 December 110,169 63,475 62,045 58,556 51,783 6,773 3,489 46,694 1950—January 110,256 62,835 61,427 56,947 50,749 6,198 4,480 47,420 February . 110,344 63,003 61,637 56,953 50,730 6,223 4 684 47 342 March 110,442 63,021 61,675 57,551 50,877 6,675 4,123 47,422 April . 110,536 63,513 62,183 58,668 51,473 7,195 3,515 47,024 May . . .. 110,608 64,108 62,788 59,731 51,669 8 062 3 057 46 500 June . ..... 110,703 66,177 64,866 61,482 52,436 9,046 3,384 44,526 1 Includes self-employed, unpaid family, and domestic service workers. NOTE.—Details do not necessarily add to group totals. Information on the labor force status of the population is obtained through interviews of households on a sample basis. Data relate to the calendar week that contains the eighth day of the month. Back data are available from the Bureau of the Census. 1056 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 Residential Public works Total building and public Month Factories Commercial Educational Other utilities 1949 1950 1949 1950 1949 1950 1949 1950 1949 1950 1949 1950 1949 1950 January 483.0 730.9 159.1 343.5 43.6 37.7 62.6 60.6 38.1 63.5 77.6 73.5 102.0 152.1 February 568.5 779.5 193.1 361.5 37.8 27.9 58.8 58.3 44.7 58.0 80.6 121.4 153.5 152.5 March 747.61,300.2 251.8 574.7 66.2 161.5 88.4 88.6 60.4 96.3 112.4 154.3 168.4 224.9 April 845.91,350.5 307.2 674.8 43.8 119.2 92.0 106.8 68.4 97.0 112.2 125.6 222.4 227.0 May 885.41,347.6 351.3 674.6 51.5 83.7 68.5 96.4 76.0 100.2 124.6 128.3 213.5 264.5 June 949.9 375.0 45.4 70.9 81.4 138.3 239.0 July........ 947.8 344.8 41.5 73.4 91.2 144.2 252.7 August 911.0 398.7 41.1 64.4 72.9 99.6 234.3 September 1,071.7 503.5 38.0 103.9 78.6 124.5 223.1 October 1,061.8 500.7 48.9 82.8 83.6 141-8 204.0 November 957.8 435.2 35.9 58.6 62.3 109.3 256.4 December 929.0 419.1 64.8 60.7 66.9 110.8 206.8 Year... 10,359.3 4,239.4 558.6 885.0 824.4 1,375.9 2,476 0 CONSTRUCTION CONTRACTS AWARDED, BY OWNERSHIP CONSTRUCTION CONTRACTS AWARDED, BY DISTRICT Figures for 37 States east of the Rocky Mountains, as reported by the V. Dodge Corporation. Value of contracts in millions of dollars] [Figures for 37 States east of the Rocky Mountains, as reported by the F. W. Dodge Corporation. Value of contracts in thousands of dollars] Total Public ownership Private ownership Month 1948 1949 1950 1948 1949 1950 1948 1949 1950 1950 1949 Federal Reserve district January... 615 483 731 197 160 201 419 323 530 February. . 682 568 780 248 252 285 434 317 495 June May June March 690 7481,300 181 282 481 509 466 819 April 874 8461,350 236 319 354 638 527 996 May 971 8851,348 298 369 389 673 517 959 Boston 95,543 71,632 53,361 J Ju u l n y e 9 9 3 63 5 9 9 5 48 01,345 3 3 3 35 8 3 4 7 10 5 428 5 6 9 28 7 5 53 7 7 4 917 N Ph e i w la d Y e o lp rk hia 20 6 5 7 , , 6 4 4 4 2 8 23 5 7 7 , , 6 9 7 0 6 4 1 4 5 3 9 , , 4 2 8 2 9 9 August.... 854 911 276 316 579 595 Cleveland 147,611 137,553 87,761 September. 762 1,072 259 289 503 783 Richmond 119,058 129,857 97,524 October 779 1,062 262 332 517 730 Atlanta 139,339 163,445 121,764 November. 611 958 199 316 413 642 Chicago 264,888 254,766 165,363 December.. 694 929 278 299 416 630 St. Louis 80,299 89,816 74,223 Minneapolis 72,999 51,149 40,737 Year 9,430 10,359 3,107 3,718 6,3236,641 Kansas City 59,219 54,001 40,748 Dallas 93,417 99,804 66,177 LOANS INSURED BY FEDERAL HOUSING ADMINISTRATION Total (11 districts) 1,345,463 1,347,603 949,876 [In millions of dollars] Title 1loans Mortgages on Rental War and INSURED FHA HOME MORTGAGES (TITLE II) HELD IN Year or month Total m p P e r i r e o m r o n t v y p - t e - x - s S h c t t m o i r o o u m n a n c - l e - l 1 h f ( a - o T m I u t I i o s ) t i l l e 4 e y s - h g ( o T a r I u o n D i s t u d i l n p e g h e ( o V V T r u a e I i s n ) t t i 2 l - s n e ' g PORTFOLIO, [ In B m Y i l C li L on A s S o S f O do F ll a I r N s] STITUTION Sav- 1 1 1 1 1 9 9 9 9 9 4 4 4 4 4 2 3 4 5 1 1 1 , , 1 1 9 8 6 7 3 6 3 7 2 6 5 5 7 2 1 1 1 4 8 4 7 1 9 7 1 1 4 2 1 1 5 1 8 6 2 2 2 7 9 4 1 1 7 1 5 9 6 (8 1 ) 6 4 7 3 2 6 5 27 8 3 0 1 2 4 7 3 3 End of month Total b C m c a o i n e a m r k l - s - b M s i t a n u a n g v a u k s l - - s a a l i s a t o n s i n a o g o d n c s n i s - p I c a n a o n n s m c u i e e - r s - a c F e g i e e r e a d s n l - 1 - Other2 1946 755 321 (8) 347 3 85 1947 1,787 534 (8) 446 808 1948 3,338 614 880 1,836 1936—Dec 365 228 8 56 41 5 27 1949 43,821 594 13 1,855 7 1,339 1937—Dec 771 430 27 110 118 32 53 1949— J A S O N D j u e u u o e c l n p y c g v t e t e o u e e m m s b m t e b b b r e e e . r r . r . . # . . . . . 4 4 3 3 3 3 3 3 3 1 8 5 0 8 7 2 7 2 6 9 3 1 3 4 4 5 6 6 5 7 9 0 5 0 5 8 1 (3) 3 2 2 1 2 1 1 1 1 1 1 0 5 4 7 8 6 8 1 3 6 2 9 3 8 (») 1 1 1 1 9 8 6 3 2 8 2 4 1 0 4 7 6 8 1 1 1 1 1 1 1 9 9 9 9 9 9 9 3 4 4 3 4 4 4 9 1 0 8 3 4 2 — — — — — — — D D D D D D D e e e e e e e c c c c c c c 3 3 3 2 3 1 1 , , , , , , , 1 6 6 7 4 1 3 0 9 9 0 2 2 9 7 3 9 9 6 0 9 1 1 1 1 1 , , , , , 1 4 6 7 5 6 9 6 6 6 0 9 0 3 2 5 9 5 0 2 4 2 2 2 1 1 3 5 3 6 8 3 7 8 6 6 0 6 0 1 2 2 2 2 2 1 1 2 9 7 5 6 9 4 4 2 6 4 9 2 9 1 1 1 , , , 0 0 1 2 3 5 7 3 7 3 1 4 4 8 2 2 4 2 2 2 9 2 2 2 1 3 4 0 6 7 5 7 4 5 1 8 7 3 9 1 1 1 1 1 1 9 7 3 6 5 4 5 0 9 3 3 0 0 9 1950—January 4337 57 228 51 1945—June 3,324 1,570 265 264 1,047 43 134 February 4 329 44 203 73 Dec 3,156 1,506 263 253 1,000 13 122 March 4 353 44 209 (8) 88 April 4 329 27 171 122 1946—June 3,102 1,488 260 247 974 11 122 May. . . «351 48 176 1 110 Dec 2,946 1,429 252 233 917 9 106 June 4 376 78 181 1 113 1947—June 2,860 1,386 245 229 889 8 102 1 Net proceeds to borrowers. 2 Mortgages insured under War Dec 2,871 1,379 244 232 899 7 110 Housing Title VI through April 1946; figures thereafter represent mainly mortgages insured under the Veterans' Housing Title VI 1948—June 2,988 1,402 251 245 973 7 110 (approved May 22, 1946) but include a few refinanced mortgages Dec 3,237 1,429 265 269 1,113 9 152 originally written under the War Housing Title VI. Beginning with December 1947, figures include mortgages insured in connection with 1949—June 3,894 1,587 305 323 1,431 21 227 sale of Government owned war housing, and beginning with February Dec 4,751 1,771 378 416 1,828 52 305 1948 include Insured loans to finance the manufacture of housing. a Less than $500,000, 4 Includes mortgages insured on new rental housing at or near mili- xThe RFC Mortgage Company, the Federal National Mortgage tary installations under Title VIII, enacted Aug. 8, 1949. Association, the Federal Deposit Insurance Corporation, and the and N O d T o E n . o — t F ta ig k u e r e a s c c r o ep u r n e t s o en f t p r g i r n o c s i s p a in l s r u e r p a a n y c m e e w n r t i s t t o e n n p d r u e r v i i n o g u s t l h y e in p s e u ri r o e d d Un 2 i I te n d c lu S d ta in te g s m H o o r u tg s a in g g e c C o o m rp p o a r n a i t e i s o , n f . inance 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. AUGUST 1950 1057 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MERCHANDISE EXPORTS AND IMPORTS [In millions of dollars] Merchandise exports * Merchandise imports 2 Excess of exports Month 1946 1947 1948 1949 1950 1946 1947 1948 1949 1950 1946 1947 1948 1949 1950 January 798 1,114 1,092 1,104 P746 394 531 547 590 P623 405 583 545 515 P122 February 670 1,146 1,085 1,043 P773 318 437 589 567 P600 352 709 496 477 P173 March 815 L,326 L,139 ''1,189 P868 385 445 675 633 P664 431 882 464 »-557 P204 April 757 L,294 1,121 '1,172 P810 406 512 532 535 P583 351 782 590 '638 P227 May 851 1,414 1,103 rl,095 P825 393 474 554 541 P659 457 940 549 '554 P166 June 878 1,235 1.014 1,107 P876 382 463 625 526 P686 496 772 389 581 P190 July 826 1,155 1,019 P900 431 450 564 P457 395 705 456 s>443 August 883 1,145 992 P883 422 400 606 P491 461 745 386 P393 September.... 643 1,112 926 P909 377 473 560 P530 266 639 365 P379 October . . 537 L.235 1,023 »853 394 492 600 P557 142 743 423 »296 November 986 1,141 823 P841 478 455 554 P593 508 687 269 P248 December 1 097 114 1 318 P944 529 603 720 P605 567 511 598 P339 Jan.-June 4,769 7,529 6,553 6,711 P4.898 2,277 2,861 3,520 3,390 P3,815 2,492 4,668 3,033 3,321 P1,082 P Preliminary. r Revised. 1 Including both domestic and foreign merchandise. Beginning January 1948, recorded exports include shipments under the Army Civilian Supply Program for occupied areas. The average monthly value of such unrecorded shipments in 1947 was 75.9 million dollars. 2 General imports including merchandise entered for immediate consumption and that entered for storage in bonded warehouses. Source.—Department of Commerce. Back figures.—See BULLETIN for March 1947, p. 318; March 1943, p. 261; February 1940, p. 153; February 1937, p. 152; July 1933, p. 431; and January 1931, p. 18. FREIGHT CARLOADINGS, BY CLASSES REVENUES, EXPENSES, AND INCOME OF CLASS [Index numbers, 1935-39 average = 100] RAILROADS For- Mis- Mer- [In millions of dollars] Total Coal CokeGrain s L t i o v c e k - p e r s o t d- Ore l c a e n l e - - c d h i a s n e - Annual ucts ous l.c.l. r o r e p a T v i e e o l r w n t a a u t a l i e y n s g e r x a T p i o l e w t n a a s l e y s o r i p a n N i e c l r o w e a m t t a i y e ng in N co e m t e 1939 101 98 102 107 96 100 110 101 97 1940 109 111 137 101 96 114 147 110 96 1941 130 123 168 112 91 139 183 136 100 Annual 1942: 138 135 181 120 104 155 206 146 69 1939 3,995 3,406 589 93 1943 137 138 186 146 117 141 192 145 63 1940 4,297 3,614 682 189 1944 140 143 185 139 124 143 180 147 67 1941 5,347 4,348 998 500 1945 135 134 172 151 125 129 169 142 69 1942 7,466 5,982 1,485 902 1946 132 130 146 138 129 143 136 139 78 1943 9,055 7,695 1,360 873 1947 143 147 182 150 107 153 181 148 75 1944 9,437 8,331 1,106 667 1948 138 141 184 136 88 149 184 146 68 1945 8,902 8,047 852 450 1949 116 100 145 142 77 123 151 127 57 1946 7,628 7,009 620 287 1947 8,685 7,904 781 479 SEASONALLY 1948 9,672 8,670 1,002 699 ADJUSTED 1949 P8,580 P7.893 P687 P438 1949—May 124 130 173 150 73 123 215 126 59 June ••114 98 150 156 70 122 182 122 58 SEASONALLY July 110 79 118 177 70 117 177 120 55 ADJUSTED August 117 103 123 138 77 125 160 127 57 September... 105 60 130 125 79 121 145 125 52 1949—May 737 676 61 29 October 92 42 54 153 85 124 28 111 54 June 748 677 71 38 November... 117 131 96 152 75 137 42 119 54 July 701 650 51 19 December. . . 115 97 148 131 72 134 146 127 52 August. . . . 697 659 38 5 September., 685 633 52 19 1950—January 117 97 151 119 70 118 169 133 52 October 623 592 31 0 February.... 104 46 122 113 65 119 156 130 52 November.. 708 636 72 39 March...... 127 139 143 126 67 123 134 134 53 December., 712 632 81 49 April 126 123 181 131 68 129 121 137 53 May 122 119 181 127 66 134 121 133 51 1950—January.... 689 629 60 29 June 127 116 192 130 61 144 179 138 52 February.. 638 606 32 1 March 723 655 67 36 UNADJUSTED April...;. , 730 667 63 32 1949—May 125 130 171 132 66 128 267 127 59 May 715 661 54 P2S June 119 98 147 159 54 127 282 126 57 July 115 79 115 212 60 117 284 121 55 UNADJUSTED August 120 103 119 149 73 131 240 128 57 September... 114 60 128 140 104 130 218 135 55 1949—May , 741 ••684 58 32 October 99 42 53 153 131 131 35 121 56 June 735 674 61 42 November... 120 131 96 149 95 135 51 124 55 July 701 650 50 27 December. . . 107 97 155 123 69 119 45 120 50 August 743 677 66 39- September., 695 631 64 38 1950—January . 107 97 158 119 68 106 42 122 49 October 649 602 47 24 February.... 96 46 130 111 52 115 39 122 51 November., 705 629 76 54 March 120 139 144 116 53 123 39 127 54 December., 711 642 69 82 April 122 123 177 115 61 129 63 135 54 May 125 119 179 112 59 139 217 135 51 1950—January 657 624 33 11 June 131 116 188 133 51 150 277 142 52 February.. 585 570 15 -9 March 743 668 76 April , 714 652 62 NOTE.—For description and back data, see BULLETIN for June 1941, pp. May 745 678 67 529-533. Based on daily average loadings. Basic data compiled by Association of American Railroads. Total index compiled by combining indexes for classes with weights derived from revenue data of the Interstate Commerce P Preliminary. r Revised. Commission. NOTE.—Descriptive material and back figures may be obtained from the Division of Research and Statistics. Basic data compiled by the Interstate Commerce Commission- Annual figures include revisions not available monthly. 1058 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DEPARTMENT STORE STATISTICS [Based on retail value figures] SALES AND STOCKS, BY FEDERAL RESERVE DISTRICTS [Index numbers, 1935-39 average =100) Federal Res<;rve district Year or month U S n t i a t t e e d s Boston Y N o e r w k a P p d h h e i i l l a - - C l l a e n ve d - m Ri o c n h d - l A a t nt - a c C a hi g - o Lo S u t. is M a i po n l n i e s - K C a i n t s y as Dallas F c S r i a a sc n n o - SALESi 1945 207 176 169 184 201 235 275 193 227 185 229 275 248 1946 264 221 220 235 257 292 344 250 292 247 287 352 311 1947 286 234 239 261 281 304 360 275 314 273 311 374 337 1948 302 239 249 284 303 321 386 290 335 288 325 404 353 1949 286 234 233 271 281 307 374 271 317 275 309 385 332 SEASONALLY ADJUSTED 1949—June , ., 285 242 '240 269 281 ••313 368 262 314 266 309 '384 335 July 280 227 222 261 274 326 377 258 325 261 304 387 329 August 283 234 234 268 269 304 360 275 326 269 299 374 333 September 289 241 238 277 279 306 367 283 332 276 312 374 326 October. 276 211 223 260 259 295 376 258 309 278 301 387 337 November 277 234 227 267 266 305 367 262 300 267 299 371 319 December 293 239 237 276 283 311 382 281 330 293 322 403 339 1950—January 282 244 229 267 290 300 376 274 282 246 300 396 316 February 280 229 220 276 271 299 383 262 300 284 301 409 323 March 274 216 217 262 270 288 374 265 297 249 298 389 321 April.. 292 244 235 281 299 323 397 269 319 277 307 401 333 May ... 290 ••231 226 270 299 320 390 277 330 268 309 403 '336 June P29S ?240 242 285 299 332 P392 278 326 287 P322 410 343 UNADJUSTED 1949—june '269 232 ••228 256 265 '289 '324 262 283 255 284 r330 314 July 218 155 155 188 214 236 294 212 254 211 249 310 280 August 238 173 171 201 234 243 324 228 280 242 275 333 313 September 299 248 243 280 282 328 381 297 335 307 328 404 331 October 293 234 243 279 274 314 395 271 331 314 325 414 339 November 339 292 293 355 332 378 426 324 378 310 347 442 358 December 481 418 401 472 465 541 642 438 504 438 505 662 565 1950—January 216 185 183 197 215 218 285 205 232 188 228 313 251 February 224 177 183 207 217 234 322 204 252 210 244 327 273 March 257 207 208 255 256 283 359 241 285 228 277 362 291 April. 285 241 225 276 290 313 389 269 316 278 304 393 321 May 286 '228 221 275 296 315 378 280 323 273 306 391 '319 June P281 P230 230 271 281 306 *>345 278 293 276 P296 353 321 STOCKS i 1945 166 153 160 150 156 198 188 159 166 165 158 190 183 1946 213 182 195 191 205 248 258 205 225 212 209 251 238 1947 255 202 225 220 243 289 306 246 274 266 259 320 300 1948 291 223 241 252 277 322 362 281 314 326 301 389 346 1949 270 210 221 233 256 301 339 260 296 299 276 362 323 SEASONALLY ADJUSTED 1949—june '266 207 '220 232 249 311 325 257 280 301 268 357 313 July.. 256 193 213 224 228 302 319 253 267 283 263 354 302 August 253 183 204 216 229 295 319 250 264 290 264 349 309 263 195 213 232 242 295 337 252 280 296 258 356 334 October 270 206 216 231 252 305 347 265 298 298 278 366 325 November 273 219 221 231 258 295 352 261 308 305 284 365 329 December. . . .. 271 228 227 232 262 295 352 253 309 292 276 351 321 1950—January 272 223 227 234 256 291 357 264 288 304 283 353 322 February. 279 222 224 234 269 307 350 262 321 308 283 364 343 March 285 233 231 239 276 324 353 264 326 307 294 362 355 April.. 286 231 230 249 283 329 360 265 329 316 296 375 341 May 285 228 228 244 280 331 370 265 313 322 295 380 338 June P276 215 222 244 265 338 P359 258 299 2>304 P288 375 324 UNADJUSTED 1949—June 256 199 '208 218 244 280 312 247 280 291 268 336 315 July 245 188 189 202 228 282 300 233 278 290 257 333 311 August 254 192 204 212 242 298 316 242 287 287 259 346 308 September 274 210 225 241 264 309 347 259 311 301 263 367 334 October 297 232 244 265 287 339 379 288 333 313 298 384 346 November 305 249 255 266 279 327 395 298 329 331 313 405 365 December 244 205 207 204 219 267 306 237 259 270 246 323 293 1950—January 244 198 200 204 224 267 321 238 248 279 257 328 294 February 267 209 217 230 251 299 354 254 289 296 278 357 323 March 290 226 237 251 273 334 371 274 317 319 300 384 348 April 294 227 237 259 287 344 378 273 329 321 305 393 347 May » 289 226 231 ••249 283 337 366 268 313 323 301 380 350 June P267 206 209 229 261 305 P345 248 299 P294 P288 353 326 P Preliminary. ' Revised. 1 Figures for sales are the average per trading day, while those for stocks are as of the end of the month or the annual average. NOTE.—For description and monthly indexes for back years for sales see BULLETIN for June 1944, pp. 542-561, and for stocks see BULLETIN for June 1946, pp. 588-612. AUGUST 1950 1059 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 Ratio of Index numbers from a year ago stocks to without seasonal adjustment (value) sales l 1941 average monthly sales =100 2 Num- Department r b s e e t p o r o r r e o t s - f Sale p s er d io ur d ing m S ( t o e o n n c d t k h o s ) f May Sale pe s r i d o u d ring Sto o c f k m s o a n t t e h nd ing Five 1950 1949 1950 1949 lviay months TlVv iIta-.yy 1950 1949 1950 1950 1950 May Apr. May May Apr. May GRAND TOTAL—entire store 3. 354 +1 _4 +3 2.9 2.9 MAIN STORE—total 354 +2 -3 +3 3.1 3.1 203 195 199 635 650 616 Piece goods and household textiles 315 -4 -11 +4 3.5 3.3 185 154 192 656 687 627 Piece goods 289 -15 -23 —4 3.3 3.0 208 197 244 694 747 721 Silks, velvets and synthetics 193 -19 -27 -7 3.3 2.9 165 172 202 549 634 532 Woolen yard goods 171 —7 -24 -2 11.0 10.4 65 116 70 716 743 696 Cotton yard goods 184 -11 -15 + 1 2.3 2.0 325 268 366 735 845 729 Household textiles 305 +5 -2 +9 3.6 3.4 175 132 168 638 654 587 Linens and towels 278 +7 + 1 +4 4.1 4.3 160 126 149 659 662 630 Domestics—muslins, sheetings 247 +3 -6 +21 3.3 2.8 199 134 193 649 673 534 Blankets, comforters, and spreads 243 +4 -1 +4 3.4 3.4 165 123 159 562 555 546 Small wares 344 -1 -3 +2 3.7 3.6 170 154 171 626 642 613 Laces, trimmings, embroideries, and ribbons. . 207 +2 -6 0 2.9 3.0 246 266 242 721 801 722 Notions 242 -2 -5 +4 2.8 2.6 271 232 275 752 784 721 Toilet articles, drug sundries 326 +7 +1 +3 3.6 3.7 144 129 135 516 509 502 Silverware and jewelry 317 -11 -10 +1 4.2 3.7 188 156 210 795 817 787 Silverware and clocks 4 214 0 -6 -f-1 5.4 5.4 Costume jewelry4 277 +2 -9 +3 2.7 2.7 Fine jewelry and watches 4 76 -37 -14 +2 6.9 4.3 Art needlework 240 +1 -9 0 5.6 5.6 117 115 116 655 660 657 Books and stationery 273 +2 +1 +5 3.9 3.8 148 145 145 582 594 560 Books and magazines 139 -4 -3 +2 3.8 3.6 122 126 127 462 410 458 Stationery 238 +5 +3 +6 4.0 4.0 147 133 140 586 606 557 Women's and misses' apparel and accessories 351 -2 -8 +3 2.4 2.2 205 212 209 484 511 470 Women's and misses' ready-to-wear accessories. 351 +2 -5 +5 2.8 2.7 200 209 196 562 588 534 Neckwear and scarfs 310 +13 0 -2 2.1 2.4 234 276 207 482 518 502 Handkerchiefs 285 + 1 -8 +1 3.8 3.8 124 119 123 468 497 459 Millinery 168 +4 -4 0 1.0 1.1 151 252 145 154 179 155 Women's and children's gloves 326 +10 —5 +5 3.8 4.0 133 189 121 504 531 486 Corsets and brassieres 338 0 -4 +6 2.7 2.6 272 258 270 738 748 692 Women's and children's hosiery 344 +5 -3 +6 1.8 1.8 157 154 149 284 309 268 Underwear, slips, and negligees 343 -3 -11 +7 2.6 2.3 230 174 237 594 629 551 Knit underwear 255 +1 -4 +15 2.7 2.4 273 213 269 736 766 636 Silk and muslin underwear, and slips 287 -5 -14 +5 2.6 2.4 226 168 238 592 630 565 Negligees, robes, and lounging apparel 252 —3 -12 +2 2.2 2.1 204 147 211 443 463 431 Infants' wear 324 +2 —4 +4 3.2 3.2 217 252 212 703 732 683 Handbags and small leather goods 333 +4 -4 +2 2.2 2.2 192 210 184 418 443 409 Women's and children's shoes 242 +2 -2 +7 4.2 4.0 224 244 219 939 966 877 Children's shoes 4 208 +7 —4 +8 4.8 4.7 Women's shoes 4 218 +2 -1 +7 4 1 3.9 Women's and misses' ready-to-wear apparel.. . 351 -6 -12 1.9 1.8 210 215 223 399 429 401 Women's and misses' coats and suits 340 +2 -13 -17 1.6 2.0 149 252 145 244 328 292 Coats 4 209 +2 -18 —24 1.4 1.9 Suits4 205 +7 -5 -8 1.9 2.2 Juniors' and girls' wear 317 -7 -12 +1 2.0 1.8 232 256 250 456 471 453 Juniors' coats, suits, and dresses 292 -11 -14 1.4 1.3 254 265 285 364 386 376 Girls' wear 315 -3 -9 +4 2.7 2.6 213 262 219 582 605 562 Women's and misses' dresses 342 -9 -12 +2 1.4 1.2 264 221 292 359 377 356 Inexpensive dresses 4 , 255 -13 -14 —2 1.1 1.0 Better dresses4 267 -5 -9 +4 1.7 1.6 Blouses, skirts, and sportswear 341 -2 -8 +1 2.4 2.3 262 231 266 626 635 618 Aprons, housedresses, and uniforms 288 -12 -12 +12 1.6 1.3 280 192 319 456 482 408 Furs 266 +26 -15 0 12.8 16.1 25 44 20 323 290 323 Men's and boys' wear 330 +1 -2 +3 4.3 4.2 177 177 175 758 737 740 Men's clothing 253 +1 0 -2 4.1 4.2 198 185 196 809 810 831 Men's furnishings and hats 314 -1 -4 +7 4.3 4.0 162 153 164 700 661 655 Boys' wear 301 +5 -4 +4 4.3 4.4 170 222 162 736 740 716 Men's and boy's shoes and slippers 190 +10 +4 +6 5.3 5.4 172 180 157 913 908 879 Housef urnishings 317 +10 +9 +3 3.6 3.8 241 208 219 869 863 837 Furniture and bedding •, 243 +11 + 10 +1 3.6 4.0 217 185 194 787 805 775 Mattresses, springs and studio beds4 164 +12 + 12 +10 1.8 1.8 Upholstered and other furniture4 172 + 12 +9 +1 4 2 4 6 Domestic floor coverings 274 +8 -1 -3 4.0 4.4 212 177 197 853 868 874 Rugs and carpets4 155 +6 -1 —2 4.2 4.6 Linoleum 4 100 -14 -15 -7 3 6 3 4 Draperies, curtains, and upholstery 297 +5 -1 +6 3.3 3.3 245 195 234 809 803 758 Lamps and shades 249 +8 +2 +5 3.6 3.7 197 184 183 718 761 690 China and glassware 251 +10 +5 -1 6.7 7.4 155 142 140 1,040 1,067 1,044 Major household appliances 248 +5 +13 +4 2.6 2.6 299 234 284 775 713 734 Housewares (including minor appliances) 261 +5 0 +4 3.1 3.2 312 264 296 979 987 941 Gift shop 4 168 +11 +7 +3 4.7 5.1 Radios, phonographs, television, records, etc.4. 229 +47 +75 +26 3.4 4.0 Radios, phonographs, television 4 187 +60 +104 +41 3.0 Records, sheet music, and instruments 4..... 128 -4 0 6.3 6!2 Miscellaneous merchandise departments 317 +4 -2 -1 3.0 3.2 190 188 182 567 567 568 Toys, games, sporting goods, and cameras 294 +5 0 0 4.9 5.1 141 139 135 687 718 683 Toys and games 238 +11 +3 +2 4.9 5.4 115 108 104 570 515 547 Sporting goods and cameras 146 -1 -5 4.8 4.9 144 140 145 693 808 705 Luggage 262 —2 -6 -1 3.3 3.3 235 156 240 783 770 789 Candy 4 194 +9 -3 0 1.2 1.3 For footnotes see following page. 1060 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—Continued Per cent change Ratio of Index numbers from a year ago stocks to without seasonal adjustment (value) sales x 1941 average monthly sales=100 2 Department r b N s e t e p o u r o r m e o rt s - f - Sale p s e r d io u d ring m ( S e t n o o d n c t k o h s f ) May Sale p s e r d io u d ring Sto o c f k m s o at n t e h nd ing M 19 a 5 y 0 m F o i n ve ths M 19 a 5 y 0 1950 1949 1950 1949 1950 1949 1950 May Apr. May May Apr. May BASEMENT STORE—total . 203 -3 -9 +2 2.1 2.0 210 202 217 433 450 425 Domestics and blankets * 137 -2 -6 +5 2.5 2.4 Women's and misses' ready-to-wear 198 -5 -12 1 1.6 1.5 215 214 227 340 358 344 Intimate apparel * 173 -1 -7 +3 1.9 1.8 Coats and suits * 185 0 -17 -23 1.1 1.4 Dresses ^ 182 -12 -15 +1 1.0 0.9 Blouses skirts and sportswear ^ 162 -2 -10 +2 1.9 1.8 128 -2 -8 +2 2.1 2.0 Infants' wear ^ 121 i -5 +6 2.6 2.4 Men's and boys' wear 160 0 -4 +8 2.7 2.4 218 212 218 581 574 540 IVten's wear ^ 137 -2 -4 +8 2.6 2.3 92 +1 -2 +5 2.5 2.4 Mien's furnishinsrs ^ 116 -6 + 11 2.6 2.3 Boys' wear4 121 +6 _4 +5 2.9 2.9 Housefurnisliings . . . 106 +3 -2 +3 2.2 2.2 217 177 210 477 513 465 Shoes 124 -1 -4 +2 3.3 3.2 165 173 166 548 565 548 NONMERGHANDISE—total 4 169 +2 -2 (5) (5) (5) Barber and beauty shop 4 73 +2 +2 (5) (5) (5) 1 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. 2 The 1941 average of monthly sales for each department is used as a base in computing the sales index for that department. The stocks index is derived by applying to the sales index for each month the corresponding stocks-sales ratio. For description and monthly indexes of sales and stocks by department groups for back years, see BULLETIN for August 1946, pp. 856-858. The titles of the tables on pp. 857 and 858 were reversed. 3 For movements of total department store sales and stocks see the indexes for the United States on p. 1059. 4 Index numbers of sales and stocks for this department are not available for publication separately; the department, however, is included in group and total indexes. 5 Data not available. NOTE.—Based on reports from a group of large department stores located in various cities throughout the country. In 1949, sales and stocks at these stores accounted for almost 50 per cent of estimated total department store sales and stocks. Not all stores report data for all of the departments shown; consequently, the sample for the individual departments is not so comprehensive as that for the total. SALES, STOCKS, AND OUTSTANDING ORDERS WEEKLY INDEX OF SALES AT 296 DEPARTMENT STORES * [Weeks ending on dates shown. 1935-39 average —100] Amount (in millions of dollars) Without seasonal adjustment Year or month ( S t a o l t e a s l Stocks sta O n u d t i - ng 1948 1949 1949 1950 mo fo n r th) m (e o nd n th of ) m ( o e r o n d n d e t r h o s f ) Sept. 1 4 1 . .. . . . . .. . 2 3 8 0 5 8 Sept. 1 3 0 . .. . . . . . . . 2 2 7 9 3 5 Mar. 1 5 2 . . . . . . . . . . 2 2 5 4 6 4Mar. 1 4 1 . . . . . . . . . . 2 2 5 4 3 4 18.. ...337 17... ..315 19 .261 18.. ...264 1939 average 128 344 25... ..319 24... ..292 26.... .277 25.. ...279 1940 average.. 136 353 108 Oct. 2.. .. .327Oct. 1... . .302 Apr. 2 .301Apr. 1... ..301 1941 average 156 419 194 9... ..336 8... ..297 9.... .320 8... . .320 1942 average 179 599 263 16... . .331 15... ..290 16 .314 15... ..254 1943 average 204 509 530 23... ..344 22... ..296 23.... .266 22... . .279 1944 average 227 535 560 30... ..319 29... ..298 30.... .286 29... ..285 1945 average 255 563 729 Nov. 6... . .320Nov. 5... ..315 May 7 .334May 6... ..301 1946 average 318 715 909 13... . .346 12... ..31S 14.... .285 13... ..308 1947 average .. ,,337 826 552 20... . .371 19... . .342 21 .280 20... . .275 1948 average 352 912 465 27... ..347 26... ..330 28.... .275 27... . .282 1949 average 333 859 350 Dec. 4... ..485 Dec. 3... ..449 June 4 .259June 3... ..261 11... ..564 10... ..542 11.... .288 10... ..302 1949—June 313 '807 283 18... ..576 17... ..584 18.... .285 17... ..302 July....... 234 756 390 25... ..473 24... ..541 25.... .247 24... ..250 August 283 799 410 31... ..197 July 2.... .238July 1... ..263 O Se c p to te b m er ber.. 3 3 3 4 4 3 8 9 6 5 1 2 4 5 4 0 4 1 1949 1950 1 9 6.... . . 2 2 0 1 1 3 1 8 5 . . . .. . . .. '2 2 1 6 8 5 November.. 397 990 350 Jan. 1... ..204 23.... .207 22... ..303 December. . 583 788 296 8... ..272 Jan. 7... ..205 30.... .209 29... ..295 1950—January 256 '788 390 15... ..244 14... ..233 Aug. 6.... .228Aug. 5... ..296 February... 247 853 393 22 . .230 21... . .230 13 .218 12 March 320 920 326 29... . .218 28.. .. .222 20 . ...252 19 April 319 926 270 Feb. 5... . 229Feb. 4... . .226 21 ....252 26 May 330 906 248 12... ..238 11... ..238 June *>318 *843 P373 19... ..227 18... ..231 26... ..232 25... ..221 P Preliminary. r Revised. 1 These figures are not estimates for all department stores in the r Revised. United States. NOTE.—For description of series and for back figures, see BULLETIN Back figures.—Division of Research and Statistics. for September 1944, pp. 874-875. AUGUST 1950 1061 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DEPARTMENT STORE STATISTICS—Continued SALES BY FEDERAL RESERVE DISTRICTS AND BY CITIES [Percentage change from corresponding period of preceding year] J 1 u 9 n 5 e 0 M 19 a 5 y 0 1 m 9 S 5 o ix 0 s. J 1 u 9 n 5 e 0 May m 1 S 9 o i 5 x s 0 . J 1 u 9 n 5 e 0 M 19 a 5 y 0 m 1 S 9 o i 5 x s 0 . J 1 u 9 n 5 e 0 M 19 a 5 y 0 m 1 S 9 o i 5 x s 0 . United States. P+4 +4 -1Cleveland-cont. Chicago p+6 +5 Kansas City— B N P B o o o e s r w s t t t o l o a n n H n d a A v r e e n a . . . . . . - - - 6 1 1 0 r - - - - 3 5 2 1 — - - 5 1 4 2 R W E P i i r c t h i t h e e s * m e b l u i o n r n g g h d i * ..... + + + + 1 1 4 7 4 0 + + + + 2 3 4 4 - - - 2 2 2 0 F C P In e o h d o r i i t r c a i a W a n g a J o a p 1 y o n li e s \ \ , . + + + - 1 6 4 1 0 + + + + 1 3 5 4 0 + - - 2 2 1 2 O O T c u k m o l l s a a n a h h t o . a ma City. + + + 7 5 8 + + + 9 6 5 + + + 4 5 1 D B o o w s n to to n wn 2 -3 -2 W Ba a l s ti h m in o g r t e on 1... + + 2 3 + -2 1 - - 1 4 T D e e r s r e M H o a in u e te s 1 . . .. + + 5 5 + + 8 3 + -6 1 D S a h l r l e a v s eport + + 5 8 + + 10 9 + + 6 3 Springfield.... +2 -3 -4 Hagerstown +1 +3 0 Detroit1 +10 +5 -1 Corpus Christi.. +12 +13 +7 Worcester 0 -5 -6 Asheville, N. C. -10 -5 Flint i +21 +12 +6 Dallas i +13 +11 +6 Providence.... -3 + 1 -4 Raleigh -4 +1 Grand Rapids. +16 0 +2 Fort Worth -3 +21 +7 N N A N N P E B B B e o l u r l e e i i w m b a i n u f w w d f g a g g i a g a n r a Y l h h Y a e r o y r k o a k p a o e r m o * r * k e F k r t p t a o C s l * n i l i e s . . t . . . . y . . . . + + + + + + + 1 5 3 4 2 1 3 + + + + - - - - - 4 4 2 1 1 7 3 6 7 0 + + - - - - - _ 3 2 7 5 4 4 1 1 0 A L N W G R H C C C t y o o h r l i u h i a e n c r l a n ' n u e f l n c r h s o s n m t l h t t ' m e l i a o v t b k n b o s i n u t o l i n g o - l a r n e . S t n g W , o d a , n S l . . e S V . . . m . . . C C . a . . . . . , . . + + + X + + + - 1 2 1 9 3 2 7 I 2 0 6 + + + + + + + + - - 2 2 7 2 4 4 6 5 3 8 0 + + + + - — - - 1 1 5 5 7 1 3 0 0 0 1 S L F L E L Q M G M t. o a o v i u r i a t n e u r a l i t L d t w n e l s n i e i s o i n c s S s a n v y u v o u m g i R B i i l n k s l l i o a l e e t e y h e c k 1 1 1 1 . . . . . . . . . . , , P P P + + + + 1 + + + + 1 1 P 4 2 6 5 5 4 8 5 0 + r+ + + + + — - 1 8 7 7 4 2 9 0 0 3 + + + - - - 1 4 3 2 1 4 0 0 S T F L S L H P O B a a r o h u o a a n o e n n s c k o k u s s e g e l n A A s o a r F n o t s n n n n B o i f r d x J g i t a n e o e x e n 1 l n a a l d e c i n c o s i d h s i * c 1 . . o . . * . . . . . . . . . P + + ( + + + - - 1 2 1 2 9 5 p ) 4 0 7 Q 3 + - + + + + + + + 1 1 6 5 6 2 1 1 3 7 5 3 + - + + 1 - - - - 2 1 3 2 4 1 2 4 1 Rochester 1.... +2 +4 -1 Birmingham 1.. +10 +4 —1 East St. Louis +7 +4 +3 Berkeley J + 1 0 -2 Schenectady.. -1 -3 -7 Mobile +7 +9 +2 St. Louis1. ..., 0 0 -2 Riverside and Syracuse * +7 -1 -1 Montgomery 1.. +9 +8 +1 St. Louis Area. + 1 0 -2 San Bernardino +9 +7 +4 P L T U P W R Y h h a r e t o i i e i n i a l l e r l a n k c d a k a d t e a d i 1 o n e s s e n - t g l l B p e p * r i h a h i r * i a r a . e . . . » * .. . . . + + + + + + + + 1 1 2 6 3 6 6 3 5 3 + + + + + t 1 7 3 7 1 i 8 + + + - - 4 4 2 4 1 0 0 O J A A T C M R M a o a o r u t c a i l l l m m g k a a a c u u n s o n m m e p o s d n t a a t i n b o a l 1 1 v u l i s lle *... + + + + + + + 1 1 1 3 1 4 3 2 2 7 0 0 4 + + + + + + + + 1 3 1 1 8 7 7 1 6 2 1 5 + + + + + + - - 1 1 1 3 2 5 6 5 6 0 K M S S D M M a S p t i u . e i n n r u n i l m P p s n n u n a e g a p e e t r h f s u h a a i i - o p e i l p s 1 l r o o d C l x l i . i i s x t . s . y * . . . , . , . . , . , P P + + + + + + + 4 2 5 8 7 4 6 + + + + + 2 4 4 1 5 + + - - 3 3 1 0 0 0 1 S S S S S V S B N t a a a a a o a o n n n n c l i a c l s t r e p k e J a D F a j a o t o r m i a o R s e a i n n e a g n o e d n l o s c n d a i t x s . o c 1 * . o . . . . 1 . . . . . P + + - - + - 9 8 8 4 7 2 0 + + + + - - 9 7 7 7 7 1 0 - + + + 1 - -3 5 1 3 4 1 Cleveland +6 +5 -1 Savannah +14 +8 +7 Denver +2 +3 -1 Nampa +3 0 -7 A S T Y C C C C p o l o i a o k e n r l n l u r i v e u c o n t n e d m i o n g g n l o n f a s b n i i * n t e u a i o d l t s d w i * i n * 1 . . * . . . . . + t + + + + 1 2 4 1 4 i 2 + + + + + + + 5 9 3 4 5 5 4 0 - - - — - 4 6 1 5 3 0 0 N J C K N M B B a h r a e a n c e i s w t a o s k r o h t t i x s o t n d v O o a v l i i n n a R i l r l l n l o e l l o e e o a u 1 g i n g . . a s e . J . . x l . . . . . . . + + + + + - - 1 1 1 3 2 8 2 9 1 0 + + + + + + + 1 1 9 3 4 6 4 8 4 0 + + + + - - - - 1 4 1 7 1 5 1 3 2 T J L W S P H K o t u i o a u . n p i e p n c t c l J b c e h i s o o n l h k a i l o s t n s i a e a n p C s h o i n ty . . . . . , , , , + + + + + 2 2 2 5 9 3 9 + + + + + - - - 1 2 4 3 4 7 5 8 2 s 3 + - - - - - - 1 1 3 4 6 3 2 P S S S T Y E B p a o e a v e a l o c a r l e k t l t o k t i r l i L t n m a a m e l g a n n e t a h k a t 1 e d 1 J a e 2 x m C x it . y . K . p p - + + 1 — + + + — 3 1 0 9 5 3 8 1 1 5 r + - + + + + + - 1 2 9 3 0 5 2 7 4 8 + - + + + - 1 - 1 3 6 3 2 1 5 9 0 +6 +1 P Preliminary. r Revised. 1 Indexes for these cities may be obtained on request from the Federal Reserve Bank in the district in which the city is located. 2 Data not available. 3 Five months 1950. COST OF LIVING Consumers' Price Index for Moderate Income Families in Large Cities [Index numbers of the Bureau of Labor Statistics, 1935-39 average =100] Fuel, elec- Year or month All items Food Apparel Rent r t e r f i r c i i g ty er , a a ti n o d n fur H ni o s u h s in e gs Miscellaneous 1929 122.5 132.5 115.3 141.4 112.5 111.7 104.6 1933 92.4 84.1 87.9 100.7 100.0 84.2 98.4 1940 100.2 96.6 101.7 104.6 99 7 100 5 101 1 1941 105.2 105.5 106.3 106.2 102.2 107.3 104.0 1942 116.5 123.9 124.2 108.5 105.4 122.2 110.9 1943 123.6 138.0 129.7 108.0 107.7 125.6 115 8 1944 125.5 136.1 138.8 108.2 109.8 136.4 121.3 1945 128.4 139.1 145.9 108.3 110.3 145.8 124.1 1946 . 139.3 159.6 160.2 108.6 112.4 159.2 128.8 1947 159.2 193.8 185.8 111.2 121.2 184 4 139.9 1948 171.2 210.2 198.0 117.4 133.9 195.8 149.9 1949 . 169.1 201.9 190.1 120.8 137.5 189.0 154.7 1949—May 169.2 202.4 191.3 120.4 135.4 189.5 154.5 June 169.6 204.3 190.3 120.6 135.6 187.3 154.2 July 168.5 201.7 188.5 120.7 135.6 186 8 154.3 August 168.8 202.6 187.4 120.8 135.8 184.8 154.8 September 169.6 204.2 187.2 121.2 137.0 185.6 155.2 October 168.5 200.6 186.8 121.5 138.4 185 2 155 2 November 168.6 200.8 186.3 122.0 139.1 185.4 154.9 December 167.5 197.3 185.8 122.2 139.7 185.4 155.5 1950—January 166.9 196.0 185.0 122.6 140.0 184.7 155.1 February 166.5 194.8 184.8 122.8 140.3 185.3 155.1 March 167.0 196.0 185.0 122.9 140.9 185 4 155 0 April 167.3 196.6 185.1 123.1 141.4 185.6 154.8 May . . 168.6 200.3 185.1 123.5 138 8 185 4 155 3 June . . . . .. 170.2 204.6 185.0 123.9 138.9 185.2 155.3 Back figures.—Bureau of Labor Statistics, Department of Labor. 1062 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

WHOLESALE PRICES, BY GROUPS OF COMMODITIES [Index numbers of the Bureau of Labor Statistics. 1926 ==100] Other commodities All Manu- Year, month, or week m c t o o ie m d s i - - F p u r a c o r t d m s - Foods Total l H e a a i n t d h d e e s r T p e r x o t d il - e lig F a h u n t e d in l g M m a e e n t t d a a l l s B i u n i g ld- c C a a h l l s l e i a m e n d i d - H n f o i u s u r h s - - e- c M el i l s a - - m R ri a a a t w l e s - t p u f r a r o c e d - d prod- ucts mate- prod- mate- prod- ing neous ucts ucts rials ucts rials ucts goods 1929 95.3 104.9 99.9 91.6 10S.1 90.4 83.0 100.5 95.4 94.0 94.3 82.6 97.5 94.5 1930 86 4 88 3 90.5 85.2 10f> 0 80.3 78.5 92.1 89 9 88.7 92.7 77.7 84.3 88 0 1931 73.0 64.8 74.6 75.0 86.1 66.3 67.5 84.5 79.2 79.3 84.9 69.8 65.6 77.0 1932 64 8 48 2 61.0 70.2 79 9 54.9 70.3 80 2 71 4 73 9 75.1 64.4 55 1 70 3 1933 65 9 51.4 60.5 71.2 8C 9 64.8 66.3 79.8 77.0 72.1 75.8 62.5 56.5 70.5 1934 74.9 65.3 70.5 78.4 86.6 72.9 73.3 86.9 86.2 75.3 81.5 69.7 68.6 78.2 1935 . . 80 0 78 8 83.7 77.9 89.6 70.9 73.5 86.4 85 3 79.0 80.6 68.3 77.1 82 2 1936 80 8 80.9 82.1 79.6 95 4 71.5 76.2 87.0 86.7 78.7 81 7 70.5 79.9 82.0 1937 86 3 86 4 85.5 85 3 104.6 76.3 77 6 95 7 95 2 82 6 89.7 77 8 84 8 87 2 1938 78 6 68 5 73.6 81.7 Q9 8 66.7 76.5 95.7 90.3 77.0 86.8 73.3 72.0 82.2 1939 . 77.1 65.3 70.4 81.3 9S 6 69.7 73.1 94.4 90.5 76.0 86.3 74.8 70.2 80.4 1940 78 6 67 7 71.3 83.0 10(1 8 73.8 71.7 95 8 94 8 77 0 77.3 71.9 81.6 1941 87 3 82.4 82.7 89.0 3 84.8 76.2 99.4 103.2 84.4 94.3 82.0 83.5 89.1 1942 98.8 105.9 99.6 95.5 117.7 96.9 78.5 103.8 110.2 95.5 102.4 89.7 100.6 98.6 1943 103 1 122 6 106.6 96.9 117 5 97.4 80.8 103.8 111.4 94.9 102.7 92.2 112.1 100.1 1944 104.0 123.3 104.9 98.5 116 7 98.4 83.0 103.8 115.5 95.2 104.3 93.6 113.2 100.8 1945 105 8 128 2 106 2 99.7 118 1 100.1 84.0 104 7 117.8 95 2 104 5 94.7 116 8 101.8 1946 . 121 1 148 9 130.7 109.5 137 116.3 90.1 115.5 132.6 101.4 111 6 100.3 134.7 116.1 1947 152.1 181.2 168.7 135.2 18? 4 141.7 108.7 145.0 179.7 127.3 131 1 115.5 165.6 146.0 1948 165 1 188 3 179.1 151.0 188 8 149.8 134.2 163.6 199.1 135.7 144.5 120.5 178.4 159.4 1949 155 0 165.5 161.4 147.3 180 4 140.4 131.7 170.2 193.4 118.6 145.3 112.3 163.9 151.2 1949—june 154 5 168 8 162.4 145.5 178.8 139.1 130.0 167.1 191.4 '116.7 14= 3 111.0 164.5 150.6 July 153.6 166.2 161.3 145.1 177 8 138.0 130.1 167.9 189.0 118.0 0 110.3 163.2 '149.8 August 152 9 162 3 160.6 145.0 178 9 138.1 '129.6 168.2 '188 3 '119 6 142.9 109.8 161.3 149.4 September . 153 5 163.1 162.0 145.3 181 1 139.0 129.9 168.2 189.4 117.6 14? 9 109.6 162.0 150.1 October 152.2 159.6 159.6 145.0 181 3 138.0 130.6 167.3 '189.3 115.9 14.^ 0 109.0 160.4 149.1 November 151 6 156 8 158.9 145.0 180 8 138.0 130.2 167.3 189 6 115.8 14^"4 109.7 160.4 148.2 December . . . 151.2 154.9 155.7 145.4 179 9 138.4 130.4 167.8 190.4 115.2 144I- ? 110.7 159.5 147.9 1950—January . 151 5 154.7 154.8 145.8 179 3 138.5 131.4 168.4 191.6 115.7 144I- 7 110.0 159.8 148.2 February 152.7 159.1 156.7 145.9 179 0 138.2 131.3 168.6 192.8 115.2 145 ? 110.0 162.4 149.1 IVlarch 152 7 159 4 155.5 146.1 179 6 137.3 131.5 168.5 194 2 116 3 1415 5 110.7 162.8 148.9 April 152 9 159.3 155.3 146.4 179 4 136.4 131.2 168.7 194.8 117.1 14s 8 112.6 162.5 149.4 May 155.9 164.7 159.9 147.6 181 0 136.1 132.1 '169.8 198.1 116.4 14<< 6 114.7 166.3 152.2 June 157.3 165.9 162.1 148.8 182.6 136.8 132.7 171.8 202.2 114.5 14/ .0 114.8 167.7 153.5 Week ending:1 1950—May 30... 156.8 167.5 161.5 147.7 135.6 132.9 171.3 199.6 116.0 June 6 157 4 166 4 163 2 148 2 135 7 132 8 172 9 199 8 114 9 June 13 156 7 164 5 161 0 148 3 135 8 133 0 173 2 200 7 114 1 June 20 157.1 166.2 162.5 148.3 135.9 133.1 173.0 201.1 113.9 June 27 157 1 165 0 162 7 148-7 136 7 133 1 173 1 201 4 114 3 July 4 159 0 171.3 165.2 149.0 13'1 4 133 4 173 0 202 1 114.9 July 11 161 9 176 3 171 9 149 9 138 7 133 2 173 1 203 8 115 7 July 18 163 3 176.9 175.4 150.6 139.6 133 5 173 3 204 1 117.7 July 25 163.7 177.0 173.8 151.7 140.7 133.8 173.5 207.3 118.6 1949 1950 1949 1950 Subgroups Subgroups June Mar. Apr. May June June MsIT. Apr May June Farm Products: Metals and Metal Products: Grains 154.9 165.4 169.6 172.3 169.3 Agricultural fnach. & ennin... 144.1 143.1 143 4 143.5 143.6 Livestock and poult 193.3 180.3 178.0 194.6 197.5 Farm machineryj 146.6 145.6 145 8 145.8 145.9 Other farm product5 156 7 144 2 144 2 14.3 7 145 0 Iron and steel '164 6 169 0 168 Q 168 6 169 2 Motor vehicles 175.8 175.1 175 1 175.1 175.1 Dairy products 145.5 144.8 141.1 138.0 135.9 Nonferrous metals 128.8 127.2 128 9 136.3 148.4 Cereal products . 145.6 145.6 145.9 146.0 145.6 Plumbing and hpatin^. 154.7 151.9 154 7 156.4 156.3 Fruits and vegetable*s 157.5 134.9 137.6 139.2 140.5 Building Mtiterials: !Meats 215.5 200.0 200.6 217.1 223.7 Brick and tile 160.8 163.3 163 4 163.9 164.3 Other foods. .. 127 8 129.8 129.3 130.9 133 1 Cement 133.7 134.9 134 0 134.9 134.9 Hides and Leather Products: Lumbei 280.7 295.9 299 4 310.8 322.7 Shoes . 184.1 184.3 184.3 185.0 184.8 Paint and naint materials... . 153.8 138.2 136.7 136.8 137.7 Hides and skins 186.0 190.4 187.2 194.4 202.1 Plumbing and heating 154.7 151.9 154 7 156.4 156.3 Leather . ... 177.1 177.9 179.1 179.3 180 6 Structural steel 178.8 191 6 191 6 191.6 191.6 Other leather products 144.4 143.1 143.1 143.1 143.1 Other building materials 168.5 172 2 177 0 172.7 175.1 Textile Products: Chemicals and Allied Products Clothing . 145.6 143.5 144.2 143.8 143 8 Chemicals 116.7 115.4 116.4 116.5 117.3 Cotton goods 169.3 176.5 172.8 172.0 173.8 Drugs and Pharmaceuticals. . 124.3 121.9 122.0 122.3 122.7 Hosiery and underwear 99.5 98 0 97.7 97.7 97 7 Fertilizer materials 117.5 117.3 117.4 116.8 108.4 Silk... 49.2 49.1 49.1 49 3 49.3 Mixed fertilizers 108.3 10' 5 103.S 103.5 103.5 Rayon 39.6 39.9 39.9 39.9 39.9 Oils anci fats 116.9 12 =.6 127.5 122.2 111.9 Woolen and worsted goods... 159.7 146.3 146.1 146.2 148.3 Housefurnisking Goois: Other textile products 177 7 166 9 165 8 164 6 164 5 Furnishings 151 1 152 9 152 6 154.1 154.4 Fuel and Lighting Materials: Furniture 139.3 138.6 138.8 138.9 139.3 Anthracite 134.2 141.9 142.6 139.2 140.1 Miscfllant>.ot%s: Bituminous coal.... 188.6 198.5 193.4 192.6 192.1 Auto tires and tubes 62.1 64.3 65.0 65.8 67.0 Coke 222 4 224 7 225 6 225 fi 225 6 Cattle feed . . 199.3 10" 7 215.6 235.5 213.2 Electricity 68.9 67.9 67.8 Paper and pulp 159.6 15 =S 155.4 155.4 155.4 Gas 90.1 88.3 86.8 87.2 Rubber, crude.. 34.5 41.3 48.7 58.4 63.4 Petroleum products 110.4 108.6 109.5 112.6 •Hi:* Other miscellam*ous 121.9 120.4 120.3 120.5 121.0 ' Revised. 1 Weekly indexes are based on an abbreviated sample not comparable with monthly data. Back figures.—Bureau of Labor Statistics, Department of Labor. AUGUST 1950 1063 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

GROSS NATIONAL PRODUCT, NATIONAL INCOME, AND PERSONAL INCOME [Estimates of the Department of Commerce. In billions of dollars] RELATION OF GROSS NATIONAL PRODUCT, NATIONAL INCOME, PERSONAL INCOME, AND SAVING Seasonally adjusted annual rates Annual totals by quarters 1949 1950 1933 1939 1941 1946 1947 1948 1949 Gross national product 103.8 55.8 91.3 126.4 211.1 233.3 259.1 255.6 255.2 254.4 253.8 262.5 269.9 Less: Capital consumption allowances 7.2 8.1 9.3 12.2 14.8 17.4 18.8 18.7 18.9 19.3 19.7 20.4 Indirect business tax and related liabilities. 7.0 7.1 9.4 11.3 17.3 18.7 20.4 21.3 21.2 21.7 21.5 21.7 22.7 Business transfer payments .6 .7 .5 .5 .6 .7 .7 .7 .7 .7 .7 .7' .7 Statistical discrepancy - .1 1.2 1.4 1.6 1.7 .3 -2.9 -1.9 -2.9 -3.6 -1.9 3.4 n.a. Plus: Subsidies less current surplus of government enterprises -.1 .5 .1 .9 - .1 .0 .1 .3 .0 .0 .5 Equals: National income 87.4 72.5 103.8 180.3 198.7 223.5 216.8 217.8 216.7 214.2 217.2 n.a. Less: Corporate profits and inventory valuation adjustment 10.3 -2.0 5.8 14.6 18.3 24.7 31.8 29.9 30.4 31.8 28.4 28.4 n.a. Contributions for social insurance .2 .3 2.1 2.8 6.0 5.7 5.2 5.7 5.6 5.6 5.7 6.7 6.9 Excess of wage accruals over disbursements .0 .0 .0 .0 .0 .0 .0 .0 - .3 .0 .0 .0 .0 Plus: Government transfer payments .9 1.5 2.5 2.6 10.9 11.1 10.6 11.6 11.7 11.9 11.8 20.9 14.7 Net interest paid by government 1.0 1.2 1.2 1.3 4.4 4.4 4.5 4.7 4.6 4.7 4.7 4.7 4.7 Dividends 5.8 2.1 3.8 4.5 5.8 6.6 7.5 7.8 7.7 7.4 8.2 8.1 8.1 Business transfer payments .6 .7 .5 .5 .6 .7 .7 .7 .7 .7 .7 .7 .7 Equals: Personal income 85.1 46.6 72.6 95.3 177.7 191.0 209.5 206.1 206.8 203.8 205.4 216.4 214.7 Less: Personal tax and related payments 2.6 1.5 2.4 3.3 18.8 21.5 21.2 18.7 18.7 18.7 18.7 18.7 19.2 Federal 1.3 .5 1.2 2.0 17.2 19.6 19.0 16.2 16.2 16.2 16.1 16.1 16.6 State and local 1.4 1.0 1.2 1.3 1.6 1.9 2.2 2.5 2.5 2.5 2.5 2.6 2.6 Equals: Disposable personal income 82.5 45.2 70.2 92.0 158.9 169.5 188.4 187.4 188.2 185.1 186.8 197.7 195.5 Less: Personal consumption expenditures 78.8 46.3 67.5 82.3 146.9 165.6 177.4 178.8 178.4 179.0 180.6 182.4 184.5 Equals: Personal saving 3.7 - 1 .2 2.7 9.8 12.0 3.9 10.9 8.6 9.8 6.2 6.2 15.3 11.0 NATIONAL INCOME, BY DISTRIBUTIVE SHARES Seasonally adjusted annual rates Annual totals by quarters 1949 1950 1929 1933 1939 1941 1946 1947 1948 1949 National income 87.4 39.6 72.5 103.8 180.3 198.7 223.5 216.8 217.8 216.7 214.2 217.2 n.a. Compensation of employees. . . . 50.8 29.3 47.8 64.3 117.1 128.0 140.2 140.6 140.5 140.0 140.2 142.3 147.6 Wages and salaries 2 50.2 28.8 45.7 61.7 111.2 122.1 134.4 134.2 134.2 133.6 133.6 135.2 140.2 Private 45.2 23.7 37.5 51.5 90.6 104.8 115.7 113.7 114.0 113.0 112.7 114.3 119.2 Military .3 .3 .4 1.9 8.0 4.1 4.0 4.3 4.2 4.3 4.6 4.5 4.5 Government civilian 4.6 4.9 7.8 8.3 12.7 13.2 14.7 16.1 16.1 16.3 16.4 16.4 16.5 Supplements to wages and salaries .6 .5 2.1 2.6 5.9 5.9 5.8 6.4 6.3 6.4 6.6 7.1 7.4 Proprietors' and rental income 3 19.7 7.2 14.7 20.8 42.0 42.4 47.3 41.7 42.2 40.1 40.7 41.5 41.3 Business and professional 8.3 2.9 6.8 9.6 20.6 19.8 22.1 21.0 21.1 20.7 20.6 21.4 22.3 Farm. 5.7 2.3 4.5 6.9 14.8 15.6 17.7 13.4 13.7 12.2 12.8 12.8 11.8 Rental income of persons 5.8 2.0 3.5 4.3 6.6 7.1 7.5 7.3 7.4 7.2 7.3 7.3 7.2 Corporate profits and inventory valua tion adjustment 10.3 -2.0 5.8 14.6 18.3 24.7 31.8 29.8 30.4 31.8 28.4 28.4 n.a. Corporate profits before tax 9.8 .2 6.5 17.2 23.5 30.5 33.9 27.6 26.4 28.2 27.6 29.2 n.a. Corporate profits tax liability 1.4 .5 1.5 7.8 9.6 11.9 13.0 10.6 10.0 10.8 10.6 11.4 n.a. Corporate profits after tax 8.4 — .4 5.0 9.4 18.5 20.9 17.0 16.4 17.3 16.9 17.8 n.a. Inventory valuation adjustment .5 -2.1 - .7 -2.6 -5.8 -2.0 2.2 3.9 3.7 .8 — .7 -2.3 Net interest 6.5 5.0 4.2 4.1 2.9 3.5 4.1 4.7 4.7 4.8 4.8 5.0 5.0 n.a. Not available. 1 Less than 50 million dollars. 2 Includes employee contributions to social insurance funds. 3 Includes noncorporate inventory valuation adjustment. NOTE.—Details may not add to totals because of rounding. Source.—Figures in this table are the revised series. For an explanation of the revisions and a detailed breakdown of the series for the period 1929-38, see National Income Supplement to the Survey of Current Business, July 1947, Department of Commerce. For the detailed breakdown for the period 1939-49, see Survey of Current Business, July 1950. For a discussion of the revisions, together with annual data for the period 1929-38, see also pp. 1105-1114 of the BULLETIN for September 1947; data subsequent to 1938 shown in that issue of the BULLETIN have since been revised. 1064 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

GROSS NATIONAL PRODUCT, NATIONAL INCOME, AND PERSONAL INCOME—Continued [Estimates of the Department of Commerce. In billions of dollars] GROSS NATIONAL PRODUCT OR EXPENDITURE Annua1 totals Seasonally adjusted annual rates by quarters 1949 1950 1929 1933 1939 1941 1946 1947 1948 1949 2 3 4 1 2 Gross national product 103.8 55.8 91.3 126.4 211.1 233.3 259.1 255.6 255.2 254.4 253.8 262.5 269.9 Personal consumption expenditures..... 78.8 46.3 67.5 82.3 146.9 165.6 177.4 178.8 178.4 179.0 180.6 182.4 184.5 Durable goods . . .. 9.4 3.5 6.7 9.8 16.6 21.4 22.9 23 8 23 0 24 7 25 3 26 9 26 7 Nondurable goods 37.7 22.3 35:3 44.0 85.8 95.1 100.9 98.5 99.2 97 6 97 9 97 5 99 0 Services 31.7 20.6 25.5 28.5 44.5 49.1 53.7 56.4 56.2 56.6 57.4 58.0 58.8 Gross private domestic investment...... 15.8 1.3 9.9 18.3 28.7 30.2 43.1 33.0 31.3 32.1 31.2 40.5 45.9 New constructionl 7.8 1.1 4.9 6.8 10.3 13.9 17.7 17.3 16.8 16.9 18.2 19.9 20.9 Producers' durable eouipment 6.4 1.8 4.6 7.7 12.3 17.1 19.9 19.5 19.8 19.4 18.7 19.3 21.6 Change in business inventories 1.6 -1.6 .4 3.9 6.1 -.8 5.5 -3.7 -5.3. -4.2 -5.7 1.3 3.4 Net foreign investment .8 .2 .9 1.1 4.6 8.9 1.9 .4 1 3 .1 - 7 -1 9 —2 0 Government purchases of goods and services 8.5 8.0 13.1 24.7 30.9 28.6 36.6 43.3 44 3 43 2 42 8 41 4 41 4 Federal 1.3 2.0 5.2 16.9 20.9 15.8 21.0 25.3 26.6 25.1 24.3 '22.5 22,6 War ) 1.3 2.0 1.3 13.8 21.2 }l7.1 21.5 25.7 26.8 25.8 24.6 22.8 22.8 Nonwar 3.9 3.2 2.5 Less: Government sales 2 ' ft (3) ft (3) 2.7 1.3 .5 .4 .2 .7 .3 .3 .2 State and local 5.9 7.8 10.0 12.8 15.6 18.0 17.7 18.2 18.5 18.9 18.8 PERSONAL INCOME [Seasonally adjusted monthly totals at annual rates] Wages and salaries Divi- Wage and salary disbursement Less em- Pro- dends Per- ployee Other prietors' and Trans- Non- Year or month sonal contri- labor and per- fer agriculincome re T c o e t i a p l ts4 b m T u d o e r is n t s a - e t l s - d p m in C u ro o g s o d t d m r u i i i n t e c - y - s - D i u n t i r s t d i i t e u v r s i s e b - - S in e tr r d i v u e i s s c - e m G er o e n n v - t - b s i u a n o f t n s c o i u c o i r a e r n l - s income5 in re co n m ta e l 6 i i n n s t c o e o n r m a e l s e t m p e a n y t - s7 in t c u o r m al e8 1929 . . 85.1 50.0 50.2 21.5 15.5 8.2 5.0 .1 .5 19.7 13.3 1.5 76.8 1933 46.6 28.7 28.8 9.8 8.8 5.1 5.2 .2 .4 7.2 8.2 2.1 43.0 1937 74 0 45 4 45.9 18.4 13.1 6.9 7.5 6 5 15 4 10 3 2 4 66 5 1938 . . .. 68.3 42.3 42.8 15.3 12.6 6.7 8.2 .6 .5 14 0 8 7 2 8 62 1 1939. 72.6 45.1 45.7 17.4 13.3 6.9 8.2 .6 .5 14.7 9.2 3.0 66.3 1940 78.3 48.9 49.6 19.7 14.2 7.3 8.5 .7 6 16 3 9 4 3 1 71 5 1941 95.3 60.9 61.7 27.5 16.3 7.8 10.2 .8 .6 20.8 9.9 3 1 86 1 1942 122.7 80.7 81.9 39.1 18.0 8.6 16.1 1 2 7 28 4 9 7 3 2 109 4 1943 150.3 103.6 105.4 49.0 20.1 9.5 26.8 1.8 .9 32 8 10.0 3 0 135.2 1944 165.9 114.9 117.1 50.4 22.7 10.5 33.5 2.2 1.3 35.5 10.6 3.6 150.5 1945 . . 171.9 115.3 117.7 45.9 24.7 11.5 35.6 2.3 1 5 37.5 11 4 6 2 155 7 1946 177.7 109.2 111.3 46.1 30.9 13.7 20.6 2.0 1.9 42.0 13.2 11.4 158 8 1947 191 0 119.9 122.0 54.3 35.1 15.3 17.2 2 1 2 4 42 4 14 5 11 8 170 8 1948 209.5 132.2 134.3 60.2 38.8 16.6 18.7 2.2 2.8 47.3 16.1 11.2 187.0 1949 206.1 132.0 134.2 57.0 39.4 17.4 20.4 2.2 2.9 41 7 17 2 12 3 188 2 1949—May 207.6 132.7 134.9 57.1 40.1 17.6 20.1 2.2 2.9 42.6 17.1 12.3 188.7 June 205.9 131.6 133.9 56.4 39.6 17.5 20.4 2.3 2.9 42.2 16.8 12.4 187.4 July. 203.5 131.4 133.5 56.0 39.4 17.4 20.7 2.1 2.9 40 2 16 6 12 4 186 8 August 204.5 131.3 133.5 56.3 39.4 17.3 20.5 2.2 2.9 40.7 16.8 12.6 187.3 September. . . . 203.4 131.6 133.8 56.4 39.4 17 A 20.6 2.2 3.0 39.2 17.0 12.6 187.8 October 202.4 130.3 132.5 54.8 39.0 17.8 20.9 2.2 3.0 39.8 17.2 12.1 186.0 November. . . . 205.7 131.3 133.4 55.5 39.0 17.8 21.1 2.1 3.1 41.7 17.2 12 A 187.6 December 208.4 132.9 135.1 57.0 39.3 17.8 21.0 2.2 3.1 40.6 18.9 12.9 191.1 1950—January 214.6 132.2 135.0 56.7 39.5 17.9 20.9 2.8 3.0 43.5 17.5 18.4 195.2 February 215.4 131.5 134.2 55.8 39.3 18.1 21.0 2.7 3.0 41.0 17.7 22.2 199.0 March 219.3 133.6 136.4 57.7 39.6 18.1 21.0 2.8 3.3 40.2 18.0 24.2 203.7 April 213 8 135.3 138.1 59.1 39.7 18.2 21.1 2 8 3.3 39 8 18 2 17 2 198 7 May 214.5 137.7 140.5 60.9 40.1 18.5 21.0 2.8 3.4 41.5 17.8 14.1 198.4 r Revised. 1 Includes construction expenditures for crude petroleum and natural gas drilling. 2 Consists of sales abroad and domestic sales of surplus consumption goods and materials. 3 Less than 50 million dollars. 4 Total wage and salary receipts, as included in "Personal income," is equal to total disbursements less employee contributions to social insurance. Such contributions are not available by industries. 6 Includes compensation for injuries, employer contributions to private pension and welfare funds, and other payments. 6 Includes business and professional income, farm income, and rental income of unincorporated enterprise; also a noncorporate inventory valuation adjustment. 7 Includes government social insurance benefits, direct relief, mustering out pay, veterans' readjustment allowances and other payments, as well as consumer bad debts, and other business transfers. 8 Includes personal income exclusive of net income of unincorporated farm enterprise, farm wages, agricultural net rents, agricultural net interest, and net dividends paid by agricultural corporations. NOTE.—Details may not add to totals because of rounding. Source.—Same as preceding page. 1065 AUGUST 1950 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 Noninstalment credit E o n r d m of o n y t e h ar co c T n r s o e u t d a m i l t er i c T m n r o s e e t t d n a a i l t l t - Total A Sa u l t e o m cr o e b d i i l t e Other Loans * no c T n m r i o e e n t d n s a i t t l t al- p S l a o i y n a m g n l s e e 2 n - t a C cc h o a u rg n e ts S c e r r e v d i i c t e 1929 . . . 7,628 3,158 2.515 1,318 1,197 643 4,470 2,125 1,749 596 1933 3,912 1,588 1,122 459 663 466 2,324 776 1,081 467 1939 7,969 4,424 2,792 1,267 1,525 1,632 3,545 1,468 1,544 533 1940 9,115 5,417 3,450 1,729 1,721 1,967 3,698 1,488 1,650 560 1941 9,862 5,887 3,744 1,942 1,802 2,143 3,975 1,601 1,764 610 1942 6,578 3,048 1,617 482 1,135 1,431 3,530 1,369 1,513 648 1943 5,378 2,001 882 175 707 1,119 3,377 1,192 1,498 687 1944 . 5,803 2,061 891 200 691 1,170 3,742 1,255 1,758 729 1945 6,637 2,364 942 227 715 1,422 4,273 1,520 1,981 772 1946 10,191 4,000 1,648 544 1,104 2,352 6,191 2,263 3,054 874 1947 13,673 6,434 3,086 1,151 1,935 3,348 7,239 2,707 3,612 920 1948 16,319 8,600 4,528 1,961 2,567 4,072 7,719 2,902 3,854 963 1949 18,779 10,890 6,240 3,144 3,096 4,650 7,889 2,988 3,909 992 1949—May 15,843 8,888 4,718 2,386 2,332 4,170 6,955 2,739 3,235 981 June 16,124 9,123 4,870 2,499 2,371 4,253 7,001 2,752 3,274 975 July . 16,198 9,335 5,010 2,610 2,400 4,325 6,863 2,768 3,123 972 August 16,453 9,622 5,223 2,761 2,462 4,399 6,831 2,799 3,064 968 September 16,803 9,899 5,438 2,876 2,562 4,461 6,904 2 ,808 3,123 973 October. 17,223 10,166 5,661 2,986 2,675 4,505 7,057 2,866 3,197 994 November 17,815 10,441 5,880 3,085 2,795 4,561 7,374 2,927 3,454 993 December 18,779 10,890 6,240 3,144 3,096 4,650 7,889 2,988 3,909 992 1950—January 18,344 10,836 6,174 3,179 2,995 4,662 7,508 3,003 3,506 999 February 18,126 10,884 6,213 3,256 2,957 4,671 7,242 3,001 3,233 1,008 March. 18,302 11,077 6,334 3,355 2,979 4,743 7,225 3,009 3,211 1,005 April 18,620 11,322 6,511 3,470 3,041 4,811 7,298 3,048 3,241 1,009 Mayp 19,077 11,668 6,733 3,600 3,133 4,935 7,409 3,101 3,290 1,018 June? 19,627 12,063 6,950 3,761 3,189 5,113 7,564 3,140 3,399 1,025 ^Preliminary. 1 Includes repair and modernization loans insured by Federal Housing Administration. 2 Noninstalment consumer loans (single-payment loans of commercial banks and pawnbrokers). NOTE.—Back figures by months beginning January 1929 may be obtained from Division of Research and Statistics. CONSUMER INSTALMENT LOANS [Estimates. In millions of dollars] Amounts outstanding Loans made by principal lending institutions (end of period) (during period) Insured Year or month Total m b C a e n o r k c m s ia - x l p S c l a o m o n a m i a n e l - s l b I a n tr n d i k u al s s 2 - p I a c n t l n o o r d i i a m u a e n l s s - - 2 u C n r i e o d n i s t l l M a e n n is e d c o e e u r l s s - m i l r z o e a o a a p n d t n i a d e o s i r r n 3 n- m b C a e n o r k c m i s a - * l p S c l a m o o n a m i a n e l - s l b I a n tr n d i k a u s l s - 2 p I a c n l t n o o r d i i a m u a e n l s s - - 2 u C n r i e o d n i s t 1929 643 43 263 210 23 95 463 413 38 1933 466 29 246 121 20 50 322 20^ 32 1939 1,632 523 448 131 99 135 96 200 680 827 261 194 237 1940 1,967 692 498 132 104 174 99 268 1,017 912 255 198 297 1941 2,143 784 531 134 107 200 102 285 1,198 975 255 203 344 1942 1,431 426 417 89 72 130 91 206 792 784 182 146 236 1943 1,119 316 364 67 59 104 86 123 639 800 151 128 201 1944 1,170 357 384 68 60 100 88 113 749 869 155 139 198 1945 1,422 477 439 76 70 103 93 164 942 956 166 151 199 1946 2,352 956 597 117 98 153 109 322 1,793 1,231 231 210 286 1947 3,348 1,435 701 166 134 225 119 568 2,636 1,432 310 282 428 1948 .. 4,072 1,709 817 204 160 312 131 739 3,069 1,534 375 318 577 1949 4,650 1,951 929 250 175 402 142 801 3,282 1,737 418 334 712 1949—May 4,170 1,788 818 213 165 333 131 722 288 135 35 28 60 June 4,253 1,836 827 219 167 346 132 726 303 140 38 28 68 July 4,325 1,866 843 225 169 357 133 732 282 155 35 28 59 August 4,399 1,897 851 230 171 369 134 747 294 143 37 29 66 September. . 4,461 1,922 855 235 172 379 135 763 278 128 34 27 65 October 4,505 1,936 858 239 172 385 135 780 272 134 34 26 59 November... 4,561 1,944 875 244 173 394 137 794 269 161 36 28 64 December... 4,650 1,951 929 250 175 402 142 801 280 232 41 31 69 1950—January.... 4,662 1,957 931 251 175 404 142 802 269 131 37 27 59 February 4,671 1,973 928 254 174 408 142 792 268 126 34 25 61 March 4,743 2,026 936 258 176 421 143 783 336 163 43 31 78 April 4,811 2,066 945 262 178 431 144 785 307 154 37 28 70 May? 4,935 2,134 959 267 182 450 145 798 348 168 43 32 83 JuneP. .. 5,113 2,233 978 275 188 474 147 818 379 175 46 34 93 Preliminary. 1 Figures include only personal instalment cash loans and retail automobile direct loans shown on the following page, and a small amount of other retail direct loans not shown separately. Other retail direct loans outstanding at the end of June amounted to 97 million dollars, and other loans made during June were 13 million. 2 Figures include only personal instalment cash loans, retail automobile direct loans, and other retail direct loans. Direct retail instalment loans are obtained by deducting an estimate of paper purchased from total retail instalment paper. 8 Includes only loans insured by Federal Housing Administration. 1066 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CONSUMER CREDIT STATISTICS—Continued CONSUMER INSTALMENT SALE CREDIT, EXCLUDING CONSUMER INSTALMENT CREDITS OF COMMERCIAL AUTOMOBILE CREDIT BANKS, BY TYPE OF CREDIT [Estimated amounts outstanding. In millions of dollars] [Estimates. In millions of dollars] Depart- Automobile Other Repair Pery E m e n a o d r n o t o h f r in e m T g x o o c a l b t u a u i d l l t e , o - - s o m m t a r o a n e d r i n d e e l t r - s 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 - - J s e t w o e re lr s y s o r t e A t o h t r a l e e l i r l s Year or month Total c P ha u s r r e - e d ta D i l l o i a re n c s t c d r h p a e ir a u t n e a s d r c i e - l t d , l e o m r t a a n i o n o n i d z d n s a - 12 - s i l n m o c o s n a a e t s a a n n h l l s t houses Outstanding at end of period: 1929 1,197 160 583 265 56 133 1947 2,701 346 536 523 500 796 1933 663 119 299 119 29 97 1 1 9 9 4 4 9 8 4 3 , , 4 5 1 6 6 3 5 85 7 4 0 9 7 1 3 5 6 9 7 2 5 2 1 6 7 3 8 6 1 8 94 7 4 0 1939 1,525 377 536 273 93 246 1949—May 3,740 664 817 736 650 873 1940 1,721 439 599 302 110 271 June 3,852 688 843 750 676 895 1941 1,802 466 619 313 120 284 July. 3,933 718 869 761 684 901 1942 1,135 252 440 188 76 179 August 4,044 754 890 778 711 911 1943 ... 707 172 289 78 57 111 September 4,140 780 905 803 730 922 1944...... 691 183 293 50 56 109 October 4,247 811 915 839 755 927 1945 715 198 296 51 57 113 November 4,326 835 922 868 772 929 1946 1,104 337 386 118 89 174 December.... 4,416 854 915 922 781 944 1 1 1 9 9 9 4 4 4 7 9 8 .. 3 2 1 , , , 9 0 5 3 9 6 5 7 6 1,0 6 8 1 5 7 0 0 4 9 5 7 3 8 5 5 7 0 3 2 5 8 4 00 7 9 1 1 16 5 4 3 2 4 3 4 4 0 8 0 8 5 4 1950— F M J e a a b n r r u c u h a a r r y y .. 4 4 4 , , , 5 4 4 9 6 9 5 5 4 9 8 8 2 8 6 2 8 6 9 9 9 2 6 3 2 4 5 9 9 96 4 5 6 1 3 7 7 7 7 7 8 9 4 3 9 9 9 4 6 4 5 9 7 1949 A M p a r y il ? 4 4 , , 6 8 8 6 8 1 9 9 5 9 3 2 1,0 9 3 9 5 2 1,0 9 2 8 7 3 8 7 0 8 4 0 1, 9 0 8 0 0 3 May 2,332 771 704 367 123 367 JuneP 5,083 1,048 1,096 1,065 834 1,040 S J J O A u u e u c n l p y g t e t o u e b s m t e b r e .. r . . 2 2 2 2 2 , , , , , 5 3 4 4 6 6 7 6 0 7 1 2 2 0 5 8 8 7 7 7 1 5 7 6 8 8 5 4 6 1 8 7 7 7 7 2 1 8 5 3 2 8 4 5 0 3 4 4 4 4 8 3 0 1 5 2 5 5 7 4 1 1 1 1 1 2 2 2 2 2 4 1 1 1 3 3 3 3 4 4 0 7 7 8 2 4 3 8 8 1 Vo i 1 l n u 9 g m 4 9 m e — o J e n M u x t n h t a e y e : nded dur- 5 59 6 2 8 1 1 1 0 2 9 1 13 3 5 6 1 1 2 2 4 4 5 6 4 7 1 1 4 5 2 7 November. 2,795 906 858 464 127 440 July 541 112 129 -109 50 141 December. 3,096 1,010 935 500 163 488 August 598 127 134 114 75 148 September 568 117 123 121 62 145 1950 O N c o t v ob e e m r ber.... 5 57 9 6 3 1 1 1 2 8 5 1 11 2 5 3 1 13 3 1 6 6 7 7 0 1 1 3 4 9 5 January... 2,995 975 902 491 627 December. . .. 593 113 105 154 57 164 A J F M M u e p n a a b r y e i r r l P p c u h ar . y .. . . . 3 3 3 2 2 , , , , , 1 0 1 9 9 8 4 3 5 7 9 1 3 7 9 1 1, , 0 0 9 9 9 2 1 7 6 5 8 1 9 0 8 9 8 8 9 9 1 9 4 3 9 3 9 7 5 1 5 4 5 5 5 0 9 1 3 5 2 2 8 7 2 6 6 6 6 6 1 1 3 5 6 < 1 5 3 1 3 2 1950— F A M M J e a p a a n b r r y i u r c l ? u a h a ry ry 6 5 5 6 7 4 0 5 4 2 2 7 4 6 1 1 1 1 1 1 1 4 3 4 1 7 2 0 8 1 1 1 1 1 1 2 5 4 1 6 4 1 1 6 4 1 1 1 1 1 1 3 2 3 6 8 7 9 9 3 4 4 4 5 7 9 7 2 2 4 1 1 1 1 1 5 4 3 7 7 5 3 4 2 2 June*5 767 165 184 154 82 182 CONSUMER INSTALMENT CREDITS OF INDUSTRIAL BANKS, BY TYPE OF CREDIT CONSUMER INSTALMENT CREDITS OF INDUSTRIAL [Estimates. In millions of dollars] LOAN COMPANIES, BY TYPE OF CREDIT Retail instal- Repair Personal [Estimates. In millions of dollars] ment paper 2 and instal- Year or month Total modern- ment Retail instal- Repair Personal Auto- ization cash ment paper 2 and instalmobile Other loans i loans Year or month Total modern- ment Auto- ization cash mobile Other loans 1 s loans Outstanding at end of period: Outstanding at end 1947 233.5 50.0 30.2 43.3 110.0 of period: 1948 286.2 66.6 43.4 51.7 124.5 1949 343.2 93.6 63.1 55.4 131.1 1947 148.2 27.1 17.1 4.2 99.8 1948 177.1 38.3 23.7 5.0 110.1 1949—May 294.7 73.3 45.8 50.0 125.6 1949 194.7 43.5 31.4 6.5 113.3 O D S N J J A u u e e c o u l n p c y t v g e t o e e e u m b m m s e b t b b r . e . e e . r . r r . . . . 3 3 3 3 3 3 3 3 2 4 2 0 0 1 6 3 3 9 3 9 7 . . . . . . . 2 3 7 6 4 4 4 8 9 9 8 8 7 7 3 1 5 8 2 6 8 . . . . . . . 6 7 7 3 9 1 8 4 5 5 6 5 5 5 9 8 4 6 3 0 2 . . . . . . . 2 7 6 6 1 3 3 5 5 5 5 5 5 5 5 3 1 5 5 2 1 . . . . . . . 5 2 9 4 0 9 4 1 1 1 1 1 1 1 2 2 2 3 2 2 2 9 9 9 1 8 7 9 . . . . . . . 9 9 9 3 4 1 3 1949— J O J A N S M u u e u o c l a p n y g v t y t o e u e e b m s . m t . e . b b r . e . e . . r r . . . , 1 1 1 1 1 1 1 9 9 9 8 8 8 9 1 2 0 5 3 7 0 . . . . . . . 2 5 9 7 0 9 1 4 4 4 4 4 4 4 1 4 0 2 3 1 4 . . . . . . . 2 2 0 3 3 6 1 3 2 2 2 2 3 3 0 6 5 8 0 0 9 . . . . . . . 2 7 9 5 0 5 6 5 6 5 5 5 5 6 . . . . . . . 3 0 7 3 8 3 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 1 2 2 0 2 1 . . . . . . . 2 6 5 5 8 4 7 December. 194.7 43.5 31.4 6.5 113.3 1950—January... 344.6 96.1 63.9 54.7 129.9 February. 347.4 98.6 65.2 54.2 129.4 1950—January... 194.8 44.3 31.1 6.6 112.8 March. 350.5 100.4 66.9 53.0 130.2 February . 193.7 44.6 30.8 6.6 111.7 April , 355.0 102.6 68.9 52.8 130.7 March.... 196.2 46.1 31.0 6.5 112.6 May? 361.8 105.6 70.7 53.5 132.0 April 198.7 47.5 31.6 6.4 113.2 J 371.0 111.9 71.9 54.1 133.1 May?. . . . 202.8 49.5 32.7 6.7 113.9 June? 209.1 52.3 34.4 6.9 115.5 Volume extended Volume extended during month: during month: 1949— D N J S O J A M u u e e o u c l n a p c v y g t y e t o e e u e m b m s m t e b b b r e e . e r . r r . . , . , , 4 4 4 4 4 4 4 4 7 5 1 5 3 7 7 3 . . . . . . . . 0 6 8 9 5 7 0 7 1 1 1 1 1 1 1 1 3 2 3 1 1 2 4 1 . . . . . . . . 7 7 9 5 3 9 3 1 1 8 8 8 8 7 7 7 0 . . . . . . . . 8 2 2 5 8 5 8 3 3 3 4 4 3 4 4 4 . . . . . . . . 3 2 2 6 8 4 3 7 2 2 2 2 1 1 1 1 1 2 0 0 9 8 8 9 . . . . . . . . 5 1 4 7 1 6 9 9 1949— D J A O N J S M u u e e o u c l n a p c y v t g y e t o e e u e m b m m s e t b b . b r e e . e . . r r r . . . 3 3 3 2 2 2 3 3 1 8 7 0 8 1 2 1 . . . . . . . . 7 3 9 8 3 1 0 1 5 6 5 6 6 6 7 7 . . . . . . . . 4 7 1 7 6 7 1 3 3 3 4 4 4 5 4 5 . . . . . . . . 9 9 4 0 2 7 2 8 0 0 0 0 0 0 0 0 . . . . . . . . 5 4 5 5 8 5 6 6 2 1 1 1 1 1 1 1 1 7 8 6 9 8 9 8 . . . . . . . . 1 4 5 8 0 4 0 9 1950—January.... 41.9 12.3 7.8 2.7 19.1 1950—January... 27.7 6.5 3.3 0.3 17.6 February ., 40.3 12.6 7.6 2.7 17.4 February .. 25.4 5.6 3.5 0.3 16.0 March 47.3 13.5 9.7 2.5 21.6 March. 31.2 7.3 4.0 0.3 19.6 April 43.1 12.7 8.8 3.0 18.6 April , 29.2 6.9 3.9 0.4 18.0 MMay 48.9 13.9 9.6 4.2 21.2 Mayp.... 33.1 7.9 4.8 0.5 19.9 50.9 15.7 8.9 4.2 22.1 June? 35.9 9.0 5.4 0.5 21.0 JuneP P Preliminary. * Includes not only loans insured by Federal Housing Administration but also noninsured loans. 2 Includes both direct loans and paper purchased. AUGUST 1950 1067 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CONSUMER CREDIT STATISTICS—Continued FURNITURE STORE STATISTICS RATIO OF COLLECTIONS TO ACCOUNTS RECEIVABLE * Pe fr r o c m en t p ag 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 Item 1 J 9 u 5 n 0 e * M 19 a 5 y 0 A 19 p 5 ri 0 l 1 J 9 u 5 n 0 e P M y 19 e a 5 a y r 0 A 19 p 5 ri 0 l Year or 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 o l i o d a u r n s e a c e p s 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: 1949 Total -5 +13 -2 +6 +7 +3 May 22 13 14 14 53 C C a re s d h it s a s l a e l s es: -7 +18 -2 +3 -7 J Ju u l n y e 2 1 1 9 1 1 2 2 1 1 4 3 1 1 4 3 4 5 9 3 Instalment -4 + 10 -1 +7 +8 +8 August . . 21 12 14 14 51 Charge account -3 +11 -2 +7 +8 +1 S O e c p to te b m er ber 2 2 0 0 1 1 1 1 1 1 2 2 1 1 3 4 5 5 2 3 Accounts receivable, end November 20 11 12 13 54 of month: December 20 10 12 16 52 Total + 1 +2 + 1 +27 +27 +27 Instalment +1 +1 + 1 +28 +28 +28 1950 January 18 10 12 49 Collections during February 17 10 11 47 month: March 19 11 12 53 Total + 1 +4 -6 + 10 +7 +2 April 17 10 11 (2) 50 Instalment. . . . + 1 +4 -8 +11 +8 +2 May . ... 18 10 12 (2) 52 JuneP 17 10 10 (2) 51 Inventories, end of month, at retail value. -3 +3 +9 +5 0 P Preliminary. 1 Collections during month as percentage of accounts outstanding at Preliminary. beginning of month. 2 Collection of these data for jewelry stores was discontinued after December 1949. DEPARTMENT STORE SALES, ACCOUNTS RECEIVABLE, AND (COLLECTIONS Index numbers, without seasonal adjustment, 1941 average =100 Percentage of total sales Year or month Sales during month A a c t c o e u n n d ts o r f e c m e o iv n a t b h le Collec m tio o n n s t h during Cash I m ns e t n al t - a C c h c a o r u g n e t Total Cash I m ns e t n al t - a C c h c a o r u g n e t I m ns e t n al t - a C c h c a o r u g n e t I m ns e t n a t l- a C c h c a o r u g n e t sales sales sales Averages of monthly data: 1941 100 100 100 100 100 100 100 100 48 9 43 1942 114 131 82 102 78 91 103 110 56 6 38 1943 130 165 71 103 46 79 80 107 61 5 34 1944 145 188 66 112 38 84 70 112 64 4 32 1945 162 211 67 125 37 94 69 127 64 4 32 1946............ 202 242 101 176 50 138 91 168 59 4 37 1947 214 237 154 200 88 174 133 198 55 6 39 1948 225 236 192 219 142 198 181 222 52 7 41 1949 . . ... 213 216 198 213 165 196 200 224 50 8 42 1949—May 208 210 189 209 153 191 196 220 50 8 42 June 200 206 172 "•200 152 187 194 222 51 '8 r41 July. .. . 149 157 147 141 151 163 179 202 52 9 39 August 179 181 195 173 155 161 188 184 50 10 40 September 214 209 224 217 165 182 191 185 49 9 42 October 220 214 242 221 175 191 202 214 48 10 42 November 254 247 259 260 189 213 211 232 48 9 43 December 372 380 325 373 214 285 227 245 50 8 42 1950—January ...... 164 162 174 164 209 222 233 319 49 9 42 February 156 152 183 155 207 191 222 241 48 10 42 Alarch 203 199 230 203 209 185 250 230 48 10 42 April 204 202 214 205 212 190 226 210 49 9 42 May 212 205 226 217 217 194 231 222 48 9 43 June* 203 199 208 208 218 194 230 226 48 9 43 ? Preliminary. r Revised. NOTE.—Data based on reports from a smaller group of stores than is included in the monthly index of sales shown on p. 1059. 1068 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CURRENT STATISTICS FOR FEDERAL RESERVE CHART BOOKS BANK CREDIT, MONEY RATES, AND BUSINESS * 1950 1950 Chart Chart book bookf page June July July July July page June July July July July 28 5 12 19 26i 28 12 19 26i W E E K LY F I G U R ES 2 In billions of dollars In wnit indicated RESERVE BANK CREDIT, ETC. W E E K LY F I G U R ES 2—Gont. Reserve Bank credit, total 18.57 18.95 18.76 18.48 18.64 U. S. Govt. securities, total.. 18.22 18.59 18.29 17.87 17.96 BUSINESS CONDITIONS R E G M T M x r e o e o C N C R N C C c e q R ld m n e a o u h h e o e e e w w e s b s N B s y B i i i s u s s u u c c r i e t e e n o o n r l r Y Y e o r a a r i r y d n t t n t l s e c v g g v o o b k e r e r o o e d s y y s s c c r r r a e k k i e a c c r a n b b r k s s i v i h n c a C C a d e t t e y y u n n r i i r s a , l e t t v k k b y y c b s s n a s d e e a s t a t e e r o n i n r t t o v k k n i d s s a e f e l s e i , p c o a t t s o e i t s a t .. l s . . . .. . . 2, 2 2 1 1 3 4 7 4 8 5 2 4 6 5 5 1 (3 . . . . . . . . . . . . . . . . ) 1 8 6 2 7 1 3 2 0 4 4 9 5 0 1 4 1 4 4 1 4 7 8 3 3 0 7 9 2 2 4 8 2 2 1 1 - 3 9 5 4 7 4 6 4 6 5 1 1 ( . 4 . . . . . . . . . . . . . ) . . 0 1 5 9 9 4 2 0 1 3 3 2 2 4 7 5 1 1 5 5 8 1 5 6 7 2 3 5 7 9 1 6 2 2 1 1 3 9 4 7 5 4 6 4 6 5 1 1 . . . . . . . . . . . . . . . . . 4 8 0 6 2 1 4 3 1 5 5 4 0 6 0 2 9 1 3 5 9 1 3 1 7 7 9 5 5 1 7 7 5 0 ^ 2 2 1 1 - - 3 5 8 4 6 4 4 7 5 * 1 1 P 6 . . > . . . . . . . . . . . . . 0 0 . 2 6 9 8 1 2 4 2 4 3 0 1 . 1 6 2 1 5 9 3 5 4 0 8 9 1 9 0 3 6 2 7 8 ? 2 2 1 1 4 4 5 6 8 4 6 5 4 6 ( 1 1 P p 3 . . ) . . . . . . . . . . . . 5 . . 8 0 4 9 1 0 2 1 9 4 3 : 1 : 1 2 0 0 9 8 6 8 2 4 : 5 2 5 6 Wh S I B o n e a l l d O T F F T F W s C C S e I e e n i o t o s o o c t a o o h c e x d o a p h t t o ( t r r t n m e e e u a a d l A o e s d e t l l e r c d r a s s s t u o s u ( n o t p t c n . g c f r . m p u r ( . ( o ( e d . a ( i r f o m 1 c d n a c m s i r l ) m f d s e o 9 . o t c e s 1 m n u l e 2 J n d m 9 l t o p s c s t . 6 : i s a a 3 p d e t . t s r = r t s r 9 p p i . i e 1 o e = b e t e r . r r 0 d p i u . 1 s . i : u 0 b e e p s a r 0 s c ) u h o : ls 0 t s e u ) s : h : l ' n 1 e ) 0 d 0 l . ) ) . . . . 6 6 6 6 6 6 6 8 8 8 6 6 6 6 5 5 5 7 8 7 5 7 3 2 2 2 2 1 1 1 1 1 * 3 1 9 6 4 5 4 6 5 6 -3 4 2 7 8 . 6 2 2 2 5 3 8 . . . . . . . . . 5 1 7 7 5 8 5 8 9 0 .8 3 2 3 1 2 2 1 1 1 1 7 4 0 4 1 5 3 6 7 4 5 1 7 4 4 9 . 2 5 1 9 6 4 . . . . . . . . . . 2 2 5 2 0 3 5 4 9 6 0 3 2 2 3 2 1 1 1 1 1 5 8 5 3 1 0 5 4 6 7 7 0 1 3 9 6 . 5 9 1 6 1 4 . . . . . . . . . . 1 1 1 7 2 8 9 8 9 3 9 2 3 2 3 2 1 1 1 1 1 8 0 3 5 5 2 6 7 5 5 7 9 . 7 8 9 5 3 6 0 6 5 1 . . . . . . . 1 . . . 4 9 7 7 3 9 8 6 4 0 3 3 2 3 2 1 1 1 1 1 0 7 6 3 0 2 7 6 5 7 5 1 8 0 7 5 . 7 3 1 3 5 7 . . . . . . . . . . 7 4 7 7 0 5 8 3 0 8 8 MEMBER BANKS IN LEADING CITIES Cows (dollars per 100 All reporting banks: pounds) 68 19.43 20.38 20.55 20.60 20.18 Loans and investments 14 67.96 67.65 67.59 67.88 68.03 Hogs (dollars per 100 U. S. Govt. securities, total. 14 36.64 36.15 36.25 36.22 35.7 pounds) 68 20.99 23.49 24.58 24.12 24.34 Bonds 16 24.43 24.45 24.46 24.48 24.48 Butter (cents per pound). 68 59.9 59.9 59.9 60.0 60.1 Notes and certificates.... 16 9.56 9.30 9.27 9.25 9.22 Eggs (cents per dozen) ... 68 30.4 32.1 33.5 35.9 36.7 Bills 16 2.64 2.41 2.52 2.50 2.03 Production: Other securities 18 5.74 5.77 5.87 5.96 5.9.? Steel (% of capacity) 71 101.2 92.6 96.0 99.4 99.3 Demand deposits adjusted.. 47.97 47.40 47.55 47.73 48.47 Automobile (thous. cars)... 71 187 127 185 179 186 U. S. Govt. deposits 14 2.48 2.49 2.45 2.47 2.34 Crude petroleum (thous. Loans, total j 14 25.58 25.73 25.47 25.70 26.35 bbls.) 72 5,357 5,398 5,421 5,464 5,448 Commercial 18 13.60 13.66 13.73 13.79 13.91 Bituminous coal (mill, tons). 72 '1.71 r0.32 1.55 1.87 1.79 Real estate 18 4.68 4.71 4.76 4.78 4.79 Paperboard (thous. tons)... 73 211 129 187 213 216 For purchasing securities: Meat (mill, pounds) 73 277 232 291 295 289 Total 18 2.37 2.45 2.18 2.30 2.67 Electric power (mill. kw. hrs.) 75 6,115 5,380 6,006 6,186 6,190 U. S. Govt. securities. . 18 .51 .68 .59 .76 1.11 Freight carload ings (thous. cars): Other securities 18 1.86 1.77 1.59 1.53 1.57 Total 74 783 554 789 830 845 Other 18 4.91 4.93 .4.95 4.98 5.06 Miscellaneous 74 370 300 369 377 387 N ew York City banks: Department store sales Loans and investments 1 19.72 19.41 19.29 19.32 19.35 (1935-39=100) 75 263 218 265 303 296 U. S. Govt. securities, total. 1 10.27 9.97 9.97 9.89 9.55 Bonds, total holdings 7.24 7.25 7.23 7.20 7.18 Due or callable—5 years 5.73 5.73 5.73 5.72 5.69 1950 Notes and certificates.... 2.15 2.00 1.97 1.97 1.97 Bills .88 .72 .77 .72 .39 Demand deposits adjusted.. 15.20 14.95 14.85 15.00 15.18 Apr. M ay June U. S. Govt. deposits .68 .67 .66 .66 .62 Interbank deposits 3.94 4.02 4.06 3.83 3.78 M O N T H LY F I G U R ES Time deposits ...... 1. 1.57 1.55 1.54 1.53 1.52 In billions of dollars Loans, total. \ j 15 7.95 7.92 7.69 7.77 8.15 DEPOSITS AND CURRENCY F C o o r m p m u e r r c c h i a al s ing securities: 19 4.71 4.72 4.76 4.77 4.83 Deposits and currency e To brokers: Total deposits and currency. 6 P172.60 P173.30 P174.40 On U. S. Govts 19 .33 .49 .39 .56 Total deposits adjusted and On other securities... 19 1.09 1.02 .85 .81 .82 currency 6 P168.50 P169.50 P169.70 Toothers.; J..... 19 .24 .23 .23 .23 Demand deposits adjusted.. 6 P84.50 P85.30 P85.40 Real estate and other 19 1.35 1.36 1.37 1.37 Time deposits adjusted 6 P59.50 P59.50 ^59.70 B a L U. n o k S N s B B a . i n o o s G l o t n ls o u e a d s s v t nd t s . a i n i s d d e e n c v c N u e e . r r e s i w . t t t i / i m f Y e . i e s . , c o n a . t r t k t s . o es ; ta . C l . i .. . t . 1 y 1 1 : . 5 5 7 1 1 7 7 4 2 1 6 8 7 7 1. . . . . 7 4 1 3 2 6 2 9 7 4 2 4 1 6 8 7 7 1 . . . . . 6 1 3 2 2 9 9 0 0 4 4 2 1 6 8 7 7 1 . . . . . 7 2 3 2 3 6 2 0 8 0 2 4 1 6 8 7 1 7 . . . . . 7 3 2 5 2 7 3 9 6 7 4 2 1 6 8 7 7 1 . . . . . 6 1 2 6 3 3 8 5 8 0 Mo $ U C C B . n 1 i o u 0 l e i y S r l , s n a r s, i G e n o n d f n o $ c $ c v $ y 1 i , 5 t 0 2 . r 0 $ o c 2 a u u d , b l n e t i d a a l s p l t s i n o d o i d s e o v i $ n e 5 , t b r s a t b . n o il k t l a s s l . . . .. . .. .. 7 7 7 7 6 6 P 2 1 P 2 8 4 7 4 4 4 . . . . . . 3 1 5 0 1 6 9 6 0 5 0 0 P 2 1 P 2 4 8 7 4 4 3 . . . . . . 5 3 1 0 7 8 5 6 8 9 0 0 P 2 P 1 2 4 7 8 4 4 4 . . . . . . 3 5 1 2 6 7 4 6 6 5 6 0 Demand deposits adjusted.. 15 32.77 32.44 32.70 32.73 33.29 U I . nt S. er G b o a v nk t . d d e e p p o o s s i i t ts s . 15 15 6 1 . . 1 8 6 0 6 1 . .8 6 2 3 6 1 . . 8 8 4 0 6 1 . .8 5 2 7 6 1 . .7 3 1 0 Annual rate T Lo i a C R me n e o s a , m l d e m t e p o e s o t r t s a a l c i te i ts al 1 1 1 5 9 9 1 1 1 8 4 7 3 . . . . 8 3 8 6 9 5 5 4 1 1 4 8 7 3 . . . . 3 9 8 8 7 4 1 5 1 1 4 8 3 7 . . . . 9 4 8 7 7 0 2 8 1 1 9 4 3 7 . . . . 0 4 8 9 2 2 0 3 1 1 9 4 3 8 . . . . 0 4 7 2 9 4 5 0 Tu O N r t n ew h o e v r Y er l o e r o k f a d d C i e n i g t m y c a i n t d ies deposits:5 3 1 0 9 . . 6 6 3 1 0 9 . , 9 8 2 2 9 0 . . 2 0 For purchasing securities . 19 .71 .71 .71 .70 .75 Other 19 3.90 3.91 3.93 3.97 4.03 COMMERCIAL BANKS In billions of dollars MONEY RATES, ETC. Per cent per annum U. 3 C 7 B 1 S 5 . - - i e 5 9 l r y G ls t y e y o i a e e f ( v r a a i s n t . c r r s s e w a o r t s e i s e m s c o s u u r r e . e i . s t ) . i . e , s . : ..; ; . . . 3 . .. 0 . , . . 3 , 3 3 0 2 3 0 3 0 0 1 2 , 1 1 1 1 . . . . 4 8 7 3 2 9 6 4 4 3 1 2 . 1 1 1 1 . . . . 8 6 4 2 3 5 8 8 3 4 1 2 . 1 1 1 1 . . . .2 4 7 8 3 2 5 3 4 4 1 2 . 1 1 1 1 . . . . 7 4 8 2 3 4 5 3 3 4 1. 1 1 1 . . 7 4 2 4 4 3 L C o a U O L a sh n . o t h s a S a e n . a s r s n s G 6 s e d e o t c s v i e u n t. r v i e t s i s e e t c s m u e r e i n ti t e s, s e t otale. 9 9 9 9 9 P P P * 1 > 2 2 4 6 6 0 3 5 . . . . 5 4 8 6 0 0 0 0 P P P 1 P P 2 6 2 4 i 6 6 1 4 1 . . . . . 6 2 1 1 0 0 0 0 0 0 P P 1 P P P 2 2 6 l 4 2 6 6 l 5 . . . . . 1 7 0 2 00 O 0 0 0 Corporate bonds: Holdings of U. S. Govt. se- Aaa 32 2.63 2.65 2.66 2.66 curities : Hi B gh aa -grade municipal bonds. . 3 3 2 2 • 2 3 . . 1 3 2 2 3 2 . . 3 1 3 2 3 2 . . 3 12 3 3 2 . .1 3 2 3 Wi T B th o il i t l n s a l 1 year • : •..'." i, 1 1 0 0 1 2 6 . . 7 0 3 8 1 3 6 . . 1 5 7 7 P P 1 3 6 . . 7 1 0 0 Stock prices (1935-39=100): In • unit, indicated N Ce o r t t e i s f ic a a n t d e s b onds 1 1 0 0 5 7 . .7 6 1 4 5 7 . . 6 7 7 2 P P 7 5. . 4 0 0 0 Vo T R P I l n u o a u d b t i m u e l a l l s r ic o t o f r a u d i t t a r i l a li d ty i ng (mill, sh J a res) 3 3 3 3 3 4 4 4 4 4 3. 1 1 1 1 4 4 5 0 0 2 3 3 4 8 1. 1 1 1 1 5 5 9 0 4 0 0 6 1 3 2. 1 1 1 1 5 0 0 4 3 9 5 1 3 4 2. 1 1 1 1 3 0 4 1 3 5 3 8 1 9 2. 1 1 1 1 3 0 4 3 2 8 1 8 9 0 Ov T N B B er o o o o t n n t 1 a e d d s l s s y . a e „ ( ( n a 5 o d r - v : 1 e b 0 r o y n 1 r 0 d s s . y ) ( r 1 s -5 .) y .. rs . . . ) . 1 1 1 1 0 0 0 0 3 4 2 2 5 4 . . . . 9 4 0 5 2 7 5 0 3 4 2 5 4 2 . . . . 5 0 5 9 4 8 5 4 P P 3 4 P P 2 5 4 3 . . . . 7 1 9 1 O 0 0 0 For footnotes see p. 1072. AUGUST 1950 1069 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CURRENT STATISTICS FOR FEDERAL RESERVE CHART BOOKS—Continued BANK CREDIT, MONEY RATES, AND BUSINESS—Continued Chart 1950 Chart 1950 book book page Apr. May June page Apr. May June l MONTHLY FIGURES—Gont. In billions of dollars MONTHLY FIGURES—Cont. In billions of dollars MEMBER BANKS GOVERNMENT FINANCE Cont. All member banks: Ownership of U. S. Govt. securities—Cont. Loans and investments, total 12 101.43 102.18 103.06 Marketable public issues—Cont. Loans 12 36.84 37.07 37.82 By class of security—Cont. U. S. Govt. securities 12 55.44 55.99 55.98 Bonds—Total outstanding.... 24 102.95 102.95 102.95 Other securities. 12 9.15 9.12 9.27 Nonbank (unrestricted issues Demand deposits adjusted • 12 71.61 72.21 72.45 only), commercial bank, Time deposits 12 29.62 29.69 29.80 and F. R. Bank 24 58.24 57.89 P57.7O Balances due to banks 12 10.77 10.62 10.70 Commercial bank and F. R. Balances due from banks. . . 12 5.36 5.33 5.36 Bank 24 44.45 P44.30 Reserves 12 15.90 15.94 16.19 F. R. Bank 24 6.16 5.80 5.62 Central reserve city banks: By earliest callable or due date: Loans and investments, total 12 24.31 24.46 25.04 Within 1 year-Total outstanding 25 44.93 45.33 42.45 Loans 12 9.19 9.14 9.47 Commercial bank and F. R. U. S. Govt. securities 12 12.96 13.27 13.49 Bank 25 26.67 26.97 P25.80 Other securities 12 2.16 2.05 2.07 F. R. Bank 25 10.60 10.41 9.72 Demand deposits adjustede 12 18.50 18.58 18.82 1-5 years—Total outstanding. 25 48.61 48.61 51.80 Time deposits 12 2.79 2.88 2.90 Commercial bank and F. R. Balances due to banks 12 4.79 4.71 4.81 Bank 25 36.08 36.24 P38.20 Reserves.. 12 5.34 5.36 5.54 F. R. Bank 25 3.16 3.30 5.12 Reserve city banks: 5-10 years—Total outstanding 25 15.93 15.93 15.93 Loans and investments, total 13 38.20 38.56 38.90 Nonbank (unrestricted issues Loans 13 14.47 14.65 14.88 only), commercial bank, U. S. Govt. securities 13 20.55 20.67 20.70 and F. R. Bank 25 8.58 8.58 P8.60 Other securities 13 3.19 3.23 3.33 Commercial Bank and F. R. Demand deposits adjusted e. ....... 13 25.44 25.65 25.80 Bank 25 6.65 6.69 P6.S0 Time deposits 13 11.77 11.76 11.91 F. R. Bank 25 1.15 1.15 1.15 Balances due to banks 13 5.08 5.03 5.02 Over 10 years—Total outstand- Balances due from banks 13 1.67 1.70 1.73 ing 25 45.13 45.13 45.13 Reserves 13 6.13 6.14 6.22 Nonbank (unrestricted issues Country banks: only), commercial bank, Loans and investments, total 13 38.92 39.16 39.12 andF. R. Bank . 25 7.77 7.42 P7.3O Loans 13 13.18 13.27 13.46 Commercial bank and F. R. U. S. Govt. securities 1,3 21.94 22.04 21.79 Bank 25 6.93 6.61 Other securities 13 3.80 3.85 3.87 F. R. Bank 25 2. 2.53 2.35 Demand deposits adjustede 13 27.68 27.98 27.83 ash income and outgo: Time deposits 13 15.06 15.06 14.99 Cash income 26 1.68 2.94 4.69 Balances due from banks 13 3.54 3.48 3.48 Cash outgo 26 3.34 3.70 4.06 Reserves . . . 13 4.42 4.44 4.44 Excess of cash income or outgo.... 26 -1.66 -.76 + .63 MONEY RATES, ETC. Per cent Treasury bills (new issues) 29 1.164 1.167 1.175 Corporate bonds: CONSUMER CREDIT • Aaa 29 2.60 2.61 2.62 Baa 29 3.23 3.25 3.28 Consumer credit, total . 20 18.62 P19.08 P19.63 F. R. Bank discount rate 29 1.50 1.50 1.50 Single-payment loans. 20 3.05 P3.10 P3.14 Commercial paper 29 1.31 1.31 1.31 Charge accounts 20 3.24 P3.29 P3.40 Stock yields: Service credit 20 1.01 n.02 Pi. 03 Dividends/price ratio: Instalment credit, total 20, 21 11.32 Pll.67 P12.06 Common stock 33 6.18 5.97 6.35 Instalment loans 21 4.81 P4.94 P5.11 Preferred stock 33 3.82 3.82 3.85 Instalment sale credit, total. .... 21 6.51 P6.73 P6.95 Automobile 21 3.47 P3.60 P3.76 In unit indicated Other , 21 3.04 P-3 .13 P3.19 Margin requirements (per cent) 35 50 50 50 Stock prices (1935-39 =100), total, . . 35 142 147 148 Stock market credit (mill, dollars): Bank loans 35 461 491 506 Customers' debit balances 35, 36 1,084 1,175 1,256 GOVERNMENT FINANCE Money borrowed 36 619 750 827 Customers' free credit balances.... 36 678 657 673 Gross debt of the U. S. Government: Volume of trading (mill, shares) 35 2.30 1.76 2.08 Total (direct and guaranteed) 22 255.74 256.37 257.38 Bonds (marketable issues) 22 102.95 102.95 102.9. BUSINESS CONDITIONS Notes, certificates, and bills 22 51.65 52.05 52.36 Savings bonds, savings notes.... 22 65.56 65.77 66.01 Personal income (annual rates, bill, Special issues 22 31.80 31.87 32.36 dollars):«5 Guaranteed, noninterest-bearing Total 48 213.8 214.5 P215.8 debt, etc 22 3.78 3.73 3.70 Wage and salary receipts 48 135.3 137.7 P138.9 Ownership of U. S. Govt. securities: Proprietors' income, dividends, and Total: interest 48 58.0 59.3 P60.1 Commercial bankse 23 65.30 65.80 P65.70 All other 48 20.5 17.5 P16.8 Fed. agencies and trust funds... 23 37.31 37.35 37.83Labor force (mill, persons):e F. R. Banks 23 17.80 17.39 18.33 Total 49 63.5 64.1 66.2 Individuals« 23 70.30 70.50 ^70.60 Civilian 49 62.2 62.8 64.9 Corporations and associations *. . 23 24.20 24.70 P24.60 Unemployment 49 3.5 3.1 3.4 Insurance companiese 23 20.50 20.40 P20.20 Employment 49 58.7 59.7 61.5 Mutual savings banks«. . 23 11.60 11.60 m.60 Nonagricultural. . . ; 49 51.5 51.7 52.4 State and local govts. • 23 8.70 8.70 P8.60Employment in nonagricultural estab- Marketable public issues: lishments (mill, persons):e 5 By class of security: Total 50 43.26 43.61 *>43.92 Bills—Total outstanding 24 12.62 13.02 13.53 Manufacturing and mining 50 15.24 15.58 PIS.71 Commercial bank and F. R. Construction 50 2.15 2.21 P2.28 Bank 24 7.10 7.24 P.7.60 Transportation and utilities 50 3.95 3.89 P3.97 F. R. Bank 24 4.37 4.07 3.86 Trade 50 9.42 9.47 P9.52 Notes and certificates—Total Government 50 '5.92 5.87 P5.85 outstanding 24 39.02 39.02 38.82 Hours and earnings at factories: Commercial bank and F. R. Weekly earnings (dollars) 51 56.93 57.72 ^58.89 Bank 24 24.78 24.98 P25.40 Hourly earnings (dollars) 51 1.434 1.443 Pl.454 F. R. Bank 24 7.27 7.52 8.86 Hours worked (per week) 51 39.7 40.0 For footnotes see p. 1072. 1070 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CURRENT STATISTICS FOR FEDERAL RESERVE CHART BOOKS—Continued BANK CREDIT, MONEY RATES, AND BUSINESS—Continued Chart 1950 Chart 1950 book book page Apr. May June page Apr. May June 1 In unit indicated In unit indicated MONTHLY FIGURES—Cont. MONTHLY FIGURES—Cont. BUSINESS CONDITIONS—Cont. BUSINESS CONDITIONS—Cont. Industrial production:5 Consumers' prices (1935-39=100): Total (1935-39 =100) 52 190 195 All items 64 167.3 168.6 170.2 Groups (points in total index): Food 64 196.6 200.3 204.6 Durable manufactures 52 84.1 87.6 P90.0 Apparel 64 185.1 185.1 185.0 Nondurable manufactures . 52 ••84.6 85.0 PS6.3 Rent 64 123.1 123.5 123.9 Minerals 52 21.3 22.0 P23.0 Miscellaneous 64 154.8 155.3 155.3 Manufacturing production Wholesale prices (1926=100): (1935-39 =100), total 53 199 204 P208 Total. . 65 152.9 155.9 157.3 Durable 53 222 231 P237 Farm products 65 159.3 164.7 165.9 Nondurable 53 180 181 Food 65 155.3 159.9 162.1 Selected durable manufactures Other commodities 65 146.4 147.6 148.8 (1935-39=100): Textile products 66 136.4 136.1 136.8 Nonferrous metals 54 207 208 P219 Hides and leather products. . . .. 66 179.4 181.0 182.6 Steel.... .. 54 270 273 271 Chemicals and allied products... 66 117.1 116 114.5 Cement , 54 218 210 214 Fuel and lighting materials 67 131.2 132.1 132.7 Lumber 54 150 149 *>144 Building materials ... 67 194.8 198.1 202.2 Transportation equipment 54 226 261 P279 Metals and metal products .. 67 168.7 n69.8 171.8 Machinery 54 251 259 P264 Miscellaneous 66 112.6 114.7 114.8 Selected nondurable manufactures Prices paid and received by farmers (1935-39=100): (1910-14 = 100): Apparel wool consumption 55 '143 149 Paid, etc 69 251 254 255 Cotton consumption 55 139 140 132 Received 69 241 247 247 Shoes 55 115 106 :ash farm income (mill, dollars): Paperboard. . 55 207 211 '213* Total 70 1,594 1,809 ?>l,903 Newsprint consumption........ 55 168 165 168 Livestock and products 70 1,108 1,334 ^1,266 Manufactured food products.... 55 164 164 P164 Crops 70 436 434 Fuel oil.. 55 «172 175 P175 Govt. payments 70 50 41 P34: Gasoline 55 171 181 P1S8 Industrial chemicals • 55 434 444 455 Rayon 55 349 350 350 INTERNATIONAL TRADE AND FINANCE Sales, inventories, and orders: Sales (bill, dollars):5 Exports and imports (mill, dollars): Manufacturing, total 56 18.5 20.7 21.2 Exports . 76 P81Q P825 P876 Durable 56 8.0 9.1 9.6 Imports 76 P583 P659 P686 Nondurable 56 10.5 11.6 Excess of exports or imports 76 P227 P166 P190 Wholesale, total 57 7.3 8.0 Short-term liabilities to and claims on Durable 57 1 2.1 2.3 foreigners reported by banks (bill, Nondurable 57 5.5 5.9 6 dollars): Retail, total 57 11 11.3 11 Total liabilities. 77 P6.23 P6.35 Durable 57 3.7 3.9 4.2 Official 77 n. P3. 00 Nondurable 57 7.4 7.4 7.5 Invested in U. S. Treasury bills Inventories (bill, dollars);5 and certificates 77 p.77 P.81 Manufacturing, total 56 31.2 31.5 32.1 Private 77 P3.36 P3.35 Durable 56 14.0 14.1 14.4 Claims on foreigners 77 P. 63 P.6\ Nondurable 56 17.2 17.4 17.7 Foreign exchange rates: Wholesale 57 9.4 9.5 9.5 See p. 1091 of this BULLETIN 78, 79 Retail 57 14.1 14.4 14.8 New orders (bill, dollars) Durable 56 8.5 8.9 10.7 1949 1950 Nondurable 56 10.1 11.4 12.0 Construction contracts (3 mo. moving avg., mill, dollars):5 Oct.- Jan.- Apr.- Total 58 1,165 1,123 PI.179 Dec. Mar. June Residential 58 548 559 P5S4 QUARTERLY FIGURES Other 58 617 565 P595 Re s Idential construction: GOVERNMENT FINANCE In billions of dollars Contracts awarded (mill, dollars): Total. 59 564 565 556 Budget receipts and expenditures of 1- and 2-family dwellings 59 417 447 445 U. S. Treasury: Other 59 147 118 111 Expenditures, total 27 9.96 9.09 10.10 Dwellings started (thous. units) ... 59 P126 P140 National defense 27, 28 3.15 3.03 2.97 Value of construction activity (mill, Veterans' Administration 28 1.56 1.58 1.46 dollars): International aid 28 1.10 .99 1.16 Total • 60 1,959 2,250 2,500 Interest on debt 28 1.57 1.26 1.93 Nonresidential:« Allother 28 2.52 2.16 2.50 Public 60 478 557 626 Receipts: Private 60 601 655 712 Net receipts 27 8.42 11.16 8.21 Residential:e Individual income taxes. 28 2.91 6.63 4.23 Public 60 28 28 28 Corporate income, etc 28 2.85 2.68 2.28 Private 60 852 1,010 1,134 Miscellaneous internal revenue. . 28 2.20 1.95 2.05 Freight carloadings:5 Allother 28 .61 .78 .62 Total (1935-39 =100) 61 126 Tax refunds (deduct) 28 .15 .88 .97 Groups (points in total index): Miscellaneous .. 61 75.2 73.0 75.6 Coal 61 26.2 25.2 24.8 MONEY RATES Per cent Per annum All other 61 24.3 24.1 26.4 Department stores: Bank rates on loans to business: Indexes (1935-39 =100) :5 All loans: Sales 62 292 290 298 19 cities 31 2.65 2.60 2.68 Stocks 62 286 285 276 New York City 31 2.38 2.29 2.34 296 stores: 7 Northern and Eastern cities... 31 2.67 2.55 2.67 Sales (mill, dollars) 63 319 330 318 11 Southern and Western cities.. 31 3.03 3.12 3.22 Stocks (mill, dollars) 63 926 '906 842 Loans of $1,000-$10,000: Outstanding orders (mill, dollars) 63 270 ••248 373 19 cities 31 4.53 4.45 4.50 Ratios to sales (months' supply): New York City 31 4.14 3.85 3.94 Total commitments 63 3.7 3.4 3.8 7 Northern and Eastern cities... 31 4.63 4.64 4.58 Stocks 63 2.9 2.7 2.6 11 Southern and Western cities.. 31 4.66 4.64 4.70 For footnotes see p. 1072. AUGUST 1950 1071 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CURRENT STATISTICS FOR FEDERAL RESERVE CHART BOOKS—Continued BANK CREDIT, MONEY RATES, AND BUSINESS—Continued 1919 1950 1949 Chart Chart book book page Oct.- Jan.- Apr.- page Oct.- Jan. Apr.- Dec. Mar. J11 ae Dec. Mar. J u ne Per cent per annum In unit indicated QUARTERLY FIGURES—Gont. QUARTERLY FIGURES—Gont. MONEY RATES—Coilt. BUSINESS FINANCE—Coilt. Bank rates on loans to business—Cont. Plant and equipment expenditures Loans of S10,000-$ 100,000: (bill, dollars):":8 19 cities. . ..', 31 3.61 3.54 3.65 All business. ....•....;............. 42 4.5 New York City 31 3.35 3 .22 3.35 Manufacturing and mining^ rail- 7 Northern and Eastern cities... 31 3.65 3 .60 3.62 roads and utilities 42 2.6 3.3 11 Southern and Western cities. . 31 3.74 3.71 3.83 ,Manufacturing and mining 42 1.7 2.1 Loans of S100,000^$200,000: I 19 cities 31 2.98 2.94 2.94 New York City. 3.1 2.73 2.64 2.73 In billions of dollars 7 Northern and Eastern cities... 31 3.00 2.91 2.82 11 Southern and Western cities.. 31 3.12 3.15 3,17 Individual savings:e Loans of $200,000 and over: Gross savings ; 43 19 cities. 31 2.35 2.3.1 2.39 Liquid savings. 43' New York City.. 31 2.21 . 2.13 2.16 Cash ;....;.,. >...;. 43 7 Northern and Eastern cities. . . 31 2.41 2,28 2.45 U. S. Govt. securities 43 11 Southern and Western cities.. 31 2.56 2.74 2.82 Other securities. . . T . . . . 43 Stock yields; • Insurance : 43 Earnings/price ratio, common Debt liquidation 43 stocks 33 13.49 12.28 • Annual rales in billions of dollars BUSINESS FINANCE In unit indicated GROSS NATIONAL PRODUCT, ETC. e Corp d o o r l a l t a e r s a ): s s « ets and liabilities (bill, rr G os o s v n t. a t p i u o r n c a h l a p se ro s d o u f c t g 5 o . ods and serv- 44 253 f 8 262.5 269. Current assets, total. . . . 37 124.1 124.8 ices. 44' ' 42.8 41.4 41.4 Cash 37 24.9 23.7 Personal consumption expenditures 44 180.6 182 .4 184.5 U. S. Govt. securities. ; 37 15.7 16.7 Durable goods, 46 25.3 26.9 26.7 Inventories 37 43.8 44.2 Nondurable goods 46 97!9 97.5 99.0 Receivables 37 38.3 38.7 Services 46 57.4 58.0 58.8 Current liabilities, total 37 56.4 55.8 Private domestic and foreign invest- Notes and accounts payable 37 33.7 32.8 ment ............... 30.5 38.6 43.9 Federalincome tax liabilities. ... 37 9.7 9.7 Gross private domestic invest- Net working capital 37 67.7 69.0 ment: ; . Corporate security issues: Producers' durable equipment. 45' 18.7 19.3 21.6 Total (bill, dollars) « 38 1.30 1.40 2,19 New construction •••••• 45 • 18.2 19.9 20.9 New money, total (bill, dollars) e. . . 38 . ,86 1.01 1.27 Change in business inventories. 45 —5'. 7 1.3 3.4 Type of security (bill, dollars): Net foreign investment......... 45 -1.9 -2.0 Bonds 38 .64 .83 .76 Personal income, consumption, and Preferred stock 38 .11 .09 .20 saving: 5 Common stock 38 .1.1 .10 .32 Personal income . . 47 205 .4 216.4 .214.7 Use of proceeds (mill, dollars) : Disposable income 47 186.8 197.7 195.5 Plant and equipment: Consumption expenditures. ..... 47 180.6 182.4 184.5 All issuers . 39 597 • 777 958 Net personal saving 47 6.2 15.3 11.0 Public utility 6 39 396 567 774J Railroad 39 77 106 81 Industrial6 39 112 73 103 Working capital: All issuers 39 265 237 317 Public utility6.. 39 5 1 Dec. [une Dec. Railroad. 39 18 31 " 30 31 Industrial6 39 106 94 SEMIANNUAL FIGURES Bonds (bill, dollars):« Public 38 .3\ .69 .98 INSURED COMMERCIAL BANKS In billions of dollars Private 38 .67 .46 .65!i Corp ( o a r n a n te u . a p l r o r f a i t t e s, s , ta b x il e l, s , d a o n ll d a r d s i ) v : i • d 5 ends Lo C an o s m : mercial '•. '. 11 18.76 16.29 16.94 Profits before taxes 40. 27:6 : 29.2 732.0 Agricultural 11 2.78 2.73 2.96 Profits after taxes (dividends and Real estate. . 11 10.67 10.89 11.41 undistributed profits) 40 16.9 17.8 '•M9.5 Consumer 11 6.80 7.17 8.00 Undistributed profits 40 8.7 9.7 -•Ml .4 For purchasing securities: Corporate profits after taxes (quar- To brokers and dealers 11 1.34 1.97 1.75 terly totals): To others 11 0.94 0.90 0.86 All corporations (bill, dollars)e. . . . 41 4.2 4.5 State and local government securities. 11 5.51 5.76 6.40 Large la r c s o ) rporations, total (bill, dol- 41 1.2 : 1.2 Other securities 11 3.42 3.49 3.57 Manufacturing (mill, dollars): Durable 41 424 529 Nondurable; 41. 342 323 Electric power and telephone (mill, dollars) 41 267 304 Railroads (mill, dollars) 41 161 51 • Estimated. P Preliminary. r Revised. c Corrected. 1 For charts on pp. 22, 29, and 35, figures for a more recent period are available in the regular BULLETIN tables that show those series. Because the Chart Book is usually released for publication some time after the BULLETIN has gone.to press, most weekly charts and several monthly charts include figures for a more recent date than are shown in this table. 2 Figures for other than Wednesday dates are shown Under the Wednesday included in the weekly period. 3 Less than 5 million dollars. 4 Deficiency of less than 5 million dollars. ? Adjusted for seasonal variation.. 6 Beginning with the second quarter of 1950 data are not strictly comparable with those for earlier quarters because of changes in components. 7 Estimates of Council of Economic Advisers, based on preliminary data. 8 Expenditures anticipated by business during the third quarter of 1950 are (in billions of dollars): All business, 4.5; manufacturing and mining, railroads and utilities, 3.2; manufacturing and mining, 2.1. * Monthly issues of this edition of the Chart Book may be obtained at an annual subscription rate of $6.00; individual copies of monthly issues at 60 cents each. 1072 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CURRENT STATISTICS FOR FEDERAL RESERVE CHART BOOKS—Continued CONSUMER CREDIT Chart 1950 Chart 1950 book book page Apr. Miiy" page Apr. May?' JuneP r In •millions of dollars In millions of dollars Consumer credit outstanding, total.. . 3 18,620 19,077 19,627 Consumer instalment sale credit Instalment credit, total 3, 5 11,322 1.1 ,66812,063 granted, cumulative totals: * Instalment loans 5 4,811 4,935 5,113 By all other retailers 7 874 986 995 Instalment sale credit 5 6,511 6,733 6,950 By department stores and mail- Charge accounts 3 3,241 3,290 3,399 order houses 7 764 864 881 Single-payment loans 3 3 ,048 3,101 3,140 By furniture and household appli- Service credit 3 1,009 1,018 1,025 ance stores 7 614 698 727 Consumer credit outstanding, cumu- By automobile dealers 7 443 501 550 lative totals:l Consumer instalment loan credit out- Instalment credit 4 18,620 19,077 19.627 standing, cumulative totals: l Charge accounts 4 7,298 7,409 7.564 Commercial and industrial banks. 8 4,811 4,935 5,113 Single-payment loans 4 4,057 4,119 4,165 Small loan companies 8 2,483 2,534 2,605 Service credit. 4 1,009 1,0.1.8 1 .025 Credit unions 8 1,538 1,575 1,627 Consumer instalment sale credit out- Miscellaneous lenders 8 1,107 1,125 1,153 standing, cumulative totals: : Insured repair and modernization All other retailers 6 6,511 6,733 6,950 loans 8 785 798 818 Department stores and mail-order houses 6 5,880 6,083 6,288 Furniture and household appliance stores 6 4,901 5,072 5,260 Automobile dealers 6 3,470 3,600 3,761 P Preliminary. 1 The figures shown here are cumulative totals, not aggregates for the individual components. Aggregates for each component may be derived by subtracting from the figure shown, the total immediately following it. JULY CROP REPORT, BY FEDERAL RESERVE DISTRICTS BASED ON ESTIMATES OF THE DEPARTMENT OF AGRICULTURE, BY STATES, AS OF JULY 1, 1950 [In thousands of units] Corn Total wheat j Winter wheat Spring wheat Federal Reserve district Production Estimate Production Estimate j Production Estimate Production Estimate 1949 July 1, 1950 1949 July 1, 1950 ! 1949 July 1, 1950 1949 July J, 1950 Bushels Bushels Bushels Bushels Bushels Bushels Bushels Bushels Boston 6.904 7,742 New York . . . 33,917 35,975 13,095 12.898 13.011 12,818 84 80 Pliiladel pliia 56,510 55,066 18,961 17.730 18,961 17,730 Cleveland 251,347 232 633 65 586 53 1 70 i 65,586 53,170 Richmond 190,015 182,532 24.677 23,883 | 24,677 23,883 Atlanta 204.395 205,091. 6.372 5,713 6,372 5 ?n Chicago . . 1 351,980 1,204,645 93 56' 66 950 90,920 65,648 2,642 1,302 St. Louis 430,953 417,757 73,509 47,870 73,488 47,855 21 15 \I innea pol is 378,335 378 370 230 399 222 696 29,356 26.395 201,043 196,301 Kansas City 396,589 371,017 374,607 336.197 367,761 332.937 6,846 3,260 Dallas 69 650 77 364 101 63? 21 895 104.507 21,788 125 107 San Francisco 7,195 7,410 141,063 147,584 107,029 112,608 34,034 34,976 Total S 377,790 3,175,602 1,146,463 956,586 901,668 720,545 244,795 236,041 Oats Tame Hay Tobacco White potatoes Federal Reserve district Production Estimate Production Estimate Production Estimate Production Estimate 1919 July 1, 1950 1949 July 1, 1950 19-19 July 1, 1950 1949 July 1, 1950 Bushels Bushels Tons Tons Pounds Pounds Bushels Bushels Boston 5,831 5,839 3,613 3,679 39.457 40,015 75,541 66,472 New York 23 959 32 5?0 5 2?2 5 950 915 92 1 35,154 38,592 Philadelphia ..... . . 15,601 16,590 2,471 2 634 58,709 61,405 19,861 20,312 Cleveland 58,869 52.225 5,719 6,068 150,699 132,611. 12,405 12,320 Richmond 35,103 37 250 5 292 4 917 1 076 513 1,119,940 22,032 24,015 Atlanta . 28,126 30,553 4,055 3,506 247,627 224.396 13,667 14,399 Chicago 591,639 599,833 16,876 19,793 32,460 33,775 30,392 26,998 St Louis 64 738 73 507 9 829 9 652 357,353 312.933 7,496 7,002 Minneapolis . . .. 322,573 344,503 9,1 74 10 973 2,431 ?. 409 42,612 38,151 Kansas City 106,002 133.346 10.220 .9,045 4,212 3 f 738 31,407 28,842 Dallas 37 499 33 680 1 786 1 783 4,123 3,181 San Francisco . . 32,984 34,926 12,752 13 333 107,272 110,147 Total 1,322,924 1,394,772 87,009 91,333 1,970,376 1,932,146 401,962 390,431 NOTE.—194.9 figures for tobacco are as revised in July 1950. AUGUST 1950 1073 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EARNINGS AND EXPENSES OF FEDERAL RESERVE BANKS FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 1950 System Boston New York Ph p il h a i d a el- Cleveland Richmond Atlanta Chicago St. Louis M ap in o n li e s - K C an it s y as Dallas Fra S n a c n isco Current Earnings Discounts and advances $ 976,712 70,227$ 362,219$ 43,024$ 98,263 $ 54,501 5 24,451$ 140, 93$ 35,572$ 31,993$ 47, 119 $ 21,214$ 47,336 U. S. Government securities 135,333,849 9,327,11831,579,917 3,998,400 12,540,720 8,740,393 7,246,858 20,514,916 7,461,982 4,186,974 6,279,567 6,139,893 12,317,111 Industrial loans 58,140 51,675 15 2,736 96 3,618 Commitments to make industrial loans 3,277 21 2,054 170 570 462 All other 358,729 5,992 71,002 3,967 106,384 5,984 10,163 22,989 6,636 1,660 114,839 4,607 4,506 Total current earnings. 136,730,707 9,403,337 32,013,138 9,097,087 12,747,436 8,803,784 7,281,472 20,679,268 7,504,286 4,224,245 6,441,525 6,165,714 12,369,415 Current Expenses Operating expenses: Salaries: Officers 1,876,981 119,481 370,951 89,753 151,248 124,118 133,900 226,045 128,666 115,379 132,610 117,465 167,365 Employees 24,814,777 ,644,447 5,916,413 1,484,323 2,098,497 1,613,651 1,144,613 3,837,386 1,485,025 745,579 1,351,008 1,227,795 2,266,040 Retirement System contributions 2,671,180 172,934 607,612 155,179 223,914 175,916 140,932 416,027 156,707 157,580 137,278 247,855 Legal fees. 1,426 76 400 750 171 79,246 25 4 Directors' fees and expenses 146,742 8,357 11,900 8,614 9,900 9,608 19,546 10,450 12,066 13,113 13,173 18,587 Federal Advisory Council, fees and ex- " 'li',428 penses 12,094 892 791 761 1,136 475 1,256 1,081 980 1,141 875 1,811 Traveling expenses (other than of direc- 895 tors and members of Federal Advisory Council) 417,970 27,256 59,574 16,605 35,772 34,555 25,426 54,306 38,166 30,790 27,739 28,290 39,491 Postage and expressage 4,513,705 400,738 676,386 280,915 387,987 389,021 373,930 649,890 239,859 147,030 252,810 240,836 474,303 Telephone and telegraph 272,605 14,505 52,085 17,717 23,986 16,650 22,179 17,467 22,480 13,105 20,087 18,857 33,487 Printing, stationery, and supplies 1,830,035 171,106 356,993 118,682 138,395 113,519 116,611 301,961 110,851 63,220 96,808 91,405 150,484 Insurance 348,670 24,192 89,853 15,621 30,237 18,850 15,779 45,343 20,651 3,469 23,331 19,416 41,928 Taxes on real estate 934,979 102,000 242,048 47,308 105,455 44,186 40,510 116,099 40,920 49,473 53,040 25,102 68,838 Depreciation (building) 689,479 27,916 139,232 33,176 93,284 45,873 21,651 134,298 76,571 15,703 44,678 19,659 37,438 Light, heat, power, and water 361,154 25,043 69,095 25,198 48,768 27,042 18,668 46,118 29,555 13,061 18,301 19,146 21,159 Repairs and alterations 267,749 13,099 25,543 12,709 32,568 14,608 12,242 55,224 27,435 31,763 28,104 5,279 9,175 Rent 132,268 630 3,988 3,206 3,828 9,589 33,727 2,251 660 4,617 4,344 65,428 Furniture and equipment 682,433 97,778 254,569 31,644 50,140 26,069 16,989 95,129 44,601 5,901 20,144 29,692 9,777 All other 1,914,131 118,185 153,868 159,532 296,586 150,509 106,227 306,954 106,870 83,919 120,696 11.7,714 193,071 Total operating expenses 41,888,378 2,968,635 9,026,913 2,501,725 3,731,479 2,809,228 2,220,048 6,347,505 2,543,825 1,410,621 2,365,832 2,116,326 3,846,241 Less reimbursement for certain fiscal agency and other expenses 8,050,892 467,318 1,525,241 427,215 640,315 463,971 453,984) 1,405,166 470,169 273,727 513,752 527,297 882,737 J Net operating expenses. . . 33,837,486 2,501,317 7,501,672 2,074,510 3,091,164 2,345,257 1,766,064 4,942,339 2,073,656 1,136,894 1,852,080 1,589,029 2,963,504 s Assessment for expenses of Board of Govpi ernors 1,780,300 112,200 558,300 141,600 162,700 89,100 74,000 245,800 65,000 44,800 65,100 62,800 158,900 > Federal Reserve currency: Original cost 2,698,418 200,855 593,260 153,292 192,871 187,615 218,504 542,968 156,206 50,474 100,285 53,170 248,918 Cost of redemption 345,315 19,414 64,040 20,360 26,227 26,139 38,631 56,585 18,436 7,107 13,347 16,869 38,160 Total current expenses.. . 38,661,519 2,833,786 8,717,272 2,389,762 3,472,962 2,648,111 2,097,199 5,787,692 2,313,298 1,239,275 2,030,812 1,721,868 3,409,482 Current net earnings 98,069,188 6,569,55123,295,866 6,707,325 9,274,474 6,155,673 5,184,27314,891,576 5,190,9 2,984,970 4,410,713 4,443,846 8,959,933 g s Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTERNATIONAL FINANCIAL STATISTICS PAGE International capital transactions of the United States. . 1076-1081 Gold production . 1081 Reported gold reserves of central banks and governments. . 1082 Gold movements; gold stock of the United States. . 1083 International Monetary Fund and Bank. . 1084 Central Banks 1084-1088 Money rates in foreign countries. . 1089 Commercial banks. . 1090 Foreign exchange rates 1091 Price movements: Wholesale prices . 1092 Retail food prices and cost of living. 1093 Security prices , . 1093 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. AUGUST 1950 1075 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 From th J ro a u n g . h 2 — , 1 9 \ 3 \ 5, C (Total. l To I t n a c l rease fu n in O d s f f f o i i c n r i e a i U l g i n . S b . ank O in th g er f i t I n u e n b i n s r c n n a t d r i n a e t s U u k a t i o t s . i o i n e f o n S g i n i a . n n s l - I • D b i a n a e f b u n c r U n r k o e d . i a a n s d s S g e . i se F f R c u o o u e n r f t r e d ^ u i i t s g r S i n e n 2 . s : :• s ; D I e n f f c o u f o l u m n r o e r d w i e i t s g s i t n e 2 o i s c f : b I b n r a o f l l k a o e n w r c a e g i s n e 1935—Dec. (Jan. 1, 1936). 1,440.7 631.5 38.0 593.5 361.4 125.2 316.7 6.0 1936—Dec. 30 2,667.4 989.5 140.1 849.4 431.5 316.2 917.4 12.9 1937—Dec. 29 3,501 1 1,259.3 334.7 924.6 449.1 583.2 1,162.0 47.5 1938—Dec. (Jan. 4, 1939). 3,933.0 1,513.9 327.0 1,186.9 510.1 641.8 1,219.7 47.6 1939—Dec. (Jan. 3, 1940). 5,112.8 2,522.4 634.1 1,888.3 650.4 725.7 1,133.7 80.6 1940—Dec. (Jan. 1, 1941). 5,807.9 3,239.3 1,281.1 1,958.3 775.1 803.8 888.7 100.9 1941—Dec. 31 5,354.1 2,979.6 1,177 1 1,802.6 791.3 855.5 626.7 100.9 1942—Dec. 31 » 5,980.2 3,465.5 1,557.2 1,908.3 888.8 848.2 673.3 104.4 1943—Dec. 31 7,267.1 4,644.8 2,610.0 2,034.8 877.6 925.9 701.1 117.8 1944—Dec. 31 7,728.4 4,865.2 2,624.9 2,240.3 805.8 1.019.4 911.8 126.3 1945—Dec. 31. 8,802.8 6,144.5 3,469.0 2,675.5 742.7 972.8 798.7 144.1 1946—Dec. 31.. ...:.... 8,009.5 5,272.3 2,333.6 2,938.7 453.8 427.2 1,237.9 464.5 153.7 1947—Dec. 31 8,343.7 4,120.3 1,121.8 2,998.5 2,242.0 186.5 1,276.9 375.5 142.4 1948—Dec. 31. ...,,.,.. }\ 8,569.1 5,119.5 2,126 0 2,993,6; l,844f3, 116.& ; 183.3 123.1 1949—June 30 8,567.5 5,008.8 2,015.0 2,993.8 1,874.7 275.0 1,190.5 102.1 116.3 July 31. . .,,. 8,457.9 4,868.7 1,864.6 3,004.1 1,859.5 287.5 1,199.6 : 123.1 119.5 Aug. 31. :'/;'!.\ 8,534.7 4,873.6 1,866.3 3,007.2 1,778.8 338.0 1V20315 219.6 121.2 Sept. 30 8,492.4 4,937.0 1,877.6 3,059.5 1,722.1 316.0 1,123.5 266.8 127.0 Oct. 31. ; .... 8,660.2 5,115.3 2,025.6 3,089;7 1,692.4 285.0 1,176.4 264.4 126.8 Nov. 30., ...; 8,658.9 5,140.2 h 2,111.1 3;029.1 1,655.1 288.8 1;196;4;- ; 257.1 121.3 Dec. 31 8,763.5 5,226.0 2,197.8 3,028.2 1,637.8 307.6 1,209.9 258.5 123.7 1950—Jan. 31 8,864.0 5,245.9 2,153.6 . 3,092.4 ,1,723.0 404.5 1,103.7 263.8 123.0 Feb. 28....;i 9,092.5 5,283.8 2,189.7 ^ 3,094a 1,707:1' ••- • 458.7:••:)[ ;; i;2i0i0 •r 310.1 122.8 A M M p a a y r r . . 3 3 1 0P 31PI'.':,:'•.... 9 9 9 , , , 5 3 1 7 8 7 1 9 4 . . . 9 9 9 5 5 5 , , , 6 3 5 1 1 0 4 7 0 . . . 9 0 0 2 2 2, , , 2 1 1 8 6 1 5 7 5 . . . 7 0 8 3 3 3 , , , 3 3 2 2 3 0 9 3 1 ; . . 0 1 3 ; 1 1 l, , , 6 6 6 6 6 8 3 2 9 : . . . 4 3 4 n 4 4 8 9 0 9 . . 6 0 '•> 1 1 , , b 1 1 , 7 7 1 4 8 9 . . 8 2 6 .8 u • 3 4 4 2 7 5 3 9 2 . . . 6 3 3 1 1 1 3 3 2 0 0 5 . . . 6 2 0 TABLE 2.—TOTAL CAPITAL MOVEMENT BY COUNTRIES From th r J o a u n g . h 2 — , : 1935, s ti t I o i n t n u te a t r i l o n i n n a s - - 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- 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 - Am La er ti i n ca Asia o A th l e l r 1944—Dec. 31.....;.. 7,728.4 1,090.0 585.7 506.2 664.3 63.1 1,172.5 4,081.8 976.4 ,193.7 1,273.6 203.0 1945—Dec. 31 8,802.8 892.5 464.2 539.7 722.3 106.5 1,311.8 4,037.0 i<395.7 ,338.4 1,784.1 247.5 1946—Dec. 31 453.8 7,555.7 563.1 384.8 326.4 766.1 287.5 1,246.3 3,574.2 979.7 ,474.0 1,258.3 269.6 1947—Dec. 31 >,067.3 6,276.4 437.0 234.3 213.8 839.3 150.1 1,100.6 2,975.1 688.6 ,383.4 984.3 244.9 1948—Dec. 31 L,677.1 6,891.9 659.7 74.2 103.0 846.0 335.9 1,122.2 3,141:1 947:3 ,503.6 1,065.2 234.9 1949—June 30. .. 1,619.1 6,948.4 533.5 107.1 134.8 910.5 376.5 L,080.1 3,142.5 925.4 ,660.8 964.0 255.7 July 3i.:.:]!.. L,615.9 6,842.0 473.7 78.0 143,7 885.6 381.3 1,083.5 3,045.9 h 909;3 ,689.4 948.5 248.9 Aug. 31 L.630.6 6,904.1 479.2 78.4 128.7 898.5 400.6 1,097.0 3,082.2 903.9 ,715.1 964.0 239.0 Sept. 30 L.623.7 6,868.6 525.5 95.2 174.0 910.0 291.4 :1,089.6 3,085.7 893.5 ,677.0 955.1 257.2 Oct. 31.:..-.. ,594.9 7,065.3 587.3 110.9 189.6 933.8 ! 291.6 L,093.9 3,207.1 :92S,7A ,756.7 908.. 1 264.7 Nov. 30........ ,558.9 7,100.0 644.5 125.3 165.3 925.1 297.1 :L,089.4 3,246.8 952.8 i,768.5 875.2 256.7 Dec. 31 :,541.7 7,221.8 682.4 113.2 171.6 951.2 301.4 1,135.8 3,355.5 984.7 i,780.2 852.0 249.4 1950—Jan. 31. ....... 1,526.8 7,337.2 728.9 93.8 175.3 890.1 295.1 :L.186.3 3,369,6 .1,022.2 I,792.3 882.9 270.2 F M eb a . r . 3 2 1 8........ 1 1 , ,6 6 1 1 3 1 . . 7 3 7 7, , 5 4 6 8 1 1 . : 2 2 7 79 6 8 4 . . 7 4 1 11 1 2 5 . . 0 1 1 17 6 0 2 . . 6 0 8 95 9 4 0 . . 2 0 2 2 6 9 5 8. . 2 4 • 1 L , , 2 2 1 2 7 1 . .0 8 3 3 , , 4 5 4 2 7 2 . . 5 0 1 1 , , 0 0 2 1 4 0 . . 2 8 I I , , 8 8 3 5 3 4 . . 5 1 9 93 4 3 2 . . 2 1 2 2 3 4 2 2 . . 2 8 Apr. 30? 1,614.7 7,775.2 879.5 114.2 188.9 983.7 255.5 L,240.0 3,661.8 1,009.9 I,876.4 1,005.4 221.7 May 31P 1,628.4 7,943.6 942.0 156.2 210.6 992.5 262.6 ,240.0 3,803.9 1,036.3 I,851.2 1,023.7 228.4 P Preliminary. 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 and special deposit accounts held with the U. S. Treasury; 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.), and also special deposit accounts held with the U. S. Treasury. 2 Beginning with 1947, these figures include transactions of international institutions, which are shown separately in Tables 5 and 6. Securities of such institutions are included in. foreign securities. . , , , , . ' . .. 3 The weekly series of capital movement statistics reported through Julyi, 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 takesinto 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 \943| p. 98. NOTE.—Statistics reported by banks, bankers; brokers, and dealers., For full descriptibmof statistics seeBanking and Monetary Statistics, pp. 558-560; for back figures through 1941 see Tables 161 and 162, pp. 574-637 in the same piiblicktiori, and for those subsequent to 1941 see BULLETIN for February 1950,;pp. 246-251. For revision-of earlier figures to include movement inofficial Philippine accounts held with U. S. Treasury, see BULLETIN for July ,1946, pp. 8.15-819, Certain of the figures in tables "Short-term Liabilities to and Claims on Foreigners Reported by Banks in the United States, byCouh'tries" are not strictly comparable with the corresponding figuresi foi 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 United States" have been adjusted to exclude the unreal movements introduced by these changes. For further explanation see Banking and Monetary Statistics, pp. 578-591, and BULLETIN for March 1947, pp. 338-339, and September 1945, pp. 967-971. 1076 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 3.—INCREASE IN FOREIGN BANKING FUNDS IN U. S., BY COUNTRIES Inter- From t h J r a o n u . g h 2 — , 1935, n t a u in t t i i s o o t n i n - a s l 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- 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 a e t r i i n ca Asia o A th l e l r 1944—Dec. 31 4,865 .2 804.4 356.6 193.1 221.4 7.0 611.2 2,193.7 818.6 794.7 888.6 lf>9.7 1945—Dec. 31 6,144.5 646 4 229 9 265.0 286 3 50.1 745.8 •2,223.4 ,414.2 924.9 1.369.1 212.9 1946—Dec. 31 453.8 5,272.3 397 .6 165.8 208.2 359 0 247.6 687.2 2,065.5 823.9 983.3 1 .135.7 263.9 1947—Dec. 31 2,242.0 4,120.3 264.9 87.6 126.7 432.8 132.8 576.6 1,621 .4 301 .6 1,095.0 877.3 224.9 1948—Dec. 31 1,844.3 5,119.5 485.0 112.6 106.1 525.3 313.2 574.8 2.117.1 667.2 1,165.4 971.2 198.6 1949—Tune 30 1.874 5,008.8 349.1 114 2 104.3 557.9 364.0 514.4 2,003.8 671 .8 1,216.9 900 7 215.6 July 31 1.859 4,868. 7 290.2 84 0 113.6 531 .1 367 0 514.2 1,900.1 640.7 1,230.8 888.3 208.8 Aug. 31 ,778 4,873 6 291.1 70 3 102.0 538.2 381 .0 516.4 1.899.0 635.0 1,246.4 897.0, 196.2 Sept. 30 ,722 4,937.0 377.6 86 8 149.1 545.1 265.5 501 .0 .,925.1 719.6 1,197.8 878.9 215.7 Oct. 3\ , 692 5.115.3 451 .3 •103 8 166.3 563.2 266.3 507.4 2,058.3 702.8 1,294.9 835.9 223.3 Nov. 30 ,655 5,140.2 495.3 103.0 146.3 55 1.0 275.4 512.0 2.086.0 717.0 1,317.5 803.9 215.8 Dec. 31 ,637 5,226.0 513.0 91 4 153.9 563.3 283.3 553.7 2,158.7 761.1 1,315.1 780.4 210.7 1950—Jan. 31 .723 5,215.9 548.1 72.2 160.7 493.8 276.4 575.8 2,127.1 811.4 1,264.9 801.5 241.0 Feb. 28 ; .... ,707 5,283.8 571.9 79.3 152.5 497.0 282 603.9 2,186.8 765.2 1,267.2 846.7 217.8 Mar. 31.......... 689 5 ,3! 7 .0 60 i . 8 76.9 160.9 562 .1 245.7 594.8 2.242.J 719.5 1.269.5 846.3 209.6 Apr. 3Qr> . ,662 5,500.0 682.5 80.0 178.9 584.1 236.5 609.0 2,371 .1 737.0 1,284.0 912.9 195.1 May 31 P 1,663 5 ,6! 4.9 740.1 106.1 202.9 586.1 253.2 608.6 2.197.2 739.6 1,249.0 926.3 202.7 TABLE 4.—DECREASE IN U. S. BANKING FUNDS ABROAD, BY COUNTRIES From Jan. 2, 1935, through— Total U K d n o i 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- 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 h l e l r 1944—Dec. 31 805.8 266.1 77 7 18.3 6 8 26.2 231.5 626.6 64.8 37.0 77.7 -.3 1945—Dec. 31 742.7 266 6 78 0 -17 7 5 2 26 2 235 . 1 593.4 39.5 9.1 99.2 1.5 1946—Dec. 31 427.2 244 3 73 4 -132.3 -1 7 10 6 226.9 421.3 40.7 -58.8 29.9 -5.8 1947—Dec. 31 186.5 262 8 55 7 - 30 5 1 1 5 5 190.9 485.5 65.4 -346.3 2.0 -20.1 1948—Dec. 31 116.8 267 5 39 9 -32.7 12 10.8 203.5 410.3 53.0 -348.6 10.3 -8.3 1949_ J ju u n l e y 3 3 0 1 2 28 7 7 5 . . 5 0 2 2 7 7 5 1. . 5 0 - - 6 7 . . 0 9 1 14 3 . . 4 9 1 1 . . 8 8 -.5 .1 2 21 1 7 4 .2 9 4 4 9 9 6 9 . . 5 8 6 5 0 9 . . 3 0 - - 2 2 5 5 5 0 . . 2 8 - -1 1 4 8 . . 2 0 - - 7 7 . . 7 4 Aug. 31 338.0 277.1 9.8 12.7 1 9 5.5 227.6 534.5 58.5 -242.3 -7.5 -5.2 Sept. 30 316.0 235.2 10.9 11.8 4.5 11 .2 224.9 498.5 57.5 -235.9 2.4 -6.5 Oct. 31 285.0 225.6 11.0 12.6 4.1 10.5 221.1 484.9 61.1 -250.2 -4.4 -6.4 Nov. 30 288.8 237.2 26.9 12.3 3 5 7 7 211.6 499.2 59.9 -257.9 -6.1 -6.2 Dec. 31 307.6 254.8 27.2 13.4 4.3 4.0 211.3 515.0 55.3 -243.1 -10.6 -9.0 1950— Ian. 3\ 404.5 259.4 27.6 16.0 2.5 5.8 238.6 549.8 52.7 -179.3 .1 -18.7 Feb. 28 458.7 267.7 43.1 14.2 2.6 3.2 239.2 570.0 50.4 -143.4 5.1 -23.4 Alar. 31 480.6 268.3 43.7 14.3 .3 7.0 240.5 574.1 55.4 -135.5 13.3 -26.7 Anr. 30P 499.0 268.7 43.2 14.9 1.9 6.4 239.7 574.7 57.3 -127.8 22.8 -28.2 May 31P 517.4 264.7 58. 1 1 ! . 2 2.0 240.8 580.6 60.2 -122.5 28.4 -29.3 TABLE 5.—FOREIGN SECURITIES: RETURN OF U. S. FUNDS, BY COUNTRIES (Net Purchases by Foreigners of Foreign Securities Owned in U. S.) Inter- From t h J r a o n u . g h 2 — , 1935, n t a u in t t i i s o o t n i n - a s ! 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 er n i - t d z- Italy E O u t r h o e p r e E T u o ro ta p l e C ad an a - A L m a e t r i i n ca Asia o A th i e l r £944—Dec 31 1 019 4 126 5 51 0 33 6 44 5 27 6 246 9 530.1 104.9 302.0 61.3 21 0 I94S—r)ec 31 O79 8 117 7 51 2 33.0 45.2 27 5 249.2 523.8 49.1 317.1 60.8 22.0 1946—Dec 31 I 237 9 96 8 50 2 26 0 31 2 26 7 260 2 491.2 236.6 448.4 61.1 .7 i!947—Dec 31 -249 3 1,526.2 94 9 47 1 -3.9 16.3 26.5 275.8 456.7 441.8 537.6 61.6 28.4 J94S—])ec 3i -249.3 I 431 3 84 9 42 9 -9 1 — 19 0 26 5 287 2 413.3 339.7 578.3 63.2 36.9 1949—june 30 -265 3 L 455 8 80 9 42.8 -10 0 — 15 4 27 0 295.0 420.3 344.4 588.8 63.9 38.4 Julv 31 —265 3 I 464 8 81 4 42 8 —9 2 — 16 4 27 1 295 4 421-1 350.3 591.0 63.9 38 6 Aug. 31 -265.3 1,468.8 79.1 42 .9 -9.5 -14.1 27.1 296.2 421.7 352.4 591.8 63.9 39.1 Sept 30 . .. — 265 ? L 388 8 77 1 43 2 —9 6 — 12 0 26 9 306. 1 431 .7 260.5 593.5 63.9 39.1 Oct 31 -265.3 1,441.7 72.8 42.9 -9.7 -9.2 26.9 307.4 431 .1 312.9 594.6 63.9 39.2 Nov 30 -265 3 461 7 71 4 43 0 —9 7 —6 6 26 9 308.1 433.2 330.0 595.4 64.0 39.2 Dec. 31 -265 3 1,475.1 71.4 43.2 -9.3 .1 27.0 311.7 444.1 329.1 598.5 63.9 39.5 1950—Jan. 31 -365.8 ,469.5 71 .3 44.0 -15.1 2.4 27.0 313.4 443.0 320.9 601.9 64.0 39.8 Feb. 28 -269.1 1,479.0 70.9 43.9 -16.9 4.5 27.0 314.4 443.8 326.9 604.1 64.1 40.1 Mar. 31 -267.7 ,446.3 70.4 45.1 -16.9 8.2 27.1 311.9 44 8.9 286.5 606.5 64.1 40.3 Apr. 30" -266.1 ,440.3 69.3 45.0 -14.5 11.0 27.1 315.5 •153.3 2 70.6 606.9 64.1 45.4 May 3H> -266.0 ,464.8 68.0 44.6 -15.0 14.2 27.4 316.1 455.3 289.8 609.8 64.2 45.7 Preliminary. AUGUST 1950 1077 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 6.—DOMESTIC SECURITIES: INFLOW OF FOREIGN FUNDS, BY COUNTRIES (Net Purchases by Foreigners of U. S. Securities) From th J ro a u n g . h 2 — , 1935, n t a I u i n n t t i i t s o o e t n i r n - - a s l 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- 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 a e t r i i n ca Asia o A th l e l r 1944—Dec 31 911.8 -125.4 77.3 239.0 368.5 1.9 72.4 633.7 -28.1 54.9 240.5 10.7 1945—Dec. 3i 798.7 -157.9 81.7 233.5 355.4 2.2 68 0 582 9 — 126.6 81.3 251.3 9 9 I945.—Dec 31 464.5 -194.9 74.9 207.0 337.9 2.1 57.3 484.3 -143.0 87.6 26.8 8.8 1947—Dec 31 74 5 300 9 -203 8 24.7 108 7 350.9 -15 0 43 1 308 7 — 139 8 84 2 36 8 11 0 1948—Dec 31 82.1 101.2 -194.7 -58.1 29.5 311.0 -15.0 45.7 118.4 -132.3 94.4 13.6 7.2 I949—june 30 9.7 92.5 -188.7 -58.5 16.5 342.8 — 14.4 45 4 143 1 — 168 6 99 7 10.0 8 3 July 31 21.7 101.5 -186.5 -58.8 15.2 346.0 -13.5 45.2 147.6 -162.5 104.9 3.2 8.3 Aug 31 117 0 102 5 — 185 2 -60.7 14 2 349 5 — 13 5 45 1 149 5 — 163 0 104 2 3 4 8 4 Sept. 30 166.9 99.9 -182.1 -61.7 13.2 348.1 -12.9 46 2 150.8 -165 0 102.8 3 2 8.1 Oct. 31 167.9 96.5 -179.9 -63.0 10.1 348.7 -12.7 46.5 149.7 -168.1 101.0 5.8 8.0 Nov. 30 169 1 88 0 —176.6 -63.8 5.7 348.9 — 13.5 46 3 147 2 — 172 3 99 1 6 8 7 2 Dec. 31 169.1 89.3 -173.9 -64.9 4.0 355.2 -13.4 47.9 154.9 -181.3 96.9 11.5 7.4 1950—jan 31 169.6 94.1 -166.2 -65.7 2.8 363.7 -14.7 47.4 167.2 -184.6 93.6 10.6 7.3 Feb. 28 173.2 136 8 —163.1 -66.7 1.1 359.1 — 14.9 49 5 165 0 — 136 1 90 0 10 4 7 5 Mar. 31 192.1 187.2 -158.8 -69.1 .9 355.9 -14.8 60 4 174.5 -101.9 95.1 11.2 8.3 Apr 30P 218.4 205.2 -158.2 -69.4 -1.4 357.8 -15.1 65.4 179.1 -76.6 96.9 -2.8 8.7 May 31 P 231.0 221.3 -147.8 -68.6 -3.0 364.4 -20.5 64.1 188.6 -74.8 102.6 -3.5 8.5 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) United Neth- Switz- From Jan. 2, 1935, through— Total K d i o n m g- France la e n r d - s la e n r- d 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 a e t r i i n ca Asia o A th l e l r 1944—Dec 31 126.3 18.5 23.1 22.3 23.0 .3 10.4 97.7 16.2 5.1 5.6 1.8 1945—Dec 31 144.1 19.8 23.4 26 0 30 3 .4 13 6 113 6 19 5 5 9 3 8 1 3 1946—Dec. 31 153.7 19.2 20.5 17.5 39.6 .4 14.7 112.0 21.5 13.4 4.8 2.0 1947—Dec 31 142.4 18.2 19.1 12.7 38.2 .3 14.2 102.7 19.6 12.9 6.6 .7 1948—Dec 31 123.1 17.0 16.7 9.3 27.5 .4 11,0 81.9 19.6 14 0 7 0 6 I949—june 30 116 3 17.2 16.4 10.0 23.5 .5 11 1 78 7 18 9 10 5 7 4 8 July 31 119.5 17.1 16.1 9.6 23.2 .5 10.9 77.3 20.5 13.5 7.3 .8 Aug 31 121.2 17.1 16.1 9.3 22.8 .6 11.7 77.5 20.9 14.9 7.2 .6 Sept. 30 127.0 17.7 16.0 9.6 24 4 6 11 4 79 7 21.0 18 8 6 8 7 Oct. 31... 126.8 17.5 16.2 10.3 27.0 .5 11.4 83.0 19.9 16.4 6.9 .7 Nov. 30 121.3 17.1 16.2 10.6 25 3 .6 11 4 81.2 18 3 14 5 6 6 7 Dec. 31 123.7 17.1 16.2 9.6 28.4 .6 11.1 82.9 20.5 12.7 6.8 .8 1950—jan 31 123.0 16.3 15.8 11.0 27.8 .6 11.1 82.5 21.8 11.2 6.7 8 Feb. 28. 122.8 17.1 15.5 11.1 26.8 .6 10.7 81.8 17.7 15.7 6.9 .8 Mar. 31 130.0 17.0 15.3 11.3 27.8 .6 10.4 82.4 21.2 18.5 7.2 .8 Apr. 3QP . .... ....... 130.6 17.3 15.5 11.1 29.0 .5 10.4 83 7 21 5 16 3 8 3 7 May 31 v 1125.2 16.7 16.1 11.6 27.0 .5 10.3 82.2 21.6 12.3 8.4 .8 SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRIES [Amounts outstanding, in millions of dollars] LIABILITIES TO FOREIGNERS Total foreign In- countries 2 Date t t i e i n o r s n n t a a i- - l Official 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 la w e n r i d - tz s - 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 - Am La e t r i i n ca Asia o A th l e l r tutions and Official private 1944—Dec. 31 5,596.8 3,335.2 865.7 401.2 209.7 239.3 27.3 774.5 2,517.8 926.5 909.3 1,069.2 174.0 1945—Dec. 31. 6,883.1 4,179.3 707.7 310.0 281.6 304.2 70.4 909.1 2,583.0 1,522.2 1,046.41,549.7 181.8 1946—Dec. 31... 473.7 6,006.5 3,043.9 458.9 245.9 224.9 372.6 267.9 850.5 2,420.7 931.8 1,104.81,316.4 232.8 1947—Dec. 31... 2,262.0 4,854.4 1,832.1 326.2 167.7 143.3 446.4 153.1 739.8 1,976.7 409.6 1,216.61,057.9 193.7 1948—Dec. 31... 1,864.3 5,853.7 2,836.3 546.3 192.8 122.8 538.9 333.5 738.1 2,472.4 775.2 1,287.01,151.8 167.4 1949—june 30... 1,894.6 5,743.0 2,725.3 410.5 194.3 120.9 571.5 384.3 677.6 2,359.1 779.7 1,338.5 1,081.3 184.4 July 31... 1,879.5 5,602.9 2,574.9 351.6 164.1 130.2 544.7 387.3 677 A 2,255.3 748.7 1,352.31,068.9 177.6 Aug. 31... 1,798.7 5,607.7 2,576.6 352.4 150.4 118.7 551.9 401.3 679.6 2,254.3 742.9 1,367.91,077.6 165.0 Sept. 30... 1,742.1 5,671.2 2,587.9 438.9 166.9 165.7 558.7 285.9 664.2 2,280.3 827.5 1,319.31,059.5 184.5 Oct. 31... 1,712.3 5,849.4 2,735.9 512.6 183.9 182.9 576.8 286.6 670.7 2,413.6 810.8 1,416.51,016.5 192.1 Nov. 30... 1,675.0 5,874.3 2,821.4 556.7 183.1 162.9 567.6 295.7 675.3 2,441.3 824.9 1,439.0 984.5 184.6 Dec. 31... 1,657.8 5,960.2 2,908.1 574.4 171.6 170.5 576.9 303.6 717.0 2,513.9 869.1 1,436.7 961.0 179.5 1950—Jan. 31... 1,742.9 5,980.1 2,863.8 609.5 152.3 177.3 507.4 296.7 739.0 2,482.3 919.4 1,386.4 982.2 209.8 Feb. 28... 1,727.0 6,017.9 2,900.0 633.2 159.4 169.1 510.6 302.6 767.2 2,542.1 873.2 1,388.7 1,027.3 186.6 Mar. 31... 1,709.2 6,051.2 2,826.1 663.2 157.0 177.6 575.7 266.0 758.1 2,597.4 857.4 1,391.11,026.9 178.4 Apr. 30P. . 1,682.4 6,234.2 2,877.3 743.8 160.1 195.5 597.8 256.8 772.3 2,726.3 844.9 1,405.5 1,093.6 163.9 May 31*.. 1,683.3 6,349.0 2,996.0 801.7 186.2 219.5 599.8 273.5 771.8 2,852.5 847.5 1,370.6 1,106.9 171.5 P Preliminary. 1 Amounts outstanding (in millions of dollars): foreign brokerage balances in U. S., 74.5; U. S. brokerage balances abroad, 26.2. 2 Country breakdown is for "Official and private." 3 Beginning January 1950, excludes Bank for International Settlements, included in "International institutions" as of that date. 1078 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 LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRIES—Continued [Amounts outstanding, in millions of dollars] LIABILITIES TO FOREIGNERS—SUPPLEMENTARY DATA Other Europe Date E O u t r h o e p r e A tr u ia s- g B iu e m l- C v o z a s e k lo c i h - a - m D a en rk - l F a i n n d - m G a e n r- y1Greece N w o a r y - l P an o d - t P u o g r a - l m R a u n - ia Spain S d w en e- USSR Y sl u av g i o a - ot A h l e l r2 1944—Dec. 31.. 774.5 124.3 14.8 7.1 6.S 48.7 220.8 54.5 9.5 43.4 152.1 16.1 5.7 70.7 1945—Dec. 31. .909.1 185.0 25.9 5.5 7.0 70.8 216.1 47.9 9.3 31.7 210.1 28.0 5.7 66.0 1946—Dec. 31.. 850.5 159.5 66.5 22.2 7.1 49.3 123.5 39.0 8.9 16.4 172.6 60.5 12.4 112.5 1 19 9 4 4 8 7 — — D D e e c c . # 3 3 1 1 . . m 7 7 3 3 9 8 .1 8 1 1 2 2 4 8 . . 9 7 4 52 4 .7 8 3 1 0 9 . . 5 1 1 8 7 9 8 . . 5 9 3 21 4 . . 1 7 5 7 6 7 . . 2 7 3 47 7 .7 1 8 7 .0 7 1 1 2 3 .6 8 5 4 8 9 .0 6 2 7 1 3 .3 7 1 1 9 2 .9 1 1 1 3 1 8 9 .3 2 1949—June 30. .677.6 124.0 32.8 18.2 160.0 28.5 69.0 33.0 6 9 9 8 55 8 12 4 6 8 120 4 July 31 677 4 117 5 33 7 17 4 169 6 27 0 65 9 33 8 6 8 11 3 57 9 8 7 5 3 122 5 Aug. 31 679 6 142 2 32 0 17.7 150.2 25.0 62.4 30 3 6 8 8 2 61 0 10 5 6 4 126 9 Sept. 30. .664.2 126.7 31.8 17.1 147.8 24.7 60.8 31.3 7 1 9 6 62 0 11 3 9 1 125 1 Oct. 31 670 7 125 3 31 8 15.5 145 2 23 3 62 6 33 9 6 7 10 8 69 2 11 9 13 6 120 9 Nov. 30 675 3 117 7 35.4 24.0 141.6 23.7 66.4 33 9 6 7 10 7 78 6 8 2 10 4 118 0 Dec. 31. . 717.0 119.9 38.0 25.1 149.4 29 6 69.4 38.1 6.7 15.7 90.1 10.2 7.6 117.4 1950—Jan. 31.. 739.0 44.3 123.9 17.7 35.2 23.8 149.7 30.3 76.4 6.0 40.0 6.5 14.0 96.1 9.4 7.1 58.5 Feb. 28. .767.2 44.0 133.3 17.3 33.2 20.6 164.6 31.6 82.2 6.7 39.2 6.4 11.3 101.9 11.1 5.8 57.9 Mar. 31. . 758.1 42.9 118.5 12.3 29.3 19.0 180.2 32.4 79.3 6.1 35.8 6.1 11.5 106.1 13.9 6.6 58.2 Apr. 30*\ 772.3 39.3 120.8 13.3 33.0 20.4 184.9 35.1 82.4 6.3 35.0 6.1 10.5 107.6 15.7 7.0 54.9 May 31*-. 771.8 39.2 107.7 13.4 32 .0 18.2 199.7 36.9 76.9 4.9 36.9 6.2 10.1 109.2 16.0 6.2 58.5 Latin America Neth- Do- er- Date A L m i a c t a e in r- A t r i g n e a n- l B iv o ia - Brazil Chile l C o b m i o a - - Cuba m p i R c u i a e b n n - - - G m u a a l t a e- M ic e o x- I l W n a a d n n e i d d s e s t s Peru l P p i R c u a e n b o - - - f v S a E a d l l o - r g U u r a u y - V zu e e n l e a - A O L i m c a th a t e i e r n 3 - r lic Suri- ama nam 1944—Dec. 31. 909.3 93.9 17.7 140.8 55.0 83 6 139.3 83 1 36 0 27 7 69 1 31 5 131.6 1945—Dec. 31. 1,046.4 77.3 14 5 195.1 66 3 79.2 128.3 116.4 43.9 88.7 49.7 158.8 1946—Dec. 31. 1,104.8 112.6 14 0 174 0 50.7 57.8 153.5 152.2 16a 40.9 77.2 74.0 181.8 1947—Dec. 31. 1.216.6 236.2 17.8 104 7 46.3 46 1 234.7 139 2 14 9 41 8 70 3 78.0 186.5 1948—Dec. 31. 1,287.0 215.8 17.1 123.7 55.6 54.0 219.4 146 7 24 3 52 6 71 8 121.7 184.1 1949—June 30. 1,338.5 229.8 14.8 115.9 56.3 51.9 167.7 162 6 24 1 52 9 70 0 187.5 204.9 July 31. 1,352.3 229.4 14.9 118.1 65.1 59.8 174.8 163.3 24.3 55.9 63.1 162.0 221.6 Aug. 31. 1.367.9 228.6 14.4 128.0 57.9 49.0 187.7 175 5 29 1 58 3 64 6 161.2 213.6 Sept. 30. 1,319.3 221.7 16.2 145.0 58.1 51.0 179.6 184.2 27.8 59.4 69.1 99.4 207.9 Oct. 31. 1.416.5 227.7 15.7 165.0 59.5 57.6 181.7 185.7 30.5 61.4 72.7 160.4 198.6 Nov. 30. 1,439.0 233.7 13.2 216.9 54.9 70.1 178.4 195 0 23 5 53 3 74 2 129.2 196.6 Dec. 31. 1,436.7 201.1 13.5 192.8 60.9 85.9 164.2 214.6 25.9 52.8 74.3 143.2 207.4 1950—Jan. 31. 1,386.4 210.2 13.9 164.4 57.5 97.3 169.7 '35!8' 25^8 184.1 26.5 48.7 73.8 35.7 62.3 117.4 63.4 Feb. 28. 1,388.7 219.3 13.0 143.8 70.1 90.6 176.9 36.3 26.7 179.7 25.4 46.4 77.7 42.6 57.4 115.2 67.8 Mar. 31. 1,391.1 221.2 13.1 141.1 70.4 80.0 185.4 38.8 27.6 175.7 26.5 51.6 81.4 42.6 58.0 110.1 67.5 Apr. 3QP1,405.5 227.0 12.7 121.6 73.2 70.1 212.1 39.6 28.2 166.4 26.7 47.1 81.3 40.1 59.0 132.2 68.2 May 31 P1,370.6 233.5 14.1 99.2 68.6 53.1 224.2 40.9 26.6 160.2 28.4 46.3 80.8 36.9 67.0 123 .4 67.4 Asia and All Other Date Asia C M c a r h h n i a i u a d n n - a - H K o o n n g g India I n n e d s o ia - Iran IsraelJapan p i P p u R p h b e i i l n l - i - c e T la h n a d i- T k u e r y - O A t s h ia e * r o A th l e l r t A ra u l s ia - C g B o i e a n l n g - o A E E t a n i g g n a g y y d n l p p o t - - A S U o f n o r u i i f o c th a n Others Sudan 1944—Dec. 31. 1,069.2 427.3 22.9 22.1 110.5 4.0 365.8 23.7 92.9 174.0 52.9 7.3 8.3 105.4 1945—Dec 31 1 549 7 582 3 27 4 33 4113 7 4.1 629.1 52.5 107 2 181 8 28 9 18 9 6 4 127 7 1946—Dec. 31. 1,316.4 431.9 44.9 43.5 127.1 16.6 446.6 54.7 151.0 232.8 45.5 20.8 47.2 119.3 1947 DPC 31 1 057 9 229 9 39 8 62 4 69 3 31 3 488 6 37 6 99 0 193 7 30 6 25 0 46 4 91 8 1948—Dec. 31. 1,151.8 216.2 51.1 51.8 41.5 81.4 488.3 17.5 204.0 167.4 22.2 27.7 15.8 101.6 1949—Tune 30 1 081 3 119 2 67 7 60 9 36 1 141.6 387.6 15 3 252.9 184.4 19 7 54 1 9 1 101 5 July 31. 1,068.9 125.3 78.9 54.2 27.1 144.2 367.3 18.2 253.6 177.6 22.3 49.6 7.3 98.4 Aug. 31. 1 077 6 123 7 80 9 69 1 29 0 152 8 363 7 13 6 244 8 165 0 20 2 49 9 6 7 88 2 Sept. 30. l!059.5 124.1 82.3 59.9 27.2 161.5 348.4 15.1 241.0 184.5 31.7 58.7 5'.8 88.4 Oct 31 1 016 5 116 3 81 5 52 6 20 5 189.5 334.1 12 1 209 9 192 1 44 0 60 2 5 7 82 2 Nov 30 984 5 113 4 83 3 56 4 17 8 204 8 306 3 10 0 192 4 184 6 39 4 53 3 6 9 79 9 Dec. 31. 961.0 110.6 83.9 63.3 15.7 214.6 297.3 9.8 165.7 179.5 32.4 61.6 6.0 79.5 1950—Jan. 31. 982.2 110.1 89.9 69.5 12.2 16.8 21.0238.8 286.1 24.3 12.0 101.5 209.8 29.8 27.2 72.8 22.9 57.1 Feb. 28. 1,027.3 112.3 90.6 69.5 29.2 16.4 27.3252.2 289.4 22.6 14.4 103.5 186.6 25.1 28.3 58.4 21.3 53.6 Mar. 31. 1,026.9 103.5 88.8 61.8 27.6 17.5 25.0276.5 288.2 23.5 10.4 104.2 178.4 20.5 30.0 57.3 15.8 54.7 Apr. 30P 1,093.6 98.5 96.4 63.3 36.4 16.5 21.8329.4 294.4 27.4 10.2 99.3 163.9 17.5 31.8 56.2 6.6 51.8 May 31P 1,106.9 99.1 102.0 59.5 35.9 14.8 19.7330.7 299.5 29.0 10.6 106.0 171.5 18.4 33.6 57.0 9.6 53.0 p Preliminary. r Revised. 1 Beginning March 1947, figures include balances in accounts opened by occupation authorities for foreign trade purposes, 2 Beginning January 1950, excludes Austria, Czechoslovakia, and Poland, reported separately as of that date. 3 Beginning January 1950, excludes Dominican Republic, Guatemala, El Salvador, and Uruguay, reported separately as of that date. 4 Beginning January 1948, includes Pakistan, Burma, and Ceylon, previously included with India. Beginning January 1950, excludes Iran, Israel, and Thailand, reported separately as of that date. 5 Beginning January 1950, excludes Belgian Congo, reported separately as of that date. AUGUST 1950 1079 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTERNATIONAL CAPITAL TRANSACTIONS OF THE UNITED STATES—Continued SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRIES—Continued [Amounts outstanding, in millions of dollars] CLAIMS ON FOREIGNERS 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- 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 i a c t a e in r- Asia o A th l e l r 1944—£>ec# 31 329.7 25 9 1.4 .3 1.3 3 78.3 107.5 28.1 131.0 51.4 11 7 1945—£>ec 3] 392.8 25.4 1.1 36.3 2.9 3 74.6 140 7 53.3 158.9 29.9 9.9 1946—D^c. 31. . 708 3 47 7 5 7 151 0 9 8 16 0 82 8 312 9 52 2 226 8 99 2 17 2 1947—DeCt 31 948.9 29 2 23 4 49 1 7.0 21 ? 118.9 248.6 27 5 514 3 127 0 31 S 194g—Dec 31 1,018.7 24.5 119.0 51.4 6.9 15.8 106.3 323.8 39.8 516.6 118.8 19.7 1949—June 30 860.5 17 0 86.9 4 7 6.3 27.1 95.6 237 6 33.9 423.1 147 0 18 8 July 3* 848.0 20.5 85.0 4.2 6.4 26.4 91 9 234 3 32.6 418.8 143.2 19.1 Aug. 31 797.5 14 9 69 3 6 0 6.2 21 1 82.2 199.6 34 4 410 3 136 6 16 6 Sept 30 819.5 56.8 68.2 6.9 3.6 15.3 84.9 235.7 35 4 403.9 126.7 17.9 Oct 31 850 5 66.4 68.1 6.1 4.0 16.0 88.7 249.2 3-1.8 4.18.2 133.5 17.8 Nov. 30 846 7 54 8 52.2 6 3 4.6 18.8 98.2 234.9 33.0 425 9 135 2 17 6 Dec. 31 827.9 37.2 51.8 5.2 3.8 22 6 98.5 219.2 37.6 411.1 139.7 20.4 1950—yan 3] *724 8 3" 6 51 5 2 7 5 7 20 7 165 0 U78.2 40 2 347 3 129 0 30 1 Feb. 25 670.6 24.3 36.0 4.4 5.5 23.3 64.4 158.0 42.4 311 .4 124.0 34.8 Mar. 3! .... 648.7 23.7 35.4 4 3 7.8 19.6 63.1 153.9 37.5 303.5 • 115 7 38 1 Apr 3QP , , 630 3 23 3 35 9 3 7 6 2 20 2 64 0 153.3 35 5 295 7 106 2 39 6 TVTav 31 P 612.0 27.3 21 .0 4.5 7.3 24.5 62.8 .147.4 32.7 290.5 100.7 40.7 CLAIMS ON FOREIGNERS—SUPPLEMENTARY DATA Other Europe Date E O u t r h o e p r e A tr u i s a - g B iu e m l- C v o z a s e k lo c i h - a - m De a n rk - l F a i n n d - Ger- Greece Nor- l P an o d - t P u o g r a - l Ru- Spain S d w en e- USSR s Y la u v g i o a - ot A h l e l r2 1944—Dec. 31. 78.3 .7 33.9 .6 35.1 1.8 .2 5.2 1945—Dec. 31. 74.6 .6 33.9 .7 31.6 .5 1.6 .9 4.8 1946—Dec. 31. 82.8 7 5 .5 6.2 30.4 12.4 3.3 1.0 7.2 4.9 9.5 1947—Dec. 31.118.9 15.0 2.2 8.0 30.5 10.6 9.2 1.1 .9 5.4 () 35.9 1948—Dec. 31.1.06.3 21.4 .6 3.4 30.5 1.2 8.4 .7 2.9 1,4 6.0 29.8 1949—June 30. 95.6 18.9 1.1 4.8 29.8 1.0 8.6 12.0 4.2 1.5 13.3 Tuly 31. 91.9 17.9 4.9 29.9 1.0 8.1 10.7 3.3 1.5 13.2 Aug. 31. 82.2 13.6 1.0 5.5 29.7 .7 7.9 8.2 2.5 1.4 11 .1 Sept. 30. 84.9 14.1 .7 6.6 30.3 8.0 7.1 3.8 1.8 11.2 Oct. 31. 88.7 16.1 .7 8 6 30.3 7.3 7.0 3.8 2.1 11.5 Nov. 30. , 98.2 17.6 .7 9.2 30.0 7.5 7.0 6.1 2.1 16.7 Dec. 31., 98.5 19.3 .4 8.2 30.0 7.4 7.0 7.0 2.3 () ( 15.6 1950—Jan. 31. . i .2 15.6 (J) .5 4.9 l25.5 1.0 (3) 6.7 3.4 (3) 4.8 . Feb. 28., 64." 4 .2 16.3 .5 3.5 25.6 1.1 7.9 3.1 (3) '.1 5.2 Mar. 31., 63.1 17.7 .1 .5 2.4 25.3 1.2 () 6.6 2.4 (3) .7 4.4 Apr. 30*. 64.0 16.2 .1 .6 2.1 25.5 1.3 () 7.7 2.4 (3) 2.5 4.4 May 31?'. 62.8 16.3 .3 1.1 2.4 25.2 1.2 (3) 4.4 2.8 CO 3.2 4.6 Latin America Neth- Date A L i m a c t a e in r- A t r i g n e a n- l B iv o i - a Brazil Chile l C o b m i o a - - Cuba m p i D R c u i a o e b n n - - - - G m u a a l t a e- M ic e o x- l I W a a n e n n d r e d d - i s e s t s Peru l p P a i R c u m a e b n o a - - - f v S a E a d l l o - r g U u r a u y - V zu e e n l e a - O A L i a m t c h a t e i e n * r r lic Surinam. 1944—Dec. 33 . 131 0 3 I 1.8 25.3 9.0 15 5 47 4 8.6 .3 1.2 .8 5 1 12 9 1945—Dec, 31. . 158.9 21.0 1.3 24.7 6.6 16.8 33.3 11.0 .5 1.9 1.1 6.1 34.7 1946—Dec 31 226 8 41 8 2 3 49 8 14 6 26 4 25 7 25 5 .8 3 7 1 3 8 7 26 2 1947—j}ec 31 514 3 65 2 2 0 165.8 27.8 32 6 108 6 52 2 1,1 4.3 4.7 15 3 34 5 194g—£)ec 31 SI6 6 72 4 2 7 165 4 15 2 32 6 83 1 73 8 1 5 4 4 4 6 26 0 34 7 1949—Tune 30 423 1 57.6 3.0 155.0 12.2 37.7 21.0 68.3 1.1 6.1 4.5 23 7 33 0 July 31 -I-8 8 55 5 ? 7 158 9 10 9 32 1 20 3 67 2 1 1 7 9 4 5 23 0 34 5 Auc. 31 410 3 56 1 2 2 160' 5 11 8 24 4 17 6 68 0 1.1 6 9 4.6 22 4 34 5 Sept. 30. . 403 9 54- 4 2.3 162.2 11.4 22.6 17.5 64 1 1.1 6.4 4.6 22 3 34 9 Oct. 31.. 4-18.2 55.3 2.5 165.1 12.0 22.6 20.0 66.4 3.0 6.3 5.4 23.0 36.8 Nov. 30 425 9 54 1 1 9 161 9 11 7 2? 3 26 4 72 0 1.2 5 8 5 3 23 6 39 6 Dec. 31 .. 411.1 53.6 2.3 136.9 15.5 21.1 27.5 73.0 1.3 5.8 5.3 25.6 43.1 1950—Jan. 31.. 347.3 51 .3 5.2 99.2 14.1 19.9 27.1 1.8 2.4 50.3 1.1 6.5 4.3 6.5 9.0 25.3 23.3 Feb. 28.. 311.4 47.8 5.7 81.3 9.3 21.0 21.5 1.7 2.7 46.3 l.l 6.6 4.6 5.3 8.1 26.0 22.3 Mar. 31.. 303.5 44.7 6.3 75.2 7.9 24.1 17.6 1.7 2.1 48.1 •1.0 6.2 4.9 4.2 13.2 24.6 21.6 Apr. 30P. 295. 7 46.5 6.5 67.4 5.6 26.8 17.1 1.7 2.2 46.4 i.l 6.8 4.8 3.8 10.5 26.5 22.0 Mav 31 P. 290.5 43.1 7. 7 58.8 5.2 31.8 21 .4 1.6 2.2 44.9 1.1 8.5 5.0 3.8 8.0 26.3 21.0 p Preliminary. ' • . 1 Figure not strictly comparable with the corresponding figures'for preceding months due. to write-off of claim on Germany amounting to $6,121,000. The cumulative figures in Tables 1, 2, and 4 of "Net Capital Movement to United States" have been.adjusted to exclude the unreal movement introduced by this change. 2 Beginning January 1950, excludes Austria, Czechoslovakia, and Poland, reported separately as of that date, s Less than $50,000. 4 Beginning January 1950, excludes Dominican Republic, Guatemala, El Salvador, and Uruguay, reported separately as of that date. 1080 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 LIABILITIES TO AND CLAIMS OiN FOREIGNERS REPORTED SY BANKS IN THE UNITED STATES, BY COUNTRIES—Continued : . [Amounts outstanding, in millions of dollars] CLAIMS ON FOREIGNERS—SUPPLEMENTARY DATA Asia and All Other China Egypt Phil- Bel- and Union Date Asia Man- H K o o n n g g India I n n e d s o ia - Iran IsraelJapan in R p e i - ne T la h n a d i- T k u ey r- O A t s h ia e * r o A th l e l r t A ra u l s i - a C g o ia n n go A E n g g y l p o - - So o u f th Other2 ria public S t u ia d n an Africa 1944—Dec. 31.. 51.4 1.5 .9 2-2.3 1.5 .5 13.8 1.8 8.9 11.7 .6 .2 9.7 1.2 1945—Dec. 31.. 29.9 1.0 .8 7.5 1.4 .5 13.8 2.0 2.8 9.9 1.7 .3 4.7 3.3 1946—Dec. 31. . 99.2 53.9 5.9 12.0 . 1.0 .2 20.2 1.4 4.6 17.2 3.4 .4 10.1 3.3 1947—Dec. 3i _• 127.0 40.8 2.6 29.6 • 5 9 27 4 17 7 7 5 31 .5 9.0 .i 14.4 8.0 1948—Dec. 31.. 118.8 24.2 3.4 20.4 1.9 15.9 37.3 1.4 14.3 19.7 4.7 .4 7.9 6.8 1949—Tune 30. . 147.0 18.4. 3.2 21.0 1.1 39.4 30.2 .9 33.0 18.8 5.4 .4 4.6 8.4 "filly 3\.. 14-3.2 16.8 3.7 20.0 1.2 33.8 25.3 11.7 30.8 19.1 5.0 .6 4.2 9.2 Aug. 3i . . 136.6 17.8 3.4 19.7 .5 21 8 27 5 14 5 31 4 16.6 4.5 .2 3.6 8.3 Sept. 30... 126.7 18.0 3.4 16.8 .4 9.6 24.6 19.4 34.4 17.9 4.6 .4 4.0 8.9 Oct. 31.. 133.5 16.5 3.8 18.8 .4 10.1 25.5 14.3 44.1 17.8 4.8 .5 3.8 8.8 Nov. 30. . 135.2 16.3 4.2 17.0 .2 9.5 25.9 15.7 46.5 17.6 5.4 .6 3.6 8.0 Dec. 31 139 7 16 6 3 7 17 4 2 14 1 23.2 14 3 50.3 20 4 7 9 2 4 5 7 7 1950—Tan. 31.. 129.0 17.0 4.1 16.6 .2 13.6 11.8 18.'1 22.8 "lA 10.5 12.0 30.1 10.4 "3.*6* .2 11.3 4.6 Feb. 28.. 124.0 15.1 4.2 17.7 .1 13.8 12.5 17.9 22.4 1.9 9.9 8.5 34.8 15.5 3.5 .3 11.2 4.3 Mar. 31 .. 115.7 19.4 4.3 18.9 .2 13.6 13.3 7.7 22.0 1.2 5.9 9.3 38.1 18.9 3.5 .4 11.3 4.0 Apr. 30P. 106.2 23.4 4.1 18.1 (3) 13.5 12.0 1.9 19.7 .9 4.8 7.9 39.6 20.1 3.7 .3 12.1 3.5 May 31 P. 100.7 19.2 4.1 24.0 12.5 13.3 .9 11.4 .7 -.7 10.9 40.7 20.8 3.6 1 .1 12.3 3.9 P Preliminary. 1 Beginning January 1948, includes Pakistan, Burma, and Ceylon, previously included with* India.- Beginning January 1950, excludes Iran, Israel, and Thailand, reported separately as of that date. 2 Beginning January 1950, excludes Belgian Congo, reported separately as of that date. » Less than §50,000. GOLD PRODUCTION OUTSIDE U. S. S. R. [In millions of dollars] Production reported monthly Estimated Year or world Africa North and South America Other production Total month U o . u S t . s S i . d R e .i r m e o p n or th te l d y A So fr u ic th a R de h s o i - a A W fr e ic s a t 2 C B o e n lg g i o a 3 n S U t n a i t t e e s d 1 C a a d n a - M ic e o x- Co b l i o a m- Chile r N ag ic u a a - 5 Au li s a tra- India3 $1 =755/2i grainsof gold s/io fine: i. e., an omce of fine gold =$35. 1941 1 ,265 6 1,110 4 504 3 27 8 32 4 19 6 209 2 187.1 28 0 23 0 9 3 7 5 52 4 10.0 1942 1,125.7 982.1 494.4 26.6 29.2 18.0 131.0 169.4 28.0 20.9 6.4 8.6 40.4 9.1 871.5 774.1 448.2 23.0 19.7 15.8 48.8 127.8 22.1 19.8 6.1 7.7 26.3 8.8 1944 784.0 701.5 429 8 20 7 18 4 12.7 35.8 102.3 17 8 19.4 7.1 7.9 23.0 6.6 1945 738.5 683.0 427.9 19.9 18.9 12.1 32.5 94.4 17.5 17.7 6.3 7.0 23.0 5.9 1946 752.5 697.0 417.6 19.1 20.5 11.6 51.2 99.1 14.7 15.3 8.1 6.4 28.9 4.6 1947 766.5 705.5 392 0 18.3 19.3 10.8 75.8 107.5 16.3 13.4 5.9 7.4 32.8 6.1 1948 791.0 728.1 405.5 18.0 23.4 11.1 70.9 123.5 12.9 11 .7 5.7 7.8 31.2 6.5 1949 "7=53 0 409.7 18.5 23.1 12.9 '67.3 143.9 14.2 12.6 6.3 7.7 31.3 5.7 1949—?vfav ''62 9 34 3 1 6 1 9 1.1 r5 4 11.6 1 8 1.0 .5 .6 2 5 .6 June 34.8 1.5 1.9 1.1 r5.3 12.0 1.6 \ 0 .4 .6 3.7 .6 T •V u u g iv .... r r 6 6 2 6 ' . 0 9 3 3 5 5 7 5 1 1 6 6 1 1 9 8 1 1 .1 2 r r 6 S . 3 5 1 1 2 1 .4 6 1 1 .0 4 0 1 .5 6 . .7 6 2 2 . . 5 3 . .6 6 Sept »T>5.2 34.8 1.5 1.9 1.1 '6.0 12.7 1.6 L.O .6 .7 2.6 .5 Oct. r65 2 34 7 1 5 1 9 1.0 12.8 .9 0 .5 .6 2.7 .5 Nov 34.0 1.5 2.0 1.1 •7.2 12.7 1.9 ..1 .6 .7 2.9 .4 Dec. r63 5 34 0 1 5 2 0 1.1 r6 4 13.1 .8 6 .5 .6 2.6 .4 £950—jan 34.2 1.5 2.0 1.1 5.9 12.4 .4 .6 .6 2.3 .5 Feb. 32 0 1.4 2 0 1 .0 5.5 12.2 ? .7 2.3 .5 Mar 35 1 1 5 1 9 1 1 6 1 13 4 .7 ' 2.3 .5 Apr 33.3 1.5 1.9 1.0 6.7 12.9 J i . .7 2.1 .6 Mav 35 5 2.0 1.0 6.8 6 .5 r Revised. 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; and 1938, 180 million. 1 Estimates of United States Bureau of Mines. • . ; ' 2 Beginning .1942, figures reported by American Bureau of Metal Statistics. Beginning 1944, they are for Gold Coast only. 3 Reported by American Bureau of Metal Statistics. 4 Includes Philippine production received in United States through 1945. ' Yearly figures are estimates of United States Mint. Monthly figures are estimates of American Bureau of Metal Statistics, those for 1949 having been revised by subtracting from each monthly figure $217,251 so that the aggregate for the year is equal to the yearly estimate compiled by the United States .Mint. 5 Gold exports, reported by the Banco Nacional de Nicaragua, which states that they represent approximately 90 per cent of total production. NOTE.—For explanation of table and sources, see BULLETIN for June 1948, p. 731; 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. AUGUST 1950 1081 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORTED GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS [In millions of dollars] United States End of month Treas- Ar- g B iu el m - Brazil Canada3 Chile lo C m o b - ia 4 Cuba C v z s a e l k o c - h ia o- m D a en rk - Egypt France ury Total i 1945—Dec 20,065 20,083 1,197 716 354 361 82 127 191 61 38 52 1,090 1946—Dec 20,529 20,706 1,072 735 354 543 65 145 226 61 38 53 796 1947—Dec. 22,754 22,868 322 597 354 294 45 83 279 32 53 548 1948—Dec 24,244 24.399 624 317 408 43 51 289 32 53 548 1949—July 24,520 24,705 720 317 436 44 47 289 32 53 523 Aug. 24,608 24,771 718 317 448 44 48 289 32 53 523 Sept 24,602 24,728 715 317 460 43 49 299 32 53 523 Oct 24,584 24,688 720 317 470 43 50 299 32 53 523 Nov 24,479 24,626 709 317 484 43 51 299 32 53 523 Dec 24,427 24,563 698 317 496 40 52 299 32 53 523 1950—Jan 24,395 24,507 679 317 507 40 53 299 32 53 523 Feb 24,345 24,456 679 317 509 40 64 299 32 53 523 Mar 24,246 24,360 682 317 511 40 65 299 32 53 523 Apr 24,247 24,350 679 317 513 40 66 299 32 53 523 May. 24,231 24,340 678 317 515 40 299 31 53 523 June 24,231 24,331 663 31 523 End of month H ga u r n y - India Iran s Italy Java Mexico N l e a t n h d e s r- Ze N a e la w nd N w o a r y - Peru P g o a r l tu e - Ruma- A S f o r u i t c h a Spain 1945—Dec.. 274 131 24 294 270 23 80 28 269 914 110 1946—Dec.. 24 274 127 28 7 201 181 265 23 91 24 245 939 111 1947—Dec.. 34 274 142 58 7 180 100 231 23 72 20 193 762 111 1948—Dec.. 35 256 140 96 166 23 52 20 158 183 111 1949—July. . 36 247 140 122 178 166 28 52 20 149 85 Aug.. 37 247 140 133 178 161 28 52 20 135 85 Sept.. 38 247 140 252 178 161 29 51 20 121 85 Oct.,. 40 247 140 252 178 161 30 51 20 119 85 Nov.. 40 247 140 252 178 195 31 51 28 120 85 Dec. 41 247 140 252 178 195 32 51 28 128 85 1950—Jan... 41 247 140 252 178 229 32 '51 28 132 80 Feb.. 41 247 140 252 178 229 33 50 28 146 80 Mar.. 247 252 178 229 33 50 28 166 80 Apr.. 247 252 178 229 34 48 28 173 61 May. 247 252 178 229 50 28 178 61 June. 252 178 229 28 61 End of month S d w e e n - S l w a e n r i - t d z- T k u e r y - g U u r a u y - V zu e e n l e a - t c o r o t i 1 h e u 6 s e n r - 8 n M a I F t n t u a o i t o r n e n y n r d e - a - l f S t m t o B e i e r o r e a t n n t n n I l a a t k e n s - l - - E G n o d v o e f r n m m o e n n t t h g p o r ld U e K v n i i r o i n e t u g e s s d - e rv fi e g s u F r n e ra s o n t c i e nclu B de e d lg iu io m dom 1945—Dec 482 1,342 241 195 202 192 39 1946—Dec 381 1,430 237 200 215 193 15 32 1945—Dec 12,476 2 457 2 17 1947—Dec 105 1,356 170 175 215 195 1,356 30 1946—Dec.. . . 12,696 1948—Dec 81 1,387 162 164 323 220 1,436 36 1947—Mar... . 12,380 1949—July 71 1,457 160 161 323 236 1,448 60 June.. , 12.410 Aug 71 1,503 160 161 323 238 1,450 47 Sept. 12.383 Sept 70 1,485 159 177 373 239 1,450 52 Dec. 12.079 Oct 70 1,486 154 178 373 304 1,450 47 Nov 70 1,495 154 178 373 304 1,451 64 1948—Mar.. .. 12,241 Dec 70 1,504 154 178 373 330 1,451 68 June.. 11,920 1950—Jan 70 1,508 154 183 373 332 1,459 68 Sept.... 11,777 Feb 70 1,503 154 187 373 334 1,460 69 Dec.. . . 11,856 Mar 69 1,527 154 190 373 333 1,460 87 Apr 71 1,534 154 184 373 P333 1,460 93 1949—Mar.. . 11,912 May 71 1,552 154 373 P335 100 June .. 11,651 June 71 373 P335 108 Sept 11,425 Dec 11,688 P Preliminary. 1950—Mar 11,984 1 Includes gold in Exchange Stabilization Fund. Gold in active portion of this Fund is June.... X2,422 not included in regular statistics on gold stock (Treasury gold) used in the Federal Reserve statement "Member Bank Reserves, Reserve Bank Credit, and Related Items" and in the Treasury statement "United States Money, Outstanding and in Circulation, by Kinds." 1 Exchange Equalization Account holdings of 2 Estimated dollar values derived by converting gold at home in amounts up to 1,224.4 gold, U. S. and Canadian dollars, as reported by million pesos at the rate of 3.0365 pesos per U. S. dollar and all other gold at the rate of British Government. (Gold reserves of Bank of 3.5447 pesos per U. S. dollar. England have remained unchanged at $1 million 3 Figures as reported by Foreign Exchange Control Board and Minister of Finance. since 1939, when Bank's holdings were trans- 4 Beginning December 1948 figures taken from last weekly statement of month. ferred to Exchange Equilization Accounts). 5 Beginning December 1947 includes gold holdings of issue and banking departments of 2 France—Exchange Stabilization Fund; Bel- Bank Melli Iran; prior to that represents holdings of issue department only. gium—Treasury. 6 Total gold holdings are not available. Beginning April 1946, the series is new and repre- NOTE.—For details regarding special internal sen 7 8 t F F s i o g g r o u l r l d i e s s t h e a o l r f d e c a f o s o u r r n e f t s r o e i l e r lo v s w e i i n ( n c 2 g l 5 u d d p e a e d r t e , c s s e : e n e 1 t 9 m B 4 U 6 in — L i L m M E u T a m I r N . ) 3 f l o e 1 r s , s a J g a n o n d l u d 1 a i r 9 n y 4 7 fo 1 — 9 re 5 M i 0 g , a n r p . c . 3 u 1 r 1 r 1 . e 4 n , c f y o o li t a n b o i t l e i ti 8 e . s. f g in o o s o ld t t i n tu o tr t t e a io n n sf 8 s e , . r s s e F e a o f p r f . e c 1 a t 0 i v n 8 a g 4 i , l a f t b h o l e o e t n B o b r t i a e t c is k 1 h , a f a i n g n d u d r e p F s . , r 1 e 0 n s 8 e c 5 e h , NOTE.—For description of figures, including details regarding special internal gold trans- Banking and Monetary Statistics, p. 526, and fers affecting the reported data, see Banking and Monetary Statistics, pp. 524-535; for back BULLETIN for November 1947, p. 1433, and Febfigures through 1941 see Table 160, pp. 544-555, in the same publication and for those sub- ruary 1945, p. 190. sequent to 1941 see BULLETIN for February 1950, p. 252. For revised back figures for Argentina and Canada, see BULLETIN for January 1949, p. 86, and February 1949, p. 196, respectively. 1082 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NET GOLD IMPORTS TO UNITED STATES, BY COUNTRIES [Net gold exports from United States (—). In millions of dollars] Gold valued at approximately $35 a fine ounce m Y o o e n r a t r h Total U K d n i o i n m t g e - d g B iu el m - France N la e e n r t d - h s - S d w e e n - U.S.S.R. Canada A t r i g n e a n- Co b l i o a m- Mexico r N a i g c u a a - V zu e e n l e a - 1942 315.7 2.0 11.3 208.9 .1 10.6 40.0 8.7 4.0 1943 68.9 .1 66.9 -10.8 -3.3 7.5 2.2 1944 -845.4 -695.5 46.2 -50.3 -109.7 7.7 -55.3 1945 — 106 3 2 53 1 15 1 7 4 —56 1 1946 311.5 .5 33.7 344.1 -134.0 3.6 7.3 .2 1947 .. . 1,866.3 488.4 162.9 28.0 27.9 445.4 335.5 21.0 -7.1 7.6 -.8 1948 1,680.4 1,095.4 '135!5' 34 4 -4.5 -29.7 103.3 25.1 15.8 7.9 -136.1 1949 686 5 527 9 1 — 1 5 8 14 2 4 4 6 9 —4 5 1949—june 6.9 — 1 3 4 6 July 131.1 121.8 9 2 7 — 1 >Aug .. .. 257 4 243 6 5 7 Sept 98 1 101 5 7 —8 3 6 Oct 56 1 40 7 5 2 1 4 5 _ 2 Nov 7.6 5 5 1 4 4 Dec — 1.4 .2 — .1 3 3 5 — 1 1950—Jan. 39.0 .1 .7 4 .4 -.4 Feb .2 5 2 5 — .1 Mar -1.6 -.1 5 3 .5 -.1 Apr 53.3 31.7 4 2 5 May 13.1 .1 4 '3 3 - 2 June 10.0 -.1 5 .3 .3 NET GOLD IMPORTS TO UNITED STATES, ANALYSIS OF CHANGES IN GOLD STOCK OF BY COUNTRIES—Continued UNITED STATES [In millions of dollars] [Net gold exports from United States (—). In millions of dollars] Gold valued at approximately $35 a fine ounce Gold stock at Ear- Other Philip- All Period end of period I i n n g c o r to e ld a ta s l e g p o o N ld r e t i t o m r -g m o c l r a d e r : a k s d e e d e- p t D i r c o o m d g u o e l c s d - - Y m e o a n r t o h r Am L e a r t i i c n an t A ra u l s i - a China p R i e n - e A So fr u ic th a c o o th u e n r - T u re ry as- Total 1 stock ex (- p ) ort c o r r e a in se - tion 2 Republics public tries (-) 1942 16.3 .5 3 4.1 8.9 1942 22,726 22,739 —23.0 315.7 —458.4 125.4 1943 14.6 2 -9.5 .3 .8 1943 21,938 21,981 —757.9 68.9 —803.6 48*3 1944 -10.8 .2 -11.9 3.6 30.2 1944 20,619 20,631 — 1,349 8—845.4 -459.8 35.8 1 19 9 4 4 5 6........ -8 7 .0 .0 .1 -1 -5 3 5 4 . . 8 0 -.2 .' i " 118.6 4 1. . 3 5 1 1 9 9 4 4 5 6 2 20 0 , , 5 0 2 6 9 5 2 20 0 , , 7 0 0 8 6 3 -5 6 4 2 7 3 . . 8 1 -1 3 0 1 6 1 . . 3 5 -3 4 5 6 6 5 . . 7 4 • 3 5 2 1 . . 0 2 1947 -17.1 •••••• -14.0 -3.5 410.7 -18.6 1947 22,754 22,868 82,162.1 1,866.3 210.0 75.8 1948 7.3 .6 -2.5 491.5 1 -63.5 1948. 24,244 24,399 1,530.41,680.4 -159.2 70.9 1949 6.4 .3 -19.1 -.1 190.7 2-37.6 1949 24,427 24,563 164.6 686.4 -495.7 r67.3 1949—June. . .8 -.1 9.5 -4.5 1949—July.. . 24,520 24,705 67.3 131.1 — 19.9 '5.5 July... .6 -3.5 -.2 12.7 —2.1 Aug.. . 24,608 24,771 66.5 257.4 -208.5 '6.3 Aug. . ,6 -7,0 22 3 —3.9 Sept... 24,602 24,728 -43.1 98.1 -154 8 '6.0 Sept... .5 -1.6 9.5 -4.8 Oct.... 24,584 24,688 -39.8 56.1 -89 1 • '7.1 Oct.. . 5 11 i 12 7 — 1 1 Nov... 24,479 24,626 -61.7 7.6 -63.9 '7.2 Nov.. . .3 3.3 -2.4 Dec... 24,427 24,563 -63.2 -1.4 -59.4 n5.4 Dec... .4 -.3 5.8 -8.5 1950—Jan.... 24,395 24,507 -56.3 39.0 -93.2 5.9 1950—Jan.... .4 .2 837.1 Feb.... 24,345 24,456 -51.2 .2 -50.4 5.5 Feb. . . .5 .1 -.2 -1.3 Mar... 24,246 24,360 -96.2 -1.6 -95.4 6.1 Mar... .4 3 -3.5 Apr.... 24,247 24,350 -9.2 53.3 -59.2 6.7 Apr. . . .5 .1 -.5 16.8 3.7 May... 24,231 24,340 -10.7 13.1 -29.9 6.8 May. . .3 1.8 10.5 June.. 24,231 24,331 -9.0 10.0 -17.6 6.6 June. . .7 .2 3.5 4.7 July.. . ^24,136 *>24,239 P-91.3 (4) 5-90.0 (4) 1 Includes net exports of 39.2 million dollars to Switzerland, 10.7 P Preliminary. ^Revised. 1 See footnote 1 on opposite page. million to Greece, 8.3 million to French Indo-China, and 5.3 million 2 Yearly figures through 1948 are estimates of United States Mint. to other countries. For explanation of monthly figures see p. 1081, footnote 4. 2 Includes net exports of 18.3 million dollars to Poland, 8.6 million 3 Change includes transfer of 687.5 million dollars gold subscripto French Indo-China, 6.6 million to Portuguese Asia, and 4.1 million tion to International Monetary Fund. to other countries. * Not yet available. 3 Includes imports of 43.1 million dollars of Thailand gold from 5 Gold held under earmark at the Federal Reserve Banks for foreign Japan and net exports of 3.0 million dollars to Poland and 3.0 million account, including gold held for the account of international instituto other countries. tions, amounted to 4,709.0 million dollars on July 31, 1950. Gold NOTE.—For back figures see Banking and Monetary Statistics, under earmark is not included in the gold stock of the United States. Table 158, pp. 539-541, and for description of statistics, see p. 524 NOTE.—For back figures and description of statistics, see Banking In the same publication. and Monetary Statistics, Table 156, pp. 536-538, and pp. 522-523. AUGUST 1950 1083 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTERNATIONAL MONETARY FUND AND INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT [Millions of dollars] 1950 1949 1950 International Fund International Bank Apr. Jan. Oct. Apr. Mar. Dec. Sept. Mar. Gold 1,460 1,459 1,450 1 ,436 Gold Currencies (balances with depositories Currencies (balances with depositories and securities payable on demand): and securities payable on demand): United States 1 ,299 1,300 1,311 1 ,341 United States 18 38 44 74 Other •4.266 4,266 4,265 4,186 Other 925 923 926 929 Unpaid balance of member subscriptions. 893 1,018 1.018 1,069 Investment securities (U. S. Govt. obli- Other assets 1 1 1 (2) gations) . . . 446 448 454 444 Member subscriptions 7,922 8,047 8,047 8,031 Calls on subscriptions to capital stock4. . 5 5 5 5 Accumulated net income —1 -2 -3 -2 Loans (incl. undisbursed portions and inch obligations sold under Bank's guarantee) 723 727 676 559 1950 1949 Other assets 7 6 11 10 Net currency purchased 8 Bonds outstanding 261 254 254 254 (Cumulative—millions of dollars) Liability on obligations sold under guar- June May Apr. June Lo a a n n t s e — e un ' d . isb . u . rsed 1 2 3 6 0 16 2 2 7 1 2 3 7 6 5 2 1 6 Other liabilities 2 4 3 5 Australian pounds 20.0 20.0 20.0 Special reserve 12 11 9 7 Belgian francs 11.4 11.4 11.4 33.0 Capital*. . ;.:..• 1,670 1,670 1,670 1,667 Brazilian cruzeiros 37.5 37.5 37.5 15.0 Accumulated net income 23 20 17 10 Chilean pesos 8.8 8.8 8.8 8.8 D C C o z a e n s c t i a s h h o R s k l i o c ro a v n n a k e c r ia o n lo n k e o s runy. 1 r 0 >! .2 o 1 - 6 0 . . 9 . 2 0 1 - 6 0 .9 . . 0 2 1 6 0 . . . 0 2 4 res 1 u I l n ti c n l g u d f e r s o m 1 .t 6 h e m d il e li v o a n l ua d t o i l o l n ar s s in r e S c e e p iv t a e b m le b er f o 1 r 94 cu 9 r . re : ncy adjustments Egyptian pounds 3.0 3.0 3.0 3.0 2 Less than $500,000. Ethiopian dollars .6 .6 .6 s As of June 30, 1950, the Fund had sold 759.8 million U. S. dollars; French francs 125.0 125.0 125.0 125.0 in addition, the Fund sold to the Netherlands 1.5 million pounds Indian rupees 100.0 100.0 100.0 100.0 sterling in May 1947 and 300 million Belgian francs in May 1948, and Mexican pesos 22.5 22.5 22.5 22.5 sold to Norway 200 million Belgian francs in June and July 1948. N Ni e c t a h r e a r g la u n a d n s c g o u r i d l o d b e a rs s . . . . . . . . 75.4 75.4 75.4 75. . 4 5 Re 4 p E u x rc c h lu a d se e s s a u m nc o a u ll n e t d e d p t o o r ti 2 o 4 n .2 s m of i ll c i a o p n i t d a o l ll s a u r b s s . criptions, amounting to Norwegian kroner 9.6 9.6 9.6 9.6 6,679 million dollars as of Mar. 31, 1950, of which 2,540 million repre- South African pounds. . . 10.0 10.0 10.0 10.0 sents the subscription of the United States. Turkish liras 5.0 5.0 5.0 5.0 Pounds sterling 300.0 300.0 300.0 300.0 Yugoslav dinars.... 9.0 9.0 9.0 Total 753.1 753.1 753.1 724.6 CENTRAL BANKS Assets of issue Assets of banking Liabilities of banking department department department Bank of England Note (Fig p u o r u e n s d i s n s m te i r l l l i i n o g n ) s of Gold1 a O ss t e h t e s r 2 N c a o o n t i d e n s a c v 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 io cu n l * a- Bankers' Pub D li e c posit E s CA Other t c l i O i e a a s p t b h i a i t e l n a i r - l d 1941—]r)ec 3i .2 780.0 28.8 6.4 267.8 751.7 219.9 11.2 54.1 17.9 1942—-Dec. 30 .2 950.0 27 7 3.5 267.9 923.4 223.4 9.0 48.8 17 9 1 1 9 9 4 4 3 4 — — Y D ) e ec c . 2 2 9 7 .2 2 1 1 , , 1 2 0 5 0 0 .0 0 1 12 3 .5 5 2 5 .1 5 3 3 0 1 7 7 .4 9 1 1 , , 0 2 8 3 8 8 . . 7 6 2 2 6 3 0 4 . . 7 3 1 5 0 . . 2 3 6 52 0 . . 3 4 1 17 7 . . 8 9 1945—Dec 26 .2 1,400 0 20 7 8 * 327 0 1,379.9 274.5 5.3 58.5 17.8 1946—Dec. 25 .2 1,450.0 23.4 13.6 327.6 1,428.2 . 278.9 10.3 57.3 18.1 1 1 9 9 4 4 8 7 — — D ]3 e ec c < . 3 2 1 9 . .2 2 1 1 , , 4 3 5 2 0 5 . . 0 0 1 3 0 6 0 .1 8 1 1 5 6 . . 2 7 3 4 3 0 1 1 .1 3 1 1 , , 3 2 4 9 9 3 . . 7 1 3 31 1 4 5 . . 5 1 1 1 1 8 . . 7 6 17.4 9 9 5 2 . . 5 1 1 1 8 8 . . 1 1 1949—juiy 27 2 1,350 0 49 9 15 3 381 6 1,305.1 294.0 11.2 32.4 91.0 18.3 Aug. 31 .2 1,350.0 80.4 10.4 354.1 1,275.0 277.6 15.9 41.7 91.2 18.5 Sept 28 4 1,300 0 41 4 23 6 368 7 1,264.5 295.7 9.1 16.4 93.9 18.5 Oct. 26 .4 1,300.0 47 3 23.3 429.7 1,258.7 298.5 14.0 62.8 107.3 17.8 Nov. 30 .4 1,300.0 39.9 15.3 437.8 1,265.8 295.9 8.9 58.6 111.5 18.0 Dec. 28 .4 1,350.0 33.7 14.8 489.6 1,321.9 299.2 11.6 97.9 111.2 18.1 1950—Jan. 25 .4 * 1,300.0 57.9 14.7 477.4 1,247.7 291.7 12.5 117.4 110.2 18.3 Feb 22 .4 1,300 0 58 4 22 0 486 7 1,247.2 285.2 14.0 136.0 113.5 18.4 Mar. 29 .4 1,300.0 38 5 12.3 507.2 1,267.3 283.5 12.1 160.0 83.9 18.5 Apr. 26. .4 1,300.0 28.4 22.0 529.4 1,277.7 288.8 13.9 169.8 89.5 17.8 May 3\ 4 1,300 0 19 9 19 1 554 9 1,286.6 281.3 12.0 188.4 94.2 18.0 June 28 .4 41,350.0 63.0 15.4 549.3 1,293.9 292.1 11.9 209.0 96.5 18.2 1 On June 9, 1945, the official buying price of the Bank of England for gold was increased from 168 shillings to 172 shillings and three pence per fine ounce, and on Sept. 19, 1949, it was raised to 248 shillings. For details regarding previous changes in the buying price of gold and for internal gold transfers during 1939, see BULLETIN for March 1950, p. 388, footnotes 1 and 4. 2 Securities and silver coin held as cover for fiduciary issue, the amount of which is also shown by this figure. 3 Notes issued less amounts held in banking department. 4 Fiduciary issue decreased by 50 million pounds on Jan. 11 and increased by 50 million on June 28, 1950. For details on previous changes see BULLETIN for February 1950, p. 254; April 1949, p. 450; and February 1948, p. 254. NOTE.—For back figures see Banking and Monetary Statistics, Table 164, pp. 638-640; for description of statistics, see pp. 560-561 in same publication. 1084 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CENTRAL BANKS—Continued Assets Liabilities Bank of Canada Dom ci i a n l io g n o v a e n r d n m p e ro n v t in- Deposits Sterling securities Other (F C ig a u n re a s d i i a n n m d i o ll l i l o a n rs s ) of Gold and S t U at n e i s ted O as t s h e e t r s circ N u o la t t e ion 2 liab a i n li d ties dollars . S te h r o m r t- i Other Ch b a a r n te k r s ed D g o o m m v e e i n n r t n io - n Other capital 3 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 1 1 9 9 4 4 0 1 — — D D e e c c . . 3 3 1 1, . . . (*) 2 3 0 8 0 . . 4 9 4 39 4 1 8 . . 8 4 2 1 1 2 6 7. . 3 7 3 1 3 2 . . 4 S 3 4 5 9 9 6 . . 9 0 2 2 1 3 7 2 . . 7 0 7 1 3 0 . . 8 9 9 6 . : 5 0 3 2 5 8 . . 1 5 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. 20.5 17.8 55.4 1944— Dec. 30., 172.3 906.9 573.9 34.3 ,036.0 401 12.9 27.7 209.1 1945—Dec. 31.. 156.8 1,157.3 688.3 29.5 ,129.1 521.2 153.3 29.8 198.5 1946—Dec. 31. . 1.0 1,197.4 708.2 42.1 ,186.2 565.5 60.5 93.8 42.7 1947—Dec. 31 .. 2.0 1,022.0 858.5 43.7 ,211.4 536.2 68.8 67.5 42.4 1948—Dec. 31.. .4 1,233.7 779.1 45.4 ,289.1 547.3 98.1 81.0 43.1 1949—July 30. . 52.9 1,499.2 499.5 45.1 ,271.0 566.9 94.3 73.8 90.6 Aug. 31, . 55.7 1,557.2 441.2 64.2 .269.7 578.0 109.7 61.8 99.2 Sept. 30. . 60.1 1,616.8 421.2 119.1 1290.7 611.5 141.0 64.1 109.8 Oct. 31. . 64.9 1,710.6 335.9 80.3 .293.5 626.0 66.1 77.4 128.8 Nov. 30. . 66,1 1,713.9 221.5 54.4 ,283.0 544.7 27.2 84.1 116.8 Dec. 31.. 74.1 1,781.4 227.8 42.5 ,307.4 541.7 30.7 126.9 119.2 1950—Jan. 31 .. 73.1 1,769.1 235.4 73.1 ,259.2 530.7 94.3 145.8 120.7 Feb. 28.. 76.7 1,786.2 191.1 56.2 ,250.6 •554.8 24.3 176.4 104.2 Mar. 31 .. 73.7 1,655.9 358.9 75.2 ,258.5 567.3 71.2 150.7 116.1 Apr. 29. , 86.0 1,668.3 371.0 56.5 ,269.8 551.6 41.3 199.8 119.4 May 31.. 73.3 1,685.7 372.6 60.1 ,275.9 534.3 68.9 202.7 109.9 June 30.. 84.1 1,436.7 622.0 58.8 1,275.8 544.5 35.3 215.8 130.1 Assets Liabilities m B i a ll n ( io F k n i g s o u f o r f e F s f r r a i a n n n c c s e ) Gold F c o h e r a e x n i - g g e n m O ar p k e e n t D 6 om S e p s e t c i i c a l bills Other Cu G A r o r d e v v n e a t r n n c m e O s e n t t t h o e 6 r a O ss t e h t e s r 5 ci N r ti c o o u t n l e a- G m ov e e n r t n- De E p C os A its Other c O l a i i a a t p t i n b h e i d t i e s a l r - l 1938—Dec. 29. 87,265 821 1,892 1,797 7,880 30,627 14,028 110,935 5,061 25,595 2,718 1939—Dec. 28. 97,267 112 5,818 2,345 5,149 14,200 30,473 15,549 151,322 1,914 14,751 2,925 1940—Dec. 26. 84,616 42 7,802 661 3,646 63,900 112,317 18,571 218,383 984 27.202 744,986 1941—Dec. 31. 84,598 38 6,812 12 4,517 69,500 182,507 17,424 270,144 1,517 25,272 68,474 1942—Dec. 31. 84,598 37 8,420 169 5,368 68,250 250,965 16,990 382,774 770 29,935 21,318 1943—Dec. 30. 84,598 37 9,518 29 7.543 64,400 366,973 16,601 500,386 578 33,137 15.596 1944—Dec. 28. 75,151 42 12,170 48 18,592 15,850 475,447 20,892 572,510 748 37,855 7,078 1 1 9 9 4 4 6 5 — — D D e e c c . . 2 2 6 7 . . 1 9 2 4 9 , , 8 8 1 1 7 7 68 7 3 1 7 7 , , 6 9 1 8 8 0 3,1 3 3 0 5 3 2 76 5 , , 2 5 5 4 4 8 67i66o' 4 4 4 8 5 0 , , 4 4 4 4 7 7 3 2 3 4 , , ' 7 1 3 4 33 5 7 7 2 0 1 , , 0 8 0 6 6 5 12, 7 0 6 4 5 8 5 6 7 3 , , 7 4 5 6 5 8 4 7 , , 0 2 8 1 7 3 1947—Dec. 31. 65,225 12 67,395 64 117,826 147,400 558,039 59,024 920,831 733 82,479 10,942 1948—Dec. 30. 65,225 30 97,447 8,577 238,576 150,900 558,039 57,622 987,621 806 171,783 16,206 1949—July 28. 8 62,274 14,380 137,189 4,486 296,228 162,700 560,990 69,764 1,134,440 195 157,714 15,661 Aug. 25. 862,274 36,675 134,031 4,144 255,099 165,000 560,990 67,738 1,133,129 292 136,331 16,199 Sept. 29. 862,274 51,504 138,787 15,092 298,005 164,200 560,990 76,261 1,210,606 201 140,548 15,757 Oct. 27. 862,274 53,002 140,936 23.486 305,454 152,700 560,990 81,425 1,218,697 202 142,845 18,522 Nov. 24. 8 62,274 58,174 143,794 28,164 306,397 152,500 560,990 85,587 1,203,768 153 173,396 20,563 Dec. 29. 862,274 61,943 137,689 28,548 335,727 157,900 560,990 112,658 1,278,211 1,168 158,973 19,377 1950—Jan. 26. 8 62,274 59,719 132,447 31,410 335,845 159,900 560,990 94,504 1.256,758 42 22,910 133,526 23,853 Feb. 23. 862,274 58,658 123,912 31,467 333,358 165,200 560,990 91,046 1,271,387 79 14,155 120,858 20,426 Mar. 30. 862,274 63,987 123,013 29,279 359,671 166,000 560,990 112,552 1,321,855 24 22,432 115,627 17,828 Apr. 27. 862,274 83,526 117,039 29,297 367,740 167,100 560,990 113,338 1,332,148 21 34,284 114,103 20,747 May 25. 862,274 98,539 115,978 27,090 341,340 167,700 560,990 107,521 1,324,533 17 21,927 110,321 24,634 June 29., 62,274 116,652 128,939 18,507 368,694 166,600 560,990 "116,833 1,382,479 62 8,496 126,978 21,475 1 Securities maturing in two years or less. 2 Includes notes held by the chartered banks, which constitute an important part of their reserves. 3 Beginning November 1944, includes a certain amount of sterling and United States dollars. 4 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). 6 For explanation of these items, see BULLETIN for January 1950, p. 117, footnote 6. 8 Beginning January 1950, when the Bank of France modified the form of presentation of its statement, the figures under this heading are not strictly comparable with those shown for earlier dates. 7 Includes the following amounts (in millions of francs) for account of the Central Administration of the Reichskreditkasscn: 1940, 41,400; 1941, 64,580; 1942, 16,857; 1943, 10,724. 8 Includes 9,293 million francs of gold earmarked as collateral against a loan. For details on devaluations and other changes in the gold holdings of the Bank of France, see BULLETIN for June 1949, p. 747; May 1948, p. 601; May 1940, pp. 406-407; January 1939, p. 29; September 1937, p. 853; and November 1936, pp. 878-880. 9 Includes advance to Stabilization Fund, amounting to 43.0 billion francs on June 29. NOTE.—For back figures on Bank of Canada and Bank of France, see Banking and Monetary Statistics, Tables 166 and 165, pp. 644-645 and pp. 641-643, respectively; for description of statistics, see pp. 562-564 in same publication. For last available report from the Reichsbank (February 1945), see BULLETIN for December 1946, p. 1424. AUGUST 1950 1085 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CENTRAL BANKS—Continued Central Bank 1950 1949 Central Bank 1950 1949 (Figures as of last report (Figures as of last report date of month) June May Apr. June date of month) June May Apr. June Central Bank of the Argentine Central Bank of Costa Rica2 Republic (millions of pesos): (thousands of colones): Gold reported separately. 656 656 506 Gold 11,542 11,547 Other gold and foreign exchange. ,538 1,408 1,590 Foreign exchange 33,750 15,950 Government securities ,853 1,835 1,749 Net claim on Intl. Fund1 7,019 Rediscounts and loans to. banks.. ,964 29,686 25,525 Loans and discounts 87,196 85,939 O Cu th r e re r n a c s y s e c t i s r culati ; on ,5 2 5 3 5 0 10,3 2 4 1 4 6 8,1 1 8 7 4 3 S O e t c h u e r r i t a ie ss s ets 1 1 7 9, , 3 4 7 8 2 0 18,612 Deposits^-Nationalized ,303 21,073 18,931 Note circulation 108,268 103,410 Other sight obligations 496 553 600 Demand deposits 58,085i 63,128 Other liabilities and capital ,887 1,831 1,827 Other liabilities and capital 10,006 Commonwealth Bank of Aus- National Bank of Czechoslovakia tralia (thousands of pounds): (millions of koruny): (Mar.)* Gold and foreign exchange ,933513,820 391,980 Gold and foreign exchange 3,349 2,922 Checks and bills of other banks.. ,803 5,671 7,032 Loans and discounts 24,716 22,618 Securities (incl. Government and Other assets 48,433 49,141 Treasury bills) 354,985339,879 339,785 Note circulation 68,447 64,380 Other assets 86,452 88,779 60,685 Deposits 702 789 Note circulation 229,063 230,063 212,855 Other liabilities and capital 7,348 9,512 Deposits of Trading Banks: National Bank of Denmark Special 470 466,220 369,520 (millions of kroner): Other 30,235 24,162 Gold 69 69 69 70 Other liabilities and capital 221,631 192,945 Foreign exchange 349 378 441 130 Austrian National Bank (millions Contributions to Intl. Fund and of schillings): to Intl. Bank 6 6 6 65 Gold 50 50 50 50 Loans and discounts 33 26 26 29 Foreign exchange 158 155 145 129 Securities 123 124 132 100 Loans and discounts 2,346 ,210 2,029 1,245 Govt. compensation account.... 4,638 4,650 4,658 4,814 Claim against Government 6,122 ,002 6,393 6,816 Other assets 226 218 209 226 Other assets 37 38 37 6 Note circulation 1,580 1,544 1,548 1,478 Note circulation 5,783 ,684 5,618 5,797 Deposits—Government 1,864 1,809 1,760 1,728 Deposits—Banks 204 194 180 363 Other 1,851 1,970 2,071 2,083 Other 1,111 ,071 1,089 563 Other liabilities and capital 150 148 163 146 Blocked 1,615 ,505 1,766 1,523 Central Bank of the Dominican National Bank of Belgium Republic (thousands of dollars): (millions of francs): Gold 4,045 4,045 4,030 4,009 Gold 29,058 716 29,747 30,859 Foreign exchange (net) 14,210 13,292 11,974 10,499 Foreign claims and balances (net) 7,879 316 8,939 12,205 Net claim on Intl. Fund 1 1,250 1,250 1,250 1,250 Loans and discounts 4,396 840 3,407 4,554 Paid-in capital—Intl. Bank 40 40 40 40 Consolidated Government debt. . 34,939 939 34,939 34,991 Loans and discounts 153 211 252 171 Government securities 7,825 001 8,697 4,800 Government securities 5,383 5,377 5,377 4,974 Other assets 6,437 924 4,859 3,781 Other assets. 946 667 651 746 Note circulation 86,132 794 86,079 84,938 Note circulation 20,260 19,984 19,069 17,203 Deposits—Demand 2,158 712 2,245 3,034 Demand deposits 5,482 4,617 4,232 4,276 EGA 109 173 234 1,015 Other liabilities and capital 285 281 274 211 Other liabilities and capital 2,135 057 2,030 2,202Central Bank of Ecuador Central Bank of Bolivia—Mone- (thousands of sucres): tary dept. (millions of bolivianos): Gold 265,749 278,331 Gold at home and abroad 956 956 Foreign exchange (net) -41,359 -36,561 Foreign exchange 226 245 Net claim on Intl. Fund 1. ...... 16,-881 16,881 Loans and discounts 1,045 752 Credits—Government 267,018 236,107 Government securities 740 755 Other 121,369 111,026 Other assets 376 57 Other assets 127,879 115,428 Note circulation 2,635 ,250 Note circulation 378,436 360,565 Deposits 362 269 Demand deposits—Private banks 103,436 119,054 Other liabilities and capital 346 246 Other. .. 124,287 95,436 Central Bank of Chile (millions Other liabilities and capital 151,377 146,158 of pesos): National Bank of Egypt (thou- Gold ,240 1,235 1,317 sands of pounds): Foreign exchange (net) 110 34 101 Gold.... 6,376 6,376 6,376 Net claim on Intl. Fund * 1 1 1 Foreign exchange 15,479 16,162 13,958 Discounts for member banks.... ,002 1,679 1,320 Loans and discounts 5,325 5,816 3,191 Loans to Government 688 688 732 British, Egyptian, and other Other loans and discounts ,756 2,734 2,239 Government securities 314,211320,061 316,677 Other assets ,758 1,569 1,434 Other assets 46,115 50,103 28,797 Note circulation ,762 5,727 5,163 Note circulation 155,737160,644 142,305 Deposits—Bank ,328 1,178 1,326 Deposits—Government 88,873103,252 92,025 Other 354 254 258 Other 134,446126,209 125,899 Other liabilities and capital ,112 781 396 Other liabilities and capital 8,450 8,411 8,771 Bank of the Republic of Colombia Central Reserve Bank of El Salva- (thousands of pesos): dor (thousands of colones): Gold and foreign exchange 188,113180 135215,988 152,025 Gold 50,383 50,431 46,740 35,977 Net claim on Intl. Fund x 24,368 24,368 24,368 24,367 Foreign exchange (net) 62,759 64,114 74,050 52,463 Paid-in capital—Intl. Bank 1,371 1,371 1,371 1,370 Net claim on Intl. Fund x....... 1,565 1,565 1,565 1,564 Loans and discounts 253,058225 i175191,394 196,523 Loans and discounts 811 562 155 354 Government loans and securities. 146,660141.854142,662 134,722 Government debt and securities.. 5,041 5,054 5,078 5,259 Other assets 52,408 57.140 57,488 54,899 Other assets 1,724 1,658 1,543 1,634 Note circulation 437,066 406 215414,430 347,286 Note circulation 65,031 66,142 68,031 55,981 Deposits 172,662 925169,222 172,130 Deposits 51,155 51,277 55,117 35,313 Other liabilities and capital 56,251 903 49,620 44,491 Other liabilities and capital 6,097 5,965 5,984 5,958 1 This figure represents the amount of the bank's subscription to the Fund less the bank's local currency liability to the Fund. Until such time as the Fund engages in operations in this currency, the "net claim" will equal the country's gold contribution. 2 The Central Bank of Costa Rica began operations on Feb. 1, 1950. Figures shown prior to this date refer to the Issue Department of the National Bank. * Latest month available. NOTE.—For details relating to individual items in certain bank statements, see BULLETIN for January 1950, p. 118. 1086 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CENTRAL BANKS—Continued Central Bank 1950 1949 Central Bank 1950 1949 (Figures as of last report (Figures as of last report date of month) June May Apr. June date of month) June May Apr. June State Bank of Ethiopia—Issue Central Bank of Ireland (thousands dept. (thousands of dollars): of pounds): Gold 7,371 7,371 4,393 Gold 2,646 2,646 2,646 2,646 Silver 12,191 12,191 6,271 Sterling funds 46,988 47,380 48,142 43,610 Foreign exchange 17,745 20,279 29,974 Note circulation 49,635 50,026 50,788 46,256 Treasury bills 9,247 9,247 9,247Bank of Italy (billions of lire): Other assets 33,140 30,559 30,381 Gold 4 4 4 2 Circulation—Notes 49,660 49,664 49,205 Foreign exchange 25 24 22 18 Coin 29,849 29,821 29,363 Advances to Treasury 654 654 657 663 Other liabilities and capital 185 163 1,698 Loans and discounts 190 180 198 186 Bank of Finland (millions of mark- Government securities 189 200 221 201 kaa): Other assets 572 536 531 348 Gold 2,230 1,787 1,787 269 Bank of Italy notes 979 968 973 854 Foreign assets (net) -2,266 -2,300 -1,939 -729 Allied military notes 5 6 7 43 Clearings (net) -9 -134 -28 -1,339 Deposits—Government 180 174 163 137 Loans and discounts 39,157 39,663 39,493 37,225 Demand 161 132 152 127 Securities 1,088 1,080 1,036 858 Other 253 271 288 214 Other assets 1,959 1,191 1,585 1,473 Other liabilities and capital.... 57 48 51 43 Note circulation 31,328 30,326 30,266 27,934Bank of Japan (millions of yen): Deposits 1,384 1,799 2,667 1,777 Cash and bullion 1,447 1,245 Other liabilities and capital 9,446 9,163 9,001 8,046 Advances to Government 70,226 102,655 Bank of German States 1 Loans and discounts. 123.670 69,714 (millions of German marks): Government securities 160,599 116,305 Foreign exchange 912 821 1,338 Reconversion Fin. Bk. bonds. . . . 57,049 Loans and discounts 3,492 3,641 1,273 Other assets 31,062 24,709 Loans to Government 8,717 8,352 8,527 Note circulation 319,646 300,628 Other assets 1,137 1,163 1,853 Deposits—Government 33,275 39.043 Note circulation 7,793 7,854 6,918 Other 18,221 21,320 Deposits—Government 1,169 1,199 1,294 Other liabilities 15,862 10,686 Banks 1,087 962 1,301 The Java Bank (millions of guilders): Other liabil O it t ie h s e r and capital 3,7 46 4 3 6 3,5 4 4 14 8 3,1 3 1 6 7 1 F G o o r l e d i s g n bills ; 67 5 5 0 67 6 5 0 6 4 7 3 5 4 1 7 1 1 0 Bank of Greece (billions of drach- Loans and discounts 97 171 91 66 mae): Advances to Government 1,854 1,674 2,262 964 Gold and foreign exchange (net). 349 405 388 121 Other assets 93 89 94 82 Loans and discounts 151 147 141 77 Note circulation 1,713 1,647 1,627 858 Advances—Government 5,006 3,967 4,404 2,663 Deposits 654 656 1,190 746 Other 2,246 2,122 2,074 1,612 Other liabilities and capital4. . . . 403 366 347 Other assets 883 780 809 819Bank of Mexico (millions of pesos): Note circulation 1,653 1,651 1,658 1,218 Monetary reserve 5 765 772 788 669 Deposits—Government 841 467 340 493 "Authorized" holdings of secu- Reconstruction and rities, etc 2,366 2,421 2,440 2,037 relief accts 2,502 2,036 2,569 648 Bills and discounts 181 182 183 662 Other 1,070 860 904 535 Other assets 364 329 357 186 Other liabilities and capital...... 2,569 2,408 2,346 2,398 Note circulation 2,212 2,194 2.224 1,917 Bank of Guatemala (thousands of Demand liabilities 848 893 928 * 759 quetzales): Other liabilities and capital 616 617 616 878 Gold 27,229 27,229 27,229Netherlands Bank (millions of Foreign exchange 8,861 10,613 15,928 guilders): Gold contribution to Int'l. Fund. 1,250 1,250 1,250 Golds. 871 871 871 439 Rediscounts and advances 5,524 5,747 2,537 Silver (including subsidiary coin). 13 13 12 8 Other assets 18,478 19,158 12,494 Foreign assets (net). 1,071 1,015 868 309 Circulation—Notes 34,465 35,544 32,899 Loans and discounts 144 147 158 150 Coin 3,145 3,164 3,083 Govt. debt and securities 2,850 2,850 ,850 3,300 Deposits—Government 1,857 2,097 4,099 Other assets 858 854 799 507 Banks 11,323 12,887 9,732 Note circulation—Old 62 64 65 78 Other liabilities and capital 10,552 10,304 9,626 New 2,818 2,917 ,908 2,971 National Bank of Hungary (mil- Deposits—Government 415 409 543 181 lions of forint): (Feb.)2 Blocked 37 31 30 62 Gold 482 412 EGA 873 795 659 379 Foreign exchange 13 207 Other 1,051 1,006 833 782 Discounts 3 Other liabilities and capital 552 529 519 260 Loans—Treasury 287 310Reserve Bank of New Zealand Other 9,204 7,147 (thousands of pounds): Other assets 211 171 Gold 4,224 4,112 3,359 Note circulation 2,673 3,007 Sterling exchange reserve 59,309 51,955 58,963 Demand deposits—Government. 12 1 Advances to State or State un- Other 6,913 4,624 dertakings 59,254 61,034 33,397 Other liabilities and capital 599 618 Investments. 27,658 31,658 48,094 Reserve Bank of India (millions of Other assets 6,762 6,537 6,054 rupees): Note circulation 53,893 54,513 50,310 Issue department: Demand deposits 96,605 94,109 94,405 Gold at home and abroad 400 400 400 Other liabilities and capital. 6,710 6,674 5,153 Sterling securities 6,382 6,503 6,953Bank of Norway (millions of kroner): Indian Govt. securities 4,717 4,603 4,137 Gold 244 244 230 232 Rupee coin . . . 550 557 472 Foreign assets (net) 72 155 209 150 Note circulation 11,817 11,846 11,545 Clearing accounts (net) -88 -100 -85 -73 Banking department: Loans and discounts 38 40 37 81 Notes of issue department.... 231 218 418 Securities 47 47 47 48 Balances abroad 1,937 1,983 1,328 Occupation account (net) 7,112 7,112 7,112 ,713 Bills discounted 32 34 25 Other assets 66 67 73 91 Loans to Government 14 42 105 Note circulation 2,263 2,187 2,213 ,144 Other assets 742 766 •1,178 Deposits—Government 2,744 2,903 2,965 ,878 Deposits 2,652 2,733 2,756 Banks 1,422 1,444 1,402 841 Other liabilities and capital. . . 303 309 297 Blocked 550 555 559 639 Other 43 38 42 165 Other liabilities and capital 469 437 443 574 1 This statement represents combined figures for the Bank of the German States and the eleven Land Central Banks. 2 Latest month available. 3 Gold revalued on Jan. 18, 1950, from .334987 to .233861 grams of fine gold per guilder. 4 Pending negotiations with the Netherlands and the EGA, counterpart funds are included in "Other liabilities and capital," beginning February 1950. 5 Includes gold, silver, and foreign exchange forming required reserve (25 per cent) against notes and other demand liabilities. e Gold revalued on Sept. 19, 1949, from .334987 to .233861 grams of fine gold per guilder. AUGUST 1950 1087 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CENTRAL BANKS—Continued Central Bank 1950 1949 Central Bank 1950 1949 (Figures as of last report (Figures as of last report date of month) Jii n.e May Apr. June • date of month) June 'May Apr. June State Bank of Pakistan (millions of Bank of Spain—Cont. rupees): Other assets 4,384 4,129 4,859 4,022 Issue department: Note circulation .27,523 . 2.7,302 27,561 • 24,888 Gold at home and abroad 44 44 Deposits-^-Government. 882 629 1,256 1,329 Stirling securities 714 881 Other 3,045 9,737 9,489 2 871 Pakistan Govt securities 361 Other liabilities and capital 533 531 S99 S?S Govt of India securities 935 340 Bank of Sweden (millions of kronor): India currency 432 419 Gold 157 158 t 56 157 Hupee coin 57 56 Foreign assets (net) 1 043 997 899 f 16 Notes in circulation 1 781 1,682 Swedish Govt. securities and ad- Banking department: vances to National Debt Office 6 2,833 2,789 2,898 3,360 Notes of issue department 63 58 Other domestic bills and advances 131 170 158 83 Balances abroad 398 827 Other assets 366 39S 396 401 B'U* discounted 105 125 3 178 3 092 907 2 006 Loan*3 to Government 1 Demand deposits—Government.. 533 442 437 748 Other assets 38? 156 Other 147 303 184 18? Deposits 791 1,072 Other liabilities and caoital 671 601 603 491 Other liabilities and capital 88 94 Swiss National Bank (millions of Bank of Paraguay—Monetary dept. francs): (thousands of guaranies): Gold 6,252 6.239 6,243 5 998 Gold 600 600 600 607 Foreign exchange 283 298 996 -116 028 A 845 3,263 2 108 97 90 80 136 Net claim on Tnt'l. Fund l 2.710 2,710 2,710 2,710 Other assets 72 74 68 76 Paid-in canital—Int'l. Bank -195 -195 -194 -92 Note circulation 4,283 4,243 4 267 4 319 Loans and discounts 1?4 050 J90 593 113 416 91,960 Other sight liabilities ? 903 ? 069 9 033 1 781 Government loans and securities. 6,512 8.282 9,187 4,182 Other liabilities and capital 218 397 396 526 Other assets 01 243 19,85^ 1? 794 5,539 Central Bank of the Republic of Note and coin issue 119 313 IIS 338 104 638 81,388 Turkey (thousands of pounds): Demand der>osits 36 124 35,254 39 074 23,116 Gold 4-31,890 431 709 448 159 Other liabilities and capital. .... 5,521 6,095 5,063 2,509 Foreign exchange and foreign Central Reserve Bank of Peru clearings 93 160 112 631 118 893 (thousands of soles)* Loans and discounts 970 ,837 868 833 752 619 Gold and foreign exchange 2 320,837 272,621 282.156 246,974 Securities 38,339 39 803 89 806 N°t claim on Iit'l Fund * 90 495 90 495 90,495 20,495 Other assets 75,886 86 671 59 071 Contribution to Int'l Bank ? 238 9,938 ? 938 2,238 Note circulation 878 638 897 565 892 975 Loans and discounts to banks. . . m 489 182,292 194,545 137,844 Deposits—Gold 153,221 153 040 153 036 Loans to Government ?n 801 706 4 74707,029 728,974 Other 36?,040 397 075 237 983 Other assp**3 7S1 448 709, 863178 935 67,166 Other liabilities and capital 166 914 1*1 967 185 947 Note circulation 918,322 925,850 914,352 811,682 Bank of the Republic of Uruguay Deposits 170 380 14? ?65 150 409 300,183 (thousands of pesos): Other liabilities and capital 365 606 s?s,867 3?0 636 91,826 Gold 9 79 839 970 839 244 976 Central Bank of the Philippines Silver 11,723 11 663 12 214 (thousands of pesos): Paid-in capital—Int'l. Bank 312 311 313 Gold /| 809 4,449 3 881 2,721 Advances to State and govern- For^icn exchanc1 436 441 •145 983 444,691 638,895 ment bodies 152 557 153 099 146 908 *Net claim on Int'l. Fund x . 7,502 . 7,502 7,502 7,501 Other loans and discounts 266,227 260 699 253 881 63 918 •18 017 7? 749 Other assets ?79 oso978 675 247 475 Dornes^'c securities PS 779 P3 817 115, 502 9,739 Note circulation 990 475 987 846 279 807 Other assets M6 817 15?, 384146 387 143,613 ' Deposits—Government 95 889 94 773 74 956 531 477 531 567 537,948 534,426 Other 9 84,469 ?67 749 285 095 Demand deposits—U S dollars" 40,649 Other liabilities and capital 319 785 333 918 265 300 Pesos 139,282 134.546 141,283 135,438 Central Bank of Venezuela (mil- Other liabilities and capital 1.14,508 113,040 111,481 91,957 lions of bolivares): Bank of Portugal (millions of Gold 1 041 1,041 1 041 889 escudos): Foreign exchange (net) .72 55 64 278 Gold 143 144 3 146 Other assets . . . . : 64 66 SO 13 %983 9,019 7,594 Note circulation—Central Bank. 744 758 780 768 Loans and discounts 501 496 456 National banks. . 1 1 1 1 Advances to Government 1 247 1 948 1 ,249 Deposits 149 159 179 384 Other assets 476 45f 503 Other liabilities and capital 989 751 711 56 Note circulation 7 665 7, 659 8,147 Bank for International Settle- Demand deposits—Government.. 233 335 74 ments (thousands of Swiss gold. EGA 107 107 francs): Other 4, 000 3,925 3,806 Gold in bars 329 989 305,018283 584 168 838 Other liabilities and capital 2,345 2,332 920 Cash on hand and with banks. . . 21 429 47,975 27 728 30 385 South African Reserve Bank Sight funds at interest 2 908 2,930 2 934 4 334 (thousands of pounds): Rediscountable bills and accept- Gold * 6? ,991 6* 11X 36,593 ances (at cost) 183 059 181 986139 340 20,869 Foreign bills 84 505 81 425 986 Time funds at interest 96 770 37 549 33 156 22.409 Other bills and loans 8,388 Q,112 74,632 Sundry bills and investments.. . . 969 91 5?93 788 9 50 08? 152,705 Other assets 36 339 36 566 14,280 Funds invested in Germany ^97 901 997 701 9,97 701 797 901 Note circulation 68 140 67 077 66,090 Other assets 1 514 1 500 f 585 2,034 Deposits 103,071 103 591 52,559 Demand deposits (gold) 188 480 150 931 13 900 13,418 Other liabilities and capital 91 064 90 658 7,841 Short-term deposits: Bank of Spain (millions of pesetas): Central banks—Own account.. 134 253 437, 195109 657 200,956 Gold 668 668 668 934 Other 91 608 99 065 9,5 I ,397 Silver 446 ^-46 487 497 Long-term deposits: Special 778 909 9?8 909 9.98 909 778 909 Government loans and securities. 15.681 15,737 15.143 15.954 Other liabilities and capital 258 835 258,847258,250 254,157 Other loans and discounts 10. S04 10,218 10,741 8,206 1 This figure represents the amount of the bank's subscription to the Fund less the bank's local currency liability to the Fund. Until sue!:h time •as the Fund engages in operations in this currency, the "net claim" will equal the country's gold contribution. 2 In November 1949, part of the gold and foreign exchange holdings of the bank were revalued. 3 Account of National Treasury. 4 On Dec. 31, 1949, gold revalued from 172 to 248 shillings per fine ounce. 6 Includes small amount of non-Government bonds. NOTE.—For details relating to individual items in certain bank statements, see BULLETIN for January 1950, p. 120. 1088 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— eff D ec a t 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 - d h s - S d w en e- S l w a e n r i - d tz- ba C n e k n tr o a f— l R Ju 3 a n 0 te e eff D ec a t t i e ve ba C n e k n tr o a f— l R Ju 3 a n 0 te e eff D ec a t t i e ve In effect Dec. 31, Albania Mar. 21, 1940 Ireland Nov. 23, 1943 1938 2 4 2 Argentina P Mar. 1, 1936 Italy 4 Apr. 6, 1950 Jan. 4, 1939 2 Austria Aug. 3, 1945 Tapan 5.11 Tuly 5, 1948 Apr. 17 4 Belgium Oct. 6, 1949 Java 3 Jan. 14, 1937 May 11 3 Bolivia Feb. 4, 1948 Latvia 5 Feb. 17, 1940 July 6 Aug. 24 4 Aug 29 3 Sept. 28 •t Canada .. Feb. 8, 1944 Lithuania. . . 6 July 15, 1939 Oct. 26 2 Chile 3-4^1 Dec. 16, 1936 Mexico 1 June 4, 1942 Dec 15 3 Colombia 4 Julv 18, 1933 Netherlands . June 27, 1941 Tan. 25 194-0 2 Costa Rica 4 Feb. 1,1950 New Zealand. Tuly 26, 1941 Apr. 9 Czechoslovakia 2% Oct. 28, 1945 Norway...... Jan. 9, 1946 May 17 • 2)4 Mar. 17, 1941.,. May 29 3 June 27 2A Denmark Julv 4, 1950 Peru 6 Nov. 13. 1947 Jan. 16, 1945 . i i£ Ecuador io 2 May 13, 1948 Portugal. , , . Jan. 12, 1944 J F a e n b . 2 9 0 1M • ?- E E l s t S o a n l i v a ado , r . . .. 3 O M c a t r . . 2 1 , , 1 1 9 9 5 3 0 5 S Sp o a u i t n h Africa. 3jJ O M c a t r . . 1 1 3 8 , , 1 1 9 9 4 4 9 9 Nov. 7, 1946 2M> Finland 5% July 1, 1949 Sweden Feb. 9, 1945 Dec 19 3 Jan. 10, 1947 &2M 4ug. 27 SH France June 8, 1950 Switzerland. Nov. 26, 1936 O Ju c n t. e ?8 9 l° . 4 . 8 .. 2M&3 1 1-5 G Gr e e r e m ce any M- 1 4 2 J T u u l l y y 1 1 2 4 , , 1 1 9 9 4 4 8 9 T U u n r i k te e d y King- 4 July ls 1938 Sept 6 Hungary 5 Nov. 1, 1947 dom 2 Oct. 26, 1939 Oct 1 3 India 3 Nov. 28, 1935 U.S.S.R.. .. 4 July 1, 1936 May 27, 1949.. July 14 I 1—4 Oct 6 1 The lower rate applies to the Bank Deutscher Laender, and the higher June 8, 1950 rate applies to the Land Central banks. In effect June 30, NOTE.—Changes since June 30: Denmark--July 4, up from 3)4 to \'A 1950 2 2y 2 U-4 2A IK per cent. OPEN-MARKET RATES [Per cent per annum] Canada United Kingdom France Netherlands Sweden Switzerland Month Treasury Bankers' Treasury Day-to- Bankers' Day-to- Treasurv Day-to- - Loans Private bills acceptances bills day allowance day bills day up to discount 3 months 3 months 3 months money on deposits money 3 months money 3 months rate 1942—Mav .54 1 .03 1 .00 1 .03 1 .62 3-5)4 1.25 1 1 9 9 4 4 4 3 — — M ^[f a > v v . . 3 5 9 0 1 1 . . 0 0 3 3 1 1 . . 0 0 0 0 1 1 .1 .0 3 7 y> i 1 . . 6 6 1 6 3-5 y, 1 I . . 2 2 5 5 1945—Alyv. . .37 J . 03 1.00 1 .03 ! .38 2A-5 1.25 1946~-Mav. . .39 .53 .51 .63 y 1.34 1 .27 .93 1.25 1947—Mav . .41 .53 .51 .63 y2> 1 .16 1.45 1 .08 iy r -\y z 1.25 'J 948—Mav .41. .56 .51 .63 'A 2.12 1 .33 . 94 2)4-4)4 .50 1949—May .50 .63 .52 .63 H 2 . \3 1.28 1.03 2y-VA 1.63 2 1949— A J J u u u l n v g e .. . . .5 5 5 1 1 1 . . . 6 6 6 7 3 3 . . . 5 5 5 2 2 2 . . 6 6 6 3 3 3 {aA * P P » 2 2 2 . . - 3 . 1 0 4 6 6 i 1 4 .3 3 2 .8 9 8 3 1 3 2 2 y * 2 A -\ - y 4 2 H 1 1 L . . . 5 5 5 2 0 0 Sent 51 69 52 .63 r>2 03 1i 2155 1 01 223M^--441M^ L 50 Oct .51 69 52 63 P2 25 I 07 .78 2'A-zy L.50 N D o e v c.. .... . . 5 5 1 1 6 6 9 9 5 5 2 2 .6 6 3 3 r n - 2 5 .5 5 5 1 1 .3 1 2 6 1 ,9 0 3 3 2 2 " y A - - V ± A y 2 . . 5 5 0 0 2 1950—Jan .51 .69 .52 .63 2.18 I 31 1 .22 2H-4J4 L. 50 Feb .51 ,69 .52 .63 • X 2.40 1 .54 1.50 214-114 1.50 Alar .51 . 69 .52 .63 2.70 1 .45 1.13 214-4)4 L.50 Apr. . .51 .69 .51 .63 is 2.64 1.44 1 .25 2H-4A .50 Mav .51 .69 .51 .63 2.68 1.45 1 .03 2M-4M .50 P Preliminary. NO'JE.—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. .AUGUST 1950 1089 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

COMMERCIAL BANKS Assets Liabilities United Kingdom 1 (1 b m 1 a i n l L l k io s o s . n n t e s d r o F o li n i f n g g p u c ) o l r e e u a s n r i i d n n s g re C se a r s v h es M c n a s o l o h l n t o e i a c r y n t e d at B co il u ls n t d e i d s- T re d r c e e e p a i o s p u s t i s r t y 2 Securities c L u o s a to n m s t e o rs O as t s h e e t r s Total D D e e p m o a s n it d s Time li c a O a b a p t i n h l i i d t e t a i r e l s 1943—December... . . 422 151 133 1,307 1,154 761 349 4,032 2,712 1,319 245 1944—December 500 199 147 1,667 1,165 772 347 4 545 3,045 1,500 250 1945—December 536 252 369 1,523 1,234 827 374 4,850 3,262 1,588 265 1946—December 499 432 610 1,560 1.427 594 505 5,685 3,823 1,862 342 1947—December . 502 480 793 1,288 1,483 219 567 5,935 3,962 1,972 396 1948—December 502 485 741 1,397 1,478 1,396 621 6,200 4,159 2,041 420 1949—june 481 500 786 1,142 1,502 L ,461 562 6,025 3,961 2,064 410 July 492 492 788 1,160 1,512 1,435 508 5,973 3,939 2,034 413 August 492 498 797 1,088 1,511 1,438 510 5,922 3,896 2,026 412 September. . . 490 518 971 903 1,516 L ,477 548 6,009 3,959 2,049 413 October •. 499 556 1,162 744 1,517 L,476 511 6,050 3,997 2,053 414 November 497 548 1,216 688 1,517 1,483 539 6,066 3,977 2,089 422 December. ..... 532 571 1,109 793 1,512 L,534 579 6,202 4,161 2,041 427 1950—Tanuary 502 571 1 229 627 1,513 1,526 542 6,085 4,058 2,027 423 February ... . 476 539 1,169 471 1,503 L,574 541 5,841 3,844 1,997 432 March 485 534 1,106 444 1,503 I,602 553 5,783 3,812 1,971 443 April 493 530 1,177 402 1,502 L. 630 552 5,843 3,876 1,968 444 May 482 538 1,197 364 1,503 1,648 554 5,847 3,870 1,976 439 Assets Liabilities Canada E (1 n C 0 d a i c n n o h a f a m d m r i t i a l e o n l r i n o e d t d n h o s l b l f o a i a f g r n s u k ) r s e . s re C se a r s v h E e n s tire S ly e lo c i a u n n r i s C ty ana l d o d i O a s a c n t o s h u a e n r n t d s d S a a f u b e n o l b e o c a d r r e a u n o f i n n r r k g a o i s e s d n t m y t Securities a O s t s h e e ts r ci N t r i c o o u t n l e a- e D T x e o c p l t u o a d l s i i n ts g p i D a n y e te a m r b b a le a n n d i k n d C e a T p n o im a s d i e t a s li c a O a b a p t i n h l i d i t e t a i r e l s 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—December... 694 251 1,274 227 4,038 869 26 5,941 3,076 2,865 1,386 1946—December 753 136 1,507 132 4,232 1,039 21 6,252 2,783 3,469 1,525 1947—December 731 105 1,999 106 3,874 1,159 18 6,412 2,671 3,740 1,544 1948—December . 749 101 2,148 144 4,268 1,169 16 7,027 2,970 4,057 1,537 1949—june 734 72 2,195 141 4,396 1,130 15 7,183 2,853 4,330 1,471 July 751 77 2,188 143 4,460 952 15 7,130 2,789 4,341 1,425 August 789 78 2,174 132 4,527 1,035 14 7,298 2,926 4,372 1,407 September. . 789 103 2,304 190 4,463 1,129 14 7,474 3,062 4,412 1,490 October 830 137 2,336 170 4,327 1,142 14 7,441 2,988 4,453 1,488 November . 758 119 2,356 161 4,395 1,084 14 7,388 2,941 4,447 1,471 December ... . 765 133 2,271 146 4,345 1,058 14 7,227 2,794 4,433 1,477 1950—January 745 100 2,263 158 4,365 1,033 1 7,197 2,703 4,494 1,467 February 749 84 2,299 149 4,391 1,046 (3) 7,277 2,741 4,537 1,439 Mi arch 731 83 2,344 146 4,453 1,081 (3) 7,400 2,828 4,573 1,438 A M p a r y il 7 7 5 3 9 0 1 10 0 5 3 2 2, , 3 3 5 4 2 9 1 1 7 9 5 8 4 4 , , 3 4 9 0 8 8 1 1 , , 0 0 1 9 5 1 ( ( 3 S ) ) 7 7, , 4 3 1 0 7 1 2 2 , , 7 8 4 6 1 0 4 4 , , 5 5 6 5 1 7 1 1, , 4 4 9 6 5 8 Assets Liabilities France (4 large banks. End Deposits Other of month figures in Cash Due frorrL Bills di3- Loans Other Own liabilities millions of francs) reserves banks counted assets Total Demand Time ances ca a p n i d tal 1943—December 8,541 4,086 90,908 14,245 1,216 112,843 111,302 1,541 428 5,725 1944—December 10,365 4,948 99,782 18,651 1,521 128,734 ,555 2,179 557 5 977 1945—December. . . 14,733 14,128 155,472 36,621 4,783 215,615 ?1i ,592 2,023 2,904 7,218 1946—December 18,007 18,940 195,223 65,170 17,445 291,945 ?9f>,055 1,890 15,694 7,145 1947—December 22,590 19,378 219,386 86,875 27,409 341,547 33 F,090 3,457 25,175 8,916 1948—December . 45,397 35,633 354,245 126,246 34,030 552,221 S4C,538 6,683 30,638 12,691 1949—May 42,636 36,346 346,974 137,906 44,346 551,958 5441,870 7,088 33,376 22,874 June 39,514 36,995 363,16S 134,226 41,466 562,038 SS*,184 6,854 28,384 24,948 July 46,205 38,626 407,822 124,098 43,852 601,745 59 =,063 6,682 29,700 29,157 August 41,276 36,888 395,351 128,804 45,310 587,137 58C>,010 7,127 29,105 31,387 September.. . 42,358 38,392 402,754 128,343 43,074 595,353 58£5.687 6,666 25,645 33,922 October 41,534 39,301 451,597 120,353 42,724 633,092 626,211 6,881 23,537 38,881 November 38 343 43,810 400,043 134,779 46,063 597,316 589,900 7 416 25 032 40 690 December...... 40,937 42,311 426,69C 129,501 29,843 627,266 619,204 8,062 26,355 15,662 195 o—_ january 39,317 43,107 423,325 138,276 33,866 630,113 622,110 8,003 27,958 19,824 February 36,419 45,579 424,83? 137,143 36,056 632,035 623,031 9,005 29,747 18,252 March 38,741 42,539 415,585 134,771 39,298 619,146 609,776 9,371 30,629 21,158 April 44,808 43,843 452,864 126,752 40,506 652,570 639,878 12,692 31,449 24,752 ept m June and December, when the statements give end-of-month data. 2 Represent six-month loans to the Treasury at 1 Y% per cent through Oct. 20, 1945, and at % per cent thereafter. 3 Less than $500,000. NOTE.—For back figures and figures on German commercial banks, see Banking and Monetary Statistics, Tables 168-171, pp. 648-655, and for description of statistics see pp. 566-571 in same publication. 1090 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE RATES [Averages of certified noon buying rates in New York for cable transfers. In cents per unit of foreign currency] Argentina Australia Brazil Canada (peso) (pound) (cruzeiro) (dollar) Belgium Year or month Prefer- Prefer- (franc) Basic ential ential Special Free Official Free Official Free Official Free "A" "B" 1944 29.773 25.125 322.80 6.0594 5.1469 90.909 89.853 1945 29.773 25.125 322.80 321.17 2.2860 6.0602 5.1802 90.909 90.485 1946........ 29.773 25.125 321.34 2.2829 6.0602 95.198 93.288 1947 29.773 25.125 321.00 2.2817 5.4403 100.000 91.999 1948 29.773 25.125 26*666 321.22 2.2816 5 4 100.000 91.691 1949 ..... 29.774 20.695 23.355 18.591 293.80 1 2.2009 5.4406 97.491 92.881 1949—Aug 29.773 25.125 20.000 321.03 2.2750 5.4406 100.000 95.248 Sept... 29.773 25.125 20.000 274.39 2.1684 5.4406 95.909 92.724 Oct... 29.778 26!695 17.456 13.896 223.16 1.9960 5.4406 90.909 90.431 Nov... 29.778 20.695 17.456 13.896 223.16 1.9980 5.4406 90.909 89.864 Dec... 29.778 20.695 17.456 13.896 223.16 1.9998 5.4406 90.909 88.407 1950—Jan. .. 29.778 20.695 17.456 13.896 223.16 2.0003 5.4406 90.909 89.205 Feb... 29.778 20.695 17.456 13.896 223.16 1.9993 5.4406 90.909 89.820 Mar.. . 29.778 20.695 17.456 13.896 223.16 1.9966 5.4406 90.909 90.254 Apr. . . 29.778 20.695 17.456 13.896 223.16 1.9912 5.4406 90.909 90.205 May. . 29.778 20.695 17.456 13.896 223.16 1.9921 5.4406 90.909 90.110 June. . 29.778 20.695 17.456 13.896 223.16 1.9866 5.4406 90.909 90.456 July... 29.778 20.695 17.456 13.896 211.100 223.16 1,9835 5.4406 90.909 90.766 France Year or Ceylon Co b l i o a m- C slo ze v c a h k o ia - m D a en rk - (franc) G (d e e r u m tsc a h n e y India » Mexico e N rl e a t n h d - s Ze N a e la w nd Norway month (rupee) (peso) (koruna) (krone) mark) (rupee) (peso) (guilder) (pound) (krone) Official Free 1944 57.272 30.122 20.581 324.42 1945 57 014 1.9711 30.122 20.581 "37!933" 323.46 1946 57.020 2.0060 20.876 .8409 30.155 20.581 37.813 322.63 20.176 1947 . . 57.001 2.0060 20.864 .8407 30.164 20.577 37.760 322.29 20.160 1948 ....... 57.006 2.0060 20.857 .4929 .3240 30.169 18.860 37.668 350.48 20.159 1949 27.839 2.0060 19.117 .4671 .3017 27.706 12.620 34.528 365.07 18.481 1949—Aug 30 117 2.0060 20.854 .4671 .3025 30.168 11.569 37.607 398.90 20.158 Sept... 30.117 2.0060 18.177 .4671 .2949 27.247 11.572 32.845 340.95 17.572 Oct.... 20.804 2.0060 14.494 2861 20.823 11.570 26.300 277.30 14.015 Nov.. . 20.850 2.0060 14.494 2862 20.870 11.571 26.295 277.30 14.015 Dec... 20.850 2.0060 14.494 .2862 20.870 11.572 26.289 277.29 14.015 1950—Jan. .. 20.850 2.0060 14.494 .2863 20,870 11.572 26.278 277.29 14.015 Feb 20.850 2.0060 14.494 .2863 20.870 11.572 26.257 277.29 14.015 Mar... 20.850 2.0060 14.494 2863 20.870 11.571 26.267 277.29 14.015 Apr 20 850 2.0060 14.494 .2860 20.870 11.564 26.262 277.29 14.015 May. . 20.850 2.0060 14.494 .2859 20.870 11.564 26.264 277.29 14.015 June.. 20.850 2.0060 14.494 .2856 4 23.838 20.870 11.563 26.265 277.29 14.015 July.. . 20.851 2.0060 14.494 .2856 23.838 20.871 11.571 26.252 277.29 14.015 United Y m e o a n r t o h r R P e ( p h p p i e i u n l s i o b e p ) l - ic ( P es o g c r a u t l d u o - ) ( A S p o o fr u u i n c th d a ) ( S pe p s a e i t n a) S S ( m d e t o e r t l t a n la l i t e r t s - s ) (k S d r w o en n e- a) e S (f r w r l a a i n t n c z d ) - K ( i p n o g u d n o d m ) Ur (p u e g s u o) ay Official Free 1944 398 00 403.50 65.830 53.506 1945 399.05 403.50 403.02 65.830 55.159 1946 4.0501 400.50 9.132 25.859 23.363 403.28 65.830 56.280 1947 4.0273 400.74 9.132 27.824 23.363 402.86 65.830 56.239 1948 4.0183 400.75 9.132 27.824 23.363 403.13 65.830 56.182 1949.. . . 49.723 3.8800 366.62 42.973 25.480 23.314 368.72 65.830 56.180 42.553 1949—Aug... 49.740 4.0169 400.75 46.869 27.823 23.363 402.89 65.830 56.180 Sept... 49.739 3.7862 342.48 41.846 24.003 23.283 344.36 65.830 56.180 Oct... 49.734 3.4875 278.38 32.608 19.333 23.085 280.09 65.830 56.180 Nov... 49.738 3.4810 278.38 32.547 19.333 '23.176 280.08 Dec... 49.687 3.4817 278.38 32.692 19.333 23.289 280.07 65.833 56.180 42.553 1950—Jan. . 49.617 3.4856 278.38 32.717 19.333 23.281 280.07 65.833 56.180 42.553 Feb... 49.615 3.4673 278.38 32.713 19.333 23.264 280.07 65.833 56.180 42.553 Mar.. . 49.613 3.4587 278.38 32.722 19.333 23.269 280.07 65.833 56.180 42.553 Apr.. . 49.613 3.4595 278.38 32.734 19.333 23.286 280.07 65.833 56.180 42.553 May. . 49.616 3.4577 278.38 32.761 19.333 23.291 280.07 65.833 56.180 42.553 June. . 49.625 3.4788 278.38 32.807 19.333 23.138 280.07 65.833 56.180 42.553 July.. . 49.625 3.4539 278.38 32.818 19.333 23.047 280.07 65.833 56.180 42.553 1 An additional rate for "Bank notes" account was certified from Mar. 22 through Nov. 10, 1949. The average for this period was 2.1407 U. S. cents. 2 Based on quotations beginning July 13. 3 Excludes Pakistan, beginning April 1948. 4 Based on quotations beginning June 22. 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 rates and averages for previous years, see BULLETIN for January 1950, p. 123; October 1949, p. 1291; January 1949, p. 101; July 1947, p. 933; and February 1944, p. 209. AUGUST 1950 1091 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 19 1 n ta 2 0 i 6 0 t te e ) d s = C (1 a 1 9 n 0 2 0 a 6 ) d = a M (1 1 9 e 0 3 x 0 9 i ) c = o K U ( i 1 n 1 9 n g 0 3 i 0 0 t d e ) o d = m F (1 r 1 9 a 0 3 n 0 8 ) c = e (1 I 1 9 t 0 3 a 0 8 ly ) = ( a 1 J v 9 a - e 3 1 p r 4 ) a a . - g n 3 e 6 ( J J N u u l = n l e a y e t 1 n h 0 1 1 d e 0 9 9 s r ) 3 3 - 8 9 - S (1 w 1 9 0 e 3 0 d 5 ) e = n (A S u w l g a i . t n z 1 d e 9 r 3 - 9 1926 100 100 2 12* 106 ISO 2 126 1 135 1937 86 85 109 89 94 i 108 114 i 104 1938 79 79 101 100 100 1 102 111 i 100 1939 77 75 103 105 104 2 105 115 104 1940 79 83 103 137 139 121 2 131 146 133 1941 87 90 iio 153 171 136 2 150 172 171 1942 99 96 121 159 201 153 2 157 189 195 1943 103 100 146 163 234 2 160 196 203 1944 104 103 179 166 265 2 164 196 207 1945 106 '04 199 169 375 4 181 194 205 1946 121 109 229 175 648 16 251 186 200 1947 152 129 242 192 989 5,159 48 271 199 208 1948 165 153 260 219 L .712 5.443 128 281 214 217 1949 155 157 285 230 1.917 5,170 204 296 216 206 1949—June 155 156 285 232 1.812 5,215 203 294 216 205 July 154 157 289 229 L, 854 5,034 204 293 215 206 August. . . 153 155 288 230 1.918 4,889 208 293 214 205 September 154 155 294 231 .958 4,910 211 295 216 203 October 152 157 296 237 2,002 4,841 214 297 218 200 November 152 157 294 240 2,005 4,826 213 306 218 200 December 151 157 293 241 2,002 4,747 213 306 219 199 1950—January 152 157 288 245 2,063 4,732 : 224 310 219 197 February 153 158 291 245 2,057 4,759 222 313 220 195 March 153 159 304 245 2,102 4,732 P223 315 220 195 April 153 160 307 250 2,097 M.694 P221 313 22.1 194 May 156 162 307 255 P2.081 315 221 197 Tune . .... 157 165 304 256 P:2,035 P223 196 P Preliminary. 1 Base changed to August 1939 = 100. Figures for 1926, 1937, and 1938 are calculated from old index (July 1914=100). 2 Approximate figure, derived from old index (1913 =100). Sources.—See BULLETIN for January 1950, p. 124; June 1949, p. 754; June 1948, p. 746; July 1947, p. 934; 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 Netherlands (1926=100) (1926=100 (1930 = 100) (July .1938-June 1939=100) Year or month Raw and Fully and 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 fa m p g c a o a t r u o n t r d l u e y s - d fa c m g h c o a t ie u o n f r d u l e s y - d Foods p I r n o tr d d i u a u l s c - ts Foods t p r I r i n o a d l d u u r s c a - w ts p f I i r n n o tr i d d s ia u h u l e s c - d ts 1926 100 100 100 100 100 100 1937 86 86 85 87 84 81 102 112 1938 .... 69 74 82 74 73 78 97 104 1939 65 70 81 64 67 75 97 106 103 112 104 68 71 83 68 75 82 M3 138 121 163 126 1941 82 83 89 73 82 89 146 156 140 177 148 1942 . 106 100 96 85 90 92 158 160 157 175 154 1943 123 107 97 98 9Q 93 160 164 157 174 159 1944 123 105 99 107 104 94 158 170 159 179 163 1945 128 106 100 115 106 94 158 175 172 193 184 1946 149 131 no 124 110 99 158 184 200 282 261 1947 181 169 135 133 131 117 165 207 214 328 276 1948 188 179 151 150 156 140 181 242 231 342 283 1949 .... 166 r16l 147 147 161 142 197 249 243 370 297 1949—June 169 162 146 149 160 142 202 249 233 367 296 Tulv 166 161 145 151 161 142 202 245 233 364 295 August ........ 162 161 145 147 159 142 202 244 230 364 295 September . 163 162 145 146 159 142 201 248 235 366 298 October 160 160 145 146 161 143 210 252 244 376 297 157 159 145 146 161 143 213 255 265 378 303 December 155 156 146 145 16<) 143 212 257 270 372 304 1950—January 155 155 146 144 160 143 214 261 275 • 384 305 February 159 157 146 145 162 143 215 262 282 381 309 March 159 156 146 147 164 144 215 262 279 385 310 April ; . 159 155 146 148 165 144 221 >266 272 385 311 May 165 160 148 150 168 144 225 271 276 386 312 June 166 162 149 152 172 145 224 274 r Revised. Sources.—See BULLETIN for July 1947, p. 934; May 1942, p. 451; March 1935, p. 180; and March 1931, p. 159. 1092 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

PRICE MOVEMENTS IN PRINCIPAL COUNTRIES—Continued R E T A IL F O OD PRICES COST OF LIVING [Index numbers] [Index numbers] United Switz- United Switz- Y m e o ar nth or ( U S 1 = n t 9 a i 3 1 t t 5 0 e e - s d 0) 39 (1 = C 9 a a 3 da 1 n 5 - 0 - 0 3 ) 9 1 K 7 ( d , J i o u n m 1 n g 9 - e 47 F = ( r 1 a 9 1 n 3 0 8 ce 0) ( N 1 = l e 9 a t 3 n 1 h 8 0 ds e - 0) r 3 - 9 1 ( l 9 A e a 39 r u - nd g. = Y m e o ar nth or ( U S 1 = n t 9 a i 3 1 t t 5 0 e e - s d 0) 39 (1 = C 9 a a 3 da 1 n 5 - 0 - 0) 39 1 K 7 ( d , i J o n m u 1 n g 9 e - 47 F = ( r 1 a 9 1 n 38 0 ce 0) ( N 1 = l e 9 a t 3 n 1 h 8 d 0 s e - 0) r 3 - 9 1 ( l 9 A e a 39 r u - nd g. = = 100) 100)1- = 100) 100)i 1941 106 116 168 149 134 1941 105 112 199 150 127 1942 124 127 161 174 153 1942 117 117 200 175 141 1943 138 131 166 224 161 1943 124 118 199 224 148 1944 136 131 168 275 164 1944 126 119 201 285 151 1945 139 133 170 377 164 1945 128 119 203 393 153 1946 160 140 169 645 193 160 1946 139 124 204 645 192 152 1947 194 160 2 101 1,043 211 170 1947 159 136 2 101 1,030 199 158 1948 210 196 108 1.662 228 176 1948 171 155 108 1,632 206 163 1949 202 203 114 1,814 249 174 1949 169 161 111 1,818 219 162 1949-June. 204 203 115 1,715 260 174 1949-June.... 170 161 111 1,726 223 162 July 202 207 116 1,704 251 174 July.... 169 162 111 1,715 219 162 August 203 209 116 1,744 246 174 August. 169 163 111 1,753 216 162 September. 204 207 117 1,835 244 175 September. 170 162 112 1,827 216 162 October. . . 201 205 119 1,901 244 175 October. . . 169 162 112 1,885 217 162 November. 201 203 119 1,930 251 174 November. 169 162 112 1,912 221 161 December. 197 202 120 1 ,937 257 173 December. 168 162 113 1,920 226 161 1950-January... 196 199 120 1,921 262 171 1950-January.. . 167 161 113 1,910 230 159 February.. 195 201 121 1,929 . 270 170 February.. 167 162 113 1,920 234 159 March.... 196 204 121 1,920 274 172 March.... 167 164 113 1,906 237 158 April 197 205 122 1 ,942 273 172 April 167 164 114 1,922 237 158 M av 200 205 125 1,925 276 174 May...... 169 164 114 1,906 237 158 June 205 209 v\ ,858 175 June 170 165 Pl.845 P240 158 P Preliminary. 1 N ew index beginning March 1950. Figures shown prior to that month are calculated from old index (June 1914 = 100). For a detailed description of the new index, which embodies a different composition, method of calculation, and system of weights, see La Vie Economique, January 1950, pp. 2-10, and appendix. 2 This average is based on figures for the new index, beginning June. The averages for the old index, based on figures for January-June 17, are 166 for retail food prices and 203 for cost of living. Sources.—See BULLETIN for January 1950, p. 125; July 1947, p. 935; M ay 1942, p. 451; October 1939, p. 943; and April 1937, p. 373. SECURITY PRICES [Index numbers except as otherwise specified] Bonds Common stocks Year or month S U g t ( n r a h a i t i d t g e h s e e ) d J C ( a 1 = 9 n 3 a 1 5 d 0 a - 0 3 ) 9 2 ( 1 K D 9 U i 2 e 1 n n c i g e = t m d 1 ed b o 0 m er 0) F (1 r 1 9 a 0 38 n 0 ) ce = N l e a t n h ds e a r- ( U 1 S = 9 n t 3 a 1 i 5 t 0 te e - 0 3 d s ) 9 C (1 a = 9 n 3 1 a 5 0 d - 0 3 a ) 9 4 ( K 1 U 9 in 2 n 6 g i = d te 1 o d 0 m 0) 1 (D F 9 r 3 e a c 8 n e = m c 1 e 0 b 0 6 e ) r (1 N 9 l e 3 a t 8 n h = d e s 1 r 6 - 00) Number cf issues. . . 12 (2) 87 50 14 416 106 278 5 295 27 1942 118.3 100.7 127.3 146.4 69.4 64.2 75.3 1943 120 3 102.6 127.8 146.6 91.9 83.5 84.5 1944 120.9 103.0 127,5 150.5 99.8 83.8 88.6 1945 122.1 105,2 128.3 152,1 121.5 99.6 92 4 1946 .. .. 123.3 117.2 132,1 144.6 109,0* 139.9 115.7 96.2 875 1947 i103.2 118.5 130.8 132.0 105,6 123,0 106.0 94,6 1,149 202.2 1948 98 = 7 105.0 129 9 117.0 107,1 124,4 112.5 92.0 1,262 211.2 1949 101.9 107.6 126.5 109.4 106.8 121.4 109.4 87.6 1,129 195.3 1949—July 102.0 106.6 127.1 107.3 107.3 117.8 104,2 84.0 1,122 196.3 August 103.0 107.9 123.6 108.4 107.3 121.8 108.2 84.0 L, 168 204.3 September. ,. 103.1 108.9 122.7 109.3 106.9 123.8 109.6 85.6 1,148 209.6 October 102.8 112.2 121.7 110.5 10S.0 127.3 114.3 88.2 1,110 207.5 November. . . 103.2 112.1 118.9 110.2 108.7 129.1 118.2 86.5 1,042 203 6 December.... 103.7 110.7 121.1 109.9 109.4 132.7 117.9 87.8 1,085 204.6 1950—J F a e n b u r a u r a y ry.... 1 1 0 0 4 4 . . 0 0 1 1 1 1 1 0. . 7 0 1 1 1 1 9 9 . . 8 9 1 11 0 0 9 . . 9 5 1 H 1 O 0 .4 .1 1 13 3 6 5 . . 7 1 1 1 1 1 9 8 . . 0 3 8 8 7 7 . . 7 9 L 1. 5 0 1 3 O 6 7 2 2 0 0 2 4 . . 5 2 March 104.1 110.9 119.4 111.5 109.0 138.8 118.7 88.4 1,045 197.0 April (7) 110.3 119.9 112.3 108.7 141.8 125.9 89.1 1,024 191.0 M av 110.9 119.8 111.7 108.3 146.9 128.7 89.6 1 .019 189.6 Tune ... ... 110.9 121.6 PI10.4 108.0 1,17.7 130.9 90.9 Pi,056 190.8 Preliminary. 1 N ew series beginning 1947, derived from average yields of 12 bonds on basis of a 2% per cent 30-year bond. Annual average for the old series for 1947 (121.5) and figures for years prior to 1947 are derived from average of 5 median yields in a list of 15 issues on basis of a 4 per cent 20-year bond. 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 This index is based on one 15-year 3 per cent theoretical bond. Yearly figures are averages of monthly quotations on the capitalized yield as calculated on the 15th of every month. 8 This index represents the reciprocals of average yields for 14 issues, including government, provincial, municipal, mortgage, and industrial bonds. The average yield in the base period (January-March 1937) was 3.39 per cent. 4 This index is based on 95 common stocks through 1944; on 100 stocks, 1945-1948; and on 106 stocks beginning 1949. 5 In September 1946 this index was revised to include 185 metropolitan issues, 90 issues of colonial France, and 20 issues of French companies abroad. See "Bulletin de la Statistique Generate," September-November 1946, p. 424. 6 This index is based on 27 Netherlands industrial shares and represents an unweighted monthly average of daily quotations. The figure* are not comparable with data for previous years shown in earlier BULLETINS. 7 Series discontinued beginning Apr. 1, 1950. Sources.—See BULLETIN for June 1948, p, 747; March 1947, p. 349; November 1937, p. 1172; July 1937, p. 698; April 1937, p. 373; June 1935, p. 394; and February 1932, p. 121. AUGUST 1950 1093 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM THOMAS B. MCCABE, Chairman MARRINER S. ECCLES R. M. EVANS M. S. SZYMCZAK ERNEST G. DRAPER JAMES K. VARDAMAN, JR. ELLIOTT THURSTON, Assistant to the Board CHESTER MORRILL, Special Adviser to the Board WIN FIELD W. RIEFLER, Assistant to the Chairman WOODLIEF THOMAS, Economic Adviser to the Board OFFICE OF THE SECRETARY DIVISION OF INTERNATIONAL FINANCE S. R. CARPENTER, Secretary ARTHUR W. MARGET, Director MERRITT SHERMAN, Assistant Secretary LEWIS N. DEMBITZ, Assistant Director KENNETH A. KENYON, Assistant Secretary DIVISION OF EXAMINATIONS EDWIN R. MILLARD, Director LEGAL DIVISION GEORGE S. SLOAN, Assistant Director GEORGE B. VEST, General Counsel C. C. HOSTRUP, Assistant Director FREDERIC SOLOMON, Assistant General Counsel JOHN C. BAUMANN, Assistant General Counsel DIVISION OF BANK OPERATIONS ROBERT F. LEONARD, Director OFFICE OF THE SOLICITOR J. E. HORBETT, Assistant Director J. LEONARD TOWNSEND, Solicitor LOWELL MYRICK, Assistant Director G. HOWLAND CHASE, Assistant Solicitor DIVISION OF PERSONNEL ADMINISTRATION DIVISION OF RESEARCH AND STATISTICS FRED A. NELSON, Director RALPH A. YOUNG, Director DIVISION OF ADMINISTRATIVE SERVICES FRANK R. GARFIELD, Adviser on Economic Research LISTON P. BETHEA, Director GUY E. NOYES, Assistant Director GARDNER L. BOOTHE, II, Assistant Director FEDERAL FEDERAL OPEN MARKET COMMITTEE ADVISORY COUNCIL THOMAS B. MCCABE, Chairman WALTER S. BUCKLIN, BOSTON DISTRICT ALLAN SPROUL, Vice Chairman N. BAXTER JACKSON, NEW YORK DISTRICT CHESTER C. DAVIS ERNEST G. DRAPER FREDERIC A. POTTS, PHILADELPHIA DISTRICT MARRINER S. ECCLES SIDNEY B. CONGDON, CLEVELAND DISTRICT JOSEPH A. ERICKSON R. M. EVANS ROBERT V. FLEMING, RICHMOND DISTRICT J. N. PEYTON Vice President M. S. SZYMCZAK J. T. BROWN, ATLANTA DISTRICT JAMES K. VARDAMAN, JR. C. S. YOUNG EDWARD E. BROWN, CHICAGO DISTRICT President CHESTER MORRILL, Secretary S. R. CARPENTER, Assistant Secretary W. L. HEMINGWAY, ST. LOUIS DISTRICT GEORGE B. VEST, General Counsel WOODLIEF THOMAS, Economist JOSEPH F. RINGLAND, MINNEAPOLIS DISTRICT JOHN K. LANGUM, Associate Economist DAVID T. BEALS, KANSAS CITY DISTRICT ALFRED C. NEAL, Associate Economist J. MARVIN PETERSON, Associate Economist J. E. WOODS, DALLAS DISTRICT WILLIAM H: STEAD, Associate Economist JOHN H. WILLIAMS, Associate Economist JAMES K. LOCHEAD, SAN FRANCISCO DISTRICT ROBERT G. ROUSE, Manager of System Open Market Account HERBERT V. PROCHNOW, Secretary 1094 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 Chairman *• President XT' _ T> Bank of Deputy Chairman First Vice President Vice rresidents Boston... Albert M. Creighton Joseph A. Erickson John J. Fogg Alfred C. Neal Harold D. Hodgkinson William Willett Robert B. Harvey 2 Carl B. Pitman E. G. Hult 0. A. Schlaikjer E. 0. Latham R. F. Van Amringe New York... . Robert T. Stevens Allan Sproul H. A. Bilby H. V. Roelse William I. Myers L. R. Rounds H. H. Kimball Robert G. Rouse L. W. Knoke William F. Treiber Walter S. Logan V.Willis A. Phelan R. B. Wiltse Philadelphia. . . . Warren F. Whittier Alfred H. Williams Karl R. Bopp E. C. Hill C. Canby Balderston W. J. Davis L. E. Donaldson Wm. G. McCreedy Robert N. Hilkert P. M. Poorman 3 Cleveland George C. Brainard Ray M. Gidney Roger R. Clouse A. H. Laning 3 A. Z. Baker Wm. H. Fletcher W. D. Fulton Martin Morrison J. W. Kossin Paul C. Stetzelberger Donald S. Thompson Richmond Charles P. McCormick Hugh Leach N. L. Armistead C. B. Strathy John B. Woodward, Jr. J. S. Walden, Jr. R. L. Cherry K. Brantley Watson R. W. Mercer 3 Edw. A. Wayne W. R. Milford Chas. W. Williams Atlanta Frank H. Neely W. S. McLarin, Jr. P. L. T. Beavers Joel B. Fort, Jr. Rufus C. Harris L. M. Clark V. K. Bowman T. A. Lanford J. E. Denmark E. P. Paris S. P. Schuessler Chicago F. J. Lunding C. S. Young Allan M. Black 2 John K. Langum John S. Coleman E. C. Harris H. J. Chalfont 0. J. Netterstrom Neil B. Dawes A. L. Olson W. R. Diercks Alfred T. Sihler W. W. Turner St. Louis Russell L. Dearmont Chester C. Davis 0. M. Attebery Paul E. Schroeder Wm. H. Bryce F. Guy Hitt Wm. E. Peterson William H. Stead C. A. Schacht C. M. Stewart Minneapolis. . . . Roger B. Shepard J. N. Peyton H. C. Core H. G. McConnell W. D. Cochran 0. S. Powell C. W. Groth A. W. Mills 3 E. B. Larson Otis R. Preston Sigurd Ueland Kansas City.... Robert B. Caldwell H. G. Leedy L. H. Earhart John Phillips, Jr. Robert L. Mehornay Henry 0. Koppang Delos C. Johns G. H. Pipkin R. L. Mathes C. E. Sandy 2 D. W. Woolley Dallas J. R. Parten R. R. Gilbert E. B. Austin W. H. Holloway R. B. Anderson W. D. Gentry R. B. Coleman Watrous H. Irons H. R. DeMoss L. G. Pondrom 3 W. E. Eagle C. M. Rowland Mac C, Smyth San Francisco.. . Brayton Wilbur C. E. Earhart J. M. Leisner H. F. Slade Harry R. Wellman H. N. Mangels S. A. MacEachron Ronald T. Symms 3 W. L. Partner W. F. Volberg 0. P. Wheeler VICE PRESIDENTS 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 4 Minneapolis. . . . Helena C. W. Groth Cleveland Cincinnati W. D. Fulton Pittsburgh J. W. Kossin Kansas City.... Denver G. H. Pipkin Oklahoma City R. L. Mathes Richmond Baltimore W. R. Milford Omaha L. H. Earhart Charlotte R. L. Cherry Atlanta Birmingham P. L. T. Beavers Dallas El Paso C. M. Rowland Jacksonville T. A. Lanford Houston W. H. Holloway Nashville Joel B. Fort, Jr. San Antonio W. E. Eagle New Orleans E. P. Paris Chicago Detroit H. J. Chalfont San Francisco... Los Angeles W. F. Volberg St. Louis Little Rock C. M. Stewart Portland S. A. MacEachron Louisville C. A. Schacht Salt Lake City W. L. Partner Memphis Paul E. Schroeder Seattle J. M. Leisner 1 Also Federal Reserve Agent. 2 Cashier. 3 Also Cashier. 4 General Manager. AUGUST 1950 1095 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE PUBLICATIONS- The material listed below may be obtained from MONETARY AND BANKING REFORM IN PARAGUAY. the Division of Administrative Services, Board of Includes translation of laws, accompanying re- Governors of the Federal Reserve System, Wash- ports, and introduction reviewing the monetary ington 25, D. C. Remittance should be made history of Paraguay. July 1946. 170 pages. payable to the order of the Board of Governors $1.00 per copy. of the Federal Reserve System. RULES OF ORGANIZATION AND RULES OF PROCEDURE FEDERAL RESERVE BULLETIN. Issued monthly. Sub- (Board of Governors of the Federal Reserve Sysscription price in the United States and its pos- tem). September 1946. 31 pages. sessions, Bolivia, Canada, Chile, Colombia, Costa THE FEDERAL RESERVE ACT, as amended to Novem- Rica, Cuba, Dominican Republic, Ecuador, ber 1, 1946, with an Appendix containing pro- Guatemala, Haiti, Republic of Honduras, Mexico, visions of certain other statutes affecting the Newfoundland (including Labrador), Nicaragua, Federal Reserve System. 372 pages. 50 cents per Panama, Paraguay, Peru, El Salvador, Uruguay, paper-bound copy; $1.00 per cloth-bound copy. and Venezuela is $2.00 per annum or 20 cents per copy; elsewhere $2.60 per annum or 25 cents POSTWAR ECONOMIC STUDIES. (8 pamphlets) per copy. Group subscriptions in the United No. 1. Jobs, Production, and Living Standards. States for 10 or more copies to one address, 15 No. 2. Agricultural Adjustment and Income. cents per copy per month, or $1.50 for 12 months. No. 3. Public Finance and Full Employment. FEDERAL RESERVE CHARTS ON BANK CREDIT, MONEY No. 4. Prices, Wages, and Employment. RATES, AND BUSINESS. Issued monthly. $6.00 No. 5. Private Capital Requirements. per annum including historical supplement No. 6. Housing, Social Security, and Public listed below, or 60 cents per copy. In quantities Works. of 10 or more copies of a particular issue for single shipment, 50 cents each. (Domestic rates) No. 7. International Monetary Policies. No. 8. Federal Reserve Policy. HISTORICAL SUPPLEMENT TO FEDERAL RESERVE CHARTS ON BANK CREDIT, MONEY RATES, AND The price for the set of eight pamphlets is $1.25; BUSINESS. 113 charts. March 1950 edition. 25 cents per pamphlet, or, in quantities of 10 or Annual subscription to monthly chart book in- more for single shipment, 15 cents per pamphlet. cludes supplement; single copies, 60 cents each. THE FEDERAL RESERVE SYSTEM—ITS PURPOSES AND In quantities of 10 or more copies for single ship- FUNCTIONS. November 1947. 125 pages. 75 ment, 50 cents each. (Domestic rates) cents per cloth-bound copy; in quantities of 10 BANKING STUDIES. Comprising 17 papers on bank- or more copies for single shipment, 50 cents each. ing and monetary subjects by members of the Paper-bound copies available without charge. Board's staff. August 1941; reprinted March DEBITS AND CLEARINGS STATISTICS, THEIR BACK- 1949. 496 pages. Paper cover. $1.00 per copy; GROUND AND INTERPRETATION. October 1947. 50 in quantities of 10 or more copies for single shippages. 25 cents per copy; in quantities of 10 or ment, 75 cents each. more copies for single shipment, 15 cents each. BANKING AND MONETARY STATISTICS. Statistics of DISTRIBUTION OF BANK DEPOSITS BY COUNTIES, as of banking, monetary, and other financial develop- December 31, 1947. July 1948. 122 pages. As ments. November 1943. 979 pages. $1.50 per of June 30, 1949. December 1949. 122 pages. copy. No charge for individual sections (unbound). REGULATIONS OF THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM. Individual regulations 1A more complete list, including periodical releases and reprints, appeared on pp. 766-69 of the June 1950 BULLETIN. with amendments. 1096 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE PUBLICATIONS REPRINTS 1950 SURVEY OF CONSUMER FINANCES— (From Federal Reserve Bulletin unless preceded by an asterisk) Preliminary summary. April 1950. 2 pages. * THE EQUITY CAPITAL SITUATION. A personal PART I. GENERAL FINANCIAL POSITION AND ECOstatement by Thomas B. McCabe, Chairman of NOMIC OUTLOOK OF CONSUMERS. June 1950. 12 the Board of Governors of the Federal Reserve pages. PART II. PURCHASES OF HOUSES AND System, prepared at the request of a Subcommit- DURABLE GOODS IN 1949 and BUYING PLANS FOR tee of the Committee on Banking and Currency 1950. July 1950. 15 pages. PART III. DISTRIof the United States Senate. Submitted August BUTION OF CONSUMER INCOME IN 1949. August 5, 1949. 7 pages. 1950. 18 pages. METHODS OF THE SURVEY OF CONSUMER FINANCES. July 1950. 15 pages. FINANCIAL POSITION AND BUYING PLANS OF CON- (Other articles on the 1950 Survey will ap- SUMERS, July 1949. October 1949. 10 pages. pear in subsequent issues of the BULLETIN- MEASUREMENTS OF SAVINGS, by Daniel H. Brill. Also, similar survey for 1946 from June-Septem- November 1949. 8 pages. ber 1946 BULLETINS, 28 pages; for 1947 from June-August and October 1947 BULLETINS, 48 NOTES ON FOREIGN CURRENCY ADJUSTMENTS. Nopages; for 1948 from June-September and November 1949. 14 pages. vember 1948 BULLETINS, 70 pages; for 1949 from June-November 1949 and January 1950 BUL- * REPLY OF THE CHAIRMAN OF THE BOARD OF GOV- ERNORS OF THE FEDERAL RESERVE SYSTEM (TO the LETINS, 124 pages.) Questionnaire of the Joint Congressional Com- INDUSTRIAL DIFFERENCES IN LARGE CORPORATION mittee on the Economic Report). November FINANCING IN 1949, by Eleanor J. Stockwell. 1949. 112 pages. June 1950. 6 pages. (Also, similar survey by Charles H. Schmidt. June 1949. 8 pages.) * STATEMENT OF THOMAS B. MCCABE, CHAIRMAN OF RETAIL CREDIT SURVEY—1949. From June 1950 THE BOARD OF GOVERNORS OF THE FEDERAL RE- BULLETIN with supplementary information for SERVE SYSTEM, BEFORE THE SUBCOMMITTEE ON nine separate trades. 37 pages. (Also, RETAIL MONETARY, CREDIT AND FISCAL POLICIES OF THE CREDIT SURVEY—1943, 1944, 1945, 1946, 1947, JOINT COMMITTEE ON THE ECONOMIC REPORT. 1948 from the June 1944, May 1945, June 1946, Presented December 3, 1949. 10 pages. July 1947, July 1948, and June 1949 BULLETINS A STUDY OF INSTALMENT CREDIT TERMS, by Milton with supplementary information.) Moss. December 1949. 8 pages. STATEMENT ON PROPOSED SMALL BUSINESS LEGISLA- TION. Presented by Thomas B. McCabe, Chair- FRENCH EXCHANGE STABILIZATION FUND, by Robert man, Board of Governors of the Federal Reserve Solomon. January 1950. 5 pages. System, before the Senate Committee on Banking and Currency, June 27, 1950. July 1950. 8 INSURANCE OF COMMERCIAL BANK DEPOSITS. February 1950. 5 pages. pages. BRANCH BANKING IN THE UNITED STATES, 1939 and STATEMENT BY THOMAS B. MCCABE, CHAIRMAN, 1949. July 1950. 16 pages. BOARD OF GOVERNORS OF THE FEDERAL RESERVE ESTIMATED LIQUID ASSET HOLDINGS OF INDIVIDUALS SYSTEM ON S. 2822, A BILL "TO AMEND THE FED- AND BUSINESSES. August 1950. 2 pages. ERAL DEPOSIT INSURANCE ACT." February 1950. 5 pages. STATEMENT ON THE DEFENSE PRODUCTION ACT OF 1950. Presented by the Board of Governors of STAFF STUDY ON ASSESSMENTS AND COVERAGE FOR the Federal Reserve System to the Committee DEPOSIT INSURANCE. February 1950. 15 pages. on Banking and Currency of the Senate, and read by Governor R. M. Evans to the Committee FEDERAL RECEIPTS AND EXPENDITURES FOR FISCAL on Banking and Currency of the House of Rep- Year 1951. February 1950. 10 pages. resentatives, July 25, 1950. August 1950. 4 * THE CHALLENGE OF OPPORTUNITY VERSUS SECU- pages. RITY. Address by Thomas B. McCabe, Chairman, DEFENSE LOAN POLICY. An announcement adopted Board of Governors of the Federal Reserve Sys- jointly by National and State Supervisors of banks tem before a seminar group of Life Insurance and other lending institutions. August 4, 1950. Executives. Presented April 13, 1950. 7 pages. August 1950. 1 page. AUGUST 1950 1097 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 BOUNDARIES OF FEDERAL RESERVE DISTRICTS BOUNDARIES OF FEDERAL RESERVE BRANCH TERRITORIES BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM FEDERAL RESERVE BANK CITIES FEDERAL RESERVE BRANCH CSTSES OCTOBER 1.194$ BOARD OF GOVERNORS OF THE FEDERAL RESERVE Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis