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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
on
balance of
cent gold bonds, bearing the circulation privi- your allotment. 1; any October 1,to apply for
If
bank fails
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
from
$50,000.
serve Banks to the necessary obligation with All exchangesof notes made $1,000 to as possiwill be
as nearly
the 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. Under this arrangement $15,000,000 may be con- reason of the transfer of banks in Fairfield
verted on April 1 and $7,500,000 each on the County, Conn., from the Boston district to 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 secure
to
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
consols of 1930
bank notes outstanding, secured by United United States loan of 1908-1918.
3
United States
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

Balance to
credit Feb.
Balance
24,1916, plus
net deposits Mar. 23,1916.
of gold since
that date.

Decrease.

344,000
749,000
409,000
023,000
655,000
736,000
119,000
621,000
049,000
455,000
471,000
039,000

$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

559,000
4,600,000

96,638,000

79,670,000

79,670,000

6,319,000

$12,939,000
8,933,000
11,755,000
13,176,000
5,001,000

Toted.

7,461,666

96,638,000

Increase.

$99,000

5,649,000
7,995,000
12,131,000
16,659,000

..

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 o—
f

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis..
Kansas City
Dallas...............
San Francisco

78,960,000

Federal Reserve
Bank o—
f

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.

Total
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

$1,386,000

",$2*726*666"
74,000

"$i66'666"

70,000 "'$566,'666'
140,000
386,000
250,000
480,000
500,000

SOO^OO

310,000

2,116,000

2,116,000

5,099,000

Transfers.

Gold.
Withdrawn.

Settlement of Mar. 16,1916.

Transfers.

Gold.

45,323,000

Total
credits.

Net
credits.

$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

Debit.

Net.
debits.

Total
debits.

Total
credits.

59,000

Credit.

$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

$250,000
1,004,000
141,000

$120,000
$100,000

310,000
$400,000
350,000
700,000
16,000

30,000
5p,000
130,000

417,000
250,000

830,000

1,783,000

78,000
1,116', 000
339,000

1,783,000

592,000

Settlement of Mar. 23,1916.

$1,398,000

Deposited.

512,000
1,326,000

M a r . 16,
1916,
balance in
fund after
clearing.

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
160,000 10,620,000
;
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 necessary, be taken within the range of bankers7
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.
Any member bank, even though its shareholders have a vote to go into vokmtary liquidation.
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.
Section 18 of the Federal Reserve Act pro- stock in its Federal Reserve Bank. Since a
bank 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
issued in
sued until its affairs and business are com- sale of public securities. Warrants which are municipal
anticipation of the receipt of the proceeds of
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.]
Over
To $100. Over $100 Over $250 Over $500 Over $1,000 Over $2,500 Over $5,000 $10,000.
to $5,000. to $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.




. . . . .

Over
$100
to
$250.
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

. .

.:.

•

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

Paper
Total
maturing commerafter 90
cial paper
days.
discounted.

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

1

2.8

2.0

6

2.8

86.7

20.1

1
6

6.4
6.2

47.2

31.0

13.9
84.4

613

Total
District No. 3—Philadelphia:

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

11.2
.4

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

Total

_....

District No. 5.—Richmond:
District of Columbia
Maryland
North Carolina
South Carolina
Virginia
West Virginia
......

...

District No. 6—Atlanta:
Alabama
Florida
Georgia
MississiDDi
Tennessee
Total
District No. 7—Chicago:
Illinois
Indiana
Iowa
Michigan

•'
,....

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

33

11.0

45.2

104.8

.91.9

85.8

338.7

64
157
61

.

3.7

989

Ohio
Ppnnsvlvania
West Virginia

2
6
2
3

1.9
9.3

18.8
33.7
25.9
38.7

77
51

Total
District No. 8—St. Louis:
Arkansas
••-••-

Indiana
TCfyntnokv
MississiDDi
Missouri
TpTinpsspe

69
17

3.3

4.0

7.1

9.2

4.1

3.3
6.4

22.5
16.5

.5
.7
6.1

31.4

6.5

12.6
11.5

3.4

4.6

22.2

1.0

.6.5

33.9
77.2
147.1
861.2
1,246.3
588.9
54.3

81
20

District No. 9—Minneapolis:

7
2

1.4
4.2

32.8

29.4
2.0

12.0

75.6

2.6

469

Total

Montana
"NFnrfh Dalrnta
Smith T)a1cota
Wisconsin

2
7

628

Total
District No. 4.—Cleveland:

Illinois

1

70
534

New Jersey
Pennsylvania...




Paper
maturing
after 60
days but
within 90
days.

132
481

District No. 2—New York:
New Jersey
New York
.

Total

Paper
maturing
after 30
days but
within 60
days.

433

Total

Total

2
1
2

Paper
maturing
after 10
days but
within 30
days.

9.8

Paper
maturing
within 10
days.

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
».
-

- -. -

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.]

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 .

3
7
3
6

.7

18
.7

37

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

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

,
. . .

Oklahoma
Texas
Total
District No. 12—San Francisco:
Alaska
Arizona
California
Idaho
..
. .
Nevada
Oregon
Utah
Washington
Total

Paper
maturing
within 10
days.

Paper
maturing
after 10
days but
within 30
days.

14.3

Number , Number
of banks
of member accommobanks.
dated.

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

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

1

529

24

.6

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
number of Number of maturing
banks
member accommo- within 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,
167,800
87,
160,
74,
1,958,800

Total.
1

$137,300
202,000
8,200
32,600
47,300
11,700
5,300
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

.

2,102,717

1,368,505

10,427

Total.

12,848
24,003

1,040

Total

$256

$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.

139,522

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
compa- banks. Private
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
Dal- Fran- Total
for
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

New
York.

Philadelphia.

Cleve- Richland. mond.

497
48

277

101
64
50

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

Chicago.

San
St. Minne- Kansas
Louis. apolis. City. Dallas. Francisco.

41

545

Total

1,246
587
909

Atlanta.

695

156

7

103

45
20
1

69
9

Total.

50

61
6
125

2,980
734
1,453

50

192

5,167

Total.

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

29,054

5,953

2,778

250

411

5,955

1,824

1,613

1,884

3,143

70,703

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

Total
Total acceptances bought:
Calendar year 1915
January, 1916 .
February, 1916

156

14,105
2,831
3,727

Total
After 60 days but within 3
months:
Calendar year 1915
January, 1916 .
February, 1916

7

17,838

After 30 but within 60 days:
Calendar year 1915
January, 1916
February, 1916

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

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

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

152,208

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

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
Bankmember ers' ac- Trade
banks. cept- accept- Total.
ances. 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

Total invest-.
ment operations.

United States bonds.

Municipal warrants.

Total.

2 per
cent.

3 per
cent.

4 per
cent.

Total.

1916

1915

449.0
546.5

10.5

681.8
799.6

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

'"%Q

3,411.1
4,388.0

6,148.6
4,964.8

200.0

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

7.3
.5

374.6
708.6

5.0

77.6
5.0

1,000.0
500.0

77.6

300
65

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

330.0
561.0

25.5

55.2

483.7
1,306.3

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.
Chicago. Louis. Minne- Kansas Dallas. Franapolis. 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
St.
Chicago. Louis. Minne- Kansas Dallas. Franapolis. 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

7,600
7,375
2,160
7,384

439
42
45
46
49

32,597
34,439
33,419
33,810

215,931
215,335
211,454
222,554

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.
Chicago. Louis. Minne- Kansas Dallas. Franapolis. 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

4,499
4,309
4,073
3,840

542
523
503
482

526
1,032
995
965

St.
Louis.

Minneapolis.

Kansas
City.

Dallas.

2,850
2,850
2,850
2,850

Chicago.

9,760
9,760
9,760
9,760

665
650
631
608

RichAtmond. lanta.

10,200
10,200
10,200
10,050

4,300
4,300
4,300
4,300

San
Francisco.

9,540
9,540
9,540
9,540

Total
for
system.

120,293
120,122
120,473
121,122

75,897
75,707
75,471
75,238

7,672
7,483
7,463
7,322

10,286
10,792
10,755
10,725

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

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
9,380
9,364
9,696
10,472

716
657
1,088
1,055

6,850
6,800
6,700
6,530

3,600
3,600
3,600
3 480

475
453
472
407

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
88

9

14

75

99

162
13

16

97
1

9

368

20

4

5

11

20

4

113

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
13

511

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

520
4
118

1

654

Total

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

104
1

1,438
1,034
1,436

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.

.

...

3

2,612
4

4,301

2,612

25

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

352

1,055

.

11
11

1,302

5
16

28
950
8
423
1,000

1

40

400

1

7
5

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

56

59
60

505

701

4

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 mar- warrants.
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 Maturities Maturities tural and
of over 10 of over 30 of over 60 live-stock
of 10 days to 30 days, to 60 days, to 90 days,
and less. inclusive. inclusive. inclusive. paper over To 60 days, Over 60 to
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


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102