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329
I'

"'

x... Ie91
H:CliORANDUM
April 8,. 1920.
To Governor Harding

Subject: B~1~cors' Acceptances Purchased in tho open rncrl(ot held
by tho Fedor~1 Reserve B2rur of
:NO\i York, Harch 27, 1920.

From 11r. Paddoclc.

On February 28, 1920, tho total of acceptances purchased in tho
open marlmt by the Fodcr111 Rosorvo Banlt of :New Yorlc reached
the largest amount ever hold by the Barut.

~;231,257

,300.00,

At tho close of business

March. 27, 1920, when the pros ant examination v1as commenced, tho acceptancc holdings amounted to ~~196,480,000 .. 00 •
•
A general classification of tho 7,500 accc;>tancos held on Harch
27, 1920, is as follovTS:

Character

.Amount

Import and Export Bills
0154,45o,ooo.oo
Domestic Bills
25,750,000.00
Foreign Trade Bills
2,860,000.00
Domestic Trade Bills
270,000.00
Dollar Exchcngo Bills
2,150,000.00
Bills. hold under repurchase 11greament
11,000,000.00
$196,480,000.00
From information

t~con

off during the examination, it appears

that the acCO'.J?tnncos cover shipments of nearly one hundred different comJnoditios, and that about one

hal~

of those accoptancos, representing ap-

proximately 15% of_ tho dollar total, set out specifically in the instrumont tho commodity covered.

In many other instances an idea as to tho

character of tho transaction financed may be

obt~inod

from firm names,

place uhcro droxm, or other inforr.J.ation appearing on tho bill.
· :•nsos tho shipments arc doscr ibed as "General Horch11n<iisc 11 •
it

I11

a few

HmJCvor,

is estimated that about one fourth of the accc:;?tancos hllld boar no

evidence of the nature of tho goods shipped, beyond the certificate as tc



330

-~

~e

general character of the

transactio~

necessary under the Bo~d's regulations

.

fer_ eligibUity fer JUrchase.
thir4s of the total number of

X-1891

The import bills, which constitute about two
acceptan~es

and one half of the total amount,

Ufru:ally contain full detaUs in regard to shipnents -eovered, includ_ing .a de·- ·
scription of the goods, vessel ~which shipped, and reference to credit estab·
lished:
conc~ing

The export bills give very little specific information

the

shipnents represented, beyond a general statement sueh as "Exports to Japan",
·."Cotton for Export", ''Merchandise for export•, "carpets for Europe", etc.
Aside from the certificate as to the nature of the transaction, necessary for
eligibility; the domestic bills ~requentlJ fail to set out the goods covered.
However, the domestic

bi~ls

are in good form and the drawers are usually well

known provision• grain or .manufacturing concerns, of which the following may be
mentioned as samples: _Great Atlantic

. Go.,

Wil_son & co., Nestles Food

co.,

& Pacific Tea Co., International Grain
Augusta Knitting co,, utica Knitting Co.,

Mexico Hide C_o., Newbu:l"ger Cotton Co., Maxwell Motor Co., Oil Storage Co.,
Barnet Leather Co • , United Sugar Co.; Empire Petroleum Co • , Castle Ki.d Co • ,
Union Wool

eo.,

Premier Worsted Mills, Tungsten Products

eo.

The· folloWing classification as to commodities covered is

,mad~

of

the acceptances bearing definite information as to the character of the transaction
represented:
.

.

.

------·---~--------·------------------------------~·----------~-------~----------Characte:r
of

Acceptance

Silk
cOtton
Hid9'8 & Skins

Packers
Coe~nut

oil

Sugar
Silver
Coffee
Wool

Wheat

Digitized for!_obacco
FRASER



:Number of:
Percent of
Items :total no. items:

700
480
345
380
285
225
150
'150
80
75
'75

9.3
6.0
4.6
5.0
4.0
3.0
2.0
2.0
1.0
1.0
1.0

Percent of total
.Amount :amount acceptances: Remarks

12,162,000
11,130,000
10,461,000
'7,980,000
'7,935,000
5,515,000
4,2()0,000
3,500,000
2,600,000
1.965,000
1,935!000

..

6.2
5.'1
5.3
4.0
4.0
2,8
2.2
1.8
1.3
1.0
1... 0

-Imp. Japan

-etports
Imp.s.Am.
11K,porte
Imp. Orient
Imp.w. Ind.
Exp.Orient
Imp.s.Am.
Exp.Europe
Exp.E!lrop&
Im::.>·

..

331

X-1891

...

Other commodity shipments ·rhich n.re shmm by the datu on the
bills to have been financed by the a.cceptance method a.re n.s follo·.;s:
Copper, crude rubber, pulpwood, gasoline, kerosene, olive oil,
brass, groceries, gold flour, crude oil, hemp ··rn.lnuts, extrn.cts, cocon.,
C[Ullphor, humc.n hn.ir 1 bUIIlbOO mc•.. tti~g, muri~.te 6f potC\Sh, dried C.lbumen,
sn.rdines, diamonds, ivory 1 strn.•'r brc.id, .rice, dog skin m:~ts 1 elm-er.
seed, bristles, rc..isin§, "te:c dust, cur?d herring, n.niseed 01.1, strn.•.;
hc.ts, rut;s, C.'\rpets, _pec.nuts, Jn.pn.n ·.mx, gum dc.m.:.~r, hc..rd··rc.re, srttJ.n,
rn.tt::.n furniture, olives, cign.rs, glue, toys, drm·ring instruments,
sur;ic'al instruments, crockery.
~--

...,

.

-···

,__,...,.

...

!1.-

'"'

..

•

•

At the close of business I''!a.rch 27, 1920, the Federn.l Reserve
Ba.nk of New York held Ba.nkers 1 Accept:1.nces, drmm by the principal. packing
concerns, us follovrs:

------------·------------------·----------------------------------------Drm·;er
Amount
Number of
Distribution of
acceptors
in
in
in
in
in
Barik~ in

11 Bunks
16 Banks
4 Ba.nks
l2.Banks
1 Bunk

Armour &: Co.
~-'rift &: Co.
Eorris &: Co.
Wilson & Co.
Cud~hy & Co.
Tota.l

3M

·-------

ac~pt_~nce s

5 Cities
8 Cities

153
82

2 Cities
6 Cities
l City
12 Cities

.

'

'

~3

25

3,975,000
3;900,000
1,300,000
1,128,100

8

200,000

31l

fl0,503,100

--------~-------~---------------------------·---~---~--·------~--------~-

A few of these bills, a.m.ounting to less than
domestic nccept.ances bec..ring
thi~

bill

of r;oods".

'\TaS

rt

;'soo.,ooo.oo are

certifica.to th:;t "At the time of ucccptc.nce

seeured by shipping documents e.-idencing the domestic shipment

About one third of the n.ccepto.nces referred to in the foregoing

to.bulation o~ po.ckers 1 bills are accepted by No.tionnl banks n.nd there is
no nota;tion thereon to shou the charucter of the transo.ction.

{Under the

Boar9.' s regulations (13-1916) _no evidence of eligibility is required t·rith
respect to a bill a.ccepted by a National bank~)

Forty-four of the bills

carried in the tabulation 1 CJ'llounting to (1 1 100 ,000, were out for collection
and therefore could not be e:x:a.mined.

The remaindel" of the bills conto.in a

certification that ' 1This a.ccepta.nce is bnsed on o. tro.nsuction in\"olving th.e
importation or exportation of goods 11 or what the acceptnnce is "an inherent



••

-'

' ..

332

'

...

-":::-

X-1891

~

part of an export trans:::>..ction and does not require revenue stn.mps 11 •
":3wift" bills refer to

11

under L/C No.- , Date-

Exports 11 an~ the
1

11

The

J-irroour 11 bills sto.te "Dro.~·rn

Covering exportation of Herchandise".

None of

the packers' bills contains any definite statement as to the commodity
coveredr the date, character or destination of the shipment; or the name
of the vessel co.rryin; the ;oods.

On February 28, 1920, the date the

acceptances reached the hi~h nL..'l.rk, :' 231,257 )300.00, the packers' bills
n.mounted to :: 18 >300, 000 • 00 ( 8%) •

On r:ln.rch 27, 1920 1 vri th total acceptances

of ;:196,500 ,000.00, the packers' bills hod been reduced to . 10,500,000.00

(5 .3%).
A statement sho">ring the distribution n.mong; banks and bankers of
the acceptances on hand is attached to this memorandum.

GENERAL COMl'lliNT
The accept::'..nces held by the Federal Reserve Br:mk of Ner; York at
the close of business Ho.rch 27, 1920,

~·rere

found to be in sood condition.

Regulations and technical requirements are carefully observed, and detailed
information in connection '·rith the vrork is readily o.vailc..ble.
The examination of the 7,500 bankers' acceptances held by the
Ne':.r York Bank stronr;ly sugr;ests the desirability of a standard size for

accepto.nce forms, say 9 11 x
check form, and uniform
acceptance.

sli~htly

t..,n,

arro.nr~ement

of printed matter on the face of the

It is also believed th:"'..t

tpe consideration of acceptances to

larp:er thn.n the ordinary note or

it ..rould

ha~e

be of sreo.t advanto{~e in

included in the bill a definite

statement as to the coiDQodity covered, and in addition for
r

export bills, the details of shipment.




L~port

and

.

.

X-1891 a .

...

BJINKERS' ACCE"PT.ANCES 'PURCHASED
HELD BY FEDERJ!L RESERVE B.ANK OF NEW YOBK,
27, 1920 ..

AT CLOSE OF BUSINESS MARCH

NEW YORK DISTRICT

NATIONAL 3ANKS
.American Exchange National Bam:
.Atlantic National Bank
Bank of New York, N~ B~.A.
Battery Park National Bank
Chase National Bank
Chatham & Phoenix National Bam~
Chamical National Batik
Citizens National Bank
Coal & Iron National Bank
East River National Bank
First National Bank
Harriman Nati anal Bank
Imuorters & Traders National Batik
Irving National Bank
Li~erty National Bank
Mech. & Metals National Banl:
Merchants Nati •Jnal Bank
National Bank of Comnerce
National City Bank
National Park Bank
Seaboard National Bank
Union Exchange National Bank
Garfield National Barik

$1,289,000
377,000
1, 554,000
83,000
2,384, 000
305,000
1,082,000
127,000
91,000
2,000
300,000
50,000
2,784,000
1,659,000
780,0':)0
617,000
10,119,000
9,251,000
518,000
302,000
10,000
295,000

TRUST COMPANIES
Bankers Trust Co~
Central Union Trust Co
Colum~ia Trust Co
Equitable Trust Co
Farmers' Loan & Trust Co
Franklin Trust Co
Guaranty Trust Co.
Irving Trust Co.
Italian Discount & Trust Co
Lawyers Title & Trust Co
Mercantile Trust Co
Ne1v York Trust Co
Scandinavian Trust Co
U.S. Mortgage & Trust Co




$ 2,242,000

2,sse,ooo

1,161, 000
5, 705,000
3,032,000
277,000
5,673,000
376,000
53,000
485,000
334,000

333

.

.

.
..2 ...

X-1891 a

ftmerican Forei~n Banking Corporation
Asia Banking Corporation
Bank of America
Bank of Manhattan Oo.
Baxll.:: of United States
Corn Exchange Bank
Columbia Bank
Foreign Credit Corpo~ation
Foreign Trade Bariking Corp~
French American B'anking Corp.
Grace & .Qo., m.R. Bank
lnternati onal Banking Corp.
Mercantile Bank of the Americas
New Netherland Bank ·
'
New York Produce Ex change Bank
Pacific Bank
Park Union Foreign Banking Corp.
The State Bank
Textile Bam,ing Co

6. t 301 ' 000

2,408.000
286,000
2, 284,000'
282, OQO.
169,000
lliOOO

3.·368,000
1,005~000

1,990,000
46,000
3-419,000
6j521:,000
90,000
2.000
315,000
3,0341000
57,000
919,000

PRIV ~, TB BANKERS

.American Express Co¥
Brown Brothers & Co.
Goldman, Sachs & Co9
Hallgarten & Co
Heidel~ach,

705,000
9,121,000
6,195,000

l & Co.

Huth & Co
.-.Kuhn, Loe':l & Co
Ladenburg, Thalw..an & Co

2,760,000
155,000
950,000
230,000
1,089~000

Lazard Freres
Maitland Conpell &.Co

J.?. Morgan & Go
~oe & Co, John
Na\¥Iiburg & Co. , E. ' '
Schall & Co., Wm
SchUlz & Ruckgaber
Seli!IDlan & Co., J & w
Sutro Bros. & Co
A~ Iselin & Co

·370, 000
920,000
54,000
1,142,000
1,358,000
85,000
50,000
100,000
100,000

FOREIGN AGENCIES

An7lo South American Barik
Banca Comtle Italiana
Baru~ of British West Africa
Banl:: of Montreal
Bank of Nova Scotia
Batik of Taiwan
Canadian Bank of Ccmmerce



1~632~000

1,199,000
178,000
246,000
12,000
90,000
}, 938,000

334

..
-3-

Dominion Bank
London & Bra~ilian Bank
National Banl:- of S•1u.th Africa
Royal Bank of Canada
Standard Banb: of South Africa
U;1.:i.on Bank of Canada
Me::chants Bank of Canada

X-l89J. a

$

58,000
86,000
. 1,555,000
4,561,020
331,000
1,578,000
10,000

BROOKLYN

42,000
25,000

Brooklyn Trust Co
Pe~les Trust Co

NEW JERSEY

First National Banl-, Hoboken
Hamilton Trust Co. Paterson
Paterson National B~~. Paterson
First National Bank, Jersey City
Nat. Newark & Essex Bkg Co.· Netvark

74,000
141 '000
4,000
33,000
200,0JO

NEW YORK STATE

Buffalo,Banlr of Buffalo
"
Citizens Com 1 1. Tr. Co.
11
Fidelity Trust Co
"
Liberty Bank
#
Manufs, & Traders Natl •. Bk.
"
Marine Trust Co
Gen3seo,Livin!ston City Trust Co.
· Kingston,Rondout National Bank
Syracuse,First Trust & Denosit Co,
"
Salt Springs National Bank




25,000
350,000
1'00,000
78,000

6oo,ooo

618,000
9,000
10.3,000
75,000
25,000

335

•

'(I

•

336
X-1891 a

•

FOREIGN TRADE ACCEPTORS

_,......,.......,....,....==..,.....-~-

Ind., Chartered Batik of I., A & C
B. Altman & Co
Balfour, Williamson & C~
Cheney Brothers
H.W~ Peabody & Co

$ 39

1

000

129,000
51; 000
295;000

Ind~ 1 Hong, & Shang. Banking Corp.
Cheney Brothers
W.R. Grace & Co
H. w·. Peabody & C~

97,000
70,000
103,000

Ind. , Nonmember Banks
G, Amsinck & Co
Balfour, Williamson & Ce
w. R. Grace & Cc
V, Guerin & Fils
Hadden & Co ..
H. w. Peabody & Co
F. Vietor & Achelis

156,000
1.42, ooo
443,000
10.000
37,000
274,000
90,000

Ind., MemiJer Banl-(s
G. Amsinck & Co

Armour & Co
Balfour, Williamson
Cheney Br':lthers
W.R. Grace & Co

&

Co

New York State
Albany, N.Y. State National Bank
Utica, Citizens Trust Co.
n
First National Batik
11
Oneida City Trust Co.

n

Utica Trust & Safe Deposit Co

Total Foreign Trade Acceptances

109,000
79,000
71,000
518,000
153 J 000

25,000
100,000
472,000
50,000
871000
$2,866,000

DOMESTIC TRADE ACCEFTJI.NCES

United Cigar Stores Co.




268,000

~

•·
X-1891-a

-5ATLANTA DISTRICT.
New Or lean~, Canal-Comtl, Nat. Bank
II
II
Canal-Com 11. Tr. & Sav .. Eank
Bibernia
E~ & Trust eo.
"It
"II
Marine Iank & Trust Co.
Whitney Cen. Nat. Bank .
"
"
.Atlenta,
.Atlenta National Bank
Centrel Bank & Trust Co.
"
II
Lowry National Bank
.Augusta,
Merchants Natiopel :Eank
~OSTON

$20,000

126,ouo
g6S,ooo
25,000
335,000
. 202~000

1oo.ooo

90, 000
9·,000

DISTRICT.

.American Trust Co.
Federal Tn:~t co ..
First National Bank
First National Corp..
Fourth .Atlantic Nat),.onal Bank
International Trust Co~
Lee, -Higgi~son.& 9o.
Merchants National Eank
Moors & .co., J .. B•.
National Shawmut lank
Old Colony Trust. Co ..
Second National Bank .
Shawmut Corporation
State Street Trust Co.
Webster &. .Atlas ~tional Bank
Blackstone Canal Nat~ Bank, Provide~ce, R.I.
Hospital Trust Co.,
n
·Thames National Fank. Norwich, Conn.
First National Bank, New Haven, Conn.
Springfield Nat. lank, Spring(ield, Mass.
Massoit Pocasset Nat. Bank, Fall River, Mass.

250,.000
113,000
4; 525 ,ooo
l:r624,ooo
121,000
97,000
1, 601,000
170~000

47 ,ooo
4,384'1"000
3,961,000

9.ooo

1,863~000

369,000
330,000
72,000
350,000
233,000
23,000
100,000
53,000

CHICAGO D,ISTRI.£!
Central Trust Co. of· Illinois
C- & C. Natione.l lank
Corn Exchange National Bank
First National 1Jank
Harris Trust & Savings B~
Illinois Trust & Savings Bank
Merchants ~Loan. & Trust Co.
National Bank of the Republic
utfion Trust Co4
First Trust & Savings Bank
National C:\ ty l-ank
Detroit, F:i.rst & Old Detroit Nat ... :Bank
n
National Bank of Commerce
n
peoples State B~



4,000
1,003,000

316.,ooo

197,000
100)000
125,000
14,ooo
901000
~oo,ooo

325)000
119,000
250,000
100,000
331,000

337

x-1891-a

-6CHICAGO DISTRICT (CONTINUED)
IndiMo.:polis, Fletcher

~1\rn.

Uat. Bo.nlc

llihmu.l;:oc, First Hisconsin National Ba.nlc
II

Second \lard Savings Banlc

253,000
75,000
175,000

CI.JWELAND DISTRICT.
Contrn.l Hat ioncl Bo.nlc
Citizens Savings & Trust Co.
Cleveland Trust Co.
F:irst National Bani~
First Trust & Savi:q;s Bo.nlc
Guardian Savings & Trust Co.
Superior Savings & Trust Co.
Union Corrm1orcc Nati oncl Banlt
Cincinnati, CitizGns Ho.tional Banlr
11
Fi£th-Third National BD.lllc
Pittsburgh, Banlc or Pittsburgh~ N. -A.
"
First National Bank
II
Pittsburgh Trust Co.
II
Farmors Do?osits Nat. Banlc
II
Peoples National Bnnlc
II
Union Trust Coo ·
Akron, Ohio, Ohio Savings & Trust Coo
II
II
F.irst Second National Bo.nlc
11
Toledo,
Nc.tioncl .Bank or Commerce

95,000
49,000
873,000
125,000
30,000
1,096,000
325,000
1,158,000
221,000
. 322,000
359,000
176,000
50,000
144,000
137,000
250,000
50,000
104,000
135,000

DALLAS DISTRICT
City Ua tiono.l Bo.:nlc
El Paso, Tex. First No.tionc.'"'l.l .Bo.nlc·
Tc:x:arl{D.no.,. State National Banlc
Houston, First Hat ional .Bank

183,000
100,000
575,000

MINNEAPOLIS DISTRICT
First No.tiono.l .Bank
!.Iidlo.nd Nn.tional Banlc
Northvmstorn Nationc.l .Banlr
St. Paul First Nafiona1 Bo.:nlc
"
" llorchD.nts National BCJ:lk
l.Iinnoc.polis, 11ctropolitan National Banlc
PHILADELPHL~

Corn Exchange National Bank
Commercial Trust Co.
First National Banlc
Fourth Stroot National Banlc
Girard National Bank
Girard Trust Co.
llarltct Stroot Nationcl Bank



600,000
407,000
845,000
56,000
248,000.
70,000

DISTRICT

703,000
200,000
480,000
137,000
1,470,000
150,000
. 392,000

3 v~-8

339

-1PHILADELPHIA DISTRICT (.CONT.)

Philadelphia National Batik
Tradesmen 1s National Bank
Union National Bank
Franklin National Bank
· 1\nthracite Trust Company, Scranton, Pa.
Bosak State :Bank,
n
n
Peoples Savings & Dime Bank, ~
n

2; 629,000
494,000
99,.000
100,000
25,000
25,000
25,000

RICHMOND DISTRICT

r

American National Batik
33~,000
Merchants National Bank
54,000
National State & City Bank
292,000
Baltimore, Me·rch. & Mach. First Nat.Bank 1,000,000
"
National Exchange Bank
267,000
167,000
"
Second National Bank.
"
National Bank of COJl'JJre rce
50,000
"
Continental Trvst Co.
550,000
Citizens National Bank
"
250,000
rr
Union Trust Co.
47.000
"
Farm~rs & Merchants Nat.Bank
25,000
11
National Union Bank
25,000
Washington, D.c. Commercial National Bank
1121,000
100,000
"
Continental Trust Co.
"
District National Baak
50,000
"
National Metropolitan Bank 75,000
KANSAS CITY DISTRICT
Fidelity National Batik & Trust Co.
National Bank of Com:rerce

25,000
25,000

ST. LOUIS DISTRICT
Mercantile Trust Co.
Mississippi Va!ley Trust Co.
National Bank of Comrr.erce
Louisville, ~. National Bank of Kantuc~
Memphis, thion & Planters Bank & Trust Co.

309,000
174,000
258,000
50,000
385,000

SAN FRANCISCO DISTRICT
Anglo & Landon Paris National Bank
:Bank of California, N.. A.
Wells Fargo Nevada National ~



1,595,000
351,000
390,00$)

...

.

340
S.AN FRANCISCO DIS~RICT f, CONT.}

First National Bank, :Los Angel-es, Cal.
First National Bank, Berkeley, cal.
U. S.. National Bank~ "?ortlani, Ore.
First National Bank: Seattle: Was~.
R~rchase agreeme~~ ·
Betnbard. Scholle & 9o~

(

8, 625,000

·solomon Bros, & Hutzle~

.

!

'




75,000

49g,ooo

!Discount Corp ... of N.Y.

•

100,000

1:718,000

·13oad. & C'TOoJ.win

'

8t000
2§,000

175,000