Full text of Federal Reserve Bulletin : April 1916
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FEDERAL RESERVE BULLETIN ISSUED BY THE FEDERAL RESERVE BOARD AT WASHINGTON APRIL, 1916 WASHINGTON GOVERNMENT PRINTING OFFICE 1316 FEDERAL RESERVE BOARD. EX OFFIC1O MEMBERS. WILLIAM G. MCADOO, Secretary of the Treasury, Chairman. JOHN SKELTON WILLIAMS, Comptroller of the Currency. CHARLES S. HAMLIN, Governor. FREDERIC A. DELANO, Vice Governor. PAUL M. WARBURG. W. P. G. HARDING. ADOLPH 0. MILLER. H. PARKER WILLIS, Secretary. (On leave of absence.) SHERMAN ALLEN, Assistant Secretary and Fiscal Agent. M. C. ELLIOTT, Counsel. SUBSCRIPTION PRICE OF BULLETIN, The Federal Reserve Bulletin is distributed without charge to member banks of the system and to the officers and directors of Federal Reserve Banks. In sending the Bulletin to others the Board feels that a subscription should be required. It has accordingly fixed a subscription price of $2 per annum. Single copies will be sold at 20 cents. Foreign postage should be added when it will be required. Remittances should be made to the Federal Reserve Board. Member banks desiring to have the Bulletin supplied to their directors may have it sent to not less than ten names at a subscription price of $1 per year. in TABLE OF CONTENTS. Work of the Board Dividends on stock exempt from tax Appointment of Federal Reserve Agent at Richmond Changes in Federal Reserve Districts Purchase of United States bonds.. Address of Hon. W. P. G. Harding before Birmingham Chamber of Commerce Gold settlement fund Informal rulings of the Federal Reserve Board Additions to and withdrawals from the intra-district clearing system Fiduciary powers granted..,. Law department. Business conditions throughout the twelve Federal Reserve Districts. Distribution of discounts, by sizes and maturities.... .. ... •....-,. Acceptances. Federal Reserve Bank s t a t e m e n t s . . . . . - - , - . , - . . . Gold imports and exports Earnings on investments of Federal Reserve Banks Discount rates in effect IV .....:. 151 153 153 153 156 160 165 168 169 169 170 174 189 194 197 201 203 204 FEDERAL RESERVE BULLETIN VOL. APRIL 1, 1916 2 WORK OF THE BOARD. Definite adjustment of the bond conversion question was finally effected during the early part of the month of March, as a result of consultations between the Board and the authorities of the Treasury Department. On February 28 the Secretary of the Treasury addressed to the Board a letter in which he stated his decision to convert into 3 per cent securities bonds to the amount of $30,000,000 that might be offered him for such conversion b}^ Federal Reserve Banks. In a later communication the Board was informed that the Secretary of the Treasury would issue one-half of the new securities to be provided in exchange for bonds offered for conversion, in the form of 30-year 3 per cent bonds, and one-half in the form of one-year gold notes, in accordance with the provision of the Federal Reserve Act relating to this matter. At the time of the transmission of this letter by the Secretary of the Treasury the total amount of Government bonds purchased by Federal Reserve Banks was approximately $40,000,000. There remained, however, the $25,000,000 allotment which, as will be recalled, is to be distributed on the basis of applications made by member banks holding bonds, such applications beingfiledwith the Treasurer of the United States. The Board has already ruled that the allotment shall be made quarterly, and that under this ruling the first distribution of applications shall be made at the close of March, all applications to be in hand 10 days before the closing of the quarter. The date for final receipt of all applications intended to be considered in the first quarter's allotment was fixed at March 21, the total quarter's allotment No. ,4 being one-fourth of $25,000,000, or $6,250,000. Each quarter's allotment is to be distributed among Federal Reserve Banks pro rata, but the Board has already announced a ruling that any Federal Reserve Bank which has purchased bonds in the open market may consider these an offset against the amount of bonds allotted to it under the pro rata division thus described. It remains to be seen how many such bonds will be offset as the result of applications on the part of Federal Reserve Banks which desire to be relieved of the necessity of taking over bonds from member banks through the process just referred to. The announcement of the Secretary of the Treasury is of special interest in that it establishes a construction of the Federal Reserve Act in harmony with the view of those who have held that the total amount of bonds which the Secretary of the Treasury could convert annually under the law was not limited to $25,000,000. By making the amount $30,000,000 it is recognized that the Secretary of the Treasury can convert any amount that he deems best, and that the establishment of such amount is a matter to be annually determined in accordance with the requirements of the situation. The process of definitely refunding bonds now securing bank circulation into securities without the circulation privilege has thus been actually begun. Details as to bond purchases will be found on page 156. The final adjustment of the Louisiana redistricting petition has been effected during the month of March, the decision to grant the petition in so far as relates to the southwestern part of Louisiana having been reached at the close of February and announced in the March Federal Reserve Bulletin. The decrees in the case have been 151 152 FEDERAL RESERVE BULLETIN. prepared and entered, and the banks affected i thereby notified to undertake the arrangements necessary to the transfer. On February 29 the Board also took action in the Connecticut redistricting petition, voting to transfer from District No. 1 to District No. 2 the county of Fairfield, in the southwestern part of Connecticut, adjoining the State of New York, announcing that action relating to the remainder of the territory covered by the original petition had been suspended for the present and would be deferred pending the attainment of more experience with the system of clearing shortly to be developed. Subsequently representatives of the Connecticut bankers were given another hearing, ai^d it was announced that a definite decision relating to the remainder of the territory would be arrived at on a date not later than June 15,1916. Secretary of the Treasury McAdoo and Hon. Paul M. Warburg, member of the Board, sailed on board the cruiser Tennessee for Buenos Aires on March 8. The party included about 10 persons, the purpose of the journey being that of attendance upon the meeting of the Joint High Commission appointed at the Pan American Financial Conference held in Washington a little less than a year ago. It is expected that the party will return to Washington early in May. HOD. F. A. Delano and Hon. W. P. G. Harding, members of the Board, left Washington on March 9, returning on March 17, for a visit to the Federal Reserve Banks of Cleveland, Kansas City, and St. Louis, Mr. Harding also delivering an address relating to the cotton situation, at Birmingham, Ala., on March 10. The visit to these banks was intended to provide an opportunity for consideration of various local problems relative io the administration of the system, and the adjustment of a number of executive details which have been pending for some time past, and which were thought to require direct attention. During the month the Board has transmitted to Congress the final text of its recom- APRIL 1, 1916. mendations for amendments to the Federal Reserve Act, this text being intended to develop more fully the ideas generally indicated in the Board's annual report, where the proposals for amendments of the Federal Reserve Act weie set forth in general terms. The Board has also reported to various committees of Congress stating its views on various pending bills, among them a measure to amend the Clayton Act in so far as relates to interlocking directorates of national banks. Heads Philippine Bank. Six months7 leave of absence has been granted by the Federal Reserve Board to H. Parker Willis, Secretary of the Board, that he may go to Manila, P. I., to organize and open the new Bank of the Philippines. Mr. Willis has been elected president of the bank, but is expected to return to Washington and his work with the Board at the expiration of the period for which leave has been granted. He left Washington on March 23 and sailed from San Francisco on the 28th. C. C. Robinson, of New York, accompanied Mr. Willis and will assist him. Meeting of Governors, Governors of the 12 Federal Reserve Banks will meet in Washington for consideration with the Federal Reserve Board of matters involving the operation of the banks on Wednesday, April12, 1916. Death of Director Martinez. Notice of the death of Felix Martinez, class C Director of the Federal Reserve Bank of Dallas, was conveyed to the Federal Reserve Board in a telegram dated March 23 from W. F, Ramsey, Federal Reserve Agent at Dallas. Mr. Martinez died at his home in El Paso, Tex., on March 22. APRIL 1,1916. 153 FEDERAL BESERVE BULLETIN. Exchange of Two Per Cent Bonds. Acting upon requests of Federal Reserve Banks, the Federal Reserve Board on March 31 approved applications for the exchange of United States 2 per cent bonds for 3 per cent bonds and notes, amounting to $12,511,050. Nine of the twelve Federal Reserve Banks tendered bonds for conversion. The Federal Reserve Banks of Atlanta, Dallas, and San Francisco made no tenders at this time. If any banks have not asked for the conversion of their full allotment on or before October 1, any residue of the $30,000,000 not then applied for and allotted will be distributed to other banks applying for it. Born in North Carolina in 1852, Mr. Hardy removed with his parents to New York in 1859 but returned to the South in 1875 to enter the banking business at Norfolk, Va. He was appointed cashier of the Norfolk National Bank at its organization and has been president and first vice president of the American Bankers' Association. Federal Reserve Agent at Richmond. Mr. Caldwell Hardy, president of the Norfolk National Bank since 1899, was on March 7 elected by the Federal Reserve Board a class C director of the Federal -Reserve Bank of Richmond and designated as Chairman of the Board and Federal Reserve Agent. Mr. Hardy has accepted and will assume his new duties on April 1. First National, Abbeville First National, Alexandria First National, Jeanerette... T First National, Lafayette...... . Calcasieu National, Lake Charles First National, Lake Charles Peoples National, New Iberia Stafe National, New Iberia. Opelousas National, Opelousas. Planters National, Opelousas. First National, Ville Platte First National Bank of Arcadia Parish, Crowley First National, De Bidder..., First National, Eunice First National, Morgan City New Iberia National, New Iberia Changes in District Lines. There are reprinted below the formal letters of notification and decrees transferring certain banks in southern Louisiana from the Federal Reserve District of Dallas to the Federal Reserve District of Atlanta, and transferring certain banks in F airfield County, Conn., from .Dividends Exempt from Tax. In a letter addressed to Governor Charles S. the Federal Reserve District of Boston to the Hamlin, of the Federal Reserve Board, on Federal Reserve District of New York. FEBRUARY 28, 1916. March 9, the Commissioner of Internal Revenue SIR: I have the honor to inform you that announces a decision on the part of his office that income or dividends on the stock of the Federal Reserve Board on February 25 Federal Reserve Banks is exempt from income adopted the following resolution: "Resolved, That ail of Louisiana north of tax. The letter is as follows: the parishes of Vernon, Rapides, and AvoyReplying to your letter of the 14th ultimo, elles remain in the Eleventh Federal Reserve I have the honor to advise you that upon District, and that the remaining part of the further consideration of the question, this State of Louisiana now in the Eleventh Disoffice has decided that the income derived trict be transferred to the Sixth Federal Refrom, or dividends received on, the stock of serve District, and the banks therein allotted Federal Reserve Banks is exempt from the to the New Orleans Branch of the Federal income tax imposed by section 2, act of Octo- Reserve Bank of Atlanta," ber 3, 1913. Accordingly, the following banks now memIn other words, it is held that the exemp- bers of the Eleventh Federal Reserve District, tion provided for in the Federal Reserve Act and owning stock in the Federal Reserve Bank attaches to and follows the dividends into the of Dallas, will be transferred to the Sixth Fedhands of member banks holding Federal Re- eral Reserve District and will take out a corserve Bank stock. responding amount of stock in the Federal Member banks will therefore be permitted Reserve Bank of Atlanta. These banks will to exclude from their gross income, for the be classed as belonging to the territory aspurpose of the income tax, the dividends re- signed to the New Orleans Branch of the Fedceived on such stock. eral Reserve Bank of Atlanta. Respectfully, Capital. Surplus. Bank. W. W. OSBORN, Commissioner. $50,000 100,000 50,000 100,000 150,000 100,000 100,000 100,000 50,000 50,000 25,000 50,000 25,000 30,000 50,000 50,000 $50,000 200,000 50,000 100,000 50,000 40,000 20,000 30,000 50,000 15,000 12,500 7,000 6,000 50,000 500,000 154 FEDERAL RESERVE BULLETIN. The question of transfers of capital stock from the Federal Reserve Bank, of Dallas to the Federal Reserve Bank of Atlanta will require your attention, and it is suggested that you follow in this matter the same procedure which was laid down by the Board in effecting the transfer of the banks of West Virginia from the Fifth to the Fourth Federal Reserve District some nine months ago. I inclose a copy of the Federal Reserve Bulletin for July, on page 142 of which you will find the details of the process fully set forth. You should note in communicating with member banks that this proceeding is a readjustment under the Board's general power, and not a review on appeal. The Board will be glad to hear from you with respect to the arrangement of any details that may seem to call for further adjustment. Would it be agreeable that the transfer be made effective as of April 1 ? Please notify that the Board may enter the formal order. Respectfully, H. PARKER, WILLIS, Secretary. Mr. M. B. WELLBORN, Chairman Board of Directors, Federal Reserve Bank of Atlanta. ORDER AMENDING THE GEOGRAPHICAL LIMITS OF DISTRICTS NOS. 6 AND 11. At a stated meeting of the Federal Reserve Board, duly held at its office in the city of Washington, D . €.,- March 6, 1916. Present: Mr. Hamlin, Governor; Mr. Delano, Vice Governor; Mr. Miller, Mr. Harding, Mr. Warburg, Mr. Williams. In the matter of readjusting the geographical limits of Districts Nos. 6 and 11 in accordance with the power vested in the Federal Reserve Board by section 2 of the Federal Reserve Act. Whereas the Federal Reserve Board is authorized and empowered by section 2 of the Federal Reserve Act to readjust the Federal Reserve Districts; and Whereas upon consideration of (a) the petition of certain banks in Louisiana for the transfer from District No. 11 to District No. 6 of all that part of Louisiana then situate in District No. 11; (b) the printed briefs and exhibits filed by counsel, it appears to the Federal Reserve Board that the convenience and customary APRIL 1, 1916. course of business and the best interests of the Federal Reserve System will be served by a readjustment of the geographical limits of Districts Nos. 6 and 11: Now, therefore, the Federal Reserve Board doth order— (1) That District No. 11 be readjusted and altered so as to include the State of Texas; all that part of New Mexico not included in District No. 10; the counties of Pima, Graham, Greenlee, Cochise, and Santa Cruz, all situate in the State of Arizona; the counties of Marshall, Bryan, Choctaw, Pushmataha, McCurtain, Johnson, Atoka, and Coal, all situate in the State of Oklahoma; and all that part of Louisiana situate north of the northern boundaries of the parishes of Vernon, Rapides, and Avoyelles. (2) That District No. 6 be readjusted and extended so as to include the States of Florida, Georgia, and Alabama; all that part of the State of Tennessee not included in District No. 8; all that part of the State of Mississippi not included in District No. 8; and all that part of the State of Louisiana south of the northern boundaries of the parishes of Vernon, Rapides, and Avoyelles. (3) That the alterations in Districts Nos. 6 and 11 directed in this order become effective April 1, 1916. (4) That the Federal Reserve Banks of Atlanta and Dallas be notified of the changes made in the districts referred to and directed to take such action as may be necessary for the transfer of membership of the banks included in the territory affected. (5) 'That a copy of this order be filed with the Comptroller of the Currency in order that the certificate of the Reserve Bank Organization Committee may be properly amended. C. S. HAMLIN, Governor. Attest: H. PARKER WILLIS, Secretary. MARCH 1,1916. SIR : I have the honor to inform you that the Federal Reserve Board on February 29 adopted a resolution transferring the banks situated in Fairfield County, Conn.,a from District No. 1 to District No. 2. Accordingly the following banks, now members of the Firsfc Federal Reserve District, and owning stock in the* Federal Reserve Bank of Boston, will be transferred to the Second Federal Reserve District, and will take out a APRIL 1, 1916. FEDERAL RESERVE BULLETIN. 155 corresponding amount of stock in the Federal with the power vested in the Federal Reserve Board by section, 2 of the Federal Reserve Act. Reserve Bank of New York: Wliereas the Federal Reserve Board is auBethel National Bank, Bethel, Conn. thorized and empowered by section 2 of the First Bridgeport National Bank, Bridgeport, Conn, Federal Reserve Act to readjust the Federal City National Bank, Bridgeport, Conn. Connecticut National Bank, Bridgeport, Conn. reserve districts; and Danbury National Bank, Danbury, Conn. Whereas, upon consideration of (a) the petiCity National Bank, Danbury, Conn. tion of certain banks in Connecticut for the Greenwich. National Bank, Greenwich, Conn. transfer from District No. 1 to District No. 2 of First National Bank, New Canaan, Conn. Central National Bank, Norwalk, Conn. all that part of Connecticut east of the ConFairfield County National Bank, Norwalk, Conn. necticut River; (b) the answer of the Federal National Bank of Norwalk, Conn. Reserve Bank of Boston, Mass.; (c) the briefs of First National Bank, Ridgefield, Conn. counsel and the oral arguments heard by the City National Bank, South Norwalk, Conn. First National Bank, Stamford, Conn. Federal Reserve Board; it appears to the FedStamford National Bank, Stamford, Conn. eral Reserve Board that the convenience and The question of transfers of capital stock customary course of business and the best infrom the Federal Reserve Bank of Boston to terests of the Federal Reserve System will be the Federal Reserve Bank of New York will served by a readjustment of the geographical require your attention, and it is suggested that limits of Districts Nos. 1 and 2. Now, therefore, the Federal Reserve Board you follow in this matter the same procedure which was laid down by the Board in effecting doth order— (1) That District No. 1 be readjusted and the transfer of the banks of West Virginia from the Fifth to the Fourth Federal Reserve Dis- altered so as to include the States of Maine, trict some nine months ago. I inclose a copy New Hampshire, Vermont, Massachusetts, of the Federal Reserve Bulletin for July, on Rhode Island, and all of the State of Connectipage 142 of which you will find the details of cut except the county of Fairfield. (2) That District No. 2 be readjusted and the process fully set forth. You should note in communicating with member banks that this extended so as to include the State of New proceeding is a readjustment under the Board's York, the counties of Monmouth, Middlesex, general power, and not a review on appeal. Hunterdon, Somerset, Union, Essex, Passaic, The Board will be glad to hear from you with Hudson, Bergen, Morris, Sussex, and Warren, respect to the arrangement of any details all situate in the State of New Jersey, and the that may seem to call for further adjustment. county of Fairfield, situate in the State of ConWould it be agreeable that the transfer be necticut. (3) That consideration of so much of the petimade effective as of April 1 ? Please notify tion of the Connecticut banks as requests the that the Board may enter its formal order. transfer of that part of Connecticut west of the Respectfully, Connecticut River which is not covered by this H. PARKER WILLIS, Secretary. order be continued without prejudice until the Mr. PIERRE JAY, further order of the Board. Chairman Board of Directors, (4) That the alterations in Districts Nos. 1 Federal Reserve Bank of New York. and 2 directed in this order become effective April 1, 1916. (5) That the Federal Reserve Banks of Boston and New York be notified of the changes ORDER AMENDING THE GEOGRAPHICAL LIMITS made in the districts referred to and directed to take such action as may be necessary for the OF DISTRICTS NOS. 1 AND 2. transfer of membership of the banks included in. At a stated meeting of the Federal Reserve the territory affected. (6) That a copy of this order be filed with the Board, duly held at its office in the city of Comptroller of the Currency in order that the Washington, D. C, March 6, 1916. Present: Mr. Hamlin, Governor* Mr. Delano, certificate of the Reserve Bank Organization Vice Governor; Mr. Miller; Mr. Harding; Mr. Committee may be properly amended. C. S. HAMLIN, Governor. Warburg; Mr. Williams. In the matter of readjusting the geographical 'Attest: H. PARKER WILLIS, Secretary. limits of Districts Nos. 1 and 2 in accordance 32779—16-—2 156 FEDERAL RESERVE BULLETIN. Purchase of United SMes Bonds. Two interesting movements in connection with bonds have culminated with the end of the first quarter of the year. They are the offering and sale to the 12 Federal Reserve Banks of the first one-quarter of the $25,000,000 to be purchased yearly from member banks of the Federal Reserve System and the exchange by the 12 Federal Reserve Banks of 2 per cent bonds for 30-year 3 per cent bonds and 1-year 3 per cent gold notes. Both transactions are undertaken under section 18 of the Federal Reserve Act. In addition there have been purchases by the 12 Federal Reserve Banks in the open market. These purchases, under a ruling of the Federal Reserve Board, are permitted to be taken as an offset against the allotment made to each of the 12 Federal Reserve Banks of offerings made through the Treasurer of the United States. The limit of $9,000,000 which could be deposited under the National Bank Act for national banks to retire circulation and release bonds for the current month was reached on March 16. No further deposits will be received until April 1. This limitation of $9,000,000 a month does not, however, apply to money deposited with the Treasurer for the release of bonds offered by national banks for purchase by Federal Reserve Banks under section 18 of the Federal Reserve Act. Offerings by member banks through the Treasurer of the United States closed on March 21, 10 days prior to the end of the month, statement being made to the Federal Reserve Board as of March 31. The total of applications to sell bonds received by the Treasurer of the United States and reported to the Federal Reserve Board was $16,041,700. The amounts offered in each district and the number of banks making offerings are given below. APRIL 1,1916. Bonds offered. Number of banks. Boston New Y o r k . . . . Philadelphia.. Cleveland. Richmond Atlanta... Chicago St. Louis Minneapolis... Kansas City... Dallas San Francisco. $3,285,000 1,577,500 814,000 1,226,550 180,000 359,900 2,296,500 4,275,250 156,750 505,500 356,250 1,008,500 33 16 8 10 4 8 Total... 16,041,700 141 17 7 15 This letter and resolution adopted by the Federal Reserve Board on Tuesday, March 28, were sent out on that date to each of the member banks of the Federal Reserve System which had offered bonds for sale under section 18 of the Act: SIR: There is inclosed for your information copy of a resolution, adopted by the Federal Reserve Board at its meeting to-day, in connection with the sale of United States bonds offered by member banks of the Federal Reserve System through the Treasurer of the United States under section 18 of the Federal Reserve Act. You will note from the resolution that the Board has determined under the circumstances to make no allotment of bonds for purchase at this time. Very respectfully, C. S. HAMLIN, Governor. Whereas it appears from statement furnished the Board by the office of the Secretary that 11 out of the 12 Federal Reserve Banks have purchased in the open market bonds in excess of the amount which might be allotted to such banks at the end of this quarterly period on a basis of one-fourth of $25,000,000 which the Board had considered alloting at this time; and Whereas the bonds offered for sale through the Treasurer under section 18 of the Federal Reserve Act aggregate more than twenty times the amount which might be allotted on the basis indicated, aiid it will, therefore, be possible on this basis to sell for each member bank less than 5 per cent of the amount offered for sale; and APRIL 1,1916. FEDERAL RESERVE BULLETIN. 157 Subsequently Secretary McAdoo informed the Board that conversions would be made one-half into 3 per cent gold bonds and onehalf into 1-year gold notes. In the closing paragraph of his letter advising of this decision the Secretary said, "Upon further consideration I have concluded that the purposes of the Act and the public interest will be better served if banks are required to take the maximum amount, i. e., 50 per cent, of the new issues in 1-year gold notes and 50 per cent in 3 per cent 30-year bonds.7' On March 8 the Federal Reserve Board sent Resolved, that it is the sense of the Board that no necessity exists for enforcing the require- out the following letter to Federal Reserve ment provided for under section 18 of the Banks stating in each instance the amount of Federal Reserve Act at the end of this quarterly bonds which the bank would be entitled to period ending March 31, 1916, and that it will not at this time require the Federal Reserve convert: Banks to purchase any of those bonds which I am directed by the Federal Reserve Board are offered for sale by member banks through to transmit to you the following information: the Treasurer of the United' States under the The Secretary of the Treasury has notified provisions of section 18. the Federal Reserve Board that he will issue Be it further resolved, that the Secretary be 3 per cent 30-year bonds and 1-year notes in instructed to send a copy of this resolution to exchange for 2 per cent bonds offered for conthe various Federal Reserve Banks and to the version by Federal Reserve Banks to the extent member banks which have offered bonds for of $30,000,000 during the present calendar sale in order that they may be notified of the year. On the basis of capitalization and suraction of the Board in the premises. plus adjusted to April 1, your allotment for the year will amount to . Conversion of 2 Secretary McAdoo, in a communication to per cent bonds may be made as follows: On the Federal Reserve Board on February 28, April 1, not to exceed one-half of your allotstated that he would, under section 18 of the ment; on July 1, not to exceed three-fourths Act, issue in exchange for United States 2 per of your allotment, including the amount converted on April 1; on October 1, balance of cent gold bonds, bearing the circulation privi- your allotment. If any bank fails to apply for lege, against which no circulation was out- its full allotment before October 1, bonds and standing, 1-year gold notes and 3 per cent notes remaining will be distributed on a pro 30-year gold bonds, both without the circula- rata basis among the banks applying therefor. tion privilege, upon assent by the Federal Re- The denominations of bonds are from $100 to $10,000 and of notes from $1,000 to $50,000. serve Banks to the necessary obligation with All exchanges will be made as nearly as possithe Secretary of the Treasury binding them to ble on the basis of one-half 30-year bonds and purchase for gold at maturity the 1-year notes. one-half 1-year notes. Please notify the Board, The limitation upon the issue was $30,000,000 to reach Washington not later than March 20, for the year 1916, and the conversion dates the amount of 2 per cent bonds you will offer the first days of January, April, July, and Octo- for exchange on April 1.. The figures showing the allotment, which ber. These dates correspond with the interest have been adjusted to cover the changes by periods for the 2 per cent Consols of 1930. Unreason of the transfer of banks in Fairfield der this arrangement $15,000,000 may be conCounty, Conn., from the Boston district to the verted on April 1 and $7,500,000 each on the New York district, and the changes from the two following dates. Whereas it appears that the only Federal Reserve Bank which has not purchased in the open market bonds in excess of the amount which might be allotted to it is under contract to purchase a sum very largely in excess of its allotment and has been prevented from consummating such purchase by reason of the fact that more than $9,000,000 in lawful money has been deposited with the Treasurer during the current month to retire circulation by national banks, and the banks under contract to sell are thereby prevented from making delivery: Now, therefore, be it 158 FEDERAL KESERVE BULLETIN. Dallas district in the State of Louisiana to the Atlanta district, based upon capital of Federal Reserve Banks at the close of business on March. 3, were as follows: Banks. Capital. Amount of conversions. Boston New Y o r k . . . . Philadelphia.. Cleveland Riehniond.... Atlanta Chicago St. Louis Minneapolis.. Kansas City.. Dallas........ San Francisco $5,058, 995.00 11,206, 655.00 5,256, 100.00 5,945, 100.00 3,336, 750.00 2,583, 058.00 6,652, 850.00 2,785, 000.00 2,555, 550.00 3,004, 600.00 2,586 308.66 3,946 450.00 $2,763,602 6,121,910 2,871,275 3,247,658 1,822,783 1,411,061 3,634,284 1,521,375 1,396,033 1,641,337 1,412,836 2,155,846 Total... 54/917,416.66 30,000,000 Several Federal Reserve Banks raised the question whether the Treasury< Department would at this time consider applications for the conversion of the 1-year gold notes into 30-year 3 per cent bonds, and in answer to one of these inquiries the Federal Reserve Board sent, on March 13, the following reply: Your letter of March 8, relative to the exchange of 2 per cent bonds for 3 per cent bonds and 1-year gold notes, was referred to the Treasury Department and is to-day returned with the following advice: " I have received your memorandum of March 10 inclosing a letter addressed to the Federal Reserve Board by the governor of the Federal Reserve Bank of Cleveland, in which he asks whether the Secretary of the Treasury has determined that he will not consider applications for the conversion of 1-year gold notes into the 30-year 3 per cent bonds as provided in section 18 of the Federal Reserve Act. In reply I beg to advise you that the Secretary has taken no action in this matter and during his absence nothing will be done in relation thereto." It has been held that the limit of $9,000,000 of deposits to be made by national banks for the retirement of bonds securing circulation in any one month stands irrespective of the allotment made under the requirement of the law for the purchase of $25,000,000 in bonds yearly by Federal Reserve Banks. If an application to sell bonds under section 18 is not granted by the Federal Reserve Board it will APRIL 1,1916. be necessary for the applying bank to file a new application with the Treasurer of the United States that its wish to sell may be considered at the next quarterly period. Notes issued under the conversion privilege will be termed "One-year Treasury notes/ 7 and will be designated " Series of January 1, 1916-17." They are payable one year from the date of issue, with interest at 3 per cent, which is payable on the 1st of January, April, July, and October. These notes are issued in denominations of $1,000, $10,000, and $50,000. The 3 per cent bonds are called " Three per cent conversion bonds," and will be designated as the series of the years of issue and of maturity, the first being "Series of 1916-46." They are payable 30 years from January 1 of the year of issue, bearing interest at 3 per cent, payable at the same quarterly periods as the notes. The bonds are issued in denominations of $100, $1,000, $5,000, and $10,000, both registered and coupon form. The Secretary of the Treasury, upon the request of a Federal Reserve Bank, will open a suspense account with such bank for each loan, in which account will be credited all bonds acquired by the bank and charged all bonds reissued or converted as directed by the Federal Reserve Bank having title thereto. After suspense accounts have been established the Secretary of the Treasury will advise the Federal Reserve Bank of all bonds received for the bank's account and of the disposition of such bonds or any part thereof in accordance with instructions given by the Federal Reserve Bank. A statement of all transactions will be furnished the bank at each dividend period for each loan, and interest on the bank's holdings will be declared on account of the bonds held in suspense. In order to have such suspense account established a Federal Reserve Bank should make application therefor to the Secretary of the Treasury, such application to be in the form of a certified copy of a resolution of the board of directors authorizing the action. There were on March 1 national bank notes outstanding, secured by United States bonds, 159 FEDERAL RESEEVE BULLETIN. APRIL 1,1916. amounting to $711,129,418. This was a de- notes on March 1 are shown in the following table: crease of $7,794,072 since February 1. In addition to the national bank notes outOn deposit standing, secured by United States bonds, deposit Inter- to secure On to secure Federal Kinds of bonds on deposit. est there were on March 1 $51,866,895, secured by national Reserve rate. bank notes. bank notes. lawful money, an increase over February 1 of $4,398,317. The amount of Federal Reserve 2 $5,719,250 $588,926,450 States consols of 1930 bank notes outstanding, secured by United United 3 United States loan of 1908-1918. 18,551,820 4 United States loan of 1925 100,000 27,224,900 States bonds, on March 1 was $2,999,970. 2 United States Panama of 1936 512,500 52.251,440 2 United States Panama of 1 9 3 8 . . . . . . . . . 400,000 28,301,480 The kinds of bonds on deposit to secure Total 6,731,750 715,256,090 Federal Reserve bank notes and national bank Statement of the public debt on February 29, 1916. DEBT BEARING NO INTEREST (PAYABLE ON PRESENTATION). Obligations required to be reissued when redeemed: United States notes Less gold reserve DEBT ON WHICH INTEREST HAS CEASED SINCE MATURITY (PAYABLE ON PRESENTATION). Funded loan of 1891, continued at 2 per cent, called for redemption May 18,1900; interest ceased Aug. 18,1900... Funded loan of 1891, matured Sept. 2,1891 Loan of 1904, matured Feb. 2,1904. Funded loan of 1907, matured July 2,1907 Refunding certificates, matured July 1,1907 Old debt matured at various dates prior to Jan. 1,1861, and other items of debt matured at various dates subsequent to Jan. 1,1861 $346,681,016.00 152,979,023.21 Excess of notes over reserve 193,701,992.79 Obligations that will be retired on presentation: Old demand notes , 53,152.50 National-bank notes assumed by the United States on deposit of lawful money for their retirement... 40,703,950.50 Fractional currency 6,849,059.90 Total • Total 241,308,155.69 •. $4,000.00 22,950.00 13,050.00 535,000.00 12,190.00 901,460.26 1,488,650.26 INTEREST-BEARING DEBT (PAYABLE ON OR AFTER SPECIFIED FUTURE DATES.) Title of loan. Authorizing act. Rate. When issued. When redeemable Interest payable. or payable. Mar. 14,1900 P.ct 2 1900 Loan of 1908-1918... June 13,1898 3 1898 Jan. 14,1875 4 1895-6 2 1906 Redeemable after Aug. 1, 1916; payable Aug. 1, 2 190S 3 1911 Redeemable after Nov. 1, 1918; payable Nov. 1, 1938. Payable June 1, 1961. Consols of 1930 Loan of 1925 Panama Canal loan: Series 1906 June 28,1902, and Dec. 21,1905. Series 1908 Series 1911 Postal s a v i n g s bonds (first to ninth series). Postal s a v i n g s bonds, 1916-1936 (tenth series). do Aug. 5,1909, Feb. 4,1910, and Mar. 2,1911. June 25,1910 June 25,1910...... 19111915 1916 Amount issued. Outstanding Feb. 29,1916. Registered. Payable after Apr. January, April, $646,250,150 $643,389,050 July, and Oc1,1930. tober. Redeemable after February, May, 1198,792,680 47,203,200 August, and Aug. 1, 1908; November. payable Aug. 1, 1918. Payable after Feb. 2162,315,400 101,295,600 do 1,1925. Coupon. Total. $2,861,100 1646,250,150 16,742,260 63,945,460 17,194,300 118,489,900 do..... 54,631,980 54,621,520 10,460 54,631,980 do 30,000,000 29,737,520 262,480 30,000,000 50,000,000 40,921,800 9,078,200 50,000,000 7,307,100 6,528,340 778,760 7,307,100 938,000 855,900 82,100 938,000 1,150,235,290 924,552,930 47,009,660 971,562,590 March, J u n e , September, and December. Redeemable after January a n d July. 1 year from date of issue; payable 20 years from date of issue. Redeemable after do... Jan. 1,1917; payable Jan. 1,1936. Aggregate of interestbearing debt. 1 Of this original amount issued, $132,449,900 have been refunded into the 2 per cent consols of 1930, and $2,396,800 have been purchased for the sinking fund and canceled, and $500 have otherwise been purchased and canceled. 2 Of this original amount issued, $43,825,500 have been purchased for the sinking fund and canceled. GROSS DEBT. Debt bearing no interest Debt on which interest has ceased. Interest-bearing debt $241,308,155.69 1,488,650.26 971,562,590.00 1,214,359,395.95 NET DEBT. Gross debt (opposite) $1,214,359,395.95 Deduct— Balance available to pay maturing obligations (see above), 104,135,180.74 Net debt 1,110,224,215.21 160 "FEDERAL RESERVE BULLETIN. THE PRESENT COTTON SITUATION. Speaking before the Birmingham Chamber of Commerce in Alabama Friday evening, March 10, Hon. W. P. G. Harding, member of the Federal Reserve Board, discussed the present cotton situation in part as follows: During the next six weeks, assuming normal weather conditions, the cotton crop of 1916 will be planted. While the acreage put in cotton will bear a direct relation to the size of the new crop, other factors must be considered in reaching conclusions as to the final outcome. The quality aind amount of fertilizer used, the character of the season, methods of cultivation, the ravages of the boll weevil and other insect damage, will all have an important bearing, so th&t under some conditions it is conceivable that 30,000,000 acres planted in cotton will produce a larger yield than 35,000,000 acres under other conditions. The new crop acreage, however, which will probably be known definitely within the next 60 days, will play an important part in fixing the market value of that portion of the crop of 1915 which remains unsold, for it is likely that not until July will reports of condition of the growing crop become a factor in pric^ control. It will be remembered that during last July there was a decided slump in the cotton market, which brought about an extremely nervous feeling throughout the South. Despite the very vigorous and diligent campaign that had been made in the spring of 1915 for a sharp reduction in cotton acreage, reinforced as it was by tpe severe object lesson of the dangers of overproduction that had been impressed upon cotton growers during the preceding fall and winter, it was found that the area planted in cotton had been reduced by only about 15 per cent. The season up to JaFy had been propitious and there was much talk of a new crop of at least 14,000,000 bales. It was known also that Great Britain intended to declare cotton an absolute contraband, which was regarded as meaning the loss el a market for about two and one-half million bajles which had usually gone to Germany and Austria, and which had to a considerable extent during the season of 1914-15 reached those countries through neutral ports. Farmers and business men throughout the South were aroused, and, without any definite organization, but through the force of public sentiment, a policy of gradual marketing was decided upon. Warehouse facilities had been found to be adequate, and the banking situation was such as to render ample funds available to carry out such a policy. At the same time it became evident that the yield would not be as large as had been anticipated, so that consumers, finding that there was no rush of cotton to the market for sale at forced, prices, began to contract for their wants, and prices advanced rapidly. The new crop, instead of bringing 7 to 8 cents per pound, as had been predicted by many pessimistic persons, found APRIL 1,1916. a ready market up to 12J cents per pound, and cottonseed advanced in a corresponding degree so as, to give producers the equivalent of $20 to $22.50 per bale from sales of seed. The advance attracted speculative interest, and by December some enthusiasts had visions of 15 to 18 cents per pound. Many farmers and merchants who, a few weeks before, would have sold most gladly at 12 cents, caught the infection and decided to hold for the much higher prices which they felt were coming. About this time, however, the export movement began to compare unfavorably with the previous season. Except as to coastwise trade, our ocean freights are carried almost entirely in foreign bottoms. Of these, German vessels are idle, being interned in neutral ports throughout the world, or else blockaded in the waters of the North Sea. This scarcity of shipping has caused a great advance in ocean freight rates, which are from six to ten times the normal, so that rates on cotton from American ports to Liverpool have been ruling as high as $3 per hundred pounds, or $15 per bale, being 3 cents per pound. Even at these abnormal rates, exports of cotton have been restricted, as shipowners, acting probably umder instructions from their Governments, have given preference to cargoes of grain and munitions. Under these conditions stocks abroad have been greatly reduced, and during the month of January there was a time when the stock at Liverpool was sufficient to supply British spindles for less than six weeks, with prices ruling at 18 cents, against 12 cents in New York. There is reason to believe however, that during the past month arrangements have been made to increase the ship room available for cotton, and there has been some increase in the supply at Liverpool, London, and Manchester. The total stocks in Great Britain on March 3 have been estimated to be 1,000,000 bales, against 1,452,000, 1,289,000, and 1,498,000 bales for the same date in 1915, .1914, and 1913, respectively. The depletion of stocks on the Continent is still more marked. The Financial Chronicle estimates the supply of stock at Hamburg, Bremen, and Trieste to be about 1,000 bales at each point, against a total of 384,000 bales on March 1, 1915, 570,000 bales in 1914, and 578,000 bales in 1913; and, including stocks at Havre, Marseilles, Barcelona, and Genoa, it estimates continental stocks on March 3 at 479,000 bales, against 1,083,000 bales in March, 1915, 1,065,000 in 1914, and 1,089,000 in 1913. Authorities place the total visible supply for the world on March 3 at 5,777,448 bales, against 7,607,227, 6,107,140, and 5,491,952 bales in 1915, 1914, and 1913, respectively. In Egypt figures relating to cotton receipts are expressed in cantars, approximating 100 pounds, and exports in bales which weigh about 750 pounds. Reducing the figures to the equivalent of 500 pounds to the bale, receipts of cotton at Alexandria from August 1 to February 9 have been, according to the same authority, 790,300 bales, against 942.500 bales last year and 1,350,000 bales for the same date in 1914. APRIL 1,1916. FEDERAL RESEBVE BULLETIN. A report dated Friday night, March 3, gives the following statement as to the movement of the crop for the week: Total receipts, 107,849 bales, against 156,956 and 142,403 bales for the two weeks immediately preceding. Total receipts since August 1, 1915, 5,402,039, against 8,093,162 for the same period of 1914-15. Decrease since August 1, 1915, 2,691,123 bales. Exports for the week, 142,143 bales, of which 73,9.72 were to Great Britain, 24,125 to France, and 44,046 to the rest of the Continent. Total exports August 1, 1915, to March 3, 1916, to Great Britain, 1,755,493 bales, against 2,487,993 bales for the same period last year; to France, 510,883, against 376,892; to Continent, 1,295,565, against 2,672,188, making a grand total of 3,561,941, against 5,537,073 last year, and 7,296,085 for 1913-14. The export movement therefore is approxL mately 2,000,000 bales behind last year and nearly 3,750,000 bales under 1914. There seems to be no material difference of opinion on the part of various authorities as to stocks of Cotton held abroad or as to the exports, but there is some divergence in the views as to the domestic situation. A well-known cotton authority, who prefers not to be quoted, gives me the following estimate of the supply of cotton in America on July 31,1916, at the close of the current cotton year: Visible supply in United States July 31, 1915. 1, 300,000 Unmarketed on plantations July 31,1915 1, 800,000 Crop 1915-16 (including linters). 12, 250, 000 Total supply this season American consumption. Total exports.. 15, 350,000 7,000,000 6,500,000 Leaving on hand visible and invisible.. and checks his figures as follows: Unmarketed July 31, 1915. Crop 1915-16... Total supply from plantations. In sight to February 26,1916 Unmarketed supply February 26.. Stock United States ports, February 26. Stock interior towns February 26.... Total supply in United States February 26 ... ... United States consumption, s e a s o n . . . . . . . . . 7,000,000 Total takings to February 26 4,684,000 Still to be taken. 2,316,000 Exports, season 6, 500,000 Exports to February 26. 3, 561,922 Still to be exported. 2, 938,078 13, 500,000 1, 850,000 161 I quote as follows from a letter received from him: " I t is reasonably plain that if we export 6,500,000 bales of cotton this year, we shall not have more than about 1,800,000 bales left over in the United States. This includes the cotton at the ports and interior towns as well as the unmarketed supply on the plantations. I do not think it can be considered burdensome with the financial facilities that the Federal Reserve Banks provide, and if the war ends during the present summer, I believe that all the cotton that is leftover and all that America can possibly produce next year will be required to fill up the vacuum created by the blockades and the war." Another view is given in the weekly cotton letter dated March 4 of a well-known brokerage house. From this statement I quote: "The world's visible supply of American cotton is now 1,604,000 bales less than at this date last year and 64,000 less than in 1914, The stocks of American cotton in Liverpool with one exception are the smallest in the past 10 years, and practically the same is true of continental stocks of American cotton. Our cotton markets are absolutely closed to Germany and Austria, which was not the case at this date last year and yet in spite of the extraordinary advance in ocean freight and insurance (the rate to Liverpool is now $15 a bale as compared with about $1 August 1, 1914) we exported the first six months of the season 2,961,000 bales and to date 3,680,000, clearly indicating an export movement for the season of fully 6,000,000 bales. The domestic consumption for the first six months of the season amounted to 3,528,000 bales and it is increasing as the season advances, foreshadowing a total of fully 7,250,000 bales for the year. With a supply of about 14,675,000 bales (made up from the carry over from last year of 2,765,000 bales, the crop estimated by the Government at 11,161,000 and an estimated linter crop of 750,000) and allowing 6,000,000 bales for export a,nd 7,250,000 for domestic consumption, we would close the season with an apparent surplus of 1,425,000 bales." Therp is a difference in the estimates of these two 1,800,000 authorities of 425,000 bales. The first-mentioned estimate 12,250,000 places the carry-over from last year at 3,100,000 bales, while the second puts the amount carried over at 2,765,000 14,050,000 9, 554, 795 bales. The first places the present crop, including linters, at 12,250,000 bales, while the second, accenting the Gov4,495, 205 ernment estimate, figures the crop, including linters, at 1,410, 285 1,102,047 11,911,000 bales. The first estimate puts American consumption at 7,000,000 bales and exports at 6,500,000 bales, or a total of 13,500,000 bales, while the figures given by the 7,007,537 second are 6,000,000 bales for export and 7,250,000 bales American consumption, or a total of 13,250,000 bales. The first authority says further that from the apparent surplus of 1,425,000 which is shown according to his figures "there must be deducted 1,179,000 bales of linters, 429,000 carried over from last year and the linter crop of this year, 750,000, every bale of which will go into the manufacture of explosives. This cuts the spinner's supply down to about 13,500,000 bales, leaving an apparent surplus at the close of the season of about 250,000 bales." 5,254,078 I am informed that the Census Bureau in its statistics .1,753,459 delating to the uses to which cotton is put is confined to the 162 EEDEEAL BESERVE BULLETIN". consumption of raw cotton, including linters, and that additional legislation will be necessary to enable the Census Bureau to report on the consumption of cotton which has been specially prepared or treated. At a recent hearing before one of the House committees it was brought out that the Census Bureau regards an estimate of 1,000,000 bales of cotton used in America during 1915 for the manufacture of explosives as conservative, and the statement was made at the time by the representative of the bureau that it is possible that as much as 1,500,000 bales had been used in this way during the year in the United States. It has been estimated unofficially that 2,000,000 bales were used in Europe last year in the manufacture of explosives, but I am told that the Census Bureau has no figures which throw any light upon the consumption abroad of cotton for this purpose. It is evident that much of the cotton now being exported to France is being used for explosives, as most of the cotton mills of France and all of those of Belgium are now within the German lines and are presumably not running for lack of cotton, although it is impossible to obtain definite information on this point. Swiss mills are said to be very busy, but their supplies of cotton have been cut off recently because they were supposed to be selling to Germany and Austria. Consumption by mills in Norway and Sweden, Holland and Spain, would be abnormally large if they could get the cotton, but high freights and naval operations in the North Sea have rendered their supply precarious. Japanese mills will undoubtedly consume a great deal of cotton, but on account of proximity and lower freights they will probably take all they can from East India. The Bussian mills are reported to be busy, but their supplies of American cotton must, for the present, come by way of Vladivostok, which means a long and expensive overland haul on a railroad congested with war material. The port of Archangel, however, which is icebound at present, will be open in May, and it is probable that Russia will add to its Btock of American cotton after that time. It is interesting to contrast the export movement during the present season with that of the last. The outbreak of the war in Europe on the 1st of August, 1914, resulted in a practical stoppage of cotton exports until November. During December and January, 1915, the movement abroad was heavy. While this movement was stimulated in February and March by the announcement of the forthcoming blockade of British waters by German submarines, the volume of exports continued satisfactory until early in May, or until the sinking of the Lusitania. From this time on the export movement diminished appreciably, and the advancing tendency in cotton prices was checked, followed by the slump in July, to which reference has already been made. During the present reason, exports from August to November ran considerably ahead of the very light movement of the preceding year, but since November, owing to the reasons already outlined, the export movement compares unfavorably with that of the previous season, although the movement for February APEIL 1,1916. compares well with that of February, 1914. The decline in cotton prices seems to have been definitely checked about the 1st of March. It is said that several British merchant ships hitherto used as transports are to be restored to commercial uses in the trade between New York and Liverpool. Italy and Portugal together have seized over 60 German steamers, which have been interned in their ports, the presumption being that these steamers will be put into commission for mercantile purposes. At any rate, there has been an easing in ocean freight rates, which now show a decline of 50 cents per hundred, or $2.50 per bale irom quotations current the latter part of February. Announcement was made a few days ago that 12 steamships are due to arrive at an early date at Galveston which will load with cotton from that port. The latest issue of a recognized authority on the textile trade has this to say regarding the demand for cotton: "The margin of profit between the cost of raw cotton and the market values of goods in the United States is now unusually wide, and it is the part of commercial wisdom for the manufacturer to secure for himself this margin of profit no matter what his inclination or judgment may be with respect to a possible wider margin of profits in the future. This consideration has induced a fair amount of buying for the account of American spanners during the past week. Were it not that much the larger part of the requirements of our mills for the season has already been secured this buying might be counted upon as a sustaining and perhaps even as an advancing influence in the markets for the immediate future. In addition to this buying for American account, some buying for foreign account has been in evidence." The ability and disposition of the banks of this country to take care of the legitimate wants of their customers, as well as to carry well-secured loans for those who are not customers, has never been greater than at present. At the close of business on March 6 the total of all paper under discount with Federal Reserve Banks, including rediscounts for member banks, open-market purchases of bankers' acceptances, trade acceptances, and commodity loans carried for member banks, was slightly over $51,000,000 against total deposits held by these institutions of $454,761,000; while on January 2 the amount of paper under discount was over $54,000,000 against deposits of $431, 085,000. Except in the Richmond and Atlanta districts the loans secured by cotton receipts are of a negligible amount, and in these two districts they have been considerably reduced since the first of the year. The total bills discounted with the Federal Reserve Bank of Atlanta, including the New Orleans branch, was, on January 2, $8,200,000, On March 6 this amount had been reduced to $4,420,000. The amount of loans held by the Federal Reserve Bank of Richmond on January 2 was $7,612,000, and on March 6 the amount of its loans was $6,433,000. The amount of discounted paper held by the Federal Reserve Bank of St. Louis on January 2 was $1,915,000, while on March 6 tlie amount was $1,429,000. The loans of the FEDERAL RESERVE BULLETIN". APRIL 1, 1916. ' Federal Reserve Bank of Dallas on January 2 amounted to $4,911,000, and on March 6 to $4,550,000. The same conditions are reflected in the statements of member banks. In all sections of the country first-class commercial paper is sought for at abnormally low rates, and I may say that for several months past the chief concern of the Federal Reserve Board over the monetary situation in this country for the immediate future has been that the unusually low rates prevailing in financial centers might lead to an unwise inflation of credits. There is every reason to believe that exports of cotton will continue on approximately the present scale during the spring and summer months up to the close of the present cotton year, and there seems to be little danger of there being an unwieldy surplus carried over into the next season. There is undoubtedly a considerable amount of unsold cotton in the South which is being held by farmers and country merchants, but the amount is probably no greater than in some previous years, as the stocks reported at interior towns on March 3 amounted to 1,080,000 bales, against 1,063,000 bales at the same towns oh March 5,1915. During the week ended March 3 the interior stocks decreased 35,761 bales, and receipts at all towns were 84,838 bales less than for the same week last year. Attention is invited to a comparative statement of amount brought into sight and spinners' takings for the weeks ended March 3, 1916, and March 4,1915: 1915-16 In sight and spinners' takings. 1914-45 Week. Since Aug. 1. Week. Since Aug. 1. Receipts at p o r t s t o Mar. 3 . . . Net overland to Mar. 3 . . . Southern consumption to Mar. 3 Bales. 107.849 35,173 Bales. 5,402,039 1,011,489 Bales. 284,634 31,314 Bales. 8,093,162 921,677 82,000 2,190,000 60,000 1,830,000 Total marketed Interior stocks in excess.. 225,022 1 35,761 8,603,528 634,711 375,948 164,959 10,844,839 943,420 Came into sight during week Total in sight Mar. 4 North spinners' takings to Mar. 3 1 189,261 34,396 9,238,239 2,135,026 310 989 88,743 11,788,259 2,047,309 Decrease during week. Movement into sight in previous years. Week. 1914, Mar. 6 1913, Mar. 7 1912, Mar. 8 Bales. Since Sept. 1. 198,304 154,692 281,157 1913-14, Mar. 6.. 1912-13, Mar. 7.. 1911-12, Mar. 8.. 12,673,042 11,856,556 13,421,418 Some private letters that I have received state that there were perhaps 2,000,000 bales of cotton held on March 1 by southern farmers and local merchants. If all of this cotton, or any large part of it, should be thrown upon 32779—16 3 163 the market at once, there would undoubtedly be a break in prices. But five months, or about 21 weeks, will elapse before any new cotton can come on the market. With the demand for export and from American spinners which seems assured', there is no reason to doubt the ability of the market to absorb much more than 100,000 bales per week. I refrain, however, as I have always done, from giving advice in particular cases. I believe that the policy of gradual and orderly marketing of the crop has been proved to be the correct one by the course of the market this season, and, while there are no doubt many holders of cotton who will regret that they did not sell when prices were higher, it is no doubt true that the higher prices last fall were obtainable by reason of the fact that there was no unseemly rush of cotton to the market; and, without regard to ownership, it is safe to assume that the cotton held back has contributed its part to the prices realized for cotton that has been sold. I wish that each individual farmer would remember, when the time comes for him to determine how much of his land he will put in cotton this spring, that we are living in unusual times and that it is impossible for any man or any group of men to forecast with certainty what the consumption of a staple like cotton will be. I believe in the gradual and orderly marketing of crops, but I believe just as firmly in the diversification of crops. Farmers of the Northwest, who produce the bulk of the great food crops of this country, have learned that it is dangerous to place reliance in one crop, even though it be a food crop, and, while they can not raise cotton, they diversify by planting different kinds of grain and by producing more than one kind of food. I quote a statement that was made recently by a prominent bank in the Northwest: "The investment market does not seem to be as active as the large amount of money in banks and the heavy savings balances would ordinarily indicate. General interest rates are so low that many people are content with savingsbank interest. The demand for farm mortgages is very strong, but our farmers are in such excellent condition financially that the supply of mortgages continues to be less then the demand. This, of course, has resulted in a decrease of rates to the farmers. Mortgages from the best farming communities of Minnesota and the Dakotas are especially hard to obtain. In former years, when there were plenty of these securities, it was not necessary for capital to go into the newer parts of the Northwest unless attracted by high rates. It is probable that present conditions will turn large amounts of money to investment in the less populous portions of the Northwestern States and will result in increased settlement and greater value for land. Whether this condition will result in an extended movement 'back to the farm' can not, of course, now be predicted, but tendencies in that direction have already been reported from two or three sources." 164 FEDERAL RESERVE BULLETIN. I am sorry that I can not yet quote similar statements from southern sources, but I think within a few years, after the South has learned the lesson of diversification, that like conditions will prevail, at least in favored sections. I am told that there are farmers in Alabama, and perhaps in all Southern States, who have never grown a stalk of corn. Let the farmers realize, and I urge upon merchants and bankers the importance of persuading them, that an increased acreage in cotton will be looked upon as an argument in favor of lower prices for the remainder of the crop now being held, although it is by no means certain that a large acreage would yield a larger crop than a smaller and better cultivated area. Let us suppose things turn out this year as some optimists predict. Suppose peace should be restored and there springs up a greatly increased demand for cotton. Under such conditions a large crop would, of course, sell for a great deal of money, but with the experience of 1910 and 1911 before us, is there any reason to doubt that a moderate crop would sell for still more? On the other hand, suppose the war continues ; suppose, unhappily, this country should become involved —and remember that in times of stress, when it comes to a choice between something to eat and something to wear, food must be provided at any cost, while new clothes can wait. Then I ask, would we not be far better off with a moderate supply of cotton and an abundance of food supplies? Why plant a larger area than can be cultivated thoroughly? Why scatter high-priced fertilizer over a large field when it would be more effective concentrated on a smaller? These matters must be determined now. A month hence will be too late. Let the farmers, the merchants, and the bankers of the South take counsel together; and let the newspapers, and those published at the county seats particularly, advocate in every issue for the next six weeks, and with all their force and power, APRIL 1, 1916. the doctrine of diversification, and let them point out the dangers of the one-crop system. Remember, my friends, that if the war continues for six months longer, in all probability the purchasing power of Europe will be seriously impaired. The cost of munitions and supplies is enormous, and food prices in the warring countries are soaring. According to the Bureau of Labor Statistics of the Department of Labor, food, taken as a whole in the United States, costs 3 per cent more to-day than it did a year ago. Prices in Great Britain have increased about 44 per cent and in France about 23 per cent. In other belligerent countries the advance has been 100 per cent. Remember that the cotton exchanges are not eleemosynary institutions, and that operators on cotton exchanges have no sentiment except a desire for gain. Market opinions vary as conditions change, and operators are not consistent bulls or bears, but shift their position without notice as new conditions arise. The fact is realized in all the cotton markets of the world that the course of prices depends primarily upon the supply, and for the next three months at least estimates of supply will be based upon the new crop acreage. What this acreage will be in America depends upon the farmers of the South. Should they decide during the next few weeks to produce their foodstuffs at home and to plant cotton as a money crop their position will be secure, but if, disregarding all the warnings and portents of the times, they decide upon a policy of all cotton, they will be taking a tremendous risk which no prudent business man would care to assume. As a factor in the cotton market the southern farmer is most powerful at planting time. Men at some time are masters of their fates; The fault, dear Brutus, is not in our stars, But in ourselves, that we are underlings. GOLD SETTLEMENT FUND. AUDIT OF FUND. Quarterly audit of the gold settlement fund was made on February 4 for the period from November 16, 1915, to February 3, 1916. Reports of the audit follow: WASHINGTON, D. C , March 9, To the FEDERAL RESERVE BOARD: 1916. I have the honor to report that I was present at and witnessed the audit of the accounts of the gold settlement fund and of the Federal Reserve Agents' fund for the period November 16, 1915, to February 3, 1916, made on February 4, 1916, by Messrs. W. E. Cadwallader, representing Federal Reserve Banks, and J. M. Slattery, representing Federal Reserve Agents^ there also being present Mr. Sherman Allen, settling agent, and Mr. Ray M. Gidney, deputy settling agent. Attached hereto are duplicate copies of the reports, dated February 15, 1916, of Messrs. Cadwallader and Slattery made to the chairman of the Conference of Federal Reserve Agents and to the chairman of the Conference of Governors, with Exhibit A showing the balances to the credit of each Federal Reserve Bank and each Federal Reserve Agent, and Exhibit B containing a list of the United States Treasury gold certificates counted, the total amount in the two funds on the date of audit being $140,760,000, which amount was verified by me. All balances have been verified in writing by the Federal Reserve Banks and Federal Reserve Agents, the reconcilements being also attached hereto. Respectfully submitted. W. M. IMLAY, Representing Federal Reserve Board. SIR: Acting under instructions of the respective chairmen of conferences of Governors and Federal Reserve Agents, we have made an 165 FEDERAL RESERVE BULLETIN. APRIL 1,1916. audit of the accounts of the gold settlement fund and the Federal Reserve Agents' fund, for the period begun November 16, 1915, and ended February 3, 1916. Present while counting the gold certificates, were the following gentlemen: Sherman Allen, assistant secretary, Federal Reserve Board; Ray M. Gidney, settling agent; W. M. Imlay, representing Federal Reserve Board. Proper reconcilements of all balances have been received. The results of this audit are sliown in two exhibits attached hereto: Exhibit A— Balances; Exhibit B—Gold certificates counted. Respectfully submitted. W. E. CADWALLADER, Representing Federal Reserve Banks. J. M. SLATTERY, Representing Federal Reserve Agents. Clearings and transfers through the gold settlement fund from February 25 to March 24 have amounted to $224,254,000. The net change in the ownership of the gold held in the fund through these operations has been $6,319,000, or 2.82 per cent of the obligations settled. The total clearings and transfers made since May 20, 1915, have been $1,641,845,000, and the total net change in ownership of gold has been 6.17 per cent of this amount, or $101,301,000. Amount of clearings and transfers, Federal Reserve Banks from Jan. 1, 1916, to Mar. 23, 1916, inclusive. Total clearings. Settlement of— Mar. 2,1916 Mar. 9,1916. Mar. 16,1916 Mar.23,1916 Previously reported Total ... Balances. Transfers. $55,306,000 60,916,000 45,323,000 52,112,000 $6,044,000 10,657,000 5,099,000 4,440,000 $6,048,000 650,000 2,116,000 1,783,000 213,657,000 375,238,000 27,240,000 41,792,000 10,597,000 12,253,000 588,895,000 68,032,000 22,850,000 166 AjPRiL 1,1916. FEDERAL RESERVE BULLETIN. Changes in ownership of gold. Federal Reserve Bank of— Decrease. Boston New York '. Philadelphia Cleveland Richmond.. Atlanta Chicago St. Louis Minneapolis Kansas City Dallas...... San Francisco r... Increase. $4,386,000 87,251,000 .. 5,001,000 Toted. Decrease. Increase. $99,000 559,000 4,600,000 5,649,000 7,995,000 12,131,000 16,659,000 $3,443,000 10,587,000 6,440,000 10,025,000 11,952,000 5,177,000 6,519,000 2,647,000 4,598,000 3,878,000 10,036,000 4,368,000 96,638,000 79,670,000 79,670,000 6,319,000 7,461,666 96,638,000 Balance to credit Feb. Balance 24,1916, plus net deposits Mar. 23,1916. of gold since that date. 344,000 749,000 409,000 023,000 655,000 736,000 119,000 621,000 049,000 455,000 471,000 039,000 $12,939,000 8,933,000 11,755,000 13,176,000 Total change from May 20, 1915, to Mar. 23,1916. From Feb. 25,1916, to Mar. 23,1916. To Feb. 24,1916. $162,000 Decrease. $4,287,000 87,413,000 $12,970,000 7,935,000 13,052,000 12,617,000 31,000 998,000 * 1,297,666 9,601,000 26,000 549,000 1,423,000 565,000 2,329,000 6,319,000 Increase. ""7*427*666 6,198,000 9,418,000 12,696,000 18,988,000 101,301,000 101,301,000 Gold settlement fund—Summary of transactions Feb. 25,1916, to Mar. 23, 1916. Federal Reserve Bank of— Balance last statement, Feb. 24, 1916. Boston. New York. Philadelphia Cleveland Richmond........... Atlanta Chicago .. St. Louis Minneapolis Kansas City.. Dallas San Francisco $3,344,000 5,749,000 6,289,000 11,713,000 10,675,000 5,736,000 10,769,000 2,621,000 4,049,000 2,075,000 9,501,000 3,989,000 Total Federal Reserve Bank of— Boston.... New York : Philadelphia..... . . Cleveland Richmond Atlanta Chicago St. Louis ... . Minneapolis... Kansas City Dallas . San Francisco Total.... 76,510,000 Balance last statement, Mar. 2, 1916. Transfers. Gold. Withdrawn. Deposited. Credit. $6,048,000 $1,030,000 150,000 '$80," 666" 160,000 so," 666" 2,740,000 1,000,000 2,000,000 5,970,000 1,240,000 Gold. Withdrawn. Deposited. $3,389,000 9,738,000 $5,000,000 10,695,000 10,037,000 240,000 10,926,000 ""'$356,'666' 120,000 6,132,000 4,577,000 987,000 56*666 4,238,000 615,000 630,000 2,750,000 9,092,000 1,354,000 71.780,000 Debit. Settlement of Mar. 2,1916. 980,000 8,160,000 $1,098,000 "4,'666," 666' 200,000 750 000 6,048,000 6,048,000 Net debits. Credit. $500,000 $500,000 150,000 150,000 650,000 650,000 Total credits. $6,272,000 $6,317,000 16,942,000 14,883,000 5,202,000 9,608,000 847,000 1,299,000 7,662,000 7,983,000 1,427,000 1,663,000 "2*i92,'666" 8,779,000 6,587,000 1,584,000 6,095,000 4,511,000 67,000 256,000 1,513,000 1,793,000 443,000 234,000 209,000 57,000 172,000 $2,059,000 6,044,000 Transfers. Debit. Total debits. 55,306,000 55,306,000 Net credits. $45,000 115,000 $3,389,000 9,738,000 10,695,000 10,037,000 10,926,000 6,132,000 4,577,000 987,000 4,238,000 615,000 9,092,000 1,354,000 6,044,000 71,780,000 4,406,000 452,000 321,000 236,000 189,000 280,000 Settlement of Mar. 9,1916. Net debits. Total debits. Total credits. $64,000 $6,347,000 $6,283,000 9,948,000 21,490,000 11,542,000 645,000 6,912,000 6,267,000 1,320,000 1,533,000 6,484,000 6,639,000 1,588,000 1,654,000 10,063,000 12,338,000 7,612,000 4,900,000 284,000 154,000 1,231,000 1,920,000 340,000 1,261,000 87,000 3,583,000 10,657,000 60,916,000 60,916,000 Mar. 2,' 1916, balance m fund after clearing. Net credits. Mar. 9, 1916, balance in fund after clearing. $213,000 155,000 66,000 2,275,000 2,712,000 130,000 689,000 921,000 3,496,000 '$3,325,000 5,290,000 10,050,000 10,140,000 10,851,000 6,198,000 6,702,000 3,749,000 4,368,000 3,424,000 10,013,000 4,850,000 10,657,000 78,960,000 167 FEDERAL RESERVE BULLETIN. APRIL 1,1916. Gold settlement fund—Summary of transactions Feb. 25, 1916, to Mar. 23, 1916—Continued. Balance last statement Mar. 16, 1916. Federal Reserve Bank of— Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis.. Kansas City Dallas............... San Francisco 78,960,000 Federal Reserve Bank of— Balance last statement Mar. 16, 1916. Total... Deposited. $3,325,000 5,290,000 10,050,000 10,140,000 ; ; ; ; ; ; ; ; ; ; ; ; 10 851 000 6 198 000 $300,000 6,702,000 3 749 000 4,368,000 3,424,000 10,013,000 4,850,000 Total....... Boston New York. . . . Philadelphia Cleveland . . Richmond Atlanta Chicago St. Louis Minneapolis.. Kansas City Dallas . . . San Francisco Withdrawn. $4,841,000 7,521,000 7,324,000 10,166,000 11,013,000 6,011,000 4,774,000 4,334,000 4,368,000 3,666 000 10,325,000 4,627,000 78,970,000 Debit. Credit. Net debit. $5,837,000 10,353.000 7,35i;000 769,000 6,298,000 1,136,000 480,000 121,000 7,962,000 2,178,000 250,000 3,623,000 71,000 1,616,000 251,000 ............ 58,000 ",$2*726*666" 74,000 "$i66'666" 70,000 "'$566,'666' 140,000 386,000 250,000 480,000 500,000 310,000 2,116,000 2,116,000 5,099,000 Transfers. Gold. Deposited. Debit. Credit. 700,000 16,000 30,000 130,000 5p,000 417,000 250,000 830,000 1,783,000 78,000 1,116', 000 339,000 1,783,000 $7,353,000 11,198,000 4,625,000 695,000 6,888,000 1,015,000 5,784,000 4,208,000 321,000 1,858,000 1,043,000 335,000 $1,516,000 845,000 585,000. 250,000 242,000 792,000 277,000 $4,841,000 7,521,000 7,324,000 10,166,000 11,013,000 6,011,000 4,774,000 4,334,000 4,368,000 3,666,000 10,325,000 4,627,000 45,323,000 5,099,000 78,970,000 Total debits. Total credits. $1,398,000 59,000 $8,611,000 12,583,000 7,131,000 1,525,000 6,418,000 1,867,000 7,039,000 5,752,000 105,000 765,000 240,000 76,000 $7,213,000 15,399,000 6,127,000 1,384,000 7,147,000 1,355,000 7,318,000 4,426,000 351,000 977,000 398,000 17,000 4,440,000 52,112,000 52,112,000 310,000 $400,000 Net credits. Net. debits. 1,004,000 141,000 350,000 45,323,000 512,000 1,326,000 M a r . 16, 1916, balance in fund after clearing. Total credits. 592,000 Settlement of Mar. 23,1916. $250,000 $120,000 $100,000 Total debit. $1,386,000 SOO^OO Withdrawn. Settlement of Mar. 16,1916. Transfers. Gold. Net credits. $2,816,000 729,000 279,000 246,000 212,000 158,000 4,440,000 Mar. 23, 1916, balance in fund after clearing. $3,443,000 10,587;000 6,440; 000 10,025,000 11,952,000 5,177,000 6,519,000 2,647,000 4,598,000 3,878,000 10,036,000 4,368,000 79,670,000 Federal reserve agents* fund—Summary of transactions Feb. 15, 1916, to Mar. 23, 1916. Feb. 24, 1916, Week ending Mar. 2, 1916. Week ending Mar. 9, 1916. Week ending Mar. 16, 1916. W e e k e n d i n g Mar. 23, 1916. Federal Reserve Agent at— Balance. Withdrawn. Balance. Withdrawn. Balance. Withdrawn. Balance. Philadelphia $4,100,000 $500,000 $3,600,000 $3,600,000 $3,600,000 8,630,000 1,780,000 6,850,000 6,800,000 6,800,000 $50,000 Richmond 13,450,000 Atlanta. 12,450,000 12,450,000 12,450,000 1, poo, 000 3,760,000 Chicago 3,760,000 3,760,000 3,760,000 4,540,000 St. Louis 4,490,000 4 440,000 4,440,000 50,000 Minneapolis...................... 2,350,000 " " " 5 6 , ~ 6 6 6 " 2,350,000 2,350,000 2,350,000 6,5.00,000 Kansas City........^ 6,500,000 "2*466," 666* 4,100,000 4,100,000 1,190,000 Dallas............ 1,190,000 620,000 " " " $ 8 0 "666" 540,000 570,000 10,780,000 San. Francisco. 10,780,000 10,780,000 10,620,000 160,000 ; Total 55,300,000 3,330,000 51,970,000 3,070,000 48,900,000 240,000 48,660,000 Withdrawn. $120,000 270,000 500,000 350,000 Balance. 50,000 $3,480,000 6,530,000 11,950,000 3,410,000 4,440,000 2,350,000 4,100,000 540,000 10,570,000 1,290,000 47,370,000 168 FEDERAL BESERVE BULLETIN. APRIL 1, 1916. INFORMAL RULINGS OF THE BOARD. Below are reproduced letters sent out from all why you should, not buy this paper on a time to time over the signatures of the officers satisfactory basis without being subject to the of the Federal Reserve Board which contain 50 per cent or 100 per cent limit. MARCH 4, 1916. information believed to be of general interest to Federal Reserve Banks and member banks of the system: Holding Political Office. Stock Values. Your letter quoting the resolution passed by your board of directors with reference to stock values to be paid to withdrawing banks has been received. You suggest that banks surrendering stock in the Federal Reserve Bank will be paid par plus 3 per cent up to December 31, 1915, and at the rate of one-fourth of 1 per cent each month thereafter. Assuming that the amount set aside for losses represents an actual and not merely an arbitrary estimate of the executive committee, the interest calculated to December 31 would seem clearly to represent the amount withdrawing banks are entitled to receive on stock surrendered. As to the one-fourth of 1 per cent allowed since that time, if this represents the actual earnings of the bank, the plan is in accordance with the provisions of the Act; but if the earnings show an excess over this amount, it will be necessary to pay the withdrawing banks the actual book value of the stock, provided it is not in excess of par plus one-half of 1 per cent per month since December 31. FEBRUARY 23, 1916. Trade Acceptances. You say in your letter, "If no mention were made on the draft of the transaction being based on an importation of goods, I take it that the acceptance might be classed as a trade acceptance/7 The fact that importation or exportation is involved does not exclude the character of a trade acceptance at all. Quite the contrary. You will have seen from our letter of January 21 that we have provided that trade acceptances which originate through importations from foreign countries and which are indorsed by banks or bankers may, if nec-7 essary, be taken within the range of bankers acceptances; that is, between 2 per cent and 4 per cent. There is, therefore, no reason at Your letter asking if an officer of a national bank which is a member of the Federal Reserve System can hold political office is received. Your correspondent evidently has in mind a letter issued by the Federal Reserve Board in December, 1915, in which the opinion was expressed that officers and directors of Federal Reserve Banks should not hold active political offices. This suggestion, however, had no application to an officer of a national bank, unless he be a director of a Federal Reserve Bank. MARCH 6, 1916. Savings Accounts Pass Books. Your letter of March 3 is received submitting a clause to be contained in the savings pass books of your bank with reference to withdrawals. Regulation E of the Federal Reserve Board (series of 1915), which relates to savings accounts, provides in part that— "The term 'savings accounts' shall be held to include those accounts of the bank in respect to which, by its printed regulations, accepted by the depositor at the time the account is opened— " (a) The pass book, certificate, or other similar form of receipt, must be presented to the bank whenever a deposit or withdrawal is made, and " (6). The depositor may at any time be required by the bank to give notice of an intended withdrawal not less than 30 days before a withdrawal is made." It is therefore suggested that the form should require presentation of the pass books in case of a deposit and also in case of a withdrawal of the whole or any part of the deposit, and the depositor should, over his signature, accept the terms prescribed. MARCH 9, 1916. APRIL 1, 169 FEDERAL RESERVE BULLETIJST. 1916. Intradistrict Clearing System. DISTRICT NO. 2. Registrar of stocks and bonds: New York State National Bank, Albany, N. Y. Second National Bank, Elmira, N. Y. Additions to and withdrawals from the intradistrict clearing system since the publication of the lists in previous issues of the Bulletin DISTRICT NO. 3. are as follows: Trustee, executor, administrator, and registrar of stocks DISTRICT N O . 2. Addition: Union National Bank, Troy, N. Y. DISTRICT No. 3. Withdrawals: National Bank of Catasauqua, Catasauqua, Pa. First National Bank, Freeland, Pa. Milton National Bank, Milton, Pa. First National Bank, Mount Union, Pa. DISTRICT NO. 4. Withdrawal: Commercial National Bank, Columbus, Ohio. DISTRICT No. 5. Withdrawals: Murchison National Bank, Wilmington, N. C. Farmers National Bank, Louisburg, N. C. National Loan and Exchange Bank, Columbia, S. C. DISTRICT NO. 6. Withdrawals: First National Bank, Ozark, Ala. Ben Hill National Bank, Fitzgerald, Ga. Holston National Bank, Knoxville, Tenn. DISTRICT NO. 8. Addition: State National Bank, Frankfort, Ky. Withdrawals: American National Bank, Fort Smith, Ark. Farmers and Merchants National Bank, Fort Branch, Ind. DISTRICT NO. 9. AdditionFirst National Bank, Libby, Mont. Withdrawal: First National Bank, Elbow Lake, Minn. DISTRICT N O . 11. Withdrawals: First National Bank, Durant, Okla. Tishomingo National Bank, Tishomingo, Okla. DISTRICT NO. 12. Withdrawals: First National Bank, Coalinga, Cal. Citizens National Bank, Redlands, Cal. Benton County National Bank, Corvallis, Oreg. Bellingham National Bank, Bellingham, Wash. Fiduciary Powers. and bonds: Exchange National Bank, Marietta, Pa. Hazleton National Bank, Hazleton, Pa. Registrar of stocks and bonds: Quaker City National Bank, Philadelphia, Pa. DISTRICT NO. 5. Trustee, executor, administrator, and registrar of stocks and bonds: Peoples National Bank, Martinsville, Va. DISTRICT NO. 6. Trustee, executor, administrator, and registrar of stocks and bonds: First National Bank, Bradentown, Fla. Manufacturers National Bank, Harriman, Tenn. DISTRICT NO. 7. Trustee, executor, and administrator: First National Bank, Sioux Rapids, Iowa. DISTRICT NO. 8. Trustee and registrar of stocks and bonds: Merchants-Laclede National Bank, St. Louis, Mo. DISTRICT NO. 9 / Trustee, executor, and administrator: First National Bank, Flandreau, S. Dak. Trustee, executor, administrator, and registrar of stocks and bonds: First National Bank, Lake Preston, S. Dak. DISTRICT NO. 10. Trustee, executor, and administrator: GreeleyNationalBank, Greeley, Colo. Rawlins National Bank, Rawlins, Wyq. Trustee, executor, administrator, and registrar of stocks and bonds: First National Bank, Fort Morgan, Colo. Union National Bank, Greeley, Colo. DISTRICT NO. 12. Trustee, executor, and administrator: Washington National Bank, Ellensburg, Wash. STATEMENTS FOR THE PRESS. The Federal Reserve Board to-day voted to grant the appeal of certain Connecticut bankers for the transfer of territory west of the Connecticut River from District No. 1 to District No. 2, in so far as relates to the banks situated in Fairfield County, Conn. FEBRUARY 29, 1916. Applications from the following banks for permission to act under section 11 (k) of the The Federal Reserve Board to-day voted to Federal Reserve Act have been approved since defer final action on the appeal of the Connectifche issue of the March Bulletin as follows: cut banks asking transfer from District No. 1 to District No. 2, in so far as not already acted DISTRICT NO. 1. upon, until a date not later than June 15, 1916. Administrator: Bath National Bank, Bath, Me. MARCH 6, 1916. 170 FEDERAL EESERVE BULLETIN. APRIL 1,1916. LAW DEPARTMENT. The following opinions of counsel have been National Bank v. Caslin (41 Minn., 552). A authorized for publication by the Board since bank, therefore, does not relinquish the rights and privileges of a member of the Federal the last edition of the Bulletin: Reserve System, nor cease to be such merely by Liquidating Member Banks. a vote to go into vokmtary liquidation. Any member bank, even though its shareholders have Section 5 of the Federal Reserve Act provoted to go into liquidation, may file an application, under the provisions of section 18 of the Federal Beserve Act, with vides in part that: the Treasurer to sell bonds deposited with him for the pur"When a member bank reduces its capital pose of securing circulation, provided such application is made prior to the surrender of its stock in the Federal stock it shall surrender a proportionate amount of its holdings in the capital of said Federal Reserve Bank. Reserve Bank, and when a member bank MARCH 9, 1916. voluntarily liquidates it shall surrender all of SIR: There has been referred to this office for its holdings of the capital stock of said Federal an opinion the question of whether a member Reserve Bank and be released from its stock bank in liquidation can file with the Treasurer subscription not previously called. In either of tHe United States an application to sell for case the shares surrendered shall be canceled. its account at par and accrued interest United From this it is clear that when a member States bonds which are held to secure circulabank liquidates it is required to surrender its tion. stock in its Federal Reserve Bank. Since a Section 18 of the Federal Reserve Act probank becomes a member of a Federal Reserve vides in p a r t After two years from the passage of this act Bank by subscribing to and being allotted and at any time during a period of twenty years stock, it follows that it does not cease to be a thereafter, any member bank desiring to retire member until such stock is surrendered and the whole or any part of its circulating notes, canceled. may file with the Treasurer of the United States This being true, there would seem to be no an application to sell for its account, at par and accrued interest, United States bonds securing reason why a bank in liquidation which has not surrendered its stock should not be entitled to circulation to be retired. In section 1 of the Act the term " member make application to the Treasurer for the sale of its bonds securing* circulation. bank" is defined to mean— Respectfully, " any national bank, State bank, or bank or M. C. ELLIOTT, Counsel. trust company which has become a member of To Hon. C. S. HAMLIN, one of the reserve banks created by this Act." Governor Federal Reserve Board. A bank becomes a member of the Federal Reserve System by subscribing to the capital stock of the Federal Reserve Bank of the district in which it is located, and upon issue of Warrants Issued in Anticipation of Assured Revenue. such stock to it is entitled to all the rights and Federal Reserve Banks may, under the provisions oi privileges of a member. A member is not dis- section 14 of the Federal Reserve Act, purchase warrants solved by a vote of its shareholders to go into issued in anticipation of the receipt of"assured revenues." voluntary liquidation, but continues to exist The term "revenue " as applied to the income of a State or as a person in law capable of suing and being other political unit, does not include the proceeds of a of public securities. Warrants which are issued in sued until its affairs and business are com- sale anticipation of the receipt of the proceeds of municipal pletely settled. National Bank v. Insurance bonds are not, therefore, eligible for purchase under the Company (104 U. S., 54, 74), Merchants' provisions of this section. APRIL 1, 1916. FEDERAL RESERVE BULLETIN". MARCH 7, 1916. SIR: The question has been raised whether . warrants issued in anticipation of the sale of bonds the purchase of which is contracted for by a reliable buyer are warrants issued ccin anticipation of the receipt of assured revenues/7 as provided by section 14. The American and English Encyclopaedia of Law states that " the word l revenue' is more generally used to designate the income of the Government arising from taxation, duties, and the like. The proceeds of lands or public stock sold would not be included as a part of the revenue of a State." The Supreme Court of the United States, in a discussion of. the meaning of the word "revenue/ 7 said, in the case of United States v. Norton (91 TJ. S., 568), that, though the lexical definition of the term "revenue77 is very comprehensive and would probably be broad enough to include the proceeds of public lands and the proceeds arising from the sale of public securities, nevertheless the term " revenue laws77 is, as a matter of common knowledge, never applied to cases of this kind. The Court of Appeals of New York, in the case of People v. N." Y. Central R. R. (24 N. Y., 485, 490), specifically held that "revenue77 generally designates the income of the Government arising from taxation, duties, and the like and does not include the proceeds of a sale of public stock. Story on the Constitution, section 880, in discussing the meaning of the term " bills for raising revenue/7 as used in the Constitution, says that "no one supposes that a bill to sell any of the public lands, or to sell public stock, is a bill to raise revenue in the sense of the Constitution.77 It seems reasonably clear, therefore, that the term "revenue/ 7 as used in paragraph (b) of section 14 of the Federal Reserve Act and as defined by the Supreme Court and other cases, is not sufficiently broad to include the proceeds of a sale of bonds, even though the sale is assured by a binding contract with the purchaser. As applied to the income of an indi- 32779^16—-4 171 vidual, the term "revenue77 would undoubtedly include such receipts, but as applied to the income of a State or other political unit the courts generally agree • that it has a narrower and more • technical meaning which, they say, expressly excludes the proceeds of the sale of public securities. Respectfully, M. C. ELLIOTT, Counsel. To Hon. C. S. HAMLIN, Governor Federal Reserve Board. Loans on Farm Land. Loans on farm land Come within the limitation imposed by section 5200 of the Revised Statutes of the United States. No national bank, therefore, may loan to any one person, firm, or corporation on the security of real estate an amount exceeding 10 per cent of the capital and surplus of such bank. MAEOH 23, 1916. SIR: I am in receipt of yours of the 22d asking for opinion of this office on the following question: Whether loans made by national banks on the security of farm land, under the provisions of section 24 of the Federal Eeserve Act, are subject to the limitations imposed by section 5200, Revised Statutes. Section 5200 provides that: The total liabilities to any association, of any person, or of any company, corporation, or firm for money borrowed, including in the liabilities of a company or firm the liabilities of the several members thereof, shall at no time exceed one-tenth part of the amount of the capital stock of such associations, actually paid in and unimpaired, and one-tenth part of its. unimpaired surplus fund: Provided, however, That the total of such liabilities shall in no event exceed thirty per centum of the capital stock of the association. But the discount of bills of exchange drawn in good faith against actually existing values, and the discount of commercial or business paper actually owned by the person negotiating the same shall not be considered as money borrowed. vSection 24 of the Federal Reserve Act provides that: Any national banking association not situated in a central reserve city may make loans secured by improved and unencumbered farm 172 FEDERAL KESERVE BULLETIN. land, situated within its Federal reserve district, but no such, loan shall be made for a longer time than five years nor for an amount exceeding fifty per centum of the actual value of the property offered as security. Any such bank may make such loans in an aggregate sum equal to twenty-five per centum of its capital and surplus or to one-third of its time deposits and such banks may continue hereafter as heretofore to receive time deposits and to pay interest on the same. Where a national bank makes a loan on the security of farm land, the maker and indorser of the note become liable to the national bank. Such loans can not be treated as bills of exchange drawn in good faith against actually existing values, or as commercial or business paper actually owned by the person negotiating the same. They are, therefore, not excluded from the limitation imposed by section 5200 by the proviso to that section. The question, therefore, arises whether section 24 of the Federal Reserve Act can be construed as an amendment to section 5200. It will be observed that no reference is made to section 5200 by section 24, and while a specific limitation is contained in this section, this limitation applies merely to the value of the security and the aggregate amount of such loans that may be made by a national bank— that is to say, it is specifically provided that no loans shall be made for an amount exceeding 50 per cent of the actual value of the property offered as security. This limitation is in no sense inconsistent with the provision of section 5200 which relates to the amount which may be loaned to any one person, firm, or corporation. It merely provides that the security must be double the amount of the loan. In the opinion of this office, therefore, section 24 of the Federal Reserve Act can not be construed as repealing any part of section 5200, Revised Statutes, and national banks are pro- APRIL 1,1916. hibited from making loans on farm land to any one person, firm, or corporation in an amount which exceeds 10 per cent of the capital and surplus of the lending bank. Respectfully, M. C. ELLIOTT, Counsel. Hon. C. S. HAMLIN, Governor Federal Reserve Board. Stamp Tax on Certificates of Stock. The following opinion, rendered by the Attorney General at the request of the Secretary of the Treasury, holds that section 7 of the Federal Reserve Act exempts certificates of stock issued to member banks by Federal Reserve Banks from the stamp tax imposed in Schedule A of the act of October 22, 1914 (38 Stat., 759). DEPARTMENT OF JUSTICE, Washington, March 10,1916. SIR: I have the honor to acknowledge receipt of your letter of February 15, 1916, wherein you ask my opinion as to whether certificates of stock to be issued to member banks by Federal Reserve Banks must be revenue stamped. In my opinion they should not be so stamped, and for these reasons: The Federal Reserve Act of December 23, 1913 (38 Stat., 258), provides t h a t Federal Reserve Banks, including the capital stock and surplus therein, and the income derived therefrom, shall be exempt from Federal, State, and local taxation, except taxes upon real estate. This act plainly frees such stock certificates of the stamp duty tax unless its force has been modified by subsequent legislation. Whether this is so or not depends on the interpretation of certain language in Schedule A of the act of October 22, 1914 (38 Stat., 759), providing for a stamp tax on— each original issue, whether on organization or reorganization, of certificates of stock by any such association * * * etc. APRIL 1,1916. In my opinion the exemption created by the first-named act is in no wise affected by the last quoted provision. The latter act can, and properly should be, read as imposing a tax on certificates of stock other than the capital stock of a Federal Reserve Bank. The rule controlling the case is announced by the Supreme Court of the United States in Washington v. Miller (235 U. S., 422, 428), as follows: In these circumstances we think there was no implied repeal, and for these reasons: First, such repeals are not favored, and usually occur only where there is such an irreconcilable conflict between an earlier and a later statute that" effect can not reasonably be given to both (citing cases); second, where there are two statutes upon the same subject, the earlier being special and the later general, the presumption is, in the absence of an. express repeal? or an absolute incompatibility, that the special 178 PEDEBAL BESEBVE BULLETIN. is intended to remain in force as an exception to the general (citing cases); and, third, there was in this instance no irreconcilable conflict or absolute incompatibility, for both statutes could be given reasonable operation if the presumption just named were recognized. See also Townsend v. Little (109 XL S., 512, 594); Ex parte Crow Dog (109 U. S. 558, 570); Rodgers v. United States (185 U. S., 83, 87, 89); United States v. Healey (160 U. S., 136, 146); United States v. Greathouse (166 XL S., 601, 605); People v. Hanrahan (42 N.W., 1124); State ex rel. v. Stratton (38 S. W., 83); Wheeler v. Lane (15 Vt., 26). Respectfully, T. W. GBEGOBT, Attorney General. To the SEOKETAKY OF THE TKEASTJKY. 174 FEDERAL BESEKVE BULLETIN. GENERAL BUSINESS CONDITIONS. General business and banking conditions are described in reports made by Federal Reserve Agents for the 12 Federal Reserve Districts, as of approximately March 25, substantially as follows: DISTRICT NO. 1—BOSTON. In practically all sections of New England and in almost all lines of trade exceptionally good business is reported. While there is a feeling of caution among manufacturers and the more conservative ones are trying to restrict buying to actual needs, the tendency of the retailer is to buy more freely than he has for some time past. The principal deterring factors are the embargo on freight, the high cost of raw material, and the shortage of skilled labor. Most important is the embargo on freight. This has become necessary because of the sudden expansion of trade and the lack of railroad and steamship facilities for handling it. It is practically impossible to get some kinds of freight from one section of this district to another, and through freight to New York is indefinitely tied up. The money market shows signs of strengthening, this being evidenced by the fact that banks appear unwilling to put out their money at the low rates that have been prevailing and by the fact that municipal notes are selling to yield a better return than for some months. Call money is 3 per cent; commercial paper 3 to 3i per cent for short dates; 31 per cent upwards for six months; 4 to 4 | per cent for a year; town notes, 3 to 3.40 per cent for six months; bankers' acceptances, 90 days, 2 per cent upwards. Loans and. discounts of the Boston Clearing House Banks show an increase of $7,897,000 over a month ago, and demand deposits have decreased $10,369,000 during the same time. The amount "Due to other banks" on March 18, 1916, was $137,838,000, an increase of $5,807,000 over last month. The excess reserve of these banks has decreased from APRIL 1,1916, ,908,000 on February 19, 1916, to $57,825,000 on March 18, 1916. Exchanges of the Boston Clearing House for the week ending March 18, 1916, were $219,789,796, as compared with $138,833,545 the corresponding week last year and $217,128,678 for the week ending February 19, 1916. Building ajid engineering operations in New England from January 1 to March 15, 1916, amounted to $30,153,000 and were the largest for over 15 years. The increase during the preceding month was $12,386,000 and the increase over the corresponding period of 1915 amounted to $6,002,000. Exports at the port of Boston for February, 1916, were the largest, with the exception of May, 1915, of any month for over three years, and amounted to $11,796,694, an increase of $3,079,494 over the corresponding month of 1915 and an increase of $3,474,227 over January, 1916. Imports at the port of Boston during February, 1916, established a new record, amounting to $28,581,61f. This is an increase of $16,342,388 over February, 1915, and an increase of $6,322,895 over January, 1916. Receipts of the Boston Post Office for February, 1916, show an increase of $85,428.77, or about 14 per cent over January, 1916. The first 15 days of March, 1916, show an increase over the same period last year of $25,014.86, or about 7 per cent. The Boston & Maine Eailroad reports operating income, after taxes for January, 1916, as $974,258, an increase of $523,802 over the corresponding month, of last year. The New York, New Haven & Hartford Railroad reports operating income, after taxes for January, 1916, as $1,420,462, an increase of $362,524 over the corresponding month last year. Reports show 137 failures in New England in February, 1916, with liabilities of $1,348,200, as compared with 165 failures with liabilities of $1,923,437 during the same month last year. Orders for boots and shoes continue very good, especially in women's fancy shoes. In this business the high and increasing cost of APRIL 1,. 1916. FEDERAL BESEBVE BULLETIN. leather is an important factor. Some manufacturers report that in spite of an increase in prices retailers are buying freely and raw materials are getting so high that a further advance in prices is expected in the near future. Manufacturers are nearing the end of their spring run and already orders for the fall run are reported to be unusually heavy. Cotton mills are running as full as the supply of labor will permit, the shortage being principally in the weaving departments. Good buying is reported in all grades of goods, but is especially evident in fine and fancy lines. Mills manufacturing these goods are sold several months ahead and the demand still continues strong. Mills are taking some orders for deliveries starting in August or September and running the usual period of three months beyond that time. Some mills are reported to be declining further advance orders at this time, as the trend of cloth prices is upward and mill treasurers wish to be in a position to take advantage of the higher prices. Woolen and worsted mills are running at full capacity with orders booked far in advance. The report of the National Association of Woolen Manufacturers as of March 1 shows the greatest activity since these reports were inaugurated some two years ago, the percentage of idle woolen spinning spindles and worsted spinning spindles being only 9.3 per cent and 7.9 per cent, respectively. It is also reported that the per centage of domestic business is very much larger than is popularly supposed, foreign business being a very small factor. In the paper trade the lack of some raw materials and the high price of others has brought about a condition that is unprecedented. The demand both at home and abroad for paper is abnormal. This has caused many jobbers and consumers to anticipate their needs far in advance, thus making a serious situation worse. In this industry the freight embargo has also caused serious inconvenience and in some cases considerable loss. 175 The principal feature in the bond market is the buying of securities exempt from taxes in Massachusetts due to the approach of April 1, which is tax day. An extremely heavy demand for this class of security is reported. DISTRICT NO. 2—NEW YORK. Trade throughout the district continues on a broad scale, with no apparent signs of a slackening in industrial activity at a time when some contraction is usually experienced. The month has witnessed a steady growth in the volume of business with production considerably below consumption. In spite of the advancing prices, which would ordinarily check the inquiry, for meichandise, current demand is very large, especially for immediate deliveries of leather, .footwear,, dry goods, and steel products. Manufacturers in these and other lines are rejecting urgent demands for goods which they are unable to supply either because their plants are booked to capacity or because of inability to obtain raw materials. Paper making, which is one of the most important industries in this district, furnishes a striking instance of the prosperity which has been apparent in so many lines of business during the past few months. Paper mills are working full time and are unable to fill the great volume of orders, being sold out several months in advance. Prices have advanced sharply, the upward movement during the past year ranging from $3 to $30 per ton. Collections are unusually good, owing to the fact that buyers are very anxious to maintain an exceptional credit standing in order to secure precedence in the filling of orders. Large shipments of paper are being made to South American countries. The demand from European countries is also heavy but difficult to supply on account of the shortage of vessels. In all retail lines activity is well sustained in spite of the fact that retailers are between seasons. Department stores are kept busy 176 FEDEBAL EESEKVE BULLETIH. through, special and clearance sales. Stormy weather checked the retail trade in spring goods but has resulted in a further distribution of heavyweight articles. Wholesale and jobbing trade continues brisk, the leading distributors in this city furnishing optimistic reports as to sales and collections. Manufacturers are overwhelmed with orders, but axe hampered by a scarcity of raw materials, especially dyestuffs, and by a scant supply of labor. The absence of supplies is further aggravated by a serious car shortage, which is uncommon at this period of the yeai and has caused the railroads to declare additional embargoes. Recent storms have imposed further burdens on the carriers. The New York Clearing House banks on March 11, 1916, reported aggregate loans of $3,343,715,000, deposits $3,552,286,000, and excess reserves $136,226,880. As compared with January 29, 1916, loans have increased $70,680,000, deposits have advanced $29,101,000, while excess reserves have decreased $41,574,860. Exchanges through the New York Clearing House for the month of February totaled $11,106,737,277, an increase of $4,624,910,730 over the same month ast year. On the New York Stock Exchange transactions during the month of February in both stocks and bonds aggregated less than in January, but showed a considerable gain over the corresponding month last year. Prices of shares were generally lower than in January. The par value of bonds sold during February, 1916, was $80,390,000—an increase of $36,666,500 over February, 1915— while the number of shares of stock traded in on the exchange aggregated 12,080,136 against 4,347,866 in February last year. New incorporations in Eastern States, embracing concerns with a capital of $1,000,000 or over, totaled $365,995,300 during February, an increase of $312,045,300 over February, 1915. Monthly reports at hand show 298 failures in this district during February, with liabilities APRIL 1» 1916. of $4,194,990, comparing with 329 in January, involving $8,810,900. Building operations in New York City fell off during February, permits for new construction amounting to only $8,801,906, or 17.9 per cent less than in February, 1915. The pig-iron output in February totaled 3,087,212 tons against 1,674,771 in February last year, the former figure representing a new maximum average production of 106,456 tons per day. . Railroad earnings continue to show striking advances over last year's totals, gross earnings for January aggregating $267,043,635, which is an increase of $46,840,040 over the coi responding month in 1915. Total net earnings for the first month of this year were $78,899,810 as compared with $51,552,397 in January, 1915. Call money was loaned throughout February from If per cent to 2£ per cent with renewal rates If per cent. Time loans on collateral ranged from 2J per cent to 3 per cent for 60 days and 3 per cent to 4 per cent for long-time money. Time money was slightly firmer than in the preceding month. Bankers' acceptances remained unchanged at 2 per cent to 2f per cent. Commercial paper ranged from 3 per cent to 3 J per cent, the main volume of business being transacted at 3 per cent. Toward the end of February it became more difficult to place short notes under 3 per cent. Quotations at closing rates were fairly steady during February on London and Paris sight bills. Sterling rates were, high 4.76|, low 4.75f, and on February 29 4.76f. Francs, high 5.86f, low 5.93, and on February 29 5.87f. German exchange early in February was 74 and later strengthened to 77J, but weakened to 73£ by the end of the month. Holland exchange continued at a premium throughout the month, and was quoted at 42.43f at the end of February. Eussian bills moved from 29f to 31f. The low rate on Italian bills was 6.77, high 6.68J. APRIL 1,1916. DISTRICT NO. 3—PHILADELPHIA. General business throughout this district is good, and our dependence on emergencyorders is diminishing. Complaint of difficulty in obtaining raw materials and satisfactory deliveries is becoming rather general, resulting in heavy advance purchases. Earnings are breaking records in many lines and prospects for the future are considered to be favorable. Advances in the quotations of steel and iron products are being made with increased frequency, but there is no indication that the end of the upward trend is near. High prices are being paid without hesitancy. The only apparent unfavorable condition is the delay in delivery of materials. Larger manufacturers freely admit that the peak of the emergency demand for machine tools is well passed. The railroad lines operating in this district report increased business and earnings. Freight is still seriously congested, and it is stated that in many places this congestion is augmented somewhat by abnormal buying which is in anticipation of increased prices in the near future and fear of scarcity of goods. Better conditions are indicated by the reports of business failures. During February there were only 78 failures in this district, compared with 93 during February of 1915. The liabilities were $1,237,000, compared with $1,695,000 for the respective periods. Special reports received from a large number of representative concerns throughout this district indicate that trade in most lines is normal or better, and the outlook good. Production costs are increasing at a rapid rate, wages having increased approximately 11 per cent over one year ago and materials 46 per cent. Profits have not increased proportionately with the rising costs of production. The replies to our inquiry, as summarized in the following table, show in some detail the present situation in the various industries: 177 FEDERAL RESEBVE BULLETIN. SUMMARY OF REPLIES. Is business What is the outlook? normal? Industries reporting. UnYes. No. Good. Fair. certain. Agricultural implements. Automobiles and parts Carpets, rugs, oilcloth, and linoleum... Cement, lime, etc. Chemicals (fertilizers, soaps, etc.) Clothing Coal and coal mining Confectionery Cotton and cotton goods. Department stores Dry goods, notions, etc Electrical supplies and apparatus Flour and grist mill products Furniture Glass G roceries and food products Hardware Hosiery and knit goods Iron and steel Leather, glazed kid, and shoes Lumber and millwork Machinery, foundry products, locomotives, etc Paints and coloring matter Paper and paper products Petroleum and refining. Pottery, pressed brick, etc Rubber goods Shipbuilding. Silks, laces, etc Slaughtering and packing Tobacco and cigars Woolens and worsteds Miscellaneous (roofing materials, plumbers' supplies, office machines, dental supplies, hats, watches, advertising).. Total Industries reporting. 10 15 13 301 30 244 Per cent inHave profits crease in pro- increased production costs portionately over 1 year ago. In In mawages. terials. Agricultural implements . Automobiles and parts Carpets, rugs, oilcloth, and linoleum.. Cement, lime, e t c . . . . . . . Chemicals (fertilizers, soaps, etc.)..... Clothing Coal and coal mining. — Confectionery Cotton and cotton goods. Department stores Dry goods, notions, etc Electrical supplies and apparatus.... Flour and grist mill products Furniture Glass Groceries and food products Hardware Hosiery and knit goods Iron and steel Leather, glazed kid, and shoes Lumber and millwork Machinery, foundry products, loco- j motives, etc i Paints and coloring matter ; Paper and paper products. I 57 45 25 Yes. No. 5 2 5 3 9 7 3 5 5 3 1 3 2 5 3 4 7 a 6 10 8 37 7 178 FEDEEAL RESERVE BULLETIN. SUMMARY OF REPLIES—Continued. Industries reporting. Have profits Per cent increase in pro- increased production costs portionately over 1 year ago. with costs? In Petroleum and refining Pottery, pressed brick, etc Rubber goods Shipbuilding Silks, laces, etc , Slaughtering and packing Tobacco and cigars Woolens and worsteds Miscellaneous (roofing materials, plumbers' supplies, office machines, dental supplies, hats, watches, advertising) Total Approximate averages. In materials. Yes. No. 53 14 42 100 44 37 14 37 46 97 212 APEIL 1,1916. provisions. Grain shipments continue to be a leading feature in the export trade, and since the beginning of the year 9,315,339 bushels have been shipped, including shipments of Canadian grain through Philadelphia, as against 6,408,707 bushels for the corresponding period of 1915. Petroleum exports have also shown a substantial increase. The value of exports promises to be well over $100,000,000 for the fiscal year ending June 30, 1916, as is signified by the following table: VALUE OF EXPORTS. 1913, June 30 1914, June 30 1915, June 30 $76,169,827 64, 881,040 90,516,521 VALUE OF IMPORTS. The following comparison of the results of the 1913, June 30 93,209, 678 investigation summarized above with the re1914, June 30 96,483,412 sults of a similar investigation six months ago 1915, June 30 72,948,013 is of interest: The Commissioners of Navigation report foreign and coastwise arrivals for the month March, Septem1916. ber, 1915. of 329 vessels with a tonnage of 635,480, compared with 309 vessels with a tonnage of Percentage of concerns reporting business normal or better -90.9 36.0 538,838 for February, 1915. The sailings are Percentage of concerns reporting the outlook "Good"..... 74.6 42.1 reported as 358 vessels with a tonnage of Percentage of concerns reporting the outlook "Fair" 17.5 21.6 669,829, compared with 341 vessels and a Percentages of concerns reporting the outlook "Uncertain" 14.9 tonnage of 579,316 for February of last year. 7.9 Percentage of concerns reporting the outlook "Poor" None* 21.4 Predictions of firmer money rates have not Number of concerns reporting the outlook to be either "Fair," "Poor," or "Uncertain"......... 83 217 thus far materialized. There is a good demand for money, but banks a-re too well supplied The business of the port of Philadelphia is with it to attempt to ask higher loan rates. larger than it has been for a long time. There Deposits are holding up well and clearings, have been substantial increases in imports of as shown by the following figures, indicate a corkwood, iron and manganese oresj nitrate of satisfactory trend of business: soda, magnesite, and sugar. Duties collected January and February— during February amounted to $1,754,662, an Per Clearings at— cent increase of $1,035,710 over February of 1915. increase. 1916 1915 A large part of the imports was due to heavy shipments of Cuban sugar to this city to be Philadelphia 59.5 $1,975,601,495 $1,238,264,812 26,762,018 12.2 26,168,726 refined for England. A large refinery which Scranton 13,305,625 Reading. 36.1 18,163,299 12,782,764. 73.9 22,227,616 has been closed for a number of years was Wilmington 13,708,360 4.6 Wilkes-Barre 14,338,006 14,302,868 36.7 19,568,399 Trenton recently put into operation to help handle Harrisburg 12,849,556 12.9 14,504,152 11,015,371 39.3 15,340,563 Lancaster this increased business. 6,804,532 2.5 6,974,583 York 5,038,948 90.7 9,607,285Chester Exports also showed a gain over February Altoona 4,161,041 10.5 4,597,840 . 3,531,744 35.5 4,787,627. of last year, including large amounts of grain, Norristown 2,131,879,591 1,362,527,639 55.7 Total oil, sugar, anthracite and bituminous coal, lard, oil cake, gas and lubricating oil, and * Decrease. APRIL 1,1916. FEDEKAL KESEKVE BULLETIN. DISTRICT' NO. 4—CLEVELAND. Conditions in trade and industry in district No. 4 have not changed materially in the last 30 days. In the steel business the demand continues, and there has been a further enhancement in values. Some reports indicate that the prices now prevailing are having the effect of checking business in certain lines, and it is believed that conservatism will prevail from now on in this respect, at least in the larger companies. The United States Steel Corporation statement of unfilled orders shows that it has an average of seven months7 work on its books, but for certain products promises earlier than the first quarter of next year can not be obtained. Among smaller companies the chief difficulty is getting raw materials and made-up parts necessary in operation. The movement of iron ore from the receiving docks toward the furnaces is as active, as .oar conditions in the trade will permit. Coke shipments from the Connellsville district for the week ending March 11 were 463,244 tons. This is over 20,000 tons above the average for the months of January and February. Advances in the pay of coal miners, with one of the strongest coal markets in some years, are features of the bituminous coal situation in this district. The glass business is in a very satisfactory condition. Two 10-cent advances in Pennsylvania crude oil, making the price now $2.60 a barrel, has further enlivened the oil industry, and there has been a noticeable increase in development work in the various fields. Mercantile business is running ahead of last year by a substantial percentage. Many houses early in March were enabled to close out much of their winter stock because of the return of unseasonable weather. While this delayed trade in spring goods, it lessened the stock carried over for the year and was an unexpected benefit. 179 The reports from the garment industry indicate a good spring trade. In most cases business is better than normal. Dyed stuff, especially blacks of guaranteed quality, are getting very scarce. Business failures as reported show 127 for February, 1916, with liabilities of $894,497, as against 138, with liabilities of $1,196,421, for February, 1915. Prosperous times with universal employment has served to quicken the real-estate business. There is a scarcity in a number of communities of houses for rental. Heads of families are turning from rented houses to homes of their own, and contractors report that more than the usual number of mediumpriced dwellings are under way. There were 2,575 building permits issued in the six largest cities of the district during the month of February, 1916, as against 2,307 for the same month last year. The valuation of $4,571,212 for February, 1916, shows an increase of 29.5 per cent over the same month last year. The same cities report 41,971 permits for the year ending February 29, 1916, as against 36,341 for the previous year. The total valuation of building operations in these cities for the year ending February 29, 1916, was $79,221,251, as compared with a total of $67,223,585 for the year ending February 28, 1915, or an increase of 17.8 per cent. Post-office receipts in the same cities for February, 1916, show an increase of 18 per cent, the totals for the month being $1,121,836.51, as against $950,444.98 for the same period in 1915. Reports on collections continue on the whole quite good, with exceptions among those who who are more or less seriously affected by the freight embargoes. The supply of loanable funds in the district is still large and rates continue low. Bankers, however, report a somewhat better demand and borrowings by customers who have been off their books since early in 1915. Part of this 180 FEDEEAL RESERVE BULLETIN. demand is seasonal, but it also seems to indicate that the increase in loans is beginning to overtake the increase in deposits. Deposits of member banks in the six principal cities of the district increased from December to March $44,198,373. Comparative figures of deposits and loans and investments for 1915 and 1916 are as follows: Deposits. Loans and investments. Mar. 4,1915. Mar. 7,1916. Mar. 4,1915. Mar. 7,1916. Toledo Youngstown Cleveland Cincinnati Columbus Pittsburgh..; $28,226,647 10,041,486 82,931,897 72,912,642 27,018,047 183,824,987 $35,160,779 14,138,713 115,878,885 86,026,493 30,995,408 258,873,444 $24,622,453 11,916,405 68,685,715 63,741,466 21,075,329 164,332,747 $31,095,023 13,025,371 91,164,611 72,690,882 22,389,678 196,388,487 402,955,706 541,073,722 354,374,115 426,754,052 Clearing figures in the same cities for the first 15 days of March are as follows: First 15 days of— Increase. March, 1915. March, 1916. Cleveland Cincinnati Columbus Pittsburgh Toledo Youngstown Per cent of increase. .155,251,795 52,137,650 14,282,200 97,977,719 14,420,936 3,255,930 $79,242,541 $23,990,746 71,390,900 19,253,250 17,884,000 3,601,800 129,264,270 31,286,551 19,494,351 5,073,415 5,991,177 2,735,247 43.4 36.9 25.2 31.9 35.2 83.9 237,326,230 323,267,239 36.2 85,941,009 The increase in dollars and cents has been larger in commercial departments than in savings departments, but the increase in savings departments has been of a record-breaking character. A number of banks report gains in new savings business in February as exceeding those of any other month in their history by more than 50 per cent. A heavy decline in grain prices has stopped sales by farmers. Since spring work is close at hand, this will result in considerable grain being carried over for the time being, and will eventually affect country collections. Burley tobacco is virtually all out of the growers' hands. Good prices were obtained, about $3 per hundred higher than last year. Crop estimated about 75,000,000 pounds under normal. APRIL. 1,1910. DISTRICT NO. 5—RICHMOND. State legislation in South Carolina by enactment of the Lancy-Odom Bill has created a condition in the matter of insurance sufficiently serious to cause the withdrawal from the State of practically all outside fire insurance companies. Until the situation is modified, and no tangible remedy is yet apparent, it is probable that the public will find it difficult to obtain adequate protection. A relative difficulty in effecting loans against stored merchandise and products may be reasonably expected and a curtailment of volume in commodity paper would appear very probable. West Virginia reports continued heavy shipments of coal, and better volume of business at higher prices in hardware supplies, and jobbing business generally better than last year. Cotton-mill operations are reported most satisfactory. Shipbuilding in Baltimore shows rather unusual activity and completions ahead of contract time are bringing large bonuses. Ship repairs are reported urgently desired and very profitable. Money is easy, except for long terms, and borrowers have no difficulty in obtaining sufficient for their legitimate business needs. Unfavorable weather conditions have delayed work on farms throughout the district. The loss of tobacco plants in South Carolina, by freezing, indicates that the 1916 crop will be considerably below normal in that State. Grains are more or less backward by reason of cold weather. Cotton acreage in the Carolinas will be slightly increased over last year. Fertilizer costs are higher than last year and it is questionable if farmers will use up to their last year's standard, either in quantity or quality. Many faimers intend to raise the bulk of their food supplies at home. There are more hogs and cattle on the farms this year. Truck farmers anticipate a good season on smaller operations owing to reported shortage of potato crop in the north and northwest. The lumber market is hampered by reason of congested terminals and apparently by some discrimination as regards rail transportation. APEIL 1,1916. FEDERAL BESEB.VE BULLETIN. in favor of higher freight tariff goods and products. The cotton-oil Industry has suffered somewhat by reason of high cost of seed, but correspondingly better prices for oil and meal indicate a fair margin of profit for the season's operations. DISTRICT NO. ^--ATLANTA. Trade conditions are equal to those of last month. Bankers do not find in the current demand for loans much promise of higher interest rates. While business continues to expand, as recorded by bank clearings, the money required for such expansion appears to be in good supply. There is an apparently settled belief that the Federal Reserve System, among other things, has created a stable condition in the credit market. The result of this is seen in the apparent disposition not to borrow in anticipation of a possible future scarcity, as has been the custom in previous years. In the Louisiana district sugar, rice, and lumber are unusually active and the price is reflected by the advancing market. The constitution of Louisiana has been amended to free money ijx all forms, mortgage notes and similar paper from taxation, and to permit any bank in any country to establish branches in the State. New Orleans continues to maintain her position as the second port of the United States, exceeding her nearest rival, Boston, by $11,000,000 for the year 1915. The large cotton terminals owned and operated by the State are now in operation, and the State has under construction large grain elevators, greatly increasing the port facilities. Hattiesburg, Miss., and Jackson, Miss., report conditions better than for many years. Lumber is active but handicapped on account of car shortage. The weather has been favorable for preparing and planting, and more cotton will be planted in this section than last year. Much, greater interest is being manifested in stock raising. The sea-food canning industries of the Gulf towns are doing a large volume of business, but prices are low. These towns are all having heavy tourist travel. 181 Atlanta bank clearings for week ending March 18, 1916, showed a gain of $4,000,000 over corresponding week of 1915. Weather conditions through the State have been favorable for preparing and planting crops. The sale of fertilizer tags for the first two months of 1916 were double that of 1915, indicated an increased acreage in cotton planting. At Savannah, business conditions are reported good. A $3,500,000 sugar-refining plant is to be built at that place. At Mobile and in the interior the lumber business is good but is retarded, due to lack of cars. Export business Is likewise good, but suffering for lack of shipping facilities. At Birmingham the iron and steel plants continue to operate at full capacity, with large amount of orders contracted ahead. Salesmen have been withdrawn in some iron and steel lines. The increased employment of labor at relatively high wages has had a good effect on the retail business. Steel mills have been forced to refuse additional orders. Prosperity in the iron trade for the remainder of the year is assured. The Alabama Power Co. is making extended improvements throughout the State and has announced plans to more than double its capacity. At Anniston, Ala., it recently put in operation a hydroelectric steel plant, the first of its kind in the South. Business conditions are very favorable in the Anniston Iron and manufacturing district, with the exception of a wage strike in the large pipe industries. The Florida planters report a successful fruit season and early truck farming is in excellent condition. Planters and shippers look forward to a most satisfactory business during the spring. While some districts report increase in cotton acreage, the general tendency will be to diversification and stock raising. The lumber market throughout the belt appears to be in a more healthy condition. The French Government recently let contracts with southern mills for 50,000,000 feet of lumber, and bids are being prepared covering large contracts for other foreign Governments. 182 FEDEBAL KESEBVE BULLETIN. in the Tennessee tobacco markets larger sales are reported, and the houses giving prizes are active. Prices show very little gain. It is reported that very little of the tobacco is in the hands of the speculators. Much interest is being shown in the next crop, and reports indicate considerable increase in acreage.. There has been a considerable increase in passenger traffic as well as in freight business. There is some complaint in various parts of the district of delayed shipments of raw materials duetto railroad congestion and car shortage. Very little new construction work is being placed. DISTRICT NO. 7—CHICAGO. There is a continuance of general business activity throughout the Seventh Federal Reserve District, with an abundance of banking funds. Certain authorities consulted are of the opinion that the increased costs in manufacturing and merchandising and the augmented volume of trade will soon bring about a reduction- in the loanable money supply and there will be at least a slight rise in rates. Institutions dealing with agricultural sections anticipate a spring demand, although this may not be fully realized, due to the reported volume of outside money which has been loaned on first mortgages at low rates and higher valuations. This outside money is said to have materially assisted northern Iowa, which suffered from the disaster to its corn crop last fall. The banking sentiment is generally optimistic as to the prospects. Undue inflation in credit, merchandise, and securities is feared in some quarters, and these things are being carefully watched by the more conservative. Iowa reports a shortage of seed corn, but it is thought that this will be offset by the more careful testing and selecting of seed. Sleet storms threatened some damage, but the outlook is said to be as favorable as normally at this time of year. Michigan advises that fruit prospects are good, wheat fairly well protected during the winter, and weather entirely seasonable. Sections of Illinois and Indiana re- APRIL 1,1916. port some damage to the wheat crop, but there is difficulty in judging the extent at this date. Those in the agricultural implement business are looking forward to a volume corresponding With last season in spite of the decreased crop acreage. There is some complaint as to inability to get certain materials for factory production, particularly steel, but on the whole a satisfactory condition seems to prevail. The demand for automobiles is substantial, but the shortage of railway equipment is causing manufacturers much uneasiness and difficulty in making deliveries. Chicago is reasonably active in the erection of apartment buildings and small manufacturing plants, but office buildings exceed the present requirements and, except in special cases, there will probably be no new demand in this line for some time. There is improvement in cement, with firmer prices and increased bookings. February showed a good demand for brick, particularly when compared with previous years at the same season. The coal operators and mine workers have reached an agreement covering the scale of wages to be paid the miners for the ensuing period of two years, and the coal which was stored by large consumers, the railway companies, etc., will have a tendency to restrict the sales from the mines and may temporarily lower prices. The heavy requirements of the railroads and the steel mills, with their allied industries, may tend to somewhat relieve this situation. Wools, silks, and linens are rising in value, and mill deliveries are reported unsatisfactory, owing to the large demand for goods. Merchants are purchasing heavily at the new quotations, and collections will depend upon their ability to dispose of their stock. There is no doubt of the increased purchasing power of- the average wage earner, but the question exists in some quarters as to whether the retailer is not overstocking, possibly in anticipation of a general shortage of goods later. Grand Rapids furniture factories are running full time and turning out a large volume APRIL 1,1916, FEDERAL RESERVE BULLETIN. of product at good prices. The Government report showed large farm reserves of wheat March 1, and these, together with the new crop, even if the fall wheat is short of last year's supply, should furnish plenty for all necessary requirements for the ensuing year. Corn is firm, and oats at a somewhat low pricOj due to large farm stocks, indifferent cash demand, and inability of shippers to fill sales because of various embargoes placed by the eastern railroads. The grocery business is having increasing distributive sales, a favorable outlook, and fair collections. Heavy .demand in hardware is apparent, prices are higher, and the wholesale houses report difficulty in procuring goods. An active trade still continues in leather, although this is usually the slow time of year. Business is above normal, and a record volume is anticipated by some authorities. The raw materials are at high prices and belting leather has advanced. In the latter line a slight decrease in sales may result from the heavy purchases by consumers and jobbers during the past few months. Collections are said to be good. Shipments of live stock are running heavier than than a year ago, and values are the highest since 1910. Stock in the country is reported as increased in number with the. possible exception of heavy feeding cattle. There seems to be some decrease in the cattle on feed. The packing establishments advise that trade is, brisk, with a heavy export demand, and shipments retarded by lack of transportation facilities. Distilleries are running at capacity. The 1916 supply of Kentucky whisky is estimated at 20,000,000 gallons, with a production to February 1 of 2,000,0.00 gallons more than during the same period last year, but less than an average four-year crop. Breweries are reported as transacting only a fair volume of business. A general improvement in the lumber industry is reported, with, firm and advancing prices. In some localities collections are said to be 183 only fair, but on the whole the outlook is good and the manufacturers are very hopeful for the future. Distribution through mail-order houses continues to increase with automobile accessories, phonographs, vacuum cleaners, and a few other luxuries especially in demand. The piano industry shows improvement, but the increased cost of materials and advancing wages are commented upon, as is the shortage of skilled labor. The activity formerly reported in steel is well maintained, and the buyers are willing to pay the present abnormally high prices if they can get the material. The railroads are said to be liberal purchasers, some for 1917 delivery. Current prices are very firm with an upward tendency. Collections reported good with the exception of certain points in southern Michigan. This year has developed an exceptional demand for watches, and factories state they are running full time, although February and March are usually rather quiet, with the best sales at holiday time. The market for wool has not changed materially, although the volume of wools moving to the manufacturers is said to- be less than has been the case for the past four months. This is attributed to past accumulations to cover requirements for the next few months. 'Woolen mills are busy, and jobbers and retailers are buying with a freedom which will probably affect collections if .the anticipated demand from the consumer fails to materialize. Clearings in Chicago for the first 15 days of March were more than $175,000,000 in excess of the first 15 days of February, and amounted to $908,000,000, as against $728,000,000 for the first 15 days of March in 1915. Clearings reported by 17 cities in the district outside of Chicago amounted to $225,000,000 for the first 15 days of March, 1916, as compared with $168,000,000 for the first 15 days of March, 1915, and $194,000,000 for the first 15 days of February, 1916. Deposits in the 8 central reserve city member banks in Chicago were 184 FEDEKAL BESERVE BULLETIN. $648,000,000 on March 21, 1916, a decrease of $4,000,000, as compared with February 17, 1916. Their loans were $438,000,000, an increase of $12,000,000, as compared with the same date. DISTRICT No. 8—ST. LOUIS. The active properous condition of all business interests in this district, which has been noted in the last two reports continues. In general, it may be said that February was notable for increases in price in practically every line, and for the marked scarcity of raw products in probably a majority of the manufacturing industries. Practically all classes of merchants report that the question of delivery is more important to them than that of price. The price of raw material in many branches has gone up rapidly during the past 90 days, but even so, there seems to be no slacking in the demand for finished articles even at a marked increase in cost. Retailers as well as wholesalers feel the result of this activity, and practically all of the large department stores in St. Louis report record business for the month of February. The revival of business seems to have spread from merchants and manufacturers to the building trade, and, in turn, to operators in real estate. There has been a marked increase in the building permits in the large cities, and this/0 among other causes, has contributed to the recent rise in price of lumber and other building materials. Large transfers of real estate are noted from day to day, and, in general, the real estate market is more active than it has been for many months. The railroads operating in this district continue to show gains equal to, or higher than, those reported during December. The increase in net earnings during December was particularly noticeable in the roads operating in the northern section of district No. 8. The increases noted for January, 1916, seem to be more general, every trunk line in the district showing substantial gains in gross and net earnings as compared to last year. A month APEIL 1,1916. or two ago, a car shortage was reported from this district, and this situation continues at this time. However, it is not so serious as noticeably to impair the movement of freight, but is nevertheless receiving the careful consideration of railroad operators. Figures on the winter wheat crop in this district have been compiled from private sources, and it appears that the acreage is somewhat smaller than reported in the March issue of the Bulletin. Serious damage has been reported from portions of the district, particularly the southcentral part of Missouri, but the general opinion from those in a position to judge seems to be that it is yet too early to make any definite forecast on the 1916 crop. I t appears difficult to estimate the extent of damage reported in certain localities until the frost is out of the ground and it can be definitely determined whether or not the roots of the wheat are killed. The 1915 cotton crop was profitable to southern planters, and their prosperity had its effect on the season's demand for mules from the southern part of this territory, this year's business being a distinct improvement as compared to that of 1915. The supply of cattle, hogs, and sheep has been somewhat limited in the past 30 days, and this is, in a measure, the cause of the marked increase in price which is noted. Prices for cattle and hogs have advanced materially and the demand continues active. The trend of the horse market seems to be upward, and it is reported that the United States Government is in the market for horses suitable for Army use. An examination of the condensed statement of the banks belonging to the St. Louis Clearing House Association furnishes some interesting facts. Forty-four banks are members of the St. Louis Clearing House, and of these, eight are members of the Federal Heserve System. During the period from December 31, 1915, to March 7, 1916, loans and discounts of these 44 banks have increased nearly $19,000,000, whereas deposits have increased during this same period over $24,000,000. This has occurred despite the activity of general business APRIL 1,1916. FEDERAL BESEEVE BULLETIN. 185 for the first half of the year, and in many cases throughout all of 1916. Reports of January and February building permits from the principal cities show substantial increases as compared with a year ago. The grain market has shown no considerable recovery from the low point touched by the break in prices of last month. Elevator stocks of wheat in Minneapolis and Duluth are 28,289,000 bushels, or an increase of 5,722,000 bushels over a year ago. Crop year receipts to the 18th instant were 212,813,000 bushels, or an increase of 76,494,000 bushels as compared with a year ago. The Hour production continues at about the same totals as during last month. There are some reports of spring agricultural activities from the western portions of the district, but over the greater part of the territory it is not probable that any work will be done before April 10. The mild weather is carrying off the snow and will rapidly put the ground in condition for spring operations. There is still a considerable amount of grain from the 1915 crop held on farms. This will not move freely until country roads are again in good condition. DISTRICT NO. 9—MINNEAPOLIS. Loans and discounts over the district show A generally favorable spring outlook is re- some improvement, but bank rates are practiported at ail points in this district. Severe cally unchanged. winter has cleaned up country stocks of seasonable goods and opened the way for liberal DISTRICT NO. 10—KANSAS CITY, Business in the tenth district continues to spring buying. Stocks generally are light. Deliveries by distributing concerns during Jan- increase rapidly and previous high records are uary and February were considerably heavier constantly being broken in many lines. During the month the prices of cattle, sheep, than a year ago, but largely represented goods and hogs have broken all previous records for a purchased last fall. Collections have been very good. The de- similar period, the price upon the latter class mand for money has been easy at country of stock having increased 44 per cent within points and bank deposits large, as a result of three months. There has been some complaint as to wheat the amounts received by farmers for their grain crops. Open accounts of country merchan- damage in various localities through lack of disers have been reduced and the accounts of moisture and other causes, but no harm of a wholesalers with country customers have been serious nature is yet apparent. Business confreely liquidated. Trade generally is in much tinues to be somewhat hampered by lack of transportation facilities. better shape than is usual at this season. One of the great industries of the tenth disIndustrial enterprises are very prosperous, with orders ahead guaranteeing full production trict, the importance of which has not been and the considerable amount of new financing which has been undertaken. The banks, particularly those in the large cities, still hold excess reserves and are in the market for investment of surplus funds. Commercial paper of the best names is quoted at 3 to 3} per cent, with other names an eighth to a fourth higher. The demand is active, and the brokers report a somewhat well-defined feeling that rates will be stronger in the near future. The bank loan rate to customers is, if anything, lower than it has been for several months. The average in St. Louis is probably around 4J per cent, with proportionately higher rates in other parts of the district as the size of the community decreases. The general impression among those well informed seems to be that the money market is somewhat unsettled, due to possible complications with the de facto Government of Mexico. It seems probable that, in spite of the large accumulation of reserves throughout the country, rates are now as low as they may reasonably be expected to be and that the increased activity in all business will have its due effect and cause a somewhat firmer market. 186 FEDERAL RESERVE BULLETIN. generally appreciated heretofore, is the production of oil. Three of the ten recognized oil fields in the United States are located within this district, viz, the Mid-Continent, covering Oklahoma and Kansas; the Wyoming, and the Colorado. The estimated oil production for the United States in 1915 was approximately 291,400,000 barrels. The three fields in Federal Eeserve District No. 10 produced a total of 110,900,000 barrels. In February, the greatest well in the history of this section was drilled in the famous Cushing district, producing 14,000 barrels a day. It is conservatively estimated that the Mid-Continent field alone will produce 200,000,000 barrels of petroleum in 1916, nearly twice the quantity of crude oil produced in 1915, in the same territory. The past month has been by far the busiest 30-day period of development for petroleum ever experienced in this district. Crude oil is selling for $1.55 a barrel and the demand is such that practically none of the available supply is being stored. It should be remembered that the market price of oil does not fully control, as a premium is offered by independent buyers* Ail departments of the mining industry report increased business. New mills are being rapidly erected and mining machinery is in great demand. The high prices offered have brought about greatly increased production and in the employment of many laborers. Mining towns report unusual increases in population. Prices are high and generally increasing. Lead ore has gone up to the highest price on record by $5 per ton. Colorado is sharing in the tremendous expansion, of business that is coming to the steel plants of the country. One plant at Pueblo reports the operation of 15 furnaces as against 6 at this time last year. Labor is generally employed at unusually good wages. Local labor troubles have been reported, but have, as a rule, been, of short duration. There is a good demand for farm workers at satisfactory wages, and a steady APRIL 1,1916. call for skilled and unskilled labor has existed since the first of the year. The statistics of the showing made by the banks of the district in the call of March 7 have not yet been completely compiled, but the statements of the banks in the larger centers, such as Kansas City, Lincoln, Omaha, Denver, St. Joseph, Wichita, and Oklahoma City? indicate that total deposits when compiled will exceed all records of the district. Clearing house reports in all of these cities show a large percentage of increase and indicate that the activity in. business is general and everything indicates a continuation of recordbreaking activity for some time to come, since in addition to the abnormal deposits in banks, the amount of grain, live stock, and other products still in the farmers7 hands is unusually large, and the greater part of it will come to market during the spring and summer months, provided crop prospects are satisfactory. DISTRICT NO. 11—DALLAS. Drought has interfered with spring planting and is causing considerable apprehension. All parts of the district report that rain is badly needed, and the ranges in some localities are getting short. Despite the dry weather, however, the usual spring plowing has gone forward, and a large acreage in spring oats has been planted. With a seasonal rainfall the crop should do well. Corn also has been pretty generally planted, although it is reported that in some sections there will be a decreased acreage on account of the drought. An important feature agriculturally is the production of peanuts. Last year in the central part of Texas there was quite a large acreage planted in peanuts, and this year, on account of the winterkilling of wheat, much of the land vacated will be so planted. The industry is rapidly growing. There is a good market for the product among cotton oil mills. It is difficult to say just what percentage of the cotton crop is still unmarketed. Some APRIL 1, 1916. FEDEBAL BESERVE BULLETIN. authorities consulted estimate that 15 to 20 per cent of the staple is held throughout the district. As previously reported, while there has been a general campaign to reduce the cotton acreage this year, a conservative estimate, from present indications, would be that the acreage will be increased 15 per cent. The past 30 days has brought a large movement of vegetables from south Texas. Demand is very good, at fair prices. The production is about the average. The banks of the district for the most part are in a very healthy condition, as disclosed by the comptroller's call of March 7. This regardless of the fact that, in Texas partic_ ularly, approximately $7,000,000 in tax funds were transferred to the State treasurer at Austin. This transfer had to be made prior to March 1, and this bank materially assisted by making shipments of currency of approximately $2,000,000 to Austin banks for credit of their correspondents throughout the State. Rates are still eas}^ and banks are experiencing only moderate demands for loans. The loans of this bank are about the same as a month ago, and no material change is noted in the character of offerings. Live-stock paper, in large amounts, continues to be freely offered. The banks have not yet commenced their seasonal demands for the movement of spring crops, and with weather conditions materially affecting the production it will be sometime yet before there will be any material change in this respect. Manufacturers throughout the district report an excellent business and anticipate a continuation of good spring orders. Jobbers likewise are enjoying a good trade, which is reflected materially in the volume of orders reported by their traveling salesmen. Lumber mills are running continuously, and are finding it difficult to supply the demand. Not since 1906 has this industry been in such a satisfactory condition, and there is no indication of any change in the near future. Oil refineries are running on full time, and the product finds a ready market at excellent prices. 187 With new fields being opened this development is bringing outside capital to this section. Railroads report a 20 per cent increase in freight traffic over the same period a year ago. Congestion of freight in the North and East has caused a general shortage of cars in this section, and shippers are experiencing difficulty ip. getting sufficient equipment for their needs. Building operations and improvements show a substantial increase; every section of the district reports much work underway. There is a good demand for all classes of labor at fair wages, DISTRICT; NO. ,12—SAN FRANCISCO. Agricultural prospects are quite generally favorable throughout the seven States of this district because of unusual precipitation during December, January and February. Dry farming, important in some sections, will especially benefit. Grain acreage will be reduced perhaps 25 per cent, as a dry fall season followed by continuous wet weather interfered with plowing. In the Northwest two successive grain crops have compelled summer fallowing of considerable areas. It is reported that near Spokane wheat farmers have unprecedented accumulations of funds from two profitable years. Sugar producers, both in this district and in Hawaii, have prospered greatly. A large increase is reported in acreage of sugar beets. Growers of citrus fruits have had a reasonably satisfactory year. There is a large annual increase of producing acreage from new trees coming into bearing. Live-stock interests are especially prosperous. Wool is being contracted for at from 27 cents upward, and sheep are commanding exceptional prices. One report states that there is good profit in wool at 15 cents, with lamb and mutton at 60 per cent of present prices. Southern Idaho is said to have rereived $1,000,000 for horses sold for war use. Mining is exceedingly active, with unexampled output and prices for both copper and other minerals. 188 FEDERAL RESERVE BULLETIN. Petroleum industry is at a high tide of prosperity. In California February consumption exceeded production by about 1,000,000 barrels in spite of considerable new production. Many new wells are drilling under stimulus of advancing prices. Exports and imports are at record totals in spite of acute shortage of ships. Considerable war material goes to Russia via Seattle. The reopening of the Panama Canal, reported for April 15, will be especially important for this coast. Since the establishment of the Federal Reserve System, national bank capitalization, then $129,585,000 in this district, has increased APRIL 1, 1916. by new organizations $740,500, and by conversions of State banks $684,500, and decreased by conversions into or consolidations with State banks $435,000, making a net increase of $990,000. February bank clearings in 17 principal cities of this district show a gain of 20 per cent over the preceding year, and building permits a gain of 25 per cent. National banks of San Francisco on March 7, 1916, show an increase of $36,000,000, approximately 23 per cent, in deposits, and only $500,000 in loans, compared with the corresponding time last year. Credit conditions are easy throughout the district. APRIL 1,1916. FEDERAL BESEKVE BULLETIN. 189 DISTRIBUTION OF DISCOUNTS BY SIZES and about $1,800 for the last quarter in 1915. For the more active southern banks these averAND MATURITIES. ages were: Richmond, $1,517; Atlanta, includThe total discounts of commercial paper ing the New Orleans branch, $1,845; and granted by the Federal Reserve Banks during Dallas, $1,524. February, 1916, were $7,664,600, the smallest Over 32 per cent of the entire number, and monthly total since the opening of the banks. over 52 per cent of the total amount of, bills As compared with the February, 1915, total of discounted during the month were medium$12,530,300, the February, 1916, figures show sized bills, i. e., in denominations ranging bea decrease in discount operations of almost 40 tween $1,000 and $5,000. Bills of the largest per cent. Over 79 per cent of the monthly dis- size (i. e., in denominations of over $10,000) counts are credited to the three southern banks, constituted about 11 per cent of the total disKansas City being the only other bank which counts for the month. Small bills (in amounts reports discount operations of any volume for up to $250) were over 20 per cent of the entire the month. The aggregate of discounts since number, though only slightly over 2 per cent the beginning of the year, $18,779,500, is about of the total amount of the paper discounted 19 per cent below the corresponding total for during the month. The three southern banks 1915. handled 860 such bills out of a total of 1,099, Commodity paper, practically all secured by Richmond alone reporting 376 and Atlanta 249 cotton, was handled by five reserve banks and of the total number. aggregated $1,794,700, constituting 23.4 of all Less than 1 per cent of the paper discounted paper discounted during the month, compared during February was 10-day paper; 13.6 per with 16.8 per cent for January, 1916, and 16.3 cent, 30-day; 33.4 per cent, 60-day; and 39.1 per cent for the last four months in 1915 during per cent, 90-day paper. Over 1 million, or 13.1 which this class of paper was handled. Of the per cent of the total discounts, was agricultural total February discounts reported by the Rich- and live-stock paper maturing after 90 days at mond bank commodity paper was about 37 per the time of rediscount. Of this class of paper, cent, while of the month's discounts reported the Dallas bank handled more than one-half by the Atlanta bank and its New Orleans and Kansas City nearly 20 per cent. branch this class of paper constituted almost The number of member banks accommodated 39 per cent. during the month through the discount of paper Trade acceptances discounted during the was 451, the smallest monthly total since Janmonth by five banks totaled $246,100, as uary, 1915, and was only about 5.6 per cent of against $444,400 for January. Over 94 per the entire number of member banks shown at cent of this class of paper was handled by the the end of the month. Almost two-thirds of Richmond and Atlanta banks, including the the rediscounting banks are located within the latter's New Orleans branch. The total just three southern reserve districts. Member given is exclusive of $522,000 of trade accept- banks in Texas obtained about 1.4 million ances based upon foreign commerce transac- dollars of rediscounts, banks in South Carolina tions and purchased during the month by the 1.2 millions, and banks in North Carolina less three eastern seaboard and the San Francisco than 0.9 million. Member banks in Georgia, banks. Virginia, and Alabama obtained accommodaThe total number of bills discounted durijng tion of about 1.8 millions. The combined the month was 5,086, or almost 20 per cent less share of rediscounts secured by banks in the than the January total. The average size!of six States named is about 70 per cent of the the paper discounted during the month was total discounts reported to the Board for the about $1,507, compared with $1,753 in January month. 190 FEDERAL RESERVE BULLETIN. APRIL 1,1916. Commercial paper, exclusive of bankers' acceptances, discounted by each of the Federal Reserve Banks during the month of February, 1916, distributed by sizes. NUMBER OF PIECES AND AMOUNTS. [In thousands of dollars.] $100 Over $250 Over $500 Over $1,000 Over $2,500 Over $5,000 Over To $100. Over to $5,000. to $10,000. $10,000. to $250. to $1,000. to $2,500. to $500. Total. Per cent. Bank. Boston New York Philadelphia Cleveland Richmond Atlanta (including New Orleans branch) Chicago. St. Louis Minneapolis Kansas City Dallas. San Francisco 37 286 52.5 159 21 12 20 56 181 304 24.2 Total. 1.6 1.3 6ll 25.8 3.8 1.7 3.2 10.4 31.2 1.8 6.4 6.5 14.9 5.6 435172.9 122 50 24 18 94 165 20 46.7 19.8 9.3 6. 34.0 63.5 10 15 10.5 24 19.0 15 11; 1 428 331.5 154 124.1 83 66.5 31 24.5 21 15.4 66 45. 207 151.4 24 13.6 795139.411,015 393.11,078 n.i 37.7 32.9 2.2 680.9 32.0 17.2 29.0 15.0 924.4 514.7 167 73 124.7 42 71.0 27 39.8 . 72 109. 194 326.2 31 42.6 448.0 116.4 60.6 26.5 89.8 430.6 40.0 6.5! 33.9 5.1 114.9 368.3 29.2 7 25 20 2 400 30.8 15.0 52 114.5 1.0 1.5 73 1.4 1.3 155 109.2 3.0 1.4 35 33.9 .7i .4 290.6 1,9612,975.0 38.6 38.8 24.0 10.0 5.4 822.01,0601,777.5 5812,229.5 2031,440.8 52.2 115. 12.9 8671.,599.9 17.0 20.9 272 338.7 5.4 4.4 138 201.5 2.7 2.6 96.6 1.9 1.3 354 458.5 7.0 6.0 978 ,491.1 19.2 19.5 105 147.4 2.1 1.9 50 838.1 7,664.6100.0100.0 320.8 PERCENTAGES OF AMOUNTS OF EACH CLASS TO TOTAL. To $100. Bank. Boston. .... New York ... Philadelphia Cleveland Richmond Atlanta (including New Orleans branch) Chicago St. Louis Minneapolis Kansas City Dallas .. San Francisco Total. . . . . . .:. • 1.4 1.3 Over $250 to • $500. Over $500 to $1,000. 2 'A .3 ;3 1.8 1.6 1.1 .'8 5.6 6.6 13.6 16.5 5.8 2.9 5.9 4.6 .3 .3 •3 2.3 2.1 1.2 7.4 4.2 4.7 7.5 10.7 17.4 32.7 11.1 7.8 19.6 12.2 16 0 10.0 10.1 9.2 .3 1.8 5.1 10.7 0.1 1 7 . . Over $100 to $250. 5.6 6.8 Over $1,000 to $2,500. Over $2,500 to $5,000. Over $5,000 to $10,000. Over $10,000. 9.7 38.3 30 1 6.5 22.9 18.7 36.8 35.2 41.2 23.9 21.9 28.9 27.9 17.5 26 6 44.3 31.1 28.0 34.4 30.1 27.4 19.6 28.9 27.1 21.0 10.2 50 26.9 15.3 i7.3 9.8 20.0 23.2 29.1 18.8 20.6 1.9 16.8 5 3 25.1 24.7 19.8 ii.4 7..8 8.8 11.0 Total. . 100.0 100.0 100 0 100.0 100.0 100.0 100.0 100.0 100 0 100.0 100.0 100.0 100.0 APRIL 1,1916. 191 FEDERAL RESERVE BULLETIN. Commercial paper, exclusive of banhers' acceptances, discounted during February by each of the Federal Reserve Banks, distributed by States and maturities as of date of discount. [In thousands of dollars.] Number Number of banks of member accommobanks. dated. Districts and States. District No. 1—Boston: Connecticut Maine Massachusetts New Hampshire Rhode Island Vermont 73 70 168 co oo oo Total District No. 2—New York: New Jersey New York . Total District No. 3—Philadelphia: New Jersey Pennsylvania... Total District No. 4.—Cleveland: Ohio Ppnnsvlvania West Virginia . Total _.... District No. 5.—Richmond: District of Columbia Maryland North Carolina South Carolina Virginia West Virginia Total ...... ... District No. 6—Atlanta: Alabama Florida Georgia MississiDDi Tennessee Total District No. 7—Chicago: Illinois Indiana Iowa Michigan •' ,.... District No. 8—St. Louis: Arkansas Illinois ••-••- Indiana TCfyntnokv MississiDDi Missouri TpTinpsspe District No. 9—Minneapolis: Montana "NFnrfh Dalrnta Smith T)a1cota Wisconsin Total - - -. - Paper maturing after 60 days but within 90 days. Paper Total maturing commerafter 90 cial paper days. discounted. 9.8 11.9 0.9 5.0 3.2 22.6 78.8 4.0 8.3 4.9 114.5 4.1 73.8 1.1 4.8 2.0 433 6 2.8 86.7 20.1 132 481 1 6 6.4 6.2 47.2 31.0 13.9 84.4 613 7 12.6 50.6 35.1 98.3 36.9 8.2 45.1 7.8 20.1 29.9 10.0 8.9 18.9 3.5 7.0 2.4 24 1 70 534 2 7 11.2 .4 628 10 11.6 72 375 299 14 1 4 1 .6 .8 760 6 1.4 14 97 79 73 138 104 1 10 25 39 27 5 9.0 27.1 505 107 30.4 95 55 113 5 18 95 21 7 31 1 1 18 2.9 381 79 317 196 348 3.4 2.0 2.0 3.7 65.9 41.3 3.7 109.2 9.6 2.2 7.8 25.2 12.9 11.8 7.8 129.8 236.7 71.5 11.1 48.4 321.7 521.1 284.0 11.8 77.2 89.2 381.9 463.2 227.3 31.4 22.0 458.1 1,187.0 1,270.2 29.3 2,975.0 21.2 31.6 49. 7 55.0 254.6 30.6 325.2 33.6 29.2 156.0 33.3 372.7 25.0 14.1 41.8 77.8 3.1 465.4 95.5 783.0 80.0 21.2 154.8 6.9 193.8 642.9 688.2 68.1 1,599.9 7 6 20 9.6 2.4 23.5 33.2 72.1 32.2 11.2 48.5 26.2 11.0 53.1 91.5 29.3 217.9 989 33 11.0 45.2 104.8 .91.9 85.8 338.7 64 157 61 2 6 2 3 1.9 9.3 18.8 33.7 25.9 38.7 3.3 4.0 7.1 9.2 4.1 3.3 6.4 12.6 11.5 3.4 22.5 16.5 22.2 1.0 .6.5 4.6 .5 .7 6.1 31.4 6.5 33.9 77.2 147.1 861.2 1,246.3 588.9 54.3 81 20 7 2 1.4 4.2 32.8 29.4 2.0 12.0 75.6 2.6 469 22 16.5 84.1 77.7 23.2 201. 5 1.8 .6 .3 5.8 13.9 37.0 68 154 121 88 11 4 1 2 1 7.7 .1 9.8 4.6 7.7 53.0 21.8 1.5 17.1 742 19 2.4 36.1 46.2 31 280 ». Paper maturing after 30 days but within 60 days. 2.8 69 17 Total 2 1 2 Paper maturing after 10 days but within 30 days. 1 77 51 Total Paper maturing within 10 days. 8.8 1 5.8 11.9 .1 4.6 96.6 192 FEDERAL RESERVE BULLETIN. APRIL 1,1916. Commercial paper, exclusive of bankers' acceptances, discounted during February by each of the Federal Reserve Banks, distributed by States and maturities as of date of discount—Continued. [In thousands of dollars.] Number , Number of banks of member accommobanks. dated. Districts and States. District No. 10—Kansas City: Colorado Oklahoma Wyoming 119 219 53 208 9 304 33 Total 945 Kansas Missouri.. Nebraska New Mexico District No. 11—Dallas: Arizona Louisiana New Mexico . , . . . Oklahoma Texas Total District No. 12—San Francisco: Alaska Arizona California Idaho .. . . Nevada Oregon Utah Washington Total Paper maturing within 10 days. 3 7 3 6 .7 18 .7 37 Paper maturing after 10 days but within 30 days. Paper maturing after 30 days but within 60 days. Paper maturing after 60 days b u t within 90 days. 2.1 8.0 1.3 30.4 10.2 15.4 10.7 34.5 26.8 17.9 33.6 .5 50.1 43.4 16.1 67.5 95.1 78.7 60.4 14.3 36.1 26.7 79.7 156.8 25.7 102.8 139.5 189.8 458.5. Paper Total maturing commerafter 90 cial paper days. discounted. 6 27 2 .4 28 42 546 4 9 86 1.3 2.5 123.1 13.3 18.2 7.8 245.2 15.1 20.3 521.3 18.7 31.1 468.0 18 5* 53.$ 61.7 1,357.6* 649 101 127.3 284.5 561.5 517.8 1,491.1 25.2 24.3 .4 32.6 3.6 31.9 1.4 114.6 5.4 4.8 1 . . 7 266 58 10 86 i7 .6 2 1 529 24 .6 25 S 1.9 23 4 .3 .3 .4 1.1 2.1 25.5 26.9 60.0 34.4 147.4 4 23 78 RECAPITULATION. [In thousands of dollars.] Districts and cities. No. 1—Boston No 2—New York No. 3—Philadelphia jsfo. 4-—Cleveland No. 5—Richmond No. 6—Atlanta No. 7—Chicago No. 8—^5t. Louis No 9—-Minneapolis No. 10—Kansas City No 11—Dallas No. 12—San Francisco Total for February Per cent. Total for Jan.-Feb., 1916 Total for Jan - F e b 1915 Paper maturing after 10 days b u t within 30 days. Paper maturing after 30 days b u t within 60 days. Paper maturing after 60 days b u t within 90 days. 86.7 12.6 45.1 1.4 458.1 193,8 45.2 16 5 2.4 25.7 127.3 25.5 20.1 50.6 29.9 12.9 1,187.0 642.9 104.8 84.1 11.9 102.8 284.5 26.9 35.1 18.9 11.8 1,270.2 688.2 91.9 77.7 36.1 139.5 561.5 60.0 3.7 7.8 29.3 68.1 85.8 23.2 46.2 189.8 517.8 34.4 114.5 98.3 109.2 33.9 2,975.0 1,599.9 338.7 201.5 96.6 458.5 1,491.1 147.4 64.0 1,040.3 13.6 .8 2,895.7 327.3 7,066.8 2,558.4 33.4 5,917.6 9,048.7 2,995.8 39.1 7,117.4 5,631.0 1,006.1 13.1 2,521.5 1,496.6 7,664.6 100.0 18,779.5 23,243.1 Total Paper of number of Number banks maturing member accommowithin 10 banks dated. days. reported. 433 6 613 628 760 505 381 989 469 742 945 649 529 7 10 6 107 79 33 22 19 37 101 24 8,094 451 5.6 2.8 11.6 30.4 6.9 11.0 .7 .6 Paper maturing after 90 days. 4.9 Total • commercial paper Per cent. discounted. 1.5 1.3 1.4 .4 38. S 20.9 4.4 2.6 1.3 6.0 19.5 1.9 100.0 193 FEDERAL RESERVE BULLETIN. APRIL 1, 1916. Trade acceptances discounted by each Federal Reserve Bank fromSept. 2, date of first discount, to Dec. SI, 1915, and for the months of January and February, 1916. Total to Dec. 31, 1915. Federal Reserve Bank. New York . Cleveland Richmond Atlanta (including New Orleans branch). Chicago.... .St. Louis Kansas City Dallas San Francisco January, 1916. February, 1916. Total JanuaryFebruary. 1916. $5, 450, 1,007, Total. 1 167,800 87, 160, 74, $137,300 202,000 8,200 32,600 47,300 11,700 5,300 1,958,800 444,400 $700 135,800 95,500 3,500 *i6,'666' » 246,100 $700 273,100 297,500 8,200 36,100 4/, 300 22,300 5,300 690,500 Included in total of commercial paper shown above. Commodity paper discounted by each Federal Reserve Bank from Sept. 8, date of first discount, to Dec. 81, 1915, and for the months of January and February, 1916. Total to Dec. 31, 1915. Federal Reserve^Bank. Richmond Atlanta (including New Orleans branch) St Louis Minneapolis . Dallas San Francisco . . . . ... . February, 1916. $2,881,400 $1,010,600 $1,092,200 7,032,300 745,800 622,700 99,800 . 1,300 9,100 25,300 81,900 239,100 57,600 24,000 37,200 13,100 Total 10,315,100 1 January, 1916. 1,863,600 11,794,700 Total, JanuaryFebruary, 1916. $2,102,800 1,368,500 10,400 139,500 37,100 3,658,300 Included in total of commercial paper shown above. Commodity paper * discounted by each Federal Reserve Bank during January and February, 1916, distributed by classes. Atlanta Richmond. (including New Orleans). Class. Cotton Peanuts Wheat Maize . Flax Hops . Miscellaneous . $2,090,317 12 400 . Minneapolis. $1,367,465 Dallas. $132,578 $8,822 . 1,040 2,102,717 Total 1,368,505 10,427 $256 139,522 Total. 12,848 24,003 $3,590,616 12,400 8,822 6,944 1,605 12,848 25,043 37,107 3,658,278 6,944 1,605 ./ San Francisco. i Included in total of commercial paper shown above. Amounts of commercial paper, exclusive of bankers1 acceptances, held by each Federal Reserve Bank on Feb. 25, 1916. Federal Reserve Bank. Paper maturing within 10 days. Paper maturing after 10 days but within 30 days. Paper maturing after 30 days but within 60 days. Paper maturing after 60 days but within 90 days. Boston New York Philadelphia Cleveland Richmond Atlanta, including New Orleans branch Chicago : St. Louis Minneapolis'. Kansas City Dallas San Francisco $68,000 36,800 50,400 79,000 1,349,100 774,800 450,500 203,200 149,200 257,000 537,700 88,700 $83,300 44,300 49,300 47,700 762,300 004,400 397,100 153,100 72,100 463,100 730,800 76,300 $26,500 76,200 68,200 57,900 2,501.500 1,617,400 521,700 254,500 229,400 599,200 1,339,500 132,800 $5,200 10,400 23,100 16,200 948,500 900,700 343,300 120,200 271,300 384,700 1,135,700 42,800 Total Per cent 4,044,400 4,883,800 21.4 7,424,800 32.5 4,202,100 18.4 Paper maturing after 90 days. Total. Per cent. $183,000 167,700 198,900 216,900 6,639,500 4,481,700 1,984,400 802,500 914,700 2,069,500 4,741,200 420,600 0.8 .7 .9 1.0 29.1 19.6 8.7 3.5 4.0 9.1 20.8 1.8 2,265,500 22,820,600 100.0 10.0 100.0 $7,900 16,100 78,100 184,400 271,800 71,500 192,700 365,500 997,500 80,000 194 FEDERAL RESERVE BULLETIN. APKIL 1,1916. ACCEPTANCES. Acceptances held by Federal Reserve Banks on dates specified as per schedules on file—Total bankers' acceptances by classes [In thousands of dollars.] Nonmember banks. Nonmember banks. Date. Member banks. 1915. Feb. 22 Apr. 5 May3... June 7 . July3 Aug. 2 Sept. 6 . . . •...-. Oct. 4 Nov. 1 Dec. 6.. 3,653 5,038 5,242 4,342 5,350 6,087 9,000 8,477 12,311 Total. Trust State Private compa- banks. banks. nies. 20 20 132 253 275 110 110 192 161 352 472 343 204 93 11,593 13,347 9,960 9,770 11,129 12,884 14,373 13,265 18,154 Member banks. Date. 1916. Jan. 3 Jan. 10 Jan. 17 Jan. 24 Jan. 31 Feb.7 Feb. 1 4 . . . . . . . . Feb. 21 Feb. 28 Mar. 6 . . . Mar. 13 Mar. 20 Total. Trust State Private compa- banks. banks. nies. 15,494 16,492 16,908 16,348 15,834 15,681 17,581 17,661 17,436 17,182 20,323 20,563 362 370 425 363 356 336 347 392 408 408 470 408 7,160 8,057 7,655 8,070 8,174 7,876 7,985 8,194 8,755 8,670 10,032 11,280 822 938 1,010 1,441 1,510 1,456 1,851 1,841 1,841 1,781 1,631 2,467 23,838 25,857 25,998 26,222 25,874 25,349 27,764 28,088 28,440 28,041 32,456 1 34,718 i Acceptances indorsed by member banks: State banks, $9,000; private banks, $1,073,000; total, $1,082,000. Amounts of acceptances field by the several Federal Reserve Banks at close of business on Fridays, Mar. 3 to Mar. T7,1916. [In thousands of dollars.] Acceptances maturing— Within 10 days: Mar 3 Mar 10 Mar 17 From 11 to 30 days: Mar 3 Mar 10 Mar 17 From 31 to 60 days: Mar. 3 . Mar 10 Mar 17 From 61 days to 3 months: Mar 3 Mar 10 Mar 17 Total acceptances held: Mar. 3 Mar 10 p. Mar 17 Boston. New York. Philadelphia. Cleve- Rich- At- Chicago. St. Minne- Kansas land. mond. lanta. Louis. apolis. City. San Total Dal- Franfor las. cisco. system. 38 306 479 350 122 145 80 84 69 54 80 101 42 215 157 106 4,258 4,517 4,376 8 7 7 550 472 325 186 232 300 172 206 183 123 92 111 227 225 218 8,072 7 274 6,538 322 231 470 250 250 250 635 392 660 414 245 153 143 9,4 225 184 148 253 268 178 573 10,126 10,638 12,729 387 1,629 1,813 308 389 146 65 165 305 445 790 460 39 144 126 159 148 153 135 165 . . . 177 443 464 90 8,327 10,520 12,448 1,869 3,706 4,043 1,033 1,007 923 361 422 562 1,936 2,133 1,795 761 766 659 558 517 615 522 506 583 1,153 1,024 987 30,783 32,949 36,091 1,063 876 328 1,768 2,130 2,811 403 271 455 179 179 140 110 10 1,300 1 134 1,469 4,392 3 748 3,042 714 884 650 224 208 167 176 66 66 3,827 4,086 4,667 3,718 4,092 4,353 365 922 1,125 2,644 3 234 4,827 3,702 3 392 4,351 8,834 9,330 11,291 13,580 13,362 14,557 176 176 76 .' ! 195 FEDERAL RESERVE BULLETIN. APRIL 1,1916. Amounts of acceptances (in the foreign and domestic trades) purchased by each Federal Reserve Bank during the calendar year 1915, and for the months of January and February, 1916, distributed by maturities. [In thousands of dollars.] Acceptances maturing— Boston. Within 30 days: Calendar year 1915 January, 1916 February, 1916 Total After 30 but within 60 days: Calendar year 1915 January, 1916 February, 1916 Total After 60 days but within 3 months: Calendar year 1915 January, 1916 . February, 1916 Total Total acceptances bought: Calendar year 1915 January, 1916 . February, 1916 Total. New York. Philadelphia. Cleve- Richland. mond. 497 48 1,246 587 909 277 101 64 50 41 545 2,742 972 215 41 2,137 102 41 2,377 621 313 1,464 43 36 2,280 3,311 11,471 2,681 3,686 695 Atlanta. Chicago. 156 7 San St. Minne- Kansas Dallas. FranLouis. apolis. City. cisco. 103 45 20 1 69 9 Total. 50 61 6 125 2,980 734 1,453 50 192 5,167 7 156 103 66 78 746 42 30 19 816 279 116 374 43 50 191 6 33 183 55 22 750 13 13 9,057 1,204 654 1,543 818 19 1,211 467 230 260 776 10,915 22,211 2,686 4,157 5,406 151 396 2,116 267 395 250 46 300 65 4,810 489 656 1,324 357 143 1,219 200 194 1,536 151 197 2,419 304 420 52,808 7,586 10,309 17,838 29,054 5,953 2,778 250 411 5,955 1,824 1,613 1,884 3,143 70,703 14,105 2,831 3,727 25,834 3,894 5,379 7,565" 194 709 2,963 373 475 250 41 72 300 65 5,782 768 772 1,801 400 193 1,455 226 228 1,788 215 219 50 3,230 323 558 64,845 9,524 12,416 20,663 35,107 8,468 3,811 291 437 7,322 2,394 1,909 2,222 50 4, 111 86,785 Distribution of bills bought in open market by all Federal Reserve Banks during the month of February, 1916, by classes of acceptors and sizes. To $5,000. Over $5,000 to 110,000. Over $10,000 to $25,000. Over $25,000 to $50,000. Over $50,000 Over $100,000. to $100,000. Total. Acceptances by classes. £2 O si jap Member b a n k s . . . Trust companies. State banks Private banks 253,857 367,002 57,500 41,051 Total bankers' acceptances i Trade acceptances 2 . 719,410 70,265 Total bills bought in open market 267 768,596 692,810 1,890,596 1,290,039 67,500 177,109 1,143,135 337,465 208,900 152,208 1,120,305 189 3,425,244 123,082 187,684 1,689,500 141,351 1,613,614 3,548,326 1,830,851 21 1,613,614 28.6 4,113,726 7,662,052 14.7 1,857,477 3,688,328 13.0 1,284,593 2,898,207 418,132 9,271 59,964 789,675 159 1,307,989 Per cent 6.4 Total for January, 1916. 546,959 Total for Jan.-Feb., 1916 461 1,336,634 a-g ! 10.5 1,720,758 3,028,747 10 6,791,352 4,329,593 134,271 639,232 54.7 34.9 1.1 5.1 3,326,375 651 11,894,448 522,382 56 95.8 4.2 3,326,375 707 12,416,830 100.0 10 2,102,230 1,224,145 322 270 21 38 100.000 9,523,513 15 3,326,* 375' 1,402 21,940,343 26.8 1 Of the above total of bankers' acceptances $11,769,448 are based on imports or exports and $125,000 on domestic trade transactions. 2 Practically all drawn abroad on importers in the united States and indorsed by foreign bankers. 196 FEDEKAL BESERVE BULLETIN. APRIL 1,1916. Total investment operations of each Federal Reserve Bank during the months of January and February, 1916 and 1915. [In thousands of dollars,] Bills bought in open market. Discounts for Bank- Trade member ers' ac- accept- Total. banks. ceptances. ances. City. All State. other. Boston: January 131.1 February... 114.5 New York: January.... 125.6 February... 98.3 Philadelphia: January 242.8 February... 109.2 Cleveland: January 127.9 February... 33.9 Richmond: January 3,417.1 February... 2,975.0 Atlanta: J a n u a r y . . . . 1,944.0 February... 1,599.9 Chicago: January 973.5 February... 338.7 St. Louis: January 583.7 February... 201.5 Minneapolis: January 189.0 February... 96.6 Kansas City: January 1,364.6 February... 458.5 Dallas: January 1,845.5 February... 1,491.1 San Francisco: January 170.1 February... 147.4 Total investments: J a n u a r y , . . . 11,114.9 February... 7,664,6 323 433 125 323 558 156.5 1,114.3 20.4 3.7 9,375 11,894 149 522 9,524 12,416 9,507.8 10,393.3 236.0 20.4 Total for January-February 1 9 1 6 . . . . . . . . . . 18,779.5 21,269 671 21,940 19,901.1 256.4 2,732 3,724 99 3 2,831 3,727 249.0 546.5 3,894 5,036 343 3,894 5,379 6,148.6 4,964.8 194 658 51 194 709 1,576.0 628.6 373 475 373 475 356.8 708.1 41 41 250 65 50 200.0 '"%Q 10.5 Total. 2 per cent. 3 per cent. 1916 1915 681.8 799.6 6,148.6 4,964.8 10,168.2 10,442.1 6,903.6 4,748.1 1,000.0 500.0 3,012.8 1,948.8 1,802.9 915.9 525.0 819.0 1,400.5 2,036.5 1,004.0 906.5 1,320,0 1,320.0 3,494.7 4,341.0 2,802.5 3,695.7 25.0 151.0 25.0 151.0 2,269.0 1,815.9 2,677.5 2,944.8 1,613.0 488.0 3,838.2 2,905.0 3,131.8 2,078.5 799.0 1,570.0 1,903.8 2,436.0 613.9 394.0 853.4 1,091.2 527.6 892.2 532.8 479.3 1,576.0 630.6 374.6 708.6 5.0 77.6 5.0 1,000.0 500.0 195.0 258.0 768 772 ' 7(58 772 403.0 1,306.3 400 193 400 193 121.1 471.5 121.1 471.5 799.0 540.0 1,030.0 226 228 215 219 226 228 215 219 293.4 364.1 293.4 364.1 50.0 125.0 95.0 231.5 125.8 289.1 125,. 8 69.8 289.1 4,164.25 50 50 55.2 Total. 3,411.1 4,388.0 300 65 25.5 4 per cent. 449.0 546.5 7.3 .5 77.6 Total invest-. ment operations. United States bonds. Municipal warrants. 483.7 1,306.3 330.0 561.0 113.0 1,500.0 268.0 220.0 46.0 145.00 402.5 100.0 69.8 4,264.25 1,775.2 5,230.85 425:0 425.0 2,270.5 1,541.1 936.5 1,729.3 156.5 1,138.4 2,025.0 2,025.0 2,674.6 1,843,8 1,835.4 761.9 62.5 11.2 9,806.3 10,424.9 4,393,80 6,799.75 403.0 1,830.0 6,626.8 37,072.0 23,450.3 1,739.5 975.0 9,514.75 40,020.25 20,345.8 73.7 20,231.2 11,193.55 2,142.5 2,805.0 16,141.55 77,092.25 43,796.1 APRIL 1 , 1 9 1 6 . 197 FEDERAL KESERVE BULLETIN. FEDERAL RESERVE BANK STATEMENTS. Resources and liabilities of each of the Federal Reserve Banks and of the Federal Reserve System at close of business on Fridays, Mar. S to Mar. 24, 1916. BESOUKCES. [In thousands of dollars.] Boston. Gold coin and certificates in vault: Mar. 3 Mar. 10 Mar. 1 7 . . . . . . Mar.24... Gold settlement fund: Mar. 3. Mar. 10 Mar. 17 Mar.24 Gold redemption fund: Mar.3 Mar. 10 Mar. 17 Mar.24 Legal-tender notes, silver, etc.: Mar.3 Mar. 10 Mar. 17 Mar.24 Total reserve: Mar.3 Mar. 10 Mar. 17 Mar.24 Bills discounted—Members: Mar.3 Mar. 10 Mar. 17 Mar.24 Bills bought in open market: Mar.3 Mar.10. Mar.17 Mar.24 United States bonds: Mar.3 Mar.10 Mar.17 Mar.24 Municipal warrants: Mar.3 Mar.10 Mar.17 Mar.24 Federal Reserve notes, Mar.3 Mar.10 Mar.17 Mar.24... Due from other Federal Reserve Banks, net: Mar.3 Mar.10 Mar.17., Mar.24 All other resources: Mar.3 Mar.10 Mar.17. Mar.24 Total resources: Mar.3 Mar.10 Mar.17 Mar.24 1 New York. Philadelphia. Cleve- Richland. mond. Atlanta. San St. Minne- Kansas Dallas. FranChicago. Louis. apolis. City. cisco. Total for system. 12,905 12,938 12,280 10,844 159,536 156,971 155,099 162,239 6,873 7,163 6,210 11,452 11,505 11,471 11,538 4,723 4,700 4,726 4,754 5,607 5,591 5,640 5,708 36,303 36,574 34,478 3.6,431 5,223 5,287 5,157 5,077 3,372 3,410 3,421 3,589 4,676 4,753 4,759 4,718 4,046 4,059 4,072 4,037 6,115 5,214 5,614 5,721 261,822 257,875 253,880 3,389 3,325 4,841 3,443 9,738 5,790 7,771 10,587 10,695 10,050 7,324 6,440 10,037 10,140 10,166 9,975 10,886 10,421 11,013 12,012 6,132 6,338 5,611 5,177 4,577 6,702 5,674 6,519 987 3,749 3,834 2,647 4,238 4,368 4,368 4,598 3,765 9,092 3,424 10,013 3,666 10,325 3,878 10,036 1,354 4,850 4,377 4,368 74,890 79,170 78,970 79,680 3 3 5 250 250 250 250 50 50 50 50 303 280 315 338 354 325 353 338 200 200 200 200 23 5 85 54 30 30 30 30 92 88 81 74 223 213 204 192 10 10 10 10 1,538 1,494 1,623 1,578 73 41 74 53 4,318 10,570 2,518 3,382 4,167 4,084 3,408 3,281 1,316 1,250 1,165 1,158 129 119 118 128 180 163 231 283 701 1,446 1,409 1,735 809 800 716 455 470 472 474 152 153 160 159 913 943 845 16,370 16,307 17,200 14,345 173,842 173,581 165,638 176,458 22,776 21,057 17,945 15,981 22,805 22,935 22,842 22,708 16,041 15,520 16,172 17,232 12,273 12,417 11,835 11,506 41,781 44,922 41,761 44,885 6,925 9,850 9,876 8,494 8,095 8,278 8,291 140 150 122 256 291 295 307 211 235 245 279 170 140 323 323 6,316 6,393 6,390 6,262 4,260 4,118 4,036 3,953 1,791 1,682 1,606 1,598 728 653 683 650 853 841 791 776 1,967 1,937 1,943 2,010 8,834 9,330 11,291 12,236 13,580 13,362 14,557 14,725 1,869 3,706 4,043 5,141 1,033 1,007 924 1,025 176 176 76 361 422 562 573 1,936 2,133 1,795 2,165 761 766 659 843 558 517 615 675 522 506 583 687 2,670 3,152 3,490 3,490 4,206 4,206 3,726 3,796 4,091 4,224 1,370 1,676 1,676 1,676 158 165 1,220 1,370 6,357 6,422 6,603 6,677 3,339 3,339 3,339 3,339 1,902 1,983 2,114 2,214 7,405 7,954 7,978 7,978 3,642 2,977 2,923 2,833 12,738 13,223 13,433 13,378 2,684 3,304 3,340 3,344 3,881 3,965 3,996 3,965 81 91 91 91 2,590 3,604 3,684 3,630 1,226 1,256 1,267 1,241 1,204 1,449 1,419 1,356 1,054 1,029 755 791 768 1,281 15,132 14,501 14,489 14,139 157 118 66 154 640 466 431 491 1,917 1,846 1,865 1,535 760 795 845 1,009 1,019 930 1,127 1,790 3,850 1,973 1,270 2,362 2,006 2,507 446 944 876 779 4,067 3,871 3,681 3,054 1,369 1,570 1,379 1,418 564 342 365 388 48 129 25 383 377 372 395 136 124 260 111 32,597 34,439 33,419 33,810 215,931 215,335 211,454 222,554 33,304 32,467 31,723 14,167 ;,418 15,198 1,666 15,544 15,110 7,484 10,092 10,007 10,108 351,244 358,575 345,777 354,347 4,542 4,614 4,700 4,536 481 475 474 514 21,715 21,529 21,608 21,306 1,153 1,024 987 1,108 30,783 32,949 36,092 39,244 3,035 3,035 3,035 3,035 33,063 34,141 39,213 40,152 1,495 1,832 1,852 1,832 30,539 32,755 33,034 32,669 5,388 5,337 5,264 5,277 25,567 24,838 24,608 24,849 1,601 2,067 1,513 721 400 216 178 751 4,768 3,390 1,458 1,764 2,376 193 118 1,035 869 1,019 1,193 373 581 406 332 2,474 1,827 1,367 1,096 130 135 119 127 284 305 291 499 33,265 25,671 18,487 33,595 26,009 18,207 33,848 26,111 18,850 33,903 26,166 19,346 65,103 65,198 65,240 65,590 19,412 19,909 19,750 17,818 18,093 17,960 18,020 21,230 21,744 21,869 22,420 8,358 4,008 7,520 18,884 12,994 20,036 11,304 12,223 1,295 1,295 1,295 1,295 1 3,961 610 1,072 1,272 20,576 112,647 1 16,248 112,628 276 247 334 176 243 260 185 5,969 5,213 5,028 4,803 21,073 21,541 21,786 21,635 23,173 22,648 22,951 23,331 519,456 522,647 521,608 529,998 821 158 Items in transit, i. e., total amounts due from less total amounts due to other Federal Reserve Banks. 198 APRIL!, 1916. FEDERAL EEBEEVE BULLETIN. Resources and liabilities of each of the Federal Reserve Banks and of the Federal Reserve System at close of business on Fridays, Mar. 3 to Mar. 24, 1916—Continued, LIABILITIES. [In thousands of dollars.] Boston. Capital paid in: Mar 3 Mar 10 Mar 17 Mar 24 Government deposits: Mar 3 Mar 10 Mar 17 Mar 24 . . . . Reserve deposits, net: Mar 3 . . . . Mar 10 . Mar 17 Mar 24 Federal Reserve notes, net liability: Mar. 3.. Mar 10 Mar 17 Mar 24 Federal Reserve bank notes in circulation: Mar. 10 Mar 17 Mar 24 Due to other Federal Reserve banks, net: Mar.3........ Mar. 10 Mar.17 Mar.24 All other liabilities: Mar.3. Mar 10 Mar. 17 Mar.24 Total liabilities: Mar 3 Mar 10 Mar 17 Mar 24 . New York. Philadelphia. Cleve- Richland. mond. Atlanta. San Minne- Kansas Dallas. FranSt. Chicago. Louis. apolis. City. cisco. Total for system. 5,159 5,158 5,158 5,158 11,107 11,122 11,122 11,122 5,256 5,256 5,256 5,215 5,945 5,947 5,948 5,948 3,337 3,345 3,345 3,345 2,417 2,416 2,416 2,416 6.653 6,655 6,655 6,654 2,785 2,785 2,788 2,788 2,555 2,558 2,560 2,560 3,005 3,008 3,008 3,009 2,753 2,750 2,738 2,751 3,947 3,944 3,943 3,944 54,919 54,944 54,937 54,910 915 288 125 1-12 10,819 7,623 8,477 9,632 350 259 160 233 767 681 740 794 6,808 6,581 6,870 7,267 6,446 6,390 6,690 7,088 733 157 939 902 1,571 1,322 1,098 1,376 477 602 604 804 5,213 5,249 5,290 5,419 1,326 782 958 1,200 36,043 30,639 32,380 35,088 26,523 28,993 26,638 28,664 186,405 189,215 189,695 194,416 27,690 27,789 27,051 26,275 26,553 11,027 26,967 11,697 27,160 11,489 27,161 11,365 8,287 8,116 8,464 8,754 57,717 58,386 57,646 58,029 15,056 15,802 15,864 14,720 618 705 429 380 14,645 14,830 14,971 15,080 16,696 16,617 16,358 16,446 10,219 9,988 9,873 9,719 17,900 17,92218,050 18,187 418,718 426,322 423,259 428,816 4,457 4 341 4,361 4,140 1,238 1 185 l'l78 983 1,052 1,098 1,218 1,108 2,888 3,554 3,446 3,746 9,635 10,178 10,203 9,977 419 681 1,053 419 681 1,053 1,408 32,597 34,439 33,419 33,810 7,600 7,375 2,160 7,384 215,931 215,335 211,454 222,554 439 42 45 46 49 99 100 102 105 33,296 33,265 25,671 33,304 33,595 26,009 32,467 33,848 26, 111 31,723 33,903 26,166 18,487 18,207 18,850 19,346 i Overdraft. 141 145 148 154 65,103 19,412 17,818 65,198 19,909 18,093 65,240 19,750 17,960 65,590 18,884 18,020 21,230 21,073 21,744 21,541 21,869 21,786 22,420 21,635 23,173 22,648 22,951 23,331 519,456 522,647 521,608 529,998 APRIL 1,1916. 199 FEDERAL RESERVE BULLETIN. Circulation of Federal Reserve notes at close of business on Fridays, Mar. 3 to Mar. M, 1916. [In thousands of dollars.] Boston. Federal Reserve notes issued to the bank: Mar.3 Mar. 10.. Mar. 17 Mar.24 Federal Reserve notes in hands of bank: Mar.3 Mar. 10... . Mar. 17 Mar.24....^ . . Federal Reserve notes in circulation: Mar.3 Mar. 10 Mar. 17..... Mar. 24 Gold and lawful money deposited with or to the credit of the Federal Reserve Agent: Mar.3 Mar. 10 Mar. 17 Mar. 24 Carried to net assets: Mar.3 Mar. 10 Mar. 17 Mar.24 Carried to net liabilities: Mar.3 Mar. 10 Mar. 17S . . . Mar.24 New York. Philadel- Cleve- Richland. mond. phia. Atlanta. San St. Minne- Kansas Dallas. FranChicago. Louis. apolis. City. cisco. Total for system. 9,380 9,364 9,696 10,472 75,897 75,707 75,471 75,238 7,672 7,483 7,463 7,322 10,286 10,792 10,755 10,725 12,395 12,223 12,142 11,907 15,461 15,402 15,053 15,020 4,191 4,186 4,179 3,824 7,714 7,702 7,681 7,666 13,200 13,200 13,200 13,072 10,190 10,167 10,192 10,109 13,847 14,540 14,427 14,700 11,070 10,912 10,906 10,848 191,303 191,678 191,165 190,903 755 791 768 1,281 15,132 14,501 14,489 14,139 157 118 66 154 640 466 431 491 613 629 609 830 1,057 1,110 837 1,032 1,917 1,846 1,865 1,535 569 760 795 845 1,009 1,019 930 1,127 153 107 12 122 111 180 232 236 5,388 5,337 5,264 5,277 27,501 26,864 26,298 27,069 8,625 8,573 8,928 9,191 60,765 61,206 60,982 61,099 7,515 7,365 7,397 7,168 9,646 10,326 10,324 10,234 11,782 11,594 11,533 11,077 14,404 14,292 14,216 13,988 2,274 2,340 2,314 2,289 7,145 6,942 6,886 6,821 12,191 12,181 12,270 11,945 10,037 10,060 10,180 9,987 13,736 14,360 14,195 14,464 5,682 5,575 5,642 5,571 163,802 164,814 164,867 163,834 9,380 9,364 9,696 10,472 75,897 75,707 75,471 75,238 7,672 7,483 7,463 7,322 10,286 10,792 10,755 10,725 7,325 13,166 7,253 13,107 7,172 • 13,038 6,937 13,005 4,191 4,186 4,179 3,824 7,714 7,702 7,681 7,666 13,200 13,200 13,200 13,072 8,985 8,962 8,962 8,879 10,848 10,806 10,749 10,718 11,070 10,912 10,906 10,848 179,734 179,474 179,272 178,706 755 791 768 1,281 15,132 14,501 14,489 14,139 157 118 66 154 640 466 431 491 1,917 1,846 1,865 1,535 569 760 795 845 1,009 1,019 930 1,127 5,388 5,337 5,264 5,277 25,567 24,838 24,608 24,849 4,457 4 341 4,361 4,140 1,238 1 185 1,178 983 1,052 1,098 1,218 1,108 2,888 3,554 3,446 3,746 9,635 10,178 10,203 9,977 Statement of Federal Reserve Agents1 accounts at close of business on Fridays, Mar. 3 to Mar. 24, 1916. [In thousands of dollars.] Boston. Federal Reserve notes: Received from the Comptroller— Mar.3 Mar. 10 Mar. 17 Mar.24 Returned to the Comptroller— Mar.3 Mar. 10 Mar. 17 Mar.24 Chargeable to the Federal Reserve Agent— Mar.3 Mar. 10... Mar. 17 Mar.24 In hands of Federal Reserve Agent— Mar.3 Mar. 10 Mar. 17 Mar.24 Issued to Federal Reserve Bank, net— Mar,3 Mar/10 Mar. 17 Mar.24. New York. San Phila- Cleve- Rich- AtSt. Minne- Kansas delphia. land. mond. lanta. Chicago. Louis. apolis. City. Dallas. Francisco. 19,380 19,380 19,380 19,380 108,240 109,240 109,240 109,240 15,480 15,480 15,480 15,480 13,000 13,000 13,360 13,360 17,000 17,000 17,000 17,000 20,400 20,400 20,400 20,400 9,380 9,380 9,380 9,600 9,600 9,600 9,600 19,000 13,000 19,580 11,360 19,000 13,000 20,380 11,360 19,000 13,000 20,380 11,360 19,000 13,000 20,380 11,360 1,280 1,296 1,464 1,488 20,343 20,533 21,002 1,715 1,904 1,924 2,065 1,354 848 885 935 1,805 1,977 2,058 2,293 1,138 1,197 1,266 1,299 308 313 320 675 124 136 157 172 128 18,100 18,084 17,916 17,892 87,897 88,707 88,471 88,238 13,765 13,576 13,556 13,415 11,646 12,152 12,475 12,425 15,195 19,262 15,023 19,203 14,942 19,134 14,707 9,072 9,067 9,060 8,705 9,476 9,464 9,443 9,428 8,720 8,720 8,220 7,420 12,000 13,000 13,000 13,000 6,093 6,093 6,093 6,093 1,360 1,360 1,720 1,700 2,800 2,800 2,800 2,800 3,801 3,801 4,081 4,081 4,881 4,881 4,881 4,881 9,380 9,364 9,696 10,472 75,897 75,707 75,471 75,238 7,672 7,483 7,463 7,322 10,286 10,792 10,755 10,725 12,395 12,223 12,142 11,907 15,461 15,402 15,053 15,020 4,191 4,186 4,179 3,824 312 335 Total for system. 275,420 277,220 277,580 277,580 418 871 912 970 1,021 290 448 454 512 29,540 29,899 30,602 32,008 19,000 19,000 19,000 18,872 12,688 12,665 12,665 12,582 18,709 19,468 19,410 19,359 11,070 10,912 10,906 10,848 245,880 247,321 246,978 245,572 1,762 1,762 1,762 1,762 5,800 5,800 5,800 5,800 2,498 2,498 2,473 2,473 4,862 4,928 4,983 4,659 7,714 7,702 7,681 7,666 13,200 13,200 13,200 13,072 10,190 10,167 10,192 10,109 13,847 14,540 14,427 14,700 54,577 55,643 55,813 54,669 11,070 10,912 10,906 10,848 191,303 191,678 191,165 190,903 200 FEDERAL RESERVE BULLETIN. APRIL 1,1916. Statement of Federal Reserve Agents' accounts at close of business on Fridays, Mar. 3 to Mar. 24, 1916—Continued. [In thousands of dollars.] Boston. Amounts held by Federal Reserve Agent: In reduction of liability on outstanding notesGold coin and certificates on handMar^........ Mar. 10.. Mar. 1 7 . . . . . . . Mar. 24 Lawful money on hand — Mar. 3 Mar. 10 . Mar. 17 Mar 24 Credit balances in gold redemption fund— Mar. 3 Mar. 10 Mar. 17 Mar. 2 4 . . . . . . . Credit balances with Federal Reserve B o a r d Mar 3 Mar. 10 . . . Mar. 17 Mar. 24 As security for outstanding notes— Commercial paperMar 3 Mar. 10 . Mar. 17 Mar. 24 TotalMar. 3 Mar. 10 Mar. 17 Mar. 24 Memorandum: Total amount of commercial paper delivered to the Federal Reserve AgentMar 3 Mar. 10 Mar. 17 Mar. 24 New York. Philadelphia. Cleveland. 8,715 8,714 9,065 9,864 71,398 71,398 71,398 71,398 3,530 3,360 3,360 3,360 9,760 9,760 9,760 9,760 665 650 631 608 4,499 4,309 4,073 3,840 542 523 503 482 526 1,032 995 965 3,600 3,600 3,600 3 480 9,380 9,364 9,696 10,472 75,897 75,707 75,471 75,238 7,672 7,483 7,463 7,322 10,286 10,792 10,755 10,725 RichAtmond. lanta. Chicago. St. Louis. Minneapolis. Kansas City. Dallas. 2,850 2,850 2,850 2,850 10,200 10,200 10,200 10,050 4,300 4,300 4,300 4,300 9,540 9,540 9,540 9,540 San Francisco. Total for system. 120,293 120,122 120,473 121,122 475 453 472 407 716 657 1,088 1,055 431 426 419 414 374 412 391 376 650 650 650 672 585 562 562 479 118 646 669 638 290 292 286 278 9,871 10,612 10,739 10,214 6,850 6,800 6,700 6,530 12,450 12,450 11,950 11,950 3,760 3,760 .3,760 3,410 4,490 4,440 4,440 4,440 2,350 2,350 2,350 2,350 4,100 4,100 4,100 4,100 1,190 620 540 540 10,780 10,620 10,620 10,570 49,570 48,740 48,060 47,370 5,070 4,970 4,970 4,970 2,295 2 295 2,015 2,015 1,205 1,205 1,230 1,230 2,999 3,734 6,678 3,982 12,395 12,223 12,142 11,907 15,461 15,402 15,053 15,020 10,190 10,167 10,192 10,109 13,847 14,540 14,427 14,700 5,339 5,315 5,499 5,015 2,297 2,295 2,015 2,015 1,217 1,208 1,231 1,235 4,186 4,209 4,278 4,108 4,191 4,186 4,179 3,824 7,714 7,702 7,681 7,666 13,200 13,200 13,200 13,072 11,569 12,204 11,893 12,197 11,070 10,912 10,906 10,848 191,303 191,678 191,165 190,903 13,039 13,027 13,023 12,373 2G1 FEDERAL RESERVE BULLETIN-. APRIL 1,1916. GOLD IMPORTS AND EXPORTS. Imports of gold, by customs districts, Jan. 1 to Mar. 17, 1916. Total. St. Lawrence. Michigan. Dakota. Buffalo. Washington. San Francisco. Laredo. El Paso. Arizona. New Orleans. Florida. New York. Maine and New Hampshire. [In thousands of dollars.] Week ending Feb. 25. Ore and base bullion United States mint or assay office bars Bullion refined. . United States coin Foreign coin Total 58 6 222 5 88 9 368 9 11 20 4 14 75 99 20 4 113 162 13 16 97 1 290 162 339 1 97 75 175 16 97 34 37 53 18 1 27 140 53 204 3 316 5 34 108 1 27 716 3 72 65 37 8 6 236 37 521 20 2,482 102 8 6 3,296 4 66 219 165 708 26 118 1 889 Week ending Mar. 8. Ore and base bullion United States mint or assay office bars Bullion refined United States coin Foreign coin Total 3 15 23 5 181 3 316 523 15 41 6 421 7 3 Week ending Mar. 10. Ore and base bullion United States mint or assay office bars Bullion, refined United States coin Foreign coin Total.. 13 22 93 2,433 49 511 13 13 24 2 22 2,529 20 92 Week ending Mar. 17. 9 12 Ore and base bullion United States mint or assay office bars Bullion, refined. . . . . . . . . . United States coin Foreign coin Total 520 4 118 1 654 1 6 28 68 72 91 21 100 180 165 4 66 1,236 177 704 389 286 41 139 776 281 62 1,491 1,948 776 5,970 7 94 11 20,026 49 4,101 1,031 1,196 62 389 18 28,814 25 9 49 2 6 73 112 51 49 45 26 157 77 165 Jan. 1 to Mar. 17, 1916. Ore and base bullion United States mint or assay office bars Bullion refined United States coin Foreign coin Total 1 191 3,841 8 17,573 1 21,613 33 33 5 9 87 2,433 202 1,1916. FEDERAL BESEEVE BULLETIN. Exports of gold, by customs districts, Jan. 1 to Mar. 17, 1916. Total. Vermont. St. Lawrence. Michigan. Dakota. Buffalo. Washington. San Francisco. Hawaii. Alaska. New York. Porto Rico. [In thousands oi dollars.] • Week ending Feb. 25. United States mint or assay office bars Bullion, refined: Foreign .. . United States coin Foreign coin Total 3 100 . . 1 3 1,438 1,034 1,436 104 1 4 1,438 1,034 1,497 1 4,077 61 6 100 3 908 62 Week ending Mar. 5. Bullion refined domestic United States coin Forsisrn coin Total 4 25 1,419 1,165 1,717. . ... 2,612 4 4,301 2,612 25 3 4 29 1,429 3,780 1,724 3 4 6,962 10 3 13 Week ending Mar. 10. Ore and base bullion United States mint or assay office bars Bullion, refined, domestic. . United States coin Foreign coin Total .. .. 28 950 . 55 1,000 11 352 7 5 1,055 11 1,302 40 400 5 16 1 28 950 8 423 1,000 1 2,409 Week ending Mar. 17. Ore and base bullion United States mint or assay office bars Bullion,refined, domestic . United States coin Foreign coin . . . . . . . . .. 743 107 510 10 573 1,360 Total 5 416 750 690 510 7 973 21 7 10 2,371 Jan. 1 to Mar. 17. Ore and base bullion United States mint or assay office bars Bullion, refined: Domestic Foreign United States coin Foreign coin Total 4 758 1,451 2,164 1,438 7,232 9,476 15 21,068 15 4 56 59 60 505 701 1 22 1 29 3,609 3 9 2 29 5,761 60 150 3 7 5 5 ""z 1,010 1,381 750 10 2,901 755 119 2,774 2,906 1,438 12,659 10,860 30,756 203 FEDERAL EESEEVE BULLETIN. APRIL 1,1916. EARNINGS ON INVESTMENTS OF FEDERAL RESERVE BANKS. Average amounts of earning assets held by each Federal Reserve Bank during February, 1916, earnings from each class of earning assets, and annual rates of earnings on the basis of February, 1916, returns. Average balances for the month of the several classes of earning assets. Bills rediscounted, members. Bills bought in open market. $194,000 182,000 217,000 272,000 6,751,000 4,949,000 2,217,000 880,000 986,000 2,406,000 4,658,000 422,000 $8,515,000 12,152,000 1,674,000 976,000 164,000 343,000 1,848,000 783,000 508,000 483,000 26,000 779,000 $3,412,000 9,482,000 2,962,000 2,955,000 81,000 300 2,233,000 698,000 1,169,000 435,000 24,134,000 28,251,000 Boston New Y o r k . . . . Philadelphia.. Cleveland Richmond Atlanta , Chicago St. Louis Minneapolis Kansas City Dallas San Francisco.. Total : Earnings from— Bills Bills redis- bought in Municipal counted, open marwarrants. members. ket. Boston New York.... Philadelphia.. Cleveland Richmond Atlanta Chicago St. Louis Minneapolis.. Kansas City.. Dallas San Francisco Total. r $594.20 $13,864.56 580.20 19,776.61 2,742.72 706.67 1,494.01 1,012.18 396.87 20,451.74 659.57 13,855.52 8,594.63 2,997.50 3,036.32 1,247.19 3,791.66 828.96 814.97 9,024.84 16,019.40 62.50 1,716.34 1,386.73 $6,005.07 17,138.61 5,394.88 6,868.95 199.24 1.10 4,427.89 1,207.15 2,719.73 811.70 79,383.70 46,772.24 46,272.19 1,997.92 $1,593.26 Total. 1,231,000 287,000 390,000 552,000 40,000 204,000 111,000 688,000 988,000 295,000 035,000 $13,107,000 21,816,000 8,140,000 7,593,000 7,548,000 5,332,300 12,502,000 5,472,000 4,351,000 6,312,000 5,979,000 5,467,000 24,658,300 26,576,000 103,619,300 Calculated annual rate of earnings from— United bonds. United States bonds. Municipal warrants. Total. 7,474.13 816.57 63.34 12,320.34 4,969.24 3,308.79 5,242.83 2,908.94 5,058.33 $22,057. 37,495. 14,113. 16,849. 21,864. 14,579. 28,340. 10,459. 10,649. 15,894. 18,990. 10,159. 49,024.76 221,452.8 Bills Bills rebought discounted, in open members. market. Municipal warrants. United States bonds. All investment operations. Per cent. Per cent. Per cent. Per cent. Per cent. 2.19 2.12 3.87 2.05 2.04 2.28 2.17 4.02 2.05 2.30 2.19 4.10 2.07 2.02 2.93 2.80 4.70 1.93 2.78 3.11 3.66 3.82 3.05 1.87 4.47 3.45 3.53 2.43 2.00 2.50 2.86 4.89 2.05 2.51 2.18 2.41 4.35 2.01 2.02 2.94 3.09 4.85 2.06 2.47 2.35 3.18 4.73 2.13 2.21 4.01 4.34 3.03 2.83 2.34 5.14 2.25 2.10 2.05 4.15 2.07 2.39 2.33 2.70 NOTE.—With the view of insuring uniform treatment of the items reported by all banks, the average yearly rates were obtained through multiplying all the calculated average monthly rates by the fraction 366/29. It is thought that on the whole the results thus obtained provide a satisfactory basis for comparison between the individual banks. 204 FEDERAL RESERVE BULLETIN. APRIL 1,1916. DISCOUNT RATES. Discount rates of each Federal Reserve Bank in effect Mar. 23, 1916. Trade acceptances. AgriculMaturities Maturities tural Maturities Maturities and of over 60 of over 30 of over 10 of 10 days to 30 days, to 60 days, to 90 days, live-stock 60 to and less. inclusive. inclusive. inclusive. paper over To 60 days, Over 90 days, inclusive. inclusive. 90 days. Boston... New York Philadelphia Cleveland ..... Richmond Atlanta ... Atlanta (New Orleans branch). Chicago St. Louis.. Minneapolis Kansas City Dallas '... San Francisco Commodity paper. Paper bought in open market. 13 3 3* 3 3-1-4 31 j 3-5 1 Rate for commodity paper maturing within 90 days. 2 Rate for bills of exchange in open market operations. 3 Rate for trade acceptances bought in open market without member bank indorsement. * A rate of 2 to 4 per cent for bills with or without member bank indorsement has been authorized. 6 Rate for commodity paper maturing within 30 days, 3§ per cent; over 30 to 60 days, 4 per cent; over 60 to 90 days, % per cent; over 90 days, 5 per cent. • INDEX. Page. Acceptances 194,195 Address of Hon. W. P. G. Harding, before Birmingham Chamber of Commerce 160-164 Audit of gold settlement fund 165 Business conditions ... 174-188 Commercial paper discounted 189-192 Commodity paper discounted 193 Death of Felix Martinez, class C director of Dallas bank 152 Discount rates in effect , 204 Distribution of discounts 189-193 Dividends on Federal Reserve Bank stock exempt from income tax 153 Earnings and investments of Federal Reserve Banks : 203 Federal Reserve Agent at Richmond, appointment of 153 Federal Reserve Agents' accounts, statement of... 199 Federal Reserve Bank statements 197-200 Federal Reserve Districts, changes in 153-155 Federal Reserve notes, circulation of 199 Fiduciary powers granted 169 Gold imports and exports 201, 202 Gold settlement fund 165-167 Audit of 165 Governors of Federal Reserve Banks, meeting of.. 152 Informal rulings of the Board: Stock values paid to withdrawing banks 168 Trade acceptances, classification of 168 . Holding political office 168 Savings accounts pass books 168 Intradistrict clearing system, additions to and withdrawals from 169 Law department 170-173 Liquidating member banks 170 Purchase of warrants 170 Loans on farm land 171 Stamp tax on certificate of stock, decision of Attorney General 172 Leave of absence granted H. P. Willis. . 152 Press statements.. 169 Resources and liabilities of Federal Reserve Banks.. Trade acceptances discounted 193 United States bonds, purchase of 156-159 Exchange of twos for threes 153 Work of the Board 151 O
@FedFRASER