Federal Reserve Bulletin, 1951-09

F E D E R AL E S E RV BULLETIN 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 Saving in the Defense Economy. 1053-1057 Status of the Voluntary Credit Restraint Program. 1058-1060 1951 Survey of Consumer Finances: Part IV. Distribution of Consumer Saving in 1950. 1061-1078 Current Events and Announcements, . 1078 The Current Position of Agriculture.... 1079-1089 The Balance Sheet and Current Financial Trends of Agriculture, 1951. 1090-1103 Annual Report of the Bank for International Settlements. 1104-1128 Law Department . 1129-1136 United States Government Organization Manual. 1136 National Summary of Business Conditions. . . 1137-1138 Financial, Industrial, Commercial Statistics, U. S. (See p. 1139 for list of tables) . 1139-1199 International Financial Statistics (See p. 1201 for list of tables) . 1201-1219 Board of Governors and Staff; Open Market Committee and Staff; Federal Advisory Council . 1220 Senior Officers of Federal Reserve Banks; Managing Officers of Branches. 1221 Federal Reserve Publications. . 1222-1223 Map of Federal Reserve Districts. 1224 Subscription Price of Bulletin A copy of the Federal Reserve BULLETIN issent 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 37 September 1951 NUMBER 9 SAVING IN THE DEFENSE ECONOMY Abatement of inflationary pressures since nouncing the details of the Drive, the Secre- March has accompanied and been accom- tary stated, "The Drive will directly aid panied by a return to more normal savings financial preparedness for defense, and it patterns on the part of the American people. offers an answer to the question so many In contrast to the excited markets of last people have been asking, 'What can I do to summer, when inflationary pressures were help in this emergency?' . . . The answer rampant despite the low level of defense is that every individual can start his own expenditures, many markets in recent months thrift program, and the period of the Dehave tended to be sluggish even though de- fense Bond Drive is an excellent time to fense expenditures have been mounting begin such programs. . ." rapidly. Several factors have contributed to this contrast. One of the most important THE PLACE OF SAVING is the fact that consumers, after the earlier AS AN ANTI-INFLATIONARY WEAPON period of scare buying, have returned to Avoidance of inflationary pressures in the more traditional patterns of thrift. current defense period can be accomplished This illustrates the key role of saving and only by restricting nondefense demand for thrift in the maintenance of the value of goods and services sufficiently to bring it into the dollar in this country during the defense line with the volume of goods and services build-up ahead. Avoidance of inflation over available after defense requirements have the long run depends essentially on a three- been met. Basically, this must be done by repronged approach—pay-as-we-go on defense stricting or immobilizing purchasing power expenditures, credit restraint, and saving. A for nondefense buying. Direct controls, high level of current saving and retention of such as price and wage controls, can also past savings by individuals, together with be useful in smoothing the transition to a careful conservation of these funds for essen- defense economy and as a backstop against a tial uses, are as necessary in an adequate rapid inflationary run-up, especially in areas program of inflation restraint as anti-infla- where defense demands hit particularly tionary Government fiscal, credit, and other heavily. policies. Measures for curbing the total volume of The United States Treasury is currently spending for nondefense purposes include conducting a nationwide Defense Bond primarily restrictive fiscal action, credit con- Drive to stimulate interest in individual trols, and promotion of permanent saving thrift and to promote the use of regular bond and their conservation for essential purposes. purchase plans for systematic saving. In an- Each is important and necessary to a suc- SEPTEMBER 1951 1053 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SAVING IN THE DEFENSE ECONOMY cessful program for preventing inflation in during the current defense period will dethis defense period. pend on the will of the people to save and to On the fiscal side, the United States Gov- retain savings already accumulated as well as ernment ended the first full year of the on a vigorous program of fiscal and credit Korean effort with a large cash surplus. The restraint. The need for funds to finance the Treasury collected in tax revenues and other defense build-up will not be confined to the cash receipts 7.6 billion dollars more than it requirements of the Treasury. For some time paid out for goods and services and for other to come there will have to be large expendipurposes. This surplus arose in part from tures for private plant and equipment for higher tax payments due to the sharp expan- defense purposes. These outlays will have to sion of incomes, which reflected both in- be financed in part by borrowing or by raiscreases in output and employment and the ing equity capital, since internal sources of inflation of prices after Korea. The surplus business funds — retained earnings and dealso reflected, however, two timely and sub- preciation allowances—will not be fully stantial increases in tax rates as well as cur- adequate. In addition there will be a demand for investment funds for a variety of nontailment of Government programs not defense purposes. closely related to defense. The budget outlook for the present fiscal year, however, is Prevention of inflation will thus require less favorable. If Government outlays are to a willingness of the people to save and be matched by receipts as defense outlays careful conservation of the savings that are expand, substantial further tax increases will available. If genuine savings are not supbe necessary. ' plied and used to finance the investment essential to establish security, then this invest- Credit restraints curb private demand for ment will have to be financed to a disproporgoods and services by limiting additions to tionate degree by resort to the credit facilities current buying power from credit expansion. of the banking system, which would lead to The program of credit restraint that has been an undue expansion of the total money developed during the defense period rests supply. This process would result in a rise on three kinds of measures. General credit in prices faster than in incomes of the bulk instruments — open market operations, of consumers, who would be forced to restrict changes in reserve requirements, and changes their consumption. A balance between saving in the Federal Reserve discount rate — have and investment demands would thus be been used to curtail the total volume of credit achieved through the "vicious spiral of inavailable. Selective credit measures, which flation" rather than through voluntary saving are designed to discourage borrowers in parby individuals and the curtailment of investticular credit areas, have been applied to rement programs to those most essential to the strict loans for buying consumer durable public welfare. goods and new houses and for purchasing or carrying securities. Voluntary credit restraints CHANGES IN TOTAL PERSONAL SAVING have been developed through a program in which all major lending groups are cooperat- Statistically, the dollar amount of current ing voluntarily to curtail lending for non- personal saving is measured by the excess of essential purposes. current personal income after taxes over cur- Avoidance of further inflationary pressures rent expenditures for consumer goods and 1054 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SAVING IN THE DEFENSE ECONOMY services. As thus measured, personal saving An increase in the dollar amount of peramounted to about 12 billion dollars in 1950. sonal saving is not in itself necessarily anti- Saving was at an annual rate of less than 5 inflationary. The effect depends on what billion dollars during the third quarter, how- forms the savings take, as is discussed below. ever, and following an increase in the late months of the year dropped sharply again in ANTI-INFLATIONARY SIGNIFICANCE OF VARIOUS the first quarter of 1951, as is shown in the FORMS AND USES OF SAVINGS chart. The sharp fluctuations in total per- Savings can be held or used in many differsonal saving since mid-1950 have reflected ent ways. They may be invested in capital primarily waves of scare buying as many assets, either directly such as in housing or consumers drew on past savings or increased personal business enterprise, or indirectly such as through the market for corporate PERSONAL INCOME, CONSUMPTION, AND SAVING Annual Rates securities. Savings may be held in the form Billions of Dollars of accumulated cash balances in demand deposit accounts or as currency holdings. They may be channeled into savings institutions through increased ownership of dollar claims such as savings deposits or shares, or through the building of equities in pension funds, annuities, or life insurance. Savings may also be kept in savings bonds or other kinds of Government securities. Each of these major kinds of savings has a different significance from the standpoint of inflation restraint. Personal saving invested directly in capital assets may have little anti-inflationary value and may actually contribute to inflationary pressures, especially in the short run. New housing construction and inventory accumu- 1950 1951 lation by noncorporate businesses and Department of Commerce quarterly estimates, adjusted for seasonal variation. Latest figures shown are for second quarter farmers, for example, are included in the personal saving total, and these may at times their instalment indebtedness in the several have an inflationary impact. On the other months following the outbreak of hostilities hand, savings of businessmen or farmers that in Korea and to some extent again in early are used to buy equipment needed to expand 1951 after the intervention in Korea by the output of essential goods and services, or Chinese. In the second quarter of 1951 per- savings used to buy corporate securities sonal saving rose to the high annual rate of issued to finance such investment, are likely 21 billion dollars. This increase reflected a eventually to have anti-inflationary value. further growth in disposable income of in- Accumulations by individuals of currency dividuals and a sharp curtailment in spend- or demand deposits over a particular period ing for consumer goods. may represent genuine personal savings, or 1055 SEPTEMBER 1951 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SAVING IN THE DEFENSE ECONOMY they may be additions to holdings of cash the Government defense budget is kept on a working balances called for by an expansion pay-as-we-go basis, such funds would be in incomes and economic activity. They are available to the Treasury for retiring shortthus a form of personal saving of uncertain term debt held by the banking system and economic significance. Such funds may actu- particularly by the Federal Reserve Banks. ally be in the process of active current use, Replacement of that debt by savings bonds is passing from one holder to another, thus in- a debt management move that is anti-inflacreasing inflationary pressures. Or they may tionary in that it operates to contract the money supply and to restrain lending by be held awaiting disbursal, heightening commercial banks. Should there be a Govthe threat of immediate inflationary presernment deficit, its inflationary effect could sures. If the funds are held idle, however, be substantially offset to the extent that it and if they do not cause their holders to was financed out of genuine long-term savspend more freely out of future income or ings. past savings, such accumulations are at least temporarily anti-inflationary. It was the ex- RECENT SAVINGS TRENDS perience of World War II and the postwar Recently there has been an increase in period, however, that accumulations of funds certain forms of savings with potential antiin the form of demand deposits and currency inflation significance. Time deposits at comtend to return to the active money stream mercial and mutual savings banks were exwhen attractive spending opportunities arise panded 700 million dollars in the second and may become highly inflationary. Alquarter of 1951, as is shown in the table. This though genuine savings held in this form are growth, which was larger than that of the anti-inflationary in the short run, they may corresponding period of other recent years, complicate the problem of avoiding inflation followed a 9-month period of net withover a sustained period of time. drawals or small increases. There was a fur- Savings placed in savings accounts at com- ther increase in savings deposits during July. mercial and mutual savirigs banks, savings and loan shares, pension funds, annuities, SAVING IN SELECTED FORMS and life insurance tend to be more perma- [Changes in amount outstanding, in millions of dollars] nent additions to the supply of long-term Time deposits Total, Savings capital. Savings used to repay outstanding Period selected and savings Com- Mutual loan debts to these institutions likewise add to forms mercial savings shares banks banks the current supply of loanable funds. It is 1949—1st Q +933 + 196 +313 +424 important, however, that these savings be 2nd Q +933 +292 +232 +409 3rd Q +164 — 192 +168 +188 conserved by the savings institutions to give 4th Q +644 +46 +173 +425 first priority to essential uses. This is the ob- 1950—1st Q + 1,228 +354 +427 +447 2nd Q +933 +219 +223 +491 jective of the cooperative effort of major 3rdQ -546 -519 -23 -4 4th Q +777 +114 +110 +553 lending groups under the Voluntary Credit 1951—1st Q +282 -114 +90 +306 2nd Q +1,321 +400 +300 +621 Restraint Program. Nine months ending: Savings bonds or other Government secu- March 1950 +2,036 +208 +768 +1,060 March 1951 +513 -519 +177 +855 rities purchased by individuals are a form of NOTE.—Accumulation of interest is included as new savings. saving with special anti-inflationary value. If Estimates for changes in time deposits in 1951 are preliminary. 1056 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SAVING IN THE DEFENSE ECONOMY Savings and loan shares have also ex- Korea and the intervention by the Chinese panded sharply in recent months. This sav- communists in the Korean fighting. Many ings form, which has grown rapidly in im- of those who interrupted their current saving portance in the last few years, showed net programs or used accumulated savings to withdrawals only in July of last year. buy greatly in advance of their needs may Growth in the first quarter of 1951 was at a regret that action in the light of subsequent slackened rate, however, reflecting heavy market developments. They have seen that withdrawals in January presumably in con- markets can move two ways as prices of nection with the scare buying of consumer many consumer goods have reacted downgoods in that period. In the second quarter ward in recent months. Supplies of certain of this year shares increased by a record articles that were expected to become scarce amount. have actually expanded so much as to glut Contractual saving through pension plans the market temporarily. Confidence that the and with life insurance companies has been value of the dollar can be maintained has maintained at a high level and has even instrengthened. Whether inflation is avoided creased somewhat since mid-1950. In 1950 in the future will depend on the adequacy of saving by individuals through life insurance saving and on the administration of those and annuities was 4.3 billion dollars, and funds by savings institutions, as well as on saving through private pension funds probthe adequacy of the effort for avoiding, or at ably amounted to about 2 billion. There is least limiting, Government deficit financing, also a large volume of loanable funds becomand on the success in curbing credit expaning available currently to savings institutions through contractual repayment of mortgage sion. and other debt by individuals. The large in- DEFENSE BOND DRIVE stitutional investors as a group have been investing more in mortgages and corporate A Defense Bond Drive is now under way. securities than they have been receiving cur- Volunteers from labor, management, agrirently and have sold Government securities. culture, finance, education, and other sectors In recent months, however, such sales of of American life are joining to urge in- Government securities have been substan- creased participation in this aspect of the tially curtailed. defense program. The immediate focus of the Drive is on encouraging regular and sys- SAVINGS OUTLOOK tematic purchases of Defense Bonds through Prospects are good that saving in anti- the Payroll Savings Plan or the Bond-Ainflationary forms will continue at a high Month Plan. Its broader purposes, however, level, at least if a strong inflationary trend are to extend the distribution of public debt does not develop. Usual savings patterns are ownership and to mobilize the power of inbeing re-established following the spending dividual thrift and saving behind the nasprees after the outbreak of hostilities in tional defense effort. SEPTEMBER 1951 1057 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATUS OF THE VOLUNTARY CREDIT RESTRAINT PROGRAM SEPTEMBER 11, 1951 At a meeting held in Washington on Septem- signed to set forth principles by which the approber 5, 1951, the National Voluntary Credit Restraint priateness of proposed financing may be appraised. Committee concluded that the Voluntary Credit Bulletins have been issued covering inventory Restraint Program is achieving significant results. financing, financing of business capital expendi- The feeling among the members of the Committee tures, borrowing by State and local governments, was that the underlying inflationary potential in loans on real estate, international financing, and the economy is very real and that a continuing loans on stocks and bonds. The general objective policy of restraint on the extension of less essential of these bulletins is to limit financing to defense, credit is appropriate under the circumstances. The defense-related and essential civilian activities, and Committee also scheduled a joint meeting of the to encourage the postponement of less essential chairmen of the 43 regional committees and the financing and of financing which is not related to National Committee for October 15 and approved an increase in production. the wider distribution of digests of opinions ren- The regional committees are the sinews of the dered by the various regional committees. Voluntary Credit Restraint Program. They are Since the Voluntary Credit Restraint Program the groups to which lending institutions refer loan was originally conceived and initiated as an anti- applications in case they have some question as to inflation measure, the Committee appraised the Pro- whether proposed financing is in accord with the gram against the background of recent economic Principles of the Program. As of today, 43 regional trends and the economic outlook. It is not possible committees have been established and close to 375 to measure in quantitative terms the factors that representatives of lending institutions have been have contributed to the lull in general business ac- enlisted in the Program either as members of comtivity and to the declines in some commodity prices mittees or as alternates. Represented on the Nain recent months. Doubtless many factors are in- tional Committee and on the regional committees volved including the apparent improvement in the are commercial and savings banks, life insurance military situation in Korea, some waning of the companies, investment bankers, and savings and war psychology which was so prevalent a year ago, loan associations. The Committee members take a decline in consumer buying from the record their responsibilities seriously and the minutes of levels of the "scare-buying" days, abundant crops the various regional committees indicate that reof important agricultural commodities, increased quests for opinions are processed with facility. taxes enacted last year, the imposition of some In the Program a conscious effort has been made measure of restraint on wage and price increases, to avoid the promulgation of elaborate and detailed and the great productive power of American in- rules and regulations. Rather, the intention has dustry which permitted the accumulation of record been to present the objectives of the Program and levels of business inventories. While recognizing some broad general principles for the guidance the importance of these underlying factors, the of the regional committees, relying upon them to Committee was of the opinion that developments adopt a realistic point of view in passing on loan in the credit field, including the Voluntary Credit applications within the spirit of the Program. This Restraint Program, have also made an important policy has worked out satisfactorily. While some contribution to the recent easing of inflationary minor differences of opinion are unavoidable among pressures. the committees, a review of the opinions submitted During the normally slack summer months, the to the National Committee discloses a remarkable Program has been quietly but effectively expanded degree of uniformity of thought and judgment. in coverage and increased in effectiveness. The Na- It is quite impossible to measure statistically the tional Committee, which is largely concerned with effect of the Voluntary Credit Restraint Program policy matters, has issued a series of bulletins de- upon the volume of outstanding bank credit or 1058 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATUS OF THE VOLUNTARY CREDIT RESTRAINT PROGRAM, SEPTEMBER 11, 1951 upon the volume of mortgage and security financ- panies have dropped somewhat in recent weeks. ing, or to guess what might have developed in these In interpreting these trends in the credit field, it fields in the absence of the Program. The Program is important to keep in mind that the purpose of is only one of the credit measures operating dur- credit policy in general, and of the Voluntary Credit ing the period, and it must be recognized that Restraint Program in particular, has not been to underlying economic and business trends are of prevent the use of private credit. In a period when primary importance in determining the need for less than 15 per cent of the production in the econcredit. Nevertheless, there is evidence that the omy is going for military purposes, there will con- Program and the other credit measures are having tinue to be a substantial need for credit to finance their effects. The commitments of the life insur- the civilian economy. The objectives of credit ance companies have been declining slowly but measures are not to prevent the necessary and deconsistently in recent months. In commitments to sirable use of credit, but to attempt to stop the business firms, declines are evident in commitments use of credit for speculative purposes, to channel for nondefense purposes, while some rise is notice- credit into defense and defense-supporting activiable in the case of defense and defense-supporting ties, to reduce the credit made available for postactivities. The commitment data will only gradu- ponable and less essential civilian purposes, and to ally show the effects of the Program, since a large engender a more cautious and careful lending polbacklog of such obligations was outstanding when icy on the part of lending officers. The Voluntary the Program was initiated. Credit Restraint Program is making an important The investment banking committees have screened contribution to the attainment of these objectives. a large number of proposed security issues, in- Perhaps the single most important contribution cluding corporate and State and local government of the Program is that it has given lending officers issues. A substantial volume of financing has been new benchmarks to use in their appraisal of loan postponed as the result of adverse findings by the applications; it has broadened their horizon beregional committees; in other cases, the regional yond the fairly limited objective of appraising the committees have been able to obtain reductions in credit-worthiness of a prospective borrower; it the size of proposed issues before granting their has made them increasingly aware of the importance approval. While no data are available as to the of credit policy in an economic stabilization proamounts involved, it is generally known that a gram; and it has contributed to prudence in lending. good many other pieces of proposed financing were Equally important, these have been achieved withdropped or postponed before being presented to out shutting off the supply of credit to borrowers the regional committees because of the belief that with needs in accord with today's part-defense, parta favorable decision would not be forthcoming peacetime economy, and without imposing upon from the committee. lending operations a burdensome harness of de- In contrast with the rapid expansion which be- tailed and specific rules and regulations. This has gan in mid-1950, bank loans have evidenced little helped to reduce the injustices and inequities which change in recent months, notwithstanding an in- are inescapable in a series of detailed regulations, crease in lending for defense. Real estate loans no matter how carefully drawn, and has preserved have continued their gradual ascent, but at a slower the flexibility of movement required by financial rate than prevailed some months ago. In the case institutions if they are to serve the needs of the of loans to business, the seasonal repayment of economy. loans by commodity dealers and food processors was The National Voluntary Credit Restraint Comof substantial proportions this spring and early mittee believes that the threat of inflation has not summer. Loans to defense and defense-supporting been removed, although it is not possible to predict activities have risen rather steadily throughout the when the next upsurge in inflationary pressures year. Since the end of July, the volume of busi- will occur or what proportions it may assume. ness loans has increased, due, in part to the be- Business inventories are at peak levels and the presginning of the usual seasonal rise in loans to com- sure to reduce them still continues. The producmodity dealers and food processors as well as to tive capacity of the country is tremendous and a continuing volume of new lending for defense the record levels of plant and equipment spending purposes. However, loans to sales finance com- are augmenting that capacity month by month. SEPTEMBER 1951 1059 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATUS OF THE VOLUNTARY CREDIT RESTRAINT PROGRAM, SEPTEMBER 11, 1951 Nevertheless, it is not clear that production can be view of the National Voluntary Credit Restraint increased sufficiently fast to cover the increased Committee that the economic outlook warrants takings for military equipment that are in prospect, continued emphasis upon the need for prudence, without some reduction in supplies available for care, and caution in the extension of credit, and the civilian market. Defense spending is rising continued emphasis upon the limitation of credit to rapidly and a growing percentage of our defense defense, defense-supporting and other essential outlays is going into "hard" goods for which basic purposes. materials are short. This rise in defense spending, At the joint meeting of the National Committee with unemployment already at very low levels, poses and the chairmen of the 43 regional committees the prospect of continuing upward pressures on scheduled for October 15, 1951, the course of the wage rates and increases in personal income. Busi- Program will be appraised in greater detail and ness spending for plant and equipment, at record opportunity will be provided to discuss the queslevels, will remain high for some time to come. tions and problems that have risen in the regional The consumer remains a big unknown in the committees in connection with the Program. Opoutlook. Following the two "scare-buying" waves portunity will be provided to exchange information of mid-1950 and early 1951, consumers reduced and points of view and to bring to the attention of their spending and increased their savings sub- the National Committee such matters of broad polstantially in the second quarter of this year. Cur- icy as are in need of determination. rently, consumers are spending a significantly The National Committee also decided to undersmaller portion of their income than was customary take a wider distribution of the digests of the in the postwar years. But, it is not certain how opinions of the regional committees. Each relong it will be before money will again start to gional committee has provided the National Comburn holes in the pockets of consumers. The large mittee with minutes of its meetings and with a inventories of goods in consumers' hands, resulting record of the decision rendered on each inquiry prefrom the overbuying during the past year, will sented to it. Opinions in selected cases have been gradually disappear with the passage of time. With digested by the staff of the National Committee personal income at record levels, and likely to inand copies of these digests have been provided to crease further, and with large holdings of liquid the members of each regional committee for their assets widely distributed, the basic ingredients for information and guidance. The National Coman upturn in consumer spending are present in mittee has now decided that a wider distribution the economy. Even without adverse developments of these digests would contribute to a better underon the international front, consumer spending is likely to increase; given deterioration in the foreign standing of the Program among financial institusituation, the rise in consumer spending might tions, the press, and the public. Copies of digests assume large proportions. Consequently, it is the should be available within the next few weeks. 1060 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1951 SURVEY OF CONSUMER FINANCES Part IV. Distribution of Consumer Saving in 1950 x Approximately 32 million of the 52 million estimate of net saving or dissaving for each spendspending units in the nation saved some of their ing unit. Units that on balance have increased their incomes in 1950. About 17 million units spent net worth are referred to as positive savers, net more than their incomes while approximately 3 savers, or simply savers, and units that have remillion lived just within their incomes. The aver- duced their net worth are referred to as negative age amount saved was considerably larger than in savers or dissavers. Aggregate saving is the differ- 1949. ence between total saving of the positive savers and total dissaving of the negative savers. As defined in the Survey of Consumer Finances, The proportion of spending units that dissavcd consumer saving is the difference between current declined from 34 per cent of all spending units in income and the sum of current expenditures for 1949 to approximately 32 per cent in 1950, in conconsumption and tax payments. Consumption extrast to the trend toward more frequent dissaving penditures are defined to include not only expendithat had been evident in prior years. The decline tures for nondurable goods and services but also in dissaving reflected widespread increases in inpurchases of automobiles and other consumer come that outweighed increased consumer expendidurable goods except houses, which are regarded tures for automobiles and other consumer durable as capital assets. Expenditures to reduce debt are goods as well as an increase in expenditures for counted as saving and increases in debt are denondurable goods and services. Reduction in the ducted from saving. proportion of dissavers was most pronounced at Since the total amount of current expenditures is income levels below $3,000. not obtained by the survey, and since for some The distribution of net saving among income purposes a direct estimate of saving has numerous deciles (division of the population into tenths acadvantages over a residual figure, total saving is decording to size of income) changed considerably in rived by ascertaining year-to-year changes in cer- 1950 and resumed the pattern that had prevailed in tain types of consumer assets and liabilities. This 1947 and 1948. During 1949 each of the four procedure yields a direct estimate of changes in lower income deciles had net dissaving, but with net worth exclusive of capital gains and losses. improved conditions in 1950 only the lower two Additions to and withdrawals from different types deciles dissaved, and the amount they dissaved was of assets and liabilities are summed to obtain an somewhat smaller than in 1949. As in former years 1This is the fourth in a series of articles presenting the most of the net saving was accounted for by spendresults of the 1951 Survey of Consumer Finances sponsored ing units in the top four income deciles. by the Board of Governors of the Federal Reserve System and conducted by the Survey Research Center of the Univer- Saving through increasing liquid assets was more sity of Michigan. The first article in the series appeared in frequent in 1950 than in 1949, although the frethe June BULLETIN and covered the economic outlook and quency of large increases in holdings declined. The liquid asset position of consumers. The second article, devoted to durable goods expenditures in 1950 and buying proportion of spending units that saved by reducing plans for 1951, appeared in the July BULLETIN. The third consumer indebtedness was larger in 1950 than in article analyzing the distribution of consumer income apthe preceding year, but continued to be smaller peared in the August BULLETIN. A final article analyzing holdings of nonliquid assets will appear in a subsequent than the proportion that dissaved by increasing this issue of the BULLETIN. form of indebtedness. The present article was prepared by Tynan Smith and John A. Frechtling of the Consumer Credit and Finances SAVERS AND DISSAVERS Section of the Board's Division of Research and Statistics. The authors have necessarily maintained a close working Income exceeded consumer expenditures for 61 relationship with the staff of the Survey Research Center at all stages of their work and in their analysis of survey tabu- per cent of all spending units in 1950, leaving them lations have had the benefit of many suggestions from the net savers, and consumer expenditures exceeded in- Center's star?, particularly John B. Lansing and Harold W. come for 32 per cent, leaving them net dissavers. Guthrie. SEPTEMBER 1951 1061 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1951 SURVEY OF CONSUMER FINANCES The remaining 7 per cent of the spending units TABLE 2 neither saved nor dissaved on balance and were COMPARISON OF POSITIVE AND NEGATIVE SAVERS WITHIN zero savers. When compared with corresponding INCOME AND OCCUPATIONAL GROUPS figures for 1949, these proportions indicate a break [Percentage distribution of spending units within groups] in the postwar decline in the frequency of saving Positive Zero Negative and at least a temporary reversal of the postwar in- savers x savers savers 2 Group characteristic crease in the frequency of dissaving. 1950 1949 1950 1949 1950 1949 Savers. Approximately 32 million of the 52 million spending units in the population covered by All groups 61 60 32 34 the survey were positive savers in 1950. Of these Income: Under $1,000 24 36 45 approximately 5 in 10 saved $500 or more and $l,000-$l,999 10 37 41 $2,000-$2,999 2 36 39 5 in 10 saved less than $500. More than one-third $3,000-$3,999 1 32 29 $4,000-$4,999 30 29 of all spending units had net saving amounting to $5,000-$7,499 25 24 at least 10 per cent of their 1950 incomes (see $7,500 and over 13 15 Table 1). Occupation of head of spending unit: In 1950, as in other postwar years, the proportion Professional and semiprofessional 35 29 of positive savers increased progressively from the Managerial and self-employed 1 25 28 lower to the higher income groups. It amounted Clerical and sales 4 31 31 Skilled and semiskilled. . 2 32 34 to only 34 per cent of the spending units with in- Unskilled and service. . . 9 34 36 Farm operator 3 34 42 comes of less than $1,000 and to 87 per cent of Retired 24 34 26 those with incomes of $7,500 or more (see Table 1 Spending units with money incomes in excess of expenditures. 2). In addition to saving more frequently, high- 1 Spending units with expenditures in excess of money incomes. income spending units tended to save larger pro- 3 No cases reported or less than one-half of 1 per cent. portions of their incomes and larger amounts than Tabulations made for the first time this year indid the lower income groups. More than 3 in 10 dicate that about three-fourths of the spending spending units with incomes of $7,500 or more units headed by persons who had full or part ownership of a business during 1950 were positive saved 30 per cent or more of their incomes in 1950 savers and that for other occupational groups the as compared with 1 in every 10 spending units proportion was two-thirds or less. Business ownerwith incomes of less than $5,000 (see Table 3). ship probably increases the incentive to save by TABLE 1 providing a direct investment outlet and in recent years has yielded a relatively high income from POSITIVE AND NEGATIVE SAVING AS A PERCENTAGE OF INCOME1 which to save. This incentive probably applies [Percentage distribution of spending units] to farm operators also, but in 1950 the propor- Positive and negative savers 1950 1949 1948 1947 19462 tion of positive savers was smaller in this group than in any other occupational group except the Positive savers—total . ... 61 60 63 64 65 unskilled and service workers and the retired. Pe 5 rc 0 e a n n ta d g e o v o e f r income saved: 4 3 4 5 6 This probably reflects the large proportion of low 30-49 . . 8 7 8 7 9 incomes among farmers. Among the 60 per cent 20-29 9 8 9 8 10 10-19 16 15 14 14 16 of farm operators who were positive savers there 1-9 24 27 28 30 24 were many who saved relatively large amounts, Zero savers—total 7 6 6 $ 8 and over one-half saved more than $500 in 1950 Negative savers—total 32 34 31 28 27 (see Appendix Table 2). One-half of the farm Dissaving as a percentage of income: operators who saved had saving equal to 30 per 1-9. 13 12 12 11 9 cent or more of their money incomes (see Table 3). 10-24 9 8 8 8 7 25 and over 10 14 11 9 11 Zero savers. About 3 million spending units All cases 100 100 100 100 100 spent their entire incomes and neither saved nor Number of cases 3,415 3,512 3,510 3,562 3,058 dissaved in 1950. This was approximately the same number as in 1949 and 1948. The zero 1 Spending units having negative incomes have been placed with savers were not primarily spending units whose those whose dissaving equaled 25 per cent or more of income. 2 Savings in 1946 do not include interest accrued on Series E withdrawals from savings happened to equal their bonds. 1062 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1951 SURVEY OF CONSUMER FINANCES additions to savings. Rather, for the most part, and small or no holdings of liquid assets. Unthey appear to have been spending units with in- skilled workers were about one-fifth of the zero comes too small to provide a margin for saving or savers and the miscellaneous group, many of whom a basis for incurring substantial amounts of con- are housewives and students, were one-sixth. sumer debt, and with no liquid assets to draw upon. Dissavers. About 17 million spending units or As will be noted later in the discussion of principal 32 per cent of all consumers dissaved in 1950. This forms of saving, nearly all zero savers reported was a reversal of the previous postwar trend toward having no contractual saving and no change in an increasing proportion of negative savers from liquid assets or consumer indebtedness. 27 per cent in 1946 to 34 per cent in 1949. Most of the zero savers had very low incomes. Amounts dissaved by dissavers were on the aver- More than 5 in 10 had incomes of less than $1,000 age smaller than the amounts saved by savers ($740 and nearly 8 in 10 had incomes of less than as compared with $840). $2,000. Nearly one-fourth of the zero savers were Most of the dissavers were in the lower income retired persons, most of whom had low incomes groups, where much of the dissaving was associ- TABLE 3 PERCENTAGE OF INCOME SAVED OR DISSAVED BY SPENDING UNITS WITHIN SPECIFIED GROUPS, 1950 [Percentage distribution of spending units] All cases Posi- Percentage of income saved Nega- in P c e o r m ce e n d ta is g s e a v o e f d Group characteristic tive Zero tive N b u e m r - c P e e n r t savers1 50 and 30-49 20-29 10-19 saverssavers1 10-24 25 and All spending units 3,415 100 61 16 24 32 12 10 10 Income:1 Under $1,000 418 100 34 3 4 5 7 15 30 36 6 5 25 $l,000-$l,999 514 100 53 4 6 5 12 26 10 37 13 13 11 $2,000-$2,999 567 100 59 4 7 7 14 27 5 36 14 11 11 $3,000-$3,999 601 100 67 2 8 8 21 28 1 32 15 10 7 $4,000-$4,999 441 100 70 3 8 13 19 27 1 29 14 11 4 $5,000-$7,499 538 100 75 4 13 14 23 21 25 11 9 5 $7,500 and over 294 100 87 15 19 15 21 17 13 6 4 3 Occupation of head of spending unit:4 Professional and semiprofessional 269 100 65 2 10 9 26 18 () 35 13 12 10 Managerial and self-employed.. 485 100 73 11 16 13 15 18 25 10 8 7 Clerical and sales 477 100 67 2 7 9 20 29 2 31 13 10 8 Skilled and semiskilled 902 100 65 1 5 8 21 30 3 32 15 10 7 Unskilled and service 289 100 52 2 6 8 12 24 14 34 15 14 5 Farm operator 388 100 60 13 18 11 8 10 6 34 6 6 22 Retired 219 100 45 2 4 5 8 26 21 34 7 7 20 Age of head of spending unit:8 18-24 269 100 60 6 14 31 6 34 17 11 6 25-34 711 100 61 7 9 19 23 3 36 15 12 9 35-44 781 100 65 10 9 16 25 4 31 14 8 9 45-54 659 100 63 9 11 19 21 6 31 10 12 9 55-64 540 100 66 10 8 17 26 6 28 9 9 10 65 or over 434 100 46 6 5 10 20 19 35 8 6 21 Family status of spending unit: • Single person: Age 18-44 419 100 63 7 6 17 30 7 30 14 8 Age 45 or over 461 100 49 7 5 12 21 18 33 8 18 Married: Age 18-44, no children under 18. 304 100 56 5 10 18 22 42 18 16 Age 18-44, 1-2 children under 18 705 100 65 9 9 18 24 33 14 10 Age 18-44, 3 or more children under 18 291 100 64 9 11 15 25 31 16 Age 45 or over, no children under 18 756 100 64 9 9 16 25 29 10 Age 45 or over, 1 or more children under 18 391 100 65 10 12 21 20 31 8 15 » Positive savers are spending units with money incomes in excess of expenditures and negative savers (dissavers) are spending units with expenditures in excess of money incomes. 1 Excludes spending units for which income was not ascertained and thus adds to less than 3,415 cases. • No cases reported or less than one-half of 1 per cent. • Excludes spending units for which occupation of head was not ascertained and also spending units headed by housewives, students, unemployed persons, and farm laborers; totals less than 3,415 cases. 6 Excludes cases where age of head of spending unit was not ascertained and thus adds to less than 3,415 cases. • Excludes cases for which family status was not ascertained and thus totals less than 3,415 cases. SEPTEMBER 1951 1063 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1951 SURVEY OF CONSUMER FINANCES SAVING AND DISSAVING WITHIN INCOME QUWiTUES, 1950 ant of these factors may be grouped into six general classes. OUINTILE Percentage of Spending Units Level of income. First, the absolute level of incomes is a major influence upon saving. Spending units with low incomes must spend most of their incomes on necessities and have relatively little opportunity to save. Most of the units in the very low income groups are either zero savers or dissavers in any one year. It is important to note that some of those in the low-income groups in any one year are there because of declines in income. In the high-income groups, a majority of the units are positive savers. There is, however, a substantial proportion of dissavers within the upper income groups each year, primarily because of expenditures for durable goods and emergencies. Changes in income. A second factor influencing saving is changes in income. Changes that appear to be more or less permanent have a different effect from those that are temporary in nature, such as E3 Dissavers those arising from sickness, unemployment, or ated with declines in income. More than 1 in 10 variations in business or farm income. A tempodissavers, however, had incomes of $5,000 or more, rary decline in income is likely to cause either a reand these spending units tended to dissave large duction in saving or dissaving. Aft increase that is amounts, in most cases $500 or more. Dissaving in TABLE 4 this group was usually associated with the purchase of consumer durable goods. POSITIVE SAVERS AS A PERCENTAGE OF ALL SPENDING UNITS HAVING SPECIFIED CHARACTERISTIC AND SPECIFIED Spending units headed by self-employed business- CHANGE IN INCOME1 men and managerial employees had the smallest proportion of dissavers of any occupational group Change in income (25 per cent). Dissaving of $500 or more was substantially more frequent (about 5 ia 10) among Group characteristic cl D in e e - 2 cha N n o ge 3 in S c m re a a l s l e 4 in L c a re r a g s e e * dissavers in the professional, farm operator, and retired groups than among dissavers in other occu- 195019491950 1949 195019491950 1949 pational groups. Dissaving to the extent of 25 per All cases 53 48 59 61 64 66 68 62 cent or more of income was most frequent among Income: farm operators. This reflected in part the "feast Under $1,000 30 22 34 33 33 (6) 39 45 or famine" introduced into farming by local crop $ $2 l, , 0 0 0 0 0 0 - -$ $ 2 l, , 9 9 9 9 9 9 4 5 7 6 4 5 3 1 5 6 1 0 4 6 9 6 5 6 0 2 6 5 0 3 5 6 8 5 4 6 5 0 failures and other sporadic factors, and in part the $ $ 3 4 , , 0 0 0 0 0 0 - - $ $ 3 4 , , 9 9 9 9 9 9 6 6 6 8 6 6 1 3 6 6 7 » 7 73 2 - 6 6 8 7 6 6 9 9 6 7 7 7 ( 7 6 8 ) fact that the survey's definition of income excludes $5,000 and over 71 68 74 78 78 80 83 78 noncash income important to farmers, such as prod- Occupation of head of spending unit: ucts produced and consumed - on the farm and Professional and semichanges in inventories. Ma p n ro a f g e e s r s i i a o l n a a l nd self- (6) (*) 66 71 67 73 (6) (6) employed 56 56 73 68> 82 70 77 82 Clerical and sales 60 51> 63 67 69 68 73 69 CAUSES OF SAVING AND DISSAVING Skilled and semiskilled 65 54 64 68 65 66 66 59 Unskilled and service. 55 46 45 65 55- 62 61 (6) The previous discussion has indicated some of Farm operator 47 42 61 58 66 74 72 74 Retired (•) (6) 46 48 (6) (6) 58 (6) the factors which influence the saving or dissaving of individual spending units. There are numerous 1 Information is furnished only for groups- of 65 or more having specified characteristic and change in income from preceding year. influences which may act singly or in combination 2 Decline of 5 per cent or more; 3 Less than 5 per cent of change. to determine the saving of a particular spending 4 Increase of 5-24 per cent. 5 Increase of 25 per cent or more. unit during any given period. The more import- 6 Not shown since number of cases m less than 65. 1064 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1951 SURVEY OF CONSUMER FINANCES TABLE 5 Changes in prices and taxes. Price changes are a third factor influencing saving. Changes in prices NEGATIVE SAVERS AS A PERCENTAGE OF ALL SPENDING UNITS HAVING SPECIFIED CHARACTERISTIC AND SPECIFIED of consumer goods and services may either offset or CHANGE IN INCOME * reinforce changes in money income. If income remains unchanged and prices rise, the effect upon Change in income saving is similar to that of a decline in income. The impact of price changes upon the saving of Group characteristic cl D in e e - 2 cha N n o ge 3 in S c m re a a l s l e 4 in L cr a e r a g s e e 5 individual spending units varies both because price changes differ from commodity to commodity and 19501949195019491950194919501949 because spending patterns differ among consumers. All cases... 39 44 32 27 31 30 28 31 Changes in income tax rates have an effect upon consumer saving that is in many respects similar Income: Under $1 000 48 58 35 34 29 (6) 36 33 to that of price and income changes. The impact $1,000-$ 1,999 . . 38 48 36 31 38 38 37 34 $2,000-$2,999 45 42 32 30 37 40 30 49 of income taxes also varies among spending units $3,000-$3,999 . . 34 37 33 23 30 30 32 23 $4,000-$4,999 30 35 30 24 32 31 22 (6) because of the progressive increase of rates from $5,000 and over 29 28 25 17 22 17 17 20 low to high incomes. Occupation of head of spending unit: The life cycle. Fourth, the different stages of the Professional and semi* professional (6) (6) 34 23 33 24 (6) (6) life cycle of the family bring significant variations Managerial and self- in saving and dissaving. The changing pattern of employed 42 37 26 21 18 27 21 17 Clerical and sales 34 39 36 25 31 31 22 28 family income is one aspect of this picture and the Skilled and semiskilled 33 40 33 28 31 32 32 36 Unskilled and service. 32 45 30 28 39 34 29 (6) changing pattern of expenditures is the other. Farm operator 43 53 32 34 29 18 24 21 Retired (6) (6) 30 22 (6) (a) (6) (6) Saving by young single persons, while frequent, is generally limited by insufficiency of income. Mar- 1 Information is furnished only for groups of 65 or more having specified characteristic and change in income from preceding year. riage and the setting up of a household are usually 2 3 L D e e s c s l in th e a n o f 5 5 p p e e r r c c e e n n t t c o h r a n m g o e r . e. accompanied by numerous expenditures for durable 4 Increase of 5-24 per cent. goods and a high frequency of negative saving. 8 Increase of 25 per cent or more. 6 Not shown since number of cases is less than 65. After children are born, the frequency of positive saving tends to increase and that of negative saving expected to be sustained may encourage dissaving to decline. Purchases of life insurance and houses through the purchase of durable consumer goods tend to increase the importance of contractual in anticipation of the continued higher level of in- saving at this time. After the children have left the come or may lead to increased saving because the home, there is somewhat less incentive to save and margin of income over outlays for maintaining the usually less income, particularly when retirement previous living standard is increased. A decline in has been reached. At this stage of life, relatively income that is expected to reduce the level of in- low income and limited access to credit tend to income for an extended period may bring a readjust- crease zero saving. These generalizations are illusment of the spending pattern and, therefore, involve trated in Table 3. less dissaving than when the income decline is ex- Unusual expenditures. Large and irregular expected to be temporary. penditures for special purposes, such as the pur- In 1950 there was an increase over 1949 in the chase of an automobile or other consumer durable proportion of savers and a decrease in the propor- goods or expenditures for medical treatment, edution of dissavers among spending units with in- cation, or travel, constitute a fifth factor which come declines (see Tables 4 and 5). Such a change influences saving or dissaving. While such exdid not occur, however, among spending units penditures are associated in part with the life headed by managerial and self-employed persons. A cycle of the family, to a considerable extent they larger proportion of spending units with large in- are independent and merit separate consideracreases in income were positive savers in 1950 than tion. To the extent that such expenditures can be in 1949. Of the units with either no change or a anticipated, saving may be undertaken in advance. small increase in income, a smaller proportion But when the expenditures are made, they usually were positive savers in 1950 than in 1949 and a involve dissaving either by reduction of liquid larger proportion were negative savers. assets or increase of debt, or both. Unless the SEPTEMBER 1951 1065 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1951 SURVEY OF CONSUMER FINANCES purchase or expenditure is offset by positive saving cushion for business losses. The large proportion within the year, the spending unit is classed as a of positive savers among business owners and the negative saver. Approximately 7 in 10 dissavers relatively large amounts saved have been discussed bought consumer durable goods in 1950 as com- previously. Among farm operators the proportion pared with 5 in 10 savers and 3 in 10 zero savers. of positive savers is relatively small and the pro- Over one-half of the spending units that made portion of dissavers relatively large in part because durable goods expenditures of $500 or more in of the extreme fluctuations in income from year to TABLE 6 RELATION OF SAVING TO DURABLE GOODS EXPENDITURES [Percentage distribution of spending units] Amount of expenditure l Saving class None Undei $200 $200-$499 $500-$999 $1,000 and over 1950 1949 1950 1949 1950 1949 1950 1949 1950 1949 Postive savers 2 65 65 68 64 68 60 49 44 41 44 $1 000 and over 12 11 7 7 18 13 20 11 19 21 $500-$999 11 11 15 15 15 12 10 10 7 8 $100-$499 25 24 25 26 26 23 13 16 12 12 $l-$99 17 19 11 16 9 12 6 3 3 7 Zero savers 12 11 6 4 2 1 1 Negative savers * 23 24 26 32 30 39 51 59 56 $l-$99 5 6 8 13 6 9 9 585 3 2 $100-$499 10 9 13 13 17 21 28 23 17 10 $500 and over 8 9 5 6 7 9 14 24 39 44 All cases 100 100 100 100 100 100 100 100 100 100 Number of cases . .. 1,491 1,661 362 473 655 547 364 319 508 491 1 Net of trade-in allowances. 2 Spending units with money income in excess of expenditures. 8 No cases reported or less than one-half of 1 per cent. * Spending units with expenditures in excess of money incomes. 1950 were dissavers, while for the rest of the popu- year and from farm to farm and in part because of lation the proportion was approximately one- the large number of low-income farmers. fourth (see Table 6). Ownership of a business or farm. A sixth factor AMOUNT OF SAVING of importance to saving is the full or part owner- Aggregate saving of consumers amounted to 14 ship of a business or a farm. Such ownership pro- billion dollars in 1950, as estimated from survey vides a direct investment outlet for saving and for data.2 This is a substantial increase from the 9 this reason acts as an incentive to saving. The billion dollar estimate for 1949, and represents a business owner may also wish to save other than reversal of the downward trend in total net saving by investing in his business in order to provide a during other postwar years (see Table 7). The 2 The 14 billion dollar estimate of aggregate saving in in connection with private life insurance and retirement 1950 obtained from the Survey of Consumer Finances differs from the 12 billion dollar personal saving estimate of systems; the Department of Commerce includes only the inthe U. S. Department of Commerce used in the Leading crease in the reserves of life insurance and retirement funds. Article of this BULLETIN both because of a difference in the Furthermore, the personal saving concept of the Department universe covered and differences in definition. The universe of Commerce includes the following items not included, or of the survey is somewhat narrower than that of the Com- included only in part, in the estimate of saving obtained by merce saving aggregate in that the survey excludes non- the Survey of Consumer Finances: depreciation on farm and profit institutions, citizens living outside continental United nonfarm houses, changes in the assets of private trust funds, States, members of the armed forces living on military reser- changes in farm inventories, and changes in personal curvations, residents of hospitals and other institutions, and rency holdings. transient population. Among the chief differences with A more detailed description of survey methods and definirespect to definition are the inclusion by the survey of pay- tions is presented in the Appendix to "Distribution of Conments to Government life insurance and retirement funds sumer Saving in 1948," Federal Reserve BULLETIN, January other than social security payments and all payments made 1950, p. 33. 1066 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1951 SURVEY OF CONSUMER FINANCES TABLE 7 As in previous years, the bulk of net saving was done by spending units in the top four income SAVERS AND DISSAVERS: AGGREGATE AND MEAN SAVING deciles. On balance, there was little saving or dis- Item 1950 1949 1948 1947 saving in the fifth to ninth income deciles. The lowest income decile had a substantial amount of Spending units (millions): negative saving in 1950, but less than in 1949 and All cases 52 52 51 49 approximately the same as in 1948. The net nega- Positive savers 32 31 32 Zero savers 3 3 3 4 tive saving of the lowest income decile year after Negative savers 17 18 16 14 year reflects primarily the inclusion in this group of Aggregate saving (billions of dollars) Positive savers 27 23 24 ••25 spending units with temporary reductions in in- Negative savers -12 -14 -12 -11 come because of business or farm losses, sickness, Net saving of all spending units (billions of dollars) 14 14 or other special circumstances. Mean saving (dollars per spending All major occupational groups increased the unit): amount of their net saving in 1950 as compared Positiye savers 840 750 750 790 Negative savers -740 -790 -800 -760 with 1949. Spending units headed by managerial Mean net saving of all spending employees had the largest relative increase. All units (dollars) 270 180 220 290 age groups except the oldest increased the amount r Revised. of their net saving. NOTE.—Details may not add to totals because of rounding. increase in net saving in 1950 as compared with FORMS OF SAVING AND DISSAVING 1949 reflected both in increased amount of saving Saving, as computed for the survey, includes 20by positive savers and a reduced amount of nega- odd components which are not homogeneous in tive saving by dissavers. their impact on the economy, in their behavior The distribution of total net saving of consumers during fluctuations in economic conditions, or in among the income deciles returned in 1950 to the their influence on consumer allocation of income. pattern of 1948 after the sharp increase in the share For some analytical purposes, groupings of certain of net saving of the top decile and the large increase components of saving are more useful than the in the net negative saving of the lowest income de- sum of all. The survey's procedure of arriving at cile which occurred in 1949, as shown in Table 8. saving by directly obtaining component elements TABLE 8 PROPORTION OF TOTAL MONEY INCOME, POSITIVE SAVING, NEGATIVE SAVING, AND NET SAVING ACCOUNTED FOR BY EACH TENTH OF THE NATION'S SPENDING UNITS WHEN RANKED BY SIZE OF INCOME X Percentage of total accounted for by each tenth Spe b n y d s in iz g e u o n f it i s n c r o a m nk e ed Money income2 Positive saving 3 Negative saving 4 Net saving 5 1950 1949 1948 1947 1950 1949 1948 1947 1950 1949 1948 1947 1950 1949 1948 1947 Highest tenth 29 30 31 33 45 47 45 52 13 9 14 19 73 105 78 77 Second 15 15 15 15 15 15 15 14 10 9 11 11 20 26 19 16 Third 13 12 12 12 10 10 11 8 9 8 9 10 11 13 15 6 Fourth 11 11 10 10 8 8 8 7 7 8 9 10 10 8 6 6 Fifth 9 9 9 9 6 7 7 6 10 10 7 11 4 1 6 3 Sixth 8 8 8 7 5 5 5 5 12 8 9 6 -1 2 4 Seventh . . ... . . .. 6 6 6 6 5 4 4 4 9 9 8 5 1 -4 -1 2 Eighth 5 5 5 4 3 2 2 2 6 9 7 7 (6) —8 —3 — 1 Ninth 3 3 3 3 2 2 2 1 5 7 9 6 2 -6 -5 -2 Lowest tenth 1 1 1 1 1 1 1 19 23 17 15 -16 -35 -17 -11 All cases 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 1 Income and saving data are based on interviews in January-March of the year following the one specified. The figures in this table cannot be used to measure precisely changes in income and saving because of the limited size of the sample. However, it is believed that the data show with reasonable accuracy the nature of certain broad changes in income and saving during these years. The surveys for 1947 through 1949 differ somewhat in their definitions of saving, as discussed in "The Distribution of Consumer Saving in 1949," Appendix I, Federal Reserve BULLETIN-, November 1950. * Annual money income before taxes. • Positiye saving comprises the saving of all spending UP its with money incomes in excess of expenditures. 4 Negative saving comprises the dissaving of all spending units with expenditures in excess of money income. 6 Net saving (plus or minus) is positive saving less negative saving for the combination of all units in each income decile. 6 Less than one-half of 1 per cent. SEPTEMBER 1951 1067 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1951 SURVEY OF CONSUMER FINANCES makes it possible to divide the total saving of the TABLE 9 spending unit into contractual saving, changes in PERCENTAGE OF SPENDING UNITS REPORTING VARIOUS TYPES liquid assets, changes in consumer indebtedness, OF ADDITIONS TO AND WITHDRAWALS FROM SAVING nonfarm business saving, and a miscellaneous category. Additions Withdrawals to saving from saving The survey's data on the various forms of saving Type are subject to response errors and biases, to biases 1950 1949 1950 1949 introduced through difficulty of distinguishing cur- Consumer indebtedness: rent expense from saving, and to the large sam- Increases 26 30 Decreases 18 10 pling errors associated with estimates based on relatively few cases. Certain of the biases are known Contractual saving l. . . 77 77 to be of opposite efTect on total saving although Life insurance: Payment of premiums 72 74 their relative magnitudes cannot be precisely de- Full cash payment received from policy 3 3 termined. Liquid asset holdings: Contractual saving. Participating in a contribu- Increases2 ... 29 26 Decreases ' '31* ' 31 tory retirement plan, contracting for life insurance, Real estate: or incurring mortgage indebtedness with amortiza- Purchases of homes for own use (nonfarm) 5 3 tion requirements in the purchase of real estate Purchases of other real estate (incommits a consumer to saving over a period of cluding farms) 2 2 Mortgages taken out for home years. Payments made as a result of such commit- purchases 4 2 Mortgages on other real estate. . . (3) 1 ments are classified in the survey as contractual Sales of houses, farms, and lots, 4 3 Payments on home mortgages (insaving. Repayment of instalment debt is not in- cluding full payments) 24 17 Home improvements 20 14 cluded in this category since instalment credit con- Retirement funds: tracts are usually of much shorter term than con- Payments to such funds 15 12 tracts involving mortgages, life insurance, and pen- Securities transactions (excluding sion funds. Federal): Increases in holdings 2 2 Contractual saving of the individual spending Decreases in holdings 1 1 unit is somewhat overstated in the survey because Unincorporated business (excluding farmers): the total value of a life insurance premium is classi- Profits left in business 3 2 Business loss . 1 1 fied as saving. As a result, amounts more properly Personal investment in business. . 2 3 Withdrawals of business investcharged to current insurance expense are included ment (4) 1 as saving. On the other hand, interest accruals on Farm equipment purchases 4 4 insurance reserves are not included as saving (or as income). In the case of payments on mortgages, 1 Includes life insurance premiums, payments to retirement funds, and payments on mortgage principal. only the reduction of the principal is included. 2 Excludes cases in which liquid assets increased solely because of interest accrual on U. S. Goverment savings bonds. These In 1950, a larger proportion of spending units cases accounted for about 6 per cent of all spending units in 1950 and 8 per cent in 1949. had contractual saving (77 per cent) than had any 3 Data not available. 4 No cases reported or less than one-half of 1 per cent. of the other types of saving mentioned above (see Table 9). More than 85 per cent of positive savers pational group except the miscellaneous group. and more than 70 per cent of dissavers were con- The difference was especially large at incomes of tractual savers in 1950 (see Table 10). As would less than $3,000. At this level, only one-half of be expected, relatively few zero savers (2 per cent) the farm spending units, in contrast to threehad contractual saving. quarters of the skilled and clerical groups, reported Within each occupational group contractual contractual saving. The lower frequency of this saving was more frequent and amounts saved were form of saving among farm spending units may be larger for the higher income levels than for the result of a reluctance to enter contractual arthe lower (see Table 11). Among occupational rangements because of the instability of their ingroups, however, there were certain differences comes. Provision for life insurance and/or retirein the pattern of contractual saving. Spending ment annuities may be less essential when a farm is units headed by farm operators reported contract- available for sale or as security for borrowing in ual saving less frequently than any other occu- case of emergency, and when older members of 1068 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1951 SURVEY OF CONSUMER FINANCES the farm family continue to draw income from no-nfarm home owners. The previous year's survey farm operations. The third element in contractual indicated that early in 1950 about 25 per cent of saving, mortgage payments, was proportionately farm owners had debt secured by their farms; in less important among farm owners than among contrast, about 45 per cent of nonfarm home owners TABLE 10 FORMS OF SAVING WITHIN SAVING GROUPS [Percentage distribution of spending units within saving groups] Positive savers Negative savers Zero savers Form of saving $500 and over $100-$499 $l-$99 $l-$499 $500 and over 1950 1949 1950 1949 1950 1949 1950 1949 1949 1950 LIQUID ASSETS : Increase 61 59 47 33 28 14 13 13 18 $1,000 and over. 13 14 () r(2) 1 (2) 1 1 5 $500-$999 14 16 (2) 1 2 (2) () 2 $200-$499 14 11 14 14 (2) 1 2 2 2 3 $1-$199 20 18 35 32 2 9 8 8 26 10 No change. 18 18 30 33 50 95 94 34 14 15 57 36 Decrease.. . 21 22 20 20 16 3 3 52 73 67 15 51 $1-$199 7 7 9 10 1 18 4 5 $200-$499 4 8 5 3 2 21 17 9 12 $500-$999 4 3 2 2 8 23 22 20 $1,000 and over 6 2 4 1 5 6 38 30 Not ascertained (*) (2) 5 All cases 100 100 100 100 100 CONSUMER INDEBTEDNESS 3 Decrease 32 19 26 15 10 5 $1,000 and over. 6 4 () (2) () 1 2 $500-$999 9 5 1 (2) () () 1 $200-$499 10 6 9 4 () () 2 1 2 $1-$199 7 4 16 11 9 7 1 4 3 2 No change 56 64 53 62 74 69 98 97 36 39 47 46 Increase 12 16 21 23 16 22 1 2 57 56 45 52 $$ 5 9 14 15 12 15 1 1 25 30 7 6 $ $ $ 5 1 2 , 0 0 0 0 0 0 - - 0 $ $ 9 4 a 9 9 n 9 9 d over. 3 3 1 3 2 2 5 1 1 5 2 1 2 1 1 5 1 1 ( ( * 2 1 > ) 22 9 1 20 5 1 1 9 7 2 1 1 1 1 8 7 Not ascertained.... All cases 100 100 100 100 100 100 100 100 100 100 100 CONTRACTUAL SAVING * None 10 10 13 12 21 17 98 95 30 30 21 28 Some 90 87 88 79 83 2 5 70 70 79 72 $1-$199 34 33 54 47 72 72 1 52 53 45 42 $200-$499 29 25 27 33 5 7 (2) 14 14 24 18 U $ $ $2 5 l n , , 0 0 0 d 0 0 0 e - 0 0 t $ e - 9 a r $ 9 m n l 9 , d i 9 n 9 o e 9 f d e r amount. 1 6 2 9 20 3 2 7 6 (2 5 1 ) ( ( C 2 2 2 2 ) ) ) 2 1 C ( 0 2 9 2 ) 1 ) 3 1 ( ( * 2) 2 > 6 2 2 2 2 7 1 Not ascertained. . . All cases...... 100 100 100 100 100 Number of cases 971 878 671 699 347 433 198 184 611 664 431 483 r Revised. 1 Includes all types of U. S. Government bonds, savings accounts, and checking accounts. 2 No cases reported or less than one-half of 1 per cent. 3 Includes debt arising from instalment purchases of consumer goods and from instalment and single-payment loans granted by banks, small loan companies, and other lending agencies OF individuals. * Includes premium payments on life insurance policies, mortgage payments on residences and other real estate, and payments to retirement funds. SEPTEMBER 1951 1069 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1951 SURVEY OF CONSUMER FINANCES TABLE 11 CONTRACTUAL SAVING IN RELATION TO OCCUPATION AND INCOME, 1950 [Percentage distribution of spending units] Amount of contractual saving Number Occupation and 1950 money income before taxes of cases * All None $ $ 1 1 9 - 9 $ $ 2 4 0 9 0 9 - $ $ 5 9 0 9 0 9 - a $ n 1 d , 0 o 0 v 0 er N t o a t i n a e s d c e 2 r- Professional and semiprofessional: All income groups 269 100 32 32 16 9 Under $5,000 128 100 13 48 29 8 (a) $5,000 and over 134 100 1 12 37 28 20 Managerial: All income ggroups. 235 100 10 27 25 28 10 UUdn der $$550,00000 90 100 17 44 24 13 2 $5,000 and over. 143 100 3 10 25 42 19 Self-employed: All income groups. 250 100 14 41 21 15 8 Under $5,000 132 100 17 53 16 10 2 $5,000 and over. . . 109 100 10 26 28 20 16 Farm operator: All income groups. 388 100 38 45 11 Under $3,000 263 100 47 40 8 $3,000 and over. . . 122 100 18 53 20 Clerical and sales: All income groups. 477 100 14 49 25 Under $3,000 183 100 24 64 9 () $3,000-$4,999 158 100 7 41 35 15 $5,000 and over. . . 129 100 5 28 44 16 Skilled and semiskilled: All income groups. . 901 100 13 51 24 9 Under $3,000 253 100 26 60 10 3 $3,000-$4,999 447 100 9 48 29 11 $5,000 and over. . . 199 100 4 45 36 12 Unskilled *. 289 100 35 51 Other: « All income groups. 587 100 42 39 12 3 Under $3,000 431 100 50 39 8 1 $3,000 and over. . . 147 100 15 35 29 10 All spending units: All income groups. 3,415 100 23 44 20 Under $3,000 1,499 100 38 50 9 2 () $3,000-$4,999 1,042 100 10 46 29 11 $5,000 and over. . . 832 100 6 29 33 20 11 1 Details may not add to totals because latter include cases for which income or occupation was not ascertained. 2 Includes cases for which the presence or the amount of contractual saving was not ascertained. 3 No cases reported or less than one-half of 1 per cent. 4 Includes farm laborers. Since 72 per cent of this group had incomes of less than $3,000 in 1950, a breakdown by income classes was impracticable. « Includes students, housewives, protective service workers, and retired and unemployed persons. had debt secured by their homes. The difference these categories, except for protective service may have been accounted for in part by a decade of workers, have neither the amount nor regularity of relatively high farm income, and in part by the income required for contractual saving, and usually more rapid increase in nonfarm home purchases their positions do not present opportunities to save relative to farm purchases in recent years. contractually. Spending units headed by unskilled workers re- There is little difference with respect to contracported contractual saving less frequently than units tual saving between the managerial, the selfheaded by other employed personnel. The tend- employed, and the professional and semiprofessional ency of unskilled work to be casual as well as rela- groups with incomes below $5,000. At $5,000 or tively low paid may reduce the willingness, ability, more, the frequency of contractual saving was less and opportunity of this group to enter contractual among the self-employed group than among the saving arrangements. Contractual saving was least managerial and professional groups. Findings frequent among spending units headed by students, based on small subgroups indicate that contractual housewives, protective service workers, and un- saving of $500 or more was more frequent among employed or retired persons. Most persons in the managerial group with incomes of $5,000 or 1070 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1951 SURVEY OF CONSUMER FINANCES more (61 per cent) than among the self-employed nounced since 1947. The principal element of at the same income level (36 per cent). The dif- consumer indebtedness as defined by the survey is ference may be accounted for by retirement plans instalment debt arising from the purchase of autoamong the salaried group and by the opportunity mobiles and large household items. All other forms for business investment among the self-employed. of personal debt, except charge accounts and mort- Clerical and sales personnel and skilled and semi- gage debt, are also included. Charge accounts are skilled workers had very similar patterns of con- not covered by the survey and mortgage debt is tractual saving at comparable income levels. In excluded from consumer debt in order to limit this both groups about 95 per cent of the spending units category to relatively short-term debt. with incomes of $5,000 or more saved contractually. The proportion of spending units that increased This was approximately the same proportion as for their total consumer debt during the year declined professional, managerial, and self-employed persons in 1950 and the proportion that reduced this form at the same income level. of debt increased (see Table 12). Spending units in The proportion of spending units having con- the lowest and the highest income groups made use tractual saving did not increase in 1950 but some of consumer credit less often than did spending spending units apparently added to their commit- units in the intermediate income ranges.3 Only ments. Payments into retirement funds and repay- 12 per cent of the spending units with incomes of ments of mortgage principal increased in frequency less than $1,000 and 20 per cent of those with inwhile life insurance premiums remained at about comes of $7,500 or more increased their consumer the same frequency as in 1949 (see Table 9). debt, whereas the percentage for all spending units Contractual saving appears to have a stabilizing as a group was 26. Decreases in consumer debt influence upon total saving. The survey indicates were also less frequent in the income groups menthat spending units with incomes of less than $5,000 tioned above than in the population as a whole. are more frequently net savers in the face of income The consumer indebtedness of more than one-half •declines if they have some type of contractual sav- of all negative savers and about 15 per cent of all ing arrangement. Once it is undertaken there seems positive savers increased during 1950. to be reluctance or inability to discontinue this Liquid assets. The proportion of spending units type of saving, or to draw down or borrow against that reported adding to their liquid assets during the assets accumulated by past contractual saving. 1950 by means other than accrual of interest on Consumer indebtedness. Variations in the propor- savings bonds increased from 26 per cent in 1949 tions of spending units increasing or decreasing their consumer indebtedness and in net changes in 3 See "Purchases of Durable Goods and Houses in 1950 and Buying Plans for 1951," Federal Reserve BULLETIN, July aggregate consumer indebtedness have been pro- 1951, pp. 760-71. TABLE 12 CHANGE IN CONSUMER INDEBTEDNESS OF SPENDING UNITS WITHIN INCOME GROUPS X [Percentage distribution of spending units within income groups] Total Decrease ch N an o ge Increase asce N rt o a t ined Income grouping Number of cases Per cent 1950 1949 1950 1949 1950 1949 1950 1949 1950 1949 1950 1949 All groups.... 3,514 3,512 100 100 18 10 55 '59 26 '30 1 1 Under $1,000 418 479 100 100 8 5 79 74 12 20 1 1 $l,000-$l,999 514 604 100 100 16 10 59 62 24 27 1 1 $2 000-$2 999 567 672 100 100 17 11 53 54 29 34 1 1 $3 000-$3,999 601 615 100 100 21 11 45 55 33 33 1 1 $4,000-$4,999 441 397 100 100 22 15 45 46 32 38 1 1 $5 000-$7 499 538 437 100 100 23 10 49 56 27 33 1 1 $7,500 and over 294 269 100 100 16 6 64 74 20 19 (2) 1 T Revised. 1 Includes debt arising from instalment purchases of consumer goods and from instalment and single-payment loans granted by banks .small loan companies, and other lending agencies or individuals. » 2 No cases reported or less than one-half of 1 per cent. SEPTEMBER 1951 1071 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1951 SURVEY OF CONSUMER FINANCES to 29 per cent in 1950 (see Table 9).4 An addi- 1950. Reduction of liquid assets, however, was tional 6 per cent increased their holdings through not uncommon among savers (about 20 per cent). accrual of interest on savings bonds during 1950. The relation between the ability to save and to dis- There was no change in the frequency (31 per save large amounts is illustrated by the finding that cent) of those drawing down liquid assets.5 14 per cent of all spending units reduced liquid Increases in liquid assets were much more fre- assets acquired through previous saving by $500 quent among savers of $500 or more (61 per cent) or more. Large reductions in liquid assets by than among savers of less than $100 (33 per cent), spending units that were net savers may be acas shown in Table 10. Less than 15 per cent of counted for by purchases of homes, other real the net dissavers had any increase in liquid assets. estate, or securities which were financed by drawing About 50 per cent of the dissavers of less than down liquid assets as well as from current income. $500 and more than 70 per cent of the dissavers Business saving. The frequency of positive nonof $500 or more reduced their liquid assets during farm business saving (defined as profits left in an unincorporated business or privately held corpora- * Liquid assets as defined by the survey comprise all types tion plus personal investment in such enterprises of U. S. Government bonds, checking accounts, savings acminus losses and withdrawals from such businesses) counts in banks, postal savings, and shares in savings and loan associations and credit unions. Currency is excluded. did not change significantly from 1949 to 1950, 5 For a listing of types of liquid assets and a more exten- after declining from 1948 to 1949 (see Table 9). sive discussion of changes in holdings during 1950, see "The Since, on the average, business saving, where there Economic Outlook and Liquid Asset Position of Consumers," Federal Reserve BULLETIN, June 1951, p. 638. is such saving, is much larger than other forms of Survey data permit two estimates of the change during saving, its importance in the aggregate of consumer the year in the aggregate liquid asset holdings of con- saving is much greater than its relatively low fresumers. One is the difference between estimates of current quency (less than 5 per cent) may imply. aggregate holdings obtained in two successive surveys. Since survey estimates of holdings have been fairly stable Allocation of income. By use of survey data rein recent years, though somewhat lower than outside esti- lating to saving along with that referring to inmates, which have also been stable, estimated changes based come, tax liability, and expenditures on durable on the aggregates have agreed on the whole with outside estimates. goods, it has been possible to obtain the major The second estimate of change in aggregate liquid asset outlines of the use of income by consumers. A holdings is derived by working from data regarding necessary qualification is that the data relating to present and year-ago holdings of liquid assets supplied by individual respondents in a single survey. Estimates expenditures on services and items other than durobtained in this manner showed decreases in liquid assets able goods are residuals and are therefore subject of about 3.5 billion dollars in 1947 and about 6 billion in to greater error than the other, directly estimated, each succeeding year. This method of estimating enters the computation of saving. data. TABLE 13 RELATION OF SAVING TO OTHER CONSUMER USES OF MONEY INCOME WITHIN INCOME QUINTILES [Per cent] Expenditure as a percentage of aggregate income of each quintile All spending units Lowest Second Third Fourth Highest quintile quintile quintile quintile quintile 1950 1949 1950 1949 1950 1949 1950 1949 1950 1949 1950 1949 Net saving 8 5 -32 -57 1 -6 1 C1) 7 5 16 16 Federal income tax 2 9 8 1 2 4 4 5 5 7 6 13 12 Automobiles and other selected durable goods3. 11 11 10 16 10 11 12 11 11 10 10 ) Other consumer expenditures4 72 76 121 139 85 91 82 84 75 79 61 63 Total 100 100 100 100 100 100 100 100 100 100 100 100 1 Less than one-half of 1 per cent. 2 Estimated Federal personal income tax liability on income, apart from capital gains and losses. 3 Includes automobiles, furniture, radios, television sets, and household appliances such as refrigerators, ranges, washing machines, vacuum cleaners, home freezers, and other miscellaneous appliances. Expenditures net of trade-in allowances in both years. 4 Covers expenditures for all goods and services not included in selected durable goods (see footnote 2). Includes food, housing, clothing, medical care, other living costs, State and local taxes, recreation, transportation and education, as well as expenditures for durable goods such as floor coverings, jewelry, fur coats, and other miscellaneous items. 1072 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1951 SURVEY OF CONSUMER FINANCES TABLE 14 POSITIVE AND NEGATIVE SAVERS WITHIN INCOME QUINTILES 1 [Percentage distribution of spending units] Spending units ranked All by size of income units All units: 1950 100 1949 100 1948. .. 100 1947 100 1946. 100 1941 100 Highest quintile: 1950 100 1949... 100 1948 1947. 1946 1941 Second: 1950 1949 1948 1947 1946 . 1941 Third: 1950 .. 1949 1948 . 1947 1946 1941 Fourth: 1950 1949 1948 1947 1946 1941 Lowest quintile: 1950 1949 1948 1947 1946 1941 iiii § The findings relate to the disposition of the aggregate income of consumers within income quintiles (division of the population into fifths according to size of income) and should not be interpreted Positive Zero Negative as typical patterns of behavior. Many factors besavers2 savers savers5 side income affect the spending unit's expenditure and saving. The level of income, however, is the 61 7 32 most important factor in influencing the allocation 60 6 34 63 6 31 of income. 64 8 28 65 8 27 The increase in the proportion of consumer in- 62 5 33 come saved in 1950 over 1949 for the entire popula- 7 7 8 8 C4) 2 2 2 2 tion is accounted for, in large part, by the decline 74 26 in dissaving of the two lowest income quintiles 77 23 85 15 (see Table 13). Many of those in the two lowest 80 20 income quintiles in 1949 were there because they 69 1 30 had experienced temporary reversals, such as busi- 100 70 1 29 100 69 1 30 ness losses and unemployment. The general im- 100 67 2 31 100 75 3 22 provement of economic conditions in 1950 reduced 100 69 1 30 the frequency of these temporary reverses and thus 100 63 2 35 reduced the number of spending units that dis- 1 1 0 0 0 0 6 66 4 3 1 3 31 5 saved. The lowest income quintile also reduced 100 68 3 29 the proportion of income used to purchase durable 100 61 3 36 100 66 1 33 goods. 100 57 7 36 The distributions of income, saving, and various 100 50 7 43 100 61 7 32 expenditures among various income quintiles are 100 61 9 30 summarized in Table 15. Supplementary data re- 100 61 10 29 100 57 5 38 lating to saving within income quintiles, the distribution of saving among age and occupational 100 39 23 38 100 37 21 42 groups, and the saving of family units is shown in 100 44 20 36 100 47 24 29 Tables 14, 16, and 17. 100 43 23 34 100 38 19 43 Use of Government insurance dividends. Many spending units include former servicemen who re- 1 Income and saving data for the postwar years are based on the annual Survey of Consumer Finances made in the first quarter ceived sizable dividends on their national service of the year succeeding that for which data are given. The 1941 data are estimated from information obtained from Family Spend- life insurance during 1950. Of the spending units ing and Saving in Wartime (Bureau of Labor Statistics, Bulletin No. 822), April 1945. that received a dividend, about one-third either re- 2 Spending units with money incomes in excess of expenditures. 3 Spending units with expenditures in excess of money incomes. duced their debts, increased their liquid asset hold- 4 No cases reported or less than one-half of 1 per cent. NOTE.—The figures in this table cannot be used to measure ings, or paid taxes from the proceeds. Over oneprecise changes in the relation of saving to income. However, it is believed that the data show with reasonable accuracy the nature half reported using the dividend to purchase goods of certain broad changes in the pattern of income and saving during these years. or services. The remaining spending units in the The 1941 data were obtained by a process of freehand graphic group reported both types of use or were not able interpolation of cumulative frequency distributions based on data for various income size groups. to single out any specific use of their dividends. No The survey covering 1941 and the surveys covering 1946 through 1950 differed somewhat in their definitions of money income, say- information was obtained to indicate the effect of ing, and the spending unit, in the universe covered, as well as in sampling methods. The surveys for 1946 through 1950 also the dividends upon the use of other funds by the differed somewhat in their definition of saving, as discussed in Appendix I to "The Distribution of Consumer Saving in 1949," spending units. Federal Reserve BULLETIN, November 1950, p. 1452. SEPTEMBER 1951 1073 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1951 SURVEY OF CONSUMER FINANCES TABLE 15 DISTRIBUTION OF CONSUMER INCOME AND VARIOUS CONSUMER OUTLAYS, BY INCOME QUINTILES [Per cent] S ra p n e k n e d d i n b g y u s n i i z t e s M b o e n fo ey re in ta c x o e m s e Fed i e n r c a o l m p e e r t s a o x n 2 al D i i n s c p o o m sa e b 8 le e d x u p r S a e e b n l l d e e c i t t g u e o d re o s d * s O e t x h p er e nd co it n u s r u e m s 5 er Net saving of income 1 1950 1949 1950 1949 1950 1949 1950 1949 1950 1949 1950 1949 Highest quintile. . . 44 45 65 68 42 43 42 41 37 38 92 131 Second 24 23 19 17 24 24 25 23 24 24 21 21 Third 17 17 10 9 18 17 19 18 19 18 3 1 Fourth 11 11 5 5 12 12 10 12 13 13 1 -12 Lowest quintile 4 4 1 1 4 4 4 6 7 7 -17 -41 All cases 100 100 100 100 100 100 100 100 100 100 100 100 1 Annual money income before taxes. 1 Estimated Federal personal income tax liability, apart from capital gains and losses. * Disposable income is defined as money income less estimated Federal personal income tax liability. 4 Includes automobiles, furniture, radios, television sets, and household appliances such as refrigerators, ranges, washing machines, and other miscellaneous appliances. Expenditures are net of trade-in allowances. 1 Covers expenditures for all goods and services not included in selected durable goods (see footnote 4). Includes food, housing, clothing, medical care, transportation, recreation, education, and State and local taxes, as well as expenditures for durable goods such a3 floor coverings, jewelry, fur coats, and other miscellaneous durable items. These estimates are residual items and are less reliable than the directly estimated items. TABLE 16 PROPORTION OF POSITIVE, NEGATIVE, AND NET SAVING ACCOUNTED FOR BY AGE AND OCCUPATIONAL GROUPS Proportion of population Positive Negative Net in specified group saving l saving 2 saving J Group characteristic 1950 1949 1948 1950 1949 1948 1950 1949 1948 1950 1949 1948 Age of head of spending unit: 18-24 9 10 11 3 3 4 6 8 10 2 -4 -3 25-34 22 23 21 19 18 19 23 23 27 15 9 12 35-44 22 22 22 28 27 28 23 29 24 32 25 32 45-54 18 18 20 24 24 27 18 18 16 28 33 38 55-64 . 15 14 15 19 19 16 16 11 13 22 31 18 65 or over 13 12 11 6 8 6 14 10 10 (4) 4 2 Not ascertained 1 1 1 1 1 2 1 All cases 100 100 100 100 100 100 100 100 100 100 100 100 Occupation of head of spending unit: Professional and semiprofessional. . 6 7 7 9 12 10 9 12 6 9 12 15 Managerial and self-employed 13 12 12 35 31 31 14 16 17 54 54 45 Clerical and sales 13 13 14 12 10 10 11 8 17 13 14 3 Skilled and semiskilled 30 27 27 21 19 21 21 17 21 20 21 21 Unskilled and service **. 9 12 14 4 5 6 6 6 7 3 3 5 Farm operator 9 10 9 12 15 15 15 20 12 9 7 18 All other 6 20 19 17 7 8 7 24 21 20 -8 -11 -7 All cases 100 100 100 100 100 100 100 100 100 100 100 100 1 Positive saving comprises the saving of all spending units with money incomes in excess of expenditures. 2 Negative saving comprises the dissaving of all spending units with expenditures in excess of money income. > Net saving (plus or minus) is positive saving less negative saving for the combination of all units in each group. 4 Less than one-half of 1 per cent. 5 Farm laborers were classified in the unskilled category in 1949 and in the "all other" category in 1948 and 1950. 6 Includes farm laborers (for 1948 and 1950 only), students, housewives, protective service workers, retired and unemployed persons,. and those for whom occupation was not ascertained. 1074 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1951 SURVEY OF CONSUMER FINANCES TABLE 17 DISTRIBUTION OF POSITIVE AND NEGATIVE SAVERS ACCORDING TO RELATION OF SAVING TO INCOME BY INCOME GROUPS OF FAMILY UNITS, 1950 [Percentage distribution of family units within income groups] Family income groups 1 Positive and negative savers All Under $1,000- $2,000- $3,000- $4,000- $5,000- $7,500 groups $1,000 $1,999 $2,999 $3,999 $4,999 $7,499 and over Positive savers—total 61 30 51 55 66 66 74 86 Percentage of income saved: 4 3 5 4 2 2 3 10 30-49 8 3 5 8 8 8 11 16 20-29 9 4 4 7 7 12 13 15 10-19 17 6 13 13 20 20 23 23 1-9 23 14 24 23 29 24 23 22 6 31 12 6 1 33 39 37 39 34 33 26 14 Dissaving as a percentage of income: 1-9 12 5 11 15 16 16 13 7 10-24 10 4 13 12 11 12 8 5 25 and over 11 30 13 12 7 5 5 2 All cases 100 100 100 100 100 100 100 100 Number of cases 3,029 335 397 420 495 399 595 388 1 Based on 1950 money income before taxes. 2 No cases reported or less than one-half of 1 per cent. 8 Family units with expenditures in excess of money income. APPENDIX ALTERNATIVE DEFINITION OF SAVING The definition of saving as income minus con- assets and liabilities, the question arises as to which sumption is equivalent to the definition of saving items should be included. Its answer requires deas the change in the net worth (total assets minus cision regarding the appropriate distribution of total liabilities) of the spending unit. This formu- outlays between current consumption and saving. lation of the definition suggests the procedure In general, the items in the survey's computation used by the Survey of Consumer Finances in com- of saving include only those usually characterized puting saving. Thus, saving is obtained as the as financial, i.e., dollar claims by or against the sum of changes—apart from capital gains or losses spending unit. Exceptions arise, however, in the —in various items which may be described as com- inclusion of purchases and improvement of real ponents of a consumer's balance sheet. The sum estate as saving items and the sale of real estate of these changes is, of course, equal to the change as a dissaving item. Included as real estate are in net worth. Changes during the year in the liquid homes, which may be characterized as assets diasset holdings of the spending unit, in its short- and rectly useful to consumers rather than as sources long-term indebtedness, in its holdings of corporate of money income or as reserves against emergencies. stocks, and in its other assets and liabilities are ob- Obviously, many other assets owned by contained through the survey interview and combined sumers share the characteristics of homes in furto obtain an estimate of the year's saving of the nishing direct services over an extended period of spending unit.1 time. Therefore, it is not entirely proper to view When calculating saving from changes in various the depletion of liquid assets, the assumption of consumer indebtedness, or the use of income for aFor a complete listing of the component elements enter- the purchase of such items as dissaving items for ing the survey's calculation of saving, see Appendix to "The the year of purchase without recognition of the Distribution of Consumer Saving in 1948," Federal Reserve BULLETIN, January 1950, pp. 33-34. fact that the life and value of the asset will not be SEPTEMBER 1951 1075 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1951 SURVEY OF CONSUMER FINANCES exhausted in that year. Correct accounting pro- original cost by the end of 10 years. Estimates cedure in years following the purchase would in- of year-end values were made for four-door sedans clude as an expense, i.e., an offset to saving, an of the next to lowest price line of each make and amount equal to the decrease in the value of the model-year. Make and model-year of the car (or longer-lived assets as the result of their use during cars) owned by the spending unit were obtained in the year. the survey interview. Spending units owning a Any attempt to carry out in detail the procedure car for only a portion of a year were charged with outlined above soon meets with many obstacles. one-half the depreciation charged for a full year's The items to be included among consumer assets, ownership. the values to be assigned to them, and the rates at Certain limitations imposed by the use of a which they are to be depreciated raise many diffi- simple, practical procedure are obvious. Neverthecult questions. In the calculation of an alternative less, the alternative definition of saving is useful saving concept in the 1950 survey, it was found in furnishing a guide to changes in the economic practicable to take into account only depreciation position of consumers. Obviously, the position of a on homes, purchases and sales of automobiles, and consumer who draws down his liquid assets to buy depreciation on automobiles purchased during the an automobile has not deteriorated to the same year.2 In this survey, depreciation is included for extent as that of one who has used his liquid assets all cars rather than only cars purchased during the to pay for medical expenses. The definition of year. The difficulty of obtaining a fairly complete saving used in the main body of the article does not list of other durable goods and, to an even greater distinguish between these two cases. extent, the difficulty of valuing them argue against Saving, under the alternative definition outlined any attempt to formulate a definition of saving in- above, amounted to approximately 18 billion dolcluding a longer list of assets. It may also be lars, or about 4 billion dollars more than the estiargued that automobiles and homes are unique mate under the standard definition. The inclusion when compared with other durable goods used by of amounts paid for automobile purchases as saving consumers in that markets for them are much items outweighed the effects of depreciation on better organized. automobiles and nonfarm homes. Concentration A summary of the adjustments made to obtain of the amount of saving within the income group the amount of saving by each spending unit under $7,500 or more was somewhat less under the alterthe alternative definition follows. Nonfarm home native than under the standard definition (see Apowners were charged with depreciation equal to pendix Table 1). This is the result of greater disone and one-half per cent of the value they esti- persion of automobile purchases (the dominant elemated for their homes. No depreciation charge ment in the adjustments) than of saving under the was made on homes purchased during the year. standard definition and of greater concentration of Any purchase of an automobile or any sale of one depreciation on houses among the upper income by a spending unit that bought an automobile dur- groups. ing the year was considered as a saving or dis- APPENDIX TABLE 1 saving entry respectively. The amounts involved PROPORTION OF NET SAVING ACCOUNTED FOR BY INCOME were actual dollar amounts obtained in the inter- GROUPS UNDER STANDARD AND ALTERNATIVE DEFINITIONS, 1950 view. Trade-ins were also considered as dissaving items. Sales of cars by spending units that did not Definition buy a car during 1950 were not obtained by the Money income before taxes survey and could not be included as a dissaving Standard Alternative entry. Under $1,000 -16 -14 Depreciation on automobiles bought prior to $l,000-$l,999 * -1 $2,000-$2.999 C1) 3 1950 was considered as 25 per cent of an estimated $3,000-$3,999 10 13 end-of-year, value for cars 12 years or less in age. $ $5 4 , , 0 0 0 0 0 0 - ,$ $ 4 7 , , 9 4 9 9 9 9 2 1 9 5 2 1 9 5 This procedure was based on the assumption that $7,500 and over 63 55 a car's value is approximately 10 per cent of its All cases 100 100 2 Sec Appendix II, "Distribution of Saving in 1949," Fed- Amount of saving (in billions) $14 $18 eral Reserve BULLETIN, November 1950, pp. 1453-55. 1 Less than one-half of 1 per cent. 1076 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1951 SURVEY OF CONSUMER FINANCES APPENDIX TABLE 2 SAVERS WITHIN INCOME AND OCCUPATIONAL GROUPS UNDER STANDARD AND ALTERNATIVE DEFINITIONS OF SAVING, 1950 [As a percentage of spending units within group] Amounts saved All positive savers Groups of spending units $1,000 and over $500-$999 $200-$499 $1-$199 Stand- Alter- Stand- Alter- Stand- Alter- Stand- Alter- Stand- Alterard native ard native ard native ard native ard native All spending units 61 62 15 16 12 13 14 15 By income before taxes:1 Under $1.000 34 28 () () () ( 7 5 27 23 $l,000-$l,999 53 50 2 6 7 15 17 30 25 $2,000-$2,999 59 61 7 8 12 13 16 15 24 25 $3,000-$3,999 67 70 11 12 17 16 20 23 19 19 $4,000-$4,999 69 72 20 19 18 23 17 16 14 14 $5,000-$7,499 75 81 37 37 19 23 10 13 9 $7,500 and over... 87 86 73 74 6 7 6 4 2 By occupation of head of unit:3 Professional and semiprofessional 65 68 27 24 13 18 12 14 12 12 Managerial and self-employed. . . 73 73 39 38 13 17 10 9 10 9 Clerical and sales 67 72 14 18 10 11 21 22 22 21 Skilled and semiskilled 65 69 10 10 17 18 16 19 22 22 Unskilled and service 52 55 7 7 10 11 12 15 23 22 Farm operator 60 62 24 25 12 11 10 14 16 12 Retired 45 32 6 5 2 5 7 3 30 19 1 Excludes spending units for which income was not ascertained. 2 No cases reported or less than one-half of 1 per cent. 8 Excludes spending units for which occupation of head was not ascertained and also spending units headed by housewives, students unemployed persons, and protective service workers. APPENDIX TABLE 3 ZERO SAVERS AND DISSAVERS WITHIN INCOME AND OCCUPATIONAL GROUPS UNDER STANDARD AND ALTERNATIVE DEFINITIONS OF SAVINGS, 1950 [As a percentage of spending units within group] Amounts dissaved All zero All savers dissavers Groups of spending units $l-$99 $100-$499 $500 and over Stand- Alter- Stand- Alter- Stand- Alter- Stand- Alter- Standard ard ard native ard ard native All spending units 32 15 10 By income before taxes:1 Under $1,000 30 18 36 54 7 19 14 18 15 17 $l,000-$l,999 10 5 37 45 10 16 20 21 7 8 $2,000-$2,999 5 4 36 35 7 8 16 17 13 10 $3,000-$3,999 1 1 32 29 6 6 15 13 11 10 $4,000-$4,999 1 1 30 27 5 7 13 13 12 7 $5,000-$7,499 ( 25 19 2 2 8 7 15 10 $7,500 and over 13 14 1 2 5 10 9 By occupation of head of unit:3 Professional and semiprofessional () () 35 32 6 11 11 17 15 Managerial and self-employed. . . 25 26 6 9 11 11 9 Clerical and sales 2 2 31 26 6 13 11 12 9 Skilled and semiskilled 3 2 32 29 7 17 14 11 8 Unskilled and service 14 12 34 33 11 19 17 7 5 Farm operator 6 5 34 33 5 11 14 15 14 Retired 21 11 34 57 22 14 17 16 18 1 Excludes spending units for which income was not ascertained. 2 No cases reported or less than one-half of 1 per cent. 8 Excludes spending units for which occupation of head was not ascertained and also spending units headed by housewives, students, unemployed persons, and protective service workers. SEPTEMBER 1951 1077 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1951 SURVEY OF CONSUMER FINANCES The frequency of dissavers among the whole Among occupational groups, the most striking population was slightly larger under the alternative change was found among the retired, for whom the definition than under the standard definition. Zero frequency of dissaving rose from 34 to 57 per cent savers became less frequent as the result of the ad- as a result of the change in definition. The high justments in definition. No significant shift was frequency of home ownership and therefore of shown in the frequency of positive savers in the depreciation on houses among the retired group whole population. The effects, however, were not accounted for this sharp rise. The retired are uniform throughout all income groups. The adthe only occupational group for which the frejustments increased the frequency of dissaving very quency of dissaving increased as a result of the noticeably in the two lowest income groups but adjustments. In all other occupational groups, decreased it or did not affect it significantly in the except farm operators, there was a tendency toward $2,000 or more income group. The frequency of both positive and zero savers in the two lowest a greater frequency of saving and a lesser freincome groups fell off with the change in definition. quency of dissaving. It should be noted that de- At incomes of $2,000 or more, the frequency of preciation on farms was not included as a dissaving positive savers increased, while that of zero savers entry for farm operators since it properly belongs showed little change. with farm operating expenses. CURRENT EVENTS AND ANNOUNCEMENTS Federal Reserve Meetings The Federal Advisory Council held a meeting in with the Board of Governors of the Federal Reserve Washington on September 16-18, 1951, and met System on September 18, 1951. 1078 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

THE CURRENT POSITION OF AGRICULTURE by PHILIP T. ALLEN Moderation in demand for farm products and fense effort by making the various inflation control prospective increases in supplies—especially of measures less difficult to administer. cotton—have contributed to an easing of prices Expansion in foreign demand for farm products received by farmers this spring and summer. In has contributed to the advanced level of prices for mid-August the average level of prices received foodstuffs in this country. Exports, however, of was 7 per cent below the record reached in Feb- cotton were limited during the 1950-51 season by ruary but still about 20 per cent above the level pre- Federal quotas designed to maintain domestic vailing during the first half of 1950 before the supplies. outbreak of hostilities in Korea. Prices paid by The expanding defense effort and the earlier farmers were up by about three-fifths that amount. rapid advance in farm prices led to various Federal Net incomes of farmers have been maintained at measures to influence agricultural developments, sharply advanced levels since this spring, as have accompanying actions in other areas. Restrictions incomes in most other major sections of the econ- on production were generally removed and a numomy. Farm real estate values have continued tc ber of other steps were taken to expand output. rise sharply to new peaks. Federal price support holdings of a number of Consumer expenditures for foods and prices of major commodities were released to the market. foods have been sustained at record levels since last Under the general price freeze established in winter. Buying of other consumer goods, how- January ceilings were not applicable to farm prodever, has been below the peak rate reached in the ucts until after the initial sale by farmers. Prices summer of 1950 and again last winter and also of meats have remained close to Federal ceilings, low relative to the high level of personal incomes. while cotton, oil crops, and some other farm As a result, large inventories have accumulated products are now substantially below ceiling levels and activity in numerous consumer goods indus- and, with the grains, are close to Federal support tries has been reduced considerably from earlier levels. Support levels, currently a more imporrecord levels. The effect on total activity of cur- tant factor in price developments than last year, tailments in consumer goods industries has been are higher, reflecting the increase in prices paid by about offset by expansion in business plant and farmers, and Federal holdings of some of these equipment and in munitions production and, with products may increase this year. wage rates continuing upward, personal incomes The larger rise in prices received by farmers have risen somewhat further. than in prices paid and the various other factors The sharp expansion in demand for farm prod- which have resulted in a sharp increase in farmers' ucts following the Korean outbreak came at a time net earnings, together with expectations that these when harvests were moderately curtailed and earnings would be sustained, have contributed to smaller carryovers of farm commodities were in a near record rate of advance in farm real estate prospect. Subsequently, however, the advanced values during the past year. An increased preflevel of prices, together with other factors, has erence among some buyers for land as a form of encouraged expansion of farm production, and investment was also evident in farm real estate weather conditions have continued generally fa- developments. vorable this year. Total marketings of livestock High farm incomes and concern over possible have not yet increased but the number on farms is shortages have contributed to a sharp expansion in being expanded at a rapid rate. Larger crops may demand for farm machinery during the past year. result in some small rebuilding of stocks, and more Larger acreage in crops and shortages of labor have adequate stocks would be in keeping with defense added to this demand. Enlarged purchases have preparations in other sectors of the economy. Im- been facilitated by a substantial increase in farm proved supply prospects in agriculture and the debt. Short-term loans of banks and Production moderation in demand have contributed to the de- Credit Associations started to increase rapidly last SEPTEMBER 1951 1079 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

THE CURRENT POSITION OF AGRICULTURE autumn and by the end of June were about 30 stocks were drawn down. This volume of crop per cent higher than a year earlier. Farm mort- output would be only 3 per cent less than the 1948 gage debt increased about 8 per cent to a level still record volume. In that year there was an accumubelow that prevailing before World War II. lation of stocks, but since that time the population has increased by 5 per cent, urban real income has INCREASED SUPPLIES risen, and defense needs for reserve stocks and for Earlier concern over the adequacy of agricultural current use of certain farm products have grown supplies lessened this summer as prospects for this considerably. The decline in total crop output in year's harvests improved. At the same time, how- 1950 and the recovery this year have reflected for ever, crop developments in Western Europe indithe most part changes in cotton production; output cate a volume of output somewhat below the of most other crops has continued to show little postwar high reached last year and world stocks change from the advanced level reached in the of crops generally are not large, especially consider- 1948 season. ing the international situation. Livestock production in this country has increased, with a further Production of farm crops in the aggregate may marked addition to beef cattle herds. This may approximate consumption this year, with an increase lead to an expansion in marketings later this year in cotton stocks from a low level offsetting declines or next year. Output of milk and eggs has changed in the fairly substantial carryovers of other comlittle but increased demand has led to a shift in modities. The likelihood of important shortages— utilization of available supplies. such as occurred last year for cotton—is thus Output of all crops this year, as shown in the reduced. table, is expected to be 10 per cent larger than last Yields per acre are expected to be 2 per cent year, when less was produced than consumed and above last year and a third above prewar, as shown in the table. Acreage planted to crops this year AGRICULTURAL PRODUCTION IN 1951 has been increased 4 per cent above last year and the 1935-39 average. Last year Federal acreage Percentage change from: restrictions—placed in effect before the increase in Item 1950 1947-49 1935-39 needs accompanying the turn in international average average events became evident—were an important factor Production—total 6 6 46 in the reduced output of cotton and grains. This Crops .. . 10 3 49 year acreage restrictions were replaced by Federal goals calling for substantially increased output. Cotton 73 21 31 Oil-bearing crops 13 13 142 Acreage planted to cotton increased 59 per cent Tobacco 13 14 58 Feed grains and hay 5 6 85 and exceeded the goal by 3 per cent. Acreage in Wheat 4 -17 56 Fruits and vegetables -1 1 25 feed grains, however, was 3 per cent below the goal. Livestock and products 2 7 43 Higher prices provided a major incentive for Wool , 5 -2 -36 expanded crop output. Cotton prices at planting Meat animals 2 ' 4 44 Eggs 1 8 68 time were two-fifths higher than in the correspond- Dairy products 0 2 18 ing period of the previous year, and prices of most Related factors: other crops were favorable. For potatoes, where Acres in crops 4 2 4 Yield per acre. . 2 2 31 the Federal support program was dropped and Milk cows on farms 1 2 prices were lower, a 20 per cent decline in output is Chickens on farms -2 1 15 indicated. Tractors on farms 7 30 230 Horses and mules on farms.. . -9 -26 -57 Labor shortages have been reported in many Farm employment -4 -8 -16 areas this year as farm workers have taken advan- NOTE.—-Data calculated from U. S. Department of Agriculture tage of enlarged industrial opportunities or have reports. Production changes refer to output for sale and farm home use, with estimates for 1951 based on July 1 indications— been added to the armed forces. The number of August 1 reports indicated somewhat smaller grain crops. Production totals include some items not shown separately. Cottonseed agricultural workers employed this summer was is grouped with oil-bearing crops. Acreage and yield relate to planted acres. The number of live- less than a year ago, a significant change in view stock and tractors on farms is as of January 1—latest changes relate to Jan, 1, 1951. Farm employment includes family and of the larger volume of farm output. The high hired labor; percentage changes for this series are based on data level of farm machinery production has permitted for the first half of each year. 1080 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

THE CURRENT POSITION OF AGRICULTURE further marked expansion in the number of tractors acreage was abandoned, but with a 25 per cent inand other equipment on farms. crease in spring wheat indicated, total output will Grains. It appears that harvests of feed grains be about 1 billion bushels and wheat reserves are will be a little smaller than last season despite the likely to remain adequate. A large part of the removal of acreage allotments and generally- abandoned wheat acreage was replanted to sorfavorable growing conditions. With feed uses ghum grains for livestock feeding. For this season's rising, total consumption will probably again some- plantings a goal slightly larger than for last season what exceed output. Grain carryovers are large, has recently been announced. however, and are expected to be drawn down only Cotton. Cotton supplies will be much larger this moderately, as indicated in the chart. Despite year than last when the small harvest and expanded favorable prices for livestock in relation to feed domestic mill activity, notwithstanding a reduced costs, the increase in livestock production since volume of exports, resulted in a 4.5 million bale the large feed stocks were accumulated in 1948 draft on stocks, lowering them to about 2 million has been modest, perhaps reflecting earlier doubts bales. In the season now commencing, an expected among producers that livestock prices would con- 17 million bale harvest added to the carryover will tinue at high levels. Hay production this year is result in total supplies of around 19.5 million bales. expected to be 6 per cent above last year and Exports were limited by quotas during the past pasture conditions have been good. season to 4.2 million bales, as compared with an average of 5.3 million in the two previous seasons when exports were not restricted. A near record STOCKS OF FARM COMMODITIES domestic mill consumption of 10.5 million bales End of Season, in Millions during the past season reflected in part an increase in inventories of cotton goods which led to a marked reduction in mill activity this summer. If total disappearance were to equal last year's, there would be a doubling of carryover stocks in this country as of August 1, 1952. Probably some increase in stocks will occur abroad. Livestock and products. One of the most significant developments in the agricultural supply situation this year has been the continuing rapid increase in numbers of beef cattle on farms. It is estimated by the United States Department of Agriculture that the increase in all cattle on farms during 1951 will be 5l/z to 6 million head, with most of the increase in beef cattle. The probable number of all cattle on farms on next January 1 would be a new record of around 90 million head, 1946 1948 1950 1952 1948 1950 1952 slightly above the earlier high reached in 1945 and U. S. Department of Agriculture data with some figures estimated in part by Federal Reserve. The shaded portions one-third above the 1935-39 average. refer to commodities acquired by the CCC from price support operations or which were under price support loan. Price incentives to expand cattle herds have been strong, and these incentives have probably been Wheat has remained in liberal supply even accentuated by the withholding of breeding stock. though production this summer and last was Total cattle and calf slaughter in the first half of about one-fifth below the exceptionally high level the year was 8 per cent under last year. Onein the earlier postwar period. Exports of wheat, fifth fewer calves were marketed than in the first while considerably expanded in the past season, half of last year, even though more calves were were 150 million bushels or so below the high rates raised this year. The increase in cattle numbers in 1947 and in 1948 when world needs were very on farms is the main factor in the greater rise in large. The winter wheat crop this summer was af- total livestock production than in meat slaughter, fected by severe drought in some areas and this as shown in the chart on the following page. SEPTEMBER 1951 1081 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

THE CURRENT POSITION OF AGRICULTURE LIVESTOCK PRODUCTION AND MEAT CONSUMPTION Milk and eggs. Output of milk and eggs has remained about the same this year as last, but food market supplies of both have been more adequate than production figures indicate. There has been an increase in the proportion of milk marketed in fluid form accompanying a decline in output of manufactured products—principally butter. This was the reverse of the change in 1949-50, when the declining consumption of fluid milk led to increased output of manufactured dairy products and to large Federal purchases of these products under the price support program. This year Federal purchases have been negligible and Commodity Credit Corporation stocks have been sold. The effect of the smaller supplies of butter—production was one-sixth lower in the first half of 1951 than in 140 140 1950—has been lessened by larger production of colored oleomargarine, now being sold without 120 120 Federal tax. About four-fifths as much oleo- 1941 1943 1945 1947 1949 1951 margarine as butter was produced in the first half U. S. Department of Agriculture data. Figures for 1951 are partly estimated. Production on farms refers to the live of this year. weight farm production of cattle, sheep, and hogs whether sold off the farm or held for herd increase. Slaughter figures Consumption of eggs increased in 1951 by an are also in live weight. Total output per capita is slaughter, on a dressed weight basis, divided by the total populat i<on includ- amount almost equal to the 6 per cent of output ing the armed forces. Civilian use per capita is the amount consumed by civilians divided by the civilian population. that was purchased in dried form for price support in the previous year. Also, cold storage stocks With cattle and calf slaughter down and with were not accumulated in the heavy producing sealamb slaughter also smaller, only a 9 per cent in- son this spring to as large an extent as last year crease in hog slaughter has maintained the total or earlier years. Numbers of chickens are increasat the year-ago level. Hog numbers and market- ing this summer, with prospects of a somewhat ings have increased substantially in recent years larger than seasonal increase in tgg output later and currently provide a larger share of the total this year and next year. Production of broilers meat supply. rose substantially this year and for the entire year For 1951 as a whole, meat supplies available to chickens will furnish about 30 pounds of meat per the civilian population will probably be little larger person as compared with 27 in 1950. on a per capita basis than they were in 1940 and Supplies under price support. The Commodity will be below the level during most of World Credit Corporation reduced its large price support War II and the record of 155 pounds in 1947, as holdings of farm products by about one-half durshown on the chart. During most of the war years, ing the fiscal year ending June 30, 1951, as shown production and slaughter of livestock were at higher in the table on page 1083. Sales considerably exlevels than at present and, with consumption by ceeded direct purchases of commodities and the the smaller civilian population restricted by ration- acquisition of commodities taken over from price ing, large supplies of meat were made available to support loans. In addition, few new price supthe military and for lend-lease. This year there has port loans were made in the year and more loans been some increase in military takings which, than usual were redeemed before maturity. As a together with the growth in population, has offset consequence of these developments the CCC rethe small increase expected in slaughter accompany- duced its price support loans and inventories during the rapid buildup of herds. It is estimated ing the year by 1.8 billion dollars, an amount equal that meat supplies would have been larger by 10 to about 6 per cent of cash receipts from farm marpounds per person if the increase in cattle herds ketings. This was in marked contrast with dehad been marketed this year. velopments in the previous year, when loans and 1082 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

THE CURRENT POSITION OF AGRICULTURE inventories of the CCC rose by about 1.2 billion reflected an increased preference of producers to dollars. hold stocks. Although CCC loans and inventories of wheat, for example, declined by 155 million PRICE SUPPORT INVESTMENTS bushels, total wheat stocks declined only 30 million [In millionsof dollars] bushels, as is evident in the chart on page 1081. The availability of the large CCC supplies of various Fiscal year 1951 Fiscal year 1950 commodities and their release during the year were Out- Out- factors in moderating the price rise for farm com- Commodity i s n J 1 t g 3 u a 9 0 n 5 n , e 1 o d n - T C o h ta a l nge S d e h u c a r o l i f n n d gy F e h i a a r r l s f t s in t J 1 a 3 g u 9 n 0 5 n d , o 0 e - n C d y u h e r a i a n n r g g e m ati o T o d n h i s t e i e t f s a o . b r l e s g o i m ve e s o p n e l r y is h a a l b im le ite c d o m v m iew od i o ti f e s C C s C uc o h p e a r s potatoes. Potatoes are disposed of soon after ac- Total 1,767 -1,771 -1,123 -648 3,538 1,166 quisition and hence only a small part of total pur- Cotton 17 -685 -2 -683 701 92 Wheat 505 -320 -513 193 826 256 chases appears as inventory on a given date. Losses Corn 823 -241 -66 -175 1,064 577 on potato support were 63 million dollars in fiscal Feed grains year 1951 compared with 75 million in the previous excluding corn. 86 -97 -132 35 183 88 Oil and oilseeds. . 87 -143 -162 19 230 -6 year. Losses on sales and donations of dried eggs Dry edible beans. 51 -36 -29 -7 86 45 Potatoes 0 -1 0 -1 1 -1 and dairy products were also large, and altogether Dairy products. . 5 -160 -125 -35 165 151 losses on these three products were about three- W Eg o g o s l 40 0 -63 0 -67 0 4 0 103 0 -7 2 5 2 fourths of the 346 million dollar total realized loss All other 154 -25 -26 1 179 16 during the year. Payments of 67 million dollars on cotton—the amount of receipts in excess of NOTE.—Commodity Credit Corporation data. Investments costs—were made to growers under a pooling arrefer to the cost value of commodities owned by the CCC under the price support program, and to all loans on commodities for rangement. Support operations are no longer in price support purposes, including loans held by other lending agencies and guaranteed by the CCC as well as loans held directly effect for potatoes and eggs, and with demand for by the CCC. On June 30, 1951 the CCC had invested 1,716 million dollars in commodity inventories and in direct loans. milk increased and CCC stocks sold, support operations are currently of small influence in dairy The various operations that led to the decline in markets. CCC price support investments of 1.8 billion dollars Loans on the new wheat crop have been larger resulted in about 1 billion dollars of receipts by the so far this year than in the corresponding period CCC. Receipts by the CCC were less than the dea year ago, and with cotton prices close to the 90 cline in loans and inventories, partly because sellper cent of parity level, support loans for cotton ing prices of some products were less than cost and are expected to be in larger volume this fall. The partly because large repayments were made to CCC still holds large amounts of grain, however, banks that held a part of the price support loans. and for this reason, if grain carryovers are lowered, Altogether, from mid-1948, when CCC price sup- net sales of CCC grain seem likely. port activities again became important, until June Federal support levels for commodities included 30, 1951, Federal price support outlays exceeded in the program were on the average 10 per cent Federal receipts by about 2.3 billion dollars. About higher at midyear than a year ago. A few of the three-fifths of this amount was still invested in support levels have been set higher than the mini- CCC-held loans and inventories at midyear 1951, mum provided by statute to encourage larger while the remainder was represented by realized output. losses amounting to 850 million dollars in the period. RISE IN EXPORTS The decline in CCC price support loans and in- Exports of farm commodities from this country ventories in fiscal year 1951 affected all major com- rose in the last half of fiscal year 1951 to a level modities. The largest decrease was in cotton not far below the record volume in earlier postwar holdings and these stocks were practically ex- years when world food production was smaller and hausted by October 1950. There were also impor- when foreign aid financing was greater. An imtant declines in holdings of corn, wheat, and dairy portant factor in the increase in exports was the products. The decline in some of the holdings improved gold and dollar position of many foreign SEPTEMBER 1951 1083 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

THE CURRENT POSITION OF AGRICULTURE countries because of larger sales of goods to theaid, the Administration has requested 2.2 billion United States following the Korean outbreak. dollars as compared with about 2.8 billion in fiscal The physical quantity of agricultural shipments 1951, and a House-Senate conference committee is in the first half of fiscal 1951 had been moderately considering a bill for 1.3 billion. On the other reduced so that for the year as a whole exports hand, foreign countries may have less desire to add were only 4 per cent below the level of fiscal year further to their gold and dollar assets because of 1950. This level was 8 per cent below the postwar the 'substantial improvement that has. already 1947-49 average, but two-thirds above prewar years, occurred. There are other important considerations as shown in the table. Exports are a more im- which will influence the course of their reserves portant part of agricultural production than they and their imports, such as price prospects, their were before the war and are currently close to current stocks of imported materials, concern over one-tenth of production. expansion of hostilities and stockpiling preparations, and current dollar earnings. Such earnings, which EXPORTS OF FARM COMMODITIES had been rising sharply since early in 1950, were moderately lower in the second quarter of 1951 Commodity F y 1 i 9 e sc 5 a a r 1 l F y 1 i 9 e sc 5 a a r 0 l 1 av 94 er 7 a - g 4 e 9 1 a 9 v 3 er 5 a - g 3 e 9 than in the preceding quarter, reflecting mainly a smaller volume of sales to this country. Physical quantities The strength in foreign demand for wheat in (1935-39=100) fiscal 1951 was indicated by the early fulfilment of Total . 163 170 175 100 the United States quota under the International Wheat . . . 655 555 801 100 Other grains 351 327 269 100 Wheat Agreement, four months before the end of Cotton 78 106 66 100 Tobacco 115 119 116 100 the season, while the year before shipments had Value been somewhat less than the quota. Payments by (In millions of dollars) the United States on wheat exports in this second Total. 3,409 2,978 3,649 748 year of the Agreement were 180 million dollars. O W t h h e e a r t grains 5 7 0 2 9 9 6 37 6 4 0 1,1 4 7 2 9 0 4 5 3 2 Wheat exports in the year ending June 30, 1951 Other foods 649 548 1,030 178 were 360 million bushels, one-fifth more than in Cotton 941 949 584 318 the previous year, and exports of other grains, in- Tobacco 274 235 252 128 All other 307 221 191 29 cluding grain sorghums, were a fourth larger. The larger grain shipments reflected in part re- NOTE.—U. S. Department of Agriculture figures. Physical quantity indexes converted to 1935-39 base by Federal Reserve. duced export supplies in other exporting countries. Value figures shown for 1935-39 are for calendar years. Grain sorghums are not included in the quantity index of "other grains," Under the India Emergency Food Act of 1951 a and exports of grain sorghums increased very sharply in 1951. loan has been approved to aid India in alleviating Value of farm exports in fiscal year 1951, as is the effect of a severe food shortage, and about also shown in the table, reached 3.4 billion dollars, 70 million bushels of wheat and other grains are an increase of 14 per cent from the previous year. With volume not quite as large, the increase re- FINANCING OF AGRICULTURAL EXPORTS flected the higher level of farm prices. Although a substantial portion of exports was again financed Fiscal year Item with United States aid, as shown in the table 1951 1950 1949 opposite, large increases in purchases financed by foreign countries more than offset the smaller Value of exports (billions of dollars). . 3.4 3.0 3.8 aid shipments. Even though foreign countries Percentage financed with: spent larger sums for purchases of agricultural and F F o o r r e e i i g g n n a b i a d lances 3 6 5 5 6 3 4 6 6 3 5 5 other goods, they were able to add substantially to Increase in foreign gold and dollar their gold and dollar reserves in fiscal 1951, as is holdings (billions of dollars) 3.4 1.9 0.1 also shown in the table. NOTE.—Value of exports are U. S. Department of Agriculture In fiscal year 1952 appropriations for military compilations. Foreign gold and dollar holdings are estimates of Federal Reserve. Percentages shown are estimated principally aid will be greatly expanded and appropriations for from reports of the Economic Cooperation Administration, and economic aid will be reduced. For foreign economic from information provided by the Department of the Army relating to the program of Government and Relief in Occupied Areas. 1084 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

THE CURRENT POSITION OF AGRICULTURE scheduled for export to that country during fiscal February, while continued for six months, has been 1952. gradual and of a fairly selective nature, as shown Food production in Western Europe reached a in the chart. By August prices for major crops postwar high last season but is expected to be were close to Federal support levels, which are up somewhat lower in the current season. Imports about 10 per cent from last season reflecting the from Eastern Europe have continued to be greatly advance in the level of the index of prices paid by restricted compared with prewar years. Production farmers. This index, including commodities, inof grain in Argentina and Canada was hampered terest, taxes, and wage rates, has changed little by unfavorable weather in the past growing sea- since March. son. Wheat prospects in Canada indicate a record PRICES RECEIVED BY FARMERS crop 120 million bushels larger than the previous harvest. Cotton exports, with quotas lifted, are Per Cent 1935-39-100 Per Cent expected to increase. DEMAND AND PRICE SHIFTS Reflecting the easing in demand and prospects of larger harvests, the average level of prices received by farmers in mid-August 1951 was 7 per cent below the record level reached in February, but 9 per cent higher than a year earlier and 18 per cent higher than in the month prior to the outbreak of Korean hostilities, as shown in the accompanying table. The decline in prices since CHANGES IN PRICES OF FARM PRODUCTS AND RELATED ITEMS Percentage change to August 1951 from: Item Feb. 1951 Aug. 1950 June 1950 Prices received by farmers, (50 150 total — 7 9 18 1946 1950 1951 Crops — 14 2 g U. S. Department of Agriculture data regrouped in part by Oil-bearing crops -22 0 16 Federal Reserve. Fruits and vegetables.... -20 Cotton -17 16 Since the beginning of 1951, developments in Wheat 4 6 Tobacco 8 11 agriculture as well as in other parts of the economy Corn 3 15 21 have reflected in part a reaction from the overly Livestock and products.... -1 15 25 stimulated buying situation which developed last Wool -29 32 37 Dairy products -3 15 22 year, when international tensions were increasing. Hogs ^ -2 16 Beef cattle 0 20 23 The establishment of price and wage controls this Poultry and eggs 13 21 48 year and the tightening of anti-inflationary meas- Prices paid by farmers. . 2 10 11 ures in the credit field, as supplies of civilian goods Wholesale prices: remained large, contributed to the shift in the de- Al F l a c r o m m m p o ro d d it u ie c s ts -6-j 8 7 1 1 5 3 mand situation. Foods 0 7 15 Consumer demand for food has been sustained Other commodities -3 7 12 Textile products -8 11 22 this year and average food prices both in wholesale Consumer prices: and retail markets have been steady at close to the All items 9 Federal ceiling levels established at the end of Foods 1 12 January. Despite a high and slightly rising level of Data calculated from U. S. Department of Agriculture and incomes, however, consumer buying of most other Bureau of Labor Statistics reports. Wholesale and consumer prices for August, 1951 are Federal Reserve estimates. goods, including those made from materials origi- SEPTEMBER 1951 1085 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

THE CURRENT POSITION OF AGRICULTURE nating in agriculture, were at reduced levels during ucts were raised to levels which began to encounter the spring and early summer. With distributors' marked buyer resistance by this spring. Subseinventories sharply increased by the continued very quently there was a sharp reaction in wool prices high rate of output through the early months of which was related also to revision in Government this year, distributors' demands for nonfood items stockpiling policies. The decline in prices received were down considerably at midyear. In durable by farmers for raw wool shown in the table on page goods industries the effect of these reductions and 1085 has been less marked than central market of limitations on the use of materials for consumer quotations for most grades of domestic and foreign purposes was offset by the very high and rising wool, which at the beginning of September were rates of expenditures for new business plant and below year-ago levels. During the past season of equipment and for munitions. Also, the generally sharply advanced prices of both wool and cotton high and rising levels of employment in these lines fibers, there has been a further shift to the use of and in Government supported the demand for substitute materials. foodstuffs. Since most foods are produced for cur- Strong Government, business, and consumer derent consumption, anticipatory buying of these com- mands for wool and other textile products resulted modities can be done to only a limited extent and in mill consumption of all fibers during the year hence shifts in inventory demands have a less ending June 30, 1951 about one-seventh in excess pronounced effect on foods than on nonfood items. of the average level of consumption of other recent On the other hand, buying of some other farm years. Even with important quantities going into products which are used to produce semidurable military uses, there was an accumulation of stocks goods has been considerably curtailed by the reduc- of textiles at various stages of production and distion of inventory demands on the part of manu- tribution. Buying by distributors was reduced this facturers and distributors and to some extent house- spring to limit inventory holdings, and the resultholders. This development has been evident in ing pressures on producers have been reflected in the markets for cotton, wool, fats and oils, and a marked curtailment in mill activity. Consumer hides and skins, and prices of these materials have buying of apparel during the past season was declined substantially this year following a rapid smaller than usual in relation to income. rise last year. Prices of oil-bearing crops in August were one- Textiles and other nonfood materials. The cycle fifth below earlier peaks and prices of tallow, hides, of excessive buying, subsequent overproduction, and skins also showed sharp declines. As in the and then curtailment has been most pronounced case of cotton and wool, prices of these materials in the textile industry, and large changes in raw in foreign producing areas have also declined cotton supplies last season and in the current season sharply. Demand for tobacco has continued active have been an important factor in accentuating these this year, but with acreage quotas and production developments. Prices of new crop cotton futures considerably increased, price changes from a year began to decline in March of this year but spot ago have been moderate and market prices are prices held at the ceiling level of 45 cents per pound close to Federal support levels. until early July. Spot market prices weakened Livestock and products. Marked increases in slightly at that time and then, after the official consumer incomes were reflected in a sharp rise acreage forecast was released on July 8, declined in demand for meat which, with little change in sharply. By early September prices had reached meat supplies, led to sharp advances in meat prices 34 cents, which was the same as in June of last last year and again in early 1951. Military puryear and about 2 cents above the higher Federal chases of meat and other livestock products have support level for this season. Prices of foreign continued to be a relatively small direct market cotton had risen considerably more than domestic factor in recent months. This spring and summer, cotton prices and have declined very sharply since while incomes have continued to show some init became apparent that larger United States sup- crease, meat prices have been steady. plies would become available. Federal ceilings imposed in January were so set Raw wool prices began to rise rapidly in the as not to prevent prices of farm products below first half of last year and by January of this parity from rising to parity (the relation between year had more than doubled. Prices of wool prod- prices received by farmers and prices paid ex- 1086 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

THE CURRENT POSITION OF AGRICULTURE pressed in terms of a base period). These ceilings were supported, and about equal to the level prewere intended to prevent further increases in prices vailing in 1948 and 1949. Egg consumption per of farm products which were above parity. At the person this year has increased considerably even time ceilings were established the average level of at the advanced level of prices, probably owing in farm prices was 110 per cent of parity, with a num- part to the relatively high prices of meats. Poultry ber of commodities below 100 and a few impor- prices have increased less than those for other tant ones—especially cattle and cotton—consider- meats, influenced partly by the large expansion in ably above. broiler production, and in August were only slightly Prices received by farmers for cattle, not under above year-ago levels. direct ceilings, continued to rise, reaching 152 per Prices of dairy products, which earlier were recent of parity in April, as compared with 141 per strained to some extent by large Federal storage cent in January. In April a 10 per cent rollback stocks, rose at the end of 1950 and have declined was announced effective in early June. This roll- less than seasonally since that time. back, setting maximum prices that packers could Other food crops. Grain prices have declined pay for cattle, was designed to reduce cattle prices somewhat this spring and current levels for both to the January level and thus restore more normal wheat and corn are at about Federal support levels. marketing margins. Additional rollbacks sched- Before the Korean outbreak corn prices were moduled for August and October, totaling 9 per cent, erately below support levels. The influence of the were to have been applicable to prices of both cattle general rise in prices since early 1950 has been and beef. Demand for pork has not increased as greater on corn than on wheat prices, partly bemuch since the earlier postwar period as demand cause the increases in livestock prices and producfor beef and supplies of pork have expanded. As a tion have expanded the demand for corn for feedresult, hog prices in April were about 5 per cent ing purposes. Prices of corn and other feed grains lower than the 1947-49 average, while cattle prices in this period are still relatively low as compared were 50 per cent higher. Prices of pork in retail with livestock prices. and wholesale markets were put under ceilings by The 20 per cent decline since February in averthe January order, but ceilings were not placed age prices of fruits and vegetables, shown in the on prices that packers could pay for hogs. To sup- table on page 1085, reflects in part reactions from plement the price control measures, quotas on the unusually high seasonal peaks reached when slaughter to allocate live animal shipments among supplies were curtailed by unfavorable weather. packers were put in effect. Prices of these products in August were little higher Since the early part of this year prices of meats than a year ago. have been unusually stable despite the usual sum- While farm prices have declined since February, mer seasonal decrease in supply relative to demand. marketing charges for most products have risen While price ceilings have influenced developments, further. The post-Korean period as a whole, howat times prices of certain grades of beef have been ever, has been characterized by a relatively sharper below ceiling levels. Moreover, meat supplies have rise in prices at the farm level than at later stages been reported as adequate in different sections of the of distribution. By June 1951 farm prices of foods country, even in the period when cattle marketings had advanced 17 per cent from June 1950, while were reduced considerably after the rollback was retail food prices had risen 11 per cent and marput into effect in June. Pork supplies have con- keting charges 5 per cent. tinued relatively large and prices have been gener- FINANCIAL DEVELOPMENTS ally close to ceiling levels. Prices received by farmers for all cattle in August There has been a further marked improvement were only 1 per cent lower than the average in in the financial position of farmers in the past year May and June, when the initial rollback was estab- notwithstanding a considerable rise in their shortlished. No additional rollbacks were permitted term debts. under the new legislation effective July 1, and Income. Farm income showed a considerably quotas on slaughter were prohibited. more than seasonal increase during the second half Egg prices this summer have continued at a level of 1950. In the first half of 1951 net incomes of nearly one-half higher than a year ago when prices farm operators were one-third larger than in the SEPTEMBER 1951 1087 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

THE CURRENT POSITION OF AGRICULTURE FARM FINANCIAL SERIES SH Ri u This was an extremely rapid increase, exceeded only by the 21 per cent advance at the close of World War I, from March 1919 to March 1920. The rise of 5 per cent from March to July, when seasonal differences are considered, may be as significant as the 8 per cent rise during the winter months. The most recent rise, occurring when farm product prices were declining moderately from the February peak, apparently reflected optimism about income prospects in relation to land values and a continued desire by many people to invest in real estate. Increases in farm real estate values in the past year have been widespread, as is shown in the TAGE DEBl table on page 1089. Except in the New England \Billiois of Dollar and New York areas the increases were one-sixth or DEBT/ . ' more. The level of values on the average is now liars/ about two and one-half times the 1935-39 average, and 20 per cent above the peak reached after - World War I. 1941 1944 1947 19501941 1944 1947 1950 Short-term debt. Most of the expansion in total Based largely on U. S. Department of Agriculture data. farm debt since the end of World War II has been Latest figures plotted refer to mid-1951. Income figures are estimates of farm proprietors' income adjusted for seasonal in short-term debt, which at midyear was one and changes as published by U. S. Department of Commerce. These data are shown for quarterly periods and expressed at annual one-fourth times larger than at the beginning of rates. Real estate values relate to March 1, July 1, and Novem- 1946, as shown in the chart. The sharp upturn ber 1 dates. Short-term debt is estimated total outstandings held by institutions and individuals. These data are semi-annual in short-term debt in the early postwar years refigures, estimated in part by Federal Reserve, adjusted for seasonal variation by Federal Reserve. Mortgage debt is the flected rapidly rising prices of farm commodities amount outstanding on January 1 of each year, and for 1951 an estimate is shown for June 30. and increasing costs of production, together with large deferred demands for farm machinery and first half of 1950 and were at a seasonally ad- equipment as well as the ready availability of justed annual rate of about 16 billion dollars, as credit. shown in the chart. While prices received by Expenditures for new machinery and equipment, farmers in this period exceeded the earlier record above repairs and current operating expenses, have level in 1948, costs had increased more so that net averaged 2 billion dollars annually since 1947, a incomes were not quite up to the previous record. very large amount, equal to about one-sixth of During the first half of this year the increase in annual net cash farm income. After being curtailed income has been mainly from sales of livestock for a time in 1949-50 expenditures rose sharply and products but the total volume of marketings again in the latter part of 1950, and, with backlog is now increasing more than seasonally, reflecting demands largely filled, the rise reflected in part mainly the larger crop harvests. In cotton, even fears of future shortages. This active demand for though price declines have been marked, the infarm machinery carried over into 1951, although creased output will yield at least one-fourth more in recent months there has been some falling off cash receipts than last season. in sales. Real estate values. The sharply advanced levels In the second half of 1950 short-term agriculof farmers' returns since mid-1950, together with tural loans at Federal Reserve member banks, recurring indications of inflation and shortages, which usually decline seasonally, increased 5 per have resulted in marked changes in farm assets cent. Loans of the Federally sponsored Producand debt. The average value of farm land and tion Credit Associations declined substantially less buildings was reported by the United States Depart- than seasonally in this period, reflecting a sharp ment of Agriculture to have risen 18 per cent dur- upturn in new loans made in relation to only moding the 12 months ending in July of this year. erately larger repayments. In the first half of 1088 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

THE CURRENT POSITION OF AGRICULTURE 1951, member bank debt increased 20 per cent and this spring, materially added to operating capital PC A debt, subject to much sharper seasonal requirements, and total cotton acreage was exfluctuations, increased 50 per cent. Total short- panded by three-fifths. In most areas increased term debt, including estimated noninstitutional purchases of higher priced farm machinery added debt, as shown in the chart, rose 21 per cent in the to borrowings. Increases in debt in the eastern year ending in June 1951. third of the country were quite moderate. Short-term loans to farmers by banks and the A Voluntary Credit Restraint Program designed PCA's have shown similar regional changes during to curb nonessential borrowing was inaugurated the last 12 months, indicating that the underlying this spring. This program in agricultural lending forces were more or less alike and that the two has been applicable to commercial banks and to lender groups responded similarly to these forces. the Federally sponsored farm loan agencies. The sharpest expansion in short-term outstanding Mortgage debt. Mortgage debt of farmers, also debt, as shown in the table, has occurred in Federal shown on the chart, has expanded moderately Reserve Districts with large livestock feeding en- further during the past year. This has reflected terprises and in areas where expansion in cotton the relatively small number of farm properties acreage has been greatest. Prices of feeder and being offered for sale and sold as well as the large stocker cattle, a fourth to a third above a year ago proportion of transfers for all cash or with large down payments. The possession of large liquid FARM REAL ESTATE VALUES AND SHORT-TERM DEBTS assets by farmers purchasing farms was a factor in [Percentage changes by Federal Reserve Districts] moderating the growth in mortgage debt. Nonfarmers purchased farms to a larger extent in the Real estate values Short-term debt past year and a large proportion of these purchases were entirely for cash. These changes in mortgage Increase to Increase to June 30, 1951 June 30, 1951 from debt in the last year and also since 1940 have been Federal Reserve from: June 30, 1950 District in marked contrast to the short-term farm debt development. Ju 1 n 9 e 5 3 0 0, 1 av 93 er 5 a - g 3 e 9 M b e a m nk b s er A P s ro s C o d r c u e i d c a t i t i t i o o n ns As a result of the sharp rise in short-term debt and the small expansion in mortgage debt since United States 18 144 31 29 1945, total debt is now about equally divided be- Boston 4 58 4 2 tween the two. This change in credit require- New York 10 95 13 8 Philadelphia 16 113 18 9 ments reflects in part the growing importance of Cleveland 20 181 20 19 Richmond 18 175 15 17 non-real-estate capital investment on farms in re- Atlanta 16 166 18 20 Chicago 18 165 27 29 lation to investment in land and in part the im- St. Louis 20 192 26 29 proved financial position of farmers. Financial Minneapolis 17 132 28 31 Kansas City 18 160 36 44 changes that occurred in 1950 are discussed in de- Dallas 22 142 45 44 San Francisco 16 100 39 35 tail in "The Balance Sheet and Current Financial Trends of Agriculture" beginning on the following Based on U. S. Department of Agriculture and Federal Reserve data. page of this BULLETIN. 1089 SEPTEMBER 1951 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

THE BALANCE SHEET AND CURRENT FINANCIAL TRENDS OF AGRICULTURE, 19511 The major factual portions of the seventh in a H. T. Lingard, L. A. Jones, and M. E. Wallace, series of annual reports on the financial condition Data relating to the inventories of real estate, of agriculture, issued by the United States Depart- livestock, crops, machinery, and household equipment of Agriculture, are given below.2 The full ment were prepared under the direction of the folreport, including analysis of current financial trends lowing persons: Real estate—M. M. Regan, W. H. in agriculture, will be published as an Agriculture Scofield; livestock—A. V. Nordquist; crops—C. E. Information Bulletin of the Department of Agri- Bur\head, T. J. Kuzel\a, J. J. Morgan, John A. culture. Hic\s; machinery—E. W. Grove, Margaret F. Can- The study was prepared under the direction of Norman J. Wall, Head of Division of Agricultural non; household equipment—Barbara B. Reagan. Finance, Bureau of Agricultural Economics, by Data relating to farm income and expenditures F. L. Garloc\, A. S. Tostlebe, R. J. Burroughs, were compiled under the direction of E. W. Grove. THE BALANCE SHEET IN GENERAL Physical assets of American agriculture increased (Table 1). Although this was higher than ever 15 per cent in current valuation during 1950, but before and 13 per cent above a year earlier, the only 2 per cent in terms of 1940 prices. Financial increase in total assets amounted to but 2 per cent, assets increased only 2 per cent in current valu- if the physical assets are estimated at 1940 prices ation; and the buying power of the "monetary" (Table 2). portion of those assets (deposits, currency, and The largest percentage increase in financial assets United States savings bonds) for purposes other was a 9 per cent rise in investments in cooperatives. than debt-payment went down 9 per cent. Total The much larger items of deposits, currency, and indebtedness, aside from Commodity Credit loans, United States savings bonds increased only 1 per increased 13 per cent. As a result of these changes, cent, and their buying power (except for debt-paythe current value of proprietors' equities, including ment last January) was at the lowest level since those of both operators and nonoperating landlords, 1944 and 24 per cent or nearly one-fourth below increased 14 per cent during 1950. the peak in 1946. ASSETS THE BALANCE SHEET Total assets of American agriculture, as estimated OF AGRICULTURE in the annual Balance Sheet of Agriculture, were ASSETS CLAIMS valued at 143 billion dollars on January 1, 1951 $ BIL." - EE3Owners' equities *This is the seventh of a series of annual reports which E3 Other debt arc designed to carry forward the comparative balance sheet of agriculture since 1940. Each balance sheet is as of January 1 of its year. The balance sheet views agriculture as though it were one large enterprise. It is an aggregate of individual series concerning farm assets and the claims to those assets. In effect it is comparable to a consolidated balance sheet of farm firms. It is not, however, a balance sheet of farm operators, nor of people living on farms, nor of landlords. Rather it 1940 covers all the interests of all groups in farming as well as financial assets of people living on farms. In a country so vast and diversified as ours, financial changes are never entirely uniform, either for geographic areas or for individuals, so that even when the balance sheet 2 For earlier reports in this series, see the Federal Reserve accurately reflects the aggregate, it does not reveal the dif- BULLETIN for September 1946, pp. 974-94; November 1947, ferences in circumstances that are found in different States pp. 1357-72; September 1948, pp. 1067-82; September 1949, and regions and among individual farmers. pp. 1053-63; and September 1950, pp. 1118-31. 1090 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

THE BALANCE SHEET AND CURRENT FINANCIAL TRENDS OF AGRICULTURE, 1951 TABLE 1 COMPARATIVE BALANCE SHEET OF AGRICULTURE, UNITED STATES, JANUARY 1, SELECTED YEARS, 1940-51 * [Dollar amounts in millions] Net change (per cent) Item 1940 1945 1946 1949 1950 1951 1940-51 1950-51 ASSETS Physical assets: Real estate $33,642 $46,389 $52,114 $65,168 $63,527 $72,650 +116 +14 Non- real-estate: Livestock 5 133 9,012 9,742 14,657 2 13,184 17,517 +241 +33 Machinery and motor vehicles 3,118 6,114 26,072 2 11,706 214,271 15,517 +398 +9 Crops stored on and off farms 3 2,645 6,396 6,030 8,417 2 7,837 8,030 +204 +2 Household furnishings and equipment4.. 4,275 4,232 4,415 6,000 6,500 7,175 +68 +10 Financial assets: Deposits and currency 3,900 10,800 13,500 14,800 14,300 14,400 +269 +1 United States savings bonds 249 3,714 4,498 5,025 5,250 5,307 +2,131 +1 Investments in cooperatives 826 21,167 2 1,307 21,818 2 1,995 •2,179 +164 +9 Total $53,788 2$87,824 2$97,678 2$127,591 2$126,864 $142,775 +165 +13 CLAIMS Liabilities: Real estate debt $6,586 $4,933 $4,682 $5,108 2$5,407 $5,828 -12 +8 Non-real-estate debt: To principal institutions: Excluding loans held or guaranteed by Commodity Credit Corporation. 1,504 1,622 1,671 2,714 2,838 3,372 + 124 +19 Loans held or guaranteed by Commodity Credit Corporation 445 683 277 1,152 1,719 806 +81 -53 To others 6 1,500 1,100 1,200 2,200 2,400 2,800 +87 +17 Total liabilities $10,035 $8,338 $7,830 $11,174 2$12,364 $12,806 +28 +4 Proprietors' equities $43,753 2 $ 79,486 2$89,848 2$116,4l7 2$114,500 $129,969 +197 +14 Total $53,788 2$87,824 2$97,678 2$127,591 2$126,864 $142,775 +165 +13 1 The margin of error of the estimates varies with the items. 11 RReevviisseedd.. »Includes all crops held on farms for whatever purpose and crops held in bonded warehouses as security for Commodity Credit CorporatLion loans. The latter on Jan. 1, 1951 totaled 306 million dollars. 1 Estimated valuation for 1940 plus purchases minus depreciation since then. Preliminary. Tentative. Includes individuals, merchants, dealers, and other miscellaneous lenders. Much of the increase in current valuation of The quantity of machinery and motor vehicles assets during 1950 was caused by rising prices of on farms increased 11 per cent during 1950. Since real estate, livestock, and other physical assets. 1940 the quantity of this item has more than Most of the increase in prices occurred in the second doubled, an increase greater than that of any other half of the year in response to factors associated physical asset of the Balance Sheet. with the Korean hostilities. In current prices, the Horses and mules as sources of power have been valuation of farm real estate on January 1 this year largely superseded by tractors and trucks. On was up about 9 billion dollars or 14 per cent from January 1, 1951, the value of tractors on farms was a year earlier. The aggregate current values of almost nine times, and the value of trucks was other physical assets increased 15 per cent. four times, that of work animals. This transition Physical changes. Physical farm plant including to mechanical power has brought a decided increase inventories (measured in constant 1940 prices) in the capacity of farmers to produce food and fiber became larger during 1950 because of an in- for human consumption. Output per man-hour crease in the number of livestock and the quantities has been increased. Moreover, land formerly used of machinery, vehicles, and household items (Table to produce feed for work animals has been released 2). Real estate is believed to have changed little in for crops for human consumption. This, together physical quantity during 1950. Crops in storage with the adaptability of machinery to continuous that were owned by farmers decreased about 9 per high-speed operation during rush periods, has concent during the year. More livestock was on farms tributed to the greater output of these crops. On on January 1, 1951 than a year earlier, but the the other hand, greater mechanization makes farmamount was considerably less than during World ers more dependent on the rest of the economy than War II. they once were. Their operations now can be im- SEPTEMBER 1951 1091 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

THE BALANCE SHEET AND CURRENT FINANCIAL TRENDS OF AGRICULTURE, 1951 TABLE 2 BALANCE SHEET OF AGRICULTURE WITH PHYSICAL ASSETS VALUED AT 1940 PRICES, JANUARY 1, SELECTED YEARS, 1940-51 [Dollar amounts in millions] Net change (per cent) Item 1940 1945 1946 1950 1951 1940-51 1950-51 ASSETS Physical assets (1940 prices): Real estate $33,642 i$33,642 i$33,642 i$33,642 i$33,642 1$33,642 0 0 Non-real-estate: Livestock 5,133 5,606 5,402 4,835 24,875 5,017 -2 Machinery and motor vehicles 3,118 4,101 4,182 2 5,956 26,653 7,406 +138 Crops stored on and off farms 2,645 3,144 2,910 3,436 3,340 3,056 -f-16 -9 Household furnishings and equipment3. 4,275 4,232 4,415 6,000 6,500 7,175 +68 +10 Financial assets (actual value): Deposits and currency 3,900 10,800 13,500 14,800 14,300 14,400 +269 +1 United States savings bonds 249 3,714 4,498 5,025 5,250 5,307 +2,031 Investments in cooperatives 826 21,167 2 1,307 21,818 21,995 42,179 +164 Total $53,788 2$66,406 2$69,856 2$75,512 2$76,555 $78,182 +45 +2 CLAIMS Liabilities (outstanding amount): Real estate debt $6,586 $4,933 $4,682 $5,108 2$5,407 $5,828 -12 Non-real-estate debt: To principal institutions: Excluding loans held or guaranteed by Commodity Credit Corporation 1,504 1,622 1,671 2,714 2,838 3,372 +124 +19 Loans held or guaranteed by Commodity Credit Corporation 445 683 277 1,152 1,719 806 +81 -53 To others 1,500 1,100 1,200 2,200 2,400 2,800 +87 +17 Equities (residual balance) 43,753 2 58,068 2 62,026 264,338 2 64,191 65,376 +49 +2 Total $53,788 2$66,406 2$69,856 2$75,512 2$76,555 $78,182 +45 +2 11940 valuation of farm land and buildings. This figure does not reflect net physical improvements in farm buildings, or net depletion of productivity of agricultural lands. 2 Revised. * Not deflated. Estimated valuation for 1940 plus purchases minus depreciation. 4 Preliminary. paired by shortages of motor fuel, machines, and The index that measures the purchasing power of parts. Besides, more costs of production require these assets in terms of commodities declined from cash outlays than when farmers were more largely 242 (1940=100) on January 1, 1950 to 221 on self-sufficient. January 1, 1951. Financial assets. The financial assets of farmers rose slightly during 1950. Cash balances increased CLAIMS slightly, partly because farmers increased their bor- The distribution of the claims to the assets of rowing. Accrued interest on United States savings agriculture, which amounted to 143 billion dollars bonds raised the value of farmers' holdings of these on January 1, 1951, shifted somewhat during 1950 assets and investments in fanners' cooperative asso- in favor of the proprietors. Claims (or equities) ciations increased. of proprietors, including landlords not living on In terms of real purchasing power, the over-all their farms as well as owner- and tenant-operators, cash position of farm people was somewhat less increased by more than 15 billion dollars, or 14 favorable at the beginning of 1951 than it was a per cent. The claims of creditors, which from the year earlier. Prices paid by farmers for commodi- point of view of farmers and landlords are debts, ties used in production and in farm homes ad- increased less than half a billion dollars, or 4 per vanced about 10 per cent during 1950. But de- cent. The equities of proprietors were 91 per cent posits and currency and United States savings and debts were 9 per cent of total claims on January bonds held by farm people increased only 1 per 1, 1951 compared with 90 per cent and 10 per cent, cent. Consequently, their quick assets, totaling respectively, a year earlier. 19.7 billion dollars on January 1, 1951, would have Liabilities. Although farm-mortgage debt inbought only 91 per cent as many goods then as creased 8 per cent and non-real-estate debt, not inthey would have bought a year earlier, when cluding CCC loans, increased 18 per cent, total similar assets were valued at 19.5 billion dollars. liabilities increased only 4 per cent because of the 1092 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

THE BALANCE SHEET AND CURRENT FINANCIAL TRENDS OF AGRICULTURE, 1951 sharp reduction in the nonrecourse price support TABLE 3 loans made or guaranteed by the Commodity Credit VOLUME OF AGRICULTURAL PRODUCTION FOR SALE AND FOR Corporation. As market prices of many crops were CONSUMPTION IN FARM HOMES AND PRICES RECEIVED BY above support prices, most farmers moved their FARMERS, UNITED STATES, 1940-50 products directly to market rather than to storage. [Indexes 1935-39=100] As a result, both the volume of support loans and the inventories of the Commodity Credit Corpora- Livestock and tion were reduced. All commodities Crops products Total mortgage and non-real-estate debt, not in- Year cluding loans made or guaranteed by the Com- Pr t o i d o u n c- Prices Pr t o i d o u n c- Prices Pr t o i d o u n c- Prices modity Credit Corporation, increased 13 per cent during 1950. The total on January 1, 1951 was 1940.. 110 93 107 92 112 94 12.0 billion dollars compared with 7.6 billion on 1941.. 113 115 110 109 115 119 1942.. 124 148 121 145 127 149 January 1, 1946 and 9.6 billion on January 1, 1940. 1943.. 129 179 114 187 139 172 1944.. 137 183 128 200 143 170 During and following World War II, total non- 1945.. 134 193 122 205 141 183 1946.. 137 219 135 229 138 210 real-estate debt gained in importance over mortgage 1947.. 136 257 135 266 137 250 debt. In 1940, non-real-estate debt was only 34 1948.. 138 266 152 255 130 273 1949.. 1 141 233 1 147 225 i 137 237 per cent of all debt but by 1951 it was 54 per cent. 1950.. 138 239 135 234 140 242 In the meantime, non-real-estate physical assets, which often are financed with non-real-estate credit, i Revised. increased from 31 per cent to 40 per cent of all INFLUENCE OF THE GENERAL ECONOMIC SITUATION physical assets. The increase from January 1, 1940 to January 1, 1951 in the value of non-real-estate The changes that occurred in the items of physical assets was 33 billion dollars, while the in- the Agricultural Balance Sheet during 1950 were crease in non-real-estate debt was less than 4 billion chiefly responses to an almost uninterrupted rise in dollars. It appears that the sharp increase in non- the prices of farm products that carried the index of real-estate debt is well protected by assets, but only prices received by farmers from 235 (1910-14=100) meager information is available concerning the for January 1950 to 300 a year later, an increase of relation of debt to assets on individual farms. 27.7 per cent. During the same period the per- A number of shifts since 1940 in the geographic centage of parity received by farmers rose from 95 distribution of farm debt are reflected by the loans to 110, or 15.8 per cent. The prospects for higher of those lenders for which regional data are avail- net farm income, combined with fear that goods able. During 1950, while the loans of such lenders needed by farmers might become less plentiful and throughout the United States (not including CCC higher priced, gave rise to an increase in the value loans or miscellaneous non-real-estate debt but in- of farm real estate and encouraged farmers to add cluding mortgage debt) increased 11.6 per cent, to their inventories of machinery, livestock, and those in the Northeast increased only 6.1 per cent. household furnishings. These expansionary devel- In contrast, such loans in the Mountain region in- opments were accompanied by an increase in farm creased 16.6 per cent. debts and in the equities of proprietors. The increases both in prices received by farmers AGRICULTURAL INCOME and in the percentage of parity received by farmers Agricultural income is the most important single were small during the first half of 1950. During influence on the Balance Sheet of Agriculture. Curthese months a moderate but steady recovery rent income affects the ability of farmers to improve throughout the economy proceeded under the stimtheir farms and to accumulate liquid reserves. Proulus of expanding business outlays and rising conspective income afTects the valuations of earning sumer expenditures. Government purchases of assets. goods and services and net foreign investment de- Prices received by farmers for all crops and liveclined during the first half of 1950. stock averaged 3 per cent higher in 1950 than in The Korean outbreak late in June greatly accel- 1949, but production for sale and home conerated the rate of spending by both private and sumption was about 2 per cent lower (Table 3). public buyers. After June much of the spending by However, cash receipts from farm marketing were consumers and business firms was anticipatory and 2.7 per cent higher in 1950 than in the year before. speculative—induced by fears of shortages and re- Government payments, though 53 per cent higher in 1950 than in 1949, were far below levels prior strictions, and by a belief that sharp increases in to 1949. Expenses reached an all-time high. prices were at hand. At first Federal expenditures SEPTEMBER 1951 1093 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

THE BALANCE SHEET AND CURRENT FINANCIAL TRENDS OF AGRICULTURE, 1951 were not greatly affected by the Korean outbreak, duction was rising, but it accelerated sharply the but in the fourth quarter of 1950 they rose sharply rise in prices. From January to June 1950 wholefrom an annual rate of 21.2 to 27.3 billion dollars, sale prices rose at the rate of about eight-tenths of or 29 per cent. Meanwhile the expenditures of 1 per cent a month, but from June 1950 to Janu- State and local governments resumed a slow but ary 1951 they rose, on average, about 2 per cent a persistent expansion which had been temporarily month. Prices received by farmers rose at the rate interrupted in the second quarter. "of 1 per cent a month from January to June 1950. The upsurge in spending after June brought no But from June 1950 to January 1951 they rose at marked change in the rate at which industrial pro- the rate of nearly 3 per cent a month. THE BALANCE SHEET IN DETAIL The foregoing pages have provided a summary east demand apparently is relatively stronger for analysis of the balance sheet in general terms, an farms suitable for pasture and timber than for account of the income position of agriculture, and land suitable for row crops. an analysis of the influence of the general economic The rise in land values has been accompanied by situation on the financial status of farmers. In a slight increase in the number of farm transfers. what follows, each item of the balance sheet is Apparently the number of prospective buyers intreated in detail. creased during 1950. The rate of transfers per ASSETS thousand farms increased from 37.1 during 1949 to The assets fall into two general classes: (1) Physical assets, both real estate and tangible personalty, CHANGES IN DOLLAR VALUE and (2) financial assets, which include cash, bank OF FARM LAND* deposits, United States savings bonds, and farmers' Percentages, Mar. 1950 to Mar. 1951 investments in cooperative associations. Farm real estate. The 9.1-billion-dollar increase in farm real estate values was the chief factor in the expansion in the assets of United States agriculture during 1950. The total value of farm real estate at the beginning of 1951—72.6 billion dollars—was the largest on record. As the physical amount and condition of farm land and buildings change slowly, the increase in value was primarily due to the rise in prices. On March 1, 1951, the index of average value per acre of farm real estate was 193 (1912-14=100). This was 14 per cent higher than that of a year earlier and 9 per cent above the previous peak, reached in 39.4 during 1950. But activity in farm real estate November 1948. Although land prices rose slightly was substantially lower than in 1946, when the rate in early 1950, the upward movement did not be- of transfers was 57.7 per thousand. The number come strong until the period of general inflation of foreclosures and forced sales of farms continued which followed the Korean outbreak. in 1950 at 1.5 per 1,000 farms, or about the same Land values increased during 1950 in all States as has prevailed for the last several years. except Maine, as shown in the map. The 5 per In March 1951, farm real estate values for the cent decline in that State was probably caused United States as a whole were 133 per cent above mainly by the withdrawal of price supports from those preceding World War II (1935-39 average). potatoes, its most important cash crop. Increases Thirty States had increases of 100 per cent or more of 17 to 20 per cent in land values occurred in the during that period. In Kentucky, Indiana, and Corn Belt States, and in Nebraska, Wyoming, Arkansas real estate values rose more than 200 per Oklahoma, Texas, Arizona, and Florida. The fa- cent. The Northeast region had the smallest invorable livestock situation has contributed to higher crease in land values. The two States with the land values in all of these States, although in Florida smallest increases over prewar years are Massachuthe strong demand for citrus fruit has probably been setts and Maine, with increases of 46 and 37 per more influential. The removal of cotton acreage cent, respectively. allotments has stimulated land values in the South- By July 1951, land values were 5 per cent higher west, particularly for irrigated land. In the South- than in March. This brought the index of aver- 1094 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

THE BALANCE SHEET AND CURRENT FINANCIAL TRENDS OF AGRICULTURE, 1951 age value per acre to 202 (1912-14=100), 17 per $33.20. This was 23 per cent higher than last year cent higher than on July 1, 1950. but 22 per cent lower than in early 1948. There Livestock on farms. The value of livestock and were about 65 million hogs on farms at the beginpoultry on farms was nearly 18 billion dollars on ning of 1951. This was 7 per cent more than the January 1, 1951, approximately a third more than number a year earlier and 4 per cent above the a year earlier (Table 4). Of the balance sheet 1940-49 average, but 22 per cent below the allitems, only the value of real estate exceeded this time peak reached in 1944. The uptrend in hog amount. There were more cattle, hogs, and sheep production stems from strong demand for pork and on farms but fewer horses, mules, chickens, and from abundant supplies of feed. turkeys. The values per head of all livestock ex- Sheep on farms were valued at 828 million dolcept horses and mules were higher on January 1, lars at the beginning of the year. This increase of 1951 than they were a year earlier. 51 per cent in inventory valuation within a year Cattle on January 1, 1951 were valued at 13 bil- exceeded that of any other class of farm animals. lion dollars, or 36 per cent more than on January The average value per sheep was $26.28, an all- 1, 1950. Their value at the beginning of 1951 was time record, and 47 per cent above the value for about three-fourths of the value of all livestock. the previous year. The number of sheep increased The average value per head of all cattle on January 762,000, or 2 per cent, reversing the decline that 1, 1951 was {160, or $37 more than their value last had lasted for eight years. The number of sheep year. The average value of milk cows was $218. on January 1, 1951—31.5 million—remained far These were the highest values per animal that below the 56 million of 1942. cattle have ever attained. The total number of The values of chickens and turkeys on farms likecattle increased 5 per cent during the year, to 84 wise were higher at the beginning of this year than million. This was 7 per cent above the average for they were last year. As numbers decreased, higher 1940-49 but 2 per cent below the record number in values per head were solely responsible for the in- 1945. Milk cows were valued in excess of 5 bil- crease in the aggregate value. Not counting comlion dollars; they accounted for 40 per cent of the mercial broilers, about 467 million chickens revalue, and about 29 per cent of the number, of all mained on farms on January 1, 1951—more than cattle. 3 to each person in the United States. On January 1, 1951 the number of cattle being As in other recent years, a decrease occurred in fattened on grain exceeded all previous records. the inventory value of horses and mules on farms. It was 5 per cent higher than the number in Jan- Both numbers and values per head declined as a uary 1950. consequence of the substitution of mechanical for The aggregate value of hogs on farms was more animal power. than 2 billion dollars as 1951 began, nearly a third Machinery and mctor vehicles on farms. Machinmore than at the beginning of 1950. Hogs ranked ery and motor vehicles on farms on January 1, 1951 next to cattle in value and constituted an eighth were valued at 15.5 billion dollars compared with of the value of all livestock and poultry. The aver- 14.3 billion at the beginning of 1950 (Table 5). This age value of hogs at the beginning of 1951 was resulted partly from higher prices but increase TABLE 4 LIVESTOCK AND POULTRY ON FARMS, UNITED STATES, JANUARY 1, SELECTED YEARS, 1940-51 [Number in thousands and value in millions of dollars] 1940 1945 1946 1949 1950 1 1951 Class Number Value Number Value Number Value Number Value Number Value Number Value Cattle 68,309 2,770 85,573 5,722 82,434 6,280 78,298 10,552 80,052 9,848 84,179 13,441 » Milk cows 24,940 1,428 27,770 2,761 26,695 2,994 24,416 4,716 24,573 4,342 24,579 5,368 Hogs 61,165 476 59,331 1,224 61,301 1,468 57,128 2,184 60,502 1,641 65,028 2,162 Horses 10,444 808 8,715 565 8,053 462 5,898 309 5,274 241 4,763 207 IVTules 4,034 467 3,235 434 3,010 401 2,348 274 2,149 214 1,990 163 All sheep * 52,107 329 46,520 399 42,436 411 31,654 544 30,743 548 31,505 828 Stock sheep 46,266 294 39,609 335 35,599 341 27,651 470 27,099 482 28,065 740 Chickens 438,288 265 516,497 626 530,203 671 448,676 746 480,834 655 466,686 678 Turkeys 8,569 18 7,203 42 8,493 49 5,540 48 5,986 37 5,975 38 Total 5,133 9,012 9,742 14,657 13,184 17,517 1 Revised. 2 Also includes sheep and lambs on feed for market. SEPTEMBER 1951 1095 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

THE BALANCE SHEET AND CURRENT FINANCIAL TRENDS OF AGRICULTURE, 19 $1 mainly from the exceptionally large quantity of conservation practices, and better management. motor vehicles and farm machinery that farmers During World War II gains in production per bought in 1950. worker on farms matched, and* in postwar years have exceeded, gains per worker in manufacturing TABLE 5 and mining. The increasing investment in agri- VALUE OF FARM MACHINERY AND MOTOR VEHICLES, UNITED cultural equipment, therefore, has more than finan- STATES, JANUARY 1, 1940-51 cial implications; it has profoundly affected physical production. [In millions of dollars] Crops stored on farms. The quantity of crops Year Total i Tractors m A o u b t i o le - s M tru o c to k r s - m Ot a h c e h r i n fa e r r m y remaining on farms at the end of any year is often only a small part of the quantity produced during the year. Truck crops move to consumers or to 1940 3.118 501 900 301 1,358 1941. 23.572 557 967 340 21,650 canneries or freezers as soon as they are produced. 1 1 9 94 4 2 3 . . 2 2 5 4 , , 2 3 7 9 7 4 8 7 8 2 0 0 1 1 , , 1 1 2 2 6 5 4 5 2 8 6 1 2 2 2 2 ,0 ,6 6 2 2 1 Most fruits are placed in off-farm storage shortly 1944. 25,657 871 1,055 672 2 2,984 after harvest. Other crops such as cotton, tobacco, 1945. 6,114 1,014 887 701 3,432 1946. 26,072 21,069 718 644 3,562 oil crops, and some of the grains have moved 1947. 26,732 21,233 880 2 710 3,831 chiefly to mills and processors, or are in market 1948. 2 8,862 2 1,729 1,283 2 930 4,838 1949. 211,706 2 2,346 1,763 M.182 6,334 channels by the end of the year. For the more 1950. 2 14,271 2 2,929 * 2,301 2 1,392 27,577 important crops held on January 1, the physical 1951. 15,517 3,164 2,784 1,485 8,016 stocks on farms at the beginning of 1951 as a proportion of amounts produced during 1950 1 Also includes harness and saddlery. 2 Revised. ranged from 9 per cent for cotton to more than 75 per cent for the feed grains. During 1950, the value of automobiles on farms The value of all crops stored on farms, including increased about 21 per cent; motor-trucks, 7 per those sealed under Commodity Credit Corporation cent; tractors, 8 per cent; and other farm ma- loans, totaled 7.7 billion dollars on January 1, 1951. chinery, 6 per cent. This was about 900 million dollars, or 14 per cent, Purchases during the year were the largest on more than a year earlier. Higher prices accounted record, amounting to 4.2 billion dollars compared for the increased value, as the physical quantity of with 3.8 billion in 1949. Purchases of farm ma- crop inventories declined about 1 per cent during chinery amounted to 1.7 billion dollars; of auto- this period. mobiles, 1.1 billion; of tractors, 1.0 billion; and of In view of the large numbers of livestock on motor-trucks, 441 million. farms in early 1951, the stocks of feed and forage The phenomenal rate at which farms have been are of special interest. Farm stocks of these crops mechanized during and following World War II (corn, oats, barley, sorghum grain, hay, corn silage is reflected by Table 2. The year-to-year perand forage, and sorghum silage and forage) were centage increase in the value (at 1940 prices) of valued at 6.1 billion dollars on January 1, 1951; motor vehicles and machinery on farms from 1940 they constituted four-fifths of the value of all crops to 1951 has been as follows: held on farms. The value of these feed and forage stocks held on farms was about 800 million dollars Percentage Percentage greater than that on January 1, 1950. The physical Year increase Year increase quantities, however, as measured by valuations at 1940 7.1 1946 8.2 constant prices, decreased 1 per cent. Nevertheless, 1941 11.0 1947 15.0' they continued near record levels. During 1950 1942 7.2 1948 14.5 the quantity of hay and forage stocks on farms 1943 -0.3 1949 11.7 increased 5 per cent; oats, barley, and grain 1944 3.5 1950 11.3 sorghums as a group increased 14 per cent. Farm 1945 2.0 stocks of corn, the major feed grain, were 10 per The increase in physical quantity over the entire cent lower at the beginning of 1951 than they were period was 138 per cent as compared with an in- a year earlier. crease of nearly 400 per cent in the value in current Total stocks of feed grains on January 1, 1951, dollars. Gains in productive power and efficiency both privately and Government owned, including of the American farmer that have resulted from farm stocks, and stocks in terminal markets, inthis increased mechanization, though large, cannot terior mills, elevators and warehouses, were at a be specifically isolated from gains such as those record high for that time of year. These stocks from improved seed, improved livestock, more soil amounted to 0.55 tons per animal unit to be fed. 1096 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

THE BALANCE SHEET AND CURRENT FINANCIAL TRENDS OF AGRICULTURE, 1951 This was slightly below the record level of 0.58 cent for peanuts, 29 per cent for soybeans, and tons per unit available at the beginning of both 136 per cent for cottonseed. 1949 and 1950. Total hay supplies were 1.02 tons Irish potatoes constituted the bulk of vegetables per roughage-consuming animal unit, the largest still on farms January 1, 1951. Although there supply per unit in the 14 years of record. were 10 million more bushels than a year earlier, The value of food grains (wheat, rye, buckwheat, farm stocks were valued at only 117 million doland rice) stored on farms at the beginning of lars, or 57 million less than those on January 1, 1951 was 697 million dollars, or about 7 per cent 1950. Between these two dates the market price higher than that of a year earlier. The aggregate of potatoes declined 37 per cent. The elimination physical quantity increased 3 per cent. Price in- of price supports on potatoes in 1951 has reduced creases were 4 per cent for wheat, 9 per cent for the acreage this year. rye, 20 per cent for buckwheat, and 18 per cent The value of tobacco stocks on farms decreased for rice. The part of the food crops that remains only about 4 million dollars. Stocks of cotton on on farms at the end of the year is smaller than that farms on January 1, 1951 were worth 176 million for feed grains. Food grains on farms January 1, dollars compared with 227 million a year earlier. 1951 amounted to only about 30 per cent of pro- Physical quantities were almost 50 per cent lower. duction during 1950. The larger part had moved Cotton prices were 52 per cent higher at the beto mills, elevators, and warehouses. ginning of 1951 than at the beginning of 1950 Total wheat stocks, both on farm and off farm, because of the small crop in 1950 and because of amounted to about 1 billion bushels on January 1, the greatly increased demand in 1951. 1951. This is larger than the January stocks Crops owned by farmers and stored off farms under for any other year since 1943. These large stocks CCC loan. Considerable quantities of crops owned resulted from continued heavy production and by farmers are stored of? farms. Estimates, howlower exports in 1949 and 1950. ever, are available only for those crops which were Farm inventories of oil crops, valued at 397 mil- pledged to the Commodity Credit Corporation as lion dollars at the beginning of 1951, were 61 per security for loans under the price support program. cent higher than were these stocks held a year On January 1, 1951 the value of crops stored earlier. The quantity of soybeans, the major oil off farms under CCC loan was 306 million dollars, crop held on farms, was 58 per cent greater; the or less than a third of the value in off-farm storage 1950 crop matured late and the movement to at the beginning of 1950 (Table 6). The physical mills was slow. Farm stocks of flaxseed, peanuts, quantity of these crops in 1951 is indicated to be and cottonseed were smaller at the end than at the only 32 per cent of the 1950 quantity. The reducbeginning of 1950. Compared with January 1, tion in commodities under CCC loan has resulted 1950, prices of oil crops were higher on January 1, primarily from substantially improved prices dur- 1951, ranging from 2 per cent for flaxseed, 9 per ing 1950. Cotton loans, which bulked large in past TABLE 6 CROPS OWNED BY FARMERS AND STORED OFF FARMS UNDER CCC LOAN, UNITED STATES, JANUARY 1, 1950 AND 1951 [Quantity in thousands of units and value in thousands of dollars] 1950 1951 Commodity Unit Quantity Value i Quantity Value i Cotton2 Bales 2,136 310,145 5 1,024 Corn Bushel 125,573 173,414 141 204 Wheat do. 226,192 449,292 118,717 240,996 Dry beans Hundredweight 3,826 26,205 983 7,471 Dry peas do. 121 376 0 0 Sorghum grain do. 9.308 19,868 16,135 30,679 Barlev Bushel 10,888 12,031 11,476 13,656 Soybeans do. 3,118 6,649 3,342 9.023 Flaxseed do. 5,064 18,933 214 768 Oats do. 3,324 42,323 700 594 Rice Hundredweight 912 3,942 120 638 Rye Bushel 239 4 301 373 511 Total "1,023,479 305,564 1 Market value or loan value, whichever is higher. 2 Excludes loans made to cooperatives whether or not individual cotton producers have right of redemption. 3 Bales of 500 pounds gross weight. 4 Revised. SEPTEMBER 1951 1097 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

THE BALANCE SHEET AND CURRENT FINANCIAL TRENDS OF AGRICULTURE, 1951 years, were reduced to insignificant amounts. Wheat Deposits. Data compiled by the Federal Reserve accounted for four-fifths of the value of all ofl-farm Banks on the ownership of demand deposits show crops under CCC loan on January 1, 1951 but it an increase in farmer-owned demand deposits of was not much more than half of the amount a 2.7 per cent during the year ended January 31, year earlier. Because of increased production, 1951. This compares with increases of 7.0 and 7.4 larger quantities of barley and sorghum grain were per cent respectively for demand deposits owned placed under CCC loan in 1950 than the year by other individuals and nonfmancial businesses. before, but the quantities pledged were small com- The demand deposits owned by these latter groups pared with the amount of wheat under loan. increased in all of the Federal Reserve districts Household furnishings and equipment. The value but farmer-owned demand deposits increased in of household furnishings and equipment on farms only seven of the twelve districts. No annual suron January 1, 1951 is estimated to have been 7.2 veys are made of the ownership of time deposits, billion dollars. The value of this inventory item but it is believed that those of farmers held steady increased by approximately 10 per cent from the as there was little change during 1950 in the time 6.5 billion of January 1, 1950. Sales of furniture deposits of banks located in agricultural counties. and equipment to farmers continued at a high Combined demand and time deposits of all indilevel during 1950 despite the fact that prices were viduals, partnerships, and corporations increased higher than in the year before. substantially during 1950 in all regions. When Bank deposits, currency, and United States savings broken down by type of county, as in Table 8, bonds. Farmers appear to have increased their the data indicate that the total deposits of farmers liquid financial reserves during 1950. The com- increased less than did those of others. In counties bined amount of bank deposits, currency, and that contain major trade and financial centers the United States savings bonds owned by farmers is increase was 7.7 per cent during 1950. For counties estimated to have increased about 200 million dol- that contain secondary trade and financial centers lars in 1950 (Table 7). This increase—about 1 per it was 7.5 per cent. These increases are much cent—reversed the decline of the preceding two greater than the 4.6 per cent increase in all counties years, during each of which the liquid financial that contain smaller trading centers or the 2.8 reserves of farmers dropped about 300 million per cent increase that occurred in 618 primarily dollars. Demand deposits and the value of United States TABLE 8 savings bonds owned by farmers appear to have PERCENTAGE INCREASE IN TOTAL DEPOSITS OF INDIVIDUALS, increased during 1950. Currency held by farmers PARTNERSHIPS, AND CORPORATIONS IN INSURED COMMERCIAL is estimated to have decreased slightly and time BANKS, BY REGION AND CLASS OF COUNTY, 1950 x deposits to have remained at about the same level [Per cent] as a year earlier. Class of county Selected LIQUID FINANCIAL ASSETS T AB O L W E N E 7 D BY FARMERS, UNITED Region cou A n l t l ies M tr a a a n j d d o e r a S ry e a c n t o r d n a d d - e S tr m ad a i l n le g r cu c a o l g t u u ri n r - - al STATES, JANUARY 1, 1940-51 financial financial center 4 ties ** center 2 center 3 [In billions of dollars] Northeast 6.4 7.1 5.8 3.9 1.2 Deposits United Appalachian.. 7.1 10.0 9.2 4.9 2.1 Year Total Currency s S av ta i t n e g s s S La o k u e t h S e t a a s te t. s . . . . . 9 7 . . 3 4 1 ( 1 6) .8 1 10 0 . . 2 4 2 8. . 3 3 -0 5 . . 2 0 Demand J Time bonds 2 Corn Belt.. . . 6.6 8.1 7.5 3.9 2.7 Delta States.. 5.5 (6) 6.5 4.9 5.9 Great Plains.. 3.8 (6) 9.4 2.3 1.4 1940 4.1 1 .0 1.5 1.4 0.2 Texas-Oklahoma. 11.1 18.8 8.7 8.3 6.1 1941 4.7 1.1 1.7 1.5 0.4 Mountain 7.3 (6) 8.2 6.5 4.1 1942. 5 8 1 5 2 2 1.6 0.5 Pacific 5.7 5.8 4.3 5.7 5.5 1943 8.1 2.0 3.2 1.8 1.1 1944 11.0 2.7 4.0 2.0 2.3 United States.. 6.8 7.7 7.5 4.6 2.8 1945 14.5 3.3 5.0 2.5 3 7 1946. 18 0 4 0 6 2 3.3 4 5 1 Data supplied by Federal Deposit Insurance Corporation. 1947. ... 19.4 4.0 7 3 3.6 4.5 2 All counties that had total deposits of 1 billion dollars or more 1948 20.1 3.9 7.6 3.8 4.8 on June 30, 1948; also the District of Columbia and the independent 1949 19.8 3.8 7.2 3.8 5.0 city of St. Louis, Mo. 3 All counties that had total deposits of 100 million to 1 billion 1950 19 5 3 7 6 8 3 8 5 2 dollars on June 30, 1948. 1951 19.7 3.6 7.0 3.8 5.3 4 All other counties of the United States, including selected agricultural counties. 6 618 of the counties that had total deposits of less than 100 1 Federal Reserve estimates, adjusted to a January 1 basis, are million dollars on June 30, 1948. used for the period 1944-51. 6 No county in this region had 1 billion dollars of deposits on 2 Redemption value. June 30, 1948. 1098 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

THE BALANCE SHEET AND CURRENT FINANCIAL TRENDS OF AGRICULTURE, 1951 agricultural counties. The greater percentage in- debt occurred in 1950, a year in which farmers crease of deposits in counties that contain the slightly increased their liquid financial reserves. larger cities, in which business and urban indi- Net worth of farmers' cooperatives. Closely assovidual accounts predominate, is reflected by data ciated with the farm business are the thousands of for all major regions except the Pacific. farmers' cooperatives scattered throughout the It may appear surprising that farmers increased United States. The financial interest of farmers in their deposit balances during 1950 in view of the their associations represents an investment that increase in farm expenditures, particularly after greatly facilitates the production and marketing the Korean outbreak. The main explanation is of agricultural products and the maintenance of that farmers greatly increased their borrowing dur- the farm plant. During the period for which estiing 1950. Excluding price support loans guar- mates have been made the net worth of farm coanteed by the Commodity Credit Corporation, the operatives has been steadily growing. For Januincrease in agricultural loans, including farm- ary 1951, the net worth of these associations has mortgage loans, was nearly 1.4 billion dollars. been estimated at 2.2 billion dollars. This is 9 per This large expansion of loans helped farmers to cent more than the net worth of a year earlier and finance rising costs, make large expenditures for 164 per cent above the level of January 1, 1940. livestock and capital equipment, and, at the same Among the cooperatives having the greatest time, increase their working balances at banks. growth during recent years are the marketing and Savings bonds. During 1950 purchases of United purchasing associations, the production credit asso- States savings bonds by farmers declined to the ciations, and farmers' mutual fire insurance comlowest level since prewar, and redemptions of panies. The net worth of marketing and purchassavings bonds for farmers rose to the highest level ing associations, which amounts to more than half since 1946. In fact 1950 was the first year since the net worth of all farm cooperatives, increased 1946 in which farmers cashed a larger amount of 273 per cent between 1940 and 1951. This insavings bonds than they bought. For the Series A crease has been associated with higher prices for through E, redemptions exceeded purchases in all products marketed and supplies sold, increased inregions except the Great Plains. The redemption ventories, new facilities, and additional service value of all United States savings bonds owned rendered. The production credit system and by farmers, however, continued to increase during farmers' mutual fire insurance companies experi- 1950 as interest accruals more than offset the enced increases in net worths of 335 per cent and excess of redemptions over purchases. 231 per cent respectively, between 1940 and 1951. The drop in purchases and the increase in re- The increased surplus and reserves of the insurance demptions of savings bonds by farmers during 1950 companies have resulted largely from increased doubtless resulted from higher farm costs and membership, higher valuations of insured buildings, increased purchases of farm and household equip- and relatively low fire losses. The large increase ment. Some of the buying was of goods that were in the loan volume and the relatively small losses expected to become scarce or higher priced as a of production credit associations are primarily reresult of the Korean situation and the defense sponsible for their higher net worth. program. Longer run trends. During the war, net farm in- CLAIMS come rose far above prewar levels but supplies of Claims on agricultural assets are of two general automobiles, trucks, tractors, machinery, and build- classes: (1) liabilities, which are divided into real ing materials were restricted and farmers saved a estate and non-real-estate debt; and (2) equities, considerable part of their incomes for future use. which represent the value of the residual rights in They also made large payments on their debts. agricultural assets belonging to the proprietors— From January 1, 1942 to January 1, 1946, the liquid owner-operators, tenants, and landlords. Included financial reserves of farmers increased 12.2 billion among these proprietors are individuals, financial dollars; farm debts (excluding price support loans) institutions and other corporations, and Federal, were reduced about 2.3 billion dollars. State, and local government agencies. The decline in net farm income following 1947 Farm real estate debt. Loans secured by morttightened the cash position of farmers, particularly gages on farm real estate in the United States inas many continued to make heavy investments in creased again during 1950. The total amount of their farms. Although the liquid financial re- these loans outstanding on January 1, 1951 was a serves of farmers during this period declined only little more than 5.8 billion dollars—the largest 0.4 billion dollars, farm debts increased 3.0 billion beginning-of-the-year total since 1943 (Table 9). dollars. About 1.4 billion dollars of the increase in The increase during 1950 amounted to 7.8 per cent, SEPTEMBER 1951 1099 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

THE BALANCE SHEET AND CURRENT FINANCIAL TRENDS OF AGRICULTURE, 1951 TABLE 9 FARM-MORTGAGE DEBT HELD BY PRINCIPAL LENDER GROUPS, UNITED STATES> JANUARY 13 1940-51 WITH PERCENTAGE CHANGE, 1940-51 AND 1950-51 [Dollar amounts in thousands] Total Federal Federal Farm Farmers Home Life Insured Individuals Year debt out- Land Mortgage Adminis- insurance commercial and miscelstanding Banks1 Corporation J 2 traction 3 companies * banks laneous 1940... $6,586,399 $2,009,820 $713,290 $31,927 $984,290 $534,170 $2,312,902 1941... 6,491,435 1,957,184 685,149 65,294 1,016,479 543,408 2,223,921 1942... 6,372,277 1,880,784 634,885 114,533 1,063,166 535,212 2,143,697 1943... 5,950,975 1,718,240 543,895 157,463 1,042,939 476,676 2,011,762 1944... 5,389,080 1,452,886 429,751 171,763 986,661 448,433 1,899,586 1945... 4,932,942 1,209,676 347,307 193,377 933,723 449,582 1,799,277 1946... 4,681,720 1,078,952 239,365 181,861 884,312 507,298 1,789,932 1947... 4,777,355 976,748 146,621 189,300 890,161 683,229 1,891,296 1948... 4,881,744 888,933 107,066 195,069 936,730 793,476 1,960,470 1949... 5,108,183 868,156 77,920 188,893 1,035,719 847,841 2,089,654 1950... 45,407,310 906,077 58,650 188,855 1,172,157 4879,416 2,202,155 1951... 5,827,586 947,431 44,008 214,047 1,340,705 943,387 2,338,008 PERCENTAGE CHANGE 1940-51 -11.5 -52.9 -93.8 570.4 36.2 76.6 1 1 1950-51 7.8 4.6 -25.0 13.3 14.4 7.3 6.2 1 Includes purchase-money mortgages and sales contracts. 2 Loans were made for Corporation by Land Bank Commissioner. Authority to make new loans expired July 1, 1947. 3 Data for 1940-41 refer to tenant-purchase loans only. Thereafter data include farm-development (special real estate) loans, beginning 1942; farm-enlargement loans, beginning 1944; project-liquidation loans, beginning 1945; and farm-housing loans, beginning 1951. Data also include similar loans from State Corporation trust funds. 4 Revised by Bureau of Agricultural Economics. compared with an increase of 5.9 per cent for 1949 The increase in the number of mortgages reand 4.6 per cent for 1948. corded during 1950 over that of 1949 was some- The increase in farm-mortgage debt during 1950 what greater during the first half of the year than apparently stemmed for the most part from an in- during the latter half—8.8 compared with 4.9 per crease in new borrowings. The dollar volume of cent. A 6 per cent increase in the number of farm-mortgage recordings has been at a relatively voluntary farm transfers, which usually occur in high level since 1946, but in 1950 it was 18 per cent greater numbers during the first half of the year, above 1949 and 15 per cent above the 1946-49 undoubtedly was an important contributory factor. average. Of the total farm sales made in 1950, 54 per cent Farm-mortgage releases, which had been de- were credit-financed—a slightly smaller proporclining in recent years, also increased somewhat tion than in either of the two preceding years. in 1950. This increase probably came about through It is likely that some farmers have borrowed on the renewal or expansion of existing mortgages, real estate mortgages to finance improvements and or through the refinancing of them by other lenders. purchases of equipment. Others probably have The sizable increase in the dollar amount of refinanced non-real-estate loans previously obtained farm-mortgage recordings during 1950 represented for these purposes. Non-real-estate loans have a 10 per cent increase in average size and a 7 permore than doubled since 1946, and some farmers cent increase in number of mortgages recorded. probably found it necessary to refinance some loans The increase in average size reflects largely the of this character on a long-term basis. sharp increase in farm real estate values. Unlike The sharpest percentage increases in farm-mortthat in other years, most of the expansion in loan gage debt during 1950 occurred in the Mountain size in 1950 occurred during the last half of the and Southeastern States, where they amounted to year, when a large part of the rise in land values 13.6 and 11.5 per cent, respectively. Both of these took place. The average size of farm mortgages regions have shown sharp gains in debt in other recorded by all lenders increased from $4,280 in recent years. The smallest increases were registered 1949 to $4,700 in 1950, or 10 per cent, but for the in the Northeastern and Pacific regions. In the last half of 1950 the increase over the same period former the increase approximated 4 per cent, and in 1949 was 18 per cent. However, the ratio of in the latter 6 per cent. On a State basis, increases debt to the purchase price of credit-financed sales ranged from 2 per cent in Pennsylvania to about was slightly lower in 1950 than in other recent 23 per cent in Florida; 14 States had increases of years. 10 per cent or more. 1100 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

THE BALANCE SHEET AND CURRENT FINANCIAL TRENDS OF AGRICULTURE, 1951 Farm-mortgage loans outstanding on January substantially its mortgage holdings in 1950. The 1, 1951, were approximately 25 per cent greater 13 per cent gain, however, can be attributed to than at the beginning of 1946, when the lowest farm-housing loans, as the outstanding balances of level in more than three decades was reached. Since its farm-ownership loans actually declined. During 1946, increases of 50 per cent or more have taken the year about the same amount of funds was availplace in the Mountain, Southeastern, and Delta able for helping farmers to become owners as for States. Only in the Great Plains was the debt helping them to acquire better housing, but the on January 1, 1951, below the 1946 level. In spite amount of new farm-ownership loans was more of recent sharp increases in most regions, total than offset by repayments of existing loans. Loans farm-mortgage debt at the beginning of 1951 was of other lenders that are insured by this agency still about 12 per cent below that of January 1, (included in the loan data for the respective lenders) 1940. In the Great Plains it was 45 per cent lower showed another sharp increase in 1950 and totaled and in the Corn Belt 30 per cent lower. On the more than 29 million dollars at the beginning of other hand, in the Southeastern, Delta, and Moun- 1951 compared with nearly 17 million a year earlier. tain States total mortgage debt exceeded that of Interest charges payable on outstanding farm 1940 by 27 per cent or more. mortgages during 1950 amounted to 262 million Lenders have increased their mortgage holdings dollars, or 8 per cent more than in 1949. Nearly in varying proportions. The largest percentage gain all of the increase in interest charges was the was reported by life insurance companies. Their result of the increase in farm-mortgage debt. Inholdings were about a seventh larger at the be-terest rates on outstanding loans rose onlv slightly ginning of 1951 than a year earlier, and they con- and averaged 4.7 per cent on January 1, 1951, comstituted 23 per cent of the total farm-mortgage pared with 4.6 per cent at the beginning of each debt (Table 9). Insurance companies made sub- of the years 1946-50. Expressed on a per-acre stantially more new loans in 1950 than in 1949,basis (all land in farms), interest charges for 1950 and increased the average size of their loans as well. averaged 22.9 cents. The index of interest charges Banks expanded their farm-mortgage holdings per acre rose from 76 (1910-14=100) for 1949 somewhat more in 1950 than they did during 1949. to 82 for 1950. An increase in both number and average size of Non-real-estate debt. On January 1, 1951 the new mortgage loans caused farm-mortgage invest- non-real-estate debt of farmers, excluding price ments of banks to rise approximately 7 per cent support loans made or guaranteed by the Comduring 1950. On January 1, 1951 these investments modity Credit Corporation, reached more than represented 16 per cent of the total farm real estate 6 billion dollars (Table 10). This was 18 per cent debt. higher than a year earlier and 115 per cent above Individuals and miscellaneous lenders, who hold January 1, 1946. the largest part of all outstanding farm-mortgage The rise in non-real-estate debt during 1950 is a loans (40 per cent in 1951), increased their loans resumption of the rapid rate of expansion that 6 per cent during 1950. The number of mortgages recorded by individuals in 1950 was smaller than TABLE 10 in 1949, but the average size was aopreciably larger. The Federal Land Banks, which are the largest FARMERS' NON-REAL-ESTATE DEBT, UNITED STATES JANUARY 1, 1940-51 holders of farm mortgages among the Federally [In billions of dollars] sponsored agencies, held 5 per cent more in loans at the beginning of 1951 than they did a year ~ " Price support earlier. This increase was slightly greater than that loans made or Other loans Loans and o ro f s e 1 9 fo 49 r , t h w e h f e i n rs t t t h im e e to i t n al m lo o a re n s t h o an f t a h d e e c L a a d n e d . T B h a e n s k e s Year Total g C C ua o p r r e m o a d r n m i a t t t e o i C o e d o d n it r y b - yby s F a p b e g o a d e n n e n s k r c o a s i r l e a e l s y d nd b b o l y o l e a k n n m d e c e i o s r r u e c s e d s J l i - ts Banks also made more new loans in 1950 than in 1949 and the loans averaged slightly larger in 1940 3.4 0.4 1.5 1.5 amount. Loans held by the Federal Farm Mort- 1941 3.9 0.6 1.6 1.7 1942 4.1 0.6 1.8 1 .7 gage Corporation dropped another 25 per cent as 1943 4.0 0.8 1.7 1.5 1944 3.5 0.6 1.7 1.2 the Corporation proceeded with the liquidation of 1945 3.4 0.7 1.6 1.1 its loans. This agency has made no new loans 1 19 9 4 4 7 6 3 3 . . 2 6 0 0 . . 1 3 2 1 . 0 .7 1 1 . . 2 5 since July 1, 1947. The Federal Land Banks and 1948 4.2 0.1 2 3 1 .8 1949 6.1 1.2 2.7 2.2 the Corporation together held about a sixth of all 1950. 6.9 1.7 2.8 2.4 farm-mortgage loans on January 1, 1951. 1951 7.0 0.8 3.4 2.8 The Farmers Home Administration increased 1 Tentative estimates based on fragmentary data. SEPTEMBER 1951 1101 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

THE BALANCE SHEET AND CURRENT FINANCIAL TRENDS OF AGRICULTURE, 1951 prevailed from the end of the war to 1949, when a during 1950. The Delta States and the Southeast marked slackening in the rate of increase occurred. had the smallest increases during 1950—5 per cent By 1949, farmers had completed many of the more and 6 per cent, respectively. necessary postwar capital replacements and addi- Three-fourths of the non-real-estate debt that tions, and the downturn in agricultural prices was farmers owed to the principal institutional lenders causing both borrowers and lenders to be cautious was owed to banks, as shown in the chart. This in the use and extension of credit. These forces, tending to restrain the expansion of credit, con- NON-REAL-ESTATE FARM LOANS tinued into 1950. Following the Korean outbreak, however, the use of non-real-estate credit increased Held by Banks and Federally Sponsored Agencies * rapidly. New factors introduced by the hostilities BIL. DOLLARS were expectations of higher prices and shortages of the things farmers buy, and a belief by many people that farming would become more profitable. The result was the use of large amounts of credit for buying, beyond current needs, goods for both production and consumption. Also, farm costs rose further. In the Midwest another factor was the heavy purchases of feeder cattle that were made partly because of the fear in the early fall 1910 1920 1930 1940 1950 that much of the 1950 corn crop might be soft and unmarketable. Data from Production Credit Associations indicate that the non-real-estate credit expansion that debt to banks increased 23 per cent during 1950, began in the summer of 1950 resulted more from the largest increase for any class of lender. In the the increase in the amount borrowed per farmer Midwest, where the demand for credit was espethan from an increase in the number of farmers cially heavy, banks made a larger proportion of the using credit. The number of PCA loans made loans than did other lenders. Also, banks mayduring the latter half of 1950 was about 5 per cent have participated extensively in financing congreater than the number made during the latter sumer expenditures for farmers in 1950. Outhalf of 1949, but the average size of loans made standing loans of Production Credit Associations inincreased 18 per cent between these two periods. creased 17 per cent during 1950, and loans and The number of PCA loans outstanding at the end discounts of the Federal Intermediate Credit Banks of 1950 was less than 1 per cent above a year to the other short-term lenders served by them, earlier, but the average size of loans outstanding increased 22 per cent. The Farmers Home Adminwas 16 per cent higher. istration, however, experienced a 4 per cent de- Non-real-estate debt of farmers (not including cline in its outstanding non-real-estate loans during CCC loans) falls into two general classes: The debt 1950. Congress authorized 18 million dollars more to banks and the Federally sponsored lenders; and in FHA loans for the year ended June 30, 1951 the debt to the miscellaneous lenders such as merthan for the year before, but repayments on outchants, dealers, individuals, and finance companies. standing loans were sufficient to offset the increased Only the data from banks and the Federally sponlending. A substantial repayment was made on sored lenders are available on a State basis to show loans which had been outstanding since before area variations. the war. For the year 1950, the non-real-estate farm loans For the postwar period as a whole, January 1, of these principal institutional lenders—banks and 1946 to January 1, 1951, the non-real-estate debt Federally sponsored agencies—increased 18.8 per owed by farmers to the institutional lenders cent for the United States as a whole. A credit doubled. The greatest increase for any region (150 expansion occurred in all States except Vermont, per cent) was in the Corn Belt. The Northeastern North Dakota, and Arkansas, where slight deand Lake States regions, where dairying is imcreases of 1.8 per cent, 0.7 per cent, and 0.9 per portant, were next with increases of 123 per cent cent, respectively, occurred. Increases of 25 per and 121 per cent, respectively. The Delta States cent or more were shown in a solid block of States and the Southeast region, both in the old Cotton —Illinois, Iowa, Missouri, Nebraska, Kansas, Okla- Belt, experienced the smallest increases in non-realhoma, and Colorado. Most of these States had sub- estate debt during the postwar period—31 per cent stantial increases in the number of cattle on feed and 48 per cent, respectively. 1102 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

THE BALANCE SHEET AND CURRENT FINANCIAL TRENDS OF AGRICULTURE, 1951 In the Midwest, despite a large increase after An interesting comparison of this estimated World War II, the current debt is still well below 9-billion-dollar repayment of short-term debt can the peak following World War I. In that region be made with cash farm receipts of 28 billion dola drastic liquidation in non-real-estate debt occurred lars in 1950. Farmers, of course, had other sources in the twenties and early thirties. The current of funds with which they repaid debts but for seasonal average level in the Southern region is many individuals the repayments claimed a subslightly lower and in the Northeast slightly higher stantial amount of their 1950 income. It can readily than the debt at the 1920 peak. In the Western be seen that any disruption of income could quickly region, where a relatively large expansion in agricause difficulty for many farmers in repaying their culture has occurred since World War I, the 1951 loans. level of non-real-estate farm debt is considerably The expansion of non-real-estate debt, part of higher than in 1920. which is seasonal, continued into 1951 and by The current high level of non-real-estate credit in July the debt was estimated at more than 7 billion use is of special interest because of the vulnerability of this type of credit to sudden declines of farm dollars. No estimates of the total volume of such income. Short-term loans have a relatively rapid debt exist for the World War I period but that turnover and the amount of loans outstanding on part owed to banks and Federally sponsored agenany one date is only a part of the total amount cies now exceeds, for the first time, the peak level of credit that is used and repaid during the year. of July 1920. For example, in recent years the amount of cash Outstanding loans made or guaranteed by the repayments on PCA loans has been about twice the Commodity Credit Corporation totaled 806 million amount of loans outstanding at the end of the year. dollars on January 1, 1951, or less than half of the This 2-to-l rate of turnover may not exist for the amount outstanding a year earlier. The bulk of entire non-real-estate farm debt of more than 6 bil- 1950 crop production was absorbed by the market lion dollars (including debt from miscellaneous because of the rise in agricultural prices during sources as well as from institutional lenders but the second half of 1950. Reports of the Com- •excluding CCC loans) that has been estimated for modity Credit Corporation indicate that corn and January 1, 1951. Assuming the rate to be 1/4 to 1, wheat loans on January 1, 1951 were little more the repayment on short-term loans by farmers than half of the amount existing on January 1, during 1950 would have been more than 9 billion 1950; cotton loans, which had totaled more than dollars. The amount that farmers paid off on 300 million dollars at the beginning of 1950, were their long-term farm real estate loans probably did not exceed a billion dollars during that year. down to V/s million at the beginning of 1951. SEPTEMBER 1951 1103 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE BANK FOR INTERNATIONAL SETTLEMENTS The Twenty-first Annual Report of the Ban\ for crease in population is already so large that the International Settlements, covering the year ending raising and even the maintenance of the standard March 31, 1951, was submitted to the annual of living are becoming difficult problems. But for general meeting at Basle on June 11, 1951, by the several European countries with considerable possi- General Manager, M. Roger Auboin. Selections bilities of further economic development the danger, from the report, presenting the subjects of wider between the two wars, came decidedly from the general interest, are given herewith. opposite direction. At present the birth rate required to maintain a stable population is, as a rule, about INTRODUCTION 20 per mille in Europe, and the rise in birth rates from the low point reached in the 1930's is not The outbreak of the conflict in Korea suddenly likely to lead to overpopulation in this continent. gave a new slant to the economic as well as the It will obviously be some years before the higher political outlook, thus dividing the year 1950 for birth rate affects conditions on the labour market— many countries—and above all for the United States indeed many countries in Europe still have difficulty —into two contrasting halves, the change in trend in finding sufficient manpower for all their ecobeing reflected most strikingly in the development nomic and other needs. Whatever may be the of prices, production, and the network of interparticular difficulties of a few countries, there is national trade and payments. Inevitably, the great no "structural" reason for uneasiness about surchanges in the United States had their repercussions plus manpower in general in Europe—and that is on the economic and financial position of other even truer of the Western World as a whole—procountries. It is, however, important not to exagvided more rational methods for utilising existing gerate the extent of this sudden twist but, rather, possibilities are arrived at and sufficient freedom to examine the evolution of the various economies of movement is ensured. in relation to previous developments. As far as There was more direct damage to property in most European countries are concerned there was Europe in the Second than in the First World War little increase in armament expenditure during —and there was also much material damage in 1950, and in many cases the more radical alterareas such as the Malay Peninsula and Indonesia, ations in the cost of living and in wages did not which had been untouched by actual hostilities durtake place before the early months of the following ing the First World War. In addition, the enforced year. 1950 was essentially a year of continued conneglect of repairs and maintenance and the wear solidation of that astonishing progress which Europe and tear of household articles, etc., represented, in had been making with only slight interruptions general, a greater drain on resources in the Second since the crisis of 1947—a year which had been World War. The recuperative power of modern fraught with such difficulties that the rather easyeconomies is, however, considerable and, although going postwar optimism vanished abruptly and repair of war damage will still be a charge in the new, determined efforts were made to get a grip budgets of several countries for some 10 or 15 years on the situation through national exertions helped to come, the apparatus of production has, within by substantial aid from the United States. the space of a few years, been re-established in such In many countries of the world the natural ina way as to give a yield well above the prewar level. NOTE.—The passages reprinted herewith constitute about There has been another kind of damage less one-fifth of the main text of the report. Of the 10 chapters, easily made good, viz. the loss of foreign investthe one dealing with current activities of the Bank is ments. As a result of the two World Wars, France omitted. The remaining chapters are represented by selections which omit most of the discussion of individual almost lost its status as a creditor nation. In the countries and present the portions containing many of the First World War the United Kingdom used up more important conclusions and criticisms offered by the some 850 million pounds sterling of overseas in- Bank. The complete report contains numerous tables and vestments and in the Second World War about charts. Selections from the first twelve Annual Reports of the 1,100 million (out of a total of approximately 3,700 Bank were published in the Federal Reserve BULLETIN in million in 1939). On the second occasion it also the years 1931-43. A reprint of brief sections of the incurred debts to other countries in order to Thirteenth Report was issued in pamphlet form by the Board obtain the resources needed for the prosecution of of Governors in November 1944. For reference to later reports, see BULLETIN for August 1950, p. 985. the war. Some 3,000 million pounds sterling was 1104 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE BANK FOR INTERNATIONAL SETTLEMENTS added in this way to the sterling balances, which production. But in many countries the disequilibamounted to about 800 million before the war, rium was too large to be removed by this method when they were held by various central banks or alone. Nor did it help matters when the increased private firms and individuals as part of their output was allowed to give rise to a corresponding monetary reserves or as a working balance. Now amount of fresh purchasing power (and still less that prices of raw materials and most other com- when the expansion of production was financed modities dealt in within the sterling area are, on by new central bank money). an average, quite three times as high as before To reduce an existing volume of money is by the war, a more tolerable relation is being re-estab- no means simple, and only a few countries have lished between the current liabilities of the United tried it; but steps to prevent fresh money from Kingdom and its liquid resources—but at the being issued can more easily be taken and such same time the rise in prices has been reducing the action will ensure that, with increasing output real value of long-term bonds and has thus caused (and in most cases increasing prices), equilibrium a further forfeiture of the fruits of investments will ultimately be reached between the volume of made out of the past savings of the European money and the supply of goods and services. countries. Then—and only then—will the balancing mechan- The losses in foreign investments necessitate ism operate, first on the home market (whose changes in the flow of goods and services entering capacity to adapt itself to changing conditions will into international trade and may be regarded as benefit by the renewed effectiveness of the price part of the disorganisation caused by war. When system) and afterwards, by natural sequence, in trade currents are diverted from their normal chan- relation to other economies as well. Extraordinary nels, price structures distorted and monetary sys- as it may seem, balance-of-payments problems have tems upset, it may take a considerable time to been very widely regarded as something separate overcome the disruptive effects; and such damage from the internal economy, although it could be may well turn out to be a more serious consequence shown for one country after the other that the of the war than material destruction. aggregate demand for goods and services exceeded At the time when the Second World War came the supply—the consequence being that imports to an end, the internal monetary and price mechan- tended to rise and exports to fall and a "gap" to ism had been disorganised to almost as great an emerge which had to be filled by means of domestic extent as the system of international trade and reserves or foreign aid. payments—as a result, on the one hand, of the It is no easy matter to reinstate "the stabilising smallness of output for civilian requirements and, mechanism" in the interplay of finance, producon the other, of the excessive volume of money tion, and commodity markets after it has been created by war finance. In various countries a put out of gear by the war; and the task is not spectacular rise in prices ensued from this lack made easier by the fact that ideas have survived of balance between the volume of money and the from an earlier period which are certainly not supply of goods. In others prices and wages were applicable to the task of postwar reconstruction. kept more under control but, so long as the excess The great depression of the 1930's, with the tersupply of money remained, production was ham- rific losses it occasioned and the persistence of a pered and distorted by the lack of adequate stocks, high unemployment figure in some of the leading by "bottlenecks," and by the scarcity of labour industrial countries, made a very great impression in essential industries. In addition, lack of con- on people's minds and affected their economic sumer goods seemed to discourage effort on the beliefs more profoundly than either of the two part of the worker even more effectively than high World Wars. In the theoretical sphere there was tax rates. In his Presidential address to the Royal Keynes's "General Theory of Employment, Interest Economic Society in 1947, Sir Hubert Henderson, and Money" (published in 1936) and in the pracdiscussing the "repressed inflation" in the United tical sphere the "New Deal" in the United States Kingdom, expressed the opinion that: and, in a different setting, Germany's policy of "The excess of aggregate demand today is prob- full employment, public works, and rearmament, ably responsible for a greater waste of productive financed under conditions approximating to a power than resulted from the deficiency of aggre- closed economy. In all these cases "cheap money" gate demand in the 1930's; it cannot be allowed to and substantial additions to the volume of monetary persist indefinitely without disaster." demand played a decisive role—and there was To cure the disequilibrium between the volume clearly much to be said for an expanding supply of money and the supply of goods and services the of purchasing power at a time when goods were most obvious remedy would seem to be to increase piling up, investment possibilities were less obvious, SEPTEMBER 1951 1105 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE BANK FOR INTERNATIONAL SETTLEMENTS foreign trade was largely stagnating, and a great grounds for fearing, in the near future, the emerdeal of the available productive capacity (men, gence of a prolonged depression, since investment machines, and materials) remained unutilised. requirements (kept waiting during the war and That was, however, a most unusual situation, and expanding with the increase in population) were it underwent a radical change when the Second considerable. World War broke out. But strangely enough the One thing, then, is certain: the state of affairs policy of maintaining a low level of interest rates which followed the Second World War was just could still be applied, since in wartime the volume the opposite of the situation in the 1930's. Inflation of government borrowing would not be affected has reigned instead of a slump in prices; there by higher rates and the volume of private invest- has been no abundance of savings but a scarcity of ment could be adjusted through the operation of resources for financing investments. It has proved direct controls (in particular, allocation of mate- singularly difficult, however, to liberate men's minds rials). The system seemed to work well under the from the hold which prewar ideas and policies conditions prevailing, and authoritative voices fore- had obtained over them. Perhaps the greatest cast that it would continue to be applied after the effect was produced by the rapid recovery of the war—this view receiving support from the wide- United States from the minor recession of 1949— spread assumption that a depression would set a recovery which had already firmly asserted itself in not long after hostilities had ceased and that before the outbreak of the conflict in Korea in the conditions would thus be similar to those which middle of 1950. And with new rearmament exhad characterised the 1930's. penditure coming on top of a pre-existent boom, Contrary to these expectations, business remained it is obvious that the main monetary task now is good, with a pronounced sellers' market and a to stop inflation from getting the upper hand. nearer approach to full employment than had ever Some serious efforts characterised by a new been known in peacetime. Nevertheless, the idea sense of realism were made in individual countries; of a coming depression was hard to kill and, quite but it is questionable at what rate results could apart from the inference to be drawn from the have been obtained had it not been for the promise continued cheap-money policy of most financial of aid from the United States in 1947 and its actual authorities, the attitude of the business community appearance in 1948. This aid was conceived, in bore witness to this fact. Among producers and the first place, as a means of helping to pay for traders all over the world a fear of overlarge sup- imports, principally from the dollar area. But at plies, which would bring prices down to an unre- the same time it had another aspect: it represented munerative level, caused a tendency to restrict pro- "additional free resources" equivalent to savings duction of raw materials and other goods too. It on the home market—indeed, more valuable than was not sufficiently realised that in the United States "domestic savings" since, as dollar purchasing (regarded as the prospective country of origin of power, it could be used to buy materials, machines, the new depression) the relation which costs and and articles which would otherwise have been hard prices bore to the volume of credit (as indicative to obtain and the lack of which would have meant of the monetary demand) was this time very troublesome bottlenecks. For the countries of different from what it had been after the First Western Europe it is estimated that, in the years World War. July 1948 to June 1950, the rate of their own net There is a marked similarity in the movements domestic saving worked out at 10-12 per cent of of the credit supply in the two postwar periods. the national income; on an average, Marshall aid But in the First World War the rise in costs and was equal to about 3% per cent of the national prices was greater than the expansion of credit, income, and thus increased the available savings while in the Second World War, thanks largely by about one-third—a very real contribution, withto the price and cost controls then imposed, the out which the volume of investment would have cost-and-price structure was kept well within the had to be severely curtailed. The amounts voted credit volume. Thus on this occasion there was no as Marshall aid and thus made available to the need for any downward adjustment of costs and Economic Cooperation Administration (ECA) prices once the war was over—on the contrary, a reach a total of 12.3 billion dollars for the whole considerable rise in costs and prices was indicated, period from April 1948 to June 1951. in order to restore equilibrium—and consequently As long as the actual flow of Marshall aid goods there was no reason to expect a repetition of the and services was on the increase, it was fairly easy short, though sharp, recession which had set in to keep withdrawals from exceeding the current in 1920 immediately after the end of the First accumulations of counterpart funds; now that Mar- World War. Nor did the situation provide any shall aid deliveries are gradually falling off, how- 1106 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE BANK FOR INTERNATIONAL SETTLEMENTS ever, a rather difficult problem arises, since it is materials to the United States, which in the new necessary to ensure that an outpayment of funds situation became more clearly than ever the centre by the central bank will not add to the inflationary of economic influence on the world markets. forces which will anyhow be a concomitant of the As a result of the increased purchases of foreign rearmament drive. This problem becomes part of products by the United States there was, in the the general question of how to prevent investments first place, a marked improvement in the earning and consumption from being financed by means of capacity and the monetary reserves of the rawnewly created money; for in dealing with this material-producing countries. In 1950, Latin matter care must be taken that there is no undue American countries thus increased their gold and "activation" of financial resources which have been other holdings by fully 400 million dollars, the accumulated in an earlier period. whole of the improvement falling in the second This is a problem for the present and for the half of the year. Indonesia and the Philippines future; in reviewing developments during the showed an increase of over 200 million dollars, last two to three years it becomes manifest that, almost all in the second half of 1950. Very conin the fight against inflation, Marshall aid has been siderable amounts of dollars were earned by the of great help through the goods which it has raw-material-producing countries of the sterling brought to the market and through the resources area; in place of the collective deficit of almost which have become available for investment or 400 million dollars which they had had in relation retirement of debt—these being different aspects to the United States in 1949, the countries of the of the same beneficial influence. sterling area (with the exception of the United Kingdom and the other European members) had in 1950 a surplus of nearly the same amount. The A NEW SET OF PROBLEMS FROM THE MIDDLE OF 1950 resulting net gain in the monetary reserves of these From a European point of view it was something countries appears (with only minor exceptions) as of a novelty that what turned out to be a major part of the declared gold and dollar reserves of the struggle, with important political and economic United Kingdom. repercussions, had begun so far from Europe's The raw-material-producing countries, so greatly own borders. It was against a background which, favoured by these market developments, are begindespite such reservations as had to be made, bore ning to turn increasingly to their former suppliers witness to solid progress and was full of promise in Western Europe for the purchase of consumer of further achievements that, on June 25, the news goods and machinery. Although there is a time-lag of the outbreak of the conflict in Korea ushered in before the new demand makes itself felt and trade a new chapter in the world's history. gets going (the delay being partly due to a not But even before that date a warning had more unnatural desire on the part of the dollar-earners than once been sounded: in May and again at the to add to their own monetary reserves), the inend of June 1950 the Swiss Government, in mes- creased purchasing power will, no doubt, gradusages to its own people, had recommended the ally lead to greater imports. Not only the United reconstitution of private stocks of materials and States but also a number of European countries of various durable consumer goods (especially have been buying raw materials. This developfood), certain credit facilities being extended to ment was by no means uniform; while some counthose who needed help to finance the accumulation tries started to increase their imports immediately of such goods. This initiative on the part of after the outbreak of the conflict in Korea, others Switzerland was much discussed and it certainly showed no perceptible reaction until early in 1951. influenced public opinion and the arrangements As regards the foreign resources necessary, Switmade by businessmen and private persons in zerland had ample and Belgium fairly substantial several other European countries, including Bel- reserves of gold and dollars; but some of the other gium, the Netherlands, and Western Germany. countries with rising import surpluses soon began Thus the actual outbreak of hostilities in Korea was to feel definitely uneasy about the growing volume regarded as a clear confirmation of the fears which of their foreign payments in relation to the allothe Swiss Government had entertained, and the cations of foreign aid still forthcoming and the size ground had thus been prepared for a determined of their monetary reserves. It was for several of import drive, especially in regard to raw materials them a fortunate thing that, at the very time when —a counterpart to the private and public stock- the amount of Marshall aid was decreasing, their piling in the United States. The European pur- foreign payments were facilitated by the European chases had been by no means inconsiderable, but Payments Union (the EPU) as from July 1, 1950— they were soon dwarfed by the mighty flow of a date very nearly coinciding with the outbreak of SEPTEMBER 1951 1107 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE BANK FOR INTERNATIONAL SETTLEMENTS the Korean conflict. Each of the participating been able to finance the increased imports (and the countries has obtained its individual "quota" in resulting rise in inventories) by the use of their own the Union and is able to use this quota for meeting resources—especially if in recent years they had accumulating deficits; the first tranche of 20 per retained a considerable part of their earnings to cent constitutes a credit, while for the following replenish their liquid resources; but the common tranches, each amounting to 20 per cent, an increas- practice is for business enterprises to turn to ing percentage is payable in gold (or dollars)—a banks for increased accommodation in order to total of 40 per cent having to be paid in gold by obtain the marginal funds they need in case of a country whose quota has been completely ex- sudden additional requirements. The commercial hausted. Some countries in a particularly difficult banks in a given country may be sufficiently liquid position received additional aid in the form of to meet the increased demands from their own "initial balances," of which they could avail them- accumulated cash balances (as the Swiss banks selves before having to make use of their respective have been able to do); but commercial banks quotas. (Cf. pp. 1124) suddenly called upon to expand their credits will It is a matter of particular importance that the generally have resort to the central bank—and the scope of the EPU settlements is not restricted to question of the credit expansion becomes essentially the metropolitan countries in Europe which are a matter of central bank policy. members of OEEC but extends to the monetary In the situation which then arose the monetary areas attached to some of the members, viz. the authorities in one country after the other began sterling area (including, besides the British Com- to feel that through their own action they could monwealth—with the exception of Canada—two appreciably influence the granting of credit and members of OEEC, namely Ireland and Iceland), in that way exert a general influence on the trend the French franc area (of which Algeria, Morocco, of economic affairs. The redundant supply of and other African territories have much to offer money which had prevailed in the first years after as trading countries), the Belgian franc area (in- the war had gradually given place to a more normal cluding the Belgian Congo) and the guilder area relation between liquid funds and current needs— (of which Indonesia has remained a member). and this made it easier to apply an effective credit The consequence has been that purchases from a policy. number of very important raw-material-producing The monetary authorities thus showed themcountries could be financed by settlements via the selves ready to take action on a scale that brought Union. Germany in particular has increased its a new note into the world's credit policy after debt to the Union while the United Kingdom and nearly two decades of predominantly cheap or at France have become the biggest creditors. least plentiful money. The central banks in Bel- Through the operation of the quotas and the gium, Canada, Denmark, Finland, Germany, the initial balances, the European Payments Union Netherlands, Sweden, and the United States have provided foreign means of payment to a total of raised their discount rates since the end of 1949. 794 million dollars in the nine months from July It should be remembered that in the years 1947-48 1950 to March 1951 (the figure representing the France and Italy had already had resort to inamount actually utilised). Without this aid, a creases in the discount rate as part of their pronumber of countries would probably not have been grammes of reconstruction. Thus in recent years able to procure the raw materials so important for the majority of the Western European countries the maintenance of a high level of business activity have made use of this most obvious weapon of and employment, and it is even possible that central bank policy. without the European Payments Union there would The United Kingdom has not increased its official have been a relapse into bilateralism as the best discount rate since the war; but the fact is that available means in the circumstances of overcoming long-term rates were allowed to rise in response the difficulties with which one country after the to market forces as long ago as 1947, and since that other would have been faced. time the central bank has refrained from interven- From the point of view of the individual im- tion against the main trend of the market, the yield porter, the payments question is primarily a ques- of long-term government securities rising to 4 per tion of finding the counterpart in his own currency cent in the spring of 1951. with which to pay for the foreign exchange that As regards the best methods of averting an inhe acquires from the monetary authorities. He will crease in the amount of central bank credit outalso have to finance the holding of the goods for standing, disagreement may still exist on certain a certain time, in case he does not sell them all at points; but there is almost general agreement that once. Some industrialists and traders may have in the present circumstances it is dangerous to 1108 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE BANK FOR INTERNATIONAL SETTLEMENTS support the quotations of government bonds by deficit by having recourse to monetary action of a means of newly created credit. Not only will the general characer (different forms of credit restricaddition of such credit increase pro tanto the tion) rather than to quantitative restrictions on amount of funds available in the market but, be- imports. Insofar as the methods adopted proved cause these funds are derived from the central bank, successful, the foreign trade of Germany and, at it will add to the aggregate cash reserves of the the same time, the foreign trade of its commercial credit institutions and thus most powerfully rein- partners would be established at a higher level force their liquidity and their lending capacity. than would otherwise be possible; but an obvious Given the great demand for long-term as well as condition for success was the compression of deshort-term credit, it is not surprising to find that, mand inside Germany so that enough goods were in response to the changed market conditions, long- set free to increase German exports, it being posterm interest rates have risen in practically all sible to count on a strong demand abroad for goods countries. produced in Germany. It is also being realised that in addition to the At the same time it was obvious that the system raising of interest rates there are other weapons of foreign trade and payments instituted by the that may be used; thus, quantitative restrictions OEEC* agreements and the fulfillment of other may be introduced, and these have shown them- obligations incurred by Germany could not be selves almost indispensable when the banks were maintained without some further aid. already in possession of large liquid resources. In At the request of the German Federal Governthe United States, the reserve ratios of the comment a special enquiry was carried out on German mercial banks have been raised and drastic restricsoil by two independent experts, the Managing tions have been imposed on consumer and build- Board of the European Payments Union laid proing credit; in the latter case, the aim was to cut posals before the OEEC Council and the Council down private construction by as much as 40 per decided on November 14, 1950, "in principle," to cent. In the Netherlands, a new system of regulaapprove the extension of a special credit of 120 tions has been imposed to restrict commercial bank million dollars to Germany, provided that the credit, and in several countries agreements have German Government presented an acceptable probeen reached between the monetary authorities and gramme of internal measures designed to restore the commercial banks as to the principles which equilibrium in the balance of payments. At the should guide them in granting new credits. beginning of December the German Government There are also a number of ways in which the presented its programme, which was examined by discount policy can be strengthened (the National the Managing Board, and on December 13 the Bank of Belgium, in particular, has given them a special credit was approved by the OEEC Council. trial), two examples being shortening of the terms In the new programme the principle of a restriction of bills eligible for rediscounting and refusal to in the volume of internal demand was maintained grant the rediscounting privilege to other than as the chief equilibrating force. The credit measgenuine trade bills. ures were to be reinforced by increases in taxation, Monetary authorities have thus reacted rapidly including an increase in the turnover tax, which to the credit problems raised by the conflict in would help to hold back internal consumption, and Korea, realising that an excessive internal credit certain modifications in the income and corporation expansion encourages rises in prices and leads to taxes, which would not only bring in more revenue deficits in the balance of payments and flight of but, by a curtailment of the volume of self-financing, capital—notwithstanding the most elaborate sysat the same time exert a moderating influence on tems of control. the tempo of internal investment. The most spectacular case of balance-of-pay- If the improvement in Germany's exports conments difficulties arising in the autumn of 1950—as tinues along the lines of the programme agreed a result of rapidly increasing imports—was that of upon in the autumn of 1950, it may be possible for Germany [Western part]. In the situation which normal imports to be resumed before long without had thus arisen certain internal measures were the risk of another balance-of-payments crisis for taken and, in addition, contact was sought with Germany. The advantage of the special assistance the Managing Board of the European Payments granted and of the credit restrictions and other Union in Paris, it being evident that the German measures taken in Germany would then be that quota in the Union—equal to 320 million dollars— would be exhausted before long. the country's foreign trade would have been estab- The keynote of the measures taken was essen- * Organisation for European Economic Cooperation, repretially an attempt to redress the balance-of-payments senting the Marshall Plan countries. SEPTEMBER 1951 1109 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE BANK FOR INTERNATIONAL SETTLEMENTS lished on a higher level than would otherwise have transfers to the Treasury (for government spendbeen possible. ing), this having often been the practice with The German measures have been dealt with in regard to amounts received by stabilisation funds. greater detail since they were adopted within the In almost every country a sounder course of action framework of an international arrangement, the is now to be noted in this respect. important principle being applied that the granting The reforms which have been introduced, for of fresh credits should be combined with acceptance instance, in the running of exchange funds must of a comprehensive programme designed to restore not be looked upon as an isolated modification of equilibrium in the country's economy and conse- administrative practices but are a sign of a more quently in its balance of payments. The develop- profound change of heart in matters of credit policy. ments in other countries have also been considered It is being realised that an extreme policy of cheap by OEEC and other bodies in their international money for the purpose of counteracting a tendency aspect. So far they have not given rise to any to depression is the last thing that is needed—esspecial credit arrangements but certain internal pecially now that a rearmament boom has added measures have been taken in the various countries its impetus to the postwar reconstruction boom. concerned in order to correct maladjustments— The tone of the discussion of these matters has including remedial action in some cases where a become much more serious—as well it might, rather excessive creditor position had developed. considering the increased strain placed upon the It was not only in Germany that acute strain was national economies by the rearmament effort. felt as a result of rather panicky buying by the When the dispute in Korea turned into a military public and increased stockpiling by commercial and venture and rearmament suddenly became the order industrial firms. In other countries, too, the general of the day, there was naturally a strong temptation public as well as the business world made more to repeat the methods which had been tried in the active use of their existing cash resources—one of Second World War and which had then proved the manifestations of this tendency being an increase effective in so many ways. The characteristic in the velocity of circulation. Thus in the United feature of this latest experiment in war economy States, according to the calculations of the Federal had been the increased reliance placed on direct Reserve Board, the estimated annual rate for the controls, not only over prices and the distribution turnover of bank deposits outside New York City of consumer goods but also over raw materials, rose from 20 per cent in December 1949 to 23 per investments, foreign trade, and even the actual cent in December 1950, or by 15 per cent. Referuse of manpower. Heavier taxation had been imences to changes in the velocity of circulation are posed to reduce the deficits in the budgets but also found in European reports. there was no general raising of interest rates. It is true that the public has been using part of Clearly the present juncture was again one which its cash reserves in notes for additional purchases called for more budget revenue, and there seemed —which is in itself an undesirable development; also to be a strong case for the application of certain but the fact that it has been possible for the measures of direct control. Thus, when it came notes thus used to be so largely withdrawn from to a really exceptional shortage of materials vital circulation—and thus prevented from reappearing for the rearmament effort, decisive reasons could be again and again as purchasing power—must be advanced for the acceptance of allocation schemes. chiefly the result of the more restrictive credit Now that it had become necessary to shift producpolicy which has been applied in an increasing tion—almost overnight—from peacetime to renumber of countries and especially in countries armament purposes, might not the simplest and which have had a deficit on current account of most effective way be not to rely upon the somewhat their balances of payments. When under such slow working of the price and cost system but to circumstances importers (either directly or through earmark parts of factories for the production of some commercial banking connection) acquire for- war materials? More difficult to answer are queseign exchange from the central bank, it is im- tions about the possible introduction of a general portant that the amounts thus paid in should not control over prices and wages. It is quite possible be made available again to the market through that the same answer should not be given for an extensive rediscounting of bills or other oper- every country; and, in any case, before an answer ations of the central bank. It is part of the "mech- is attempted, attention must be drawn to the anism of adjustment" that a dangerously large loss marked differences beween, on the one hand, a of reserves should be allowed to contract the in- full-scale war economy and, on the other hand, an ternal money supply, and that will happen unless essentially peacetime rearmament effort, as launched its effects are offset by fresh credits or through in the autumn of 1950. 1110 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE BANK FOR INTERNATIONAL SETTLEMENTS In the first place, there is the difference in the begins to believe that the value of money will go burden imposed on each country by the military on deteriorating, and to base his daily arrangements budget. Experience shows that a full-scale war on such a supposition. cannot be financed without some resort to inflation: Fortunately, there seems to be general agreement when more than one-third of the nation's resources as to the importance of safeguarding the purchasing has had to be devoted to the prosecution of the power of currencies. In the USSR the lowering of war, the best any country actually involved in the prices again decreed early in 1951 must be taken war has been able to do has been to cover some as a sign of the eflorts being made in that country 40 to 50 per cent of its total public expenditure by to uphold monetary confidence. In the West, the current revenue—the remainder being met by bor- rather resolute change in the general trend of credit rowing. Part of this borrowing was clearly of an policy which was inaugurated in the latter half inflationary character, since it caused a redundant of 1950 is equally a sign that more definite attensupply of money at a time when the amount of tion is being given to creating conditions progoods and services becoming available for civilian pitious for the maintenance of monetary confidence. purposes was smaller than before. It was natural Naturally each economy has to use the means of then to try, by wage and price controls, to keep action appropriate to its type, it being borne in the damage caused by the inflationary expansion mind that failure to take the proper steps in a of money and credit as small as possible, even period of great upheaval will inevitably be most though, for the time being, a state of afTairs ensued prejudicial to the strength of the countries or groups which afterwards came to be called "repressed of countries concerned. inflation." Rearmament, on the other hand, can be financed without resort to inflation. BOOM IN WORLD PRICES It is becoming more and more clear that the authorities will not try to overcome the difficulties After the Second World War there has been no of the present emergency by relying one-sidedly period of real price stability such as was attained either on direct controls or on financial restraint but for nearly 10 years, from 1921 to 1930, after the will seek to establish a judicious combination of First World War. the two methods. They are aware that the more After the First World War, primary products they can avoid an undue monetary expansion the soon became comparatively cheap, to the obvious less will be the need for such sweeping control advantage of the importing countries; since the measures as general wage and price freezes— Second World War they have been most expensive, with their undesirable consequences, to which the prices having shot up sharply every time industrial countries of Europe (less wealthy than the United production has got well under way, as in 1946-47 States) could ill afford to be exposed. It has and again in 1950-51. This difference in price already been stressed that the rate of interest is not behaviour is undoubtedly attributable in part to the the only weapon of credit policy; but it may as fact that during the First World War the principal well be pointed out that there are some special raw-material-producing areas were almost all unreasons for including it now among the measures touched by actual hostilities, while in the Second to be taken. World War the productive capacity of some of After years of rising prices and low interest these areas (in particular Southeastern Asia) was rates there are strong reasons in favour of giving very greatly impaired. Other factors are the great a fairly conspicuous outward sign that the time progress made, in recent years, in the industrialisahas come for savings to be encouraged again. tion of the world, the corresponding expansion of It is often argued that, in practice, an increase in the demand for raw materials, and the growth of interest rates is not likely to induce people to save the world population, which, with a rise of at least more. That may or may not be true, but here 10 per cent between 1939 and 1951, has outstripped it is a question of something more than merely the increase in the output of foodstuffs. Lastly, it granting higher remuneration to those who save. should be pointed out that after the First World It is a question of giving an assurance that in- War there was a spirit of expansion in almost every flationary tendencies will be withstood, i.e. of field—once the first brief depression of 1920-21 had allaying the anxieties of a number of people who been overcome; but in these six years since the are beginning to feel that their interests have been summer of 1945 far too many producers have been systematically neglected and that they have there- haunted by a fear of "overproduction" and declinfore a justified grievance in the continuously rising ing prices, and governments, both in their national policies and in their international actions, have genprices to which they have been exposed. A most erally shown signs of similar preoccupations. The dangerous point is reached when the ordinary man SEPTEMBER 1951 1111 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE BANK FOR INTERNATIONAL SETTLEMENTS consequence of this recent misjudgment of trends shortage liable to produce a rise in prices at the and requirements has been a relative inflexibility slightest provocation in the form of an intensificain the output of primary products—which has tion of demand. meant that no margin has been available when That was the situation when the world's comfresh needs have suddenly made themselves felt. It modity markets received the impact of the conflict is not being contended that no increase has been in Korea in the second half of 1950. The reaction made in production; but the push has not been as of these markets was prompt, and commodity forceful as it could have been and as it ought to have history offers no parallel in intensity to the enbeen in view of the underlying strength of demand. suing scramble for supplies. In the industrial countries which, after the First The OEEC Council resolved, on December 2, World War, were able to return to gold at the 1950, that "it is the responsibility of the Organisaold parity, the increase in the cost of living became tion to initiate measures of international cooperamore or less stabilised at about 60-70 per cent above tion in this field" [i.e. international coordination the prewar level, although wholesale prices stood of commodity prices]. Later in the same month only 40 per cent higher than before the war. It it was agreed between the British Prime Minister was not the prices of raw materials that had been and the President of the United States that cothe major element in the rising costs of finished operation must not be confined to the main powers goods but rather the increase in wages, which in but must comprise all free nations, and that a almost all countries had gone up more than prices healthy civilian economy represented a necessity in comparison with prewar conditions. for adequate defence. One of the results was the In the whole of the postwar period [since 1945] creation early in 1951 of the International Mathere has so far been only one short span—-the terials Conference, with a Central Group and several autumn of 1949 and the first quarter of 1950—in committees—one for each particular commodity or which there was at least the semblance of stability. group of commodities—on which as a rule 80 per On the American market, prices of raw materials— cent or more of the world's producers and conboth industrial materials and foodstuffs—remained sumers, as organised in the International Materials at an almost unchanged level during the half-year Conference, are represented. following September 1949, the month of devalua- As regards the taking of practical measures, howtions. Yet the predominant feeling was one of un- ever, progress has been slow and has consisted, for certainty and doubt. While fears of an industrial the most part, in certain modifications of national setback had died down, there was as yet no definite policy by individual governments which have confidence that the high rate of activity charac- arrived at a better understanding of their own teristic of 1948 would be re-established and sus- interests and have also taken account of the intained. True, a gradual but decided increase in terests of other countries. commodity production outside the United States Generally speaking, a temporary "plateau" has was expected to ensue from the wave of currency been reached by commodity prices, this developadjustments and, with the consequent return of freer ment being due to a continuance of the following competition among producers, more normal rela- six factors: (i) the expectation of a better political tions between production costs and prices were atmosphere, together with a growing insensitivealso anticipated. But a distinct note of caution ness to "bad news"; (ii) a greater resistance on the found its echo in various quarters. part of the final consumer; (iii) hopes of an im- In the international field the fears of approaching provement in supplies; (iv) belief in the likelihood surpluses resulted, in the first six months of 1950, of a scaling-down of United States stockpiling; (v) in such a spate of discussions and negotiations on general recourse to firmer measures for the balinternational commodity regulation schemes as had ancing of budgets and to the imposition of an not been seen since the most critical stages of the appropriate restraint upon credit through higher world depression in 1932. interest rates and otherwise; and (vi) the expecta- While the commodity markets and government tion of tangible results from the International agencies were apprehensive of a decline, prices in Materials Conference. fact turned stronger and stronger. It is still too early to tell to what extent these It was some time before the marked upturn of factors are firmly rooted or, in other words, prices in the United States during the second whether they are strong enough to counterbalance quarter of 1950 made itself felt on the European the effect of the progressive growth of a defence side of the Atlantic. But there can be no doubt production additional to civilian requirements. that, as far as industrial raw materials were con- Due weight should, however, be given to the cerned, the world was still faced with a fundamental possibility that, thanks in part to the return to a 1112 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE BANK FOR INTERNATIONAL SETTLEMENTS more farseeing and price-conscious policy, enough of the particularly sensitive prices of primary prodtime may now have been gained for the taking of ucts during the last few months (since February more effective measures in the official field. 1951) has raised new hopes that it might be pos- As far as international arrangements are con- sible to call a halt in—and even, to some extent, cerned, it appears that no particular action is in- reverse—upward movements of prices. Considertended in the case of rubber and tin; and it may able difficulties will have to be overcome before be that sufficient supplies will be forthcoming such a result can be achieved, but there are perhaps at prices well below the top quotations registered greater chances than previously of succeeding, if early in 1951. But for some other commodities— the appropriate measures are taken. certain nonferrous metals, sulphur, wolfram, It is in this connection that increased importance molybdenum, manganese, cobalt, and nickel— attaches to a policy of restraint in the budgetary there seems likely to be some form of international and credit field (including a cut in less essential control together with a system of allocations, and government expenditure and in the existing volexploratory work is also being carried out with re- ume of investment), since the other conditions gard to cotton (and cotton linters), wool, pulp, and conducive to more moderation in the rise in prices paper. would seem to be fulfilled in more than one coun- Little information is available about price move- try. Restraint in the issue of new means of payments in Eastern Europe. The only index pub- ment has important consequences in many direclished in recent times is an index of retail prices tions: for one thing, it makes it possible to go on in Poland; but for that country and others in the relaxing monetary and other restrictions which same part of the world inferences as to the trend affect the flow of foreign trade and thus to allow of prices may sometimes be drawn from various goods from abroad to compete more freely on the statements of an official character. The policy domestic markets. adopted in Moscow has in a large measure provided a pattern for the other countries, although A BETTER BALANCE IN WORLD TRADE the results have not always been up to the targets. Even in China great efforts have been made to There are two general impressions which emerge reduce prices or at least to prevent a rise (just as from an examination of the recent evolution of efforts have been made to improve the foreign ex- world trade and the balances of payments: change quotations for the Chinese currency). (i) The total dollar value of world trade (im- It is only with great caution that labels in use ports plus exports) as well as the particular figures in the Western economies can be applied to develop- for the trade of different areas have remained ments in countries with a collective form of econ- almost unchanged during the three years 1948 to omy, but it is at least possible to state that price 1950. policy in the USSR has been in no way inflationary. (ii) The surpluses and deficits on the current It might even be said, more precisely, that the accounts of the balances of payments have been policy actually applied has been in conformity with greatly reduced. a principle advocated in years past by not a few The closer approach to equilibrium in internaeconomists in the West, viz. that an increase in tional settlements, which the balance-of-payments output due to greater effectiveness in methods of figures indicate, represents an undeniable achieveproduction should be allowed to find its expression ment, and one that was so well on the way even in lower prices, the benefit then being felt not before the outbreak of the conflict in Korea that only by producers but also by persons with fixed in- it cannot be attributed mainly to the ensuing comes. For a result of this kind to be achieved con- changes in the currents of trade. On the contrary, siderable restraint is required, it being easier to ex- some developments caused by that conflict (rising pound the advantages of such a policy than to put raw-material prices and rearmament) may render it into practice—and it is, therefore, not surprising the return to complete equilibrium more difficult. to find that, in an interview given to a correspond- The most spectacular development in internaent of "Pravda" in February 1951, J. V. Stalin tional trade in 1950 has been the shrinkage of the stressed the great efforts necessary to pursue a export surplus of the United States as a result of policy of extensive development in the civil sector, declining exports and increasing imports. including "a systematic reduction of prices of con- On the basis of such scanty information as has sumer goods." been made available, the foreign trade of the In the Western World the problem of how to USSR and the other countries in Eastern Europe avoid further bouts of inflation is one of the burning among themselves and with the outside world may questions of the day, now that the relative stability be estimated at the equivalent of 5-6 billion dollars SEPTEMBER 1951 1113 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE BANK FOR INTERNATIONAL SETTLEMENTS each for imports and exports, the tendency being base year: 1949 for Germany and 1948 for all other towards an intensification of trade between the countries. members of the eastern bloc. If the above estimate Most countries were able to comply to the full is approximately correct, the foreign trade of the with the decisions taken in November 1949; and in countries in the eastern bloc is equal to about 10 January 1950 the Council decided to pass on to the per cent of the total turnover (imports and ex- next stage, namely a 60 per cent liberalisation. This ports) of world trade. was to become binding only after the European The increasing importance of trade between Payments Union had been set up; for it was felt that the participating countries needed an assurance countries in the Western Hemisphere which has that additional resources would be available to meet been a -characteristic of the postwar period has a any increased deficits which might arise in concounterpart in the very remarkable development of sequence of the liberalisation. With the Payments the commercial relations of the Western European Union in working order in the early autumn, the countries amongst themselves and also vis-a-vis the obligation to free at least 60 per cent of intraoverseas territories maintaining strong commercial European trade from restrictions became effective and monetary ties with the older countries in on October 4, 1950. Europe. In fact, one of the most remarkable aspects Originally, the countries had been entitled, under of the recovery facilitated by Marshall aid has been certain circumstances, to have recourse to discrimithe continuous improvement in intra-European natory measures for balance-of-payments reasons, trade (based on growing production as well as but this possibility was excluded upon the inaugusounder monetary relations) and the corresponding ration of the European Payments Union. As from decrease in imports from the United States—in- October 4, 1950 all trade measures as between the cidentally a potent argument against the contention participating countries had to be on a nondiscrimthat Marshall aid was mainly intended as a means inatory basis. The rule of nondiscrimination is apof creating outlets for American exports. plicable both to the liberalised and to the non- After the First World War one of the primary liberalised sector of their trade, but no procedure tasks of the economic organisation of the League for dealing with complaints of violation has yet of Nations was to aid in the elimination of quanbeen established as far as the nonliberalised sector titative restrictions on trade, and considerable sucis concerned. cess was achieved through a Convention for the As from February 1, 1951 it was decided to con- Abolition of Import and Export Prohibitions and solidate the 60 per cent liberalisation already Restrictions, concluded at Geneva on July 11, 1928. achieved and to move on to 75 per cent. Because of The Convention was adopted by 20 adherents, inthe difficulty of raising the minimum requirements cluding not only European countries but also the in the agricultural group, it was prescribed that in United States. It embodied an undertaking to no group should liberalisation fall short of 60 per abolish all import and export prohibitions and recent and that the total for all groups should attain at strictions, apart from certain specific exceptions. least 75 per cent. In addition, a common list of After the Second World War the attack on trade commodities was drawn up, consisting mainly of barriers was launched in conferences at first con- textiles, textile machinery, and certain agricultural nected with the setting-up of an International Trade and chemical products, which were in any case to Organisation as a specialised agency of the United be subject to a 75 per cent liberalisation. This list Nations. The original programme may have been was provisionally adopted on April 1, 1951, with largely modified, but a considerable amount of certain reserves on the part of the Irish and Turkish work has been done. As regards quantitative re- Governments, however. It is not applicable to strictions within Europe, the matter was taken in Austria, Denmark, Germany, Greece, Iceland, and hand by OEEC in Paris, a series of decisions being Norway, none of which have been able to reach the arrived at by the Council in July and August 75 per cent stage. 1949 and in the following November with a view The liberalisation effort has not been limited to to bringing about a progressive removal of such commodities: it has also been applied to invisible restrictions. transactions; but here it has proved more difficult In November 1949 the Council of OEEC decided to arrive at general principles, in view of differences that at least 50 per cent of trade on private account in practice in the member countries. Some progbetween member countries should be freed. The ress has been made in specific sectors, however. percentage was to apply to each of three groups of Thus, the invisible transactions have been divided imports, agricultural products, raw materials and into three separate categories, of which the last manufactured goods, and was to be related to a one—which includes tourist traffic—carries noth- 1114 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE BANK FOR INTERNATIONAL SETTLEMENTS ing more than an assurance from the governments of 1950 is of special importance from a trade point that they will deal with the transactions involved of view, seeing that a higher degree of restraint at "in as liberal a manner as possible." More far- home should facilitate further progress in the field reaching provisions apply to the other two cate- of liberalisation. gories. Thus, from June 1, 1950, freedom of trans- In the main, the contraction since 1947 in fer was to be authorised in respect of profits from Europe's trade with North America and the growth business activity (provided these were genuine and of intra-European trade have been healthy developdid not involve a reduction in the working capital ments, since much of the trade across the Atlantic of the businesses concerned), dividends, interest on in the immediate postwar years simply reflected securities and mortgages and, as a rule, long-term the impossibility of obtaining supplies from the norcontractual amortisation. The transfer of amounts mal sources. But it should not be forgotten that representing participation by subsidiary companies the better balance achieved is still of an artificial and branches in the overhead expenses of parent and somewhat precarious character, since special companies situated abroad, and vice versa, is also restrictions continue to be applied, particularly to provided for. dollar imports, this being one instance of the wide- The OEEC liberalisation measures apply to im- spread discrimination still in existence. These ports (i) on private accounts and (ii) from par- wider problems—not confined to the European ticipating countries only, and the result is a wide stage but interesting the United States as well— variation in the extent to which the individual have been attacked at the three customs tariff concountries' total (i.e. private and other) imports from ferences held at Geneva from April to August 1947, other participating countries are affected, and a still at Annecy from April to August 1949, and at wider variation in relation to their total imports Torquay from September 1950 to April 1951, from all countries. In no case has as much as one- within the framework of the General Agreement half of a country's total imports been subject to on Tariffs and Trade (GATT) and with the par- OEEC liberalisation—and for some countries (es- ticipation of a larger number of countries on each pecially those which practice the method of purchase successive occasion. At these conferences the negoby official agencies) not even a quarter of their total tiations were conducted by pairs of countries on a imports has been involved. It is also a fact that in bilateral basis but the results found a fairly wide 1950, when the original liberalisation was first multilateral application through the provisions of extended, a number of countries raised protectionist the General Agreement, which had been signed by duties in their tariffs, and in that way attenuated 23 countries on October 30, 1947 in Geneva. the practical influence of the liberalisation. It The countries participating in the Torquay negohappened that particular interests were demanding tiations are responsible for about 80 per cent of increased protection; but it would also seem as world imports and 85 per cent of world exports. if, in several instances, the authorities themselves In all, 58,700 tariff concessions were granted at feared that increased freedom for imports would the three conferences. These concessions covered cause serious difficulties in their balance of pay- a very substantial part of world trade and affected, ments. In a few cases these fears have been justified on an average, well over half the number of items —and then essentially because of an internal lack on the customs lists of each of the countries which of equilibrium between the volume of money and are parties to the GATT. the supply of goods; but more than one country While considerable progress had been made at soon found itself in a better position in relation to Geneva and Annecy, at a time when monetary the European Payments Union than it had dared and commercial restrictions were greater hindrances to hope. Trade has been on the increase and has to trade than the tariff barriers, the Torquay conpermitted some of the OEEC countries to strengthen ference did not reveal the same willingness to make their monetary reserves in gold and dollars as well. concessions. One reason for the greater hesitation The intimate connection between shifts in the cur- was no doubt the uncertainty of the general outlook, rency position and the freeing of trade was realised clouded by political and other fears. But a more from the beginning of the liberalisation effort, and particular reason was that, with the relaxation of it has been borne out by, for instance, the experi- exchange controls and the extension of liberalisaence of Germany, which was temporarily obliged tion, tariffs in most Western European countries to suspend liberalisation when the remaining mar- were being restored to their traditional position gin of its available foreign resources became alto- as the specific weapon of the protectionist. It might gether too narrow (see page 1109). Thus the stricter be going too far to say that a fresh wave of proteccredit policy which a number of European (and tionism is sweeping over the world; it looks more other) countries have adopted since the beginning as if in tariff matters an attitude of "wait and see" SEPTEMBER 1951 1115 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE BANK FOR INTERNATIONAL SETTLEMENTS were being adopted. It may be hoped, however, the participating countries. For one thing, the that the ground already gained is sure of being mechanism of the Union excludes private barter held, now that the GATT is playing an important deals—and has thus done away with a procedure role as an agent for the consolidation of the con- which had given rise to almost as many rates of cessions so far obtained and as a guardian of the exchange (known as "compensation rates") as the rules which have been laid down for commercial number of such transactions carried out, the difbehaviour. Complaints may be lodged against ference between these rates and the official rates infringements of the principles of the GATT: in being often considerable. this respect a useful precedent was established at An additional feature of the European Payments Torquay, when several questions which were raised Union is that certain countries, which have not (mostly with reference to discrimination) did not become members of the International Monetary fail to secure redress. Fund or, being members, have not so far established Thus through the GATT an organised effort is a parity in accordance with the Fund's Articles of being made to deal with tariff matters, and in Paris Agreement, notify rates for the "unit of account" liberalisation is being promoted. But the question which are applicable to settlements inside the is sometimes raised whether the export trade of the Union, thus giving for the various currencies exindustrialised countries (especially those in Western change rates in relation to the U.S. dollar and the Europe where it is of such vital importance to pound sterling. them) is not being endangered by the continued The substantial advance which in 1950-51 has industrialisation of overseas countries. Will not brought the world's exchange system progressively world trade necessarily be contracted as these coun- nearer to consolidation must not be regarded as tries build up their own manufactures and become merely a technical matter of exchange markets. It increasingly able to process the materials which for reflects an improvement in the balances of paythe time being they are still exporting? ments which, in its turn, is mainly due to the fact That a more intense industrialisation is in prog- that a closer approach to internal equilibrium in ress in areas which have hitherto counted as almost the field of public finance, as well as in the relaexclusively primary producers is an undoubted tions between savings and investments and between fact. But European experience tells us that highly costs and prices, has led to a more natural balance industrialised countries are the very ones between between the volume of money and the supply of which trade is likely to expand—witness the oft- goods and services in each individual market. The quoted instance of the United Kingdom and Ger- remarkable increase in production during recent many, which became each other's best customer years has, of course, contributed to the result atbefore 1914. Another example is provided by tained, but has been able to do so only in con- Switzerland: a visitor to the annual Swiss Sample junction with a return to more normal methods Fair in Basle can hardly fail to get the impression of adjustment in the financial sphere, including that every kind of industrial article, including a restraint in the granting of credit through higher wide range of machinery, is produced in that rates of interest and otherwise. rather small country; and yet the Swiss trade sta- As regards the devaluations in September 1949 tistics show that, in most years, imports of manu- it is fair to say that, in general, the countries which factured goods are as high as those of the other altered the value of their currencies took a number large groups: foodstuffs and raw materials. of internal steps to put their houses in order. Since in the summer of 1949 the American economy had CONSOLIDATION OF FOREIGN EXCHANGE RATES already resumed its upward trend, it could be expected that, for most of the countries concerned, In comparison with 1949—a year in which coun- the combination of devaluation with corrective intries responsible for two-thirds of world trade de- ternal measures would bring about a replenishment valued their currencies—1950 was a year of relative of monetary reserves and thus strengthen their stability in the field of foreign exchanges, but this exchange position as well. has not meant that it was a year of inactivity, with But so important a change as a 30 per cent relittle progress and no achievements. It can rather duction in the value of the currency cannot as a be described as a year of continued adjustment and rule be undertaken without some inconvenience, some real consolidation. and this has made itself distinctly felt in a rise in A simplification of the rate structure resulted, prices in the countries which devalued. Contrary to in practice, from the establishment in the summer what happened in the years 1931-33, world prices, of 1950 of the European Payments Union, which as expressed, for instance, in U.S. dollars, continued provides for the settlement of transactions between firm after the wave of devaluations, the upward 1116 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE BANK FOR INTERNATIONAL SETTLEMENTS movement receiving a fresh impetus from the out- about 60 per cent of the world's total gold reserves. break of the Korean conflict. Since in some cases Such restrictions as have been imposed on the expurely internal measures would be powerless to port of certain commodities for strategic and other check the rise in domestic prices in such a situation, reasons fall within the commercial field. In the the question was discussed in a number of coun- spring of 1951 more than three-quarters of United tries whether a solution might not be found in a States exports were still unaffected by measures of revaluation of the currency. There was one coun- special control. try—Canada—in which the external value of the Latin American countries, in general, greatly currency actually improved (and there it happened improved their external economic position in 1950, in connection with the establishment of a free ex- thanks to higher prices for their produce (raw change market); in other cases—the pound sterling materials and foodstuffs). In the aggregate, their in the autumn of 1950 and the Danish and Swedish official gold and dollar holdings increased by more crowns early in 1951—rumours about revaluation, than 400 million dollars in 1950, but this gain although unsubstantiated, had a considerable in- was not due to any surplus in the current balance fluence on the timing of payments by traders and of these countries with the United States, since others, leading to movements of funds which the their purchases of American goods kept up well. existing controls were, for the most part, incapable But some Latin American countries earned dollars of arresting. from trade partners outside the Western Hemi- Like all extreme price movements, the recent in- sphere and also continued to receive substantial creases in raw-material prices tend to be a source amounts from abroad in the form of capital inof considerable difficulties, especially from an ex- vestments which, during recent years, have risen to change point of view, for the importing countries; as much as 500 million dollars a year and have but they are at the same time a sign of sustained helped to pay for current imports. In the second world demand—which in itself is a factor of no half of 1950, there was also a considerable inflow mean importance. While it is rightly stressed that of short-term refugee capital. an improvement in a country's balance-of-payments An improved balance on foreign account has position is mainly a consequence of a better in- enabled these countries not only to start paying ternal equilibrium, it should not be altogether over- off arrears of commercial liabilities but also to move looked that the trend on the world markets and towards rather less complicated exchange-rate systhe international currents of trade also play a con- tems. In some cases the process of reducing the siderable role. In the first few years after the end number of rates and of narrowing the spread beof the war a number of essential commodities were tween them has entailed a devaluation, while here practically unobtainable except from the United and there it has simply been a matter of dropping States, and this was obviously one of the reasons from the schedule a rate that had fallen into disuse. for the scramble for dollars. Since then, however, A start has thus been made on the road towards production has increased conspicuously in most simplification of exchange systems, including the other parts of the world; many products which elimination of multiple rates among Latin Ameri- Europeans previously had to import can now be can currencies. It is certainly a rather long road, obtained in large quantities in their own continent but as trade restrictions come to be increasingly (some ready-made articles, for instance, from Ger- relaxed—which should help to offset inflationary many) and Europe is beginning to be able to earn tendencies—Latin America will be able to resume dollars again by triangular trade via southeastern its position as a pivot of multilateralism in trade Asia and Latin America, thanks to the progress and payments. made in those areas. It is true that certain short- The major alterations which occurred in exages have reappeared as a result of the rearmament change rates in 1950-51 by and large may be said effort but, once products are at a country's disposal, to have contributed to the emergence of a betterthere is no difficulty in selling them abroad. balanced system. But attention should not be con- In order to become reliable partners in trade and centrated too exclusively on modifications of rates. foreign exchange relations, the overseas countries In a number of countries where no formal altermust—as everybody else must—put their own ation was made, the foreign exchange position was monetary affairs in order. It is typical that, among considerably strengthened by a replenishment of the sporadic cases of exchange readjustment during reserves, which in many cases permitted a relaxthe past year, most are found to have occurred in ation of commercial and monetary restrictions. countries which are primary producers. Paucity of reserves has been the great handicap for The U.S. dollar has retained its position as a cur- most European countries in the postwar period; as rency of the first importance, being backed by has already been pointed out, the European Pay- SEPTEMBER 1951 1117 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE BANK FOR INTERNATIONAL SETTLEMENTS ments Union has provided, for some countries, be a pity if they were not utilised to the utmost. additional payment facilities, which have served The division of the Western World into the two as a partial substitute for monetary reserves—and monetary camps of dollar and nondollar countries Germany obtained, in addition, a credit of 120 mil- constitutes a very dangerous separation and the lion dollars, which enabled it, inter alia, to refrain present may be an opportune moment for profrom a devaluation certainly not called for on the ceeding step by step with the task of unification. basis of comparative costs and prices. The reappearance of the mechanism of free ex- As regards the free market for banknotes, the change markets in which flexible rates are quoted ups and downs in the international political situ- daily and, on occasion, if found desirable, are ation play an additional role. supported by the central bank of the market in After the bout of pessimism which characterised question need not mean, however, that every the last quarter of 1949 (when it was found that kind of capital export is legally permitted. Certhe devaluations had not served to bring free- tain safeguards can still be retained in this respect market quotations of the currencies in question without impeding the gradual return to more back into close proximity to the new parities) the freely functioning exchange markets for spot and improvement in the first half of 1950 is noteworthy forward transactions. indeed. But the aggravation of the conflict in There is undoubtedly a growing inclination in Korea in December 1950 and January 1951 led to most countries to get rid of the shackles of exchange a new fall almost all along the line. Equally control; but whether it will be possible, in practice, political in its origin was the recovery in the quota- to proceed along such lines will very likely depend tions from February 1951 onwards (although the upon the development of monetary reserves in the intensity of any given movement would, of course, hands of the individual central banks. At the at the same time reflect the degree of appropriate- moment there is a tendency towards a more even ness of the internal financial measures taken in the distribution of the world's gold and dollar reserves, country in question). The hopeful attitude of while sterling reserves have gained in usefulness; June 1950 has not reappeared—but the market if this process were to continue, it should be possible valuation of the notes is generally no worse and, in to look forward to a period of greater freedom in most cases, distinctly more favourable than at the foreign trade and payments, notwithstanding the beginning of that year. One has a feeling that the difficulties arising out of a sudden and considerable quotations are ready to harden as soon as the rearmament effort. political outlook becomes rather less disturbing, this underlying tendency being one among sev- GOLD AND MOVEMENTS OF MONETARY RESERVES eral indications of a real consolidation in the foreign exchange position during the year. During the first four postwar years most of the When due weight has been given to all the countries outside the United States had to draw precarious elements in the situation, the fact re- their reserves of gold and dollars down to the mains that in the majority of countries a much danger point in order to meet deficits in their better balance has been established between the balances of payments not covered by other means. supply of goods and services, on the one hand, and In 1950 this trend was impressively reversed. Gold the volume of money, on the other—which is, after and dollar holdings in a number of countries—but all, a crucial point. International trade can now not yet in all—were rebuilt to a level at which they offer alternative sources of supply which did not could once again begin to play their traditional exist a few years ago; dollars can be earned in trade role as a cushion whenever the swing of the balance not only with the United States but with a num- of payments turned adverse. ber of other countries as well, there being, in fact, Meanwhile the usefulness of reserves of other a keen demand for a great variety of goods and currencies had been enhanced by a fairly general reservices paid for in dollars. Most important of all, laxation of trade restrictions, by the fact that more there is a greater readiness to apply corrective supplies were available outside the United States and measures even when they hurt; in other words, the by the extension of the transferability of currencies "right-to-be-helped" complex is losing the hold through administrative and other measures, inwhich it has had over men's minds in more than cluding the operation of the European Payments one country during these postwar years. Union. The increased usefulness of sterling has been The situation which has arisen since the out- an outstanding factor in this blurring of the line of break of the conflict in Korea has, of course, added distinction between "hard" and "soft" currencies. to the difficulties of the individual countries; but Gold has, however, retained its place as the primary it has also opened up new possibilities, and it would asset for monetary reserves, being as much sought 1118 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE BANK FOR INTERNATIONAL SETTLEMENTS after as at any time in the past. Gold developments items together represent the gold which has "disin the first half of 1950 represented, on the whole, appeared" during the year. a continuation of tendencies which had made them- There was a conspicuous cleavage between the serves felt in the last months of the previous year two halves of the year. In the first half there was and especially after the widespread devaluations a growing confidence in most currencies: in free that occurred in September 1949. The Korean and grey markets, not only in Europe but even in conflict brought a disturbing element into the gold Asia (where hoarding, especially in China, was markets, and movements which, in several respects, on the decrease), the price of gold fell to levels not were most spectacular ensued in the second half far above the official price, and only some 8 per of 1950. cent of the current output of gold would seem Gold. The year 1949 had been the first since 1945 to have gone into hoards. In the second half of in which the American intake of gold did not the year, on the other hand, growing fears of inabsorb the whole current output, and in 1950 the flation or even invasion greatly fostered the propen- United States actually became a net seller of gold sity to hoard, and it would seem that nearly 60 to the extent of 1,743 million dollars. The whole per cent of the current output went into private hoards. Industrial uses having also taken their of the gold obtained from the United States went quota, only one-quarter of the current output was into the monetary reserves of other countries, whose left for monetary reserves in the last six months reported reserves seem also to have been increased of 1950. But it is interesting to note that the by some 420 million dollars from current producprices paid for gold, although higher in the second tion, while about 1,650 million was added to rehalf-year, remained much below the levels reached serves in the form of dollar holdings. In all, this in 1948 and 1949. makes an addition of 3,800 million dollars to official gold reserves and short-term dollar balances held Of the gold obtained from the United States monetary stock over three-fourths remained in by countries other than the United States. that country as gold under earmark at the Federal These gains were fairly widely distributed. The Reserve Banks for foreign account. In conformity fact that the sterling area and Canada accounted with the Gold Reserve Act of 1934, the United for almost two-thirds of the total does not invalidate States Treasury, acting through the Federal Rethis observation, since the accumulations of the serve Bank of New York, has been prepared to sell sterling area reserves in London do not appertain gold for "legitimate monetary purposes"—which, in exclusively to the United Kingdom—something like practice, has meant that, apart from sales to the 40 to 50 per cent being really earned by other memarts, industry, and professions, gold has been sold bers of the area. A few countries in Europe saw to central banks, Treasuries, and other monetary their net gold and dollar holdings decline in 1950, institutions. Through the fact that gold has been but to a large extent the drain could be accounted purchased whenever offered to the United States for by advance purchases of raw materials. authorities and has been made available in amounts The losses of gold by the United States and the "necessary to settle international balances," the increases in other countries' dollar holdings were dollar has more than ever occupied a pivotal posidue not to any current deficit in the balance of tion in connection with gold settlements in these payments (there being still a surplus of 2,200 postwar years. million dollars on goods and services account) but It is, of course, an understood thing that in partly to the continuance of American aid to wartime, or in an extreme emergency, controls will other countries at the rate of about 4,100 million be tightened in order to channel gold into official and, for the rest, to various financial transactions, reserves; but there is still a difference of opinion of which the most important was a net outflow of as to the best way to proceed under more ordinary private capital, estimated at nearly 1,100 million. conditions, including those prevailing in a period Of the 870 million dollars representing the total of rearmament, which may be of fairly long dura- (known) output of gold in 1950 some 420 million tion. (as mentioned above) was estimated to have gone Monetary reserves. After having been the world's into monetary reserves and about 160 million to largest individual buyer of gold between 1945 and have been absorbed by the arts, industry and pro- 1949, the United States became the largest seller fessions in the Western World, leaving some of gold in 1950. 290 million as the amount which probably went Notwithstanding the transfer of 687.5 million into private hoards in the East and the West. dollars to the International Monetary Fund, the The distinction between industrial uses and private increase in the gold stock of the United States hoarding is admittedly not very sharp. The two between the end of 1945 and the end of August SEPTEMBER 1951 1119 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE BANK FOR INTERNATIONAL SETTLEMENTS 1949 amounted to 4,688 million; but in the follow- sellers of raw materials—were Latin American ing period up to the end of March 1951 a decrease countries with a gain of 406 million dollars and of 2,850 million cut the previous gain by about Canada with a gain of 625 million. three-fifths. Even so, the United States still held Fortunately, it is being increasingly realised that 1,840 million dollars more at the end of March the establishment of gold and foreign exchange 1951 than at the end of 1945 and its holdings still reserves, sufficient to enable a country to have a amounted to nearly 60 per cent of the world's considered monetary policy without continual remonetary gold stock outside the USSR—about the sort to hand-to-mouth expedients for balance-ofsame percentage as at the end of the war (as com- payments reasons, constitutes one of the most useful pared with a maximum of 70 per cent at the end investments for most countries in the world. of 1949). From a general point of view, it is, of course, an advantage that the world's monetary MONEY, INTEREST RATES, AND CREDIT gold stock is becoming rather more evenly distributed, since one of the main purposes of gold The year 1950 was marked, in the majority of reserves is to meet deficits in the payments relations countries, by an unusually large expansion of credit, between different countries, and it is essential for which began in the spring and gathered momentum the smooth working of such a system that most rapidly after the outbreak of the conflict in Korea. countries should have some reserves of their own This rapid growth of credit was required to some to fall back upon in case of need. extent to finance an increase in production, but the There were only a few countries which in 1950 greater part was used by both business and the did not increase their combined gold and dollar private consumer for the accumulation of stocks— reserves, the chief reason being (as in Belgium) particularly stocks of imported goods—credit exthat increased stocks of raw materials took the pansion thus having a direct effect on the balance place of part of the gold and dollar holdings. The of foreign payments. With the improvement in net increase was furnished to the extent of 3,628 the public finances of most countries, the credit million dollars (i.e. almost exclusively) by the requirements of the government influenced the United States, the remainder being obtained from monetary situation to a lesser extent than in any the annual gold production. This state of affairs year since before the Second World War. The was not the result of a current surplus in the central banks of many countries have reacted balance of payments with the United States, for rapidly to the danger of inflation by raising their the goods and services account of that country discount rates and restraining credit expansion. still showed a surplus of 2.2 billion dollars, which, Review of conditions in individual countries has though much smaller than the surplus of 6.2 billion shown that in 1950-51 widespread changes were for 1949, nevertheless constituted a considerable made in credit policy; the doctrine of the efficacy active balance that had to be paid for by the outside of cheap money—an intellectual legacy from the world. great depression of the 1930's which had remained It is significant that, of the net flow of gold and in vogue during the war and in the years immedollars to other countries in 1950, 1.3 billion dollars, diately after it but which by 1947 had begun to or over one-third, left the United States during the command less widespread support—has fallen still first half of the year, i.e. before the outbreak of further out of favour. The armament outlay which the conflict in Korea. This seems to indicate that is now to be superimposed on an already brisk much of the flow reflected an improvement in the inflationary boom seems finally to have convinced economic position of other countries, together with most countries of the need for action to stop the a revival of peacetime demand for imports in the chronic inflation which has persisted for more than United States after the business recession in 1949. 10 years. Long-term interest rates have been rising, An outstanding change has occurred in relation and other measures for the purpose of restraining to overseas territories of OEEC countries. The the expansion of credit have been taken as part territories in question are mostly raw-material pro- of a general financial and economic policy. The ducers, and among them sterling area countries most obvious signs of a change of heart (or at least other than the United Kingdom play an important a change in tactics) have been the increases in disrole. The net additions in 1950 to the gold and count rates in Belgium, Canada, Denmark, Finland, dollar holdings of the sterling area amounted to Germany, the Netherlands, Sweden, and the United 1,729 million dollars, which was equal to about States—increases of as much as 2 per cent in 45 per cent of the total increase in gold and dollar Finland and Germany and of \y per cent in Den- 2 holdings of countries other than the United States; mark and the Netherlands. the other main participants in the increase—also The redundant supply of money found in most 1120 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE BANK FOR INTERNATIONAL SETTLEMENTS countries at the end of the war was clearly attribut- relation between money and national income sugable, on the one hand, to credit expansion and, on gests that in each country the public, in the aggrethe other, to direct controls which, for the time gate, wishes to hold a fairly fixed proportion of being, had prevented consumers and business enter- its income in the form of money. It would, howprises from spending as much as they wished. In ever, be going too far to say that in a free economy such a situation people were forced to "save" to the relation between money and income never an unusual extent, simply because they could not varies: there may be not only short-run but also buy the goods they wanted. But, that being so, part long-run changes. In countries where confidence of the resulting forced savings was sure to be spent in the currency is severely shaken by a major inas soon as opportunity arose. Thus a pent-up flation there may well be a permanent shift, the demand was accumulated which was bound to ratio of money to the national income settling down make itself felt once peace had returned and sup- at a lower level than previously; in France this ratio plies became more plentiful. is still well below the prewar level. On the other One indication of pent-up demand is given by hand, there may be a permanent shift upwards, as the relation of the supply of money to the national seems to have occurred in the United States in income. This relation rose very sharply in most the 1930's. It is possible that this ratio has also been countries during the war as governments financed permanently shifted upwards (though not to a themselves by printing notes, while prices were very great extent) in Switzerland—in this case, held in check by controls. Since the war the owing to external as well as internal factors. The supply of money, considered in relation to the stability of the Swiss franc has contrasted so national income, has fallen again, and in most of glaringly with the fate of the currencies of neighthose countries which have succeeded in their efforts bouring countries that large amounts of Swiss notes to regain balance in their foreign payments it is have been acquired by nonresidents, not for businow little greater (in some cases smaller) than ness purposes but as a safe investment. before the war. For the United Kingdom the data available with At the end of the war a surprisingly large num- regard to the relation between the supply of money ber of countries expected prices to fall in the near and the national income in past years are not so future and only a few—notably Belgium, Denmark, complete as for the United States, but rough estiand the Netherlands—took any steps to reduce the mates suggest that in the United Kingdom also a supply of money created by war finance. In many very stable ratio has existed. countries the supply of money was even allowed to The evidence goes to show that controls will not rise further as the demand for credit expanded. permanently prevent a rise in prices once the volume It soon became clear, however, that repressed infla- of money has been allowed to increase, and that tion (or "too much money chasing too few goods," monetary purchasing power, once created, is very as it was expressed in England) had very grave difficult to destroy. Price controls alone have been disadvantages, notably shortages, low productivity, of limited help; as a rule they have slowed down and deficits in the balance of payments, and strenu- but not stopped the rise in prices, and in "repressous efforts were made to restore equilibrium. But ing" rather than curing inflation they have removed the excess of money was, in many countries, too only a few of its evils. Under such conditions the great to be removed simply by stopping new in- "weight of money" has tended to force down interflation and increasing production, and the au- est rates to levels which are dangerously low from thorities had to allow, though with great reluctance, the point of view of getting a hold on the trend of a substantial rise in prices. When equilibrium was private investment—and this pressure on interest reached, or at least approached, it was found that rates is at work even if the central bank does not in most cases the supply of money stood once more actively support the market by purchases of sein much the same relation to the national income curities. as before the war. Even in the United Kingdom, More important are the forms of control which the Scandinavian countries, and the Netherlands, help to limit the issue of new money. A case in which have maintained their wartime controls point is a reduction of the percentage of the value longer and more completely than has been the of a house on which builders can obtain a mortgage. case elsewhere, the supply of money is much Limitation of consumer credit and direct curtailnearer its prewar relation to the national income ment of investment may both serve an important than it was in 1945, the only country in this group purpose. It may be that, when there are wage and in which it is still far above the prewar level being price controls, the government spends less and con- Norway. sequently borrows less. In no case must the effect The return in so many countries to the prewar of policy on the volume of purchasing power be SEPTEMBER 1951 1121 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE BANK FOR INTERNATIONAL SETTLEMENTS neglected, for it is an illusion to think that an examination dissipated the hesitations felt in some excess of purchasing power can be neutralised for quarters regarding the "net" system; and free more than a short while by control measures pro- "untied" ERP dollars became available to back hibiting a rise in prices. intra-European payments: all these factors contributed to the circumstances which made possible the creation of the European Payments Union. FROM THE INTRA-EUROPEAN PAYMENTS SCHEMES TO THE EUROPEAN PAYMENTS UNION European Payments Union. The Agreement for the Establishment of a European Payments Union Previous Annual Reports of this Bank have re- differs greatly from the intra-European payments viewed the working of the agreements for multi- schemes which were the forerunners. Although lateral payments and compensations concluded it did not prove possible to proceed, directly and between the countries which are the members of the without intermediate stages, to a completely free Organisation for European Economic Cooperation; and multilateral system of payments devoid of all the last of these Agreements, that for 1949-50, re- restrictions, the member countries have, at any rate, mained in force until June 1950. done their utmost to establish multilateral relations The payments schemes, in which indirect Amer- of a financial as well as of a commercial character ican aid in the form of "drawing rights" played a throughout their circle. This endeavour is closely decisive part, could, however, be no more than a related to the simultaneous effort to liberalise trade first step towards the re-establishment of a more relations to the greatest possible extent on a nonnormal financial and commercial regime in Europe. discriminatory basis. They were, indeed, only a palliative to the rigidity In general, the bilateral payments agreements of the bilateral agreements which had, nevertheless, between individual countries remain in force, the enabled the countries of Europe—stripped as the member countries are not obliged to maintain or majority of them were of their material means of to reintroduce such agreements. Likewise, the parexistence—to resume some measure of international ticipating countries can either maintain a more or trade after the war. less strict internal control of foreign exchange or, As a result of great progress achieved, more es- alternatively, relax this control to a large extent pecially since 1949, not only in the field of produc- (as a good many of them have done during the year tion but also in the struggle against inflation and 1950). in the reconstitution of monetary reserves, it became One result arising from the working of the possible, during the year 1950, to advance an im- bilateral payments agreements in the past has portant stage further within the framework of the been eliminated, namely the accumulation of in- Organisation for European Economic Cooperation. convertible balances with partner central banks. The member countries of the Organisation agreed To this end, the new balances shown by every to liberate both trade and payments simultaneously: member central bank in relation to each of the the Agreement for the Establishment of a European other central banks are offset monthly to obtain Payments Union, with retroactive effect from July 1, the net position, whether creditor or debtor, of was signed on September 19, 1950, and, 15 days each member country in relation to the Union, that later, the decision to liberalise trade amongst mem- is to say towards all other members collectively. In ber countries up to 60 per cent of imports on pri- settlement of this position, each country makes or vate account came into force. The steps taken receives payment, partly in gold (or dollars) and from July 1949 onwards to liberalise intra-European partly in the form of credit, within the limits and trade are described in the Twentieth Annual Report in the proportions agreed upon. (page 142) and the more recent measures are re- Under the European Recovery Programme the viewed earlier in this Report. United States Government has granted a 350 The disadvantages of the payments plans derived million dollar allocation to the Union to maintain largely from their having been conceived on a its liquidity (i.e. to cover the differences in the "gross" basis, which meant that they were essen- amounts received or paid in gold or dollars each tially bilateral, were based on estimates made before month) and to assure its solvency. the schemes came into operation, gave no possi- An important feature of the new system is that bility for a country by improving its position to payments in gold (or dollars) by the debtors come build up reserves and, finally, created certain wrong into the picture at an early stage—and the creditor incentives. countries, instead of getting a blocked claim on The devaluations of 1949 rid the atmosphere of a single partner, as they would previously have the thunder clouds which had hung so long over done under the bilateral agreements, receive, firstly, the European balances of payments; more profound a claim on the Union enabling them to make pay- 1122 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE BANK FOR INTERNATIONAL SETTLEMENTS merits in any of the member countries (including settlement of all transactions between the monetary their monetary areas) and, secondly, amounts in areas of member countries, according to their curgold (or dollars) enabling them to make payments rency-transfer policies, with the objectives, described in any country of the world, including those of the in the preamble to the Agreement, of: dollar area. (a) achieving the largest possible measure of At the same time the old bilateral debts out- liberalisation of trade, including the invisible items, standing in June 1950 have either been consolidated on a nondiscriminatory basis between member (and are in process of repayment through the countries; monthly settlements of the Union), or remain as (b) assisting them in their efforts to become "existing resources" which the countries owning independent of extraordinary outside assistance; them can use (and, in many cases, have already (c) encouraging them to achieve or maintain a used) to cover their net deficits towards the Union. high and stable level of trade and employment, The Agreement for the Establishment of a bearing in mind the need for their internal financial European Payments Union was signed on Septem- stability; and, finally, ber 19, 1950 by representatives of the governments (d) assisting the transition to the situation which of Austria, Belgium, Denmark, France, Germany,* will arise on the termination of the European Re- Greece, Iceland, Ireland, Italy, Luxemburg, the covery Programme, by providing them, in particu- Netherlands, Norway, Portugal, Sweden, Switzerlar, both with resources to play in part the role of land, Turkey, the United Kingdom, and the gold and foreign currency reserves and also with the British/United States Zone of the Free Territory possibility and incentive, should their position imof Trieste. prove, to strengthen their reserves in gold and The constitution of the European Payments foreign currencies. Union. The Union is operated within the frame- The preamble also stresses the point that the work of the Organisation for European Economic maintenance of internal and external financial Cooperation, under the authority of the Council, equilibrium of the member countries is an indisby the Managing Board and by the Bank for pensable condition for the proper operation of this International Settlements, the latter acting as Agent system of payments, which should "assist a return for the Organisation. to the general convertibility of currencies." The provisions of the Agreement became effec- The Council of OEEC has the power to take any tive as from July 1, 1950 (except for Switzerland, decisions which may be necessary for the execution which adhered as from November 1, 1950 without of the Agreement, subject, however, to certain retroactive effect; consequently, Switzerland may powers delegated to the Managing Board. be considered as an exception whenever reference The Bank for International Settlements, as Agent, is made to July 1, 1950 in connection with the is entrusted with the execution of the operations Union) and the Union is designed to remain in and the management of the fund in accordance with being, if necessary after the end of the European the decisions of the Council and the Managing Recovery Programme, "until it is possible to estab- Board. lish, by other means, a multilateral system of The accounts of the Union are kept, calculations European payments." The financial engagements relating to operations are made, and credits granted of the member countries are, however, undertaken by and to the Union are expressed in terms of the in the first instance for two years, i.e. up to the unit of account of 0.88867088 grammes of fine end of June 1952. gold, i.e. %5 of an ounce, so that the unit of The purpose of the Union is to facilitate, by account has a theoretical gold value equivalent to means of a multilateral system of payments, the that of the current U. S. dollar. * "Germany" in this chapter means the Western zones. The working of the Union is based on the "cumu- The Agreement for 1949-50 was signed separately by repre- lative principle," i.e. when any position is reduced, sentatives of the Commanders-in-Chief of the French Zone there is a corresponding reversal of the previous of Occupation of Germany and of the "Bizone" (British/ United States Zones), the three Western zones together being operations in the opposite order, before a new known as the "Trizone" and shown as such in the tables operation is effected. (regarding drawing rights, etc.) in the Agreement for 1949-50. The Agreement for the Establishment of a At the heart of the Union are the quotas and European Payments Union was signed by a representative the fund, and their working is simple; the comof the Federal Republic of Germany and all references in plications arise principally from other matters such this Agreement are to "Germany." For convenience of as "initial balances" and "existing resources," and presentation "Germany" is maintained throughout this chapter and always applies, of course, to the same area. these do not affect all the members. SEPTEMBER 1951 1123 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE BANK FOR INTERNATIONAL SETTLEMENTS The quotas and the fund. The quotas * are the [80 million dollars], Greece [115 million], Iceland limits for each country of its cumulative accounting [4 million], the Netherlands [30 million], and surplus or deficit in intra-European payments from Norway [50 million]. For Austria, Greece, Ice- July 1, 1950 onwards (on either side of "zero," land, and the Netherlands the whole amount is i.e. a balanced position) which can be dealt with considered as a grant; for Norway the amount is through the Union by credit and gold payments. partly a grant and partly a loan from the Union. All credit granted to the Union by the creditors "Existing resources" are the balances outstanding within the quotas bears interest at 2 per cent per on June 30, 1950 (for Switzerland, October 31) on annum; credit granted to debtors by the Union current account (plus any other balances notified bears interest on an ascending scale. by central banks) which both parties agree should [Within the quotas] the proportion of gold and not be consolidated or which, if consolidated, may credit in the settlement of surpluses and deficits be used partly or wholly as existing resources. [varies. Debtors receive and creditors grant a gold- Existing resources may be utilised in the operafree credit up to 20 per cent of their quota; beyond tions by a net debtor country, up to the limit of that, debtors must furnish increasing proportions the net deficit of the using country in the current of gold in relation to the credit received, while accounting period, except to the extent that the creditors obtain for the rest of their quota settlement country concerned had a cumulative accounting for half of their surplus in gold and extend credit surplus at the conclusion of the operations relating for the other half.] to the preceding accounting period. A fund is created for the purposes of the Agree- The utilisation of existing resources is the only ment and is entrusted to the Organisation. It is exception to the cumulative principle; such repaid or credited with: sources can be used according to the conditions set out above but they can never be reconstituted; (a) an amount of 350 million dollars obligated existing resources thus tend to disappear during by the United States Government; (b) the gold the period covered by the Agreement as they are and dollar payments from the debtors of the Union; utilised in various operations to offset net deficits. (c) the claims in respect of credit granted by the The United Kingdom has a special arrangement Union to the Debtors; and (d) the proceeds and in this matter owing to the importance to memincome from these assets. ber countries of their sterling balances. The United The fund is used: (a) to make gold and dollar Kingdom Government has announced that all payments to the creditors of the Union; (b) to sterling balances outstanding on June 30, 1950 may meet the obligations of the Union in respect of be utilised by member countries to settle their credits granted by the creditors; and (c) to cover net deficits towards the Union. In an exchange of any expenses of the Union with regard to transfers letters between the United Kingdom Minister of of gold or currency, the investment of assets, etc. State for Economic Affairs and the United States Initial balances. The Government of the United Special Representative in Europe, the ECA agreed States of America has, through the intermediary of to indemnify the United Kingdom for any loss of the ECA, allotted initial debit and credit balances gold or dollars to the extent that such loss may have in respect of a number of countries. been caused by the use of sterling balances of net Initial debit balances, allotted to Belgium [44.05 debtors in the settlement of their deficits with million dollars],* Sweden [21.2 million], and the the Union. United Kingdom [150 million] as prospective The practical wording of the Union. The new creditor countries in intra-Europcan payments, con- Agreement for the Establishment of a European stitute, in effect, grants from these countries to Payments Union was not signed until September 19, the Union in consideration of the receipt of con- 1950, so that the first operations of the Union ditional aid from the ECA for the year 1950-51; covered the accounting period from July 1 to "firm allotments of conditional aid" were made September 30, 1950; the second accounting period by the ECA in lump sums to the creditor countries was the month of October 1950 and operations have concerned on the coming into force of the Agreebeen effected monthly ever since. ment. In the practical working of the Union there are Initial credit balances were allotted to Austria two phases which may be distinguished: 1 Equivalent to approximately 15 per cent of each country's (a) the offsetting operations. The gross bilateral turnoTer of intra-European trade (both visible and invisible) surpluses and deficits of each month are fully "comin 1949 with some modifications (particularly for Belgium pensated" for each member country, leaving only and Switzerland). the net surplus or deficit for that month; further, * Editor's note.—In June 1951, the initial debit balance for Belgium was reduced to $29,375,000. this net surplus (or deficit) on the month is 1124 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE BANK FOR INTERNATIONAL SETTLEMENTS "compensated" against any net deficit (or surplus) balance of 4 million dollars in April 1951, any the country may have had in previous months (the further accounting deficit with the Union is covered, application of the "cumulative principle"). not by utilisation of Iceland's quota, which was (b) the settlement operations on the final net blocked, but by additional dollar aid to Iceland positions. from the United States Government up to a limit An audited balance sheet of the European Pay- of 3 million until June 1951. ments Union will be published after the conclusion As regards Greece, the ECA announced that it of the operations in respect of June 1951; mean- was prepared to facilitate, by certain re-allocations while, a Statement of Account is published monthly. of funds, the payments which that country has to The Managing Board has endeavoured to intro- make to the Union before June 1951 and after the duce a certain flexibility into the automatic working full utilisation of its initial credit balance. of the Union by its handling of particular cases Agreements have likewise been made with the submitted to it. All the deliberations of the Manag- countries whose credit balances are in danger of ing Board are strictly confidential, but its principal exceeding their quotas. decisions have been published, so that it is possible Any surplus of Portugal in excess of its quota to give a brief review of them. (of 70 million dollars) would be covered, up to When the Managing Board met for the first time a limit of 25 million dollars, one-half by gold payin October the problem of the balance of payments ments by the Union to Portugal, and one-half by of Germany (which had utilised 54 per cent of credit granted by Portugal to the Union. its quota in the first operations) was imminent. As regards Switzerland, some elasticity was intro- The background to the German problem is re- duced into the working of the Union by the Council viewed earlier in this Report; after investigation decision of August 18, 1950, whereby, if Switzerof the position by two independent experts and land exceeds its quota as a creditor, it will remain examination of a report from the German Federal in the Union on the basis of 50 per cent credit Government, the Managing Board recommended granted to the Union, and 50 per cent gold paythat a special credit arrangement be made for ments by the Union to cover its further net sur- Germany, and the Council of OEEC gave its pluses. approval on December 13, 1950. Thus the nature of the special arrangements has "Subject to the German Government's carrying- been adapted to the circumstances of each case. For out of the programme which it had itself proposed, instance, the German balance-of-payments crisis in the German accounting deficit with the Union in the autumn of 1950 was considered to be of a excess of the German quota (of 320 million dollars) temporary, even if acute, nature properly met by is covered up to a total of 180 million, as to one- short-term credit arrangements; on the other hand, third in gold or dollar payments and the remaining the continuous Austrian deficits were so persistent two-thirds by a special credit from the Union, bear- that credit arrangements did not appear appropriate ing interest at 2% per cent; the "plafond" of the and a grant from the Special Assistance Fund of special credit, after remaining at 120 million dollars the ECA was considered necessary. until the end of April, is reduced by 20 million a month from May until its extinction in October The European Payments Union was formed at a; 1951. This arrangement fits in automatically with critical moment in the development of the intrathe normal monthly operations of the Union to European balances of payments, which received cover the German deficits as they arise. The Ger- the full impact of the rapid rise in prices from the man Government pledged as security for the credit middle of 1950. This is reflected in the sharp the dollar funds on the "No. 2 Account" of the increase in the total of the net deficits, which Bank deutscher Laender at the Federal Reserve amounted to 1,080 million dollars in the nine Bank of New York." months of the operation of the Union to March After the full utilisation of Austria's initial credit 1951, compared with 580 million in the correspondbalance of 80 million dollars and a payment by ing period a year earlier (which included the Austria of 2.6 million in dollars in March 1951, devaluation of sterling and other currencies of it was decided with the agreement of the ECA member countries). that any further accounting deficit with the Union The European Payments Union is essentially an should be covered, up to a limit of 20 million attempt at a transitional solution of the payments dollars until June 1951, one-half from Austria's own problem upon a regional basis; the region is, indeed, resources in dollars and one-half from the Special a considerable one, having close links with the Assistance Fund. monetary areas of the member countries, the most After the full utilisation of Iceland's initial credit important being the sterling area. Further, the SEPTEMBER 1951 1125 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE BANK FOR INTERNATIONAL SETTLEMENTS system involves gold payments by debtor countries on a multilateral basis for current transactions and on a scale sufficient to subject its members to a a reasonable volume of capital transfers. Efforts severe discipline. were directed mainly towards an increase in pro- On the other hand, the European Payments duction, it being thought that, if only output rose, Union is necessarily confronted with the problems inflation would be checked, even though the new inherent in any system which is limited to a par- plant and equipment were financed by the creation ticular region (even if it embraces a wide area) of fresh money. but which cannot at any cost establish itself on a But instead of falling, prices continued to rise— footing of autarky. Each of the countries and more slowly in some countries, more rapidly in monetary areas belonging to the Union has its others, the cost of living being kept down rather own method of solving the problem of its relations by the granting of food subsidies (which were a with the rest of the world—and, in particular, with heavy burden on the budgets) than by the operation the dollar area; and it is in no way desirable that of systems of control (which under peacetime conthe countries which have maintained or re-estab- ditions could not be made very effective). The conlished the greatest freedom in their relations with tinued influence of inflationary forces, whether "rethat area should fall into line with those which pressed" or allowed to affect prices, necessarily led still find it necessary to maintain more or less severe to losses of monetary reserves for most European restrictions. countries—one financial crisis following the other, The European Payments Union is, indeed, no especially in the field of foreign exchange, until, substitute for full convertibility: it is intended as in the difficult year 1947, a real breakdown in a step taken towards convertibility, combined with international trade and payments seemed imminent. the liberalisation of trade, by the cooperative effort The ^threatened calamity, which would have had of a group of countries whose economies were serious repercussions on the domestic situation in severely disrupted by the war—this effort repre- the countries concerned, was, however, averted by senting the most efficient multilateral use of a series of fresh efforts, varying in form from coun- American aid. Convertibility of currencies on a try to country but all having as one of their prinworld-wide basis must remain the objective towards cipal aims the prevention of any further inflationary which all endeavours in this field are bent. expansion of credit. Internationally, a new venture, commanding resources far beyond the means of existing institutions, was launched under the name CONCLUSION of Marshall aid. Nationally, a new note was struck When the Second World War was over and the by several countries: in the United Kingdom a question arose what economic and financial policies real over-all surplus was established in the budget should be pursued, one of the dominant ideas, and artificial support was withdrawn from longfirmly rooted in wide and influential circles, was term interest rates on the London market, while that the world economy was heading for a serious in Italy, and afterwards in France, stabilisation was depression, which would make its appearance in attained with the help of credit restrictions. the very near future and bring back the terror of The result of these international and national unemployment. With the prolonged crisis of the efforts was great progress, not only in production 1930's still a living reality in people's minds, these and investment (of which the full fruits have yet forecasts and fears created something of a psychosis. to be seen) but also towards a better internal In order to be able to stave off a repetition of the equilibrium—inflationary pressure being increaslosses and sufferings experienced in the years before ingly brought under control. For the most part, the war, those in authority were, in most cases, however, the real mechanism of adjustment, in the bent on pursuing a cheap-money policy and financ- form of a flexible interest policy and of a genuine ing investments by much the same methods as exchange market, was still out of gear. So it had been employed during the war. Any danger happened that the facade of exchange stability of inflation could, they believed, be counteracted by could offer little resistance to even a moderate administrative control over trade and prices; this degree of strain. Never in the history of the world had proved useful during the war and it was com- have there been more frequent alterations in exmonly thought that it could be continued in time change rates than in the period of official stability of peace. In relation to other countries, emphasis after the Second World War. was laid on the attainment of exchange stability in After the devaluations in the autumn of 1949, terms of official rates (in order to avoid "chaos") however, a period of more solid progress seemed rather than on creating a true exchange market, to be bringing a real stabilisation within reach. which would have enabled currencies to be used An increase in domestic production went hand in 1126 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE BANK FOR INTERNATIONAL SETTLEMENTS hand with a reconstitution of monetary reserves taxation and curtailment of nonessentail expendiand was accompanied by a relaxation of control as ture. But, considering the heavy burdens already regards the internal relations of certain areas and a borne in more than one country, it seems impossible liberalisation of trade within their bounds. In ad- to expect that the increase in government expendidition, a number of countries on the continent of ture will everywhere be met by higher current Europe began to allow free repatriation of their revenue. Some government borrowing would seem bank notes—a development which helped to narrow to be inescapable and, this being so, it is of the the margin between official and free-market quota- greatest importance that no methods of financing tions and, in particular, to ensure a more ready flow should be used which would lead to inflation; in of foreign exchange into official channels. other words, there should be neither direct nor Many tasks still remained, however. Since re- indirect recourse to the central bank. Because of strictions imposed by other countries in relation the increased resources to be devoted to armaments, to the dollar area had been relaxed only to a small it will clearly be necessary to curtail lending for extent, foreign competition was prevented from other purposes, and one of the main ways of producing its full effect, and this meant a limitation achieving that result will obviously be the applicaof the international division of work, with a conse- tion of a restrictive credit policy. In this connecquent reduction in the general level of efficiency. tion mention may be made of the experience of As long as liberalisation was confined to a particu- several countries which, with the aid of a careful lar group of countries, it was inevitable that a num- credit policy, have been able to restore and maintain ber of difficulties would arise, particularly since the balance in their internal economies, even though countries belonging to this group had not all at- they have not managed to rid themselves completely tained the same degree of exchange stability and of the deficit in their budgets. had not all relaxed their restrictions vis-a-vis the In certain countries the conditions for the pursuit dollar area to the same extent. of a successful credit policy are today more propi- Then in the middle of 1950 the world was faced tious than they have been at any time since the war: with a fresh rearmament effort without having had (i) The excess of money which was a general time to re-establish its economy on a truly sound feature just after the war has been practically basis after the last conflict. Clearly, the goal of the eliminated in most countries; thus a condition present efforts should be to avoid another war—and without which the ordinary instruments of credit the measures in which the countries place their re- policy cannot regain their effectiveness is on the liance ought, therefore, to be such as would, to point of fulfilment. the greatest possible extent, be compatible with (ii) Quite a number of countries have succeeded continued economic progress and especially with in building up fairly substantial reserves and have exertions sustained over a prolonged period. in that way acquired greater opportunities of It would, in particular, be a fatal error to believe exerting an influence on credit conditions in their that the methods of financing and the controls markets. which had been applied during the Second World When countries with weak monetary reserves War could be usefully employed in time of peace, encounter difficulties in their balances of payments even if it were an "armed peace." It is essential they have obviously particularly strong reasons for for the purpose of maintaining the effective strength the application of a restrictive credit policy. But, of the various countries that the rearmament effort, in real life, such countries are apt to rely upon diinitiated as it has been for the sake of security, rect measures (only too often in the belief that this should steer clear of inflation, with all the perils might relieve them of the need for contracting and chaotic conditions which its recurrence would credit at home), while the countries with stronger involve. For a relapse into inflation would weaken reserves feel that they have something to lose and, the social and economic structure—and the coun- therefore, something to defend. But it is now betries with a relatively free system are even less able coming more generally recognised that, when reto afford such a loss of strength than those which serves have to be used to meet foreign payments, adhere to a collectivist type of economy. In the decisive steps must be taken to ensure that funds conditions which have arisen there is clearly a need are withdrawn from the domestic market; the proof for much "true planning," based on a careful of this change of attitude is that central banks have calculation of the resources really available and on a been increasingly prompt to take the necessary determination to face the difficulties that have to be action by raising their discount rates and limiting overcome. Confronted as they are with the in- the granting of fresh credits in other ways. It may creased cost of armament, the countries will have be recalled that in the years 1945-47 the central to inaugurate a stiffer budget policy, with heavier banks in Belgium, France, and Italy had already SEPTEMBER 1951 1127 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT OF THE BANK FOR INTERNATIONAL SETTLEMENTS raised their discount rates; they have now been of free scope for foreign competition through the followed by the monetary authorities in Canada, relaxation if not the complete weeding-out of im- Denmark, Finland, Germany, the Netherlands, port restrictions. Too long have foreign influences Sweden, and the United States, and the list could be been kept out of the home markets, and especially lengthened if account were taken also of the coun- influences from the dollar area; since manufacturers tries which (like the United Kingdom) have al- in Europe will anyhow have to compete with dollar lowed an increase in their long-term interest rates area producers in third markets, there is a strong or applied more direct methods of curtailing credit case for extending the salutary effects of this competo consumers, the building trade, etc. tition. When there is a danger of their being This is a development of great importance as crowded out, this often spurs people on to greater laying the foundation for a noninflationary fi- efforts than any other incentive. Some new capital nancing of the armament effort on lines which for the introduction of fresh methods of production represent the abandonment of obstinate adherence will no doubt be required, but a number of enterto a cheap-money policy that had been one of the prises will very likely be able to secure the necessary essential tenets in the financing of the last war. An funds by ploughing back profits and, in general, influence thus being more definitely exerted through it may be said that no better use can be made of general financial action, it becomes less necessary limited resources than to devote them, in the first to introduce a host of individual control measures, place, to an improvement in technique, whether it and this applies also to the unavoidable curtailment is a question of production or of marketing. of investments. In this connection it must be noted It is one of the merits of the more careful credit that the need for such a curtailment cannot be policy which is now being adopted in so many blamed on credit policy. The truth is, of course, centres that this policy facilitates the task of rethat investments have to be kept within limits laxing restrictions on trade and foreign payments compatible with the amount of capital available and thus enables the countries in question to take from domestic savings or foreign sources. No doubt fuller advantage of an expansion of the internait is regrettable that a deficiency of real resources tional exchange of goods and services. has made such a curtailment necessary; but past It will certainly not prove easy to remove the ininvestments will still yield results, and there are direct protection afforded by the existing exchange fortunately various means of a different character restrictions (particularly those in relation to the by which the effectiveness of production can be dollar area) now that so many vested interests are enhanced. Governments and business leaders do flourishing inside the fence of the exchange connot seem as yet to have quite got rid of their obsestrol. But the attempt must be made and must sion with the idea that a serious postwar depression succeed. The most effective use to which the reis to be expected in the not very distant future and maining foreign aid and the more plentiful reserves that it may therefore be wise not to push on too far can be put is to employ them in decisive steps with the output of agricultural and other products. towards the re-establishment of genuine exchange In addition to the change called for in this fundamarkets and towards securing a significant relaxamental attitude towards production, there is also tion of the restrictions hampering trade and payneed for the discontinuance of more specific ways ments between Europe and its overseas territories, of limiting production and trade—ways which on the one hand, and the dollar area, on the other. often involve a certain measure of price support. Progress along such lines is, indeed, an essential It is a fortunate circumstance that the taking of condition for the attainment of a lasting economic steps in relation to these matters does not as a rule cooperation in Europe; for the structure of this require any additional outlay of capital. continent is such that no form of integration will There is a further way of strengthening incentives prove sound and durable if it is in any way to higher productivity and that is by the restoration fashioned on the lines of a closed area. 1128 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT Administrative interpretations of banking laws, new regulations issued by the Board of Governors, and other similar material Defense Materials Procurement and the President, to hold the office of Defense Materials Supply Procurement Administrator in addition to his other office: Provided, That the office of Administrator Executive Order No. 10281 shall have no compensation attached to it so long The President of the United States on August 28, as it is held by any other officer of the Government. 1951, issued Executive Order No. 10281 which, # # # # # among other things, established the Defense Materials Procurement Agency and revised the authority Section 202. The Defense Materials Procurement of the Reconstruction Finance Corporation to make Agency is hereby designated as an additional guarloans to business enterprises under section 302 of anteeing agency under section 301 of the Defense the Defense Production Act of 1950, as amended. Production Act of 1950, as amended; and accord- This Order amended Executive Order No. 10161 ingly, section 301 of Executive Order No. 10161 of of September 9, 1950, so as to designate the Defense September 9, 1950, as amended, is hereby amended Materials Procurement Agency and the Atomic by inserting therein, after the words "the Depart- Energy Commission as additional guaranteeing ment of Agriculture," the words "the Defense Maagencies under section 301 of the Defense Produc- terials Procurement Agency,". tion Act. The pertinent provisions of Executive Order No. 10281 are as follows: EXECUTIVE ORDER NO. 10281 PART III. LOANS TO PRIVATE BUSINESS ENTERPRISES Section 301. Part III of Executive Order No. DEFENSE MATERIALS PROCUREMENT AND SUPPLY 10161 of September 9, 1950, as amended, is hereby By virtue of the authority vested in me by the further amended by adding after section 309 Constitution and statutes, including the Defense thereof (as added by Part II of this Executive Production Act of 1950, as amended, and Title II Order) the following new sections: of the First War Powers Act, 1941, as amended, and as President of the United States and Com- "Sec. 310. (a) The Reconstruction Finance Cormander in Chief of the armed forces of the United poration is hereby authorized and directed to make States, it is ordered as follows: loans (including participations in, or guarantees of, loans) to private business enterprises (including PART I. DEFENSE MATERIALS PROCUREMENT AGENCY research corporations not organized for profit) for Section 101. (a) There is hereby created an the expansion of capacity, the development of techagency which shall be known as the Defense Ma- nological processes, and the production of essential terials Procurement Agency. There shall be at the materials, including the exploration, development, head of the said agency a Defense Materials Pro- and mining of strategic and critical metals and curement Administrator, who shall perform his minerals, exclusive of such expansion, development duties subject to direction, control, and coordina- and production in foreign countries, as authorized tion by the Director of Defense Mobilization. by and subject to section 302 of the Defense Pro- (b) The Defense Materials Procurement Admin- duction Act of 1950, as amended, and within such istrator shall be appointed by the President by and amounts of funds as may be made available purwith the advice and consent of the Senate. There suant to the Defense Production Act of 1950, as may be appointed to the office of Defense Materials amended. Procurement Administrator any officer of the Ex- "(b) Loans under section 310(a) hereof (1) ecutive branch of the Government designated by shall be made upon such terms and conditions as SEPTEMBER 1951 1129 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT the Corporation shall determine, (2) shall be made PART IV. MISCELLANEOUS AMENDMENTS OF PRIOR only after the Corporation has determined in each ORDERS instance that financial assistance is not available on Section 401. Executive Order No. 10161 of Sepreasonable terms from private sources or from other tember 9, 1950, as amended, is hereby further governmental sources, and (3) except in the case of amended by inserting the following after section working capital loans (involving no more than 801 thereof: minor expansion of capacity which is incidental to "Sec. 802. All functions delegated or assigned by a loan for working capital) shall be made only or pursuant to this Executive Order, or by or purupon certificate of essentiality of the loan, which suant to any other Executive Order provision certificate shall be made by the Secretary of Agriamendatory or supplementary to this Executive culture with respect to food and food facilities and Order, including any such provision in an Executive by the Defense Production Administrator with re- Order herafter promulgated, shall be performed, spect to all other materials and facilities. by the respective officers and agencies concerned, "(c) Applications for loans under section 310(a) subject to the direction, control, and coordination hereof shall be received from applicants by the of the Director of Defense Mobilization." Corporation or by such agencies of the Government as the Corporation shall designate for this purpose. "Sec. 311. (a) The Export-Import Bank of Wash- Section 404. Section 301 of Executive Order No. ington is hereby authorized and directed to make 10161 of September 9, 1950, is hereby amended by loans (including participations in loans) to private inserting therein, after the words "the Department business enterprises, for the expansion of capacity, of the Air Force," the words "the Atomic Energy the development of technological processes, and the Commission,". Executive Order No. 10223 of production of essential materials, including the ex- March 10, 1951, is hereby revoked. ploration, development, and mining of strategic and critical metals and minerals, in those cases where such expansion, development or production HARRY S. TRUMAN is carried on in foreign countries, as authorized by The White House, and subject to section 302 of the Defense Produc- August 28, 1951. tion Act of 1950, as amended, and within such Legislation amounts of funds as may be made available pursuant to the Defense Production Act of 1950, as Defense Housing Act of 1951 amended. The "Defense Housing and Community Facili- "(b) Loans under section 311 (a) hereof (1) ties and Services Act of 1951," approved September shall be made upon such terms and conditions as 1, 1951 (Public Law 139—82d Congress), among the said Bank shall determine, (2) shall be made other things, afreets the residential credit restrictions only after the Bank has determined in each instance of the Defense Production Act of 1950, as amended, that financial assistance is not available on reasonby providing for (1) the suspension and relaxation able terms from private sources and that the loan of restrictions in critical defense housing areas, (2) involved cannot be made under the provisions of minimum down payments for veterans' loans on and from funds available to the Bank under the homes having a sales price of less than $12,000, and Export-Import Bank Act of 1945, as amended, and (3) maximum down payments in connection with (3) shall be made only upon certificate of essenticonventional or FHA financing of homes where ality of the loan, which certificate shall be made by the transaction price is $12,000 or less. The law also the Secretary of Agriculture with respect to food provides that the maturity of any such loans may and food facilities and by the Defense Production not be required to be less than 25 years. The pro- Administrator with respect to all other materials visions of the Act of particular significance in this and facilities. connection are as follows: u(c) Applications for loans under section 311 (a) hereof shall be received from applicants by the Sec. 102. In order to assure that private entersaid Bank or by such agencies of the Government prise shall be afforded full opportunity to provide as the Bank shall designate for this purpose." the defense housing needed wherever possible, in 1130 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT any area which the President, pursuant to the 1944, as amended, and the sales price of which authority contained in section 101 hereof, has home does not exceed $7,000; and no more than declared to be a critical defense housing area— 6 per centum down payment shall be required (a) first, the number of permanent dwell- in connection with any such loan where the sales ing units (including information as to types, price exceeds $7,000 but does not exceed $10,000; rentals, and general locations) needed for de- and no more than 8 per centum down payment fense workers and military personnel in such shall be required in connection with any such critical defense housing area shall be publicly loan where the sales price exceeds $10,000 but announced and printed in the Federal Register does not exceed $12,000." by the Housing and Home Finance Admin- (b) The Defense Production Act of 1950, as istrator; amended, is further amended by adding after (b) second, residential credit restrictions section 605 the following new section: under the Defense Production Act of 1950, as "Sec. 606. Not more than 10 per centum amended, (1) as to housing to be sold at $12,- down payment shall be required pursuant to 000 or less per unit or to be rented at $85 or section 602 or section 605 of this Act in conless per unit per month, shall be suspended nection with the loan on any home not made or with respect to the number and types of hous- guaranteed by the Veterans' Administration and ing units at the sales prices or rentals which the transaction price of which home does not the President determines to be needed in such exceed $7,000; nor more than 15 per centum in area for defense workers or military personnel, connection with any such loan on any home the and (2) as to all other housing, shall be relaxed transaction price of which exceeds $7,000 but in such manner and to such extent as the Presi- does not exceed $10,000; nor more than 20 per dent determines to be necessary and appropri- centum in connection with any such loan on any ate to obtain the production of such housing home the transaction price of which exceeds $10,needed in such area for defense workers or 000 but does not exceed $12,000. The term of military personnel; any loan referred to in the preceding sentence or in the last proviso of section 605 shall not be re- # • # # *# quired to be less than twenty-five years." Sec. 207. Section 24 of the Federal Reserve Sec. 611. Upon a finding by the Housing and Act, as amended, is hereby amended by striking Home Finance Administrator that the acquisiout of the third sentence "or section 8 of title I" tion of any real property for a defense installation and inserting in lieu thereof the words "section or industry has resulted, or will result, in the dis- 8 of title I, or title IX". placement of persons from their homes on such Sec. 503. The third paragraph of section 24 property, he may (notwithstanding any other of the Federal Reserve Act, as amended, is provision of this or any other law) issue regulaamended by adding in clause (d) the words "or tions pursuant to which such persons may be the Housing and Home Finance Administrator" permitted to occupy or purchase housing for after the words "the Reconstruction Finance Corwhich credit restrictions established pursuant to poration" and by adding the words "or of section the Defense Production Act of 1950 have been 102 or 102a of the Housing Act of 1948, as relaxed or housing which has been provided or amended," after the words "provisions of the Reassisted under the provisions of this Act (includconstruction Finance Corporation Act, as ing amendments to other Acts provided herein), amended,". subject to any conditions or requirements that Sec. 602. (a) Section 605 of the Defense Prohe determines necessary for purposes of national duction Act of 1950, as amended, is amended by defense. striking out the period in the first sentence and inserting in lieu thereof the following: ": And Real Estate Credit provided further, That no more than 4 per Amendment to Regulation X centum down payment shall be required in con- The Board of Governors of the Federal Reserve nection with the loan on any home made or System, with the concurrence of the Housing and guaranteed by the Veterans' Administration pur- Home Finance Administrator, effective September suant to the Servicemen's Readjustment Act of 1, 1951, issued Amendment No. 6 to Regulation X SEPTEMBER 1951 1131 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT relating to real estate credit. The amendment is 1. In subsection (p) of section 6, add at the end for the purpose of revising the restrictions on hous- thereof the following new sentence: ing credit affecting one- to four-family housing so No action will be taken under this subsection as to bring the regulation into conformity with with respect to any area designated as provided the provisions of the new Defense Housing and herein after September 1, 1951. Community Facilities and Services Act of 1951. 2. By adding the following subsection (q) to With respect to conventional and FHA-insured section 6: home loans, the Act provides that no more than (q) Critical Defense Housing Areas.—Whenever 10% down payment shall be required where the an area has been certified, under authority of any transaction price does not exceed $7,000; no more applicable Federal statute, to be a critical defense than 15% where the transaction price does not housing area, the terms prescribed by this reguexceed $10,000; and no more than 20% where the lation and the Supplement thereto will be sustransaction price does not exceed $12,000. pended or relaxed to the extent deemed necessary The Act also provides that credit restrictions to encourage construction of housing needed for shall not require the term or maturity of any loan defense workers and military personnel, the on housing up to $12,000 to be less than 25 years. extent of such suspension or relaxation to be Under the previous regulation, the maximum prescribed by public announcement. maturity was 20 years for housing priced at more than $7,000. 3. In the Maximum Loan Value provision of Schedule I of the Supplement delete the table and The new schedule of maximum loans and miniinsert therefor the following: mum down payments follows the requirements of the Act up to $12,000 and then, as rapidly as prac- If the "value per family The "maximum loan tical, returns to the schedule of down payments unit" is value per family unit" is required under the credit controls instituted last October. Except for fractional changes made in Not more than $7,000 90% of "value per famthe interest of simplifying calculations, the level of ily unit" the previous regulation is reached at $15,000 and More than $7,000 but 85% of "value per famfrom that point on the mortgage limits are subnot more than $10,000 ily unit" stantially the same as before. More than $10,000 but 80% of "value per fam- The new Act also provides for the suspension of not more than $12,000 ily unit" credit restrictions in critical defense housing areas More than $12,000 but $9,600 plus 40% of exfor housing programmed for defense workers and not more than $15,000 cess of "value per fammilitary personnel and selling for not more than ily unit" over $12,000 $12,000 or renting for not more than $85 a month. More than $15,000 but $10,800 plus 20% of ex- Regulation X was amended accordingly, to bring not more than $20,000 cess of "value per famthe provisions with respect to defense areas into ily unit" over $15,000 conformity with the new law. At the same time, credit terms were also suspended for defense hous- More than $20,000 but $11,800 plus 10% of exing programmed in areas previously designated as not more than $24,500 cess of "value per famcritical defense areas. ily unit" over $20,000 Regulation X was further amended to provide Over $24,500 50% of "value per famfor the exemption from the regulation of certain ily unit" essential nonresidential defense construction. 4. In the Maturity provision of Schedule I of The text of the amendment is as follows: the Supplement insert "per family unit" after the word "value" in the sixth line; delete the paren- AMENDMENT NO. 6 TO REGULATION X thetical clause "(determined as provided in section Issued by the Board of Governors of the Federal Reserve 2(7) of the regulation)" in the seventh line; delete System with the concurrence of the Housing and Home Finance Administrator "$7,000" in the seventh line and insert therefor Regulation X is hereby amended in the following "$12,000"; insert a period after "25 years" in the respects, effective September 1, 1951: eighth line and delete the remainder of that sen- 1132 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT tence, beginning with "if it is to be fully re- 1. By adding the following sentence at the end paid * * *." of section 3(g): In any case in which an excess so created, or in- 5. By adding the following subsection (m) to crease so caused, by transactions on a given day section 5: does not exceed f 100, the creditor need not obtain (m) Essential Nonresidential Defense Construc- the deposit specified therefor in the first paration If in exceptional circumstances proposed graph of section 3(£). nonresidential construction is certified by the 2. By changing section 4(/) (2) to read as head or assistant head of an appropriate agency follows: or department of the United States Government (2) make loans, and may maintain loans, to or to be essential to the national defense, application for any partner of a firm which is a member of may be made to the Federal Reserve Bank of a national securities exchange to enable such the district in which such construction is propartner to make a contribution of capital to such posed for an exemption from this regulation for firm, or may make and maintain subordinated such construction, and such Federal Reserve loans to such a member firm for capital purposes, Bank will issue a certificate of exemption thereprovided (A) the lender as well as the borrower for. Any extension of credit with respect to is a partner in such firm, or (B) the borrower is nonresidential construction specified in such a a member of such exchange, the lender is a corcertificate of exemption shall be exempt from the poration all of the common stock of which is prohibitions of subsections (a) and (b) of section owned directly or indirectly by the firm or by 4 of this regulation. general partners and employees of the firm, and, in addition to the fact that an appropriate com- Margin Requirements mittee of the exchange has approved the firm's Amendment to Regulation T affiliation with the corporation and is satisfied The Board of Governors of the Federal Reserve that the loan is not in contravention of any rule System has adopted an amendment making certain of the exchange, the loan has the approval of minor technical changes in Regulation T, which such committee, or (C) the lender as well as the relates to margin requirements of brokers, dealers borrower is a member of such exchange, the loan and members of national securities exchanges. has the approval of an appropriate committee of One change excuses brokers from obtaining mar- the exchange, and the committee, in addition to gin in margin accounts when the amount to be being satisfied that the loan is not in contravenobtained for transactions on a given day does not tion of any rule of the exchange, is satisfied that exceed $ 100. Another change somewhat broadens the loan is outside the ordinary course of the the exemption that is already contained in the lender's business, and that, if the borrower's regulation for certain capital contribution loans to firm does any dealing in securities for its own members of securities exchanges. Both of these account, the loan is not for the purpose of enabchanges became effective September 3, 1951. A ling the firm to increase the amount of such third change, which became effective September dealing; 17, 1951, clarifies and strengthens the rules regard- 3. By changing the second paragraph of section ing the withdrawal of dividends that are received 6(g) to read as follows: on securities in under-margined accounts. A creditor may permit interest, dividends or The text of the amendment is as follows: other distributions received by the creditor with respect to securities in a general account to AMENDMENT NO. 11 TO REGULATION T be withdrawn from the account only on condi- Issued by the Board of Governors of the Federal Reserve tion that the adjusted debit balance of the account System does not exceed the maximum loan value of the Regulation T is hereby amended in the following securities in the account after such withdrawal, respects, the amendments to sections 3(g) and 4(/) or on condition that (1) such withdrawal is made (2) to become effective September 3, 1951, and the within 35 days after the day on which, in accordamendment to section 6(g) to become effective Sep- ance with the creditor's usual practice, such intember 17, 1951: terest, dividends or other distributions are entered SEPTEMBER 1951 1133 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT in the account, (2) such entry in the account has the proposal in question would effect a reduction or not served in the meantime to permit in the refund of the down payment required on the inaccount any transaction which could not other- stalment add-on purchase or a total extension of wise have been effected in accordance with this credit in connection therewith in an amount greater regulation, and (3) any cash withdrawn does not than that permissible under the regulation. represent any arrearage on the security with Bona Fide Trade-Ins respect to which it was distributed, and the current market value of any securities withdrawn Since the amendment to Regulation W which does not exceed 10 per cent of the current market was made following the amendment of the Defense value of the security with respect to which they Production Act, and which became effective July were distributed. Failure by a creditor to obtain 31, 1951, questions have been received concerning in a general account any cash or securities that trade-ins in connection with the instalment sale are distributed with respect to any security in of listed articles, particularly articles listed in the account shall, except to the extent that with- Groups B, C, and D of the Supplement to the drawal would be permitted under the preceding regulation. sentence, be deemed to be a transaction in the It should be noted that the new provisions of account which occurs on the day on which the the statute and the regulation do not repeal the distribution is payable and which requires the requirement that a down payment must be obcreditor to obtain in accordance with section 3(b) tained. Two provisions of the regulation are of a deposit of cash or maximum loan value of se- special importance here. One is section 6(V)(3) curities at least as great as that of the distribution. which requires that a trade-in be described in the Registrant's records and that the Registrant set out Consumer Credit "the monetary value assigned thereto in good Court Proceedings faith". The other is section 8(/)(7) which requires that "any rebate or sales discount" be deducted in A criminal information was filed on August 8, calculating the "cash price" of the listed article, 1951, in the United States District Court in St. and that the required down payment be determined Paul, Minnesota, charging Charlotte Lange, doing on the basis of the "cash price . . . net of any rebate business as Lange Television Sales, and Walter or sales discount." Lange with violating Regulation W. The provisions of the statute and regulation, Refund of Finance Charges at Time of Add-on Sale especially those quoted above, prohibit certain An inquiry has been received concerning the practices which would attempt to use fictitious application of Regulation W to a sales promotional trade-in allowances to evade the down payment reproposal of a Registrant doing business on a nation- quirements. This is true even though the regulawide basis to refund, by cash payment or check, tion does not necessarily require that trade-in allowa portion of the finance charges originally included ances counted against down payments be limited to in an outstanding instalment sale obligation held the actual market value of the trade-in or to the by him. Such refund would be made at or about amount for which the Registrant expects to be able the time of an instalment add-on sale to the same to sell it. Some of the more important principles forbidding fictitious trade-in allowances are indicustomer. It is understood that such refund may cated below. include some of the finance charges already paid, as well as the portion thereof not yet paid at the 1. It is evident that a transaction would involve time of the add-on transaction and the resulting a rebate or sales discount rather than a trade-in consolidation of indebtedness. where the Registrant in fact did not receive delivery There would, of course, be no objection under and possession of the property for which a sothe regulation to a cancellation of the unearned called trade-in allowance was granted. In such portion of the finance charges on the outstanding a case an actual trade-in has not occurred, and obligation at the time of the consolidation of that labelling the transaction as a "trade-in" will not obligation with the new credit. However, the change its essential characteristic as a mere rebate Board is of the view that a transaction pursuant to or discount. The Registrant has received nothing 1134 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT in part payment by virtue of the so-called trade-in Reserves and has merely reduced the price of the article Cash Collateral Accounts sold. Accordingly, the required down payment would have to be obtained on the basis of the The Board of Governors has been asked to rule "cash price" of the article net of such reduction. upon the question whether so-called "cash collateral accounts" held by member banks against outstand- 2. A transaction would similarly conflict with the requirements of the regulation where there ing commercial letters of credit providing for the was applied against the required down payment a drawing of sight drafts should be considered deso-called trade-in allowance in substantial amount posits for purposes of reserve requirements under for property having a value that was nominal or section 19 of the Federal Reserve Act. The Board negligible, or that bore no reasonable relationship is authorized to define demand and time deposits to the so-called allowance. Among transactions for the purposes of this section. that would thus conflict would be many made on In a typical case, it is understood that, in conthe basis of a substantial uniform allowance for nection with the issuance of a commercial letter all so-called trade-ins irrespective of their make, of credit by a member bank and its customer's obmodel, or condition. ligation to place the bank in funds to meet drafts 3. A trade-in could not be counted as a down drawn under the letter, a separate account in the payment to the extent that there had been any off- name of the customer, known as a "cash collateral setting increase in the price of the article being account," is set up on the books of the member sold. The price to be used as a standard here bank, either through transfer of funds from anwould be the actual value at which the Registrant other account or a deposit of cash, in an amount at the time is selling the same or like articles with equal to all or some portion of the maximum auan all-cash down payment or on a comparable thorized amount of the letter of credit; that, as basis; that price might, of course, be lower than drafts are drawn under the letter of credit and the "list" price. presented to the bank for payment, the amounts of 4. From the foregoing it may be noted that a such drafts are charged to such account; and that, trade-in allowance cannot be counted against the after termination of the letter of credit, any balance down payment required under the regulation ex- remaining in the account is paid or credited to the cept to the extent that it reflects a bona fide trade- customer. in or exchange of property. The regulation does After careful consideration of all aspects of this not prevent a Registrant from giving rebates or matter, it is the Board's view that, for purposes of discounts, or from calling them anything he may reserve requirements under section 19 of the Fedlike; but no matter what he may choose to call eral Reserve Act, such a cash collateral account them for his own purposes, they obviously cannot should be considered a deposit against which a take the place of the down payment required by member bank is required to maintain reserves. the regulation and cannot excuse the Registrant Since 1922, the Board has applied the general from the requirement that he actually obtain the principle that "all funds received by a bank in the required down payment. In other words, a Registrant is entirely free to give any trade-in allowances, course of its commercial or fiduciary business must rebates, or discounts that he desires; but such allow- be treated either as deposits against which reserves ances, rebates, or discounts cannot be used as a must be carried, or as trust funds subject to the cloak to conceal evasions of the down payment re- ordinary restrictions and safeguards imposed upon quirements of the regulation contrary to the prin- the custody and use of trust funds." (1922 BULciples here set out. LETIN 572) This general principle, of course, was 5. Under section $(a) of the regulation the not intended, nor has it been construed, to mean Registrant is required in any given case to keep that funds received by a bank in payment of a such records as are relevant to establishing that liability to the bank are to be treated as deposits. his treatment of an allowance as a trade-in or ex- In the present case, funds held in the cash collateral change in payment or part payment of the required accounts in question are not segregated but are down payment is in conformity with the foregoing mingled with the bank's other cash assets and used and with the requirements of the regulation. in the course of its business. It has been contended, SEPTEMBER 1951 1135 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT however, that such funds should not be treated as of credit. It is true, of course, that the maximum deposits for reserve purposes because they constitute potential amount of the drafts which may be drawn a prepayment of the customer's liability to place the under the letter is known; but the amount, if any, bank in funds with which to pay drafts subse- of drafts that will be drawn and presented to the quently drawn and presented for payment under bank under the letter cannot be determined. In the letter of credit. such circumstances, funds in the cash collateral ac- Funds received by a bank in payment or pre- count cannot properly be considered a prepayment payment of a customer's liability do not, of course, of the customer's liability. give rise to a deposit where the customer's liability Until such time as the customer's cash collateral to the bank is in fact simultaneously reduced at the account has been completely used in reimbursing time of the receipt of such funds. For example, no the bank for drafts paid by it, the bank remains deposit arises when funds are received by a bank liable to return the unused cash collateral to the from its customer and are used at the time of re- customer in the event that the unused portion of ceipt to reduce the customer's obligation on an in- the letter of credit is canceled. In other words, the stalment loan or to reduce the customer's obliga- bank becomes and remains liable to return to the tion to place the bank in funds with which to meet customer the whole or part of the cash collateral executed and outstanding acceptances at their ma- deposited by him and mingled by the bank with its turity. other cash assets. This is also true, of course, of In such cases, however, the amount of the cus- cash received from customers for letters of credit tomer's liability is definitely known. This is not sold for cash, which are specifically included in the the case where a cash collateral account is set up definition of demand deposits set forth in Regulato meet drafts drawn under an outstanding letter tion D. UNITED STATES GOVERNMENT ORGANIZATION MANUAL Following is an announcement regarding the of quasi-official agencies and selected international United States Government Organization Manual organizations, (2) charts of the more complex which is printed in the BULLETIN by request: agencies, and (3) appendixes relating to abolished or transferred agencies, to governmental publica- The United States Government Organization tions, and to certain auxiliary material. Manual, an official handbook published by the Fed- The 1951-52 Edition of the United States Goveral Register Division, contains sections descriptive ernment Organization Manual is now on sale at of the agencies in the legislative, judicial, and ex- one dollar per copy by the Superintendent of Docuecutive branches. Supplemental information fol- ments, Government Printing Office, Washinglowing these sections includes (1) brief descriptions ton 25, D. C. 1136 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NATIONAL SUMMARY OF BUSINESS CONDITIONS [Compiled August 24 and released for publication August 27] Industrial output in July and August was some- to earlier peak levels. Production of lumber was rewhat below earlier peak rates, reflecting in part the duced. Among the nondurable goods pronounced reduced rate of consumer buying earlier this year decreases occurred in the output of textile and and consequent accumulation of business inven- leather products while chemicals production contories. After the early part of July, consumer buying tinued to rise slightly. apparently increased more than seasonally. Defense Mining output decreased from the high June expenditures continued to expand rapidly. Prices of level largely as a result of the coal miners' vacation raw materials generally changed little after mid- in early July. Crude petroleum production con- July, following substantial declines from earlier tinued in excess of 6 million barrels daily, as compeak levels. Business loans at banks showed some pared with about 5!/2 million a year ago. expansion. CONSTRUCTION INDUSTRIAL PRODUCTION Value of construction contract awards, according to the F. W. Dodge Corporation, showed little The Board's index of industrial production dechange in July as decreases in most types of priclined in July to 213 per cent of the 1935-39 avervately financed awards were offset by increases in age, as compared with a half-year plateau of around public awards. Value of work put in place, allowing 222 and a year-ago level of 196 per cent. The decline for seasonal influences, continued to decline from from June was mainly due to plant-wide employee the peak reached earlier this year, reflecting chiefly vacations in a number of industries, but there were further declines in private residential building. also more than seasonal reductions in output of Business construction activity continued to rise from automobiles, textiles, and certain other goods. Prealready advanced levels. liminary indications are that output in August will be above July but still somewhat below the first half EMPLOYMENT level Employment in nonagricultural establishments Passenger car assemblies in July were curtailed in July, after adjustment for seasonal influences, by about one-fifth from the June rate, reflecting was maintained at about record June levels. The mainly the cuts ordered by the National Production average work-week in manufacturing industries Authority for the third quarter. Production declines declined somewhat; hourly earnings continued at a were less marked for furniture and other household peak level of $1.60 per hour. There were about 1.9 durable goods. Output of producers equipment and million persons unemployed in July, the lowest of primary metals was generally maintained close number for this month since 1945. INDUSTRIAL PRODWCTtON DEPARTMENT STORE SALES AND STOCKS PER CENT PHYSICAL VOLUME, SEASONALLY ADJUSTED, 1935 - 39 » 100 PER CENT POLLAR VOLUME, SEASONALLY ADJUSTED. 1936-39- 100 PER CENT 400 240 1 V 220 4 / 220 S/SLES 200 / \ L 200 A k / I 180 130 rvi \ f STOCKS 160 I.-60 i i 140 120 100 1942 1943 1944 1945 1946 1947 194B 1949 t980 1951 1942 V943 1944 1945 1646 1-947 1948 1*949 1950 1951 Federal Reserve iadex. Monthly figures, latest shown are Federal Reserve indexes. Monthly figures, latest shown are for July. for July. 1137 SEPTEMBER 1951 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NATIONAL SUMMARY OF BUSINESS CONDITIONS AGRICULTURE furnishings, and some other goods have declined Crop prospects decreased slightly during July somewhat further, while food prices have been with overall prospects at the beginning of August maintained at the high level reached in February indicated to be 6 per cent larger than last year and and rents have increased somewhat further. 3 per cent below the 1948 record. The cotton har- BANK CREDIT AND THE MONEY SUPPLY vest was forecast at 17.3 million bales as compared The total volume of bank credit outstanding has with the small crop of 10 million bales last year. changed only slightly in recent weeks. Business Beef slaughter has increased from the reduced level loans at banks in leading cities, however, increased of June and early July. seasonally during late July and early August. Loans DISTRIBUTION to finance direct defense contracts and defense sup- Seasonally adjusted sales at department stores in porting activities, principally loans to metal manu- July and the first three weeks of August were facturers and public utilities, expanded further. moderately above the level of the preceding three Loans to commodity dealers and food manufacmonths, reflecting increases in the volume of apturers also began to increase after a steady decline parel and household durable goods stimulated during the spring and early summer months. partly by extensive promotions. Consumer buying of Holdings of Government securities by commernew passenger cars also expanded moderately after cial banks and the Federal Reserve Banks have declining in the early part of July. Value of stocks shown little change since June. Increased weekly at department stores changed little during July, offerings of bills by the Treasury during July and according to preliminary data, following some rethe first half of August were largely absorbed outduction in May and June. Stocks of household durside the banking system. able goods continued at high levels. Deposits and currency held by businesses and in- COMMODITY PRICES dividuals increased somewhat in July, while Fed- The general level of wholesale commodity prices eral Government balances declined. In the first half has continued to decline since mid-July, but at a of August deposits at banks in leading cities deslower rate than in the preceding month. Prices of clined. most basic commodities have shown little further SECURITY MARKETS decrease. Reductions in wholesale prices of con- Prices of common stocks in the first week of sumer goods have become more numerous. Some August reached the highest levels since May 1930 automobile manufacturers, however, have requested and declined slightly thereafter. Prices of long-term higher Federal ceiling prices. Price increases for United States Government securities and highmachine tools will be permitted under recent Fedgrade corporate bonds have risen somewhat since eral action. the end of June. Yields on Treasury bills advanced The consumers price index advanced slightly in somewhat in July and August, while other short- July. Since then retail prices of apparel, houseterm rates declined. CONSUMERS* PRICES - 39 • 100 LOANS AND INVESTMENTS AT MEMBER BANKS IN LEADING CITIES OTHER THAN U. S. GOVERNMENT SECURITIES BILLIONS OF DOLLARS BILLIONS OF DOLLARS 220 . /"X FOOD r" 200 r^ 180 t APPARE L V-^ 1 , f 160 1/ ALL'ITEMS J . y' L>j * MISCELLANEOUS 140 —• " 120 RENT 100 1942 1943 1944 1945 1946 1947 1948 1949 1950 1951 Bureau of Labor Statistics' indexes. "All items" includes 1948 1949 1950 1951 1948 1949 1950 1951 fuel and housefurnishings groups not shown separately. Midmonth figures, latest shown are for July. Wednesday figures, latest shown are for August 29. 1138 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 1141-1142 Federal Reserve Bank rates, reserve requirements; margin requirements; fees and rates under Regulation V. . 1142-1143 Federal Reserve Bank statistics 1144-1148 Guaranteed Regulation V loans 1148 Deposits and reserves of member banks. . 1149 Money in circulation... 1150-1151 Bank debits and deposit turnover; Postal Savings System 1151 Consolidated statement of the monetary system, deposits and currency 1152 All banks in the United States, by classes 1153-1155 All insured commercial banks in the United States, by classes. . 1156-1157 Weekly reporting member banks 1158-1161 Number of banking offices on Federal Reserve par list and not on par list 1162 Commercial paper, bankers' acceptances, and brokers' balances. . 1163 Money rates; bank rates on business loans; bond yields. . 1164 Security prices and new issues 1165-1166 Corporate sales, profits, and dividends. . 1166-1168 Treasury finance 1169-1171 Government corporations and credit agencies. . 1172 Business indexes 1173-1182 Department store statistics. . 1183-1186 Consumers' prices 1186 Wholesale prices 1187 Gross national product, national income, and personal income. . 1188-1189 Consumer credit statistics 1190-1192 Current statistics for Federal Reserve chart book. . 1193-1197 August crop report, by Federal Reserve districts. 1198 Changes in number of banking offices in the United States. 1199 Tablet 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 arc derived from regular reports made to the Board; index numbers of production arc 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. SEPTEMBER 1951 1139 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MEMBER BANK RESERVES, RESERVE BANK CREDIT, AND RELATED ITEMS BILLIONS OF DOLLARS WEDNESDAY FIGURES BILLIONS OF DOLLARS _ _ _ _ __ = MONEY IN CIRCULATION RESERVE BANK I CREDIT MEMBER BANK RESERVE BALANCES TREASURY CASH AND DEPOSITS NONMEMBER DEPOSITS 1942 1943 1944 1945 1946 1947 1948 1949 1950 1951 TOTAL RESERVE BANK HOLDINGS OF U. S. GOVERNMENT SECURITIES 15 10 10 1942 1943 1944 1945 1946 1947 1948 1949 1950 (95 6 Wednesday figures latest shown are for August 29. See page 1141. 1140 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 a D a a n u n d is c n d - - e ts s T U ot . a l S. s e B G cu o o r n v i d t e i s r e n s c m c B e a e r i t t l n e i l f t s s i , , - ot A h l e l r1 Total s G to o c ld k T s r o t c e u r i a u u n e n r n a r y t c g - d - s y - - M in c t o u io c l n a n i 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 e s w r R r e d y a e i r e n e t v a d - r h k s e a e s - - l b p m N e o r e o s m d n it e - s - - c O s F e o 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: 1950—July 5. 8318,586 5,555 13,031 281 18,950 24,231 4,607 27,315 ,302 645 1,470 80216,254 15,463 791 July 12. 6518,294 5,411 12,883 399 18,757 24,207 4,606 27,169 ,309 383 1,457 80416,448 15,544 904 July 19. 19917,869 5,286 12,583 407 18,47524,207 4,606 27,029 ,310 525 1,462 80416,157 15,527 630 July 26. 35017,964 4,997 12,967 18,63624,157 4,605 26.915 .315 504 1,439 80916,415 15,585 830 Aug. 2. 30118,143 4,860 13,283 318 18,762 24,136 4,609 27,000 ,304 564 1,487 75716,395 15,553 842 Aug. 9. 26318,349 4,791 13,558 292 18,904 24,035 4,608 27,015 ,309 667 1,431 75916,366 15,535 831 Aug. 16. 10618,334 4,691 13,643 449 18,88923,954 4,608 26,976 ,309 717 1,392 75916,298 15,613 685 Aug. 23. 11518,577 5,440 13,137 191 18,88323,803 4,609 26,963 ,308 562 1,272 74816,442 15,686 756 Aug. 30. 10718,584 6,551 12,033 288 18,979 23,752 4,611 27,042 ,308 676 1,304 72816,285 15,767 518 Sept. 6. 9918,942 7,284 11,658 396 19,438 23,577 ,613 27,259 ,311 511 1,220 71616,611 15,747 864 Sept. 13. 7119,064 8,233 10,831 529 19,665 23,576 ,613 27,151 ,305 648 1,182 70316,865 15,934 931 Sept. 20. 5118,526 3,731 14,795 591 19,169 23,525 ,613 27,081 ,301 654 1,204 76816,299 15,946 353 Sept. 27. 12019,353 3,773 15,580 601 20,075 23.474 ,614 27,060 ,307 1,144 1,190 76216,699 15,837 862 Oct. 4. 4519,375 3,824 15,551 552 19,972 23,482 ,617 27,188 ,308 848 1,288 81316,626 15,848 778 Oct. 11. 6819,507 3,923 15,584 470 23,432 ,618 27,339 ,316 508 1,332 81016,789 15,829 960 Oct. 18. 3919,506 3,979 15,527 88120,426 23,291 ,617 27,228 ,313 449 1,292 80717,245 15,995 1,250 Oct. 25. 5019,229 4,058 15,171 473 19,75323,290 ,618 27,121 ,300 420 1,367 80516,649 15,962 687 Nov. 1. 11119,291 4,198 15,093 458 19,860 23,249 ,622 27,219 ,304 452 1,335 74816,674 15,947 727 Nov. 8. 29119,311 4,271 15,040 251 23,198 ,622 27,388 ,292 298 1,324 74816,625 15,906 719 Nov. 15. 7119,425 4,281 15,144 675 23,148 ,621 27,296 ,304 341 1,199 74517,054 16,044 1,010 Nov. 22. 24719,296 4,268 15,028 619 20,162 23,097 ,622 27,450 ,281 541 1,242 74516,622 16,084 538 Nov. 29. 24019,569 4,346 15,223 692 20,50123,037 ,626 27,543 ,298 564 1,218 74216,799 16,120 679 Dec. 6. 110 20,239 4,571 15,668 57320,922 22,976 4,628 27,698 .294 540 1,220 72517,049 16,100 949 Dec. 13. 69 20,529 4,820 15,709 74621,,344 22,926 4,628 27,759 ,294 451 1,213 71617,465 16,365 1,100 Dec. 20. 5420,227 4,533 15,6941,58321,86422,796 4,630 27,929 ,291 685 1,208 76017,416 16,550 866 Dec. 27. 30120,337 4,589 15,7481,08121,720 22,795 4,631 27.916 ,295 786 1,215 76017.174 16,415 759 1951—Jan. 3. 2820,571 4,624 15,9471,28121,879 22,706 4,634 27,685 ,299 546 1,250 74717,691 16,500 1,191 Tan. 10. 7320,461 4,674 15,787 70021, ,546 4,635 27,415 ,308 273 1,173 74517,502 16,391 1,111 Jan. 17. 10120,798 4,747 16,0511,02421,923 22,494 4,635 27,200 ,303 105 1,113 74318,587 17,618 969 Jan. 24. 27320,545 4,747 15,798 79021,608 22,443 4,635 27,028 ,303 256 1,095 74318,260 17,610 650 Jan. 31. 79821,484 4,965 16,519 769 23,05122,392 4,638 27,048 ,297 807 1,206 73718,984 18,047 937 Feb. 7. 64321,641 5,080 16,561 97623,260 22,341 4,638 27,125 ,307 795 1,200 73619,075 18,249 826 Feb. 14. 294 21,808 5,202 16,6061,22923,330 22,260 4,637 27,159 ,292 864 1,226 73418,952 18,211 741 Feb. 21. 196 21,854 5,320 16,5341,23323,283 22,207 4,637 27,164 ,277 796 1,223 73318,934 18,357 577 Feb. 28. 39721,881 5,393 16,488 909 23,188 22,086 4,640 27,188 ,293 465 1,172 72919,066 18.366 700 Mar. 7. 20722,179 5,592 16,587 84023,226 21,951 4,639 27,219 ,308 495 1,065 72419,004 18,288 716 Mar. 14. 13222,426 5,859 16,5671,09323,65221,900 4,639 27,167 ,283 420 1,102 72119,498 18,456 1,042 Mar. 21. 15122,348 5,891 16,4571,10923,60721,856 4,638 27,121 ,295 608 1,042 73419,301 18,724 577 Mar. 28. 47122,606 6,032 16,574 77523,85221,855 4,637 27,038 ,299 1,052 1,197 73619,023 18,535 488 Apr. 4. 126 22,914 6,288 16,626 77323,813 21,806 4,640 27,138 ,304 711 1,213 75319,141 18,495 646 Apr. 11. 9223,086 6,498 16,588 71723,895 21,806 4,640 27,166 ,287 411 1,190 75319,533 18,546 987 Apr. 18. 114 23,086 6,544 16,5421,03424,234 21,807 4,640 27,157 ,293 621 1,184 75219,674 18,558 1,116 Apr. 25. 149 22,940 6,570 16,370 70023,789 21,807 4,641 27,122 ,296 678 1,212 75319,176 18,482 694 May 2. 26422,716 6,570 16,146 74423,724 21,755 4,643 27,255 ,294 707 69718,942 18,486 456 May 9. 42222,544 6,618 15,926 74023,706 21,755 4,643 27,315 ,298 767 69618,833 18,270 563 May 16. 22,397 6,644 15,753 974 21,755 4,643 27,287 ,297 745 69519,072 18,306 766 May 23. 226 22,413 6,713 15,700 772 21,755 4,642 27,251 ,290 765 69618,606 18,315 291 May 30. 540 22,293 6,719 15,574 56423,396 21,755 4,642 27,461 ,294 620 1,217 69318,508 18,202 306 June 6. 128 22,653 6,869 15,784 76523,546 21,756 4,644 27,520 ,303 139 1,102 68419,198 18,335 863 June 13. 17922,758 6,936 15,822 84623,78321,756 4,647 27,499 ,289 129 1,095 68619,487 18,417 1,070 Tune 20. 16522,806 6,736 16,0701,17824, ,755 4,648 27,479 ,285 433 1,099 77419,482 18,642 840 June 27. 220 22,843 6,809 16,034 85223,916 21,755 4,650 27,601 ,286 418 1,139 77519,102 18,564 538 July 3. 18122,977 6,822 16,155 81223,970 21,756 4,654 27,948 ,287 179 76419,189 18,556 633 July 11. 23623,092 5,822 17,270 93824,26721,757 4,656 27,893 ,296 253 76819,364 18,459 905 July 18. 300 23,081 5,822 17,2591,22324,60521,758 4,656 27,781 ,296 612 76619,380 18,465 915 July 25. 78 23,057 5,822 17,235 92824,06321,759 4,658 27,706 ,305 424 76719,088 18,440 648 Aug. 1. 40823,081 17,259 79424,28221,759 4,663 27,842 ,308 557 1,175 72219,099 18,430 669 Aug. 8. 200 23,118 17,296 72724,046 21,759 4,665 27,904 ,298 203 1,016 72019,328 18,441 887 Aug. 15. 24223,151 17,329 96724,360 21,800 4,666 27,925 ,288 495 1,113 71919,285 18,468 817 Aug. 22. 21423,084 17,262 87724,175 21,800 4,667 27,932 1,292 434 1,096 71819,172P18.465 *>7O7 Aug. 29. 23,066 5,822 17,244 65724,001 21,800 4,668 28,034 1,291 557 999 71718,871 P18,476 P395 v Preliminary. i Includes industrial loans and acceptances purchased shown separately in subsequent tables. * 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. SEPTEMBER 1951 1141 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MEMBER BANK RESERVES, RESERVE BANK CREDIT, AND RELATED ITEMS—Continued [In millions of dollars] Reserve Bank credit outstanding Member bank reserve balances Treas- Date or period co D u is n - ts U. S. s e G cu o r v it e i r e n s ment s G to o c ld k T re c u r u n e ry r c a - y s- M in cu o l c n a i e r - y - T c u r a e r s a y h s- F u p e w r o d y i s e t i d r h t a e s l - b m N er e o m d n e - - - O F e R t e r h e a d - e l - r a a n d d - c B er il t l i s fi , - ot A h l e l r1 Total s o ta u n t- d- tion h i o ng ld s - se R r e v - e posits se a r c v - e Total qu R ir e e - d2 c E e x ss - 2 vances Total Bonds cates, ing Banks counts 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 2,409 634 653 251 11,653 6,4445,209 1941—Dec. 31.. 3 2,254 1,467 787 104 2,361 22.737 3,247 11,160 2,215 867 1,360 291 12,450 9.36S3,085 1945—Dec. 31.. 249 24,262 947 23,315 580 25,091 20,065 4,339 28,515 2,287 977 1,308 495 15,915 14,457 1,458 1946—Dec. 31.. 16323.350 753 22.597 581 24,093 20,529 4.562 28.952 2,272 393 822 607 16,139 15.577 562 1947—Dec. 31.. 85 22,559 2,853 19,706 536 23,181 22,754 4,562 28,868 [,336 870 961 563 17,899 16,400 1,499 1948—June 30.. 265 21,366 6,206 15,160 268 21,900 23,532 4,565 27,903 1,327 1,928 859 592 17,389 16,647 742 Dec. 31.. 223 23,333 10,977 12,356 542 24,097 24,244 4,589 28,224 1,325 1,123 1,189 590 20,479 19,277 1,202 1949—June 30.. 103 19,343 7,780 11,563 250 19,696 24,466 4,597 27,493 1,307 438 941 713 17,867 16,919 948 Dec. 31.. 78 18,885 7,218 11,667 536 19,499 24,427 4,598 27,600 ,312 821 1,517 706 16,568 15,550 1,018 1950—June 30.. 43 18,331 5 ,61812,713 329 18,703 24,231 4,607 27,156 1,298 950 1,431 771 15,934 15,498 436 1950—Aug. 83 18,356 6,768 11,588 381 18,820 23,627 4,613 27,120 L.304 733 1,190 724 15,989 15,770 219 Sept 72 19,572 3,793 15,779 695 20,340 23,483 4,618 27,161 1,322 1,114 1,374 759 16,709 15,821 888 Oct. 116 19,252 4,180 15,072 431 19,798 23,249 4,623 27,228 1,295 569 1,315 749 16,514 15,925 589 Nov 162 19,693 4,364 15,329 783 20,638 23,037 4,627 27,595 1,287 714 1,206 738 16,763 16,118 645 Dec 67 20,778 4,620 16,158 1,371 22,216 22,706 4,636 27,741 ,293 668 1,460 714 17,681 16,509 1,172 1951—jan. 798 21,484 4,965 16,519 769 23,051 22,392 4,638 27,048 1,297 807 1,206 737 18,984 18,047 937 Feb 397 21,881 5,393 16,488 909 23,188 22,086 4,640 27,188 L.293 465 1,172 729 19,066 18,366 700 Mar 275 22,910 6,187 16,723 964 24,150 21,806 4,640 27,119 L.293 1,114 1,322 734 19,014 18,367 647 Apr. 283 22,742 6,570 16,172 535 23,560 21,805 4,643 27,278 L.284 611 1,236 698 18,901 18,449 452 May 529 22,509 6,803 15,706 443 23,481 21,755 4,646 27,519 L,293 666 1,179 690 18,536 18,206 330 June 53 22,982 6,822 16,160 1,007 24,043 21,756 4,655 27,809 1,281 317 1,262 765 19,020 18,604 416 July 277 23,078 5,822 17,256 679 24,033 21,759 4,666 27,851 ,302 584 1,159 700 18,863 18,396 ^467 Aug... . 552 23,127 5,822 17,305 630 24,309 P21,854 P4,672 P28.151 VL ,289 459 1,038 716 19,181 PI8,448 P733 Averages of daily figures: 1950— J j uulnye t 1 8 4 4 0 1 18 7 , , 1 8 2 0 9 0 5 5, , 2 6 9 8 7 3 1 12 2 , , 8 1 3 1 2 7 4 4 4 3 0 4 1 1 8 8 , , 3 7 2 0 5 3 2 24 4 , , 1 2 9 3 2 1 4 4 , , 6 6 0 0 5 6 2 2 7 7 , , 1 0 1 2 7 6 L 1, . 3 2 0 9 5 9 5 5 1 4 2 9 1 1 , , 3 4 7 8 2 1 7 79 5 6 9 1 1 6 6 , , 2 1 5 9 3 4 1 15 5 , , 5 4 0 2 7 6 7 74 6 6 7 Aug 172 18,328 5,171 13,157 377 18,876 23,927 4,609 27,009 1,307 668 1,404 752 16,273 15,626 647 1951—june p < _ 17022,797 6,826 15,971 946 23,913 21,755 4,647 27,548 L.286 280 1,162 731 19,309 18,475 834 July 19423,059 6,113 16,946 1,032 24,285 21,757 4,656 27,859 1,291 405 1,158 756 19,229 18,473 756 Aug 292 23,123 5,822 17,301 848 24,263 21,790 4,666 27,951 1,288 483 1,104 719 19,174 For footnotes see preceding page. MAXIMUM RATES ON TIME DEPOSITS MEMBER BANK RESERVE REQUIREMENTS [Per cent per annum] [Per cent of deposits] Nov. 1, 1933-Feb. 1, 1935- Effective Net demand deposits > Jan. 31, 1935 Dec. 31, 1935Jan. 1, 1936 Time Effective date deposits Savings deposits of change C re e s n e t r r v a e l Re c s i e ty rve Country me ( m al b l er O Po th s e ta r l d S e a p v o i s n i g ts s p de a p y o a s b i l t e s : b c a i n ty ks banks banks banks) In 6 months or more In 90 days to 6 months. . . In less than 90 days 1938—Apr. 16 22 X 12 5 1941—Nov. 1 26 20 2 14 6 est N ab O li T s E he .— d M by a x t im he u m B o r a a r t d e s of t h G at o v m er a n y o r b s e u p n a d i e d r b p y r ov m is e i m on b s e r of b a R nk eg s ul a a s - 1942— O S A e c u p t g . t . . 2 1 3 0 4 2 2 2 4 2 0 tion Q. Under this Regulation the rate payable by a member bank 1948—Feb. 27 22 may not in any event exceed the maximum rate payable by State June 11 24 b in a n w k h s ic o h r t t r h u e s t m c e o m m b p e a r n b ie a s n k o n i s l i l k o e c a d t e e p d o . sits M u a n x d im er u m th e r a la te w s s t o h f a t t h m e a S y t a b t e e Sept. 16 16 e p f a f i e d c ti b v y e F in e s b u . r 1 e , d 19 n 3 o 6 n , m a e re m t b h e e r sa b m an e k a s s t a h s os e e s t i a n b l e i f s f h ec e t d fo b r y m t e h m e b F er . D b . a I n .C ks ., . 1949— S M e a p y t. 24 1 26 22 is \jH May 5 24 21 «7 June 30 20 *6 July 1 14 »6 MARGIN REQUIREMENTS * Aug. 1 13 [Per cent of market value] Aug. 11 2334 19H »5 Aug. 16 12 »5 Feb. 1, Mar. 30, Effec- Aug. 18 23 19 Prescribed in accordance with 1947- 1949- tive Aug. 25 22^ Securities Exchange Act of 1934 Mar. 29, Jan. 16, Jan. 17, Sept. 1 22 18 1949 1951 1951 1951—Jan. 11 23 19 *6 Jan. 16 13 Jan. 25 24 20 Regulation T: Feb. 1 14 For extensions of credit by brokers In effect Sept. 1, 1951* 24 20 14 6 and dealers on listed securities 75 50 75 Re F F g o o u r r l a l s t o h i a o o n n r s t U s b a y : l e b s anks on stocks 7 7 5 5 5 5 0 0 7 7 5 5 A in u 1 p g r D . o e c 2 m e 3 s , a s n 1 o d 9 f 3 d c 5 e o , p ll o h e s a c i v t t i s e o n s b u a e b n e j n d e c d t t o e t m t o a l a r n e d d se e r m b v a e a l n a r d n e c q e d u s e i r p d e o u m s e i e t f s n r o ts m m , i w n d u h o s i m c h e c a s b t s i e h c g i b i n t a n e n i m k n * g i (also minus war loan and series E bond accounts during the period 1 Regulations T and U limit the amount of credit that may be ex- Apr. 13, 1943-June 30, 1947). tended on a security by prescribing a maximum loan value, which is a 8 Requirement became effective at country banks. « Requirement •pecified percentage of its market value at the time of the extension; the became effective at central reserve and reserve city banks. "margin requirements" shown in this table are the difference between 4 Present legal minimum and maximum requirements on net demand the market value (100%) and the maximum loan value. deposits—central reserve cities, 13 and 26 per cent; reserve citiei, Back figures.—See Banking and Monetary Statistics, Table 145, p. 504, 10 and 20 per cent; country, 7 and 14 per cent, respectively; on time and BULLETIN for March 1946, p. 295, and February 1947, p. 162. deposits at all member banks, 3 and 6 per cent, respectively. Back figures— See Banking and Monetary Statistics, Table 107, p. 400. 1142 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 ( S s e e e c s u . r e 1 d 3 b a y n d e l 1 ig 3 i a b ) l 1 e paper [Sec. 10(b)] (last par. Sec. 13) Rate on In effect Previous Rate on In effect Previous Rate on In effect Previous Aug. 31 beginning— rate Aug. 31 beginning— rate Aug. 31 beginning— rate N P B h o e i w s l t a o d Y n e o lp rk hia \% A A A u u u g g g . . . 2 2 2 1 1 5 , , , 1 1 1 9 9 9 5 5 5 0 0 0 IK 2 2 H M A A A u u u g g g . . . 2 2 2 1 1 5 , , , 1 1 1 9 9 9 5 5 5 0 0 0 2 2 2 2 2 y y 2 2 2 J A O a u n c g . t . . 2 1 3 3 4 0 , , , 1 1 1 9 9 9 4 4 4 8 8 2 h Cleveland Aug. 25, 1950 2H Aug. 25, 1950 2 2% Aug. 25, 1950 A Ri t c la h n m ta ond l$t A A u u g g . . 2 24 5 , , 1 1 9 9 5 5 0 0 2 2 H H A A u u g g . . 2 24 5 , , 1 1 9 9 5 5 0 0 2 2 2 2 ~ % y2 2 A O u c g t . . 2 2 4 8 , , 1 1 9 9 5 4 0 2 2}/> Chicago IV Aug. 25, 1950 2H Aug. 25, 1950 2 2% Aug. 13, 1948 St. Louis il Aug. 23, 1950 2% Aug. 23, 1950 2 Jan. 12, 1948 2 D M K a a in l n l n s a a e s s a p C o i l t i y s A A A u u u g g g . . . 2 2 2 2 5 5 , , , 1 1 1 9 9 9 5 5 5 0 0 0 2XX A A A u u u g g g . . . 2 2 2 5 2 5 , , , 1 1 1 9 9 9 5 5 5 0 0 0 2 2 2 2% A J F a e u n b g . . . 2 1 1 3 4 9 , , , 1 1 1 9 9 9 4 4 4 8 8 8 2 2 y2 San Francisco Aug. 24, 1950 iy 2 2M Aug. 24, 1950 2 2H 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 13a of the Federal Reserve Act (except that discounts of certain bankers' acceptances and of agricultural paper may have maturities not exceeding 6 months and 9 months, respectively); and 4 months for advances under Section 10(b). The maximum maturity for advances to individuals, partnerships, or corporations made under the last paragraph of Section 13 is 90 days. Back figures.—See Banking and Monetary Statistics, Tables 115-116, pp. 439-443. FEDERAL RESERVE BANK RATES ON INDUSTRIAL LOANS FEDERAL RESERVE BANK BUYING RATES ON ACCEPTANCES AND COMMITMENTS UNDER SECTION 13B [Per cent per annum] OF THE FEDERAL RESERVE ACT Maturity A R u a g te . 3 o 1 n In g i e n f n fe in c g t — be- Pre ra v t i e ous Maturities not exceeding five years [In effect August 31. Per cent per annum] 1- 90 days IS Aug. 21, 1950 91-120 days Aug. 21, 1950 & 121-180 days Aug. 21, 1950 2 1M To industrial or commercial To financing institutions NOTE.—Minimum buying rates at the Federal Reserve Bank of businesses New York on prime bankers' acceptances payable in dollars. The same rates generally apply to any purchases made by the other Federal Reserve Banks. Federal On discounts or Back figures.—See Banking and Monetary Statistics, Table 117, pp. Reserve purchases 443-445. Bank On com O m n it- Portion co O m n mitloans 1 ments for which Re- ments FEES AND RATES ESTABLISHED UNDER REGULATION V institu- maining ON LOANS GUARANTEED PURSUANT TO DEFENSE tion is portion PRODUCTION ACT OF 1950 AND EXECUTIVE obligated ORDER NO. 10161 [In effect August 31] Boston Fees Payable to Guaranteeing Agency by Financing Institution on New York Guaranteed Portion of Loan Philadelphia. . . . Cleveland Richmond Guarantee fee Percentage of Atlanta Percentage of (percentage of any commitment Chicago loan guaranteed interest payable fee charged St. Louis by borrower) borrower Minneapolis.... Kansas City. . . . 2y s Dallas 2V2 2 -S 70 or less 10 10 San Francisco... 2Y2-S 75 15 15 80 . .. 20 20 85 25 25 1 Including loans made in participation with financing institutions. 90 30 30 2 Rate charged borrower less commitment rate. 95. . . 35 35 3 Rate charged borrower. Over 95 40-50 40-50 4 Rate charged borrower but not to exceed 1 per cent above the discount rate. 5 Charge of % per cent is made on undisbursed portion of loan. Maximum Rates Financing Institutions May Charge Borrowers Back figures.—See Banking and Monetary Statistics, Table 118, [Per cent per annum] pp. 446-447. Interest rate Commitment rate. SEPTEMBER 1951 1143 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 1951 1951 1950 Aug. 29 Aug. 22 Aug. 15 Aug. 8 Aug. 1 July 25 July 18 Aug. July Aug. Assets Gold certificates 19,896,17919,899,40219,901,40319,851,40119,843,40319,845,40319,845,40319,936,18019,843,40221,871,430 Redemption fund for F. R. notes 665,211 664,877 665,890 668,540 660,639 658,846 661,216 675,196 660,639 518,036 Total gold certificate reserves.... 20,561,390 20,564,27920,567,29320,519,94120,504,042 20,504,249 20,506,61920,611,376 20,504,04122,389,466 Other cash 329,705 328,590 332,379 328,916 342,627 336,926 326,842 330,730 340,343 240,188 Discounts and advances: For member banks. . . 277,878 214,262 242,000 200,355 407,971 78,082 299,626 552,486 276,651 82,390 For nonmember banks, etc Total discounts and advances 277,5 214,262 242,000 200,355 407,971 78,082 299,626 552,486 276,651 82,390 Industrial loans........ 5,606 5,429 5,850 5,875 5,893 5,819 5,496 5,693 5,741 2,249 U. S. Govt. securities: Bills 556,592 574,492 638,192 599,492 568,592 548,272 572,472 615,942 565,692 2,301,507 Certificates: Special Other 4,848,575 4,848,575 4,852,175 4,858,275 4,851,675 3,193,792 3,193,792 4,850,575 3,196,892 4,847,536 Notes 11,838,465 11,838,465 11,838,465 11,838,465 11,838,465 13,493,248 13,493,248 11,838,465 13,493,248 4,438,800 Bonds 5,822,102 5,822,102 5,822,102 5,822,102 5,822,102 5,822,102 5,822,102 5,822,102 5,822,102 6,767,828 Total U. S. Govt. securities 23,065,734 23,083,634 23 150,934 23,118 334 23,080,83423,057,414 23,081,61423,127,084 23,077,93418,355,671 Other Reserve Bank credit outstanding.... 651,855 871,529 961,103 721,549 787,720 921,755 1,217,852 623,993 673,167 379,341 Total Reserve Bank credit outstanding24,001,07324,174,854 24,359,887 24,046,11324,282,41824,063,07024,604,588 24,309,256 24,033 ,49318,819,651 Liabilities Federal Reserve notes. . 23,903,31823,800,88823,795,09623,774,14623,729,88723,601,818 23,654,11124,020,36623,726,16722,947,030 Deposits: Member bank — reserve accounts 18,870,69019,171,75619,285,21719,327,77519,098,84719,087,56819,380,39019,180,67218,863,28315,988,562 U. S. Treasurer—general account 556,942 433,612 494,921 203,450 557,467 423,532 611,817 459,321 584,321 732,654 Foreign 784,441 824,626 867,470 870,622 828,469 879,607 867,206 760,441 840,290 915,899 Other 215,375 270,788 245,531 145,496 347,447 310,738 316,226 277,921 318,400 274,433 Total deposits 20.427,44820,700,78220,893,139 20,547,343 20,832,23020,701,445 21,175,639 20,678,355 20,606,294 17,911,548 Ratio of gold certificate reserves to deposit and F. R. note liabilities combined (per cent)... 46.2 46.0 46.3 46.0 46.3 45.7 46.1 46.3 54.8 MATURITY DISTRIBUTION OF LOANS AND U. S. GOVERNMENT SECURITIES HELD BY FEDERAL RESERVE BANKS (Callable Government securities classified according to nearest call date) [In thousands of dollars] Within 16 to 90 91 days to Over 1 year Over 5 years Over Total 15 days days 1 year to 5 years to 10 years 10 years Discounts and advances: Aug. 1 407,971 390,415 17,484 72 Aug. 8 200,355 183,113 17,151 91 Aug. 15 242,000 229,203 12,757 40 Aug. 22 214,262 203,407 10,852 3 Aug. 29 277,878 268,352 9,526 Industrial loans: Aug. 1 5,893 340 1,019 3,913 621 Aug. 8 5,875 586 1,817 3,030 442 Aug. 15 5,850 399 1,026 3,616 ^00 Aug. 22 5,429 615 836 3,164 814 Aug. 29 5,606 648 727 3,418 813 U. S. Government securities: Aug. 1 23,080,834 304,325 4,509,717 9,246,142 4,878,166 1,031,904 3,110,580 Aug. 8 23,118,334 313,525 7,566,059 6,218,100 4,878,166 1,031,904 3,110,580 Aug. 15 23,150,934 371,137 7,541,047 6,218,100 4,878,166 1,031,904 3,110,580 Aug. 22 23,083,634 192,212 7,652,672 6,218,100 4,878,166 1,031,904 3,110,580 Aug. 29 23,065,734 164,312 7,662,672 6,218,100 4,878,166 1,031,904 3,110,580 1144 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] San Total Boston Y N o ew rk - d P e h lp il h a i - a C l l a e n v d e- m Ri o c n h d - Atlanta Chicago Lo S u t i . s M a i p n ol n i e s - Ka C n it s y as Dallas F c r i a sc n o - Assets Gold certificates: Aug. 1 19,843,403 666,880 6,350,491 1,155,1461,488,546 830,291 851,9314,228,621 495,247 329,200 719,328 440,315 2,.287,407 Aug. 8 19,851,401 618,246 6,470,989 1,141,0231,485,930 829,349 830,648 4,149,219 499,532 302,781 697,520 485,6632,340,501 Aug. 15 19,901,403 628,289 6,383,513 1,182,9531,479,133 825,010 815,346 4172,476 487,979 305,245 725,173 488,6012,407,685 Aug. 22 19,899,40: 607,646 6,453,784 1,156,9881,485,166 823,589 851,7314,184,712 500,821 311,780 689,628 501,3902,332,167 Aug. 29 19,896,179 600,586 6,402,744 1,153,357 ,490,867 837,014 855,813 4,265,320 514,347 300,035 696,797 510,1102,269,189 Redemption fund for F. R. notes: Aug. 1 660,639 60,327 57,055 55,649 75,435 62,665 48,361 111,422 46,291 23,878 35,942 28,377 55,237 Aug. 8 668,540 60,111 66,383 55,272 75,165 63,253 48,159 111,092 46,204 23,838 35,871 28,311 54,881 Aug. 15 665,890 60,001 65,890 55,083 75,018 62,034 48,050 110,929 46,152 23,822 35,836 28,277 54,798 Aug. 22 664,87 59,835 65,306 54,764 74,797 62,737 47,885 110,929 46,070 23,797 35,783 28,277 54,697 Aug. 29 665,211 59,706 64,888 54,547 75,831 63,693 47,770 110,461 46,017 23,776 35,743 28,181 54,598 Total gold certificate reserves: Aug. 1 20,504,042 727,207 6,407,546 1,210,7951,563,981 892,956 900,2924,340,043 541,538 353,078 755,270 468,692 2,342,644 Aug. 8 20,519,941 678,357 6,537,372 1,196,2951,561,095 892,602 878,8074,260,311 545,736 326,619 733,391 513,974 2,395,382 Aug. 15 20,567,293 688,290 6,449,403 1,238,0361,554,151 887,044 863,396 4,283,405 534,131 329,067 761,009 516,878 2,462,483 Aug. 22 20,564,279 667,481 6,519,090 1,211,7521,559,963 886,326 899,616 4,295,641 546,891 335,577 725,411 529,6672,386,864 Aug. 29 20,561,390 660,292 6,467,632 1,207,9041,566,698 900,707 903,5834,375,781 560,364 323,811 732,540 538,2912,323,787 Other cash: Aug. 1 342,62 35,786 64,833 19,257 25,107 16,333 25,466 66,809 16,057 8,283 11,884 14,182 38,630 Aug. 8 328,916 34,827 62,949 18,699 22,934 15,716 24,487 65,165 15,421 8,207 11,507 13,214 35,790 Aug. 15 332,379 31,934 69,051 16,531 24,348 15,618 24,152 64,668 15,380 7,878 11,410 14,436 36,973 Aug. 22 328,590 29,189 65,832 17,083 21,631 17,055 25,391 64,862 17,158 8,504 11,255 13,575 37,055 Aug. 29 329,705 27,352 69,197 17,577 24,731 16,221 22,582 63,672 17,254 7,726 12,703 13,565 37,125 Discounts & advances : Secured by i U. S. Govt. securities: Aug. 1. . 407,125 9,400 200,278 5,235 23,175 7,260 2,482 34,455 18,765 12,975 6,288 1,161 85,651 Aug. 8. . 199,503 9,875 86,653 2,205 2,900 16,290 1,332 24,955 2,150 1,125 10,467 1,0001 40,551 Aug. 15. . 241,346 11,600 97,393 7,615 1,550 13,020 11,020 10,255 8,900 10,325 6,117 300 63,251 Aug. 22. . 213,565 7,125 61,698 3,470 6,700 19,800 4,270 9,635 11,425 9,425 13,767 100 66,150 Aug. 29. . 277,085 11,525 98,733 13,720 13,000 29,320 7,370 40,435 19,950 11,225 29,542 415 1,850 Other: Aug. 1. . 846 46 100 546 28 126 Aug. 85: 46 100 100 452 28 126 Aug. 15 654 46 100 95 241 46 126 Aug. 22. . 69 35 100 95 100!. 229 46 92 Aug. 29. . 793 34 100 195 100J. 229 43 92 Industrial loans: Aug. 1 5,89. 3,935 429 278 311 148 48 721 Aug. 5,875 4,064 418 275 311 147 64 573 Aug. 15 5,850 3,961 440 269 372 147 65 573 Aug. 22 5,429 3,928 459 274 372 U 62 164 Aug. 29 5,606 4,186 322 273 427 14 64 164 U. S. Govt. securities: Bills: Aug. 1. . . . 568,592 221,759 30,138 44,743 31,849 25,846 88,381 21,122 14,909 22,553 2O,222j 47,070 Aug. 599,492 10,334 206,111 33,366 49,534 35,260 28,614 105,846 11,136 16,835 24,969 25,376 52,111 Aug. 15 638,192 20,424 237,675 33,366 49,534 35,260 28,614 90,291 23,737 16,835 24,969 25,376 52,111 Aug. 22 574,492 194,545 33,366 49,534 35,260 28,614 90,291 23,5911 16,835 24,969 25,376 52,111 Au 29.... 556,592 ' Yl',543 168,672 33,366 49,534 35,260 28,614 90,291 20,021 16,835 24,969 25,376 52,111 Certificates: Aug. 1 4,851,675 333,034 1,092,478 305,072 452,905 322,396 261,624 729,129 264,340 153,923 228,290 232,014 476,470 Aug. 8. .. .4,858,275 344,147 1,093,905 305,072 452,905 322,396 261,624 723,189 264,340 153,923 228,290 232,014 476,470 Aug. 15 4,852,175 344,147 1,087,805 305,072 452,905 322,396 261,624 723,189 264,340 153,923 228,290 232,014 476,470 Aug. 22 4,848,57 343,294 1,085,058 305,072 452,905 322,396 261,624 723,189 264,340 153,923 228,290 232,014 476,470 Aug. 29.... 4,848,575 344,147 1,084,205 305,072 452,905 322,396 261,624 723,189 264,340 153,923 228,290 232,014j 476,470 Notes: Aug. 1 11,838,465 813,150 2,659,857 744,8761,105,832 787,176 638,7921,780,276 645,421 375,823 557,402 566,4941,163,366 Aug. 8 11,838,465 840,282 2,647,234 744,8761,105,832 787,176 638,7921,765,767 645,421 375.823 557,402 566,4941,163,366 Aug. 15 11,838,465 840,282 2,647,234 744,8761,105,832 787,176 638,7921,765,767 645,421 375,823 557,402 566,4941,163,366 Aug. 22....11,838,465 838,205 2,649,311 744,8761,105,832 787,176 638,7921,765,767 645,421 375,823 557,402 566,4941,163,366 Aug. 29....11,838,465 840,282 2,647,234 744,8761,105,832 787,176 638,7921,765,767 645,421 375,823 557,402 566,4941,163,366 Bonds: Aug. 1 5,822,102 399,903 1,308,110 366,327 543,842 387,129 314,155 875,527 317,415 184,829 274,128 278,599 572,138 Aug. 5,822,102 413,247 1,301,898 366,327 543,842 387,129 314,155 868,395 317,415 184,829 274,12 278,599 572,138 Aug. 15 5,822,102 413,247 1,301,898 366,327 543,842 387,129 314,155 868,395 317,415 184,829 274,128 278,599 572,138 Aug. 22.... 5,822,102 412,222 1,302,923 366,327 543,842 387,129 314,155 868,395 317,415 184,829 274,128 278,599 572,138 Aug. 29.... 5,822,102 413,247 1,301,898 366,327 543,842 387,129 314,155 868,395 317,415 184,829 274,128 278,599 572,138 Total U. S. Govt. securities: Aug. 1 23,080,834 1,546,087 5,282,2041,446,413 2,147,322 ,528,550 1,240,4173,473,3131,248,298 729,4841,082,3731,097,329 2,259,044 Aug. 8 23,118,334 1,608,010 5,249,1481,449,641 2,152,1131,531,961 1,243,1853,463,1971,238,312 731,4101,084,7891,102,483 2,264,085 Aug. 15 23,150,934 1,618,100 5,274,6121,449,641 2,152,1131,531,961 1,243,1853,447,6421,250,913 731,4101,084,7891,102,483 2,264,085 Aug. 22 23,083,634 1,593,721 5,231,8371,449,641 2,152,1131,531,961 1,243,1853,447,6421,250,767 731,4101,084,7891,102,483 2,264,085 Aug. 29 23,065,734 1,609,219 5,202,0091,449,641 2,152,1131,531,961 ,243,185 3,447,6421,247,197 731,4101,084,7891,102,483 2,264,085 Total loans and securities: Aug. 1 23,494,698 1,555,533 5,482,5051,455,583 2,170,9261,536,088 1,243,3103,507,7681,267,063 742,6071,089,2071,098,566 :2,345,542 Aug. 8 23,324,564 1,617,931 5,335,8241,455,910 2,155,5311,548,526 1,244,9283,488,1521,240,462 732,6821,095,7081,103,575 2,305,335 Aug. 15 23,398,784 1,629,746 5,372,0281,461,217 2,154,2031,545,250 1,254,6723,457,8971,259,813 741,8821,091,1471,102,894 : Aug. 22 23,303,325 1,600,881 5,293,5581,457,039 2,159,3721,552,035 1,247,9223,457,2771,262,292 740,9821,098,7851,102,691 Aug. 29 23,349,218 1,620,778 5,300,7651,467,547 2,165,5351,561,554 1,251,1773,488,0771,267,247 742,7821,114,5601,103,005 2,266,191 SEPTEMBER 1951 1145 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] San Total Boston Y N o e r w k d P e h lp il h a i - a C l l a e n v d e- m Ri o c n h d - Atlanta Chicago L S ou t. is M ap in o n li e s - K C an it s y as Dallas F c r is a c n o - Assets (cont.) Due from foreign banks: Aug. 1 38 2 112 3 4 2 2 5 1 1 1 4 Aug. 8 38 2 i 12 3 4 2 2 5 1 1 1 4 Aug. 15 38 2 112 3 4 2 2 5 1 1 1 4 Aug. 22 38 2 112 3 4 2 2 5 1 1 1 4 Aug. 29 38 2 112 3 4 2 2 5 1 1 1 4 Federal Reserve notes of other Banks: Aug. 1 154,839 8,029 19,798 8,419 6,892 27,634 14,109 16,913 8,208 9,441 7,581 9,721 18,094 Aug. 8 147,008 5,426 22,745 6,347 5,940 24,274 12,469 17,134 8,403 10,397 8,831 7,461 17,581 Aug. 15 148,101 8,200 22,611 8,036 5,665 25,549 11,780 14,387 7,373 10,140 9,459 7,662 17,239 Aug. 22 151,651 8,457 21,105 9,822 6,717 25,122 10,973 15,824 7,559 10,816 8,401 7,961 18,894 Aug. 29 155,975 9,493 21,584 8,071 6,758 26,840 12,082 17,489 7,633 12,048 9,206 6,451 18,320 Uncollected cash items: Aug. 1 3,193,873 273,593 634,175 193,399 294,394 243,815 199,694 510,466 137,173 92,268 179,971 138,210 296,715 Aug. 8 3,008,811 251,450 549,573 177,180 258,699 238,621 197,342 525,132 142,870 91,684 176,777 132,909 266,574 Aug. 15 3,796,864 319,496 715,441 221,417 350,919 305,681 250,167 656,487 164,488 117,180 194,056 175,048 326,484 Aug. 22 3,388,181 298,076 634,468 208,223 296,648 262,633 205,561 540,933 143,822 101,951 205,207 174,968 315,691 Aug. 29 3,018,285 241,884 555,625 182,656 287,590 244,130 186,464 510,562 134,325 97,086 175,746 134,519 267,698 Bank premises: Aug. 1 41,973 1,041 7,556 2,882 4,704 3,450 2,408 6,101 3,371 1,096 2,511 659 6,194 Aug. 8 42,187 1,041 7,556 2,882 4,704 3,662 2,408 6,101 3,373 1,096 2,511 659 6,194 Aug. 15 42,250 1,041 7,571 2,882 4,701 3,667 2,454 6,101 3,373 1,096 2,511 659 6,194 Aug. 22 42,329 1,041 7,571 2,882 4,701 3,667 2,453 6,181 3,373 1,096 2,511 659 6,194 Aug. 29 42,256 1,036 7,571 2,876 4,701 3,664 2,450 6,155 3,352 1,093 2,511 659 6,188 Other assets: Aug. 1 163,361 11,804 35,472 10,151 15,765 10,867 9,010 24,469 8,662 5,084 7,932 7,670 16,475 Aug. 8 171,600 12,896 37,330 10,621 16,446 11,341 9,477 25,438 9,109 5,333 8,310 8,037 17,262 Aug. 15 179,050 13,238 39,019 11,089 17,084 11,945 9,862 26,512 9,523 5,588 8,690 8,503 17,997 Aug. 22 186,636 13,730 40,948 11,571 17,724 12,528 10,270 27,648 9,936 5,845 8,941 8,810 18,685 Aug. 29 193,206 14,323 42,348 11,868 18,386 13,016 10,660 28,545 10,354 6,084 9,277 9,151 19,194 Total assets: Aug. 1 47,895,451 2,612,995 12,651,8972,900,4894,081,7732,731,1452,394,2918,472,5741,982,0731,211,8582,054,357 1,737,7015,064,298 Aug. 8 47,543,065 2,601,930 12,553,3612,867,9374,025,3532,7 34,7 U 2,369,9208,387,4381,965,3751,176,0192,037,0361,779,8305,044,122 Aug. 15 48,464,759 2,691,947 12,675,1362,959,2114,111,0752,794,7562,416,4858,509,4621,994,0821,212,8322,078,283 1,826,0815,195,409 Aug. 22 47,965,029 2,618,857 12,582,5842,918,3754,066,7602,759,3682,402,1888,408,3711,991,0321,204,7722,060,512 1,838,3325,113,878 Aug. 29 47,650,073 2,575,160 12,464,7342,898,5024,074,4032,766,1342,389,0008,490,2862,000,530 1,190,6312,056,5441,805,6424,938,507 Liabilities Federal Reserve notes: Aug. 1 23,729,887 1,454,729 5,308,8291,674,7012,149,4611,603,1541,291,4864,606,9131,086,092 604,785 925,543 648,0732,376,121 Aug. 8 23,774,146 1,454,831 5,299,4761,678,1772,158,6001,609,2741,292,1914,614,220 1,086,601 607,213 931,052 652,4042,390,107 Aug. 15 23,795,096 1,452,674 5,307,4081,678,4582,166,1731,610,1651,288,3004,620,957 1,088,579 606,348 929,122 652,9942,393,918 Aug. 22 23,800,888 1,449,348 5,309,7111,679,1692,168,991 1,616,1361,284,4074,623,847 1,087,521 607,346 931,245 654,5722,388,595 Aug. 29 23,903,318 1,451,330 5,320,5761,684,2562,174,629 1,649,1061,305,0484,622,8411,091,632 605,747 931,379 662,9482,403,826 Deposits: Member bank —reserve accounts: Aug. 1. . 19,098,847 798,336 6,082,563 897,3831,487,146 793,773 816,5153,106,833 676,410 444,450 893,505 877,6942,224,239 Aug. 8. . 19,327,775 811,640 6,179,190 899,1311,465,848 811,226 828,7073,138,817 681,348 429,554 898,632 934,3052,249,377 Aug. 15.. 19,285,217 822,408 6,077,344 910,2701,455,656 808,264 821,2253,123,152 682,669 437,466 906,741 932,0442,307,978 Aug. 22. . 19,171,756 817,568 6,080,421 897,8451,466,449 798,984 835,6123,087,081 679,504 440,087 874,132 935,2702,258,803 Aug. 29. . 18,870,690 780,289 5,984,801 893,3651,455,204 791,175 804,4553,153,822 682,883 419,417 891,684 930,7182,082,877 U. S. Treasurer—general acc A o u u g n . t : 1. . 557,467 29,664 61,827 27,794 49,556 46,919 45,014 119,703 37,172 41,224 36,832 22,477 39,285 Aug. 8. . 203,450 20,955 57,063 4,057 21,496 20,707 6,737 15,462 11,767 16,936 12,998 13,422 1,850 Aug. 15. . 494,921 42,859 115,209 47,198 55,577 34,363 20,694 36,067 17,175 26,466 24,659 28,475 46,179 Aug. 22.. 433,612 25,732 75,369 31,571 35,140 39,253 33,139 30,951 35,319 30,940 25,411 30,352 40,435 Aug. 29.. 556,942 33,061 83,954 30,028 50,017 34,734 41,857 84,764 46,701 41,130 36,017 27,824 46,855 Foreign: Aug. 1. . 828,469 51,665 2 250,979 65,831 77,497 41,665 34,999 114,995 30,832 20,833 30,832 30,832 77,509 Aug. 8.. 870,622 50,728 2 303,598 64,638 76,093 40,910 34,364 112,912 30,273 20,455 30,273 30,273 76,105 Aug. 15.. 867,470 53,432 2 270,229 68,082 80,147 43,090 36,196 118,928 31,887 21,545 31,887 31,887 80,160 Aug. 22. . 824,626 50,394 2 261,342 64,211 75,590 40,640 34,138 112,166 30,074 20,320 30,074 30,074 75,603 Aug. 29. . 784,441 48,323 2 244,303 61,573 72,484 38,970 32,735 107,557 28,838 19,485 28,838 28,838 72,497 Other: Aug. 1. . 347,447 5,383 270,626 2,381 4,134 3,575 2,108 6,799 7,077 2,185 2,955 1,027 39,197 Aug. 8.. 145,496 4,401 80,398 1,839 3,812 3,960 2,021 1,673 8,267 1,919 1,046 759 35,401 Aug. 15.. 245,531 3,761 184,122 2,347 4,325 3,302 2,903 2,133 7,540 944 713 824 32,617 Aug. 22. . 270,788 3,776 201,270 3,703 4,454 1,555 2,320 2,542 7,160 1,423 206 2,785 39,594 Aug. 29.. 215,375 3,033 158,358 2,449 4,721 1,715 1,581 1,956 7,268 1,133 155 761 32,245 Total deposits: Aug. 1 20,832,230 885,048 6,665,995 993,3891,618,333 885,932 898,6363,348,330 751,491 508,692 964,124 932,0302,380,230 Aug. 8 20,547,343 887,724 6,620,249 969,6651,567,249 876,803 871,8293,268,864 731,655 468,864 942,949 978,7592,362,733 Aug. 15 20,893,139 922,460 6,646,9041,027,8971,595,705 889,019 881,0183,280,280 739,271 486,421 964,000 993,2302,466,934 Aug. 22 20,700,782 897,470 6,618,402 997,3301,581,633 880,432 905,2093,232,740 752,057 492,770 929,823 998,4812,414,435 Aug. 29 20,427,448 864,706 6,471,416 987,4151,582,426 866,594 880,6283,348,099 765,690 481,165 956,694 988,1412,234,474 i After deducting $26,000 participations of other Federal Reserve Banks on Aug. 1; Aug. 8; Aug. 15; Aug. 22; and Aug. 29. 'After deducting $577,477,000 participations of other Federal Reserve Banks on Aug. 1; $567,012,000 on Aug. 8; $597,227,000 on Aug. 15; 563,270,000 on Aug. 22; and $540,124,000 on Aug. 29. 1146 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENT OF CONDITION OF THE FEDERAL RESERVE BANKS, BY WEEKS—Continued [In thousands of dollars] San Total Boston Y N o ew rk - d P e h lp il h a i - a C l l a e n v d e- m Ri o c n h d - Atlanta Chicago L S ou t. is M ap in o n li e s - K C an it s y as Dallas F c r is a c n o - Liabilities (cont.) Deferred availability items: Aug. 1 2,406,191 213,846 407,199 160,736 228,005 192,963 162,646 389,215 107,156 73,044 127,989 121,267 222,125 Aug. 8 2,287,300 199,903 361,955 147,961 212,913 199,093 164,024 374,883 109,394 74,335 126,029 112,023 204,787 Aug. 15.... 2,835,799 256,283 447,324 180,432 262,247 245,696 205,007 478,337 128,240 94,021 147,896 142,845 247,471 Aug. 22.... 2,516,690 211,845 379,911 168,959 228,425 212,431 170,007 420,753 113,066 78,686 161,831 147,898 222,878 Aug. 29-... 2,366,468 198,668 396,621 153,592 229,070 199,632 160,388 387,751 104,469 77,413 130,506 116,860 211,498 and accrued dividends: Aug. 1.... 13,682 1,722 3,369 648 1,532 623 579 1,995 596 449 539 506 1,124 Aug. 8 14,762 1,317 3,805 761 1,559 706 629 2,498 615 537 511 544 1,280 Aug. 15 15,738 2,084 4,321 690 1,385 639 623 2,067 611 792 552 631 1,343 Aug. 22 15,268 1,247 4,090 812 1,603 735 711 2,248 654 523 567 723 1,355 Aug. 29.... 15,718 1,228 4,379 778 1,613 777 782 1,949 690 663 572 759 1,528 Total liabilities: Aug. 1.... 46,981,990 2,555,345 12,385,3922,829,4743,997,3312,682,6722,353,3478,346,4531,945,3351,186,9702,018,195 1,701,8764,979,600 Aug. 8 46,623,551 2,543,775 12,285,4852,796,5643,940,3212,685,8762,328,6738,260,4651,928,2651,150,9492,000,5411,743,7304,958,907 Aug. 15. .. . 47,539,772 2,633,50112,405,9572,887,4774,025,5102,745,5192,374,9488,381,6411,956,7011,187,5822,041,5701,789,7005,109,666 Aug. 22.... 47,033,628 2,559,91012,312,1142,846,2703,980,6522,709,7342,360,3348,279,5881,953,2981,179,3252,023,4661,801,6745,027,263 Aug. 29 46,712,952 2,515,932 12,192,9922,826,0413,987,7382,716,1092,346,8468,360,6401,962,4811,164,9882,019,151 1,768,7084,851,326 Capital Accts.: Capital paid in: Aug. 1 232,566 12,336 74,873 16,562 22,209 10,186 9,524 29,688 7,960 5,273 8,743 10,515 24,697 Aug. 8.... 232,677 12,337 74,890 16,568 22,271 10,189 9,525 29,692 7,967 5,275 8,745 10,517 24,701 Aug. 15 232,720 12,337 74,889 16,573 22,274 10,193 9,525 29,702 7,967 5,277 8,745 10,522 24,716 Aug. 22.... 232,895 12,337 74,891 16,590 22,286 10,196 9,535 29,708 7,984 5,278 8,746 10,523 24,821 Aug. 29.... 232,932 12,341 74,892 16,590 22,297 10,198 9,535 29,713 7,984 5,278 8,749 10,524 24,831 Surplus: (section 7): Aug. 1 510,022 32,246 153,290 39,710 48,014 25,167 22,369 75,345 20,295 13,168 19,047 16,852 44,519 Aug. 8 510,022 32,246 153,290 39,710 48,014 25,167 22,369 75,345 20,295 13,168 19,047 16,852 44,519 Aug. 15.... 510,022 32,246 153,290 39,710 48,014 25,167 22,369 75,345 20,295 13,168 19,047 16,852 44,519 Aug. 22.... 510,022 32,246 153,290 39,710 48,014 25,167 22,369 75,345 20,295 13,168 19,047 16,852 44,519 Aug. 29 510,022 32,246 153,290 39,710 48,014 25,167 22,369 75,345 20,295 13,168 19,047 16,852 44,519 (section 13b): Aug. 1 27,543 3,011 7,319 4,489 1,006 3,349 762 1,429 521 1,073 1,137 1,307 2,140 Aug. 8 27,543 3,011 7,319 4,489 1,006 3,349 762 1,429 521 1,073 1,137 1,307 2,140 Aug. 15.... 27,543 3,011 7,319 4,489 1,006 3,349 762 1,429 521 1,073 1,137 1,307 2,140 Aug. 22... . 27,543 3,011 7,319 4,489 1,006 3,349 762 1,429 521 1,073 1,137 1,307 2,140 Aug. 29. ... 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.: Aug. 1.... 143,330 10,057 31,023 10,254 13,213 9,771 8,289 19,659 7,962 5,374 7,235 7,151 13,342 Aug. 8 149,272 10,561 32,377 10,606 13,741 10,163 8,591 20,507 8,327 5,554 7,566 7,424 13,855 Aug. 15. .. . 154,702 10,852 33,681 10,962 14,271 10,528 8,881 21,345 8,598 5,732 7,784 7,700 14,368 Aug. 22... . 160,941 11,353 34,970 11,316 14,802 10,922 9,188 22,301 8,934 5,928 8,116 7,976 15,135 Aug. 29. .. . 166,624 11,630 36,241 11,672 15,348 11,311 9,488 23,159 9,249 6,124 8,460 8,251 15,691 Total liabilities and cap. accts.: Aug. 1 47,895,451 2,612,99512,651,8972,900,4894,081,7732,731,1452,394,2918,472,5741,982,0731,211,8582,054,357 1,737,7015,064,298 Aug. 8 47,543,065 2,601,93012,553,3612,867,9374,025,3532,734,7442,369,9208,387,4381,965,3751,176,0192,037,0361,779,8305,044,122 Aug. 15 48,464,759 2,691,947 12,675,1362,959,2114,111,0752,794,7562,416,4858,509,4621,994,0821,212,8322,078,2831,826,0815,195,409 Aug. 22 47,965,029 2,618,857 12,582,5842,918,3754,066,7602,759,3682,402 1888,408,3711,991,0321,204,7722,060,512 1,838,332S 113,878 Aug. 29 47,650,073 2,575,16012,464,7342,898,5024,074,4032,766,1342,389,0008,490,2862,000,5301,190,6312,056,5441,805,6424,938,507 Contingent liability on acceptances purchased for foreign correspondents: Aug. 1 25,146 1,561 i 7,702 1,989 2,341 1,259 1,057 3,474 931 629 931 931 2,341 Aug. 8.... 24,077 1,491 i 7,413 1,900 2,236 1,202 1,010 3,318 890 601 890 890 2,236 Aug. 15.... 24,101 1,488 i 7,471 1,896 2,232 1,200 1,008 3,311 888 600 888 888 2,231 Aug. 22 24,125 1,496 1 7,406 1,906 2,243 1,206 1,013 3,329 893 603 893 893 2,244 Aug. 29.... 23,272 1,443 i 7,145 1,838 2,164 1,164 977 3,212 861 582 861 861 2,164 Industrial loan commitments: Aug. 1 3,813 1,168 989 48 447 465 696 Aug. 8.... 3,682 1,038 1,000 48 445 465 686 Aug. 15.... 3,763 1,142 977 48 445 465 686 Aug. 22. . 3,776 1,174 958 48 445 465 686 Aug. 29.... 4,042 913 1,095 48 445 855 686 i After deducting $17,444,000 participations of other Federal Reserve Banks on Aug. 1; $16,664,000 on Aug. 8; $16,630,000 on Aug. 15; $16,719,000 on Aug. 22; and $16,127,000 on Aug. 29. SEPTEMBER 1951 1147 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] New Phila- Cleve- Rich- At- St. Minne- Kansas San Total Boston York delphia land mond lanta Chicago Louis apolis City Dallas Francisco F.R.notes outstanding (issued to Bank): Aug. 1 24,697,257 1,511,3985,569,179 1,760,955 2,267,8991,666,7381,336,979 4,686,415 125,003 620,012 955,301689,4372,507,941 Aug. 8 24,745,791 1,509,8135,575,831 1,768,230 2,279,8431,669,719 ,342,056 4,689,961 132,255619,699 960,457687,9812,509,946 Aug. 15 24,763,305 1,517,809 5,583,3091,764,555 2,277,1641,669,890 1,344,004 44,,669988,,440000 128,965619,564 957,850 688,3702,513,425 Aug. 22 24,796,339 1,515,051 1,760,2742,286,156 1,677,261 1,353,978 44,,669988,,884466 129,869 619,332 961,650 689,8982,529,152 Aug. 29 24,884,003 1,518,569 5,570,4731,762,6742,292,189 1,703,695 ,359,4324,708,420 135,023 617,824 964,348 702,1292,549,227 Collateral held against notes outstanding: Gold certificates: Aug. 1 12,184,000 350,000 4,470,000 700,000 775,000 480,000 510,0002,560,000 250,000150,000 280,000 159,0001,500,000 Aug. 8 12,204,000 350,000 4,470,000 700,000 795,000 480,000 510,000 2,560,000 250,000150,000 280,000159,0001,500,000 Aug. 15 12,204,000 350,000 4,470,000 700,000 795,000 480,000 510,0002,560,000 250,000150,000 280,000159,0001,500,000 Aug. 22 12,214,000 350,000 4,470,000 700,000 795,000 490,000 510,000 2,560,000 250,000150,000 280,000159,0001,500,000 Aug. 29 12,249,000 350,000 4,470,000 700,000 795,000 515,000 510,000 2,560,000 250,000150,000 280,000169,0001,500,000 Eligible paper: Aug. 1 338,315 9,446 200,278 5,235 6,860 18,765 12,975 6,779 77,977 Aug. 8 157,140 9,921 85,203 2,205 15,390 2,150 1,125 10,919 30,227 Aug. 15 213,484 11,646 94,293 7,615 11,420 8,900 10,325 6,358 62,927 Aug. 22 191,516 7,160 61,698 3,470 18,450 11,525 9,425 13,996 65,792 Aug. 29 204,270 11,559 96,083 13,720 20,370 20,050 11,225 29,771 1,492 U. S. Govt. sec: Aug. 1 13,225,000 1,200,000 ,200,000 1,100,0001,500,0001,215,000 900,000 2,200,000 975,000 490,000 700,000 545,0001,200,000 Aug. 8 13,225,000 1,200,000 ,200,000 1,100,0001,500,0001,215,000 900,000 2,200,000 975,000 490,000 700,000 545,0001,200,000 Aug. 15 13,225,000 1,200,000 ,200,000 1,100,0001,500,0001,215,000 900,000 2,200,000 975,000 490,000 700,000545,0001,200,000 Aug. 22 13,225,000 1,200,000 ,200,000 1,100,0001,500,0001,215,000 900,000 2,200,000 975,000 490,000 770000,,000000 554455,,0000001,200,000 Aug. 29 13,225,000 1,200,000 ,200,000 1,100,000 1,500,0001,215,000 900,000 2,260,000 975,000 490,000 700,000545,0001,200,000 Total collateral: Aug. 1 25,747,315 1,559,446 5,870,2781,805,2352,275,0001,701,8601,410,000 4,760,0001,243,765 652,975 986,779704,000 2,777,977 Aug. 8 25,586,140 1,559,921 5,755,2031,802,2052,295,000 1,710,3901,410,000 4,760,0001,227,150 641 990,919704,000 2,730,227 Aug. 15 25,642,484 1,561,646 5,764,2931,807,615 21,295,0001,706,4201,410,000 4,760,0001,233,900 650,325 986,358704,000 2,762,927 Aug. 22 25,630,516 1,557,160 5731,6981,803,470 21,295,0001,723,4501,410,000 4,760,0001,236,.! 993,996 704,0002,765,792 Aug. 29 25,678,270 1,561,5595,766,083 1,813,720 2,295,0001,750,3701,410,000 4,760,0001,245,050 651 1,009,771714,0002,701,492 LOANS GUARANTEED THROUGH FEDERAL RESERVE INDUSTRIAL LOANS BY FEDERAL RESERVE BANKS BANKS UNDER REGULATION. V, PURSUANT TO [Amounts in thousands of dollars] DEFENSE PRODUCTION ACT OF 1950 AND E [ X A E m C ou U n T ts I V in E t h O ou R s D a E nd R s o N f O d . o l 1 la 0 r 1 s 6 ] 1 W D e a d te n e ( s l d as a t y A a p t p p o p l i r c d o a a v t t i e e o d ns b p u r A o t p v - n e o d t L o o u a t n - s C m om e m nt i s t- o in p P f g a a f t r i i i t n o n i a c n s n i t s - c i- or last day com- standing2 out- tutions of period) pleted i (amount) standing out- Gua a r u a t n h t o e r e i d z e l d oans Gua lo ra a n ns teed A a d m di o ti u o n n t al N b u e m r - Amount (amount) (amount) s ( t a a m n o d u in n g t) 3 to date outstanding available to borrowers Date under guar- 1944 3,489 525,532 1,295 3,894 4,165 2,705 N b u e m r - Amount a T m o o t u a n l t g P u o te a r e r ti a d o n n - a o n u t t e m s e t e a a n n g t d s r i e n e g - 1 1 1 9 9 9 4 4 4 7 5 6 3 3 3 , , , 5 5 5 4 7 1 2 4 1 5 5 5 4 8 6 4 6 5 , , , 9 7 9 6 2 1 1 6 3 4,5 3 9 7 2 4 7 0 5 1 1, , 3 9 5 8 9 5 7 5 4 8 7 1 , , , 6 3 4 4 3 0 4 4 9 2 4 1 , , ,0 6 8 8 7 6 6 0 9 1948 3,607 615,653 335 995 1,643 1,990 1949 3,649 629,326 539 2,178 2,288 2,947 1950 1950 Oct. 31... 3 1,000 Nov. 30... 23 13,585 2,340 2,232 3,335 July 31... 3,680 639,158 4,362 2,479 1,729 2,753 Dec. 31... 62 31,326 8,017 6,265 8,299 Aug. 31... 3,684 644,464 6,985 2,333 2,481 3,273 Sept. 30. .. 3,690 646,276 8,030 2,293 2,509 3,224 1951 Oct. 31... 3,692 647,432 5,108 2,307 3,035 3,707 Jan. 31... 119 109,433 23,778 19,837 13,748 Nov. 30. .. 3,695 649,748 5,519 2,413 3,466 4,050 Feb. 28... 161 122,541 44,250 36,537 33,840 Dec. 30... 3,698 651,389 4,819 2,632 3,754 3,745 Mar. 31.. . 254 300,955 68,833 56,973 47,822 1951 Apr. 30... 328 421,267 126,080 106,053 185,001 May 31... 402 514,626 183,610 151,858 205,629 Jan. 31... 3,707 654,199 1,862 3,520 3,325 5,402 June 30... 484 654,893 252,100 209,465 '276,702 Feb. 28. .. 3,706 655,702 1,523 3,681 2,937 5,358 July 31... 568 828,584 325,299 267,715 349,905 Mar. 31. .. 3,710 660,525 3,980 3,988 2,824 5,262 Apr. 30... 3,717 664,473 4,925 4,845 2,595 5,331 May 31. .. 3,721 667,988 3,578 5,255 3,643 5,999 r Revised. June 30... 3,724 671,432 3,221 5,762 3,740 6,199 NOTE.—The difference between guaranteed loans authorized and July 31... 3,727 678,477 6,730 5,801 3,767 6,115 sum of loans outstanding and additional amounts available to borr r e o p w a e i r d s , u g n u d a e ra r n g te u e a s r a a n u t t e h e o r a iz g e re d e m bu e t n t n s ot o u c t o s m ta p n l d e i t n e g d , r a e n p d re s a e u n t t h s o r a i m za o ti u o n n t s s 1 Includes applications approved conditionally by the Federal Reexpired or withdrawn. ser 2 v I e n c B lu an d k es s i a n n d d u s u t n ri d a e l r lo c a o n n s s i p d a e s r t a t d io u n e b 3 y m a o p n p t l h i s c a o n r t. more, which are not included in industrial loans outstanding in weekly statement of condition of Federal Reserve Banks. 3 Not covered by Federal Reserve Bank commitment to purchase or discount. NOTE.—The difference between amount of applications approved and the sum of the following four columns represents repayments of advances, and applications for loans and commitments withdrawn or expired. 1148 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 r n 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 n r 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 July 1951 Second half of July 1951 Gross demand deposits: Total 99,423 22,553 5,704 37,985 33,182 98,751 21,876 5,663 37,993 33,218 Interbank 11,460 3,884 1,138 5,448 990 11,421 3,851 1,155 5,446 969 Other 87,963 18.669 4,566 32,536 32,192 87,330 18,025 4,508 32,547 32,250 Net demand deposits 2 86,765 20,650 5,129 32,688 28,299 86,724 20,235 5,111 32,922 28,456 Demand*deposits adjusted 3 76,500 77,250 Time deposits 4 30,057 1,907 1,122 11,904 15,124 30,106 1,891 1,114 11,929 15,173 Demand balances due from domestic banks... 5,744 37 116 1,819 3,773 5,780 34 113 1,850 3,783 Reserves with Federal Reserve Banks: Total 19,264 5,063 1,294 7,439 5,468 19,196 4,995 1,293 7,439 5,469 Required 18,490 5,070 1,298 7,252 4,869 18,458 4,970 1,293 7,300 4,894 Excess 774 Q -4 187 599 738 25 139 574 Borrowings at Federal Reserve Banks 199 70 13 75 188 71 80 37 1 Averages of daily closing figures for reserves and borrowings and of daily opening figures for other items, inasmuch as reserves required 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. MEMBER BANK RESERVES AND BORROWINGS DEPOSITS OF COUNTRY MEMBER BANKS IN LARGE AND [Averages of daily figures. In millions of dollars] SMALL CENTERS i [Averages of daily figures. In millions of dollars] Central reserve week en M di o n n g t h W , o e r dnesday m b A e e l m r l - city t)anks s c R e i r e t v y - e C ba t o r n u y k n s - a I n n d p o la v c e e r s p o o f p u 1 l 5 a , t 0 i 0 o 0 n I 1 n 5 , p 0 l 0 a 0 c e p s o o p f u l u at n i d o e n r banks * New Chi- banks York cago Demand Demand To 1 1 t 9 9 a 5 5 l 1 0 r — — es J J e u u r n l v y e es held: 1 1 9 6 , , 3 2 0 5 9 3 4 5 , ,2 34 3 6 0 1 1, , 3 1 0 1 0 4 6 7 , , 3 4 0 0 1 2 5 4 , , 3 4 7 9 7 2 d e e i b x n p a c t o n e e s r k p i - t t s de T p i o m s e its d e e i b x n p a c t o n e e s r k p i - t ts de T p i o m s e its July 19,229 5,028 1,294 7,439 5,469 July 18 19,318 5,009 1,299 7,461 ,549 1950 J A u u l g y . 25 1 1 19 9 , , 0 2 5 5 2 9 4 4, , 9 9 5 9 5 9 1 1, , 2 2 8 9 5 0 7 7 , , 4 4 6 4 1 3 , , 5 3 0 7 9 0 J M u a n y e 1 1 8 8 , , 6 9 8 1 9 4 9 9 , , 3 3 9 8 2 8 1 1 0 0 , , 8 8 3 8 9 0 5 5 , , 6 6 6 6 6 8 Aug. 8 19,201 4,943 L ,297 7,461 ,500 July 19,135 9,362 10,997 5,672 Aug. 15 19,228 4,913 1,298 7,496 5,521 Aug. 22 19,260 14,916 1,303 7,494 5,547 May 1951 20,670 9,315 11,375 5,661 Excess reserves: June 20,713 9,351 11,325 5,681 1950—July 746 14 -2 171 562 July 20,778 9,415 11,444 5,734 1951—June 834 106 7 219 501 July 756 9 -2 162 586 By district, July 1951 J J A A A u u u u u l l y y g g g . . . 2 1 1 5 8 8 5 1 8 6 7 7 7 0 5 5 7 9 6 8 6 4 9 -1 -2 2 2 1 1 0 8 6 -10 4 8 i 1 1 1 1 1 5 5 7 6 3 7 4 8 4 8 6 4 6 6 5 8 8 0 6 0 9 9 4 0 8 N P C B h l o e e i w s l v t a o e d Y l n a e o n lp r d k hia 3 2 1 1 , , , , 7 4 6 4 0 3 1 4 7 8 6 6 2, 9 8 8 2 2 2 4 8 7 5 1 3 1 1 , , 9 1 3 0 4 7 9 3 1 8 9 8 1, 9 0 2 8 7 0 0 0 7 5 2 7 Aug. 22 ?776 10 ' ' '![' 138 P629 Richmond 1,318 457 780 445 Borrowings at Federal Atlanta 1,935 501 598 192 Reserve Banks: Chicago 2,915 1,793 1,698 905 1950—July 123 45 11 42 24 St. Louis 857 382 905 268 1951— J J u u l n y e 1 1 7 9 0 4 2 7 5 1 3 7 7 7 3 7 6 3 9 9 Minneapolis 679 318 704 408 Kansas City 800 140 1,429 203 July 18 156 74 27 55 Dallas 1,640 232 1,320 65 July 25 147 64 67 16 San Francisco 1,427 715 456 256 Aug. 1 249 78 i' 127 43 A A A u u u g g g . . . 2 1 8 2 5 3 2 1 5 1 7 8 7 1 17 6 4 4 7 1 8 2 1 1 9 8 3 8 9 3 3 4 5 1 3 9 bee 1 n I n g c i l v u e d n e s p a er n m y is b s a i n on k s to in c o a u rr tl y y i t n h g e s s e a c m ti e o n r s e s o e f r v r e e s a e s r v c e o c u i n ti t e ry s t b h a a n t k h s. ave P Preliminary. 1 Weekly figures of excess reserves of all member banks and of country banks are estimates. Weekly figures of borrowings of all member 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. SEPTEMBER 1951 1149 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 Large denomination currency 2 End of year or in cir- Unasmonth cula- sorted tion1 Total Coin 3$1 $2 $5 $10 $20 Total $50 $100 $500 $1,000$5,000$10,000 1933 5,519 4,167 442 402 33 719 1,229 1,342 1,360 364 618 125 237 8 10 1934 5,536 4,292 452 423 32 771 1,288 1,326 1,254 337 577 112 216 5 7 10 1935 5,882 4,518 478 460 33 815 1,373 1,359 1,369 358 627 122 239 7 16 5 1936 6,543 5,021 517 499 35 906 1,563 1,501 1,530 399 707 135 265 7 18 8 1937 6,550 5,015 537 505 33 905 1,560 1,475 1,542 387 710 139 288 6 12 7 1938 6,856 5,147 550 524 34 946 1,611 1,481 1,714 409 770 160 327 17 32 5 1939 7,598 5,553 590 559 36 1,019 1,772 1,576 2,048 460 919 191 425 20 32 2 1940 8,732 6,247 648 610 39 1,129 2,021 1,800 2,489 538 1,112 227 523 30 60 4 1941 11,160 8,120 751 695 44 1,355 2,731 2,545 3,044 724 1,433 261 556 24 46 4 1942 15,410 11,576 880 801 55 1,693 4,051 4,096 3,837 1,019 1,910 287 586 9 25 3 1943 20,449 14,871 1,019 909 70 1,973 5,194 5,705 5,580 1,481 2,912 407 749 9 22* 2 1944 25,307 17,580 1,156 987 81 2,150 5,983 7,224 7,730 1,996 4,153 555 990 10 24 3 1945 28,515 20,683 1,274 1,039 73 2,313 6,782 9,201 7,834 2,327 4,220 454 801 7 24 2 1946 28,952 20,437 1,361 1,029 67 2,173 6,497 9,310 8,518 2,492 4,771 438 783 8 26 3 1947 28,868 20,020 1,404 1,048 65 2,110 6,275 9,119 8,850 2,548 5,070 428 782 5 17 3 1948 28,224 19,529 1,464 1.049 64 2,047 6,060 8,846 8,698 2,494 5,074 400 707 5 17 3 1949 27.600 19,025 1,484 1,066 62 2,004 5.897 8.512 8,578 2,435 5,056 382 689 4 11 3 1950—May... 27,090 18,730 1,490 1,033 60 1,963 5,851 8,333 8,361 2,380 4,949 380 639 4 9 1 June... 27,156 18,813 1,496 1,037 61 1,966 5,891 8,363 8,344 2,386 4,940 378 628 4 9 2 July... 27,010 18,696 1,498 1,029 60 1,946 5,836 8,328 8,316 2,374 4,934 375 620 4 9 2 August. 27,120 18,795 1,506 1,037 61 1,955 5,881 8,355 8,328 2,374 4,950 372 617 4 9 2 September... 27,161 18,834 1,515 1,054 61 1,964 5,884 8,357 8,329 2,369 4,964 370 613 4 9 2 October 27,228 18,901 1,527 1,072 61 1,978 5,874 8,388 8,329 2,368 4,987 367 595 4 9 2 November.. . 27,595 19,252 1,547 1,089 62 2,021 6,021 8,511 8,345 2,384 4,994 365 589 4 9 2 December. . . 27,741 19,305 1,554 1,113 64 2,049 5,998 8,529 8,438 2,422 5,043 368 588 4 12 2 1951—January 27,048 18,694 1,530 1,056 61 1,943 5,791 8,313 8,356 2,393 5,002 366 583 4 9 3 February 27,188 18,861 1,535 1,057 61 1,959 5,880 8,369 8,329 2,385 4,986 365 581 4 9 2 March. 27,119 18,845 1,542 1,059 61 1,953 5,881 8,348 8,275 2,369 4,955 362 576 4 8 1 April... 27,278 19,023 1,551 1,073 62 1,973 5,943 8,422 8,257 2,371 4,941 360 573 4 8 May... 27,519 19,260 1,568 1,087 63 1,995 6,024 8,523 8,259 2,382 4,938 357 570 4 8 1 June... 27,809 19,521 1,578 1,092 64 2,011 6,113 8,663 8,289 2,405 4,947 356 570 4 8 2 July 27,851 19,560 1,590 1,092 64 2,008 6,088 8,718 8,292 2,409 4,952 354 565 4 8 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 * Money Total out- held by standing, As security For Federal Ju 1 l 9 y 5 3 1 1, g a o s g l i d a lv in e a s r n t d Tr c e a 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 n e d Ju 1 l 9 y 5 3 1 1, Ju 1 n 9 e 5 3 1 0, Ju 1 l 9 y 5 0 31, certificates agents Gold 21,759 20,543 21 ,216 Gold certificates 20,543 17, 2,816 39 39 41 Federal Reserve notes 24,707 46 1,135 23,526 23,456 22,664 Treasury currency—total 4,666 3 2,337 40 340 4,286 4,314 4,305 Standard silver dollars 492 276 32 182 180 171 Silver bullion 2,061 2,061 Silver certificates and Treasury notes of 1890. . 2 2,337 276 2,060 2,093 2,135 Subsidiary silver coin 1,050 20 1,027 1,020 964 Minor coin 390 7 382 378 362 United States notes 347 30 314 318 316 Federal Reserve Bank notes 244 3 241 243 271 National Bank notes 82 1 81 81 86 Total—July 31, 1951 22,880 1,302 17,688 4,291 27,851 June 30, 1951 22,895 1,281 17,699 4,197 27,809 July 31, 1950 25,242 1,304 20,070 3,995 27,010 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 are shown in table above, totals by weeks in table on p. 1141, and seasonally adjusted figures in table on p. 1151. 2 Includes $156,039,431 held as reserve against United States notes and Treasury notes of 1890. 8 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. * 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. 6 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 a like amount of gold certificates or of gold certificates and such discounted or purchased paper as is eligible under the terms of the Federal Reserve Act, or of direct obligations of the United States. Federal Reserve Banks must maintain a reserve in gold certificates of at least 25 per cent, including the redemption fund 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. 1150 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 End 1 o 9 f 4 p 0 eri D od a : te f u o v n r a a 8 r s d i e , j a 7 a u t 3 s s i o o t 2 e 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 1 e s j r , u o i 1 s e n 3 t s a e 4 l l d ly End of month a D i n b t e c o a p e l r o - s s s ' - 1 Total d b C e t a o p i a n n r o s k y s h s i- G s U m e o t c v i . e e u e n s S r r t i n . - - r f e C u e s n t a e c d s r .« h v s, e 1941 11,160 +2,428 1 1 1 1 1 1 1 1 9 9 9 9 9 9 9 9 4 4 4 4 4 4 4 4 2 7 3 4 6 5 8 9 2 2 2 2 2 2 2 1 0 8 8 8 5 8 7 5 , , , , , , , , 9 4 5 2 3 8 6 4 5 4 1 2 0 6 0 1 2 9 5 4 7 8 0 0 + + + + 5 4 4 3 + - - , , , , 6 6 - 0 2 8 2 4 8 4 2 3 5 5 0 3 4 4 4 9 0 8 8 7 1 1 1 1 1 1 1 9 9 9 9 9 9 9 4 4 4 4 4 4 4 8 6 7 4 3 9 5 — — — — — — — D D D D D D D e e e e e e e c c c c c c c e e e e e e e m m m m m m m b b b b b b b e e e e e e e r r r r r r r . . . . . . . . 3 3 3 2 2 3 1 , , , , , , , 4 1 3 7 3 2 9 1 8 8 4 3 8 3 7 8 8 2 0 4 3 3 3 3 3 3 2 1 , , , , , , , 3 0 3 5 8 4 4 1 4 2 8 2 1 4 2 3 2 1 7 5 9 1 6 6 6 8 7 7 0 3 3 3 2 2 3 1 , , , , , , , 1 7 1 2 2 8 3 1 8 1 5 4 3 0 6 2 8 2 7 4 8 2 2 1 1 1 1 1 1 0 5 7 9 8 1 2 0 2 9 8 7 8 1950 27,741 +141 1950—February 3,177 3,301 7 3,107 186 March 3,168 3,293 8 3,107 178 Aver 1 ag 9 e 5 s 0 — of J u d l a y ily figures: 27,117 27,171 +9 A M p a r y il 3 3, , 1 1 2 5 5 1 3 3 , , 2 27 5 6 0 8 S 3 3 , ,0 0 9 6 2 8 1 17 7 5 6 August 27,009 27,145 -26 June 3,097 3,218 10 3,038 171 September 27,154 27,208 +63 July 3,061 3,181 9 3,027 145 October 27,233 27,233 +25 August 3,021 3,141 10 2,962 169 November 27,380 27,298 +65 September. . . 2,991 3,111 10 2,923 177 December 27,806 27,531 +233 October 2,967 3,088 10 2,903 175 November. , . 2,947 3,069 10 2,888 171 1951—January 27,304 27,222 -309 December 2,924 3,045 11 2,868 166 February 27,145 27,145 -77 J A A J M M u u u p a n l a g r y y r e i u c l h st 2 2 2 2 2 2 7 7 7 7 7 7 , , , , , , 8 3 9 5 1 1 5 2 5 4 7 7 9 4 1 8 9 1 2 2 2 2 2 2 8 7 7 7 7 7 , , , , , , 0 5 9 6 3 2 1 9 1 8 9 5 6 1 5 6 8 3 + + + + + + 1 1 2 1 1 1 7 1 2 7 4 0 0 8 9 6 5 8 1951— A F M M Ja e p a a n b r y r u i r c l u a h a ry ry 2 2 2 2 2 , , , , , 8 8 8 8 9 5 3 7 0 0 1 2 7 1 8 2 3 2 2 2 , , , , , 0 9 9 9 9 2 7 5 3 9 2 4 4 3 8 2 1 1 1 1 1 1 1 7 1 2 2 2 2 2 , , , , , 8 7 7 7 8 3 6 4 9 5 5 5 8 3 8 1 1 1 1 1 5 7 6 5 6 2 2 9 3 4 June P2,785 July v2 ,766 1 For end-of-year figures, represents change computed on absolute amounts in first column. p Preliminary. fig N ur O es T E o .— n F c o o r m d p i a s r c a u b s l s e i on b a o si f s s s e e a e s on B a U l L L ad E j T u IN st m fo e r n t S f e a p c t t e o m rs b e a r n d 1 9 fo 4 r 3 , b a p c p k . 8 1 O In u c t l s u t d a e n s d i w ng o rk p i r n in g c i c p a a s l h , r w ep it r h e se p n o t s e t d m a b s y t e c r e s r , ti 5 fi c p a e t r e s ce o n f t d r e e p s o e s r i v t e . fund 822-826. Because of an apparent change in the seasonal pattern and miscellaneous working funds with Treasurer of United States, acaround the year-end, adjustment factors have been revised somewhat crued interest on bond investments, and accounts due from late postfor dates affected, beginning with December 1942. masters. Back figures.—See Banking and Monetary Statistics, p. 519; for description, see p. 508 in the same publication. BANK DEBITS AND DEPOSIT TURNOVER [Debits in millions of dollars] Annual rate of Debits to demand Annual rate of Debits to total deposit accounts, except turnover of total deposit accounts, turnover of demand interbank accounts deposits, except except interbank deposits, except interinterbank and Government bank and Government Year or month Total, all New 140 Other New Other New Other New Other reporting York other reporting York reporting York leading York leading centers Cityi centers l centers City centers City 2 cities 2 City « cities J 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 e se ri r e ie s s 3 3 }l,050,021 417,475 527,336 105,210 18.9 10.0 { 3 4 7 0 4 7 , , 3 9 6 4 5 6 4 5 4 2 9 2 , , 4 9 1 4 4 4 2 2 5 5 . . 5 2 1 16 6 . . 5 9 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 1,231,053 452,897 648,976 129,179 24.1 12.4 447,150 639,772 28.2 18.7 19S0 1,403,752 513,970 742,458 147,324 26.6 13.4 508,166 731,511 31.4 20.3 1950—July 110,573 38,757 59,752 12,064 24.6 13.2 40,657 59,703 31.0 20.3 August 128,383 50,067 65,423 12,893 29.2 13.2 48,320 64,015 33.8 19.9 September 123,222 44,910 65,197 13,116 27.9 14.2 46,400 65,330 34.2 21.5 October 125,784 43,837 68,137 13,811 26.4 14.2 43,159 66,547 30.7 20.9 November 123,541 43,740 66,392 13,409 28.1 14.9 41,167 64,687 31.4 21.7 December 139,542 52,590 72,845 14,106 31.2 15.3 53,150 73,253 37.2 23.0 1951—January 138,402 48,207 75,017 15,178 27.9 15.2 47,561 73,226 32.9 22.0 February 114,061 39,067 62,370 12,624 26.1 14.3 38,916 62,239 30.7 21.5 March 144,012 53,171 75,941 14,900 29.0 14.9 53,142 75,897 35.5 22.5 April 128,447 45,477 69,421 13,549 26.5 14.6 44,312 68,157 32.5 22.3 May 130,700 45,375 71,197 14,129 26.2 13.8 42,272 68,378 30.0 21.3 Tune 135,027 48,588 72,110 14,329 27.9 14.0 49,398 72,179 34.4 22.2 July 124,422 43,224 67,532 13,665 26.0 14.1 41,673 64,826 31.1 20.9 1 National series for which bank debit figures are available beginning with 1919. 2 Weekly reporting member bank series. 8 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, 333 centers from December 1947 through December 1950, and for 342 centers beginning January 1951; 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. 1151 SEPTEMBER 1951 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CONSOLIDATED CONDITION STATEMENT 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 million3 of dollars] Assets Liabilities and Capital Total Bank credit assets, net- Total Date Treas- U.S. Government obligations liabil- Total C a a n p d ital Gold r c e u n r c - y Total Lo n a e n t s, m C e o r m cia - l Federal O se t c h u e - r ca a p n it d al, c d u e a r p r n o e d s n i c ts y c m o a u c is n - c ts . , Total and Reserve Other rities net net savings Banks banks 1929—June 29 4,037 2,019 58,642 41,082 5,741 5,499 216 26 11,819 64,698 55,776 8,922 1933—Tune 30 4,031 2,286 42,148 21,957 10,328 8,199 1,998 131 9,863 48,465 42,029 6,436 1939—Dec 30 17,644 2,963 54,564 22,157 23,105 19,417 2,484 1,204 9,302 75,171 68,359 6,812 1941—Dec 31 22,737 3,247 64,653 126,605 29,049 25,511 2,254 1,284 8,999 90,637 82,811 7,826 1945—T)ec 31 20,065 4,339 167,381 30,387 128,417 101,288 24,262 2,867 8,577 191,785 180.806 10,979 1946—Dec 31 20,529 4,562 1S8,366 35,765 113,110 86,558 23,350 3,202 9,491 183,457 171,657 11,800 1947—Tune 30 21,266 4,552 156,297 38,373 107,873 82,679 21,872 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 194g—June 30 23,532 4,565 1S7,958 45,299 101,451 76,774 21,366 3,311 11,208 186,055 172,857 13,200 Dec. 31 24,244 4,589 160,457 48,341 100,694 74,097 23,333 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 Dec 31 24,427 4,598 167,681 49,604 100,456 78,433 18,885 3,138 12,621 191,706 177,313 14,392 1950—June 30 24,231 4,607 164,348 51,999 98,709 77,320 18,331 3,058 13,640 193,186 178,568 14,618 1950—Aug. 30 . . .. 23,800 4,600 165,800 54,500 97,200 75,600 18,600 3,000 14,200 194,200 179,200 15,000 Sept. 27 23,500 4,600 166,800 56,300 96,000 73,800 19,400 2,900 14,500 194,900 179,900 14,900 Oct 25 23,300 4,600 167,700 57,500 95,800 73,600 19,200 2,900 14,400 195,600 180 100 15 500 Nov 29 23,000 4,600 168,700 59,100 95,200 72,700 19,600 2,900 14,500 196,400 181,000 15,300 Dec. 30 22,706 4,636 171,667 60,366 96,560 72,894 20,778 2,888 14,741 199,009 184,385 14,624 1951—Jan. 31* 22,400 4,600 170,500 60,600 95,200 70,800 21,500 2,900 14,700 197,500 182,500 15,100 Feb. 28P 22,100 4,600 17(1,700 61,500 94,500 69,800 21,900 2,900 14,800 197,500 182,600 14,800 Mar 28P . .. 21,900 4,600 17?,100 62,500 94,700 69,300 22,600 2,800 14,900 198,600 183,700 14,900 Apr. 25P 21,800 4,600 17?,100 62,600 94,600 68,900 22,900 2,800 15,000 198,600 183,600 15,000 May 30P 21,800 4,600 171,300 62,900 93,500 68,400 22,300 2,800 14,900 197,700 182,900 14,800 June 27P 21,800 4,700 17S,000 63,500 94,400 68,800 22,800 2,700 15,100 199,400 184,500 14,900 July 25P 21,800 4,700 173,100 63,400 94,500 68,700 23,100 2,700 15,300 199,600 184,600 15,000 Deposits and Currency U S. Government balances Deposits adjusted and currency Date F b o a re n i k gn At com- Time deposits* Total deposits, Treas- mercial At Curnet c u a r s y h s b a a a v n n in d k g s s R F B e e a d s n e e 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 e a o r n m c k ia s - l M s b a a v u n i t n k u g s a 4 s l S S P a y o v s s i t n e ta m g l s o b r u e a t n n s c i 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 42,029 50 264 852 35 40,828 14,411 21,656 10,849 9,621 1,186 4,761 1939—Dec 30 68,359 1,217 2,409 846 634 63,253 29,793 27,059 15,258 10,523 1,278 6,401 1941—Dec 31 82 811 1,498 2,215 1,895 867 76,336 38,992 27,729 15,884 10,532 1,313 9,615 1945—Dec 31 180,806 2,141 2.287 24,608 977 150,793 75,851 48.452 30.135 15,385 2,932 26,490 1946—Dec. 31 171,657 1,885 2,272 3,103 393 164,004 83,314 53,960 33,808 16,869 3,283 26,730 1947—June 30 169,234 1,657 1,314 1,367 756 164,140 82,186 55,655 34,835 17,428 3,392 26,299 Dec. 31 175,348 1,682 1,336 1,452 870 170,008 87,121 56,411 35,249 17,746 3,416 26,476 1948—June 30 172,857 1,727 1,327 2,180 1,928 165,695 82,697 57,360 35,788 18,194 3,378 25,638 Dec 31 176,121 2,103 1,325 2,451 1,123 169,119 85,520 57,520 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 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—june 30 178,568 2,555 1,298 3,801 950 169,964 85,040 59,739 36,719 19,923 3,097 25,185 1950—Aug 30 179,200 2,400 L.300 3,800 700 171,000 87,400 59,100 36,200 19,800 3,000 24,500 Sept. 27 179,900 2,300 L,300 3,600 1,100 171,600 88,000 59,000 36,200 19,900 3,000 24,500 Oct. 25 180,100 2,500 1,300 3,100 400 172,800 89,200 59,000 36,200 19,900 3,000 24,600 Nov 29 181,000 2,300 L,300 3,000 600 173,900 90,300 58,700 35,900 19,800 2,900 24,900 Dec 30 184,385 2,518 L,293 2,989 668 176,917 92,272 59,247 36,314 20,010 2,923 25,398 1951—jan 31P 182,500 2,400 1,300 2,800 800 175,200 91,600 59,000 36,100 20,000 2,900 24,600 Feb. 28P 182,600 2,400 1,300 4,200 500 174,200 90,600 59,000 36,100 20,000 2,900 24,600 Mar. 28P 183,700 2,400 1,300 6,400 1,100 172,500 89,000 59,100 36,200 20,100 2,800 24,400 Apr. 25* 183,600 2,500 1,300 5,800 700 173,300 89,500 59,200 36,300 20,200 2,800 24,600 May 30P 182,900 2,500 1,300 4,800 600 173,700 89,500 59,300 36,300 20,200 2,800 24,900 June 27P 184,500 2,500 1,300 6,200 400 174,200 89,500 59,800 36,600 20,400 2,800 25,000 July 25P 184,600 2,400 1,300 4,500 400 176,000 90,800 60,000 36,800 20,500 2,800 25,100 * Preliminary. 1 Treasury funds included are the gold account, Treasury currency account, and Exchange Stabilization Fund. * Demand deposits other than interbank and U. S. Government, less cash items reported as in process of collection. * Excludes interbank time deposits; United States Treasurer's time deposits, open account; and deposits of Postal Savings System in banks. * Prior to June 30, 1947, includes a relatively small amount of demand deposits. and in Capital accounts, and baa o g y g ati ud t asuy are netted against miscellaneous accounts instead of against U. S. Government deposits and Treasury cash. Total deposits and currency shown in the monthly Chart Book excludes "Foreign bank deposits, net" 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. 1152 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 * Total » b In a t n e k r ^ - a c c a c p o i u ta n l ts ba o n f ks De- Total ment secu- mand 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 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. 31 2 134,924 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—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—June 30 142,959 51,999 90,961 77,320 13,640 34,099 163,770 11,435 95,505 56,830 13,576 14,674 Dec. 30 148,021 60,386 87,635 72,894 14,741 41,086 175,296 14,039 104,744 56,513 13,837 14,650 1951—Feb. 28P 146,480 61,920 84,560 69,800 14,760 38,590 170,500 12,160 102,050 56,290 13,890 14,639 Mar. 28P 147,120 62,950 84,170 69,250 14,920 37,440 169,760 11,630 101,660 56,470 13,940 14,649 Apr. 25P 146,880 63,040 83,840 68,850 14,990 37,510 169,770 11,740 101,440 56,590 14,000 14,647 May 30P 146,680 63,340 83,340 68,410 14,930 37,020 168,810 11,350 100,740 56,720 14,050 14,644 Tune 27P 147,950 64,050 83,900 68,790 15,110 37,620 170,680 11,620 101,850 57,210 14,150 14,636 July 25P 147,760 63,750 84,010 68,740 15,270 37,860 170,990 12,280 101,240 57,470 14,190 14,637 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 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 » 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—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—June 30 121,767 44,796 76,972 65,751 11,221 33,268 143.827 11,435 95,485 36,907 11,387 14,144 Dec. 30 126,675 52,249 74,426 62,027 12,399 40,289 155,265 14,039 104,723 36,503 11,590 14,121 1951—Feb. 28P 125,010 53,540 71,470 59,060 12,410 37,870 150,440 12,160 102,030 36,250 11,630 14,110 Mar. 28P 125,740 54,420 71,320 58,770 12,550 36,560 149,650 11,630 101,640 36,380 11,660 14,120 Apr. 25P 125,390 54,350 71,040 58,470 12,570 36,660 149,600 11,740 101,420 36,440 11,730 14,117 May 30P 125,060 54,460 70,600 58,110 12,490 36,220 148,570 11,350 100,720 36,500 11,770 14,114 June 27P 126,230 55,040 71,190 58,560 12,630 36,780 150,280 11,620 101,830 36,830 11,860 14,107 July 25P 125,940 54,590 71,350 58,590 12,760 37,040 150,520 12,280 101,220 37,020 11,900 14,108 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 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 59,556 52,154 7,402 34,203 121,362 11,641 80,881 28,840 8,801 6,918 1949—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—June 30 102,745 37,658 65,087 55,759 9,328 29,380 122,707 10,850 82,232 29,625 9,523 6,885 Dec. 30 107,424 44,705 62,720 52,365 10,355 35,524 133,089 13,447 90,306 29,336 9,695 6,873 1951—Feb. 28P 105,655 45,873 59,782 49,415 10,367 33,508 128,660 11,565 87,927 29,168 9,733 6,870 Mar. 28P 106,366 46,618 59,748 49,264 10,484 32,336 128,046 11,129 87,697 29,220 9,750 6,871 Apr. 25? 106,000 46,481 59,519 49.038 10,481 32,396. 127,988 11,240 87,487 29,261 9,809 6,868 May 30P 105,650 46,554 59,096 48,693 10,403 31,990 126,953 10,866 86,772 29,315 9,846 6,865 June 27P 106,843 47,072 59,771 49,249 10,522 32,561 128,712 11,142 87,979 29,591 9,929 6,859 July 25P 106,502 46,658 59,844 49,209 10,635 32,607 128,605 11,774 87,105 29,726 9,955 6,856 All mutual savings banks: 1 1 9 9 4 3 1 9 — — D D eecc. . 3 3 0 1 1 10 0 , , 3 2 7 1 9 6 4 4 , , 9 9 0 2 1 7 5 5 , 4 2 7 8 8 9 3 3 ,7 1 0 0 4 1 2 1 ,7 1 7 8 4 8 8 7 1 9 8 3 1 1 0 0 , , 5 5 2 3 4 3 3 6 1 10 0 , 5 5 2 2 7 1 1 1, 2 3 4 0 1 9 5 5 5 4 1 8 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 1 16 16,853 1,784 541 1947—Dec. 31 » 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—Dec. 31. : 20,400 6,578 13,822 11,428 2,394 873 19,293 20 19,273 2 122 531 1950— D JUe n c e . 3 3 0 0 .. 2 2 1 1 , , 1 3 9 4 2 6 8 7 , 1 2 3 0 7 3 1 13 3 , 2 9 0 8 9 9 1 1 0 1 , 8 5 6 6 8 9 2 2 , , 3 4 4 2 2 0 8 7 3 9 1 7 2 1 0 9 , 0 9 3 4 1 3 2 2 0 2 2 1 0 9 , 0 9 1 2 0 3 2 2 2 1 4 8 7 9 5 52 3 9 0 1951—Feb. 28P. . 21,470 8,380 13 090 10,740 2,350 720 20,060 20 20 040 2 260 529 Mar. 28P 21,380 8,530 12,850 10,480 2,370 880 20,110 20 20,090 2,280 529 Apr. 25P . . 21,490 8,690 12 800 10,380 2,420 850 20,170 20 20,150 2 270 530 May 30P. . .. 21,620 8,880 12,740 10,300 2,440 800 20,240 20 20,220 2 280 530 June 27P. .... 21,720 9,010 12,710 10,230 2,480 840 20,400 20 20,380 2,290 529 July 25P 21,820 9,160 12,660 10,150 2,510 820 20,470 20 20,450 2,290 529 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. 1153 SEPTEMBER 1951 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 Deposits Investments Other Cla a s n s d o d f a b te ank Total Loans G U ov . e S rn . - Other is C s a e s ts h 1 Total b In an te k r - i a c c T a c o p o i t u t a a n l l ts N b u a o m n f k b s er Total o m bl e ig n a t - s ri e t c ie u s - m D a e n - d Time tions Central reserve city member banks: New York City: 1939—Dec. 30 9,339 3,296 6,043 4,772 1,272 6,703 14,509 4,238 9,533 736 1,592 36 1941—Dec. 31 12,896 4,072 8,823 7,265 1,559 6,637 17,932 4,207 12,917 807 1,648 36 1945—Dec. 31 26,143 7,334 18,809 17,574 1,235 6,439 30,121 4,657 24,227 ,236 2,120 37 1946—Dec. 31 20,834 6,368 14,465 13,308 1,158 6,238 24,723 4,246 19,028 ,449 2,205 37 1947—Dec. 31 20,393 7,179 13,214 11,972 1,242 7,261 25,216 4,464 19,307 ,445 2,259 37 1948—Dec. 31 18,759 8,048 10,712 9,649 1,063 7,758 24,024 4,213 18,131 ,680 2,306 35 1949—Dec. 31 19,583 7,550 12,033 10,746 1,287 6,985 23,983 4,192 18,139 ,651 2,312 25 1950—June 30 19,548 7,723 11,825 10,281 1,544 6,329 23,213 3,894 17,668 ,650 2,341 25 Dec. 30... 20,612 9,729 10,883 8,993 1,890 7,922 25,646 4,638 19,287 ,722 2,351 23 1951—Feb. 28P 20,093 10,098 9,995 8,109 1,886 7,344 24,399 4,154 18,603 ,642 2,371 23 Mar. 28P 20,594 10,307 10,287 8,326 1,961 7,272 24,799 4,054 19,002 ,743 2,354 23 Apr. 25? 20,451 10,025 10,426 8,517 1,909 7,292 24,749 4,178 18,899 ,672 2,376 23 May 30P 19,930 9,939 9,991 8,144 1,847 6,875 23,711 4,011 18,104 ,596 2,357 22 June 27P 20,716 10,226 10,490 8,602 1,888 7,313 24,856 4,099 19,110 ,647 2,388 22 July 25P 20,001 10,089 9,912 7,918 1,994 6,816 23,695 4,156 17,940 ,599 2,396 22 Chicago: 1939—Dec. 30. .. ,105 569 1,536 1,203 333 1,446 3,330 1,947 495 250 14 1941—Dec. 31. .. ,760 954 1,806 1,430 376 1,566 4,057 1,035 2,546 476 288 13 1945—Dec. 31. .. ,931 1,333 4,598 4,213 385 1,489 7,046 1,312 5,015 719 377 12 1946—Dec. 31. .. 4,765 1,499 3,266 2,912 355 1,545 5,905 1,153 3,922 829 404 14 1947—Dec. 31. .. 088 1,801 3,287 2,890 397 1,739 6,402 1,217 4,273 913 426 14 1948—Dec. 31. . . 799 1,783 3,016 2,633 383 1,932 6,293 1,064 4,227 ,001 444 13 1949—Dec. 31. .. 5,424 1,618 3,806 3,324 482 1,850 6,810 1,191 4,535 ,083 470 13 1950—June 30.. . 256 1,557 3,700 3,138 562 1,640 6,419 1,014 4,305 ,099 481 13 Dec. 30. . . 569 2,083 3,487 2,911 576 2,034 7,109 1,228 4,778 ,103 490 13 1951—Feb. 28P. . 5,364 2,136 3,228 2,666 562 2,054 6,893 1,080 4,724 ,089 489 13 Mar. 28P. . 5,461 2,163 3,298 2,743 555 1,888 6,667 1,059 4,528 ,080 490 13 Apr. 25P. . 5,386 2,125 3,261 2,692 569 1,929 6,814 1,051 4,668 ,095 492 13 May 30P. . 5,368 2,206 3,162 2,617 545 1,913 6,706 1,038 4,573 ,095 495 13 June 27P.. 5,551 2,282 269 2,716 553 1,929 6,936 1,074 4,747 ,115 499 13 July 25P. . 5,422 2,235 3,187 2,648 539 1,906 6,788 1,151 4,527 ,110 497 13 Reserve city member banks: 1939—Dec. 30 12,272 5,329 6,944 5,194 1,749 6,785 17,741 3,686 9,439 4,616 1,828 346 1941—Dec. 31 15,347 7,105 8,243 6,467 1,776 8,518 22,313 4,460 13,047 4,806 1,967 351 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 1 1 9 9 4 4 6 7 — — D D e e c c . . 3 3 1 1. . ;.. 3 3 5 6 , ,0 3 4 5 0 1 1 1 0 3 , , 8 4 2 4 5 9 2 22 4 , , 5 5 9 2 1 7 2 20 2 , , 1 2 9 5 6 0 2 2 , , 2 3 7 9 6 6 1 13 1 , , 0 6 6 5 6 4 4 4 4 6 , , 4 4 7 6 7 7 5 5 , , 6 5 4 7 9 0 2 2 9 8 , , 3 0 9 4 5 9 1 1 0 1 , ,4 8 2 5 3 8 2 2 , , 7 8 2 4 8 4 3 3 5 5 5 3 1948—Dec. 31 35,332 14,285 21,047 18,594 2,453 13,317 45,943 5,400 29,153 11,391 2,928 335 1949—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—June 30 38,697 14,868 23,829 20,510 3,319 11,639 47,187 5,069 30,306 11,812 3,268 336 Dec. 30. . 40,685 17,906 22,779 19,084 3.695 13,998 51,437 6,448 33,342 11,647 3,322 336 1951—Feb. 28P. 39,869 18,425 21,444 17,725 3,719 13,275 49,536 5,369 32,562 11,605 3,336 336 Mar. 28P. 39,735 18,543 21,192 17,479 3,713 12,672 48,933 5,063 32,380 11,490 3,326 325 Apr. 25P. 39,630 18,614 21,016 17,287 3,729 12,606 48,785 5,079 32,165 11,541 3,339 325 J M un ay e 2 3 7 0 P P. . 3 4 9 0 , , 7 0 0 5 9 3 1 1 8 8 , , 6 5 7 9 2 9 2 2 1 1 , , 3 1 8 1 1 0 1 1 7 7 , , 6 3 2 8 1 5 3 3 , , 7 7 2 6 5 0 1 1 2 2 , , 7 6 5 1 2 8 4 4 8 9, , 2 7 9 3 5 2 4 5 , ,0 9 6 23 5 3 3 2 2 , , 4 1 5 5 6 8 1 1 1 1, , 6 7 5 7 1 4 3 3 , , 4 3 2 7 0 9 3 32 2 5 4 July 25P. 40,434 18,517 21,917 18,174 3,743 12,810 49,807 5,493 32,467 11,847 3,429 323 Country member 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. 12,518 5,890 6,628 4,377 2,250 6,402 17,415 822 10,335 6,258 1,982 6,219 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 26,125 22,857 3,268 10,778 44,443 1,073 28,810 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—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—June 30. 39,245 13,510 25,734 21,830 3,904 9,773 45,888 871 29,953 15,064 3,433 6,511 Dec. 30. 40,558 14,988 25,570 21,377 4,193 11,571 48,897 1,133 32,899 14,865 3,532 6,501 1951—Feb. 28P 40,329 15,214 25,115 20,915 4,200 10,835 47,832 962 32,038 14,832 3,537 6,498 Mar. 28P 40,576 15,605 24,971 20,716 4,255 10,504 47,647 953 31,787 14,907 3,580 6,510 Apr. 25P 40,533 15,717 24,816 20,542 4,274 10,569 47,640 932 31,755 14,953 3,602 6,507 May 30P 40,643 15,810 24,833 20,547 4,286 10,584 47,804 894 31,937 14,973 3,615 6,505 June 27P 40,523 15,892 24,631 20,310 4.321 10,567 47,625 904 31,666 15,055 3,622 6,500 July 25P 40,645 15,817 24,828 20,469 4,359 11,075 48,315 974 32,171 15,170 3,633 6,498 8 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. 1154 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—Continutd [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 r . n- Other assets l Total » b In a t n e k r * - a c c a c p o i u ta n l ts ba o n f ks Total o m bl e ig n a t - s ri e t c ie u s - m D a e n - d Time 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 (3,844 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 f5,671 13,297 1947—Dec. 31 114,274 37,583 76,691 67,941 8,750 36,926 141,851 12,670 94,300 34,882 c). 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 15R 13 413 1949—Dec. 31 118,278 42,485 75,793 65,820 9,974 35,207 143,138 12,368 94,914 35,856 If),645 13,429 1950—June 30 119,808 44,304 75,504 64,546 10,957 32,865 141,798 11,066 94,298 36,433 111,061 13,435 Dec. 30 124,822 51,723 73,099 60,986 12,113 39,821 153,288 13,744 103,499 36,045 11L ,263 13 432 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 $ 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 tt,644 5,017 1947—Dec. 31 65,280 21,428 43,852 38,674 5,178 22,024 82,023 8,410 54,335 19,278 15,409 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—Dec. 31 67,943 23,853 44,090 38,161 5,930 20,995 83,113 8,278 55,034 19,801 c5,920 4,975 1950—June 30 68,723 24,590 44,132 37,548 6,584 19,914 82,430 7,362 54,964 20,104 (3,180 4,971 Dec. 30. 72,090 29,184 42,906 35,587 7,320 23,763 89,281 9,133 60,251 19,897 (3,313 4,958 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 rI 945 1 867 1947—Dec. 31 32,566 11,200 21,365 19,240 2,125 10,822 40,505 3,993 27,449 9,062 '$,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—Dec. 31. 33,585 12,378 21,207 18,722 2,484 10,322 40,772 3,819 27,594 9,359 I 254 1 917 1950—June 30 34,023 13,068 20,955 18,211 2,744 9,466 40,277 3,488 27,268 9,522 $.343 1,914 Dec 30 35,334 15,521 19,813 16,778 3,035 11,762 43,808 4,315 30,055 9,438 5,381 1,915 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 L 083 1947—Dec. 31. ... 16,444 4,958 11,486 10,039 1,448 4,083 19,340 266 12,515 6,558 1,271 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_Dec. 31 16,766 6,258 10,508 8,947 t ,561 3,892 19,269 272 12,285 6,712 1,473 6,540 1950—June 30. ... 17,079 6,650 10,429 8,799 1,630 3,487 19,108 217 12,066 6,825 1,539 6,553 Dec. 30 17,414 7,023 10,391 8,632 1.759 4,299 20,216 297 13,194 6,726 1,570 6,562 Nonlnsured 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 1,693 200 514 2,452 181 1,905 365 279 714 1947—Dec. 31 2 2,009 474 1,535 1,280 255 576 2,251 363 1,411 478 325 783 1948—Dec 31 2,013 520 1,493 1,234 259 509 2,201 368 1,353 479 322 758 1949—Dec. 31. 1,919 481 1,438 1,185 253 442 2,036 341 1,223 472 321 727 1950—June 30 1,959 491 1,468 1,204 263 403 2,029 369 1,186 474 326 709 Dec 30 1,853 527 1,327 1,040 286 468 1,976 294 1,224 458 327 689 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 1,362 7,130 1947—Dec. 31 2 18,454 5,432 13,021 11,318 1,703 4,659 21,591 629 13,926 7,036 1,596 7,261 1948—Dec. 31 18,698 6,431 12,267 10,479 1,788 4,396 21,497 628 13,772 7,097 1,680 7,256 1949—Dec 31 18,686 6,739 11,947 10,132 1,814 4,334 21,305 613 13,508 7,184 1,794 7,267 1950—June 30 19,038 7,141 11,896 10,003 1,893 3,890 21,137 586 13,253 7,299 1,865 7,262 Dec 30 19,267 7,550 11,718 9,672 2,046 4,767 22,193 591 14,417 7,184 1,897 7,251 Insured mutual savings banks: 1941—Dec 31 1 693 642 1 050 629 421 151 1,789 1,789 164 52 1945 -r\er 31 10 846 3 081 7 765 7 160 606 429 10 363 12 10,351 I 034 192 1947—Dec. 31 12,683 3,560 9,123 8,165 958 675 12,207 1 14 12,192 1,252 194 1948—Dec. 31 13,312 4,109 9,202 7,795 1,407 684 12,772 1 14 12,757 1,334 193 1949 Dec 31 14 209 4 814 9 394 7 832 1 562 682 13,592 16 13,575 1,420 192 1950—Tune 30 14 827 5 288 9 539 7,945 1 594 659 14,128 18 14,109 1,467 192 Dec 30 15,101 6,086 9,015 7,487 1,528 617 14,320 19 14,301 1,513 194 Noninsured mutual savings banks: 1941—Dec 31 8 687 4 259 4 428 3 075 1 353 642 8,744 6 8,738 1,077 496 1945—Dec. 31 5,361 1,198 4,163 3,522 641 180 5,022 2 5,020 558 350 1947—Dec. 31 2 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—Dec. 31 6,192 1,764 4,428 3,596 832 191 5,702 3 5,699 702 339 1950—June 30 6,365 1,915 4,450 3,625 826 172 5,815 2 5,813 722 338 Dec. 30 6,245 2,050 4,194 3,380 814 180 5,711 3 5,708 734 335 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. SEPTEMBER 1951 1155 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] Loans1 Investments Com- p L u o rc a h n a s s f i o n r g U. S. Government obligations Obli- Total mer- or carrying ga- Class of bank loans cial, securities Direct tions cal a l n d d ate i m n a v e n e n d s t t s - Total1 o e i k p p l i n u n e e a g d t - n - - - A c tu g u a r r l l i - - - b d e r T e o r o a s k l - - o T e t r h o s - l R t o e a a e s t n a - e l s s o u C a m o n n e s - r 2 O lo t a h n e s r 2 Total Total Bills C o d c e f e a e r d t b t i e i - n t f s - i - - Notes Bonds G t a e u n e a - d r- S p d s a t i o u i o c a n v l a f b t d i i e l - t - s - O s ri t e t h c i e u e r s per ers ness sions All insured commercial b 1X 1 a 9. 9 n 7~4 4 k 1X 5 s — : XD D —'V e e«V c c«* . 3 3 *-*1 1 X . • 1 4 2 9 1 f , 2 8 9 0 0 9 2 2 1 5 , , 2 7 5 6 9 5 9 9 , , 2 4 1 6 4 1 1 1 , , 4 3 5 1 0 43,1 6 6 1 4 4 3,6 6 0 62 6 4 4, , 6 7 7 7 7 3 1,3 4 5 , 1 ' 4 2 5 ,191 9 2 6 8 , 0 0 4 3 3 12 8 1 8 , ,9 0 1 4 2 6 2,4 9 5 88 519,071 1 3 6 , , 1 0 5 4 9 5 5 1 1 2 , , 3 79 2 7 1 4,10 2 2 2 3 3 , , 6 8 5 7 1 3 3 3 , , 3 2 3 5 3 8 1947—Dec. 31. 114,274 37,583 18,0121,610 823 1,190 9,2663,8452,837 76,691 67,941 2,124 7,552 5,918 52,334 145,129 3,621 1948—Dec. 31. 112,286 41,968 18,7612,7751,336 939 10,6664,9072,992 70,318 61,388 2,82110,065 3,394 45,100 85,509 3,420 1949—Dec. 31. 118,278 42,485 16,9352,9631,749 855 11,4056,0023,124 75,793 65,820 3,692 12,479 5,810 43,833 66,400 3,574 1950—June 30. 119,808 44,304 16,8142,8191,856 912 12,2706,8873,335 75,504 64,546 3,847 6,102 11,591 43,000 87,237 3,721 Dec. 30. 124,822 51,723 21,7762,8231,789 1,036 13,3897,6283,955 73,099 60,986 4,118 1,932 16,756 38,168 11 7,933 4,179 Member banks, total' 43,521 18 021 8,671 972 594 598 3,494 3,692 25,500 19,539 971 3,007 11,729 3,832 3 0902 871 11 X 99 7T44 1 15 — XDD -'V ee-V cc-• . 3 \J3 X 11 . « 107,183 22,775 8,949 855 3,133 3,378 3,4551,027 1,977 84,408 78,338 2,27516,985 14,271 44,792 163',254 2,815 1947—Dec. 31. 97,846 32,628 16,9621,046 811 1,065 7,1303,0642,550 65,218 57,914 1,987 5,816 4,815 45,286 104,199 3,105 1948—Dec. 31. 95,616 36,060 17,6311,800 1,324 834 8,2443,9332,658 59,556 52,154 2,588 7,999 2,800 38,761 54,480 2,922 1949—Dec. 31. 101.528 36,230 15,8571,945 1,737 758 8,8344,7762,809 65,297 56,883 3,38910,409 5,085 37,996 45,274 3,140 1950—June 30. 102,745 37,658 15,7081,770 1,840 807 9,5475,5053,001 65,087 55,759 3,539 4,821 9,990 37,404 56,040 3,289 Dec. 30. 107,424 44,705 20,5211,808 1,770 927 10,5226,1673,585 62,719 52,365 3,665 1,468 14,054 33,170 86,640 3,714 1951—June 30. 106,563 46,866 22,1611,919 1,601 882 10,9756,1743,783 59,698 49,108 3,485 2,524 12,31330,778 76,978 3,611 New York City:3 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 2,453 1,172 80 76 509 18,809 17,574 477 3,433 3,325 10,337 1 606 629 1947—Dec. 31. 20,393 7,179 5,361 545 267 111 240 654 13,215 11,972 1,002 640 558 9,771 638 604 1948—Dec. 31. 18,759 8,048 5,642 3 1,102 225 224 313 636 10,712 9,649 589 1,183 365 7,512 563 500 1949—Dec. 31. 19,583 7,550 4,792 1,410 219 256 377 621 12,033 10,746 720 1,785 835 7,405 752 535 1950—June 30. 19,548 7,723 4.656 1,497 242 339 426 686 11,825 10,281 900 458 1,594 7,328 959 585 Dec. 30. 20,612 9,729 6,328 1,421 285 442 540 850 10,883 8,993 824 250 1,711 6,206 2 1,123 767 1951—June 30. 20,604 10,234 6,845 1,287 273 502 539 930 10,370 8,460 1,034 354 1,565 5,506 2 1,176 733 Chicago:* 1941—Dec. 31. 2,760 954 732 6 48 52 22 96 1,806 1,430 256 153 903 119 182 193 1945—Dec. 31. 5,931 1,333 760 2 211 233 36 26 65 4,598 4,213 133 1,467 749 1,864 181 204 1947—Dec. 31. 5,088 1,801 1,418 3 73 87 46 91 84 3,287 2,890 132 235 248 2,274 213 185 1948—Dec. 31! 4,799 1,783 1,412 4 71 63 51 115 88 3,016 2,633 183 275 217 1,958 210 174 1949—Dec 31 5,424 1,618 1,211 7 109 56 51 115 91 3,806 3,324 331 690 358 1,945 290 192 1 X7 9 i 5 .^ 0 — X J -' u V- n ^. e * \ 3 J X 0 .a 5,256 1,557 1,116 24 109 64 54 121 95 3,699 3,138 352 276 555 1,954 340 221 Dec. 30. 5,569 2,083 1,567 9 110 69 65 147 147 3,487 2,911 232 131 700 1,847 335 242 1951—June 30. 5,520 2,215 1,717 7 113 64 70 131 150 3,305 2,742 209 150 653 1,729 347 216 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 2481,173 956 820 1945—Dec. 3l". 40,108 8,514 3,661 205 427 1,503 1,459 433 826 31,594 29,552 1,034 6,982 5,653 15,878 1,126 916 1947—Dec. 31. 36,040 13,449 7,088 225 170 484 3,147 1,256 1,079 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 3,5031,609 1,118 21,047 18,594 1,056 3,201 1,090 13,247 11,421 1,032 1949—Dec. 31. 38,301 14,370 6,704 457 183 309 3,7421,965 1,212 23,931 20,951 1,189 4,180 2,124 13,457 1,727 1,254 1950—June 30. 38.697 14.868 6,596 367 201 324 4,0292,2911,274 23,829 20,510 1,179 1,954 4,005 13,372 1,988 1,331 Dec. 30. 40,685 17,906 8,646 392 207 386 4,4232,5671,534 22,779 19,084 1,218 499 5,536 11,830 2,184 1,511 1951—June 30. 39,991 18,558 9,254 425 164 362 4,5582,4931,559 21,432 17,659 1,177 1,069 4,665 10,746 12,318 1,456 Country banks: 1941—Dec. 31 12,518 5,890 1,676 659 20 183 1,823 1 c 30 6,628 4,377 110 481 2,926 861 1 2221,028 1945—Dec. 31. 35,002 5,596 1,484 648 42 471 1,881 492^ 578 29,407 26,999 630 5,102 4,544 16,713 9 1,342 1,067 1947—Dec. 31. 36,324 10,199 3,096 818 23 227 3,8271,476 732 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 4,467 1,895 817 24,781 21,278 760 3,340 1,128 16,046 42,286 1,217 1949—Dec. 31. 38,219 12,692 3,150 1,480 36 173 4,7842,320 884 25,527 21,862 1,148 3,753 1,768 15,189 42,505 1,160 1950—June 30. 39,245 13,510 3,3391,379 33 177 5,1252,666 946 25,734 21,830 1,107 2,133 3,835 14,750 52,753 1,151 Dec. 30. 40,558 14,988 3,9801,407 33 187 5,5912,913 1,054 25,570 21,377 1,390 588 6,107 13,287 c 2,998 1,194 1951—June 30. 40,448 15,858 4,345 1,487 37 183 5,8463,010 1,145 24,590 20,247 1,065 951 5,430 12,797 43,137 1,206 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 1,224 323 214 11,647 10,584 180 2,087 1,774 6,538 6 619 443 1947—Dec. 31. 16,444 4,958 1,049 563 13 125 2,139 781 287 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 2,426 975 334 10,774 9,246 234 2,066 594 6,349 1,030 498 1949—Dec. 31. 16,766 6,258 1,078 1,018 12 97 2,575 1,225 315 10,508 8,947 303 2,071 725 5,846 2 1,127 434 1950—June 30. 17,079 6,650 1,106 1,049 16 105 2,727 1,382 335 10,429 8,799 308 1,281 1,601 5,606 1 1,198 432 Dec. 30. 17,414 7.023 1,255 1,015 18 109 2,872 1,461 370 10,391 8,632 453 465 2,702 5,008 3 1,294 465 * 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. For other footnotes see opposite page. 1156 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 o n d f d a b te arik " s B s e w e R R e d a r i r e e n v e t v - - h r k e 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 a o i c s l t - k - e t h i s s c 4 j m p u D o a d s a e t d e s n e - - i - t d d s 6 m D e ][ s o d n t - e i t c e p 4 r o b s a i F e t n i s o g k r n - U m G er . o e n n S v - t - . p v s S o i u a t l s b a i n i t o t d d i e c n i s - a s l c C h c o e f a e e e i t f n e c c f r r i d . d t k s - i ' s - , p a v n s a p t I i h d i r n o d o t i d r n p u c n a i e o s a s - - , r l r s - - I b n a t n e k r- P U m G S e a o r a . o n e s n v S v n d t - - a - t . l v s S p i a u i o s t c n b a i l a o i d t d l t e n - i s - s p a v n s a p i t I 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 r s - - , r B i o n o w g r s - - c C o a t a u c a p - l n i t - s ings 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 1,24823,740 5 098 2,585 72,593 70 103 496 29,277 215 8,671 1947—Dec. 31.. 17,796 2,145 9 736 85 751 11,236 L.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 84 211 10,344 L.488 2,323 7 182 2,113 81 682 69 117 1,080 34,244 54 10,158 1949—Dec. 31.. 16,428 1,984 9 466 84 576 10,885 1,315 3,050 7 419 2,338 82 106 169 182 1,232 34,442 14 10,645 1950—June 30.. 15,863 1,801 8 358 83 916 9,577 1,281 3,590 7 924 2,145 80 639 209 188 1,321 34,925 36 11,061 Dec. 30.. 17,458 2,145 10 463 91 099 11,955 1,442 2,788 7 892 2,898 89 922 347 189 1,331 34,525 82 11,263 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 1,243 22,179 4 240 2,450 62 950 64 99 399 23 712 208 7,589 1947—Dec. 31.. 17,797 L.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 L.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—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—June 30.. 15,864 1,358 5 478 72,263 9,368 1,278 3,340 6 428 2,001 70 463 204 182 1,115 28 328 30 9,523 Dec. 30.. 17,459 1,643 6 868 78,370 11,669 1,437 2.523 6 400 2,724 78 659 341 183 1.121 28 032 79 9,695 1951—June 30. . 18,946 1,403 5 567 75,657 9,659 1,327 5,811 6 713 2,093 74 061 361 206 1,243 28 263 55 9,987 New York City:« 1941—Dec. 31. . 5,105 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 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 1 19 9 4 5 9 0 — — D ju e n c e > 3 30 1 . . . . 4 4 , , 4 2 6 3 2 5 11 9 2 2 6 3 8 8 1 1 5 5 , , 1 0 8 5 2 3 2 2 , , 9 69 9 2 6 1 1 , , 0 0 8 5 4 1 6 6 4 8 0 4 2 1 7 9 9 6 8 8 9 0 5 9 1 1 6 5 4 8 0 9 8 6 1 1 1 5 3 1 3 3 8 7 2 1 4 9 1 1 5 5 9 9 0 4 2 2 , , 3 3 1 4 2 1 Dec. 30.. 4,693 118 78 15,898 3,207 1,162 451 258 1,087 17 490 268 37 37 1 647 70 2,351 1951—June 30. . 5,053 96 48 15,368 2,744 1,104 1,808 280 823 16 381 259 39 22 1 605 2,398 Chicago:3 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 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_Dec. 31. . 1,183 27 159 3,797 1,151 40 258 286 60 3 932 4 10 1 069 470 1950—June 30 1,080 26 114 3,676 977 37 211 325 53 3 716 4 9 1 086 482 Dec. 30.. 1,216 30 133 3,954 1,177 48 174 284 70 4 250 3 3 10 1 089 490 1951—June 30. . 1,282 27 130 3,818 1,006 34 484 316 51 3 905 3 10 1 112 "io 501 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 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_Dec. 31. . 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—June 30. . 6,206 428 1,747 25,655 4,848 181 1,408 2,579 590 25,729 40 65 653 11 093 14 3,268 Dec. 30.. 6,806 519 2,206 27,938 6,174 217 976 2,575 852 28.938 57 60 631 10 956 3,322 1951—June 30. . 7,438 446 1,808 27,067 4,996 178 2,272 2,713 592 27,214 90 68 731 11 020 ' ' 8 3,431 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 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 3,123 1949—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—June 30.. 4,343 813 3,579 27,879 850 9 1,036 3,246 549 25,122 12 75 434 14,555 15 3,433 Dec. 30.. 4,745 976 4,450 30,581 1,111 10 922 3,282 715 27,980 12 82 443 14,339 9 3,532 1951—June 30. . 5,172 834 3,581 29,404 913 11 1,248 3,404 626 26,562 12 96 480 14,526 36 3,658 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 «j 1,560 858 135 9,643 6 4 97 5,579 1,083 1947—Dec. 31 473 3,466 12,223 258 4 149 1,188 158 11,019 4 6 132 6,420 j 1,271 1948—Dec. 31 453 3,273 12,059 246 8 201 1,332 151 10,736 6 6 153 6,459 8 1,358 1949—Dec. 31 463 3,273 11,918 261 6 213 1,402 153 10,517 c 6 182 6,524 1,473 1950—June 30 442 2 880 11,653 209 250 1,496 144 .10,176 E 6 206 6,613 *• 1,539 Dec. 30 503 3,596 12.729 286 265 1,492 174 11,262 t 6 210 6,510 1,570 3 2 "Consumer loans" exclude, and "Other loans" include, single-payment loans of $3,000 and over, which prior to BULLETIN for May 1951 had been included in consumer loans. The amounts of these loans prior to June 30, 1949, the first call date on which they were reported separately, have been estimated (see BULLETIN for November 1950, p. 1465). 8 Central reserve city banks. 4 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. 6 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. 1157 SEPTEMBER 1951 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 mer- Date or month in lo a v n a e n d s s t- Total i i t c n r i i d a a u l l , , s- a T n o d b d r e o a k l e e r r s s To others e R st e a a t l e Lo to ans Other Total C tif e i r - - O se th c e u r ments and loans banks loans cates rities t a c u g u r r l a i - - l G U t l i o i o o . g b n v a S - - s t . . O c t s u t i e h e r - s i e - r G l U t o i i o g o . b S v a n - - . t s .O c t s u t i e h e r - s i e - r Total Bills o d n e f e e d b i s - n t s - - Notes Bonds2 Total— Leading Cities 1950—juiy 67,785 25,817 13,772 635 1,115 151 498 4,759 291 4,98541,968 36 087 2,362 2,228 7,03224,4655,881 1951—May 69,589 32,584 19,152 245 1,097 123 607 5,452 430 5,93437,005 30,485 1,764 8,124 20,5976,520 June 69,900 32,579 19,128 254 1,032 126 603 5,516 452 5,92437,321 30,781 2,375 792 7,690 19,9246,540 July 70,142 32,673 19,067 420 1,021 128 579 5,544 479 5,89537,469 30 818 2,405 1,541 7,383 19,4896,651 June 6. .. 69,037 32,332 18,992 2141,048 124 630 5,489 364 5,92636,705 30,207 1,806 8,02420,3776,498 June 13... 69,492 32,429 19,085 1911,020 125 597 5,521 438 5,90937,063 30,555 2,147 8,03820,3706,508 June 20... 70,434 32,677 19,216 2351,036 125 597 5,524 484 5,91637,757 31 186 2,800 i,582 7,332 19,4726,571 June 27. .. 70,635 32,877 19,220 3761,023 129 587 5,530 523 5,94737,758 31 176 2,745 l,585 7,36819,4786,582 July 3. . .70,268 32,766 19,153 4191,091 127 584 5,534 392 5,92637,502 30 886 2,457 l,573 7,346 19,5106,616 July 11... 70,099 32,746 19,120 3981,017 126 579 5,539 528 5,89937,353 30 697 2,338 l 553 7,304 19,5026,656 July 18... 70,085 32,671 19,035 406 991 125 578 5,546 563 5,88737,414 30 739 2,325 l,539 7,38019,4956,675 July 25... 70,114 32,509 18,958 455 986 135 576 5,555 435 5,86937,605 30 949 2,500 l 499 7,503 19,4476,656 Aug. 1... 70,100 32,487 19,124 3491,041 127 573 5,545 324 5,86537,613 30 997 2,648 2 224 6,683 19,4426,616 Aug. 8. . .70,028 32,480 19,170 239 981 129 565 5,555 418 5,88237,548 30 920 2,592 2 299 6,615 19,4146,628 Aug. 15... 70,305 32,760 19,379 205 950 129 564 5,561 542 5,89137,545 30 949 2,670 2 252 6,603 19,4246,596 Aug. 22... 70,331 32,767 19,503 209 905 131 562 5,571 462 5,88737,564 30 983 2,716 2 246 6,592 19,4296,581 Aug. 29. . .70,488 32,916 19,502 268 902 128 570 5,584 518 5,90637,572 30 930 2,593 2 239 6,612 19,4866,642 New York City 1950—July 19,340 7,884 4,770 572 875 29 202 353 189 1,02011,456 9 844 651 325 1,652 7,216 1,612 1951—May 19,865 9,944 6,727 185 837 24 257 466 256 1,333 9,921 8 083 493 1,682 5,908 1,838 June 20,098 10,064 6,743 212 795 24 255 486 348 1,341 10,034 8 173 878 174 1,542 5,579 1,861 July 20,020 10,149 6,791 357 794 26 233 493 279 1,317 9,871 7 916 730 310 1,549 5,327 1,955 June 6 19,605 9,942 6,660 183 808 24 284 482 305 1,336 9,663 7 826 463 1,602 5,761 1,837 June 13. .. 19,892 9,970 6,695 154 783 24 250 491 372 1,341 9,922 8 067 774 1,549 5,744 1,855 June 20. .. 20,395 10,163 6,800 200 806 24 248 487 404 1,334 10,232 8 358 1,124 345 1,489 5,400 1,874 June 27... 20,500 10,182 6,818 311 784 24 239 484 312 1,35110,318 8 442 1,151 350 1,528 5,413 1,876 July 3. .. 20,326 10,256 6,832 379 851 24 237 490 259 1,325 10,070 8 174 923 328 1,527 5,396 1,896 July 11. .. 20,074 10,174 6,813 335 793 26 234 491 307 1,316 9,900 7 935 756 319 1,516 5,344 1,965 July 18... 19,886 10,124 6,778 338 766 24 232 494 317 1,316 9,762 7 781 613 308 1,552 5,308 1,981 July 25. . .19,793 10,041 6,742 376 764 31 231 497 232 1,309 9,752 7 772 626 283 1,602 5,261 1,980 Aug. 1. . .19,828 10,010 6,840 286 803 28 229 487 168 1,310 9,818 7 857 783 398 1,430 5,246 1,961 Aug. 8. . .19,606 9,957 6,829 199 756 28 224 496 251 1,315 9,649 7 687 644 370 1,434 5,239 1,962 Aug. 15. . .19,650 10,069 6,928 168 734 29 222 493 318 1,318 9,581 7 645 655 346 1,428 5,216 1,936 Aug. 22... 19,594 10,014 6,975 167 701 29 224 494 251 1,315 9,580 7 655 682 336 1,427 5,210 1,925 Aug. 29... 19,831 10,131 6,968 216 694 29 225 506 313 1,322 9,700 7 723 655 339 1,445 5,284 1,977 Outside New York City 1950—July. 48,445 17,933 9,002 63 240 122 296 4,406 102 3,96530,512 26,243 1,711 1 903 5,380 17,2494,269 1951—May 49,724 22,640 12,425 60 260 99 350 4,986 174 4,60127,084 22 402 ,271 6,442 14,6894,682 June 49,802 22,515 12,385 42 237 102 348 5,030 104 4,58327,287 22,608 ,497 618 6,148 14,3454,679 July. 50,122 22,524 12,276 63 227 102 346 5,051 200 4,57827,598 22 902 ,675 1 231 5,834 14,1624,696 June 6. . .49,432 22,390 12,332 31 240 100 346 5,007 59 4,59027,042 22 381 ,343 6,422 14,6164,661 June 13... 49,600 22,459 12,390 37 237 101 347 5,030 66 4,56827,141 22 488 ,373 6,489 14,6264,653 June 20... 50,039 22,514 12,416 35 230 101 349 5,037 80 4,58227,525 22 828 ,676 1 237 5,843 14,0724,697 June 27... 50,135 22,695 12,402 65 239 105 348 5,046 211 4,59627,440 22 734 '.,594 1,235 5,840 14,0654,706 July 3... 49,942 22,510 12,321 40 240 103 347 5,044 133 4,60127,432 22,712 1,534 1 245 5,819 14,1144,720 July 11... 50,025 22,572 12,307 63 224 100 345 5,048 221 4,58327,453 22 762 1,582 1 234 5,788 14,1584,691 July 18... 50,199 22,547 12,257 68 225 101 346 5,052 246 4,57127,652 22 958 1,712 1 231 5,828 14,1874,694 July 25... 50,321 22,468 12,216 79 222 104 345 5,058 203 <=4,560 "27,853 23,177 1,874 1 216 5,901 14,1864,676 Aug. 1... 50,272 22,477 12,284 63 238 99 344 5,058 156 4,55527,795 23 140 1,865 1 826 5,253 14,1964,655 Aug. 8. . .50,422 22,523 12,341 40 225 101 341 5,059 167 4,56727,899 23 233 1,948 1 929 5,181 14,1754,666 Aug. 15... 50,655 22,691 12,451 37 216 100 342 5,068 224 4,57327,964 23 304 2,015 1906 5,175 14,2084,660 Aug. 22. .. 50,737 22,753 12,528 42 204 102 338 5,077 211 4,57227,984 23 328 2,034 1 910 5,165 14,2194,656 Aug. 29. . .50,657 22,785 12,534 52 208 99 345 5,078 205 4,58427,872 23 207 1,938 1 900 5,167 14,2024,665 c Corrected. 1 Figures for various loan items are shown gross (i. e., before deduction of valuation reserves); they do not add to the total, which is shown net. 2 Includes guaranteed obligations. 1158 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 w F e R e a e r r i e n a d v t - h l k - e s v C a a i u n s l h t m b a w a n d e o n i c s t - e k h ti s s c j p u m o a s d a t e d s e n - i - d t d s 5 s p p u v n h c a o a a o i n e i r d p r l r r d a s t - - s - - , - , S p s d s a i i o u t c i o n a b v l a n i d t - i l t e - s - s c C c O h a e f e e i t e n f e c r r f c d . d i t s k - i ' - s, U m G er . o e n v n S - - t . s p p u n v c h a o a a o e i n i d r r p l r r d s a t - - - s - , - , S p s d s a i i o u t c i o n a b v l a n i d t - i l t e - s - s P U m G S e i a o n r a . n o e s g n v n d v S t s - - a t - . l m D t D e i o s c - e - ma F n 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 1950—July 12,107 805 2,27747,784 48,431 3,370 1,370 2,305 14,692 647 135 9,0701,237 201 339 6,448 100,360 1951—May 13,864 832 2,223 49,797 50,304 3,801 ,300 3,25014,483 737 130 8,9311,344 348 640 6,623110,650 June 14,360 862 2,421 3,598 ,325 3,34214,593 746 134 9,2211,316 341 378 6,664121,577 July 14,207 861 2,348 49,858 50,716 3,498 ,377 3,50814,675 739 139 9,5121,278 379 536 6,701106,499 June 6... 14,216 832 2,33150,286 50,,455 3,680 ,361 2,72314,514 749 132 9,2071,333 340 257 6,629 29,335 June 13... 14,463 883 2,63551,133 52,,606 3,584 ,207 2,39714,585 747 132 9,5641,342 341 358 6,664 24,439 June 20... 14,513 843 2,474 50,87551,791 3,537 ,391 3,56914,613 745 135 9,331 1,289 341 398 6,675 30,793 June 27... 14,249 890 2,24249,916 50,500 3,589 ,342 4,679 14,661 743 135 8,781 1,300 341 500 6,689 26,738 July 3... 14,205 812 2,299 49,340 50,250 3,644 ,545 4,33914,646 740 135 9,3451,293 379 440 6,699 25,269 July 11... 14,288 911 2,338 49,667 50,622 3,480 ,282 3,619 14,684 742 140 9,5781,290 379 612 6,701 25,546 July 18... 14,243 858 2,433 49,892 51,021 3,336 ,456 3,111 14,692 737 140 9,7591,265 378 708 6,698 25,746 July 25... 14,091 863 2,320 50,533 50,971 3,532 ,226 2,962 14,677 738 140 9,3641,266 379 383 6,705 23,637 Aug. 1... 14,051 807 2,318 50,38350,860 3,644 ,721 2,67314,673 740 138 9,4721,253 378 627 6,728 25,755 Aug. 8... 14,226 839 2.289 50,185 50,410 3,457 ,338 2,81214,690 742 139 9,7721,244 384 457 6,737 23,227 Aug. 15... 14,184 829 2,478 49,909 51,573 3,331 ,179 3,010 14,685 743 143 10,0611,246 384 634 6,714 24,426 Aug. 22... 14,119 852 2.290 50,296 50,914 3,331 ,176 2,95914,708 733 143 9,6041,250 375 551 6,718 24,002 Aug. 29... 14,092 896 2,15150,976 51,174 3,362 ,291 2,60914,741 751 143 9,1891,235 383 602 6,726 22,393 New York City 1950—July 4,415 14,99515,711 245 656 613 1,517 2,7521,017 153 200 2,308 40,657 1951—May 4,949 127 15,43516,216 293 581 883 1,476 2,704 1,111 261 317 2,330 42,272 June 5,303 132 15,81316,619 240 589 1,091 ,506 2,858 1,087 255 129 2,341 49,398 July 5,109 129 15,30516,096 247 643 1,126 ,477 2,834 1,064 284 331 2,354 41,673 June 6... 5,195 129 15,65616,359 206 645 777 ,473 2,799 1,109 254 83 2,315 13,196 June 13... 5,357 135 15,98416,901 217 495 647 ,518 2,948 1,109 255 147 2,353 9,562 June 20... 5,373 125 16,164 16,968 254 601 1,126 ,513 2,946 1,054 255 22 2,351 12,255 June 27... 5,288 138 15,44916,247 283 617 1,812 ,522 2,739 1,074 255 264 2,345 10,387 July 3... 5,104 129 15,18416,126 240 759 1,559 1,486 2,844 1,078 284 280 2,355 10,329 July 11... 5,182 139 15,28316,021 246 564 1,233 1,482 2,820 1,074 284 379 2,356 10,199 July 18... 5,121 125 15,23816,027 234 719 907 1,476 2,8851,053 284 456 2,355 9,568 July 25... 5,028 125 15,51316,210 267 530 803 1,465 2,7881,052 284 208 2,352 9,001 Aug. 1... 4,974 119 15,42116,212 254 969 685 1,456 2,847 ,031 283 375 2,365 10,528 Aug. 8... 5,031 125 15,34615,953 232 644 730 1,449 2,795 ,026 289 284 2,367 8,855 Aug. 15... 4,942 122 15,11716,066 230 455 782 1,437 2,868 ,033 289 349 9,010 Aug. 22 ... 4,958 124 15,32316,000 213 464 755 1,448 2,755 ,036 280 244 8,275 Aug. 29... 4,896 136 15,62416,247 247 598 665 1,476 2,633 ,022 288 319 2,361 8,143 Outside New York City 1950—July 7,692 677 2,245 32,78932,720 3,125 1,69213,175 628 6,318 220 139 4,140 59,703 1951—May 8,915 705 2,192 34,362 34,088 3,508 719 2,367 13,007 708 6,227 233 323 4,293 68,378 June 9,057 730 2,387 34,740 34,719 3,358 736 2,251 13,087 721 6,363 229 249 4,323 72,179 July 9,098 732 2,318 34,553 34,620 3,251 734 2,382 13,198 716 6,678 214 205 4,347 64,826 June 6... 9,021 703 2,302 34630 34,096 3,474 716 1,94613,041 723 6,408 224 174 4,314 16,139 June 13... 9,106 748 2,598 35,149 35,705 3,367 712 1,750 13,067 721 94 6,616 233 211 4,311 14,877 June 20... 9,140 718 2,44134,71134,823 3,283 790 2,44313,100 719 96 6,385 235 376 4,324 18,538 June 27... 8,961 752 2,205 34,467 34,253 3,306 725 2,86713,139 721 96 6,042 226 236 4,344 16,351 July 3... 9,101 683 2,268 34 156 34,124 3,404 786 2,78013,160 717 96 6,501 215 160 4,344 14,940 July 11... 9,106 772 2,309 34384 34,601 3,234 718 2,386 13,202 719 97 6,758 216 233 4,345 15,347 July 18... 9,122 733 2,399 34,654 34,994 3,102 737 2,204 13,216 714 97 6,874 212 252 4,343 16,178 July 25... 9,063 738 2,29235,020 34,761 3,265 696 2,159 13,212 715 97 6,576 214 175 4,353 14,636 Aug. 1... 9,077 688 2,285 34,962 34,648 3,390 752 1,988 13,217 717 95 6,625 222 252 4,363 15,227 Aug. 8... 9,195 714 2,26234,839 34,457 3,225 694 2,08213,241 718 96 6,977 218 173 4,370 14,372 Aug. 15... 9,242 707 2,446 34,792 35,507 3,101 724 2,22813,248 719 100 7,193 213 285 4,348 15,416 Aug. 22... 9,161 728 2,264 34,973 34,914 3,118 712 2,20413,260 708 100 6,849 214 307 4,355 15,727 Aug. 29... 9,196 760 2,12235,35234,927 3,115 693 1,944 13,265 730 100 6,556 213 283 4,365 14,250 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. SEPTEMBER 1951 1159 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 Comd 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 n T lo a v o n a e t n d a s s t l - Total1 i m t n c r i d i e a a u r l l , - s , - a T n o d b d r e o a k l e e r r s s To others R st e a a t l e x> to ansOther Total C ti e fi r - - O e t c h u e - r t a c a u g u n r r l a d i - - l G U t l i o i o o g . b v n a - S - s t. . O c t s u i t e e h r - s i e - r G l U t o i i o g o b . v a S n - - t . s . O c t s u t i e h e r - s i e - r loans )anks Total Bills o d n f e e e d b i s - n t s - - Notes Bonds2 ities Boston Aug 1 3,174 1,512 970 5 9 10 21 207 27 290 1,662 1,413 140 104 193 976 249 Aug 8 3,151 1,492 972 4 10 10 21 206 5 290 1,659 1,411 140 106 191 974 248 Aug. 15 3,127 1,502 975 3 10 10 21 206 15 289 1,625 1,376 110 106 189 971 249 Aug. 22 3,135 1,510 984 2 9 11 21 206 14 290 1,625 1,376 113 106 189 968 249 Aug. 29 3,128 1,529 980 7 10 10 21 206 35 287 1,599 1,350 92 106 189 963 249 New York* Aug. 1 22,308 1,047 7,285 299 814 33 247 810 168 ,555 1,261 9,043 853 441 1,621 6,128 ,218 Aug. 8 22,087 0,991 7 273 208 769 33 242 820 251 ,558 1,096 8,877 717 414 1,625 6,121 2,219 Aug. 15 22,134 1,113 7,377 175 748 34 241 817 323 ,562 1,021 8,827 725 389 1,619 6,094 ,194 Aug 22 22,075 1,058 7 425 172 715 34 241 817 259 ,559 1,017 8,835 741 380 1,626 6,088 ,182 Aug. 29 . . .. 22,301 1,177 7,418 221 708 35 243 829 320 ,567 1,124 8,890 706 382 1,641 6,161 2,234 Philadelphia Aug. 1 2,839 1,336 771 1 30 4 7 144 13 390 1,503 1.158 81 43 209 825 345 Aug 8 2 854 1,345 779 2 30 4 7 143 14 390 1,509 ,168 80 58 214 816 341 Aug 15 2,840 1,342 782 2 30 4 7 141 9 391 1,498 ,159 82 48 215 814 339 Aug. 22 2,852 1,342 788 1 29 4 6 142 5 391 1,510 ,174 89 53 218 814 336 Aug. 29 2,836 1,346 792 1 29 4 7 143 4 390 1,490 .162 75 50 218 819 328 Cleveland Aug. 1 4,993 2,006 1 177 7 29 10 60 388 16 350 2,987 2,499 231 209 507 1,552 488 Aug 8 5,023 2,012 1 189 7 22 10 60 389 17 349 3,011 2,527 255 220 510 1,542 484 Aug. 15 5,046 2,054 1 195 7 24 10 60 391 49 349 2,992 2,515 239 220 505 1,551 477 Aug. 22 5,052 2,042 1,204 7 23 11 60 393 29 347 3,010 2 ,533 259 221 504 1,549 477 Aug 29 5,061 2,045 1 199 8 23 10 60 394 35 348 3,016 2,537 262 221 504 1,550 479 Richmond Aug. 1 2,833 1,156 549 1 6 12 44 230 18 310 1,677 1.510 188 80 326 916 167 Aug. 8 2,861 1,155 546 1 5 11 41 234 21 310 1,706 L,534 202 89 324 919 172 Aug. 15 2,871 1,150 546 1 5 11 41 233 17 311 1,721 1,550 221 78 327 924 171 Aug. 22 2,865 1,151 548 1 6 11 41 234 16 309 1,714 1,541 210 85 324 922 173 Aug. 29 2,864 1,151 544 1 6 11 41 233 17 313 1,713 1,540 711 86 322 921 173 Atlanta Aug. 1 2,569 1,077 621 12 11 25 90 17 319 1,492 1,264 102 170 356 636 228 Aug. 8 2,606 1,080 622 11 13 25 87 14 326 1,526 1,299 131 173 353 642 227 Aug. 15 2,621 1,067 616 12 11 25 90 10 321 1,554 1,327 142 173 368 644 227 Aug. 22 2,596 1,060 615 11 11 25 89 7 321 1,536 L.309 119 179 369 642 227 Aug. 29 2,609 1,055 606 11 11 25 88 12 320 1,554 1,324 130 179 372 643 230 Chicago* Aug. 1 9,983 3,638 2,377 32 91 16 61 472 25 622 6,345 5,399 359 508 1,172 3,360 946 Aug. 8 9,969 3,646 2 405 12 84 16 61 472 32 622 6,323 5,381 356 528 1,148 3,349 942 Aug. 15 10,048 3,723 2 458 13 76 17 61 473 57 625 6,325 5,387 374 521 1,143 3,349 938 Aug. 22 10,067 3,755 2,470 20 72 17 60 475 75 623 6,312 5,377 394 504 1,131 3,348 935 Aug. 29 10,021 3,719 2,475 26 74 16 61 477 22 625 6,302 5,357 380 497 1,133 3,347 945 St. Louis Aug. 1 2,306 1,152 620 1 8 8 14 251 3 261 1,154 986 91 112 212 571 168 Aug. 8 2,327 1,167 620 1 7 9 14 251 18 261 1,160 991 91 120 202 578 169 Aug. 15 2,343 1,171 621 1 7 8 14 252 20 262 1,172 1,003 112 119 199 573 169 Aug. 22 2,327 1,168 626 2 7 8 14 252 11 262 1,159 991 101 117 198 575 168 Aug 29 2,311 1,162 627 1 7 8 14 252 4 263 1,149 981 96 116 203 566 168 Minneapolis Aug 1 1,217 589 322 3 6 110 154 628 494 36 24 132 302 134 Aug. 8 1,225 597 325 3 1 6 111 154 628 495 38 27 127 303 133 Aug. 15 1,229 601 324 3 6 111 8 155 628 496 41 24 132 299 132 Aug. 22 1,215 591 321 2 2 6 111 155 624 492 36 23 134 299 132 Aug. 29 1,226 599 320 3 9 111 10 152 627 495 35 24 136 300 132 Kansas City Aug. 1 . . 2,770 1,207 782 7 4 14 167 14 228 1,563 1,300 251 135 348 566 263 Aug. 8 2,809 1,207 792 7 14 165 4 229 1,602 1,338 289 148 337 564 264 Aug. 15 2,835 1,214 801 14 165 230 1,621 1,355 299 151 337 568 266 Aug. 22 2,858 1,219 800 6 14 166 6 232 1,639 1,369 303 150 343 573 270 Aug. 29 2,848 1,219 802 7 4 14 164 c 232 1,629 1,358 298 150 340 570 271 Dallas Aug. 1 2,636 1,425 976 9 11 48 120 t 273 1,211 1,044 132 105 234 573 167 Aug. 8 2,635 1,417 966 8 11 48 120 6 274 1,218 1,050 139 112 226 573 168 Aug. 15 2,660 1,422 972 9 11 48 120 275 1,238 1,063 158 114 217 574 175 Aug. 22 2,679 1,428 972 8 11 48 123 275 1,251 1,079 173 115 217 574 172 Aug. 29 2,673 1,435 977 10 49 123 278 1,238 1,067 160 115 217 575 171 San Francisco Aug. 1 12,472 6,342 2 674 23 6 262,556 19 1,113 6,130 4,887 184 293 1,373 3,037 1,243 Aug. 8 12,48 6,37 2,681 25 6 262,557 311,119 6,110 4,849 154 304 1,358 3,033 1,261 Aug. 15 12,55 6,40 2,712 19 262,562 291,121 6,150 4,891 167 309 1,352 3,063 1,259 Aug. 22 12,610 6,443 2,750 262,563 311,123 6,167 4,907 178 313 1,339 3,077 1,260 Aug. 29 12,610 6,479 2,762 17 262,564 471,131 6,131 4,869 148 313 1,337 3,071 1,262 City of Chicago* Aug. 1 6,01 2,370 1,800 32 82 14 50 106 i 320 3,644 3,054 182 280 647 1,945 590 Aug. 8 5,98 2,369 1,82 1 75 14 50 106 13 319 3,61 3,028 158 292 634 1,944 583 Aug 15 6,05 2,429 1,864 12 67 14 51 106 34 321 3,629 3,04 195 285 629 1,938 582 Aug. 22 ... 6,04 2,442 1 869 19 64 14 50 106 40 320 3,60 3,02 205 268 617 1,938 579 Aug. 29 6,03 2,42 1,874 26 66 14 50 106 14 318 3,603 3,01 200 261 619 1,938 585 * 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. 1160 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 i n r e a t d v k h - l - e s m b a w a n d e i n s c o t t e k - h i s c s m p u o a d s a d t s e n e i - - t d d s 3 s p p u v n c h a o a a o i e n i r d l r p r r d s a t - - - s - , - , S p s d s a i i o t u c i o a n v l a b t d n i e i l t - s - - s C h c O a e f e e e i n t f e c r r f c d d i t s k . - i ' s - u m G e . r o e n v n s - - t . p u s p n v c a h o a o a e i n d l i r r r r d s p a - - - t , - s - p s i d s a t i i o u c a i o n v l a t b n d i e i l t - - s s - U > m G S e i a o n . r a n o e s g n v d n v t S s - a - t - . l m D ti e o c s - - F ei o g r n - Time B in o o w g r s - - : C o i a t u a c a p n - l - ts B d it e a s b n 4 - k tions tions Boston Aug. 1 535 54 97 2,627 2,564 213 58 106 475 2 288 34 341 1,072 Aug. 8 538 56 89 2,601 2,533 199 46 110 476 1 283 33 340 1,002 Aug. 15 534 55 97 2,560 2,546 194 53 120 475 2 291 32 342 937 Aug. 22 543 57 88 2,574 2,530 175 52 128 475 1 283 31 342 952 Aug. 29 525 58 86 2,579 2,547 173 44 115 474 2 269 31 343 854 New York* Aug. 1 ,306 171 137 7,189 553 1,026 782 ,282 30 2,922 ,033 284 378 2,577 1,169 Aug. 8 ,364 183 133 7,122 544 694 825 ,275 31 2,872 ,029 290 287 2,578 9,474 Aug. 15 ,266 177 141 6,880 530 508 8812,262 31 2,947 ,036 290 355 2,578 9,713 Aug. 22 ,289 181 113 7,074 504 517 8542,274 32 2,829 ,040 281 247 2,574 8,921 Aug. 29 ,226 196 113 7,359 7,766 528 644 7572,302 28 2,702 ,025 289 338 2,574 8,707 Philadelphia Aug. 1 527 43 120 2,221 2,324 108 29 123 404 29 407 13 1 13 338 904 Aug. 8 526 4. 114 2,209 2,282 111 26 137 404 33 416 12 8 338 893 Aug. 15 536 44 120 2,173 2,317 98 23 152 404 33 428 12 19 338 905 Aug. 22 531 46 112 2,201 2,283 97 32 149 403 33 388 14 35 338 912 Aug. 29 53: 48 109 2,204 2,292 91 23 128 403 33 381 13 45 337 835 Cleveland Aug. 1 931 82 148 3,552 3,586 244 55 ,332 55 486 9 21 491 1,518 Aug. 8 923 8 13 3,545 3,539 248 61 2411,333 56 503 9 13 492 1,317 Aug. 15 900 83 151 3,520 3,663 241 5. 2511,334 56 534 8 10 493 1,521 Aug. 22 918 86 138 3,550 3,611 230 49 252 ,337 56 502 8 21 493 1,538 Aug. 29 90 91 139 3,609 3,659 230 48 2211,339 66 475 9 11 494 1,431 Richmond Aug. 1 537 67 172 2,260 2,243 19 47 90 55 26 403 249 893 Aug. 8 550 71 178 2,26' 2,26 173 44 9 557 26 432 250 858 Aug. 15 550 68 182 2,25' 2,29' 168 50 111 556 26 436 250 915 Aug. 22 539 74 174 2,240 2,266 159 49 109 557 26 417 250 919 Aug. 29 540 7 159 2,256 2,262 163 4 96 558 26 407 250 873 Atlanta Aug. 1 479 42 202 1,983 1,85' 325 2. 60 516 515 21 810 Aug. 8 489 46 200 1,988 1,849 323 25 69 517 551 216 802 Aug. 15 481 44 216 1,970 1,906 313 2 76 520 569 215 830 Aug. 22 507 46 189 ,970 1,863 302 29 77 521 54. 216 862 Aug. 29 48' 48 18' ,986 1,848 318 2 68 521 530 216 785 Chicago* Aug. 1 102 331 6,796 6,807 612 129 588 ,642 1,591 3,643 Aug. 8 ,142 106 310 6,694 6,715 583 112 610 ,643 1,668 793 3,077 Aug. 15 M42 106 346 6,72 = 6,960 590 112 ,643 1,719 79: 3,418 Aug. 22 ,104 107 31 6,806 6,806 642 104 ,644 1,613 793 3,444 Aug. 29 ,181 110 295 6,935 6,911 635 117 5362,645 1,538 794 3,256 St. Louis Aug. 1 432 32 120 1,518 1,599 115 1 71 472 59: 204 694 A Au u g g . . 1 8 5 4 4 3 3 2 2 3 3 3 3 1 1 1 2 9 1 1 , , 5 5 2 2 0 0 1 1 , , 6 6 0 4 2 6 1 1 1 1 3 5 1 1 8 8 8 7 8 3 4 4 7 7 2 2 6 6 2 2 3 5 2 20 0 . 5 c 6 7 6 0 1 1 Aug. 22 428 35 116 1,523 1,61 111 20 84 472 591 205 692 Aug. 29. 438 31 11 1,537 1,607 112 2- 73 47: 579 20 624 Minneapolis Aug. 1 23 13 74 819 810 136 21 58 232 29. 109 354 Aug. 8 216 13 81 812 815 123 1 59 23: 315 109 417 Aug. 15 226 13 92 792 846 113 16 75 232 328 109 457 Aug. 22 22 1 78 795 819 10' 15 72 233 306 110 452 Aug. 29 215 14 73 805 816 118 18 63 232 298 110 395 Kansas City Aug. 1 562 33 288 2,046 2,04. 261 32 97 399 19 235 847 Aug. 8 578 35 299 2,03 2,046 244 3- 100 401 19 926 236 912 Aug. 15 586 36 32 2,085 2,156 235 30 106 40: 19 938 236 959 Aug. 22 550 35 320 2,07 2,104 251 28 106 403 19 921 237 1,065 Aug. 29 573 3 272 2,09 2,085 245 27 96 404 19 864 237 852 Dallas Aug. 1 50S 3 365 2,19C 2,16 19 3 65 368 67 629 25 813 Aug. 8 55 4C 356 2,18C 2,152 198 37 6' 368 67 672 251 769 A A u u g g . . 2 1 2 5 5 5 5 5 i 3 3 « - 3 3 9 9 9 2 2 , , 2 2 0 3 5 2 2 , ,2 26 6 1 1 7 7 7 4 42 7 7 : 3 36 6 9 8 6 5 6 6 6 6 9 9 5 3 2 2 5 5 1 2 8 9 4 4 1 8 San A u F g r . a 2 nc 9 isco 55, 4 35 2,23 2,204 192 34 6* 368 65 659 253 820 Aug. 1 ,87* 13 264 7,182 68 = 242 4004,996 46' 483 99 925 3,038 Aug. 8 ,91 12* 273 7,21 7,09* 59* 22< 4225,012 464 51 62 92' 3,045 Aug. 15 ,98 13 28; 7,21* 55 24< 4285,01 464 55 134 3,229 Aug. 22 ,93 132 7,255 7^344 572 23' 4385,02C 465 516 104 3,297 Aug. 29 ,91 25; 7,384 55 23* 3885,023 465 487 25 91 2,961 City of Chicago* 7',17 Aug. 1 ,39. 16 4,17' 4,252 29; 1,397 22 1,13 2,166 Aug. 8 ,42. 4,09( 4,19i 27 29' 1,398 22 1,17 1,886 Aug. 15 ,41- 4,11. 4,345 27 31* 1,398 22 1,215 2,078 Aug. 22 ,40' 14 4,15^ 4,272 300 30. 1,39 22 1,148 53 2,054 Aug. 29 ,43< 4,24<: 4,336 294 271 l,40( 22 l,08i 532 1,960 For footnotes see opposite page and preceding table. 1161 SEPTEMBER 1951 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 oar list drawn and their (nonmember) Federal Reserve branches and offices l 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 Binks 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 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 Dec 31 1950 14,015 4,824 12,162 4,534 6,868 3,589 5,294 945 1,853 290 July 31 1951P .. 14,004 4,995 12,167 4,702 6,851 3,723 5,316 979 1,837 293 By districts and by States July 31, 1951* District Boston 472 352 472 352 324 277 148 75 New York 863 983 863 983 742 910 121 73 Philadelphia 834 171 834 171 637 131 197 40 Cleveland 1,110 324 1,110 324 687 280 423 44 Richmond 1,006 568 807 425 475 264 332 161 199 143 Atlanta 1,208 226 608 186 356 159 252 27 600 40 Chicago ... .... 2,487 628 2,487 628 1,007 272 1,480 356 St Louis 1,465 153 1,136 93 496 55 640 38 329 60 Minneapolis 1,275 112 678 71 476 28 202 43 597 41 Kansas City 1,759 20 1,750 20 755 10 995 10 9 Dallas 1,032 64 929 55 632 36 297 19 103 9 San Francisco 493 1 394 493 1,394 264 1,301 229 93 State Alabama 225 27 129 27 93 27 36 96 Arizona .... 11 62 11 62 5 45 6 17 Arkansas 231 20 109 5 68 2 41 3 122 15 California 193 995 193 995 119 942 74 53 Colorado 149 4 149 4 93 3 56 1 Connecticut 103 58 103 58 62 51 41 7 Delaware 38 21 38 21 17 8 21 13 District of Columbia.. 19 46 19 46 15 36 4 10 Florida 196 7 136 6 75 6 61 60 1 Georgia 401 44 117 41 66 37 51 4 284 3 Idaho 43 56 43 56 24 51 19 5 Illinois 889 2 887 2 510 2 377 2 Indiana 483 115 483 115 238 61 245 54 Iowa . . . 661 164 661 164 160 501 164 Kansas 610 1 608 1 215 1 393 2 Kentuckv 380 48 380 48 113 31 267 17 Louisiana 166 78 62 55 47 48 15 7 104 23 Miaine 62 72 62 72 38 37 24 35 Maryland 160 128 160 128 75 77 85 51 Massachusetts 176 180 176 180 140 162 36 18 Michigan 438 247 438 247 231 191 207 56 ^Minnesota ... .... 678 6 267 6 206 6 61 411 IVIississippi 201 68 41 14 31 7 10 7 160 54 Missouri 595 1 530 1 180 1 350 65 ^Montana 110 110 84 26 412 2 412 2 140 2 272 Nevada 8 20 8 20 6 19 2 1 New Hampshire 74 2 74 2 52 1 22 1 New Jersey . . 318 171 318 171 273 155 45 16 New Mexico 51 19 51 19 35 3 16 16 New York 620 815 620 815 541 758 79 57 North Carolina 209 227 99 90 54 50 45 40 110 137 North Dakota 150 22 62 6 42 20 6 88 16 Ohio 657 234 657 234 419 203 238 31 Oklahoma 384 1 376 1 224 1 152 8 Oregon 69 104 69 104 30 90 39 14 Pennsylvania 959 207 959 207 730 180 229 27 Rhode Island 14 52 14 52 8 40 6 12 South Carolina 150 50 66 44 32 36 34 8 84 6 South Dakota 169 50 71 25 62 22 9 3 98 25 Tennessee 296 98 210 85 84 63 126 22 86 13 Texas 909 12 857 12 580 12 277 52 Utah 54 26 54 26 30 24 24 2 Vermont 68 11 68 11 39 2 29 9 Virginia 313 117 309 117 203 65 106 52 4 117 153 117 153 51 143 66 10 180 179 108 71 1 Wisconsin 552 152 552 152 164 22 388 130 Wvominc 53 53 39 14 reserv 1162 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] j 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 in w g n banks bo B u il g ls ht Others2 I U m S i n t n p a i t o t t o e e r s d ts E U S f x r n t p o a i o m t t e e r d t s s c D h o e a x l n l - g ar e G s o h o ip d p p s o e s d i t n o t b r s e e d t in w i e n e n or bills United Foreign States countries 1950—June 240 279 126 82 44 154 170 66 1 21 21 Julv 259 335 155 87 68 180 211 80 1 22 22 August 286 374 174 103 71 200 238 87 1 26 21 September 308 397 187 103 84 211 264 79 2 29 23 October 312 383 168 100 68 215 243 85 2 29 25 November 325 383 166 104 62 217 234 88 2 29 29 December 333 394 192 114 78 202 245 87 2 28 32 1951—January 356 453 202 126 76 251 286 100 2 36 29 February 369 470 201 121 79 270 304 99 2 36 29 March 381 479 198 122 76 279 314 106 2 30 26 April 387 456 170 119 52 285 288 111 2 24 31 May 364 417 143 108 35 274 259 102 1 22 33 June 331 425 162 120 42 263 267 104 (3) 22 31 July 336 380 135 103 33 245 225 104 (3) 24 27 1 As reported by dealers; includes some finance company paper sold in open market. 2 None held by Federal Reserve Banks except on Mar. 31, 1951, and on Apr. 30, 1951, when their holdings were $1,996,000 and $178,000, respectively. 3 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 Customers' Debit Debit credit balances l 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 )1 es a in n a v d c e c t s o r t u a m n d e t i s n n g t a in n a v d c e c t s o r t u a m d n e t i s n n g t a b n a d n k i s n borrowed2 Free O (n th et e ) r a I in n n a v d c p e c t a s o r t r u a m t n d n e t i e s n n r g t s' a in n a v d I c n e c t s o r f t u a i m r d n 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 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—June 681 5 419 280 493 528 129 20 9 260 December... 881 5 400 306 523 633 159 26 15 271 1950—August s 1,231 3 752 3 780 September. . 3 1,284 3 751 3 738 October 3 1,351 3 759 3 771 November. . 3 1,360 3 774 3 796 December... 1,356 9 399 397 745 890 230 36 12 317 1951—January.... 31,411 a 690 3 948 February.. . 31,367 3 642 3 953 March s1,304 3 715 3918 April »1,286 3661 3 879 J M u a n y e s1 1 , , 2 2 8 7 7 5 id 375 364" ' 3 6 6 8 8 0 1 3 8 8 3 5 4 5 225 26 13 319 July s1,266 3 672 3 825 1 Excludes balances wTith 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). 3 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): May, 41; June, 38; July, 43. 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. SEPTEMBER 1951 1163 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OPEN-MARKET MONEY RATES IN NEW YORK CITY BANK RATES ON BUSINESS LOANS [Per cent per annum] AVERAGE OF RATES CHARGED ON SHORT-TERM LOANS TO BUSINESSES BY BANKS IN SELECTED CITIES mo Y w n e e th a 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 r 6 - e , s l - 1 a a P b d c n e a r a 9 c r i c n y s m 0 e e ' k s p s e - i , t - I j c S h n l a c e t o r a e o l a e x a w n s - l c - n 2 l g k - e m bi o 3 s l U l n - e s . c t h s u S r . i 9 t i i m G s - e s t s o o o u n v e ( 1 t s e t h 2 a 4 r - x n a m 3 i b s - e y l s e n u t e o ) t e a s r 5 5 - Area and period [ l P o A e a l r n l s cent $ $ 1 1 p 0 , e 0 , r 0 0 0 0 a 0 - nnu $ $ m 1 1 0 ] 0 S 0 ,0 i , z 0 0 e 9 0 0 - o f $ $ 1 l 2 o 0 0 0 a 0 , n 0 ,0 0 0 0 0 - $ a 2 n 0 d 0 o ,0 v 0 e 0 r 1948 average 1.44 1.55 1.040 1.14 1.62 Annual averages: 1949 average 1.48 1.63 1.102 1.14 1.43 19 cities: 1950 average 1.45 1.63 1.218 1.26 1.50 1941 2.0 4.3 3.0 1.9 1.8 1942 2.2 4.4 3.2 2.2 2.0 1950—August 1.44 1.63 1.211 1.26 1.45 1943 2.6 4.4 3.4 2.5 2.4 September. 1.66 1.63 1.315 1.33 1.55 1944 2.4 4.3 3.3 2.6 2.2 October 1.73 1.63 1.329 1.40 1.65 1945 2.2 4.3 3.2 2.3 2.0 November. 1.69 1.63 1.364 1.47 1.62 1946 2.1 4.2 3.1 2.2 1.7 December.. 1.72 1.63 1.367 1.46 1.64 1947 2.1 4.2 3.1 2.5 1.8 1948 2.5 4.4 3.5 2.8 2.2 1951—January. . . 1.86 2.00 1.387 1.47 1.66 1949 2.7 4.6 3.7 3.0 2.4 February. . 1.96 2.00 1.391 1.60 1.67 1950 4.5 3.6 3.0 2.4 March 2.06 2.00 1.422 1.79 1.86 April 2.13 2.00 1.520 1.89 2.03 Quarterly: May 2.17 2.15 1.578 1.85 2.04 19 cities: June 2.31 2.25 1.499 1.79 2.00 1950—Sept 2.63 4.51 3.63 2.95 2.34 July 2.31 2.25 1.593 1.74 1.94 Dec 2.84 4.60 3.73 3.10 2.57 August 2.26 2.25 1.644 1.70 1.89 1951—Mar 3.02 4.68 3.88 3.27 2.76 June 3.07 4.73 3.93 3.32 2.81 Week ending: New York City: Aug. 4. . .2 U- 2-2 } 1.611 1.72 1.93 1950—Sept 2.32 4.06 3.33 2.15 Aug. 11... 2-21 1.652 1.73 1.91 Dec 2.51 4.17 3.44 2.35 Aug. 18.. . 2-21 1.660 1.71 1.90 1951—Mar 2.74 4.20 3.68 2.59 Aug. 25. .. 2-2) 1.651 1.68 1.87 June 2.78 4.37 3.66 3.06 2.64 Sept. 1. . . 2-21 1.645 1.68 1.87 7 Northern and Eastern cities: 1950—Sept 2.63 4.56 2.87 2.39 1 Monthly figures are averages of weekly prevailing rates. Dec 2.87 4.64 3.18 2.65 2 The average rate on 90-day Stock Exchange time loans was 1.50 1951—Mar 3.02 4.74 3.23 2.81 per cent, Aug. 2, 1946-Aug. 16, 1948; 1.63 per cent, Aug. 17, 1948- June , 3.04 4.68 3.90 3.28 2.83 Jan. 1, 1951. In 1951 changes have been made on the following dates: 11 Southern and Jan. 2, 2.00; May 16, 2.25 per cent. Western cities: 3 Rate on new issues within period. 1950—Sept 3.13 4.71 3.83 3.15 2.67 4 Series includes certificates of indebtedness and selected note and Dec 3.28 4.78 3.91 3.21 2.90 bond issues. Beginning Aug. 1, 1951, it is composed of 1% per cent 1951—Mar 3.42 4.87 4.01 3.41 3.06 certificate of July 1, 1952. June 3.52 4.90 4.10 3.52 3.14 5 Series includes notes and selected bond issues. Back figures.—See Banking and Monetary Statistics, Tables 120-121 pp. 448-459, and BULLETIN for May 1945, pp. 483-490, and October NOTE.—For description of series see BULLETIN for March 1949, 1947, pp. 1251-1253. pp. 228-237. BOND YIELDS 1 [Per cent per annum] U. S. Government Corporate (Moody's)i (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)3 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- P ut u il b it l y ic Number of issues 1-5 1-8 15 9 120 30 30 30 30 40 40 40 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 1950 average 1.84 2.32 1.98 2.60 2.86 2.62 2.69 2.89 3.24 2.67 3.10 2.82 1950—August 1 82 2 33 1 90 2 58 2 85 2.61 2.67 2.87 3.23 2.66 3.08 2.80 September . 1 89 2 36 1 88 2 62 2 86 2 64 2.71 2.88 3.21 2.68 3.07 2.84 October 1.94 2.38 1.82 2.65 2.88 2.67 2.72 2.91 3.22 2.70 3.09 2.85 November 1.95 2.38 1.79 2.66 2.88 2.67 2.72 2.92 3.22 2.70 3.08 2.86 December 1.97 2.39 1.77 2.66 2.88 2.67 2.72 2.91 3.20 2.70 3.07 2.87 1951—January ... 1 96 2 39 1 62 2 64 2 86 2 66 2.71 2.89 3.17 2.69 3.03 2.85 February (5) 2 40 1 61 2 66 2 85 2.66 2.71 2.88 3.16 2.69 3.01 2.86 March 2 47 1 87 2 78 2 95 2 78 2 81 2.98 3.22 2.79 3.09 2.95 April 2 56 2 05 2 88 3 07 2 87 2.93 3.12 3.34 2.89 3.24 3.07 ]Vlay 2.63 2.09 2.89 3.09 2.88 2.93 3.14 3.40 2.90 3.28 3.10 June 2 65 2 22 2 95 3 16 2 94 2.99 3.21 3.49 2.96 3.33 3.18 July 2 63 2 18 2 93 3 17 2 94 2.99 3.23 3.53 2.97 3.36 3.19 August 2.57 2.04 2.86 3.12 2.88 2.92 3.18 3.51 2.92 3.31 3.13 Week ending: Aug. 4 . 2 62 2 06 2 89 3 15 2 91 2 96 3.20 3.52 2.94 3.34 3.15 Aug. 11 2 59 2 05 2 87 3 14 2 89 2.94 3.19 3.52 2.93 3.33 3.15 Aug. 18 2 56 2 03 2 85 3 12 2.87 2.92 3.17 3.51 2.92 3.30 3.13 Aug. 25. 2 55 2 02 2 84 3 11 2 86 2 91 3.17 3.50 2.91 3.30 3.12 Sept. 1 2.55 2.02 2.86 3.10 2.85 2.91 3.16 3.49 2.90 3.30 3.11 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 5 and 6 issues, respectively, and^the railroad Aaa and Aa groups from 10 to 5 issues. 6 Series discontinued. 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. 1164 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SECURITY MARKETS * Bond prices Stock prices Common Volume of Standard and Poor's series Securities and Exchange Commission series trad- Yea o r r , w m e o ek nth, m U G e e . r o n n v S - t - . 2 g M i ( r c h a i u i d p g n a e h - l ) - 3 g ( r C r p h a a o o i d t g r e - e - h ) - 3 fe P r r r e e - d4 (index, 1935-39=100) Manufact ( u in r d in e g x, 1939=100) Tr f a in d - e, s th a i ( o n o n i f g n u d 5 - s Total d t I r u n ia s - - l R ro a a i d l- u P t u i li l b c it - y Total Total D ab u l r e - N d ab u o l r n e - - T p t r o i a o r n n ta s- - U iti t e il s - a s a n e i n c r c e v d e - , M in i g n- shares) Number of issues 1-8 15 17 15 416 365 20 31 265 170 98 72 21 28 32 14 1948 average. . . 100.84 125.3 118.3 168.7 124 131 115 96 132 136 124 147 158 99 157 133 1,144 1949 average. . . 102.73 128.9 121.0 176.4 121 128 97 98 128 132 116 147 139 98 161 129 1,037 1950 average. . . 102.53 133.4 122.0 181.8 146 156 117 107 154 166 150 180 160 107 184 144 2,012 1950—Aug 102.28 134.8 122.1 181.9 147 158 121 104 154 168 152 182 165 106 177 146 1,673 Sept 101.90 135.2 121.7 181.8 152 163 125 105 159 173 158 188 168 107 188 150 1,930 Oct 101.64 136.4 121.1 180.5 158 171 129 106 165 180 166 194 171 108 198 155 2,141 Nov 101.69 137.0 121.1 180.8 156 169 127 105 166 182 166 197 171 107 201 158 2,032 Dec 101.53 137.4 121.1 179.9 158 171 139 104 165 180 162 198 184 107 196 160 2,769 1951—Jan 101.56 140.5 121.4 180.9 169 183 153 109 177 194 175 212 202 110 205 176 2,974 Feb 101.44 140.8 121.3 180.9 175 190 159 111 184 203 182 223 213 112 213 184 2,104 March... 100.28 135.5 119.4 174.9 170 184 149 111 180 198 178 217 200 113 210 177 1,549 April.... 98.93 131.9 117.8 170.4 172 187 149 110 183 204 181 225 202 111 208 183 1,517 May. . . . 97.90 131.1 117.4 168.9 174 189 148 111 182 203 175 228 197 111 206 188 1,630 June.... 97.62 128.6 116.6 167.9 172 187 142 110 179 200 169 229 188 110 201 186 1,305 July 97.93 129.4 116.2 166.7 173 188 139 112 182 204 170 236 188 111 202 195 1,333 Aug..... 98.90 132.1 117.1 169.4 182 198 147 114 190 215 179 249 196 114 206 219 1,463 Week ending: Aug. 4.. 98.07 131.7 116.3 167.6 179 196 147 113 189 214 176 249 196 113 205 217 1,708 Aug. 11.. 98.63 131.9 116.8 169.0 182 199 149 114 188 213 177 247 195 113 206 214 1,516 Aug. 18.. 99.07 132.3 117.0 169.5 182 198 147 115 190 215 180 248 196 115 206 218 1,443 Aug. 25.. 99.12 132.4 117.7 170.7 181 198 145 115 189 215 179 248 193 114 206 221 1,221 Sept. 1.. 99.23 132.4 117.6 170.1 184 201 149 115 192 218 182 252 197 115 208 224 1,471 1 Monthly and weekly data are averages of daily figures, except for municipal and corporate bonds, preferred stocks, and common stocks (Standard and Poor's series), which are based on figures for Wednesday. 2 Average of taxable bonds due or callable in 15 years or more. 3 Prices derived from average yields, as computed by Standard and Poor's Corporation, on basis of a 4 per cent 20-year bond. 4 Standard and Poor's Corporation. Prices derived from averages of median yields on noncallable high-grade stocks on basis of a $7 annual dividend. B Average daily volume of trading in stocks on the New York Stock Exchange. 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 capita] For refunding Total Domestic Domestic (new Year or month f i u a r n n n e g d d - ) - m T e ( a f e i o d o g n s t r o n d t a - i - ) c l Total S n m a p t i n a c a u d t i l - e - a c F e g i e e r e a s d n l - x - Total Co B n r a o p o n t o n d e r d s a s te Stocks e F i o g r n - 2 m T e f a ( e i o o d g n s r t o 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 c F e g i e e r e a s d n l - x - Total Co B n r a p o o n o t n d e r d s a s te Stocks e F ig o n r- 2 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 10,220 9,085 9,076 2,604 294 46,177 45,269 908 10 1,135 1,135 82 768 284 257 28 1949 9,753 8,160 8,131 2,803 233 5,095 4,125 971 29 1,593 1,492 104 943 445 393 52 101 1950 310,935 8,271 8,160 3,370 394 4,395 3,199 1,197 111 32,665 2,441 112 992 1,338 1,280 58 123 1950—June 1,293 965 957 334 18 605 437 169 8 328 328 20 35 273 273 July 589 513 510 204 8 297 221 77 3 76 76 1 53 22 22 August.. . 794 555 523 265 258 213 45 32 239 193 8 48 137 131 5 46 September 950 729 712 272 145 295 244 51 18 220 220 6 193 21 21 October. . 802 658 653 181 472 272 200 5 144 144 3 63 78 77 1 November 853 613 599 356 244 201 43 14 240 240 14 150 75 67 8 December. 840 630 630 138 98 394 319 75 210 210 28 79 103 91 12 1951—January.. 517 439 436 154 41 242 192 50 3 77 77 19 45 13 11 2 February. 3834 3 649 594 181 48 365 332 33 5 184 184 3 154 27 25 2 March.... 1,229 1,019 1,001 158 48 795 641 154 17 211 180 10 88 82 52 30 "31 April 1,064 920 918 228 29 660 433 227 2 144 144 4 61 80 24 55 May 1,162 947 866 407 60 399 314 85 80 215 215 4 198 13 8 6 June 1,286 1,090 1,075 280 89 706 562 144 15 197 196 3 137 57 49 7 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, 1950, and February 1951 include 244 million dollars, 100 million, and 50 million, respectively, of issues of the International Bank for Reconstruction and Development. 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. 1165 SEPTEMBER 1951 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NEW CORPORATE SECURITY ISSUES 1 PROPOSED USES OF PROCEEDS, ALL ISSUERS [In millions of dollars] Proposed uses of net proceeds Estimated Estimated Year or month gross net !^ew money Retirement of securities proceeds 2 proceeds * Repayment Other of Total Plant and Working Total Bonds and Preferred other debt purposes equipment capital notes stock 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 1950 6,292 6,194 3,987 3,029 958 1,224 1,095 129 651 332 1950—juiy 315 311 211 140 71 20 19 20 60 August 407 402 225 189 36 138 132 6 17 23 September 416 408 306 248 58 33 28 5 32 37 October 561 550 312 255 57 89 62 27 129 20 November 393 387 268 193 75 76 63 13 28 15 December.. 553 546 376 269 107 74 72 2 71 25 1951—January 383 359 301 224 77 20 17 3 29 8 February 383 377 314 243 71 30 28 2 26 6 March 1,009 994 845 699 146 68 68 53 28 April 824 810 626 504 122 65 13 52 64 55 May 748 739 676 487 189 20 14 6 26 18 June . ... 825 812 685 431 253 63 54 9 49 15 July 481 472 436 326 110 12 11 1 21 3 PROPOSED USES OF PROCEEDS, BY MAJOR GROUPS OF ISSUERS* [In millions of dollars] Manufacturing 6 C m o is m c m el e la r n c e ia o l u s a n 6 d Railroad Public utility7 Communication8 R a e n a d l f e in s a ta n t c e ial 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 ments 10 pro- moneyments 10 pro- money ments 10 pro- moneyments 10 pro- moneyments 10 pro- money ments 10 ceeds9 ceeds9 ceeds9 ceeds9 ceeds9 ceeds9 1938 831 469 226 54 24 30 1,208 180 943 16 8 7 1939 584 188 353 182 85 97 1,246 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 1 1 9 9 4 4 7 8 . . .. 2 2, , 1 6 8 8 0 6 1 1 , , 9 7 7 2 4 6 3 5 5 4 3 "403" "364' ""2'i' 2 6 8 1 3 7 2 5 4 4 0 6 3 5 5 6 3 2 , , 2 2 1 8 2 1 2 1 , ,9 1 9 8 8 8 9 1 3 4 9 5 891 "870" 2 2 58 8 7 6 4 1 8 8 5 9 2 3 4 0 1949 1,391 851 44 338 229 28 456 441 11 2,615 2,140 234 567 505 49 593 440 35 1950 1,165 695 143 533 273 67 587 346 183 2,895 2,003 679 396 314 73 618 356 78 1950—July 68 50 3 72 22 3 13 13 104 81 11 24 21 3 30 25 August 42 20 5 40 19 8 42 38 4 233 121 107 6 6 39 22 14 September 70 43 10 62 15 8 17 17 223 205 11 7 5 28 21 3 October 180 65 33 39 14 16 34 34 228 164 33 23 15 7" 46 20 November 127 78 21 31 17 8 24 24 174 126 45 9 6 22 17 1 December 146 113 10 109 64 2 72 16 '""56" 183 162 5 4 3 32 18 1 1951—January 65 47 7 74 46 6 44 44 185 127 7 9 9 31 28 February 63 53 2 27 20 5 26 8 '"'is' 220 200 4 2 2 39 33 1 March 298 219 28 52 44 2 30 30 172 115 37 423 421 20 16 April 405 301 55 48 23 4 20 20 278 230 6 24 24 35 30 May 384 353 1 71 57 12 14 14 217 211 3 4 4 50 37 3 June 361 314 18 42 28 4 26 26 258 242 6 3 2 123 73 36 July 129 109 8 17 13 2 18 18 188 178 2 50 50 69 6S 1 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. 8 Estimated net proceeds are equal to estimated gross proceeds less cost of flotation, i.e., compensation to underwriters, agents, etc., and expenses. 4 Classifications for years 1938-47 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. 1166 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 dollarsand over Assets 0" 50 million dollarsand over Assets of 10-50 million iollars (200 corporations) (82 corporations) (118 corporations) Year or quarter 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 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 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 21,327 2,033 1,202 943 17,416 1,57? 932 804 3,912 460 271 139 1947 30,815 4,099 2,521 1,167 25,686 3,423 2,105 1,000 5,129 676 416 167 1948 36,955 5 315 3 310 1,403 31,238 4 593 2,860 1,210 5,717 721 450 192 1949 36,702 5,035 3,099 1,657 31,578 4,506 2,768 1,474 5,124 529 330 183 1950 43,950 7 R91 4,050 2,237 37,704 6,994 3,561 2,013 6 - 246 897 489 224 Quarterly 1949—i 9,363 1,326 808 343 8,056 1,187 723 303 1,307 139 84 40 2 9,369 L 196 726 354 8 115 1 077 653 312 L ,254 119 73 42 3 9,420 1,312 799 331 8,148 1,183 717 292 1,273 129 82 39 4 8,550 L ,201 766 629 7,259 1,059 675 567 1,291 142 91 62 1950—1 i 9,255 1,400 801 387 7,935 1,254 715 347 1,320 146 87 40 2 i 10,649 S?1 1,046 393 9,179 1,631 934 347 .471 190 112 46 31 11,790 2 185 1 245 583 10,110 1,925 1,092 534 1,681 260 152 49 41 12,255 2,485 958 873 10,481 2,185 820 785 1,774 300 138 88 1951_1 r12.698 r2 230 r907 467 r10,815 rl ,950 r791 420 '1,883 '280 '•lie 47 2 13,039 2,222 922 474 11,089 1,934 802 421 1,950 288 120 52 PUBLIC UTILITY CORPORATIONS [In millions of dollars] Railroad Electric: power Telephone 2 Year or quarter r O e p v in e e r g n a u t e - P b t e r 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 O re 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 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 1,137 384 224 173 1940 . . 4,297 249 189 159 2,797 692 548 447 1 206 417 2?8 176 1941 5,347 674 500 186 3,029 774 527 437 1,334 473 236 170 1942 7,466 1,658 902 202 3,216 847 490 408 1,508 551 222 160 1943 9,055 2,211 873 217 3,464 913 502 410 1 691 616 233 166 1944 9,437 1,972 667 246 3,615 902 507 398 1,815 649 222 165 1945 8,902 756 450 246 3,681 905 534 407 1,979 674 265 171 1946 7,628 271 287 235 3,815 964 638 458 2,148 517 253 179 1947 8,685 777 479 236 4,291 954 643 494 2,283 443 192 131 1948 9,672 1,148 699 289 4,830 983 657 493 2,694 563 263 178 1949 8,580 700 438 252 5,055 1,129 757 553 2,967 664 309 213 1950 9 473 1,385 783 312 5,431 1,303 824 619 3 ,342 952 441 276 Quarterly 1949—1 t t 2,147 119 58 69 1 .317 316 206 123 707 143 63 49 2 2,226 183 115 55 1,226 272 180 135 733 158 72 50 3 2,140 174 104 50 1,224 260 175 140 748 168 79 53 4 2,066 224 161 78 1,288 281 196 156 779 195 95 60 1950—1 . .. 1,985 109 3 52 61 1,378 351 3 230 146 787 210 399 63 2 2,238 248 s 157 53 1,322 321 3212 153 821 231 3 111 67 3 2,534 454 3257 55 1,317 293 3171 152 853 251 3 112 71 4 2,716 574 3 318 142 L ,415 339 3211 168 881 260 3119 75 1951—1 2,440 229 103 100 1,504 413 229 157 904 275 118 75 2 2,596 275 144 62 L ,414 332 195 160 918 2 74 117 77 r Revised. 1 Certain Federal income tax accri als for the first six months of 1950, required by increases in normal and surtax rates and charged by many companies against third quarter profits, have been redistributed to the first and second quarters. Available information does not permit a similar redistribution of accruals charged against fourth quarter profits to cover 1950 liability for excess profits taxes. 2 New series. 3 As reported. 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. New series. Figures are for 21 large companies (which account for over 85 per cent of all telephone operations) and include principally the telephone subsidiaries of the Bell System. Data are obtained from the Federal Communications Commission, except for dividends, which are from published company reports. All series. Profits before taxes reter 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); and p. 908 of the BULLETIN for September 1944 (electric power). SEPTEMBER 1951 1167 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 1949 1950 1951 1948 1949 1950 2 3 4 1 i 3l 4l 1 2 Nondurable goods industries Total (94 corps.):2 Sales 13,364 1? 790 14,710 3,051 3,163 3,333 3 251 3 4S3 3,030 4 066 rA 3?3 4 ?60 2,208 1 843 701 397 446 S03 504 581 78? 833 '8S0 8?? 1,474 1,211 1 S10 256 292 34? 307 3S3 468 38? '376 .375 Dividends 656 708 887 166 147 249 166 175 213 333 198 201 Selected industries: Foods and kindred products (28 corps.): Sales 3,447 3 254 3 416 792 822 83S 757 811 0S7 89? '1 000 878 Profits before taxes . . 410 377 463 89 101 102 83 100 157 124 120 94 Profits after taxes 257 233 253 54 63 64 47 58 88 59 '58 47 Dividends 135 134 141 31 29 44 31 33 34 44 31 33 Chemicals and allied products (26 corps.): Sales 3,563 3 562 4 4S6 860 896 010 952 1 049 1 ,10? 1 ,?63 1 34S 1 381 Profits before taxes 655 673 1 114 140 174 189 205 747 311 3S1 '366 368 Profits after taxes 408 403 560 83 105 115 117 141 176 127 '140 139 Dividends 254 311 438 66 68 113 72 70 11? 174 83 85 Petroleum refining (14 corps.): Sales 3,945 3 865 4,?34 934 942 096 960 080 1 113 1 ,17? 1 904 704 Profits before taxes 721 525 6S? 119 114 131 121 133 188 700 '717 703 548 406 443 92 86 100 87 OS 131 130 172 172 70S 47 31 63 42 4? 44 77 57 55 Durable goods industries Total (106 corps.):* Sales 23,591 73 914 70 740 6,320 6,257 5 717 6,004 7 106 7 8S1 8 188 8 37S 8,779 Profits before taxes 3,107 3,19? S 191 799 866 607 896 1 740 1 403 1 6S? '1 380 1,400 1,836 1 888 ,540 470 508 4?4 494 603 777 S76 S47 Dividends 746 949 1,350 188 184 380 718 370 S41 760 773 Selected industries: Primary metals and products (39 corps.): Sales 9,066 197 10,321 2,175 2,050 1.54? 2,200 S?8 67? 3 044 3 Profits before taxes 1,174 993 1,698 252 228 160 299 400 4SS S44 'S7S 554 Profits after taxes 720 578 853 144 130 100 167 225 255 206 201 211 270 285 377 64 61 80 66 73 80 1S7 88 8S Machinery (27 corps.): Sales 4,554 4 37? s,08? 1,110 1,055 1,101 1,106 1,700 1 ?77 1 408 '1 487 1,571 Profits before taxes 569 520 846 120 119 148 145 168 194 339 '249 236 334 321 422 77 75 01 81 03 108 140 rQ4 9? Dividends 126 136 ?06 32 31 41 49 37 38 83 47 46 Automobiles and equipment (15 corps.): Sales 8,093 0 577 11,805 2,601 2,707 ,118 2,283 ,07S 3 3SS 3 10? 3 768 3 331 Profits before taxes 1,131 1,473 9,306 376 462 337 398 506 6S6 6S6 '514 508 639 861 1,080 218 267 700 215 330 3S8 186 196 704 Dividends 282 451 671 76 80 216 90 91 232 258 122 119 ' Revised. 1 Certain Federal income tax accruals for the first six months of 1950, required by increases in normal and surtax rates and charged by many companies against third quarter profits, have been redistributed to the first and second quarters. Available information does not permit a similar redistribution of accruals charged against fourth quarter profits to cover 1950 liability for excess profits taxes. 2 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). 8 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] Profits Profits Cash Undis- Profits Profits Cash Undis- Year before Income after divi- tributed Quarter before Income after divi- tributed taxes taxes taxes dends profits taxes taxes taxes dends profits 1939 6.5 1.5 5.0 3.8 1.2 1949—2 26.7 10.3 16.4 7.5 8.9 1940 9.3 2.9 6.4 4.0 2.4 3 28.0 10.9 17.1 7.4 9.7 1941 . .. 17.2 7.8 9.4 4.5 4.9 4 27.0 10.5 16.5 8.0 8.5 1942 21.1 11.7 9.4 4.3 5.1 1943 25.1 14.4 10.6 4.5 6.2 31.9 14.4 17.5 7.8 9.7 1 1 1 1 9 9 9 9 4 4 4 4 7 5 6 4 . ... 3 2 2 1 0 3 4 9 . . . . 5 5 3 7 1 1 1 9 1 3 1 . . . . 6 2 5 9 1 1 1 8 0 3 8 . . . . 5 8 9 5 4 4 5 6 . . . . 7 7 8 6 1 6 3 8 2 . . . . 1 8 1 0 2 4 3 4 5 7 5 0 . . . 5 7 3 2 2 1 0 2 6 . . . 5 5 9 2 2 2 5 0 7 . . . 2 6 8 1 9 8 1 . . . 4 4 1 1 1 1 2 5 6 . . . 2 8 7 1948 33.8 13.0 20.7 7.3 13.6 1949 28.3 11.0 17.3 7.6 9.8 1951—1 51.8 28.5 23.3 8.8 14.5 1950 41.4 18.6 22.8 9.2 13.6 2 1 48.5 26.5 22.0 9.5 12.5 1 Figures, except for cash dividends, are estimates of Council of Economic Advisers, based on preliminary data. Source.—Same as for national income series. 1168 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

UNITED STATES GOVERNMENT DEBT—VOLUME AND KINDS OF SECURITIES [On basis of daily statements of United States Treasury. In millions of dollars] Marketable public issues J Nonmarketable public issues End of month T g d r o e o t b s a s t l 1 d d T g i e r o r o b e t s a t c s l t Total« Tre b a il s ls ury c i C e n a d e t d r n e e t s e b i s f 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 a s b a U o v . n i n d S g s . s T t s a r a n e x v o a i t s a n e u n g s r d s yT b i r o n m e n v a e d e s n s s u t — t r - y S i p ss e u c e ia s l i b n N e d te a e o r r b n e in t - s g tseries 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 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 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 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 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 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 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 Dec. 256,981 256,900 165,758 15,136 21,220 11,375 117,863 59,492 52,053 5,384 970 28,955 2,695 1948—June 252.366 252,292 160,346 13,757 22,588 11,375 112,462 59,506 53,274 4,394 959 30,211 2,229 Dec 252,854 252,800 157,482 12,224 26,525 7,131 111,440 61,383 55,051 4,572 955 31,714 2,220 1949—June 252,798 252,770 155,147 11,536 29,427 3,596 110,426 62,839 56,260 4,860 954 32,776 2,009 Dec...... 257,160 257,130 155,123 12,319 29,636 8.249 104,758 66.000 56,707 7,610 954 33,896 2,111 1950—June 257,377 257.357 155,310 13,533 18,418 20,404 102,795 67,544 57,536 8,472 954 32,356 2,148 1950—Aug 257.891 257,874 155,162 13,637 12,817 25,755 102,795 67,897 57,470 8,912 953 32,705 2,110 Sept 257 236 257,216 153,774 13,637 11,620 31,688 96,670 67,798 57,396 8,895 953 33,396 2,247 Oct 256.959 256,937 152,779 13,629 5,373 36,948 96,670 68,413 57,954 8,999 953 33,539 2,206 Nov 257,100 257,077 152,758 13,608 5,373 36,948 96,670 68,398 58,027 8,907 953 33,732 2,189 Dec 256,731 256,708 152,450 13,627 5,373 39,258 94,035 68,125 58,019 8,640 953 33,707 2,425 1951—Jan 256,143 256,125 151,620 13,629 43,800 94,035 68,092 58,017 8,748 953 33,992 2,421 Feb 255,958 255,941 151,625 13,632 43,802 94,035 67,824 57,769 8,730 953 33,933 2,559 Mar 255,018 254,997 151,623 13,630 43,802 94,035 67,405 57,764 8,296 953 33,525 2,444 Apr 254,748 254,727 138,075 13,627 43,802 80,490 80,615 57,652 8,109 14,498 33,590 2,447 May 255,122 255,093 138,041 13,614 43,802 80,469 80,639 57,607 8,158 14,518 34,049 2,364 June.... 255,251 255,222 137,917 13,614 9,509 35,806 78,832 80,281 57,572 7,818 14,526 34,653 2,370 July.... 255,685 255,657 139,279 14,413 9,524 36,360 78,830 79,339 57,538 7,926 13,524 34,707 2,332 Aug 256,677 256,644 139,741 15,012 14,740 31,010 78,827 79,434 57,509 8,041 13,522 35,146 2,323 1 Includes fully guaranteed securities, not shown separately. 2 Includes amounts held by Government agencies and trust funds, which aggregated 3,307 million dollars on July 31, 1951. 3 Total marketable public issues includes Postal Savings and prewar bonds, and total nonmarketable public issues includes adjusted service bonds, depositary bonds, and Armed Forces Leave bonds, 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 AUGUST 31, 1951 [In millions of dollars] [On basis of daily statements o o f f d U o n ll i a te r d s] States Treasury. In millions Month A st m a o n u o d t u - i n n t g Funds receive p d e r fr i o o m d sales during m t R io a e t n d u s e r m i a t n i p e d - s Issue and coupon rate Amount Issue and coupon rate Amount at m e o n n d t h of All Series Series Series All series E F G series Fiscal year Treasury bills * Treasury bonds—Cont. ending: Sept. 6, 1951 1,101 June 15, 1952-54 2 5,825 June—1944.. 34,606 15,498 11,820 802 2,876 2,371 S S e e p p t t . . 2 1 0 3 , , 1 1 9 9 5 5 1 1 1 1 , , 0 0 0 0 1 1 J J u u n n e e 1 1 5 5 , , 1 19 9 5 5 2 2 - - 5 5 5 5 6 ... 2V 2A 1,5 5 0 1 1 0 1 1 9 9 4 4 6 5 . . . . 4 4 9 5 , , 0 5 3 8 5 6 1 9 4 , , 6 8 1 9 2 1 1 6 1 , , 7 5 3 5 9 3 4 6 0 7 7 9 2 2 , , 4 6 6 5 5 8 6 4 , , 7 2 1 9 7 8 Sept. 27, 1951 1,000 Dec. 15, 1952-54 2 8,662 1947.. 51,367 7,208 4,287 360 2,561 5,545 Oct. 4, 1951 1,201 June 15, 1953-552 2 725 1948.. 53,274 6,235 4,026 301 1,907 5,113 O O c c t t . . 1 18 1 , , 1 1 9 9 5 5 1 1 1 1 , , 2 2 0 0 2 2 J M u a n r e . 1 1 5 5 , , 1 19 9 5 5 4 5 - - 5 6 6 0 2 2 . . . . 2 2 V % A 2,6 6 1 8 1 1 1 1 9 9 4 5 9 0 . . . . 5 57 6 , , 5 2 3 6 6 0 7 5 , , 1 6 4 7 1 3 4 3 , , 2 9 7 9 8 3 4 23 7 1 3 2 1 , , 3 44 9 9 0 5 5 , , 0 4 6 2 7 2 Oct. 25, 1951 1,201 Mar. 15, 1956-58... 2 H 1,449 1951.. 57,572 5,143 3,272 347 1,523 6,137 N N o o v v . . 8 1 , , 1 19 9 5 5 1 1 1 1 , , 3 3 0 0 1 0 S S e e p p t t . . 1 1 5 5 , , 1 1 9 9 5 5 6 6 - - 5 5 9 9 2 . . . . . 2 2 % 14 3,8 9 2 82 3 1950—Aug.... 57,470 350 270 11 70 537 Nov. 15, 1951 1,300 June 15, 1958-632. .2% 919 Sept... 57,396 310 244 8 58 475 Nov. 23, 1951 1,101 June 15, 1959-627. . 2 V£ 5,284 Oct.... 57,954 971 271 145 555 496 Nov. 29, 1951 1,101 Dec. 15, 1959-627. .2^ 3,469 Nov.... 58,027 436 246 37 153 448 Dec. 15, 1960-652. . 2 «| 1,485 Dec.... 58,019 541 284 61 197 509 J D u e n c e . 1 1 5 5 , , 1 19 9 6 6 3 2 - - 6 6 8 7 7 7. . . . 2 2 ) ) 4 4 2 2 . , 1 8 1 3 8 1 1951—Jan 58,017 475 343 18 115 653 Certificates June 15, 1964-697. .2% 3,761 Feb.. .. 57,769 386 272 17 97 528 J A u p ly r. 1 1 , , 1 1 9 9 5 5 2 2 1 \ % % 5 9 , , 2 5 1 2 6 4 M D M e a a c r r . . . 1 1 1 5 5 5 , , , 1 1 1 9 9 9 6 6 64 5 6 - - - 6 7 7 9 0 1 7 ? 7. . . . . . 2 2 2 ) ) ^ 4 4 3 5 3 , , , 1 8 4 9 3 8 7 7 0 A M M p a a r y r .. . . . . . . . . 5 5 5 7 7 7 , , , 6 6 7 5 0 6 2 7 4 3 3 2 1 9 5 0 6 9 2 2 2 4 5 8 7 4 0 12 9 8 4 4 6 1 7 7 4 4 5 7 7 6 2 8 0 June 15, 1967-727. .2)4 2,002 June.. . 57,572 290 244 8 38 476 Sept. 15, 1967-72. ..2)4 2,716 July... 57,538 311 258 8 45 482 Treasury notes Dec. 15, 1967-727. 2^ 4,076 Aug... . 57,509 314 267 8 38 437 Oct. 1, 1951 IK 1,918 Maturities and amounts outstanding August 31, 1951 Oct. 15, 1951 1J4 5,941 Postal Savings Nov. 1, 1951 1M 5,253 bonds 2)4 102 Mar. 15, 1954 \% 4,675 Year of All Series Series Series M De a c r . . 1 1 5 5 , , 1 1 9 9 5 5 5 5 W \%2 5 6 , , 3 8 6 5 5 4 maturity series E F G Apr. 1, 1956 \y2 1,004 Panama Canal Loan. 3 50 1951. 977 977 Total direct issues 139,741 1952 3 787 3 787 1953 6,397 5,208 193 997 Treasury bonds 1954. 8,133 5,769 481 1,882 S D e e p c t . . 1 1 5 5 , , 1 19 9 5 5 1 1 - - 5 5 3 5 2 2. . 3 * 3 2U 1,1 7 1 5 8 5 Guaranteed securities 1 1 1 9 9 9 5 5 5 5 6 7. 4 6 5, , , 1 9 9 4 2 3 5 5 8 4 2 2 , , , 3 5 4 0 0 0 7 3 5 4 5 5 6 8 04 7 7 2 2 1 , , ,9 0 2 3 5 5 1 2 1 Mar. 15, 1952-54. .2\i 1,024 Federal Housing Admin. 1958. 5,048 2,634 247 2,167 Mar. 15, 1952-536. .2 7,986 Various 31 1959 4,879 2,738 264 1,878 I960 5,407 2,638 446 2,324 p. 1 2 1 S P 16 o a 4 l r d t . i a o l n ly d t i a s x c o e u x n e t m b p a t s . is. See table on Open-Market Money Rates, 1 1 1 9 9 9 6 6 6 2 3 1. 3 2 , , 1 2 5 6 2 3 7 3 6 1,652 3 2 8 0 8 0 2 8 1 1 , , 3 8 4 0 4 5 7 3 4 3 Called for redemption on Sept. 15, 1951. Unclassified -54 6 * C M a a ll t e u d r i f t o y r S r e e p d t e . m 1 p 5 t , i o 1 n 9 5 o 3 n . Dec. 15, 1951. Total 57,509 34,619 3,858 19,086 • Maturity Dec. 15, 1955. 7 Restricted. SEPTEMBER 1951 1169 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 in (i g n c g lu u d ar - - trust funds 1 Federal Com- Mutual Insur- Other S a t n a d te Individuals Miscela se n t c i t e u e s r e ) i d - S is p s e u c e ia s l P is u s b u l e i s c Total R B e a s n er k v s e m ba e n rc k i s a 2 l s b a a v n in k g s s panies r c a o t r i p o o n - s g m o lo v e c e n a r t l n s - S b a o v n in d g s s se O cu th ri e t r ies in to ve rs s 3 - 1940—June 48,496 4,775 2,305 41,416 2,466 16,100 3,100 6,500 2,100 400 2,600 7,500 700 1941—June 55,332 6,120 2,375 46,837 2,184 19,700 3,400 7,100 2,000 600 3,600 7,600 700 1942—June 76,991 7,885 2,737 66,369 2,645 26,000 3,900 9,200 4,900 900 9,100 8,700 1,100 1943—June 140,796 10,871 3,451 126,474 7,202 52,200 5,300 13,100 12,900 1,500 19,200 11,700 3,400 1944—June 202,626 14,287 4,810 183,529 14,901 68,400 7,300 17,300 20,000 3,200 31,200 14,800 6,400 1945—June 259,115 18,812 6,128 234,175 21,792 84,200 9,600 22,700 22,900 5,300 40,700 18,300 8,900 1946—June 269,898 22,332 6,798 240,768 23,783 84,400 11,500 '24,900 17,700 6,500 43,500 '19,800 8,800 1947—June 258,376 27,366 5,445 225,565 21,872 70,000 12,100 r24,600 13,900 7,100 45,500 '20,700 9,800 Dec 256,981 28,955 5,404 222,622 22,559 68,700 12,000 '23,900 14,100 7,300 46,200 '19,300 8,600 1948—June 252,366 30,211 5,549 216,606 21,366 64,600 12,000 '22,800 13,500 7,800 47,100 '18,400 9,100 Dec 252,854 31,714 5,614 215,526 23,333 62,500 11,500 '21,200 14,300 7,900 47,800 '17,800 9,300 1949—June 252,798 32,776 5,512 214,510 19,343 63,000 11,600 '20,500 15,100 8,000 48,800 '18,100 10,000 Dec 257,160 33,896 5,464 217,800 18,885 66,800 11,400 '20,100 16,300 8,000 49,300 '17,200 9,800 1950—June 257,377 32,356 5,474 219,547 18,331 65,600 11,600 '19,800 18,300 8,200 49,900 '17,700 10,200 Dec 256,731 33,707 5,490 217,533 20,778 61,800 10,900 '18,600 19,900 7,800 49,600 '17,500 10,700 1951—Apr 254,748 33,590 6,274 214,884 22,742 58,500 10,400 '17,400 '21,200 7,900 49,200 '16,800 10,600 May 255,122 34,049 6,281 214,792 22,509 57,900 10,300 '17,300 21,800 8,000 49,100 '16,800 11,000 June 255,251 34,653 6,305 214,293 22,982 58,500 10,200 17,000 20,900 8,000 49,000 16,800 10,900 r Revised. 1 Includes the Postal Savings System. 2 Includes holdings by banks in territories and insular possessions, which amounted to 300 million dollars on Dec. 31, 1950. 3 Includes savings and loan associations, dealers and brokers, foreign accounts, corporate pension funds, and nonprofit institutions. 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. IT. S. 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 - . B s F e e R a e r r e n a d v - l k - e s b C m a c o n i e a m k r l - s - 1 b M s t i a n u a n g v a u 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 n i e e v d s n s t t - . B s F e R e a e r r e a n d v - l k - e s b C m a c o i n e a m k r l - s - 1 b M s i t a n u a n g v a u k s l - - s p I c a n a o n s n m c u i e e - r s - Other funds funds Type of Treasury bonds security: and notes, due or callable: To 1 1 1 ta 9 9 9 l 4 5 4 : 8 2 0 9 — — — D D D J J e e e u u c c c n n e e . . . . . . . . 1 1 1 1 15 5 5 5 5 2 7 5 5 5 , , , , , 4 4 3 1 1 7 9 2 6 3 1 6 5 0 8 5 5 5 5 5 , , , , , 3 3 3 4 3 2 7 6 5 7 7 7 5 0 4 2 2 1 1 1 3 0 8 8 9 , , , , , 3 7 8 3 3 3 7 8 3 4 3 8 5 1 3 5 5 5 5 5 4 8 6 9 5 , , , , , 9 2 8 8 3 7 3 5 9 5 2 7 6 3 3 1 1 1 1 1 0 0 0 0 1 , , , , , 7 8 1 8 0 7 7 4 7 2 2 7 4 7 9 1 1 1 1 1 6 8 8 9 9 , , , , , 8 1 5 8 0 6 3 3 1 9 2 2 5 9 0 4 4 4 4 4 4 1 3 2 4 , , , , , 4 6 7 6 0 3 2 6 6 8 7 9 3 3 7 Wi 1 1 1 t 9 9 h 9 4 i 5 4 n 8 0 9 — — — 1 D D D y J J e e e e u u c c c a n n r e e : . . . . . . . . 3 1 1 1 1 8 0 0 1 4 , , , , , 9 3 2 2 3 0 8 2 1 1 5 7 6 6 9 9 4 3 7 9 8 9 6 0 12,3 9 5 8 8 7 8 0 6 7 3 2 5 1 8 1 5 9 7 7 4 , , , , , 5 0 0 0 6 7 1 2 0 4 1 4 1 1 5 2 2 2 2 1 3 3 3 3 5 6 2 0 8 1 3 3 4 3 9 8 6 2 6 2 5 0 9 8 61 3 2 3 2 0 , , , , , 1 3 5 6 7 2 0 5 2 8 5 0 3 2 5 1951—May.... 138,068 3,249 19,79650,971 8,332 12,36143,359 June. ... 137,944 3,272 20,26851,515 8,254 12,077 42,558 1951—May.... 39,929 33 12,403 13,145 327 1,019 13,002 Treasury bills: June 37,631 49 10,241 15,083 467 1,044 10,747 1948—Dec 12,224 69 5,487 2,794 50 84 3,740 1949—June.... 11,536 63 4,346 2,817 13 60 4,237 1-5 years: Dec 12,319 11 4,829 3,514 15 70 3,880 1948—Dec 44,053 226 3,25828,045 1,769 2,501 8,254 1950—Tune.... 13,533 3 3,856 3,703 35 90 5,846 1949—June.... 39,175 212 2,121 26,304 1,279 2,124 7,135 Dec 13,627 35 1,296 3,888 33 474 7,901 Dec 35,067 186 1,92224,907 1,121 1,641 5,290 1951— J M un a e y . . . . .. .. 1 1 3 3 , , 6 6 1 1 4 4 2 2 4 6 6 5 5 2 5 7 3 2, , 9 7 8 5 1 0 1 1 2 2 7 2 9 8 0 2 4 9 8 8, , 3 9 6 2 0 3 1950— D J e u c ne.... 5 3 1 3 , , 8 3 0 7 2 8 3 1 2 8 7 9 5 1 , , 1 2 1 8 6 5 3 2 3 4 , , 1 5 2 3 7 4 1,0 5 5 6 8 8 1 1 , , 1 7 4 3 2 1 1 5 0 , , 6 4 6 4 0 3 Certificates: 1 19 9 4 4 8 9 — — D J e u c ne.... 2 29 6 , , 4 5 2 2 7 5 2 2 4 6 6 6, . 8 0 5 7 7 8 9 9, , 5 0 6 7 1 2 2 20 5 7 6 6 6 0 7 2 2 1 1 2 0 , , 1 4 7 2 4 3 1951— J M un a e y . . . . .. .. 3 3 1 8 , , 0 3 2 4 2 7 1 13 7 9 3 4 3 . , 4 8 3 7 7 82 2 0 5 , , 8 8 5 1 3 6 4 2 2 2 8 7 1,1 7 0 5 3 6 6 5, , 1 3 6 9 9 0 Dec 29,636 48 6,275 11,520 169 633 10,991 1950— D J e u c ne.... 1 5 8 , , 3 4 7 18 3 (3) 7 5 2, , 3 3 3 5 4 7 5 1 , , 3 5 5 4 4 4 64 7 38 5 2 3 7 1 , ,4 2 3 5 5 4 5— 1 1 1 9 9 0 4 4 y 8 9 — e — ar D J s e : u c ne.... 1 15 0 , , 0 4 6 6 7 4 3 5 1 3 4 2 4 5 3 8 4 4 6 6 , , 3 5 1 8 4 7 2,0 5 0 2 2 0 1,7 9 3 9 2 7 3 1 , , 6 8 3 8 0 5 1951—May Dec 18,537 568 1,388 6,995 2 ,640 2,230 4,716 June.... 9,509 ""17 3,194 '2\ 753 " "37 '287 Y,221 1950—June'.'.'.'. 15^26 423 l!l48 5! 675 2,439 2,055 4,186 Treasury notes: Dec 17,411 412 982 7,329 2,125 1,948 4,615 1948—Dec 7,131 7 791 3,099 84 166 2,984 1949—June.... 3,596 47 359 1,801 41 104 1,244 1951—May.... 15,962 391 1,032 6,238 2,021 1,858 4,422 Dec 8,249 15 562 5,569 107 244 1,752 June.... 15,962 376 1,032 6,273 2,009 1,858 4,414 1950—June.... 20,404 29 3,500 11,204 154 403 5,114 Dec 39,258 10 12,527 15,833 136 707 10,045 After 10 years: Tre 1 a 9 s 5 u 1 ry — J b M u o n a n e y d . . s . . : . . . . 4 3 3 5 , , 8 8 0 0 2 6 1 1 7 4 1 1 5 2 , , 0 4 5 3 1 9 1 1 5 3 , , 5 7 4 0 7 4 1 1 5 2 8 0 8 68 9 7 11 8 2 , , 8 1 4 3 2 8 1 19 9 4 4 8 9 — — D D J e e u c c ne.... 4 4 5 8 5 3 , , , 5 0 8 5 8 3 4 4 8 4 4 4 , , , 7 4 4 1 5 4 0 5 1 3 4 7 . , , 4 5 2 5 1 9 2 5 3 3 3 3 , , , 5 8 9 4 8 3 1 7 3 8 6 7 , , , 5 0 2 8 4 9 8 8 3 1 1 1 3 5 4 , , , 4 2 1 8 3 7 5 0 9 1 1 1 5 3 4 , , , 0 0 2 9 4 9 4 2 0 1948—Dec 111,440 5,340 10,97740,371 10,486 18,89125,375 1950—June.... 45,084 4,482 2,349 4,092 7,130 13,507 13,524 1949—June...-. 110,426 5,201 7,78042,042 10,768 18,31526,320 Dec 43,599 4,682 2,508 2,932 7,180 12,308 13,989 Dec 104,758 5,217 7,218 39,235 10,480 17,57925,029 1950— D J e u c ne.... 1 9 0 4 2 , , 0 7 3 9 5 5 5 5 , , 2 2 8 7 3 3 5 4 , , 6 6 1 2 8 0 3 3 8 3 , , 6 6 9 0 1 7 1 9 0 , , 9 6 6 2 7 4 1 15 7 , , 6 2 1 4 7 92 24 5 , , 9 3 4 4 1 0 1951— J M un a e y . . . . .. .. 3 3 0 0, , 0 0 3 2 2 3 2 2 , , 5 6 9 2 1 9 1 1 , , 2 3 6 9 9 7 2 2 , , 7 7 7 8 2 1 5 5 , , 4 3 2 8 5 9 7 7 , , 4 2 6 9 8 3 1 1 0 0 , , 5 5 0 3 7 4 1951—May.... w80,469 3,171 4,090 32,424 8,043 10,55722,184 June 78,832 3,178 4,108 31,286 7,973 10,26422,023 * 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 Includes stock savings banks. 2 Includes Postal Savings and prewar bonds and a small amount of guaranteed securities, not shown separately below. 3 Less than $500,000. 1170 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 bavsisof dail}* statements of United States Treasury Cash operating Increase (+) or General fund of the Treasurv end of period) income and outgo * decrease (-) during period Assets Budget year or N re e - t Bu ex d - get surplus T a r c u - st C i l n e g ar- a B n a c l e - Deposits in Total Cash i E n x co ce m ss e ceipts p t e u n re d s i- deficit c e o t u c n .1 ts, co ac u - nt1 G d r e o b s t s G ba f e u l n a n e n d r c a e l f g e u i e r n n a n d l - Total s F e R e e r r e a d v - l - e d S c e p i p a e o l - s- O as t s h e e t r s b t l i i i a e li - s - co in m - e o C u a t s g h o ( o + u ) t g o o r banks2 itaries Fiscal year: 1949 38,246 40,057 — 1,811 —495 +366 +478 -1,462 3,470 3,862 438 1,771 1.653 392 41 628^ 57* +1 051 1950 37,045 40,167 -3,122 +99 +483 +4,587 +2,047 5,517 5.927 950 3,268 1,709 410 40 97043 155 —2 185 1951 48,143 44,633 +3,510 +679 -214 -2,135 +1,839 7,357 7,871 338 5,680 1,853 514 S3 43945 804 +7 635 1950—Aug .. 2,860 2,515 +344 + 147 -140 .^333 +685 5,185 5,501 733 3,115 1,654 316 3,524 3,009 +514 Sept.. 4,605 3,520 +1,084 -27 -80 -658 +319 5,505 5,932 1,116 3,065 1,751 428 4,865 3,199 +1,666 Oct.. . 2,056 3,170 -1,114 -17 +49 -279 -1,359 4,145 4,537 569 2,317 1,651 392 2,426 3,335 -909 Nov. . 2,851 «3,102 * -252 4+169 -63 +140 -6 4,139 4,586 714 2,232 1,640 446 3,487 3,415 +72 Dec. 4,211 3,742 +470 +45 -52 -369 +93 4,232 4,724 690 2,344 1,690 492 4,488 4,004 +485 1951—Jan.. . 4,448 3,808 +640 -83 +247 -583 +221 4,454 4,865 807 2,117 1,941 412 4,696 3,438 +1,259 Feb... 4,257 3,211 + 1,047 +227 -161 -184 +929 5,382 5,806 465 3,614 1,726 423 4,877 3,522 +1,356 Mar.. 8,112 4,058 +4,054 -34 +111 -944 +3,187 8,569 8,991 1,120 5,900 1,971 422 8,489 4,219 +4,270 Apr.. . 2,626 4,007 -1,381 -69 +106 -270 -1,614 6,955 7,360 611 5,030 1,719 405 2,960 4,144 -1,184 May.. 3,146 4,517 -1,370 + 136 -304 +366 -1,173 5,782 6,376 666 4,029 1,681 594 4,148 5,154 -1,006 June.. 7,089 5,969 + 1,119 +284 +43 + 129 + 1,574 7,357 7,871 338 5,680 1,853 514 7,367 5,223 +2,144 July.. 2,571 4,739 -2,168 + 11 -14 +435 -1,737 5,620 6,032 584 3,694 1,754 412 2,854 4,843 -1,989 Aug. . 3,594 5,087 -1,493 +83 -103 +988 -525 5,095 5,431 459 3,244 1,727 336 DETAILS OF TREASURY RECEIPTS On basis of daiJj.7 statements of UnitedStates Treasury On basis ofreports by collectors of internarevenue Income taxes Deduct 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 h m d r - s - Other i r n e n c M v t e e e e o l i r l s n 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 O ce r t i e h p - e t r s c T e r o i e p t - a t l s R t e a o f 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 5 l t - y c N e r i e p e - t ts n i i W n n c o t d o s a l i u i d m t x v h r - e i a a h e d s n g e u a c 7 e l a n d e l d w t i v a n i I t i x c n h d o h d u n m e i a o - l l e d t c C o t p i m o t o r a r o n x p e f e o i i a t s n r s n a - - d t t a a g E a x n i s t f e d e - t s l m E a o t n a a x i t s n e x h c c o e d e i e s u s r l e - s Fiscal year: 1949 9,842 19,641 8,348 2,487 2,456 42,774 2,838 1,69038,246 11,743 7,996 11,554 797 7,585 1950 10,073 18,189 8,303 2,892 1,853 41,311 2,160 2,10637,045 11,762 7,264 10,854 706 7,599 1951 13,53524,218 9,423 3,940 2,253 53,369 2,107 3,12048,143 15,901 9,908 14,388 730 8,704 1950—Aug 1,423 345 948 340 181 3,238 62 316 2,860 2,323 98 212 67 894 Sept 819 2,816 775 315 117 4,842 52 185 4,605 103 1,012 1,823 50 697 Oct 514 591 808 186 202 2,300 62 181 2,056 974 183 403 51 763 Nov.... 1,620 320 746 310 187 3,184 45 288 2,851 2,336 103 213 47 712 Dec 988 2,175 764 377 169 4,474 23 239 4,211 267 257 1,907 44 679 1951—Jan «680 2,709 853 6 149 230 4,621 42 131 4,448 829 2,527 297 80 820 Feb 2,044 1,281 797 527 171 4,820 189 374 4,257 3,105 1,028 151 54 730 Mar.... 1,273 6,152 838 395 152 8,811 459 239 8,112 409 2,093 4,316 129 682 Apr.. . . 578 1,688 690 157 177 3,289 513 150 2,626 935 989 499 59 635 May. .. 2,038 482 747 555 217 4,039 359 534 3,146 3,509 194 244 58 713 Tune. . . 1,123 5,065 719 425 270 7,603 234 280 7,089 256 1,195 3,908 47 660 July. . . 726 983 722 177 225 2,833 88 175 2,571 1,158 321 596 56 709 Aug P2.131 404 806 228 4,165 55 516 3,594 DETAILS OF BUDGET EXPENDITURES AND TRUST ACCOUNTS On basis of daily statements of United StatesTreasury Budget expenditures Trust accounts, etc. F o i r s c m al o y n e th ar Total N de a f t e io n n se al 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 r m 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 l d 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 ce R i e p S - t o s c a ia c m l v c I e o S e n s u n - e t n - t c s t u s ri p t t u E e y n r x e d - s i- ce R i e p - ts O m v I e t e n h s n - e t- t r s p tu E e r n x e d - s i- Fiscal year: 1949 40,057 12,158 5,339 6,016 6,791 2,656 916 6,181 3,722 1 ,479 2,252 1,992 832 1,646 1950 40,167 12,378 5,750 4,657 6,044 2,984 1 ,383 6,970 4 ,293 1 ,028 3,114 2,376 -1.430 3,857 1951 44,633 19,958 5,613 4,431 5,238 636 972 7,786 5,631 2,685 2,790 2,165 872 771 1950—Aug 2,515 1,149 134 254 464 -113 28 598 630 277 186 96 -60 176 Sept 3,520 1,037 646 299 400 -220 646 712 544 424 164 413 357 40 Oct 3,170 1,338 229 360 457 -45 84 747 300 157 214 192 -9 146 Nov 43,102 1,446 142 321 465 96 9 624 549 '207 219 132 4 -15 101 Dec 3,742 1,510 968 252 437 23 6 546 288 7 241 91 33 53 1951—Jan. 3,808 1,651 514 334 462 115 73 658 414 233 278 157 194 -50 Feb 3,211 1,695 156 328 417 (8) 9 606 582 194 258 125 15 14 Mar 4,058 2,057 580 346 454 68 2 552 280 101 259 150 27 77 Apr. 4,007 2,160 253 392 427 104 82 589 283 83 255 184 24 173 May 4,517 2,396 163 487 424 91 1 955 928 510 266 127 -23 166 June 5,969 2,495 1,557 785 383 92 (8) 655 570 346 261 433 317 -205 July 4,739 P2,930 232 P318 433 40 67 P717 293 128 264 117 -22 28 Aug 5,087 P3,030 222 P372 419 ?103 P34 P9O7 919 526 291 160 -66 245 P Preliminary. x lixcess oi receipts (+) or expenditures (—). 2 Excludes items in process of collection. s For description, see Treasury Bulletin for September 1947 and subsequent issues. 4 Beginning November 1950, net investments of wholly owned Government corporations in public debt securities are excluded from budget expenditures and included in trust account investments. 5 These are appropriated directly to the Federal old-age and survivors insurance trust fund. 6 Beginning January 1951, Treasury reports combine income taxes withheld and employment taxes. Figures shown for withheld income taxes exclude, and figures shown for social security taxes include, employment taxes as indicated by amounts appropriated to Federal old-age and survivors insurance trust fund. 7 Beginning January 1951, old-age insurance employment taxes are not reported separately. Figures for prior periods have been combined for purpose of comparison. 8 Less than $500,000. SEPTEMBER 1951 1171 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 1 Li i a n b t i e li r t a i g es e , n o cy th e it r e m th s an Corporation or agency Total Cash L c a r e o b e i a l - v e n - s m m C p s r t a l i i u o o a n i e a p e m t d d s l e - s s , i , - - - G U s ri e o t . c i v I e u S m n s t - . . v e e n O r s s t i s t e t - t i c h e u e s - r 2 L e s t m u t a q a r r n e u n u e n d i c d s p t - , , - O s a t e s h t - s er a t B F g n u a u u b o t r n a e y l e n d l r e s d y - d s d p , e a n O b y o e a t t h n b e e - l s e r , O li i a t t i b h e i e s l r - i U m G n e e r . t o e s e n n v t S r - t - - . o i v n P w a e t r s t e n i e t - r e l - y d U. S. All agencies: June 30, 1950 24,118 47412,502 2,186 2,101 3,483 2,924 450 774 1,446 21,679 201 Sept. 30, 1950 24,102 59812,769 1,739 2,112 3,478 2,931 476 1,108 970 21,791 214 Dec. 31, 1950 24,635 642 13,228 1,774 2,075 3,473 2,945 499 1,190 1,19321,995 234 Mar. 31, 1951 25,104 71513,496 1,764 2,162 3,467 2,951 549 1,247 1,234 22,337 268 Classification by agency, Mar. 31, 1951 Department of Agriculture: Farm Credit Administration: Banks for cooperatives 404 332 116 264 22 Federal intermediate credit banks 697 633 624 67 Production credit corporations 60 15 58 Agricultural Marketing Act Revolving Fund 2 1 2 Federal Farm Mortgage Corp 39 2 36 1 38 Rural Electrification Administration ,664 33 1,591 () 40 () 1,664 Commodity Credit Corporation ,656 9 755 1,565 112 215 474 2,182 Farmers' Home Administration 4 606 127 452 26 3 602 Federal Crop Insurance Corp 34 32 2 3 31 Housing and Home Finance Agency: Home Loan Bank Board: Federal home loan banks 993 752 215 506 231 10 245 Federal Savings and Loan Insurance Corp. 203 197 5 198 Home Owners' Loan Corp 16 () 14 Public Housing Administration 8 ,733 406 "(3)* 1,249 16 1,717 Federal Housing Administration 374 21 251 1 182 175 Office of the Administrator: Federal National Mortgage Association.. ,538 ) 1,525 ) 1,536 Other 74 10 19 40 73 Reconstruction Finance Corporation: Assets held for U. S. Treasury 8 771 1 137 589 771 Other 7 898 776 78 820 Export-Import Bank 2,283 () 2,267 62 2,221 Federal Deposit Insurance Corp 1,382 1,367 118 1,263 Tennessee Valley Authority 1,088 155 () 913 25 1,063 All other * 7,591 158 3,929 (I) 3,385 45 23 7,568 CLASSIFICATION OF LOANS BY PURPOSE AND AGENCY Mar. 31, 1951 Purpose of loan M F C F a o e o r r d r m p . t. . b c i m F n r a a e e e t n t e d d d e k r i i . - s - t f o B t o i p a r v e n e c r k s a o s - - 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 l d o i e r m c n c a a - l . - F A H e a d o r r s m m m ' . e - N M A F g a a s a e t o i g s l d r o n e t - n - . - 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 o n u i r o - n c c p n e - . - B p p I E o a m o x r n r t - - t k - o A th l e l r a c g A i e e l n l s - a D g 1 e e c 9 a n . 5 l c l 0 3 i , e 1 s , To aid acriculture 42 633 334 759 1,593 564 6 3,931 3,884 1,525 3 133 60 1,721 1,528 To aid industry: 106 2 108 110 Other (?) 416 57 473 458 To aid financial institutions: Banks 8 Other 752 8 760 824 Foreign loans 91 2,275 6,116 6,078 Other 404 56 3,750 564 531 Less: Reserve for losses 6 2 4 1 112 1 35 7 10 9 5 178 185 Total loans receivable (net)... 36 633 332 755 1,591 452 1,525 406 752 776 2,267 3,971 13,496 13,228 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. 6 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 as of Feb. 28, 1951. 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. Forvback; figures see earlier issues of the BULLETIN and Banking and Monetary Statistics, Table 152, p. 517. 1172 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 Tot I a ( n l p d h u 1 y s 9 s t i 3 r c i 5 a a - l D l 3 v f u 9 p M a - o r = c o l a u t d u 1 n m u r 0 u N e c e d 0 - s t o ) u i * n o - - n * M era in ls - To a t w a 1 C l a 9 o c r 2 d n o 3 e s R n d - d t t t e e 2 i r r a u n s 5 a ( l i - c c v = - t t a 1 i s o l 0 u n o 0 e A t ) h 2 l e l r N t a c u g u o r r l a n E i - l - - m 19 p 3 lo 9 F y = m a 1 c 0 e t 0 o n r t y 3 1 r F 9 p t o 1 o 3 a a l 0 l 9 r y c s 0 y - - = 3 c 1 F a 9 i = r n r 3 e l g 1 o 5 i 0 s g a - * 0 3 d h 9 - t 1 D u 9 m s = s ( e e 3 t v a ) p o e 1 5 l a a e n r 0 * - l 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 ' p W m = c 1 r s i o o 9 h a c 1 m 2 d l o e 0 e 6 i s l - 0 t e y rable rable 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 ? 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 82 235 131.1 156.9 241.5 138 150 116.6 98.8 1943 239 360 176 132 68 40 92 138.8 183.3 331.1 137 168 123.7 103.1 1944 235 353 171 140 41 16 61 137 0 178 3 343 7 140 187 125 7 104 0 1945 203 274 166 137 68 26 102 132.3 157.0 293.5 135 207 128.6 105.8 1946 170 192 165 134 153 143 161 136.7 147.8 271.7 132 264 139.5 121.1 1947 187 220 172 149 157 142 169 143.2 156.2 326.9 143 286 159.6 152.1 1948 192 225 177 155 190 162 214 145 9 155 2 351 4 138 302 171 9 165 1 1949 176 202 168 135 211 192 226 142.0 141.6 325.3 116 286 170.2 155.0 1950 P200 P237 *>187 P148 295 305 287 145.7 149.7 371.8 128 304 171.9 161.5 1949 September . .. 174 178 199 172 119 246 254 240 142 0 141 1 143 7 335 1 105 289 170 7 153 "5 October 166 169 175 177 112 263 269 259 139.1 136.3 138.8 320.9 92 277 169.7 152.2 November 173 174 181 177 141 265 256 273 140.1 136.3 137.8 313.9 117 278 169.8 151.6 December 179 178 203 176 132 262 255 268 141.2 139.3 140.4 329.3 115 295 168.8 151.2 1950 January 183 179 209 179 130 242 245 239 140.7 140.5 139.8 329.2 117 282 168.2 151 .4 February 180 177 207 180 118 263 260 266 139.6 140.2 139.9 330.0 104 280 167.9 152.8 IVtarch. 187 183 211 181 144 275 278 274 141.2 141.3 141.0 333.5 127 274 168.4 152.7 April 190 188 222 180 140 284 298 273 142.7 143.2 141.6 337.2 126 292 168.5 152.8 May 195 195 231 181 145 274 303 250 143 9 147 1 144 5 348 0 122 290 169 ^ 1 55 9 June 199 200 237 184 151 291 325 262 145.3 148.9 147.3 362.7 127 297 170.2 157.3 July 196 198 235 181 144 325 369 289 146.1 150.9 148.3 367.5 126 362 172.0 162.9 S A e u p g t u em st ber 2 21 0 1 9 2 2 1 1 2 6 2 25 4 1 7 1 1 9 9 5 4 1 1 5 6 9 3 3 32 3 1 4 3 3 6 3 2 2 3 31 1 2 1 1 14 4 9 8 . . 2 3 1 1 5 5 5 6 . . 0 0 1 15 5 8 6 . . 9 3 3 4 9 03 4 . . 2 4 1 1 3 3 5 4 3 3 3 2 5 0 1 1 7 7 3 4 . . 4 6 1 1 6 6 6 9 . . 4 5 October 216 220 261 196 166 299 294 303 149 9 157 7 160 3 415 8 136 291 175 6 169 1 November 215 215 260 195 160 306 284 323 150.2 157.7 159.2 414.6 136 290 176.4 171.7 December 218 216 268 197 157 332 297 360 150.6 158.1 159.4 426.0 140 325 178.8 175.3 1951 January 221 216 268 201 164 333 312 350 151.2 159 7 158 9 424 0 146 362 181 S 180 I February 221 217 271 201 158 323 311 334 152.1 161.3 161.0 430.0 129 326 183.8 183.6 March 222 219 277 199 158 304 292 314 152.8 161.4 161.0 435.0 139 291 184.5 184.0 April 223 222 279 198 164 373 283 446 '153.2 161.7 160.0 '433.2 136 302 184.6 183.6 May 223 223 276 198 165 361 276 430 153 6 161 4 158.7 r428 8 133 301 185 4 182 9 June 222 223 275 197 166 374 289 443 153.9 161.1 159.4 435.7 131 302 185.2 '181 8 July P213 P214 P263 P190 P157 303 298 306 P153.7 *>160.1P157.4 *425.2 125 309 185.5 179.5 August .. *218 •215 «27O 163 133 "316 * Average per working day. e Estimated. P Preliminary. r Revised. 1 For indexes by groups or industries, see pp. 1174-1177. For points in total index, by major groups, see p. 1196. 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. 1181. 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. The consumers' price index is the adjusted series, reflecting: (1) beginning 1940, allowances for rents of new housing units and (2) beginning January 1950, interim revision of series and weights. Nonagricultural employment covers employees only and excludes personnel in the armed forces. 4 For indexes by Federal Reserve districts and other department store data, see pp. 1183-1186. 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. 1173 SEPTEMBER 1951 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] 1950 1951 Industry July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Industrial Production—Total 196 209 211 216 215 218 221 221 222 223 223 222 P213 Manufactures— Total 206 218 220 225 224 229 231 232 234 234 233 232 P222 Durable Manufactures 235 247 251 261 260 268 268 271 277 276 275 P263 Iron and Steel1 ..... 228 236 245 253 246 253 255 252 263 264 263 261 253 Pig iron 223 219 223 225 211 216 224 217 228 231 234 r235 230 Steel 264 265 275 286 272 280 " 288 281 298 301 301 296 293 Open hearth 201 198 203 209 198 207 212 206 217 218 217 213 215 Electric . . . . 710 744 792 835 803 802 827 815 879 891 897 884 850 265 279 283 303 311 321 322 328 335 T337 r337 339 P327 Transportation Equipment 272 287 284 291 278 292 285 304 314 '311 r309 307 P283 Automobiles (including parts) 262 273 265 271 249 260 246 262 265 r248 239 P209 (Aircraft; Railroad Equipment; Shipbuilding — Private and Government)2 Nonferrous Metals and Products 202 212 216 223 226 227 224 217 209 210 '205 204 P202 Smelting and refining 208 212 209 217 221 218 219 222 225 225 224 221 P220 (Copper smelting; Lead refining; Zinc smelting; Aluminum; Magnesium; Tin)2 Fabricating 199 212 219 225 228 230 226 215 202 204 197 197 P195 (Copper products; Lead shipments; Zinc shipments; Aluminum products; Magnesium products; Tin consumption)2 Lumber and Products .. . 151 165 166 166 169 173 171 169 169 170 163 154 P141 Lumber 140 151 150 150 155 162 162 156 156 162 158 147 131 Furniture 174 192 196 198 197 195 190 193 195 185 173 166 P160 Stone Clay, and Glass Products 212 212 215 229 227 235 236 237 243 247 235 238 P238 Glass products 225 206 212 245 235 247 240 243 251 270 242 250 P259 Glass containers 244 215 225 262 247 265 257 261 269 292 257 269 285 Cement . . 208 214 206 214 214 232 238 245 252 243 231 235 226 Clay products 161 167 169 168 175 173 191 186 189 189 184 186 Other stone and clay products ?. Nondurable Manufactures 181 195 194 196 195 197 201 201 199 198 198 197 Textiles and Products 165 189 191 197 193 194 194 194 188 185 190 185 P162 Textile fabrics , . . . . 146 172 171 178 173 173 174 176 171 165 169 164 Cotton consumption 123 155 152 162 158 158 163 174 175 153 164 157 123 Rayon deliveries 361 366 380 374 381 397 392 390 374 380 377 '•378 380 Nylon and silk consumption 2 Wool textiles 134 172 171 180 164 160 156 144 133 146 144 137 Carpet wool consumption . 135 210 204 228 204 201 180 181 169 131 101 87 139 178 170 179 148 140 151 140 128 158 163 153 Wool and worsted yarn . . 127 159 158 163 146 141 142 133 123 140 141 135 Woolen yarn . . . 117 144 137 142 122 121 121 119 111 116 120 119 Worsted yarn 140 179 187 192 180 169 173 152 140 174 171 157 Woolen and worsted cloth . . . 143 168 172 180 172 169 163 143 130 159 163 159 Leather and Products 101 120 124 115 109 108 115 122 118 106 97 99 Leather tanning 91 108 111 106 108 106 107 112 105 97 88 89 Cattle hide leathers 106 121 125 119 121 120 120 126 119 110 104 110 Calf and kio leathers 56 83 91 84 89 84 77 88 80 78 56 51 Goat and kid leathers 80 86 84 88 96 88 94 96 93 87 80 73 Sheep and lamb leathers 76 101 104 94 81 87 98 o? 83 69 55 50 Shoes 107 128 133 121 110 109 121 128 127 112 103 106 Manufactured Food Products 167 168 167 162 161 165 168 166 167 168 166 165 P166 Wheat flour 113 116 103 100 107 116 128 119 110 108 109 103 ^109 Cane sugar meltings2 Manufactured dairy products ... . 152 150 148 145 143 141 142 142 146 147 148 150 P150 Butter 85 80 78 75 72 70 73 71 72 74 72 75 77 Cheese 178 169 161 158 164 167 170 169 176 177 174 183 180 C Ic a e n c n r e e d a m a n 2 d dried milk 167 169 158 150 142 131 131 135 152 156 164 168 169 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 methods y be obtained from the Division of Research and Statistics. 5Series included in total and group indexes but not available for publication separately. 1174 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] 1950 1951 Industry July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Manufactured Food Products—Continued Meat packing 151 155 168 158 165 171 162 148 159 163 149 145 152 Pork and lard 169 175 196 188 195 202 188 171 194 208 181 188 187 Beef 146 145 153 138 148 155 152 141 139 134 134 110 126 Veal . . . 114 121 120 107 108 104 93 88 82 79 79 95 107 Lamb and mutton 78 78 78 77 76 77 80 66 62 59 52 66 70 Other manufactured foods.. . 175 176 174 171 168 172 176 176 177 177 175 174 Processed fruits and vegetables... ... 147 134 142 147 149 142 161 158 176 '169 166 161 P147 Confectionery 146 158 146 125 125 147 148 138 127 128 132 131 Other food products 187 190 187 184 181 184 185 188 186 '187 185 185 P189 Alcoholic Beverages 206 248 203 182 207 208 248 225 207 187 179 178 175 Malt liquor 171 168 155 150 183 168 185 166 169 161 157 155 163 Whiskey 84 111 146 157 178 157 155 135 150 118 117 104 78 Other distilled spirits 611 934 549 308 235 463 716 658 677 706 560 604 474 Rectified liquors 315 464 340 304 341 340 439 408 240 148 174 174 197 Tobacco Products 154 197 172 165 171 153 177 179 170 177 172 171 161 Cigars 96 126 120 124 127 89 101 107 100 104 105 115 98 Cigarettes 212 269 229 215 227 215 248 249 238 248 239 233 225 Other tobacco products 59 80 71 72 65 56 70 69 62 66 64 66 57 Paper and Paper Products 173 191 194 202 201 197 204 207 208 214 212 209 P191 Paper and pulp. . . 166 181 185 193 191 189 192 197 198 204 200 199 Pulp 202 211 213 228 220 218 220 228 229 241 233 235 Groundwood pulp . , 119 124 133 127 109 125 117 119 116 116 115 123 Soda pulp 110 115 114 96 92 92 94 98 94 100 99 98 Sulphate pulp 372 381 382 427 414 402 412 430 438 461 445 450 Sulphite pulp 140 152 152 162 161 157 158 161 162 172 164 164 Paper 161 177 180 188 186 184 188 193 193 198 195 193 P179 Paperboard 198 228 232 238 240 229 247 245 248 253 256 247 217 Fine paper a Printing paper 156 174 180 187 183 188 181 192 189 194 186 183 P175 Tissue and absorbent paper 182 183 185 207 196 202 206 205 208 224 207 204 P206 Wrapping paper 151 155 156 164 163 165 159 172 171 172 170 177 P167 Newsprint 117 116 116 117 112 117 117 120 119 119 121 127 123 Paperboard containers (same as Paperboard) Printing and Publishing 162 169 172 179 174 175 170 177 176 183 176 173 P171 Newsprint consumption 167 165 163 171 165 162 159 162 162 171 166 163 166 Printing paper (same as shown under Paper) Petroleum and Coal Products 229 238 243 251 253 263 272 269 269 255 '263 264 P264 Petroleum refining 2 Gasoline 194 200 195 196 195 197 702 198 199 193 207 212 P211 Fuel oil 187 190 200 210 209 225 238 238 227 204 210 215 Lubricating oil 154 174 177 184 187 188 192 179 190 189 193 194 O K t e h r e o r s e p n e e troleum products 2 .. 186 194 198 195 195 208 237 230 230 221 201 205 Coke 176 176 178 183 178 182 187 183 184 185 186 187 183 Bv-product coke 170 167 170 175 170 174 177 174 176 178 178 179 178 Beehive coke 368 470 443 467 436 457 522 487 475 433 456 '476 387 Chemical Products. . 263 269 271 277 280 284 287 288 292 298 302 P306 Paints 161 168 168 164 162 160 163 168 166 164 r160 161 Rayon 359 363 376 371 378 385 387 384 374 377 378 385 391 O In t d h u er s tr c i h a e l m c i h c e a m l i p c r a o l d s ucts 2 453 458 465 488 497 504 506 510 524 r532 r539 548 P558 Rubber Products 222 236 244 250 250 251 244 235 239 238 247 255 P248 Minerals—Total 144 159 163 166 160 157 164 158 158 164 165 166 P157 Fuels 148 162 167 170 165 163 169 163 163 167 168 169 Coal 101 133 133 141 127 130 140 118 111 120 118 123 97 Bituminous coal 109 142 144 151 138 143 151 125 127 133 126 133 105 Anthracite 68 97 92 102 84 80 96 89 48 64 83 86 66 Crude petroleum 171 177 184 184 184 178 184 185 189 191 192 191 P191 Metals 124 136 141 141 130 126 130 131 127 140 151 146 P135 Metals other than gold and silver... . 167 188 198 199 180 173 180 181 176 199 216 209 Iron ore (Copper; Lead; Zinc)2 Gold 62 60 59 59 59 57 57 55 56 54 56 Silver 73 85 73 73 70 77 78 80 77 77 76 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. SEPTEMBER 1951 1175 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] 1950 1951 Industry July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Industrial Production—Total 198 212 216 220 215 216 216 217 219 223 223 P214 Manufactures — Total . 207 221 224 229 226 227 226 228 231 232 '232 232 P223 Durable Manufactures . . 237 249 253 263 260 266 264 268 275 278 277 276 Iron and Steel1 ..... 228 236 245 253 246 253 255 252 263 264 263 261 253 Pig iron 223 219 223 225 211 216 224 217 228 231 234 '235 230 Steel 264 265 275 286 272 280 288 281 298 301 301 296 293 Open hearth . . . 201 198 203 209 198 207 212 206 217 218 217 213 215 Electric 710 744 792 835 803 802 827 815 879 891 897 884 850 Machinery 265 279 283 303 311 321 322 328 335 '337 '337 339 P327 Transportation Equipment ... . 272 287 284 291 278 292 285 304 314 '311 '309 307 P283 Automobiles (including parts) 262 273 265 271 249 260 246 262 265 r255 r248 239 (Aircraft; Railroad equipment; Shipbuilding—Private and Government)' Nonferrous Metals and Products 202 212 216 223 226 227 224 217 209 210 '205 204 v<?0? Smelting and refining 207 212 209 217 221 219 220 222 225 225 224 220 P219 (Copper smelting; Lead refining; Zinc smelting; Fabricating 199 212 219 225 228 230 226 215 202 204 197 197 P195 (Copper products; Lead shipments; Zinc shipments; Aluminum products; Magnesium products; Tin Lumber and Products .. . 161 177 179 176 168 158 153 154 160 169 168 164 P151 Lumber • 155 170 170 165 153 140 134 134 141 161 165 163 146 Furniture .... 174 192 196 198 197 195 190 193 195 185 173 166 P160 Stone Clay and Glass Products 214 221 223 240 233 227 223 221 232 243 241 241 P24O Glass products 217 212 215 251 237 233 236 237 251 270 255 248 P250 Glass containers . ... 234 223 229 269 250 246 251 253 269 292 275 266 273 Cement 229 242 239 249 231 211 193 186 207 231 242 251 248 Clay products 162 172 175 177 182 178 178 176 180 183 184 185 P183" Other stone and clav nroducts ^ Nondurable Manufactures. . 182 198 201 201 197 196 196 196 194 195 197 197 pin Textiles and Products 165 189 191 197 193 194 194 194 188 185 190 185 vl62 Textile fabrics 146 172 171 178 173 173 174 176 171 165 169 164 Cotton consumption 123 155 152 162 158 158 163 174 175 153 164 157 123 Rayon deliveries 361 366 380 374 381 397 392 390 374 380 377 '378 380 Nvlon and silk consumntion ^ Wool textiles . ... 134 172 171 180 164 160 156 144 133 146 144 137 Carpet wool consumption 135 210 204 228 204 201 180 181 169 131 101 87 Apparel wool consumption 139 178 170 179 148 140 151 140 128 158 163 153 Woolen and worsted yarn 127 159 158 163 146 141 142 133 123 140 141 135 Woolen yarn 117 144 137 142 122 121 121 119 111 116 120 119 Worsted yarn 140 179 187 192 180 169 173 152 140 174 171 157 Woolen and worsted cloth 143 168 172 180 172 169 163 143 130 159 163 159 Leather and Products 99 119 123 115 111 107 116 125 118 106 97 98 Leather tanning 87 106 109 107 111 106 108 120 104 97 88 86 Cattle hide leathers 100 117 122 120 126 120 123 136 119 110 104 105 Calf and kip leathers 56 88 89 86 91 82 76 93 79 75 54 52 Goat and kid leathers 79 84 85 88 93 89 94 100 92 89 78 74 Sheep and lamb leathers 71 104 102 94 85 83 91 101 80 68 59 50 Shoes 107 128 133 121 110 109 121 128 127 112 103 106 Manufactured Food Products 178 189 190 17 3 163 161 155 149 149 152 '159 165 P177 Wheat flour 112 114 112 107 108 115 128 120 107 103 104 99 P108 Manufactured dairy products 223 195 156 119 94 90 90 101 120 153 196 221 P22\ Butter 104 87 74 64 55 55 61 63 65 75 93 104 94 Cheese 219 189 164 142 123 121 126 139 158 184 233 259 221 Canned and dried milk 193 174 145 122 102 101 106 121 149 176 228 232 196 p Preliminary. r Revised. * 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. 1176 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] 1950 1951 Industry July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. VI ay Tune July Manufactured Food Products—Continued Meat packing 141 134 152 158 184 203 193 142 147 150 149 144 141 Pork and lard 148 135 155 177 228 267 247 168 180 189 181 188 165 Beef 147 147 165 151 154 155 155 129 127 126 134 107 127 Veal 114 119 132 122 116 98 86 77 77 78 82 95 107 Lamb and mutton 75 76 84 80 76 75 85 67 60 57 53 62 67 Other manufactured foods 182 202 206 189 175 169 162 159 156 157 159 165 182 Processed fruits and vegetables 191 254 276 190 137 111 105 100 97 103 108 124 191 Confectionery 120 171 189 164 147 148 152 139 118 106 102 97 Other food products 190 194 191 193 190 188 178 178 178 180 182 187 193 Alcoholic Beverages 219 237 217 205 195 189 211 198 185 175 180 191 190 Malt liquor 214 191 156 139 141 134 151 149 157 169 179 195 204 84 111 146 157 178 157 155 135 150 118 117 104 78 Other distilled spirits 354 504 753 798 493 509 466 394 440 424 336 374 275 Rectified liquors 315 464 340 304 341 340 439 408 240 148 174 174 197 Tobacco Products 160 204 181 170 174 142 177 170 161 167 172 178 167 Cigars 96 126 120 124 127 89 101 107 100 104 105 115 98 Cigarettes . . 223 283 245 224 231 198 248 234 222 231 239 245 236 Other tobacco products 59 78 76 77 67 50 69 67 62 66 65 67 57 Paper and Paper Products 172 191 194 202 201 197 203 208 208 215 212 209 P190 Paper and pulp 166 181 184 193 191 188 192 198 198 205 201 199 Pulp 200 209 211 227 221 218 221 228 231 243 234 235 Groundwood pulp 105 110 119 119 115 126 121 124 124 128 124 124 Soda pulp 110 115 114 96 92 92 94 98 94 100 99 98 Sulphate pulp . . 372 381 382 427 414 402 412 430 438 461 445 450 Sulphite pulp 140 152 152 162 161 157 158 161 162 172 164 164 Paper 160 177 180 188 186 184 188 194 193 199 195 194 P178 Paperboard 198 228 232 238 240 229 247 245 248 253 256 247 217 Printing paper 156 174 180 187 i83 188 181 192 189 194 186 183 P175 Tissue and absorbent paper 174 183 185 209 196 196 204 214 208 226 207 208 p\97 Wrapping paper 151 155 156 164 163 165 159 172 171 172 170 177 P167 Newsprint 115 115 116 117 113 114 117 120 119 121 122 129 121 Printing and Publishing 150 161 172 183 182 179 164 176 179 188 179 172 P159 Newsprint consumption 144 148 165 180 180 170 148 159 169 181 172 161 143 Petroleum and Coal Products 229 238 243 251 253 263 272 269 269 255 r263 264 P264 Gasoline 194 200 195 196 195 197 202 198 199 193 207 212 P211 Fuel oil 187 190 200 210 209 225 238 238 227 204 210 215 P215 Lubricating oil 153 173 177 184 187 187 186 177 188 197 201 194 Kerosene 173 187 196 195 201 214 241 241 235 226 203 193 Coke 176 176 178 183 178 182 187 183 184 185 186 187 183 By-product coke 170 167 170 175 170 174 177 174 176 178 178 179 178 Beehive coke 368 470 443 467 436 457 522 487 475 433 456 '476 387 Chemical Products 259 265 272 282 284 288 288 291 296 *298 298 300 P302 Paints 159 166 166 164 160 160 160 166 165 165 "165 165 P166 359 363 376 371 378 385 387 384 374 377 378 385 391 Industrial chemicals 453 458 465 488 497 504 506 510 524 '532 '•539 548 P558 Rubber Products 222 236 244 250 250 251 244 235 239 238 247 255 P248 Minerals—Total 149 163 168 169 159 153 159 153 153 162 168 169 P162 Fuels 148 162 167 170 165 163 169 163 163 167 168 169 P160 Coal 101 133 133 141 127 130 140 118 111 120 118 123 97 Bituminous coal 109 142 144 151 138 143 151 125 127 133 126 133 105 Anthracite 68 97 92 102 84 80 96 89 48 64 83 86 66 Crude petroleum 171 177 184 184 184 178 184 185 189 191 192 191 P191 Metals 158 170 171 161 124 93 94 94 92 129 166 172 P167 Metals other than gold and silver 227 244 244 227 166 115 118 121 118 184 248 256 *>248 Iron ore 343 368 365 331 195 86 97 93 89 231 365 392 384 Gold 61 65 68 69 66 59 55 50 49 48 49 Silver 72 83 74 73 70 77 78 81 80 78 76 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. 1177 SEPTEMBER 1951 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. In thousands of persons] 1950 1951 Industry group or industry July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July ADJUSTED FOR SEASONAL VARIATION Manufacturing—Total 12,358 12,697 12,783 12,921 12,915 12,953 13,083 13,214 13,218 13,249 13,223 13,198 13,117 Durable goods . . 6,713 6,939 6,996 7,135 7,155 7,193 7,249 7,352 7,395 '7,449 '7,460 7,443 7,371 Primary metal industries 1,070 1,091 1,105 1,111 1,120 1,131 1,143 1,147 1,153 rl,161 '1,173 1,175 1,181 Fabricated metal products 793 826 837 846 846 839 839 844 850 '•855 859 852 832 Machinery except electrical 1,042 1,071 1,055 1,110 1,139 1,157 1,192 1,209 1,219 '1.233 '1,240 1,250 1,248 Electrical machinery 639 672 676 703 710 710 704 709 717 r7l8 '716 709 695 Transportation equipment 1,070 1,118 1,134 1,157 1,139 1,160 1,175 1,233 1,253 '1,243 '1,231 1,232 1,218 Lumber and wood products 750 764 775 773 765 758 754 755 733 '763 '770 770 755 Furniture and fixtures 316 324 325 323 319 320 316 318 323 '319 '310 297 294 Stone, clay, and glass products.. 447 457 456 469 475 469 478 475 479 483 484 485 482 Instruments and related products 184 189 199 204 208 209 210 214 216 220 222 223 225 Miscellaneous manufacturing industries . . 383 407 412 417 411 416 413 421 423 '424 423 416 405 Ordnance and accessories 19 20 22 22 23 24 25 27 29 30 32 34 36 Nondurable goods 5,645 5,758 5,787 5,786 5,760 5,760 5,834 5,862 5,823 '5,800 '5,763 5,755 5,746 Textile-mill products 1,196 1,243 1,268 1,264 1,250 1,239 1,245 1,250 1,211 1,214 1,212 1,199 1,197 Apparel and other finished textiles 1,044 1,073 1,067 1,063 1,046 1,048 1,070 1,083 1,074 1,063 '1,048 1,047 1,055 Leather and leather products. . . 356 363 365 363 362 361 364 367 362 '357 345 350 344 Food and kindred products 1,176 1,179 1,171 1,166 1,171 1,173 1,211 1,212 1,213 1,191 1,183 1,175 1,165 Tobacco manufactures 80 79 82 82 79 81 80 81 81 82 80 80 79 Paper and allied products 404 412 420 419 423 424 421 421 422 427 427 429 428 Printing, publishing and allied industries 504 509 510 509 510 510 510 510 515 '513 512 511 512 Chemicals and allied products... 499 501 503 513 511 514 521 524 531 '538 538 544 548 Products of petroleum and coal. 180 189 186 190 190 192 192 193 195 196 195 196 196 Rubber products 206 210 215 217 218 218 220 221 219 219 223 224 222 WITHOUT SEASONAL ADJUSTMENT Manufacturing—Total 12,151 12,802 13,016 13,133 13,044 13,056 13,018 13,186 13,189 '13,108 13,004 13,058 12,895 Durable goods . •. 6,597 6,900 7,013 7,186 7,210 7,254 7,256 7,371 7,428 '7,445 '7,417 7,412 7,246 Primary Metal Industries 1,054 1,086 1,105 1,117 1,126 1,142 1,149 1,153 /, 159 r1,161 '1,161 1,169 1,163 Blast furnaces, steel works and rolling mills 543 550 552 553 554 556 559 559 561 '562 '565 571 Nonferrous smelting and refining, primary 45 46 46 46 45 47 47 47 47 47 46 48 Nonferrous rolling, drawing and alloying 80 83 85 86 86 87 87 87 86 85 81 83 Fabricated Metal Products 773 814 837 850 850 852 847 852 858 r859 850 843 811 Cutlery, hand tools and hardware 129 132 138 141 143 144 144 144 142 140 138 137 Heating apparatus and plumbers' supnlies . . . 120 132 137 137 135 133 130 132 134 133 130 129 Fabricated structural metal products 158 165 166 171 172 173 173 175 176 178 179 177 Machinery except Electrical 1,032 1,060 1,050 1,104 1,133 1,163 1,192 1,215 1,231 '1,239 n. 246 1,256 1,236 Agricultural machinery and tractors 141 140 102 124 125 135 147 150 151 152 152 153 Metal working machinery... 162 171 181 190 197 204 211 218 223 227 229 234 Special-industry machinery ... 124 127 132 136 138 141 144 147 149 150 150 151 Service-industry and household machines 146 145 146 148 151 148 147 149 148 '144 '144 140 Electrical Machinery 620 655 673 710 721 724 711 716 724 r718 '709 705 674 Electrical apparatus (generating etc ) 227 237 237 252 254 257 256 258 262 '266 271 276 Communication equipment. 228 248 255 272 278 278 268 270 273 '262 '249 241 Transportation Equipment 1,070 1,118 1,134 1,157 1,139 1,160 1,175 1,233 /, 253 ' 1,243 n, 231 1,232 1,218 Motor vehicles and equipment 757 781 788 795 760 767 767 791 793 '774 '753 737 Aircraft and parts 188 199 209 225 239 252 264 288 299 '309 317 330 Ship and boat building and repairing 68 79 76 76 76 79 83 95 96 94 95 98 Lumber and Wood Products 750 783 790 785 773 754 739 736 722 r752 '770 778 755 Sawmills and planing mills. . 444 465 468 462 452 440 429 428 426 '443 '452 459 Millwork, plywood, etc 109 114 114 115 114 112 110 107 107 108 '108 108 Furniture and Fixtures 303 319 327 329 327 326 321 324 326 r317 r302 288 282 Household furniture 222 234 240 242 242 238 234 235 236 '227 '212 199 Stone, Clay, and Glass Products.. 440 459 458 471 477 474 473 473 479 483 484 485 475 Glass and glass products. . . 114 122 117 127 129 128 128 128 130 132 131 130 Structural clay products 77 79 80 80 81 79 80 80 80 82 83 85 Instruments and Related Products. 178 187 199 205 209 211 211 215 218 221 222 223 217 Miscellaneous Manufacturing Industries 358 399 418 436 432 424 413 427 429 r422 410 399 379 Ordnance and A ccessories 19 20 22 22 23 24 25 27 29 30 32 34 36 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 July 1951 are preliminary. Back data and data for industries not shown, without seasonal adjustment, may be obtained from the Bureau of Labor Statistics. Seasonally adjusted data beginning January 1939, for groups and the total, may be obtained from the Division of Research and Statistics. 1178 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. In thousands of persons] 1950 1951 Industry group or industry July Aug. Sept. Oct. Nov. Dec, Jan. Feb. Mar. Apr. May June July Nondurable goods 5,554 5,902 6,003 5,947 5,834 5,802 5,762 5,815 5,761 5,663 5,587 5,646 5,649 Textile-mill Products 1,160 1,224 1,255 1,264 1,262 1,258 1,257 1,269 1,223 1,214 1,206 1,199 1.161 Yarn and thread mills 147 154 159 161 161 160 162 164 162 160 160 157 Broad-woven fabric mills 571 595 606 607 606 604 602 604 564 '567 '573 583 Knitting mills 209 227 233 236 234 234 232 236 236 230 222 215 Apparel and Other Finished Textiles 981 1,089 1,099 1,100 1,056 1,064 1,070 1,115 1,106•1,04 r1.001 1,000\ 992 Men's and boys' suits, coats and overcoats 127 138 137 138 137 137 138 141 141 138 135 133 .... Men's and boys' furnishings 232 252 254 254 253 251 251 259 263 261 253 248J. .. . Women's and misses' outerwear 266 307 305 297 275 296 303 317 305 '267 '251 I Leather and Leather Products 351 370 372 367 360 359 364 374 371 r353 331 343 339 Footwear (except rubber) 230 237 237 230 226 229 234 239 237 225 '210 221 Food and Kindred Products 1,231 1,331 1,350 1,260 1,196 1,155 1,120 1,099 1,096'1,085 1,144] 1.218 Meat products 235 236 236 240 244 254 251 238 233 229 229 233] Dairy products 116 114 107 102 100 97 95 95 99 103 109 115 Canning and preserving 223 302 324 226 171 143 132 127 125 128 136 154! Bakery products , 194 192 194 196 193 190 188 188 190 190 189 1921 Beverage industries 164 169 159 149 149 146 147 145 147 143 146 155 Tobacco Manufactures 75 82 89 89 84 80 80 78 76 74 76 74 Paper and Allied Products , 396 410 418 421 427 428 423 423 424 427 '424 427 419 Pulp, paper and paperboard mills 204 207 210 210 211 212 209 209 209 nvi 2U 216 Printing, Publishing and Allied Industries. . . . 499 504 510 514 515 518 510 510 512 r510 511 Newspapers 150 150 151 150 150 152 149 150 150 151 152 153| 507 Commercial printing 164 165 167 170 170 171 170 170 170 168 168 169! Chemicals and Allied Products 479 491 506 523 521 524 526 53, 539 r538 '55/ 528 Industrial inorganic chemicals 51 49 50 56 57 57 57 58 59 59 60 61 i 526 Industrial organic chemicals , 152 155 158 159 160 162 163 163 167 168 170 172 Drugs and medicines , 63 63 65 66 66 67 67 69 69 70 70 71 Products of Petroleum and Coal , 182 193 189 190 191 191 190 191 192 194 194 19~\ 198 Petroleum refining , 139 147 145 147 148 147 147 148 149 150 151 153 Rubber Products , 200 208 215 219 222 222 22, 22, 220 219 215 Tires and inner tubes 88 90 92 92 93 92 91 91 '8' 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 1950 1951 1950 1951 1950 1951 July May June July July May June July July May June July Manufacturing—Total 59.21 64.55 65.32 64.56 40.5 40.7 40.8 40.4 1.462 1.586 1.601 1.598 Durable goods , 63.01 69.39 70.39 68.92 41.1 41.7 41.8 41.0 1.533 1.664 1.684 1.681 Primary metal industries 66.95 '74.93 76.62 75.08 40.7 '41.7 41.8 41.3 1.645 1.797 i. 833 1.818 Fabricated metal product? , 62.55 69.22 69.93 68.64 41.1 41.8 42.0 41.1 1.522 1.656 1.665 1.670 Machinery except electrical 66.35 76.34 76.69 76.21 41.6 43.6 43.5 43.3 1.595 1.751 1.763 1.760 Electrical machinery 59.44 '66.52 67.39 64.60 40.6 41.5 41.6 40.2 1.464 1.603 1.620 1.607 Transportation equipment , 71.71 '74.81 75.25 72.03 41.5 '40.9 40.5 39.0 1.728 1.829 1.858 1.847 Lumber and wood products 56.27 '59.20 61.40 60.81 41.1 '41.2 41.6 41.2 1.369 1.437 1.476 1.476 Furniture and fixtures 52.03 '56.34 56.05 55.50 41.0 '40.5 40.5 39.9 1.269 1.391 1.384 1 .391 Stone, clay, and glass products , 58.57 '64.80 65.09 65.78 40.9 41.7 41.7 41.9 1.432 1.554 1.561 1.570 Instruments and related products , 58.98 '68.41 68.25 67.14 40.9 42.2 42.0 41.6 1.442 '1.621 1.625 1.614 Miscellaneous manufacturing industries 52.47 '57.43 57.77 56.78 40.3 40.7 40.8 40.1 1.302 1.411 1.416 1.416 Ordnance and accessories 64.92 '72.29 71.83 76.03 42.6 42.9 42.5 44.0 1.524 1.685 1.690 1.728 Nondurable goods 54.73 '57.97 58.47 58.78 39.8 39.3 39.4 39.5 1.375 1.475 1 484 1.488 Textile-mill products 47.27 '51.49 51.11 49.69 39.0 38.8 38.6 37.7 1.212 1.327 1.324 1.318 Apparel and other finished products 43.22 '43.65 44.14 45.75 36.2 '35.4 35.4 35.8 L. 194 1.233 1.247 1.278 Leather and leather products 44.73 '45.64 46.81 47.19 38.1 '35.6 36.6 37.1 1.174: 1.282 1 279 1.272 Food and kindred products 56.94 '60.44 61.59 61.90 42.3 41.6 41.9 42.6 .346 1.453 1.470 1.453 Tobacco manufactures 42 12 42.42 44.76 44.47 38.4 36.6 38.0 37.4 L.097 1.159 1.178 1.189 Paper and allied products 61.36 65.90 65.58 65.09 43.3 43.3 43.0 42.6 L .417 1.522 1.525 1.528 Printing, publishing and allied products 72.30 '75.74 76.01 76.16 38.5 38.7 38.8 38.8 1.878 1.957 1.959 1.963 Chemicals and allied products 62.99 '68.14 68.60 69.06 41.2 '41.7 41.6 41.6 L .529 1.634 1.649 1.660 Products of petroleum and coal 76.09 '81.43 81.32 83.84 41.6 40.9 40.7 41.4 1.829 1.991 1.998 2.025 Rubber products 65.59 '68.48 71.66 72.50 41.2 41.3 42.4 42.2 L.592 1.658 1.690 1.718 ' Revised. NOTE.—Data are for production and related workers. Figures for July 1951 are preliminary. Back data are available from the Bureau of Labor Statistics. SEPTEMBER 1951 1179 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. In thousands of persons] Transporta- Federal, Year or month Total M t a u n r u in fa g c- tiing 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 Sta l t o e c , a a l nd utilities government 1943 42,042 17,381 917 1,567 3,619 7,189 1,401 3,919 6,049 1944 41,480 17,111 883 1,094 3,798 7,260 1,374 3,934 6,026 1945 40,069 15,302 826 1,132 3,872 7,522 1,394 4,055 5,967 1946 41,412 14,461 852 1,661 4,023 8,602 1,586 4,621 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 L,716 4,799 5,613 1949 43,006 14,146 932 2,156 3,977 9,438 1,763 4,782 5,811 1950 44,124 14,884 904 2,318 4,010 9,524 1,812 4,761 5,910 SEASONALLY ADJUSTED 1950—July 44,259 14,977 915 2,366 4,021 9,556 1,804 4,76<r 5,851 August 44,914 15,333 942 2,434 4,073 9,651 11,819 4,779 5,883 September 45,196 15,444 942 • 2,454 4,119 9,650 1,836 4,768 5,983 October 45,408 15,606 937 2,506 4,138 9,630 1,839 4,733 6,019 November 45,501 15,635 937 2,521 4,126 9,620 1,838 4,747 6,077 December 45,605 15,692 938 2,452 4,125 9,692 1,846 4,741 6,119 1951—January 45,804 15,852 939 2,507 4,107 9,722 1,840 4,737 6,100 February 46,078 16,009 939 2,503 4,117 9,769 1,848 4,728 6,165 March 46,266 16,058 930 2,556 4,147 9,762 1,854 4,729 6,230 April '46,411 '16,102 '914 '2,574 4,153 '9,773 1,856 r4,745 6,294 May '46,513 '16,101 ••914 2,566 '4,141 '9,814 1,866 '4,764 6,347 June 46,622 16,105 919 2,555 4,132 9,853 1,874 4,786 6,398 July 46,562 16,044 889 2,548 4,124 9,826 1,879 4,780 6,472 UNADJUSTED 1950— July 44,096 14,777 922 2,532 4,062 9,390 1.831 4,841 5,741 August 45,080 15,450 950 2,629 4,120 9,474 1,837 4,827 5,793 September 45,684 15,685 946 2,626 4,139 9,641 1,827 4,816 6,004 October........ 45,898 15,827 939 2,631 4,132 9,752 1,821 4,757 6,039 November 45,873 15,765 938 2,571 4,123 9,896 1,820 4,723 6,037 December 46,595 15,789 937 2,403 4,125 10,443 1,828 4,694 6,376 1951—January 45,246 15,784 932 2,281 4,072 9,592 1,831 4,666 6.088 February 45,390 15,978 930 2,228 4,082 9,554 1,839 4,657 6,122 March 45,850 16,022 924 2,326 4,112 9,713 1,854 4,682 6,217 April '45,998 '15,955 '911 '2,471 4,132 '9,627 1,865 '4,745 6,292 May '46,232 '15,873 '913 2,592 ••4,138 '9,676 1,875 4,788 6,377 June 46,563 15,964 923 2,683 4,161 9,728 1,893 4,834 6,377 July 46,389 15,830 896 2,726 4,166 9,656 1,907 4,852 6,356 ' Revised. 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, unpaid family workers, and members of the armed forces are excluded. July 1951 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 Total civilian non- Employed 2 Not in the Year or month institutional Unem- labor force population * Total ployed In nonagricul- In Total tural industries agriculture 1943 94,640 55,540 54,470 45,390 9,080 1,070 39,100 1944 . . 93,220 54,630 53,960 45,010 8,950 670 38,590 1945 94,090 53,860 52,820 44,240 8,580 1,040 40,230 1946 103,070 57,520 55,250 46,930 8,320 2,270 45,550 1947 106,018 60,168 58,027 49,761 8,266 2,142 45,850 1948 . . 107,175 61,442 59,378 51,405 7,973 2,064 45,733 1949 108,156 62,105 58,710 50,684 8,026 3,395 46,051 1950 109,284 63,099 59,957 52,450 7,507 3,142 46,181 1950—Juiy 109,491 64,427 61,214 52,774 8,440 3,213 45,064 August 109,587 64,867 62,367 54,207 8,160 2,500 44,718 September 109,577 63,567 61,226 53,415 7,811 2,341 46,010 October 109,407 63,704 61,764 53,273 8,491 1,940 45,704 November . . . . 109,293 63,512 61,271 53,721 7,551 2,240 45,782 December 109,193 62,538 60,308 54,075 6,234 2,229 46,657 1951—Tanuary 109,170 61,514 59,010 52,993 6,018 2,503 47,658 February 108,933 61,313 58,905 52,976 5,930 2,407 47,619 108,964 62,325 60,179 53,785 6,393 2,147 46 638 April . . . 108,879 61,789 60,044 53,400 6,645 1,744 47,092 May 108,832 62,803 61,193 53,753 7,440 1,609 46,029 June 108,836 63,783 61,803 53,768 8,035 1,980 45,053 July 108,856 64,382 62,526 54,618 7,908 1,856 44,474 1 The number of persons in the armed forces, previously included in the total noninstitutional population and total labor force items, is no longer available for reasons of security. * 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. 1180 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 Public works Total R b es u i i d ld e i n n t g ial an u d t il p it u ie b s lic Month Factories Commercial Educational Other 1950 1951 1950 1951 1950 1951 1950 1951 1950 1951 1950 1951 1950 1951 January 730.9 ,043.2 343.5 420.9 37.7 128.4 60.6 121.1 63.5 84.6 73.5 126.8 152.1 161.3 February 779.5 ,140.5 361.5 531.1 27.9 116.2 58.3 101.8 58.0 81.0 121.4 132.2 152.5 178.2 March 1,300.2 ,267.5 574.7 574.6 161.5 122.7 88.6 78.8 96.3 128.4 154.3 139.4 224.9 223.6 April ,350.5 1,375.0 674.8 590.8 119.2 174.3 106.8 106.3 97.0 103.5 125.6 133.9 227.0 266.1 May ,347.6 2,573.0 674.6 661.1 83.7 ,274.9 96 60.6 100.2 123.2 128.3 175.3 264.5 278.0 June ,345.5 ,408.9 628.1 545.2 69.3 211.5 97 65.4 128.3 128.1 148.7 148.3 273.4 310.5 July ,420.2 ,379.8 675.1 548.1 79.8 164.1 117.4 75.4 121.2 150.1 168.8 146.9 258.0 295.2 August ,548.9 754.1 128.8 137.9 113.1 161.2 253.8 September ,286.5 549.6 90.8 137.2 119.4 151 238.2 October ,135.8 529.9 93.6 104.5 86.3 142.5 179.1 November ,087.1 496.7 103.9 94.4 109.4 127.2 155.5 December 1,168.4 478.6 146.1 108.9 87.2 148.2 199.5 Year 14,501.1 6,741.0 1,142.3 1,208.5 1,179.8 1,651.0 2,578.4 CONSTRUCTION CONTRACTS AWARDED, BY OWNERSHIP CONSTRUCTION CONTRACTS AWARDED, BY DISTRICTS [Figures for 37 States east of the Rocky Mountains, as reported by the F. W. 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 1949 1950 1951 1949 1950 1951 1949 1950 1951 1951 1950 Federal Reserve district Jan 483 731 1,043 160 201 306 323 530 737 July June July Feb 568 780 1,141 252 285 332 317 495 808 Mar 748 1,300 1,268 282 481 418 466 819 849 Apr 846 1,350 1,375 319 354 456 527 996 919 May 885 1,3482,573 369 389 1,474 517 959 1,099 Boston . . . . . . .. 74,404 110,897 109,039 June.... 950 1,345 1,409 375 428 583 574 917 826 New York 235,241 169,486 242,960 July 948 1,420 410 460 537 960 Philadelphia 106,991 58,967 82,691 A Se u p g t 1,0 9 7 11 2 1 1 , , 5 28 4 7 9 3 2 1 8 6 9 4 3 3 6 8 4 5 7 9 8 5 3 1,1 9 1 22 1 C R l i e c v h e m la o n n d d 1 1 5 4 2 2 , , 5 8 0 2 4 1 1 1 4 3 7 8 , , 7 6 9 7 3 4 1 17 3 2 0 , , 7 6 4 7 0 5 - Oct 1,062 1,136 332 308 730 828 Atlanta 190,972 187,004 138,069 Nov 958 1,087 316 320 642 767 Chicago 202,934 265,263 238,009 Dec 929 1,168 299 381 630 787 St. Louis 74,615 94 084 93 712 Minneapolis 46,246 71,474 49,765 Year.. 10,359 14,501 3,718 4,409 6,641 10,092 Kansas City 53,251 56,902 57,061 Dallas 99,851 108,388 105,460 LOANS INSURED BY FEDERAL HOUSING ADMINISTRATION Total (11 districts) 1,379,830 1,408,932 1,420,181 [In millions of dollars] Title I loans Mortgages Y m e o a n r t o h r Total p m P e r i r m r e o o t n v y p - t e - 1 - s S h c t t m o i r o o u m n a n c - l e - l 1 f h ( a - o T m I u t D i o s t i l l e e y 4 s - h R g ( o T a r e I u o n n i D s t u d t i l a p n e l g W h e ( o V V a T r u a r I e i s n ) t t a i * l - s n e n ' g d V ( h M t T i o a I n i i u I r g t l y I s l i ) e - - s INSURED P O F R H T A FO H L O IO M [ , I E n B m Y M i l O C li L o R n A T s S G o S A f O G do E F ll S a I r N s ( ] S T T IT IT L U E T I I I O ) N HELD IN 1 1 1 1 1 9 9 9 9 9 4 5 4 4 4 6 0 7 8 9 3 3 4 1 , , , , 3 8 3 7 7 4 2 8 3 5 2 1 7 8 5 3 6 5 5 6 1 2 3 9 9 4 1 4 4 4 ( ( 4 4 1 * ) ) 3 7 2 1 , ,8 4 3 8 4 5 6 4 8 4 5 6 7 0 6 "•"Y 21 3 1 1 1 , , , 8 3 0 8 3 3 3 0 8 6 9 1 8 5 12 1 3 2 End of month Total b C m a c o i n e a m r k l - s - b M s i t a n u a n g v u a k s l - - s a a S l s i a o t n s a n i a o g o v d n c s n - i s - p I c a n a o n s n m c u i e e - r s - a c F e g i e r e e a d n s l - 1 - Other2 1950— July... 369 61 183 9 111 5 Aug.. . 414 69 (4) 217 122 6 Sept.. . 373 55 (*) 216 (4) 88 14 1936—Dec 365 228 8 56 41 5 27 Oct.... 379 82 (4) 241 3 43 10 1937—Dec 771 430 27 110 118 32 53 Nov.. . 379 74 (4) 236 2 49 17 1938—Dec 1,199 634 38 149 212 77 90 Dec. .. 349 54 (4) 204 5 63 23 1939—Dec 1,793 902 71 192 342 153 135 1940—Dec 2,409 1,162 130 224 542 201 150 1951—Jan.... 330 63 1 225 (4) 28 13 1941—Dec 3,107 1,465 186 254 789 234 179 Feb.... 261 44 1 176 27 10 1942—Dec 3,620 1,669 236 276 1,032 245 163 Mar... 294 50 2 180 3 32 28 1943—Dec 3,626 1,705 256 292 1,134 79 159 Apr. .. 252 43 2 162 7 20 18 1944—Dec 3,399 1,590 260 269 1,072 68 140 May.. 271 52 2 165 16 36 1945—Dec 3,156 1,506 263 253 1,000 13 122 June.. 255 54 2 146 56 31 16 July... 274 76 2 146 17 19 13 1946—June 3,102 1,488 260 247 974 11 122 Dec 2,946 1,429 252 233 917 9 106 1 Net proceeds to borrowers. 2 Mortgages insured under War Housing Title VI through April 1946; figures thereafter represent 1947—June 2,860 1,386 245 229 889 8 102 mainly mortgages insured under the Veterans' Housing Title VI Dec 2,871 1,379 244 232 899 7 110 (approved May 22, 1946) but include a few refinanced mortgages originally written under the War Housing Title VI. Beginning with 1948—June 2,988 1,402 251 245 973 7 110 December 1947, figures include mortgages insured in connection with Dec 3,237 1,429 265 269 1,113 9 152 sale of Government owned war housing, and beginning with February 1948 include insured loans to finance the manufacture of housing. 1949—June 3,894 1,587 305 323 1,431 21 227 * Mortgages insured on new rental housing at or near military Dec 4,751 1,771 378 416 1,828 52 305 installations under Title VIII, approved Aug. 8, 1949. < Less than $500,000. 1950— Dec 6,695 2,205 693 603 2,712 60 421 « Includes about 3 million dollars of Class 3 loans insured before expiration of this program Feb. 28, 1950, but tabulated after that date and not shown separately. Includes almost one million dollars of 1 The RFC Mortgage Company, the Federal National Mortgage mortgages insured since August under new Sec. 8 small homes program. Association, the Federal Deposit Insurance Corporation, and the and N O do T E n . o — t F ta i k g e u r a es c c r o e u p n re t s o e f n t p r g in ro c s i s p a i l n s r u e r p a a n y c m e e w nt r s i tt o e n n p d r u ev ri i n o g u sl t y h e in p s e u ri r o e d d Un 2 i t I e n d c lu S d ta e t s e s m o H r o tg u a s g in e g co C m o p rp a o n r i a e t s i , o f n i . nance 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 notjiecessarily 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. SEPTEMBER 1951 1181 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MERCHANDISE EXPORTS AND IMPORTS [In millions of dollars] Merchandise exports 1 Merchandise imports 2 Excess of exports Month 1947 1948 1949 1950 1951 1947 1948 1949 1950 1951 1947 1948 1949 1950 1951 January 1,114 1,092 L.105 741 P974 531 547 590 623 P1,024 583 545 515 118 P-50 February 1,146 1,085 1,043 764 Pi,076 437 589 567 600 P909 709 496 477 164 P167 March.. 1,326 1,139 L,189 860 Pi,284 445 675 633 665 Pl.099 882 464 557 195 P185 April 1,294 1,121 1,173 804 P1,372 512 532 535 585 P1,033 782 590 638 219 P339 May 1,414 1,103 1,095 830 Pl.353 474 554 541 659 Pl,018 940 549 554 170 P335 June 1,235 1,014 .108 878 Pi, 294 463 625 526 687 P929 772 389 582 191 P364 July 1,155 1,019 900 3779 PI,186 450 564 457 709 P893 705 456 444 70 P293 August 1,145 992 885 P762 400 606 491 P820 745 386 394 *-59 September.... 1,112 926 910 P911 473 560 530 P862 639 365 380 P49 October 1,235 1,023 856 P906 492 600 557 P923 743 423 299 P-17 November 1,141 823 842 P978 455 554 593 P854 687 269 249 P124 December 1,114 1,318 945 Pl.065 603 720 605 P867 511 598 340 P199 Jan.-July 8,684 7,572 7,614 P5,655 P8,537 3,311 4,084 3,847 P4,528 P6,905 5,373 3,488 3,767 Pl.127 Pl,632 Preliminary. 1 Includes 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. 3 Includes 47.0 million dollars of Mutual Defense Assistance Program shipments which were excluded from the export statistics for April, May, and June. Source.—Department of Commerce. Back figures.—See BULLETIN for February 1951, p. 210; 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 I [Index numbers, 1935-39 average =100] RAILROADS [In millions of dollars] For- Mis- Mer- Year or month Total Coal Coke Grain s L t i o v c e k - p e ro st d- Ore l c a e n l- e- c d h i a se nucts ous l.c.l. Year or month o r p e e T v r e o a n t t a i u n l e g s ex T p o e t n a s l es op in e N c ra o e t m t in e g 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 1939 3,995 3,406 589 93 1942 138 135 181 120 104 155 206 146 69 1940 4,297 3,614 682 189 1943 137 138 186 146 117 141 192 145 63 1941 5,347 4,348 998 500 1944 140 143 185 139 124 143 180 147 67 1942 7,466 5,982 1,485 902 1945 . . . 135 134 172 151 125 129 169 142 69 1943 9,055 7,695 1,360 873 1946 132 130 146 138 129 143 136 139 78 1944 9,437 8,331 1,106 667 1947 143 147 182 150 107 153 181 148 75 1945 8,902 8,047 852 450 1948 138 141 184 136 88 149 184 146 68 1946 7,628 7,009 620 287 1949 116 100 145 142 77 123 151 127 57 1947 8,685 7,904 781 479 1950 128 117 180 135 68 140 172 140 53 1948 9,672 8,670 1,002 699 1949 8,580 7,893 687 438 SEASON\LI Y 1950 P9,473 P8,434 PI,040 J»783 O HAi -n. DOkJ.U/|\ S-TYT 1^,E .L. DI SEASONALLY 1950—July 126 105 -•196 135 61 148 186 140 51 ADJUSTED August 135 126 194 139 60 155 190 147 56 September. . . 134 135 201 128 72 148 198 142 55 1950—July 772 686 86 54 October 136 135 206 159 75 146 184 145 54 August 833 744 88 55 November. . . 136 126 198 166 72 157 184 146 53 September.. 858 749 109 73 December. . . 140 129 194 158 72 162 199 151 52 October 885 776 108 74 November.. 863 760 103 70 1951—January 146 133 199 153 69 170 243 158 52 December. . 941 849 92 60 February.... 129 114 186 134 55 143 241 141 48 March 139 112 202 150 62 147 241 157 53 1951—January... . 863 766 98 66 April 136 112 197 158 68 156 212 151 51 February... 783 742 41 11 May U3 111 210 141 64 154 212 148 48 March 854 783 71 39 Tune 131 120 217 123 r61 152 207 144 47 April 873 800 73 41 July 125 97 215 130 61 143 203 142 45 Mav .. 855 794 62 30 June 871 795 76 P44 UNADJUSTED UNADJUSTED 1950—July 130 105 190 162 48 149 298 141 51 August. . . 140 126 186 150 57 163 285 149 56 1950—July 772 688 84 59 September.. . 145 135 198 143 95 160 298 154 57 August 890 768 122 96 October 147 135 201 159 116 154 262 158 56 September.. 872 749 123 99 November. . . 139 126 198 162 90 154 188 152 54 October.. . . 925 791 135 108 December. . . 130 129 204 148 70 145 62 142 50 November.. 862 752 110 86 December. . 928 815 113 120 1951—January 133 133 209 153 66 153 61 145 50 February.... 119 114 197 131 44 137 60 133 46 1951—January.. . . 849 771 78 55 March 130 112 204 138 49 147 70 149 54 February... 716 697 19 -4 April 133 112 193 139 61 156 193 149 51 March 875 797 78 51 Mav 135 111 208 124 57 160 296 149 48 April 851 781 71 45 Tune 137 120 212 125 49 158 321 148 47 May 889 814 75 49 July 130 97 209 156 50 143 325 143 44 June 856 792 64 P50 r Revised. NOTE.—For description and back data, see BULLETIN for June 1941, pp. P Preliminary. 529-533. Based on daily average loadings. Basic data compiled by Associa- NOTE.—Descriptive material and back figures may be obtion of American Railroads. Total index compiled by combining indexes for tained from the Division of Research and Statistics. Basic classes with weights derived from revenue data of the Interstate Commerce data compiled by the Interstate Commerce Commission. Commission. Annual figures include revisions not available monthly. 1182 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 Reserve district United Year or month States 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 h g i o - Lo S u t i . s 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 286 234 236 271 281 309 374 271 317 275 309 385 332 1950 304 240 244 288 303 325 401 291 331 289 329 417 354 SEASONALLY ADJUSTED 1950—juiy 362 268 274 331 364 *-391 494 330 418 342 414 537 r453 August 335 268 277 319 334 360 415 335 370 321 354 449 374 September 320 255 262 310 333 332 409 305 360 289 345 420 368 October 291 216 238 279 299 312 370 282 305 283 303 375 343 November 290 229 234 273 251 312 391 288 316 291 325 400 345 December 325 249 266 307 328 336 421 318 353 318 354 433 377 1951—Tanuary 362 303 291 342 395 369 450 349 363 325 395 475 421 February 326 251 263 321 333 341 419 322 327 324 346 439 375 March .... .... 291 217 230 283 286 297 413 290 298 249 321 414 336 April 302 233 252 286 323 326 399 282 320 287 314 402 346 May 301 235 243 281 309 331 387 290 330 278 317 405 348 Tune r302 235 267 285 306 331 402 276 313 274 316 409 '347 "July P309 *>245 256 288 309 351 415 286 344 J'276 P312 423 364 UNADJUSTED 1950—July 283 185 192 239 284 r283 386 271 326 276 339 429 '386 August . . 281 198 202 239 290 288 373 278 318 287 326 399 352 September 331 263 267 313 337 356 426 320 363 321 363 454 374 October 308 239 259 299 317 333 388 296 326 319 328 405 345 November 355 287 302 363 313 387 453 357 398 338 376 472 387 December 534 436 450 525 538 584 708 495 540 476 556 711 627 1951—January 277 230 233 253 293 267 342 261 298 248 300 375 333 262 193 218 241 266 266 352 251 275 239 280 351 316 March 284 217 230 286 286 307 422 269 298 236 308 397 318 April 284 221 232 269 297 298 367 276 304 279 302 382 320 May 297 233 238 286 306 325 375 293 323 284 314 393 330 Tune 284 225 254 271 287 305 353 276 282 263 291 352 325 July . P240 P169 179 207 241 254 324 235 269 P223 P256 339 310 STOCKS* 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 . 270 210 223 233 256 301 339 260 296 299 276 362 323 1950 295 231 237 257 288 334 394 276 325 317 300 397 355 SEASONALLY ADJUSTED 1950—Tulv 269 198 '219 241 252 »"327 360 252 283 286 271 374 322 August .... . ... 284 213 226 259 265 334 405 267 295 302 286 406 334 September 309 227 243 275 296 345 438 288 325 323 306 431 389 October 329 249 258 283 313 363 456 313 365 353 330 456 403 November . 332 262 266 282 350 357 448 309 374 345 335 446 395 December 329 264 263 286 351 349 461 297 381 335 330 430 389 1951—January 338 274 273 297 357 351 472 320 337 343 351 437 399 February 349 280 281 305 369 384 458 320 412 350 343 443 414 M^arcli 368 305 299 320 396 r404 462 331 425 363 365 465 445 April 377 303 297 331 395 407 483 343 437 r382 380 486 465 Mav 365 290 290 318 380 398 480 339 403 378 372 486 438 Tune. 353 276 290 314 361 414 453 326 389 368 361 473 405 July ?353 262 294 309 349 407 451 340 357 ^354 P357 483 418 UNADJUSTED 1950—July 258 192 '195 217 251 '305 339 232 295 292 266 351 332 August 285 223 226 254 280 337 401 259 322 299 281 402 333 September 322 245 256 286 324 362 451 297 361 328 312 444 389 October 362 281 291 326 355 403 497 341 409 371 353 479 430 November 371 298 306 324 377 397 501 352 400 375 369 495 438 December 295 238 239 252 294 316 401 279 320 310 294 395 354 1951—Tanuary 303 243 240 258 313 322 424 288 290 316 319 406 363 February 334 264 273 299 343 374 463 311 371 336 336 434 389 March 373 296 306 336 392 416 485 344 413 378 373 493 436 April 386 297 306 345 401 425 507 353 437 r387 392 510 474 May 370 287 294 325 383 405 476 342 403 379 379 486 454 T u ne 341 265 274 295 355 373 435 313 389 355 361 445 408 Tulv P338 254 262 278 348 380 424 313 372 P362 P350 454 430 P Preliminary. r 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. 1183 SEPTEMBER 1951 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DEPARTMENT STORE STATISTICS—Continued SALES AND STOCKS BY MAJOR DEPARTMENTS Percentage change Ratio of Index numbers from a year ago stocks to without seasonal adjustment (value) sales i 1941 average monthly sales = 100 8 Num- Stocks Department b st e o r re o s f Sale p s e r d io u d ring ( m en o d nt o h f ) June Sal p e e s r d i u o r d ing Sto o c f k m s o a n t t h end reporting June Six June 1951 1950 1951 1950 1951 months 1951 1951 1950 1951 June May June June May June GRAND TOTAL—entire store 3. 353 +2 +8 +31 3.5 2.8 MAIN STORE—total 353 +2 +9 +32 3.8 3.0 200 208 195 765 831 579 Piece goods and household textiles 314 +3 +14 +40 5.0 3.7 174 185 169 868 903 619 Pie W S c i e l o k o g s l , o e o v n d e s y lv a e rd ts , g a o n o d d s synthetics 2 1 1 9 9 7 1 2 3 + + + 1 3 1 2 + + 2 2 + + + 3 1 1 5 0 6 2 4 0 4. . . 3 4 3 1 3 4 6 . . . 1 8 9 1 1 5 7 2 7 1 3 2 1 5 0 6 9 7 0 1 1 5 2 6 1 0 9 , 5 7 1 4 3 6 6 9 5 9 8 5 9 0 9 2 2 7 4 6 8 3 8 4 5 8 2 Ho C D L u i o o s n e t m e t h o n e o n s s l t d a i y c n a t s d e r — x d t t o m i g l w e o u s o e s l d l s i s ns, sheetings , , 3 2 2 1 5 0 7 8 1 5 4 5 + + 4 -1 - 4 5 3 + + + - 2 1 5 5 3 3 + + + + 3 6 5 1 7 7 5 6 2 5 5 5 . . . . 3 2 5 4 3 4 3 2 . . . . 1 3 6 2 2 1 1 1 8 7 6 9 2 6 8 0 3 2 1 1 3 0 5 7 2 0 9 7 2 1 1 1 8 6 8 6 4 3 0 9 9 9 9 7 3 8 1 1 3 3 2 5 1, 9 0 9 8 3 0 5 6 0 9 1 7 6 6 6 5 2 6 0 9 1 3 4 0 Blankets, comforters, and spreads 239 +5 +37 +73 5.2 3.2 174 171 166 905 948 529 + 17 Small wares 342 +7 +6 +18 3.9 3.5 180 176 168 701 750 596 Laces, trimmings, embroideries, and ribbons. 205 +4 + 7 +10 3.2 3.0 232 262 223 744 806 674 Notions 238 +3 +5 + 16 3.0 2.7 273 291 265 832 889 717 Toilet articles, drug sundries , 328 +9 +9 +17 3.6 3.4 158 151 146 573 599 490 Silverware and jewelry 310 +4 +5 +24 4.7 4.0 199 191 191 945 1,020 759 Silverware and clocks 4 215 0 +10 +43 6.3 4.4 Costume jewelry4 , 274 +4 -1 +6 2.9 2.8 Fine jewelry and watches4 76 + 12 +12 +17 6.6 6.3 Art needlework , 234 +7 + 1 +26 6.8 5.8 115 117 108 790 831 625 Books and stationery , 271 +10 +2 + 10 3.8 3.7 159 152 145 599 653 542 Books and magazines 130 +13 +2 +5 3.3 3.6 137 129 121 451 477 439 Stationery 240 +8 +2 + 12 3.9 3.8 161 149 149 632 674 562 Women's and misses' apparel and accessories 350 +2 +7 +21 2.7 2.3 188 215 183 510 571 422 Women's and misses' ready-to-wear accessories. 350 +3 +7 +23 3.3 2.8 186 209 181 622 684 506 Neckwear and scarfs 307 + 14 +9 +24 2.4 2.2 211 265 186 499 586 400 Handkerchiefs 280 -2 +19 4.7 3.9 107 120 108 501 549 420 Millinery 162 -3 -1 +4 1.1 1.0 111 148 115 126 158 119 Women's and children's gloves , 322 +4 +4 + 19 5.7 5.0 98 138 94 559 590 469 Corsets and brassieres , 338 + 1 +10 +22 2.9 2.4 286 281 282 844 897 688 Women's and children's hosiery , 342 +2 +8 +34 2.4 1.9 139 161 136 343 384 255 Underwear, slips, and negligees , 342 + 1 +8 +22 3.1 2.6 211 237 209 654 722 538 Knit underwear , 249 +1 + 13 +31 3.4 2.6 256 282 253 866 939 661 Silk and muslin underwear, and slips 282 2 +4 + 18 3.2 2.7 197 227 201 634 712 531 Negligees, robes, and lounging apparel 254 + 11 + 11 + 11 2.3 2.3 181 227 162 412 503 373 Infants' wear 323 +6 +6 +25 3.7 3.2 218 231 205 811 867 645 Handbags and small leather goods , 332 +3 +3 +16 2.4 2.1 175 203 171 419 487 360 Women's and children's shoes , 242 +2 +8 +22 4.7 4.0 215 240 210 1,021 1,136 835 Children's shoes 4 212 +6 +5 + 16 4.8 4.4 Women's shoes 4 , 223 + 1 +9 +22 4.7 3.9 Women's and misses' ready-to-wear apparel..., 350 +2 +7 +18 2 1 1.8 189 222 186 394 448 335 Women's and misses' coats and suits 338 + 16 +9 +37 3.2 2.7 89 146 77 283 304 206 Coats 4 211 +16 + 11 +43 3.4 2.7 Suits * , 205 + 10 +5 +34 2.6 Juniors' and girls' wear , 313 +4 +6 +19 1.: 218 250 210 444 515 373 Juniors' coats, suits, and dresses 274 +4 +6 + 17 1.4 1.3 236 247 227 335 365 284 Girls' wear 313 +6 +7 +20 2.8 2.5 211 233 199 600 663 497 Women's and misses' dresses 341 +5 +3 1.2 1.2 237 280 238 293 366 286 Inexpensive dresses 4 257 j +5 0 0.9 0.9 Better dresses4 270 + 1 +6 +5 1.7 1.6 Blouses, skirts, and sportswear 340 +3 +6 +21 2.1 1.8 292 288 283 605 731 503 Aprons, housedresses, and uniforms 290 -9 +2 +10 1 .7 1.4 249 287 275 429 491 387 Furs 264 +19 +37 +23 28.2 27.2 16 27 13 440 383 331 Men's and boys' wear 331 +2 +7 +31 3.7 2.9 234 184 229 867 973 663 Men's clothing 253 +5 +10 +40 4.3 3.2 228 203 218 974 1,089 695 Men's furnishings and hats 316 0 +5 +29 3.1 2.4 256 169 255 784 893 605 Boys' wear 300 +3 +3 + 17 4.6 4.0 169 179 164 769 866 656 Men's and boys' shoes and slippers 193 +6 +13 +26 4.5 3.8 234 185 221 1,054 1,141 838 Homef urnishings 319 0 +11 +42 5.3 3.7 223 232 223 1,189 1,241 831 Furniture and bedding 247 +2 + 14 +34 4.9 3.8 213 221 208 1,053 1,066 779 M Up a h tt o r l e s s t s e e re s, d s a p n ri d n g o s t , h a er n d f u s r t n u i d tu io re b 4 eds4 1 1 6 7 9 9 + + 5 2 + +1 1 2 6 + +2 7 7 8 3 5 . . 0 6 4 1 . . 5 8 Domestic floor coverings 275 -5 +23 +47 7.1 4.6 173 208 181 1,225 1,270 825 Rugs and carpets4 159 ^ +26 +51 7.4 4.8 Linoleum 4 106 -10 +3 +8 4.3 3.5 D La ra m p p e s r i a e n s, d c s u h r a ta d i e n s s, and upholstery 2 2 9 4 6 8 + 1 +10 0 + +2 2 3 3 4 4. . 8 4 3 3 . . 6 8 2 1 1 7 3 0 2 1 5 9 4 0 2 1 1 7 1 4 9 8 3 1 3 5 9 8 8 9 6 0 6 75 5 1 8 C M h a i j n o a r a h n o d u s g e l h a o s l s d w a a r p e pliances 2 2 5 3 3 9 + -2 6 + + 1 5 0 + + 1 9 6 3 6 7 . . 0 3 6 2 . . 7 3 2 1 1 7 7 6 2 1 1 6 9 1 2 1 9 6 6 5 1 1 , , 2 2 8 9 0 8 1 1 , , 2 4 1 7 1 9 1,0 6 9 6 7 4 Housewares (including small appliances) 258 -27 + 15 +47 4.1 3.1 333 321 296 1,375 1,460 927 G Ra if d t io s s h , o p p h 4 onographs, television, records, etc.4. 2 1 2 7 9 0 + + 1 6 2 +8 0 + + 9 2 3 1 5 7 . . 1 8 4 4. . 1 4 Radios, phonographs, television4 174 0 -2 +107 8.8 3.8 Records, sheet music, and instruments4. . . . 124 + -1 2 1 5 + 12 + 19 6.1 6.4 Miscellaneous merchandise departments. . . 318 +7 +8 +48 3.5 2.6 199 202 185 699 826 473 Toys, games, sporting goods, cameras 296 +8 +8 +65 5.7 3.8 196 152 182 1,123 1,125 683 Toys and games 242 + 10 +7 +92 7.6 4.3 144 125 131 1,092 M01 564 Sporting goods and cameras 144 +6 +9 +36 4.2 3.3 212 152 200 898 948 663 Luggage 263 +10 +8 +23 2.8 2.5 322 242 293 907 1,021 727 Candy 4 192 +8 +3 + 10 1.3 1.3 For footnotes see following page. 1184 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 Percentage Ratio of • Index numbers change from a stocks to without seasonal adjustment year ago (value) sales * 1941 average monthly sales = 100 * Num- Department r b s e e t p o r o r o e r s t f - d p S u e a r r l i i e o n s d g m ( S e t o n o d n c t k h o s ) f June Sale p s e r d io u d ring Sto of c k m s o a n t e th nd ing J 1 u 9 n 5 e 1 mo 1 S 9 n i 5 x t 1 hs J 1 u 95 n 1 e 1951 1950 1951 1950 1951 1950 June May June June May June BASEMENT STORE—total . 197 +1 +7 +26 2.3 1.9 212 216 210 494 547 389 Domestics and blankets4 135 +2 +19 +59 3.8 2.4 Women's and misses' ready-to-wear 190 0 +5 +17 1.8 1.5 204 224 204 359 397 304 Intimate apparel4 165 +2 + 10 +24 2.3 1.9 Coats and suits 4 174 +7 +2 + 16 2.4 2.2 Dresses 4 174 -5 +4 +2 0.9 0.9 Blouses, skirts, and sportswear 4 157 + 1 +4 +17 1.6 1.4 Girls' wear4 121 +4 +6 +15 2.0 1.8 Infants' wear 4 120 +8 +9 +30 2.8 2.3 Men's and boys' wear ... 157 +4 +8 +29 2.3 1.8 287 228 277 654 758 501 Men's wear4 135 +3 +8 +29 2.1 1.7 Men's clothing 4 94 + 11 + 10 +31 2.3 2.0 Men's furnishings4 116 -1 +7 +29 1.9 1.4 Boys' wear 4 117 +6 +5 + 18 3.1 2.8 Homef urnishings 103 -4 +6 +40 3.6 2.4 179 207 186 646 674 464 Shoes 119 +2 +11 +20 3.2 2.7 182 180 178 581 642 484 NONMERCHANDISE—total4 168 +2 +7 Barber and beauty shop 4 72 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. * 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. * For movements of total department store sales and stocks see the indexes for the United States on p. 1183. 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. 6 Data not available. NOTE.—Based on reports from a group of large department stores located in various cities throughout the country. In 1950, 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, ORDERS, AND RECEIPTS WEEKLY INDEX OF SALES AT 296 DEPARTMENT STORES * [Weeks ending on dates shown. 1935-39 average = 100] [In millions of dollars] Reported data Derived data 1 Without seasonal adjustment Out- New Year or month m ( S t o f a o o n l t r e t a h s l ) m ( S e t o n o d n c t k h o s ) f s m ( t o e a r n o n d d n d e t i r h o n s ) f g R m ( e o t c f o o n e t r i t a p h l t ) s m o ( r o t f o d o n r e t t a r h l s ) Oct. 1 8 1 9 . 4 . 9 .. . . 2 3 9 0 7 2 O Se ct p . t. 1 3 7 9 0 5 . 0 ... . . 3 3 2 2 5 0 Apr. 1 8 1 9 . 5 . 0 .. . . 3 3 0 2 1 0 A M p a r r . . 1 3 9 7 1 5 . . . 1 . . . . . . . 2 2 5 9 8 2 15.... .29C 14 .322 15.... .254 14... ..288 1942 average... 179 599 263 182 192 22.... .296 21 .304 22 .279 21... ..281 1943 average... 204 509 530 203 223 29 .298 28 .313 29 .285 28... ..293 1944 average... 227 535 560 226 236 Nov. 5.... .315 Nov. 4 .315 May 6 .301 May 5... ..326 1945 average... 255 563 729 256 269 12 .318 11 .342 13 .308 12... ..318 1946 average... 318 715 909 344 327 19 .342 18 .368 20 .275 19... ..285 1947 average... 337 826 552 338 336 26.... .330 25 .319 27 .282 26... ..290 1948 average... 352 912 465 366 345 Dec. 3.... .449 Dec. 2.... .444 June 3 .261 June 2... ..273 1949 average... 333 862 350 331 331 10.... .542 9.... .554 10 .302 9... ..311 1950 average... 347 '942 466 361 370 17.... .584 16.... .638 17 .302 16... ..305 24.... .541 23.... .640 24 .250 23... ..265 1950—July. . . . 292 '791 693 '246 '569 31 .197 30.... .237 July 1.... .263 30. . ..258 A Se ug pt r3 3 6 31 9 1,0 9 2 1 5 8 '7 7 0 5 0 5 ' ' 4 4 5 7 8 6 ' ' 5 4 2 2 0 1 1950 1951 1 8 5 . . . . .. .. . . 2 2 6 1 5 8 July 14 7 . .. .. . . . 2 2 3 1 8 8 Oct ••360 1,168 593 '503 '396 22.... .303 21. ...234 Nov ••406 1,209 '444 '447 '298 Jan. 7.... .205 Jan. 6.... .285 29.... .295 28.. . 232 Dec '615 '956 412 '362 '330 14.... .233 13.... .305 Aug. 5.... .296 Aug. 4... .'254 1951—Jan 337 '992 '657 '373 '618 21.... .230 20.... .301 12.... .273 11... . .252 Feb '284 1,089 '652 '381 '376 28.... .222 27.... .278 19 .281 18... . .268 Mar 347 1,217 467 '475 '290 Feb. 4 .226 Feb. 3.... .234 26.... .288 25... ..279 Apr '312 1,240 '338 '335 '206 11 .238 10.... .273 Sept. 2 .310 Sept. 1... ..300 May.. . . '339 1,193 '295 '292 '249 18. .231 17. .272 9 .295 8. June.. . . 326 1,112 386 245 336 25''I' 221 24 '... 274 16.... .368 15 July.... P257 Pi,065 P433 P210 P257 Mar. 4:.. ..[244 Mar. 3.'.'.'.'.*2 88 23.... .322 22... 11.... .253 10.... .303 9 Preliminary. r Revised. 18.... .264 17.... .292 i These figures are not estimates for all department stores in the 25 .279 24.... .304 United States. Figures for sales, stocks, and outstanding orders are based on actual reports from the 296 stores. Receipts of goods are derived from the reported figures on sales and stocks. New orders ' Revised. are derived from estimates of receipts and reported figures on out- NOTE.—For description of series and for back figures, see BULLETIN standing orders. for September 1944 ,pp. 874-875. Back figures.—Division of Research and Statistics. SEPTEMBER 1951 1185 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] 1 J 9 u 5 ly 1 1 T 9 u 5 n 1 e m 19 o 7 5 s 1 . 1 Ju 95 ly 1 J 1 u 9 n 5 e 1 m 19 o 7 5 s 1 . 1 Ju 95 ly 1 1 T 9 u 5 n 1 e m 19 o 7 5 s 1 . J 1 u 9 l 5 y 1 J 1 u 9 n 5 e 1 m 19 o 5 s 1 . United States.. -16 +2 +6 Cleveland-cont. Chicago -14 -1 +7 Dallas -20 +2! +4 N B N A N N S W P D L P E N N B B B B o e B p o r o l L u e o e r l o e e i i w s o o m b r n i a w r w w f w o s w t w a d i v r f t o a g g t n s i w a l c e g o a i n n n r a Y h t a g Y l d e l a e n o H r o B y r t r l n a f o s k e o - p a e n o i d m t e r e n a n w A o i e r 1 k l d F c k v c r r t d n r o e t f e a e e C o n l * n a l r i s . d . t . . . y . . . . . . . . . . . . . * - - - — - - 1 1 1 1 - - 1 - - - — - — - - - 7 5 0 6 9 7 6 5 6 9 6 6 6 1 1 Q 6 9 7 + + + + + + + + + + - - - 1 U 4 1 1 4 4 5 4 6 9 1 1 4 0 9 1 + + + + + + + + + + + + + + + + + + 1 1 1 1 1 1 5 9 7 3 6 9 4 6 6 3 4 4 0 0 1 1 3 1 0 A R L A A G N C W W H W C C R H R R E P B t i y i l c o i a h h r o s r o n a a u a t h a i c e i h h n l l l r a g ' t d a n n n s e e e h l u t e f s e m c r e n s i e s h t 1 i o e t n b m m l v m h i g a t ' r r o l i e l o t v n u o i s s i n k h b o o b s l k o n n i t g n o r l g u t l n n i o e r e g g d o t l - n a t e r d w , e . o h S . o n g , W 1 . , n . n a . N S n . * S l . . . . e 1 . . V C . . . . m . . C . . C . a . . . . . . . . . + - - - - - - - - - - - - - 1 1 + 3 2 1 2 1 1 1 2 1 1 1 - - - 6 1 2 8 9 8 4 7 1 1 4 2 9 3 2 6 0 8 7 3 7 + + + + + - + + + + + + + + + + + 1 + - 4 2 1 1 1 2 0 2 4 3 8 4 1 6 3 8 4 5 1 7 1 3 2 0 1 1 + + - + + + + + + + + + + 1 + + + + + + - 1 1 5 2 8 3 7 4 3 4 8 3 3 8 7 5 6 3 4 0 2 6 1 S Q L F L L S F G S F T D G M E C D M P I t n . t t o l o o a e i v e u h r e r e . . i a d i t n o e u r r a r a s n i i l t t L d L t i t r L n c w e r l r s n i n t a e e s i o i o a n M i c o d o s s a n W a v n S i g u y i v u u o H u R t a g i o o m B i * i i l R n i p k a s 1 s l l o s i a x e a l o e n y i a c u e i A y t e l e p x k n t h i s e s i * r e . . d * e 1 l . . 2 . . . s . . . a . . \ . . . . . . . . . . . . . > ' ' - - - - - - - - - - - - - - - - - - - - 1 - 2 1 2 2 1 2 1 1 1 2 1 1 3 1 2 1 1 1 9 9 6 1 7 3 0 3 3 2 5 0 0 0 9 0 1 0 7 7 8 - + + + + + + + + - - - - - - - - - - 1 7 3 3 3 3 7 2 3 6 1 5 2 3 6 3 7 0 2 0 1 1 + + + + + + + + + + + + + + + + + + + + 2 1 1 2 2 5 7 2 6 2 7 6 7 2 9 2 2 4 8 6 0 2 0 0 S E S T L O S S F F L S R P S H B C D a S l B a a r a a o o h u o h i a n o a o a e n a v n n c s o n r c r k e k r u l P s n t e e r s p g e r l l e n A A s a F D a r v a k a o n u W t r o s B m s F n r e n s e B n o n i s i s i o a x 1 e l d p e d x g n r t f e o e e n g o a r o C e i e n a y i r c n a e l o n n l r t c t h a i e l a t n h o l i c s h 1 d r s o n r d . i c i d 1 1 s d s * i o . . . c i . . t n . o . . . i ! . . . . o . . . . . P - - - - - - - - - - - - - - - - - - 2 2 1 1 1 2 2 2 3 2 2 1 1 2 2 1 2 1 - 1 3 1 7 2 2 6 4 9 5 2 6 8 9 1 2 3 8 6 + r + + - + + + + + + + + - - \ 1 1 3 1 3 3 4 3 6 3 3 5 0 8 1 1 + + + + + + + + + + + + + + + - + 1 1 1 8 5 7 3 2 3 3 6 3 4 5 3 1 7 3 5 0 0 P S R c o o h u c e h g n e h e s k t c e e t e r a p d i s y i . e . . . . . -1 - - 3 1 6 + - -1 3 3 + + + 2 9 8 M M Bi o o rm b n i t i l g n e o g m ha e m ry * J. . . . - - - 1 1 1 7 7 5 + -1 9 0 + + -1 4 3 S M p e ri m ng p f h ie is l d 1 - -1 2 5 2 + -4 4 +2 0 S S S a t a o n n c t k a Jo to R se n o » sa x. . . - — - 2 2 2 5 2 2 + + + 1 3 4 6 + 4 + - 4 S 1 P T L U W Y S P R h y h a r e o t i i e i n r l i a r l c a l a n k k c d a a d c t e a i d o u e i n s s e l n s - g t p l e e B p h l r * x a h ia r i i r a . e . . * K . . . - - - - - 1 1 2 1 1 - - 3 9 9 0 3 5 3 + + + + - - 2 1 2 6 9 0 1 + + + + + + + + 9 6 6 5 9 6 5 6 0 J O T A A M S R C M a t a o r o u t c . a i l l m m l g a k a a c u P u m n s o n e m p e o s d n t i a a t t n o b x a e 1 x v u * r i s s l b le u r 1 g .. . . . - - - - - - - 1 2 1 2 1 1 1 - — - 8 4 1 1 8 6 3 1 9 5 + + + + + + + + + 2 1 4 9 3 4 4 4 6 1 0 2 + + + + + + + + + - 1 1 1 1 1 3 5 8 9 0 7 1 0 3 0 M K S M D D P a S t i u e u . n n i u e n n l n s P p b u n v a e e l t a e e s o a h r r a u i p - o p P o C r o l i i l 1 s t i y s .. . . . K . . . - - - - - - - 1 2 1 2 1 2 2 9 5 5 6 8 2 0 + - - — - 3 1 2 7 4 0 + + + + + + -3 3 1 3 4 4 4 S S P S V B E B N N a e p o o v e a l a r o i l l a a e t s l l t t k e p m i r e l t L n l a j e a a e o a g a p n t n k n h a t i d i a e 1 e a d 1 n m d C i 1 t . y . * . . - - - - - - 2 2 2 2 1 6 1 0 6 3 5 4 6 ; | + + + + + - - + 2 6 2 6 2 1 4 5 0 ! J + + + + + - + 1 1 1 1 4 5 0 7 0 7 C A le k v r e o l n a n x d - - 1 1 3 5 + + 2 4 + + 1 8 0 S B a a v to a n n n R ah ouge 1.. - - 1 2 1 6 ±1 - + 10 9 T H o u p t e c k h a inson.... - - 2 3 7 4 + — 1 1 + + 1 8 T Y a a c k o i m m a a 1 1 3 1 1 7 i + + 2 4 ! i + + 6 3 Canton 1 -15 +8 +8 New Orleans1.. -17 -2 Wichita -13 +11 +17 Cincinnati1. .. . -16 +3 Jackson 1 -22 -1 -3 Kansas City.... -32 0 +3 Cleveland * -14 +5 + 10 Meridian -9 -3 0 Joplin -25 + 1 +7 Columbus 1 -13 0 +6 Bristol -18 -1 -2 St. Joseph -22 +6 +4 Springfield * +3 +5 Chattanooga *.. -20 _2 +5 Omaha -12 +6 +8 Toledo i +4 +10 Knoxville 1 —9 +3 +5 Oklahoma City. -28 -2 Youngstown 2. . -10 + 13 + 16 Nashville1 -10 +7 0 Tulsa -32 -7 + 1 -2 I v 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. CONSUMERS' PRICES1 [Bureau of Labor Statistics index for moderate income families in large cities, 1935-39 average =100] Year or month All items Food Apparel Rent a F n u d e l, r e e f l r e i c g t e r r i a c t i i t o y 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 105.2 105.5 106.3 106.4 102.2 107.3 104 0 1942 116 6 123.9 124.2 108.8 105.4 122 2 110 9 1943 123.7 138.0 129.7 108.7 107.7 125.6 115.8 1944 . 125 7 136.1 138.8 109.1 109.8 136 4 121 3 1945 128 6 139.1 145.9 109.5 110.3 145.8 124.1 1946 139.5 159.6 160.2 110.1 112.4 159.2 128.8 1947 159 6 193.8 185.8 113 6 121.2 184.4 139 9 1948 171 9 210.2 198.0 121.2 133.9 195.8 149.9 1949 170.2 201.9 190.1 126.4 137.5 189.0 154.7 1950 171.9 204.5 187.7 131.0 140.6 190.2 156.5 1950—July 172 0 208.2 184.5 131.3 139.4 186.1 155 2 August 173.4 209.9 185.7 131.6 140.2 189.1 156.8 September 174.6 210.0 189.8 131.8 141.2 194.2 157.8 October 175 6 210.6 193.0 132.0 142 0 198 7 158 3 November 176 4 210.8 194.3 132.5 142.5 201.1 159.2 December 178.8 216.3 195.5 132.9 142.8 203.2 160.6 1951—January 181.5 221.9 198.5 133.2 143.3 207.4 162.1 February 183 8 226.0 202.0 134.0 143 9 209 7 163.2 March 184.5 226.2 203.1 134.7 144.2 210.7 164.3 April 184.6 225.7 203.6 135.1 144.0 211.8 164.6 May 185.4 227.4 204.0 135.4 143.6 212.6 165.0 Tune 185 2 226.9 204.0 135.7 143 6 212 5 164 8 Tuly 185.5 227.7 203.3 136.2 144.0 212.4 165.0 T Revised. 1 Adjusted series reflecting: (1) beginning 1940, allowances for rents of new housing units and (2) beginning January 1950, interim revision of series and weights. Back figures.—Bureau of Labor Statistics, Department of Labor. 1186 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 Manu- '"vi, or week m c t o A o i d l m e l s - i- F p u r a c o r t m s d- Foods Total l H p e u a r a i c n o d t d ts h d e - s er T p e u r x c o t ts d i - le l m i F r g a a i u h n a t d e t l l s e- ing M m p u e a r e c t n o t d t a s d a - l ls B m r u i a i i n a t g l ls e- d- c C a a p h u l l s r e c l o m i ts d e a - d i- nd H g n o f o i i u u n o s g r- s h d - s e- n c M e e i l o l s- u a s - m R r a i a a t w ls e- t p u f u r a c o r c t - s e d d - 1929 95.3 104.9 99.9 91.6 109.1 90.4 83.0 100.5 95.4 94.0 94.3 82.6 M7.5 94.5 1930 86.4 88 3 90.5 85.2 100 0 80.3 78.5 92.1 89.9 88 7 92.7 77.7 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 72 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 80 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 92.8 66.7 76.5 95.7 90.3 77.0 86.8 73.3 72.0 82.2 1 9 39 . . .. 77 1 65 3 70 4 81 3 95 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 83.0 100.8 73.8 71.7 95.8 94.8 77 0 88.5 77.3 71.9 81.6 1941 87.3 82.4 82.7 89.0 108.3 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 2 116 3 90 1 115.5 132 6 101 4 111 6 100 3 134.7 116.1 1947 152.1 181.2 168.7 135.2 182.4 141.7 108.7 145.0 179 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 1950 161.5 170.4 166.2 153.2 191.9 148.0 133.2 173.6 206 0 122.7 153.2 120.9 172.4 156.8 1950—ju]y 162.9 176 0 171.4 151 6 187 2 142 6 133.5 172.4 207 2 118 1 148 7 119 0 175.8 158.0 August 166.4 177.6 174.6 155.5 195.6 149.5 134.2 174.4 213 9 122 5 153.9 124.3 179.1 161.2 September . 169.5 180.4 177.2 159.2 203.0 158.3 134.9 176.7 219.7 128.7 159.2 127.4 181.8 164.0 October. . . . 169 1 177 8 172.5 161.5 208 6 163 1 135 3 178.6 218 9 132 2 163 8 131.3 180.2 163.5 November 171.7 183.7 175.2 163.7 211.5 166.8 135.7 180.4 217 8 135 7 166.9 137.6 184.5 165.1 December 175.3 187.4 179.0 166.7 218.7 171.4 135.7 184.9 221.4 139.6 170.2 140.5 187.1 169.0 1951—January . . 180.1 194.2 182.2 170.3 234.8 178.2 136.4 187.5 226.1 144.5 174.7 142.4 192.6 173.1 February... . 183 6 202 6 187 6 171 8 238.2 181 1 138 1 188.1 228 1 147 3 175 4 142 7 199 1 175.5 March 184 0 203.8 186.6 172.4 236.2 183.2 138.6 188.8 228.5 146 4 178 8 142.5 199.4 175.8 April 183.6 202.5 185.8 172.3 233.3 182.8 138.1 189.0 228.5 147.9 180.1 142.7 197.7 176.1 May 182 9 199 6 187 3 171 6 232 6 182 1 137 5 188.8 227 8 14S 7 180 0 141 7 195.5 176.2 Tune r181 8 198 6 186.3 170 6 230 6 178 2 137 8 188.2 225 6 142 3 179 4 141 7 194.7 175.6 July 179.5 194.0 186.0 168.7 221.9 173.5 137.8 188.0 223.8 139.4 178.9 138.8 189.8 175.1 Week ending:1 1951—juiy jo 179.7 196.3 186.2 168.2 177.1 137.7 188.2 224.2 140 5 Tuly 17. . 178 7 191 5 186 4 168 0 176 5 137 7 188 2 224 2 139 1 July 24 178.0 189.0 185.0 167.7 175.5 137.7 188.2 224.2 138.2 Tuly 31 177.6 189.9 185.9 166.9 172.6 137.7 188.2 224.2 139.8 Aug 7 177.8 192.0 188.7 166.3 169.6 137.7 188.1 223.6 140.0 Aug 14 177.2 190.9 187.4 166.1 168.5 137.8 188.1 222.3 139.9 Aug. 21 176 7 188 6 186 0 165 9 168.1 137 8 188 1 221 7 140 0 Aug. 28 176.8 188.7 187.4 165.9 168.1 137.8 188.2 221.7 140.0 1950 1951 1950 1951 Subgroups Subgroups July Apr. May June July July Apr. May June July Farm Products: Metals and Metal Products: Grains 173.5 189.1 185.6 178.6 178.0 Agricultural mach. & equip.. . 144.0 159.1 159.1 159.1 158.9 Livestock and poultry.. 215 8 240 9 234 8 235 8 233 9 Farm machinery. 146 2 161 1 161 1 161.1 160.9 Other farm products 151.8 181.7 181.0 180 4 173.1 Iron and steel 169 8 185.9 185.9 185.9 185.9 Motor vehicles 175 1 184 1 184 1 184.3 184.6 Dairv products 141 8 166 6 164 9 163 4 167 5 Nonferrous metals 150 6 184 1 182 8 178 2 175 6 Cereal products 151.2 164.5 163.6 162.3 162.3 Plumbing and heating 156.5 183.7 183.7 183.6 183.6 Fruits and vegetables 137.0 140.0 146.5 146.3 144.3 Building Materials: Meats, poultry and fish.... 240.7 255.1 257.2 255 2 254.6 Brick and tile 165 4 180.8 180.8 180.8 180.8 Other foods 145 1 158 8 160 7 160 8 158 5 Cement . . 135 3 147 2 147 2 147 2 147.2 Hides and Leather Products' Lumber 338 0 361 0 r3^8 8 352 3 347 2 Shoes 185 8 223.5 223.8 223 3 222 4 Paint and paint materials 138 6 164 7 163 7 161 6 159.1 Hides and skins 219.8 297.8 293.8 284.3 250.7 Plumbing and heating 156.5 183.7 183.6 183.6 183.6 Leather 185.3 228.7 228.2 227 5 216 8 Structural steel.... 191 6 204.3 204.3 204.3 204.3 Other leather products 143.1 180.6 180.6 180.6 180.6 Other building materials 177.4 198.3 198.2 198.1 198.1 Textile Products: Chemicals and Allied Products: Clothing 144.3 163.9 164.0 164.0 164.8 Chemicals 119.1 145.0 145.2 144.0 143.1 Cotton goods 190 7 236 2 234 1 r228 7 217 8 Drugs and Pharmaceuticals 129 1 184 5 185 2 185 3 184.7 Hosiery and underwear 99.2 113.5 113.4 112.9 111.2 Fertilizer materials 110.1 117.8 117.1 115.1 119.0 Silk 60.3 85.2 76.3 73.2 71.1 Mixed fertilizers 103.4 108.6 108.6 108.6 108.6 Rayon and nvlon 40 7 43 1 43 1 43 1 43 1 Oils and fats 126 0 198 7 181 0 161 2 139.3 Woolen and worsted goods... 150.9 243.7 '244.5 '228.7 221.6 House furnishing Goods: Other textile products 168.5 249.2 247.0 '250.1 239.6 Furnishings 156.2 195.9 195.9 196.0 194.6 Fuel and Lighting Materials: Furniture 141 0 163 1 162 9 161 5 162.3 Anthracite 141.0 152.8 151.0 152.5 153.5 Miscellaneous: Bituminous coal 191.9 195.6 195.2 195.4 194.5 Auto tires and tubes 68.7 82.8 82.8 82.8 82.9 Coke 225 6 234.8 234 8 234 8 234 8 Cattle feed 240 5 261.9 244 9 245 0 240.3 Electricity 67.0 64.8 64.7 159.8 196.2 196.2 196.2 197.2 Gas 88.3 93.3 92.9 92.9 Rubber, crude 78.4 137.5 135.1 135.1 106.6 Petroleum products 115.5 120.0 119.7 120.0 120.4 Other miscellaneous 121.7 136.7 136.7 136.7 136.3 r Revised. 1 Weekly indexes are based on an abbreviated sample not comparable with monthly data. Back figures.—Bureau of Labor Statistics, Department of Labor. SEPTEMBER 1951 1187 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 1950 1951 1929 1933 1939 1941 1946 1947 1948 1949 1950 2 3 4 1 2 Gross national product 103.8 55.8 91.3 126.4 211.1 233.3 259.0 257.3 282.6 275 0 287.4 303.7 318 5 325 6 Less: Capital consumption allowances. . 8.8 7.2 8.1 9.3 12.2 14.8 17.6 19.1 21.2 20.7 21.8 22.2 22.6 22.9 Indirect business tax and related liabilities 7.0 7.1 9.4 11.3 17.3 18.7 20.4 21.7 23.8 23.3 25.3 24.3 25.9 24.8 Business transfer payments .6 .7 .5 5 .6 7 7 7 8 7 8 8 8 8 Statistical discrepancy -.1 1.2 1.4 1.6 1.7 .3 -3.2 -.8 -1.8 .4 -6.4 -3.4 .5 n.a. Plus: Subsidies less current surplus of government enterprises -.1 C1) .5 .1 .9 — .1 0 0 .3 7 — l 2 8 3 Equals: National income 87.4 39.6 72.5 103.8 180.3 198.7 223.5 216.7 239.0 230.6 245.8 260.1 269.4 n.a. Less: Corporate profits and inventory valuation adjustment 10.3 -2.0 5.8 14.6 18.3 24.7 31.7 30.5 36.2 34.8 37.4 42.2 42.9 n.a. Contributions for social insurance .2 .3 2.1 2.8 6.0 5.7 5.2 5.7 7.0 6.8 7.0 7.4 8.3 8.4 Excess of wage accruals over disbursements .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 Plus: Government transfer payments... .9 1.5 2.5 2.6 10.9 11.1 10.5 11.6 14.3 14.2 11.0 11.1 11.5 11.8 Net interest paid by government... 1.0 1.2 1.2 1.3 4.4 4.4 4.5 4.6 4.7 4.7 4.7 4.7 4.8 4.8 Dividends 5.8 2.1 3.8 4.5 5.8 6 6 7.2 7.6 9.2 8.4 9.4 11.1 8.8 9.7 Business transfer payments 6 7 5 5 6 7 7 7 8 7 8 8 8 8 Equals: Personal income 85.1 46.6 72.6 95.3 177.7 191.0 209.5 205.1 224.7 217.1 227.3 238.3 244.1 250.0 Less: Personal tax and related payments. 2.6 1.5 2.4 3.3 18.8 21 5 21 1 18.6 20.5 19.5 20.2 23.1 26.6 27.1 Federal 1.3 .5 1.2 2.0 17.2 19.6 19.0 16.2 17.8 16.9 17.5 20.3 23.8 24.2 State and local 1.4 1.0 1.2 1 3 1.6 1 9 2 1 2 5 2 7 2 7 2.7 2 7 2.8 2.9 Equals: Disposable personal income. 82.5 45.2 70.2 92.0 158.9 169.5 188.4 186.4 204.3 197.5 207.1 215.2 217.5 222.8 Less:Personal consumption expenditures 78.8 46.3 67.5 82.3 146.9 165.6 177.9 180.2 193.6 188.7 202.5 198.4 208.2 201.7 Equals: Personal saving 3.7 —1.2 2 7 9 8 12.0 3 9 10 5 6 3 10 7 8 9 4.6 16 8 9.3 21.1 NATIONAL INCOME, BY DISTRIBUTIVE SHARES Seasonally adjusted annual rates Annual totals by quarters 1950 1951 1929 1933 1939 1941 1946 1947 1948 1949 1950 2 3 4 1 2 National income . . 87.4 39.6 72.5 103.8 180.3 198.7 223.5 216.7 239.0 230.6 245.8 260.1 269.4 n.a. Compensation of employees 50.8 29.3 47.8 64.3 117.1 128.9 140.2 139.9 153.3 148.6 157.3 165.2 172.1 177.4 Wages and salaries * 50.2 28.8 45.7 61.7 111 2 122.1 134.4 133.4 145.8 141.3 149.7 157.2 163.6 168.8 Private 45.2 23.7 37.5 51.5 90.6 104.8 115.7 113.0 123.6 120.1 127.2 132.7 137.1 140.5 Military .3 .3 .4 1.9 8.0 4.1 4.0 4.2 5.1 4.4 5.0 6.6 n.a. n.a. Government civilian . . 4.6 4.9 7.8 8.3 12.7 13.2 14.7 16.1 17.2 16.8 17.5 17.9 n.a. n.a. Supplements to wages and salaries.. .6 .5 2.1 2.6 5.9 5.9 5.8 6.5 7.5 7.4 7.7 7.9 8.5 8.7 Proprietors' and rental income3.. 19.7 7.2 14.7 20.8 42.0 42.4 47.3 41.4 44.0 41.8 45.6 47.2 48.8 48.1 Business and professional 8.3 2.9 6.8 9.6 20.6 19.8 22.1 20.9 22.3 21.9 23.2 23.0 24.1 23.6 Farm 5.7 2.3 4 5 6.9 14 8 15.6 17 7 13 0 13.7 12.2 14.3 15.8 16.4 16.3 Rental income of persons 5.8 2.0 3.5 4.3 6.6 7.1 7.5 7.5 8.0 7.8 8.1 8.4 8.3 8.2 Corporate profits and inventory valuation adjustment . 10.3 -2 0 5 8 14 6 18 3 24.7 31 7 30.5 36.2 34.8 37.4 42.2 42.9 n.a. 9.8 .2 6.5 17.2 23.5 30.5 33.8 28.3 41.4 37.5 45.7 50.3 51.8 n.a. Corporate profits tax liability. . . 1.4 .5 1.5 7.8 9.6 11.9 13.0 11.0 18.6 16.9 20.5 22.5 28.5 n.a. Corporate profits after tax 8.4 — .4 5.0 9.4 13.9 18.5 20.7 17.3 22.8 20.6 25.2 27.8 23.3 n.a. Inventory valuation adjustment... .5 -2.1 -.7 -2.6 -5.2 -5.8 -2.1 2.1 -5.1 -2.7 -8.3 -8.2 -8.9 -2.3 Net interest 6.5 5.0 4.2 4.1 2.9 3.5 4.3 4.9 5.4 5.3 5.5 5.6 5.6 5.7 n.a. Not available. 1 Less than 50 million dollars. 8 Includes employee contributions to social insurance funds. 8 Includes noncorporate inventory valuation adjustment. NOTE.—Details may not add to totals because of rounding. Source.—National Income Supplement (July 1951 edition) to the Survey of Current Business, Department of Commerce. 1188 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 Seasonally adjusted annual rates Annual totals by quarters 1950 1951 1929 1933 1939 1941 1946 1947 1948 1949 1950 2 3 4 1 2 Gross national product 103.8 55.8 91.3 126.4 211.1 233.3 259.0 257.3 282.6 275.0 287.4 303.7 318.5 325.6 Personal consumption expenditures 78.8 46.3 67.5 82.3 146.9 165.6 177.9 180.2 193.6 188.7 202.5 198.4 208.2 201.7 Durable goods 9.4 3.5 6.7 9 8 16.6 21.4 22 9 23.9 29.2 26.6 34.3 29.4 31.5 25.9 Nondurable goods 37.7 22.3 35.3 44.0 85.8 95.1 100.9 98.7 102.3 100.4 105.5 104.9 111.5 109.5 Services 31.7 20.6 25.5 28.5 44.5 49.1 54.1 57.6 62.1 61.6 62.7 64.0 65.2 66.2 Gross private domestic investment 15.8 1.3 9.9 18.3 28.7 30.2 42.7 33.0 48.9 47.9 47.3 60.2 59.6 63.5 New construction *• 7.8 1 l 4 9 6 8 10.3 13.9 17 7 17.2 22.1 21 4 23.5 23.3 23.9 22.3 Producers' durable equipment 6.4 1.8 4.6 7.7 12.3 17.1 19.9 19.0 22.5 21.4 24.5 25.0 26.5 26.7 Change in business inventories 1 6 — 1 6 4 3 9 6 1 — 8 5 0 —3 2 4 3 5 2 — 7 11 8 9 3 14.4 Net foreign investment .8 2 .9 1 1 4.6 8.9 1 9 .5 -2.3 -1.6 -3.2 -2.7 -2.3 .5 Government purchases of goods and services 8.5 8 0 13.1 24.7 30.9 28 6 36 6 43.6 42.5 40.1 40.8 47.8 52.9 60.0 Federal 1.3 2.0 5.2 16.9 20.9 15.8 21.0 25.5 22.8 20.9 21.2 27.3 31.9 38.5 W No a n r war . } ..3 2.0 3 1 . . 9 3 1 3 3 . . 2 8 2 2 1 . . 5 2 }17.I 21.7 25.9 23.1 21.1 21.4 27.5 32.1 38.7 Less: Government sales s (') 0) (8) (8) 2.7 1.3 .6 .4 .2 .2 .2 .2 .2 .2 State and local 5 9 7 9 7 8 10 0 12.8 15 6 18.1 19.7 19 2 19.7 20.4 21.1 21.4 7.2 PERSONAL INCOME [Seasonally adjusted monthly totals at annual rates] Wages and salaries Divi- Year or month in s P o c e o n r m a - l e re T c o e t i a p l ts4 b T u d o i r s t s - a e l - Wag p m e C r o o o a d d m n u i d t c - y - s£d D a i r u n i y s t d i t u v r d i s e i b - s - bu S r i s e n e r d v m u ic s e e - nts G er o n v - - L b c p s e u o l o s f o t n o c s i y o t i r e r a e n i m l e - s - in O l c a t o b h m o e r r e5 i p n r r P e c a i o n r e n o d m t t - o a e l rs 6 ' i i n d n s p a t c e o e n e o n n r r d m d a e - l s s e t m T p r e f a a e n y n r t - s s - 7 i a n g N t c u r o o i r c m n a u l - e l- 8 ments ing in- tries tries ment insurdustries ance 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 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 209.5 132.1 134.3 60.2 38.8 16.6 18.7 2.2 2.8 47.3 16.0 11.3 187.1 1949 205.1 131.2 133.5 56.9 39.0 17.2 20.4 2.2 3.0 41.4 17.1 12.4 187.6 1950 224.7 142.9 145.8 63.5 41.4 18.7 22.3 2.9 3.5 44.0 19.3 15.1 206.6 1950—June 219.0 141.1 144.1 62.8 41.3 18.7 21.3 3.0 3.5 42.5 18.4 13.5 202.6 July 222.7 143.2 146.1 63.9 41.9 18.8 21.5 2.9 3.6 45.3 18.4 12.2 204.0 August 227.7 147.2 150.3 66.2 42.8 18.9 22.4 3.1 3.6 46.1 18.9 11.9 208.6 September 231.5 149.7 152.6 67.1 42.8 19.1 23.6 2.9 3.6 45.3 21.6 11.3 212.9 October 234.1 152.4 155.6 69.3 43.1 19.3 23.9 3.2 3.6 46.3 19.7 12.1 214.3 November. . . . 236.4 154.2 157.3 69.9 43.2 19.5 24.7 3.1 3.7 47.2 19.5 11.8 215.5 December 244.4 155.9 158.9 70.8 43.6 19.6 24.9 3.0 3.7 48.1 25.0 11.7 223.4 195 I—January 243.6 158.0 161.6 71.7 44.3 19.9 25.7 3.6 3.7 50.5 18.8 12.6 221.4 February 243.3 160.0 163.4 72.4 44.5 19.8 26.7 3.4 3.8 48.2 19.2 12.1 222.9 March 245.5 162.2 165.9 73.7 44.9 20.0 27.3 3.7 3.8 47.7 19.7 12.1 225.2 April 249.0 164.8 168.2 75.0 45.3 20.1 27.8 3.4 3.8 48.1 20.2 12.1 227.8 May 249.8 165.1 168.8 74.6 45.6 20.2 28.4 3.7 3.8 48.0 20.2 12.7 229.0 June 251.0 166.4 169.9 75.2 45.6 20.3 28.8 3.5 3.8 48.0 20.0 12.8 230.1 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. *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. SEPTEMBER 1951 1189 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 En o d r m o o f n y th ear 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 t l l t - Total A S u al t e o m cr o e b d i i l t e Other Loans 1 no c T m n 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 n g s l 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 1939 7,031 4,424 2,792 1,267 1,525 1,632 2,607 530 1,544 533 1940 8,163 5,417 3,450 1,729 1,721 1,967 2,746 536 1,650 560 1941 8,826 5,887 3,744 1,942 1,802 2,143 ,939 565 1,764 610 1942 5,692 3,048 1,617 482 1135 1,431 ,644 483 1,513 648 1943 4,600 2,001 882 175 707 1,119 2,599 414 1,498 687 1944 4,976 2,061 891 200 691 1,170 2,915 428 1,758 729 1945 5,627 2,364 942 227 715 1,422 3,263 510 1,981 772 1946 8,677 4,000 1,648 544 104 2,352 4,677 749 3,054 874 1947 11,862 6,434 3,086 1,151 935 3,348 5,428 896 3,612 920 1948 14,366 8,600 4,528 1,961 2,567 4,072 5,766 949 3,854 963 1949 16,809 10,890 6,240 3,144 3,096 4,650 5,919 ,018 3,909 992 1950 20,097 13,459 7,904 4,126 3,778 5,555 6,638 ,332 4,239 1.067 1950—June 17,651 12,105 6,995 3,790 3,205 5,110 5,546 ,116 3,392 1,038 July 18,295 12,598 7,343 3,994 3,349 5,255 5,697 ,133 3,527 1,037 August 18,842 13,009 7,613 4,107 3,506 5,396 5,833 ,157 3,636 1,040 September 19,329 13,344 7,858 4,213 3,645 5,486 5,985 ,197 3,741 1,047 October 19,398 13,389 7,879 4,227 3,652 5,510 6,009 ,250 3,703 1,056 November 19,405 13,306 7,805 4,175 3,630 5,501 6,099 ,298 3,739 1,062 December 20,097 13,459 7,904 4,126 3,778 5,555 6,638 ,332 4,239 1,067 1951—January 19,937 13,252 7,694 4,056 3,638 5,558 6,685 ,352 4,248 1,085 February 19,533 13,073 7,521 3,990 3,531 5,552 6,460 ,369 4,010 1,081 March 19,379 12,976 7,368 3,946 3,422 5,608 6,403 ,381 3,938 1,084 April 19,126 12,904 7,270 3,934 3,336 '5,634 6,222 ,392 3,744 1,086 May 19,207 12,920 7,248 3,980 3,268 5,672 6,287 ,398 3,793 1,096 June? 19,256 12,955 7,234 4,041 3,193 5,721 6,301 1,399 3,804 1,098 Julyp 19,133 12,898 7,166 4,056 3,110 5,732 6,235 1,398 3,743 1.094 P Preliminary. r Revised. 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) Year or month Total b m C a e n o r k c m s ia - 1 l p S c l a m o o n m a a i n e l - l s I b n t a r d n i u a k l s s - 2 I p c n l t a o o r d n i a m u a i n e l s - s - 2 u C n r i e o d n i s t l M l a e n n is e d c o e e u r l s s - m I l i r n o z o e a s a a d p u n n ti a e d r s o i r e r n n d 8 - b m C a e n o r k c m s ia - l l p S c l a m o o n m a a i n e l - l s b I a n tr n d i k u a s l s - 2 p I c a n l t o o n r d i m a i u a e n l s - s - 2 u C n r i e o d n i s t 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 1950 5,555 2,431 1,084 291 203 525 157 864 3,875 1,946 481 358 894 1950—June 5,110 2,233 978 275 187 474 147 816 379 175 46 34 93 5 255 2,316 995 282 192 495 149 826 381 166 45 32 84 August 5,396 2,401 1,009 290 197 514 150 835 387 166 46 33 88 September.. 5,486 2,462 1,010 295 201 524 150 844 356 149 40 32 76 October 5,510 2,460 1,026 294 201 524 152 853 298 149 39 28 66 November. . 5,501 2,435 1,037 292 200 521 153 863 257 165 34 27 64 December... 5,555 2,431 1,084 291 203 525 157 864 289 234 37 29 72 1951—January.... 5,558 2,438 1,090 289 202 518 158 863 326 162 39 28 67 February... 5,552 2,441 1,094 286 202 515 158 856 296 158 35 27 64 March 5,608 2,476 1,112 286 204 517 160 853 368 207 43 33 79 April '5,634 2,497 1,119 286 205 514 161 '852 340 184 41 31 72 May 5,672 2,506 1,131 288 207 518 162 860 359 198 44 33 82 5,721 2,515 1,151 288 209 522 164 872 356 204 44 35 86 July? 5,732 2,492 1,167 288 211 524 166 884 338 206 45 35 76 P Preliminary. r Revised. 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 July amounted to 102 million dollars, and other loans made during July were 11 million. *sg| 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. 3 Includes only loans insured by Federal Housing Administration adjusted by Federal Reserve to exclude nonconsumer loans. 1190 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 Per- E y m e n o a d r n t o 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 n a d e r i n d e e l r t - s F s t t u o u r r r n e e i s - H s a a h t p o o n o p u r c l l s e d 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 s l Year or month Total c P ha u s r e r - d eta D i l l o i a r n ec s t c d r h e p a ir a t u n a e s r d i c e - l t d , e lo m r t a n a i n o o n iz d d n s a - 1 - 2 i l s m c n o o a s a e n s t n n a a h s t l lhouses Outstanding at end of 1939 1,525 377 536 273 93 246 period: 1940 1,721 439 599 302 110 271 1948 3,563 570 736 751 636 870 1941 1,802 466 619 313 120 284 1949 4,416 854 915 922 781 944 1942 1,135 252 440 188 76 179 1950 5,645 1,143 1,223 1,267 905 1,107 1 1 1 1 1 1 1 9 9 9 9 9 9 9 4 4 4 4 4 4 4 5 3 6 7 4 8 9 2 3 1 1 , , , , 9 1 5 0 6 7 7 3 0 6 9 9 0 1 5 4 1 7 7 5 6 1,0 3 6 8 1 1 1 1 3 5 7 7 9 8 0 7 0 4 2 8 3 2 2 2 3 5 9 7 9 8 8 9 8 3 5 6 6 9 3 7 5 0 2 3 5 1 8 5 4 0 5 7 1 7 1 9 0 0 8 8 1 1 1 5 8 5 5 6 5 4 7 9 7 6 3 2 4 3 4 4 1 1 1 1 0 1 8 0 1 0 7 5 1 8 4 3 9 4 1950— J O A S N D J u u e c u e o l n p t y g c v o e t e u e b e m s m e m t r b b b e e e r. r r . . . . . . . . 5 5 5 5 5 5 5 , , , , , , , 6 2 0 6 7 4 6 6 9 8 2 8 9 4 1 1 5 6 4 3 5 1 1 1 1 1 1 1 , , , , , , , 1 1 1 1 1 0 1 7 1 5 4 4 5 8 7 0 9 3 3 0 0 1 1 1 1 1 1 1 , , , , , , , 2 0 1 2 2 2 2 1 9 5 5 3 2 5 7 6 8 4 4 3 1 1 1 1 1 1 1 1 , , , , , , , 1 2 2 0 1 2 2 1 8 6 6 7 5 6 2 2 7 4 8 8 1 9 9 8 8 8 8 9 9 0 0 5 7 0 3 1 5 5 1 2 7 4 1 1 , , , , , , , 0 0 0 1 1 1 1 4 6 0 0 8 0 0 0 0 7 5 3 8 0 1950 3,778 1,245 1,029 710 794 1951—January 5,610 1,116 1,219 1,268 890 ,117 1950 February.... 5,530 1,096 1,222 1,217 877 ,118 June 3,205 1,032 947 561 665 March 5,516 1,079 1,232 1,190 874 ,141 July 3,349 1,081 976 597 695 April 5,490 1,072 1,242 1,153 875 ,148 August 3,506 1,123 998 658 727 May 5,489 1,083 1,248 1,123 882 1,153 September 3,645 1,159 1,028 702 756 June? 5,481 1,090 1,246 1,098 883 1,164 October. . . 3,652 1,170 1,019 705 758 Julyp 5,427 1,085 1,230 1.066 886 1,160 November 3,630 1,172 1,003 702 753 December. 3,778 1,245 1,029 710 794 Volume extended during month: 1951 1950—June 768 165 184 154 82 183 January... 3,638 1,201 982 694 761 July 789 174 191 167 80 177 February. 3,531 1,162 956 677 736 August 799 157 190 187 82 183 March 3,422 1,133 924 655 710 September... 782 152 174 211 75 170 April , 3,336 1,103 905 636 692 October 647 123 132 166 71 155 May 3,268 1,084 890 616 678 November... 517 91 101 124 55 146 JuneP.. . . , 3,193 1,055 874 602 662 December. . . 562 94 117 141 48 162 Jl 3,110 1,018 857 590 645 1951—January 606 98 137 147 47 177 February.... 536 93 132 117 41 153 March 638 109 160 123 51 195 April 625 118 153 125 56 173 May 683 140 166 132 65 180 JuneP 666 143 160 115 64 184 JulyP 639 137 150 113 62 177 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 [Estimates. In millions of dollars] Retail instal- Repair Personal ment paper 2 and instal- Retailinstal- Repair Personal Year or month Total modern- ment ment ]p3apper 2e i nansdt a lm A o u b to il - e Other l i o z a a n ti s o n i2 l c o a a s n h s Year or month TToottaall m A o u b to il - e Other l mm i o z a oo a n d t d i s ee o rr ! n nn 2 -- l m c o a a e s n n h s t Outstanding at end of period: Outstanding at end 1 1 1 9 9 9 5 4 4 0 8 9 3 2 3 4 8 9 3 6 1 . . . 2 2 0 1 6 9 1 6 3 8 . . . 6 6 5 4 6 7 3 3 9 . . . 4 1 7 5 5 5 1 5 4 . . . 7 4 9 1 1 1 3 2 3 7 4 1 . . . 9 5 1 o 1 1 1 f 9 9 9 4 4 5 p 8 9 0 eriod: 2 1 1 2 9 7 6 4 7 . . . 9 7 1 3 4 57 3 8 . . . 9 5 3 4 2 3 1 3 1 . . . 7 4 1 5 6 7 . . . 5 0 3 1 1 12 1 1 0 3 0 . . . 6 3 1 1950— D A S O J N J u u e e u o c l n p c y v g t 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 3 3 3 3 9 9 9 8 8 9 7 1 5 2 0 6 9 1 . . . . . . . 6 9 0 4 4 8 0 1 1 1 1 1 1 1 2 1 2 1 1 2 1 1 0 8 9 1 1 5 . . . . . . . 6 5 4 5 9 9 8 8 7 7 7 7 7 7 0 9 6 1 9 9 3 . . . . . . . 3 2 7 9 3 9 4 5 5 5 5 5 5 5 4 5 5 6 6 4 4 . . . . . . . 2 7 5 1 1 9 9 1 1 1 1 1 1 1 3 3 3 3 3 3 3 8 7 6 9 7 6 3 . . . . . . . 7 7 9 7 1 3 0 1950— S D J A O N J u u e e u o c l n p c y g v t e t o e u e e m b s m m t e b b b r e e e . r . r r . . . . 2 2 2 2 2 2 2 2 2 1 2 1 0 2 6 3 4 4 9 8 3 . . . . . . . 9 0 3 9 7 3 8 5 5 5 5 5 5 5 4 7 2 5 7 7 7 . . . . . . . 2 8 3 9 4 9 3 3 3 3 4 4 4 4 4 5 9 1 1 0 1 . . . . . . . 2 3 9 7 1 9 1 6 7 7 7 7 7 7 . . . . . . . 9 2 3 4 3 3 3 1 1 1 1 1 1 1 1 1 1 1 1 2 1 6 7 5 8 7 0 7 . . . . . . . 4 5 1 2 6 6 8 1951— A J J F M M J u u e p a l a a n b n r y y r i r p u e c l u h a P a r . y r . y . . . . . . . 3 3 3 3 3 3 3 8 8 8 8 8 8 8 5 2 2 2 6 5 4 . . . . . . . 7 5 5 0 9 3 4 1 1 1 1 1 1 1 1 1 1 2 1 1 1 7 6 6 0 9 6 8 . . . . . . . 2 5 4 6 4 9 0 7 7 7 7 7 7 7 2 8 5 7 4 6 0 . . . . . . . 9 2 4 3 4 7 4 5 5 5 5 5 5 5 2 3 2 1 2 2 2 . . . . . . . 4 6 6 8 0 9 3 1 1 1 1 1 1 1 3 3 3 3 3 3 4 7 5 7 9 9 9 1 . . . . . . . 7 9 9 8 7 1 3 1951— A J J F M M J u l e p a n a a b r n e r y i r c u l P u h a a r r y y .. . . . 2 2 2 2 2 2 2 3 2 3 2 2 2 3 4 5 2 6 5 8 0 . . . . . . . 7 9 6 6 6 1 1 5 6 5 5 5 5 5 0 9 9 6 7 6 7 . . . . . . . 2 5 8 8 1 8 8 4 4 4 3 3 4 4 0 0 9 0 9 0 0 . . . . . . . 2 0 6 8 6 8 5 6 7 7 7 7 7 7 . . . . . . . 9 2 1 1 0 0 0 1 1 1 1 1 1 1 2 2 2 2 2 2 2 3 5 2 0 1 6 4 . . . . . . . 4 9 5 3 8 8 1 Volume extended during month: Volume extended 1950— D S J A O N J u u e e u o c l n p c y v g t e t o e e e u m b m m s e t b . b b r e e e . . r . r r . . . . . 5 5 4 4 3 4 5 7 7 2 3 0 0 1 . . . . . . . 2 2 7 5 5 3 1 1 1 1 1 1 8 9 6 1 5 3 5 . . . . . . . 7 1 2 7 7 3 4 1 1 8 8 9 8 7 0 1 . . . . . . . 0 9 6 9 6 5 0 3 3 4 3 3 2 4 . . . . . . . 9 0 9 9 6 3 1 2 2 2 2 1 1 1 2 2 0 1 8 7 9 . . . . . . . 2 2 6 5 7 9 1 d 1 u 9 r 5 i 0 n — g S D A J O N J m u u e u e o c l n p o c g y v t e t n o e u e e m t b s m m h t e b : b b r e e e .. r r r . . . . 3 3 3 2 2 3 3 5 7 0 9 4 2 5 . . . . . . . 4 4 4 3 8 8 5 6 6 6 8 9 8 7 . . . . . . . 1 8 3 1 9 1 5 5 6 4 3 3 5 7 . . . . . . . 8 9 3 9 0 7 3 0 0 0 0 0 0 0 . . . . . . . 4 5 4 3 5 5 4 2 1 1 1 1 1 1 0 7 8 9 9 9 7 . . . . . . . 7 2 9 9 5 6 1 1951— A J F J M M J u u e p a l n a a b r y n y e i r r p u l P u c a h . a r r y . . y . . . . . . . . . . 4 4 3 4 4 4 4 8 4 8 6 2 8 9 . . . . . . . 5 2 8 9 8 3 3 1 1 1 1 1 1 1 3 5 5 5 0 2 0 . . . . . . . 2 0 1 6 4 6 8 8 8 7 8 7 7 7 . . . . . . . 2 5 3 5 8 8 2 3 3 3 3 2 3 2 . . . . . . . 9 8 3 0 8 3 5 2 2 2 2 2 2 1 2 0 1 2 0 2 8 . . . . . . . 2 7 5 0 9 9 0 1951— A J F J M M J u u e p a n l a a b r y n e r y i r p u c l P u h a a r r y y .. . . . 3 2 2 3 3 3 3 2 7 6 4 4 9 6 . . . . . . . 4 9 5 3 8 1 1 6 6 9 7 8 8 7 . . . . . . . 4 8 4 0 9 4 8 4 4 3 4 4 4 5 . . . . . . 4 3 9 8 9 9 2 0 0 0 0 0 0 0 . . . . . . . 3 3 4 4 5 5 5 2 2 2 2 1 2 1 0 1 1 1 1 7 7 . . . . . . . 2 6 7 2 3 4 7 P Preliminary. l Includes not only loans insured by Federal Housing Administration but also noninsured loans. 2 Includes both direct loans and paper purchased. SEPTEMBER 1951 1191 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 RECEIVABLE1 Pe fr r o c m en m t p a o g r n e e c t h e c d h i a n n g ge f m P ro e o m r n c t e h c n o t o y a r f e r g e a e p s r r p e c o c h n e a d d n i i g n n e g g Year or month Instalment accounts a C c h co ar u g n e ts item Depart- Furni- h H o o ld u a se p - - Depart- 1 J 9 u 5 l 1 y ? J 1 u 9 n 5 e 1 M 19 a 5 y 1 1 J 9 u 5 ly 1? J 1 u 9 n 51 e M 19 a 5 y 1 s m to e r n e t s s t to u r r e e s p s l t i o a r n e c s e s m to e r n e t s Net sales: 1950 Total -10 -5 + 10 -24 -5 -5 June 17 10 10 51 C C a re s d h it s a s l a e l s es: -9 -1 +12 -9 +10 +3 J A u u ly gust 1 1 8 7 1 1 1 1 1 1 1 1 4 5 9 0 Instalment -11 2 + 10 -29 -9 -11 September 18 11 10 51 Charge account -9 -8 +6 -17 +4 +9 O N c o t v o e b m er ber 1 1 8 7 1 1 1 0 1 1 1 0 5 5 1 1 Accounts receivable, end December 18 11 10 49 of month: Total -3 -2 -1 -8 -2 +1 1951 Instalment -3 2 -2 -9 -5 -2 January 19 10 12 50 February 17 10 11 46 Collections during March 19 11 12 50 month: April 18 11 11 47 Total -6 -1 +1 0 +10 + 12 May 18 11 11 49 Instalment -6 +2 +1 -1 +6 +4 J T u u l n yp e 1 1 9 8 1 1 1 1 1 1 2 2 4 4 6 9 Inventories, end of month, at retail value. -4 -5 -3 +29 +31 +34 P Preliminary. 1 Collections during month as percentage of accounts outstanding at Preliminary. beginning of month. DEPARTMENT STORE SALES, ACCOUNTS RECEIVABLE, AND COLLECTIONS Index numbers, without seasonaladjustment, 1941 average=100 Percentage of total sales Sales during month Accounts receivable Collections during Year or month at end of month month 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 a t l- 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 al t - 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 213 216 200 212 165 196 200 224 51 8 41 1950 220 213 247 223 233 210 250 237 48 10 42 1950—june 203 198 209 207 219 194 230 226 49 9 42 July '183 172 '261 '180 230 184 229 216 47 12 41 August 210 196 292 209 241 191 250 212 46 12 42 September 234 217 306 238 256 210 269 221 46 12 42 October 229 216 269 236 260 216 283 244 47 10 43 November 257 249 248 268 259 233 278 251 48 9 43 387 389 343 395 276 314 294 256 50 8 42 212 195 233 228 269 269 318 354 45 10 45 February 179 167 211 187 262 236 289 279 46 10 44 March 220 210 234 228 255 227 318 268 48 9 43 May 2 1 1 9 7 8 2 1 0 9 9 2 2 1 0 9 5 9 2 2 0 2 6 9 2 2 4 3 4 5 2 2 2 2 0 4 2 2 8 7 6 8 2 2 4 4 4 4 4 4 8 8 9 8 4 4 3 4 June 207 208 188 211 226 218 275 245 50 8 42 Julyp. 162 163 165 160 215 195 252 228 50 9 41 P 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. 1183. 1192 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CURRENT STATISTICS FOR FEDERAL RESERVE CHART BOOK BANK CREDIT, MONEY RATES, AND BUSINESS * 1951 Chart Chart book book page Aug. Aug. Aug. Aug. Aug. page Aug. Aug. Aug. Aug. Aug. 15 22 29i 15 22 29 i WEEKLY FIGURES2 In billions of dollars WEEKLY FIGURES 2—Cont. Per cent per annum RESERVE BANK CREDIT, ETC. MONEY RATES, ETC. Reserve Bank credit, total 24.28 24.05 24.36 24.18 24.00 U. S. Govt, securities: U. S. Govt. securities, total. 23.08 23.12 23.15 23.08 23.07 Bills (new issues) 23 1.611 1.652 1.660 1651 1.645 M G T M r o e T o e l m n d a o N B B s e B t b s u a y i i e o o t l l l r o r l l n t y i s e c n ( d b s W k s c a c a a n e i s r n k d h c d . u ) r a l c e a n e s t d r e i t o r i d v n fi e e c s p a : o t , e s s i ts... 2 3 2 2 2 3 3 2 2 1 1 1 5 6 7 1 9 . . . . . . . 8 6 8 7 8 1 5 2 9 7 6 4 0 7 2 2 1 1 1 5 7 6 9 1 . . . . . . . 8 5 7 7 9 3 6 2 0 6 0 0 3 0 2 2 1 1 7 1 5 6 1 9 . . . . . . . 8 7 6 9 8 2 6 2 8 9 3 0 9 4 2 2 1 1 7 5 1 6 1 9 . . . . . . . 8 7 6 9 8 1 5 2 3 9 3 0 7 7 2 1 2 1 5 1 6 8 1 8 . . . . . . . 8 8 6 8 0 5 8 2 5 9 0 3 6 7 H : i o 9 3 A 1 g B r - - 5 h p a a 1 5 - a a o 2 y g r y e r a e m a a t a r e d o s r e s n b o t o m h r n s u m d n s o i : c re ip al bonds 2 .. 3 , 2 2 2 2 2 2 5 3 3 5 5 5 3 2 2 2 1 1. . . . . . 9 9 7 6 5 0 3 1 2 2 6 2 3 2 2 2 1 1 . . . . . . 5 9 5 7 0 8 2 1 9 3 5 9 2 3 2 2 1 1 . . . . . . 5 5 8 0 7 9 1 6 7 3 1 0 2 2 3 2 1 1 . . . . . . 5 8 6 0 8 5 7 8 2 6 0 5 2 2 3 2 1 1 . . . . . . 8 6 8 4 5 0 7 8 5 5 9 2 T R R o e e N N C R C C t q q a u h e u h o e e l a s w w i i i i u v c c r r e ( n e e a a e r w Y Y d d t v g g r r e a e o o y o o e r g r r e k c e k k b s l i r ) y a e t e : y C C n r s v a k e i i b e t v t s r y y a s v e n e r ( k a s W s g e e ) d : (w .) e .. e . k ly 2 4 4 4 4 4 4 1 4 5 4 7 8 1 1 . . . . . . . 9 3 9 4 2 3 4 5 7 7 4 8 0 3 1 4 5 4 7 1 8 1 . . . . . . . 9 9 4 5 3 2 4 4 2 6 0 0 9 4 1 4 7 5 4 1 8 1 . . . . . . . 9 9 5 5 3 3 4 1 1 2 0 0 0 7P1 4 5 7 4 1 8 1 . . . . . . . 9 5 4 9 3 4 3 2 5 9 1 0 7 0 P1 4 7 5 1 4 1 8 . . . . . . . 2 9 4 3 9 3 4 9 3 6 6 2 0 8 S V t o o T I R P l c n u u o a k d m b t i u a l l p r e l i s o r c t o i a r c u f d i e a t t s l i r l a i ( d t 1 y i 9 n 3 g 5 ( - m 39 il = l, 1 s 0 h 0 ar ) e : s) 2 2 2 2 2 7 7 7 7 7 1. 1 1 1 1 7 4 1 7 9 1 7 3 9 6 I 1 n . 1 1 1 1 5 8 4 9 1 2 u 2 9 9 4 nit 1. 1 1 1 1 in 4 8 4 1 9 d 4 2 7 5 8 icat 1 e . 1 1 1 1 d 2 8 4 1 9 2 1 5 5 8 1 2 1 1 . 1 4 0 4 1 8 7 1 9 5 4 Reserve city banks 4 7.30 7.30 7.34 6.21 7.33 Country banks 4 4.89 4.91 4.91 P4.92 P4.90 PRODUCTION AND DISTRIBUTION Ex A N C ce l h e l s w i s c m a r Y g e e o m s o e r b k rv e e r C e s i : ty - - . . . 0 0 6 1 1 1 . . . 0 0 7 2 1 7 ( (» 3 . ) ) 76 P ( 3 . 7 ) 0 7 1 P () . 59 Pro S A C d t r u e u u t e o c d l t m e i ( o t o p h n b e o : i t l u r e o s . l ( e t t u o h m n o s u ) s . cars)... 6 6 6 6 2,0 1 2 1 9 5 2,02 9 1 5 2,0 1 2 2 9 2 2,0 1 0 3 7 3 1,9 1 9 3 5 2 R C e o s u e n r t v r e y c b i a ty n k b s a e n ks 5 . . 1 4 4 9 . . 1 5 6 9 . . 1 6 5 0 P. . 6 1 3 4 P. 46 Bit ( u th m o i u n s o . u b s b c ls o . a ) l (mill, tons) . 6 6 7 7 6, 1 1 . 2 6 1 7 6, 1 1 . 5 7 1 0 6, 1 1 . 5 7 9 2 6, 1 1 . 4 8 0 0 1.76 Bo A N C R rr l h e e l o w s i w c e m a r i Y v e g n m e o g o s r b c k : e i t r y C i b ty anks 5 ( . . . 4 2 1 0 ) 5 3 8 . . . . 0 1 3 1 1 7 6 3 ( . . . 4 0 2 0 ) 7 2 9 (4 . . . ) 0 1 1 4 0 7 . . . . 3 0 2 0 4 4 3 1 Fre P M E i a l g e e c p h c a a e t t t r r r s c b i ( ) c a o m : r a p l i o r o l d l a w , d l e ( i b t r n h s g ( o . s m ) u ( i s l t . l h . t o k o u w n s . . s h ) r . s .. . ) 6 7 6 8 0 8 7, 2 2 0 2 6 03 2 9 7, 2 2 0 2 6 7 3 0 2 7,1 2 2 6 2 8 4 4 4 7, 2 2 0 2 8 77 6 6 7,1 2 2 4 1 8 6 7 6 Country banks .04 .04 .06 .03 .06 Total 69 813 809 829 839 829 Miscellaneous 69 380 376 385 392 394 MEMBER BANKS IN LEADING CITIES Department store sales All reporting banks: (1935-39=100) 70 254 252 268 279 303 Loans and investments 70.10 70.03 70.31 70 33 70.49 U. S. Govt. securities, total. 31.00 30.92 30.95 30.98 30.93 PRICES Bonds 19.44 19.41 19.42 19.43 19.49 Wholesale prices: Notes and certificates.... 8.91 8.91 8.86 8.84 8.85 Indexes(1926=100): O L D U o t . e B h a m S e n il . r a s l s , n G s d e t o o c v d u ta t e r . l i p t d i o e e s s p it o s s i a ts djusted.. 5 3 2 2 6 0 2 . . . . 3 6 6 8 4 2 5 1 8 9 5 3 0 2 6 2 2 . . . ^ 6 5 9 1 4 3 9 9 8 5 4 3 9 2 2 3 6 . . . . . 1 6 9 6 7 5 7 1 0 6 3 5 2 2 6 3 0 . . . . 7 5 3 1 7 2 8 0 7 0 3 5 2 6 2 2 0 . . . . . 5 9 6 7 9 2 9 4 5 8 Ba T F F O s o i a o t c h r o t m a e d c l r s o p m c r o m o m d o m u d c i o t t d s ie i s ties 7 7 7 7 5 5 5 1 1 1 1 6 7 8 8 6 7 9 5 . . . . 6 9 9 9 1 1 1 16 8 7 9 6 8 7 2 . . . . 3 7 8 0 1 1 1 1 6 7 8 9 6 7 0 7 . . . . 1 2 9 4 1 1 1 1 7 8 8 6 6 8 5 6 . . . . 7 6 9 0 1 1 1 1 8 8 7 6 8 7 6 5 . . . . 7 4 8 9 Commercial 19.12 19.17 19.38 19 50 19.50 (Aug. 1939=100): F R O o e t T U O r h a l e o . p t r h t e u S a e s r l . r c t a G h s t a e e o s c v i u n t r . g it s i s e e e c s c u u r r it it i i e e s s . : . 5 2 5 1 . . . . . 5 8 6 0 4 5 7 9 1 8 5 5 1 1 . . . . . 5 9 5 8 3 6 1 5 8 7 5 5 1 1 . . . . . 5 5 8 8 3 6 1 5 9 3 5 5 1 1 . . . . 8 5 8 4 3 1 7 9 7 4 5 5 1 1 . . . . 4 8 5 4 7 C 8 Se T F H l R I e n o o u i c d d o t t b u e a e d b d l s s s e t t r u r ( m i c f a f ( e a l s c n t e e m t n s r i t a s a p t l e e p s r r : i e a l r b l s l . b ) .) 7 7 T 7 T 1 8 8 3 3 3 2 3 6 1 5 6 4 4 2 2 . . . . . 9 8 8 4 0 3 3 3 6 3 2 1 5 6 1 4 6 2 . . . . . 2 9 8 8 0 3 3 3 6 2 0 3 5 9 5 7 0 2 . . . . . 1 3 9 6 0 3 3 3 2 6 3 0 5 3 0 9 3 2 . . . . . 3 6 9 7 0 3 3 3 3 5 0 6 2 0 7 4 2 3 . . . . . 7 7 3 8 0 New York City banks: Steel scrap (dollars per ton) 78 43.0 43.0 43.0 43.0 43.0 Loans and investments 19.83 19.61 19.65 19.59 19.83 Copper (cents per lb.).... 78 24.5 24.5 24.5 24.5 24.5 U. S. Govt. securities, total. 7.86 7.69 7.65 7.66 7.72 Cotton (cents per lb.) 78 35.8 35.1 35.1 35.0 34.5 Bonds, total holdings.... 5.25 5.24 5.22 5 21 5 28 Print cloth (cents per yd.). 78 15.5 15.3 14.8 15.2 15.2 Due or callable—5 years 3.90 3.89 3.87 3.87 3.94 Wool tops (cents per lb.). . 78 250.8 254.7 239.8 236.7 228.6 Notes and certificates.... 1.83 1.80 1.77 1.76 1.78 Wool (cents per lb.) 78 205.0 205.0 205.0 205.0 205.0 Bills .78 64 .66 .68 .66 Selected foodstuffs: Demand deposits adjusted.. 15.42 15.35 15.12 15.32 15.62 Winter wheat (cents per U. S. Govt. deposits .73 .77 .83 .80 .71 bu.) 79 231.9 231.4 231.7 233.0 232.8 Interbank deposits 4.16 4.11 4.19 4.07 3.9' Corn (cents per bu.) 79 175.2 178.5 180.9 179.0 179.6 Time deposits 1.48 1.47 1.46 1.47 1.50 Steers (dollars per 100 lbs.) 79 35.71 35.75 35.55 35.63 36.03 Loans, total 10.01 9.96 10.07 10 0110.13 Hogs (dollars per 100 lbs.) 79 23.50 23.18 22.96 22.35 21.51 Commercial 6.84 6.83 6.93 6.98 6.97 Cows (dollars per 100 lbs.) 79 24.03 24.38 24.38 24.38 24.38 For purchasing securities: Coffee (cents per lb.) 79 52.8 53.3 53.7 53.8 53.8 To brokers: Cocoa (cents per lb.) 79 35.0 35.7 35.1 35.2 35.6 OnU. S. Govts V .29 .20 .17 .17 .22 Butter (cents per lb.) 79 66.6 66.7 66.0 66.1 66.6 On other securities... 1' .80 .76 .73 .70 .69 Eggs (cents per doz.) 79 45.4 46.2 48.5 53.0 54.0 To others V .26 .25 .25 25 25 Real estate and other.... 1! 1.80 1.81 1.81 K81 l"83 Banks outside New York City: Loans and investments 15 50.27 50.42 50.66 50.74 50.66 U. S. Govt. securities, total.. 1 23.14 23.23 23.30 23.33 23.21 Bonds 1 14.20 14.18 14.21 14.22 14.20 Notes and certificates.... 1 7.08 7.11 7.08 7.08 7.07 Bills 1 1.87 1.95 2.02 2.03 1.9- Demand deposits adjusted.. 15 34.96 34.84 34.79 34.97 35.35 U. S. Govt. deposits 15 2.08 2.18 2.33 2.30 2.0. Interbank deposits 15 6.94 7.29 7.5C 7.16 6.86 Time deposits 1 13.94 13 96 13.97 13 97 14.00 Loans, total 1 22.48 22.52 22.69 22! 75 22.7" Commercial 1 12.28 12.34 12.45 12.53 12.53 Real estate 1 5.06 5.06 5.07 5.08 5.0J For purchasing securities. 1 .74 .71 .70 .69 .7 Other 1 4.56 4.57 4.57 4.57 4.54 For footnotes see p. 1197. SEPTEMBER 1951 1193 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CURRENT STATISTICS FOR FEDERAL RESERVE CHART BOOK—Continued Chart 1951 Chart 1951 book book page May June July > page May June July : In billions of dollars Per cent per annum MONTHLY FIGURES MONTHLY FIGURES—Cont. DEPOSITS AND CURRENCY MONEY RATES, ETC. De T p o o t s a i l t s d a e n po d s c it u s r a re n n d c c y u :e rrency 6 P179.10 P180.80 P181.00 T C r o e r a p s o u r r a y t e b b il o ls n d (n s: ew issues). 22 1.578 1.499 1.593 Total deposits adjusted and currency 6 P173.70 P174.20P176.00 Aaa 22 2.88 2.94 2.94 U T D C i . u e m m r S r e . e a n G n d c d e o y p v d o t o e s . u i p t d t o s s e s i p a d it o d e s s j u i b a t s d a s t n j e u k d s s t ed 6 6 6 6 P z P > 5 P 2 8 9 5 4 9 . . . . 9 4 5 3 0 0 0 0 P P P 2 P 8 5 5 6 9 9 .O . . . 6 5 8 O 0 0 0 P P P 9 P 2 6 0 5 5 0 . . . 8 0 1 1 0 0 0 0 S F C . t o o B m R c a k m . a B y er i a e c n l i k d a l s d : p is a c p o e u r nt rate.. 2 2 2 2 2 2 3 2 1 . . .1 7 4 7 5 0 3 2 1 . . . 4 3 7 9 1 5 3 2 1 . . . 5 3 7 3 1 5 Money in circulation, total 7 27.52 27.81 27.85 Dividends/price ratio: $ C B 1 o i 0 l i l n s a s o n , f d $ $ 1 $ 5 , 2 0 $ 0 2 a b , n i a l d l n s o d v $ e 5 r bills 7 7 7 1 4 4 8 . . . 7 2 5 1 6 5 1 4 8 4 . . . 7 2 7 5 9 8 1 4 8 4 . . . 8 7 2 1 5 9 P C r o e m fe m rr o e n d s s t t o o c c k k 2 2 6 6 4 6 . . 1 5 5 5 4 6 . . 1 7 7 9 6.38 Annual rate In unit indicated Turnover of demand deposits: 5 New York City 8 30.9 33.1 31.4 Other leading cities 8 22.0 22.0 21.3 Margin requirements (per cent) 28 75 75 75 Stock prices (1935-39 =100), total... 28 174 172 173 In billions of dollars Volume of trading (mill, shares) 28 1.63 1.30 1.33 COMMERCIAL BANKS Stock market credit (mill, dollars): L C o a L U a sh o n . s a S a n a s . s s n G e e d t o s i v n * t. v e s s e t c m ur e i n ti t e s s , e t otal • 9 9 9 9 P P P P 1 2 5 5 2 9 8 4 5 . . . . 6 1 5 1 0 0 0 0P P P P 1 5 3 5 2 5 0 8 6 .O . . . 4 6 2 O 0 0 0 ' P P P 1 3 5 5 2 1 4 8 5 . . . . 0 6 6 9 0 0 0 0 M C B C u a u o n s s n t t k e o o y m m lo e b e a r r o n s s s r ' ' r o f d r w e e b e e i d t c r b e a d l i a t n b ce a s la nces 28, 2 2 2 2 9 9 8 9 1,2 6 6 8 8 8 0 5 7 1 7 5 1,2 6 6 8 7 0 3 8 5 3 4 0 1,2 5 6 8 6 7 7 2 6 2 9 5 Other securities • 9 P12.50 P12.60 P12.80 Holdings of U. S. Govt. securities: Within 1 year: In billions of dollars Total 10 16.14 21.61 Bills 10 2.98 3.75 Certificates 10 2.75 GOVERNMENT FINANCE Ov N T N B B e o r o o o o t n n t t 1 a e e d d l s s s s y a e a ( ( a n n o 5 r d v d - : 1 e b r b 0 o o 1 y n n 0 r d d s s y s . ) r ( s 1 . - ) 5 yrs.) 1 1 1 1 1 0 0 0 0 0 3 2 1 2 6 5 4 3 . . . . . 7 2 8 8 1 7 4 2 3 6 2 2 1 6 2 0 9 5 . . . . . 2 7 8 9 1 8 8 5 1 0 Gr T os o s N S S B t a a p o o d l v e n t e c i e ( d b n i s d s t a g , i l s r o ( c e i m e f b s c r s t o t a t u h i n r a e f k d e i n s c e s d U a , t a t g s . e b a s S u l v , e a . i r a n G i a s n g n s o s d u t v e e n e e b s o r d ) i n l ) t l m s e s e . n . t . : . 3 3 3 3 3 0 0 0 0 0 2 3 8 5 6 5 4 7 5 0 5 . . . . . 4 1 0 7 6 2 2 5 7 3 2 3 5 6 7 5 4 5 8 8 5 . . . . . 6 3 9 9 2 5 9 3 9 5 2 3 6 6 7 5 4 0 5 8 5 . . . . . 3 4 7 6 9 0 6 1 9 8 MEMBER BANKS Investment bonds, guaranteed All member banks: debt., etc 30 17.27 17.29 16.24 L T R D B B o i e a a e m L O U a s l l m a a e n o e . t n n r h a s a v S c c d n e n e a e e r . d e s s s s n p G s d d o d d e o e s c u u v i p i u e e t n t o s r . v f t i s r t o s e i i o e t e s s b m c s t m a u a n r d b e i k j t a n u i s n e t s s s k t , e s d to t • a l 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 1 4 2 4 7 1 0 1 1 6 5 9 8 6 5 0 0 8 . . . . . . . . . 5 3 6 1 6 6 9 4 8 5 8 7 1 9 5 2 0 9 1 4 4 2 7 0 1 1 1 7 9 5 9 6 6 0 1 9 . . . . . . . . . 0 5 1 9 2 5 8 0 3 7 1 2 5 5 2 4 8 1 1 4 4 3 1 7 1 0 1 6 5 0 9 0 7 6 9 1 . . . . . . . . . 1 7 6 2 5 4 6 2 2 2 6 6 1 0 4 4 3 3 Ow T n o e C F F I C S I M t n n r . a e t o o s d s a u l d m h R r : u t i t . p e i v u r m p . o a a i a a d B g n r e l o n a u e c r a f s c d t n a e n i a i l c U o k a s v l c i o l n s e i o . * c n s s b m S a g e a l a . s p n n G g a b k d o n o s a i v v n e * t t t r k s s . u « s . « s s ' t e c f u u r n it d i s e . s : . . 3 3 3 3 3 3 3 3 1 1 1 1 1 1 1 1 4 5 2 6 2 1 1 2 8 1 0 7 5 7 0 . . . . . . . . 5 8 3 3 0 3 9 9 1 0 0 0 0 3 0 0 5 4 2 6 2 1 1 0 2 8 5 0 8 7 0 . . . . . . . . 0 9 9 4 8 9 0 2 0 6 8 0 0 0 0 0 4 23 1 . . 0 0 8 5 Central reserve city banks: Miscellaneouse 31 11.00 10.90 Loans and investments, total 12 25.30 26.27 25.42 Marketable public issues: Loans 12 12.15 12.51 12.32 By class of security: U. S. Govt. securities 12 10.76 11.32 10.57 Bills—Total outstanding 32 13.61 13.61 14.41 Other securities 12 2.39 2.44 2.53 Commercial bank and F. R. Demand deposits adjusted * 12 19.31 19.34 19.42 Bank 32 3.64 4.28 Time deposits 12 2.95 3.02 3.00 F. R. Bank 32 .65 .53 " ' '.57 Balances due to banks 12 4.89 5.01 5.01 Notes and certificates—Total Reserves 12 6.24 6.53 6.32 outstanding 32 43.80 45.31 45.88 Reserve city banks: Commercial bank and F. R. Loans and investments, total 13 39.71 40.05 40.43 Bank 32 30.60 32.09 Loans 13 18.60 18.67 18.52 F. R. Bank 32 15.05 15.63 16.69 De O U m t . h a S n e . r d G s d e o e c v p u t o r . i s t s i i t e e s c s u a r d i j t u ie s s te d e 1 1 1 3 3 3 2 1 3 7 7 . . . 7 1 3 3 3 9 2 1 3 7 7 . . . 7 1 6 6 9 2 2 1 3 7 8 . . . 7 7 1 4 4 7 Bo N n o d o n s n — b ly a T ) n , k o ta ( c l u o n m o r u e m t s s e t t r r a i c c n i t a d e l i d n g i b s a su n e k s , 32 80.63 78.99 78.98 Time deposits 13 11.73 11.86 11.94 andF. R. Bank 32 47.68 46.16 Balances due to banks 13 5.11 5.16 5.45 Commercial bank and F. R. Balances due from banks 13 1.73 1.82 1.83 Bank 32 36.53 35.41 Reserves 13 7.28 7.40 7.44 F. R. Bank 32 4.09 4.11 4.11 Country banks: By earliest callable or due date: Loans and investments, total 13 40.64 40.52 40.65 Within 1 year-Total outstanding 33 53.65 60.86 61.22 Loans 13 15.81 15.89 15.82 Commercial bank and F. R. U. S. Govt. securities 13 20.55 20.31 20.47 Bank 33 29.19 35.56 Other securities 13 4.29 4.32 4.36 F. R. Bank 33 13.06 13.96 14.06 Demand deposits adjusted • 13 29.67 29.60 30.08 1-5 years—Total outstanding. 33 38.35 31.02 32.02 Time deposits 13 14.99 cl5.O7 15.18 Commercial bank and F. R. Balances due from banks 13 3.50 3.51 3.78 Bank 33 30.25 24.73 Reserves 13 5.37 5.38 5.4 F. R. Bank 33 4.44 3.88 4.88 5-10 years—Total outstanding 33 15.96 '16.01 16.01 LENDING INSTITUTIONS OTHER THAN Nonbank (unrestricted issues COMMERCIAL BANKS only), commercial bank, Mutual savings banks:' and F. R. Bank 33 8.53 C8.58 Total assets 20 '22.72 22.83 22.9 Commercial Bank and F. R. U. S. Govt. securities 20 '10.30 10.23 10.1 Bank 33 7.27 7.31 Real estate mortgages 20 '8.74 8.90 9 04 F. R. Bank 33 1.03 1.03 1.03 Other securities 20 '2.44 2.48 2.51 Over 10 years^-Total outstand- Other assets 20 1.24 1.23 1.20 ing 33 30.08 "30.02 30.02 Life insurance companies: Nonbank (unrestricted issues Total assets 20 65.50 65.73 only), commercial bank, Business securities 20 25.49 25.81 and F. R. Bank 33 4.57 C4.62 Real estate mortgages 20 17.75 18.05 Commercial bank and F. R. U. S. Govt. securities 20 12.11 11.79 Bank 33 4.04 4.18 Other assets 20 10.14 10.08 F. R. Bank 33 1.27 1.40 1.40 For footnotes see p. 1197. 1194 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CURRENT STATISTICS FOR FEDERAL RESERVE CHART BOOK—Continued Chart 1951 Chart 1951 book book page May June July page May June July* In millions of dollars In unit indicated MONTHLY FIGURES—Cont. MONTHLY FIGURES—Cont. PRODUCTION AND DISTRIBUTION GOVERNMENT FINANCE—Cont. Industrial production:B Sales and redemptions of U. S. savings Total (1935-39 = 100) 56, 57 223 222 P213 securities: Points in total index: Savings notes: Durable manufactures 56 104.6 104.1 P99.9 Sales.... 34 286 2,541 524 Nondurable manufactures.... 56 92.8 92.3 P88.8 Redemptions 34 238 2,882 418 Minerals 56 25.1 25.2 P23.8 Net sales or redemptions 34 +48 -341 +106 Indexes (1935-39=100): Savings bonds: Durable manufactures 57 276 275 P263 All series: Nondurable manufactures. ... 57 198 197 P190 " Sales 34 296 290 311 Minerals 57 165 166 P157 Redemptions 34 432 439 444 Selected durable manufactures Net sales or redemptions 34 -136 -149 -133 (1935-39 = 100): Series A-E: Nonferrous metals 58 224 221 P220 Sales 35 247 244 258 Steel 58 301 296 293 Redemptions 35 P346 P329 P319 Cement 58 231 235 226 Net sales or redemptions 35 -99 -85 P-61 Lumber 58 158 147 131 Series F and G: Transportation equipment 58 r309 307 P283 Sales 35 49 46 53 Machinery 58 r337 339 P327 Redemptions 35 P86 P109 P124 Selected nondurable manufactures Net sales or redemptions 35 -37 '-63 P-71 (1935-39=100): Apparel wool consumption 59 163 153 Cotton consumption 59 164 157 123 In billions of dollars Paperboard 59 256 247 217 Newsprint consumption 59 166 163 166 Cash income and outgo: Fuel oil 59 210 215 P215 Cash income 36 4.15 7.37 2.85 Gasoline 59 207 '212 P211 C Ex a c sh es s o u o t f g o c ash income or outgo.... 3 3 6 6 -1 5 . . 0 1 1 5 +2 5 . . 1 22 4 -1 4 . . 9 8 9 4 R In a d y u o s n t rial chemicals 5 5 9 9 •• 3 5 7 3 8 9 ' r 5 38 4 5 8 P 3 5 9 58 1 Sales, inventories, and new orders: Sales (bill, dollars) :* CONSUMER FINANCE Manufacturing, total 60 23.8 22.8 P21.6 Durable 60 11.1 10.7 P9.7 Consumer credit, total • 45 19.21 P19.26 P19.13 Nondurable 60 12.8 12.1 Pll.9 Single-payment loans 45 1.40 v\ .40 Pl.40 Wholesale, total 61 9.6 9.6 P9.1 Charge accounts 45 3.79 P3.80 P3.74 Durable 61 2.5 2.4 P2.3 Service credit 45 1.10 PI.10 Pl.09 Nondurable 61 7.1 7.2 P6.8 Instalment credit, total 45, 46 12.92 P12.96 P12.90 Retail, total 61 12.1 11.9 Pll.9 Instalment loans 46 5.67 P5.72 P5.73 Durable 61 4.0 3.9 P3.7 Instalment sale credit, total 46 7.25 P7.23 P7.17 Nondurable 61 8.1 8.0 P8.1 Automobile 46 3.98 P4.04 P4.06 Inventories (bill, dollars): * Other 46 3.27 P3.19 P3.11 Manufacturing, total 60 38.9 40.0 P40.4 Durable 60 18.3 19.0 P19.5 PERSONAL INCOME Nondurable 60 20.6 21.0 P20.9 Trade: Personal income (annual rates): * Total 61 '30.9 30.6 P30.3 Total 52 249.8 251.0 251.6 Durable 61 12.4 12.4 P12.3 P W ro ag p e r ie a t n o d r s s ' a i l n a c ry o m re e c , e d i i p v ts id ends, and 52 165.1 166.4 166.1 Wh N o o le n s d a u le ra ble 6 6 1 1 1 1 2 8. . 5 0 1 11 8 . . 9 1 P P 1 l 8 l. . 7 0 interest 52 68.2 68.0 69. Retail 61 19.0 18.7 P18.6 All other 52 16.5 16.6 16.4 New orders (bill, dollars): Manufacturing, total 60 23.3 23.2 P2O.7 Durable 60 11.8 12.0 PIO.O Nondurable 60 '11.5 11.2 P10.8 In unit indicated Construction contracts (3 mo. moving EMPLOYMENT avg., mill, dollars):s Total 62 1,480 1,534 1,241 Labor force (mill, persons): • Residential 62 508 532 548 Civilian 53 62.8 63.8 64.4 Other 62 973 1,002 693 Unemployment 53 1.6 2.0 1.9 Value of construction activity (mill, Employment 53 61.2 61.8 62.5 dollars): Nonagricultural 53 53.8 53.8 54.6 Total • 63 2,556 2,716 P2.77O Employment in nonagricultural estab- Nonresidential:e lishments (mill, persons): • • Public 63 '771 820 P847 Total 54 -•46.51 46.62 P46.56 Private 63 r858 907 P934 Manufacturing and mining 54 17.02 17.02 P16.93 Residential:« Trade 54 9.81 9.85 P9.83 Public 63 46 50 P52 Construction 54 2.57 2.56 P2.55 Private 63 r881 939 P937 Transportation and utilities 54 4.14 4.13 P4.12 Residential construction: Finance and service 54 6.63 6.66 P6.66 Contracts awarded (mill, dollars): Government 54 6.35 6.40 P6.47 Total 64 561 491 517 Average hours and earnings of factory 1- and 2-family dwellings 64 409 333 360 employees: Other 64 151 159 157 Hours worked (per week): Dwellings started (thous. units)... 65 101 130 86 All 55 40.7 40.8 P40.4 Nonfarm mortgage lending Durable 55 41.7 41.8 P41.0 (mill, dollars): Nondurable 55 39.3 39.4 P39.5 Mortgages under $20,000 65 1,444 1,422 1,370 Hourly earnings (dollars): FHA insured home loans 65 168 148 148 All 55 1.586 1.601 Pl.598 GI home loans 65 292 264 319 Durable 55 1.664 1.684 Pl.681 Freight carloadings:6 Nondurable 55 1.475 1.484 PI.488 Total (1935-39 =100) 71 133 131 125 Weekly earnings (dollars): Groups (points in total index): All 55 64.55 65.32 P64.56 Miscellaneous 71 80.9 79.0 77.7 Durable 55 69.39 70.39 P68.92 Coal 71 23.5 25.5 20.7 Nondurable 55 •"57.97 58.47 P58.78 All other 71 28.1 '26.8 26.3 For footnotes see p. 1197 . SEPTEMBER 1951 1195 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CURRENT STATISTICS FOR FEDERAL RESERVE CHART BOOK— Continued Chart 1951 Chart 1950 1951 book book page May June July page Oct.- Jan.- Apr.- Dec. Mar. June In unit indicated Per cent per annum QUARTERLY FIGURES—Cont. MONTHLY FIGURES—Cont. MONEY RATES, ETC. PRODUCTION AND DISTRIBUTION—Cont. Bank rates on loans to business: Department stores: All loans: Indexes (1935-39 =100): 6 19 cities 24 2.84 3.02 3.07 Sales 72 301 '302 309 New York City 24 2.51 2.74 2.78 Stocks 72 365 353 353 7 Northern and Eastern cities... 24 2.87 3.02 3.04 296 stores: 11 Southern and Western cities.. 24 3.28 3.42 3.52 Sales (mill, dollars) 73 '339 '326 257 S O R t u a o t t c i s k o t s s a n t ( d o m i n i s l a g l, l e o d s r o d ( l e l m a r r s o s n ) ( t m h i s l ' l , s d u o p l p la ly rs ) ) : 7 7 3 3 , '2 1 9 9 5 3 '1, ' 1 3 1 8 2 6 1,0 4 6 3 5 3 Lo N 1 a 9 n e s w c i o t Y i f e o s $ r 1 k ,0 C 00 it - y $ 10,000: 2 2 4 4 4 4 . .1 6 7 0 4 4. . 2 6 0 8 k4 4 . . 3 7 7 3 Total commitments 73 4.4 4.6 5.8 7 Northern and Eastern cities.. . 24 4.64 4.74 4.68 Stocks 73 3.5 3.4 4.1 11 Southern and Western cities.. 24 4.78 4.87 4.90 Loans of $10,000-$ 100,000: PRICES 19 cities 24 3.73 3.88 3.93 New York City 24 3.44 3.68 3.66 Co F A n o l s l o u d i m t e e m rs s ' prices (1935-39=100): 7 7 4 4 2 1 2 85 7 . . 4 4 2 1 2 85 6 . . 2 9 2 1 2 8 7 5 . . 7 5 7 1 1 N S o o r u th th e e rn rn a a n n d d E W as e t s e t r e n r n c i c t i i t e ie s s .. . . '. 2 2 4 4 3 3. . 9 7 1 0 3 4 . . 8 0 6 1 4 3 . .9 1 0 0 Apparel 74 204.0 204.0 203.3 Loans of $100,000-$200,000: Rent 74 135.4 135.7 136.2 19 cities 24 3.10 3.27 3.32 Fuel, electricity, and refrigeration. 74 143.6 143.6 144.0 New York City 24 2.80 3.06 3.06 Miscellaneous 74 165.0 164.8 165.0 7 Northern and Eastern cities... 24 3.18 3.23 3.28 Wholesale prices (1926=100): 11 Southern and Western cities.. 24 3.21 3.41 3.52 Total 75 182.9 '181 179.5 F F o a o rm d products 7 7 5 5 '1 1 8 9 7 9. . 6 3 1 1 8 9 6 8. . 6 3 1 1 8 9 6 4 . . 0 0 Lo 1 a 9 n s c i o ti f e s $ 200,000 and over: 24 2.57 2.76 2.81 Other commodities 75 '171.6 '170.6 168.7 New York City 24 2.35 2.59 2.64 Textile products 76 '182.1 '178.2 173.5 7 Northern and Eastern cities... 24 2.65 2.81 2.83 Hides and leather products 76 232.6 230.6 221.9 11 Southern and Western cities.. 24 2.90 3.06 3.14 F M C B u u h e e i e t l l m a d l a i s i n n c g a a d l n s m l d ig a a m n h te t d e r in i t a a a g l l l l s i m e p d r a o t p d e u r r o c i d t a s u ls c . t . s . . . . . . 7 7 7 7 7 7 6 7 '1 2 1 1 4 2 8 3 5 8 7 7 . . . . 8 5 7 8 '1 2 1 1 4 2 8 3 8 2 5 7 . . . . 2 8 6 3 2 1 1 1 2 3 8 3 7 3 8 9 . . . . 8 0 4 Stock E a y s r i t n e o l i c d n k s g s : s /price ratio, common 26 4.09 '11.42 Miscellaneous 76 141.7 141.7 138. In billions of dollars AGRICULTURE GOVERNMENT FINANCE Prices paid and received by farmers Budget receipts and expenditures of (1910-14=100): U. S. Treasury: Ca P R s a h e i c d f e a , i r v e m e t d c i ncome (mill, dollars): 8 8 0 0 2 30 8 5 3 ' 3 2 0 8 1 2 2 2 8 9 2 4 Ex V N pe e a n t t e i d o r i a n t n u a s r l e d s A e , f d t e o m n t s a i e n l istration 37, 3 3 3 7 8 8 1 4 1 0 . . . 3 2 0 6 9 1 1 5 1 1 . . . 4 0 3 0 8 3 P 1 1 7 4 . . . O 2 49 3 5 T L C o i r v o t e a p s l s t ock and products 8 8 8 1 1 1 2 1 , , 1 6 4 5 8 3 3 6 4 2 1 , , 1 6 5 0 3 7 7 7 0 P P P 2 l l . . , 0 5 6 6 5 28 1 6 A I In n l t t l e e o r r e n th s a t e t i r o o n n a d l e a b i t d 3 3 3 8 8 8 1 1 . . . 3 9 9 4 9 3 2 1 1 . . . 0 0 2 0 1 5 P P 1 2 i. . . 9 6 4 6 9 7 Receipts: INTERNATIONAL TRADE AND FINANCE N In e d t i v re id c u e a ip l ts in come taxes 3 3 7 8 9 3 . . 1 6 2 8 1 9 6 . . 5 8 7 2 1 6 2 . . 1 8 3 6 Exports and imports (mill, dollars): Corporate income, etc 38 2.52 4.57 4.84 E I E m x x c p p e o o s r r s t t s s o f exports or imports 8 8 8 2 2 2 P P \ l , . P 0 3 1 3 5 3 8 3 5 PI P P .2 9 3 9 2 6 4 9 4 Pl. P P 1 8 2 8 9 9 3 3 6 A M Ta l i l x s c o r e t e h ll f e a u r n n e d o s u s ( d i e n d te u r c n t) a l revenue. . . 3 3 3 8 8 8 2. . . 3 7 1 2 2 3 2. . . 4 8 6 9 8 9 2 1 . . . 1 8 1 6 4 1 Short-term liabilities to and claims on foreigners reported by banks (bill, BUSINESS FINANCE dollars): To O ta f l f I i n c l i v i a a e l b s i t l e it d i e i s n U. S. Treasury bills 8 8 3 3 P P3 6 . . 2 7 8 6 P P 7 3 . A 0 5 1 Cu C rr u c e r o n re r t p n o t r a a a s s t s s i e o e t t n s s s , :e t a o n ta d l liabilities of 39 150.5 155.3 Fo C re l i a P g i r n m i v s e a a x o t n e c n d h a f c o n e r g r e e t i i g f r n i a c e a t r e t s e s s : 8 8 8 3 3 3 P P3 P l A . .9 0 9 2 1 P P P I 3 . . . 1 9 5 7 4 6 U R C In e a . v c s S e h e n . i v t G o a r b o i l v e e s t s . securities 3 3 3 3 9 9 9 9 2 5 5 1 6 1 0 9 . . . . 9 9 0 9 2 2 5 5 6 5 0 1 . . . . 2 7 4 0 See p. 1217 of this BULLETIN 84,85 Current liabilities, total 39 74.7 77.5 Notes and accounts payable 39 44.5 45.7 Federal income tax liabilities 39 15.5 16.5 Net working capital 39 75.8 77.8 1950 1951 In unit indicated Oct.- Jan.- Apr.- QUARTERLY FIGURES Dec. Mar. June LENDING C O IN M S M TI E T R U C T IA IO L N B S A O N T K H S ER THAN In billions of dollars Co T rp o o ta r l a t ( e b i s l e l, c u d r o i l t l y a r i s s ) s e u es: 40 1 .48 1 73 2.36 New money, total (bill, dollars)«. . 40 .96 1.46 1.99 Assets of savings institutions: Type of security (bill, dollars): Savings and loan associations: • Bonds 40 .70 1.24 1.48 Total assets 20 16.93 17.20 17.98 Preferred stock 40 .13 .05 .14 Real estate mortgages 20 13.81 14.10 14.66 Common stock 40 .13 .17 .36 U. S. Govt. securities 20 1.49 1.56 1.57 Use of proceeds (mill, dollars): Other assets 20 1.63 1.54 1.76 Plant and equipment: Loans and loan guarantees and in- All issuers 41 717 1,167 1,422 surance of Federal agencies: Public utility 41 470 873 682 Total* 21 35 27 36 61 Railroad 41 72 76 59 Loans 21 12.87 13 14 Industrial 41 174 217 671 Foreign 21 6.01 6.06 Working capital: Domestic: All issuers 41 239 293 565 Agriculture 21 3 59 3 64 Public utility 41 5 2 30 Home owners 21 2.74 2.91 Railroad 41 1 5 Other 21 .71 .72 Industrial 41 178 212 "405 Loan guarantees and insurance:* Bonds (bill, dollars): • Nonfarm mortgages 21 21.65 22.70 Public 40 .32 91 .55 Other 21 .76 .76 Private 40 .82 .55 1.25 For footnotes, see p. 1197. 1196 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CURRENT STATISTICS FOR FEDERAL RESERVE CHART BOOK—Continued 1950 1951 1950 1951 Chart Chart book book page Oct.- Jan.- Apr.- page Oct.- Jan.- Apr.- Dec. Mar. June Dec. Mar. June In unit indicated Annual rates QUARTERLY FIGURES—Gont. QUARTERLY FIGURES—Cont. in billions of dollars BUSINESS FINANCE Coilt. GROSS NATIONAL PRODUCT, ETC. e Corporate profits, taxes, and dividends ross national product 5 48 303.7 318.5 325.6 (annual rates, bill, dollars):e 5 Govt. purchases of goods and services 48 47.8 52.9 60.0 Profits before taxes 42 50.3 51.8 6 48.5 Personal consumption expenditures 48 198.4 208.2 201.7 Profits after taxes (dividends and Durable goods 50 29.4 31.5 25.9 undistributed profits) 42 27.8 23.3 622.0 Nondurable goods 50 104.9 111.5 109.5 Undistributed profits 42 16.7 14.5 612.5 Services 50 64.0 65.2 66.2 Private domestic and foreign invest- Corporate profits after taxes (quar- ment 48 57.5 57.3 64.0 terly totals) : Gross private domestic investment: All corporations (bill, dollars)«. ... 43 7.0 5.5 Producers' durable equipment. 49 25.0 26.5 26.7 Large corporations, total (bill, dol- New construction 49 23.3 23.9 22.3 lars) 43 1.6 1.4 1.4 Change in business inventories. 49 11.8 9.3 14.4 Manufacturing (mill, dollars): Net foreign investment 49 -2.7 -2.3 .5 Durable 43 576 530 547 Personal income, consumption, and Nondurable 43 382 '377 375 saving: 5 Electric power and telephone Personal income 51 238.3 244.1 250.0 (mill, dollars) 43 330 347 31 Disposable income 51 215.2 217.5 222.8 Railroads (mill, dollars) 43 318 103 144 Consumption expenditures 51 198.4 208.2 201.7 Net personal saving 51 16. 9.3 21.1 Plant and equipment expenditures (bill, dollars): • * 1949 1950 All business 44 5.8 5.2 '6.3 Manufacturing and mining; railroads and utilities 44 4.3 3.7 '4.6 Dec. June Dec. Manufacturing and mining 44 3.0 2.6 ^3.3 31 30 30 SEMIANNUAL FIGURES CONSUMER FINANCE In billions of dollars INSURED COMMERCIAL BANKS In billions of dollars Loans: Individual savings: • Commercial 11 16.94 16.81 21.78 Agricultural 11 2.96 2.82 2.82 Gross savings 47 + 14.3 +9.7 Real estate 11 11.41 12.27 13.39 Liquid savings 47 +2.6 +0.1 Consumer 11 6.00 6.89 7.63 Cash 47 +3.6 -1.9 For purchasing securities: U. S. Govt. securities 47 -0.7 +0.2 To brokers and dealers 11 1.75 1.86 1.79 Other securities 47 +0.0 +0.6 To others 11 0.86 0.91 1.04 Insurance 47 +2.3 +2.0 State and local government securities. 11 6.40 7.24 7.93 Debt liquidation 47 -2.6 -0.8 Other securities 11 3.57 3.72 4.18 • Estimated. P Preliminary. ' Revised. c Corrected. 1 For charts on pp. 22, 28, and 30, 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 Deficiency of less than 5 million dollars. 4 Less than 5 million dollars. 6 Adjusted for seasonal variation. 6 Figures, except for cash dividends, are estimates of Council of Economic Advisers, based on preliminary data. 7 Expenditures anticipated by business during the third and fourth quarters of 1951 are (in billions of dollars): third quarter—all business, 6.8; manufacturing and mining, railroads and utilities, 5.3; manufacturing and mining, 3.9; fourth quarter—6.6, 5.3, and 3.8, respectively. * 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. SEPTEMBER 1951 1197 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST CROP REPORT, BY FEDERAL RESERVE DISTRICTS BASED ON ESTIMATES OF THE DEPARTMENT OF AGRICULTURE, BY STATES, AS OF AUGUST 1, 1951 [In thousands of units] Cotton Corn Winter wheat Spring wheat Federal Reserve district Production Estimate Production Estimate Production Estimate Production Estimate 1950 Aug. 1, 1951 1950 Aug. 1, 1951 1950 Aug. 1, 1951 1950 Aug. 1, 1951 Bales Bales Bushels Bushels Bushels Bushels Bushels Bushels Boston . . ... 7,628 7,934 New York 35,371 36,946 13,594 13,430 115 110 Philadelphia 55,661 59,802 17,129 17,381 Cleveland 219,158 248,546 51,416 39,054 Richmond 590 1,489 197,503 183,294 22,669 29,841 Atlanta 1,576 2,730 218,592 207,818 5,103 5,710 Chicago 1,115,665 1,257,406 69,175 65,148 1,332 1,057 St. Louis 12,691 23,823 426,131 408,014 48,517 50,685 10 7 Minneapolis 340,126 382,558 30,703 35,663 234,616 293,546 Kansas City . . 201 564 429,739 352,351 354,215 268,040 3,678 4,334 Dallas 3,549 6,172 77,657 55,597 23,032 17,681 105 110 San Francisco 1,405 2,488 7,778 6,726 115,113 108,105 36,233 48,384 Total 10,012 17,266 3,131,009 3,206,992 750,666 650,738 276,089 347,548 Oats Tame hay Tobacco White potatoes Federal Reserve district Production Estimate Production Estimate Production Estimate Production Estimate 1950 Aug. 1, 1951 1950 Aug. 1, 1951 1950 Aug. 1, 1951 1950 Aug. 1, 1951 Bushels Bushels Tons Tons Pounds Pounds Bushels Bushels Boston 6,742 8,014 3,664 3,998 40,813 36,136 70,733 55,526 New York 35,369 36,936 6,471 6,420 974 934 40,947 33,517 Philadelphia 18,957 20,671 2,653 2,751 61,365 58,752 21,901 18,422 Cleveland 53,976 64,001 6,243 6,502 125,873 146,006 13,413 11,451 Richmond 39,167 41,757 4,940 5,028 1,235,345 1,349,387 24,987 20,314 Atlanta 29,152 24,761 3,640 3,288 228,980 275,116 14,408 14,479 Chicago . . . . 630,672 554,874 20,281 23,347 32,147 25,675 32,505 25,921 St. Louis 73,682 49,691 9,925 9,395 300,743 351,775 7,230 5,561 [Minneapolis 389,199 445,739 10,905 14,153 2,359 1,799 50,112 39,448 Kansas City 122,848 108,855 10,247 10,785 3,851 3,700 34,973 26,269 Dallas 29,537 10,301 1,750 1,547 3,255 2,749 San Francisco 35,833 27,723 13,591 12,594 125,036 97,529 Total 1,465,134 1,393,323 94,310 99,808 2,032,450 2,249,280 439,500 351,186 1 Includes 7,000 bales grown in miscellaneous territory. 2 Includes 12,000 bales grown in miscellaneous territory. NOTE.—1950 figures for cotton are as revised in August 1951. 1198 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CHANGES IN NUMBER OF BANKING OFFICES IN THE UNITED STATES [Figures for last date shown are preliminary] Commercial and stock savings banks and nondeposit trust companies Mutual savings banks All Member banks Nonmember banks banks Total Total 1 ti N on a a - l m S e t m at b e er1 Total su I r n e - d 2 in N su o r n e - d 2 sur I e n d - * 2 in N su o r n e - d Banks (head offices) Dec. 31, 1933 15,029 14,450 6,011 5,154 857 8,439 8,4-9 579 Dec. 31, 1934 16,063 15,484 6,442 5,462 980 9,042 7,699 1,343 68 511 Dec. 31, 1941 14,825 14,277 6,619 5,117 1,502 7,661 6,810 851 52 496 Dec. 31, 1945 14,553 14,011 6,884 5,017 L ,867 7,130 6,416 714 192 350 Dec. 31 1946 14,585 14,044 6,900 5,007 1,893 7,147 6,457 690 191 350 Dec. 31, 1947 3 . . . 14,714 14,181 6,923 5,005 1,918 7,261 6,478 783 194 339 Dec. 31, 1948 14,703 14,171 6,918 4,991 1,927 7,256 6,498 758 193 339 Dec. 31 1949 14,687 14,156 6,892 4,975 1,917 7,267 6,540 727 192 339 Dec. 31, 1950 14,650 14,121 6,873 4,958 .915 7,251 6,562 689 194 335 June 30 1951 14,636 14,107 6,859 4,946 1,913 7,251 6,581 670 201 328 Branches and additional offices Dec. 31 1933 2,911 2,786 2,081 1,121 960 705 705 125 Dec. 31, 1934 .... 3,133 3,007 2,224 1,243 981 783 4 783 4 126 Dec. 31 1941 3,699 3,564 2,580 1,565 1 m =; 984 932 52 32 103 Dec. 31, 1945 4,090 3,947 2,909 1,811 1,098 1,038 981 57 101 42 Dec. 31, 1946 . .. 4,138 3,981 2,913 1,781 1,132 1,068 1,006 62 115 42 Dec. 31 1947 s 4,332 4,161 3,051 1,870 1,181 1,110 1,043 67 124 47 Dec. 31, 1948 .... 4,531 4,349 3,197 1,965 1,232 1,152 1,084 68 132 50 Dec. 31 1949 4,778 4,579 3,387 2,085 3n? 1,192 1,139 53 141 58 Dec. 31, 1950 .... 5,056 4,843 3,589 2,230 1,359 1,254 1,202 52 152 61 June 30, 1951 5,204 4,983 3,703 2,291 1,412 1,280 1,228 52 158 63 Changes, Jan. 1-June 30, 1951 Banks New Banks 5 .... +32 +31 +4 +4 +27 +23 +4 + 1 Suspensions . . -1 1 Consolidations and absorptions: Banks converted into branches -31 -30 -15 -13 -2 -15 -12 -1 Other -11 -11 -3 -2 -1 -8 -7 -1 Voluntary liquidations 6 -5 -5 -1 -1 -4 -2 _2 Other changes 7 +2 +2 +2 +2 Interclass changes: Conversions— National into State ... -1 -1 + 1 +1 Fede S ra ta l t R e e i s n e t r o v e n a m tio em na b l ership: 8 +1 + 1 Admissions of State banks +5 +5 -5 -4 -1 Withdrawals of State banks —4 -4 +4 +4 Federal deposit insurance: 9 Admissions of State banks +17 -17 +6 -6 Net increase or decrease -14 -14 -14 -12 -2 +19 -19 +7 -7 Number of banks, June 30, 1951 14,636 14,107 6,859 4,946 1,913 7,251 6,581 670 201 328 Branches and additional offices 10 De novo branches +102 +95 +77 +50 +27 +18 + 18 +4 +3 D Ba is n c k o s n t c i o n n u v ed erted into branches +31 + - 3 2 0 +26 +13 +13 j +4 +4 +1 Other changes n +2 +2 +2 +1 + 1 Interclass branch changes: National to State member -17 + 17 National to Nonmember -3 -3 +3 +3 State member to national +5 -5 Noninsured to insured +2 -2 Net increase or decrease +133 +125 +100 +48 +52 +25 +25 +6 +2 Number of branches and additional offices June 30, 1951... 5,067 4,846 3,579 2,184 1,395 1,267 1,215 52 158 63 Banking facilities 12 Established +15 +15 +15 +14 +1 Inter-class changes -1 +1 +1 Net increase +15 +15 +14 + 13 +1 + 1 Number of banking facilities, June 30, 1951 . . 137 137 124 107 17 13 13 I The State member bank figures and the insured mutual savings bank figures both include three member mutual savings banks that became members of the Federal Reserve System during 1941. These banks are not included in the total for "commercial banks" and are included only once in "all banks." 2 Federal deposit insurance did not become operative until Jan. 1, 1934. 3 As of June 30, 1947, the series was revised to conform (except that it excludes possessions) with the number of banks in the revised all bank series announced in November 1947 by the Federal bank supervisory authorities. The revision resulted in a net addition of 115 banks and_9 branches. ^ 4 Separate figures not available for branches of insured and noninsured banks. 5 Exclusive of new banks organized to succeed operating banks. 6 Exclusive of liquidations incident to succession, conversion, and absorption of banks. 7 Two institutions not previously engaged in deposit banking, resumed deposit business. 8 Exclusive of conversions of national banks into State bank members, or vice versa. Such changes do not affect Federal Reserve membership; they are included under "conversions." 9 Exclusive of insured nonmember banks converted into national banks or admitted to Federal Reserve membership, or vice versa. Such changes do not affect Federal Deposit Insurance Corporation membership; they are included in the appropriate groups under "interclass bank changes." 10 Covers all branches and other additional offices (excluding banking facilities) at which deposits are received, checks paid, or money lent. II Two de novo branches opened prior to 1951 but not previously reported. 12 Banking facilities are provided through arrangements made by the Treasury Department with banks designated as depositaries and financia agents of the Government at military and other Government establishments. Three of these banking facilities are, in each case, operated by two national banks, each bank having separate teller windows;-each of these facilities is counted as one office only. These figures do not include branches that have also been designated by the Treasury Department as banking facilities. Back figures.—See Banking and Monetary Statistics, Tables 1 and 14, pp. 16-17 and 52-53, and descriptive text, pp. 13-14. 1199 SEPTEMBER 1951 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTERNATIONAL FINANCIAL STATISTICS PAGE International capital transactions of the United States.. 1202-1207 Gold production. . 1207 Reported gold reserves of central banks and governments. 1208 Gold movements; gold stock of the United States. 1209 International Monetary Fund and Bank. . 1210 Central Banks.. 1210-1214 Money rates in foreign countries. 1215 Commercial banks 1216 Foreign exchange rates. 1217 Price movements: Wholesale prices.. 1218 Retail food prices and cost of living 1219 Security prices.. 1219 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. SEPTEMBER 1951 1201 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTERNATIONAL CAPITAL TRANSACTIONS OF THE UNITED STATES TABLE 1.—NET CAPITAL MOVEMENT TO UNITED STATES SINCE JANUARY 2, 1935, BY TYPES [Net movement from United States, (-). In millions of dollars] Increase in banking funds in U. S.1 Decrease Domestic Foreign From Jan. 2, 1935, Total b in a n U k . i m n g S. s I e n c f u lo r w iti e o s f : se R cu et r u it r i n es: b I r n o fl k o e w ra g in e through— Total o F f o f r ic e i i a g l n 2 F o o t r h e e ig r n In ti t o e n rn a a l - ab fu ro n a d d s 1 f f o u r n e d ig s n 3 o f f u n U d . s S 3 . balances 1945—Dec. 31 8,802.8 6,144.5 3,469.0 2,675.5 742.7 798.7 972.8 144.1 1946—Dec. 31 8,009.5 5,726.1 2,333.6 2,938.7 453.8 427.2 464.5 1,237.9 153.7 1947—Dec. 31 8,343.7 6,362.3 1,121.8 2,998.5 2,242.0 186.5 375.5 1,276.9 142.4 1948—Dec. 31 8,569.1 6,963.9 2,126.0 2,993.6 1,844.3 116.8 183.3 1,182.1 123.1 1949—Dec. 31 8,763.5 6,863.9 2,197.8 3,028.2 1,637.8 307.6 258.5 1,209.9 123.7 1950—July 31 9,896.4 7,455.6 2,592.5 3,236.5 1,626.6 462.3 631.8 1,226.0 120.7 Aug. 31 10,128.9 7,613.2 2,522.3 3,478.5 1,612.4 445.6 774.7 1,172.7 122.7 Sept. 30 10,488.0 8,182.9 3,012.6 3,543.9 1,626.4 383.4 800.6 999.2 121.9 Oct. 31 10,733.5 8,421.1 3,257.7 3,516.2 1,647.2 292.7 833.0 1,062.5 124.3 Nov. 30 10,710.2 8,149.4 2,899.2 3,536.7 1,713.5 282.0 1,080.9 1,066.4 131.6 Dec. 31 10,521.9 7,892.1 2,715.6 3,474.3 1,702.3 230.6 1,202.9 1,064.5 131.7 1951—Jan. 31 10,467.6 7,723.3 2,675.9 3,431.9 1,615.5 269.0 1,280.7 1,064.2 130.5 Feb. 28 10,407.9 7,731.6 2,704.4 3,434.9 1,592.3 216.1 1,274.0 1,052.9 133.2 Mar. 31 10,353.9 7,695.9 2,646.8 3,449.0 1,600.1 214.9 1,305.5 1,006.7 130.9 Apr. 30 10,387.3 7,649.2 2,582.5 3,461.1 1,605.6 237.9 1,399.4 974.8 126.1 May 31 P 10,250.1 7,591.6 2,566.3 3,463.8 1,561.4 210.3 1,416.9 909.8 121.6 June 30P 10,252.8 7,906.2 2,740.0 3,537.9 1,628.4 191.6 1,146.2 876.2 132.7 TABLE 2.—SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRIES * [Amounts outstanding, in millions of dollars] Total foreign In- countries Date t t i e i n o r s n n t a i a - - l Official U K d n o i i n m t g ed - France N la e e n r t d - h s - S la w e n r i - d tz 4 - 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 Official2 private 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 7181.8 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 1,104.81,316.4232.8 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 1,216.61,057.9193.7 1 1 9 94 4 9 8 — — D £) eecc#. 3 3 1 1 . . .. .. 1 1, , 8 6 6 5 4 7 .8 3 5 5 , , 8 9 5 60 3 . . 2 7 2 2 , , 8 9 3 0 6 8 . . 3 1 5 5 4 7 6 4 . . 3 4 1 1 9 7 2 1 .6 8 1 1 2 7 2 0 .5 8 5 5 3 7 8 6 .9 9 3 3 3 0 3 3 . . 5 6 7 7 3 1 8 7 . . 1 0 2 2 , , 4 5 7 1 2 3 . . 4 9 8 7 6 75 9 . . 2 1 1 1, , 4 2 3 8 6 7 . . 7 01,1 9 5 6 1 1 . . 8 0 1 1 6 7 7 9 . . 4 5 1950—July 31... 1,646.5 6,563.2 3,302.8 911.8 193.1 248.4 593.9 275.8 801.9 3,024.9 796.3 1,455.01,093.4193.5 Aug. 31 1,632 4 6,734.9 3,232 6 3 758 1 266 0 257 2 603 4 283.8 816 2 2,984 7 927 5 1,469 61,146 8206.4 Sept. 30... 1,646.4 » 7,290.7 3,722.9 > 703.4248.4 255.5 600.0 304.0 866.2 »2,977.5 1,332.5 1,544.01,224.7211.9 Oct. 31... 1,667.1 5 7,508.1 3,968.0 »819.8 289.6 275.0 572.4 309.2 859.8 53,125.8 1,227.8 1,569.61,362.8222.1 Nov. 30... 1,733.4 5 7,170.1 3,609.5 > 723.3247.2 281.9 569.9 303.1 811.3 5 2,936.7 1,054.9 1,524.81,404.0249.7 Dec. 31... 1,722.2 5 6,924.0 3,425.9 5 660.7 260.7 193.6 553.0 314.7 796.5 52,779.1 899.0 1,612.91,378.6254.5 1951—Jan. 31... 1,635.4 5 6,842.0 3,386.2 5 637.7 273.7 203.5 513.2 308.6 812.6 ^ 2,749.5 887.1 1,585.31,369.7250.3 Feb. 28... 1,612.2 » 6,873.5 3,414.7 5 629.1 258.0 209.1 504.2 324.4 807.9 52,732.8 884.5 1,596.11,401.1259.0 Mar. 31... 1,620.0 5 6,830.0 3,357.1 5 646.1 232.5 198.6 505.0 306.3 810.6 5 2,699.2 824.6 1,646.31,411.0248.8 Apr. 30... 1,625.6 5 6,777.8 3,292.8 5 673.6 193.0 131.4 502.5 299.1 822.9 5 2,622.5 811.6 1,705.81,386.0251.9 May 31 P. . 1,581.4 5 6,764.3 3,276.6 5 629.1 185.2 133.6 496.8 289.9 851.9 52,586.5 835.6 1,712.71,374.3255.2 June 30P.. 1,648.3 5 7,012.0 3,450.3 5 618.0 246.3 134.8 510.1 276.0 931.5 s 2,716.7 971.9 1,672.91,397.3253.2 P Preliminary. 1 Certain of the movement figures in Table 1 have been adjusted to take account of changes in the reporting practice of banks (see BULLETIN for August 1951, p. 878). Reported figures from banks, however, did not permit similar adjustments in Tables 2 and 3, representing outstanding amounts. Therefore changes in outstanding amounts as may be derived from Tables 2 and 3 would not always be identical with the movement of funds shown in Table 1. 2 Represents 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. 3 Beginning with 1947, these figures include transactions of international institutions, which are shown separately in Tables 6 and 7. Securities of such institutions are included in foreign securities. 4 Beginning January 1950, excludes Bank for International Settlements, included in "International institutions" as of that date. 5 Data for August 1950 include, for the first time, certain deposit balances and other items which have been held in specific trust accounts, but which have been excluded in the past from reported liabilities. NOTE.—These statistics are based on reports by banks, bankers, brokers, and dealers. Beginning with this issue, certain changes have been made in the order and selection of the material published. Three tables showing capital movements by countries on a cumulative basis (formerly Tables 2, 3, and 4) have been discontinued. Total capital movement by country (as formerly shown in Table 2) can now be derived from the appropriate columns in Tables 2, 3, 6, 7, and 8. Data on the total volume of transactions in foreign and domestic securities, by types of securities, now appear in Tables 4 and 5. For security transactions by individual countries, figures on monthly net purchases or sales are now shown in Tables 6, 6a, and 7 in place of the cumulative figures formerly shown. For further explanation and information on back figures see BULLETIN for August 1951, p. 878. 1202 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTERNATIONAL CAPITAL TRANSACTIONS OF THE UNITED STATES—Continued TABLE 2.-—SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRIES—Continued [Amounts outstanding, in millions of dollars] Table 2a.—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- y Greece 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 s Y la u v g i o a - ot A h l e l r > 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 1945—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 1947—Dec. 31.. 739.8 124.9 52.8 30.5 89.5 34.7 56.2 47.1 8.7 12 8 58 6 73 7 12 1 138 2 194g—Dec. 3i 738.1 128 7 44 7 19 1 178 9 21 1 77 7 37 7 7 0 13 6 49 0 21 3 19 9 119 3 1949—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—July 31. . 801.9 35.5 106.1 11.3 31.9 15.8 245.0 40.6 69.5 4.7 32.6 6.2 10.4 116.5 15.2 5.0 55.7 Aug. 31. . 816.2 32.0 107.8 7.0 31.6 16.2 262.9 41.6 71.2 3.5 35.7 6.1 13.0 117.0 11.8 5.3 53.5 Sept. 30. . 866.2 35.3 111.6 6.1 36.4 15.7 286.4 41.8 80.1 12.4 39.1 6.1 13.4 109.8 9.8 5.2 56.9 Oct. 31.. 859.8 36.1 115.0 6.4 39.1 15.4 282.5 42.6 75.4 3.1 45.0 6.0 14.3 110.6 4.5 7.6 56.2 Nov. 30. . 811.3 38.7 128.2 6.6 43.7 17.6 227.7 44.2 44.5 6.9 50.2 6.1 20.1 108.7 5.5 12.3 50.4 Dec. 31. . 796.5 41.9 125.5 5.6 45.5 18.3 221.6 32.3 43.6 4.2 45.7 6.1 21.3 115.3 4.0 13 2 52 4 1951—Jan. 31.. 812.6 43.6 130.3 5.9 43.2 18.1 232.2 30.1 46.9 5.8 48.1 6.4 20.0 120.1 3.4 11.1 47.4 Feb. 28. . 807.9 45.0 115.1 4.3 42.2 20.3 241.0 31.4 51.3 5.6 54.0 6.4 25.3 105.5 3.3 8.3 48.9 Mar. 31. . 810.6 44.9 116.5 3.1 48.2 19.2 242.4 33.9 54.3 4.5 52.6 6.1 17.0 105.5 2.0 7.8 52.6 Apr. 30. . 822.9 42.4 117.4 3.2 47.8 22.1 266.4 35.8 57.8 4.0 46.8 6.2 19.2 92.8 2.3 6.4 52.4 May 31 P. 851.9 41.2 112.7 2.9 48.0 22.2 303.5 38.0 61.7 3.8 44.0 5.1 16.3 91.8 2.9 9.2 48.8 June 30P. 931.5 43.9 122.3 3.1 44.7 22.5 357.5 38.6 60.5 3.3 45.6 4.9 18.3 99.4 8.6 6.5 51.8 Table 2b.—Latin America Neth- Do- erate 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- l W I a a n n n d e d d i 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 t a e i e 2 r n r lic Surinam 1945—Dec. 11 1,046 4 77.3 14.5 195.1 66.3 79.2 128.3 116.4 28 2 43.9 88 7 49 7 158 8 1946—Dec. 11 1,104 8 112.6 14.0 174.0 50.7 57.8 153.5 152.2 16.1 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 194g—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—Dec. 31 1,436 7201.1 13.5 192.8 60.9 85.9 164.2 214.6 25.9 52.8 74.3 143.2 207.4 1950—July 11 1,455 0 239.0 13.3 150.3 69.0 70.7 245.8 45 23 s 174.9 30.1 49.8 69.5 28 73 8 104 9 66 3 Aug. 11 1,469 6 249.8 18.4 155.0 70.3 76.1 259.5 44 8 22 •^ 163.0 29.4 50.9 63.4 26 4 75 7 97.2 67.4 Sept.30. 1,544 0 268.9 19.0 187.1 76.9 65.9 260.6 41 8 22.7 176.4 29.0 58.0 72.2 24 0 73.9 101.8 65.8 Oct. 31 1,569 6 273.0 17.0 215.7 82.5 61.6 274.2 41 22 0 188.2 28.6 55.7 62.1 21 s 71 9 88.8 65 3 Nov. 30. 1,524 8 281.9 17.0 195.4 79.0 49.6 277.2 41 8 22.6 187.8 27.7 57.4 58.3 14 6 69.7 79.4 65.6 Dec. 31 1,612 9 301.8 20.4 226.0 79.5 53.4 259.1 42 7 25.4 207.1 30.2 60.2 59.2 16 1 75 1 85.2 71.3 1951—jan# 11 1,585 334.4 18 8 228.9 73.3 54 6 251.0 44 27. 142.5 31.5 62.3 54.2 28 83 78 5 72 2 Feb. 28. 1,596 1 312.1 20.8 249.8 70.6 49.7 257.7 45 1 30.6 140.7 30.0 60.6 51.9 42 2 79.0 75.9 79.6 Mar. 31. 1,646 3 345.2 22.4 259.6 69.9 44.2 276.0 45 8 31. 8 108.7 30.8 55.0 52.2 46.5 81.8 89.8 86.6 Apr. 30, 1,705 8 347.5 19.3 248.1 79.9 66.6 309.8 46 3 30,8 115.8 28.8 58.2 51.9 46 3 82.1 80.8 93.5 May 31 v1,712 7 353.2 19.7 241.7 76.6 66.2 327.4 48 7 29.2 110.4 25.6 57.9 53.9 46 8 74.0 87.2 94.3 June 30* 1,672.9 343.7 24.7 212.4 69.9 58.1 327.9 51 3 29.5 123.8 25.0 54.3 58.1 50 6 74.6 75.6 93.2 Table 2c.—Asia and ,411 Other For- Egypt Date Asia C m a h n o i d s n a a H K o o n n g g India I n n e d s o ia - Iran IsraelJapan i P p R h p e i i - l n - e T la h n a d i- T k u ey r- O A t s h ia e r 3 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 a n g n g y d l p o - - S U o o n u f i t o h n Other * Main- public tian Africa land Sudan 1945—Dec. 31 1,549.7 582.3 27.4 33.4 113.7 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—Dec. 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—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—July 31. 1,093.4 91.3 93.6 42.1 47.7 17.5 15.7353.2 290.4 29.4 12.4 100.1 193.5 19.5 39.8 53.0 19.7 61.5 Aug. 31. 1,146.8 94.3 90.1 51.3 50.7 18.1 15.2372.5 299.8 30.5 12.1 112.4 206.4 16.0 36.3 63.4 29.5 61.2 Sept. 30. 1,224.7 101.0 89.2 55.9 73.0 17.8 12.7 397.6 318.0 34.6 11.6 113.3 211.9 15.6 37.6 63.6 33.8 61.4 Oct. 31. 1,362.8 116.8 94.4 50.5 91.7 20.4 11.5 434.0 378.1 39.5 12.3 113.5 222.1 18.1 41.6 64.4 37.5 60.5 Nov. 30. 1,404.0 103.9 93.7 58.2 110.5 20.4 11.9454.0 379.7 44.4 13.1 114.3 249.7 21.8 58.2 66.3 44.3 59.1 Dec. 31. 1,378.6 81.8 86.1 55.7 114.7 20.3 12.6 458.5 374.4 48.2 14.3 111.9 254.5 19.1 58.1 75.6 44.0 57.7 1951—Jan. 31. 1,369.7 78.8 73.7 49.6 115.6 24.7 15.8452.5 376.6 46.4 12.5 123.6 250.3 19.8 53.2 85.1 36.4 55.9 Feb. 28. 1,401.1 77.8 65.8 59.7 124.9 26.3 15.6443.3 390.3 52.0 13.7 131.9 259.0 19.6 54.2 85.0 39.2 60.9 Mar. 31. 1,411.0 79.6 65.5 60.4 138.2 24.3 14.1 406.4 395.0 53.3 16.9 157.4 248.8 27.1 50.8 85.1 21.2 64.7 Apr. 30. 1,386.0 79.3 64.8 59.0 126.7 27.4 17.2376.6 404.5 57.7 20.6 152.2 251.9 18.3 51.4 105.6 9.5 67.1 May 31 v1,374.3 78.6 61.1 73.3 124.2 25.8 18.1348.8 414.5 63.8 18.2 148.0 255.2 19.9 51.6 105.1 12.9 65.6 June 30? 1,397.3 79.2 61.9 79.2 135.8 26.6 18.9342.8 403.7 65.9 12.3 171.2 253.2 26.2 55.0 89.4 16.8 65.9 P Preliminary. 1 Beginning January 1950, excludes Austria, Czechoslovakia, and Poland, reported separately as of that date. 2 Beginning January 1950, excludes Dominican Republic, Guatemala, El Salvador, and Uruguay, reported separately as of that date. 3 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. 4 Beginning January 1950, excludes Belgian Congo, reported separately as of that date. SEPTEMBER 1951 1203 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTERNATIONAL CAPITAL TRANSACTIONS OF THE UNITED STATES—Continued TABLE 3.—SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRIES * [Amounts outstanding, in millions of dollars] Date Total U K d n i o i n t m 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 ur th o e p r e E T ur o o ta p l e C a a d n a - A L m i a c t a e in r- Asia ot A he ll r 1945—Dec. 31 392.8 25.4 1.1 36.3 2.9 .3 74.6 140.7 53.3 158.9 29.9 9.9 1946—Dec. 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—Dec. 31 948.9 29.2 23.4 49.1 7.0 21.1 118.9 248.6 27.5 514.3 127.0 31.5 1948—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—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—July 31 667.1 36.7 20.3 4.5 9.7 26.4 54.9 152.3 46.1 330.4 86.2 52.0 Aug. 31 683.8 38.5 30.1 3.7 8.6 21.3 54.9 157.1 70.3 319.5 87.3 49.6 Sept. 30 745.9 76.3 30.2 3.3 9.9 17.1 56.7 193.5 109.7 297.7 84.4 60.6 Oct. 31 836.7 139.5 30.3 4.8 10.3 12.3 60.3 257.4 103.0 307.3 94.3 74.5 Nov. 30 847.4 127.2 31.2 3.7 11.4 14.5 67.2 255.2 98.4 333.8 90.6 69.4 Dec. 31 898.7 105.7 31.4 3.4 8.7 20.7 67.1 237.0 125.8 378.8 96.3 60.8 1951—Jan. 31 860.4 87.8 31.0 3.9 11.5 28.3 70.8 233.2 115.7 374.2 91.8 45.5 Feb. 28..... 913.3 101.7 31.9 3.7 11.8 30.3 74.2 253.6 121.2 397.7 93.0 47.8 Mar. 31 914.5 99.8 30.6 3.6 9.0 34.3 75.6 252.9 107.3 402.5 87.9 64.0 Apr. 30 891.5 110.7 6.3 4.2 10.8 35.2 75.5 242.6 117.6 374.0 95.1 62.1 May 31 P 919.1 98.8 7.0 3.9 11.0 53.8 83.5 257.9 116.7 376.9 101.7 65.9 June 30P.... 937.8 110.2 7.4 3.5 10.5 52.9 87.9 2 72.4 117.9 384.7 99.8 63.0 Table 3a.—Other Europe Czech- Date E O u t r h o e p r e A tr u ia s- g B iu e m l- v o a s k lo ia - m De a n rk - l F a i n n d - m G a e n r- y Greece N w o a r y - l P an o d - t P u o g r a - l m R an u i - a Spain S d w en e- USSRY sl u a g v o ia - ot A h l e l r2 1945—Dec. 3i 74 6 6 (3) (3) 33.9 .7 31.6 .5 .1 1.6 .9 (3) (3) 4.8 1946—Dec. 31. . 82.8 7.5 6.2 30.4 12.4 3.3 1.0 .1 7.2 4.9 (3) (3) 9.5 1947—Dec. 31. . 118.9 15.0 2.2 8.0 30.5 10.6 9.2 1.1 (3) .9 5.4 (3) 35.9 194g—Dec. 31 106 3 21 4 .6 3 4 30.5 1 2 8.4 .7 (3) 2.9 1.4 (3) 6.0 29.8 1949—Dec. 31.. 98.5 19.3 .4 8.2 30.0 .7 7.4 .5 7.0 7.0 2.3 (3) (3) 15.6 1950— A Ju u l g y . 3 3 1 1 . . . . 5 5 4 4 . . 9 9 ( ( 3 3 ) ) 1 14 2 . . 6 1 ( ( 3 3 ) ) 2 1 . . 2 8 1 1 . . 6 9 2 2 5 5 . . 1 1 . . 1 1 1. . 3 9 . . 1 1 . . 5 4 ( ( 3 3 ) ) 3 2. . 2 3 3 3 . . 8 1 ( ( 3 3 ) ) .2 4 4 . . 5 4 Sept. 30. . 56.7 (3) 14.6 (3) 2.0 2.7 25.2 .1 .9 .1 .4 (3) 3.3 3.0 (3) 4.3 Oct. 31.. 60.3 .1 17.6 3.3 2.0 25.3 .3 1.4 (3) .3 (3) 1.3 4.6 (3) (3) 3.9 Nov. 30. . 67.2 .1 21.3 (3) 4.4 2.2 25.5 .1 1.4 .5 1.3 6.4 3.8 Dec. 31.. 67.1 .2 21.5 (3) 3.2 2.2 25.4 .2 1.4 («) .5 (») 1.6 6.9 (3) 3.9 1951— F J e an b . . 3 28 1 . . . . 7 7 0 4. . 2 8 W2 2 2 2 4 . . 0 9 . . 1 1 2 2 . . 6 5 2 3 . . 7 5 2 2 5 5 . . 3 6 . . 2 1 1 1 . . 7 9 ( ( 3 3 ) ) . . 5 6 ( ( 3 3 ) ) 1 1 . . 7 2 1 9 0 . . 4 0 ( ( 3 3 ) ) (3) 4 4 . . 2 0 Mar. 31. . 75.6 .2 23.4 .1 3.9 4.0 25.9 .1 2.1 (3) .5 (3) 1.3 9.5 .1 (3) 4.3 Apr. 30. . 75.5 (3) 21.9 .3 6.7 3.3 25.9 .1 1.8 (3) .7 (3) 2.0 8.6 .1 4.2 May 31P. 83.5 (3) 19.7 (3) 7.3 6.3 25.9 .1 2.3 (3) 2.1 (3) 5.6 9.5 .2 4.3 June 30P. 87.9 (») 18.8 .2 6.2 6.2 25.4 .1 2.3 (s) 1.3 (3) 13.6 7.4 (3) 1.7 4.7 Table 3b.—Latin America Neth- Date A L m i a c t e a i r n - 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 D R c u i a e o b n n - - - - G m u a a l t a e- M ic e o x- I l W n a a e d n n r e i d d - e s s s t 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 - O A L ic a m th a ti e e 4 n r r lic Suri- ama nam 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 13 8 7 26.2 1947—Dec. 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—Dec. 31. . 516.6 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—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—July 31. . 330.4 37.9 7.7 74.0 3.5 58.4 27.7 1.4 1.9 50.5 1.2 9.5 4.5 2.6 6.7 25.4 17.4 Aug. 31. . 319.5 40.6 6.3 59.9 4.6 55.1 26.5 1.5 1.6 45.5 1.2 9.7 3.9 2.5 7.7 36.2 16.8 Sept. 30. . 297.7 40.5 6.1 63.9 3.3 46.2 26.4 1.5 1.6 44.9 1.1 10.5 4.0 2.7 6.0 24.4 14.6 Oct. 31. . 307.3 40.5 8.4 63.3 3.4 40.9 33.9 1.5 1.7 44.2 1.1 8.6 4.1 3.9 6.2 31.5 14.3 Nov. 30. . 333.8 43.0 8.4 68.7 3.8 39.9 30.6 1.7 2.1 47.4 1.3 8.4 3.5 5.5 8.1 46.8 14.8 Dec. 31.. 378.8 45.9 8.7 78.0 6.8 42.5 27.6 1.9 2.6 70.6 1.3 11.0 3.1 6.8 8.0 49.4 14.6 1951—Jan. 31.. 374.2 25.2 7.4 76.2 6.0 39.1 31.6 1.9 2.8 77.7 1.1 14.3 2.8 7.7 5.3 61.7 13.5 Feb. 28.. 397.7 25.2 5.5 77.3 5.3 38.6 36.9 1.9 2.7 75.7 1.2 12.7 2.6 5.9 7.3 85.8 13.2 Mar. 31. . 402.5 17.8 5.5 85.4 6.9 36.4 46.7 1.9 2.8 64.8 1.1 13.5 2.8 4.6 7.6 91.5 13.2 Apr. 30.. 374.0 10.9 6.3 80.5 9.6 51.6 44.2 1.8 2.7 58.5 1.4 13.8 2.8 3.4 7.8 65.9 13.0 May 31 P. 376.9 9.9 6.7 85.3 10.0 55.0 40.3 2.1 2.8 61.8 1.6 13.5 2.7 3.3 11.0 56.9 14.1 June 30P. 384.7 9.5 8.1 95.2 12.9 48.0 36.9 2.0 2.6 58.6 1.4 12.6 2.5 3.0 10.4 67.1 13.9 P Preliminary. 1 See footnote 1, p. 1202. 2 Beginning January 1950, excludes Austria, Czechoslovakia, and Poland, reported separately as of that date. 3 Less than $50,000. 4 Beginning January 1950, excludes Dominican Republic, Guatemala, El Salvador, and Uruguay, reported separately as of that date. 1204 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTERNATIONAL CAPITAL TRANSACTIONS OF THE UNITED STATES—Continued TABLE 3.—SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRIES—Continued [Amounts outstanding, in millions of dollars] Table 3c—Asia and All Other For- Egypt Date Asia C m a h n o i s d n a a H K o o n n g g India I n n e d s o ia - Iran IsraelJapan i P p R h p e i i - l n - e T la h n a d i- T k u e r y - O As th ia e 1 r o A th l e l r t A ra u l s i - a C g B o i e n a l g - n o A E a n g n g y d l p o - - S U o o n u i f o th n Other 2 Main- public tian Africa land Sudan 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 A 10.1 3.3 1947—£)ec# 31.. 127.0 40.8 2.6 29.6 .5 .9 27.4 17.7 7.5 31.5 9.0 .1 14.4 8.0 1948—DeCt 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 S 6 8 1949—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—July 31 .. 86.2 20.1 4.1 18.7 .1 11.5 11.2 1.1 9.6 1.2 .9 7.7 52.0 35.2 3.9 7.5 5.3 Aug. 31. 87.3 22.4 5.1 15.6 .1 10.4 14.5 1.4 8.0 1.5 .8 7.6 49.6 33.9 4.0 6.8 4.8 Sept. 30. . 84.4 21.6 3.7 14.7 .1 8.0 15.2 5.2 6.2 1.5 .8 7.5 60.6 44.5 3.9 7.3 4.8 Oct. 31.. 94.3 23.7 4.0 15.2 .1 7.6 16.3 8.1 7.0 1.5 .9 10.0 74.5 56.5 4.4 8.1 5.4 Nov. 30.. 90.6 18.3 4.3 14.7 .2 7.1 16.4 10.9 4.6 1.8 .7 11.6 69.4 49.5 4.4 8.1 7.3 Dec. 31. . 96.3 18 ? 3 0 16 2 2 6.6 18.9 12.1 4 9 1.5 .9 13.9 60 8 40 8 4 4 !3 8 1 7 2 1951—Jan. 31.. 91.8 10.5 3.0 16.5 .3 6.1 22.6 8.6 5.6 1.6 1.3 15.7 45.5 28.3 4.7 .3 5.1 7.0 Feb. 28. . 93.0 10.5 2.8 18.2 .2 6.2 24.1 7.7 4.4 1.4 1.7 15.9 47.8 30.8 5.4 .3 4.7 6.6 Mar. 31. . 87.9 8.4 2.3 16.7 .1 7.5 21.4 8.4 9.0 2.9 1.4 9.7 64.0 44.9 5.0 .3 7.0 6.8 Apr. 30. . 95.1 8.4 4.2 18.4 .2 7.9 25.7 6.8 6.5 4.0 1.5 11.6 62.1 41.5 5.2 .3 8.5 6.6 May 31 P. 101.7 8.4 4.4 16.1 .3 7.9 28.6 8.2 6.7 3.8 .8 16.6 65.9 41.8 5.8 .3 11.7 6.2 June 31v. 99.8 8.3 3.1 15.7 .2 7.4 23.1 9.9 9.5 3.1 .6 18.8 63.0 36.4 7.0 .4 12.6 6.6 TABLE 4.—PURCHASES AND SALES BY FOREIGNERS OF LONG-TERM DOMESTIC SECURITIES, BY TYPES 3 (Inflow of Foreign Funds) [In millions of dollars] U. S. Government bonds and notes 4 Corporate bonds and stocks 5 Net purchases Year or month Total Total of Purchases Sales pur N ch e a t ses Purchases Sales pur N ch e a t ses purchases sales s d e o c m ur e i s t t i i e c s 1945 377.7 393.4 -15.7 260.2 357.7 -97.4 637.9 751.0 -113.1 1946 414.5 684.2 -269.7 367.6 432.1 -64.5 782.1 1,116.3 -334.2 1947 344.8 283.3 61.5 226.1 376.7 -150.6 570.9 659.9 -89.1 1948 282.4 330.3 -47.9 369.7 514.1 -144.3 652.2 844.4 -192.2 1949 430.0 333.6 96.4 354.1 375.3 -21.2 784.1 708.9 75.2 1950 1,236.4 294.3 6 942.1 774.7 772.3 2.4 2,011.1 1,066.6 944.4 1950—July 105.6 14.2 91.4 63.9 63.9 169.5 78.2 91.4 August 157.3 9.2 148.1 57.8 62.9 -5.1 215.0 72.1 143.0 September 58.6 32.0 26.6 57.9 58.7 -.8 116.5 90.7 25.8 October 58.1 26.9 31.2 69.9 68.7 1.2 128.0 95.6 32.4 November 274.5 33.4 241.1 68.0 61.2 6.8 342.5 94.6 247.9 December ... 172.3 52.1 120.3 74.6 72.9 1.7 246.9 124.9 122.0 1951—January 106.6 27.6 78.9 94.7 95.7 -1.1 201.2 123.4 77.8 February 25.3 31.8 -6.5 71.3 71.5 -.2 96.6 103.3 -6.7 March 60.9 40.8 20.1 69.3 58.0 11.4 130.3 98.8 31.5 April 101.5 23.7 77.9 69.9 53.9 16.0 171.4 77.5 93.9 Mayp 46.7 41.3 5.4 83.9 71.9 12.1 130.6 113.1 17.5 June-" 211.5 479.2 -267.7 55.4 58.5 -3.1 266.9 537.7 -270.7 TABLE 5.—PURCHASES AND SALES BY FOREIGNERS OF LONG-TERM FOREIGN SECURITIES OWNED IN U. S., BY TYPES3 (Return of U. S. Funds) [In millions of dollars] Foreign stocks Foreign bonds Net Year or month Purchases Sales pur N ch e a t ses Purchases Sales pur N ch e a t ses pu T rc o h t a a s l es T sa o l t e a s l p s u e fo r c c r u o e h r i f a i g t s i n e e s s 1945 37.3 54.8 -17.5 318.1 347.3 -29.2 355.4 402.1 -46.6 1946 65.2 65.6 -.4 755.9 490.4 265.5 821 .2 556.1 265.1 1947 57.1 42.6 14.6 658.7 634.3' 24.5 715.9 676.8 39.0 1948 81.7 96.7 -15.0 211.6 291.4 -79.8 293.3 388.2 -94.8 1949 88.8 70.8 18.0 321.2 311.5 9.8 410.1 382.3 27.8 1950 173.8 198.2 -24.4 589.2 710.2 -121.0 763.0 908.4 -145.4 1950—July 11.7 11.5 .2 22.1 23.7 -1.6 33.8 35.2 -1.3 August 13.1 12.9 .2 13.4 67.0 -53.6 26.6 79.9 -53.3 September 18.1 35.4 -17.3 31.1 187.2 -156.1 49.2 222.6 -173.5 October 17.7 18.1 -.4 123.8 60.1 63.7 141.5 78.2 63.2 November 15.8 16.8 -1.0 25.4 20.5 4.9 37.3 3.9 December 13.5 22.5 -9.0 27.5 20.4 7.1 43.0 -1.9 1951—January 22.4 31.0 -8.6 32.5 24.2 8.3 54.9 55.2 -3 February 29.8 30.4 -.6 25.3 36.0 -10.7 55.1 66.3 — 11 *3 March 20.8 19.4 1.4 42.0 89.7 -47.6 62.8 109.1 -46.2 April 20.8 16.2 4.6 31.1 67.6 -36.5 51.9 83.8 -31.9 Mayp 22.9 17.7 5.2 27.5 97.7 -70.2 50.3 115.3 -65.0 June? 17.7 16.4 1.2 39.1 73.9 -34.8 56.8 90.4 -33.6 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. 3 Includes transactions of International institutions. 4 Through 1949 includes transactions in corporate bonds. 5 Through 1949 represents transactions in corporate stocks only. 6 Includes 493 million dollars by Canada, 199 million by France, and 118 million by International institutions. 7 Less than $50,000. SEPTEMBER 1951 1205 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTERNATIONAL CAPITAL TRANSACTIONS OF THE UNITED STATES—Continued TABLE 6.—DOMESTIC SECURITIES: NET PURCHASES BY FOREIGNERS OF U. S. SECURITIES, BY COUNTRIES (Inflow of Foreign Funds) [Net sales, ( —). In millions of dollars] Inter- Y m e o a n r t o h r na in ti s o t n i- al Total U K d n i o i n m t g e - d France N l e a t n h d e s r- Sw la i n tz d er- Italy E O u t r h o e p r e E T u o ro ta p l e Canada A L m at e in r- Asia o A th l e l r tutions ica 1945 — 113 1 -32 5 4.3 -5.5 -13.1 .3 -4.4 -50.8 -98.6 26.4 10.8 -.9 1946 -334.2 -36.9 -6.8 -26.5 -17.5 -.1 -10.8 -98.6 -16.4 6.3 -224.5 -1.0 1947 74 5 — 163 6 —8 9 —50 2 —98 2 13 0 -17.1 -14.1 -175.5 3.2 -3.5 10.0 2.2 1948 7.6 — 199 8 9.1 -82.8 -79.3 -40.0 0) 2.6 -190.4 7.5 10.2 -23.3 -3.9 1949 87.0 -11.8 20.9 -6.8 -25.5 44.2 1.5 2.2 36.5 -49.0 2.5 -2.1 .2 1950 . 121 2 823 2 64 0 197 8 -6.3 19.0 -.7 73.8 347.5 458.2 30.1 -15.3 2.7 1950—July .8 90.6 1.2 .3 -1.5 7.2 0) 8.8 15.9 75.4 -1.0 -.3 .5 Aug 6.5 136.5 1.1 99.3 1.1 -.9 5.3 106.0 32.0 -1.6 .2 Sept .2 25.6 6.7 30.5 2.0 2.4 .'3 3.9 45.7 -22.2 .9 1^3 -.2 Oct. 8 0 24 4 16 9 20 0 2 — 4 .2 9 37 7 -14 0 - 6 1 2 .1 Nov.. . . 1.1 246.8 4.2 35.9 -.4 -2.6 .3 35.1 72.5 153.6 20.1 .5 .2 Dec 25.9 96.1 2.9 15.9 .7 -8.2 .2 -3.1 8.5 90.1 -1.7 -1.2 .4 1951—Jan 51.9 25.9 20.0 1.0 .5 -.2 .3 9.5 31.2 -4.4 -2.3 1.6 2 Feb 3.2 -9.9 4.0 .4 .9 -.9 -.9 -1.4 2.0 -11.3 -.4 .2 — A Mar.. . . 25.8 5.6 -.4 20.3 -.1 1.4 .5 .7 22.5 -20.1 3.1 .4 -.3 Apr 17.7 76.2 1.0 50.6 0) 6.7 .3 -8.2 50.3 16.1 8.9 .8 .2 May'... 2.3 15.2 -2.9 1.3 -.1 4.6 .3 -3.6 -.4 -1.8 3.1 14.7 -.4 June?... -56.1 -214.6 -5.5 -34.5 -5.3 2.7 .1 -5.4 -47.9 -156.4 -10.7 .5 -.1 TABLE 6a.—DOMESTIC SECURITIES: NET PURCHASES BY FOREIGNERS OF U. S. SECURITIES Other Europe; Latin America; and Asia For- Y m e o a n r t o h r E O u t r h o e p r e t A ri u a s - 2 g B iu e m l- N w o a r y - S d w en e- o A th l e l r A L i a m c t a i e n r- Brazil Cuba M ic e o x- p P a R u m o a b e n f a - l - ic S d a o E l r v l a 2 - O A L i a m t c h t a i e e n r r - Asia M C m l a a h a n o n i i d s n d n a a - Japan O A t s h i e a r ,. 1945 -4 4 1 1 0 -1 3 -5.5 26.4 .4 3.2 -.2 -5.7 28.7 10.8 22.7 1 — 11.8 1946 -10 8 6 9 9 -3.4 -10.2 6.3 -.4 1.7 6.8 4.5 -6. -224.5 -200. s (n -24.0 1947 -14.1 9 -4 1 -2.5 -6.6 -3.5 -1.4 -.9 2.5 -6.9 3. 9 10.0 -3. 9 8 s 4.7 1948 2 6 2 6 2 .1 10.2 .6 -.8 2.9 -4.7 12.9 —23.3 —22.7 1 -.7 1949 2 2 1 6 Q .4 1.1 2.5 2 -1.0 .3 4.2 7 -2.1 -7. 9 5 0 .1 1950 73.8 18 4 12 6 36 7 -1.1 7.1 30.1 -.1 24.6 .5 .1 10.9 -5. 9 -15.3 -3. 0 -13 7 1.3 1950—July... . 8.8 0) 1 8 0) -.1 7.2 -1.0 -.2 .3 C1) -1.0 0) 0) -.3 2 C1) -.5 Aug.. . . 5.3 4.8 1 .3 .1 .1 -1.6 .5 .6 -.5 -.7 C1) -1. 5 -.1 — 2 .1 Sept 3.9 3 9 —2 0) \ .9 .2 1.0 2 -.2 0) f1) 1.3 1 0) 1.2 Oct .9 .1 1 0 0) -.2 -.1 -.6 .1 0) -.1 -.6 0) 1 1.2 3 .8 Nov 35.1 —.2 1 4 34.2 -.1 -.2 20.1 -.4 20.2 .4 -1.0 0) 8 .5 0) (1) .5 Dec -3.1 0) 6 1.5 -.7 -4.4 -1.7 -.1 -.3 .2 -.2 0) -1. 2 -1.2 3 0) -1.0 1951—Jan 9.5 3.7 _ 2 .4 0) 5.6 -2.3 -.1 -.2 -.9 -.9 0) __ 3 1.6 0) f1) 1.7 Feb -1.4 -1 .7 0) .5 0) -.2 -.4 -.4 -.5 .3 -.2 0) 4 .2 0) 0) .3 Mar .7 0) 7 0) .3 -.3 3.1 .2 .7 .3 1.0 0) 8 .4 5 0) .9 Apr -8.2 —.5 9 -8 .7 (0 .1 8.9 -.1 6.4 -.1 .2 C1) 2.4 .8 0) .1 .6 J M un a e y ? p . .. - — 5 3 .4 6 — -7 1 .3 Q 9 s — 1 2 .8 7 .1 -.6 .5 -10 3 . . 7 1 0 1 ) .0 0 - ) .9 .8 3 -.2 .4 -1 ( 0 1) .9 2.Q 4 14. .5 7 —.1 0) 1 14 . . 6 4 TABLE 7.—FOREIGN SECURITIES: NET PURCHASES BY FOREIGNERS OF FOREIGN SECURITIES OWNED IN U. S., BY COUNTRIES (Return of U. S. Funds) [Net sales, ( —). In millions of dollars] Inter- Y m e o a n r th or na in ti s o t n i- al Total U K d n i o i n m t g e - d France N l e a t n h d e s r- Sw la i n tz d er- Italy E O u t r h o e p r e E T u o ro ta p l e Canada A L m at e in r- Asia o A th l e l r tions ica 1945 -46.6 -8.8 * .2 -.6 .7 j 2.3 -6.3 -55.8 15.1 -.5 1.0 1946 265 1 —20 9 -1.0 -7.0 -13.9 — ^8 10 9 —32 6 187 6 131 3 3 —21 4 1947 -249 3 288.3 -2.0 -3.1 -29.9 -14.9 -.3 15.6 -34.4 205.2 89 2 5 27 8 1948 0) -94.9 -9.9 -4.3 -5.3 -35.4 .1 11.4 -43.4 -102.2 40.7 1.6 8.4 1 1 9 9 4 5 9 0 — — 1 3 6 6 0 — 1 4 4 3 1 8 8 — -6 1 . 3 1 5 -1.3 .4 -4.7 1 17 9 . . 2 1 . . 4 5 24 7 .8 6 3 1 0 3 .4 8 -1 — 9 0 10 .0 6 2 2 0 9 2 8 1 8 0 2 3 6 9 1 950—July .1 -1.5 -.7 -.3 .7 -1.8 C1) .4 — 1.6 -2.9 2.6 0) .4 Aug -53.3 — .1 -.2 -.1 -.3 0) .5 -.2 -55.2 1.9 (i) 2 S O e c p t t -2.0 -17 6 3 5 . . 5 2 -1 -. . 2 6 0 - ) .6 .4 1 -2 3 . . 5 6 0 0 ) ) -.3 .2 -3 2 . . 7 7 -17 6 4 5 . . 2 8 -3 2 . . 0 5 . . 2 9 . . 1 3 Nov C1) 3.9 .7 ? -'.5 1.7 0) .1 1.7 .4 1.6 0) .2 Dec -1.9 0) -.7 -.2 -.4 2.7 1.4 2.0 1.9 -6.8 1951—Jan c .3 -.9 -1.7 .8 .2 .8 -.8 -3.9 2.7 1.6 .6 Feb 0)' -11.2 .4 -2.5 .4 -.2 -.1 1.6 -.3 -12.8 1.3 .1 .5 A M M p a a r r y?... -4 - - 3 8 . . . 1 0 7 - - 6 2 4 8 2 . . . 9 9 5 - 0 2 ) .1 .4 -2 -. . 4 2 .2 . . . 9 2 2 3 2 1 . . . 6 1 8 - 4 .5 . . 2 1 3 4 2 . . . 2 5 0 - - 3 6 -5 4 4 . . . 1 5 5 2 3 1 . . . 9 5 3 -8 1 . . 9 . 5 1 2. . . 2 3 1 June"... -33.6 -.2 .2 -.6 1.8 .1 7.5 8.8 -37.6 3.9 -9.1 .4 0) P Preliminary. 1 Less than $50,000. 2 Not available until 1950. 1206 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTERNATIONAL CAPITAL TRANSACTIONS OF THE UNITED STATES—Continued TABLE 8.—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) Year or month Total K U in n g i d te o d m France N l e a t n h d e s r- Sw la i n tz d er- Italy E O u t r h o e p r e E T u o ro ta p l e Canada A L m a e t r i i n ca Asia O A th ll er 1945 17.8 1.3 .3 3.8 7.3 .1 3.1 15.9 3.4 .8 -1.8 -.5 1946 9.7 -.6 -2.9 -8.5 9.3 0) 1.1 -1.6 2.0 7.5 1.0 .7 1947 -11.3 -1.0 -1.4 -4.8 -1.5 -.2 -.5 -9.3 -2.0 -.6 1.8 -1.4 1948 -19.3 -1.2 -2.5 -3.4 -10.7 .1 -3.2 -20.8 .1 1.2 .4 -.1 1949 .6 .1 -.5 .2 .9 .2 .1 1.0 .9 -1.3 -.2 .2 1950 8.0 -.1 -.1 2.5 .7 .4 -.2 3.0 -3.0 4.4 3.0 .6 1950—July -2.5 .6 .2 -.3 1.9 0) .2 2.5 A -2.2 -3.9 .7 August 2.0 -.6 -.7 .2 -1.4 .1 -.2 -2.7 -.6 3.9 1.3 .1 September -.8 .2 .8 .5 -1.6 -.1 .1 -.1 .5 -.5 -.1 -.6 O N c o t v o e b m er ber 2 7 . . 4 3 -.4 .5 -.3 .6 -.2 .4 - 1 .5 .9 0) -.3 .3 1. . 7 7 . . 4 8 3. . 2 3 1. . 4 9 . . 1 2 December • 1 -.3 -.8 .6 2.2 ! .7 2.6 -4.0 .9 .8 -.2 1951—January -1.3 .3 .1 -.3 -3.0 0) -.2 -3.2 1.3 1.0 -.2 -.2 February 2.7 .1 1.3 .2 -.2 -.5 1.0 .4 1.1 .1 .1 March -2.3 -.4 -.4 -.2 .5 .3 -.4 -.9 -.7 -.1 -.3 April -4.8 -.6 -.3 .3 -4.2 i'i .6 -3.1 -.4 2 -.9 -.6 May? -4.5 -1.5 -.5 -.6 1.2 -.4 -.6 -2.4 -.2 -2^5 .2 .4 June? 2 11.1 2.5 .2 3.2 2.5 .1 .7 9.2 2.8 -.5 -.4 0) p Preliminary. 1 Less than $50,000. 2 Amounts outstanding (in millions of dollars): foreign brokerage balances in U. S., 87.6; U. S. brokerage balances abroad, 31.7. 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 ep o o n r th te l d y A So fr u ic th a d R e h s o ia - A W fr e ic s a t 2 C B o el n g g i o an 3 U St n a i t t e e s d 4 C a a d n a - M ic e o x- Co b l i o a m- Chile r N ag i u ca a - 5 Au l s i t a ra- India3 $1-- vains of gold 9/io/ne: i. e.,an ounceof 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 1943 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 777.0 701.5 429.8 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 756 0 697 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 794 5 728 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 826.0 753.2 409.7 18.5 23.1 12.9 67.3 144.2 14.2 12.6 6.3 7.7 31.3 5.7 1950 779.2 408.2 17 9 23.2 12.0 83.1 155.7 14.3 13.3 6.7 8.0 30.1 6.7 1950—june 66.2 34.6 L.5 1.9 1.0 6.6 12.9 1.5 1.0 .6 .7 3.4 .6 July 64.9 34.6 t.5 1.9 1.0 7.1 12.9 .8 1.1 .6 .7 2.3 .6 August 67.4 34.9 L.5 1.9 1.1 7.9 13.2 1.5 1.1 .5 .7 2.5 .6 September.. 65.6 34.0 L.5 2.0 1.0 7.8 12.8 1.1 1.1 .5 .7 2.6 .6 O N c o t v o e b m er ber. . 6 6 7 5 .5 0 3 3 3 3 . 3 9 L.5 s 1 1 . 9 9 1. . 0 9 87..25 1 13 3 . . 2 3 1 1 . . 1 4 1 1 . . 2 3 . . 8 6 . . 6 6 2 2 . . 8 8 . . 7 6 December. . 63.4 32.9 4 2.0 .9 7.0 13.4 .9 .8 .7 .6 2.4 .5 1951—January. . . . 33.4 1.4 2.0 .9 5.9 13.1 1.4 .6 .6 2.4 .5 February 31 1 1 4 2 1 1.0 5.2 12.1 .7 .4 .7 2.4 .6 March 33.4 1.5 2.0 1.1 5.8 13.0 1.5 .6 . 7 2.4 .6 April 33 2 1.4 2.0 1.0 5.5 12.7 1.5 .8 .7 May 34 6 1 9 1 l 5.5 12 9 1 4 .7 6 June 33.9 1.1 5.9 12.7 .6 .6 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 through 1949 are estimates of United States Mint. Figures for 1950 and 1951 are estimates of American Bureau of Metal Statistics. 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. SEPTEMBER 1951 1207 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] Estimated United States E m n o d n t o h f tota ( l e x w cl o . rld A t r i g n e a n- g B iu e m l- Bolivia Brazil Canada Chile lo C m o b - ia Cuba m De a n rk - E d c o u r a- U.S.S.R.)i Treasury Total2 1945—Dec 33,770 20,065 20,083 1,197 716 22 354 361 82 127 191 38 21 1946—Dec 34,120 20,529 20,706 1,072 735 22 354 543 65 145 226 38 21 1947—Dec 34,550 22,754 22,868 322 597 23 354 294 45 83 279 32 20 1948—Dec 34,930 24,244 24,399 143 624 23 317 408 43 51 289 32 21 1949—Dec 35,410 24,427 24,563 216 698 23 317 496 40 52 299 32 21 1950—Aug.. .. 23,627 23,745 216 643 23 317 545 40 70 291 31 19 Sept.... 35,800 23,483 23,591 216 599 23 317 554 40 71 291 31 19 Oct . . . 23,249 23,349 216 592 23 317 568 40 72 291 31 19 Nov.... 23,037 23,153 216 581 23 317 578 40 73 271 31 19 Dec 35,820 22,706 22,820 216 587 23 317 590 40 74 271 31 19 1951—Jan.... 22,392 22,461 216 591 23 317 606 45 75 271 31 19 Feb .. 22,086 22,162 288 604 23 317 617 45 76 271 31 19 Mar.... 35,800 21,806 21,927 288 589 23 317 618 45 P63 271 31 22 Apr.... 21,805 21,900 288 609 317 635 45 271 31 22 May. . . 21,756 21,861 288 589 317 643 45 271 31 22 June... "P35',920" 21,756 21,872 288 586 317 652 45 281 31 22 July 21,759 21,852 288 595 317 31 22 E m n o d n t o h f Egypt 3 France4 G m u a a l t a e- India Iran 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 - Pa ta k n is- Peru 1945—Dec 52 1,090 28 274 131 24 294 270 23 80 28 1946—Dec 53 796 28 274 127 28 « 201 181 265 23 91 24 1947—Dec 53 548 27 274 142 58 M80 100 231 23 72 20 1948—Dec 53 548 27 256 140 96 42 166 23 52 14 20 1949—Dec 53 523 27 247 140 252 178 52 195 27 51 27 28 1950—Aug 53 523 27 247 140 252 178 113 231 28 50 27 28 Sept 53 523 27 247 140 252 188 115 231 29 50 27 28 Oct 53 523 27 247 140 252 188 116 231 29 50 27 28 Nov 53 523 27 247 140 252 188 133 231 29 50 27 28 Dec 397 523 27 247 140 252 208 208 311 29 50 27 31 1951—Jan 97 523 27 247 139 252 228 281 311 30 50 27 31 Feb 102 523 27 247 139 252 228 281 311 30 50 27 31 Mar 117 523 27 247 139 252 228 304 311 30 50 27 46 Apr. . . . 117 548 27 247 138 252 229 282 311 30 50 27 46 May 124 548 27 247 138 252 229 311 30 50 27 46 June.. . . 143 548 27 247 138 252 229 311 31 50 27 46 July.... 174 548 27 247 138 229 50 27 46 Inter- Bank for E m n o d n t o h f Po g r a t l u- E v l a d S o a r l- A So fr u ic th a Spain Sweden S l w a e n r i - t d z- T la h n a d i- Turkey U K d n i o i n m t g e - d g U u r a u y - V zu e e n l e a - n M a t t a o io r n y n e a - l n S I a n e ti t t o t e l n r e - a - l Fund ments 1945—Dec 13 914 110 482 1.342 43 241 6 2,476 195 202 39 1946—Dec 433 12 939 111 381 L.430 34 237 8 2.696 200 215 15 32 1947—Dec 310 15 762 111 105 1,356 34 170 62,079 175 215 1,356 30 1948—Dec 236 15 183 111 81 1,387 34 162 6 1,856 164 323 1,436 36 1949—Dec 178 17 128 85 70 1,504 118 154 6 1,688 178 373 1,451 68 1950—Aug 177 20 180 61 71 1,537 118 146 208 373 1,494 125 Sept 177 20 179 61 87 L.529 118 146 62,756 217 373 1,494 145 Oct 177 20 183 61 91 1,520 118 150 217 373 1,494 149 Nov. ... 177 23 187 61 90 L.508 118 150 217 373 1,494 159 Dec 192 23 197 61 90 L.470 118 150 6 3,300 236 373 1,495 167 1951—Jan 197 23 202 61 93 1,474 118 150 260 373 1,495 140 Feb 197 23 208 61 108 1,482 118 150 287 373 1,495 125 Mar 202 23 205 61 114 1,448 118 150 6 3,758 295 373 1,495 119 Apr. . . . 212 23 210 61 124 1,444 118 150 295 373 1,495 161 May 217 23 210 61 129 1,458 115 150 '293 373 1,495 153 June 217 26 210 60 129 1,451 117 150 63,867 373 1,518 151 July 26 129 373 1,519 155 1208 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NET GOLD PURCHASES BY THE UNITED STATES, BY COUNTRIES [Negative figures indicate net sales by the United States] (In millions of dollars at $35 per fine troy ounce) Year or quarter Total K U in n g i d te o d m g B iu e m l- France N la e e n r t d - h s - Po g r a t l u- S d w en e- S l w a e n r i - t d z- E O ur t o h p e e r * Canada A t r i g n e a n- Cuba Mexico 1945 —452 9 31.1 278.5 -47.9 -86.8 -7.4 36.8 -224.9 -85.0 -23.8 1946 721.3 — .2 14.2 -10.0 80 2 —29 9 27 3 337 9 153 2 —30 0 36 9 1947 2,864.4 406.9 222.8 264.6 130.8 116.0 238.0 10.0 86.6 311.2 727.5 -65.0 45.4 1948 1,510.0 734.3 69.8 15.8 40.7 63.0 3.0 —5 6 5 8 114 1 — 10 0 61 6 1949 193.3 446.3 -41.0 -23.5 14.0 -40.0 2-159.9 3.4 -49.9 -10.0 -16.1 1950 -1,730.3 -1,020.0 -55.0 -84 ".8' -79.8 -15.0 -22'.9* -38.0 -68.3 -100.0 28.2 -118.2 1949 Jan.-Mar 68.8 -12.5 10.4 10.5 -5 0 — 13 7 3 4 2 3 Apr -June 173 9 162 4 -31 0 — 10 0 — 11 2 7 9 July-Sept 101.5 283.9 3.5 —20 0 2—119 1 — 10 0 — 11 3 Oct.-Dec -151.0 2.5 -33.9 -5.0 -15.9 -49.9 -15.0 1950 Jan.-Mar -202.5 -80.0 -35.0 — 13 0 — 12 4 — 15 8 Apr .-June -31.7 -20.0 -3.0 — 11 9 July-Sept — 732 2 —580 0 —28 5 — 16 0 —25 0 3 4 8 ? —40 5 Oct.-Dec -763.8 -360.0 -56.3 -79.8 -15.0 -4.0 -47.4 -100.0 20.0 -61.9 1951 Jan.-Mar -880.1 -400.0 -12.3 -91.7 -4.5 -10.0 -15.0 -15.0 -44.3 -49.9 -124.4 Apr.-June . ... -57.0 -80.0 2.0 — 15 0 -11.2 ' — io!6 * 64.1 NET GOLD PURCHASES BY THE UNITED STATES, ANALYSIS OF CHANGES IN GOLD STOCK OF BY COUNTRIES—Continued UNITED STATES [Negative figures indicate net sales by the United States] [In millions of dollars] (In millions of dollars at $35 per fine troy ounce) Gold stock at Ear- Other Asia Union end ofperiod Increase Net marked Domes- Year or Uru- Vene- Latin and of All in total gold im-gold: de- tic gold quarter guay zuela Amer- Oceania South other Period gold port or crease producica Africa Treas- stock export or in- tion 2 ury Total1 (-) crease 1945 -37.9 -73.1 -27.8 s-188.3 3.7 1946 —4 9 —9 2 25 0 13.7 94.3 22.9 1947 25.1 -3.7 79.1 1.0 256.0 11.9 1942 22,726 22,739 -23.0 315.7 -458.4 125.4 1948 10.7 -108.0 13.4 -4.1 498.6 6.9 1943 21,938 21,981 -757.9 68.9 -803.6 48.3 1949 -14.4 -50.0 -7.5 -52.1 195.7 -1.6 1944 20,619 20,631 -1,349.8 -845.4 -459.8 35.8 1950 —64 8 -17.6 -39.2 13.1 -47.8 1945 20,065 20,083 —547.8 -106.3 -356.7 32.0 1946 20,529 20,706 623.1 311.5 465.4 51.2 1949 1947 22,754 22,868 82,162.1 1,866.3 210.0 75 8 1948 24,244 24,399 1,530.41,680.4 -159.2 70.9 Jan -Mar 3.6 -2.3 72.0 .1 1949 24,427 24,563 164.6 686.5 —495.7 67.3 Apr -June 3 0 3.7 -6.6 55.6 .1 1950 22,706 22,820 -1,743.3 -371.3 -1,352.4 83.1 July-Sept -16.5 -50.0 -2.9 -2.2 48.1 -2.0 Oct -Dec — 1 0 -11.9 -41.0 19.9 .2 1950—Aug... 23,627 23,745 -494.4 -42.2 -431.4 7.9 Sept... 23,483 23,591 -153.9 -96.5 -65.9 7.8 1950 Oct.. 23,249 23,349 -242.5 -93.4 -146.2 8.2 Nov.. 23.037 23,153 -195.5 -158.6 -35.3 7.5 Jan.-Mar -12.0 -10.5 -.8 3.9 -27.0 Dec... 22,706 22,820 -333.2 -93.0 -237.9 7.0 Apr -June —2 0 -1 0 9.2 -3.0 1951—Jan... 22,392 22,461 -358.8 ••-105.6 -248.5 5.9 J O u c l t y . - -D Se e p c t - - 2 2 3 6 . . 9 9 -6!o - - 1 2 4 3 . . 9 6 -1 -3 4 . . 0 8 F M e a b r . . . . . . 2 2 2 1 , , 0 8 8 0 6 6 2 2 1 2, , 1 9 6 2 2 7 - - 2 2 9 3 8 5 . . 7 4 - - 1 1 2 0 3 7 . . 5 9 - -1 1 1 8 1 4 . . 2 4 5 5 . . 2 8 Apr. .. 21,805 21,900 -27.3 -110.6 101.9 5.5 1951 May. . 21,756 21.861 -38.5 -41.0 -12.9 5.5 Tune. . 21,756 21,872 10.4 '-37.6 46.3 5.9 Jan.-Mar -50.9 -11.7 -22.6 -28.0 July.. . 21,759 21,852 -19.2 -16.2 -8.8 5.5 Apr.-June 15.0 "—".9 -5.0 -3.8 "12.7 -25.0 Aug... P2 1,854P21,986 P133.3 (4) 5 137.0 (4) 1 Includes Bank for International Settlements. P Preliminary. r Revised. x See footnote 2 on opposite page. 2 Includes sale of 114.3 million dollars of gold to Italy. 2 Yearly figures through 1949 are estimates of United States Mint. 3 Includes sales of 185.3 million dollars of gold to China. Figures for 1950 and 1951 are estimates of American Bureau of Metal NOTE.—This series replaces the series on "Net Gold Imports to Statistics. United States, by Countries," published previously. 3 Change includes transfer of 687.5 million dollars gold subscription to International Monetary Fund. 4 Not yet available. 5 Gold held under earmark at the Federal Reserve Banks for foreign account, including gold held for the account of international institutions, amounted to 5,906.4 million dollars on Aug. 31, 1951. Gold under earmark is not included in the gold stock of the United States. NOTE.—For back figures and description of statistics, see Banking and Monetary Statistics, Table 156, pp. 536-538, and pp. 522-523. SEPTEMBER 1951 1209 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTERNATIONAL MONETARY FUND AND INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT [End-of-month figures. In millions of dollars] 1951 1950 International Fund International Bank July Apr. Jan, July June Mar. Dec. June Gold 1,519 1,495 1,495 1,464 Gold Currencies (balances with depositories Currencies (balances with depositories and securities payable on demand): and securities payable on demand): United States 1,316 1,313 1,304 1,306 United States 9 6 5 5 Other 4,327 4,315 4,229 Other 919 920 921 924 Unpaid balance of member subscriptions. 869 907 1,003 '989 Investment securities (U. S. Govt. obli- Other assets 1 1 1 1 gations) 457 466 437 449 Member subscriptions 8,037 8,037 8,037 8,022 Calls on subscriptions to capital stock3. . 4 4 4 5 Accumulated net income -6 -6 -5 -4 Loans (incl. undisbursed portions and incl. obligations sold under Bank's guarantee) 1,037 938 868 738 1951 1950 Other assets 19 12 9 8 Net currency purchased s Bonds outstanding 325 311 261 261 (Cumulative—millions of dollars) Liability on obligations sold under guar- July June May July Lo a a n n t s e — e undisbursed 35 3 2 3 27 3 9 0 22 2 9 9 1 2 2 6 6 Other liabilities 6 3 5 5 Australian pounds 20.0 20.0 20.0 20.0 General reserve • » 42 38 35 27 Belgian francs 11.4 11.4 11.4 11.4 Special reserve 20 18 17 14 Brazilian cruzeiros 65.5 65.5 65.5 37.5 Capital8 1,668 1,668 1,668 1,670 Chilean pesos 5.4 5.4 8.8 8.8 C C z o e s c ta h o R sl i o ca v n a k c ia o n lo n k e o s runy. - 6 .9 .0 - 6 .9 .0 - 6 .9 .0 - 6 .9 .0 1 Includes 16 million dollars receivable for currency adjustments D Eg an y i p s t h ia n k ro p n o e u r nds - 1 5 0 . . 5 2 - 1 5 0 . . 5 2 - 1 5 0 . . 5 2 - 1 5 0 . . 5 2 res 2 u A lti s n o g f f J r u om ne t 3 h 0 e , 1 d 9 e 5 v 1 al , u th at e i o F n u s n d in h S a e d p s te o m ld b e 7 r 5 9 1 .8 9 4 m 9. illion U S. dollars; F E r t e h n io c p h i a fr n a n d c o s llars 125.0 125.0 125.0 125. . 0 6 i s n te r a li d n d g i t i i n o n M , a t y h e 1 9 F 4 u 7 n a d n d s o 3 l 0 d 0 t m o il t l h io e n N B e e t l h g e ia r n la f n r d a s n cs 1 .5 in m M il a l y io n 1 94 p 8 o , u s n o d ld s Indian rupees 100.0 100.0 100.0 100.0 to Norway 200 million Belgian francs in June and July 1948, and sold Mexican pesos 22.5 22.5 to Brazil 10 million pounds sterling in January 1951. Repurchases N No et r h w e e r g la ia n n d s k r g o u n i e ld r ers. . . . 7 9 5 . . 6 4 7 9 5 . . 6 4 7 9 5 . . 6 4 7 9 5 . . 6 4 am 8 o E u x n c te lu d d e t s o u 6 n 9 c .3 a ll m ed il li p o o n r t d io o n ll s a r o s. f capital subscriptions, amounting to South African pounds. . . 10.0 6,671 million dollars as of June 30, 1951, of which 2,540 million repre- Turkish liras 5.0 5.0 5.0 5.0 sents the subscription of the United States. Pounds sterling 300.0 300.0 300.0 300.0 Yugoslav dinars 9.0 9.0 9.0 9.0 Total. 736.0 736.0 762.0 744.6 CENTRAL BANKS A d ss e e p t a s r o tm f e is n s t ue Ass d e e ts p a o r f t m ba e n n k t ing Liabilities ofbanking department Bank of England Note (Fig p u o r u e n s d s in s m te i r l l l i i n o g n ) s of Gold* a O s t s h e e ts r 2 N c a o o n t i d e n s a v c n D o a d n u i s c n - a e t d s s - Se t c ie u s ri- cir ti c o u n la 3 - Bankers' Pub D li e c posits ECA Other t c i l O e i a a s t p b h i a i e t l n a i r - l d 1941—Dec. 31 .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 1943—Dec. 29 .2 1,100.0 12.5 2.5 307.9 1,088.7 234.3 10.3 60.4 17.9 1944—Dec 27 .2 1.250.0 13.5 5.1 317.4 1,238.6 260.7 5.2 52.3 17.8 1945—Dec. 26 .2 1,400.0 20.7 8.4 327.0 1,379.9 274.5 5.3 58.5 17.8 1946—Dec 25 . .2 1,450.0 23 A 13.6 327.6 1,428.2 278.9 10.3 57.3 18.1 1947—Dec. 31 .2 1,450.0 100.8 15.2 331.3 1,349.7 315.1 18.6 95.5 18.1 194g—Dec 29 . .2 1,325.0 36.1 16.7 401.1 I,293.1 314.5 11.7 17.4 92.1 18.1 1949—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—Aug. 30 .4 1,350.0 53.8 23.4 575.0 1,302.0 278.8 12.8 246.5 95.7 18.5 Sept. 27 .4 1,350.0 70.2 21.0 583.0 1,283.3 291.8 14.8 254.8 94.3 18.5 Oct 25 .4 1,350.0 80.3 40.3 581.8 1,272.6 316.0 13.0 266.4 89.3 17.8 Nov. 29 .4 1,350.0 66.1 37.8 585.9 1,286.0 305.0 18.4 266.4 82.2 18.0 Dec. 27 .4 1,375.0 19.2 29.2 384.0 1,357.7 313.5 15.4 .4 85.0 18.1 1951—Jan. 31 .4 4 1,350.0 69.4 19.7 329.2 1,282.0 297.9 13.0 2.4 86.7 18.3 Feb. 28 .4 1,350.0 62.0 16.1 345.7 1,289.0 293.0 13.0 9.3 90.1 18.5 Mar 28 . .4 L,350.0 31.3 12.3 395.1 1,320.1 302.4 13.8 14.6 89.3 18.5 Apr. 25 . . .4 1,350.0 37.3 6.4 388.4 1,313.8 305.8 14.2 5.4 89.0 17.8 May 30 .4 1,350.0 19.2 2.8 405.0 1,331.6 296.4 14.4 13.4 84.8 18.0 June 27 .4 4 1,400 0 51 8 7.9 360 0 .349 3 290.1 20.4 4.4 86.6 18.1 July 25 .4 1,400.0 20.1 7.7 390.8 1,380.9 294.4 14.8 2.3 88.9 18.3 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 threepence 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 25 million pounds on Jan. 10 and increased by 50 million on June 12, 1951. For details on previous changes, see BULLETIN for January 1951, p. 238; 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. 1210 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CENTRAL BANKS—Continued Assets Liabilities Dominion and provin- Bank of Canada cial government Deposits Sterling securities Other (F C ig a u n re a s d i i a n n m do il l l l i a o r n s 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 ion2 liab a i n li d ties dollars S te h r o m rt 1 - Other Ch b a a r n te k r s ed D g o m o m v e e i n n rn t io - n Other capital» 1938—Dec. 31. 185.9 28.4 144.6 40.9 5.2 175.3 200.6 16.7 3.1 9.3 1939—Dec. 30. 225.7 64.3 181.9 49.9 5.5 232.8 217.0 46.3 17.9 13.3 1940—Dec. 31. 38.4 448.4 127.3 12.4 359.9 217.7 10.9 9.5 28.5 1941—Dec. 31. 200.9 391.8 216.7 33.5 496.0 232.0 73.8 6.0 35.1 1942—Dec. 31. .5 807.2 209.2 31.3 693.6 259.9 51.6 19.1 24.0 1943—Dec. 31. .6 787.6 472.8 47.3 874.4 340.2 20.5 17.8 55.4 1944_Dec. 30. 172.3 906.9 573.9 34.3 ,036.0 401.7 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—Dec. 31. 74.1 1,781.4 227.8 42.5 ,307.4 541.7 30.7 126.9 119.2 1950—Aug. 31. 161.4 1,420.4 569.2 113.9 ,303.8 568.2 16.7 233.1 143.1 Sept. 30. 212.2 1,406.1 444.6 219.7 ,318.4 555.8 22.0 258.2 128.2 Oct. 31. 152.2 1,381.4 435.7 440.0 1,321.8 621.7 39.0 235.2 191.6 Nov. 30. 127.2 1,170.0 662.0 415.5 1,323.5 578.9 45.3 221.0 206.0 Dec. 30. 111.4 1,229.3 712.5 297.1 1,367.4 578.6 24.7 207.1 172.6 1951—Jan. 31. 117.9 1,171.0 731.5 273.7 1,294.4 537.6 68.3 204.4 189.3 Feb. 28 . 117.3 1,165.4 757.0 249.0 1,295.4 550.5 69.5 204.6 168.7 Mar. 31. 80.0 1,341.9 673.7 171.1 1,319.5 552.9 70.5 206.7 117.2 Apr. 30 . 128.8 1,327.6 722.5 168.8 1,323.0 556.1 56.9 215.1 196.6 May 31. 125.2 1,313.7 777.3 117.9 1,337.5 530.1 76.2 221.5 168.7 June 30. 116.8 1,335.2 846.3 104.1 1,351.3 590.7 75.3 220.1 165.0 July 31. 116.8 1,327.4 872.5 118.6 1,370.5 558.2 91.1 212.6 202.9 Assets Liabilities Bank of France Advances to mill ( io F n ig s u o r f e s f r i a n ncs) Gold F c o h e r a x e n i - g g e n Open Domestic bills Government8 a O ss t e h t e s r 6 ci N r ti c o o u t n l e a- Govern- Deposits' O li i a a t t n i b h e d i e s l r market5 Special Other Current Other ment ECA Other capital 1938—Dec. 29., 87,265 821 1,892 1,797 7,880 30,627 14,028 110 s061 ?5,595 2,718 1939—Dec. 28. 97,267 112 5,818 2,345 5,149 14,200 30,473 15,549 151 322 I 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 ?7,202 44,986 1941—Dec. 31.. 84,598 38 6,812 12 4,517 69,500 182,507 17,424 270,144 1 517 ?5,272 768,474 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 ,855 7,078 1945—Dec. 27. 129,817 68 17,980 303 25,548 445,447 24,734 570 006 12 048 S7 755 4,087 1946—Dec. 26. 94,817 7 37,618 3,135 76,254 67,900 480,447 33,133 721,865 765 63,468 7,213 1947—Dec. 31. 65,225 12 67,395 64 117,826 147,400 558,039 59,024 920 831 733 479 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—Dec. 29. 62,274 61,943 137,689 28,548 335,727 157,900 560,990 112,658 1,278,211 1,168 1S8,973 19,377 1950—Aug. 31. 8182,785 144,242 149,702 3,590 362,358 163,600 481,039 137,978 1,455,008 75 12,778 134,709 22,722 Sept. 28. 182,785 173,725 119,556 14,572 377,531 163,900 481,039 132,972 1,467,425 94 11,928 144,909 21,725 Oct. 26. 182,785 140,735 115,122 25,035 371,010 162,600 481,039 197,555 1,466,623 73 8,739 171,836 28,610 Nov. 30. 182,785 146,783 150,674 32,047 297,884 155,900 481,039 222,277 L ,502,770 83 7,613 137,038 21,885 Dec. 28. 182,785 162,017 136,947 34,081 393,054 158,900 481,039 212,822 1,560,561 70 15,058 161,720 24,234 1951—Jan. 25. 182,785 172,719 131,554 35,907 373,922 159,800 481,039 197,815 1,535,688 74 16,772 154,980 28,027 Feb. 22. 182,785 185,735 122,549 32,158 383,170 159,000 481,039 213,535 1,541,910 18 30,205 160,976 26,864 Mar. 29. 182,785 193,622 133,959 29,194 389,147 154,800 481,039 223,295 1,576,231 75 39,588 149,431 22,516 Apr. 26. 191,447 173,566 141,921 23,821 427,135 159,700 481,039 235,063 1,597,678 98 46,941 16C,530 28,444 May 31. 191,447 169,035 215,539 17,539 341,766 158,700 481,039 259,474 1,632,018 S3 17,636 160,143 24,658 June 28. 191,447 161,802 196,435 12,164 458,572 157,600 481,039 235,037 1,660,842 66 16,432 190,056 26,701 July 26. 191,447 154,610 232,873 5,967 454,608 145,800 481,039 9250,441 1,699,190 74 19,703 166,020 31,798 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. i 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). 5 For explanation of these items, see BULLETIN for January 1950, p. 117, footnote 6. 6 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 Reichskreditkassen: 1940, 41,400; 1941, 64,580; 1942, 16,857; 1943, 10,724. 8 On Aug. 16, 1950, gold reserve revalued on the basis of 393,396.50 francs per kilogram of fine gold compared with the former rate of 134,027.90 francs, which had been in effect since Dec. 26, 1945. For details on devaluations and other changes in the gold holdings of the Bank of France, see BULLETIN for September 1950, pp. 1132 and 1261; 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 155.4 billion francs on July 26. 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. SEPTEMBER 1951 1211 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CENTRAL BANKS—Continued Central Bank 1951 1950 Central Bank 1951 1950 (Figures as of last report (Figures as of last report date of month) July June May July date of month) July June May July Central Bank of the Argentine Bank of the Republic of Colom- Republic (millions of pesos): bia—Cont. Gold reported separately 874 874 656 Loans and discounts 259,060 227,835 228,700 Other gold and foreign exchange. ,389 2,467 1,508 Government loans and securities. 135,872134,775 146,131 Government securities ,993 1,974 1,858 Other assets 79,613 83,256 58,362 Rediscounts and loans to banks.. ,115 36,893 30,645 Note circulation 423,992392,815 458,746 Other assets 282 273 278 Deposits 197,792232,465 177,626 Currency circulation ,567 14,264 10,845 Other liabilities and capital 66,608 56,296 46,698 Deposits—Nationalized ,887 24,954 21,592Central Bank of Costa Rica Other sight obligations 565 766 477 (thousands of colones): Other liabilities and capital ,634 2,497 2,032 Gold ,511- ,511 11,511 11,511 Commonwealth Bank of Aus- Foreign exchange ,476 ,456 12,866 39,659 tralia (thousands of pounds): Net claim on Int'l. Fund 8 ,088 ,188 7,029 7,019 Gold and foreign exchange 719, 707,783 538,423 Loans and discounts ,166 ,419 89,839 81,804 Checks and bills of other banks. . 7, 11,091 4,115 Securities 219 ,285 10,621 20,726 Securities (incl. Government and Other assets ,838 ,783 16,673 16,874 Treasury bills) 363, 361,301 312,277 Note circulation ,701 ,376103,777 102,081 Other assets 82, 98,992 56,131 Demand deposits ,311 ,316 32,909 66,241 Note circulation 275, 270 270,270 233,020 Other liabilities and capital ,286 ,950 11,853 9,271 Deposits of Trading Banks: National Bank of Cuba Special 559, 320 586,420 431,670 (thousands of pesos): Other 28, 318 34,035 28,319 Gold 270,562 '298,719 Other liabilities and capital 310, 322288,442 217,936 Foreign exchange (net) 96,033 '60,632 Austrian National Bank (millions Foreign exchange (Stabilization of schillings): Fund) 96,684 43,151 Gold 51 51 51 50 Silver 40,988 79,998 Foreign exchange 252 310 288 188 Net claim on Int'l. Fund « 12,507 12,507 Loans and discounts 4,918 ,720 4,348 2,436 Loans and discounts 1,879 1,003 Claim against Government 4,524 ,444 4,445 6,133 Credits to Government 11,845 '207 Other assets 37 38 39 36 Other assets 30,971 14,981 Note circulation 6,796 ,598 6,406 5,857 Note circulation 374,674 375,033 Deposits—Banks 171 192 150 237 Deposits 180,152 126,384 Other 577 612 551 993 Other liabilities and capital 6,643 9,780 Blocked 2,238 ,162 2,064 1,757National Bank of Czechoslovakia4 National Bank of Belgium National Bank of Denmark (millions of francs): (millions of kroner): Gold* 29,742 307 29,433 28,506 Gold 69 69 69 69 Foreign claims and balances (net). 12,580 768 8,318 7,795 Foreign exchange 425 406 435 357 Loans and discounts 9,334 901 11,151 5,280 Contributions to Int'l. Bank 8 8 6 6 Consolidated Government debt.. 34,860 860 34,860 34,939 Loans and discounts 112 108 94 38 Government securities 3,757 214 3,603 9,247 Securities 131 143 148 122 Other assets 3,112 795 3,869 5,727 Govt. compensation account.... ,942 3,942 3,966 4,022 Note circulation 88,822 814 86,781 87,542 Other assets 539 526 461 273 Deposits—Demand 1,546 413 2,005 1,641 Note circulation ,569 1,620 1,593 1,529 ECA 570 268 140 41 Deposits—Government ,802 1,774 1,769 1,304 Other liabilities and capital 2,446 349 2,307 2,271 Other ,670 1,620 1,632 1,904 Central Bank of Bolivia—Mone- (Mar. Other liabilities and capital 185 188 184 152 tary dept. (millions of bolivianos): 1951)* Central Bank of the Dominican Gold at home and abroad a 1,370 1,370 Republic (thousands of dollars): Foreign exchange (net): 589 370 Gold 056 8,056 6,056 4,045 Loans and discounts 1,939 1,535 Foreign exchange (net) ,177 18,499 18,487 13,927 Government securities 730 737 Net claim on Int'l. Fund » ,250 1,250 1,250 1,250 Other assets 139 125 Paid-in capital—Int'l. Bank 40 40 40 40 Note circulation 3,515 2,803 Loans and discounts 212 107 78 103 Deposits 326 529 Government securities 217 6,217 6,217 5,383 Other liabilities and capital 925 805 Other assets 992 968 1,081 1,556 Central Bank of Ceylon (thousands Note circulation ,226 26,133 25,290 20,658 of rupees): Demand deposits ,918 8,247 7,173 5,348 Foreign exchange 677, 105 649,888 679,132 Other liabilities and capital 801 758 747 298 Paid-in capital—Int'l. Bank 1,116 116 1,116 Central Bank of Ecuador Government securities 2,706 68 (thousands of sucres): Other assets 1,628 245 852 Gold 6 334 993334, 334,511 261,538 Currency in circulation 397,245 389 281400,308 Foreign exchange (net) * 69 110 82, 143,577 7,455 Deposits—Government 90,625 979 62,015 Net claim on Int'l. Fund * 18 757 18, 18,757 16,881 Banks 162,081 199187,824 Credits—Government 188 362225, 214,156 242,394 Other liabilities and capital 32,604 858 30,952 Other 171 057148. 123,530 142,131 Central Bank of Chile (millions Other assets 181 855180. 174,547 149,205 of pesos): Note circulation 488 385485. 480,678 420,057 Gold 1,314 ,346 1,475 1,240 Demand deposits—Private banks 136 423134 140,231 126,387 Foreign exchange (net) 198 180 349 112 Other 107 554123 128,305 100,039 Net claim on Int'l. Fund 8 107 107 1 1 Other liabilities and capital 231 772247, 259,864 173,120 Discounts for member banks.... 1,695 931 1,013 1,938National Bank of Egypt6 (thou- Loans to Government 675 675 680 686 sands of pounds): Other loans and discounts 5,304 309 5,457 2,644 Gold7 60, 49,771 43,321 6,376 Other assets 2,332 ,437 2,432 1,745 Foreign exchange8 46,010 48,113 51,926 '54,824 Note circulation 7,359 469 7,359 5,729 Foreign and Egyptian Deposits—Bank 1,497 550 1,693 1,347 Government securities 309,905 315,460 328,748 295,857 Other 846 064 410 232 Loans and discounts 5, 7,950 12,426 5,470 Other liabilities and capital 1,924 902 1,945 1,058 Other assets 2. 2,308 2,094 '2,156 Bank of the Republic of Colombia Note circulation 160, 170,820 173,464 144,580 (thousands of pesos): Deposits—Government 85, 88,544112,506 69,467 Gold and foreign exchange 188.096 209,960 224,139 Other 156, 143,050131,199 140,325 Net claim on Int'l. Fund 8 24, 24,369 24,368 Other liabilities and capital 22, 21,188 21,347 10,310 Paid-in capital—Int'l. Bank 1 1,381 1,372 r Revised. * Latest month available. 1 On Aug. 17, 1950, gold reserve revalued from .0202765 to .0177734 grams of fine gold per franc. 2 It is understood that, beginning June 1950, gold reserves have been revalued at a rate of 60 bolivianos per dollar. 8 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. 4 For last available report (March 1950), see BULLETIN for September 1950, p. 1262. 6 In December 1950, gold and foreign exchange holdings revalued from 13.50 to 15.00 sucres per dollar. 6 The National Bank of Egypt became the central bank on Apr. 5, 1951. 7 Beginning December 1950, includes gold in Banking Department, formerly shown under "Other Assets"; in April 1951, gold previously held in Issue Department revalued from 7.4375 grams of fine gold to 2.55187 grams of fine gold per Egyptian pound. 8 Revised to include foreign exchange and, from June to November 1950, gold, in Banking Department, formerly shown under "Other assets." NOTE.—For details relating to individual items in certain bank statements, see BULLETIN for January 1951, p. 112; and January 1950, p. 118. 1212 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CENTRAL BANKS—Continued Central Bank 1951 1950 Central Bank 1951 1950 (Figures as of last report (Figures as of last report date of month) July June May July date of month) July June May July Central Reserve Bank of El Salva- Bank of Italy (billions of lire): dor (thousands of colones): Gold 4 4 4 4 Gold 64 610 64 689 57 249 50 329 32 30 90 27 Foreign exchange (net) 75 364 89 806 91 789 64, 11 S Advances to Treasury 590 SQO SQO 590 Net claim on Int'l Fund * 1 S6S 1 56S 1 S6S 1 56 S Loans and discounts 261 703 773 190 Loans and discounts 9 785 789 018 1 S48 Government securities 205 906 91S 188 Government debt and securities. . 5 602 s 636 4 006 5 000 Other assets 603 513 600 Other assets 1 406 1 410 1 983 1 469 Bank of Italv notes 1 066 1,025 Note circulation 75 803 77 080 78 453 64 4 55 Allied military notes > 1,121! 1 »089 9 3 Deposits 68 918 73 341 72 761 53 221 159 181 176 117 Other liabilities and capital 6 610 6 4S0 6 406 6 343 Demand 82 74 67 142 State Bank of Ethiopia 2 Other 269 753 757 256 Bank of Finland (millions of mark- Other liabilities and capital 64 66 60 55 kaa): Bank of Japan (millions of yen): Gold 4 475 4 47S 2 930 Cash and bullion 1 08? 1 0^4 1,450 Foreign assets (net) 1 901 800 — 806 Advances to Government 49 64 S 49 64 S 108,226 Clearings (net) — 1 644 -347 190 Loans and discounts 407, OSS384 730 118,292 Loans and discounts 42 396 40 98S 40 79S Government securities 79 177 77 736 121,450 Securities 070 069 1 080 Other assets 37 080 37 007 32,952 Other assets 7 480 6 SS1 1 9 SO Note circulation 407 704 300 339 319,809 Note circulation 39 670 OSS 32 734 Der)osits5 Government 79 011 ss 974 30,911 Deposits 9 806 1 648 2 533 Other 90 01S 93 380 18,601 Other liabilities and capital 949 114 9 490 Other liabilities 18 917 16 148 13,048 Bank of German States The Java Bank (millions of guilders): (millions of German marks): Gold 5 871 871 871 677 Foreign exchange 2 098 1 799 1 678 1 372 Foreign exchange (net) 730 612 621 75 Loans and discounts 4 194 4 446 4 370 3 107 Leans and discounts 493 514 476 141 Loans to Government 0 556 0 Q 394 9 083 Advances to Government 1,723 1 839 1 QQO 1,931 Other assets 1 470 461 1 491 1 009 656 SS4 S9Q 85 Note circulation 8 384 8 189 7 867 8 101 Note circulation 2,947 9 800 9 770 1,827 Deposits—Government. . 2 593 2 292 2 430 2 502 DeDosits 830 880 978 666 Banks 1 846 1 839 1 813 1 036 Other liabilities and capital 695 694 696 415 Other 1 286 1 344 1 315 538 Bank of Mexico (millions of pesos): Other liabilities and capital 3 210 3 294 3 368 2 566 Monetary reserve 6 1,060 1 053 1 093 821 Bank of Greece (billions of drach- "Authorized" holdings of secumae): rities, etc 2,715 7 764 7 935 2,544 Gold and foreign exchange (net) 3760 409 360 Bills and discounts 461 370 356 184 Loans and discounts 180 10S 170 Other assets 493 510 490 345 Advances—Government 6 717 ^ 003 4 49 S Note circulation 2,797 7 766 7 737 2,317 Other 3 510 933 2 387 Demand liabilities 1,443 1 446 1 639 968 Other assets 9 535 1 470 015 Other liabilities and capital 489 403 507 609 Note circulation 1 700 1 701 1 676 Netherlands Bank (millions of Deposits—Government 885 074 814 guilders): Reconstruction and Gold 7 1,177 1 177 1 177 871 relief accts 4 459 4 104 2 934 Silver (including subsidiary coin). 17 17 17 14 Other 2 266 1 004 809 Foreign assets (net) 41 177 154 1,197 Other liabilities and capital 3 4397 2 690 2 651 Loans and discounts 503 100 170 202 Bank of Guatemala (thousands of Govt debt and securities 3,262 3 260 3 178 2,850 quetzales): Other assets 644 615 591 894 Gold 27 229 27 229 27 229 27 99Q Note circulation—Old 48 40 SO 61 Foreign exchange 12,142 13496 14,300 6 928 New 2,806 2 693 2 709 2,904 Gold contribution to Int'l Fund.. 1,250 1 250 1,250 1 250 414 Rediscounts and advances 6 952 5 331 4 982 4 690 Blocked 2 Other assets . . 17 629 17 241 19 18 070 ECA 1,626 1 549 1 470 914 Circulation—Notes 36 2 56 37 110 36 019 34 9S9 Other 677 644 656 1,143 Coin 3,268 3 314 3,295 3,137 Other liabilities and capital 487 454 401 589 Deposits—Government. 2,818 2 318 2,179 1,887 Reserve Bank of New Zealand Banks 10 949 11 180 10 S06 9 514 (thousands of pounds): Other liabilities and capital 11,909 10,615 14,304 9,325 Gold 5,203 5 157 5 071 4,323 National Bank of Hungary 4 Foreign exchange reserve 78,943 78 539 73,971 57,882 Reserve Bank of India (millions of Loans and discounts 6,235 6 495 6,832 5,462 rupees): Advances to State or State un- Issue department: dertakings . . . 51,929 54 033 56 537 56,483 Gold at home and abroad . . . 400 400 400 Investments 11,974 7,974 10,974 22,658 Sterling securities 6 782 089 5 089 Other assets 3,510 4,199 4,653 >-4,324 Indian Govt. securities 5 166 5 166 4 666 Note circulation . 60,624 50 804 58,413 54,722 Rupee coin 575 579 S7S Demand deposits 90,769 00,075 92,403 90,322 Note circulation 12 57S 19 ,863 11 394 Other liabilities and capital 6,401 6,518 7,222 6,089 Banking department: Bank of Norway (millions of kroner): Notes of issue department 348 957 9Q0 Gold . ... 243 743 7.43 244 Balances abroad 1 70S 1,764 2 1Q0 Foreign assets (net) 187 137 284 r128 Bills discounted 21 36 94 Clearing accounts (net) —9 13 —12 -49 Loans to Government 75 72 23 Loans and discounts 49 59 58 34 Other assets 1 179 1 161 661 Securities 46 46 46 47 Deposits 008 9 047 2 018 Occupation account (net) 6,202 6,202 6,202 7,112 Other liabilities and capital 318 34 3 9 80 121 130 142 84 Central Bank of Ireland (thousands Note circulation ... 2,431 2,376 2,293 2,295 of pounds) * Deposits—Government 1,754 1,865 2,073 '1,750 Gold 9 646 9 646 9 646 2 646 Banks 1,116 1,044 976 1,406 Sterling funds 49 886 49 469 49 351 47 396 Blocked 543 Note circulation 52 532 52 115 007 49 079 ECA 769 747 706 908 Other liabilities and capital.... 770 777 915 '700 r Revised. xThis 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 For last available report (July 1950), see BULLETIN for December 1950, p. 1699. 3 Effective June 1, 1951, figures reflect the change in the official exchange parities of the drachma resulting from abolition of exchange certificate system. 4 For last available report (February 1950), see BULLETIN for Septem ber 1950, p. 1263. 5 Gold revalued on Jan. 18, 1950, from .334987 to .233861 grams of fi ne gold per guilder. 6 Includes gold, silver, and foreign exchange forming required reserve (25 per cent) against notes and other demand liabilities. 7 Gold revalued on Sept. 19, 1949, from .334987 to .233861 grams of fine gold per guilder. NOTE.—For details relating to individual items in certain bank statements, see BULLETIN for January 1951, p. 113. 1213 SEPTEMBER 1951 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CENTRAL BANKS—Continued Central Bank 1951 1950 Central Bank 1951 1950 (Figures as of last report (Figures as of last report date of month) July June May July date of month) July June May July State Bank of Pakistan (millions of Bank of Spain—Cont. ru pees): Other assets 94 01 S 91 808 18, 38S Issue department: Note circulation 30,987 30,711 28,319 Gold at homeland abroad... 44 44 44 Deposits—Government... 1,131 864 638 Sterling securities 8S9 8S9 6S9 Other 3 461 3 779 3,09^ Pakistan Govt. securities. . . 603 653 519 Other liabilities and capital 20,607 18,471 14,363 Govt. of India securities 138 138 141 Bank of Sweden (millions of kronor): India currency 300 300 300 Gold 9 84 984 98S 1 S7 Rupee coin 43 43 58 Foreign assets (net) 677 504 279 1,080 Notes in circulation 1,924 1,975 1,680 Swedish Govt. securities and ad- Banking department: vances to National Debt Office5 3,526 3,718 3,778 2,675 Notes of issue department, , 55 53 34 Other domestic bills and advances 242 249 241 136 Balances abroad 616 641 325 Other assets 511 508 514 318 Bills discounted 99 99 109 Note circulation 3 489 3 S30 3 407 3 10S Loans to Government 4 1 Demand deposits—Government.. 636 605 688 432 Other assets 374 396 400 Other S97 S30 499 183 Deposits 1,029 1,025 763 Other liabilities and capital 594 597 580 645 Other liabilities and capital.. 119 95 99 Swiss National Bank (millions of Bank of Paraguay—Monetary dept. francs): (thousands of guaranies): Gold 6 014 6 001 6 031 6 900 Goldl . 1,165 1,165 1,165 600 Foreign exchange 188 209 230 308 Foreign exchange (net) 115 105,315 82,300 7,532 Loans and discounts 141 190 194 104 Net claim on Int'l. Fund * S S 9S6 377 2 710 Other assets 79 76 78 79 Paid-in capital—Int'l. Bank -1 ,001 -1 ,001 -1 ,001 -195 Note circulation 4,469 4,468 4 398 4 282 Loans and discounts 148 515 141,34S 139 873 124 689 Other sight liabilities 1 7S3 1 810 1 937 2 903 Government loans and securities. 16,617 16,623 24,256 5,870 • Other liabilities and capital 199 198 198 199 Other assets S9,369 39,907 90,259 26,131 Central Bank of the Republic of Note and coin issue 186 783 179 793 173 89 3 122 673 Turkey (millions of pounds): Demand deposits . 86,726 60,554 58,168 37,710 Gold 419 419 387 Other liabilities and capital 64,701 61,261 32,484 6,946 Foreign exchange and foreign Central Reserve Bank of Peru clearings 170 149 106 (millions of soles): Loans and discounts .... 1,284 1 173 1 120 Gold and foreign exchange 3 6S1 703 699 337 1S 1S 97 Net claim on Int'l. Fund 2 90 90 ?0 90 Other assets OS 84 114 Contribution to Int'l. Bank 2 2 2 2 Note circulation • 986 962 877 Loans and discounts to banks. . . 971 180 ?07 193 Deposits—Gold 1S3 1S3 1 S3 Loans to Government 701 712 666 70S Other S03 S68 S79 Other assets 127 96 126 9S8 Other liabilities and capital ?S1 1S8 1 S9 Note circulation 1,228 1,186 1,159 986 Bank of the Republic of Uruguay Deposits 352 371 371 155 (thousands of pesos): Other liabilities and capital 192 156 190 37S Gold 444 338 297 36S Central Bank of the Philippines Silver 10 648 11 608 (thousands of pesos): Paid-in capital—Int'l. Bank 318 313 Gold 11 067 10 937 9 787 5 108 Advances to State and govern- Foreign exchange 523,146 533,970 551,540 434 221 ment bodies 147 526 145 788 Net claim on Int'l. Fund * 29,504 29,504 29,504 7 502 Other loans and discounts 276 223 264 811 Loans 90,609 19 609 18 64 S 68 694 Other assets 399 604 273 8S8 Domestic securities 231,760 234,536 234,959 132 337 Note circulation ... . 364 304 301 534 Other assets 18S,879 180,316 174 400 147 869 Deposits—Government 103 879 97 076 Note circulation 611,406 634,443 656,523 545 125 Other 317 395 281 408 Demand deposits 910,170 909,970 903,478 140 123 Other liabilities and capital 416 160 313 796 Other liabilities and capital 189,388 170,759 158,833 110 406 Central Bank of Venezuela (mil- Bank of Portugal (millions of lions of bolivares): escudos) * Gold 1 141 1 141 1 141 1 041 Gold 3,848 3,823 3 139 Foreign exchange (net) -94 -42 -47 16 Foreign exchange (net) 10,781 10,654 8 931 Other assets 129 119 117 73 Loans and discounts 527 574 S19 Note circulation 730 730 744 790 Advances to Government 1,249 1,247 1 241 Deposits 171 140 170 172 Other assets 541 560 528 Other liabilities and capital 276 348 296 228 Note circulation . 8,224 8,256 7 659 Bank for International Settle- Demand deposits—Government.. 752 810 362 ments (thousands of Swiss gold EC A. 164 264 349 francs): Other S 560 s,263 3 604 Gold in bars 47S 8S3 469 499 468 409 391 061 Other liabilities and capital 9,245 9,264 2 376 Cash on hand and with banks . S7 047 S6 S48 36 439 28 833 South African Reserve Bank Sight funds at interest 4 393 4 391 4,405 2 902 (thousands of pounds): Rediscountable bills and accept- Gold * ... 74,243 74,371 63 S76 ances (at cost) .... 39 380 08 83S 114 991 150, S43 Foreign bills 80,043 93,283 75 378 Time funds at interest 31 023 33, 459 35,254 37,910 Other bills and loans 4,880 S,423 5 984 Sundry bills and investments 334 19S 970 650 96S 084 283,997 Other assets 28,840 25,366 31 257 Funds invested in Germany 297 201 297 201 297,201 297,201 Note circulation 78,482 77,561 69 776 Other assets 1 393 1 803 9 666 1,416 Deposits 91 ,846 103 069 90 909 Demand deposits (gold) 304 986 947 389 98 193 250, S33 Other liabilities and capital 17,679 17,821 15 518 Short-term deposits: Bank of Spain (millions of pesetas): Central banks—Own account.. 505 345 475, 752 619,981 434, 092 Gold 669 664 668 Other 37 810 17 418 18 874 20,614 Silver 378 378 446 Long-term deposits: Special 228 909 228 909 228,909 228,909 Government loans and securities. 15,865 15 750 15 743 Other liabilities and capital 264 135 265 849 265,639 259,644 Other loans and discounts 15,266 15 127 11 173 1 As of Mar. 5, 1951, gold revalued from .287595 to .148112 grams of fine gold per guarani. 2 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. 3 In November 1949, part of the gold and foreign exchange holdings of the bank were revalued. 4 On Dec. 31, 1949, gold revalued from 172 to 248 shillings per fine ounce. 5 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. 1214 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MONEY RATES IN FOREIGN COUNTRIES DISCOUNT RATES OF CENTRAL BANKS [Per cent per annum] Central bank of— ef D fe a ct t i e ve U K d n i o i n m t g e - d France Ger- g B t 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 t o r f a — l R Ju 3 a 1 l t y e ef D fec a t t i e ve ba C n e k n t o r f a — l R Ju 3 a 1 l t y e ef D fe a ct t i e ve In effect Dec. 31, Albania Mar. 21, 1940 Italy 4 Apr. 6, 1950 1939 Argentina.. Mar. 1, 1936 Japan 5.11 July 5, 1948 Jan. 25, 1940. . Austria.... Aug. 3, 1945 Java 3 Jan. 14, 1937 Apr. 9 3J4 Belgium.. . July 5, 1951 Latvia 5 Feb. 17, 1940 May 17 3*4 Bolivia Sept. 30, 1950 Lithuania. . . 6 July 15, 1939 Mar. 17, 1941.. May 29 3 June 27 Jan. 16, 1945. . Canada.... Oct. 17, 1950 Mexico June 4, 1942 Jan. 20 Chile June 13, 1935 Netherlands.. Apr. 17, 1951 Feb. 9 Colombia. . July 18, 1933 New Zealand July 26, 1941 Nov. 7, 1946.. Costa Rica. Feb. 1, 1950 Norway Jan. 9, 1946 Dec. 19 Jan. 10, 1947. . &2M Aug. 27 Denmark 5 Nov. 2, 1950 Peru Nov. 13, 1947 Oct. 9 Ecuador 10 May 13, 1948 Portugal Jan. 12, 1944 June 28, 1948.. El Salvador. .. 3 Mar. 22, 1950 South Africa. Oct. 13, 1949 Sept. 6 Estonia Oct. 1, 1935 Spain Mar. 18, 1949 Oct. 1 Finland Nov. 3, 1950 Sweden Dec. 1, 1950 May 27, 1949.. July 14 Oct. 6 June 8, 1950.. France. June 8, 1950 Switzerland.. Nov. 26, 1936 Sept. 11 Germany. Oct. 27, 1950 Turkey Feb. 26, 1951 Sept. 26 Greece 12 July 12, 1948 United King- Oct. 27 India 3 Nov. 28, 1935 dom Oct. 26, 1939 Dec. 1 Ireland. . . Nov. 23, 1943 U. S. S. R.... July 1, 1936 Apr. 17, 1951. . July 5,1951.. 334 Inef.'ect July 31, i The lower rate applies to the Bank deutscher Laender, and the higher 1951 rate applies to the Land Central banks. NOTE.—Changes since July 31: None. OPEN-MARKET RATES [Per cent per annum] Canada United Kingdom France Netherlands Sweden Sw la it n z d er- Month Treasury Bankers' Treasury Day-to- Bankers' Day-to- Treasury 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 1^942—June .54 1.03 1.00 1.00 1.58 3-534 1.25 1*943—June .50 1.03 1.00 06 1.67 3-5*4 1.25 1944—June .39 1.03 1.00 .13 1.58 3-534 1.25 1945—June .36 1.03 1.00 .13 .74 2 3^-5 1.25 1946—June .39 .53 .50 .63 1.32 .42 1.00 2^-434 1.25 1947—June .41 .53 .51 .63 1.45 .46 .86 2^-434 .25 1948—June .41 .56 .51 .63 2.02 .36 .84 234-434 .50 1 1 9 9 5 4 0 9 — —J J u u n n e e . . 5 5 1 1 . . 6 6 3 9 . .5 5 2 1 . . 6 6 3 3 P 2 2 . . 5 4 2 6 . . 3 4 2 4 . . 8 8 1 3 2 23 3 4 4 - - 4 4 3 y 4 2 . . 5 5 2 0 1950—July .51 .69 .51 .63 2.59 .57 1.10 3 .50 August. . . .55 .69 .51 .63 2.35 .44 .95 .50 September .62 .69 .52 .63 2.22 .33 .91 .50 October... .62 .69 .51 .63 2.28 .27 .88 34-43 .50 November .62 .69 .51 .63 2.19 .20 .88 34-43 .50 December. .63 .69 .51 .63 2.41 .40 1.09 3-5 .50 1951—January. . .63 .69 .51 .63 .45 .31 .83 3-5 1.50 February. .73 .69 .51 .63 .42 .55 1.00 3-5 1.50 March ,76 .69 .51 .63 .46 1.23 3-5 1.50 April .76 .69 .51 .63 2.60 .55 1.24 3-5 1.50 May .76 .69 .51 .63 2.61 .50 1.07 3-5 1.50 June .75 .69 .51 .63 2.52 1.39 1.00 3-5 1.50 P Preliminary. NOTE.—For monthly figures on money rates in these and other foreign countries through 1941, see Banking and Monetary Statistics, Table 172, pp. 656-661, and for description of statistics see pp. 571-572 in same publication. 1215 SEPTEMBER 1951 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

COMMERCIAL BANKS Assets Liabilities United Kingdom * ( b m 1 a 1 i n ll L k io s o s . n n t e s d r o F l o i n f i n g g p c u ) l o r e e u a s n r i d i 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 i e 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 e to rs a O s 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 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 1,427 994 505 5,685 3,823 1,862 342 1947—December. 502 480 793 1,288 ,483 1,219 567 5,935 3,962 1,972 396 1948—December. 502 485 741 1,397 ,478 1,396 621 6,200 4,159 2,041 420 1949—December. 532 571 1,109 793 ,512 1,534 579 6,202 4,161 2,041 427 1950—July 501 557 1,400 321 ,496 1,591 529 5,956 3,935 2,021 440 August. . . 504 544 1,336 368 ,499 1,610 554 5,968 3,941 2,027 447 September 492 543 1,358 435 ,501 1,610 557 6,028 3,969 2,059 468 October... 509 557 1,414 496 ,505 1,608 616 6,204 4,105 2,099 501 November 502 548 1,445 478 ,514 1,625 660 6,251 4,109 2,142 522 December 540 592 1,408 456 ,528 1,660 735 6,368 4,262 2,106 550 1951—January.. 530 559 1,470 383 1,529 1,656 697 6,260 4,181 2,078 564 February. 496 531 1,343 291 1,544 1,714 719 6,041 3,994 2,047 596 March.... 489 537 1,313 234 1,552 1,766 770 6,037 3,987 2,049 625 April 520 559 1,300 295 1,554 1,775 760 6,130 4,055 2,075 632 May 504 571 1,226 269 1,556 1,806 854 6,149 4,063 2,086 636 June 501 594 1,172 290 1,550 1,895 797 6,167 4,099 2,068 633 Assets Liabilities Canada E (1 n C 0 d a i c n n o h a f a m d m r i i t a l e o n l r i n o e t d d n h o s b l f o l a i a f g n r u s 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 t C y ana d lo d i O a s a c n t o s h u e a n r n t d s d S a a f u n b e o l b e o d c a r r e a u n o f i n r k r g n a i o s s d n t e m y t Securities O as t s h e e t r s ci N r ti c o o u t n l e a- e D T x e o c p t lu a o l d 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 p T n o i a m s d i e t a s l c a O a b a t p i n h l i i d e t t a i r e l s 1945—December. 694 251 1,274 227 4,038 869 26 5,941 3,076 2,865 ,386 1946—December. 753 136 1,507 132 4,232 ,039 21 6,252 2,783 3,469 ,525 1947—December. 731 105 1,999 106 3,874 ,159 18 6,412 2,671 3,740 ,544 1948—December. 749 101 2,148 144 4,268 ,169 16 7,027 2,970 4,057 ,537 1949—December. 765 133 2,271 146 4,345 .058 14 7,227 2,794 4,433 ,477 1950—July 767 94 2,385 222 4,240 .089 7,288 2,759 4,529 ,508 August. . . 802 99 2,393 218 4,478 ,113 7,573 3,030 4.543 ,529 September 748 101 2,473 225 4,437 .178 7,597 3,015 4,582 ,565 October... 847 115 2.565 189 4,349 .258 7,740 3.180 4,559 ,583 November 797 164 2,737 177 4,280 ,293 7,819 3,276 4,543 ,630 December. 824 134 2,776 171 4,286 ,304 7,828 3,270 4,558 ,667 1951—January. . 774 118 2,795 175 4,248 1,270 7,748 3,171 4,577 ,631 February. 770 109 2.872 176 4,093 1.334 7.675 3.057 4.618 ,678 March 753 94 3,008 178 3.986 1,266 7,624 3,010 4,614 ,660 April 774 87 3,046 160 3,924 1,413 7,684 3,086 4,598 ,720 May 760 92 3 .066 188 3.886 1.379 7,686 3.097 4.589 ,684 June 781 82 3,061 206 3,838 1,288 7,591 3,032 4,559 1,664 Assets Liabilities France (4 o m f l i a m l r l g i o o e n n t s b h a o n f f i k g f s u r . r a e n s c E s i ) n nd re C se a r s v h es Du b e a n f k ro s m B c i o ll u s n t d e i d s- Loans O as t s h e e t r s Deposits a a c O n c w c e e p n s t- lia O b a t i n h l d i e ti r es Total Demand Time capital 1945—December. . 14,733 14,128 155,472 36,621 4,783 215,615 213,592 2,023 2,904 7,218 1946—December. . 18,007 18,940 195,223 65.170 17,445 291,945 290,055 1,890 15,694 7,145 1947—December. . 22,590 19.378 219,386 86,875 27,409 341,547 338,090 3,457 25,175 8,916 1948—December. . 45,397 35.633 354.245 126,246 34,030 552.221 545,538 6.683 30,638 12,691 1949—December. . 40,937 42,311 426,690 129,501 29,843 627.266 619,204 8,062 26,355 15,662 1950—June 41,283 43.618 442.411 133,848 48,126 648,191 633,952 14,240 32,030 29,065 July 47,231 43,599 433,118 141.239 46,610 647,507 636,010 11,497 31,492 32,798 August 41,572 51,670 440,122 135.192 46,982 650,559 638.875 11,684 29,971 35,008 September. 42,893 48,797 484,136 131,192 48,609 687.444 674,592 12,853 30,682 37,502 October. . . 39,519 50,793 484,658 136,334 49,077 689,545 674,169 15,376 29,208 41,628 November. 38,030 52,709 460,639 146,408 49,479 676.636 660.106 16,530 27,555 43,073 December. . 48,131 52,933 527.525 135.289 31.614 749.928 731.310 18,618 28,248 17,316 1951—January.. 39,769 56.952 477,003 153,502 31,549 709,469 691,231 18,238 26,599 22.707 February. 41,435 60,293 477,766 154,660 33,367 720,710 701,935 18.775 27,252 19,560 March. . . 42,469 62,610 499,550 150,919 38,351 741,484 721,791 19,693 29,739 22,676 April 47,530 65,445 490,676 160,293 41,237 748,810 728,559 20,252 30.678 25,702 May 48,809 63,440 475,054 166,984 46,169 739,071 719,405 19,666 33,354 28,033 1 From September 1939 through November 1946, this table represents aggregates of figures reported by individual banks for days, varying from bank to bank, toward the end of the month. After November 1946, figures for all banks are compiled on the third Wednesday of each month, except in June and December, when the statements give end-of-month data. 2 Represent six-month loans to the Treasury at \y% per cent through Oct. 20, 1945, and at Y% 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. 1216 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 1 Belgium Brazil Canada (peso) (franc) (cruzeiro) British (dollar) Aus- Malay- /ear or month Basic P e r n e t f i e a r l - Free ( t p r o a u l n ia d) n "B ot a e n s k " Official Free (d s o ia ll a 5 r) Official Free account 1946 29 773 321.34 2.2829 6 0602 95.198 93.288 1947 29.773 321.00 2.2817 5.4403 100.000 91.999 1948 29 773 321.22 2.2816 5.4406 100.000 91.691 1949 29 774 293 80 2.2009 2.1407 5 4406 42 973 97 491 92 881 1950 26.571 * 13.333 3 8.289 223.15 1.9908 41.9722 5.4406 32 788 690.909 91.474 1950—September .... 20 000 13 333 7.205 223.16 1.9838 5.4406 32 825 90.909 90.844 October 20 000 13 333 7 291 223 16 1 9876 <1 9702 5 4406 32 838 94 854 November 20 000 13 333 7 147 223 16 1 9876 1.9737 5 4406 32 850 96 044 December 20.000 13.333 6.924 223.10 1.9983 1.9720 5.4406 32.850 94.913 1951—January......... 20 000 13 333 7 102 223 09 1.9945 1.9549 5 4406 32 850 95 002 February 20.000 13.333 7.138 223.16 1.9883 1.9774 5.4406 32 850 95.271 March . 20.000 13.333 7.124 223.16 1.9843 1.9306 5.4406 32.850 95.420 April . . 20 000 13 333 7 143 223 16 1 9830 1 9491 5 4406 32 850 94 353 May 20 000 13.333 7.096 223,16 1.9833 1.9501 5.4406 32 850 93.998 Tune 20.000 13.333 7.071 223.16 1.9845 1.9568 5.4406 32.850 93.484 July 20 000 13 333 7 159 223 13 1 9864 1 9788 5 4406 32 8SO 94 252 August 20.000 13.333 7.103 223.01 1.9890 1.9876 5.4406 32.850 94.700 France Year or month Ceylon Co b l i o a m- C sl z o e 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 (rupee) (peso) (koruna) (krone) mark) (rupee) (peso) (guilder) (pound) Official Free 1946 57 020 2 0060 20.876 .8409 30.155 20.581 37 813 322.63 1947 57.001 2.0060 20.864 .8407 30.164 20 577 37.760 322.29 1948 . . 57 006 2 0060 20 857 4929 3240 30 169 18 860 37 668 350 48 1949 27.839 2.0060 19.117 ,4671 .3017 27.706 12.620 34.528 365.07 1950 20.850 2.0060 14.494 .2858 7 23.838 20.870 11.570 26.252 277.28 1950—September 20.850 2 0060 14.494 .2855 23 838 20.870 11 572 26.237 277 29 October 20,850 2.0060 14.494 .2856 23.838 20.870 11.571 26.235 277.29 November 20.850 2.0060 14.494 .2856 23.838 20.870 11.571 26.232 277.29 December . ... 20.850 2.0060 14.494 .2856 23.838 20.870 11.572 26.240 277.22 1951—January 20.850 2 0060 14 494 .2856 23 838 20 870 11 567 26 239 277 21 February 20.850 2.0060 14.494 .2856 23.838 20.870 11 562 26 241 277.29 March 20.850 2.0060 14.494 .2856 23.838 20.870 11.561 26.260 277.29 April . . . 20 850 2 0060 14 494 .2856 23 838 20 870 11 561 26 241 277 29 May 20 850 2 0060 14 493 .2856 23 838 20 870 11 561 26 243 277 29 June 20.850 2.0060 14.484 .2855 23 838 20.870 11 561 26.279 277 29 July 20.850 2.0060 14.484 .2856 23.838 20.870 11.561 26.286 277.25 August 20.850 2.0000 14.492 .2856 23.838 20.870 11.568 26.280 277.11 Year or month N (k o r r o w ne a ) y 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 t c h d a ) ( S pe p s a e i t n a) (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 ) - U ( K p d n o i o u i n m t n g e d d - ) Ur (p u e g s u o) ay 1946 20.176 4.0501 400.50 9.132 25.859 23.363 403.28 65.830 56.280 1947 20.160 4.0273 400.74 9.132 27.824 23.363 402.86 65.830 56.239 1948 20.159 4.0183 400.75 9.132 27.824 23.363 403.13 65.830 56.182 1949 . 18.481 '49*. 723 3.8800 366.62 25.480 23.314 368.72 65.830 56.180 42.553 1950.... 14.015 49.621 3.4704 278.38 19.332 23.136 280.07 65.833 56.180 42.553 1950—September . . 14 015 49.625 3.4842 278.38 19.331 22 959 280.07 65.833 56.180 42.553 October 14 015 49.625 3.4898 278.38 19.332 22.942 280.07 65.833 56.180 42.553 November 14 015 49.625 3.4791 278.38 19.332 22.946 280.07 65.833 56.180 42.553 December 14 015 49.625 3.4838 278.38 19.327 23.201 279.99 65.833 56.180 42.553 1951—January 14.015 49.625 3.4764 278.38 19.327 23.304 279.97 65.833 56.180 42.553 February 14.015 49.625 3.4679 278.38 19.327 23.265 280.07 65.833 56.180 42.553 March 14.015 49 627 3.4766 278.38 19.327 23 177 280 07 65.833 56.180 42.553 April . 14.015 49.643 3.4799 278.38 19.327 23.133 280.07 65.833 56.180 42.553 May 14.015 49 643 3.4826 278.38 19.327 23 100 280 06 65 833 56.180 42.553 June 14.015 49.644 3.4880 278.38 19.327 23.018 280.07 65.833 56.180 42.553 Tuly ... . 14 015 49 643 3 4827 278 38 19 327 23 038 280 02 65 833 56.180 42.553 August 14.015 49.643 3.4727 278.38 19.327 23.015 279.88 65.833 56.180 42.553 1 In addition to the rates shown, three other rates were certified from Jan. 1 through Aug. 28, 1950. The 1950 averages for these rates are as follows (in cents per peso): Preferential "A"—20.695, Preferential "B"—17.456, and "Special"—13.896. 2 Based on quotations beginning Sept. 1, 1950. 3 Based on quotations beginning July 13, 1950. 4 Based on quotations beginning Oct. 11, 1950. 5 Beginning Aug. 27, quotations on Straits Settlements dollar were discontinued and quotations on Malayan dollar substituted. The rate on both has been the same for a considerable period. 6 Based on quotations through Sept. 30, 1950; official rate abolished after that date. 7 Based on quotations beginning June 22, 1950. 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 October 1950, p. 1419; January 1950, >. 123; October 1949, p. 1291; January 1949, p. 101; July 1947, p. 933; and February 1944, p. 209. SEPTEMBER 1951 1217 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

PRICE MOVEMENTS IN PRINCIPAL COUNTRIES WHOLESALE PRICES—ALL COMMODITIES [Index numbers] Year or month U ( S 1 n t 1 9 i a 0 2 t t 0 6 e e ) d = s C (1 a = 9 n 3 1 a 5 0 - d 0 3 a ) 9 M (1 e 1 9 x 0 3 i 0 9 c ) = o K U ( i 1 n n 1 9 i 0 3 g t 0 0 d e ) o d = m F (1 r 1 9 a 0 4 n 0 9 c ) e = ( I 1 1 t 9 0 a 3 0 l 8 ) y = ( a J 1 v 9 a = e 3 p r 4 1 a a - ) g n 3 e 6 ( J J N u u e l = n l t a e y 1 h n 0 e d 1 1 0 r 9 s 9 ) 3 - 3 8 9 - S ( w 1 1 9 e 0 3 d 0 5 ) e = n ( S A w u = l g i a . t 1 n z 0 1 d e 0 9 r ) 3 - 9 1926 100 130 1124 150 U26 2 135 1940 79 108 103 137 7 121 2 131 146 133 1941 87 117 110 153 9 136 2 150 172 171 1942 99 123 121 159 10 153 2 157 189 195 1943 103 128 146 163 12 2 160 196 203 1944 104 131 179 166 14 2 164 196 207 1945 106 132 199 169 20 4 181 194 205 1946 121 139 229 175 34 16 251 186 200 1947 152 164 242 192 52 5,159 48 271 199 208 1948 165 194 260 219 89 5,443 128 281 214 217 1949 . 155 199 285 230 100 5,170 209 296 216 206 1950 162 211 311 262 108 4,905 246 227 203 1950—July 163 212 307 260 106 4,694 242 317 224 199 August 166 216 312 264 107 4,913 254 225 205 September 170 223 321 272 112 5,088 260 228 209 October 169 220 326 280 113 5 176 269 230 213 November 172 222 332 289 117 5,279 277 244 216 December 175 225 335 292 121 5,424 281 253 218 1951—January 180 232 344 300 123 5,652 296 266 226 February 184 239 359 306 130 5,738 316 275 230 March 184 242 375 314 134 5,724 333 287 231 April 184 242 385 319 ••140 5,697 346 297 231 May 183 242 394 320 141 5,677 302 231 June 182 243 400 321 138 P5,598 P3O5 228 July 180 396 320 P135 P Preliminary. r Revised. 1 Approximate figure, derived from old index (1913 =100). 2 Approximate figure, derived from old index (July 1914 =100). Sources.—See BULLETIN for August 1951, p. 1046; 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) (1935-39=100) (1930=100) (July 1938-June 1939=100) Year or month Raw and Fully and pr F o a d r uc m ts Foods co O i m t ti m h e e o s r d- pr F o a d r uc m ts f m a p g c a a o t r n o u t d u r l s - e y d f c m a g h c a o i t n o e u f d u r l s - e y d Foods pr I o t n r d d i u u a c s l t - s Foods t p r r I i o n a d d l u u c s r t - a s w p f r I i o t n n r d d i i u u a s c s l h t - e s d 1926 100 100 100 144 129 133 1940 68 71 83 96 104 110 133 138 121 163 126 1941 82 83 89 107 115 119 146 156 140 177 148 1942 106 100 96 127 124 124 158 160 157 175 154 1943 123 107 97 145 132 127 160 164 157 174 159 1944 123 105 99 155 135 129 158 170 159 179 163 1945 128 106 100 165 137 130 158 175 172 193 184 1946 149 131 110 177 141 138 158 184 200 282 261 1947 181 169 135 190 165 162 165 207 214 328 276 1948 188 179 151 230 198 192 181 242 231 342 283 1949 166 161 147 226 199 199 197 249 243 370 297 1950 170 166 153 233 213 211 221 286 1950—July 176 171 152 247 219 209 222 282 August 178 175 156 236 221 214 217 291 September 180 177 159 235 226 222 220 303 October 178 173 162 229 220 221 226 311 November 184 175 164 230 222 223 229 325 December 187 179 167 235 225 226 228 331 1951—January 194 182 170 242 231 234 228 345 February 203 188 172 254 237 240 227 356 !March . .. 204 187 172 264 239 244 226 370 April 203 186 172 257 239 245 236 370 May 200 187 172 257 239 244 242 P368 June 199 186 171 264 243 244 247 P367 July 194 186 169 252 p Preliminary. Sources.—See BULLETIN for August 1951, p. 1046; July 1947, p. 934; May 1942, p. 451; March 1935, p. 180; and March 1931, p. 159. 1218 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

PRICE MOVEMENTS IN PRINCIPAL COUNTRIES—Continued RETAIL FOOD PRICES COST OF LIVING [Index numbers] [Index numbers] United Switz- United Switz- Y m e o a n r t h or ( S U 1 = t n 9 a i 3 1 t t 5 0 e e - 0 s 3 d ) 9 * (1 C = 9 a a 3 d 1 n 5 a 0 - - 0 3 ) 9 1 K 7 ( d i , J o n 1 u m g n 9 - 4 e 7 F = r ( 1 a 1 9 n 0 4 c 0 9 e ) ( N 1 l e = 9 a t 3 1 n h 8 0 d e - 0 s r 3 ) - 9 1 ( l 9 A e 3 a u r 9 n g - . d = Y m e o a n r t h or ( S U 1 = t n 9 a i 3 1 t t 5 0 e - e 0 s 3 d ) 9 i (1 = C 9 a a 3 d 1 n 5 0 a - - 0 3 ) 9 1 K 7 ( d , i J o n u 1 m g n 9 - 4 e 7 F = r ( 1 a 1 9 n 0 4 c 0 9 e ) ( N 1 l e = 9 a t 3 1 n h 8 0 d e - 0 s r 3 ) - 9 1 ( l 9 A 3 a u e 9 n g r . - d = = 100) 100) = 100) 100) 1942 124 127 161 10 153 1942 117 117 200 10 141 1943 138 131 166 12 161 1943 124 118 199 12 148 1944 136 131 168 15 164 1944 126 119 201 16 151 1945 139 133 170 21 164 1945 129 119 203 22 153 1946 160 140 169 36 193 160 1946 140 124 204 35 192 152 1947 . . . 194 160 101 57 211 170 1947 . 160 136 101 57 199 158 1948 210 196 108 92 228 176 1948 172 155 108 90 206 163 1949 202 203 114 100 249 174 1949 170 161 111 100 219 162 1950 205 211 123 111 277 176 1950 172 167 114 111 240 159 1950-July 208 214 122 105 278 175 1950-July 172 168 114 240 158 August 210 217 121 109 275 178 August.... 173 169 113 239 159 September. 210 219 122 113 276 179 September. 175 170 114 113 243 160 October... 211 220 125 116 286 180 October... 176 171 115 248 161 November. 211 219 125 117 286 180 November. 176 171 116 249 161 December. 216 219 125 118 286 180 December. 179 171 116 117 249 161 1951-January... 222 220 127 120 179 1951-January... 182 173 117 119 162 February.. 226 224 127 121 178 February.. 184 175 118 121 163 March.... 226 234 128 123 178 March.... 185 180 119 124 163 April 226 238 131 125 178 April 185 182 121 126 165 May 227 235 135 129 179 May 185 182 124 129 166 June 227 240 136 127 180 June 185 184 125 129 166 July 228 250 P127 July 186 188 ?130 Pf rPrreeiulirmninnaarryy.. 1 Adjusted series reflecting allowances for rents of new housing units and, beginning January 1950, interim revision of series and weights. Sources.—See BULLETIN for August 1951, p. 1047; October 1950, p. 1421; January 1950, p. 125; July 1947, p. 935; May 1942, p. 451; October 1939, p. 943; and April 1937, p. 373. SECURITY PRICES [Index numbers except as otherwise specified] Bonds Common stocks Year or month U S g ( r t n h a a i i d g t t e e e h ) d s ( C 1 = a 9 3 n 1 5 0 a - 0 d 3 ) a 9 ( 1 K D 9 U 2 i e 1 n c n g e i = m t d e 1 o b d 0 m e 0 r ) F (1 r 1 9 a 0 4 n 0 9 c ) e = 1 N l e a t n h d er s - ( U 1 S = 9 t n 3 a 1 i 5 0 t t e - 0 e 3 ) d s 9 ( C 1 = a 9 3 n 1 5 a 0 - 0 d 3 ) a 9 ( K 1 U 9 in 2 n 6 g i = t d e 1 o d 0 m 0) 1 (D 9 F 3 e r 8 c a e = n m 1 c 0 b e 0 e ) r N la e n th d e s2 r- Number of issues. . 12 87 60 14 416 105 278 295 1943. 120.3 102.6 127.8 133.3 91.9 83.5 84.5 268 1944. 120.9 103.0 127.5 136.8 99.8 83.8 88.6 265 1945. 122.1 105.2 128.3 138.3 121.5 99.6 92.4 1946. 123.3 117.2 132.1 131.5 109.0 139.9 115.7 96.2 875 195 1947. 103.2 118.5 130.8 120.0 105.6 123.0 106.0 94.6 1,149 233 1948. 98.7 105.0 129.9 106.4 107.1 124.4 112.5 92.0 1,262 240 1949. 101.9 107.6 126.5 100.0 106.8 121.4 109.4 87.6 1,129 219 1950. 109.6 121.2 99.8 106.7 146.4 131.6 90.0 1,030 217 1950—August 110.5 120.8 99.3 105.0 147.2 135.7 89.0 1,020 September. 111.4 122.7 100.1 103.7 151.7 141.5 91.3 1,080 October. . . 108.7 124.2 98.5 104.3 157.8 145.4 92.5 1,035 November. 106.5 124.1 99.8 104.6 156.1 144.5 92.9 1,029 December.. 103.4 121.9 99.4 101.5 158.4 146.3 92.1 944 1951—January. 102.1 122.4 99.7 99.4 168.6 153.8 94.7 1,031 224 February '102.4 121.1 99.6 97.4 174.7 166.5 96.8 1,144 228 March. 95.6 120.2 100.1 96.6 170.3 162.9 96.2 1,159 226 April. . . 95.3 119.8 99.2 93.1 172.3 165.6 96.0 1,169 221 May. . . 95.3 118.3 100.4 86.9 173.9 164.2 99.7 1,172 215 June.. . 95.0 117.5 100.6 87.6 171.7 160.7 99 4 1,188 212 July.... 95.5 116.9 101.5 84.1 172.8 162.0 97.6 1,212 208 r Revised. 1 This index replaces the one previously shown. It is based on 60 issues as compared with 50 in the former index. For a detailed description of the construction of this index, see "Bulletin Mensuel de Statistique," Supplements, July-September 1950, pp. 318-330 and October- December 1950, pp. 402-403. Yearly averages prior to 1949 are derived from old index. 2 In June 1951 the Netherlands Central Bureau of Statistics discontinued its series of index numbers of stock prices, shown heretofore. The new figures shown are an average of the ratios of current prices to nominal values, express<*d as a percentage. A detailed explanation of the new series is given in the Central Bureau's publication "Mededeling No. 2104." NOTE.—For sources and description of statistics, see BULLETIN for March 1951, p. 357; 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. SEPTEMBER 1951 1219 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WM. MCC. MARTIN, JR., Chairman M. S. SZYMCZAK JAMES K. VARDAMAN, JR. R. M. EVANS EDWARD L. NORTON OLIVER S. POWELL ELLIOTT THURSTON, Assistant to the Board WINFIELD W. RIEFLER, Assistant to the Chairman WOODLIEF THOMAS, Economic Adviser to the Board OFFICE OF THE SECRETARY DIVISION OF EXAMINATIONS S. R. CARPENTER, Secretary GEORGE S. SLOAN, Director MERRITT SHERMAN, Assistant Secretary C. C. HOSTRUP, Assistant Director G. R. MURFF, Assistant Secretary FRED A. NELSON, Assistant Director KENNETH A. KENYON, Assistant Secretary ARTHUR H. LANG, Chief Federal Reserve Examiner DIVISION OF BANK OPERATIONS LEGAL DIVISION ROBERT F. LEONARD, Director GEORGE B. VEST, General Counsel J. E. HORBETT, Assistant Director FREDERIC SOLOMON, Assistant General Counsel LOWELL MYRICK, Assistant Director HOWARD H. HACKLEY, Assistant General Counsel DIVISION OF PERSONNEL ADMINISTRATION OFFICE OF THE SOLICITOR DWIGHT L. ALLEN, Director J. LEONARD TOWNSEND, Solicitor H, FRANKLIN SPRECHER, JR., Assistant Director G. HOWLAND CHASE, Assistant Solicitor DIVISION OF ADMINISTRATIVE SERVICES DIVISION OF RESEARCH AND STATISTICS LISTON P. BETHEA, Director RALPH A. YOUNG, Director JOSEPH E. KELLEHER, Assistant Director FRANK R. GARFIELD, Adviser on Economic Research EDWIN J. JOHNSON, Assistant Director KENNETH B. WILLIAMS, Assistant Director DIVISION OF SELECTIVE CREDIT REGULATION SUSAN S. BURR, Assistant Director GUY E. NOYES, Director DIVISION OF INTERNATIONAL FINANCE GARDNER L. BOOTHE, II, Assistant Director ARTHUR W. MARGET, Director HENRY BENNER, Assistant Director LEWIS N. DEMBITZ, Assistant Director CLARKE L. FAUVER, Assistant Director FEDERAL FEDERAL OPEN MARKET COMMITTEE ADVISORY COUNCIL WM. MCC. MARTIN, JR., Chairman WALTER S. BUCKLIN, BOSTON DISTRICT ALLAN SPROUL, Vice Chairman N. BAXTER JACKSON, NEW YORK DISTRICT R. M. EVANS RAY M. GIDNEY FREDERIC A. POTTS, PHILADELPHIA DISTRICT R. R. GILBERT SIDNEY B. CONGDON, CLEVELAND DISTRICT H. G. LEEDY EDWARD L. NORTON ROBERT V. FLEMING, RICHMOND DISTRICT OLIVER S. POWELL Vice President M. S. SZYMCZAK PAUL M. DAVIS, ATLANTA DISTRICT JAMES K. VARDAMAN, JR. ALFRED H. WILLIAMS EDWARD E. BROWN, CHICAGO DISTRICT President S. R. CARPENTER, Secretary MERRITT SHERMAN, Assistant Secretary W. L. HEMINGWAY, ST. LOUIS DISTRICT GEORGE B. VEST, General Counsel JOSEPH F. RINGLAND, MINNEAPOLIS DISTRICT WOODLIEF THOMAS, Economist KARL R. BOPP, Associate Economist DAVID T. BEALS, KANSAS CITY DISTRICT WATROUS H. IRONS, Associate Economist DONALD S. THOMPSON, Associate Economist DEWITT T. RAY, DALLAS DISTRICT CLARENCE W. TOW, Associate Economist JOHN H. WILLIAMS, Associate Economist JAMES K. LOCHEAD, SAN FRANCISCO DISTRICT RORERT G. ROUSE, Manager of System Open Market Account HERBERT V. PROCHNOW, Secretary 1220 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 Vice Presidents Bank of Deputy Chairman First Vice President Boston. . . . Harold D. Hodgkinson J. A. Erickson John J. Fogg- E. 0. Latham Ames Stevens Alfred C. Neal Robert B. Harvey 3 Carl B. Pitman E. G. Hult 0. A. Schlaikjer 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 W7m. G. McCreedy C. Canby Balderston W. J. Davis Robert N. Hilkert P. M. Poorman E. C. Hill Richard G. Wilgus 2 Cleveland George C. Brainard Ray M. Gidnev Wilbur T. Blair A. H. Laning 3 John C. Virden Wm. H. Fletcher Roger R. Clouse Martin Morrison W. D. Fulton Paul C. Stetzelberger J. W. Kossin 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 D. F. Hagner Edw. A. Wayne R. W. Mercer 3 Chas. W. Williams Atlanta Frank H. Neely Malcolm Bryan 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 L. H. Jones 2 John S. Coleman E. C. Harris H. J. Chalfont George W. Mitchell Neil B. Dawes A. L. Olson W. R. Diercks Alfred T. Sihler W. A. Hopkins W. W. Turner St. Louis Russell L. Dearmont Delos C. Johns FrederickL. Deming Paul E. Schroeder Wm. H. Bryce 0. M. Attebery Dale M. Lewis CM. Stewart Wm. E. Peterson H. H. Weigel C. A. Schacht J. C. Wotawa Minneapolis. . . . Roger B. Shepard J. N. Pevton H. C. Core H. G. McConnell W. D. Cochran A. W. Mills C. W. Groth Otis R. Preston E. B. Larson M. H. Strothman, Jr. Sigurd Ueland Kansas City. . . . Robert B. Caldwell H. G. Leedy L. H. Earhart G. H. Pipkin Robert L. Mehornay Henry 0. Koppang R. L. Mathes C. E. Sandv2 John Phillips, Jr. D. W. Woolley Dallas J. R. Parten R. R. Gilbert E. B. Austin Watrous H. Irons R. B. Anderson W. D. Gentry R. B. Coleman L. G. Pondrom 3 W. E. Eagle C. M. Rowland W. H. Holloway Mac C. Smyth San Francisco... Bray ton Wilbur C. E. Earhart J. M. Leisner H. F. Slade Harry R. Wellman H. N. Mangels S. A. MacEachron Ronald T. Symms 3 E. R. Millard W. F. Volberg W. L. Partner 0. P. Wheeler VICE PRESIDENTS IN CHARGE OF BRANCHES OF FEDERAL RESERVE BANKS Federal Reserve Federal Reserve Bank of Branch Chief Officer Bank of Branch Chief Officer 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 Richmond Baltimore D. F. Hagner Oklahoma City R. L. Mathes 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. vSchroeder Seattle J. M. Leisner 1 Also Federal Reserve Agent. 2 Cashier. 5 Also Cashier. 4 General Manager. SEPTEMBER 1951 1221 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE PUBLICATIONS The material listed below may be obtained from RULES OF ORGANIZATION AND RULES OF PROCEDURE— the Division of Administrative Services, Board of Board of Governors of the Federal Reserve Sys- Governors of the Federal Reserve System, Wash- tem (With Amendments). September 1946. 31 ington 25, D. C. Remittance should be made pages. payable to the order of the Board of Governors THE FEDERAL RESERVE ACT, as amended to Novemof the Federal Reserve System. ber 1, 1946, with an Appendix containing pro FEDERAL RESERVE BULLETIN. Issued monthly. Sub- visions of certain other statutes affecting the scription price in the United States and its pos- Federal Reserve System. 372 pages. 50 cents per sessions, Bolivia, Canada, Chile, Colombia, Costa paper-bound copy; $1.00 per cloth-bound copy. Rica, Cuba, Dominican Republic, Ecuador, Guatemala, Haiti, Republic of Honduras, Mexico, POSTWAR ECONOMIC STUDIES. (8 pamphlets) Newfoundland (including Labrador), Nicaragua, No. 1. Jobs, Production, and Living Standards. Panama, Paraguay, Peru, El Salvador, Uruguay, No. 2. Agricultural Adjustment and Income. and Venezuela is $2.00 per annum or 20 cents No. 3. Public Finance and Full Employment. per copy; elsewhere $2.60 per annum or 25 cents No. 4. Prices, Wages, and Employment. per copy. Group subscriptions in the United No. 5. Private Capital Requirements. States for 10 or more copies to one address, 15 No. 6. Housing, Social Security, and Public cents per copy per month, or $1.50 for 12 months. Works. FEDERAL RESERVE CHARTS ON BANK CREDIT, MONEY No. 7. International Monetary Policies. RATES, AND BUSINESS. Issued monthly. $6.00 per annum including historical supplement No. 8. Federal Reserve Policy. listed below, or 60 cents per copy. In quantities The price for the set of eight pamphlets is $1.25; of 10 or more copies of a particular issue for 25 cents per pamphlet, or, in quantities of 10 or single shipment, 50 cents each. (Domestic rates) more for single shipment, 15 cents per pamphlet. HISTORICAL SUPPLEMENT TO FEDERAL RESERVE THE FEDERAL RESERVE SYSTEM—ITS PURPOSES AND CHARTS ON BANK CREDIT, MONEY RATES, AND FUNCTIONS. November 1947; reprinted April BUSINESS. 113 charts. April 1951 edition. 1951. 125 pages. 75 cents per cloth-bound copy; Annual subscription to monthly chart book inin quantities of 10 or more copies for single cludes supplement; single copies, 60 cents each. shipment, 50 cents each. Paper-bound copies In quantities of 10 or more copies for single shipavailable without charge. ment, 50 cents each. (Domestic rates) BANKING STUDIES. Comprising 17 papers on bank- DEBITS AND CLEARINGS STATISTICS, THEIR BACKing and monetary subjects by members of the GROUND AND INTERPRETATION. October 1947. 50 Board's staff. August 1941; reprinted March pages. 25 cents per copy; in quantities of 10 or 1949. 496 pages. Paper cover. $1.00 per copy; more copies for single shipment, 15 cents each. in quantities of 10 or more copies for single ship- DISTRIBUTION OF BANK DEPOSITS BY COUNTIES, as of ment, 75 cents each. December 31, 1947. July 1948. 122 pages. As BANKING AND MONETARY STATISTICS. Statistics of of June 30, 1949. December 1949. 122 pages. banking, monetary, and other financial develop- DISTRIBUTION OF BANK DEPOSITS BY COUNTIES AND ments. November 1943. 979 pages. $1.50 per STANDARD METROPOLITAN AREAS, as of Decemcopy. No charge for individual sections (unber 30, 1950. July 1951. 125 pages. bound). MONETARY AND BANKING REFORM IN PARAGUAY A STATISTICAL STUDY OF REGULATION V LOANS. Includes translation of laws, accompanying re- September 1950. 74 pages. 25 cents per copy; ports, and introduction reviewing the monetary in quantities of 10 or more copies for single shiphistory of Paraguay. July 1946. 170 pages. ment, 15 cents each. $1.00 per copy. REGULATIONS OF THE BOARD OF GOVERNORS OF THE 1 A more complete list, including periodical releases and FEDERAL RESERVE SYSTEM. Individual regulations reprints, appeared on pp. 734-37 of the June 1951 with amendments. BULLETIN. 1222 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE PUBLICATIONS REPRINTS 1951 SURVEY OF CONSUMER FINANCES—SELECTED (From Federal Reserve Bulletin unless preceded by an asterisk) PRELIMINARY RESULTS. April 1951. 4 pages. PART I. THE ECONOMIC OUTLOOK AND LIQUID A STUDY OF INSTALMENT CREDIT TERMS, by Milton ASSET POSITION OF CONSUMERS. June 1951. 18 Moss. December 1949. 8 pages. pages. PART II. PURCHASES OF HOUSES AND DURABLE GOODS IN 1949 AND BUYING PLANS FRENCH EXCHANGE STABILIZATION FUND, by Robert FOR 1951. July 1951. 18 pages. PART III. Solomon. January 1950. 5 pages. DISTRIBUTION OF CONSUMER INCOME IN 1950. INSURANCE OF COMMERCIAL BANK DEPOSITS. Feb- August 1951. 18 pages. PART IV. DISTRIBUruary 1950. 5 pages. TION OF CONSUMER SAVING IN 1950. September 1951. 18 pages. (Other articles on the 1951 STAFF STUDY ON ASSESSMENTS AND COVERAGE FOR survey will appear in subsequent issues of DEPOSIT INSURANCE. February 1950. 15 pages. the BULLETIN. Also, similar survey for 1946 INDUSTRIAL DIFFERENCES IN LARGE CORPORATION from June-September 1946 BULLETINS, 28 pages; FINANCING IN 1949, by Eleanor J. Stockwell. for 1947 from June-August and October 1947 June 1950. 6 pages. (Also, similar survey by BULLETINS, 48 pages; for 1948 from June-Sep- Charles H. Schmidt. June 1949. 8 pages.) tember and November 1948 BULLETINS, 70 pages; for 1949 from June-November 1949 and RETAIL CREDIT SURVEY—1949. From June 1950 January 1950 BULLETINS, 124 pages; for 1950 BULLETIN with supplementary information for from April and June-December 1950 BULLETINS, nine separate trades. 37 pages. 106 pages, which includes THE METHODS OF THE STATEMENT ON PROPOSED SMALL BUSINESS LEGISLA- SURVEY OF CONSUMER FINANCES.) TION. Presented by Thomas B. McCabe, Chairman, Board of Governors of the Federal Reserve # THE TREASURY—CENTRAL BANK RELATIONSHIP IN System, before the Senate Committee on Bank- FOREIGN COUNTRIES—PROCEDURES AND TECH- NIQUES. November 1950. April 1951. 19 pages. ing and Currency, June 27, 1950. July 1950. 8 pages. * PROGRAM FOR VOLUNTARY CREDIT RESTRAINT. BRANCH BANKING IN THE UNITED STATES, 1939 and As amended to April 20, 1951. 4 pages. 1949. July 1950. 16 pages. TRENDS IN INTERNATIONAL TRADE AND PAYMENTS. DEFENSE LOAN POLICY. An announcement adopted April 1951. 14 pages. jointly by National and State Supervisors of banks and other lending institutions. August 4, 1950. ESTIMATED LIQUID ASSET HOLDINGS OF INDIVIDUALS August 1950. 1 page. AND BUSINESSES. July 1951. 2 pages. REVISED ESTIMATES OF CONSUMER CREDIT. Novem- HOUSE PURCHASES IN THE FIVE MONTHS FOLLOWING ber 1950. 2 pages. THE INTRODUCTION OF REAL ESTATE CREDIT REGU- LATION. July 1951. 23 pages. MEASUREMENT OF CONSUMER CREDIT. Address by Ralph A. Young and Homer Jones before the FINANCING OF LARGE CORPORATIONS IN 1950, by University of Illinois Consumer Credit Confer- Eleanor J. Stockwell. August 1951. 7 pages. ence, Chicago, Illinois, October 5, 1950. November 1950. 9 pages. SAVING IN THE DEFENSE ECONOMY. September 1951. 5 pages. THE INTERNATIONAL MOVEMENT OF GOLD AND DOL- LARS IN 1950. March 1951. 10 pages. THE BALANCE SHEET AND CURRENT TRENDS OF AGRICULTURE, 1951. September 1951. 14 pages. STATEMENT BY CHAIRMAN MARTIN ON HIS TAKING OATH OF OFFICE, APRIL 2, 1951. April 1951. THE CURRENT POSITION OF AGRICULTURE, by Philip 1 page. T. Allen. September 1951. 11 pages. 1223 SEPTEMBER 1951 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 ^C BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM ® FEDERAL RESERVE BANK CITIES • FEDERAL RESERVE BRANCH CITIES td sd Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis