Full text of Federal Reserve Bulletin : April 1932

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FEDERAL RESERVE
BULLETIN




APRIL, 1932
ISSUED BY THE

FEDERAL RESERVE BOARD
AT WASHINGTON

Recent Banking Developments
Comments and Recommendations on the
Glass Bill
Report of Reconstruction Finance Corporation
Annual Reports of Central Banks: Belgium,
Germany, Switzerland

UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1932

FEDERAL RESERVE BOARD
Ex officio members:

EUGENE MEYER, Governor,
CHARLES S. HAMLIN.
ADOLPH C. MILLER.
GEORGE R. JAMES.
WAYLAND W. MAGEE.

OGDEN L. MILLS,

Secretary of the Treasury, Chairman.
J. W. POLE,

Comptroller of the Currency.

LEO H. PAULGER, Chief, Division of Examinations
E. A. GOLDENWEISER, Director, Division of Research
and Statistics.
CARL E. PARRY, Assistant Director, Division of Research
and Statistics.
E. L. SMEAD, Chief, Division of Bank Operations.

FLOYD R. HARRISON, Assistant to the Governor.
CHESTER MORRILL, Secretary.

E. M. MCCLELLAND, Assistant Secretary.
J. C. NOELL, Assistant Secretary and Fiscal Agent.
WALTER WYATT, General Counsel.

FEDERAL ADVISORY COUNCIL
District
District
District
District
District
District

No.
No.
No.
No.
No.
No.

1
2
3
4
5
6

(BOSTON)
( N E W YORK)
(PHILADELPHIA)
(CLEVELAND)
(RICHMOND)
(ATLANTA)

District No. 7 (CHICAGO)
District No. 8 (ST. LOUIS)
District
District
District
District

No.
No.
No.
No.

'

THOMAS M. STEELE.
ROBERT H. TREMAN.
HOWARD A. LOEB.
J. A. HOUSE.
HOWARD BRUCE.
JOHN K. OTTLEY.

MELVIN A. TRAYLOR, Vice President.
WALTER W. SMITH, President.

9 (MINNEAPOLIS)
THEODORE WOLD.
10 (KANSAS CITY)
WALTER S. MCLUCAS.
11 (DALLAS)
J. H. FROST.
12 (SAN FRANCISCO)
HENRY M. ROBINSON.
WALTER LICHTENSTEIN, Secretary.

u




OFFICERS OF FEDERAL RESERVE BANKS
Federal Reserve Bank
of—

Chairman

Governor

Boston
New York

Frederic H. Curtiss... Roy A. Young
J. H. Case
Geo. L. Harrison

Philadelphia
Cleveland. _
Richmond

R. L. Austin _
George DeCamp
Wm. W. Hoxton

Atlanta
Chicago _

Oscar Newton
Eugene M. Stevens

St. Louis

_... John S. Wood

Deputy governor

Cashier

W. W. Paddock
W. R. Burgess
J. E. Crane
A. W. Gilbart
E. R. Kenzel
Walter S. Logan
L. R. Rounds
L. F. Sailer
Wm. H. Hutt . .
M. J. Fleming

W. Willett.
C. H. Coe.i
Ray M. Gidney.*
J. W. Jones.1
W. B. Matteson.i
J. M. Rice.1 1
Allan Sproul.
L. Werner Knoke.1
C. A. Mcllhennv.
Geo. W. Norris
W. G. McCreedy.2
H. F. Strater.
E. R. Fancher
Geo. H. Keesee.
George J. Seay
C. A. Peple
John S. Walden, jr.*
R. H. Broaddus
M. W. Bell.
W. S.Johns
Eugene R. Black
W. S. McLarin, jr.*
H. F. Conniff
1
C. R. McKay . . W. C. Bachman.
J. B. McDougal
D. A. Jones.1
John H. Blair
0. J. Netterstrom.1
J. H. Dillard
E. A. Delaney.21
S. F. Gilmore.
Wm. McC. Martin.__ 0. M. Attebery
A TT TJ 111 2
F. N. Hall.*
G. 0. Hollocher.*
0. C. Phillips.*
H. I. Ziemer.
Harry Yaeger
W. B. Geery
Frank C. Dunlop.2
H. I. Ziemer
C. A. Worthington.__. J. W. Helm.
Geo. H. Hamilton
T W TTplm
Fred Harris.
R. R. Gilbert
B. A. McKinney
W. 0. Ford.1
R. B. Coleman
Wm.
M. Hale.
Wm.
A.
Day
Jno. U. Calkins..
Ira Clerk
Q

Minneapolis
Kansas City
Dallas

John R. Mitchell
M. L. McClure
C. C. Walsh

San Francisco

Isaac B. Newton
1

Assistant deputy governor.

' Controller.

MANAGING DIRECTORS OF BRANCHES OF FEDERAL RESERVE BANKS
Federal Reserve Bank of—
New York:
Buffalo branch
Cleveland:
Cincinnati branch
Pittsburgh branch
Richmond:
Baltimore branch
Charlotte branch
Atlanta:
New Orleans branch
Jacksonville branch
Birmingham branch.._
Nashville branch
Chicago:
Detroit branch
St. Louis:
Louisville branch
Memphis branch
Little Rock branch

Managing director
R. M. O'Hara.
C. F. McCombs.
J. C. Nevin.
Hugh Leach.
W. T. Clements.
Marcus Walker.
... Hugh Foster.
A. E. Walker.
J. B. Fort, jr.
W. R. Cation.
John T. Moore.
W. H. Glasgow.
A. F. Bailey

Federal Reserve Bank of—
Minneapolis:
Helena branch
Kansas City:
Omaha branch
Denver branch
Oklahoma City branch
Dallas:
El Paso branch
Houston branch
San Antonio branch
San Francisco:
Los Angeles branch
Portland branch
Salt Lake City branch
Seattle branch
__ __
Spokane branch

Managing director
R. E. Towle.
L. H. Earhart.
___ J. E. Olson.
C. E. Daniel.
J. L. Hermann.
W. D. Gentry.
M. Crump.
W. N. Ambrose.
R. B. West.
W. L. Partner.
C. R. Shaw.
D. L. Davis.

SUBSCRIPTION PRICE OF BULLETIN

The FEDERAL RESERVE BULLETIN is the board's medium of communication with member
banks of the Federal reserve system and is the only official organ or periodical publication of the
board. The BULLETIN will be sent to all member banks without charge. To others the subscription price, which covers the cost of paper and printing, is $2. Single copies will be sold
at 20 cents. Outside of the United States, Canada, Mexico, and the insular possessions, $2.60;
single copies, 25 cents.




in

TABLE OF CONTENTS
Page

Review of the month—Recent banking developments
Changes in foreign central bank discount rates
,
Federal Reserve Board's comments and recommendations on the Glass bill
Statement of Federal Advisory Council on the Glass bill
First quarterly report of the Reconstruction Finance Corporation
Condition of all banks in the United States on Dec. 31, 1931
Annual report of the National Bank of Belgium
Annual report of the German Reichsbank
Annual report of the National Bank of Switzerland
National summary of business conditions
Financial, industrial, and commercial statistics:
Reserve bank credit, gold stock, money in circulation, etc
Member and nonmember bank credit—
All banks in the United States
All member banks
Weekly reporting member banks in leading cities
Brokers' loans
Acceptances and commercial paper
Discount rates and money rates
Bank suspensions and banks reopened
Member bank holdings of eligible assets (Government securities and eligible paper)
Security prices, security issues, United States Government securities
Production, employment, car loadings, and commodity prices
Merchandise exports and imports
Department stores—indexes of sales and stocks
Freight-car loadings, by classes
Financial statistics for foreign countries:
Gold reserves of central banks and governments
Gold production
Gold movements
Government note issues and reserves
Bank for International Settlements
Central banks
.
Commercial banks
Discount rates of central banks
Money rates
Foreign exchange rates
Price movements—
Security prices
Wholesale prices
Retail food prices and cost of living
Federal reserve statistics by districts, etc.:
Banking and financial statistics
Industrialjmd commercial statistics
IV




203
205
206
222
225
234, 270-273
242
244
251
227
228-231
234, 270-273
232-234, 274
235, 275
235
236
238, 276
237, 278-280
237
239
240, 281-283
241
241
241
255
256
256-258
259
259
260-262
263
264
264
265
266
266,267
267
268-280
281-284

FEDERAL RESERVE BULLETIN
VOL.

18

APRIL, 1932

REVIEW OF THE MONTH
Banking conditions showed further improvement in March. Bank suspensions, which had
numbered 342 in January and
122 in
February, were 45 in
March, and deposits of banks
that reopened their doors in March were approximately as large as deposits in those that suspended during the month. Restoration of
confidence, following upon the reduction in
bank failures, was reflected in a continued and
accelerated return flow of currency from the
public to the banks. Liquidation of bank
loans continued during the month, but was
offset in part by an increase in investments,
particularly in holdings of United States Government securities. Reserve balances of member banks with the reserve banks, which had
declined practically continuously from the
middle of last year to the end of February,
showed an increase in March. As a consequence chiefly of the return flow of currency,
together with an increase in the country's stock
of monetary gold, the total volume of reserve
bank credit declined in March by $112,000,000.
There was an increase of $130,000,000 in the
reserve banks' holdings of United States Government securities, accompanied by a decline
in their holdings of acceptances and a reduction
of $200,000,000 in the indebtedness of member
banks to the reserve banks. Although purchases of United States Government securities
by the reserve banks were made largely in New
York, the funds thus placed in the market were
distributed to a considerable extent to other
parts of the country through Treasury transfers
of funds, in part to cover payments of loans
made by the Reconstruction Finance Corporation and in part as ordinary Government ex-




No. 4

penditures. As a consequence of the return flow
of currency, the Treasury transfers, and other
factors affecting the interdistrict movement of
funds, discounts for member banks declined at
all the Federal reserve banks, the largest declines being reported by the Federal Reserve
Banks of New York, Philadelphia, and Cleveland. Conditions in the money market continued to be easy and there was some decline
in short-term money rates.
On March 29 the Federal Reserve Board
submitted to the Committee on Banking and
Board's letter to Currency of the United States
Senate ComSenate its comments and recmittee
ommendations on Senate Bill
4115, introduced by Senator Glass on March
17, 1932. This bill was drafted in accordance
with a resolution adopted by the Senate in
1930, and proposes many fundamental changes
in the country's banking laws. The board's
report on the bill, which represented the unanimous recommendations of the Federal Reserve
Board, was presented to the committee by
Governor Eugene Meyer at a hearing on
March 29, and has been printed in the record
of the committee's hearings, together with
Governor Meyer's oral testimony. The report
was in the form of a memorandum in which
the bill was discussed in detail, section by
section, and was accompanied by a letter of
transmittal summarizing the board's comments
and recommendations regarding the bill. The
full text of the report and of the accompanying
letter will be found on pages 206-221 of this
issue of the BULLETIN.
The Federal Advisory Council at a special
meeting on March 29 issued a statement of its
recommendations respecting the bill, which
appears on pages 222-225.
203

204

FEDERAL RESERVE BULLETIN

Gold movements in Europe during the past
month were similar in character to those of
the month preceding. The
B m k of F r a n c e
*
increased its
gold stock by $106,000,000,
nearly two-thirds of which was taken from the
United States. The remainder was drawn
largely from the London bullion market, where
Indian and South African shipments were disposed of in substantial volume.
The loss of $13,000,000 of gold by Germany
reflected the partial repayment by the Riechsbank of the $100,000,000 emergency credit
obtained last June and periodically renewed.
The most recent renewal—that of March 4—
provided for the repayment of 10 per cent of
the principal; and the Keichsbank drew the
required funds from its gold reserves.
GOLD RESERVES OF SELECTED CENTRAL

APRIL, 1932

change had fluctuated between $3.40 and $3.50.
This level was considerably above that of last
December; and its maintenance, at a time
when the British Government was preparing
to liquidate indebtedness abroad, was followed
by increased confidence in the pound. The
resulting high premium on forward transactions
heightened the attractiveness of London as a
market for the investment of short-term funds.
Late in March the dollar rate on sterling was
at the level of $3.75.
Money rates on the open-market in London
continued to ease. Bankers' balances at the
Bank of England remained large throughout
the month ending March 23, as indicated by
the accompanying condition statement. In
fact, heavy purchases of securities by the Bank
of England increased these balances substantially, notwithstanding large withdrawals of

BANKS
BAXK OF ENGLAND

[In millions of dollars]

[In thousands of pounds sterling]
Change from—
Date
1932

Central bank of -

Gold
reserves

I

England
France
Germany
Italy
Belgium
Netherlands
Switzerland
v Preliminary.

i Ma
.. Ma
Mai
Ma
_.; Ma
; MM
: Mar

588 :
2,999 |
209 i

349 !

352 !
471 i

!

Month
before

-13
-2

+3

-11

Mar. 23,

Year
before
-118
+800
-33(5
+17
+149
+173
+347

j
Gold
Discounts and advances
Securities...
Bankers'
- - deposits..
"

Other deposits.....
Notes in circulation.

m 2

[ 120,807
I 11,273
| 357,450
73,449
43. 409

358. 835

Change from—
...
Feb. 24, ! Mar. 25,
. 1932 ! 1931

!

+34 , -22,807
-220 1
-89
+15,302 ; +49, 423
+5,525 i +15, 745
- 2 . 914
+198
+ 12,432
+ 10,028

notes into circulation. In the latter part of
The British Government on March 4 repaid March the rate on prime bankers' acceptances
$150,000,000 and on March 29 an additional averaged below 3 per cent and that on treasury
bills below 2 per cent. The Bank of England
«'
L. <• IT i A $30,000,000
of the
$200,000,000
Bank of England
'
,.,
,
, ,
.
lowered
its rate of discount on March 10 from
1-year credit extended on Au5
to
4
per
cent and on March 17 to 3}i per cent.
gust 28, 1931, by a consortium of private banks
Bank
of
France holdings of foreign exchange
in this country. Retirements of $100,000,000
declined
further
during the four weeks ending
of a similar credit granted by private lenders in
March
18, by about 3,800,000,France were also announced during the month. Bank of France
000
francs.
Only 2,700,000,000
In conjunction with these payments all restricfrancs
of
this
decline
was
represented
by direct
tions on dealings in sterling exchange were reconversions
into
gold.
The
remaining
1,100,moved.
000,000
francs
was
purchased
from
the
bank
Throughout most of January and February,
with
drafts
on
"other
deposits,"
wliich
include
the two months immediately preceding the first
of these repayments, quotations on sterling ex- balances of the French commercial banks.




205

FEDERAL RESERVE BULLETIN

APRIL, 1932

Until recently the flow of short-term funds of the German commercial banks now in proginto Paris, including the drawing by French ress. This reorganization is discussed more
private banks on their foreign balances, had
KEICHSBAXK
been for some months a principal source not only
[In millions of reichsm.irks]
of the gold acquired by the Bank of France outside of conversion operations, but also of foreign
Change from—
currencies used in paying for a net excess of
Mar. 23,
\
'• 1932
F e b . 23, i M a r . 23,
merchandise imports into the country. The
1932
! 1931
flow of short-term funds into France has lately
Gold....

Foreign exchange reserves
Discounts and advances..
Securities
Deposits
Notes in circulation
_

BANK OF FRA.VCE
lln millions of francs]

877
142
3,354
302
49i :
4,005

-53
-4
+41
+200
+159
+3

i
i
i
•

-1,409
-81
+1,793
+260
+148
+240

Change from—
! M a r . IS, !•
|
1932

Gold
Foreign exchange
Domestic discounts and advances
Government deposits
Other deposits

:

:

Notes in circulation"-"."._ "~~~ ~ I ~ ~ . . . . . . .

Feb. 19, i Mar. 20,
1932 ; 1931

76,f>09
+ 2 , 094 i +20, 406
12,728
- 3 , 8 2 7 i - 1 3 . 548
7,101
-1,804
-007 I
3,823
+349 :
- 8 , 034
23,837 i -1,339
+11.953
81,929 !

-050

+ 4, 559

diminished, however, partly because the foreign
balances of French banks, as evidenced by the
reports of the four large Paris institutions, have
been largely repatriated. An additional factor
has been the increased flow of funds from Paris
and elsewhere to London, consequent upon the
improvement of financial conditions in England.
At the same time French foreign trade has
continued adverse, and it has therefore been
necessary for the market to purchase exchange
from the Bank of France.
The German Ileichsbank lost 57,000,000
reiehsmarks of gold and foreign exchange
reserves in the month ended
Reichsbank
March 23. About 42,000,000
reichsmarks of this loss was attributable to the
fact that on March 4 the bank repaid 10 per
cent of the $100,000,000 credit granted by a
group of central banks last June. Deposits at
the Reichsbank increased during the month to
the largest figure reported since last November.
This expansion is to be associated with the
increase of 200,000,000 reichsmarks in security
holdings consequent upon the reorganization




fully in the Reichsbank's annual report for 1931
printed elsewhere in this BULLETIN.
The increase in the security portfolio of the
bank represents the purchase of 200,000,000
reiebsmarks of new capital stock of the Gold
Discount Bank to enable the latter to participate in the program of the German Government
for reconstruction of the principal commercial
banks. The Gold Discount Bank, with the funds
thus placed at its disposal, purchased capital
shares of the reorganized institutions, while the
Government not only purchased capital shares
in substantial volume but in addition advanced
funds to be used in absorbing losses sustained
by the commercial banks.
Changes in Bill Rates

At the Federal Reserve Bank of New York
buying rates on bills having maturities up to
120 days were reduced March 25 as follows:
Bills having maturities up to 45 days, from 2%
to 2% per cent; 45 to 120 days from 2% to 2%
per cent.
Changes in Foreign Central Bank Discount Rates
The following changes in discount rates during the period March 13-April 1 have been
reported by central banks in foreign countries:
Austrian National Bank—March 18, from 8 to 7
per cent.
Bank of England—March 17, from 4 to 3% P e r cent.
Bank of Italy—March 21, from 7 to 6 per cent.

206

FEDERAL RESERVE BULLETIN

APRIL, 1932

FEDERAL RESERVE BOARD'S COMMENTS AND RECOMMENDATIONS ON THE
GLASS BILL (S. 4115)
MARCH 29,

1932.

Hon. PETER NORBECK:,

Chairman Committee on
Banking and Currency,
United States Senate,
Washington, D. C.
DEAR SENATOR NORBECK: On March 17,
1932, I received a letter from Senator Glass
inclosing copies of Senate bill 4115, and stating
that the Banking and Currency Committee
would be glad to have the Federal Reserve
Board make any comments or suggestions that
in its judgment would seem desirable. Accordingly, there is inclosed herewith for the
consideration of your committee a memorandum containing the board's comments and
recommendations.
The subjects dealt with in the bill may be
classified under three general heads: (1) Those
relating more directly to the Federal Reserve
Board and the reserve banks; (2) those concerning primarily member banks, and (3) those
dealing with affiliates of member banks.
The Federal Reserve Board is in sympathy
with the purpose of the bill to strengthen the
supervision of the Federal reserve system over
general credit conditions and to invest the
Federal reserve authorities with certain disciplinary powers in relation to banks that
pursue unsafe and unsound policies or abuse
the privileges of membership. The board's
recommendations on this subject are incorporated in its proposed revision of sections 3
and 29 of the bill.
With respect to the section of the bill dealing with open-market operations, the board
calls attention to the fact that there is already
in existence an open-market committee on
which each of the Federal reserve banks has
representation. This has come about as the
result of natural development. The board
believes that it would be inadvisable to disturb
this development by crystallizing into law any




particular procedure. The board believes that
nothing further is necessary or advisable at
this time than an amendment clarifying its
power of supervision over open-market operations of the Federal reserve banks and their
relationships with foreign banks, as set out in
the memorandum attached.
The board is not in sympathy with the
provisions of the bill discriminating against
member-bank collateral notes. Experience
shows that the particular instrument on which
Federal reserve credit is obtained is not an
adequate test of the use to be made by the
member bank of the proceeds of the credit and
that an attempt to control speculation through
restrictions on member-bank collateral notes
would not be effective in accomplishing the
purpose of this section of the bill. Indeed, it
probably would interfere seriously with the
convenient and economical operation of the
system. In this connection the Federal Reserve Board desires to renew the recommendation made in its annual reports for several
years, that the maturity for which advances
may be made to member banks on their promissory notes secured by paper which is eligible
for discount be increased from 15 to 90 days.
Such an amendment would be especially helpful to country banks.
The board is of the opinion that the adoption
of a system of reserves based on velocity of
accounts as well as on their volume, as recommended by the system's committee on reserves,
would be an important step in strengthening
the influence that the Federal reserve system
could exert in the direction of sound credit conditions. The section of the bill dealing with
reserves would accentuate rather than reduce
the inequalities that have grown up in the distribution of reserves between different classes
of member banks. The board also believes it
should not be overlooked that this section of
the bill would exert a tightening influence on

207

FEDERAL RESERVE BULLETIN

APRIL, 1932

credit conditions at times when it would be
contrary to the public interest.
The board is in favor of establishing a liquidating corporation, but proposes to limit the
scope of its operations to member banks and
suggests a different method of financing it, together with certain changes in the provisions
for its administration.
If the section on branch banking is enacted
in the form proposed in the bill, it is suggested
that certain sections of existing law be modified
so as to bring them into harmony with the
purposes indicated in this section of the bill.
With respect to affiliates the board believes
that important reforms to be accomplished at
the present time are the granting of power to
the supervisory authorities to obtain reports
and to make examinations of all affiliates of
member banks and the prescribing of limitations on the loans that a member bank may
make to its affiliates. The board realizes that
many evils have developed through the operation of affiliates connected with member banks,
particularly affiliates dealing in securities. The
attached memorandum contains a draft of a
provision for the separation of such affiliates
after a lapse of three years.
The board takes the view that legislation
further materially restricting the character of
member-bank loans and investments is not desirable at a time when the country's banking
system is going through a period of severe readjustment. Some of the provisions of the proposed bill would have a tendency to bring about
further contraction of credit and thus retard
the recovery of business. It is for these reasons
that changes in a number of sections of the bill
are suggested.
It should be recognized that effective supervision of banking in this country has been
seriously hampered by the competition between
member and nonmember banks, and that the
establishment of a unified system of banking
under national supervision is essential to
fundamental banking reform.
Copies of this letter and the inclosed memorandum are being sent to Senator Glass, and
the board will be glad to supply you with copies
110331—32




2

for the convenience of each member of your
committee.
Very truly yours,
EUGENE MEYER, Governor.
COMMENTS AND RECOMMENDATIONS l
SECTION 2

This section defines affiliates and upon its
scope depends in a large measure the scope and
effect of all provisions of the bill relating to
affiliates.
While the definition contained in the bill
mentions certain specific types of institutions
which are frequently affiliated with member
banks, the words "or a corporation" in line 4
on page 2 make it applicable to corporations of
any character which are affiliated with member
banks in any of the ways described in the
succeeding paragraphs of the definition.
It is believed that the most satisfactory solution of this problem is to make the definition
very broad, but in dealing with affiliates to
observe the following principles: (1) To require
them to make reports and to submit to examination at the discretion of the Federal Reserve
Board or the Comptroller of the Currency; (2)
to limit the loans that can be extended to an
affiliate by a member bank; and (3) to prohibit
the tying up of capital stock of an affiliate with
the capital stock of a member bank. In favoring these limitations the board has in mind that
it may not be desirable to abolish all the existing relationships between member banks and
their affiliates, but that it is desirable to protect
the operations of the member banks from being
unduly influenced by their affiliates. Recent
experience has demonstrated that operations of
the affiliates at times have unfavorable effects
on the condition of member banks.
With these principles in mind it is recommended that the definition of affiliates be broadened by eliminating from paragraph (b) in lines
1 to 4, page 2, all references to specific types of
corporations, and by inserting other words
which would make the definition applicable not
only to corporations but to business trusts,
associations, or other similar organizations, regardless of the type of business in which they
are engaged. Certain other changes in the
phraseology of the definition are also suggested
for the purpose of clarifying them. The changes
suggested are as follows:
1
All references are to sections, pages, and lines of Senate bill 4115 in
the form in which it was introduced on Mar. 14 (calendar day, Mar. 17),
1932.

208

FEDERAL RESERVE BULLETIN

A PHIL, 1932

1. On page 2 change lines 1 to 4, inclusive, it from the privilege of using the system's
to read as follows:
credit facilities. In this connection attention
(b) The term "affiliate" includes any corporation, is invited to the fact that section 4 of the Fedbusiness trust, association, or other similar organiza- eral reserve act requires the chairman and
tion.
Federal reserve agent at each Federal reserve
2. In lines 9, 11, and 22 on page 2, strike out bank to "make regular reports to the Federal
the words "managing officers" and substitute Reserve Board" and to "act as its official
in lieu thereof the words " persons exercising representative for the performance of the functions conferred upon it by" the Federal reserve
similar functions."
3. In lines 9 and 18 on page 2 and in line 3 act,
It is recommended that section 3 of the bill
on page 3 strike out the words " annual meeting" and substitute in lieu thereof the word be changed to read as follows:
SEC. 3. The paragraph of section 4 of the Federal
"election."
SECTION 3

The Federal Reserve Board understands that
the principles underlying section 3 of the bill
are (1) that discounting at the Federal reserve
banks is a privilege and not a right; (2) that the
Federal reserve system has the responsibility
of keeping itself informed about the use of bank
credit; (3) that the power of Federal reserve
banks to withhold credit accommodations
should be used to discourage unsound banking
practices; and (4) that the Federal Reserve
Board should have power to suspend a member
bank from the use of Federal reserve credit
facilities. The board is in sympathy with
these principles.
For the purpose of accomplishing these
objectives a substitute for section 3 is suggested.
This substitute includes a revision of the paragraph of section 4 of the Federal reserve act
which now reads as follows:
Said board shall administer the affairs of said bank
fairly and impartially and without discrimination in
favor of or against any member bank or banks and
shall, subject to the provisions of law and the orders
of the Federal Reserve Board, extend to each member
bank such discounts, advancements and accommodations as may be safely and reasonably made with due
regard for the claims and demands of other member
banks.

In this revision [see below] the word "may"
is substituted for "shall" and the remaining
language of the section is made somewhat more
general than in the bill.
Member banks as a rale do not borrow to
relend, but to make up deficiencies in reserves
arising from withdrawals of deposits or from
other causes. It is therefore usually impossible
to say that a loan to a member bank is granted
for this or that specific purpose. However, it
would be possible to determine whether the
loan and investment policies of a bank are
inconsistent with the purposes of the Federal
reserve act, and, if so, to refuse accommodation
to such bank or in aggravated cases to suspend




reserve act, as amended, which begins with the words*
"Said board shall administer the affairs of said bank
fairly and impartially," is amended and reenacted to
read as follows:
"Said board of directors shall administer the affairs
of said bank fairly and impartially and without discrimination in favor of or against any member bank or
banks and may, subject to the provisions of law and
the orders of the Federal Reserve Board, extend to
each member bank such discounts, advancements and
accommodations as may be safely and reasonably made
with due regard for the claims and demands of other
member banks, the maintenance of sound credit conditions and the accommodation of commerce, industry
and agriculture. The Federal Reserve Board may
prescribe regulations further defining within the limitations of this act the conditions under which discounts,
advancements and accommodations may be extended
to member banks. Each Federal reserve bank snail
keep itself informed of the general character and amount
of the loans and investments of its member banks with
a view to ascertaining whether undue use is being made
of bank credit for the speculative carrying of or trading
in securities, real estate or commodities, or for any
other purpose inconsistent with the maintenance of
sound credit conditions; and, in determining whether
to grant or refuse advances, rediscounts or other credit
accommodations, the Federal reserve bank shall give
consideration to such information. The chairman of
the Federal reserve bank shall report to the Federal
Reserve Board any such undue use of bank credit by
any member bank, together with his recommendation.
Whenever, in the judgment of the Federal Reserve
Board, any member bank is making such undue use of
bank credit, the board may, in its discretion, after
reasonable notice and an opportunity for a hearing,
suspend such bank from the use of the credit facilities
of the Federal reserve system and may terminate such
suspension or may renew it from time to time.''
SECTION 4

It is recommended that this section be
omitted. It prohibits banks that belong to a
group or a chain from voting for Federal reserve
bank directors. The -wording of the section is
such as not to confine the prohibition to group
and chain banks, however, but to include all
banks that are not controlled entirely by locally
resident stockholders. Since the stock of
many important banks is widely owned throughout the country, this might restrict the voting

FEDERAL RESERVE BULLETIN

APRIL, 1932

privilege to smaller and less important banks
that are owned by local stockholders. It is to
be feared that this section would bar from participation in the selection of Federal reserve
directors many of the better managed banks.
SECTION 5

This section would amend the first paragraph
of section 7 of the Federal reserve act so that,
after the payment of expenses and dividends,
all of the net earnings of a Federal reserve bank
over and above any amounts necessary to
restore its surplus to the amount on December
31, 1931, would be paid to the Federal Liquidating Corporation. The amendment is also
worded in such a way as to prevent the payment of any dividends out of surplus and to
prevent the payment of dividends whenever
the surplus of a Federal reserve bank is less
than it was on December 31, 1931.
A different method of financing the liquidating corporation is proposed and will be discussed under the appropriate section. For this
reason a modification of section 5 is suggested
which would not change the provisions of the
present law in regard to the surplus of the
Federal reserve banks, but would authorize the
Secretary of the Treasury to use the franchise
tax received from the Federal reserve banks
for the purpose of supplementing the funds of
the corporation.
As changed, section 5 of the bill would read
as follows:
SEC. 5. The second paragraph of section 7 of Die
Federal reserve act, as amended, is amended to read as
follows:
"The net earnings derived by the United States from
Federal reserve banks shall, in the discretion of the
Secretary of the Treasury (1) be used to supplement
the gold reserve held against outstanding United
States notes, or (2) be applied to the reduction of the
outstanding bonded indebtedness of the United States
under regulations to be prescribed by the Secretary of
the Treasury, or (3) be invested in debentures or other
such obligations of the Federal Liquidating Corporation. Should a Federal reserve bank be dissolved or
go into liquidation, any surplus remaining, after the
payment of all debts, dividend requirements as hereinbefore provided, and the par value of the stock, shall
be paid to and become the property of the United
States and shall be similarly applied."
SECTION 6

209

it is recommended that section 6 of the bill be
changed to read as follows:
SEC. 0. Section 9 of the Federal reserve act, as
amended, is further amended by adding at the end
thereof two new paragraphs reading as follows:
""Whenever it shall be deemed necessary in order to
obtain adequate information regarding the relations
between any bank admitted to membership under the
provisions of this section and its affiliates or the effect
of such relations upon the management or condition
of such bank, it may be required under rules and regulations prescribed by the Federal Reserve Board to
obtain and furnish such reports as to any or all of its
affiliates as may be called for. Each such report shall
contain such information and shall be submitted at
such time as may be specified in the call therefor. Any
member bank which fails to furnish any report of an
affiliate when and as required shall be subject to a
penalty of $100 for each day during which such failure
continues. Such penalty may be assessed by the Federal Reserve Board, in its discretion, and, when assessed,
may be collected by the Federal reserve bank by suit
or otherwise.
"Any examiner selected or approved by the Federal
Reserve Board may examine any affiliate of any bank
admitted to membership under the provisions of this
section when it shall be deemed necessary in order to
inform the Federal Reserve Board or t lie Federal reserve
bank of the relations of such affiliate with such member
bank or of the effect of such relation* upon the management or condition of such member bank. The examiner making the examination of any such affiliate shall
have power to make a thorough examination of all the
affairs of the affiliate, and in doing so he shall have
power to administer oaths and to examine any of the
officers, directors, employees, and agents thereof under
oath, and to make a report of his findings to the Federal Reserve Board or to the Federal reserve bank.
The expenses of any examination made under the provisions of this paragraph may, in Die discretion of the
Federal Reserve Board, be assessed against the affiliate
examined and, when so assessed, shall be paid by the
affiliate examined. If such affiliate shall refuse to pay
such expenses or shall fail to do so within sixty days
after the date of such assessment, then such expenses
may be assessed against the affiliated member bank
and, when so assessed, shall be paid by sr.ch member
bank: Provided, hoircrcr, That, if the affiliation is with
two or more member banks, such expenses may be
assessed against, and collect eel from, any or all of such
member banks in such proportions as the Federal Reserve Board may prescribe. If any affiliate of a bank
admitted to membership under the provisions of this
section shall refuse to permit, an examiner to make an
! examination of such affiliate or refuse to give any in| formation required in the course of any such examination, the member bank with which it is affiliated shall
be subject to a penalty of not more than $100 for each
day that any such refusal shall cont inue. Such penalty
may be assessed by the Federal Reserve Board in its
discretion, and, when so assessed, may be collected by
the Federal reserve bank bv suit or otherwise."

In order that reports of affiliates of State |
SECTION 7
member banks may be required only when ;
deemed necessary by the Federal Reserve ; If this section is adopted in its present form,
Board and also in order that suitable provision ; certain changes should be made in the text for
may be made for the examination of affiliates j the purpose of clarification and of providing for
of State member banks when deemed necessary, ' certain matters not now covered in the bill




210

FEDERAL RESERVE BULLETIN

APRIL, 1932

which will be referred to at the appropriate
places.
For the purposes of clarification, it is suggested that subsection (b) be amended as
follows:
1. In lines 6, 11, and 12 on page 8 it is suggested that the word "appointive" be inserted
before the word "member."
2. In line 13 on page 8 it is suggested that
after the words "twelve years" there be
inserted the words "from the expiration of
the term of his predecessor."
In order that the domicile of the board may
be fixed for legal reasons, and in order that
provision may be made for a chairman of the
board, it is suggested that the following be
inserted at the beginning of line 23 on page 8:

reserve banks, in proportion to their capital stock and
surplus, assessments sufficient to defray all costs and
expenses incurred under the provisions of this
paragraph."
SECTION 8

The principal offices of the board shall be in the
District of Columbia. At meetings of the board the
governor shall preside as chairman, and, in his absence,
the vice governor shall preside. In the absence of
both the governor and the vice governor the board
shall elect a member to act as chairman pro tern.

SEC. 9. The Federal reserve act, as amended, is
amended by inserting between sections 23 and 24
thereof the following new section:
''Section 23(a). No national banking association
and no State member bank shall (1) make any loan or
any extension of credit to, or purchase securities under
repurchase agreement from, any of its affiliates, or (2)
invest any of its funds in the capital stock, bonds, or
other obligation of any such affiliate, or (3) accept the
capital stock, bonds, or other obligations of any such
affiliate as collateral security for advances made to any
individual, partnership, association, or corporation;
if, in the case of any such affiliate, the aggregate amount
of such loans or extensions of credit, repurchase agreements, investments, and advances against such collateral security will exceed 10 per centum of the capital
stock and surplus of such national banking association
or State member bank, or if, in the case of all such
affiliates, the aggregate amount of such loans, extensions of credit, investments, and advances against such
collateral security will exceed 20 per centum of the
capital stock and surplus of such national banking
association or State member bank: Provided, however,
That nothing in this section, or in any section of the
banking act of 1932, shall be construed as authorizing
member banks to invest their funds in stock otherwise
than as specifically authorized by existing law.
"Each loan or extension of credit to an affiliate
within the foregoing limitations shall be secured by
collateral having a market value at the time of making
the loan or extension of credit of at least 20 per centum
more than the amount of such loan: Provided, That
this requirement shall not apply to loans or extensions
of credit on the security of obligations of the United
States Government, Reconstruction Finance Corporation, Federal intermediate credit banks, or Federal
land banks, or on the security of notes, drafts, bills
of exchange, or acceptances eligible for discount or
purchase by Federal reserve banks: And provided
further, That when any loan is made on the security
of obligations of any State or political subdivision or
agency thereof such obligations shall have a market
value at the time of making the loan of at least 10
per centum more than the amount of such loan. A
loan or extension of credit to a director, officer, clerk,
or other employee or any representative of any such
affiliate shall be deemed a loan to the affiliate to the
extent that the proceeds of such loan are_used for the
benefit of, or transferred to, the affiliate.

If the authority of the Secretary of the
Treasury to assign quarters to the Federal
Reserve Board is repealed, it would seem that
the board should be authorized to purchase or
construct a building for its own use and that,
in the interest of convenience and efficiency,
space should be provided in such building for
the Comptroller of the Currency and his staff
and for the proposed Federal Liquidating Corporation. For this purpose it is suggested that
the following be added at the end of section 7
of the bill:
(d) Section 10 of the Federal reserve act, as amended,
is further amended by adding at the end thereof a
new paragraph reading as follows:
"The Federal Reserve Board is authorized and
empowered to acquire by purchase, condemnation, or
otherwise, a building located in the District of Columbia which will provide suitable and adequate offices
wherein the functions of the board and the Comptroller
of the Currency may be carried on, or to acquire by
purchase, condemnation, or otherwise such site located
in the District of Columbia as it may deem necessary
and to cause to be constructed thereon a building which
will provide suitable and adequate offices for the purposes of the Federal Reserve Board and the Comptroller of the Currency, and to maintain, repair, enlarge, or
remodel any building so acquired or constructed.
The Federal Reserve Board may assign offices in any
such building for the use of the Comptroller of the
Currency and the Federal Liquidating Corporation
without making any charge for the use of such offices,
and nothing contained in the act of June 3, 1864, or
in section 331 of the Revised Statutes (title 12, section
13, U. S. C ) , or in any other provision of law shall be
construed as preventing the Comptroller of the Currency from making full use of any offices so assigned
and from keeping therein the records and all other
valuable things belonging to his department. The
Federal Reserve Board may levy upon the Federal




The purpose of this section is to prevent the
undue use of bank loans for speculation in
securities. It is believed that this is sufficiently
covered in section 3, and therefore the omission
of section 8 is recommended.
SECTION 9

In accordance with the principles indicated
in the discussion of section 2 it is recommended
that section 9 of the bill be changed to read as
follows:

FEDEJRAL RESERVE BULLETIN

APRIL, 1932

"The provisions of this section shall not apply to any
affiliate of such national banking association or State
member bank, (1) the sole function of which is to hold
its banking house or houses and the site or sites
thereof, (2) the sole function of which is to conduct a
safe deposit business, (3) in the capital stock of which
such bank has been authorized to invest pursuant to
section 25 of the Federal reserve act, (4) organized
under section 25 (a) of the Federal reserve act, or (5)
transacting only the business of an agricultural credit
corporation or livestock loan company; but as to such
affiliates member banks shall continue subject to the
provisions of existing law limiting the amounts which
they may lend to, or invest in the stock or other obligations of, such colorations."
SECTION 10

This section of the bill deals with two separate and distinct subjects—(1) open-market
operations of the Federal reserve banks, and
(2) the proposed Federal Liquidating Corporation. For convenience, these subjects will be
discussed separately.
OPEN-MARKET

OPERATIONS

The first part of section 10 would establish
a Federal open-market committee along the lines
of the existing open-market policy conference,
which functions as a piece of administrative
machinery without specific legal status.
The statement in paragraph (b) of section 10
which says that "No Federal reserve bank shall
engage in open-market operations, except after
approval and authorization by the committee,"
appears to be too rigid. It deprives an individual reserve bank of all authority to make
purchases in the open market except after
obtaining the consent of both the board and the
committee. The open-market committee would
have no authority to act without approval of
the board and the board would have no authority
to act without approval of the committee. This
would result in the possibility of obstruction of
any system program and would tend to make
the operation of the Federal reserve system less
timely and less efficient.
Lines 19 to 23 in paragraph (c) on page 12 of
this section would incorporate into law a principle which the Federal Reserve Board has
adopted in practice.
The following substitute for the first part of
section 10 of the bill is suggested:
SEC. 10. Section 14 of the Federal reserve act, as
amended, is further amended by striking out the words
"Every Federal reserve bank shall have power;" and
inserting in lieu thereof the following:
"Subject to such regulations, limitations, restrictions,
and procedure as the Federal Ileserve Board may
prescribe, every Federal reserve bank shall have power."
Section 14 of the Federal reserve act, as amended,
is further amended by adding at the end thereof a
new paragraph reading as follows:




211

"The time, character, and volume of all purchases
and sales in the open market under this section shall
be governed with a view to accommodating commerce
and business and with regard to their bearing upon the
general credit situation of the country."
FEDERAL LIQUIDATING CORPORATION

The other part of section 10 deals with the
proposed Federal Liquidating Corporation, and
there is submitted a proposed substitute for
the section as drafted in the bill. The substitute would confine the benefits of the liquidating corporation to member banks. Provision
is made for assistance to nonmember banks in
the Reconstruction Finance Corporation act,
and it would render membership in the system
more attractive if the benefits of the corporation
were confined to member banks. In the substitute it is proposed that $100,000,000 of the
capital of the liquidating corporation be subscribed by the Treasury. This subscription to
capital may be considered as being derived
from the franchise tax previously paid to the
Treasury by the reserve banks. In addition,
it is proposed that the corporation be authorized
to issue debentures up to twice the amount of
its subscribed capital and that the Federal
reserve banks be given authority to purchase
those debentures up to one-fourth of their
surplus. This is not a propitious time to ask
the member banks to contribute to the liquidating corporation. The banks are going
through a very difficult period and to tax them
for this purpose would be a considerable
hardship on them.
In order to make the operations of the corporation more easily manageable, it is proposed
that the directorate be comprised of 5 members
instead of 14, as proposed in the bill.
For the reasons which have been stated the
following separate section on the Federal
Liquidating Corporation has been drafted:
SEC. 5A. The Federal reserve act, as amended, is
further amended by inserting between sections 28
and 29 thereof the following new section:
"SEC. 28A. (a) There is hereby created a Federal
Liquidating Corporation (hereafter referred to as the
'corporation') for the purpose of making loans on, or
purchasing and liquidating as hereinafter provided, all
or any part of the assets of any member bank for which
a receiver has been appointed. The term 'receiver7
as used in this section shall mean a receiver of a national
bank, and a receiver, liquidating agent, commission,
person, or other agency charged by State law with the
responsibility and the duty of winding up the affairs of
an insolvent State member bank.
"(b) The management of the corporation shall be
vested in a board of directors consisting of five members,
one of whom shall be the Comptroller of the Currency,
one a member of the Federal Reserve Board designated
by the board for the purpose, and three selected an-

212

FEDERAL RESERVE BULLETIN

APRIL, 1932

nually by the governors of the twelve Federal reserve tion and the receiver, subject to the approval of (1)
banks under such procedure as may be prescribed by the Comptroller of the Currency in the case of any
national bank, or (2) the person or agency designated
the Federal Reserve Board.
"(c) The corporation shall have a capital stock of by State law in the case of any State bank; except
$100,000,000, all of which shall be subscribed by the that, in no case shall the corporation make any loan
United States of America and payment for which shall or purchase any assets in an amount which in the
be subject to call in whole or in part by the board of opinion of the corporation shall not fully protect such
corporation and no such loan or purchase shall be
directors of the corporation.
"There is hereby authorized to be appropriated out of made in the case of State member banks unless expressly
any money in the Treasury not otherwise appropriated authorized by the law of the State in which the bank
the sum of $100,000,000 for the purpose of making is located. Receivers of national banks are hereby
payments upon such subscription. Receipts for pay- j authorized and empowered with the approval of the
merits by the United States for or on account of such Comptroller of the Currency to borrow on, or sell,
stock shall be issued by the corporation to the Secre- assets of banks of which they are receivers, and the
tary of the Treasury and shall be evidence of the stock proceeds of every such sale or loan shall be utilized
for the same purposes and in the same manner as other
ownership of the United States.
"Any Federal reserve bank may purchase and hold funds realized from the liquidation of the assets of such
any debentures or other such obligations of the cor- banks. The Comptroller of the Currency may, in his
poration in an amount noft exceeding one-fourth of discretion, pay dividends on proved claims at any time
after the expiration of the period of advertisement
the amount of its surplus fund.
made pursuant to section 5235 of the Revised Statutes,
" (d) The corporation shall have power—
and no liability shall attach to the Comptroller of the
"First. To adopt, alter, and use a corporate seal;
"Second. To have perpetual succession from the Currency or to the receiver of any national bank by
date of enactment hereof, unless it is sooner dissolved reason of any such payment for failure to pay dividends
to a claimant whose claim is not proved at the time of
by an act of Congress;
"Third. To make contracts; to purchase, lease, and any such payment. If the amount realized from any
hold or dispose of such real estate or personal property assets acquired by the corporation under the provisions
as may be necessary or convenient for the transaction j of this section exceeds the sum paid therefor or loaned
of its business;
j thereon, the corporation shall"make an additional pay"Fourth. To sue and be sued, complain and defend : ment to the receiver of the bank equal to the amount
of such excess, if any, after deducting the expenses of
in any court of competent jurisdiction;
"Fifth. To appoint, employ, and fix the compensa- j liquidating such assets and an amount equal to interest
tion of such officers, employees, attorneys, and agents i at the rate of 6 per centum per annum. All loans made
as shall be necessary for the transaction of the business by the corporation to receivers shall bear interest at
of the corporation, without regard to the provisions of the rate of 6 per centum per annum.
other laws applicable to the employment and com" (g) Money of the corporation not otherwise empensation of officers or employees of the United States, ! ployed shall be invested in securities of the Government
to define their authority and duties, to require bonds of the United States, except that for temporary
of them and fix the penalty thereof and to dismiss them periods, in the discretion of the board of directors,
at pleasure. Nothing in this or any other act shall be funds of the corporation may be deposited subject to
construed to prevent the appointment and compensa- check in any Federal reserve bank or with the Treastion as a director, officer, or employee of the corpora- urer of the United States. When designated for that
tion of any officer or employee of the United States in purpose by the Secretary of the Treasury, the corporaany board, commission, independent establishment, or tion shall be a depositary of public moneys, except
executive department thereof;
receipts from customs, under such regulations as may
"Sixth. To prescribe, amend, and repeal by its be prescribed by the said Secretary, and may also be
board of directors by-laws and rules and regulations employed as a financial agent of the Government.
not inconsistent with law governing the manner in It shall perform all such reasonable duties a depositary
which its general business may be conducted and the of public moneys and financial agent of the Governprivileges granted to it by law may be exercised and ment as may be required of it.
enjoyed;
" (h) The corporation is authorized and empowered
"Seventh. To exercise such incidental powers as to issue and to have outstanding at any one time in an
shall be reasonably necessary to carry out the powers amount aggregating not more than twice the amount
so granted.
of its capital, notes, debentures, bonds, or other such
" (e) The board of directors of the corporation shall obligations, to be redeemable at the option of the corpodetermine and prescribe the manner in which its l ration before maturity in such manner as may be
obligations shall be incurred and its expenses allowed | stipulated in such obligations, to bear such rate or
and paid. The corporation shall be entitled to the | rates of interest, and to mature at such time or times
free use of the United States mails in the same manner i as may be determined by the corporation: Provided,
as the executive departments of the Government. j That the corporation may sell on a discount basis
The corporation with the consent of any Federal | short-term obligations payable at maturity without
reserve bank or of any board, commission, independent ! interest. Obligations of the corporation may be seestablishment, or executive department of the Govern- I cured by assets of the corporation in such manner as
ment, including any field service thereof, may avail ' shall be prescribed by the board of directors. Such
itself of the use of information, services, and facilities i obligations may be offered for sale at such price or
thereof in carrying out the provisions of this act.
! prices as the corporation may determine. The said
" (f) Upon the application of the receiver of any obligations shall be fully and unconditionally guarmember bank, the corporation may in its discretion anteed both as to interest and principal by the" United
purchase the assets of such bank, in whole or in part, ! States, and such guaranty shall be expressed on the face
or make loans to the receiver on the security of such [ thereof. In the event that the corporation shall be
assets or any portion thereof, on such terms and con- unable to pay upon demand, when due, the principal
ditions as shall be agreed upon between the corpora- j of or interest on notes, debentures, bonds, or other such




APRIL, 1932

obligations issued by it, the Secretary of the Treasury
shall pay the amount thereof, which is hereby authorized to be appropriated, out of any moneys in the
Treasury not otherwise appropriated, and thereupon
to the extent of the amounts so paid the Secretary of
the Treasury shall succeed to all the rights of the
holders of such notes, debentures, bonds, or other such
obligations.
" (i) All obligations issued by the corporation shall be
exempt, both as to principal and interest, from all taxation (except estate or inheritance taxes) now or hereafter imposed by the United States, by any Territory,
dependency, or possession thereof, or by any State,
county, municipality, or local taxing authority. The
corporation, including its franchise, its capital, reserves, and surplus, and its income, shall be exempt
from all taxation now or hereafter imposed by the
United States, by any Territory, dependency, or possession thereof, or by any State, county, municipality, or
local taxing authority, except that any real property of
the corporation shall be subject to State, county,
municipal, or local taxation to the same extent according to its value as other real property is taxed.
11
(j) In order that the corporation may be supplied
with «euch forms of obligations as it may need for issuance under this act, the Secretary of the Treasury is
authorized to prepare such forms as shall be suitable
and approved by the corporation, to be held in the
Treasury subject to delivery, upon order of the corporation. The engraved plates, dies, bed pieces, and
other material executed in connection therewith shall
remain in the custody of the Secretary of the Treasury.
The corporation shall reimburse the Secretary of the
Treasury for any expenses incurred in the preparation,
custody, and delivery of such obligations.
44
(k) The corporation shall annually make a report of
its operations to the Congress as soon as practicable
after
the 1st day of January in each year.
44
(1) Whoever, for the purpose of obtaining any loan
from the corporation, or any extension or renewal
thereof, or the acceptance, release, or substitution of
security therefor, or for the purpose of inducing the
corporation to purchase any assets, or for the purpose of
influencing in any way the action of the corporation
under this act, makes any statement, knowing it to be
false, or wilfully overvalues any security, shall be
punished by a fine of not more than $5,000, or by imprisonment for not more than two years, or both.
"(in) Whoever (1) falsely makes, forges, or counterfeits any obligation or coupon, in imitation of or purporting to be an obligation or coupon, issued by the
corporation, or (2) passes, utters, or publishes, or attempts to pass, utter, or publish, any false, forged or
counterfeited obligation or coupon, purporting to have
been issued by the corporation, knowing the same to
be false, forged or counterfeited, or (3) falsely alters
any obligation, or coupon, issued or purporting to have
been issued bj* the corporation, or (4) passes, utters, or
publishes, or attempts to pass, utter, or publish as
true, any falsely altered or spurious obligation or coupon, issued or purporting to have been issued by the
corporation, knowing the same to be falsely altered or
spurious, shall be punished by a fine of not more than
$10,000 or by imprisonment for not more than five
years, or both.
" (n) Whoever, being connected in any capacity with
the corporation, (I) embezzles, abstracts, purloins, or
willfully misapplies any moneys, funds, securities, or
other things of value, whether belonging to it or
pledged, or otherwise entrusted to it, or (2) with intent
to defraud the corporation or any other body, politic
or corporate, or any individual, or to deceive any officer,




213

FEDERAL RESERVE BULLETIN

auditor, or examiner of the corporation, makes any
false entry in any book, report, or statement of or to
the corporation, or without being duly authorized
draws any order or issues, puts forth or assigns any
note, debenture, bond, or other such obligation, or
draft, bill of exchange, mortgage, judgment, or decree
thereof, shall be punished by a fine of not more than
$10,000 or by imprisonment for not more than five
years, or both.
"(o) No individual association, partnership, or corporation shall use the words ' Federal Liquidating Corporation,' or a combination of these three words, as the
name or a part thereof under which he or it shall do
business. Every individual, partnership, association, or
corporation violating this subdivision shall be punished
by a fine of not exceeding $1,000, or by imprisonment
not exceeding one year, or both.
"(p) The provisions of sections 112, 113, 114, 115,
116, and 117 of the Criminal Code of the United States
(U. S. C , title 18 ch. 5, sees. 202 to 207, inclusive),
insofar as applicable, are extended to apply to contracts
or agreements with the corporation under this act,
which for the purposes hereof shall be held to include
loans, advances, extensions and renewals thereof, and
acceptances, releases, and substitutions of security
therefor, purchases or sales of assets, and all contracts
and agreements pertaining to the same.
" (q) The Secret Service Division of the Treasury
Department is authorized to detect, arrest, and deliver
into the custody of the United States marshal having
jurisdiction any person committing any of the offenses
punishable under this section."
SECTION 11

Section 11 imposes a discriminatory rate
against member-bank collateral notes. It also
prescribes limitations on the use of such notes
by banks that may be making loans on stockexchange collateral. It is believed that the
purposes of this section are accomplished by
the proposed revision of section 3 and that no
further limitations along this line are desirable. The theory underlying this section,
namely, that there is a more direct connection
between member-bank collateral notes and the
use of reserve credit for speculative activity
than between other borrowings and this activity, is unfounded. Member banks borrow on
15-day notes, because of the greater convenience both to them and to the Federal reserve
j bank; and if this form of borrowing were pro! hibitcd or made more expensive, they would
! merely substitute the procedure of rediscount| ing eligible paper without any change in the
use of the proceeds. For these reasons it is
believed that this section would make the
operation of the Federal reserve banks less
efficient and more expensive.
The recommendation has been made by the
Federal Reserve Board in its annual reports
for several years that the maturity for which
advances may be made to member banks on
their promissory notes secured by paper which

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FEDERAL RESERVE BULLETIN

is eligible for discount be increased from 15 to
90 days. Such an amendment would be especially helpful to country banks, and it is
recommended that the following be substituted for section 11 of the bill:
SEC. 11. The seventh paragraph of section 13 of the
Federal reserve act, as amended, is amended and
reenacted to read as follows:
"Any Federal reserve bank may make advances for
periods not exceeding fifteen days to its member banks
on their promissory notes secured by the deposit or
pledge of bonds, notes, certificates of indebtedness or
Treasury bills of the United States; and any Federal
reserve bank may make advances for periods not exceeding ninety days to its member banks on their
promissory notes secured by such notes, drafts, bills of
exchange, or bankers' acceptances as are eligible for
rediscount or for purchase by Federal reserve banks
under the provisions of this act. All such advances
shall be made at rates to be established by such Federal
reserve banks, subject to the review and determination
of the Federal Reserve Board."
SECTION 12

Section 12 deals with relations of Federal reserve banks with foreign banks.. It is recommended that the words "subject to the powers
conveyed to and bestowed upon the Federal
open market committee by section 12A of this
act" be omitted. From the middle of line 18
on page 26 through the word "writing" in line
11 on page 27, the section is acceptable, but
the omission of the words "and control" in
line 19 on page 26 is suggested, in order to preserve the distinction between supervision and
operation.
It is recommended, therefore, that section 12
of the bill be amended as follows:
1. Strike out the following language in lines
16, 17, and 18 on page 26:
(g) Subject to the powers conveyed to and bestowed
upon the Federal open market committee by section
12A of this act;

2. Strike out the words "and control" in
line 19 on page 26; and
3. On page 27, line 11, insert a period after
the word "writing" and strike out everything
in line 11 after that word and all of lines 12, 13,
14, and 15.
SECTION 13

The principal feature of this section is that
it discontinues the distinction between time
deposits and demand deposits in so far as
reserve requirements are concerned. The distinction between these two types of deposits
has led to many abuses and has been a factor
in making possible a growth of bank credit
without a corresponding growth in reserves.
The proposal which would raise the require-




APRIL, 1932

ments on time deposits to the level of those on
demand deposits would increase reserve requirements by $132,000,000 a year for five years
with an" ultimate increase of $660,000,000.
Unless there were a contraction in the amount
of member-bank deposits, this increase would
result in an addition of about $230,000,000 to
the gold requirements of the Federal reserve
banks. It would be an influence in the direction of credit contraction without regard to the
course of business and credit and would be
particularly undesirable at this time. Furthermore, the increase would fall heaviest on banks
outside of the principal financial centers, which
have been discriminated against under the
existing reserve requirements both because,
owing to their distance from the cash facilities
of the Federal reserve banks, they are required
to carry relatively large amounts of cash in
vault, which under existing law does not count
as reserve, and because they are not in a position to take advantage of deductions in determining net deposits.
The proposal, therefore, would both increase
the burden of reserves and increase the inequalities in their present distribution.
Any thorough-going revision of section 19 of
the Federal reserve act should base required
reserves, in so far as practicable, upon the
activity of the business handled through each
bank, rather than on an arbitrary classification
of banks according to location. A proposal
submitted in the Report of the Committee on
Bank Reserves of the Federal Reserve System
embodies a method of calculating required
reserves which is believed to be sound in
principle and which would make fluctuations
in the volume of required reserves exert an
influence in the direction of sound credit
conditions and would also eliminate many
inequitable and unfair features of the present
law.
There is submitted a proposed substitute for
section 13 of the bill which incorporates the
proposals of the committee on bank reserves of
the Federal reserve system with slight modifications.
Section 13 includes two subjects not directly
related to bank reserves and not covered in the
report of the reserve committee, namely, a
prohibition against brokers' loans for the account of others and a provision subjecting the
market for Federal funds to regulation by the
Federal Reserve Board.
The purpose sought to be accomplished by
paragraph (d) is desirable, but it is believed
that the language used is too far-reaching.
It is suggested that the paragraph be changed

FEDERAL RESERVE BULLETIN

APRIL, 1932

so as to prohibit a member bank from acting
as a medium or agent of a nonbanking corporation or individual in making loans on the
security of stocks, bonds, and other investment
securities to brokers or dealers in such securities.
This suggestion is incorporated in paragraph
(n) of the proposed revision of section 13 of the
bill. It is not thought that a provision prohibiting a member bank from making loans to
any corporation or individual, if the proceeds
of such transaction are to be used directly or
indirectly for the purpose of making loans
protected by collateral security in favor of any
investment banker, broker, or member of any
stock exchange or any dealer in securities, would
be enforceable, as it is impossible to follow the
proceeds of loans once they have been granted.
Paragraphs (f) and (g) of the bill seek to
control the market for Federal funds by placing
limitations on the use of balances standing to
the credit of member banks upon the books of
the Federal reserve banks. It is not believed
that regulation of the market for Federal funds
by law is desirable. It is better to have these
liquid funds move freely where they are most
needed than to have them thrown on the call
market. The Federal reserve banks keep in
close touch with transactions in Federal funds
and a ruling of the Federal Keserve Board now
requires member banks to report purchases of
Federal funds as borrowed money.
The proposed substitute for section 13 of
the bill is as follows:
SEC. 13. Section 19 of the Federal reserve act
(United States Code, title 12, sections 461 to 466,
inclusive, and section 374), as amended, is further
amended and reenacted to read as follows:
"RESERVES OF MEMBER BANKS

''SEC. 19. (a) Each member bank shall establish
and maintain reserves equal to five per centum of the
amount of its net deposits, plus fifty per centum of
the amount of its average daily debits to deposit
accounts: Provided, That any member bank, at its
option, for any period not less than 90 days, may omit
any specific deposit account or accounts from such
computation of its reserve requirements if such
account or accounts are reported separately to the
Federal reserve bank and if a reserve of 50 per cent
is maintained against such account or accounts:
Provided, however, That, in no event, shall the aggregate
reserves required to be maintained by any member
bank exceed fifteen per centum of its gross deposits.
" (b) Each member bank located in the vicinity of a
Federal reserve bank or branch thereof shall maintain
not less than four-fifths of its total required reserves
in the form of a reserve balance on deposit with the
Federal reserve bank, and every other member bank
shall maintain not less than two-fifths of its total required reserves in the form of a reserve balance on deposit with the Federal reserve bank. The remainder
of the total required reserves of each member bank,
over and above the amount required to be maintained
110331—32




3

215

in the form of a reserve balance on deposit with the
Federal reserve bank, may, at the option of such member bank, consist of a reserve balance on deposit with
the Federal reserve bank, or of cash owned by such
member bank either in its actual possession or in
transit between such member bank and the Federal
reserve bank: Provided, That when, in its judgment
the public interest so requires, the Federal Reserve
Board may limit to an amount less than that permitted
hercunder the amount of cash which any member bank
or banks may count as reserve: Provided, however,
That, in prescribing such limitations, the Federal Reserve Board shall be guided by the general principle
that member banks should be permitted to count as
reserve, within the limitations of this section, as much
cash as they reasonably need in view of the character
of their business and their degree of accessibility to the
currency facilities of the Federal reserve banks.
" (c) The term 'gross deposits/ within the meaning
of this section, shall include all deposit liabilities of
any member bank whether or not immediately available for withdrawal by the depositor, all liabilities for
certified checks, cashiers', treasurers', and other
officers' checks, cash letters of credit, travelers' checks,
and all other similar liabilities, as further defined and
specified by the Federal Reserve Board: Provided,
however, That, in computing the amount of 'gross
deposits,' (1) amounts shown on the books of any member bank as liabilities of such bank payable to a branch
of such bank located in a foreign country or in a dependency or possession of the United States, and (2)
liabilities payable only at such a branch, shall be treated
as though said liabilities were due to or payable at a
nonmember I>ank.
" (d) The term 'net deposits,' as used in this section,
shall mean the amount of the gross deposits of any
member bank, as above defined and as further defined
by the Federal Reserve Board, minus the sum of (1)
all balances due to such member bank from other
member banks and their branches in the United States,
and (2) checks and other cash items in process of collection which are payable immediately upon presentation in the United States, within the meaning of these
terms as further defined by the Federal Reserve Board.
" (e) The term 'average daily debits to deposit
accounts,' as used in this section, shall mean the average daily amount of checks, drafts, and other items
debited or charged by any member bank to any and
all accounts included in gross deposits as above defined
and as further defined by the Federal Reserve Board,
except charges resulting from the payment of certified
checks and cashiers', treasurers', and other officers'
checks.
"(f) The term 'cash,' within the meaning of this
section, shall include all kind of currency and coin
issued or coined under authority of the laws of the
United States.
" (g) The term 'reserve balances/ as used in this
section, shall mean a member bank's actual net balance
on the books of the Federal reserve bank representing
funds available for reserve purposes under regulations
prescribed by the Federal Reserve Board.
"(h) The term 'vicinity of a Federal reserve bank
or branch thereof/ as used in this section, shall mean
the city in which a Federal reserve bank or branch
thereof is located, until such term is otherwise defined
by the Federal Reserve Board: Provided, That, with
respect to each Federal reserve bank and each branch
thereof, the Federal Reserve Board, from time to time,
in its discretion, may either (1) define a specific geographic area as comprising the vicinity of such Federal
reserve bank or branch thereof, within the meaning of

216

FEDERAL RESERVE BULLETIN

this section, or (2) compile a list of member banks
which shall be deemed to be located in the vicinity of
such Federal reserve bank or branch thereof, within
the meaning of this section, and add banks to, or remove banks from, such list, from time to time: Provided, however, That, in defining such areas and compiling such lists, the Federal Reserve Board shall be
guided by the general principle indicated in subsection
(b) hereof.
"(i) With respect to each member bank, the term
'Federal reserve bank,' as used in this section, shall
mean the Federal reserve bank of the district in which
such member bank is located.
"(j) The Federal Reserve Board is authorized and
empowered to prescribe regulations defining further
the various terms used in this act, fixing periods over
which reserve requirements and actual reserves may
be averaged, determining the methods by which reserve
requirements and actual reserves shall be computed,
and prescribing penalties for deficiencies in reserves.
Such regulations and all other regulations of the Federal Reserve Board shall have the force and efFect of
law and the courts shall take judicial notice of them.
"(k) Subject to such regulations and penalties as,
may be prescribed by the Federal Reserve Board, any
member bank may draw against or otherwise utilize
its reserves for the purpose of meeting existing liabilities:
Provided, however, That, whenever the reserves of any
member bank have been continuously deficient for
fourteen consecutive calendar days, the ^Federal reserve
agent or assistant Federal reserve agent of the district
in which such member bank is located shall send to each
director of such bank, by registered mail, a letter
advising him of such deficiency and calling attention
to the provisions of this subsection; and each director
of such bank who after receipt of such a letter, assents
to or acquiesces in the making of additional loans or
investments by such bank before the reserves of such
bank shall have been restored to the amount required
by this section, shall be held liable in his personal or
individual capacity for any and all losses sustained
by such bank on any such loans or investments.
" (1) All penalties for deficiencies in reserves incurred
under regulations prescribed by the Federal Reserve
Board pursuant to the provisions of this act shall be
paid to the Federal reserve bank by the member bank
against which they are assessed.
"(m) No member bank shall keep on deposit with
an}' State bank or trust company which is not a member
bank a sum in excess of ten per centum of its own paidup capital and surplus. No member bank shall act
as the medium or agent of a nonmember bank in applying for or receiving discounts from a Federal reserve
bank under the provisions of this act, except by permission of the Federal Reserve Board.
" (n) No member bank shall act as the medium or
agent of any nonbanking corporation, partnership,
association, business trust, or individual in making
loans on the security of stocks, bonds, and other
investment securities to brokers or dealers in stocks,
bonds, and other investment securities. Every violation of this provision by any member bank shall be
punishable by a fine of not more than $100 per day
during the continuance of such violation; and such fine
may be collected, by suit or otherwise, by the Federal
reserve bank of the district in which such member bank
is located.
"(o) National banks or banks organized under local
laws, located in Alaska or in a dependency or insular
possession or any part of the United States outside the
continental United States, may remain nonmember
banks, and shall in that event maintain reserves and




APRIL, 1932

comply with all the conditions now provided by law
regulating them; or said banks may, with the consent
of the Federal Reserve Board, become member banks
of any one of the Federal reserve districts, and shall in
that event take stock, maintain reserves, and be subject
to all the other provisions of this act.
" (p) All acts or parts of acts in conflict with this
section are hereby repealed only in so far as they are
in conflict with the provisions of this section."
There are hereby repealed the provisions of section 7
of the first Liberty bond act, approved April 24, 1917,
section 8 of the second Liberty bond act, approved
September 24, 1917, and section 8 of the third Liberty
bond act, approved April 4, 1918 (U. S. Code, title 31,
section 771), which read as follows:
"That the provisions of section fifty-one hundred
and ninety-one of the Revised Statutes, as amended by
the Federal reserve act, and the amendments thereof,
with reference to the reserves required to be kept by
national banking associations and other member banks
of the Federal reserve system, shall not apply to
deposits of public moneys by the United States in
designated depositaries."
This section shall become effective on the first day
of the seventh calendar month following the enactment
of this act.
SECTION 14

The first portion of this section down to
line 4 on page 33 is existing law. The sentence
in lines 4 to 8, inclusive, is new and would
interfere greatly with the financing of realestate transactions. When a time loan has
been made, there appears to be no warrant, in
the absence of default, for revising the valuations on which the loan is based; and this
provision, together with that in lines 4 to 9 on
page 34, would require the real estate on
which each such loan is based to be revalued
at least five times each year. It could not
reasonably be expected that real-estate loans
would be made or applied for under such
conditions.
The sentence in lines 17 to 20 on page 33
would classify as real-estate loans all unsecured
loans whose eventual safety depends upon the
value of real estate, thereby subjecting all such
loans to all the limitations or restrictions in this
section. This would produce confusion and
uncertainty in a large volume of loans and
would interefere with the extension of adequate
credit, particularly in the agricultural sections
of the country.
The remaining amendments in this section
make what appear to be unnecessary changes
in the proportion of the real-estate loans
permitted and propose, without segregation, to
give time depositors a preferred claim on all
real-estate loans and other assets of the bank
acquired under this section. Such a provision
would be difficult to administer and would be
unfair to the other depositors.

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FEDERAL RESERVE BULLETIN

APRIL, 1932

The sentence in lines 15 to 22 on page 34 is
existing law and is inconsistent with section 24
of the bill, which will be discussed later.
It would seem desirable to limit the amount
which banks may invest in bank premises,
but it is suggested, that this be accomplished
directly instead of indirectly.
It is recommended, therefore, that section 14
of the bill be stricken out and that the following
new section be substituted:

The modification of the units in which bank
stocks can be issued would create unnecessary
complications; and it is recommended that all
of section 17 be omitted, with the exception
of the sentence in lines 17 to 23 on page 38,
which should be made effective not less than
three years after enactment.
As modified, section 17 would read as follows:

SEC. 14. The Federal reserve act, as amended, is
amended by inserting between section 24 and section 25
thereof the following new section:
"SEC. 24(a). Except with the permission of the
Comptroller of the Currency, no national bank, and
except with the permission" of the Federal Reserve
Board, no State member bank, shall hereafter invest
in bank premises or in the stock or obligations of, or
in loans to, any corporation owning or holding its
bank premises a sum exceeding the amount of the
capital stock of such bank."

SEC. 17. Section 5139 of the Revised Statutes, as
amended, is amended by adding at the end thereof a
new paragraph reading as follows:
"After three years from the date of the enactment of
this act, no certificate representing the stock of any
such association shall represent the stock of any other
corporation, nor shall the ownership, sale, or transfer
of any certificate representing the stock of any such
association be conditioned in any manner whatsoever
upon the ownership, sale, or transfer of a certificate
representing the stock of any other corporation."

SECTION 15

SECTION 18

This section would make it necessary for
member banks to dispose of a large amount of
securities at this time which would be very unfortunate. Since it is aimed generally at investments in securities, it is believed that its
purpose is covered sufficiently by the proposed
substitute for section 3 of the bill.
The clause commencing in line 19 on page 35
apparently is intended to enable national
banks to compete more effectively with State
banks. Its tendency would be to lower the
standards of banking in the national banking
system to the standard of the State banks,
where more liberal powers are granted to State
banks by State law.
The definition of investment securities which
is contained in the law, as amended by the act
of February 25, 1927, would be stricken out
and apparently the comptroller would be given
unlimited power to prescribe his own definition except that stocks could not be included.
This modification is undesirable.
For the reasons stated it is recommended
that this section be omitted entirely.
SECTION 16

This amendment is believed to be desirable;
but it is recommended that it be strengthened
and that a means of evasion be eliminated by
striking out the exception in lines 17 to 21,
inclusive, on page 37, which would permit the
organization of national banks with a capital
of $25,000 in certain circumstances.




SECTION 17

The first part of this section would prohibit
any director, officer, or employee of any member bank from acting as a director, officer, or
employee of certain other specified classes of
business enterprises. It would be capable of
easy evasion and would become ineffective in
many cases. The latter part of the section
would prohibit any member bank from clearing
checks or doing the ordinary banking business
of a correspondent for any of the types of
business enterprises mentioned in this section.
The language of the section is so broad that it
would include banks within the classes of
business enterprises to which the prohibitions
of the section would apply. For example, all
interlocking bank directorates now expressly
authorized by law or permitted under certain
conditions would be prohibited, and one bank
would be prohibited from acting as a correspondent of another bank. It is therefore
recommended that this entire section be
omitted.
It has been clearly demonstrated that
affiliations between member banks and security companies have contributed to undesirable banking developments. There are,
however, difficulties in the way of accomplishing a complete divorce of member banks from
their affiliates arising from the fact that a law
intended for that purpose is likely to be susceptible of evasion or else to apply to many
cases to which it is not intended to apply.
Therefore the board is not prepared at this
time to make a definite recommendation, but

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FEDERAL RESERVE BULLETIN

submits, for the consideration of the Committee
on Banking and Currency, a substitute for
section 18 which is designed to provide for the
divorce of security affiliates from member
banks after three years:
SEC. 18. From and after three years from the date
of the enactment of this act, no member bank shall be
affiliated in any manner described in section 2 (b)
hereof with any corporation, association, business trust,
or other similar organization engaged principally in the
issue, flotation, underwriting, public sale, or distribution at wholesale or retail, of stocks, bonds, debentures,
notes, or other securities.
For every violation of this section the member bank
involved shall be subject to a penalty not exceeding
$1,000 per day for each day during which such violation
continues. Such penalty may be assessed by the
Federal Reserve Board, in its discretion, and, when so
assessed, may be collected by the Federal reserve bank
by suit or otherwise.
If any such violation shall continue for six calendar
months after the member bank shall have been warned
by the Federal Reserve Board to discontinue the same
(a) in the case of a national bank, all the rights, privileges, and franchises granted to it under the national
bank act may be forfeited in the manner prescribed in
section 5239 of the Revised Statutes, or, (b) in the case
of a State member bank, all of its rights and privileges
of membership in the Federal reserve system may be
forfeited in the manner prescribed in section 9 of the
Federal reserve act.
!

APRIL, 1932

panies and requiring all eligible State banks
controlled by them to be members of the
Federal reserve system.
It is therefore recommended that section 19
of the bill be changed to read as follows:

SEC. 19. Section 5144 of the Revised Statutes, as
amended, is amended, to read as follows:
" S E C . 5144. In all elections of directors and in
deciding all questions at meetings of shareholders each
shareholder shall be entitled to one vote on each share
of stock held by him, except that shares of its own stock
held by any national bank as trustee shall not be voted,
and shares owned or controlled by any affiliate, as
defined by the banking act of 1932, or by any officer,
director, employee, proxy, nominee, or representative
or agent thereof, shall not be voted unless such affiliate
shall have filed with the Comptroller of the Currency
an agreement in such form as may be prescribed by
him accepting, and agreeing to submit to and comply
with, all of the provisions of this section, and such
agreement shall not have been terminated. Shareholders may vote by proxies duly authorized in writing;
but no officer, clerk, teller, or bookkeeper of such association shall act as proxy; and no shareholder whose
liability is past due and unpaid shall be allowed to vote.
"Within a period of one year from the date of any
such agreement, each nonmember State bank owned
or controlled by such affiliate which is eligible for
membership in the Federal reserve system shall apply
for membership therein in the manner prescribed by,
and subject to the terms of, section 9 of the Federal
reserve act. If such application is approved by the
SECTIONS 19 AND 20
Federal Reserve Board, such bank shall become a
member of the Federal reserve system and shall
It is recommended that section 19 of the bill comply with all of the provisions of law applicable to
be combined with section 20 in the manner member banks. If such application is not approved
by the Federal Reserve Board, or if any such bank
hereinafter proposed; that the combined section shall
to become, or shall cease to be, a member
be known as section 19; and that a new section of thefail
Federal reserve system at any time while such
applicable to holding companies which own or agreement remains in effect, such affiliate shall divest
control State member banks be substituted for itself of all stock ownership or other interest in, or
control
of, such bank.
section 20.
1
'Except as otherwise provided herein, every such
Under the definition of "affiliate" contained affiliate, (1) on January 1, 1934, and at all times therein section 2 and under the provisions of sections after while such agreement remains in effect, shall
6, 27, and 28 of the bill, if amended in accord- possess, free and clear of any lien, pledge, or hypothecaany nature, readily marketable assets other
ance with the recommendations contained in tion of
bank stock, which shall not amount to less than
this report, all holding companies which control j than
lo per centum of the aggregate par value of bank
member banks and all banks owned or con- stocks held or owned by such affiliate, and (2) shall
trolled by such holding companies will be affili- reinvest in readily marketable assets other than bank
stock all net earnings over and above 6 per centum per
ates of such member banks and will be required annum
the book value of its own shares outstanding,
to make reports and submit to examinations until itsonreadily
marketable assets other than bank
whenever deemed necessary or advisable by the stocks shall amount to 25 per centum of the aggregate
Comptroller of the Currency, the Federal j par value of bank shares held or owned by it: Provided,
however, That, in computing the amount of readily
Reserve Board or examiners appointed by them; j marketable
assets, other than bank stock, which any
and therefore it is suggested that the provisions such affiliate is required to possess at any given time,
regarding examinations and condition reports credit shall be given to such affiliate for all contribuof holding companies be omitted from this sec- tions which it has made during the preceding three
years to banks owned or controlled by it at the time
tion and from the corresponding sections re- such
computation is made. The term 'contribution,'
garding holding companies which own or control as herein used, shall include all such gifts of money,
assets or other things of value to any such bank, all
State member banks.
amounts paid for worthless or doubtful assets
It is also suggested that there be inserted in such
from any such bank, and all such other
section 19 and in the proposed new section 20 purchased
similar amounts as the Comptroller of the Currency,
certain additional provisions providing for the in his discretion, may permit to be treated as conregulation and supervision of holding com- tributions.




APRIL, 1932

FEDERAL RESERVE BULLETIN

"If any such affiliate shall fail to comply with the
provisions of this section or with the provisions of any
agreement with the Comptroller of the Currency made
pursuant thereto, the comptroller, in his discretion,
may terminate such agreement.
" Any officer, director, agent, or employee of any such
affiliate, which has entered into an agreement with
the Comptroller of the Currency in accordance with
the provisions of this section, who shall make any false
entry in any book, report or statement of such affiliate
with intent in any case to injure or defraud such affiliate,
any member bank or any other company, body politic
or corporate, or any individual person, or with intent
to deceive any officer of such affiliate or of any member
bank, or the Comptroller of *he Currency, or any agen:
or examiner appointed to examine the affairs of such
affiliate, shall be deemed guilty of a misdemeanor and
upon conviction thereof in any district court of the
United States shall be fined not more than $5,000 or
shall be imprisoned for not more than five years, or
both, in the discretion of the court.
"No national bank shall (1) make any loan on the
stock of any affiliate which owns or controls such national bank directly or indirectly, (2) make any loan
to any affiliate which owns or controls such national
bank, directly or indirectly, on the security of any
shares of stock of any corporation owned or controlled
by such affiliate, or (3) be the purchaser or holder of
the stock of such affiliate; unless such security or purchase shall be necessary to prevent loss upon a debt
previously contracted in good faith; and any stock so
purchased or acquired shall be sold or disposed of at
public or private sale within two years from the date
of its acquisition.
" Unless there is an effect at the time an agreement
filed with the Comptroller of the Currency pursuant
to the terms of this section, any person, firm, corporation, association, business trust, or other organization,
which shall vote, or cause, direct, authorize, or permit
to l)c voted, the stock of any national bank owned or
controlled by any affiliate, or by any officer, director,
employee, proxy, nominee or representative or agent
thereof, shall be deemed guilty of a misdemeanor and,
upon conviction thereof in any district court of the
United States, shall be fined not more than $5,000 for
each such offense. Each vote cast shall constitute a
separate offense within the meaning of this paragraph."

It is recommended that, in lieu of section 20,
there be inserted a new section 20 making
similar requirements regarding holding companies which own or control State member
banks of the Federal reserve system; and it is
recommended that such new section 20 read
as follows:
SEC. 20. The Federal reserve act, as amended, is
further amended by inserting therein immediately
after section 9 thereof a new section reading as follows:
"Sue. QA. No State bank shall bo permitted to
become a member of the Federal reserve system unless
any affiliate of such State bank or trust company, as
defined in the banking act of 1.9^2, which owns or
controls such member bank directly or indirectly shall
have filed with the Federal Reserve Board an agreement in such form as may be prescribed by such board
accepting, and agreeing to submit to and comply with,
all of the provisions of this section; and no State bank
shall remain a member of the Federal reserve system
after one year from the date of the enactment of this
act unless anv affiliate of such State bank which owns




219

or controls such member bank directly or indirectly
shall have filed such an agreement with the Federal
Reserve Board.
"Within a period of one year from the date of any
such agreement, each nonmember State bank owned or
controlled by such affiliate which is eligible for membership in the Federal reserve system shall apply for
membership therein in the manner prescribed by, and
subject to the terms of, section 9 of this act. If such
application is approved by the Federal Reserve Board,
such bank shall become a member of the Federal
reserve system and shall comply with all of the provisions of law applicable to member banks. If such
application is not approved by the Federal Reserve
Board, or if any such bank shall fail to become, or cease
to be, a member of the Federal reserve system at any
time while such agreement remains in effect, such
affiliate shall divest itself of all of the stock ownership
or other interest in, or control of, such bank.
"Except as provided herein, every such affiliate (1)
on January 1, 1934, and at all times thereafter during
the membership in the Federal reserve system of any
State bank owned or controlled by it, shall possess,
free and clear of any lien, pledge or hypothecation of
any nature, readily marketable assets other than bank
stock, which shall not amount to less than 15 per cent
of the aggregate par value of bank stocks held or owned
by sucn affiliate; and (2) shall reinvest in readily
marketable assets other than bank stock all net earnings over and above 6 per centum per annum on the
book value of its own shares outstanding, until its
readily marketable assets, other than bank stocks,
shall amount to 25 per centum of the aggregate par
value of bank shares held or owned by it: Provided,
however, That, in computing tne amount of readily
marketable assets, otner than bank stock, which any
sucli affiliate is required to possess at any given time,
credit shall be given to such affiliate for all contributions
which it has made during the preceding three years to
banks owned or controlled by it at the time sucn computation is made. The term 'contribution,' as herein
used, shall include all such gifts of money, assets or
otlier things of value to any such bank, all such amounts
paid for worthless or doubtful assets purchased from
any such bank, and all such other similar amounts
as the Federal Reserve Board, in its discretion, may
permit to be treated as contributions.
"If any such affiliate shall fail to comply with the
provisions of this section or with the provisions of any
agreement with the Federal Reserve Board made
pursuant thereto, the said board, in its discretion, may
require any State member bank owned or controlled by
such affiliate to surrender its stock in the Federal reserve bank and to forfeit all rights and privileges of
membership in the Federal reserve system as provided
in section 9 of this act.
"Any officer, director, agent, or employee of any
such affiliate which has filed an agreement with the
Federal Reserve Board, as provided in this section, who
shall make any false entry in any book, report, or statement of such affiliate with intent in any case to injure
or defraud such affiliate, any member bank or any other
company, body politic or corporate, or any individual
person, or with intent to deceive any officer of such
affiliate or of any member bank, or the Federal Reserve
Board, or any agent or examiner appointed to examine
the affairs of such affiliate, shall be deemed guilty of a
misdemeanor, and upon conviction thereof in any district court of the United States, shall be fined not more
than $5,000 or shall be imprisoned for not more than
five years, or both, in the discretion of the court.

220

FEDEKAL KESERVE BULLETIN

"No State member bank shall (1) make any loan on
the stock of any affiliate which owns or controls such
State member bank directly or indirectly, (2) make an}'
loan to any affiliate which owns or controls such State
member bank, directly or indirectly, on the securit}^ of
any shares of stock of any corporation owned or controlled by such affiliate, or (3) be the purchaser or holder of
the stock of such affiliate; unless such security or purchase shall be necessary to prevent loss upon a debt
previously contracted in good faith; and any stock so
purchased or acquired shall be sold or disposed of at
public or private sale within two years from the date
of its acquisition."
SECTION 21

If the Committee on Banking and Currency
decides to recommend the enactment of section
21 of the bill in substantially its present form,
it is suggested that paragraph (d) of section
5155 of the Revised Statutes (which forbids the
establishment of any branch in a place with a
population of less than 25,000), be amended in
order that small communities may not be
denied the banking facilities which otherwise
might be provided under this section. It is
also suggested that the second paragraph of
section 9 of the Federal reserve act be amended
so as to place State member banks on the same
basis as national banks with respect to branches
either in this country or in foreign countries.
The sentence commencing in line 7 on page
46 of the bill might be substituted for paragraph (d) of section 5155 of the Revised Statutes; and the following might be added at the
end of the second paragraph of section 9 of the
Federal reserve act:
Provided, however, That nothing herein contained
shall prevent any State member bank from establishing
and operating branches in the United States or any
dependency or insular possession thereof or in any
foreign country, on the same terms and conditions and
subject to the same limitations and restrictions as are
applicable to the establishment of branches by national
banks.
SECTION 23

APRIL, 1932

would place member banks at a disadvantage
in competition with nonmember banks. It is
therefore recommended that this section be
omitted.
SECTION 25

In the interests of clarity it is recommended
that subsection (a) of section 25 of the bill be
amended by striking out the period at the end
thereof (i. e., at the end of line 8 on page 48)
and inserting the following: "in which such
corporation owns or controls a majority
interest."
It is recommended that the remainder of
section 25 of the bill (p. 48, lines 9 to 25, and
p. 49, lines 1 to 21) be omitted entirely.
The first part of paragraph (b) (lines 9 to 18,
inclusive, on p. 48) would seem to be unnecessary because the exceptions in section 5200 are
not applicable to borrowers of the kind described, except the eighth exception, which applies only to loans secured by Government
securities.
In so far as the remainder of paragraph (b)
and the provisions of paragraph (c) relate to
affiliates of national banking associations, the
exact meaning of the restrictions is not clear;
but these provisions appear to be in conflict
\yith those of section 9 of the bill, and the
limitations on loans which may be made by
national banking associations to their affiliates
are covered adequately by the proposed substitute for section 9. This substitute contains
a limitation on loans that may be made to one
affiliate and a separate limitation on the aggregate amount of loans that may be made to all
affiliates of the same member bank.
In the comments upon the definition of the
term "affiliate" in section 2 of the bill certain
principles were indicated which have been
applied in the recommendations with respect
to various sections of the bill relating to affiliates; and it is believed that these recommendations arc sufficient.

This section is desirable; but, in view of the
fact that the Federal reserve act authorizes
different rates of discount for different classes
of paper, it is recommended that this section
SECTION 26
be amended by striking out the word "of" in
It is recommended that this section be
line 2 on page 47 and inserting in lieu thereof
the words "on 90-day commercial paper in omitted entirely.
It would apply to all loans on "collateral
effect at."
security"
regardless of the nature of the seSECTION 24
curity, and would nullify certain provisions of
While it is recognized that certain evils arise section 5200 of the Revised Statutes, including
from the competitive bidding for deposits those permitting national banks to make loans
through the payment of unduly high rates, it (1) in amounts not exceeding 25 per cent of
is believed that it is undesirable to further their capital and surplus on the security of
regulate by law the rates of interest which ma}^ shipping documents or chattel mortgages on
be paid on deposits, especially since to do so livestock, and (2) in amounts not exceeding 50




per cent of their capital and surplus on the
security of shipping documents, warehouse receipts, or other such documents covering
readily marketable nonperishable staples. It
would greatly curtail the amount of credit
which could be extended by banks in agricultural communities to farmers, cattlemen, and
dealers in cotton, grain, and other agricultural
com modi ties.
SECTION 27

In order that reports of affiliates of national
banks may be required only when deemed
necessary and to clarify the provisions of the
bill with respect to such reports, it is recommended that section 27 of the bill be amended
to read as follows:
SEC. 27. Section 5211 of the Revised Statutes of the
United States, as amended, is further amended by
adding at the end thereof the following new paragraph:
"Whenever it shall be deemed necessary in order to
obtain adequate information regarding the relations
between any national bank and its affiliates, or the
effect of such relations upon the management or condition of such bank, it may be required under rules
and regulations prescribed by the Comptroller of the
Currency to obtain and furnish such reports as to any
or all of its affiliates as may be called for. Each such
report shall contain such information and shall be
submitted at such time as ma}' bo specified in the
call therefor."
SECTION 28

Section 28 of the bill purports to authorize
examinations of affiliates of both national banks
and State member banks; but it is doubtful
whether it would accomplish this purpose as to
State member banks, because it amends the
first paragraph of Section 5240 of the Revised
Statutes so as to provide for such examinations
to be made by examiners acting under the
jurisdiction of the Comptroller of the Currency,
whereas section 9 of the Federal reserve act, as
amended by the act of June 21, 1917, exempts
State member banks from examination by the
Comptroller of the Currency under the provisions of the first two paragraphs of section
5240 of the Revised Statutes. It has been
recommended above that section 6 of the bill
be amended so as to provide for examinations
of affiliates of State member banks; and it is
recommended that section 28 of the bill be
amended to read as follows:
^ SEC. 28. Section 5240 of the Revised Statutes of the
United States, as amended, is further amended by
adding at the end thereof a new paragraph reading as
follows:
"Examiners appointed under the provisions of the
first paragraph of this section may examine any affiliate
of a national bank whenever it shall be deemed necessary in order to obtain adequate information concerning
the relations of such affiliate with such national bank




221

FEDEKA.L RESERVE BULLETIN

APRIL, 1932

or the effect of such relations upon the management
or condition of such national bank. The examiner
making the examination of any affiliate of a national
bank shall have power to make a thorough examination
of all the affairs of the affiliate, and in doing so he shall
have power to administer oaths and to examine any of
the officers and agents thereof under oath and to make
a report of his findings to the Comptroller of the
Currency. The expense of examinations provided for
in this paragraph may be assessed by the Comptroller
of the Currency upon the affiliates examined in proportion to assets or resources held by the affiliates upon the
dates of examination of the various affiliates. If any
such affiliate shall refuse to pay such expenses or shall
fail to do so within sixty days after the date of such
assessment, then such expenses may be assessed against
the affiliated national bank and, when so assessed, shall
be paid by such national bank: Provided, however, That,
if the affiliation is with two or more national banks, such
expenses may be assessed against, and collected from,
any or all of such national banks in such proportions as
the Comptroller of the Currency may prescribe. If any
affiliate of a national bank shall refuse to permit an
examiner to make an examination of the affiliate or
shall refuse to give any information required in the
course of any such examination, the national bank
with which it is affiliated shall be subject to a penalty
of not more than $100 for each day that any such refusal
shall continue. Such penalty may be assessed by the
Federal Reserve Board, in its discretion, and, when
assessed, may be collected by the Federal reserve bank
by suit or otherwise."
SECTION 29

Section 29 provides for the removal of officers
or directors of national banks under certain
circumstances. It is believed that there should
be some means by which in extreme cases
unsatisfactoiy management could be corrected
through the removal of officers and directors
responsible there!"or.
It is believed however that the power of
removal should be vested in the Federal Reserve Board as a whole rather than in a special
committee consisting of three officials, one of
whom is the person bringing the charges against
the accused officer or director; and in order to
afFord adequate additional protection to the
interests of the banks and their officers and
directors, certain other changes in this section
should be made. It is therefore recommended
that section 29 be amended to read as follows:
SEC. 29. Whenever, in the opinion of the Comptroller
of the Currency, any director or officer of a national
bank, or of a bank or trust company doing business in
the District of Columbia, or whenever, in the opinion
of a Federal reserve agent, any director or officer
of a State member bank in his district, shall have continued to violate any law relating to such bank or shall
have continued unsafe or unsound practices in conducting the business of such bank after having been warned
by the Comptroller of the Currency or the Federal
reserve agent, as the case may be, to discontinue such
violations of law or such unsafe or unsound practices,
the Comptroller of the Currency or the Federal reserve

222

FEDERAL RESERVE BULLETIN

agent, as the case may be, may certify the facts to the
Federal Reserve Board. In any such case the Federal
Reserve Board may cause notice to be served upon such
director or officer to appear before such board to show
cause why lie should not be removed from office. A
copy of such order shall be sent to each director of the
bank affected by registered mail. If, after granting
tne accused director or officer a reasonable opportunity
to be heard, tne Federal Reserve Boardfindsthat he has
continued to violate any law relating to such bank or
has continued unsafe or unsound practices in conducting tne business of such bank after having been warned
by the Comptroller of the Currency or the Federal
reserve agent to discontinue such violation of law or
such unsafe or unsound practices, the Federal Reserve
Board, in its discretion, may order that he be removed
from office. A copy of such order shall be served upon

APRIL, 1932

such director or officer. A copy of such order shall also
be served upon the bank of which lie is a director or
officer, whereupon such director or officer shall cease
to be an officer or director of such bank: Provided,
however, That such order and the findings of fact upon
whicn it is based shall not be made public or disclosed
to anyone except to the officer or director involved
and the directors of the bank involved, and no such
finding or order nor the evidence upon which it is based
shall be produced in any court of law except as evidence
to punish violations of law under this section. Any
such director or officer upon whom any such order has
been served as herein provided and who thereafter
participates in any manner in the management of such
bank shall be fined not more than $5,000 or imprisoned
for not more than 5 years, or both, in the discretion of
t^e court.

STATEMENT OF FEDERAL ADVISORY COUNCIL ON THE GLASS BILL (S. 4115)
MARCH 29,

1932.

The Federal Advisory Council has given
careful consideration to Senate bill 4115. It
is of the opinion that the present is an inopportune time to raise many of the issues presented in this proposed legislative measure.
Reforms in our banking system may be desirable, but such should be made at a time when
the country has passed through the present
crisis and when there is no danger that legislative enactments will retard recovery and add
to the existing difficulties with which banks
are confronted.
The council feels that the effect of this proposed measure is likely to destroy the benefits
of the Glass-Steagall Act, the Reconstruction
Finance Corporation act, and similar measures.
If the bill should be enacted into law it would
necessitate a wholesale liquidation of securities,
which would most certainly cause a further
decline in the prices of all securities. Such
deflation would work extreme hardship not
merely upon banks but upon all holders of
securities in this country, and especially upon
those who have borrowed from banks and who
are finding difficulties even at present in meeting their obligations.
It must also be pointed out that, in the opinion of the council, the thesis apparently underlying this measure that loans upon securities
are in general undesirable and should be drastically limited would undermine the customary
system of capital financing which has been an
inherent part of the present industrial and
financial system almost from its beginning.
Without the flotation of securities which have
been financed directly or indirectly by banks,
it would have been impossible to build up the
large enterprises which have contributed so
much to the progress of industrial development in this country.




In addition to the above general expression
of opinion, the Federal Advisory Council
desires to point out, in some detail, its specific
objections to certain features of the bill.
1. Control of affiliates.—The Federal Advisory Council is in accord with the purpose
sought to be achieved in section 20 and believes
that a control of affiliates is desirable.
The definition of affiliates in section 2, however, is much too broad and comprehensive.
It brings within the provisions of the act any
corporation, regardless of its business, which
may happen to have a majority of its executive
committee, directors, or managing officers
directors of a member bank.
Section 9 limits the sum which a parent member bank may lend to an affiliate to 10 per cent
of the capital and surplus of the parent bank,
and such loans must be secured by 120 per
cent of listed exchange securities or 100 per
cent of either eligible paper or savings banks'
securities, neither of which would be for the
most part in the possession of an affiliate,
unless it happened to be a bank. Furthermore, this provision would seem to bar the
acceptance of real-estate mortgages as collateral
from an affiliate upon the part of those banks
located in States where there are no laws
regulating the investments of savings banks.
Likewise, commodity or livestock paper, unless
its maturity is such as to make it eligible,
could not be used as collateral for a loan made
to an affiliate.
The Federal Advisory Council also believes
that the provision in section 25, page 49, paragraph 2, which refers to the sale for cash of
the stock of an affiliate within a 3-year period
is not at all clear. If this means that the stock
of the affiliate held by the parent institution
must be sold for cash away from the bank, in
other words divorcing the affiliate from control

FEDERAL RESERVE BULLETIN

APRIL, 1932

223

by the bank, it will create a distinct hardship, undesirable, entirely aside from other features
as there are large numbers of such affiliates in in this section to which reference will be made
existence to-day whose compulsory liquidation hereafter.
would cause serious financial losses. ApparThe Federal Advisory Council believes that
ently this section is in conflict with some of the subdivisions F and G of section 13 give power
provisions of section 20.
to the Federal Reserve Board to regulate what
2. Centralization of power.—It was the origi- is a purely routine loan operation of a member
nal intention of the Federal reserve act to bank. The ability of member banks to trade
decentralize the banking power in this country in Federal reserve funds tends to maintain a
by establishing 12 autonomous regional Federal greater degree of liquidity in the general
reserve banks. The Federal Reserve Board banking situation than would otherwise be the
itself was planned originally to be largely a case. In this connection attention is called to
supervising and coordinating body. The pro- the ever increasing restrictions upon, and to
posed act, however, tends to increase radically the diminishing scope of, loaning operations of
the power of the Federal Reserve Board at the banks. This results in increasing unnecessary
expense of the individual Federal reserve banks balances on the part of member banks and
and to make of the Federal reserve system in makes it more difficult for them to employ
effect a centralized banking institution. In funds profitably.
support of this statement attention is called
3. Liquidating corporation.— In general the
to the following sections.
3ouncil indorses the idea of a liquidating
Section 3 delegates the power of direct action corporation. It is, however, not in harmony
to the Federal Reserve Board, which even if with the provisions as set forth under section
practical would result in so embarrassing the 10 (sec. 12B) of the proposed act. The council
operations of member banks as to lead to the is of the opinion that such a corporation as is
elimination of important and necessary activities proposed should be financed entirely by Govor to the virtual surrender of individual bank ernment money, as is intended to be done in
the case of nonmember banks. Furthermore,
management to the Federal Reserve Board.
Section 8 gives power to the Federal Reserve the council believes that it might be well to
Board to fix the percentage of the capital and consider the possibility of creating 12 agencies,
surplus which any member bank may lend in one in each of the Federal reserve districts,
the form of collateral loans, and it is within the rather than seeking to create a single body for
power of the Federal Reserve Board to change the whole country. Such 12 agencies might
this percentage at any time upon 10 days' then be placed under the control and guidance
notice and to direct any member bank to refrain of the Federal Reserve Board or some other
from an increase of its security loans for any coordinating group. In no event does the
period up to one year. This would be a tre- council believe it proper to require member
mendous increase in the powers of the Federal banks to furnish the funds needed for such a
Reserve Board and would introduce an element corporation without at the same time giving
of uncertainty in the minds of those directing the member banks control of such a corporation
any given member bank as to when the bank in for which they are to furnish the capital from
question might be subjected to the direct action out of their own resources. The council
furthermore suggests the possibility of having
authorized in this section.
The power of control by the Federal Reserve ! the activities of a Federal Liquidating CorporaBoard over the actions of the Federal open- j tion taken over by the Reconstruction Finance
market committee, as authorized in section 10, !Corporation.
might possibly tend to slow up open-market j 4. Increase of reserves.—The Federal Advioperations at times when quickness of action sory Council presumes that the requirement of
might be absolutely essential in order to bring larger reserves as set forth in section 13 of the
proposed act is intended to provide for greater
about desired results.
In section 11 the Federal Reserve Board is liquidity on the part of banks. The council
empowered to cancel the right of any member believes, however, that the experience of the
bank to borrow on so-called 15-day paper and last 10 years has clearly indicated that there is
to declare existing loans due if such a member little or no relation between reserves and
bank has failed to heed a notice instructing it liquidity. In the opinion of the council
not to increase loans on collaterial security. liquidity is the result of careful and prudent
It would appear to the Federal Advisory bank management and is measured by the
Council that this endows the Federal Reserve character of the assets held by the bank. FurBoard with an arbitrary power which is highly thermore, the imposition of additional reserves
lio:t3l—32




4

224

FEDERAL RESERVE BULLETIN

will reduce available resources in the member
banks at a time when these are largely needed,
while at the same time they will bring no
advantage to the system, the resources of
which have been and are ample to take care of
changing financial situations. The effect of
this requirement would also be to tie up an
additional volume of gold as a reserve against
increased member-bank deposits in the Federal
reserve banks without any apparent justification.
5. Segregation of time deposits.—The Federal Advisory Council regards the provisions in
section 14 of the proposed act, intended to
segregate the assets behind time deposits from
those against other deposits, as likely to lead to
undesirable results. In the opinion of the
council this provision will lead either to the
withdrawal of demand deposits or the diversion
of demand deposits into time deposits. It believes that the increase of investment in real
estate foreseen in this section will tend to
reduce the liquidity of banks. There is also
imposed upon the Comptroller of the Currency
a duty which burdens him with tremendous
responsibility, in so far as he is required to
specify the type of property and the securities
in which one-half of the time deposits of the
member bank may be invested in the absence
of State laws governing the investment of such
funds. It has been the experience of a number
of members of the council that the absence of
restriction in respect to the investment of time
deposits has produced a greater degree of
liquidity in banks than can possibly be accomplished under the permissions granted in this
section.
The council feels that the views here setforth in regard to section 14 might be much
amplified. In its opinion the most important
effect of this section would be to bring about a
disruption of the present credit structure of
the country. Many banks in this country
having a large percentage of time deposits use
these funds for the purpose of aiding commerce,
industry, and agriculture in their respective
communities. These would be compelled under
the provisions of section 14 to liquidate a large
proportion of these loans and invest the funds
so obtained in real estate or specified securities.
6. Fifteen-day paper.—Section 11 penalizes
borrowers on so-called 15-day paper. In the
opinion of the Federal Advisory Council such
a provision would make Government bonds a
much less desirable form of investment for
member banks. It would handicap the United
States Treasury in its necessary financing,
increasing the rate on Government securities




APRIL, 1932

and thereby the interest rate on all other classes
of securities, and thus depreciate the market
price of securities generally. It should also be
pointed out that the ability of member banks
to borrow on their promissory notes for a
period of not exceeding 15 days is essential in
periods of depression when sufficient eligible
paper is not available for rediscount.
7. Limitation of interest on deposits.—The
limitation of interest which member banks
may pay upon deposit balances, provided for
in section 24 of the proposed act, places such
banks in unfair competition with nonmember
banks not so restricted. It should be remembered that money is a commodity like any other
and that member banks should be free to pay
the rates necessary to hold their deposits.
8. Branch and group banking.—In reference
to section 21 and other sections of the proposed
act referring to branch or group banking, the
council begs leave to refer to the recommendations which it made on September 15, 1931, a
copy of which is appended hereto [see below].
9. Collateral loans and securities.—In the
general statement the Federal Advisory Council has already expressed its views regarding the
desire to limit collateral loans. It wishes here,
however, to discuss somewhat more in detail the
provisions in sections 8, 11, 13, 15, etc., all of
which deal in whole or in part with the control
of the volume of collateral loans and the volume
of securities held by member banks. These
sections give arbitrary powers of control and
the right to impose penalties to the Federal
Keserve Board. These sections deal with control of volume of collateral loans and volume
of securities held by member banks and place
arbitrary powers of control and penalties in the
Federal Reserve Board. The enforcement of
the mandatory provisions of these sections will
result in the enforced liquidation and to the
detriment of general business. The council
believes that such liquidation will retard if it
docs not entirely defeat the beneficent effects
that may be expected to be realized as a result
of the Glass-Stengall bill and the Reconstruction Finance Corporation act. The council
does not share the view of the proponents of the
bill that the underlying cause of either bank
disasters or depression is directly related to the
volume of collateral loans or the volume of
securities held by banks. These did not, and
do not now, impair the ability of member banks
properly to care for those types of loans the
proceeds of which go more directly into commerce, industry, and agriculture.
In conclusion the council calls attention to
the fact that the bill, if enacted into law, would

APRIL, 1932

FEDERAL RESERVE BULLETIN

in effect place an undeserved stigma upon the
flotation and selling of securities and make it
almost impossible for banks to do business with
dealers in securities. There would seem to be
no justification whatsoever for such drastic
action.
Finally, the council believes that it is not
possible to promote activity in commerce,
industry, and agriculture under an easy-money
and credit policy and at the same time prevent
people by admonition or restriction from buying
securities which are being made attractive by
this very activity.
STATEMENT OF SEPTEMBER 15, 1931

I. Group and chain banking.—No national
bank should be permitted to become a part of
a group banking system except on the condition that all other banks in the group are
members of the Federal reserve system to the
end that the Federal Government have visitorial powers over the entire group. More
specifically:
(a) No corporation should be permitted to
own in excess of 20 per cent of the stock of a
national bank if it owns at the same time in
excess of 20 per cent of the stock of a State
bank unless said State bank is a member of the
Federal reserve system.
(6) The Comptroller of the Currency should
be given visitorial power over any corporation

225

owning in excess of 20 per cent of the stock of a
national bank.
(c) No national bank should be permitted to
make a loan on the security of the stock of a
corporation owning in excess of 20 per cent of
the stock of the lending bank.
II. Branch banking.—A. The McFadden Act
should be amended to permit national banks in
important commercial and financial centers to
establish branches in the area that is economically and financially tributary to such centers
without regard to State boundaries or to State
banking laws. The privilege should be limited
to banks in cities serving a territory sufficient
to provide economic diversification. The area
within which banks located in such cities may
extend their branches should be defined by a
committee consisting of the Comptroller of the
Currency, the Secretary of the Treasury, and
the Governor of the Federal Reserve Board.
Banks permitted to have branches in an area
should have capital adequate to their deposit
liabilities, the minimum not to be less than
$1,000,000. The extension of branches Should
be subject to the approval of the Comptroller
of the Currency.
B. The national bank consolidation act
should be amended to permit any bank within
the branch-bank area to consolidate under
national charter with the approval of the
Comptroller of the Currency.

FIRST QUARTERLY REPORT OF RECONSTRUCTION FINANCE CORPORATION

The Reconstruction Finance Corporation
made its first quarterly report to Congress on
April 1, 1932. The text of the report, together
with a table showing aggregate loans
to each
class of borrower, is given herewith:l
Pursuant to the provisions of section 15 of
the Reconstruction Finance Corporation Act,
we have the honor to submit the first quarterly
report of the corporation covering its operations
to and including March 31, 1932.
As the act was approved by the President on
January 22, 1932, and the board of directors of
the corporation was organized on February 2,
the operations reported herein coyer a period of
only two months. During this time the board
has set up its central organization in Washington and established 33 separate agencies in
various sections of the country. These agencies
are located at Atlanta, Ga.; Birmingham, Ala.;
Boston, Mass.; Charlotte, N. C ; Chicago, 111.;
Cleveland, Ohio; Dallas, Tex.; Denver, Colo.;
i The report contains, in addition, the following tables: Number of
borrowers, by States and classes; statement of condition as of Mtir. 31,
1932; names and compensation of directors, officers, and employees
receiving from the corporation more than $400 per month.




Detroit, Mich.; El Paso, Tex.; Helena, Mont.;
Houston, Tex.; Jacksonville, Fla.; Kansas City,
Mo.; Little Rock, Ark.; Los Angeles, Calif.;
Louisville, Ky.; Memphis, Tenn.; Minneapolis,
Minn.; Nashville, Tenn.; New Orleans, La.;
New York, N. Y.; Oklahoma. City, Okla.;
Omaha, Nebr.; Philadelphia, Pa.; Portland,
Oreg.; Richmond, Va.; St. Louis, Mo.; Salt
Lake City, Utah; San Antonio, Tex.; San Francisco, Calif.; Seattle, Wash.; Spokane, Wash.
Each of these agencies is in charge of a
manager, selected by the board, who receives
applications for loans and transmits them to
Washington with his recommendations. Competent local advisory committees, the members of which serve without compensation,
also have been appointed by the board to
assist the managers. The membership of these
advisory committees totals 363.
The Reconstruction Finance Corporation
functions solely through the medium of loans.
These loans, exclusive of acceptances referred
to in section 5 (a) of the act and of the direct
loans or advances to farmers which, under

226

FEDERAL RESERVE BULLETIN

section 2, are to be negotiated by the Secretary
of Agriculture, are authorized to be made to
banks, savings banks, trust companies, building
and loan associations, railroads and railroad
receivers, insurance companies, mortgage-loan
companies, credit unions, Federal land banks,
joint-stock land banks, Federal intermediate
credit banks, agricultural credit corporations,
livestock credit corporations, and to aid in the
reorganization or liquidation of closed banks.
It is provided by law that the loans shall be
fully and adequately secured.
Realizing that it was essential and in the
public interest that its work should be expedited
as much as possible, the active loaning operations of the corporation were commenced and
carried on while it was in the process of building
up its executive and administrative staffs.
This threw an immense amount of work on
that portion of the staff which was first assembled. The board expresses its appreciation
of their accomplishment, which necessitated
incessant and continuing work on their part,
night*and day.
The board is endeavoring to give prompt
consideration to the many applications which
come to it each day and to make its decisions
without undue delay.
Altogether, at the close of March 31, 1932,
the corporation had authorized 974 separate
loans in the aggregate sum of $238,739,939.06
to 935 institutions, as follows: $158,182,242.06

APKIL, 1932

to 858 banks and trust companies (including
$2,173,000 to aid in the reorganization or
liquidation of 7 closed banks); $4,879,750 to
30 building and loan associations; $7,080,000
to 18 insurance companies; $775,000 to 2
joint-stock land banks; $496,990 to 1 livestock
credit corporation; $21,200 to 2 agricultural
credit corporations; $6,517,000 to 8 mortgageloan companies; and $60,787,757 to 16 railroads (including $7,335,800 to 2 railroad receivers). In addition, the corporation had
outstanding on March 31, 1932, as indicated
in the attached table, agreements to make
loans totaling $6,817,500 upon the performance
of specified conditions. The corporation also
allocated $50,000,000 to the Secretary of
Agriculture in accordance with the provisions
of section 2 of the Reconstruction Finance
Corporation act, and agreed to take all or any
part of the February 15 and March 15 issues
of Federal intermediate credit bank debentures,
aggregating $47,345,000, which might remain
unsold on the dates indicated. As all the
Federal intermediate credit bank debentures
were sold in the open market, it was unnecesI sary for the corporation to take any part of the
' issues in question.
Of the total loans authorized, the corporation
at the close of March 31, 1932, had advanced
$192,346,308.01, and repayments amounted to
$7,471,894.36, leaving $184,874,413.65 outstanding on the books of the corporation.

AGGREGATE LOANS TO EACH CLASS OF BORROWER, FEBRUARY 2 TO MARCH 31, 1932,
Authorized 1
Hanks and trust companies 2
Building and loan associations..Insurance companies
Mortgage loan companies
Joint-stock land banks
Livestock credit corporations
Agricultural credit corporations.
Railroads (including receivers). .




Advanced

.__ $158,182,242. 0t> $125,417,141.01
' """ ~ " ""
2, 430, 500. 00
'i, 035, 920. 00 .
1,277,000.00

"EXCLUSIVE

Repaid
$6, 249, 542. 36
74," 400." 66"

Outstanding
$119,107,598.05
2, 430, 500. 00
0, 501, 520. 00
1, 277,000. 00

A VEIL,

1932

FEDERAL RESERVE BULLETIN

227

NATIONAL SUMMARY OF BUSINESS CONDITIONS
[Compiled March 25 and released for publication March 28]

Volume of industrial production and factory decrease in the value of awards reflects reducemployment increased from January to Feb- tions in building costs.
ruary l>3^ an amount smaller than is usual at
Distribution.—Ca rl o a dings o f mcrcha nd i se
this season. Improvement in the banking situ- j and of miscellaneous freight showed none of the
ation during February and the first three weeks \ usual seasonal increase in February, while sales
of March was reflected in a decline in bank j at department stores remained unchanged, as is
suspensions and a return flow of currency from \ usual at this season.
the public to the banks.
; Wholesale prices.—Wholesale commodity
Production and employment.—Output of prices, as measured by the index of the Bureau
industrial products increased less than season- of Labor Statistics, declined further from 67
ally in February, and the Federal Reserve per cent of the 1926 average for January to 66
Board's index, which makes allowance for the per cent for February. Between the first week
usual seasonal variations, declined from 71 per of February and the third week of March there
cent of the 1923-1925 average to 70 per cent. were increases in the prices of cotton, livestock,
Activity in the steel industry during February and meats, while prices of grains, nonferrous
and the first three weeks of March showed metals, and imported raw materials, including
little change from the January rate, although silk, sugar, and rubber, declined considerably.
ordinarily substantial increases are reported
Bank credit.—In the banking situation the
at this time of year. Automobile production | important developments in February and the
continued in small volume, showing none of the first half of March were a considerable reducusual seasonal expansion, and the number of tion in the number of bank suspensions and a
cars produced in the 3-month period ending in return flow of currency from the public to the
February was about 35 per cent less than in banks. The country's stock of monetary gold
the corresponding period a year ago. In the declined in February but increased somewhat
lumber industry output declined further, con- in the first half of March. Member bank
trary to seasonal tendency. Activity at cotton reserve balances, after decreasing almost conmills and shoe factories increased by more than tinuously since last summer, showed a slight
the seasonal amount and was at about the increase for the first two weeks in March.
same level as in the corresponding month last- Purchases of United States Government obliyear.
gations by the Federal reserve banks, beginning
Volume of employment at factories increased in March, were accompanied by a considerable
in February by somewhat less than the usual decline in member bank indebtedness to the
seasonal amount. In the iron and steel, auto- reserve banks.
mobile, and machinery industries the number ' Loans and investments of member banks in
employed showed an increase smaller than is | leading cities continued to decline until the
usual in this month, and at lumber mills a con- middle of March, when there was a substantial
tinued decline in employment was reported. increase, owing largely to the banks' purchases
At establishments producing fabrics, wearing of United States Government securities issued on
apparel, and shoes volume of employment March 15. Demand and time deposits of these
increased by more than the seasonal amount. banks decreased further during February but
Daily average value of total building con- showed little change in the first half of M&rch.
Open-market rates on acceptances and comtracts awarded, as reported by the F. W.
Dodge Corporation, showed little change in mercial paper declined during February and the
February and the first half of March, and for first half of March. During this period yields
the period between the 1st of January and the on Treasury and other high grade bonds
middle of March the value of contracts was decreased to the lowest point since early De65 per cent less than a year ago, reflecting con- cember, but after the middle of the month
tinued declines in residential building as well yields on high-grade corporate bonds increased
as in other types of construction; part of the somewhat.




228

FEDERAL RESERVE BULLETIN

APRIL,

RESERVE BANK CREDIT OUTSTANDING AND PRINCIPAL FACTORS IN CHANGES
MILLIONS OF DOLLARS

MILLIONS OF DOLLARS

6000

6000

5500

[5500

—•

5000

5000

4500

4500 *'

, 4 - > :: ::-—— 4000
Member Bank
Reserve Balances ;
2500 r

2500

2000

2000

1500

-' 1500

;

t

1000

500

.[_.....
1927




1928

1929

1930

1931

Based on weekly averages of daily figures; latest figures are for week ending March 2G

1
1932

j 0

1932

229

FEDERAL RESERVE BULLETIN

A P R I L , 1932

FEDERAL RESERVE BANK CREDIT
RESERVE BANK. CREDIT OUTSTANDING AND FACTORS IN CHANGES
[In millions of dollars]
Averages of daily figures
Factors of decrease

Reserve bank credit oiitstandiitg

Factors o "increase

Month or week

1931—Januarv
February
March
\pril
Mav

_.

Week ending (Saturday)—
Dec 20

842

_

Jan 2
Jan.9
Jan 10
Jan. 23
Jan 30
Feb.
Fob
Feb.
Feb

6
13
20
27

Mar
Var
Mar
Mar.

5
12
19
20

---

Apr. 2

--

:

:

:

Member
Nonbank
member
reserve deposits,
balances
etc.

952
926
945
954
1,107
1.313
2,088
2,035
1,950

28
25
24
27
28
35
83
187
199
208
171
144

379
379
381
383
382
380
370
307
304
301
357
358

57
43
24

1,865
1,785
1, 652

4.452
4, 384
4,372

1,773
1,787
1,792

5, 045
5, 027
5,531

1, 979
1, 907
1,899

113
73
37

353
349
349

1,129
936

281

790

72

1,991

4, 467

1, 780

5, 727

2,013

145

359

803 •
815 !
820 :
831
859 :

315
288
222
187 :
102 •

791
771
752
752
749

58
00
55
53
52

1,967
1,934
1,855
1,823
1,822

4, 459
4, 404
4. 404
4,454
4, 429

1, 707
1, 700
1,774
1,780
1,773

5, 666
5, 680
5. 040
5, 032
5,017

2. 053
2. 020
1,087
1,950
1, 911

118
111
108
119
117

350
353
352
350
349

802 •
843 '•
850 :
842

157
166
150 ;
139 '

749
742
741
740

54
52
43
31

1,822
1,803
1,790
1,752

4,410
4, 405
4, 379
4, 350

1,777
1,777
1,794
1, 795

5, 045
5, 042
5, 027
5, 005

1, 925
1,917
1, 900
1, 895

91
78
82
55

318
348
348
348

828
757
084
007

125
130 •
107
84

754
780
820
825 :

24
20
23
23

1,731
1,705
1,634
1,599

4, 352
4, 303
4, 374
4,382

1,783
1,778
1,825
1,791

5, 594
5, 503
5, 537
5,498

1,885
1,901
1,909
1, 890

41
34
37
33

346
348
350
351

051

68

1

22

1,595

4,390

1,789

5, 409

1,909

45

351

854

E n d of m o n t h series

"Wednesday series
1932

1932
i
!
i
I
Oct. i X o v . ! Dec. Jan. F e b . : M a r .
31 • 30
31 : 31
29 j 31
Bills discounted
Bills bought
United Stales securities
Other reserve bank credit _
T o t a l reserve b a n k c r e d i t
Monetary gold stock
Treasury currency adjusted

Unexpended
capital
funds

2, 433
2, 370
2, 380
2, 376
2, 3S7
2, 404
2, 407
2, 345
2, 333
2, 250
2,118
2, 009

759
743
809

828 :
848 i
714

_

•

Money
in circulation

4, 095
4, 598
4, 590
4, 047
4, 079
4, 750
4. 830
4,947
5,133
5, 478
5.518
5, 011

221
151
105

1932—January .
February
March

- -

:
:

Monetary Treasury
gold stock currency
adjusted

1,784
1,780
1,778
1,770
1, 783
1,759
1, 784
1, 704
1, 708
1, 708
1,766
1, 782

23
15
18
24
20
20
32
38
38
50
53
59

200
H)2
123
173
144
121
79
135
259
092
500
340

Total

4, 022
4, 050
4, 082
4,711
4, 707
4,805
4,958
4,975
4,948
4, 447
4, 363
4, 450

047
003
004
000
599
010
674
712
730
733
727
777

253
216
176
155
163
188 •
109 i
222 i
280
013
095
774

J line
Julv
August
September
October .
November
December

Other
reserve
bank
credit

| United

Bil]s

Bills discounted

7,8
452
717
44

038
339
81?
59

899
153
74'i
58

828
109 i
740 j
32 I

2,184 1,931 1,853 1,856 1,709
4,292 1, -114 |4,4C0 ;4,415 ;4, 353
1, 7-37 1, 7)9 11, 759 : 1,775 il. 791

039
08
872
18
,597
3s8
800

Money in circulation
5,540 5, 53'i i.V-47 5,042 ;5.003 '*; 459
921
1,947
M e m b e r bank reserve balances. 2, 1('>7 2,051
59
Xonmember deposits, etc
181 170 ' 110 : 107 .
354 ! 350 ; 347 I
349
Unexpended capital funds
355 357

1

F e b . Mar. • M a r . ' Alar. M a r . • M a r .
24
2 '. 9 . 10
23 i 30

Bills discounted
' 835
828
Bills bought
I 133 • 116
Special Treasury certificates
!
Other United States securities.J 741 . 7(0
Other reserve bank credit..
; 2 5 ; 25
T o t a l reserve b a n k credit
Monetary gold s t o c k . .
Treasury currency adjusted

1,734
4,350
,1,780

Money in circulation
'5, 592
Member bank reserve balances. 1,878
Unexpended capital funds, non- j
member deposits, etc
_J 395

748
661 C66
138 . 100 ' 82
:
32
785
810 835
27 • 25
15

633
06
872
10

,729 1,698 1,634 1,597 i 1,587
,350 4,362 4,374 4,381 4,388
,791 1,775 1,838 1,792 1,780
583 5,544 5,522 5,480 j 5,439
902 1,910 :1,919 1,911 1,9.11
385

382

405

380 \

405

* Preliminary.
For explanation of relations between movements of reserve bank credit, factors of decrease, and factors of increase see BULLETIN for July,
1929, p p . 432-438.
Back figures.—Sec (for averages of daily figures) Annual Report for 1930 (Tables 1, 2. a n d 3).




230

FEDERAL RESERVE BULLETIN

APRIL, 1932

RESOURCES AND LIABILITIES OF FEDERAL RESERVE BANKS IN DETAIL; ALSO FEDERAL
RESERVE NOTE STATEMENT
[In thousands of dollars]
• Mar. 31, 1932 '• Feb. 29, 1932 M a r . 31, 1931

HESOURCES

Gold with Federal reserve agents
Gold redemption fund with United States Treasury
Gold held exclusively against Federal reserve notes..
Gold settlement fund with Federal Reserve Board
Gold and gold certificates held by banks
Total gold reserves
Reserves other than gold
Total reserves
Nonreserve cash

...

Bills discounted:
For member banks
For intermediate credit banks
For nonmember banks (secured by adjusted service certificates).
Total bills discounted
Bills bought:
Payable in dollars—
Bought outright
Under resale agreement
Payable in foreign currencies

...
..

...

Total bills bought
United States securities:
Bought outright
Under resale agreement

2,008,907
55,743

1, 733,124
32, 047

2,255,712
270,289 '
487,702

2, 12-1, 050
203,003
519, 790

1,705.771
499, 970
848,894

3,019,703
215,401

2.93S, 109
201,045

3.114,041
181,037

3,235,104
77,805

3,139, 754
71,548

3. 290, 278
73,124

032,300 i
5.910 :
208 i

817,489
10, 573
415

250, 027
121

038,550

828, 477

250,225

31,843
4,930
30,778

08,819
0,852
33, 478

113,380
9,800
1,003

109,149

124,303

800,070
11,502 .

740, 032

598, 431
100

871,C32 I

740, 032

598, 531

07,557

.

....

Total United States securities.
Other reserve bank credit:
Federal intermediate credit bank debentures
Federal land bank bonds
Munici pal warrants
Due from foreign banks
Reserve bank float (uncollected items in excess of deferred availability items)...
Total reserve bank credit outstanding
Federal reserve notes of other reserve banks
Uncollected items not included in float
Bank premises
All other resources
._ ..

. ..

.
. ..
... ..

Federal reserve notes:
Held by other Federal reserve banks.
Outside Federal reserve banks
Total notes in circulation . . . . . . .

. ..

i—•;

...|

10,000

7,040
0,045 :
4,011 i

4,003
8, 007
8, 019

707
10,553

1,596,841 i

1,708,887

990,319

15,792 "
349,448
57,853
30,199

15,910
340, 027
57,821
39, 577

14,278
403,183
58, 322
17,001

5,309,102!

5,374,130

4,913,105

2.547,094
15, 792 !
1
2,503,480 !

15,910
2,035, 253

14,278
1,472,080

2,051,109

1,480,358

1,923,533
29,540
30,300
28,397

1.848,887
35, 825
10,583
30,023

2, 428, 081
55,910
5,145
10,515

2,012,100
349,448
155,023
259,421
29,018

1,937,318
340, 027
157, 492
259,421
28,103

2, 505, 057
403,183
108,828
274, 030
.14,443

5,309,102
335,432 :

5.37-1,130
311,870

4,913,105
430, 779

2,810,584 ;
253,098

2,911,743
200,574

1,875, 042
389,284

2, 503, 480

2,051,109 |

1,480,358

2.211,147
007, 000

2, 008,907
892,153

1,733,124
351,122

2,878,147

2,901.000

2, 084, 240

LIABILITIES

Deposits:
Member bank—reserve account...
Government
Foreign bank
Other deposits
.

200

_

Total resources..

Total deposits
Deferred availability items
Capital paid in
Surplus
All other liabilities

2,211,147
44,565 !

...
..
...

.

Total liabilities
Contingent liability on bills purchased for foreign correspondents

:
;
:
;

FEDERAL RESERVE NOTE STATEMENT

Federal reserve notes:
Issued to Federal reserve banks1 by Federal reserve agents
Held by Federal reserve banks
In actual circulation
Collateral held by agents as security for notes issued to banks:
Gold
.
Eligible paper
Total collateral..

' Excludes "Federal reserve notes of other Federal reserve banks" which are consequently included in actual circulation.




231

FEDERAL RESERVE BULLETIN

APRIL, 1932

ANALYSIS OF CHANGES IN MONETARY GOLD GOLD MOVEMENTS TO AND FROM UNITED
STOCK
STATES
[In thousands of dollars]

[In millions of dollars]

1932

Analysis of changes
Month

I Gold
I stock
Net re- Domesat end Increase j
in stock ;! set gold lease
tic proof
month. during '; import from ear- duction,
I month :
etc.2
mark i
J

1929—January
February
March
April
May
June
July—
August
Septern her
October
November
December

I
\
I
!
i
|
!
j
|
j
j

4,127
4,153
4,188
4,260
4,301
4,324
4,341
4,360
4,372
4,386
4,367
4,284

:j
jj
!
I,
,.
;.

48.6
7.5
16.1
-7.5
-22.0
-1.0
-6.6
-4.5
1.0
-22.0

3.4
.9
2.1
0.7
0.9
0.7
3.6
1.5
1.1
1.4
2.3
3.5

175.1 , - 5 5 . 4

22.7

47.2
25. 5
24.8
23.1
23.6
30.2
34. 7
18.4
17.6
17.5

16.3 :
18.9 !•
12.1 i.
14.4 i
-19.2 ! -23. 2
- 8 2 . 9 ;l - 6 4 . 4
142.4 i

-65.0

1930—January
____; 4,291
4.0 :
0.5
6.8 ;.
February
I 4,353
60.0
0.0
59.9 |!
. March
| 4,423
55.5 j
13.0
68.2:
April
] 4,491
65.7
0.5
68.5 ;!
23. 5
2.0
25.9 ii
May.—
4,517
13.9 ,
2.0
17.6 j!
June
_
! 4,535
-3. 0
- 1 8 . 4 |; - 1 9 . 6
July.
-_i 4,517
0.0
August..
- 1 5 . 5 i| - 1 9 . 6
4,501
September.
2.5
4.0
10.2 ;;
4,511
October
26.4 ' - 6 . 1 •
4,535
23.3 I,
November.
35. 2
4,571
-2.1 '
36.8 i!
32.7
-15.2 |
22.1 j|
December
j 4,593 !
Total (12 mos.)..;

:

305.4

280.2

-4.4

I 4,643 i
11.9 :
34.4
49.4
4,665 !
16.1
22.0
2.5 :
\ 4,697 :i
25. 6
32.0
!
3.0 i
4,726
49. 5
28.7
7
.5
4,798.
49.6
72.4
4.0 ,
4,956 ! 158.0
63. 8
92.3
4,949. - 6 . 6
19. 5 - 2 9 . 7 ;
_ 4,995 !
57. 5 - 1 6 . 0 |
45.7
___; 4,741 j -254.3
20.6 -279.1 :
'. 4,292 : -448. 4 -337. 7 -107.6
4,414 i 122.0 i
89.4
28.3
4,460 ;
56.9
45.8
-22.9 :
!
Total (12mos.)..
; -133.4
145.3 - 3 2 0 . 8 !

1931—January
February.
March
April
May
June
July
August
September
October
November
December

1932—January...
February
March v

Imports

••

-14.4
26.4
34.4
72.4
40.6
23.4

Total (12mos.)~;

March
(preliminary)

From or to—

!

: 4,416 ; - 4 4 . 2 ;: - 7 5 . 0
__; 4,354 : - 6 2 . 3 j - 9 0 . 6
_..: 4, 389 j -4-34. 0 |i - 2 6 . 7

25.4
26.4
58.3

2.3
1.9
-0.3
2.3
0.5
1.7
4.3
4.2
3.7
3.1
3.8
4.5

Exports

•pphrmrv
Jjeoruarj,

Imports

JanuaryFebruary

Belgium..
6,341
; 17,859
England..
j
235 '
France
j 98, 203
37,533
I
495 •
Germany Italy.
8,672 !
Netherlands
2,386
Portugal..
_
i
Sweden
254
Switzerland
6
8,417
11
Canada.
7,002
69 !
Central America.
965 :
Mexico..
2,375 •
Argentina
[ 2,683'
1,157 |
;
Colombia
i
7i
Ecuador
__
__'
205 !
Peru
._•;
i
.!
Uruguay
i
1,000 '
Venezuela..
133 '•
British India
_ 2,575 ;
China and Hong
I
Kong
2,903
I
: 819
Dutch East Indies. 1 ..
'
278 ;
:
Japan
_. 19,441 i
:
Philippine Islands
i
289 I
24
All other countries!.. 2,208 \
33 j 2,288 i
Total

* 17,171 : 2 43,913

Exports

Ex- I Imports | ports

37,644 128,211

• 30,412

171 I
i

3,604
181,987
566

14, 929
2,386
10,579 !j
191
2,073 !
10,267
2,956
312 !
166 .
1, 000 •
254
7,252

2,013
27
20

57

987
693 :
29,410 |
581 !
3,656 i
70,550

74

236,075

32.0

3.1
3.3
3.3
-13.3
18.8
1.9
3.6
4.2
4.2
-3.1
4.2
11.9

1 Includes all movements of unreported origin or destination.
2 At New York—imports, $6,585,000; exports, $43,913,000. Elsewhere
imports, $10,586,000*

KINDS OF MONEY IN CIRCULATION
[In millions of dollars]
1932

1931

Mar. 31 v \ Feb. 29

Mar. 31

Kind of money

42.1
5.4
1.9
3.3

Gold coin
Gold certificates
Federal reserve notes.

404
779
2,546 .

406
820 I
2, 634 I

354
1,047
1,471

Treasury currency: 1
31 !
35
Standard silver dollars
355 j
372
Silver certificates
1
1
1
1
Treasury notes of 1890
Gold released from earmark at Federal reserve banks less gold placed
271
260
259
Subsidiary silver
under earmark.
116
114
114
Minor coin
2 This figure, derived from preceding columns, represents the excess of
289
280
274 .
United States notes
domestic production over nonmonetary consumption of gold—chiefly
3
3
3
Federal reserve bank notes..
consumption in the arts. In any given month, however, it may be
648
691
National
bank
notes
predominantly affected by the fact that on the final day of the month
(a) gold bullion or foreign gold coin recently imported may not yet have
1,743
1,730
Total Treasury currency
reached a reserve bank or the Treasury, and (6) gold bullion recently
withdrawn from stock for export may not yet have been actually
Total
money
in
circulation..
5,603
5,459
exported. The figures are subject to certain unavoidable inaccuracies
in official reports of gold imports and exports.
p Preliminary figures.
v Figures preliminary.
i For explanation of the term "Treasury currency" see BULLETIN for
July, 1929, p. 432.
Total (3 mos.) *_'.




- 7 1 . 6 i! -192.3

110.1 I

10.6

232

FEDERAL RESERVE BULLETIN

APRIL, 1932

MEMBER BANK RESERVE BALANCES
[In millions of dollars]
Averages of daily figures
Reserves held

Month or week

Total—all
member i New York :
banks
uity»

Excess reserves

Other

Other
reserve
cities

Country"! ™aJ-aU New York
Cityi
banks
banks |

cities

1931—January
February...
March
April
May..
June
July
August
September..
October
NovemberDecember..

2,433
2,370
2,386
2, 376
2,387
2, 404
2,407
2.345
2,333
2, 256
2,118
2,076

891 •

847
860
829 .
848
882
887
843
864
848
774
766

955
945
945
962
961
949
950
943
918
872
832
807

587
578
580
585
578
573
570
559
551
536
512
503

104.7
56.6
66.5
55.6
66.8
128.9
124.4
100.6
120.3
129.1
57.0
66.3

51.5
11.6
19.4
7.2
15.5 j
71.4 !
60.6 i
34.3
53.8 !
52.5 :
10.7 i
18.5 j

1932—January..
February-

1,979
1, 907

724
681

767
753

488
473

35.4
43.8

4.5 i

2,020 ;

Week ending (Friday)—
Dec. 25

748 '

782

489

2,041
2,035
1,990
1,903
1,941

752
748
727
717
712

800
780
773
759
755

489
507
490
487
474

i7.5:
9.1

Feb. 5..
Feb. 12.
Feb. 19.
Feb. 26.

1,930
1,917
1, 906
1, 895

699
686
(580
673

753
754
754
752

478
477
473
469

4.5 i
io.5;
7.8;
8.7 :

Mar. 4...
Mar. 11. _
Mar. 18-

1,890
1, 894
1,913

675
070
689

740
753
759

4(58

Jan. 1
Jan. 8.
Jan. 15
Jan. 22_.__
Jan. 29_

470
465
1

i Central reserve city banks only.
Backfigures.—See(for monthly data) BULLETIN for June, 1931, p. 347.

22.5
18.2
18.7
20.2
23.6
27.0
32.8
35.7
36.7
39.7
19.4

3.9

1.8 i
11.3 !

29.2
25.3

:
!
!
'
i
l
|

!
"
s
i

I
5.8 :

11.7
10.2 i
13.4
11.1 :
19.9 j
24.3

;

7.2 •
( )

16.9 i

30.7
26.7
28.4
28.2
27.7
30.5
30.9
30.6
29.8
37.0
26.9
30.9

22.5
1.1
3.2
-2.1
1.9

7.6 j
6.0 I
4.8 |

2

;
i
'

4.9 j

8.4 ;

(2)

'Country"
banks

14.4 !

(*)

Figures not available by weeks.

MEMBER BANK DEPOSITS
[In millions of dollars]
Averages of daily figures
Net demand and time deposits
Month
ber
banks

Net demand deposits

Time deposits
i

!
New

Other

City i

cities

T o t a l - | New
"Coun- all
mem-1
try"
ber i York
banks
banks I Cityi

: New
Other ' ' Coun- oilTotal—
mam
'
York
reserve
try"
ber
i
Cityi
cities
banks
banks ;

Other ' ' Counreserve
try"
cities
banks

j

1931—January
February.._
March
April
May
June
July
August.._
September
October.
November
December

._._ 32,048 '
31,968 i_J 32,069 •:
i 32,179 :
32,168 :i
I 31,602 ••
! 31,526 ij
- - I 31,041 :
' 30,500 ij
•' 29,138 !i
!
28,218 \
! 27,438 !

1932—January...
February...

! 26,592 !!
; 25,715 ||

12,942
12,932
13,003
13,181
13,157
12,939
12,831
12, 702
12,356
11,657
11,350
11, 048

11,662
11,583
11,594
11,662
11,573
11,432
11,371
11,192
11,018
10,544
10,256
9,976

18,572
18,389
18,431
18.491
18,419
18,055
18,122
17, 783
17,525
16,859
16. 358
15,985

6,163
6,120
6,169
6,019
6,094
5,934
6,064
5,946
5,962
5,872
5,653
5,546

7,243
7,170
7,159
7,309
7,236
7,132
7,102
7,012
6,805
6,421
6,273
6,106

5,165
5,099
5,103
5,163
5,090
4, 988
4,956
4,825
4,758
4. 567
4, 432
4,333

13,477
13,580 i
13.637 |
13,688 i
13,749 i
13,548 :
13,404
13,259
12,974 i
12,279 :
11,860
11,452

6,165
10,706
5, 797 : 10,413

9,720
9,505

15, 447
14,789 j

5,343
5,001

5,921
5,723

4,183
4,0(54

11,145
10, 926

7,445 •
7,453
7,472
7,336
7,439
7,232
7,325
7,147
7,126
6,937
6,612
6,414

i Central reserve city banks only.
Backfigures.—SeaBULLETIN for June, 1931, p. 347.




1,282
1,334
1,303
1,317
1,345
1,297
1,260
1,201
1,163
1,065

959
868

5,698
5,761
5,843
6,872
5,921
5,807
5,728
5,691
5, 552
5,236
5,076
4,942

6,496
6,485
6,491
6,498
6,483
6,444
6,415
6,367
6,259
5,977
5,825
5,643

822
796

4,786
4,090

5,537
5,440

FEDERAL RESERVE

A P R I L , 1932

233

BULLETIN

ALL MEMBER BANKS—CLASSIFICATION

OF LOANS AND INVESTMENTS

[In millions of dollars]
Open-market loans

Loans to other customers

_|l
!|
j
•I
ll

Purchased paper
Total
loans .1 Loans!
and :| to !
invest- •! banks
Total
ments i|

Call date

SeSecured
cured
by
by
stocks real
and
bonds

Other- !
wise
secured Total
and
unse- ;
cured i

6,646 i
7,348 !
7, 540
7. 734
8, 109
8,488 i
7,730 !
8.061 i
7.864 ,
7,942
7.423
7,117 !
0,842 !
0,290

11, 507
10,991
11,240
11,618
11.9SS
11,515
10, 595
10. 349
9.9S2
9,831
9, 298
8,922
8, 722
8,244

Acceptances
payable
in
United
States

Investments

Accept- Comances j merpay- | cial
able
paper
abroadj

Total
loans
sej Loans
U.S.
cured
to j
I Gov1
by
Other
bro| ernkers
Total I ment secur- i stocks
;! a n d
in
1
secur- ities ! ( b o n d s 1
New
ities
•I
York i

TOTAL—ALL MEMBER
RANKS
31,929 :
35, 684
35, 393
35,711 |
35,914 i
35,934
. 35,056
I 35,656 ,
35,472 i
34,860
34,729
33,923
33, 073
30,575

1928—Oct. 3
Dec. 31
1929—Mar. 27
June 29
Oct. 4
Dec. 31
1930—Mar. 27
J u n e 30
Sept. 24
Dec. 3 1 . —
1931—Mar. 25
J u n e 30_
-Sept. 29
Dec. 31
NEW YORK CITY 3

7,197
7,951
7, 720
8, ltiO
8,150
8, 774
8,238
8, 798
8, 557
8, 582
8,473
8,287 •
8,253
7,400

1928—Oct. 3
Dec. 31
1929—Mar. 27
J u n e 29
Oct. 4 . . .
Dec. 3 1 . —
1930—Mar. 27
J u n e 30
Sept. 21
Dec. 31
1931—Mar. 25
J u n e 30
Sept. 29
Dec. 31
OTI1ER RESERVE CITIES
1928—Oct. 3._
Dec. 31
1929—Mar. 27
J u n e 29
Oct4
Dec. 31
1930—Mar. 27
June 3O._
Sept. 21
Dec. 31
1931—Mar. 2 5 . . .
J u n e 30
Sept. 2 9 . . .
Dec. 3L_.

--—
-

548
538
548
670
640
714
527
535
466
631
446
457
599
790

i 21,242
! 21,462
21,903
22, 516
23, 249
I 23.194
I 21, 495
| 21, 565
21,010
;21.007
' 19, 940
19, 257
18,713
j 17,570

3,089
3.123
3,123
3,164
3,152
3. 191
3,170
3, 155
3,163
3,234
3, 220
3, 21.0
3,149
3, 038

2, 537
3, 15S
2, 494
2.472
2, 276
2,243
3, 097
3,113
3, 262
2, 233
2,454
2,103
1, 563
901

287 I 3,919
288 ! 3,940
" " " 4,253
251
314
4, 532
302
4, 84(5
322
4, 904
199
4, 338
190
4, 308
109
4, 270
283
4, 338
154
4,007
150
3, 839
250
3, 850
374
3, 094

1,530
1,708
1,744
1,877 !
1,944 i
2,200 ,
1,930 I
2.022 !
2,0.'U j
2. 137 !
!,<H;O I
1,897 |
1,810 i
1,728 j

214
213
258
308
294
346
263
277
235
286
235
247
284
347

9, 090
9, 267
9, 280
9,434
9, 775
9,748
8,951.
9. 029
8, 720
8, 900
8, -109
S, 100
7.845
7,407

3, 382
3, 734
IJ, 740
.'5,718
3, 869
3, 975
3, 004
3,811
3 , (V.i'?.
3, 650
3,366
3.188
3,092
2,800

4,178
875
1,530
3, 980
742
1,547
4,036
645
1,509
4,213
480
1,503
4,415
526
1,491
438
1,559 | 4,214
945
1,544 I 3,802
710
1.524 ' 3, 093
3,
507
1,004
1,526
3, 020
531
1,631
3,423
645
1,619
3,291
470
1,021
3,
108
326
1,585 •
3,003
135
1,538

8, 225
8, 254
8, 364
8,551
8, 027
8,4Sl
8, 200
8, 229
8,007
7, 702
7, 521
7,3J 8
7,018
6,469

1,727
1, 900
2,050
2, 139
2.295
2,314
2,190
2, 227
2,200
2, 149
2,097
2,031
1,935
1,756

5,075
1,423
4,904
1,444
1,405 . 4, 843
4, 920
1,486
1,482
4, 847
1,462
4,705
1,475
4,541
1, 475
4,527
1,480
4,320
1,455
4,158
1,449
3,978
3,849
1,437
1,411
3,673 .
3,307 I
1,346
I

130
132
148
175
176
109
150
157
157
147
150
160
152
153

j
;
I
'
|
I

2, 253
2. 100
2, 301
2,480
2, 720
397
2, 595
055
2, 252
091
2, 129
912
2, 087
2, 054 . , 525
1, 890 | ,051
497
1,782 i 1,497
1,881 I 1, 121
1,813 '••
095

1,899
2, 556
1,879
2, 025
1,885
1,660
2,344 I
2,365 '
2,472 i
1,498 |
J,030 !
1,217 :
928
575 .

80
109
146
10S
93
212
175
170
205
315
361
389
268
140

101
103
93
90
70
80
79
71
62
55
101
113
70
41

457
390
376
249
22*
291
499
507
5'23
366
301
381
290
140

50
01
59
58
59
128
89
144
148
188
199
290
201
107

55
61
52
58
33
40
40
29
28
22
51
44
33
17

03
29
37
21
8
21
49
35
22
34
35
94
48
29

6
18
43
17
8
51
59
18
54
122
158
91
67
35

30
34
32
25
31
29
35
38
31
29
48
67
35
21

199
150
147
88
75
108
242
301
337
212
212
189
167
62

541
423
349
413
250
609
353
643
107
227
124
56
16

17 i

195
211
1.92
140
144
1GS
207
171
104
120
114
101
81

378 :
376 !
354 •
316 !
370
208
258 i
129 •
115
49
36 !
30
32
16

10,604 ;
10.529 !
10,448 '
10,052 !
9,749 •
9,784 I
9,937 ;
10, 442 ;
10,734 ||
10,989 J
11,889
12, 100
12,199
11,314

4,386
4,312
4,454
4,155
4, 022
3,863
4.085
4,061
4, 095
4,125
5, 002
5, 343
5, 564
5,319

6,218
6,217
5,994
5,898
5. 727
5,921
5, 852
6, 380
6, 639
6, 864
i), 880
0, 763
6, 035
5, 996

1,942 N 1,130
813 .;
1, 933 :| 1,094 83!) il
1,972 ;! 1,135 838 i:
1, 810 1 1,000 813 :;
817
989
llouJi ! 1,807
979
1,112
1, 202 2,091
J, 477 2,046
897 \
1, 150
,050 !'
1,147
1,883 ; 2,203
1,714 ' 2,198
1, 091
, 1071:
1,239
.1,281 : 2,435
197 i|
1,307 : 2, 662 1, 400
190 ;j
1,003 i 2, 801 1,056
145 !i
839 j 3, 032 1,830
202 ':
542 | 2, 697 1,708
928 I
880
1,039 !
1,102

041 i

8,819
10,172
9,693
10,094
10,314
10,505
10,334
10,656
10,511
9,754
9,272
8,503
8,081
7,320
2, 500
3,491
2,971
3,393
3,191
3, 502
3, 504
3,983
3, 798
3, 550
3, 397
3, 026
2,780
2,474

2,041 j
2,008 I
1,840 ;
1,846 j!
1,717 '
1,709 .'
1,754 !
1,909 |
;
2,161
1,785
1,727 2,308
2,313 2, 304
2,408 2,342 •
2,301 2.200 i
2 , 1 3 3 2,093 :

4,130
4,381
4,292
4,221
4,429
4,397
4,368
4,306
4,387
3,991
3,729
3.459
3,317
3,050

.! 1,302 3,365
li 1,382 3,370 I
i! 1,424 3,316 !
:
3,240 :
j 1,384
"; 1,301 3.193 I
j 1,267 3,172
!, 1,273 3,202 |
' 1,229 3,326
1,219 3,370
1,159 3,359
1,224 3,326
3, 276 !
1,279
3,172 !:
1,433
1,418 2,974

2,129
2,300
2,429
2,480
2, 694
2, 545
2,462
2,307
2,326
2,213
2,147
2,078
1,985
1,796

3, 935
i 3,814
3, 736
3,611 ,
3,388
3,253 !
3,416 \\
3, 685 i!
3, 917 ! l
: 4,035 il
i 4, 676 i,"
! 4, 750 il
: 4, 561 II
. 4,226 H

1,894
1,836
1,896
1, 705
1,671
1,484
1,602
1,686

" C O U N T R Y " BANKS

1928—Oct. 3 .
Dec. 3 1 . 1929—Mar. 27
June 29
Oct. 4
Dec. 31
1930—Mar. 27
J u n e 30
Sept. 24
Dec. 31
1931—Mar. 2 5 — .
J u n e 30
Sept. 29
Dec. 31.

13,612
- 13,667
13,741
13,719
13,780
13,375
13,243
—_ 13,157
12,944
_
12,519
12,290 .
12,068 .
11,805
- 10,999

614
625
598
496
553
409
496
312
280
177
158
135
11.6
71

24 ;
30 !
44 l
33
27
33 !
27 !

8

I

4 i

5!
5
!

5
4
4
4
3
2
2
2
2

!
:
j
i
i

4,727
4, 751
4,740
4,623
4,554
4,439
4,475
4, 554
4, 5*9
4,519
4,550
4, 555
4.000
4,392

i Loans (secured by stocks and bonds) to brokers and dealers in securities at New York City.
'Including loans to banks secured by stocks and bonds, reported separately after 1929 and estimated for preceding dates as one-half of total
loans to banks.
* Central reserve city banks only.
Back figures.—This classification of loans is not availabe for dates prior to Oct. 3, 1928, but comparable figures of total loans secured b y stocks
and bonds are given for Juno 30, 1925-1928, in the board's Annual Report for 1928 (Table 52); for separate figures of United States Government
securities and other securities back to 1914, see Annual Report for 1930 (Table 47).




234

FEDERAL RESERVE BULLETIN

APRIL, 1932

ALL BANKS IN THE UNITED STATES—TOTAL LOANS AND INVESTMENTS, DEPOSITS
[In millions of dollars. Includes national banks, State commercial banks and trust companies, mutual and stock savings banks, and all private
banks under State supervision. For back figures see BULLETIN for May, 1931 (p. 253), and Annual Report for 1930 (Tables 42-43)]
Total loans and investments

Deposits (exclusive of
interbank deposits)

Member banks

Date

Total
1928—June 30
Oct. 3
Dec. 31

57,265
57, 219
i 58,266

39, 464
39, 671
40, 763

17,801 j 35,061
17,549 i. 34,929
17,504 ; | 35, 684

1929—Mar. 27
June 29
Oct. 4
Dec. 31

j
i
!
'

58,019
58,474
58,835
58,417

40, 557
41,512
42, 201
41,898

17,462 j
16,962 !
16,634 j
16,519 h

1930-Mar. 27
June 30
Sept. 24
Dec. 31

_J
i
j
i

57,386
58,108
57,590
56,209

40, 686
40, 618
39, 715
38,135

16,700 !
17,490 |!
17.875 j!
18,074 ||

55,924
55.021
53,365
50,097

36, 813
35, 384
33, 750
31,010

19,111
19, 637
19,615
18, 481

1931—Mar. 25..
June 30..
Sept. 29_
Dec. 3 1 . .

35, 393
35,711
35, 914
35, 934

BANK LOANS AND INVESTMENTS, PERCENT
AGE DISTRIBUTION

NUMBER OF BANKS
Member banks
Date
Total

National

State

[Figures for December 31, 1931]

Nonmember
banks

Total loans and
investments
Number
. of banks Amount Percent(millions age dis
of dollars) j tribution

1925—Dec. 31

28,257

8,048

1,441

18,768

1926—Dec. 3 1 . _ _

27, 367

9,260

7,906

1,354

18.107

All banks in the United States .

1927—June 30
Dec. 31

26, 765
26,416

9,099
9,034

7,790
7,759

1,309
1,275

17, 606
17, 382

Member banks—total

1928—June 30
Dec. 31

25,941
25, 576

8,929
8,837

7,685
7,629

1,244
1,208

' 17,012
16,739

1929—June 29
Dec. 2 9 . .

25,110
24, 030

8,707
8,522

7, 530
7,403

1,177
1,119

10, 403
16.108

23, 852
22, 769

8, 315
8, 052

7,247
7,033

1,068
1,019

15, 537
14,717

.__. 21.903
21,294
19,908

7,782
7,599
7,246

6,800
6,053
6,308

982
946
878

14,121
13,695
12,722

_

1930—June 30
Dec. 31
1931—June 3O._
Sept. 29
Dec. 31

i All banks in the United States; includes national banks, State commercial banks and trust companies, mutual and stock savings banks, and
all private banks under State supervision.
' Revised.




:
Reserve city banks (62 cities)
Central reserve city b a n k s New York City
!
Chicago
Other reserve city b a n k s New York City
|
Chicago
|
Other Federal reserve bank cities :
(10 cities)
I
Federal reserve branch cities (25 •
cities)
_.._;
Other reserve cities (25 cities)
;
"Country" banks 1

Nonmember banks
1

19,968

50, 097

100

7,246

30, 575

61

403

19, 570

39

39 ;
12 i
9
23

!

7,400 !
1,517 j

15
3

31 L
09 L

97

5, 200

10

133
90
0,843

4, 099
1, 200
10, 999

2
22

12,722!

19,522

Includes certain outlying banks in reserve cities.

235

FEDERAL RESERVE BULLETIN

APRIL, 1932

REPORTING MEMBER BANKS
[In millions of dollars. Monthly data are averages of weekly figures]
Total—all weekly reporting member banks
Loans and investments
Month or date
Total

Loans All
on se- other
curities loans

New York City
Loans and investment

:

Bor. rowInvestments :: ings
at
: F. R.
U. S. so- banks
Total curities

Borrowings
at
Loans All
F. R.
on se- other
banks
l
o
a
D
S
U.
S.
securities
! Total curities
Investments

Total

i

1931

January
February...
March
_
April
May.
_.
June
July
August
September..
October
November..
December _

22, 600
22,659
22, 839
22,942
22, 713
22,439
22, 393
22,093
22, 078
21, 425
21,023
20, 749

7,495
7,315
7,302
7,157

8,399
8,242
8,150
8,040
7,893
7, 853
7, 904
7,900
7,870
7, 079
7, 586
7,441

0, 700
7,102
7,387
7,745
7,822
7,810
7, 798
7, 713
7,795
7,775
7, 578
7,545

3,163
3,385
3,638
3, 913
3,957
4,048
4,121
4,074
4,154
4,171
4,072
4, 127

57 I 7,965
35 7,975
26 ! 7,889
28 7,875
50 7, 094
44 7,780
75 7, 633
127 7,744
398 7,400
404 7,258
499 7,105

3,111
3,079
3,176
3,080
3,039
2.846
2, 764
2, 640
2, 657
2, 369
2,277
2,237

2,472
2,410
2,295
2,242
2,194
2,204
2,305
2,370
2,375
2,272
2,243
2,218

January.
February..
March

20,178
19, 775
19, 434

5,644 7, 331
5,497 7, 214
5,388 ' 6,987

7, 203
7, 004
7. 059

3, 943
3, 856
3, 866

409
484
308

6,921
6, 645
6.521

2,209
2,127
2,005

2,220 ;
2,171
2,078

2,492
2,347
2,378

Jan.
Jan.
Jan.
Jan.

f>__.
13..
20..
27..

20,379
20, 287
20, 052
19,992

5, 087
5, 000
5, 032
5,596

7,302
7,250
7,117
7,137

4,057
3,990
3,880
3,841

483 7,039 I
409 .
457 j 6,838
467 | 6,819 |

2,223 i
2,210 !
2,205
2,194

2,249
2, 249
2,211
2,171

2,567
1, 722
2,523 | 1,670
2,422 ! 1,578
2,454 j 1,547

Feb.
Feb.
Feb.
Feb.

3..
10.
17.
24.

19,979
19, 785
19, 731
19,600

5,574 7, 256
5, 504 ; 7,212
5,474 ! 7,217
5,438 I 7,171

7,149
7,009
7.040
6, 997

3,925
3,853
3,840
3,800

492
472
493
478

2,178
2,124
2,112
2,092

2,181
2,108
2,177
2,158

2,435
2,340
2,314
2,294

I
j 1,593
i 1,520
: 1,490
1,477

Mar.
Mar.
Mar.
Mar.
Mar.

2...
9—
10..
23..
30.

19,523 |
19,305 !
19,588 !
19,403
19, 354

5,440
5,420
5,413
5,337
5,328

0, 935
0,869
7,200
7,149
7,143

3,742
3,704
4,016
3,951
3,920 j

474 0,540 !
397 0,421 j
328 " 0,017 !
334 0,480 i
305 6,541 |

2,109
2, 097
2,006
2, 009
2,043

2,100
2,077
2,082
2,039
2,031

2,271
2,247
2,469
2,438
2,467

|
I
I
i
!

6,770
(i, 631
0, 480
6,413
5, 971
5, 859
5, 703

82

7,906

2,323
2,476
2,504
2,567
• 2,642
' 2,644
2, 051
2, 623
2,712
2,825
2,738
2,710
i
:

:

1,254
1,353
1,391
1,414
1,460
1,523
1,608
1,600
1, 052
1,750
1,705
1,732

14,754
14,694 I
14,864 |
15,053 I
14,838
14,745
14, 613
14, 400
14,334
13,959
13,765
13,584

77
55
35
26
28
56
44
72
124
324
388
416

1, 031
1,521
1, 547

13, 257
13,130
12,913

435
461
365

00 !
45;
15 i
15 i

13,340
13, 299
13, 214
13,173

423
424
442
452

35
15
20
20

13,185
13,147
13,128
13, 002

457
457
473
458

12, 983
12,884
12,971
12,917
12,813

459
397
328
334
305

1932

7,390
7,371
7, 303
7, 259

7,148
7,010
0, 975
0,917
6,883

0,794
(>,038
6, 003
0,544 ;

1,445
1,437
1,643
1,601
1,610

15

i
I
'
i

BROKERS' LOANS
MADE BY REPORTING MEMBER BANKS IN N. Y. CITY

REPORTED BY THE NEW YORK STOCK EXCHANGE

[In millions of dollars. Monthly data are averages of weekly figures]

[Net borrowings on demand and on time. In millions of dollars]

For ac-

Total
End of month
i 1931

January
February
March
April....
May
June

_

1932

From New
From private
York banks banks, brokers,
and trust com- foreign banking
panies
agencies, etc.
1932

; 1,720
i 1,840
| 1,909

217

| 1,651
| 1,435
: 1,391

185 '
141
170

July
August
September
October
November
December

1931
163
1 9 4 '•

173 !
194
112

._

Back figures.—See Annual Report for 1930 (Table 57).




108
148 i
132 i

1932
138
140
142

1931—January..
February.
March....
April
May
June
July
August

September
October
November.
December.
1932—January...
February..
March
Mar. 2...
Mar. 9...
Mar. 10Mar. 23..
Mar. 30..

For count of For acown ac- out-of- count of
count
town
others
banksi

Total

Month or date

1,798
1,759
1,858
1,824
1,644
1,464
1,434
1,342

!

:
•;
i
;

:
'

1,268
921
802
655
544
495
531

!
;
;;
!;
.;
i;

!

495 •

552
561
524
525 i

1,132
1,186
1,335
1,322
1,279
1,110
1,062
951
943
674
588
554
473
417
432
429 l
404
431
399
438

329
290
264
271
191
181
204
226
174
90
124
88
65
72
94

337
283
259
231
174
173
168
165
151
157
90
13
6
6
5

01
84
125
120
82

5
4
5
5
5

i Member and nonmember banks outside New York City (domestic
banks only).
Backfigures.—SeeAnnual Report for 1930 (Table 56).

236

FEDERAL RESERVE BULLETIN

APRIL, 1932

ACCEPTANCES AND COMMERCIAL PAPER
BANKERS' ACCEPTANCES OUTSTANDING
CEPTANCES)

(DOLLAR AC-

CLASSES

OF BANKERS' ACCEPTANCES
ACCEPTANCES)
[In millions of dollars]

Jin millions of dollars]

^:

End of month

Total
outstanding

r JJssee^^e 'e! !H e ll ddb77 group of
o ac!

banks

For
own
account

(DOLLAR

cepting banks
cepting

! For !
i ac- i
i count:
: of for-\
j eign j
corrc- j
spond-j
1
ents i

bills

Bills
bought

Based
on goods
stored in
Based Based United
States
on ex- (ware- Dollar
exTotal im- ports house
from credits) change
into U.S.
or
TT Q
shipped
between
domestic points

!
j Held
I by
j others

End of month

Based
on
goods
stored
in
foreign
countries or
shipped
between
foreign
points

OUTSTANDING

1930—January
1,693
February... 1,624
March
., 539
April
,414
May
,382
June
,305
July
., 350
August
,339
September . ,367
October
., 508
November- ,571
December. . ,556
1931—January
,520
February... ,520
March
., 4(57
,422
April
,413
May
June
., 368
July
,228
,090
August
996
SeptemberOctober
1.040
November.. 1,002
December..
974

293
269
277
209
184
127
129
167
208;
141 ,
143 j
328
I
89
85
123
162
124
95
39
70
420
647
418
305

1932—January
February...
March-

119
76
37

961
919

526;
503 :
482
465 '.
403 ;
470 i
479 !
471 '
432 |
433 |
429 I
439 ;

220
183
167
158
166
205
279 |!
267 '
317
384
493
371

63
71
72
55
63
64
63
95
131
172
180
90

157
112
95 i
103
103
141
216
172
186
212
313
282

653
669
613
582
570
503
463
434
411
550
507
417

447 :
456
431
409 i
380 !
341
243
228
100 !
99
126
251
I
314 ;
312 !
335 :

571
550
472
410
464
554
668
606
410
230
296
262

134
151
131
125
171
196
232
168
162
112
125
131

437
398
341
285
293
357
436
438
248
118
171
131

412
429
441
441
444
379
278
186
66
63
162
156

159
175

174
168

195
189

332
343

1

!
i
!
i
i
!
:

Figures for acceptances outstanding (and held by accepting banks)
from American Acceptance Council.
Back figures.—See Annual Reports for 1929 (Table 58) and 1928 (Table
61).
ACCEPTANCES PAYABLE IN FOREIGN CURRENCIESHOLDINGS OF FEDERAL RESERVE BANKS
[In thousands of dollars]
End of month

1929

1930

1931

1932

1931—January
February
March
April
May
June
Julv
August
September
October
November
December
1932—January
February

..

.

1,520
1,520
1,467
1,422
1,413
1,368
1,228
1, 090
996
1,040
1,002
974

214
212
212
211
207
202
186
178
174
173
158
159

400
398
390
360
361
349
330
276
257
261
254
222

292
295
282
271
264
254
238
202
190
238
258
267

65
71
62
73
75
69
52
43
37
38
34
31

549
544
520
507
505
494
423
391
338
330
298
296

961
919

150
142

207
195

272
271

34
26

298
284

89
85
123
162
124
95
39
70
420
647
418
305

10
13
17
24
20
15
7
10
68
105
61
43

13
11
23
25
18
16
6
9
55
93
66
55

23
17
27
37
19
17
8
88
129
99
84

;-;,
42
52
60
59
39
16
38
185
285
170
104

119
76

16
9

19
12

32
27

8
2
3
8
f>
5
2
3
17
24
16
14
2

HELD BY F. R. BANKS
(OWN ACCOUNT)!

1931—Januarv
lebruary
March
April
May
June
July
August
September
October
November
December
1932—January
February

Q

1

47
25

i Total holdings of Federal reserve banks include a small amount of
unclassified acceptances.
Back figures.—See Annual Report for 1930 (Tables 61 and 14).
COMMERCIAL PAPER OUTSTANDING
[In millions of dollars]

1931
End of month
1930
1932
1929
33, 444
407
404
327
33,478 January...
••108
411
457
30,778 February
315
103
387
March
|
529
311
30,778
351
April
553
307
;
304
May
_
__.j
541
305
274
June
_
_
|
527
292
265
July
;
528
289
267
August—
j
526
271
265
September
J
513
248
285
October
j
485
210
316
November
I
448
174
334
December
!
358
118
i
Back figures.—See Annual Report for 1928 (Table 12), 1927 (Table 12),
r
Revised.
926 (Table 24), etc.
Figures for commercial paper as reported by about 20 dealers.
Back figures.—See Annual Report for 1930 (Table 60).

January
FebruaryMarch
April
May
June
July
August
September.
October
November..
December—




1,019
1, 029
1,036
1, 036
1,040
1,043
2, 061
12, 346
16, 955
17, 064
1,027
1,030

1,035
1,038
1,040
1,054
1,058
1,064
1, 065
1,071
1, 075
21, 583
31, 587
35, 983

36,119
23, 958
1,063
1,074
1, 073
10, 551
34, 371
145,215
48,804
33, 501
33, 386
33, 429

APRIL,

237

FEDERAL RESERVE BULLETIN

1932

BANK SUSPENSIONS AND BANKS REOPENED
Banks suspended
Number

Banks reopened
Deposits (in thousands of
dollars)

Deposits (in thousands of dollars)

Year and month
Members
Members
Non- |
All
memAll
banks
banks i NaI bers !
National State
i tional State
1921.
1922.
1923.
1924.
1925.
1926.

501
354
648
776
612
956

:
i
!
|

51 |
45 I
90 I
122
118
125

1927..
1928.
1929.
1930..
1931.

662
491
642
1,345
2,298

i
I
i
!
|

91
57
64
161
409

1930—September
October
November
December

_.i
I
,
|

1931—January...
February
March
April
_
May
June
July
August
September
October
November
December

r..\

j
J
!
I
!
i
_J

1932—January...
February..
March

19 :! 431
196,460
21, 285
12
297 i 110,721
19,092
524 j 188,/ 01
32,904 :
60,889
37 : 617 ! 213,338
58,537 •
28 ; 466 ! 172,900
47,866
35
796 | 272,488
33
538 i 193,891
46,581
418 ! 138,642
31,619
16
37,007
561 I 234,532
17
26 1,158 ! 864, 715 173, 290
439,171
108 1,781 :l, 691, 510
34 •

All j; Mem
banks!; bers

21,218 : 153,657
5,151 ! 86,478
18,324 : 137,473
13,580 i 138,
8,727 I 105,636
20,946 ! 203,676
19,755
10, 621
20,128
207,150
294, 357

127, 555
96, 402
177,397
484, 275
957,982

14, 361
23,947
6,606
15, 272

8,311
6,610
2,273
3,538
53,944

66
72
254
344

7
10
26
49

2
7
7

57 ! 23,666
62 ! 24,599
221 • 186,306
2«8 367,119

202
77
86
64
91
167
93
158
305
522
175
358

20
15
18
17
24
26
16
29
46
100
35
63

6
5
1
3
2
10
2
12
16
25
8
18

176 j 76, 553
5 7 |! 34,616
67
34, 320
44 | 41, 683
65 ! 43, 210
131 | 190, 480
75
40, 745
117 | 180,028
243 I 233,505
397 i 471, 380
132
67, 939
277 277,051

342
M.22

74
'26
,7

13
5

255 I •• 219,300 63,686 ,'10,873 j'144,741
'91 ' r 64, 677 i '22,628 ! '7,998 ! •'34,051
v ii,452 !
*38 ; v 15, 936 i 1-4,484 i

1,769
3,336
62, 373
44, 884

17,493
35, 565
11,674
22,462
16, 618
60,610

171 21,726
21, 263
35, 742 88,191
163, 993 158, 242

1,688
11,972
6,770
16,340

14,569: 7,615
54,369
7,901
20,893 :
5, £22
108 23.313! ;
10,899
19,921
19,498 . 2,264
5,055
25,835 .'
12, 320
31,368 : 39, 434 119,678 '
31,895 '
7.045 i 1,805
31,629 ' 52, 660 95,739 i
79,446 30, 272 123,787 |
111,088 117, 259 2 4 3 , 0 3 3 ••
4,216
35,684
28,039
87,448 25, 768 163,835 |

p Preliminary.

27, 418
9,117
23, 556
58,061
104, 243

1,856
3.333
3,381
15,893
401
23,816

17,466
13, 824
8,407
7,720
3,489
706
2,525
14,
4,258
4,105
9, 357
17,990

16 i 10,952
' 40 | ' is, 893
18 i v 15,499

' ltevised.

Banks suspended and banks reopened.—The statistics of bank suspensions relate to banks closed to the public, on account of financial difficulties,
by order of supervisory authorities or directors of the bank. Some banks reopen before the end of the calendar month in which they were closed;
such banks are included, in the record of suspensions for the month as given in the table. Reopenings are recorded as of the month in which they
occur, and include for any given month reoponings both of banks closed during the month and of banks closed earlier.
Deposits.—Figures of deposits in banks suspended are as of date of suspension whenever data as of this date are available; otherwise they are
as of the latest available call date prior to suspension. For banks reopened the figures of deposits are not as of date of reopening, which are seldom
available, but are taken from the record of suspensions.
Bad: figures.—See annual report for 1930 (Tables 66 and 67).

MEMBER BANK HOLDINGS OF ELIGIBLE ASSETS
[In millions of dollars]
Holdings of Government securities * and eligible paper (including paper under rediscount)
By reserve city banks
Date

;
U. S. ;
Govern- , Eligible ;
ment se- paper j
curities
|

2,730
2, 832
2, 577
2,469
2,403
2,619
2,640
2,682
2,777
3,584
3,871
3,942
3,706

2,349
2,582
2,688
2. 865
2,713
2,542
2,285
2, 271
2,100
2,045
1,870
1,787
1, 505

T

t

By " country " banks
!
: U. S.
j \ Govern- j Eligible '
j ment se- j paper i
\ curities
i

5,079 :
5,414
5,265
5,334
5,116
5,161
4,925
4,953
4,877
5,629
5,741
5,729
5,211

932
974
929
912
814
818
772
764
708
776
836
994

1,811
1,761
1,773
1,733
1,684
1.662 i
1,620 i
1,541 |
1,438 j
1,373 ;
1,328 I
1, 209
1,068 !

Txnut nu lu

2,744
2,735
2,702
2,645
2,498
2,480
2,392
2,305
2,146
2,149
2,164
2,203
2,056

By all member banks
U. S. . I
i Govern- ! Eligible
' ment se-'; paper
j curities
3,662 :
3,807 |
3,506 '
3,381 !
3,217 i
3,438 I
3,412 i
3,446 '
3,485 i
4,360 !
4,707 !
4,936 !
4,694 :

i Exclusive of approximately $650,000,000 of Government securities pledged against national bank note circulation.
Back figures.—See BULLETIN for March, p. 156.




4,160
4,343
4,461
4, 598
4,397
4,204
3,905
3,812
3,538
3,418
3,198
2,996
2,573

Total
7,822
8,150
7,%8
7,979
7,614
7,642
7,317
7,258
7,023
7,778
7,905
7,932
7,267

Member
bank
borrowings at
Federal
reserve
banks
1,041
9S1
1,029
899
646
206
274
173
248
165
147
323

238

FEDERAL RESERVE BULLETIN

APRIL, 1923

FEDERAL RESERVE BANK RATES

OPEN-MARKET RATES

DISCOUNT RATES

RATES IN NEW YORK CITY
I
!

[Rates on all classes and maturities of eligible paper]
Rate in
effect on
Apr. 1

Federal reserve bank

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago. _
St. Louis
Minneapolis
Kansas City
Dallas....
San Francisco

Date established

Oct.
Feb.
Oct.
Oct.
Jan.
Nov.
Oct.
Oct.
Sept.
Oct.
Jan.
Oct.

Previous
rate

17,1931
26,1932
22,1931
24,1931
25,1932
14,1931
17,1931
22,1931
12,1930
23,1931
28,1932
21,1931

3H
3
3
4
3

Back figures.—See Annual Report for 1930 (Table 33).
BUYING RATES ON ACCEPTANCES
[Buying rates at the Federal Reserve Bank of New York]

Maturity

Previous
rate

Apr. 1
2Yz Mar. 25, 1932
2^:
do
2\i
do
2Yi
do
2^j
do
2Vi
do
3 ; Feb. 26, 1932

1-15 d a y s . . . .
16-30 d a y s . . .
31-45 d a y s . . .
46-60 d a y s . . .
61-GOdays...
91-120 days..
121-180 days.

2H
2H

m
2%
2%
2%

NOTE.—Rates on prime bankers' acceptances. Higher rates may be
charged for other classes of bills.

Average rate Average yield
on—
on—

Prevailing rate o n -

i Call loans i ! u . S.
Treasury
notes Treasand
ury
Re- certifi- bonds'
New ; newal
cates,
3 to 6
months

Prime
Month or week i c o m . bank- Time
mercial ers'
loans,
paper, accept90
4 to 6 ances, days a
90
months days

... (...

1931
January
February
March
April
May
June.
July
August
September
October
November
December

j 2^-3
| 2^-2%'
'
2)4
2Ji-2^|
2 -2\,
;
2
!
2
|
2
I
2
|2

1932
January
February
March
Week ending—
Feb. 27
Mar. 5
Mar. 12
Mar. 19
Mar. 26

:

i%-2?4
154-2
2 -2H
\%-2\i
1^-2

1.50
1.50
1.56
1.57
1.45
1.50
1.50
1.50
1.50
2.10
2.50
2.73

1.57
1.50
1.55
1.52
1.45
1.50
1.50
1.50
1.50
2.10
2.50
2.70

1.24
1.06
«1.38
1.49

2.61
2H-3
3H-4
2%-2£ 3 ^ - 3 % 2.50
2H-2H 23/4-3^ 2.50

2.65
2.50
2.50

2.48
2.42
«2.25

2.50
2W ZH-ZH 2.50
2%, 3 -ZVi 2.50
3 -3H 2.50
2H' 8M-8
2.50

2.50
2.50
2.50
2.50
2.50

2.11
2.00
1.97
« 2.62
2.39

\\i-2
2H-4
3 -4
3 -4

3^-3%|
3^-3% |
3^-3% |

.88

«.55
.41
.42

«.45
1.70
1.77
<2.41

1
J
3

Stock exchange call loans; new and renewal rates.
Stock exchange 90-day time loans.
3 issues—ZU, 3U, 4 per cent; yields calculated on basis of last redemption dates—1947, 1956, and 1954.
* Change of issues on which yield is computed.
' Revised.
Back figures.—See Annual Report for 1930 (Tables 36 and 37).

RATES CHARGED CUSTOMERS BY BANKS IN PRINCIPAL CITIES
[Weighted averages of prevailing ratesl
New York City

8 other northern and eastern cities

27 southern and western cities

Month

January.. ,
February..
March
April
May
June
July
August
September
OctoberNovember
December.

1928 • 1929

1930

1931

5.74
5.73
5.81
5.85
5.88
5.93
5.88
6.05
6.06
6.08
5.86
5.74

5.64
5.35
5.22
4 91
4.74
4.59
4.48
4.41
4.29
4.26
4.17
4.16

4.24
4.31
4.20
4.17
4.11
4.13
4.05
3.97
3.93
4.27
4.67
4.64

4.56
4.44
4.59 ,
4.72;

4.97
5.09
5.38
5.56
5.63
5.63
5.56
5.63

,
:
;
:

1932
4.71
4.71
4.72

1928
4.73
4.76
4.81
4.91
5.04
5.36
5.57
5.59 I

5.80 !
5.80 !
5.82 !
5.91

929
1929

5.87
5.86
5.91
3.00
5.09
6.02
3.08
6.11
6.24
6.25
6.12
5.94

1930
5.88
5.66
5.47
5.22
5.13
5.06
4.81
4.79
4.74
4.75
4.66
4.68

1931
4.61
4.63
4.62
4.57
4.55

1932
' 5.07
j 5.13
! 5.14
'
:..

4.49;
4.48 j
4.47 '

4.48
4.62
4.87
4.91

1928
5.53
5.53
5.54
5.54
5. 56
5.67
5.77
5.80 !
5.82 i
5.87 I
5.90
5.91

1929
5 94 ,
5 96
6.04
6.07 ;
6.10 !
6.16 :
6.17 I
6.22
6.27 j
6.29 i
6.29 j
6.20 |

1930
6.12
6.05
5.98
5.86
5.75
5.69
5.63
5.58
5.55
5.54
5.50
5.43

1931

!

5.50
5.43
5.40 !
5.36 I
5 26 I
5.34
5.30 '
5.28 |
5.32
5.38
5.53
5.5G

1932
5.61
5.61
3.64

NOTE.—Figures relate to rates charged by reporting banks to their own customers as distinguished from open-market rates (which are given in
preceding table). All averages are based on rates reported for 3 types of customer loans—commercial loans, and demand and time loans on securities.
The method of computing the averages takes into account (a) the relative importance of each of these 3 types of loans and (6) the relative importance
of each reporting bank, as measured by total loans. In the two group averages the average rate for each city included is weighted according to the
importance of that city in the group, as measured by the loans of all banks in the city.
Back figures.—See Annual Report for 1930 (Table 39).




239

FEDERAL RESERVE BULLETIN

APRIL, 1932

SECURITY PRICES AND SECURITY ISSUES
SECURITY PRICES
[Index numbers of Standard Statistics Co. Monthly data are averages of weekly figures]
Common stocks (1926=100)
;

Month or date

p

re-

!
trial

Number of issues
1931— Jnnuary.
February
March
April
May
June
July
August
September
October
November
December.

60

20

OH. 6 123.6
«VJ. 4 124.8
100.0 126.4
!
99.6 125.3 !
90.7 122.6 |
09.4 119.7 j
90.4 121.1 i
; Ss.5 120.7 ;
:
95.6 110.1 ,
i 89.4 . 109.4 |
I 89.0 10S.5
; 81.6 99.1 •

2
0
]*)___
23
30

road

421 i

.._.

1932—January
February
March
Mar.
Mar.
Mar.
Mar.
Mar.

Selected'groups'of industrial issues

i

Bonds 1 forrcd2
•
•
stocks TicK.il,
Public
f l t ..i|Indus- Railiii y

112 i
120 I
122 j
J00 !
J)S ;
95
98:
96
82 •

70 j
72 '

j

103
110
112
ioo i
89 :
87 ,
00 i
89 :
76 ;
65 !
68 !
54 :

. 81.0
j 80.3
! 80.8

06.5 :
9(5. 3 :
90.2 ;

58 j
50 I
57 i

54
53
54

:

06.3!
97.6 i
06.0 !
05.7
1M.3

CO !
61 j
56:
55
53

56:
57 :

SI.3
• 8:1 5
! Si.8
80.3
77.3

ut

33

37

100
105
97
87

163
178
189
170
156
153
158
154
132
112
115
96

6(5
56
46
33:
37
.34
32 ,

31
30 ,
29

53 •

52
51

t

Build-'
• Cop- Elec- I A T o :
ing : Chain | Chem-: per trical i cX-*"
1J
'uqu.il>-1
equip-i m n ," '
mobile equip-, store j ical i «and
"
inont
I brass ment : y ••

94
93
90
100

12 :

!

105
103
85 '
70
75
65 :

74
78
81
70
59 ;
58 i
60
58
47
38 |
30 :
31

78 !
S6 I
90 I
86
89 !
89 '
89 !
02 |
80 :
70
60
57

173
148
127
128
131
127
110
90
06
79

64
60
55

31
30
29 •

57 :
56 :
58 I

80
79
85

36
32
30

GO
60 j

SO

57 '
57 :
50

82 '
S2
79

31
34 .
30
20
21

106
120
129
117 ;

no I

101 •

fil
CO
53 •

80
87

50
49 ,

31
29
28

O
l
U li 1

\ ^..i
• bteel

io !

io;
162

:

174 •
!

;

j
j
!
i
:

00 •

82
91
06
79
67
62
66
61
50

28

124
132
133
116
94
85
88
81
72
59
59
41

55
58
52
47
45
46
45
40
36
36
31

43
42
45_

32
32
32

31
31
31

45
47
44
43
45

30
35
31
31
29

31
32
31
31
30

120
126
125
109
89
83
88 j
84 i
72 j
59
61
46

91
85
74
63
63
67
70
60
53
57
44

85 ':
77
77

48
47
47

82
7t>
74
71

49 !
50 I
47 i
47 ;
44

176
194
201
" 172
159
: 157 :
161
I 155
! 132
113
43 •
45 ; 114
94 ,
35

Textile

!
!
;
'
:
j
!
!
i

1
Average price of 60 high-grade bonds adjusted for differences in coupon rate and maturity.
* 20 high-grade industrials; average price.

CAPITAL ISSUES
[Long-term; i. e., 1 year or more.

UNITED STATES GOVERNMENT

In millions of dollars]

New issues
Total
(doYear and month mestic
and
foreign)

State
Forand
eign
mu- Bonds
niciand Stocks:
pal
notes ;

4,427 4,006 ' 1,043 1,076
5,557 4,588 i 1,380 2,200
6,201 5,125 I 1,352 2,452
6,314 5, HO I 1,344 2,667
7.556
6,210 j 1,475 . 3,183
• 8,040 - 6,780 ! 1,370 2, 385
10.091 • 0,420 ". 1,418 . 2.07S
:
6,900
6,004 :' 1.434 ' 2,080
1, 230
' 3,083 2.854 ' 1,220

1923.1924
1025--..
1926
1027
1928
1929
1030
103J
1931-February...
March
April
May
Juno

Julv..
August
September..
October
November..
December..
1932—January
February...

• ing

Corporate

TotaU

207
557
412
3-J8
259

202 '
550
309
333
224

228 !
120
241 i
44
Ill
119

226
120
217
44
109
J19

179
73

110
276
ioi
172
118

'
I
:
j

oe;
74
111
15
52
40
133
34

179
73

48
250
166
132
100
113
34
04
14
26
28
42
35

659
829
1,153
1,087
1,474
2.061
5,924
1,503
311.

27
9
102
20
6
2
12
12
4
24
30

' issues
(domestic
and
foreign)

421
909
!
1,076
1,125
; 1,337
1,251
: 671
! 905
220

759
025
1,046
2,220
1.858
1,422
711
040

5
7
43
15
35
2
0
24
0
2
0

IS
142
203
123
144
45
6
44
1
20
21

;
I

0
0

14
21

i Includes issues of Federal land banks and Federal intermediate credit
banks, not shown separately.
Sources.—For domestic issues: Commercial and Financial Chronicle;
for foreign issues (issue? publicly offered) annual totals are as finally
reported" by Department of Commerce, while monthly figures are as
compiled currently and are subject to revision.

110331—32




6

Outstanding at end
of month

Refund-

Domestic

SECURITIES

[In millions of dollars]
Increase or decrease
(—) during month

Month
; Total ;| and JJ
:
II n o t c s i bills
1030
September
October....
November
December

15,824
15,927
15.933
i 15,744

Total (J2 m o n t h s ) . . . . ; . .
1931

January
February
March.:....
April
May
June
July
August

September.__
October
_
November
December
_

~;

\ 14,594 i1 1,319
j 14,573 1,406
i 13,838 2.442
I 13,567 2.801
! 13,323 2,922
:
14, 152 . 2,368
>• 14,178! 2,344

16,585 : 14,179 : 2,406
2,068
2,047
2,085
2,436

17,048 ! 14,980 :
17,028 14,981
17,040 14,955
17,528 15,002 :

January
February

!
i
j
!
i

139
66
301
88
-123
275
2
63
463
-20
12
488

J 1,754
| 17,515 : 15,102
: 17,820 • 15,102

-41
-1
-2

-255 I i -169

|

Total (12 months).
1032

-109
103 i
6 !
-159 |

14,457 1,367
14,457 1,470
14,456 1,477
14,454 1,320
;..

15,P13
15,979
16,280
16,368
16,245
16,520
16,522

bills

2,413 ! - 1 3
2,718 ! 305

-f.8
103
7
-157
-86

139 :
87
-2i;
- 7 3 5 | 1, 036
350
-271 :
121
-244
-554
820
24
26 !
62
i ;
3
38
801 ;
-21
i !
38
-26 ;
351
137 ;

637
10 ,

1,117
-23
305

NOTE.—Figures relate to interest-bearing public debt; matured noninterest-bearing debt amounted to $305,000,000 at the end of February,
1032. Figures include obligations held in Government trust funds
amounting to $362,000,000 at the end of February, 1932.
Bonds and notes long-term—i. e., 1 year or more (figuring from date
of issue); certificates and bills, shorter term.

240

FEDERAL RESERVE BULLETIN

APRIL, 1932

PRODUCTION, EMPLOYMENT, CAR LOADINGS, AND COMMODITY PRICES
[Index numbers; 1923-1925 average=100. The terms adjusted and unadjusted refer to adjustment for seasonal variation]
Building contracts awarded
(value)**

Industrial production*
Year and
month

Manufactures1

Total i

Minerals *

Residential

Total

Factory employment *

Factory l

pay

Freight-car
loadings*

rolls «

All other

Cornmodity
prices

Unad- Ad- Unad- Ad- Unad- Ad- Unad-: Unad- Adjusted justed justed justed 1 justed justed justed justed justed

Unad-| Ad- ' Unad- Ad- Unad- Ad- Unad- Adjusted ijusted ; justed justed justed justed justed listed

(t)

i

84
87
67
86
101
94
105
108

83
87
67
85
101
95
104
108
106
111
119
96
81

1919
1920
1921
1922
1923
1924
1925
1926
1927
1928
1929
1930
1931

63
63
56
79
84
94
122
129
129
135
117
92
63

77
89
70
74
105
96
99
108
107
106
115
99
84

112
119
05
80

i

44
30
44
68
81
95
124
121
117
126
87
50
37

107
108
82
00
104
06
100
101
09
07
101
88
74

79
90
65
88
86
94
120
135
139
142
142
125
84

98
118
77
81
103
96
101
104
102
102
108
87
66

139
154
98
97
101
98
104
100
95
97
95
86
73

84 •

91
79 :
87 !

100
97 •

103
106
103
103
100
02
75

1927

December
1928
January..
FebruaryMarch
April
May
June
July
August. -_
September
October..
November
December
1929
January..
FebruaryMarch
April
May
June
July ...
August—
September
October __
November
December
1930
January. _
FebruaryMarch
April

May
June
July
August
September
October __
November
December
1931
January..
FebruaryMarch
April
May
June
July
August...
September
October..
November
December
1932
January..
February-

96
105
111
112
110
110
108
105
110
116
118
115
109

102

95

102

97

102

111

131

111

125

111

136

95

97

99

88

98

96

106
107
108 1 113
114
108
108 ; 113
111
108
109
108
105
109
110 ; 110
1
116
113
117
115
• 117
115
110
118

107
110
109
109
108
109
110
111
114
116
118
120

100
99
98
95
104
104
104
111
115
123
118
106

103
102
105
105
106
102
102
105
107
111
114
111

111
121
138
155
159
154
142
137
138
134
122
107

137
138
137

116
128
143
149
140
127
116
118
115
112
03

139
142
136
130
130
133
126
119
118
115
114
106

108
115
134
157
168
166
155
154
154
150
130
117

135
135
137
142
143
144
137
141
147
152
146
145

94
06
07
96
96
06
06
98
100
100
09
98

96
96
06
06
96
97
97
97
98
98
00
100

96
101
103
100
101
101
08
103
104
107
104
104

92
94
97
96
105
101
105
109
119
119
109
94

102
102
103
101
103
100
102
103
105
106 i
107
106

96
96
96
97
98
97
97
98
99

117
122
126
128

120
119
120
122
123
127

114
116

116
119
109
114
117
114

98
102
121
139
143

120
81
84
118 !
121 ! 106
123 I 1 1 7
121
113
102
126
124
94
122
84
110
73
107
67

97
94
101
100
97
95
03
86
73
67

111
116
133
158
168
178
170
166
144

139
137
137
142
141
152
149
152

97
100
101

100
100
101
102
102
103
103
103
102
101

101
108
111
111
111
110
106
111
112
111

95
99
98
102
109
110
111
115
121
118

108 :
107 i
105 \
108
107 ;
108 1
107
107 i
106 :
104 i

96

99
95

99

103

97

99

102
89

102
102 :

94
93

96
94
03
02

94
98
98
97
94
91
83
82
83
81
75
74

89
91
00
93
07
95
95
96
99
97
86
74

100
99
96

93
91
90
Q0
89

74
74
75
77
79
77
78
76

69

68
73
75
74
72
68
64
64
62 ;
59
56
56

68
68

52
54

117
121
124
124
126
125
120
122
123
121

119
119
119
121
122
125
124
121
121
118

108
96

103 :

103
109
106
107
105
99
91
90
92
90
84
77

106
107
104
iO4
102
98
93
90
90
88
86
84

82
87
89
90
89
83
80
78
77
75
r
73
'68

83
86
87
88
87
83
82
78
76
73
73
74

71

72
»69

p'/l

128

110

•

127
120
122
123
119
107

125
122
121

93

101

114
110

102
110
109
110

105
107
104
104
101
97
92
89
89
86
85
82

108
104
91
94
102
103
100
101
101
105
90
89

106

98
89
88
90
87
:

82

74
:

81

88
90
91
90
;

101
103
116
116
118
121

119
110

82
S6
87
87
86
82
82
78
75
71
71

127
127

86
. 84

79
77
76
72
p
71
66

•"73

82
83
84
85
85
82
82
92
84
80

70
*70

71
"68

* 75

82

74

116
115
118
116
110
116
110
108

98
104
104
102
100
96
94
05
92
93
88
86
89 i
91 i
87
86
86 i
79 :
77
84
81
85
77
P78

137 ;
137 ,

130
132
131
134
136
132
127

144
136
129
112

104
94

84
78
89
102
113
125
116
107
85
82

75
68
59
58
68
77

82

78
74
68

*152

67
61
56
49
52
53
52
40

104
126
141
156
178
166

47
40
52
52
48
43

128
148
144
140
148
140
135

115 ,
108 ;
94 !
86

106
105
09

76
73

46
44
54
62
61
54
48
48
52
51
46
37

00

93
03
03
03
91
80
86
85
86
84
81

77

08

79

71
79
77
73
65

37
42
50
52
47

44
47
47
44
40
37

103
102

06

95
104
102
101
105
00
95
81
81
78

6b i
61 I
59 i
59

53

41
36 j
32

35

55
49
38

32
29
26
20

33
32
30
27
23

25
23

31
27

16
15

19
17

i

104
105
103 1

13/i
116
109

59
52
43
30

63

140
139
132
136

102
102
102
]02

75
93 :
89
104
98
100
107 ! 06
104
85 !
101
84 :
04 : 82
87 ; 81
81
80
71
76
57
67
39
50
33
30

41
35

76

!
1
j
1

91
90
87
84

83
82
i

81

80
:

77
78
78
77
75

74 I
74 i
75 i
71
69
68 :
|
66 I
67 j

78

78
78
78
78
76
75
74
73

70
69

97 1
96 !
93
92
89 !
87
86
84
84




95

96

96
95
95

97
96
96
95

87
84
84

84
83
81
80
78
77
76
75
73
72
72
72

78
70
61

82
80
80
80
79
77
76
72
69 :
69
68
69

58
59

fi4
62 !

67

78

i As revised in March, 1932; for back figures see BULLETIN for March, p. 104. For indexes of groups and separate industries see p. 281.
For indexes of groups and separate industries see p. 282.
•Average per working-day.
**3-month moving average, centered at second month; see BULLETIN for July, 1931, p. 358.
tRevised index of Bureau of Labor
Statistics (784 price series); 1926 = 100. Index numbers for groups of commodities are given on page 283.
r
» Preliminary.
Revised.
« Corrected.

J

97

96
96

71

70
70
69
66

APRIL,

241

FEDERAL RESERVE BULLETIN

1932

MERCHANDISE EXPORTS AND IMPORTS
[In millions of dollars]
Merchandise exports

Merchandise imports

Excess of exports

Month
1928

January
February. .
March
April
May
June.
July..
August
SeptemberOctober
November-.
December..
Year.

1929

1930

411
371
421
304
423
389
379
379
422
550
545
476

488
442
490
425
385
393
403
381
437
529
442
427

5,128

5,241

1931

411
349 j
370
332
320
295
267
298
312
327
289 '
275
3,843

250
224
236
215
204
187
181
165
180
205
194
184

: 1932

, 1928

150 1
v 155

!
._
.

:

_-_
:
._
•

2,424

1930

1929

338
351
380
345
354
317
318
347
320
355
327
339

309
309
384
411
400
353
353
309
351
391
338
310

311
282
300
308
285
250
221
218
226
247
204
209

4,091

4,399

3,061

1931
183
175
210
186
180
373
174
167
170
169
149
153
2,090 - .

1932

• 1928

136
*13L !
!
!
!
:

!
:

!
.

.

1930

1929

1931

1932

73
20
40
19
69
71
61
32
102
195
218
136

119
72
106
15
15
40
50
11
86
137
104
117

100
67
gq
24
35
44
46
79
86
80
85
66

66
49
26
29
24
14
6
-2
10
36
44
31

1.037

842

782

334

14
P24

i

Preliminary.

DEPARTMENT STORES—SALES, STOCKS

FREIGHT-CAR LOADINGS, BY CLASSES

[1923-1925 average=100. For back figures see BULLETIN for November,
1930, p. 686]

[Index numbers; i 1923-1925 average=100. Source of basic data: American Railway Association]

Index of stocks (end of
month)

Index of sales 1

i October

Adji isted
Adji istcd
Wit hout
Wit bout
for sejisonal seasor alad- for se*isonal seasoi lal advarii ation
justi nent
vari*ition
justr nent

Month

1932

1931

1932

97
'78
98
78
97
100 •
97
95
91
88

79
80
92
101
97
90
65
67
87
93
95
142

64
04

January
February
March.
April
May
June
July..
August
September
October .
November
December.
Year

_

DO OO

1931

83 :.._
81

_.

91 !

1931
8S
86
84
83
83
82
81
79
81
80
79
78 !

1932

1931

75
73

78
81
87
87
85

1932
67
69

80 1
75
76
84
88
89
73

82

1
Based throughout on figures of daily average sales—with allowance
for changes from month to month in number of Saturdays and for 6
national holidays: New Year's Day, Memorial Day, Independence Day,
Labor Day, Thanksgiving Day, and Christmas. Adjustment for seasonal variation makes allowance in March and April for the effects
upon
sales of changes in the date of Easter.
r
Revised.




1932

1931

ber

r December

Janu- February

ary

Adjusted for seasonal variation
Total...
!
Coal
_
I
Coke
i
Grain and grain prod- •
ucts
.!
Livestock..
j
Forest products
;
Ore
Miscellaneous
i
Merchandise2
—|
|
Total
I
Coal
_
i
Coke
|
Grain and grain prod- I
ucts
i
Livestock
|
Forest products
!
Ore
;
Miscellaneous
_|
Merchandise1
_.j

69
72
44

68
65
44

69 i
65 i
47 |

62
61
45

74
64
33
36
69
83

76
69 \
33 I
23
72
83

63
66
30
40

78
60
27
29
62
78

78 !
83 I
45 :
.
82 j
86 i
33
50
81
87

70
72 |
46 •
•
80 •
80 :
31 !
16 i
70
85 ;

i Based throughout on daily average loadings.
I n less-than-carload lots.
J

31

Without seasonal adjustment
61
70
50

58
66
47

66
52

62
CO
25
10
57
77

66
65
25
7
54
75

74
57
27
7
53
75

242

FEDERAL RESERVE BULLETIN

APRIL, 1932

FOREIGN BANKING AND BUSINESS CONDITIONS
ANNUAL REPORT OF THE NATIONAL BANK OF BELGIUM

The annual report of the National Bank of
Belgium for 1931 was presented to the general
meeting of shareholders on February 29, 1932.
Sections of the report are given herewith:1
Gold policy.—The suspension of convertibility of the pound sterling demonstrates that
the gold policy followed by the National Bank
of Belgium during recent years has been in the
best interests of this country.
On September 22, 1931, the bank, utilizing
the rights of conversion which it had maintained in respect to its accounts with foreign
correspondents, increased the gold reserve from
8,129,000,000 to 12,460,504,000 francs, and
thus built up for the note circulation a reserve
consisting exclusively of gold and of so large
a volume that, even in the midst of the present
difficulties, the belga is one of the most adequately secured currencies in the world.
In addition to the foreign exchange converted
into gold, the central bank continued to hold
balances in the London market, amounting to
£12,643,079.
In view of the part which English currency
plays in international trade, and especially in
our export business, this amount is by no means
excessive. Our procedure in this matter has
been based on the convention of October 18,
1926, which allocated to Government account
such profits as might accrue from the investment abroad of foreign currencies arising from
the stabilization loan and entering into our
reserves. Moreover, inspired by a justifiable
sense of international monetary solidarity and
acting in complete accord with the Minister of
Finance, we have avoided any measure which
might react unfavorably on the position of the
London market.
On the day following the British currency
crisis, the sterling balances wTcre made the subject of a convention with the Government,
under date of September 23, 1931. By virtue
of this convention and in accord with existing
agreements, the bank kept its sterling balances,
in its accounts, at the purchase price, while
the Government gave security for the loss on
exchange—this security to be amortized out of
1
The report, available in French, contains in addition tables showing
the operations of the bank in detail and sections dealing with the general
situation, currency and exchange, Government debt, security market,
industry, commerce, and agriculture, unemployment, etc. For earlier
reports see BULLETIN for April, 1931; May, 1930; April, 1929, 1928, 1927,
etc.




the income from the sterling balances. The
Government recently introduced a bill approving a new convention which included the adoption of measures providing, on the one hand,
for the cover of the loss on exchange
by shortterm Government securities,2 and authorizing,
on the other hand, the more profitable
investment of the sterling balances.3 The bank has
agreed to contribute to the amortization of the
exchange loss an amount of 60,000,000 francs,
to be paid in successive annual installments of
at least 10,000,000 francs, beginning with 1933.
The provisions thus made give complete assurance, in spite of serious and unexpected
events, of the soundness of the assets guaranteeing our currency.
Discount policy.—The credit policy of the
bank, in the present situation, was governed
by a determination to maintain the liquidity
of the institution, in order that it might continue able to meet with ease the special needs
of a period of intense crisis, as well as the transfer of funds which will become necessary whenever the solution of international difficulties
revives the investment of capital abroad.
In the existing situation nothing could be
more dangerous than a policy—such as is often
recommended—of systematically granting credits in proportion to the increase of frozen assets.
Excessive and ill-considered manipulation of
credit distorts the banking mechanism and, instead of mitigating crises, aggravates and prolongs them.
Throughout the past year the bank maintained its discount rate at the very low level of
2}i per cent, which had been established on
August 1, 1930. In spite of the facilities thus
put at the disposal of business, the bill portfolio declined gradually during the first half of
the year, owing to business recession; but
shortly afterwards the financial crisis, which
broke out first in Germany and then in England, brought about a reverse movement, increasing the volume of rediscounts. This development led the bank to follow the example
of most other banks of issue and to raise its
discount rate (on January 13, 1932) to Z% per
cent.
J

The proposed term of these securities is 6 months, subject to renewal.
* It is proposed that sterling balances equivalent to not more than
550,000,000 Belgian francs may be invested in obligations of the Belgian
Government issued in foreign currencies previous to Jan. 1, 1930.

243

FEDERAL RESERVE BULLETIN

APRIL, 1932

BALANCE SHEET OF THE NATIONAL BANK OP BELGIUM AS OF DECEMBER 25,

1931

i

» j
: Francs (in , "Dollars
thoui thousands) • (in
sands) i

Resources

Gold reserve
___
12,751,477 i
Subsidiary coin
.
201,008 .
Belgian and foreign bills
' 4,558,303 ;
Advances on Belgian public securities
__•.
297,7485'
Belgian treasury bills and other public securities i
(royal decree of Oct. 25, 192G)
_
; 1,440,000*
Public securities
_
.
198,645^.
Public securities in the surplus account of the !
bank
_
_
i
85,607 i
Public securities in amortization account of real ;
VJ
estate in use, furniture, and
fixtures
i
59,684
Insurance-fund assets
_
i
99,863
Bills deposited for collection in current account..
84.190
Real estate in use
.
95,402$
Furniture and fixtures
•
4,700
Provision for the manufacture of bank notes, and ::
labor involved
__
2,582
Interest earned or receivable..
6,693
Assets held in pledge or to be liquidated (art. 34
.
of the statutes)
'
2,826

Total resources..
1

_

' 19,

Conversion at par of exchange: 1 franc=$0.0278.




!

Liabilities

354,491 Bank notes:
Issued
5,588 ;
A,. Held by the bank
_
126,723
8,277
In circulation
40,032
j
5,522 Current accounts:
Treasury
|
:'
Individual..-.
.
2,380 ,!
j
1,659 |
2,776 j
2,340 : Bills deposited for collection in current account. _.
_
2,655 I Capital.._
_
131 I Surplus
| Amortization account of real estate in use, furniture, and fixtures
_
72 i
186 Insurance fund..
__
i Interest and rediscount
79 ! Taxes payable to the Government:
Tax on fiduciary circulation
Share of the Government in profits on foreign exchange
_._
Share of the Government in profits (art. 38
of the statutes)
Unpaid dividend for second half year of 1931
552,912

Total liabilities..

i
Francs (in Dollars
thouthousands) (in
sands)

19,455,757
1,440,402

540,870
40,043

18,015,354

500, 827

103,956
1,189,934

2,890
33,080

1,293.890

35,970

84,190
200, 000
87,674

2,340
5,560
2,437

59,702
100,066 |

1, 660
2,782

6,127
10,421 |
8,431 I
10, 231
12,821
19,888,907

170
290
234
356
552,912

244

FEDERAL RESERVE BULLETIN

APRIL, 1932

ANNUAL REPORT OF THE GERMAN REICHSBANK
The annual report of the German Reichsbank for 1931 was presented to the general
meeting of shareholders on March 16, 1932.
The main text of the report is given herewith:1
The world is in the midst of an unparalleled
crisis. The severe economic depression which
has prevailed for some years in almost all
countries was aggravated during the past year
by a devastating breakdown of confidence; this
upset credit relations both national and international and set back the process of reconstruction. Currencies recently reestablished on a
gold basis with great difficulty have again become inconvertible; international trade has
been thrown into confusion and greatly purtailed by the further raising of tariff barriers,
by the rationing of imports, and by measures of
foreign-exchange control. The continuing decline of prices and further growth of unemployment have interacted to increase the gravity of
the situation. In the face of a great world surplus of commodities and productive power, consumption declines further and further. No
country in the world seems to have been left
untouched by the prevailing distress. The
nations are becoming impoverished, and are
sweeping together toward ruin. Governments
have been unable as yet to halt the disastrous
course of these consequences of the World War,
though the action taken by the President of
the United States showed a disposition to be of
international service, and knowledge of the
true causes of the international economic crisis
is coining to be more widely diffused. In particular, the two committees of experts which met
in August and December at Basel to examine
the situation of Germany, and the "standstill"
committee which met in Berlin toward the end
of the year, have explained these causes to the
world fully and clearly. They are to be found
chiefly in the complicated mass of political
debts, which tower up in direct opposition to
the natural laws of international trade, bringing
in the long run more detriment than benefit even
to the creditors themselves. These debts, 13
years after the close of the war, still stand in the
way of any normal functioning of world trade
and any genuine state of peace and confidence.
In the system of war debts the reparation
burden imposed upon Germany has a very
special significance. The Dawes experts stated
as early as 1924 that Germany could pay repa* The report, available in German, contains in addition tables and
charts showing the operations of the bank in detail. For earlier reports
see BULLETIN for August, 1931; May, 1930; March, 1929; May, 1928,
1927, etc.




rations only out of a surplus arising from a
favorable balance of trade and of payments,
and that reparation transfers effected by means
of foreign loans and credits would merely confuse and postpone the issue. Notwithstanding
this fact, however, Germany reparations in the
following period were effected out of loans and
credits, because Germany had not achieved and
could not achieve an economic surplus. This
became quite evident when foreign loans and
credits to Germany were to be suspended as a
result of the world crisis. Leading German
authorities have called attention repeatedly to
the economic insanity and general futility of
the reparations system, especially in view of the
fact that the sharp decline of world prices has
increased the burden of Germany—contrary to
the intentions of the Young plan—by not less
than one-third. In the meantime the granting
of credit to Germany, which in spite of all the
warnings of the Reichsbank had been most
extravagant, was succeeded by withdrawals,
and the reason for this was not only the need of
foreign countries for their capital, together with
a fear of radicalism in Germany as a result of
increasing distress, but also and in particular a
growing realization that Germany, under the
continued pressure of reparation burdens, was
being driven into bankruptcy. Events at the
time when the Hoover moratorium was accepted, the German banking crisis, the "standstill" negotiations, and the findings of the Basel
experts strengthened this realization. The decisive point has now been reached. The system
of reparations and other political debts has
finally proved futile in view of the international
interdependence that characterizes modern economic relations. There is no other solution
except to renounce at once de jure this system
which is de jacto dead. Only thus can the
world be saved from new economic and social
disasters whose consequences no one can forsee,
but which might well surpass all the damages
of the World War. The experts' committees
have agreed unanimously that a final political
settlement on these matters is of immediate and
vital importance for all countries. Only such a
settlement can reestablish confidence at home
and abroad in German economy and in German
politics—the first essential of recovery from the
present industrial and financial crisis. The
frank admission by responsible statesmen that
they are willing to accept the practical conclusions of the experts' recommendations is therefore not only good political strategy but also
inescapable economic necessity.

APRIL, 1932

FEDERAL RESERVE BULLETIN

Development of the crisis.—The credit situation in Germany during 1931 was largely
dominated by loss of confidence. Ever since
the autumn of 1930 the German money market, owing to political factors at home and
abroad, has been depressed by withdrawal of
foreign credits. The failure in May of the
largest Austrian bank led to greatly increased
withdrawals which, aggravated still further by
other developments, gave rise within a few
weeks to the worst crisis ever experienced.
Withdrawals by foreign creditors assumed the
proportions of a run on Germany, which spread
throughout the country and in July led to a
complete suspension of credit and clearing
transactions. The Reichsbank was confronted
with a twofold duty—to maintain currency
stability and protect the liquidity of the German banking system. To this end the Reichsbank had to be prepared to grant credits on a
large scale, as well as to part with gold and
foreign exchange. The Reichsbank performed
both duties until it became evident that the
claims of foreign creditors could not be checked,
and that continued demands on the German
banks would exhaust the resources of the banks
and in addition the supporting resources of the
Reichsbank as well.
The assistance of the Reichsbank was limited
by the fact that the methods of fighting a run
through readiness on the part of the central
bank to extend credit and deliver currency are
not applicable in unlimited degree to a run
originating abroad, because the central bank
can not use its notes for foreign payments but
must deliver gold and foreign exchange. It
became especially clear that—as a result of
the large short-term foreign indebtedness of
Germany, which the Reichsbank had opposed
without much success since 1925—the gold and
foreign exchange holdings of the Reichsbank,
even when they were at their maximum, were
in fact only nominal, and failed to reflect the
German exchange position. But the steadily
growing domestic run—owing to its close connection with the foreign run on one hand, and
on the other, to the flight of capital reported
from abroad—could not be isolated and stopped
by further deliveries on the part of the Reichsbank. Thus the bank was forced to defend its
position by applying credit restrictions in increasing degree. The restrictive measures were
closely bound up with the attempt made by the
Reichsbank, in the hope of preventing bank suspensions, to obtain some sort of "standstill"
agreement. The Reichsbank received support
from a wide circle of the business community, in




245

a letter under date of July 7 from industrial
firms and banks to the president of the Reichsbank, offering to create a guarantee fund with
the Gold Discount Bank. This expedient did
not, however, obviate the necessity of credit restrictions as well, for every discussion with
foreign central banks regarding a "standstill"
agreement proceeded on the assumption that
the Reichsbank would first defend its own
position by accepted methods.
After the meeting of the directors of the Bank
for International Settlements on July 13, it
was evident that adequate assistance was not
available from the bank, and the closing of the
German banks on that same day was imperative owing to increasing panic in Germany.
Nothing less than actually closing the banks
could have created a situation in which payments could be resumed with considerably less
risk than before, by effecting a distinction
between payments at home and payments
abroad through legal exchange regulations and
temporary "standstill" agreements. At the
same time, the establishment of the Acceptance
and. Guaranty Bank strengthened the liquid
position of German credit institutions to such
an extent that deliveries of currency and withdrawals of deposits—greatly augmented as a
result of the widespread lack of confidence—
could be effected without embarrassment.
Within these newly established limits something like normal credit and payment operations
were possible.
The Reichsbank then decided, after the
period of greatest danger was past, not to increase the discount rate automatically as provided for in the bank law whenever the reserves
fall below the legal minimum; rather, it extended its credits not only in adequate measure
but also as cheaply as circumstances permitted.
The credit crisis itself, conditioned by international causes, and the consequent severe
business depression, were beyond the power of
the Reichsbank to remedy.
An important contribution to restoration of
confidence within the country was the fact
that the Reichsbank, in complete accord with
the Government of the Reich, refrained strictly
from experimenting with the currency. In
future, as in the past, the bank will consider it
its highest duty to insure the stability of the
reichsmark by the use of all available means.
Banking and credit measures.—Even before
the crisis the situation of the German money
and credit market had been unsatisfactory,
because the increasing stringency in foreign
markets that began in the autumn of 1930

246

FEDERAL RESERVE BULLETIN

prevented the improvement which might otherwise have taken place at the beginning of the
year. With demands on the Reichsbank increasing over the previous year in spite of the
decline in the volume of business, and with the
state of the exchanges uncertain, it was
impossible for the Reichsbank—in contrast to
many foreign central banks—to make even a
temporary reduction in its discount rate. It
was only by the sternest self-denial on the part
of communal and other public bodies that the
market for mortgage bonds—and, to a lesser
extent, that for municipal obligations—was
supported; and then only temporarily, for the
increasing withdrawal of foreign funds soon put
an end to all prospects of improvement.
Within a few weeks' time the steadily growing
severity of the financial crisis destroyed all
German credit operations with foreign countries and seriously injured banking and credit
operations within the country. Interest rates
rose rapidly. The money market was unable to
function and the Reichsbank became the only
source of credit. The large withdrawals of
foreign exchange in the first half of June compelled the bank on June 13 to raise its discount
rate by an extraordinary amount—from 5 to 7
per cent. The action of the President of the
United States of America caused short-lived
hopes which were frustrated by opposition to the
immediate and complete operation of the plan.
Distrust, both at home and abroad, continued
to grow. In spite of some credit assistance
from abroad, the note reserve fell below the
legal minimum. To protect its rapidly diminishing gold and foreign exchange reserve the
Reichsbank, in view of the isolated position of
Germany, was forced to put into effect the
severe measures of credit restriction previously
prepared.
The closing of the D arms tad ter und Nationalbank on July 13, and the declaration of a
bank holiday on July 14 and 15 for the protection of the other banks, caused an almost complete suspension of payments both within the
country and to foreign countries. Reichsbank
policy had to deal with new and extraordinary
probiems. After the Reich had come to the
aid of the two most seriously endangered institutions—of the Darmstadter und Nationalbank
by announcing, while the bank was still closed,
that the Reich would undertake to guaranty its
liabilities, and of the Dresdner Bank through a
large-scale capital participation—the Reichsbank was able to maintain the stability of the
reichsmark. By its readiness to grant credit
to an unprecedented extent, it quickly restored




APRIL, 1932

the free flow of payments within Germany.
It was necessary first to introduce compulsory
sales of foreign exchange, and then to relax the
previous measures of credit restriction, a step
which could be safely taken only after further
increasing the cost of credit. The discount
rate was raised to 10 per cent on July 16 and,
with the complete abolition of restrictions on
the withdrawal of bank deposits, to 15 per cent
on August 1. The lombard rate, as a result of
the undesirable increase of lombard accounts,
was raised by two stages up to 20 per cent. In
order to preserve a certain flexibility in the
credit measures of the Reichsbank, customers'
acceptances, made eligible for discount during
the emergency, and offered in substantial volume by the commercial banks after their regular
stock of bills had been exhausted, were temporarily discounted on a 10-day basis. By this
means the heavy burden on business of interest
payments arising out of emergency discounting
was limited to a short period. Within a month
the careful preparations made for restoring
normal payment operations enabled the Reichsbank to lower the bank rate by stages to 8 per
cent and the lombard rate to 10 per cent.
The disturbances in the German credit structure had further effects abroad, and led to a
series of discount advances in other countries
which narrowed the margin between German
and foreign rates. Nevertheless the Reichsbank, in connection with the anticipated
measures of the Government for reduction of
prices, wages, and interest rates by emergency
decree of December 8, favored a reduction of
the bank rate in spite of the seriousness of the
exchange situation, the greatly reduced ability
of the money market to function, and the
strong demand for central bank credit. On
December 10 the discount rate was reduced to
7 per cent and the lombard rate to 8 per cent,
as a measure of cooperation on the part of the
financial agencies in the reduction of the cost
of business operation. Developments in the
first months of the new year have justified this
policy.
The checking of the run and, later, the resumption of payments, compelled the Reichsbank to grant exceptionally large credits. Business was assisted by the increased circulation,
which expanded by about [2,000,000 reichsmarks—an emergency measure supported by
the Reichsbank. The portfolio of domestic bills,
which at the end of May had amounted to
1,500,000,000 reichsmarks, increased ^rapidly
and at the close of the year stood at 4,500,000,000 reichsmarks, including amounts specially

APRIL, 1932

FEDERAL RESERVE BULLETIN

allocated to cover the central bank credit of
$100,000,000 mentioned elsewhere. This increased offer of bills was due chiefly to the
financing of the demands made on the Reichsbank for foreign exchange as a result of the
withdrawal of foreign funds. The struggle
against the abnormal demands for payment
necessitated further assistance for the commercial banks including temporary mobilization of frozen commercial credits. The Acceptance and Guaranty Bank, founded by a banking
consortium with cooperation of the Reichsbank
and official participation by the Reich, was
entrusted with the task of providing support for
endangered credit institutions, and of maintaining or securing for them a credit status with the
Reichsbank, by jointly assuming their bill
liabilities. It was especially important for the
Acceptance and Guaranty Bank to assist
savings banks and clearing houses, which had
become heavily involved as a result of the crisis,
to remain solvent and to function as provided
by law. Through restoration of solvency to
the savings banks, their depositors were gradually reassured, and withdrawals caused by unfounded distrust were presently checked and
finally brought to an end.
A series of further remedial measures was
intended to mitigate the severity of the crisis
in special cases. One of these measures was
promotion of German export trade. The seri
ous situation of German agriculture also required the provision of credits for crop financing; these were provided in part on the basis of
warehouse receipts. In spite of serious protests, in which the Reichsbank joined, a special
guaranty system for agriculturists in the
eastern districts, amounting almost *to a
moratorium, was established, and resulted in
a heavy demand on the Reichsbank for agricultural credit. So far as possible the Reichsbank tried to prevent any damage to credit.
In many other cases also the Reichsbank had to
render assistance.
In order gradually to create facilities for
future relief, the restoration of the private
discount market was initiated by the foundation
in December—with substantial participation
by the Gold Discount Bank—of the Joint
Stock Discount Co.
In the emergency decree of October the
Reichsbank was appointed joint administrator of the liquid reserves of the Organization of
Savings Banks. The provisions of this decree
are now being carried out. Bills of the savings
banks discounted by the Reichsbank during the
critical period of 1931 have been repurchased
in fair volume since the turn of the year.




247

Gold and foreign exchange.—As already
stated, the Reichsbank resolutely applied its
gold and foreign exchange reserve to maintaining the solvency of German banks which
were hard hit by the withdrawal of funds by
foreign holders. At the end of the half year
it availed itself of the opportunity presented
to obtain credit assistance from abroad. The
credit placed at its disposal jointly by the
Bank of England, the Federal Reserve Bank of
New York, the Bank of France, and the Bank
for International Settlements amounted to
$100,000,000. It was first granted for only 20
days for quarterly settlement purposes. Later
there were several extensions, the most recent
being that of March 4, 1932, for a period of
three months with a capital amortization of
10 per cent. Because of the continued withdrawal of foreign balances, and, in addition,
a flight of domestic capital—probably greatly
overestimated at the time—this credit brought
the Reichsbank only temporary relief. In
order to procure further amounts of foreign
exchange, it had to draw upon an American
contingent credit of $50,000,000 which had
been available to the Gold Discount Bank for
a number of years. Nevertheless the decline
of the reserve ratio below 40 per cent—to
which the general council of the Reichsbank
first gave its consent on July 7—could no
longer be averted. From the end of May to
the middle of July the Reichsbank paid out
gold and foreign exchange to the amount of
almost 2,000,000,000 reichsmarks, while sales
of gold during this period aggregated more than
1,000,000,000 reichsmarks. Nearly half this
gold was lost to New York, almost one-fourth
to London and Paris, and smaller sums to
Amsterdam and Switzerland.
Exchange control.—The threatened exhaustion of available foreign exchange reserves
compelled the establishment of a decisive control in order to confine the use of exchange to
legitimate commercial transactions, while
refusing unnecessary or postponable payments.
In the emergency decree of July 15, the Govern! ment of the Reich ordered the centralization
! of all exchange transactions in the Reichsbank;
and on July 18 it required the delivery to the
j Reichsbank of foreign currencies and of claims
in foreign currencies. The emergency decree
of August 1 made the previous regulations
more severe and transferred the technical
management of exchange operations to special
"offices of foreign exchange control" in connection with the provincial revenue offices.
Negotiations with foreign creditors were
begun, looking to the continuation of the

248

FEDERAL RESERVE BULLETIN

APRIL, 1932

existing short-term foreign credits. These retained for five years; and stipulates that
measures enabled the Reichsbank to acquire repayments of principal in foreign currencies
more foreign exchange, which, however, soon shall be effected only by mutual agreement
had to be paid out again. The "standstill" between the Reichsbank and a committee of
agreement between German and foreign banks, the foreign creditor banks which is to meet
which became effective on September 17, periodically. A "committee on foreign debts"
imposed heavy burdens on account of the was appointed by decree of January 26, 1932,
release, in instalments, of the reichsmark to advise on all German payments abroad on
credits of foreign banks. In this release account of interest or amortization, both
was included the liquidation of pending for- within and without the credit agreement.
ward exchange contracts. It was necessary
Capital market.—There has been almost
also to repay maturing seasonal and stock no activity in the capita) market, especially
exchange credits. On the other hand, notwith- since the middle of the year, as a result of the
standing the efforts of the Reichsbank, full use serious maladjustment between supply and
of the credit lines held open under the agree- demand and the sharp decline in quotations of
ment could not be achieved because of ex- every type of security. On July 13 the Gercessive interest rates, the exchange risks at- man stock exchanges were closed. They were
taching to various foreign currencies, and other reopened in September for a short interval;
obstacles. Moreover, the contraction in the but the increasingly heavy selling pressure
volume of foreign credits continued, so that by for both foreign and domestic account, inthe end of the year the Reichsbank had lost a duced by fear and necessity, led to a second
further 600,000,000 reichsmarks in gold and closing of the exchanges on September 21
foreign exchange.
following the suspension of the gold standard
Under these circumstances it was necessary by the Bank of England. Official stock exto continue to make foreign-exchange regula- change dealings have not yet been resumed,
tions more severe. Beginning early in October and the publication of unofficial security quothe Reichsbank found it necessary to impose tations is still forbidden under the decree of
various credit restrictions upon firms which July 15. In order to prevent the balance of
disregarded the foreign-exchange regulations. payments from being burdened through the sale
The emergency decree of November 17 made of German securities by foreigners, it was made
possible a more complete control of foreign- obligatory under the decree of November 10 to
exchange receipts from exports. Statistics com- obtain official sanction to convert the proceeds
piled by the Reichsbank showed that foreign of the sale of securities into foreign exchange.
exchange arising from German export trade is,
The German Railways A){ per cent loan,
for the most part, acquired by the bank. In j issued at par in October in the domestic capital
spite of this, the Reichsbank's stock of foreign ! market under most unfavorable conditions, is
exchange declined steadily owing largely to ! tax exempt and grants amnesty for past tax
capital withdrawals by foreign countries, which | evasions. It should, even with its relatively
amounted to about 1,000,000,000 reichsmarks low interest rate, offer an inducement to those
in the period from September 1 to December 1. who sent their funds abroad to repatriate them
The serious foreign-exchange situation made for the purpose of creating work at home in this
it impossible for the Reichsbank to comply time of need. The loan, of which about 250,with the wishes of business groups for the 000,000 gold marks has been subscribed, placed
introduction of a regular forward exchange little immediate pressure on the German marmarket; but the bank offered to arrange direct ket, since the first installment of the subscripforward exchange contracts between trading tion price was not due until January, 1932.
and industrial concerns without charge.
Bank supervision.—To cope with the crisis
The "German Credit Agreement of 1932," in the German credit situation an official superwhich was signed on January 23, 1932, and vision of banks, similar to that in other counbecame effective on March 1, contains certain tries, was established by the decree of Septemprovisions for consolidating the German short- ber 19. AVhile preserving in principle the
term foreign debt. It arranges for a year's complete private responsibility of the banks for
extension of foreign credits amounting to more their management, this decree makes it the
than 5,000,000,000 reichsmarks; provides for duty of the newly established banking board,
a limited conversion of obligations maturing of which the commissioner of the Reich is a
within that period into 10-year, 6 per cent member, to supervise general banking policy
bonds, or into German securities, mortgages, or from the standpoint of public interest and under
real estate in the form of investments to be certain circumstances to exert an influence on




APRIL, 1932

FEDEKAL .RESERVE BULLETIN

general policy—within the limits prescribed by
law and in accord with the regulations adopted
by the board. The Rcichsbank is represented
among the five members of the board by the
president of the Reichsbank, as chairman, and
by one other member, the vice president of the
Reichsbank's board of directors, who was
appointed by the chairman.
Bank reorganization.—After the beginning
of the banking crisis the restoration of the
complete operation of the German banking
system was one of the most immediate duties
of the responsible authorities. Thanks to the
good sense of the population, the resumption of
banking activities was accomplished with surprising case, yet it became increasingly evident
that a new and secure basis of confidence must
be created through application of very exceptional measures. To this end a plan of general
banking reorganization was drawn up by the
Government and the Reichsbank, and made
effective in February, 1932. The plan provided for a comprehensive reform which was
designed to restore liquidity by writing off
losses, and also to indicate plainly in the balance sheet the amount of the losses. This
necessitated not only a final settlement of the
affairs of the Darmstadter und Nationalbank
and of the Dresdrier Bank, but also a thorough
reorganization and strengthening of the banking system, especially at the head odices. The
fundamentals of the plan arc as follows:
Complete reconstruction of the assets by the
application of reserves and, so far as necessary,
by the Government's taking over the balance
of the loss, which was sometimes very considerable.
Creation of new reserves through resources
obtained from the Government in the form of
Treasury bills of various kinds and maturities,
which will be gradually repaid out of earnings
and from premiums on the issue of new shares.
Rebuilding of capital and restoration of a
suitable proportion between permanent resources and the volume of business.
The preliminary conditions for this reform
were met by cancelling a portion of the shares
already in possession of the banks, writing
down other shares outstanding, and at the
same time rebuilding capital funds through
the sale of new shares or of shares remaining
in the banks' portfolios and not written off.
Only a small part of the new shares was taken
by the public. The Reich had already taken
over a part; for the rest the Rcichsbank
decided—relying on its reserves which had
been further augmented from the profits of the
year 1931-—to participate in considerable vol-




249

ume on its own account. This decision, taken
by the directors at the beginning of January,
1932, laid the foundation for the bank reform
now in progress, and provided inducements for
this type of reform. The Reichsbank will place
these assets at the disposal of the Gold Discount
Bank; the latter will increase its capital by
200,000,000 reichsmarks through the issue of
new shares which the Reichsbank, under
authority conferred upon it by the banking
law, will take over for cash payment. At the
Gold Discount Bank the new class C shares
issued for this purpose will be kept entirely
separate—and this applies to dividends also—
so that the other operations of the Gold Discount Bank will continue to be unaffected by
and independent of the new business. This
separation will be so complete that the actual
investment and management of the assets originating with the Reichsbank will not be conducted by the Gold Discount Bank directlybut
by a special board of trustees. Since the independence of the bank and the board of
trustees is thoroughly safeguarded, any confusion of central bank functions with private
banking interests seems to have been eliminated.
The participation of the Reichsbank and the
Gold Discount Bank in private banking business is regarded as a temporary measure. As
soon as opportunity offers, the shares which
they have taken over will again be offered for
sale in the capital market.
The reform reveals the heavy sacrifices which
the crisis has demanded of the banks and their
shareholders. Open and hidden reserves, and
almost the entire capital, had to be applied to
the necessary reconstruction of the balance
sheets. In addition, bank mergers were undertaken to increase profits (the Dresdner Bank
with the Darmstadter und Nationalbank, and
the Coinrnerz-und Privatbank with the Banner
Bankverein); and with the same object arrangements were made to avoid duplication of bank
branches and deposit offices.
The Reichsbank is aware of the extraordinary
character of the measures undertaken. It believes, however, that any improvement in the
liquid position of the great deposit banks resulting from this plan will sooner or later work
to the advantage of the status of the Reichsbank through credit repayments by these
banks. The immediate and more important
purpose, however, is to restore a banking
system which can really function—which can
give business the help which it so urgently requires. If the Reichsbank—after the distribution of its previous customary dividend—had

250

FEDERAL RESERVE BULLETIN

not used these funds in the manner described
in this report, corresponding sums would have
had to be applied to reserves or writing down
assets. The Reichsbank preferred to create a
sound economic position by strengthening the
German banking system rather than merely to
correct its balance sheet items.

It is to be hoped that all these efforts of the
Reich and of the Reichsbank may not fail of
their effect, so that the reorganization of German banking will not only restore confidence
within the country, but in its broader aspects
may help to restore credit operations with
foreign countries.

BALANCE SHEET OF THE GEEMAN REICHSBANK
Reichsmarks (in
thousands)

Resources

Gold, not under lien (gold bars, domestic and
foreign coins):
In the cash offices of the bank
With foreign banks of issue
Cash balances:
Reichsbank notes
Subsidiary coin..
_
__.
Rentenbank notes
_
Notes of German private banks of issue

872,039
111,916

207, 720
26, 658

983,955

234, 378

I
,
'

Securities owned.._
Doubtful assets
Land and buildings
Claims resulting from the settlement with the
Reich
_
Miscellaneous:
I
Bank notes no longer fit for circulation
I
Postponed claim on the German Govern- •
ment in virtue of sec. 11, 4 of the law of |
Aug. 30, 1924, for the liquidation of i
Rentenbank notes in circulation
i
Credit balances with postal check olTices
I
Bills held as security for the $100,000,000 ;
credit
I
Other claims._
_
_
j

Total resources
1

__

Conversion at par: 1 reichsinark = $0.23*2.




AS OF DECEMBER 31,

4. 313, 576

1,027,494

23, 322
960,146
19

Dollars i
Reichsmarks (in (in thouthousands) sands)

Total bank-note issue..
Credit balances of giro and current accounts
Noninterest bearing deposits.__
Original capital
Legal reserve fund (including transfer from net
profits of the year 1931)
Reserve for pensions, etc
Reserve for probable losses

1,006,320 i
19,417 Reserves for:
1, 264
Printing of new notes
493
New buildings.

45, 215
2, 885
25, 266

1931

Liabilities

4, 224. 687
81,515
5, 305
2,008

Credit balances in foreign currencies (of which ;
the equivalent of 160,187,000 reichsmarks was
assigned as cover for the notes in circulation)..:
189, 821
Foreign notes
12,111
Foreign bills and checks
_
106,072
Domestic bills and checks:
97, 910
Treasury bills of the Reich
_
4, 030,839
Other domestic bills and checks
80
Silver..
__
_
___
Loans against collateral (lombards), viz:
Loans against securities (sec. 21, 3b, c, d,
of the bank law)
_.
Loans against bills (sec. 21, 3e, of the bank j
law)
i
Loans against goods (sec. 21, 3f, of the bank •
law)
'
Loans against treasury bills of the Reich
(sec. 21, 3g, of the bank law)

Dollars
(in thou- |
sands)

APRIL, 1932

_

Special reserve fund for future payments of
dividends
_...._
Miscellaneous:
Interest on bills due in 1932
Dividends due but not yet paid...
Dollar treasury notes of the Reich to be
redeemed by the Reichsbank
Liabilities in foreign currencies
Other book debts
Net profits for the year 1931, less 10 per cent
assigned to the legal reserve fund
__.

172,448

41,077

60,095

14,315

3,491

832

8, 599

2,048

244, 633

58,272

161,898
19, 377
30,000

38,564
4, 616
7? 146

100, 024

23,826

1,148

273

70,083
12,103

16,694

419,314
214,096

99,881
50,998

716, 743

170,728 i

; 11,007,039

2,621,877 i

Total liabilities

_

9,001,612 2,144,184
754, 772
179, 787
98
23
35, 730
150, eoo
59, 254
80,000
183,945

14,114
19,056
43, 816

26,968
27,024

6,424
6,437

53, 992

12,861

46, 235

11,013

37,122
180

8,842
43

190
428,225
199,414

102,003
47, 500

665,132

158,434

12,000

2,858

; 11,007,039

2,621,877

45

FEDERAL RESERVE BULLETIN

APRIL, 1932

251

ANNUAL REPORT OF THE NATIONAL BANK OF SWITZERLAND

The annual report of the National Bank of
Switzerland for 1931 was presented to the
general meeting of shareholders on February
16, 1932. Sections of the report are given
herewith: 1
The money market.—The Swiss money
market was influenced by two movements
which operated in the same direction and at
times simultaneously—the inflow into Switzerland of foreign funds and the repatriation of
Swiss foreign balances. Events in Germany
and Austria accentuated the flight of capital
to Switzerland, and the fear of a breakdown of
international payments led our banks to repatriate foreign balances in large amount. The
Layton report gives some idea of the extent of
these withdrawals, although the figures need
to be corrected in the light of more complete
information made available since its publication. The situation abroad and the banking
difficulties experienced in Switzerland made it
necessary for our banks to increase their cash
reserves against possible calls for payment.
This insistence on a liquid position wTas the
outstanding characteristic of the money market.
The private discount rate, which advanced
from 1 to l){ per cent at the end of 1930,
weakened again under the pressure of abundant money; it declined to 1 per cent in January, and even to a fraction below that in March.
The feeling of confidence created by the international situation in the spring brought the
rate up to 1% per cent in April, a level w^hich
prevailed until mid-July. On July 16, when
international credit conditions suddenly stiffened, the rate rose to 1% per cent, and the
following day to 2 per cent, the level of the
official rate; after some weeks it declined again
to 1% per cent and later to 1% per cent. In
the spring the demand for funds, and in the
summer the attitude of reserve on the part of
lenders, produced the same effect.
The extremely low discount rates and the
dearth of bills offered for discount made it impossible for the banks to maintain their discount business; and it was for the most part
only the larger institutions, with their cheap
correspondent accounts and day-to-day money,
which continued this type of transaction.
1 The report, available in French and German, contains in addition
tables showing the operations of the bank in detail, and sections dealing
with the international crisis, the suspension of the gold standard by
Great Britain, central bank cooperation, commercial treaties, unemployment, industry and agriculture, prices, the Swiss stock exchange,
public finance, the Swiss railways, capital market, etc. For earlier
reports see BULLETIN for April, 1931; May, 1930; April, 1929, and 1928;
March, 1927; April, 1926, etc.




The rate on foreign bills declined from 2}i
to l)i per cent during the period from the end
of 1930 to the middle of February, 1931, and
for several months remained below the official
rate. Although the National Bank did not
discount these bills except conditionally—that
is, when their maturity did not exceed 30 days—
they were eagerly sought by the banks during
the first half-year. After a slight upward
movement during the period April to June, the
rate rose sharply from 1% to 4% per cent in
July upon the announcement of the difficulties
of the Darmstadter und Nationalbank and
other suspensions of payments in Germany; in
October it was raised to 5 per cent and remained
unchanged throughout the rest of the year.
Discount policy.—The discount policy of the
bank was based on the same principles as in
the previous year. The conditions imposed on
the discount of foreign bills proved to be fully
justified. As suspensions of payment increased, the directors of the bank were faced with
the question to what extent they could furnish
credit through their note-issuing authority in
aid of foreign bills coming into Switzerland,
payment of which was suspended by a moratorium. The directors could not, however,
undertake as part of their normal discount
operations the liquidation—that is to say, the
rediscount—of frozen foreign obligations. The
directors preferred to safeguard their full
liberty of action for those cases where Swiss
business applied to the bank for accommodation. On the other hand through normal discount operations the bank put its credit, as
hitherto, at the disposal of the national economy
whenever the liquidity of the bills and the
signatures by which they were secured offered
adequate guaranties. But the central bank
did even more; in addition to its ordinary
operations it agreed to rediscount bills in
situations where the need of assistance was
urgent. If the commercial banks seemed at
times unwilling to extend credit, they were
undoubtedly hampered by the anxiety to insure
the liquidity of their position and by their
concern to avoid losses and to guard the security
of their capital; but on the whole it may be said
that they met all reasonable demands for
credit.
On January 22, 1931, the bank lowered its
official rate to 2 per cent from 2% per cent,
which had been in effect since July 10, 1930.
The bank hoped that this reduction would

252

FEDERAL RESERVE BULLETIN

APRIL, 1932

revive trade, check the inflow of foreign funds, The National Bank did, in fact, accept the
and thereby have a favorable effect on the gold which the banks offered to it, but made an
money market. Above all this reduction of agreement with them that they should furnish
the rate was intended to correct the unduly a much larger proportion of foreign exchange
high exchange level of the Swiss franc; and this which the central bank itself would convert
was in fact accomplished, although for only a into gold. During the year the volume of forshort time. When in May the Federal Reserve eign exchange bought by the National Bank
Bank of. New York reduced its official rate to (chiefly dollars, English pounds, and French
V/2 per cent, the National Bank did not followfrancs) amounted to about 15,400,000,000
the example, being of opinion that a further francs. These large acquisitions caused an inreduction of the rate could neither bring about crease in reserves; from the beginning of May
any lowering of interest rates-nor reduce the to mid-September, when the inflow of exchange
premium of the Swiss franc. On the other ceased for a time, the aggregate gold and forhand, the bank maintained its rate at 2 per eign exchange reserves of the bank rose from
cent in September, when the Federal Reserve 953,000,000 francs to 1,782,000,000 francs.
Bank of New York, the Bank of France, and Owing to the continued conversion of foreign
a number of other central banks advanced their exchange into gold, the stock of gold exchange
rates. A similar measure could not have been at the end of the year amounted to 103,000,000
justified in the case of Switzerland, cither from francs, while the gold reserve had risen to
the point of view of credit demands upon the 2,346,900,000 francs.
bank or the exchange position. The yearly
The suspension of the gold standard by
average of the official discount rate was 2.03 England on September 21 came as a great surper cent, compared with 2.89 per cent in 1930. prise to the National Bank. Before that date,
As the greater part of the bills presented for however, it had already begun to liquidate
discount originated with trade and commerce a great part of its sterling balances. During
rather than with the banks, the average the summer, especially, when sterling showed a
currency of discounted paper was somewhat steady depreciation, the board of directors
longer.
began to question whether this exchange should
Gold and foreign exchange policy.—The gold be held in any large amount as note cover of the
and foreign exchange policy of the National National Bank. The solution was to adopt the
Bank had to adapt itself to the most diverse measures already described, so that the bank
conditions. In December, 1930, the Swiss was protected against any very considerable
franc averaged one-half of 1 per cent above its loss.
Doubts have been expressed from time to
dollar parity; the reduction of the discount rate
in January, 1931, had the effect of bringing the time concerning the maintenance of the gold
rate down to par and even below par in the fol- standard by Switzerland and the stability of
lowing months. The dearth of opportunities the franc; it has sometimes been asked whether
for investment within the country led to a the suspension of the gold standard might not
strong demand for foreign exchange, and, be helpful to industry. Such a measure, howaccordingly, the central bank made the desired ever, would not only depreciate the savings
funds available to the market. The crisis of of the Swiss people and our foreign balances
confidence abroad, however, and the conse- denominated in Swiss francs; it would also,
quent steady inflow of funds forced the Swiss sooner or later, lead to a rise in prices and an
franc up again in May to a level above parity, increase in the cost of living, and would create
so that the question of correcting the constant difficulties for our exporting industries which
premium of the Swiss franc had again to be met would have to pay higher prices for the raw
by the board of directors. A further reduction materials purchased abroad. •* >aThe case of
of the discount rate for the purpose of stopping England shows clearly how an unstable exthe inflow of funds into Switzerland had little change handicaps trade and ^payments. It
chance of success, because this flight of capital proves also that suspension of the gold standard
would still have been directed into Switzerland, is by no means a guaranty of stable prices;
regardless of the discount rate. The only during the last four months of the year, indeed,
means at the disposition of the bank to prevent the Swiss index of wholesale prices declined
a new advance of the franc consisted in acquir- from 106 to 103, whereas in England the
ing foreign exchange. In view of the very wholesale price index rose from 92.2 to 106.4
large offers of foreign exchange, it was no longer during the same period; and the cost of living
possible to allow the gold standard free play. index from 145 to 148 in November.




APRIL, 1932

FEDERAL RESERVE BULLETIN

253

It is unnecessary to explain at length why- of notes assumed such proportions, however,
there could be no thought of putting gold coin that the directors of the bank finally requested
into circulation during 1931. Both foreigners the banks to exercise restraint in delivering
and Swiss nationals hoarded notes, and it was Swiss notes to foreigners. The banks complied
obvious that gold coins would be greatly pre- with the request of the National Bank, so that
ferred to notes for hoarding purposes. On the further measures, such as an embargo on the
other hand, when the metal is concentrated export of notes, were unnecessary.
in the central bank, it can be used at any
Both banks and private firms felt the need
moment to protect the exchange. The figures of increasing their liquidity and strengthening
given above show that the bank made use their cash position; even gilt-edged securities
largely of its authority to import gold. As the were sold at sacrifice prices for the sole purpose
Federal mint, however, was fully occupied of obtaining cash assets; and these forced sales,
with other tasks, it was able to execute only impelled by panic fear, gave a further impulse
two small orders for private account. The to hoarding.
minting of gold coin for account of the National
Although this fever for hoarding showed how
Bank was likewise in inconsiderable amount.
great was the confidence inspired by the
Total imports of gold amounted to 1,173,- central bank, it was prejudicial to the economic
000,000 francs, of which 33,000,000 francs rep- situation in general and to business enterresented gold for use in the arts and 1,140,- prises in particular. The items of the balance
000,000 francs gold arising out of banking sheet of the bank increased out of all reason
transactions. Of the latter amount, 474,000,000 and exceeded the normal requirements of
francs were imported by the National Bank, business, since the only means of guarding
and the remainder, 666,000,000 francs, by third against the consequences of an excessive departies. Whenever gold was offered for pur- mand for notes was to create an adequate
chase by the banks, the National Bank reserved gold reserve. But the printing of notes and
the right to examine each case separately, on the accumulation of a corresponding reserve
its own merits, as it had previously done. Under imposed considerable expense upon the Nathese conditions the National Bank purchased tional Bank. Moreover, the excessive hoarding
gold in the amount of 77,000,000 francs and forced the bank to restrict its credit operations.
withdrew from deposit with a. foreign central The public naturally wishes to put its savings
bank 333,000,000 francs; the remaining bal- in a safe place, but it ought to realize the conance of gold imported, or 256,000,000 francs, sequences which the withdrawal of deposits
was acquired for account of Swiss or foreign involves for the economic position of the
banks. Exports of gold amounted to about country as a whole.
19,000,000 francs.
The considerable proportion of notes of large
Note circulation.— From the end of October denominations proves clearly that the notes
to the end of December the fiduciary circulation were not issued in response to the needs of
rose from 1,498,000,000 francs to 1,609,000,000 business but were absorbed b}T hoarding; in
francs. It is clear from the explanations al- 1931 notes of 1,000 and 500 francs made up
ready given that the increase did not result almost one-third of the total circulation,
from the needs of Swiss business, but that- whereas in 1930 they represented less than
other factors operated to raise the note circu- one-fifth. During recent months hoarding
lation by half a billion francs above the level has more or less come to an end, and there
of the preceding year. The difficulties of the has been some reflux of notes from abroad.
Reserves.—The reserve against the note
Austrian Credit-Anstalt and the German great
banks, and, later on, the emergency decrees j circulation is the Tlargest ever knowrn. On the
promulgated in Germany and the consequent average for the 3 ear, notes in circulation wore
general uncertainty created a strong demand covered in the proportion of 102 per cent by
for Swiss bank notes in foreign countries. gold, whereas the legal minimum is only 40
Short-term deposits were withdrawn, but in- per cent. If the holdings of foreign gold exstead of converting them into foreign exchange, change are added to the metallic reserve, the
people more often asked for bank notes, which reserve percentage amounted to 132 per cent.
disappeared into hoards. When the crisis It should not be forgotten, however, that gold
broke out in Austria and Germany, the de- accruing from the flight of capital into this
mands for Swiss bank notes increased greatly, country can not be regarded as belonging
and the National Bank at first considered it- wholly to Switzerland. Sooner or later, when
advisable to satisfy these demands in the hope foreign countries repatriate their funds, part
of thereby mitigating the crisis. The export of this gold will leave the country. Considered




254

FEDERAL RESERVE BULLETIN

in this light, it constitutes a reserve with which
the bank of issue can meet withdrawals of
foreign exchange, or, in other words, can protect Swiss exchange. If this growth of gold
stock is regarded to-day with a certain amount
of satisfaction, its eventual withdrawal must
also be looked upon as a normal proceeding.
The National Bank is not specifically obligated
under the law to maintain a reserve against
its deposit liabilities, as it is required to do in
the case of notes in circulation. In practice,
however, it must take into consideration the
present abnormal situation and must be prepared at any time to pay a large proportion of

APRIL, 1932

its demand deposits, the volume of which at
present is very high. In order to be able to do
so, it must have the necessary cover at its
disposal. On the average for the year, notes in
circulation and demand deposits were covered
in the proportion of 90 per cent by gold or its
equivalent. The composition of the items of
the reserve have undergone some change,
owing to the fact that in September a large
j part of the foreign exchange was converted
into gold. The only gold exchange which
the bank holds at present is in dollars and
French francs.

BALANCE SHEET OF THE SWISS NATIONAL BANK AS OF DECEMBER 31,
Francs (in Dollars i
thou(in t h o u sands)
sands)

Resources

Swiss gold coin
Foreign gold coin
Gold bars

-

Total gold in vault....
Gold earmarked abroad
Total gold.

!

235,461
232,617
; 1,057,970

45,444
44, 895
204,188

I 1,526,048
, 820,845

294,527
158,423

Other cash items
Foreign exchange on gold standard countries
Foreign exchange other than gold exchange
Swiss portfolio:
Swiss bills
Rescriptions
Other discounts
Advances on security:
Eligible as cover for bank notes.
Other




452,950

3,502 i
103,032 '
4,007 |

676
19,885
773

27,729 i

5,352
68
1,253

350 '•
6,493 :

1

Government securities
Due from postal check offices
Due from Swiss correspondents.
Items for collection
___
Coupons
Interest accrued on securities
Unpaid capital
Bank premises
_
_.
Furniture and fixtures
Miscellaneous assets
_
Total resources..

2,340,893 j

34,572 !

6,672

64,499 I
152

12,448
29

64, G51

12,478

37,863
1, 345
25, 605
3,161
971
454
25. 000
3,000
(2)
5,467
2,659, 522

I
1

Liabilities

Notes in circulation
__.
Giro accounts
_
Federal accounts
Other deposits
Drafts and checks in circulation..
Rediscounts—
Capital
_.
Surplus
_
Net profits
_
I Dividends unpaid
Reserve for uninsured iisks.
Reserve for printing bank notes.
Miscellaneous liabilities
_

1931
Francs (in Dollars i
thou(in t h o u sands)
sands)
1,609,353
883,158 J
40,084 !
44,917 I
1,165
281
50, 000
10,000
5,704
10
1,000
1,000
12, 850

310.605
170, 449
7,736
8,669
225
54
9,650
1, 930
1,101
2
193
193
2,480

7,308 !
260 -|
4,942 j
610
187
8 8 '••

4,825 ,!
579 :'

O

!

1,055 ji

513,288 i
11

Conversion at par: 1 franc=$0.193.

T o t a l liabilities

_

2 Carried at 1 franc.

! 2,659,522

513, 288

255

FEDERAL RESERVE BULLETIN

APRIL, 1932

FINANCIAL STATISTICS FOR FOREIGN COUNTRIES
GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS
fin millions of dollars]
Europe
| United
countries) States

Knd of month

, Total (20 ;
! countries)! Austria

;i

1930—December.....:

10,907

•!
1931 - J a n u a r y
February
March._
April
_.
May
:
June
!
July
August
September- :
October
November...
December...

4,225
:

4,285
4,309 •
4,343
4,373
4,445
4,593 :
4.587 .
4,632
4,364
3,905
4,031
4,051

10,953
11,008
11,071
11,107
11,217
11,264
11,210
11,283
11,262
11,111
11,208
11,242

1932—January
February

P 11,289 |
p 11,304 \\

March..".

1!

4,009
3,947
3,985

;

Czechor
Belgium Bulgaria
ia giQy£]Jia
slovakia :Denmark England ; France

110 ;

5,281 I

30,

191

92 j
94 i
96
99 '
102 '
87 !
87 ;
89 :
83
86 :
82 :
78 ".

5,313 !
5.350 I
5,388 !
5, 395 :
5,428
5.351 ;
5.353 j
5,413 !
5,686
6, 062
6,109 1

30
30
30
30
30
30
30
30
27
27
27

191
197
200
201
201
199
214
221
346
357
356
354

6,184 I

27

6,296 i|
80
78 " P6.440 ||

25
25

:
!
,
;
!
;
!
;
I
:
I

I

I
!
j
i
i
|
i

352
351

Germany

10

46

46

718 !

2,100

528

10
11
11
11
11
11
11
11
11
11
11
11

46
46
46
46
46
46
45
45
45
46
46
49

46
46
46
46
46
46
46
46
44
44
39
39 !

679 >
685 1
699 !
712 1
735 !
793 i
643 !
649 |
656 •
660 j
587 '
588 i

2,176
2,192
2,200
2,180
2,181
2,212
2,290
2,296
2, 326
2, 534
2, 659
2, 699

535
544
553
564
569
339
325
325
310
273
239
234

11
11

49
49

39 !
39 I

2,808
588 .. 2, 942
P 3,002
588

226
221
209

!.._..____.

I"
End of month

1930—December.
1931—January
February _.
March
April
May
_
June
July
_
August
September.
October
November.
December.
1932—January.._
February. _.
March

Europe—Continued

Greece Hungary
7
7
7
6
6
6
6
6
6
6
11
11
ll

11
11

28
28
26
22
20
20
20
20
18
18
18
18
18
18
17
17

Italy

l a n d T Norway; Poland

Portugal

Ruraa- Spain
nia ;

1930—December...
!
1931—January
February..J
March
,
!
April
May
i
June
July
i
August
September..:
October
i
November..;
December... i
1932—January
;
February. _.i

171

39 :

9

56 I

471

65

138

249 !

19

175
179
179
181
181
200
236
260
282
336
362
357

39
39
39
39
39
39
39
39
39
46
42
41

9 :
9

56 i
56
53|
53 ,
53 i
53 i
53
53 i
54 j
54 i
54 i
58 j

466
466
467
467
468
468
439
439
439 I
434
434 I
434

64
64 I
64
64
64
64
64
62
53 j
57
55
55

126
124
124 •
124
124 :
162
225 "
229
328
422
425 .
453 ;

249
249
259
259
262
262
267
280
293
309
315
328

19 !
19 !
19 !
19 .
19 •
27 !
27 :
27 !
29 ;
31 '

18
18
18
18
18
18
18
19
19
21

31
31

21
21

296
290
P296

351
353
354

42
42

58 j

434
434

55
55

472
482 i
471 '

329 !
329 I
330 L

9
11
11
11
10 '
10
10
12
12
13

:

I
1
"

13
15

57 !

412

5 0 6 '•
497
483
475
465
451 !
416 j
400 !
370 j
363 !
358 !
344 I

397
390
378
370
362
350
322
309
281 •
270
265
253

338 '

252 :
249 '

11

!

0!

8!
0 i
0 :
0
0
0
0
0
0

0I

0 '
0i

other
Uru- , 5counguay ;
tries

17 ,

18 .

60 j

14
15
12
12
10
10
10
10
8
11
10

18
18
18
18
18
16
14
11
13
17
17
17

59 !
58
58 I
58
58 i
58 "
57
57 "
50 •
53 !
53 i
53 ,

1
:
;
;

!
:
i
i
;
I
i
!
|
i
I

!
.
:
:
i
;
:
;

15
15 i

P

52
52

:

17
17
17
16
16
17
17
12
12

13
13
13
13
13
13

Total
(5
countries)

704
704
703
709
714
724
730
714
698
706
644
570
525
505
505

Lustra-1
!.. ^
I

!
;
i
!
i
;
•
;

31
31 :

22
P22

Africa

Far East

Total :
1
I
!
(10 |. Argen- -nrri7n i Colom-i p
bia
coun- '' Una
*i"a ' i J r a z 1 1 i v^'
n
1 eru
tries)
5 3 4 j1

i tries

279
279
279
279
279
280
282
283
283
286
293
296
296

Latin America
End of month

! 5 other

U . S. S.j Yugo- 1 counSweden Switzer-:
land i R . j slavia

Japan

New
South
Java . Zea- ! Egypt Africa
land

j
75 •

128

76
76 "77
74
74
75
66 :
52
52
53
51 !
52 .

128
128
135
141
147
151
158
162
162
162
162
162

51
52

162
102

412
415
417
415
419
422
425
412
406
408
342
271
234
215
2J5

33
52
48
48
46
46
46
44
44
51
53
53
45

34
34
34
34
34 j
34 |
34
34
34
34 |
33 |
32|

45
45

32
32

20 !

20
20
20
21
21
21
21
21
21
21
21
21
P21
P21

33

34
35
31
31
32
31
33
31
32
30
37
39
40
37

*> Preliminary.
Figures for 30 countries are as of final day of month; for the other 15 countries—including England, France, and Netherlands—they are as of last
report date of month. See BULLETIN for July, 1931, p. 399.
.
.
The 5 European countries and 5 Latin American countries for which figures are not shown separately are Albania, Estonia, Finland, Latvia,
and Lithuania- Bolivia, Chile, Ecuador, Guatemala, and Mexico. None of these countries has had gold reserves in recent years in excess of
$10,000,000.
For back figures—and for additional details relating to this table—see BULLETIN for July, 1931.




250

FEDERAL RESERVE BULLETIN

APRH., 1932

GOLD PRODUCTION
[In thousands of dollars]

Production reported monthly

Estimated
world
production

Month

1
Total !

1

Rhodesia

1

!

Africa
South
A frica

Belgian
• Congo

"West
Africa

I

Canada ! Mexico

Australia

Japan

India

j

I

October. _
N ovcinbcr
December

1930
_

Total (12 months)

j

35,891
35, 312
30, 300

28,008
27,429 i
28,417 j

410,752

322,151 i

_

.

_.

.

_

_

Total (12 months)

944
935
973

419
430
441

221,520 ;

11,470

!
19,151 j
17,427
18, 791 1
18, 194 ;
18,901 !
18, 594 i
18, 959
18, 859 i
18,981 j
19,525 :
18, 073 :
18,809 !

900
898
880
917
918
920
947
918
905
93(5
941
1,041

19,142
18, 337
18,519

1931

Januarv
February
March
April
May
J une
July
•\ugust
September
October
November
Decein ber

:
:

302
243

3,802 '
4,087 :
4,082 •

1 109
1,172
1,190

895
782
903

710
709
700

037
075
700

5,000

2, 999

43,454 ;

13,827

9, 553

7,531

6,785

443
438
453
447
452
448
453
400
488
470
480
501

282
271

033
808
802
930
920
1, 092
934
1,229
910
1,240
1,321
1,181

057
764
683
094
716
003
008
054
092
079
007
004

048
580
594
501
521
490
500
510
502
073
590
579

284 •

30, 408
34,451
35, 910
30,129
30, 501
30, 508
30, 333
30, 977
37, 008
38,008
30, 908
37,113

28,248
20,291
27, 750
27,909
28,341
28,408
28,173
28,817
28, 908
29,848
28, 748
28, 953

438, 382

340, 401

224, 803 j

11,193

5,540 1

3,510 •

55,310 ,

12,879

12, 132

8,201

0,815

* 37,505

p 29,345

19. 587 |
» 18,894

921

400 j
453 i

480 .

4,834 j

P877

» 1,181

628

534

i
;
i
.

285 •

277 .
250 !
208 "•
272 i
282:
323
349
324 !
327 .

,
!
!
i

4,192
4,033
4,213
4,012
4,448
4, 823

;
i
'
:
j

4 , 0 2 5 ••

4,004 :
4, 900
4,928 :
4.837
4,974 .

1,282
1,012
989
1, 331 !
1,209 :
1,104
815
1. 229
1.075
1,042
915
877

1932
Jaiuiarv

February

v Preliminary.
NOTE.—The figure for total world production in 1930 is that published in the annual report of the Director of the Mint for 1931. The differenc e
between this figure and the total production reported monthly in 1930 is $94,001,000, or $7,883,000 on a monthly average basis. The monthly estimates of world production in 1930 represent the sum of this average difference and the figures actually reported monthly. For 1931-32 this average
difference, of which about half represents United States production, is increased by 3.5 per cent—the ratio of increase of United States production
in 1931.
The figures reported monthly are not in every instance complete for the area indicated. Those for West Africa represent the output of the
Gold Coast and Sierra Leone; those for the Belgian Congo, the output of the Kilo-Moto mines; those for Australia, total output with the exception
of Tasmania and Northern Territory; those for Japan, the output of the leading mines; and those for India, the output of the Mysore district.
For annual figures of world production of gold extending back to 1873 see the annual report of the Director of the Mint for 1931, p. 241.

GOLD MOVEMENTS
[111 thousands of dollars]
United States
Net imports from—
Month

1930
October.November
December

Total
! net
i imports

>rance

-8,181

j 20,369 ".
_.i 35,151
_j 32,742

T o t a l (12 mos.) -! 280,087

China !
Argen- Brazil Colom-i British!
bin, I India Hong I
Kong :

Bel- ;N"ether- Switzer-: Can- ' „
gium i lands
land

"-ill
-275;-73,675|

- 4 , 208|
22, 8851

1,2S1
.557
395

575
14,384
4,922:

15,405
5,000

6,872;

20,390

20,2221

87,770

i 19,503
: 57,500'
20,561"'
j—337,085
! 89,43f >
i 50,858.

-4
8i
i
1,501s
-10
.-24,087'
2| - 4 , 1 7 2 !
-349:
0S5 -324,500 - 9 , 078 - 3 5 , 9041 - 1 7 , 617.
333
-30
-f>7j
-39l'
-515:
4, 2 4 9 - 1 5 , 1 5 0 ! - 5 , 8 0 1 ! - 9 , 857 - 1 , 270

I
22, 550,'
530J
1,272
303!
4, 032|
924;
1, 503!
1,105'
1,052.
20, 725:
4(ifi;
4, 871.
8, 802!
2, 20S8,837'
4,200:.
o, 000 - 1 , 239!
7, -10S1
989J
4, 513
1, 341!.

Total (12 mos.)-: 145,325!

0, 797-344,514-15, 5 8 3 - 5 0 , 327j-19, 708:

81,130

:
:
I
I
!
- 7 4 , 9 5 8 ; - 3 , 1 9 9 - 8 3 , 783.-12, 553J - 6 , 2 5 7 ' - 1 , 7 5 9
- 9 0 , 507 i
- 2 3 5 - 9 8 , 203 - 1 7 , 859; - 8 , 672i
-251
-26,742 i
-37,533! - 0 , 3 4 1 !
j
-0

2,140
8,40»S:
7,002

1931
January
February
March
April
May..
June

July
August
September
October
N ovember
December

1932
January
February
M a r c h »".

!
I
;
_._!
.!
:
•

!•
34,372 ._
10,142
25,045,
49,510'
49,030
03,847

!

>
_:
9=

3
1
50.
•* 19,101

=
.__•

5J
2L|

1 $25,990,000 imported from Germany.




-2>
1CJ

J

-17!

2

m

!

9,007 ;

|

1

9,289

'

ll,001i

1(3;

14,782;.
40,0'J9:
4,92:{|_._
8,30f):
5,383
25,770
15,474.

22, 207 j 111,203,
1,103!
9.ri()i
2,375!

] , 124
1,742;
1,107

9, U()|
1, 157!
2.C83J

$11,000,000 imported from Germany.

!
!
:

!

__:
!
!

3.022
116
2,990'
80;
3,359!
155'
87'
142
3,095
16

_
__:
4

2,042

4,895!
3.105.

10.

15,110

8,004

I
3ti0l
919.

2, 948

4,077!
2,575;
I

732J
099
249'

|
All
i other
j counI tries
13, 75()'
10,250 !
_..!

1,083
716
3,171

22.211; 150,009'

30,838

801!
2, 739:
l597
7, 796:
960.
6, 301:
1,544'
1,010;
3,59«"5, 533
1,644;
023 ;

1, 204
748;
2,412
1,580!
2,845
2, 7411
2, 260
2,004
847 ,
399 1 30, 842
24>>i
2,980
l,24(ii
25,000 M 3 , 4 3 5
3, 5SG
!
1,378
22, 501 i
75.932! - 1 , 0 5 0
4,775
68,285!

34,210 199, 280j
107
819!
2,903

9, 9091
19,441
!

v Preliminary figures.

07,332
2,471
940
1,226

257

FEDERAL RESERVE BULLETIN

APRIL, 1932

GOLD MOVEMENTS—Continued
[In thousands of dollars]

Great Britain
Net imports from—
Month

Total
net imports • ! U n i t e d

:

Germany

I States : France

1930
October. _
November
December

23,085

January
-43,470
February
i
2,443
March..-.
'
6, 452
April
_
_; 24,084
May
| 19,122
June
. . . i 54, 300
July
...:• -130,808
August
_! -24,150
September *>
_! - 9 , 251
October *>
• 13, M0
November *
j -44,977
December »__
-15,002
T o t a l (J2 rnos.)p. : - H 3 , 817

:

283 ,-208,831 i - 7 8 , 8 3 5 j - 9 , 0 9 0 •
-72,010
-18,178
-7,793
:
-344
-290
—232
-110,144
-13,333
.'
-774
;
- 0 , 800
i -01,412
l
-24,939

-1,483
-1,772
-1,017
-92
-420
37,51-1
1, 705

| - 2 , 001
! - 7 , 790
| - 0 , 317
I

-142 -4,251
-101 . -014
-19
-6S5

2,850
12,395
10,501

-981-23,190

57,896

-992
-153
-194
-120
-133
- 3 , 338
-1,058
-13,218
-10,108
-2,458
-10,003
-18,504

7. 823
8,485
112
310
2, 753
389
6, 028
C02
095
1,003
092

- 1 2 , 582 - 3 1 0 , 801 i 33, 704 - 3 0 , 952 - 1 1 8 , 319 - 0 1 , 005

28, 922

-1,500
11
-827
970
-4,144
-7,086

1932

-19
- 1 0 , 751
- 9 , 145
-35
-72 I
-119
-2
-00
-515
-155

An<?tra

N e t h e r - SwitzerSouth
lands i l a n d
America

-10 |
-20,827 ! - 2 , 0 8 1 !
-4 !
-39,682 i
-940 |
-05,750 ! -9,903 ! -1,218 |

10,062 .
-1,905 !
-35,383 .

Total (12 mo?.)..

Belgium

-270
-14
18
05
140
-82
-50,133
- 2 4 , 373
-18,419
-8,591
-12,370
-4,290

l?J
lld

South
All
Africa, : other
-Rhodesia, coun: West Af- i
tries

19,907 ,
5,371 I
4<i4 ;
—8,177

1,526

116,415 j
380
375
365
3,407
398
511
10,090
15,549
12
419
1,107
04

10,983 |

32,083 :

740 j
781 !
977 i

1,555
371 I
1,808

22,138 •
17,932 :
20,997

-574
3, 430
4,183

213,774:122,803
20, 373
17,489
21,382
23, 090
10,185
21,021
21,042
17,801
19,359
21,017
15,420
19, 499

4, 363
2,858
-704
- 3 , 528
-256
- 2 , 6-47
-382
-599
-494
-256
1,049
442

233,747

440

j

January.
February..
March *>_..

-7,320
- 0 , 1S2
-6,330

-4,129 i -04,955
2,250 I -52,712
-169 ; -40,317

-134
-750 :
-59 i

-6 :

-3,584
- 7 , 537
-4,808

-247
—3. 723
-11,507

105 j
2,220 '
1,007 i

45,986
30,001
25,129

17,002 |
20,884 !
20,506

-352
1, 420
1,109

I

Germany *

France

Net imports from—

Net imports from—

Month

Total
net .
imports United

States

1930

Total (12 mos.)-j 460,268
1931
January
February
March
April
May
June
July...
August
September
October.
November
December

February-

"~"l
erIands

-38
77'
-29

Total

land

United ; EngStates '• land

countries

-35!

585' -93,515
628.
1,185
1,060'
9, 250

42

90,938 274,514. 65,352125,183-1,127

5,403-14,000

263

I

67,819'
,
30,205
10,558,
:
2,730
-12,090-12,749
- 9 , 5 5 8 ' -0,320:
149,150
72, 952
418
209.
273, 734 243, 950i
_ 122, 372 99,870.
13,881
3,164

Total (12 inos.)- 728.176
1932
January.

1

37,142 83,493
37, 472
-2|
03,998. •
I

121,147
38,172
05, 035

October
November
December

"i
Eng- '' Gerland • many

__

74,007
184, 229

65,0621
82,580

40.735
90,947

-46.
2

6,755 - 9 , 8 9 9 ;
9,601 - 1 , 5 9 2

1 $29,229,000 imported b y Great Britain from Spain.
1 $29,233,000 imported by France from Spain.

Netherlands

Switzerland

67,948! -84,496-11,908;

All
other
countries

U. S.

150:
60
45.

1,8331 - 8 3 , 9 0 9 - 1 2 , 3 4 8 1
141'
3i;
1,046 i
91
69,
7, 693'

1,321;
67,031:
- I ' -15
-1
11,960
— 1;
805:
2,008:
35,992
1 -38.
12,098
251
-1
10.
598
1,247;
9,043!
! -18
934
-7
Hi 383
503!
2,218
| -13
-3
0, 371
257
I -20
425!
21S1
310 4, 114. - 2 1 - 8 , 202
6211—205, 543 >-25,927 -40,029,
-9
29,872. - 0 , 2-13 >-10,963 - 1 , 9 4 9 :
29, 520 89, 786J - 1 9
- 2 9 - 5 , 990
78, 300
011.
934!
112;
;
- 1 0 -1,818
1.137! - 1 0 , 9 4 7 I
902 :
547;
-153
i, 0(;0 - 3 , 553
5,085 - 3 1 , 473 i
6S1
21, 73S
120!
01 22,741 -42,572
40, 417
- 4 1 , 908 I
18
1,78
49:
1
- 2 3 2 -22, 380!
26,132
7, 203
875
7:
542

328,130 312,501 100,050 18,775-81,207

France

1,325;

!
j
12;

711
-93
1,349
12,849

I
172
31 10, 338;
751
03
22 9,826i
16
103!
895
79
7,718
469
177|
41
47 10, 327:
95
309
45
42' 5,109:
431
424'
- 9 7 , 030' -24,159 - 6 , 1 1 3 5, 154,8' r-10,839
'54
1,227
rl5l!
18' 5,218!
210
80
548|
-23
!
!
3 -5,558,-11,859
-80
- 5 , 9 5 1 -10, 905! - 2 0 , 020 5,183!
78
:
18 - 1 6 , 4 5 5 - 2 5 , 5 9 4
-4
56
17
150
103

49,807>247, 950 :--36,100-35, 221 -102, 019-55,142-03,800 58, 932 -14,475
1,401"
2,091

328 ;
-5,202!

10
4

-504
-884

071.
-5,501'

_

104
1,053

3 $17,555,000 exported b y G e r m a n y to Belgium
r
p P r e l i m i n a r y Qgures.
Revised.

* Since German figures for individual countries are subject to semiannual revision, those given for months in 1932 are preliminary in character.
Figures for total net imports are final.




258

FEDERAL RESERVE BULLETIN

APRIL, 1932

GOLD MOVEMENTS—Continued
[In thousands of dollars]
Netherlands

Switzerland

Net imports from—
Month

Total
net
imports

1930
October
November
December

i

Total (12 m o s . ) -

United
States

229
115 :
10 i

-7,724

_|

249
-118
-150
-433
-519
24,384

1,018

-60
35
31

12,063 •
-39
-21

-20,528

11,932 •

276 i

19 I

, ..
60,076 'i

19,020
30,598
36,551

,
_!
i
!

191567 '

All
other
countries

Germany

12,139
35
3

1931
January
February
March
April
May
June
July
August
September
October
November
December

Net imports from—

16.413
21,551 :
1,449 j

-14
-65 :
-145
-21 i
9,820
60,722 i
15,387 .
14,781 : -17,572
-1,113
7,982
-2.325
8,849

Total
net
imports

-43
—164
-142
-392
-382
24,176
-229
-556
-113
17, 455
4,717
11, 672

-92
-76 |
-18
-158

6
-29
-2
-13
207
-232
-128
i 3,831
-479
« 3,413
-78

United Englandj France
States

Germany

South
Africa

All
other
countries

3,775
99
267

-330 I
-17
1

-173 I
-112

-237
-279
-306

22,204

1,911

-1,643 I

-2,270

671
-54
-111
-10
-18
17,475
3,597
18, 096
25, 505
94, 339
43, 572

-16
-58
-39
-11
6,110
-36
50
1
8,270
25, 604
-75

-223
-185
-153
-38
-123
-146
-69
» 6, 751
« 7,181
209
11
55

-42
-32
8,220 I
2,300 i
66 :
23 !
4,519 |
886 !

19,687

332
11,044
16,577
44,196
408
203

Total (12 mos.)__
304
-630

British India *
Net imports from—

Month
: Total net
imports

1930

October
November
December

_

_

Total (12 months)
1931
January
February
March
April
May
June
July
August
September
October
November
December—

-

_

_..

Total (12 months)

_.

England

Iraq

i

967 .
1,323
682

290
300
-8

10
433
201

152
259
154

•

57,072 j

8, 081

8,053

2,402

-1,024
323
-20
102
295
- 2 , 254
-1,539
-979
-291
-10,179
-17,610
-39, 539

94
211
418
199
99
170
404
224
993
23

138
113
144
118
167
146
79
202
400
279
372
152

-19,085 • -72,721

2,835

:
,
____|
_.-'

_

United
States

Australia i
a n d New •
Zealand '

!
-280
880 I.!
943 ;.
600 I .
090 ; .
-4
-1,752 ':
-803 .
-270 . •""-I6"|
175 ! - 2 , 1 9 0
-20,058 : - 8 , 2 7 3 j
—24,217 ]; - 3 , 3 0 7 !
-45,590
-5,294 I
-95,088

,
'
j
';

South
Africa

Gold production
•All other in India 5
I countries
in India

400 !
24 ;
123 !
20,513 j
247
49
113
74
24
25
70
738
479

109
248
152

039 i

077 I
702 !

-30
17

Increase

1,606
2,036
1,367

12,023

6,806

200 !

64,278

200
184
294
107
111
105
253
223
471
7-8,388
8 -3,073
-921

649
582
590
563
523
491
502
517
504
075
592
581

1
9
0,942 :
0,168 ,
5,866 :
3,397 .'
7,362 I
3,700
21 i
-353 j
359
0

302
1,453
-5,403
-5,005
-4,647
- 4 , 658
- 7 , 663
-3,513
718
-25,030
-23,984
-45,015

1932
January...
February
1
2
3
4
8
6

_

-24,029
-2,863
p—27,364 : .__

-21,419 _.._

$4,020,000 imported by Netherlands from Dutch East Indies.
$3,824,000 imported by Netherlands from British India.
$0,733,000 imported by Switzerland from Australia.
$7,293,000 imported by Switzerland from Norway.
Reported monthly production of the Mysore district plus $32,000 representing the average monthly production of the rest of India in 1930.
Figures derived from preceding columns. Net imports plus production minus increase in Government reserves in India.
7 $7,575,000 was exported from India to Netherlands.
8 $1,891,000 was exported from India to Netherlands; $2,173,000 to France.
p Preliminary.
* Beginning with September, 1931, figures for net imports from individual countries are preliminary and subject, to revision. Figures for
total net imports, gold production, and increase, in Government and private holdings are final unless otherwise, indicated.




259

FEDERAL RESERVE BULLETIN

APBIL, 1932

GOVERNMENT NOTE ISSUES AND RESERVES
[Figures arc for last rcpoit date of month]
1932

Feb.
Argentine Conversion Office (millions of '.
gold pesos):
'•
Gold
_
Notes issued »
_
_
___•
Irish Currency Commission (thousands
of pounds sterling):
Legal tender note f u n d British legal tender and bank
balances
__'.
British securities
_.'
Notes issued
Consolidated bank notes ?—
Issued
_
i
Doomed such under sec. 60 (4) of
currency act, 1927

:

Jan.

p 257
* 543

154
6, 6J7
6,771

1931

70
6,725
6,795

4,367

4,350

1.603

1,631

261
548

I

1
2

Feb. ! Jan. ; Doc. ; Feb.

Feb.

Canadian Minister of Finance (millions
of Canadian dollars):
Gold reserve against Dominion notes..
65 i
05 : 67
[
Advances to banks under finance act..I
49
37 ! 45
Dominion notes—
i
Issued
! 162
170 i
174 '•
143
Outside chartered bank holdings..!
29
30 i
28 i
28
Indian Government (millions of rupees): !
Gold standard reserve—
i
426
127
Gold
394:
114
! 7,119 6, 843
395 |
398 I
Foreign exchange
'• 7,546 6, 970
136
420
138 !
139 !
Paper currency reserve—
Gold
49 i
4,333 3,985
48 ;
46
Silver coin and bullion..
1,122 . ,158 : 1,230 i 1.227
Other assets
624 !
585 i 518 • 101
. 1,619 | 1,906
Notes issued
1, 795 i 1,792 | 1, 793 ! 1, 565

260
547'

:

Dec.

1931

1932

403
531

!

i

Includes a small quantity of subsidiary coin, amounting on Jan. 31, 1932, to 15,000,000 pesos.
The figures of consolidated bank notes issued represent daily averages for the 4 weeks ended Feb. 6 and Jan. 9, 1932, and Dec. 12 and Feb. 7,
1931. The figures for notes deemed to be consolidated bank notes are as of the close of business on these dates.
» Preliminary.

BANK FOR INTERNATIONAL SETTLEMENTS
[In thousands of fiollnrs converted from Swiss francs at par: 1 Swiss franc—$0.1930]
1932

1931
Feb. 29

Cash on hand and on current account with
banks
Demand funds at interest__
Rediscountable bills and acceptances (at
cost):
Commercial bills and bankers' acceptances
__
_
Treasury bills
Total .

1,238
15,887 ;

3,343 !
30,295 i

1,311
10, 892

84,588 !
27,510 |

78,458
19,370

82,866 •
33,708 ,

112,099 j 97,828

116,575 .

.; 50,261
42,680 |

45,057 I 189,923

i-

Total .
Other resources

Total resources




J
j 21,229 • 21,265
;.
160 j
j
161 !
I 21,389 ! 21,425 !
1,827 '•

2,011

i Feb. 29 ! Jan. 31 Feb. 28

Feb. 28

Jan. 31

"I"
139,662;
42,680 j 45,057

Time funds at interest:
Not exceeding 3 months
Between 3 and 6 months.
Total
Sundry bills and investments:
Maturing within 6 m o n t h s . . .
Between 6 months and 1 year
Over 1 year
_

1931

Liabilities

Resources

30,867
7,173
38,041
2,440

; 195,120 j 199,960 i 359,181

Short-term deposits:
Central banks for own accouLt—
Demand
Time—
N o t exceeding 3 months
Between 3 and 6 months
Total..

62,063 | 60,897
61,002
.
| 30,567 I 30, 768 ; 107,150
!_
_._;__
_.|
1.099
! 92,630 j 91,665 j 169.251

Central banks for account of others— |
11,878 ! 14,995 !
Demand.
Time4,114 !! 6,854 !
Not exceeding 3 months..
Between 3 and 6 months.
-I
TotaL.

36,761

29,041
41, 477

i 15,992 \ 21.849 j 107.278

:
Other depositors—
;
Demand
! 1,146 !j 1,144
Time—not exceeding 3 months
;
Long-term deposits:
|
;
Annuity trust account
29,677 j 29,677 .
German Government deposit
: 14,839 : 14,839 •
13,219 I
French Government guaranty fund...! 13,249

29, 770
14, 885
13, 273

Total..
Capital paid i n .

i 57,765
__; 20,941

57,765 i
20,941. |

57,928
19,855

Reserves:
Legal reserve fund
Dividend reserve fund
General reserve fund
Other liabilities

j
:
[
__:

108
211
422
5, 854

3,138

.: 195,120 j 199.960

359,181

Total liabilities

:

108
211
422
5,905

44
1, 688

260

FEDERAL RESERVE BULLETIN

APRIL, 193?

CENTRAL BANKS
[For explanation of these tables see BULLETIN for February, 1931, p p . 81-83]
i

i

i

;

Bank of England

Coin
Millions of pounds sterling:
1931—Jan. 28
Feb. 25
Mar. 25.
Apr. 29
May 27
June 24
July29_
Aug. 26
Sept. 30
Oct. 28
Nov. 25
Dec. 30
1932—Jan. 27
Feb. 24
Mar. 30

I

Resources of banking department

; Gold (in I; issue j
Cash reserves
i depart; ment) » ; -

139.5
140.8 i
143. 6 '
146.3
151.0
162.9 !
132.0
133. 3 ,
134.8 •
135.7
120.7 1
120.7
120.8
120.8 i
120.8 i

.7
.8
.9
.9
1.1
1.1
1.3
1.3
1.3
1.3
1.0
.6
.6
.6
.0

Notes

52.7
53.2
54.8
56.5
56.2
70.1
32.7
58.0
52.6
54. 6
41.3
31.6
49.9
49.4
35.3

Liabilities of banking department

Note
! circulai Discounts:
tion
Securi- !
!
and
|
1
advances

Deposits
, Bankers' j Public

346.8
347.7
348.8
349.8
354.9
352. 8
359. 4
350.3
357.2
356.0
354. 4
364.2
345.9
34'i. 4
360.5

j
j
j
!
!
|
!
'
I
!
i

55.2 !
59.1 ;
57.7 j
48.9
54.8 '
61. 6 '
55.8 !
53.6 !
62.6 i
63.5
59.8
126.4
74.3 :
67.9 :
54.6 •

Resources

Bank of France
: Foreign Domestic Security
1
exchange • bills
| loans

Millions of francs:
1931—Jan. 30
Feb. 27
Mar. 27
Apr. 24
May 29
June 26
July 31
A u g . 28Sept. 25
Oct. 30__
N o v . 27_
Dec. 30
1932—Jan. 29
Feb. 26
M a r . 2f)P

-,
__•
.-!
'
!
!

_..

;

-

_
_
_

_

-j
•

_

_

!
i
i

55,510 I
65,924 !
56,116:
55,616!
55,634
56,426 1
58,407
58,563
59,346 j
64,648
67,844 j
68,863!
71,625 i
75,059;
76,832 :

I
26,323
26,316'
26,307
26,305
26,160'
26,209
26,242
27,611
25,194
27,600
24,273
21,111
18,805
15,127;
12,032'

9,463 .
8,250!
7,084 i
6, 502 I
6,190 !
5, 576
4,56-1 :
5,820 i
5,880 '•
8,809
7,766 i
7,389 :
6,555 j
5.544 •
4, 820 i

2,866
2,801
2,858
2,795
2,806
2,779
2,860
2, 729
2,754
2,712
2,731
2,730
2,744
2, 707
2,716

;

Millions of reichsmarks:
1931—Jan. 31
F e b . 28
M a r . 31
A p r . 30
M a y 30
Juno 30
J u l y 31_
_
Aug. 31
___
Sept. 30—_
Oct. 31N o v . 30
Dec. 31_
___
1932—Jan. 30_
_
F e b . 29
Alar. 31

_
_._

;
i
!

2,244
2, 2S5
2,323
2,368 :
2,390
,421
,363
,306 •
,301
li 145
1,005
984
948
928
879

Deposits

Negotiable
securities «

Other
assets

5,199
5,199
5,0S2
5.0S2
5,082
5,082
5,065
5,065
5, 065 '
5,065 :
5,065
7, 157 '
6,899 :
6.882 ,
6,881 ;

Note
circulation

78,559
6,898
78,947
6,982
77,864
7,026
7,134 ' 77,231
78,185
7,310
76, 927
6,807
79,862
8,958
78,635
8,193
78,173
8,099
83, 639
8,428
82,543
8,647
85, 725
8, 545
84, 723
8,278
83, 189
8,329
81, 782
8,371

Govern- j
ment j

13,844
13,339
11,773
11,680
9,940
8,513
9,303
9,470
7,357
8,227
7,170
5.898
4,722
3,637
3,526

checks)

76
142
45
25
74
249
38
124

=
:
I
•

56 .
98 :
33
44
59

1,942 :
1,979
1,951 :
1,816 !
1,791
2, 579
3,273
3, 101 j
3,545
4,010
3,901
4,144
3,632
3,324
3,258

Other

Other
liabilities

11,659 I
10,963 I
12,577 |
12,062 i
12,669 I
15,187
14,736 I
17,649 !
18, 542 !
22,954 j
24,171
22,1S3 I
23. 552 i
24.899 |
24, 962 I

2,19S
2,221
2,260
2,462
2,394
2,250
2,195
2,227
2,266
2,441
2,442
1,989
1,910
1,925
1,980

Liabilities

Securities

199
166
188
157
180
300
246
356
139
131
170
172
145
149
142

18.1
18.2
18. a
17.7
17.8
17.9
18.1
18.2
18.3
17.7
17.8
18.0
18.1
18.2
18.2

Liabilities

Reichsbank
exchange

! Other
-j liabilii
ties

I
33.4 !
33.3 ;
33. 7 I
37.0 I
33.8 !
33.5
33.7
48.7
52.6 I
52. 6 !
38.1 I
40.3 !
38.2 ;
32.2
34.4 !

19.4
16.2
9.5
17.7
17.4
25.2
15.2
26.3 I
30.1 I
17.3 !
27.0 !
7.7 i
15.3 i
14. i ;
27. 2 !

Resources

Gom

Other

174
301
274
287
107
355
347
208
301
240
254
245
158
303
290

103
102
103
103
103
103
103
103
103
103 :
103 :
161
161
102
362 :

Other
assets

676
638
66S
721
936
958
972
1,010
903
980
1,065
1,098
1,100
1,044

Note I
circula- j Deposits
tion
;

4.383 i
4, 428
4,456 .
4,340 :
4,299
4,295 !
4,454 :
4.384 •
4,609 '
4,746 .
4,641
4,776
4,407
4, 268
4,231

267
325 j
387 •'
355
353
509 I
613 I
518
506 !
755 !
394 j
423 !

Other
liabilities

831
832
775
749
731
1,074
1,251
1,251
1,306
1,326
1,323
1,338
1,373
1,318
1,226

1
I n addition t h e issue d e p a r t m e n t holds G o v e r n m e n t a n d other securities a n d silver coin as cover for t h e fiduciary issue, which is fixed b y
law a t .£200.000,000. Since Aug. 1. 1931, however, an increase of £15.000,000 in t h e fiduciary issue (and securities held as cover) has been authorized
b y t h e British T r e a s u r y u n d e r section S of t h e Currency a n d Bank Notes Act, 1928; t h e m a x i m u m period for which such authorization m a y b e
granted is two years.
2
Issued b y t h e i n d e p e n d e n t office for retirement of public d e b t (caisse a u t o n o m e d ' a m o r t i s s e m e n t ) .




261

FEDERAL RESERVE BULLETIN

Al'KlI., 1932

CENTRAL BANKS—Continued
[Figures are for last report date of month]
1932

Central bank

j

1931

, Feb. I Jan. ! Dec. j

Feb.

Central bank

1932
Feb.

1931

Jan. • D e c . F e b .

National Bank of Albania (thousands
Central Bank of China—Continued.
of Albanian francs):
Deposits—Continued.
J 0,235
4,939 | 5,094
1,914
Other..
(Sold
20,780 ' 24, <J49 27. 780
_| 58,859
Other liabilities
Foreign exchange.-•".
4,475 4, 532
3,495 Bank of the Republic of Colombia
Loans and discounts
_;.
5,427 ! 7,133
4. 500
(thousands of pesos):
Other assets
15,143
12,512
11,488 ; 11,809
0,601
9,129
Gold at home
j 7,103
Note circulation
;.
7,179
17,000 !10, 399 12,030
7, 626
4, 649
Gold abroad
j 0,459
Demand deposits
'.
:
13,445
12,479 13, 441 13,147
Loans to member banks
__; 15,072 16,510 :, 18,228
Other liabilities.
_._
24,339
Commonwealth Bank of Australia
Note circulation
| 17, 587 17,617 20,578
7,708
(thousands of Australian pounds): :
Deposits
__
_
I 14, 214 14,289 • 10,809
Issue d e p a r t m e n t National bank of Czechoslovakia I
Gold coin and bullion
__ J 10,500 j 10,500 10,500 ! 15.380
(millions of Czechoslovak crowns): •
:
1,543
25,758
40, 998 I 41, 745 ; 44,234 |
1,649 , 1,619 '
Gold
! 1,040
Securities
2,143
877
Foreign balances and currency
j
940 : 1,060 |
Banking department —
123
1,024 ; 874
Loans and advances
! 1,371
Coin, bullion, and cash
1,611 i 2,316 |
Money at short call in Lon- ;
Assets of banking oflice in liqui- !!
!
!
318
17,850 :j 15,570 13,795 I 0,477 ;
294
!
290
don..
elation
290
C, 571
Loans and discounts
; 18,349 17,542 12,185 I 22,405
Note circulation
j 0, 093 6,808 • 7,679
820
28,518 ! 28,010 28, 795 23, Ih3 !
279
361
Deposits
!
Securities
384 •
Deposits
• 09,095 ' 05,082 48, 483 54,921 I Danish National Bank (millions of i
45, 332 i 40, 500 49| 392 '39,058
kroner):
'.
Bank notes in circulation
172
145
149
144 i
Austrian National Bank (millions of :
Gold.—
90
28
26
36 j
schillings):
Foreign bills, etc
_
!
77
179 : 179 , 190
214
100
173 i 172 i
Loans and discounts
_
;
Gold
340
87
!
79
j
137
102
I
321
.
325
I
347
i
Note
circulation
i
Foreign exchange of the reserve.-.
25
12
0
490
20
3S .
50
63 I
Deposits
_
|
Other foreign exchange..
114 Bank of Danzig (thousands of Danzig
877 , 884
908 |
Domestic bills
i
101
90 :
97
96 !
gulden):
Government debt
•
118
970
1,041 j 1,093 1,183
Gold
i 21,819 21,821 21,825
Note circulation
10, 594
129 ; 113
128 .
Foreign exchange of the reserve...:; 21,089 22,131 25,531
Deposits
j
83
:
14,
654
3.
024
6,310
Other foreign exchange
6,212 i
National Bank of Belgium (millions
Loans and discounts..
' 9, 702 10,220 ! 10,661 20, 313
ofbelgas):
30,196
40,841
44,012
Note circulation.._
42,195
Gold
. . . J 2,527 2, 534 2,550 , 1,410
994
Deposits.
.' 9, 040 8,572 10, 263
0
9J2
0
0
Foreign bills and balances in gold..
704 Central Bank of Ecuador (thousands !;
923
Domestic and foreign bills
j
915
970 :
ofsucres):
292
2S8
288 •
288 '
Loans to State
.
__.!
5, 051
Gold
; 5,605 5,625 5,663
3, 213
Note circulation
' 3,715 3,672 3, 054
8,628 9,904 ' 19, 394
Foreign exchange.
; 8,511
219
189
204
189
Deposits
_
;
14,001
Loans and discounts
j 14, 224 14,244 14, 227
Central Bank of Bolivia (thousands :
Note circulation
•' 17,797 17,797 19,134 21.938
of bolivianos):
:
14,102
Deposits
j 8, 514 8,514 . 8,975
2, 794
Gold
-j 3,375 3,358 3, 354
l
Foreign exchange. _
• 23, 897 24, 048 23, 264 32, 022 National Bank of Egypt (thousands \
of Kgyptian pounds):
I
Loans and discounts
\: 23. 131 22, 893 23, 207 21, 733
4.136
25, 429 25, 497 20, 026 29, 795
4,225
Gold
I.
Note circulation__
:
2,321
12.003 12,892 11,229 11, 044
2.857
Foreign exchange.
.
Deposits. _
10,100
15,797
British Government securities
Bank of Brazil (millions of milreis): ''
9.
506
7,580
Loans
and
discounts
j.
Gold
'•
14,410 10, 280
Egyptian Government securities.:.
304
317 :
373 I
279
Currency
2,
843
3,203
Other
assets
.
133
129
234
114
Correspondents abroad. _
'
19, 538 19,909
Note circulation
1,728
1,803
1,484
1,612
Loans and discounts
Deposits—
!
170 ;
170
170 :
170
Note circulation.
•
:
4,774
5,988
Government
1,879 i 1,807
1,012 !
1,657
Deposits..
:
17,888 15,805
Other
National Bank of Bulgaria (millions :
7, 919
7.
497
Other liabilities
...j
of leva):
1,402 ! Bank of Estonia (thousands of
Gold.
. . ! 1,512 • 1,512 i 1,511 i
krooni):
j
-8 :
231 j
70 ", 116 '
N e t foreign exchange in reserve..!
0, 529
Gold
j 7, 310 : 7, 307 0, 559
317 ;
087 !
333 !I 405 :
Total foreign exchange
:
Net foreign exchange
' 13,007 14.244 ; 14,933 15,972
708 .
099
C55 !
Loans and d i s c o u n t s . _
•
852 ':
23,457
22,
703
21,
102
22,430
Loans
and
discounts
:
3,004 !
2,0f-5 i 2,905 ! 3,029 J
Government obligations
:
34,487 34,437 i35,159 34, 902
Note circulation
_
3,029 .
2,072 . 2, 730 ! 2,919 •
Note circulation.-_
;
Deposits—
j
1,514 . 1,448
1.4*5 I
1, 590
Other sight liabilities..
4,378 : 5,083 ! 6,005 ! 0,085
Government
Central Bank of Chile (millions of
5,571 ! 5,206 i 4,494
5.784 •
Bankers...
pesos):
2,8*9 ; 2,856 : 3,434 I 2,057
Other
_
02
07
67 :
67 !
Gold at h o m e . . .
_
_•
Bank of Finland (millions of Finnish
98
204
108
128 •
Foreign exchange
marks):
157
85
173
222 .
Loans and discounts
30l
301
Gold...
301
331
321
319
301
Note c i r c u l a t i o n . .
Balances abroad and foreign
Deposits against which reserve .
credits
740
420
413
44
90
is h e l d . . - 250 •
Foreign bills
191
247
204 :
Central Bank of China i (thousands
099
900
972 1.085
Domestic bills
_
of Yuan dollars):
Note
circulation
1,
305
1,271
1,220
.
1
,
293
22, 420
Gold.
180
374
234
202
Demand liabilities..
37, 245
Silver
Bank of Greece (millions of drach12, 189
Due from banks abroad
mas):
30, 040
Due from domestic b a n k s
515
809
869
809 •
Gold
35,319
Loans and discounts
._
Net foicign exchange in reserve..
4,119
484 ; 772 :..1,047
2,327
Securities.
3S. 837
Total foreign exchange
037 ". 906
1,2 0 8 • 2, 040
Other assets
20, 974
Loans and discounts..
•"
82o ; 830 . 533
336
N o t e circulation.
3,150 ! 3,151 : 3,120
3,389
Government obligations
Deposits3 , 7 3 9 • 3,797 '
.
4,
003
4,417
Note circulation
SO, 902
Government
Other sight liabilities
495 :
585:
702
2, 088
13, 233
Bonk
i Items for issue and banking departments consolidated.




262

FEDERAL RESERVE BULLETIN

AruiL, 1932

CENTRAL BANKS—Continued
[Figures are for last report date of month]
1932

;f

1931

Feb.

Jan. i Dec. I Feb.

1931

1932

.1

Central bank

Central bank

Feb.

• Jan.

Dec.

Feb.
i

Central Bank of Guatemala (thousands of quetzales):
Gold coin
Balances abroad
Loans and discounts
Other assets
Note circulation-.
.;
Demand deposits. _
i
Other deposits
_
:
Other liabilities
I
National Bank of Hungary (millions
of pengos):
Gold
Foreign bills, etc.
Loans and discounts
_
Advances to treasury
Other assets
:
Note circulation
Deposits
Miscellaneous liabilities
Bank of Italy (millions of lire):
Gold at h o m e . .
Credits and balances abroad
Loans and discounts
i
Total note circulation
Public deposits
Other deposits._
Bank of Japan (millions of yen):
Gold
;
Advances and discounts
Government bonds
_
Notes issued
Total deposits
Bank of Java (millions of florins):
Gold
Foreign bills
Loans and d i s c o u n t s . .
Note circulation
..
Deposits..
_
Bank of Latvia (millions of lats):
Gold
—Foreign exchange reserve
Bills
Loans
Note circulation
Government deposits
Other deposits
_
Bank of Lithuania (millions of litas):
Gold
—
Foreign currency
Loans and discounts
Note circulation
Deposits
•
Netherlands Bank (millions of
florins):
:
Gold
Foreign bills
_
...
Loans and discounts
_
Note circulation
_
Deposits
-_
'
Bank of Norway (millions of kroner):
Gold...„
Foreign balances and bills.
Domestic credits...
Note circulation
Foreign deposits-.
Total deposits
Central Reserve Bank of Peru
(thousands of soles):
Gold
Foreign exchange
Bills
._
;
Note circulation.
Deposits
_
_
Bank of Poland (millions of zlotys) :
Gold at home
Gold abroad
Foreign exchange of the r e s e r v e Other foreign exchange
Loans and discounts
_
1

Bank of Poland—Continued.
1,151
1,152! 1,218 j 1,284
Note circulation
37
21
32 I
Current account of the treasury..
10 I
132
171
Other current accounts
„
201
204 !
Bank of Portugal (millions of
escudos):
Gold
290 :
286 i
Net foreign exchange and other
691
reserves...
0)
Discounts and advances
345
346
413
Government obligations
1,058
1,058
1,531
2,062
Note circulation
_
1,975
1,871
100
148
102 j
100
Other sight liabilities
407
279
0)
15
27 National Bank of Rumania (millions
16 !
16
390
243
441 '
of lei):
425
55
00
58 i
5, 909
5,350
58
Gold at home
5,931
5,903
10
22
27 i
3,004
13
Gold abroad
3,769 3,769 : 3,919
383
400
423 :
81
1,270
416
Foreign exchange of the reserve..
527
84
90
38
22
65
126 I
97
Other foreign exchange
6
17 i
81
39
13,000 13,246 13,857 i 8,001
66 i
72
Loans and discounts..
State debt.__
_. 3,707
3,767 3,810 I 5,617
22,542 I 22, 713 23,755 ;| 18,105
5,626 I 5,626 j 5,626 ' 5,300
Note circulation
4,200 ! 4,446
5,054
1,725
1,935 ! 2,170 4,037
Demand deposits
4,417
5, 098 South African Reserve Bank (thou5,755 . 5,311 j 5,665
13,938 i 13,971 i 14,295 15,129
sands of South African pounds): I
300
300
300 • 300
Gold
I 7,535 8,172 j 8,104 :• 7,091
1,703 i 2,049 ! 1,770 2,337
Foreign bills
!
73
53 I
41 ! 7,272
323
Domestic bills
2,492
2,949 ! 3,688 i
431 •
Note
circulation
|
7,710
8,116
I
8,799
| 8,190
431
470
83C
Deposits—
j
940 !i 1 004 1,051
743
1,277 ! 1,517
Government.
„
1, 353 1,180
110
143
218
130
4,267 | 5,933
Bank
4,180
1,094 j 1 187 1,286
1,188
4,618
167
429 ! 407
290
628
533 =
Other.._
353
59
Bank of Spain (millions of pesetas):
2,249
119
2,416
112
2,247
.
113 ! 113
Gold
2,248
534 i
29
713
5
517 :
9;
Silver
—.
526
27 j
280 I
50
113
58 :
281 ,
56 1
Balances abroad
284
56 !
2,904 i 3,084
240
2,037
3,149 i
Loans and discounts
225 . 225 i 230
4,948
•
37
4,089
27
4,949
i
Note circulation
4,923
28 i
33 I
795
1,098 i
Deposits
1,013 ; 1,083
24 Bank of Sweden (millions of kronor):
33 !
32
31
240
13
200 .
13 i
206 ;
206
Gold—.
353
84
90 '
75 I
78
85
54 .
Foreign bills, e t c . 223
71
504 .
57;
59
527
586 ,
Loans and discounts
545
47
520
I
40 !
41
526
583 •
Note circulation._
78
187
191 : 214
58
5 0 '•
177 ''
Deposits
88
94
87
Swiss National Bank (millions of
39 !
francs):
59
:
50 I
39
50
50 !
043
2,498 . 2,446 ! 2,347
Gold
27 !
72
33
29 |
399
99 !
104 I
Foreign balances and bills
112 I
102 l
103
103 I 109
01
70 ;
99 :
Loans and discounts
83 I
104
108
109
104 :
901
Note circulation
| 1,505
1,519 I 1,609 '
70 i
98
73 j
78
246
Demand deposits
j 1,170
962 i
1,128 !
Bank of the Republic of Uruguay
(thousands of pesos):
879 : 873
440
887
: 50,544 50,924 ! 50,299
Gold
84 !
227
86
84 j
Loans and discounts
_. i 101,780 •' 102,923 '. 107,998
130
108 ! 1 7 5 i
188
Other
assets
: 33, 452 ! 32,999
30,181
803
1,008
984 j: 1,023
Note circulation
. 80,395 i 81,031 ; 73,575
54
164
180
190
DepositsI 31,401 i 32,570 : 40,728
Demand.
154 •
154
140
155 ;
38,401 38,905 " 44,398
Time
15
23
16
16 i
1
Judicial and administrative..
3,098 ! 3,141 : 3,447
239
182
250 !
256
Other
liabilities
'
32, 427 ! 31, 189 32, 329
303 i 311 :
287
334
State
Bank
of
U.
S.
S.
R.
(note-issu2
2
2
ing department; thousands of
02
68 i
67
chervontsi):
Gold
03,990 63,842 63,794 48,361
2,121
Other precious metals
2,227 2,184
2,280
: 59,705 63,107
Foreign exchange
4,018
4,478
4, 590 4,647
i 484 • 7, 540
Note
circulation
203,
518
:
210,770
266,966
278,
441
I 12,914 19, 013
; 54,620 02, 716 National Bank of the Kingdom of
0, 010
Yugoslavia (millions of dinars):
| 7,706
Gold
1, 759 1,759
1, 758 ] 1,083
487
487
485
487:
Foreign exchange.__
_
200
290
425 ; 1,435
114
114
77
Loans
and
discounts
2,190
2,216
2,253 I 2,997
120 !
69
88
214
Advances to State
2,233 2,180
51
1,799 ! 4,917
119 . 125
127
Note circulation
4, 770
124
4,945
5,172 j
939
084
Other sight liabilities
_.
451
764 i 789 i 796 ;
699
417
1,982
015
0,298
1,137
0, 029
1,128
40
2,835

2,033
697
6,293
1,122
6,025
1,115
55
2,948

2,255
490
6,378
1,071
6,120
1,067
67
2,938

2, 079
1, 253
0,117
858
6,440
1,777
204
2,487

si

SI

Figures published previous to reorganization of bank July 1, 1931, are not comparable with current figures.




••

263

FEDERAL RESERVE BULLETIN

APBIL, 1932

COMMERCIAL BANKS
1931

1932

Country
Feb.
Argentina (millions of gold pesos):
Bank of the N a t i o n Gold
I
Other cash
_
j
Loans and discounts
I
Deposits
j
Other banks in Buenos A i r e s Goldi
Other cash
Loans and discounts
!
Deposits
i
Canada (millions of Canadian dol- i
lars):
•
Assets entirely in C a n a d a :
Cash in vault i
Cash in central gold reserves :
Security loans
Other current loans
:
Security loans abroad...
!
Securities
Liabilities entirely in Canada— .
Notes in circulation
!
Individual demand depos- :
its
Individual time deposits...
England (millions of pounds sterling) :
Cash in vault and at bank
Money at call and short notice.
Advances and discounts
Investments
Deposits
France (millions of francs):
Bills and national-defense bonds
Loans and advances
Demand deposits
_
Time deposits
.-.
Germany (millions of reichsmarks): ;
Bills and treasury notes..
,
Due from other banks
Miscellaneous loans
Deposits
'
Acceptances
...i
Japan (millions of yen):
Cash on hand.
Loans..
''
Deposits

! Mar. • Apr.

May

June

July

Aug.

Sept.

2
85
620
695

1
125
640
712

1
118
633
690

9
209 !
173
910 •
912
1,043 : 1,020

9
172
910
997

9 j
180 '
885
996 !

9
202
871
990

,
!
!
!
!
i

148
27
175
1,115
137
649

157
26
181
1,130
117
651

156 '
29 .•
187 ;
1,139
98 •
669

150
28
182
1,127
108
695

147
26
163
1,126
105
694

131 [

153

124

128

126

601
1,450

561
1,451

184
131
1,172
272
1,744

171
177 i
181 !
106
112 •
128
1,156 j 1,132
1,178
288
286 :
283
1,750 ; 1,708 . 1,675

1
83 ;
606 |
706 !
!

151
25
186
1,116
132
654

543 '
1,436

579
1,445

187
115
1,208
293
1,782

181
112
1,1.59
295
1, 726

596 i

j
i

176
129
1,141
274
1,134 j 1,700
292 I
1, 698 22,930
21,869

IS I

21,098 ' 21,363
11,326 11,232 I 11,156 10,762
35,456 36,106 36,971 37,861
1,656 i 1,669 ! 1,623 j 1,601
2,497
946
8,225
10,729

f

580 :
1,453 . 1,456 :
I

•
,
•
'
•

129

j
'
i
|

' 2.532 ! 2,529 ! 2,548
;
956 .
981 i
857
• 8,144 ! 8,021 j 7,818
, 10,778 ] 10, (583 ! 10,395

657 '• 630 :

600 j

582

1 i
108 i
642 !
706 i
i
I
!
"

1
99
655 :
680

1
94|
656 j
662 j

194
857
971

9
199
843
971

1 i
91 j
681
663 i

7J
190 i
852 '
966 |

Oct. j Nov. : Dec.

1
90
708
661

Jan.

1
109
696 i
652

1
107
707
641

1
111
675
639

2 ;
194 ;
830
939 ;

2
203
817

1
200
821
936

Feb,

i

2 I
186
847
947

147 I
28 i

157 I
201
159
24 i
25
27
167 !
157
159 i
159 .
1,127 | 1,137 | 1,141 I 1,102
113
110 I
90 ;
91 '
719
701 !
678 j
696

175
26
135
1,082
83 i
694

176
22
131
1,071
66

I
i
|
I

674 j

167
20
130
1,063
99
664

123 j

122

567
1,360

507 !
1,368 I

490
1,390

181
118
1,131
281
1,700

177
116
1,128
268
1, 677

170
108
.1,093
264
1,621

22, 507 20,919 ' 21,153 20,242 "19,006 17,851 I 18,441
10,342 9,898 , 9,868 i 10,076 9,863 ; 9,797 | 9,697
37,938 36,642 •36,991 : 36,137 = 36,972 ! 37,019 ! 37,023
1,370
1,332 i 1,222
1, 564 1, 539 1,545 j 1,429

18,454
9, 041
36,196
1,179

1,914
686
7,699
9,277
816

274
277 i 274 i 332 j 361
2, 217 j 2,176 : 2,184 I 2,156 2,166
2,142 2,150 . 2,161 I 2,181 2,233

1,280
546
7,337
8,167
874

126 j
568
1,461

:

!

128 \

140

131

594 •
581
1,456 ! 1,462

617
1,396

1,500 : 1,509
514 i
465
7,115 ! 6,884
8,060 ' 7,873
818
840 !

134 ; 217
2,140
2,169
2,122
2,151

197
2,146
2,102

173
113
1,131
288
1,688

1,406
373 ;
6,837 ;
7, 500
891 i

170 !

108 i
1,125 i
284 j
1,670

129 ;

1,431
345
6, 748
7,390
910

126 ;
146
140 l
124
2,171 i 2,208
2,247 i 2,283
!
2,066
2,059 j 2,051 j 2,008

1,503
320
5, 935
7,276
903
130
2,228
1,954

e
i Gold, Dominion notes, and subsidiary coin.
Corrected.
NOTE.—Banks included are as follows: Canada— chartered banks; England—nine London clearing banks; France—four commercial banks;
Germany—six Berlin banks previous to consolidation of Dresdner Bank and Darmstadter und Nationalbank in February, 1932; live Berlin banks
thereafter; Japan—Tokyo banks.




264

FEDEKAL RESERVE BULLETIN

APRIL, 1932

DISCOUNT RATES OF CENTRAL BANKS
Date effective

i Bank Bank German Bank Nether-; Swiss
NaReichslands ! tional
;ofEngof
of
Bank | Bank
; land France bank
Italy

In effect June 1,1930.
June 21
_
July 10
:.
Oct. 9
.
Jan. 3, 1931
:..
Jan. 22
_
Jan. 24
:..
May 14
May 10
_•_,
June 13
i.
July 16
.'..
July 23..__
i
July 3 0 . . . .
!
Aug. 1
!.
Aug. 12.
|_
Sept. 2
i_.
Sept. 21
i
Sept. 28.-.
j..
Sept. 29
i_.
Oct. 10
L.
Dec. 10
L.
Feb. 18, 1932
!
Mar. 9
_
._'.
Mar. 10
1
Mar. 17.
I
Mar. 21.
:.
In effect Apr. 1,1932.-|

Country
Albania
Austria
Belgium
Bolivia
Bulgaria
Chile....
Columbia
Czechoslovakia
Danzig,
I Denmark
Ecuador
_
, Estonia

2K2.

-1 !
10
!
15
10
8

j
I"

I
I

i
;-

!
!

:

!

;

'—

I Finland
i Greece.

•

'•
7 i
i

Rate
Apr.
1

!

j Hungary
i India.

3

In effect
since—

8 I July
7 : Mar.
VA- Jan.
7 I Aug.
9H! Sept.
6 I Oct.
6 Jan.

1,1931
18,1932
13, 1932
26,1930
29, 1931
25,1931
22,1932

Dec. 22,1931
Nov.
Mar.
Mar.
Feb.

24,1931
11, 1932
13,1931
1,1932

7 i Feb. 13,1932
11 I Feb. 20, 1932
7 II Jan. 20,1932
, 3
8 !! Feb. 25,1932

country
Japan
Java
Latvia
Lithuania

' 5.84
' 4MJ
j 6
I 6

Mar.
Mar.
Oct.
Apr.

12,1932
11,1930
1,1930
1,1930

Norway
Peru
Poland
Portugal

!

•: 5
I 7
~y2
7

Mar.
Sept.
Oct.
Aug.

3,1932
1, 1930
3,1930
10,1931

Rumania

\

Mar. 4, 1932
Nov. 13,1931
July 8,1931

South Africa.1
Spain
Sweden
U.S.S.R...J
Yugoslavia....

Feb. 19,1932
Mar. 22,1927
July 20,1931

Changes since Mar. 12: Austria—Mar. 18, down from 8 Lo 7 per cent;
England—Mar. 17, down from 4 to 3>6 per cent; Italy—Mar. 21, down
from 7 to 6 per cent.

MONEY RATES IN FOREIGN COUNTRIES
Germany (Berlin)

England (London)
Month

1931—February
March
April
May
June
July__
August
September
October
November
December
1932—January
February

Bankers'
acceptances,
3 months
2.56
2.60
2.58
2.24
2.09
2.58
4.28 i
4.74 !
5.68
5.75 :
5.85 '
5.52 j
4.63 !

|
j

1
|
__
:

Netherlands ((Amsterd)
dam)

Switzerland

Money for
1 month

Private
discount
rate

I
Treasury
bills, 3
months
2.37
2.56 |
2.57 I
2.21 I
2.10 i
2.44 I
4.21 I
4.57 !
5.46 i
5.55 j
5. (;0
4.94
4.08

mone

y

Bankers'
. allowance
j on deposits

2.29 I

2.20
2.17
1.87
1.64
2.05 !
3.59 !
4.04 I
4.36 ;
4.96
4.27
4.20
3.84

i Money for . Day-to-day
1 month

4.88
4.76
4.65
4.65
6.05
17.00
18.92
7.99
8.00
8.00
7.33
6. 94
6.C7

2*2-4
4
4
4
4
4 -3

i^SuSt

money

™t«

1.12
1.09
1.50
1.39
1.05
1.53
1.30
1.30
2.76
1.59
1.57
2.24
1.87

5.49
5.00
5.07
5.38
6.74
118.89
1 9.15
9.15
9.21
8.69
8.45 ;
7.8(5
7.81 ,

6.31
6. 17
5.87
5.83
7.05
18.98
19.18
9.18
9.84
9.31
7.40
7.58
7.98

1.05
1.04 !
1.61
1.55
1.07
1.40

1.22
1.21
3.07
1.72
1. 53 !
2.37
J.69

1.00
.99
1.06
1. 12
1.12
1. 55
1.98
1.80
1.90
1.77
1.75
1.68
1.52

I

Belgium
(Brussels)

France
(Paris)

Private
I discount
i
rate

Private
discount
rate

Italy
(Milan)

Austria (Vienna)

Sweden
(Stockholm) I

Hungary

Month

1931—February
March
April..
May
June
July
August._.
September
October
November
December
1932—January
February

\
:
I
I
;
i
!
\:
•
j
i

2.31
2.25
2. 25
2.20
2.13
2.15
2.41
2.44
2.44
2.44
2.44
2.91
3.31

1.77
1.57
1.47
1.28
1.06
1.20
1.50
1.50
1.80
1.90
1.75
1.75
1.75

Money
for 1
month

Private ! Private
discount , discount
rate
•
late
5. 50 ,! 3% -4
5. i>0 \

5.48 i
5. 25 ]

5. 25 !
5.25 !..
5.25 l_
5.47 '
7.50 ..
7.50 !..
7.50 L
7.50 I.
6.92 i.

-4Moi
-4
4

1
j

J
51-2-6

Prime
commercial paper

htt- "Vi
l\h7
5'/2- 7

•

4M-5
4]4-o
4 -5

5H- 8
7\i-l0H'
% -10H
734-10
7?4-10

1 Based on data for part of month, no quotations being available for remainder of month.




Day-to-day!

5 -6
5 -6
5 -6

Loa

™J UP
months

Japan (Tokyo)

I

Discounted
bills

Call
money
: overnight

5.48 '
5.29-5.48 :
5.29-5.48 :
5. 29-5.48 i
5.29-5.48 ;
4.93-5.48
4.93-5.48 i
4.93-5.48
4.93-5.66 !
5.48-6.57 !
5.84-6.57 !
5.84-6.57 '••
"I"

2.02
2.74
2.02
2. 19
2. 19
2.74
3.65
2. 56
5.48
5. 66
6.57
6. 02

265

FEDEEAL RESERVE BULLETIN

APRIL, 1932

FOREIGN EXCHANGE RATES
[Monthly averages of daily quotations. In cents per unit of foreign currency]
!

Month

(gold
peso
=96.48)

China (and Uong Kong)

^ $ a j Belgium
Brazil Bulgaria' Canada
(dollar
i S ! ( b e l ^ (milreis (lov
1U)7) i

1 3 9

=0.72)

°) 1 1 9 )

Colombia
(peso
=97.33

Chile
(peso
= 100.00) = 12,17)

I
1931—March
April..
May
June
July
August
September

78.0406
76.4029
! 70.7121
__j 70.2524
_. 09.8840
_.l 64.5722
I 59.0948
51.9900
. . . 58.S403
58.5196

_

October
November
December...

_

_

1932—January...
February..
March

58.2724
58.2204
58.2879

14.0552 : 13.9294
14.0508 i 13. 9039
14.0543 ! 13.9119
14.0457 ' 13.9242
14.0413 13.9453
14.0400 \ 13.9370
14.0388 13.9091
13.9158 13.9852 .
13.9510 I 13.9070
13.9400 ^ 13.9039

7. 8897 0. 7173 99.9789 ! 12.0032
7. 2008
.7174 99.9517 •12.0028 i
0. 0750
.7170 99.9449 12.0673 :
7.4991 | .7180 99.7201 12.0808 :
7.1937
.7183 99. 0007 12.0798 •
0.3093
.7154 99.0898 • 12.0549 '
5.9099
. 7100 90. 2470 12.0430 .
5. 0202
.7127 j 89.1025 12.0090 i
6.1704
.7138 j 88.9914 .12.0750
6.2010
.7148 82.7004 : 12.0609 |

13.9518 : 13.9140
13.9510 ! 13.9384
13.9001 13.9301

6.1579
0.1720
0.2121

!

tn

1=100.00) (

June.
July..

August
September.
October
November

December

1100.0238
; 99.9248
99.9187
99. 9157
99.9124

2.9024
2.9019
2.9022
2.9021
2. 9005

99.9703 j
_.! 99.9078 '
_. 99.9944 i
99.9913

2.9024
2.9021
2.9619
2.9625
2.9620

99.9170 ;

1932—January
February
March

99.9290 .
i 99.9022
.100.0590

!

Ger,", j England j Finland j France ; m a n y
:™;
(pound : ( m a r k k a ; (franc j (reichsmfi
480.06) j =2.52) j =3.92) i m a r k
i =23.82)

IIC(upbeaso!
(

1931—March.
April
May.

.7151 85.1301 • 12.0500
.7145 j 87.2930 : 12.0500
.7170 I 89. 4530 .
12. 0606

22. 793(5
22. 5646
22.0118
21.4575
22.4315
21.4301
22.0090
22. 8205
24.5833
23. 6010

485.8293
485.9803
486. 4039
480.4803
485.0052 |

2.51.77
2.5172
2.5172
2.5107
2.5150

3.9138 23.8072
3.9104 23.8105
3.9114 i 23.8030
3.9158 ] 23.7327
3.92 li ! 23.2782

:20.7292 485.7725 i
25.2630 453.1200 i
22.0209 388.9291
20.6700 j 371.9934 |
:
18.5875 | 337.3707 |
i
i
;
2.9627 ! 18.8801 j 343.1210
2.9627 19.0192 | 345.6316
2.9028 20.0112 303.9304

2.514S
2. 5133
2.3082
1.9839
1.C938

3.9196
3.9257
3.9383
3.9201
3.9229

:2C7458
.20.7503
20.7738
20.7795
.26. 7340

!
1.5036 ;
1.5014 \
1.6015 !

22. 7948 24.5297
22.4949 24.3312 .
21.8950 24.0131
21.4375 23.8226
22.4247 24.7295
21.3485 23.7830 !
21.9100 24.1853
22.7019 24.0705 :
24.7240 I 20.0124
23.7323 24.8704

96.5700
96. 5700
96.5700
96. 5700
96.5700
96.5700
90.5700
90.5700
90.5700
96. 5692

23.5237 : 32.0357 : 23.6900
24.4090 I 33.1449 24.3587
23.9969 j 32.8001 23. 9213

24.8390 : 95.6656
95. 2400
25.3353
95. 2400
24.0855

Greece

Italy i J a p a n
(lira i (yen
= 5.26) ! =49.85)

mS
= 1.30)

I
I
; 23.6575

23.4212
! 23.2395
! 23.6777
| 23.6192
;
!
3.9294 •, 23.6475
3.9379 ! 23.7392 i
3.9325 23.7812 :

31.5980
31. 0951
30. 2520
29.5980
31.0097
29.7255
30.0004
31.8314
34.0732
32.8054

;

(pcn
==

^ > (rupee
- ) =36.50)

17 49

1.2915 :17.4411 , 36.0805
1.2943 .17. 4308 ! 30.1028 !
1.2949 17.4370 36.1423 !
1.2951 . 17.4450 35.9980 j
1.2939 . 17.4433 35.9805

5.2383 i 49.3656
5.2360 i 49. 3001
5.2353 ! 49. 3813
5. 2348 ! 49. 3740
5. 2300 j 49. 3550

1.2936 •17.4515 i 35.9425
1.2920 17.4490 33.9117
1.2883 17.4040 28.6799
1.2879 17.4070 27.9874
1.2879 17.4580 25.3612

5.2304 I
5.169Q .
5.1645 i
5.1518 '
5.1094

49.3532
49.3351
49.2525
49.2968
43.4644

1.2877 ' 17.4500 • 25.8179
1.2875 17.4397 26.0329
1.2875 17.4353 I 27.3121

5.0-141
5.1799 ;

35.9866
34.3233

I
Mexico
(peso
= 49.85)

NetherN o r w a y ; Poland
lands
(krone J (zloty
(florin
= 26.80) : =11.22)
= 40.20)

RuPortugal mania
(escudo :
(leu
=4.42)
= 0.60)

Straits
SwitzerSpain
Sweden
Settleland
(krona
(peseta
(franc;
ments
= 26.80)
= 19.30)
= 39.30;
(dollar -')

Uruguay! Jg**
-%!42)i $ £ £
-103.42),

=17(J)

i
1931—March
April..
Mny
June
_
July
August
September.
October...
November...
December

_

1932—January
February
March

• 47.3546
47.4843
48.0200
49.0305
49.0109
.3 30.0269
:
33.4081
36.5878
: 39.1304
' 39.0080

40.0869 '
40.1391
40.1847
40.2142
40.2775
40.3182
40.2077 •
40.4250
40. UJIO
40.2;«8

20.7501
20.7530
20.7701
26.7801
20.7340
20.7328
25. 3982
22.0737
20.5103
18.4831

i
!
i
!
|

11.1931
11.1929
11. 1950
11.1990
11,1991
11.1070
11.1<»78
j 11.1955
I 11.1903
! 11.1902

4.4823 i
4. 1782
4.4918
-1.4234
4.4102
4.4210
4.4232 :
3.9271
3. 0401
3. 2302

39.3294
37.8712
; 33.6841

40.1828
40.3479
40.2799

18.6969 ! 11.1934
18.7701 i 11.1890
19. 0003 ! 11.1770

3.1042 .
3.1S30
3. 2832

0. 5947 10. 7298
. 5942 10.473(5
.5913 : 10.0001
9.6749
. 5949
.5943 : 9.3139
8.79fi4
.5930
8.9839
. 5936
.5953 ; 8.9031
.5900 " 8.0137
. 5959 8.3992

i
i
:
i
|
!
i
i

50.0015
56.0402
50.0348
50.0432
56.0193
56.0044
53.5566
45.1250
43.13S6
39.0313

8.3945 39.6C00
.5951
.5950 i 7.7071 39.7745
7. 5993 41. 3333
.5958

26.7775 '
26.7758 '
20. 8070
20.8045
20.7558
20.7487
26.0857
23.1140
20.7378
18.7098 :

19.2429 73.3617
19.2559 67.7199 ;
19.2845 01.4301 !
19.3956 58.5356 i
19.4309 54.2652 j
19.4862 40.0147
19.5096 41.9251 •
19. hOOO 31.8908 i
19.4032 45.0027 i
19.4805 44.5487 i

19.1888 :19. 5074 41,9i.ro I
19.2922 19.4901 40.1521 i
19. 8540 19. 3105 47.0700 !

1.7587
1.75S5
1. 7003
1.76S5
1.7665
1.7694
1.7653
1.7734
1.7856
1.7796
1.7784
1. 7803
1.7753

i Silver currencies—March parities: Mexican dollar, 23.51 cents; Shanghai tael, 32.41 cents; Yuan dollar, 22.99 cents; Hong Kong dollar, 23.33
cents. Figures given for parity represent gold value of unit in March, 1932, computed by multiplying silver content of unit by New York average
pricea of silver for March, 1932, which was $0.29916 per fine ounce.
Straits Settlements dollar is legally equivalent to seven-sixtieths of one English pound—March parity, 42.46. Figure given for parity represents seven-sixtieths of avorage quotation of pound in New York for March, 1932.
i Beginning with August, quotations aro for silver peso.
NOTES

Figures given in parentheses for each country represent the par of exchange of the monetary unit.
Averages are bised on noon buying rates for cable transfers in New York.
Back figures—See BULLETIN for January, 1932, 1931, 1930, 1929, and 1928.




266

FEDERAL RESERVE BULLETIN

APRIL, 1932

PRICE MOVEMENTS IN PRINCIPAL COUNTRIES
SECURITY PRICES
1 Index numbers except as otherwise specified]
Bonds
Month

United
States
(average
price)

Common stocks (1926 average=100)

Germany
England
France
(December,! (1913 aver- j (average
1921=100) ; age=100) ! price)

Number of issues.

60

1930— February...
March
April.,
May
June
July
August
September....
October
November,..
December..

96.4
97.8
97.9
97.9
98.2
98.7
99.6
100.0
99.9
99.1
97.8

110.1 I
112.7 |
112.7 |
111.4
110. 0 !
112.3 i
111.9 !
112.0 !
113.1 i
112.8 i
112.5 !

.3
95.8
95.5
95.3
95.8
95.7
96.6
96.4
95.4
94.7
94.1

1931- -January
February...
March
April
_.
May...
June
July
August
SeptemberOctober
November..
December..

99.6 !
99.4 '
100.0 I
99.6 !
99.7
99.4
99.4
98.5
95.6 j
89.4 i
89.0 I
8i.6;

112.8
109.7
111.6
111.3 j
110.8 •
111.1 j
111.2 I
107.2 |
103.5 !
104.2 :
104.8 |
102. 2 j

95.7
97.1
97.9
99.0
98.4
98.8

1932—January...
February..

81.0 j
80.3 ;

104.7 I
106. 5 I

87

165.5
172.4
181.0
170.5
152.8
149.3
147.6
148.8
127.6
116.7
109.4
84.0
84.3
85.9
87.4
86.4
83.9

109.9
109.2
111.1
108.0
101.8
103.1
98.4
101.1
95.4
94.1
89.0

110.6
109.2
112.1
111.7
106.8
100.9
94.8
1.9
87.9
84.7
80.0

205.6
205.2
208.6
198.3
187.6
188.8
182.0
182.4
169.5
162.2
149.8

77.8
79.2
73.8
67.2
75.6
74.7
68.1

i Approximate number; series originally included 208 issues,
a Computation suspended because of closing of the exchange.
Stock price series for England, France, and Germany have been converted from original bases to a 1926 base.
Back figures—See BULLETIN for February, 1932, and sources there cited.

WHOLESALE PRICES—ALL COMMODITIES
Month

United
Canada
England
France ! G e r m a n y
Italy
States
(.1926=100) i (1926=100) (1913=100) (1913 = 100) :(1913=100) (1913=100)

i

1930—F ebr uar y. _.
March
April
May
June
July...
August
September..
October....
November..
December..

91
90
90
89
87
84
84
84
83
81
80

94
92
91
90
88
86
84
82
81
80
78

128
125
124
122
121
119
118
116
113
112
109

567 j
558 j
548 i

556
552
551
541

;
j
'
;

1931—January
February...
March
April
May
June
July
August
September..
October
November.
December..

78
77
76
75
73
72
72
72
71
70
70
69

77
76
75
74
73
72
72
71
70
70
71
70

107
106
106
106
104
103
102
100
99
104
106
106

541
538
539
540
520

!
;
i
'
•

1932—January..
February.

67

69
69

106
105

» Kevised index of the Bureau of Labor Statistics (784 price series).




Japan ; Nether(Oct., i
lands
1900=100) j(1913=100)

129
126
127
126
125
125
125
123
120
120
US

408
400
396
389
382
375
379
374
364
361
350

200
196
193
189
181
177
176

342
338
339
337
332
327
324
322
319
322
320
319

15S
158
158
158
154

442

115
114
114
114
113
112
112
110
109
107
107
104

439
446

100
100

317
311

546
540 !

558
560

518
500
488
473
457
447 '

:
1
!
!
I
j
!

172
165
162 .

161

151 ,

153
152
150
147
147
151
160
101 ;

126
122
122
118
118
115
114
112
111
110
107
iO5
104
103
102
102
100
97
94
91
89
89
85
S4
83

267

FEDERAL RESERVE BULLETIN

APRIL, 1932

PRICE MOVEMENTS IN PRINCIPAL COUNTRIES—Continued
WHOLESALE PRICES—GROUPS OF COMMODITIES
[Groups are those comprised in indexes shown in preceding table]
England (1913=
100)

United States (1920=100) i

Month
; Farm : Foods
1
products '

1930-February
March
April
May
Juno
July
August
September
October
November
December

]

!

_
-

'

:
:

'
•

-

:

1931-January
February..
March
April
May
June
July
August
September
October
November
December

.._
_

J
;

_
_

-

:
....:
:
_.
:

1932- January
February.. _

98 !
95
96 !
93 j
89 j
83 I
85 |
85
83 j
79 j
75 i
73 |
70 |
71 i
70 |
07 |
65 i
65 j
64 i
61 I
59 \
59
56
53
51

Other
commodities

Franco (1913=
100)

, Indus- li Farm
Indus- AgriculFoods
trial I and food
trial
tural
i products ! products products products
i

Month

1931 j 1932

England
(July,
1914=100)

IndusInd ustrial
trial
raw and
semifinished
finished products
products

82 |

124
122 !
121 !j
119
117 |
115 ;
113 !
Ill j
109 !
107 |
105 |

503
495
481
483
488
540
550
562
562
570
570

116
110
112
111
110
115
117
114
109
112
110

115
118
118
117
115
114
111
108
108
108
105

127
126
125
124
122
119
118
116
114
113
110

155
153
152
152
151
151
149
148
147
145
143

81 I
78 j
78 ;
76 j
74 !
73 i
74;
75 ,
74 •
73;
71 !
69;

113
112
111
113
113
113
110
108 "
108
113
115;
113 .

104 I

95 i
95 |
100 j
102
102 I

580
575
581
592
566
571
541
528
508
489
482
491

107
106
107
108
109
107
105
103
101
99
99
95

102
100
99
97
96
95
97
96
94
95
94
91

108
106
106
105
103
103
103
102
100
99
99
97

142
140
139
138
137
137
136
136
135
133
132
130

65 :
63 :

114
114

101 I
101 :

490
511

92
95

90
91

92
91

125
122

103 !
103 !
102 i

ioo;

COST OF LIVING

1931

i
j

Germany
(191314=100)*

France
(July,
1914=100)

1931 ' 1932

Provisions

135 '
129 i
129 !
127
127 ;
127
126
124 i
121
121 :
116 :

RETAIL FOOD PRICES
United
States
(1913=100)

Germany (1913=100)

1932

1931

;

United
States

! (1913=100)

Month

1932 i

1931

1932

j England
i! (July,

1914=100)

;

1931 ! 1932

France I Germany
(Jan.-June,
(19131914=100) ! 14=100)«
1932

1931

1932

1931

il
January
February
March
April
May
June
July
.._
August
September

__.'
:
'
,

133
127
126
124
121
118
119
; 120
_.| 119

October...

:

November
December

j 117
__.: 114

119

109
105

138 ; 131 I 132 114
136 131 132 J15
134
131
129 j
: 130
129 :I.
129

127
130 :
128
128 j
128 j .
130 i.
132 '_

134
131
130
129
130

113 i .

January
February
March
April
Ma
lay..

130 :
126
125
123
122
i

120

i; July
August
September..
October..

November
December

'
;

:

_j
I

131 'ZIZZZ |! JuneZZIIIIIIIIIII

128
125
121
J19
116
113

•

i 116
i 114
!
!

!

150

_

146 I

J

153
I 152
150
i 147
147
! 145
147
145
145
145
146
, 148

147
__.
147
'
120 L
!
_|
|
.
i
120
'....
...
i
115
...
L_.

"".
108 j

I

125
122
138
, 137
137
138
137
135
134
133
132 !
130 !

i

* Revised index numbers of the Bureau of Labor Statistics.
2
Average of October, 1913, January, April, and July, 1914=100.
SOURCES: Wholesale prices—For original sources, see BULLETIN for March, 1931 (p. 159). Retail food prices and cost of living—United States—
Bureau of Labor Statistics, Department of Labor; England—Ministry of Labour; Germany—Statistisches Reichsamt; France—for retail food prices,
Statistique G§n6rale, and for cost of living, Commission d'6tudes relatives an cout de la vie a Paris.




268

FEDERAL RESERVE BULLETIN

APRIL, 1932

FEDERAL RESERVE STATISTICS BY DISTRICTS, ETC.
EACH FEDERAL RESERVE BANK
DISCOUNTS, BY MONTHS

DISCOUNTS, BY WEEKS

[In millions of dollars]

[In thousands of dollars]
Wednesday series (1932)
Federal reserve bank

Federal reserve bank

Mar. 2 ! Mar. 9 i Mar. 16 Mar. 23 Mar. 30
Boston..
New York
Philadelphia

Boston
New York
Philadelphia. Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis.-.
Kansas City—
Dallas
San Francisco.

_

I 37,289

Cleveland..
Richmond.
Atlanta

179.0
121.9
121.7
36.4
48.9
79.9
22.0
14.3 I
38.6
14.6
130.5

34,071 : 32,012 35,938
129,675 132,856
! 87,217 | 89,814

161,032 ! 137,476
125,736 j102,029

Chicago..
St. L o u i s . . .
Minneapolis

37,223
138,178
77,257

121,755 ! 117,580 , 103,275
38,294
30,054 ' 31,166
47,803 ' 42,646
32,463

103,708
32, 585
32, 274

84, 794
32, 076
31, 981

! 72,180 65,511 ! 54,684
i 20,045 ; 18,364 . 19,348
13,192
10,630
9,015

48,864
18,824
9,032

45,156
18, 465
9,287

Kansas C i t y Dallas
San Francisco.

39,939
15, 348
135,189

38,207 : 33,524
15,097 ! 12,955
130,314 , 115,458

31,638
10,609
119,441

32,217
10, 243
116,378

Total.—

828, 402

747,979 : 660,792

665,583

633, 255

Total..

i

I

RESERVES, DEPOSITS, NOTE CIRCULATION, AND RESERVE PERCENTAGES
[Amount in thousands of dollars]
Average of daily figures
Total deposits

Total cash reserves

Federal reserve notes in circulation i

Reserve percentages

Federal reserve bank
1932

1932

Boston
New York
Philadelphia..
Cleveland
Richmond
Atlanta.
_
Chicago.
St. Louis
Minneapolis..
Kansas City..
Dallas
San Francisco
Total...

1932

1931

March

February

122,802
844,854
121,611
148, 048
54,888
50,859
200,105
61, 012
43,143
69, 493
49, 541
148, 847

145,328 I 176,494 : 183,859
126,944
848, 019 1,042,095 ," 509,920 i 570, 725
120,2*2
149,580 " 200,172 , 204, 057
151,001
109,332 . 303,902 ! 312,482
57, 304
03,721 • 100,922 i 105,595
51,904
00,413 : 120,578 • 120,071
207,918
830,837 • 557,551 ! 570, 770
02, 090
92,822 ' 03. 210
71,714
43, 9*7
49,8 55 "' 09,201 !
08, 603
71,5-44
83,105 ;
83,055
83,130
52, 245
59,220 ; 40,559 I 41,800
154,379
230,139
180,750
240, 240

129, 553
250, 383
139,307
180,212
80, 000
130,080
159,508
77, 250
48, 205
00, 004
20, 048
101,991

3,190,831 ;3,154,910 i3,276, 754 1,975, 263 |2, 014, 3972,442,522 2,605,485 ,2,003,844

1,400,0S2

March

February

220, 929
987, 828
247,597

220, 940
228, 602
992,212 1,134,108
233,215
251,071
295, J11
322,802
108,613
] 17, 697
107,917
107, 004
600, 779
415,111
105, 053
110,623
70,948
70, 490
92, 954
103, 284
52,901
53, 486
214, 207 i 296,416

102, 540
121,241
(569, 744
109, 532
75,979
94, 437
53, 224
214, 391

March

March . March

March

1932

1932

March ! FebruMarch
ary

04.9 :
04.9 :
05.8 !
70.7 i
81.9 !
71.2|
07.0 i
61.9 !
59.1 i
56.6 j

71.1
09. 0
50.7
03.0
00.7
62.5
78.8
67.6
03. 0
60.1
50.3
54.0

83.2
87.1
86.0
85.0
81.3.
87.4
84.6
78. a
71.9
69.0
62.1
85.0

69.7

67.4

84.0

73.8 i
09.8 j

1 Includes "Federal reserve notes of other reserve b a n k s " as follows: Latest mouth $14,334,000; month ago, $14,184,000; year ago, $14,449,000.




269

FEDERAL RESERVE BULLETIN

APRIL, 1032

EACH FEDERAL RESERVE BANK—RESOURCES AND LIABILITIES, ALSO FEDERAL RESERVE
NOTE STATEMENT, MARCH 31, 1932
[In thousands of dollars]

Total

Boston

New
phia

Richmond

Cleveland

St.

1

™ " " ! Kansas

San
Fran! Cisco

Dallas

RESOURCES
Gold with Federal reserve
2,211,147 I1159,627
agents..
Gold redemption fund with
44,565
2,214
U. S. Treasury._
OVO
! 1
Gold held exclusively
against Federal reserve !
notes
12,255,712 1161,841
Gold settlement fund with
!
Federal Reserve Board
276,289 ;, 14,286
Gold and gold certificates held
!j
by banks
• 487,702,; 19,787

513,217 193,300 230,970
9,073

6, 288

73,170 100,775 554,920
1, 797

5,078

522, 890 199, 588 236, 648

2,130

:

77,120 ' 60,945

4,595 I 2,103 '

74, 967 102,905 559,515

79,223

64,080 j 33,260 ' 149, 763

495 , 2,719 j

61,440

967

5,906

66,799 ! 34,227 155, 669

136, 702

9,840

23,457

4, 047

6,255 , 42,453

5, 602 i 7, 802 = 6, 385 j4,414

321, 445

17,855

21, 770

7,108

9,254 j 28,066

12,186 i 2,495

13,182

15,046

3,575

27,979

86,366 ; 42,216
7,486 j 10,721

198,694
12, 610

Total gold reserves
Reserves other than gold

3,019,703 195,914
j 215, 461 ! 21,105

Total reserves
Nonreservc cash

Is, 235,164 i 217, 019 1,039, 617 256,147 1299,001 ; 18,677 ^124,343 .656,995 j 108,081 j 77,191 I 93,852 I 52,937 211,304
20,149 ! 3,768
4,611 I 4, 387 ; 5, 264 ! 12, 743 | 3,904 ! 2,021 ! 2, 670 I 4, 068 •
6,388
|
77, 805 !i 7,832

Bills discounted:
•
Secured by U. S. Govern- j
merit obligations
| 315,837
Other bills discounted
322,713

21,733
14,558

638,550
67,557

36,291
2,672

: 327. 744
23,399
! 84,398
5,703
: 459,490 ii 27,054
70

Total bills discounted.._.
Bills bought..
...J
U. S. Government securities:
Bonds
Treasury notes
Certificates and bills

Total U. S. Government i
:
securities
871,632
Other securities
7,846
Total bills and securities. 1,585,585
Due from foreign banks
_
6,645
Federal reserve notes of other
banks
J
15,792
Uncollected items. _
I 354,059
Bank promises.—
57,853
All other resources._.
„:
36,199
Total resources

:

984, 037 227,283 1281,875 ! 86,122 118,414 630,034 97,011 71,737
55, 580 I 28,804 ' 17,126 ]' 12,555 i 5,929 : 26,961 j 11,070 : 5,454

89, 391 30, 508 45, 857
44, 247 48,305 42, 726

6, 278
25, 619

5,995
26,222

24,300
22,968

11,047
8, 204

1,080 6, 505 :
482 '72, 661
8,242 26,095 j 10,120 45,347

133,638 i 78,813
21,538 i 3,572

88,583
3,185

31,897
3,132

32,217
4,168

47,268
10, 215

19,311
2,675

9,322 ; 32,600 i 10,602 118,008
1,356 ; 3,058 i 2, 665
9,321

109,414 i 27,998
39,158 I 6,266
216,327 ! 38,296

29, 864
7, 772
7,560
1,174
47,378 ! 10,135

5,230
1,270
6,101

53,939
9,184
43,837

11,674 15,926
7,695 j 16,989 j 17,844
2,791
2,030 : 2,345 ! 1,724 ; 5,187
13,322 i 9,784 : 13,895
8,651 ! 24,710

56,156
200

364,899 72,560 84,802
6,181 i 1,377

95,319
536

526,256 '156,322 176,570 | 54,110 48,986 164,443 I 49,773
2,362 = 727
248
946 |
21
678 j 268

377
j; 40,858
i 3,336
:
| 1,043

5,459
333
107,107 ; 29,943
14,817 j 2,651
13,941 !
983

19,081

12,601 106,960

1,013 i 976
32,023 . 26,343
7,962
3, 609
1,796
5,039

1,112
9,428
2, 489
3, 749

27,787 ! 27,746

23,935 : 27,364 = 47,741
I

38,512 59,593
13 :
195

!

40,631 . 175,070
188
463

i

2,383 j
868 |
778 952
212 •
1,329
44,428 13,618 : 6,182 ! 16,969 10,506 j 16,654
7,827 | 3,461 • 1,834 i 3,649
1,785 ! 4,433
3,411
1,575 ; 1,399 j 1,160 1,270 •
833

jo,369,102 1.366,320 1,729,708 1450,874 523,654 193,409 195,619 893,176 181,301 |127,930 179,040 jll 1,597 ' 416,474

Federal reserve notes in actual •
.
circulation....
_
2,563,486 j 173,203

575,343 256,579 296,758 | 97,225 .118,032 544, 993

Deposits:
j
ji
M e m b e r bank—reserve •.
\\
account
_
1,923,533 I 116, 581
Government
_
29, 546 ; 2,161
Foreign bank
i 30,630 ji 1,023
Other deposits
_.
28, 397 j!
41

859,500
6,695
21,555
19,345

91, 365 j 68, 572 ' 81, 429 i 38, 531 : 221, 456

117,082 144,358 i 50,298 : 47,265 230,721 57,962 ! 40,971
| 1,770 1,987 ! 2,447 1,701
5,836
416 •
743
I 1,387 1, 360 :
539 j 498 1,804
471 i
296
; 265
2,715
103 | 134
485 !
635 •
259

67, 358 i 47, 568 137,869
913 i
751 I 4,126
391
377 :
929
57 j
43
4,315

Total d e p o s i t s . . . .
Deferred availability items
Capital paid in
Surplus
All other liabilities...

2,012.106 \ 119,806 : 907,095 120,504 150,420
i 349,448 : 40,789
103,971 j 29,482 31, 991
" 155,623
11,531 = 59,190 ! 16, 251 14,275
' 259,421 ' 20,039 !
75,077 j 26,486 27,640
| 29,018
952 !
9, 032
1, 572 2,570

Total liabilities
Reserve ratio (per cent)...

5,369,102 .366,320 1,729,708 ;450,874 ,523,654 193,409 195,619 1893,176 181,301 127,930 179,040 111,597
70.1
66.9
65.5
83.2 !
71.6
69.6 i 62.5 i 60.7
I
70.7
74.1

FEDERAL RESERVE NOTE
STATEMENT

416,474
57. a

i
:

Federal reserve notes:
:
Issued to Federal reserve
••
bank by Federal reserve !
agent
j2,816,584 ; 193,581
Held by Federal reserve !
!
bank
! 253,098
20,378
In actual circulation
% 563, 486 173,203
Collateral held b y agent as :
security for notes issued to •
banks:
i
i
Gold__
12,211,147 ; 159,627
Eligible paper
' 667,000! 36,600




I 53,387 i 49,598 244,846 ! 59,484 I 42,269 j 68,719 : 48,739 I 147,239
' 24,944 \ 10, 069 43, 737 : 14,626 | 6, 283 \ 15, 904 j 10, 632 | 17,020
I 5,291 i 4,940 17,449 : 4,483 i 2,941 i 4,102
4, 024 I li; 146
! 11,483 . 10,449 38,411 i 10,025 ! 6,356 ' 8,124
7,624 ! 17,707
1,079 j 2,531 3,740 . 1,318 1 1,509 :
762
2,047 i 1,906

j

!

640, 351 268,079 .314,293 106,085 134,080 596,743 ; 96,007 70, 018 , 92,169 \ 43, 664 I 261, 514
65,008

11,500 ' 17,535 j 8,860 j 16,04S

575,343 J256,579 \296, 758

51,750 ; 4,642

•

i

i

1,446 j 10,740 ; 5,133 i 40,058

97,225 118,032 |544,993 j 91,365 ! 68,572 j 81,429 | 38,531 j 221,456

513,217 |193,300 1230.970 ' 73,170 100,775 554,920 ' 77,120
144,307 79,110 | 88,584 , 33,508 33,892 52,886 19,847

:

I

60, 945 j 64,080 \ 33, 260 i 149,763
9,193 ! 33,464 j 11,009 j 124,600

270

FEDERAL .RESERVE BULLETIN

APRIL, 1932

ALL BANKS IN THE UNITED STATES
ALL BANKS *—PRINCIPAL RESOURCES AND LIABILITIES ON CALL DATES, BY DISTRICTS
[In millions of dollars; figures for nonmember banks are for dates indicated or nearest thereto for which figures are available]
Loans and investments
Loans

Total
Federal reserve district

1931

1930

1930

Deposits, exclusive of
interbank deposits

Investments

1931

1930

1631

1930

Rediscounts and
bills payable

1930

1931

1931
j

Dec.
31

Sept.
29

6,758
19,288
4,321
4,712
2,242
1,394
7,374
1,753
1,396
1, 662
1,037
4, 270

6,754
18, 953
4,137
4,249
r
2,167
1,328
6,236
1,675
1,303
1,520
970
4,072

Dec.
31

Dec.
31

Sept.
29

Dec.
31

4,065
11,856
2,313
2,700
' 1,423
916
4,366
1,114
748
958
676
2,616

3,835
11,281
2,114
2,397
1,295
845
4,160
1,006
700
860
602
2,520

Sept. Dec. Dec. Sept. Dec.
29 , 31
31
29 i 31

Dec.
31

Sept.
29

Dec.
31

2,440
6,115
1,688
1,570
661
349
2,005
506
559
548
271
1, 362

2,690
7,097
1,824
1, 549
r
744
412
1,871
561
556
563
294
1,457

2,550
6,545
1,670
1, 374
719
398
1,875
535
520
549
293
1,453

6.312
17,894
3, 755
4,299
2,120
1,347
7,131
1, 678
1,429
1,736
1 055
4,281

6,269 5,897
17,028 16,298
3,520 3,171
3,852 3,354
1 983 :1,845
1,223 ! 1,153
6,016 5,856
1,570 1,442
1 293 j 1,214
1 549 i 4ns
928
866
3,921 3, 756

37
103
97
88
56
46
73
44
12
30
10

18, 074 '19,61.5

IS, 481

53,039

49,152 46 261

624

19
88
41
51
32
26
31
21

25
96
72
67
36
34
27
19
5
15
17
52
466

Dec.
31

ALL BANKS *

Boston
New York
Philadelphia Cleveland
Richmond ._
Atlanta
Chicago
St Louis
Minneapolis
Kansas Citv
Dallas
San Francisco

_

_

- -

Total—

6,385
4,319
17,826
13.174
3,784
2,633
3,770
3,142
2,014
1,581
1,045
1,243
6,036
5. 370
1,541
1,247
1,221
837
1,410 ! 1.114
766
895
2,907
3,973

43
114
106
90
r
60
50
71
40
12
27
26
59 j . . . . . .

28

56, 209 '53,365

50,097

:

38,135 '33,750

31,616

2,511
12,023
2, 733
3,419
1,154
989
4,809
1,154
851
1,147
822
3.246

2,432
11,515
2,740
3,203
1,137
900
4,238
1,109
821
1,064
776
3,077

2,185
10,565
2.558
2, 865
1,050
906
3,882
1,031
789
1,016
724
3,005

!
'
j

1, 750
8,300
1, 767
2,262
!
842
726
: 3, 406
:
787
495
1
:
717
601
2,218

1,543
7,165
1,619
2,012
772
635
2,869
683
456
614
532
1,973

1,390
6,609
1,521
1,807
693
593
2,632
623
441
574
480
1, 898

761
3, 724
906
1,156
312
264
1,403
366
357
430
221
1,028

889
4,350
1,121
1,191
365
325
1,369
426
365
450
244
1,104

794
3,956
1,037
1.058
358
313
1,249
407
349
442
244
1, 107

2,317
11,035
2,339
3,114
1,074
944
4, 558
1,072
863
1,158
820
3,265

2 203 1.004
9.694 !0.27fi
2,286 2,090
2,884 2.500
1,027 944
863 817
3,989 3,616
1 000 932
800
773
1 044 980
2,941 2,854

5
16
6
19

34, 860

33, 073

30,575 : 23,870

20, 874

19, 261

10, 989

12,199

11,314

32, 560

29,469 27 432

355

4,248
7 265
1, S88
1, 293
1. 088
40")
2, 50;")
599
545
515
214
1,021

4, 322
7 438
1,396
1,046
1,030
368
1,998
566
482
456
194
995

2,522
4 691
694
688
' 651
281
1,496
431
292
314
144
642

2,445
4 672
593
590
603
252
1.528
382
260
287
123
622

1, 679
2 391
722
4.14
319
86
601
140
203
117
19
331

1,801
2 748
703
358
r
378
87
502
135
190
112
50
353

1, 756
2 589
'633
316
361
85
626
128
172
107
49
340

3, 995
6 859
1 416
1,185
1,046
403
2,574
606
565
578
235
1,017

4,066 !3,934
7,334 j7,022
1,234 j 1,081

56

19,522 i 14, 264 '12,876
1

12,355

7,085

7,416

7,166

r

697

MEMBER BANKS

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas . ._
San Francisco
Total

738

686

NONMEMBEK BANKS

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas Citv .__
Dallas
San Francisco

_ _ -.
-

_-

Total
1
r

r

21, 349 '20,292

4,201
7 261
1, 226
905
961
337
2,154
510
431
394
171
969

:

2,569
• 4 874
866
880
739
•.
:
319
, 1,964
459
!
342
I
397
165
690

i

r

r

907 •

«-r>4

«01
956
361 ! 337
2 027 12, 240
570 | s i n
4<)3
441
505
428
190
ixft
980 902

20, 479 ' 19, 083 18,829

17
15
37
25
20
42

23
7
13
4
9
269

r

18
18
33
23
25
15
44 !
21
7
12
9
8

'231

1

Includes all National and State banks (including stock and mutual savings banks) and all private banks under State supervision.
Revised.
Back figures—See BULLETIN for July, 1930, and January and July, 1931; also Tables 42, 43, and 87-90, Annual Report of the Federal Keservo
Board for 1930.




271

FEDERAL RESERVE BULLETIN

APRIL, 1932

ALL BANKS IN THE UNITED STATES—Continued
ALL

1

BANKS —PRINCIPAL RESOURCES AND LIABILITIES ON DECEMBER 31 AND SEPTEMBER
29, 1931, BY STATES
[Amounts in thousands of dollars]
Loans and investments
Total

State

September!:

Loans

September'

Deposits, exclusive I of interbank de- ,

September

Total

porting

De- ! SepSeptem- cem! tember ; ber

September

New England:
429,964!,
412,876!
2.16, 91 li
226, 030j
105,965
203,934
377,319
Maine
297,719..
294, 9511
141,438
143,867
153,513
153,852 266,666
New Hampshire
221,185!
226,344":
137,513
141,
008!
83,
67285,336
212,416
Vermont
3, 93S, 9271 4,219, 371 -\ 2,489,203! 2,676,730! 1,449,724 1,542,64 J 3,647, 507
Massachusetts
271,764! 254,217
273, 630 479,909
Rhode Island
| 517,939
545, 394ij
263,692j
578,300 1,190,463
1,296,031. l,340,995|;
741,172!
762,695! 554,8591
Connecticut
Middle Atlantic:
New York
15,792,036! 16,808,546 10,095,738! 10,609,101! 5,696,2981 6,199,445 14 ,357,602
New .1 ersoy
2, 096, 306 j 2, 225, 984 ! 1,263,618: 1,339,701! 832,688!
886,283 1,986,893
4,830,616! 5,350,175 j 2,603,634; 2,873,044 2,226,982! 2, 477,131 4,021,8311
Pennsylvania
East North Central:
;
1,981,674 2,256,611 1,406,97, 1,614,828;
64.1, 783 1, 838,408
Ohio
574,699
598, 729.
654, 569
454,193
200, 376
Indiana
196,114
402,615!
599, 443
957,160 1,011,208 2,537,136
2,712,360! 2, 992,65~ 1,755, 200 i 1,981,449
Illinois
4.88, 467 1,885,049'
493, 221
M ichigan
1,882, 439! 1,624, 527i 1,389,218-. 1,136,060;
284,201
268, 705
834,807;' 520,821!
Wisconsin
789, 526 j
550, 6061
755,531;
West North Central:
Minnesota
824,971! 4-17, 607! 471,058: 325, 222
765, 901
772, 829!
353,913
547,197
160, 572
546,624
666, 298' 386,052:;
Iowa
566, 7821
99, 516
968,445
400, 573j 410,206
996,174 1,070,181 j 595, 601
Missouri
653, 975
26,007i
74,182=
82, 198 i 48, 175!
75, 8281
North Dakota
_
54,88427,314
34, 950
88,803;
97, 969 ! 53, 853 •
South Dakota
01,928.
36,041
89,137!
79, 98"
Nebraska
245, 4931
287, 555 " .165,506;
202, 987i
84,568
236,7981
104, 564
Kansas
310,514;
205, 950!
319,103
213,359
105, 744
304,847;
South Atlantic:
Delaware
68, 431!
167,019!
137,0521
99, 439
95, 755 j
67, 580
164,186'
792,506]! 399,117;
710,521
Maryland
416,417
369, 930 j 376, 089
769, 053
257, 331 !j 151,496'
244,909
District of Columbia.
158,561
97, 5911
98, 770
249, 087.
481,652] | 350, 668: 378, 524: 104, 063i
3S9, 279
Virginia
103,128
454, 731
289, 494ij 193,118'
230, 724
220, 976 i
West Virginia
60, 993
68,518
254,111:
214,614
North Carolina
62, 346
' 69, 325
240, 429' ••285,383!! 178,083' ' 216, 058;
114,041
South Carolina
38,961
74,832|
87,984;
45, 226
113,793
251,697
G corgi a
75, 838
212,444'
87,313
269, 733299,757 i 11)3,895:
183,203
111,04'
111,244
182,447;!
Florida
179, 622
68, 3781
71,400]
I
East South Central:
Kentucky
317, 574:
403, 775' 412,748!
310,700
95,174
93,075
349,53l!
Tennessee
280,910:
326, 577
67, 571
345,481'
259,006
64,571
297,065!
Alabama..
158,970]
207, 692
58, 673
218,392/
149,019
59,422;
186, 4 87 j
Mississippi
102,833'
120, 875
39,545
145, 520 •
81, 330]
42,087 j 121, 637;
West South Central:
127, 019,!
32, 9541
31,540
100, 070
75,130
101, 007i
Arkansas...
01,005
355,416
375,558!'
96, 572
99, 009 i
324,172
Louisiana
258,844 !
275, 949
288,390
309,876 j
287, 0S3
Oklahoma
121, 947i
121,285:
188,591
166, 443,
781, 289
757,122.
Texas
849, 567
593, 611,
255, 956!
520, 930'
254, 359:
Mountain:
115,854!
109,415 ;
113,932
Montana
60, 530
55,325
54,090;
55,324
63,257:"
Idaho
36, 985
32, 923!
60, 331
27, 408i
26, 272:
66, 305!
Wyoming
35,085
32, 190
50,304
15,109 :
47, 305'
15, 279:
49, 026;
127, 290 108, 548;
117,562:
Colorado..
239, 900
226, 110:
112,670
239, 026;
19, 651
17, 843!
New Mexico
32, 907
13,1071
30,950
13, 256
32, 503
31,831
28, 5791
59, 485
56, 59()i
27, 654
Arizona
61, 520;
28, 011:
97, 652
91, 708,
40, 281
Utah..
133,936;
137, 933
1.07,172
42, 228;
25, 209
25,143!
33, 885;
34, 232
8, 742i
9,023
34, 408:
Nevada.
Pacific:
230, 929'
386, 394
422, 663;
248,707 155,465!
Washington
173.956J 379,051:
Oregon...
211,137
226,547
104,225 118,064;
93, 073
122,322 206.106
California
3,115,123 3,153,158. >, 027,458 2,082, 360 1,087, 665! 1,070,792. 2,927,215
__

Number of

Investments

405,4131
271,179]
217,6871
3,911,569
512,818
1,234,111
15,000,722
2,112,770
4,488,325)

13.195
4, 04f
6,587

5,482
1,937
3, 363
57, 255 23, 233!
2, 050 j
8,735
22^544'

115
117:

ioo:

118
119
100
444
35
231

425
351
219
160,634; 2 76,104 1,001 1, 043
79, 279i 46, 921
486
531
211,154 133,135 1,320 1,397
822
46, 422
742
10,861
30,839 1,294
590
21, 522
874
9, 285

872
803
1,415
028
899

2,159,959
657, 937
2,790,622
"• 602,
'•'"" / W0811
1,
798, 218

102.134
14,901
39, 962
90,931
15, 957

800,811
686,093
1,040,231
84,540
97, 82,'
293, 55(.
316, 9S9

6,059
18,752
22,848
1,053
2, 499
10,991
10,046

4, 529
7, 903
12,006
1, 059
2,031!
6, 290
6,802

143,873
707, 434
260,194
426,543
262, 649
' 200, soy I
131,556!
281,037
182,821

1,706
16,608
5,962
17,132
12,949
19,400
6,84-1
8, 742
2, 6b C

870
17,977
2, 349
11,337
11.4261
'14,522
4, 002
7, 500
2, 24*

49
202
39
402
215
284
113
322
18'

47
201
39
423
251
'317
136
342
193

355,942!
327,180;
191,180
133,863!

8,047
20,424
9,075
7, 523

7,989i
14,758!
10,234:
12,3531

511
400
257|
222]

513
430
265
245

117,001!
338, 260^
311,075:
817, 705

0, 194!
20, 398i
9,902 !
13, 545:

7,008;
275! 312
17,845
200 206
0,325
5 271 539
18,342 1,102 1,146

119,571
09,364;
50,440|
255, 84 71
33, 520
64, 275;
10S, 852!
35,111j
•109,505
231.463 1
3,028, 732!

1, 270:
710i
1,056:
2, 385i
1,018
846
1, 224
832:.
S.M,!
3,348!
55,020:

1, 5772,141
2,978!
1, 695'
932,
1, 995:
4,664 •
l,938i
49,352

913
868
938 j 1,095
982 1,064
240
272
204
283
630
726
922
954

156
122

781

237 i

?s
ii
32;
280197
393,

162
129
81
249
50
35
93
32
301
208
404

|SO, 096, 819'53,365, 258 31, 615, 975''33, 749,886 18, 480, 844 ' 19, 015,372:46, 260, 854 '49,152,22181,159,763!'-697,193i 19, 90S;'-21,204
_
__
I __
_ ;
:_
i
i
I

1 Includes all National and State banks and all private banks under State supervision. Figures for State institutions are taken from page SI and
represent
in some cases the condition of banks as of dates other than Dec. 31, and Sept. 29, 1931.
2
Excess over figures shown on pages 272 and 273 is due chiefly to technical diilerences between reports to the board and reports to State linking
authorities.
' Revised.
Backfigures.—SeeTables 91-93, Annual Report of Federal Reserve Board, 1930.




272

FEDERAL RESERVE BULLETIN

APRIL, 1932

ALL BANKS IN THE UNITED STATES—Continued
!

NATIONAL BANKS —PRINCIPAL RESOURCES AND LIABILITIES ON DECEMBER 31 AND SEPTEMBER 29, 1931, BY STATES
[Amounts in thousands of dollars]
Loans and investments
Investments

State
Decem- i Septein- j December
I ber
! ber

December

September

Deposits, exclusive Rediscounts
of interbank de- j and bills payposits
i
able

N u m b e r of reporting banks

J
DecemVfi**
ber

Septein- Decem-jSeptem- Decem-i Septemlw\*«
V«/\M
!
Vw\*»
ber
ber
ber
ber
ber

I

I

New England:
•
60,682!
111,214
57,731
64,777
68,523
122,508' 129,205
Maine.--30,675
57,777
38,822
41,251
09,497!
72,265
31,0141
New Hampshire
28, 780
53,045
33,688
35,087
(52,468
63.950
28,863
Vermont
378,743 440.382! 1,021,044
739,395
850,901
NI assachusetts
, 1,118,138 1.291,283!
21,869
38.285
29,012
30, 948
50,881
53,389!
22,4411
Rhode Island
i
78,057
217,314|
171,687
163,486
80,274|
Connecticut
1 241.543 251,961
I
Middle Atlantic:
J
4,373.865 4,822,871 2, 747, 593 2,955,533 1,626,272; 1,867,338: 3,749,144
New York
437,796
475,032'
330,276 341,0431 721,842
New Jersey
--i 768.072. 816,075,
Pennsylvania
! 2,296,428 2,521,924j 1,281,091 1,387,860 1,015,337 1, 131,064 1,919,955:
East North Central:
389,518 434,115 210,188; 22(5,643 541,032
599, 706' 660,758
Ohio
—
178,529
190,387 110,833
289,362
113, 759 276, 857
304,146
Indiana
873,519 955,298
544,077 (500,485 329.442: 354,813 797,842.
Illinois
--838,485. 452,931:
616,475 299,153 222,01.0 153,778 835,933
Michigan
--379,982; 403,889|
249,767. 262,553
130,215! 141,336 356,945
Wisconsin
i
West North Central:
497,53'
286,640 290,062 196,217i 207,475 466,595
482,857:
Minnesota
116,946 130,984
81,9951
86,665 189,314
217,649
198,941'
Iowa
242,065 237,325 160,4321 167,370 361,115s
404,695
402,497:
Missouri
35,020
32,140
22,717!
55,805,
58,954
23,934
54.857
North Dakota
30,0(56
26,495
24,723J
50,246
55,337
25,271
51,218
South Dakota
100,219 112,717!
60,534!
172.594
59,877 150,377
160,753
Nebraska
96,94"
94,800
70,627'
71,509 160,747
165,427,
168,456
Kansas
South Atlantic:
10,872
11.029
9,934
20,603'
20,963
9, 731
16,108
Delaware.
86,710
98,344
89.120 155,109
174,442
187,464
87, 73:
Maryland
76,908
81,364
58,012 132,960
139,376
134. 519,
57, Gil!
District of Columbia.-.
68,496 231,480
280,8(58
198, 536 212,372
267,884'
69,348;
Virginia
104,584
38,748 110.3761
143,332
90,715
125.156
34,441:
West Virginia
66,189
22,320
88, 509
54,375
57. 523J
72, 73li
18,356!
North Carolina
39,271
17,430
56,701!
35,587
49,402;
16,373
51.960
South Carolina
125, 569
71,204 167.471j
19(5,773'
114,043
61,455
175.498
Georgia
44,902
84,305 130,040|
129, 207j
44,184
85,303J
129, 487j
Florida
East South Central:
122,008
128, 882
171. 2091
180,182!
49, 2011
51,300 152. 044'
Kentucky
1(51,80(5.
168, 546
49, 201
46, 773 182, 074;
211,007.
215,319!
Tennessee
102, 984:
110,449
49, 985
50, 705 133, 746'
152,969
161,154 i|
A labama
28, 534
16, 0811
17, 040j 44,531;
34, 384
51,424
41, 6J5
Mississippi
West South Central:
27,512
48, 252
52, 979
31, 675
21, 304i 43,146!
20, 740;
Arkansas
96, 2*9.
71, 32'
26, 322; 80, 891!
97, 649|
70, 84625, 443:
Louisiana
240, 383J
156, 141 101, 8981 101, 654' 237, 040|
138,485:
257, 795:
Oklahoma _ _
622, 738
412, 974!
459,055 209, 7(541 211,210 592, 520|
670, 265!
Texas
_
!
Mountain:
62, 035
34, 3291
65, 399
27, 706'
30, 585
34, 814
65, 793'
Montana
-17, 657
10, 95(5|
26, 400;
29,030
15,444:
11, 373
27, 7(55.
Idaho
:
19, 331
10, 724i
28,803
30,196i
18, ()79
10,865
29,42(5
Wyoming
94,474:: 92, 50(5
181, 032 190,801
88, 526i
9(5,327
191,195
Colorado
13, 595
10, 201
22, 826
23, 769
12,625.
10,174
23, 969
New Mexico
10, 270: 12, 270
21,191
20, 954;
8,921'
10, (-84
22, 2(5(5
Arizona
23, 294!
18, 265
40,427
39, 940,
22,162
16, (546.
35,174 :
Utah
..;
10,484:
6,334
17, 092
17, 073
10, 758j
6, 589
14,960
Nevada
.
j
Pacific:
i
115,261j
214,469
247, 859
123, 1111 132,598:
103,105
Washington
I 226, 216
100,454159,560
16(5,234
170,467
65, 807.
70, 013
100,4271
Oregon
618,818 1,837,632
1,960,613 1, 981, 354 1,321, 230: 1,362,536|
639, 383|
California
Total- _
1

1.709
1,297
792.
14,731
1,075
3,985

4,015,677 87,784
787,437i 41,897|
2,089,173 101,4001

43.807
20.011
63,252

61
509
272
774

526
289
803

26,128' 13,885
(5,634 3,736
15.251 9.327
48,203 4,595
1,755
4.135

2(58
171
382
106
138

279
178
410
113
145

604,950.
292,271
918,323
449,127,
376.150!

45!
144]

101

44
54
45
149
10
61

472,953J
211,166 :
352,287:
60.103.
54,284:
167,149:
163,702

1,638
6,048
9,973
681
1,565
8,304
4,065

1,007
2,018,
4,114'
453
1,156
3,937
2,249

239.
188
109
8679
158
232

244
202
11(5
91
84
164
233

17,339:
162.343
143,646,
256,148
127,O:)8
75,594
54,0<>8
193.370
128,142

890
2.136
4,65^
8,968
7,456
6,851
2,351
2,54(5
1,143

308
2,511
1,750
5,568
5,647
6,864
1,018
2,380
962

16
69,
12
144
87
44
24
65
50

16
71
12
150
102
55
30
67
51

158,455;
187,993
137,176
47, 8971

3,891
14,518
5, 688
1, 856

3,833
9, 957
(5,052
2,515

119
84
84
26'

121
90
88
28

47, 318
79, 934
257. 637,
641,859,

1, 869
4,288
8, 625!
10, 248

2, 064
4,028
4,135;
13,102

51
29
250
508.

54
29
257
528

68, 458'
30,449:
30,050
204,422:
24,591
22,48234, 394'
15,446

646
375
461
1, 476
678
345
14
832

651
1,079:
2,178!
1, 101:
258!
214i

55
35
25
105
26
11
1(5
10

5(5
38
25
112
25
12
17
10

232,327
171,816
1,884.871

2,776
2,611
46,768!

2, 52(5!
1,014
42, 894

92
84
181

8(5
185

19, 093, 615;20,121, 969 11, 904, 779 12,4(55, 556 7,18S, 83(5 7, 656, 413 17, 271,098 18, 12(5, 160 555, 3(55: 324,198

6, 368

6, 653

Member banks only, i. e., exclusive of national banks in Alaska and Hawaii.




§1

4.355:
3.405i
2,527
26,025
2,2(55;
7,974

122,019
62,290
56,445
1,168,794
41.318
225,189'

273

FEDERAL RESERVE BULLETIN

APRIL, 1932

ALL BANKS IN THE UNITED STATES—Continued
STATE BANKS l- -PRINCIPAL RESOURCES AND LIABILITIES ON DECEMBER 31, AND SEPTEMBER
29, 1931, BY STATES
[Amounts in thousands of dollars]
Loans and investments

Total

State

Loans

Investments

J Deposits, exclusive of: Rediscounts and'Number of rc! interbank deposits '. bills payable .porting banks
!
!
!

December1 September December September December ! Scptember December September.

j

Now England:
152,134;
300, 759!'
Maine
290, 368!|
102,616!
New Hampshire-. . . .
225,454 :
225,4541
103,825}
Vermont
102,394
158, 717|
Massachusetts
2, 820.789i 2,928, OSS; : ., 749,808!
234,
680'
Rhode Island
j 4(i7,058
492,005 :
577,086;
Connecticut... _
j 1, 054, -188' 1,089,034:1
Middle Atlantic:
j
New York
ill, 418,171 11,985, 675! ', 348,145'
j
825,822
New Jersey
I 1, 328,234 1,409,909.;
Pennsylvania
j 2, 534, 188" 2,828,251:j ., 322, 543
TCast North Central:
!
381,908 1,595,853.! 1, 017,457
Ohio
350, 423 j 224,080.
309, 367'
Indiana
838.811 2,037,359,: 1, 211,123
Illinois
772, 743 •
Michigan
, 1, 013,954. 1,171,590
409, 544
271, 054!
430,918.;
Wisconsin
...•
West North Central:
|
327,434 •'
100,907!
289,972
Mi anesota
j
448,049. |
347, 083
209.1001
Iowa
_
i
!
605,480 |
353, 530:
593. 077
Missouri
23.244 ;i
10,035'
19, 325:
North Dakota
!
42,032!!
27,358 j
37. 5*5,
South Dakota
i
114,901'!
65.287!
84.740
Nebraska.
J,
150,647;'
111,150'
145,087,
Kansas
]
South Atlantic:
84.883 !
143, 583.
1-16,056;!
Delaware
__•
312,407:
594,01.1
005,042 !
Maryland..
_.|
74, 588i
117,955:
114,5CS"
District of Columbia.:
152,1321
180. 8 47 > 200, 784
Virginia.
-j
14(5,102 ;
102.403j
128,955,
West Virginia
'
123', 70S,
107, 098' ' 190.874 i
North Carolina
j
39.245!
01.833
70, 509:,
South Carolina
;
:
102,984
79, 852!
94,235
(} eorjTia
j
24,194j
53,240 !
50,135;
Florida
I
Kasl South Central*
\
188,092i
232. 500'
Kentucky
_... . . | 1232, 506'
97, 200!
115, 570!
130. 102 !
Tennessee
'
51.7231
57. 238
46. 035,
Alabama
I
70.
200
94,
090
:
52. 796!
Mississippi
!
"West South Central:
58,418
74.010!
47. m sj
Arkansas
277,909'.
187.998!
259, 127:
Louisiana
27. 95S
52, OS I :
•IS, 007!
Oklahoma
j
!
113,950
15S, 551:
179, 302:
Texas..
Mountain:
!
27,019;
50, 455-'|
47, 380'
Montana
17.479!
34.227!:
33,931:
Idaho
. . ...;
11, 117|
18,502
Wyoming
... .
i
29, 030 i
45. 078^
Colorado
.!
49, 159j!
5.218
8.121
9. 138
New Mexico.
J9.05S
35, 399
38,531
Arizona
...:
09. 540
93. 509:
97. 993
Utah
14,385
10,793
17,159
Nevada
...
Pacific:
107,818
171.804
100. 178;
Washington
•
27, 200 i
14, 903!
56, 0S0
Oregon
.
'.
700. 22SJ
California
! 1 154,510 1,171,804
Total. .

157,507
138.234
102,616
122,838.
105,921
54,892
1. 825,829 1,070,981
240,810
232,378
591,008
470,802

143. 252,
206,105
122,838!
208, 889
50,473 :
159,371
1,102,259' 2,020,403
251,1891
441,024
498,026'
973,149

S. 840
040i
4,060
31,230!
315
14, 570;

3, 773!
640'
2, 5711
8,502
975|
4, 750

72
65
55
281
2;
158

74
65
55
295
25
170

7, 053, 508! 4,070,020
801,009
502,412
1,-185,184' 1,211,045

4,332, 107 10, 008,458 10,985,045 72,850i
515,210 1,205,051: 1,325,333 37,382
1,343,067; 2,101,870 2,399,150 109,754

20,297
20,910
09,883

492'
2141
546!

517
242
594

32, 537
7,125
21,512
10,927
7,530

5541
571!
912i
484!
730'

593
025
1,005
515
754

283, 3941
208, 889i
161,242 ;
2,742,775|
471, 500
1,008,922

1,555,009
305. 666
1. 878', 299
1, 152.954
422, 008

76,00G1
8,207;
24,711'
42,728
11.822

333.858
474. 927
087.944
24,43:
43. 541
126.401
- 153,287

4.421
12,704
12.875
372
934.
2, 687"
5,981

3,522
5.885
7, 81,2
006
875
2, 353
4, 553

029'
750,
873!
100
185
472
090

669
893
948
181
199

120, 534
515.091
11.0. 54SI
170.395
135. 551
185,275
77. 458
87. 6654,079

S101
14,472
1.305
8. 104
5,493
12, 549
4,487:
0,196:
1, 537

502
15, 400
599
5, 769
5, 779
r, 058
3, 644
5,180
1, 280

33'
133
27.
258'
128
240
S9
2571

31
130
27
273
149
r 262
100
275
142

197.48;
'• 139. is;
< 51,004
85. 90t

4,150
4,80!
4, 1*2
9, 838

392
340
177

10,800
71, 129
20.019
44, 595

] 1.050
73. 287
19.631
44, 740:

57,801
243.281
50. 0431
164, 002!

70, 580
258, 320
53. 438
175,840

4,150
5, 906.
3. 387
f>. 007!
i
4. 325
22,110
1,277:
3, 297;

392

23, 104

43, 874;
197.487
17, 79S 3 ] i4 t 9()i !
8,717
3 52.741
25. 047
77, 100

5,001
13.817
2, 190
5, 240

224
171
277
594

258
.177
2*2
018

29, 945i
19.32h'
15,75!;
32.810i
6, 050;
21, 561!
74, 35#
14, 725j

19,701:
10, 452:
4, 3S5
10,012
2, 906
J5,741
23, 903
2, 408;

20,510
1 4, 899
t, 411
10, 343
3, 082
J (j. 970
23, 035;
2, 434

48,139!
a 3S, 000.
19,000
47,8311
8.534!
39, 254'
71,99>v
19, 50S

51,110
3 3S, 915
20, 390
51,425
8, 935
41.793
74, 45$
19, 6O.r

024!
335.
595|
909'
340|
5011

879
290
1,002
800
591
* 674.
1.7S1

101
87
53
132
24
21
72
22

100
91
50
137
25
23
70
22

ii6, IOU!
34,212;
719, S30!

52, 300!
17, 037'
448, 282

58,095
104.582:
21,80S
40,540
451.974 l,0S9.5S3

177,178
59,04
1,143,801

2,735;
737!
8,252|

2, 13S
924.
0,458

191
113
212

200
J22
219

r

14, 041

1,180,713
203,800
1,380,9011
830,9071
283, 053;

304, oil'
85,281
027.718
271,211
138, 490

415,140 1,297,376'
80, 617
322. 580
656. 395 1,739,294
334,089 1,049,110
142, 805
398, 580

180,9901
435, 798,
410, 050
19,304|
31,802
90. 270'
110,412:

129,005
78,577
240,141
3, 290
10, 227
19,453
33,937,

140.138
299, 300
12.851 3 357.883
248, 830 " 007,330
3, 380
20,023
10. 770
38,891
24, 691
80.421
34,235 3 144,100

88.410J
31.8,073|
77,197!
100,152|
116,3()2j
•" 149,869!
4S,713j
80,875:
20, 498

58, 700
232,204
39.980
34,715
20. 552
43,990
22,58814, 383
25,941

57, 040'
286,969.
40, 758
34.632
29.770
' 47,005
790:
10,109.
20.742

188,092
112,304!
48. 5211
08, 419,

43. 874
18.370

02, 390;
201,022!
32, 450:
134.5501

i

120, P44
555,412
111,949
157, 799:
120,348
157,09 V
64, 039'
84,225
53, 103

:i
a

r

2

no
73
]i 90

J31. 003, 204!>"33, 243. 289 ! 19, 711,190j-21. 281, 330; 11, 292, 008 ' 11, 958, 959 28, 989, 756>31, 020. 008 001, 398/300, 995 13, 6O1
I
!
•
:i
'
I
i
:
.
!

1 Includes all S t a t e b a n k s (including siock a n d m u t u a l savings banks.) a n d all p r i v a t e b a n k s u n i e r S t a t e supervision.
nearest, t h e r e t o for which figures are available.
2
Includes b o n d s borrowed.
3
Includes d u e to b a n k s .
4
Includes miscellaneous liabilities.
r Revised.

721

Figures relate to d a t e s

N O T E . — A l l figures in t h e D e c e m b e r c o l u m n s are as of Dec. 31, except as follows: M a i n e , D e c . 20; N e w H a m p s h i r e , J u n e 30; M a s s a c h u s e t t s ,
savings b a n k s , Oct. 31; K e n t u c k y , J u n e 30; O k l a h o m a , Dec. 20; Colorado, Dec. 5. All figures in t h e S e p t e m b e r c o l u m n s are as of Sept. 29, except
as follows: M a i n e , Sept. 20; N e w H a m p s h i r e , J u n e 30; M a s s a c h u s e t t s , savings b a n k s , Oct. 31; Rhode Island, savings b a n k s , J u n e 30; C o n n e c t i c u t ,
savings bunks, J u n e 30; N e w York, S t a t e b a n k s , Sept. 30, savings b a n k s , J u n e 30; I n d i a n a , J u n e 30; Iowa, J u n e 30; Missouri, Sent. 18; N e b r a s k a ,
.June 30; Kansas, Oct. 10; M a r y l a n d , S t a t e h a n k s , N o v . 14, savings b a n k s , J u n e 30; N'ortn Carolina, J u n e 30, K e n t u c k y . J u n e 30; Tennessee. M a y
12; Alabama, N o v . 10; Louisiana, Sept. 2S; '.'olorado, J u n e 27; l.'isih, Sepi. 30.




274

FEDERAL RESERVE BULLETIN

APRIL, 1932

ALL MEMBER BANKS IN EACH DISTRICT
RESERVES HELD, EXCESS RESERVES, AND BORROWINGS AT FEDERAL RESERVE BANKS
[In millions of dollars]
Averages of daily figures
I Borrowings at Federal reserve
'
banks

Iteserves held
Federal reserve district

Total

!

Excess

!
I

1932

Jan.

Feb.

:

Feb.

Feb.
142. 0
1,005.1
141.3
192.7

_: 1,907.5
1,907.5 . 1, 979.1

2,370. 3

119.6 j
811.5 '
118.4 !
141.0 :
51.8 •
47.6 i
257.7
57. 5 i
41.4
68.1
49. 2
143. 6

1931

1932

120.2
850.8
121.9
145.4
52.2
48.8
209.0
60.0
42.9
71.0
48.9
130.1

Boston
New York
Philadelphia...
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis. _.
Kansas City....
Dallas
San Francisco..
Total

1931

Jan.

1.4
1.1
1.3
2.3

(JO. 0
58.8
332.9
09.6
47.5
82.2
57.7
179. 4

8.9 .
2.4 '
1.9
4.7
3.8

1.6;
43. 8

Feb.

Feb.

5.5
10.0
1.5
2.2
.9
2.1
9.8
3.0
2.3
5.4
3.5
-11.4

1.0

12.9

2.0

18.7 i
2.9 j
3.5 ;
1.3 :
3.3 :
0. 6 .
4.3 ;:
2.1
4.5
2 3i

5. 0 !
50.6 |

35.4

1932

1931

;
|

Feb.

Jan.

39.9
178.8 j
121.9 !
121.7 !
30.4
45.0 :
79.8
22.0 '

47.0
188.2
119.2
123.8
43.1
45. 0
84.6
24.5

35.4 i
14.6 !
128.5 ;

30.0
15.3
85.3

47.8
24.2
23.1
18.3
21.6
20.5
9.4
4.0
13.6
6.2
16.3

836.2 !

816.6

215.8

12.2 •

9.5

]0. 7

NET DEMAND AND TIME DEPOSITS OF BANKS IN LARGER AND SMALLER CENTERS
[Tn millions of dollars]
Averages of daily figures
Member banks in larger centers (places over 15,000)
Federal reserve district

Feb.
Boston
New York
Philadelphia
Cleveland

_

»

Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco..
Total




_.

_.

1,018
6,179
800
998
350
343
1,773
405
213
429
316

Feb.

929

1,188
7,123
970
1,342
390
413
2,200
403
2 40
511
376
1,119

13,198 ! 13,818

16,350

990
5,818
836
908
345
331
1,693
389
206
414
314
893

1932

1931

Jan.

Net demand

Time

Net demand
1932

Member banks in smaller centers (places under 15,000)

Feb.

Jan.
;

, . OO
Oil

1931
Feb.

Feb.

Time
1931

Jan.
OD
OO

Feb.

1931

1932

Feb.

Jan.

Feb.

847
2,010
738
1,329
330
304
1,774
355
214
234
190
1,742

85
220
153
148
80
67
162
91
116
191
155
110

220
157
148
87
70
109
94
121
198
152
118

100
274
187
193
113
90
228
114
143
246
200
151

140
500
409
270
166
70
266
100
211
124
33
120

147

!
i
!
;
j
!

712
1,937
fill
1.O3R
295
90R
1,338
316
211
219
164
1,549

273
170
72
277
102
215
125
33
122

165
591
403
336
204
84
368
120
245
142
40
144

8,510 !

8,087

10,078

1,591

1,628

2,039

2,416

2,458

2,901

7J1
1,892
004
1 024
291
291
1,304
308
207
2J7
103
1,498

!

275

FEDERAL RESERVE BULLETIN

APRIL, 1932

WEEKLY REPORTING MEMBER BANKS IN LEADING CITIES
PRINCIPAL RESOURCES AND LIABILITIES, BY DISTRICTS AND FOR N. Y. CITY AND CHICAGO
[In millions of dollars]

I
• Total

!
Loans and investments:
Mar. 2
Mar. 9

i

F e d e ral R e s erve DLstrict

New PhilaCleve- Rich- AtBoston York
delland mond lanta
phia

19 523 ' 1,297
19,305 i 1,276

.

M a r . 16
M a r . 23
M a r . 30

19 588 '• 1,272
19 403
1,271
19,354 i 1,271

Chicago

C ty

MinSt.
Louis neapolis

KanVrZ ; New
.
sas Dallas Frany
City
Cisco ! Y o r K

Chicago

7, 638
7,515
7,704
7,577
7, 629

1,161
1,145
1,158
1,153
1, 130

1,979
1,973
1,974
1,976
1,963

599
601
608
610
612

520
517
529
525
5L.i

2,633
2,593
2,624
2,599
2, .545

570
576
583
580
576

345
345
345
342
341

572
569
570
567
566

416
412
421
417
415

1,793 ", 6,540
1,783 i 6,421
1,800
6,617
1,786 : 6,486
1,777 ; 6,541

1,468
1,440
1,480
1,460
1,410

Loans:
Mar.
Mar.
Mar.
Mar.
Mar.

2 .
9
16
23
30

On securitiesMar. 2_
Mar. 9
Mar. 16
Mar. 23
Mar. 30. .
All o t h e r Mar. 2
Mar. 9 .
Mar. 16
Mar. 23
Mar. 30
Investments:
Mar. 2___ .
Mar. 9
Mar. 16 .
Mar. 23
Mar. 30

12 588 •'
12,436
12 388 '
' 12 254 '
12,'211 i

860
849
842
841
838

4,961
4,863
4, 829
4,728
4, 757

703
701
701
699
694

1,244
1, 23S
1,228
1, 226
1,220

365
367
365
369
372

347
344
345
345
343

1,875
1,844
1, 855
1,840
1,796

363
371
372
368
305

216
216
208
205
204

300
303
302
302
301

270
269
267
265
262

1, 078 4, 269
1,071 i 4,174
1,074 i 4,148
1,066 4,048
1,059 4,074

1,009
990
1,014
1,002
960

5 440
5 426
= 5 413 :
' 5 337
5 3i)8

322
32()
330
325
321

2,404
2, 395
2, 357
2, 300
2, 337

357
356
354
355

557
556
556
557
5.15

147
147
147
150
154

103
107
107
107
106

875
865
885
877
840

145
152
152
149
146

58
59
61
60
60

87
87
87
87
88

80
80
79
77
77

300 ' 2,109
296 2,097
298 2,000
293 , 2,009
289 2,0-43

577
571
597
592
554

. 7,148
7, 010
6,975 '
0, 917
0,883

538
523
512
510
";lt

2, 557
2, 468
2,472
2, 428
2, 420

687
682
672
669
6f)5

218
220
218
219
218

239
237
238
238
237

1,000
979
970
063
<J5o

218
219
220
219
219

158
157
147
145
114

219
216
215
215
213

190
189
183
188
1*5

778 ' 2, lfiO
775 2,077
776 2,082
773 2,039
770 ! 2,031

432
419
417
410
406

437
427
430
430
433

2, 677
2, 652
2, S75
2.819
2. S72

458
444
457
4,v4
•M2

735
735
74!)
750
743

234
231
243
241
240

173
173
1.34
130
180

758
749
769
759
749

207
205
211
212
211

129
129
137
137
137

266
266
268
265
265

146
113
l.r)4
152
153

715
712
726
720
7iS •

2,271
2,247
2.4fi9
2,438
2,467

459
450
466
458
450

3. 704
4,016 .
3,951
3,920 :

225
222
224
223
226

1,591
1, 582
1.790
1, 717
1,752

184
172
185
182
171

331
385
399
402
393

115
115
122
120
117

88
83
99
95
95

406
400
418
411
398

88
86
91
92
91

54
54
61
61
61

13S
138
139
138
137

86
83
95
91
91

3S3 : 1,445
379 : 1,437
393 , 1,643
3S9 1,601
388 : 1,610

245
239
254
248
237

3,193
3,165
3,184 \
3,198 !
3, 223 ;

212
205
203
207
207

1, 0S6
1,070
1,085
1, 102
1, 120

274
272
272
272
271

351
350
347
348
350

119
119
121
121
123

85
85
85
85
85

352
349
351
348
351

119
119
120
120
120

75
75
76
76
76

128
128
129
127
128

60
60
59
61
62

332
333
333
331
330 •

826
810
S26
837
857

214
211
212
210
213

78
80
83
84
73

693
692
698
703
736

71
70
70
69
69

107
106
107
107
107

35
34
37
33
34

32
31
30

.198
218
200
201
196

39
40
41
39
38

22
22
23
21
22

42
43
47
43
43

28
28
29
29
29

86
84 ,
87 :
85
83 :

639
643
648
659
689

137
155
136
140
133

12
12
12
13
13

27
26
27
28

14
13
13
14
13

g
7
10

34
34
32
32
33

6
6
6
6

11
12
12
12
13

6
7

7

5
5
5
5
5

6
7

18
18
17
17
18

40
41
38
40
43

14
15
14
14
14

_

_

6,935
6, 869
7,200
7,149
7.113

3, 742 .

Mar. 9
M a r . 16
M a r . 23
Afar 30
All o t h e r Mar. 2
Mar. 9
M a r . 16 . .
Alar. 23
M a r . 30

Reserves with Federal reserve
bank:
Mar. 2

Mar.
Mar.
Mar.
Mar.

9
16
23
30

Time deposits:
Alar. 2
Mar
Mar.
Mar
Mar

9
16
23
30

Government depositsAlar 2
Mar 9

1,431

:

• 1,448
1,452 :
1,446
1,459 •
____•
:
•

Net demand deposits:
Mar. 2

206
211
202
210
215

;
.11,003
!
.

10,970
10,992
! 10,843
10,941 •,

|

:

5,700

• 5,714
5,687 :
i 5,675
.- 5,680 .
:

'

225 :
153

M a r . 16

547 •

Mar 23
Mar. 30.

485
452




346

315
347
311
312

:

United States Government
securities —
Mar. 2
.

Mar. »
M a r . 16
M a r . 23
M a r . 30
._
C a s h in v a u l t :
Mar. 2.._
Mar. 9. . .
M i r . 16
M i r . 23
Mar. 30

3">2

15
15
15
15
14

52
54
50
53
5C>

29

.

;
:
'
:

724
724
699
695
088

5,200
5,167
5, 199
5,131
5,286

636
635
633
622
624

839
837
837
840
847

291
293
291
286
284

241
242
237
236
233

1,404
1,410
1,406
1,376
1,329

303
315
319
313
310

178
181
178
174
173

362
358
362
358
356

244
246
246
242
244

576
562
585
570
567

j 4, 727
4,701
; 4,739
! 4,666
i 4,814

950
959
947
925
878

421
420
420
419
419

1,200
1,211
1,207
1,202
1, 208

261
265
264
265
267

841
838
833
831
831

223
223
223
223
224

198
200
199
198
197

999
993
988
990
986

208
208
208
207
208

151
150
149
149
150

182
183
185
184
184

129
129
128
129
129

887
894
883
878
877

i
i
1
'

744
756
751
753
758

391
385
384
384
383

25
17
46
39
36

144
98
265
225
203

16
11
45
41

12
8
34
33
31

6
4
31
30
29

2
2
32
31
31

1
7
6
6

1
1
6
5
5

1

24
23
22

6
6
6

6
4
22
19
IS

6
4
29
27
27

'.
:
!
:
.
I

140
95
253
214
193

2
1
25
24
24

38

276

FEDERAL RESERVE BULLETIN

APRIL,

1932

PRINCIPAL RESOURCES AND LIABILITIES, BY DISTRICTS AND FOR N. Y. CITY AND CHICAGOContinucd
[Tn m i l l i o n s of dollars]
Federal K e s c r v c D i s t r i c t

I

Total

New I 1 * " " - -Clave. K i c h - i A t Boston! 4;
York

I Chi-

!

City
I Min- : Kan-

St.

mond | lanta \ cago j Louis ; n *f.P- •

Due from banks:
Mar. 2
.
Mar. 9
Mar. 16
.
Mar. 23._
Mar. 30
Due to banks:
Mar. 2
Mar. 9
Mar. 16
Mar. 23
Mar. 30..
Borrowings from Federal reserve bunks:
Mar.
Mar.
Mar.
Mar.
Mar.

New
Dallas Fran- York
i cisco

^

Chicago

j
912
872
972
917
949

52
44
86
63
69

129
106
116
104
109

!
!
i
:
!

53 !
51 I

65
65
69
64
63

G3 •

(50 i
63 :
60 ;
66 i

5 4 :•

54 j

170 I

SI i

158!
173
177 !
208

80
82

342
312
359 I
348 I
357

5o :
53 |
55 |

54 !
47 !

48 !
47 I

96 |

Si

106 !
98 i

9 4 ••

65

96:

42:

2,386
2,340
2,444
2,376
2,400

2
9
16 .
23
30

120 ! 932
116 j 890
120 i 863
111 ! 940
1.12 j 957

474
397
328
334
305

145
140
143
135
143

181
180
184
182
186

!
j
!
;
:

82 :
80 j
80 j

80 !
78 :

7 9 !•

77

78 1

i
27 1

1
20 i

70:
47
40 !
47:
48 :

17
13
14

22 !
14 1
14 |

14 !

14

90
90 '
86 ;
82 i

37 I
33 |

79 !
81 i
80
81 ;

79 I

4!
l !
1 ;

3 i
2 :

24 -1
20 I
19 i

138
134
134
128
125

58
60
62
60
60

88 •
!

4
4
3

141 :
145 i
149
148 :
144 !

6
117
5
111 .
3
1 102
1
99

:

96
77
85
73
70

104
95
106
112
142

876
836
909
885
902

239
242
256
252
260

15 !
!

1
2

i

2

!
!

2
2

RATES CHARGED CUSTOMERS BY BANKS IN PRINCIPAL CITIES OF EACH DISTRICT
Loans secured by prime
stock exchange collateral

Prime commercial paper
Federal reserve
b a n k or branch
City

i

1932

1931

1932

Febru- I

!

Man* i ™ i Mairch
Boston
New York.
Buffalo

'

4 -5 ! 4 - 5
_= I

Philadelphia
Cleveland

Cincinnati-..
Pittsburgh
Richmond.
Baltimore...
Charlotte
Atlanta

ary

|

i\
i

5

5
5

5 -*
5 -{>
i 5} 2-6
5-6
5 -5>2i
5- 6 i 5- G
8 i 5 --8
6 :

o
5

-by.
-6

G
-G

6
-6
)2-6

Minneapolis

Helena
Kansas City
|
!
Denver
Oklahoma City"
i
Omaha
_'_ I
Dallas
i
"
El Paso
.._ "
Houston
...._..
San Antonio
'_
San Francisco
Los Angeles._
Portland...
Bait Lake City
i
Seattle....
"
I
Spokane.
j

5 -()

5 -f>
-8

1
G
G

G
0
-4
8

4 -4V.
6 -8'
43/2-G
4 -6
6
5 --G
5 -6
7 -8

^2

|

6
5 -6
7 -S

5 -G
(J - 8

5 -6
8

'' ' 6
f 8

!

G -6H
G |
G I
G i

4 -G
7 -8
53-2-6
G
4H-5
5H-G
6 -6
6

6

6 -7
7 -8
5H-7
5 -6
G -6V
G -6J(i
GH-7
63 2-7

6 -63^1
7 -8
5 -7
5 -G
5 -7
G -6H
(}

GH-7
63^-7

5

February

-6

5 -G

5

41*
6
-6 ;

43,
G
5 -53

G ;

6
G -7
6

0
G

G

/4

5

- 8

-0

53i-*

•
:

G -8 .
G -G3-2
0
8 ;

Fcbru-

4 -5
6
5 -6

Wi-h
5H-G
4 -5
5 -6
5 -0

6

G

/2

6

G
,- -G .
4 -4>2
61 - 8 •
6 '2"8
(5 -8

53/2-6

53 2-6

5H-6

j

G -8
5 -6
G -8
G-8
G
5 -G
8
5 -53<
6 -8

1J

5 -is '

I 1931

March

5

2

—o]/2

53/2-6
6 -^
G -'

-6

(5
G -7

6

G I
5 -G i
6 -c>y2.
6 I

0
1
-G ;
-7
G ;
4 -132

5
6

5

March

6

G -8
G

6

1932

5 -5H[

4H-6
63/i~7

534-G
G -7
0
4 -4U
G -8'
5 -f> !
53^-8
G -8 j
6 -6>2":

;

March

6
G

•

i

Interbank loar.s

1931

5

G

6 -7
6 -8
5 -63/
4 -5
4J4-0
4M-6
G
G

-G

4J£-5
0 -(>3
0
4 -4}
7 -8
5 -6
4 -o
(i

5 -6
5 -0
5 -G
5 -6

March

5
6 -G3o 6J, -7
5 -7 • 6 -S
6- 8
G

Chicago

Dtit/""/;/;;;:
St. Louis
Little Hock
Louisville

March

-6

o -0
5 -5

5 -5J-2.
6

1932

1931

43^-5
43^-5
5M

| %

~(\
5j"2~G
G

Birmingham
Jacksonville
Nashville
New Orleans

: F e b r u - •'

-2': 5

4 -f>
5 -6
4*4-5
5

_

March

I

! Loans secured by warehouse
!
receipts

5 -6

6
6
G
G

5 ~f*\
6 j

5

-fiV*!
6 i
G !
(> !
53/£- "6 I

6 j .
5 -6 I
5- 6
G
6 1
5 - 6 ! 5 -G
0
0 -8

-;

}
5 -G
5 -G
5
5 -6
G
G
5 -G
5

5} H i
G -8
6
G
6

43/2-5^
G :
5 .
G :
6
0 :
0 :

NOTE.—Kates at which the bulk of the loans of each class were made by representative banks during the week ending loth of month.
from about 200 banks with loans exceeding $8,000,000,000; reporting banks are usually the largest banks in their respective cities.




-5

4 -f,
5 -0
5 -G

5M-6

G '•

G

63/2-7

4

5 -53-2
5M'"G
43-2-534
G
5
G
6
6
G
G

Kates

APRIL,

277

FEDERAL KESERVE BULLETIN

1932

OTHER BANKING AND FINANCIAL STATISTICS
SHIPMENTS AND RECEIPTS OF AMERICAN
CURRENCY TO AND FROM EUROPE

MATURITY DISTRIBUTION OF BILLS, ETC.
[In thousands of dollars]

BY S E L E C T E D B A N E S IN N E W YORK CITY »

i

[Paper currency only. In thousands of dollars]
1931

I

1932

:
Net
, Net
ShipReshipShipRe- ; shipments ceipts i ments ments ceipts ! ments
from , (—) or
to
to
from ! (—) or
Europe Europe receipts Europe Europe: receipts

Month

470
130
1,380
915
2,570
8,811
10,258
3,226
8,433
3,088
52
i 1,523

January
February..
March
April
May
June
July
August
September.
October
November.
December

4,051 : + 3 . 581
960
+830
863 , -517
1,469 i +554
2,103 : - 4 6 7
779 : - S , 032
394 -9,862
3,723 . +497
3,290 -5,143
11,588 +«, 500
7,039 +6.987
3,749 +2, 226 |

25
0
0

I

Within: 16 to
Total ' 15
30
! days days

3,335 | +3,310
5,221 i +5,221
8,468 +8,408

Bills discounted:
Mar. 2
Mar. 9
Mar. 16
Mar. 23
Mar. 30
Bills bought in
open market:
Mar. 2.
Mar. 9.
M a r . 16
M a r . 23

i
]
828, 402 649,004 1
747,979 570,718!
1660, 71)2 496, 6731
665,583512,343'
633. 255 486, 632j

i For explanation and back figures see BULLETIN for January, 1932,
pp. 7-9.

MEMBERSHIP IN PAR-COLLECTION SYSTEM

64,075
49,224
33,172'
28,602:

[Number of banks at end of February]

439,909 36,2501
M a r . 16
M a r . 23
432,370, 5,250
459,554! 6,143
M a r . 30
M u n i c i p a l war-

rants:
Mar.
Mar.
Mar.
Mar.
Mar.

2
9
16
23
30

47,283'
49,95)4"
48,485
38,787
37,151'

66,090
65,815i
56,784'
61,352;
56,830,

I 48,008ii 37,132

115,640 :
137,584'
105,714:
81,696.
66,362 !

Mar.
Certificates and
bills:
361,768^ 67,546
Mar. 2
382, 609 50, 645
Mar. 9

;.

31 to ; 61 to 91 rtavs Over 6
60 j 90
to 6
days I days months months

4,573
8, 247.
4, 9541
5,791'

6, 7111

27,862
12, 707
8.554
10,970

46, 217i
42,467'
40, 639
35,321'
34,414:

15,907
14, 699
14, 152
13, 548
13,804

12,7111 17,768
11,409: 33,987
10, 852! 32, 690
ll,048 : 28,678!
15,810 10,742'
i

21
251
241
244
238

3
4
4
4
4

901
286
059
232
364

4. 250 6,300 54,816! <)5,204; 133,652
4, 250 6,300106,066! 79.213J 130,135
3.500 24,625101,59]! 211,824; 62,119
3,500 48,236129,530" 155,311: 90,543
3,800 66,916' 89, 550=" 183, 538! 109.607

4, 390
130
8, 065"
130.
3, 8741
4.521! 1,190
5, 5911 1,000

"

20
52"

32 : .
60 .
28..
08 ..

Nomnernber banks
Member bunks !
On pur list

Federal reserve
district

Not on par list

UNITED STATES POSTAL SAVINGS
[Balance to credit of depositors. In millions of dollars]

1932

1931

1932

1931

7,968

8,839

10, 718

395
910
751
749
467
381
1,066
504
636
803
671
575

225
335
332
772
439
146
2,477
1,192
379
1,582
451
506

260
395
443
924
509
173
3,131
1,381
483
1,862
552
605

1932

1931

End of month
United States.. 7,094
Boston
New York
Philadelphia.
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City.
Dallas
-.
San Francisco

i
•
:
,
i
\
•
_:
-•'
,

371
833
706
646
394
340
864
446
575
810
007
502

3,127 i

6
363
765
247
394
870
213
218
51

1

1927

1928

1929

1930

8
443
848
242
423
1,006
198
212
61

January...
February
March
April
May
June
July
August
September
October
November
December

I
'
'
•

141.5
143.8
146.4
147.1
- . -! 147.4
147.4
147.1
1 147.9
__, 148.2
148.7
!
149.0
148.5

148.9
151.1
152.0
152.2
152.0
152.1
151.7
152.2
152.3
153.1
153.9
153.9

' 153.5
154.8
'• 155.0
. 154.3
153.8
153.6
: 157.8
160.1
160.3
. 161.6
• 163.7
164.3

165.1 278.4
292.1
167.9
302.7
169.5
170.2 313.8
171.2 325.0
175.3 347.4
180.7 372.5
186.5 422.7
189.8 M69.9
192.5 538.1
200.7 *555.6
245.4 »595.6

i
Figures cover all incorporated b a n k s (other t h a n m u t u a l savings
banks).




1931 : 1932

3,441

*» Preliminary.

c

Corrected.

i »658.1
! P083.6
i

(

j

278

FEDERAL RESERVE BULLETIN

APRIL, 1932

BANK SUSPENSIONS AND BANKS REOPENED
BANK SUSPENSIONS AND BANKS REOPENED, BY DISTRICTS
[ B anks closed to public on account of financial difficulties by order of supervisory authorities or directors of the bank. Figures of suspensions daring
given period include any banks which may have been subsequently reopened. Figures for banks reopened during given period include reopenings both of banks closed during that period and of banks closed in prior periods. Deposits (including those of banks reopened) are as of date
of suspension where available, otherwise as of the latest available call date preceding suspension]
[Figures for latest month are preliminary]
Banks suspended

Banks reopened

Deposits (in thousands of dollars)

Number

Deposits (in thousands
of dollars)

Number

Federal reserve district
I
1

Members

All
banks
st8te

March, 1932:
Boston
New York
Philadelphia
Cleveland
Richmond.,Atlanta
Chicago
St. Louis.
Minneapolis
Kansas City
Dallas
San Francisco..

Total.
January-March, 1932:
Boston.
New York
Philadelphia...
Cleveland
Richmond
Atlanta.
Chicago
St. Louis
Minneapolis.._
Kansas City...
Dallas
San Francisco.

Total..

,

Members
I
!
.! Non- I All
mera- J
banks
bers
I National! State

1
1

3,893
664

NonAll
mem- II banks
bers

bers

3,893 '

U

664
2 '__
622
256

2
2
i
!
•
:

|!_
|.
:.
•
'

16
5
2
11
1
4 ,

1!

3i
1
2i

8 i

45

s
14
27
37
25
156
76
20
68
17
50
509

38

5
5
9
9
8
27
12
4
13
3
12
107 ;

18
28
15
123
61
16
55
13
39
18

384

3,974
380
360
2,042
2,750
995

880 i
2,750 !
190 j

15,936 '

4,484 |

36,015 '.
_.._!
11,906
S, 913 |
21, 733
2,589 i
11,246
4,689 >
41,134
12,320
9,527
4,391
85,097 ! 31,240
31,813
10, 312
4, 235
1, 530
12, 678
4,403
6,409 j 2,941
28,120
7,464
299,913 ;

MemAll
banks ' bers l

bers

90,798

3,974
380
360
1,162
805
'

11,452

36,015
797 2,196
i 19,144
__.i 6,557

2 !
1 1

3,909
43, 232
18,434
2.705
8,275
3,381
17, 588

1
2
3
14
6
22
20
8
7
8
1

18,871 j 190,244

93

1, 227
10, 625
3,067
87
3,068

10 •

i
28

10

2 :.
1 I
2 !
l |
4'
4;

i i

156
1,119 i
5,471 ;
1,808
1,132 .
66 !
670

680
2,344
481
1,132

18 I 15,499 ; 9,714 |
...
1 '
...:
2 |
12
5 i
18 ;
16 ,
7 •
7 1
5

1
19 I

1,8

: 3,208 •! 3,208
1 !
1 ;

13

Nonmembers

156
439
3,127
1,327
66
670
5,785

1,869 - 1,8
3,900 ; .
3,900
3,208 •.; 3,208 '
2,776!'
577 j ~2~199
5,647 ;. 794 i 4, 853
2,373
680 ! 1,693
7,621 i: 2,901 j 4,720
9,019 • 2,559 I 6,460
3,160 !; 1,132 i 2,028
812
812 !.
1,286
4,809 i1 3,523
150
150 L

74 j 45,344 M 17,243

28,101

i
1
Represents national banks only, except as follows: March, 1 State member in Chicago district with deposits of $628,000, and 1 in St. Louis
district with deposits of $339,000.
Back figures.—See BULLETIN for February, 1932; also Annual Reports for 1930 (Table 117), 1929 (Table 111), 1928 (Table 115), 1927 (Table 111),
and 1926 (Table 98).




279

FEDERAL RESERVE BULLETIN

APRIL, 1932

BANK SUSPENSIONS AND BANKS REOPENED—Continued
BANK SUSPENSIONS AND BANKS REOPENED, BY STATES, DURING MARCH, 1932
[Banks closed to public on account of financial difficulties by order of supervisory authorities or directors of the bank. Figures of suspensions during
given period include any banks which may have been subsequently reopened. Figures for banks reopened during given period include reopenings both of banks closed during that period and of banks closed In prior periods. Deposits (including those of banks reopened) are as of date
of suspension where available, otherwise as of the latest available call date preceding suspension]
[Figures are preliminary and subject to revision]
Banks reopened

Banks suspended
Deposits (in thousands of dollars)

Number

Deposits (in thousands of dollars)

Number

State
Members

Members
N o n - , A 11
All ,
mem£" i
™m- bhban!
anks
banks Na;
sbt t.at tee , bers i
tional

National

i

All ! Mem! Non- banks i' bers l
j memState j b e r s

No

Non
"
Mem '

All

i

New England:
MaineNew Hampshire..
Vermont.
Massachusetts—.
Rhode Island....
Connecticut.
Middle Atlantic:
New York..
New Jersey
Pennsylvania
East North Central:
Ohio
Indiana
Illinois
Michigan
Wisconsin
West North Central:
Minnesota
Iowa
Missouri
North Dakota
South Dakota
Nebraska
Kansas
South Atlantic:
Delaware..
Maryland
District of Columbia.
Virginia
West Virginia
North Carolina
South Carolina
Georgia
Florida-..
East South Central:
Kentucky
Tennessee.
Alabama.
Mississippi
West South Central:
Arkansas
Louisiana
Oklahoma
Texas
Mountain:
Montanfl.
Idaho
Wyoming.
Colorado
New Mexico..
Arizona .
Utah.
Nevada.
Pacific:
Washington
Oregon
California

Total..

1,869

i

!

2,086 I 2,686
522 i 522

664

664

V-

622 :
1,843 I
935 I

622 ; .
1,843 I

M:

360 !,.
1,196 Si.

360
1,196 i
406 !

406

5 ;L
'

483
897 I

3
5

432

935 •

•;.

296

3 ! 1,577
950
2 ! 1,
1, 003
3 !

1,077
1,132

432
500
824
1,003

2 i 2,209

1,409

800

483
601

206 !
50 !-

206
50

1, S

1
1 ]

52

156

156

439

439

83
812
339
680

584
2,750

?I
2

|
j
I

•!

1:
1 ,
45

38 ;

584
2,750

351 ;!

79

533 !
Ill ;

111

15,936

812
339
680 .

670

66
670

18 | 15,499

9,714 : 5,785

272 :

533 '
4,484

11,452

28

10 •

i Represents national banks only, except as follows: 1 State member in Illinois with deposits of $628,000, and 1 in Arknasas with deposits^of
$339,000.




280

FEDERAL RESERVE BULLETIN

APRIL,

1932

BANK SUSPENSIONS AND BANKS REOPENED—Continued
BANK SUSPENSIONS AND BANKS REOPENED, BY STATES, JANUARY 1 TO MARCH 31, 1932
Banks closed to public on account of financial difficulties by order of supervisory authorities or directors of the bank. Figures of suspensions
during given period include any banks which may have subsequently reopened. Figures for banks reopened during given period include reopcnings both of banks closed during that period and of banks closed in prior periods. Deposits (including those of banks reopened) are as of
(into of suspension where available, otherwise as of the latest available call date preceding suspension]
[Figures included for latest month are preliminary and subject to revision]
Banks reopened

Banks suspended

Deposits (in thousands
of dollars)

JNumber

Deposit s (in thoiisands of dollars)

Number
State

Men ibers

Members
All
banks

New England:
Maine
New Hampshire
Vermont
M assach usetts
Rhode Island
Connecticut
Middle AtlanticNew York
_
New Jersey
Pennsylvania
East North Central:
Ohio
Indiana
Illinois
M ichigan
Wisconsin
West North Central:
Minnesota
Iowa
M issouri
North Dakota
South Dakota
Nebraska
Kansas
South Atlantic:
Delaware
Maryland
District of Columbia
Virginia
West Virginia
North Carolina
South Carolina
Georgia
Florida
East South Central:
Kentucky
Tennessee
Alabama
Mississippi
West South Central:
Arkansas
Louisiana —_
Oklahoma
Texas..
_ .
Mountain:
Montana
Idaho.
.
Wyoming
Colorado
New Mpxico
Arizona
Utah
Nevada
PacificWashington
Oregon
California
Total

NonmemNa- State bers
tional

All
banks

National

Mem- NonNonAll
members banks bers^ members

State

NonMem- members! bers

All
banks

i

2

2

9,285

9 285

3

3

26, 730

26 730

1
2
9

9,349
4,779
22,909

5
6
17
12
39 !
86 1
6
1
12
42 j
36
3
2
13 i
29 !
,
3 !
5
2 ;
20 j
8
6
2 i
25

4 i

8 j
5

4

3
8

1

1
6
17
1
1

6

5
6
1

1

i

6

11
33
63
5

4,531
24,580 •
42,056
3,923
637

12
36
29
2
2
13
23

2. 484
25, 485
14, 477
226
87
1,780
6,365

1
1

3,874
16,871
18, 294
2 791

3
5
11
4
8

3
1
1

1
3
4

1

2,830

2, 484
15,110
6, 053
134
87
1 780
3, 535

792
839

897

3

338
207
3 068
24 406
1, 325
439

2
1
5
3
1

3, 255
238
903
007

4

011
1,099
1.780
3,381

4
1
3
8

797

657
7,709
18,103
1, 132
637

5, 599

1

2

i

4
2
15
6
4
1

590
207
13,035
25 674
1,487
871

18
3
4
5

8,676
1 266
3 748
607

3,074
1 028
2 089

6
4
8
13

696 ,
?., 310
2,762
6,409 •

85
680
982
2, 911

2
25
1
6
1
3

1
1

,

9,967
1 268
162
432

6
11
17 :

1
1
3
3

2
5

o
1

4

306
639

306
79

7

3

4

938 i

518

1
1

5, 291
455

252
:
'
=

1

1,100
2, 892
18 632

8,249
1,090
4,277

5, 084
7, 909
92

792
1,736 i

l

1

2,347
696

531
87

1
1
2
5

1,869

1,869

3,900
2,686
522

2,686
522

3,900

3
7

2,776
577
999
2,826 ! 1,077
2, 324
1,132
557
3, 286

2,199
999
1,749
1,192
2,729

1
2
3
3

400
2,209
4,925
339

400
800
3,007
339

4

621

3

1,484

1

1
1
4
3
1
1

591
2,452
815
305
309
439

1

3

488

0

2, 255

3

694
680
191
4,809

4

1,409
1,918

621

i
1

6
1
1
3

3
5

1.484
567
227

160

24
2,452
588
305
309
439
328
2,255

339
680
3, 523

355
191
1,286

500
._

390
M

13
3
12 ;
7
16 i

7

509 ,

107

4

2

11
3

9 919
98 L

1
2

7
5
9

6,932 !
1,939 !
7,680 i

18

384

299,913

3, 873

863

9 080
981

1,185
1,020

1,874
919
4, 168

1

18, 871

190,244

93

3, 512
90, 798

!

1
19

74

150
45, 344 j 17, 243

150
28,101

1
Represents national banks only, except as follows: 1 State member in Illinois with deposits of $628,000, and 1 in Arkansas with deposits of
$339,000.
Back fiqures.—See BULLETIN for February, 1932; also Annual Reports for 1930 (Table 118), 1929 (Table 112), 1928 (Table 116), 1927 (Table 112),
1926 (Table 100), and 1925 (Tables 97 and 98).




281

FEDERAL RESERVE BULLETIN

APRIL, 1932

INDUSTRIAL PRODUCTION, BY INDUSTRIES
[Index numbers of the Federal Reserve Board.*

1923-1925 average = 100]

Without seasonal adjustment
Industry

1932
February j January

l

Pig iron
Steel ingots

34 |

44

TEXTILES...

("otton consumption
Wool
(? onsumpt ion
Machinery activity
Carpet, rug-loom activity..
Silk.
Deliveries
Loom activity
FOOD PRODUCTS

Slaughtering, meat packing
Hogs
Cattle
Calves
Sheep
Flour
Sugar meltings..
I

W ood pulp and paper
Newsprint
Book paper
Wrapping paper
Fine paper...
Box board
_
Wood pulp, mechanical
Wood pulp, chemical
Paper boxes
Newsprint consumption
LUMBER

1932

, February ; February

1931
January j February

j

MANUFACTURES
IRON AND STEEL

PAPER AND PRINTING

Adjusted for seasonal variation

1931

!
i
!
i
I
!
I
!
j
I

I

92 ;
91 |
69 j
75 |
74
41
122
137 |
93 |
91 !
100 j
113 J
75 :
90 !
149
79
72

41 !
32
42 !
94!
87 !
05 :
73 !
07 .
38 !

02
78
100 i
92
79 :
88

41
33
42
80
85
00
09

32
44

153
It,9 •
121 "__

110 i
128 I

98 i
110 i
124 :
84
87 .
174 i
'85

92
90
100
75
92
132
89
81

90
98
102
85
97
159
82
73

I
!
:
,

112 '..
105 ...

;
I
!
'
;
!

72 i

152
113

95
80

54 i.

150 1
179 !
Ill ;

99
81
90
103
81
89
138
112

89
83
04
71

j
I
i
!

73
01
;
:

122 L .
90 ...
100 ..
118 „
74 ...
99 ._
104
123

137
114 !

140
158
'93
92 j
93 s
83
93 .
173 :
r
86 :
108;
101.
93
74 '
98 .
82:
95 '
100
80
91
J57
JIG

92
94
90
85
99
141
92
87
109
102
77
117
89
98
118
72
90
148
124

43 !

_•

TRANSPORTATION EQUIPMENT:
38
1
17

Automobiles
1 ^ocomoti ves
Shipbuilding
90
81
71

LEATHER AND PRODUCTS...

Tanning
Sole leather.
_
Upper leather—
Cattle
Calf and kip...
Goat and kid.
Boots and shoes

88
Go
10(5
90

80
54
90

C E M E N T AND GLASS:

Cement
Glass plate

_

34
81 :

1

NY)NFERROUS METALS: —Tin deliveries..
FUELS, MANUFACTURE:

(JO
47

73
7 •
110 ;

35 ;
i
\

45 '
2'
24 ,

08
7
154

90
80 !
80

89 !
79 |
;

'85
79 |
•

89
84
—

'
•
•
;

76 j
71 '
101 I
96 ;

73
05 :
101
r
89

57
Si
123
92

52
116 |
105 '•

50 !
75 i
:

65
75

80
107

140

147

75

09

i
•
•
;

GO
92
95
70

99
92
95
7L

114 I
74 !
144 !

124
82
150 :

133
80
174

03
58
109
40
54

58
54
111
45

00
73
128
93

Petroleum refining
Gasoline
Kerosene
Fuel oil
Lubricating oil
Coke (by-product)

141
181
69
92
87
(58

140
179
70
93
87
07

RUBBER TIRES AND TUBES

93
90
70

85
88
04

147
185
71
104
94
102
100
103
75

104
63
131

1.10
03
153

121
09
158

00 :
02 :
107 •
49
50
33 :

05
59
107
48
e
t>0
r
35

80
107
09
81
05

Tires, pneumat ic
Inner tubes.
TonACCO PRODUCTS

Cigars
Cigarettes

Bituminous coal..
Anthracite coal
Petroleum, crudeZinc
Lead
Silver

141
'_

67 i
_.-J

;
!
'••
:

GO
85
8S
07

!
:

* As recently revised; see BULLETIN for March, 1932, pp. 194-190. Back figures available on request.
Includes also lead and zinc; see "Minerals."
For description of these Indexes see BULLETIN for February and March, 1927.
1




j

;

;.u

r

59 j
35 "

e Corrected
' Kevised.

73
81
110
05
79
60

282

FEDERAL RESERVE BULLETIN

APRIL, 1922

FACTORY EMPLOYMENT AND PAY ROLLS
[Index numbers of the Federal Reserve Board; adjusted to Census of Manufactures through 1927. 1923-1925 average=100]
Factory ernploymen
Without seasonal adjustment

Industry

__ _

__

Steel works and rolling mills
Hardware
S t r u c t u r a l iron w o r k

-

______
_

Heating apparatus
Steam fittings
Stoves
Cast-iron pipe

__
-

MACHINERY

Machine tools
Agricultural implements
Electrical iuachincrv
TEXTILFS AND PRODUCTS

A. Fabrics
_ _
Cotton goods
Woolen and worsted manufactures
Woolen and worsted goods
Hosierv and knit goods
Silk manufactures
Dyeing and finishing textiles
B. Wearing apparel
Clothing, men's
Shirts and collars
Clothing, women's
Millinery

FOOD PRODUCTS

_

_

_

Baking
Slaughtering and meat packing
Confectionery
Ice Cream
Flour
_
_
Sugar refining cane

___

PAPER AND PRINTING

Printing, book and job
Printing, newspapers and periodicals Paper and pulp
Paper boxes

LUMBER AND PRODUCTS

Lumber, sawmills
Lumber, mill work"
Furniture

_-

__

TRANSPORTATION EQUIPMENT

Car building and repairing..
Automobiles
_ ..
Shipbuilding
LEATHER AND PRODUCTS

__
_ _
_.

Boots and shoes
Leather
Clav products
Brick, tile, and terra cotta
Pottery
Glass
Cement
NONFERROUS METALS AND PRODUCTS

.

Stamped and enameled ware
Brass, bronze, and copper
CHEMICALS AND PRODUCTS

R U B B E R PRODUCTS

Cigars and cigarettes
Chewing and smoking tobacco, snuff

__ _ ._

Feb.

:

Jan.
68.1

77.8

53.6

52.4

73.2

04.0
OG.G
60. 1
09.4
52.1
50.4
53.6
54.3
61.8
50.1
59.4
49. ?,
76.3

36.3
35.7
40.4
47.3
29.8
30. S
28.8
34.9
44. 5
30.4
43.6
38.6
64.4

72.4
74.4
73.7
03.1
04.4
55.9
84.9
70. 3
95.1
07.4
08.2
88.1
02.9 !

71.1
72.9
72.0
58.4
58.7
50.8
85.2
72. 0
93.3
GG. 0
51.7
G8. 1
88.9
02.9

00. 5
57. 1
53.7
40. 5
48.0
39.8
GS. 3
57. 0
S3.8
52.4
37.8
47.5
72.8
50.2

76.9
72.7
03.9
59.8
00.6
56.2
83.2
85.5
115.2
85.4
54.8
70.3
132.7
72.1

83.
89.
82.
78.
81.
75.
70.

7 ;
2 i
0
9
1 •
G :
9 ;

85. 3
1)0. 9
83. 8
80.1
81.7
76.7
82. 7

37.2
37.3
38.4
43.0
33.0
32.5
33.4
31.9
45.0
37.3
43.2
49.3
02.9
59.8
00. 3
56.9
50.4
53.4
36.4
73.2
55.8
90.3
58.8
41.G
49.8
84.4
53.9
76.3
81.2
78.7
66.7
69.6
66.2
61.5
S3. 5
83.0
100.8
66.7
67.8
25.9
19.7
27.6
38.2
45.6
37.0
52.0
79.2
61.4
61.9
59.8
32.9
24 3
15.3
48.1
51.0
31.4
45.0
26.8
50.3
72.1
73.0
75 1
45.3
54 2
56. 7
44.2
53 4
51 8
67.4

67.5
70.5
57.8
75.9
54.2
57.2
51.3
57.9

61.2
55.5
57.8
51.1
75.1

75.9
78.0
69. 3
88.9
05.9
65.7
60.0
67.2
80.6
73.7
89.2
93.0
93.1
77.2
75.9
71.4
05. 3
05.3
04.9
82.4
85.4
105.4
80.4
57.2
80.1
116.7
74.3
90. 3
97.1
80. 4
SS. 8
88.6
79.8
81.1
94. 9
100. 9
102. 4
85.6
85.4
56.3
49.9
57.0
74.1
64.9
59. 7
68. 8
88.9
78.4
79.8
73.1
05. 0
02.1
54. 7
82.3
70.9
64.7
66.8
46.8
73.6
94.5
95. 6
97.4
77.4
71 4
72.4
68.7
84 6
86 3
71.2

78. 0
82.8
82.4
70.3
69. 6
67.4
62.3

91.6
95. 2
95. 6
83.9
84.4
80.5
75.2

85. 5
88.8
103. 5
63.1
08. 3

100.7
104.9
112.6
84.9
84.0

2G.6
20.3
30.2
37.9

45.6
38.8
47.3
59.1

44.3
38.0
47.7
81.2

62.2
59.5
61.1
98.0

53.3
52. 5
56.3

68.8
67 6
73.2

31.1
24.1
10. 4
44.3
44.9
31.4

51.4
43 4
35.2
65.3
66 1
53.9

44.9
26.2
50.4

64.4
44.4
70.2

71.4
71.4
75.9
45.4

92 9
89.8
100 8
74.4

53 0
54. 3
48.3

63 8
67.2
50.7

53 0
51 0
69.5

65 3
64 3
73.3

82. 9
87.6
85.1
77.3
70.2
75. 6
73. 6

84. 2
88.8
86.8
78.5
70.0
76. 3
77. 0

89. 4
95.3
89.1
87.0
70. 7
79.8
77.6

87. 3
88. 6
98. 4
80. 7
75.7

89. 0
92. 3
99. 8
80. 4
76.9

95.1
101.9
102.6
85.6
84.2

87. 2 '
87.7
98. 2
80. 8 1
70.8 I

88. 3
90. 2
99. 4
80. 5
77.4

42.0
34.0
42. 5 '
64. 4

42.4
35.3
44. 4
61. 0

43. 3
35. 4 i
43.1 :
05. 3 ;

43. 0
30. 9
45. 6
62. 3

55. 4 !
44. 8
65. 7
84. 2

53. 9
43. 9
03. 4
84. 3

54.0
47.7
56. 2
73.0
65. 2
58. 9
69.8
93.9

55. 6
44. 4
07. 1

80.0
82.4
69. 6

75.7
77 5
08. 3

55. 1
45. 4 •
64. 7
79.8
78.1
80.7
67.5
51.4 •
45. 7
36. 3
71. 5 i
64.1
49. 3

51.6
46. 3
37. 0
70. 0
63. 0
50. 2

56. 0
32.3
64.1

32.7

80.2 :
82. 9
81.2 j
59. 0 j

81.9
85. 3
82.8
57. 7

68.1 i
70. 0 !
62. 5 |
72 8
73.1
70.1

09 7
71. 2
05. 2
74 3

57.2 ;
33.2 j
65.3 ;

56.8
31.4
65. 4

68 6
70. 3
63.4
71.9 i
71. 6 .
74. 5 1

81.7
85. 9
81. 2
Sfl 3
00. 1
fiO.
7
07. 2
69 0
68. 4
74. 2

80.3
81. 5
75.3
60.7
57. 2
47.6
83.3
69. 0
58.8
68.1
48.0
75.0
95.6
97.4
96.2
81.6
72. 0
72.7
69. 8
83. 4
84. 5
75.6

81.9
75. 4

77.4

07 1

57. 4

74.7
71.0

NOTE.—For description of these indexes see BULLETIN for November, 1929 (pp. 706-716), and November, 1930 (pp. 662-677).




Feb.

02.4 !
05.2 :
58. 6 !
65. 3
52. G
49.2 :
55.0
49.8

GO. 6
00. 6
66. 3
83.4
80. 7
10S. 1
84. 1
58.7
81.7
120. 8
72.8

47.7
42. 0
33.1
68.6
59.1
45. 7

1931

Jan.

67.8 '

71.6
73.4
73.0
59. 7
GO. 0
58. 2
84.3
71.5
93.9
00.9
51.6
68.6
91.3
59.4

i
•
;
:
;

1932
Feb.

70.5
79.1
70.5
80.9
05.0
66.4
63.7
G4.7
81.1
74.0
90.8
99. 6
93.1
79.4
77.4
73.3

7-i.4 :
70. 0
75.0
64.4
05.8
57. 2
85. 9
71.3
97.4 i
70.4
55.7
09. 6 i
95.8 '
61.6

!

Feb.

77.3

61.2
54.9
59.4
51.0
76. 3

j
I
i

Without seasonal adjustment

1931

1932
Feb.

01.4 i
55 8
58.9
54.4 !
75.1 j

81.1 '
84. G '
80. 2
62 2 i

Chemicals and drugs
Petroleum refining . __
Fertilizers

TOBACCO PRODUCTS

60.3

62.8
63.0
GG. 1
fiS.
8
60.4
59.6
63. 7
67.4
47.9
51.8
49.7 i
48.8
53. 7 '•
47.1
47.9
51.9

48.4
42. 4
31. 5
72.4
62. 3
44. 7

CEMENT, CLAY, AND GLASS___

Automobile tires and tubes
Rubber boots and shoes

Jan.

67.3

TOTAL—ALL MANUFACTURING INDUSTRIES
IRON AND STEEL AND PRODUCTS

Adjuste< 3 for seasor al variation

1931

1932
Feb.

...

Factory pay r oils

71.9
63.4
72.3
92.9
89.6

283

FEDEKAL KESERVE BULLETIN

A P R I L , 1932

WHOLESALE PRICES, BY GROUPS OF COMMODITIES (REVISED SERIES)
[Revised index of Bureau of Labor Statistics (784 price series); 1926=100]
All
commodities

Year and month

1927
1928
1929
1930
1931
1931—February...
March
April..
May-.
June.-July
August
September.
October
November..
December..
1932—January
February...

__•

Other commodities

:

Farm

;-

p r o d - •• F o o d s

ucts

i

99.4
105.9
101.9
88.3
04. 8
7(5. 8
70.1
70. 0
70.0
74.8
70.1
07.1
72.1
05.4
72. 0 ! 04.9
72.1 !
63.5
7.1.2 |
00.5
70.3 !!
58. 8
70.2
58.7
os. o; 55. 7
52. 8
07.3;
50. 0
00.3 |

95.4
90.7
95.3
80.4
73.0

'Hides and Textile Fuel and Metals Building ChemiM
cals a n d f u S Il a ntaoel: Total
lighting and metal
leather
eous
drugs
products products materials products materials
in^oods
i
91.0
92.9
91.0
85.2
75. 0

107.7
121.4
109. 1
100.0
80. 1

95. 0
95. 5
90.4
80. 3
(50. 3

71.0
09. 1

78.3
77 2
75*. 9
75. 1
71. 1
73.9
74. 2
73. 9
72.9
73. 5
72. 3

SO. 9
57.6
87.5
87. 0
8S.0
89. 4
88.7
85.0
82. 5
81.0
79.8

70.9
70.0
08.2
07.4
(50. 0
(56. 5
05. 5
01. 5
03.0
02.2
00.8

i)L 7
02. 5

71.7
71.3

79.3
78. 3

59. 9
59. 8

90. 7 i
ioi.o !
99.9 |
90.5
74.0 •
78.0 |
77.0
70.3
73. 8
73.3
74.0
74.0
73.7
73. 3

1930

Subgroups
F A R M PRODUCTS:

Grains
Livestock a n d poultry
Other farm products

I

H I D E S AND LEATHER PRODUCTS:

|

Boots a n d shoes
Hides a n d skins
Leather
Other leather products

59.5
70.3
73.4

59.6 i 56.0
64.1 ; 61.9
71.5; 70.8

49.0
63. 0
71.3

44.8
67.0
67.3

44.2 i 44.3
61.0 j 57.6
65.4 j 64. 2

83.5
74.5
74.3
83. 6 : 82.0
71.1 . 71.4

74.3
76.2
79.9
69.9

73.1
74.0 •
76.i;
74.4 '
67.9 !

78.8
74.3
76.4
71.3
68.5

71.5
74.2
73.4
70.6

82.2
70.9
73.4
76.0
69.6

84.6
70.3
71.0
73.6
68.5

94.8 ! 94.6
94. 9 94.8
62.6 i 65.5
62.1 [ 62.0
88. 4 j 88. 4 ! 88.1 I 87.8
102.0 101.6 I 101.4 I 101.4

93.5
72.7
89.8
101.4

93.5
69.1
90.3
101.4

93.5
58.6
83.4
101.1

76.1
66.8
60.0
43.8
67.4
75.2

75.9
64.0
59.2
43.7
67.4
74.4

75.5
61.5
59.2
43.5
65.7
74.1

92.2
83.7
81.5
98.4
103.2
37.5

94.3
83.9
81.5
100.6
103.4
38.9

102^1 !
100.8
39.2

! 83.7 j
J 75.7 :
70.9 !
| 88.4 '
\ 74.5 !

83.0
75.5

95.1
64.4
90.8
102. 3

|
'
j
:

95.0
57. 7
89.0
102.0

79.1 j

79.1
73.1
64.5
47.0
73.5
77.8

74.2;

T E X T I L E PRODUCTS:

83. 5
75.6
72.3
'. 48.2
:
73.9
77.8

F U E L AND LIGHTING MATERIALS:

89.6
' 89.1
__• 83.8
100. 7
95.4
51.1

M E T A L S AND METAL PRODUCTS:

Agricultural implements
Iron and steel
Motor vehicles
Nonferrous metals.

94. 4
86. 6
96.0
71. 7

B U I L D I N G MATERIALS:

Brick a n d tile
Cement.
—
Lumber
Paint materials
Plumbing and heating
Structural steel
Other building materials

87.1
90.6
78. 2
83.7
85.3
• 81.7
89.3

CHEMICALS AND DRUGS:

!

Chemicals
-.
Drugs and Pharmaceuticals
Fertilizer materials
Mixed fertilizers
HOUSEFUKNISHING GOODS:
Furnishings
Furniture.

89.9
; 65.7
81.4
90.6
;
85. 6
i 92. 5

MISCELLANEOUS:

|

Auto tires and tubes
Cattle feed
Paper and pulp
Rubber, crude
Other miscellaneous

:

50.2
78.2
84. 0
.: 18.6
•: 90.3

-

91.0
85.4
82.6
77.7
69.8

88.1
88.0
87.9
8(5. 8
80.4
85. 7
84.9
82. 7
81.0
80.9
78.5

71.5
72.0
71.5
70.5
69.7
69.7
68.3
68.2
66.6
68.7
66.8

77.7
77.5

65.6
64.7

Oct. • N o v . Dec.

60.4
59.3
70.7
69.6
73.6 • 74.2

|

89.2
75.9
75.4
89.2
77.0

i 97.7
69.4
91.5
104.8

97. 5
95.1
94. 3
92.7
S4.9

j

I

••

_;
|
'
I
!

90.8
95. 0
94.2
89.1
79. 3
S3. 3
82.9
81.3
80. 5
79. 4
78. 9
70.9
76.3
75.6
7(3.1
76.1
75.7
75.5

94.7
94. 1
95. 4
S9.9
79.2
82.5
82.5
81.5
80.0
79.3
78. 1
77. 0
77.0
76.1
70.2
75.7
74.8
73.4

1931

! 64.0
62.4
i 76.3 75.2
i 78.1 i 75.3

Butter, cheese a n d milk
Cereal products
Fruits a n d vegetables
Meats
Other foods

Anthracite coal.
Bituminous coal
Coke
Electricity
Gas...
Petroleum products

96.3
97.0
100. 5
92.1
84.5
80. 5
8(5. 4
85.7
85.0
84.4
84. 3
83.9
83. 9
82. 8
82.0
82. 2
81.8
80.9

Dec. I J a n . ! F e b . ! M a r . Apr. ; M a y | J u n e | J u l y ' Aug. Sept.

FOODS:

Clothing...
Cotton goods
K n i t goods
Silk a n d rayon
Woolen a n d worsted goods
Other textile p r o d u c t s . . .

88. 3
84. 3
83.0
78.5
07. 5
72. 5
6S.3
05.4
65. 3
62. 9
02.9
06. 5
07. 4
07.8
09.4
08.3
07. 9
08.3

1
i
!
I

i

51.3 ! 47.0 46.7
55.7 j 51.7 53.4
63.1 61.2 54.8

46.1
50.3
52.7

79.8
72.2
63.5
63.2
67.2

67.8
71.0
62.2
61.9
61.9

64.1
69.6
61.8
59.5
59.4

89.2
48.8
78.6
99.7

49.0
77.5

88.5
46.1
76.5
98.8

86.1

I. 7
73.1
65.1
68.2
71.1 : 67.7
68.0
69.7
70.6 :

93.1
50.0 :
80.7
ioi. i :

92. 5
49.0
78.8
ioi. i

I

76.9
71.4
60.7
43.4
69.0
76.2

i
I

76.9
69.2
60.7
41.4
68.5
76.7

88.9 '
87.8 !
83.8 '
94.5 j
95.8
50.2 !
!
94.3 '
85.6 ;
94.4 I
69.5 I 63.4 j

88.4
86.4
86.0
84.4
83.7
83.7
95.9
93.7
94.6 i 96.1
41.8 | 37.4

!
|
!
j
'
i

87. 5 88.8 90.8
83. 9
83. 2 83.5
83.7 81.5 81.5
97.9
98.0 i 98.6
99.0 ! 101.9 103. 5
30.3
35.9 | 30.7

94.3
85.4
94.0
69.3

94.3 !
84.1 |
94. 5
67. 5 j

94.3
83.8
94.5
63.3

94.2
83.5
94.2
61.2

94.2
82.7
94.7
61.4

94.3
82.4
94.7
60.1

94.1
82.3
95.4
59.0

85.6
81.7
95.4
54.9

•
•'
.
!

85.5
81.5
95.2
54.7

85.5
81.0
95.2
53.8

87.0 :
90.3 !
76.4 |
83.2 •
87.4 :
83.0 !
87.8 !

85.0
84.1
74.7
81.4
86.6
84.3
87.6

83.9 !
81.0 j
73.4 !
81.2 i
86.6 i
84.3 |
86.9 >

83.7
79.7
69.4
80.2
86.6
84.3
86.3

83.7
77.7
68. 5
80.0
86.6
84.3
85.4

83.4
75. 8
67.2
79.6
86.8
84.3
83.7

82.9
75.8
66.9
78.4
83.8
81.7
83.7

82.6
75.8
66.9
77.6
82.6
81.7
82.6

82.6 '
75.1 •
65.2
77.0 ::
81.6
81.7 .
82.0

81.4
74.6
65.9
77.5
81.4
81.7
81.9

80.0
74.6
65.8
76.6

79.3
75.2
65.6
75.4
74.1
81.7 ! 77.3
81.5 ; 81.0

79.3
75.3
62.9
75.1
65.8
77.9
80.2

88.3 j 86.6
65. 3 | 65.2
81. 4
81.1
89.1
90. 4

86.4
64.8
80.8
88.7

85.1 ! 83.9 82. 5 j 82. 4
63. 4 I 63. 2 I 62. 6 ! 62. 1
80. 6 i 80. 5
79. 8 ! 78. 7

80.5 i
61.9 ;
74.4 :
78.7 :

79.8
61.7
74.2
77.6

79.7
61.6
70. 2
77.2

80.6
61.3
70. 1
77. 7

80.8
61.0
70.1
77.1

75. 5

80.8
60.1
69.8
73.7

84.9
92.1

84.5
91.9

84.2 !, 83.6 I 83.4 82.8
91. 9 90. 4 i 89. 8 : 89.1

81.7 ! 81.2
84.6

79.8 ; 79.7
82.4 ! 82.3

76. 6 76.1
80.6 79.5

75.9
79.5

46.9 :
81.2
82.1 j
13.3 j
89.3 !

46.0 ;
50.8 |
80. 6 !
11.2 =

46.0
44.4
80.7
10.6
86.4 j 86.7

46.0
49. 4
80. 5
10.2
86.9

73.5 i
64.8 !
49.0 i
73.7
77.2 ,

88.9 ;
88.i :
83.8 i
99.9 i
95. 8 !.
50.4
94.4 '
85.5 !
95.1 !

86.3 !
87.9 !
74.0
80.5
80.6
84.3
87.8

84.6
92.0

78.1
72.4
63.8
45.8
71.8
77.0

46.9
47.2
46.9
82.1
.0
71.6
82.6
83. 6 I 83.1
17.1
16.1 •• 16. 0
89.9
89. 3 ; 89.6

;

i
i

76.3
67.6
59.8
41.9
68.0
75.5

83. 5 i 82. 8 I 82. 4

46.9
67.9
81.5
13.7
88. 5

46. 0 !
61.1 !
80.7 i
13.3 I
88. 2

80. 2

46.0
55.8
80.6
13.2
83. 6

I

73.9 j 72.6 70. 8 I 70. 7 I
59. 7 I 58.1 56.4 j 55.8
59.2 ! 59.0 58. 5 j 55. 8
41.7 41.8 39.0 ! 37.7
64.6 64.2 63.9 I 63.3 I
72.4
72. 5 71.3 70.7 |

70.6
56.4
55.8
36.5
63.1
69.7

94.2
83.6

94.8
84.3
80.4

94.2 94.8 94.8
83.7 83.8 84.4
81.4 81.1 80.5
103. 4 104.1 107.5
100.1 98.2 ! 98.6
42.5 39. 6 38. 8

!
;
i
i

85.5
95.3
55.4

60.6

i 46.0 40.8 : 39.7
; 59. 8 53.9 53.0
i 80.8 80.8 • 78.0
I 9. 6 9.5 , 9.3
86.7 85. 9 85.2

38.6
85.1
79.3
95.3
52.7

39.5
48.2
76.7
8.6
84.4

Back figures.—YOT revised indexes of groups, see BULLETIN for March, 1932 (p. 199); indexes of subgroups available at Bureau of Labor Statistics.




284

FEDERAL RESERVE BULLETIN

APRIL, 1932

BUILDING CONTRACTS AWARDED, BY TYPES OF BUILDING
[Value of contracts in millions of dollars. Figures are for 37 States east of the Rocky Mountains, as reported by F. W. Dodge Corporation!
'Public works and! Educational
public utilities j

Total

All other

Month
1932

1931
January
February
March..*
April
May
June
July....
August
September
October
November
December

_
~ -.-

__

Year

1932

1931
96.8
79.0
152.2
133.4
109.6
141.6
117.4
73.3
86.5
83.0
48.0
50.5

! 228.0 ! 84.8
i 235.4 :
89.0
370.0 :
I 336.9 •
; 306.1 "..
i 316.1
"' 286.0
!
233.1
!
251.1
! 242.1
' 151.2
;
136.9
311.1 i

3,092.8

BUILDING CONTRACTS AWARDED, BY DISTRICTS

24.1 I
28.3 ;
i.
!
|
!
|
1
'
i

1,171.1 i

1932

1931

i
:
'
..!

19.4
16.7
24.3
23.0
23.8
22.5
26.1
19.3
21.2
14.7
11.8
6.1

1931

4.4
10.8

20.5
27.3
35.7
47.1
41.8
43.6
39.8
56. 5
49.3
33.8
27.8
31.0

. 228.8

1932

16.3
11.0

454.3

BUILDING PERMITS ISSUED, BY DISTRICTS
[Value of permits in thousands of dollars!

[Value of contracts in thousands of dollars: figures for 37 States east of
the Rocky Mountains, as reported by the F. \Y. Bodge Corporation]
1932

1931

1932

Federal reserve district

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta..
Chicago
St. Louis
Minneapolis..
Kansas City.
Dallas

-_

i
;
.
;
i

Total (11 districts)

;

Jan.

6,917
14.315
6,821
6,731
7,341
5, 603
18,051
6,119
4,654
5,016
7,478

7,175
24,803
8. 400
6, 924
5. 615
5,711
12,628
4, 905
1,371
4, 059
3,205

89,040 i

84, 798

Jan.

Feb.

Federal reserve district
Feb.

1931

I
Feb.

Feb.
19,517
70, 060
14,143
16,493
19. 660
20,351
29, 011
12,509
5, 507
10,174
17, 973

Boston
New York
Philadelphia. ..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas C i t y . . .
Dallas
San Francisco..

1,780
9,548
1,562
5,890
3,042
1,277
2.073
1.214
574
867
1,479
5,593

Total....

168

34,929

1,990
17,371
1,373
4.241
2,638
895
1, 314
649
742
841
1.132
6, 359

3.340
31,606
2,257
6.000
8,463
1,891
12, 230
2, 469
1,410
4, 552
3,264
10,843

39,544 i

88,326

235,405

BANK DEBITS
COMMERCIAL FAILURES, BY DISTRICTS

[Debits to individual accounts. In millions of dollars]

[Amounts in t h o u s a n d s of dollars; figures reported b y R. O. D u n Co.]
1932

Federal reserve district

1932

Feb.
Boston
_
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco.__

Total

1931

Jan.

253
622
159
256
198
154
347
148
66
145
121
263

308
827
215
322
159
188
495
158
74
157
178
377

_-J 2,732

3,458

.;
..:
i
.- 1
,
I
;
'
:
!




Number
of centers

Liabilities

Number

1932

! 4,610 6,068
i 25,329 21, 799
! 6,978 12, 201
i 8,783 9, 628
I 7,970 2,404
5,608
3,410
i 13,917 18, 700
J 2,805 3,918
! 870
671
2,952 5,692
2,568 4,052
4,707
6,119

Feb.

Jan.

1
140

14,381
12, 870

17 676 .
15, 893

20,948
17, 084

11

1,420
14,965
1,261
1,282
490
622
3,155
637
392

1,812
18,380
1,472
1, 723
593
782
3,941 .

406
1,904

456
840
484
2,267

1, 760
21,(507
1,710
1,932
597
860
4,266
809
507
950
511
2,524

27,251 :

33,569

38,031

Feb.

1931

Feb. I Feb. j Jan. Feb.
247
490
115
202
160
183
371
181
69
108
114
323

1931

7,115
8, 728
4,603
7,123
2,382
3,089
5,740
5,158
3,446
1, 226
2,153
8,845

2, 563 i 84,900 I 96,860 59, 608

New York Citv
Outside New York City
Federal reserve district:
Boston
New York
Philadelphia.
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
. __
Kansas City
Dallas
San Francisco
Total

10
13.

_.

_.

15
21
5
9
15
10
18
141

717 •

819 •

FEDERAL RESERVE DISTRICTS

Memphis
#

LiltIe Rock/
!•__,

fPa-so—j J 1 1

DALLAS®
TEXAS

. —
®
•
O

i BOUNDARIES OF FEDERAL RESERVE DISTRICTS
BOUNDARIES OF FEDERAL RESERVE BRANCH TERRITORIES
FEDERAL RESERVE BANK CITIES
FEDERAL RESERVE BRANCH CITIES
FEDERAL RESERVE BANK AGENCY