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FOURTH ANNUAL REPORT OF THE FEDERAL RESERVE BANK OF BOSTON FOR THE YEAR ENDED DECEMBER 31, 1918 WASHINGTON GOVERNMENT PRINTING OFFICE 1919 FOURTH ANNUAL REPORT OF THE FEDERAL RESERVE BANK OF BOSTON FOR THE YEAR ENDED DECEMBER 31, 1918 WASHINGTON GOVERNMENT PRINTING OFFICE 1919 LETTER OF T R A N S M IT T A L . F ederal R eserve Bank, Boston , Mass., January 15, 1919. S i r : I have the honor to subm it herewith the fourth annual report of the Federal R eserve B ank o f B oston covering the operations o f that bank for the period from January 1, 1918, to D ecem ber 31, 1918. R esp e<*tf u lly, yo urs, F r e d e r ic H. C u r tis s , Chairman and Federal Reserve Agent. H on. \V. P. G. H a r d i n g , , Governort Federal ReseiTe Board Washington, U. C. TA B L E OF C O N T E N T S . Page. Officers and directors of the bank................................................................................ Introduction............................................................................................... .................... Financial results of operation........................................................................................ General business and banking conditions.................................................................. Discount operations...................................................... . . . ................... - ....................... Trade acceptances..................................... ..................................................................... Bankers’ acceptances..................................................... . .............................................. United States securities............................................ ................................................... Reserve position..............................................................................- .............................. Movement of membership............................................................................................ Relations with national-bank members............................................................ Relations with State banks and trust companies...................................................... Credit department and bank examinations................................................................ Deposits............................................................................................................................. Periodic reports regarding member banks............................................................. Certificates of indebtedness and Government deposits............................................ Flotation of Liberty loans. ............................................................................................ War saving certificates.................................................................................................... Capital Issues Committee.............................................................................................. War Finance Corporation......................................................... ......... ............... .......... Federal Reserve note issues.......................................................................................... Federal Reserve bank notes.......................................................................................... Position of commercial banks as result of war financing......................................... Policy to be pursued in restoring the liquidity of banks......................................... Internal organization....................................................................................................... Clearing and collection................................................................................................... Gold settlement fund...................................................................................................... Banking quarters............................................................................................................. Conclusion......................................................................................................................... 5 7 7. 8 8, 9 9. 10 10 10. 11 11, 12 12 12. 13 13 13. 14 14 14. 15 15 15. IB 16 17 17. IS 18 IS 18 IS, 19 19 19, 20 20. 21 21 21. 22 22. 23. KXIILBITS. A. Movement of earning assets during year........................ ....................................... B. Movement of cash reserves, net deposits, etc., during year............................. 23. 24 25. 2t> SCHEDU LES. 1. 2. 3. 4. 5. ti. 7. 8. Income and expense................................................................................................. Distribution of net earnings.................................................................................... Comparative balance sheet. December 31. 1917. and December 31. 1918 . . Items from schedules in connection with fiscal operations.............................. Transactions with other Federal Reserve Banks............ ......................... . Maturities of invested funds on last day of each month................................... Maturities of commercial paper and trade acceptances.................................... Acceptance liability of national banks in New England.................................. 3 27 27 27. 28 28 29 29 29 32 4 t a b u : of c o x t k x t s . Page. 1i. A ccep ta n ce.............................................................................................................. ...... 32 IU. Itanks granted |»ertiiissiou to accept up to 1(H) per cent................................... ...... 34 11. Reserve |n»-iti«in ou Itr^t of each month..................................................................... 34 12. Monthly o)N*ratioti.< of gold settlement fund....................................................... ...... 38 13. N«»w national hanks taking stock in Federal Reserve Bank.................................. 38 I I. M««mU»r State hanks................................................................................................ ...... 38 V*. Meml>er trust companies compared with total trust companies...................... ...... 39 h*. Banks granted fiduciary powers under section 11 »k).............................................. 39 17. Hanks granted fiduciary powers under a c tio n 11 ^k> as amended........................ 39 IS. Amounts due to mettt1>er hanks and rediscounts lor member hanks.................... 40 Hi. H. •«*«♦**v«»s ot* national hanks in New Kngland...................................................... ...... 40 20. « «ittdifii»ti ot* national hanks in New England.................................................... ...... 40 21. < onipari^on »>f items reported hy memU*r hanks..................................................... 40 22. < «*itihcates ot indebtedness sales and payments................................................ .......41 23. Distribution, hv issues. of certificates of indebtedness sold.............................41,42 24. R« i w»rt of payments hy credit and withdrawals since January 1, 1918......... .......42 25. Redepo^its of internal revenue funds................................................................... .......42 2#. Subscriptions to Liberty loan Itonds............................................................................45 27. Liberty loan subscription* through Federal Reserve Bank of Boston........... .......45 2S. Th<» Ijb ortv loan*............................................................................................................45 29. Liberty loan subscription-* of principal cities of New England....................... .......46 30. Character of Liberty loan payments..................................................................... .......46 31. Transaction* du rin; the f.uirth Liberty loan payments.................................... .......47 32. 1a \*erty 1*tan c. *nversi. »n<......................................................................................... .......47 33. B*»nl anil cert iiicate deliveries.............................................................................. 47-48 34. I'nited States certificates of indebtedness redeemed......................................... .......48 35. War giving* stamps issued during year 1918....................................................... .......48 3<>. Capital Issues < ommittee...............................................................................................49 37. Federal Reserve n >tes issued by Federal Reserve Agent................................ .......49 38. Number of Federal Reserve n »U*s issued and retired....................................... .......49 39. Interdistrict Federal Reserve n »te movement................................................... .......50 40. Principal items from statement of selected hanks............................................ .......50 41. Amount of checks handled hy transit department............................................50-51 42. Colhireral department—<*oup;*ns out..................................................................... .......51 43. Discount rates...................................................................................................................51 44. Money rates in Boston. 1918................................................................................... 51-52 45. Bank clearing in New England............................................................................ .......52 46. Building activity in New England....................................................................... .......52 47. Business through the port of Boston..................................................................... .......53 48. Commercial failures in New England................................................................... .......53 CHARTS. A. Movement of earning assets during calendar year......................................................24 B. Deposit and note liabilities, also cash reserves...........................................................26 C. Total earning assets at d ose of business each Friday.................................................30 D. Bills rediscounted and member hanks collateral notes h e ld ...................................31 E. Acceptances held at close of business each Friday............................................. .......33 F. Percentage of reserve against combined deposit and note liability........................35 G. Gold reserve at close of business each F rid a y .................................................... .......36 H. Reserve ac<v>unt of member hanks........................................................................ .......37 I. Due from dep'uritaries of public money.........................................................................43 J. Due to Treasurer of the United States...........................................................................44 FEDERAL RESERVE B A N K OF B O ST O N . D ire c to r*. Hast Walpole. Mass. Boston. Mass. F r e d e r i c IT. C nm ss, Chairman, Bos ton, Mass. T h o m a s W. F a r .v l m. S o w Haven. Conn. A l l e n H o l l i s , Deputy ( liainnan. Con cord, X. II. P h i lip R. A lle n . T h o m a s P. H e a l. E d w ard Jesse II. Edm und C h a r le s S. Rumfurd. Mo. Providence. R. I. R. M o r s e , rroctor. Yt. G. W ash b u rn . Worcester. R ew ard. M e tc a lf. Mass. A rth u r H. W eed, Secretary. Ojficcrs. Governor. I F r e d e r i c II. C u r t i s s . Federal Reserve Jr., Deputy Gov- j Agent. ernor. j R u s s e l l B. S p e a r , Assistant Federal C h e s t e r C. B u l l e n , Deputy Governor j Reserve Agent. and Cashier. j H a r r y A. S a u n d e r s , Assistant Cashier. F r a n k W . C h a s e . Assistant Cashier. ! L. W a l l a c e S w e e t s e r , Assistant Cashier. W i l l i a m X. K e n y o n , Assistant Cashier. ! W i l l i a m W i l l e t t , Assistant Cashier. E r n e s t M . L e a v i t t , Assistant Cashier. |H a r r y F . C u r r i e r , Auditor. C h a r le s A. M orss, C h a r le s E . S p en cer. FOURTH ANNUAL REPORT OF THE FEDERAL RESERVE BANK OF BOSTON. INTRODUCTION. The past year, the second of the Nation’s participation in the war, has produced marked changes in the character of the industrial and financial activities of the New England district. As the year progressed the increasing demands of the Government for carrying on the war have by degrees taken precedence over those for civilian purposes, so that on November 11, at the time of the signing of the armistice, the energies and resources of this community were largely directed and subservient to the successful prosecution of the war. During the year there have been placed in New England, through the banks of the district, over $1,000,000,000 of Government securi ties—Treasury certificates, Liberty loans, and war-savings certifi cates, besides over $300,000,000 of Federal taxes collected. These loans and taxes have been financed where necessary through redis counts with the Federal Reserve Bank of Boston. That these sums have been raised without undue financial disturbance, and that the loaning rates for money have been kept steady and not unduly high is an indication of the satisfactory operations of the Federal Reserve Bank and the Federal Reserve system. Schedule 4 shows the fiscal operations of the Government during the year. FINANCIAL RESULTS OF OPERATION. The increased demands by member banks for rediscounts and loans to finance Government needs have brought large earnings to the Fed eral Reserve Bank. The net earnings for the year 1918 distributable, after making allowance for depreciation, amounted to $3,305,000. Dividends at the rate of 6 per cent per annum were declared on June 6, 1918, and December 5, 1918, payable to stockholding banks as of June 30, 1918, and December 31, 1918. These dividends amounted in the aggregate to $384,000. Of the surplus earnings one-half, or $1,460,500, was carried to the bank’s surplus ac count, and an equal amount was set aside as a reserve for the payment of the franchise tax to the United States Government as required bv the Federal Reserve Act. 7 8 A X X l ’AE REPORT OP FEDERAL R ESERVE BANK OF B O S T fV X . Sche<Jules 1 and - show earnings in detail as com pared with the year 11117. Schedule 3 shows a com parative statement of the condition of the hank on Decem ber 31, 1917, and December 31, 1018. The im portant changes in tin1 balance sheet will be referred to under the proper headings in this report, the increase in most of the items clearly indi cating the enlarged activities of the bank. OEXERAE R l 'S I N E S S AXD B A X K IN O C O M M T IO X S IX THE D IS T R IC T . As the year 19IN advanced the pressure of the G overnm ent to meet war demands became increasingly heavy. B oth business men and bankers were urged to give preference to industries essential to the prosecution of the war and to Governm ent and other essential securities, and eventually the Governm ent needs becam e so great that Federal control was necessary. E arly in January the Capital Issues Com m ittee assumed jurisdiction over the issue of new securi ties, and later, through the W ar Industries Board and other boards, labor and material were conserved for the G overn m en t’s use. A lthough Governm ent regulations, price fixing, and constant de mands for m oney have brought unusual burdens, banks and m er chants have, with but few exceptions, m ade unprecedented profits. The com petition for labor, skilled and unskilled, lias also proved a serious problem and has forced wages to a plane hitherto unknown. Unrest and inefficiency of labor have been pronounced during this period, em ployees leaving one industry to go to another offering higher pay and refusing to remain steadily em ployed. M oney rates, during the year, both time and dem and, for com m er cial needs, have remained practically steady at 6 per cent, being influenced by the rates charged by the Federal R eserve Bank. R ates on loans secured by G overnm ent bonds varied from 4J per cent to 5 per cent, being similarly influenced. Im m ediately after the armistice, the G overnm ent began canceling m any of its war contracts, and the m anufacturer was brought face to face with the readjustm ent of his business to a peace basis. Peace, however, found dom estic business quite generally in a satisfactory state, low inventories being prevalent with the m anufacturer, whole saler, and retailer. The large amount of raw material held b y the Governm ent, the uncertainty o f the future trend of dem and for raw material from foreign countries, together with the prevailing high prices both for labor and material, have resulted in a considerable slowing dow n of industrial activities, and are causing business to await future developm ents before going ahead. The demand of the G overnm ent for m oney to settle its con tracts and to support the large A rm y still in cam ps in this cou n try and ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. 9 overseas is so great that the hanks are being called upon continuously to subscribe to war loans and have been increasing their dem ands for rediscounts with the Federal Reserve Bank. It is expected that after the first of the year 1919, with the accu m ulation o f investm ent m oney, the banks of the district will have m ore m on ey to lend, but unless there should be a h eavy recession in general business not looked for at the present time rates are n ot e x pected to be m aterially lower until after the next L iberty loan. D IS C O U N T O P E R A T IO N S . The bulk of loan operations of the Federal R eserve Bank of B oston during the year 1918 was made up of borrow ings on account of G overnm ent financing. As will be seen from the appended schedules, borrow ings for com m ercial purposes have been com paratively small. B oston banks have becom e accustom ed to borrow' large am ounts on notes secured by Governm ent obligations for short periods, usually one day, whenever their reserve iequirem ents necessitated tem porary replenishing. The total loans of the Federal R eserve B an k at the end o f 1917, including notes and acceptances rediscounted with other Federal R eserve Banks or sold with this b a n k ’s indorsem ent, am ounted to about .SI 20,000,000. On February 12,1918, this loan account had been reduced to about $62,000,000, and although later tem porarily in creased , further liquidation b y m em ber banks brought the loan accou n t dow n on M ay 16 to about $58,000,000, which was the lowTpoin t o f the year. D u ing the next few weeks the Federal R eserve B ank redis cou n ted for other Federal Reserve Banks, bu t these rediscounts never at one time exceeded §10,000,000. From M ay 16 to the end of the year there was a steady increase in the bank's loans, a material expansion being show n betw een June 27 and July 11, when 8148,000,000 of redeposits in con n ection w ith the Federal taxes were withdrawn from m em ber banks. A lth ou gh the high point reached at that period was som ewhat reduced, from August 17 there was a steady increase in the b an k ’s loan accou n t, owing to the withdraw al of Governm ent funds deposited in con n ection w ith the Liberty loan, reaching 8157,000,000 on N ovem ber 1, when redis counts w^ere resorted to with other Federal R eserve Banks, From that time to the end of the A'ear this bank, in order to m aintain its reserve more nearly on a p arity w ith that o f the Federal R eserve system , was obliged from time to time to rediscount m em ber bank loans, or sell acceptances to other Federal R eserve Banks. Schedule 5 shows rediscounts with other Federal R eserve Banks. The demands for accom m odation from m em ber banks, because of G overnm ent withdrawals, were very large during this period, the loans increasing to §165,000,000 on N ovem ber 12, and to 8168,000,000 116016— 19------2 10 AXX U AL REPORT OF FEDERAL RESERVE BAXK OF BOSTOX. on N ovem ber 28. The latter was the highest point reached during the year. It is estim ated that if there had not been recourse to other Federal Reserve Banks the loans w ould have reached a high point of 8232,000,000 on D ecem ber 13. Schedules 6 and 7 and accom panying charts contain detailed figures coverin g all fluctuations. TRADE ACCEPTAN CES. Very satisfactory progress has been made during the past year in the use of trade acceptances b y the merchants in the New England district. W hile it is difficult to procure accurate inform ation as to the char acter of this developm ent, the records of the Federal Reserve Bank show a large increase in the number and volum e o f trade acceptances that have been offered for rediscount b y the m em ber banks of the district. Trade acceptances have for the m ost part been received for rediscount from the out-of-tow n banks, the large B oston banks as a rule n ot being inclined to encourage their use. On the other hand, there has been a considerable increase in the different lines of trade which have found this character of financing attractive. The bank has, as in the past, m aintained a differential rate in favor of the trade acceptance as com pared with the ordinary com m ercial bill. b a n k e r s ’ a c c e p ta xc e s. The past year has shown a marked grow th, b oth in num ber and volum e, of bankers' acceptances created b y banks in this district. W hile it is not practicable to show the increase in volum e of accept ances created b y all the banks in the district, the increase in those of national banks is shown b y Schedule S. Fully as im portant, however, is the satisfactory progress that has been m ade in creating a broader market, not only fo r the acceptances originating in this district, bu t also for those created b y banks else where in the country. To encourage this distribution, during the past year, the Federal R eserve Bank has m aintained differential rates betw een indorsed and unindorsed bills and has discouraged the direct offering of bills b y the accepting banks, taking such acceptances only as rediscounts and at the discount rate ruling for other com m er cial paper, while at the same time holding itself open to purchase the same bills at current rates, even though unindorsed, from brokers and other banks than the accepting banks. A differential has also been m aintained by the Federal R eserve B ank betw een indorsed and unindorsed bills, and on bills o f varying m aturities, encouraging the offering of sh oit-tim e bills to the Federal R eserve Bank. ANNUAL REPORT OF FEDERAL RESERVE I1AXK OF BOSTON. 11 To encourage brokers to handle acceptances, the Federal Reserve B ank has m ade advances to them on acceptances with agreements to repurchase. These advances have been m ade on favorable terms, and this practice has also been adopted b y several of the larger B oston banks. This policy has tended to distribute acceptances m ore freely, not only into the portfolios of large city banks, but also to ou t-oftown banks, both com m ercial and savings. The Massachusetts sav ings banks have taken advantage of the law passed last M ay which allows such investm ents. Frequent conferences with officials of accepting banks have not only brought about a more satisfactory character of acceptance but have also been a benefit in developing a policy which has m aterially broad ened their market . It would appear desirable to have a p olicy adopted b y Federal R eserve Banks with reference to bankers' acceptances, so that on the date of paym ent the proceeds would be available as reserve funds by the holding bank. During the year the number of accepting national banks has increased from 32 to 40 and, as will be seen by Schedule 10. six addi tional banks have been given the special privilege o f accepting up to 100 per cent of their capital and surplus. U N IT E D STATES S E C U R IT IE S . The holdings of U nited States securities have show n several changes during the year. E arly in the year m em ber banks, h aving purchased certificates of indebtedness and wishing to obtain funds for short periods, sold small am ounts to this bank w ith their agree ment to repurchase, but after a few m onths the practice was dis continued. In con n ection with the handling o f subscriptions to the first L iberty loan, there was allotted to this bank §2.600,000 of 3^ per cent bonds in excess of the subscriptions received. On June 29, 1918, on v o te of the directors of the bank, these were taken over from the Treasury D epartm ent and paid for. On July 8, ?2 ,000,000 were sold to the W ar Finance C orporation. D uring the balance o f the year, several sales were m ade until the bank had disposed o f its entire holdings. Several small am ounts of L ib erty loan bonds of different issues were taken over by the bank from one source or another, until at the end of the year our holdings, exclusive o f b on d s sold on the installm ent plan, am ounted to a bou t $S,000. There were also $529,000 conversion 3s rem aining unsold from the con version of 2 per cent bonds into 3 per cent bonds and one-year notes. It has been the p olicy of the G overnm ent during the current year to p ay its one-year notes on m aturity instead of renewing, as it is 12 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. privileged to do. O f the S I,416,000 U nited States notes held at the close of last year, 8750,000 matured O ctober 1, 1918, and were paid. As these had been pledged to secure Federal R eserve bank notes, a like am ount of one-year 2 per cent certificates of indebtedness was purchased and pledged in their place. In addition there have been purchased §6,000,000 2 per cent certificates of indebtedness to be pledged against Federal R eserve bank note circulation, m aking the total am ount of notes and certificates so pledged at the end o f the year $7,416,000. During Decem ber, anticipating withdrawals from G overnm ent depositaries, the Treasurer of the U nited States on several occasions sold to the Federal R eserve B ank one and two d ay 2 per cent cer tificates of indebtedness, the proceeds being credited to his account. The largest am ount held at any one tim e was $18,000,000, the total so purchased being 567,000,000. RESERVE P O S IT IO N . Enlargem ent of the ban k ’s activities has had the effect o f causing marked fluctuations in its reserve position, as shown b y Schedule 11 and accom panying charts. The amount of gold held b y the bank has varied w idely but with a decided upward tendency. Banks in this district, both m em ber and nonm em ber, have turned over their gold freely to the B oston Federal Reserve Bank, taking Federal Reserve notes in exchange. Several conflicting factors account prom inently for the reserve fluctuations: First, the increase in gold holdings m entioned a b ove; second, the large increase in required reserves due to larger net deposits and increased note issues; third, the h eavy rediscounts b y member banks follow ing G overnm ent withdrawals of funds on deposit with m em ber and nonm em ber banks: fourth , the placing of call loans in New Y ork C ity by banks holding large G overnm ent deposits and the consequent tem porary losses b y this bank of gold, through the settlement fund. From the end of August until the close of the year there was a dow nw ard tendency in the reserve position of the bank, due to the expansion of the bank's loan account and to the increase in Federal Reserve notes outstanding. The form er con dition was brought abou t through large transfers by the G overnm ent to other Federal R eserve districts to meet its heavy paym ents, causing a loss of gold, and the latter was caused by increased need for circulation, requiring larger gold reserves. MOVEM ENT OF M E M B E R S H IP . The m ovem ent to convert national banks into nonm em ber trust com panies, so prevalent in this district in the early days o f the A X X U A L REPORT OF FEDERAL RESERVE BANK OF BOSTON. 13 Federal Reserve system, has entirely abated and several of the banks which gave up national bank charters to operate under State laws have made application and been adm itted to m em bership in the Federal Reserve Bank of Boston during the year. The on ly bank to surrender its entire holdings o f Federal R eserve B ank stock was the Y ale N ational Bank, of New H aven, which consolidated with the First N ational Bank of New H aven. Three new national banks have com m enced business and 18 trust com panies have been adm itted to m em bership, m aking a net increase in members of 20. The total number o f m em ber banks at the end of 191S was 423, h olding 133,835 shares o f stock, com pared with 403 banks, holding 117,169 shares at the end o f 1917. R E L A T IO N S W IT H N A T I O X A I -B A N K M EM BERS. Continued progress has been made during the past year in d evelop ing a closer relationship between the Federal Reserve Bank and its members. The payment- by the Federal R eserve Bank of shipping charges on currency, assumption of the cost of telegrams, and free collections of checks and other items have been appreciated b y all m em ber banks. In order to maintain closer relations w ith those banks located in Verm ont and New Hampshire, E. A. D avis, cashier of the N ational W hite R iver Bank, of Bethel, Y t., was procured to act as the repre sentative of this bank in that section and to instruct the b an k ’s m em bers regarding the various facilities available for their use. The fullest cooperation in the m atter o f placing L iberty loans and certificates o f indebtedness lias been secured both from members and nonm em bers, and m em ber banks have not hesitated to seek rediscounts when their needs dem anded. Applications for fiduciary powers were received from numerous national banks during the first part of the year, and with the am end ments o f the Federal Reserve A ct in Septem ber, allowing an increased scope, m any banks which had form erly been granted the limited powers allowed, applied for the additional powers now available. Schedules 16 and 17 show the banks given these special powers. R E L A T IO N S W IT H STATE BANKS A N I) TRU ST C O M P A N IE S . As in the case of the national banks, the activities o f this bank as fiscal agent have brought it into closer touch with the trust com panies during the year. The larger banks have been favorab ly inclined toward the system and m any have made application and been adm itted to m em bership. During the year 18 trust com panies becam e members, m aking over 65 per cent of the resources of eligible trust com panies represented in the system . 14 ANXL’ AL REPORT OF FEDERAL RESERVE BAX K OF HOST OX. Several reasons can be ascribed for the failure of others to becom e members, the principal ones being (1) The banking laws of several of the New England States are not such as to encourage mem bership in the reserve system ; (2) the character of the business of m any trust com panies is m ore nearly that of savings banks than com m ercial banks, and as such m embership is not particularly attractive either from the viewpoint of the bank or of the Federal Reserve system ; (3) Som e banks are waiting for neighboring banks to m ove first; (4) M any of the smaller banks have not as yet given the m atter sufficient stu dy to realize the possibilities to themselves as members. L iberty loan operations have caused m any nonm em bers to borrow from the Federal Reserve B ank through mem bers, and this has resulted in bringing them to appreciate m ore fully the services ren dered b y this bank to the com m unity. During the last few m onths m uch interest has been m anifested in membership b y m edium -sized and small trust com panies, and several applications have been received. Schedule 14 shows all m em ber trust com panies. C R E D IT DEPARTM ENT AND BANK E X A M IN A T IO N S . The credit departm ent, in so far as it pertains to com m ercial credits, has increased its scope but little during the year. Statem ents on all notes or trade acceptances of over So,000 are required, bu t no attem pt has been made to give the service of checking credits to m em ber banks. A ccepting banks and bankers have been investigated, and where their bills have been purchased unindorsed they have been required to furnish statements. The nucleus of an examining departm ent has been established and is working in conjunction with the credit departm ent. Statem ents of condition of m em ber banks are carefully analyzed and every attem pt made to keep in close touch wTith their condition. State m em ber banks are either exam ined annually b y this ban k 's exam in ing departm ent, or a representative participates in the exam ination b y the State authorities or public accountants, although m some cases the exam inations of State banking departm ents have been accepted w ithout participation. D E P O S IT S . M em ber bank deposits with this bank have shown a steady increase throughout the year, having expanded from a b o jt SSO,000.000 at the end of 1917 to an average of about S100.000,000 toward the end of 1918. This has been due to increase in m em bership b y the admission of trust com panies during the year and the increase which m em ber banks in general have had in their own deposits, necessitating the carrying b y them of larger reserves. A X X C A L REPORT ( >F FEDERAL RESERVE BANK OF BOSTON. 15 Taken as a whole, little trouble has been experienced in having m ember banks maintain the required reserves, although at times members have been inclined to allow their accounts to drop below the requirements, taking care to see that their balances were built up during the m onth so that no average deficiency occurred. It m ay be found desirable at an early date to obtain weekly instead of m onthly reports of required reserve. The policy of penalizing those which have insufficient reserves has been continued throughout the year. P E R IO D IC REPORTS R E G A R D IN G MEM BER RANKS The system of weekly reports of m em ber banks in the larger centers, begun late last year, has been continued. W eekly reports of clearings of baiiKs in the principal cities of the district are received each week. There have been four calls by the Federal Reserve B oard for conditions of m em ber trust com panies during the year and six calls by the Com ptroller of the Currency for the conditions of national banks. Copies of these reports have been received b y the Federal Reserve Bank. A report of at least two exam inations of each national bank is received each year from the chief national bank examiner, and at least one exam ination is m ade of each other member, as m entioned elsewhere. F is c a l A gency C E R T IF IC A T E S OF O p e r a t io n s for IN D E B T E D N E S S T AND reasury D epartm ent. GOVERNM ENT D E P O S IT S . Fiscal operations of the Governm ent have been a m ore dom inant factor in the activities of the Federal R eserve B ank than in any previous year, becom ing increasingly h eavy as the year advanced and as participation of the coun try in the E uropean war becam e greater. Throughout the entire year, as will be seen b y Schedule 22, the Treasury Departm ent m ade offerings of United States certificates almost fortn igh tly—-certificates issued in anticipation of the paym ent of taxes and those to be refunded b y Liberty loan bonds. A s regards issues other than those for tax purposes, each Federal R e se n e dis trict was allotted an am ount based on a percentage of its banking resources. T o handle these frequent offerings, a com m ittee was formed, consisting of Storer P. W are, chairman ; Charles A . Morss, govern or: and Frederic H. Curtiss, Federal Reserve agent. This com m ittee was supplem ented b y representatives from 16 centers in the district. The com m ittee urged every bank to set aside 2^ per cent o f its resources every two weeks to invest in certificates, and in time m ost of the banks were able to a dop t this program . Schedule 23 shows the amount of subscriptions in the district. 16 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. Many subscribing banks paid for their certificates b y crediting the Governm ent on their books, deposits being secured b y collateral as specified by the Treasury D epartm ent. These deposits were gradually withdrawn b y the Governm ent and placed on deposit with the Federal Reserve Bank, being checked against or transferred b y the Governm ent, as needed. A t each withdrawal, which was on a uniform percentage basis from each bank, members financed them selves when necessary through rediscounting with the Federal R eserve Bank. Fluctuations of rediscounts in the Federal R eserve Bank, shown b y chart D , illustrate graphically how this deman 1 was met. A similar m ethod of financing was adopted in connection with the paym ent of Federal taxes on June 15. These taxes am ounted in New England to over §300,000,00!). These paym ents falling largely on the B oston banks, a great part of the receipts was deposited with those banks, proportionate to the am ount drawn on each. These deposits were likewise secured b y collateral and gradually withdrawn. Schedules 24 and 25 and accom panying chart show details o f G overn ment deposits. F L O T A T IO N OF L IB E R T V LOANS. The organization built lip during the first and second cam paigns was maintained and further im proved to handle the third and fourth Liberty loans. The chairman of the Liberty loan com m ittee was the govern or of the Federal Reserve Bank of Boston, Charles A. Morss. I h e active management was in the hands o f N. Penrose Ilallow ell, executive chairm an; J. R. Macom bor, assistant executive chairm an; James Dean, chairman of distributing com m ittee; and Mrs. F. L. iliggin son , chairman of the w om en ’s com m ittee. The handling of these loans and other fiscal operations has required a large increase in the banking force and accom m odations. Details of the loans are contained in Schedules 26 to 34. The epidemic* of inlluenxa which continued until almost the end o f the fourth Liberty loan cam paign prevented all forms of public dem onstrations, which had proved so effectual in previous cam paigns and other methods to stimulate subscriptions had to he adopted. Individual solicitations had to be increased and the Federal Reserve Bank established a 4 per-cent (M)-dav rate on rediscounts o f loans on bonds of the fourth Liberty loan in order to stim ulate subscriptions against future income. The quota allotted to this district for the third campaign was S250.0U0.000 and for the fourth cam paign, §500,000,000. The sub scription s received were 8354,537,250, or 141 per cent, and 8632,221,S50, or 126 per cent, respectively. A XX r AI, REPORT OF Y HDERAI. RESERVE P.AXK OF BOSTON. It wa 1:-savi x (;s ( k irr11 r(•a t e s . Until N o v e m b e r 15. lUls, tin1 war- savings c a mp a i gn was c o n d u c t e d b y the Treasury De par t me nt. The Federal Reserve Hank s i mp l y carried and distributed s tamps to the qualified agents. Early in N o v e mb e r , acting under instructions from Wa s h i n g t o n , the c a m paign for war savings was placed under the direct ion of the g ov e r no r s of the Federal Reserve hanks. Until the end o f the year, the same organizati on as in the past has been continued. F r e o u e n t meet i ngs hav e been held b y the g o v e r n o r wi th the chairmen of the different State commi ttees , and efforts have been made to s ti mul ate sales o f war- savings and thrift stamps. Af t e r the first of the year, Mrs. F. L. Iligginson, chairman of the w o m e n ' s L i b e r t y loan c o mm i t t e e , will b e c o m e district chairman of the war- savings c ampai gn, and she is at present- per fec ti ng an o rganizati on wh e r e b y that i mp o r t a n t w o r k will be placed in the hands of c o mm i t t e e s of wo me n, w h o will w o r k closel y in touch witli the L i b e r t y loan organizati ons, and w h o h o pe to d e v e l o p a general c a mp a i gn f or thrift and e c o n o m y t h r o ug ho ut the district. Schedul e ‘>o shows sales b y States. C A P IT A L IS S U E S C O M M IT T E E . A ctin g under instructions from the Federal Reserve Board, fo llo w ing a request from the Secretary of the Treasury, a com m ittee was form ed to pass on all applications with “ respect to capital expendi tures or the issue of new securities” originating within the N ew Eng land district. This com m ittee reported its conclusions to a central com m ittee in W ashington, the reports being based upon w hether such expenditures or issues were com patible with the national in terest. This com m ittee consisted of Frederic II. Curtiss, chairm an; Charles A. Morss, vice chairm an; Charles Francis Adam s, H enry G. Bradlee, Philip Cabot, Allen Curtis. Henry B. Day. Francis R. Hart. James F. Jackson, John E. Oldham, and R obert W insor. Its first meeting was held on February 1. 1918, and thereafter weeklv. The com m ittee acted under the direction of the Federal Reserve B oard until A pril 5, 1918, when the W ar Finance Corporation law went into effect. A fter that date these same persons, together with Thom as W . Farnum. Allan Forbes, Arthur M. Heard, R obert W . H unting ton, Frank W. Matteson, E dm und R. Morse, and II. M. Yerriil, continued to serve as a permanent com m ittee until thev were authorized to dissolve on Decem ber o l , 19 I S . The com m ittee secured the services of George Tyson as a consulting m em ber and E. I L K ittredge o as secretary. The bankers and brokers of the district ogave their fullest support to the activities of the com m ittee. 116016— 19— 3 18 A X XU AL REPORT OF FEDERAL RESERVE BANK OF BOSTOX. Schedule 30 shows to some extent the scope of the com m ittee’s activities. The com m ittee, besides assuming jurisdiction over securi ties, supervised to a large extent the bank loans of public utilities and assisted in investigating and recom m ending needed Federal legis lation to safeguard the public against issues of fraudulent securities. W A It F IN A N C E C O R P O R A T IO X . The W ar Finance Corporation has been called upon to assist to a very limited extent in the New England district. In those cases where advances have been made, the Federal Reserve Bank has acted as agent, delivering funds furnished b y the corporation and receiving and holding securities and docum ents as directed b y it. FEDERAL R ESER VE NOTE IS S U E S . The amount of Federal Reserve notes outstanding has increased steadily throughout the year, the gold held b y the bank being thus increased and conserved. The amount outstanding at the end of the year was considerably more than double the am ount on January 1, 1018, as is shown b y Schedules 37 and 38. U nder arrangements between the bank and the Federal Reserve agent, the total bill holdings of the bank are pledged at all times as security for these notes in addition to the required gold reserve. The large demand for currency has necessitated the printing and m ainte nance of a larger supply, and the standing order on hie in W ash in gton for notes of this bank has been increased several times during the year. Under the amendment to the Federal Reserve A ct of Septem ber '26, 1018, authorizing the issuance of Federal R eserve notes o f 8500, '81,000, $5,000, and S I0.000 denom inations, orders have been filed for an amount aggregating 852,000,000 of these denom inations for this bank. Including notes in process of .printing and the above notes of large denom inations, it is intended to have available at all times a supply aggregating about §225,000,000. FEDERAL RESERVE BANK NOTES. Under the law providing for the tem porary retirement of a large quan tity of silver certificates and the m elting o f the silver dollars, against which these were issued, this bank has put into circulation nearly 87,000,000 o f Federal Reserve bank notes. These are secured b v U nited States notes and certificates, and are issued in denom ina tions of 81, 82, and So. P O S IT IO N O F C O M M E R C IA L BAXKS AS THE R ESU LT OF W AR F IN A N C IN G . A part from tem porary G overnm ent deposits in the banks, deposits at the end of the year show very little change in volum e from that shown at a similar date in 1917, the general m ovem ent being an in A X X U A L REPORT OF FEDERAL RESERVE BAXK OF BOSTOX. 19 crease in demand deposits and a decrease in time deposits. Schedule 40 shows a com parison of items of thirty-six of the larger banks in the district in Decem ber, 1917, and Decem ber, 1918. The heavy increase in the am ount of U nited States securities owned is due largely to the holding of short-tim e Treasury certificates, the bank holdings of L iberty loan bonds showing a rather moderate increase. On the other hand, there is a heavy increase in loans secured by U nited States securities. W hile hanks were urged to purchase short-term certificates of indebtedness as they were issued, they have been discouraged from tying up their com m ercial deposits in long-term Governm ent bonds. Banks were urged during the war period to conserve their resources for G overnm ent uses, to assist industries engaged in war work, and to curtail as far as possible, credits to industries not essential to the war. P O L IC Y TO BE PURSUED IX R E S T O R IN G L IQ U ID IT Y OF BAXKS. As the industries of this district when hostilities ceased were largely given to Governm ent work, the cancellation of war orders will p rob ab ly bring about a considerable reduction in com m ercial loans. Banks of the district are carrying a very large volum e of loans against L iberty bonds, and on D ecem ber 31 about 75 per cent of the loans in the Federal Reserve B ank and of loans discounted b y that bank with other Federal R eserve Banks were against G overnm ent securities. As early as possible, means should be taken to encourage liquidation of such loans. The m ost effective means w ould appear to be the gradual increasing of the Federal R eserve B a n k ’s discount rate on bond-secured loans. H ow fast and how far this rate should be increased will depend on its effect on the future offering of G overn m ent securities and the rate at w hich such securities are offered. N o other m ethod than by rate increase seems practicable, although banks should be urged to bring som e pressure on their borrowers o f this class, either b y increasing rates or b y dem anding an additional margin of collateral. H ow soon this war paper can be liquidated, it is difficult to say. If liquidation com es in com m ercial loans, banks m ay liquidate their Federal R eserve B ank borrowings, but as soon as the G overnm en t’s requirements have been met, liquidation should be steadily and consistently forced b y the Federal R eserve Bank increasing its rates. IX T E R X A L O R G A X IZ A T IO X . There have been several changes in the official organization of o o the bank during the year. Charles A. Morss, class B director, having governor of the bank,' resigned as a director o been chosen o o 20 AXXUAL REPORT OF FEDERAL RESERVE BAXK OF BOSTOX. during tin* first half of the year, and Philip R. Allen, of East Walpole, Mass.. was elec ted by hanks in group 1. on July 1. 1918, to fill the unexpired term, running until January 1, 1921. The Federal Reserve Board, on August 0. appointed Jesse H. Metcalf, of Provi dence, R. I., a class C director, to iill the unexpired term of Andrew J. Peters, who had resigned to become mayor of Boston. This term runs until January 1, 1920. The terms of Arthur M. Heard, class A director, and Charles G. Washburn, class B director, expired January 1. 1919. Under the amendments to the Federal Reserve Act in September, 191 S. Mr. Heard was not eligible for reelection, being an officer of a bank in a different group from that which he represented as director of this bank. Elections were held during the fall month**. Charles G. Washburn was reelected and Edward S. Kennard, cashier of the Rumford National Bank of Rumford, Me., was elected to succeed Arthur M. Heard. The terms of these directors expire January 1, 1922. Allen Hollis, class C director, whose term expired January 1, 1919, was reappointed by the Federal Reserve Board for a term running to January 1, 1922, and was redesignated as vice chairman. A t a meeting of the board of directors held January 3, 1918, Daniel G. Wing, president of the First National Bank of Boston, was reelected as a member of the Federal Advisory Council. The growth of the bank has necessitated the election of additional officers. On January 3, Charles E. Spencer, jr., treasurer of the Colonial Trust Co. of Waterbury, Conn., was elected deputy governor, taking office February 1, 1918. On January 31, William N. Ken von was elected assistant cashier, to take effect February 1, 1918, and on March 28. Frank W . Chase and L. Wallace Swcetser were elected assistant cashiers to take effect April 1, 1918. The clerical force of the bank has been doubled during the year, there being 499 employees on December 31, as compared with 256 at the end of 1917. Of this force, about 60 per cent are women. In addition, about 86 clerks are employed by the Liberty loan committee. CLEARIXOS AX I) COLLECTIOXS. The check collection department has had rapid growth during the year, the clerical force having increased from 35 to 109. The number of New England items has increased from 9,000 to approxi mately 35.000 loose checks a day, not including checks received from Boston banks. The latter are received in packages divided by banks on which drawn. This method has not been entirely satisfactory, and it is expected that before long all checks will he received loose and be sorted by the Federal Reserve Bank. The daily average of Government checks has increased from 2,500 to ANNTAL 7,500. RKPORT OF FKDKKAL RESERVE BANK OF BOSTON. '2 1 Boston Clearing H ouse checks have increased correspond- in^ly. The large increase in cheeks handled was brought about by two factors: First, the elim ination on June 15 of the service charge for collection; second, by the X e w Y o rk Clearing H ouse rule, which m ade it necessary for X ew Y ork banks to collect all checks through the Federal R eserve B anks, it they were unable' to collect them as expeditiously through their other correspondents. Previous to the elim ination of the service charge, it was custom ary to m ake a per item charge suflicient to cover the actual cost of collection. This cost is now absorbed by the Federal Reserve Bank. The collection system for tim e item s, while not so well developed as that for check collections, has m ade considerable progress during the year. The elimination of the service charge on checks also applied to tim e collections and brought about an increase necessi tating the enlargnient of that departm ent. A ll items are collected free except for the charge m ade to the Federal Reserve B ank by the collecting agent, and a charge of 15 cents on item s returned unpaid. factory, The tim e collection system , how ever, is far from satis anil som e uniform basis for collection charges should be agreed upon b y the Federal R eserve B an ks instead of leaving the charge subject to the pleasure ot the collecting bank. GOLD SETTLEM EN T FUND. Commencing in May. the Federal Reserve agent of Boston trans ferred to the gold settlement fund the entire amount of gold certi ficates held by him against Federal Reserve notes, and these are now held in Washington, subject to his order. Schedule 12 shows the amounts cleared during the year, not including direct transfers caused by special transactions and which did not enter into clearing, such as transfers between the bank and the Federal Reserve agent of Boston. B A N K IN G QUARTERS. One of the most serious problems which the large increase in the Federal Reserve Bank's activities has produced has been to secure adequate quarters in which to house its large force of clerks and to properh handle the immense volume of work that this increased activity has brought about. At the beginning o f the year the bank occupied about 16,000 square feet of w orking space, its quarters, besides the m ain banking room at 53 S ta te Street, exten din g to 84 S ta te Street and 131 S tate Street. These were later increased by renting a building at 20 K ilb y Street, besides additional sp a te in 53 and 84 S ta te Street. 22 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. This has given the bank, at the end of the year, about 40,000 square feet of w orking floor space. H avin g banking quarters so p oorly located has prevented econom ic and efficient handling of w ork and a perm anent building was deemed vital. A fter careful survey of the available sites, the board of directors voted to purchase the land and building at 05 Milk Street. This property, covering about 13,363 square feet of land, was purchased on June 27 for slightly over Si ,000,000. The lo t has a frontage of 63.51 feet on P ost Office Square and of about 129 feet on Pearl Street, and is conveniently situated with respect to the financial section of B oston. It is proposed to tear dow n the present building and to erect at an early date a building w hich will accom m odate all of the b an k ’s activities. In order that this subject m ight be given careful consideration and study, a building com m ittee was appointed by the board of directors, consisting of E . R. Morse, chairm an : Charles G. W ashburn. Philip R . Allen, Charles A. Morss, govern or: and Frederic II.Curtiss, Federal R eserve agent. CONCLUSION. Business and banking have not as yet had time to adjust them selves since the signing of the armistice. The im petus of war w ork is still felt in almost every trade, and the year has ended w ith m ost of the industries fairly active, and with a strong dem and for m oney, the continued requirements of the G overnm ent for loans m ore than offsetting any liquidation of G overnm ent com m itm ents on war contracts. As yet there is no m arked oversupply of labor in the district. The readjustm ent of X ew E ngland industries from a war to a peace basis will be no easy task, as this is largely an industrial com m unity. The raw material market will, no doubt, within a short time adjust itself, but the problem of labor is more difficult to solve. I f the mills and manufacturers of X ew England are to be dependent upon dom estic trade, there must be reasonable p rotection for them from foreign com petition, and if on foreign trade, they must be in a position to com pete against scales; of wages prevailing in the industrial centers of other countries. M anufacturers must be able to transport goods and finance sales to foreign m aikets in a satisfactory manner, if they are to com pete with foreign-m ade goods. The large increase in our m erchant marine, it is expected, will make it possible to transport goods econom ically in A m erican bottoms* and the large banks in X ew England are organized and fitted to give satisfactory service in financing any foreign dem and fo r goods m anufactured in the district. 23 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. istnesot the district and the liquidation of the heavy loans now being carried by the banks through the financing of subscriptions to Government securities will require the most careful study and handling, both by the local bankers and by the officials of the Federal Reserve Bank. Exhibit A.— Movement of principal earning asset* o f the. Federal Reserve Bank o f Boston during the calendar year 19IS. { f n t h o u s a n d s o f d o l l a r s : i. p ., (MX) o m i t t e d . ] j DiscountI ed paper jseen red \>v Ot her d isI U nited' counted jStates war paper. I oblisaj tions. , *> 1 Jan.4__ Jan. 11... Jan. IS... Jan. 25... Feb. 1... Feb. 8... Feb. 13.. Feb. 21.. Mar. 1... Mar. *... Mar. 15.. Mar. 22.. Mar. 20.. Apr. 5... Apr. 12.. Apr. 11).. Apr. 20.. Mav 3... Mav 10.. May 17.. May 24.. May 31.. June 7... June 14.. June 21.. June 2.*.. July 5... July 12.. July 19.. Julv 26.. Auk- 2. . . Aug. 9... Aug. 16. . Aug. 23.. Aus. 30.. Sept. 6... Sept. 13.. Sept. 20.. Sept. 27.. Oct. 4... Oct. 10.. Oct. 1*.. Oct. 25.. Nov. 1... Nov. .*... Nov. 15.. Nov. 22.. Nov. 29.. Dec. 6... Dec. 13.. Dec. 2u.. Dec. 27.. Bills ; Total hills in ! discoum- 1’er cent open ed and (1-5-5). market, i bought. ( 3 9 . 730 3 7 ,1 0 6 3 9 , 1S7 4 0 .2 1 4 :K 720 • 3 7 .5 1 0 4 4 ,1 6 0 ; * 4 * .5 6 7 5u .* 2 2 4 9 . M 3 4 6 .5 0 0 4 6 .005 ■ . i 4 0 ,1 0 3 3 1 7 .5 9 1 5 7 .3 2 1 1 4 .1 0 4 1 1 .4 4 1 5 1 .2 1 0 5 0 , 6 2 -s 1 2 .6 3 0 1 0 .9 4 3 1 0 .5 2 6 5 2 . M 4 , i 1 3 .5 *9 1 3 .4 7 5 4 0 5 4 5 2 £0 | l | ; 1 4 .2 6 7 1 6 ,6 0 6 is , m s l'V S 6 2 i 2 1 .0 3 7 2 2 .3 1 4 2 3 . 0r 0 137 y , 460 9 , S46 .5 7 3 .3 0 7 . 0 *2 .2 6 5 3 6 .0 4 0 1 0 ,0 3 5 11,6 S 1 0 0 9 7 7 0 ,9*1 7 1 ,5 1 6 5 1 .1 7 3 i 7 2 . 5 (1 7 8 5 .3 2 4 i 2 2 .2 a * 6 .1 7 3 : 2 6 ’ 267 2 1 .6 *3 1 1 1 .5 9 1 1 1 0 ,* 5 6 2 4 .2 9 7 2 0 .6 3 6 1 1 5 .4 7 1 105. 100 IS .9 3 s 2 1 .6 1 6 1 0 3 . "9 5 7 1 .2 4 6 1 5 ,5 9 4 1 3 .1 3 9 : | H .S 3 0 1 1 .0 7 9 111653 ! i ! 1 1 1 1 .6 3 5 .6 1 6 .4 7 2 .5 7 s ’ i | j! 1Q I. 4 S 4 : 12s . 459 14 0 , 2 s5 j i 1 3 3 , 4V . 1 2 .6 1 6 1 2 .7 4 7 ji 1 1 4 3 .7 1 2 1 3 5 .6 2 4 1 0 ,S 4 0 9 .2 2 4 I ' 1 3 . *1 4 : 1 3 S .6 3 7 1 1 7 .6 6 2 1 3 0 .1 4 2 1 9 .3 7 4 0 1 1 2 2 ri. 4 4 0 2s . 746 M . 9 S5 ; 2 9 .3 5 3 S 3 ,5 0 4 : 2 9 .*2 1 S 4 .0 5 9 $6 , S4 0 ; «S9 . 6 5 5 S 7 ,0 35 7 vS , 3 .S 5 i ! 7 2 .S U 9 4 , 74s , 1 1 3 .3 2 5 1 1 3 .3 7 0 3 9 5 3 122. 6 *2 .S 2 5 .7 4 4 . S*0 .* 6 3 s 3 0 .7 1 0 : ; i 1 1 ,9 4 1 15. 44 * I ; 2 5 ,2 2 9 1 0 .9 4 2 i i : ; > 1 4 ,6 6 0 1 2 .*4 3 ! ! 1 5 .9 4 4 j •*9 , 2 4 1 ! 5 5 5 4 s o .597 9 3 .*5 4 U K ). 9 3 4 111. 3 3 * 2 9 .3 1 1 3 5 .*4 2 4 6 .9 6 s 7 2 ,7 1 9 6 6 ,1 7 2 6 S t 212 7 4 ,* 4 3 9 9 , 4 (W 1 6 ,3 6 0 2 1 .9 2 9 ; 7 5 . *0 1 7 4 ,7 4 3 7 9 9 2 5 0 . 6 2 1 .3 0 3 2 ( 1 .3 3 6 2 1 . 63 s 6 7 .4 1 4 7 2 . lS s . . . . 5 1 .1 5 2 . 6 2 1 . M i 1 >4 . 4 7 0 > 4 .9 5 7 j 6 4 .9 S 1 ; 6 4 2 1 6 S .S 24 6 0 .3 5 0 | 2 4 .2 2 9 6 6 6 6 6 6 . 1MJ 4 7 ,0 1 3 9 1 . 1 7 4 : 6 7 ,2 1 7 7 1 , 44* 4 *. 1 4 s .056 4 5 ,> 4 4 2x 363 2 0 .6 5 6 2 2 .9 0 5 | 7 0 7 3 5 6 3 .5 9 1 6 6 ,*7 5 1 1 .5 7 5 1 2 ,3 8 7 2 7 ,1 0 2 7 2 .9 7 2 .5 ,5 9 ,5 5 ,2 4 .* 0 ,4 7 5 9 . 0 4 5 .9 1 1 .S 4 S l 6 4 7 3 7 9 * 5 7 1 .9 1 3 . 7f ,1 2 7 , 0 S6 | : i 10* . 43 * 116.3 2 S 7 7 6 5 ! 1 7 ,6 1 7 1 6 .5 0 4 1 2 2 . *7 7 1 2 7 .7 9 7 7 2 .4 1 7 7 0 . 3 *7 6 3 . M 0 6 ( 1. 7 6 2 .4 6 4 . 1 6 1 .5 6 *. 7 67. 7 6 6 . 2 72. 4 *7 4 1 .2 7 7 6 5 .X S 7 0 7 ,5 5 5 1 3 1 .0 9 6 , 7 5 .7 2 3 * 2 .6 4 4 4 3 . S 15 ; . *4 9 .< 4 3 , M 3 .9 0 S 6 s . 321 m . 23s 6 s .304 5 6 .0 1 2 10.6 3 * 1 0 . s 9 *> 9 .940 9 .4 7 7 1 1 .4 7 5 1 2 .7 4 6 ■ 6 7 .3 0 6 7 7 .5 0 1 : ".0 7 2 0 3 6 9 2 2 .1 6 7 2 0 . M l 9 3 116 134 120 J1 1i !| 5 6 .S 2 9 5 9 ,7 4 1 5 s ,* 2 s 3 0 3 5 2 0 . 749 7 6 .5 1 6 7 5 .2 0 5 6 1 .7 9 3 7 0 ,7 2 6 6 0 .2 4 9 5 4 .7 6 1 .0 .S .4 ,0 5 1 .4 3 0 6 2 .6 1 1 4 6 . (-0 3 j ! , i 9 ,9 2 4 9 .7 1 3 = > ,> 2 6 0 1 .5 6 5 6 0 . 72* 4 2 . * 1 ! 6 1 .9 3 2 6 7 .1 0 5 6 6 ,1 9 1 1 0 .4 3 6 > .2 0 1 V 5 7 . M 0 m , 5 is 6 4 .7 6 ;}. 1 1 0 .1 3 7 ! 1 : . i ;| ,7 5 7 .9 2 3 .2 S7 . 6 S5 : 5 0 . 57 s 5 s, 132 6 2 ,1 5 1 6 1 .3 *7 1 3 1 4 I6 2 1 4 4 .5 0 4 4 3 ,2 5 6 4 0 .* 0 5 , ; 6 9 , 75* 5 0 , *4 6 4 5 5 6 4 1 . 436 3 3 .4 5 7 59 . 3 6 5 . 1 6 *. * 4 9 .6 6 3 * 5 9 0 7 6 ;■ :i ! | | 1 1 ,6 4 3 1 0 ..* 6 9 I assets. 6 6 ,9 5 1 5 7 .0 4 2 5 0 .97 S i j 6 .3 5 0 9 .3 0 7 1 1 .7 2 4 : 3 5 .1 6 5 3 6 . 4S 1 '* 9 .6 3 3 5 . '3 2 4 7 .0 3 3 4 6 ,9 6 6 2 6 .2 0 3 3 1 ;2 4 2 3 2 .1 3 4 4 Total earning 1 3 6 .6 2 3 1 4 0 .> 6 0 1 3 * .1 2 9 1 4 5 ,1 2 4 1 4 * .3 4 7 1 5 9 .1 6 9 1 5 * .2 2 6 14s .934 7 3 ,1 9 5 7 2 , *5 2 7 1 , 1 6 { 5 9 .1 2 3 0 5 , 6 2 * 6 9 .0 3 2 40. 1 47. * 53. 4 5 2 .1 . 5 5 5 5 4 i : i ; ; 2 .1 5 .9 *. 6 *. 5 9. 4 49. 7 1 1 3 ,9 4 7 1 1 3 .4 0 1 1 1 * .0 0 1 0 7 ,6 4 1 0 0 .4 3 > * .9 5 9 6 .2 1 9 4 2 9 2 5 1 .0 ’ 5 6 . 2 5 s. 1 ! I : >3 . 2 9 2 5 9 .6 5 >. 1 5 6 .0 1 1 5 ,3 2 4 1 2 4 ,6 3 6 . i 5 3 .4 l l 3 , 4 9 t> 1 1 5 ,2 7 9 1 3 9 .5 7 6 1 4 3 ,* 1 3 141, 0 *3 4*. 7 5 3 .5 11S . 077 6 3 .3 7 3 .4 1 5 4 .5 2 3 1 6 5 ,3 4 5 S T ). 2 1 6 4 .4 0 1 1 6 * . ‘J 4 1 s i. 2 7 7 .6 1,'2 .5 6 6 SO. 5 1 5 3 , 21*7 . 1 3 0 . 1 4 0 .0 *6 S3 . 4 S 3 .1 7 9 .6 : j : 1 5 4 ,7 6 3 1 7 5 ,7 6 0 159, 3 *5 1 6 0 .1 1 6 1 5 3 .0 2 7 1 5 4 .6 0 7 24 A X X l'A F REPORT OF FEDERAL RESERVE BANK OF BOSTON. k h FEDERAL RESERVEBANK OF BOSTON. MOVEMENT OF EARNING ASSETS DURING THE CALENDAR YEAR ISIS. Curve I: liar/bcin Jiqver, Curve£:Total&Us QiscoiintztL, Curve3:S3ills $iscctzn£ed, andCBougkt;, thrve 4 OctalCorningJisscts, inrl U.S. Gpvcmme/U:SccurUicj. CurveS;IkaUo of TiarSoarvStmcr to Jolzd 3zUs Z)iscovint&lar-dJjcugk£. 4-U tiZE ig I S S I4 0329S;Z?3#J/C'J7#3!7 M Zi& S 12tSXCB £ 2 3 X 6 3 £ X M f # 3 £ l <f e & 2 S 6 !2 & * JAN. \F E ^ J * c iC \ A fR . I M AY ■ JUNE\jaLY ! AUG. iJFfTl OCT. t'HMLT A. ! NOVA PEC. ANNUAL E R EPO ET OF F E D E R A L RESERVE B A N K 25 OF B O S T O N , B .— Movement of cash reserves net deposits, Federal reserve note liabilities and the reserve percentage of the Federal Reserve Bank of Boston during the calendar year 1918 x h ib it . [In thousands of dollars; i. e., 000 omitted.] Total cash reserves. Net deposits. Federal Reserve notes in actual cir culation. (2+3.) Ratio of cash re serves to net deposit and Federal Reserve note lialPities col*" bii^u. 0*' 5 Jan. 4 ... Jan. 11.. Jan. 18.. Jan. 25.. Feb. 1 .. Feb. 8 .. Feb. 15. Feb. 21. Mar. 1 .. Mar. 8 .. Mar. 15. Mar. 22. Mar. 29. Apr. 5 .. Apr. 12. Apr. 19. Apr. 26. May 3 .. May 10. May 17. May 24. May 31. June 7.. June 14., June 21. June 28. July 5 .. July 12. July 19. July 26. Aug. 2.. Aug. 9.. Aug. 16., Aug. 23. Aug. 30. Sept. 6.. Sept. 13. Sept. 20. Sept. 27. Oct. 4 . . . Oct. 10.. Oct. 18.. Oct. 25.. Nov. 1... Nov. 8... Nov. 15.. Nov. 22.. Nov. 29.. Dec. 6 . . . Dec. 13.. Dec. 20.. Dec. 27.. 80,408 94,650 106,414 103,530 92,886 106,072 87,574 98,291 91,455 110,497 110,005 114,706 118,737 116,237 122,937 133.596 135,658 126,150 127,714 137,710 135,353 143.597 146,612 139,718 138,026 132,912 133,236 145,442 113,799 109,863 116,975 140,326 140,317 150,000 147,403 140,992 147,900 138,551 137,810 127,713 131,446 127,928 143,694 109,166 133,125 121,186 113,350 106,501 117,488 111,919 106,131 115,168 69,791 73,076 87,505 88,459 76,257 85,438 73,390 86,973 83,041 86,096 80,124 88,084 94,480 87,659 90,081 3/SdS fa , 101 B9,377 ‘86,991 91,040 ^00,960 ;13,013 £,002/1 107,245 (! 131,149 i 98,199 94,517 88,099 107,249 88,533 104,053 105,846 104,507 110,396 99,472 105,521 104,648 110,062 102,510 128,988 100,075 132,907 120,544 104,193 118,012 111,273 102,160 83,512 91,835 74,246 75,308 74,682 75,872 76,434 78,755 80,985 83,701 87,273 88,908 89,932 90,844 9&,'Z5y £%978 % 138 J&9,437 101,467 102,547 102,484 102,818 102,898 104,475 107.327 107,808 109,955 112,533 118.328 121,153 121,466 125,759 128,844 131,725 132,857 134,157’ 136.817 141, m 144,288 145.576 148,053 152,981 155,320 155,629 151,792 152,460 153,267 152,980 150,983 150,906 151,943 155.817 161,359 163,205 144,0-^ 148,^4 163187 10t, 331 j/2,691 j64, 193 154,375 170,674 170,314 175,004 170,056 178,928 187,269 183,637 188,219 192,451 201.535 191,648 191,861 189,809 193,938 205,435 210,340 203,964 198,957 200,914 225.573 262,302 219,665 220,276 216,943 238,974 221,390 238,210 242,663 246,347 254,684 245,048 253.574 257,629 265,382 258,139 280,780 252.535 286,174 » 273,524 £55,176 268,918 2^3,216 257,977 24#,871 25 040 55.8 63.8 65.6 63.0 60.8 64.6 56.7 57.6 53.7 63.1 64.7 64*1 63- 4 63.3 65.3 69.4 67.3 65.8 66; 6 72.6 69.8 69.9 69.7 68.5 69.4 66.2 59.1 57.6 51.8 49.9 53.9 58.7 63.4 63.0 60.7 57.2 58.1 56.5 54.3 49.6 49.5 49.6 51.2 43.2 46.5 44.3 44.4 39.6 44.6 43.4 43.3 45.2 26 AX X C A E REPORT OF FEDERAL RESERVE BAXK OF BOSTON. J FEDERAL RESERVEB^N/fOf BOSTON. D E P O S IT A N D N OTE L IA B ILIT IE S , ALSO CASH RESERVES, DURING THE CALENDAR YEAR 1318. Curve / JfetDeposits. CurvcZ Jotal Cash, Jt&scrves. Curve J. JfggreaaU M C ^ en osU a ru i^S l JfbteZiadclitics Curve4.3c£Ltio of dxshJffejerrcs CoJfggregcUe J/cCflejiasit and 3:$. Jfote HaSUUtAs. Chart B. § ANN TAJ, REPORT OF FEDERAL RESERVE BANK OF BOSTON. 2'. Schedule 1.-—Income and ec pease. r a id in lieu of dividen ds on stock ca n ce le d .......... fu r re n t e x p e n s e s ............. ] Erectors' fees.................... R e n t ...................................... Salaries................................. E xchange p a id .................. Cost 01 Federal Reserve not 1917 1918 SI1.596, 56 926. So 2ss. 7o 781.10 2 Hi. 49 $271. 151.N52. 1. 230. 2ti. 6s 1. 274, 361. 245. >9 ; Bills discounted for 18 m em ber b a n k s .............. X> A cceptances p u r c h a s e d .. 56 State, city , and to vn 19 [ n o t e s - . . '. ........................ n ! Interest on U nited l States securities. 167, *28.00 !: Profit on U n ited States securities......................... j Penalties for deficient 21*, 554.02 j reserves............................ 27.811.14 ; Sun dry p ro fits .................. 193. >35 69. ID 102. 621. 37 Assessm ent for expenses of Federal R eserve B o a r d ................................ R eal estate e x p e n s e s .. . . . Furniture and e q u ip ment .................................. Difference a c c o u n t .. Repairs and a lte ra tio n s.. S u n d ries............................... Transit d ep a rtm en t......... Heal estate charged o f f . . T o b a la n ce ........................... Tot id ............ Incom e. 191S E xpense. 21,220. 35 S. 973.S3 >14.>3 10,450. INI 1,462.24 : 571,117. 13 S3,068,027. 3* 502,397.30 931'700.9s 94.7S4.S6 107.719.03 11.101.60 41,821.34 6.105.39 7, 299. t»7 I S ,425.71 212.760.27 T o t a l......................... 1,200,605.2! 4 .380.454, 71 24.173.97 ! 4,557.70 61.S94.92 3r554.20 101,529. 3s ; 200,000. 00 ■ :3,304,90s. 25 . 1.20^, tU»5. 24 4.3S0.454. 71 ; S c iiE iu i e 2 .— D is tr ib u tio n o j net ea rn in g s . Year ending Dec. 31, 1917. Y ea r ending D ec. 31, 19is. 1917 1918 1 ■ '$886, 294. 79 S3,304, 90$. 25 banks. | R eserve for depreciation on ; 138.266. 25 U nited States securities. j B a la n ce .......................................j 150,200.00 2,921,000. 00 ss6. 294. 79 3.304,908.25 Reserve ior franchise t a x . . . . . Farriod to surplus a c c o u n t.. 191s 75,100.00 75,100.00 150, 200. 00 S e n e i> u l e ; : ij 1919 1 ,460,500.00 ! Jan, 2, b a la n c e . 1, <60.500. 00 ■ 2. 921, (XX). 00 li ss6f 294.79 ! . 3,304,90S. 25 191 > 1919 b'O. 200. 00 ■ 2,921,000.00 ] 50. 2i HJ. Op : 2.921. (XXI. IX) 3 .— ('<>m(Vimtire balance sheet, D e c . 31 y 1 9 1 7 , and D ec . .11. ! !* :S . D ec. 31,1917. P ec. 31, 191 V. KKSoVRrKS. E arn ing assets: B ills discou n ted secured b y U nited States war o b lig a tio n s ................ £ 13. S97.5MS. S3 ?120. 515,6{k>. {K 13.059.656 44 o t h e r bills discou n ted ‘ com m ercial i . . .......................................................... 2 l.9 M .7 9 v 5 2 A cceptan ces p u rch ased ....................................................................................... 9.03< ,506. Oi : 15.0S4.299.96 537.750. 00 F n ite d States b o n d s .............................................................................. ............... 60'j. 750. 00 7.416,1X10.00 U nited Stares short-term o b lig a tio n ? ............................................................ * 2.194.000.00 I T o t a l................................................................................ -.................................... 77.72N, 615. 39 156. 613, 73. 37 R eserve cash: ( iold coin and certificates . ............................................................................... <iold settlem ent fu n d ........................................................................................... B:;nk of F ngland sterling irold a c c o u n t ........................................................ < ther law ful m o n e y ............................................................................................. 18,690, '.khi. oo 16, 977. ooo. oo 3,675, (N)0. 3.57F5or.. im 3,317,260. 00 37. 292.607.33 T u fa ]....................................................................................................................... 42.917.466 (so 43. 305, 081.64 40.''. 021. 21 2.2S7.793. 10 28 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. Schedule 3.— Comparative balance sheet, Dec. 31,1917, and Dec. 81,1918— Contd. resou rces— c o n tin u e d . Reserves against Federal Reserve notes: Gold ^ ith Federal Reserve agent........................... Gold redemption fund................................................. Other resources: Interest accrued on United States securities----Due from Liberty loan subscriptions.................... Expense, Liberty loan, etc. (recoverable)............ Items in process of collection1.................................. Exchanges for clearing house and cash ite m s .. . Federal Reserve notes and other cash on hand Due from Government depositaries....................... Redemption fund Federal Reserve bank notes. Real estate for bank quarters................................... $40,896, 820.00 $59,733,330.00 7,812,380.00 21, 958.75 118, 035.40 144, 167. 62 15,007, 383.44 3,216, 597. 70 4,661, 035.81 66,489, 691.55 33,133.69 567.480.00 573,091.80 52,910,S10.45 10,548,466.02 13,809,622.36 30,014,655.68 320.400.00 800,000.00 2, 000, 000.00 253,196,771.fi Total. 377,042,425.01 LIABILITIES. Capital fund: 6.691.750.00 Capital paid in ....................................................................................................... 5, 858.450.00 1.535.600.00 "5, ioo. oo ; Surplus............................................................................................................. Deposits: 82, 842,197.76 : 101,806,494.59 Due to member banks, reserve account............................................... 17,467,049.53 Due to Federal Reserve banks, collected funds1.............................. 3, 870,139.46 13, '80,544.93 I 29,969,374.00 Due to banks, uncollected funds1.......................................................... 419,414.94 1 10,499,061.56 Due to Treasurer of United States, general account........................ Due to Treasurer of United States, special account........................ 489,691.55 ! 30,014,655.68 411,417.98 Cashiers' checks outstanding................................................................... 20,416.38 i Other liabilities: 168,986,330.00 Federal Reserve notes outstanding............................................................... 77, 296.820.00 6,889,000.00 WFederal Reserve bank notes outstanding....................................................................................... 467,850.01 468,896.64 JjJne'irned discount and interest..................................................................... 93,341.66 Reserve for d epreciation and interest.............................................................................................. 1.460.500.00 Reserve for fran chise ta x ................................................................................... 75,100.00 750,000.00 Mortgage on real estate.......................................................................................................................... 253,196,771.66 Total. Liability for rediscounts v ith other Federal Reserve banks....................... 44,477,789.09 i 377,042,425.01 48,962,693.27 1 Offsettingivems to be cleared through gold-settlement fund. Items o f interest from the schedules o f this and other official reports in connection with the fiscal operations o f the United States in this district during 1918. S c h e d u l e 4 .— RECEIPTS. Proceeds Proceeds Proceeds Proceeds of the se^ ond Liberty loan and final payment Jan. 15,1918.............................................. of the t nird Liberty loan................................................................................................................. of the fourth Liberty loan and payments of Dec, 31, 1918.................................................. of United States tax certificates (1918)............................................ ..................$62,000,000 P r o c e e d s o f United States tax certificates (1919).............................................................. 100,000,000 Proceeds of United States certificates (third Liberty loan).......................................... 214,000,000 Proceeds of United States certificates (fourth Liberty loan)....................................... 381,000,000 p ^ e e d s of United States certificates (fifth Liberty loan)........................................... 92,000,000 $42,000,000 355,000,000 560,000,000 Total certificates sold.............................................................................................................................. Federal taxes collected....................................................................................................................................... Proceeds of war savings stamps to Dec. 1, 1918 ......................................................................................... 849,000,000 311, 000,000 54,000,000 DISBURSEMENTS. Expenditures disbursed by check.................................................................................................................. 1,167,000,000 Transfers to other Federal Reserve banks, n e t ......................................................................................... 581,000,000 Total United States certificates paid............................................................................................................. 609,000,000 AJTJSTUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. S c h e d u le 5 . — 29 Transactions with other Federal Reserve Banks. Acceptances allotted to and rediscounts with— Acceptances. New Y o r k ____ Philadelphia.. Cleveland........ R ich m on d .. . St. Louis.......... M inneapolis... Kansas C ity. . . Dallas____I ____ San Francisco. $20,118,745 | 12,926,908 ; OACi zz-7 15,249,557 Acceptances allotted bv and rediscount s for— ' i i Rediscounts, j Acceptances. \ Rediscounts. $4,973,582 i 5,281,831 , *25,223,947 7,338,923 ! 5,037,199 20,032,100 2 1,940,214| ....................... ! ....................... ! $3,185,450 5,000,006 2,498,477 2,000,000 14,369,921 Total. 75,041,253 45,256,047 12,195,627 : 12,983,933 1 R e p r e s e n t s a repurchase, before maturity, of acceptances sold to another Federal Reserve Bank. 8 Includes $205,214 of discounted trade acceptances. S c h e d u l e 6 . — Maturities W ithin 15 da vs. January............ February......... March............... Ap ril................. M ay................... J u n e ................. J u ly................... Au gust............. September___ October............ Novem ber____ December........ $7,260, 607.00 15,310, 545.37 11,410, 624. 69 42.844, 800.50 16.236, 141.56 16,129, 385. 56 65,427, 550.06 36,113, 229.99 54,822, 459.58 39,695, 092.43 53,420, 151.67 46,273, 134.94 o f invested funds on last day o f each month, 1918. 16 to 30 days, j 31 to 60 days. ! 61 to 90 days. $4,201. 636.64 1* 10 . 266,870. 74 7,636; 843.93 ; 553,582.45 8 , 886 . 990.48 39, 355,805. 75 6,362; 382.24 15, 406,640. 21 9,177, 357. 06 965.018.05 34, 437,479.31 12,196, 011.21 13,687, 004,60 17, 720,477.64 13,160, 917. 28 20, 290,722. 29 12,257, 240.13 45, 843,514.53 9, 276,232.55 22,884, 716.98 ,722,182.30 8,474, 961.32 259.94 36, 703.662.05 15 12, 66 $41,599. 277.57 43, *54: 262.61 13, . m 558.89 6 , 002 . 280.38 ; 28,495; 707.79 ! 10,347; 824.04 ! 13.012, 445.16 ; 30,087: 233.13 14,299; 226.04 36,369: 377. 10 14.483, 884.21 10,834, 135.09 Over 90 days. Total. §6,236.00 4,475.00 927.00 1,272. .50 7,574.50 25,221.16 13,573.00 842.056.56 30.003.04 32.053.04 872.131.39 $63, 328.391.95 82, 361,470.36 f 73, 191,454.81 ; ,617,030.33 66, 875.496.96 73, 118.274.62 | 109, 872.698.62 1 99, 665,675.69 : 128, 064,496.84 i 108, 255.422.10 I 143, 133,232.54 133 575,323.41 70 I Maturities o f commercial paper and trade acceptances at time o f discount fo r anks (rediscounts secured by United States obligations not included). member banks S c h e d u l e 7 .— 15 days or iess. 16 t o 30 days, j 31 to 60 days. 61 to 90 d a y s .: Over 90 days. Total. I January................ February............. March.................... April...................... M a y ........................ Juiie....................... J u ly ............................. August........................ Septem ber................ October....................... N ovem ber................. December.................. $35,250.00 1*11,317, 712.73 *4,940,842.86 $2,077, 970.58 ;$2,306,021.32 *1,957, 627.97 40,000.00 I 12,152, 401. 79 8,631,816.10 . 496, 505.97 1,466,247.40 1,517, 832.32 5,365,867.56 1,136, 779.20 3,097,966.76 2,414, 969.69 i 36,259.43 i 12,051, 842.64 23,310.92 8,850, 606.20 447, 721.32 1,454,916.12 2,840; 466.89 ; 4.084.190.95 1,300, 405.7S 2,145,837.92 2,527, 223.11 ! 138,342.33 1 9,176, 809.55 3,065,000.41 19,959.52 ! 11.7S3, 422.31 1,645, 681.67 2,519,039.94 3,985. 465.44 ! 3,613,275.74 54,742.18 20.491, 376.32 5,613,633.65 3,123, 510.93 5,092,147.32 6,607, 342.24 : 72,132.78 7.446, 504.30 1,621, 607.80 1,913,107.87 1,535, 285.90 ; 2.304.369.95 2.700.00 10.301, 663.09 3,565.719.54 1, 221, 534.56 2,597,690.17 2.914, 018.82 ! 8,206, 295.36 1,462,043.39 1,052, 532.83 3.268,778.71 2,374. 837.39 1 48,103.04 9,322, 444.70 2,905,282.20 1,276. 678.09 2,287,310.10 2,742, 662.44 ; 110,511.87 995,882.27 11,796, 229.72 i. 05 1,979.526.47 4,993, 084.08 927 2,900,648.85 T o ta l............... 48,452,691.20 16,328,016.78 30,128,590.10 36,410,816.29 1,577,194.34 |132,897,30S. 71 T c ia i E o r n n a A s s e t s a t c l o s e c f B u sin ess ea c h Friday. ZOO ISO Wo 180 no te c 150 140 130 }20 no 110 Dollar a. of 70 60 80 SO 40 30 30 20 ZO !9!7 IQ Oct Ch a m c . Dec. of D olla rs. 90 MiUions too Millions ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.. A X X C A L REPORT OF FEDERAL RESERVE BAXK OF BOSTON. 150 Bills Rediscounted and Member Bank Collateral Notes h eld /SO o f 8usin\ 140 130 130 120 120 UO UO 100 100 90 90 80 80 70 70 60 60 SO SO 40 40 30 30 20 ao 10 C b a k t D. of Dollars. 140 Millions M illions of D ollars, fo s e 31 32 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. S c h e d u l e 8 . — Acceptance liability o f national banks in New England at date o f Comp troller's calls 1917-18. 1918 Mar. 4..................................................................$58,373,000 May 10................ ............................................... 49,704,000 June 29 ............................................................... 48,599,000 Aug. 31............................................................... 48,744,000 Nov. 1 ................................................................ 57,937.000 Dec. 31................................................................ 59,759,000 Mar. 5 ................................................................ 524,372,000 M a v l ................................................................ 25,459,000 June 20.............................................................. 33,147,000 Sept. 11............................................................. 35,082,000 Nov. 20.............................................................. 44,500,000 Dec. 31.............................................................. 49,558,000 S c h e d u le 9 . —Acceptances. Foreign acceptances purchased. Number. 1917 Number. Amount. 1918 ! 1917 January----February. . M arch......... A p ril............ M a y ............. June............ J u ly ............. A u gu st____ September. October----Novem ber. Decem ber.. 90 187 163 17 233 1S5 67 228 409 97 373 123 150 ; $2,522,546 291 ■ 4.461,805 245 ; 4,803,854 ! 786,937 309 : 9,077,342 16-5 : 6,153,140 2.300,664 272 6.068,808 219 10.654,363 602 4,179,893 474 7,831,447 400 3,891,621 Total 2,172 3,538 ! 62,732,420 1918 201 210 Number. January............................ February......................... March............................... April................................. A ugust.............................. September...................... October............................ N ovem ber....................... December........................ 24 101 8 50 45 T otal..................... 228 1917 ! 1918 $525,200 377,598 2 3 250,000 258,670 $229,553 2,020,406 60,733 499,881 597,664 ! | ; : ; 54 | 3,408,237 j 71 54 79 266 $2,219,399 3,177,431 3,332,815 3.263,609 5,226,176 3,227,240 4,301,286 7,461,252 8.492,786 11,607,466 11,314,325 7,599,840 766 2,763 25,386,532 71,223,6*5 57 70 | 22 1 49 102 Bankers’ accept ances to create dollar exchange purchased. , 1917 $515,292 800,416 353,407 458,149 1,140,471 2,390,740 1,102,781 1,253,165 3,958,850 1,400,099 3,505,018 8,508,144 20 ; 1918 ; Am ount. 150 102 194 124 148 269 285 437 533 329 121 N u tn -!1 ber. j Amount. 9 40 i 20 ; 19 8 125,451,391 | Amount. j 1918 j 1917 ! 1918 $5,782,302 8,021,246 7 ,793,672 5,675,454 8.060,987 5,910,878 7,666,570 11,280,146 11,191,263 21,493,691 17,520,488 15.054,694 Foreign trade acceptances pur chased. 1917 Domestic acceptances purchased. 1918 ........... Trade ■ Foreign accepttrade ac^ ances ! ceptances discounted. : discounted. Amount 1 ! Am ount. 1918 1918 $1,681,760 623,541 1,441,003 287,007 901,692 i . . . . . . . . . . . . . . . . . . . . 1,053,260 tOC QOJ. 525,841 oui, i 279,430 26 : $1,252,000 12 j 800,000 1 1 50,000 541 833 ! 498,977 j 454,511 j 445,041 590,153 116,565 11.600,898 3> ; 2,102,000 9,057,453 | 1,229,679 i 1 In addition, $398,340 of domestic trade acceptances were purchased during August. 4Qk Gfi7 ANNUAL REPORT OP FEDERAL RESERVE BANK OF BOSTON, Acceptances held a t cfose o f business each Friday. 33 75 70 65 60 60 50 50 45 45 Mi (dons 40 Mt ((ions 35 30 25 25 20 15 iO 5 1917 Feb. Mar. Apr. May 1 June July Ch ar t E . Sept Oct Nov. Dec. 0 of Do ffar s. of I>o(fars. 55 34 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. Schedule 10.— All banks granted permission to accept up to 100 per cent o f their capital and surplus. May Apr. Apr. Mar. June Dec. M ay Jan. July Apr. Nov. Oct. July Nov. July Dec. Jan. May Oct. Dcc. 8,1918 14,1915 24,1918 30,1916 7,1915 11,1917 25,1916 27,1916 28,1916 11,1918 13,1917 5,1917 1,1918 6,1917 12,1917 17.1918 25.1918 4,1916 27.1917 16.1918 Location. Name. Date granted. Beacon Trust Co ................................................ Boston, Mass. Do. First National Bank .................................... Do. Fourth Atlantic National Bank............................................................. Do. Merchants National Bank. .................................... Do. National Sha ^mut B ank................................................ ......................... Do. National Union B ank................................................................................. Dp. Old Colony Trust C o .. ............................................................................. D©. Second National Bank............................................................................... Do. Webster & Atlas National B ank............................................................ Dedham National B ank............................................................................. Dedham, Mass. Massasoit-Pocasset National B ank........................................................ Fall River, Mass Safety Fund National B ank..................................................................... Fitchburg, Mass. Phoenix National Bank............................................................................. Hartford, Conn. Mechanics National Bank......................................................................... Ne v Bedford, Mass. Blackstone-Canal National Bank........................................................... Providence, R. I. Merchants National Bank......................................................................... Dp. Springfield National Bank........................................................................ Springfield, Mass. Merchants National B ank...... ............................ Worcester, Mass. Hartford Aetna National Bank.............................................................. Hartford, Conn. Providence National Bank...................................................................... Providence, R. T. Sc h e d u l e 1 1 .— Reserve position on first of each month. [000 omitted.] ........... Date. January.................................. .......... February............................... . .. : M arch..................................... ............ A p ril........................................ .......... M ay.......................................... .......... .......... Ju ly.......................................... .......... A u gust................................................1 September............................. October.................................. ............ November.............................. .......... December.............................. .......... : Net deposits. ! Federal Reserve Total notes in combined Required reserve. circula liability. tion, net. $79,306 $73,602 76,256 76,434 83,041 87,273 93,416 93,047 98,749 102,264 101,349 [ 101,603 80,819 113,437 89,666 127,571 138,783 95,283 151,765 100,105 152,460 110,453 154,007 $152,908 152,690 170,314 186,463 201,013 205,952 194,256 217,571 230,695 247,049 252,565 264,460 | i ! ! ! [ Total reserve. $57,197 $86,132 57,262 i 92,886 63,973 i 91,455 69,914 118,715 75,467 136,117 77,313 143,790 73,661 123,703 82,545 113,680 87,682 129,624 94,055 132,201 96,020 109,166 100,261 119,385 Excess { Per cent reserve, j reserve. | ■ $28,935 35,624 27,482 48,801 60,650 66,477 50,042 31,135 41,942 39,146 13,146 19,124 i I ; : S 56 61 54 64 68 70 64 51 55 54 43 45 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. Ch a r t F. 35 36 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. C old R e se rve a t c l o s e o f B u sin ess each Friday. J5Q 150 140 140 130 130 Millions of Dollars. IZO I/O 110 100 100 90 90 mrL 80 1918 80 70 60 60 50 50 40 1917 40 30 30 20 20 JO Feb. Mar. June C hart G. Sept. Oct. Nov. Dec. ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. 150 R e s e r v e accou n t o f Member Banks a t c lo s e o f b u sin e s s each Friday. 37 ISO HO 130 130 WO 90 90 80 80 Millions 70 60 SO 50 40 40 30 30 ZO 10 Feb. May June July CHART H. Aug. Sept Oct Nov. Dec. JO WO 'SJBfJOQ UO S U O t jj i f t 120 UO of D o l la r s . 120 38 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. S c h e d u le 1 2 . — Monthly operations o f gold settlement fund. (_000 omitted.] ' [ Total credits.1 Total debits.1 Month. Gained through weekly settle^ ments. Loss through weekly settle ments. Net gain for m onth. $276,622 194,318 216,038 269,505 300,857 259,507 328,893 339,433 276,077 468,274 380,351 477,126 $30,284 17,866 19,333 16,658 8,005 3,700 1,957 41,434 7,944 14,104 24,688 42,474 $24,221 7,538 I 2,373 2,148 13,533 7,725 31,730 ; August September....................................................... October .......................................................... November....................................................... ......................................... December $270,559 183,990 199,078 2.54,995 306,385 263,532 358,666 297,999 289,366 506,839 383,406 434,652 Total..................................................... 3,749,467 3,787,001 228,447 190,913 January........................................................... February......................................................... 1 Does not include direct transfers. S c h e d u l e 1 3 . — New $6,063 10,328 16,960 14,510 2 5,528 - 4.025 2 2 y ,773 41,434 213,289 2 38,565 2 3,055 42,474 21,233 52,669 27, 743 37,534 2 Loss. national banks taking out stock in the Federal Reserve Bank. Mattapan National Bank, Boston, Mass..................................................................................................... Feb. 19,1918 Manufacturers National Bank, Cambridge, Mass.................................................................................... Apr. 3,1918 State National Bank, Lynn, Mass.................................................................................................................June 1,1918 S c h e d u le 1 4. — Member City. trust companies. Name of bank. Date ad mitted. M A IN E . Bangor................................ Portland............................ Merrill Trust C o ... Fidelity Trust Co. Mar. 14,1918 Mar. 18,191# Menotomy Trust Co.................. American Trust Co.................... Beacon Trust C o........................ Commonwealth Trust Co.___ International Trust Co............ Liberty Trust Co....................... Metropolitan Trust Co............. Old Colony Trust Co................ State Street Trust Co................ U . S. Trust Co............................ New England Trust C o........... Charles River Trust Co............ Harvard Trust Co...................... Fitchburg Bank & Trust Co. Hadley Falls Trust Co............. Merchants Trust Co.................. Security Trust Co...................... Newton Trust Co....................... Norwood Trust Co..................... Naumkeag Trust Co................. Winchester T m si C o .............. Worcester Bank & Trust Co.. Nov. Sept. Jan. Feb. June Mar. Dec. Aug. Dec. Apr. Dec. Dec. Mar. Feb. Jan. Feb. Oct. N ov. Aug. Oct. May Dec. Industrial Trust C o.......................... Rhode Island Hospital Trust Co. Union Trust Co.................................. Nov. 9,1917 Mar. 13,1918 Sept. 24,1918 Manchester Trust Co.................... . Union & New Haven Trust Co.. Colonial Trust C o............................ New Britain Trust Co.................. Dec. 30,1918 Dec. 15,1917 Apr. 6,1918 Aug. 21,1918 M ASSACHU SETTS. Arlington.......................... Boston................................ Cam bridge.. Fitch burg... H olyoke____ Law rence... L y n n ............. New ton........ Norwood___ Salem............ W inchester. W orcester... 9,1918 4.1917 15,1918 12.1917 9.1917 12.1918 7.1917 24,1915 26.1918 9.1918 14.1918 11.1917 6.1918 25.1917 19.1918 27.1918 14.1918 6,1917 14.1917 28.1918 29.1917 26.1917 RHODE ISLAND. Providence.. CONNECTICUT. South Manchester........................ New Haven.................................... Waterbur^r...................................... New Britain.................................. ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON* S c h e d u l e 1 5 .— 39 Member trust companies compared with total trust companies in this district: Member trust companies. Number. Capital sur plus.2 Deposits. Total trust companies.1 Number. Ca^ j ur* ! Maine........................................ New Hampshire................... Vermont.................................. Massachusetts...................... Rhode Island......................... Connecticut............................ 2 $1,731,000 $16,789,000 22 3 4 43.915.000 17.019.000 3,306,000 385.395.000 134.214.000 14,675,000 50 14 36 100 13 64 Total................. 31 65,971,000 551,073,000 277 | 130,220,000 j 1 Figures from 1918 edition “ Trust companies.” S c h e d u l e 1 6 . — Banks | $10,148,000 i j 2,117,000 1 4 ,83S, 000 ! 75,757,000 i \ 20,557,000 i | 16,803,000 | Deposits. $79,784,000 15,769,000 50,164,000 547,032,000 145,733,000 108,195,000 946,677,000 * Includes undivided profits. granted fiduciary powers under section 11 (k) o f the Federal Reserve A ct Date. Name. Location. ! Jan. 21 Jan. 28 Feb. 9 Apr. 24 D o .. . D o ... June 3 July 27 Aug. 20 National Bank of Bellows Falls....................................................................... City National B a n k .............................................................................................j County National B ank.............................., ........................................................ i First National B ank............................................................................................. Springfield National B ank................................. ............................................... Phoenix National Bank............................ .......................................................... Blackstone National B ank................................................................................. Peoples National B ank........................................................................................ National Union B ank...................., .................................................................. Bellows Falls, V t. Berlin, N . H Bennington, Vt. Reading. Mass. Springfield. Mass. Hartford, Conn. Uxbridge, Mass. Barre, Vt. Boston. Mass. granted fiduciary powers under section 11 (k) o f the Federal Reserve A ct, as amended by the act o f Sept. 26, 1918. S c h e d u l e 17. —Banks Date. Dec. 4 D o. D o. Do Do Do Dec. 6 D o ... D o. D o ... D o .. . D o ... D o ... D o ... D o ... D o ... D o ... D o __ D o ... D o ... D o .. . D o ... D o ... Dec. 12 D o .. . Location. Name. First National Bank ........................................... ................... * ............. Webster & \tlas National Bank^ . . . - - ................................................ Waterbury, Conn. Hartford,'Conn. Waterbury, Conn. New Haven. Conn. Hartford, Conn. Wallingford. Conn. Boston. Mass. Worcester. Mass. Salem, Mass. Boston, Mass. Fitchburg, Mass. Turners Falls. Mass. Gardner. Mass. New Bedford, Mass. Boston, Mass. Do. Lynn. Mass. Portland, Me. Leominster, Mass. Springfield, Mass. Boston. Mass. Lawrence, Mass. Marlboro, Mass. Springfield, Mass. L ynn, Mass. 1 Supplementary application for additional fiduciary powers. 40 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. S c h e d u l e 1 8 . —Amounts due to membert banks and rediscounts for member banks, by States. Reserve accounts. M a in e........................................................ . N e.v H a m p sh ire............................................. V erm o n t................................................... Massachusetts........................................... Rhode Island............................................ Connecticut.............................................. Total....................................................... Dec. 31,1917 Dec. 31. 1913. $3,317,195.05 2,203,33*.09 1,558,530.24 63,691,658. 07 5 526,049.59 6,54 i, 638. 54 §4,155,555.98 2,265,575.13 1,560,675.31 76,35*,009. 76 9,272,003.10 8,188,378.02 , 82,841,415.58 ; 101,800,197.30 i Ratio of reRediscounts. discounts to reDec. 31, 191S.1 serve accounts, j Dec. 31,1918. $1,126,936.85 447, 057. 80 605,506.90 9,131)642.01* I i ; 146,850.23 1 373,462.57 27.11 19. 73 38. 79 11.95 12.36 4. 56 12,834,456.44 12. 12 i I i Does not include rediscounts secured by U nited States obligations or member banks’ collateral notes. S c h e d u l e 19. —Reserves o f national banks in New England as reported by Comptroller o f the Currency. Total reserve. Dec. 31, 1917.. Mar. 4, 1918... May 10, 1918.. June 29, 1918.. Aug. 31, 1918. Nov. 1, 1918.. Required reserve. $59,948,000 1 57.001.000 61.274.000 56,392, 000 59.032.000 63.115.000 $.55,557,000 55.866.000 56.021.000 54.900.000 59.041.000 63.472.000 Excess reserve. $4,391,000 1.135.000 5.253.000 i 1,492,000 «9,000 357,000 1 ; i 1 i 1 Deficit. S c h e d u l e 2 0 .— Condition o f national banks in New England on dates o f comptroller’s calls, 1918. [000 omitted.] ! Date. | ! Net amount X h : reserve is required. Mar. 4................................................ M a y l ................................................ June 29............................................. Aug. 31............................................. N ov. 1............................................... S c h e d u l e 2 1 .— Borrowed i L° ans- $696,469 697,779 705,450 I 734,418 786,518 Federal Reserve i e^ ewhere, Bank, including including rediscounts, rediscounts. $661,860 714,788 735,411 694,072 797,579 $73,467 : 64,741 33,068 \ 43,138 112.878 $2,890 4,186 5,140 4,132 1,877 Total borro vings. $76,357 68,927 38,208 47,270 114,755 i Ter cent ; borro'.ved j at Federal i Reserve Bank. i i | i ; 96.2 93.9 86.5 91.2 88.4 Comparison o f items reported by member banks in selected cities, 1918. [000 omitted.] United States se curities owned. Number of banks. j! J a n .1 ................................................ Feb. 1 .............................................. Mar. 1........................................................ July 5........................................................ Aug. 2 ....................................................... Sept. 6 ....................................................... Oct. 4 ......................................................... Nov. 1 ....................................................... Dec. 6 ........................................................ 36 38 38 38 : 41 42 42 42 i 42 44 44 44 $28,426 1 31,978 .53,693 47,335 601543 55,943 75,875 101,476 151,322 120,530 100,816 Loans se cured by United States se curities. 544,142 40,800 31,613 34,528 33,.582 52,816 52,346 i 47,228 1 40,029 40,475 116,826 110,075 Other loans. $659,419 701,823 691,976 728.383 772,229 771,650 784,842 776,760 762,252 768,186 784,349 Net de mand de posits. $528,147 603,074 f>02,747 611,766 662,882 666,094 650,476 658,741 659.755 683,727 682,006 696.756 Reserve. $56,722 ('>0,214 58,993 61,727 66,720 63,158 61,931 65,967 63,782 72,065 66,732 74,897 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. 41 Certificates o f indebtedness sales and payTnents. S c h e d u l e 2 2 .— T H IR D L O A N C E R T IF IC A T E S . Date. Rate ; (per i cent). | Due. J an .22.......................... Apr. 22.. F e b .8............................ May 9. . Feb. 27.......................... May 28.. Mar. 20.......................... June 18. Apr. 10.......................... July 9 .................. Apr. 20.......................... July 18................ T otal................. Allotment to Total issued. sell. 4 4 4V 4V 41 ! Paid for by credit. Number of days before final with drawal of de posits. 42 46 41 33 27 32 330,000,000 35,030,000 33.000.000 33.000.000 35.000.000 35.000.000 520,025,000 29.134.000 35.369.000 53.690.000 39.731.000 36.408.000 *17,58% 000 24,8.0,000 30.059.000 49,2P4,500 36.084.000 27.167.000 201,000,000 214,417,000 185,024,500 j F O U R T H L O A N C E R T IF IC A T E S . June 25................. Julv 19.................. July 23.................. . . . . j Aii” o Sept. 3 .................. ----Sept. 17............ ----Oct. 1.................... Nov. 7 .......................... Nov. 21........................ ............. J an .2 ............................ J a n .16.......................... i I 1 Total......... *64,591,000 4t 1 *C8,000,000 65,000,000 I 56,2<3,500 4V 43,300,000 | 48,267,500 43,300,000 ! 49,509,000 43,300,000 j 57,424,000 52,000,000 ! 54,10,000 4* 43,300,000 , 50,3'. 8,500 4* 358,200,000 $58,593,000 51, 922,000 45,165,000 46, 100,0 ¥) 52,88.5,000 51,103,000 47,010,000 381,152,500 24 23 37 30 28 26 25 352,784,000 1 ! F IF T H L O A N C E R T IF IC A T E S . 4i Dec. 5............ Dec. 19.................... May 20.......................... 4* *52,000,000 ! *47,901,000 ( *44,200,000 I 43* 300]000 j 45] 010[ 500 j 4 4X>!000 j Total................. 95,300,000 | 92,911,500 25 20 84,600,000 !................ 1918 T A X C E R T IF IC A T E S . Jan. 2 .............. Mar. 15.................. 71 41 38 43 34 $12,025,500 : §10,353,000 88,728,0JO i 72,700,000 92 35 . May 15.................. 1 ! Total. . 16,103,500 *13,219,000 8.790.500 7.535.000 6.735.500 < 4, m , (xx) 6.071.500 j 4.051.000 24,5.8,000 22,238,000 . _j 62,339,000 | 51,907,000 ______________ 1919 T A X C E R T IF IC A T E S . An?. 20......... Nov. 7 ........... 4 !.......................... 4* ,.......................... ! Julv 15.................. Total .......................... ! 100,753,500 ; Sch edule 1 83,053,000 23.— Distribution by issues o f certificates o f indebtedness sold. T H IR D L I B E R T Y L O A N . Dated. ! N um ber. Jan. 22......... Feb. 8 F e b .27 Mar. 2 0 ........ Apr. 10 Apr. 22. ! Per 1 cent NumAmount. of i ber. issue. 109 *12,131,000 261 16,902,000 247 20,681,500 232 36,031,500 168 27,757,000 184 22,669,500 T otal. 1 350 136,172,500 Other banl s and indi- | ^ iduals. ! Trust companies. National banks. j 1 Per ! : cent Num j Amount. Amount. ber. of issue. 61 1 45 : $7,407,000 58 111 ! 11,072,000 ; 140 1 14,130,500 60 115 | 16,842,000 i 67 90 1 10,768,000 ! 70 62 , 104 ! 12,253,000 1 64 » 193 72, 472,500 37 38 39 31 27 24 : Per ! cent Numof : ber. Am ount. issue. | 14 ! *487,000 23 ; 1, 160,000 557,000 23 30 I 816,500 | ! 1,206,000 ] 21 1 1,545,500 25] 34 j 1 82 5,772,000 Total. 2 i 168 '$20,025.000 4 395 29,131,000 1 1 410 3 ), 363,000 ‘J : 53,690,000 3 ;! 279 3», 31,000 4 1| 313 33,468,000 i 377 2 !j 1 625 214,417,000 i 42 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. 23.— Distribution by issues o f certificates o f indebtedness sold—Continued. S c h e d u le FO U RTH L IB E R T Y LOAN. 1 Trust companies. National banks. ! Other banks and indi viduals. Total. i Dated. Num ber. June 25.. . July 9 ........... July 23 ......... Aug. 6.......... Sept. 3 ......... Sept. 17........ Oct. 1 ........... | Amount. Per cent N um ber. of issue. Amount. i Per Per cent N um -; Amount. cent N um - Am ount. , of I ber. ber. of issue J issue. 1 35 $2,227,000 304 $39,817,500 62 162 $22,545,500 35 30,953,500 24,191,000 26,178,000 32,199,000 28,702,500 25,074,000 55 51 53 56 53 50 162 138 157 161 145 123 37 45 40 37 i 41 47 310 286 296 290 294 234 Total - |1 381 207,115,500 ! J_ _ _ _ _ _ ' 54 21,064,500 22,191,500 19,900,500 21,421,500 22,425,500 23,744,000 j 1237 153,293,000 ; i 40 54 58 90 102 86 51 si 8 4,255,500 1,885,000 3,430,500 3,803,500 3,582,000 1,560,500 4 7 7 6 3 501 $64,590,000 526 56,273,500 580 48,267,500 543 49,509,000 553 57,424,000/ 525 54,710,000 418 50,378,500 6 i 1 738 381,152,500 i 120 20,744,000 1 Actual number of different subscribers. S c h e d u le 24.— Report o f payments by credit and withdrawals since Jan. 1, 1918. Balance. January___ February. . March......... April............ M a y ............. June............ Ju ly............. August........ September. October___ November. December.. $64,000,000 52.000.000 57.000.000 81.000.000 177,500,000 $78, 500.000 Jan. 50, 000.000 Feb. 36, 000,000 Mar. 105, 000,000 Apr. 92, 000,000 May 200,000,000 166, 500.000 June 144.000.000 j 000.000 July 79,000,000 j 109, 000,000 Aug. 109.000.000 i , 000,000 Sept. 318.000.000 i 143, 000,000 Oct. 141.000.000 ' 296, 000,000 Nov. 126.000.000 177. 000,000 Dec. Jan. 1,548,500,000 1,586,000,000 , 212 121 T o ta l.......................................................... S c h e d u l e 2 5 .— Redeposits 1.1918 1.1918 1.1918 1.1918 1.1918 1.1918 1.1918 1.1918 1.1918 1.1918 1,1918 1.1918 1.1919 $66,500,000 52.000.000 54.000.000 75.000.000 51.000.000 136,500,000 170.000.000 102. 000.000 72.000.000 60.000.000 235,000,000 80,000,000 29,000,000 o f internal-revenue funds, RT5DEPOSITS. June 11,1918............................................................................................................................................................... June 12,1918. . . ......................................................................................................................................................... June 13,1918 ............................................................................................................................................................... June 14,1918............................................................................................................................................................... June 1 5 ,1 9 1 8 ............................................................................................................................................................ June 17, 1918 ............................................................................................................................................................... June 1 8 ,191S............................................................................................................................................................... June 19, 1918 ............................................................................................................................................................... June 20,1918............................................................................................................................................................... June 21,1918 ............................................................................................................................................................... June 22,1918............................................................................................................................................................... June 24,1918 ............................................................................................................................................................... June 25,1918............................................................................................................................................................... June 26,1918......................................................................................................................................................... .. June 27,1918................................................................................................................................................................ June 28,1918 ............................................................................................................................................................... June 29,1918............................................................................................................................................................... Juh' 1 and 2, 1918...................................................................................................................................................... Julv3, 1918 .................................................................................................................................................................. $3.755 600 4,747,000 6,531,000 10,302,000 19,160,000 48,471,400 17 426,000 6,755,000 3,996,000 4,840,000 857,000 2,220.000 1,076,000 14,465,000 1,134,000 785,000 1,505,000 340,000 57,000 148,423,000 WITHDRAWALS. Advance paym ents.................................................................................................................................................. June 27 .......................................................................................................................................................................... July 2............................................................................................................................................................................. July 3.............................................................................................................................................................................. July 9.............................................................................................................................................................................. July 11............................................................................................................................................................................ $1 113,000 28,706,400 29,551,600 29,665,000 26.724,150 32,662,850 148,423,000 of M illions of Dollars, 43 Millions D o lla rs , ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. C hart I. 44 ANNUAL REPORT OP FEDERAL RESERVE BANK OF BOSTON. Due to Treasurer o f the United S ta tes at- Millions Dollars. of of D ollars, Millions C b a e t J. ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON* S c h e d u le 2 6 ,— Subscriptions to Liberty loan bonds. Third Liberty loan. Fourth Liberty loan. 1918 1918 Day. Apr. 9 ...................... Apr. 10.................... Apr. 11.................... Apr. 12*................... Apr. 13.................... Apr. 15..................... Apr. 16..................... Apr. 17.................... Apr. 18.................... Apr. 19..................... Apr. 20.................... Apr. 2 2 .................... Apr. 23...... ............. Apr. 24.................... Apr. 25.................... Apr. 26.................... Apr, 27.................... Apr. 29..................... Apr. 30 .................... M w 1 ....................... M iv 2 ....................... M iy 3 ....................... Mav 4 ....................... May 6 ....................... May 7 ....................... May 8 ....................... May 9 ....................... 45 Total. $20,421,600 15.145.600 10.793.700 7,325,500 7,506,4/0 7.449.100 11.691.700 10.743.750 9.152.100 10,155,300 3,319,0.0 9,112,4/0 8,881,3 0 12,356,3 0 10,488,100 12.319.750 17,056,400 12,619,4/ 0 12, 539,450 12,8°3,700 22,200,8/ 0 18,159,8,0 21,917,0/0 21,047,8/0 17,348,4/0 11.001.600 20,800,4/0 S c h e d u l e 2 7 . —Liberty Day. f 20,421,600 35,567,500 46,361,200 53.686.700 61,193,150 68,642.2/0 80,333,950 91.077.700 100.229.800 110,385,100 113.704.150 122,816,600 131,697,950 144,054,300 154,542,400 166.862.150 183,918,550 196.538.000 20?, 077,450 221.971.150 244.172.000 262,331,850 284,248,900 305,296,750 322,645,200 333.736.800 354,537,250 Sept. 30. Oct. 1 . .. Oct. Oct. 3 . . . Oct. 4 . . . Oct. 5 . . . Oct. 7 . . . Oct. Oct. 9 . . . . Oct. 10... Oct. 11 ... Oct. 1 2 ... Oct. 1 4 ... Oct. 1 5 ... Oct. 1 6 ... Oct. 1 7 ... Oct. 1 8 ... Oct. 1 9 ... Oct. 2 1 ... Oct. 2 2 ... Oct. 2 3 ... $44, 290,850 867.300 29, 2/0,8.0 24, 644.300 544,600 24, 157.750 13, 839.150 17, 521,100 21, 413,950 14 942.150 14, 0/0,400 10 683.750 17, 027,8/0 12, 2^4,000 31), 075,9/0 37, 837,7/0 34 988,400 48, 696,9/0 85, 193,0/0 30, 748,0/0 57, 153,700 22, 2... 22, 8..., , $44,290,850 67,158,150 96,409,000 121,053,300 143.597.900 167,755,650 181,594,800 199.115.900 220.529.850 235.472.000 249,522,400 269.206.150 286.234.000 298.528.000 337,603,950 375,441,700 410.430.100 459,127,050 544.320.100 575.068.150 632.221.850 loan subscriptions through Federal Reserve Bank of Boston. Third loan. Size of subscription. $50 to $10,000 ......................................................................... 110,050 to $50,000 . . ..................................................................................... $5.0,050 to $100,000............................................................................................................. $100,0" 0 to $200,000. . ........................................................................................... 4200,050 and over ............................................................................... Total Total. ......................................................................... S c h e d u le 2 8 .— Fourth loan. $189,597,650 50,8^2,800 32.220,0/0 24,219,200 57,607,5/0 $264,402,700 111,497,450 68.348,650 54,750,950 133.222,100 354,537,250 632,221,850 The Liberty loans. Number of subscribers. Subscriptions. State. Third loan. Fourth loan. Third loan. Fourth loan. New Hampshire..................................................................... Vermont........................................................ .......................... Massachusetts......................................................................... Rhode Island. . . . ............................................... Connecticut.............................................................................. <77,259 55,632 41,972 508,401 104,324 164,767 118,270 103,905 62,038 910,228 128,101 325,092 $18,348,100 14,252,000 9,330,7/0 228,329,7/0 28,717,700 55,558,950 $27,694,150 21,979,050 15,315,450 405,354,500 61,350,300 100,528,400 Total............................................................................... 952,355 1.647.634 354.537.250 632,221,850 46 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. S c h e d u le 29.—Liberty loan subscriptions o f principal cities o f New England. Fourth loan. Third loan. ! Estimated number of subscribers, Boston.......................... Brockton...................... Cambridge.................. Fall R iver................... Hartford, Conn.......... Holyoke, H ass.......... Lawrence, Mass........ Lowell, m s s .............. Lynn, M ass................ Manchester, N . H . . . New Bedford, Mass. New Haven, C o n n .. Portland, M:e.............. Providence, R . I — Somerville, Mass___ ; Springfield, Mass............ ...................................................... ■ w aterbury, Conn................................................................. i Worcester, Mass.................................................................... ] S c h e d u l e 3 0 . — Character 201,900 14,144 22,316 18,886 29,780 12.707 40.707 9,712 8,967 15,734 23,315 35,763 25,549 100,619 8,102 338,048 8, U4S 30,497 43,779 Amount. $77,202,500 2.733.500 4,585,725 5,463,950 21,045,250 2.934.500 4.415.500 4.192.350 3.391.550 4.054.500 5,840,800 7.702.550 4,278,850 17,486,450 1,583,700 7.502.500 5.759.350 8,462,400 Estimated numher of subscribers, 139,336 14,315 46,555 16.967 72,286 57.730 85,892 31,266 89,336 11,879 96,652 64,102 58,571 73,029 18,516 88,926 73,141 145,986 Am ount. $139,800,000. 4,817,400 8.800.850 8,931,650 36.422.600 5.836.850 7.402.200 8,354,350 6,476,075 7,386,340 8, 707,550 15.507.600 6,054,550 38,103,300 3,076,000 16,147,350 8.977.200 19,239,150 o f Liberty loan payments. SE CO N D L O A N . Date. B y cash. Total. Accrued interest. Cash sales................... 2 per cent payments N ov. 15........................ Dec. 15......................... Jan. 15.......................... $14,245,150.00 $3,084,100.00 $17,329,250.00 4,055,738.00 5,153,004.00 9,208,742.00 55,630,311.50 170,328,176.50 $40,435,000.00 266,393,488.00 14,183,028.28 59,793,191.55 73,976,219.83 6,397,980.02 35,750,717.02 42,148,697.04 $106,799.83 419,597.04 Total................ 94,512,207.80 274,109,189.07 ! 40,435,000.00 409,056,396.87 526,396.87 T H IR D L O A N . Cash sales.. M ay 9 ......... May 2 8 . . . . July 1 8 . . . . A u g. 1 5 . .. . Total $13,056,150.00 $23,208,900.00 i$13,415,500.00 $49,680,550.00 18.579.541.07 108,941,621.43 ! 43,172,500.00 170,693,662.50 7,851,470.42 36,551,792.35 J 4,911,500.00 49,314,762.77 10.483.010.07 39,176,294.97 |............................ 49,659,305.04 5,671,195.46 i 30)426,761.62 36,097,957.08 55,641,367.02 238,305,370.37 } 61,499,500.00 355,446,237.39 ! $908,987.39 FO U RTH LO AN. Cash sales.. Oct. 24____ Nov. 21___ Dec. 19____ Total $14,694,150.00 $53,235,500.00 42,556,496.13 214,358,733.87 12,374,479.64 67,543,038.43 8,396,782.16 41,185,043.87 $4,700,000.00 !$72,629,650.00 94,247,500.00 (351,162,730.00 6,985,500.00 86,903,018.07 ............................I 49,581,826.03 78,021,907.93 376,322,316.17 105,933,000.00 560,277,224.10 $323,224.10 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. S c h e d u l e 3 1 .— 47 Transactions during the fourth Liberty loan payments. [000 omitted.] W eek ending, 1918— ! Total 1 ; pay- | Redet ments j posits ! onac- ! with ^ PayIcount of S quali- ; ^ |Liberty! ’ fled Trans fers out of dis trict jt ific a t e s . mby Treas ury. Member banks L° ^ s ! W ith Certifi reserve redis- dr*™ »,s cates ac cashed. counts, counts, ; lo a n , d e p o s i- t n e a te s in- i tines in crease, j tanesi a n d c e r - 1 ta r ie s . ; crease. Oct. 18..........................1 #20,900 Oct. 25......................... ! 337,800 N ov. 1.......................... | 29,000 N ov. 8.......................... 48,500 N ov. 1 5 .,* ...................! 13,000 N ov. 22........................ j 88,800 I $16,400 i 211,500 $96,200 | $44,300 i 14.400 ' 4,500 ! 500 : 42,300 i 9,400 i | 67,500' 6,300 j 72,300 Total.................j 538,000 361,500 107,000 117,100 $7,000 17,500 * 19,100 7,800 2 15,200 $4,200 $24,700 7,000 j 25,900 13,400 35,400 21,800 89,700 19,100 52,800 15,900 92,500 $13,000 23.000 45.000 $9,900 16,000 *20,900 3,200 *7,600 *12,500 3 81,400 I 321,000 j 107,000 *11,900 21,000 19,000 Gain in set tle ment fund through clear ing.1 1,000 24.000 1,000 1 Does not include direct transfers. 2 Decrease. s Rediscounted with other Federal Reserve banks $65,000,000 of this amount. S c h e d u le 3 2 . —Liberty loan conversions. Exchanged into— Issued. 4is. 3$s. Exchanged by other Federal Reserve banks. Outstand ing. First loan interim certifi- j Allotm ent........................... 1*265,017,900 $167,453,400 j $63,828,100 ! Other Federal Reserve I banks................................ ! 2,614,700 $35,582,000 $769,100 35,582,000 769,100 1156,888,750 124.384.450 190.896.450 i- Total.. First 3£s....... First 4s......... Second 4 s .... 267.632.600 267.632.600 73,218,250 408,530,000 167,453,400 ! 63,828,100 ......................j 9,390,150 ...................... I 48,832,800 317,633,550 $878,350 ! 1 Difference between amount issued by this bank and amount presented for conversion. S c h e d u l e 3 3 . —Bond and certificate deliveries. T H IR D L I B E R T Y L O A N . Bond coupons. $ 5 0 .. 100 Total ............................................................ ................................ .................... ..................................... Bonds I registered. Pieces. 1,090,798 409,412 42,282 131,732 5,206 | 5,243 1,684,673 Pieces. 12,531 23,131 4,911 4,573 511 965 57 27 46,706 Certificates of in debtedness. 1918 tax certifi cates. Pieces. PUces. 6,873 34,449 10,674 9,656 1,460 7,075 2,609 3,561 266 14,268 61,918 28,973 48 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. Schedule 33,— Bond and certificate deliveries— Continued. FO U RTH L IB E R T Y LO A N . Bond coupons. Bonds registered. Pieces. 759,725 384,967 42,096 162,838 6,425 8,396 *50. 100. ,, .. 10f000. 500. 1 000 5 000 ,. Pieces. 2,560 4,923 1.159 1,1S5 140 212 1919 tax certifi cates. Pieces. Pieces. 9,237 43,724 2T.938 17,722 1,842 6,794 2.927 4,053 24 50,000. 100 000 1,364,447 Total.. S chedule Certificates of in debtedness. 8 509 374 10,211 92,130 15,990 34.— United States certificates o f indebtedness redeemed from Jan. Dec. S I , 1 9 1 8 . Cash re demption. Jan. 22 to Apr. 22..................... Feb. 8 to May 9 ........................ Feb. 27 to May 28.................... Mar. 20 to June 18.................... Apr. 10 to July 9 ...................... Apr. 22 to July 18.................... N ov. 30 to June 25.................... Jan. 2 to June 25...................... Feb. 15 to June 25.................... Mar. 15 to June 25.................... Apr. 15 to June 25.................... May 15 to June 25.................... June 25 to Oct. 24.................... July 9 to N ov. 7........................ July 23 to N ov. 21.................... Aug. 6 to Bee. 5 (called Nov. 21 )................................... Sept. 3 to Jan. 2 (called $15,099,000 14.444.000 24.402.500 45.549.500 22.229.000 24.759.500 7.804.000 8,10 ,500 4.993.000 2.282.500 1.221.500 9,59 , 000 45.233.500 4 ,575,000 38.098.500 D ec. 19).................................... $3,859,000 $14,271,000 9, t8o, 000 7,974,000 17,ol8,500 11,950,000 $2,218,000 1,566,500 $8,046,500 9.550.500 4.237.500 4.837.500 6,262,000 5,402,000 Total. $21,176,000 28.715.000 35, t-55,000 53.523.500 39.847.500 3 , 709,500 15.850.500 17,(57,000 9.230.500 7,120,000 17.781.500 9.067.000 8.638.000 5,000 705.000 33.713.500 11.560.000 319.000 48.592.500 34.459.000 21.922.500 17.337.500 20.684.000 135.000 1,015,000 885.000 8,797,500 424,000 56.516.500 18.352.500 21,5*. 9,000 8.997.500 424,000 168,490,000 15,721,500 38,960,000 608,522,500 381,566,500 Schedule Govern Tax ment with payments. drawals. For new issues. to 7.483.500 14.998.000 63.015.000 55,^47,000 47.442.500 Sept. 17 to Jan. 16.................... Oct. 1 to Jan. 30........................ Aug. 20 to July 15.................... N ov. 7 to Mar. 15...................... Total.. Bond payments. 1 , 19 1 8 , 200,000 3,784,500 35.— War-savings stamps issued during year 1918. Number of Number of Total thrift war savings amount sold. stamps stamps issued. issued. Boston................................................. Massachusetts (outside Boston). Maine................................................... New Hampshire.............................. V erm ont............................................. Rhode Islm d .................................... Connecticut....................................... Sundries.............................................. 117,279 179,710 141,331 166,109 125,649 177,705 159,265 7 335,884 607,295 454,659 292,279 159,433 443,445 705,705 $5(8,996.51 898, t,86.36 702,120.10 76b,391.04 564.398.28 852,386.21 839.184.29 T otal........................................ 1,067,055 2,998,700 15,192,162.79 i Amount issued by Federal Reserve Bank of Boston. o f $54,685,000 in this district up to Dec. 1,1918. The Treasury Department reports total sales ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. S c h e d u le 3 6 .— 49 Capital Issues Committee. Approved. Number. District opinions rendered: Public service............................................................. Municipal......................................................................... Industrial......................................................................... 4 27 17 Tot^il............................................................... . Central 'toinions rendered: Public service......................................................... Municipal......................................................................... In lustna l......................................................................... 191 | Total.............................................................................. Disapproved. Amount. Number. $276,000 770,775 1,115,225 2 5 48 2,162,000 7 404, 800 49 45 97 5*2,046,971.47 10,377,045.83 99,428,796.67 1 6 21 200,000 1,600,000 28,874,080 161,852,813.97 28 30,674,OS0 Applications withdrawn. i |Number. Public service......................................................................... j M mi ?i^al................................................................................. Industrial................................................................................. I Total.............................................................................. Amount. $34.^00 370,000 ^ ^ f ^ r r e d S tranS Amount. Number. 4 3 15 $4,053,775 2,140,000 5.670,950 22 11,864,725 Amouut. 2 2 $1^0,000 1,150,000 1,330,000 4 ! B lil lin^ o’w i t i m s 'n s t’^ n e l during the war, 43; t*>til, #10,895,200. B n c I)m s f >r ci ntilourposes ippr^vei, 25; total, $9,172,791. Publio-service c;>rp:>rj,tion^n:>tes registered, $43,844,025, S c h e d u l e 3 7 . — Federal Reserve notes issued by Federal Reserve agent. Outstanding on first of month- January......................................................................... February...................................................................... M irch............................................................................ A m il.............................................................................. M a y ..................... June.................. .......................................... Ju ly..................... .......................................... A ugust.......................................................................... September.................................................................... October.......................................................................... November.................................................................... December...................................................................... Issued during month. Retired dur ing month. $5,540,000 177,296,820 9.420.000 80,734,120 7.760.000 88,779,535 11,980,000 95,453,4*5 8,300,000 ............................................ 105,187,950 10,500,000 107.412.340 116.673.340 16,500,000 13,500,000 130,721, H’O 16,000,000 141,664,660 14,010,000 154,957,360 2,640,000 166,709,910 13,900,000 162,337,720 52,102,700 1,374,5C5 1,0^6,050 2,245,5'?5 4,0"5,610 3,239,000 2,452,150 2,556,5 0 2,707,300 2,287,450 7,012,1°0 7,251,390 $3,437,300 8,0*5,415 6,673,950 9,734,465 4,224,390 7,261,000 14,OJ7, £50 10,943,470 13,292,700 11,759,550 » 4,372, lfO 6,648,610 38,390,490 91,689,510 130,080,000 | Total.................................................................. Net increase. * Decrease. S c h e d u l e 3 8 .— Number of Federal Reserve notes issued and retired by denominations. Outstanding Jan. 1,1918. Issued. Retired. Outstanding Dec. 31,1918. Hundreds.............................................. ............................. 2,566,832 4,047,743 689,754 74,987 64,408 5,292,000 4,980,000 2,236,000 70,000 56,000 2,412,092 1,844,266 260,851 18,725 17,341 5,446,740 7 ,1*3,477 2,664,903 126,262 103,067 Total......................................................................... 7,443,724 12,634,000 4,553,275 15,524,449 T venties - - . ................................ .................. 50 ANNUAL EEPOET OF FEDERAL RESERVE BANK OF BOSTON. S c h e d u l e 3 9 . — Inter-district Federal Reserve note movement. Received from— Bank. New Y o rk ___ Philadelphia.. Cleveland........ Richmond___ Atlanta............ Chicago............ St. Louis.......... Minneapolis. . Kansas C ity. . Dallas............... San Francisco. i $27,182,800 2,374,800 2,145,540 1,620,600 622,250 2,219,810 380,400 338,700 450,000 176,500 420,300 $11,453,100 198,800 1,804,570 885,850 127,400 1,202,560 i 23,115 224,200 388,400 i 242,950 252,580 21,660,305 ! 37,931,700 16,271,395 $15,729,700 2,176,000 340,970 734,750 494,850 1,017,250 403,515 114,500 61,600 419,450 167,720 _. T otal. . . Net excess returned. Sent to— I I i ! t i Excess received. S c h e d u l e 4 0 . — Principal items from statement o f selected banks, Dec. 28, 1917, and Dec. 27, 1918. [000 omitted.] I Loans I Net de United Total secured mand All other (Reserve States s United by !deposits Num loans i with certifi- | States United Cash in ! on ber of and 1Federal cates o f1securi- States vault. i which banks. invest- Reserve indebt- j ties bonds j reserve edness. j owned. and cer ments. !I Bank. I is com tificates. puted. Time de posits. Govern ment de posits. j Boston: 191 7 191 8 Outside o! Boston: 191 7 191 8 1 1 14 ...............$14,188 $36,753 $489,467 $46,537 $18,369 $408,104 $28,433 14 $45,921 j 61.172 69,055 462,268 45,727 17,231 449,855 22,227 22 ...............j 14,238 22 14,374 I 34,420 S c h e d u l e 4 1 . — Amount 7,389 16,069 169,952 175,720 10,185 10,346 6,711 7,597 120,043 127,298 $33,767 26,762 48,452 50,117 5,707 7,596 of checks handled by the transit department. [000 omitted.] On other banks in this district. On banks in Boston 1Clearing House, j 1917 January___ February... March.......... April............ M ay.............. June............. July.............. August........ September. October___ Novem ber.. Decem ber.. Total.................................................. $128,625 130,031 168,669 195,460 209,634 269,424 288,942 289,565 264,028 292,272 357,385 353,688 _ 1918 Received from other banks. 1917 1917 1918 1918 ! $63,272 52,326 64,364 67,646 71,096 70,958 74,640 72,286 67,992 83,132 84.105 82,047 $76,733 66,470 91,118 94,130 98,310 100,511 116,980 142,491 132,202 150,409 142,774 142,664 $19,540 17,938 21.788 26,957 32,686 36,389 34,370 34,834 34,079 38,927 41,100 42,845 $44,692 43,562 47,853 54,561 59,995 127,931 75,392 82,741 83,837 126,280 131,608 135,317 2 ,947.723 j 5,588,238 | 853,864 1,354,792 381,453 1,013,764 j I ! j i $341,288 288,249 347,749 405,416 442,529 580,929 501,702 456,349 425,558 612,811 598,042 587,616 ^ Received from Boston banks. ; ! 1 51 ANNUAL BEPOET OF FEDEBAL KESEBVE BANK OF BOSTON. ’ [ S c h e d u l e 4 1 .— Amount of checks handled by the transit department— Continued. On Treasurer of United States. 1917 January........ February - -. March........... April............. M ay............... June.............. July............... A u gu st_____ September. . October........ N ovem ber.. December-.. i | | ' T o t a l. On banks in other districts. 1918 1917 $3,918 2,467 3,950 3,886 3, 111 10,121 21,625 23,867 31,243 39,531 49,831 51,981 $53,693 49,067 62,452 64,188 82,473 89,943 105.785 156.068 108.790 124.663 123.211 147.094 246.197 1,167.427 S c h e d u le 4 2 . — Collateral Total. 1918 $63,589 69,303 86,059 103,066 103,043 125,289 129,308 116,865 95,340 97.404 98,228 93.276 ! 1917 1918 $115,432 84,305 92,665 113,823 101.513 98,339 129,361 115.132 117,629 145,919 122,909 90,160 $278,944 272,065 344,830 397,015 420,236 512,181 548.885 537,417 492,682 551.266 630,649 623,837 $631,838 531.653 641,837 732,118 784,820 997.653 929,220 952.781 868,016 1,160,082 1,118,539 1,102,851 1,180,770 | 1,327,187 5,610,007 10,451,408 department— Coupons cut. Number Number Am ount of banks. of coupons. of coupons. M ay.............. J u n e.. ......... July.............. August........ September. October-----N ovem ber.. Decem ber.. 257 142 74 73 217 114 307 230 Total. 1,414 S c h e d u le 4 3 .— 62,559 15.941 2,191 1,637 65.150 6,424 37.137 14,530 1651,341 127,297 47,320 43.135 318.607 158,672 708,569 179,257 205,569 2, 234,198 Discount rates. Secured b y United States obligations. Maturities of 15 days or less. Agricul tural and Trade ac live-stock paper, 91 ceptances. days to 6 i months. Maturities of 16 to 90 days. 15 days or less. 16 to 90 days. 3* 3* 4 4 4 4 4 4 4 4 Dec 12,1917 Jan. 7,1918 Apr. 8,1918 Oct. 1, 1918............. .7 / 5 42 4f 4 4* 4£ 4* 5 ; 5 5 ; S c h e d u l e 4 4 .— ; 4 Money rates in Boston; 1918. I January. Demand money............................ Commercial paper discounted: Carrying coupon rate fourth Liberty loan bond, 16 to 90 days. & £• i i i Y February. March. April. - 6-6 6-6 6-6 ; ! 5f-6 5£-6| 5J-6 54-6 5f-6* i ; 5J-6 5J-6 5J-61 5* P ! | : May. June. 5-6 5-6 5-6 5J-6 53-6* 5|—6 53-6} 5f-6 5H H Commercial paper purchased: Acceptances: Indorsed___ Unindorsed. Year m oney____ Town notes......... Loans secured b y obligations— ! V United 31-41 4~H 6 4.75-5.63 4rA\ 6 5.06^5.39 4-5 4-5 ; j 5J-6 I 5* ■r * Sf-6 4 i-4{ 52-4* 4?-4* i 4tV-41 6 6 i 6 5.0 -5.7 4 ! 5.06-5. 72 4.69-5.50 6-6 r * Al—<_* 14n8* AT »i 6 4.43-5.04 States 4-5 4-5 ! 4J-5 4J-5 52 ANNUAL REPORT OF FEDERAL RESERVE RANK OF BOSTON. S c h e d u l e 4 4 . — Money July. Demand money.......................................... Commercial paper discounted: 90 davs or under................................ Over 90 days........................................ Commercial paper purchased: 90 days or under................................. Over 90 days........................................ Bank borrowings....................................... Acceptances: Indorsed................................................ U nindorsed.......................................... Year money................................................. Town notes.................................................. Loans secured by United States obligations................................................ —Continued. rates in Boston, 1918 Septem ber. August. October. Novem ber. Decem ber. 5*-6 54-6 6-6 6-6 6-6 6-6 5^-6 5H> 5}-6 5i-6 5H H 5f-6J 6-61 6-61 6-6* 6-61 4|-6 6-6 5i 6-6 6-6 6-6 £ 6-6J 5* 6-6* 6-6* 51 6-6i 6-6* 5* 4-4* 4-&-4A 6 4.19-4.65 4iV-& 6 4.70-4.91 4tV-4* 6 4.24-4.60 41-5 4|-5 41-5 4-4| 4-4J 4-4 tV 6 4-4.38 a 4.22-5 41-5 S c h e d u l e 4 5 .— 4i-5 6-61 H -6 * 6-61 A A - AA 4tV 4 ^ 44-4A 6 4-4.37 41-5 Bank clearings in New England. [Figures in thousands of dollars from clearing-house cities.]1 1916 January. . . February.. March........ Ap ril.......... M ay............ June........... July............ August___ September. O ctober.. . November. December. Total 774, 1918 1,040,224 952,310 1,099,879 1,060,009 1,076,603 1,056,426 1,041,174 890,888 940,031 1,172,621 1,298,280 1,234,647 237,922 063,847 159,100 199,335 200,624 251,661 308,358 195,002 107,104 374,657 447,019 365,268 1,349, 779 1,108,908 1,288,689 1,414,114 1,619,670 1,720,029 1,588,308 1,481,533 1,306,456 1,751,890 1,650,132 1,631,683 2,477,136 2 ,5 1 875 2,967,1*72 12,863,092 14,90 J, 897 17,911,191 8,026,983 670j 783, 851, 803, 780, 829, 702, 704, 1,008, 1,019, 9,928,097 1917 * As reported in the Commercial and Financial Chronicle. 2 A^ reported to Federal Reserve Board, includes all checks on members of clearing houses, whether “ cleared” or not. S c h e d u l e 4 6 . —Building activity in New England. First half year. 1912 .............................................................................................. 1913........................................................................................................ 1914........................................................................................................ 1915........................................................................................................ 1916 .............................................................................................. 1917 .............................................. .. ............................................ 1918 .................................................................................................... $102,960,000 86.174.000 89.212.000 88.475.000 106,8£0,000 99.950.000 73.142.000 Average.................................................................................... 92,400,000 “ half $68,207,000 113.291.000 82.655.000 74.471.000 74.998.000 109.150.000 125.732.000 Total. ! 1 ! | 1 ! $171,167,000 199,465,000 171,867,000 162,946,000 181,888,000 20), 100,000 198,874,000 81,063,000 j 161,913,000 ANNUAL REPORT OF FEDERAL RESERVE RANK OF BOSTON. S c h e d u l e 4 7 . —Business 53 through the port, of Boston. [000 omitted.] Exports. Janr arv................................................................... February................................................................ March _ .................................................................. Ap ril........................................................................ June......................................................................... July.......................................................................... August.................................................................... September............................................................. October................................................................... November.............................................................. December............................................................... Total............................................................ Imports. ; Excess of imports 1917 1918 1917 $24,193 22,3<-0 19, 707 20,509 18,034 14,882 13,913 17,286 10i815 14,495 13,513 19,141 $20,910 11,294 21,108 22,369 23,889 17,262 20,725 12,936 10,534 19,326 19,257 22,987 $32,419 21,743 21,816 25,810 20,306 21,158 16,415 14,350 14,117 8,033 9,356 26,658 ! $31,656 I 15,965 27,106 i 27,527 t 35,147 37,551 22,611 17, 422 17, 674 25,096 26,243 22,862 $8,226 | $10,746 ‘ 647 4,671 5,998 5,109 5,301 5,1.58 2,272 1 1 11,258 6,276 20,2)2 2,502 1,886 12,936 , 4.486 3,302 7,140 5,770 16,462 14,157 6,986 7,517 i 125 208,878 222,597 235,181 306,863 | 26,303 1918 1917 1918 84,266 1 Excess of exports. S c h e d u l e 4 8 . — Commercial failures in New England.1 1917 1916 . ’ umber. 220 Liabilities. 'Tumber. Liabilities. 1 j 1918 1'umber. Maine................................................ - Tew Hampshire.......................... Vermont.......................................... Massachusetts............................... Rhode Island................................ Connecticut.................................... 63 59 928 113 307 $1,994,616 223,117 602,544 10,326,675 586,464 2,132,970 151 49 48 895 105 319 $1,424,353 380,768 422,831 10,777,064 503,488 8,642,146 272 $1,516,696 243,919 363,240 13,010,340 683,456 4,167,709 Total..................................... 1,690 15,866,386 1,567 22,150,650 1,344 19,885,360 i Figures as reported by R. G. Dun & Co. O 135 38 36 739 Liabilities. 121