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MONTHLY REVIEW
o Ce it a dB s e s Cn itio s
f r d n uin s o d n
Second Federal Reserve District

F d ra E s rv A e t
e e l ee e g n

F d ra E s rv B n , NwY rk
e e l ee e a k e o

Mn yMrk t inJ n
o e a e ue
Ecs rsre o t epinipl Nw okCybns
xes eevs f h r c a e Yr it ak
a e f cut gao n $ ,2 0 0 ,0 0int elat rpr
ft r lut ain r ud 1 0 ,0 0 0 h te at
o Mya der Jn, do pda r plyt alitleoe
f a n aly ue r pe but o t vr
$ 0 ,0 0 0 a t em d o Jn, rf cin t eef cs
6 0 0 ,0 0 t h idle f ue elet g h fet
o Tes r f ac gadino et xcllet n. Fr
f rauy innin n cm a o cios o
t ec ut ya awo , ecs rsre rs t naly
h o nr s hle xes eevs oe o er
$ ,0 0 0 ,0 0int eer pr o t emnh t eh h
3 0 ,0 0 0 h aly at f h ot , h ig ­
etlee snet eer pr o Mrha dt e dopd
s vl i c h aly at f ac , n hn r pe
t a litle oe $ ,0 0 0 ,0 0 o Jn 1. I bt
o t vr 2 0 ,0 0 0 n ue 7 n oh
csst ea o n o ecs rsre o Jn 1 wst e
ae h mut f xes eevs n ue 7 a h
s a s inmr t a aya. A t e acma y g
mllet oe hn er s h co pnin
d ga inict s t e vlu e o m br bn ecs
iar m d ae, h o m f e e ak xes
m
rsre hs be af ce b Gvr mn f ac g
eevs a en fet d y oen e t innin
oeaios inec o t e rcn t x pr d, b t t e
pr t n ah f h ee t a eios u h
rdcio at ibt b t t a fat r ws lagr t is
e ut n tr uale o ht co a r e h
mnht a ee bf r, a Tes r blacs in t e
ot hn vr eoe s r auy a ne h
Rsr eBns rahdanwh hpin a mr t a
eev a k ec e e ig o t t oe hn
$ ,4 0 0 ,0 0
1 0 ,0 0 0 .
Tepinipl cueo t isrdcio inm brbn
h r c a as f h e ut n e e ak
m
rsre adi ces inTes r dps s o Jn 1
eevs n nrae r auy e oit n ue 5
wscs py e t fo nw oen e tsc r ie, wic
a ah amns r e Gvr mn euit s h h
a o ne t $ 7 ,0 0 0 in t is d t ic a d naly
mut d o 4 5 0 ,0 0 h isr t n er
$ 0 ,0 0 0 fo t e cut y a awo . I cm t x
9 0 0 ,0 0 r h o nr s hle no e a
cllet n adohr Tes r rcips inluin t e
o cios n t e r auy ee t, c d g h
rt e e t o pe re sok in bns hld b t e
eirmn f r fer d t c
ak e y h
Rcnt ut n F a c Cr oaio , s bt nia
eo sr cio inne opr t n usa t lly
ecee ineet py e t b t eTes r adohr
xedd t rs amns y h r auy n t e
Gvr mn d bre e t.
oen e t is usmns
O t eohrhn, t ehaygldinlo dr gt e
n h t e a d h ev o f w uin h
f s t re wes o Jn t ne t i ces m br
irt he ek f ue e dd o nrae e e
m
bn rsre, c ielyinNwYr , a dof e t sm
ak eevs h f
e ok n fst o o e
et n t ewhr wlso fu d b t eTes r . Gld
xe t h it da a f ns y h r auy o
rcipsa t ePr o Nw okdr gt efo rwes
ee t t h ot f e Yr uin h u ek
e ddJn 2 a o ne t a poimt ly$ 0 ,0 0 0 .
ne ue 4 mut d o pr x ae 2 0 0 ,0 0
Tismvmn, hwvr cae a t ee do t et ir
h oe e t o ee, esd t h n f h h d
we o Jn.
ek f ue
Vt rn A j se Sric Bns
ee a s dut d ev e od
A r Jn 1, a r p rac mlaio o ecs
fte ue 5 a id ecu u t n f xes
rsre o m br bns oc re , de vr lagly
eevs f e e ak curd u ey r e
m
t t ecs in o Vt r n Ajut dSric bnsad
o h ah g f eea s d se ev e od n
t ecek isudt vt r n fo t eoda onspyb
h hcs s e o eeas r h d mut aale
ina d io t t ebns wic wr isudin$0uit .
dit n o h od, h h ee s e 5 n s
I t eFdr l Rsr eBn o NwYr alag saf
n h e ea eev a k f e ok r e t f
hdbe wr in udrpes r fo anme o w k
a en ok g ne rsue r u br f e s
e
t pe aet eAjut dSr ic bnsadc ek f o
o rpr h d se ev e od n hcs r m
liss crif d b t e Vt r n Am isr t n t t e
t et ie y h eea s d in t aio o h
Tes r d brin ofcr ad s ila saf wr
r auy is us g fi e, n im r t fs ee



Ju 1 13
ly , 96

ogn e inec o t eohr Fdr l Rsr e Bns
r a izd ah f h t e e ea eev a k
a dint eTes r Dprmn a Ws int n I t is
n h r auy e at e t t ah go . n h
d t ic oe 4 0 ,0 0 bns wr incibdwh t e
isr t vr ,0 0 0 od ee sr e it h
nm o aot 3 5 0 vt r n a d pe ae , wh
a e f bu 8 ,0 0 eea s n rprd it
s
cek fo t e oda o ns fo milin t vt r n.
hcs r h d mut, r a g o eea s
Teblko t eebnsadcek wr ra yfo d ­
h u f hs o d n hcs ee ed r is
t ib t na ds nt t ePs Oi eo o bf r Jn 1,
r uio n e t o h ot f c n r eoe ue 5
f
s t a t e cu b d t ibt dpo plyt t evt r n.
oht hy old e isr ue r mt o h eeas
A lag pr o t e c ek fo od a ons wr
r e at f h hcs r d mut ee
cs e wh afe dy, a dwh awe cs py
ahd it in w as n it in ek ah a­
m t o c ek isudfo t erdmt no Ajut d
e s f hcs s e r h e e pio f d se
n
Sr ic bnsrahdadilyvlu eo 2 t 2 m n
ev e od ec e a o m f 0 o 5 illio
dllas int is d t ic a dao n 10 m ndllas
o r h isr t n r ud 0 illio o r
fo t e c ut y a awo , a e wic t ee ws a
r h o nr s hle ft r h h hr a
ga ul dc e Tee py e t , t gt e whohr
r da elin. hs amns oehr it t e
Gvr mn d bre e t, hdt e ef c o rdc g
oen e t is usmns a h fet f e uin
Tes r blacs int eRsr eBns r p ly Te
r auy a ne h eev a k a id . h
cs in o Ajut dSr ic cek adbns rs lt d
ah g f d se ev e hcs n od eue
inas bt nia t o g poalyt moay i ces in
usa t l, huh r bb e pr r , nrae
t ea o n o c re c o t t nin, hwvr adut
h mut f urny usa d g o ee, n nil
t isc re c f d it wybc t t ebns py e t
h urny ins s a ak o h ak, amns
oto t eTes r acutw nthv t e fu ef c
u f h r auy con ill o ae hir ll fet
ininrain mme bn rsre. Ft emr, a
ces g e br ak eevs uhr oe s
t e Jn mnh n a d Fut o J ly hlidy
h ue o t -e d n o rh f u o a
apoc e , afut e i ces o asaoa nt r in
pr ahd rhr nrae f es nl aue
t ea o n o c re c inc c laio ws inpopc.
h mut f urny iru t n a r s et
Nvrhles b Jn 2, a a rs lt o Tes r
eet e s, y ue 4 s eu f rauy
d bre e t, t gt e wh gld imot , ecs
is usmns oehr it o prs xes
rsre o t eNw okCybnshdr e t aot
eevs f h e Yr it ak a isn o bu
$ 3 ,0 0 0 , adecs rsre o a m br bns
7 5 0 ,0 0 n xes eevs f ll e e ak
m

Excess Reserves of All Member Banks and Treasury Deposits in
Federal Reserve Banks

MONTHLY REVIEW, JULY 1, 1936

50

hdr e aoe $ ,4 0 0 ,0 0 ad fut e inrae
a is n bv 2 0 ,0 0 0 , n rhr cess
apae t b inpopc.
perd o e r s et
Mny Rts
o e ae
Ds it t ew ef cut n inm brbn rsre,
ep e h id lut aio s e e ak eevs
m
mnyr t ss o e litlec ag dr gJn, ecp fo
oe ae hwd t hne uin ue xe t r
as h inraeiny ld o Tes r nt s
lig t ces ie s n rauy oe.
M oney Rates a t N ew Y o rk
June 28, 1935 M a y 29, 1936 June 29, 1936
Stock Exchange call loans........................
Stock Exchange 90 day loa n s.................
P rim e commercial paper— 4 to 6 m onths
B ills — 90 day unindorsed........ ................
Customers’ rates on com m ercial loans
(Average rate of leading banks a t
m idd le of m o n th ) ..............................
Treasury securities:
M a tu rin g December (y ie ld ) ................
M a tu rin g Feb rua ry 1938 (y ie ld ). . . .
Average y ie ld on Treasury notes (1-5
y e a rs )........................................................
Average yield on Treasury bonds (more
th a n 5 years to earliest call date) . . . .
Average ra te on latest Treasury b ill
sales 273 day issue................................
Federal Reserve B ank of N ew Y o rk re­
discount ra te ...........................................
Federal Reserve B a n k of N ew Y o rk b u y ­
ing ra te fo r 90 day indorsed b ills . . . .

X
*x
X
X

1

1

x

* ix
H
X

1.79

1.67

1.67

N o yield

N o yie ld
.14

N o y ield
.23

.53

.69

2.4 4

2 .3 2

.12

.20

t

.79

#2.34
.19

IX

IX

IX

X

X

X

* N om in al.
f -Average raised .05 b y inclusion of l z% per cent Treasury
/
note issue m a tu rin g June 15, 1941.
# Average raised .02 b y inclusion of 2%
per cent Treasury bond issue of 1951-54.

Mme Bn Ceit
e br a k rd
Dr gt et rewese ddJn 1 t et t l lon
uin h he ek ne ue 7 h oa as
adinet e t o we lyr prin m br bns in
n vsmns f ek e ot g e e ak
m
NwYr C y inrae $ 8 ,0 0 0 , t t e h hs
e ok it cesd 4 0 0 ,0 0 o h ig et
pin ee rahd laglyincnet nwht eGv
o t vr ec e , r e
oncio it h o­
en e t f a c go Jn 1. Fr sm wes pio
r mn innin n ue 5 o o e ek r r
t t es bcipio sfo t enwTes r sc r ie t e
o h usr t n r h e r auy euit s h
Nw okC ybnshdbe a d gt t e hld g
e Yr it ak a en din o hir o ins
o Gvr mn sc r ie, prly t r uhprhss o
f oen e t euit s at ho g uc ae f
t ewe lyisuso Tes r b , ada pr nlya o
h ek s e f r auy ills n pae t ls
t r uh aqis io s o Tes r nt s mt r g o
ho g c u it n f r auy oe auin n
Jn 1 adAg s 1 wic wr ec agalefo t e
ue 5 n uut , h h ee xhneb r h
nw r auyi s e. I t ewe e ddJn 1 t ee
e Tes r sus n h ek ne ue 7 hr
ws afut e inraeo $ 4 ,0 0 0 , adt t l hld
a rhr ces f 1 0 0 ,0 0 n oa o ­
ins rahdavlu e $ 3 ,0 0 0 aoe t e lags
g ec e o m 4 2 0 ,0 0 bv h r et
a o n hldinMrh
mut e
ac .
Telon o t eNw okCybnst boesad
h as f h e Yr it ak o rkr n
da r inrae b mr t a $ 0 ,0 0 0 int ef s
eles cesd y oe hn 2 0 0 ,0 0 h irt
we o Jn, poalydeinlag m s r t da r’
ek f ue r bb u r e e ue o e les
a
bro inst c ryt eprfo so Gvr mn sc r
or w g o ar h ot lio f oen e t eui­
te wic t e hdaqirdt ec ag fo nwsus
i s h h hy a c u e o xhne r e i s e.
A rJn 3t evlu eo s c lon s o e aga ul
fte ue h o m f uh as hwd r da
rdcio , btrmindh hro Jn 2 t a amnh
e ut n u e a e ig e n ue 4 hn ot
peios La sohrt a s c r ylon a dhld g
rv u. on t e hn euit as n o ins
o sc r ie ohrt a Gvr mn i s e s o e s a
f euit s t e hn oen e t sus hwd mll
nt i cessint efo rwese ddJn 2.
e nrae h u ek ne ue 4
I rprin mme bns in 10 ohr pinipl
n e ot g e br ak 0 t e r c a
c ie t r uhu t ecut y hld g o Gvr mn
it s ho g o t h o nr , o ins f oen e t
sc r ie wr rdcd ga ully fo svr l wes
euit s ee e ue r d a r eea ek
pee in t eJn isus b tint ewe e ddJn 1
rcd g h ue s e, u h ek ne ue 7
t eewsa i ces o $ 3 ,0 0 0 wic , a int e
hr a n nrae f 3 4 0 ,0 0 h h s h
cs o t e NwYr Cy bns r isdGvr mn
ae f h e ok it ak, a e oen e t
s c r yhld g t anw ig lee Teebnsa o
euit o ins o e h h vl. hs ak ls
hdamdr t inraeint e lon o sc r ie, ad
a oeae ces hir a s n euit s n
s a i cessinohrlon adinsc r ie ohrt a
mll nrae t e as n euit s t e hn
Gvr mn i s e. Te inrae int e t t l lon
oen e t sus h ces hir oa as
a d inet e t in t e fo r wes e dd Jn 2
n vsmns h u ek ne ue 4
a o ne t $ 0 ,0 0 0 .
mut d o 3 3 0 ,0 0




G overnment

S e c u r it ie s

O Jn 1t eSceayo t eTes r anucd
n ue h ert r f h r auy none
of r g o a poimt ly$ 0 ,0 0 0 o 2 prcn
feins f pr x ae 6 0 0 ,0 0 f % e e t
Tes r bns o 15-5 a d $ 0 ,0 0 0 o 1
r auy od f 91 4 n 4 0 0 ,0 0 f %
prcn Tes r nt sdeJn 1, 14, t b i s e
e e t r auy oe u ue 5 91 o e sud
o Jn 1. Ad io a a onso t esm sc r ie
n ue 5 d it nl mut f h a e euit s
wr of rdinec ag fo Tes r nt s mt r g
ee fee xhne r r auy oe auin
o Jn 1 a dfo Tes r nt smt r gAg s 1
n ue 5 n r r auy oe auin uut .
Te sc r ie of rd fo cs s bcipio wr
h euit s fee r ah usr t n ee
po ply oes bcibd s bcipio s fo bt i s e
r mt vrusr e , usr t n r oh sus
bin a poimt ly svn t e t e a o n of rd
e g pr x ae ee ims h mut fee.
A t e t o t e Tes r bns a o ne t
llomns f h r auy od mut d o
$ 7 ,0 0 0 a do t e nt s $ 3 ,0 0 0 , at t l o
6 1 0 ,0 0 n f h oe 4 5 0 ,0 0 oa f
$ ,1 6 0 ,0 0 O t e t t l a o n, $ 3 ,0 0 0 , o
1 0 ,0 0 0 . f h oa mut 5 9 0 ,0 0 r
s hlyudrhlf, wsa te int isd t ic. Hldr
lig t ne a a llot d h isr t o es
o Tes r nt smt r go Jn 1 a dAg s 1
f r auy oe auin n ue 5 n uut
s o e ad t c peee c fo t enw r auybn s
hwd isint rf rne r h e Tes r o d;
ec agso Jn 1 adAg s 1nt sfo t eTes
xhne f ue 5 n uut oe r h r a­
uy bns a o ne t $ 5 ,0 0 0 , wile ec ags
r od mut d o 9 6 0 ,0 0 h xhne
fo t enw r auynt st t le lest a $ 9 0 ,0 0
r h e Tes r oe oa d s hn 6 ,0 0 0 .
Te Tes r cnine t i s e $ 0 0 ,0 0 o 23
h r auy o t ud o su 5 ,0 0 0 f 7
dy Tes r b ad a a d io a $ 0 0 ,0 0 o
a r auy ills n n dit nl 5 ,0 0 0 f
Tes r b de Dcme 1, 13, ec we,
r auy ills u ee br 5 96 ah ek
wees mt r g Tes r b a o ne t
hra auin r auy ills mut d o
$ 0 0 ,0 0we ly O Jn 2, hwvr t eTes r
5 ,0 0 0 ek . n ue 5 o ee, h rauy
anucdt a t ewe lyi s eo Dcme Tes r
none ht h ek su f ee br rauy
b wsbin d cnine .
ills a e g isot ud
Asr n mr e fo Gvr mn sc r ie f llo e
t o g akt r oen e t euit s o wd
t eanucm to t enwTes r bnsadnt s
h none e f h e rauy od n oe
n
o Jn 1 Qoaio s o t e sc r ie t b i s e
n ue . ut t n n h euit s o e sud
Jn 1 rs qic lyt ape iu , adpics o o t
ue 5 oe u k o rm m n r e f u­
sa d gTes r i s e a o avne . Te aeae
t nin r auy sus ls da cd h vrg
y ldo Tes r bns mt r g inmr t a fv
ie n r auy o d auin
oe hn i e
yas dc e t 2 0 pr cn, e ulin t e peios
er elind o .3 e e t qa g h rv u
lo pin fo rcnyasrahdinMy Sbe unly
w o t r ee t er ec e a. us qe t
t a in d in hdinvlu ea dpicsrcddga u
r d g im is e o m n r e eee r d ­
a , bt t e aeae y ld o Tes r bns a e
lly u h vr g ie n r auy od, ft r
a wnefo t e ef c o t e nwi s e o Jn 1,
llo ac r h fet f h e su n ue 5
wst esm a t ee do Jn a a t ee do My
a h a e t h n f ue s t h n f a.
Teaeaey ldo Tes r nt so 1 ya mt r y
h vr g ie n r auy oe f -5 er auit ,
whs ila a jut e t fo t eef c o t enwi s e
it im r d smn r h fet f h e su
o Jn 1, a ors ga ullya e t ef s fe dy
n ue 5 ls oe r d a ft r h irt w as
o t emnh a da t ee do Jn ws0 5prcn
f h o t , n t h n f ue a .0 e et
h hrt a a t ee do My
ig e hn t h n f a.
Blsa dCm e ca Ppr
i l n o mri l ae
Ta in at it int eb mr e dr gJn cn
r d g civ y h ill akt uin ue o­
t udt b s a invlu eadr t swr uc a gd
ine o e mll o m n ae ee nhne .
A t ee do Myo t t nin b a o ne t $3 ,t h n f a usa d g ills mut d o 3 1
0 0 0 a cmae wh$ 4 ,0 0 0 fo Ar ad
0 ,0 0 s o prd it 3 4 0 ,0 0 r pil, n
$ 7 ,0 0 0 aya ao Te dc e fo t e mnh
3 5 0 ,0 0 er g. h elin r h ot
rf ce s a dcess inb bsdo eprs a d
elet d mll erae ills ae n xot n
dm t wrhuece it adinb bsdo gos
o e ic ae os rd s n ills ae n od
s
soe ino s ipe bt enfoe ncut ie. Ac p­
t rd r h pd ewe r ig onr s ce t
in bns adbnes cnine t hldaot 9 pr
g ak n akr o t ud o o bu 0 e
cn o a b da n
e t f ll ills r w.
I t e cmec l ppr mr e a o s le vlu e
n h o m ia a e akt ls a s o m
r
rminds a depimr t inb yo da r t
e a e mll, u r aily o a ilit f eles o
sc r aeut qa t ie o nwpprwhwic t
eue dqae unit s f e a e it h h o
fill t eat edmn. Teaeaer no pim fo r
h civ e ad h vr g u f r e u
t s mnhcmec l pprcnine a %prcn.
o ix o t o mria a e ot ud t e e t
Epc llyc oc nm o s ot rmt r y we aa
s eia hi e a e f hre auit , hn vil­
s

FEDERAL RESERVE AGENT AT NEW YORK

51

ale wr qoe a s hlylo e lee . Cmec l Ac sif aio o foe nlo gt r inet e t in
b , ee ut d t lig t wr vls o mria
las ict n f r ig n em vsmns
pprda r rpre $ 8 ,0 0 0 o ppro t t nin t is cut ya t e e do 13, acr in t t p o
ae eles e ot d 1 4 0 ,0 0 f ae usa d g h o nr t h n f 95 cod g o y e f
a t ee do My a cmae wh$ 7 ,0 0 0 fo inet e t a dcut y o o nrh , is s o nint e
t h n f a s o prd it 1 4 0 ,0 0 r vsmn n o nr f wes ip hw h
Ar ad$ 7 ,0 0 0 fo My13.
pil n 1 3 0 ,0 0 r a 95
acma y g t b . Fr ig hld g o A eic n
co pnin ale oe n o ins f mr a
sok a dbns a $ ,9 1 0 ,0 0 acut fo naly
t c s n od, t 2 5 ,0 0 0 , con r er
F r ig L n T r In e e ts inth U ite 6 pr cn o t e t t l. Te ya-e dmr e vlu
o e n o g e m v stmn
e n d 0 e e t f h oa h er n akt a e
S te
ta s
o cmo sok inet e t ws p cd a $ ,0 5
f o mn t c vsmns a lae t 2 1 ,O t ebs o a et ne s eia s r e, t eF a c 00 0 , a dt e pr vlu o foe n e bns ad
nh ais f n xe dd pc l uvy h inne 0 ,0 0 n h a a e f r ig -hld od n
D is no t eDprmn o Cmec hset ae pe re sok a $ 3 ,0 0 0 . S hlyoe 2 pr
iv io f h e at e t f o m e a simt d r fer d t c s t 9 6 0 ,0 0 lig t vr 0 e
r
t evlu o foe nlo gt r inet e t int eUit d cn o foe ninet e t hr ae inlue in t e
h a e f r ig n em vsmns h n e e t f r ig vsmns ee r c dd h
Sae a t ee do 13 a $ ,0 5 0 ,0 0 a cmae ct gr o d et inet e t, rpee t gt eage
t t s t h n f 95 t 5 3 ,0 0 0 , s o prd aeoy f irc vsmns e rs nin h gr­
r ig -c nr lle dsr l
wh$ ,2 0 0 ,0 0aya er r Tei ces int e gt foe n ineet in foe n o t o d inut ia
it 4 7 ,0 0 0 er alie. h nrae h ae r ig t rs
rcr e vlu o s c inet e t dr g13 wsde cr oaios in t is cut y Te rmin g 2 pr
eodd a e f uh vsmns uin 95 a u opr t n h o nr . h e a in 0 e
bt t t euwr t ne c o A eic ncmo sok cn o foe nlo gt r inet e t int is c ut y
oh o h p ad e dny f mr a o mn t c e t f r ig n em vsmns h o nr ,
h
pics wic risdt emr e vlu o eisin foe n s o nint e t b a “O e I vsmns cniss
r e, h h a e h akt a e f x t g r ig hw h ale s t r net e t ”, os t
hld g o cmo sok, adt r t e et niv nt o ast hldint utfo foe nacut t ente u y
o ins f o m t cs n o ahr xe s e e f ses e r s r r ig con, h e qit
n
aqis io so A eic nsc r ie b foe ninet r o foe ninuac cma ie inUit dSae bac e
c u it n f mr a euit s y r ig vsos f r ig s r ne o pn s n e t t s rnhs
d r gt escn hlf o t eya. Teino edr e a daf t s a dfoe n hld g o mrggs ad
uin h eod a f h er h cm eivd n filiae, n r ig o ins f ot ae n
h ru f
fr mfoe nlo gt r inet e t hr ws et ae ra et t . Tems imot n it mint is go po
o r ig n em vsmns ee a simt d el sae h ot pra t e
b t eF a c D is na $ 4 ,0 0 0 in13, inic t inet e t cnisso sc r ie a dpoet s a m ­
y h inne iv io t 1 0 0 ,0 0 95 d a­ vsmns os t f euit s n r prie d in
t rd y r ses r r ig e eic r s uh vs­
in a aeaert o r t r int enigbr odo 3 isee b tut e fo foe nbnf iaie. Sc inet
g n vrg ae f eun h e hoho f
mns wic aes m ht ab r r vluda $ 1,e t, h h r o e a r it aily a e t 45
w
prcn.
e et
Teaoef ue, cmindwht eF a c D is n 0 0 0 , cnis inlag pr o sok adbns nt
h bv igrs o b e it h inne iv io 0 ,0 0 os t r e at f t c s n od o
et ae o t enm a vlu o A eic ninet e t e e hr rcr e .
simt s f h o inl a e f mr a vsmns lswee eodd
infoe ncut ie a dt eino ercivdfr ms c I ea in gt egor picl d t ibt no foe n
r ig onr s n h cm ee e o uh n xm in h ega h a isr uio f r ig
inet e t, poid am s r o t is c u t y nt lo gt r inet e t int is c ut y it apas t a
vsmns r v e e ue f h o nr ’s e n em vsmns h o nr , per ht
a
ce it r ps io o lo gt r acut Te nm a Bit h inet e t cnt ue aot 2 pr cn o
rd o oit n n n em con. h o inl r is vsmns o sit t d bu 7 e e t f
vlu o A eic npivt lo gt r inet e t ara t et t l, Cnd ninet e t 2 prcn, adDt h
a e f mr a r ae n em vsmns bod h oa a aia vsmns 0 e e t n uc ,
a t ee do 13, t elaet dt fo wic pb hd S is, a dFe c inet e t cminda a d io a
t h n f 94 h t s ae r h h ulis e ws n r nh vsmns o b e n dit nl
f ue aeaa b , ws et ae a $ 3 1 ,0 0 0 , 2 pr cn. Teef e cut ie t gt e hldaot
igrs r vilale a simt d t 1 ,1 4 0 ,0 0 9 e e t hs iv onr s oehr e bu
o wic $ ,8 8 0 ,0 0cnise o d et inet e t t re ureso t et t lfoe nlo gt r inet e t
f h h 7 1 ,0 0 0 os t d f irc vsmns he-qat r f h oa r ig n em vsmns
h n e t t s n vr a f h e a dr
ar a, a dt e rmine, $ ,2 6 0 ,0 0 o foe n int e Uit dSae, a doe hlf o t e rmine
bod n h e a dr 5 9 ,0 0 0 , f r ig
dlla bnsadohrprfo inet e t. Tec re t ws o ndb Er pa cut ie woe hld g ae
o r od n t e ot lio vsmns h urn a we y uo e n onr s hs o ins r
mr e vlu o t eeinet e t, hwvr i cnidr nts pr t lys o nint et b blo .
akt a e f hs vsmns o ee, s os e­ o e aae hw h ale e w
alylo e. Teino ercivdfr mhs inet e t
b wr h cm ee e o t ee vsmns
dr g13 wsp cda $ 5 ,0 0 0 , adt einict d
uin 94 a lae t 4 5 0 ,0 0 n h d ae
aeaer t o rt r dr gt eya wsaot3 pr
vr g ae f eun uin h er a bu .4 e
cn. Tenm avlu o A eic ninet e t ar a
e t h o inl a e f mr a vsmns bod
apast b s hlymr t a t oadahlft e t e
per o e lig t oe hn w n a im h
s
vlu o foe nlo gt r inet e t int is c ut y
a e f r ig n em vsmns h o nr ,
ad t e ino e rcivd o A eic n inet e t
n h cm ee e n mr a vsmns
ara s m htmr t a t ret e t ei cmpid
bod o e a oe hn he im h no e a
w
s
o foe ninet e t int eUit dSae.
n r ig vsmns h n e t t s
A et ae o foe n inet e t in t e Uit d
n simt f r ig vsmns h n e
Sae pe ae b S Gog Pis , e it r o t e
t t s rprd y ir er e a h d o f h
Lno S tis fo t e Nt nl Mnt r Cmis S c r Mr e
o dn ta t, r h aio a o eay o m­
s nin11 p cdt evlu o foe nlo gt r inet e uity a k ts
io 90 lae h a e f r ig n em vs­
h vr g a unvr f t c s n h e Yr
mns in t is cut y a r uh $ ,0 0 0 ,0 0 o Teaeaedilyt r oe o sok o t eNw ok
et
h o nr t o g ly 6 0 ,0 0 0 , f
wic $ ,5 0 0 ,0 0wshldinGetBit in $ ,0 0 SokEc a g ws les t a 1 0 ,0 0 s ae dr g
h h 3 0 ,0 0 0 a e
r a r a , 1 0 ,- t c xhne a s hn ,0 0 0 hrs uin
00 0 in Gr a y $ 5 ,0 0 0 in Hlla d ad Jn, bt sokpics cnine t eireu r avne
0 ,0 0
emn, 7 0 0 ,0 0
o n, n ue u t c r e o t ud h r g la dac
$ 2 ,0 0 0 inFa c. Teino edr e fr ms c wic bgniner My A ars ltt egnr l lee
6 0 0 ,0 0 r ne h cm eivd o uh h h ea aly a. s eu h e ea vl
inet e t wset ae a naly$ 0 ,0 0 0 aya. o sokpicsa t eedo Jn sod3 prcn aoe
vsmns a simt d t er 3 0 0 ,0 0 er f t c r e t h n f ue t o % e et bv
O t e bs o t is et ae foe n inet e t in amnhpeio s bt rmindaot 4prcn blo
n h ais f h simt , r ig vsmns
o t rv u, u e a e bu e e t e w
t isc ut ypio t t ewrapa t hv be sm t eA r pa. I d sr ladr ilr a s ae rmind
h o nr r r o h a per o ae en o e h pil ek nut ia n a od hrs e a e
­
wa lagr t a a t e pee t t e s get g t a blo t eA r lee btt epb uilit srs dr g
ht r e hn t h rsn im, ugsin ht e wh pil vl, u h ulic t ie oe uin
t einet e t o foe nc p a int eUit dSae t ecus o t emnht alee o lys hlyblo t e
h vsmn f r ig a it l h n e t t s h ore f h o t o vl n lig t e wh
d r gt eps-wrpr dhsnt be qit s fi i n h hpin o latFbur , wic wst eh hs sne
uin h ot a eio a o en ue ufcet ig o t f s e r ay h h a h ig et i c
t of e t eet niv liqidt no foe nhld g o Ag s 13.
o fst h xe s e u aio f r ig o ins f uut 93
A eic nsc r ie fr m11 t 11. We acut Pic mvmns in t e md mad lo e gae
mr a euit s o 94 o 98 hn con
r e oe e t
h e iu n wr rd
i t kno A eic ninut ia go t dr gt eps dm t cr oaio bns wr s ila t sok
s ae f mr a dsr l r w uin h at o e ic opr t n od ee im r o t c
h
s
t e t -fiv yas t e poot nt s ae o foe n pic mvmns Te avne inJn t gt e wh
wny e er, h r prio ae hr f r ig r e oe e t. h dac ue oehr it
inet r inA eic ninut ywsmc lagrbf r t a o t epeio s mnhws s fic n t cne t e
vsos mr a dsr a uh r e eoe ht f h rv u ot a uf ie t o acl h
t ewrt a a t epee t t e
h a hn t h rsn im.
Ar rcsio, adaeaepicsna t ee do t e
pil ees n n vr g r e er h n f h




( In m illion s of dollars)

Stocks
and Bonds

Great B r ita in ........................
C an a d a ...................................
N ethe rla nd s..........................
S w itzerla n d ............................

D ire c t
Investm ents

O ther
Investm ents

T o ta l

O ther C ou n trie s...................

609
523
429
311
214
865

362
322
249
13
14
85

403
161
106
75
54
240

1,374
1,006
784
399
282
1,190

T o ta l.........................

2,951

1,045

1,039

5,035

MONTHLY REVIEW, JULY 1, 1936

52
m on th

w ere

about

1 %

p o in ts

e s ta b lis h e d la s t F e b r u a r y .
w h ic h

show ed

le s s

b e lo w

H ig h

th e

y e a r ’s

h ig h s

3,985

g r a d e c o r p o r a t e is s u e s ,

p ron ou n ced

d e c lin e s

in

A p r il,

STATE, MUNICIPAL
& FARM LOAN

con ­

NEW C A P IT A L

t in u e d t h r o u g h th e fir s t h a lf o f J u n e th e u p w a r d t e n d e n c y
show n

in

M ay,

and

p r ic e s

fo r a n u m b er o f years.

a g a in

e s ta b lis h e d

new

STATE, MUNICIPAL,
& FARM LOAN

h ig h s

REFUNDING

S u b s e q u e n tly , h o w e v e r , th e m a r ­

k e t d e v e lo p e d so m e ir r e g u la r ity .

N e w

F in a n c in g
CORPORATE

N ew

fin a n c in g

lo w in g

th e

s h a r in g

M ay

in

flo ta tio n
p u b lic

in c r e a s e d

th e

of

s la c k e n in g ,

in cr e a s e .

about

o ffe r in g s

w ith

and

c h ie fly

of

in

v o lu m e

a ll

P r e lim in a r y

p r iv a te

of

d a ta

in

June

$ 2 0 0 ,0 0 0 ,0 0 0

in d ic a te

th e

in c lu d in g

as

M ay

com p ared
and

to ta l w a s

S ta te

NEW C A PITA L

fo l­

c la s s ific a t io n s

p la c e m e n ts ,

The

June

s e c u r itie s

$ 4 0 0 ,0 0 0 ,0 0 0

A p r il.

about

d u r in g

p r in c ip a l

$ 7 5 0 ,0 0 0 ,0 0 0

a p p r o x im a te ly

$ 1 ,0 0 0 ,0 0 0 ,0 0 0

in

and

about

com p osed

1936

m u n ic ip a l,

Offerings of Domestic Securities in First Six Months of 1936 Compared
with Corresponding Period of Previous Six Years and Average for
1925-29 (Commercial and Financial Chronicle data, exclud­
ing investment trust issues; in millions of dollars. June
1936 figures preliminary)

$ 1 8 0 ,0 0 0 ,0 0 0 o f p u b l i c u t i l i t y , $ 1 6 0 ,0 0 0 ,0 0 0 o f i n d u s t r i a l ,
$ 1 1 0 ,0 0 0 ,0 0 0

r a ilr o a d ,

$ 8 3 ,0 0 0 ,0 0 0

F ed eral

L and

B ank,

a n d $ 1 0 ,0 0 0 ,0 0 0 F e d e r a l I n t e r m e d i a t e C r e d i t B a n k is s u e s .
T h e p r o c e e d s o f th e n e w s e c u r itie s c o n t in u e d t o b e c h ie fly
fo r

th e

r e fu n d in g

in te r e s t

ra tes,

part

th e

of

m oney

D is t r ib u t io n
p roceed ed
lo w in g

of

o u ts ta n d in g
in

new

is s u e s

som e

r a is e d

th e

fa ir ly

th e

of

a lth o u g h

w as

cases

to

d e v e lo p m e n t

of

in

is

h ig h e r

le a s t

p r o v id e

s e c u r itie s

s a tis fa c to r ily

b e a r in g

at

a

new

s m a ll

is s u e s s o m e w h a t le s s r e a d i l y

m on th .

tow a rd

grade

th a n

to

m e d iu m

grade

T h e la r g e s t o ffe r in g o f th e m o n th
of

C o n s o lid a te d

b o n d s d u e in

in

1
1

and

w ere

th e m o n th .
per

F ed era l

end

of

q u oted

at

a

s lig h t

cen t

bonds

of

th e

in d iv id u a l

o f w h ic h

about

$ 5 8 ,0 0 0 ,0 0 0

3

per

at 1 00 %

p r e m iu m

in

cen t

on Ju n e

a t th e

end

of

o u ts ta n d in g 4 %

F ederal L an d

w ere

p u b lic

flo ta tio n s

has

1935,

show n

a lth o u g h
part

th e y

of

th e

c o n tin u e d

to ta l.

N ew

c o n s is te n t

g row th

s in c e

1933,

th e y e a rs p r io r to 1 93 2 .

F o r e ig n

E x ch a n g e s

P o litic a l

and

fin a n c ia l

B an k s,

hands

w h ile

d e v e lo p m e n ts

in

F ra n ce

tin u e d to b e th e m a jo r in flu e n c e in th e fo r e ig n
m a rk et d u r in g J u n e .

Loan

T h ese b o n d s w ere to red eem

in

c o n s id e r a b le

b u t r e m a in s f a r b e lo w

th e

iss u e s .

F arm

a

p r ic e s

w a s t h e $ 8 3 ,0 0 0 ,0 0 0

1 9 5 6 , w h ic h w e r e o ffe r e d

th a n

fo r

ity

have

M a rk e t re s p o n s e c o n tin u e d to b e m o re fa v o r a b le

t o h ig h

is s u e

th e

1936

c a p ita l o b ta in e d b y d o m e s tic c o r p o r a t io n s t h r o u g h s e c u r ­

o f o u ts ta n d in g s e c u r itie s , th e m a r k e t a p p e a r e d t o a b s o r b
new

in

accou n t

to

rep orted

ir r e g u la r ity

to

c a p ita l.

g e n e r a l, a lth o u g h , f o l ­

som e

s m a lle r

con ­

exch an ge

P r e s s u r e a g a in s t F r e n c h e x c h a n g e

a g a in b e c a m e s e v e re in th e e a r ly p a r t o f th e m o n th , b u t
a b a ted

c o n s id e r a b ly

th e r e a fte r .

A

w ave

of

in d u s tr ia l

s tr ik e s , w h ic h o c c u r r e d s im u lt a n e o u s ly w it h t h e a s s u m p ­
t io n o f o ffic e b y th e n e w P o p u l a r F r o n t G o v e r n m e n t e a r ly
in J u n e , s e r v e d t o in t e n s ify
r e g a r d in g
The

th e

F ren ch

a c c e n tu a tio n

th e fe e lin g o f a p p r e h e n s io n

fin a n c ia l a n d

of

p ressu re

m on eta ry

a g a in s t

th e

s it u a t io n .
fr a n c

w as

th e r e m a in d e r w e r e h e ld b y v a r io u s G o v e r n m e n t a g e n c ie s .

r e fle c te d

O n J u n e 3 0 , $ 7 5 ,0 0 0 ,0 0 0 o f N e w Y o r k S t a t e n o t e s m a t u r ­

g o ld

in g

c o u n t r y , a n d in a fu r t h e r a d v a n c e in th e p o u n d s te r lin g

in

ce n t.

M ay

1937

w ere

s o ld

a t a p r ic e

0 00 o f 15 y e a r 3 %
w h ic h

y ie ld

0 .4 0

per

p e r ce n t r e fu n d in g d e b e n tu re s a t p a r,

im m e d ia te ly

la r g e

flo ta tio n s

w ent

w h ic h

to

a

wT r e
e

N ia g a r a

F a lls P o w e r

3%

per

and

th e

s lig h t
w e ll

c e n t b o n d s m a t u r in g

104,

to

T h e T e x a s C o r p o r a t i o n o n J u n e 1 6 is s u e d $ 6 0 ,0 0 0 ,p r e m iu m .

r e c e iv e d

O th er

w ere

The

C o . $ 3 2 ,5 0 0 ,0 0 0 is s u e o f r e f u n d i n g

W is c o n s in

in

M a rch

P u b lic

1 9 6 6 , o ffe r e d

S e r v ic e

at

C o r p o r a t io n

$ 2 5 ,0 0 0 ,0 0 0 is s u e o f r e f u n d i n g 4 ’s m a t u r in g in

25 yea rs,

o ffe r e d a t 9 9 % .
In

in

b o th

fr o m

term s

tio n
th e

of

in

F ran ce,
of

b o th

to

fr a n c -d o lla r
N ew

per

a c c e le r a te d

m ost

fra n c s

of

ra te

g o ld

Y o r k , u n til J u n e
fo rw a r d

annum

fr a n c s

m ovem ent

s h ip p e d
W ith

in

th e
th e

p o in t

t h r o u g h o u t th is p e r io d .

excep­

fir m n e s s ,

fr o m

d is c o u n t

above
In

of

P a r is

on

30

th e

of

th is

n e ig h b o r h o o d

s h ip p in g
q u oted

to

th e

s lig h t t e m p o r a r y

19, a n d

w as

w as

d o lla r s .

of

r e m a in e d

e ffe c tiv e

ou tw a rd

w h ic h

and

o c c a s io n a l p e r io d s

$ 0 .0 6 5 8 % , th e
m on th

an

th ree

per

th ree

cen t
w eeks

e n d e d J u n e 1 9 , th e g o ld h o ld in g s o f th e B a n k o f F r a n c e
d e c r e a s e d $ 2 0 4 ,0 0 0 ,0 0 0 , o f w h ic h n e a r l y $ 1 6 0 ,0 0 0 ,0 0 0 w a s

th e a c c o m p a n y in g

th e v o lu m e

o f d o m e s tic

ta k e n f o r s h ip m e n t t o th e U n it e d

m on th s

th is

is

flo w

rea ch ed

c o m p a r e d w it h th e a v e r a g e f o r th e fir s t h a lf o f th e y e a r s

and

a

fr o m

B a n k o f F r a n c e f o r th e w e e k e n d e d J u n e 5.

s e c u r itie s flo a te d

in

d ia g r a m

th e

fir s t

s ix

of

year

1 9 2 5 t o 1 9 2 9 , a n d w it h th e fir s t s ix m o n t h s o f e a c h

su bsequ en t

year.

A s

th is

t o t a l is t h e l a r g e s t s in c e
r e fu n d in g
a lo n e in

o p e r a t io n s .

d ia g r a m

1930,

due

C orp ora te

th e fir s t h a lf o f 1 9 3 6

in d ic a te s ,
c h ie fly

to

r e fu n d in g

exceeded

by

th e
th e

1936
heavy

o p e r a t io n s

$ 3 0 0 ,0 0 0 ,0 0 0

g o ld

lo s s

of

$ 1 0 0 ,0 0 0 ,0 0 0

O w in g t o th e in t e n s ifie d
w h ic h
th e

op era ted

pound

over

76%

S ta te s.

its la r g e s t p r o p o r t io n s

F ren ch
and

ad van ced

fu r th e r ,

r e a c h in g

and

t o u c h in g

a

$ 5 .0 4 d u r i n g t h e c o u r s e o f t r a d i n g

lo w in g

on

fa rm

lo a n

th rou g h

r e fu n d in g

1935,

is s u e s ,

S ta te ,

oth er

th a n

m u n ic ip a l,
s e c u r itie s

and
gu ar­

a n te e d b y th e U n ite d S ta te s G o v e rn m e n t, w e re so m e w h a t




June

above
s in c e

th e

16.

T h is

F ebru ary

A u gu st

1934,

d o lla r
1936
w hen

th e

rep orted

fo r

th rou g h
h ig h

a
of

ou t­

m on th
by

th e

s te r lin g ,

th e

d o lla r ,

q u o ta tio n
s lig h t ly

of

over

o n J u n e 4 a n d a g a in

q u o ta tio n
peak,

in

dem and

d ir e c tly

t h e t o t a l o f a ll s e c u r it y is s u e s in t h e fir s t h a l f o f 1 9 3 5 . F o l ­
in c r e a s e s

w as

b o th

fr a n c s

T h is g o ld

e a r ly

and

m easu res

w as
w as

ta k e n

fr a c t io n a lly
th e
to

h ig h e s t

e ffe ctu a te

53

FEDERAL RESERVE AGENT AT NEW YORK
th e

S ilv e r

p e r io d

P u rch ase

A ct

of

1934

o f m o d e r a te w e a k n e ss in

The

a b a tem en t o f p re ssu re

s u s p e n s io n

o f th e

ou tw a rd

w ere

fo llo w e d

by

a

a g a in s t th e

g o ld

fra n c

The
and

m ov em en t fr o m

th e

F ran ce

fo llo w e d a n a d d re s s o n J u n e 19 in th e C h a m b e r o f D e p u ­
t ie s

by

th e

F ren ch

G o v e r n m e n t ’s

M in is te r

m on eta ry

p rogram

in c lu d e d

to

s p e c u la tio n

ch eck

a

of

and

F in a n c e ,

fin a n c ia l

r e je c tio n

of

a g a in s t

th e

o u tlin in g

th e

p rogram .

d e v a lu a t io n ,
fra n c ,

T h is

p e n a ltie s

and

T h e fr a n c -d o lla r ra te p r o m p tly w e n t a b o v e th e

e ffe c tiv e

g o ld

to

a

m o d e ra te

th e

u pw ard

m on th ,

cou n t
th e

on

p o in t fr o m

te n d e n cy

c lo s in g

th ree

e q u iv a le n t

at

and
on

fo rw a r d

a b ou t 15

c o n tin u e d

d u r in g

$ 0 .0 6 6 3 %

m on th
of

P a r is

per

th e

fra n c s

la n d

th e

g o ld

v ir tu a lly

The
a

and

recovery

m o d e ra te

cea sed
in

in

fr o m

th e

F ren ch

net

p o u n d -d o lla r

o u tflo w

ra te

th ir d

to

The

of

red u ced
The

w eek
w as

$ 5 .0 1 %

and
of

m on th .

a c c o m p a n ie d
in

s te r lin g ,

on

June

a d v a n ce d to $ 5 .0 3 %

e ffe c tiv e

s im u lt a n e o u s ly
a d van ces

by
th e

22, b u t

o n th e 2 7 th .

Closing Cable Rates at New York

$ .1694
.2207
4.9413
.06639
.4048
.6837
.0831
.2483
.1376
.2546
.3285

B elgium ...........................................
Denm ark.........................................
E ngland...........................................
France..............................................
Germ any..........................................
H olland............................................
It a ly .................................................
N orw ay............................................
Spain................................................
Sw eden............................................
Switzerland.....................................

June 29, 1936

$ .1692
.2231
4.9950
.06583
.4024
.6752
.0786
.2511
. 1365
.2577
.3230

fo llo w in g

F ran ce.

redu ced,

on

g o ld ,

th e

s la c k e n in g

of

th e

T h e b a n k ’s o t h e r r a t e s w e r e

w ith

th e

w h ic h

e x c e p tio n

r e m a in s

at

of

9

th e

per

ra te

ce n t,

as

T h e N e th e r la n d s B a n k r a te , w h ic h h a d b e e n r a is e d fr o m
3 %

to 4 %

p e r ce n t o n J u n e 4, w a s re d u c e d to 4 p e r ce n t

e ffe c tiv e th e 2 5 th
C o m m o d ity
W ea th er
m any

a n d to

3%

p e r ce n t e ffe c tiv e th e 3 0 th .

P r ic e s

.9988
.3295
.0857
.8000

.9984
.3330
.0859
.8000

.2909
.3737
.3956

.2930
.3774
.2988

u n fa v o r a b le

in

fo r

th e

s u b s t a n t ia l p r ic e

grow th

ad van ces

n u m b e r o f a g r ic u lt u r a l c o m m o d it ie s d u r in g J u n e .
p r ic e s

show ed

m on th , a n d
on June
m a ted

little

th e

m ovem ent

in

th e

G overn m en t J u n e

1 0 , in w h ic h

e a r ly

1 crop

b u s h e ls ,

about

a

W heat

part

of

th e

r e p o r t , is s u e d

w in te r w h e a t p r o d u c tio n

a t 4 8 1 ,8 7 0 ,0 0 0

of

in

w a s e s ti­

1 8 ,0 0 0 ,0 0 0

b u s h e ls

a b o v e th e M a y 1 e s tim a te , a n d th e s p r in g w h e a t c r o p w a s
e s tim a te d

at about

e ffe ct o n

2 0 0 ,0 0 0 ,0 0 0

q u o ta tio n s .

h ow ever,

sh arp

b u s h e ls ,

D u r in g

a p p a r e n t ly

th e r e m a in d e r

in c r e a s e s

w ere

show n

had

o f th e

in

w heat

p r ic e s , r e fle c t in g p r iv a t e r e p o r ts o f d a m a g e to th e s p r in g
w heat crop
A

s p e c ia l

19

by

d r o u g h t in

th e N o rth w e s t a n d

G overn m en t

d e s c r ib in g

th e

crop

s e r io u s

report

w as

dam age

w e a th e r in th e n o r th w e s t e r n a re a .

h ig h

te m ­

is s u e d

ca u sed

by

on

June

th e

dry

C o n s e q u e n t ly , th e ca s h

p r ic e f o r N u m b e r 1 N o r th e r n w h e a t a t M in n e a p o lis ro se
to

$ 1 .3 5 %

a b u s h e l, w h ic h

is

20%

ce n ts

o f M a y a n d v i r t u a l l y a t t h e y e a r ’s h ig h .

above

th e

end

T h e S ep tem b er

fu t u r e f o r w h e a t a t C h ic a g o a ls o a d v a n c e d

.2942
.3796
.3013

11%

96%

.9975
.3350
.0859
.8000

Japan...............................................
Ind ia................................................
Shanghai..........................................

r e s u lte d

p e r a t u r e s t o g e t h e r w it h in s e c t in fe s t a t io n in o th e r a re a s.

$ .1691
.2245
5.0263
.06633
.4036
.6810
.0787
.2527
.1375
.2593
.3275

C anada............................................
A rgentina........................................
B razil...............................................
Uruguay..........................................

co n d itio n s

crops

m on th ,

M ay 29, 1936

June 29, 1935

2 6 th ,

fix e d o n M a y 7.

little

Exchange on

th e

o u tflo w o f g o ld fr o m

to

oth er

S w itz e r ­

th e

o f F r a n c e w a s lo w e r e d

6 to 5 p e r c e n t e ffe c t iv e J u n e 2 4 a n d a g a in t o 4 p e r

cen t

fo r

C h a n g e s

o f th e B a n k

d is ­

th e s e co n d h a lf o f

m ovem ent

r e c e d in g

s te r lin g s u b s e q u e n t ly

w as

H o lla n d

exchan ge

d ow n w ard

27.

a year.

g o ld b lo c c u r r e n c ie s a ls o r e c o v e r e d in
June,

r e m a in d e r

June

cen t

show

R a te

d is c o u n t ra te

fro m

m easu res

d e s ig n e d to b r in g a b o u t a r e p a t r ia t io n o f F r e n c h c a p ita l.

s h ip p in g

C e n tra l B a n k

d o lla r e x c h a n g e .

ce n ts to 6 8 %

ce n ts a b u s h e l, a n d s p o t c o r n ro s e 7 %

ce n ts

a

b u s h e l,

th e

h ig h e s t

s in c e

r e a c tio n , h o w e v e r , w a s s h o w n in

la s t

ce n ts to

N ovem b er.

Som e

g r a in p r ic e s to w a r d

th e

clo s e o f th e m o n th .
H ig h e r p r ic e s f o r t r u c k c r o p s , e s p e c ia lly p o t a t o e s , a ls o
r e s u lte d fr o m

G o ld

p roved
The

m ovem ent

of

g o ld

to

th is

cou n try

w h ic h

began

d u r in g th e la s t w e e k o f A p r i l c o n tin u e d in la r g e v o lu m e
th ro u g h

th e

th ir d

w eek

in

th e r e w e r e n o r e c e ip t s fr o m
g o ld ,

h ow ever,

c o n tin u e d

June,

but

a fte r

th e

F r a n c e a n d H o lla n d .

to

a r r iv e

fr o m

23rd
Som e

I n d ia .

ta ry

g o ld

sto ck
of

$ 2 9 ,1 0 0 ,0 0 0

fr o m

$ 6 ,9 0 0 ,0 0 0
$ 2 ,1 0 0 ,0 0 0
On

th e

t r a lia

th e

fr o m

U n ite d

In d ia ,

by

and

and

assay

g o ld

g o ld

fo r
sto ck

m a te ly

fo r e ig n
of

th e

cou n try

$ 2 0 5 ,0 0 0 ,0 0 0

o f a ll t r a n s a c tio n s .




a t th is

d u r in g

w as
th e

ce n ts

a

pound,

but

d u r in g

sp ot cotton

s u b s e q u e n tly

of

th e

June

cotton

b ecau se

ro se as h ig h
d e c lin e d

to

crop

of

un­

a s 1 2 .4 9
c lo s e

th e

m o n t h a t 1 2 .3 9 c e n t s a p o u n d , c o m p a r e d w i t h 1 1 .7 7 c e n t s
A s a r e s u lt o f a r e d u c t io n in m a r k e t­

in g s th e a v e ra g e p r ic e o f h o g s m a d e a n a d v a n c e m o r e th a n
s u ffic ie n t

to

can cel

th e

r e c e s s io n

in

M ay.

The

p r ic e

of

p art

A us­

of

th e

m on th ,

but

s u b s e q u e n tly

recovered

a

la r g e

p a r t o f t h is lo s s .

R u s s ia .

fr o m

F o llo w in g

th e

d e c lin e s

show n

in

th e

tw o

p r e v io u s

m o n t h s , a s u b s t a n t ia l a d v a n c e o c c u r r e d in r a w s ilk p r ic e s
d u r in g J u n e , th e s p o t q u o ta t io n r is in g 10 ce n ts to $ 1 .6 1 %

to b e r e c e iv e d

o ffic e s , b u t w a s m o r e

accou n t

fa v o r a b le w e a th e r, a n d

e s tim a te s

s te e r s c o n t in u e d t o m o v e s o m e w h a t lo w e r d u r in g th e fir s t

fro m

c o n tin u e d

a n e t in c r e a s e o f $ 2 4 ,8 0 0 ,0 0 0 i n

m ark

to

E n g la n d ,

r e c e iv e d

P r iv a te

s e v e r a l tim e s

M e x ic o ,

fr o m

fr o m

$ 2 0 0 ,0 0 0
w as

b e n e fic ia l.

lo w e re d

F ran ce,

C h in a .

N e w ly m in e d a n d s c r a p
a t th e m in ts

fr o m

$ 1 3 ,6 0 0 ,0 0 0

$ 1 ,5 0 0 ,0 0 0

$ 6 0 0 ,0 0 0 f r o m

a m ou n ted

cam e

$ 2 ,4 0 0 ,0 0 0

C o lo m b ia ,

C oa st,

S ta te s

$ 1 6 0 ,6 0 0 ,0 0 0

H o lla n d ,

fr o m

W est

and

of
w h ic h

w ere

a t th e e n d o f M a y .

T o t a l im p o r ts o f g o ld a t N e w Y o r k a ffe c tin g th e m o n e ­
$ 2 2 0 ,0 0 0 ,0 0 0

a d v e rs e w e a th e r c o n d itio n s , a lth o u g h r a in ­

fa ll in th e e a s te rn S ta te s in th e la tt e r p a r t o f th e m o n th

M o v e m e n t

g o ld
bank.

th a n

o ffs e t

h e ld u n d e r e a r ­
The

in c r e a s e d

by

m on th

a

as

m on eta ry
a p p r o x i­
net

r e s u lt

a

pound.

h ig h e r

R ayon

d u r in g

and

d o m e s tic

th e m o n th .

w ool

A m ong

p r ic e s

th e

a ls o

m oved

p r in c ip a l m e ta ls ,

s c r a p s te e l a t P i t t s b u r g h d e c lin e d f u r t h e r t o $ 1 3 .2 5 a t o n ,
a

le v e l

$ 2 .5 0

b e lo w

th e

y e a r ’s

h ig h

F e b r u a r y , b u t la t e r r o s e t o $ 1 3 .5 0 .

rea ch ed

la s t

T h e p r ic e o f tin

a ls o

s h o w e d fu r t h e r n e t lo s s d u r in g J u n e .
c o n tin u e d

at

p r e v io u s ly

cu rren t

p o in t

O th e r m e ta l p r ic e s

le v e ls .

54

MONTHLY REVIEW, JULY 1, 1936

E m p loy m en t and P ayrolls
B e tw e e n
th e

th e

num ber

fa c to r ie s

m id d le

of

A lt h o u g h

th e

o f A p r il

w ork ers

in c r e a s e d

r ic s , in d u c e d b y th e r is e in r a w

fo r

th e

in c r e a s e s

and

e m p lo y e d
in

th e
in

fo u r th

ea ch

of

m id d le

N ew

of

c o n s e c u tiv e
th e

M ay

Y ork

past

S ta te
m on th .

tw o

m on th s

m on th .
ch an ge
rose

c o tto n p r ic e s d u r in g th e

T h e g e n e r a t i o n o f e l e c t r i c p o w e r , wT i c h d o e s n o t
h
s u b s t a n t ia lly

fu r th e r

fr o m

d u r in g

M ay

th e

to

June

h a lf

fir s t

of

in

m ost

th e

years,

m on th ,

but

b it u m in o u s c o a l m in e s w e r e s o m e w h a t le s s a c t iv e t h a n in
M ay.

w e r e s m a ll, th e m o v e m e n t s w e r e c o n t r a r y t o th e u s u a l s e a ­
sonal

te n d e n cy

and

c o n s e q u e n tly

th is

b a n k ’s

ber 1930.
r a is in g
th e

F a ctory

th e

a d ju s t e d

h ig h e s t

num ber

p a y r o lls

p o in t

in d e x

s in c e

o f w ork ers

a ls o a d v a n c e d

in

u n s e a s o n a lly ,

a p p r o x im a te ly

A u gu st
th e

1931.

b u ild in g

2

per

cen t to

In crea ses

in

th e

m a te r ia l, m e ta l a n d

m a c h in e r y , a n d c h e m ic a l g r o u p s w e r e o ffs e t o n ly in p a r t
in d u s tr ie s .
th e

cou n try

as

a

w h o le ,

p r iv a te

e m p lo y m e n t

in

m a n u fa c t u r in g a n d n o n m a n u fa c t u r in g in d u s tr ie s c o v e r e d
b y r e p o r t s to th e D e p a r t m e n t o f L a b o r in c r e a s e d f o r th e
th ir d

c o n s e c u tiv e m o n th

in

th e p e r io d

b e tw e e n

A p r il 15

a n d M a y 1 5 , b u t th e in c r e a s e w a s s m a lle r t h a n
of

th e

tw o

p r e c e d in g

seasonal ten d en cy ,
w hat

fu r th e r

in

m on th s.

fa c to r y
M ay

C on tra ry

r a is in g

th e

e ith e r

th e

u sual

a d va n ced

e m p lo y m e n t

to

in

som e­

s e a s o n a lly

a d ju s t e d

in d e x 1 p e r c e n t to a le v e l a b o u t 5 p e r ce n t h ig h e r th a n a
y e a r a g o ; th e im p r o v e m e n t w a s la r g e ly

con cen tra ted

th e d u r a b le g o o d s in d u s t r ie s , w h ic h a s a g r o u p
g a in

o f 2 p e r c e n t in

th e

n o n d u r a b le

due

p r im a r ily

le a th e r

v o lu m e

o f in d u s tr ia l p r o d u c tio n , as m e a s u r e d

of

th e

The

F ed eral

in d e x

R eserve

sto o d

as c o m p a r e d w ith
M a y 1935.

S y ste m ,

at 101

per

1 00 in

a b le g o o d s

A p r il,

93

o f c a p a c ity , w e re 2 y

2

to

grou p

in

grou p

season al

r e g is te r e d

d ecreases

C om p ared
has show n

w ith

an

a s lig h t

in

th e

a year

in c r e a s e

th e n o n m a n u fa c tu r in g

o f th e

t e x t ile
ago

p e r c e n t h ig h e r th a n in

16

grou ps

in

e m p lo y m e n t

in d u s tr ie s

su rveyed

by

th e

e m p lo y m e n t

D ep a rtm en t

of

b u ild in g

g a in

w h ic h
in

th e

s iz a b le g a in s .

occu rred

rep orted

M a y th a n in A p r il.

15

in

p r iv a te

per

cen t

m ore

con ­

w ork ers

in

E m p lo y m e n t in a n th r a c ite c o a l m in ­

v a r io u s

s e r v ic e

in d u s t r ie s

a ls o

rep orted

E m p lo y m e n t in r e t a il t r a d e r e m a in e d p r a c ­

t ic a lly u n c h a n g e d , w h ile e m p lo y m e n t in w h o le s a le t r a d e

w hen

a s s e m b lie s

o p e r a t io n s
o f th e

in

d e c lin e d

rea ch ed

M ay

p r e c e d in g

w ere

th e
5

m on th ;

P r o d u c tio n
I n d u s t r ia l o u t p u t in
th e

u sual

c u r ta ilm e n t
e a r ly

p art

of

s la c k e n in g

in

a u t o m o b ile

of

in

g en era l d oes n o t a p p e a r to

seasonal

p r o d u c tio n

occu rred

th e

th e

m on th

la tte r

but w as

p a rt,

due

rep orted

to

w e ll

have

June.
to

S om e
in

have

s u s ta in e d

th e

w e ll

as

p r o d u c tio n

in c lu d e d

in

th e

r e c e iv e d

by

m a c h in e

season al

d e c lin e

been

s a le s o f c a r s .

S te e l m ills a p p a r e n t ly e q u a le d o r e x c e e d e d
le v e l

a verage

R e q u ir e m e n ts
t io n ,

of

ta in e d ,

and
of

and

d u r in g

ord ers

p r ic e s a fte r J u ly
d e c lin e s

th e

p r o d u c tio n

r a ilw a y ,

v o lu m e

th a t

of

in

som e

pron ou n ced

June
m ills

a u to m o b ile

d e c lin e d ,

as

th e

in d u s tr y

fo r

dem and

fo r

but

cou rse

booked

in

uses

of

w as

June

a

in

M ay.

s te e l

p r o d u c tio n

con stru c­

w e ll

m a in ­

c o n s id e r a b le

a n tic ip a tio n

a

r u le , b u t

in c r e a s e d

th is

o u tp u t

year

it

in s te a d ,

is

cotton

m ill

th e h ig h

ce n t b e lo w

ra te

of

b itu m in o u s

O u t p u t o f ir o n , le a d , a n d z in c ,
of

e le c tr ic

pow er

B o a r d ’s i n d e x , r o s e in
tool

b u ild e r s

fo llo w in g

th e

w h ic h

is

M ay, and

show ed

g a in

in

o n ly
th e

not

ord ers
a

s m a ll

p r e c e d in g

m on th .
(Adjusted for seasonal variations and usual year to year growth)
1935

1936

M ay

Mar.

Apr.

M ay

47
54
52
63

59
68
48
72

71
81
56
78

71
85
61
82

Automobiles
Passenger ca rs...............................................
M otor trucks.................................................

51
78

66
107

69
102

66
101

Fuels
Bituminous coal............................................
Anthracite coal..............................................
Petroleum, crude..........................................
Petroleum products......................................
Electric p ow er...............................................

72
82
68
65
72r

77
53
71
68
75

73
125
56
74
104

84
98
55
91
101

92
87
56
94
100

89
93
54
88
lO lp

72
78
87
81

86
89
112
87

83
83
84
90

81
81

45
53
74
60

49
64
72
80

58
83
70
96

Metals

Textiles and Leather Products
Cotton consum ption....................................
W ool consumption........................................
Silk mill a ctiv ity .......................................
R ayon deliveries*..........................................

of

Foods and Tobacco Products
Meat packing.................................................
W heat flour....................................................
Refined sugar deliveries..............................
T obacco products..........................................

89
77
72
69
76?)

80p
81p
73 p
78 p

84

Miscellaneous
Newsprint paper............................................
Machine tools................................................

59
7Op
97

h ig h e r

rep orted

fo llo w in g

th e m a rk et fo r co tto n

p Preliminary.

* For quarter ended.

B u ild in g

fo r

A c t i v i t y a t c o t t o n t e x t ile m ills a ls o

s t r e n g t h e n in g in




p r e v a ilin g

m is c e lla n e o u s

w as
1.

o p e r a t io n s

th e

th e a v e ra g e o f A p r il,

r e t a il

th e

cu rren t

A p r il a n d

season al p e a k ;

per

and

c o a l d e c lin e d 6 p e r ce n t.
as

g r a d u a lly

p e r c e n t b e lo w

d e c lin e d s o m e w h a t.

ch eck ed

in

d u r­

A p r il to M ay.

p r in c ip a l

show n

85

d u r in g

p r o d u c tio n

m on th , a n d w as 4 %

and

th e

The

and

M arch , a n d

M a y , a t 71 p e r cen t

d e c lin e ,

L a b o r s h o w e d in c r e a s e d e m p lo y m e n t f r o m

in g

M ay.

average

T h e ra te o f

show ed a

ers as in M a y 1 9 3 5 .

s tr u c tio n

in

1 9 2 3 -2 5

w e r e a t th e h ig h e s t p o in t s in c e A p r i l 1 9 3 0 .

t r ie s a r e e m p lo y in g p r a c t ic a lly th e s a m e n u m b e r o f w o r k ­

12

s lig h t ly

in

S te e l m ill o p e r a t io n s in

o f n e a r ly 11 p e r c e n t w h ile th e n o n d u r a b le g o o d s in d u s ­

in

rose

ce n t o f th e

th e n u m b e r o f e m p lo y e e s , w h e r e a s

goods

in d u s t r ie s .

A m ong

by

th e s e a s o n a lly a d ju s t e d in d e x o f th e B o a r d o f G o v e r n o r s

a u t o m o b ile

b y d e c r e a s e d e m p lo y m e n t in th e c lo t h in g , sh oe, a n d p a p e r
F or

The

a d ju s t e d

in d e x o f e m p lo y m e n t r o s e t o th e h ig h e s t le v e l s in c e O c t o ­

a

fa b ­

A

s la c k e n in g in s o m e t y p e s o f b u ild in g a c t iv it y d u r in g

M a y r e s u lte d in a d e cre a s e o f 8 p e r c e n t in t o ta l a w a r d s o f
b u ild in g
cov ered

and
by

th e

e n g in e e r in g

co n tra cts

F . W . D odge

in

th e

C o r p o r a tio n

d e c lin e w a s c o n fin e d t o th e h e a v y e n g in e e r in g
n o n r e s id e n tia l

ty p es

of

b u ild in g ,

and

37

S ta te s

rep orts.
and

r e s id e n t ia l

The
oth er
con ­

t r a c t s s h o w e d a f u r t h e r in c r e a s e

o f 5 p e r ce n t, co n tr a r y

to th e u su a l se a so n a l m o v e m e n t.

T o t a l c o n tr a c ts in M a y

FEDERAL RESERVE AGENT AT NEW YORK
w e re a b o u t 7 0 p e r ce n t a b o v e th o se p la c e d

in

th e

55

PER CENT

corre­

s p o n d in g m o n th o f 1 9 3 5 ; c o n tr a c ts f o r h e a v y e n g in e e r in g
p r o je c t s w e r e m o r e th a n d o u b le th e v o lu m e o f a y e a r a g o ,
a n d r e s id e n t ia l b u ild in g c o n t r a c t s w e r e 5 6 p e r c e n t la r g e r
th a n in M a y
In

1935.

th e S e co n d

F e d e r a l R e s e r v e D is t r ic t th e d e c lin e in

to ta l b u ild in g c o n s tr u c tio n fr o m

A p r il to M a y w as som e­

w h a t m o re p r o n o u n c e d th a n in o th e r a rea s d u e p r in c ip a lly
to a s h a r p e r r e d u c tio n in c o n tr a c ts f o r p u b lic w o r k s a n d
u t ilit ie s .

R e s id e n t ia l c o n t r a c t s in th is d is t r ic t , h o w e v e r ,

in c r e a s e d

som ew h at

m ore

th a n

in

th e

to ta l

of

th e

37

S ta te s.
D a t a f o r th e fir s t h a lf o f J u n e in d ic a t e a fu r t h e r s lig h t
r e d u c tio n in th e v o lu m e o f to ta l b u ild in g c o n tr a c ts in
S ta te s.

37

D e c lin e s in th e c la s s ific a t io n s e m b r a c in g r e s id e n ­

tia l a n d

n o n r e s id e n tia l b u ild in g

oth er th a n

heavy

e n g i­

n e e r in g w o r k w e r e la r g e ly o ffs e t b y a n in c r e a s e in a w a r d s

Indexes of Sales in Three Major Types of Retail Trade (Adjusted for
seasonal variation; 1929-31 average — IOO per cent)

f o r p u b lic w o r k s a n d u t ilit y p r o je c t s .
In d e x e s

o f B u s in e s s

A c t iv ity

c e p tio n

D u r i n g th e fir s t h a l f o f J u n e s o m e s la c k e n in g a p p e a r s

o f tw o m o n th s in

s a le s h a v e b e e n

1934, u rban

a t a c o n s id e r a b ly

d e p a r tm e n t sto re

lo w e r le v e l r e la tiv e

to

to h a v e o c c u r r e d in th e u p w a r d m o v e m e n t in th e v o lu m e

th e 1 9 2 9 -1 9 3 1 v o lu m e th a n th e o t h e r t y p e s o f r e t a il t r a d e

o f d is tr ib u tio n o f g o o d s th a t w a s e v id e n t in M a y .

s in c e

N ew

Y ork

m a in e d

M e tr o p o lita n

w e ll

above

area

a year

d ep a rtm en t

ago,

but

sto re

appear

I n th e
s a le s

to

re­

have

ad­

th rou g h ou t

of
th e

C om m erce
U n ite d

on

r e t a il

S ta te s

tra d e

in d ic a te

in

th a t

36

sto re

of

1933.

s a le s

in

Th^

M ay

a d ju s t e d

1936

w as

s a le s

1935

a year

ago, ad verse
w arm

e ffe cts w e r e

w ea th er

in

fe lt

som e

fr o m

p a rts

d rou gh t

of

th e

and

M ay

L ittle ch a n g e fr o m

th e M a y

Primary Distribution
Car loadings, merchandise and m isc........
Car loadings, oth er.......................................

th e

m e r c h a n d is e

and

m is c e lla n e o u s

or

b u lk

fr e ig h t

grou ps.
In crea ses

p r e d o m in a te d

in

M ay

u r e s o f g e n e r a l b u s in e s s a c t iv it y
g o o d s , th e m ost p r o n o u n c e d
tra d e.

T h e a c c o m p a n y in g

th ree

im p o r ta n t

lin e s

of

am ong

v a r io u s

d ia g r a m
r e t a il

m eas­

a n d th e d is tr ib u tio n

g a in s t a k in g

p la c e

sh ow s th e

t r a d e — s a le s

in

cou rse
of

of

r e t a il
of

gen eral

m e r c h a n d is e in s m a ll t o w n s a n d r u r a l a r e a s , d e p a r t m e n t
store

s a le s in

u rban

lo c a lit ie s ,

and

v a r ie ty

sto re

s a le s —

e a c h a d ju s t e d f o r th e u s u a l s e a s o n a l v a r ia t io n s , a n d o n a
1 9 2 9 -1 9 3 1 b a s e .

S in c e 1 9 2 9 c o n s id e r a b le d iffe r e n c e s h a v e

occu rred

m ov em en ts

in

th e

of

th e

th re e

typ es

b u t in e a c h ca s e a n u n s e a s o n a l in c r e a s e in
th e in d e x u p

to th e h ig h e s t p o in t in

M ay

of

tra d e

b rou gh t

several years.

The

i n d e x o f s a le s o f g e n e r a l m e r c h a n d is e i n s m a ll t o w n s a n d
r u r a l a re a s, w h ic h
ch ases

of

goods

a m p litu d e

of

by

r e fle c ts t o
fa rm e rs,

m ovem ent

th a n

1 92 9 p e a k to th e 1 9 3 3 lo w

a c o n s id e r a b le
has
th e

show n
oth er

a

e x ten t p u r ­
m u ch

tw o;

in

p r o g r e s s w h ic h

p o in t th ere w a s a d r o p
h a s r e s u lte d

in

th e

M ay

65
59
52
74r

66
67
52
71

66
72
59
72

72
69
60
77
74
64
59
84

78
75
61
81
95
65
85
87

76r
71r
61
85
83r
66
81p
88

82
76
59
88
90
68
75p

65
43r

66
45r

66
41r

65 v
4 2p

65

72

71

70

New life insurance sales..............................
Factory employment, United States........
Business failures............................................
Building contracts........................................
New corporations formed in N. Y . State.

41
54
82
43
25
55

48
49
85
35
41
54

43
49
86
33
45
53

40
53
87 p
35
43p
55

General price level*......................................
Composite index of w ages*........................
Cost of livin g *...............................................

143
186
140

151
189
141

150
188
141

150p
189p
142

Distribution to Consumer
Department store sales, U. S .....................
Department store sales, 2nd D ist.............
Chain grocery sales......................................
Other chain store sales................................
Mail order house sales.................................
Advertising.....................................................
New passenger car registrations...............
Gasoline consum ption..................................
General Business Acitivity
Bank debits, outside New Y ork C it y .. . .
Bank debits, New York C ityr...................
Velocity of demand deposits, outside New
York C it y ...................................................
Velocity of demand deposits, New York

of

p Preliminary.

th e
66

F o r e ig n

recovery

o f 7 0 p e r c e n t o f t h e lo s s , a n d t h e M a y i n d e x r e a c h e d t h e
h ig h e s t p o in t s in c e D e c e m b e r 1 9 2 9 .

Apr.

w id e r

fr o m

p e r c e n t , b u t s in c e t h a t t im e a m a r k e d u p w a r d m o v e m e n t
has been

Mar.

58
60
47
69

le v e l o c c u r r e d in th e m o v e m e n t o f r a ilr o a d fr e ig h t , e ith e r
in

of
th e

cou n try .

W h o le s a le tr a d e g a v e e v id e n c e o f b e in g w e ll m a in ta in e d
d u r in g th e fir s t h a lf o f J u n e .

in d e x
about

1936

c o n tin u e d to r u n h ig h e r th a n in th e c o r r e s p o n d in g p e r io d
u n u s u a lly

at

(Adjusted for seasonal variations, for usual year to year growth,
and where necessary for price changes)

citie s

w h ile

sum m er

sa m e le v e l as in A u g u s t 1 9 3 1 .

v a n c e d le s s t h a n s e a s o n a lly o v e r M a y , a n d r e p o r t s t o th e
D ep a rtm en t

th e

d e p a rtm en t

T h e d e c lin e in v a r ie t y

in c r e a s e d

000 , 0 0 0 ,

* 1913 average = 100.

T ra d e

M e r c h a n d is e
M ay

r Revised.

w h ile

e x p o rts

fr o m

u n s e a s o n a lly
im p o r ts

th e
and

show ed

U n ite d
w ere

th e

S ta te s

v a lu e d

u s u a l s lig h t

d u r in g

at

$ 2 0 1 ,-

decrease

s t o r e s a le s w a s m u c h le s s s e v e r e , a m o u n t in g t o 3 5 p e r c e n t,

and

a n d o f th is o v e r t w o -t h ir d s h a s b e e n r e c o v e r e d .

0 0 0 ,0 0 0 e x p o r t b a la n c e w a s th e fir s t t o o c c u r s in c e J a n u ­

T he con ­

w ere

v a lu e d

at

$ 1 9 1 ,0 0 0 ,0 0 0 .

The

r e s u lt in g

$ 1 0 ,-

t r a c t io n in d e p a r t m e n t s t o r e s a le s in u r b a n lo c a lit ie s w a s

a r y , a n d c o m p a r e d w i t h a n e x c e s s o f i m p o r t s o f $ 5 ,0 0 0 ,0 0 0

g rea ter

in

th a n

in

v a r ie ty

s to re

s a le s

but

le s s

th a n

in

th e

M ay

o f la s t y e a r .

E x p orts

show ed

a g a in

g e n e r a l m e r c h a n d is e s to r e s, a n d n o t m u c h m o r e th a n h a lf

cen t a n d

o f th e lo s s h a s b e e n r e g a i n e d ; c o n s e q u e n t ly , w it h th e e x -

c o n t in u in g th e in c r e a s e s o f th e p a s t t w o y e a r s .




im p o r ts

a g a in

of

12

per

cen t

of

over M ay

22

per

1935,

MONTHLY REVIEW, JULY 1, 1936

56

D ep a rtm en t

T h e v a lu e o f a ll m a n u fa c t u r e d p r o d u c t s e x p o r t e d d u r ­
in g

M ay

r e m a in e d

p r e c e d in g

m on th ,

at

about

but

th e

sam e

a ccou n ted

fo r

le v e l

as

sto re

s to ck s

of

th e

r e t a il v a lu a t io n , w e r e s lig h t ly

m ore

th e s e c o n d c o n s e c u tiv e m o n th .

in

c o n s id e r a b ly

t h a n h a lf o f th e in c r e a s e o v e r a y e a r a g o in t o t a l e x p o r ts .

th e

E x p orts

fin is h e d

p ro d u cts

in

a

m a jo r ity

of

ca ses

sto re s

w as

on

hand,

la s t y e a r

at
fo r

T h e ra te o f c o lle c tio n s in

1935.

of

d ep a rtm en t

m e r c h a n d is e
h ig h e r th a n

s lig h t ly

lo w e r

th a n

in

M ay

s h o w e d la r g e r g a in s o v e r 1 9 3 5 th a n in A p r i l ; th e in c r e a s e
over

a

year

ago

in

num ber

of

m o to r

tru ck s

ex p o rte d

c e n t, a lth o u g h th e a c c o m p a n y in g in c r e a s e s in v a lu e w e r e
not

as

la rg e ,

a p p a r e n tly

due

to

th e

s a le

abroad

la r g e r p r o p o r t io n o f lo w e r p r ic e d c a r s th is y e a r .

of

a
Locality

N o ta b le

in c r e a s e s o v e r a y e a r a g o lik e w is e o c c u r r e d in e x p o r t s o f
a g r ic u ltu r a l,

in d u s tr ia l

and

m a n u fa c t u r e s , a n d r e fin e d
p u rch a ses
in

o f A m e r ic a n

A p r il,

co n tra ry

to

e le c tr ic a l

p e tr o le u m

cotton
th e

m a c h in e r y ,
p ro d u cts.

w ere

s lig h t ly

la r g e r th a n

u su a l season al te n d e n cy ,

and

s h o w e d in c r e a s e s o v e r a y e a r a g o o f 2 2 p e r c e n t in v o lu m e
and

18

per

A m ong

c e n t in

th e

v a lu e .

in d iv id u a l

a g o w e r e n o t as u n ifo r m

im p o r ts ,

r e c e ip t s

p ro d u cts,
le u m ,

55

per

to

an

q u a n tity

num ber

a ls o

in

On

s e a s o n a lly

R e c e ip ts

of

in c r e a s e

in

over

lik e w is e

sugar

cru d e
a

year

ra w

year

cru d e

hand,

in

m a jo r

o f w h ic h

fr o m

a g a in

th e

show ed

R e la t iv e ly

occu r

in

of

due

in c r e a s e s
w ood

a n d p a p e r p r o d u c ts , b e v e ra g e s, w o o l, a n d c o tto n .

W h o le s a le
D u r in g
fir m s in
lo w e r
The

S to re

T ra d e

to ta l

th a n

of

s a le s

la s t y e a r ,

d e c lin e s
th e

in

th e

and

sto re s in

th e

M e tr o p o lita n

area

of

N ew

of

s ilk

S hoe

p e r io d

th a n

year

ago,

but

show ed

u s u a l se a s o n a l e x p a n s io n
T ota l

M ay

s a le s

of

som ew hat

le s s

th a n

th e

over M ay.

th e

grocery,

fir s t
in

dru g,

goods

w ere

d ep a rtm en t

a

sto re s

con cern s

a g a in

rep orted

a y e a r a g o , a lth o u g h

th e

s h o p p in g

M ay

in

th e

d a ily

in cr e a s e

ra te

s in c e

of

s a le s

M arch

w as

1934.

and

13

per

The

s to r e s in a ll lo c a lit ie s r e c o r d e d

la s t, th e
ce n t,

in c r e a s e

th e

r e p o r tin g

r e g is te r in g

C it y , N o r t h e r n

N ew

r e g is te r e d

th e la r g e s t a d v a n c e s in

2 yea rs o r m ore.
w as

D is tr ic t, a n d

rep orted

A n

a ls o

N ew

th e

th e

W estch ester

Y ork

d a ily

and

to

d ep a rtm en t

year

c o m p a r is o n

R o ch e ste r,
la rg e r
m on th s.

sto re s

and

of

th a n
s to re s

th e

a lm o s t

B r id g e p o r t

a d va n ces
S a le s

in

m ade

in
in

a

stores
th e

m ost

N ia g a r a

Y ork
year

B u ffa lo ,

c o n s id e r a b ly

im m e d ia te ly
F a lls

p r e c e d in g

and

C en tra l

N e w Y o r k S ta te , s h o w n s e p a r a t e ly f o r th e fir s t tim e , w e r e
a ls o

s u b s t a n t ia lly

la r g e r

th a n

a year

ago.

le a d in g a p p a r e l s to r e s in th is d is t r ic t w e r e

S a le s




of

th e

1 5 .3 p e r c e n t

h ig h e r th a n la s t y e a r , a la r g e r in c r e a s e t h a n

con ­

a year

h ig h e r

th a n

la s t

yea r,

a

lo w e r

v o lu m e

of

s a le s

d e c r e a s e w a s n o t a s la r g e
g o o d s a n d je w e lr y

th e

la r g e s t g a in

s in c e

S ep tem b er

th e la r g e s t a d v a n c e

s in c e

Per cent of
accounts
outstanding
April 30
collected in
M ay

Net

Stock
end of
month

1935

1936

9 4.0
35.7
39.7
67.1
38.2
29.4
47.3
58.6
4 9.6
21.8

87.9
34.4
40.9
64.4
4 3.9
38.0
46.4
59.6
61.6
} 21.7

56.2

55.4

S ta m fo rd

and

show ed

paper

th e
and

Comm odity

s a le s in

fa v o r a b le

y ea r;

and

Percentage
change
M ay 1936
compared with
M ay 1935

s a le s
S ta te ,

s t o r e s ; t h e d a ily r a t e o f s a le s in t h e S o u t h e r n N e w
S ta te

yea r.

m on th s,

c o m p a r is o n s w ith

e x c e p t i o n a l l y la r g e i n c r e a s e i n s a le s
by

of

a

la r g e s t

C a p it a l D is tr ic t,

a verage

num ber

d ep a rtm en t

s u b s t a n t ia l g a in s in

J ersey , N orth ern

R iv e r V a lle y

over

record ed

1934.

o v e r la s t y e a r , a n d s e v e r a l lo c a lit ie s , in c lu d in g N e w Y o r k

H udson

in

con cern s

T h e cotton

1 9 3 5 , a n d th e la tte r r e c o r d in g

year

d ecrease

w h o le s a le
1 p e r cen t

fir m s , h o w e v e r , s h o w e d s a le s w e ll a b o v e la s t y e a r ’s le v e l,
th e fo r m e r

th is

r e p o r tin g

H a r d w a r e s a le s a n d y a r d a g e s a le s

a ft e r m a k in g a llo w a n c e f o r d iffe r e n c e s in th e n u m b e r o f
b e tw e e n

th e

a p p r o x im a te ly

s ta t io n e r y ,

in th is d is t r ic t w e r e 9 p e r c e n t h ig h e r t h a n la s t y e a r , a n d
days

4 5.2

s u b s t a n t ia lly

as in th e p r e v io u s m o n th .

r e p o r tin g

46.9

4 6.8

b u t th e in c r e a s e s r e p o r t e d w e r e n o t a s la r g e a s in A p r i l.

Y o r k w e r e 9 .1 p e r c e n t h i g h e r t h a n i n t h e c o r r e s p o n d i n g
a

4 7.3

+ 12.0

d ia m o n d

s a le s

a g o in 4 to 5 m o n th s .
d ep a rtm en t

of

th is d is t r ic t a v e r a g e d

c e r n s m a d e th e le a s t fa v o r a b le

D u r i n g t h e fir s t h a l f o f J u n e , t o t a l s a le s o f t h e r e p o r t ­
in g

+ 0 .7

+ 15.3

T ra d e

M ay

m e n ’s c lo t h in g

la r g e s t
s a le s

D e p a rtm e n t

+ 9 .0

Apparel stores............................................

an

s u b s t a n t ia l

n ic k e l,

50.4
48.1
47.7
39.3
4 1 .8
40.6
36.6

—
+
—
—
+
+
—

and

w as

la r g e

im p o r ts

1936

50.5
4 8 .4
46.6
3 8.6
4 3.7
3 9.8
3 5.3

All department stores..............................

P h ilip p in e s .
a

1935

+ 8 .2
+ 1 4 .6
+ 6 .3
+ 7 .0
+ 1 1 .1
+ 6 .9
+ 1 3 .2
+ 7 .2
+ 4 .8
+ 1 1 .2
+ 1 3 .3
+ 10.3
+ 3 3 .0
+ 1 5 .1

of

show ed

q u a n tity

Stock
on hand
end of
month
0 .1
9 .6
5 .8
4 .8
5 .9
1 .8
4 .0

New Y o rk ............................................................
Buffalo.................................................................
R ochester.............................................................
Syracuse...............................................................
Northern New Jersey......................................
Bridgeport...........................................................
Elsewhere............................................................
Northern New York S tate.........................
Southern New York S tate..........................
Central New York State.............................
Hudson River Valley D istrict...................
Canital D istrict..........................................
Westchester and Stam ford.........................
Niagara F alls.................................................

p etro­

r e c e ip t s

A p r il,

p art

im p o r ts

in

a n im a l fo o d

s ilk ,

oth er

th a n

ago.

to

of

th e

ru bber

c o n tin u e d

a

occu rred

and

o f 22 p e r c e n t in

v a lu e , th e

in c r e a s e

a n d v a lu e

v e g e ta b le

le s s

over a year ago
ce n t in

of

im p o r ts

fe r t iliz e r s .

w h ile

in c r e a s e

a

and

and

su ga r,

of

over

in M a y as in m o s t r e c e n t m o n th s .

S u b s t a n t ia l d e c r e a s e s in
th e

in c r e a s e s

Net
sales

w ood

F o r e ig n

Per cent of
accounts
outstanding
April 30
collected in
M ay

Percentage
change
M ay 1936
compared jwith
M ay 1935

a m o u n te d to 7 3 p e r c e n t a n d in p a s s e n g e r ca r s to 31 p e r

in A p r il.

Groceries.......................
M en’s clothing.............
Cotton go o d s................
R ayon and silk g o o d s.
S hoes..............................
Drugs.............................
Hardware......................
Stationery.....................
P ap er.............................
D iam onds.....................
Jew elry..........................
W eighted average.

+ 2 .4
— 20.4
+ 2 1 .7
+ 1 8 .6 *
— 10.8
+ 5 .5
+ 1 3 .4
+ 6 .6
— 0 .2
— 10.0
+ 4 6 .3
— 0 .8

— 9 .0

+ 2 6 .1
+ 1 7 .3
— 6 .4
+ 8 5 .4

Q
uantity figu reported by the N
res
ational F
ederation of T
extiles, Incorporated,
not includedinw tedaverage for total w olesaletrade.
eigh
h

FEDERAL RESERVE BANK OF NEW YORK
M O NTH LY REVIEW , JU LY 1, 1936
B u s in e s s C o n d i t i o n s in t h e U n it e d S ta t e s

(Summarized by the Board o f Governors o f the Federal Reserve System)
OLUME o f industrial production, which had increased sharply in April,
was maintained in May, and there was an increase in distribution o f
commodities to consumers.

V

P r o d u c t io n

Index Number of Production of Manufactures and
Minerals Combined, Adjusted for Seasonal
Variation (1923-25 average = 100 per cent)

Index Numbers of Factory Employment and Pay­
rolls, Without Adjustment for Seasonal Varia­
tion (1923-25 average = 1 0 0 per cent)
PER CENT
/ ---------

and

E

m ploym ent

The B oard’s seasonally adjusted index o f industrial production in May
was 101 per cent o f the 1923-1925 average, as compared with 100 per cent in
April. Production o f durable manufactures increased further, reflecting larger
output o f steel and lumber, partly offset in the total by a reduction in the
output of automobiles from the high level o f April. A t steel mills the rate o f
activity in May was higher than at any other time since the spring o f 1930.
This level has been maintained in June, reflecting in part some accumulation o f
steel by fabricators in advance o f the effective date of recently announced price
increases. Declines in production were reported for many nondurable manu­
factures; at woolen mills, however, activity increased. Output o f bituminous
coal declined from April to May, while output o f crude petroleum continued
in large volume.
Factory employment increased slightly between the middle o f April and
the middle o f May, contrary to the usual seasonal tendency. Increases were
reported at plants producing iron and steel products, machinery, and most other
durable manufactures. Changes in employment in industries producing non­
durable manufactures were largely o f a seasonal nature. Factory payrolls were
somewhat larger in the middle o f May than a month earlier.
Total value o f construction contracts awarded, according to figures o f the
F. W. Dodge Corporation, declined slightly from April to May. Awards for
residential building continued to increase and in May, as in other months this
year, were substantially larger than a year ago when residential building was
first beginning to increase from the extreme low level o f the depression.
D is t r ib u t io n

>■ --)
)
)

V

s.

F
OODS

OTHER

cCOMMODITIES—/f r j y
WLXJu*

\

r

)

X /'V i
\f

w
V

PRODUCTS
)

|

1929 1930 1931 1932 1933 1934 1935 1936
Group Price Indexes of the Bureau of Labor
Statistics (1926 average = 100 per cent)

Department store sales, which usually decline at this season, increased from
April to May and there was also a rise in sales at variety stores and mail order
houses. Freight car loadings increased by slightly more than the usual seasonal
amount.
Co m m o d it y P

B

(Latest figures are for June 17)




r ic e s

Wholesale prices o f commodities, which had declined from the middle o f
April to the middle o f May, have advanced somewhat sinee that time and in the
week ended June 20 were at 78.7 per cent o f the 1926 average, according to the
index o f the Bureau o f Labor Statistics. In recent weeks prices o f livestock
and livestock products, grains and flour, and textile raw materials and finished
products have advanced. For many steel products price increases have been
announced to take effect early in the third quarter.
ank

C r e d it

Excess reserves o f member banks, after a slow increase in May and the
early part o f June, declined by $900,000,000 in the week ended June 17. The
reduction in excess reserves was due principally to an increase in the deposits
maintained at the Reserve Banks by the Treasury, which received large payments
for new securities issued, as well as quarterly tax installments. A t that time the
Treasury began to distribute checks and adjusted service bonds to veterans and
there was an increase in the demand for currency in connection with the cashing
o f these bonds and checks.
United States Government obligations held by reporting member banks in
leading cities, which had increased somewhat in May and early June, showed
a further sharp increase in the week ended June 17 in connection with the new
issue o f Government securities. Bank loans also increased.