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N um ber 4 A t la n t a , G e o r g ia , A p r i l 3 0 ,1 9 4 1 V o lu m e X X V I T h e R is in g T r e n d R e c o n n a is s a n c e D is t r ic t S u m m a ry PEH CENT DECREASE * PER CENT INCREASE o f B u s in e s s C o n d itio n s o f C u r r e n c y C ir c u la tio n R e t a ii k a le s T ra d e and in d u s t r ia l a c t iv it y in O ne th e a t a h ig h le v e l in C o n tra c tJ M a r c h . D is t r ib u t io n c ir c u la t io n th a n e x p e c te d , a n d lif e m ig h t h ave in s u r a n c e C o tto n C been s a le s m o st th e p a st p e r s is t e n t d ecad e in c r e a s e in been c u r r e n c y in in th e U n it e d S t a t e s . B e g in 1 9 3 1 , th e u m e o f n o te s a n d c o in s o u ts ta n d in g has P ig I r o n in tre n d s has g w it h a s h a r p in c r e a s e in s a le c h a n n e ls in c r e a s e d , b u t b y a m o u n ts le s s th e th e c o n t in u in g o f m e rc h a n d is e th ro u g h r e t a il a n d w h o le s lig h t ly of th ro u g h o u t S ix t h F e d e r a l R e s e r v e D is t r ic t c o n tin u e d g ro w n m o re or le s s s t e a d ily b o th c re a s e d s u b s t a n t ia lly . C o m m e r c ia l f a i l d u r in g th e y e a r s o f b u s in e s s d e c lin e in u r e s in c r e a s e d in th e e a r ly but w e re w e re a m o n th d a ys, F e b ru a ry a n d M a rc h s u b s t a n t ia lly le s s y e a r a g o . M a rc h th a n and F e b ru a ry t h is th a n w as a b y tw o d iffe r e n c e th e y lo n g e r Pa b u s in e s s of 8 .3 Bank in p ig ir o n fa c t, th e c o tto n D is t r ic t m ills a n d p r o d u c t io n . A s a m a t t e r o f a c tu a l co n su m e d num ber in of M a rc h th a n h a d b e e n u s e d in b a le s g ro w t h p r e s e n t . T h is se a so n a l s e r ie s , b y th e s h a r p d u r in g m o re of th e p e a k m a r k in g p a tt e r n th e b a n k in g c r is is o f 1 9 3 3 , a n d b y th e p a u s e in d e x e s r e f le c t in g th e d a ily r a t e s o f c o tto n c o n s u m p tio n b y th e y e a r s th e c h a r a c t e r is t ic tm e n ts B an k Lo an s th e d u r in g th e m id d le 1 9 3 0 ’ s to th a n a d e c a d e , p u n c tu a te d o n ly b y th e per c e n t a c c o u n ts f o r s m a ll d e c lin e s in 1 9 3 0 ’s a n d o f re c o v e ry fro m 30 30 20 10 10 20 Sixth District Statistics for Marcli 1941 coaputd with March 1940 of a n y p r e v io u s m o n th , a n d th e a c t u a l a n y o th e r in 1937 and e a r ly 1938, s h o w s a t p r e s e n t n o s ig n s o f s to p p a g e o r r e v e r s a l. T h e c ir c u la t io n to d a y — a l m o s t $ 9 b illio n — i s a p p r o x im a t e ly tw ic e w a s la r g e r o u tp u t o f p ig ir o n in A la b a m a w a s la r g e r th a n in n o t ic e a b le th e a v e r a g e c ir c u la t io n o f t h e 1 9 2 0 ’ s . I t s h o u ld a ls o b e n o te d t h a t , a s m a y b e s e e n in th e c h a r t , th e d e n o m in a tio n a l c o m m o n th e x c e p tin g th e m o n th o f D e c e m b e r 1 9 4 0 . C o a l p r o d u c p o s it io n o f th e c u r r e n c y h a s b e e n g r e a t ly a lt e r e d th ro u g h th e t io n p e r io d , s in c e a ls o in c r e a s e d , b u t c o n s t r u c t io n c o n tra c ts a w a rd e d in th e c ir c u la t io n o f n o te s o f $ 5 0 a n d o ver has in c r e a s e d m u c h m o re r a p id ly th a n t h a t o f th e t o t a l. M a r c h d e c lin e d . in c r e a s e d 2 4 p e r c e n t in ► T h e g ro w th in th e v o lu m e o f c u r r e n c y h a s b e e n s o p e r s is t e n t t h is D is t r ic t in M a r c h o v e r F e b r u a r y , b u t o n a d a ily a v e r a g e D e p a rtm e n t s t o r e s a le s a c t u a lly a n d s o p ro n o u n c e d t h a t i t h a s a ttr a c te d c o n s id e r a b le a t t e n t io n , b a s is t h e g a in w a s 1 5 p e r c e n t. T h is r is e i s s lig h t ly le s s th a n m o re , p r o b a b ly , th a n it s im p o r ta n c e s in c e 1 9 3 3 d e s e rv e s . T o m ig h t h a v e b e e n e x p e c te d o n th e b a s is o f p a s t p e r fo r m a n c e , a p p r a is e it s s ig n if ic a n c e p r o p e r ly i t is n e c e s s a r y to r e c a ll t h a t and th e in o u r m o n e ta ry s y s te m d e c lin e d in c ir c u la t io n o c c u r d ir e c t ly in a f t e r a llo w a n c e fo r s e a s o n a l in f lu e n c e s , in c lu d in g la t e r d a te o f E a s t e r t h is y e a r , th e a d ju s t e d in d e x c h a n g e s in th e v o lu m e o f c u r r e n c y re s p o n s e to th e d e m a n d s o f 2 p e r c e n t . T h e M a r c h in d e x w a s , h o w e v e r , s t i l l a b o v e t h a t th e p u b lic , a n d f o r M a r c h la s t y e a r a n d w a s a t a le v e l t h a t h a d b e e n e q u a lle d F e d e ra l R e s e rv e B a n k s o n ly th e f ir s t in s t a n c e h o w m u c h c u r r e n c y t h e re s h a ll b e in o n ce, an d n e v e r e x c e e d e d , in M a rc h o f any p r e v io u s y e a r . F o r th e c o u n t r y a s a w h o le , th e B o a r d ’ s a d ju s t e d in d e x i t i s , t h e r e fo r e , th e p u b lic o r th e T r e a s u r y r a t h e r th a n th e t h a t d e te rm in e s in c ir c u la t io n a t a n y t im e . W h y t h e p u b lic m a y d e c id e to h o ld m o re c o n tin u e d in M a r c h a t t h e F e b r u a r y le v e l a n d w a s 1 6 p e r c e n t c u r r e n c y c a n o f c o u r s e b e t r a c e d to m a n y t h in g s , in c lu d in g a b o v e th a t f o r M a rc h 1 9 4 0 . In th e a c t io n s o f th e G o v e rn m e n t, th e R e s e r v e S y s t e m , th e c o m w h ic h in c lu d e d re p o rt e d in p re - E a s te r t h e f ir s t tw o w e e k s o f A p r i l, b u s in e s s , in t h is D is t r ic t t h a t in c lu d e d th e m o n t h ly in d e x w e re 3 2 p e r c e n t g r e a t e r th a n in c o r r e s p o n d in g y e a r). Fo r p e r io d th e la s t y e a r c o u n try th e ( E a s t e r w a s in g a in fo r w a s 2 7 p e r c e n t. W h o le s a le s a le s in 9 p e r c e n t fro m u s u a l r is e in s a le s b y a s m a lle r n u m b e r o f f ir m s t h a n th e th e M a rc h tw o - w e e k th e la s t F e b r u a r y to M a r c h , s o m e w h a t le s s th a n th e a t t h a t t im e , a n d w e r e 1 4 p e r c e n t g r e a t e r th a n b e n o tic e d b e lo w . I t in t oc o m c irecsu la t io n r e m a in s in F e b ru a ry an d t r u e , h o w e v e r, t h a t c u r r e n c y a c c o rd a n c e w it h p u b lic dem and. T h e a u t h o r it y o f th e g e n e r a l p u b lic in t h is d o m a in i s e a s y p e r io d D is t r ic t in c r e a s e d M a r c h 1 9 4 0 . B u s in e s s f a ilu r e s in c r e a s e d in m e r c ia l b a n k s , o r o th e r g r o u p s , a n d so m e o f th e s e f a c t o r s w i l l C u r r e n c y i n C ir c u la t io n 1 9 2 2 to D a te B ill io n s o f D o lla r s 20 M o n t h l y R e v ie w o f t h e f e d e r a l R e s e r v e B a n k o f A t l a n t a f o r A p r i l 1 9 4 1 CONDITION OF FEDERAL RESERVE BAKE OF ATLANTA (In Millions ol Dollars) Per Cent Change April 16,1941,from April 16 Mar. 12 April 17 Mar. 12 April 17 1941 1941 1940 1941 1940 Bills discounted...................... $ .06 $ .01 f .2 +500 — 70 Industrial advances........................ 2 .3 .8 — 33 — 75 U. S. securities........................ 94.9 91.1 104.2 + 4 — 9 Total bills and securities........ 95.2 91.5 105.2 + 4 — 10 F. R. note circulation............... 205.2 200.8 159.6 + 2 + 29 Member bank reserve deposits... 288.7 277.3 235.1 + 4 + 23 U. S, Gov't general deposits...... 26.9 11.5 32.2 +134 — 16 Foreign banc deposits.............. 27.8 26.9 13.4 + 3 +107 Other deposits....................... 5.7 5.9 6.8 — 3 — 16 Total deposits...................... 349.2 321.5 287.5 + 9 + 21 Total Reserves......................... 461.8 436.2 346.7 + 6 + 33 Industrial advance commitments........ .... CONDITION OF 22 MEMBER BANKS IN SELECTED CITIES (In Millions ol Dollars) per c«nt Change April 16,1941,from April 16 Mar. 12 April 17 Mar. lz April 17 1941 1941 1940 1941 1940 Loans and Investments—Total... £703.0 $702.8 $633.9 + 0 + 11 Loans—Total.......................... 375.6 376.6 306.9 — 0 + 22 Commercial, industrial and _ agricultural loans............... 198.5 198.1 159.6 + 0 + 24 Open market paper............... 5.0 5.2 3.9 — 4 + 28 Loans tobrokers and dealers 7.1 5.4 — 0 +30 in securities...................... 7.0 Other loans for purchasing 11.4 10.7 •— 2 + 5 and carrying securities....... 11.2 Real estate loans.................. 35.8 35.5 31.3 + 1 + 14 Loans to banks..................... 1.2 1.2 .6 +100 Other loans.......................... 117.0 118.0 95.5 — 0 + 23 Investments—Total.................. 327.3 326.2 327.0 + 0 +0 153.4 151.5 + 3 +4 U. S. direct obligations........... 158.2 Obligations guaranteed by , U.E....... ........................ 53.2 56.8 69.6 — 4 — 24 Other securities................... 115.9 116:1 105.8 — 0 +10 Reserve with F. R. Bank........... 172.4 173.8 139.7 — 0 + 23 16.3 13.0 — 9 +14 Cash in vault.......................... 14.8 Balances with domestic banks--- 268.2 250.9 237.7 + 7 + 13 Demand deposits-adjusted........ 483.9 479.7 413.0 + 1 + 17 Time deposits.......................... 193.0 189.6 190.3 + 2 + I U. S. Government deposits........ 34.3 28.7 43.4 + 20 — 21 384.8 318.4 + 0 + 21 Deposits of domesticbanks....... 386.4 Borrowings.................................... .... •••• ••• • ... DEBITS TO INDIVIDUAL ACCOUNTS (In Thousands ol Dollars) per Cent Change Mar. Feb. Mar.Mar. 1941from ALABAMA 1941 1941 1940 Feb.1941Mar.1940 Birmingham............... $ 119,841 $ 101,951 $ 98,601 + 18 + 22 Dothan..................... 3,963 3,297 2.966 + 20 + 34 Mobile...................... 54,569 45,741 40,978 + 19 + 33 27,197 24,688 22,664 + 10 + 20 Montgomery.............. FLORIDA Jacksonville............... 122,035 102,718 89,519 + 19 + 36 84,313 77,259 71,151 + 9 + 18 Miami...................... Pensacola.................. 12,013 10,400 9,533 + 16 + 26 Tampa...................... 40,522 36,504 35,366 + 11 + 15 GEOBGIA Albany...................... 6,568 5,697 5,567 + 15 + 18 Atlanta...................... 286,648 246.941 234,500 + 16 + 22 Augusta................... 25,469 21,637 19,575 + 18 + 30 Brunswick................. 3,174 2,893 3,047 + 10 + 4 Columbus................. 24,417 22.337 16,579 + 9 + 47 Elberton................... 1,345 1,233 1,143 + 9 + 18 Macon...................... 26,530 25,478 16,601 + 4 + 60 Newnan................... 2,601 1,974 1,968 + 32 + 32 Savannah.................. 35,832 30,364 29,906 + 18 + 20 Valdosta................... 4,312 4,020 4,378 + 7 — 2 LOUISIANA New Orelans.............. 270,115 219,188 245,215 + 23 + 10 MISSISSIPPI Hattiesburg............... 11,209 10,499 5,386 + 7 +108 Jackson..................... 31,923 30,765 31,432 + 4 +2 Meridian................... 15,385 13,59612,377 + 13 + 24 7,877 7,293 7,948 + 8 — 1 Vicksburg.................. T E fM B S S E E Chattanooga.............. 56,267 46,964 44,449 + 20 Knozvill*... ............ 37,483 33,581 32,276 + 12 Nashville................... 104,371 87,917 86,948 + 19 SIXTH DISTBICT ........ 1.415,979 1,214,9351,170,073 + 17 26 Qttes.... UNITED STATES 274 Ciltos.. . . ............ 44,558,000 35,783.000 37,769,000 + 25 + 27 + 16 + 20 h e ld in th e p o c k e t o r in th e s tro n g - b o x o f s o m e p e r s o n , b u s i n e ss* c o m m e r c ia l b a n k , o r o t h e r in s t it u t io n . I f th e c o m m u n ity b e lie v e s t h a t t h e v o lu m e o f c a s h th e e x c e s s iv e p o r t io n b a n k s , h a v in g in m ay be it is h o ld in g is d e p o s ite d in e x c e s s iv e , b a n k s, and th e c o n s e q u e n c e m o re c a s h th a n t h e y c o n s id e r n e c e s s a ry , m a y e x c h a n g e th e e x c e s s f o r r e s e r v e d e p o s its a t th e F e d e r a l R e s e r v e B a n k s ,1 C o n v e r s e ly , w h e n th e p u b lic d e s ir e s a d d it io n a l c a s h , i t d e p o s its in th e f o r m m ay o b t a in m o re by w it h d r a w in g o f c u r r e n c y , a n d th e b a n k s , w h o s e c a s h h o ld in g s w i l l th e r e b y b e d e p le te d , m a y r e p le n is h t h e ir s to c k b y c a llin g u p o n th e F e d e r a l R e s e r v e B a n k s , e it h e r d ir e c t ly , a s in th e c a s e o f m e m b e r b a n k s , o r in d ir e c t ly in th e c a s e o f n o n - m e m b e rs , to d e p o s it s . T h e p r o v id e c u rre n c y la r g e v o lu m e in exch an g e o f c u rre n c y f o r re s e rv e p r e s e n t ly in c ir c u la t io n th u s re p r e s e n t s th e d e s ir e s o f th e h o ld e r s o f c u r r e n c y , n o t o f th e c r e a t o r s o f c u r r e n c y . It is in t h is c o n n e c tio n h a s b e e n a b le to t h a t th e F e d e r a l R e s e r v e S y s te m m a k e o n e o f it s n o t a b le c o n t r ib u t io n s b a n k in g s t a b ilit y . U n d e r th e N a t io n a l B a n k in g S y s te m to a s it e x is t e d b e fo r e 1 9 1 3 th e v o lu m e o f c a s h a v a ila b le to th e b a n k s w a s r ig id ly lim it e d b y th e a m o u n t o f T r e a s u r y c u r r e n c y o u t s ta n d in g a n d th e s u p p ly o f c ir c u la t io n - p r iv ile g e b o n d s a g a in s t w h ic h of N a t io n a l B a n k th e r e a d ily F e d e ra l n o te s m ig h t b e is s u e d . E s t a b lis h m e n t R e s e rv e a v a ila b le in S y s te m m ad e a d d it io n a l c u rre n c y e x c h a n g e f o r r e s e r v e d e p o s it s , th ro u g h th e d is c o u n t o f e lig ib le p a p e r , th ro u g h d ir e c t b o r r o w in g , a n d th ro u g h o p e n m a r k e t o p e r a t io n s u n d e rta k e n a t th e in it ia t iv e o f th e S y s t e m . E a s ie s t o f th e s e m e th o d s i s , o f c o u r s e , th e e x c h a n g e o f e x is t in g r e s e r v e d e p o s its f o r c u r r e n c y , a n d s in c e th e b a n k s a t p r e s e n t g e n e r a lly p o s s e s s la r g e e x c e s s r e s e r v e s , th e y h a v e b e e n e a s ily a b le to p a y o u t th e c a s h f o r w h ic h th e y h a v e b e e n c a lle d upon w it h o u t in a n y w a y r e s t r ic t in g t h e ir le n d in g a n d in v e s t in g a c t iv it ie s . \ Fo r c o n v e n ie n c e in d is c u s s io n , th e h o ld e r s m a y b e c la s s if ie d in t o t h r e e g r o u p s : ( 1 ) (2 ) o f c u rre n c y th e g e n e r a l p u b lic , th e c o m m e r c ia l b a n k s , a n d ( 3 ) f o r e ig n in d iv id u a ls , b u s i n e s s e s , o r b a n k a . S in c e , t h e n , a l l c u r r e n c y in c ir c u la t io n lie s in th e p o s s e s s io n o f o n e o f th e s e g r o u p s , w h ic h b e tw e e n th e m h o ld to th e c u r r e n c y d o s o , th e b e c a u s e it is g ro w th in in t h e ir c ir c u la t io n o p in io n m ay be d e s ir a b le e x p la in e d by p o in t in g o u t th e r e a s o n s t h a t h a v e le d e a c h g r o u p to d e s ir e a d d it io n a l c u r r e n c y . (1 ) T h r o u g h o u t th e 1 9 2 0 ’ s th e p u b lic a t la r g e e x h ib it e d a g r o w in g p r e fe r e n c e f o r d e p o s it m o n e y r e la t iv e to c u r r e n c y ; a c o n t in u o u s ly la r g e r p r o p o r t io n o f b u s in e s s t r a n s a c t io n s w a s m a d e b y c h e c k , a n d s u c h id le b a la n c e s a s e x is t e d w e re h e ld m o re a n d m o re c o m p le t e ly in th e f o r m d e p o s it s . A t th e o p e n in g o f th e o f tim e o r d e m a n d 1 9 3 0 ’s , h o w e v e r , t h is t re n d w a s s h a r p ly r e v e r s e d ; id le b a la n c e s g re w a s a l l e le m e n ts o f th e p u b lic s o u g h t to o b t a in liq u id b a la n c e s , a n d a s , th ro u g h f e a r o f b a n k f a ilu r e s , m o re a n d m o re o f th e s e id le b a la n c e s + 21 w e re w it h d r a w n f r o m th e b a n k s to b e h e ld in c u r r e n c y . I t h a s + 18 a b s o rb e d a b o u t $ 1 .8 BBTJUL TRADE— MABCH1941 (CitiMfor which 10 tedraMin conpiUd) Sales for March compared with: Fob. 1941 Mar. 1940 Feb. 1941 Mar. 1940 +25 + 7 Baton Rouge— +17 — 9 Knoxville........ Chattanooga.... + 48 +6 Macon............. +33 — 1 Jackson......... +34 +5 Montgomery--+33 — 3 Jacksonville.— +25 +17 Tampa............ +27 +15 to u n d e r s t a n d . C u r r e n c y t h a t is in c ir c u la t io n i s a t a l l tim e s been e s tim a te d c ir c u la t io n th a t in F e b ru a ry 1933 c u rre n c y b ill io n , o r a lm o s t 3 0 h o a r d in g p e r c e n t o f th e o f th a t d a te . S in c e th e n th e c ir c u la t io n h a s c o n tin u e d to inqretse, b u t , ‘N on-m em ber b a n k s w o u ld ty p ic a lly d e p o sit e xc e ss c u rre n c y w ith a m em ber co rre sp o n d e n t, an d th e e x c e ss c u rre n c y w o u ld th u s fin d it s w a y in d ire c tly to th e F e d e ra l R e se rv e B a n k s . M o n t h ly R e v ie w 21 o f t h e F e d e r a l R e s e r v e B a n k o f A t la n t a f o r A p r i l 1 9 4 1 h a n k in g d if fic u lt ie s h a v in g b e e n s tra ig h te n e d o u t a n d d e p o s it in s u r a n c e h a v in g b e e n e s t a b lis h e d , th e re a s o n s f o r th e c o n tin u e d in c r e a s e a r e q u ite d if fe r e n t . F o llo w in g 1 9 3 3 th e v o lu m e o f b u s in e s s a c t iv it y h a s b e e n g ro w in g a n d a d d it io n a l c u r r e n c y h a s t h e r e fo r e b e e n n e e d e d f o r b u s in e s s t r a n s a c t io n s , b u t th e c ir c u la t io n h a s b e e n f a r la r g e r th a n th a t n e e d e d to s u p p o rt in th e 1 9 2 0 ’ s c o m p a ra b le is a p p a re n t t h a t th e p u b lic h a s c h a n g e d — h o w le v e ls o f b u s in e s s a c t iv it y , a n d it p e r m a n e n tly re m a in s to b e s e e n — th e p r o p o r t io n o f it s liq u id b a la n c e s th a t it w is h e s to k e e p in th e fo r m o f c u r r e n c y , a s w e ll a s in c r e a s in g it s d e m a n d f o r a l l ty p e s o f liq u id b a la n c e s . C le a r ly , th e p u b lic ’ s d e c is io n to h o ld r a t h e r th a n a n o th e r d e p e n d s u p o n (a ) o n e fo r m o f m oney th e r e la t iv e c o s ts a n d ( b ) th e r e la t iv e c o n v e n ie n c e s in v o lv e d in e it h e r c a s e . E q u a lly Adjusted Mar. Feb. Mar. 1941 1941 1940 RETAIL SALES* (1935-1939 Av. = 100) DISTRICT (47 Firms)................... .125 127 120 Birmingham................................ NewOrleans.............................. RETAIL STOCKS 77 DISTRICT (21 Firms)................... . 83 83 Atlanta...................................... . 162 160 141 Birmingham................................ . 76 76 72 Nashville.................................. . 60 57 60 New Orleans.............................. . 71 67 66 WHOLESALE SALES TOTAL...................................... Dry Goods................................. c le a r ly , d u r in g th e p a s t d e c a d e th e p u b lic h a s b e e n e n c o u ra g e d to h o ld c u r r e n c y b y a d e c lin e in th e r e la t iv e c o s t o f h o ld in g th a t m e d iu m o n th e o n e h a n d a n d b y a n in c r e a s e in it s r e la t iv e c o n v e n ie n c e o n th e o th e r h a n d . (a ) The r e la t iv e co st o f c u rre n c y a s a p a y m e n t m e d iu m h a s b e e n re d u c e d b y th e g e n e r a l e s ta b lis h m e n t a n d in c r e a s e o f b a n k s e r v ic e c h a r g e s , a n d b y th e lo w in t e r e s t r e t u r n s p a y a b le o n tim e d e p o s its , to g e th e r w it h th e a b o lit io n o f in t e r e s t p a y m e n ts o n d e m a n d d e p o s its . S e r v ic e c h a rg e s h a v e d e v e lo p e d r a p id ly in th e p a s t d e c a d e , a n d th ro u g h p r o g r e s s iv e a d o p tio n b y m o re a n d m o re b a n k s , a n d p r o g r e s s iv e in c r e a s e s o f r a t e s , h a v e m a d e th e h o ld in g o i d e m a n d d e p o s its c o n t in u o u s ly m o re e x p e n s iv e , a n d c o n v e r s e ly th e h o ld in g m o re a t t r a c t iv e . I n 1 9 3 3 r e c e ip t s fr o m o f ca sh c o n t in u o u s ly s e r v ic e c h a rg e s o f a l l m e m b e r b a n k s a m o u n te d to $ 2 0 .6 m illio n , o r .0 0 1 7 p e r c e n t o f a l l d e m a n d d e p o s its o f in d iv id u a ls a n d c o r p o r a t io n s . B y 1939 r e c e ip t s had r is e n d e s p ite th e d o u b lin g to $ 5 4 .4 m illio n , o f d e p o s its d u r in g w h ic h th e in t e r v a l, r e p r e s e n te d .0 0 2 4 p e r c e n t o f s u c h d e m a n d d e p o s its . I n p a r is o n it s h o u ld , o f c h a rg e s a re d e p o s its in p o r tio n c o lle c t e d d o lla r c o u rs e , be c h ie f ly fr o m a m o u n ts o f th e t o t a l. T h e re m e m b e re d s m a ll a cco u n t fo r c o s t to a m o u n t, a t h is c o m th a t d e p o s it s , v e ry s e r v ic e w h ic h s m a ll p ro th e d e p o s ito rs a ffe c te d t h e r e fo r e , s e v e r a l tim e s a s g re a t a s w o u ld b e s u g g e s te d is , by th e p e rc e n ta g e s q u o te d . ( b ) S im ila r ly th e r e la t iv e c o n v e n ie n c e o f h o ld in g c a s h h a s b e e n in c r e a s e d b y a n u m b e r o f f a c t o r s : b y th e c u r t a ilm e n t o f b a n k f a c ilit ie s in so m e c o m m u n itie s in th e r e f u s a l o f so m e b a n k s to th e e a r ly a c c e p t la r g e 1 9 3 0 ’s , b y s a v in g s d e p o s its , b y th e g ro w th o f c o in m a c h in e v e n d in g , a n d m o s t o f a l l , b y th e in c r e a s e s in c e 1 9 3 3 o f th e in c o m e s o f th o s e — r e lie f r e c i p ie n t s and w ag e e a rn e rs — w h o t y p ic a lly h o ld ca sh ra th e r th a n d e p o s its . (2 ) B a n k s , a s w e ll a s th e g e n e ra l p u b lic m u s t d e te rm in e CONTRACTS AWARDED DISTRICT.................................. Residential................................. Others...................................... Alabama.................................... Florida..................................... Georgia.................................... Louisiana.................................. Mississippi................................. Tennessee................................. BUILDING PERMITS 20 Cities................................... Atlanta..................................... Birmingham............................... Jacksonville............................... Nashville.................................. New Orleans............................. MG IRON PRODUCTION* COAL PRODUCTION (1935-1939 Av. ==100) TWO STATES........................... . 146 134 Tennessee................................. COTTON CONSUMPTION* THREE STATES.......................... Alabama................................... Tennessee................................. EMPLOYMENT (1932 Av. = 100) SIX STATES.............................. Alabama................................... Florida..................................... Georgia................................. Louisiana.................................. Mississippi............................... Tennessee PAYROLLS (1932 Av. = 100) SIX STATES.............................. Alabama................................... Florida..................................... Louisiana.................................. Mississippi............................... Tennessee ELECTRIC POWER PRODUCTION* SIX STATES.............................. Alabama....................... ............ Florida..................................... Georgia.................................... Louisiana.................................. Mississippi............................... Tennessee................................. 117 Unadjusted Mar. Feb. Mar. 1941 1941 1940 125 110 123 130 120 126 134 104 127 122 101 1IB 109 100 112 86 165 78 61 74 81 154 73 57 67 80 144 74 58 68 72 64 54 132 125 66 56 49 121 118 69 56 58 103 134 77 83 73 69 62 54 122 90 109 99 88 107 62 78 75 271 104 84 69 80 62 41 63 88 56 176 89 54 28 29 90 14 26 57 24 24 112 109 27 60 29 28 80 148 33 136 143 115 160 163 152 156 158 146 126 133 111 235 279 221 188 238 300 215 205 173 202 162 15b 146 159 124 162 130 116 140 146 157 128 160 130 116 137 136 140 122 148 121 112 132 221 312 123 247 167 160 220 Feb. 1941 486 702 710 254 636 118 338 217 307 125 240 164 156 214 Jan. 1941 467r 626 642 271r 646r 74r 359 184 232 111 204 145 150 170 Feb. 194U 397 535 610 219 626 71 260 Statistics (000 Omitted) Mar. Feb. Mar. Year to Date COMMERCIAL FAILURES 1941 1941 1940 1941 1940 a n d in t h e ir c a s e , to o , th e b a la n c e h a s r e s u lt e d in s t e a d ily Number(Actual, not thousands).. 44 40 55 124 177 la r g e r c u r r e n c y h o ld in g s . T h e v a u lt c a s h o f m e m b e r b a n k s , Liabilities.............................. $ 439 $ 331 $ 680 $ 1,073 $ 1,786 p r e s e n t ly a b o u t $ 1 b illio n , h a s m o re th a n d o u b le d s in c e 1 9 3 3 . Feb. Jan. Feb. Year to Date FARM INCOME** 1941 1941 1940 1941 1940 (a ) T h e c o s t to m o s t b a n k s o f h o ld in g v a u lt c a s h h a s b e e n SIX STATES........................... 54,257 64,700 51,381 118,957 102,556 re d u c e d to z e ro th ro u g h th e a c c u m u la tio n o f u n p re c e d e n te d Alabama............................... 5,402 5,918 8,651 11,320 14,332 Florida.................................. 12,314 13,996 8,327 26,310 19,349 e x c e s s re s e r v e s a n d th ro u g h th e a b o lit io n o f in t e r e s t p a y m e n ts Georgia................................. 9,543 8,590 6,823 18,133 12,679 Louisiana.............................. 6,533 9,201 6,552 15,734 13,187 o n in t e r - b a n k d e p o s it s . M o re th a n e n o u g h r e s e r v e fu n d s to Mississippi............................. 9,430 9,398 10,980 18,828 20,829 Tennessee.............................. 1 1 ,0 3 5 1 7 ,597 10,048 28,632 22,180 m e e t th e r e q u ire m e n t s o f la w a n d r e g u la t io n a r e a v a ila b le to th e b a n k s , a n d s in c e n e it h e r d e p o s its a t th e R e s e r v e B a n k s ‘Indexes of retail sales, electric power and pigiron production, and of cotton consumption are on a daily average basis. n o r a t c o rr e s p o n d e n t b a n k s y ie ld a n in t e r e s t r e t u r n , b a n k s **Includes Government benefit payments, C o n tin u e d on P age 23 r = Revised. b y a b a la n c e o f ( a ) tio n o f t h e ir liq u id c o s ts a n d (b ) c o n v e n ie n c e , th e p r o p o r a s s e ts t h a t th e y w il l h o ld a s v a u lt c a s h , 22 M o n t h l y R e v ie w o f t h e F e d e r a l R e s e r v e B a n k o f A t l a n t a f o r A p r i l 19*11 N a tio n a l S u m m ary o f B u sin e ss INDUSTRIAL PRODUCTION Prepared by the Board oi Governors oi tbe Federal Reserve System Industrial activity increased further in March but declined somewhat in the first half of April owing to temporary reductions in output of bituminous coal and automobiles. Wholesale prices of many commodities advanced considerably and the Government took steps to limit price advances of some additional industrial materials. P r o d u c tio n Volume of industrial output continued to increase in March and the Board’s seasonally adjusted index rose from 141 to 143 per cent of the 1935-39 average. Activity increased further in most durable goods industries, particularly in those producing machinery, aircraft, ships, and armament. Steel production increased to about 100 per cent of rated capacity. Automobile production, which usually increases considerably in March, showed little change from the high rate reached in February. In the first half of April output was reduced considerably owing to a shutdown at plants of the Ford Motor Company during an industrial dispute which was settled about the middle of the month. Retail sales of new and used cars advanced to new peak levels in March and dealers’ stocks at the beginning of April amounted to about a month’s supply at the current rate of sales. Output of lumber, which had been sustained at unusually high levels during the winter months, rose less than seasonally. Activity in the textile and shoe industries increased further in March. Cotton consumption rose to a record level of 854,000 bales and there was also an increase in rayon deliveries. At wool textile mills activity was sustained at the peak rate reached in February, not showing the usual large seasonal decline, and in the chemical and rubber industries further advances were reported. Bituminous coal production rose considerably, while output of crude petroleum was maintained in March at about the rate that had prevailed in the four preceding months. In the first half of April coal production declined sharply, however, as most mines were closed pending conclusion of contract negotiations between mine operators and the miners’ union. Production of nonferrous metals continued in large volume in March and deliveries of refined copper showed a sharp rise as domestic production was supplemented by supplies received from South America. Construction contract awards rose sharply in March and were larger than in any month since the middle of 1930, according to the F. W. Dodge Corporation data. The rise was chiefly in awards for publicly-financed work, which had been reduced considerably in January and February, and in private nonresidential projects, particularly factory construction. Awards for private residential building, which had been unusually large during the winter months, showed less than the customary seasonal rise in March. Federal Reserve index oi physical volume oi production, adjusted ior seasonal variation. 1935-1939 average = 100. By months, lanuary 1935 to March 1941. DEPARTMENT STORE SALES AND STOCKS Federal Reserve indexes oi value oi sales and stocks, adjusted ior seasonal variation, 1923-1925 average = 100. By months, lanuary 1935 to March 1941. WHOLESALE PRICES D is tr ib u tio n In March distribution of commodities to consumers was sustained at the high level reached in February. Sales at mail-order houses and department stores increased seasonally and variety store sales showed more than the usual seasonal rise. Freight-car loadings increased by about the usual seasonal amount. Loadings of coal and grain rose considerably, while shipments of miscellaneous freight, which in previous months had risen steadily, on a seasonally adjusted basis, showed a smaller increase than is usual at this time of year. C o m m o d ity P r ic e s Prices of basic commodities continued to advance sharply from the middle of March to the middle of April. There were substantial increases in prices of domestic foodstuffs and further advances in burlap, cotton, rubber, and lead. Increases were also reported in wholesale prices of a number of manufactured products and the general index of the Bureau of Labor Statistics rose two points to 83 per cent of the 1926 average. Informal action was taken by the Government to discourage price increases of some additional industrial materials and maximum price schedules were established for steel, bituminous coal, secondary and scrap aluminum and zinc, and iron and steel scrap. Sharp reductions in prices of some kinds of nonferrous metal scrap resulted. Announce ment of an expanded Federal purchase program for hog, dairy, and poultry products was followed by price increases for these and related products. Bureau oi Labor Statistics' indexes, 1926 — 100. "Other" includes commodities other than iarm products and food. By weeks, January 5, 1935, to April 12, 1941. MEMBER BANKS IN IOI LEADING CITIES B a n k C r e d it Total loans and investments at reporting member banks in 101 cities increased during March and the first two weeks of April. Commercial loans continued to rise substantially, and holdings of United States Government securities increased further, reflecting purchases of new Treasury offerings. U n ite d S ta te s G o v e r n m e n t S e c u r ity P r ic e s Prices of United States Government securities declined irregularly from March 15 to April 9 but subsequently rose slightly. The 1960-65 bonds showed a net loss of about % of 1 point on April 15, following a rise of about 3Vi points in the previous month. The yield on this issue on April 15 was 2.14 per cent, compared with 2.03 per cent at the all-time peak in prices on December 10, and 2.30 per cent at the recent low in prices on February 15. Wednesday figures. January 3, 1935, to April 9, 1941. Commercial loans, which include industrial and agricul tural loans, represent prior to May 19. 1937, so-called "Other Loans" as then reported.' M o n t h l y R e v ie w o f t h e f e d e r a l R e s e r v e B a n k o f A t l a n t a f o r A p r i l 1 H 1 23 D i s t r ic t S u m m a r y o f B u s in e s s C o n d it io n s C ontinued, from, P age 19 M a r c h , f o llo w in g a th re e - m o n th s d e c lin e . I n M a r c h , h o w e v e r, th e y w e re 3 5 p e r c e n t le s s th a n a y e a r a g o . I n th e f ir s t q u a r t e r o f 1 9 4 1 th e n u m b e r o f f a ilu r e s in b y 3 0 p e r c e n t th a n in th e D is t r ic t w a s s m a lle r th e f ir s t t h re e m o n th s o f 1 9 4 0 , a n d lia b ilit ie s w e re le s s b y 4 0 p e r c e n t. F i r s t q u a r t e r l i f e in s u r a n c e s a le s in th e D is t r ic t w e re g r e a te r th a n a y e a r a g o b y 1 1 p e r c e n t, a n d in th e c o u n t r y b y 4 p e r c e n t. C o n s t r u c t io n D is t r ic t w e re c o n tr a c ts dow n 22 a w a rd e d per in M a rc h c e n t in v a lu e a lth o u g h 1 2 p e r c e n t g r e a te r th a n in d e n t ia l 32 a w a rd s d e c lin e d p e r c e n t fr o m 5 per M a rc h cen t in th e fr o m S ix t h F e b ru a ry , la s t y e a r . R e s i and o th e r c o n tr a c ts F e b r u a r y . F o r th e f ir s t q u a r t e r o f 1 9 4 1 , h o w e v e r, t o t a l a w a r d s w e re 1 9 p e r c e n t g r e a t e r th a n in p a r t o f la s t y e a r . T h is f ir s t - q u a r t e r in c r e a s e T h e R is in g T r e n d o f C u r r e n c y C ir c u la t io n C o n tin u ed fro m P age 21 th a t o f 19 p e r cen t f o r th e D is t r ic t c o m p a re s w it h a g a in o f 5 8 p e r c e n t f o r th e h ave 37 th e R e s e r v e B a n k s . E a s te rn year S ta te s , b u t 1940 it s h o u ld th e D is t r ic t g a in c o m p a re d w it h be r e c a lle d th a t fo r o ve r 1939 w as 51 th e B u ild in g p e r m it s in th e D is t r ic t d e c lin e d in s o m e w h a t le s s th a n a y e a r a g o , b u t th e M a r c h a n d w e re f ir s t - q u a r t e r to t a l n e w h ig h le v e ls s u c c e s s iv e ly in th e D is t r ic t , w h ic h re a c h e d M a rc h , b u t w a s 3 6 p e r F ro m to re tu rn e xce ss c u rre n c y h o ld in g s to th e s id e o f c o n v e n ie n c e , b a n k s h a v e h a d re a s o n c ir c u la t io n a m o n g s t th e p u b lic — p a r t ic u la r ly th a t g ro w th a t t r ib u t a b le to in c r e a s in g b u s in e s s a c t iv it y , in c r e a s in g p a y r o lls , in c r e a s in g r e t a il s a le s — h a s in c r e a s e d th e v a u lt ca sh in v e n t o r y n e c e s s a ry to f a c ilit a t e th e b a n k s ’ b u s in e s s . (3 ) O c to b e r, N o v e m b e r, J a n u a r y , a n d F e b r u a r y , d e c lin e d 2 p e r c e n t in in c e n t iv e to in c r e a s e t h e ir h o ld in g s o f v a u lt c a s h . T h e g ro w th o f c a s h and is s lig h t ly a b o v e t h a t f o r th e f ir s t t h re e m o n th s o f 1 9 4 0 . T h e r a t e o f t e x t ile a c t iv it y in (b ) p e r cen t as a n in c r e a s e o f 1 3 p e r c e n t f o r th e c o u n t r y . li t t l e F o r e ig n c o n s id e r a b le in d iv id u a ls , b u s in e s s e s , a n d b a n k s a ls o q u a n t it ie s o f A m e r ic a n c u r r e n c y , b o th h o ld a b ro a d c e n t a b o v e t h a t f o r M a r c h la s t y e a r . I n a c t u a l b a le s o f c o tto n a n d in d o m e s tic s a fe d e p o s it b o x e s . T h e ir h o ld in g s , h o w e v e r, c o n s u m e d , h o w e v e r, b y m ills in A la b a m a , G e o r g ia , a n d T e n c a n n o t b e e a s ily d e te rm in e d . T h e c o m p ila t io n s o f n e t c u r r e n c y n e sse e , a n e w M a rc h . In h ig h le v e l, a t 2 8 9 ,2 3 2 b a le s , w a s re a c h e d in th e c u r r e n t c o tto n s e a s o n , A u g u s t th ro u g h M a r c h , c o n s u m p tio n h a s b e e n 1 4 p e r c e n t g r e a t e r th a n in s h ip m e n ts in d ic a t e to th a t th e B irm in g h a m - G a d s d e n c e r t a in w e re N ew Y o rk in c r e a s in g t h e ir A m e r ic a n c u r r e n c y a b ro a d m o s t r a p id ly a re a s e n te d 1 9 3 7 . S in c e in fr o m th a t p a rt o f la s t s e a s o n . S t e e l m ill a c t iv it y E u ro p e fo r e ig n e r s has a la t e re tu rn in C it y banks h o ld in g s 1 9 3 8 th e n e t m o v e m e n t h a s la r g e ly o f c u rre n c y to t h is of 1 9 3 3 , 1 9 3 4 , and c o u n try . T h e re p re e x te n t to p e r c e n t o f c a p a c it y w h ic h f o r e ig n h o ld in g s o f c u r r e n c y c a n b e m e a s u re d is a d m it in M a r c h a n d th e f ir s t t h re e w e e k s o f A p r i l, a n d in th e c o u n t r y t e d ly in a d e q u a te , b u t th e t o t a l o f s u c h h o ld in g s , m e a s u ra b le b e e n re p o rte d b y T h e Ir o n A ge at 95 in a n d n o n - m e a s u ra b le , is g e n e r a lly b e lie v e d to b e q u it e la r g e . A la b a m a a c t u a lly in c r e a s e d in M a r c h to a t o t a l th a t h a d b e e n ► M u c h th e s a m e ty p e o f u n tr a c e a b le t r a n s a c t io n t h a t p r e v e n ts e x c e e d e d o n ly b y t h a t f o r D e c e m b e r 1 9 4 0 , b u t th e d a ily r a t e a d e q u a te m e a s u re m e n t o f th e c ir c u la t io n o f o u tp u t w a s s lig h t ly re n c y it h a s b e e n a t a b o u t 1 0 0 m o n th of M a rc h la s t y e a r . In c u r t a ile d dow n p e r io d The F e b ru a ry , by an o f tw o lo w e r in a lth o u g h th e se co n d e x p lo s io n fu r n a c e s a n d o f a t h ir d ra te p e r c e n t. P ig M a rc h 18 per w eek th a t c a u se d th e ir o n p r o d u c tio n th a n cen t in th e s h o r t e r ab o ve o f A p r il th e s h u td o w n th a t te m p o r a r y fo r fo r o u tp u t w a s an s h u t in d e fin it e fu rn a c e . o f co al a m o n g s t fo r e ig n e r s m ent o f th e a ls o t o t a l c ir c u la t io n o f A m e r ic a n p r e v e n ts w it h in a d e q u a te any c u r m e a s u re F e d e ra l R e s e rv e D is t r ic t . C u r r e n c y is f r e e to m o v e a c ro s s D is t r ic t lin e s in th e p o c k e ts o f t o u r is t s , in and th ro u g h th e le t t e r s o f c it iz e n s a n d b u s in e s s e s , m a n y o th e r u n a c c o u n ta b le r o u te s . F e d e r a l R e s e rv e B a n k s , h o w e v e r, a r e n o t p e r m itte d to p a y o u t th e n o te s p r o d u c t io n in A la b a m a and T e n n e sse e o f o th e r F e d e r a l R e s e r v e B a n k s ; a n d F e d e r a l R e s e r v e n o te s in c r e a s e d 3 p e r c e n t f u r t h e r in M a r c h , a n d w a s a t th e h ig h e s t th a t le v e l in m o re th a n e le v e n y e a r s . T h e D is t r ic t g a in s o f 3 p e r c ir c u la t io n ce n t o v e r F e b ru a ry p a r is o n o f th e c ir c u la t io n o f t h is B a n k w it h t h a t o f th e o th e r c o m p a re w it h and 27 p e r c e n t o v e r M a rc h in c r e a s e s f o r th e c o u n t r y o f 7 la s t y e a r p e r cen t o ve r F e b ru a ry a n d 3 8 p e r c e n t o v e r M a rc h 1 9 4 0 . E le c t r ic p o w e r p r o d u c t io n in c r o s s D is t r ic t The f a l l in fig u r e s a v a ila b le ) b y 4 p e r c e n t a n d w a s a t a n o th e r a ll- t im e a p e a k . F e b ru a ry m a in e d c u rre n t in th e th u s r a p id ly w ith d r a w n to th e B a n k o f is s u e . A fr o m co m F e d e r a l R e s e r v e B a n k s is t h e r e fo r e p o s s ib le , a n d in th e c h a r t th e s ix s ta te s o f th e D is t r ic t , of a re a b o v e t h is c o m p a ris o n is s h o w n g r a p h ic a lly . o n a d a ily a v e r a g e b a s is , in c r e a s e d f u r t h e r in F e b r u a r y (la t e s t p r o d u c t io n lin e s b y b e in g re t u rn e d D is t r ic t w as m o s t s t r ik in g c o m p a ris o n th e c ir c u la t io n p e r io d in w h ic h r e la t iv e ly in o f t h is B a n k th e c ir c u la t io n s t a b le . T h is t h is c h a r t is d u r in g o f th e d iffe r e n c e th e s h a r p 1937 and t w e lv e is th e 1938, Banks re r e s u lt of C o n tin u e d on P age 24 2 3 p e r c e n t a b o v e t h a t f o r F e b r u a r y la s t y e a r , a s c o m p a re d w it h a g a in o f 1 5 p e r c e n t f o r th e c o u n t r y . C a sh fa rm f u r t h e r in in c o m e in th e s ix s ta te s o f th e D is t r ic t d e c lin e d F e b r u a r y , a s i t n e a r ly a lw a y s h a s , b u t w a s 6 p e r o v e r Ja n u a ry b u t w e re c e n t g re a te r th a n i t w a s in F e b r u a r y la s t y e a r , a n d w a s la r g e r c r o p s , a n d liv e s t o c k a n d th a n in F e b r u a r y o f a n y o th e r re c e n t y e a r w it h th e e x c e p tio n c e n t fr o m o f 1 9 3 7 . I n F e b r u a r y G o v e rn m e n t b e n e fit p a y m e n ts in c re a s e d p a r t o f th e g a in . 27 p e r c e n t le s s y e a r e a r lie r , so th a t F e b r u a r y F e b ru a ry r e c e ip t s th a n fr o m th e y liv e s t o c k p r o d u c t s , w e re u p la s t y e a r . B e tt e r p r ic e s w e re a m a r k e tin g s o f 18 p er a cco u n t fo r a M o n t h l y R e v ie w o f t h e f e d e r a l R e s e r v e B a n k o f A t l a n t a f o r A p r i l 1 9 4 1 24 T h e R is in g to m o v e r o u g h ly in p r o p o r t io n to t h a t o f a l l F e d e r a l R e s e r v e T r e n d o f C u r r e n c y C ir c u la t io n n o te s , b u t a t a C o n tin u e d fro m P a g e 23 t e c h n ic a l n o te p o lic y , a n d n o t th e r e s u lt — n o r in in d ic a t io n — o f a n y u n e q u a l in c id e n c e m e n ts b e tw e e n th e D u r in g th e e a r ly b e g a n to a d o p t th e r a t h e r th a n S ix t h D is t r ic t and it s e lf a n o f e c o n o m ic d e v e lo p th e n a t io n a t la r g e . 1 9 3 0 ’ s in d iv id u a l F e d e r a l R e s e r v e B a n k s p o lic y o f p a y in g F e d e r a l R e s e r v e n o te s in o u t s ilv e r th e $5 c e r t ific a t e s d e n o m in a tio n . d is t in c t ly , lo w e r t h a t th e c ir c u la t io n le v e l. T h is o f lo w e r d e n o m in a tio n r e la t iv e ly m o re im p o r t a n t in m ig h t su g g e st n o te s h a d been t h is D is t r ic t th a n in th e n a t io n , b u t th e e v id e n c e a v a ila b le fr o m a n a n a ly s is o f o u r c ir c u la t io n a t s e v e r a l d a te s d o e s n o t s u p p o r t t h is e x p la n a t io n . I t is p e r h a p s m o re p r o b a b le t h a t th e lo w e r le v e l o f o u r c ir c u la t io n r e la t iv e to t h a t o f th e n a t io n it s o f a l l n o te s o v e r $ 5 c ir c u la t in g in and r e la t iv e ly to th e o th e r Cuba) e ffe c t h a d f o llo w e d th e e s ta b lis h m e n t o f th e H a v a n a A g e n c y a d o p tio n it s e lf a c c o u n ts f o r th e s h a r p f a l l f r o m in b u t in m a t e ly c o m p le te d , th e c ir c u la t io n to o v e r 9 p e r c e n t . beg an 1938. Th e o p p o s ite 1 9 2 3 . B e fo r e 1 9 2 3 t h is B a n k ’ s c ir c u la t io n h a d b e e n a b o u t 5 p e r c e n t o f th e t o t a l c ir c u la t io n f o r F e d e r a l R e s e r v e n o te s in t h is d e n o m in a tio n w a s a p p r o x i o f t h is B a n k a g a in in a n d th e f in a l c lo s B a n k s . O u r d e la y e d a d o p tio n o f th e p o lic y a c c o u n ts f o r th e t h a t p o in t . A g en cy Bank s lig h t r e la t iv e r is e o f o u r c ir c u la t io n u p to M a r c h 1 9 3 7 , a n d t h is D is t r ic t o f s ilv e r c e r t ific a t e s B a n k ’s H a v a n a o f t h is in g A f t e r th e s u b s t it u t io n in o f t h is th o s e s u b s t it u t io n (n o te s o f t h is B a n k h a v in g p r e v io u s ly b e e n th e p r in c ip a l p a r t a b s o lu t e ly n o te s f o r th e a n d , u p o n a d o p tin g i t , in M a r c h 1 9 3 7 , s u c c e e d e d in r e d u c in g b o th 1934 o f Cuban fro m b e g in n in g c ir c u la t io n in r e s u lt s T h is B a n k w a s o n e o f th e la s t to m a k e t h a t c h a n g e in p o lic y , th a t y e a r it ro s e to o f F e d e r a l R e s e r v e n o te s , o ver 6 per c e n t, a n d by 1925